Document:

Exhibit 10(d)

 

Execution Version

 

 

$2,000,000,000

 

THREE-YEAR CREDIT AGREEMENT

 

among

 

CBS CORPORATION,

 

CBS OPERATIONS INC.,

 

THE SUBSIDIARY BORROWERS
PARTIES HERETO,

 

THE LENDERS NAMED HEREIN,

 

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent,

 

CITIBANK, N.A.,

as Syndication Agent

 

and

 

BANK OF AMERICA, N.A.,
DEUTSCHE BANK AG NEW YORK BRANCH,

MORGAN STANLEY MUFG LOAN PARTNERS, LLC, 

THE ROYAL BANK OF SCOTLAND plc, and UBS LOAN FINANCE LLC

as Co-Documentation Agents,

 

Dated as of November 4,
2009

 

 

J.P. MORGAN SECURITIES INC.

and

CITIGROUP GLOBAL MARKETS INC.,

as Joint Lead Arrangers

and Joint Bookrunners

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE
  I DEFINITIONS

  	
  1

  
	
  SECTION 1.1.

  	
  Defined
  Terms

  	
  1

  
	
  SECTION 1.2.

  	
  Terms
  Generally

  	
  21

  
	
   

  	
   

  
	
  ARTICLE
  II THE CREDITS

  	
  23

  
	
  SECTION 2.1.

  	
  Commitments

  	
  23

  
	
  SECTION 2.2.

  	
  Revolving
  Credit Loans; Competitive Loans

  	
  24

  
	
  SECTION 2.3.

  	
  Competitive
  Bid Procedure

  	
  25

  
	
  SECTION 2.4.

  	
  Revolving
  Credit Borrowing Procedure

  	
  28

  
	
  SECTION 2.5.

  	
  Repayment
  of Loans

  	
  28

  
	
  SECTION 2.6.

  	
  Swingline
  Loans

  	
  28

  
	
  SECTION 2.7.

  	
  Letters
  of Credit

  	
  31

  
	
  SECTION 2.8.

  	
  Conversion
  and Continuation Options

  	
  35

  
	
  SECTION 2.9.

  	
  Fees

  	
  36

  
	
  SECTION 2.10.

  	
  Interest
  on Loans; Eurocurrency Tranches; Etc.

  	
  37

  
	
  SECTION 2.11.

  	
  Default
  Interest

  	
  38

  
	
  SECTION 2.12.

  	
  Alternate
  Rate of Interest

  	
  38

  
	
  SECTION 2.13.

  	
  Termination
  and Reduction of Commitments

  	
  39

  
	
  SECTION 2.14.

  	
  Optional
  Prepayments of Revolving Credit Loans

  	
  40

  
	
  SECTION 2.15.

  	
  Reserve
  Requirements; Change in Circumstances

  	
  40

  
	
  SECTION 2.16.

  	
  Indemnity

  	
  42

  
	
  SECTION 2.17.

  	
  Pro
  Rata Treatment; Funding Matters; Evidence of Debt

  	
  42

  
	
  SECTION 2.18.

  	
  Sharing
  of Setoffs

  	
  44

  
	
  SECTION 2.19.

  	
  Payments

  	
  45

  
	
  SECTION 2.20.

  	
  Taxes

  	
  45

  
	
  SECTION 2.21.

  	
  Termination
  or Assignment of Commitments Under Certain Circumstances

  	
  47

  
	
  SECTION 2.22.

  	
  Currency
  Equivalents

  	
  48

  
	
  SECTION 2.23.

  	
  Judgment
  Currency

  	
  49

  
	
  SECTION 2.24.

  	
  Defaulting
  Lenders

  	
  50

  
	
   

  	
   

  
	
  ARTICLE
  III REPRESENTATIONS AND WARRANTIES

  	
  52

  
	
  SECTION 3.1.

  	
  Corporate
  Existence

  	
  52

  
	
  SECTION 3.2.

  	
  Financial
  Condition

  	
  52

  
	
  SECTION 3.3.

  	
  Litigation

  	
  53

  
	
  SECTION 3.4.

  	
  No Breach, etc.

  	
  53

  

 

i

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 3.5.

  	
  Corporate
  Action

  	
  53

  
	
  SECTION 3.6.

  	
  Approvals

  	
  54

  
	
  SECTION 3.7.

  	
  ERISA

  	
  54

  
	
  SECTION 3.8.

  	
  Taxes

  	
  54

  
	
  SECTION 3.9.

  	
  Investment
  Company Act

  	
  54

  
	
  SECTION 3.10.

  	
  Environmental

  	
  54

  
	
  SECTION 3.11.

  	
  Material
  Subsidiaries

  	
  54

  
	
   

  	
   

  
	
  ARTICLE
  IV CONDITIONS OF EFFECTIVENESS AND LENDING

  	
  54

  
	
  SECTION 4.1.

  	
  Effectiveness

  	
  54

  
	
  SECTION 4.2.

  	
  Initial
  Loans to Subsidiary Borrowers

  	
  55

  
	
  SECTION 4.3.

  	
  All
  Credit Events

  	
  55

  
	
   

  	
   

  
	
  ARTICLE
  V COVENANTS

  	
  56

  
	
  SECTION 5.1.

  	
  Financial
  Statements

  	
  56

  
	
  SECTION 5.2.

  	
  Corporate
  Existence, Etc.

  	
  59

  
	
  SECTION 5.3.

  	
  Insurance

  	
  59

  
	
  SECTION 5.4.

  	
  Prohibition
  of Fundamental Changes

  	
  59

  
	
  SECTION 5.5.

  	
  Limitation
  on Liens

  	
  60

  
	
  SECTION 5.6.

  	
  Limitation
  on Subsidiary Indebtedness

  	
  61

  
	
  SECTION 5.7.

  	
  Financial
  Covenants

  	
  62

  
	
  SECTION 5.8.

  	
  Use
  of Proceeds

  	
  62

  
	
  SECTION 5.9.

  	
  Transactions
  with Affiliates

  	
  63

  
	
  SECTION 5.10.

  	
  Negative
  Pledge Clauses

  	
  63

  
	
   

  	
   

  
	
  ARTICLE
  VI EVENTS OF DEFAULT

  	
  64

  
	
   

  	
   

  
	
  ARTICLE
  VII THE AGENTS

  	
  66

  
	
   

  	
   

  
	
  ARTICLE
  VIII GUARANTEES

  	
  68

  
	
  SECTION 8.1.

  	
  CBS
  Guarantee

  	
  68

  
	
  SECTION 8.2.

  	
  CBS
  Operations Guarantee

  	
  71

  
	
   

  	
   

  
	
  ARTICLE
  IX MISCELLANEOUS

  	
  74

  
	
  SECTION 9.1.

  	
  Notices

  	
  74

  
	
  SECTION 9.2.

  	
  Survival
  of Agreement

  	
  75

  
	
  SECTION 9.3.

  	
  Binding
  Effect

  	
  75

  
	
  SECTION 9.4.

  	
  Successors
  and Assigns

  	
  75

  
	
  SECTION 9.5.

  	
  Expenses;
  Indemnity

  	
  79

  
	
  SECTION 9.6.

  	
  Right of Setoff

  	
  80

  

 

ii

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 9.7.

  	
  APPLICABLE
  LAW

  	
  81

  
	
  SECTION 9.8.

  	
  Waivers;
  Amendment

  	
  81

  
	
  SECTION 9.9.

  	
  Entire
  Agreement

  	
  82

  
	
  SECTION 9.10.

  	
  WAIVER
  OF JURY TRIAL

  	
  82

  
	
  SECTION 9.11.

  	
  Severability

  	
  82

  
	
  SECTION 9.12.

  	
  Counterparts

  	
  82

  
	
  SECTION 9.13.

  	
  Headings

  	
  82

  
	
  SECTION 9.14.

  	
  Jurisdiction;
  Consent to Service of Process

  	
  82

  
	
  SECTION 9.15.

  	
  Confidentiality

  	
  83

  
	
  SECTION 9.16.

  	
  Patriot Act Notice

  	
  84

  

 

	
  ANNEXES

  	
   

  
	
  Annex
  I

  	
  Pricing
  Grid

  
	
   

  	
   

  
	
  EXHIBITS

  	
   

  
	
  Exhibit A-1

  	
  Administrative
  Questionnaire (Dollars)

  
	
  Exhibit A-2

  	
  Administrative
  Questionnaire (Foreign Currency)

  
	
  Exhibit B-1

  	
  Form of
  Competitive Bid Request

  
	
  Exhibit B-2

  	
  Form of
  Notice of Competitive Bid Request

  
	
  Exhibit B-3

  	
  Form of
  Competitive Bid

  
	
  Exhibit B-4

  	
  Form of
  Revolving Credit Borrowing Request

  
	
  Exhibit B-5

  	
  Form of
  Swingline Borrowing Request

  
	
  Exhibit B-6

  	
  Form of
  Notice of Designated Letter of Credit

  
	
  Exhibit B-7

  	
  Form of
  Subsidiary Borrower Designation

  
	
  Exhibit B-8

  	
  Form of
  Subsidiary Borrower Request

  
	
  Exhibit C

  	
  Form of
  Assignment and Acceptance

  
	
  Exhibit D

  	
  Form of
  Confidentiality Agreement

  
	
  Exhibit E

  	
  Form of
  Closing Certificate

  
	
  Exhibit F

  	
  Form of
  Issuing Lender Agreement

  
	
  Exhibit G

  	
  Form of
  Commitment Increase Supplement

  
	
  Exhibit H

  	
  Form of
  Additional Lender Agreement

  
	
   

  	
   

  
	
  SCHEDULES

  	
   

  
	
  Schedule
  1.1

  	
  Commitments;
  Addresses for Notices

  
	
  Schedule
  1.1(a)

  	
  Guarantees

  
	
  Schedule
  1.1(b)

  	
  Mandatory
  Cost Formula

  
	
  Schedule
  2.7

  	
  Designated
  Letters of Credit

  
	
  Schedule
  5.6

  	
  Subsidiary
  Indebtedness

  
	
  Schedule
  VI(h)

  	
  Judgments

  

 

iii

 

THREE-YEAR CREDIT AGREEMENT entered into as of November 4,
2009, among CBS CORPORATION, a Delaware corporation (“CBS”), CBS OPERATIONS INC., a
Delaware corporation (“CBS
Operations”), each Subsidiary Borrower (as herein defined); the
lenders whose names appear on Schedule 1.1 hereto or who subsequently become
parties hereto as provided herein (the “Lenders”); JPMORGAN CHASE BANK, N.A., a national banking
association (“JPMorgan Chase”),
as administrative agent for the Lenders; CITIBANK, N.A., a national banking
association, as syndication agent for the Lenders (in such capacity, the “Syndication Agent”); and BANK OF
AMERICA, N.A., DEUTSCHE BANK AG NEW YORK BRANCH, MORGAN STANLEY MUFG LOAN
PARTNERS, LLC, THE ROYAL BANK OF SCOTLAND plc, and UBS LOAN FINANCE LLC, as
co-documentation agents for the Lenders (in such capacity, the “Co-Documentation Agents”).

 

ARTICLE
I

DEFINITIONS

 

SECTION 1.1.                Defined Terms.  As used in this Agreement, the following
terms shall have the meanings specified below:

 

“2008 Indenture”
shall mean the Indenture dated as of November 3, 2008, among CBS, CBS
Operations and The Bank of New York Mellon, as Trustee, as amended and
supplemented (including by instruments setting forth the terms of individual
issues of debt securities) prior to the date hereof.

 

“ABR Loan”
shall mean (a) any Revolving Credit Loan bearing interest at a rate
determined by reference to the Alternate Base Rate in accordance with the
provisions of Article II and (b) any ABR Swingline Loan.

 

“ABR Revolving
Credit Loan” shall mean any Revolving Credit Loan that is an ABR
Loan.

 

“ABR Swingline
Exposures” shall mean at any time the aggregate principal amount at
such time of the outstanding ABR Swingline Loans.  The ABR Swingline Exposure of any Lender at
any time shall mean its Revolving Credit Percentage of the aggregate ABR
Swingline Exposures at such time.

 

“ABR Swingline
Loan” shall have the meaning assigned to such term in Section 2.6(a).

 

“Absolute Rate
Loan” shall mean any Competitive Loan bearing interest at a fixed
percentage rate per annum (expressed in the form of a decimal rounded to no
more than four decimal places) specified by the Lender making such Loan in its
Competitive Bid.

 

“Additional Lender”
shall have the meaning assigned to such term in Section 2.1(b).

 

“Additional Lender
Agreement” shall have the meaning assigned to such term in Section 2.1(b).

 

 

“Administrative
Agent” shall mean JPMorgan Chase, together with its affiliates, as
an arranger of the Commitments and as the administrative agent for the Lenders
under this Agreement, and any successor thereto pursuant to Article VII.

 

“Administrative
Agent Fee Letter” shall mean the Fee Letter with respect to this
Agreement between CBS and the Administrative Agent, as amended, supplemented or
otherwise modified from time to time.

 

“Administrative
Agent’s Fees” shall have the meaning assigned to such term in Section 2.9(c).

 

“Administrative
Questionnaire” shall mean an Administrative Questionnaire in the
form of Exhibit A-1 or A-2 hereto.

 

“Affiliate”
shall mean, as to CBS, any Person which directly or indirectly controls, is
under common control with or is controlled by CBS.  As used in this definition, “control” (including, with correlative
meanings, “controlled by” and “under common control with”) shall mean
possession, directly or indirectly, of power to direct or cause the direction
of management or policies (whether through ownership of securities or
partnership or other ownership interests, by contract or otherwise); provided that,
in any event, any Person which owns directly or indirectly 10% or more of the
securities having ordinary voting power for the election of directors or other
governing body of a corporation or 10% or more of the partnership or other
ownership interests of any other Person (other than as a limited partner of
such other Person) will be deemed to control such corporation or other
Person.  Notwithstanding the foregoing, (a) no
individual shall be deemed to be an Affiliate of CBS solely by reason of his or
her being an officer, director or employee of CBS or any of its Subsidiaries
and (b) CBS Operations and CBS and their Subsidiaries shall not be deemed
to be Affiliates of each other, unless expressly stated to the contrary).

 

“Agents”
shall mean the collective reference to the Administrative Agent, the Joint Lead
Arrangers, the Syndication Agent and the Co-Documentation Agents.

 

“Aggregate LC
Exposure” shall mean, at any time, the sum of (a) the aggregate
undrawn amount of all Letters of Credit outstanding at such time and (b) the
aggregate amount which has been drawn under Letters of Credit but for which the
applicable Issuing Lender or the Lenders, as the case may be, have not been
reimbursed by CBS or the relevant Subsidiary Borrower at such time.

 

“Agreement”
shall mean this Three-Year Credit Agreement, as amended, supplemented or
otherwise modified from time to time.

 

“Alternate Base
Rate” shall mean, for any day, a rate per annum (rounded upwards, if
necessary, to the next 1/100 of 1%) equal to the greatest of (a) the Prime
Rate in effect on such day (or, if such day is not a Business Day, the
immediately proceeding Business Day), (b) the Federal Funds Effective Rate
in effect on such day (or, if such day is not a Business Day, the immediately
proceeding Business Day) plus 1⁄2 of 1% and (c) the Eurocurrency Rate as of
such day (or, if such day is not a Business Day, the immediately proceeding
Business Day) for a one-month Interest Period commencing two Business Days
thereafter plus 1.00%.  For 

 

2

 

purposes hereof, “Prime Rate” shall mean the rate of
interest per annum publicly announced from time to time by the Lender serving
as the Administrative Agent as its prime rate in effect at its principal office
in New York City; each change in the Prime Rate shall be effective on the date
such change is publicly announced as effective; and “Federal Funds Effective Rate” shall mean, for any day, the
weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of
New York, or, if such rate is not so published for any day which is a Business
Day, the average of the quotations for the day of such transactions received by
the Administrative Agent from three Federal funds brokers of recognized
standing selected by it.  If for any
reason the Administrative Agent shall have determined (which determination
shall be conclusive absent manifest error) that it is unable to ascertain the
Federal Funds Effective Rate for any reason, including the inability or failure
of the Administrative Agent to obtain sufficient quotations in accordance with
the terms thereof, the Alternate Base Rate shall be the greater of the rates
referred to in clause (a) or (c) above until the circumstances giving
rise to such inability no longer exist. 
Any change in the Alternate Base Rate due to a change in the Prime Rate,
the Federal Funds Effective Rate or the Eurocurrency Rate shall be effective on
the effective date of such change.

 

“Applicable
Commitment Fee Rate” shall mean the “Applicable Commitment Fee Rate”
determined in accordance with the Pricing Grid set forth in Annex I hereto.

 

“Applicable LC
Fee Rate” shall mean, as at any date, (a) with respect to
Financial Letters of Credit, the Applicable Margin for Eurocurrency Loans on
such date and (b) with respect to Non-Financial Letters of Credit, 50% of
the Applicable Margin for Eurocurrency Loans on such date.

 

“Applicable
Margin” shall mean, as of any date, with respect to (a) any
Eurocurrency Loan that is a Revolving Credit Loan, a rate per annum equal to
the Credit Default Swap Spread in effect for Eurocurrency Loans on such
day and (b) any ABR Loan that is a Revolving Credit
Loan, a rate per annum equal to the Credit Default Swap Spread in effect
for Eurocurrency Loans on such day less 1.0%. 
Notwithstanding the foregoing, the Applicable Margin for Eurocurrency
Loans in effect at any time shall not be less than the “Minimum Applicable
Margin”, and shall not exceed the “Maximum Applicable Margin” as applicable to
Eurocurrency Loans in accordance with the Pricing Grid set forth in
Annex I hereto, and the Applicable Margin for ABR Loans in effect at any time
shall not be less than the “Minimum Applicable Margin” and shall not exceed the
“Maximum Applicable Margin” as applicable to ABR Loans in accordance with said
Pricing Grid.

 

“ASC” shall mean
Financial Accounting Standards Board Accounting Standards Codification.

 

“Assignment and
Acceptance” shall mean an assignment and acceptance entered into by
a Lender and an assignee, and accepted by the Administrative Agent, in the form
of Exhibit C.

 

“Board”
shall mean the Board of Governors of the Federal Reserve System of the United
States.

 

3

 

“Bonds”
shall have the meaning assigned to such term in Section 8.2(g).

 

“Borrower”
shall mean, as applicable, CBS or the relevant Subsidiary Borrower.

 

“Business Day”
shall mean any day (other than a day which is a Saturday, Sunday or legal
holiday in the State of New York) on which banks are open for business in New
York City; provided, however, that, (a) when
used in connection with a Eurocurrency Loan (including a Eurocurrency Loan
denominated in Sterling), the term “Business
Day” shall also exclude any day on which banks are not open for
international business (including dealings in Dollar deposits) in the London
interbank market, (b) when used in connection with any Loan denominated in
Euro, the term “Business Day” shall also exclude
any day which is not a Target Day and (c) when used in connection with any
Loan denominated in Yen, the term “Business Day”
shall also exclude any day on which commercial banks in Tokyo, Japan are
authorized or required by law to remain closed.

 

“Capital Lease
Obligations” of any Person shall mean the obligations of such Person
to pay rent or other amounts under any lease of (or other arrangement conveying
the right to use) real or personal property (other than satellite
transponders), 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, for the purposes of this Agreement, the amount of such
obligations at any time shall be the capitalized amount thereof at such time
determined in accordance with GAAP.

 

“Capital Stock”
shall mean any and all shares, interests, participations or other equivalents
(however designated) of capital stock of a corporation, any and all equivalent
ownership interests in a Person (other than a corporation) and any and all
warrants or options to purchase any of the foregoing.

 

“CBS”
shall have the meaning assigned to such term in the preamble to this Agreement.

 

“CBS Obligations”
shall mean, with respect to CBS, the unpaid principal of and interest on the
Loans made to CBS (including, without limitation, interest accruing after the
maturity of the Loans made to CBS and interest accruing after the filing of any
petition in bankruptcy, or the commencement of any insolvency, reorganization
or like proceeding, relating to CBS, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding) and all other
obligations, including its Guarantee obligations hereunder, and liabilities of
CBS to the Administrative Agent or to any Lender, whether direct or indirect,
absolute or contingent, due or to become due, or now existing or hereafter
incurred, which may arise under, out of, or in connection with, this Agreement.

 

“CBS Operations”
shall have the meaning assigned to such term in the preamble to this Agreement.

 

“CDS Determination Date”
shall mean (a) as to any Eurocurrency Loan, the second Business Day prior
to the Business Day such Eurocurrency Loan is borrowed and, if applicable, the
last Business Day prior to the continuation of such Eurocurrency Loan,
provided, that, in the case of any Eurocurrency Loan having an Interest Period
of greater than three 

 

4

 

months, the last Business
Day prior to each three-month period succeeding such initial three-month period
shall also be a CDS Determination Date with respect to any such Eurocurrency
Loan, with the applicable Credit Default Swap Spread, as so determined, to be
in effect as to such Eurocurrency Loan for each day commencing with the first
day of the applicable Interest Period until subsequently re-determined in
accordance with the foregoing, and (b) as to ABR Loans, initially on the
Effective Date and thereafter on the first Business Day of each succeeding
calendar quarter.

 

“Closing
Certificate” shall mean a certificate, substantially in the form of Exhibit E.

 

“Closing Date”
shall mean November 4, 2009.

 

“Code”
shall mean the Internal Revenue Code of 1986, as the same may be amended from
time to time.

 

“Co-Documentation
Agents” shall have the meaning assigned to such term in the preamble
hereto.

 

“Commitment”
shall mean, with respect to each Lender, the commitment of such Lender to make
Revolving Credit Loans pursuant to Section 2.1, to make or refund ABR
Swingline Loans pursuant to Section 2.6 and to issue or participate in
Letters of Credit pursuant to Section 2.7, as set forth on Schedule 1.1,
as such Lender’s Commitment may be permanently terminated or reduced from time
to time pursuant to Section 2.13 or changed pursuant to Section 9.4.

 

“Commitment Increase
Supplement” shall have the meaning assigned to such term in Section 2.1(b).

 

“Commitment Fees”
shall mean all fees payable pursuant to Section 2.9(a).

 

“Commitment
Utilization Percentage” shall mean on any day the percentage
equivalent to a fraction (a) the numerator of which is the aggregate
outstanding principal amount of Revolving Credit Loans, including the aggregate
outstanding principal amount of Letters of Credit, Swingline Loans and
Competitive Loans, and (b) the denominator of which is the Total
Commitment (or, on any day after termination of the Commitments, the Total
Commitment in effect immediately preceding such termination).

 

“Competitive Bid”
shall mean an offer to make a Competitive Loan pursuant to Section 2.3.

 

“Competitive Bid
Rate” shall mean, as to any Competitive Bid made pursuant to Section 2.3(b),
(a) in the case of a Eurocurrency Competitive Loan, the Margin, and (b) in
the case of an Absolute Rate Loan, the fixed rate of interest offered by the
Lender making such Competitive Bid.

 

“Competitive Bid
Request” shall mean a request made pursuant to Section 2.3 in
the form of Exhibit B-1.

 

5

 

“Competitive Loan”
shall mean a Loan from a Lender to a Borrower pursuant to the bidding procedure
described in Section 2.3.  Each
Competitive Loan shall be a Eurocurrency Competitive Loan or an Absolute Rate
Loan and, subject to Section 2.3(a), may be denominated in Dollars or a
Foreign Currency.

 

“Compliance
Certificate” shall have the meaning assigned to such term in Section 5.1.

 

“Confidential
Information” shall have the meaning assigned to such term in Section 9.15(a).

 

“Confidentiality
Agreement” shall mean a confidentiality agreement substantially in
the form of Exhibit D, with such changes as CBS may approve.

 

“Consolidated
Coverage Ratio” shall mean, for any period, the ratio of (a) Consolidated
EBITDA for such period to (b) Consolidated Interest Expense for such
period.

 

“Consolidated
EBITDA” shall mean, with respect to CBS and its Consolidated
Subsidiaries for any period, operating profit (loss) (excluding that related to
Discontinued Operations), plus other income (loss), plus interest income, plus
depreciation and amortization (excluding amortization related to programming
rights, prepublication costs, videocassettes and DVDs), excluding (a) gains
(losses) on sales of assets (except (I) gains (losses) on sales of
inventory sold in the ordinary course of business and (II) gains (losses)
on sales of other assets if such gains (losses) are less than $10,000,000
individually and less than $50,000,000 in the aggregate during such period), (b) other
non-cash items (including (i) provisions for losses and additions to
valuation allowances, (ii) provisions for restructuring, litigation and
environmental reserves and losses on the Disposition of businesses, (iii) pension
settlement charges, (iv) non-cash expenses associated with grants of stock
options, employee stock purchase plans and other equity-based compensation
awards to employees and directors, and (v) impairment charges) and (c) items
that were subject to capitalization prior to the effectiveness of SFAS
141(R)/ASC 805 but that under such statement are required to be expensed
currently.

 

“Consolidated Indebtedness”
shall mean as at any date the Indebtedness of CBS and its Consolidated
Subsidiaries determined on a consolidated basis that would be reflected on a
consolidated balance sheet as at such date prepared in accordance with GAAP.

 

“Consolidated
Interest Expense” shall mean for any period the gross cash interest
expense of CBS and its Consolidated Subsidiaries on Indebtedness for such
period plus cash dividends paid on preferred stock to Persons other than CBS
and its Wholly Owned Subsidiaries for such period, but excluding the gross cash
interest expense of the Discontinued Operations for such period.

 

“Consolidated Leverage
Ratio” shall mean, as of the last day of any fiscal quarter of CBS,
the ratio of (a) Consolidated Indebtedness as of such last day to (b) Consolidated
EBITDA for the period of four consecutive fiscal quarters then ended.

 

6

 

“Consolidated
Subsidiary” shall mean, as to any Person, each Subsidiary of such
Person (whether now existing or hereafter created or acquired) the financial
statements of which shall be consolidated with the financial statements of such
Person in accordance with GAAP.

 

“Consolidated
Tangible Assets” shall mean at any date the assets of CBS and its
Subsidiaries determined on such date on a consolidated basis, less goodwill and other intangible assets.

 

“Credit Default Swap Spread”
shall mean, at any CDS Determination Date, the credit default swap spread
applicable to Index Debt of CBS interpolated for a period to the Revolving
Credit Maturity Date, determined as of the close of business on the Business
Day immediately preceding such CDS Determination Date, as reported and
interpolated by Markit Group Limited or any successor thereto; provided, that
if such period is less than one year, the Credit Default Swap Spread shall be
based on the credit default swap spread shown for a period of one year.  If at any time the Credit Default Swap Spread
is unavailable, CBS and the Lenders shall negotiate in good faith (for a period
of up to thirty days after the Credit Default Swap Spread becomes unavailable
(such thirty-day period, the “Negotiation Period”))
to agree on an alternative method for establishing the Applicable Rate for
Eurocurrency Loans and ABR Loans.  The
Applicable Margin for Eurocurrency Loans and ABR Loans for any day which falls
during the Negotiation Period shall be based upon the Credit Default Swap Spread
determined as of the close of business on the Business Day immediately
preceding the last CDS Determination Date falling prior to the Negotiation
Period.  If no such alternative method is
agreed upon during the Negotiation Period, the Applicable Margin for
Eurocurrency Loans and ABR Loans for any day subsequent to the end of the
Negotiation Period shall be a rate per annum equal to the “Maximum Applicable
Margin” for Eurocurrency Loans or ABR Loans, as the case may be, referred to in
the definition of “Applicable Margin” in accordance with the
Pricing Grid set forth in Annex I.

 

“Credit Event”
shall mean the making of any Loan or the issuance of any Letter of Credit
hereunder (including the designation of a Designated Letter of Credit as a “Letter of Credit” hereunder).  It is understood that conversions and
continuations pursuant to Section 2.8 do not constitute “Credit Events”.

 

“Debt Rating”
shall mean the rating applicable to CBS’s senior, unsecured,
non-credit-enhanced long-term indebtedness for borrowed money, as assigned by
either Rating Agency.

 

“Default”
shall mean any event or condition which upon notice, lapse of time or both
would constitute an Event of Default.

 

“Defaulting Lender”
shall mean any Lender that has (a) failed to fund any portion of its Loans
within three Business Days of the date required to be funded by it hereunder, (b) notified
CBS, the Administrative Agent or any Lender in writing that it does not intend
to comply with any of its funding obligations under this Agreement or has made
a public statement to the effect that it does not intend to comply with its
funding obligations under this Agreement or generally under other agreements in
which it 

 

7

 

commits to extend credit, (c) failed,
within three Business Days after request by the Administrative Agent, to
confirm that it will comply with the terms of this Agreement relating to its
funding obligations under this Agreement, provided that any such Lender shall
cease to be a Defaulting Lender under this clause (c) upon receipt of such
confirmation by the Administrative Agent, (d) otherwise failed to pay over
to the Administrative Agent or any other Lender any other amount required to be
paid by it hereunder within three Business Days of the date when due, unless
the subject of a good faith dispute, or (e) (i) become or is
insolvent or has a parent company that has become or is insolvent, as
reasonably determined by the Administrative Agent, or (ii) become the
subject of a bankruptcy or insolvency proceeding, or has had a receiver,
conservator, trustee or custodian appointed for it, or has taken, as reasonably
determined by the Administrative Agent, any action in furtherance of, or
indicating its consent to, approval of or acquiescence in any such proceeding
or appointment, or has a parent company that has become the subject of a
bankruptcy or insolvency proceeding, or has had a receiver, conservator,
trustee or custodian appointed for it, or has taken as reasonably determined by
the Administrative Agent, any action in furtherance of, or indicating its
consent to, approval of or acquiescence in any such proceeding or appointment,
provided that a Lender shall not qualify as a Defaulting Lender solely as a
result of the acquisition or maintenance of an ownership interest in such
Lender or its parent company, or to the exercise of control over such Lender or
any Person controlling such Lender, by a governmental authority or
instrumentality thereof.

 

“Designated
Letters of Credit” shall mean each letter of credit issued by an
Issuing Lender that (a) is not a Letter of Credit hereunder at the time of
its issuance and (b) is either (i) listed on Schedule 2.7 or (ii) designated
on or after the Effective Date by CBS or any Subsidiary Borrower, with the
consent of such Issuing Lender, as a “Letter of Credit” hereunder by written
notice to the Administrative Agent in the form of Exhibit B-6.

 

“Discontinued Operations”
shall mean the assets/liabilities and operations classified as “discontinued
operations” pursuant to Accounting Principles Board Opinion No. 30 and
described in the quarterly report of CBS on Form 10-Q for the quarter
ended September 30, 1997, and filed with the SEC on November 14,
1997.

 

“Disposition”
shall mean, with respect to any Property, any sale, lease, assignment,
conveyance, transfer or other disposition thereof; and the terms “Dispose” and “Disposed of” shall have correlative meanings.

 

“Dollars”
or “$” shall mean lawful money of
the United States of America.

 

“Effective Date”
shall mean the date on which the conditions specified in Section 4.1 are
satisfied (or waived in accordance with Section 9.8(b)).

 

“Environmental
Laws” shall mean any and all Federal, state, local and foreign
statutes, laws, regulations, ordinances, rules, judgments, orders, decrees,
permits, concessions, grants, franchises, licenses, agreements or other
governmental restrictions relating to the environment or to emissions,
discharges, releases or threatened releases of pollutants, contaminants,
chemicals, or industrial, toxic or hazardous substances or wastes into the
environment, including, without limitation, ambient air, surface water, ground
water or land, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, 

 

8

 

transport or handling of
pollutants, contaminants, chemicals or industrial, toxic or hazardous
substances or wastes.

 

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

 

“ERISA Affiliate”
shall mean, with respect to CBS, any trade or business (whether or not
incorporated) that is a member of a group of which CBS is a member and which is
treated as a single employer under Section 414 of the Code.

 

“Eurocurrency
Competitive Loan” shall mean any Competitive Loan which is a
Eurocurrency Loan.

 

“Eurocurrency
Loan” shall mean any Loan bearing interest at a rate determined by
reference to the Eurocurrency Rate.

 

“Eurocurrency
Rate” shall mean, with respect to an Interest Period (a) pertaining
to any Eurocurrency Loan (except any Eurocurrency Loan denominated in
Sterling), the rate of interest determined on the basis of the rate for
deposits in Dollars or the relevant Foreign Currency, as the case may be, for a
period equal to such Interest Period commencing on the first day of such
Interest Period appearing on Reuters Screen LIBOR01 (or, in the case of any
Foreign Currency, the applicable Reuters page) as of 11:00 a.m., London
time, two Business Days prior to the beginning of such Interest Period and (b) pertaining
to any Eurocurrency Loan denominated in Sterling, the rate of interest
determined by the Administrative Agent to be the average of the rates quoted by
the Reference Banks at approximately 11:00 a.m., London time (or as soon
thereafter as practicable), on the day two Business Days prior to the first day
of the Interest Period for such Loans for the offering by the Reference Banks
to leading banks in the London interbank market of deposits in Sterling having
a term comparable to such Interest Period and in an amount comparable to the
principal amount of the respective Eurocurrency Loans of the Reference Banks to
which such Interest Period relates, plus (in the case of either (a) or
(b) for a Lender whose applicable lending office is in the United Kingdom
and who has given notice thereof to the Administrative Agent and CBS) the
Mandatory Cost.  With respect to clause (a) of
the preceding sentence, in the event that such rate does not appear on such page of
the Reuters Screen (or on any successor or substitute page of such
service), the “Eurocurrency Rate”
shall instead be the interest rate per annum (rounded upwards, if necessary, to
the next 1/100 of 1%) equal to the average of the rates at which deposits in
Dollars or the relevant Foreign Currency, as the case may be, approximately
equal in principal amount to (i) in the case of a Eurocurrency Tranche,
the portion of such Eurocurrency Tranche of the Lender serving as
Administrative Agent and (ii) in the case of a Eurocurrency Competitive
Loan, a principal amount that would have been the portion of such Loan of the
Lender serving as the Administrative Agent had such Loan been a Eurocurrency
Revolving Credit Loan, and for a maturity comparable to such Interest Period,
are offered by the principal London offices of the Reference Banks (or, if any
Reference Bank does not at the time maintain a London office, the principal
London office of any affiliate of such Reference Bank) for immediately
available funds 

 

9

 

in the London interbank
market at approximately 11:00 a.m., London time, two Business Days prior
to the commencement of such Interest Period.

 

“Eurocurrency
Revolving Credit Loan” shall mean any Revolving Credit Loan which is
a Eurocurrency Loan.  Subject to the
limitations contained herein, a Eurocurrency Revolving Credit Loan may be a
Multi-Currency Revolving Loan.

 

“Eurocurrency
Tranche” shall mean the collective reference to Eurocurrency Loans
denominated in the same currency made by the Lenders, the then current Interest
Periods with respect to all of which begin on the same date and end on the same
later date (whether or not such Eurocurrency Loans shall originally have been
made on the same day).

 

“Euros”
shall mean the single currency of participating member states of the European
Monetary Union.

 

“Event of Default”
shall have the meaning assigned to such term in Article VI; provided that
any requirement for the giving of notice, the lapse of time, or both, has been
satisfied.

 

“Exchange Act
Report” shall have the meaning assigned to such term in Section 3.3.

 

“Excluded Taxes”
shall have the meaning assigned to such term in Section 2.20(a).

 

“Existing Credit Agreement”
shall mean the Amended and Restated Five-Year Credit Agreement dated as of December 8,
2005 among CBS, CBS Operations, any subsidiary borrowers parties thereto, the
lenders parties thereto, JPMorgan Chase, as administrative agent, Citibank,
N.A., as syndication agent and the documentation agents parties thereto.

 

“Existing Indentures”
shall mean (a) the Indenture dated June 1, 1990, among CBS (f/k/a
Westinghouse Credit Corporation) and The Bank of New York, as Trustee, (b) the
Indenture dated November 1, 1990, among CBS (f/k/a Westinghouse Electric
Corporation) and Citibank, N.A., as Trustee, (c) the Indenture dated as of
January 2, 1992, between CBS Broadcasting Inc. and JPMorgan Chase (f/k/a
The Chase Manhattan Bank, N.A.), as Trustee, (d) the Indenture dated May 15,
1995, among CBS (f/k/a Viacom Inc.), CBS Operations (f/k/a Viacom International
Inc.) and The First National Bank of Boston, as Trustee, (e) the Indenture
dated June 22, 2001, among CBS (f/k/a Viacom, Inc.), CBS Operations
(f/k/a Viacom International Inc.) and The Bank of New York, as Trustee, and (f) the
2008 Indenture, each as amended and supplemented (including by instruments
setting forth the terms of individual issues of debt securities) (but without
giving effect to any amendment after the date hereof that imposes a more restrictive
Negative Pledge (as defined in Section 5.10)).

 

“Facility
Exposure” shall mean, with respect to any Lender, the sum of (a) the
Outstanding Revolving Extensions of Credit of such Lender, (b) the
aggregate outstanding 

 

 

10

 

principal amount of any
Competitive Loans made by such Lender and (c) in the case of a Swingline
Lender, the aggregate outstanding principal amount of any Quoted Swingline
Loans made by such Swingline Lender.

 

“Federal Funds
Effective Rate” shall have the meaning assigned to such term in the
definition of “Alternate Base Rate”.

 

“Fees”
shall mean the Commitment Fees, the Administrative Agent’s Fees, the Issuing
Lender Fees and the LC Fees.

 

“Financial
Covenants” shall mean the financial covenants contained in Section 5.7.

 

“Financial Letter
of Credit” shall mean any Letter of Credit that, as determined by
the Administrative Agent acting in good faith, (a) supports a financial
obligation and (b) qualifies for the 100% credit conversion factor under
the applicable Bank for International Settlements guidelines.

 

“Financial
Officer” of any corporation shall mean its Chief Financial Officer,
its Vice President and Treasurer or its Vice President and Chief Accounting
Officer or, in each case, any comparable officer or any Person designated by
any such officer.

 

“Foreign Currency”
shall mean any currency (including, without limitation, any Multi-Currency, but
excluding Dollars) which is readily transferable and readily convertible by the
relevant Lender or Issuing Lender, as the case may be, into Dollars in the
London interbank market.

 

“Foreign Exchange
Rate” shall mean, with respect to any Foreign Currency on a
particular date, the rate at which such Foreign Currency may be exchanged into Dollars,
as set forth at approximately 11:00 a.m., London time, on such date on the
Reuters World Currency Page for such Foreign Currency.  In the event that such rate does not, or
ceases to, so appear on any Reuters World Currency Page, the “Foreign Exchange Rate” with respect to
such Foreign Currency shall be determined by reference to such other publicly
available source for determining exchange rates as may be agreed upon by the
Administrative Agent and CBS or, in the absence of such agreement, such “Foreign Exchange Rate” shall instead be
the arithmetic average of the spot rates of exchange of the Administrative
Agent in the market where its foreign currency exchange operations in respect
of such Foreign Currency are then being conducted, at or about 11:00 a.m.,
local time, on such date for the purchase of Dollars with such Foreign Currency
for delivery two Business Days later.

 

“GAAP”
shall mean generally accepted accounting principles in the United States of
America.

 

“Governmental
Authority” shall mean any Federal, state, local or foreign court or
governmental agency, authority, instrumentality or regulatory body.

 

“Granting Bank”
shall have the meaning specified in Section 9.4(i).

 

11

 

“Guarantee”
of or by any Person shall mean any obligation, contingent or otherwise, of such
Person guaranteeing or entered into with the purpose of guaranteeing any
Indebtedness of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including
any obligation of such Person, direct or indirect, (a) to purchase or pay
(or advance or supply funds for the purchase or payment of) such Indebtedness
or to purchase (or to advance or supply funds for the purchase of) any security
for the payment of such Indebtedness, (b) to purchase Property, securities
or services for the purpose of assuring the owner of such Indebtedness of the
payment of such Indebtedness or (c) to maintain working capital, equity
capital or other financial statement condition or liquidity of the primary
obligor so as to enable the primary obligor to pay such Indebtedness; provided, however, that the term “Guarantee” shall not include endorsements for collection or
deposit, in either case in the ordinary course of business.

 

“Increasing Lender”
shall have the meaning assigned to such term in Section 2.1(b).

 

“Indebtedness”
of any Person shall mean at any date, without duplication, (i) all
obligations of such Person for borrowed money (including, without limitation,
in the case of any Borrower, the obligations of such Borrower for borrowed
money under this Agreement), (ii) all obligations of such Person evidenced
by bonds, debentures, notes or other similar instruments, (iii) all
obligations of such Person to pay the deferred purchase price of Property or
services, except as provided below, (iv) all obligations of such Person as
lessee under Capital Lease Obligations, (v) all Indebtedness of others
secured by a Lien on any Property of such Person, whether or not such
Indebtedness is assumed by such Person, (vi) all Indebtedness of others
directly or indirectly guaranteed or otherwise assumed by such Person,
including any obligations of others endorsed (otherwise than for collection or
deposit in the ordinary course of business) or discounted or sold with recourse
by such Person, or in respect of which such Person is otherwise directly or
indirectly liable, including, without limitation, any Indebtedness in effect
guaranteed by such Person through any agreement (contingent or otherwise) to
purchase, repurchase or otherwise acquire such obligation or any security
therefor, or to provide funds for the payment or discharge of such obligation,
or to maintain the solvency or any balance sheet or other financial condition
of the obligor of such obligation, provided that
Indebtedness of CBS and its Subsidiaries shall not include obligations in
existence on the date hereof in respect of Indebtedness of Discontinued
Operations, and (vii) all obligations of such Person as issuer, customer
or account party under letters of credit or bankers’ acceptances that are
either drawn or that back financial obligations that would otherwise be
Indebtedness; provided, however, that in each
of the foregoing clauses (i) through (vii), Indebtedness shall not include
obligations (other than under this Agreement) specifically with respect to (a) the
production, distribution and acquisition of motion pictures or other
programming rights, talent or publishing rights, (b) guarantees of
Indebtedness that are identified on Schedule 1.1(a) hereto, (c) the
net change in the carrying value of Indebtedness relating to fair value hedges
in accordance with SFAS 133/ASC 815 and (d) securitization transactions
covered by SFAS 166/ASC 860 and SFAS 167/ASC 810.

 

“Indemnified
Person” shall have the meaning assigned to such term in Section 9.5(b).

 

12

 

“Indemnified Taxes”
shall have the meaning assigned to such term in Section 2.20(a).

 

“Index Debt”
shall mean senior, unsecured, non-credit enhanced long-term debt issued by the
Borrower.

 

“Interest Payment
Date” shall mean (a) with respect to any Eurocurrency Loan or
Absolute Rate Loan, the last day of the Interest Period applicable thereto and,
in the case of a Eurocurrency Loan with an Interest Period of more than three
months’ duration or an Absolute Rate Loan with an Interest Period of more than
90 days’ duration, each day that would have been an Interest Payment Date for
such Loan had successive Interest Periods of three months’ duration or 90 days’
duration, as the case may be, been applicable to such Loan and, in addition,
the date of any conversion of any Eurocurrency Revolving Credit Loan to an ABR
Loan, the date of repayment or prepayment of any Eurocurrency Loan and the
applicable Maturity Date; (b) with respect to any ABR Loan (other than an
ABR Swingline Loan which is not an Unrefunded Swingline Loan), the last day of
each March, June, September and December and the applicable Maturity
Date; (c) with respect to any ABR Swingline Loan (other than an Unrefunded
Swingline Loan), the earlier of (i) the day that is five Business Days
after such Loan is made and (ii) the Revolving Credit Maturity Date and (d) with
respect to any Quoted Swingline Loan, the date established as such by the
relevant Swingline Borrower and the relevant Swingline Lender prior to the
making thereof (but in any event no later than the Revolving Credit Maturity
Date).

 

“Interest Period”
shall mean (a) as to any Eurocurrency Loan, the period commencing on the
borrowing date or conversion date of such Loan, or on the last day of the
immediately preceding Interest Period applicable to such Loan, as the case may
be, and ending on the numerically corresponding day (or, if there is no
numerically corresponding day, on the last day) in the calendar month that is 7
days (subject to the prior consent of each Lender) or 1, 2, 3 or 6 months or
(subject to the prior consent of each Lender) 9 or 12 months thereafter, as the
relevant Borrower may elect, and (b) as to any Absolute Rate Loan, the
period commencing on the date of such Loan and ending on the date specified in
the Competitive Bid Request in which the offer to make such Absolute Rate Loan
was extended; provided, however, that (i) if
any Interest Period would end on a day other than a Business Day, such Interest
Period shall be extended to the next succeeding Business Day unless, in the
case of Eurocurrency Loans only, such next succeeding Business Day would fall
in the next calendar month, in which case such Interest Period shall end on the
next preceding Business Day and (ii) notwithstanding anything to the
contrary herein, no Borrower may select an Interest Period which would end
after the Maturity Date applicable to the relevant Loan.  Interest shall accrue from and including that
first day of an Interest Period to but excluding the last day of such Interest
Period.

 

“Issuing Lender”
shall mean any Lender designated as an Issuing Lender in an Issuing Lender
Agreement executed by such Lender, CBS and the Administrative Agent; provided, that the
Issuing Lender may, in its discretion, arrange for one or more Letters of
Credit to be issued by any of its Lender Affiliates (in which case the term “Issuing Lender” shall include such Lender
Affiliate with respect to Letters of Credit issued by such Lender Affiliate); provided, further, with respect to any
Designated Letter of Credit, the term “Issuing
Lender” shall include the Lender or Lender Affiliate of such Lender
which issued such Designated Letter of Credit.

 

13

 

“Issuing Lender
Agreement” shall mean an agreement, substantially in the form of Exhibit F,
executed by a Lender, CBS and the Administrative Agent pursuant to which such
Lender agrees to become an Issuing Lender hereunder.

 

“Issuing Lender
Fees” shall mean, as to any Issuing Lender, the fees set forth in
the applicable Issuing Lender Agreement.

 

“Joint Lead
Arrangers” shall mean J.P. Morgan Securities Inc., a New York
corporation, and Citigroup Global Markets Inc., a New York corporation, as
joint lead arrangers and joint bookrunners.

 

“JPMorgan Chase”
shall have the meaning assigned to such term in the preamble to this Agreement.

 

“LC Disbursement” shall mean any payment or disbursement made
by an Issuing Lender under or pursuant to a Letter of Credit.

 

“LC Exposure”
shall mean, as to each Lender, such Lender’s Revolving Credit Percentage of the
Aggregate LC Exposure.

 

“LC Fee”
shall have the meaning assigned to such term in Section 2.9(b).

 

“Lender Affiliate”
shall mean, (a) with respect to any Lender, (i) an affiliate of such
Lender or (ii) any entity (whether a corporation, partnership, trust or
otherwise) that is engaged in making, purchasing, holding or otherwise
investing in bank loans and similar extensions of credit in the ordinary course
of its business and is administered or managed by a Lender or an affiliate of
such Lender and (b) with respect to any Lender that is a fund which
invests in bank loans and similar extensions of credit, any other fund that
invests in bank loans and similar extensions of credit and is managed by the
same investment advisor as such Lender or by an affiliate of such investment
advisor.

 

“Lenders”
shall have the meaning assigned to such term in the preamble to this Agreement.

 

“Letter of Credit
Sublimit” shall mean, at any time, $300,000,000.

 

“Letters of
Credit” shall mean letters of credit or bank guarantees issued by an
Issuing Lender for the account of CBS or any Subsidiary Borrower pursuant to Section 2.7
(including any Designated Letters of Credit).

 

“Lien”
shall mean any mortgage, deed of trust, pledge, hypothecation, assignment,
deposit arrangement, encumbrance, lien (statutory or other), security interest
or preference, priority or other security agreement or preferential arrangement
of any kind or nature whatsoever, including, without limitation, any
conditional sale or other title retention agreement.

 

“Loan”
shall mean any loan made by a Lender hereunder.

 

14

 

“Loan Documents”
shall mean this Agreement and the Administrative Agent Fee Letter.

 

“Losses”
shall have the meaning assigned to such term in Section 9.5(b).

 

“Mandatory Cost”
shall mean, with respect to any period, the applicable percentage rate per
annum determined in accordance with Schedule 1.1(b)

 

“Margin”
shall mean, as to any Eurocurrency Competitive Loan, the margin (expressed as a
percentage rate per annum in the form of a decimal rounded to no more than four
places) to be added to or subtracted from the Eurocurrency Rate in order to
determine the interest rate applicable to such Loan, as specified in the
Competitive Bid relating to such Loan.

 

“Material
Acquisition” shall mean any acquisition of Property or series of
related acquisitions of Property (including by way of merger) which (a) constitutes
assets comprising all or substantially all of an operating unit of a business
or constitutes all or substantially all of the common stock of a Person and (b) involves
the payment of consideration by CBS and its Subsidiaries (valued at the initial
principal amount thereof in the case of non-cash consideration consisting of
notes or other debt securities and valued at fair market value in the case of
other non-cash consideration) in excess of $100,000,000.

 

“Material Adverse
Effect” shall mean (a) a material adverse effect on the
Property, business, results of operations or financial condition of CBS and its
Subsidiaries taken as a whole or (b) material impairment of the ability of
CBS to perform any of its obligations under this Agreement, excluding any
effects which may result from non-cash charges arising from SFAS 142/ASC 350,
SFAS 144/ASC 360 and/or SFAS 123(R)/ASC 718, as applicable, issued by the
Financial Accounting Standards Board.

 

“Material
Disposition” shall mean any Disposition of Property or series of
related Dispositions of Property which yields gross proceeds to CBS or any of
its Subsidiaries (valued at the initial principal amount thereof in the case of
non-cash proceeds consisting of notes or other debt securities and valued at
fair market value in the case of other non-cash proceeds) in excess of
$100,000,000.

 

“Material
Subsidiary” shall mean any “significant subsidiary” of CBS as
defined in Regulation S-X of the SEC; provided, that each Subsidiary Borrower shall
in any event constitute a Material Subsidiary.

 

“Maturity Date”
shall mean (a) in the case of the Revolving Credit Loans and the ABR
Swingline Loans, the Revolving Credit Maturity Date, (b) in the case of
the Quoted Swingline Loans, the date established as such by the relevant
Swingline Borrower and the relevant Swingline Lender prior to the making
thereof (but in any event no later than the Revolving Credit Maturity Date) and
(c) in the case of Competitive Loans, the last day of the Interest Period
applicable thereto, as specified in the related Competitive Bid Request.

 

“Moody’s”
shall mean Moody’s Investors Service, Inc. or any successor thereto.

 

“Multi-Currency”
shall mean Euros, Sterling and Yen.

 

15

 

“Multi-Currency
Revolving Loans” shall mean each Eurocurrency Revolving Credit Loan
denominated in any Multi-Currency.

 

“Multi-Currency
Sublimit” shall mean with respect to (i) Euros, $350,000,000, (ii) Sterling,
$350,000,000 and (iii) Yen, $200,000,000, as the sublimit may be decreased
from time to time in accordance with Section 2.13.

 

“Multiemployer
Plan” shall mean a multiemployer plan as defined in Section 3(37)
of ERISA to which contributions have been made by CBS or any ERISA Affiliate of
CBS and which is covered by Title IV of ERISA.

 

“Negotiation Period”
shall have the meaning assigned to such term in the definition of Credit
Default Swap Spread.

 

“Non-Consenting
Lender” shall have the meaning assigned to such term in Section 2.21(b).

 

“Non-Financial
Letter of Credit” shall mean any Letter of Credit that is not a
Financial Letter of Credit.

 

“Non-U.S. Person”
shall have the meaning assigned to such term in Section 2.20(f).

 

“Other Lender”
shall have the meaning assigned to such term in Section 2.1(b).

 

“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.

 

“Outstanding
Revolving Extensions of Credit” shall mean, as to any Lender at any
time, an amount equal to the sum of (a) the aggregate principal amount of
all Revolving Credit Loans made by such Lender then outstanding, (b) such
Lender’s LC Exposure at such time and (c) such Lender’s ABR Swingline
Exposure at such time.

 

“Participant Register”
shall have the meaning assigned to such term in Section 9.4(f).

 

“Patriot Act”
shall have the meaning assigned to such term in Section 9.17.

 

“PBGC”
shall mean the Pension Benefit Guaranty Corporation referred to and defined in
ERISA, or any successor thereto.

 

“Person”
shall mean any natural person, corporation, business trust, joint venture,
association, company, partnership, limited liability company or other entity,
or any government or any agency or political subdivision thereof.

 

16

 

 

“Plan”
shall mean any employee pension benefit plan as defined in Section 3(2) of
ERISA (other than a Multiemployer Plan) subject to the provisions of Title IV
of ERISA or Section 412 of the Code and which is maintained for employees
of CBS or any ERISA Affiliate.

 

“Prime Rate”
shall have the meaning assigned to such term in the definition of “Alternate
Base Rate”.

 

“Pro Forma Period”
shall have the meaning assigned to such term in Section 1.2(c).

 

“Property”
shall mean any right or interest in or to property of any kind whatsoever,
whether real, personal or mixed and whether tangible or intangible, including,
without limitation, Capital Stock.

 

“Quoted Swingline
Loans” shall have the meaning assigned to such term in Section 2.6(a).

 

“Quoted Swingline
Rate” shall have the meaning assigned to such term in Section 2.6(a).

 

“Rating Agencies”
shall mean S&P and Moody’s.

 

“Reference Banks”
shall mean JPMorgan Chase and Citibank N.A.

 

“Register”
shall have the meaning assigned to such term in Section 9.4(d).

 

“Regulation D”
shall mean Regulation D of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

 

“Regulation U”
shall mean Regulation U of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

 

“Required Lenders”
shall mean, at any time, Lenders whose respective Total Facility Percentages
aggregate more than 50%.

 

“Responsible
Officer” of any corporation shall mean any executive officer or
Financial Officer of such corporation and any other officer or similar official
thereof responsible for the administration of the obligations of such
corporation in respect of this Agreement (or, in the case of matters relating
to ERISA, any officer responsible for the administration of the pension funds
of such corporation).

 

“Revolving Credit
Borrowing Request” shall mean a request made pursuant to Section 2.4
in the form of Exhibit B-4.

 

“Revolving Credit
Loans” shall mean the revolving loans made by the Lenders to any
Borrower pursuant to Section 2.4. 
Each Revolving Credit Loan shall be a Eurocurrency Loan or an ABR Loan.

 

17

 

“Revolving Credit
Maturity Date” shall mean December 8, 2012.

 

“Revolving Credit
Percentage” of any Lender at any time shall mean the percentage of
the aggregate Commitments (or, following any termination of all the
Commitments, the Commitments most recently in effect) represented by such
Lender’s Commitment (or, following any such termination, the Commitment of such
Lender most recently in effect).

 

“S&P”
shall mean Standard & Poor’s Ratings Group, a division of The
McGraw-Hill Companies, Inc. or a subsidiary thereof, or any successor
thereto.

 

“SEC”
shall mean the Securities and Exchange Commission.

 

“SFAS” shall
have the meaning assigned to such term in Section 1.2(b).

 

“SPC”
shall have the meaning specified in Section 9.4(i).

 

“Specified
Currency Availability” shall mean the Multi-Currency Sublimit with
respect to the relevant Multi-Currency less the Dollar equivalent of the
aggregate principal amount of all Multi-Currency Revolving Loans denominated in
such Multi-Currency outstanding on the date of borrowing.

 

“Spot Rate”
shall mean, at any date, the Administrative Agent’s or applicable Lender’s, as
the case may be (or, for purposes of determinations in respect of the Aggregate
LC Exposure related to Letters of Credit issued in a Foreign Currency, the
Issuing Lender’s or Issuing Lenders’, as the case may be), spot buying rate for
the relevant Foreign Currency against Dollars as of approximately 11:00 a.m.
(London time) on such date for settlement on the second Business Day.

 

“Sterling”
shall mean British Pounds Sterling, the lawful currency of the United Kingdom
on the date hereof.

 

“Subsidiary”
shall mean, for any Person (the “Parent”),
any corporation, partnership or other entity of which shares of Voting Capital
Stock sufficient to elect a majority of the board of directors or other Persons
performing similar functions of such corporation, partnership or other entity
(irrespective of whether or not at the time securities or other ownership
interests of any other class or classes of such corporation, partnership or
other entity shall have or might have voting power by reason of the happening of
any contingency) are at the time directly or indirectly owned or controlled by
the Parent or one or more of its Subsidiaries or by the Parent and one or more
of its Subsidiaries.  Unless otherwise
qualified, all references to a “Subsidiary” or to “Subsidiaries” in this
Agreement shall refer to a Subsidiary or Subsidiaries of CBS.

 

“Subsidiary
Borrower” shall mean any Subsidiary of CBS (a) which is
designated as a Subsidiary Borrower by CBS pursuant to a Subsidiary Borrower
Designation, (b) which has delivered to the Administrative Agent a
Subsidiary Borrower Request and (c) whose designation as a Subsidiary
Borrower has not been terminated pursuant to Section 4.2.

 

18

 

“Subsidiary
Borrower Designation” shall mean a designation, substantially in the
form of Exhibit B-7, which may be delivered by CBS and approved by CBS and
shall be accompanied by a Subsidiary Borrower Request.

 

“Subsidiary
Borrower Obligations” shall mean, with respect to each Subsidiary
Borrower, the unpaid principal of and interest on the Loans made to such
Subsidiary Borrower (including, without limitation, interest accruing after the
maturity of the Loans made to such Subsidiary Borrower and interest accruing
after the filing of any petition in bankruptcy, or the commencement of any
insolvency, reorganization or like proceeding, relating to such Subsidiary
Borrower, whether or not a claim for post-filing or post-petition interest is
allowed in such proceeding) and all other obligations and liabilities of such
Subsidiary Borrower to the Administrative Agent or to any Lender, whether
direct or indirect, absolute or contingent, due or to become due, or now
existing or hereafter incurred, which may arise under, out of, or in connection
with, this Agreement.

 

“Subsidiary
Borrower Request” shall mean a request, substantially in the form of
Exhibit B-8, which is received by the Administrative Agent in connection
with a Subsidiary Borrower Designation.

 

“Swingline
Borrower” shall mean CBS and any Subsidiary Borrower designated as a
“Swingline Borrower” by CBS in a written notice to the Administrative Agent; provided, that,
unless otherwise agreed by the Administrative Agent, no more than one
Subsidiary Borrower may be a Swingline Borrower at any one time.  Only a Subsidiary Borrower which is a U.S.
Person may be a Swingline Borrower.

 

“Swingline
Commitment” shall mean, (i) with respect to any Swingline
Lender, the Commitment of such Lender to make ABR Swingline Loans pursuant to Section 2.6,
as designated in accordance with Section 2.6(g) and as set forth on
Schedule 1.1, and (ii) in the aggregate, $200,000,000.

 

“Swingline Lender”
shall mean any Lender designated from time to time by CBS, and approved by such
Lender, as a “Swingline Lender” pursuant to Section 2.6(g).

 

“Swingline Loans”
shall mean the collective reference to the ABR Swingline Loans and the Quoted
Swingline Loans.

 

“Swingline
Percentage” of any Swingline Lender at any time shall mean the
percentage of the aggregate Swingline Commitments represented by such Swingline
Lender’s Swingline Commitment.

 

“Syndication
Agent” shall have the meaning assigned to such term in the preamble
hereto.

 

“Target Day”
shall mean any day on which (i) Target2 is open for settlement of payments
in Euro and (ii) banks are open for dealings in deposits in Euro in the
London interbank market.

 

19

 

“Target2” means
the Trans-European Automated Real-time Gross Settlement Express Transfer
payment system which utilizes a single shared platform and which was launched
on November 19, 2007.

 

“Taxes” shall
mean all taxes, levies, imposts, duties, charges, fees, deductions, charges or
withholdings, and all liabilities with respect thereto imposed by or on behalf
of any Governmental Authority together with any interest or penalties.

 

“Test Period”
shall have the meaning assigned to such term in Section 1.2(c).

 

“Total Commitment”
shall mean at any time the aggregate amount of the Commitments in effect at
such time.

 

“Total Facility Exposure”
shall mean at any time the aggregate amount of the Facility Exposures at such
time.

 

“Total Facility
Percentage” shall mean, as to any Lender at any time, the quotient
(expressed as a percentage) of (a) such Lender’s Commitment (or (x) for
the purposes of acceleration of the Loans pursuant to clause (II) of Article VI
or (y) if the Commitments have terminated, such Lender’s Facility
Exposure) and (b) the aggregate of all Lenders’ Commitments (or (x) for
the purposes of acceleration of the Loans pursuant to clause (II) of Article VI
or (y) if the Commitments have terminated, the Total Facility Exposure).

 

“Total
Multi-Currency Sublimit” shall mean $750,000,000, as such sublimit
may be decreased from time to time in accordance with Section 2.13.

 

“Total Specified
Currency Availability” shall mean with respect to Multi-Currency
Revolving Loans, $750,000,000 (as decreased from time to time pursuant to Section 2.13)
less the Dollar equivalent of the aggregate principal amount of all
Multi-Currency Revolving Loans then outstanding.

 

“Transferee”
shall mean any assignee or participant described in Section 9.4(b) or
(f).

 

“Type”
when used in respect of any Loan, shall refer to the Rate by reference to which
interest on such Loan is determined.  For
purposes hereof, “Rate” shall
mean the Eurocurrency Rate, the Alternate Base Rate, the Quoted Swingline Rate
and the rate paid on Absolute Rate Loans.

 

“Unrefunded
Swingline Loans” shall have the meaning assigned to such term in Section 2.6(d).

 

“U.S. Person”
shall mean a citizen, national or resident of the United States of America, or
an entity organized in or under the laws of the United States of America.

 

“Voting Capital
Stock” shall mean securities or other ownership interests of a
corporation, partnership or other entity having by the terms thereof ordinary
voting power to vote 

 

20

 

in the election of the board
of directors or other Persons performing similar functions of such corporation,
partnership or other entity (without regard to the occurrence of any
contingency).

 

“Wholly Owned
Subsidiary” shall mean any Subsidiary of which all shares of Voting
Capital Stock (other than, in the case of a corporation, directors’ qualifying
shares) are owned directly or indirectly by the Parent (as defined in the
definition of “Subsidiary”).

 

“Yen”
shall mean the lawful currency of Japan.

 

SECTION 1.2.                Terms Generally.  (a)  The definitions in Section 1.1
shall apply equally to both 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, except where the context otherwise requires, be deemed to be followed by
the phrase “without limitation”.  All references herein to Articles, Sections,
Exhibits and Schedules shall be deemed references to Articles and Sections of,
and Exhibits and Schedules to, this Agreement unless the context shall
otherwise require.

 

(b)           Except as otherwise expressly provided herein, all terms
of an accounting nature shall be construed in accordance with GAAP in effect
from time to time.  The parties hereto
agree, however, that in the event that any change in accounting principles from
those used in the preparation of the financial statements referred to in Section 3.2
is, after June 30, 2009, occasioned by the promulgation of rules,
regulations, pronouncements, opinions and statements by or required by the
Financial Accounting Standards Board or Accounting Principles Board or the
American Institute of Certified Public Accountants (or successors thereto or
agencies with similar functions) and such change materially affects the
calculation of any component of the Financial Covenant or any standard or term
contained in this Agreement, the Administrative Agent and CBS shall negotiate
in good faith to amend such Financial Covenant, standards or terms found in
this Agreement (other than in respect of financial statements to be delivered
hereunder) so that, upon adoption of such changes, the criteria for evaluation
of CBS’s and its Subsidiaries’ financial condition shall be the same after such
change as if such change had not been made; provided, however,
that (i) any such amendments shall not become effective for purposes of
this Agreement unless approved by the Required Lenders and (ii) if CBS and
the Required Lenders cannot agree on such an amendment, then the calculations
under such Financial Covenant, standards or terms shall continue to be computed
without giving effect to such change in accounting principles.  Notwithstanding any other provision contained
herein, all terms of an accounting or financial nature used herein shall be
construed, and all computations of amounts and ratios referred to herein shall
be made, without giving effect to (A) any election under Statement of
Financial Accounting Standards (“SFAS”) 159/ASC
825 (or any other Financial Accounting Standard having a similar result or
effect) to value any Indebtedness or other liabilities of CBS or any Subsidiary
at “fair value”, as defined therein, (B) the net change in the carrying
value of Indebtedness relating to fair value hedges in accordance with SFAS
133/ASC 815 or (C) SFAS  166/ASC 860
or SFAS 167/ASC 810 insofar as they affect the accounting treatment of CBS’s
asset securitization programs.

 

(c)           For the purposes of calculating Consolidated EBITDA and
Consolidated Interest Expense for any period (a “Test Period”), (i) if at any time from the period (a “Pro Forma Period”) commencing on the
second day of such Test Period and ending on the date 

 

21

 

which is ten days prior to the date of
delivery of the Compliance Certificate in respect of such Test Period (or, in
the case of any pro forma calculation
made pursuant hereto in respect of a particular transaction, ending on the date
such transaction is consummated after giving effect thereto), CBS or any
Subsidiary shall have made any Material Disposition, the Consolidated EBITDA
for such Test Period shall be reduced by an amount equal to the Consolidated
EBITDA (if positive) attributable to the Property which is the subject of such
Material Disposition for such Test Period or increased by an amount equal to
the Consolidated EBITDA (if negative) attributable thereto for such Test
Period, and Consolidated Interest Expense for such Test Period shall be reduced
by an amount equal to the Consolidated Interest Expense for such Test Period
attributable to any Indebtedness of CBS or any Subsidiary repaid, repurchased,
defeased or otherwise discharged with respect to CBS and its Subsidiaries in
connection with such Material Disposition (or, if the Capital Stock of any
Subsidiary is sold, the Consolidated Interest Expense for such Test Period
directly attributable to the Indebtedness of such Subsidiary to the extent CBS
and its continuing Subsidiaries are no longer liable for such Indebtedness
after such Disposition); (ii) if during such Pro Forma Period CBS or any
Subsidiary shall have made a Material Acquisition, Consolidated EBITDA and
Consolidated Interest Expense for such Test Period shall be calculated after
giving pro forma effect thereto
(including the incurrence or assumption of any Indebtedness in connection
therewith) as if such Material Acquisition (and the incurrence or assumption of
any such Indebtedness) occurred on the first day of such Test Period; and (iii) if
during such Pro Forma Period any Person that subsequently became a Subsidiary
or was merged with or into CBS or any Subsidiary since the beginning of such
Pro Forma Period shall have entered into any disposition or acquisition
transaction that would have required an adjustment pursuant to clause (i) or
(ii) above if made by CBS or a Subsidiary during such Pro Forma Period,
Consolidated EBITDA and Consolidated Interest Expense for such Test Period
shall be calculated after giving pro forma effect
thereto as if such transaction occurred on the first day of such Test
Period.  For the purposes of this
paragraph, whenever pro forma effect
is to be given to a Material Disposition or Material Acquisition, the amount of
income or earnings relating thereto and the amount of Consolidated Interest
Expense associated with any Indebtedness discharged or incurred in connection
therewith, the pro forma calculations
shall be determined in good faith by a Financial Officer of CBS.  If any Indebtedness bears a floating rate of
interest and the incurrence or assumption thereof is being given pro forma effect, the interest expense on
such Indebtedness shall be calculated as if the rate in effect on the last day
of the relevant Pro Forma Period had been the applicable rate for the entire
relevant Test Period (taking into account any interest rate protection
agreement applicable to such Indebtedness if such interest rate protection
agreement has a remaining term in excess of 12 months).  Comparable adjustments shall be made in
connection with any determination of Consolidated EBITDA.

 

(d)           For purposes of the Financial Covenants, (i) the
Discontinued Operations shall be disregarded and (ii) the businesses
classified as Discontinued Operations shall be limited to those businesses
treated as such in the financial statements of CBS referred to in the
definition of “Discontinued Operations” and the accounting treatment of
Discontinued Operations shall be consistent with the accounting treatment
thereof in such financial statements.

 

22

 

ARTICLE
II

THE CREDITS

 

SECTION 2.1.                Commitments.  (a)  Subject to the terms and conditions
hereof and relying upon the representations and warranties herein set forth,
each Lender agrees, severally and not jointly, to make Revolving Credit Loans
to CBS or any Subsidiary Borrower, at any time and from time to time on and
after the Effective Date and until the earlier of (a) the Business Day
immediately preceding the Revolving Credit Maturity Date and (b) the
termination of the Commitment of such Lender, in an aggregate principal amount
at any time outstanding not to exceed such Lender’s Commitment, provided that
after giving effect to each Revolving Credit Loan the Total Facility Exposure
shall not exceed the Total Commitment then in effect.  Each Borrower may borrow, prepay and reborrow
Revolving Credit Loans on and after the Effective Date and prior to the
Revolving Credit Maturity Date, subject to the terms, conditions and
limitations set forth herein.

 

(b)           (i)  Notwithstanding anything to the contrary
contained in this Agreement, CBS may request from time to time that the Total
Commitment be increased by an amount not less than $50,000,000 or a whole
multiple of $25,000,000 in excess thereof, provided that
in no event shall the Total Commitment exceed $2,500,000,000.  Any such increase in the Total Commitment
shall be effected by CBS (x) requesting one or more of the Lenders to
increase their respective Commitments and/or (y) arranging for one or more
banks or financial institutions not parties hereto (each an “Other Lender”)
to become parties to and Lenders under this Agreement, provided
that, in the case of this clause (y), the Administrative Agent shall have
consented to such Other Lender, which consent shall not be unreasonably
withheld.  In no event may any Lender’s
Commitment be increased without the prior written consent of such Lender.  The Total Commitment may only be increased at
a time when no Default or Event of Default shall have occurred and be
continuing and when each of the representations and warranties made by CBS in Article III
shall be true and correct in all material respects on and as of such time
(except to the extent such representations and warranties expressly relate to
an earlier date, in which case such representations and warranties shall be
true and correct in all material respects as of such earlier date).

 

(ii)           If any Lender is
willing, in its sole and absolute discretion, to increase the amount of its
Commitment hereunder (any such Lender, an “Increasing Lender”), it shall
enter into a written agreement to that effect with CBS and the Administrative
Agent, in form and substance reasonably satisfactory to the Administrative
Agent (a “Commitment Increase Supplement”), which agreement shall
specify, among other things, the amount of the increased Commitment of such
Increasing Lender.  Upon the
effectiveness of such Increasing Lender’s increase in Commitment,
Schedule 1.1 shall, without further action, be deemed to have been amended
to reflect its increased Commitment.  Any
Other Lender which is willing to become a party hereto and a Lender hereunder
and that has been consented to by the Administrative Agent shall enter into a
written agreement with CBS and the Administrative Agent, in form and substance
reasonably satisfactory to the Administrative Agent (an “Additional Lender
Agreement”), which agreement shall specify, among other things, its
Commitment hereunder.  Upon the execution
by the Administrative Agent, CBS and such Other Lender of such Additional
Lender 

 

23

 

Agreement, such Other Lender shall become and be deemed a party hereto
and a “Lender” hereunder for all purposes hereof and shall enjoy all rights and
assume all obligations on the part of the Lenders set forth in this Agreement,
and its Commitment shall be the amount specified in its Additional Lender Agreement;
and, Schedule 1.1 shall, without further action, be deemed to have been
amended to reflect such Commitment.  Each
Other Lender which executes and delivers an Additional Lender Agreement and
becomes a party hereto and a “Lender” hereunder is hereinafter referred to as
an “Additional Lender.”

 

(iii)          Concurrently
with the execution by an Increasing Lender of a Commitment Increase Supplement
or by an Additional Lender of an Additional Lender Agreement, the Borrowers
shall make such borrowings from such Increasing Lender or Additional Lender,
and/or shall make such prepayments of outstanding Revolving Credit Loans, and
the Administrative Agent shall reallocate the LC Exposures and ABR Swingline
Exposure of the Lenders, as shall be required to cause the aggregate
outstanding principal amount of the Outstanding Revolving Extensions of Credit
of each Lender (including each such Increasing Lender and Additional Lender) to
be proportional to such Lender’s share of the Total Commitment after giving
effect to the increase thereof.

 

SECTION 2.2.                Revolving Credit
Loans; Competitive Loans.  (a)  Each
Revolving Credit Loan shall be made to the relevant Borrower by the Lenders
ratably in accordance with their respective Commitments, in accordance with the
procedures set forth in Section 2.4. 
Each Competitive Loan shall be made to the relevant Borrower by the
Lender whose Competitive Bid therefor is accepted, and in the amount so
accepted, in accordance with the procedures set forth in Section 2.3.  The Revolving Credit Loans or Competitive
Loans shall be made in minimum amounts equal to (i) in the case of
Competitive Loans, $5,000,000 or an integral multiple of $1,000,000 in excess
thereof, (ii) in the case of Eurocurrency Revolving Credit Loans
denominated in Dollars, $25,000,000 or an integral multiple of $5,000,000 in
excess thereof, (iii) in the case of Multi-Currency Revolving Loans, the
Dollar equivalent of $25,000,000 or an integral multiple of $5,000,000 in
excess thereof and (iv) in the case of ABR Revolving Credit Loans,
$5,000,000 or an integral multiple of $1,000,000 in excess thereof (or (A) in
the case of Revolving Credit Loans, an aggregate principal amount equal to the
remaining balance of the available Total Commitment or, if less, (B) with
respect to Multi-Currency Revolving Loans, the lesser of (1) the Specified
Currency Availability with respect to such currency and (2) the Total
Specified Currency Availability).

 

(b)           Each Lender shall make each Loan (other than a Swingline
Loan, as to which this Section 2.2 shall not apply, and a Multi-Currency
Revolving Loan) to be made by it on the proposed date thereof by wire transfer
of immediately available funds to the Administrative Agent in New York, New
York, not later than 12:00 noon, New York City time (or, in connection with an
ABR Loan to be made on the same day on which a notice is submitted, 12:30 p.m.,
New York City time) and the Administrative Agent shall by 3:00 p.m., New
York City time, credit the amounts so received to the general deposit account of
the relevant Borrower with the Administrative Agent.  Each Lender shall make each Multi-Currency
Revolving Loan to be made by it on the proposed date thereof by wire transfer
of immediately available funds to the Administrative Agent at its offices at J.P.
Morgan Europe Limited, 125 London Wall, London, 

 

24

 

England EC2Y 5AJ, United Kingdom, not later
than (i) in the case of any Multi-Currency Revolving Loan denominated in
Euros or Sterling, 1:00 p.m., London time, or (ii) in the case of any
Multi-Currency Revolving Loan denominated in Yen, 11:00 a.m., Tokyo time,
and the Administrative Agent shall by 3:00 p.m., New York City time,
credit the amounts so received to the general deposit account of the relevant
Borrower with the Administrative Agent.

 

SECTION 2.3.                Competitive Bid
Procedure.  (a)  In
order to request Competitive Bids, the relevant Borrower shall hand deliver or
telecopy to the Administrative Agent a duly completed Competitive Bid Request
in the form of Exhibit B-1, to be received by the Administrative Agent (i) in
the case of a Eurocurrency Competitive Loan in Dollars, not later than 10:00 a.m.,
New York City time, four Business Days before a proposed Competitive Loan, (ii) in
the case of a Eurocurrency Competitive Loan in a Foreign Currency, not later
than 10:00 a.m., New York City time, five Business Days before a proposed
Competitive Loan, (iii) in the case of an Absolute Rate Loan in Dollars,
not later than 10:00 a.m., New York City time, one Business Day before a
proposed Competitive Loan and (iv) in the case of an Absolute Rate Loan in
a Foreign Currency, not later than 10:00 a.m., New York City time, three
Business Day before a proposed Competitive Loan.  A Competitive Bid Request (A) that does
not conform substantially to the format of Exhibit B-1 may be rejected in
the Administrative Agent’s discretion (exercised in good faith), and (B) for
a Competitive Loan denominated in a Foreign Currency will be rejected by the
Administrative Agent if, after giving effect thereto, the Dollar equivalent of
the aggregate face amount of all Competitive Loans denominated in Foreign
Currencies then outstanding would exceed $150,000,000 or if the Total Facility
Exposure would exceed the Total Commitment then in effect, as determined by the
Administrative Agent, and, in each case, the Administrative Agent shall
promptly notify the relevant Borrower of such rejection by telephone, confirmed
by telecopier.  Such request shall in
each case refer to this Agreement and specify (w) whether the Competitive
Loan then being requested is to be a Eurocurrency Competitive Loan or an
Absolute Rate Loan, (x) the currency, (y) the date of such Loan
(which shall be a Business Day) and the aggregate principal amount thereof which
shall be in a minimum principal amount of the equivalent of $5,000,000 and, in
the case of a Competitive Bid for a Competitive Loan in Dollars, in an integral
multiple of $1,000,000, and (z) the Interest Period with respect thereto
(which may not end after the Revolving Credit Maturity Date).  Promptly after its receipt of a Competitive
Bid Request that is not rejected as aforesaid (and in any event by 5:00 p.m.,
New York City time, on the date of such receipt if such receipt occurs by the
time specified in the first sentence of this paragraph), the Administrative
Agent shall invite by telecopier (in the form set forth in Exhibit B-2)
the Lenders to bid, on the terms and conditions of this Agreement, to make
Competitive Loans pursuant to such Competitive Bid Request.

 

(b)           Each Lender may, in its sole discretion, make one or more
Competitive Bids to the relevant Borrower responsive to a Competitive Bid
Request.  Each Competitive Bid must be
received by the Administrative Agent by telecopier, in the form of Exhibit B-3,
(i) in the case of a Eurocurrency Competitive Loan in Dollars, not later
than 9:30 a.m., New York City time, three Business Days before a proposed
Competitive Loan, (ii) in the case of a Eurocurrency Competitive Loan in a
Foreign Currency, not later than 9:30 a.m., New York City time, four
Business Days before a proposed Competitive Loan, (iii) in the case of an
Absolute Rate Loan in Dollars, not later than 9:30 a.m., New York City
time, on the day of a proposed Competitive Loan, and (iv) in the case of
an Absolute Rate Loan in a Foreign Currency, not later than 9:30 

 

25

 

a.m., New York City time, two Business Days
before a proposed Competitive Loan. 
Multiple Competitive Bids will be accepted by the Administrative
Agent.  Competitive Bids that do not
conform substantially to the format of Exhibit B-3 may be rejected by the
Administrative Agent after conferring with, and upon the instruction of, the
relevant Borrower, and the Administrative Agent shall notify the Lender making
such nonconforming Competitive Bid of such rejection as soon as
practicable.  Each Competitive Bid shall
refer to this Agreement and specify (x) the principal amount in the
relevant currency (which shall be in a minimum principal amount of the
equivalent of $5,000,000 and, in the case of a Competitive Bid for a
Competitive Loan in Dollars, in an integral multiple of $1,000,000 and which
may equal the entire principal amount of the Competitive Loan requested by the
relevant Borrower) of the Competitive Loan or Loans that the applicable Lender
is willing to make to the relevant Borrower, (y) the Competitive Bid Rate
or Rates at which such Lender is prepared to make the Competitive Loan or Loans
and (z) the Interest Period and the last day thereof.  A Competitive Bid submitted pursuant to this
paragraph (b) shall be irrevocable (subject to the satisfaction of the
conditions to borrowing set forth in Article IV).

 

(c)           The Administrative Agent shall promptly (and in any event
by 10:15 a.m., New York City time, on the date on which such Competitive
Bids shall have been made) notify the relevant Borrower by telecopier of all
the Competitive Bids made, the Competitive Bid Rate and the principal amount in
the relevant currency of each Competitive Loan in respect of which a
Competitive Bid was made and the identity of the Lender that made each
Competitive Bid.  The Administrative
Agent shall send a copy of all Competitive Bids to the relevant Borrower for
its records as soon as practicable after completion of the bidding process set
forth in this Section 2.3.

 

(d)           The relevant Borrower may in its sole and absolute
discretion, subject only to the provisions of this paragraph (d), accept or
reject any Competitive Bid referred to in paragraph (c) above.  The relevant Borrower shall notify the
Administrative Agent by telephone, confirmed by telecopier in such form as may
be agreed upon by such Borrower and the Administrative Agent, whether and to
what extent it has decided to accept or reject any of or all the Competitive
Bids referred to in paragraph (c) above, (i) in the case of a
Eurocurrency Competitive Loan in Dollars, not later than 11:00 a.m., New
York City time, three Business Days before a proposed Competitive Loan, (ii) in
the case of a Eurocurrency Competitive Loan in a Foreign Currency, not later
than 11:00 a.m., New York City time, four Business Days before a proposed
Competitive Loan, (iii) in the case of an Absolute Rate Loan in Dollars,
not later than 11:00 a.m., New York City time, on the day of a proposed
Competitive Loan, and (iv) in the case of an Absolute Rate Loan in a
Foreign Currency, not later than 11:00 a.m., New York City time, on the
Business Day before a proposed Competitive Loan; provided,
however, that (A) the failure by such Borrower to give such
notice shall be deemed to be a rejection of all the Competitive Bids referred
to in paragraph (c) above, (B) such Borrower shall not accept a
Competitive Bid made at a particular Competitive Bid Rate if it has decided to
reject a Competitive Bid made at a lower Competitive Bid Rate, (C) the
aggregate amount of the Competitive Bids accepted by such Borrower shall not
exceed the principal amount specified in the Competitive Bid Request (but may
be less than that requested), (D) if such Borrower shall accept a
Competitive Bid or Competitive Bids made at a particular Competitive Bid Rate
but the amount of such Competitive Bid or Competitive Bids shall cause the
total amount of Competitive Bids to be accepted by it to exceed the amount
specified in the Competitive Bid

 

26

 

 

Request, then such Borrower shall accept a
portion of such Competitive Bid or Competitive Bids in an amount equal to the
amount specified in the Competitive Bid Request less the amount of all other
Competitive Bids accepted with respect to such Competitive Bid Request, which
acceptance, in the case of multiple Competitive Bids at such Competitive Bid
Rate, shall be made pro rata in
accordance with the amount of each such Competitive Bid at such Competitive Bid
Rate, and (E) except pursuant to clause (D) above no Competitive Bid
shall be accepted for a Competitive Loan unless such Competitive Loan is in a
minimum principal amount of the equivalent of $5,000,000 and, in the case of a
Competitive Bid for a Competitive Loan in Dollars, an integral multiple of $1,000,000;
provided, further, however, that if a Competitive
Loan must be in an amount less than the equivalent of $5,000,000 because of the
provisions of clause (D) above, such Competitive Loan may be for a minimum
of, in the case of a Competitive Bid for a Competitive Loan in Dollars,
$1,000,000 or any integral multiple thereof, and in calculating the pro rata allocation of acceptances of
portions of multiple Competitive Bids at a particular Competitive Bid Rate
pursuant to clause (D) above the amounts shall be rounded to integral
multiples of the equivalent of $1,000,000 (or, in the case of a Competitive Bid
for a Competitive Loan in a Foreign Currency, a multiple selected by the
Administrative Agent) in a manner which shall be in the discretion of such Borrower.  A notice given by any Borrower pursuant to
this paragraph (d) shall be irrevocable.

 

(e)                                  The
Administrative Agent shall promptly notify each bidding Lender whether or not
its Competitive Bid has been accepted (and if so, in what amount and at what
Competitive Bid Rate) by telecopy sent by the Administrative Agent, and each
successful bidder will thereupon become bound, subject to the other applicable
conditions hereof, to make the Competitive Loan in respect of which its
Competitive Bid has been accepted.

 

(f)                                    On the date the
Competitive Loan is to be made, each Lender participating therein shall (i) if
such Competitive Loan is to be made in Dollars, make available its share of
such Competitive Loan in Dollars not later than 2:00 p.m. New York City
time, in immediately available funds, in New York to the Administrative Agent
as notified by the Administrative Agent by two Business Days notice and (ii) if
such Competitive Loan is to be made in a Foreign Currency, make available its
share of such Competitive Loan in such Foreign Currency, other than Yen, not
later than 11:00 a.m. London time, and for such Competitive Loan to be
made in Yen, not later than 11:00 a.m, Tokyo time, in immediately available
funds, in London to the Administrative Agent as notified by the Administrative
Agent by one Business Day’s notice.

 

(g)                                 If the Lender
which is the Administrative Agent shall elect to submit a Competitive Bid in
its capacity as a Lender, it shall submit such Competitive Bid directly to the
relevant Borrower at least one quarter of an hour earlier than the latest time
at which the other Lenders are required to submit their Competitive Bids to the
Administrative Agent pursuant to paragraph (b) above.

 

(h)                                 All notices
required by this Section 2.3 shall be given in accordance with Section 9.1.

 

(i)                                     No Borrower
shall have the right to prepay any Competitive Loan without the consent of the
Lender or Lenders making such Competitive Loan.

 

27

 

SECTION 2.4.                                               Revolving
Credit Borrowing Procedure.  In order to request a Revolving Credit Loan,
the relevant Borrower shall hand deliver or telecopy to the Administrative
Agent a Revolving Credit Borrowing Request in the form of Exhibit B-4 (a) in
the case of a Eurocurrency Revolving Credit Loan denominated in Dollars, not
later than 11:00 a.m., New York City time, three Business Days before a
proposed borrowing, (b) in the case of a Multi-Currency Revolving Loan,
8:00 a.m., New York City time, three Business Days before a proposed
borrowing and (c) in the case of an ABR Revolving Credit Loan, not later
than 11:00 a.m., New York City time, on the day of a proposed
borrowing.  Such notice shall be
irrevocable and shall in each case specify (i) whether the Revolving
Credit Loan then being requested is to be a Eurocurrency Revolving Credit Loan
or an ABR Revolving Credit Loan, (ii) the date of such Revolving Credit
Loan (which shall be a Business Day) and the amount thereof; (iii) in the
case of a Eurocurrency Revolving Credit Loan, the Interest Period with respect
thereto; and (iv) in the case of a Multi-Currency Revolving Loan, the
currency in which such Loan shall be denominated.  The Administrative Agent shall promptly
advise the Lenders of any notice given pursuant to this Section 2.4 and of
each Lender’s portion of the requested Loan.

 

SECTION 2.5.                                               Repayment
of Loans.  Each
Borrower shall repay all outstanding Revolving Credit Loans and ABR Swingline
Loans made to it, in each case on the Revolving Credit Maturity Date (or such earlier
date on which the Commitments shall terminate in accordance herewith).  Each Borrower shall repay Quoted Swingline
Loans and Competitive Loans made to it, in each case on the Maturity Date
applicable thereto.  Each Loan shall bear
interest from and including the date thereof on the outstanding principal
balance thereof as set forth in Section 2.10.  For the avoidance of doubt, subject to Article VIII,
each Borrower’s obligations hereunder are and shall be the several obligations
of such Borrower, and shall not be the joint and several obligations of the
Borrowers.

 

SECTION 2.6.                                               Swingline
Loans.  (a)  Subject to the
terms and conditions hereof and relying upon the representations and warranties
herein set forth, each Swingline Lender agrees, severally and not jointly, at
any time and from time to time on and after the Effective Date and until the
earlier of the Business Day immediately preceding the Revolving Credit Maturity
Date and the termination of the Swingline Commitment of such Swingline Lender, (i) to
make available to any Swingline Borrower Swingline Loans (“Quoted Swingline Loans”) on the basis of
quoted interest rates (each, a “Quoted
Swingline Rate”) furnished by such Swingline Lender from time to
time in its discretion to such Swingline Borrower (through the Administrative
Agent) and accepted by such Swingline Borrower in its discretion and (ii) to
make Swingline Loans (“ABR Swingline Loans”)
to any Swingline Borrower bearing interest at a rate equal to the Alternate
Base Rate in an aggregate principal amount (in the case of this clause (ii))
not to exceed such Swingline Lender’s Swingline Commitment; provided, that after giving effect to each
Swingline Loan, the Total Facility Exposure shall not exceed the Total
Commitment then in effect.  The aggregate
outstanding principal amount of the Quoted Swingline Loans of any Swingline
Lender, when added to the aggregate outstanding principal amount of the ABR
Swingline Loans of such Swingline Lender, may exceed such Swingline Lender’s
Swingline Commitment; provided,  that in no event shall the aggregate
outstanding principal amount of the Swingline Loans exceed the aggregate
Swingline Commitments then in effect. 
Each Quoted Swingline Loan shall be made only by the Swingline Lender furnishing
the relevant Quoted Swingline Rate.  Each
ABR Swingline Loan shall be made by the Swingline Lenders ratably in accordance
with their respective Swingline Percentages. 
The Swingline 

 

28

 

Loans
shall be made in a minimum aggregate principal amount of $5,000,000 or an
integral multiple of $1,000,000 in excess thereof (or an aggregate principal
amount equal to the remaining balance of the available Swingline
Commitments).  Each Swingline Lender
shall make the portion of each Swingline Loan to be made by it available to any
Swingline Borrower by means of a credit to the general deposit account of such
Swingline Borrower with the Administrative Agent or, with notice to the
Administrative Agent, a wire transfer, at the expense of such Swingline
Borrower, to an account designated in writing by such Swingline Borrower, in
each case by 3:30 p.m., New York City time, on the date such Swingline
Loan is requested to be made pursuant to paragraph (b) below, in
immediately available funds.  Each
Swingline Borrower may borrow, prepay and reborrow Swingline Loans on or after
the Effective Date and prior to the Revolving Credit Maturity Date (or such
earlier date on which the Commitments shall terminate in accordance herewith)
on the terms and subject to the conditions and limitations set forth herein.

 

(b)                                 The relevant
Swingline Borrower shall give the Administrative Agent telephonic, written or
telecopy notice substantially in the form of Exhibit B-5 (in the case of
telephonic notice, such notice shall be promptly confirmed by telecopy) no
later than 2:30 p.m., New York City time (or, in the case of a proposed
Quoted Swingline Loan, 12:00 noon, New York City time), on the day of a
proposed Swingline Loan.  Such notice
shall be delivered on a Business Day, shall be irrevocable (subject, in the
case of Quoted Swingline Loans, to receipt by the relevant Swingline Borrower
of Quoted Swingline Rates acceptable to it) and shall refer to this Agreement
and shall specify the requested date (which shall be a Business Day) and amount
of such Swingline Loan.  The
Administrative Agent shall promptly advise the Swingline Lenders of any notice
received from any Swingline Borrower pursuant to this paragraph (b).  In the event that a Swingline Borrower accepts
a Quoted Swingline Rate in respect of a proposed Quoted Swingline Loan, it
shall notify the Administrative Agent (which shall in turn notify the relevant
Swingline Lender) of such acceptance no later than 2:30 p.m., New York
City time, on the relevant borrowing date.

 

(c)                                  In the event
that any ABR Swingline Loan shall be outstanding for more than five Business
Days, the Administrative Agent shall, on behalf of the relevant Swingline
Borrower (which hereby irrevocably directs and authorizes the Administrative
Agent to act on its behalf), request each Lender, including the Swingline
Lenders, to make an ABR Revolving Credit Loan in an amount equal to such Lender’s
Revolving Credit Percentage of the principal amount of such ABR Swingline
Loan.  Unless an event described in Article VI,
paragraph (f) or (g), has occurred and is continuing, each Lender will
make the proceeds of its Revolving Credit Loan available to the Administrative
Agent for the account of the Swingline Lenders at the office of the Administrative
Agent prior to 12:00 noon, New York City time, in funds immediately available
on the Business Day next succeeding the date such notice is given.  The proceeds of such Revolving Credit Loans
shall be immediately applied to repay the ABR Swingline Loans.

 

(d)                                 A Swingline
Lender that has made an ABR Swingline Loan to a Borrower may at any time and
for any reason, so long as Revolving Credit Loans have not been made pursuant
to Section 2.6(c) to repay such ABR Swingline Loan as required by
said Section, by written notice given to the Administrative Agent not later
than 12:00 noon New York City time on any Business Day, require the Lenders to
acquire participations on such Business Day in all or a portion of such
unrefunded ABR Swingline Loans (the “Unrefunded
Swingline Loans”), and 

 

29

 

each Lender severally, unconditionally and
irrevocably agrees that it shall purchase an undivided participating interest
in such ABR Swingline Loan in an amount equal to the amount of the Revolving
Credit Loan which otherwise would have been made by such Lender pursuant to Section 2.6(c),
which purchase shall be funded by the time such Revolving Credit Loan would
have been required to be made pursuant to Section 2.6(c).  In the event that the Lenders purchase
undivided participating interests pursuant to the first sentence of this
paragraph (d), each Lender shall immediately transfer to the Administrative
Agent, for the account of such Swingline Lender, in immediately available
funds, the amount of its participation. 
Any Lender holding a participation in an Unrefunded Swingline Loan may
exercise any and all rights of banker’s lien, setoff or counterclaim with
respect to any and all moneys owing by the relevant Swingline Borrower to such
Lender by reason thereof as fully as if such Lender had made a Loan directly to
such Swingline Borrower in the amount of such participation.

 

(e)                                  Whenever, at
any time after any Swingline Lender has received from any Lender such Lender’s
participating interest in an ABR Swingline Loan, such Swingline Lender receives
any payment on account thereof, such Swingline Lender will promptly distribute
to such Lender its participating interest in such amount (appropriately
adjusted, in the case of interest payments, to reflect the period of time
during which such Lender’s participating interest was outstanding and funded); provided, however, that in the event that such payment
received by such Swingline Lender is required to be returned, such Lender will
return to such Swingline Lender any portion thereof previously distributed by
such Swingline Lender to it.

 

(f)                                    Notwithstanding
anything to the contrary in this Agreement, each Lender’s obligation to make
the Revolving Credit Loans referred to in Section 2.6(c) and to
purchase and fund participating interests pursuant to Section 2.6(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 which such Lender or any Swingline Borrower may have
against any Swingline Lender, any Swingline Borrower or any other Person for
any reason whatsoever; (ii) the occurrence or continuance of a Default or
an Event of Default (other than an Event of Default described in Article VI,
paragraph (f) or (g), in the case of each Lender’s obligation to make
Revolving Credit Loans pursuant to Section 2.6(c)) or the failure to
satisfy any of the conditions specified in Article IV; (iii) any
adverse change in the condition (financial or otherwise) of CBS or any of its
Subsidiaries; (iv) any breach of this Agreement by any Borrower or any
Lender; or (v) any other circumstance, happening or event whatsoever,
whether or not similar to any of the foregoing.

 

(g)                                 Upon written or
telecopy notice to the Swingline Lenders and to the Administrative Agent, CBS
may at any time terminate, from time to time in part reduce, or from time to
time (with the approval of the relevant Swingline Lender) increase, the
Swingline Commitment of any Swingline Lender. 
At any time when there shall be fewer than ten Swingline Lenders, CBS
may appoint from among the Lenders a new Swingline Lender, subject to the prior
consent of such new Swingline Lender and prior notice to the Administrative
Agent, so long as at no time shall there be more than ten Swingline
Lenders.  Notwithstanding anything to the
contrary in this Agreement, (i) if any ABR Swingline Loans shall be
outstanding at the time of any termination, reduction, increase or appointment
pursuant to the preceding two sentences, the Swingline Borrowers shall on the
date thereof prepay or borrow ABR Swingline Loans to the extent necessary to
ensure that at all times the outstanding ABR Swingline Loans 

 

30

 

held by the Swingline Lenders shall be pro rata according to the respective
Swingline Commitments of the Swingline Lenders and (ii) in no event may
the aggregate Swingline Commitments exceed $200,000,000.  On the date of any termination or reduction
of the Swingline Commitments pursuant to this paragraph (g), the Swingline
Borrowers shall pay or prepay so much of the Swingline Loans as shall be
necessary in order that, after giving effect to such termination or reduction, (i) the
aggregate outstanding principal amount of the ABR Swingline Loans of any
Swingline Lender will not exceed the Swingline Commitment of such Swingline
Lender and (ii) the aggregate outstanding principal amount of all
Swingline Loans will not exceed the aggregate Swingline Commitments.

 

(h)                                 Each Swingline
Borrower may prepay any Swingline Loan in whole or in part at any time without
premium or penalty; provided, that such Swingline Borrower shall
have given the Administrative Agent written or telecopy notice (or telephone
notice promptly confirmed in writing or by telecopy) of such prepayment not
later than 10:30 a.m., New York City time, on the Business Day designated
by such Swingline Borrower for such prepayment; and provided, further, that each partial payment shall be in an
amount that is an integral multiple of $1,000,000.  Each notice of prepayment under this
paragraph (h) shall specify the prepayment date and the principal amount
of each Swingline Loan (or portion thereof) to be prepaid, shall be irrevocable
and shall commit such Swingline Borrower to prepay such Swingline Loan (or
portion thereof) in the amount stated therein on the date stated therein.  All prepayments under this paragraph (h) shall
be accompanied by accrued interest on the principal amount being prepaid to the
date of payment.  Each payment of
principal of or interest on ABR Swingline Loans shall be allocated, as between
the Swingline Lenders, pro rata in
accordance with their respective Swingline Percentages.

 

SECTION 2.7.                                               Letters
of Credit.  (a)  Subject
to the terms and conditions hereof and relying upon the representations and
warranties herein set forth, each Issuing Lender agrees, at any time and from
time to time on or after the Effective Date until the earlier of (i) the
fifth Business Day preceding the Revolving Credit Maturity Date and (ii) the
termination of the Commitments in accordance with the terms hereof, to issue
and deliver or to extend the expiry of Letters of Credit for the account of any
Borrower in an aggregate outstanding undrawn amount which does not exceed the
maximum amount specified in the applicable Issuing Lender Agreement; provided, that
(A) in no event shall the Aggregate LC Exposure exceed the Letter of
Credit Sublimit at any time and (B) after giving effect to each issuance
of a Letter of Credit, the Total Facility Exposure shall not exceed the Total
Commitment then in effect.  Each Letter
of Credit (i) shall be in a form approved in writing by the applicable
Borrower and the applicable Issuing Lender and (ii) shall permit drawings
upon the presentation of such documents as shall be specified by such Borrower
in the applicable notice delivered pursuant to paragraph (c) below.  The Lenders agree that, subject to compliance
with the conditions precedent set forth in Section 4.3, any Designated
Letter of Credit may be designated as a Letter of Credit hereunder from time to
time on or after the Effective Date pursuant to the procedures specified in the
definition of “Designated Letters of Credit”.

 

(b)                                 Each Letter of
Credit shall by its terms expire not later than the fifth Business Day
preceding the Revolving Credit Maturity Date. 
Any Letter of Credit may provide for the renewal thereof for additional
periods (which shall in no event extend beyond the date referred to in the preceding
sentence).  Each Letter of Credit shall
by its terms provide for 

 

31

 

payment of drawings in Dollars or in a
Foreign Currency; provided, that a Letter of Credit denominated in a Foreign Currency may not
be issued if, after giving effect thereto, the Dollar equivalent (calculated on
the basis of the applicable Foreign Exchange Rate) of the aggregate face amount
of all Letters of Credit denominated in Foreign Currencies then outstanding
would exceed $150,000,000, as determined by the Administrative Agent acting in
good faith.

 

(c)                                  The applicable
Borrower may request the issuance of Letters of Credit in a form reasonably
acceptable to the applicable Issuing Lender and shall give the applicable
Issuing Lender and the Administrative Agent written or telecopy notice not
later than 10:00 a.m., New York City time, three Business Days (or such
shorter period as shall be acceptable to such Issuing Lender) prior to any
proposed issuance of a Letter of Credit. 
Each such notice shall refer to this Agreement and shall specify (i) the
date on which such Letter of Credit is to be issued (which shall be a Business
Day) and the face amount of such Letter of Credit, (ii) the name and
address of the beneficiary, (iii) whether such Letter of Credit is a
Financial Letter of Credit or a Non-Financial Letter of Credit (subject to
confirmation of such status by the Administrative Agent), (iv) whether
such Letter of Credit shall permit a single drawing or multiple drawings, (v) the
form of the documents required to be presented at the time of any drawing
(together with the exact wording of such documents or copies thereof), (vi) the
expiry date of such Letter of Credit (which shall conform to the provisions of
paragraph (b) above) and (vii) if such Letter of Credit is to be in a
Foreign Currency, the relevant Foreign Currency.  Such Issuing Lender shall promptly give
notice to the Administrative Agent of the issuance (or non-issuance, as the
case may be) of such Letter of Credit.  The
Administrative Agent shall give to each Lender prompt written or telecopy
advice of the issuance of any Letter of Credit. 
Each determination by the Administrative Agent as to whether or not a
Letter of Credit constitutes a Financial Letter of Credit shall be conclusive
and binding upon the applicable Borrower and the Lenders.  In the event of any inconsistency between the
terms and conditions of this Agreement and the terms and conditions of any form
of letter of credit application or other agreement submitted by the applicable
Borrower to, or entered into by the applicable borrower with, the applicable
Issuing Lender relating to any Letter of Credit, the terms and conditions of
this Agreement shall control.

 

(d)                                 By the issuance
of a Letter of Credit and without any further action on the part of the
applicable Issuing Lender or the Lenders in respect thereof, the applicable
Issuing Lender hereby grants to each Lender, and each Lender hereby acquires
from such Issuing Lender, a participation in such Letter of Credit equal to
such Lender’s Revolving Credit Percentage at the time of any drawing thereunder
of the stated amount of such Letter of Credit, effective upon the issuance of
such Letter of Credit.  In addition, the
applicable Issuing Lender hereby grants to each Lender, and each Lender hereby
acquires from such Issuing Lender, a participation in each Designated Letter of
Credit equal to such Lender’s Revolving Credit Percentage at the time of any
drawing thereunder of the stated amount of such Designated Letter of Credit,
effective on the date such Designated Letter of Credit is designated as a
Letter of Credit hereunder.  In
consideration and in furtherance of the foregoing, each Lender hereby
absolutely and unconditionally agrees to pay to the Administrative Agent, for
the account of each Issuing Lender, in accordance with paragraph (f) below,
such Lender’s Revolving Credit Percentage of each unreimbursed LC Disbursement
made by such Issuing Lender; provided, however,
that the Lenders shall not be obligated to make any such payment with respect
to any payment or disbursement made under any Letter of Credit to the extent
resulting from the gross negligence or willful misconduct of such Issuing
Lender.

 

32

 

(e)                                  Each Lender
acknowledges and agrees that its acquisition of participations pursuant to
paragraph (d) above in respect of Letters of Credit 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 which such Lender or the applicable Borrower may have against any Issuing
Lender, any Borrower or any other Person, for any reason whatsoever; (ii) the
occurrence or continuance of a Default or an Event of Default or the failure to
satisfy any of the conditions specified in Article IV; (iii) any
adverse change in the condition (financial or otherwise) of the applicable
Borrower; (iv) any breach of this Agreement by any Borrower or any Lender;
or (v) any other circumstance, happening or event whatsoever, whether or
not similar to any of the foregoing.

 

(f)                                    On the date on
which it shall have ascertained that any documents presented under a Letter of
Credit appear to be in conformity with the terms and conditions of such Letter
of Credit, the applicable Issuing Lender shall give written or telecopy notice
to the applicable Borrower and the Administrative Agent of the amount of the
drawing and the date on which payment thereon has been or will be made.  If the applicable Issuing Lender shall not
have received from the applicable Borrower the payment required pursuant to
paragraph (g) below by 12:00 noon, New York City time, two Business Days
after the date on which payment of a draft presented under any Letter of Credit
has been made, such Issuing Lender shall so notify the Administrative Agent,
which shall in turn promptly notify each Lender, specifying in the notice to
each Lender such Lender’s Revolving Credit Percentage of such LC
Disbursement.  Each Lender shall pay to
the Administrative Agent, not later than 2:00 p.m., New York City time, on
such second Business Day, such Lender’s Revolving Credit Percentage of such LC
Disbursement (which obligation shall be expressed in Dollars only), which the Administrative
Agent shall promptly pay to the applicable Issuing Lender (with interest after
such second Business Day at the same rate as applies to such LC
Disbursement).  The Administrative Agent
will promptly remit to each Lender such Lender’s Revolving Credit Percentage of
any amounts subsequently received by the Administrative Agent from the
applicable Borrower in respect of such LC Disbursement; provided, that (i) amounts so received for
the account of any Lender prior to payment by such Lender of amounts required
to be paid by it hereunder in respect of any LC Disbursement and (ii) amounts
representing interest at the rate provided in paragraph (g) below on any
LC Disbursement for the period prior to the payment by such Lender of such
amounts shall in each case be remitted to the applicable Issuing Lender.

 

(g)                                 If an Issuing
Lender shall pay any draft presented under a Letter of Credit, the applicable
Borrower shall pay to such Issuing Lender an amount equal to the amount of such
draft before 12:00 noon, New York City time, on the second Business Day
immediately following the date of payment of such draft, together with interest
(if any) on such amount at a rate per annum equal to the interest rate in
effect for ABR Loans (or, in the case of Foreign Currency denominated Letters
of Credit, the rate which would reasonably and customarily be charged by such
Issuing Lender on outstanding loans denominated in the relevant Foreign
Currency) from (and including) the date of payment of such draft to (but excluding)
the date on which such Borrower shall have repaid, or the Lenders shall have
refunded, such draft in full (which interest shall be payable on such second
Business Day and from time to time thereafter on demand until such Borrower
shall have repaid, or the Lenders shall have refunded, such draft in
full).  In the event that such drawing
shall be refunded by the Lenders as provided in Section 2.7(f), the
applicable Borrower shall pay to the Administrative Agent, for the account of
the 

 

33

 

Lenders, quarterly on the last day of each
March, June, September and December, interest on the amount so refunded at
a rate per annum equal to the interest rate in effect for ABR Loans from (and
including) the date of such refunding to (but excluding) the date on which the
amount so refunded by the Lenders shall have been paid in full in Dollars by
such Borrower.  Each payment made to an
Issuing Lender by the applicable Borrower pursuant to this paragraph shall be
made at such Issuing Lender’s address for notices specified herein in lawful
money of (x) the United States of America (in the case of payments made on
Dollar-denominated Letters of Credit) or (y) the applicable foreign
jurisdiction (in the case of payments on Foreign Currency-denominated Letters
of Credit) and in immediately available funds, and such Issuing Lender shall
promptly notify the Administrative Agent of any such payment.  The obligation of the applicable Borrower to
pay the amounts referred to above in this paragraph (g) (and the
obligations of the Lenders under paragraphs (d) and (f) above) shall
be absolute, unconditional and irrevocable and shall be satisfied strictly in
accordance with their terms irrespective of:

 

(i)                                     any lack of
validity or enforceability of any Letter of Credit or any Issuing Lender
Agreement or of the obligations of any Borrower under this Agreement or any
Issuing Lender Agreement;

 

(ii)                                  the existence
of any claim, setoff, defense or other right which any Borrower or any other Person
may at any time have against the beneficiary under any Letter of Credit, the
Agents, any Issuing Lender or any Lender (other than the defense of payment in
accordance with the terms of this Agreement or a defense based on the gross
negligence or willful misconduct of the applicable Issuing Lender) or any other
Person in connection with this Agreement or any other 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; provided, that
payment by the applicable Issuing Lender under such Letter of Credit against
presentation of such draft or document shall not have constituted gross
negligence or willful misconduct;

 

(iv)                              payment by the
applicable Issuing Lender under a Letter of Credit against presentation of a
draft or other document which does not comply in any immaterial respect with
the terms of such Letter of Credit; provided,
that such payment shall not have constituted gross negligence or
willful misconduct; or

 

(v)                                 any other
circumstance or event whatsoever, whether or not similar to any of the
foregoing; provided, that such
other circumstance or event shall not have been the result of gross negligence
or willful misconduct of the applicable Issuing Lender.

 

It is understood that in making any payment under a
Letter of Credit (x) such Issuing Lender’s exclusive reliance on the
documents presented to it under such Letter of Credit as to any and all matters
set forth therein, including reliance on the amount of any draft presented
under such Letter of Credit, whether or not the amount due to the beneficiary
thereof equals the amount of such draft and whether or not any document
presented pursuant to such Letter of Credit proves to be forged, fraudulent or
invalid in any respect, if such document on its face appears to be in order,
and whether or not any other statement or any other document presented 

 

34

 

pursuant to such Letter of
Credit proves to be forged or invalid or any statement therein proves to be
inaccurate or untrue in any respect whatsoever, and (y) any noncompliance
in any immaterial respect of the documents presented under a Letter of Credit with
the terms thereof shall, in either case, not, in and of itself, be deemed
willful misconduct or gross negligence of such Issuing Lender.

 

(h)                                 (i)  Notwithstanding
anything to the contrary contained in this Agreement, for purposes of
calculating any LC Fee payable in respect of any Business Day, the
Administrative Agent shall convert the amount available to be drawn under any
Letter of Credit denominated in a Foreign Currency into an amount of Dollars
based upon the relevant Foreign Exchange Rate in effect for such day.  If on any date the Administrative Agent shall
notify the applicable Borrower that, by virtue of any change in the Foreign
Exchange Rate of any Foreign Currency in which a Letter of Credit is denominated,
the Total Facility Exposure shall exceed the Total Commitment then in effect,
then, within three Business Days after the date of such notice, such Borrower
shall prepay the Revolving Credit Loans and/or the Swingline Loans to the
extent necessary to eliminate such excess. 
Each Issuing Lender which has issued a Letter of Credit denominated in a
Foreign Currency agrees to notify the Administrative Agent of the average daily
outstanding amount thereof for any period in respect of which LC Fees are
payable and, upon request by the Administrative Agent, for any other date or
period.  For all purposes of this
Agreement (except as otherwise set forth in Section 2.22), determinations
by the Administrative Agent of the Dollar equivalent of any amount expressed in
a Foreign Currency shall be made on the basis of Foreign Exchange Rates reset
monthly (or on such other periodic basis as shall be selected by the
Administrative Agent in its sole discretion) and shall in each case be
conclusive absent manifest error.

 

(ii)                                  Notwithstanding
anything to the contrary contained in this Section 2.7, prior to demanding
any reimbursement from the Lenders pursuant to Section 2.7(f) in
respect of any Letter of Credit denominated in a Foreign Currency, the relevant
Issuing Lender shall convert the obligation of the applicable Borrower under Section 2.7(g) to
reimburse such Issuing Lender in such Foreign Currency into an obligation to
reimburse such Issuing Lender (and, in turn, the Lenders) in Dollars.  The amount of any such converted obligation
shall be computed based upon the relevant Foreign Exchange Rate (as quoted by
the Administrative Agent to such Issuing Lender) in effect for the day on which
such conversion occurs.

 

(iii)                               Each Issuing
Lender shall promptly notify the Administrative Agent of the expiration or cancellation
of a Letter of Credit issued by it.

 

SECTION 2.8.                                               Conversion
and Continuation Options.  (a)  The
relevant Borrower may elect from time to time to convert Eurocurrency Revolving
Credit Loans denominated in Dollars (or, subject to Section 2.10(f), a
portion thereof) to ABR Revolving Credit Loans on the last day of an Interest
Period with respect thereto by giving the Administrative Agent prior
irrevocable notice of such election.  The
relevant Borrower may elect from time to time to convert ABR Revolving Credit
Loans (subject to Section 2.10(f)) to Eurocurrency Revolving Credit Loans
denominated in Dollars by giving the Administrative Agent at least three
Business Days’ prior irrevocable notice of such election.  Any such notice of conversion to Eurocurrency
Revolving Credit Loans shall specify the length of the initial Interest 

 

35

 

Period
therefor.  Upon receipt of any such
notice the Administrative Agent shall promptly notify each Lender thereof.  All or any part of outstanding Eurocurrency
Revolving Credit Loans and ABR Revolving Credit Loans may be converted as
provided herein; provided, that no Revolving Credit Loan may be converted into a
Eurocurrency Revolving Credit Loan when any Event of Default has occurred and
is continuing and the Administrative Agent has or the Required Lenders have
determined in its or their sole discretion not to permit such a conversion.

 

(b)                                 Any
Eurocurrency Revolving Credit Loans (or, subject to Section 2.10(f), a
portion thereof) may be continued as such upon the expiration of the then
current Interest Period with respect thereto by the relevant Borrower giving
irrevocable notice to the Administrative Agent, not less than three Business
Days prior to the last day of the then current Interest Period with respect
thereto, of the length of the next Interest Period to be applicable to such
Revolving Credit Loans; provided, that no Eurocurrency Revolving Credit
Loan may be continued as such when any Event of Default has occurred and is
continuing and the Administrative Agent has or the Required Lenders have
determined in its or their sole discretion not to permit such a continuation;
and provided, further, that if
the relevant Borrower shall fail to give any required notice as described above
in this paragraph or if such continuation is not permitted pursuant to the
preceding proviso such Eurocurrency Revolving Credit Loans shall be
automatically converted to ABR Revolving Credit Loans on the last day of such
then expiring Interest Period (in the case of Multi-Currency Revolving Loans,
such Loans shall be converted to Dollars at the Foreign Exchange Rate on such
date before being converted to ABR Revolving Credit Loans).  Upon receipt of any notice from a Borrower
pursuant to this Section 2.8(b), the Administrative Agent shall promptly
notify each Lender thereof.  The
Administrative Agent shall promptly notify the applicable Borrower upon the
determination in accordance with this Section 2.8(b), by it or the
Required Lenders, not to permit such a continuation.

 

SECTION 2.9.                                               Fees.  (a)  CBS agrees to pay to the
Administrative Agent for the account of each Lender a Commitment Fee for the
period from and including the Effective Date to the Revolving Credit Maturity
Date (or such earlier date on which the Commitments shall terminate in
accordance herewith), computed at a per annum rate equal to the Applicable
Commitment Fee Rate on such Lender’s average daily unused Commitment.  All Commitment Fees shall be computed on the
basis of the actual number of days elapsed in a year of 360 days and shall be
payable quarterly in arrears on the last day of each March, June, September and
December (commencing on the first of such dates to occur after the
Effective Date), on the Revolving Credit Maturity Date or such earlier date on
which the Commitments shall be terminated. 
The unused Commitment of a Lender, for purposes of determining its
Commitment Fee, shall be determined without regard to whether there are any
Swingline Loans or Competitive Loans outstanding, from such Lender or any other
Lender.

 

(b)                                 CBS agrees to
pay each Lender, through the Administrative Agent, on the 15th day of each April, July, October and January and
on the Revolving Credit Maturity Date or the date on which the Commitment of
such Lender shall be terminated as provided herein and all Letters of Credit
issued hereunder shall have expired, a letter of credit fee (an “LC Fee”) computed at a per annum rate
equal to the Applicable LC Fee Rate on such Lender’s Revolving Credit
Percentage of the average daily undrawn amount of the Financial Letters of
Credit or Non-Financial Letters of Credit, as the case may be, outstanding
during the preceding fiscal quarter (or shorter period commencing with the
Effective Date or ending with the Revolving

 

36

 

Credit Maturity Date or the date on which the
Commitment of such Lender shall have been terminated and all Letters of Credit
issued hereunder shall have expired). 
All LC Fees shall be computed on the basis of the actual number of days
elapsed in a year of 360 days.

 

(c)                                  CBS agrees to
pay to the Administrative Agent, for its own account, the administrative agent’s
fees (“Administrative Agent’s Fees”)
provided for in the Administrative Agent Fee Letter at the times provided
therein.

 

(d)                                 Each Borrower
agrees to pay to each Issuing Lender, through the Administrative Agent, for its
own account, the applicable Issuing Lender Fees, including, without limitation,
a fronting fee at a rate to be determined by the relevant Borrower and the
relevant Issuing Lender with respect to each Letter of Credit issued by such
Issuing Lender payable on the 15th day of each
April, July, October and January to such Issuing Lender for the
period from and including the date of issuance of such Letter of Credit to, but
not including, the termination date of such Letter of Credit.

 

(e)                                  All Fees shall
be paid on the dates due, in immediately available funds, to the Administrative
Agent for distribution, if and as appropriate, among the relevant Lenders or to
the Issuing Lenders.  Once paid, none of
the Fees shall be refundable under any circumstances (other than corrections of
errors in payment).

 

SECTION 2.10.                                         Interest
on Loans; Eurocurrency Tranches; Etc.  (a)  Subject to the provisions of Section 2.11,
Eurocurrency Loans shall bear interest (computed on the basis of the actual
number of days elapsed over a year of 360 days) at a rate per annum equal to (i) in
the case of each Eurocurrency Revolving Credit Loan, the Eurocurrency Rate for
the Interest Period in effect for such Loan plus the Applicable Margin and (ii) in
the case of each Eurocurrency Competitive Loan, the Eurocurrency Rate for the
Interest Period in effect for such Loan plus or minus (as the case may be) the
Margin offered by the Lender making such Loan and accepted by the relevant
Borrower pursuant to Section 2.3. 
The Eurocurrency Rate for each Interest Period shall be determined by
the Administrative Agent, and such determination shall be conclusive absent
manifest error.  The Administrative Agent
shall promptly advise the relevant Borrower and each Lender of such
determination.

 

(b)                                 Subject to the
provisions of Section 2.11, ABR Loans shall bear interest (computed on the
basis of the actual number of days elapsed over a year of 365 or 366 days, as
the case may be, when determined by reference to the Prime Rate and over a year
of 360 days at all other times) at a rate per annum equal to the Alternate Base
Rate plus the Applicable Margin.  The
Alternate Base Rate shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.

 

(c)                                  Subject to the
provisions of Section 2.11, Quoted Swingline Loans shall bear interest
(computed on the basis of the actual number of days elapsed over a year of 360
days) at a rate per annum equal to the relevant Quoted Swingline Rate.

 

(d)                                 Subject to the
provisions of Section 2.11, each Absolute Rate Loan shall bear interest at
a rate per annum (computed on the basis of the actual number of days elapsed 

 

37

 

over a year of 360 days) equal to the fixed
rate of interest offered by the Lender making such Loan and accepted by the
relevant Borrower pursuant to Section 2.3.

 

(e)                                  Interest on
each Loan shall be payable on each applicable Interest Payment Date.

 

(f)                                    Notwithstanding
anything to the contrary in this Agreement, all borrowings, conversions,
continuations, repayments and prepayments of Eurocurrency Revolving Credit
Loans hereunder and all selections of Interest Periods hereunder in respect of
Eurocurrency Revolving Credit Loans shall be in such amounts and shall be made
pursuant to such elections so that, after giving effect thereto, the aggregate
principal amount of the Eurocurrency Revolving Credit Loans comprising each
Eurocurrency Tranche shall be equal to $25,000,000 (or the Dollar equivalent
thereof) or a whole multiple of $5,000,000 (or the Dollar equivalent thereof)
in excess thereof.  Unless otherwise
agreed by the Administrative Agent, in no event shall there be more than 25
Eurocurrency Tranches outstanding at any time.

 

(g)                                 If no election
as to the Type of Revolving Credit Loan is specified in any notice of borrowing
with respect thereto, then the requested Loan shall be an ABR Loan, unless such
request is for a Revolving Credit Loan denominated in a Multi-Currency.  If no Interest Period with respect to a
Eurocurrency Revolving Credit Loan is specified in any notice of borrowing,
conversion or continuation, then the relevant Borrower shall be deemed to have
selected an Interest Period of one month’s duration.  The Interest Period with respect to a
Eurocurrency Competitive Loan shall in no case be less than one month’s
duration.

 

SECTION 2.11.                                         Default
Interest.  (a)  If
all or a portion of the principal amount of any Loan shall not be paid when due
(whether at the stated maturity, by acceleration or otherwise), all outstanding
Loans (whether or not overdue) shall bear interest at a rate per annum which is
equal to the rate that would otherwise be applicable thereto pursuant to the
provisions of Section 2.10 plus 2% and (b) if all or a portion of any
LC Disbursement, any interest payable on any Loan or LC Disbursement or any Fee
or other amount payable hereunder shall not be paid when due (whether at the
stated maturity, by acceleration or otherwise), such overdue amount shall bear
interest at a rate per annum equal to the rate otherwise applicable to ABR
Loans pursuant to Section 2.10(b) plus 2%, in each case, with respect
to clauses (a) and (b) above, from the date of such non-payment until
such amount is paid in full (as well after as before judgment).

 

SECTION 2.12.                                         Alternate
Rate of Interest.  In the
event, and on each occasion, that on the day two Business Days prior to the
commencement of any Interest Period for a Eurocurrency Loan (i) the
Administrative Agent shall have determined (which determination shall be
conclusive and binding upon each Borrower) that, by reason of circumstances
affecting the relevant market, adequate and reasonable means do not exist for
ascertaining the Eurocurrency Rate for such Interest Period, or (ii) the
Required Lenders shall have determined and shall have notified the
Administrative Agent that the Eurocurrency Rate determined or to be determined
for such Interest Period will not adequately and fairly reflect the cost to
such Lenders (as conclusively certified by such Lenders) of making or
maintaining Eurocurrency Loans during such Interest Period, the Administrative
Agent shall, as soon as practicable thereafter, give written or telecopy notice
of such determination to the Borrowers and the Lenders.  In the event of any such determination, until
the Administrative Agent shall have advised the Borrowers and 

 

38

 

the
Lenders that the circumstances giving rise to such notice no longer exist, (i) any
request by a Borrower for a Eurocurrency Competitive Loan pursuant to Section 2.3
to be made after such determination shall be of no force and effect and shall
be denied by the Administrative Agent, (ii) any request by a Borrower for
a Eurocurrency Revolving Credit Loan denominated in Dollars pursuant to Section 2.4
to be made after such determination shall be deemed to be a request for an ABR
Loan, (iii) any request by a Borrower for a Multi-Currency Revolving Loan
to be made after such determination shall be deemed to be a request for an ABR
Loan in an aggregate principal amount equal to the Dollar equivalent (as
determined by the Foreign Exchange Rate on such date) of the relevant
Multi-Currency and (iv) any request by a Borrower for conversion into or a
continuation of a Eurocurrency Revolving Credit Loan pursuant to Section 2.8
to be made after such determination shall have no force and effect (in the case
of a requested conversion) or shall be deemed to be a request for a conversion
into an ABR Loan (in the case of a requested continuation); provided, that any request for a
conversion of a Multi-Currency Revolving Loan shall be deemed to be a request
for a conversion into an ABR Loan in an aggregate principal amount equal to the
Dollar equivalent (as determined by the Foreign Exchange Rate on such date) of
the relevant Multi-Currency.  Also, in
the event of any such determination, the relevant Borrower shall be entitled,
in its sole discretion, if the requested Competitive Loan has not been made, to
cancel its acceptance of the Competitive Bids or to cancel its Competitive Bid
Request relating thereto.  Each
determination by the Administrative Agent or the Required Lenders hereunder
shall be conclusive absent manifest error.

 

SECTION 2.13.                                         Termination
and Reduction of Commitments.  (a)  Upon at least three Business
Days’ prior irrevocable written or telecopy notice to the Administrative Agent,
CBS may at any time in whole permanently terminate, or from time to time in part
permanently reduce, the Commitments; provided, however,
that (i) each partial reduction of the Commitments shall be in a minimum
principal amount of $10,000,000 and in integral multiples of $1,000,000 in
excess thereof and (ii) no such termination or reduction shall be made if,
after giving effect thereto and to any prepayments of the Loans made on the
effective date thereof, (x) the Outstanding Revolving Extensions of Credit
of any Lender would exceed such Lender’s Commitment then in effect or (y) the
Total Facility Exposure would exceed the Total Commitment then in effect.  The Administrative Agent shall promptly
advise the Lenders of any notice given pursuant to this Section 2.13(a).

 

(b)                                 Except as
otherwise provided in Section 2.21, each reduction in the Commitments
hereunder shall be made ratably among the Lenders in accordance with their
respective Commitments.  CBS agrees to
pay to the Administrative Agent for the account of the Lenders, on the date of
termination or reduction of the Commitments, the Commitment Fees on the amount
of the Commitments so terminated or reduced accrued through the date of such
termination or reduction.

 

(c)                                  Upon a
decrease, pursuant to Section 2.13(a) or (b), in the Commitments, CBS
may decrease the Total Multi-Currency Sublimit and/or the Multi-Currency
Sublimit with respect to any or all Multi-Currencies, in each case in a minimum
principal amount of $10,000,000 and in integral multiples of $1,000,000 in
excess thereof.  No such termination or
reduction shall be made if, after giving effect thereto and to any prepayments
of the Loans made on the effective date thereof, (i) the Multi-Currency
Sublimit with respect to each applicable Multi-Currency would be less than the
Multi-Currency Revolving Loans outstanding in such 

 

39

 

Multi-Currency at such time or (ii) the
Total Multi-Currency Sublimit would be less than the outstanding principal
amount of Multi-Currency Revolving Loans at such time.

 

SECTION 2.14.                                         Optional
Prepayments of Revolving Credit Loans.  The relevant Borrower may at any time and
from time to time prepay the Revolving Credit Loans, in whole or in part,
without premium or penalty, upon giving irrevocable written or telecopy notice
(or telephone notice promptly confirmed by written or telecopy notice) to the
Administrative Agent:  (i) before
10:00 a.m., New York City time, three Business Days prior to prepayment,
in the case of Eurocurrency Revolving Credit Loans, and (ii) before 10:00 a.m.,
New York City time, one Business Day prior to prepayment, in the case of ABR
Revolving Credit Loans.  Such notice
shall specify the date and amount of prepayment
and whether the prepayment is of Eurocurrency Revolving Credit Loans,
ABR Revolving Credit Loans or a combination thereof, and, if of a combination
thereof, the amount allocable to each. 
If a Eurocurrency Revolving Credit Loan is prepaid on any day other than
the last day of the Interest Period applicable thereto, the relevant Borrower
shall also pay any amounts owing pursuant to Section 2.16.  Upon receipt of any such notice the
Administrative Agent shall promptly notify each Lender thereof.  If any such notice is given, the amount
specified in such notice shall be due and payable on the date specified
therein, together with (except in the case of ABR Revolving Credit Loans)
accrued interest to such date on the amount prepaid.  Partial prepayments of Revolving Credit Loans
shall be in an aggregate principal amount of $5,000,000 or a whole multiple of
$1,000,000 in excess thereof.

 

SECTION 2.15.                                         Reserve
Requirements; Change in Circumstances.  (a)  Notwithstanding any other provision
herein, if after the Closing Date any change in applicable law or regulation
(including any change in the reserve percentages provided for in Regulation D)
or in the interpretation or administration thereof by any Governmental
Authority charged with the interpretation or administration thereof shall
change the basis of taxation of payments to any Lender of the principal of or
interest on any Eurocurrency Loan or Absolute Rate Loan made by such Lender
(other than changes in respect of taxes imposed on the overall net income of
such Lender by the jurisdiction in which such Lender has its principal office
(or in which it holds any Eurocurrency Loan or Absolute Rate Loan) or by any
political subdivision or taxing authority therein and other than taxes that
would not have been imposed but for the failure of such Lender to comply with
applicable certification, information, documentation or other reporting
requirements), or shall impose, modify or deem applicable any reserve, special
deposit or similar requirement against assets of or deposits with or for the
account of such Lender, or shall impose on such Lender or the London interbank
market any other condition affecting this Agreement or any Eurocurrency Loan or
Absolute Rate Loan made by such Lender, and the result of any of the foregoing
shall be to increase the cost to such Lender of making or maintaining any
Eurocurrency Loan or Absolute Rate Loan or to reduce the amount of any sum
received or receivable by such Lender hereunder (whether of principal, interest
or otherwise) in respect of any Eurocurrency Loan or Absolute Rate Loan by an
amount deemed by such Lender to be material, then the relevant Borrower agrees
to pay to such Lender as provided in paragraph (c) below such additional
amount or amounts as will compensate such Lender for such additional costs
incurred or reduction suffered. Notwithstanding the foregoing, no Lender shall
be entitled to request compensation under this paragraph with respect to any
Competitive Loan if the change giving rise to such request shall, or in good
faith should, have been taken into account in 

 

40

 

formulating
the Competitive Bid pursuant to which such Competitive Loan shall have been
made.

 

(b)                                 If any Lender
or any Issuing Lender shall have determined that the adoption after the Closing
Date of any law, rule, regulation or guideline regarding capital adequacy, or any
change in any law, rule, regulation or guideline regarding capital adequacy or
in the interpretation or administration of any of the foregoing by any
Governmental Authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender (or any
lending office of such Lender) or Issuing Lender or any Lender’s or Issuing
Lender’s holding company with any request or directive regarding capital
adequacy (whether or not having the force of law) of any such authority,
central bank or comparable agency, has or would have the effect of reducing the
rate of return on such Lender’s or Issuing Lender’s capital or on the capital
of such Lender’s or Issuing Lender’s holding company, if any, as a consequence
of this Agreement or the Loans made by such Lender or the LC Exposure of such
Lender or Letters of Credit issued by such Issuing Lender pursuant hereto to a
level below that which such Lender or Issuing Lender or such Lender’s or
Issuing Lender’s holding company could have achieved but for such
applicability, adoption, change or compliance (taking into consideration such
Lender’s or Issuing Lender’s policies and the policies of such Lender’s or
Issuing Lender’s holding company with respect to capital adequacy) by an amount
deemed by such Lender or Issuing Lender to be material, then from time to time
the relevant Borrower agrees to pay to such Lender or Issuing Lender as
provided in paragraph (c) below such additional amount or amounts as will
compensate such Lender or Issuing Lender or such Lender’s or Issuing Lender’s
holding company for any such reduction suffered.

 

(c)                                  A certificate
of each Lender or Issuing Lender setting forth such amount or amounts as shall
be necessary to compensate such Lender or Issuing Lender as specified in
paragraph (a) or (b) above, as the case may be, and the basis
therefor in reasonable detail shall be delivered to the relevant Borrower and
shall be conclusive absent manifest error. 
The relevant Borrower shall pay each Lender or Issuing Lender the amount
shown as due on any such certificate within 30 days after its receipt of the
same.  Upon the receipt of any such
certificate, the relevant Borrower shall be entitled, in its sole discretion,
if any requested Loan has not been made, to cancel its acceptance of the
relevant Competitive Bids or to cancel the Competitive Bid Request relating
thereto, subject to Section 2.16.

 

(d)                                 Except as
provided in this paragraph, failure on the part of any Lender or Issuing Lender
to demand compensation for any increased costs or reduction in amounts received
or receivable or reduction in return on capital with respect to any period
shall not constitute a waiver of such Lender’s or Issuing Lender’s right to
demand compensation with respect to any other period.  The protection of this Section 2.15
shall be available to each Lender and Issuing Lender regardless of any possible
contention of the invalidity or inapplicability of the law, rule, regulation,
guideline or other change or condition which shall have occurred or been
imposed so long as it shall be customary for Lenders or Issuing Lenders
affected thereby to comply therewith.  No
Lender or Issuing Lender shall be entitled to compensation under this Section 2.15
for any costs incurred or reductions suffered with respect to any date unless
it shall have notified the relevant Borrower that it will demand compensation
for such costs or reductions under paragraph (c) above not more than 90
days after the later of (i) such date and (ii) the date on which it
shall have become aware of such costs or reductions.  Notwithstanding 

 

41

 

any other provision of this Section 2.15,
no Lender or Issuing Lender shall demand compensation for any increased cost or
reduction referred to above if it shall not at the time be the general policy
or practice of such Lender or Issuing Lender (as the case may be) to demand
such compensation in similar circumstances under comparable provisions of other
credit agreements, if any.  In the event
any Borrower shall reimburse any Lender or Issuing Lender pursuant to this Section 2.15
for any cost and such Lender or Issuing Lender (as the case may be) shall
subsequently receive a refund in respect thereof, such Lender or Issuing Lender
(as the case may be) shall so notify such Borrower and, upon its request, will
pay to such Borrower the portion of such refund which such Lender or Issuing
Lender (as the case may be) shall determine in good faith to be allocable to
the cost so reimbursed.  The covenants
contained in this Section 2.15 shall survive the termination of this
Agreement and the payment of the Loans and all other amounts payable hereunder.

 

SECTION 2.16.                                         Indemnity.  Each Borrower agrees to indemnify each Lender
against any loss or expense described below which such Lender may sustain or
incur as a consequence of (a) any failure by such Borrower to fulfill on
the date of any borrowing hereunder the applicable conditions set forth in Article IV,
(b) any failure by such Borrower to borrow, continue or convert any Loan
hereunder after irrevocable notice of such borrowing, continuation or
conversion has been given or deemed given or Competitive Bids have been
accepted pursuant to Article II, (c) any payment, prepayment or
conversion of a Eurocurrency Loan or Absolute Rate Loan made to such Borrower
required by any other provision of this Agreement or otherwise made or deemed
made, whatever the circumstances may be that give rise to such payment,
prepayment or conversion, or any transfer of any such Loan pursuant to Section 2.21
or 9.4(b), on a date other than the last day of the Interest Period applicable
thereto, or (d) if any breakage is incurred, any failure by a Borrower to
prepay a Eurocurrency Loan on the date specified in a notice of prepayment; provided, that
any request for indemnification made by any Lender to any Borrower pursuant
hereto shall be accompanied by such Lender’s calculation of such amount to be
indemnified.  The loss or expense for
which such Lender shall be indemnified under this Section 2.16 shall be
equal to the excess, if any, as reasonably determined by such Lender, of (i) its
cost of obtaining the funds for the Loan being paid, prepaid, converted or not
borrowed, continued, prepaid or converted (assumed to be the Eurocurrency Rate
in the case of Eurocurrency Loans) for the period from the date of such
payment, prepayment, conversion or failure to borrow, continue, prepay or
convert to the last day of the Interest Period for such Loan (or, in the case
of a failure to borrow, continue, prepay or convert, the Interest Period for
such Loan which would have commenced on the date of such failure) over (ii) the
amount of interest (as reasonably determined by such Lender) that would be
realized by such Lender in reemploying the funds so paid, prepaid, converted or
not borrowed, continued, prepaid or converted for such period or Interest
Period, as the case may be; provided, however,
that such amount shall not include any loss of a Lender’s margin or spread over
its cost of obtaining funds as described above. 
A certificate of any Lender setting forth any amount or amounts which
such Lender is entitled to receive pursuant to this Section 2.16 (with
calculations in reasonable detail) shall be delivered to the relevant Borrower
and shall be conclusive absent manifest error. 
This covenant shall survive the termination of this Agreement and the
payment of the Loans and all other amounts payable hereunder.

 

SECTION 2.17.                                         Pro
Rata Treatment; Funding Matters; Evidence of Debt.  (a)  Except as required under Section 2.21,
each payment or prepayment of principal of any 

 

42

 

Revolving
Credit Loan, each payment of interest on the Revolving Credit Loans, each
payment of LC Fees, each payment of the Facility Fees, and each reduction of
the Commitments, shall be allocated pro rata
among the Lenders in accordance with their respective Commitments
(or, if such Commitments shall have expired or been terminated, in accordance
with the respective principal amounts of their outstanding Revolving Credit
Loans).  Each Lender agrees that in
computing such Lender’s portion of any Loan to be made hereunder, the
Administrative Agent may, in its discretion, round such Lender’s percentage of
such Loan to the next higher or lower whole Dollar amount.

 

(b)                                 Unless the
Administrative Agent shall have received notice from a Lender prior to the
relevant borrowing date (or, in the case of a borrowing of ABR Revolving Credit
Loans, prior to the relevant borrowing time) 
that such Lender will not make available to the Administrative Agent
such Lender’s portion of a borrowing, the Administrative Agent may assume that
such Lender has made such portion available to the Administrative Agent on the
date of such borrowing in accordance with this Agreement and the Administrative
Agent may, in reliance upon such assumption, make available to the relevant
Borrower on such date a corresponding amount. 
If and to the extent that such Lender shall not have made such portion
available to the Administrative Agent, each of such Lender and the relevant
Borrower agrees to repay to the Administrative Agent forthwith on demand such
corresponding amount together with interest thereon, for each day from the date
such amount is made available to such Borrower until the date such amount is
repaid to the Administrative Agent at (i) in the case of such Borrower,
the interest rate applicable at the time to the relevant Loan and (ii) in
the case of such Lender, 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 or, in the case of a Loan denominated in a
Foreign Currency, the rate which would reasonably and customarily be charged
for inter-bank obligations denominated in such Foreign Currency.  If such Lender shall repay to the
Administrative Agent such corresponding amount, such amount shall constitute
such Lender’s Loan as part of such borrowing for the purposes of this
Agreement; provided, that such repayment shall not release such Lender from any
liability it may have to such Borrower for the failure to make such Loan at the
time required herein.

 

(c)                                  The failure of
any Lender to make any Loan shall not in itself relieve any other Lender of its
obligation to lend hereunder (it being understood, however, that no Lender
shall be responsible for the failure of any other Lender to make any Loan
required to be made by such other Lender).

 

(d)                                 Each Lender may
at its option make any Eurocurrency Loan by causing any domestic or foreign
branch or Lender Affiliate of such Lender to make such Loan; provided, that
any exercise of such option shall not affect the obligation of the relevant
Borrower to repay such Loan in accordance with the terms of this Agreement.

 

(e)                                  Each Lender
shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness to such Lender resulting from each Loan made by it
from time to time, including the amounts of principal and interest payable and
paid to such Lender from time to time under this Agreement.  The Administrative Agent shall maintain
accounts in which it will record (i) the amount of each Loan made
hereunder, the Borrower with respect to each Loan, the Type of each Loan and
each Interest Period, if any, applicable thereto, 

 

43

 

(ii) the amount of any principal or
interest due and payable or to become due and payable from each Borrower to
each Lender hereunder and (iii) the amount of any sum received by the
Administrative Agent hereunder from any Borrower and each Lender’s share
thereof.  The entries made in the
accounts maintained pursuant to this paragraph (e) shall, to the extent
permitted by applicable law, be prima facie evidence
of the existence and amounts of the obligations therein recorded; provided, however, that the failure of any Lender or the
Administrative Agent to maintain such accounts or any error therein shall not
in any manner affect the obligations of any Borrower to repay the Loans in
accordance with their terms.

 

(f)                                    In order to
expedite the transactions contemplated by this Agreement, each Subsidiary
Borrower shall be deemed, by its execution and delivery of a Subsidiary
Borrower Request, to have appointed CBS to act as agent on behalf of such
Subsidiary Borrower for the purpose of (i) giving any notices contemplated
to be given by such Subsidiary Borrower pursuant to this Agreement, including,
without limitation, borrowing notices, prepayment notices, continuation
notices, conversion notices, competitive bid requests and competitive bid
acceptances or rejections and (ii) paying on behalf of such Subsidiary
Borrower any Subsidiary Borrower Obligations owing by such Subsidiary Borrower;
provided, that each Subsidiary Borrower shall retain the right, in its
discretion, to directly give any or all of such notices or make any or all of
such payments.

 

(g)                                 The
Administrative Agent shall promptly notify the Lenders upon receipt of any
Subsidiary Borrower Designation and Subsidiary Borrower Request.  The Administrative Agent shall promptly
notify the Swingline Lenders upon receipt of any designation of a Subsidiary
Borrower as a Swingline Borrower.

 

SECTION 2.18.                                         Sharing
of Setoffs.  Except to
the extent that this Agreement provides for payments to be allocated to
Revolving Credit Loans, Swingline Loans or Competitive Loans, as the case may
be, each Lender agrees that if it shall, through the exercise of a right of
banker’s lien, setoff or counterclaim against any Borrower, or pursuant to a
secured claim under Section 506 of Title 11 of the United States Code or
other security or interest arising from, or in lieu of, such secured claim,
received by such Lender under any applicable bankruptcy, insolvency or other
similar law or otherwise, or by any other means (other than pursuant to any
provision of this Agreement), obtain payment (voluntary or involuntary) in
respect of any category of its Loans or such Lender’s Revolving Credit
Percentage of any LC Disbursement as a result of which the unpaid principal
portion of such Loans or the unpaid portion of such Lender’s Revolving Credit
Percentage of the LC Disbursements shall be proportionately less than the
unpaid principal portion of such Loans or the unpaid portion of the Revolving
Credit Percentage of the LC Disbursements of any other Lender, it shall be
deemed simultaneously to have purchased from such other Lender at face value,
and shall promptly pay to such other Lender the purchase price for, a
participation in such Loans or the Revolving Credit Percentage of the LC
Disbursements of such other Lender, so that the aggregate unpaid principal
amount of such Loans and participations in such Loans held by each Lender or
the Revolving Credit Percentage of LC Disbursements and participations in LC
Disbursements held by each Lender shall be in the same proportion to the
aggregate unpaid principal amount of all such Loans or LC Disbursements then
outstanding as the principal amount of such Loans or the Revolving Credit
Percentage of LC Disbursements of each Lender prior to such exercise of banker’s
lien, setoff or counterclaim or other event was to the principal amount of all
such Loans 

 

44

 

or
LC Disbursements outstanding prior to such exercise of banker’s lien, setoff or
counterclaim or other event; provided, however,
that, if any such purchase or purchases or adjustments shall be made pursuant
to this Section 2.18 and the payment giving rise thereto shall thereafter
be recovered, such purchase or purchases or adjustments shall be rescinded to
the extent of such recovery and the purchase price or prices or adjustment
restored without interest, unless the Lender from which such payment is
recovered is required to pay interest thereon, in which case each Lender
returning funds to such Lender shall pay its pro
rata share of such interest. 
Any Lender holding a participation in a Loan or LC Disbursement deemed
to have been so purchased may exercise any and all rights of banker’s lien, setoff
or counterclaim with respect to any and all moneys owing by any Borrower to
such Lender by reason thereof as fully as if such Lender had made a Loan
directly to such Borrower or issued a Letter of Credit for the account of such
Borrower in the amount of such participation.

 

SECTION 2.19.                                         Payments.  (a)  Except as otherwise expressly
provided herein, each Borrower shall make each payment (including principal of
or interest on any Loan or any Fees or other amounts) hereunder without setoff
or counterclaim and shall make each such payment not later than 12:00 noon, New
York City time, on the date when due in Dollars to the Administrative Agent at
its offices at JPMorgan Chase Bank, N.A., 270 Park Avenue, New York, New York
10017, in immediately available funds. 
Notwithstanding the foregoing, each Borrower shall make each payment
with respect to any Loan denominated in any Foreign Currency (including
principal of or interest on any such Loan or other amounts) hereunder without
setoff or counterclaim and shall make each such payment not later than 12:00
noon, London time, on the date when due in the relevant Foreign Currency to the
Administrative Agent at its offices at J.P. Morgan Europe Limited, 125 London
Wall, London, England EC2Y 5AJ, United Kingdom, in immediately available funds.

 

(b)                                 Whenever any
payment (including principal of or interest on any Loan or any Fees or other
amounts) hereunder shall become due, or otherwise would occur, on a day that is
not a Business Day, such payment may be made on the next succeeding Business
Day, and such extension of time shall in such case be included in the
computation of interest or Fees, if applicable.

 

SECTION 2.20.                                         Taxes.  (a)  Any and all payments by each
Borrower hereunder shall be made, in accordance with Section 2.19, free
and clear of and without deduction or withholding (except to the extent
required by law) for any and all present or future Taxes, excluding (i) net income taxes and franchise taxes (imposed in lieu
of net income taxes) imposed on the Administrative Agent or any Lender as a
result of a present or former connection between the Administrative Agent or
such Lender and the jurisdiction of the Governmental Authority imposing such
tax or any political subdivision or taxing authority thereof or therein (other
than any such connection arising solely from the Administrative Agent’s or such
Lender’s having executed, delivered or performed its obligations or received a
payment under, or enforced, this Agreement or any other Loan Document),
(ii)Taxes that are attributable to such Lender’s failure to comply with the
requirements of Section 2.20(f) or (g), and (iii) Taxes that are
withholding taxes that are imposed by the United States of America on amounts
payable to a Lender at the time such Lender becomes a party to this Agreement
(or designates a new lending office), except (x) to the extent that the
Lender or such Lender’s assignor (if any) was entitled, at the time of
assignment (or designation of a new lending office), to receive additional
amounts from the 

 

45

 

Borrowers
with respect to such Taxes pursuant to this Section 2.20(a), or (y) those
imposed on a Transferee pursuant to a request by the Borrower under Section 2.21(b)(ii) (all
such excluded Taxes being hereinafter referred to as “Excluded
Taxes” and all Taxes other than Excluded Taxes being hereinafter
referred to as “Indemnified Taxes”).  If any Indemnified Taxes or Other Taxes shall
be required by law to be deducted or withheld from or in respect of any sum
payable to any Agent or any Lender hereunder (as determined by the applicable
withholding agent in good faith), (i) the sum payable shall be increased
by the amount necessary so that after making all required withholdings or
deductions (including withholdings or deductions applicable to additional sums
payable under this Section 2.20) such Agent or such Lender shall receive
an amount equal to the sum it would have received had no such withholdings
deductions been made and (ii) such withholdings or deductions shall be
made and the full amounts withheld or deducted shall be paid to the relevant
taxing authority or other Governmental Authority in accordance with applicable
law.

 

(b)                                 The relevant
Borrower agrees to pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.

 

(c)                                  The relevant
Borrower will indemnify each Lender (or Transferee) and the Administrative
Agent for the full amount of Indemnified Taxes and Other Taxes (including any
Indemnified Taxes or Other Taxes imposed by the applicable jurisdiction on
amounts payable under this Section 2.20) paid by such Lender (or
Transferee) or the Administrative Agent, as the case may be, and any liability
(including penalties, interest and expenses) arising therefrom or with respect
thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or
legally asserted by the relevant taxing authority or other Governmental
Authority.  Such indemnification shall be
made within 30 days after the date such Lender (or Transferee) or the
Administrative Agent, as the case may be, makes written demand therefor.

 

(d)                                 Whenever any
Indemnified Taxes or Other Taxes are payable by any Borrower, within 30 days
thereafter such Borrower shall send to the Administrative Agent for its own
account or for the account of the relevant Lender, as the case may be, a
certified copy of an official receipt received by such Borrower showing payment
thereof (or other evidence of such payment reasonably satisfactory to the
Administrative Agent).

 

(e)                                  Without
prejudice to the survival of any other agreement contained herein, the
agreements and obligations contained in this Section 2.20 shall survive
the payment in full of the principal of and interest on all Loans made
hereunder and of all other amounts payable hereunder.

 

(f)                                    Each Lender (or
Transferee) that is not a “United States Person” as defined in Section 7701(a)(30)
of the Code (such Lender (or Transferee), a “Non-U.S.
Person”) shall deliver to CBS and the Administrative Agent (or, in the
case of a participant, to the Lender from which the related participation shall
have been purchased) (i) two copies of either U.S. Internal Revenue
Service Form W-8BEN, Form W-8ECI, or Form W-8IMY (accompanied by
applicable underlying Internal Revenue Service forms) claiming complete
exemption from or a reduction in U.S. federal withholding tax on all payments
by any Borrower under this Agreement, (ii) in the case of a Non-U.S.
Person claiming exemption from U.S. federal withholding tax under Section 871(h) or
881(c) of the Code with respect to payments of

 

46

 

“portfolio interest”, the applicable Form W-8,
or any subsequent versions thereof or successors thereto, and a statement
representing that such Non-U.S. Person is not a “bank” for purposes of Section 881(c) of
the Code, is not a 10-percent shareholder (within the meaning of Section 871(h)(3)(B) of
the Code) of CBS and is not a controlled foreign corporation related to CBS
(within the meaning of Section 864(d)(4) of the Code)), properly
completed and duly executed by such Non-U.S. Person claiming complete exemption
from U.S. federal withholding tax on all payments by any Borrower under this
Agreement or (iii) any other form prescribed by applicable law as a basis
for claiming exemption from or a reduction in U.S. federal withholding tax duly
completed together with such supplementary documentation as may be prescribed
by applicable law to permit the Borrower to determine the withholding or
deduction required to be made.  In the case of a Non-U.S. Person claiming the benefits of an
income tax treaty to which the United States is a party, the U.S. Internal
Revenue Service Form W-8BEN shall, as applicable, (1) establish an
exemption from U.S. federal withholding Tax pursuant to the “interest” article
of such tax treaty and/or (2) establish an exemption from U.S. federal
withholding Tax pursuant to the “business profits” or “other income” article of
such tax treaty.  Such forms
shall be delivered by each Non-U.S. Person promptly after it becomes a party to
this Agreement (or, in the case of any participant, promptly after the date
such participant purchases the related participation) and from time to time
thereafter upon the request of the Borrower or the Administrative Agent.  In addition, each Non-U.S. Person shall
deliver such forms promptly upon the obsolescence or invalidity of any form
previously delivered by such Non-U.S. Person. 
Each Non-U.S. Person shall promptly notify CBS and the Administrative
Agent at any time it determines that it is no longer in a position to provide
any previously delivered certificate to CBS (or any other form of certification
adopted by the U.S. taxing authorities for such purpose).  Unless CBS and the Administrative Agent (or,
in the case of a participant, the Lender from which the related participation
shall have been purchased) have received forms or other documents satisfactory
to them indicating that payments hereunder are not subject to United States
withholding tax, the relevant Borrower or the Administrative Agent shall withhold taxes from such payments at
the applicable statutory rate in the case of payments of interest to or for any
Lender (or Transferee) that is a Non-U.S. Person.  Notwithstanding any other provision of this Section 2.20(f),
a Non-U.S. Person shall not be required to deliver any form pursuant to this Section 2.20(f) that
such Non-U.S. Person is not legally able to deliver.

 

(g)                                 A Lender that
is entitled to an exemption from or reduction of any non-U.S. withholding tax
under the law of the jurisdiction in which a Borrower is located, or under any
treaty to which such jurisdiction is a party, with respect to payments under
this Agreement shall deliver to such Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law or
reasonably requested by such Borrower or the Administrative Agent, such
properly completed and executed documentation prescribed by applicable law as
will permit such payments to be made without withholding or at a reduced rate, provided that
such Lender is legally entitled to complete, execute and deliver such
documentation and in such Lender’s reasonable judgment such completion,
execution or submission would not materially prejudice the legal position of
such Lender.

 

SECTION 2.21.                                         Termination
or Assignment of Commitments Under Certain Circumstances.  (a)  Any Lender (or Transferee)
claiming any additional amounts payable pursuant to Section 2.15 or Section 2.20
or giving notice to the Administrative Agent and CBS as contemplated in the “plus”
clause in the definition of Eurocurrency Rate in Section 1.1 shall use 

 

47

 

reasonable
efforts (consistent with legal and regulatory restrictions) to file any
certificate or document requested by any Borrower or to change the jurisdiction
of its applicable lending office if the making of such a filing or change would
avoid the need for or reduce the amount of any such additional amounts which
may thereafter accrue and would not, in the sole, good faith determination of
such Lender (or Transferee), be otherwise disadvantageous to such Lender (or
Transferee).

 

(b)                                 In the event
that (w) any Lender shall have delivered a notice or certificate pursuant
to Section 2.15, (x) any Borrower shall be required to make
additional payments to any Lender under Section 2.20, (y) any Lender
(a “Non-Consenting Lender”) shall
withhold its consent to any amendment described in clause (i) or (ii) of
Section 9.8(b) as to which consents have been obtained from Lenders
having Total Facility Percentages aggregating at least 90% or (z) any Lender
becomes a Defaulting Lender, CBS shall have the right, at its own expense, upon
notice to such Lender (or Lenders) and the Administrative Agent, (i) to
terminate the Commitments of such Lender (except in the case of clause (y) above)
or (ii) to require such Lender (or, in the case of clause (y) above,
each Non-Consenting Lender) to transfer and assign without recourse (in
accordance with and subject to the restrictions contained in Section 9.4)
all its interests, rights and obligations under this Agreement to one or more
other financial institutions acceptable to CBS (unless an Event of Default has
occurred and is continuing) and the Administrative Agent, which approval in
each case shall not be unreasonably withheld, which shall assume such obligations;
provided, that (w) in the case of any replacement of Non-Consenting
Lenders, each assignee shall have consented to the relevant amendment, (x) no
such termination or assignment shall conflict with any law, rule or
regulation or order of any Governmental Authority, (y) the Borrowers or
the assignee (or assignees), as the case may be, shall pay to each affected
Lender in immediately available funds on the date of such termination or
assignment the principal of and interest accrued to the date of payment on the
Loans made by it hereunder and all other amounts accrued for its account or
owed to it hereunder and (z) CBS may not terminate Commitments
representing more than 10% of the original aggregate Commitments pursuant to
this paragraph (b).

 

SECTION 2.22.                                         Currency
Equivalents.  (a)  The
Administrative Agent shall determine the Dollar equivalent of each Competitive
Bid Loan in a Foreign Currency and each Multi-Currency Revolving Loan as of the
first day of each Interest Period applicable thereto and, in the case of any
such Interest Period of more than three months, at three-month intervals after
the first day thereof.  The
Administrative Agent shall promptly notify the applicable Borrowers and the
Lenders of the Dollar equivalent so determined by it.  Each such determination shall be based on the
Spot Rate (i) (A) on the date of the related Competitive Bid Request,
for purposes of the initial determination of such Competitive Bid Loan, and (B) on
the date of the related Revolving Credit Borrowing Request, for purposes of the
initial determination of such Multi-Currency Revolving Loan, and (ii) on
the fourth Business Day prior to the date on which such Dollar equivalent is to
be determined, for purposes of subsequent determinations.

 

(b)                                 The
Administrative Agent shall determine the Dollar equivalent of the Aggregate LC
Exposure related to each Letter of Credit issued in a Foreign Currency as of
the date of the issuance thereof, at three-month intervals after the date of
issuance thereof and as of the date of each drawing thereunder.  Each such determination shall be based on the
Spot Rate (i) on the date of the related notice of any proposed issuance
of a Letter of Credit pursuant to 

 

48

 

Section 2.7(c), in the case of the
initial determination of such Letter of Credit, (ii) on the second
Business Day prior to the date as of which such Dollar equivalent is to be
determined, in the case of any subsequent determination with respect to an
outstanding Letter of Credit and (iii) on the second Business Day prior to
the related drawing thereunder, in the case of any determination as to a
drawing thereunder.

 

(c)                                  If after giving
effect to any such determination of a Dollar equivalent with respect to
Competitive Bid Loans or Letters of Credit, the Dollar equivalent thereof
exceeds $150,000,000, CBS shall, or shall cause the applicable Subsidiary
Borrowers to, within five Business Days, (i) in the case of an excess with
respect to Competitive Bid Loans, prepay outstanding Competitive Bid Loans in
Foreign Currencies to eliminate such excess, (ii) in the case of an excess
with respect to Letters of Credit, cause to be reduced (or, at the relevant
Borrower’s option, cash collateralize) outstanding Letters of Credit in Foreign
Currencies to eliminate such excess, or (iii) in each case, take such
other action to the extent necessary to eliminate any such excess.  If after giving effect to any such
determination of a Dollar equivalent with respect to Multi-Currency Revolving
Loans, the Dollar equivalent thereof exceeds (A) the Multi-Currency
Sublimit for any currency or (B) the Total Multi-Currency Sublimit, CBS
shall, or shall cause the relevant Subsidiary Borrowers to, within five
Business Days, prepay outstanding Multi-Currency Revolving Loans so that the
Specified Currency Availability for each currency is greater than or equal to
zero and so that the Total Specified Currency Availability is greater than or
equal to zero or take such other action to the extent necessary to eliminate any
such excess.

 

(d)                                 Notwithstanding
the foregoing, if at any time (i) the Commitment Utilization Percentage
(calculated without giving effect to clauses (a)(ii) and (b)(ii) contained
in the definition thereof in Section 1.1) is greater than 110%, CBS shall,
or shall cause the relevant Subsidiary Borrowers to, within five Business Days
prepay outstanding Competitive Bid Loans in Foreign Currencies, prepay
outstanding Multi-Currency Revolving Loans, cause to be reduced (or, at the
relevant Borrower’s option, cash collateralize) outstanding Letters of Credit
in Foreign Currencies or take such other action to the extent necessary to
eliminate any such excess, or (ii) the Dollar equivalent of the
outstanding Multi-Currency Revolving Loans is greater than 110% of (A) the
Multi-Currency Sublimit for any currency or (B) the Total Multi-Currency
Sublimit, CBS shall, or shall cause the relevant Subsidiary Borrowers to,
within five Business Days, prepay outstanding Multi-Currency Revolving Loans so
that the Specified Currency Availability for each currency is greater than or
equal to zero and so that the Total Specified Currency Availability is greater
than or equal to zero or take such other action to the extent necessary to
eliminate any such excess.

 

(e)                                  If any prepayment
of a Competitive Bid Loan or a Multi-Currency Revolving Loan occurs pursuant to
this Section 2.22 on a day which is not the last day of the then current
Interest Period with respect thereto, CBS shall, or shall cause the applicable
Subsidiary Borrowers to, pay to the Lenders such amounts, if any, as may be
required pursuant to Section 2.16.

 

SECTION 2.23.                                         Judgment
Currency.  If, for the
purpose of obtaining judgment in any court, it is necessary to convert a sum
due from any Borrower hereunder in the currency expressed to be payable herein
(the “specified currency”) into
another currency, the parties 

 

49

 

hereto
agree, to the fullest extent that they may effectively do so, that the rate of
exchange used shall be that at which in accordance with normal banking
procedures the Administrative Agent could purchase the specified currency with
such other currency at the Administrative Agent’s London office on any Business
Day preceding that on which the final judgment is given.  The obligations of each Borrower in respect
of any sum due to any Lender or the Administrative Agent hereunder shall,
notwithstanding any judgment in a currency other than the specified currency, be
discharged only to the extent that on the Business Day following receipt by
such Lender or the Administrative Agent, as the case may be, of any sum
adjudged to be so due in such other currency such Lender or the Administrative
Agent, as the case may be, may in accordance with normal banking procedures
purchase the specified currency with such other currency.  If the amount of the specified currency so
purchased is less than the sum originally due to such Lender or the
Administrative Agent, as the case may be, in the specified currency, the applicable
Borrower agrees, to the fullest extent that it may effectively do so, as a
separate obligation and notwithstanding any such judgment, to indemnify such
Lender or the Administrative Agent, as the case may be, against such loss, and
if the amount of the specified currency so purchased exceeds (i) the sum
originally due to any Lender or the Administrative Agent, as the case may be,
in the specified currency and (ii) any amounts shared with other Lenders
as a result of allocations of such excess as a disproportionate payment to such
Lender as compared to such Lender’s Total Facility Percentage, such Lender or
the Administrative Agent, as the case may be, agrees to remit such excess to
the applicable Borrower.

 

SECTION 2.24.                                         Defaulting
Lenders.  Notwithstanding any provision
of this Agreement to the contrary, if any Lender becomes a Defaulting Lender,
then the following provisions shall apply for so long as such Lender is a
Defaulting Lender:

 

(a)                                  fees shall
cease to accrue on the unused portion of the Commitment of such Defaulting
Lender pursuant to Section 2.9(a);

 

(b)                                 the Commitment
and Facility Exposure of such Defaulting Lender shall not be included in
determining whether all Lenders or the Required Lenders have taken or may take
any action hereunder (including any consent to any amendment or waiver pursuant
to Section 9.8), provided that any waiver, amendment or modification
requiring the consent of all Lenders or each directly affected Lender pursuant
to Section 9.8(b)(i), (ii) and (iii), shall in each case require the
consent of such Defaulting Lender;

 

(c)                                  if any ABR
Swingline Exposure or LC Exposure exists at the time a Lender becomes a
Defaulting Lender then:

 

(i)                                     all or any part
of the contingent obligations of the Lenders in respect of such ABR Swingline
Exposure and LC Exposure shall be reallocated among the non-Defaulting Lenders
in accordance with their respective Revolving Credit Percentages but only to
the extent (x) the sum of all non-Defaulting Lenders’ Outstanding
Revolving Extensions of Credit does not exceed the total of all non-Defaulting
Lenders’ Commitments and (y) the conditions set forth in Section 4.3(b),
(c) and (d) are satisfied at such time; and

 

50

 

(ii)                                  if the
reallocation described in clause (i) above cannot, or can only partially,
be effected, the Borrowers shall within one Business Day following notice by
the Administrative Agent (x) first, prepay the ABR Swingline Loans
and (y) second, cash collateralize such Defaulting Lender’s LC
Exposure (after giving effect to any partial reallocation pursuant to clause (i) above)
in a manner satisfactory to the Administrative Agent for so long as such LC
Exposure is outstanding.

 

(iii)                               if the
Borrowers cash collateralize any portion of such Defaulting Lender’s LC
Exposure pursuant to this Section 2.24(c), the Borrowers shall not be
required to pay any fees to such Defaulting Lender pursuant to Section 2.9(b) with
respect to such Defaulting Lender’s LC Exposure during the period such
Defaulting Lender’s LC Exposure is cash collateralized;

 

(iv)                              if the LC
Exposure of the non-Defaulting Lenders is reallocated pursuant to this Section 2.24(c),
then the fees payable to the Lenders pursuant to Section 2.9(b) shall
be adjusted in accordance with such non-Defaulting Lenders’ Revolving Credit
Percentages; and

 

(v)                                 if any
Defaulting Lender’s LC Exposure is neither cash collateralized nor reallocated
pursuant to this Section 2.24(c), then, without prejudice to any rights or
remedies of any Issuing Lender or any Lender hereunder, all fees that otherwise
would have been payable to such Defaulting Lender (solely with respect to the
portion of such Defaulting Lender’s Commitment that was utilized by such LC
Exposure) under Section 2.9(b) with respect to such Defaulting Lender’s
LC Exposure shall be payable to the Issuing Lenders in accordance with their
outstanding Letters of Credit until such LC Exposure is cash collateralized
and/or reallocated;

 

(d)                                 so long as any
Lender is a Defaulting Lender none of the Swingline Lenders shall be required
to fund any ABR Swingline Loans and none of the Issuing Lenders shall be
required to issue, amend or increase any Letter of Credit, unless it is
satisfied that the related exposure will be 100% covered by the Commitments of
the non-Defaulting Lenders and/or cash collateral will be provided by the
Borrowers in accordance with Section 2.24(c), and participating interests
in any such newly issued or increased Letter of Credit or newly made Swingline
Loans shall be allocated among non-Defaulting Lenders in a manner consistent
with Section 2.24(c)(i) (and Defaulting Lenders shall not participate
therein); and

 

(e)                                  any amount
payable to such Defaulting Lender hereunder (whether on account of principal,
interest, fees or otherwise and including any amount that would otherwise be
payable to such Defaulting Lender pursuant hereto (but excluding Section 2.21)
may, in lieu of being distributed to such Defaulting Lender, be applied by the
Administrative Agent (i) first, to the payment of any amounts owing
by such Defaulting Lender to the Issuing Lenders, the Swingline Lenders and the
Administrative Agent hereunder, (ii) second, to the funding of any
Loan in respect of which such Defaulting Lender has failed to fund its portion
thereof as required by this Agreement and (iii) third, to such
Defaulting Lender; provided that if such payment is (x) a prepayment of
the principal amount of any Loans and (y) made at a time when the
conditions set forth in Section 4.3 are satisfied, such payment shall be
applied solely to prepay the Loans of 

 

51

 

all non-Defaulting Lenders pro rata prior to
being applied to the prepayment of any Loans of any Defaulting Lender.

 

In the event that the Administrative Agent and CBS
each agrees that a Defaulting Lender has adequately remedied all matters that
caused such Lender to be a Defaulting Lender, then on such date such Lender
shall purchase at par such of the Revolving Credit Loans of the other Lenders
as the Administrative Agent shall determine may be necessary in order for such
Lender to hold the Revolving Credit Loans in accordance with its Commitment
Percentage.  Except as expressly modified
by this Section 2.24, the performance by any Borrower under any of the Loan
Documents shall not be excused or otherwise modified as a result of this Section 2.24.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

CBS hereby represents and warrants, and each
Subsidiary Borrower by its execution and delivery of a Subsidiary Borrower
Request represents and warrants (to the extent specifically applicable to such
Subsidiary Borrower), to each of the Lenders that:

 

SECTION 3.1.                                               Corporate
Existence.  Each of CBS
and each Material Subsidiary: (a) is a corporation, partnership or other
entity duly organized and validly existing under the laws of the jurisdiction
of its organization; (b) has all requisite corporate or other power, and
has all material governmental licenses, authorizations, consents and approvals,
necessary to own its assets and carry on its business as now being conducted,
except where the failure to have any of the foregoing would not result in a
Material Adverse Effect; and (c) is qualified to do business in all
jurisdictions in which the nature of the business conducted by it makes such
qualification necessary and where failure so to qualify would result in a
Material Adverse Effect.

 

SECTION 3.2.                                               Financial
Condition.  The
consolidated balance sheet of CBS and its Consolidated Subsidiaries as at December 31,
2008, and the related consolidated statements of operations and cash flows of
CBS and its Consolidated Subsidiaries for the fiscal year ended on such date,
with the opinion thereon of PricewaterhouseCoopers LLP, heretofore furnished to
each of the Lenders (or set forth in CBS’s Annual Report on Form 10-K for
such fiscal year filed with the SEC and made available to the Lenders through
access to a web site, including, without limitation, www.sec.gov), fairly
present the consolidated financial condition of CBS and its Consolidated
Subsidiaries as at such date and the consolidated results of their operations
for the fiscal year ended on such date in accordance with GAAP.  The unaudited consolidated balance sheet of
CBS and its Consolidated Subsidiaries as at June 30, 2009, and the related
unaudited consolidated statements of operations and cash flows of CBS and its
Consolidated Subsidiaries for the six-month period then ended, heretofore
furnished to each of the Lenders (or set forth in CBS’s Quarterly Report on Form 10-Q
for the fiscal quarter ended June 30, 2009 filed with the SEC and made
available to the Lenders through access to a web site, including, without
limitation, www.sec.gov), fairly present (subject to normal year-end audit
adjustments) the consolidated financial condition of CBS and its Consolidated
Subsidiaries as at such date and the consolidated results of their operations
for the six-month period ended on such 

 

52

 

date
in accordance with GAAP.  Neither CBS nor
any of its Material Subsidiaries had on June 30, 2009 any known material
contingent liability, except as referred to or reflected or provided for in the
Exchange Act Report or in such balance sheets (or the notes thereto) as at such
date.

 

SECTION 3.3.                                               Litigation.  Except as disclosed to the Lenders in the
Exchange Act Report or otherwise disclosed in writing to the Lenders prior to
the Closing Date, there are no legal or arbitral proceedings, or any
proceedings by or before any Governmental Authority, pending or (to the
knowledge of CBS) threatened against CBS or any of its Material Subsidiaries
which have resulted in a Material Adverse Effect (it being agreed that any
legal or arbitral proceedings which have been disclosed in the Exchange Act
Report, whether threatened, pending, resulting in a judgment or otherwise,
prior to the time a final judgment for the payment of money shall have been
recorded against CBS or any Material Subsidiary by any Governmental Authority
having jurisdiction, and the judgment is non-appealable (or the time for appeal
has expired) and all stays of execution have expired or been lifted shall not,
in and of itself, be deemed to result in a Material Adverse Effect).  The “Exchange
Act Report” shall mean, collectively, (a) the Annual Report of
CBS on Form 10-K for the year ended December 31, 2008 and Quarterly
Reports on Form 10-Q and Reports on Form 8-K of CBS filed with or
furnished to the SEC subsequent to December 31, 2008, but on or before October 26,
2009, in each case, as amended or supplemented on or before October 26,
2009.

 

SECTION 3.4.                                               No
Breach, etc.  None of the
execution and delivery of this Agreement, the consummation of the transactions
herein contemplated and compliance with the terms and provisions hereof will
conflict with or result in a breach of, or require any consent under, the
charter or By-laws (or other equivalent organizational documents) of any
Borrower or CBS Operations, or any applicable law or regulation, or any order,
writ, injunction or decree of any Governmental Authority, or any material
agreement or instrument to which CBS or any of its Material Subsidiaries or CBS
Operations is a party or by which any of them is bound or to which any of them
is subject, or constitute a default under any such agreement or instrument, or
result in the creation or imposition of any Lien upon any of the revenues or
assets of CBS or any of its Material Subsidiaries or CBS Operations pursuant to
the terms of any such agreement or instrument. 
Neither CBS nor any of its Material Subsidiaries nor CBS Operations is
in default under or with respect to any of its material contractual obligations
in any respect that would have a Material Adverse Effect.

 

SECTION 3.5.                                               Corporate
Action.  Each of the Borrowers and CBS
Operations has all necessary corporate power and authority to execute, deliver
and perform its obligations under this Agreement; the execution and delivery by
each of the Borrowers and CBS Operations of this Agreement (or, in the case of
each Subsidiary Borrower, the relevant Subsidiary Borrower Request), and the
performance by each of the Borrowers and CBS Operations of this Agreement, have
been duly authorized by all necessary corporate action on its part; this
Agreement (or, in the case of each Subsidiary Borrower, the relevant Subsidiary
Borrower Request) has been duly and validly executed and delivered by each of
the Borrowers and CBS Operations; and this Agreement constitutes a legal, valid
and binding obligation of each of the Borrowers and CBS Operations, enforceable
in accordance with its terms except as such enforceability may be limited by (a) bankruptcy,
insolvency, reorganization, moratorium, fraudulent transfer or similar laws of
general applicability affecting the enforcement of creditors’ rights and (b) the
application 

 

53

 

of
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

 

SECTION 3.6.                                               Approvals.  No authorizations, approvals or consents of,
and no filings or registrations with, any Governmental Authority are necessary
for the execution, delivery or performance by each Borrower of this Agreement
or for the validity or enforceability hereof.

 

SECTION 3.7.                                               ERISA.  CBS and, to the best of its knowledge, its
ERISA Affiliates have fulfilled their respective obligations under the minimum
funding standards of ERISA and the Code with respect to each Plan and are in
compliance in all material respects with the currently applicable provisions of
ERISA and the Code except where any failure or non-compliance would not result
in a Material Adverse Effect.

 

SECTION 3.8.                                               Taxes.  CBS and its Material Subsidiaries, to the
knowledge of CBS, have filed all United States Federal income tax returns and
all other material tax returns which are required to be filed by or in respect
of them and have paid or caused to be paid all Taxes shown as due on such
returns or pursuant to any assessment received by CBS or any of its Material
Subsidiaries, except those being contested and reserved against in accordance
with Section 5.2.

 

SECTION 3.9.                                               Investment
Company Act.  No Borrower
is an “investment company”, or a
company “controlled” by an “investment company”, subject to regulation
under the Investment Company Act of 1940, as amended.

 

SECTION 3.10.                                         Environmental.  Except as in the aggregate would not have a
Material Adverse Effect, neither CBS nor any of its Subsidiaries has received
any notice of violation, alleged violation, non-compliance or liability
regarding environmental matters or compliance with Environmental Laws with
regard to any of its or its Subsidiaries’ Properties or business, nor does CBS
have any knowledge that any notice will be received or is being threatened.

 

SECTION 3.11.                                         Material
Subsidiaries.  The list of
Subsidiaries set forth in the most recently issued Form 10-K of CBS is
complete and correct in all material respects with respect to Material
Subsidiaries as of the date of the issuance of such Form 10-K.

 

ARTICLE IV

CONDITIONS OF EFFECTIVENESS AND LENDING

 

SECTION 4.1.                                               Effectiveness.  The effectiveness of this Agreement is
subject to the satisfaction of the following conditions:

 

(a)                                  Credit
Agreement.  The
Administrative Agent shall have received this Agreement, executed and delivered
by a duly authorized officer of CBS and CBS Operations.

 

54

 

(b)                                 Closing
Certificate.  The
Administrative Agent shall have received a Closing Certificate, substantially
in the form of Exhibit E, of CBS and CBS Operations, dated the Effective
Date, with appropriate insertions and attachments.

 

(c)                                  Opinion
of Counsel.  The
Administrative Agent shall have received an opinion of the general counsel of
CBS and CBS Operations, dated the Effective Date, in form and substance satisfactory
to the Administrative Agent and customary for transactions of this type.

 

(d)                                 Existing
Credit Agreement.  The
commitments under the Existing Credit Agreement shall have been terminated and
all loans thereunder shall have been prepaid or paid in full.

 

SECTION 4.2.                                               Initial
Loans to Subsidiary Borrowers.  The obligation of each Lender to make its
initial Loan to a particular Subsidiary Borrower, if designated as such on or
after the Effective Date, is subject to the satisfaction of the conditions that
(a) CBS shall have delivered to the Administrative Agent (which shall
promptly furnish to each Lender) a Subsidiary Borrower Designation for such
Subsidiary Borrower no less than five (5) Business Days prior to the
effective date of such designation, (b) such Subsidiary Borrower shall
have furnished to the Administrative Agent (i) a Subsidiary Borrower
Request, (ii) a Closing Certificate of such Subsidiary Borrower, with
appropriate insertions and attachments, (iii) one or more executed legal
opinions with respect to such Subsidiary Borrower, in form and substance
reasonably satisfactory to the Administrative Agent, and (iv) such
reasonable documentation and other information required by bank regulatory
authorities under applicable “know your customer” and anti-money laundering rules and
regulations, including without limitation the Patriot Act, to the extent
reasonably requested by the Administrative Agent or any Lender. Notwithstanding
the foregoing, a Lender shall not be required to make a Loan as part of any
borrowing by a Subsidiary Borrower organized under the laws of a jurisdiction
outside the United States of America if the making of such Loan would violate
any law or regulation to which such Lender is subject.  Each Lender agrees promptly to notify the
Administrative Agent and CBS upon becoming aware that the making of a Loan to
any such Subsidiary Borrower would violate any law or regulation to which it is
subject.  CBS may from time to time
deliver a subsequent Subsidiary Borrower Designation with respect to any
Subsidiary Borrower, countersigned by such Subsidiary Borrower, for the purpose
of terminating such Subsidiary Borrower’s designation as such, so long as, on
the effective date of such termination, all Subsidiary Borrower Obligations in
respect of such Subsidiary Borrower shall have been paid in full.  In addition, if on any date a Subsidiary
Borrower shall cease to be a Subsidiary, all Subsidiary Borrower Obligations in
respect of such Subsidiary Borrower shall automatically become due and payable
on such date and no further Loans may be borrowed by such Subsidiary Borrower
hereunder.

 

SECTION 4.3.                                               All
Credit Events.  The
obligation of each Lender to make each Loan, and the obligation of each Issuing
Lender to issue each Letter of Credit, are subject to the satisfaction of the
following conditions:

 

(a)                                  The
Administrative Agent shall have received a request for, or notice of, such
Credit Event if and as required by Section 2.3, 2.4, 2.6 or 2.7, as
applicable;

 

55

 

(b)                                 Each of the
representations and warranties made by CBS and, in the case of a borrowing by a
Subsidiary Borrower, by such Subsidiary Borrower, in Sections 3.1, 3.2, 3.4,
3.5, 3.6, 3.7, 3.8, 3.9 and 3.10 shall be true and correct in all material
respects on and as of the date of such Credit Event with the same effect as
though made on and as of such date, except to the extent such representations
and warranties expressly relate to an earlier date in which case such
representations and warranties shall be true and correct in all material
respects as of such earlier date;

 

(c)                                  At the time of
and immediately after giving effect to such Credit Event no Default or Event of
Default shall have occurred and be continuing; and

 

(d)                                 After giving
effect to such Credit Event, (i) with respect to Revolving Credit Loans, (A) the
Outstanding Revolving Extensions of Credit of each Lender shall not exceed such
Lender’s Commitment then in effect and (B) the Total Facility Exposure
shall not exceed the Total Commitment then in effect, and (ii) with
respect to Multi-Currency Revolving Loans, (A) the outstanding
Multi-Currency Revolving Loans in a particular Multi-Currency shall not exceed
the Multi-Currency Sublimit for such currency and (B) the aggregate outstanding
Multi-Currency Revolving Loans shall not exceed the Total Multi-Currency
Sublimit.

 

Each Credit Event shall be deemed to constitute a
representation and warranty by CBS on the date of such Credit Event as to the
matters specified in paragraphs (b) and (c) of this Section 4.3.

 

ARTICLE V

COVENANTS

 

CBS covenants and agrees with each Lender that, as
long as the Commitments shall be in effect or the principal of or interest on
any Loan shall be unpaid, or there shall be any Aggregate LC Exposure, unless
the Required Lenders shall otherwise consent in writing:

 

SECTION 5.1.                                               Financial
Statements.  CBS shall
deliver to each of the Lenders:

 

(a)                                  within 45 days
after the end of each of the first three quarterly fiscal periods of each
fiscal year of CBS, consolidated statements of operations and cash flows of CBS
and its Consolidated Subsidiaries for such period and for the period from the
beginning of the respective fiscal year to the end of such period, and the
related consolidated balance sheet as at the end of such period, setting forth
in each case in comparative form the corresponding consolidated figures for the
corresponding period in the preceding fiscal year, accompanied by a certificate
of a Financial Officer of CBS which certificate shall state that such financial
statements fairly present the consolidated financial condition and results of
operations of CBS and its Consolidated Subsidiaries in accordance with GAAP as
at the end of, and for, such period, subject to normal year-end audit adjustments;
provided, that the requirement herein for the furnishing of such quarterly
financial statements may be fulfilled by providing to the Lenders the report of
CBS to the SEC on Form 10-Q for the applicable quarterly period,
accompanied by the officer’s certificate described in the last paragraph of
this Section 5.1;

 

56

 

(b)           within 90 days after the end of each fiscal year of CBS,
consolidated statements of operations and cash flows of CBS and its
Consolidated Subsidiaries for such year and the related consolidated balance
sheet as at the end of such year, setting forth in comparative form the
corresponding consolidated figures for the preceding fiscal year, and
accompanied by an opinion thereon (unqualified as to the scope of the audit) of
independent certified public accountants of recognized national standing, which
opinion shall state that such consolidated financial statements fairly present
the consolidated financial condition and results of operations of CBS and its
Consolidated Subsidiaries as at the end of, and for, such fiscal year; provided, that
the requirement herein for the furnishing of annual financial statements may be
fulfilled by providing to the Lenders the report of CBS to the SEC on Form 10-K
for the applicable fiscal year;

 

(c)           promptly upon their becoming publicly available, copies of
all registration statements and regular periodic reports (including without
limitation any and all reports on Form 8-K), if any, which CBS or any of
its Subsidiaries shall have filed with the SEC or any national securities
exchange;

 

(d)           promptly upon the mailing thereof to the shareholders of
CBS generally, copies of all financial statements, reports and proxy statements
so mailed;

 

(e)           within 30 days after a Responsible Officer of CBS knows or
has reason to believe that any of the events or conditions specified below with
respect to any Plan or Multiemployer Plan have occurred or exist which would
reasonably be expected to result in a Material Adverse Effect, a statement
signed by a senior financial officer of CBS setting forth details respecting
such event or condition and the action, if any, which CBS or its ERISA
Affiliate proposes to take with respect thereto (and a copy of any report or
notice required to be filed with or given to PBGC by CBS or an ERISA Affiliate
with respect to such event or condition):

 

(i)            any reportable
event, as defined in Section 4043(c) of ERISA and the regulations
issued thereunder, with respect to a Plan, as to which PBGC has not by
regulation waived the requirement of Section 4043(a) of ERISA that it
be notified within 30 days of the occurrence of such event; provided, that a failure to meet the
minimum funding standards of Section 412 or 430 of the Code or Section 302
of ERISA shall be a reportable event regardless of the issuance of any waiver
in accordance with Section 412(c) of the Code or Section 302(c) of
ERISA;

 

(ii)           the filing under Section 4041
of ERISA of a notice of intent to terminate any Plan or the termination of any
Plan;

 

(iii)          the termination
under Section 4041A, or the institution by PBGC of proceedings under Section 4042(a) of
ERISA for the termination of, or the appointment of a trustee to administer
under Section 4042(b) of ERISA any Plan, or the receipt by CBS or any
ERISA Affiliate of a notice from a Multiemployer Plan that such action has been
taken by PBGC with respect to such Multiemployer Plan;

 

57

 

(iv)          the complete or
partial withdrawal by CBS or any ERISA Affiliate under Section 4201 or
4204 of ERISA from a Multiemployer Plan, or the receipt by CBS or any ERISA Affiliate
of notice from a Multiemployer Plan that it is in reorganization or insolvency
pursuant to Section 4241 or 4245 of ERISA or that it intends to terminate
or has terminated under Section 4041A of ERISA;

 

(v)           the institution of a
proceeding by a fiduciary of any Multiemployer Plan against CBS or any ERISA
Affiliate to enforce Section 515 of ERISA, which proceeding is not
dismissed within 30 days;

 

(vi)          a failure to make a
required installment or other payment with respect to a Plan (within the
meaning of Section 430(k) of the Code), in which case the notice
required hereunder shall be provided within 10 days after the due date for
filing notice of such failure with PBGC; and

 

(vii)         a determination that
any Plan is in “at risk” status (within the meaning of Section 430 of the
Code or Title IV of ERISA) or a determination that any Multiemployer Plan is “insolvent”
(within the meaning of Section 4245 of ERISA), “in reorganization” (within
the meaning of Section  4241 of ERISA), or in “endangered” or “critical”
status (within the meaning of Section 432 of the Code or Section 305
or Title IV of ERISA); and

 

(f)            promptly after a Responsible Officer of CBS knows or has
reason to believe that any Default or Event of Default has occurred, a notice
of such Default or Event of Default describing it in reasonable detail and,
together with such notice or as soon thereafter as possible, a description of
the action that CBS has taken and proposes to take with respect thereto;

 

(g)           promptly after a Responsible Officer of CBS knows that any
change has occurred in CBS’s Debt Rating by either Rating Agency, a notice
describing such change; and

 

(h)           promptly from time to time such other information
regarding the financial condition, operations or business of CBS or any of its
Subsidiaries (including, without limitation, any Plan or Multiemployer Plan and
any reports or other information required to be filed under ERISA) as any
Lender through the Administrative Agent may reasonably request.

 

CBS will furnish to the
Administrative Agent and each Lender, at the time it furnishes each set of
financial statements pursuant to paragraph (a) or (b) above, a
certificate (which may be a copy in the case of each Lender) of a Financial
Officer of CBS (a “Compliance Certificate”)
(i) to the effect that no Default or Event of Default has occurred and is
continuing (or, if any Default or Event of Default has occurred and is
continuing, describing it in reasonable detail and describing the action that
CBS has taken and proposes to take with respect thereto), and (ii) setting
forth in reasonable detail the computations (including any pro forma calculations as described in Section 1.2(c))
necessary to determine whether CBS is in compliance with the Financial Covenant
as of the end of the respective quarterly fiscal period or fiscal year.  Each Lender hereby agrees that CBS may, in
its discretion, provide any notice, report or other information to be provided
pursuant to this Section 5.1 to such Lender by (i) electronic mail to
the electronic mail address 

 

58

 

provided by such Lender
and/or (ii) through access to a web site, including, without limitation,
www.sec.gov.

 

SECTION 5.2.                Corporate
Existence, Etc.  CBS will, and
will cause each of its Material Subsidiaries to, preserve and maintain its
legal existence and all of its material rights, privileges and franchises (provided that
(a) nothing in this Section 5.2 shall prohibit any transaction
expressly permitted under Section 5.4, (b) the corporate existence of
any Subsidiary (other than a Subsidiary Borrower or CBS Operations) may be
terminated if, in the good faith judgment of the board of directors or the
chief financial officer of CBS, such termination is in the best interests of
CBS and such termination would not have a Material Adverse Effect, and (c) CBS
or such Material Subsidiary shall not be required to preserve or maintain any
such right, privilege or franchise if the board of directors of CBS or such
Material Subsidiary, as the case may be, shall determine that the preservation
or maintenance thereof is no longer desirable in the conduct of the business of
CBS or such Material Subsidiary, as the case may be); comply with the
requirements of all applicable laws, rules, regulations and orders of Governmental
Authorities (including, without limitation, all Environmental Laws) and with
all contractual obligations if failure to comply with such requirements or
obligations would reasonably be expected to result in a Material Adverse
Effect; pay and discharge all material taxes, assessments, governmental
charges, levies or other obligations of whatever nature imposed on it or on its
income or profits or on any of its Property prior to the date on which
penalties attach thereto, except for any such tax, assessment, charge, levy or
other obligation the payment of which is being contested in good faith and by
proper proceedings and against which adequate reserves are being maintained;
maintain all its Property used or useful in its business in good working order
and condition, ordinary wear and tear excepted, all as in the judgment of CBS
or such Material Subsidiary may be necessary so that the business carried on in
connection therewith may be properly and advantageously conducted at all times
(provided that CBS or such Material Subsidiary shall not be required to
maintain any such Property if the failure to maintain any such Property is, in
the judgment of CBS or such Material Subsidiary, desirable in the conduct of
the business of CBS or such Material Subsidiary); keep proper books of records
and accounts in which entries that are full, true and correct in all material
respects shall be made in conformity with GAAP; and permit representatives of
any Lender, during normal business hours upon reasonable advance notice, to
inspect any of its books and records and to discuss its business and affairs
with its Financial Officers or their designees, all to the extent reasonably
requested by such Lender.

 

SECTION 5.3.                Insurance.  CBS will, and will cause each of its Material
Subsidiaries to, keep insured by financially sound and reputable insurers all
Property of a character usually insured by corporations engaged in the same or
similar business and similarly situated against loss or damage of the kinds and
in the amounts consistent with prudent business practice and carry such other
insurance as is consistent with prudent business practice (it being understood
that self-insurance shall be permitted to the extent consistent with prudent
business practice).

 

SECTION 5.4.                Prohibition of
Fundamental Changes.  CBS will
not, and will not permit any of its Material Subsidiaries to, (i) enter
into any transaction of merger, consolidation, liquidation or dissolution or (ii) Dispose
of, in one transaction or a series of related transactions, all or a
substantial part of the consolidated assets of CBS and its 

 

59

 

Subsidiaries
taken as a whole, whether now owned or hereafter acquired (excluding (x) financings
by way of sales of receivables or inventory, (y) inventory or other
Property Disposed of in the ordinary course of business and (z) obsolete
or worn-out Property, tools or equipments no longer used or useful in its
business).  Notwithstanding the foregoing
provisions of this Section 5.4:

 

(a)           any Subsidiary of CBS may be merged or consolidated with
or into: (i) CBS if CBS shall be the continuing or surviving corporation
or (ii) any other such Subsidiary; provided, that (x) if any such transaction
shall be between a Subsidiary that is not a Wholly Owned Subsidiary and a
Wholly Owned Subsidiary, such Wholly Owned Subsidiary shall be the continuing
or surviving corporation and (y) if any such transaction shall be between
a Subsidiary and a Subsidiary Borrower, the continuing or surviving corporation
shall be a Subsidiary Borrower;

 

(b)           any Subsidiary of CBS may distribute, dividend or Dispose
of any of or all its Property (upon voluntary liquidation or otherwise) to CBS
or a Wholly Owned Subsidiary of CBS;

 

(c)           CBS may merge or consolidate with or into any other Person
(including, without limitation, CBS Operations) if (i) either (x) CBS
is the continuing or surviving corporation or (y) the corporation formed
by such consolidation or into which CBS is merged shall be a corporation organized
under the laws of the United States of America, any State thereof or the
District of Columbia and shall expressly assume the obligations of CBS
hereunder pursuant to a written agreement and shall have delivered to the
Administrative Agent such agreement and a certificate of a Responsible Officer
and an opinion of counsel to the effect that such merger or consolidation
complies with this Section 5.4(d), and (ii) after giving effect
thereto and to any repayment of Loans to be made upon consummation thereof (it
being expressly understood that no repayment of Loans is required solely by
virtue thereof), no Default or Event of Default shall have occurred and be
continuing;

 

(d)           any Subsidiary of CBS may merge or consolidate with or
into any other Person if, after giving effect thereto and to any repayment of
Loans to be made upon the consummation thereof (it being expressly understood
that, except as otherwise expressly provided in Section 4.2 with respect
to Subsidiary Borrowers, no repayment of Loans is required solely by virtue
thereof), no Default or Event of Default shall have occurred and be continuing;
and

 

(e)           CBS or any Subsidiary of CBS may Dispose of its Property
if, after giving effect thereto and to any repayment of Loans to be made upon
the consummation thereof (it being expressly understood that, except as
otherwise expressly provided in Section 4.2 with respect to Subsidiary
Borrowers, no repayment of Loans is required solely by virtue thereof), no
Default or Event of Default shall have occurred and be continuing.

 

SECTION 5.5.                Limitation on
Liens.  CBS shall not,
directly or indirectly, create or suffer to exist, or permit any of its
Subsidiaries to create or suffer to exist, any Lien upon or with respect to any
of its Properties, whether now owned or hereafter acquired, or 

 

60

 

assign,
or permit any of its Subsidiaries to assign, any right to receive income, in
each case to secure or provide for the payment of any Indebtedness of any
Person, except:

 

(a)           purchase money Liens or purchase money security interests
upon or in any Property acquired or held by CBS or any Subsidiary of CBS in the
ordinary course of business to secure the purchase price of such Property or to
secure Indebtedness incurred solely for the purpose of financing the
acquisition of such Property;

 

(b)           Liens existing on Property at the time of its acquisition
(other than any such Lien created in contemplation of such acquisition);

 

(c)           Liens on Property of Persons which become or became
Subsidiaries securing Indebtedness existing, with respect to any such Person,
on the date such Person becomes or became a Subsidiary (other than any such
Lien created in contemplation of such Person becoming a Subsidiary);

 

(d)           Liens securing Indebtedness incurred by CBS or any
Subsidiary of CBS; provided, however,
that the aggregate principal amount of Indebtedness referred to in this clause (d) secured
by Liens shall not exceed $30,000,000 at any time outstanding; and

 

(e)           any Lien securing the renewal, extension or refunding of
any Indebtedness secured by any Lien permitted by clause (a), (b), (c) or (d) above
that does not extend to Indebtedness other than that which is being renewed,
extended or refunded.

 

SECTION 5.6.                Limitation on
Subsidiary Indebtedness.  CBS
will not permit any of its Subsidiaries to create, incur, assume or suffer to
exist any Indebtedness (which includes, for the purposes of this Section 5.6,
any preferred stock), except:

 

(a)           Indebtedness of any Person which is acquired by CBS or any
of its Subsidiaries after the Effective Date, which Indebtedness was
outstanding prior to the date of acquisition of such Person and was not created
in anticipation thereof;

 

(b)           any Indebtedness owing by CBS or any of its Subsidiaries
to CBS or any of its Subsidiaries (including any intercompany Indebtedness
created by the declaration of any dividend (including a note payable dividend)
by any Subsidiary to CBS or any of its other Subsidiaries);

 

(c)           Indebtedness (including backed-up commercial paper) of any
Subsidiary Borrower or CBS Operations under this Agreement;

 

(d)           Reserved;

 

(e)           Indebtedness outstanding on the Closing Date, with such
Indebtedness outstanding as of September 30, 2009 being set forth on
Schedule 5.6;

 

(f)            any replacement, renewal, refinancing or extension of any
Indebtedness permitted by Section 5.6(a) through (d) or set
forth on Schedule 5.6 that does not exceed the aggregate principal amount (plus
associated fees and expenses) of the Indebtedness being 

 

61

 

replaced, renewed, refinanced or extended
(except that accrued and unpaid interest may be part of any refinancing);

 

(g)           Indebtedness incurred to finance the acquisition,
construction or improvement of any fixed or capital assets, including Capital
Lease Obligations and any Indebtedness assumed in connection with the
acquisition of any such assets; provided that
such Indebtedness is incurred prior to or within 90 days after such
acquisition or the completion of such construction or improvement and the
principal amount of such Indebtedness does not exceed the cost of acquiring,
constructing or improving such fixed or capital assets; and

 

(h)           Indebtedness; provided, that after giving effect thereto the
aggregate principal amount of Indebtedness incurred pursuant to this paragraph (h) that
is outstanding on such date (it being understood that, for the purposes of this
paragraph (h), the term “Indebtedness”
does not include Indebtedness excepted by any of clauses (a) through (g) inclusive)
does not exceed the greater of (i) an aggregate principal amount in excess
of 5% of Consolidated Tangible Assets (measured by reference to the then latest
financial statements delivered pursuant to Section 5.1(a) or (b), as
applicable) and (ii) $500,000,000 at any time.

 

SECTION 5.7.                Financial
Covenants.  (a)  CBS
will not permit the Consolidated Coverage Ratio for any period of four
consecutive fiscal quarters to be less than 3.00 to 1.00.

 

(b)           CBS will not permit the Consolidated Leverage Ratio as of
the last day of any fiscal quarter to be more than the relevant ratio set forth
below:

 

	
  Fiscal Quarter Ended

  	
   

  	
  Ratio

  	
   

  
	
  September 30, 2009

  	
   

  	
  4.50: 1.00

  	
   

  
	
  December 31, 2009

  	
   

  	
  4.50: 1.00

  	
   

  
	
  March 31, 2010

  	
   

  	
  4.50: 1.00

  	
   

  
	
  June 30, 2010

  	
   

  	
  4.50: 1.00

  	
   

  
	
  September 30, 2010

  	
   

  	
  4.25:1.00

  	
   

  
	
  December 31, 2010

  	
   

  	
  4.00:1.00

  	
   

  
	
  March 31, 2011

  	
   

  	
  4.00:1.00

  	
   

  
	
  June 30, 2011

  	
   

  	
  3.75:1.00

  	
   

  
	
  September 30, 2011

  	
   

  	
  3.75:1.00

  	
   

  
	
  December 30, 2011 and thereafter

  	
   

  	
  3.50:1.00

  	
   

  

 

SECTION 5.8.                Use of Proceeds.  On and after the Effective Date, each
Borrower will use the proceeds of the Loans and will use the Letters of Credit
hereunder solely for general corporate purposes, including, without limitation,
acquisitions and commercial paper backup (in each case in compliance with all
applicable legal and regulatory requirements, including, without limitation,
Regulation U and the Securities Act of 1933, as amended, and the Securities
Exchange Act of 1934, as amended, and the regulations thereunder); provided, that
neither any Agent nor any Lender shall have any responsibility as to the use of
any of such proceeds.

 

62

 

SECTION 5.9.                Transactions with
Affiliates.  Excepting
transactions directly or indirectly entered into pursuant to any agreement
entered into prior to the Closing Date, or transactions contemplated by any
agreement directly or indirectly entered into prior to the Closing Date, CBS
will not, and will not permit any of its Material Subsidiaries to, directly or
indirectly enter into any material transaction with any Affiliate of CBS except
on terms at least as favorable to CBS or such Subsidiary as it could obtain on
an arm’s-length basis.

 

SECTION 5.10.              Negative Pledge
Clauses.  CBS will not, and
will not permit any of its Subsidiaries, to enter into or permit to become
effective any agreement that prohibits or limits (including by requiring the
creation of an equal and ratable Lien for another obligation) its ability to
create, incur, assume or suffer to exist any Lien upon any of its Properties or
revenues, whether now owned or hereafter acquired, to secure the CBS
Obligations (“Negative Pledges”), other than:

 

(a)           this Agreement;

 

(b)           the Existing Indentures, and any other indenture, loan or
note agreement or similar agreement under which CBS or any of the Subsidiaries
may incur Indebtedness containing a Negative Pledge no more restrictive than
that in Section 1010 of the 2008 Indenture;

 

(c)           restrictions imposed by any agreement relating to
Indebtedness or other obligations permitted to be secured under Section 5.5,
to the extent such restrictions apply only to the assets securing such
Indebtedness or other obligations;

 

(d)           restrictions in partnership, joint venture and similar
agreements and organizational documents relating to partnerships, joint
ventures and other entities owned by CBS or any Subsidiary and one or more
third parties, to the extent such restrictions apply only to the Properties or
revenues of such entities and to equity interests in such entities (or in
entities conducting no significant business other than the direct or indirect
ownership of such equity interests);

 

(e)           restrictions contained in agreements of any Subsidiary
that were in effect at the time it became a Subsidiary, so long as such
restrictions apply only to the Properties or revenues of or equity interests in
such Subsidiary (and its subsidiaries) and not to those of CBS or any other
Subsidiary;

 

(f)            customary provisions in leases and other agreements
restricting the assignment thereof;

 

(g)           agreements governing receivables securitization
transactions, capital leases and other agreements not evidencing or governing
Indebtedness containing contractual obligations which limit Liens on the assets
or revenues that are the subject of or related to the transactions provided for
in such agreements;

 

(h)           agreements of Foreign Subsidiaries, to the extent the
restrictions contained therein apply only to the Properties and revenues of
Foreign Subsidiaries; and

 

63

 

(i)            agreements in effect on the date hereof and agreements
extending, renewing or replacing such agreements, or refinancing or replacing
the Indebtedness or other obligations of CBS and its Subsidiaries thereunder,
so long as such agreements do not contain Negative Pledges more restrictive
than those in the original agreements.

 

ARTICLE
VI

EVENTS OF DEFAULT

 

In case of the happening of any of the following
events (“Events of Default”);

 

(a)           (i)  any Borrower shall default in the payment
when due of any principal of any Loan or (ii) any Borrower shall default
in the payment when due of any interest on any Loan, any reimbursement
obligation in respect of any LC Disbursement, any Fee or any other amount
payable by it hereunder and, in the case of this clause (ii), such default
shall continue unremedied for a period of five Business Days;

 

(b)           any representation, warranty or certification made or
deemed made herein (or in any modification or supplement hereto) by any
Borrower, or any certificate furnished to any Lender or the Administrative
Agent pursuant to the provisions hereof, shall prove to have been false or
misleading in any material respect as of the time made, deemed made or
furnished;

 

(c)           (i)  CBS shall default in the performance of any
of its obligations under Sections 5.7 or 5.8, (ii) CBS shall default in
the performance of any of its obligations under Section 5.4 and, in the
case of this clause (ii), such default shall continue unremedied for a period
of 5 days after notice thereof to CBS by the Administrative Agent or the
Required Lenders (through the Administrative Agent), or (iii) CBS shall
default in the performance of any of its other obligations under this Agreement
and, in the case of this clause (iii), such default shall continue unremedied
for a period of 15 days after notice thereof to CBS by the Administrative Agent
or the Required Lenders (through the Administrative Agent);

 

(d)           CBS or any of its Subsidiaries shall (i) fail to pay
at final maturity any Indebtedness in an aggregate amount in excess of $250,000,000,
or (ii) fail to make any payment (whether of principal, interest or
otherwise), regardless of amount, due in respect of, or fail to observe or
perform any other term, covenant, condition or agreement contained in any
agreement or instrument evidencing or governing, any such Indebtedness, in
excess of $250,000,000 if the effect of any failure referred to in this clause (ii) has
caused such Indebtedness to become due prior to its stated maturity (it being
agreed that for purposes of this paragraph (d) only, the term “Indebtedness” shall include obligations
under any interest rate protection agreement, foreign currency exchange
agreement or other interest or exchange rate hedging agreement and that the
amount of any Person’s obligations under any such agreement shall be the net
amount that such Person could be required to pay as a result of a termination
thereof by reason of a default thereunder);

 

(e)           CBS or any of its Material Subsidiaries shall admit in
writing its inability, or be generally unable, to pay its debts as such debts
become due;

 

64

 

(f)            CBS or any of its Material Subsidiaries shall (i) apply
for or consent to the appointment of, or the taking of possession by, a
receiver, trustee or liquidator of itself or of all or a substantial part of
its Property, (ii) make a general assignment for the benefit of its
creditors, (iii) commence a voluntary case under the Bankruptcy Code (as
now or hereafter in effect), (iv) file a petition seeking to take
advantage of any other law relating to bankruptcy, insolvency, reorganization,
winding-up, or composition or readjustment of debts, (v) fail to
controvert in a timely and appropriate manner, or acquiesce in writing to, any
petition filed against it in an involuntary case under the Bankruptcy Code, or (vi) take
any corporate action for the purpose of effecting any of the foregoing;

 

(g)           a proceeding or a case shall be commenced, without the
application or consent of CBS or any of its Material Subsidiaries, in any court
of competent jurisdiction, seeking (i) its liquidation, reorganization,
dissolution or winding-up, or the composition or readjustment of its debts, (ii) the
appointment of a trustee, receiver, custodian, liquidator or the like of CBS or
such Material Subsidiary or of all or any substantial part of its assets or (iii) similar
relief in respect of CBS or such Material Subsidiary under any law relating to
bankruptcy, insolvency, reorganization, winding-up, or composition or
adjustment of debts, and such proceeding or case shall continue undismissed, or
an order, judgment or decree approving or ordering any of the foregoing shall
be entered and continue unstayed and in effect, for a period of 60 or more
days; or an order for relief against CBS or such Material Subsidiary shall be
entered in an involuntary case under the Bankruptcy Code;

 

(h)           subject to Schedule VI(h), a final judgment or judgments
for the payment of money in excess of $250,000,000 in the aggregate shall be
rendered by one or more courts, administrative tribunals or other bodies having
jurisdiction against CBS and/or any of its Material Subsidiaries and the same
shall not be paid or discharged (or provision shall not be made for such
discharge), or a stay of execution thereof shall not be procured, within 60
days from the date of entry thereof and CBS or the relevant Material Subsidiary
shall not, within said period of 60 days, or such longer period during which
execution of the same shall have been stayed, appeal therefrom and cause the
execution thereof to be stayed during such appeal;

 

(i)            an event or condition specified in Section 5.1(e) shall
occur or exist with respect to any Plan or Multiemployer Plan and, as a result
of such event or condition, together with all other such events or conditions,
CBS or any ERISA Affiliate shall incur or shall be reasonably likely to incur a
liability to a Plan, a Multiemployer Plan or PBGC (or any combination of the
foregoing) which would constitute a Material Adverse Effect; or

 

(j)            the guarantee (i) by CBS contained in Section 8.1
shall cease, for any reason, to be in full force and effect or CBS shall so
assert or (ii) by CBS Operations contained in Section 8.2 shall
cease, for any reason except pursuant to Section 8.2(g), to be in full
force and effect or CBS Operations shall so assert;

 

then and in every such event
(other than an event with respect to CBS described in paragraph (f) or (g) above),
and at any time thereafter during the continuance of such event, the
Administrative Agent may, and at the request of the Required Lenders shall, by
notice to CBS, take any or all of the following actions, at the same or
different times: (I) terminate forthwith the Commitments, (II) declare
the Loans then outstanding to be forthwith due and payable in whole or in part,

 

65

 

whereupon the principal of
the Loans so declared to be due and payable, together with accrued interest
thereon and any unpaid accrued Fees and all other liabilities of each Borrower
accrued hereunder, shall become forthwith due and payable, without presentment,
demand, protest or any other notice of any kind, all of which are hereby
expressly waived by each Borrower, anything contained herein to the contrary
notwithstanding, and (III) require that CBS deposit cash with the
Administrative Agent, in an amount equal to the Aggregate LC Exposure, as
collateral security for the repayment of any future LC Disbursements; and in
any event with respect to any Borrower described in paragraph (f) or (g) above,
(A) if such Borrower is CBS, the Commitments shall automatically terminate
and the principal of the Loans then outstanding, together with accrued interest
thereon and any unpaid accrued Fees and all other liabilities of each Borrower
accrued hereunder, shall automatically become due and payable and CBS shall be
required to deposit cash with the Administrative Agent, in an amount equal to
the Aggregate LC Exposure, as collateral security for the repayment of any
future drawings under the Letters of Credit and (B) if such Borrower is a
Subsidiary Borrower, the principal of the Loans made to such Subsidiary
Borrower then outstanding, together with accrued interest thereon and all other
liabilities of such Subsidiary Borrower accrued hereunder, shall automatically
become due and payable and such Subsidiary Borrower shall be required to
deposit cash with the Administrative Agent, in an amount equal to the
outstanding Letters of Credit issued to such Subsidiary Borrower, as collateral
security for the repayment of any future drawings under the Letters of Credit,
in each case without presentment, demand, protest or any other notice of any
kind, all of which are hereby expressly waived by each Borrower, anything
contained herein to the contrary notwithstanding.

 

ARTICLE
VII

THE AGENTS

 

In order to expedite the transactions contemplated
by this Agreement, each Agent is hereby appointed to act as Agent on behalf of
the Lenders.  Each of the Lenders and the
Issuing Lenders hereby irrevocably authorizes the Administrative Agent to take
such actions on its behalf and to exercise such powers as are specifically
delegated to the Administrative Agent by the terms and provisions hereof,
together with such actions and powers as are reasonably incidental thereto.  The Administrative Agent is hereby expressly
authorized by the Lenders and the Issuing Lenders, without hereby limiting any
implied authority, (a) to receive on behalf of the Lenders and Issuing
Lenders all payments of principal of and interest on the Loans and the LC
Disbursements and all other amounts due to the Lenders and the Issuing Lenders
hereunder, and promptly to distribute to each Lender and Issuing Lender its
proper share of each payment so received; (b) to give notice on behalf of
each of the Lenders to the Borrowers of any Event of Default specified in this
Agreement of which the Administrative Agent has actual knowledge acquired in
connection with its agency hereunder; and (c) to distribute to each Lender
and Issuing Lender copies of all notices, financial statements and other
materials delivered by any Borrower pursuant to this Agreement as received by
the Administrative Agent.

 

Neither any Agent nor any of its directors,
officers, employees or agents shall be liable as such for any action taken or omitted
by any of them except for its or his own gross negligence or willful
misconduct, or be responsible for any statement, warranty or representation
herein or the contents of any document delivered in connection herewith, or be
required to ascertain or to make any inquiry concerning the performance or
observance by any Borrower of

 

66

 

 

any of the terms,
conditions, covenants or agreements contained in this Agreement.  The Agents shall not be responsible to the
Lenders for the due execution, genuineness, validity, enforceability or
effectiveness of this Agreement or other instruments or agreements.  None of the Agents, the Borrowers or CBS
Operations shall be subject to any fiduciary or other implied duties,
regardless of whether a Default or an Event of Default has occurred and is
continuing, and no provision in the Loan Documents and no course of dealing
between the parties hereto shall be deemed to create any fiduciary duty owing
to any Agent, any Lender, any Borrower, CBS Operations or any other Subsidiary,
or any of their respective Affiliates, by any party hereto.  The Administrative Agent shall in all cases
be fully protected in acting, or refraining from acting, in accordance with
written instructions signed by the Required Lenders (or, when expressly
required hereby, all the Lenders) and, except as otherwise specifically
provided herein, such instructions and any action or inaction pursuant thereto
shall be binding on all the Lenders and the Issuing Lenders.  The Administrative Agent shall, in the
absence of knowledge to the contrary, be entitled to rely on any instrument or
document believed by it in good faith to be genuine and correct and to have
been signed or sent by the proper Person or Persons.  Neither the Agents nor any of their
directors, officers, employees or agents shall have any responsibility to any
Borrower on account of the failure of or delay in performance or breach by any
Lender or Issuing Lender of any of its obligations hereunder or to any Lender
or Issuing Lender on account of the failure of or delay in performance or
breach by any other Agent, any other Lender or Issuing Lender or any Borrower
of any of their respective obligations hereunder or in connection
herewith.  The Administrative Agent may
execute any and all duties hereunder by or through agents or employees and shall
be entitled to rely upon the advice of legal counsel selected by it with
respect to all matters arising hereunder and shall not be liable for any action
taken or suffered in good faith by it in accordance with the advice of such
counsel.

 

The Lenders and the Issuing Lenders hereby acknowledge
that the Administrative Agent shall be under no duty to take any discretionary
action permitted to be taken by it pursuant to the provisions of this Agreement
unless it shall be requested in writing to do so by the Required Lenders.

 

Subject to the appointment and acceptance of a
successor Administrative Agent as provided below, the Administrative Agent may
resign at any time by notifying the Lenders, the Issuing Lenders and the
Borrowers.  Upon any such resignation,
the Required Lenders shall have the right to appoint from the Lenders a
successor.  If no successor shall have
been so appointed by the Required Lenders and shall have accepted such
appointment within 30 days after the retiring Administrative Agent gives notice
of its resignation, then the retiring Administrative Agent may, on behalf of
the Lenders, appoint from the Lenders a successor Administrative Agent which
shall be a bank with an office in New York, New York, having a combined capital
and surplus of at least $500,000,000 or an affiliate of any such bank, which
successor shall be acceptable to CBS (such acceptance not to be unreasonably
withheld).  Upon the acceptance of any
appointment as Administrative Agent hereunder by a successor bank, such successor
shall 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 hereunder.  After the Administrative Agent’s resignation
hereunder, the provisions of this Article and Section 9.5 shall
continue in effect for its benefit in respect of any actions taken or omitted
to be taken by it while it was acting as Administrative Agent.

 

67

 

With respect to the Loans made by them and their LC
Exposure hereunder, the Agents in their individual capacity and not as Agents
shall have the same rights and powers as any other Lender and may exercise the
same as though they were not Agents, and the Agents and their affiliates may
accept deposits from, lend money to and generally engage in any kind of
business with the Borrowers or any of their respective Subsidiaries or any
Affiliate thereof as if they were not Agents.

 

Each Lender agrees (i) to reimburse the Administrative
Agent in the amount of its pro rata share
(based on its Total Facility Percentage or, after the date on which the Loans
shall have been paid in full, based on its Total Facility Percentage
immediately prior to such date) of any reasonable, out-of-pocket expenses
incurred for the benefit of the Lenders by the Administrative Agent, including
reasonable counsel fees and compensation of agents and employees paid for
services rendered on behalf of the Lenders, which shall not have been
reimbursed by or on behalf of any Borrower and (ii) to indemnify and hold
harmless the Administrative Agent and any of its directors, officers, employees
or agents, in the amount of such pro rata share,
from and against any and all liabilities, taxes, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever which may be imposed on, incurred by or asserted
against it in its capacity as Administrative Agent in any way relating to or
arising out of this Agreement or any action taken or omitted by it under this
Agreement, to the extent the same shall not have been reimbursed by or on
behalf of CBS; provided, that no Lender shall be liable to the Administrative Agent or
any such director, officer, employee or agent for any portion of such
liabilities, taxes, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting from the gross
negligence or willful misconduct of the Administrative Agent or any of its
directors, officers, employees or agents.

 

Each Lender and Issuing Lender acknowledges that it
has, independently and without reliance upon the Agents or any other Lender or
Issuing 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 Lender and Issuing
Lender also acknowledges that it will, independently and without reliance upon
any Agent or any other Lender or Issuing Lender and based on such documents and
information as it shall from time to time deem appropriate, continue to make
its own decisions in taking or not taking action under or based upon this
Agreement, any related agreement or any document furnished hereunder or
thereunder.

 

Neither the Co-Documentation Agents, the Syndication
Agent, the Joint Lead Arrangers nor any managing agent shall have any duties or
responsibilities hereunder in its capacity as such.

 

ARTICLE
VIII

GUARANTEES

 

SECTION 8.1.                CBS Guarantee.  (a)  Guarantee.  In order to
induce the Administrative Agent and the Lenders to become bound by this
Agreement and to make the Loans hereunder to the Subsidiary Borrowers, and in
consideration thereof, CBS hereby unconditionally and irrevocably guarantees,
as primary obligor and not merely as surety, to the 

 

68

 

Administrative
Agent, for the ratable benefit of the Lenders, the prompt and complete payment
and performance by each Subsidiary Borrower when due (whether at stated
maturity, by acceleration or otherwise) of the Subsidiary Borrower Obligations,
and CBS further agrees to pay any and all expenses (including, without
limitation, all reasonable fees, charges and disbursements of counsel) which
may be paid or incurred by the Administrative Agent or by the Lenders in
enforcing, or obtaining advice of counsel in respect of, any of their rights
under the guarantee contained in this Section 8.1(a).  The guarantee contained in this Section 8.1(a),
subject to Section 8.1(e), shall remain in full force and effect until the
Subsidiary Borrower Obligations are paid in full and the Commitments are
terminated, notwithstanding that from time to time prior thereto any Subsidiary
Borrower may be free from any Subsidiary Borrower Obligations.  CBS agrees that whenever, at any time, or
from time to time, it shall make any payment to the Administrative Agent or any
Lender on account of its liability under this Section 8.1, it will notify
the Administrative Agent and such Lender in writing that such payment is made
under the guarantee contained in this Section 8.1 for such purpose.  No payment or payments made by any Subsidiary
Borrower or any other Person or received or collected by the Administrative
Agent or any Lender from any Subsidiary Borrower or any other Person by virtue
of any action or proceeding or any setoff or appropriation or application, at
any time or from time to time, in reduction of or in payment of the Subsidiary
Borrower Obligations shall be deemed to modify, reduce, release or otherwise
affect the liability of CBS under this Section 8.1 which, notwithstanding
any such payment or payments, shall remain liable for the unpaid and
outstanding Subsidiary Borrower Obligations until, subject to Section 8.1(e),
the Subsidiary Borrower Obligations are paid in full and the Commitments are
terminated.  Notwithstanding any other
provision herein, the maximum liability of CBS under this Section 8.1
shall in no event exceed the amount which can be guaranteed by CBS under
applicable law.

 

(b)           No Subrogation, etc.  Notwithstanding any payment or payments made
by CBS hereunder, or any setoff or application of funds of CBS by the
Administrative Agent or any Lender, CBS shall not be entitled to be subrogated
to any of the rights of the Administrative Agent or any Lender against any
Subsidiary Borrower or against any collateral security or guarantee or right of
offset held by the Administrative Agent or any Lender for the payment of the
Subsidiary Borrower Obligations, nor shall CBS seek or be entitled to seek any
contribution, reimbursement, exoneration or indemnity from or against any
Subsidiary Borrower in respect of payments made by CBS hereunder, until all
amounts owing to the Administrative Agent and the Lenders by the Subsidiary
Borrowers on account of the Subsidiary Borrower Obligations are paid in full
and the Commitments are terminated.  So
long as the Subsidiary Borrower Obligations remain outstanding, if any amount
shall be paid by or on behalf of any Subsidiary Borrower or any other Person to
CBS on account of any of the rights waived in this Section 8.1, such
amount shall be held by CBS in trust, segregated from other funds of CBS, and
shall, forthwith upon receipt by CBS, be turned over to the Administrative
Agent in the exact form received by CBS (duly indorsed by CBS to the
Administrative Agent, if required), to be applied against the Subsidiary
Borrower Obligations, whether matured or unmatured, in such order as the
Administrative Agent may determine.

 

(c)           Amendments, etc. with
respect to the Subsidiary Borrower Obligations.  CBS shall remain obligated under this Section 8.1
notwithstanding that, without any reservation of rights against CBS, and
without notice to or further assent by CBS, any demand for payment of or
reduction in the principal amount of any of the Subsidiary Borrower Obligations
made by 

 

69

 

the Administrative Agent or any Lender may be
rescinded by the Administrative Agent or such Lender, and any of the Subsidiary
Borrower Obligations continued, and the Subsidiary Borrower Obligations, or the
liability of any other party upon or for any part thereof, or any collateral
security or guarantee therefor or right of offset with respect thereto, may,
from time to time, in whole or in part, be renewed, extended, amended,
modified, accelerated, compromised, waived, surrendered or released by the
Administrative Agent or any Lender, and this Agreement and any other documents
executed and delivered in connection herewith may be amended, modified,
supplemented or terminated, in whole or in part, as the Required Lenders (or
all Lenders, as the case may be) may deem advisable from time to time, and any
collateral security, guarantee or right of offset at any time held by the
Administrative Agent or any Lender for the payment of the Subsidiary Borrower
Obligations may be sold, exchanged, waived, surrendered or released.  Neither the Administrative Agent nor any
Lender shall have any obligation to protect, secure, perfect or insure any lien
at any time held by it as security for the Subsidiary Borrower Obligations or
for the guarantee contained in this Section 8.1 or any property subject
thereto.

 

(d)           Guarantee Absolute and
Unconditional.  CBS waives any
and all notice of the creation, renewal, extension or accrual of any of the
Subsidiary Borrower Obligations and notice of or proof of reliance by the
Administrative Agent or any Lender upon the guarantee contained in this Section 8.1
or acceptance of the guarantee contained in this Section 8.1; the Subsidiary
Borrower Obligations shall conclusively be deemed to have been created,
contracted or incurred, or renewed, extended, amended or waived, in reliance
upon the guarantee contained in this Section 8.1; and all dealings between
CBS or the Subsidiary Borrowers, on the one hand, and the Administrative Agent
and the Lenders, on the other, shall likewise be conclusively presumed to have
been had or consummated in reliance upon the guarantee contained in this Section 8.1.  CBS waives diligence, presentment, protest,
demand for payment and notice of default or nonpayment to or upon CBS or any
Subsidiary Borrower with respect to the Subsidiary Borrower Obligations.  The guarantee contained in this Section 8.1
shall be construed as a continuing, absolute and unconditional guarantee of
payment without regard to (a) the validity or enforceability of this
Agreement, any of the Subsidiary Borrower Obligations or any collateral
security therefor or guarantee or right of offset with respect thereto at any
time or from time to time held by the Administrative Agent or any Lender, (b) the
legality under applicable requirements of law of repayment by the relevant
Subsidiary Borrower of any Subsidiary Borrower Obligations or the adoption of
any requirement of law purporting to render any Subsidiary Borrower Obligations
null and void, (c) any defense, setoff or counterclaim (other than a
defense of payment or performance by the applicable Subsidiary Borrower) which
may at any time be available to or be asserted by CBS against the
Administrative Agent or any Lender, or (d) any other circumstance
whatsoever (with or without notice to or knowledge of CBS or any Subsidiary
Borrower) which constitutes, or might be construed to constitute, an equitable
or legal discharge of any Subsidiary Borrower for any of its Subsidiary
Borrower Obligations, or of CBS under the guarantee contained in this Section 8.1,
in bankruptcy or in any other instance. 
When the Administrative Agent or any Lender is pursuing its rights and
remedies under this Section 8.1 against CBS, the Administrative Agent or
any Lender may, but shall be under no obligation to, pursue such rights and
remedies as it may have against any Subsidiary Borrower or any other Person or
against any collateral security or guarantee for the Subsidiary Borrower
Obligations or any right of offset with respect thereto, and any failure by the
Administrative Agent or any Lender to pursue such other rights or remedies or
to collect any payments from any Subsidiary Borrower or any such other Person
or to realize upon any such collateral security or guarantee or 

 

70

 

to exercise any such right of offset, or any
release of any Subsidiary Borrower or any such other Person or of any such
collateral security, guarantee or right of offset, shall not relieve CBS of any
liability under this Section 8.1, and shall not impair or affect the
rights and remedies, whether express, implied or available as a matter of law,
of the Administrative Agent and the Lenders against CBS.

 

(e)           Reinstatement.  The guarantee contained in this Section 8.1
shall continue to be effective, or be reinstated, as the case may be, if at any
time payment, or any part thereof, of any of the Subsidiary Borrower
Obligations is rescinded or must otherwise be restored or returned by the
Administrative Agent or any Lender upon the insolvency, bankruptcy,
dissolution, liquidation or reorganization of any Subsidiary Borrower or upon
or as a result of the appointment of a receiver, intervenor or conservator of,
or trustee or similar officer for, any Subsidiary Borrower or any substantial
part of its property, or otherwise, all as though such payments had not been
made.

 

(f)            Payments.  CBS hereby agrees that any payments in
respect of the Subsidiary Borrower Obligations pursuant to this Section 8.1
will be paid to the Administrative Agent without setoff or counterclaim in
Dollars at the office of the Administrative Agent specified in Section 9.1.  Notwithstanding the foregoing, any payments
in respect of the Subsidiary Borrower Obligations pursuant to this Section 8.1
with respect to any Loan denominated in any Foreign Currency (including
principal of or interest on any such Loan or other amounts) hereunder shall be
made without setoff or counterclaim to the Administrative Agent at its offices
at J.P. Morgan Europe Limited, 125 London Wall, London, England EC2Y 5AJ,
United Kingdom, in the relevant Foreign Currency and in immediately available
funds.

 

SECTION 8.2.                CBS Operations
Guarantee.  (a)  Guarantee. 
In order to induce the Administrative Agent and the Lenders to become
bound by this Agreement and to make the Loans hereunder to CBS, and in
consideration thereof, CBS Operations hereby unconditionally and irrevocably
guarantees, as primary obligor and not merely as surety, to the Administrative
Agent, for the ratable benefit of the Lenders, the prompt and complete payment
and performance by CBS when due (whether at stated maturity, by acceleration or
otherwise) of the CBS Obligations, and CBS Operations further agrees to pay any
and all expenses (including, without limitation, all reasonable fees, charges
and disbursements of counsel) which may be paid or incurred by the
Administrative Agent or by the Lenders in enforcing, or obtaining advice of counsel
in respect of, any of their rights under the guarantee contained in this Section 8.2(a).  The guarantee contained in this Section 8.2(a),
subject to Section 8.2(e), shall remain in full force and effect until the
CBS Obligations are paid in full and the Commitments are terminated,
notwithstanding that from time to time prior thereto CBS may be free from any
CBS Obligations.  CBS Operations agrees
that whenever, at any time, or from time to time, it shall make any payment to
the Administrative Agent or any Lender on account of its liability under this Section 8.2,
it will notify the Administrative Agent and such Lender in writing that such
payment is made under the guarantee contained in this Section 8.2 for such
purpose.  No payment or payments made by
CBS or any other Person or received or collected by the Administrative Agent or
any Lender from CBS or any other Person by virtue of any action or proceeding
or any setoff or appropriation or application, at any time or from time to
time, in reduction of or in payment of the CBS Obligations shall be deemed to
modify, reduce, release or otherwise affect the liability of CBS Operations
under this Section 8.2 which, notwithstanding any such payment 

 

71

 

or
payments, shall remain liable for the unpaid and outstanding CBS Obligations
until, subject to Section 8.2(e), the CBS Obligations are paid in full and
the Commitments are terminated. 
Notwithstanding any other provision herein, the maximum liability of CBS
Operations under this Section 8.2 shall in no event exceed the amount
which can be guaranteed by CBS Operations under applicable law or the amount as
a result of which the Section would not be fully enforceable against CBS
Operations.

 

(b)           No Subrogation, etc.  Notwithstanding any payment or payments made
by CBS Operations hereunder, or any setoff or application of funds of CBS
Operations by the Administrative Agent or any Lender, CBS Operations shall not
be entitled to be subrogated to any of the rights of the Administrative Agent
or any Lender against CBS or against any collateral security or guarantee or
right of offset held by the Administrative Agent or any Lender for the payment
of the CBS Obligations, nor shall CBS Operations seek or be entitled to seek
any contribution, reimbursement, exoneration or indemnity from or against CBS
in respect of payments made by CBS Operations hereunder, until all amounts
owing to the Administrative Agent and the Lenders by CBS on account of the CBS
Obligations are paid in full and the Commitments are terminated.  So long as the CBS Obligations remain
outstanding, if any amount shall be paid by or on behalf of CBS or any other
Person to CBS Operations on account of any of the rights waived in this Section 8.2,
such amount shall be held by CBS Operations in trust, segregated from other
funds of CBS Operations, and shall, forthwith upon receipt by CBS Operations,
be turned over to the Administrative Agent in the exact form received by CBS
Operations (duly indorsed by CBS Operations to the Administrative Agent, if
required), to be applied against the CBS Obligations, whether matured or
unmatured, in such order as the Administrative Agent may determine.

 

(c)           Amendments, etc. with
respect to the CBS Obligations. 
CBS Operations shall remain obligated under this Section 8.2
notwithstanding that, without any reservation of rights against CBS Operations,
and without notice to or further assent by CBS Operations, any demand for
payment of or reduction in the principal amount of any of the CBS Obligations
made by the Administrative Agent or any Lender may be rescinded by the
Administrative Agent or such Lender, and any of the CBS Obligations continued,
and the CBS Obligations, or the liability of any other party upon or for any
part thereof, or any collateral security or guarantee therefor or right of
offset with respect thereto, may, from time to time, in whole or in part, be
renewed, extended, amended, modified, accelerated, compromised, waived,
surrendered or released by the Administrative Agent or any Lender, and this
Agreement and any other documents executed and delivered in connection herewith
may be amended, modified, supplemented or terminated, in whole or in part, as
the Required Lenders (or all Lenders, as the case may be) may deem advisable
from time to time, and any collateral security, guarantee or right of offset at
any time held by the Administrative Agent or any Lender for the payment of the
CBS Obligations may be sold, exchanged, waived, surrendered or released.  Neither the Administrative Agent nor any
Lender shall have any obligation to protect, secure, perfect or insure any lien
at any time held by it as security for the CBS Obligations or for the guarantee
contained in this Section 8.2 or any property subject thereto.

 

(d)           Guarantee Absolute and
Unconditional.  CBS Operations
waives any and all notice of the creation, renewal, extension or accrual of any
of the CBS Obligations and notice of or proof of reliance by the Administrative
Agent or any Lender upon the guarantee contained 

 

72

 

in this Section 8.2 or acceptance of the
guarantee contained in this Section 8.2; the CBS Obligations shall
conclusively be deemed to have been created, contracted or incurred, or
renewed, extended, amended or waived, in reliance upon the guarantee contained
in this Section 8.2; and all dealings between CBS Operations or CBS, on
the one hand, and the Administrative Agent and the Lenders, on the other, shall
likewise be conclusively presumed to have been had or consummated in reliance
upon the guarantee contained in this Section 8.2.  CBS Operations waives diligence, presentment,
protest, demand for payment and notice of default or nonpayment to or upon CBS
Operations or CBS with respect to the CBS Obligations.  The guarantee contained in this Section 8.2
shall be construed as a continuing, absolute and unconditional guarantee of
payment without regard to (a) the validity or enforceability of this
Agreement, any of the CBS Obligations or any collateral security therefor or
guarantee or right of offset with respect thereto at any time or from time to
time held by the Administrative Agent or any Lender, (b) the legality
under applicable requirements of law of repayment by CBS of any CBS Obligations
or the adoption of any requirement of law purporting to render any CBS
Obligations null and void, (c) any defense, setoff or counterclaim (other
than a defense of payment or performance by CBS) which may at any time be
available to or be asserted by CBS Operations against the Administrative Agent
or any Lender, or (d) any other circumstance whatsoever (with or without
notice to or knowledge of CBS Operations or CBS) which constitutes, or might be
construed to constitute, an equitable or legal discharge of CBS for any of its
CBS Obligations, or of CBS Operations under the guarantee contained in this Section 8.2,
in bankruptcy or in any other instance. 
When the Administrative Agent or any Lender is pursuing its rights and
remedies under this Section 8.2 against CBS Operations, the Administrative
Agent or any Lender may, but shall be under no obligation to, pursue such
rights and remedies as it may have against CBS or any other Person or against
any collateral security or guarantee for the CBS Obligations or any right of
offset with respect thereto, and any failure by the Administrative Agent or any
Lender to pursue such other rights or remedies or to collect any payments from
CBS or any such other Person or to realize upon any such collateral security or
guarantee or to exercise any such right of offset, or any release of CBS or any
such other Person or of any such collateral security, guarantee or right of
offset, shall not relieve CBS Operations of any liability under this Section 8.2,
and shall not impair or affect the rights and remedies, whether express,
implied or available as a matter of law, of the Administrative Agent and the
Lenders against CBS Operations.

 

(e)           Reinstatement.  The guarantee contained in this Section 8.2
shall continue to be effective, or be reinstated, as the case may be, if at any
time payment, or any part thereof, of any of the CBS Obligations is rescinded
or must otherwise be restored or returned by the Administrative Agent or any
Lender upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of CBS or upon or as a result of the appointment of a receiver,
intervenor or conservator of, or trustee or similar officer for, CBS or any
substantial part of its property, or otherwise, all as though such payments had
not been made.

 

(f)            Payments.  CBS Operations hereby agrees that any
payments in respect of the CBS Obligations pursuant to this Section 8.2
will be paid to the Administrative Agent without setoff or counterclaim in
Dollars at the office of the Administrative Agent specified in Section 9.1.  Notwithstanding the foregoing, any payments
in respect of the CBS Obligations pursuant to this Section 8.2 with
respect to any Loan denominated in any Foreign Currency (including principal of
or interest on any such Loan or other amounts) hereunder shall be made without
setoff or counterclaim to the Administrative Agent at its offices at J.P.
Morgan Europe 

 

73

 

Limited, 125 London Wall, London, England
EC2Y 5AJ, United Kingdom, in the relevant Foreign Currency and in immediately
available funds.

 

(g)           Release of Guarantee.  Notwithstanding the foregoing, the guarantee
contained in this Section 8.2 shall be released on the earlier of the date
on which (i) all notes, debentures and bonds now or hereafter issued by
CBS which carry a CBS Operations guarantee (the “Bonds”) are paid in full or (ii) the guarantees of CBS
Operations with respect to the Bonds are released.  On such date, this Section 8.2,
including without limitation Section 8.2(e), shall be deemed to have no
legal effect whatsoever.

 

ARTICLE
IX

MISCELLANEOUS

 

SECTION 9.1.                Notices.  Notices and other communications provided for
herein shall be in writing (or, where permitted to be made by telephone, shall
be confirmed promptly in writing) and shall be delivered by hand or overnight
courier service, mailed or sent by telecopier as follows:

 

(a)           if to CBS, to 51 W. 52nd Street, New
York, New York 10019, Attention of Treasurer (Telecopy No. (212) 975-6910),
with a copy to General Counsel (Telecopy No. (212) 975-4215);

 

(b)           if to CBS Operations, to 51 W. 52nd Street, New York, New York 10019, Attention of
Treasurer (Telecopy No. (212) 975-6910), with a copy to General
Counsel (Telecopy No. (212) 975-4215);

 

(c)           if to the Administrative Agent, to it at JPMorgan Chase
Bank, N.A., 270 Park Avenue, New York, New York 10017, Attention: Tina L.
Ruyter, (Telecopy No. (212) 270-5127), with a copy to (i) JPMorgan
Chase Bank, N.A., Loan and Agency Services, 1111 Fannin Street, 10th Floor, Houston, Texas 77002, Attention:  Maryann Bui (Telecopy No. (713)
750-2878) and (ii) if such notice or other communication relates to a
Multi-Currency Revolving Loan (including any Revolving Credit Borrowing Request
for a Multi-Currency Revolving Loan), J.P. Morgan Europe Limited, 125 London
Wall, London, England EC2Y 5AJ, United Kingdom, Attention:  Ching Loh (Telecopy No. 011-44-207-777-2360);

 

(d)           if to any Issuing Lender, to it at the address for notices
specified in the applicable Issuing Lender Agreement;

 

(e)           if to a Lender, to it at its address (or telecopy number)
set forth in Schedule 1.1 or in the Assignment and Acceptance pursuant to which
such Lender shall have become a party hereto; and

 

(f)            if to a Subsidiary Borrower, to it at its address set forth
in the relevant Subsidiary Borrower Request.

 

Notwithstanding the foregoing, each of CBS, any
other Borrower, the Administrative Agent, any Issuing Lender and any Lender
may, in its discretion, provide any 

 

74

 

notice, report or other
information to be provided under this Agreement to a Lender by (i) electronic
mail to the electronic mail address provided by such Lender in its
Administrative Questionnaire and/or (ii) through access to a web
site.  All notices and other
communications given to any party hereto in accordance with the provisions of
this Agreement shall be deemed to have been given on (A) the date of
receipt if delivered by hand or overnight courier service or sent by telecopy
or electronic mail, (B) the date of posting if given by web site access, (C) the
date of such telephone call, if permitted by the terms hereof and if promptly
confirmed in writing, or (D) on the date five Business Days after dispatch
by registered mail if mailed, in each case delivered, sent or mailed (properly
addressed) to such party as provided in this Section 9.1 or in accordance
with the latest unrevoked direction from such party given in accordance with
this Section 9.1.  Any party hereto
may change its address or telecopy number for notices and other communications
hereunder by written notice to the Borrowers and the Administrative Agent.

 

SECTION 9.2.                Survival of
Agreement.  All
representations and warranties made hereunder and in any certificate delivered
pursuant hereto or in connection herewith shall be considered to have been
relied upon by the Agents and the Lenders and shall survive the execution and
delivery of this Agreement and the making of the Loans and other extensions of
credit hereunder, regardless of any investigation made by the Agents or the
Lenders or on their behalf.

 

SECTION 9.3.                Binding Effect.  This Agreement shall be binding upon and
inure to the benefit of each Borrower, each Agent and each Lender and their
respective successors and assigns, except that CBS shall not have the right to
assign its rights or obligations hereunder or any interest herein without the
prior consent of all the Lenders.

 

SECTION 9.4.                Successors and
Assigns.  (a)  Whenever
in this Agreement any of the parties hereto is referred to, such reference
shall be deemed to include the successors and assigns of such party, and all
covenants, promises and agreements by or on behalf of each Borrower, any Agent
or any Lender that are contained in this Agreement shall bind and inure to the
benefit of their respective successors and assigns.

 

(b)           Each Lender may assign to one or more assignees all or a
portion of its interests, rights and obligations under this Agreement
(including all or a portion of its Commitment or Swingline Commitment and the
Loans at the time owing to it); provided, however,
that (i) except during the existence of an Event of Default under clause
(a), (f) or (g) of Article VI or in the case of an assignment to
a Lender or a Lender Affiliate (other than if at the time of such assignment,
such Lender or Lender Affiliate would be entitled to require any Borrower to
pay greater amounts under Section 2.20(a) than if no such assignment
had occurred, in which case such assignment shall be subject to the consent
requirement of this clause (i)), CBS, the Administrative Agent and each Issuing
Lender must give their prior written consent to such assignment (which consent
shall not be unreasonably withheld or delayed), (ii) (x) except in
the case of assignments to any Person that is a Lender prior to giving effect
to such assignment, the amount of the aggregate Commitments and/or Loans 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 $10,000,000 (or, if applicable,
the Dollar equivalent thereof) (or such lesser amount as may be agreed by the 

 

75

 

Administrative Agent) and (y) the amount
of the aggregate Commitments and/or Loans retained by any assigning Lender
(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
$10,000,000 (or, if applicable, the Dollar equivalent thereof) (or such lesser
amount as may be agreed by the Administrative Agent), unless (in the case of
clause (x) or (y) above) the assigning Lender’s Commitment and Loans
(other than any Competitive Loans) are being reduced to $0 pursuant to such
assignment, (iii) the assignor and assignee shall execute and deliver to
the Administrative Agent an Assignment and Acceptance, together with a
processing and recordation fee of $3,500 and (iv) the assignee, if it
shall not be a Lender, shall deliver to the Administrative Agent an
Administrative Questionnaire.  Upon
acceptance and recording pursuant to Section 9.4(e), from and after the
effective date specified in each Assignment and Acceptance, which effective
date shall be at least five Business Days after the execution thereof (or any
lesser period to which the Administrative Agent and CBS may agree), (A) the
assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Acceptance, have the rights and obligations of
a Lender under this Agreement and (B) 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 or the remaining portion of
an 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 2.15, 2.16, 2.20 and 9.5, as well as to any Fees accrued
for its account hereunder and not yet paid)). 
Notwithstanding the foregoing, any Lender or Issuing Lender assigning
its rights and obligations under this Agreement may maintain any Competitive
Loans or Letters of Credit made or issued by it outstanding at such time, and
in such case shall retain its rights hereunder in respect of any Loans or
Letters of Credit so maintained until such Loans or Letters of Credit have been
repaid or terminated in accordance with this Agreement.

 

(c)           By executing and delivering an Assignment and Acceptance,
the assigning Lender thereunder and the assignee thereunder shall be deemed to
confirm to and agree with each other and the other parties hereto as follows: (i) such
assigning Lender warrants that it is the legal and beneficial owner of the
interest being assigned thereby free and clear of any adverse claim created by
such assigning Lender, (ii) except as set forth in clause (i) above,
such assigning Lender makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with this Agreement or any other instrument or
document furnished pursuant hereto, or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement or any
other instrument or document furnished pursuant hereto or the financial
condition of CBS or any of its Subsidiaries or the performance or observance by
CBS or any of its Subsidiaries of any of its obligations under this Agreement
or any other instrument or document furnished pursuant hereto; (iii) such
assignee represents and warrants that it is legally authorized to enter into
such Assignment and Acceptance; (iv) such assignee confirms that it has
received a copy of this Agreement, together with copies of the most recent
financial statements delivered pursuant to Sections 3.2 and 5.1 and such other
documents and information as it has deemed appropriate to make its own credit analysis
and decision to enter into such Assignment and Acceptance; (v) such
assignee will independently and without reliance upon the Administrative Agent,
such assigning Lender or any other Agent or Lender and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own credit decisions in taking or not taking action under this Agreement; (vi) such
assignee appoints and authorizes the Administrative Agent to take such

 

76

 

 

action as agent on its behalf and to exercise
such powers under this Agreement as are delegated to the Administrative Agent
by the terms hereof, together with such powers as are reasonably incidental
thereto; and (vii) such assignee agrees that it will perform in accordance
with their terms all the obligations which by the terms of this Agreement are
required to be performed by it as a Lender.

 

(d)           The Administrative Agent, acting for this purpose as agent
of each Borrower, shall maintain at one of its offices in The City of New York
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 in the absence of manifest error 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.  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.

 

(e)           Upon its receipt of a duly completed Assignment and
Acceptance executed by an assigning Lender and an assignee, an Administrative
Questionnaire completed in respect of the assignee (unless the assignee shall
already be a Lender hereunder), the processing and recordation fee referred to
in paragraph (b) above and, if required, the written consent of CBS, the
Administrative Agent and each Issuing Lender to such assignment, the
Administrative Agent shall (i) accept such Assignment and Acceptance, (ii) record
the information contained therein in the Register and (iii) give prompt
notice thereof to CBS.

 

(f)            Each Lender may without the consent of any Borrower, the
Agents or any Issuing Lender sell participations to one or more banks, other
financial institutions or other entities (provided, that any such other entity is a not a
competitor of CBS or any Affiliate of CBS) all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitments
and the Loans owing to it); provided, however,
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, (iii) the
participating banks, financial institutions or other entities shall be entitled
to the benefit of (and the limitations and obligations of) the cost protection
provisions contained in Sections 2.15, 2.16 and 2.20 to the same extent as if
they were Lenders, (iv) no participant shall be entitled to receive any
greater amount pursuant to Section 2.20 than the transferor Lender would
have been entitled to receive in respect of the amount of the participation
transferred by such transferor Lender to such participant had no such transfer
occurred and (v) the Borrowers, the Agents 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, and such Lender shall
retain the sole right to enforce the obligations of each Borrower relating to
the Loans and the Letters of Credit and to approve any amendment, modification
or waiver of any provision of this Agreement (other than amendments,
modifications or waivers decreasing any fees payable hereunder or the amount of
principal of or the rate at which interest is payable on the Loans or LC
Disbursements, extending any scheduled principal payment date or date fixed for
the payment of interest on the Loans or LC Disbursements or of LC Fees or
Facility Fees, increasing the amount of or extending the Commitments or
releasing the guarantee contained in Section 8.1 or 8.2 (except in
accordance 

 

77

 

with Section 8.2(g)), in each case to
the extent the relevant participant is directly affected thereby).  Each Lender that sells a participation shall,
acting solely for this purpose as an agent of the Borrower, maintain a register
on which it enters the name and address of each participant and the principal
amounts (and stated interest) of each participant’s interest in the Loans or
other obligations under this Agreement (the “Participant
Register”). The entries in the Participant Register shall be
conclusive absent manifest error, and such Lender shall treat each person whose
name is recorded in the Participant Register as the owner of such participation
for all purposes of this Agreement notwithstanding any notice to the contrary.

 

(g)           Any Lender or participant may, in connection with any
assignment or participation or proposed assignment or participation pursuant to
this Section 9.4, disclose to the assignee or participant or proposed
assignee or participant any information relating to any Borrower furnished to
such Lender by or on behalf of such Borrower; provided, that, prior to any such disclosure of
information designated by such Borrower as confidential, each such assignee or
participant or proposed assignee or participant shall execute a Confidentiality
Agreement whereby such assignee or participant shall agree (subject to the
exceptions set forth therein) to preserve the confidentiality of such
confidential information.  A copy of each
such Confidentiality Agreement executed by an assignee shall be promptly
furnished to CBS.  It is understood that
confidential information relating to the Borrowers would not ordinarily be
provided in connection with assignments or participations of Competitive Loans.

 

(h)           Notwithstanding the limitations set forth in paragraph (b) above,
(i) any Lender may at any time assign or pledge all or any portion of its
rights under this Agreement to a Federal Reserve Bank and (ii) any Lender
which is a “fund” may at any time assign or pledge all or any portion of its
rights under this Agreement to secure such Lender’s indebtedness, in each case
without the prior written consent of any Borrower, the Administrative Agent or
any Issuing Lender; provided, that each such assignment shall be
made in accordance with applicable law and no such assignment shall release a
Lender from any of its obligations hereunder. 
In order to facilitate any such assignment, each Borrower shall, at the
request of the assigning Lender, duly execute and deliver to the assigning
Lender a registered promissory note or notes evidencing the Loans made to such
Borrower by the assigning Lender hereunder.

 

(i)            Notwithstanding anything to the contrary contained
herein, any Lender (a “Granting Bank”)
may grant to a special purpose funding vehicle (an “SPC”), identified as such in writing from time to time by
the Granting Bank to the Administrative Agent and the relevant Borrower, the
option to provide to such Borrower all or any part of any Loan that such
Granting Bank would otherwise be obligated to make to such Borrower pursuant to
this Agreement; provided, that (i) nothing herein shall constitute a commitment by
any SPC to make any Loan, and (ii) if an SPC elects not to exercise such
option or otherwise fails to provide all or any part of such Loan, the Granting
Bank shall be obligated to make such Loan pursuant to the terms hereof.  The making of a Loan by an SPC hereunder
shall utilize the Commitment of the Granting Bank to the same extent, and as
if, such Loan were made by such Granting Bank. 
Each party hereto hereby agrees that no SPC shall be liable for any
indemnity or similar payment obligation under this Agreement (all liability for
which shall remain with the Granting Bank). 
In furtherance of the foregoing, each party hereto hereby agrees (which
agreement shall survive the termination of this Agreement) that, prior to the
date that is one year and one day after the payment in full of all outstanding
commercial paper or other senior indebtedness of any SPC, it will not institute

 

78

 

against, or join any other person in
instituting against, such SPC any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings under the laws of the United States or
any State thereof.  In addition,
notwithstanding anything to the contrary contained in this Section, any SPC may
(i) with notice to, but without the prior written consent of, the relevant
Borrower, the Administrative Agent and the Issuing Lenders and without paying
any processing fee therefor, assign all or a portion of its interests in any
Loans to the Granting Bank or to any financial institutions (consented to by
such Borrower, the Administrative Agent and each Issuing Lender) providing
liquidity and/or credit support to or for the account of such SPC to support
the funding or maintenance of Loans and (ii) disclose on a confidential
basis any non-public information relating to its Loans to any rating agency,
commercial paper dealer or provider of any surety, guarantee or credit or
liquidity enhancement to such SPC.  This
section may not be amended without the written consent of any SPC which has
been identified as such by the Granting Bank to the Administrative Agent and
the relevant Borrower and which then holds any Loan pursuant to this paragraph
(i).

 

(j)            Neither CBS nor any Subsidiary Borrower shall assign or
delegate any of its rights or duties hereunder without the prior consent of all
the Lenders; provided, CBS may
assign or delegate any of its rights or duties hereunder (excepting its rights
and duties pursuant to Section 8.1) to any Subsidiary Borrower and any Subsidiary
Borrower may assign or delegate any of its rights or duties hereunder to CBS or
(excepting CBS Operations’ rights and duties pursuant to 8.2) to any other
Subsidiary Borrower, in each case without the prior consent of the Lenders
unless such assignment would adversely affect the Lenders; provided, further,
CBS may and any Subsidiary Borrower may assign or delegate any of its rights
and duties hereunder pursuant to a merger or consolidation permitted by Section 5.4(b) or
(d) without the prior consent of the Lenders.

 

SECTION 9.5.                Expenses;
Indemnity.  (a)  CBS
agrees to pay all reasonable legal and other out-of-pocket expenses incurred by
J.P. Morgan Securities Inc. and CGMI, in their capacities as Joint Lead
Arrangers, and by the Administrative Agent and their respective affiliates in
connection with the preparation, negotiation, execution and delivery of this
Agreement or in connection with any amendments, modifications or waivers of the
provisions hereof (whether or not the transactions hereby contemplated shall be
consummated) or incurred by any Agent, any Lender or any Issuing Lender in
connection with the enforcement or protection of the rights of the Agents, the
Lenders or the Issuing Lenders under this Agreement or in connection with the
Loans made or the Letters of Credit issued hereunder, including, without
limitation, the reasonable fees, charges and disbursements of Simpson Thacher &
Bartlett LLP, counsel for J.P. Morgan Securities Inc. and CGMI, in their
capacities as Joint Lead Arrangers, and the Administrative Agent, and, in
connection with any such enforcement or protection, the reasonable fees,
charges and disbursements of any other counsel for any Agent, Lender or Issuing
Lender.

 

(b)           CBS agrees to indemnify and hold harmless each Agent, each
Lender, each Issuing Lender and each of their respective directors, officers,
employees, affiliates and agents (each, an “Indemnified
Person”) against, and to reimburse each Indemnified Person, upon its
demand, for, any losses, claims, damages, liabilities or other expenses (“Losses”), to which such Indemnified Person
becomes subject insofar as such Losses arise out of or in any way relate to or
result from (i) the execution or delivery of this Agreement, any Letter of
Credit or any 

 

79

 

agreement or instrument contemplated hereby
(and any amendment hereto or thereto), the performance by the parties hereto or
thereto of their respective obligations hereunder or thereunder or the
consummation of the transactions contemplated hereby or thereby or (ii) the
use (or proposed use) of the proceeds of the Loans or other extensions of
credit hereunder, including, without limitation, Losses consisting of
reasonable legal, settlement or other expenses incurred in connection with
investigating, defending or participating in any legal proceeding relating to
any of the foregoing (whether or not such Indemnified Person is a party
thereto); provided, that the foregoing will not apply to any Losses to which an
Indemnified Person becomes subject to the extent they are found by a final
decision of a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of such Indemnified Person.  No Indemnified Person shall be liable for any
damages arising from the use by others of information or other materials
obtained through electronic, telecommunications or other information
transmission systems (provided, that the foregoing will not apply to
any Losses to the extent they are found by a final decision of a court of
competent jurisdiction to have resulted from the gross negligence or willful
misconduct of such Indemnified Person).

 

(c)           To the extent permitted by applicable law, CBS shall not
assert, and hereby waives, any claim against an Indemnified Person, on any
theory of liability, for special, indirect, consequential or punitive damages
(as opposed to direct or actual damages) arising out of, in connection with, or
as a result of, this Agreement or any agreement or instrument contemplated hereby,
any Loan or Letter of Credit or the use of the proceeds thereof.

 

(d)           Each Lender shall indemnify within ten days after demand
therefor, the Administrative Agent for the full amount of any Taxes, and CBS
for the full amount of any Excluded Taxes imposed by any Governmental Authority
which are attributable to such Lender that are payable or paid by the
Administrative Agent (other than such amounts which are paid or indemnified by
any Borrower pursuant hereto) and/or CBS, as the case may be, and all reasonable
expenses arising therefrom or with respect thereto as determined by the
indemnified party in good faith provided that no Lender shall be liable to the
indemnified party for the portion of any interest, expenses, or penalties
resulting from the gross negligence or willful misconduct of the indemnified
party or any of its directors, officers, employees or agents. A certificate as
to the amount of such payment or liability delivered to any Lender by the
Administrative Agent or CBS, as the case may be, shall be conclusive absent
manifest error.

 

(e)           The provisions of this Section 9.5 shall remain
operative and in full force and effect regardless of the expiration of the term
of this Agreement, the consummation of the transactions contemplated hereby,
the repayment of any of the Loans, the invalidity or unenforceability of any
term or provision of this Agreement or any investigation made by or on behalf
of any Agent or Lender.  All amounts
under this Section 9.5 shall be payable on written demand therefor.

 

SECTION 9.6.                Right of Setoff.  If an Event of Default shall have occurred
and be continuing, each Agent and each Lender is hereby authorized at any time
and from time to time, to the fullest extent permitted by law, to set off and
apply any and all deposits (general or special, time or demand, provisional or
final) at any time held and other indebtedness at any time owing by such Agent
or Lender to or for the credit or the account of any Borrower against any of
and all the obligations of such Borrower now or hereafter existing under this
Agreement or the 

 

80

 

Administrative
Agent Fee Letter held by such Agent or Lender which shall be due and
payable.  The rights of each Agent and
each Lender under this Section 9.6 are in addition to other rights and
remedies (including other rights of setoff) which such Agent or Lender may
have.

 

SECTION 9.7.                APPLICABLE LAW.  THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 9.8.                Waivers; Amendment.  (a)  No failure or delay of any
Agent, any Issuing Lender or any Lender in exercising any power or right
hereunder 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 a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power.  The rights and remedies of the Agents, the Issuing
Lenders and the Lenders hereunder are cumulative and are not exclusive of any
rights or remedies which they would otherwise have.  No waiver of any provision of this Agreement
or consent to any departure by any Borrower from any such provision shall in
any event be effective unless the same shall be permitted by paragraph (b) below,
and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. 
No notice or demand on any Borrower in any case shall entitle any
Borrower to any other or further notice or demand in similar or other
circumstances.

 

(b)           Neither this Agreement nor any provision hereof may be
waived, amended or modified except pursuant to an agreement in writing entered
into by the Borrowers and the Required Lenders; provided,
however, that no such agreement shall (i) reduce the amount or
extend the scheduled date of maturity of any Loan or of any installment
thereof, or reduce the stated amount of any LC Disbursement, interest or fee
payable hereunder or extend the scheduled date of any payment thereof or
increase the amount or extend the expiration date of any Commitment of any
Lender, in each case without the prior written consent of each Lender directly
affected thereby; (ii) amend, modify or waive any provision of this Section 9.8(b) or
Section 2.24(b), or reduce the percentage specified in the definition of “Required Lenders”, release the guarantee
contained in Section 8.1 or 8.2 (except in accordance with Section 8.2(g))
or consent to the assignment or delegation by CBS or any Subsidiary Borrower of
any of its rights and obligations under this Agreement (except (A) by CBS
(excepting its rights and duties pursuant to Section 8.1) to any
Subsidiary Borrower or (B) by any Subsidiary Borrower to CBS or (excepting
CBS Operations’ rights and duties pursuant to Section 8.2) to any other
Subsidiary Borrower and as set forth in Section 9.4(j)), in each case
without the prior written consent of all the Lenders; (iii) amend, modify
or waive Section 2.17(a) in a manner that would alter the pro rata
allocation of payments required thereby without the prior written consent of
all the Lenders (other than to extend the Maturity Date applicable to the Loans
and Commitments of consenting Lenders and to compensate such Lenders for
consenting to such extension; provided that (A) no amendment permitted by
this parenthetical shall reduce the amount of or defer any payment of
principal, interest or fees to non-extending Lenders and (B) the
opportunity to agree to such extension and receive such compensation shall be
offered on equal terms to all the Lenders); or (iv) amend, modify or waive
any provision of Article VII without the prior written consent of each
Agent affected thereby; provided,
further that no such agreement
shall amend, modify or otherwise affect the rights or duties of the
Administrative Agent, the Swingline Lenders or the Issuing Lenders hereunder in
such capacity without the prior written consent of the 

 

81

 

Administrative Agent, each Swingline Lender
directly affected thereby or each Issuing Lender directly affected thereby, as
the case may be.

 

SECTION 9.9.                Entire Agreement.  This Agreement (together with the Issuing
Lender Agreements, the Subsidiary Borrower Designations, the Subsidiary
Borrower Requests and the Administrative Agent Fee Letter and certain other fee
letters) constitutes the entire contract between the parties relative to the
subject matter hereof.  Any previous
agreement among the parties with respect to the subject matter hereof is
superseded by this Agreement.  Nothing in
this Agreement, expressed or implied, is intended to confer upon any party
other than the parties hereto any rights, remedies, obligations or liabilities
under or by reason of this Agreement.

 

SECTION 9.10.              WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT
OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. 
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 BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.10.

 

SECTION 9.11.              Severability.  In the event any one or more of the
provisions contained in this Agreement should be held invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not in any way be affected or
impaired thereby.  The parties shall endeavor
in good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions the economic effect of which comes as close as
possible to that of the invalid, illegal or unenforceable provisions.

 

SECTION 9.12.              Counterparts.  This Agreement may be executed in two or more
counterparts, each of which constitute an original but all of which when taken
together shall constitute but one contract, and shall become effective as
provided in Section 9.3.

 

SECTION 9.13.              Headings.
 Article and Section headings
and the Table of Contents used herein are for convenience of reference only,
are not part of this Agreement and are not to affect the construction of, or to
be taken into consideration in interpreting, this Agreement.

 

SECTION 9.14.              Jurisdiction;
Consent to Service of Process. 
(a)  Each Borrower hereby irrevocably and unconditionally
submits, for itself and its Property, to the nonexclusive jurisdiction of any
New York State court or Federal court of the United States of America sitting
in New York City, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Agreement, 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 New 

 

82

 

York
State court or, to the extent permitted by law, in 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.  Each Subsidiary
Borrower designates and directs CBS at its offices at 51 W. 52nd Street, New York, New York 10019, as its agent
to receive service of any and all process and documents on its behalf in any
legal action or proceeding referred to in this Section 9.14 in the State
of New York and agrees that service upon such agent shall constitute valid and
effective service upon such Subsidiary Borrower and that failure of CBS to give
any notice of such service to any Subsidiary Borrower shall not affect or
impair in any way the validity of such service or of any judgment rendered in
any action or proceeding based thereon. 
Nothing in this Agreement shall affect any right that any Agent or any
Lender may otherwise have to bring any action or proceeding relating to this
Agreement against any Borrower or its Properties in the courts of any
jurisdiction.

 

(b)           Each Borrower hereby irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection which it may now or hereafter have to the laying of venue of any suit,
action or proceeding arising out of or relating to this Agreement in any New
York State or Federal court.  Each of the
parties hereto hereby irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

 

(c)           Each party to this Agreement irrevocably consents to
service of process in the manner provided for notices in Section 9.1.  Nothing in this Agreement will affect the
right of any party to this Agreement to serve process in any other manner
permitted by law.

 

SECTION 9.15.              Confidentiality.  (a)  Each Lender agrees to keep
confidential and not to disclose (and to cause its affiliates, officers,
directors, employees, agents and representatives to keep confidential and not
to disclose) and, at the request of CBS (except as provided below or if such
Lender is required to retain any Confidential Information (as defined below)
pursuant to customary internal or banking practices, bank regulations or
applicable law), promptly to return to CBS or destroy the Confidential
Information and all copies thereof, extracts therefrom and analyses or other
materials based thereon, except that such Lender shall be permitted to disclose
Confidential Information (i) to such of its officers, directors,
employees, agents, affiliates and representatives as need to know such
Confidential Information in connection with such Lender’s participation in this
Agreement, each of whom shall be informed by such Lender of the confidential nature
of the Confidential Information and shall agree to be bound by the terms of
this Section 9.15; (ii) to the extent required by applicable laws and
regulations or by any subpoena or similar legal process or requested by any
Governmental Authority or agency having jurisdiction over such Lender or any
affiliate of such Lender; provided, however,
that, except in the case of disclosure to bank regulators or examiners in
accordance with customary banking practices, if legally permitted written
notice of each instance in which Confidential Information is required or
requested to be disclosed shall be furnished to CBS not less than 30 days prior
to the expected date of such disclosure or, if 30 days’ notice is not
practicable under the circumstances, as promptly as practicable under the
circumstances; (iii) to the extent such Confidential Information (A) is
or becomes publicly available other than as a result of a breach of this
Agreement, (B) becomes available to such Lender on a non-confidential
basis from a source other than a party to this Agreement or any other party
known to such Lender 

 

83

 

to
be bound by an agreement containing a provision similar to this Section 9.15
or (C) was available to such Lender on a non-confidential basis prior to
this disclosure to such Lender by a party to this Agreement or any other party
known to such Lender to be bound by an agreement containing a provision similar
to this Section 9.15; (iv) as permitted by Section 9.4(g); or (v) to
the extent CBS shall have consented to such disclosure in writing.  As used in this Section 9.15, “Confidential Information” shall mean any
materials, documents or information furnished by or on behalf of any Borrower
in connection with this Agreement designated by or on behalf of such Borrower
as confidential.

 

(b)           Each Lender (i) agrees that, except to the extent the
conditions referred to in subclause (A), (B) or (C) of clause (iii) of
paragraph (a) above have been met and as provided in paragraph (c) below,
(A) it will use the Confidential Information only in connection with its
participation in this Agreement and (B) it will not use the Confidential
Information in connection with any other matter or in a manner prohibited by
any law, including, without limitation, the securities laws of the United
States and (ii) understands that breach of this Section 9.15 might
seriously prejudice the interest of the Borrowers and that the Borrowers are
entitled to equitable relief, including an injunction, in the event of such
breach.

 

(c)           Notwithstanding anything to the contrary contained in this
Section 9.15, each Agent and each Lender shall be entitled to retain all
Confidential Information for so long as it remains an Agent or a Lender to use
solely for the purposes of servicing the credit and protecting its rights
hereunder.

 

SECTION 9.16.              Patriot Act Notice.    Each Lender and each Agent (for itself and
not on behalf of any other party) hereby notifies the Borrowers and CBS
Operations that, pursuant to the requirements of the USA Patriot Act, Title III
of Pub. L. 107-56, signed into law October 26, 2001 (the “Patriot Act”), it is required to obtain,
verify and record information that identifies the Borrowers and CBS Operations,
which information includes the name and address of the Borrowers and CBS
Operations and other information that will allow such Lender or such Agent, as
applicable, to identify the Borrowers and CBS Operations in accordance with the
Patriot Act.

 

[Remainder of the page left
blank intentionally; Signature page to follow.]

 

84

 

 

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

 

	
   

  	
  CBS
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joseph R. Ianniello

  
	
   

  	
   

  	
  Name:
  Joseph R. Ianniello

  
	
   

  	
   

  	
  Title:
  Executive Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CBS
  OPERATIONS INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joseph R. Ianniello

  
	
   

  	
   

  	
  Name:
  Joseph R. Ianniello

  
	
   

  	
   

  	
  Title:
  Executive Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A., as

  
	
   

  	
  Administrative
  Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Tina L. Ruyter

  
	
   

  	
   

  	
  Name:
  Tina L. Ruyter

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CITIBANK,
  N.A., as Syndication Agent and as a 

  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Kevin A. Ege

  
	
   

  	
   

  	
  Name:
  Kevin A. Ege

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

 

	
   

  	
  BANK
  OF AMERICA, N.A., as Co-Documentation 

  Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jay D. Marquis

  
	
   

  	
   

  	
  Name:
  Jay D. Marquis

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE
  BANK OF TOKYO-MITSUBISHI UFJ, 

  LTD., as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Harumi Kambara

  
	
   

  	
   

  	
  Name:
  Harumi Kambara

  
	
   

  	
   

  	
  Title:
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DEUTSCHE
  BANK AG NEW YORK BRANCH, 

  as Co-Documentation Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Andreas Neumeier

  
	
   

  	
   

  	
  Name:
  Andreas Neumeier

  
	
   

  	
   

  	
  Title:
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Anca Trifan

  
	
   

  	
   

  	
  Name:
  Anca Trifan

  
	
   

  	
   

  	
  Title:
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MORGAN
  STANLEY BANK, N.A., as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Melissa James

  
	
   

  	
   

  	
  Name:
  Melissa James

  
	
   

  	
   

  	
  Title:
  Authorized Signatory

  

 

2

 

	
   

  	
  THE
  ROYAL BANK OF SCOTLAND plc, as 

  Co-Documentation Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Tyler J. McCarthy

  
	
   

  	
   

  	
  Name:
  Tyler J. McCarthy

  
	
   

  	
   

  	
  Title:
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UBS
  LOAN FINANCE LLC, as Co-Documentation 

  Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Irja R. Otsa

  	
  /s/
  Mary E. Evans

  
	
   

  	
   

  	
  Name:
  Irja R. Otsa

  	
  Name:
  Mary E. Evans

  
	
   

  	
   

  	
  Title:
  Associate Director

  	
  Title:
  Associate Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SUMITOMO
  MITSUI BANKING 

  CORPORATION, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Yasuhiko Imai

  
	
   

  	
   

  	
  Name:
  Yasuhiko Imai

  
	
   

  	
   

  	
  Title:
  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE
  BANK OF NOVA SCOTIA, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Brenda S. Insull

  
	
   

  	
   

  	
  Name:
  Brenda S. Insull

  
	
   

  	
   

  	
  Title:
  Authorized Signatory

  

 

3

 

	
   

  	
  WELLS
  FARGO BANK, N.A., as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Donald P. Schwartz

  
	
   

  	
   

  	
  Name:
  Donald P. Schwartz

  
	
   

  	
   

  	
  Title:
  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GOLDMAN
  SACHS LENDING PARTNERS LLC, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Mark Walton

  
	
   

  	
   

  	
  Name:
  Mark Walton

  
	
   

  	
   

  	
  Title:
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CREDIT
  SUISSE, CAYMAN ISLANDS 

  BRANCH, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Doreen Barr

  
	
   

  	
   

  	
  Name:
  Doreen Barr

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CREDIT
  SUISSE, CAYMAN ISLANDS

  BRANCH, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Christopher Day

  
	
   

  	
   

  	
  Name:
  Christopher Day

  
	
   

  	
   

  	
  Title:
  Associate

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MIZUHO
  CORPORATE BANK, LTD., as a 

  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Raymond Ventura

  
	
   

  	
   

  	
  Name:
  Raymond Ventura

  
	
   

  	
   

  	
  Title:
  Deputy General Manager

  

 

4

 

	
   

  	
  THE
  BANK OF NEW YORK MELLON, as a 

  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas J. Tarasovich, Jr.

  
	
   

  	
   

  	
  Name:
  Thomas J. Tarasovich, Jr.

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LLOYDS
  TSB BANK plc, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Windsor Davies

  
	
   

  	
   

  	
  Name:
  Windsor Davies

  
	
   

  	
   

  	
  Title:
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Abraham Asoli

  
	
   

  	
   

  	
  Name:
  Abraham Asoli

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SOCIETE
  GENERALE, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Ambrish Thanawala

  
	
   

  	
   

  	
  Name:
  Ambrish Thanawala

  
	
   

  	
   

  	
  Title:
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION, as a 

  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tom Gunder

  
	
   

  	
   

  	
  Name: Tom Gunder

  
	
   

  	
   

  	
  Title: Senior Vice
  President

  

 

5Exhibit 10.13

 

 

NOTE PURCHASE AGREEMENT

 

THIS  NOTE PURCHASE AGREEMENT, dated as of March 29, 2007 (as
amended, modified, restated, replaced, waived, substituted, supplemented or
extended from time to time, the “Agreement”), is entered into between NRF—REINDEER LTD., a Cayman Islands exempted limited
liability company (together with its successors and permitted assigns, the “Seller”)
and WACHOVIA BANK, N.A. (LONDON BRANCH)
(together with its successors and assigns, the “Purchaser”).  Capitalized terms used herein but not defined
herein shall have the respective meanings given to such terms in Exhibit A
attached hereto.

 

RECITALS

 

Subject
to the terms of this Agreement, the Seller intends to sell and the Purchaser
intends to purchase (such purchase, a “Transaction”) all of the Seller’s
right, title and interest in and to (but none of its obligations under or with
respect to) the note identified on Exhibit B attached hereto (the “Note”)
and the related Purchased Items, with the simultaneous agreement of the Seller
to repurchase the Note and the related Purchased Items in accordance with the
terms of this Agreement.

 

Now,
therefore, based upon the foregoing, the mutual promises and agreements
contained herein and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto, intending to
be legally bound, hereby agree as follows:

 

Section 1.              Agreement to Purchase.

 

Subject
to the terms and conditions contained in this Agreement, the Seller agrees to
sell, and the Purchaser agrees to purchase, the Note and the related Purchased
Items.  The consideration for the
purchase of the Note and the related Purchased Items shall be an amount equal
to the Purchase Price for the Note; provided, however, in no
event shall the aggregate Purchase Price for the Note purchased hereunder
exceed €75,000,000.  The purchase and
sale of the Note and the related Purchased Items shall take place on March 29,
2007 or such later date to which the parties hereto may agree separately in
writing (the “Closing Date”). 
Subject to the terms and conditions contained in this Agreement, the
Purchase Price shall be paid to the Seller or its designee by wire transfer in
immediately available funds in Euros on the Closing Date to the Seller’s
Account.

 

Section 2.              Conveyance of Note.

 

(a)                                  Effective as of
the Closing Date, subject only to the Seller’s receipt of the Purchase Price
and to the terms of this Agreement, the Seller does hereby sell, transfer,
assign, set over and otherwise convey to the Purchaser all of the right, title
and interest of the Seller (but none of its obligations, which obligations
shall remain with the Seller) in and to the Note, together with all of the
Seller’s right, title and interest in and to (but none of its obligations,
which obligations shall remain with the Seller) the other Purchased Items
related thereto.  Without limiting the
effect of any other provision contained in this Agreement, the Seller’s
obligations under this Agreement shall be full recourse against the Seller.

 

 

(b)                                 No later than
the Closing Date, the Seller shall deliver to the Purchaser or its designee the
agreements, documents and instruments specified below (including all
amendments, modifications and waivers thereto) with respect to the Note and the
related Purchased Items (the “Asset File”):

 

(i)            the original executed Note accompanied by an original
executed allonge pursuant to which the Seller has endorsed the Note, without
recourse, in blank;

 

(ii)           a certificate from the applicable record keeper certifying
that, as of the Closing Date, the Seller is the registered holder of the Note
and that the applicable record keeper has been directed to deposit all Income
with respect to the Note to the Collection Account;

 

(iii)          the original Participation Pledge, endorsed in blank;

 

(iv)          a copy of the Participation Certificate, together with all
intervening assignments thereof;

 

(v)           a copy of the related Participation Agreement, together
with any intervening assignments;

 

(vi)          copies of all documents executed in connection with or
relating to the Loan or the Participation Agreement, including, without
limitation, the Intercreditor Agreement, the Mezzanine Finance Documents, the
Senior Finance Documents (provided that the Senior Finance Documents may be
delivered within ten (10) Business Days after the Closing Date) and
any other applicable servicing or pooling and servicing agreements to the
extent in the possession of, or reasonably available to, the Seller, in each
case, together with all intervening assignments thereof;

 

(vii)         an original or, if available, a copy, of all of the other
documents related to the Note and/or the Purchased Items and not specifically
identified above, together with any and all intervening assignments thereof;

 

(viii)        an original Assignment executed by the Seller in blank.

 

(c)                                  If the Note has
been approved by the Purchaser in its discretion for purchase on a wet—funded
basis (a “Wet—Funded Note”), the Seller shall deliver to the Purchaser
or its designee the items specified below:

 

(i)            no later than the Closing Date, facsimile copies of each
of the items listed in Subsection 2(b) which are required to
be included in the Asset File with respect to such Wet—Funded Note;

 

(ii)           no later than the Closing Date, an original bailee
agreement in the form annexed hereto as Exhibit C (a “Bailee
Agreement”), properly completed and executed by the Seller and a title
company, escrow company or attorney in accordance with local law and practice
in the appropriate jurisdiction of such Wet—Funded Note and acceptable to the
Purchaser in its reasonable discretion (a “Settlement Agent”); and

 

(iii)          no later than five (5) Business Days after the
Closing Date, the Asset File with respect to such Wet—Funded Note.

 

The
Purchaser shall not purchase the Wet—Funded Note until it has received items 2(c)(i) and
2(c)(ii) above.

 

2

 

(d)                                 [Reserved].

 

(e)                                  The Seller (or
an Affiliate of the Seller on its behalf) shall service the Note and the
related Purchased Items, from and after the Closing Date to the related
Repurchase Date, for the benefit of the Purchaser as the owner of the Note and
the related Purchased Items.  In
connection with such servicing, the Seller (or an Affiliate of the Seller on
its behalf) as servicer shall remit or cause to be remitted to the Purchaser
any and all Income on the Note and the related Purchased Items to the
Collection Account.  The Seller shall
also give all appropriate notices under the Note and the other Asset Documents
of Purchaser’s interests in the Note and the related Purchased Items.  In servicing the Note and the related
Purchased Items, the Seller (or an Affiliate of Seller on its behalf) as
servicer shall take all action, or cause to be taken all action, as may be
necessary to enforce, realize on and collect the Note and the related Purchased
Items, including but not limited to all related Income, all in accordance with
Applicable Law, with reasonable care and diligence, and in accordance with the
Servicing Standard; provided, however, that (i) in no event
shall the Seller, or any Affiliate of the Seller on its behalf (including,
without limitation, the Pledgor and the Guarantor), and the Seller shall not
permit NRFC Luxembourg to, take any material servicing action in respect of the
Note or the related Purchased Items or exercise any rights of the holder of the
Note or the related Purchased Items without the prior written approval of the
Purchaser, and (ii) the Seller, or any Affiliate of the Seller on its
behalf, shall consult regularly with the Purchaser with respect to any other
actions to be taken or not taken by a holder of the Note and the related
Purchased Items and in connection with such servicing and administration of the
Note and the related Purchased Items. 
Notwithstanding that the Seller may contract with an Affiliate to
service the Note and the related Purchased Items on its behalf, the Seller
shall continue to remain liable to the Purchaser as servicer under this
Agreement.

 

(f)                                    Notwithstanding
any rights of the Seller under the Bond, the Purchased Items or any other
agreement with NRFC Luxembourg, the Purchaser, either directly or by and
through the Seller or its Affiliate on its behalf, shall have the right to
exercise (i) prior to an Event of Default, subject to any additional
rights of the Purchaser under the Participation Pledge, any material
determinations, material consent rights and material approvals in connection
with the Note and the related Purchased Items in accordance with the terms of
the Asset Documents, and (ii) after an Event of Default, all
determinations, consent rights and approvals in connection with the Note and
the related Purchased Items in accordance with the terms of the Asset Documents
until such time as the Note and the related Purchased Items are repurchased by
the Seller.

 

(g)                                 All other
documents and records relating to the Note and the related Purchased Items and
the servicing thereof, which are in the Seller’s possession and are not
required to be delivered as part of the Asset File (the “Additional Asset
Documents”), shall be held by the Seller and delivered to the Purchaser
within five (5) Business Days following the Closing Date.  After the Closing Date, the Seller shall
deliver any Additional Asset Documents created, acquired or received within
five (5) Business Days of the creation, acquisition or receipt
thereof.  Additional Asset Documents
shall be deemed included in the Asset File upon the Purchaser’s receipt
thereof.

 

Section 3.              Closing.

 

The closing (the “Closing”) shall be subject
to each of the following conditions:

 

(a)                                  All of the
representations and warranties of the Seller, the Pledgor and the Guarantor set
forth in or made pursuant to the Repurchase Documents shall be true and correct
in all material respects as of the Closing Date;

 

3

 

(b)                                 The Seller
shall have delivered and released to the Purchaser or its designee all
documents and instruments required to be delivered by the Seller to the
Purchaser or its designee as set forth in Section 2 of this
Agreement;

 

(c)                                  The Purchaser
shall be in receipt of good standing certificates, secretary certificates (or
the equivalent) and copies of the Governing Documents and applicable
resolutions of the Seller, the Guarantor, the Pledgor and NRFC Luxembourg
evidencing, as applicable, the corporate or other authority for the Seller, the
Guarantor, the Pledgor and NRFC Luxembourg with respect to the execution,
delivery and performance of the Repurchase Documents and, as applicable, the
agreements in the Asset File and each of the other documents to be delivered by
the Seller, the Guarantor, the Pledgor and NRFC Luxembourg from time to time in
connection herewith or therewith;

 

(d)                                 The Purchaser
shall be in receipt of this Agreement, each Pledge and Security Agreement, the
Guaranty Agreement and the other Repurchase Documents, each duly executed by,
and delivered to, the parties thereto;

 

(e)                                  The Purchaser
shall be in receipt of current UCC or Lien searches with respect to the Seller
and the Pledgor and in the applicable jurisdiction and, if such searches reveal
the existence of any Liens, UCC termination statements or other Lien
terminations shall be filed in the appropriate jurisdiction or such Liens are
otherwise terminated on or before the Closing Date;

 

(f)                                    UCC financing
statements or other notices of Liens shall have been filed against the Seller
with respect to the Note and the related Purchased Items and against the
Pledgor with respect to the Pledged Collateral in the appropriate filing
offices;

 

(g)                                 The Purchaser
shall have completed to its satisfaction such due diligence with respect to the
Note and the related Purchased Items as it may require in its discretion;

 

(h)                                 No Applicable
Law shall prohibit or render it unlawful, and no order, judgment or decree of
Governmental Authority shall prohibit, enjoin or render it unlawful to enter
into the Transaction by the Purchaser in accordance with the provisions of this
Agreement or any other transaction contemplated herein;

 

(i)                                     The Seller
shall have delivered, or caused to have been delivered, to the Purchaser Opinions
of Counsel with respect to the Seller, the Guarantor, the Pledgor and NRFC
Luxembourg addressing corporate, authorization, execution, enforceability,
perfection, non—contravention, no conflicts and such other matters as the
Purchaser may require in its reasonable discretion;

 

(j)                                     With respect to
the Note and the related Purchased Items, the Purchaser shall have received
from the Seller a Release Letter substantially in the form of Exhibit F
attached hereto (or such other form acceptable to the Purchaser) (“Release
Letter”), releasing the current holder’s Lien with respect to the related
Note and the related Purchased Items to be sold to the Purchaser hereunder;

 

(k)                                  none of the
following shall have occurred and/or be continuing:

 

(A)          an event or events shall have occurred
in the good faith determination of the Purchaser resulting in the effective
absence of a “repo market” or related “lending market” for purchasing (subject
to repurchase) or financing debt obligations secured by commercial mortgage or
mezzanine loans or securities, or an event or events shall have occurred
resulting in the Purchaser not being able to finance the Note through the “repo

 

4

 

market”
or “lending market” with traditional counterparties at rates that would have
been reasonable prior to the occurrence of such event or events;

 

(B)           an event or events shall have
occurred resulting in the effective absence of a “securities market” for
securities backed by the Note or commercial or multifamily real property or
other collateral, or an event or events shall have occurred resulting in the
Purchaser not being able to sell securities backed directly or indirectly by
the Note or commercial or multifamily real property or other collateral at prices
that would have been reasonable prior to such event or events;

 

(C)           there shall have occurred a material
adverse change in the financial condition of the Purchaser that affects (or can
reasonably be expected to affect) materially and adversely the ability of the
Purchaser to fund its obligations under this Agreement; or

 

(D)          a
Material Adverse Effect.

 

(l)                                     All other terms
and conditions of and all duties, covenants and obligations under this
Agreement and the other Repurchase Documents required to be satisfied or
complied with on or before the Closing Date shall have been satisfied or
complied with by the Seller, the Guarantor or the Pledgor, as applicable, in
all material respects and the Seller, the Guarantor and the Pledgor shall have
the ability to comply with or satisfy all terms and conditions and perform all
duties, covenants and obligations required to be complied with or performed
after the Closing Date;

 

(m)                              The Seller
shall have executed and delivered to the addressee thereof the notices attached
hereto as Exhibits H and I and Schedules 1 and 2 to
the Participation Pledge (collectively, the “Pledge Notices”) and the Seller
shall provide evidence of same to the Purchaser;

 

(n)                                 The Seller
shall have delivered to the Purchaser evidence of the registration of the Note
in NRFC Luxembourg’s note register as provided in Subsection 4(j) of
this Agreement.

 

(o)                                 The Seller
shall have paid all fees, costs and expenses payable by it to the Purchaser
pursuant to this Agreement as of the Closing Date, including the reasonable
fees and costs of Purchaser’s legal counsel; and

 

(p)                                 The Seller
shall have delivered or caused to have been delivered to the Purchaser such
other certificates, opinions, documents, instruments and agreements as the
Purchaser may reasonably request.

 

Section 4.              Repurchase Obligation; Price
Differential; Margin Deficits.

 

(a)                                  The Seller
shall have the right at any time upon at least two (2) Business Days
prior written notice to the Purchaser to repurchase the Note and the related
Purchased Items from the Purchaser for an amount equal to the Repurchase Price
for such Note plus all other Aggregate Unpaids. 
The Seller shall pay the Repurchase Price and all other Aggregate
Unpaids outstanding to the Purchaser in immediately available funds to the
Collection Account on the Repurchase Date.

 

(b)                                 Following the
occurrence and during the continuance of (1) any default under any of the
Repurchase Documents or any of the following events:  (i) any Insolvency Proceeding with
respect to the Seller, the Guarantor, the Pledgor or NRFC Luxembourg, (ii) any
breach by the Seller, the Guarantor, the Pledgor or NRFC Luxembourg of any
representation or warranty set forth in any of the Repurchase 

 

5

 

Documents,
the Asset Documents or any other document, agreement or certificate delivered
to the Purchaser (other than with respect to a representation or warranty
described in clause (A), (B) or (C) of the proviso to the definition of Asset
Value, which representations or warranties, if untrue, shall give rise to a
right of the Purchaser to mark the related Note to market under Subsection 4(i) of
this Agreement), (iii) any failure to deliver the Asset File within the
time frame required under Subsection 2(b) or Subsection 2(c),
(iv) any failure to comply with Subsections 4(c) or 4(i),
(v) any default in the performance of any duty, agreement, obligation or
covenant of the Seller, the Guarantor, the Pledgor or NRFC Luxembourg under any
of the Repurchase Documents, the Asset Documents or any other document,
agreement or certificate delivered to the Purchaser, including, without
limitation, the obligation of the Seller to pay Price Differential, Purchase
Price and all other amounts owed hereunder or under the other Repurchase Documents
on or before the date such amounts are due under the terms of the Repurchase
Documents and/or any event resulting in a right or obligation of redemption of
the Note under condition 4 thereof and not otherwise specified in this Subsection
4(b), (vi) the occurrence of a Material Adverse Effect, (vii) other
than as contemplated under the Repurchase Documents, the Seller, the Guarantor,
the Pledgor or NRFC Luxembourg shall grant, or suffer to exist, any Lien on the
Note, the Purchased Item or Pledged Collateral (except Permitted Liens), (viii) the
Note or the Purchased Items shall not have been sold to the Purchaser, or the
Liens contemplated under the Repurchase Documents shall cease or fail to be
first priority perfected Liens on the Note, the Purchased Items or the Pledged
Collateral in favor of the Purchaser (other than as a result of the Purchaser
failing to file a UCC financing statement or continuation thereof against the
Seller or Pledgor in the applicable jurisdiction with respect to the Purchased
Items or Pledged Collateral, as applicable), (ix) the Seller, the
Guarantor, the Pledgor, NRFC Luxembourg or any other Person shall, directly or
indirectly, contest in any manner the effectiveness, validity, binding nature
or enforceability of any Repurchase Document, any Lien or security interest
thereunder or the Asset Documents or (x) the Seller, the Guarantor, the
Pledgor or NRFC Luxembourg shall admit its inability to, or its intentions not
to, perform any of its obligations, covenants or agreements under any
Repurchase Document or the Asset Documents, and/or (2) an “Event of
Default” under (A) the Master Repurchase Agreement, dated as of July 13,
2005, by and among NRFC WA Holdings, LLC, Wachovia, NorthStar Realty Finance
Corp. and others, together with all other documents and agreements executed or
delivered in connection therewith, as such agreements have been and are
amended, modified, restated, waived, replaced, substituted, supplemented or
extended from time to time (the “Wachovia Repurchase Facility”) or (B) the
Master Repurchase Agreement (VFCC) to be entered into by and among Subsidiaries
of the Guarantor, Variable Funding Capital Company (“VFCC”) and Wachovia
Capital Markets, LLC, together with all other documents and agreements executed
or delivered in connection therewith, as such agreements are amended, modified,
restated, waived, replaced, substituted, supplemented or extended from time to
time (the “VFCC Repurchase Facility”) (any default or event of default
under clauses (1) through (2) above, an “Event
of Default”), the Seller shall be required immediately upon the occurrence
thereof to repurchase the Note and the related Purchased Items by paying to the
Purchaser the aggregate Repurchase Price, all other Aggregate Unpaids and all
other Debt; provided, however, the Price Differential shall be
calculated using a Rate equal to the Default Rate until all amounts due to the
Purchaser are paid in full.  The Seller
shall pay all such amounts referred to in the previous sentence in immediately available
funds to the Collection Account within two (2) Business Days of the
occurrence of an Event of Default.

 

(c)                                  No later than
the Fixed Repurchase Date, the Seller shall repurchase the Note and the related
Purchased Items for an amount equal to the aggregate Repurchase Price plus all
other Aggregate Unpaids.  The Seller
shall pay such amounts referred to in the preceding sentence in immediately
available funds to the Collection Account on or before the date required by
this Subsection 4(c).

 

(d)                                 In connection
with any repurchase pursuant to this Section 4 and the payment of
all amounts owed under this Agreement and the other Repurchase Documents to the
Purchaser, the Purchaser shall promptly thereafter deliver to the Seller, at
the Seller’s expense, the related Asset File, Additional 

 

6

 

Asset
Documents, all other documents and instruments that were delivered by the
Seller to the Purchaser hereunder, all Income on deposit in the Collection
Account (less any amounts owed to the Purchaser) and, at the Seller’s expense,
such instruments of reconveyance (including, if the endorsement to the Note
initially delivered to the Purchaser hereunder in blank has been completed, a
further endorsement of such Note to the Seller or in blank, and, if the
Assignment initially delivered to the Purchaser hereunder in blank has been
completed, further assignment of such Assignment to the Seller or in blank) as
the Seller may reasonably request; provided, however, such
reconveyance by the Purchaser shall be without recourse to, or representation
or warranty from, the Purchaser.

 

(e)                                  Notwithstanding
that the Seller and the Purchaser intend that the Transaction hereunder be a
sale to Purchaser of the Note and other Purchased Items and for so long as the
Note has not been repurchased from the Purchaser by the Seller pursuant to this
Section 4, on each Payment Date the Seller shall pay to the
Purchaser an amount equal to the accrued Price Differential of the Transaction
through but not including each Payment Date (each such payment, a “Periodic
Advance Repurchase Payment”) less any portion thereof previously paid, if
any.  The Purchaser shall deliver to the
Seller, via email or facsimile, written notice of the required Periodic Advance
Repurchase Payment, and a detailed calculation thereof, on or prior to the
first (1st) Business Day preceding each such Payment Date.  If the Seller fails to make all or part of
the required Periodic Advance Repurchase Payment by 11:00 a.m., Charlotte,
North Carolina time, within two (2) Business Days of each such
Payment Date, the Seller shall be obligated to pay to Purchaser (in addition
to, and together with, the Periodic Advance Repurchase Payment) interest on the
unpaid amount of the Periodic Advance Repurchase Payment at a rate per annum
equal to the Default Rate until the overdue Periodic Advance Repurchase Payment
is received in full by the Purchaser.

 

(f)                                    The Purchaser
shall be entitled to receive an amount equal to all Income paid or distributed on
or in respect of the Note and the other Purchased Items, which amounts the
Seller shall deposit or cause to be deposited into the Collection Account.  The Seller hereby agrees to instruct each
applicable trustee, servicer and other Persons to transfer all Income with
respect to the Note and the other Purchased Items directly to the Collection
Account within one (1) Business Day of receipt.  On each Payment Date, any amounts received by
the Purchaser and deposited to the Collection Account since the immediately
preceding Payment Date shall be applied as follows:  first, to
the payment of all fees, costs, expenses and advances then due to the Purchaser
pursuant to the Repurchase Documents, other than the items covered in the
clauses below; second, to the payment of any
interest owed to the Purchaser at the Default Rate, third,
to the payment of accrued and unpaid Price Differential for the Transaction; fourth, without limiting the Seller’s
obligation under Subsection 4(i) to cure Margin Deficits in a
timely manner, to the Purchaser for the payment of any Margin Deficit
outstanding; fifth, to the extent any
Income includes payments or prepayments of principal, such payments shall be
applied to reduce the Repurchase Price outstanding for the Transaction; sixth, to the payment of Breakage
Costs, Costs, Increased Costs, Taxes, Additional Amounts and other amounts, if
any, then due and owing to the Purchaser pursuant to this Agreement;  and seventh,
the remainder to the Seller, for such purposes as the Seller shall determine in its discretion, subject to the Seller’s
covenants set forth herein and other requirements of the Repurchase Documents; provided,
however, if an Event of Default has occurred and is continuing, amounts
collected pursuant to this Subsection 4(f) of this Agreement
shall not be transferred to the Seller but, instead, shall be retained by the
Purchaser and applied in reduction of the Debt until paid in full.

 

(g)                                 Unless
otherwise expressly provided herein, all amounts to be paid or deposited by the
Seller hereunder shall be paid or deposited in accordance with the terms of
this Agreement no later than 3:00 p.m. on the day when due in Euros
(except any payments in connection with the Wachovia Repurchase Facility or the
VFCC Repurchase Facility, in which case the same shall be lawful money of the
United States), in immediately available funds and without deduction, set—off
or counterclaim to the Purchaser’s Account or the Collection Account, as
applicable, and if not received before such time shall 

 

7

 

be
deemed to be received on the next Business Day. 
The Seller shall, to the extent permitted by Applicable Law, pay to the
Purchaser interest on any amounts not paid within two (2) Business
Days of the date when due hereunder or under the Repurchase Documents at the
Default Rate, payable on demand; provided, however, that such
interest rate shall not at any time exceed the maximum rate permitted by
Applicable Law.  Such interest shall be
for the account of, and distributed to, the Purchaser.  All computations of interest, Price
Differential and fees hereunder shall be made on the basis of a year consisting
of 360 days for the actual number of days (including the first but excluding
the last day) elapsed.  The Seller
acknowledges that it has no rights in or to or any rights of withdrawal from
the Purchaser’s Account or from the Collection Account; provided, however,
the Seller has a right to receive payments from the Collection Account as and
to the extent provided in Subsection 4(f).

 

(h)                                 Whenever any
payment hereunder shall be stated to be due on a day other than a Business Day,
such payment shall be made on the next succeeding Business Day, and such
extension of time shall in such case be included in the computation of the
payment of the Price Differential or any fee payable hereunder.

 

(i)                                     If at any time
the Purchaser determines (based on such factors as the Purchaser determines to
rely on its discretion, including but not limited to a credit analysis of the Mortgaged
Properties and the current market conditions for the Note) that the Asset Value
of the Note is less than the aggregate Purchase Price outstanding (a “Margin
Deficit”), then the Purchaser may by notice (a “Margin Deficit Notice”)
to the Seller require the Seller to transfer to the Purchaser cash in such
amount that the aggregate Asset Value of the Note will thereupon equal or
exceed the aggregate Purchase Price outstanding.  Notwithstanding anything to the contrary in
this Agreement, the Seller shall transfer such cash to the Purchaser’s Account
no later than forty-eight (48) hours after the Margin Deficit Notice shall be
deemed to have been received under Section 11.  All cash transferred to the Purchaser
pursuant to this Subsection 4(i) shall be deposited in the
Purchaser’s Account and shall be attributed to the Transaction as the Purchaser
shall determine in its discretion.  The
Purchaser’s election, in its discretion, not to deliver a Margin Deficit Notice
at any time there is a Margin Deficit shall not in any way limit or impair its
right to deliver a Margin Deficit Notice at any time a Margin Deficit exists
(including the same or a different Margin Deficit).

 

(j)                                     The pledge of
the Note shall, by virtue of the execution of this Agreement by NRFC Luxembourg,
be acknowledged and accepted by NRFC Luxembourg and shall forthwith be
registered in NRFC Luxembourg’s note register in accordance with article 5(c) of
the Luxembourg law on financial collateral arrangements dated August 5,
2005.  In this respect, the Seller,
immediately upon the execution of this Agreement by the Seller and the
Purchaser (i) instructs and appoints the managers of NRFC Luxembourg
acting individually or as proxy to register the pledge of the Note in the
noteholders’ register of NRFC Luxembourg and (ii) undertakes to deliver to
the Purchaser a copy of the relevant pages of NRFC Luxembourg’s note
register showing that the pledge of the Note has been duly recorded.  The inscription into the noteholders’
register of NRFC Luxembourg shall be in substantially the following form:  “Pursuant to and in accordance with a Note
Purchase Agreement, dated as of March 29, 2007, between NRF—Reindeer Ltd.,
a Cayman Islands exempted limited liability company, and Wachovia Bank, N.A.
(London Branch) (as amended or modified from time to time, the “Note Purchase
Agreement”), NRF—Reindeer Ltd. has granted a pledge over a single note
representing 100% of the notes issued by NRFC Luxembourg Holdings I S.à r.l., a
Société à responsabilité limitée, as well as all notes which it may acquire in
the future, in favor of Wachovia Bank, N.A. (London Branch), as pledgee, in
order to secure the payment of the Debt (defined in the Note Purchase
Agreement).”

 

8

 

Section 5.              Representations and Warranties
of Seller.

 

The
Seller hereby represents and warrants to the Purchaser, as of the date hereof
and at all times while this Agreement and the Transaction are in full force and
effect, that:

 

(a)                                  Organization
and Good Standing.  The Seller
has been duly organized, and is validly existing, as a Cayman Islands exempted
limited liability company good standing under the laws of the Cayman Islands,
with all requisite power and authority to own or lease its Properties and
conduct its business as such business is presently conducted, and had, at all
relevant times, and now has, all necessary power, authority and legal right to
acquire, own, sell and pledge the Note and other Purchased Items.

 

(b)                                 Due
Qualification.  The Seller
is duly qualified to do business and is in good standing as a Cayman Islands
exempted limited liability company, and has obtained all necessary licenses,
permits and approvals, in all jurisdictions in which the ownership or lease of
its Property or the conduct of its business requires such qualification,
licenses or approvals.

 

(c)                                  Power and
Authority; Due Authorization; Execution and Delivery.  The Seller (i) has all necessary power,
authority and legal right (A) to execute and deliver the Repurchase
Documents to which it is a party, (B) to carry out the terms of the
Repurchase Documents to which it is a party, and (C)  to acquire, sell,
assign and pledge the Note and other Purchased Items on the terms and
conditions provided herein but subject to the terms of such Asset Documents,
and (ii) has duly authorized by all necessary corporate action (A) the
execution, delivery and performance of the Repurchase Documents to which it is
a party, and (B) the acquisition, sale, assignment and pledge of the Note
and other Purchased Items on the terms and conditions herein provided.  The Repurchase Documents to which the Seller
is a party have been duly executed and delivered by the Seller.

 

(d)                                 Binding
Obligation.  Each of the
Repurchase Documents to which the Seller is a party constitutes a legal, valid
and binding obligation of the Seller, enforceable against the Seller in
accordance with its respective terms, except as such enforceability may be
limited by Insolvency Laws and by general principles of equity (whether considered
in a suit at law or in equity).

 

(e)                                  Good Title.  The Seller represents and warrants that it is
the sole legal and beneficial owner of the Note and other Purchased Items and
that such Note and other Purchased Items are free and clear of all Liens,
participation interests and rights of others, except for Permitted Liens.

 

(f)                                    Tax Liens.  The Seller represents and warrants that there
are no delinquent federal, state, city, county or other Taxes relating to the
Seller, its Properties, the Note and the other Purchased Items or any
arrangement pursuant to which the Note and the other Purchased Items are issued
that might, in the reasonable judgment of the Purchaser, have a Material
Adverse Effect, and all such delinquent tax liabilities have been satisfied except
those that are being contested by the Seller in good faith and with respect to
which payment has been stayed by a court of competent jurisdiction.

 

(g)                                 No Proceedings.  There is no litigation, proceeding or
investigation pending or, to the best knowledge of the Seller, threatened
against the Seller, the Guarantor or the Pledgor, before any Governmental
Authority (i) asserting the invalidity of the Repurchase Documents, (ii) seeking
to prevent the consummation of any of the transactions contemplated by the
Repurchase Documents, or (iii) seeking any determination or ruling that
could reasonably be expected to have Material Adverse Effect.

 

(h)                                 No Violation or
Defaults.  The
execution and delivery and consummation of the transactions contemplated by the
Repurchase Documents and the fulfillment of the terms of the Repurchase
Documents will not (i) conflict with, result in any breach of any of the
terms and provisions 

 

9

 

of,
or constitute (with or without notice or lapse of time or both) a default
under, the Seller’s Governing Documents or any material Indebtedness or
Contractual Obligation of the Seller, (ii) result in the creation or
imposition of any Lien (other than Permitted Liens) upon any of the Seller’s Properties
pursuant to the terms of any such Indebtedness or Contractual Obligation, other
than this Agreement, or (iii) violate any Applicable Law.

 

(i)                                     All Consents
Required.  All
approvals, authorizations, consents, orders or other actions of any Person or
of any Governmental Authority (if any) required for the due execution, delivery
and performance by the Seller of the Repurchase Documents to which it is a
party (including the sale and transfer of, and the grant of a security interest
in, the Note and other Purchased Items) have been obtained, effected, waived or
given and are in full force and effect.

 

(j)                                     No Event of
Default.  No Event of Default has
occurred and is continuing hereunder.

 

(k)                                  Seller’s
Insurance.  The Seller
has and maintains, with respect to its Properties and business, insurance which
meets the requirements of Subsection 6(l) of this Agreement.

 

(l)                                     Solvency.  The Seller was Solvent at all relevant times
prior to, and the Seller will be Solvent after, the sale of the Note and other
Purchased Items to the Purchaser.  The
Seller is not selling the Note and other Purchased Items to the Purchaser with
any intent to hinder, delay or defraud any of the creditors of the Seller.

 

(m)                               Investment
Company Act Eligibility.  The
Seller is not, and is not controlled by, an “investment company” within the
meaning of the Investment Company Act of 1940, as amended, or is exempt from
the provisions of such act.

 

(n)                                 Patriot Act.  The Seller represents and warrants that it is
in compliance, in all material respects, with (i) the Trading with the
Enemy Act, as amended, and each of the foreign asset control regulations of the
United States Treasury Department (31 C.F.R., Subtitle B,
Chapter V, as amended) and any other applicable enabling legislation or
executive order relating thereto, (ii) the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism (USA Patriot Act of 2001), and (iii) any other anti-money
laundering laws and regulations.  The
Seller has established an adequate anti-money laundering compliance program as
required by the above-referenced laws and has conducted the requisite due
diligence in connection with the origination or acquisition of the Note and the
other Purchased Items for purposes of such laws and the acquisition of the Note
and the other Purchased Items by the Seller, its agents and/or Affiliates
complies with each of the above-references laws.  No part of the proceeds of the Transaction
will be 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 or retain any improper advantage, in violation of the United States
Foreign Corrupt Practices Act of 1977, as amended.

 

(o)                                 Office of
Foreign Assets Control.  The
Seller represents and warrants that it is not a Person (i) 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) who engages in any
dealings or transactions prohibited by Section 2 of such executive order,
or, to the best of the Seller’s knowledge, is otherwise associated with any
such Person in any manner violative of Section 2 of such executive order,
or (iii) on the current 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.

 

10

 

(p)                                 True and
Complete Disclosure.  The Seller
represents and warrants that the information, reports, financial statements,
exhibits and schedules furnished in writing by or on behalf of the Seller, the
Guarantor and the Pledgor to the Purchaser in connection with the negotiation,
preparation or delivery of this Agreement and the other Repurchase Documents or
included herein or therein or delivered pursuant hereto or thereto, when taken
as a whole, do not contain any untrue statement of material fact or omit to
state any material fact necessary to make the statements herein or therein, in
light of the circumstances under which they were made, not misleading.  All written information furnished after the
date hereof by or on behalf of the Seller, the Guarantor or the Pledgor to the
Purchaser in connection with this Agreement or the other Repurchase Documents
and the transactions contemplated hereby and thereby will be true, complete and
accurate in all material respects, or (in the case of projections) based on
reasonable estimates, on the date as of which such information is stated or
certified.  There is no fact known to the
Seller, the Guarantor or the Pledgor, after due inquiry, that would reasonably
be expected to have a Material Adverse Effect.

 

(q)                                 Exchange Act
Compliance; Regulations T, U and X.  The Transaction contemplated herein
(including, without limitation, the use of the proceeds from the sale of the
Note and the other Purchased Items) will not violate or result in a violation
of Section 7 of the Exchange Act, or any regulations issued pursuant
thereto, including, without limitation, Regulations T, U and X.  The Seller does not own or intend to carry or
purchase, and no proceeds from the Transaction will be used to carry or
purchase, any “margin stock” within the meaning of Regulation U or to
extend “purpose credit” within the meaning of Regulation U.

 

(r)                                    ERISA.  The Seller, the Guarantor, the Pledgor and
each ERISA Affiliate of the foregoing have made all required contributions to
each Benefit Plan subject to Section 412 of the Code, and no application
for a funding waiver or an extension of any amortization period pursuant to Section 412
of the Code has been made with respect to any Benefit Plan.  Neither the Seller, the Guarantor, the
Pledgor nor any ERISA Affiliate of the foregoing has incurred, or reasonably
expects to incur, any liability (and no event has occurred which, with the
giving of notice under Section 4219 of ERISA, would result in such
liability) under Section 4201 or 4243 of ERISA with respect to a
Multiemployer Plan, nor has there been a complete or partial withdrawal by the
Seller, the Guarantor, the Pledgor or any ERISA Affiliate of the foregoing from
a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization.  The present value of all benefits vested
under all “employee pension benefit plans,” as such term is defined in Section 3(2) of
ERISA, maintained by the Seller, the Guarantor or the Pledgor, or in which
employees of the Seller, the Guarantor or the Pledgor are entitled to
participate, as from time to time in effect (herein called the “Pension
Plans”), does not exceed the value of the assets of the Pension Plan
allocable to such vested benefits (based on the value of such assets as of the
last annual valuation date).  No
prohibited transactions, accumulated funding deficiencies, withdrawals or
reportable events have occurred with respect to any Pension Plans that, in the
aggregate, could subject the Seller, the Guarantor or the Pledgor to any
material tax, penalty or other liability. 
No Lien in favor of the PBGC or a Pension Plan has arisen or is likely
to arise on account of any Pension Plan. 
No notice of intent to terminate a Pension Plan under Section 4041(b) of
ERISA has been filed, nor has any Pension Plan been terminated under Section 4041(c) of
ERISA, nor has the PBGC instituted proceedings to terminate or appoint a
trustee to administer a Pension Plan, and no event has occurred or condition
exists that might constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Pension
Plan.

 

(s)                                  Tradenames.  The exact legal name of the Seller is set
forth on the signature pages to this Agreement.  The Seller does not have any trade names,
fictitious names, assumed names or “doing business as” names or other names
under which it has done or is doing business.

 

11

 

(t)                                    Compliance with
Law, Etc..  The Seller
has complied in all respects with all Applicable Laws to which it may be
subject, and neither the Note nor the other Purchased Items contravene any
Applicable Laws (including, without limitation, laws, rules and
regulations relating to licensing, truth in lending, fair credit billing, fair
credit reporting, equal credit opportunity, fair debt collection practices and
privacy).  The Seller is in compliance
with its Governing Documents, including without limitation, special purpose
entity provisions contained therein.

 

(u)                                 Income.  The Seller acknowledges that all Income
received by it or any Person on its behalf with respect to the Note and the
other Purchased Items sold hereunder is and shall be held in trust for the
benefit of the Purchaser until deposited into the Collection Account as
required herein.

 

(v)                                 No Broker.  Neither the Seller nor any of its Affiliates
have dealt with any broker, investment banker, agent or other Person, except
for the Purchaser (or an Affiliate of the Purchaser), who may be entitled to
any commission or compensation in connection with the sale of the Note and the
other Purchased Items pursuant to this Agreement.

 

(w)                              Representations
and Warranties Regarding the Note and the Purchased Items.  The Seller makes the following
representations and warranties regarding the Note and the Purchased Items.

 

(i)            True and complete copies of all of the Asset Documents
have been delivered by the Seller to the Purchaser and the Asset Documents
comprise all of the agreements relating to, and documents affecting, governing,
evidencing and securing, the Note and the other Purchased Items as of the date
hereof.  The terms of the Note, the
Purchased Items and the Asset Documents have not been waived, altered or
modified in any material respect, except as specifically set forth in the Asset
Documents.

 

(ii)           The information with respect to the Note, the other
Purchased Items and the Loan set forth in this Agreement and the Asset
Documents is true and correct in all material respects.

 

(iii)          The Note and the other Purchased Items are not cross—collateralized
with any other Indebtedness, except as provided in the Asset Documents.

 

(iv)          There are no defaults under the Note, the other Purchased
Items or the Loan and, to the Seller’s knowledge, the Obligors under the Note,
the other Purchased Items and the Loan have no counterclaims, defenses or
offset rights under the Asset Documents.

 

(v)           The Seller has no actual notice of (i) the
commencement of a proceeding for the condemnation of all or any material
portion of the Mortgage Properties directly or indirectly securing the Note,
the other Purchased Items or the Loan or (ii) any material casualty to the
Mortgage Properties directly or indirectly securing the Note, the other
Purchased Items or the Loan.

 

(vi)          The proceeds of the Note and the other Purchased Items have
been fully disbursed and there is no requirement for future advances
thereunder.

 

(vii)         Each of the Asset Documents has been duly and validly
authorized, executed and delivered and constitutes the legal, valid and binding
obligation of the parties thereto, enforceable in accordance with its terms,
except as such enforcement may be limited by Insolvency Laws and by general
principals of equity (whether considered in a proceeding in equity or at law).

 

12

 

(viii)        All escrow deposits relating to the Note, the other Purchased
Items or the Loan that are required to be deposited with the servicer, trustee
or other designated Person under the Asset Documents by the Obligors thereunder
prior to the date hereof have been so deposited.  The Seller is not holding any such escrow or
reserve accounts (or subaccounts).

 

(ix)           To the Seller’s knowledge, the Obligors under the Loan
presently have in effect all of the insurance policies required under the Asset
Documents.

 

(x)            To the Seller’s knowledge, there are no pending actions,
suits or proceedings by or before any court or governmental authority against
or affecting the Note, the Purchased Items, the Loan or any Mortgaged Property,
other than as disclosed in the Asset Documents. 
Neither the Note, the Purchased Items, the Loan nor, to the Seller’s
knowledge, any Obligors under the Note, the other Purchased Items or the Loan,
are currently the subject of or subject to any Insolvency Proceeding.

 

(xi)           (A) To the Seller’s knowledge, there are no
violations of any Applicable Law pertaining to the condition, use or operation
of the Mortgaged Properties that have been asserted by any Governmental
Authority that are likely to have a material adverse effect on the value of the
such properties, and (B) no Governmental Authority has asserted that any
of the Obligors under the Note, the other Purchased Items or the Loan has
failed to obtain any permit, license or other governmental approval necessary
for the use and operation of the Mortgaged Properties the failure of which
would be likely to have a material adverse effect on the value of such
properties.

 

(xii)          To the Seller’s knowledge, there are no circumstances or
conditions with respect to the Note, the other Purchased Items, the Mortgaged
Properties, the Loan, the Asset Documents or any Obligor that can reasonably be
expected to cause the Note, the other Purchased Items or the Loan to become
delinquent or adversely affect the value or marketability of the Note or the other
Purchased Items.

 

(xiii)         The Note and the other Purchased Items were underwritten by
the Seller strictly in accordance with Seller’s or the Affiliate’s underwriting
standards and guidelines.

 

(xiv)          To the Seller’s knowledge, the
representations and warranties set forth in the Asset Documents are true and
correct in all material respects.

 

(xv)           The Seller and NRFC Luxembourg are
each a Qualified Transferee and each has obtained any consents required under
the Asset Documents to acquire and transfer the Note and the other Purchased
Items to the Seller or the Purchaser, as applicable.

 

(xvi)          Immediately prior to the sale, transfer and assignment to
the Purchaser under the Repurchase
Documents, the Seller had good and marketable title to, and was the sole
legal and beneficial owner of, the Note and the other Purchased Items, and the
Seller is transferring the Note and the other Purchased Items free and clear of
any and all Liens (other than Permitted Liens) and the interests or claims of
third parties.  Upon consummation of the
transactions contemplated by this Agreement, the Seller will have validly and
effectively conveyed to the Purchaser
all of the Seller’s legal, equitable and beneficial interest and title in and
to the related Note and the other Purchased Items, free and clear of any Lien
(other than Permitted Liens), subject to the Seller’s rights under the
Agreement.  The Seller has not
effectuated any transfer, sale, assignment, pledge, hypothecation or other
conveyance of its rights, interests or obligations under any Asset Document,
the Note or the Purchased Items except in connection with the Agreement.

 

13

 

(xvii)         Other than consents and approvals obtained as of the related
Closing Date or those already granted in the Asset Documents governing the Note
and the other Purchased Items, no consent or approval by any Person is required
in connection with the Purchaser’s acquisition of the Note and the other
Purchased Items, for the Purchaser’s exercise of any rights or remedies in
respect of the Note and the other Purchased Items  or for the Purchaser’s sale or other
disposition of the Note and the other Purchased Items.  No other impediment exists to any such
transfer or exercise of rights or remedies. 
No third party holds any “right of first refusal”, “right of first
negotiation”, “right of first offer”, purchase option, or other similar rights
of any kind.

 

(xviii)        The Seller has delivered to the Purchaser all documents
necessary to transfer the Note and the related Purchased Items to the
Purchaser.

 

(xix)         As
of the date of its issuance, the Note complied in all material respects with,
or was exempt from, all requirements of all Applicable Law relating to the
issuance and transfer thereof including, without limitation, any registration
requirements of the Securities Act of 1933, as amended.

 

(xx)          Except
as included in the Asset Documents, there is no document that by its terms
modifies or affects the rights and obligations of the holder of the Note and
the other Purchased Items, the terms of the related pooling and servicing
agreement or any other agreement relating to the Note and the other Purchased
Items, and, since issuance, there has been no material change or waiver to any
term or provision of any such document, instrument or agreement.

 

(xxi)         Subject
to terms of the Asset Documents, no consent, approval, authorization or order
of, or registration or filing with, or notice to, any court or governmental
agency or body having jurisdiction or regulatory authority over Seller or NRFC
Luxembourg is required for any transfer or assignment of the Note and the other
Purchased Items.

 

(xxii)        Except
as included in the Asset Documents, (i) no interest shortfalls have
occurred and no realized losses have been applied to the Note or the other
Purchased Items or otherwise incurred with respect to any mortgage loan,
mezzanine loan or debt related to the Note or the other Purchased Items and (ii) Seller
is not aware of any circumstances that could have a material adverse effect on
the Note or the related Purchased Items.

 

(xxiii)       The
Seller has not received written notice of any outstanding liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind for which the holder of the Note or the
other Purchased Items is or may become obligated.

 

(xxiv)       The
Asset Documents contain usual and customary rights of a holder of the Note and
the other Purchased Items with regard to approval and consent rights and rights
to receive payments of principal, interest, principal and interest and periodic
information notices and reports.

 

(xxv)        No
holder of the Note and other Purchased Items is obligated to make any advances
or pay any fees, costs or expenses under the terms of the Asset Documents or as
a result of being a holder of the Note and other Purchased Items.

 

14

 

(xxvi)       There
was and is no valid offset, defense, counterclaim, abatement or right to
rescission with respect to the Note, the other Purchased Items or any of the
related Asset Documents or other agreements executed in connection therewith.

 

(xxvii)      (a) Other
than payments due but not yet thirty (30) days or more delinquent, there
is no material default, breach, violation or event of acceleration existing
under the Asset Documents, the Note, the related Purchased Items or the Loan,
and no event (other than payments due but not yet delinquent) which, with the
passage of time or with notice and the expiration of any grace or cure period,
would constitute a material default, breach, violation or event of acceleration
thereunder; provided, however, that this representation does not
address or otherwise cover any default, breach, violation or event of
acceleration that specifically pertains to any matter otherwise covered by any
other representation in any other paragraph of this Section 5, and (b) neither
the Seller, NRFC Luxembourg, any servicer or any holder of the Note, the other
Purchased items or the Loan has waived any material default, breach, violation
or event of acceleration under the Asset Documents, the Note, the related
Purchased Items or the Loan, except for a written waiver provided to the
Purchaser in advance of the Closing Date and contained in the related Asset
File.

 

(xxviii)     The
Note, the Participation and the Loan are not, and in the prior twelve (12)
months, have not been, thirty (30) days or more past due.

 

(xxix)       The
Seller has no information or reason to believe that the Note, the Participation
or the Loan will not be paid in full.

 

(x)                                 Chief Executive
Office.  The Seller’s chief executive
office is located in the Cayman Islands and NRFC Luxembourg’s chief executive
office is located in Luxembourg.

 

(y)                                 Foreign Seller
Representations.

 

(i)            The Seller is subject to civil and commercial Applicable Laws
with respect to its obligations under this Agreement and the other Repurchase
Documents to which it is a party, and the execution, delivery and performance
by the Seller of this Agreement and the other Repurchase Documents constitute
and will constitute private and commercial acts and not public or governmental
acts.  Neither the Seller nor any of its
Property has any immunity from jurisdiction of any court or from any legal
process (whether through service or notice, attachment prior to judgment,
attachment in aid of execution, execution or otherwise) under the laws of the
jurisdiction in which the Seller is organized and existing in respect of its
obligations under this Agreement and the other Repurchase Documents.

 

(ii)           This
Agreement and the other Repurchase Documents are in proper legal form under the
Applicable Laws of the jurisdiction in which the Seller is organized and
existing for the enforcement thereof against the Seller under the Applicable
Laws of such jurisdiction, and to ensure the legality, validity,
enforceability, priority or admissibility in evidence of this Agreement and the
other Repurchase Documents.  It is not
necessary to ensure the legality, validity, enforceability, priority or admissibility
in evidence of this Agreement and/or the other Repurchase Documents that this
Agreement and/or the other Repurchase Documents be filed, registered or
recorded with, or executed or notarized before, any court or other authority in
the jurisdiction in which the Seller is organized and existing or that any
registration charge or stamp or similar tax be paid on or in respect of this
Agreement and/or the other Repurchase Documents or any other document, except
for (A) any such filing, registration, recording, execution or
notarization as has been made or is not required to be made until this
Agreement, any other 

 

15

 

Repurchase Document or
any other document is sought to be enforced and (B) any charge or tax as
has been timely paid.

 

(iii)          There
is no tax, levy, impost, duty, fee, assessment or other governmental charge, or
any deduction or withholding, imposed by any Governmental Authority in or of
the jurisdiction in which the Seller is organized and existing either (A) on
or by virtue of the execution or delivery of this Agreement and the other
Repurchase Documents or (B) on any payment to be made by the Seller
pursuant to this Agreement and the other Repurchase Documents, except as has
been disclosed to the Purchaser.

 

(iv)          The
execution, delivery and performance of this Agreement and the other Repurchase
Documents executed by the Seller are, under applicable foreign exchange control
regulations of the jurisdiction in which the Seller is organized and existing,
not subject to any notification or authorization except (A) such as have
been made or obtained or (B) such as cannot be made or obtained until a
later date (provided that any notification or authorization described in
clause (C) shall be made or obtained as soon as is reasonably
practicable).

 

(z)                                  Separateness.

 

The
Seller is in compliance with Subsection 6(r) of this
Agreement.

 

Section 6.              Covenants of the Seller.

 

The Seller hereby covenants with the Purchaser as
follows:

 

(a)                                  Compliance with
Laws and Contractual Obligations.  The Seller shall comply in all material
respects with all Applicable Laws (including Environmental Laws), including
those that apply to the Note and the other Purchased Items or any part thereof,
and shall comply, and perform all duties and obligations under, all Contractual
Obligations and all Indebtedness, including under the Note and the other
Purchased Items.

 

(b)                                 Payment of
Taxes.  The Seller shall pay and
discharge all taxes, assessments and governmental charges or levies imposed on
it or on its income or profits or on any of its Property prior to the date on
which penalties attach thereto, except for any such tax, assessment, charge or
levy the payment of which is being contested in good faith and by proper
proceedings and against which adequate reserves are being maintained in
accordance with GAAP.

 

(c)                                  Corporate
Existence.  The Seller
shall continue to engage in business of the same general type as now conducted
by it and shall preserve and maintain its company existence, rights, franchises
and privileges in the jurisdiction of its formation and will qualify and remain
qualified in good standing as a corporation or other entity in each
jurisdiction where the failure to preserve and maintain such existence, rights,
franchises, privileges and qualification has had, or could reasonably be
expected to have, a Material Adverse Effect. 
The Seller shall comply with its Governing Documents and shall not
materially amend its Governing Documents without the Purchaser’s prior written consent
in its discretion.

 

(d)                                 ERISA Matters.  Neither the Seller, the Guarantor nor the
Pledgor will (i) engage or permit any ERISA Affiliate  to engage in any prohibited transaction
for which an exemption is not available or has not previously been obtained
from the United States Department of Labor, (ii) permit to exist any
accumulated funding deficiency, as defined in Section 302(a) of ERISA
and Section 412(a) of the Code, or funding deficiency with respect to
any Benefit Plan other than a Multiemployer Plan, (iii) fail to make any
payments to a Multiemployer Plan that the Seller or any ERISA Affiliate may be 

 

16

 

required
to make under the agreement relating to such Multiemployer Plan or any law
pertaining thereto, (iv) terminate any Benefit Plan so as to result in any
liability,  (v) permit to
exist any occurrence of any Reportable Event or (vi) otherwise violate the
provisions of ERISA or the Code with respect to any Benefit Plan.

 

(e)                                  Payment of
Obligations.  The Seller
shall pay, discharge or otherwise satisfy at or before maturity or before they
become delinquent, as the case may be, all its obligations and Indebtedness of
whatever nature, except where the amount or validity thereof is currently being
contested in good faith by appropriate proceedings and reserves in conformity
with GAAP with respect thereto have been provided on the books of the Seller.

 

(f)                                    Keeping of
Records and Books of Account.  The Seller will maintain and implement
administrative and operating procedures (including, without limitation, an
ability to recreate records evidencing the Note and the other Purchased Items
in the event of the destruction of the originals thereof) and will keep and
maintain all documents, books, records and other information reasonably
necessary or advisable in which complete entries are made in accordance with
GAAP and Applicable Laws.

 

(g)                                 Notices.  The Seller will furnish written notice to the
Purchaser with respect to the following:

 

(i)            Representations. 
Promptly upon notice or knowledge thereof, notice that any
representation or warranty set forth in the Repurchase Documents by either the
Seller, the Guarantor or the Pledgor or by NRFC Luxembourg under the Note or
other Purchased Items was or is incorrect and the Seller shall at the same time
deliver to the Purchaser a written notice setting forth in reasonable detail
the nature of such facts and circumstances;

 

(ii)           Covenants.  Promptly upon notice or knowledge thereof,
notice of any material default with respect to any covenant, duty, obligation
or agreement of the Seller, the Guarantor or the Pledgor under any Repurchase
Document or by NRFC Luxembourg under the Note or other Purchased Items;

 

(iii)          Material
Events.  Promptly upon notice or
knowledge thereof, notice of any other event or circumstances that, in the
reasonable judgment of the Seller, the Guarantor or the Pledgor, is likely to
have a Material Adverse Effect;

 

(iv)          Event
of Default.  The Seller shall notify
the Purchaser promptly upon the Seller, the Guarantor or the Pledgor becoming
aware of any event which would constitute an Event of Default.

 

(v)           Casualty.  With respect to the Note, the other Purchased
Items and the Loan, promptly upon notice or knowledge thereof, notice that any
portion of any Mortgaged Property has been damaged by waste, fire, earthquake
or earth movement, flood, tornado or other casualty, or otherwise damaged so as
to affect adversely the Mortgaged Property or the Market Value of the Note;

 

(vi)          Liens.  Promptly upon notice or knowledge thereof,
notice of any Lien or security interest on, or claim asserted against, any
Mortgaged Property, the Loan, the Note or any other Purchased Item;

 

(vii)         Defaults.  Promptly upon notice or knowledge thereof,
notice of (A) any material default (beyond any applicable notice and cure
period) related to any Asset Documents, the Note 

 

17

 

or any other Purchased Item
or the Loan, or (B) any default (beyond any applicable notice and cure
period) under any Contractual Obligation or Indebtedness of the Seller, the
Guarantor, the Pledgor or any of their Subsidiaries, which, if not cured, could
reasonably be expected to have a Material Adverse Effect;

 

(viii)         Losses. 
Promptly upon notice or knowledge thereof, notice of any loss or
expected loss in respect of the Loan, the Note, any other Purchased Item or any
portion of any Mortgaged Property, or any other event or change in
circumstances or expected event or change in circumstances that could be reasonably
be expected to result in a material decline in the Market Value of the Note or
the other Purchased Items, or the value or cash flow of the Note, any other
Purchased Item, the Loan or any portion of any Mortgaged Property;

 

(ix)           Change
of Chief Executive Office.  Promptly
notice of any change in the Seller’s or NRFC Luxembourg’s chief executive
office.

 

(x)            Sales.  Promptly upon notice or knowledge thereof,
notice of the conveyance, sale, lease, assignment, transfer or other
disposition of any Property, business or assets of the Seller, the Guarantor or
the Pledgor, whether now owned or hereafter acquired (with the exception of
this Agreement), which could reasonably be expected to have a Material Adverse
Effect; and

 

(xi)           Proceedings.  Promptly upon notice or knowledge thereof,
notice of any settlement of, material judgment (including a material judgment
with respect to the liability phase of a bifurcated trial) in or commencement
of any labor controversy (of a material nature), litigation, action, suit,
arbitration or proceeding before any court or governmental department,
commission, board, bureau, agency, arbitrator, investigation or
instrumentality, domestic or foreign, affecting (A) the Note, any of the
other Purchased Items, the Loan or any Mortgaged Property, (B) the
Repurchase Documents or the Asset Documents, (C) the Purchaser’s interest
in the Note or any of the other Purchased Items, or (D) the Seller, the
Guarantor, the Pledgor or NRFC Luxembourg and, with respect to this clause (D) only,
the amount in controversy exceeds $500,000.

 

Each notice pursuant to this
Subsection 6(g) shall be accompanied by a statement of the
Seller, the Guarantor and/or the Pledgor, setting forth details of the
occurrence referred to therein and stating what action the Seller, the
Guarantor, the Pledgor or NRFC Luxembourg has taken or proposes to take with
respect thereto.  In addition, the Seller
shall provide the Purchaser with a copy of any notice received by the Seller from
NRFC Luxembourg under the Note, the other Purchased Items or any other
agreement with NRFC Luxembourg.

 

(h)                                 Perfection.  With respect to the Note and the other
Purchased Items acquired by the Purchaser, the Seller will (i) take all
action required by the Purchaser to grant, perfect, protect and more fully
evidence the Purchaser’s ownership of and first priority perfected Lien on such
Note and the other Purchased Items, including, without limitation, (A) delivering
all original documents to Purchaser’s or its designee’s possession where perfection
thereof is required or permitted by possession, (B) executing or causing
to be executed such other instruments or notices as may be necessary or
appropriate and (ii) taking all additional action that the Purchaser may
reasonably request to perfect, maintain, protect and more fully evidence the
respective interests of the parties to this Agreement and the Repurchase
Documents in such Note and the other Purchased Items.

 

(i)                                     Further
Covenants.  Without
prior written consent of the Purchaser, the Seller shall not:  (i) assign, sell, transfer, pledge or
grant any security interest in or Lien on the Note or any of the other 

 

18

 

Purchased Items (whether now
existing or hereafter arising) to anyone except the Purchaser, permit any
financing statement (except any financing statements in favor of Purchaser) or
assignment (except for any assignments in favor of the Purchaser) to be on file
in any public office with respect thereto, (ii) permit or suffer to exist
any Lien or right of others to attach to the Note or any of the other Purchased
Items, except as contemplated by this Agreement, (iii) sell, pledge,
assign or suffer to exist any Lien on its interest, if any, hereunder, or (iv) consent
to any amendment, modification or supplement to the Note, the other Purchased
Items or Asset Documents pursuant to which the Note or any of the other
Purchased Items were issued or created or governed that would materially and
adversely affect the Purchaser’s interests hereunder or with respect to the
Note or any of the other Purchased Items without the prior written consent of
the Purchaser.  Immediately upon notice
to the Seller of a Lien or any circumstance which, if adversely determined
would be reasonably likely to give rise to a Lien (other than in favor of the
Purchaser or created by or through Purchaser) on the Note or on any of the
other Purchased Items, the Seller will defend the Note and any of the other
Purchased Items against, and will take such other action as is necessary to
remove, any Lien or claim on or to the Note or any of the other Purchased Items
(other than any Lien created under this Agreement), and the Seller will defend
the right, title and interest of the Purchaser in and to any of the Note and
Purchased Items against the claims and demands of all Persons whomsoever.

 

(j)                                     Investments.  The Seller shall not, and it shall not permit
the Guarantor or the Pledgor or any of their Affiliates to, acquire or maintain
any right or interest in any asset that is senior to or pari passu
with the rights and interests of the Purchaser under this Agreement.

 

(k)                                  Prohibition of
Fundamental Changes.  The Seller
shall not enter into any transaction of merger or consolidation or
amalgamation, or liquidate, wind up or dissolve itself (or suffer any
liquidation, winding up or dissolution) or sell all or substantially all of its
assets.

 

(l)                                     Maintenance of
Property; Insurance.  The Seller
shall keep all Property useful and necessary in its business in good working
order and condition, shall maintain with financially sound and reputable
insurance companies insurance on all its Property in at least such amounts and
against at least such risks as are usually and customarily insured against in
the same general area by companies acting prudently and engaged in the same or
a similar business, and furnish to the Purchaser, upon written request, full
information as to the insurance carried.

 

(m)                               Delivery of
Income.  The Seller will deposit and
cause all Persons acting on its behalf and all servicers, trustees or other
Persons with an obligation to make payments with respect to the Note and other
Purchased Items to deposit all Income received in respect of the Note and the
other Purchased Items into the Collection Account within one (1) Business
Day of receipt thereof.

 

(n)                                 Performance and
Compliance with Purchased Items.  The Seller will (and shall cause NRFC
Luxembourg), at its expense, timely and fully perform and comply with all
provisions, covenants, duties, obligations and other promises required to be
observed by it or NRFC Luxembourg under the Note and the other Purchased Items,
the Repurchase Documents and all other agreements executed in connection with
or related to the foregoing.

 

(o)                                 Purchased Items
Not to be Evidenced by Instruments.  The Seller shall not take any action or
permit any action to be taken to cause the Note or other Purchased Item that is
not, as of the applicable Closing Date, evidenced by an Instrument (as defined
in the UCC) to be so evidenced except in connection with the enforcement or
collection of the Note or other Purchased Items.

 

(p)                                 Change of Name
or Location of Asset Files.  The Seller shall not (and shall not permit
NRFC Luxembourg to) change its name, organizational number, identity, structure
or jurisdiction of 

 

19

 

formation, move the location
of its principal place of business and chief executive office, or change the
offices where it keeps its records (as defined in the UCC) from the location
referred to on the signature page to this Agreement, unless the Seller has
given at least thirty (30) days’ prior written notice to the Purchaser.

 

(q)                                 Information and
Reports.  The Seller shall promptly
deliver to the Purchaser all information, documents or reports received or
generated by the Seller, the Guarantor, the Pledgor, NRFC Luxembourg or any
Affiliate of the foregoing with respect to the Note and the other Purchased
Items, including, without limitation, information, documents and reports under
or in connection with the Asset Documents and any documents, agreements or
notices delivered or available to the Seller or NRFC Luxembourg with respect to
the Note or the other Asset Documents.

 

(r)                                    Separateness.  The Seller shall (i) own no assets, and
shall not engage in any business, other than the assets and transactions
specifically contemplated by this Agreement; (ii) not incur any
Indebtedness or obligation, secured or unsecured, direct or indirect, absolute
or contingent (including guaranteeing any obligation), other than (A) with
respect to the Asset Documents and (B) as otherwise permitted under this
Agreement; (iii) not make any loans or advances to any Affiliate or third
party and shall not acquire obligations or securities of its Affiliates; (iv) pay
its debts and liabilities (including, as applicable, shared personnel and
overhead expenses) only from its own assets; (v) comply with the
provisions of its Governing Documents; (vi) do all things necessary to
observe organizational formalities and to preserve its existence, and shall not
amend, modify or otherwise change its Governing Documents; (vii) maintain
all of its books, records, financial statements and bank accounts separate from
those of its Affiliates (except that such financial statements may be consolidated
to the extent consolidation is required under the GAAP consistently applied or
as a matter of Applicable Law) and file its own tax returns (except to the
extent consolidation is required or permitted under Applicable Law); (viii) be,
and at all times shall hold itself out to the public as, a legal entity
separate and distinct from any other entity (including any Affiliate), shall
correct any known misunderstanding regarding its status as a separate entity,
shall conduct business in its own name, and shall not identify itself or any of
its Affiliates as a division of the other; (ix) maintain adequate capital
for the normal obligations reasonably foreseeable in a business of its size and
character and in light of its contemplated business operations; (x) not
engage in or suffer any change of ownership, dissolution, winding up,
liquidation, consolidation or merger in whole or in part; (xi) not
commingle its funds or other assets with those of any Affiliate or any other
Person; (xii) maintain its accounts separate from those of any Affiliate
or any other Person; (xiii) shall not hold itself out to be responsible
for the debts or obligations of any other Person; (xiv) shall not, without
the vote of its Independent Director, (A) file or consent to the filing of
any Insolvency Proceeding with respect to the Seller, institute any proceedings
under any applicable Insolvency Law or otherwise seek any relief under any laws
relating to the relief from debts or the protection of debtors generally with
respect to the Seller, (B) seek or consent to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator, custodian or any similar
official for the Seller or a substantial portion of its Properties, or (C) make
any assignment for the benefit of the Seller’s creditors; (xv) shall have
at all times at least one (1) Independent Director (or such greater
number as required by the Purchaser); (xvi) shall maintain an arm’s length
relationship with its Affiliates; (xvii) maintain a sufficient number of
employees in light of contemplated business operations; (xviii) use
separate stationary, invoices and checks; and (xvix) allocate fairly and
reasonably any overhead for shared office space.

 

(s)                                  Negative
Pledge; No Additional Indebtedness.  Until the Debt is indefeasibly paid in full
and except as contemplated under the Repurchase Documents, no portion of the
Capital Stock (or any dividends, distributions or payments with respect
thereto) in the Seller or NRFC Luxembourg or any assets or property of the
Seller or NRFC Luxembourg may (directly or indirectly) be assigned,
transferred, pledged, participated, hypothecated or rehypothecated, nor may any
Liens be granted or exist on any portion of the Capital Stock (or any
dividends, distributions or payments with respect thereto) in

 

20

 

the Seller or NRFC
Luxembourg or any assets or Property of the Seller or NRFC Luxembourg.  After the Closing Date, neither Seller nor
NRFC Luxembourg shall acquire any asset or Property or incur any Indebtedness
or guarantee obligations without the Purchaser’s prior written consent in its
discretion.

 

(t)            Register of
Members.  The Seller shall procure
that the register of members of the Seller shall at all times be maintained in
the Cayman Islands.

 

(u)           The Seller shall
provide evidence to the Purchaser within thirty (30) days of the Closing Date
that the Notices have been acknowledged by the addressees thereof.

 

Section 7.              Grant of a Security Interest.

 

(a)           It
is the express intent of the parties hereto that the conveyance of the Note and
the other Purchased Items by the Seller to the Purchaser as provided in Section 2
hereof be, and be construed as, a sale of the Note and the other Purchased
Items by the Seller to the Purchaser and not as a pledge of the Note and the
other Purchased Items by the Seller to the Purchaser to secure a debt or other
obligation of the Seller.  However, if,
notwithstanding the aforementioned intent of the parties, the Note and the
other Purchased Items are held to be Property of the Seller, then, (a) it
is the express intent of the parties that such conveyance be deemed a pledge of
the Note and the other Purchased Items by the Seller to the Purchaser to secure
a debt or other obligations, more specifically, the Aggregate Unpaids hereunder
and the Repurchase Obligations (collectively, the “Debt”), and (b) (i) this
Agreement shall also be deemed to be a security agreement within the meaning of
Article 9 of the UCC of the applicable jurisdiction; (ii) the
conveyance provided for in Section 2 hereof shall be deemed to be
and the Seller does hereby grant, pledge and assign to the Purchaser a security
interest in all of the Seller’s right, title and interest in and to the Note
and all other Purchased Items as security for the repayment of the Debt; (iii) the
assignment by the Purchaser of the interest of the Purchaser as contemplated by
Section 4 hereof shall be deemed to be an assignment of any
security interest created hereunder; (iv) the possession by the Purchaser
or any of its agents, including, without limitation, any custodian therefor, of
the Note, the Purchased Items (if any), the Asset Documents and such other
items of property as constitute instruments, money, negotiable documents or
chattel paper shall be deemed to be possession by the secured party for
purposes of perfecting the security interest pursuant to Section 9—313 of
the UCC; and (v) notifications to Persons (other than the Purchaser)
holding such property, and acknowledgments, receipts or confirmations from
Persons (other than the Purchaser) holding such property, shall be deemed
notifications to, or acknowledgments, receipts or confirmations from, financial
intermediaries, bailees or agents (as applicable) of the secured party for the
purpose of perfecting such security interest under the UCC and Applicable Law.  The Seller hereby authorizes the filing of
any financing statements, and amendments to financing statements, in any
jurisdictions and with any filing offices as the Purchaser may determine, in
its reasonable discretion, are necessary or advisable to perfect the security
interest to the Purchaser in connection hereunder.  Such financing statements may describe the
collateral in the same manner as described in this Agreement or may contain an
indication or description of collateral that describes such property in any
other manner, including, without limitation, describing such collateral as “all
assets, whether now owned or hereafter acquired, now existing or hereafter
created and wherever located” or “all personal property, whether now owned or
hereafter acquired, now existing or hereafter created and wherever located.”

 

Notwithstanding
anything contained herein to the contrary, no Income, Price Differential,
principal, fees, payments or other amounts received from or in respect of the
Purchased Items or the Repurchase Documents (whether pursuant to the exercise
of rights or remedies hereunder or thereunder or otherwise) shall be applied to
the Indebtedness owed to VFCC under the VFCC Repurchase Facility (whether
pursuant to the exercise of rights or remedies thereunder or otherwise), and no
payments or other amounts received from or in respect of the VFCC Repurchase
Facility shall be applied to any 

 

21

 

Indebtedness
under the Repurchase Documents, during the time that VFCC is a purchaser under
the VFCC Repurchase Facility.

 

(b)           If an Event of
Default shall have occurred and be continuing, to the extent not already
accelerated, all amounts due to the Purchaser shall automatically be
accelerated, and the Purchaser, without any other notice to or demand upon the
Seller, shall have in any jurisdiction in which enforcement hereof is sought,
in addition to all other rights and remedies under Applicable Law, the same
rights and remedies as the “purchaser” has under the Wachovia Repurchase
Facility upon an “Event of Default” thereunder, mutatis mutandis,
all of the rights and remedies of a secured party under the UCC and any
additional rights and remedies as may be provided to a secured party in any
jurisdiction in which the Seller, NRFC Luxembourg, the Note, the Purchased
Items or any Mortgaged Properties are located, including, without limitation,
the right to take possession of the Purchased Items, and for that purpose the
Purchaser may, so far as the Seller can give authority therefor, enter upon any
premises on which the Purchased Items may be situated and remove the same
therefrom.  The Purchaser may, in its
discretion, require the Seller to assemble all or any part of the Purchased Items
at such location or locations as the Purchaser may reasonably designate.  Unless the Purchased Items are perishable or
threatens to decline speedily in value or are of a type customarily sold on a
recognized market, the Purchaser shall give to the Seller at least ten (10) days
prior written notice of the time and place of any public sale of the Purchased
Items or of the time after which any private sale or any other intended
disposition is to be made.  The Seller
hereby acknowledges that ten (10) days prior written notice of such
sale or sales shall be reasonable notice. 
In addition, the Seller waives any and all rights that it may have to a
judicial hearing in advance of the enforcement of any of the Purchaser’s rights
and remedies hereunder, including, without limitation, the Purchaser’s right
following an Event of Default to take immediate possession of the Purchased
Items and to exercise its rights and remedies with respect thereto.

 

Section 8.              Indemnification; Expenses.

 

(a)           The
Seller agrees to indemnify and hold harmless the Purchaser and each of its
Affiliates and Subsidiaries and their present and former respective officers,
directors, employees, agents, advisors and other representatives (each, an “Indemnified
Party”) from and against any and all direct, as opposed to consequential,
claims, damages, losses, liabilities, costs, civil penalties and expenses
(including, without limitation, expenses under Subsection 8(b) and Section 27
and reasonable attorneys fees, costs, expenses and disbursements) (each a “Cost”
and collectively, “Costs”) that may be incurred by or asserted or
awarded against any Indemnified Party, in each case relating to or arising out
of any of the Note, the Purchased Items, the Repurchase Documents, the Asset
Documents or any transaction contemplated hereby or thereby, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of
any of the Note, the Purchased Items, the Repurchase Documents, the Asset
Documents or any transaction contemplated hereby or thereby, except to the extent
such Cost is found in a final, non appealable judgment by a court of competent
jurisdiction to have resulted from such Indemnified Party’s gross negligence,
bad faith or willful misconduct.  Costs
subject to this Section 8 shall include, but not be limited to, (i) Costs
incurred in connection with the violation of any Environmental Laws and the
existence, correction or removal of any Materials of Environmental Concern in
any way affecting any Mortgaged Property or any real property and (ii) all
Costs with respect to the Note, any Purchased Items or any Mortgaged Property
relating to or arising out of any violation or alleged violation of any
Applicable Law, except to the extent any such Costs are found in a final, non
appealable judgment by a court of competent jurisdiction to have resulted from
such Indemnified Party’s gross negligence, bad faith or willful
misconduct.  In the case of an
investigation, litigation or other proceeding to which the indemnity in this Section 8
applies, such indemnity shall be effective whether or not such investigation,
litigation or proceeding is brought by the Seller, its officers, directors,
shareholders, employees or creditors, an Indemnified Party or any other Person
or any Indemnified Party is otherwise a party thereto and whether or not any
transaction contemplated hereby is consummated. 
The Seller agrees not to assert 

 

22

 

any
claim against any Indemnified Party, or any of their respective directors,
officers, employees, attorneys, agents, and advisers, on any theory of
liability for special, indirect, consequential or punitive damages arising out
of or otherwise relating to the Repurchase Documents, the Asset Documents or
any of the transactions contemplated herein or therein or the actual or
proposed use of the proceeds of this Agreement. 
In any suit, proceeding or action brought by an Indemnified Party in
connection with the Note, the other Purchased Items, any Mortgaged Property,
the Loan or the Asset Documents for any sum owing hereunder, or to enforce any
provisions of the Note, the other Purchased Items, any Mortgaged Property, the
Loan, the Asset Documents or any documents related to the foregoing the Seller
will save, indemnify and hold such Indemnified Party harmless from and against
all expense, loss or damage suffered by reason of any defense, set—off,
counterclaim, recoupment or reduction or liability whatsoever of any Obligor,
account debtor or obligor thereunder, arising out of a breach by the Seller of
any obligation thereunder or arising out of any other agreement, indebtedness
or liability at any time owing to or in favor of such Obligor, account debtor
or obligor or its successors from the Seller. 
The Seller also agrees to reimburse an Indemnified Party as and when
billed by such Indemnified Party for all the Indemnified Party’s costs and
expenses incurred in connection with the enforcement or the preservation of the
Purchaser’s rights under the Repurchase Documents, the Asset Documents or any
transaction contemplated hereby and thereby, including, without limitation, the
reasonable fees, costs, expenses and disbursements of its counsel.

 

(b)           The
Seller shall, whether or not the Transaction contemplated hereby is
consummated:  (i) pay as and when
billed by Purchaser all reasonable out—of—pocket costs and expenses (including,
without limitation, all reasonable fees, costs, expenses and disbursements of
outside legal counsel, accounting, consulting, brokerage or other similar
professional fees or expenses), and any reasonable fees and expenses of the
Purchaser associated with travel or other costs relating to any testing, due
diligence, appraisals or examinations conducted in connection with the
Transaction, and the amount of such costs and expenses shall, until paid, bear
interest at the Pricing Rate (A) in connection with the development,
preparation, consummation, administration, filing, recording, execution and
delivery of, and any amendment, supplement, modification waiver or consent to,
this Agreement, the Repurchase Documents, the Asset Documents or any other
documents, agreements or instruments prepared in connection herewith or
therewith and the documents, agreements and instruments referred to therein and
(B) in connection with the enforcement of or the exercise or preservation
of rights under this Agreement, the Repurchase Documents, the Asset Documents,
other documents, instruments or agreements prepared in connection herewith or
therewith, the documents, agreements and instruments referred to therein and
all amendments, supplements, modifications, waivers and consents relating to
any of the foregoing; and (ii) pay and hold the Purchaser harmless from
and against any and all present and future stamp, documentary, excise, issue,
sales and use, value added, property and other similar taxes and fees (other
than taxes imposed on net income) with respect to the matters described in
foregoing clause (i) or the funding or maintenance of the
Transaction hereunder and hold the Purchaser harmless from and against any and
all liabilities with respect to or resulting from any delay or omission to pay
such taxes and fees.

 

(c)           The
agreements and obligations of the Seller contained in this Section 8
shall survive the repayment of all amounts owing to the Purchaser by the Seller
under the Agreement and the termination of this Agreement.

 

Section 9.              Successors and Assigns.

 

The
rights, obligations and duties of the Seller under this Agreement shall not be
assigned by the Seller without the prior written consent of the Purchaser.  The Purchaser shall be entitled to assign its
rights under this Agreement, the other Repurchase Documents, the Note and the
Purchased Items without the consent of the Seller.  Subject to the foregoing, this Agreement
shall bind and inure to the benefit of and be enforceable by the Seller and the
Purchaser and their permitted successors and assigns.

 

23

 

Section 10.            Amendments and Waivers.

 

No
amendment, waiver or other modification of any provision of this Agreement
shall be effective without the written agreement of the Seller and the
Purchaser.  Any waiver or consent shall
be effective only if it is in writing and only in the specific instance and for
the specific purpose for which given.

 

Section 11.            Notices, Etc.

 

All
notices and other communications provided for hereunder shall, unless otherwise
stated herein, be in writing (including telex communication and communication
by facsimile copy) and mailed, telexed, transmitted or delivered, as to each party
hereto, at its address set forth under its name on the signature pages hereof
or at such other address as shall be designated by such party in a written
notice to the other parties hereto.  All
such notices and communications shall be effective, upon receipt, or in the
case of (a) notice by telex, when telexed against receipt of answer back,
or (b) notice by facsimile copy, when verbal communication of receipt is
obtained.  The Seller shall not be
entitled to any notices of any nature whatsoever from the Purchaser except with
respect to matters for which this Agreement or the Repurchase Documents
specifically and expressly provide for the giving of notice by the Purchaser to
the Seller and except with respect to matters for which the Seller is not, pursuant
to Applicable Law, permitted to waive the giving of notice.

 

Section 12.            Set—offs.

 

(a)           In
addition to any rights and remedies of the Purchaser provided under this
Agreement, the Repurchase Documents and by Applicable Law, the Purchaser shall
have the right, without prior notice to the Seller, any such notice being
expressly waived by the Seller to the extent permitted by Applicable Law, upon
any amount becoming due and payable by the Seller to the Purchaser hereunder,
under the Repurchase Documents or otherwise (whether at the stated maturity, by
acceleration or otherwise) to set—off and appropriate and apply against such
amount any and all monies and other Property of the Seller, any and all
deposits (general or special, time or demand, provisional or final), in any
currency, and any and all other credits, indebtedness or claims, in any
currency, in each case whether direct or indirect, absolute or contingent,
matured or unmatured, and in each case at any time held or owing by the
Purchaser or any Affiliate thereof to or for the credit or the account of the
Seller.  The Purchaser agrees promptly to
notify the Seller after any such set—off and application made by the Purchaser,
provided that the failure to give such notice shall not affect the validity of
such set—off and application.

 

(b)           The
Seller hereby waives any right of setoff it may have or to which it may be
entitled under this Agreement, the other Repurchase Documents or Applicable Law
from time to time against the Purchaser or its assets.

 

Section 13.            No Waiver; Remedies.

 

(a)           No
failure on the part of the Purchaser to exercise, and no delay in exercising,
any right or remedy hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any right or remedy hereunder preclude any
further exercise thereof or the exercise of any other right.  The rights and remedies herein provided are
cumulative and not exclusive of any rights and remedies provided by Applicable
Law.  Application of the Default Rate
after an Event of Default or otherwise shall not be deemed to constitute a
waiver of any Event of Default or any rights or remedies of the Purchaser under
this Agreement, the other Repurchase Documents or Applicable Law, or a consent
to any extension of 

 

24

 

time
for the payment or performance of any obligation with respect to which the
Default Rate after an Event of Default or otherwise may be invoked.

 

(b)           In
the event that a claim or adjudication is made that the Purchaser has acted
unreasonably or unreasonably delayed acting in any case where by Applicable Law
or under this Agreement or the other Repurchase Documents it has an obligation
to act reasonably or promptly, the Purchaser shall not be liable for any
punitive, consequential or incidental damages, and the Seller’s sole remedies
with respect thereto shall be limited to commencing an action seeking
injunctive relief, actual damages or declaratory judgment.

 

Section 14.            Term of this Agreement.

 

This
Agreement, including, without limitation, the Seller’s representations,
warranties, covenants and duties set herein, create and constitute the
continuing obligation of the parties hereto in accordance with its terms and
shall remain in full force and effect until the Aggregate Unpaids are
indefeasibly paid in full; provided, however, notwithstanding the
indefeasible repayment in full of the Aggregate Unpaids and/or the termination
of this Agreement, the indemnification and expense provisions contained in the
Repurchase Documents, and any other provision that by its terms expressly
survives termination shall each be continuing and shall survive any termination
of this Agreement.

 

Section 15.            Governing Law; Consent to
Jurisdiction and Venue.

 

THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK (WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS
THEREOF).  EACH OF THE PARTIES HERETO
HEREBY AGREES TO THE NON—EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT
LOCATED WITHIN THE STATE OF NEW YORK. 
EACH OF THE PARTIES HERETO HEREBY WAIVES ANY OBJECTION BASED ON FORUM
NON CONVENIENS AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN
ANY OF THE AFOREMENTIONED COURTS AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR
EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.

 

Section 16.            Waiver of Jury Trial.

 

TO
THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY HEREBY WAIVES ANY RIGHT TO HAVE A JURY
PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR
OTHERWISE, BETWEEN THE PARTIES HERETO ARISING OUT OF, CONNECTED WITH, RELATED
TO, OR INCIDENTAL TO THE RELATIONSHIP BETWEEN ANY OF THEM IN CONNECTION WITH
THIS AGREEMENT, THE REPURCHASE DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED
HEREBY.  INSTEAD, ANY SUCH DISPUTE
RESOLVED IN COURT WILL BE RESOLVED IN A BENCH TRIAL WITHOUT A JURY.

 

Section 17.            Legal Matters.

 

The
Seller hereby acknowledges that (i) it has been advised by counsel of its
choosing in the negotiation, execution and delivery of the Repurchase
Documents; (ii) it has no fiduciary relationship with the Purchaser; and (iii) no
joint venture exists with the Purchaser.

 

25

 

Section 18.            Recourse Against Certain Parties.

 

No
recourse under or with respect to any obligation, covenant or agreement
(including, without limitation, the payment of any fees or any other
obligations) of the Purchaser or the Seller as contained in this Agreement, the
Repurchase Documents or any other agreement, instrument or document entered
into by the Purchaser, the Seller or any such party pursuant hereto or thereto
or in connection herewith or therewith shall be had against any administrator
of the Purchaser, the Seller or any incorporator, Affiliate (direct or
indirect), owner, member, partner, stockholder, officer, director, employee,
agent or attorney of the Purchaser, the Seller or of any such administrator, as
such, by the enforcement of any assessment or by any legal or equitable
proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood that the agreements of the
Purchaser and the Seller contained in this Agreement, the Repurchase Documents
and all of the other agreements, instruments and documents entered into by it
pursuant hereto or thereto or in connection herewith or therewith are, in each
case, solely the corporate obligations of the Purchaser and the Seller and that
no personal liability whatsoever shall attach to or be incurred by any administrator
of the Purchaser, the Seller or any incorporator, owner, member, partner,
stockholder, Affiliate (direct or indirect), officer, director, employee, agent
or attorney of the Purchaser, the Seller or of any such administrator, as such,
or any other of them, under or by reason of any of the obligations, covenants
or agreements of the Purchaser or the Seller contained in this Agreement, the
Repurchase Documents or in any other such instruments, documents or agreements,
or that are implied therefrom.

 

Section 19.            Protection of Right, Title and
Interest; Further Action.

 

(a)           The
Seller agrees that from time to time, at its expense, it will promptly execute
and deliver all instruments and documents, and take all actions, that the
Purchaser may request in order to perfect, protect or more fully evidence the
Transaction hereunder and the security interest granted in the Note and the
other Purchased Items, or to enable the Purchaser to exercise and enforce its
rights and remedies hereunder, under any Repurchase Document or under the Note
or the other Purchased Items.

 

(b)           If
the Seller fails to perform any of its obligations hereunder, the Purchaser may
(but shall not be required to) perform, or cause performance of, such
obligation; and the Purchaser’s costs and expenses incurred in connection
therewith shall be payable by the Seller. 
The Seller irrevocably appoints the Purchaser as its attorney—in—fact
and authorizes the Purchaser to act on behalf of the Seller (i) to file
financing statements necessary or desirable in the Purchaser’s discretion to
perfect and to maintain the perfection and priority of the security interest in
the Note and the other Purchased Items, and (ii) to file a carbon,
photographic or other reproduction of this Agreement or any financing statement
with respect to the Note and the other Purchased Items as a financing statement
in such offices as the Purchaser in its discretion deems necessary or desirable
to perfect and to maintain the perfection and priority of the interests in the Note
and the other Purchased Items.  This
appointment is coupled with an interest and is irrevocable.

 

Section 20.            Execution in Counterparts;
Severability; Integration.

 

(a)           This
Agreement may be executed in any number of counterparts and by different parties
hereto in separate counterparts (including by facsimile), each of which when so
executed shall be deemed to be an original and all of which when taken together
shall constitute one and the same agreement.

 

(b)           Each
provision of this Agreement shall be valid, binding and enforceable to the
fullest extent permitted by Applicable Law. 
In case any provision in or obligation, covenant, representation or
warranty under this Agreement shall be invalid, illegal, void or unenforceable
in any jurisdiction (either in its entirety or as applied to any Person, fact,
circumstance, action or inaction), the validity, legality and 

 

26

 

enforceability
of the remaining provisions or obligations, covenants, representations or warranties
or of such provision or obligation, covenant, representation or warranty in any
other jurisdiction or as applied to any Person, fact, circumstance, action or
inaction, shall not in any way be affected or impaired thereby.  To the extent permitted by Applicable Law,
the parties waive any provision of Applicable Law which prohibits or renders
void, unenforceable or invalid any provision hereof.

 

(c)           This
Agreement and any other Repurchase Document executed in connection herewith
contain the final and complete integration of all prior expressions by the
parties hereto and thereto with respect to the subject matter hereof and
thereof and shall constitute the entire agreement among the parties hereto and
thereto with respect to the subject matter hereof and thereof, superseding all
prior oral or written understandings.

 

Section 21.            Heading and Exhibits.

 

The
headings herein are for purposes of references only and shall not otherwise
affect the meaning or interpretation of any provision hereof.  The schedules and exhibits attached hereto
and referred to herein shall constitute a part of this Agreement and are
incorporated into this Agreement for all purposes.

 

Section 22.            Disclosure Relating to Certain
Federal Protections.

 

The parties acknowledge that they have been advised
that:

 

(a)           in
the case of a Transaction in which one of the parties is a broker or dealer
registered with the Securities and Exchange Commission (“SEC”) under Section 15
of the Securities Exchange Act of 1934, as amended, provisions of the
Securities Investor Protection Act of 1970 (“SIPA”) will not provide
protection to the other parties with respect to the Transaction hereunder;

 

(b)           in
the case of a Transaction in which one of the parties is a government
securities broker or a government securities dealer registered with the SEC
under Section 15C of the Exchange Act, SIPA will not provide protection to
the other parties with respect to the Transaction hereunder;

 

(c)           in
the case of a Transaction in which one of the parties is a financial
institution, funds held by the financial institution pursuant to a Transaction
hereunder are not a deposit and therefore are not insured by the Federal
Deposit Insurance Corporation or the National Credit Union Share Insurance
Fund, as applicable; and

 

(d)           in
the case of a Transaction in which one of the parties is an “insured depository
institution” as that term is defined in Section 1813(c)(2) of
Title 12 of the United States Code, funds held by the financial
institution pursuant to a Transaction hereunder are not a deposit and therefore
are not insured by the Federal Deposit Insurance Corporation, the Savings
Association Insurance Fund or the Bank Insurance Fund, as applicable.

 

Section 23.            Intent.

 

(a)           The
parties recognize that the Transaction is a “Repurchase Agreement” as
that term is defined in Section 101 of Title 11 of the United States
Bankruptcy Code (except insofar as the type of Note and the other Purchased
Items subject to such Transaction or the term of such Transaction would render
such definition inapplicable) and a “Securities Contract” as that term
is defined in Section 741 of Title 11 of the United States Code
(except insofar as the type of Note and the other Purchased Items subject to
such Transaction would render such definition inapplicable).  It is also understood and agreed 

 

27

 

that
this Agreement constitutes a “Master Netting Agreement” as that term is defined
in Section 101 of Title 11 of the United States Code.

 

(b)          The parties agree and acknowledge that if a party hereto is
an “Insured Depository Institution,” as such term is defined in the
Federal Deposit Insurance Act, as amended (“FDIA”), then the Transaction
hereunder is a “Qualified Financial Contract,” as that term is defined
in FDIA and any rules, orders or policy statements thereunder (except insofar
as the type of Note and the other Purchased Items subject to such Transaction
would render such definition inapplicable).

 

(c)           It
is understood that this Agreement constitutes a “Netting Contract”, as
such term is defined in and subject to Title IV of the Federal Deposit
Insurance Corporation Improvement Act of 1991 (“FDICIA”), and each
payment entitlement and payment obligation under the Transaction hereunder
shall constitute a “Covered Contractual Payment Entitlement” or “Covered
Contractual Payment Obligation”, respectively, as defined in and subject to
FDICIA (except insofar as one or both of the parties is not a “Financial
Institution” as that term is defined in FDICIA or regulations promulgated
thereunder).

 

(d)           It
is understood that any party’s right to liquidate the Note and the other
Purchased Items delivered to it in connection with the Transaction hereunder or
to exercise any other remedies pursuant to Section 7  is a contractual right to liquidate such Transaction as
described in Sections 555, 559 and 561 of Title 11 of the United States Code,
as amended.

 

Section 24.            Use of Employee Plan Assets.

 

(a)           If
assets of an employee benefit plan subject to any provision of ERISA are
intended to be used by either party hereto (the “Plan Party”) in a
Transaction, the Plan Party shall so notify the other party prior to the
Transaction.  The Plan Party shall
represent in writing to the other party that the Transaction does not constitute
a prohibited transaction under ERISA or is otherwise exempt therefrom, and the
other party may proceed in reliance thereon but shall not be required so to
proceed.

 

(b)           Subject to the last sentence of Subsection 24(a) above,
any such Transaction shall proceed only if the Seller furnishes or has
furnished to the Purchaser its most recent available audited statement of its
financial condition and its most recent subsequent unaudited statement of its
financial condition.

 

(c)           By
entering into a Transaction pursuant to this Section 24, the Seller
shall be deemed (i) to represent to the Purchaser that since the date of
the Seller’s latest such financial statements, there has been no material
adverse change in the Seller’s financial condition which Seller has not
disclosed to the Purchaser, and (ii) to agree to provide the Purchaser
with future audited and unaudited statements of its financial condition as they
are issued, so long as it is the Seller in any outstanding Transaction
involving a Plan Party.

 

Section 25.            Increased Costs; Capital
Adequacy; Illegality.

 

(a)           If
either (i) the introduction of or any change (including, without
limitation, any change by way of imposition or increase of reserve
requirements) in  or in the interpretation of any
law or regulation, or (ii) the compliance by the Purchaser  with any guideline or request from any central bank or
other Governmental Authority (whether or not having the force of law) shall (a) subject
the Purchaser to any Tax (except for Taxes on the overall net income of the
Purchaser), duty or other charge with respect to any ownership interest in the
Note and the other Purchased Items, or any right to enter into the Transaction
hereunder, or on any payment made hereunder, (b) impose, modify or deem
applicable any reserve requirement (including, without limitation, any reserve
requirement imposed by the Board of 

 

28

 

Governors
of the Federal Reserve System, but excluding any reserve requirement, if any,
included in the determination of the Price Differential), special deposit or
similar requirement against assets of, deposits with or for the amount of, or
credit extended by, the Purchaser or (c) impose any other condition
affecting the ownership interest in the Note and the other Purchased Items
conveyed to the Purchaser hereunder or the Purchaser’s rights hereunder, the
result of which is to increase the cost to the Purchaser or to reduce the
amount of any sum received or receivable by the Purchaser under this Agreement
and the other Repurchase Documents, then within ten (10) days after
demand by the Purchaser (which demand shall be accompanied by a statement
setting forth the basis for such demand), the Seller shall pay directly to the
Purchaser such additional amount or amounts as will compensate the Purchaser
for such additional or increased cost incurred or such reduction suffered.

 

(b)           If
either (i) the introduction of or any change in or in the interpretation
of any law, guideline, rule, regulation, directive or request or (ii) compliance
by the Purchaser with any law, guideline, rule, regulation, directive or
request from any central bank or other Governmental Authority or agency
(whether or not having the force of law), including, without limitation,
compliance by the Purchaser with any request or directive regarding capital
adequacy, has or would have the effect of reducing the rate of return on the
capital of the Purchaser as a consequence of its obligations hereunder or under
the other Repurchase Documents or arising in connection herewith or therewith
to a level below that which the Purchaser could have achieved but for such
introduction, change or compliance (taking into consideration the policies of
the Purchaser with respect to capital adequacy) by an amount deemed by the
Purchaser to be material, then from time to time, within ten (10) days
after demand by the Purchaser (which demand shall be accompanied by a statement
setting forth the basis for such demand), the Seller shall pay directly to the
Purchaser such additional amount or amounts as will compensate the Purchaser
for such reduction.  For the avoidance of
doubt, any interpretation of Accounting Research Bulletin No. 51 by the
Financial Accounting Standards Board shall constitute an adaptation, change,
request or directive subject to this Subsection 25(b).

 

(c)           If
the Purchaser shall notify the Seller that a Eurocurrency Disruption Event has
occurred, the Transaction in respect of which the Price Differential accrues at
the Eurocurrency Rate shall immediately be converted into a Transaction in
respect of which the Price Differential accrues at the Base Rate (plus the
applicable spread set forth in the Pricing Rate).

 

(d)           In
determining any amount provided for in this Section 25, the
Purchaser may use any reasonable averaging and attribution methods.  The Purchaser making a claim under this Section 25
shall submit to the Seller a written description as to such additional or
increased cost or reduction and the calculation thereof, which written
description shall be conclusive absent demonstrable error.  Without prejudice to the survival of any
other agreement of the Seller hereunder, the agreements and obligations of the
Seller contained in this Section 25 shall survive the termination
of this Agreement.

 

Section 26.            Taxes.

 

(a)           All
payments made by an Obligor in  respect of the
Note, the Participation and any other Purchased Item and all payments made by
the Seller, the Guarantor or the Pledgor under this Agreement and the other
Repurchase Documents will be made free and clear of and without deduction or
withholding for or on account of any Taxes. 
If any Taxes are required to be withheld from any amounts payable to the
Purchaser, then the amount payable by such Person will be increased (such
increase, the “Additional Amount”) such that every net payment made
under this Agreement and the other Repurchase Documents after withholding for
or on account of any Taxes (including, without limitation, any Taxes on such
increase) is not less than the amount that would have been paid had no such
deduction or withholding been deducted or withheld.  The foregoing obligation to pay Additional
Amounts, however, will not apply with respect to net income or franchise taxes
imposed on the Purchaser, with respect to payments required 

 

29

 

to
be made by the Seller, the Guarantor or the Pledgor under this Agreement and/or
the other Repurchase Documents, by a taxing jurisdiction in which the Purchaser
is organized, conducts business or is paying taxes (as the case may be).

 

(b)           The
Seller will indemnify the Purchaser for the full amount of Taxes payable by
such Person in respect of Additional Amounts and any liability (including
penalties, interest and expenses) arising therefrom or with respect
thereto.  All payments in respect of this
indemnification shall be made within ten (10) days from the date a
written invoice therefor is delivered to the Seller.

 

(c)           Within
thirty (30) days after the date of any payment by the Seller of any Taxes,
the Seller will furnish to the Purchaser, at its address set forth under its
name on the signature pages hereof, appropriate evidence of payment
thereof.  Without prejudice to the
survival of any other agreement of the Seller hereunder, the agreements and
obligations of the Seller contained in this Section 26 shall
survive the termination of this Agreement.

 

Section 27.            Due Diligence.

 

The
Seller acknowledges that the Purchaser has the right to perform continuing due
diligence and other reviews with respect to the Note and the other Purchased
Items and the Seller, the Guarantor and the Pledgor for purposes of verifying
compliance with the representations, warranties, covenants, agreements and
specifications made hereunder, under the Repurchase Documents, the Asset
Documents or otherwise, and the Seller agrees on behalf of itself and the
Guarantor and the Pledgor that, upon reasonable (but no less than one (1) Business
Day’s) prior notice, unless an Event of Default shall have occurred, in which
case no notice is required, to the Seller, as applicable, the Purchaser or its
authorized representatives shall be permitted during normal business hours to
examine, inspect, and make copies and extracts of, the books and records of the
Seller, the Guarantor and/or the Pledgor and any and all documents, records,
agreements, instruments or information relating to the Note and the other
Purchased Items in the possession or under the control of the Seller, the
Guarantor, the Pledgor and any Affiliates of the foregoing.  The Seller, the Guarantor and the Pledgor
also shall make available to the Purchaser a knowledgeable financial or
accounting officer for the purpose of answering questions respecting the
Seller, the Guarantor and the Pledgor, the Note and the other Purchased Items
and the Seller’s, the Guarantor’s and the Pledgor’s books and records.  The Seller, the Guarantor and the Pledgor
shall also make available to the Purchaser any accountants or auditors of the
Seller, the Guarantor and the Pledgor to answer any questions or provide any
documents as the Purchaser may require. 
The Seller shall also cause NRFC Luxembourg and each servicer or trustee
with respect to the Note and the other Purchased Items to cooperate with the
Purchaser by permitting the Purchaser to conduct due diligence reviews of files
of NRFC Luxembourg and each such servicer or trustee relating to the Note and
the other Purchased Items to the extent such reviews are permitted under the
terms of the Asset Documents.  The
Purchaser, at its option, has the right at any time to conduct a partial or
complete due diligence review on some or all of the Note and the other
Purchased Items purchased in a Transaction, including, without limitation,
ordering new credit reports and new appraisals on the related Mortgaged
Properties and otherwise re—generating the information used to originate such
Note and the other Purchased Items.  The
Purchaser may underwrite such Note and the other Purchased Items itself or
engage a mutually agreed upon third party underwriter to perform such
underwriting.  The Seller agrees to
reasonably cooperate with the Purchaser and any third party underwriter in
connection with such underwriting, including, but not limited to, providing the
Purchaser and any third party underwriter with access to any and all documents,
records, agreements, instruments or information relating to such Note and the
other Purchased Items in the possession, or under the control, of the
Seller.  The Seller shall pay all out—of—pocket
costs and expenses incurred by Purchaser in connection with the Purchaser’s
activities pursuant to this Section 27.

 

30

 

Section 28.            Disclosure Relating to Certain
Federal Protections.

 

The parties acknowledge that they have been advised
that:

 

(a)           in
the case of a Transaction in which one of the parties is a broker or dealer
registered with the Securities and Exchange Commission (“SEC”) under Section 15
of the Securities Exchange Act of 1934, as amended, the provisions of the
Securities Investor Protection Act of 1970 (“SIPA”) will not provide
protection to the other parties with respect to the Transaction hereunder;

 

(b)           in
the case of a Transaction in which one of the parties is a government
securities broker or a government securities dealer registered with the SEC
under Section 15C of the Exchange Act, SIPA will not provide protection to
the other parties with respect to the Transaction hereunder;

 

(c)           in
the case of a Transaction in which one of the parties is a financial
institution, funds held by the financial institution pursuant to a Transaction
hereunder are not a deposit and therefore are not insured by the Federal
Deposit Insurance Corporation or the National Credit Union Share Insurance
Fund, as applicable; and

 

(d)           in
the case of a Transaction in which one of the parties is an “insured depository
institution” as that term is defined in Section 1813(c)(2) of Title 12
of the United States Code, funds held by the financial institution pursuant to
a Transaction hereunder are not a deposit and therefore are not insured by the
Federal Deposit Insurance Corporation, the Savings Association Insurance Fund
or the Bank Insurance Fund, as applicable.

 

Section 29.            Intent.

 

(a)           The
parties recognize that the Transaction is a “Repurchase Agreement” as
that term is defined in Section 101 of Title 11 of the Bankruptcy Code
(except insofar as the type of Note subject to such Transaction or the term of
such Transaction would render such definition inapplicable) and a “Securities
Contract” as that term is defined in Section 741 of Title 11 of
the United States Code (except insofar as the type of Note subject to such
Transaction would render such definition inapplicable).  It is understood that this Agreement
constitutes a “Master Netting Agreement” as that term is defined in Section 101
of Title 11 of the United State Code.

 

(b)           The parties agree and acknowledge that if a party hereto is
an “Insured Depository Institution,” as such term is defined in the
Federal Deposit Insurance Act, as amended (“FDIA”), then the Transaction
hereunder is a “Qualified Financial Contract,” as that term is defined
in FDIA and any rules, orders or policy statements thereunder (except insofar
as the type of Note subject to such Transaction would render such definition
inapplicable).

 

(c)           It
is understood that this Agreement constitutes a “Netting Contract” as
defined in and subject to Title IV of the Federal Deposit Insurance Corporation
Improvement Act of 1991 (“FDICIA”) and each payment entitlement and
payment obligation under the Transaction hereunder shall constitute a “Covered
Contractual Payment Entitlement” or “Covered Contractual Payment
Obligation”, respectively, as defined in and subject to FDICIA (except
insofar as one or both of the parties is not a “Financial Institution”
as that term is defined in FDICIA or regulations promulgated thereunder).

 

(d)           It
is understood that any party’s right to liquidate Purchased Items delivered to
it in connection with the Transaction hereunder or to exercise any other
remedies pursuant to Section 7 is a contractual right to liquidate
such Transaction as described in Sections 555 and 559 of Title 11 of the United
States Code, as amended.

 

31

 

Section 30.            Judgment Currency.If, for the purposes of obtaining
judgment in any court, it is necessary to convert a sum due hereunder or any
other Repurchase Document in one currency into another currency, the rate of
exchange used shall be that at which in accordance with normal banking
procedures the Purchaser could purchase the first currency with such other
currency on the Business Day preceding that on which final judgment is
given.  The obligation of the Seller
shall, notwithstanding any judgment in a currency (the “Judgment Currency”)
other than that in which such sum is denominated in accordance with the
applicable provisions of this Agreement (the “Agreement Currency”), be
discharged only to the extent that on the Business Day following receipt by the
Purchaser of any sum adjudged to be so due in the Judgment Currency, the
Purchaser may in accordance with normal banking procedures purchase the
Agreement Currency with the Judgment Currency. 
If the amount of the Agreement Currency so purchased is less than the
sum originally due to the Purchaser from the Seller in the Agreement Currency,
the Seller agrees, as a separate obligation and notwithstanding any such
judgment, to indemnify the Purchaser or the Person to whom such obligation was
owing against such loss.  If the amount
of the Agreement Currency so purchased is greater than the sum originally due
to the Purchaser in such currency, the Purchaser agrees to return the amount of
any excess to the Seller (or to any other Person who may be entitled thereto
under Applicable Law).

 

Section 30.            Service of Process.At all times while this Agreement is in
effect, the Seller shall maintain an agent for service of process in the United
States of America.  The Seller hereby
appoints Robert J. Grados, Esq., whose address is Paul Hastings
Janofsky & Walker LLP, 75 East 55th Street, New York, New York  10022, as its agent for service of process.  If for any reason the Seller’s process agent
is unable to act as such, the Seller will promptly notify the Purchaser and
within thirty (30) days will appoint a substitute process agent acceptable
to the Purchaser.  If no such substitute
process agent is appointed, service on the original process agent will continue
to constitute good service of process. 
Nothing in this Agreement will affect the right of the Purchaser to
serve process in any other manner permitted by Applicable Law.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

32

 

IN
WITNESS WHEREOF, the Seller and the Purchaser have caused their names to be
signed hereto by their respective duly authorized officers as of the date first
above written.

 

 

	
   

  	
   

  	
  Executed
  as a deed by:

  
	
   

  	
   

  	
   

  
	
  THE
  SELLER:

  	
   

  	
  NRF–REINDEER
  LTD.,

  
	
   

  	
   

  	
  a
  Cayman Islands exempted limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Daniel R. Gilbert

  
	
   

  	
   

  	
  Name:

  	
  Daniel
  R. Gilbert

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In
  the presence of:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address
  for Notices:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NRF–Reindeer
  Ltd.

  
	
   

  	
   

  	
  c/o
  Walkers SPV Ltd

  
	
   

  	
   

  	
  Walker
  House, 87 Mary Street

  
	
   

  	
   

  	
  George
  Town, Grand Cayman KY1–9001

  
	
   

  	
   

  	
  Cayman
  Islands

  
	
   

  	
   

  	
  Attention:

  	
  Directors

  
	
   

  	
   

  	
  Facsimile
  No.:

  	
  (345)
  949–7886

  
	
   

  	
   

  	
  Confirmation
  No.:

  	
  (345)
  949–0100

  
					

 

[Signatures Continued on the
Following Page]

 

S-1

 

	
  THE
  PURCHASER:

  	
   

  	
  WACHOVIA
  BANK, N.A. (LONDON BRANCH)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Joseph F. Cannon

  
	
   

  	
   

  	
  Name:

  	
  Joseph
  F. Cannon

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address
  for Notices:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Wachovia
  Bank, N.A. (London Branch)

  
	
   

  	
   

  	
  c/o
  Wachovia Bank, National Association

  
	
   

  	
   

  	
  One
  Wachovia Center, Mail Code: NC0166

  
	
   

  	
   

  	
  301
  South College Street

  
	
   

  	
   

  	
  Charlotte,
  North Carolina 28288

  
	
   

  	
   

  	
  Attention:

  	
  Joseph
  Cannon

  
	
   

  	
   

  	
  Facsimile
  No.:

  	
  (704)
  715–0066

  
	
   

  	
   

  	
  Confirmation
  No.:

  	
  (704)
  383–2324

  
					

 

S-2

 

	
  Acknowledged
  by:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  NRFC
  LUXEMBOURG HOLDINGS I S.À R.L.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Alain Heinz

  	
   

  	
   

  
	
  Name:

  	
  Alain
  Heinz

  	
   

  	
   

  
	
  Title:

  	
  Manager

  	
   

  	
   

  

 

S-3

 

EXHIBIT A

 

DEFINED TERMS

 

Section 1.              Defined Terms.

 

“Account
Control Agreement”:  An account
control agreement in the form of Exhibit G attached hereto duly
executed by the parties thereto.

 

“Additional
Amounts”:  Defined in Subsection 26(a) of
this Agreement.

 

“Additional
Asset Documents”:  Defined in Subsection 2(g) of
this Agreement.

 

“Advance
Rate”:  100%.

 

“Affiliate”:  With respect to a Person, means any other
Person that, directly or indirectly, controls, is controlled by or is under
common control with such Person, or is a director of such Person.  For purposes of this definition, “control”
(including the terms “controlling,” “controlled by” and “under common control
with”) when used with respect to any specified Person means the possession,
direct or indirect, of the power to vote 20% or more of the voting securities
of such Person or to direct or cause the direction of the management or
policies of such Person, whether through the ownership of voting securities, by
contract or otherwise.

 

“Aggregate
Unpaids”:  At any time, an amount
equal to the sum of the aggregate Purchase Price outstanding for the
Transaction, the aggregate Price Differential outstanding, outstanding interest
at the Default Rate, if any, Margin Deficits, if any, Breakage Costs, if any,
Costs, if any, Increased Costs, if any, Taxes, if any, Additional Amounts, if
any, expenses payable under Subsection 8(b) and all other
amounts owed by the Seller to the Purchaser or by the Seller or any other
Person under this Agreement, the Repurchase Documents and any other document or
agreement delivered in connection with the transactions contemplated by this
Agreement or the Repurchase Documents (whether due or accrued).

 

“Agreement”:  Defined in the Preamble of this
Agreement.

 

“Agreement
Currency”:  Defined in Section 30
of this Agreement.

 

“Applicable
Law”:  For any Person or Property of
such Person, all existing and future applicable laws, rules, regulations
(including temporary and final income tax regulations), statutes, treaties,
codes, ordinances, permits, certificates, orders and licenses of and
interpretations by any Governmental Authority (including, without limitation,
usury laws, the Federal Truth in Lending Act, as amended from time to time, and
Regulation Z and Regulation B of the Board of Governors of the
Federal Reserve System), and applicable judgments, decrees, injunctions, writs,
awards or orders of any court, arbitrator or other administrative, judicial or
quasi—judicial tribunal or agency of competent jurisdiction (whether foreign or
domestic).

 

“Approved
Servicing Fee”:  25 basis points
per annum based on the aggregate Repurchase Price outstanding.

 

“Asset
Documents”:  The documents
evidencing, governing, relating to, affecting or securing the Note and the other
Purchased Items contained or required to be contained in the Asset File
(including all 

 

A-1

 

amendments
and modifications thereto), as such Asset Documents are amended, modified,
restated, replaced, waived, substituted, supplemented or extended from time to
time.

 

“Asset
File”:  Defined in Subsection 2(b) of
this Agreement.

 

“Asset
Value”:  As of any date of
determination for the Note, the lesser of (a) the product of the Book
Value of the Note times the Advance Rate and (b) the product of the
Market Value of the Note times the Advance Rate; provided, however,
the Asset Value of the Note may be reduced (including in the Purchaser’s
discretion to zero (0)) (A) in respect of which there is a breach of
any representation or warranty set forth in Subsection 5(w) (assuming
each representation and warranty is made as of the date the Asset Value is
determined), (B) any statement made or information provided by the Seller
to the Purchaser with respect to the Note, the other Purchased Items or the
Loan is materially untrue in any respect, (C) any representation or
warranty regarding the Note, the other Purchased Items or the Loan contained in
the Asset File is materially untrue in any respect or (D) in respect of
which the complete Asset File has not been delivered to the Purchaser within
the time period required by this Agreement.

 

“Assignment”:  An Assignment in the form of Exhibit E
attached hereto and executed by the Seller in blank.

 

“Bailee
Agreement”:  Defined in Subsection 2(c)(ii) of
this Agreement.

 

“Bankruptcy
Code”:  The United States Bankruptcy
Reform Act of 1978 (11 U.S.C. § 101, et seq.), as
amended from time to time.

 

“Base
Rate”:  On any date, a fluctuating
rate per annum equal to (a) the lower of (i) the Prime Rate or (ii) the
Federal Funds Rate, plus (b) 1.0%.

 

“Benefit
Plan”:  Any employee benefit plan as
defined in Section 3(3) of ERISA in respect of which the Seller or
any ERISA Affiliate of the Seller is, or at any time during the immediately
preceding six (6) years was, an “employer” as defined in Section 3(5) of
ERISA.

 

“Book
Value”:  With respect to the Note at
any time, an amount, as certified by the Seller, equal to the lesser of (a) face
or par value and (b) the price that such Seller initially paid or advanced
for or in respect of the Note, as such Book Value may be marked down by the
Seller from time to time, including, as applicable, any loss/price adjustments,
less an amount equal to the sum of all principal payments or paydowns
paid and realized losses recognized relating to the Note; provided, however,
any such markdowns or adjustments must be made in good faith and shall be
disclosed in writing to the Purchaser.

 

“Breakage Costs”: Any amount or amounts as
shall compensate the Purchaser for any loss, cost or expense incurred by the
Purchaser (as determined by the Purchaser in its discretion) as a result of a
prepayment by the Seller, the Guarantor or the Pledgor of all or any portion of
any Repurchase Price and any losses, costs and/or expenses that the Purchaser
may sustain or incur arising from the reemployment of funds obtained by the
Purchaser hereunder or from fees payable to terminate the deposits from which
such funds were obtained.

 

“Borrower”:  Defined in the Mezzanine Finance Documents.

 

“Business Day”:  Any day other than a Saturday, Sunday or
other day on which commercial banks are authorized to close under the
Applicable Laws of, or are in fact closed in, the state where the Purchaser’s
office is located and, if such day relates to any interest rate settings, any
fundings, disbursements, 

 

A-2

 

settlements and payments
in Euro, or any other dealings in Euro to be carried out pursuant to this
Agreement, a Target Day.

 

“Capital
Lease Obligations”:  For any Person,
all obligations of such Person to pay rent or other amounts under a lease of
(or other agreement conveying the right to use) Property to the extent such
obligations are required to be classified and accounted for as a capital lease
on a balance sheet of such Person under GAAP, and, for purposes of this
Agreement, the amount of such obligations shall be the capitalized amount
thereof, determined in accordance with GAAP.

 

“Capital
Stock”:  With respect to any Person,
any share of capital stock of (or other ownership or profit interests in) such
Person, any warrant, option or other right for the purchase or other
acquisition from such Person of any share of capital stock of (or other
ownership or profit interests in) such Person, any security convertible into or
exchangeable for any share of capital stock of (or other ownership or profit
interests in) such Person or warrant, right or option for the purchase or other
acquisition from such Person of such shares (or such other interests), and any
other ownership or profit interest in such Person (including, without
limitation, partnership, member or trust interests therein), whether voting or
nonvoting, and whether or not such share, warrant, option, right or other
interest is authorized or otherwise existing on any date of determination.

 

“Closing”:  Defined in Section 3 of this
Agreement.

 

“Closing
Date”:  Defined in Section 1
of this Agreement.

 

“Code”:  The Internal Revenue Code of 1986, as amended
from time to time.

 

“Collection
Account”:  The collection account
identified on Exhibit D attached hereto which is subject to the
Account Control Agreement.  The Seller
shall not have any rights of withdraw from or any rights in or to the
Collection Account, except to the limited extent expressly provided in Subsection 4(f) with
regard to the Seller’s right under certain circumstances to receive payments
from the Collection Account.

 

“Contractual
Obligation”:  With respect to any
Person, any provision of any securities issued by such Person or any indenture,
mortgage, deed of trust, contract, undertaking, agreement, instrument or other
document to which such Person is a party or by which it or any of its Property
is bound or is subject.

 

“Cost”:  Defined in Subsection 8(a) of
this Agreement.

 

“Debt”:  Defined in Subsection 7(a) of
this Agreement.

 

“Default
Rate”: An annual rate of interest equal to (a) the lesser of (i) the
highest rate allowable by Applicable Law and (ii) the Pricing Rate plus
(b) 500 basis points.

 

“Derivatives
Contract”:  Any and all rate swap
transactions, basis swaps, credit derivative transactions, forward rate
transactions, commodity swaps, commodity options, forward commodity contracts,
equity or equity index swaps or options, note or note price or note index swaps
or options or forward note or forward note price or forward note index
transactions, interest rate options, forward foreign exchange transactions, cap
transactions, floor transactions, collar transactions, currency swap
transactions, cross—currency rate swap transactions, currency options, spot
contracts, or any other similar transactions or any combination of any of the
foregoing (including any options to enter into any of the foregoing), whether
or not any such transaction is governed by or subject to any master
agreement.  Not in limitation of the
foregoing, the term “Derivatives Contract” includes any and all transactions of
any kind, and the related confirmations, which are subject to the terms and
conditions of, or governed by, any form of master 

 

A-3

 

agreement
published by the International Swaps and Derivatives Association, Inc.,
any International Foreign Exchange Master Agreement, or any other master
agreement, including any such obligations or liabilities under any such master
agreement.

 

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

 

“EMU Legislation”
The legislative measures of the European Council for the introduction of,
changeover to or operation of a single or unified European currency.

 

“Environmental
Laws”:  Any and all Applicable Laws
and all other foreign, federal, state and local laws, statutes, ordinances,
rules, regulations, permits, licenses, approvals, interpretations and orders of
courts or Governmental Authorities, relating to the protection of human health
or the environment, including, but not limited to, requirements pertaining to
the manufacture, processing, distribution, use, treatment, storage, disposal,
transportation, handling, reporting, licensing, permitting, investigation or
remediation of hazardous materials. 
Environmental Laws include, without limitation, the Comprehensive
Environmental Response, Compensation, and Liability Act (42 U.S.C.
§ 9601 et seq.), the Hazardous Material Transportation Act
(49 U.S.C. § 331 et seq.), the Resource Conservation and
Recovery Act (42 U.S.C. § 6901 et seq.), the Federal Water
Pollution Control Act (33 U.S.C. § 1251 et seq.), the Clean
Air Act (42 U.S.C. § 7401 et seq.), the Toxic Substances
Control Act (15 U.S.C. § 2601 et seq.), the Safe Drinking
Water Act (42 U.S.C. § 300, et seq.), the Environmental
Protection Agency’s regulations relating to underground storage tanks
(40 C.F.R. Parts 280 and 281), and the Occupational Safety and Health
Act (29 U.S.C. § 651 et seq.), and the rules and
regulations thereunder, each as amended, modified, waived, supplemented,
extended, restated or replaced from time to time.

 

“ERISA”:  The Employee Retirement Income Security Act
of 1974, as the same are amended from time to time, and the regulations
promulgated and rulings issued thereunder, as the same are amended from time to
time.

 

“ERISA
Affiliate”:  (a) Any corporation
that is a member of the same controlled group of corporations (within the
meaning of Section 414(b) of the Code) as the Seller, the Guarantor
or the Pledgor, (b) a trade or business (whether or not incorporated)
under common control (within the meaning of Section 414(c) of the
Code) with the Seller, the Guarantor or the Pledgor, or (c) a member of
the same affiliated service group (within the meaning of Section 414(m) of
the Code) as the Seller, the Guarantor, the Pledgor, any corporation described
in clause (a) above or any trade or business described in clause (b) above.

 

“Euro” and “EUR”:  The lawful currency of the Participating
Member States introduced in accordance with the EMU Legislation.

 

“Eurocurrency Rate”  For any Interest Period, the rate per annum
equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as
published by Reuters (or other commercially available source providing
quotations of BBA LIBOR as designated by the Purchaser from time to time) at approximately
11:00 a.m., London time, two Business Days prior to the commencement of
such Interest Period, for deposits in the Euros (for delivery on the first day
of such Interest Period) with a term equivalent to such Interest Period.  If such rate is not available at such time
for any reason, then the “Eurocurrency Rate” for 

 

A-4

 

such Interest Period
shall be the rate per annum determined by the Purchaser to be the rate at which
deposits in Euros for delivery on the first day of such Interest Period in Same
Day Funds in the approximate amount of the Purchase Price of the Transaction,
continued or converted by the Purchaser and with a term equivalent to such
Interest Period would be offered by Purchaser’s London Branch (or other
Purchaser’s branch or Affiliate) to major banks in the London or other offshore
interbank market for such currency at their request at approximately 11:00 a.m.
(London time) two Business Days prior to the commencement of such Interest
Period.

 

“Eurocurrency
Disruption Event”:  If the Purchaser or any assignee, pledgor
or participant determines that (i) any Applicable Law has made it
unlawful, or that any Governmental Authority has asserted that it is unlawful,
for any such Person or its applicable lending office to make, maintain or fund
in the Eurocurrency Rate, or to determine or charge interest rates based upon
the Eurocurrency Rate, or any Governmental Authority has imposed material
restrictions on the authority of any such Person to purchase or sell, or to
take deposits of Euros in the applicable interbank market, or (ii) for any
reason in connection with any request for a Eurocurrency Rate funding, or a
conversion to or continuation thereof that (A) deposits are not being
offered to banks in the applicable offshore interbank market for Euros for the
applicable amount and Interest Period of such funding, (B) adequate and
reasonable means do not exist for determining the Eurocurrency Rate for any requested Interest Period with respect
to a proposed Eurocurrency Rate funding, or (C) the Eurocurrency Rate for any requested Interest Period with
respect to a proposed Eurocurrency Rate funding does not adequately and fairly
reflect the cost to any such Persons of funding such Eurocurrency Rate funding.

 

“Event
of Default”:  Defined in Subsection 4(b) of
this Agreement.

 

“Exchange
Act”:  The Securities Exchange Act of
1934, as amended from time to time.

 

“FDIA”:  Defined in Subsection 23(b) of
this Agreement.

 

“FDICIA”:  Defined in Subsection 23(c) of
this Agreement.

 

“Federal
Funds Rate”:  For any period, a
fluctuating interest rate per annum equal for each day during such period to
the weighted average of the overnight federal funds rates as in Federal Reserve
Board Statistical Release H.15(519) or any successor or substitute
publication selected by the Purchaser (or, if such day is not a Business Day,
for the next succeeding Business Day), or, if, for any reason, such rate is not
available on any day, the rate determined, in the sole opinion of the
Purchaser, to be the rate at which overnight federal funds are being offered in
the national federal funds market at 9:00 a.m.

 

“Fitch”:  Fitch Ratings, Inc. and any successor
thereto

 

“Fixed
Repurchase Date”:  March 27,
2008.

 

“GAAP”:  Generally accepted accounting principles as
in effect from time to time in the United States.

 

“Governing
Documents”:  As to any Person, the
articles or certificate of incorporation or formation, by—laws, limited
liability company agreement, general partnership agreement, limited partnership
agreement, trust agreement, joint venture agreement or other applicable
organizational or governing documents of such Person.

 

“Governmental
Authority”:  Any nation or
government, any state or other political subdivision thereof, any central bank
(or similar monetary or regulatory authority) thereof, any body or entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government, any

 

A-5

 

court
or arbitrator having jurisdiction over such Person, any of its Subsidiaries or
any of its Properties, and any accounting board or authority (whether or not a
part of government) that is responsible for the establishment or interpretation
of national or international accounting principles, in each case whether
foreign or domestic.

 

“Guaranty
Agreement:  That certain Limited
Guaranty Agreement, dated the date hereof, executed by the Guarantor in favor
of the Purchaser, as amended, modified, restated, replaced, waived,
substituted, supplemented or extended from time to time.

 

“Guarantor”:  NorthStar Realty Finance Corp. a Maryland
corporation, together with its successors and permitted assigns.

 

“Income”:  With respect to the Note and the related
Purchased Items, at any time, all of the following:  collections, prepayments, recoveries,
insurance and condemnation proceeds and all other payments or proceeds of any
kind or nature whatsoever on or in respect of the Note and the related
Purchased Items, including, without limitation, any principal thereof then
payable and all interest, fees, prepayment fees or premiums, exit fees,
extension fees, default interest, late fees, late charges, dividends, gains,
receipts, allocations, profits, payments in kind, returns or repayment of
contributions or other distributions payable thereon and amount received from
any related Derivatives Contracts (if any) supporting such Note or the related
Purchased Items; provided, however, provided there is no Event of
Default, the Seller may net the Approved Servicing Fee from Income.

 

“Increased
Costs”:  Amounts required to be paid
pursuant to Section 25 of this Agreement.

 

“Indebtedness”:  Means, with respect to any Person and its
Subsidiaries determined on a consolidated basis, at the time of computation
thereof, all of the following (without duplication):  (a) all obligations of such Person in
respect of money borrowed (including without limitation principal, interest,
assumption fees, prepayment fees, contingent interest and other monetary
obligations whether choate or inchoate); (b) all obligations of such
Person, whether or not for money borrowed (i) represented by notes
payable, letters of credit, or drafts accepted, in each case representing
extensions of credit, (ii) evidenced by notes, debentures, notes or
similar instruments, or (iii) constituting purchase money indebtedness,
conditional sales contracts, title retention debt instruments or other similar
instruments, upon which interest charges are customarily paid or that are
issued or assumed as full or partial payment for property or services rendered;
(c) Capital Lease Obligations of such Person; (d) all reimbursement
obligations of such Person under any letters of credit or acceptances (whether
or not the same have been presented for payment); (e) all Off—Balance
Sheet Obligations of such Person; (f) all obligations of such Person to
purchase, redeem, retire, defease or otherwise make any payment in respect of
any Mandatory Redeemable Stock issued by such Person or any other Person
(inclusive of forward equity contracts), valued at the greater of its voluntary
or involuntary liquidation preference plus accrued and unpaid dividends; (g) as
applicable, all obligations of such Person (but not the obligation of others)
in respect of any keep well arrangements, credit enhancements, contingent or
future funding obligations under any participation or any obligation senior to
the participation, unfunded interest reserve amount under any participation or
any obligation that is senior to the participation, purchase obligation,
repurchase obligation, takeout commitment or forward equity commitment, in each
case evidenced by a binding agreement (excluding any such obligation to the
extent the obligation can be satisfied by the issuance of Capital Stock (other
than Mandatory Redeemable Stock)); (h) net obligations under any
Derivative Contract not entered into as a hedge against existing Indebtedness,
in an amount equal to the Derivatives Termination Value thereof; (i) all
Indebtedness of other Persons which such Person has guaranteed or is otherwise
recourse to such Person (except for guaranties of customary exceptions for
fraud, misapplication of funds, environmental indemnities and other similar
exceptions to recourse liability (but not exceptions relating to bankruptcy,
insolvency, receivership or other similar events)); (j) all Indebtedness
of another Person secured by (or for which the 

 

A-6

 

holder
of such Indebtedness has an existing right, contingent or otherwise, to be
secured by) any Lien (other than certain Permitted Liens) on property or assets
owned by such Person, even though such Person has not assumed or become liable
for the payment of such Indebtedness or other payment obligation; provided,
however, if such Person has not assumed or become liable for the payment
of such Indebtedness, then for the purposes of this definition the amount of
such Indebtedness shall not exceed the market value of the property subject to
such Lien).

 

“Indemnified
Party”:  Defined in Subsection 8(a) of
this Agreement.

 

“Independent
Director”:  A natural Person who (a) is
not at the time of initial appointment as Independent Director, and may not
have been at any time during the five (5) years preceding such
initial appointment or at any time while serving as Independent Director, (i) a
stockholder, partner, member or direct or indirect legal or beneficial owner of
the Seller, the Guarantor or any Affiliate of the foregoing; (ii) a
contractor, creditor, customer, supplier, director (with the exception of
serving as the Independent Director of the Seller), officer, employee,
attorney, manager or other Person who derives any of its purchases or revenues
from its activities with the Seller, the Guarantor or any Affiliate of the
foregoing; (iii) a natural Person who controls (directly or indirectly or
otherwise) the Seller, the Guarantor or any Affiliate of the foregoing or who
controls or is under common control with any Person that would be excluded from
serving as an Independent Director under (i) or (ii),
above; or (iv) a member of the immediate family of a natural Person
excluded from serving as an Independent Director under (i) or (ii) above
and (b) otherwise satisfies the then current requirements of the Rating
Agencies.  A Person who is an employee of
a nationally recognized organization that supplies independent directors and
who otherwise satisfies the criteria in clause (a) but for the
fact that such organization receives payment from the Seller or the Guarantor
for providing such independent director shall not be disqualified from serving
as an Independent Director hereunder.

 

“Insolvency
Event”:  With respect to a specified
Person, (a) the filing of a decree or order for relief by a court having jurisdiction
in the premises in respect of such Person or any substantial part of its
Property in an involuntary case under any applicable Insolvency Law now or
hereafter in effect, or appointing a receiver, liquidator, assignee, custodian,
trustee, sequestrator or similar official for such Person or for any
substantial part of its Property, or ordering the winding—up or liquidation of
such Person’s affairs, and such decree or order shall remain unstayed and in
effect for a period of sixty (60) consecutive days; or (b) the
commencement by such Person of a voluntary case under any applicable Insolvency
Law now or hereafter in  effect, or the
consent by such Person to the entry of an order for relief in an involuntary
case under any such law, or the consent by such Person to the appointment of or
taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official for such Person or for any substantial part of
its Property, or the making by such Person of any general assignment for the
benefit of creditors, or the failure by such Person generally to pay its debts
as such debts become due, or the taking of action by such Person in furtherance
of any of the foregoing.

 

“Insolvency
Laws”:  The Bankruptcy Code and all
other applicable foreign or domestic liquidation, conservatorship, bankruptcy,
moratorium, rearrangement, receivership, insolvency, reorganization, suspension
of payments or similar debtor relief laws from time to time in effect affecting
the rights of creditors generally.

 

“Insolvency
Proceeding”:  Any case, action or
proceeding before any court or other Governmental Authority relating to any
Insolvency Event.

 

“Intercreditor
Agreement”:  That certain mezzanine
intercreditor agreement, dated September 6, 2006, among Coöperative
Centrate Riaffeisen — Boerenleenbank B.A. London Branch, Goldman Sachs Credit 

 

A-7

 

Partners,
L.P., ABN AMRO Transfers Limited and Goldman Sachs International, as amended,
modified, restated, replaced, waived, substituted, supplemented or extended
from time to time.

 

“Interest Period”
The period commencing on the Closing Date and ending on the date three months
thereafter; provided, however, (i) any Interest Period that
would otherwise end on a day that is not a Business Day shall be extended to
the next succeeding Business Day unless such Business Day falls in another
calendar month, in which case such Interest Period shall end on the next
preceding Business Day; (ii) any Interest Period that begins on the last
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period)
shall end on the last Business Day of the calendar month at the end of such
Interest Period; and (iii) no Interest Period shall extend beyond the
Fixed Repurchase Date.

 

“Judgment
Currency”:  Defined in Section 30
of this Agreement.

 

“Lien”:  Any mortgage, lien, pledge, charge, right,
claim, security interest or encumbrance of any kind of or on any Person’s
assets or properties in favor of any other Person (including any UCC financing
statement or any similar instrument filed against such Person’s assets or
properties).

 

“Loan”:  Each of the loans evidenced by the Senior
Finance Documents and the Mezzanine Finance Documents.

 

“Mandatory
Redeemable Stock”:  Means, with
respect to any Person and any
Subsidiary thereof, any Capital Stock of such Person which by the terms
of such Capital Stock (or by the terms of any security into which it is convertible
or for which it is exchangeable or exercisable), upon the happening of any
event or otherwise (a) matures or is required to be redeemed, pursuant to
a sinking fund obligation or otherwise (other than any Capital Stock to the
extent redeemable in exchange for common stock or other equivalent common
Capital Stock), (b) is convertible into or exchangeable or exercisable for
Indebtedness or Mandatory Redeemable Stock, or (c) is redeemable at the
option of the holder thereof, in whole or in part (other than any Capital Stock
which is redeemable solely in exchange for common stock or other equivalent
common Capital Stock); in each case, on or prior to the maturity date of the
Agreement.

 

“Margin
Deficit”:  Defined in Subsection 4(i) of
this Agreement.

 

“Margin
Deficit Notice”:  Defined in Subsection 4(i) of
this Agreement.

 

“Market
Value”:  With respect to the Note at
any time, the price at which such Note could readily be sold, as determined by
the Purchaser in its discretion based on such sources and information as the
Purchaser may determine to rely on its discretion (which value may be
determined to be zero), as such Market Value may be adjusted by the Purchaser
as the Purchaser determines in its discretion.

 

“Material
Adverse Effect”:  A material adverse
effect on (a) the business, operations, financial condition of the Seller,
the Guarantor, the Pledgor, NRFC Luxembourg or any of their Affiliates of the
foregoing, (b) the ability of the Seller, the Guarantor, the Pledgor or
NRFC Luxembourg to perform its obligations under any of the Repurchase
Documents or Asset Documents to which it is a party, (c) the validity or
enforceability of any of the Repurchase Documents or the Asset Documents, (d) the
rights and remedies of the Purchaser under any of the Repurchase Documents or
the Asset Documents, (e) the timely payment of any amounts payable under
the Repurchase Documents or the Asset Documents, or (f) the Market Value
or Book Value of the Note.

 

“Materials
of Environmental Concern”:  Any mold,
petroleum (including, without limitation, crude oil or any fraction thereof) or
petroleum products (including, without limitation, gasoline), or any hazardous
or 

 

A-8

 

toxic
substances, materials or wastes, defined as such in or regulated under any
Environmental Law, including, without limitation, asbestos, polychlorinated
biphenyls and urea—formaldehyde insulation.

 

“Mezzanine
Finance Documents”:  As defined the
Intercreditor Agreement.

 

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

 

“Mortgaged
Property”:  Any Property securing,
directly or indirectly, the Note, the other Purchased Items and/or the Loan.

 

“Multiemployer
Plan”:  A “multiemployer plan” as
defined in Section 4001(a)(3) of ERISA that is or was at any time
during the current year or the immediately preceding five (5) years
contributed to by the Seller or any ERISA Affiliate on behalf of its employees.

 

“NRFC Luxembourg”:  NRFC Luxembourg
Holdings I S.à r.l., together with
its successors and assigns.

 

“Note”:  Defined in the Recitals of this
Agreement.

 

“Obligor”:  Individually and collectively, as the context
may require, the obligor or obligors under the Note or any Purchased Items,
including, but not limited to, any guarantor thereof, the Borrowers or obligors
under the Loan, including any guarantor thereof, and any Person that has not
signed any debt instrument but owns an interest in the related Mortgaged
Property, which interest has been encumbered to secure any of the foregoing.

 

“Off—Balance Sheet Obligations”:  With respect to any Person and its
Subsidiaries determined on a consolidated basis as of any date of determination
thereof, without duplication and to the extent not included as a liability on
the consolidated balance sheet of such Person and its Subsidiaries in accordance with
GAAP:  (a) the monetary obligations
under any financing lease or so—called “synthetic,” tax retention or off—balance
sheet lease transaction which, upon the application of any Insolvency Laws to
such Person or any of its Subsidiaries, would be characterized as indebtedness;
(b) the monetary obligations under any sale and leaseback transaction
which does not create a liability on the consolidated balance sheet of such
Person and its Subsidiaries; or (c) any other monetary obligation arising
with respect to any other transaction which (i) is characterized as
indebtedness for tax purposes but not for accounting purposes in accordance
with GAAP or (ii) is the functional equivalent of or takes the place of borrowing
but which does not constitute a liability on the consolidated balance sheet of
such Person and its Subsidiaries (for purposes of this clause (c),
any transaction structured to provide tax deductibility as interest expense of
any dividend, coupon or other periodic payment will be deemed to be the
functional equivalent of a borrowing).

 

“Opinion
of Counsel”:  A written opinion of
counsel, which opinion and which counsel are acceptable to the Purchaser in its
reasonable discretion.

 

“Participating Member
State”:  Each state so described in
any EMU Legislation.

 

“Participation”:  The participation interest held by NRFC
Luxembourg under the Participation Agreement and the Participation Certificate.

 

“Participation
Agreement”:  Collectively, the
Instrument of Assumption, dated on or about March 29, 2007, executed by
NRFC Luxembourg and the letter agreement among Goldman Sachs Credit Partners,
L.P. and NRFC Luxembourg, dated on or about March 29, 2007, as the
foregoing are amended, modified, restated, replaced, waived, substituted,
supplemented or extended from time to time.

 

A-9

 

“Participation
Certificate”:  The transfer
certificate, dated on or about March 29, 2007, executed by NRFC
Luxembourg, Goldman Sachs Credit Partners, L.P. and Capmark Services Ireland
Limited, issued in connection with the Participation Agreement and evidencing
the Participation, including any original power of attorney related to the
execution thereof, together with any and all intervening endorsements thereon,
endorsed, in blank, on its face or by allonge attached thereto (without
recourse, representation or warranty, express or implied), as amended,
modified, restated, replaced, waived, substituted, supplemented or extended
from time to time.

 

“Participation
Pledge”:  The Luxembourg Pledge over
Participation Interest Agreement, dated as of March 29, 2007, executed by
NRFC Luxembourg in favor of the Seller.

 

“Payment
Date”:  The 1st day of each calendar
quarter, or, if such day is not a Business Day, the next Business Day.

 

“PBGC”:  The Pension Benefit Guaranty Corporation or
any entity succeeding to any or all of its functions under ERISA.

 

“Pension
Plan”:  Defined in Subsection 5(r) of
this Agreement.

 

“Periodic
Advance Repurchase Payment”:  Defined
in Subsection 4(e) of this Agreement.

 

“Permitted
Liens”:  Any of the following as to
which no enforcement, collection, execution, levy or foreclosure proceeding
shall have been commenced or threatened: 
(a) Liens for federal, state, municipal or other local or other
Governmental Authority Taxes if such Taxes shall not at the time be due and
payable, (b) Liens imposed by law, such as materialmen’s, mechanics’,
carriers’, workmen’s and repairmen’s Liens and other similar Liens, arising in
the ordinary course of business securing obligations that are not overdue for a
period of more than thirty (30) days, and (c) Liens granted pursuant
to or by the Repurchase Documents.

 

“Person”:  An individual, partnership, corporation
(including a business trust), limited liability  company,
joint stock company, trust, unincorporated association, sole proprietorship,
joint  venture, government (or any agency or
political subdivision thereof) or any other type or form of entity.

 

“Plan”:  An employee benefit or other plan established
or maintained by the Seller, the Guarantor, the Pledgor or any ERISA Affiliate
and covered by Title IV of ERISA, other than a Multiemployer Plan.

 

“Plan
Party”:  Defined in Subsection 24(a) of
this Agreement.

 

“Pledge
and Security Agreement”: 
Collectively, (a) the Pledge and Security Agreement, dated as of
even date herewith, executed by the Pledgor in favor of the Purchaser with
respect to all of the Pledgor’s Capital Stock in the Seller and the related
collateral pledged thereunder and (b) the Pledge Over Shares Agreement,
dated as of March 29, 2007, executed by the Pledgor in favor of the
Purchaser with respect to all of the Pledgor’s Capital Stock in NRFC Luxembourg
and the related collateral pledged thereunder.

 

“Pledge
Notices”:  Defined in Subsection
3(m).

 

“Pledged
Collateral”:  The Capital Stock and
related collateral pledged to the Purchaser under the Pledge and Security
Agreements.

 

A-10

 

“Pledgor”:  NRFC Sub—REIT Corp., a Maryland corporation,
together with its successors and permitted assigns.

 

“Price
Differential”:  For each Interest
Period and the Transaction outstanding, the sum of the products (for each day
during such Interest Period) of:

 

	
  PR x PP x

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
  D

  	
   

  

 

	
  where:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PR

  	
  =

  	
  the Pricing Rate
  applicable on such day;

  
	
   

  	
   

  	
  PP

  	
  =

  	
  the Purchase Price for
  such Transaction on such day; and

  
	
   

  	
   

  	
  D

  	
  =

  	
  360;

  

 

provided, however,
that (i) no provision of this Agreement shall require the payment or
permit the collection of any Price Differential in excess of the maximum
permitted by Applicable Law and (ii) the Price Differential shall not be
considered paid by any distribution if at any time such distribution is
rescinded or must otherwise be returned for any reason.

 

“Pricing
Rate”:  With respect to the Note, on
any date of determination, a rate per annum equal to the sum of (a) the
Rate plus (b) 150 basis points.

 

“Prime
Rate”:  The rate announced by the
Purchaser from time to time as its prime rate in the United States, such rate
to change as and when such designated rate changes.  The  Prime Rate is
not intended to be the lowest rate of interest charged by the Purchaser in
connection with extensions of credit to debtors.

 

“Property”:  Any right or interest in or to property of
any kind whatsoever, whether real, personal or mixed, and whether tangible or
intangible.

 

“Purchase
Price”:  The product of (x) the
Advance Rate times (y) the lesser of (i) the Book Value of the Note
and (ii) the Market Value of such Note.

 

“Purchased
Items”:  Collectively, all of the
Seller’s right, title and interest in and to each of the following items or
types of property, whether now owned or hereafter acquired, now existing or
hereafter created and wherever located: 
the Note, all Income, all Asset Documents and Asset Files, including,
without limitation, all participation certificates, promissory notes and all
security and loan agreements relating to the Note and the other Purchased
Items, all Property and collateral pledged, securing or otherwise relating to
such Note and the other Purchased Items or pledged to the Seller in connection
with the Note, including, without limitation, the Participation, the
Participation Certificate, the Participation Agreement and other collateral
pledged to the Seller under the Participation Pledge, together with all files,
documents, instruments, surveys, certificates, correspondence, appraisals,
computer programs, computer storage media, accounting records and other books
and records relating to the Note and the other Purchased Items, all mortgage
guaranties and insurance (issued by governmental agencies or otherwise) and any
mortgage insurance certificate or other document evidencing such mortgage
guaranties or insurance relating to the Note or the other Purchased Items, all servicing
fees to which the Seller is entitled, all servicing and other rights relating
to the Note and the other Purchased Items, all Additional Asset Documents, all
servicing agreements, servicing records, servicing files and servicer accounts
established pursuant to any servicing agreement, pooling and servicing
agreement, trust agreement, indenture or otherwise and all amounts on deposit
therein from time to time related to the Note and the other Purchased Items,
all rights of the Seller under any servicing agreement, pooling and servicing
agreements, trust, indenture or security agreement relating to the Note and the
other Purchased Items, all 

 

A-11

 

other
agreements or contracts relating to, constituting, or otherwise governing, any
or all of the foregoing to the extent they relate to the Note or the Purchased
Items, including the right to receive principal and interest payments and any
related fees, breakage fees, late fees and penalties with respect to the Note
and the other Purchased Items and the right to enforce such payments, all
insurance policies, certificates of insurance and the rights to any insurance
proceeds, the Collection Account and all monies, cash, deposits, securities or
investment property from time to time on deposit in the Collection Account, all
of the Seller’s rights to any collection account, escrow account, collateral
account or lock—box account related to the Note and the other Purchased Items,
including all moneys, cash, deposits, securities or investment property from
time to time on deposit therein, rights of the Seller under any letter of
credit, guarantee or other credit support or enhancement related to the Note or
the Purchased Items, any Derivatives Contracts relating to the Note, including
all payments due to the Seller, the Guarantor, the Pledgor or any Affiliates of
the foregoing thereunder, all “general intangibles”, “accounts”, “chattel paper”,
“deposit accounts”, “securities accounts”, “instruments”, “securities”, “financial
assets”, “uncertificated securities”, “securities entitlements” and “investment
property” as defined in the Uniform Commercial Code as in effect from time to
time relating to or constituting any and all of the foregoing, and any and all
replacements, substitutions, conversions, distributions on or proceeds of any
and all of the foregoing.

 

“Purchaser”:  Defined in the Preamble of this
Agreement.

 

“Purchaser’s
Account”:  The account of the
Purchaser identified on Exhibit D attached hereto.  The Seller shall not have any rights or
interests in or rights of withdrawal from the Purchaser’s Account.

 

“Qualified
Transferee”:  Defined in the
Intercreditor Agreement.

 

“Rate”:  For any Interest Period and for the
Transaction outstanding and for each day during such Interest Period, the rate
per annum equal to the Eurocurrency Rate; provided, however, (i) the
Rate for any Interest Period shall be the Base Rate if a Eurocurrency
Disruption Event occurs and (ii) the Rate for any Interest Period after an
Event of Default occurs shall be the Default Rate.

 

“Rating Agency”:  Each of S&P, Moody’s, Fitch and any other
recognized statistical rating agency that has been requested to issue a rating
in connection with the matter at issue, including successors of the foregoing.

 

“Regulations
T, U and X”:  Regulations T, U and X
of the Board of Governors of the Federal Reserve System (or any successor), as
the same may be amended from time to time.

 

“Release
Letter”:  Defined in Subsection 3(j) of
this Agreement.

 

“Reportable
Event”:  Any of the events set forth
in Section 4043(c) of ERISA or a successor provision thereof, other
than those events as to which the notice requirement has been waived by
regulation.

 

“Repurchase
Date”:  The earliest of (i) the
Business Day specified by the Seller pursuant to Subsection 4(a), (ii) the
Business Day determined pursuant to Subsection 4(b) and (iii) the
date determined pursuant to Subsection 4(c).

 

“Repurchase
Documents”:  This Agreement, each
Pledge and Security Agreement, the Guaranty Agreement, the Account Control
Agreement, each Assignment, any UCC financing statements (and amendments
thereto) filed pursuant to the terms of this Agreement or any other Repurchase
Document and any additional document, certificate or agreement, the execution
of which is necessary or incidental to carrying out the terms of the foregoing
documents.

 

A-12

 

“Repurchase
Obligations”:  The obligations,
liabilities and Indebtedness owed under and/or secured by the Wachovia
Repurchase Facility and the VFCC Repurchase Facility.

 

“Repurchase
Price”:  The price at which the Note
is to be transferred from Purchaser or its designee to the Seller on a
Repurchase Date, which price shall be in an amount equal to the sum of the
outstanding Purchase Price for such Transaction plus all accrued and unpaid
Price Differential with respect thereto.

 

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

 

“Same Day Funds”
Same day or other funds as may be determined by the Purchaser to be customary
in the place of disbursement or payment for the settlement of international
banking transactions in Euros.

 

“SEC”:  Defined in Subsection 22(a) of
this Agreement.

 

“Seller”:  Defined in the Preamble of this
Agreement.

 

“Seller’s
Account”:  The account of the Seller
identified in writing to the Purchaser.

 

“Senior
Finance Documents”:  As defined the
Mezzanine Finance Documents.

 

“Servicing
Standard”:  With respect to the Note
and the other Purchased Items, those servicing practices of prudent mortgage or
mezzanine lending institutions that service assets of the same type, size and
structure as the Note and the other Purchased Items in the jurisdiction where
the related Mortgaged Property is located, but in any event, (i) in
accordance with the terms of the Repurchase Documents, (ii) without
prejudice to the interests of the Purchaser, (iii) with a view to the
maximization of the recovery on the Note and other Purchased Items on a net
present value basis, and (iv) without regard to (A) any relationship
that the Seller, the Guarantor, the Pledgor and any Affiliate may have with the
related Obligors, mortgagor, the Seller or any other party to the Repurchase
Documents, the Asset Documents or any Affiliate thereof; (B) the right of
the Seller, the Guarantor, the Pledgor or any Affiliate to receive compensation
or other fees for its services rendered pursuant to this Agreement or any other
document; (C) the ownership, servicing or management by the Seller, the
Guarantor, the Pledgor or any Affiliate for others of any other mortgage or
mezzanine loans or mortgaged property; (D) any obligation of the Seller,
the Guarantor, the Pledgor or any Affiliate to repurchase or substitute the
Note; (E) any obligation of the Seller, the Guarantor, the Pledgor or any
Affiliate to cure a breach of a representation and warranty with respect to the
Note or any other Purchased Item; and (F) any debt the Seller, the
Guarantor, the Pledgor or any Affiliate has extended to any Obligor, mortgagor
or any Affiliate of such Obligor or mortgagor.

 

“Settlement
Agent”:  Defined in Subsection 2(c)(ii) of
this Agreement.

 

“SIPA”:  Defined in Subsection 22(a) of
this Agreement.

 

“Solvent”:  As to any Person at any time, having a state
of affairs such that all of the following conditions are met: (a) the fair
value of the Property of such Person is greater than the amount of such Person’s
liabilities (including disputed, contingent and unliquidated liabilities) as
such value is established and liabilities evaluated for purposes of Section 101(32)
of the Bankruptcy Code; (b) the present fair salable value of the Property
of such Person in an orderly liquidation of such Person is not less than the
amount that will be required to pay the probable liability of such Person on
its debts as they become absolute and matured; (c) such Person is able to
realize upon its Property and pay its debts and other liabilities (including
disputed, contingent and unliquidated liabilities) as they mature in the normal
course of business; (d) such Person does not intend to, and does not
believe that it will, incur debts or liabilities 

 

A-13

 

beyond
such Person’s ability to pay as such debts and liabilities mature; and (e) such
Person is not engaged in a business or a transaction, and is not about to
engage in a business or a transaction, for which such Person’s Property would
constitute unreasonably small capital.

 

“Subsidiary”:  With respect to any Person, any corporation,
partnership, limited liability company or other entity of which at least a
majority of the securities or other ownership interests having by the terms
thereof ordinary voting power to elect a majority of the board of directors or
other Persons performing similar functions of such corporation, partnership,
limited liability company or other entity (irrespective of whether or not at
the time securities or other ownership interests of any other class or classes
of such corporation, partnership or other entity shall have or might have
voting power by reason of the happening of any contingency) is at the time
directly or indirectly owned or controlled by such Person or one or more
Subsidiaries of such Person.

 

“VFCC”:  Defined in Subsection 4(b) of
this Agreement.

 

“VFCC
Repurchase Facility”:  Defined in Subsection 4(b) of
this Agreement.

 

“Target Day”:  Any day on which the Trans-European Automated
Real-time Gross Settlement Express Transfer (TARGET) payment system (or, if
such payment system ceases to be operative, such other payment system (if
any) determined by the Purchaser to be a suitable replacement) is open for
the settlement of payments in Euro.

 

“Taxes”:  Any present or future taxes, levies, imposts,
duties, charges, assessments or fees of any nature (including interest,
penalties, and additions thereto) that are imposed by any Governmental
Authority.

 

“Transaction”:  Defined in the Recitals of this
Agreement.

 

“Uniform
Commercial Code” or “UCC”: 
The Uniform Commercial Code as in effect on the date hereof in the State
of New York; provided that if by reason of mandatory provisions of
Applicable Law, the perfection or the effect of perfection or non—perfection of
the security interest in the Note or other Purchased Item is governed by the
Uniform Commercial Code as in effect in a jurisdiction other than New York, “Uniform
Commercial Code” shall mean the Uniform Commercial Code as in effect in such
other jurisdiction for purposes of the provisions hereof relating to such
perfection or effect of perfection or non—perfection.

 

“United
States”:  The United States of
America.

 

“Wachovia”:  Wachovia Bank, National Association.

 

“Wachovia
Repurchase Facility”:  Defined in Subsection 
4(b) of this Agreement.

 

“Wet—Funded
Note”:  Defined in Subsection 2(c) of
this Agreement.

 

Section 2.              Other Terms.

 

All
accounting terms used but not specifically defined herein shall be construed in
accordance with GAAP.  All terms used in Article 9
of the UCC in the State of New York, and used but not specifically defined
herein, are used herein as defined in such Article 9.

 

A-14

 

Section 3.              Computation of Time Periods.

 

Unless
otherwise stated in this Agreement, in the computation of a period of time from
a specified date to a later specified date, the word “from” means “from and
including” and the words “to” and “until” each mean “to but excluding.”

 

Section 4.              Interpretation.

 

In each Repurchase Document, unless a contrary
intention appears:

 

(i)            the singular number includes the plural number and vice versa;

 

(ii)           reference to any Person includes such Person’s successors
and assigns but, if applicable, only if such successors and assigns are
permitted by the Repurchase Documents;

 

(iii)          reference to any gender includes each other gender;

 

(iv)          reference to day or days without further qualification
means calendar days;

 

(v)           reference to any time means Charlotte, North Carolina
time;

 

(vi)          reference to any agreement (including any Repurchase
Document), document or instrument means such agreement, document or instrument
as amended, supplemented or modified and in effect from time to time in
accordance with the terms thereof and, if applicable, the terms of the other
Repurchase Documents, and reference to any promissory note includes any
promissory note that is an extension or renewal thereof or a substitute or
replacement therefor;

 

(vii)         reference to any Applicable Law means such Applicable Law as
amended, modified, codified, replaced or reenacted, in whole or in part, and in
effect from time to time, including rules and regulations promulgated
thereunder and reference to any Section or other provision of any
Applicable Law means that provision of such Applicable Law from time to time in
effect and constituting the substantive amendment, modification, codification,
replacement or reenactment of such Section or other provision;

 

(viii)        unless otherwise expressly provided in this Agreement,
reference to any notice, request, approval, consent or determination provided
for, permitted or required under the terms of this Agreement with respect to
the Seller, the Guarantor, the Pledgor or the Purchaser means, in order for
such notice, request, approval, consent or determination to be effective
hereunder, such notice, request, approval or consent must be in writing; and

 

(ix)           reference herein or in any Repurchase Document to the
Purchaser’s discretion shall mean, unless otherwise stated herein or therein,
the Purchaser’s sole and absolute discretion, and the exercise of such
discretion shall be final and conclusive. 
In addition, whenever the Purchaser exercises any right given to it to
approve or disapprove, or any arrangement or term is to be satisfactory to the
Purchaser, the decision of the Purchaser to approve or disapprove or to decide
that arrangements or terms are satisfactory or not satisfactory shall be in the
sole and absolute discretion of the Purchaser, and such decision shall be final
and conclusive, except as may be otherwise specifically provided herein.

 

A-15

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