Document:

Exhibit 10.1

 

$100,000,000 REVOLVING
CREDIT FACILITY

 

CREDIT AGREEMENT

 

by and among

 

THE DAYTON POWER AND LIGHT
COMPANY

 

and

 

THE LENDERS PARTY HERETO

 

and

 

PNC BANK, NATIONAL
ASSOCIATION, as Administrative Agent

 

Dated as of April 21,
2009

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  CERTAIN DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
  1.1

  	
  Certain Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
  1.2

  	
  Construction

  	
   

  	
  20

  
	
   

  	
   

  	
  1.3

  	
  Accounting Principles

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  REVOLVING CREDIT FACILITIES

  	
   

  	
  21

  
	
   

  	
   

  	
  2.1

  	
  Revolving Credit Commitments

  	
   

  	
  21

  
	
   

  	
   

  	
  2.2

  	
  Nature of Lenders’ Obligations with Respect to
  Revolving Credit Loans

  	
   

  	
  21

  
	
   

  	
   

  	
  2.3

  	
  Facility Fees

  	
   

  	
  21

  
	
   

  	
   

  	
  2.4

  	
  Revolving Credit Loan Requests

  	
   

  	
  22

  
	
   

  	
   

  	
  2.5

  	
  Making Revolving Credit Loans; Presumptions by the
  Administrative Agent; Repayment of Revolving Credit Loans

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
  2.5.1

  	
  Making Revolving Credit Loans

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
  2.5.2

  	
  Presumptions by the Administrative Agent

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
  2.5.3

  	
  Repayment of Revolving Credit Loans

  	
   

  	
  23

  
	
   

  	
   

  	
  2.6

  	
  Notes

  	
   

  	
  23

  
	
   

  	
   

  	
  2.7

  	
  Use of Proceeds

  	
   

  	
  23

  
	
   

  	
   

  	
  2.8

  	
  Voluntary Termination

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  INTEREST RATES

  	
   

  	
  23

  
	
   

  	
   

  	
  3.1

  	
  Interest Rate Options

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
  3.1.1

  	
  Revolving Credit Interest Rate Options

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
  3.1.2

  	
  Rate Quotations

  	
   

  	
  24

  
	
   

  	
   

  	
  3.2

  	
  Interest Periods

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
  3.2.1

  	
  Amount of Borrowing Tranche

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
  3.2.2

  	
  Renewals

  	
   

  	
  24

  
	
   

  	
   

  	
  3.3

  	
  Interest After Default

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
  3.3.1

  	
  Interest Rate

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
  3.3.2

  	
  Other Obligations

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
  3.3.3

  	
  Acknowledgment

  	
   

  	
  25

  
	
   

  	
   

  	
  3.4

  	
  LIBOR Rate Unascertainable; Illegality; Increased
  Costs; Deposits Not Available

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
  3.4.1

  	
  Unascertainable

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
  3.4.2

  	
  Illegality; Increased Costs; Deposits Not Available

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
  3.4.3

  	
  Administrative Agent’s and Lender’s Rights

  	
   

  	
  25

  
	
   

  	
   

  	
  3.5

  	
  Selection of Interest Rate Options

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  PAYMENTS

  	
   

  	
  26

  
	
   

  	
   

  	
  4.1

  	
  Payments

  	
   

  	
  26

  
	
   

  	
   

  	
  4.2

  	
  Pro Rata Treatment of Lenders

  	
   

  	
  27

  
	
   

  	
   

  	
  4.3

  	
  Sharing of Payments by Lenders

  	
   

  	
  27

  
	
   

  	
   

  	
  4.4

  	
  Presumptions by Administrative Agent

  	
   

  	
  28

  
	
   

  	
   

  	
  4.5

  	
  Interest Payment Dates

  	
   

  	
  28

  
	
   

  	
   

  	
  4.6

  	
  Voluntary Prepayments

  	
   

  	
  28

  

 

i

 

	
   

  	
   

  	
   

  	
  4.6.1

  	
  Right to Prepay

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
  4.6.2

  	
  Replacement of a Lender

  	
   

  	
  29

  
	
   

  	
   

  	
  4.7

  	
  Increased Costs

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
  4.7.1

  	
  Increased Costs Generally

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
  4.7.2

  	
  Capital Requirements

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
  4.7.3

  	
  Certificates for Reimbursement; Repayment of
  Outstanding Loans; Borrowing of New Loans

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
  4.7.4

  	
  Delay in Requests

  	
   

  	
  31

  
	
   

  	
   

  	
  4.8

  	
  Taxes

  	
   

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
  4.8.1

  	
  Payments Free of Taxes

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
  4.8.2

  	
  Payment of Other Taxes by the Borrower

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
  4.8.3

  	
  Indemnification by the Borrower

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
  4.8.4

  	
  Evidence of Payments

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
  4.8.5

  	
  Status of Lenders

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
  4.8.6

  	
  Refunds

  	
   

  	
  33

  
	
   

  	
   

  	
  4.9

  	
  Indemnity

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
  34

  
	
   

  	
   

  	
  5.1

  	
  Representations and Warranties

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
  5.1.1

  	
  Corporate Status

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
  5.1.2

  	
  Corporate Power and Authority

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
  5.1.3

  	
  No Violation

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
  5.1.4

  	
  Governmental Approvals

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
  5.1.5

  	
  Litigation

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
  5.1.6

  	
  Use of Proceeds; Margin Regulations

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
  5.1.7

  	
  Financial Statements

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
  5.1.8

  	
  Material Adverse Effect

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
  5.1.9

  	
  Taxes

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
  5.1.10

  	
  Title to Property

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
  5.1.11

  	
  Insurance

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
  5.1.12

  	
  ERISA Compliance

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
  5.1.13

  	
  Environmental Matters

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
  5.1.14

  	
  Solvency

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
  5.1.15

  	
  Lawful Operation; Compliance with Laws

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
  5.1.16

  	
  Intellectual Property

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
  5.1.17

  	
  Investment Company Act; Federal Power Act

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
  5.1.18

  	
  Employment Matters

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
  5.1.19

  	
  Full Disclosure

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  CONDITIONS OF LENDING

  	
   

  	
  39

  
	
   

  	
   

  	
  6.1

  	
  Closing

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
  6.1.1

  	
  Deliveries

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
  6.1.2

  	
  Payment of Fees

  	
   

  	
  40

  
	
   

  	
   

  	
  6.2

  	
  Each Loan

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  COVENANTS

  	
   

  	
  40

  
	
   

  	
   

  	
  7.1

  	
  Affirmative Covenants

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
  7.1.1

  	
  Books, Records and Inspections

  	
   

  	
  40

  

 

ii

 

	
   

  	
   

  	
   

  	
  7.1.2

  	
  Insurance

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
  7.1.3

  	
  Payment of Taxes and Claims

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
  7.1.4

  	
  Preservation of Existence, etc.

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
  7.1.5

  	
  Good Repair

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
  7.1.6

  	
  Compliance with Statutes, Regulations, Orders,
  Restrictions

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
  7.1.7

  	
  Use of Proceeds

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
  7.1.8

  	
  Senior Debt

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
  7.1.9

  	
  Anti-Terrorism Laws

  	
   

  	
  42

  
	
   

  	
   

  	
  7.2

  	
  Negative Covenants

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
  7.2.1

  	
  Changes in Business

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
  7.2.2

  	
  Liens

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
  7.2.3

  	
  Merger, Consolidation, Asset Sales

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
  7.2.4

  	
  Fiscal Year

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
  7.2.5

  	
  Investments

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
  7.2.6

  	
  Transactions with Affiliates

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
  7.2.7

  	
  Material Agreements

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
  7.2.8

  	
  Use of Proceeds/Margin Regulations

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
  7.2.9

  	
  No Dividend Restrictions

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
  7.2.10

  	
  Swap Agreements

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
  7.2.11

  	
  Financial Covenant

  	
   

  	
  46

  
	
   

  	
   

  	
  7.3

  	
  Reporting Requirements

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
  7.3.1

  	
  Annual Financial Statements

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
  7.3.2

  	
  Quarterly Financial Statements

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
  7.3.3

  	
  Certificate of the Borrower

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
  7.3.4

  	
  Notices

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  DEFAULT

  	
   

  	
  48

  
	
   

  	
   

  	
  8.1

  	
  Events of Default

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
  8.1.1

  	
  Payments Under Loan Documents

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
  8.1.2

  	
  Breach of Warranty

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
  8.1.3

  	
  Breach of Negative Covenants or Visitation Rights

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
  8.1.4

  	
  Breach of Other Covenants

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
  8.1.5

  	
  Defaults in Other Agreements or Indebtedness

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
  8.1.6

  	
  Final Judgments or Orders

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
  8.1.7

  	
  Loan Document Unenforceable

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
  8.1.8

  	
  Events Relating to Plans and Benefit Arrangements

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
  8.1.9

  	
  Change of Control

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
  8.1.10

  	
  Relief Proceedings

  	
   

  	
  49

  
	
   

  	
   

  	
  8.2

  	
  Consequences of Event of Default

  	
   

  	
  50

  
	
   

  	
   

  	
   

  	
  8.2.1

  	
  Events of Default Other Than Bankruptcy, Insolvency
  or Reorganization Proceedings

  	
   

  	
  50

  
	
   

  	
   

  	
   

  	
  8.2.2

  	
  Bankruptcy, Insolvency or Reorganization Proceedings

  	
   

  	
  50

  
	
   

  	
   

  	
   

  	
  8.2.3

  	
  Set-off

  	
   

  	
  50

  
	
   

  	
   

  	
   

  	
  8.2.4

  	
  Application of Proceeds

  	
   

  	
  50

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  THE ADMINISTRATIVE AGENT

  	
   

  	
  51

  
	
   

  	
   

  	
  9.1

  	
  Appointment and Authority

  	
   

  	
  51

  
	
   

  	
   

  	
  9.2

  	
  Rights as a Lender

  	
   

  	
  51

  
	
   

  	
   

  	
  9.3

  	
  Exculpatory Provisions

  	
   

  	
  51

  

 

iii

 

	
   

  	
   

  	
  9.4

  	
  Reliance by Administrative Agent

  	
   

  	
  52

  
	
   

  	
   

  	
  9.5

  	
  Delegation of Duties

  	
   

  	
  53

  
	
   

  	
   

  	
  9.6

  	
  Resignation of Administrative Agent

  	
   

  	
  53

  
	
   

  	
   

  	
  9.7

  	
  Non-Reliance on Administrative Agent and Other
  Lenders

  	
   

  	
  53

  
	
   

  	
   

  	
  9.8

  	
  No Other Duties, etc.

  	
   

  	
  54

  
	
   

  	
   

  	
  9.9

  	
  Administrative Agent’s Fee

  	
   

  	
  54

  
	
   

  	
   

  	
  9.10

  	
  No Reliance on Administrative Agent’s Customer
  Identification Program

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  54

  
	
   

  	
   

  	
  10.1

  	
  Modifications, Amendments or Waivers

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
  10.1.1

  	
  Increase of Commitment

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
  10.1.2

  	
  Extension of Payment; Reduction of Principal
  Interest or Fees; Modification of Terms of Payment

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
  10.1.3

  	
  Miscellaneous

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10.2

  	
  No Implied Waivers; Cumulative Remedies

  	
   

  	
  55

  
	
   

  	
   

  	
  10.3

  	
  Expenses; Indemnity; Damage Waiver

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
  10.3.1

  	
  Costs and Expenses

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
  10.3.2

  	
  Indemnification by the Borrower

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
  10.3.3

  	
  Reimbursement by Lenders

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
  10.3.4

  	
  Waiver of Consequential Damages, Etc.

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
  10.3.5

  	
  Payments

  	
   

  	
  57

  
	
   

  	
   

  	
  10.4

  	
  Holidays

  	
   

  	
  57

  
	
   

  	
   

  	
  10.5

  	
  Notices; Effectiveness; Electronic Communication

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
  10.5.1

  	
  Notices Generally

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
  10.5.2

  	
  Electronic Communications

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
  10.5.3

  	
  Change of Address, Etc.

  	
   

  	
  58

  
	
   

  	
   

  	
  10.6

  	
  Severability

  	
   

  	
  58

  
	
   

  	
   

  	
  10.7

  	
  Duration; Survival

  	
   

  	
  58

  
	
   

  	
   

  	
  10.8

  	
  Successors and Assigns

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
  10.8.1

  	
  Successors and Assigns Generally

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
  10.8.2

  	
  Assignments by Lenders

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
  10.8.3

  	
  Register

  	
   

  	
  60

  
	
   

  	
   

  	
   

  	
  10.8.4

  	
  Participations

  	
   

  	
  60

  
	
   

  	
   

  	
   

  	
  10.8.5

  	
  Limitations upon Participant Rights Successors and
  Assigns Generally

  	
   

  	
  61

  
	
   

  	
   

  	
   

  	
  10.8.6

  	
  Certain Pledges; Successors and Assigns Generally

  	
   

  	
  61

  
	
   

  	
   

  	
  10.9

  	
  Confidentiality

  	
   

  	
  61

  
	
   

  	
   

  	
   

  	
  10.9.1

  	
  General

  	
   

  	
  61

  
	
   

  	
   

  	
   

  	
  10.9.2

  	
  Sharing Information With Affiliates of the Lenders

  	
   

  	
  62

  
	
   

  	
   

  	
  10.10

  	
  Counterparts; Integration; Effectiveness

  	
   

  	
  62

  
	
   

  	
   

  	
   

  	
  10.10.1

  	
  Counterparts; Integration; Effectiveness

  	
   

  	
  62

  
	
   

  	
   

  	
  10.11

  	
  CHOICE OF LAW; SUBMISSION TO JURISDICTION; WAIVER OF
  VENUE; SERVICE OF PROCESS; WAIVER OF JURY TRIAL

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
  10.11.1

  	
  Governing Law

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
  10.11.2

  	
  SUBMISSION TO JURISDICTION

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
  10.11.3

  	
  WAIVER OF VENUE

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
  10.11.4

  	
  SERVICE OF PROCESS

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
  10.11.5

  	
  WAIVER OF JURY TRIAL

  	
   

  	
  64

  
	
   

  	
   

  	
  10.12

  	
  USA Patriot Act Notice

  	
   

  	
  64

  

 

iv

 

LIST OF SCHEDULES AND EXHIBITS

 

	
  SCHEDULES

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 1.1(A)

  	
   

  	
  -

  	
   

  	
  PRICING GRID

  
	
  SCHEDULE 1.1(B)

  	
   

  	
  -

  	
   

  	
  COMMITMENTS OF LENDERS AND
  ADDRESSES FOR NOTICES

  
	
  SCHEDULE 5.1.1

  	
   

  	
  -

  	
   

  	
  CORPORATE STATUS

  
	
  SCHEDULE 5.1.5

  	
   

  	
  -

  	
   

  	
  LITIGATION

  
	
  SCHEDULE 6.1.1

  	
   

  	
  -

  	
   

  	
  OPINION OF COUNSEL

  
	
  SCHEDULE 7.2.2

  	
   

  	
  -

  	
   

  	
  PERMITTED LIENS

  
	
  SCHEDULE 7.2.5

  	
   

  	
  -

  	
   

  	
  PERMITTED INVESTMENTS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT 1.1(A)

  	
   

  	
  -

  	
   

  	
  ASSIGNMENT AND ASSUMPTION
  AGREEMENT

  
	
  EXHIBIT 1.1(N)

  	
   

  	
  -

  	
   

  	
  REVOLVING CREDIT NOTE

  
	
  EXHIBIT 2.4

  	
   

  	
  -

  	
   

  	
  LOAN REQUEST

  
	
  EXHIBIT 6.1.1

  	
   

  	
  -

  	
   

  	
  SOLVENCY CERTIFICATE

  
	
  EXHIBIT 7.3.3

  	
   

  	
  -

  	
   

  	
  QUARTERLY COMPLIANCE
  CERTIFICATE

  

 

v

 

CREDIT AGREEMENT

 

THIS CREDIT
AGREEMENT (as may be hereafter amended from time to time, the “Agreement”) is dated as of April 21, 2009 and is made
by and among The Dayton Power and Light Company, an Ohio corporation (the “Borrower”), the LENDERS (as hereinafter defined), and PNC
BANK, NATIONAL ASSOCIATION, in its capacity as administrative agent for the
Lenders under this Agreement (hereinafter referred to in such capacity as the “Administrative Agent”).

 

The Borrower has requested the Lenders to provide a revolving credit
facility to the Borrower in an aggregate principal amount not to exceed
$100,000,000.  In consideration of their
mutual covenants and agreements hereinafter set forth and intending to be
legally bound hereby, the parties hereto covenant and agree as follows:

 

1.             CERTAIN DEFINITIONS

 

1.1           Certain Definitions.  In addition to words and terms defined
elsewhere in this Agreement, the following words and terms shall have the
following meanings, respectively, unless the context hereof clearly requires
otherwise:

 

Acquisition shall mean any acquisition (a) on a going
concern basis (whether by purchase, lease or otherwise) of assets constituting
a business or a division or line of business of a Person that is not a
Subsidiary of the Borrower, and (b) of a majority of the outstanding
equity or other similar interests in any such Person (whether by merger, stock
purchase or otherwise).

 

Administrative Agent shall mean PNC
Bank, National Association, and its successors and assigns.

 

Administrative Agent’s Fee shall have the
meaning specified in Section 9.9 [Administrative
Agent’s Fee].

 

Administrative Agent’s
Letter shall have the meaning specified in Section 9.9 [Administrative Agent’s Fee].

 

Affiliate shall mean as
to any Person any other Person (i) which directly or indirectly controls,
is controlled by, or is under common control with such Person, (ii) which
beneficially owns or holds 10% or more of any class of the voting or other
equity interests of such Person, or (iii) 10% or more of any class of voting
interests or other equity interests of which is beneficially owned or held,
directly or indirectly, by such Person.

 

Anti-Terrorism Laws shall mean any
Laws relating to terrorism or money laundering, including Executive Order No. 13224,
the USA Patriot Act, the Laws comprising or implementing the Bank Secrecy Act,
and the Laws administered by the United States Treasury Department’s Office of
Foreign Asset Control (as any of the foregoing Laws may from time to time be
amended, renewed, extended, or replaced).

 

 

Applicable Facility Fee Rate shall mean the
percentage rate per annum based on the Ratings then in effect according to the
pricing grid on Schedule 1.1(A) below the heading “Facility Fee.”

 

Applicable Margin shall mean, as
applicable:

 

(A)          the
percentage spread to be added to the Base Rate applicable to Loans under the
Base Rate Option based on the Ratings then in effect according to the pricing
grid on Schedule 1.1(A) below the heading “Revolving Credit Base
Rate Spread”, or

 

(B)           the
percentage spread to be added to the LIBOR Rate applicable to Loans under the
LIBOR Rate Option based on the Ratings then in effect according to the pricing
grid on Schedule 1.1(A) below the heading “Revolving Credit LIBOR
Rate Spread”.

 

Approved Fund shall mean any
fund that is engaged in making, purchasing, holding or investing in bank loans
and similar extensions of credit in the ordinary course of business and that is
administered or managed by (a) a Lender, (b) an Affiliate of a Lender
or (c) an entity or an Affiliate of an entity that administers or manages
a Lender.

 

Asset Sale shall mean the
sale, transfer or other disposition (including by means of Sale and Lease-Back
Transactions, and by means of mergers, consolidations, and liquidations of a
corporation, partnership or limited liability company of the interests therein
of the Borrower or any of its Subsidiaries) by the Borrower or any of its
Subsidiaries to any Person of any of their respective assets, provided that the term Asset Sale specifically excludes any
sales, transfers or other dispositions of inventory, or obsolete or excess
furniture, fixtures, equipment or other Property, real or personal, tangible or
intangible, in each case in the ordinary course of business.

 

Assignment and Assumption  shall mean an assignment
and assumption entered into by a Lender and an assignee permitted under Section 10.8
[Successors and Assigns], in substantially the form of Exhibit 1.1(A).

 

Authorized Officer shall mean the
Chief Executive Officer, President, Chief Financial Officer, Treasurer or
Assistant Treasurer of the Borrower or any officer of the Borrower who succeeds
to all or substantially all of the responsibilities of such officers or such
other individuals, designated by written notice to the Administrative Agent
from the Borrower, authorized to execute notices, reports and other documents
on behalf of the Borrower required hereunder. 
The Borrower may amend such list of individuals from time to time by
giving written notice of such amendment to the Administrative Agent.

 

Base Rate shall mean, for any day, a
fluctuating per annum rate of interest equal to the highest of (a) the
Federal Funds Open Rate plus 0.5%, and (b) the Prime Rate, and (c) the
Daily LIBOR Rate, plus 100 basis points (1.0%).  Any change in the Base Rate (or any component
thereof) shall take effect at the opening of business on the day such change
occurs.

 

Base Rate Option shall mean the
option of the Borrower to have Loans bear interest at the rate and under the
terms set forth in Section 3.1.1(i) [Revolving Credit Base Rate
Option].

 

2

 

Borrower shall have the
meaning set forth in preamble hereto.

 

Borrowing Date shall mean,
with respect to any Loan, the date for the making thereof or the renewal or
conversion thereof at or to the same or a different Interest Rate Option, which
shall be a Business Day.

 

Borrowing Tranche shall mean
specified portions of Loans outstanding as follows:  (i) any Loans to which a LIBOR Rate
Option applies which become subject to the same Interest Rate Option under the
same Loan Request by the Borrower and which have the same Interest Period shall
constitute one Borrowing Tranche, and (ii) all Loans to which a Base Rate
Option applies shall constitute one Borrowing Tranche.

 

Business Day shall mean any
day other than a Saturday or Sunday or a legal holiday on which commercial
banks are authorized or required to be closed for business in Pittsburgh,
Pennsylvania and if the applicable Business Day relates to any Loan to which
the LIBOR Rate Option applies, such day must also be a day on which dealings
are carried on in the London interbank market.

 

Capital Lease shall mean, as applied to any Person, any
lease of any Property (whether real, personal or mixed) by such Person, as
lessee, that, in conformity with GAAP, is accounted for as a capital lease on
the balance sheet of that Person.

 

Capitalized Lease Obligations shall mean all obligations
under Capital Leases of the Borrower or any of its Subsidiaries in each case
taken at the amount thereof accounted for as liabilities and identified as “capital
lease obligations” (or any similar words) on a consolidated balance sheet of
the Borrower and its Subsidiaries prepared in accordance with GAAP.

 

Cash Equivalents shall mean any of the following:

 

(a)           securities
issued or directly and fully guaranteed or insured by the United States of
America or any agency or instrumentality thereof (provided
that the full faith and credit of the United States of America is pledged in
support thereof) having maturities of not more than one year from the date of
acquisition;

 

(b)           Dollar
denominated time deposits, certificates of deposit and bankers’ acceptances of (i) any
Lender or (ii) any bank whose short-term commercial paper rating from (A) S&P
is at least A-1 or the equivalent thereof or from (B) Moody’s is at least
P-1 or the equivalent thereof (any such bank, an “Approved Bank”), in each case
with maturities of not more than three months from the date of acquisition;

 

(c)           commercial
paper issued by any Lender or Approved Bank or by the parent company of any
Lender or Approved Bank and commercial paper issued by, or guaranteed by, any
industrial or financial company with a short- term commercial paper rating of
at least A-1 or the equivalent thereof by S&P or at least P-1 or the
equivalent thereof by Moody’s, or guaranteed by any industrial company with a
long term unsecured debt rating of at least A or A2, or the equivalent of each
thereof, from S&P or Moody’s, as the case may be, and in each case maturing
within 90 days after the date of acquisition;

 

3

 

(d)           investments
in money market funds substantially all the assets of which are comprised of
securities of the types described in clauses (a) through (c) above;
and

 

(e)           investments
in money market funds access to which is provided as part of “sweep” accounts
maintained with a Lender or an Approved Bank.

 

CERCLA shall mean the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as the same may be amended
from time to time, 42 U.S.C. § 9601 et seq.

 

Change in Law shall mean the
occurrence, after the date of this Agreement, of any of the following: (a) the
adoption or taking effect of any Law, (b) any change in any Law or in the
administration, interpretation or application thereof by any Official Body or (c) the
making or issuance of any request, guideline or directive (whether or not
having the force of Law) by any Official Body.

 

Change of Control shall mean any
of the following:

 

(a)           during
any 12-month period (or, if less, during the period beginning on the Closing
Date and ending on the date of determination), individuals who at the beginning
of such period constituted the Parent’s  Board of
Directors (together with any new directors whose election by the Parent’s Board
of Directors or whose nomination for election by the Parent’s  shareholders was approved by a vote of a majority of the
directors who either were directors at the beginning of such period or whose
election or nomination was previously so approved) cease for any reason to
constitute a majority of the Board of Directors of the Parent;

 

(b)           any
“person” or “group” (as such terms
are used in Sections 13(d) and 14(d) of the 1934 Act, but
excluding any employee benefit plan of such person or its subsidiaries, and any
person or entity acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3
and 13d-5 under the 1934 Act, except that a person or group shall be deemed to
have “beneficial ownership” of all securities that such person or group has the
right to acquire (such right, an “option right”), whether such
right is exercisable immediately or only after the passage of time), directly
or indirectly, of 20% or more of the equity securities of the Parent entitled
to vote for members of the board of directors or equivalent governing body of
the Parent on a fully-diluted basis (and taking into account all such
securities that such person or group has the right to acquire pursuant to any
option right); or

 

(c)           the
Parent shall cease to own, free and clear of all Liens and other encumbrances
and on a fully diluted basis, 100% of the outstanding shares of all classes of
stock of the Borrower ordinarily having the right to vote at an election of
directors, or any contingency shall occur that causes any class of stock of the
Borrower, the shares of which are not owned by the Parent, to have the right to
vote at an election of directors.

 

Closing Date shall mean April 21,
2009.

 

4

 

Code shall mean the
Internal Revenue Code of 1986, as the same may be amended or supplemented from
time to time, and any successor statute of similar import, and the rules and
regulations thereunder, as from time to time in effect.

 

Commitment shall mean as
to any Lender its Revolving Credit Commitment, and Commitments shall
mean the aggregate of the Revolving Credit Commitments of all of the Lenders.

 

Compliance Certificate shall have the
meaning specified in Section 7.3.3 [Certificate of the Borrower].

 

Consolidated Net Income shall mean, for any period,
the net income (or loss), without deduction for minority interests, of the
Borrower and its Subsidiaries on a consolidated basis for such period taken as
a single accounting period determined in conformity with GAAP.

 

Consolidated Net Worth shall mean, at any time,
all amounts that, in conformity with GAAP, would be included under the caption “total
stockholders’ equity” (or any like caption) on a consolidated
balance sheet of the Borrower as of such time, provided
that in no event shall Consolidated Net Worth include any amounts in respect of
Redeemable Stock.

 

Consolidated Tangible Assets shall mean at any time the
consolidated total assets of the Borrower and its Subsidiaries calculated on a
consolidated basis as of such time, but excluding therefrom goodwill, patents,
patent applications, permits, trademarks, trade names, copyrights, licenses,
franchises, experimental expense, organizational expense, unamortized debt
discount and expense, the excess of cost of shares acquired over book value of
related assets and such other assets that are properly classified as “intangible
assets” in accordance with GAAP.

 

Consolidated Total Capitalization shall mean the sum of
Consolidated Total Debt and Consolidated Net Worth and, to the extent not otherwise included, preferred stock of the
Borrower.

 

Consolidated Total Debt shall mean the sum (without
duplication) of all Indebtedness of the Borrower and of each of its
Subsidiaries, all as determined on a consolidated basis.

 

Controlled Group shall mean all
members of a controlled group of corporations or other business entities and
all trades or businesses (whether or not incorporated) under common control
that, together with the Borrower or any of its Subsidiaries, are treated as a
single employer under Section 414 of the Code.

 

Daily LIBOR Rate shall mean,
for any day, the rate per annum determined by the Administrative Agent by
dividing (a) the Published Rate by (b) a number equal to 1.00 minus
the LIBOR Reserve Percentage on such day.

 

Defaulting Lender  shall mean any Lender
that (a) has failed to fund any portion of the Loans required to be funded
by it hereunder within one Business Day of the date required to be funded by it
hereunder unless such failure has been cured and all interest accruing as a
result of such failure has been fully paid in accordance with the terms hereof,
(b) has otherwise failed

 

5

 

to pay over to the
Administrative Agent or any other Lender any other amount required to be paid
by it hereunder within one Business Day of the date when due, unless the
subject of a good faith dispute or unless such failure has been cured and all
interest accruing as a result of such failure has been fully paid in accordance
with the terms hereof, or (c) has since the date of this Agreement been
deemed insolvent by an Official Body or become the subject of a bankruptcy,
receivership, conservatorship or Relief Proceeding of such Lender.

 

Delinquent Lender shall have the
meaning specified in Section 4.3 [Sharing of Payments by Lenders].

 

Dollar, Dollars, U.S.
Dollars and the symbol $ shall mean lawful money of the United States
of America.

 

Energy-Related Business shall mean any
business engaged in or directly related to: 
(a) the production, sale, brokerage, management, transportation,
delivery or other provision of energy products, including but not limited to,
electricity, natural gas, oil, coal, propane and renewable energy producing
materials, (b) the provision of energy conservation services, including,
but not limited to, energy audits, installation of energy conservation devices,
energy efficient equipment and related systems, (c) the provision of
services and equipment in connection with the procurement of such energy
products or conservation of energy, (d) engineering, consulting,
construction, operational or maintenance services in connection with such
energy products, the conservation of energy or with equipment utilizing such
energy products or (e) the manufacturing of equipment used in connection
with energy production or conservation.

 

Environmental Claims shall mean any and all
administrative, regulatory or judicial actions, suits, demands, demand letters,
claims, liens, notices of non-compliance or violation, investigations or
proceedings relating in any way to any Environmental Law or any permit issued
under any such law, including, without limitation, (a) any and all claims
by governmental or regulatory authorities for enforcement, cleanup, removal,
response, remedial or other actions or damages pursuant to any applicable
Environmental Law, and (b) any and all claims by any third party seeking
damages, contribution, indemnification, cost recovery, compensation or
injunctive relief resulting from the storage, treatment or Release (as defined
in CERCLA) of any Hazardous Materials or arising from alleged injury or threat
of injury to health, safety or the environment.

 

Environmental Law shall mean any applicable Federal, state,
foreign or local statute, law, rule, regulation, ordinance, code, binding and
enforceable guideline, binding and enforceable written policy and rule of
common law now or hereafter in effect and in each case as amended, and any
binding and enforceable judicial or administrative interpretation thereof,
including, without limitation, any judicial or administrative order, consent,
decree or judgment issued to or rendered against the Borrower or any of its
Subsidiaries relating to the environment, employee health and safety or
Hazardous Materials, including, without limitation, CERCLA; RCRA; 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
Safe Drinking Water Act, 42 U.S.C. § 300f et seq.;
the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et seq.;
the Emergency Planning and the Community Right-to-Know Act of 1986, 42 U.S.C. §
11001 et seq., the Hazardous Material
Transportation Act, 49

 

6

 

U.S.C.
§ 5101 et seq. and the Occupational
Safety and Health Act, 29 U.S.C. § 651 et seq. (to
the extent it regulates occupational exposure to Hazardous Materials); and any
state and local or foreign counterparts or equivalents, in each case as amended
from time to time.

 

ERISA shall mean the
Employee Retirement Income Security Act of 1974, as the same may be amended or
supplemented from time to time, and any successor statute of similar import,
and the rules and regulations thereunder, as from time to time in effect.

 

Event of Default shall mean any
of the events described in Section 8.1 [Events of Default] and referred to
therein as an “Event of Default.”

 

Excluded Taxes shall mean,
with respect to the Administrative Agent, any Lender, or any other recipient of
any payment to be made by or on account of any obligation of the Borrower
hereunder, (a) taxes imposed on or measured by its overall net income
(however denominated), and franchise taxes imposed on it (in lieu of net income
taxes), by the jurisdiction (or any political subdivision thereof) under the
Laws of which such recipient is organized or in which its principal office is
located or, in the case of any Lender, in which its applicable lending office is
located, (b) any branch profits taxes imposed by the United States of
America or any similar tax imposed by any other jurisdiction in which the
Borrower is located, (c) in the case of a Foreign Lender, any withholding
tax that is imposed on amounts payable to such Foreign Lender at the time such
Foreign Lender becomes a party hereto (or designates a new lending office) or
is attributable to such Foreign Lender’s failure or inability (other than as a
result of a Change in Law) to comply with Section 4.8.5 [Status of
Lenders], except to the extent that such Foreign Lender (or its assignor, if
any) was entitled, at the time of designation of a new lending office (or
assignment), to receive additional amounts from the Borrower with respect to
such withholding tax pursuant to Section 4.8.1 [Payment Free of Taxes] and (d) any
U.S. federal backup withholding tax that is imposed under Section 3046 of
the Internal Revenue Code as a result of (i) the failure of any Lender to
provide the Borrower with a duly completed valid Form W-9 or other form
prescribed by Applicable Law for that purpose that includes its correct
taxpayer identification number or (ii) notification from the Internal
Revenue Service that such Lender has underreported interest income.

 

Executive Order No. 13224 shall mean the
Executive Order No. 13224 on Terrorist Financing, effective September 24,
2001, as the same has been, or shall hereafter be, renewed, extended, amended
or replaced.

 

Expiration Date shall mean,
with respect to the Commitments, April 20, 2010.

 

Facility Fees shall mean the
fees referred to in Sections 2.3 [Facility Fees].

 

Federal Funds Effective Rate for any day
shall mean the rate per annum (based on a year of 360 days and actual days
elapsed and rounded upward to the nearest 1/100 of 1%) announced by the Federal
Reserve Bank of New York (or any successor) on such day as being the weighted
average of the rates on overnight federal funds transactions arranged by
federal funds brokers on the previous trading day, as computed and announced by
such Federal Reserve Bank (or any successor) in substantially the same manner
as such Federal Reserve Bank computes and announces the weighted average it
refers to as the “Federal Funds Effective Rate”

 

7

 

as of the date of this
Agreement; provided, if such Federal Reserve Bank (or its successor)
does not announce such rate on any day, the “Federal Funds Effective Rate” for
such day shall be the Federal Funds Effective Rate for the last day on which such
rate was announced.

 

Federal Funds Open Rate for any day
shall mean the rate per annum (based on a year of 360 days and actual days
elapsed) which is the daily federal funds open rate as quoted by ICAP North
America, Inc. (or any successor) as set forth on the Bloomberg Screen BTMM
for that day opposite the caption “OPEN” (or on such other substitute Bloomberg
Screen that displays such rate), or as set forth on such other recognized
electronic source used for the purpose of displaying such rate as selected by
the Administrative Agent (an “Alternate Source”) (or if such rate for such day
does not appear on the Bloomberg Screen BTMM (or any substitute screen) or on
any Alternate Source, or if there shall at any time, for any reason, no longer
exist a Bloomberg Screen BTMM (or any substitute screen) or any Alternate
Source, a comparable replacement rate determined by the Administrative Agent at
such time (which determination shall be conclusive absent manifest error);
provided however, that if such day is not a Business Day, the Federal Funds
Open Rate for such day shall be the “open” rate on the immediately preceding
Business Day.  If and when the Federal
Funds Open Rate changes, the rate of interest with respect to any advance to
which the Federal Funds Open Rate applies will change automatically without
notice to the Borrower, effective on the date of any such change.

 

Fitch shall mean Fitch Investors Service Inc. and its
successors.

 

Fitch Rating shall mean, on any date of determination, the
rating accorded the Borrower’s senior unsecured long-term debt by Fitch (or if
the Obligations are secured, the rating accorded to the Borrower’s senior
secured long-term debt by Fitch), or if such rating is unavailable, the
Borrower’s long-term issuer default rating accorded to it by Fitch.

 

Foreign Lender shall mean any
Lender that is organized under the Laws of a jurisdiction other than that in
which the Borrower is resident for tax purposes.  For purposes of this definition, the United
States of America, each State thereof and the District of Columbia shall be
deemed to constitute a single jurisdiction.

 

FPA shall mean the Federal Power Act, as amended, and
all rules and regulations promulgated thereunder.

 

GAAP shall mean
generally accepted accounting principles as are in effect from time to time,
subject to the provisions of Section 1.3 [Accounting Principles], and
applied on a consistent basis both as to classification of items and amounts.

 

Guaranty Obligations shall mean as to any Person
(without duplication) any obligation of such Person guaranteeing any
Indebtedness (“primary Indebtedness”) of any other
Person (the “primary obligor”) in any manner, whether
directly or indirectly, including, without limitation, any obligation of such
Person, whether or not contingent, (a) to purchase any such primary
Indebtedness or any Property constituting direct or indirect security therefor,
(b) to advance or supply funds (i) for the purchase or payment of any
such primary Indebtedness or (ii) to maintain working capital or equity
capital of the primary obligor or otherwise to maintain the net worth or
solvency of the primary obligor, (c) to purchase Property, securities or
services

 

8

 

primarily
for the purpose of assuring the owner of any such primary Indebtedness of the
ability of the primary obligor to make payment of such primary Indebtedness, or
(d) otherwise to assure or hold harmless the owner of such primary
Indebtedness against loss in respect thereof, provided,
however, that the term Guaranty Obligation shall not include
endorsements of instruments for deposit or collection in the ordinary course of
business.  The amount of any Guaranty
Obligation shall be deemed to be an amount equal to the stated or determinable
amount of the primary Indebtedness in respect of which such Guaranty Obligation
is made or, if not stated or determinable, the maximum reasonably anticipated
liability in respect thereof (assuming such Person is required to perform
thereunder) as determined by such Person in good faith.

 

Hazardous Materials shall mean (a) any
petrochemical or petroleum products, radioactive materials, asbestos in any
form that is or could become friable, urea formaldehyde foam insulation,
transformers or other equipment that contain dielectric fluid containing levels
of polychlorinated biphenyls, and radon gas; and (b) any chemicals,
materials or substances defined as or included in the definition of “hazardous
substances”, “hazardous wastes”, “hazardous materials”, “restricted hazardous
materials”, “extremely hazardous wastes”, “restrictive
hazardous wastes”, “toxic substances”, “toxic
pollutants”, “contaminants” or “pollutants”, or words of
similar meaning and regulatory effect, under any applicable Environmental Law.

 

Indebtedness shall mean, with respect to any Person, all of the
following (without duplication):

 

(a)           all
indebtedness of such Person for borrowed money;

 

(b)           all
bonds, notes, debentures and similar debt securities of such Person;

 

(c)           the
deferred purchase price of capital assets or services that in accordance with
GAAP would be shown on the liability side of the balance sheet of such Person;

 

(d)           non-contingent
obligations to reimburse any other Person in respect of amounts paid under a
letter of credit or similar instrument to the extent that such reimbursement
obligations remain outstanding after such obligations become non-contingent;

 

(e)           all
obligations, contingent or otherwise, of such Person in respect of bankers’
acceptances;

 

(f)            all
Indebtedness of a second Person secured by any Lien on any Property owned by
such first Person, whether or not such Indebtedness has been assumed;

 

(g)           all
Capitalized Lease Obligations of such Person;

 

(h)           the
present value, determined on the basis of the implicit interest rate, of all
basic rental obligations under all Synthetic Leases of such Person;

 

(i)            the
full outstanding balance of trade receivables, notes or other instruments sold
with full recourse (and the portion thereof subject to potential recourse, if
sold with limited recourse), other than in any such case any thereof sold
solely for purposes of collection of delinquent accounts;

 

9

 

(j)                                     the stated value, or
liquidation value if higher, of all Redeemable Stock of such Person; and

 

(k)                                  all Guaranty Obligations of
such Person;

 

provided, however, that (i) neither trade payables nor
other similar accrued expenses, in each case arising in the ordinary course of
business, nor obligations in respect of insurance policies or performance or
surety bonds that themselves are not guarantees of Indebtedness (nor drafts,
acceptances or similar instruments evidencing the same nor obligations in respect
of letters of credit supporting the payment of the same), shall constitute
Indebtedness; and (ii) the Indebtedness of any Person shall in any event
include (without duplication) the Indebtedness of any other entity (including
any general partnership in which such Person is a general partner) to the
extent such Person is liable thereon as a result of such Person’s ownership
interest in or other relationship with such entity, except to the extent the
terms of such Indebtedness provide expressly that such Person is not liable
thereon.

 

Indemnified Taxes shall mean
Taxes other than Excluded Taxes.

 

Indemnitee shall have the
meaning specified in Section 10.3.2 [Indemnification by the Borrower].

 

Information shall mean any
and all non-public information received from, or made available by, the
Borrower or any of its Subsidiaries or any of their respective boards of
directors, officers, employees or other representatives relating to the
Borrower or any of such Subsidiaries or any of their respective businesses or
Affiliates or Affiliates’ businesses.

 

Interest Period shall mean the
period of time selected by the Borrower in connection with (and to apply to)
any election permitted hereunder by the Borrower to have Loans bear interest
under the LIBOR Rate Option.  Subject to
the last sentence of this definition, such period shall be one, two, three or
six Months.  Such Interest Period shall
commence on the effective date of such Interest Rate Option, which shall be (i) the
Borrowing Date if the Borrower is requesting new Loans, or (ii) the date
of renewal of or conversion to the LIBOR Rate Option if the Borrower is
renewing or converting to the LIBOR Rate Option applicable to outstanding
Loans.  Notwithstanding the second
sentence hereof: (A) any Interest Period which would otherwise end on a
date which is not a Business Day shall be extended to the next succeeding
Business Day unless such Business Day falls in the next calendar month, in
which case such Interest Period shall end on the next preceding Business Day, and
(B) the Borrower shall not select, convert to or renew an Interest Period
for any portion of the Loans that would end after the Expiration Date.

 

Investment shall mean (a) any direct or indirect purchase
or other acquisition by the Borrower or any of its Subsidiaries of any of the
capital stock or other equity interest of any other Person, including any
partnership or joint venture interest in such Person; (b) any loan or
advance to, guarantee or assumption of debt or purchase or other acquisition of
any other debt (other than accounts receivable and lease, utility or other
deposits arising in the ordinary course of business on terms customary in the
trade) of, any Person by the Borrower or any of its Subsidiaries; or (c) any
purchase or other acquisition (in one transaction or a series of 

 

10

 

transactions) of assets of
another Person that constitute a business unit or all or a substantial part of
the business of, such Person.

 

Interest Rate Option shall mean any
LIBOR Rate Option or Base Rate Option.

 

IRS shall mean the
Internal Revenue Service.

 

Law shall mean any
law (including common law), constitution, statute, treaty, regulation, rule,
ordinance, opinion, release, ruling, order, injunction, writ, decree, bond,
judgment, authorization or approval, lien or award by or settlement agreement
with any Official Body.

 

Leaseholds shall mean,
with respect to any Person, all the right, title and interest of such Person as
lessee or licensee in, to and under leases or licenses of land, improvements
and/or fixtures.

 

Lender Provided Swap shall mean any
Swap provided pursuant to a Swap Agreement to the Borrower which is provided by
any Lender or its Affiliate and with respect to which the Administrative Agent
confirms: (i) is documented in a standard International Swap Dealer
Association Agreement, (ii) provides for the method of calculating the
reimbursable amount of the provider’s credit exposure in a reasonable and
customary manner, and (iii) is entered into for hedging (rather than
speculative) purposes.

 

Lenders shall mean the
financial institutions named on Schedule 1.1(B) and their
respective successors and assigns as permitted hereunder, each of which is
referred to herein as a Lender.

 

LIBOR Rate shall mean,
with respect to the Loans comprising any Borrowing Tranche to which the LIBOR
Rate Option applies for any Interest Period, the interest rate per annum
determined by the Administrative Agent by dividing (the resulting quotient
rounded upwards, if necessary, to the nearest 1/100th of 1% per annum) (i) the
rate which appears on the Bloomberg Page BBAM1 (or on such other
substitute Bloomberg page that displays rates at which US dollar deposits
are offered by leading banks in the London interbank deposit market), or the
rate which is quoted by another source selected by the Administrative Agent
which has been approved by the British Bankers’ Association as an authorized
information vendor for the purpose of displaying rates at which US dollar
deposits are offered by leading banks in the London interbank deposit market (a
“LIBOR Alternate Source”), at approximately 11:00 a.m. London time, two (2) Business
Days prior to the commencement of such Interest Period as the London interbank
offered rate for U.S. Dollars for an amount comparable to such Borrowing
Tranche and having a borrowing date and a maturity comparable to such Interest
Period (or if there shall at any time, for any reason, no longer exist a
Bloomberg Page BBAM1 (or any substitute page) or any LIBOR Alternate
Source, a comparable replacement rate determined by the Administrative Agent at
such time (which determination shall be conclusive absent manifest error)), by (ii) a
number equal to 1.00 minus the LIBOR Reserve Percentage.  LIBOR may also be expressed by the following
formula:

 

11

 

Average
of London interbank offered rates quoted 

by Bloomberg or appropriate successor as shown on

 

	
  LIBOR =

  	
  Bloomberg
  Page BBAM1

  
	
   

  	
  1.00
  - LIBOR Reserve Percentage

  

 

The LIBOR Rate shall be adjusted with respect
to any Loan to which the LIBOR Rate Option applies that is outstanding on the
effective date of any change in the LIBOR Reserve Percentage as of such
effective date.  The Administrative Agent
shall give prompt notice to the Borrower of the LIBOR Rate as determined or
adjusted in accordance herewith, which determination shall be conclusive absent
manifest error.

 

LIBOR Rate Option shall mean the
option of the Borrower to have Loans bear interest at the rate and under the
terms set forth in Section 3.1.1(ii) [Revolving Credit LIBOR Rate
Option].

 

LIBOR Reserve Percentage shall mean as
of any day the maximum percentage in effect on such day, as prescribed by the
Board of Governors of the Federal Reserve System (or any successor) for
determining the reserve requirements (including supplemental, marginal and
emergency reserve requirements) with respect to eurocurrency funding (currently
referred to as “Eurocurrency Liabilities”).

 

Lien shall mean any
mortgage, deed of trust, pledge, lien, security interest, charge or other
encumbrance or security arrangement of any nature whatsoever, whether
voluntarily or involuntarily given, including any conditional sale or title
retention arrangement, and any assignment, deposit arrangement or lease
intended as, or having the effect of, security and any filed financing
statement or other notice of any of the foregoing (whether or not a lien or
other encumbrance is created or exists at the time of the filing).

 

Loan Documents shall mean
this Agreement, the Administrative Agent’s Letter, the Notes and any other
instruments, certificates or material documents delivered in connection
herewith or therewith.

 

Loan Request shall have the
meaning specified in Section 2.4 [Revolving Credit Loan Requests].

 

Loans shall mean
collectively and Loan shall mean separately all Revolving Credit Loans
or any Revolving Credit Loan.

 

Margin Stock shall have the meaning provided in Regulation U.

 

Material Adverse Effect shall mean any
set of circumstances or events which (a) has any material adverse effect
whatsoever upon the validity or enforceability of this Agreement or any other
Loan Document, (b) is expected to be material and adverse to the business,
properties, assets, financial condition, results of operations or prospects of
the Borrower and its Subsidiaries, taken as a whole, (c) impairs
materially the ability of the Borrower and its Subsidiaries, taken as a
whole to pay any liabilities or obligations as they mature or become due, or (d) impairs
materially the ability of the Administrative Agent or any of 

 

12

 

the Lenders, to the extent permitted, to
enforce their legal remedies pursuant to this Agreement or any other Loan
Document.

 

Month, with respect
to an Interest Period under the LIBOR Rate Option, shall mean the interval
between the days in consecutive calendar months numerically corresponding to
the first day of such Interest Period. 
If any LIBOR Rate Interest Period begins on a day of a calendar month
for which there is no numerically corresponding day in the month in which such
Interest Period is to end, the final month of such Interest Period shall be
deemed to end on the last Business Day of such final month.

 

Moody’s shall mean Moody’s Investors Service, Inc. and
its successors.

 

Moody’s Rating shall mean, on any date of determination,
the rating accorded the Borrower’s senior unsecured long-term debt by Moody’s
(or if the Obligations are secured, the rating accorded to the Borrower’s
senior secured long-term debt by Moody’s), or if such rating is unavailable,
the Borrower’s long-term issuer credit rating accorded to it by Moody’s.

 

Multiemployer Plan shall mean a Plan
maintained pursuant to a collective bargaining agreement or any other
arrangement as to which the Borrower or any member of the Controlled Group is a
party to which more than one employer is obligated to make contributions.

 

1933 Act shall mean the Securities Act of 1933, as amended.

 

1934 Act shall mean the Securities Exchange Act of 1934, as
amended.

 

Non-Consenting Lender shall have the
meaning specified in Section 10.1 [Modifications, Amendments or Waivers].

 

Notes shall mean the
promissory notes in the form of Exhibit 1.1(N) evidencing the
Loans.

 

Notices shall have the
meaning specified in Section 10.5 [Notices; Effectiveness; Electronic
Communication].

 

Obligation shall mean any
obligation or liability of the Borrower, howsoever created, arising
or evidenced, whether direct or indirect, absolute or contingent, now or
hereafter existing, or due or to become due, under or in connection with (i) this
Agreement, the Notes,  the
Administrative Agent’s Letter or any other Loan Document whether to the
Administrative Agent, any of the Lenders or their Affiliates or other persons
provided for under such Loan Documents, (ii) any Lender Provided Swap and (iii) any
Other Lender Provided Financial Service Products.

 

Official Body shall mean the
government of the United States of America or any other nation, or of any
political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other
entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government (including
any supra-national bodies such as the European Union or the European Central
Bank).

 

13

 

Operating Lease shall mean, with respect to any Person, any
lease of any Property (whether real, personal or mixed) by such Person as
lessee that, in conformity with GAAP, is not accounted for as a Capital Lease
on the balance sheet of such Person.

 

Other Lender Provided
Financial Service Products shall mean agreements or
other arrangements under which any Lender or Affiliate of a Lender provides any
of the following products or services to the Borrower: (a) credit
cards, (b) credit card processing services, (c) debit cards, (d) purchase
cards, (e) ACH Transactions, (f) cash management, including
controlled disbursement, accounts or services, or (g) foreign currency
exchange.

 

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

 

Parent shall mean DPL Inc., an Ohio corporation.

 

Participant has the
meaning specified in Section 10.8.4 [Participations].

 

Payment Date shall mean the
first day of each calendar quarter after the date hereof and on the Expiration
Date or upon acceleration of the Notes.

 

Payment In Full shall mean
payment in full in cash of the Loans and other Obligations hereunder and the
termination of the Commitments.

 

PBGC shall mean the
Pension Benefit Guaranty Corporation established pursuant to Subtitle A of
Title IV of ERISA or any successor.

 

Permitted Acquisition shall mean and include any
Acquisition as to which all of the following conditions are satisfied:  (a) such Acquisition (i) involves a
line or lines of an Energy-Related Business, and (ii) involves a Person or
a line or lines of business that are located and operated in the United States;
(b) no Potential Default or Event of Default shall exist prior to or
immediately after giving effect to such Acquisition; (c) such Acquisition
is not being consummated on a hostile basis and has been approved by the Board
of Directors of the target Person and no material challenge to such Acquisition
shall be pending or threatened by any shareholder or director of the seller or
Person to be acquired, and (d) as of the date of the consummation of such
Acquisition, all approvals required in connection therewith shall have been
obtained.

 

Permitted Liens shall mean Liens permitted by Section 7.2.2
[Liens].

 

Permitted Restrictive Covenant shall mean (a) any
covenant or restriction contained in this Agreement, (b) any covenant or
restriction contained in any other agreement that is less burdensome than any
covenant or restriction contained in this Agreement, (c) in the case of
transfers by any Subsidiary of the Borrower to the Borrower or another
Subsidiary of the Borrower of any property or assets, any agreement setting
forth customary restrictions on the subletting, assignment or transfer of any
property or asset that is a lease, license or conveyance 

 

14

 

of similar property or
assets; (d) in the case of transfers by any Subsidiary of the Borrower to
the Borrower or another Subsidiary of the Borrower of any property or assets,
any agreement with the holder of a Lien otherwise permitted to exist under Section 7.2.2(v)(2) restricting
on customary terms the transfer of any property or assets subject thereto; (e) any
agreement evidencing or setting forth the terms of any refunding, refinancing
or replacement Indebtedness the incurrence of which is not prohibited by this
Agreement that contains any such restrictions to the extent such restrictions
are no less favorable to the Borrower or any of its Subsidiaries or to the
rights or interest of the Lenders than the terms in effect in the Indebtedness
being so refunded, refinanced or replaced immediately prior to such refunding,
refinancing or replacement; (f) any agreement that has been entered into
by the Borrower or any of its Subsidiaries for the sale, lease, transfer or
other disposition of any of its property or assets so long as such sale, lease,
transfer or other disposition is otherwise permitted to be made under Section 7.2.3
[Merger, Consolidation, Asset Sales]; and (g) any agreement evidencing
Indebtedness outstanding on the date a Person first becomes a Subsidiary of the
Borrower; provided, that such agreement was not
created in contemplation of the purchase or other acquisition of such Person by
the Borrower or any of its Subsidiaries and does not extend to or cover any
property or assets other than the property or assets of the Person becoming
such Subsidiary.

 

Plan shall mean an
employee pension benefit plan that is covered by Title IV of ERISA or subject
to minimum funding standards under Section 412 of the Code as to which the
Borrower or any member of the Controlled Group may have any liability.

 

Person shall mean any
individual, corporation, partnership, limited liability company, association,
joint-stock company, trust, unincorporated organization, joint venture,
government or political subdivision or agency thereof, or any other entity.

 

PNC shall mean PNC
Bank, National Association, its successors and assigns.

 

Potential Default shall mean any
event or condition which with notice or passage of time, or both, would
constitute an Event of Default.

 

Prime Rate shall mean the
interest rate per annum announced from time to time by the Administrative Agent
at its Principal Office as its then prime rate, which rate may not be the
lowest or most favorable rate then being charged commercial borrowers or others
by the Administrative Agent.  Any change
in the Prime Rate shall take effect at the opening of business on the day such
change is announced.

 

Principal Office shall mean the
main banking office of the Administrative Agent in Pittsburgh, Pennsylvania.

 

Property shall mean, with respect to any Person, any and all
property, whether real, personal, tangible, intangible, or mixed, of such
Person, or other assets owned, leased or operated by such Person.

 

Published Rate shall mean the rate of interest published
each Business Day in The Wall Street Journal
“Money Rates” listing under the caption “London
Interbank Offered Rates” for a one month period (or, if no such rate
is published therein for any reason, then the Published 

 

15

 

Rate shall be the eurodollar
rate for a one month period as published in another publication selected by the
Administrative Agent).

 

Ratable Share shall mean the
proportion that a Lender’s Commitment bears to the Commitments of all of the
Lenders.  If the Commitments have
terminated or expired, the Ratable Shares shall be determined based upon the
Commitments most recently in effect, giving effect to any assignments.

 

Rating Agency shall mean any of Fitch, Moody’s or S&P.

 

Ratings shall mean any of Fitch Ratings, Moody’s Ratings or
S&P Ratings.

 

RCRA shall mean the Resource Conservation and Recovery
Act, as the same may be amended from time to time, 42 U.S.C. § 6901 et
seq.

 

Real Property shall mean, with respect to any Person, all
of the right, title and interest of such Person in and to land, improvements
and fixtures, including Leaseholds.

 

Redeemable Stock shall mean, with respect to any Person, any
capital stock or similar equity interests of such Person that (a) is by
its terms subject to mandatory redemption, in whole or in part, pursuant to a
sinking fund, scheduled redemption or similar provisions, at any time prior to
the latest Expiration Date; or (b) otherwise is required to be repurchased
or retired on a scheduled date or dates, upon the occurrence of any event or
circumstance, at the option of the holder or holders thereof, or otherwise, at
any time prior to the latest Expiration Date under this Agreement, other than
any such repurchase or retirement occasioned by a “change of control” or
similar event.

 

Regulation U shall mean Regulation U of the Board of Governors
of the Federal Reserve System as from time to time in effect and any successor
to all or a portion thereof establishing margin requirements.

 

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

 

Relief Proceeding shall mean any
proceeding seeking a decree or order for relief for any Person in a voluntary
or involuntary case under any applicable bankruptcy, insolvency, reorganization
or other similar law now or hereafter in effect, or for the appointment of a
receiver, liquidator, assignee, custodian, trustee, sequestrator, conservator
(or similar official) of such Person for any substantial part of
its property, or for the winding-up or liquidation of its affairs, or an
assignment for the benefit of its creditors. 
Unless otherwise expressly provided, all references used in this
definition to “Person” shall mean the Borrower and/or its Subsidiaries.

 

Reportable Event shall mean a reportable event as defined in Section 4043
of ERISA and the regulations issued under such section, with respect a Plan,
excluding, however, such events as to which the PBGC has by regulations waived
the requirement of Section 4043(a) of ERISA that it be notified
within 30 days of the occurrence of such event; provided,
however, 

 

16

 

that a failure to meet the
minimum funding standard of Section 412 of the Code and of Section 302
of ERISA shall be a Reportable Event regardless of the issuance any such waiver
of the notice requirement in accordance with either Section 4043(a) of
ERISA or Section 412(d) of the Code.

 

Required Lenders shall mean

 

(A)                              If there exists fewer than
three (3) Lenders, all Lenders (other than any Defaulting Lender),
and

 

(B)                                If there exist three (3) or
more Lenders:

 

(i)                                     if there are no Loans
outstanding, Lenders (excluding each Defaulting Lender) whose Commitments
aggregate at least 51% of the Commitments of all of the Lenders, or

 

(ii)                                  if there are Loans
outstanding, any group of Lenders if the sum of the Loans of such group of
Lenders (excluding each Defaulting Lender) then outstanding aggregates at least
51% of the total principal amount of all of the Loans of all of the Lenders
(excluding each Defaulting Lender) then outstanding.

 

Revolving Credit Commitment shall mean, as
to any Lender at any time, the amount initially set forth opposite its name on Schedule
1.1(B) in the column labeled “Amount of Commitment for Revolving
Credit Loans,” as such Commitment is thereafter assigned or modified and Revolving
Credit Commitments shall mean the aggregate Revolving Credit Commitments of
all of the Lenders.

 

Revolving Credit Loans shall mean
collectively and Revolving Credit Loan shall mean separately all
Revolving Credit Loans or any Revolving Credit Loan made by the Lenders or one
of the Lenders to the Borrower pursuant to Section 2.1 [Revolving Credit
Commitments].

 

Revolving Facility Usage shall mean at
any time the sum of the outstanding Loans.

 

S&P shall mean Standard & Poor’s Ratings
Group, a division of McGraw Hill, Inc., and its successors.

 

S&P Rating shall mean, on any date of determination,
the rating accorded to the Borrower’s senior unsecured long-term debt by
S&P (or if the Obligations are secured, the rating accorded to the Borrower’s
senior secured long-term debt by S&P).

 

Sale and Lease-Back Transaction shall mean any arrangement
with any Person providing for the leasing by the Borrower or any Subsidiary of
the Borrower of any Property (except for temporary leases for a term, including
any renewal thereof, of not more than one year and except for leases between
the Borrower and a Subsidiary of the Borrower or between Subsidiaries of the
Borrower), which Property has been or is to be sold or transferred by the
Borrower or such Subsidiary to such Person.

 

17

 

SEC shall mean the United States Securities and
Exchange Commission.

 

Single Employer Plan shall mean a Plan maintained
by the Borrower or any member of the Controlled Group for employees of the
Borrower or any member of the Controlled Group.

 

Standard Permitted Liens shall mean the following:

 

(a)                                  Liens for taxes not yet
delinquent or Liens for taxes being contested in good faith and by appropriate
proceedings for which adequate reserves in accordance with GAAP have been
established;

 

(b)                                 Liens in respect of Property
or assets imposed by law that were incurred in the ordinary course of business,
such as carriers’, warehousemen’s, materialmen’s and mechanics’ Liens and other
similar Liens arising in the ordinary course of business, that (i) do not
secure payment obligations more than 60 days past due; (ii) do not, in the
aggregate, materially detract from the value of such Property or assets or
materially impair the use thereof in the operation of the business of the
Borrower or any of its Subsidiaries and do not secure any Indebtedness; or (iii) are
contested in good faith by appropriate proceedings and for which adequate
reserves shall have been set aside on the books of the Borrower or its
respective Subsidiary, as the case may be;

 

(c)                                  bankers’ Liens and rights of
setoff arising by operation of law and contractual rights of setoff;

 

(d)                                 Liens arising from judgments,
decrees or attachments in circumstances not constituting an Event of Default
under Section 8.1.6 [Final Judgments or Orders];

 

(e)                                  Liens (other than any Lien
imposed by ERISA) incurred or deposits made in the ordinary course of business
in connection with workers’ compensation, unemployment insurance and other
types of social security; and mechanic’s Liens, carrier’s Liens, and other
Liens to secure the performance of tenders, statutory obligations, contract
bids, government contracts, performance and return-of-money bonds and other
similar obligations, incurred in the ordinary course of business (exclusive of
obligations in respect of the payment for borrowed money), whether pursuant to
statutory requirements, common law or consensual arrangements;

 

(f)                                    leases or subleases granted
in the ordinary course of business to others not interfering in any material
respect with the business of the Borrower or any of its Subsidiaries and any
interest or title of a lessor under any lease not in violation of this Agreement;

 

(g)                                 easements, rights-of-way,
zoning or other restrictions, charges, encumbrances, defects in title, prior
rights of other Persons, and obligations contained in similar instruments, in
each case that do not involve, and are not likely to involve at any future
time, either individually or in the aggregate, (i) a substantial and
prolonged 

 

18

 

interruption or disruption
of the business activities of the Borrower and its Subsidiaries considered as
an entirety, or (ii) a Material Adverse Effect;

 

(h)                                 precautionary filing of
Uniform Commercial Code financing statements by lessors in connection with
Operating Leases;

 

(i)                                     Liens arising from the
rights of lessors under leases (including financing statements regarding
Property subject to lease) permitted under this Agreement, provided
that such Liens are only in respect of the Property subject to, and secure
only, the respective lease (and any other lease with the same or an affiliated
lessor); and

 

(j)                                     rights of consignors of
goods, whether or not perfected by the filing of a financing statement under
the UCC.

 

Subsidiary of any Person
at any time shall mean any corporation, trust, partnership, any limited
liability company or other business entity (i) of which 50% or more of the
outstanding voting securities or other interests normally entitled to vote for
the election of one or more directors or trustees (regardless of any
contingency which does or may suspend or dilute the voting rights) is at such
time owned directly or indirectly by such Person or one or more of such Person’s
Subsidiaries, or (ii) whose policies, management and affairs is directed
by such Person or one or more of such Person’s Subsidiaries.  Unless otherwise expressly provided, all
references herein to “Subsidiary” shall mean a Subsidiary of the Borrower.

 

Substantial Portion shall mean, with respect to
the Property of the Borrower and its Subsidiaries, Property that (a) represents
more than 10% of the Consolidated Tangible Assets of the Borrower and its
Subsidiaries as would be shown in the consolidated financial statements of the
Borrower and its Subsidiaries as at the beginning of the twelve-month period
ending with the month in which such determination is made or (b) is
responsible for more than 10% of the consolidated net sales or of the
Consolidated Net Income of the Borrower and its Subsidiaries as reflected in
the financial statements referred to in clause (a) above.

 

Swap Agreement shall mean (a) any and all rate swap
transactions, basis swaps, credit derivative transactions, forward rate
transactions, commodity swaps, commodity options, forward commodity contracts,
equity or equity index swaps or options, bond or bond price or bond index swaps
or options or forward bond or forward bond price or forward bond index
transactions, interest rate options, forward foreign exchange transactions, cap
transactions, floor transactions, collar transactions, currency swap
transactions, cross-currency rate swap transactions, currency options, spot contracts,
or any other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing), irrespective of
whether any such transaction is governed by or subject to any master agreement,
and (b) any and all transactions of any kind, and the related
confirmations, that are subject to the terms and conditions of, or governed by,
any form of master agreement published by the International Swaps and
Derivatives Association, Inc., any International Foreign Exchange Master
Agreement, or any other master agreement (any such master agreement, together
with any related schedules, a “Master Agreement”), including
any such obligations or liabilities under any Master Agreement.

 

19

 

Synthetic Lease shall mean any lease (a) that is
accounted for by the lessee as an Operating Lease, and (b) under which the
lessee is intended to be the “owner” of the leased Property for Federal income
tax purposes.

 

Taxes shall mean all
present or future taxes, levies, imposts, duties, deductions, withholdings,
assessments, fees or other charges imposed by any Official Body, including any
interest, additions to tax or penalties applicable thereto.

 

Unfunded Liabilities shall mean the amount, if
any, by which the present value of all vested and unvested accrued benefits
under all Single Employer Plans exceeds the fair market value of all such Plan
assets allocable to such benefits, all as set forth in the then most recent
annual actuarial valuation report for such Plans provided to the Borrower or
any of its Subsidiaries using the actuarial assumptions set forth in such
report and permitted by applicable law or, in the context of a notice of intent
to terminate, or termination of, a Plan, determined as of the date of the Plan’s
termination using PBGC actuarial assumptions for Plan terminations

 

United States and U.S. each shall mean the
United States of America.

 

USA Patriot Act shall mean the
Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, as the same
has been, or shall hereafter be, renewed, extended, amended or replaced.

 

Wholly-Owned Subsidiary shall mean
each Subsidiary of the Borrower at least 95% of whose capital stock, equity
interests and partnership interests, other than director’s qualifying shares or
similar interests, are owned directly or indirectly by the Borrower.

 

1.2                                 Construction.  Unless the context of this Agreement
otherwise clearly requires, the following rules of construction shall
apply to this Agreement and each of the other Loan Documents: (i) references
to the plural include the singular, the plural, the part and the whole and the
words “include,” “includes” and “including” shall be deemed to be followed by
the phrase “without limitation”; (ii) the words “hereof,” “herein,” “hereunder,”
“hereto” and similar terms in this Agreement or any other Loan Document refer
to this Agreement or such other Loan Document as a whole; (iii) article,
section, subsection, clause, schedule and exhibit references are to this
Agreement or other Loan Document, as the case may be, unless otherwise
specified; (iv) reference to any Person includes such Person’s successors
and assigns; (v) reference to any agreement, including this Agreement and
any other Loan Document together with the schedules and exhibits hereto or
thereto, document or instrument means such agreement, document or instrument as
amended, modified, replaced, substituted for, superseded or restated; (vi) relative
to the determination of any period of time, “from” means “from and including,” “to”
means “to but excluding,” and “through” means “through and including”; (vii) the
words “asset” and “property” shall be construed to have the same meaning and
effect and to refer to any and all tangible and intangible assets and
properties, including cash, securities, accounts and contract rights, (viii) section
headings herein and in each other Loan Document are included for convenience
and shall not affect the interpretation of this Agreement or such Loan
Document, and (ix) unless otherwise specified, all references herein to
times of day shall be references to Eastern Standard Time or Eastern
Daylight Time, as applicable.

 

20

 

1.3                                 Accounting
Principles.  Except as
otherwise provided in this Agreement, all computations and determinations as to
accounting or financial matters and all financial statements to be delivered
pursuant to this Agreement shall be made and prepared in accordance with GAAP
(including principles of consolidation where appropriate), and all accounting
or financial terms shall have the meanings ascribed to such terms by GAAP; provided,
however, that all accounting terms used in Section 7.2 [Negative
Covenants] (and all defined terms used in the definition of any accounting term
used in Section 7.2 [Negative Covenants] shall have the meaning given to
such terms (and defined terms) under GAAP as in effect on the date hereof
applied on a basis consistent with those used in financial statements referred
to in Section 5.1.7 [Financial Statements].  In the event of any change after the date
hereof in GAAP, and if such change would affect the computation of any of the
financial covenants set forth in Section 7.2 [Negative Covenants], then
the parties hereto agree to endeavor, in good faith, to agree upon an amendment
to this Agreement that would adjust such financial covenants in a manner that
would preserve the original intent thereof, but would allow compliance
therewith to be determined in accordance with the Borrower’s financial
statements at that time, provided  that, until so amended such
financial covenants shall continue to be computed in accordance with GAAP prior
to such change therein.

 

2.                                       REVOLVING CREDIT FACILITIES

 

2.1                                 Revolving
Credit Commitments.  Subject to
the terms and conditions hereof and relying upon the representations and
warranties herein set forth, each Lender severally agrees to make Loans to the
Borrower at any time or from time to time on or after the date hereof to the
Expiration Date; provided that after giving effect to such Loan (i) the
aggregate amount of Loans from such Lender shall not exceed such Lender’s
Commitment and (ii) the Revolving Facility Usage shall not exceed the
Commitments.  Within such limits of time
and amount and subject to the other provisions of this Agreement, the Borrower
may borrow, repay and reborrow pursuant to this Section 2.1.

 

2.2                                 Nature of
Lenders’ Obligations with Respect to Revolving Credit Loans.  Each Lender shall be obligated to participate
in each request for Loans pursuant to Section 2.4 [Revolving Credit Loan
Requests] in accordance with its Ratable Share. 
The aggregate of each Lender’s Loans outstanding hereunder to the
Borrower at any time shall never exceed its Commitment.  The obligations of each Lender hereunder are
several.  The failure of any Lender to
perform its obligations hereunder shall not affect the Obligations of the
Borrower to any other party nor shall any other party be liable for the failure
of such Lender to perform its obligations hereunder.  The Lenders shall have no obligation to make
Loans hereunder on or after the Expiration Date.

 

2.3                                 Facility Fees.  The Borrower agrees to pay to the
Administrative Agent on for the account of each Lender, as consideration for
such Lender’s Commitments, a nonrefundable facility fee equal to the Applicable
Facility Fee Rate (computed on the basis of a year of 365 or 366 days, as the
case may be, and actual days elapsed) times such Lender’s Commitment (the “Facility Fee”); provided, however, that any
Facility Fee accrued with respect to the Commitment of a Defaulting Lender
during the period prior to the time such Lender became a Defaulting Lender and
unpaid at such time shall not be payable by the Borrower so long as such Lender
shall be a Defaulting Lender except to the extent that such Facility Fee shall
otherwise 

 

21

 

have been due and payable by
the Borrower prior to such time; and provided  further that no
Facility Fee shall accrue with respect to the Revolving Commitment of a
Defaulting Lender so long as such Lender shall be a Defaulting Lender.  Subject to the proviso in the directly
preceding sentence, all Facility Fees shall be payable in arrears on each
Payment Date.

 

2.4                                 Revolving
Credit Loan Requests. 
Except as otherwise provided herein, the Borrower may from time to time
prior to the Expiration Date request the Lenders to make Loans, or renew or
convert the Interest Rate Option applicable to existing Loans pursuant to Section 3.2
[Interest Periods], by delivering to the Administrative Agent, not later than
11:00 a.m. (i) three (3) Business Days prior to the proposed
Borrowing Date with respect to the making of Loans to which the LIBOR Rate
Option applies or the conversion to or the renewal of the LIBOR Rate Option for
any Loans; and (ii) on the same day as the proposed Borrowing Date,
provided that such Borrowing Date shall be a Business Day (in the event that
such Borrowing Date is not a Business Date, the proposed Borrowing Date shall
be deemed to be the next Business Day), with respect to the making of a Loan to
which the Base Rate Option applies or the last day of the preceding Interest
Period with respect to the conversion to the Base Rate Option for any Loan, of
a duly completed request therefor substantially in the form of Exhibit 2.4
or a request by telephone immediately confirmed in writing by letter, facsimile
or telex in such form (each, a “Loan Request”),
it being understood that the Administrative Agent may rely on the authority of
any individual making such a telephonic request without the necessity of
receipt of such written confirmation. 
Each Loan Request shall be irrevocable and shall specify the aggregate
amount of the proposed Loans comprising each Borrowing Tranche, and, if
applicable, the Interest Period, which amounts shall be in integral multiples
of $500,000 and not less than the lesser of $1,000,000 or the maximum amount
available for each Borrowing Tranche under the LIBOR Rate Option and in
integral multiples of $100,000 and not less than the lesser of $500,000 or the
maximum amount available for Borrowing Tranches under the Base Rate Option.

 

2.5                                 Making Revolving Credit Loans;
Presumptions by the Administrative Agent; Repayment of Revolving Credit Loans.

2.5.1                                           Making
Revolving Credit Loans. 
The Administrative Agent shall, promptly after receipt by it of a Loan
Request pursuant to Section 2.4 [Revolving Credit Loan Requests], notify
the Lenders of its receipt of such Loan Request specifying the information
provided by the Borrower and the apportionment among the Lenders of the
requested Loans as determined by the Administrative Agent in accordance with Section 2.2
[Nature of Lenders’ Obligations with Respect to Revolving Credit Loans].  Each Lender shall remit the principal amount
of each Loan to the Administrative Agent such that the Administrative Agent is
able to, and the Administrative Agent shall, to the extent the Lenders have
made funds available to it for such purpose and subject to Section 6.2
[Each Loan], fund such Loans to the Borrower in U.S. Dollars and immediately
available funds at the Principal Office prior to 2:00 p.m. on the
applicable Borrowing Date; provided that if any Lender fails to remit such
funds to the Administrative Agent in a timely manner, the Administrative Agent
may elect in its sole discretion to fund with its own funds the Loans of such
Lender on such Borrowing Date, and such Lender shall be subject to the
repayment obligation in Section 2.5.2 [Presumptions by the Administrative
Agent].

 

22

 

2.5.2                                           Presumptions by the Administrative Agent.  Unless the Administrative Agent shall have
received notice from a Lender prior to the proposed date of any Loan that such
Lender will not make available to the Administrative Agent such Lender’s share
of such Loan, the Administrative Agent may assume that such Lender has made
such share available on such date in accordance with Section 2.4 [Revolving
Credit Loan Requests] and may, in reliance upon such assumption, make available
to the Borrower a corresponding amount. 
In such event, if a Lender has not in fact made its share of the
applicable Loan available to the Administrative Agent, then the applicable
Lender and the Borrower severally agree to pay to the Administrative Agent
forthwith on demand such corresponding amount with interest thereon, for each
day from and including the date such amount is made available to the Borrower
to but excluding the date of payment to the Administrative Agent, at (i) in
the case of a payment to be made by 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 and (ii) in
the case of a payment to be made by the Borrower, the interest rate applicable
to the Loans.  If such Lender pays its
share of the applicable Loan to the Administrative Agent, then the amount so
paid shall constitute such Lender’s Loan. 
Any payment by the Borrower shall be without prejudice to any claim the
Borrower may have against a Lender that shall have failed to make such payment
to the Administrative Agent.

 

2.5.3                                           Repayment of Revolving Credit Loans.  The Borrower shall repay the Loans together
with all outstanding interest thereon on the Expiration Date.

 

2.6                                 Notes.  The Obligation of the Borrower to repay the
aggregate unpaid principal amount of the Loans made to it by each Lender,
together with interest thereon, shall be evidenced by a revolving credit Note
dated the Closing Date payable to the order of such Lender in a face amount
equal to the Commitment of such Lender.

 

2.7                                 Use of
Proceeds.  The proceeds
of the Loans shall be used for general corporate purposes, including providing
for backup liquidity.

 

2.8                                 Voluntary
Termination.  Upon at least
three (3) Business Days’ prior written notice (or telephonic notice
confirmed in writing) to the Administrative Agent, the Borrower shall have the
right to terminate in whole the Commitment, provided that all outstanding Loans
are contemporaneously prepaid in accordance with this Agreement.

 

3.                                       INTEREST RATES

 

3.1                                 Interest Rate
Options.  The Borrower
shall pay interest in respect of the outstanding unpaid principal amount of the
Loans as selected by it from the Base Rate Option or LIBOR Rate Option set
forth below applicable to the Loans, it being understood that, subject to the
provisions of this Agreement, the Borrower may select different Interest Rate
Options and different Interest Periods to apply simultaneously to the Loans
comprising different Borrowing Tranches and may convert to or renew one or more
Interest Rate Options with respect to all or any portion of the Loans
comprising any Borrowing Tranche; provided that there shall not be at
any one time outstanding more than ten (10) Borrowing Tranches in the
aggregate among all of the Loans and provided further that if an Event
of Default or Potential Default exists and is continuing, the Borrower may not
request, convert to, or renew the LIBOR Rate Option for any Loans and the
Required Lenders may demand that all existing Borrowing Tranches bearing 

 

23

 

interest under the LIBOR
Rate Option shall be converted immediately to the Base Rate Option, subject to
the obligation of the Borrower to pay any indemnity under Section 4.9
[Indemnity] in connection with such conversion. 
If at any time the designated rate applicable to any Loan made by any
Lender exceeds such Lender’s highest lawful rate, the rate of interest on such
Lender’s Loan shall be limited to such Lender’s highest lawful rate.

 

3.1.1                                           Revolving
Credit Interest Rate Options.  The Borrower shall have the right to select
from the following Interest Rate Options applicable to the Loans:

 

(i)                                     Revolving
Credit Base Rate Option:  A
fluctuating rate per annum (computed on the basis of a year of 360 days and
actual days elapsed) equal to the Base Rate plus the Applicable Margin, such
interest rate to change automatically from time to time effective as of the
effective date of each change in the Base Rate; or

 

(ii)                                  Revolving
Credit LIBOR Rate Option:  A
rate per annum (computed on the basis of a year of 360 days and actual days
elapsed) equal to the LIBOR Rate plus the Applicable Margin.

 

3.1.2                                           Rate
Quotations.  The Borrower
may call the Administrative Agent on or before the date on which a Loan Request
is to be delivered to receive an indication of the rates then in effect, but it
is acknowledged that such projection shall not be binding on the Administrative
Agent or the Lenders nor affect the rate of interest which thereafter is
actually in effect when the election is made.

 

3.2                                 Interest
Periods.  At any time
when the Borrower shall select, convert to or renew a LIBOR Rate Option, the
Borrower shall notify the Administrative Agent thereof at least three (3) Business
Days prior to the effective date of such LIBOR Rate Option by delivering a Loan
Request.  The notice shall specify an
Interest Period during which such Interest Rate Option shall apply.  Notwithstanding the preceding sentence, the
following provisions shall apply to any selection of, renewal of, or conversion
to a LIBOR Rate Option:

 

3.2.1                                           Amount of
Borrowing Tranche.  Each
Borrowing Tranche of Loans under the LIBOR Rate Option shall be in integral
multiples of $500,000 and not less than $1,000,000; and

 

3.2.2                                           Renewals.  In the case of the renewal of a LIBOR Rate
Option at the end of an Interest Period, the first day of the new Interest
Period shall be the last day of the preceding Interest Period, without
duplication in payment of interest for such day.

 

3.3                                 Interest After
Default.  To the
extent permitted by Law, upon the occurrence of an Event of Default and until
such time such Event of Default shall have been cured or waived:

 

3.3.1                                           Interest Rate.  The rate of interest for each Loan otherwise
applicable pursuant to Section 3.1 [Interest Rate Options] shall be
increased by 2.0% per annum;

 

3.3.2                                           Other
Obligations.  Each other
Obligation hereunder if not paid when due shall bear interest at a rate per
annum equal to the sum of the rate of interest applicable under 

 

24

 

the Base Rate Option plus an
additional 2.0% per annum from the time such Obligation becomes due and payable
and until it is paid in full; and

 

3.3.3                                           Acknowledgment.  The Borrower acknowledges that the increase
in rates referred to in this Section 3.3 reflects, among other things, the
fact that such Loans or other amounts have become a substantially greater risk given
their default status and that the Lenders are entitled to additional
compensation for such risk; and all such interest shall be payable by Borrower
upon demand by Administrative Agent.

 

3.4                                 LIBOR Rate Unascertainable; Illegality;
Increased Costs; Deposits Not Available.

 

3.4.1                                           Unascertainable.  If on any date on which a LIBOR Rate would
otherwise be determined, the Administrative Agent shall have reasonably
determined that:

 

(i)                                     adequate and
reasonable means do not exist for ascertaining such LIBOR Rate, or

 

(ii)                                  a contingency
has occurred which materially and adversely affects the London interbank
eurodollar market relating to the LIBOR Rate, the Administrative Agent shall
have the rights specified in Section 3.4.3 [Administrative Agent’s and
Lender’s Rights].

 

3.4.2                                           Illegality;
Increased Costs; Deposits Not Available.  If at any time any Lender shall have
reasonably determined that:

 

(i)                                     the making,
maintenance or funding of any Loan to which a LIBOR Rate Option applies has
been made impracticable or unlawful by compliance by such Lender in good faith
with any Law or any interpretation or application thereof by any Official Body
or with any request or directive of any such Official Body (whether or not
having the force of Law),

 

(ii)                                  such LIBOR Rate
Option will not adequately and fairly reflect the cost to such Lender of the
establishment or maintenance of any such Loan, or

 

(iii)                               after making
all reasonable efforts, deposits of the relevant amount in Dollars for the
relevant Interest Period for a Loan, or to banks generally, to which a LIBOR
Rate Option applies, respectively, are not available to such Lender with
respect to such Loan, or to banks generally, in the interbank eurodollar
market,

 

then the Administrative Agent shall have the rights
specified in Section 3.4.3 [Administrative Agent’s and Lender’s Rights].

 

3.4.3                                           Administrative
Agent’s and Lender’s Rights.  In the case of any event specified in Section 3.4.1
[Unascertainable] above, the Administrative Agent shall promptly so notify the
Lenders and the Borrower thereof, and in the case of an event specified in Section 3.4.2
[Illegality; Increased Costs; Deposits Not Available] above, such Lender shall
promptly so notify the Administrative Agent and endorse a certificate to such
notice as to the specific circumstances of such notice, and the Administrative
Agent shall promptly send copies of such notice and certificate to the other
Lenders and the Borrower.  Upon such date
as shall be specified in such notice (which shall not be earlier than the date
such notice is given), the 

 

25

 

obligation of (A) the
Lenders, in the case of such notice given by the Administrative Agent, or (B) such
Lender, in the case of such notice given by such Lender, to allow the Borrower
to select, convert to or renew a LIBOR Rate Option shall be suspended until the
Administrative Agent shall have later notified the Borrower, or such Lender
shall have later notified the Administrative Agent, of the Administrative Agent’s
or such Lender’s, as the case may be, determination that the circumstances
giving rise to such previous determination no longer exist.  If at any time the Administrative Agent makes
a determination under Section 3.4.1 [Unascertainable] and the Borrower has
previously notified the Administrative Agent of its selection of, conversion to
or renewal of a LIBOR Rate Option and such Interest Rate Option has not yet
gone into effect, such notification shall be deemed to provide for selection
of, conversion to or renewal of the Base Rate Option otherwise available with
respect to such Loans.  If any Lender
notifies the Administrative Agent of a determination under Section 3.4.2
[Illegality; Increased Costs; Deposits Not Available], the Borrower shall,
subject to the Borrower’s indemnification Obligations under Section 4.9
[Indemnity], as to any Loan of the Lender to which a LIBOR Rate Option applies,
on the date specified in such notice either convert such Loan to the Base Rate
Option otherwise available with respect to such Loan or prepay such Loan in
accordance with Section 4.6 [Voluntary Prepayments].  Absent due notice from the Borrower of
conversion or prepayment, such Loan shall automatically be converted to the
Base Rate Option otherwise available with respect to such Loan upon such
specified date.

 

3.5                                 Selection of
Interest Rate Options.  If
the Borrower fails to select a new Interest Period to apply to any Borrowing
Tranche of Loans under the LIBOR Rate Option at the expiration of an existing
Interest Period applicable to such Borrowing Tranche in accordance with the
provisions of Section 3.2 [Interest Periods], the Borrower shall be deemed
to have converted such Borrowing Tranche to the Base Rate Option commencing
upon the last day of the existing Interest Period.

 

4.                                       PAYMENTS

 

4.1                                 Payments.  All payments and prepayments to be made in
respect of principal, interest, Facility Fees, Administrative Agent’s Fee or
other fees or amounts due from the Borrower hereunder shall be payable prior to
11:00 a.m. on the date when due without presentment, demand, protest or
notice of any kind, all of which are hereby expressly waived by the Borrower,
and without set-off, counterclaim or other deduction of any nature, and an
action therefor shall immediately accrue. 
Such payments shall be made to the Administrative Agent at the Principal
Office for the account of PNC for the ratable accounts of the Lenders with
respect to the Loans in U.S. Dollars and in immediately available funds, and
the Administrative Agent shall promptly distribute such amounts to the Lenders
in immediately available funds; provided that in the event payments are
received by 11:00 a.m. by the Administrative Agent with respect to the
Loans and such payments are not distributed to the Lenders on the same day
received by the Administrative Agent, the Administrative Agent shall pay the
Lenders the Federal Funds Effective Rate with respect to the amount of such
payments for each day held by the Administrative Agent and not distributed to
the Lenders.  The Administrative Agent’s
and each Lender’s statement of account, ledger or other relevant record shall,
in the absence of manifest error, be conclusive as the statement of the amount
of principal of and interest on the Loans and other amounts owing under this
Agreement and shall be deemed an “account stated.”

 

26

 

4.2                                 Pro Rata
Treatment of Lenders.  Each
borrowing shall be allocated to each Lender according to its Ratable Share, and
each selection of, conversion to or renewal of any Interest Rate Option and
each payment or prepayment by the Borrower with respect to principal, interest,
Facility Fees or other fees (except for the Administrative Agent’s Fee) or
amounts due from the Borrower hereunder to the Lenders with respect to the
Loans, shall (except as otherwise may be provided with respect to a Defaulting
Lender or a Delinquent Lender and except as provided in Section 3.4.3
[Administrative Agent’s and Lender’s Rights] in the case of an event specified
in Section 3.4 [LIBOR Rate Unascertainable; Etc.], 4.6.2 [Replacement of a
Lender] or 4.7 [Increased Costs]) be made in proportion to the applicable Loans
outstanding from each Lender and, if no such Loans are then outstanding, in
proportion to the Ratable Share of each Lender.

 

4.3                                 Sharing of
Payments by Lenders.  If any
Lender shall, by exercising any right of setoff, counterclaim or banker’s lien,
by receipt of voluntary payment, by realization upon security, or by any other
non-pro rata source, obtain payment in respect of any principal of or interest
on any of its Loans or other obligations hereunder resulting in such Lender’s
receiving payment of a proportion of the aggregate amount of its Loans and
accrued interest thereon or other such obligations greater than its Ratable
Share thereof as provided herein, then the Lender receiving such greater
proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase
(for cash at face value) participations in the Loans and such other obligations
of the other Lenders, or make such other adjustments as shall be equitable, so
that the benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on
their respective Loans and other amounts owing them, provided that:

 

(i)                                     if any such
participations are purchased and all or any portion of the payment giving rise
thereto is recovered, such participations shall be rescinded and the purchase
price restored to the extent of such recovery, together with interest or other
amounts, if any, required by Law (including court order) to be paid by the
Lender or the holder making such purchase; and

 

(ii)                                  the provisions
of this Section 4.3 shall not be construed to apply to (x) any
payment made by the Borrower pursuant to and in
accordance with the express terms of the Loan Documents or (y) any payment
obtained by a Lender as consideration for the assignment of or sale of a
participation in any of its Loans to any assignee or participant, other than to
the Borrower (as to which the provisions of this Section 4.3 shall apply).

 

The Borrower consents to the foregoing and agrees, to the extent it may
effectively do so under applicable Law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against the
Borrower rights of setoff and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of the Borrower in the amount
of such participation.

 

Notwithstanding anything
to the contrary contained in this Agreement or any of the other Loan Documents,
any Lender that fails at any time to comply with the provisions of this Section 4.3
with respect to purchasing participations from the other Lenders whereby such
Lender’s share of any payment received, whether by setoff or otherwise, is in
excess of its Ratable Share of such payments due and payable to all of the
Lenders, when and to the full extent required by the provisions of this
Agreement, shall be deemed delinquent (a “Delinquent  Lender”) and
shall be 

 

27

 

deemed a Delinquent
Lender until such time as each such delinquency and all of its obligations
hereunder are satisfied.  A Delinquent
Lender shall be deemed to have assigned any and all payments due to it from the
Borrower, whether on account of or relating to outstanding Loans, interest,
fees or otherwise, to the remaining nondelinquent Lenders for application to,
and reduction of, their respective Ratable Share of all outstanding Loans and
other unpaid Obligations of the Borrower. 
The Delinquent Lender hereby authorizes the Administrative Agent to
distribute such payments to the nondelinquent Lenders in proportion to their
respective Ratable Share of all outstanding Loans and other unpaid Obligations
of any of the Loan Parties.  A Delinquent
Lender shall be deemed to have satisfied in full a delinquency when and if, as
a result of application of the assigned payments to all outstanding Loans and other
unpaid Obligations of the Borrower to the nondelinquent Lenders, the Lenders’
respective Ratable Share of all outstanding Loans and unpaid Obligations have
returned to those in effect immediately prior to such delinquency and without
giving effect to the nonpayment causing such delinquency.

 

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

 

4.5                                 Interest
Payment Dates.  Interest on
Loans to which the Base Rate Option applies shall be due and payable in arrears
on each Payment Date.  Interest on Loans
to which the LIBOR Rate Option applies shall be due and payable on the last day
of each Interest Period for those Loans and, if such Interest Period is longer
than three (3) Months, also on the 90th day of such Interest Period.  Interest on the principal amount of each Loan
or other monetary Obligation shall be due and payable on demand after such principal
amount or other monetary Obligation becomes due and payable (whether on the
stated Expiration Date, upon acceleration or otherwise).

 

4.6                                 Voluntary Prepayments.

 

4.6.1                                           Right to
Prepay.  The Borrower shall have the
right at its option from time to time to prepay the Loans in whole or part
without premium or penalty (except as provided in Section 4.6.2
[Replacement of a Lender] below, in Section 4.7 [Increased Costs] and Section 4.9
[Indemnity]).  Whenever the Borrower
desires to prepay any part of the Loans, it shall provide a prepayment notice
to the Administrative Agent by 1:00 p.m. at least one (1) Business
Day prior to the date of prepayment of the Loans setting forth the following
information:

 

(x)                                   the date, which
shall be a Business Day, on which the proposed prepayment is to be made;

 

28

 

(y)                                 with respect to
any prepayment of any Loans subject to the LIBOR Rate Option, a statement
indicating the application of the prepayment between the LIBOR Rate Option
tranches; and

 

(z)                                   the total
principal amount of such prepayment, which shall not be less than the lesser
of the Revolving Facility Usage or $100,000.

 

All
prepayment notices shall be irrevocable. 
The principal amount of the Loans for which a prepayment notice is
given, together with interest on such principal amount except with respect to
Loans to which the Base Rate Option applies, shall be due and payable on the
date specified in such prepayment notice as the date on which the proposed
prepayment is to be made.  Except as
provided in Section 3.4.3 [Administrative Agent’s and Lender’s Rights], if
the Borrower prepays a Loan but fails to specify the applicable Borrowing
Tranche which the Borrower is prepaying, the prepayment shall be applied first to
Loans to which the Base Rate Option applies, then to Loans to which the LIBOR
Rate Option applies.  Any prepayment
hereunder shall be subject to the Borrower’s Obligation to indemnify the
Lenders under Section 4.9 [Indemnity].

 

4.6.2                                           Replacement of
a Lender.  In the event
any Lender (a) gives notice under Section 3.4 [LIBOR Rate
Unascertainable, Etc.], (b) requests compensation under Section 4.7
[Increased Costs], or requires the Borrower to pay any additional amount to any
Lender or any Official Body for the account of any Lender pursuant to Section 4.8
[Taxes], (c) is a Defaulting Lender, (d) becomes subject to the
control of an Official Body (other than normal and customary supervision), (e) is
a Non-Consenting Lender referred to in Section 10.1 [Modifications,
Amendments or Waivers or (f) does not fund any Loans because the making of
such Loans would contravene any Law applicable to the Lender, then in any such
event the Borrower may, at its sole expense, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in, and
consents required by, Section 10.8 [Successors and Assigns]), all of its
interests, rights and obligations under this Agreement and the related Loan
Documents to an assignee that shall assume such obligations (which assignee may
be another Lender, if a Lender accepts such assignment), provided that:

 

(i)                                     the Borrower
shall have paid to the Administrative Agent the assignment fee specified in Section 10.8
[Successors and Assigns];

 

(ii)                                  such Lender
shall have received payment of an amount equal to the outstanding principal of
its Loans accrued interest thereon, accrued fees and all other amounts payable
to it hereunder and under the other Loan Documents (including any amounts under
Section 4.9 [Indemnity]) from the assignee (to the extent of such
outstanding principal and accrued interest and fees) or the Borrower (in the
case of all other amounts);

 

(iii)                               in the case of any
such assignment resulting from a claim for compensation under Section 4.7.1
[Increased Costs Generally] or payments required to be made pursuant to Section 4.8
[Taxes], such assignment will result in a reduction in such compensation or
payments thereafter; and

 

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

 

29

 

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

 

4.7           Increased Costs.

 

4.7.1              Increased Costs Generally.  If any Change in Law shall:

 

(i)            impose, modify or deem
applicable any reserve, special deposit, compulsory loan, insurance charge or
similar requirement against assets of, deposits with or for the account of, or
credit extended or participated in by, any Lender (except any reserve
requirement reflected in the LIBOR Rate);

 

(ii)           subject any Lender to any
tax of any kind whatsoever with respect to this Agreement, any participation in
any Loan under the LIBOR Rate Option made by it, or change the basis of
taxation of payments to such Lender in respect thereof (except for Indemnified
Taxes or Other Taxes covered by Section 4.8 [Taxes] and the imposition of,
or any change in the rate or any change in the method of calculating or basis
of taxation of payments to such Lender with respect to any Excluded Tax payable
by such Lender); or

 

(iii)          impose on any Lender or the
London interbank market any other condition, cost or expense affecting this
Agreement or Loan under the LIBOR Rate Option 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 Loan under the LIBOR Rate Option (or of
maintaining its obligation to make any such Loan), or to reduce the amount of
any sum received or receivable by such Lender (whether of principal, interest
or any other amount) then, upon request of such Lender, the Borrower will pay
to such Lender such additional amount or amounts as will compensate such Lender
for such additional costs incurred or reduction suffered, provided that such
increased costs shall be determined by the Lender’s reasonable allocation of
the aggregate increased cost resulting from such events that is attributable to
this Agreement.

 

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

 

4.7.3              Certificates for Reimbursement;
Repayment of Outstanding Loans; Borrowing of New Loans.  A certificate of a Lender setting forth the
amount or amounts necessary to compensate such Lender or its holding company,
as the case may be, as specified in 

 

30

 

Sections 4.7.1 [Increased
Costs Generally] or 4.7.2 [Capital Requirements] and delivered to the Borrower
shall be conclusive absent manifest error. 
The Borrower shall pay such Lender the amount shown as due on any such
certificate within ten (10) days after receipt thereof.

 

4.7.4              Delay in Requests.  Failure or delay on the part of any Lender to
demand compensation pursuant to this Section shall not constitute a waiver
of such Lender’s right to demand such compensation, provided that the
Borrower shall not be required to compensate a Lender pursuant to this Section for
any increased costs incurred or reductions suffered more than nine months prior
to the date that such Lender, as the case may be, notifies the Borrower of the
Change in Law giving rise to such increased costs or reductions and of such
Lender’s intention to claim compensation therefor (except that, if the Change
in Law giving rise to such increased costs or reductions is retroactive, then
the nine (9) month period referred to above shall be extended to include
the period of retroactive effect thereof).

 

4.8           Taxes.

 

4.8.1              Payments Free of Taxes.  Any and all payments by or on account of any
obligation of the Borrower hereunder or under any other Loan Document shall be
made free and clear of and without reduction or withholding for any Indemnified
Taxes or Other Taxes; provided that if the Borrower shall be required by
applicable Law to deduct any Indemnified Taxes (including any Other Taxes) from
such payments, then (i) the sum payable shall be increased as necessary so
that after making all required deductions (including deductions applicable to
additional sums payable under this Section) the Administrative Agent or Lender,
as the case may be, receives an amount equal to the sum it would have received
had no such deductions been made, (ii) the Borrower shall make such
deductions and (iii) the Borrower shall timely pay the full amount
deducted to the relevant Official Body in accordance with applicable Law.

 

4.8.2              Payment of Other Taxes by
the Borrower.  Without
limiting the provisions of Section 4.8.1 [Payments Free of Taxes] above,
the Borrower shall timely pay any Other Taxes to the relevant Official Body in
accordance with applicable Law.

 

4.8.3              Indemnification by the
Borrower.  The Borrower
shall indemnify the Administrative Agent, each Lender, within ten (10) days
after demand therefor, for the full amount of any Indemnified Taxes or Other
Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) paid by the Administrative
Agent, such Lender, as the case may be, and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, whether or not
such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Official Body, provided that the Administrative Agent
and Lender, as the case may be, shall have provided the Borrower with evidence
of payment of such amounts.  A
certificate as to the amount of such payment or liability delivered to the
Borrower by a Lender (with a copy to the Administrative Agent), or by the
Administrative Agent on its own behalf or on behalf of a Lender, shall be
conclusive absent manifest error.

 

4.8.4              Evidence of Payments.  As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by the Borrower to a Official Body, the
Borrower shall 

 

31

 

deliver to the
Administrative Agent the original or a certified copy of a receipt issued by
such Official Body evidencing such payment, a copy of the return reporting such
payment or other evidence of such payment reasonably satisfactory to the
Administrative Agent.

 

4.8.5              Status of Lenders.  Any Foreign Lender that is entitled to an
exemption from or reduction of withholding tax under the Law of the
jurisdiction in which the Borrower is resident for tax purposes, or any treaty
to which such jurisdiction is a party, with respect to payments hereunder or
under any other Loan Document shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable Law or
reasonably requested by the 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 of
withholding.  Notwithstanding the
submission of such documentation claiming a reduced rate of or exemption from
U.S. withholding tax, the Administrative Agent shall be entitled to withhold
United States federal income taxes at the full 30% withholding rate if in its
reasonable judgment it is required to do so under the due diligence
requirements imposed upon a withholding agent under § 1.1441-7(b) of the
United States Income Tax Regulations. 
Further, the Administrative Agent is indemnified under § 1.1461-1(e) of
the United States Income Tax Regulations against any claims and demands of any
Lender or assignee or participant of a Lender for the amount of any tax it
deducts and withholds in accordance with regulations under § 1441 of the
Internal Revenue Code.  In addition, any
Lender, if requested by the Borrower or the Administrative Agent, shall deliver
such other documentation prescribed by applicable Law or reasonably requested
by the Borrower or the Administrative Agent as will enable the Borrower or the
Administrative Agent to determine whether or not such Lender is subject to
backup withholding or information reporting requirements.

 

Without limiting the generality of the
foregoing, each Lender shall deliver to the Borrower and the Administrative
Agent (in such number of copies as shall be requested by the recipient) on or
prior to the date on which such Lender becomes a Lender under this Agreement
and upon a Change in Law or circumstances requiring or making appropriate a new
or additional form, certificate or documentation, and upon or before the
expiration, obsolescence or invalidity of any documentation previously provided
(and from time to time thereafter upon the request of the Borrower or the
Administrative Agent, but only if such Lender is legally entitled to do so),
the following properly completed and duly executed documents that are
applicable to such Lender:

 

(i)            two (2) duly completed
valid originals of IRS Form W-8BEN claiming eligibility for benefits of an
income tax treaty to which the United States of America is a party,

 

(ii)           two (2) duly completed
valid originals of IRS Form W-8ECI,

 

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

 

32

 

(iv)          two (2) duly completed,
valid originals of a W-9 or any other form prescribed by applicable Law
demonstrating that such Lender is not a Foreign Lender, or

 

(v)           any other form prescribed by
applicable Law as a basis for claiming exemption from or a reduction in United
States 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.

 

4.8.6              Refunds.  If the Administrative Agent or any Lender, in
its sole opinion, determines that it has finally and irrevocably received or
been granted a refund in respect of any Taxes paid as to which indemnification
has been paid by the Borrower pursuant to this Section, it shall promptly remit
such refund, net of all reasonable out of pocket costs and expenses; provided,
that the Borrower agrees to promptly return any such refund to the
Administrative Agent or such Lender, as applicable, if such person is required
to repay such refund to the relevant taxing authority.  The Administrative Agent or any such Lender
shall provide the Borrower with a copy of any notice of assessment from the
relevant taxing authority (redacting any unrelated confidential information
contained therein) requiring repayment of such refund.  Nothing contained herein shall impose an
obligation on the Administrative Agent or any Lender to apply for any such
refund.

 

4.9           Indemnity.  In addition to the compensation or payments
required by Section 4.7 [Increased Costs]or Section 4.8 [Taxes],
except to the extent of a Lender’s gross negligence or willful misconduct, the
Borrower shall indemnify each Lender against all liabilities, losses or
expenses (including loss of margin, any loss or expense incurred in liquidating
or employing deposits from third parties and any loss or expense incurred in
connection with funds acquired by a Lender to fund or maintain Loans subject to
a LIBOR Rate Option) which such Lender sustains or incurs as a consequence of
any:

 

(i)            payment, prepayment,
conversion or renewal of any Loan to which a LIBOR Rate Option applies on a day
other than the last day of the corresponding Interest Period (whether or not
such payment or prepayment is mandatory, voluntary or automatic and whether or
not such payment or prepayment is then due),

 

(ii)           attempt by the Borrower to
revoke (expressly, by later inconsistent notices or otherwise) in whole or part
any Loan Requests under Section 2.4 [Revolving Credit Loan Requests] or Section 3.2
[Interest Periods] or notice relating to prepayments under Section 4.6
[Voluntary Prepayments],

 

(iii)          the assignment of any Loan
to which a LIBOR Rate Option applies other than on the last day of the Interest
Period applicable thereto as a result of a request by the Borrower pursuant to Section 4.6.2
[Replacement of a Lender], or

 

(iv)          default by the Borrower in
the performance or observance of any covenant or condition contained in this
Agreement or any other Loan Document, including any failure of the Borrower to
pay when due (by acceleration or otherwise) any principal, interest, Facility
Fee or any other amount due hereunder.

 

33

 

If any Lender sustains or incurs any such
loss or expense, it shall from time to time notify the Borrower of the amount
determined in good faith by such Lender (which determination may include such
assumptions, allocations of costs and expenses and averaging or attribution
methods as such Lender shall deem reasonable) to be necessary to indemnify such
Lender for such loss or expense.  Such
notice shall set forth in reasonable detail the basis for such
determination.  Such amount shall be due
and payable by the Borrower to such Lender ten (10) Business Days after
such notice is given.

 

5.             REPRESENTATIONS AND WARRANTIES

 

5.1           Representations and
Warranties.  the Borrower represents and
warrants to the Administrative Agent and each of the Lenders as follows:

 

5.1.1              Corporate Status.  Each of the Borrower and its Subsidiaries (a) is a duly organized or formed and validly
existing corporation, partnership or limited liability company, as the case may
be, in good standing under the laws of the jurisdiction of its formation and
has the corporate, partnership or limited liability company power and
authority, as applicable, to own its Property and assets and to transact the
business in which it is engaged, and (b) has
been duly qualified and is authorized to do business in all jurisdictions where
it is required to be so qualified except where the failure to be so qualified
would not have a Material Adverse Effect. 
Each Subsidiary of the Borrower (and the direct and indirect ownership
interest of the Borrower therein) as of the date hereof and the jurisdiction of
incorporation of Borrower and each such Subsidiary as of the date hereof is
listed on Schedule 5.1.1.

 

5.1.2              Corporate Power and
Authority.  The Borrower
has the corporate or other organizational power and authority to execute,
deliver and carry out the terms and provisions of the Loan Documents to which
it is party and has taken all necessary corporate or other organizational
action to authorize the execution, delivery and performance of the Loan
Documents to which it is party.  The
Borrower has duly executed and delivered each Loan Document to which it is
party and each Loan Document to which it is party constitutes the legal, valid
and binding agreement or obligation of the Borrower enforceable in accordance
with its terms, except to the extent that the enforceability thereof may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws generally affecting creditors’ rights and by equitable
principles (regardless of whether enforcement is sought in equity or at law).

 

5.1.3              No Violation.  Neither the execution, delivery and
performance by the Borrower of the Loan Documents to which it is party nor
compliance with the terms and provisions thereof (a) will
contravene any provision of any law, statute, rule, regulation, order, writ,
injunction or decree of any Official Body applicable to the Borrower or its
properties and assets, (b) will conflict with
or result in any breach of, any of the terms, covenants, conditions or
provisions of, or constitute a default under, or result in the creation or imposition
of (or the obligation to create or impose) any Lien upon any of the Property or
assets of the Borrower pursuant to the terms of any material promissory note,
bond, debenture, indenture, mortgage, deed of trust, credit or loan agreement,
or any other agreement or other instrument, to which the Borrower is a party or
by which it or any of its Property or assets are bound or to which it may be 

 

34

 

subject, or (c) will violate any provision of the certificate or
articles of incorporation, regulations or bylaws, or other charter documents of
the Borrower.

 

5.1.4              Governmental Approvals.  No order, consent, approval, license,
authorization, or validation of, or filing, recording or registration with, or
exemption by, any Official Body is required in connection with (i) any
extension of credit hereunder when made, (ii) the execution, delivery and
performance by the Borrower of any Loan Document to which it is a party or (iii) the
legality, validity, binding effect or enforceability of any Loan Document to
which the Borrower is a party, except for orders, consents, approvals,
licenses, authorizations, validations, filings, recordings, registrations
and/or exemptions required with respect items (i) or (ii) of this Section that
have been obtained or made and are in full force and effect at the time of such
extension of credit.

 

5.1.5              Litigation.

 

(i)            There are no actions, suits or proceedings pending or,
to, the knowledge of the Borrower, threatened with respect to the Borrower or
any of its Subsidiaries (a) that have, or could reasonably be expected to
have, a Material Adverse Effect except as set forth on Schedule 5.1.5,
or (b) that question the validity or enforceability of any of the Loan
Documents, or of any action to be taken by any of the Borrower pursuant to any
of the Loan Documents.

 

(ii)           No action, suit, proceeding or investigation has been
instituted, or to the knowledge of the Borrower or any of its Subsidiaries,
threatened, and no rule, regulation, order, judgment or decree has been issued
or proposed to be issued by any Official Body that, solely as a result of the
incurrence of Indebtedness or the entering into this Agreement or any other
Loan Document or any transaction contemplated hereby or thereby, would cause or
deem the Administrative Agent or the Lenders or any Affiliate of any of them to
be subject to, or not exempted from, regulation under the FPA.

 

5.1.6              Use of Proceeds; Margin
Regulations.

 

(i)            The proceeds of all Loans will be utilized to provide
working capital and funds for general corporate and other lawful purposes not
inconsistent with the requirements of this Agreement (including, without
limitation, to provide backup liquidity).

 

(ii)           The Borrower is not engaged in the business of extending
credit for the purpose, immediately, incidentally or ultimately, of purchasing
or carrying margin stock (within the meaning of Regulation U, T or X as
promulgated by the Board of Governors of the Federal Reserve System).  No part of the proceeds of any Loan has been
or will be used, immediately, incidentally or ultimately, to purchase or carry
any margin stock or to extend credit to others for the purpose of purchasing or
carrying any margin stock or which is inconsistent with the provisions of the regulations
of the Board of Governors of the Federal Reserve System.  The Borrower does not hold margin stock in
such amounts that more than 25% of the reasonable value of the assets of the
Borrower is or will be represented by margin stock.

 

5.1.7              Financial Statements.  The Borrower has furnished to the Lenders and
the Administrative Agent complete and correct copies of  the
audited consolidated balance sheets 

 

35

 

of the Borrower and its
consolidated Subsidiaries as of December 31, 2008 and the related audited
consolidated statements of income, shareholders’ equity, and cash flows of the
Borrower and its consolidated Subsidiaries for such fiscal year, accompanied by
the report thereon of KPMG LLP.  All such
financial statements have been prepared in accordance with GAAP, consistently
applied (except as stated therein), and fairly present in all material respects
the financial position of the entities described in such financial statements
as of the respective dates indicated and the consolidated results of their
operations and cash flows for the respective periods indicated, subject in the
case of any such financial statements that are unaudited, to normal audit
adjustments, none of which shall be material. 
As of the Closing Date, the Borrower and its Subsidiaries do not have
any material or significant contingent liability (other than any liability
incident to any litigation, arbitration or proceeding that could not reasonably
be expected to have a Material Adverse Effect) that is not reflected in the
foregoing financial statements or the notes thereto in accordance with GAAP.

 

5.1.8              Material Adverse Effect.  At no time during the period from December 31,
2008 through the date of this Agreement has there been a change in the
financial or other condition, business, affairs or prospects of the Borrower
and its Subsidiaries taken as a whole, or their properties and assets
considered as an entirety, except for  changes none
of which, individually or in the aggregate, has had or could reasonably be
expected to have, a Material Adverse Effect.

 

5.1.9              Taxes.  The Borrower and each of its Subsidiaries has
filed all federal income tax returns and all other material tax returns,
domestic and foreign, required to be filed by it and has paid all material
taxes and assessments payable by it that have become due, other than those not
yet delinquent and except for those contested in good faith.  The Borrower and each of its Subsidiaries has
established on its books such charges, accruals and reserves in respect of
taxes, assessments, fees and other governmental charges for all fiscal periods
as are required by GAAP.  The Borrower
does not know of any proposed assessment for additional federal, foreign or
state taxes for any period, or of any basis therefor, that, individually or in
the aggregate, taking into account such charges, accruals and reserves in
respect thereof as the Borrower and its Subsidiaries have made, could
reasonably be expected to have a Material Adverse Effect.

 

5.1.10            Title to Property.  The Borrower and each of its Subsidiaries has
good and marketable title, in the case of Real Property, and good title (or
valid Leaseholds, in the case of any leased Property), in the case of all other
Property, to all of its material properties and assets free and clear of Liens
other than Liens permitted under Section 7.2.2 [Liens].  The interests of the Borrower and each of its
Subsidiaries in the properties reflected in the most recent balance sheet
referred to in Section 5.1.7 [Financial Statements], taken as a whole,
were sufficient, in the judgment of the Borrower, as of the date of such
balance sheet for purposes of the ownership and operation of the businesses
conducted by the Borrower and such Subsidiaries.

 

5.1.11            Insurance.  The properties of the Borrower and each of
its Subsidiaries are insured pursuant to policies and other bonds which are
valid and in full force and effect and which provide adequate coverage from
reputable and financially sound insurers in amounts sufficient to insure the
assets and risks of the Borrower and each such Subsidiary in accordance with
prudent business practice in the industry of such Borrower and Subsidiaries.

 

36

 

5.1.12            ERISA Compliance.   (i) As of the Closing Date, there are no
Unfunded Liabilities which would result in a Material Adverse Effect.  Each Plan complies in all material respects
with all applicable requirements of law and regulations, no Reportable Event
has occurred with respect to any Plan, neither the Borrower nor any other
member of the Controlled Group has withdrawn from any Plan or initiated steps
to do so, and no steps have been taken to reorganize or terminate any Plan.

 

(ii)           Neither the Borrower nor any
of its Subsidiaries is an entity deemed to hold “plan assets” within the
meaning of 29 C.F.R. § 2510.3-101 of an employee benefit plan (as defined in Section 3(3) of
ERISA) which is subject to Title I of ERISA or any plan (within the meaning of Section 4975
of the Code), and neither the execution of this Agreement nor the making of
Loans hereunder gives rise to a prohibited transaction within the meaning of Section 406
of ERISA or Section 4975 of the Code.

 

5.1.13            Environmental Matters.  The Borrower and each of its Subsidiaries is
in compliance with all Environmental Laws governing its business, except to the
extent that any such failure to comply (together with any resulting penalties,
fines or forfeitures) would not reasonably be expected to have a Material
Adverse Effect.  All licenses, permits,
registrations or approvals required for the conduct of the business of the
Borrower and each of its Subsidiaries under any Environmental Law have been
secured and the Borrower and each of its Subsidiaries is in substantial compliance
therewith, except for such licenses, permits, registrations or approvals the
failure to secure or to comply therewith is not reasonably likely to have a
Material Adverse Effect.  Neither the
Borrower nor any of its Subsidiaries has received written notice, or otherwise
knows, that it is in any respect in noncompliance with, breach of or default
under any applicable writ, order, judgment, injunction, or decree to which the
Borrower or such Subsidiary is a party or that would affect the ability of the
Borrower or such Subsidiary to operate any Real Property and no event has
occurred and is continuing that, with the passage of time or the giving of
notice or both, would constitute noncompliance, breach of or default
thereunder, except in each such case, such noncompliance, breaches or defaults
as would not reasonably be expected to, in the aggregate, have a Material
Adverse Effect.  There are no
Environmental Claims pending or, to the best knowledge of the Borrower, threatened
wherein an unfavorable decision, ruling or finding would reasonably be expected
to have a Material Adverse Effect.  There
are no facts, circumstances, conditions or occurrences on any Real Property now
or at any time owned, leased or operated by the Borrower or any of its
Subsidiaries or on any Property adjacent to any such Real Property, that are
known by the Borrower or as to which the Borrower or any such Subsidiary has
received written notice, that could reasonably be expected:  (i) to form
the basis of an Environmental Claim against the Borrower or any of its
Subsidiaries or any Real Property of the Borrower or any of its Subsidiaries;
or (ii) to cause such Real Property to be
subject to any restrictions on the ownership, occupancy, use or transferability
of such Real Property under any Environmental Law, except in each such case,
such Environmental Claims or restrictions that individually or in the aggregate
would not reasonably be expected to have a Material Adverse Effect.

 

5.1.14            Solvency.  The Borrower is not insolvent as defined in
any applicable state or federal statute, nor will the Borrower be rendered
insolvent by the execution and delivery of this Agreement or any of the Loan
Documents to the Administrative Agent and the Lenders.

 

37

 

5.1.15            Lawful Operation; Compliance
with Laws.  The Borrower
and each of its Subsidiaries:  (a) holds
all necessary federal, state and local governmental licenses, registrations,
certifications, permits and authorizations necessary to conduct its business; (b) is in full compliance with all material
requirements imposed by law, regulation or rule, whether federal, state or
local, that are applicable to it, its operations, or its properties and assets,
including without limitation, applicable requirements of Environmental Laws;
and (c) is in full compliance with all material terms, covenants and
conditions of any promissory note, bond, debenture, indenture, mortgage, deed
of trust, credit or loan agreement, or any other agreement or other instrument,
to which it is a party or by which it or any of its Property or assets are
bound or to which it may be subject, except in the case of clause (a), (b) or
(c) of this Section 5.1.15 for any failure to obtain and maintain in
effect, or noncompliance, that, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.

 

5.1.16            Intellectual Property.  The Borrower and each of its Subsidiaries has
obtained or has the right to use all material patents, trademarks, service marks,
trade names, copyrights, licenses and other rights with respect to the
foregoing necessary for the present and planned future conduct of its business,
without any known conflict with the rights of others, except for such patents,
trademarks, service marks, trade names, copyrights, licenses and rights, the
loss of which, and such conflicts, that in any such case individually or in the
aggregate would not reasonably be expected to have a Material Adverse Effect.

 

5.1.17            Investment Company Act;
Federal Power Act.  None of the Borrower or any of its Subsidiaries is
subject to regulation with respect to the creation or incurrence of
Indebtedness under the Investment Company Act of 1940, as amended.  None of the Borrower or any of its
Subsidiaries, or any Affiliate of any of them, is subject to regulation under the FPA or under applicable state or
other laws and regulations respecting the rates or the financial or
organizational regulation of electric utilities, as a result of the creation or incurrence of the Obligations or
the entering into this Agreement or any other Loan Document or the consummation
of any transaction contemplated hereby or thereby.

 

5.1.18            Employment Matters. The Borrower
is in compliance with all employment agreements, employment contracts,
collective bargaining agreements and other agreements among any Loan Party and
its employees (collectively, “Labor Contracts”)
and all applicable federal, state and local labor and employment Laws including
those related to equal employment opportunity and affirmative action, labor
relations, minimum wage, overtime, child labor, medical insurance continuation,
worker adjustment and retraining notices, immigration controls and worker and
unemployment compensation, where the failure to comply would constitute a
Material Adverse Effect.  There are no
outstanding grievances, arbitration awards or appeals therefrom arising out of
the Labor Contracts or current or threatened strikes, picketing, handbilling or
other work stoppages or slowdowns at facilities of the Borrower which in
any case would constitute a Material Adverse Effect.

 

5.1.19            Full Disclosure.  All factual information (other than financial
projections and information of a general economic nature or industry nature)
(taken as a whole) heretofore or contemporaneously furnished by or on behalf of
the Borrower or any of its Subsidiaries in writing to the Administrative Agent
or any Lender for purposes of or in connection with this Agreement or any
transaction contemplated herein is, and all other such factual information 

 

38

 

(taken as a whole) hereafter
furnished by or on behalf of such Person in writing to any Lender will be, true
and accurate in all material respects on the date as of which such information
is dated or certified and not incomplete by omitting to state any material fact
necessary to make such information (taken as a whole) not misleading at such
time in light of the circumstances under which such information was provided,
except that any such future information consisting of pro forma information and
financial projections prepared by the Borrower is only represented herein as
being based on good faith estimates and assumptions believed by such Persons to
be reasonable at the time made, it being recognized by the Lenders that such
projections as to future events are not to be viewed as facts and that actual
results during the period or periods covered by any such projections may differ
materially from the projected results.

 

6.             CONDITIONS OF LENDING

 

The obligation of each Lender to make Loans
hereunder is subject to the performance by the Borrower of its Obligations to
be performed hereunder at or prior to the making of any such Loans and to the
satisfaction of the following further conditions:

 

6.1           Closing.

 

6.1.1              Deliveries.  On the Closing Date, the Administrative Agent
shall have received each of the following in form and substance satisfactory to
the Administrative Agent:

 

(i)            A certificate of the
Borrower signed by an Authorized Officer, dated the Closing Date stating that
the Borrower is in material compliance with its representations, warranties,
covenants and conditions hereunder and no Event of Default or Potential Default
exists and no Material Adverse Effect has occurred and no material litigation
that has or could reasonably be expected to cause a Material Adverse Effect
exists since the date of the last audited financial statements of the Borrower
delivered to the Administrative Agent.

 

(ii)           A certificate dated the
Closing Date and signed by the Secretary or an Assistant Secretary of the
Borrower, certifying as appropriate as to: (a) all action taken by the
Borrower in connection with this Agreement and the other Loan Documents; (b) the
names of the Authorized Officers authorized to sign the Loan Documents and
their true signatures; and (c) copies of its organizational documents as
in effect on the Closing Date certified by the appropriate state official where
such documents are filed in a state office together with certificates from the
appropriate state officials as to the continued existence and good standing of
the Borrower in each state where organized or qualified to do business.

 

(iii)          This Agreement and each of
the other Loan Documents signed by an Authorized Officer.

 

(iv)          Written opinion(s) of
counsel for the Borrower, dated the Closing Date and as to the matters set
forth in Schedule 6.1.1.

 

(v)           [Intentionally Omitted].

 

(vi)          All material consents
required to effectuate the transactions contemplated hereby.

 

39

 

(vii)         A Lien search in acceptable
scope and with acceptable results.

 

(viii)        The Chief Executive Officer,
President or Chief Financial Officer of the Borrower, acting in their
capacities as such officers, shall have delivered a certificate in substantially
the form attached hereto as Exhibit 6.1.1 to the Administrative
Agent as to the capital adequacy and solvency of the Borrower after giving
effect to the transactions contemplated hereby.

 

(ix)           Such other documents in
connection with such transactions as the Administrative Agent or said counsel
may reasonably request.

 

6.1.2        Payment of Fees.  The Borrower shall have paid all fees payable
on or before the Closing Date.

 

6.2           Each Loan.  At the time of making any Loans and after
giving effect to the proposed extensions of credit:  the representations, warranties and covenants
of the Borrower shall then be true in all material respects and no Event of
Default or Potential Default shall have occurred and be continuing; the making
of the Loans shall not contravene any Law applicable to the Borrower or any of
its Subsidiaries or any of the Lenders; and the Borrower shall have delivered
to the Administrative Agent a duly executed and completed Loan Request.

 

7.             COVENANTS

 

The Borrower covenants and agrees that until
Payment in Full, the Borrower shall comply at all times with the following
covenants:

 

7.1           Affirmative Covenants.

 

7.1.1              Books, Records and Inspections. 
The Borrower will, and will cause each of its Subsidiaries to, (a) keep proper books of record and account, in
which full and correct entries shall be made of all financial transactions and
the assets and business of the Borrower or such Subsidiaries, as the case may
be, in accordance with GAAP; and (b) permit,
upon at least two Business Days’ notice to the Chief Financial Officer of the
Borrower, officers and designated representatives of the Administrative Agent
or any of the Lenders to visit and inspect any of the properties or assets of
the Borrower and any of its Subsidiaries in whomsoever’s possession (but only
to the extent the Borrower or such Subsidiary has the right to do so to the
extent in the possession of another Person), to examine the books of account of
the Borrower and any of its Subsidiaries, and make copies thereof and take
extracts therefrom, and to discuss the affairs, finances and accounts of the
Borrower and of any of its Subsidiaries with, and be advised as to the same by,
its and their officers and independent accountants and independent actuaries,
if any, all at such reasonable times and intervals and to such reasonable
extent as the Administrative Agent or any of the Lenders may request during
normal business hours; provided that unless an Event of Default shall have
occurred and be continuing, only one (1) visit shall be permitted during
any calendar year.  All costs and
expenses incurred by the Administrative Agent or any Lender in connection with
any of the foregoing shall be paid by the Administrative Agent or such Lender,
as the case may be, unless an Event of Default shall have occurred and be
continuing at the time such costs and/or expenses are incurred, in which case
all such costs and expenses shall be paid by the Borrower.  In the event any Lender desires to visit and
inspect the 

 

40

 

Borrower or any of its
Subsidiaries, such Lender shall make a reasonable effort to conduct such visit
and inspection contemporaneously with any visit and inspection to be performed
by the Administrative Agent.  Notwithstanding
anything to the contrary in this Section 7.1.1., none of the Borrower or
any of its Subsidiaries will be required to disclose, permit the inspection,
examination or making copies or abstracts of, or discussion of, any document, information or
other matter that (i) constitutes non-financial trade secrets or
non-financial proprietary information, (ii) in respect of which disclosure
to the Administrative Agent (or its representatives) or any Lender (or its
representatives) is prohibited by Law or (iii) is subject to attorney-client
or similar privilege or constitutes attorney work product.

 

7.1.2              Insurance.  The Borrower will, and will cause each of its
Subsidiaries to, (i) maintain insurance
coverage by such insurers and in such forms and amounts and against such risks
as are generally consistent with the insurance coverage maintained by the
Borrower and its Subsidiaries at the date hereof, and (ii) forthwith
upon any Lender’s written request, furnish to such Lender such information
about such insurance as such Lender may from time to time reasonably request,
which information shall be prepared in form and detail satisfactory to such
Lender and certified by an Authorized Officer.

 

7.1.3              Payment of Taxes and Claims.  The Borrower will pay and discharge, and will
cause each of its Subsidiaries to pay and discharge, all taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits,
or upon any properties belonging to it, prior to the date on which penalties
attach thereto, and all lawful claims that, if unpaid, might become a Lien or
charge upon any properties of the Borrower or any of its Subsidiaries; provided that neither the Borrower nor any of its
Subsidiaries shall be required to pay any such tax, assessment, charge, levy or
claim that is being contested in good faith and by proper proceedings if it has
maintained adequate reserves with respect thereto in accordance with GAAP.  Without limiting the generality of the
foregoing, the Borrower will, and will cause each of its Subsidiaries to, pay
in full all of its wage obligations to its employees in accordance with the
Fair Labor Standards Act (29 U.S.C. Sections 206-207) and any comparable
provisions of applicable law.

 

7.1.4              Preservation of Existence,
etc.  The Borrower will, and will
cause each of its Subsidiaries to, (a) preserve, renew and maintain in
full force and effect its legal existence and good standing under the laws of
the jurisdiction of its organization except in a transaction permitted by Section 7.2.3
[Merger, Consolidation, Asset Sales]; (b) take all reasonable action to
maintain all rights, privileges, permits, licenses and franchises necessary or
desirable in the normal conduct of its business, except to the extent that
failure to do so could not reasonably be expected to have a Material Adverse
Effect; and (c) preserve or renew all of its registered patents,
trademarks, trade names and service marks, the non-preservation of which could
reasonably be expected to have a Material Adverse Effect.

 

7.1.5              Good Repair.  The Borrower will, and will cause each of its
Subsidiaries to, ensure that its material properties and equipment used or
useful in its business in whomsoever’s possession they may be, are kept in good
repair, working order and condition, normal wear and tear excepted, and that
from time to time there are made in such properties and equipment all needful
and proper repairs, renewals, replacements, extensions, additions, 

 

41

 

betterments and
improvements, thereto, to the extent and in the manner customary for companies
in similar businesses.

 

7.1.6              Compliance with Statutes,
Regulations, Orders, Restrictions.  The Borrower will, and will cause each of its
Subsidiaries to, comply, in all material respects, with all applicable
statutes, regulations and orders of, and all applicable restrictions imposed
by, any Official Body, in respect of the conduct of its business and the
ownership of its Property, including, without limitation, ERISA and all
applicable Environmental Laws other than those the noncompliance with which
would not have, and that would not be reasonably expected to have, a Material
Adverse Effect.

 

7.1.7              Use of Proceeds.  The Borrower will, and will cause each of its
Subsidiaries to use the proceeds of all Loans for working capital and for
general corporate and other lawful purposes not inconsistent with the
requirements of this Agreement (including, without limitation, to provide
backup liquidity).

 

7.1.8              Senior Debt.  The Borrower will at all times ensure that (a) the claims of the Lenders in respect of the
Obligations of the Borrower will not be subordinate to, and will in all
respects rank at least pari passu with
or senior to, the claims of every unsecured creditor of the Borrower, and (b) any Indebtedness of the Borrower that is
subordinated in any manner to the claims of any other creditor of the Borrower
will be subordinated in like manner to such claims of the Lenders.

 

7.1.9              Anti-Terrorism Laws.  The Borrower is not nor shall be (i) a
Person with whom any Lender is restricted from doing business under Executive
Order No. 13224 or any other Anti-Terrorism Law, (ii) engaged in any
business involved in making or receiving any contribution of funds, goods or
services to or for the benefit of such a Person or in any transaction that
evades or avoids, or has the purpose of evading or avoiding, the prohibitions
set forth in any Anti-Terrorism Law, or (iii) otherwise in violation of
any Anti-Terrorism Law.  The Borrower
shall provide to the Lenders any certifications or information that a Lender
requests to confirm compliance by the Borrower with Anti-Terrorism Laws.

 

7.2           Negative Covenants.

 

7.2.1              Changes in Business.  Neither the Borrower nor any of its
Subsidiaries will engage in any business if, as a result, the general nature of
the business, taken on a consolidated basis, that would then be engaged in by
the Borrower and its Subsidiaries, would be substantially changed from the
general nature of the business engaged in by the Borrower and its Subsidiaries
on the Closing Date.

 

7.2.2              Liens.  The Borrower will not, and will not permit
any of its Subsidiaries to, create, incur, assume or suffer to exist any Lien
upon or with respect to any Property or assets of any kind (real or personal,
tangible or intangible) of the Borrower or any such Subsidiary whether now
owned or hereafter acquired, or sell any such Property or assets subject to an
understanding or agreement, contingent or otherwise, to repurchase such
Property or assets (including, without limitation, sales of accounts receivable
or notes with or without recourse to the Borrower or any of its Subsidiaries,
other than for purposes of collection of 

 

42

 

delinquent accounts in the
ordinary course of business) or assign any right to receive income, or file or
permit the filing of any financing statement under the UCC or any other similar
notice of Lien under any similar recording or notice statute, except that the
foregoing restrictions shall not apply to:

 

(i)            the Standard Permitted
Liens;

 

(ii)           Liens (1) in
existence on the Closing Date that are listed, and the Indebtedness secured
thereby and the Property subject thereto on the Closing Date described, on Schedule 7.2.2,
or (2) arising out of the refinancing, extension,
renewal or refunding of any Indebtedness secured by any such Liens, provided that the principal amount of such Indebtedness is
not increased and such Indebtedness is not secured by any additional assets;

 

(iii)          Liens on Property of the
Borrower securing the Borrower’s First Mortgage Bonds issued pursuant to the
Indenture, dated as of October 1, 1935, as amended, supplemented or
otherwise modified from time to time, between the Borrower and The Bank of New
York Mellon (or its predecessors or successors);

 

(iv)          Liens on Property of the
Borrower in connection with collateralized pollution control bonds;

 

(v)           any (1) Lien  existing on any Property at the time such Property is
acquired by the Borrower or any of its Subsidiaries or on any Property of any
Person at the time such Person becomes, or is merged into, a Subsidiary of the
Borrower, provided that (A) such
Lien is not created in contemplation of or in connection with such acquisition
or such Person becoming, or being merged into, such Subsidiary, as the case may
be, (B) such Lien shall not attach or apply to
any other Property or assets of the Borrower or any of its Subsidiaries, and (C) such Lien shall secure only those
obligations that it secures on the date of such acquisition or the date such
Person becomes, or is merged into, such Subsidiary, as the case may be, and any
extension or refinancing thereof, so long as the aggregate principal amount so
extended or refinanced is not increased, and (2) Lien securing
Indebtedness in respect of purchase money obligations for the acquisition,
lease, construction or improvement of fixed assets or Capital Lease
Obligations, provided that (A) such Lien
only attaches to such fixed assets being acquired, leased, constructed or
improved and (B) the Indebtedness secured by such Lien does not exceed the
cost or fair market value, whichever is lower, of the fixed assets being
acquired, leased, constructed or improved on the date of acquisition, lease,
construction or improvement; provided, however,
that the aggregate principal amount of Indebtedness at any time outstanding
secured by a Lien described in this subsection (v) shall not exceed an
amount equal to 5% of the Consolidated Tangible Assets at such time.

 

7.2.3              Merger, Consolidation, Asset
Sales.  The Borrower will not, and
will not permit any of its Subsidiaries to, (a) wind up, liquidate or
dissolve its affairs, (b) enter into any transaction of merger or
consolidation, (c) make or otherwise effect any Asset Sale, or (d) agree
to do any of the foregoing at any future time, except that the following shall
be permitted:

 

(i)            a Subsidiary of the Borrower may merge with the
Borrower, provided that the surviving Person in any such merger shall be the
Borrower;

 

43

 

(ii)           any Subsidiary of the Borrower may merge with
another Subsidiary of the Borrower;

 

(iii)          any Subsidiary of the Borrower may merge with any
Person (other than the Borrower or any other Subsidiary of the Borrower),
provided that (A) the surviving Person in any such merger shall be such
Subsidiary and (B) immediately before and after such merger there shall
not exist any Potential Default or Event of Default;

 

(iv)          the Borrower may merge with any Person (other than a
Subsidiary of the Borrower), provided that (A) the surviving Person in any
such merger shall be the Borrower and (B) immediately before and after
such merger there shall not exist any Potential Default or Event of Default;

 

(v)           any Subsidiary of the Borrower may make or effect
any Asset Sale to the Borrower or another Wholly-Owned Subsidiary of the
Borrower;

 

(vi)          the Borrower may wind up, voluntarily liquidate or
dissolve any Subsidiary if (A) such Subsidiary is not a “Significant
Subsidiary” (as defined in Rule 1-02 of Regulation S-X under the 1933 Act),
and (B) the winding up, voluntary liquidation or dissolution of such
Subsidiary will not result in an Event of Default hereunder or otherwise have a
Material Adverse Effect;

 

(vii)         in addition to any Asset Sale permitted pursuant to
any other subpart in this Section 7.2.3, the Borrower and its Subsidiaries
may make or effect other Asset Sales so long as (A) the aggregate amount
(based upon the fair market value of the assets) of all Property sold or
otherwise disposed pursuant to all such Asset Sales on and after the Closing
Date does not constitute a Substantial Portion of the Property of the Borrower
and its Subsidiaries at the time of and after giving effect to any such Asset
Sale and (B) at least 80% of the total consideration received by the Borrower
or any of its Subsidiaries, as applicable, for such Asset Sale or series of
Asset Sales consists of cash or Cash Equivalents;

 

(viii)        the Borrower and its Subsidiaries shall be permitted
to create, incur, assume and suffer to exist Liens permitted pursuant to Section 7.2.2
[Liens]; and

 

(ix)           the Borrower and its Subsidiaries shall be permitted
to make and dispose of the Investments permitted pursuant to Section 7.2.5
[Investments].

 

7.2.4              Fiscal Year.  The Borrower shall not, and shall not permit
any Subsidiary of the Borrower to, change its fiscal year from the twelve-month
period beginning January 1 and ending December 31.

 

7.2.5              Investments.  The Borrower will not, and will not permit
any of its Subsidiaries to, make or hold any Investments, except (a) Investments
held by the Borrower or any of its Subsidiaries in cash or Cash Equivalents; (b) Investments
of the Borrower in any of its Subsidiaries; (c) Investments of a
Subsidiary of the Borrower in the Borrower or another Subsidiary of the
Borrower; (d) Permitted Acquisitions; (e) Investments by the Borrower
and its Subsidiaries in account debtors received in connection with the
bankruptcy or reorganization, or in settlement of the delinquent obligations of
financially troubled suppliers or customers, in the 

 

44

 

ordinary course of business; (f) promissory notes, earn-outs,
other contingent payment obligations and other non-cash consideration received
by Borrower or any of its Subsidiaries as partial payment of the total
consideration of any Asset Sale made in accordance with Section 7.2.3(vii);
(g) loans and advances by the Borrower and its Subsidiaries to their
respective employees in an aggregate amount not to exceed $1,000,000, at any
time outstanding; (h) Investments comprised of the purchase of receivables
from other energy marketers as required from time to time by one or more
applicable Official Body; (i) other Investments held by the Borrower or
its Subsidiaries on the Closing Date that are listed on Schedule 7.2.5;
and (j) Investments by the Borrower and its Subsidiaries not otherwise
permitted under this Section 7.2.5 in an aggregate amount not to exceed
$5,000,000, at any time.

 

7.2.6              Transactions with
Affiliates.  The Borrower
will not, and will not permit any of its Subsidiaries to, enter into any
transaction or series of transactions with any Affiliate (other than, in the
case of the Borrower, any Subsidiary of the Borrower, and in the case of a
Subsidiary of the Borrower, the Borrower or another Subsidiary of the Borrower)
other than in the ordinary course of business of and pursuant to the reasonable
requirements of the Borrower’s or such Subsidiary’s business and upon fair and
reasonable terms no less favorable to the Borrower or such Subsidiary than
would be obtained in a comparable arm’s-length transaction with a Person other
than an Affiliate, except (i) sales of goods to
an Affiliate for use or distribution outside the United States that in the good
faith judgment of the Borrower complies with any applicable legal requirements
of the Code, or (ii) agreements and
transactions with and payments to officers, directors and shareholders that are
either (A) entered into in the ordinary course
of business and not prohibited by any of the provisions of this Agreement, or (B) entered into outside the ordinary course of
business, approved by the directors or shareholders of the Borrower, and not
prohibited by any of the provisions of this Agreement.

 

7.2.7              Material Agreements.  Neither the Borrower nor any Subsidiary of
the Borrower shall default in the performance, observance or fulfillment of any
of the obligations, covenants or conditions contained in any agreement,
instrument or other document to which the Borrower or such Subsidiary, as
applicable, is a party, which default could reasonably be expected to have a
Material Adverse Effect.

 

7.2.8              Use of Proceeds/Margin
Regulations.  The Borrower
will not, and will not permit any of its Subsidiaries to, use any part of the
proceeds of any Borrowing, directly or indirectly, to purchase or carry Margin
Stock, or to extend credit to others for the purpose of purchasing or carrying
any Margin Stock, in violation of any of the provisions of Regulation T, U or X
of the Board of Governors of the Federal Reserve System.

 

7.2.9              No Dividend Restrictions.  The Borrower shall not permit any of its
Subsidiaries to enter into any agreement or otherwise create or cause or permit
to exist or become effective any consensual restriction limiting the ability
(whether by covenant, event of default or otherwise) of such Subsidiary to (i) pay
dividends or make any other distributions on shares of such Subsidiary’s
capital stock held by the Borrower or any other Subsidiary of the Borrower or (ii) pay
any other obligation owed to the Borrower or any other Subsidiary of the
Borrower, provided, however,
that this clause (ii) shall not apply to Permitted Restrictive Covenants.

 

45

 

7.2.10            Swap Agreements.  The Borrower will not, and will not permit
any of its Subsidiaries to, enter into any Swap Agreement other than Swap
Agreements pursuant to which the Borrower or such Subsidiary has hedged its
reasonably estimated interest rate, foreign currency or commodity exposure, and
not for speculative purposes.

 

7.2.11            Financial Covenant.  The Borrower will not at any time permit the
ratio of (i) Consolidated Total Debt to (ii) Consolidated Total Capitalization to exceed
0.65 to 1.00.

 

7.3           Reporting Requirements.  The Borrower will furnish or cause to be
furnished to the Administrative Agent and each of the Lenders.

 

7.3.1              Annual Financial Statements.  As soon as available and in any event within
90 days after the close of each fiscal year of the Borrower, commencing with
the fiscal year ending December 31, 2008, the consolidated and
consolidating balance sheets of the Borrower and its consolidated Subsidiaries
as at the end of such fiscal year and the related consolidated and
consolidating statements of income, of stockholders’ equity and of cash flows
for such fiscal year, in each case setting forth comparative figures for the
preceding fiscal year, all in reasonable detail and accompanied by an opinion
with respect to such consolidated financial statements of KPMG LLP or other
independent public accountants of recognized national standing selected by the
Borrower, which opinion shall be unqualified and shall (i) state
that such accountants audited such consolidated financial statements in
accordance with generally accepted auditing standards, that such accountants
believe that such audit provides a reasonable basis for their opinion, and that
in their opinion such consolidated financial statements present fairly, in all
material respects, the consolidated financial position of the Borrower and its
consolidated Subsidiaries as at the end of such fiscal year and the
consolidated results of their operations and cash flows for such fiscal year in
conformity with generally accepted accounting principles, or (ii) contain such statements as are customarily
included in unqualified reports of independent accountants in conformity with
the recommendations and requirements of the American Institute of Certified
Public Accountants (or any successor organization).

 

7.3.2              Quarterly Financial
Statements.  As soon as
available and in any event within 45 days after the close of each of the first
three quarterly accounting periods in each fiscal year of the Borrower, the
unaudited consolidated and consolidating balance sheets of the Borrower and its
consolidated Subsidiaries as at the end of such quarterly period and the
related unaudited consolidated and consolidating statements of income and of
cash flows for such quarterly period and/or for the fiscal year to date, and
setting forth, in the case of such unaudited consolidated statements of income
and of cash flows, comparative figures for the related periods in the prior
fiscal year, and that shall be certified on behalf of the Borrower by the Chief
Financial Officer or other Authorized Officer, subject to changes resulting
from normal year-end audit adjustments.

 

7.3.3              Certificate of the Borrower.  Concurrently with the delivery of the
financial statements of the Borrower furnished to the Administrative Agent and
to the Lenders pursuant to Sections 7.3.1 [Annual Financial Statements]
and 7.3.2 [Quarterly Financial Statements], a certificate (each a “Compliance Certificate”) of the Borrower signed by the

 

46

 

Chief Executive Officer,
President or Chief Financial Officer of the Borrower, in the form of Exhibit 7.3.3.

 

7.3.4              Notices.

 

7.3.4.1           Default.  Promptly
after any officer of the Borrower has learned of the occurrence of an Event of
Default, Potential Default or default in the observance or performance of any
other covenant, condition or provision hereof or of any other Loan Document, a
certificate signed by an Authorized Officer setting forth the details of such
Event of Default, Potential Default or default and the action which the
Borrower proposes to take with respect thereto.

 

7.3.4.2           Litigation.  Promptly
after the commencement thereof, notice of all actions, suits or proceedings
before or by any Official Body or any other Person against the Borrower or its
Subsidiaries, that involve a claim or series of claims which if adversely
determined would constitute a Material Adverse Effect.

 

7.3.4.3           Organizational Documents. 
Promptly after the filing or adopting thereof, notice of any amendment
to the organizational documents of the Borrower.

 

7.3.4.4           [Intentionally Omitted].

 

7.3.4.5           ERISA Event.  Promptly upon
the occurrence of any Reportable Event has occurred with respect to any Plan, a
statement, signed by an Authorized Officer, describing such Reportable Event
and the action that the Borrower proposes to take with respect thereto.

 

7.3.4.6           Single Employer Plans.  Within 270
days after the close of each fiscal year of the Borrower, the Borrower will
deliver to each of the Lenders a statement of the Unfunded Liabilities,
certified as correct by an actuary enrolled under ERISA.

 

7.3.4.7           Environmental Event.  Promptly
after receipt thereof by the Borrower or any Subsidiary of the Borrower, a copy
of (a) any notice or claim to the effect that the Borrower or any of its
Subsidiaries is or may be liable to any Person as a result of the release by
the Borrower, any of its Subsidiaries, or any other Person of any Hazardous
Materials into the environment, and (b) any notice alleging any violation
of any Environmental Law by the Borrower or any of its Subsidiaries, which in
the case of either (a) or (b) above could reasonably be expected to
have a Material Adverse Effect.

 

7.3.4.8           Other Reports.

 

(i)            SEC Reports; Shareholder
Communications.  Promptly
after their filing with the SEC, reports, including Forms 10-K, 10-Q and 8-K,
registration statements and prospectuses and other shareholder communications,
filed by the Borrower with the SEC,

 

(ii)           Other Information.  Promptly such other reports and information
relating to the Borrower or its Subsidiaries as the Administrative Agent may
from time to time reasonably request.

 

47

 

8.             DEFAULT

 

8.1           Events of Default.  An Event of Default shall mean the occurrence
or existence of any one or more of the following events or conditions (whatever
the reason therefor and whether voluntary, involuntary or effected by operation
of Law):

 

8.1.1              Payments Under Loan
Documents.  The Borrower
shall (i) default in the payment when due
(whether at maturity, on a date fixed for a scheduled repayment, on a date on
which a required prepayment is to be made, upon acceleration or otherwise) of
any principal of the Loans; or (ii) default,
and such default shall continue for five or more days, in the payment when due
of any interest on the Loans or any Fees or any other amounts owing hereunder
or under any other Loan Document;

 

8.1.2              Breach of Warranty.  Any representation, warranty or statement
made by the Borrower herein or in any other Loan Document (other than pursuant
to Section 5.1.12(ii)) or in any statement or certificate delivered or
required to be delivered pursuant hereto or thereto shall prove to be untrue in
any material respect on the date as of which made or deemed made;

 

8.1.3              Breach of Negative Covenants
or Visitation Rights.  the
Borrower shall default in the due performance or observance by it of any term,
covenant or agreement contained in Sections 7.1.1(b), 7.1.4 [Preservation
of Existence, etc.], 7.1.7 [Use of Proceeds], 7.1.8 [Senior Debt], 7.2[Negative
Covenants] or 7.3 [Reporting Requirements] of this Agreement;

 

8.1.4              Breach of Other Covenants.  The Borrower shall default in the observance
or performance of any other covenant, condition or provision hereof or of any
other Loan Document and such default shall continue unremedied for a period of
thirty (30) days after notice thereof from the Administrative Agent;

 

8.1.5              Defaults in Other Agreements
or Indebtedness.  The Borrower
or any of its Subsidiaries shall (i) default in
any payment with respect to any Indebtedness (other than the Obligations), and
all grace periods applicable to such payment shall have expired, in an
aggregate amount in excess of $10,000,000, regardless of whether the holder or
holders of said Indebtedness (or a trustee or agent on behalf of such holder or
holders) exercises its rights, if any, to cause such Indebtedness to become due
and payable prior to its stated maturity; or (ii) default
in the observance or performance of any agreement or condition relating to any
such Indebtedness or contained in any instrument or agreement evidencing,
securing or relating thereto (and all grace periods applicable to such
observance, performance or condition shall have expired), or any other event
shall occur or condition exist, the effect of which default or other event or
condition is to cause, or to permit the holder or holders of such Indebtedness
(or a trustee or agent on behalf of such holder or holders) to cause any such
Indebtedness to become due prior to its stated maturity, or any such
Indebtedness of the Borrower or any of its Subsidiaries shall be declared to be
due and payable, or shall be required to be prepaid (other than by a regularly
scheduled required prepayment or redemption, prior to the stated maturity
thereof);

 

48

 

8.1.6              Final Judgments or Orders.  One or more judgments, orders or decrees
shall be entered against the Borrower and/or any of its Subsidiaries involving
a liability (other than a liability covered by insurance, as to which the
carrier has adequate claims paying ability and has not effectively reserved its
rights) of $10,000,000 or more in the aggregate for all such judgments, orders
and decrees for the Borrower and its Subsidiaries, and any such judgments or
orders or decrees shall not have been vacated, discharged or stayed or bonded
pending appeal within 30 days from the entry thereof;

 

8.1.7              Loan Document Unenforceable.  Any of the Loan Documents shall cease to be
legal, valid and binding agreements enforceable against the party executing the
same or such party’s successors and assigns (as permitted under the Loan
Documents) in accordance with the respective terms thereof or shall in any way
be terminated (except in accordance with its terms) or become or be declared
ineffective or inoperative or shall in any way be challenged or contested or
cease to give or provide the respective rights, interests, remedies, powers or
privileges intended to be created thereby;

 

8.1.8              Events Relating to Plans and
Benefit Arrangements.  (i) any member of the Borrower’s Controlled Group
shall fail to pay when due an amount or amounts aggregating in excess of
$30,000,000 which it shall have become liable to pay under Title IV of ERISA,
or notice of intent to terminate a Plan or Plans of such Borrower which in the
aggregate have Unfunded Liabilities in excess of $30,000,000 shall be filed
under Title IV of ERISA by such Borrower or any member of the Controlled Group,
any plan administrator of the Plan or Plans or any combination of the foregoing
or any Reportable Event that would reasonably be expected to have a Material
Adverse Effect shall occur in connection with any Plan; (ii) the Borrower
or any member of the Controlled Group shall have been notified by the sponsor
of a Multiemployer Plan that it has incurred withdrawal liability to such
Multiemployer Plan in an amount that, when aggregated with all other amounts
required to be paid to Multiemployer Plans by the Borrower or any other member
of the Controlled Group as withdrawal liability (determined as of the date of
such notification), exceeds $10,000,000 or requires payment exceeding
$10,000,000 per annum; or (iii) the Borrower or any other member of the
Controlled Group shall have been notified by the sponsor of a Multiemployer
Plan that such Multiemployer Plan is in reorganization or is being terminated,
within the meaning of Title IV of ERISA, if as a result of such reorganization
or termination the aggregate annual contribution of the Borrower and the other
members of the Controlled Group (taken as a whole) to all Multiemployer Plans
that are then in reorganization or being terminated have been or will be
increased over the amounts contributed to such Multiemployer Plans for the
respective plan years of each such Multiemployer Plan immediately preceding the
plan in year in which the reorganization or termination occurs by an amount
exceeding $10,000,000;

 

8.1.9              Change of Control.  There occurs a Change of Control; or

 

8.1.10            Relief Proceedings.  (i) A Relief Proceeding shall have been
instituted against the Borrower or any of its Subsidiaries and such Relief Proceeding
shall remain undismissed or unstayed and in effect for a period of sixty (60)
consecutive days or such court shall enter a decree or order granting any of
the relief sought in such Relief Proceeding, (ii) the Borrower or any of
its Subsidiaries institutes, or takes any action in furtherance of, a Relief 

 

49

 

Proceeding, or (iii) the
Borrower or any of its Subsidiaries ceases to be solvent or admits in writing
its inability to pay its debts as they mature.

 

8.2           Consequences
of Event of Default.

 

8.2.1              Events of Default Other Than
Bankruptcy, Insolvency or Reorganization Proceedings.  If an Event of Default specified under
Sections 8.1.1 through 8.1.9 shall occur and be continuing, the Lenders
and the Administrative Agent shall be under no further obligation to make Loans
and the Administrative Agent may, and upon the request of the Required Lenders,
shall by written notice to the Borrower, declare the unpaid principal
amount of the Loans then outstanding and all interest accrued thereon, any
unpaid fees and all other Indebtedness of the Borrower to the Lenders hereunder
and thereunder to be forthwith due and payable, and the same shall thereupon
become and be immediately due and payable to the Administrative Agent for the
benefit of each Lender without presentment, demand, protest or any other notice
of any kind, all of which are hereby expressly waived; and

 

8.2.2              Bankruptcy, Insolvency or
Reorganization Proceedings.  If an Event of Default specified under Section 8.1.10
[Relief Proceedings] shall occur, the Lenders shall be under no further
obligations to make Loans hereunder and the unpaid principal amount of the
Loans then outstanding and all interest accrued thereon, any unpaid fees and
all other Indebtedness of the Borrower to the Lenders hereunder and thereunder
shall be immediately due and payable, without presentment, demand, protest or
notice of any kind, all of which are hereby expressly waived; and

 

8.2.3              Set-off.  If an Event of Default shall have occurred
and be continuing, each Lender, and each of their respective Affiliates and any
participant of such Lender or Affiliate which has agreed in writing to be bound
by the provisions of Section 4.3 [Sharing of Payments] is hereby
authorized at any time and from time to time, to the fullest extent permitted
by applicable Law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final, in whatever currency) at any time
held and other Obligations (in whatever currency) at any time owing by such
Lender, or any such Affiliate or participant to or for the credit or the
account of the Borrower against any and all of the Obligations of the Borrower
now or hereafter existing under this Agreement or any other Loan Document to
such Lender, Affiliate or participant, irrespective of whether or not such
Lender, Affiliate or participant shall have made any demand under this
Agreement or any other Loan Document and although such Obligations of the
Borrower may be contingent or unmatured or are owed to a branch or office of
such Lender different from the branch or office holding such deposit or
obligated on such Indebtedness.  The
rights of each Lender and their respective Affiliates and participants under
this Section are in addition to other rights and remedies (including other
rights of setoff) that such Lender or its respective Affiliates and
participants may have.  Each Lender
agrees to notify the Borrower and the Administrative Agent promptly after any
such setoff and application; provided that the failure to give such notice
shall not affect the validity of such setoff and application; and

 

8.2.4              Application of Proceeds.  From and after the date on which the
Administrative Agent has taken any action pursuant to this Section 8.2 and
until all Obligations of the Borrower have been paid in full, any and all
proceeds received by the Administrative

 

50

 

Agent from any sale or other
disposition of any of the Borrower’s assets, or any part thereof, or the
exercise of any other remedy by the Administrative Agent, shall be applied as
follows:

 

(i)            first, to reimburse the Administrative Agent and the
Lenders for out-of-pocket costs, expenses and disbursements, including
reasonable attorneys’ and paralegals’ fees and legal expenses, incurred by the
Administrative Agent or the Lenders in connection with realizing on any of the
Borrower’s assets or collection of any Obligations of any of the Borrower under
any of the Loan Documents, including advances made by the Lenders or any one of
them or the Administrative Agent for the reasonable maintenance, preservation,
protection or enforcement of, or realization upon, the assets, including
advances for taxes, insurance, repairs and the like and reasonable expenses
incurred to sell or otherwise realize on, or prepare for sale or other
realization on, any of the Borrower’s assets;

 

(ii)           second, to the repayment of all Obligations then due
and unpaid of the Borrower to the Lenders or their Affiliates incurred under
this Agreement or any of the other Loan Documents or agreements evidencing
Lender Provided Swaps or Other Lender Provided Financial Service Products,
whether of principal, interest, fees, expenses or otherwise; and

 

(iii)          the balance, if any, as required by Law.

 

9.             THE
ADMINISTRATIVE AGENT

 

9.1           Appointment and Authority.  Each of the Lenders hereby irrevocably
appoints PNC to act on its behalf as the Administrative Agent hereunder and
under the other Loan Documents and authorizes the Administrative Agent to take
such actions on its behalf and to exercise such powers as are delegated to the
Administrative Agent by the terms hereof or thereof, together with such actions
and powers as are reasonably incidental thereto.  The provisions of this Section 9 are
solely for the benefit of the Administrative Agent, the Lenders and the
Borrower shall not have rights as a third party beneficiary of any of such
provisions.

 

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

 

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

 

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

 

51

 

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

 

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

 

The Administrative Agent shall not be liable for any action taken or
not taken by it (i) with the consent or at the request of the Required
Lenders (or such other number or percentage of the Lenders as shall be
necessary, or as the Administrative Agent shall believe in good faith shall be
necessary, under the circumstances as provided in Sections 10.1
[Modifications, Amendments or Waivers] and 8.2 [Consequences of Event of
Default]) or (ii) in the absence of its own gross negligence or willful
misconduct.  The Administrative Agent
shall be deemed not to have knowledge of any Potential Default or Event of
Default unless and until notice describing such Potential Default or Event of
Default is given to the Administrative Agent by the Borrower or a Lender.

 

The Administrative Agent shall not be responsible for or have any duty
to ascertain or inquire into (i) any statement, warranty or representation
made in or in connection with this Agreement or any other Loan Document, (ii) the
contents of any certificate, report or other document delivered hereunder or
thereunder or in connection herewith or therewith, (iii) the performance
or observance of any of the covenants, agreements or other terms or conditions
set forth herein or therein or the occurrence of any Potential Default or Event
of Default, (iv) the validity, enforceability, effectiveness or
genuineness of this Agreement, any other Loan Document or any other agreement,
instrument or document or (v) the satisfaction of any condition set forth
in Section 6 [Conditions of Lending] or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the
Administrative Agent.

 

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

 

52

 

counsel for the Borrower),
independent accountants and other experts selected by it, and shall not be
liable for any action taken or not taken by it in accordance with the advice of
any such counsel, accountants or experts.

 

9.5           Delegation of Duties.  The Administrative Agent may perform any and
all of its duties and exercise its rights and powers hereunder or under any
other Loan Document by or through any one or more sub-agents appointed by the
Administrative Agent.  The Administrative
Agent and any such sub-agent may perform any and all of its duties and exercise
its rights and powers by or through their respective Related Parties.  The exculpatory provisions of this Section 9
shall apply to any such sub-agent and to the Related Parties of the
Administrative Agent and any such sub-agent, and shall apply to their
respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent.

 

9.6           Resignation of Administrative Agent.  The Administrative Agent may at any time give
notice of its resignation to the Lenders and the Borrower.  Upon receipt of any such notice of
resignation, the Required Lenders shall have the right, with approval from the
Borrower (so long as no Event of Default has occurred and is continuing), to
appoint a successor, such approval not to be unreasonably withheld or
delayed.  If no such successor shall have
been so appointed by the Required Lenders and shall have accepted such appointment
within thirty (30) days after the retiring Administrative Agent gives
notice of its resignation, then the retiring Administrative Agent may on behalf
of the Lenders, appoint a successor Administrative Agent meeting the
qualifications set forth above; provided that if the Administrative Agent
shall notify the Borrower and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become
effective in accordance with such notice and (i) the retiring
Administrative Agent shall be discharged from its duties and obligations
hereunder and under the other Loan Documents and (ii) all payments,
communications and determinations provided to be made by, to or through the
Administrative Agent shall instead be made by or to each Lender directly, until
such time as the Required Lenders appoint a successor Administrative Agent as
provided for above in this Section 9.6. 
Upon the acceptance of a successor’s appointment as Administrative Agent
hereunder, such successor shall succeed to and become vested with all of the
rights, powers, privileges and duties of the retiring (or retired)
Administrative Agent, and the retiring Administrative Agent shall be discharged
from all of its duties and obligations hereunder or under the other Loan
Documents (if not already discharged therefrom as provided above in this
Section).  The fees payable by the
Borrower to a successor Administrative Agent shall be the same as those payable
to its predecessor unless otherwise agreed between the Borrower and such
successor.  After the retiring
Administrative Agent’s resignation hereunder and under the other Loan
Documents, the provisions of this Section 9 and Section 10.3
[Expenses; Indemnity; Damage Waiver] shall continue in effect for the benefit
of such retiring Administrative Agent, its sub-agents and their respective
Related Parties in respect of any actions taken or omitted to be taken by any
of them while the retiring Administrative Agent was acting as Administrative
Agent.

 

9.7           Non-Reliance on Administrative Agent and Other Lenders.  Each Lender acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other
Lender or any of their Related Parties and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this

 

53

 

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

 

9.8           No Other Duties, etc.  Anything herein to the contrary
notwithstanding, none of the Lenders listed on the cover page hereof shall
have any powers, duties or responsibilities under this Agreement or any of the
other Loan Documents, except in its capacity, as applicable, as the
Administrative Agent or as a Lender hereunder.

 

9.9           Administrative Agent’s Fee.  The Borrower shall pay to the Administrative
Agent a nonrefundable fee (the “Administrative Agent’s Fee”)
under the terms of a letter (the “Administrative Agent’s
Letter”) between the Borrower and Administrative Agent, as amended
from time to time.

 

9.10         No Reliance on Administrative Agent’s Customer
Identification Program.  Each
Lender acknowledges and agrees that neither such Lender, nor any of its
Affiliates, participants or assignees, may rely on the Administrative Agent to
carry out such Lender’s, Affiliate’s, participant’s or assignee’s customer
identification program, or other obligations required or imposed under or
pursuant to the USA Patriot Act or the regulations thereunder, including the
regulations contained in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP Regulations”), or any other Anti-Terrorism Law,
including any programs involving any of the following items relating to or in
connection with the Borrower, its Affiliates or their agents, the Loan
Documents or the transactions hereunder or contemplated hereby: (i) any
identity verification procedures, (ii) any recordkeeping, (iii) comparisons
with government lists, (iv) customer notices or (v) other procedures
required under the CIP Regulations or such other Laws.

 

10.           MISCELLANEOUS

 

10.1         Modifications, Amendments or Waivers.  With the written consent of the Required
Lenders, the Administrative Agent, acting on behalf of all the Lenders, and the
Borrower may from time to time enter into written agreements amending or
changing any provision of this Agreement or any other Loan Document or the
rights of the Lenders or the Borrower hereunder or thereunder, or may grant
written waivers or consents hereunder or thereunder.  Any such agreement, waiver or consent made
with such written consent shall be effective to bind all the Lenders and the
Borrower; provided, that no such agreement, waiver or consent may be
made which will:

 

10.1.1            Increase of Commitment.  Increase the amount of the Commitment of any
Lender hereunder without the consent of such Lender;

 

10.1.2            Extension of Payment;
Reduction of Principal Interest or Fees; Modification of Terms of Payment.  Whether or not any Loans are outstanding,
extend the Expiration Date or the time for payment of principal or interest of
any Loan, the Facility Fee or any other fee payable to any Lender, or reduce
the principal amount of or the rate of interest

 

54

 

borne by any Loan or reduce
the Facility Fee or any other fee payable to any Lender, without the consent of
each Lender directly affected thereby;

 

10.1.3            Miscellaneous.  Amend Section 4.2 [Pro Rata Treatment of
Lenders], 9.3 [Exculpatory Provisions, Etc.] or 4.3 [Sharing of Payments by
Lenders] or this Section 10.1, alter any provision regarding the pro rata
treatment of the Lenders or requiring all Lenders to authorize the taking of
any action or reduce any percentage specified in the definition of Required
Lenders, in each case without the consent of all of the Lenders (other than
Defaulting Lenders);

 

provided that no agreement, waiver or consent which would
modify the interests, rights or obligations of the Administrative Agent without
the written consent of such Administrative Agent, and provided, further
that, if in connection with any proposed waiver, amendment or modification
referred to in Sections 10.1.1 through 10.1.3 above, the consent of the
Required Lenders is obtained but the consent of one or more of such other
Lenders whose consent is required is not obtained (each a “Non-Consenting
Lender”), then the Borrower shall have the right to replace any such
Non-Consenting Lender with one or more replacement Lenders pursuant to Section 4.6.2
[Replacement of a Lender].

 

10.2         No Implied Waivers; Cumulative Remedies.  No course of dealing and no delay or failure
of the Administrative Agent or any Lender in exercising any right, power,
remedy or privilege under this Agreement or any other Loan Document shall
affect any other or future exercise thereof or operate as a waiver thereof, nor
shall any single or partial exercise thereof preclude any further exercise
thereof or of any other right, power, remedy or privilege.  The rights and remedies of the Administrative
Agent and the Lenders under this Agreement and any other Loan Documents are
cumulative and not exclusive of any rights or remedies which they would
otherwise have.

 

10.3         Expenses;
Indemnity; Damage Waiver.

 

10.3.1            Costs and Expenses.  The Borrower shall pay (i) all
reasonable out-of-pocket expenses incurred by the Administrative Agent and its
Affiliates (including the reasonable fees, charges and disbursements of counsel
for the Administrative Agent), and shall pay all reasonable fees and time
charges and disbursements for attorneys who may be employees of the
Administrative Agent, in connection with the syndication of the credit
facilities provided for herein, the preparation, negotiation, execution,
delivery and administration of this Agreement and the other Loan Documents or
any amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), (ii) all reasonable out-of-pocket expenses incurred by the
Administrative Agent and each Lender (including the reasonable fees, charges
and disbursements of any counsel for the Administrative Agent, any Lender), and
shall pay all reasonable fees and time charges for attorneys who may be
employees of the Administrative Agent, any Lender, in connection with the
enforcement or protection of its rights (A) in connection with this
Agreement and the other Loan Documents, including its rights under this
Section, or (B) in connection with the Loans made hereunder, including all
such reasonable out-of-pocket expenses incurred during any workout,
restructuring or negotiations in respect of such Loans, and (iv) all
reasonable out-of-pocket expenses of the Administrative Agent’s regular
employees and agents engaged

 

55

 

periodically to perform
audits of the Borrower’s books, records and business properties in accordance
with this Agreement.

 

10.3.2            Indemnification by the Borrower.  The Borrower shall indemnify the
Administrative Agent (and any sub-agent thereof), each Lender, and each Related
Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless
from, any and all losses, claims, damages, liabilities and related expenses
(including the reasonable fees, charges and disbursements of any counsel for
any Indemnitee), and shall indemnify and hold harmless each Indemnitee from all
reasonable fees and time charges and disbursements for attorneys who may be
employees of any Indemnitee, incurred by any Indemnitee or asserted against any
Indemnitee by any third party or by the Borrower arising out of, in connection
with, or as a result of (i) the execution or delivery of this Agreement,
any other Loan Document or any agreement or instrument contemplated hereby or
thereby, the performance by the parties hereto of their respective obligations
hereunder or thereunder or the consummation of the transactions contemplated
hereby or thereby, (ii) any Loan or the use or proposed use of the
proceeds therefrom, (iii) breach of representations, warranties or
covenants of the Borrower under the Loan Documents, or (iv) any actual or
prospective claim, litigation, investigation or proceeding relating to any of
the foregoing, including any such items or losses relating to or arising under
Environmental Laws or pertaining to environmental matters, whether based on
contract, tort or any other theory, whether brought by a third party or by the
Borrower and regardless of whether any Indemnitee is a party thereto; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses (x) are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Indemnitee, (y) result from a claim brought by the Borrower against
an Indemnitee for breach in bad faith of such Indemnitee’s obligations
hereunder or under any other Loan Document, if the Borrower has obtained a
final and nonappealable judgment in its favor on such claim as determined by a
court of competent jurisdiction, or (z) arise solely out of an examination
of a Lender by an regulatory or other governmental authority having
jurisdiction over it and such examination is not related to any action or
inaction of the Borrower or its Subsidiaries.

 

10.3.3            Reimbursement by Lenders.  To the extent that the Borrower for any
reason fails to indefeasibly pay any amount required under Sections 10.3.1
[Costs and Expenses] or 10.3.2 [Indemnification by the Borrower] to be paid by
it to the Administrative Agent (or any sub-agent thereof), or any Related Party
of any of the foregoing, each Lender severally agrees to pay to the
Administrative Agent (or any such sub-agent), or such Related Party, as the
case may be, such Lender’s Ratable Share (determined as of the time that the
applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount, provided that the unreimbursed expense or indemnified loss,
claim, damage, liability or related expense, as the case may be, was incurred
by or asserted against the Administrative Agent (or any such sub-agent) in its
capacity as such, or against any Related Party of any of the foregoing acting
for the Administrative Agent (or any such sub-agent) in connection with such
capacity.

 

10.3.4            Waiver of Consequential
Damages, Etc.  To the
fullest extent permitted by applicable Law, the Borrower shall not assert, and
hereby waives, any claim against any Indemnitee, on any theory of liability,
for special, indirect, consequential or punitive damages (as

 

56

 

opposed to direct or actual
damages) arising out of, in connection with, or as a result of, this Agreement,
any other Loan Document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby, any Loan or the use of the
proceeds thereof.  No Indemnitee referred
to in Section 10.3.2 [Indemnification by Borrower] shall be liable for any
damages arising from the use by unintended recipients of any information or
other materials distributed by it through telecommunications, electronic or
other information transmission systems in connection with this Agreement or the
other Loan Documents or the transactions contemplated hereby or thereby.

 

10.3.5            Payments.  All amounts due under this Section shall
be payable not later than ten (10) days after demand therefor.

 

10.4         Holidays.  Whenever payment of a Loan to be made or
taken hereunder shall be due on a day which is not a Business Day such payment
shall be due on the next Business Day (except as provided in Section 3.2
[Interest Periods]) and such extension of time shall be included in computing
interest and fees, except that the Loans shall be due on the Business Day
preceding the Expiration Date if the Expiration Date is not a Business
Day.  Whenever any payment or action to
be made or taken hereunder (other than payment of the Loans) shall be stated to
be due on a day which is not a Business Day, such payment or action shall be
made or taken on the next following Business Day, and such extension of time
shall not be included in computing interest or fees, if any, in connection with
such payment or action.

 

10.5         Notices;
Effectiveness; Electronic Communication.

 

10.5.1            Notices Generally.  Except in the case of notices and other
communications expressly permitted to be given by telephone (and except as provided
in Section 10.5.2 [Electronic Communications]), all notices and other
communications provided for herein shall be in writing and shall be delivered
by hand or overnight courier service, mailed by certified or registered mail or
sent by telecopier (i) if to a Lender, to it at its address set forth in
its administrative questionnaire, or (ii) if to any other Person, to it at
its address set forth on Schedule 1.1(B).

 

Notices sent by hand or overnight courier service, or mailed by
certified or registered mail, shall be deemed to have been given when received;
notices sent by telecopier shall be deemed to have been given when sent (except
that, if not given during normal business hours for the recipient, shall be
deemed to have been given at the opening of business on the next Business Day
for the recipient).  Notices delivered
through electronic communications to the extent provided in Section 10.5.2
[Electronic Communications], shall be effective as provided in such Section.

 

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

 

57

 

to procedures approved by
it; provided that approval of such procedures may be limited to particular
notices or communications; provided, further, that delivery
of the information required to be delivered by the Borrower to
the Administrative Agent and each of the Lenders pursuant to Sections
7.3.1, 7.3.2 and 7.3.4.8(i) by electronic correspondence to the
Administrative Agent at the e-mail address provided by the
Administrative Agent to the Borrower, as the same may be updated from time to
time, shall satisfy the Borrower’s obligation to deliver such
information.  Unless the Administrative
Agent otherwise prescribes, (i) notices and other communications sent to
an e-mail address shall be deemed received upon the sender’s receipt of an
acknowledgement from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other written
acknowledgement); provided that if such notice or other communication is
not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on
the next Business Day for the recipient, and (ii) notices or
communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that
such notice or communication is available and identifying the website address
therefor.

 

10.5.3            Change of Address, Etc.  Any party hereto may change its address,
e-mail address or telecopier number for notices and other communications
hereunder by notice to the other parties hereto.

 

10.6         Severability.  The provisions of this Agreement are intended
to be severable.  If any provision of
this Agreement shall be held invalid or unenforceable in whole or in part in
any jurisdiction, such provision shall, as to such jurisdiction, be ineffective
to the extent of such invalidity or unenforceability without in any manner
affecting the validity or enforceability thereof in any other jurisdiction or
the remaining provisions hereof in any jurisdiction.

 

10.7         Duration; Survival.  All representations and warranties of the
Borrower contained herein or made in connection herewith shall survive the
execution and delivery of this Agreement, the completion of the transactions
hereunder and Payment In Full.  All covenants
and agreements of the Borrower contained herein relating to the payment of
principal, interest, premiums, additional compensation or expenses and
indemnification, including those set forth in the Notes, Section 4
[Payments] and Section 10.3 [Expenses; Indemnity; Damage Waiver], shall
survive Payment in Full.  All other
covenants and agreements of the Borrower shall continue in full force and
effect from and after the date hereof and until Payment in Full.

 

10.8         Successors
and Assigns.

 

10.8.1            Successors and Assigns
Generally.  The
provisions of this Agreement shall be binding upon, and inure to the benefit
of, the parties hereto and their respective successors and assigns permitted
hereby, except that the Borrower may not assign or otherwise transfer any of
its rights or obligations hereunder without the prior written consent of the
Administrative Agent and each Lender (other than a Defaulting Lender) and no
Lender may assign or otherwise transfer any of its rights or obligations
hereunder except (i) to an assignee in accordance with the provisions of Section 10.8.2
[Assignments by Lenders], (ii) by way of participation in accordance with
the provisions of Section 10.8.4 [Participations], or (iii) by way of
pledge or assignment of a security interest subject to the restrictions of Section 10.8.6
[Certain

 

58

 

Pledges; Successors and
Assigns Generally] (and any other attempted assignment or transfer by any party
hereto shall be null and void).  Nothing
in this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns
permitted hereby, Participants to the extent provided in Section 10.8.4
[Participations] and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

 

10.8.2            Assignments by Lenders.  Any Lender may at any time assign to one or
more assignees all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans at the
time owing to it); provided that any such assignment shall be subject to
the following conditions:

 

(i)            Minimum Amounts.

 

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

 

(B)           in
any case not described in clause (i)(A) of this Section 10.8.2, the
aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) or, if the applicable Commitment is not then in effect,
the principal outstanding balance of the Loans of the assigning Lender subject
to each such assignment (determined as of the date the Assignment and
Assumption Agreement with respect to such assignment is delivered to the
Administrative Agent or, if “Trade Date” is specified in the Assignment and
Assumption Agreement, as of the Trade Date) shall not be less than $5,000,000
of the assigning Lender unless each of the Administrative Agent and, so long as
no Event of Default has occurred and is continuing, the Borrower otherwise
consents (each such consent not to be unreasonably withheld or delayed).

 

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

 

(iii)          Required Consents.  No consent shall be required for any
assignment except for the consent of the Administrative Agent (which shall not
be unreasonably withheld or delayed) and the consent of the Borrower (which
shall not be unreasonably withheld or delayed) shall be required unless an
Event of Default has occurred and is continuing at the time of such assignment;

 

(iv)          Assignment and Assumption Agreement.  The parties to each assignment shall execute
and deliver to the Administrative Agent an Assignment and Assumption Agreement,
together with a processing and recordation fee of $3,500, and the assignee, if
it is not a Lender, shall deliver to the Administrative Agent an administrative
questionnaire provided by the Administrative Agent.

 

59

 

(v)           No Assignment to Borrower.  No such assignment shall be made to the
Borrower or any of the Borrower’s Affiliates or Subsidiaries.

 

(vi)          No Assignment to Natural Persons.  No such assignment shall be made to a natural
person.

 

(vii)         No Assignment to Foreign Lenders.  No such assignment shall be made to a Foreign
Lender.

 

Subject to acceptance and recording thereof by the Administrative Agent
pursuant to Section 10.8.3 [Register], from and after the effective date
specified in each Assignment and Assumption Agreement, the assignee thereunder
shall be a party to this Agreement and, to the extent of the interest assigned
by such Assignment and Assumption Agreement, have the rights and obligations of
a Lender under this Agreement, and, except with respect to its obligations
under Sections 10.5 [Notices; Effectiveness; Electronic Communications], 10.6
[Severability], 10.9 [Confidentiality], 10.10 [Counterparts; Integration;
Effectiveness] and 10.11 [CHOICE OF LAW; SUBMISSION TO JURISDICTION; WAIVER OF
VENUE; SERVICE OF PROCESS; WAIVER OF JURY TRIAL], the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption Agreement, be released from its obligations under this Agreement
(and, in the case of an Assignment and Assumption Agreement covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto) but shall continue to be entitled to the
benefits of Sections 3.4 [LIBOR Rate Unascertainable; Illegality;
Increased Costs; Deposits Not Available], 4.7 [Increased Costs], and 10.3
[Expenses, Indemnity; Damage Waiver]  with respect
to facts and circumstances occurring prior to the effective date of such
assignment.  Any assignment or transfer
by a Lender of rights or obligations under this Agreement that does not comply
with this Section 10.8.2 shall be treated for purposes of this Agreement
as a sale by such Lender of a participation in such rights and obligations in
accordance with Section 10.8.4 [Participations].

 

10.8.3            Register.  The Administrative Agent, acting solely for
this purpose as an agent of the Borrower, shall maintain a record of the names
and addresses of the Lenders, including any Participants and the Commitments
of, and principal and interest amounts of the Loans owing to, each Lender
pursuant to the terms hereof from time to time. 
Such register shall be conclusive, and the Borrower, the Administrative
Agent and the Lenders may treat each Person whose name is in such register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary.  Such register shall be available for
inspection by the Borrower and any Lender, at any reasonable time and from time
to time upon reasonable prior notice.

 

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

 

60

 

and directly with such
Lender in connection with such Lender’s rights and obligations under this
Agreement.

 

Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any  provision of this Agreement; provided
that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, modification or
waiver with respect to Sections 10.1.1 [Increase of Commitment, Etc.] or
10.1.2 [Extension of Payment, Etc. 
Subject to Section 10.8.5 [Limitations upon Participant Rights
Successors and Assigns Generally], the Borrower agrees that each Participant
shall be entitled to the benefits of Sections 3.4 [LIBOR Rate
Unascertainable; Illegality; Increased Costs; Deposits Not Available] and 4.7
[Increased Costs]  to the same extent as if it were
a Lender and had acquired its interest by assignment pursuant to Section 10.8.2
[Assignments by Lenders].  To the extent
permitted by Law, each Participant also shall be entitled to the benefits of Section 8.2.3
[Setoff]  as though it were a Lender; provided
such Participant agrees to be subject to Section 4.3 [Sharing of Payments
by Lenders]  as though it were a Lender.

 

10.8.5            Limitations upon Participant
Rights Successors and Assigns Generally.  A Participant shall not be entitled to
receive any greater payment under Sections 3.4 [LIBOR Rate Unascertainable;
Illegality; Increased Costs; Deposits Not Available], 4.7 [Increased Costs],
4.8 [Taxes] or 10.3 [ Expenses; Indemnity; Damage Waiver]  than
the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower’s prior written consent.  A Participant that would be a Foreign Lender
if it were a Lender shall not be entitled to the benefits of Section 4.8
[Taxes]  unless the Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the
benefit of the Borrower, to comply with Section 4.8.5 [Status of Lenders]  as though it were a Lender.

 

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

 

10.9         Confidentiality.

 

10.9.1            General.  Each of the Administrative Agent and the
Lenders agrees to maintain the confidentiality of the Information, except that
Information may be disclosed (i) to its Affiliates and to its and its
Affiliates’ respective partners, directors, officers, employees, agents,
advisors and other representatives who are engaged in the administration of
this Agreement or the Loans hereunder or rendering legal advice in connection
therewith (the “Representatives”) (it being understood that the
Representatives to whom such disclosure is made will be informed of the
confidential nature of such Information and instructed to keep such Information
confidential and, by accepting any Information, shall be deemed to have agreed
to be bound to the confidentiality provisions of this Section to the same
extent as if they were

 

61

 

parties to this Agreement), (ii) to
the extent requested by any regulatory authority purporting to have
jurisdiction over it (including any self-regulatory authority, such as the
National Association of Insurance Commissioners), (iii) to the extent
required by applicable Laws or regulations or by any subpoena or similar legal
process, (iv) to any other party hereto, (v) in connection with the
exercise of any remedies hereunder or under any other Loan Document or any
action or proceeding relating to this Agreement or any other Loan Document or
the enforcement of rights hereunder or thereunder, (vi) subject to an
agreement containing provisions substantially the same as, but no less
restrictive than, those of this Section and containing a clause expressly
providing that the Borrower is an express beneficiary of such confidentiality
provisions, to (A) any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this
Agreement or (B) any actual or prospective counterparty (or its advisors)
to any swap or derivative transaction relating to the Borrower and its
obligations, (vii) with the written consent of the Borrower or (viii) to
the extent such Information (Y) becomes publicly available other than as a
result of a breach of this Section or other known confidentiality
obligation or (Z) becomes available to the Administrative Agent, any
Lender or any of their respective Affiliates on a nonconfidential basis from a
source other than the Borrower; provided that with respect to clauses (ii),
(iii), (v), and (vi), the Administrative Agent or the Lender, as the case may
be, provides notification to the Borrower within a reasonable time prior to any
disclosure or, if such prior notification is not reasonably practicable, then
as soon as reasonably practicable.  Any
Person required to maintain the confidentiality of Information as provided in
this Section shall be considered to have complied with its obligation to
do so if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information.

 

10.9.2            Sharing Information With
Affiliates of the Lenders.  The Borrower acknowledges that from time to
time financial advisory, investment banking and other services may be offered
or provided to the Borrower or one or more of its Affiliates (in connection
with this Agreement or otherwise) by any Lender or by one or more Subsidiaries
or Affiliates of such Lender and the Borrower hereby authorizes each Lender to
share any information delivered to such Lender by the Borrower and its
Subsidiaries pursuant to this Agreement to any such Subsidiary or Affiliate
subject to the provisions of Section 10.9.1 [General].

 

10.10       Counterparts;
Integration; Effectiveness.

 

10.10.1          Counterparts; Integration;
Effectiveness.  This
Agreement may be executed in counterparts (and by different parties hereto in
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract.  This Agreement and the other Loan Documents,
and any separate letter agreements with respect to fees payable to the
Administrative Agent, constitute the entire contract among the parties relating
to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof
including any prior confidentiality agreements and commitments.  Except as provided in Section 6
[Conditions Of Lending], this Agreement shall become effective when it shall
have been executed by the Administrative Agent and when the Administrative
Agent shall have received counterparts hereof that, when taken together, bear
the signatures of each of the other parties hereto.  Delivery

 

62

 

of an executed counterpart
of a signature page of this Agreement by telecopy or e-mail shall be
effective as delivery of a manually executed counterpart of this Agreement.

 

10.11       CHOICE
OF LAW; SUBMISSION TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS; WAIVER
OF JURY TRIAL.

 

10.11.1          Governing Law.  This Agreement shall be deemed to be a
contract under the Laws of the State of New York without regard to its conflict
of laws principles.

 

10.11.2          SUBMISSION TO JURISDICTION.  EACH PARTY IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED
STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE
COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT
OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY
AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE
HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE 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.  NOTHING IN THIS
AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE A PARTY
MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST EACH PARTY OR ITS PROPERTIES IN
THE COURTS OF ANY JURISDICTION.

 

10.11.3          WAIVER OF VENUE.  EACH PARTY IRREVOCABLY AND UNCONDITIONALLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT IN ANY COURT REFERRED TO IN THIS SECTION 10.11.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH
COURT AND AGREES NOT ASSERT ANY SUCH DEFENSE.

 

10.11.4          SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY CONSENTS TO
SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.5 [NOTICES;
EFFECTIVENESS; ELECTRONIC COMMUNICATION]. 
NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO
SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

 

63

 

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

 

10.12       USA Patriot Act Notice.  Each Lender that is subject to the USA
Patriot Act and the Administrative Agent (for itself and not on behalf of any
Lender) hereby notifies the Borrower that pursuant to the requirements of the
USA Patriot Act, it is required to obtain, verify and record information that
identifies the Borrower, which information includes the name and address of the
Borrower and other information that will allow such Lender or Administrative
Agent, as applicable, to identify the Borrower in accordance with the USA
Patriot Act.

 

64

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

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

 

	
  ATTEST:

  	
   

  	
  THE DAYTON POWER AND LIGHT COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Frederick J. Boyle

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President, Chief Financial Officer, Treasurer and
  Controller

  

 

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  PNC BANK, NATIONAL ASSOCIATION,

  individually and as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Joseph Richardson

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  THE NORTHERN TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  U.S. BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  COMMERCE BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  James B. Forse

  
	
   

  	
  Title:

  	
  Regional Vice President

  

 

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  FIRST COMMONWEALTH BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  COMERICA BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

SCHEDULE 1.1(A)

 

PRICING GRID—

VARIABLE PRICING AND FEES BASED ON RATINGS

(PRICING EXPRESSED IN BASIS POINTS)

 

	
  Level

  	
   

  	
  S&P

  Rating

  	
   

  	
  Moody’s

  Rating

  	
   

  	
  Fitch

  Rating

  	
   

  	
  Facility

  Fee

  	
   

  	
  Revolving Credit

  Base Rate Spread

  	
   

  	
  Revolving Credit

  LIBOR Rate Spread

  	
   

  
	
  I

  	
   

  	
  A or higher

  	
   

  	
  A2 or higher

  	
   

  	
  A or higher

  	
   

  	
  25

  	
   

  	
  75

  	
   

  	
  175

  	
   

  
	
  II

  	
   

  	
  A-

  	
   

  	
  A3

  	
   

  	
  A-

  	
   

  	
  30

  	
   

  	
  100

  	
   

  	
  200

  	
   

  
	
  III

  	
   

  	
  BBB+

  	
   

  	
  Baa1

  	
   

  	
  BBB+

  	
   

  	
  35

  	
   

  	
  125

  	
   

  	
  225

  	
   

  
	
  IV

  	
   

  	
  BBB

  	
   

  	
  Baa2

  	
   

  	
  BBB

  	
   

  	
  40

  	
   

  	
  150

  	
   

  	
  250

  	
   

  
	
  V

  	
   

  	
  BBB-

  	
   

  	
  Baa3

  	
   

  	
  BBB-

  	
   

  	
  50

  	
   

  	
  175

  	
   

  	
  275

  	
   

  
	
  VI

  	
   

  	
  Lower than BBB-

  	
   

  	
  Lower than Baa3

  	
   

  	
  Lower than BBB-

  	
   

  	
  62.5

  	
   

  	
  200

  	
   

  	
  300

  	
   

  

 

If at any time each Rating Agency issues a different
rating, then the Applicable Facility Fee Rate and the Applicable Margin shall
be determined based on the intermediate rating at such time.  If at any time two Rating Agencies issue the
same rating, which is different than the other Rating Agency, the rating issued
by such other Rating Agency shall be disregarded, and the Applicable Facility
Fee Rate and the Applicable Margin shall be determined based on the two
identical ratings at such time.  If there
is no S&P Rating and Fitch Rating, then the Applicable Facility Fee Rate
and the Applicable Margin shall be determined based on the Moody’s Rating.  If there is no Moody’s Rating and Fitch
Rating, then the Applicable Facility Fee Rate and the Applicable Margin shall
be determined based on the S&P Rating. 
If there is no Moody’s Rating and S&P Rating, then the Applicable
Facility Fee Rate and the Applicable Margin shall be determined based on the
Fitch Rating.  If at any time only two
Rating Agencies issue a rating and there is a difference of two or more rating
levels between such Rating Agencies, then the Applicable Facility Fee Rate and
the Applicable Margin shall be determined based on the intermediate rating
levels at the midpoint between the ratings issued by such Rating Agencies at
such time or, if there is no midpoint, based on the higher intermediate
level.  If (i) there is no S&P
Rating, Moody’s Rating and Fitch Rating or (ii) an Event of Default has
occurred and is continuing, the Applicable Facility Fee Rate and the Applicable
Margin shall be the highest rate per annum indicated therefor in the above
table.  The S&P Rating, Moody’s
Rating and Fitch Rating in effect on any date for purposes of determining the
Applicable Facility Fee Rate and the Applicable Margin shall be that S&P
Rating, Moody’s Rating and Fitch Rating in effect at the close of business on
such date.  Each change in the Applicable
Facility Fee Rate and the Applicable Margin resulting from a publicly announced
change in the S&P Rating, the Fitch Rating and/or the Moody’s Rating shall
be effective during the period commencing on the date of the public
announcement thereof and ending on the date immediately preceding the effective
date of the next change.United States Securities & Exchange Commission EDGAR Filing

EXHIBIT 4.1

CORD BLOOD AMERICA, INC. 2009

 FLEXIBLE STOCK PLAN

ARTICLE I

NAME AND PURPOSE

                          

1.1

Name.  The name of the Plan is the "Cord Blood America, Inc. 2009 Flexible Stock Plan."

1.2

Purpose. The Company has established the Plan to attract, retain, motivate and reward Employees and other individuals, to encourage ownership of the Company's Common Stock by Employees and other individuals, and to promote and further the best interests of the Company.

ARTICLE II 

DEFINITIONS OF TERMS AND RULES OF CONSTRUCTION

2.1

General Definitions. The following words and phrases, when used in the Plan, unless otherwise specifically defined or unless the context clearly otherwise requires, shall have the following respective meanings:

A.

Agreement.  The document which evidences the grant of any Benefit under the Plan and which sets forth the Benefit and the terms, conditions and provisions of, and restrictions relating to, such Benefit.  

B.

Benefit.  Any benefit granted to a Participant under the Plan.

C.

Board.  The Board of Directors of the Company.

D.

Company.  Cord Blood America, Inc., a Florida Corporation

E.

Committee.  The Committee described in Section 5.1, or in the event that the Board of Directors does not appoint a Committee, then the Board of Directors.  

F.

Common Stock.  The Company's Common Stock, $0.0001 par value.

G.

Effective Date.  The date that the Plan is adopted by the Board of Directors.

H.

Employee.  Any person, consultant or professional employed by the Employer.

I.

Employer.  The Company and all Subsidiaries.

J.

Exchange Act.  The Securities Exchange Act of 1934, as amended.

K.

Fair Market Value.  The last reported sale price, regular way, of the Shares on any day or, in case no such reported sale takes place on such day, the average of the reported closing  bid and asked prices, regular way, in either case on the principal national securities exchange on which the Shares are listed or if the Shares are not listed on a national securities exchange and are listed on the NASDAQ Stock Market, the sale price determined in the same fashion or, if the  Shares are not so listed on any of the foregoing, the average of the bid and asked prices on such day as furnished by dealers in the Shares in the over-the-counter market. All calculations of the current market price shall be made to the nearest cent.

L.

Option.  An option to purchase Shares granted under the Plan. 

M.

Other Stock Based Award. An award under the Plan that is valued in whole or in part by reference to, or is otherwise based on, Common Stock.  

N.

Participant.  A person who is granted a Benefit under the Plan.  Benefits may be granted only to Employees, employees and owners of entities which are not Subsidiaries but which have a direct or indirect ownership interest in an Employer or in which an Employer has a direct or indirect ownership interest, persons who, and employees and owners of entities which, are customers and suppliers of an Employer, persons who, and employees and owners of entities which, render services to an Employer, and persons who, and employees and owners of entities, which have ownership or business affiliations with any persons or entity previously described.

O.

Performance Share.  A Share awarded to a Participant under ARTICLE XIV of the Plan.

P.

Plan.  The Cord Blood America, Inc. 2009 Flexible Stock Plan, and all amendments and supplements to it.

Q.

Restricted Stock.  Shares issued under ARTICLE XIII of the Plan.

R.

Share.  A share of Common Stock.

S.

Subsidiary.  Any corporation in an unbroken chain of corporations beginning with the Company if, at the time of grant of an Option or other Benefit, each of the corporations, other than the last corporation in the unbroken chain, owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.  

2.2

Other Definitions. In addition to the above definitions, certain words and phrases used in the Plan and any Agreement may be defined in other portions of the Plan or in such Agreement.

2.3

Conflicts in Plan.  In the case of any conflict in the terms of the Plan relating to a Benefit, the provisions in the ARTICLE of the Plan which specifically permits the grant of such Benefit shall control those in a different ARTICLE.  

ARTICLE III 

COMMON STOCK

                           

3.1

Number of Shares.  The number of Shares which may be issued or sold or for which Options or Performance Shares may be granted under the Plan is fixed at 70,000,000 Shares. At this date there are no shares issued and outstanding under this 2009 Flexible Stock Plan. Such Shares may be authorized but unissued Shares, or Shares held in the treasury, or both.  

3.2

Reusage.  If an Option expires or is terminated, surrendered, or canceled without having been fully exercised, if Restricted Shares or Performance Shares are forfeited, or if any other grant results in any Shares not being issued, the Shares covered by such Option, grant of Restricted Shares, Performance Shares or other grant, as the case may be, shall again be available for use under the Plan, to the fullest extent permitted under applicable law.  

3.3

Adjustments.  If there is any change in the Common Stock of the Company by reason of any stock dividend, spin-off, split-up, spin-out, recapitalization, merger, consolidation, reorganization, combination or exchange of shares, the number and class of shares available for Options and grants of Restricted Stock, Performance Shares and Other Stock Based Awards and the number of Shares subject to outstanding Options, grants of Restricted Stock and Performance Shares which are not vested, and Other Stock Based Awards, and the price thereof, as applicable, shall be appropriately adjusted by the Committee.  

ARTICLE IV 

ELIGIBILITY

4.1

Determined By Committee.  The Participants and the Benefits they receive under the Plan shall be determined solely by the Committee, or in the event the Board of Directors does not appoint a Committee, then by the Board of Directors  (hereinafter the Committee or the Board, if there is no Committee appointed, is referred to as the “Committee).  In making its determinations, the Committee shall consider past, present and expected future contributions of Participants and potential Participants to the Employer, including, without limitation, the performance of, or the refraining from the performance of, services.  

ARTICLE V 

ADMINISTRATION

5.1      Committee.  

A.

The Plan shall be administered by the Board of Directors of the Company, the Stock Option Committee of the Board or another committee of the Board, all as shall be determined by the Board.

B.

If the Board appoints a Committee, the Committee shall be comprised of not less than two persons, and each member of the Committee shall be a member of the Board who during the one year period prior to service on the Committee was, and during such service is, an “outside director,” as such term is utilized in Section 162(m) of the Internal Revenue Code, and a “non-employee director,” as such term is defined and utilized in Rule 16b-3 of the Exchange Act. Subject to the foregoing, the Board may from time to time appoint members of the Committee in substitution for or in addition to members previously appointed, may fill vacancies in the Committee and may remove members of the Committee, at the sole discretion of the Board of Directors.

C.

The Committee shall select one of its members as its chairman and shall hold its meetings at such times and places as it shall deem advisable. A majority of its members shall constitute a quorum and all determinations shall be made by a majority of such quorum. Any determination reduced to writing and signed by all of the members of the Committee shall be fully as effective as if it had been made by a majority vote at a meeting duly called and held.

5.2      Powers.

A.

The Board or the Committee, if so determined by the Board, shall have full power and authority, subject to such orders or resolutions not inconsistent with the provisions of the Plan as may from time to time be issued or adopted by the Board, to grant eligible persons Benefits under the Plan, to determine the restrictions, terms and conditions (which need not be identical) of all Benefits so granted, to interpret the provisions of the Plan and any Agreements relating to Benefits granted under the Plan, and to supervise the administration of the Plan.

B.

The Board or the Committee, if the Board shall so determine, shall have sole authority in the selection of directors, officers and employees of the Company or a Subsidiary, and any consultant, advisor or independent contractor to the Company or a Subsidiary, to whom Awards may be granted under the Plan and in the determination of the timing, pricing, terms, conditions, restrictions and amount of any such Award, subject only to the express provisions of the Plan.

C.

Without limiting the generality of the above Sections, the Board or the Committee shall have the authority to condition any Award, in whole or in part, on performance or other criteria established by the Board or the Committee at the time of grant. In making determinations hereunder, the Board or the Committee may take into account the nature of the services rendered by the respective directors, officers, employees, consultants, advisors or independent contractors, their present and potential contributions to the success of the Company and its Subsidiaries and such other factors as the Board or the Committee in its discretion deems relevant, and may consult with, and give such consideration to the recommendations of, management of the Company as the Board or Committee deems desirable.

5.3

Interpretation.  The Board or the Committee is authorized, subject to the provisions of the Plan, to establish, amend and rescind such rules and regulations as it deems necessary or advisable for the proper administration of the Plan and to take such other action in connection with or in relation to the Plan as it deems necessary or advisable. Each action and determination made or taken pursuant to the Plan by the Board or the Committee, including any interpretation or construction of the Plan, shall be final and conclusive for all purposes and upon all persons. No member of the Board or the Committee shall be liable for any action or determination made or taken by him or the Board or the Committee in good faith with respect to the Plan.

ARTICLE VI 

AMENDMENT

6.1

Power of Board.  Except as hereinafter provided, the Board shall have the sole right and power to amend the Plan at any time and from time to time.

ARTICLE VII

TERM AND TERMINATION

7.1

Term.  The Plan shall commence as of the Effective Date, and, subject to the terms of the Plan, including those limiting the period over which Benefits may be granted, shall continue in full force and effect until terminated.  

7.2

Termination.  The Plan may be terminated at any time by the Board.  

ARTICLE VIII

MODIFICATION OR TERMINATION OF BENEFITS

             

8.1

General.  Subject to the provisions of Section 8.2, the amendment or termination of the Plan shall not adversely affect a Participant's right to any Benefit granted prior to such amendment or termination.  

8.2 

Committee's Right.  Any Benefit granted may be converted, modified, forfeited or canceled, in whole or in part, by the Committee if and to the extent permitted in the Plan or applicable Agreement, or in the grant of the benefit, or with the consent of the Participant to whom such Benefit was granted.  

ARTICLE IX 

AGREEMENTS AND CERTAIN BENEFITS

9.1

Grant Evidenced by Agreement.  The grant of any Benefit under the Plan may be evidenced by an Agreement which shall describe the specific Benefit granted and the terms and conditions of the Benefit or may be evidenced by adoption of a Board Resolution.  The granting of any Benefit shall be subject to, and conditioned upon, the recipient's execution of any Agreement required by the Committee.  Except as otherwise provided in an Agreement, all capitalized terms used in the Agreement shall have the same meaning as in the Plan and theAgreement shall be subject to all of the terms of the Plan.

9.2

Provisions of Agreement.  Any Agreement shall contain such provisions  that the Committee shall determine to be necessary, desirable and appropriate for the Benefit granted which may include, but not be limited to, the following with 

respect to any Benefit:  description of the type of Benefit; the Benefit's duration; its transferability; if an Option, the exercise price, the exercise period and the person or persons who may exercise the Option; the effect upon such Benefit of the Participant's death or termination of employment; the Benefit's conditions; when, if, and how any Benefit may be forfeited, converted into another Benefit, modified, exchanged for another Benefit or replaced; and the restrictions on any Shares purchased or granted under the Plan.

9.3

Certain Benefits.  Any Benefit granted to an individual who is subject to Section 16 of the Exchange Act shall be not transferable other than by will or the laws of descent and distribution and shall be exercisable during his lifetime only by him, his guardian or his legal representative.  

                

ARTICLE X 

REPLACEMENT AND TANDEM AWARDS

10.1

Replacement.  The Committee may permit a Participant to elect to surrender a Benefit in exchange for a new Benefit.  

10.2

Tandem Awards.  Awards may be granted by the Committee in tandem.  

ARTICLE XI

PAYMENT, DIVIDENDS, DEFERRAL AND WITHHOLDING

11.1

Payment.  Upon the exercise of an Option or in the case of any other Benefit that requires a payment to the Company, the amount due the Company is to be paid:

A.

in cash;

B.

by the tender to the Company of Shares owned by the optionee and registered in his name having a Fair Market Value equal to the amount due to the Company;

C.

by credit by the receipt for a Retainer due and payable under a contract executed by the Company;

D.

in other property, rights and credits, including the Participant's promissory

E.

note; or

F.

by any combination of the payment methods specified in (a), (b) and (c) above.

Notwithstanding the foregoing, any method of payment other than (a) may be used only with the consent of the Committee (or if and to the extent so provided in an Agreement).  The proceeds of the Sale of Common Stock purchased pursuant to an Option and any payment to the Company for other Benefits shall be added to the general funds of the Company or to the Shares held in treasury, as the case may be, and used for the corporate purposes of the Company as the Board shall determine.

11.2 

Dividend Equivalents.  Grants of Benefits in Shares or Share equivalents may include dividend equivalent payments or dividend credit rights.  

11.3

Deferral.  The right to receive any Benefit under the Plan may, at the request of the Participant, be deferred for such period and upon such terms as the Committee shall determine, which may include crediting of interest on deferrals of cash and crediting of dividends on deferrals denominated in Shares.  

11.4

Withholding.  The Company, at the time any distribution is made under the Plan, whether in cash or in Shares, may at its discretion withhold from such distribution any amount necessary to satisfy federal, state and local  income tax withholding requirements with respect to such distribution. Such withholding shall be in cash or, in the Committee's sole discretion, Shares.  

ARTICLE XII 

OPTIONS

                             

12.1

Determination by Committee.  The terms of all Options shall be determined by the Committee.  

ARTICLE XIII

RESTRICTED STOCK

13.1

Description.  The Committee may grant Benefits in Shares available under ARTICLE III of the Plan as Restricted Stock.  Shares of Restricted Stock shall be issued and delivered at the time of the grant.  Each certificate representing Shares of Restricted Stock shall bear a restrictive legend stating that such Shares are nontransferable until all restrictions have been satisfied (and such other legend as may be required in connection with any Agreement relating to the issuance under the Plan).  The grantee shall be entitled to full voting and dividend rights with respect to all shares of Restricted Stock from the date of grant.

13.2

Non-Transferability.  Shares of Restricted Stock shall not be transferable until after the removal of the legend with respect to such Shares.  

ARTICLE XIV

PERFORMANCE SHARES

                        

14.1

Description.  Performance Shares are the right of an individual to whom a grant of such Shares is made to receive Shares or cash equal to the Fair Market Value of such Shares at a future date in accordance with the terms of such grant.  Generally, such right shall be based upon the attainment of targeted profit   and/or performance objectives.

14.2

Grant.  The Committee may grant an award of Performance Shares.  The number of Performance Shares and the terms and conditions of the grant shall be set forth in an applicable Agreement.

ARTICLE XV 

FORM S-8 REGISTERED STOCK 

15.1

Description.  The Committee may grant Benefits in the form of the issuance of Shares available under ARTICLE III of the Plan, to be issued after filing and effectiveness of an S-8 Registration Statement filed under the Securities Act of 1933 registering such shares, either specifically or as part of a Plan wide registration of shares.  The issuance of all such shares shall be in accord with the rules and regulations associated with the use of an S-8 Registration Statement adopted by the Securities and Exchange Commission as amended, and the terms set forth in the S-8 Registration as filed.

ARTICLE XVI 

OTHER STOCK BASED AWARDS AND OTHER BENEFITS

16.1

Other Stock Based Awards.  The Committee shall have the right to grant Other Stock Based Awards which may include, without limitation, the grant of Shares based on certain conditions, the payment of cash based on the performance of the Common Stock, and the grant of securities convertible into Shares.

16.2

Other Benefits.  The Committee shall have the right to provide types of Benefits under the Plan in addition to those specifically listed, if the Committee believes that such Benefits would further the  purposes for which the Plan was established.

ARTICLE XVII

MISCELLANEOUS PROVISIONS

17.1

Underscored References.  The underscored references contained in the Plan are included only for convenience, and they shall not be construed as a part of the Plan or in any respect affecting or modifying its provisions.

17.2

Number and Gender.  The masculine and neuter, wherever used in the Plan, shall refer to either the masculine, neuter or feminine; and, unless the context otherwise requires, the singular shall include the plural and the plural the singular.

17.3

Governing Law.  This Plan shall be construed and administered in accordance with the laws of the State of Florida.  

17.4

Purchase for Investment.  The Committee may require each person purchasing Shares pursuant to an Option,  or receiving shares under an award under the Plan to represent to and agree with the Company in writing that such person is acquiring the Shares for investment and without a view to distribution or resale.  The certificates for such Shares may include any legend which the Committee deems appropriate to reflect any restrictions on transfer.  All certificates for Shares delivered under the Plan shall be subject to such stock-transfer orders and other restrictions as the Committee may deem advisable under all applicable laws, rules and regulations, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate references to such restrictions.

17.5

No Employment Contract.  The adoption of the Plan shall not confer upon any Employee any right to continued employment nor shall it interfere in any way with the right of the Employer to terminate the employment of any of its Employees at any time.

17.6

No Effect on Other Benefits.  The receipt of Benefits under the Plan shall have no effect on any benefits to which a Participant may be entitled from the Employer, under another plan or otherwise, or preclude a Participant from receiving any such benefits.

Undersigned, the Secretary of Cord Blood America, Inc., hereby certifies that this Cord Blood America, Inc 2009 Flexible Stock Plan was duly adopted by the Board of Directors of the Corporation, effective as of April 23, 2009.

Date: April ____, 2009

/s/ Matthew L. Schissler 

    Matthew L. Schissler, Chief Executive Officer

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