Document:

EX-10.1

 

Dated
20
June 2007

SEQUA CORPORATION

(as Obligors’ Agent and as a Guarantor)

THE COMPANIES

listed in part 1 of schedule 1

(acting by the Obligors’ Agent)

HSBC BANK PLC

as Mandated Lead Arranger

HSBC BANK PLC

as Original Fronting Bank

THE FINANCIAL INSTITUTIONS

listed in part 2 of schedule 1

HSBC BANK PLC

as Agent

HSBC BANK PLC

as Security Trustee

 

AMENDMENT AND RESTATEMENT

AGREEMENT RELATING TO A

FACILITIES AGREEMENT DATED

21 DECEMBER 2005

 

 

 

Contents

	 	 	 	 	 	 	 
	 	 	Clause	 	Page	 
	1
	 	Definitions and interpretation	 	 	0	 
	2
	 	Restatement	 	 	1	 
	3
	 	Representations	 	 	2	 
	4
	 	Continuity and further assurance	 	 	2	 
	5
	 	Fees, costs and expenses	 	 	2	 
	6
	 	Miscellaneous	 	 	3	 
	 
	 	 	 	 	 	 
	 
	 	Schedule	 	 	 	 
	 
	 	 	 	 	 	 
	1
	 	The Parties	 	 	4	 
	 
	 	Part 1 - The Obligors	 	 	4	 
	 
	 	Part 2 - The Original Lender	 	 	5	 
	2
	 	Conditions precedent	 	 	6	 
	3
	 	Restated Agreement	 	 	8	 
	4
	 	Conditions subsequent	 	 	9	 
	 
	 	Part 1	 	 	9	 
	 
	 	Part 2	 	 	9	 

 

 

This
Agreement is dated 20 June, 2007

Between

	(1)	 	Sequa Corporation, a company incorporated in the United States of America in its capacity as
agent for the Obligors (Obligors’ Agent);
	 
	(2)	 	The Companies listed in part 1 (The Obligors) of schedule 1 as borrowers (Borrowers);
	 
	(3)	 	The Companies listed in part 1 (The Obligors) of schedule 1 as original guarantors (Original
Guarantors);
	 
	(4)	 	HSBC Bank plc as mandated lead arranger (Arranger);
	 
	(5)	 	HSBC Bank plc as fronting bank (Fronting Bank);
	 
	(6)	 	The Financial Institutions listed in part 2 (The Original Lenders) of schedule 1 as original
lenders (Original Lenders);
	 
	(7)	 	HSBC Bank plc as agent of the other Finance Parties (Agent); and
	 
	(8)	 	HSBC Bank plc as security trustee for the Finance Parties (Security Trustee).

It is agreed

	1	 	Definitions and interpretation
	 
	1.1	 	Definitions

In this Agreement:

Original Facilities Agreement means the facilities agreement dated 21 December 2005 between
the Parties

Party means a party to this Agreement

Restated Agreement means the Original Facilities Agreement, as amended by this Agreement,
the terms of which are set out in schedule 3 (Restated Agreement)

Restatement Date means the date upon which the Agent gives the notification referred to in
clause 2.2(a) (Conditions precedent)

	1.2	 	Interpretation

	 	(a)	 	Unless otherwise defined in this Agreement, a term defined in the Original
Facilities Agreement has the same meaning when used in this Agreement or any notices,
acknowledgements or other documents issued under or in connection with this Agreement.
	 
	 	(b)	 	Clause 1.2 (Interpretation) of the Original Facilities Agreement is
incorporated in this Agreement as if set out here in full but so that each reference in
that clause to this Agreement shall be read as a reference to this Agreement.

 

 

	1.3	 	Third Party Rights

	 	(a)	 	Unless expressly provided to the contrary in any Finance Document, a person who
is not a Party has no right under the Contracts (Rights of Third Parties) Act 1999 to
enforce or enjoy the benefit of any term of this Agreement or any other Finance
Document issued or entered into under or in connection with it.
	 
	 	(b)	 	Unless expressly provided to the contrary in any Finance Document the consent
of any person who is not a Party is not required to rescind or vary this Agreement or
any other Finance Document entered into under or in connection with it.

	2	 	Restatement
	 
	2.1	 	Restatement of the Original Facilities Agreement
	 
	 	 	With effect from and including the Restatement Date, the Original Facilities Agreement shall
be amended and restated so that it shall be read and construed for all purposes as set out
in schedule 3 (Restated Agreement).
	 
	2.2	 	Conditions precedent

	 	(a)	 	The Agent shall notify the Obligors’ Agent promptly in writing when it has
received or waived the requirement to receive all the documents and other evidence
listed in schedule 2 (Conditions precedent) of this Agreement in form and substance
satisfactory to the Agent.
	 
	 	(b)	 	The Agent shall not be obliged to issue the notice referred to in clause 2.2(a)
if:

	 	(i)	 	a Default is continuing or would result from the restatement of
the Original Facilities Agreement pursuant to clause 2.1; or
	 
	 	(ii)	 	the representations in clause 3 (Representations) to be made by
each Obligor are not true.

	2.3	 	Failure to satisfy conditions precedent
	 
	 	 	If the Restatement Date has not occurred on or before 8 June 2007 (or any later date which
the Agent (acting on the instructions of the Majority Lenders) and the Obligors’ Agent may
agree), then clause 2 (other than this clause 2.3) and clause 4.1 (Continuing obligations)
will cease to have effect and none of the amendments referred to in clause 2.1 shall take
effect. The Obligors’ Agent shall, however, remain liable to the Finance Parties for all
fees, costs and expenses pursuant to clause 5 (Fees, costs and expenses).
	 
	2.4	 	Conditions subsequent
	 
	 	 	The Obligors’ Agent shall procure that:

	 	(a)	 	the conditions subsequent set out in part I of schedule 4 are satisfied in full
by not later than the date falling 3 months from the date of this Agreement; and
	 
	 	(b)	 	the conditions subsequent set out in part 2 of schedule 4 are satisfied in full
by not later than the date falling 6 months from the date of this Agreement.

 

 

	2.5	 	Security confirmation
	 
	 	 	Each Obligor confirms that its liabilities and obligations arising under the Restated
Agreement shall form part of (but do not limit) the obligations and liabilities that are
secured by each of the Security Documents to which such Obligor is a party and that Security
granted by each Obligor pursuant to the Security Documents to which it is a party shall
cover (without limitation) the obligations and liabilities under the Restated Agreement.
	 
	2.6	 	Guarantee confirmation
	 
	 	 	Each Guarantor confirms that the guarantee contained in clause 21 (Guarantee and Indemnity)
of the Original Facilities Agreement continues in full force and effect and shall cover
(without limitation) the obligations and liabilities of the Obligors under the Restated
Agreement.
	 
	3	 	Representations
	 
	 	 	Each Obligor makes the Repeating Representations by reference to the facts and circumstances
then existing:

	 	(a)	 	on the date of this Agreement; and
	 
	 	(b)	 	on the Restatement Date.

	4	 	Continuity and further assurance
	 
	4.1	 	Continuing obligations
	 
	 	 	The provisions of the Original Facilities Agreement and the other Finance Documents shall,
save as amended by this Agreement, continue in full force and effect.
	 
	4.2	 	Further assurance
	 
	 	 	Each Obligor shall promptly do all such acts or execute all such documents as the Agent may
reasonably specify (and in such form as the Agent may reasonably require in favour of it or
any other Finance Party) to give effect to the amendments effected or to be effected
pursuant to this Agreement.
	 
	5	 	Fees, costs and expenses
	 
	5.1	 	The Obligors’ Agent shall, within 3 Business Days of demand, reimburse each Finance Party,
for the amount of all costs and expenses (including legal fees) reasonably incurred by that
Finance Party in connection with the negotiation, preparation, printing, execution and
perfection of this Agreement and any other documents referred to in this Agreement.
	 
	5.2	 	The Obligors shall pay and, within 3 Business Days of demand, indemnify each Finance Party
against any cost, loss or liability that Finance Party incurs in relation to all stamp duty,
registration and other similar Taxes payable in respect of this Agreement.
	 
	5.3	 	The Obligors’ Agent shall pay the fees in the amounts and at the times agreed in a Fee Letter.

 

 

	6	 	Miscellaneous
	 
	6.1	 	Incorporation of terms
	 
	 	 	Clauses 34 (Notices), 40 (Governing Law) and 41 (Enforcement) of the Original Facilities
Agreement shall be deemed to be incorporated into this Agreement (with such conforming
changes as the context requires) as if set out in full in this Agreement.
	 
	6.2	 	Counterparts
	 
	 	 	This Agreement or any Finance Document entered into under or in connection with this
Agreement may be executed in any number of counterparts and this has the same effect as if
the signatures on the counterparts were on a single copy of this Agreement or such Finance
Document.
	 
	6.3	 	Finance Document
	 
	 	 	Each of this Agreement and the Restated Agreement is a Finance Document.

This Agreement has been entered into on the date given at the beginning of this Agreement.

 

 

Schedule 1

The Parties

Part 1 — The Obligors

	 	 	 
	Name of Borrower

	 	Registration number (or equivalent, if
any) Jurisdiction of Incorporation
	 
	 	 
	Warwick International Group Limited

	 	England (2982784)
	 
	 	 
	Chromalloy United Kingdom Limited

	 	England (971349)
	 
	 	 
	Chromalloy Holland B.V.

	 	The Netherlands (1803091)
	 
	 	 
	Name of Guarantor

	 	Registration number (or equivalent, if
any) Jurisdiction of Incorporation
	 
	 	 
	Sequa Corporation

	 	Delaware, USA (tax I.D. number 13-885030)
	 
	 	 
	Warwick International Group Limited

	 	England (2982784)
	 
	 	 
	Chromalloy United Kingdom Limited

	 	England (971349)
	 
	 	 
	Chromalloy Holland B.V.

	 	The Netherlands (1803091)
	 
	 	 
	Sequa Limited

	 	England (2982757)
	 
	 	 
	Chromalloy Metal Tectonics Limited

	 	England (1519807)
	 
	 	 
	Chromalloy Gas Turbine Europa B.V.

	 	The Netherlands (18019311)
	 
	 	 
	Chromalloy (Thailand) Limited

	 	Thailand (9768/2532)
	 
	 	 
	Chromalloy Holding (Thailand) Limited

	 	Thailand (0137 354811369)

 

 

Part 2 — The Original Lender

Name of Original Lender

HSBC Bank plc

 

 

Schedule 2

Conditions precedent

	1	 	Obligors

	 	(a)	 	A copy of the constitutional documents of the Obligors’ Agent and each Obligor
or a certificate of an authorised signatory of the Obligors’ Agent certifying that the
constitutional documents previously delivered to the Agent for the purposes of the
Original Facilities Agreement have not been amended and remain in full force and
effect.
	 
	 	(b)	 	A copy of a resolution of the board or, if applicable, a committee of the board
of directors of the Obligors’ Agent:

	 	(i)	 	approving the terms of, and the transactions contemplated by,
this Agreement and resolving that it execute, deliver and perform this
Agreement;
	 
	 	(ii)	 	authorising a specified person or persons to execute this
Agreement on its behalf;
	 
	 	(iii)	 	authorising a specified person or persons, on its behalf, to
sign and/or despatch all documents and notices to be signed and/or despatched
by it under or in connection with this Agreement.

	 	(c)	 	If applicable, a copy of a resolution of the board of directors of the relevant
company, establishing the committee referred to in paragraph 1(b) above.
	 
	 	(d)	 	A specimen of the signature of each person authorised by the resolution
referred to in paragraph 1(b) above in relation to this Agreement and related
documents.
	 
	 	(e)	 	A certificate from a director of the Obligors’ Agent confirming that borrowing
or guaranteeing or securing, as appropriate, the Total Commitments by each Obligor
would not cause any borrowing, guarantee, security or similar limit binding on any
Obligor to be exceeded.
	 
	 	(f)	 	A certificate from a director of the Obligors’ Agent certifying that each copy
document relating to it and each other Obligor specified in this schedule 2 is correct,
complete and in full force and effect and has not been amended, varied, novated,
supplemented, superseded or terminated as at a date no earlier than the date of this
Agreement.
	 
	 	(g)	 	A certificate from an officer of Sequa regarding due execution of documents.

	2	 	Amendment and restatement Agreement
	 
	 	 	This Agreement executed by the Obligors’ Agent (for itself and on behalf of each Obligor who
is a Party).
	 
	3	 	Other documents and evidence

	 	(a)	 	Evidence that the fees, costs and expenses then due from the Obligors’ Agent
pursuant to clause 5 (Fees, costs and expenses) and have been paid or will be paid by
the Restatement Date.

 

 

	 	(b)	 	A copy of any other Authorisation or other document, opinion or assurance which
the Agent notifies the Obligors’ Agent is necessary in connection with the entry into
and performance of the transactions contemplated by this Agreement or for the validity
and enforceability of this Agreement.
	 
	 	(c)	 	A Transfer Certificate under the Original Facilities Agreement duly executed by
Barclays Bank PLC.
	 
	 	(d)	 	Evidence that Barclays Bank PLC has resigned as Arranger, Agent and Security
Agent, and of the appointment of HSBC Bank plc as Arranger, Agent and Security Agent.
	 
	 	(e)	 	A Fee Letter executed by the Obligors’ Agent.
	 
	 	(f)	 	A Transfer Certificate under the Restated Agreement duly executed by HSBC Bank
plc and HSBC Bank USA, National Association, transferring a $10,000,000 participation
in Facility C to HSBC Bank USA, National Association.

 

 

Schedule 3

Restated Agreement

 

 

Schedule 4

Conditions subsequent

Part 1

	1	 	A copy of each consent from the Bank of Thailand in respect of each Guarantor incorporated in
Thailand remitting funds out of Thailand.
	 
	2	 	The Original Financial Statements of Chromalloy Metal Tectonics Limited.
	 
	3	 	Evidence of re-registration of the security right (in favour of HSBC Bank plc (as security
trustee)) in a land and buildings mortgage agreement dated 4 May 2006 regarding the Major Thai
Real Estate made between Chromalloy (Thailand) Limited (1) and Barclays Bank PLC (as security
trustee) (2).

Part 2

	1	 	Chromalloy (Thailand) Limited shall ensure that all of its machinery which (i) is eligible
for registration for a certificate of machinery ownership under Thai law and (ii) is necessary
and material for the conduct of its business shall be registered pursuant to Thai law with the
relevant Thai government agency.
	 
	2	 	A Thai law mortgage of machinery by Chromalloy (Thailand) Limited, duly executed, delivered
and perfected by the Parties to it.
	 
	3	 	A copy of any other documents or evidence required to perfect the Security created or to be
created under or pursuant to the Security Documents referred to in paragraph 2 above in
accordance with applicable law.
	 
	4	 	A legal opinion from a firm of lawyers in Thailand acceptable to the Agent in respect of the
Security Document referred to in paragraph 2 above.

 

 

	 	 	 	 	 
	SIGNATURES	 	 
	 
	 	 	 	 
	THE OBLIGORS’ AGENT	 	 
	 
	 	 	 	 
	SEQUA CORPORATION	 	 
	 
	 	 	 	 
	By
	 	/s/
James P. Langelotti	 	 
	 

	 	 	 	 
	Name: James P. Langelotti	 	 
	Title: Vice President and Treasurer	 	 
	 
	 	 	 	 
	THE BORROWERS	 	 
	 
	 	 	 	 
	WARWICK INTERNATIONAL GROUP LIMITED	 	 
	 
	 	 	 	 
	By Sequa Corporation (as Obligors’ Agent
pursuant to clause 2.3 (Obligors’ Agent) of
the Original Facilities Agreement) acting by	 	 
	 
	/s/ James P. Langelotti
	 	 
	 	 	 
	Name: James P. Langelotti	 	 
	Title: Vice President and Treasurer	 	 
	 
	 	 	 	 
	CHROMALLOY UNITED KINGDOM LIMITED	 	 
	 
	 	 	 	 
	By Sequa Corporation (as Obligors’ Agent
pursuant to clause 2.3 (Obligors’ Agent) of
the Original Facilities Agreement) acting by	 	 
	 
	 	 	 	 
	/s/ James P. Langelotti
	 	 
	 	 	 
	Name: James P. Langelotti	 	 
	Title: Vice President and Treasurer	 	 
	 
	 	 	 	 
	CHROMALLOY HOLLAND B.V.	 	 
	 
	 	 	 	 
	By Sequa Corporation (as Obligors’ Agent
pursuant to clause 2.3 (Obligors’ Agent) of
the Original Facilities Agreement) acting by	 	 
	 
	 	 	 	 
	/s/ James P. Langelotti
	 	 
	 	 	 
	Name: James P. Langelotti	 	 
	Title: Vice President and Treasurer	 	 

 

 

	 	 	 	 	 
	THE GUARANTORS	 	 
	 
	 	 	 	 
	SEQUA CORPORATION	 	 
	 
	 	 	 	 
	By
	 	/s/ James P. Langelotti	 	 
	 

	 	 	 	 
	Name: James P. Langelotti	 	 
	Title: Vice President and Treasurer	 	 
	 
	 	 	 	 
	WARWICK INTERNATIONAL GROUP LIMITED	 	 
	 
	 	 	 	 
	By Sequa Corporation (as Obligors’ Agent
pursuant to clause 2.3 (Obligors’ Agent) of
the Original Facilities Agreement) acting by	 	 
	 
	 	 	 	 
	/s/ James P. Langelotti
	 	 
	 	 	 
	Name: James P. Langelotti	 	 
	Title: Vice President and Treasurer	 	 
	 
	 	 	 	 
	CHROMALLOY UNITED KINGDOM LIMITED	 	 
	 
	 	 	 	 
	By Sequa Corporation (as Obligors’ Agent
pursuant to clause 2.3 (Obligors’ Agent) of
the Original Facilities Agreement) acting by	 	 
	 
	 	 	 	 
	/s/ James P. Langelotti
	 	 
	 	 	 
	Name: James P. Langelotti	 	 
	Title: Vice President and Treasurer	 	 
	 
	 	 	 	 
	CHROMALLOY HOLLAND B.V.	 	 
	 
	 	 	 	 
	By Sequa Corporation (as Obligors’ Agent
pursuant to clause 2.3 (Obligors’ Agent) of
the Original Facilities Agreement) acting by	 	 
	 
	 	 	 	 
	/s/ James P. Langelotti
	 	 
	 	 	 
	Name: James P. Langelotti	 	 
	Title: Vice President and Treasurer	 	 

 

 

	 	 	 	 	 
	SEQUA LIMITED	 	 
	 
	 	 	 	 
	By Sequa Corporation (as Obligors’ Agent
pursuant to clause 2.3 (Obligors’ Agent) of
the Original Facilities Agreement) acting by	 	 
	 
	 	 	 	 
	/s/ James P. Langelotti
	 	 
	 	 	 
	Name: James P. Langelotti	 	 
	Title: Vice President and Treasurer	 	 
	 
	 	 	 	 
	CHROMALLOY METAL TECTONICS LIMITED	 	 
	 
	 	 	 	 
	By Sequa Corporation (as Obligors’ Agent
pursuant to clause 2.3 (Obligors’ Agent) of
the Original Facilities Agreement) acting by	 	 
	 
	 	 	 	 
	/s/ James P. Langelotti
	 	 
	 	 	 
	Name: James P. Langelotti	 	 
	Title: Vice President and Treasurer	 	 
	 
	 	 	 	 
	CHROMALLOY GAS TURBINE EUROPA B.V	 	 
	 
	 	 	 	 
	By Sequa Corporation (as Obligors’ Agent
pursuant to clause 2.3 (Obligors’ Agent) of
the Original Facilities Agreement) acting by	 	 
	 
	 	 	 	 
	/s/ James P. Langelotti
	 	 
	 	 	 
	Name: James P. Langelotti	 	 
	Title: Vice President and Treasurer	 	 
	 
	 	 	 	 
	CHROMALLOY (THAILAND) LIMITED	 	 
	 
	 	 	 	 
	By Sequa Corporation (as Obligors’ Agent
pursuant to clause 2.3 (Obligors’ Agent) of
the Original Facilities Agreement) acting by	 	 
	 
	 	 	 	 
	/s/ James P. Langelotti
	 	 
	 	 	 
	Name: James P. Langelotti	 	 
	Title: Vice President and Treasurer	 	 

 

 

	 	 	 	 	 
	CHROMALLOY HOLDING (THAILAND) LIMITED	 	 
	 
	 	 	 	 
	By Sequa Corporation (as Obligors’ Agent
pursuant to clause 2.3 (Obligors’ Agent) of
the Original Facilities Agreement) acting by	 	 
	 
	 	 	 	 
	/s/ James P. Langelotti
	 	 
	 	 	 
	Name: James P. Langelotti	 	 
	Title: Vice President and Treasurer	 	 

	 	 	 	 	 
	THE ARRANGER
	 	 	 	 
	 
	 	 	 	 
	HSBC BANK PLC
	 	 	 	 
	 
	 	 	 	 
	Signed by

	 	 	)	 
	for and on behalf of

	 	 	)	/s/
David W. Y. Koh

	HSBC Bank plc

	 	 	)	 
	 
	 	 	 	 
	THE ORIGINAL LENDER
	 	 	 	 
	 
	HSBC BANK PLC
	 	 	 	 
	 
	 	 	 	 
	Signed by

	 	 	)	 
	for and on behalf of

	 	 	)	/s/
David W. Y. Koh

	HSBC Bank plc

	 	 	)	 
	 
	 	 	 	 
	FRONTING BANK
	 	 	 	 
	 
	 	 	 	 
	HSBC BANK PLC
	 	 	 	 
	 
	 	 	 	 
	Signed by

	 	 	)	 
	for and on behalf of

	 	 	)	/s/
David W. Y. Koh

	HSBC Bank plc

	 	 	)	 

 

 

	 	 	 	 	 
	THE AGENT
	 	 	 	 
	 
	 	 	 	 
	HSBC BANK PLC
	 	 	 	 
	 
	 	 	 	 
	Signed by

	 	 	)	 
	for and on behalf of

	 	 	)	 
	HSBC Bank plc

	 	 	)	/s/
David W. Y. Koh

	as Agent for and on behalf of the

	 	 	)	 
	Obligors and the Finance Parties

	 	 	)	 
	 
	 	 	 	 
	THE SECURITY TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	HSBC BANK PLC
	 	 	 	 
	 
	 	 	 	 
	Signed by

	 	 	)	 
	for and on behalf of

	 	 	)	/s/
David W. Y. Koh

	HSBC Bank plc

	 	 	)	 

 

 

CONFORMED COPY

(AS AMENDED BY AN AMENDMENT

AGREEMENT DATED 19 June 2007)

Dated 21 December 2005

WARWICK INTERNATIONAL GROUP LIMITED

CHROMALLOY UNITED KINGDOM LIMITED

CHROMALLOY HOLLAND B.V.

HSBC BANK PLC

as Arranger

HSBC BANK PLC acting as Agent

HSBC BANK PLC acting as Security Agent

 

FACILITY AGREEMENT

U.S. $93,600,000

 

Addleshaw Goddard

 

 

Contents

	 	 	 	 	 
	 	 	Clause	 	Page
	1
	 	Definitions and interpretation	 	1
	2
	 	The Facilities	 	23
	3
	 	Purpose	 	25
	4
	 	Conditions of Utilisation	 	25
	5
	 	Utilisation – Loans	 	26
	6
	 	Utilisation – Letters of Credit	 	28
	7
	 	Letters of Credit	 	31
	8
	 	Optional Currencies	 	35
	9
	 	Ancillary Facilities	 	37
	10
	 	Repayment	 	40
	11
	 	Prepayment and cancellation	 	42
	12
	 	Interest	 	46
	13
	 	Interest Periods	 	49
	14
	 	Changes to the calculation of interest	 	50
	15
	 	Fees	 	51
	16
	 	Tax gross-up and indemnities	 	52
	17
	 	Increased Costs	 	57
	18
	 	Other indemnities	 	58
	19
	 	Mitigation by the Lenders	 	59
	20
	 	Costs and expenses	 	59
	21
	 	Guarantee and indemnity	 	60
	22
	 	Representations	 	64
	23
	 	Information undertakings	 	72
	24
	 	Financial covenants	 	77
	25
	 	General undertakings	 	81
	26
	 	Events of Default	 	92
	27
	 	Changes to the Lenders	 	96
	28
	 	Changes to the Obligors	 	101
	29
	 	Role of the Agent, the Security Agent and the Arranger	 	103
	30
	 	Conduct of business by the Finance Parties	 	108
	31
	 	Sharing among the Finance Parties	 	109
	32
	 	Payment mechanics	 	110
	33
	 	Set-off	 	114
	34
	 	Notices	 	114
	35
	 	Calculations and certificates	 	116
	36
	 	Partial invalidity	 	116
	37
	 	Remedies and waivers	 	116
	38
	 	Amendments and waivers	 	117
	39
	 	Counterparts	 	118
	40
	 	Governing law	 	118
	41
	 	Enforcement	 	118
	 
	 	 	 	 
	 
	 	Schedule	 	 
	 
	 	 	 	 
	1
	 	The Original Parties	 	119
	 
	 	Part 1 - The Original Obligors	 	119
	 
	 	Part 2 - The Original Lender	 	120
	 
	 	Part 1 - Conditions Precedent to Initial Utilisation	 	121
	 
	 	Part 2 - Conditions Precedent to be Delivered by an Additional Guarantor	 	124

 

 

	 	 	 	 	 
	 	 	Clause	 	Page
	2
	 	Requests	 	127
	 
	 	Part 1 - Utilisation Request	 	127
	 
	 	Part 2 - Selection Notice Applicable to a Facility Loan	 	128
	 
	 	Part 3 - Utilisation Request Letter of Credit	 	129
	 
	 	Part 4 - Ancillary Facility Request	 	130
	3
	 	Mandatory Cost Formulae	 	131
	4
	 	Form of Transfer Certificate	 	134
	5
	 	Form of Guarantor or Borrower Accession Letter	 	137
	6
	 	Form of Compliance Certificate	 	142
	7
	 	Existing Security	 	143
	8
	 	Timetables	 	144
	 
	 	Part 1 - Loans	 	144
	 
	 	Part 2 - Letters of Credit	 	145
	9
	 	Letters of Credit	 	147
	10
	 	To Letter of Credit Form of Demand	 	149
	11
	 	Form of Hedging Bank Accession Letter	 	150
	12
	 	Form of Fronting Bank Accession Letter	 	151
	13
	 	Form of Resignation Letter	 	152
	14
	 	Existing Letters of Credit	 	153
	15
	 	Conditions Subsequent	 	154

 

 

This Facility Agreement is made on 21 December 2005

Between

	(1)	 	Sequa Corporation a company incorporated in the United States of America (Sequa);
	 
	(2)	 	The Companies listed in part 1 of schedule 1 (the Original Parties) as borrowers (Original
Borrowers);
	 
	(3)	 	The Companies listed in part 1 of schedule 1 (the Original Parties) as original guarantors
(Original Guarantors);
	 
	(4)	 	HSBC Bank plc as mandated lead arranger (Arranger);
	 
	(5)	 	HSBC Bank plc as original fronting bank (Original Fronting Bank);
	 
	(6)	 	The Financial Institutions listed in part 2 of schedule 1 (the Original Parties) as original
lenders (Original Lenders);
	 
	(7)	 	HSBC Bank plc as agent of the other Finance Parties (Agent); and
	 
	(8)	 	HSBC Bank plc as security agent for the Finance Parties (Security Agent).

It is agreed

	1	 	Definitions and interpretation
	 
	1.1	 	Definitions
	 
	 	 	In this Agreement:
	 
	 	 	Accession Letter means a Borrower Accession Letter, Guarantor Accession Letter, a Fronting
Bank Accession Letter or a Hedging Bank Accession Letter
	 
	 	 	Accountants Report means the report by Deloitte and Touche dated 14 December 2005 relating
to the Group and addressed to, and capable of being relied on by, the Agent and the other
Finance Parties
	 
	 	 	Accounting Quarter means each period of approximately three months ending on or about 31
March, 30 June, 30 September and 31 December adopted by the Group for the purpose of its
financial reporting in any Financial Year
	 
	 	 	Additional Borrower means a company which becomes an Additional Borrower in accordance with
clause 34 (Changes to the Obligors)
	 
	 	 	Additional Cost Rate has the meaning given to it in schedule 4 (Mandatory Cost formulae)
	 
	 	 	Additional Guarantor means a company which becomes an Additional Guarantor in accordance
with clause 34 (Changes to the Obligors)
	 
	 	 	Additional Obligor means an Additional Borrower or an Additional Guarantor
	 
	 	 	Affiliate means, in relation to any person, a Subsidiary of that person or a Holding Company
of that person or any other Subsidiary of that Holding Company

1

 

	 	 	Agent’s Spot Rate of Exchange means the Agent’s spot rate of exchange for the purchase of
the relevant currency with the Base Currency in the London foreign exchange market at or
about 11:00 a.m. on a particular day
	 
	 	 	Agreed Form means, in relation to a document, that:

	 	(a)	 	it is in a form initialled by or on behalf of the Obligors’ Agent and the Agent
on or before the signing of this Agreement for the purposes of identification; or
	 
	 	(b)	 	if not falling within paragraph (a) above, it is in form and substance
satisfactory to the Agent (acting reasonably) and initialled by or on behalf of the
Agent for the purposes of identification

Ancillary Commitment means, in relation to an Ancillary Lender and an Ancillary Facility,
the maximum Base Currency Amount from time to time agreed (whether or not subject to
satisfaction of conditions precedent and whether or not utilised) to be made available by
that Ancillary Lender under an Ancillary Facility and authorised under clause 15 (Ancillary
Facilities), to the extent not cancelled or reduced under this Agreement or the Ancillary
Facility Documents relating to that Ancillary Facility

Ancillary Facility means an ancillary facility made available by an Ancillary Lender in
accordance with clause 15 (Ancillary Facilities)

Ancillary Facility Document means a document setting out the terms of an Ancillary Facility

Ancillary Facility Request means a notice substantially in the form set out in part 4 of
schedule 3 (Requests)

Ancillary Lender means a Lender which agrees to make available an Ancillary Facility in
accordance with clause 15 (Ancillary Facilities)

Ancillary Outstandings means, at any time and in relation to an Ancillary Facility, the
aggregate face value (calculated in the Base Currency) of all letters of credit issued under
that Ancillary Facility determined by the relevant Ancillary Lender in accordance with
normal banking practice at that time for calculating exposure under similar facilities
(acting reasonably and after consultation with the Agent)

For the purposes of this definition:

	 	(a)	 	in relation to any utilisation denominated in the Base Currency, the amount of
that utilisation shall be used; and
	 
	 	(b)	 	in relation to any utilisation not denominated in the Base Currency, the
equivalent (calculated as specified in the relevant Ancillary Facility Document or, if
not so specified, as the relevant Ancillary Lender may specify, in each case in
accordance with its usual practice at that time for calculating that equivalent (acting
reasonably and after consultation with the Agent)) in the Base Currency of the amount
of that utilisation shall be used

Authorisation means an authorisation, consent, approval, resolution, licence, exemption,
filing, notarisation or registration

Availability Period means:

2

 

	 	(c)	 	in relation to Facility A, the period from and including the date of this
Agreement to and including the date which is 60 days after the date of this Agreement;
and
	 
	 	(d)	 	in relation to Facility C, the period from and including the date of this
Agreement to and including the Business Day one month before the Termination Date

Available Commitment means, in relation to a Facility, a Lender’s Commitment under that
Facility minus:

	 	(e)	 	the Base Currency Amount of its participation in any outstanding Utilisations
under that Facility; and
	 
	 	(f)	 	in relation to any proposed Utilisation, the Base Currency Amount of its
participation in any Utilisations that are due to be made under that Facility on or
before the proposed Utilisation Date and, in the case of Facility C only, the Base
Currency Amount of the aggregate of its Ancillary Commitments in relation to any new
Ancillary Facilities that are due to be made available on or before the proposed
Utilisation Date of that Facility C Utilisation,

other than, in relation to any proposed Utilisation under Facility C only, that Lender’s
participation in any Facility C Utilisations, that are due to be repaid or prepaid on or
before the proposed Utilisation Date

Available Facility means, in relation to a Facility, the aggregate for the time being of
each Lender’s Available Commitment in respect of that Facility

Base Currency or U.S.$ means United States dollars

Base Currency Amount means:

	 	(g)	 	in relation to a Utilisation, the amount specified in the Utilisation Request
or the Renewal Request delivered by a Borrower for that Utilisation (or, if the amount
requested is not denominated in the Base Currency, that amount converted into the Base
Currency at the Agent’s Spot Rate of Exchange on the date which is three Business Days
before the Utilisation Date or, if later, on the date the Agent receives the
Utilisation Request or the Renewal Request, adjusted to reflect any repayment (other
than, in relation to Facility A, a repayment arising from a change of currency),
prepayment, consolidation or division of the Utilisation and, in the case of a Letter
of Credit, as adjusted under clause 12.8 (Revaluation of Letters of Credit)); or
	 
	 	(h)	 	in relation to an Ancillary Commitment, the amount specified in the notice
delivered to the Agent by the relevant Borrower pursuant to clause 15.3(a) (Request for
Ancillary Facilities), adjusted to reflect any increase, cancellation or reduction of
that Ancillary Facility

Board means the Board of Governors of the Federal Reserve System of the US (or any
successor)

Borrower means an Original Borrower or an Additional Borrower, unless it has ceased to be a
Borrower in accordance with clause 34 (Changes to the Obligors)

Borrower Accession Letter means a document substantially in the form set out in schedule 6

Break Costs means the amount (if any) by which:

3

 

	 	(i)	 	the interest (excluding the Margin) which a Lender should have received for the
period from the date of receipt of all or any part of its participation in a Loan or
Unpaid Sum to the last day of the current Interest Period in respect of that Loan or
Unpaid Sum, had the principal amount or Unpaid Sum received been paid on the last day
of that Interest Period;

exceeds:

	 	(j)	 	the amount which that Lender would be able to obtain by placing an amount equal
to the principal amount or Unpaid Sum received by it on deposit with a leading bank in
the Relevant Interbank Market for a period starting on the Business Day following
receipt or recovery and ending on the last day of the current Interest Period

Business Day means a day (other than a Saturday or Sunday) on which banks are open for
general business in London and New York and:

	 	(k)	 	(in relation to any date for payment or purchase of a currency other than euro)
the principal financial centre of the country of that currency; or
	 
	 	(l)	 	(in relation to any date for payment or purchase of euro) any TARGET Day

Business Plan means the 3 year business plan of each Obligor and the Group prepared by the
Obligors’ Agent and the Borrowers and in the Agreed Form

Cash means any credit balance on any deposit, savings, current or other account, and any
cash in hand, which is:

	 	(m)	 	freely withdrawable on demand;
	 
	 	(n)	 	not subject to any Security or any Quasi Security (other than pursuant to any
Security Document or any banker’s lien arising by operation of law); and
	 
	 	(o)	 	capable of being remitted to a Borrower

Cash Equivalent Investments means:

	 	(p)	 	securities with a maturity of less than 12 months from the date of acquisition
issued or fully guaranteed or fully insured by the Government of the United States or
any member state of the European Union which is rated at least A-1 by Standard & Poor’s
Ratings Group or P-1 by Moody’s Investors Service, Inc.;
	 
	 	(q)	 	commercial paper or other debt securities issued by an issuer rated at least
A-1 by Standard & Poor’s Ratings Group or P-1 by Moody’s Investors Service, Inc. and
with a maturity of less than 12 months;
	 
	 	(r)	 	certificates of deposit or time deposits of any commercial bank (which has
outstanding debt securities rates as referred to in paragraph (b) above) with a
maturity of less than three months; and
	 
	 	(s)	 	other securities (if any) approved in writing by the Agent (acting on the
instructions of the Majority Lenders)

in each case not subject to any Security or Quasi Security (other than pursuant to any
Security Document or any banker’s lien or rights of set-off arising by operation of law),

4

 

denominated and payable in a freely transferable and freely convertible currency and the
proceeds of which are capable of being remitted to a Borrower

Cash Flow has the meaning given to it in clause 30 (Financial covenants)

Certificates of Title means the certificates of title, in the form of the 5th Edition of the
Certificate of Title issued by the City of London Solicitors Company Land Law Sub-Committee
or as otherwise agreed between the Agent (acting on the instructions of the Majority
Lenders) and the Obligors’ Agent (each acting reasonably), subject to the exclusion that in
any event no such certificate shall be required to deal with any matters relating to the
Environment, Environmental Law or Environmental Licences, addressed to the Finance Parties
and prepared by Shoosmiths, solicitors for the Obligors, in relation to the Major UK Real
Estate

Charged Assets means the assets over which Security is expressed to be created pursuant to
any Security Document

Chargor means any person expressed to create Security pursuant to any Security Document

Chromalloy Unit means Chromalloy Gas Turbine Europa B.V. and its Subsidiaries for the time
being other than any of its Subsidiaries which are Excluded Subsidiaries

Combined Group Accounts means the combined financial statements of the Group prepared in
accordance with clause 29.4(b) (Requirements as to financial statements)

Commencement Date has the meaning given to it in clause 15.3 (Request for Ancillary
Facilities)

Commitment means a Facility A Commitment, a Facility C Commitment or an Ancillary Commitment

Compliance Certificate means a certificate substantially in the form set out in schedule 7
(Form of Compliance Certificate)

Confidentiality Undertaking means a confidentiality undertaking substantially in a
recommended form of the LMA or in any other form agreed between the Obligors’ Agent and the
Agent

Contribution Notice means a notice issued by the Regulator under Section 38 or Section 47 of
the Pensions Act 2004

Default means an Event of Default or any event or circumstance specified in clause 32
(Events of Default) which would (with the expiry of a grace period, the giving of notice or
the making of any determination in each case under the Finance Documents or any combination
of any of the foregoing) be an Event of Default

Defined Benefit Pension Scheme means an occupational pension scheme which is not a money
purchase scheme (both terms as defined in the Pension Schemes Act 1993)

Dutch Banking Act means the Dutch 1992 Banking Act (Wet toezicht Kredietwezen 1992)

Dutch Banking Act Exemption Regulation means the Dutch 1992 Banking Act Exemption Regulation
(Vrijstellingsregeling Wtk 1992)

Dutch Borrower means Chromalloy Holland B.V.

5

 

Dutch Guarantor means Chromalloy Holland B.V., Chromalloy Gas Turbine Europa B.V. and any
Additional Guarantor incorporated in the Netherlands

Dutch Obligor means a Dutch Borrower or a Dutch Guarantor

EBITDA has the meaning given to it in clause 30 (Financial covenants)

Employee Plan means, at any time, an “employee pension benefit plan” as defined in Section
3(2) of ERISA (other than a Multiemployer Plan) then or at any time during the previous five
years maintained for, or contributed to (or to which there is or was an obligation to
contribute) on behalf of, employees of Sequa or an ERISA Affiliate

Environment means living organisms, including the ecological systems of which they form
part, and the following media:

	 	(t)	 	air (including air within natural or man-made structures, whether above or
below ground);
	 
	 	(u)	 	water (including territorial, coastal and inland waters, water under or within
land and water in drains and sewers); and
	 
	 	(v)	 	land (including land under water)

Environmental Law means all applicable laws and regulations of any jurisdiction in which any
member of the Group is incorporated or conducts business or where any assets of any member
of the Group are located which:

	 	(w)	 	have as a purpose or effect the protection of, and/or prevention of harm or
damage to, the Environment;
	 
	 	(x)	 	provide remedies or compensation for harm or damage to the Environment; or
	 
	 	(y)	 	relate to Hazardous Substances or health and safety matters

Environmental Licence means any Authorisation required at any time under Environmental Law

ERISA means the US Employee Retirement Income Security Act of 1974 as amended (or any
successor legislation thereto) and the regulations promulgated and rulings issued thereunder

ERISA Affiliate means each person (as defined in Section 3(9) of ERISA) that is a member of
a controlled group of, or under common control with, Sequa, within the meaning of Section
414(b) or (c) of the Internal Revenue Code

ERISA Event means any of the following events:

	 	(a)	 	any reportable event, as defined in Section 4043(c) of ERISA and the
regulations promulgated under it, with respect to an Employee Plan as to which the PBGC
has not by regulation waived the requirement of Section 4043(a) of ERISA that it be
notified within thirty days (30) of the occurrence of that event. However, a failure to
meet the minimum funding standard of Section 412 of the Internal Revenue Code or
Section 302 of ERISA shall be a reportable event for the purposes of this paragraph (a)
regardless of the issuance of any waiver under Section 412(d) of the Internal Revenue
Code;

6

 

	 	(b)	 	the filing under Section 4041(c) of ERISA of a notice of intent to terminate
any Employee Plan;
	 
	 	(c)	 	the termination of any Employee Plan under Section 4041(c) of ERISA;
	 
	 	(d)	 	the institution of proceedings under Section 4042 of ERISA by the PBGC for the
termination of, or the appointment of a trustee to administer, any Employee Plan;
	 
	 	(e)	 	the failure to make a required contribution to any Employee Plan that would
result in the imposition of an encumbrance under Section 412 of the Internal Revenue
Code or Section 302 of ERISA; or
	 
	 	(f)	 	engagement in a non-exempt prohibited transaction within the meaning of Section
4975 of the Internal Revenue Code or Section 406 of ERISA

Event of Default means any event or circumstance specified as such in clause 32 (Events of
Default)

Excluded Subsidiary means Casco Imos Italia S.p.A, Chromalloy Gas Turbine France S.A.,
Langtham Limited, ARC Automotive Italia Srl, Casco Schoeller GmbH, Sequa Can Machinery Ltd,
Turbine Services Limited, or any of their respective Subsidiaries from time to time (and,
for the avoidance of doubt, TRT Limited, Turbine Surface Technologies Limited and Gas
Turbine Technologies S.A., if and to the extent they are Subsidiaries, shall also be
Excluded Subsidiaries)

Existing HSBC Facility means Financial Indebtedness under the letter of credit facility
letter dated 24 January 2005 from HSBC Bank plc to Warwick International Group Limited and
Sequa Corporation

Existing Letter of Credit means each letter of credit listed in schedule 14 (Existing
Letters of Credit) in the Agreed Form

Expiry Date means, for a Letter of Credit, the last day of its Term

Facility means Facility A, Facility B or Facility C

Facility A means the term loan facility made available under this Agreement as described in
clause 8 (The Facilities)

Facility A Commitment means:

	 	(z)	 	in relation to an Original Lender, the amount in the Base Currency set opposite
its name under the heading “Facility A Commitment” in part 2 of schedule 1 (The
Original Parties) and the amount of any other Facility A Commitment transferred to it
under this Agreement; and
	 
	 	(aa)	 	in relation to any other Lender, the amount in the Base Currency of any
Facility A Commitment transferred to it under this Agreement,

to the extent not cancelled, reduced or transferred by it under this Agreement

Facility A Loan means a loan made or to be made under Facility A or the principal amount
outstanding for the time being of that loan

7

 

Facility A Repayment Date means each date specified in clause 16.1 (Repayment of Facility A
Loans) for the payment of a Repayment Instalment

Facility C means the letter of credit facility made available under this Agreement as
described in clause 8 (The Facilities) a part of which may be designated as Ancillary
Facilities in accordance with clause 15 (Ancillary Facilities)

Facility C Commitment means:

	 	(bb)	 	in relation to an Original Lender, the amount in the Base Currency set opposite
its name under the heading “Facility C Commitment” in part 2 of schedule 1 (The
Original Parties) and the amount of any other Facility C Commitment transferred to it
under this Agreement; and
	 
	 	(cc)	 	in relation to any other Lender, the amount in the Base Currency of any
Facility C Commitment transferred to it under this Agreement

to the extent not cancelled, reduced or transferred by it under this Agreement (including a
reduction pursuant to clause 15 (Ancillary Facilities))

Facility C Utilisation means a Letter of Credit

Facility Office means the office or offices notified by a Lender to the Agent in writing on
or before the date it becomes a Lender (or, following that date, by not less than five
Business Days’ written notice) as the office or offices through which it will perform its
obligations under this Agreement

Fee Letter means any letter or letters between, as the case may be, the Arranger and the
Borrowers, the Agent and the Borrowers, the Security Agent and the Borrowers or a Fronting
Bank and the Borrowers setting out any of the fees referred to in clause 21 (Fees) or clause
13.3 (Fees payable in respect of Letters of Credit) and/or relating to syndication of the
Facilities

Finance Document means this Agreement, any Fee Letter, any Accession Letter, any Ancillary
Facility Document, any Resignation Letter, any Security Document, any Hedging Document and
any other document designated as such by the Agent and the Obligors’ Agent

Finance Party means the Agent, the Security Agent, the Arranger, a Lender, a Hedging Bank or
a Fronting Bank or an Ancillary Lender

Financial Indebtedness means (without double counting) any indebtedness for or in respect
of:

	 	(dd)	 	moneys borrowed;
	 
	 	(ee)	 	any amount raised by acceptance under any acceptance credit facility or
dematerialised equivalent;
	 
	 	(ff)	 	any amount raised pursuant to any note purchase facility or the issue of bonds,
notes, debentures, loan stock or any similar instrument;
	 
	 	(gg)	 	the amount of any liability in respect of any lease or hire purchase contract
which would, when recorded in conformity with US GAAP, be treated as a finance or
capital lease;

8

 

	 	(hh)	 	receivables sold or discounted (other than any receivables to the extent they
are sold on a non-recourse basis);
	 
	 	(ii)	 	any amount raised under any other transaction (including any forward sale or
purchase agreement) having the commercial effect of a borrowing;
	 
	 	(jj)	 	any derivative transaction entered into in connection with protection against
or benefit from fluctuation in any rate or price (and, when calculating the value of
any derivative transaction, only the marked to market value shall be taken into
account);
	 
	 	(kk)	 	shares which are expressed to be redeemable;
	 
	 	(ll)	 	any counter-indemnity obligation in respect of a guarantee, indemnity, bond,
standby or documentary letter of credit or any other instrument issued by a bank or
financial institution;
	 
	 	(mm)	 	the amount of any liability in respect of any credit for goods and services
raised in the ordinary course of trade outstanding for more than 90 days after its
customary date of payment (save to the extent such liability is being contested in good
faith by the relevant member of the Group by appropriate action); and
	 
	 	(nn)	 	the amount of any liability in respect of any guarantee or indemnity for any of
the items referred to in paragraphs (a) to (j) above

Financial Support Direction means a direction issued by the Regulator under Section 43 of
the Pensions Act 2004

Financial Year means a financial year of the Group, being the period of 12 months ending on
31 December in each year

Fixtures means fixtures, fittings (including trade fixtures and fittings) and fixed plant,
machinery and apparatus

Fraudulent Transfer Law means any applicable US Bankruptcy Law (including, without
limitation, Section 548 of Title 11 of the United States Bankruptcy Code) or any US state
fraudulent transfer or conveyance statute and any related case law

Fronting Bank means the Original Fronting Bank or a Lender which has become a Fronting Bank
in accordance with clause 33.9 (Fronting Banks)

Fronting Bank Accession Letter means a document substantially in the form set out in
schedule 12 (Form of Fronting Bank Accession Letter)

Funds Flow Memorandum means the funds flow memorandum in the Agreed Form containing details
of the flow of dividends and other funds on the first Utilisation under Facility A

Group means each Unit Parent and their respective Subsidiaries for the time being, in each
case, other than any Excluded Subsidiaries

Group Structure Chart means the group structure chart in the Agreed Form

Guarantor means an Original Guarantor or an Additional Guarantor, unless it has ceased to be
a Guarantor in accordance with clause 34 (Changes to the Obligors)

9

 

Guarantor Accession Letter means a document substantially in the form set out in schedule 5
(Form of Guarantor Accession Letter)

Hazardous Substance means any waste, pollutant, contaminant or other substance (including
any liquid, solid, gas, ion, living organism or noise) that may be harmful to human health
or other life or the Environment or a nuisance to any person

Hedging Bank means a Lender which has become a Hedging Bank in accordance with clause 33.8
(Hedging Banks)

Hedging Bank Accession Letter means a document substantially in the form set out in schedule
11 (Form of Hedging Bank Accession Letter)

Hedging Document means any document entered into between a member of the Group and a Hedging
Bank for the purpose of implementing currency and/or interest rate exposure arising under or
in connection with the Facilities

Holding Company means, in relation to a company, corporation or other legal entity, any
other company, corporation or other legal entity in respect of which it is a Subsidiary

Indebtedness for Borrowed Money means Financial Indebtedness:

	 	(oo)	 	save for indebtedness under paragraphs (i), (j) and (k) of that definition; and
	 
	 	(pp)	 	save that in respect of indebtedness under paragraph (g) of that definition,
only derivative transactions which when recorded in conformity with US GAAP are
reflected as an increase or decrease to the current or long-term debt amounts on the
relevant balance sheet in the relevant Combined Group Accounts, will be included

Information Package means the Business Plan and the Reports

Interest Expense has the meaning given to it in clause 30 (Financial covenants)

Interest Period means, in relation to a Loan, each period determined in accordance with
clause 19 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in
accordance with clause 18.3 (Default interest)

Internal Revenue Code means the United States Internal Revenue Code of 1986, as amended and
the regulations promulgated and any rulings issued thereunder

Intra-Group Loan Agreements means:

	 	(qq)	 	the loan agreement in the Agreed Form between Chromalloy Holland B.V. as lender
and Chromalloy (Thailand) Ltd. as borrower; and
	 
	 	(rr)	 	the loan agreement in the Agreed Form between Chromalloy Holland B.V. as lender
and Chromalloy Gas Turbine Europa B.V. as borrower,

in each case to make loans as described in the Funds Flow Memorandum

ITA means the Income Tax Act 2007

L/C Proportion means, in relation to a Lender in respect of any Letter of Credit, the
proportion (expressed as a percentage) borne by that Lender’s Available Commitment under

10

 

Facility C to the Available Facility under Facility C immediately prior to the issue of that
Letter of Credit

Legal Opinions means the legal opinions delivered to the Agent pursuant to clause 10
(Conditions of Utilisation) or clause 34 (Changes to the Obligors)

Lender means:

	 	(ss)	 	Original Lender; and
	 
	 	(tt)	 	any bank, financial institution, trust, fund or other entity which has become a
Party in accordance with clause 33 (Changes to the Lenders)

which in each case has not ceased to be a Party in accordance with the terms of this
Agreement

Letter of Credit means a letter of credit:

	 	(uu)	 	substantially in a form set out in schedule 10 (Letters of Credit);
	 
	 	(vv)	 	substantially in the form of an Existing Letter of Credit; or
	 
	 	(ww)	 	in any other form requested by the Obligors’ Agent and agreed by the Agent
(with the prior consent of the Majority Lenders) and a Fronting Bank

Liabilities has the meaning given to it in the applicable Security Document and shall
include “Secured Liabilities” as defined in the applicable Security Document

LIBOR means, in relation to any Loan:

	 	(xx)	 	the applicable Screen Rate; or
	 
	 	(yy)	 	(if no Screen Rate is available for the currency or Interest Period of that
Loan) the arithmetic mean of the rates (rounded upwards to four decimal places) as
supplied to the Agent at its request quoted by the Reference Banks to leading banks in
the London interbank market,

as of the Specified Time on the Quotation Day for the offering of deposits in the currency
of that Loan and for a period comparable to the Interest Period for that Loan

LMA means the Loan Market Association

Loan means a Facility A Loan

Major Dutch Real Estate means the land and buildings, locally known as Siriusstraat 55, 5015
BT Tilburg, known at the Land Registry Office as Municipality of Tilburg, section U number
472, measuring ten thousand five hundred thirty four square meters

Major Real Estate means the Major Dutch Real Estate, the Major Thai Real Estate and the
Major UK Real Estate

Major Thai Real Estate means certain assets of Chromalloy (Thailand) Ltd comprising:

11

 

	 	(zz)	 	freehold land in the approximate areas of 14 rai 1 ngan 9 square wah in Tambol
Bungkhamproi, Amphur Lamlukka, Pathumthani Province represented by the following title
deeds:

	 	(i)	 	title deed number 33239;
	 
	 	(ii)	 	title deed number 33240; and
	 
	 	(iii)	 	title deed number 33241,

	 	(aaa)	 	the buildings described in the permit for building construction, modification
and removal of buildings of Chromalloy (Thailand) Ltd. No 20/2542 issued on 28 April
1999 as follows:

	 	(i)	 	reinforced concrete and steel 1-storey building and mezzanine
used for factory and office and any other buildings on such land including 13
car park units, U-turn areas and entrances; and
	 
	 	(ii)	 	any building and construction to be constructed on the land
represented by the land title deeds specified in paragraphs (a)(i) to (iii)
above

Major UK Real Estate means:

	 	(bbb)	 	freehold land and buildings on the east side of Linkmel Road, Langley Mill,
Eastwood registered under title number NT134480;
	 
	 	(ccc)	 	freehold land on the south side of Clover Nook Road, Normanton registered
under title number DY238731; and
	 
	 	(ddd)	 	freehold land in Mostyn registered under the following title numbers:

	 	(i)	 	WA541939
	 
	 	(ii)	 	WA679033
	 
	 	(iii)	 	WA691436
	 
	 	(iv)	 	WA446486
	 
	 	(v)	 	WA371140

Majority Lenders means:

	 	(eee)	 	if there are no Utilisations then outstanding, a Lender or Lenders whose
Commitments aggregate more than 662/3% of the Total Commitments (or, if the Total
Commitments have been reduced to zero, aggregated more than 662/3% of the Total
Commitments immediately prior to the reduction); or
	 
	 	(fff)	 	at any other time, a Lender or Lenders whose participations in the
Utilisations then outstanding aggregate more than 662/3% of all the Utilisations then
outstanding

Mandatory Cost means the percentage rate per annum calculated by the Agent in accordance
with schedule 4 (Mandatory Cost formulae)

12

 

Margin means 1.75 per cent. per annum, subject to adjustment (in respect of Facility A) in
accordance with clause 18.5 (Adjustment of Margin – Facility A) and clause 18.6 (Adjustment
of Margin – Facility C) (in respect of Facility C)

Margin Stock means margin stock or margin security within the meaning of Regulation T, U or
X

Material Adverse Effect means a material adverse effect on or material adverse change in:

	 	(ggg)	 	the combined financial condition, assets or business of the Group taken as a whole;
	 
	 	(hhh)	 	the ability of any Obligor to perform and comply with its payment obligations
under any Finance Document or its obligations under clause 30 (Financial covenants)
taking into account the resources of the Group taken as a whole;
	 
	 	(iii)	 	the validity, legality or enforceability of any provision of any Finance
Document in a manner reasonably considered by the Majority Lenders to be materially
adverse to the interests of the Finance Parties; or
	 
	 	(jjj)	 	the validity, legality or enforceability of any Security expressed to be
created pursuant to any Security Document or on the priority and ranking of any of that
Security in a manner reasonably considered by the Majority Lenders to be materially
adverse to the interests of the Finance Parties

Material Subsidiary means:

	 	(kkk)	 	an Original Borrower or an Original Guarantor;
	 
	 	(lll)	 	a Subsidiary of the Group the total assets, turnover or pre-tax profits of
which (consolidated where that Subsidiary itself has Subsidiaries (but disregarding any
Excluded Subsidiaries)) as at the date at which its latest audited consolidated
financial statements were prepared or, as the case may be, for the financial period to
which those financial statements relate account for 5 per cent. or more of the combined
total assets, turnover or pre-tax profits of the Group (all as calculated by reference
to the latest Combined Group Accounts); or
	 
	 	(mmm)	 	a Subsidiary of the Group to which has been transferred (whether in a single
transaction or a series of transactions (whether related or not)) the whole or
substantially the whole of the assets of another Subsidiary which immediately prior to
such transaction(s) was a Material Subsidiary

For the purposes of this definition:

	 	(i)	 	if a Subsidiary becomes a Material Subsidiary under paragraph
(c) above, the Material Subsidiary by which the relevant transfer was made
shall, subject to paragraph (b) above, cease to be a Material Subsidiary;
	 
	 	(ii)	 	if a Subsidiary is acquired by a Unit Parent after the end of
the financial period to which the latest Combined Group Accounts relate, those
financial statements shall be adjusted (for this purpose only) as if that
Subsidiary had been shown in them by reference to its then latest audited
financial statements until Combined Group Accounts for the financial period in
which the acquisition is made have been prepared (and provided that nothing in
this paragraph requires any restated or adjusted financial statements to be
delivered under this Agreement); and

13

 

	 	(iii)	 	a report by the auditors of the Obligors’ Agent that a
Subsidiary is or is not a Material Subsidiary pursuant to this definition shall
in the absence of manifest error be conclusive and binding on all Parties
(until the next Combined Group Accounts are delivered)

Month means a period starting on one day in a calendar month and ending on the numerically
corresponding day in the next calendar month, except that:

	 	(nnn)	 	if the numerically corresponding day is not a Business Day, that period shall
end on the next Business Day in that calendar month in which that period is to end if
there is one or if there is not, on the immediately preceding Business Day; and
	 
	 	(ooo)	 	if there is no numerically corresponding day in the calendar month in which
that period is to end, that period shall end on the last Business Day in that calendar
month

The above rules will only apply to the last Month of any period

Multiemployer Plan means, at any time, a multiemployer plan (as defined in Section
4001(a)(3) of ERISA) then or at any time during the previous five years maintained for, or
contributed to (or to which there is or was an obligation to contribute) on behalf of,
employees of Sequa or an ERISA Affiliate

Net Borrowings has the meaning given to it in clause 30 (Financial covenants)

Obligor means a Borrower or a Guarantor

Obligors’ Agent means Sequa

Optional Currency means a currency (other than the Base Currency) which complies with the
conditions set out in clause 10.3 (Conditions relating to Optional Currencies)

Original Financial Statements means, in relation to each Original Obligor (other than
Chromalloy Holding (Thailand) Ltd), its audited Statutory Financial Statements for its
financial year ended 31 December 2004

Original Obligor means an Original Borrower or an Original Guarantor

Participating Member State means any member state of the European Communities that adopts or
has adopted the euro as its lawful currency in accordance with legislation of the European
Community relating to Economic and Monetary Union

Party means a party to this Agreement

PBGC means the Pension Benefit Guaranty Corporation of the US established pursuant to
Section 4002 of ERISA or any entity succeeding to all or any of its functions under ERISA

Pensions Event means any of the following events:

	 	(ppp)	 	any Defined Benefit Pension Scheme starting to be wound up under Section 11 of
the Pensions Act 1995 or under any provisions of its governing documentation;
	 
	 	(qqq)	 	an employment-cessation event (within the meaning of the Occupational Pension
Schemes (Employer Debt) Regulations 2005) occurring in relation to any member of the
Group and any Defined Benefit Pension Scheme; and/or

14

 

	 	(rrr)	 	a Contribution Notice and/or a Financial Support Direction being issued to any
Obligor or any member of the Group

Perfection Requirements means the making of the appropriate registrations, filings or
notifications of the Security Documents as specifically contemplated by any legal opinion
delivered pursuant to clause 10 (Conditions of Utilisation) or clause 34 (Changes to the
Obligors)

Permitted Disposal means the sale to a third party non-Obligor on arms’ length terms by
Sequa or one of its Subsidiaries of the entire issued share capital of Warwick International
Group Limited and its Subsidiaries

Permitted Joint Venture Transaction means a loan to (or other Financial Indebtedness in
favour of), a guarantee to, or in respect of the obligations of, a disposal of an asset to,
or any acquisition of, investment in or subscription for a share or participation in (each,
a Joint Venture Exposure), a joint venture between a member of the Group and one or more
third parties, where:

	 	(sss)	 	the Joint Venture Exposure is in existence as at the date of this Agreement
(and the amount of that Joint Venture Exposure is not more than as at the date of this
Agreement); or
	 
	 	(ttt)	 	in the case of a Joint Venture Exposure entered into after the date of this
Agreement (including an increase of any Joint Venture Exposure existing as at the date
of this Agreement):

	 	(i)	 	no Default is continuing at the time of entering into the Joint
Venture Exposure or would occur as a result of that Joint Venture Exposure;
	 
	 	(ii)	 	the joint venture carries on, or is, a business substantially
the same as that carried on by the Group;
	 
	 	(iii)	 	the amount of that Joint Venture Exposure, when aggregated
with each other Joint Venture Exposure entered into since the date of this
Agreement, does not in aggregate exceed £10,000,000; and
	 
	 	(iv)	 	the joint venture does not have any material liability for
which there is recourse to any member of the Group

Permitted Reorganisation means:

	 	(uuu)	 	a reorganisation (including a merger) on a solvent basis of one or more
members of the Group incorporated in the same jurisdiction where:
	 
	 	(vvv)	 	if any such member of the Group was an Obligor, the surviving entity remains
or becomes immediately upon such reorganisation an Obligor on the same terms as such
original Obligor; and
	 
	 	(www)	 	if the assets or shares of any such member of the Group were subject to
Security in favour of the Security Agent immediately prior to such reorganisation, the
Security Agent will enjoy equivalent Security over the same assets and the shares in it
(or in each case its successor) immediately upon such reorganisation; or
	 
	 	(xxx)	 	any other reorganisation of one or more members of the Group approved by the
Agent (acting on the instructions of the Majority Lenders)

15

 

Professional Market Party means a professional market party as defined in the Dutch Banking
Act Exemption Regulation from time to time

Qualifying Lender has the meaning given to it in clause 22 (Tax gross-up and indemnities)

Quasi Security means a transaction under which any member of the Group will:

	 	(yyy)	 	sell, transfer or otherwise dispose of any of its assets on terms whereby they
are or may be leased to or re-acquired by any other member of the Group;
	 
	 	(zzz)	 	sell, transfer or otherwise dispose of any of its receivables on recourse
terms;
	 
	 	(aaaa)	 	enter into any arrangement under which money or the benefit of a bank or other
account may be applied, set-off or made subject to a combination of accounts; or
	 
	 	(bbbb)	 	enter into any other preferential arrangement having a similar effect to creating
Security

in circumstances where the arrangement or transaction is entered into primarily as a method
of raising Financial Indebtedness or of financing the acquisition of an asset

Quotation Day means, in relation to any period for which an interest rate is to be determined:

	 	(cccc)	 	(if the currency is sterling) the first day of that period;
	 
	 	(dddd)	 	(if the currency is euro) two TARGET Days before the first day of that period; or
	 
	 	(eeee)	 	(for any other currency) two Business Days before the first day of that period

unless market practice differs in the Relevant Interbank Market for a currency, in which
case the Quotation Day for that currency will be determined by the Agent in accordance with
market practice in the Relevant Interbank Market (and if quotations for that currency and
period would normally be given by leading banks in the Relevant Interbank Market on more
than one day, the Quotation Day will be the last of those days)

Reference Banks means, in relation to LIBOR and Mandatory Cost the principal London office
of HSBC Bank plc; together with such other banks as may be nominated by the Agent in
consultation with the Obligors’ Agent

Regulation T, Regulation U or Regulation X means Regulation T, U or, as the case may be, X
of the Board as from time to time in effect and all official rulings and interpretations
thereunder or thereof

Regulator means the Pensions Regulator established pursuant to Section 1 of the Pensions Act
2004

Relevant Date has the meaning given to it in clause 30 (Financial covenants)

Relevant Interbank Market means the London interbank market

Relevant Jurisdiction means, in relation to an Obligor:

	 	(ffff)	 	its jurisdiction of incorporation;

16

 

	 	(gggg)	 	any jurisdiction where any asset subject to or intended to be subject to a Security
Document is situated;
	 
	 	(hhhh)	 	any jurisdiction where it conducts its business; and
	 
	 	(iiii)	 	the jurisdiction whose laws govern the perfection of any of the Security Documents
entered into by it

Relevant Period has the meaning given to it in clause 30 (Financial covenants)

Renewal Request means a written notice delivered to the Agent in accordance with clause 12.7
(Renewal of a Letter of Credit)

Repayment Instalment means each instalment for repayment of the Facility A Loan specified in
clause 16.1 (Repayment of Facility A Loans)

Repeating Representations means each of the representations set out in clauses 28.1 (Status)
to 28.5 (Validity and admissibility in evidence) (inclusive), 28.9 (No default), 28.12 (No
proceedings pending or threatened) and clauses 28.13 (Security) to 28.15 (Assets)
(inclusive)

Reports means the documents listed in paragraph 4 of part 1 of schedule 2 (Conditions
precedent)

Reservations means:

	 	(jjjj)	 	the principle that equitable remedies may be granted or refused at the discretion of
the court;
	 
	 	(kkkk)	 	the limitation on enforcement by laws relating to insolvency, liquidation,
reorganisation, court schemes, moratoria, administration and other laws generally
affecting the rights of creditors;
	 
	 	(llll)	 	the time barring of claims under statutes of limitation;
	 
	 	(mmmm)	 	rules against penalties;
	 
	 	(nnnn)	 	defences of set-off or counterclaim; and
	 
	 	(oooo)	 	any principles which are set out in the qualifications as to matters of law in the
Legal Opinions

Resignation Letter means a letter substantially in the form set out in schedule 13 (Form of
Resignation Letter)

Rollover Loan means one or more Facility B Loans:

	 	(pppp)	 	made or to be made on the same day that a maturing Facility B Loan is due to be
repaid;
	 
	 	(qqqq)	 	the aggregate amount of which is equal to or less than the maturing Facility B Loan;
	 
	 	(rrrr)	 	in the same currency as the maturing Facility B Loan (unless it arose as a result of
the operation of clause 14.2 (Unavailability of a currency)); and

17

 

	 	(ssss)	 	made or to be made to the same Borrower for the purpose of refinancing a maturing
Facility B Loan

Screen Rate means the British Bankers Association Interest Settlement Rate for the relevant
currency and period displayed on the appropriate page of the Telerate screen. If the agreed
page is replaced or service ceases to be available, the Agent may specify another page or
service displaying the appropriate rate after consultation with the Obligors’ Agent and the
Lenders

Security means a mortgage, charge, pledge, lien or other security interest securing any
obligation of any person or any other agreement or arrangement having a similar effect

Security Document means the documents listed at paragraph 2 of part 1 and paragraph 19 of
part 2 of schedule 2 (Conditions precedent) and any other security document that may at any
time be given as security for any of the Liabilities pursuant to or in connection with any
Finance Document

Security Property has the meaning given to it in schedule 6 (Security agency provisions)

Selection Notice means a notice substantially in the form set out in part 2 of schedule 3
(Requests) given in accordance with clause 19 (Interest Periods) in relation to Facility A

Senior Debt Service has the meaning given to it in clause 30 (Financial covenants)

Specified Time means a time determined in accordance with schedule 9 (Timetables)

Statutory Financial Statements means, in relation to any member of the Group, those
financial statements required to be prepared in respect of that member of the Group in its
jurisdiction of incorporation and prepared in accordance with generally accepted accounting
principles, standards and practices in such jurisdiction and which:

	 	(tttt)	 	in relation to Chromalloy United Kingdom Limited, Chromalloy (Thailand) Ltd. and
Chromalloy Holding (Thailand) Ltd., will be unconsolidated;
	 
	 	(uuuu)	 	in relation to Chromalloy Gas Turbine Europa B.V., will be consolidated, with an
accompanying reconciliation to show Chromalloy Holland B.V. on an unconsolidated basis;
	 
	 	(vvvv)	 	in relation to Warwick International Group Limited, will be consolidated, with an
accompanying reconciliation to show Warwick International Group Limited on an
unconsolidated basis; and
	 
	 	(wwww)	 	in relation to any other member of the Group, will be consolidated

Subsidiary means, in relation to any company, corporation or other legal entity, (a holding
company), a company, corporation or other legal entity:

	 	(xxxx)	 	which is controlled, directly or indirectly, by the holding company;
	 
	 	(yyyy)	 	more than half the issued share capital of which is beneficially owned, directly or
indirectly, by the holding company; or
	 
	 	(zzzz)	 	which is a subsidiary of another Subsidiary of the holding company

18

 

and, for this purpose, a company or corporation shall be treated as being controlled by
another if that other company or corporation is able to determine the composition of the
majority of its board of directors or equivalent body

Super Majority Lenders means a Lender or Lenders whose Commitments aggregate at least 85% of
the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregated at
least 85% of the Total Commitments immediately prior to the reduction)

TARGET means Trans-European Automated Real-time Gross Settlement Express Transfer payment
system

TARGET Day means any day on which TARGET is open for the settlement of payments in euro

Tax means any tax, levy, impost, duty or other charge or withholding of a similar nature
(including any penalty or interest payable in connection with any failure to pay or any
delay in paying any of the same)

Taxes Act means the Income and Corporation Taxes Act 1988

Tax Structure Report means the report and step plan prepared by Ernst & Young in relation to
the tax structure of the Group and the tax treatment of the dividends to be paid from the
Loan proceeds dated 4 November 2005

Term means each period determined under this Agreement for which the relevant Fronting Bank
is under a liability under a Letter of Credit

Termination Date means the date which is 5 years after the date of this Agreement

Total Ancillary Commitments means the aggregate of the Ancillary Commitments

Total Ancillary Limit means U.S.$10,000,000

Total Borrowings has the meaning given to it in clause 30 (Financial covenants)

Total Commitments means the aggregate of the Total Facility A Commitments, the Total
Facility C Commitments and the Total Ancillary Commitments being U.S.$93,600,000 at the date
of this Agreement

Total Debt Service has the meaning given to it in clause 30 (Financial covenants)

Total Facility A Commitments means the aggregate of the Facility A Commitments, being
U.S.$48,600,000 at the date of this Agreement

Total Facility C Commitments means the aggregate of the Facility C Commitments, being
U.S.$45,000,000 at the date of this Agreement

Transfer Certificate means a certificate substantially in the form set out in schedule 5
(Form of Transfer Certificate) or any other form agreed between the Agent and the Obligors’
Agent

Transfer Date means, in relation to a transfer, the later of:

	 	(a)	 	the proposed Transfer Date specified in the Transfer Certificate; and
	 
	 	(b)	 	the date on which the Agent executes the Transfer Certificate.

19

 

	 	 	Unit means the Warwick Unit or the Chromalloy Unit
	 
	 	 	Unit Parent means, in the case of the Warwick Unit, Sequa Limited or, in the case of the
Chromalloy Unit, Chromalloy Gas Turbine Europa B.V.
	 
	 	 	Unpaid Sum means any sum due and payable but unpaid by an Obligor under the Finance
Documents
	 
	 	 	US GAAP means generally accepted accounting principles, standards and practices in the
United States of America
	 
	 	 	Utilisation means a Loan or a Letter of Credit (but not a utilisation of an Ancillary
Facility)
	 
	 	 	Utilisation Date means the date on which a Utilisation is made
	 
	 	 	Utilisation Request means a notice substantially in the form set out in Part I or (in
relation to a Letter of Credit) a notice substantially in the form set out in part 3 of
schedule 3 (Requests)
	 
	 	 	VAT means value added tax as provided for in the Value Added Tax Act 1994 and any other tax
of a similar nature applicable in the United Kingdom or otherwise
	 
	 	 	Warwick Unit means Sequa Limited and its Subsidiaries for the time being, other than any of
its Subsidiaries which are Excluded Subsidiaries
	 
	1.2	 	Construction

	 	(a)	 	Unless a contrary indication appears, any reference in this Agreement to:

	 	(i)	 	the Agent, any Ancillary Lender, the Arranger, any Finance
Party, any Fronting Bank, the Hedging Bank, any Lender, any Obligor, any Party
or the Security Agent shall be construed so as to include its successors in
title, permitted assigns and permitted transferees;
	 
	 	(ii)	 	assets includes present and future properties, revenues and
rights of every description;
	 
	 	(iii)	 	a Finance Document or any other agreement or instrument is a
reference to that Finance Document or other agreement or instrument as amended,
novated, supplemented or restated and includes any amendment, novation,
supplement or restatement relating to any increase in, extension of or change
to any facility made available under that Finance Document or other agreement
or instrument;
	 
	 	(iv)	 	indebtedness includes any obligation (whether incurred as
principal or as surety) for the payment or repayment of money, whether present
or future, actual or contingent;
	 
	 	(v)	 	a person includes any person, firm, company, corporation,
government, state or agency of a state or any association, trust or partnership
(whether or not having separate legal personality) or two or more of the
foregoing;
	 
	 	(vi)	 	a regulation includes any regulation, rule, official directive,
request or guideline (whether or not having the force of law but, if not having
the force of law, being of a type with which persons to whom it is directed are
expected and accustomed to comply) of any governmental, intergovernmental or

20

 

	 	 	 	supranational body, agency, department or regulatory, self-regulatory or
other authority or organisation;
	 
	 	(vii)	 	the equivalent in any currency (the “first currency”) of any
amount in another currency (the “second currency”) shall be construed as a
reference to the amount in the first currency which could be purchased with
that amount in the second currency at the Agent’s spot rate of exchange for the
purchase of the first currency with the second currency in the London foreign
exchange market at or about 11:00 a.m. on a particular day (or at or about such
time and on such date as the Agent may from time to time reasonably determine
to be appropriate in the circumstances);
	 
	 	(viii)	 	guarantee means any guarantee, letter of credit, bond, indemnity or similar
assurance against loss, or any obligation, direct or indirect, actual or
contingent, to purchase or assume any indebtedness of any person or to make an
investment in or loan to any person or to purchase assets of any person where,
in each case, such obligation is assumed in order to maintain or assist the
ability of such person to meet its indebtedness;
	 
	 	(ix)	 	a provision of law is a reference to that provision as amended
or re-enacted; and
	 
	 	(x)	 	a time of day is a reference to London time (except if
otherwise specified)

	 	(b)	 	Section, clause and schedule headings are for ease of reference only
	 
	 	(c)	 	Unless a contrary indication appears, a term used in any other Finance Document
or in any notice given under or in connection with any Finance Document has the same
meaning in that Finance Document or notice as in this Agreement
	 
	 	(d)	 	A Default is “continuing” if it has not been remedied or waived
	 
	 	(e)	 	Any reference in this Agreement to:

	 	(i)	 	the Interest Period of a Letter of Credit will be construed as
a reference to the Term of that Letter of Credit;
	 
	 	(ii)	 	an amount borrowed includes any amount utilised by way of
Letter of Credit;
	 
	 	(iii)	 	a Utilisation made or to be made to a Borrower includes a
Letter of Credit issued on its behalf;
	 
	 	(iv)	 	a Lender funding its participation in a Utilisation includes a
Lender participating in a Letter of Credit;
	 
	 	(v)	 	amounts outstanding under this Agreement include amounts
outstanding under or in respect of any Letter of Credit;
	 
	 	(vi)	 	an outstanding amount of a Letter of Credit or a letter of
credit issued under an Ancillary Facility at any time is the maximum amount
that is or may be payable by a Borrower in respect of that Letter of Credit or
letter of credit at that time;
	 
	 	(vii)	 	a Borrower “repaying” or “prepaying” a Letter of Credit or a
letter of credit issued under an Ancillary Facility means:

21

 

	 	(A)	 	that Borrower providing cash cover for that
Letter of Credit or letter of credit;
	 
	 	(B)	 	the maximum amount payable under the Letter of
Credit or letter of credit being reduced or cancelled in accordance
with its terms; or
	 
	 	(C)	 	the relevant Fronting Bank or, as the case may
be, Ancillary Lender being satisfied (acting reasonably) that it has no
further liability under that Letter of Credit or letter of credit,

	 	 	 	and the amount by which a Letter of Credit or letter of credit is repaid or
prepaid under paragraphs (A) and (B) above is the amount of the relevant
cash cover, reduction or cancellation;
	 
	 	(viii)	 	a Borrower providing “cash cover” for a Letter of Credit or a letter of
credit issued under an Ancillary Facility means a Borrower paying an amount in
the currency of the Letter of Credit or letter of credit to an interest-bearing
account in the name of that Borrower and the following conditions being met:

	 	(A)	 	the account is with the relevant Fronting Bank
(if the cash cover is to be provided for all the Lenders) or with a
Lender or, as the case may be, Ancillary Lender (if the cash cover is
to be provided for that Lender or that Ancillary Lender);
	 
	 	(B)	 	until no amount is or may be outstanding under
that Letter of Credit or letter of credit, withdrawals from the account
may only be made to pay a Finance Party amounts due and payable to it
under this Agreement in respect of that Letter of Credit or, as the
case may be, under the relevant Ancillary Facility Document in respect
of that letter of credit or (and provided no Default or, as the case
may be, no default in respect of the relevant Ancillary Facility is
continuing) to the extent that amounts standing to the credit of such
account exceed the liability for which cash cover is provided; and
	 
	 	(C)	 	the Borrower has executed a security document,
in form and substance satisfactory to the Agent or the Finance Party
with which that account is held (in each case acting reasonably),
creating a first ranking security interest over that account; and

	 	(ix)	 	a claim being made under a Letter of Credit or a letter of
credit issued under an Ancillary Facility, or such a claim being paid by the
Lenders or an Ancillary Lender or a Fronting Bank (as appropriate), shall
include a reference to the inclusion of any amount due (actually or
contingently) from the Lenders, the Ancillary Lender or the Fronting Bank under
that Letter of Credit or letter of credit in any account taken for the purposes
of Rule 4.90 or Rule 2.85 of the Insolvency Rules 1986 in the insolvency
proceedings of the beneficiary of that Letter of Credit or any other person.

	1.3	 	Third party rights
	 
	 	 	Save as provided under clause 8.6(c) (Liability of the Obligors’ Agent) a person who is not
a Party has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to
enjoy the benefit of any term of this Agreement.

22

 

	2	 	The Facilities
	 
	2.1	 	The Facilities
	 
	 	 	Subject to the terms of this Agreement, the Lenders make available to the Borrowers:

	 	(a)	 	A multicurrency term loan facility in an aggregate amount equal to the Total
Facility A Commitments, which may be utilised:

	 	(i)	 	by Warwick International Group Limited, by drawing Loans up to
a maximum aggregate Base Currency Amount of U.S.$40,600,000; and
	 
	 	(ii)	 	by Chromalloy Holland B.V., by drawing Loans up to a maximum
aggregate Base Currency Amount of U.S.$8,000,000; and

	 	(b)	 	A multicurrency revolving letter of credit facility in an aggregate amount
equal to the Total Facility C Commitments, which may be utilised by Warwick
International Group Limited or another Borrower by Letters of Credit up to a maximum
aggregate Base Currency Amount outstanding at any time of U.S.$45,000,000 (part of
which may, from time to time and in an aggregate amount at any time up to the Total
Ancillary Limit, be designated as Ancillary Facilities).

	2.2	 	Finance Parties’ rights and obligations

	 	(a)	 	The obligations of each Finance Party under the Finance Documents are several.
Failure by a Finance Party to perform its obligations under the Finance Documents does
not affect the obligations of any other Party under the Finance Documents. No Finance
Party is responsible for the obligations of any other Finance Party under the Finance
Documents.
	 
	 	(b)	 	The rights of each Finance Party under or in connection with the Finance
Documents are separate and independent rights and any debt arising under the Finance
Documents to a Finance Party from an Obligor shall be a separate and independent debt.
	 
	 	(c)	 	A Finance Party may, except as otherwise stated in the Finance Documents,
separately enforce its rights under the Finance Documents.

	2.3	 	Obligors’ Agent

	 	(a)	 	Each Obligor irrevocably appoints the Obligors’ Agent to act on its behalf as
its agent in relation to the Finance Documents and irrevocably authorises:

	 	(i)	 	the Obligors’ Agent on its behalf to supply all information
concerning itself contemplated by this Agreement to the Finance Parties, to
give and receive all notices, consents and instructions (including Utilisation
Requests) under the Finance Documents, to agree, accept and execute on its
behalf all documents in connection with the Finance Documents (including
amendments and variations of and consents under any Finance Document), to
execute any new Finance Document and to take such other action as may be
necessary or desirable under or in connection with the Finance Documents; and
	 
	 	(ii)	 	each Finance Party to give any notice, demand or other
communication to that Obligor pursuant to the Finance Documents to the
Obligors’ Agent.

23

 

	 	(b)	 	Each Obligor confirms that:

	 	(i)	 	it will be bound by any action taken by the Obligors’ Agent
under or in connection with the Finance Documents; and
	 
	 	(ii)	 	each Finance Party may rely on any action purported to be taken
by the Obligors’ Agent on behalf of that Obligor.

	2.4	 	Acts of the Obligors’ Agent

	 	(a)	 	The respective liabilities of each of the Obligors under the Finance Documents
shall not be in any way affected by:

	 	(i)	 	any actual or purported irregularity in any act done, or
failure to act, by the Obligors’ Agent;
	 
	 	(ii)	 	the Obligors’ Agent acting (or purporting to act) in any
respect outside any authority conferred upon it by any Obligor; or
	 
	 	(iii)	 	any actual or purported failure by, or inability of, the
Obligors’ Agent to inform any Obligor of receipt by it of any notification
under the Finance Documents.

	 	(b)	 	In the event of any conflict between any notices or other communications of the
Obligors’ Agent and any other Obligor, those of the Obligors’ Agent shall prevail.

	2.5	 	Inability to act
	 
	 	 	If, in the opinion of the Agent, the Obligors’ Agent is unable to perform its role as
Obligors’ Agent due to any of the circumstances described in clause 32.6 (Insolvency) or
clause 32.7 (Insolvency proceedings) applying to the Obligors’ Agent the Agent and the
Obligors shall enter into negotiations (for a period of no more than ten days) with a view
to agreeing a substitute agent of the Obligors. If no such substitute agent of the Obligors
has been approved by the Agent or if appropriate amendments have not been made to the
Finance Documents to effect the appointment of such substitute agent of the Obligors within
thirty days of the date of the commencement of the negotiations between the Agent and the
Obligors described above, the Obligors’ Agent shall cease to be the agent of the Obligors
and any acts in respect of the Finance Documents which prior to such date could be done by
the Obligors’ Agent on behalf of an Obligor shall on and after such date be done by the
relevant Obligor itself.
	 
	2.6	 	Liability of the Obligors’ Agent

	 	(a)	 	The Obligors’ Agent enters into this Agreement and the other Finance Documents
to which it is a party in its capacity as agent for the Obligors. Nothing in this
Agreement or in any other Finance Document constitutes the Obligors’ Agent as a trustee
or fiduciary of any other person.
	 
	 	(b)	 	Without limiting paragraph (c) below, the Obligors’ Agent shall not be liable
to any other Party for any action taken or not taken by it under or in connection with
any Finance Document, unless and to the extent directly caused by its gross negligence
or wilful misconduct.
	 
	 	(c)	 	No Party may take any proceedings against any officer, employee or agent of the
Obligors’ Agent in respect of any claim it might have against the Obligors’ Agent or in
respect of any act or omission of any kind by that officer, employee or agent (in their

24

 

	 	 	 	capacity as officer, employee or agent of the Obligors’ Agent) in relation to any
Finance Document. Any officer, employee or agent of the Obligors’ Agent may rely on
this clause and enforce its terms under the Contracts (Rights of Third Parties) Act
1999.

	3	 	Purpose
	 
	3.1	 	Purpose

	 	(a)	 	Each Borrower shall apply all amounts borrowed by it under Facility A towards
the general corporate and working capital requirements of Sequa and any of its
Subsidiaries financing the payment of dividends or capital distributions to its
shareholders (in the case of Chromalloy Holland B.V. following on-lending in part to
Chromalloy (Thailand) Ltd up to a maximum amount of U.S.$30,000,000) and in each case
in accordance with the Funds Flow Memorandum.
	 
	 	(b)	 	Each Borrower which utilises Facility C by way of Letter of Credit shall apply
that Letter of Credit towards the general corporate and working capital requirements of
Sequa and any of its Subsidiaries.
	 
	 	(c)	 	No amount borrowed under the Facilities shall be applied in any manner that may
be illegal or contravene any applicable law or regulation in any relevant jurisdiction
concerning financial assistance by a company for the acquisition of or subscription for
shares or concerning the protection of shareholders’ capital.

	3.2	 	Monitoring
	 
	 	 	No Finance Party is bound to monitor or verify the application of any amount borrowed or of
any Letter of Credit issued pursuant to this Agreement.
	 
	4	 	Conditions of Utilisation
	 
	4.1	 	Initial conditions precedent
	 
	 	 	No Borrower may deliver a Utilisation Request unless the Agent has received (or waived
receipt of) all of the documents and other evidence listed in part 1 of schedule 2
(Conditions precedent) in form and substance satisfactory to the Agent. The Agent shall
notify the Obligors’ Agent and the Lenders promptly upon being so satisfied.
	 
	4.2	 	Further conditions precedent

	 	(a)	 	The Lenders will only be obliged to comply with clause 11.4 (Lenders’
participation) if on the date of the Utilisation Request and on the proposed
Utilisation Date:

	 	(i)	 	in the case of a Rollover Loan, no Event of Default is
continuing or would result from the proposed Loan and, in the case of any other
Utilisation, no Default is continuing or would result from the proposed
Utilisation; and
	 
	 	(ii)	 	the Repeating Representations to be made by each Obligor are
true in all material respects.

	 	(b)	 	The Lenders will only be obliged to comply with clause 14.3 (Change of
currency) if, on the first day of an Interest Period, no Event of Default is continuing
or would result from the change of currency and the Repeating Representations to be
made by each Obligor are true in all material respects.

25

 

	4.3	 	Conditions relating to Optional Currencies

	 	(a)	 	A currency will constitute an Optional Currency in relation to a Utilisation
if:

	 	(i)	 	it is readily available in the amount required and freely
convertible into the Base Currency in the Relevant Interbank Market on the
Quotation Day and the Utilisation Date for that Utilisation; and
	 
	 	(ii)	 	it is sterling or euro or has been approved by the Agent
(acting on the instructions of all the Lenders) on or prior to receipt by the
Agent of the relevant Utilisation Request or Selection Notice for that
Utilisation.

	 	(b)	 	If by the Specified Time the Agent has received a written request from the
Obligors’ Agent for a currency to be approved under clause 10.3(a)(ii) above, the Agent
will notify the Lenders of that request by the Specified Time. Based on any responses
received by the Agent by the Specified Time, the Agent will confirm to the Obligors’
Agent by the Specified Time:

	 	(i)	 	whether or not the Lenders have granted their approval; and
	 
	 	(ii)	 	if approval has been granted, the minimum amount for any
subsequent Utilisation in that currency (such minimum amount being as close as
reasonably practicable to the Optional Currency equivalent of the minimum
amount set out in clause 11.3(b)(i) (Currency and amount)).

	4.4	 	Maximum number of Utilisations

	 	(a)	 	A Borrower may not deliver a Utilisation Request if, as a result of the
proposed Utilisation, more than 17 Letters of Credit would be outstanding.
	 
	 	(b)	 	A Borrower may not request that a Facility A Loan be divided if, as a result of
the proposed division, more than 10 Facility A Loans would be outstanding.
	 
	 	(c)	 	A Borrower may not deliver a Utilisation Request or Selection Notice if as a
result Utilisations denominated in more than 3 Optional Currencies would be
outstanding.
	 
	 	(d)	 	Any Loan made by a single Lender under clause 14.2 (Unavailability of a
currency) shall not be taken into account in this clause 10.4.

	5	 	Utilisation – Loans
	 
	5.1	 	Delivery of a Utilisation Request
	 
	 	 	A Borrower may utilise a Facility by way of a Loan by delivery to the Agent of a duly
completed Utilisation Request not later than the Specified Time (or in relation to the first
Utilisation Date, such later time as the Agent may agree).
	 
	5.2	 	Completion of a Utilisation Request

	 	(a)	 	Each Utilisation Request for a Loan is irrevocable and will not be regarded as
having been duly completed unless:

	 	(i)	 	it specifies that it is for a Loan;
	 
	 	(ii)	 	it identifies the Facility to be utilised;

26

 

	 	(iii)	 	it identifies the relevant Borrower;
	 
	 	(iv)	 	the proposed Utilisation Date is a Business Day within the
Availability Period applicable to that Facility;
	 
	 	(v)	 	the currency and amount of the Utilisation comply with clause
11.3 (Currency and amount);
	 
	 	(vi)	 	the proposed Interest Period complies with clause 19 (Interest
Periods); and
	 
	 	(vii)	 	it specifies the account and bank (which must be in the
country of the currency of the Utilisation or, in the case of euro, a
Participating Member State in which banks are open for general business on that
day or London) to which the proceeds of the Utilisation are to be credited.

	 	(b)	 	Only one Loan may be requested in each Utilisation Request.

	5.3	 	Currency and amount

	 	(a)	 	The currency specified in a Utilisation Request must be the Base Currency or an
Optional Currency.
	 
	 	(b)	 	The amount of the proposed Loan must be:

	 	(i)	 	if the currency selected is the Base Currency, a minimum of
U.S.$5,000,000 for Facility A or, if less, the Available Facility;
	 
	 	(ii)	 	if the currency selected is euro, the euro equivalent of the
minimum amount set out in paragraph (i) above in respect of Facility A or, if
less, the Available Facility;
	 
	 	(iii)	 	if the currency selected is sterling, the sterling equivalent
of the minimum amount set out in paragraph (i) above in respect of Facility A
or, if less, the Available Facility; or
	 
	 	(iv)	 	if the currency selected is an Optional Currency other than
sterling or euro, the minimum amount specified by the Agent pursuant to clause
10.3(b)(ii) (Conditions relating to Optional Currencies) or, if less, the
Available Facility; and
	 
	 	(v)	 	in any event such that its Base Currency Amount is less than or
equal to the Available Facility.

	 	(c)	 	The Base Currency Amount of the proposed Loan must be an amount which, when
aggregated with the amount of all other Facility A Loans borrowed by that Borrower,
will not exceed the limit specified for that Borrower in clause 8.1(a) (The
Facilities).

	5.4	 	Lenders’ participation

	 	(a)	 	If the conditions set out in this Agreement have been met, each Lender shall
make its participation in each Loan available by the Utilisation Date through its
Facility Office.
	 
	 	(b)	 	The amount of each Lender’s participation in each Loan will be equal to the
proportion borne by its Available Commitment to the Available Facility immediately
prior to making the Loan.

27

 

	 	(c)	 	The Agent shall determine the Base Currency Amount of each Loan which is to be
made in an Optional Currency and shall notify each Lender of the amount, currency and
the Base Currency Amount of each Loan and the amount of its participation in that Loan,
in each case by the Specified Time.

	6	 	Utilisation – Letters of Credit
	 
	6.1	 	General

	 	(a)	 	Clause 11 (Utilisation – Loans) does not apply to a Utilisation by way of
Letter of Credit.
	 
	 	(b)	 	In determining the amount of the Available Facility under Facility C and a
Lender’s L/C Proportion of a proposed Letter of Credit for the purposes of this
Agreement, the Available Commitment of a Lender will be calculated ignoring any cash
cover provided by a Borrower for outstanding Letters of Credit.

	6.2	 	Facility C
	 
	 	 	Subject to clause 15 (Ancillary Facilities), Facility C shall be utilised by way of Letters of Credit.
	 
	6.3	 	Delivery of a Utilisation Request for Letters of Credit
	 
	 	 	A Borrower may request a Letter of Credit to be issued by delivery to the Agent of a duly
completed Utilisation Request substantially in the form of part 3 of schedule 3 (Requests)
not later than the Specified Time.
	 
	6.4	 	Completion of a Utilisation Request for Letters of Credit
	 
	 	 	Each Utilisation Request for a Letter of Credit is irrevocable and will not be regarded as
having been duly completed unless:

	 	(a)	 	it specifies that it is for that Letter of Credit;
	 
	 	(b)	 	it identifies the Fronting Bank for that Letter of Credit;
	 
	 	(c)	 	it identifies the relevant Borrower;
	 
	 	(d)	 	the proposed Utilisation Date is a Business Day within the Availability Period;
	 
	 	(e)	 	the currency and amount of the Letter of Credit comply with clause 12.5
(Currency and amount);
	 
	 	(f)	 	the form of Letter of Credit is attached;
	 
	 	(g)	 	the Expiry Date of the Letter of Credit falls on or before the Termination
Date;
	 
	 	(h)	 	the delivery instructions for the Letter of Credit are specified; and
	 
	 	(i)	 	it confirms that the Letter of Credit is to support obligations of the
Obligors’ Agent or any of its Subsidiaries.

28

 

	6.5	 	Currency and amount

	 	(a)	 	The currency specified in a Utilisation Request must be the Base Currency or an
Optional Currency.
	 
	 	(b)	 	The amount of the proposed Letter of Credit must be an amount whose Base
Currency Amount is not more than the Available Facility under Facility C and which is:

	 	(i)	 	if the currency selected is the Base Currency, a minimum of
U.S.$1,000,000 or, if less, the Available Facility under Facility C;
	 
	 	(ii)	 	if the currency selected is euro, the euro equivalent of the
minimum amount set out in clause 12.5(b)(i) above or, if less, the Available
Facility under Facility C;
	 
	 	(iii)	 	if the currency selected is sterling, the sterling equivalent
of the minimum amount set out in paragraph (i) above or, if less, the Available
Facility under Facility C; or
	 
	 	(iv)	 	if the currency selected is an Optional Currency other than
sterling or euro the minimum amount specified by the Agent pursuant to clause
10.3(b)(ii) (Conditions relating to Optional Currencies) or, if less, the
Available Facility under Facility C.

	6.6	 	Issue of Letters of Credit

	 	(a)	 	If the conditions set out in this Agreement have been met, the relevant
Fronting Bank shall issue the Letter of Credit on the Utilisation Date.
	 
	 	(b)	 	The relevant Fronting Bank will only be obliged to comply with paragraph (a)
above if on the date of the Utilisation Request or Renewal Request and on the proposed
Utilisation Date:

	 	(i)	 	in the case of a Letter of Credit renewed in accordance with
clause 12.7 (Renewal of a Letter of Credit), no Event of Default is continuing
or would result from the proposed Utilisation and, in the case of any other
Utilisation, no Default is continuing or would result from the proposed
Utilisation; and
	 
	 	(ii)	 	the Repeating Representations to be made by each Obligor are
true in all material respects.

	 	(c)	 	The amount of each Lender’s participation in each Letter of Credit will be
equal to its L/C Proportion.
	 
	 	(d)	 	The Agent shall determine the Base Currency Amount of each Letter of Credit
which is to be issued in an Optional Currency and shall notify the relevant Fronting
Bank and each Lender of the details of the requested Letter of Credit and its
participation in that Letter of Credit by the Specified Time.

	6.7	 	Renewal of a Letter of Credit

	 	(a)	 	A Borrower may request that any Letter of Credit issued on its behalf be
renewed by delivery to the Agent of a Renewal Request by the Specified Time.

29

 

	 	(b)	 	The Finance Parties shall treat any Renewal Request in the same way as a
Utilisation Request for a Letter of Credit except that the conditions set out in clause
12.4(f) and 12.4(i) (Completion of a Utilisation Request for Letters of Credit) shall
not apply.
	 
	 	(c)	 	The terms of each renewed Letter of Credit shall be the same as those of the
relevant Letter of Credit immediately prior to its renewal, except that:

	 	(i)	 	its amount may be less or more than the amount of the Letter of
Credit immediately prior to its renewal; and
	 
	 	(ii)	 	its Term shall start on the date which was the Expiry Date of
the Letter of Credit immediately prior to its renewal (or such earlier date as
is specified in the Renewal Request), and shall end on the proposed Expiry Date
specified in the Renewal Request.

	 	(d)	 	If the conditions set out in this Agreement have been met, the relevant
Fronting Bank shall amend and re-issue any Letter of Credit pursuant to a Renewal
Request.

	6.8	 	Revaluation of Letters of Credit

	 	(a)	 	If any Letter of Credit or any letter of credit issued under an Ancillary
Facility is denominated in an Optional Currency, the Agent shall, at six-monthly
intervals after the date of this Agreement, recalculate the Base Currency Amount of
that Letter of Credit or that letter of credit by notionally converting into the Base
Currency the outstanding amount of that Letter of Credit or that letter of credit on
the basis of the Agent’s Spot Rate of Exchange on the date of calculation.
	 
	 	(b)	 	A Borrower shall, if requested by the Agent within five Business Days of any
calculation under paragraph (a) above, ensure that within three Business Days
sufficient Facility C Utilisations or, as the case may be, sufficient utilisations
under the Ancillary Facilities are prepaid to prevent the Base Currency Amount of the
Facility C Utilisations or, as the case may be, the Base Currency Amount of the
utilisations under the Ancillary Facilities exceeding the Total Facility C Commitments
or, as the case may be, the Total Ancillary Limit, in each case following any
adjustment to a Base Currency Amount under paragraph (a) above.
	 
	 	(c)	 	If, following any calculation under paragraph (a) above, the amount of cash
cover provided by a Borrower in respect of all Letters of Credit issued on its behalf
or, as the case may be, all letters of credit issued under an Ancillary Facility on its
behalf, exceeds the maximum amount that is or may be payable by that Borrower in
respect of all Letters of Credit issued on its behalf or, as the case may be, all
letters of credit under an Ancillary Facility issued on its behalf, the relevant
Borrower may, provided no Event of Default or event of default under the relevant
Ancillary Facility is continuing, withdraw an amount equal to such excess from the
relevant cash collateral account.

	6.9	 	Transfer of Existing Letters of Credit

	 	(a)	 	A Borrower may request in a Utilisation Request that any Existing Letter of
Credit be transferred to Facility C and be treated as a Letter of Credit for the
purposes of this Agreement.
	 
	 	(b)	 	The Finance Parties shall treat such a request in the same way as any other
Utilisation Request for a Letter of Credit.

30

 

	 	(c)	 	If the conditions set out in this Agreement have been met, the relevant
Fronting Bank shall agree to such request on the proposed Utilisation Date and each
relevant Existing Letter of Credit shall on and from the Utilisation Date be deemed to
be a Letter of Credit issued by that Fronting Bank for the purposes of this Agreement.

	7	 	Letters of Credit
	 
	7.1	 	Immediately payable
	 
	 	 	If a Letter of Credit or any amount outstanding under a Letter of Credit is expressed to be
immediately payable, the Borrower that requested the issue of that Letter of Credit shall
repay or prepay that amount within 3 Business Days’ of demand by the Fronting Bank (or, if
later, upon the Fronting Bank becoming liable to pay such amount under the Letter of
Credit).
	 
	7.2	 	Assignments and transfers

	 	(a)	 	Notwithstanding any other provision of this Agreement, the consent of the
relevant Fronting Bank is required for any assignment or transfer of any Lender’s
rights and/or obligations in respect of any outstanding Letter of Credit.
	 
	 	(b)	 	If paragraph (a) above and the conditions and procedure for transfer specified
in clause 33 (Changes to the Lenders) are satisfied, then on the Transfer Date the
Fronting Bank and the New Lender shall acquire the same rights and assume the same
obligations between themselves as they would have acquired and assumed had the New
Lender been an Original Lender with the rights and/or obligations acquired or assumed
by it as a result of the transfer and to that extent the Fronting Bank and the Existing
Lender shall each be released from further obligations to each other under this
Agreement.

	7.3	 	Fees payable in respect of Letters of Credit

	 	(a)	 	Each Borrower shall pay to the Agent (for the account of each Facility C
Lender) a letter of credit fee in arrears computed at the same rate as the Margin on
the outstanding amount of each Letter of Credit requested by it for the period from the
issue of that Letter of Credit until its Expiry Date. This fee shall be distributed
according to each Lender’s L/C Proportion of that Letter of Credit.
	 
	 	(b)	 	The accrued letter of credit fee on a Letter of Credit shall be payable on the
last day of each successive period of three Months (or such shorter period as shall end
on the Expiry Date for that Letter of Credit) starting on the date of issue of that
Letter of Credit.
	 
	 	(c)	 	Each Borrower which requests a Fronting Bank to front or issue a Letter of
Credit shall pay to that Fronting Bank a fronting fee in respect of such Letter of
Credit in the amount and at the times agreed in a Fee Letter between that Fronting Bank
and that Borrower.
	 
	 	(d)	 	If a Borrower cash covers any part of a Letter of Credit then:

	 	(i)	 	the letter of credit fee payable for the account of each Lender
(and any fronting fee payable to the relevant Fronting Bank) shall continue to
be payable until the expiry of the Letter of Credit; and

31

 

	 	(ii)	 	the Borrower will be entitled to withdraw the interest accrued
on the cash cover to pay those fees.

	7.4	 	Claims under a Letter of Credit

	 	(a)	 	Each Borrower irrevocably and unconditionally authorises the relevant Fronting
Bank to pay any claim made or purported to be made under a Letter of Credit requested
by it and which appears on its face to be in order (claim).
	 
	 	(b)	 	Each Borrower which requested a Letter of Credit shall immediately on demand
pay to the Agent for the relevant Fronting Bank an amount equal to the amount of any
claim under that Letter of Credit (provided that no Borrower shall be required to pay
any such amount to the Agent prior to the date which is three Business Days before the
date on which the Fronting Bank is required to pay the relevant claim).
	 
	 	(c)	 	Each Borrower acknowledges that the Lenders and any Fronting Bank:

	 	(i)	 	are not obliged to carry out any investigation or seek any
confirmation from any other person before paying a claim; and
	 
	 	(ii)	 	deal in documents only and will not be concerned with the
legality of a claim or any underlying transaction or any available set-off,
counterclaim or other defence of any person.

	 	(d)	 	The obligations of a Borrower under this clause 13 will not be affected by:

	 	(i)	 	the sufficiency, accuracy or genuineness of any claim or any
other document; or
	 
	 	(ii)	 	any incapacity of, or limitation on the powers of, any person
signing a claim or other document.

	7.5	 	Indemnities

	 	(a)	 	Each Borrower shall within three Business Days of demand indemnify each
Fronting Bank against any cost, loss or liability incurred by it (otherwise than by
reason of that Fronting Bank’s gross negligence or wilful misconduct) in acting as the
Fronting Bank under a Letter of Credit requested by that Borrower.
	 
	 	(b)	 	Any Lender which is participating in a Letter of Credit shall (according to its
L/C Proportion) immediately on demand indemnify the relevant Fronting Bank against any
cost, loss or liability incurred by that Fronting Bank (otherwise than by reason of
that Fronting Bank’s gross negligence or wilful misconduct) in acting as the Fronting
Bank under any Letter of Credit, including, without limitation, any amount paid by that
Fronting Bank under that Letter of Credit, whether or not demand has been made on the
Borrower in respect of that amount (in each case, unless the Fronting Bank has been
reimbursed by an Obligor pursuant to a Finance Document).
	 
	 	(c)	 	If any Lender is not permitted (by its constitutional documents or any
applicable law) to comply with paragraph (b) above, then that Lender will not be
obliged to comply with paragraph (b) above and shall instead be deemed to have taken,
on the date the

32

 

	 	 	 	Letter of Credit is issued (or, if later, on the date the Lender’s participation in
the Letter of Credit is transferred or assigned to the Lender in accordance with the
terms of this Agreement), an undivided interest and participation in the Letter of
Credit in an amount equal to its L/C Proportion of that Letter of Credit. On
receipt of demand from the Agent, that Lender shall pay to the Agent (for the
account of the relevant Fronting Bank) an amount equal to its L/C Proportion of the
amount demanded under paragraph (b) above.
	 
	 	(d)	 	The Borrower which requested a Letter of Credit shall within three Business
Days of demand by the Agent reimburse any Lender for any payment it makes to a Fronting
Bank under this clause 13.5 in respect of that Letter of Credit (and, if such
reimbursement occurs after the date upon which that Lender has made such payment to
that Fronting Bank, that Borrower shall also pay that Lender interest for the period
between payment by the Lender and reimbursement by the Borrower, at a rate per annum
equal to the aggregate of the rate certified by that Lender to be its cost of funding
such payment and the Margin).
	 
	 	(e)	 	The obligations of each Lender under this clause 13 are continuing obligations
and will extend to the ultimate balance of sums payable by that Lender in respect of
any Letter of Credit, regardless of any intermediate payment or discharge in whole or
in part.
	 
	 	(f)	 	The obligations of any Lender under this clause 13 will not be affected by any
act, omission, matter or thing which, but for this clause 13, would reduce, release or
prejudice any of its obligations under this clause 13 (without limitation and whether
or not known to it or any other person) including:

	 	(i)	 	any time, waiver or consent granted to, or composition with,
any Obligor, any beneficiary under a Letter of Credit or any other person;
	 
	 	(ii)	 	the release of any other Obligor or any other person under the
terms of any composition or arrangement with any creditor of any member of the
Group;
	 
	 	(iii)	 	the taking, variation, compromise, exchange, renewal or
release of, or refusal or neglect to perfect, take up or enforce, any rights
against, or Security over assets of, any Obligor, any beneficiary under a
Letter of Credit or any other person or any non-presentation or non-observance
of any formality or other requirement in respect of any instrument or any
failure to realise the full value of any Security;
	 
	 	(iv)	 	any incapacity or lack of power, authority or legal personality
of or dissolution or change in the members or status of an Obligor, any
beneficiary under a Letter of Credit or any other person;
	 
	 	(v)	 	any amendment (however fundamental) or replacement of a Finance
Document, any Letter of Credit or any other document or Security;
	 
	 	(vi)	 	any unenforceability, illegality or invalidity of any
obligation of any person under any Finance Document, any Letter of Credit or
any other document or Security; or
	 
	 	(vii)	 	any insolvency or similar proceedings.

33

 

	7.6	 	Rights of contribution
	 
	 	 	No Obligor will be entitled to any right of contribution or indemnity from any Finance Party
in respect of any payment it may make under this clause 13.
	 
	7.7	 	Role of the Fronting Bank

	 	(a)	 	Nothing in this Agreement constitutes any Fronting Bank as a trustee or
fiduciary of any other person.
	 
	 	(b)	 	No Fronting Bank shall be bound to account to any Lender for any sum or the
profit element of any sum received by it for its own account.
	 
	 	(c)	 	A Fronting Bank may accept deposits from, lend money to and generally engage in
any kind of banking or other business with any member of the Group.
	 
	 	(d)	 	A Fronting Bank may rely on:

	 	(i)	 	any representation, notice or document believed by it to be
genuine, correct and appropriately authorised; and
	 
	 	(ii)	 	any statement made by a director, authorised signatory or
employee of any person regarding any matters which may reasonably be assumed to
be within his knowledge or within his power to verify.

	 	(e)	 	A Fronting Bank may engage, pay for and rely on the advice or services of any
lawyers, accountants, surveyors or other experts.
	 
	 	(f)	 	A Fronting Bank may act in relation to the Finance Documents through its
personnel and agents.
	 
	 	(g)	 	No Fronting Bank is responsible for:

	 	(i)	 	the adequacy, accuracy and/or completeness of any information
(whether oral or written) supplied by it, the Agent, the Security Agent, the
Arranger, an Obligor or any other person given in or in connection with any
Finance Document; or
	 
	 	(ii)	 	the legality, validity, effectiveness, adequacy or
enforceability of any Finance Document or any other agreement, arrangement or
document entered into, made or executed in anticipation of or in connection
with any Finance Document.

	7.8	 	Exclusion of liability

	 	(a)	 	Without limiting paragraph (b) below, no Fronting Bank will be liable for any
action taken by it under or in connection with any Finance Document, except to the
extent directly caused by its gross negligence or wilful misconduct.
	 
	 	(b)	 	No Party (other than a Fronting Bank) may take any proceedings against any
officer, employee or agent of that Fronting Bank in respect of any claim it might have
against that Fronting Bank or in respect of any act or omission of any kind by that
officer, employee or agent in relation to any Finance Document and any officer,
employee or agent of that Fronting Bank may rely on this clause 13.8.

34

 

	7.9	 	Credit appraisal by the Lenders
	 
	 	 	Without affecting the responsibility of any Obligor for information supplied by it or on its
behalf in connection with any Finance Document, each Lender confirms to the Agent and to
each Fronting Bank that it has been, and will continue to be, solely responsible for making
its own independent appraisal and investigation of all risks arising under or in connection
with any Finance Document, including, but not limited to, those listed in clause 35.15(a) to
clause 35.15(d) (Credit appraisal by the Lenders).
	 
	7.10	 	Address for notices
	 
	 	 	The address and fax number (and the department or officer, if any, for whose attention the
communication is to be made) of any Fronting Bank for any communication or document to be
made or delivered under or in connection with the Finance Documents will be that notified in
writing to the Agent prior to the date of this Agreement or any substitute address, fax
number or department or officer as the Fronting Bank may notify to the Agent by not less
than five Business Days’ notice.
	 
	8	 	Optional Currencies
	 
	8.1	 	Selection of currency

	 	(a)	 	A Borrower (or the Obligors’ Agent on behalf of a Borrower) shall select the
currency of a Utilisation:

	 	(i)	 	(in the case of an initial Utilisation) in a Utilisation
Request; and
	 
	 	(ii)	 	(afterwards in relation to a Facility A Loan made to it) in a
Selection Notice,

	 	 	 	in each case subject to compliance with clause 10.4 (Maximum number of
Utilisations).
	 
	 	(b)	 	If a Borrower (or the Obligors’ Agent on behalf of a Borrower) fails to issue a
Selection Notice in relation to a Facility A Loan, it shall be deemed to have requested
that the Loan will remain denominated for its next Interest Period in the same currency
in which it is then outstanding.
	 
	 	(c)	 	If a Borrower (or the Obligors’ Agent on behalf of a Borrower) issues a
Selection Notice requesting a change of currency and the first day of the requested
Interest Period is not a Business Day for the new currency, the Agent shall promptly
notify the Borrower and the Lenders and the Loan will remain in the existing currency
(with Interest Periods running from one Business Day until the next Business Day) until
the next day which is a Business Day for both currencies, on which day the requested
Interest Period will begin.

	8.2	 	Unavailability of a currency
	 
	 	If before the Specified Time on any Quotation Day:

	 	(a)	 	a Lender notifies the Agent that the Optional Currency requested is not readily
available to it in the amount required; or
	 
	 	(b)	 	a Lender notifies the Agent that compliance with its obligation to participate
in a Loan in the proposed Optional Currency would contravene a law or regulation
applicable to it,

35

 

	 	 	the Agent will give notice to the relevant Borrower (or the Obligors’ Agent on behalf of the
relevant Borrower) to that effect by the Specified Time on that day. In this event, any
Lender that gives notice pursuant to this clause 14.2 will be required to participate in the
Loan in the Base Currency (in an amount equal to that Lender’s proportion of the Base
Currency Amount or, in respect of a Rollover Loan, an amount equal to that Lender’s
proportion of the Base Currency Amount of the Rollover Loan that is due to be made) and its
participation will be treated as a separate Loan denominated in the Base Currency during
that Interest Period.
	 
	8.3	 	Change of currency

	 	(a)	 	If a Facility A Loan is to be denominated in different currencies during two
successive Interest Periods:

	 	(i)	 	if the currency for the second Interest Period is an Optional
Currency, the amount of the Loan in that Optional Currency will be calculated
by the Agent as the amount of that Optional Currency equal to the Base Currency
Amount of the Loan at the Agent’s Spot Rate of Exchange at the Specified Time;
	 
	 	(ii)	 	if the currency for the second Interest Period is the Base
Currency, the amount of the Loan will be equal to the Base Currency Amount;
	 
	 	(iii)	 	(unless the Agent and the relevant Borrower agree otherwise in
accordance with clause 14.3(b) below) the Borrower that has borrowed the Loan
shall repay it on the last day of the first Interest Period in the currency in
which it was denominated for that Interest Period; and
	 
	 	(iv)	 	(subject to clause 10.2 (Further conditions precedent)) the
Lenders shall re-advance the Loan in the new currency in accordance with clause
14.5 (Agent’s calculations).

	 	(b)	 	If the Agent and the Borrower that has borrowed the Facility A Loan agree, the
Agent shall:

	 	(i)	 	apply the amount paid to it by the Lenders pursuant to clause
14.3(a)(iv) above (or so much of that amount as is necessary) in or towards
purchase of an amount in the currency in which the Facility A Loan is
outstanding for the first Interest Period; and
	 
	   	(ii)	 	use the amount it purchases in or towards satisfaction of the
relevant Borrower’s obligations under clause 14.3(a)(iii) above.

	 	(c)	 	If the amount purchased by the Agent pursuant to clause 14.3(b)(i) above is
less than the amount required to be repaid by the relevant Borrower, the Agent shall
promptly notify that Borrower and that Borrower shall, on the last day of the first
Interest Period, pay an amount to the Agent (in the currency of the outstanding
Facility A Loan for the first Interest Period) equal to the difference.
	 
	 	(d)	 	If any part of the amount paid to the Agent by the Lenders pursuant to clause
14.3(a)(iv) above is not needed to purchase the amount required to be repaid by the
relevant Borrower, the Agent shall promptly notify that Borrower and pay that Borrower,
on the last day of the first Interest Period, that part of that amount (in the new
currency).

36

 

	8.4	 	Same Optional Currency during successive Interest Periods

	 	(a)	 	If a Facility A Loan is to be denominated in the same Optional Currency during
two successive Interest Periods, the Agent shall calculate the amount of the Facility A
Loan in the Optional Currency for the second of those Interest Periods (by calculating
the amount of Optional Currency equal to the Base Currency Amount of that Facility A
Loan at the Agent’s Spot Rate of Exchange at the Specified Time) and (subject to
paragraph (b) below):

	 	(i)	 	if the amount calculated is less than the existing amount of
that Facility A Loan in the Optional Currency during the first Interest Period,
promptly notify the Borrower that has borrowed that Facility A Loan and that
Borrower shall pay, on the last day of the first Interest Period, an amount
equal to the difference; or
	 
	 	(ii)	 	if the amount calculated is more than the existing amount of
that Facility A Loan in the Optional Currency during the first Interest Period,
promptly notify each Lender and the relevant Borrower and, if no Event of
Default is continuing and the relevant Borrower so requests, each Lender shall,
on the last day of the first Interest Period, pay its participation in an
amount equal to the difference.

	 	(b)	 	If the calculation made by the Agent pursuant to paragraph (a) above shows that
the amount of the Facility A Loan in the Optional Currency for the second of those
Interest Periods converted into the Base Currency at the Agent’s Spot Rate of Exchange
used in calculating the Base Currency Amount of that Loan has increased or decreased by
less than 5 per cent. compared to its Base Currency Amount (taking into account any
payments made pursuant to paragraph (a) above), no notification shall be made by the
Agent and no payment shall be required under paragraph (a) above.

	8.5	 	Agent’s calculations

	 	(a)	 	All calculations made by the Agent pursuant to this clause 14 will take into
account any repayment, prepayment, consolidation or division of Facility A Loans to be
made on the last day of the first Interest Period.
	 
	 	(b)	 	Each Lender’s participation in a Loan will, subject to clause 14.5(a) above, be
determined in accordance with clause 11.4(b) (Lenders’ participation).

	9	 	Ancillary Facilities
	 
	9.1	 	Establishment of Ancillary Facilities
	 
	 	 	One or more Ancillary Facilities may from time to time be established in favour of a
Borrower under Facility C in accordance with this clause 15 by designating all or part of
the Facility C Commitment of a Lender as an Ancillary Commitment.
	 
	9.2	 	Types of Ancillary Facility
	 
	 	 	Each Ancillary Facility shall comprise letter of credit facilities.

37

 

	9.3	 	Request for Ancillary Facilities

	 	(a)	 	A Borrower under Facility C may, at any time, request the establishment of an
Ancillary Facility by delivery to the Agent of a duly completed Ancillary Facility
Request.
	 
	 	(b)	 	An Ancillary Facility Request relating to a proposed Ancillary Facility will
not be regarded as duly completed unless it identifies:

	 	(i)	 	the Borrower(s) (which shall be a Borrower or Borrowers under
Facility C) under that Ancillary Facility;
	 
	 	(ii)	 	the Ancillary Lender which is to make available that Ancillary
Facility;
	 
	 	(iii)	 	the type of facility to comprise that Ancillary Facility
(which must comply with clause 15.2 (Types of Ancillary Facility);
	 
	 	(iv)	 	the date (the Commencement Date) on which that Ancillary
Facility is to become available (which must be a date on which Facility C is
available to be drawn and must not be less than 5 Business Days after the date
on which the Agent receives the Ancillary Facility Request);
	 
	 	(v)	 	the expiry date of that Ancillary Facility (which must fall on
or before the Termination Date applicable to Facility C);
	 
	 	(vi)	 	the amount of the Ancillary Commitment (which must be
denominated in the Base Currency) which is to apply to that Ancillary Facility;
	 
	 	(vii)	 	the currency or currencies (which must comply with clause
15.3(c) below) in which utilisations under that Ancillary Facility may be
requested;
	 
	 	(viii)	 	the margin, commitment fee and other fees payable in respect of that
Ancillary Facility; and
	 
	 	(ix)	 	such other details in relation to that Ancillary Facility as
the Agent may reasonably require.

	 	(c)	 	An Ancillary Facility shall only be available for utilisation in the Base
Currency or a currency which:

	 	(i)	 	is readily available in the amount required and freely
convertible into the Base Currency in the Relevant Interbank Market on the date
for utilisation of that Ancillary Facility; and
	 
	 	(ii)	 	is sterling or euro or Canadian dollars or has been approved by
the Agent (acting on the instructions of all the Lenders) on or prior to
receipt by the Agent of the Ancillary Facility Request for that Ancillary
Facility.

	 	(d)	 	The Agent shall, promptly after receipt by it of an Ancillary Facility Request,
notify each Lender of that Ancillary Facility Request.

38

 

	9.4	 	Grant of Ancillary Facility
	 
	 	The Lender identified in a duly completed Ancillary Facility Request shall become an
Ancillary Lender authorised to make the proposed Ancillary Facility available with effect
from the proposed Commencement Date, if the following conditions are fulfilled:

	 	(a)	 	the proposed Ancillary Commitment under that Ancillary Facility is equal to or
less than the Available Commitment of that Lender under Facility C on that Commencement
Date;
	 
	 	(b)	 	the proposed Ancillary Commitment under that Ancillary Facility will not, when
aggregated with the Ancillary Commitments under all other Ancillary Facilities in
effect on that Commencement Date, exceed the Total Ancillary Limit; and
	 
	 	(c)	 	the proposed Ancillary Lender has notified the Agent by that Commencement Date
that it agrees to make available that Ancillary Facility.

	9.5	 	Adjustments to Revolving Facility Commitment

	 	(a)	 	The Facility C Commitment of a Lender which is an Ancillary Lender shall be
reduced by the amount of its Ancillary Commitments.
	 
	 	(b)	 	If and to the extent that:

	 	(i)	 	any Ancillary Facility expires, or is cancelled (in whole or in
part) or is otherwise reduced in accordance with clause 15.8 (Voluntary
cancellation of Ancillary Facilities); and
	 
	 	(ii)	 	no amount is or may be payable to or by the Ancillary Lender in
respect of that Ancillary Facility (or the relevant part of it),

	 	 	 	the Facility C Commitment of the relevant Lender will immediately be increased by an
amount equal to the amount of the Ancillary Commitment of that Ancillary Facility
(or, if less, that part of it which has expired or been cancelled).

	9.6	 	Terms of Ancillary Facilities

	 	(a)	 	The terms applicable to each Ancillary Facility shall be as agreed between the
relevant Ancillary Lender and the relevant Borrower (as set out in the applicable
Ancillary Facility Document), provided that:

	 	(i)	 	those terms shall be consistent with this clause 15 and the
details set out in the Ancillary Facility Request;
	 
	 	(ii)	 	utilisations under an Ancillary Facility shall be used only for
the general corporate or working capital requirements of the Obligors’ Agent
and its Subsidiaries; and
	 
	 	(iii)	 	the rate of interest, fees and other remuneration in respect
of the Ancillary Facility shall be based upon the normal market rates and terms
from time to time of that Ancillary Lender.

	 	(b)	 	Any variation in respect of the matters referred to in clause 15.3(b) (Request
for Ancillary Facilities) to any Ancillary Facility shall be in accordance with and
subject to this clause 15.

39

 

	 	(c)	 	In the case of any inconsistency between any term of an Ancillary Facility and
any term of this Agreement, this Agreement shall prevail.

	9.7	 	Limits on Ancillary Facilities
	 
	 	 	Each Unit Parent shall ensure that:

	 	(a)	 	the aggregate of all Ancillary Commitments does not at any time exceed the
Total Ancillary Limit; and
	 
	 	(b)	 	the Ancillary Outstandings under any Ancillary Facility do not at any time
exceed the Ancillary Commitment under that Ancillary Facility.

	9.8	 	Voluntary cancellation of Ancillary Facilities
	 
	 	 	The Obligors’ Agent may, if it gives the Agent and the relevant Ancillary Lender not less
than 3 Business Days’ prior notice, cancel the whole or any part of the Ancillary Commitment
under an Ancillary Facility.
	 
	9.9	 	Notice in respect of Ancillary Facilities

	 	(a)	 	Each Ancillary Lender shall promptly notify the Agent of:

	 	(i)	 	the establishment by it of any Ancillary Facility and the
applicable Commencement Date;
	 
	 	(ii)	 	the amount of any Ancillary Facility which is cancelled or
expires and the date of any such cancellation or expiry; and
	 
	 	(iii)	 	any other information relating to any Ancillary Facility
provided by it as the Agent may request, including the Ancillary Outstandings
from time to time.

	 	(b)	 	The Agent may assume, unless it has received notice to the contrary in its
capacity as agent for the Lenders, that no Ancillary Facility has expired or been
cancelled in whole or part.
	 
	 	(c)	 	Each Obligor consents to all information described in paragraph (a) above being
disclosed to the Finance Parties.

	9.10	 	Ancillary Outstandings
	 
	 	 	The relevant Borrower under an Ancillary Facility shall repay or pay on the due date each
amount payable under that Ancillary Facility.
	 
	10	 	Repayment
	 
	10.1	 	Repayment of Facility A Loans

	 	(a)	 	Subject to clause 17 (Prepayment and cancellation), the Facility A Loans shall
be repaid by the relevant Borrower on each of the following dates (in the currency in
which the Facility A Loans are then outstanding) in an aggregate Base Currency amount
equal to the amount set out opposite that date in the following table:

40

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Chromalloy Holland
	 	 	Warwick International Group	 	B.V. Repayment
	 	 	Limited Repayment Instalment	 	Instalment (U.S.$
	Facility A Repayment Date	 	(U.S.$ amount)	 	amount)
	30 June 2007
	 	 	$	2,100,000	 	 	 	$	534,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	30 September 2007
	 	 	$	2,100,000	 	 	 	$	534,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	31 December 2007
	 	 	$	2,100,000	 	 	 	$	534,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	31 March 2008
	 	 	$	2,100,000	 	 	 	$	534,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	30 June 2008
	 	 	$	2,100,000	 	 	 	$	534,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	30 September 2008
	 	 	$	2,100,000	 	 	 	$	534,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	31 December 2008
	 	 	$	2,100,000	 	 	 	$	534,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	31 March 2009
	 	 	$	2,100,000	 	 	 	$	534,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	30 June 2009
	 	 	$	2,100,000	 	 	 	$	534,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	30 September 2009
	 	 	$	2,100,000	 	 	 	$	534,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	31 December 2009
	 	 	$	2,100,000	 	 	 	$	534,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	31 March 2010
	 	 	$	2,100,000	 	 	 	$	534,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	30 June 2010
	 	 	$	2,100,000	 	 	 	$	534,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	30 September 2010
	 	 	$	2,100,000	 	 	 	$	534,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	Termination Date
	 	 	$	11,200,000	 	 	 	$	524,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	Total
	 	 	$	40,600,000	 	 	 	$	8,000,000	 

	 	(b)	 	If the aggregate amount of the Facility A Loans outstanding at the end of the
Availability Period for Facility A is less than U.S.$100,000,000, the amount of each
Facility A Repayment Instalment shall be reduced accordingly on a pro rata basis.
	 
	 	(c)	 	On each Facility A Repayment Date, each Borrower shall repay that proportion of
the outstanding Facility A Loans drawn by it equal to the proportion borne by the
Facility A Repayment Instalment due on that date to the aggregate amount of the
Facility A Loans outstanding at the beginning of that date and each such repayment
shall be applied against such outstanding Facility A Loans drawn by the relevant
Borrower as that Borrower may select.
	 
	 	(d)	 	No Borrower may reborrow any part of Facility A which is repaid.

	10.2	 	Not Used.

41

 

	10.3	 	Repayment of Facility C
	 
	 	 	On the Termination Date applicable to Facility C, each Borrower under Facility C shall repay
all amounts (if any) owing or outstanding under Facility C.
	 
	10.4	 	Repayment of Ancillary Facilities
	 
	 	 	On the Termination Date applicable to Facility C, each Borrower under an Ancillary Facility
shall repay all amounts (if any) owing or outstanding under that Ancillary Facility.
	 
	11	 	Prepayment and cancellation
	 
	11.1	 	Illegality

	 	(a)	 	If it becomes unlawful in any applicable jurisdiction for a Lender to perform
any of its obligations as contemplated by this Agreement or to fund or maintain its
participation in any Utilisation:

	 	(i)	 	that Lender shall promptly notify the Agent upon becoming aware
of that event;
	 
	 	(ii)	 	upon the Agent notifying the Obligors’ Agent the Commitment of
that Lender will be immediately cancelled; and
	 
	 	(iii)	 	each Borrower shall repay that Lender’s participation in the
Utilisations made to that Borrower on the last day of the Interest Period for
each Utilisation occurring after the Agent has notified the Obligors’ Agent or,
if earlier, the date specified by the Lender in the notice delivered to the
Agent (being no earlier than the last day of any applicable grace period
permitted by law).

	 	(b)	 	If it becomes unlawful in any applicable jurisdiction for a Fronting Bank to
perform any of its obligations as contemplated by this Agreement or to fund or maintain
its participation in any Utilisation:

	 	(i)	 	that Fronting Bank shall promptly notify the Agent upon
becoming aware of that event;
	 
	 	(ii)	 	upon the Agent notifying the Obligors’ Agent, that Fronting
Banking shall not be obliged to issue any Letter of Credit;
	 
	 	(iii)	 	each Unit Parent shall use its best endeavours to procure the
release of each outstanding Letter of Credit issued by that Fronting Bank; and
	 
	 	(iv)	 	upon the Agent notifying the Obligors’ Agent, Facility C shall
cease to be available for the issue of Letters of Credit by that Fronting Bank
and each Borrower, as appropriate, shall provide full cash cover in respect of
the aggregate face value (calculated in the Base Currency) of all Letters of
Credit issued by that Fronting Bank on the then Expiry Date of such Letters of
Credit or, if earlier, the date specified by the Fronting Bank in the notice
delivered to the Agent (being no earlier than the last day of the applicable
grace period permitted by law).

42

 

	11.2	 	Change of control

	 	(a)	 	Subject to paragraph (d) below, if any person or group of persons acting in
concert gains control of the Obligors’ Agent:

	 	(i)	 	the Obligors’ Agent shall promptly notify the Agent upon
becoming aware of that event;
	 
	 	(ii)	 	a Lender shall not be obliged to fund a Utilisation (except for
a Rollover Loan) or, as the case may be, an Ancillary Lender shall not be
obliged to issue any Letter of Credit under any Ancillary Facility;
	 
	 	(iii)	 	the Obligors’ Agent and the Agent shall enter into
negotiations in good faith with a view to agreeing to continue to make the
Facilities available and to agreeing any amendments to this Agreement which may
be necessary as a result of the change of control; and
	 
	 	(iv)	 	if no agreement is reached within 30 days of the person or
group of persons gaining control of the Obligors’ Agent, the Agent shall, by
not less than 5 days’ notice to the Obligors’ Agent, cancel the Commitments and
declare all outstanding Loans, together with accrued interest, and all other
amounts accrued under the Finance Documents immediately due and payable,
whereupon the Commitments will be cancelled and all such outstanding amounts
will become immediately due and payable and the Agent shall declare that full
cash cover in respect of each Letter of Credit and each Letter of Credit
issued under an Ancillary Facility is immediately due and payable whereupon it
shall become immediately due and payable.

	 	(b)	 	For the purpose of paragraph (a) above control has the meaning given to it in
section 416(2) of the Taxes Act.
	 
	 	(c)	 	For the purpose of paragraph (a) above acting in concert has the meaning given
to it in the City Code on Takeovers and Mergers.
	 
	 	(d)	 	For the purposes of paragraph (a) above; the terms “person” or “group of
persons” shall be deemed to exclude Norman E. Alexander (Alexander), the estate of
Alexander or any trust for the benefit of Alexander or the estate of Alexander.

	11.3	 	Voluntary cancellation
	 
	 	 	The Obligors’ Agent may, if it gives the Agent not less than three Business Days’ (or such
shorter period as the Majority Lenders may agree) prior notice, cancel the whole or any part
(being a minimum amount of U.S.$5,000,000 in respect of Facility A, and U.S.$1,000,000 in
respect of Facility B and U.S. $1,000,000 in respect of Facility C) of an Available
Facility. Any cancellation under this clause 17.3 shall reduce the Commitments of the
Lenders rateably under that Facility.
	 
	11.4	 	Voluntary prepayment of Facility A Loans

	 	(a)	 	The Borrower to which a Facility A Loan has been made may, if it gives the
Agent not less than five Business Days’ (or such shorter period as the Majority Lenders
may agree) prior notice, prepay the whole or any part of any Facility A Loan (but, if
in part, being an amount that reduces the Base Currency Amount of the Facility A Loan
by a minimum amount of U.S.$5,000,000).

43

 

	 	(b)	 	A Facility A Loan may only be prepaid after the last day of the Availability
Period (or, if earlier, the day on which the Available Facility under Facility A is
zero).
	 
	 	(c)	 	Any prepayment under this clause 17.4 shall satisfy the obligations under
clause 16.1 (Repayment of Facility A Loans) in inverse chronological order.

	11.5	 	Mandatory prepayment following a Permitted Disposal

	 	(a)	 	Sequa shall ensure that the proceeds of a Permitted Disposal (after deducting
the reasonable third party costs incurred in that disposal and any Tax payable in
respect of that Disposal) are applied in prepayment of Facility A Loans.
	 
	 	(b)	 	Any prepayment made under clause 11.5(a) shall reduce pro rata the repayment
obligations under clause 16.1.

	11.6	 	Voluntary prepayment of Facility C Utilisations
	 
	 	 	The Borrower to which a Facility C Utilisation has been made may, if it gives the Agent not
less than five Business Days’ (or such shorter period as the Majority Lenders may agree)
prior notice, prepay the whole or any part of a Facility C Utilisation (but if in part,
being an amount that reduces the Base Currency Amount of the Facility C Utilisation by a
minimum amount of U.S. $1,000,000).
	 
	11.7	 	Right of repayment and cancellation in relation to a single Lender or Fronting Bank

	 	(a)	 	If:

	 	(i)	 	any sum payable to any Lender or Fronting Bank by an Obligor is
required to be increased under clause 22.2(c) (Tax gross-up); or
	 
	 	(ii)	 	any Lender or Fronting Bank claims indemnification from a Unit
Parent under clause 22.3 (Tax indemnity) or clause 23 (Increased Costs),

	 	 	the Obligors’ Agent may, whilst the circumstance giving rise to the requirement or
indemnification continues:

	 	(iii)	 	   

	 	(A)	 	(if the circumstance relates to a Lender)
arrange for the transfer of the whole (but not part only) of that
Lender’s Commitment and participations in the Utilisations and its
Ancillary Commitment (if any) and Ancillary Outstandings under its
Ancillary Facility to a new or existing Lender willing to accept that
transfer and acceptable to the Obligors’ Agent and the remaining
Lenders; or
	 
	 	(B)	 	(if the circumstance relates to a Fronting
Bank) arrange for the cancellation of its appointment as Fronting Bank
and the appointment of a new Fronting Bank acceptable to the Obligors’
Agent and the Lenders and the transfer of any contingent liability of
that Fronting Bank to the new Fronting Bank; or

	 	(iv)	 	   

	 	(A)	 	(if the circumstance relates to a Lender) give
the Agent notice of cancellation of the Commitment of that Lender and
its intention to

44

 

	 	 	 	procure the repayment of that Lender’s participation in the
Utilisations and utilisations of any Ancillary Facility granted by
that Lender, whereupon the Commitment of that Lender and its
Ancillary Commitment (if any) shall immediately be reduced to zero;
or
	 
	 	(B)	 	(if the circumstance relates to a Fronting
Bank) give the Agent notice of cancellation of its appointment as
Fronting Bank and its intention to procure either the reduction of that
Fronting Bank’s contingent liability under any Letter of Credit to zero
or the provision of full cash cover in respect of the Fronting Bank’s
maximum contingent liability under each outstanding Letter of Credit.

	 	 	 	On the last day of each Interest Period which ends after the Obligors’ Agent
has given notice under this paragraph (iv) (or, if earlier, the date
specified by the Obligors’ Agent in that notice), each Borrower to which a
Utilisation or utilisation of an Ancillary Facility is outstanding shall
repay that Lender’s participation in that Utilisation or utilisation of an
Ancillary Facility granted by that Lender or, as the case may be, provide
full cash cover in respect of any Letter of Credit issued by that Fronting
Bank or in respect of any Letter of Credit issued under that Ancillary
Facility.

	11.8	 	Replacement of a Non-Consenting Lender

	 	(a)	 	In this clause 17.8 Non-Consenting Lender means any Lender which does not agree
to a consent, waiver or amendment if:

	 	(i)	 	the Obligors’ Agent or the Agent has requested a consent under
or waiver or amendment of any provision of any Finance Document;
	 
	 	(ii)	 	that consent, waiver or amendment requires the agreement of all
the Lenders; and
	 
	 	(iii)	 	the Super Majority Lenders have agreed to that consent, waiver
or amendment.

	 	(b)	 	If any Lender becomes a Non-Consenting Lender the Obligors’ Agent or the Super
Majority Lenders may, if it gives or, as the case may be, they give the Agent and that
Lender not less than 5 days prior notice, arrange for the transfer of the whole (but
not part only) of that Lender’s Commitment and participations in the Utilisations to a
new or existing Lender willing to accept that transfer and acceptable to the Obligors’
Agent and the remaining Lenders.

	11.9	 	Replacement of a Lender

	 	(a)	 	The replacement of a Lender pursuant to clause 17.7 (Right of repayment and
cancellation in relation to a single Lender or Fronting Bank) or clause 17.8
(Replacement of a Non-Consenting Lender) shall be subject to the following conditions:

	 	(i)	 	no Finance Party shall have any obligation to find a
replacement Lender;
	 
	 	(ii)	 	any replacement of a Non-Consenting Lender must take place no
later than 180 days after the earlier of (A) the date the Non-Consenting Lender
notified the Agent of its refusal to agree to the relevant consent, waiver or

45

 

	 	 	 	amendment and (B) the deadline (being not less than 15 Business Days after
the Lender received the request for the relevant consent, waiver or
amendment) by which the Non-Consenting Lender failed to reply to that
request;
	 
	 	(iii)	 	any Lender replaced pursuant to clause 17.7 (Right of
repayment and cancellation in relation to a single Lender or Fronting Bank) or
clause 17.8 (Replacement of a Non-Consenting Lender) shall not be required to
refund, or to pay or surrender to any other Lender, any of the fees or other
amounts received by that Lender under any Finance Document; and
	 
	 	(iv)	 	any replacement pursuant to clause 17.7 (Right of repayment and
cancellation in relation to a single Lender or Fronting Bank) or clause 17.8
(Replacement of a Non-Consenting Lender) of a Lender which is the Agent shall
not affect its role as the Agent.

	11.10	 	Mandatory cancellation
	 
	 	 	If the first Utilisation Date has not occurred on or before 29 December 2005, this Agreement
and all other Finance Documents (other than the commitment letter dated on or about the date
of this Agreement between the Arranger, the Obligors’ Agent and the Borrowers) will be
immediately and automatically terminated.
	 
	11.11	 	Restrictions

	 	(a)	 	Any notice of cancellation or prepayment given by any Party under this clause
17 shall be irrevocable and, unless a contrary indication appears in this Agreement,
shall specify the date or dates upon which the relevant cancellation or prepayment is
to be made and the amount of that cancellation or prepayment.
	 
	 	(b)	 	Any prepayment under this Agreement shall be made together with accrued
interest on the amount prepaid and, subject to any Break Costs, without premium or
penalty.
	 
	 	(c)	 	No Borrower may reborrow any part of Facility A which is prepaid.
	 
	 	(d)	 	Unless a contrary indication appears in this Agreement, any part of Facility C
which is prepaid may be reborrowed in accordance with the terms of this Agreement.
	 
	 	(e)	 	The Borrowers shall not repay or prepay all or any part of the Utilisations or
cancel all or any part of the Commitments except at the times and in the manner
expressly provided for in this Agreement.
	 
	 	(f)	 	No amount of the Total Commitments cancelled under this Agreement may be
subsequently reinstated.
	 
	 	(g)	 	If the Agent receives a notice under this clause 17, it shall promptly forward
a copy of that notice to either the Obligors’ Agent or the affected Lender, as
appropriate.

	12	 	Interest
	 
	12.1	 	Calculation of interest
	 
	 	 	The rate of interest on each Loan for each Interest Period is the percentage rate per annum
which is the aggregate of the applicable:

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	 	(a)	 	Margin;
	 
	 	(b)	 	LIBOR; and
	 
	 	(c)	 	Mandatory Cost, if any.

	12.2	 	Payment of interest
	 
	 	 	The Borrower to which a Loan has been made shall pay accrued interest on that Loan on the
last day of each Interest Period (and, if the Interest Period is longer than six Months, on
the dates falling at six-monthly intervals after the first day of the Interest Period).
	 
	12.3	 	Default interest

	 	(a)	 	If an Obligor fails to pay any amount payable by it under a Finance Document on
its due date, interest shall accrue on the overdue amount from the due date up to the
date of actual payment (both before and after judgment) at a rate which, subject to
paragraph (b) below, is the sum of 1 per cent and the rate which would have been
payable if the overdue amount had, during the period of non-payment, constituted a Loan
in the currency of the overdue amount for successive Interest Periods, each of a
duration selected by the Agent (acting reasonably). Any interest accruing under this
clause 18.3 shall be immediately payable by the Obligor on demand by the Agent.
	 
	 	(b)	 	If any overdue amount consists of all or part of a Loan which became due on a
day which was not the last day of an Interest Period relating to that Loan:

	 	(i)	 	the first Interest Period for that overdue amount shall have a
duration equal to the unexpired portion of the current Interest Period relating
to that Loan; and
	 
	 	(ii)	 	the rate of interest applying to the overdue amount during that
first Interest Period shall be the sum of 1 per cent and the rate which would
have applied if the overdue amount had not become due.

	 	(c)	 	Default interest (if unpaid) arising on an overdue amount will be compounded
with the overdue amount at the end of each Interest Period applicable to that overdue
amount but will remain immediately due and payable provided that, in respect of
Chromalloy (Thailand) Ltd. and Chromalloy Holding (Thailand) Ltd., such unpaid interest
(which will remain immediately due and payable) shall only be compounded with the
overdue amount from the first anniversary of the date on which such unpaid interest
fell due.

	12.4	 	Notification of rates of interest
	 
	 	 	The Agent shall promptly notify the Lenders and the relevant Borrower and the Obligors’
Agent of the determination of a rate of interest under this Agreement.
	 
	12.5	 	Adjustment of Margin – Facility A

	 	(a)	 	Subject to this clause 18.5, the Margin applicable to each Utilisation under
Facility A, shall be the rate per annum specified in the definition of Margin set out
in clause 7.1 (Definitions) adjusted, in respect of Facility A, by reference to the
ratio of Net Borrowings to EBITDA as shown in the then most recent Compliance
Certificate (and the financial statements with which it is required by this Agreement
to be delivered) received by the Agent, to equal the rate per annum specified opposite
the relevant range set out in the following table in which the ratio of Net Borrowings
to EBITDA falls:

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	Ratio	 	Margin (%p.a.)
	Equal to or higher than 2.5
	 	 	1.75	 
	Equal to or higher than 1.5 but lower than 2.5
	 	 	1.50	 
	Lower than 1.5
	 	 	1.25	 

	 	(b)	 	No adjustment shall be made to the Margin applicable to Facility A under clause
18.5(a) above until the first Business Day on or after the first anniversary of the
date of this Agreement.
	 
	 	(c)	 	Any adjustment to the Margin applicable to Facility A under clause 18.5(a)
above shall take effect on the date of receipt by the Agent of a Compliance Certificate
(and the financial statements with which it is required by this Agreement to be
delivered) in accordance with clause 29.3 (Compliance Certificate) or, in the case of
any adjustment following the remedy or waiver of an Event of Default, the date such
Event of Default is remedied or waived.
	 
	 	(d)	 	If the Margin applicable to Facility A for a Utilisation is reduced for any
period under this clause 18.5 but the annual Combined Group Accounts as reviewed by the
auditors (and the Compliance Certificate with which they are required by this Agreement
to be delivered) subsequently received by the Agent do not confirm the basis for that
reduction, that reduction shall be reversed with retrospective effect. In that event
the Margin applicable to Facility A for that Utilisation shall be the rate per annum
specified opposite the relevant range set out in the table above and the revised ratio
of Net Borrowings to EBITDA calculated using the figures in that Compliance
Certificate. Each Borrower shall promptly pay to the Agent any amount necessary to put
the Agent and Lenders in the position they would have been in had the appropriate rate
of the Margin applicable to Facility A applied during that period.
	 
	 	(e)	 	While an Event of Default is continuing, the Margin applicable to each Facility
A Loan shall revert to the rate specified in the definition of Margin in clause 7.1
(Definitions) but, if such Event of Default is remedied or waived, the Margin
applicable to each Facility A Loan, shall again be adjusted in accordance with clause
18.5(a) above.
	 
	 	(f)	 	If a Unit Parent fails to deliver a Compliance Certificate on its due date, the
Margin applicable to each Facility A Loan shall revert to the rate specified in the
definition of Margin in clause 7.1 (Definitions) from such due date until the actual
date of delivery of the Compliance Certificate.
	 
	 	(g)	 	Net Borrowings shall for the purposes of this clause 18.5 be calculated
excluding any Utilisations under this Agreement by way of Letter of Credit.

	12.6	 	Adjustment of Margin – Facility C

	 	(a)	 	Subject to this clause 18.6, the Margin applicable to each Utilisation (or each
part of a Utilisation) under Facility C for which cash cover is held by the relevant
Fronting Bank or Lender (as the case may be) shall be 0.25% per annum. The Margin
applicable to each Utilisation (or each part of a Utilisation) under Facility C for
which cash cover is not held shall remain 1.75 per cent per annum.

48

 

	 	(b)	 	Any adjustment to the Margin under paragraph (a) above shall take effect on the
last day of each calendar month, by reference to the aggregate cash cover held by each
Fronting Bank and each Lender on the last day of that month (and by reference to the
amount of cash cover held by each Lender on that date).
	 
	 	(c)	 	While an Event of Default is continuing, the Margin applicable to each
Utilisation of Facility C shall revert to the rate specified in the definition of
Margin in clause 7.1 (Definitions) but, if such Event of Default is remedied or waived,
the Margin applicable to each Utilisation of Facility C shall again be adjusted in
accordance with paragraph (a) above.

	13	 	Interest Periods
	 
	13.1	 	Selection of Interest Periods

	 	(a)	 	A Borrower (or the Obligors’ Agent on behalf of a Borrower) may select an
Interest Period for a Loan in the Utilisation Request for that Loan or (if the Loan has
already been borrowed) in a Selection Notice.
	 
	 	(b)	 	Each Selection Notice for a Facility A Loan is irrevocable and must be
delivered to the Agent by the Borrower (or the Obligors’ Agent on behalf of the
Borrower) to which that Facility A Loan was made not later than the Specified Time.
	 
	 	(c)	 	If a Borrower (or the Obligors’ Agent) fails to deliver a Selection Notice to
the Agent in accordance with paragraph (b) above, the relevant Interest Period will,
subject to clause 19.2 (Changes to Interest Periods), be one Month.
	 
	 	(d)	 	Subject to this clause 19, a Borrower (or the Obligors’ Agent) may select an
Interest Period of 1, 2, 3 or 6 Months or any other period agreed between the Obligors’
Agent and the Agent (acting on the instructions of all the Lenders). In addition a
Borrower (or the Obligors’ Agent on its behalf) may select an Interest Period of less
than one Month (in relation to Facility A), if necessary to ensure that there are
sufficient Facility A Loans (with an aggregate Base Currency Amount equal to or greater
than the Repayment Instalment) which have an Interest Period ending on a Facility A
Repayment Date for the Borrowers to make the Repayment Instalment due on that date.
	 
	 	(e)	 	An Interest Period for a Loan shall not extend beyond the Termination Date.
	 
	 	(f)	 	Each Interest Period for a Facility A Loan shall start on the Utilisation Date
or (if already made) on the last day of its preceding Interest Period.

	13.2	 	Changes to Interest Periods

	 	(a)	 	Prior to determining the interest rate for a Facility A Loan, the Agent may
shorten an Interest Period for any Facility A Loan to ensure there are sufficient
Facility A Loans with an Interest Period ending on a Facility A Repayment Date for the
Borrowers to make the Repayment Instalment due on that Facility A Repayment Date.
	 
	 	(b)	 	If the Agent makes any of the changes to an Interest Period referred to in this
clause 19.2, it shall promptly notify the Obligors’ Agent and the Lenders.

49

 

	13.3	 	Non-Business Days
	 
	 	 	If an Interest Period would otherwise end on a day which is not a Business Day, that
Interest Period will instead end on the next Business Day in that calendar month (if there
is one) or the preceding Business Day (if there is not).
	 
	13.4	 	Consolidation and division of Facility A Loans

	 	(a)	 	Subject to paragraph (b) below, if two or more Interest Periods:

	 	(i)	 	relate to Facility A Loans in the same currency;
	 
	 	(ii)	 	end on the same date; and
	 
	 	(iii)	 	are made to the same Borrower,

	 	 	 	those Facility A Loans will, unless that Borrower (or the Obligors’ Agent on its
behalf) specifies to the contrary in the Selection Notice for the next Interest
Period, be consolidated into, and treated as, a single Facility A Loan on the last
day of the Interest Period.
	 
	 	(b)	 	Subject to clause 10.4 (Maximum number of Utilisations) and clause 11.3
(Currency and amount), if a Borrower (or the Obligors’ Agent on its behalf) requests in
a Selection Notice that a Facility A Loan be divided into two or more Facility A Loans,
that Facility A Loan will, on the last day of its Interest Period, be so divided with
Base Currency Amounts specified in that Selection Notice, being an aggregate Base
Currency Amount equal to the Base Currency Amount of the Facility A Loan immediately
before its division.

	14	 	Changes to the calculation of interest
	 
	14.1	 	Absence of quotations
	 
	 	 	Subject to clause 20.2 (Market disruption), if LIBOR is to be determined by reference to the
Reference Banks but a Reference Bank does not supply a quotation by the Specified Time on
the Quotation Day, the applicable LIBOR shall be determined on the basis of the quotations
of the remaining Reference Banks.
	 
	14.2	 	Market disruption

	 	(a)	 	If a Market Disruption Event occurs in relation to a Loan for any Interest
Period, then the rate of interest on each Lender’s share of that Loan for the Interest
Period shall be the percentage rate per annum which is the sum of:

	 	(i)	 	the Margin;
	 
	 	(ii)	 	the rate notified to the Agent by that Lender as soon as
practicable and in any event before interest is due to be paid in respect of
that Interest Period, to be that which expresses as a percentage rate per annum
the cost to that Lender of funding its participation in that Loan from whatever
source it may reasonably select; and
	 
	 	(iii)	 	the Mandatory Cost, if any, applicable to that Lender’s
participation in the Loan.

50

 

	 	(b)	 	In this Agreement Market Disruption Event means:

	 	(i)	 	at or about noon on the Quotation Day for the relevant Interest
Period the Screen Rate is not available and none or only one of the Reference
Banks supplies a rate to the Agent to determine LIBOR for the relevant currency
and Interest Period; or
	 
	 	(ii)	 	before close of business in London on the Quotation Day for the
relevant Interest Period, the Agent receives notifications from a Lender or
Lenders (whose participations in a Loan exceed 35 per cent. of that Loan) that
the cost to it of obtaining matching deposits in the Relevant Interbank Market
would be in excess of LIBOR.

	14.3	 	Alternative basis of interest or funding

	 	(a)	 	If a Market Disruption Event occurs and the Agent or the Obligors’ Agent so
requires, the Agent and the Obligors’ Agent shall enter into negotiations (for a period
of not more than thirty days) with a view to agreeing a substitute basis for
determining the rate of interest.
	 
	 	(b)	 	Any alternative basis agreed pursuant to paragraph (a) above shall, with the
prior consent of all the Lenders and the Obligors’ Agent, be binding on all Parties.

	14.4	 	Break Costs

	 	(a)	 	Each Borrower shall, within three Business Days of demand by a Finance Party,
pay to that Finance Party its Break Costs attributable to all or any part of a Loan or
Unpaid Sum being paid by that Borrower on a day other than the last day of an Interest
Period for that Loan or Unpaid Sum.
	 
	 	(b)	 	Each Lender shall, as soon as reasonably practicable after a demand by the
Agent, provide a certificate confirming the amount of its Break Costs for any Interest
Period in which they accrue.

	15	 	Fees

	15.1	 	Commitment fee

	 	(a)	 	Each Borrower shall pay to the Agent (for the account of each Lender) a fee in
the Base Currency computed at the rate of:

	 	(i)	 	40 per cent. of the applicable Margin per annum on that
Lender’s Available Commitment under Facility A for the Availability Period
applicable to Facility A; and
	 
	 	(ii)	 	40 per cent. of the applicable Margin per annum on that
Lender’s Available Commitment under Facility C for the Availability Period
applicable to Facility C.

	 	(b)	 	The accrued commitment fee is payable on the last day of each Accounting
Quarter which ends during the relevant Availability Period (provided that the first
such instalment of accrued commitment fee shall be payable on 31 March 2006), on the
last day of the relevant Availability Period and, if cancelled in full, on the
cancelled amount of the relevant Lender’s Commitment at the time the cancellation is
effective.

51

 

	15.2	 	Upfront fee
	 
	 	 	Each Borrower shall pay to the Arranger an upfront fee in the amount and at the times agreed
in a Fee Letter.
	 
	15.3	 	Agency fee
	 
	 	 	Each Borrower shall pay to the Agent (for its own account) an agency fee in the amount and
at the times agreed in a Fee Letter.
	 
	15.4	 	Security agency fee
	 
	 	 	Each Borrower shall pay to the Security Agent (for its own account) a security agency fee in
the amount and at the times agreed in a Fee Letter.
	 
	15.5	 	Ancillary Facility Fees
	 
	 	 	Each Borrower shall pay to the relevant Ancillary Lender the fees, in the amounts and at the
times agreed in the relevant Ancillary Facility Document.
	 
	16	 	Tax gross-up and indemnities
	 
	16.1	 	Definitions

	 	(a)	 	In this Agreement:
	 
	 	 	 	Protected Party means a Finance Party which is or will be subject to any liability,
or required to make any payment, for or on account of Tax in relation to a sum
received or receivable (or any sum deemed for the purposes of Tax to be received or
receivable) under a Finance Document
	 
	 	 	 	Qualifying Lender means in relation to a Tax Deduction in respect of Tax imposed by
the United Kingdom, a Lender which is beneficially entitled to interest payable to
that Lender in respect of an advance under a Finance Document and is:

	 	(i)	 	a Lender:

	 	(A)	 	which is a bank (as defined for the purpose of
section 879 of ITA) making an advance under a Finance Document; or
	 
	 	(B)	 	in respect of an advance made under a Finance
Document by a person that was a bank (as defined for the purpose of
section 879 of ITA) at the time that advance was made,

	 	 	 	and which is within the charge to United Kingdom corporation tax as respects any
payments of interest made in respect of that advance; or

	 	(ii)	 	a Lender which is:

	 	(A)	 	a company resident in the United Kingdom for
United Kingdom tax purposes;
	 
	 	(B)	 	a partnership each member of which is:

	 	1)	 	a company so resident in the
United Kingdom; or

52

 

	 	2)	 	a company not so resident in
the United Kingdom which carries on a trade in the United
Kingdom through a permanent establishment and which brings into
account in computing its chargeable profits (for the purposes
of section 11(2) of the Taxes Act) the whole of any share of
interest payable in respect of that advance that falls to it by
reason of sections 114 and 115 of the Taxes Act; or

	 	(C)	 	a company not so resident in the United Kingdom
which carries on a trade in the United Kingdom through a permanent
establishment and which brings into account interest payable in respect
of that advance in computing the chargeable profits (for the purposes
of section 11(2) of the Taxes Act) of that company; or
	 
	 	(D)	 	otherwise satisfies one of the conditions
specified in sections 935 and 936 of ITA; or

	 	(iii)	 	a Treaty Lender with respect to the United Kingdom; or
	 
	 	(iv)	 	a building society (as defined for the purpose of section 477A
of the Taxes Act).

	 	 	 	Tax Confirmation means a confirmation by a Lender that the person beneficially
entitled to interest payable to that Lender in respect of an advance under a Finance
Document is either:

	 	(v)	 	a company resident in the United Kingdom for United Kingdom tax
purposes; or
	 
	 	(vi)	 	a partnership each member of which is:

	 	(A)	 	a company so resident in the United Kingdom; or
	 
	 	(B)	 	a company not so resident in the United Kingdom
which carries on a trade in the United Kingdom through a permanent
establishment and which brings into account in computing its chargeable
profits (for the purposes of section 11(2) of the Taxes Act) the whole
of any share of interest payable in respect of that advance that falls
to it by reason of sections 114 and 115 of the Taxes Act; or

	 	(vii)	 	a company not so resident in the United Kingdom which carries
on a trade in the United Kingdom through a permanent establishment and which
brings into account interest payable in respect of that advance in computing
the chargeable profits (for the purposes of section 11(2) of the Taxes Act) of
that company; or
	 
	 	(viii)	 	a Lender which otherwise satisfies one of the conditions specified in
sections 935 or 936 of ITA.

	 	 	 	Tax Credit means a credit against, relief or remission for, or repayment of any Tax.
	 
	 	 	 	Tax Deduction means a deduction or withholding for or on account of Tax from a
payment under a Finance Document.

53

 

	 	 	 	Tax Payment means either the increase in a payment made by an Obligor to a Finance
Party under clause 22.2 (Tax gross-up) or a payment under clause 22.3 (Tax
indemnity).
	 
	 	 	 	Treaty Lender means a Lender which:

	 	(ix)	 	is treated as a resident of a Treaty State for the purposes of the Treaty;
	 
	 	(x)	 	does not carry on a business in the United Kingdom through a
permanent establishment with which that Lender’s participation in the Loans is
effectively connected; and
	 
	 	(xi)	 	fulfils any conditions which must be fulfilled under the double
taxation agreement for residents of that Treaty State to obtain exemption from
United Kingdom taxation on interest.

	 	 	Treaty State means a jurisdiction having a double taxation agreement (a Treaty) with the
United Kingdom which makes provision for full exemption from tax imposed by the United
Kingdom on interest.
	 
	 	 	UK Non-Bank Lender means a Lender which gives a Tax Confirmation in the Transfer Certificate
which it executes on becoming a Party.

	 	(b)	 	Unless a contrary indication appears, in this clause 22 a reference to
determines or determined means a determination made in the absolute discretion of the
person making the determination.

	16.2	 	Tax gross-up

	 	(a)	 	Each Obligor shall make all payments to be made by it without any Tax
Deduction, unless a Tax Deduction is required by law.
	 
	 	(b)	 	Each Unit Parent shall promptly upon becoming aware that an Obligor in its Unit
must make a Tax Deduction (or that there is any change in the rate or the basis of a
Tax Deduction) notify the Agent accordingly. Similarly, a Lender shall notify the
Agent on becoming so aware in respect of a payment payable to that Lender. If the
Agent receives such notification from a Lender it shall notify the Obligors’ Agent and
that Obligor.
	 
	 	(c)	 	If a Tax Deduction is required by law to be made by an Obligor, the amount of
the payment due from that Obligor shall be increased to an amount which (after making
any Tax Deduction) leaves an amount equal to the payment which would have been due if
no Tax Deduction had been required.
	 
	 	(d)	 	An Obligor is not required to make an increased payment to a Lender under
paragraph (c) above for a Tax Deduction in respect of tax imposed by the United Kingdom
on a payment of interest on a Loan, if on the date on which the payment falls due:

	 	(i)	 	the payment could have been made to the relevant Lender without
a Tax Deduction if it was a Qualifying Lender, but on that date that Lender is
not or has ceased to be a Qualifying Lender other than as a result of any
change after the date it became a Lender under this Agreement in (or in the
interpretation, administration or application of) any law or Treaty, or any
published practice or concession of any relevant taxing authority; or

54

 

	 	(ii)	 	   

	 	(A)	 	the relevant Lender is a Qualifying Lender
solely under sub-paragraph (ii) of the definition of Qualifying Lender;
	 
	 	(B)	 	HM Revenue & Customs has given (and not
revoked) a direction (a Direction) under section 931 of ITA (as that
provision has effect on the date on which the relevant Lender became a
Party) which relates to that payment and that Lender has received from
that Obligor or the Obligors’ Agent a certified copy of that Direction;
and
	 
	 	(C)	 	the payment could have been made to the Lender
without any Tax Deduction in the absence of that Direction; or

	 	(iii)	 	the relevant Lender is a Qualifying Lender solely under
sub-paragraph (ii) of the definition of Qualifying Lender and it has not, other
than by reason of any change after the date of this Agreement in (or in the
interpretation, administration or application of) any law or any published
practice or concession of any relevant taxing authority, given a Tax
Confirmation to the Obligors’ Agent; or
	 
	 	(iv)	 	the relevant Lender is a Treaty Lender and the Obligor making
the payment is able to demonstrate that the payment could have been made to the
Lender without the Tax Deduction had that Lender complied with its obligations
under clause 22.2(g) below.

	 	(e)	 	If an Obligor is required to make a Tax Deduction, that Obligor shall make that
Tax Deduction and any payment required in connection with that Tax Deduction within the
time allowed and in the minimum amount required by law.
	 
	 	(f)	 	Within thirty days of making either a Tax Deduction or any payment required in
connection with that Tax Deduction, the Obligor making that Tax Deduction shall deliver
to the Agent for the Finance Party entitled to the payment evidence reasonably
satisfactory to that Finance Party that the Tax Deduction has been made or (as
applicable) any appropriate payment paid to the relevant taxing authority.
	 
	 	(g)	 	A Treaty Lender and each Obligor which makes a payment to which that Treaty
Lender is entitled shall co-operate in completing any procedural formalities necessary
for that Obligor to obtain authorisation to make that payment without a Tax Deduction.
	 
	 	(h)	 	A UK Non-Bank Lender shall promptly notify the Obligors’ Agent and the Agent if
there is any change in the position from that set out in the Tax Confirmation.

	16.3	 	Tax indemnity

	 	(a)	 	Each Unit Parent shall (or shall procure that an Obligor in its Unit will)
(within three Business Days of demand by the Agent) pay to a Protected Party an amount
equal to the loss, liability or cost which that Protected Party determines will be or
has been (directly or indirectly) suffered for or on account of Tax by that Protected
Party in respect of a Finance Document.
	 
	 	(b)	 	Paragraph (a) above shall not apply:

	 	(i)	 	with respect to any Tax assessed on a Finance Party:

55

 

	 	(A)	 	under the law of the jurisdiction in which that
Finance Party is incorporated or, if different, the jurisdiction (or
jurisdictions) in which that Finance Party is treated as resident for
tax purposes; or
	 
	 	(B)	 	under the law of the jurisdiction in which that
Finance Party’s Facility Office is located in respect of amounts
received or receivable in that jurisdiction,

	 	 	 	if that Tax is imposed on or calculated by reference to the net income received or
receivable (but not any sum deemed to be received or receivable) by that Finance
Party; or

	 	(ii)	 	to the extent a loss, liability or cost:

	 	(A)	 	is compensated for by an increased payment
under clause 22.2 (Tax gross-up); or
	 
	 	(B)	 	would have been compensated for by an increased
payment under clause 22.2 (Tax gross-up) but was not so compensated
solely because one of the exclusions in clause 22.2(d) (Tax gross-up)
applied.

	 	(c)	 	A Protected Party making, or intending to make, a claim under clause 22.3(a)
above shall promptly notify the Agent of the event which will give, or has given, rise
to the claim, following which the Agent shall notify the Obligors’ Agent.
	 
	 	(d)	 	A Protected Party shall, on receiving a payment from an Obligor under this
clause 22.3, notify the Agent.

	16.4	 	Tax Credit
	 
	 	 	If an Obligor makes a Tax Payment and the relevant Finance Party determines that:

	 	(a)	 	a Tax Credit is attributable either to an increased payment of which that Tax
Payment forms part, or to that Tax Payment; and
	 
	 	(b)	 	that Finance Party has obtained, utilised and retained that Tax Credit,

	 	 	the Finance Party shall pay an amount to the Obligor which that Finance Party determines
will leave it (after that payment) in the same after-Tax position as it would have been in
had the Tax Payment not been required to be made by the Obligor.
	 
	16.5	 	Stamp taxes
	 
	 	 	Each Unit Parent shall (or shall procure that an Obligor in its Unit will) pay and, within
three Business Days of demand, indemnify each Finance Party against any cost, loss or
liability that Finance Party incurs in relation to all stamp duty, stamp duty land tax,
registration and other similar Taxes payable in respect of any Finance Document.
	 
	16.6	 	Value added tax

	 	(a)	 	All amounts set out, or expressed to be payable under a Finance Document by any
Party to a Finance Party which (in whole or in part) constitute the consideration for
VAT purposes shall be deemed to be exclusive of any VAT which is chargeable on such
supply, and accordingly, subject to clause 22.6(c) below, if VAT is chargeable

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	 		 	on any supply made by any Finance Party to any Party under a Finance Document, that
Party shall pay to the Finance Party (in addition to and at the same time as paying
the consideration) an amount equal to the amount of the VAT (and such Finance Party
shall promptly provide an appropriate VAT invoice to such Party).
	 
	 	(b)	 	If VAT is chargeable on any supply made by any Finance Party (the Supplier) to
any other Finance Party (the Recipient) under a Finance Document, and any Party (the
Relevant Party) is required by the terms of any Finance Document to pay an amount equal
to the consideration for such supply to the Supplier (rather than being required to
reimburse the Recipient in respect of that consideration), such Party shall also pay to
the Supplier (in addition to and at the same time as paying such amount) an amount
equal to the amount of such VAT. The Recipient will promptly pay to the Relevant Party
an amount equal to any credit or repayment from the relevant tax authority which it
reasonably determines relates to the VAT chargeable on that supply.
	 
	 	(c)	 	Where a Finance Document requires any Party to reimburse a Finance Party for
any costs or expenses, that Party shall also at the same time pay and indemnify the
Finance Party against all VAT incurred by the Finance Party in respect of the costs or
expenses.

	17	 	Increased Costs
	 
	17.1	 	Increased Costs

	 	(a)	 	Subject to clause 23.3 (Exceptions) each Unit Parent shall (or shall procure
that an Obligor in its Unit will), within three Business Days of a demand by the Agent,
pay for the account of a Finance Party the amount of any Increased Costs incurred by
that Finance Party or any of its Affiliates as a result of (i) the introduction of or
any change in (or in the interpretation, administration or application of) any law or
regulation or (ii) compliance with any law or regulation made after the date of this
Agreement.
	 
	 	(b)	 	In this Agreement Increased Costs means:

	 	(i)	 	a reduction in the rate of return from the Facility or on a
Finance Party’s (or its Affiliate’s) overall capital;
	 
	 	(ii)	 	an additional or increased cost; or
	 
	 	(iii)	 	a reduction of any amount due and payable under any Finance
Document,

	 	 	 	which is incurred or suffered by a Finance Party or any of its Affiliates to the
extent that it is attributable to that Finance Party having entered into its
Commitment or funding or performing its obligations under any Finance Document.

	17.2	 	Increased Cost claims

	 	(a)	 	A Finance Party intending to make a claim pursuant to clause 23.1 (Increased
Costs) shall notify the Agent of the event giving rise to the claim, following which
the Agent shall promptly notify the Obligors’ Agent.
	 
	 	(b)	 	Each Finance Party shall, as soon as practicable after a demand by the Agent,
provide a certificate confirming the amount of its Increased Costs.

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	17.3	 	Exceptions

	 	(a)	 	Clause 23.1 (Increased Costs) does not apply to the extent any Increased Cost
is:

	 	(i)	 	attributable to a Tax Deduction required by law to be made by
an Obligor;
	 
	 	(ii)	 	compensated for by clause 22.3 (Tax indemnity) (or would have
been compensated for under clause 22.3 (Tax indemnity) but was not so
compensated solely because any of the exclusions in clause 22.3(b) (Tax
indemnity) applied);
	 
	 	(iii)	 	compensated for by the payment of the Mandatory Cost; or
	 
	 	(iv)	 	attributable to the wilful breach by the relevant Finance Party
or its Affiliates of any law or regulation.

	 	(b)	 	In this clause 23.3, a reference to a Tax Deduction has the same meaning given
to the term in clause 22.1 (Definitions).

	18	 	Other indemnities
	 
	18.1	 	Currency indemnity

	 	(a)	 	If any sum due from an Obligor under the Finance Documents (a Sum), or any
order, judgment or award given or made in relation to a Sum, has to be converted from
the currency (the First Currency) in which that Sum is payable into another currency
(the Second Currency) for the purpose of:

	 	(i)	 	making or filing a claim or proof against that Obligor; or
	 
	 	(ii)	 	obtaining or enforcing an order, judgment or award in relation
to any litigation or arbitration proceedings,

	 	 	 	that Obligor shall as an independent obligation, within three Business Days of
demand, indemnify each Finance Party to whom that Sum is due against any cost, loss
or liability arising out of or as a result of the conversion including any
discrepancy between (A) the rate of exchange used to convert that Sum from the First
Currency into the Second Currency and (B) the rate or rates of exchange available to
that person at the time of its receipt of that Sum.
	 
	 	(b)	 	Each Obligor waives any right it may have in any jurisdiction to pay any amount
under the Finance Documents in a currency or currency unit other than that in which it
is expressed to be payable.

	18.2	 	Other indemnities

Each Unit Parent shall (or shall procure that an Obligor in its Unit will), within three
Business Days of demand, indemnify each Finance Party against any cost, loss or liability
(other than any consequential damages or loss of profit) incurred by that Finance Party as a
result of:

	 	(a)	 	the occurrence of any Event of Default;
	 
	 	(b)	 	a failure by an Obligor to pay any amount due under a Finance Document on its
due date, including without limitation, any cost, loss or liability arising as a result
of clause 37 (Sharing among the Finance Parties);

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	 	(c)	 	funding, or making arrangements to fund, its participation in a Utilisation
requested by a Borrower in a Utilisation Request but not made by reason of the
operation of any one or more of the provisions of this Agreement (other than by reason
of default or negligence by that Finance Party alone); or
	 
	 	(d)	 	a Utilisation (or part of a Utilisation) not being prepaid in accordance with a
notice of prepayment given by a Borrower or the Obligors’ Agent.

	18.3	 	Indemnity to the Agent and the Security Agent

Each Unit Parent shall (or shall procure that an Obligor in its Unit will) promptly
indemnify the Agent and the Security Agent against any cost, loss or liability (other than
any consequential damages or loss of profit) incurred by the Agent (acting reasonably) as a
result of:

	 	(a)	 	investigating any event which it reasonably believes is a Default;
	 
	 	(b)	 	entering into or performing any foreign exchange contract for the purposes of
clause 14.3(b) (Change of currency); or
	 
	 	(c)	 	acting or relying on any notice, request or instruction which it reasonably
believes to be genuine, correct and appropriately authorised.

	19	 	Mitigation by the Lenders
	 
	19.1	 	Mitigation

	 	(a)	 	Each Finance Party shall, in consultation with the Obligors’ Agent, take all
reasonable steps to mitigate any circumstances which arise and which would result in
any amount becoming payable under or pursuant to, or cancelled pursuant to, any of
clause 17.1 (Illegality), clause 22 (Tax gross-up and indemnities), clause 23
(Increased Costs) or paragraph 3 of schedule 4 (Mandatory Cost formulae) including (but
not limited to) transferring its rights and obligations under the Finance Documents to
another Affiliate or Facility Office.
	 
	 	(b)	 	Clause 25.1(a) above does not in any way limit the obligations of any Obligor
under the Finance Documents.

	19.2	 	Limitation of liability

	 	(a)	 	Each Unit Parent shall or shall procure that an Obligor in its Unit will
indemnify each Finance Party for all costs and expenses reasonably incurred by that
Finance Party as a result of steps taken by it under clause 25.1 (Mitigation).
	 
	 	(b)	 	A Finance Party is not obliged to take any steps under clause 25.1 (Mitigation)
if, in the opinion of that Finance Party (acting reasonably), to do so might be
prejudicial to it.

	20	 	Costs and expenses
	 
	20.1	 	Transaction expenses

Each Unit Parent shall or shall procure that an Obligor in its Unit will promptly on demand
pay the Agent, the Security Agent and the Arranger the amount of all costs and expenses
(including legal fees) reasonably incurred by any of them in connection with the
negotiation, preparation, printing, execution and syndication of:

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	 	(a)	 	this Agreement and any other documents referred to in this Agreement; and
	 
	 	(b)	 	any other Finance Documents executed after the date of this Agreement.

	20.2	 	Amendment costs

If (a) an Obligor requests an amendment, waiver or consent or (b) an amendment is required
pursuant to clause 38.9 (Change of currency), each Unit Parent shall, within three Business
Days of demand, reimburse the Agent and the Security Agent for the amount of all costs and
expenses (including legal fees) reasonably incurred by the Agent or the Security Agent in
responding to, evaluating, negotiating or complying with that request or requirement.

	20.3	 	Enforcement costs

Each Unit Parent shall or shall procure that an Obligor in its Unit will, within three
Business Days of demand, pay to each Finance Party the amount of all costs and expenses
(including legal fees) incurred by that Finance Party in connection with the enforcement of,
or the preservation of any rights under, any Finance Document.

	20.4	 	Security Agent expenses

	 	(a)	 	Subject to clause 26.4(b) below, each Unit Parent shall or shall procure that
an Obligor in its Unit will promptly on demand pay the Security Agent the amount of all
costs and expenses (including legal fees) reasonably incurred by the Security Agent in
connection with the administration or release of any Security created pursuant to any
Security Document (including without limitation any costs and expenses reasonably
incurred by the Security Agent in respect of any Security or Security Document, in
each case governed by Thai law, in connection with an assignment or a transfer by a
Finance Party of any of its rights or obligations under the Finance Documents).
	 
	 	(b)	 	No Unit Parent shall be required to (nor shall any Unit Parent be required to
procure that an Obligor in its Unit will) pay the Security Agent any amount in respect
of costs and expenses incurred by the Security Agent in respect of any Security or
Security Document, in each case governed by Thai law, in connection with any assignment
or transfer by a Finance Party of any of its rights or obligations under the Finance
Documents in any calendar year where there have been at least five previous such
assignments or transfers in such year. In that case, those costs and expenses will be
for the account of the relevant New Lender.

	21	 	Guarantee and indemnity
	 
	21.1	 	Guarantee and Indemnity

Subject to any limitations set out in this clause 27 or in any Accession Letter by which
such Guarantor becomes a party hereto, each Guarantor irrevocably and unconditionally
jointly and severally:

	 	(a)	 	guarantees to each Finance Party punctual performance by each Borrower of all
that Borrower’s obligations under the Finance Documents;
	 
	 	(b)	 	undertakes with each Finance Party that whenever an Obligor does not pay any
amount when due under or in connection with any Finance Document, that Guarantor shall
immediately on demand pay that amount as if it was the principal obligor; and

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	 	(c)	 	indemnifies each Finance Party immediately on demand against any cost, loss or
liability suffered by that Finance Party if any obligation guaranteed by it is or
becomes unenforceable, invalid or illegal. The amount of the cost, loss or liability
shall be equal to the amount which that Finance Party would otherwise have been
entitled to recover.

	21.2	 	Continuing guarantee

This guarantee is a continuing guarantee and will extend to the ultimate balance of sums
payable by any Obligor under the Finance Documents, regardless of any intermediate payment
or discharge in whole or in part.

	21.3	 	Reinstatement

If any payment by an Obligor or any discharge given by a Finance Party (whether in respect
of the obligations of any Obligor or any Security for those obligations or otherwise) is
avoided or reduced as a result of insolvency or any similar event:

	 	(a)	 	the liability of each Obligor shall continue as if the payment, discharge,
avoidance or reduction had not occurred; and
	 
	 	(b)	 	each Finance Party shall be entitled to recover the value or amount of that
Security or payment from each Obligor, as if the payment, discharge, avoidance or
reduction had not occurred.

	21.4	 	Waiver of defences

The obligations of each Guarantor under this clause 27 will not be affected by an act,
omission, matter or thing which, but for this clause, would reduce, release or prejudice any
of its obligations under this clause 27 (without limitation and whether or not known to it
or any Finance Party) including:

	 	(a)	 	any time, waiver or consent granted to, or composition with, any Obligor or
other person;
	 
	 	(b)	 	the release of any other Obligor or any other person under the terms of any
composition or arrangement with any creditor of any member of the Group or any other
person;
	 
	 	(c)	 	the taking, variation, compromise, exchange, renewal or release of, or refusal
or neglect to perfect, take up or enforce, any rights against, or Security over assets
of, any Obligor or other person or any non-presentation or non-observance of any
formality or other requirement in respect of any instrument or any failure to realise
the full value of any Security;
	 
	 	(d)	 	any incapacity or lack of power, authority or legal personality of or
dissolution or change in the members or status of an Obligor or any other person;
	 
	 	(e)	 	any amendment, novation, supplement, restatement (however fundamental) or
replacement of a Finance Document or any other document or security, including any
increase in, extension of or change to any facility made available under that Finance
Document or other document;
	 
	 	(f)	 	any unenforceability, illegality or invalidity of any obligation of any person
under any Finance Document or any other document or Security; or

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	 	(g)	 	any insolvency or similar proceedings.

Each Guarantor incorporated in Thailand further waives any right it has to make payment to
each Finance Party under this Agreement in a currency other than those required under the
relevant Finance Documents.

	21.5	 	Immediate recourse

Each Guarantor waives any right it may have of first requiring any Finance Party (or any
trustee or agent on its behalf) to proceed against or enforce any other rights or Security
or claim payment from any person before claiming from that Guarantor under this clause 27.
This waiver applies irrespective of any law or any provision of a Finance Document to the
contrary.

	21.6	 	Appropriations

Until all amounts which may be or become payable by the Obligors under or in connection with
the Finance Documents have been irrevocably paid in full, each Finance Party (or any trustee
or agent on its behalf) may:

	 	(a)	 	refrain from applying or enforcing any other moneys, Security or rights held or
received by that Finance Party (or any trustee or agent on its behalf) in respect of
those amounts, or apply and enforce the same in such manner and order as it sees fit
(whether against those amounts or otherwise) and no Guarantor shall be entitled to the
benefit of the same; and
	 
	 	(b)	 	hold in an interest-bearing suspense account any moneys received from any
Guarantor or on account of any Guarantor’s liability under this clause 27.

	21.7	 	Deferral of Guarantors’ rights

Until all amounts which may be or become payable by the Obligors under or in connection with
the Finance Documents have been irrevocably paid in full and unless the Agent or, as the
case may be, the Security Agent otherwise directs, no Guarantor will exercise any rights
which it may have by reason of performance by it of its obligations under the Finance
Documents:

	 	(a)	 	to be indemnified by an Obligor;
	 
	 	(b)	 	to claim any contribution from any other guarantor of any Obligor’s obligations
under the Finance Documents; and/or
	 
	 	(c)	 	to take the benefit (in whole or in part and whether by way of subrogation or
otherwise) of any rights of the Finance Parties under the Finance Documents or of any
other guarantee or Security taken pursuant to, or in connection with, the Finance
Documents by any Finance Party.

	21.8	 	Release of Guarantors’ right of contribution

If any Guarantor (a Retiring Guarantor) ceases to be a Guarantor in accordance with the
terms of the Finance Documents for the purpose of any sale or other disposal of that
Retiring Guarantor then on the date such Retiring Guarantor ceases to be a Guarantor:

	 	(a)	 	that Retiring Guarantor is released by each other Guarantor from any liability
(whether past, present or future and whether actual or contingent) to make a

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	 	 	 	contribution to any other Guarantor arising by reason of the performance by any
other Guarantor of its obligations under the Finance Documents; and
	 
	 	(b)	 	each other Guarantor waives any rights it may have by reason of the performance
of its obligations under the Finance Documents to take the benefit (in whole or in part
and whether by way of subrogation or otherwise) of any rights of the Finance Parties
under any Finance Document or of any other Security taken pursuant to, or in connection
with, any Finance Document where such rights or Security are granted by or in relation
to the assets of the Retiring Guarantor.

	21.9	 	Additional Security

This guarantee is in addition to and is not in any way prejudiced by any other guarantee or
Security now or subsequently held by any Finance Party.

	21.10	 	Limitations

	 	(a)	 	The guarantee of any Dutch Guarantor shall be deemed to have been given only to
the extent that such guarantee does not violate the prohibition on financial assistance
contained in Sections 2:98c and 2:207c of the Dutch Civil Code (Burgerlijk Wetboek).
	 
	 	(b)	 	The guarantee of any Additional Guarantor is subject to any limitations
relating to that Additional Guarantor set out in any relevant Guarantor Accession
Letter.
	 
	 	(c)	 	The liability of Sequa under this clause 27 (Guarantee and indemnity) shall be
limited to $100,000,000.
	 
	 	(d)	 	The maximum aggregate liability of Warwick International Group Limited under
this clause 27 (Guarantee and indemnity) and under all the Finance Documents shall be
limited to £19,900,000.

	21.11	 	Sequa

	 	(a)	 	Sequa acknowledges that:

	 	(i)	 	it will receive valuable direct or indirect benefits as a
result of the transactions financed by the Finance Documents;
	 
	 	(ii)	 	those benefits will constitute reasonably equivalent value
and/or fair consideration for the purpose of any Fraudulent Transfer Law;
	 
	 	(iii)	 	each Finance Party has acted in good faith in connection with
the guarantee given by Sequa and the transactions contemplated by the Finance
Documents; and
	 
	 	(iv)	 	it has not incurred and does not intend to incur debts beyond
its ability to pay as they mature.

	 	(b)	 	Each Finance Party agrees that Sequa’s liability under this clause 27 is
limited to the extent (if any) necessary so that no obligation of, or payment by, Sequa
under this clause 27 is subject to avoidance or turnover under any Fraudulent Transfer
Law.
	 
	 	(c)	 	Sequa represents and warrants that, and shall ensure that at all times:

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	 	(i)	 	the aggregate value (calculated as the lesser of fair valuation
and present saleable value) of Sequa’s assets is greater than the aggregate
amount of its debts (including its obligations under the Finance Documents) and
any amount that will be required to pay the probable liabilities in respect of
those debts;
	 
	 	(ii)	 	its capital is not unreasonably small to carry on its business
as conducted or proposed to be conducted; and
	 
	 	(iii)	 	it has not made a transfer or incurred any obligation under
any Finance Document with the intent to hinder, delay or defraud any of its
present or future creditors.

	22	 	Representations

	 	(a)	 	Each Obligor other than Sequa makes the representations and warranties set out
in this clause 27.11 (other than in respect of Sequa as an Obligor) to each Finance
Party on the date of this Agreement.
	 
	 	(b)	 	Sequa makes the representations and warranties, in respect of itself, set out
in clauses 28.1 (Status), 28.2 (Binding obligations), 28.3 (Non-conflict with other
obligations), 28.4 (Power and authority), 28.5 (Validity and admissibility in
evidence), 28.6 (Governing law and enforcement), 28.8 (No filing or stamp taxes) and
28.26 (ERISA ).

	22.1	 	Status

	 	(a)	 	It and each of its Material Subsidiaries is a limited liability company or
corporation, duly incorporated and validly existing under the law of its jurisdiction
of incorporation.
	 
	 	(b)	 	It and each of its Material Subsidiaries has the power to own its assets and
carry on its business as it is being conducted.

	22.2	 	Binding obligations

Subject to:

	 	(a)	 	any applicable Reservations; or
	 
	 	(b)	 	in the case of any Security Document, any applicable Perfection Requirements,

the obligations expressed to be assumed by it in each Finance Document are legal, valid,
binding and enforceable.

	22.3	 	Non-conflict with other obligations

The entry into and performance by it of, and the transactions contemplated by, the Finance
Documents do not and will not conflict with:

	 	(a)	 	any law or regulation applicable to it;
	 
	 	(b)	 	its constitutional documents; or

64

 

	 	(c)	 	any agreement or instrument binding upon it or any of its Subsidiaries or any
of its or any of its Subsidiaries’ assets, to the extent that it could reasonably be
expected to have a Material Adverse Effect,

nor (except as provided in any Security Document or except in respect of any Security
permitted under clause 31.4 (Negative pledge)) result in the existence of, or oblige it or
any of its Subsidiaries to create, any Security over any of its or any of its Subsidiaries’
assets.

	22.4	 	Power and authority

It has the power to enter into, perform and deliver, and has taken all necessary action to
authorise its entry into, performance and delivery of, the Finance Documents to which it is
a party and the transactions contemplated by those Finance Documents.

	22.5	 	Validity and admissibility in evidence

All Authorisations required:

	 	(a)	 	to enable it lawfully to enter into, exercise its rights and comply with its
obligations in the Finance Documents to which it is a party;
	 
	 	(b)	 	to make the Finance Documents to which it is a party admissible in evidence in
its Relevant Jurisdictions, subject to any applicable Reservations; and
	 
	 	(c)	 	to enable it to create the Security purported to be created by it or any of its
Subsidiaries pursuant to any Security Document and, subject in each case to any
applicable Reservations, to ensure that such Security has the priority and ranking it
is expressed to have,

have been obtained or effected and are in full force and effect save for complying with any
applicable Perfection Requirements.

	22.6	 	Governing law and enforcement

Subject to any applicable Reservations or, in the case of any Security Document, any
applicable Perfection Requirements:

	 	(a)	 	the choice of law specified in each Finance Document as the governing law of
that Finance Document will be recognised and enforced in its Relevant Jurisdictions;
and
	 
	 	(b)	 	any judgment obtained in England in relation to a Finance Document (or in the
jurisdiction of the governing law of that Finance Document) will be recognised and
enforced in its Relevant Jurisdictions and, in relation to a Finance Document governed
by a law other than English law, in the jurisdiction of the governing law of that
Finance Document.

	22.7	 	Deduction of Tax

	 	(a)	 	No Borrower incorporated in England and Wales is required to make any deduction
for or on account of Tax from any payment it may make to a Qualifying Lender under any
Finance Document.
	 
	 	(b)	 	No Dutch Borrower is required to make any deduction for or on account of Tax
from any payment it may make under any Finance Document.

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	22.8	 	No filing or stamp taxes

Under the law of its Relevant Jurisdictions it is not necessary that the Finance Documents
be filed, recorded or enrolled with any court or other authority in that jurisdiction or
that any stamp, registration, notarial or similar taxes or fees be paid on or in relation to
the Finance Documents or the transactions contemplated by the Finance Documents save in each
case for complying with the applicable Perfection Requirements.

	22.9	 	No default

	 	(a)	 	No Event of Default is continuing or could reasonably be expected to result
from the making of any Utilisation.
	 
	 	(b)	 	No other event or circumstance is outstanding which constitutes a default under
any other agreement or instrument which is binding on it or any of its Subsidiaries or
to which its (or any of its Subsidiaries’) assets are subject which has or could
reasonably be expected to have a Material Adverse Effect.

	22.10	 	No misleading information

	 	(a)	 	Any factual information in the Information Package was true and accurate in all
material respects as at the date it was provided or as at the date (if any) at which it
is stated.
	 
	 	(b)	 	The financial projections contained in the Information Package have been
prepared on the basis of recent historical information and on the basis of reasonable
assumptions at the time of such preparation.
	 
	 	(c)	 	Any expressions of opinion or intention provided by or on behalf of any Obligor
in connection with any Finance Document, including any expressions of opinion or
intention in the Information Package, were made after due and careful consideration and
were considered at the time to be based on reasonable grounds.
	 
	 	(d)	 	Nothing has occurred or been omitted from the Information Package and no
information has been given or withheld that results in the Information Package being
untrue or misleading in any material respect.

	22.11	 	Financial statements and Business Plan

	 	(a)	 	Its Original Financial Statements:

	 	(i)	 	were prepared as Statutory Financial Statements in accordance
with generally accepted accounting principles, standards and practices in its
jurisdiction of incorporation consistently applied; and
	 
	 	(ii)	 	fairly represent its financial condition and operations as at
the end of and for the relevant financial year.

	 	(b)	 	There has been no material adverse change in the assets, business or combined
financial condition of the Group taken as a whole since the date to which the Original
Financial Statements were drawn up.
	 
	 	(c)	 	The Business Plan was prepared on a basis consistent with US GAAP and financial
reference periods of the Group consistently applied as at the date of this Agreement.

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	 	(d)	 	On the basis of information available as at the date of this Agreement
(including actual financial information for the period to and as at October 2005) it is
not aware of anything which would materially alter the financial position of the Group
for the period to, and as at, December 2005 from that shown in the Business Plan.

	22.12	 	No proceedings pending or threatened

No litigation, arbitration or administrative proceedings of or before any court, arbitral
body or agency (including any arising from or relating to any Environmental Law) which are
reasonably likely to be adversely determined and, if adversely determined, could reasonably
be expected to have a Material Adverse Effect have (to the best of its knowledge and belief)
been started or threatened against it or any of its Subsidiaries.

	22.13	 	Security

	 	(a)	 	Subject to any applicable Perfection Requirements or Reservations, each
Security Document creates (or, once entered into, will create) in favour of the
Security Agent for the benefit of the Finance Parties, the Security which it is
expressed to create fully perfected and with the ranking and priority it is expressed
to have.
	 
	 	(b)	 	The constitutional documents of any member of the Group do not (or will not, by
the time such Security is required to be created) restrict or inhibit in any manner any
transfer of any shares of any member of the Group which are expressed to be (or are
required by this Agreement to be or become) subject to any Security under any Security
Document, upon or following enforcement of that Security.

	22.14	 	Legal and beneficial ownership

It and each of its Material Subsidiaries is the absolute legal and beneficial owner of all
the material assets over which it purports to create Security pursuant to any Security
Document, free from any Security other than Security created pursuant to, or permitted by,
the Finance Documents.

	22.15	 	Assets

It and each of its Subsidiaries has good and marketable title to, or valid leases or
licences of, or is otherwise entitled to use (in each case, on arm’s length terms), all
material assets necessary for the conduct of its business as it is being, and is proposed to
be, conducted.

	22.16	 	Environmental Laws and Licences

It and each of its Subsidiaries has:

	 	(a)	 	complied with all Environmental Laws to which it may be subject;
	 
	 	(b)	 	obtained all Environmental Licences required in connection with its business;
and
	 
	 	(c)	 	complied with the terms of those Environmental Licences,

in each case where failure to do so could reasonably be expected to have a Material Adverse
Effect.

	22.17	 	Environmental releases

No:

67

 

	 	(a)	 	property currently or previously owned, leased, occupied or controlled by it or
any of its Subsidiaries (including any offsite waste management or disposal location
utilised by it or any of its Subsidiaries) is contaminated with any Hazardous
Substance; and
	 
	 	(b)	 	discharge, release, leaching, migration or escape of any Hazardous Substance
into the Environment has occurred or is occurring on, under or from that property,

in each case in circumstances where this could reasonably be expected to have a Material
Adverse Effect.

	22.18	 	No breach of law

It has not (and none of its Subsidiaries has) breached any law or regulation which breach
has, or could reasonably be expected to have, a Material Adverse Effect.

	22.19	 	No Financial Indebtedness, guarantees or Security

	 	(a)	 	No member of the Group has any Financial Indebtedness other than as permitted
by clause 31.16(b) (Financial Indebtedness).
	 
	 	(b)	 	No member of the Group has issued any guarantee other than a guarantee
permitted by clause 31.15(b) (Guarantees).
	 
	 	(c)	 	No Security exists over all or any of its (or any of its Subsidiaries’) assets
other than as permitted by clause 31.4 (Negative pledge).

	22.20	 	Shares

	 	(a)	 	The shares of any member of the Group which are expressed to be (or are
required by this Agreement to be or become) subject to any Security under any Security
Document are (or will be by the time such Security is required to be created) issued,
fully paid, non-assessable and freely transferable and constitute shares in the capital
of limited companies, and there are (or will be by the time such Security is required
to be created) no moneys or liabilities outstanding or payable in respect of any such
share.
	 
	 	(b)	 	No person has or is entitled to any conditional or unconditional option,
warrant or other right to call for the issue or allotment of, subscribe for, purchase
or otherwise acquire any share capital of any member of the Group (including any right
of pre-emption, conversion or exchange) whose shares are expressed to be the subject of
Security under any Security Document.
	 
	 	(c)	 	There are no agreements in force or corporate resolutions passed which require
or might require the present or future issue or allotment of any share capital of any
member of the Group (including any option or right of pre-emption, conversion or
exchange) whose shares are expressed to be the subject of Security under any Security
Document.
	 
	 	(d)	 	The shares of any member of the Group which are expressed to be (or are
required by this Agreement to be or become) subject to any Security under any Security
Document constitute all the share capital of the relevant member of the Group (except
for the shares in Chromalloy (Thailand) Ltd. where 1 share each is held by 6
individuals and the shares in Chromalloy Holding (Thailand) Ltd. where 1 share each is
held by 6 individuals, in each case, so as to satisfy the minimum number of
shareholders requirements under Thai law).

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	22.21	 	Solvency

	 	(a)	 	No Obligor is insolvent or unable to pay its debts (including subordinated and
contingent debts), nor could it be deemed by a court to be unable to pay its debts
within the meaning of:

	 	(i)	 	(in the case of a company incorporated in England or Wales)
Section 123(1)(e) or 123(2) of the Insolvency Act 1986; or
	 
	 	(ii)	 	(in the case of any other company) the law of the jurisdiction
in which it is incorporated,

nor, in any such case, will it become so in consequence of entering into any Finance
Document, paying any dividend and/or performing any other transaction contemplated
by any Finance Document.

	 	(b)	 	No Obligor has taken any corporate action nor so far as it is aware have any
legal proceedings or other procedure or step described in clause 32.7(a) (Insolvency
proceedings) been taken, started or threatened in relation to anything referred to in
clause 32.7 (Insolvency proceedings).

	22.22	 	Centre of main interests and establishments

For the purposes of The Council of the European Union Regulation No. 1346/2000 on Insolvency
Proceedings (the Regulation), its centre of main interest (as that term is used in Article
3(1) of the Regulation) is situated in its jurisdiction of incorporation and it has no
“establishment” (as that term is used in Article 2(h) of the Regulation) in any other
jurisdiction. This representation is made only by each Obligor which is incorporated in a
member state of the European Union (provided that this representation is not made by
Chromalloy Gas Turbine Europa B.V.).

	22.23	 	Pensions

	 	(a)	 	Except as disclosed in the Information Package and/or the clearance statements
(including the supporting applications) received from the Pensions Regulator in respect
of the Warwick International Group Pension Scheme or the CUK Limited Retirement
Benefits Scheme, no member of the Group incorporated in the UK has any material
liability in respect of any Defined Benefit Pension Scheme and, so far as it is aware,
there are no circumstances which are reasonably likely to give rise to such a material
liability.
	 
	 	(b)	 	No Pensions Event has occurred or is reasonably likely to occur.

	22.24	 	Group Structure

	 	(a)	 	The Group Structure Chart shows:

	 	(i)	 	each member of the Group and any person in whose shares any
member of the Group has an interest (and the percentage of the issued share
capital held, and whether legally or beneficially, by that member), in each
case as at the date of this Agreement;
	 
	 	(ii)	 	the jurisdiction of incorporation or establishment of each
person shown in it;

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	 	(iii)	 	the status of each person shown in it which is not a limited
liability company or corporation; and
	 
	 	(iv)	 	all inter-company loans and other steps made or taken and to be
made or taken in accordance with the Funds Flow Memorandum.

	 	(b)	 	Each Obligor is directly or indirectly a wholly-owned Subsidiary of the
Obligors’ Agent (save for Chromalloy (Thailand) Ltd. where 1 share each is owned by 6
individuals and Chromalloy Holding (Thailand) Ltd. where 1 share each is owned by 6
individuals.

	22.25	 	Dutch Borrowers

	 	(a)	 	Each Dutch Borrower complies with the Dutch Banking Act and, to the extent
applicable, any regulations promulgated thereunder.
	 
	 	(b)	 	Each Dutch Borrower has verified that each Original Lender qualifies as a
Professional Market Party and that it will have verified that each New Lender qualifies
as a Professional Market Party.
	 
	 	(c)	 	Each Dutch Borrower has given any works council (ondernemingsraad) that under
the Works Council Act (Wet op de ondernemingsraden) has the right to give advice in
relation to the entry into and performance of this Agreement, the opportunity to give
such advice and has obtained positive advice from such works council.

	22.26	 	ERISA
	 
	Employee Benefit
Plans

	 	(a)	 	Except as would not have a Material Adverse Effect:

	 	(i)	 	Neither Sequa nor any ERISA Affiliate has incurred or could be
reasonably expected to incur any liability to, or on account of, a
Multiemployer Plan as a result of a violation of Section 515 of ERISA or
pursuant to Section 4201, 4204 or 4212(c) of ERISA.
	 
	 	(ii)	 	Each Employee Plan complies in form and operation in all
material respects with ERISA, the Internal Revenue Code and all other
applicable laws and regulations.
	 
	 	(iii)	 	With respect to each Employee Plan subject to Title IV of
ERISA, the ABO funded ratio (defined for this purpose as the fair market value
of the assets of such plan divided by its accumulated benefit obligation for
FAS 35 purposes) shall not be less than 75 per cent. The calculation of such
ratio shall be computed using the actuarial assumptions and methods used by the
actuary to the Employee Plan in its most recent valuation of such plan.
	 
	 	(iv)	 	There is (to the best of Sequa’s and each ERISA Affiliates’
knowledge and belief) no litigation, arbitration, administrative proceeding or
claim pending or threatened against or with respect to any Employee Plan (other
than routine claims for benefits).
	 
	 	(v)	 	Sequa and each ERISA Affiliate has made all material
contributions to each Employee Plan and Multiemployer Plan required by law
within the applicable

70

 

	 	 	 	time limits prescribed by law, the terms of that Plan and any contract or
agreement requiring contributions to that Plan.
	 
	 	(vi)	 	Neither Sequa nor any ERISA Affiliate has ceased operations at
a facility so as to become subject to the provisions of Section 4062(e) of
ERISA, withdrawn as a substantial employer so as to become subject to the
provisions of Section 4063 of ERISA, or ceased making contributions to any
Employee Plan subject to Section 4064(a) of ERISA to which it made
contributions.
	 
	 	(vii)	 	No ERISA Event has occurred or, as at the date of this
Agreement, is reasonably likely to occur.

	 	(b)	 	Margin Regulation

	 	(i)	 	The proceeds of Utilisations by Sequa will not be used,
directly or indirectly, in whole or in part, for “purchasing” or “carrying”
Margin Stock or for any purpose which might (whether immediately, incidentally
or ultimately) cause all or any part of the Utilisations to be a “purpose
credit” within the meaning of Regulation U or Regulation X.
	 
	 	(ii)	 	Following the application of the proceeds of each Utilisation,
not more than 25 per cent (of the value of the assets of the Group (on a
consolidated basis) will be invested in Margin Stock.
	 
	 	(iii)	 	Neither Sequa nor any agent acting on its behalf has taken or
will take any action which might cause any Finance Document or any document
delivered under or in connection with any Finance Document to violate any
regulation of the Board (including Regulation T, U or X) or violate the United
States Securities Exchange Act of 1934 or any applicable US federal or state
securities law.

	 	(c)	 	US Regulation
	 
	 	 	 	Sequa is not:

	 	(i)	 	“holding company”, an “affiliate” of a “holding company” or a
“subsidiary company” of a “holding company” within the meaning of, or subject
to regulation under, the United States Public Utility Holding Company Act of
1935;
	 
	 	(ii)	 	a “public utility” within the meaning of, or subject to
regulation under, the United States Federal Power Act of 1920;
	 
	 	(iii)	 	an “investment company” or a company “controlled” by an
“investment company” within the meaning of the United States Investment Company
Act of 1940; or
	 
	 	(iv)	 	subject to regulation under any United States federal or state
law or regulation that limits its ability to incur or guarantee indebtedness.

	22.27	 	Repetition

	 	(a)	 	The Repeating Representations (and, in the case of paragraph (ii) below, the
representations set out in clauses 28.6 (Governing law and enforcement) to 28.8 (No

71

 

filing or stamp taxes) are deemed to be made by each Obligor (and the representations
given by Sequa pursuant to clause 22(b) are deemed to be made) by reference to the
facts and circumstances then existing on:

	 	(i)	 	the date of each Utilisation Request and the first day of each
Interest Period and (when the only Utilisations outstanding under this
Agreement are Letters of Credit or other utilisations under Facility C or the
Ancillary Facility) on each date which is an anniversary of, or six months
after an anniversary of, the date of this Agreement; and
	 
	 	(ii)	 	in the case of an Additional Guarantor, the day on which the
company becomes (or it is proposed that the company becomes) an Additional
Guarantor.

	 	(b)	 	The representations and warranties set out in clause 28.10 (No misleading
information) are deemed to be made by each Obligor:

	 	(i)	 	with respect to the Reports, on the date of this Agreement; and
	 
	 	(ii)	 	with respect to the Business Plan, on the date of this
Agreement,

	 	 	 	in each case, by reference to the facts and circumstances then existing.

23       Information undertakings

	 	 	 	The undertakings in this clause 29 remain in force from the date of this Agreement for so
long as any amount is outstanding under the Finance Documents or any Commitment is in force.

23.1   Annual financial statements

	 	 	 	Each Unit Parent shall supply to the Agent in sufficient copies for all the Lenders:

	 	(a)	 	as soon as the same become available, but in any event within 120 days after
the end of each Financial Year, the Combined Group Accounts for that Financial Year;
and
	 
	 	(b)	 	as soon as the same become available, but in any event no later than the 30
September following the end of each Financial Year, the audited Statutory Financial
Statements of each Obligor which is a member of its Unit for that Financial Year.

23.2   Quarterly financial statements

	 	(a)	 	Each Unit Parent shall supply to the Agent in sufficient copies for all the
Lenders as soon as the same become available, but in any event within 55 days after the
end of each Accounting Quarter, the Combined Group Accounts for that Accounting
Quarter.
	 
	 	(b)	 	Each set of Combined Group Accounts delivered pursuant to paragraph (a) above
shall include:

	 	(i)	 	a combined cash flow statement and profit and loss account for
the relevant Accounting Quarter and for the Financial Year to date; and
	 
	 	(ii)	 	a combined balance sheet as at the end of the relevant
Accounting Quarter.

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23.3   Compliance Certificate

	 	(a)	 	Each Unit Parent shall supply to the Agent, with each set of financial
statements delivered pursuant to clause 29.1(a) (Annual financial statements) or clause
29.2 (Quarterly financial statements), a Compliance Certificate setting out (in
reasonable detail) computations as to compliance with clause 30 (Financial covenants)
as at the date or, as the case may be, in respect of the four Accounting Quarters
ending on the date as at which those financial statements were drawn up.
	 
	 	(b)	 	If required to be delivered with the financial statements delivered pursuant to
clause 29.1(a) (Annual financial statements), the Compliance Certificate shall also set
out the Material Subsidiaries and (in reasonable detail) computations for the
determination of which members of the Group are Material Subsidiaries.
	 
	 	(c)	 	Each Unit Parent will, as soon as reasonably practicable after request by the
Agent, provide in respect of each Obligor a reconciliation of such Obligor’s Statutory
Financial Statements to such Obligor’s management accounts used for the preparation of
the Combined Group Accounts for that Financial Year.
	 
	 	(d)	 	Each Compliance Certificate shall be signed by two authorised officers of the
Obligors’ Agent, one of whom shall be the Senior Vice President, Finance or the Vice
President and Treasurer.
	 
	 	(e)	 	Each Unit Parent shall supply to the Agent, with the Compliance Certificate,
delivered with the Combined Group Accounts for each Financial Year, an “agreed upon
procedures” report to the Agent, by the auditors of the Obligors’ Agent to the effect
that such auditors:

	 	(i)	 	have determined that the income statement, balance sheet and
cash flow statement comprising the Combined Group Accounts for that Financial
Year are a sub-consolidation of information extracted from of the Obligors’
Agent’s audited, consolidated financial statements, prepared in accordance with
US GAAP which were filed in respect of that year with the United States
Securities and Exchange Commission; and
	 
	 	(ii)	 	confirm that the computations as to compliance with clause 30
(Financial covenants) in that Compliance Certificate have been based on the
information contained in the Combined Group Accounts for that Financial Year,

in the Agreed Form or in such other form as may be agreed by the Majority Lenders
(acting reasonably).

	 	(f)	 	Each Unit Parent shall, at the same time as the report referred to in 29.3(e)
above, supply to the Agent a negative assurance letter from the auditors of Obligor’s
Agent stating that in connection with its audits, nothing has come to its attention
that caused it to believe that any Obligor has failed to comply with the provisions of
clause 30 (Financial covenants) in so far as they relate to accounting matters.

23.4   Requirements as to financial statements

	 	(a)	 	Each set of Combined Group Accounts delivered pursuant to clause 29.1 (Annual
financial statements) or clause 29.2 (Quarterly financial statements) shall be
certified by two authorised officers of the Obligor’s Agent, one of whom shall be the
Senior

73

 

Vice President, Finance or the Vice President and Treasurer as fairly representing
the Group’s financial condition as at the end of and for the period in relation to
which those financial statements were drawn up.

	 	(b)	 	Each set of Combined Group Accounts delivered pursuant to clause 29.1 (Annual
financial statements) or clause 29.2 (Quarterly financial statements) shall be prepared
on the following basis:

	 	(i)	 	they shall be the financial statements of the Group for the
relevant period fairly representing the Group’s financial condition;
	 
	 	(ii)	 	they shall be prepared in accordance with US GAAP; and
	 
	 	(iii)	 	they shall be a sub-consolidation of information extracted
from the Obligors’ Agent’s consolidated financial statements prepared in
accordance with US GAAP which were filed in respect of the relevant period with
the United States Securities and Exchange Commission.

	 	(c)	 	Each Unit Parent shall procure that each set of Combined Group Accounts
delivered pursuant to clause 29.1 (Annual financial statements) or clause 29.2
(Quarterly financial statements) is prepared using US GAAP applied on a consistent
basis. If, in relation to any set of financial statements, there has been a change in
US GAAP since the date of this Agreement or US GAAP has not been consistently applied,
the Unit Parents shall deliver to the Agent:

	 	(i)	 	a description of any change necessary for those financial
statements to reflect US GAAP, as at the date of this Agreement and
consistently applied; and
	 
	 	(ii)	 	sufficient information, in form and substance as may be
reasonably required by the Agent, to enable the Lenders to determine whether
clause 30 (Financial covenants) has been complied with and make an accurate
comparison between the financial position indicated in those financial
statements and the financial position as determined under US GAAP at the date
of this Agreement and consistently applied.

	 	(d)	 	If a Unit Parent notifies the Agent of a change in accordance with 29.4(c)
above:

	 	(i)	 	the Unit Parents and the Agent shall enter into negotiations in
good faith with a view to agreeing:

	 	(A)	 	whether those changes to US GAAP, or to the
application of US GAAP should be accepted; and/or
	 
	 	(B)	 	whether any amendments to this Agreement are
necessary as a result of the change;

	 	(ii)	 	with respect to whether the changes to US GAAP or to the
application of US GAAP are acceptable, to the extent practicable, the Agent
will agree to accept those changes if they do not result in any material
alteration in the commercial effect of any of the obligations in this
Agreement. If the Agent accepts any such changes, any references in this
Agreement to US GAAP, as at the date of this Agreement, or to US GAAP
consistently applied, shall include such changes; and

74

 

	 	(iii)	 	with respect to any amendments to this Agreement, to the
extent practicable these amendments will be such as to ensure that the change
does not result in any material alteration in the commercial effect of the
obligations in this Agreement. If any amendments are agreed they shall take
effect and be binding on each of the Parties in accordance with their terms.

	 	(e)	 	Each Unit Parent will procure that:

	 	(i)	 	no Obligor will change the end of its financial year; and
	 
	 	(ii)	 	the Financial Year will not be changed,

from 31 December.

23.5    Information: miscellaneous

	 	 	 	Each Unit Parent shall supply to the Agent (in sufficient copies for all the Lenders, if the
Agent so requests):

	 	(a)	 	all documents dispatched by that Unit Parent to its shareholders (or any class
of them) in their capacity as shareholders or its creditors generally at the same time
as they are dispatched;
	 
	 	(b)	 	promptly upon becoming aware of them, the details of any litigation,
arbitration or administrative proceedings which are current, threatened or pending
against that Unit Parent or any member of its Unit, which are reasonably likely to be
adversely determined and which, if adversely determined, could reasonably be expected
to have a Material Adverse Effect; and
	 
	 	(c)	 	promptly, such further information regarding the financial condition, business,
operations and prospects of that Unit Parent or any member of its Unit as any Finance
Party (through the Agent) may reasonably request.

23.6   Notification of default

	 	(a)	 	Each Obligor shall notify the Agent of any Default (and the steps, if any,
being taken to remedy it) promptly upon becoming aware of its occurrence (unless that
Obligor is aware that a notification has already been provided by another Obligor or by
the Obligors’ Agent).
	 
	 	(b)	 	If the Agent reasonably believes that a Default may have occurred, the Agent
may request that each Unit Parent supply to the Agent a certificate signed by two of
the Obligor’s Agent’s authorised officers, one of whom shall be the Senior Vice
President, Finance or the Vice President and Treasurer certifying that no Default is
continuing (or if a Default is continuing, specifying the Default and the steps, if
any, being taken to remedy it) and promptly upon such a request by the Agent each Unit
Parent shall procure that such a certificate is supplied to the Agent.

23.7   “Know your customer” checks

	 	(a)	 	If:

	 	(i)	 	the introduction of or any change in (or in the interpretation,
administration or application of) any law or regulation made after the date of
this Agreement;

75

 

	 	(ii)	 	any change in the status of an Obligor or the direct or
indirect ownership of an Obligor after the date of this Agreement; or
	 
	 	(iii)	 	a proposed assignment or transfer by a Lender of any of its
rights and obligations under this Agreement to a party that is not a Lender
prior to such assignment or transfer,

obliges the Agent or any Lender (or, in the case of paragraph (iii) above, any
prospective new Lender) to comply with “know your customer” or similar
identification procedures in circumstances where the necessary information is not
already available to it, each Obligor shall promptly upon the request of the Agent
or any Lender supply, or procure the supply of, such documentation and other
evidence as is reasonably requested by the Agent (for itself or on behalf of any
Lender) or any Lender (for itself or, in the case of the event described in
paragraph (iii) above, on behalf of any prospective new Lender) in order for the
Agent, such Lender or, in the case of the event described in paragraph (iii) above,
any prospective new Lender to carry out and be satisfied it has complied with all
necessary “know your customer” or other similar checks under all applicable laws and
regulations pursuant to the transactions contemplated in the Finance Documents.

	 	(b)	 	Each Lender shall promptly upon the request of the Agent supply, or procure the
supply of, such documentation and other evidence as is reasonably requested by the
Agent (for itself) in order for the Agent to carry out and be satisfied it has complied
with all necessary “know your customer” or other similar checks under all applicable
laws and regulations pursuant to the transactions contemplated in the Finance
Documents.
	 
	 	(c)	 	Each Unit Parent shall, by not less than 10 Business Days’ prior written notice
to the Agent, notify the Agent (which shall promptly notify the Lenders) of its
intention to request that one of its Subsidiaries becomes an Additional Guarantor
pursuant to clause 34 (Changes to the Obligors).
	 
	 	(d)	 	Following the giving of any notice pursuant to 29.7(c) above, if the accession
of such Additional Guarantor obliges the Agent or any Lender to comply with “know your
customer” or similar identification procedures in circumstances where the necessary
information is not already available to it, each Unit Parent shall promptly upon the
request of the Agent or any Lender supply, or procure the supply of, such documentation
and other evidence as is reasonably requested by the Agent (for itself or on behalf of
any Lender) or any Lender (for itself or on behalf of any prospective new Lender) in
order for the Agent or such Lender or any prospective new Lender to carry out and be
satisfied it has complied with all necessary “know your customer” or other similar
checks under all applicable laws and regulations pursuant to the accession of such
Subsidiary to this Agreement as an Additional Guarantor.

23.8   Sequa

	 	 	 	Sequa shall supply to the Agent a copy of all information submitted to the Securities and
Exchange Commission in the US within 10 Business Days of such submission, insofar as that
submission relates to details of the financial indebtedness of Sequa and/or any guarantee
entered into by Sequa.

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24.      Financial covenants

24.1    Financial condition

The Obligors shall ensure that:

	 	(a)	 	the ratio of Net Borrowings on any day during the Accounting Quarter ending on
each Relevant Date set out in the table below to EBITDA for the Relevant Period ending
on that Relevant Date will not exceed the ratio set out in the relevant column in the
table below opposite that Relevant Date:

	 	 	 
	Relevant Date	 	Net Borrowings: EBITDA
	31 December 2005
	 	3.00
	31 March 2006
	 	3.00
	30 June 2006
	 	3.00
	30 September 2006
	 	3.00
	31 December 2006
	 	2.75
	31 March 2007
	 	2.75
	30 June 2007
	 	2.75
	30 September 2007
	 	2.75
	31 December 2007
	 	2.25
	31 March 2008
	 	2.25
	30 June 2008
	 	2.25
	30 September 2008
	 	2.25
	31 December 2008
	 	1.75
	The last day of each subsequent Accounting Quarter
	 	1.75

	 	(b)	 	the ratio of EBITDA to Interest Expense for any Relevant Period (commencing
with the Accounting Quarter ending on or around 31 March 2006) will not be less than
4:1;
	 
	 	(c)	 	the ratio of Cash Flow to Senior Debt Service for any Relevant Period
(commencing with the Accounting Quarter ending on or around 31 March 2006) will not be
less than 1.1:1; and
	 
	 	(d)	 	the ratio of Cash Flow to Total Debt Service for any Relevant Period
(commencing with the Accounting Quarter ending on or around 31 March 2006) will not be
less than 1:1.

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24.2   Financial covenant calculations

	 	(a)	 	Cash Flow, EBITDA, Interest Expense, Net Borrowings, Senior Debt Service, Total
Borrowings, Total Debt Service and Working Capital shall be calculated and interpreted
in accordance with the definitions set out in this Agreement, on a combined basis in
accordance with US GAAP, consistently applied (in each case as at the date of this
Agreement or with any changes agreed pursuant to clause 29.4(d) (Requirements as to
financial statements)) and shall be expressed in United States dollars.
	 
	 	(b)	 	Cash Flow, EBITDA, Interest Expense, Net Borrowings, Senior Debt Service, Total
Borrowings, Total Debt Service and Working Capital shall be determined (except as
needed to reflect the terms of this clause 30 from the Combined Group Accounts and
Compliance Certificates delivered under clause 29.1 (Annual financial statements),
clause 29.2 (Quarterly financial statements) and clause 29.3 (Compliance Certificate)
and (if applicable) any information delivered under 29.4(c)(ii) (Requirements as to
financial statements).
	 
	 	(c)	 	For the purpose of this clause 30, no item shall be included or excluded more
than once in any calculation.

24.3   Definitions

In this clause 30:

Cash Flow means, in relation to any Relevant Period, EBITDA for that Relevant Period
adjusted:

	 	(a)	 	by deducting any increase or adding any decrease in Working Capital during that
Relevant Period;
	 
	 	(b)	 	by deducting amounts paid during the Relevant Period by the Group in respect of
capital expenditure;
	 
	 	(c)	 	by deducting amounts paid during the Relevant Period by the Group in cash in
respect of Tax;
	 
	 	(d)	 	for the cash effect of extraordinary and exceptional items, to the extent that
cash was actually received or expended during the Relevant Period;
	 
	 	(e)	 	by adding the aggregate amount received during the Relevant Period by the Group
in cash in respect of any rebate of Tax;
	 
	 	(f)	 	by deducting the cash element of any increase or adding back any decrease in
the cash element of the other deferred asset caption of the Combined Group Accounts;
	 
	 	(g)	 	by deducting any decrease or adding any increase in the other long-term
liability caption of the Combined Group Accounts with the exclusion of any changes in
minority interest;
	 
	 	(h)	 	by deducting the cost of acquisition of any shares or businesses to the extent
not included in EBITDA (after adding back an amount equal to the aggregate of (i) the
Base Currency Amount of any Facility B Loans used to fund such acquisition and (ii) any
amounts received by way of debt of equity from the Obligors, the Agent (or any of

78

 

its Subsidiaries which is not a member of the Group) to fund such acquisition, up to
the cost of the acquisition); and

	 	(i)	 	by adding the net proceeds of any sale, lease, transfer or other disposal of
assets received during that Relevant Period (other than any such proceeds received in
relation to a sale, lease, transfer or other disposal of trading stock in the ordinary
course of trading of the disposing entity).

EBITDA means, in relation to any Relevant Period, the total combined operating income (or
loss) of the Group for that Relevant Period:

	 	(j)	 	excluding any royalty expenses associated with the royalty agreement between
Chromalloy Holland B.V. and Chromalloy Gas Turbine Corporation; and
	 
	 	(k)	 	adding back all amounts provided for depreciation and amortisation.

Interest Expense means, in relation to any Relevant Period, the aggregate amount of interest
(whether or not paid, payable or capitalised) and any other finance charges (whether or not
paid or payable) accrued by the Group in that Relevant Period in respect of Total Borrowings
including:

	 	(l)	 	the interest element with respect to capital leases;
	 
	 	(m)	 	commitment fees;
	 
	 	(n)	 	amounts in the nature of interest payable in respect of any shares other than
equity share capital; and
	 
	 	(o)	 	prepayment fees,

adjusted by adding back the net amount payable (or deducting the net amount receivable) by
members of the Group in respect of that Relevant Period under any interest or (so far as
they relate to interest) currency hedging arrangements.

Net Borrowings means, as at any particular time, Total Borrowings less Cash and Cash
Equivalent Investments at that time.

Relevant Date means the last day of an Accounting Quarter.

Relevant Period means:

	 	(p)	 	for the purposes of calculating the ratio in 30.1(b), 30.1(c) and 30.1(d)
(Financial condition):

	 	(i)	 	in respect of the Relevant Date occurring on or around 31 March
2006, the period from 1/1/06 — 31/3/06;
	 
	 	(ii)	 	in respect of the Relevant Date occurring on or around 30 June
2006, the period from 1/1/06 — 30/6/06;
	 
	 	(iii)	 	in respect of the Relevant Date occurring on or around 30
September 2006, the period from 1/1/06 — 30/9/06; and
	 
	 	(iv)	 	thereafter, the period of four consecutive Accounting Quarters
ending on a Relevant Date occurring on or after 31/12/06; and

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	 	(q)	 	for the purposes of the calculation of EBITDA for the ratio in 30.1(a)
(Financial condition), each period of four consecutive Accounting Quarters ending on a
Relevant Date occurring on or after 31/12/05.

Senior Debt Service means, in relation to any Relevant Period, the aggregate of:

	 	(r)	 	Interest Expense for that Relevant Period; and
	 
	 	(s)	 	scheduled repayments, and any other scheduled payments in the nature of
principal, payable by the Group in that Relevant Period but excluding repayments under
Facility B where such amount remains available to be drawn under Facility B,

in each case, under or in respect of Indebtedness for Borrowed Money under the Finance
Documents.

Total Borrowings means, as at any particular time, the aggregate outstanding principal,
capital or nominal amount of the Indebtedness for Borrowed Money of members of the Group,
other than any Indebtedness for Borrowed Money to the extent that such Indebtedness for
Borrowed Money is supported by any Letter of Credit.

For this purpose, any amount outstanding or repayable in a currency other than U.S. dollars
shall on that day be taken into account in its U.S. dollars equivalent at the rate of
exchange required under US GAAP.

Total Debt Service means, in relation to any Relevant Period, the aggregate of:

	 	(t)	 	Interest Expense for that Relevant Period;
	 
	 	(u)	 	scheduled repayments, and any other scheduled payments in the nature of
principal, payable by any member of the Group in that Relevant Period in respect of
Indebtedness for Borrowed Money under the Finance Documents;
	 
	 	(v)	 	any dividend payments made to any person which is not a member of the Group;
	 
	 	(w)	 	all capital payments falling due in relation to any lease that would be treated
as a finance lease or a capital lease;
	 
	 	(x)	 	any royalty expenses associated with the royalty agreement between Chromalloy
Holland B.V. and Chromalloy Gas Turbine Corporation;
	 
	 	(y)	 	any interest or other finance charges (whether or not paid or payable) accrued
by a member of the Group to any Subsidiary of the Obligors’ Agent which is not a member
of the Group; and
	 
	 	(z)	 	any scheduled repayments and other scheduled payments in the nature of
principal payable by any member of the Group to a Subsidiary of the Obligors’ Agent
which is not a member of the Group.

Working Capital means, at any time, the current assets of the Group being realisable within
one year (other than Cash and Cash Equivalent Investments) less current liabilities due
within one year (other than Indebtedness for Borrowed Money).

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25       General undertakings

	 	(a)	 	The undertakings in this clause 31 remain in force from the date of this
Agreement for so long as any amount is outstanding under the Finance Documents or any
Commitment is in force.
	 
	 	(b)	 	Clauses 31.1 (Authorisations), 31.2 (Compliance with laws) and 31.11 (Pari
passu ranking) shall apply to Sequa. The remaining provisions of this clause 31 shall
be read and construed as though Sequa was not an Obligor.

25.1   Authorisations

	 	(a)	 	Each Obligor shall (and each Unit Parent shall ensure that each other member of
its Unit will) promptly obtain, comply with and do all that is necessary to maintain in
full force and effect (and supply certified copies to the Agent of) any Authorisation
required under any applicable law or regulation of a Relevant Jurisdiction to:

	 	(i)	 	enable it to perform its obligations under the Finance
Documents;
	 
	 	(ii)	 	ensure the legality, validity, enforceability or admissibility
in evidence in the Relevant Jurisdictions of any Finance Document (subject in
each case to the Reservations); and
	 
	 	(iii)	 	enable it to carry on its business as it is being conducted
from time to time if failure to obtain, comply with or maintain any such
Authorisation could reasonably be expected to have a Material Adverse Effect.

	 	(b)	 	The relevant Obligor shall ensure that the Perfection Requirements are complied
with promptly and in any event before the final date on which it is necessary to carry
out any such Perfection Requirement in order to achieve the relevant perfection,
protection or priority of any Security Document.

25.2   Compliance with laws

Each Obligor shall (and each Unit Parent shall ensure that each other member of its Unit
will) comply in all respects with all laws to which it may be subject, if failure so to
comply could reasonably be expected to have a Material Adverse Effect.

25.3   Taxes

	 	(a)	 	Each Obligor shall (and each Unit Parent shall ensure that each other member of
its Unit will) pay all Taxes required to be paid by it within the time period allowed
for payment without incurring any penalties for non-payment.
	 
	 	(b)	 	Paragraph (a) above does not apply to any Taxes:

	 	(i)	 	being contested by the relevant member of the Group in good
faith and in accordance with the relevant procedures;
	 
	 	(ii)	 	for which adequate reserves are being maintained in accordance
with US GAAP; and
	 
	 	(iii)	 	where payment can be lawfully withheld and will not result in
the imposition of any material penalty nor in any Security ranking in priority
to the claims of any Finance Party under any Finance Document or to any
Security created under

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any Security Document (and provided that this paragraph (iii) does not apply
to the Security listed in schedule 8 (Existing Security) after the date of
the first Utilisation under this Agreement).

	 	(c)	 	No member of the Group may change its residence for Tax purposes.

25.4   Negative pledge

	 	(a)	 	No Obligor shall (and each Unit Parent shall ensure that no other member of its
Unit will) create or permit to subsist any Security or Quasi Security over any of its
assets.
	 
	 	(b)	 	Paragraph (a) above does not apply to:

	 	(i)	 	any Security or Quasi Security listed in schedule 8 (Existing
Security);
	 
	 	(ii)	 	any netting or set-off arrangement entered into by any member
of the Group in the ordinary course of its banking arrangements for the purpose
of netting debit and credit balances;
	 
	 	(iii)	 	any lien or right of set-off (including bankers’ liens)
arising by operation of law and in the ordinary course of business;
	 
	 	(iv)	 	any Security or Quasi Security over or affecting any asset
acquired by a member of the Group after the date of this Agreement if:

	 	(A)	 	the Security or Quasi Security was not created
in contemplation of the acquisition of that asset by a member of the
Group;
	 
	 	(B)	 	the principal amount secured has not been
increased in contemplation of or since the acquisition of that asset by
a member of the Group; and
	 
	 	(C)	 	the Security or Quasi Security is removed or
discharged within six months of the date of acquisition of such asset;

	 	(v)	 	any Security or Quasi Security over or affecting any asset of
any company which becomes a member of the Group after the date of this
Agreement, where the Security or Quasi Security is created prior to the date on
which that company becomes a member of the Group, if:

	 	(A)	 	the Security or Quasi Security was not created
in contemplation of the acquisition of that company;
	 
	 	(B)	 	the principal amount secured has not increased
in contemplation of or since the acquisition of that company; and
	 
	 	(C)	 	the Security or Quasi Security is removed or
discharged within six months of that company becoming a member of the
Group;

	 	(vi)	 	the Security or Quasi Security created pursuant to any Finance
Document;
	 
	 	(vii)	 	any netting or set-off arrangement entered into by any member
of the Group under a Hedging Document (or other derivative transaction not
prohibited by this Agreement);

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	 	(viii)	 	any retention of title, hire purchase or conditional sale arrangements or
arrangements having similar effect in respect of goods supplied to a member of
the Group in the ordinary course of its trading and on the supplier’s standard
or usual terms;
	 
	 	(ix)	 	any sale, transfer or other disposal of any asset by an Obligor
to another Obligor on terms that it may be leased to or re-acquired by that or
another Obligor;
	 
	 	(x)	 	Security or Quasi Security granted by an Obligor in favour of
another Obligor;
	 
	 	(xi)	 	any Security or Quasi Security constituted by a finance lease
permitted by the terms of clause 31.16(b)(viii) (Financial Indebtedness) over
the asset which is the subject of such finance lease;
	 
	 	(xii)	 	any Security or Quasi Security over any rental deposit granted
by any member of the Group to the holders of the freehold or leasehold interest
in real property;
	 
	 	(xiii)	 	any easements, rights-of-way, restrictions, encroachments and other minor
defects or irregularities in title, in each case which do not interfere in any
material respect with the ordinary conduct of the business of any Obligor;
	 
	 	(xiv)	 	any Security over the relevant machinery, equipment or
vehicles to secure Financial Indebtedness of the type described in clause
31.16(b)(xi) (Financial Indebtedness);
	 
	 	(xv)	 	any Security or Quasi Security by Chromalloy (Thailand) Ltd in
favour of Bangkok Bank over a deposit of up to US$28,500,000 (or its equivalent
in Thai Baht) securing the loan by Bangkok Bank to Chromalloy Holding
(Thailand) Ltd as described in the Funds Flow Memorandum; and
	 
	 	(xvi)	 	any Security or Quasi Security securing indebtedness the
principal amount of which (when aggregated with the principal amount of any
other indebtedness which has the benefit of Security or Quasi Security given by
any member of the Group other than any permitted under paragraphs (i) to (xv)
above) does not exceed U.S.$8,000,000 (or its equivalent in another currency or
currencies).

25.5   Disposals

	 	(a)	 	No Obligor shall (and each Unit Parent shall ensure that no other member of its
Unit will) enter into a single transaction or a series of transactions (whether related
or not and whether voluntary or involuntary) to sell, lease, transfer or otherwise
dispose of any asset.
	 
	 	(b)	 	Paragraph (a) above does not apply to any sale, lease, transfer or other
disposal of assets:

	 	(i)	 	made in the ordinary course of trading of the disposing entity;
	 
	 	(ii)	 	in exchange for (or the proceeds of which are used to purchase
within 12 months of the date of the disposal) other assets comparable or
superior as to type, value and quality;

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	 	(iii)	 	from a member of the Group to an Obligor;
	 
	 	(iv)	 	from a member of the Group which is not an Obligor to another
member of the Group;
	 
	 	(v)	 	which are obsolete or redundant vehicles, plant, machinery or
equipment;
	 
	 	(vi)	 	which are Cash where that disposal is not otherwise prohibited
by the Finance Documents;
	 
	 	(vii)	 	which are Cash Equivalent Investments for cash or in exchange
for other Cash Equivalent Investments;
	 
	 	(viii)	 	arising as a result of the creation of any Security or Quasi Security
permitted under clause 31.4 (Negative pledge);
	 
	 	(ix)	 	pursuant to any Permitted Reorganisation;
	 
	 	(x)	 	which is a Permitted Joint Venture Transaction;
	 
	 	(xi)	 	where the higher of the market value or consideration
receivable (when aggregated with the higher of the market value or
consideration receivable for any other sale, lease, transfer or other disposal,
other than any permitted under paragraphs (i) to (x) above) does not exceed:

	 	(A)	 	2.5% of the market value of the assets of the
Group (or its equivalent in another currency or currencies) in any
Financial Year; or
	 
	 	(B)	 	U.S.$35,000,000 in aggregate since the date of
this Agreement; or

	 	(xii)	 	pursuant to a Permitted Disposal.

25.6   Mergers and Acquisitions

	 	(a)	 	No Obligor shall (and each Unit Parent shall ensure that no other member of its
Unit will) enter into any amalgamation, demerger, merger, joint venture, consolidation
or corporate reconstruction.
	 
	 	(b)	 	No Obligor shall (and each Unit Parent shall ensure that no other member of its
Unit will):

	 	(i)	 	invest in or acquire any share in, or any security issued by,
any person, or any interest therein or in the capital of any person, or make
any capital contribution to any person (or agree to do any of the foregoing);
or
	 
	 	(ii)	 	invest in or acquire any business or going concern, or the
whole or substantially the whole of the assets or business of any person, or
any assets that constitute a division or operating unit of the business of any
person (or agree to do any of the foregoing).

	 	(c)	 	Paragraphs (a) and (b) above do not apply to:

	 	(i)	 	any Permitted Reorganisation;

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	 	(ii)	 	any acquisitions or investments by a member of the Group
arising as a result of a disposal by that or another member of the Group
permitted under clause 31.5(b) (Disposals);
	 
	 	(iii)	 	the incorporation of a company which on incorporation becomes
a Subsidiary of a member of the Group;
	 
	 	(iv)	 	investments in or the acquisition of securities which are Cash
Equivalent Investments;
	 
	 	(v)	 	a Permitted Joint Venture Transaction;
	 
	 	(vi)	 	the proposed acquisition by Warwick International Group Limited
as notified to the Arranger prior to the date of this Agreement; or
	 
	 	(vii)	 	any acquisition or investment not referred to above, the value
of which:

	 	(A)	 	does not exceed U.S.$10,000,000; and
	 
	 	(B)	 	when aggregated with the value of all other
acquisitions made by members of the Group in that Financial Year does
not exceed U.S.$20,000,000.

25.7   Change of business

Each Unit Parent shall procure that no substantial change is made to the general nature of
the business of the Group taken as a whole from that carried on at the date of this
Agreement.

25.8   Insurance

Each Obligor shall (and each Unit Parent shall ensure that each other member of its Unit
will) maintain insurances on and in relation to its business and assets with reputable
underwriters or insurance companies against those risks, and to the extent usually insured
against by prudent companies located in the same or a similar location and carrying on a
similar business.

25.9   Environmental undertakings

Each Obligor shall (and each Unit Parent shall ensure that each other member of its Unit
will):

	 	(a)	 	comply with all Environmental Laws to which it may be subject;
	 
	 	(b)	 	obtain all Environmental Licences required in connection with its business; and
	 
	 	(c)	 	comply with the terms of all those Environmental Licences,

in each case where failure to do so could reasonably be expected to have a Material Adverse
Effect.

25.10   Environmental claims

Each Obligor shall (and each Unit Parent shall ensure that each other member of its Unit
will) promptly notify the Agent of any claim made against it in respect of any actual or
alleged breach of or liability under Environmental Law which is reasonably likely to be
adversely

85

 

determined, and if adversely determined could reasonably be expected to have a Material
Adverse Effect.

25.11   Pari passu ranking

Each Obligor shall ensure that its obligations under the Finance Documents rank at all times
at least pari passu in right of priority and payment with the claims of all its other
unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law
applying to companies generally.

25.12   Assets

Each Obligor shall (and each Unit Parent shall ensure that each other member of its Unit
will) maintain in good working order and condition (ordinary wear and tear excepted) all its
assets necessary for the conduct of its business as conducted from time to time where
failure to do so could reasonably be expected to have a Material Adverse Effect.

25.13   Subordination of inter-group loans

Each Obligor shall ensure that any loan made to it by its Holding Company or any shareholder
of it or its Holding Company (other than a loan made to it by any other Obligor) is at all
times fully and effectively subordinated on insolvency pursuant to the Finance Documents.

25.14   Loans or credit

	 	(a)	 	No Obligor shall (and each Unit Parent shall ensure that no other member of its
Unit will) be a creditor in respect of any Financial Indebtedness.
	 
	 	(b)	 	Paragraph (a) above does not apply to:

	 	(i)	 	any trade credit extended by any member of the Group to its
customers on normal commercial terms and in the ordinary course of its trading
activities;
	 
	 	(ii)	 	a loan made by an Obligor to another Obligor;
	 
	 	(iii)	 	a loan made by a member of the Group which is not an Obligor
to an Obligor (provided that it is subordinated in accordance with
clause 31.13
(Subordination of inter-group loans)); or
	 
	 	(iv)	 	a loan made by a member of the Group which is not an Obligor to
another member of the Group which is not an Obligor;
	 
	 	(v)	 	loans made under an Intra-Group Loan Agreement;
	 
	 	(vi)	 	a loan made in the ordinary course of business by a member of
the Group to an employee or director of a member of the Group if the amount of
that loan, when aggregated with the amount of all loans to employees and
directors of member of the Group and the amount of all guarantees referred to
in clause 31.16(b)(v) (Financial Indebtedness) does not exceed U.S.$500,000;
	 
	 	(vii)	 	any Permitted Joint Venture Transaction;
	 
	 	(viii)	 	any loan listed in schedule 15 (Existing Loans granted by members of the
Group) provided that any such loan will only be permitted under this

86

 

paragraph (viii) up to the principal amount specified for that loan in that
Schedule (and provided that this does not limit the ability of any
Obligor(s) to increase the amount of such loan(s), to the extent permitted
under paragraph (ix) below); and

	 	(ix)	 	any loan not falling within paragraphs (i) to (viii) above the
aggregate principal amount of which at any time does not, when aggregated with
the aggregate principal amount of the Financial Indebtedness under any such
loans and the aggregate liability (whether actual or contingent) of any
guarantees at that time which are permitted under clause 31.15(b)(vii)
(Guarantees), exceed U.S.$10,000,000 (or its equivalent in another currency or
currencies).

25.15   Guarantees

	 	(a)	 	No Obligor shall (and each Unit Parent shall ensure that no other member of its
Unit will) issue or allow to remain outstanding any guarantee.
	 
	 	(b)	 	Paragraph (a) above does not apply to:

	 	(i)	 	any guarantee arising under the Finance Documents;
	 
	 	(ii)	 	guarantees referred to in clause 31.14(b) (Loans or credit);
	 
	 	(iii)	 	any performance or non-financial product guarantee which is
issued in respect of the obligations of another member of the Group and is
required to be issued or outstanding in the ordinary course of trading of that
member of the Group and which is not in respect of Financial Indebtedness;
	 
	 	(iv)	 	any guarantee issued by an Obligor in respect of the Financial
Indebtedness of another Obligor, where that Financial Indebtedness is permitted
under clause 31.16 (Financial Indebtedness);
	 
	 	(v)	 	any guarantee issued by a member of the Group (which is not an
Obligor) in respect of the Financial Indebtedness of another member of the
Group, where that Financial Indebtedness is permitted under clause 31.16
(Financial Indebtedness);
	 
	 	(vi)	 	any guarantee by a member of the Group which is a Permitted
Joint Venture Transaction; or
	 
	 	(vii)	 	any guarantee not falling within paragraphs (i) to (vi) above
where the aggregate liability (whether actual or contingent) of members of the
Group under all such guarantees does not, when aggregated with the aggregate
principal amount of any loans outstanding at that time which are permitted
under clause 31.14(b)(ix) (Loans or credit), at any time exceed U.S.$10,000,000
(or its equivalent in another currency or currencies).

25.16   Financial Indebtedness

	 	(a)	 	No Obligor shall (and each Unit Parent shall ensure that no other member of its
Unit will) incur (or agree to incur) or allow to remain outstanding any Financial
Indebtedness.
	 
	 	(b)	 	Clause 31.16(a) above does not apply to:

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	 	(i)	 	any Financial Indebtedness arising under any Finance Document;
	 
	 	(ii)	 	any Financial Indebtedness arising under a Hedging Document;
	 
	 	(iii)	 	any Financial Indebtedness outstanding at any time incurred
with the prior written consent of the Majority Lenders;
	 
	 	(iv)	 	any Financial Indebtedness in respect of a derivative
transaction permitted under clause 31.20 (Hedging);
	 
	 	(v)	 	any Financial Indebtedness which arises under or in respect of
a guarantee given by a member of the Group for the liabilities or obligations
of an employer, director or officer of any member of the Group if the maximum
actual and contingent liability under that guarantee, when aggregated with the
amount of all loans and guarantee obligations referred to in clause
31.14(b)(vi) (Loans or credit) does not exceed U.S.$500,000;
	 
	 	(vi)	 	any Financial Indebtedness which arises under or in respect of
a guarantee entered into by any member of the Group in favour of a bank in the
ordinary course of its banking arrangements for the purpose of netting debit
and credit balances of members of the Group (and provided that any net
Financial Indebtedness of the Group as a result of those arrangements is
permitted under clause 31.16(b)(xvi) below;
	 
	 	(vii)	 	any Financial Indebtedness which arises as a result of the
creation of any Security or Quasi Security permitted under clause of clause
31.4(b)(ix) (Negative pledge);
	 
	 	(viii)	 	any Financial Indebtedness owed by one member of the Group to another and
permitted under clause 31.14 (Loans or credit);
	 
	 	(ix)	 	a loan made by the Obligors’ Agent (or any subsidiary of the
Obligors’ Agent, other than a member of the Group) to an Obligor, provided that
it is subordinated in accordance with clause 31.13 (Subordination of
inter-group loans);
	 
	 	(x)	 	any Financial Indebtedness arising in respect of deferred
consideration payable for an acquisition not prohibited by the terms of this
Agreement;
	 
	 	(xi)	 	any Financial Indebtedness incurred to finance the acquisition,
construction or development of any machinery, equipment or rolling stock where
(A) the recourse of the persons providing such financing is limited to the
assets financed and the revenues to be generated by the operation of, or loss
or damage to, such assets and (B) such Financial Indebtedness is not guaranteed
by any Obligor and provided that the aggregate outstanding principal amount of
such Financial Indebtedness across the Group does not at any time exceed
U.S.$5,000,000 (or its equivalent in another currency or currencies);
	 
	 	(xii)	 	until no later than the date of the first Utilisation of the
Facilities (or, if later, to the extent covered by a Letter of Credit under
this Agreement), any Financial Indebtedness under the Existing HSBC Facility
(provided that the Existing HSBC Facility will cease to be permitted upon HSBC
Bank PLC (or one of its Affiliates) becoming a Lender under this Agreement);

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	 	(xiii)	 	any Financial Indebtedness arising under a finance or capital lease the
aggregate principal amount of which when aggregated with the Financial
Indebtedness under each other finance or capital lease entered into by members
of the Group does not at any time exceed U.S.$5,000,000 (or its equivalent in
another currency or currencies);
	 
	 	(xiv)	 	any Financial Indebtedness arising in respect of the loan of
up to $28,500,000 (or its equivalent in Thai Baht) from Bangkok Bank to
Chromalloy Holding (Thailand) Ltd as described in the Funds Flow Memorandum;
	 
	 	(xv)	 	any Financial Indebtedness owed to Bangkok Bank by Chromalloy
(Thailand) Ltd. and existing on the date of this Agreement, up to a maximum
aggregate amount of Baht 32,000,000; or
	 
	 	(xvi)	 	any Financial Indebtedness (other than any Financial
Indebtedness falling within paragraph (g) of the definition of Financial
Indebtedness) not falling within clauses 31.16(b)(i) to 31.16(b)(xv) above, the
aggregate outstanding principal amount of which across the Group does not at
any time exceed U.S.$25,000,000 (or its equivalent in another currency or
currencies).

25.17   Restricted payments

	 	(a)	 	No Unit Parent shall:

	 	(i)	 	declare, pay or make any dividend or other payment or
distribution of any kind on or in respect of any of its shares; or
	 
	 	(ii)	 	reduce, return, purchase, repay, cancel or redeem any of its shares.

	 	(b)	 	No Obligor shall pay any interest, principal or other amount in respect of any
Financial Indebtedness owed to the Obligors’ Agent or any Subsidiary of the Obligors’
Agent which is not a member of the Group.
	 
	 	(c)	 	Clauses 31.17(a) and 31.17(b) above do not apply to:

	 	(i)	 	any dividend which has been financed by Loan(s) under this
Agreement (or by loan(s) under the Intra-Group Loan Agreements) or which are
shown in the Funds Flow Memorandum; or
	 
	 	(ii)	 	any dividend, distribution or other payment (including, without
limitation, payment of interest or principal on Financial Indebtedness and any
distribution out of freely distributable reserves of Chromalloy Gas Turbine
Europa B.V.), provided that no Default is continuing or would arise as a result
of that dividend or other payment, including, without limitation, under clause
30 (Financial covenants).

25.18   Guarantor cover test

	 	(a)	 	Subject to clause 31.18(b) below, each Unit Parent shall ensure that:

	 	(i)	 	at all times from the date of this Agreement, the aggregate
pre-tax profit, assets and turnover of the Obligors (in each case calculated on
an unconsolidated basis) is at least 80% respectively of the combined pre-tax
profit, assets and turnover of the Group as evidenced by the Combined

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	 	 	 	Group Accounts most recently delivered under clause 29.1(a) (Annual
financial statements) or clause 29.2 (Quarterly financial statements); and

	 	(ii)	 	all Material Subsidiaries are Guarantors and shall remain
Guarantors for so long as they remain Material Subsidiaries or are required to
form part of the guaranteeing group in order to ensure compliance with clause
31.18(a) above.

	 	(b)	 	If additional Subsidiaries of the Group are required to become Guarantors in
order to ensure compliance with clauses 31.18(a)(i) or 31.18(a)(ii) above, each Unit
Parent shall ensure that such Subsidiaries become Guarantors in accordance with clause
34.2 (Additional Guarantors) within 30 days of such requirement arising (or, if later,
within 30 days of delivery of Combined Group Accounts demonstrating that such a
requirement has arisen).

25.19   Pensions

	 	(a)	 	Each Unit Parent shall ensure that all pension schemes maintained or operated
by or for the benefit of any member of its Unit and/or any of its employees:

	 	(i)	 	are maintained and operated in all material respects in
accordance with all applicable laws and contracts and any applicable
arrangements or undertakings entered into with or approved by the Regulator and
their governing provisions; and
	 
	 	(ii)	 	are funded substantially in accordance with the governing
provisions of the scheme with any funding shortfall advised by actuaries of
recognised standing being rectified in accordance with those governing
provisions and the Business Plan.

	 	(b)	 	Each Unit Parent shall promptly notify the Agent of any material change in the
rate of contributions to any pension schemes relating to its Unit referred to in clause
31.19(a) above paid or required to be paid (whether by the scheme actuary or otherwise)
or required (by law or otherwise).
	 
	 	(c)	 	Except for Warwick International Group Pension Scheme and the CUK Limited
Retirement Benefits Scheme, each Unit Parent shall ensure that no member of its Unit is
or has been at any time an employer (for the purposes of sections 38 to 51 of the
Pensions Act 2004) of a Defined Benefit Pension Scheme or “connected” with or an
“associate” of (as those terms are used in sections 39 or 43 of the Pensions Act 2004)
such an employer.
	 
	 	(d)	 	Each Unit Parent shall ensure that all Defined Benefit Pension Schemes operated
by or maintained for the benefit of members of its Unit and/or any of its employees are
funded based on the minimum funding requirement under section 56 of the Pensions Act
1995 or the statutory funding objective under section 222 of the Pensions Act 2004 and
that all employer contributions (as defined in section 17 of the Pensions Act 2004)
towards each Defined Benefit Pension Scheme are paid on or before their due date (as
defined in section 17 of the Pensions Act 2004).
	 
	 	(e)	 	Each Unit Parent shall promptly notify the Agent of any material change in the
rate of employer contributions to any Defined Benefit Pension Schemes relating to its
Unit mentioned in clause 31.19(c) above, paid or recommended to be paid (whether by the
scheme actuary or otherwise) or required by law or otherwise.

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	 	(f)	 	Each Obligor shall immediately notify the Agent of any investigation or
proposed investigation by the Regulator which is reasonably likely to lead to the issue
of a Financial Support Direction or a Contribution Notice to it or any member of the
Group or of the Regulator taking any other action which would have a Material Adverse
Effect in relation to the Group.
	 
	 	(g)	 	Each Obligor shall immediately notify the Agent if it receives a Financial
Support Direction or a Contribution Notice from the Regulator.
	 
	 	(h)	 	Each Unit Parent shall ensure that no action or omission is taken by any member
of its Unit in relation to a Defined Benefit Pension Scheme which will or is reasonably
likely to lead to the occurrence of a Pensions Event.

25.20   Hedging

	 	(a)	 	At or before the time that any member of a Unit enters into any Hedging
Document with a Hedging Bank, the relevant Unit Parent shall ensure that the
counterparty accedes as a Hedging Bank in accordance with clause 33.8 (Hedging Banks).
	 
	 	(b)	 	No Obligor shall (and each Unit Parent shall ensure that no other member of its
Unit will) enter (or agree to enter) into any derivative transaction, unless such
derivative transaction is to hedge actual or projected interest rate or foreign
exchange exposures arising in the ordinary course of trading of a member of the Group
and is not for speculative purposes.

25.21   Dutch Borrowers

Each Dutch Borrower shall ensure that it complies with the Dutch Banking Act and, to the
extent applicable, any regulations promulgated thereunder.

25.22   Professional Market Party

	 	(a)	 	Each Lender represents and warrants for the benefit of each Dutch Borrower that
it qualifies as, and will at all times be, a Professional Market Party.
	 
	 	(b)	 	Subject to clause 31.22(c) below, each Existing Lender (as defined in clause
33.1 (Assignments and transfers by the Lenders)) shall notify the Obligors’ Agent and
any Dutch Borrower promptly of any proposed transfer or assignment, even in
circumstances where the consent of the Obligors’ Agent is not required under clause
33.2(a) (Conditions of assignment or transfer) and the Existing Lender shall provide
each Dutch Borrower with information in respect of the proposed New Lender (as defined
in clause 33.1 (Assignments and transfers by the Lenders)) reasonably required by that
Dutch Borrower with a view to enabling that Dutch Borrower to verify the Professional
Market Party status of such proposed New Lender at least five Business Days prior to
the proposed Transfer Date or assignment date pursuant to which the proposed New Lender
would become a New Lender under this Agreement.
	 
	 	(c)	 	The Existing Lender shall not be required to provide a Dutch Borrower with
information where the Professional Market Party status of a New Lender can be
determined by a Dutch Borrower on the basis of the New Lender’s entry in a public
register (including on-line registers available on the internet) of the Dutch Central
Bank, or a public register of a regulator of a country referred to in Clause 1.e.11 of
the Dutch Banking Act Exemption Regulation exercising supervision over the

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     Professional Market Party, or to the extent accessible via the internet and
correctly reflected therein.

25.23   Conditions subsequent

Each Unit Parent shall ensure that each of the documents and evidence listed in schedule 16
(Conditions subsequent) is supplied to the Agent, and each of the undertakings set out in
schedule 16 (Conditions subsequent) is complied with, in each case, by the time specified in
that schedule.

26       Events of Default

Each of the events or circumstances set out in this clause 32 is an Event of Default.

26.1    Non-payment

An Obligor does not pay on the due date any amount payable pursuant to a Finance Document at
the place at and in the currency in which it is expressed to be payable unless:

	 	(a)	 	its failure to pay is caused by administrative or technical error; and
	 
	 	(b)	 	payment is made within 3 Business Days of its due date.

26.2    Financial covenants

Any requirement of clause 30 (Financial covenants) is not satisfied.

26.3    Other obligations

	 	(a)	 	An Obligor does not comply with any provision of the Finance Documents
(applicable to it, in the case of Sequa only) (other than those referred to in clause
32.1 (Non-payment) and clause 30 (Financial covenants)).
	 
	 	(b)	 	No Event of Default in relation to clause 31.1(a) (Authorisations) will occur
if the failure to comply is capable of remedy and is remedied within 15 Business Days
of the Agent giving notice to the Obligors’ Agent or any Obligor becoming aware of the
failure to comply.

26.4   Misrepresentation

Any representation or statement made or deemed to be made by an Obligor:

	 	(a)	 	in the Finance Documents is or proves to have been incorrect or misleading; or
	 
	 	(b)	 	pursuant to any certificate or other document delivered by or on behalf of any
Obligor pursuant to any Finance Document is not accurate or is misleading,

in each case in any material respect when made or deemed to be made unless the underlying
circumstances (if capable of remedy) are remedied within 15 Business Days of the earlier of
the Agent giving notice to the relevant Obligor or any Obligor becoming aware of the
underlying circumstances.

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26.5   Cross default

	 	(a)	 	Any Financial Indebtedness of any member of the Group is not paid when due nor
within any originally applicable grace period.
	 
	 	(b)	 	Any Financial Indebtedness of any member of the Group is declared to be or
otherwise becomes due and payable prior to its specified maturity as a result of an
event of default (however described).
	 
	 	(c)	 	Any commitment for any Financial Indebtedness of any member of the Group is
cancelled or suspended by a creditor of any member of the Group as a result of an event
of default (however described).
	 
	 	(d)	 	Any creditor of any member of the Group becomes entitled to declare any
Financial Indebtedness of any member of the Group due and payable prior to its
specified maturity as a result of an event of default (however described).
	 
	 	(e)	 	No Event of Default will occur under this clause 32.5 if the aggregate amount
of Financial Indebtedness or commitment for Financial Indebtedness falling within
clauses 32.5(a) to 32.5(d) above is less than U.S.$2,500,000 (or its equivalent in any
other currency or currencies).

26.6   Insolvency

	 	(a)	 	Sequa or a Material Subsidiary is unable or admits inability to pay its debts
as they fall due, suspends, or threatens to suspend, making payments on any of its
debts (or any class of them) or, by reason of actual or anticipated financial
difficulties, commences negotiations with one or more of its creditors (or any class of
them) with a view to rescheduling any of its indebtedness (provided that, for the
purposes of this clause 32.6(a), no Material Subsidiary shall be deemed to be unable to
pay its debts by reason only of Section 123(i)(a) of the Insolvency Act 1986, in
respect of a written demand for less than U.S.$1,000,000 or its equivalent in other
currencies).
	 
	 	(b)	 	The value of the assets of Sequa or any Material Subsidiary is less than its
liabilities (taking into account contingent and prospective liabilities).
	 
	 	(c)	 	A moratorium is declared in respect of any indebtedness of Sequa or any
Material Subsidiary.

26.7   Insolvency proceedings

	 	(a)	 	Subject to clause 32.7(b) below, any corporate action, legal proceedings or
other constitutional or legal procedure or step is taken in relation to:

	 	(i)	 	the suspension of payments, a moratorium of any indebtedness,
winding-up, dissolution, administration or reorganisation (by way of voluntary
arrangement, scheme of arrangement or otherwise) of any Material Subsidiary
other than a Permitted Reorganisation of Sequa or a member of the Group which
is not an Obligor;
	 
	 	(ii)	 	a composition, compromise, assignment or arrangement with any
creditor of Sequa or any Material Subsidiary;
	 
	 	(iii)	 	the appointment of a liquidator (other than in respect of a
solvent liquidation of a member of the Group which is not an Obligor),
receiver, administrative

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receiver, administrator, compulsory manager or other similar officer in
respect of Sequa or any Material Subsidiary or any of its assets; or

	 	(iv)	 	enforcement of any Security over any assets of Sequa or any
Obligor having an aggregate value of at least U.S.$400,000,

or any analogous procedure or step is taken in any jurisdiction.

	 	(b)	 	Clause 32.7(a) above shall not apply to any corporate action, legal proceedings
or other constitutional or legal procedure or step which is frivolous or vexatious and
which is discharged, stayed or dismissed within 10 Business Days of its commencement
(or in the case of a Material Subsidiary incorporated in the Netherlands, within 20
Business Days of its commencement).

26.8   Creditors’ process

Any expropriation, attachment, sequestration, distress or execution or any analogous process
in any jurisdiction affects any asset or assets of a member of the Group and, if capable of
discharge, is not discharged within 10 Business Days or in the case of a Dutch pre-judgement
attachment (conservatoir beslag), within 20 Business Days.

26.9   Ownership of the Obligors

	 	(a)	 	Subject to clause 32.9(b) below, an Obligor other than Sequa is not or ceases
to be a wholly owned Subsidiary of the Obligors’ Agent or an Obligor other than Sequa
is not or ceases to be a wholly-owned Subsidiary of the Unit Parent of which it is
expressed to be a Subsidiary in the Group Structure Chart without the prior consent of
the Majority Lenders.
	 
	 	(b)	 	There shall be no breach of clause 32.9(a) above, as a result of:

	 	(i)	 	6 individuals owning 1 share each in Chromalloy (Thailand) Ltd;
	 
	 	(ii)	 	6 individuals owning 1 share each in Chromalloy Holding
(Thailand) Company Ltd; or
	 
	 	(iii)	 	a Permitted Disposal.

26.10    Unlawfulness

It is or becomes unlawful for an Obligor to perform any of its obligations under the Finance
Documents.

26.11   Repudiation

An Obligor repudiates a Finance Document or evidences an intention to repudiate a Finance
Document.

26.12   Security and guarantees

Any Security Document or any guarantee in or any subordination under any Finance Document is
not in full force and effect or any Security Document does not create in favour of the
Security Agent for the benefit of the Finance Parties the Security which it is expressed to
create with the ranking and priority it is expressed to have in a manner and to an extent

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reasonably considered by the Majority Lenders to be materially adverse to the interests of
the Finance Parties.

26.13   Material adverse change

An event or circumstance occurs which has or could reasonably be expected to have a Material
Adverse Effect.

26.14   Cessation of business

Any Obligor suspends or ceases (or threatens to suspend or cease) to carry on all or a
material part of its business save as a result of a Permitted Reorganisation and with the
prior consent of the Majority Lenders.

26.15   Litigation

Any litigation, arbitration, proceeding or dispute is started or threatened which is
reasonably likely to be adversely determined and would reasonably be expected to have a
Material Adverse Effect.

26.16   Pensions Event

Any Pensions Event occurs or is reasonably likely to occur and such Pensions Event could
reasonably be expected to have a Material Adverse Effect.

26.17   Acceleration

	 	(a)	 	On and at any time after the occurrence of an Event of Default which is
continuing the Agent may, and shall if so directed by the Majority Lenders, by notice
to the Obligors’ Agent:

	 	(i)	 	cancel the Total Commitments whereupon they shall immediately
be cancelled;
	 
	 	(ii)	 	declare that all or part of the Utilisations, together with
accrued interest, and all other amounts accrued or outstanding under the
Finance Documents be immediately due and payable, whereupon they shall become
immediately due and payable;
	 
	 	(iii)	 	declare that all or part of the Utilisations be payable on
demand, whereupon they shall immediately become payable on demand by the Agent
on the instructions of the Majority Lenders; and
	 
	 	(iv)	 	declare that full cash cover in respect of each Letter of
Credit is immediately due and payable whereupon it shall become immediately due
and payable.

	 	(b)	 	Promptly after being notified by the Agent of the date of an acceleration
pursuant to clause 32.17(a) above each Ancillary Lender shall by notice to the
Borrowers:

	 	(i)	 	cancel its Ancillary Commitment whereupon it shall immediately
be cancelled;
	 
	 	(ii)	 	declare that all or the corresponding part of the utilisations
under any Ancillary Facility provided by that Ancillary Lender, together with
accrued interest, full cash cover in respect of each Letter of Credit issued by
that Lender under that Ancillary Facility, and all or the corresponding part of
all

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other amounts accrued or outstanding in respect of that Ancillary Facility
be immediately due and payable, whereupon they shall become immediately due
and payable; and/or

	 	(iii)	 	declare that all or the corresponding part of the utilisations
under any Ancillary Facility provided by that Ancillary Lender, together with
accrued interest, full cash cover in respect of each Letter of Credit issued by
that Lender under that Ancillary Facility, and all or the corresponding part
of all other amounts accrued or outstanding in respect of that Ancillary
Facility be payable upon demand, whereupon they shall immediately become
payable on demand by that Ancillary Lender (on the instructions of the Agent,
if so directed by the Majority Lenders).

26.18   ERISA

In the case of Sequa only:

	 	(a)	 	In the case of Sequa only:
	 
	 	(b)	 	any event or events described in paragraph (c) result(s) in the imposition of
or granting of security, or the incurring of a liability or a material risk of
incurring a liability; and
	 
	 	(c)	 	that security or liability, individually and/or in the aggregate, has or could
reasonably be expected to have a Material Adverse Effect.

	 	(i)	 	any ERISA Event occurs;
	 
	 	(ii)	 	Sequa or any ERISA Affiliate incurs or is likely to incur a
liability to or on account of a Multiemployer Plan as a result of a violation
of Section 515 of ERISA or under Section 4201,4204 or 4212(c) of ERISA;
	 
	 	(iii)	 	with respect to each Employee Plan subject to Title IV of
ERISA, the ABO funded ratio (defined for this purpose as the fair market value
of the assets of such plan divided by its accumulated benefit obligation) is
less than 75 per cent. The calculation of such ratio shall be computed using
the actuarial assumptions and methods used by the actuary to the Employee Plan
in its most recent valuation of such plan; or
	 
	 	(iv)	 	Sequa or any ERISA Affiliate incurs a liability to or on
account of an Employee Plan under Section 409, 502(i) or 502(l) of ERISA or
Section 401 (a)(29), 4971 or 4975 of the Internal Revenue Code

27       Changes to the Lenders

27.1   Assignments and transfers by the Lenders

Subject to this clause 33, a Lender (the Existing Lender) may:

	 	(a)	 	assign any of its rights; or
	 
	 	(b)	 	transfer by novation any of its rights and obligations,

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	 	 	to another bank or financial institution or to a trust, fund or other entity which is
regularly engaged in or established for the purpose of making, purchasing or investing in
loans, securities or other financial assets (the New Lender).
	 
	27.2	 	Conditions of assignment or transfer

	 	(a)	 	The consent of the Obligors’ Agent is required for an assignment or transfer by
an Existing Lender, unless:

	 	(i)	 	the assignment or transfer is to another Lender or an Affiliate
of a Lender; or
	 
	 	(ii)	 	an Event of Default is continuing.

	 	(b)	 	The consent of each Fronting Bank is required for any assignment or transfer of
an Existing Lender.
	 
	 	(c)	 	The consent of the Obligors’ Agent to an assignment or transfer must not be
unreasonably withheld or delayed. The Obligors’ Agent will be deemed to have given its
consent five Business Days after the Existing Lender has requested it unless consent is
expressly refused by the Obligors’ Agent within that time.
	 
	 	(d)	 	The consent of the Obligors’ Agent to an assignment or transfer may be withheld
if:

	 	(i)	 	the assignment or transfer would result in a material increase
to the Mandatory Cost unless the proposed New Lender will be lending from a
Facility Office in the United Kingdom; or
	 
	 	(ii)	 	the proposed New Lender is not a Professional Market Party.

	 	(e)	 	An assignment will only be effective on:

	 	(i)	 	receipt by the Agent of written confirmation from the New
Lender (in form and substance satisfactory to the Agent) that the New Lender
will assume the same obligations to the other Finance Parties as it would have
been under if it was an Original Lender; and
	 
	 	(ii)	 	performance by the Agent of all necessary “know your customer”
or other similar checks under all applicable laws and regulations in relation
to such assignment to a New Lender, the completion of which the Agent shall
promptly notify to the Existing Lender and the New Lender.

	 	(f)	 	A transfer will only be effective if the procedure set out in clause 33.5
(Procedure for transfer) is complied with.
	 
	 	(g)	 	Any assignment or transfer by an Existing Lender to a New Lender shall only be
effective if it transfers or assigns the Existing Lender’s share of each Facility pro
rata unless the Agent agrees otherwise.
	 
	 	(h)	 	If:

	 	(i)	 	a Lender assigns or transfers any of its rights or obligations
under the Finance Documents or changes its Facility Office; and
	 
	 	(ii)	 	as a result of circumstances existing at the date the
assignment, transfer or change occurs, an Obligor would be obliged to make a
payment to the New Lender or Lender acting through its new Facility Office under clause 22 (Tax
gross-up and indemnities) or clause 23 (Increased Costs),

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	 	 	then the New Lender or Lender acting through its new Facility Office is only entitled to
receive payment under those clauses to the same extent as the Existing Lender or Lender
acting through its previous Facility Office would have been if the assignment, transfer or
change had not occurred.
	 
	27.3	 	Assignment or transfer fees

	 	(a)	 	The New Lender shall, on the date upon which an assignment or transfer takes
effect other than in respect of a transfer by a Lender to its Affiliates, pay to the
Agent (for its own account) a fee of £1,000.
	 
	 	(b)	 	The New Lender shall, promptly upon request of the Agent, pay the costs and
expenses relating to any Security or Security Document governed by Thai law, in
connection with the assignment or transfer to that New Lender, to the extent such costs
and expenses are for the account of that New Lender pursuant to clause 26.4(b)
(Security Agent expenses).

	27.4	 	Limitation of responsibility of Existing Lenders

	 	(a)	 	Unless expressly agreed to the contrary, an Existing Lender makes no
representation or warranty and assumes no responsibility to a New Lender for:

	 	(i)	 	the legality, validity, effectiveness, adequacy or
enforceability of the Finance Documents or any other documents;
	 
	 	(ii)	 	the financial condition of any Obligor or other person;
	 
	 	(iii)	 	the performance and observance by any Obligor or other person
of its obligations under the Finance Documents or any other documents; or
	 
	 	(iv)	 	the accuracy of any statements (whether written or oral) made
in or in connection with any Finance Document or any other document,

	 	 	 	and any representations or warranties implied by law are excluded.
	 
	 	(b)	 	Each New Lender confirms to the Existing Lender and the other Finance Parties
that it:

	 	(i)	 	has made (and shall continue to make) its own independent
investigation and assessment of the financial condition and affairs of each
Obligor and its related entities in connection with its participation in this
Agreement and has not relied exclusively on any information provided to it by
the Existing Lender or any other Finance Party in connection with any Finance
Document; and
	 
	 	(ii)	 	will continue to make its own independent appraisal of the
creditworthiness of each Obligor and its related entities and any other person
whilst any amount is or may be outstanding under the Finance Documents or any
Commitment is in force.

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	 	(c)	 	Nothing in any Finance Document obliges an Existing Lender to:

	 	(i)	 	accept a re-transfer from a New Lender of any of the rights and
obligations assigned or transferred under this clause 33; or
	 
	 	(ii)	 	support any losses directly or indirectly incurred by the New Lender by reason of the
non-performance by any Obligor or any other person of its obligations under the Finance
Documents or otherwise.

	27.5	 	Procedure for transfer

	 	(a)	 	Subject to the conditions set out in this clause 33 a transfer is effected in
accordance with clause 33.5(c) below when the Agent executes an otherwise duly
completed Transfer Certificate delivered to it by the Existing Lender and the New
Lender. The Agent shall, subject to paragraph (b) below, as soon as reasonably
practicable after receipt by it of a duly completed Transfer Certificate appearing on
its face to comply with the terms of this Agreement and delivered in accordance with
the terms of this Agreement, execute that Transfer Certificate.
	 
	 	(b)	 	The Agent shall only be obliged to execute a Transfer Certificate delivered to
it by the Existing Lender and the New Lender once it is satisfied it has complied with
all necessary “know your customer” or other similar checks under all applicable laws
and regulations in relation to the transfer to such New Lender.
	 
	 	(c)	 	On the Transfer Date:

	 	(i)	 	to the extent that in the Transfer Certificate the Existing
Lender seeks to transfer by novation its rights and obligations under the
Finance Documents each of the Obligors and the Existing Lender shall be
released from further obligations towards one another under the Finance
Documents and their respective rights against one another under the Finance
Documents shall be cancelled (being the Discharged Rights and Obligations);
	 
	 	(ii)	 	each of the Obligors and the New Lender shall assume
obligations towards one another and/or acquire rights against one another which
differ from the Discharged Rights and Obligations only insofar as that Obligor
and the New Lender have assumed and/or acquired the same in place of that
Obligor and the Existing Lender;
	 
	 	(iii)	 	the Agent, the Arranger, the Security Agent, the New Lender,
the other Lenders, the Fronting Banks and any relevant Ancillary Lender shall
acquire the same rights and assume the same obligations between themselves as
they would have acquired and assumed had the New Lender been an Original Lender
with the rights and/or obligations acquired or assumed by it as a result of the
transfer and to that extent the Agent, the Arranger, the Security Agent, the
Fronting Banks, any relevant Ancillary Lender and the Existing Lender shall
each be released from further obligations to each other under the Finance
Documents;
	 
	 	(iv)	 	the New Lender shall become a Party as a “Lender”; and
	 
	 	(v)	 	the New Lender agrees that it shall be bound by clause 31.22
(Professional Market Party).

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	27.6	 	Copy of Transfer Certificate to the Obligors’ Agent
	 
	 	 	The Agent shall, as soon as reasonably practicable after it has executed a Transfer
Certificate, send to the Obligors’ Agent a copy of that Transfer Certificate.
	 
	27.7	 	Authorisation
	 
	 	 	Each of the Parties authorises the Agent to sign each Transfer Certificate on its behalf and
will provide each letter of consent or other documents that the Agent or the Security Agent
may reasonably require in connection with this authorisation.
	 
	27.8	 	Hedging Banks

	 	(a)	 	Any person which is a Lender (or an Affiliate of a Lender) which has entered
into a Hedging Document with a Borrower may as described in this clause 33.8 accede to
this Agreement as Hedging Bank in respect of that Hedging Document, for the purpose of
sharing in any recoveries under the Security Documents in respect of any liabilities
owed to that Hedging Bank by the relevant Obligor under that Hedging Document. That
person shall become a Hedging Bank by:

	 	(i)	 	delivery to the Security Agent of a duly completed and signed
Hedging Bank Accession Letter; and
	 
	 	(ii)	 	the Security Agent executing that Hedging Bank Accession
Letter.

	 	(b)	 	The Security Agent shall, as soon as reasonably practicable after receipt by it
of a duly completed Hedging Bank Accession Letter appearing on its face to comply with
the terms of this Agreement delivered in accordance with the terms of this Agreement,
execute the Hedging Bank Accession Letter.
	 
	 	(c)	 	The rights or obligations of any person as Hedging Bank are separate and
independent from any rights or obligations it may have as a Lender or in any other
capacity under the Finance Documents.
	 
	 	(d)	 	Each Hedging Bank confirms and undertakes to each other Finance Party (and
without giving any rights to any Obligor) that:

	 	(i)	 	the Security Agent may act as described in clause 35.8
(Majority Lenders’ instructions), and the Hedging Bank has no right (in its
capacity as such) to give any instructions to the Security Agent, including to
take any action under the Security Documents; and
	 
	 	(ii)	 	it will notify the Agent promptly of any default by any Obligor
under the Hedging Document.

	27.9	 	Fronting Banks

	 	(a)	 	Any person which is a Lender may as described in this clause 33.9 accede to
this Agreement as a Fronting Bank. That person shall become a Fronting Bank by:

	 	(i)	 	delivery to the Agent of a duly completed and signed Fronting
Bank Accession Letter; and
	 
	 	(ii)	 	the Agent executing that Fronting Bank Accession Letter.

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	 	(b)	 	The Agent shall, as soon as reasonably practicable after receipt by it of a
duly completed Fronting Bank Accession Letter appearing on its face to comply with the
terms of this Agreement delivered in accordance with the terms of this Agreement,
execute the Fronting Bank Accession Letter.

	27.10	 	Disclosure of information
	 
	 	 	Any Lender may disclose to any of its Affiliates and any other person:

	 	(a)	 	to (or through) whom that Lender assigns or transfers (or may potentially
assign or transfer) all or any of its rights and obligations under this Agreement;
	 
	 	(b)	 	with (or through) whom that Lender enters into (or may potentially enter into)
any sub-participation in relation to, or any other transaction under which payments are
to be made by reference to, this Agreement or any Obligor; or
	 
	 	(c)	 	to whom, and to the extent that, information is required to be disclosed by any
applicable law or regulation,

	 	 	any information about any Obligor, the Group and the Finance Documents as that Lender shall
consider appropriate if, in relation to clauses 33.10(a) and 33.10(b) above, the person to
whom the information is to be given has entered into a Confidentiality Undertaking. This
clause 33 supersedes any previous agreement relating to the confidentiality of this
information.
	 
	28	 	Changes to the Obligors
	 
	28.1	 	Assignments and transfer by Obligors
	 
	 	 	No Obligor may assign any of its rights or transfer any of its rights or obligations under
the Finance Documents.
	 
	28.2	 	Additional Guarantors

	 	(a)	 	Subject to compliance with the provisions of clauses 29.7(c) and 29.7(d) (“Know
your customer” checks), the Obligors’ Agent may request that any wholly owned
Subsidiary of a Unit Parent become an Additional Guarantor. That Subsidiary and/or any
Subsidiary which is required by this Agreement to become an Additional Guarantor shall
become an Additional Guarantor if:

	 	(i)	 	the Obligors’ Agent delivers to the Agent a duly completed and
executed Guarantor Accession Letter; and
	 
	 	(ii)	 	the Agent has received all of the documents and other evidence
listed in part 2 of schedule 2 (Conditions precedent) in relation to that
Additional Guarantor, each in form and substance satisfactory to the Agent.

	 	(b)	 	The Agent shall notify the Obligors’ Agent and the Lenders promptly upon being
satisfied that it has received (in form and substance satisfactory to it) all the
documents and other evidence listed in part 2 of schedule 2 (Conditions precedent).

	28.2A 	 	Additional Borrowers

	 	(c)	 	Subject to compliance with the provisions of clauses 29.7(c) and 29.7(d) (“Know
your customer” checks), the Obligor’s Agent may request that any of its wholly owned
Subsidiaries becomes an Additional Borrower. That Subsidiary shall become an
Additional Borrower if:

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	 	(i)	 	all the Lenders approve the addition of that Subsidiary;
	 
	 	(ii)	 	that Subsidiary is incorporated in the same jurisdiction as an
existing Obligor (or all the Lenders approve the jurisdiction in which that
Subsidiary is incorporated);
	 
	 	(iii)	 	the Obligor’s Agent delivers to the Agent a duly completed and
executed Accession Letter;
	 
	 	(iv)	 	the Obligor’s Agent confirms that no Default is continuing or
would occur as a result of that Subsidiary becoming an Additional Borrower; and
	 
	 	(v)	 	the Agent has received all of the documents and other evidence
listed in part 2 of schedule 2 (Conditions precedent) in relation to that
Additional Borrower, each in form and substance satisfactory to the Agent.

	 	(d)	 	The Agent shall notify the Obligor’s Agent and the Lenders promptly upon being
satisfied that it has received (in form and substance satisfactory to it) all the
documents and other evidence listed in part 2 of schedule 2 (Conditions precedent).

	28.2B 	 	Resignation of a Borrower

	 	(e)	 	The Obligor’s Agent may request that a Borrower (other than the Obligor’s
Agent) ceases to be a Borrower by delivering to the Agent a Resignation Letter.
	 
	 	(f)	 	The Agent shall accept a Resignation Letter and notify the Obligor’s Agent and
the Lenders of its acceptance if:

	 	(i)	 	no Default is continuing or would result from the acceptance of
the Resignation Letter (and the Obligor’s Agent has confirmed this is the
case); and
	 
	 	(ii)	 	the Borrower is under no actual or contingent obligations as a
Borrower under any Finance Documents,

	 	 	whereupon that company shall cease to be a Borrower and shall have no further rights or
obligations under the Finance Documents.
	 
	28.3	 	Repetition of Representations
	 
	 	 	Delivery of a Guarantor Accession Letter constitutes confirmation by the relevant Subsidiary
that the Repeating Representations and each of the representations set out in clauses 28.5
(Validity and admissibility in evidence), 28.7 (Deduction of Tax) and 28.8 (No filing or
stamp taxes) are true and correct in relation to it as at the date of delivery as if made by
reference to the facts and circumstances then existing.
	 
	28.4	 	Resignation of a Guarantor

	 	(a)	 	A Guarantor may request that it ceases to be a Guarantor by delivering to the
Agent a Resignation Letter.

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	 	(b)	 	The Agent shall accept a Resignation Letter and notify the other Finance
Parties of its acceptance if no Default is continuing or would result from the
acceptance of the Resignation Letter (and the Guarantor has confirmed that this is the
case).

	29	 	Role of the Agent, the Security Agent and the Arranger
	 
	29.1	 	Appointment of the Agent and the Security Agent

	 	(a)	 	Each other Finance Party appoints the Agent to act as its agent under and in
connection with the Finance Documents.
	 
	 	(b)	 	Each other Finance Party appoints the Security Agent to act as security trustee
under and in connection with the Finance Documents in relation to any security interest
which is expressed to be or is construed to be governed by English law, or any other
law from time to time designated by the Security Agent and an Obligor.
	 
	 	(c)	 	Except as expressly provided in paragraph (b) above, and without limiting or
affecting clause 38.11 (Parallel Debt), each other Finance Party appoints the Security
Agent to act as security agent under and in connection with the Finance Documents.
	 
	 	(d)	 	Each other Finance Party authorises each of the Agent and the Security Agent to
exercise the rights, powers, authorities and discretions specifically given to it under
or in connection with the Finance Documents together with any other incidental rights,
powers, authorities and discretions.
	 
	 	(e)	 	Each other Finance Party authorises each of the Agent and the Arranger to
agree, accept and sign on its behalf the terms of any reliance or engagement letter in
relation to any Report or any other report or letter provided by any person in
connection with the Finance Documents or the transactions contemplated in them.

	29.2	 	Duties of the Agent and the Security Agent

	 	(a)	 	The Agent shall promptly forward to a Party the original or a copy of any
document which is delivered to the Agent for that Party by any other Party.
	 
	 	(b)	 	Except where a Finance Document specifically provides otherwise, the Agent is
not obliged to review or check the adequacy, accuracy or completeness of any document
it forwards to another Party.
	 
	 	(c)	 	If the Agent receives notice from a Party referring to this Agreement,
describing a Default and stating that the circumstance described is a Default, it shall
promptly notify the Finance Parties.
	 
	 	(d)	 	If the Agent is aware of the non-payment of any principal, interest, commitment
fee or other fee payable to a Finance Party (other than the Agent or the Arranger)
under this Agreement it shall promptly notify the other Finance Parties.
	 
	 	(e)	 	The Agent shall promptly send to the Security Agent such certification as the
Security Agent may require pursuant to paragraph 7 (Basis of distribution) of schedule
6 (Security agency provisions).
	 
	 	(f)	 	The duties of the Agent and the Security Agent under the Finance Documents are
solely mechanical and administrative in nature.

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	29.3	 	Role of the Arranger
	 
	 	 	Except as specifically provided in the Finance Documents, the Arranger does not have any
obligations of any kind to any other Party under or in connection with any Finance Document.
	 
	29.4	 	Role of the Security Agent
	 
	 	 	The Security Agent shall not be an agent of (except as expressly provided in any Finance
Document) any Finance Party under or in connection with any Finance Document.
	 
	29.5	 	No fiduciary duties

	 	(a)	 	Nothing in this Agreement constitutes the Agent, the Security Agent (except as
expressly provided in any Finance Document) or the Arranger as a trustee or fiduciary
of any other person.
	 
	 	(b)	 	None of the Agent, the Security Agent (except as expressly provided in any
Finance Document) or the Arranger shall be bound to account to any Lender for any sum
or the profit element of any sum received by it for its own account.

	29.6	 	Business with the Group
	 
	 	 	The Agent, the Security Agent and the Arranger may accept deposits from, lend money to and
generally engage in any kind of banking or other business with any member of the Group or
any other person.
	 
	29.7	 	Rights and discretions of the Agent and the Security Agent

	 	(a)	 	The Agent and the Security Agent may rely on:

	 	(i)	 	any representation, notice or document believed by it to be
genuine, correct and appropriately authorised; and
	 
	 	(ii)	 	any statement made by a director, authorised signatory or
employee of any person regarding any matters which may reasonably be assumed to
be within his knowledge or within his power to verify.

	 	(b)	 	The Agent and the Security Agent may assume (unless it has received notice to
the contrary in its capacity as agent for the Lenders or, as the case may be, as
security trustee for the Finance Parties) that:

	 	(i)	 	no Default has occurred;
	 
	 	(ii)	 	any right, power, authority or discretion vested in any Party
or the Majority Lenders has not been exercised; and
	 
	 	(iii)	 	any notice or request made by the Obligors’ Agent (other than
a Utilisation Request or Selection Notice) is made on behalf of and with the
consent and knowledge of all the Obligors.

	 	(c)	 	Each of the Agent and the Security Agent may engage, pay for and rely on the
advice or services of any lawyers, accountants, surveyors or other experts.
	 
	 	(d)	 	Each of the Agent and the Security Agent may act in relation to the Finance
Documents through its personnel and agents.

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	 	(e)	 	The Agent may disclose to any other Party any information it reasonably
believes it has received as agent under this Agreement.
	 
	 	(f)	 	Notwithstanding any other provision of any Finance Document to the contrary,
none of the Agent, the Security Agent or the Arranger is obliged to do or omit to do
anything if it would or might in its reasonable opinion constitute a breach of any law
or regulation or a breach of a fiduciary duty or duty of confidentiality.

	29.8	 	Majority Lenders’ instructions

	 	(a)	 	Unless a contrary indication appears in a Finance Document, the Agent and the
Security Agent shall (i) exercise any right, power, authority or discretion vested in
it as Agent or Security Agent, as the case may be, in accordance with any instructions
given to it by the Majority Lenders (or, if so instructed by the Majority Lenders,
refrain from exercising any right, power, authority or discretion vested in it as Agent
or Security Agent, as the case may be) and (ii) not be liable for any act (or omission)
if it acts (or refrains from taking any action) in accordance with an instruction of
the Majority Lenders.
	 
	 	(b)	 	Unless a contrary indication appears in a Finance Document, any instructions
given by the Majority Lenders will be binding on all the Finance Parties.
	 
	 	(c)	 	Each of the Agent and the Security Agent may refrain from acting in accordance
with the instructions of the Majority Lenders (or, if appropriate, the Lenders) until
it has received such security as it may require for any cost, loss or liability
(together with any associated VAT) which it may incur in complying with the
instructions.
	 
	 	(d)	 	In the absence of instructions from the Majority Lenders (or, if appropriate,
the Lenders), each of the Agent and the Security Agent may act (or refrain from taking
action) as it considers to be in the best interests of the Lenders.
	 
	 	(e)	 	Neither the Agent nor the Security Agent is authorised to act on behalf of a
Lender (without first obtaining that Lender’s consent) in any legal or arbitration
proceedings relating to any Finance Document.

	29.9	 	Responsibility for documentation
	 
	 	 	None of the Agent, the Security Agent or the Arranger:

	 	(a)	 	is responsible for the adequacy, accuracy and/or completeness of any
information (whether oral or written) supplied by the Agent, the Security Agent, the
Arranger, an Obligor or any other person given in or in connection with any Finance
Document; or
	 
	 	(b)	 	is responsible for the legality, validity, effectiveness, adequacy or
enforceability of any Finance Document or any other agreement, arrangement or document
entered into, made or executed in anticipation of or in connection with any Finance
Document.

	29.10	 	Exclusion of liability

	 	(a)	 	Without limiting clause 35.10(b) below, neither the Agent nor the Security
Agent will be liable for any action taken by it under or in connection with any Finance
Document, unless directly caused by its gross negligence or wilful misconduct.
	 
	 	(b)	 	No Party (other than the Agent or the Security Agent) may take any proceedings
against any officer, employee or agent of the Agent or the Security Agent in respect

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	 	 	 	of any claim it might have against the Agent or the Security Agent or in respect of
any act or omission of any kind by that officer, employee or agent in relation to
any Finance Document and any officer, employee or agent of the Agent or the Security
Agent may rely on this clause 35.

	 	(c)	 	Neither the Agent nor the Security Agent will be liable for any delay (or any
related consequences) in crediting an account with an amount required under the Finance
Documents to be paid by it if it has taken all necessary steps as soon as reasonably
practicable to comply with the regulations or operating procedures of any recognised
clearing or settlement system used by it for that purpose.
	 
	 	(d)	 	Nothing in this Agreement shall oblige the Agent or the Arranger to carry out
any “know your customer” or other checks in relation to any person on behalf of any
Lender and each Lender confirms to the Agent and the Arranger that it is solely
responsible for any such checks it is required to carry out and that it may not rely on
any statement in relation to such checks made by the Agent or the Arranger.

	29.11	 	Lenders’ indemnity to the Agent and the Security Agent
	 
	 	 	Each Lender shall (in proportion to its share of the Total Commitments or, if the Total
Commitments are then zero, to its share of the Total Commitments immediately prior to their
reduction to zero) indemnify the Agent and the Security Agent, within three Business Days of
demand, against any cost, loss or liability incurred by the Agent or the Security Agent
(otherwise than by reason of its gross negligence or wilful misconduct) in acting as Agent
or, as the case may be, Security Agent under the Finance Documents (unless it has been
reimbursed by an Obligor pursuant to a Finance Document).
	 
	29.12	 	Resignation of the Agent or the Security Agent

	 	(a)	 	The Agent or the Security Agent may resign and appoint one of its Affiliates as
successor by giving notice to the other Finance Parties and the Obligors’ Agent.
	 
	 	(b)	 	Alternatively the Agent or the Security Agent may resign by giving notice to
the other Finance Parties and the Obligors’ Agent, in which case the Majority Lenders
(after consultation with the Obligors’ Agent) may appoint a successor Agent or, as the
case may be, Security Agent.
	 
	 	(c)	 	If the Majority Lenders have not appointed a successor Agent or, as the case
may be, Security Agent in accordance with clause 35.12(b) above within 30 days after
notice of resignation was given, the Agent or, as the case may be, Security Agent
(after consultation with the Obligors’ Agent) may appoint a successor Agent or Security
Agent.
	 
	 	(d)	 	The retiring Agent or Security Agent shall, at its own cost, make available to
its successor such documents and records and provide such assistance as its successor
may reasonably request for the purposes of performing its functions as Agent or
Security Agent under the Finance Documents.
	 
	 	(e)	 	The resignation notice of the Agent or Security Agent shall only take effect
upon the appointment of a successor.
	 
	 	(f)	 	Upon the appointment of a successor, the retiring Agent or Security Agent shall
be discharged from any further obligation in respect of the Finance Documents but shall
remain entitled to the benefit of this clause 35. Its successor and each of the other
Parties shall have the same rights and obligations amongst themselves as they would
have had if such successor had been an original Party.

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	 	(g)	 	After consultation with the Obligors’ Agent, the Majority Lenders may, by
notice to the Agent or, as the case may be, the Security Agent, require it to resign in
accordance with clause 35.12(b) above. In this event, the Agent or, as the case may be,
the Security Agent shall resign in accordance with clause 35.12(b) above.

	29.13	 	Confidentiality

	 	(a)	 	The Agent (in acting as agent for the Finance Parties) and the Security Agent
(in acting as security agent or trustee for the Finance Parties) shall be regarded as
acting through its respective agency or security agency or trustee division which in
each case shall be treated as a separate entity from any other of its divisions or
departments.
	 
	 	(b)	 	If information is received by another division or department of the Agent or,
as the case may be, the Security Agent, it may be treated as confidential to that
division or department and the Agent or, as the case may be, the Security Agent shall
not be deemed to have notice of it.

	29.14	 	Relationship with the Lenders

	 	(a)	 	The Agent may treat each Lender as a Lender, entitled to payments under this
Agreement and acting through its Facility Office unless it has received not less than
five Business Days’ prior notice from that Lender to the contrary in accordance with
the terms of this Agreement.
	 
	 	(b)	 	Each Lender shall supply the Agent with any information required by the Agent
in order to calculate the Mandatory Cost in accordance with schedule 4 (Mandatory Cost
formulae).

	29.15	 	Credit appraisal by the Lenders
	 
	 	 	Without affecting the responsibility of any Obligor for information supplied by it or on its
behalf in connection with any Finance Document, each Lender confirms to the Agent, the
Security Agent and the Arranger that it has been, and will continue to be, solely
responsible for making its own independent appraisal and investigation of all risks arising
under or in connection with any Finance Document including but not limited to:

	 	(a)	 	the financial condition, status and nature of each member of the Group;
	 
	 	(b)	 	the legality, validity, effectiveness, adequacy or enforceability of any
Finance Document and any other agreement, Security, arrangement or document entered
into, made or executed in anticipation of, under or in connection with any Finance
Document;
	 
	 	(c)	 	whether that Lender has recourse, and the nature and extent of that recourse,
against any Party or any of its respective assets under or in connection with any
Finance Document, the transactions contemplated by the Finance Documents or any other
agreement, Security, arrangement or document entered into, made or executed in
anticipation of, under or in connection with any Finance Document; and
	 
	 	(d)	 	the adequacy, accuracy and/or completeness of any information provided by the
Agent, the Security Agent, any Party or by any other person under or in connection

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	 	 	 	with any Finance Document, the transactions contemplated by the Finance Documents or
any other agreement, Security, arrangement or document entered into, made or
executed in anticipation of, under or in connection with any Finance Document.

	29.16	 	Reference Banks
	 
	 	 	If a Reference Bank (or, if a Reference Bank is not a Lender, the Lender of which it is an
Affiliate) ceases to be a Lender, the Agent shall (in consultation with the Obligors’ Agent)
appoint another Lender or an Affiliate of a Lender to replace that Reference Bank.
	 
	29.17	 	Management time of the Agent and the Security Agent
	 
	 	 	Any amount payable to the Agent or the Security Agent under clause 24.3 (Indemnity to the
Agent and the Security Agent), clause 26 (Costs and expenses) and clause 35.11 (Lenders’
indemnity to the Agent and the Security Agent) shall include the cost of utilising its
management time or other resources (where such utilisation of its management time or other
resources is in excess of that which could reasonably be expected in the ordinary course of
managing the Facilities) and will be calculated on the basis of such reasonable daily or
hourly rates as it may notify to the Obligors’ Agent and the Lenders, and is in addition to
any fee paid or payable to it under clause 21 (Fees).
	 
	29.18	 	Security agency provisions
	 
	 	 	The provisions of schedule 7 (Security agency provisions) shall bind each Party.
	 
	29.19	 	Deduction from amounts payable by the Agent or the Security Agent
	 
	 	 	If any Party owes an amount to the Agent or the Security Agent under the Finance Documents,
the Agent or the Security Agent, as the case may be, may, after giving notice to that Party,
deduct an amount not exceeding that amount from any payment to that Party which the Agent or
the Security Agent, as the case may be, would otherwise be obliged to make under the Finance
Documents and apply the amount deducted in or towards satisfaction of the amount owed. For
the purposes of the Finance Documents that Party shall be regarded as having received any
amount so deducted.
	 
	30	 	Conduct of business by the Finance Parties
	 
	 	 	No provision of this Agreement will:

	 	(a)	 	interfere with the right of any Finance Party to arrange its affairs (tax or
otherwise) in whatever manner it thinks fit;
	 
	 	(b)	 	oblige any Finance Party to investigate or claim any credit, relief, remission
or repayment available to it or the extent, order and manner of any claim; or
	 
	 	(c)	 	oblige any Finance Party to disclose any information relating to its affairs
(tax or otherwise) or any computations in respect of Tax.

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	31	 	Sharing among the Finance Parties

	31.1	 	Payments to Finance Parties
	 
	 	 	If a Finance Party (a Recovering Finance Party) receives or recovers any amount from an
Obligor other than in accordance with clause 38 (Payment mechanics) and applies that amount
to a payment due under the Finance Documents then:

	 	(a)	 	the Recovering Finance Party shall, within three Business Days, notify details
of the receipt or recovery to the Agent;
	 
	 	(b)	 	the Agent shall determine whether the receipt or recovery is in excess of the
amount the Recovering Finance Party would have been paid had the receipt or recovery
been received or made by the Agent and distributed in accordance with clause 38
(Payment mechanics), without taking account of any Tax which would be imposed on the
Agent in relation to the receipt, recovery or distribution; and
	 
	 	(c)	 	the Recovering Finance Party shall, within three Business Days of demand by the
Agent, pay to the Agent an amount (the Sharing Payment) equal to such receipt or
recovery less any amount which the Agent determines may be retained by the Recovering
Finance Party as its share of any payment to be made, in accordance with clause 38.5
(partial payments).

	31.2	 	Redistribution of payments
	 
	 	 	The Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and
distribute it between the Finance Parties (other than the Recovering Finance Party) in
accordance with clause 38.5 (partial payments).
	 
	31.3	 	Recovering Finance Party’s rights

	 	(a)	 	On a distribution by the Agent under clause 31.2 (Redistribution of payments),
the Recovering Finance Party will be subrogated to the rights of the Finance Parties
which have shared in the redistribution.
	 
	 	(b)	 	If and to the extent that the Recovering Finance Party is not able to rely on
its rights under clause 37.3(a) above, the relevant Obligor shall be liable to the
Recovering Finance Party for a debt equal to the Sharing Payment which is immediately
due and payable.

	31.4	 	Reversal of redistribution
	 
	 	 	If any part of the Sharing Payment received or recovered by a Recovering Finance Party
becomes repayable and is repaid by that Recovering Finance Party, then:

	 	(a)	 	each Finance Party which has received a share of the relevant Sharing Payment
pursuant to clause 37.2 (Redistribution of payments) shall, upon request of the Agent,
pay to the Agent for the account of that Recovering Finance Party an amount equal to
the appropriate part of its share of the Sharing Payment (together with an amount as is
necessary to reimburse that Recovering Finance Party for its proportion of any interest
on the Sharing Payment which that Recovering Finance Party is required to pay); and

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	 	(b)	 	that Recovering Finance Party’s rights of subrogation in respect of any
reimbursement shall be cancelled and the relevant Obligor will be liable to the
reimbursing Finance Party for the amount so reimbursed.

	31.5	 	Exceptions

	 	(a)	 	This clause 37 shall not apply to the extent that the Recovering Finance Party
would not, after making any payment pursuant to this clause 37, have a valid and
enforceable claim against the relevant Obligor.
	 
	 	(b)	 	A Recovering Finance Party is not obliged to share with any other Finance Party
any amount which the Recovering Finance Party has received or recovered as a result of
taking legal or arbitration proceedings, if:

	 	(i)	 	it notified that other Finance Party of the legal or
arbitration proceedings; and
	 
	 	(ii)	 	that other Finance Party had an opportunity to participate in
those legal or arbitration proceedings but did not do so as soon as reasonably
practicable having received notice and did not take separate legal or
arbitration proceedings.

	32	 	Payment mechanics
	 
	32.1	 	Payments to the Agent

	 	(a)	 	On each date on which an Obligor or a Lender is required to make a payment
under a Finance Document, that Obligor (subject to clause 38.10 (Payments to the
Security Agent) or Lender shall make the same available to the Agent (unless a contrary
indication appears in a Finance Document) for value on the due date at the time and in
such funds specified by the Agent as being customary at the time for settlement of
transactions in the relevant currency in the place of payment.
	 
	 	(b)	 	Payment shall be made to such account in the principal financial centre of the
country of that currency (or, in relation to euro, in the principal financial centre in
a Participating Member State or London) with such bank as the Agent specifies.

	32.2	 	Distributions by the Agent
	 
	 	 	Each payment received by the Agent under the Finance Documents for another Party shall,
subject to clause 38.3 (Distributions to an Obligor), clause 38.4 (Clawback) and clause
38.10 (Payments to the Security Agent), be made available by the Agent as soon as
practicable after receipt to the Party entitled to receive payment in accordance with this
Agreement (in the case of a Lender, for the account of its Facility Office), to such account
as that Party may notify to the Agent by not less than five Business Days’ notice with a
bank in the principal financial centre of the country of that currency (or, in relation to
euro, in the principal financial centre of a Participating Member State or London).
	 
	32.3	 	Distributions to an Obligor
	 
	 	 	The Agent and the Security Agent may (with the consent of the Obligor or in accordance with
clause 39 (Set-off)) apply any amount received by it for that Obligor in or towards payment
(on the date and in the currency and funds of receipt) of any amount due from that Obligor
under the Finance Documents or in or towards purchase of any amount of any currency to be so
applied.

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	32.4	 	Clawback

	 	(a)	 	Where a sum is to be paid to the Agent or the Security Agent under the Finance
Documents for another Party, the Agent or, as the case may be, the Security Agent is
not obliged to pay that sum to that other Party (or to enter into or perform any
related exchange contract) until it has been able to establish to its satisfaction that
it has actually received that sum.
	 
	 	(b)	 	If the Agent or the Security Agent pays an amount to another Party and it
proves to be the case that it had not actually received that amount, then the Party to
whom that amount (or the proceeds of any related exchange contract) was paid shall on
demand refund the same to the Agent or, as the case may be, the Security Agent together
with interest on that amount from the date of payment to the date of receipt by the
Agent or, as the case may be, the Security Agent, calculated by it to reflect its cost
of funds.

	32.5	 	Partial payments

	 	(a)	 	If the Agent receives a payment that is insufficient to discharge all the
amounts then due and payable by an Obligor under the Finance Documents, the Agent shall
apply that payment towards the obligations of that Obligor under the Finance Documents
in the following order:

	 	(i)	 	first, in or towards payment pro rata of any unpaid fees, costs
and expenses of the Agent, the Security Agent, the Fronting Banks or the
Arranger under the Finance Documents;
	 
	 	(ii)	 	secondly, in or towards payment pro rata of:

	 	(A)	 	any accrued interest, fee or commission due but
unpaid under this Agreement; and
	 
	 	(B)	 	any periodical payments (not being payments as
a result of termination) due but unpaid to a Hedging Bank under a
Hedging Document;

	 	(iii)	 	thirdly, in or towards payment pro rata of:

	 	(A)	 	any principal due but unpaid under this
Agreement or any Ancillary Facility Document;
	 
	 	(B)	 	any amount due but unpaid under clause 13.4
(Claims under a Letter of Credit) and clause 13.5 (Indemnities) or any
equivalent provision of any Ancillary Facility Document; and
	 
	 	(C)	 	any payments as a result of termination due but
unpaid to a Hedging Bank under a Hedging Document; and

	 	(iv)	 	fourthly, in or towards payment pro rata of any other sum due
but unpaid under the Finance Documents or any Ancillary Facility Document,

provided that the Agent shall not make any such payments to any Ancillary Lender
prior to the Agent delivering a notice to the Borrowers pursuant to clause
32.17(a)(ii) or clause 32.17(a)(iv) (Acceleration) or any date on which the
Facilities are cancelled under clause 17.2 (Change of control).

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	 	(b)	 	The Agent shall, if so directed by the Majority Lenders, vary the order set out
in clauses 32.17(a)(ii) to clause 32.17(a)(iv) above.
	 
	 	(c)	 	Clauses 38.5(a) and 38.5(b) above will override any appropriation made by an
Obligor.

	32.6	 	No set-off by Obligors
	 
	 	 	All payments to be made by an Obligor under the Finance Documents shall be calculated and be
made without (and free and clear of any deduction for) set-off or counterclaim.

	32.7	 	Business Days

	 	(a)	 	Any payment which is due to be made on a day that is not a Business Day shall
be made on the next Business Day in the same calendar month (if there is one) or the
preceding Business Day (if there is not).
	 
	 	(b)	 	During any extension of the due date for payment of any principal or Unpaid Sum
under this Agreement interest is payable on the principal or Unpaid Sum at the rate
payable on the original due date.

	32.8	 	Currency of account

	 	(a)	 	Subject to clauses 38.8(b) to 38.8(e) below, the Base Currency is the currency
of account and payment for any sum due from an Obligor under any Finance Document.
	 
	 	(b)	 	A repayment of a Utilisation or Unpaid Sum or a part of a Utilisation or Unpaid
Sum shall be made in the currency in which that Utilisation or Unpaid Sum is
denominated on its due date.
	 
	 	(c)	 	Each payment of interest shall be made in the currency in which the sum in
respect of which the interest is payable was denominated when that interest accrued.
	 
	 	(d)	 	Each payment in respect of costs, expenses or Taxes shall be made in the
currency in which the costs, expenses or Taxes are incurred.
	 
	 	(e)	 	Any amount expressed to be payable in a currency other than the Base Currency
shall be paid in that other currency.

	32.9	 	Change of currency

	 	(a)	 	Unless otherwise prohibited by law, if more than one currency or currency unit
are at the same time recognised by the central bank of any country as the lawful
currency of that country, then:

	 	(i)	 	any reference in the Finance Documents to, and any obligations
arising under the Finance Documents in, the currency of that country shall be
translated into, or paid in, the currency or currency unit of that country
designated by the Agent (after consultation with the Obligors’ Agent); and
	 
	 	(ii)	 	any translation from one currency or currency unit to another
shall be at the official rate of exchange recognised by the central bank for
the conversion of that currency or currency unit into the other, rounded up or
down by the Agent (acting reasonably).

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	 	(b)	 	If a change in any currency of a country occurs, this Agreement will, to the
extent the Agent (acting reasonably and after consultation with the Obligors’ Agent)
specifies to be necessary, be amended to comply with any generally accepted conventions
and market practice in the Relevant Interbank Market and otherwise to reflect the
change in currency.

	32.10	 	Payments to the Security Agent
	 
	 	 	Notwithstanding any other provision of any Finance Document, at any time after any Security
created by or pursuant to any Security Document becomes enforceable, the Security Agent may
require:

	 	(a)	 	any Obligor to pay all sums due under any Finance Document; or
	 
	 	(b)	 	the Agent to pay all sums received or recovered from an Obligor under any
Finance Document,

in each case as the Security Agent may direct for application in accordance with the terms
of the Security Documents.

	32.11	 	Parallel Debt

	 	(a)	 	Each Obligor hereby irrevocably and unconditionally undertakes to pay to the
Security Agent amounts equal to any amounts owing from time to time by that Obligor to
any Finance Party under any Finance Document as and when those amounts are due.
	 
	 	(b)	 	Each Obligor and the Security Agent acknowledge that the obligations of each
Obligor under clause 38.11(a) above are several and are separate and independent from,
and shall not in any way limit or affect, the corresponding obligations of that Obligor
to any Finance Party under any Finance Document (its Corresponding Debt) nor shall the
amounts for which each Obligor is liable under clause 38.11(a) above (its Parallel
Debt) be limited or affected in any way by its Corresponding Debt provided that:

	 	(i)	 	the Parallel Debt of each Obligor shall be decreased to the
extent that its Corresponding Debt has been irrevocably paid or (in the case of
guarantee obligations) discharged;
	 
	 	(ii)	 	the Corresponding Debt of each Obligor shall be decreased to
the extent that its Parallel Debt has been irrevocably paid or (in the case of
guarantee obligations) discharged; and
	 
	 	(iii)	 	the amount of the Parallel Debt of an Obligor shall at all
times be equal to the amount of its Corresponding Debt.

	 	(c)	 	For the purpose of this clause 38.11, the Security Agent acts in its own name
and not as a trustee or agent, and its claims in respect of the Parallel Debt shall not
be held on trust. The Security granted under the Finance Documents to the Security
Agent to secure the Parallel Debt is granted to the Security Agent in its capacity as
creditor of the Parallel Debt and shall not be held on trust nor shall it be held by
the Security Agent as agent.

	 	(d)	 	All monies received or recovered by the Security Agent pursuant to this clause
38.11, and all amounts received or recovered by the Security Agent from or by the

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	 	 	 	enforcement of any Security granted to secure the Parallel Debt, shall be applied in
accordance with clause 38.5 (partial payments).

	 	(e)	 	Without limiting or affecting the Security Agent’s rights against the Obligors
(whether under this clause 38.11 or under any other provision of the Finance
Documents), each Obligor acknowledges that:

	 	(i)	 	nothing in this clause 38.11 shall impose any obligation on the
Security Agent to advance any sum to any Obligor or otherwise under any Finance
Document, except in its capacity as Lender; and
	 
	 	(ii)	 	for the purpose of any vote taken under any Finance Document,
the Security Agent shall not be regarded as having any participation or
commitment other than those which it has in its capacity as a Lender.

	33	 	Set-off
	 
	 	 	A Finance Party may set off any matured obligation due from an Obligor under the Finance
Documents (to the extent beneficially owned by that Finance Party) against any matured
obligation owed by that Finance Party to that Obligor, regardless of the place of payment,
booking branch or currency of either obligation. If the obligations are in different
currencies, the Finance Party may convert either obligation at a market rate of exchange in
its usual course of business for the purpose of the set-off.
	 
	34	 	Notices
	 
	34.1	 	Communications in writing
	 
	 	 	Any communication to be made under or in connection with the Finance Documents shall be made
in writing and, unless otherwise stated, may be made by fax or letter.
	 
	34.2	 	Addresses
	 
	 	 	The address and fax number (and the department or officer, if any, for whose attention the
communication is to be made) of each Party for any communication or document to be made or
delivered under or in connection with the Finance Documents is:

	 	(a)	 	in the case of the Obligors’ Agent, that identified with its name below;
	 
	 	(b)	 	in the case of each Lender, each Ancillary Lender or any other Original
Obligor, that notified in writing to the Agent on or prior to the date on which it
becomes a Party; and
	 
	 	(c)	 	in the case of the Agent, the Original Fronting Bank and the Security Agent,
that identified with its name below,

or any substitute address, fax number or department or officer as the Party may notify to
the Agent (or the Agent may notify to the other Parties, if a change is made by the Agent)
by not less than five Business Days’ notice.

	34.3	 	Delivery

	 	(a)	 	Any communication or document made or delivered by one person to another under
or in connection with the Finance Documents will only be effective:

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	 	(i)	 	if by way of fax, when received in legible form; or
	 
	 	(ii)	 	if by way of letter, when it has been left at the relevant
address or five Business Days after being deposited in the post postage prepaid
in an envelope addressed to it at that address,

and, if a particular department or officer is specified as part of its address details
provided under clause 40.2 (Addresses), if addressed to that department or officer.

	 	(b)	 	Any communication or document to be made or delivered to the Agent or the
Security Agent will be effective only when actually received by the Agent and then only
if it is expressly marked for the attention of the department or officer identified
with its signature below (or any substitute department or officer as it shall specify
for this purpose).
	 
	 	(c)	 	All notices from or to an Obligor shall be sent through the Agent.
	 
	 	(d)	 	Any communication or document made or delivered to the Obligors’ Agent in
accordance with this clause 40 will be deemed to have been made or delivered to each of
the Obligors.
	 
	 	(e)	 	All notices from the Agent to an Obligor (unless given through the Obligors’
Agent) shall be copied to the Obligors’ Agent, provided that, the failure of the Agent
to comply with this paragraph shall not invalidate the relevant notice nor shall the
Agent be liable to any Party for any such failure.

	34.4	 	Notification of address and fax number
	 
	 	 	Promptly upon receipt of notification of an address and fax number or change of address or
fax number pursuant to clause 40.2 (Addresses) or when changing its own address or fax
number, the Agent shall notify the other Parties.
	 
	34.5	 	Electronic communication

	 	(a)	 	Any communication to be made between the Agent and a Lender under or in
connection with the Finance Documents may be made by electronic mail or other
electronic means, if the Agent and the relevant Lender:

	 	(i)	 	agree that, unless and until notified to the contrary, this is
to be an accepted form of communication;
	 
	 	(ii)	 	notify each other in writing of their electronic mail address
and/or any other information required to enable the sending and receipt of
information by that means; and
	 
	 	(iii)	 	notify each other of any change to their address or any other
such information supplied by them.

	 	(b)	 	Any electronic communication made between the Agent and a Lender will be
effective only when actually received in readable form and in the case of any
electronic communication made by a Lender to the Agent only if it is addressed in such
a manner as the Agent shall specify for this purpose.

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	34.6	 	English language

	 	(a)	 	Any notice given under or in connection with any Finance Document must be in
English.
	 
	 	(b)	 	All other documents provided under or in connection with any Finance Document
must be:

	 	(i)	 	in English; or
	 
	 	(ii)	 	if not in English, and if so required by the Agent, accompanied
by a certified English translation and, in this case, the English translation
will prevail unless the document is a constitutional, statutory or other
official document or a Security Document.

	35	 	Calculations and certificates
	 
	35.1	 	Accounts
	 
	 	 	In any litigation or arbitration proceedings arising out of or in connection with a Finance
Document, the entries made in the accounts maintained by a Finance Party are prima facie
evidence of the matters to which they relate.
	 
	35.2	 	Certificates and determinations
	 
	 	 	Any certification or determination by a Finance Party of a rate or amount under any Finance
Document is, in the absence of manifest error, conclusive evidence of the matters to which
it relates.
	 
	35.3	 	Day count convention
	 
	 	 	Any interest, commission or fee accruing under a Finance Document will accrue from day to
day and is calculated on the basis of the actual number of days elapsed and a year of 360
days or, in any case where the practice in the Relevant Interbank Market differs, in
accordance with that market practice.
	 
	36	 	Partial invalidity
	 
	 	 	If, at any time, any provision of the Finance Documents is or becomes illegal, invalid or
unenforceable in any respect under any law of any jurisdiction, neither the legality,
validity or enforceability of the remaining provisions nor the legality, validity or
enforceability of such provision under the law of any other jurisdiction will in any way be
affected or impaired.
	 
	37	 	Remedies and waivers
	 
	 	 	No failure to exercise, nor any delay in exercising, on the part of any Finance Party, any
right or remedy under the Finance Documents shall operate as a waiver, nor shall any single
or partial exercise of any right or remedy prevent any further or other exercise or the
exercise of any other right or remedy. The rights and remedies provided in this Agreement
are cumulative and not exclusive of any rights or remedies provided by law.

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	38	 	Amendments and waivers

	38.1	 	Required consents

	 	(a)	 	Subject to clause 44.2 (Exceptions) and clause 44.1(c) below, any term of the
Finance Documents may be amended or waived only with the consent of the Majority
Lenders and the Obligors and any such amendment or waiver will be binding on all
Parties.
	 
	 	(b)	 	The Agent may effect, on behalf of any Finance Party, any amendment or waiver
permitted by this clause.
	 
	 	(c)	 	The Security Agent may on behalf of any Party (and is hereby authorised by each
Party to) release any Security created pursuant to any Security Document or any Charged
Assets to the extent necessary to effect a Permitted Reorganisation or a disposal
permitted by clause 31.5 (Disposals) or as provided in any Security Document.

	38.2	 	Exceptions

	 	(a)	 	An amendment or waiver that has the effect of changing or which relates to:

	 	(i)	 	the definition of Majority Lenders in clause 7.1 (Definitions);
	 
	 	(ii)	 	an extension to the date of payment of any amount under the
Finance Documents;
	 
	 	(iii)	 	a reduction in the Margin or a reduction in the amount of any
payment of principal, interest, fees or commission payable;
	 
	 	(iv)	 	an increase in or an extension of any Commitment;
	 
	 	(v)	 	a change to the Borrowers or Guarantors other than in
accordance with clause 34 (Changes to the Obligors);
	 
	 	(vi)	 	any provision which expressly requires the consent of all the
Lenders;
	 
	 	(vii)	 	clause 8.2 (Finance Parties’ rights and obligations), clause
33 (Changes to the Lenders), clause 37 (Sharing among the Finance Parties) or
this clause 44; or
	 
	 	(viii)	 	the release of any Security created pursuant to any Security Document or of
any Charged Assets (except as necessary to effect a Permitted Reorganisation or
in respect of Charged Assets which are to be disposed of by a disposal
permitted by clause 31.5 (Disposals) or as provided in any Security Document),

	 	 	 	shall not be made without the prior consent of all the Lenders.
	 
	 	(b)	 	An amendment or waiver which relates to the rights or obligations of the Agent,
the Security Agent, a Fronting Bank, the Arranger or an Ancillary Lender may not be
effected without the consent of the Agent, the Security Agent, that Fronting Bank or,
as the case may be, the Arranger.

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	 	(c)	 	Any amendment or waiver to any Hedging Document or this clause 44, to the
extent it affects the rights of a Hedging Bank, shall require the consent of the
relevant Hedging Bank.

	39	 	Counterparts
	 
	 	 	Each Finance Document may be executed in any number of counterparts, and this has the same
effect as if the signatures on the counterparts were on a single copy of the Finance
Document.
	 
	40	 	Governing law
	 
	 	 	This Agreement is governed by English law.
	 
	41	 	Enforcement
	 
	41.1	 	Jurisdiction

	 	(a)	 	The courts of England have exclusive jurisdiction to settle any dispute arising
out of or in connection with this Agreement (including a dispute regarding the
existence, validity or termination of this Agreement) (a Dispute).
	 
	 	(b)	 	The Parties agree that the courts of England are the most appropriate and
convenient courts to settle Disputes and accordingly no Party will argue to the
contrary.
	 
	 	(c)	 	This clause 47.1 is for the benefit of the Finance Parties only. As a result,
no Finance Party shall be prevented from taking proceedings relating to a Dispute in
any other courts with jurisdiction. To the extent allowed by law, the Finance Parties
may take concurrent proceedings in any number of jurisdictions.

	41.2	 	Service of process

	 	(a)	 	Without prejudice to any other mode of service allowed under any relevant law,
each Obligor (other than an Obligor incorporated in England and Wales) and the
Obligors’ Agent:

	 	(i)	 	irrevocably appoints Warwick International Group Limited as its
agent for service of process in relation to any proceedings before the English
courts in connection with any Finance Document; and
	 
	 	(ii)	 	agrees that failure by a process agent to notify the relevant
Obligor or the Obligors’ Agent of the process will not invalidate the
proceedings concerned.

	 	(b)	 	Warwick International Group Limited hereby accepts its appointment as agent for
service of process pursuant to clause 47.2(a) above.

Signed by the parties or their duly authorised representatives on the date of this Agreement.

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Schedule 1

The Original Parties

Part 1 — The Original Obligors

	 	 	 	 	 
	 	 	Jurisdiction of	 	Registration number
	Name of Original Borrower	 	incorporation	 	(or equivalent, if any)
	Warwick International Group Limited

	 	England
	 	2982784
	Chromalloy United Kingdom Limited

	 	England
	 	971349
	Chromalloy Holland B.V.

	 	The Netherlands
	 	1803091

	 	 	 	 	 
	 	 	Jurisdiction of	 	Registration number
	Name of Original Guarantor	 	incorporation	 	(or equivalent, if any)
	Sequa Corporation

	 	Delaware, USA
	 	Tax ID Number 13-885030
	Warwick International Group Limited

	 	England
	 	2982784
	Chromalloy United Kingdom Limited

	 	England
	 	971349
	Chromalloy Holland B.V.

	 	The Netherlands	 	1803091
	Sequa Limited

	 	England
	 	2982757
	Chromalloy Metal Tectonics Limited

	 	England
	 	1519807
	Chromalloy Gas Turbine Europa B.V.

	 	The Netherlands
	 	18019311
	Chromalloy (Thailand) Ltd.

	 	Thailand
	 	9768/2532
	Chromalloy Holding (Thailand) Ltd.

	 	Thailand
	 	0137 354811369

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Part 2 — The Original Lender

	 	 	 	 	 	 	 	 	 
	 	 	Facility A Commitment	 	Facility C Commitment
	Name of Original Lender	 	(U.S.$)	 	(U.S.$)
	HSBC Bank plc
	 	 	48,600,000	 	 	 	45,000,000	 

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Schedule 2

Conditions Precedent

Part 1 — Conditions Precedent to Initial Utilisation

	1	 	Original Obligors
	 
	1.1	 	A copy of the constitutional documents of the Obligors’ Agent and each Original Obligor.
	 
	1.2	 	A copy of a resolution of the board of directors or equivalent body of the Obligors’ Agent
and each Original Obligor and, in the case of each Original Obligor which is a Dutch Obligor,
a copy of a resolution of its shareholders:

	 	(a)	 	approving the terms of, and the transactions contemplated by, the Finance
Documents to which it is a party and resolving that it execute the Finance Documents to
which it is a party;
	 
	 	(b)	 	authorising a specified person or persons to execute the Finance Documents to
which it is a party on its behalf; and
	 
	 	(c)	 	authorising a specified person or persons, on its behalf, to sign and/or
despatch all documents and notices (including, if relevant, any Utilisation Request and
Selection Notice) to be signed and/or despatched by it under or in connection with the
Finance Documents to which it is a party.

	1.3	 	A specimen of the signature of each person authorised by the resolution referred to in
paragraph 1.2 above.

	1.4	 	A copy of a resolution signed by all the holders of the issued shares in each Original
Guarantor, approving the terms of, and the transactions contemplated by, the Finance Documents
to which the Original Guarantor is a party.

	1.5	 	A certificate of each Original Obligor (signed by a director or by the authorised director(s)
in the case of each Original Obligor incorporated in Thailand) confirming that borrowing or
guaranteeing, as appropriate, the Total Commitments would not cause any borrowing,
guaranteeing or similar limit binding on any Original Obligor to be exceeded.

	1.6	 	A certificate of an authorised signatory of the relevant Original Obligor and the Obligors’
Agent certifying that each copy document relating to it specified in this part 1 of schedule 2
is correct, complete and in full force and effect as at a date no earlier than the date of
this Agreement.

	1.7	 	In respect of any Dutch Obligor, a copy of the positive unconditional advice of any works
council (ondernemingsraad) that under the Works Council Act (Wet op de ondernemingsraden) has
the right to give advice in relation to the entry into and performance of the Finance
Documents, or a certificate from such Dutch Obligor confirming that no such works council
advice is required.

	1.8	 	In respect of any Dutch Obligor which has a supervisory board, a resolution of its
supervisory board approving the terms of, and the transactions contemplated by, the Finance
Documents to which it is a party.

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	2	 	Security
	 
	2.1	 	A copy of each of the following Security Documents, duly executed, delivered and perfected by
the Parties to it:

	 	(a)	 	Warwick International Group Limited an English law fixed and floating security
document.
	 
	 	(b)	 	Chromalloy United Kingdom Limited an English law fixed and floating security
document (excluding share Security over shares in TRT Limited, Turbine Services Limited
and Turbine Surface Technologies Limited).
	 
	 	(c)	 	Chromalloy Holland B.V.:

	 	(i)	 	Dutch law rights and receivables pledge (including Security
over rights under the Intra-Group Loan Agreements);
	 
	 	(ii)	 	Dutch law moveables pledge;
	 
	 	(iii)	 	Dutch law mortgage over real estate;
	 
	 	(iv)	 	Dutch law share pledge over shares in Jamo Precision Components B.V.; and
	 
	 	(v)	 	Dutch law bank account pledge.

	 	(d)	 	Sequa Limited an English law fixed and floating security document (including
share Security over shares in Warwick International Group Limited).
	 
	 	(e)	 	Chromalloy Metal Tectonics Limited English law fixed and floating security
document (including share Security over shares in Chromalloy United Kingdom Limited).
	 
	 	(f)	 	Chromalloy Gas Turbine Europa B.V.:

	 	(i)	 	English law share pledge over shares in Chromalloy Metal
Tectonics Limited;
	 
	 	(ii)	 	Dutch law share pledge over shares in Chromalloy Holland B.V.;
	 
	 	(iii)	 	Dutch law rights and receivables pledge;
	 
	 	(iv)	 	Dutch law moveables pledge;
	 
	 	(v)	 	Dutch law bank account pledge; and
	 
	 	(vi)	 	Thai law share pledge over shares in Chromalloy Holding
(Thailand) Ltd.
	 
	 	(vii)	 	Chromalloy Holding (Thailand) Ltd.: Thai law share pledge over
            shares in Chromalloy (Thailand) Ltd.

	2.2	 	The original share certificates (duly executed or endorsed where appropriate) (and in respect
of shares in any company incorporated in England and Wales, blank executed stock transfer
forms or equivalent means of transferring such shares) in relation to all shares over which
Security is expressed to be created by any Security Document governed by English or Thai law.

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	2.3	 	In relation to any Dutch law share pledge or any Thai law share pledge, a certified copy of
the shareholders’ register relating to the pledged shares.
	 
	2.4	 	Short form reports in relation to the Major UK Real Estate from Shoosmiths.
	 
	2.5	 	An undertaking from Shoosmiths addressed to the Security Agent in the Agreed Form.
	 
	2.6	 	Extracts from the land register evidencing a title in relation to each property subject to a
Dutch law mortgage.
	 
	2.7	 	An effective discharge of all existing Security (if any) affecting the Major UK Real Estate
and the Major Dutch Real Estate (including, without limitation, delivery to the Agent the
relevant forms DS1).
	 
	2.8	 	Notices of Charge or Assignment of Bank Accounts signed by each relevant Chargor all as
required by the relevant Security Document.
	 
	3	 	Legal opinions
	 
	3.1	 	A legal opinion of Linklaters, legal advisers to the Arranger, the Security Agent and the
Agent in England, substantially in the form distributed to the Original Lenders prior to
signing this Agreement.
	 
	3.2	 	If an Original Obligor or the Obligors’ Agent is incorporated in a jurisdiction other than
England and Wales, a legal opinion of the legal advisers to the Arranger, the Security Agent
and the Agent in the relevant jurisdiction, substantially in the form distributed to the
Original Lenders prior to signing this Agreement.
	 
	4	 	Reports
	 
	 	 	An original of:
	 
	4.1	 	the Accountants’ Report;
	 
	4.2	 	the Business Plan; and
	 
	4.3	 	the Tax Structure Report.
	 
	5	 	Financial information
	 
	 	 	Certified copies of:
	 
	5.1	 	the Original Financial Statements of each Original Obligor (other than Chromalloy Metal
Tectonics Limited);
	 
	5.2	 	historic pro-forma financials for each Original Obligor for the previous three years; and
	 
	5.3	 	the Funds Flow Memorandum.
	 
	6	 	Group Structure
	 
	 	 	A copy of the Group Structure Chart.

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	7	 	Other documents and evidence
	 
	7.1	 	Evidence that any process agent referred to in clause 47.2 (Service of process), if not an
Original Obligor, has accepted its appointment.
	 
	7.2	 	Evidence that the fees, costs and expenses then due from each Unit Parent pursuant to clause
21 (Fees), clause 22.5 (Stamp taxes) and clause 26 (Costs and expenses) have been paid or will
be paid by the first Utilisation Date which shall, in respect of Chromalloy (Thailand) Ltd.,
include stamp duties of (i) Baht 10,000 in respect of this Agreement, (ii) Baht 10 in respect
of the Guarantee and (iii) Baht 30 per Party in respect of each of the following appointments:
the Agent, the Security Agent and the Obligors’ Agent under this Agreement.
	 
	7.3	 	Evidence that each of the following has been duly executed by the parties to it:

	 	(a)	 	each Fee Letter; and
	 
	 	(b)	 	the Intra-Group Loan Agreements.

	7.4	 	Any clearance statement obtained from the Pensions Regulator (with all material details of
the supporting application).
	 
	7.5	 	A declaration from Willis of New York, Inc. confirming the insurances in place in respect of
the Group.
	 
	7.6	 	Deed of release in relation to any Security granted to secure the Existing HSBC Facility.
	 
	7.7	 	Release by HSBC of the obligations of Barclays Bank PLC from its obligations under the
Existing HSBC Facility.
	 
	7.8	 	Confirmation from each Lender that it has carried out and is satisfied it has complied with
all necessary “know your customer” or other similar checks under all applicable laws and
regulations pursuant to the transactions contemplated in the Finance Documents.

Part 2 — Conditions Precedent to be Delivered by an Additional Guarantor

	5	 	A Guarantor Accession Letter, duly executed by the Additional Guarantor.
	 
	6	 	A copy of the constitutional documents of the Additional Guarantor.
	 
	7	 	A copy of a resolution of the board of directors or equivalent body of the Additional
Guarantor and, in the case of each Additional Guarantor which is a Dutch Guarantor, a copy of
a resolution of its shareholders:

	 	(a)	 	approving the terms of, and the transactions contemplated by, the Guarantor
Accession Letter and the Finance Documents and resolving that it execute the Guarantor
Accession Letter;
	 
	 	(b)	 	authorising a specified person or persons to execute the Guarantor Accession
Letter on its behalf; and
	 
	 	(c)	 	authorising a specified person or persons, on its behalf, to sign and/or
despatch all other documents and notices to be signed and/or despatched by it under or
in connection with the Finance Documents.

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	8	 	A specimen of the signature of each person authorised by the resolution referred to in
paragraph 3 above.
	 
	9	 	If the Additional Guarantor is incorporated in England and Wales, or if so required by the
Agent, a copy of a resolution signed by all the holders of the issued shares of the Additional
Guarantor, approving the terms of, and the transactions contemplated by, the Finance Documents
to which the Additional Guarantor is a party.
	 
	10	 	A certificate of the Additional Guarantor (signed by a director) confirming that guaranteeing
the Total Commitments would not cause any guaranteeing or similar limit binding on it to be
exceeded.
	 
	11	 	A certificate of an authorised signatory of the Additional Guarantor certifying that each
copy document listed in this part 2 of schedule 2 is correct, complete and in full force and
effect as at a date no earlier than the date of the Guarantor Accession Letter.
	 
	12	 	In respect of any Dutch Obligor, a copy of the positive unconditional advice of any works
council (ondernemingsraad) that under the Works Council Act (Wet op de ondernemingsraden) has
the right to give advice in relation to the entry into and performance of the Finance
Documents, or a certificate from such Dutch Obligor confirming that no such works council
advice is required.
	 
	13	 	A copy of any other Authorisation or other document, opinion or assurance which the Agent
considers to be necessary in connection with the entry into and performance of the
transactions contemplated by the Guarantor Accession Letter or for the validity and
enforceability of any Finance Document.
	 
	14	 	If available, the latest audited financial statements of the Additional Guarantor.
	 
	15	 	A legal opinion of Linklaters, legal advisers to the Arranger, the Security Agent and the
Agent in England.
	 
	16	 	If the Additional Guarantor is incorporated in a jurisdiction other than England and Wales, a
legal opinion of the legal advisers to the Arranger, the Security Agent and the Agent in the
jurisdiction in which the Additional Guarantor is incorporated.
	 
	17	 	If the proposed Additional Guarantor is incorporated in a jurisdiction other than England and
Wales, evidence that the process agent specified in clause 47.2 (Service of process), if not
an Obligor, has accepted its appointment in relation to the proposed Additional Guarantor.
	 
	18	 	A copy of each Security Document creating such Security as the Majority Lenders require
(consistent with the scope and extent of the security package granted by the Original
Obligors), duly executed by the Additional Guarantor and the Security Agent (or, if
appropriate, the Finance Parties).
	 
	19	 	All documentation, and/or evidence of all other steps required to perfect those Security
Documents as advised to the Security Agent by its legal advisers in each relevant
jurisdiction.
	 
	20	 	A copy of the constitutional documents of the Additional Guarantor, if its shares are subject
to Security under any Security Document, in the form approved by the Agent, together with any
resolutions of the shareholders of the Additional Guarantor adopting such changes to the
constitutional documents of the Additional Guarantor as the Agent requires to, among other
things, remove any restriction on any transfer of shares or partnership interests (or

125

 

	 	  	equivalent) in the Additional Guarantor pursuant to any enforcement of any such Security
Document.
	 
	21	 	Confirmation from each Lender that it has carried out and is satisfied it has complied with
all necessary “know your customer” or other similar checks under all applicable laws and
regulations pursuant to the transactions contemplated in the Finance Documents.

126

 

Schedule 3

Requests

Part 1 — Utilisation Request

From:   [Name of relevant Borrower]

To:       HSBC Bank plc

Dated:

Dear Sirs

Warwick International Group Limited, Chromalloy United Kingdom Limited and Chromalloy Holland B.V.
- U.S.$93,600,000 Facility Agreement dated 21 December 2005 as amended by an amendment agreement
dated  ̈ 2007 (the “Agreement”)

	22	 	We refer to the Agreement. This is a Utilisation Request. Terms defined in the Agreement have
the same meaning in this Utilisation Request unless given a different meaning in this
Utilisation Request.
	 
	23	 	We wish to borrow a Loan on the following terms:

	 	 	 
	Proposed Utilisation Date:

	 	[           ] or, if that is not a Business Day, the next
Business Day
	 
	 	 
	Facility to be utilised:

	 	[Facility A]/[Facility C]*
	 
	 	 
	Currency of Loan:

	 	[           ]
	 
	 	 
	Amount:

	 	[           ] or, if less, the Available Facility
	 
	 	 
	Interest Period:

	 	[           ]

	24	 	We confirm that each condition specified in clause 10.2 (Further conditions precedent) is
satisfied on the date of this Utilisation Request.

	25	 	The proceeds of this Loan should be credited to [account].
	 
	26	 	This Utilisation Request is irrevocable.

Yours faithfully

                                       &
nbsp;

authorised signatory for

the Obligors’ Agent on behalf of

[name of relevant Borrower]

127

 

Part 2 — Selection Notice Applicable to a Facility Loan

From: [Name of relevant Borrower]

To:       HSBC Bank plc

Dated:

Dear Sirs

Warwick International Group Limited, Chromalloy United Kingdom Limited and Chromalloy Holland B.V.
- U.S.$93,600,000 Facility Agreement dated 21 December 2005 (as amended by an amendment agreement
dated  ̈ 2007 (the “Agreement”)

	27	 	We refer to the Agreement. This is a Selection Notice. Terms defined in the Agreement have
the same meaning in this Selection Notice unless given a different meaning in this Selection
Notice.
	 
	28	 	We refer to the following Facility A Loan in [identify currency] with an Interest Period
ending on [           ].1
	 
	29	 	We request that the above Facility A Loan be divided into [           ] Facility A
Loans with the following Base Currency Amounts and Interest Periods:2

or

We request that the next Interest Period for the above Facility A Loan[s] is [           ].3

	30	 	We request that the above Facility A Loan[s] [is][are] [denominated in the same currency for
the next Interest Period]/[denominated in the following currencies: [ ]].
As this results in a change of currency we confirm that each condition specified in clause
10.2 (Further conditions precedent) is satisfied on the date of this Selection Notice. The
proceeds of any change in currency should be credited to [account].

	31	 	This Selection Notice is irrevocable.

Yours faithfully

                                       &
nbsp;

authorised signatory for

the Obligors’ Agent on behalf of

[name of relevant Borrower]

 

			
	1	 	Insert details of all Facility A Loans in the
same currency which have an Interest Period ending on the same date.
	 
	2	 	Use this option if division of Loans is
requested.
	 
	3	 	Use this option if sub-division is not
required.

128

 

Part 3 — Utilisation Request Letter of Credit

From: [Name of relevant Borrower]

To:       HSBC Bank plc

Dated:

Dear Sirs

Warwick International Group Limited, Chromalloy United Kingdom Limited and Chromalloy Holland B.V.
- U.S.$93,600,000 Facility Agreement dated 21 December 2005 as amended by an amendment agreement
dated  ̈ 2007 (the “Agreement”)

	32	 	We refer to the Agreement. This is a Utilisation Request. Terms defined in the Agreement have
the same meaning in this Utilisation Request unless given a different meaning in this
Utilisation Request.

	33	 	We wish to arrange for a Letter of Credit to be issued on the following terms:

	 	 	 
	Proposed Utilisation Date:

	 	[            ] (or, if that is not a Business Day, the
next Business Day)
	 
	 	 
	Facility to be utilised:

	 	Facility C
	 
	 	 
	Currency of Letter of Credit

	 	[            ]
	 
	 	 
	Amount:

	 	[            ] or, if less, the Available Facility
	 
	 	 
	Beneficiary:

	 	[            ]
	 
	 	 
	Term or Expiry Date:

	 	[            ]

	34	 	We confirm that each condition specified in clause 12.6 (Issue of Letters of Credit) is
satisfied on the date of this Utilisation Request.

	35	 	We attach a copy of the proposed Letter of Credit.

	36	 	This Utilisation Request is irrevocable.
	 
	 	 	Delivery Instructions:
	 
	 	 	[specify delivery instructions]

Yours faithfully

                                       &
nbsp;

authorised
signatory for the Obligors’ Agent on behalf of

129

 

[Name of relevant Borrower]

Part 4 — Ancillary Facility Request

From: [Name of relevant Borrower]

To:       HSBC Bank plc

Dated:

Dear Sirs

Warwick International Group Limited, Chromalloy United Kingdom Limited and Chromalloy Holland B.V.
- U.S.$93,600,000 Facility Agreement dated 21 December 2005 as amended by an amendment agreement
dated  ̈ 2007 (the “Agreement”)

	37	 	We refer to the Agreement. This is an Ancillary Facility Request. Terms defined in the
Agreement have the same meaning in this Ancillary Facility Request unless given a different
meaning in this Ancillary Facility Request.

	38	 	We wish to establish an Ancillary Facility on the following terms:

	 	 	 
	Proposed Borrower:

	 	[            ]
	 
	 	 
	Proposed Ancillary Lender:

	 	[            ]
	 
	 	 
	Type or types of facility:

	 	[            ]
	 
	 	 
	Commencement Date:

	 	[            ]
	 
	 	 
	Expiry date:

	 	[            ]
	 
	 	 
	Ancillary Commitment amount:

	 	[            ]
	 
	 	 
	Currency/ies available:

	 	[            ]
	 
	 	 
	[Other details required by the Agent:]

	 	[            ]

	39	 	We confirm that each condition specified in clauses 15.4(a) and 15.4(b) (Grant of Ancillary
Facility) is satisfied on the date of this Ancillary Facility Request.

	40	 	This Ancillary Facility Request is irrevocable.

Yours faithfully

                                       &
nbsp;

authorised signatory for
the Obligors’ Agent on behalf of

130

 

[name of relevant Borrower]

Schedule 4

Mandatory Cost Formulae

	41	 	The Mandatory Cost is an addition to the interest rate to compensate Lenders for the cost of
compliance with (a) the requirements of the Bank of England and/or the Financial Services
Authority (or, in either case, any other authority which replaces all or any of its functions)
or (b) the requirements of the European Central Bank.
	 
	42	 	On the first day of each Interest Period (or as soon as possible thereafter) the Agent shall
calculate, as a percentage rate, a rate (the “Additional Cost Rate”) for each Lender, in
accordance with the paragraphs set out below. The Mandatory Cost will be calculated by the
Agent as a weighted average of the Lenders’ Additional Cost Rates (weighted in proportion to
the percentage participation of each Lender in the relevant Loan) and will be expressed as a
percentage rate per annum.
	 
	43	 	The Additional Cost Rate for any Lender lending from a Facility Office in a Participating
Member State will be the percentage notified by that Lender to the Agent. This percentage will
be certified by that Lender in its notice to the Agent to be its reasonable determination of
the cost (expressed as a percentage of that Lender’s participation in all Loans made from that
Facility Office) of complying with the minimum reserve requirements of the European Central
Bank in respect of loans made from that Facility Office.
	 
	44	 	The Additional Cost Rate for any Lender lending from a Facility Office in the United Kingdom
will be calculated by the Agent as follows:

	 	 	 	 	 	 	 
	 

	 	(a)
	 	in relation to a sterling Loan:
	 
	 	 	 	 		
	 

	 	 	 		 per cent per annum
	 
	 	 	 	 		
	 

	 	(b)
	 	in relation to a Loan in any currency other than sterling:
	 
	 	 	 	 		
	 

	 	 	 		per cent per annum

Where:

	 	 	 	 	 
	 

	 	A
	 	is the percentage of Eligible Liabilities (assuming these to be in excess of
any stated minimum) which that Lender is from time to time required to maintain as an
interest free cash ratio deposit with the Bank of England to comply with cash ratio
requirements.
	 
	 	 	 	 
	 

	 	B
	 	is the percentage rate of interest (excluding the Margin and the Mandatory Cost
and, if the Loan is an Unpaid Sum, the additional rate of interest specified in clause
18.3(a) (Default interest)) payable for the relevant Interest Period on the Loan.
	 
	 	 	 	 
	 

	 	C
	 	is the percentage (if any) of Eligible Liabilities which that Lender is
required from time to time to maintain as interest bearing Special Deposits with the
Bank of England.

131

 

	 	 	 	 	 
	 

	 	D
	 	is the percentage rate per annum payable by the Bank of England to the Agent on
interest bearing Special Deposits.
	 
	 	 	 	 
	 

	 	E
	 	is designed to compensate Lenders for amounts payable under the Fees Rules and
is calculated by the Agent as being the average of the most recent rates of charge
supplied by the Reference Banks to the Agent pursuant to paragraph 7 below and
expressed in pounds per £1,000,000.

	45	 	For the purposes of this Schedule:

	 	(a)	 	Eligible Liabilities and Special Deposits have the meanings given to them from
time to time under or pursuant to the Bank of England Act 1998 or (as may be
appropriate) by the Bank of England;
	 
	 	(b)	 	Fees Rules means the rules on periodic fees contained in the FSA Supervision
Manual or such other law or regulation as may be in force from time to time in respect
of the payment of fees for the acceptance of deposits;
	 
	 	(c)	 	Fee Tariffs means the fee tariffs specified in the Fees Rules under the
activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee
required pursuant to the Fees Rules but taking into account any applicable discount
rate); and
	 
	 	(d)	 	Tariff Base has the meaning given to it in, and will be calculated in
accordance with, the Fees Rules.

	46	 	In application of the above formulae, A, B, C and D will be included in the formulae as
percentages (i.e. 5 per cent will be included in the formula as 5 and not as 0.05). A
negative result obtained by subtracting D from B shall be taken as zero. The resulting
figures shall be rounded to four decimal places.
	 
	47	 	If requested by the Agent, each Reference Bank shall, as soon as practicable after
publication by the Financial Services Authority, supply to the Agent, the rate of charge
payable by that Reference Bank to the Financial Services Authority pursuant to the Fees Rules
in respect of the relevant financial year of the Financial Services Authority (calculated for
this purpose by that Reference Bank as being the average of the Fee Tariffs applicable to that
Reference Bank for that financial year) and expressed in pounds per £1,000,000 of the Tariff
Base of that Reference Bank.
	 
	48	 	Each Lender shall supply any information required by the Agent for the purpose of calculating
its Additional Cost Rate. In particular, but without limitation, each Lender shall supply the
following information on or prior to the date on which it becomes a Lender:

	 	(a)	 	the jurisdiction of its Facility Office; and
	 
	 	(b)	 	any other information that the Agent may reasonably require for such purpose.

Each Lender shall promptly notify the Agent of any change to the information provided by it
pursuant to this paragraph 8.

	49	 	The percentages of each Lender for the purpose of A and C above and the rates of charge of
each Reference Bank for the purpose of E above shall be determined by the Agent based upon the
information supplied to it pursuant to paragraphs 7 and 8 above and on the assumption that,
unless a Lender notifies the Agent to the contrary, each Lender’s obligations in relation to
cash ratio deposits and Special Deposits are the same as those of a typical bank

132

 

from its jurisdiction of incorporation with a Facility Office in the same jurisdiction as
its Facility Office.

	50	 	The Agent shall have no liability to any person if such determination results in an
Additional Cost Rate which over or under compensates any Lender and shall be entitled to
assume that the information provided by any Lender or Reference Bank pursuant to paragraphs 3,
7 and 8 above is true and correct in all respects.
	 
	51	 	The Agent shall distribute the additional amounts received as a result of the Mandatory Cost
to the Lenders on the basis of the Additional Cost Rate for each Lender based on the
information provided by each Lender and each Reference Bank pursuant to paragraphs 3, 7 and 8
above.
	 
	52	 	Any determination by the Agent pursuant to this schedule in relation to a formula, the
Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in the
absence of manifest error, be conclusive and binding on all Parties.
	 
	53	 	The Agent may from time to time, after consultation with the Obligors’ Agent and the Lenders,
determine and notify to all Parties any amendments which are required to be made to this
schedule in order to comply with any change in law, regulation or any requirements from time
to time imposed by the Bank of England, the Financial Services Authority or the European
Central Bank (or, in any case, any other authority which replaces all or any of its functions)
and any such determination shall, in the absence of manifest error, be conclusive and binding
on all Parties.

133

 

Schedule 5

Form of Transfer Certificate

	 	 	 
	To:

	 	HSBC Bank plc as Agent
	 
	 	 
	From:

	 	[                    ] (Existing Lender) and [                    ] (New Lender)
	 
	 	 
	Dated:
	 	 

Warwick International Group Limited, Chromalloy United Kingdom Limited and Chromalloy Holland B.V.
- U.S.$93,600,000 Facility Agreement dated 21 December 2005 as amended by an amendment agreement
dated  ̈ 2007 (the Agreement)

	54	 	We refer to the Agreement. This is a Transfer Certificate. Terms defined in the Agreement
have the same meaning in this Transfer Certificate unless given a different meaning in this
Transfer Certificate.

	55	 	We refer to clause 33.5 (Procedure for transfer):

	 	(a)	 	The Existing Lender and the New Lender agree to the Existing Lender
transferring to the New Lender by novation all or part of the Existing Lender’s
Commitment, rights and obligations referred to in the schedule in accordance with
clause 33.5 (Procedure for transfer).
	 
	 	(b)	 	The proposed Transfer Date is [                    ].
	 
	 	(c)	 	The Facility Office and address, fax number and attention details for notices
of the New Lender for the purposes of clause 40.2 (Addresses) are set out in the
schedule.

	56	 	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations
set out in clause 33.4(c) (Limitation of responsibility of Existing Lenders).
	 
	57	 	The New Lender (including, for the avoidance of doubt, the Lender replacing a Non-Consenting
Lender as referred to in clause 17.9 (Replacement of a Lender)) expressly acknowledges its
obligation set out in clause 31.22(a) (Professional Market Party).
	 
	58	 	[The New Lender confirms that the person beneficially entitled to interest payable to that
Lender in respect of an advance under a Finance Document is either:

	 	(a)	 	a company resident in the United Kingdom for United Kingdom tax purposes;
	 
	 	(b)	 	a partnership each member of which is:

	 	(i)	 	a company so resident in the United Kingdom; or
	 
	 	(ii)	 	a company not so resident in the United Kingdom which carries
on a trade in the United Kingdom through a permanent establishment and which
brings into account in computing its chargeable profits (for the purposes of
section 11(2) of the Taxes Act) the whole of any share of interest payable in
respect of that advance that falls to it by reason of sections 114 and 115 of
the Taxes Act; or
	 
	 	(iii)	 	a company not so resident in the United Kingdom which carries
on a trade in the United Kingdom through a permanent establishment and which
brings

134

 

	 	 	 	into account interest payable in respect of that advance in computing the
chargeable profits (for the purposes of section 11(2) of the Taxes Act) of
that company; or
	 
	 	(iv)	 	otherwise satisfies one of the conditions specified in sections
935 or 936 of the ITA.]

	59	 	This Transfer Certificate may be executed in any number of counterparts and this has the same
effect as if the signatures on the counterparts were on a single copy of this Transfer
Certificate.

	60	 	This Transfer Certificate is governed by English law.
	 
	 	 	[Note: Certain of the Thai Security is required to be re-registered following an assignment
or transfer.]
	 
	 	 	[Note: A New Lender must be a “professional market party” under the Dutch 1992 Banking Act
Exemption Regulation]

135

 

The Schedule

Commitment/Rights and Obligations to be Transferred

[insert relevant details]

[Facility Office address, fax number and attention details for notices and account details for
payments.]

	 	 	 
	[Existing Lender]

	 	[New Lender ]
	 
	 	 
	By:

	 	By:

This Transfer Certificate is accepted by the Agent and the Transfer Date is confirmed as [     
].

Barclays Bank PLC as Agent for and on behalf of the Obligors and the Finance Parties

By:

136

 

Schedule 6

Form of Guarantor or Borrower Accession Letter

	 	 	 
	To:

	 	HSBC Bank plc as Agent
	 
	 	 
	From:

	 	[Subsidiary]
	 
	 	 
	Dated:
	 	 

Dear Sirs

Warwick International Group Limited, Chromalloy United Kingdom Limited and Chromalloy Holland B.V.
- U.S.$93,600,000 Facility Agreement dated 21 December 2005 as amended by an amendment agreement
dated  ̈ 2007 (the “Agreement”)

	61	 	We refer to the Agreement. This is a [Guarantor] [Borrower] Accession Letter. Terms defined
in the Agreement have the same meaning in this [Guarantor] [Borrower] Accession Letter unless
given a different meaning in this [Guarantor] [Borrower] Accession Letter.
	 
	62	 	[Subsidiary] agrees to become an [Additional Guarantor] [Additional Borrower] and to be bound
by the terms of the Agreement as an [Additional Guarantor pursuant to clause 34.2 (Additional
Guarantors)] [Additional Borrower pursuant to clause 28.2A (Additional Borrowers)] of the
Agreement.
	 
	63	 	[Subsidiary] is a company duly incorporated under the laws of [name of relevant
jurisdiction].
	 
	 	 	[Insert the following limitation wording if Subsidiary is incorporated in The Netherlands:]
[The guarantee of [Subsidiary] is subject to those limitations set out in clause 27.10
(Limitations) of the Agreement, in relation to [Subsidiary].
	 
	 	 	[Insert alternative guarantee limitation wording for relevant jurisdiction if required under
the laws of the jurisdiction of incorporation of Subsidiary]
	 
	64	 	[Subsidiary]’s administrative details are as follows:
	 
	 	 	Address:
	 
	 	 	Fax No:
	 
	 	 	Attention:
	 
	65	 	This [Guarantor] [Borrower] Accession Letter is governed by English law.
	 
	 	 	This [Guarantor] [Borrower] Accession Letter is entered into by deed.

Obligors’ Agent [Subsidiary]

137

 

Schedule 7

Security Agency Provisions

	1	 	Definitions
	 
	 	 	In this schedule:
	 
	 	 	Security Property means all right, title and interest in, to and under any Security
Document, including:

	 	(a)	 	the Charged Assets;
	 
	 	(b)	 	the benefit of the undertakings in any Security Document; and
	 
	 	(c)	 	all sums received or recovered by the Security Agent pursuant to any Security
Document and any assets representing the same.

	2	 	Declaration of trust

	 	(a)	 	The Security Agent and each other Finance Party agree that the Security Agent
shall hold the Security Property in trust for the benefit of the Finance Parties on the
terms of the Finance Documents.
	 
	 	(b)	 	Subject to paragraph (c) below, paragraph (a) above shall not apply to any
Security Document which is expressed to be or is construed to be governed by any law
other than English law or any other law from time to time designated by the Security
Agent and an Obligor or any Security Property arising under any such Security Document.
	 
	 	(c)	 	Paragraph (b) above shall not affect or limit clause 38.11(d) (Parallel Debt)
nor the applicability of the provisions of this schedule 6 with respect to any Security
Document which is expressed to be or is construed to be governed by any law other than
English law or any other law from time to time designated by the Security Agent and an
Obligor or any Security Property arising under any such Security Document.

	3	 	Defects in Security

The Security Agent shall not be liable for any failure or omission to perfect, or defect in
perfecting, the Security created pursuant to any Security Document, including:

	 	(a)	 	failure to obtain any Authorisation for the execution, validity, enforceability
or admissibility in evidence of any Security Document; or
	 
	 	(b)	 	failure to effect or procure registration of or otherwise protect or perfect
any of the Security created by the Security Documents under any laws in any territory.

	4	 	No enquiry

The Security Agent may accept without enquiry, requisition, objection or investigation such
title as any Obligor may have to any Charged Assets.

138

 

	5	 	Retention of documents
	 
	 	 	The Security Agent may hold title deeds and other documents relating to any of the Charged
Assets in such manner as it sees fit (including appointing a third party to hold or allowing
any Obligor to retain them).
	 
	6	 	Indemnity out of Security Property
	 
	 	 	The Security Agent and every receiver, delegate, attorney, agent or other similar person
appointed under any Security Document may indemnify itself out of the Security Property
against any cost, loss or liability incurred by it in that capacity (otherwise than by
reason of its own gross negligence or wilful misconduct).
	 
	7	 	Basis of distribution
	 
	 	 	To enable it to make any distribution, the Security Agent may fix a date as at which the
amount of the Liabilities is to be calculated and may require, and rely on, a certificate
from any Finance Party giving details of:

	 	(a)	 	any sums due or owing to any Finance Party as at that date; and
	 
	 	(b)	 	such other matters as it thinks fit.

	8	 	Rights of Security Agent
	 
	 	 	The Security Agent shall have all the rights, privileges and immunities which gratuitous
trustees have or may have in England, even though it is entitled to remuneration.
	 
	9	 	No duty to collect payments
	 
	 	 	The Security Agent shall not have any duty:

	 	(a)	 	to ensure that any payment or other financial benefit in respect of any of the
Charged Assets is duly and punctually paid, received or collected; or
	 
	 	(b)	 	to ensure the taking up of any (or any offer of any) stocks, shares, rights,
moneys or other property accruing or offered at any time by way of interest, dividend,
redemption, bonus, rights, preference, option, warrant or otherwise in respect of any
of the Charged Assets.

	10	 	Perpetuity period
	 
	 	 	The perpetuity period for the trusts created by the Finance Documents shall be 80 years from
the date of this Agreement.
	 
	11	 	Appropriation

	 	(a)	 	Each Party irrevocably waives any right to appropriate any payment to, or other
sum received, recovered or held by, the Security Agent in or towards payment of any
particular part of the Liabilities and agrees that the Security Agent shall have the
exclusive right to do so.
	 
	 	(b)	 	Paragraph (a) above will override any application made or purported to be made
by any other person.

139

 

	12	 	Investments
	 
	 	 	All money received or held by the Security Agent under the Finance Documents may, in the
name of, or under the control of, the Security Agent:

	 	(a)	 	be invested in any investment it may select; or
	 
	 	(b)	 	be deposited at such bank or institution (including itself, any other Finance
Party or any Affiliate of any Finance Party) as it thinks fit.

	13	 	Suspense Account
	 
	 	 	Subject to paragraph 14 below the Security Agent may:

	 	(a)	 	hold in an interest-bearing suspense account any money received by it from any
Obligor; and
	 
	 	(b)	 	invest an amount equal to the balance from time to time standing to the credit
of that suspense account in any of the investments authorised by paragraph 12 above.

	14	 	Timing of Distributions
	 
	 	 	Distributions by the Security Agent shall be made as and when determined by it.
15 Delegation

	 	(a)	 	The Security Agent may:

	 	(i)	 	employ and pay an agent selected by it to transact or conduct
any business and to do all acts required to be done by it (including the
receipt and payment of money);
	 
	 	(ii)	 	(delegate to any person on any terms (including power to
sub-delegate) all or any of its functions; and
	 
	 	(iii)	 	with the prior consent of the Majority Lenders, appoint, on
such terms as it may determine, or remove, any person to act either as separate
or joint security agent with those rights and obligations vested in the
Security Agent by this Agreement or any Security Document.

	 	(b)	 	The Security Agent will not be:

	 	(i)	 	responsible to anyone for any misconduct or omission by any
agent, delegate or security agent appointed by it pursuant to paragraph (a)
above; or
	 
	 	(ii)	 	bound to supervise the proceedings or acts of any such agent,
delegate or security agent,

provided that it exercises reasonable care in selecting that agent, delegate or
security agent.

140

 

	16	 	Unwinding
	 
	 	 	Any appropriation or distribution which later transpires to have been or is agreed by the
Security Agent to have been invalid or which has to be refunded shall be refunded and shall
be deemed never to have been made.
	 
	17	 	Lenders
	 
	 	 	The Security Agent shall be entitled to assume that each Lender is a Lender unless notified
by the Agent to the contrary.

141

 

Schedule 8

Form of Compliance Certificate

	 	 	 
	To:

	 	HSBC Bank plc as Agent
	 
	 	 
	From:

	 	Sequa Corporation as Obligors’ Agent
	 
	 	 
	Dated:
	 	 

Dear Sirs

Warwick International Group Limited, Chromalloy United Kingdom Limited and Chromalloy Holland B.V.
- U.S.$93,600,000 Facility Agreement dated 21 December 2005 as amended by an amendment agreement
dated  ̈ 2007 (the Agreement)

We refer to the Agreement. This is a Compliance Certificate. Terms defined in the Agreement have
the same meaning in this Compliance Certificate unless given a different meaning in this Compliance
Certificate.

	66	 	[We confirm that no Default is continuing.]4
	 
	67	 	We confirm that:

	 	(a)	 	the ratio of Net Borrowings to EBITDA for the Relevant Period ended on [      
] was [       ]:1 as at that date;
	 
	 	(b)	 	the ratio of EBITDA to Interest Expense for the Relevant Period ended on [      
] was [      ]:1;
	 
	 	(c)	 	the ratio of Cash Flow to Senior Debt Service for the Relevant Period ended on
[       ] was [       ]:1; and
	 
	 	(d)	 	the ratio of Cash Flow to Total Debt Service for the Relevant Period ended on [     
] was [      ]:1.

	68	 	[We confirm that the Material Subsidiaries are: [List Material Subsidiaries]. Set out
[below] are the calculations we have used for determining which members of the Group are
Material Subsidiaries.] [Paragraph 3 to be included for Compliance Certificates supplied with
each set of financial statements delivered pursuant to clause 29.1(a) (Annual financial
statements)]

     Signed:
              [Senior Vice President, Finance of Sequa Corporation]/[Vice President and
Treasurer of Sequa Corporation]

     Signed:               [Officer of Sequa Corporation]

 

			
	4	 	If this statement cannot be made, the
certificate should identify any Default that is continuing and the steps, if
any, being taken to remedy it.

142

 

Schedule 9

Existing Security

	 	 	 
	Name of Member of Group

	 	Security
	 
	 	 
	Chromalloy (Thailand) Ltd

	        	Security in favour of Bangkok Bank over a deposit of Baht 32,000,000

143

 

Schedule 10

Timetables

Part 1 — Loans

“D —  “ refers to the number of Business Days before the relevant Utilisation Date/the first day
of the relevant Interest Period.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Loans in other
	 	 	Loans in euro	 	Loans in sterling	 	currencies
	Request for
approval as an
Optional Currency,
if required (clause
10.3 (Conditions
relating to
Optional
Currencies))

	 	D – 5

10:00 a.m.
	 	D – 3

10:00 a.m.
	 	D – 5

10:00 a.m.
	 
	 	 	 	 	 	 
	Agent notifies the
Lenders of the
request (Clause
10.3 (Conditions
relating to
Optional
Currencies))

	 	D – 5

3:00 p.m.
	 	D – 3

3:00 p.m.
	 	D – 5

3:00 p.m.
	 
	 	 	 	 	 	 
	Responses by
Lenders to the
request (clause
10.3 (Conditions
relating to
Optional
Currencies)

	 	D – 4

1:00 p.m.
	 	D – 2

1:00 p.m.
	 	D – 4

1:00 p.m.
	 
	 	 	 	 	 	 
	Agent notifies the
Obligors’ Agent if
a currency is
approved as an
Optional Currency
in accordance with
clause 10.3
(Conditions
relating to
Optional
Currencies)

	 	D – 4

5:00 p.m.
	 	D – 2

5:00 p.m.
	 	D – 4

5:00 p.m.
	 
	 	 	 	 	 	 
	Delivery of a duly
completed
Utilisation Request
(clause 11.1
(Delivery of a
Utilisation
Request)) or a
Selection Notice
(clause 19.1
(Selection of
Interest Periods))

	 	D — 310:00 a.m.
	 	D — 110:00 a.m.
	 	D — 310:00 a.m.
	 
	 	 	 	 	 	 
	Agent determines
(in relation to a
Utilisation) the
Base Currency
Amount of the Loan,
if required under
clause 11.4
(Lenders’
participation) and
notifies the
Lenders of the Loan
in accordance with
clause 11.4
(Lenders’
participation)

	 	D – 3

11:00 a.m.
	 	D – 1

11:00 a.m.
	 	D – 3

11:00 a.m.
	 
	 	 	 	 	 	 
	Agent determines
amount of the
Facility A Loan in
Optional Currency
in accordance with
clause 14.3 (Change
of currency)

	 	D – 3

11:00 a.m.
	 	D – 1

11:00 a.m.
	 	D – 3

11:00 a.m.
	 
	 	 	 	 	 	 
	Agent determines
amount of the
Facility A Loan in
Optional Currency
in accordance with
clause 14.4(a)
(Same Optional
Currency during
successive Interest
Periods)

	 	D – 3

11:00 a.m.
	 	D – 1

11:00 a.m.
	 	D – 3

11:00 a.m.

144

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Loans in other
	 	 	Loans in euro	 	Loans in sterling	 	currencies
	LIBOR is fixed

	 	Quotation Day as of
11:00 a.m.
(Brussels time)
	 	Quotation Day as of
11:00 a.m.
	 	Quotation Day as of
11:00 a.m.
	 
	 	 	 	 	 	 
	Agent receives a
notification from a
Lender under clause
14.2
(Unavailability of
a currency)

	 	Quotation Day

3:00 p.m.
	 	Quotation Day

3:00 p.m.
	 	Quotation Day

3:00 p.m.
	 
	 	 	 	 	 	 
	Agent gives notice
in accordance with
clause 14.2
(Unavailability of
a currency)

	 	Quotation Day

5:00 p.m.
	 	Quotation Day

5:00 p.m.
	 	Quotation Day

5:00 p.m.

Part 2 — Letters of Credit

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Loans in other
	 	 	Loans in euro	 	Loans in sterling	 	currencies
	Request for
approval as an
Optional Currency,
if required (clause
4.3 (Conditions
relating to
Optional
Currencies))

	 	D – 5

10:00 a.m.
	 	D – 3

10:00 a.m.
	 	D – 5

10:00 a.m.
	 
	 	 	 	 	 	 
	Agent notifies the
Lenders of the
request (clause
10.3 (Conditions
relating to
Optional
Currencies))

	 	D – 5

3:00 p.m.
	 	D – 3

3:00 p.m.
	 	D – 5

3:00 p.m.
	 
	 	 	 	 	 	 
	Responses by
Lenders to the
request (clause
10.3 (Conditions
relating to
Optional
Currencies)

	 	D – 4

1:00 p.m.
	 	D – 2

1:00 p.m.
	 	D – 4

1:00 p.m.
	 
	 	 	 	 	 	 
	Agent notifies
Obligors’ Agent if
a currency is
approved as an
Optional Currency
in accordance with
clause 10.3
(Conditions
relating to
Optional
Currencies)

	 	D – 4

5:00 p.m.
	 	D – 2

5:00 p.m.
	 	D – 4

5:00 p.m.
	 
	 	 	 	 	 	 
	Delivery of a duly
completed
Utilisation Request
(clause 11.1
(Delivery of a
Utilisation
Request))

	 	D – 3

10:00 a.m.
	 	D – 1

10:00 a.m.
	 	D – 3

10:00 a.m.
	 
	 	 	 	 	 	 
	Agent determines
(in relation to a
Utilisation) the
Base Currency
Amount of the
Letter of Credit,
if required under
clause 12.6 (Issue
of Letters of
Credit) and
notifies the
Lenders of the
Letter of Credit in
accordance with
clause 12.6 (Issue
of Letters of
Credit)

	 	D – 3

11:00 a.m.
	 	D – 1

11:00 a.m.
	 	D – 3

11:00 a.m.
	 
	 	 	 	 	 	 
	Delivery of a duly
completed Renewal
Request (clause
12.7 (Renewal of a
Letter of Credit)).

	 	D – 3

10:00 a.m.
	 	D – 1

10:00 a.m.
	 	D – 3

10:00 a.m.

145

 

Schedule 11

Letters of Credit

			
	To:	 	[Beneficiary]

(the Beneficiary)

[Date]

Irrevocable Standby Letter of Credit no.

At the request of [name of Sequa Corporation or any of its Subsidiaries], [name of Issuing Bank]
(the “Issuing Bank”) issues this irrevocable standby letter of credit (“Letter of Credit”) in your
favour on the following terms and conditions:

	69	 	Definitions
	 
	 	 	In this Letter of Credit:
	 
	 	 	Business Day means a day (other than a Saturday or a Sunday) on which banks are open for
general business in London and New York.
	 
	 	 	Demand means a demand for a payment under this Letter of Credit in the form of the Schedule
to this Letter of Credit.
	 
	 	 	Expiry Date means [            ].
	 
	 	 	Total L/C Amount means [           ].
	 
	70	 	Issuing Bank’s agreement

	 	(a)	 	The Beneficiary may request a drawing or drawings under this Letter of Credit
by giving to the Issuing Bank a duly completed Demand. A Demand must be received by
the Issuing Bank by [      ] (London time) on the Expiry Date.
	 
	 	(b)	 	Subject to the terms of this Letter of Credit, the Issuing Bank unconditionally
and irrevocably undertakes to the Beneficiary that, within [      ]
Business Days of receipt by it of a Demand, it must pay to the Beneficiary the amount
demanded in that Demand.
	 
	 	(c)	 	The Issuing Bank will not be obliged to make a payment under this Letter of
Credit if as a result the aggregate of all payments made by it under this Letter of
Credit would exceed the Total L/C Amount.

	71	 	Expiry

	 	(a)	 	The Issuing Bank will be released from its obligations under this Letter of
Credit on the date (if any) notified by the Beneficiary to the Issuing Bank as the date
upon which the obligations of the Issuing Bank under this Letter of Credit are
released.
	 
	 	(b)	 	Unless previously released under paragraph (a) above, on [      ]
(London time) on the Expiry Date the obligations of the Issuing Bank under this Letter
of Credit

146

 

	 	 	 	will cease with no further liability on the part of the Issuing Bank except for any
Demand validly presented under the Letter of Credit that remains unpaid.
	 
	 	(c)	 	When the Issuing Bank is no longer under any further obligations under this
Letter of Credit, the Beneficiary must return the original of this Letter of Credit to
the Issuing Bank.

	72	 	Payments
	 
	 	 	All payments under this Letter of Credit shall be made in the Base Currency or an Optional
Currency and for value on the due date to the account of the Beneficiary specified in the
Demand.
	 
	73	 	Delivery of Demand
	 
	 	 	Each Demand shall be in writing, and, unless otherwise stated, may be made by letter or fax
and must be received in legible form by the Issuing Bank at its address and by the
particular department or officer (if any) as follows:

[           ]

[           ]

	74	 	Assignment
	 
	 	 	The Beneficiary’s rights under this Letter of Credit may not be assigned or transferred.
	 
	75	 	ISP 98
	 
	 	 	Except to the extent it is inconsistent with the express terms of this Letter of Credit,
this Letter of Credit is subject to the International Standby Practices (ISP 98),
International Chamber of Commerce Publication No. 590.
	 
	76	 	Governing Law
	 
	 	 	This Letter of Credit is governed by English law.
	 
	77	 	Jurisdiction
	 
	 	 	The courts of England have exclusive jurisdiction to settle any dispute arising out of or in
connection with this Letter of Credit.

Yours faithfully,

[name of Issuing Bank]

By:

147

 

Schedule 12

To Letter of Credit Form of Demand

To: [Name of Issuing Bank]

[Date]

Dear Sirs

Standby Letter of Credit no. [           ] issued in favour of [BENEFICIARY] (the Letter of
Credit)

We refer to the Letter of Credit. Terms defined in the Letter of Credit have the same meaning when
used in this Demand.

	78	 	We certify that the sum of [          ] is due and has remained unpaid for at least
[           ] Business Days [under [set out underlying contract or agreement]]. We
therefore demand payment of the sum of [           ].
	 
	79	 	Payment should be made to the following account:

Name:

Account Number:

Bank:

	80	 	The date of this Demand is not later than the Expiry Date.

Yours faithfully

(Authorised Signatory)                     (Authorised Signatory)

For

[BENEFICIARY]

148

 

Schedule 13

Form of Hedging Bank Accession Letter

	 	 	 
	To:

	 	HSBC Bank plc as Security Agent
	 
	 	 
	From:

	 	[Proposed Hedging Bank]
	 
	 	 
	Dated:
	 	 

Dear Sirs

Warwick International Group Limited, Chromalloy United Kingdom Limited and Chromalloy Holland B.V.
- U.S.$93,600,000 Facility Agreement dated 21 December 2005 as amended by an amendment agreement
dated  ̈ 2007 (the Agreement)

	81	 	We refer to the Agreement. This is a Hedging Bank Accession Letter. Terms defined in the
Agreement have the same meaning in this Hedging Bank Accession Letter unless given a different
meaning in this Accession Letter.
	 
	82	 	[Proposed Hedging Bank] agrees to become a Hedging Bank and to be bound by the terms of the
Agreement as a Hedging Bank pursuant to clause 33.8 (Hedging Banks) of the Agreement.
[Proposed Hedging Bank] is [a/an] [Lender/Affiliate of a Lender].
	 
	83	 	[Proposed Hedging Bank]’s administrative details are as follows:
	 
	 	 	Address:
	 
	 	 	Fax No:
	 
	 	 	Attention:
	 
	84	 	Details of the Hedging Document are as follows:
	 
	 	 	Date:
	 
	 	 	Parties: [Proposed Hedging Bank] and [Obligor]
	 
	 	 	Terms: [Insert brief summary of type of contract]
	 
	85	 	This letter is governed by English law.

[Proposed Hedging Bank]

By:

This Hedging Bank Accession Letter is accepted by HSBC Bank plc in its capacity as Security Agent.

By:

Date:

149

 

Schedule 14

Form of Fronting Bank Accession Letter

			
	To:	 	HSBC Bank plc as Agent

			
	From:	 	[Proposed Fronting Bank]

			
	Dated:	 	

Dear Sirs

Warwick International Group Limited, Chromalloy United Kingdom Limited and Chromalloy Holland B.V.
- U.S.$93,600,000 Facility Agreement dated 21 December 2005 as amended by an amendment agreement
dated  ̈ 2007 (the Agreement)

	86	 	We refer to the Agreement. This is a Fronting Bank Accession Letter. Terms defined in the
Agreement have the same meaning in this Fronting Bank Accession Letter unless given a
different meaning in this Fronting Bank Accession Letter.
	 
	87	 	[Proposed Fronting Bank] agrees to become a Fronting Bank and to be bound by the terms of the
Agreement as a Fronting Bank pursuant to clause 33.9 (Fronting Banks) of the Agreement.
[Proposed Fronting Bank] is a Lender.
	 
	88	 	[Proposed Fronting Bank]’s administrative details are as follows:

Address:

Fax No:

Attention:

	89	 	This letter is governed by English law.

[Proposed Fronting Bank]

By:

This Fronting Bank Accession Letter is accepted by HSBC Bank plc in its capacity as Agent.

By:

Date:

[Note: Fronting Bank fees should be agreed prior to accession.]

150

 

Schedule 15

Form of Resignation Letter

			
	To:	 	HSBC Bank plc as Agent

			
	From:	 	[resigning Guarantor] [resigning Borrower]

			
	Dated:	 	

Dear Sirs

Warwick International Group Limited, Chromalloy United Kingdom Limited and Chromalloy Holland B.V.
- U.S.$93,600,000 Facility Agreement dated 21 December 2005 as amended by an amendment agreement
dated  ̈ 2007 (the Agreement)

	90	 	We refer to the Agreement. This is a Resignation Letter. Terms defined in the Agreement have
the same meaning in this Resignation Letter unless given a different meaning in this
Resignation Letter.
	 
	91	 	Pursuant to [clause 34.4 (Resignation of a Guarantor)] [clause 28.2B (Resignation of a
Borrower)], we request that [resigning Obligor] be released from its obligations as a
[Guarantor] [Borrower] under the Agreement.
	 
	92	 	We confirm that:

	 	(a)	 	no Default is continuing or would result from the acceptance of this request;
and
	 
	 	(b)	 	[           ].

	93	 	This Resignation Letter is governed by English law.
	 
	 	 	[Resigning Guarantor] [Resigning Borrower]
	 
	 	 	By:

151

 

Schedule 16

Existing Letters of Credit

	 	 	 	 	 	 	 	 	 
	LOC #	 	Applicant	 	Currency	 	    Amount	 	Issuing Bank
	1
	 	Sequa GMBH	 	EUR	 	1,000,000	 	HSBC UK
	 
	 	 	 	 	 	 	 	 
	2
	 	Sequa Corporation	 	USD	 	$2,000,000	 	HSBC UK
	 
	 	 	 	 	 	 	 	 
	3
	 	Sequa Corporation	 	USD	 	$500,000	 	HSBC US
	 
	 	 	 	 	 	 	 	 
	4
	 	Silonex c/o Sequa	 	CAD	 	14,000	 	HSBC US
	 
	 	 	 	 	 	 	 	 
	5
	 	Sequa Coatings	 	USD	 	$99,340	 	HSBC US
	 
	 	 	 	 	 	 	 	 
	6
	 	Sequa Corporation	 	USD	 	$475,000	 	HSBC US
	 
	 	 	 	 	 	 	 	 
	7
	 	Sequa Corporation	 	USD	 	$364,868	 	HSBC US
	 
	 	 	 	 	 	 	 	 
	8
	 	Sunrise Insurance	 	USD	 	$616,272	 	HSBC US
	 
	 	 	 	 	 	 	 	 
	9
	 	Sunrise Insurance	 	USD	 	$1,047,963	 	HSBC US
	 
	 	 	 	 	 	 	 	 
	10
	 	Sequa/Chromalloy Nevada	 	USD	 	$261,000	 	HSBC US
	 
	 	 	 	 	 	 	 	 
	11
	 	Sunrise Insurance	 	USD	 	$250,000	 	HSBC US
	 
	 	 	 	 	 	 	 	 
	12
	 	Sequa Corporation	 	USD	 	$25,368,442	 	HSBC UK
	 
	 	 	 	 	 	 	 	 
	13
	 	Sequa Corporation	 	USD	 	$421,725	 	HSBC US
	 
	 	 	 	 	 	 	 	 
	14
	 	Sequa Corporation	 	USD	 	$911,700	 	HSBC US
	 
	 	 	 	 	 	 	 	 
	15
	 	Sequa Corporation	 	USD	 	$761,400	 	HSBC US
	 
	 	 	 	 	 	 	 	 
	16
	 	Sequa Corporation	 	USD	 	$55,065	 	HSBC US
	 
	 	 	 	 	 	 	 	 
	17
	 	Sequa Corporation	 	USD	 	$1,130,000	 	HSBC US
	 
	 	 	 	 	 	 	 	 
	18
	 	Sequa Corporation	 	USD	 	$45,395	 	HSBC US

152

 

Schedule 17

Conditions Subsequent

	18	 	Thai Security
	 
	18.1	 	Receivables assignments/account assignments
	 
	 	 	By no later than 28 February 2006:

	 	(a)	 	A copy of each of the following Security Documents, duly executed, delivered
and perfected by the Parties to it:

	 	(i)	 	a Thai law (conditional) assignment of receivables from
Chromalloy (Thailand) Ltd (Note: this Condition Subsequent was waived by
Barclays Bank PLC and HSBC Bank plc in the second quarter of 2006); and
	 
	 	(ii)	 	Thai law (conditional) assignments of bank accounts by each of
Chromalloy Holding (Thailand) Ltd. and Chromalloy (Thailand) Ltd.

	 	(b)	 	In respect of each of Chromalloy Holding (Thailand) Ltd and Chromalloy
(Thailand) Ltd:

	 	(i)	 	a copy of its constitutional documents (amended as necessary to
permit entry into the Security Documents referred to in paragraph (a)) above;
	 
	 	(ii)	 	a copy of a resolution of its board of directors or equivalent
body:

	 	(A)	 	approving the terms of, and the transactions
contemplated by, the Finance Documents to which it is a party and which
it is required to enter into pursuant to clause 31.23 (Conditions
subsequent) of this Agreement and resolving that it execute such
Finance Documents;
	 
	 	(B)	 	authorising a specified person or persons to
execute the Finance Documents to which it is a party and which it is
required to enter into pursuant to clause 31.23 (Conditions
subsequent) of this Agreement
	 
	 	(C)	 	on its behalf;
	 
	 	(D)	 	authorising a specified person or persons, on
its behalf, to sign and/or despatch all documents and notices to be
signed and/or despatched by it under or in connection with the Finance
Documents to which it is a party and which it is required to enter into
pursuant to clause 31.23 (Conditions subsequent) of this Agreement;

	 	(iii)	 	a specimen of the signature of each person authorised by the
resolution referred to in paragraph (ii) above;
	 
	 	(iv)	 	a copy of a resolution signed by all the holders of its issued
shares, approving the terms of, and the transactions contemplated by, the
Finance Documents to which it is a party and which it is required to enter into
pursuant to clause 31.23 (Conditions subsequent) of this Agreement;

153

 

	 	(v)	 	a certificate of an authorised signatory of it, certifying that
each copy document relating to it specified in this paragraph (b) is correct,
complete and in full force and effect as at a date no earlier than the date of
the Security Documents referred to in paragraph (a) above;
	 
	 	(vi)	 	a copy of each consent from the Bank of Thailand in respect of
each Guarantor incorporated in Thailand remitting funds out of Thailand;
	 
	 	(vii)	 	a copy of any other documents or evidence required to perfect
any Security created or to be created under or pursuant to the Security
Documents referred to in paragraph (a) above, in accordance with applicable
law; and
	 
	 	(viii)	 	a legal opinion of Linklaters, legal advisors to the Arranger, the Security
Agent and the Agent in Thailand in respect of the Security Documents referred
to in paragraph (a) above.

	18.2	 	Mortgage of land and buildings
	 
	 	 	By no later than 21 March 2006:

	 	(a)	 	A copy of the following Security Document, duly executed, delivered and
perfected by the Parties to it:

	 	(i)	 	Thai law mortgage of land and buildings by Chromalloy
(Thailand) Ltd. in respect of the Major Thai Real Estate.

	 	(b)	 	All title deeds and documents relating to the Major Thai Real Estate.
	 
	 	(c)	 	A certificate of an authorised signatory of Chromalloy (Thailand) Ltd.
certifying that each copy document relating to it specified in paragraph 1.1(b) above
is correct, complete and in full force and effect as at a date no earlier than the date
of the Security Document referred to in paragraph (a) above.
	 
	 	(d)	 	A copy of any other documents or evidence required to perfect any Security
created or to be created under or pursuant to the Security Document referred to in
paragraph (a) above, in accordance with applicable law.
	 
	 	(e)	 	A legal opinion of Linklaters, legal advisers to the Arranger, the Security
Agent and the Agent in Thailand, in respect of the Security Document referred to in
paragraph (a) above.

	18.3	 	Machinery
	 
	 	 	By no later than 21 June 2006:

	 	(a)	 	Chromalloy (Thailand) Ltd. shall ensure that all of its machinery which (i) is
eligible for registration for a certificate of machinery ownership under Thai law and
(ii) is necessary and material for the conduct of its business shall be registered
pursuant to Thai law with the relevant Thai government agency.
	 
	 	(b)	 	A copy of the following Security Document, duly executed, delivered and
perfected by the Parties to it:

	 	(i)	 	Thai law mortgage of machinery by Chromalloy (Thailand) Ltd.

154

 

	 	(c)	 	A certificate of an authorised signatory of Chromalloy (Thailand) Ltd.
certifying that each copy document relating to it specified in paragraph 1.1(b) above
is correct, complete and in full force and effect as at a date no earlier than the date
of the Security Document referred to in paragraph (b) above.
	 
	 	(d)	 	A copy of any other documents or evidence required to perfect any Security
created or to be created under or pursuant to the Security Document referred to in
paragraph (b) above, in accordance with applicable law.
	 
	 	(e)	 	A legal opinion of Linklaters, legal advisers to the Arranger, the Security
Agent and the Agent in Thailand, in respect of the Security Document referred to in
paragraph (b) above.

	19	 	Certificates of Title — Major UK Real Estate

	 	(a)	 	By no later than 14 February 2006, the Certificates of Title, in each case
containing no matter that is reasonably considered by the Majority Lenders to be
materially adverse to the interests of the Finance Parties.
	 
	 	(b)	 	By no later than 28 February 2006, an overview report from Linklaters on the
Certificates of Title, containing no matter that is reasonably considered by the
Majority Lenders to be materially adverse to the interests of the Finance Parties.

	20	 	Financial information
	 
	 	 	By no later than 21 March 2006, the Original Financial Statements of Chromalloy Metal
Tectonics Limited.
	 
	21	 	Mostyn title deeds
	 
	 	 	Warwick International Group Limited shall use all reasonable endeavours to deliver to (or to
the order of) the Security Agent the original title deeds, documents and ancillary papers
relating to the Major UK Real Estate at Mostyn, as soon as reasonably practicable after the
date of this Agreement.
	 
	22	 	Other documents and evidence

	 	(a)	 	In each case described above, a copy of any other Authorisation or other
document, opinion or assurance which the Agent considers to be necessary (if it has
notified the Obligors’ Agent accordingly) in connection with the entry into and
performance of the transactions contemplated by any Finance Document which is required
to be entered into pursuant to clause 31.23 (Conditions subsequent) of this Agreement
or for the validity and enforceability of any such Finance Document.
	 
	 	(b)	 	In each case described above, evidence that the fees, costs and expenses then
due from each Unit Parent pursuant to clause 21 (Fees), clause 22.5 (Stamp taxes) and
clause 26 (Costs and expenses) in relation to the Security Documents referred to in
this schedule 16 have been paid.

155

 

Obligors’ Agent

Sequa Corporation

	 	 	 
	Address:

	 	Sequa Corporation
	 

	 	200 Park Avenue
	 

	 	New York, NY 10166
	 
	 	 
	Fax:

	 	+1 212 370 3417
	 
	 	 
	Attention:

	 	Jim Langelotti

	 	 	 	 	 
	By:

	 	KENNETH DRUCKER	 	 
	 
	 	 	 	 
	The Original Borrowers	 	 
	 
	 	 	 	 
	Warwick International Group Limited	 	 
	 
	 	 	 	 
	By:

	 	ROBERT ELLIS
	 	SIMON WATT-SMITH
	 
	 	 	 	 
	Chromalloy United Kingdom Limited	 	 
	 
	 	 	 	 
	By:

	 	MOSHE GOLDSHTEIN
	 	DAVID KAPLAN
	 
	 	 	 	 
	Chromalloy Holland B.V.	 	 
	 
	 	 	 	 
	By:

	 	THOMAS VAN DER LINDEN	 	 
	 
	 	 	 	 
	The Original Guarantors	 	 
	 
	 	 	 	 
	Warwick International Group Limited	 	 
	 
	 	 	 	 
	By:

	 	ROBERT ELLIS
	 	SIMON WATT-SMITH

156

 

	 	 	 	 	 
	Chromalloy United Kingdom Limited	 	 
	 
	 	 	 	 
	By:

	 	MOSHE GOLDSHTEIN
	 	DAVID KAPLAN
	 
	 	 	 	 
	Chromalloy Holland B.V.	 	 
	 
	 	 	 	 
	By:

	 	THOMAS VAN DER LINDEN	 	 
	 
	 	 	 	 
	Sequa Limited
	 	 	 	 
	 
	 	 	 	 
	By:

	 	ROBERT ELLIS
	 	SIMON WATT-SMITH
	 
	 	 	 	 
	Chromalloy Metal Tectonics Limited	 	 
	 
	 	 	 	 
	By:

	 	MOSHE GOLDSHTEIN
	 	DAVID KAPLAN
	 
	 	 	 	 
	Chromalloy Gas Turbine Europa B.V.	 	 
	 
	 	 	 	 
	By:

	 	THOMAS VAN DER LINDEN	 	 
	 
	 	 	 	 
	Chromalloy (Thailand) Ltd.	 	 
	 
	 	 	 	 
	By:

	 	THOMAS VAN DER LINDEN	 	 
	 
	 	 	 	 
	Chromalloy Holding (Thailand) Ltd.	 	 
	 
	 	 	 	 
	By:

	 	THOMAS VAN DER LINDEN	 	 

157

 

The Arranger

Barclays Capital, the investment banking division of Barclays Bank PLC

	 	 	 
	By:

	 	NEILS PEDERSEN

The Original Lenders

Barclays Bank PLC

	 	 	 
	By:

	 	NEILS PEDERSEN

The Agent

Barclays Bank PLC

	 	 	 
	Address:

	 	5 The North Colonnade
	 

	 	Canary Wharf
	 

	 	London E14 4BB
	 
	 	 
	Fax:

	 	+44 207 7773 4893
	 
	 	 
	Attention:

	 	Frank Rogers/Ola Busari

	 	 	 
	By:

	 	NEILS PEDERSEN

The Security Agent

Barclays Bank PLC

	 	 	 
	Address:

	 	5 The North Colonnade
	 

	 	Canary Wharf
	 

	 	London E14 4BB
	 
	 	 
	Fax:

	 	+44 207 7773 4893
	 
	 	 
	Attention:

	 	Frank Rogers/Ola Busari

	 	 	 
	By:

	 	NEILS PEDERSEN

158EX-10.1

 

 

Published
CUSIP Number: 59157FAK9

FIVE-YEAR CREDIT AGREEMENT

Dated as of June 20, 2007

among

METLIFE, INC.

AND

METLIFE FUNDING, INC.

as Borrowers,

BANK OF AMERICA, N.A.,

as Administrative Agent

and

L/C Issuer,

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Syndication Agent

CITIBANK, N.A.,

DEUTSCHE BANK AG NEW YORK BRANCH

and

JPMORGAN CHASE BANK, N.A.,

as Co-Documentation Agents

and

The Other Lenders Party Hereto

BANC OF AMERICA SECURITIES LLC,

and

WACHOVIA CAPITAL MARKETS, LLC

as

Joint Lead Arrangers and Book Managers

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	Section	 	Page
	ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	1.01. Defined Terms
	 	 	1	 
	1.02. Other Interpretive Provisions
	 	 	16	 
	1.03. Accounting Terms
	 	 	17	 
	1.04. References to Agreements and Laws
	 	 	17	 
	1.05. Days/Times of Day
	 	 	18	 
	1.06. Letter of Credit Amounts
	 	 	18	 
	 
	 	 	 	 
	ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS
	 	 	18	 
	2.01. Committed Loans
	 	 	18	 
	2.02. Borrowings, Conversions and Continuations of Committed Loans
	 	 	18	 
	2.03. Bid Loans
	 	 	19	 
	2.04. Letters of Credit
	 	 	22	 
	2.05. Prepayments
	 	 	29	 
	2.06. Termination or Reduction of Commitments
	 	 	30	 
	2.07. Repayment of Loans
	 	 	30	 
	2.08. Interest
	 	 	30	 
	2.09. Fees
	 	 	31	 
	2.10. Computation of Interest and Fees
	 	 	32	 
	2.11. Evidence of Debt
	 	 	32	 
	2.12. Payments Generally
	 	 	32	 
	2.13. Sharing of Payments
	 	 	34	 
	2.14. Increase in Commitments
	 	 	34	 
	2.15. Extensions of Maturity Date
	 	 	35	 
	 
	 	 	 	 
	ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY
	 	 	37	 
	3.01. Taxes
	 	 	37	 
	3.02. Illegality
	 	 	39	 
	3.03. Inability to Determine Rates
	 	 	39	 
	3.04. Increased Cost and Reduced Return; Capital Adequacy
	 	 	40	 
	3.05. Compensation for Losses
	 	 	40	 
	3.06. Matters Applicable to all Requests for Compensation
	 	 	41	 
	3.07. Survival
	 	 	41	 

 Five-Year Credit Agreement

ii

 

	 	 	 	 	 
	Section	 	Page
	ARTICLE IV. REPRESENTATIONS AND WARRANTIES
	 	 	41	 
	4.01. Organization; Powers
	 	 	41	 
	4.02. Authorization; Enforceability
	 	 	41	 
	4.03. Governmental Approvals; No Conflicts
	 	 	41	 
	4.04. Financial Condition; No Material Adverse Change
	 	 	42	 
	4.05. Properties
	 	 	42	 
	4.06. Litigation and Environmental Matters
	 	 	42	 
	4.07. Compliance with Laws and Agreements
	 	 	43	 
	4.08. Investment and Holding Company Status
	 	 	43	 
	4.09. Taxes
	 	 	43	 
	4.10. ERISA
	 	 	43	 
	4.11. Disclosure
	 	 	43	 
	4.12. Margin Stock
	 	 	43	 
	 
	 	 	 	 
	ARTICLE V. CONDITIONS TO CREDIT EXTENSIONS
	 	 	43	 
	5.01. Closing Date
	 	 	43	 
	5.02. Each Credit Event
	 	 	44	 
	 
	 	 	 	 
	ARTICLE VI. AFFIRMATIVE COVENANTS
	 	 	45	 
	6.01. Financial Statements and Other Information
	 	 	45	 
	6.02. Notices of Defaults
	 	 	46	 
	6.03. Existence; Conduct of Business
	 	 	46	 
	6.04. Payment of Obligations
	 	 	47	 
	6.05. Maintenance of Properties; Insurance
	 	 	47	 
	6.06. Books and Records; Inspection Rights
	 	 	47	 
	6.07. Compliance with Laws
	 	 	47	 
	6.08. Use of Proceeds
	 	 	47	 
	6.09. Support Agreement
	 	 	47	 
	 
	 	 	 	 
	ARTICLE VII. NEGATIVE COVENANTS
	 	 	48	 
	7.01. Liens
	 	 	48	 
	7.02. Fundamental Changes
	 	 	49	 
	7.03. Transactions with Affiliates
	 	 	50	 
	7.04. Consolidated Net Worth
	 	 	50	 
	 
	 	 	 	 
	ARTICLE VIII. EVENTS OF DEFAULT
	 	 	50	 
	8.01. Events of Default
	 	 	50	 
	8.02. Remedies Upon Event of Default
	 	 	51	 
	8.03. Application of Funds
	 	 	52	 

 Five-Year Credit Agreement

iii

 

	 	 	 	 	 
	Section	 	Page
	ARTICLE IX. ADMINISTRATIVE AGENT
	 	 	53	 
	9.01. Appointment and Authorization of Administrative Agent
	 	 	53	 
	9.02. Delegation of Duties
	 	 	53	 
	9.03. Liability of Administrative Agent
	 	 	53	 
	9.04. Reliance by Administrative Agent
	 	 	54	 
	9.05. Notice of Default
	 	 	54	 
	9.06. Credit Decision; Disclosure of Information by Administrative Agent
	 	 	54	 
	9.07. Indemnification of Administrative Agent
	 	 	55	 
	9.08. Administrative Agent in its Individual Capacity
	 	 	55	 
	9.09. Successor Administrative Agent
	 	 	55	 
	9.10. Administrative Agent May File Proofs of Claim
	 	 	56	 
	9.11. Other Agents; Joint Lead Arrangers and Book Managers
	 	 	57	 
	 
	 	 	 	 
	ARTICLE X. MISCELLANEOUS
	 	 	57	 
	10.01. Amendments, Etc.
	 	 	57	 
	10.02. Notices and Other Communications; Facsimile Copies
	 	 	58	 
	10.03. No Waiver; Cumulative Remedies
	 	 	60	 
	10.04. [Intentionally Omitted]
	 	 	60	 
	10.05. Costs, Expenses and Indemnification
	 	 	60	 
	10.06. Payments Set Aside
	 	 	61	 
	10.07. Successors and Assigns
	 	 	61	 
	10.08. Confidentiality
	 	 	64	 
	10.09. Set-off
	 	 	65	 
	10.10. Interest Rate Limitation
	 	 	65	 
	10.11. Counterparts
	 	 	66	 
	10.12. Integration
	 	 	66	 
	10.13. Survival of Representations and Warranties
	 	 	66	 
	10.14. Severability
	 	 	66	 
	10.15. Mitigation of Obligations; Replacement of Lenders
	 	 	66	 
	10.16. Governing Law
	 	 	67	 
	10.17. Waiver of Right to Trial by Jury
	 	 	67	 
	10.18. No Advisory or Fiduciary Responsibility
	 	 	67	 
	10.19. USA PATRIOT Act Notice
	 	 	68	 
	10.20. Notice of Termination of Existing Credit Agreements
	 	 	68	 

 Five-Year Credit Agreement

iv

 

	 	 	 	 	 
	SCHEDULES
	 	 	 	 
	 
	 	 	 	 
	2.01 Commitments and Pro Rata Shares
	 	 	 	 
	4.06 Disclosed Matters
	 	 	 	 
	10.2 Administrative Agent’s Office, Certain Addresses for Notices
	 	 	 	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	Form of
	 	 	 	 
	 
	 	 	 	 
	A            Committed Loan Notice
	 	 	 	 
	B-1         Bid Request
	 	 	 	 
	B-2         Competitive Bid
	 	 	 	 
	C            Note
	 	 	 	 
	D            Assignment and Assumption
	 	 	 	 
	E            Opinion of Chief Counsel-General Corporate
	 	 	 	 

Five-Year Credit Agreement

v

 

FIVE-YEAR CREDIT AGREEMENT

     This FIVE-YEAR CREDIT AGREEMENT (“Agreement”) is entered into as of June 20, 2007,
among METLIFE, INC. (“MetLife”) and METLIFE FUNDING, INC. (“Funding”; together with
MetLife, each a “Borrower” and collectively the “Borrowers”), each lender from time
to time party hereto (collectively, the “Lenders” and individually, a “Lender”),
WACHOVIA BANK, NATIONAL ASSOCIATION, as Syndication Agent, and BANK OF AMERICA, N.A., as
Administrative Agent and L/C Issuer.

     The Borrowers have requested that (a) the Lenders provide a revolving credit facility and (b)
the L/C Issuer issue (and the Lenders purchase participations in) letters of credit from time to
time, and the Lenders and the L/C Issuer are willing to do so on the terms and conditions set forth
herein.

     In consideration of the mutual covenants and agreements herein contained, the parties hereto
covenant and agree as follows:

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS

     1.01. Defined Terms. As used in this Agreement, the following terms shall have the meanings set
forth below:

     “Absolute Rate” means a fixed rate of interest expressed in multiples of
1/100th of one basis point.

     “Absolute Rate Loan” means a Bid Loan that bears interest at a rate determined with
reference to an Absolute Rate.

     “Act” has the meaning specified in Section 10.19.

     “Additional Commitment Lender” has the meaning specified in Section 2.15(d).

     “Administrative Agent” means Bank of America in its capacity as administrative agent
under each of the Loan Documents, or any successor administrative agent.

     “Administrative Agent’s Office” means the Administrative Agent’s address as set forth
on Schedule 10.02, or such other address or account as the Administrative Agent may from
time to time notify the Borrowers and the Lenders.

     “Administrative Questionnaire” means an Administrative Questionnaire in a form
supplied by the Administrative Agent.

     “Affiliate” means, with respect to any Person, another Person that directly, or
indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified; provided that, for the purposes of Section 10.07, any special
purpose funding vehicle that funds itself principally in the commercial paper market shall not
constitute an Affiliate of any Lender. “Control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or policies of a
Person, whether through the ability to exercise voting power, by contract or otherwise.
“Controlling” and “Controlled” have meanings correlative thereto.

Five-Year Credit Agreement

 

 

     “Agent-Related Persons” means the Administrative Agent, together with its Affiliates
(including, in the case of Bank of America in its capacity as the Administrative Agent, the
Arrangers), and the partners, officers, directors, employees, agents and advisors of such Persons
and Affiliates.

     “Aggregate Commitments” means, as of the date of any determination, the Commitments of
all of the Lenders then in effect. On the date hereof the Aggregate Commitments shall equal
$3,000,000,000. Such amount may be increased or decreased as provided herein; provided
that the Aggregate Commitments shall not exceed $4,000,000,000.

     “Agreement” means this Five-Year Credit Agreement.

     “Applicable Insurance Regulatory Authority” means the insurance department or similar
insurance regulatory or administrative authority or agency of the jurisdiction in which the Company
is domiciled.

     “Applicable Rate” means, from time to time, the Facility Fee, the Eurodollar Rate
Margin, the Letter of Credit Fee, the Base Rate or the Utilization Fee (as applicable according to
the context) expressed as a percentage per annum, determined by reference to the Debt Rating of
the applicable Borrower as set forth below:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Applicable Rate
	 	 	 	 	 	 	 	 	 	 	Eurodollar	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Rate	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Margin and	 	 	 	 
	Pricing	 	Debt Rating	 	 	 	 	 	Letter of	 	Base	 	Utilization
	Level	 	S&P/Moody’s	 	Facility Fee	 	Credit Fee	 	Rate	 	Fee
	1
	 	AA-/Aa3 or better	 	 	0.040	 	 	 	0.085	 	 	 	0	 	 	 	0.050	 
	2
	 	 	A+/A1	 	 	 	0.045	 	 	 	0.105	 	 	 	0	 	 	 	0.050	 
	3
	 	 	A/A2	 	 	 	0.050	 	 	 	0.150	 	 	 	0	 	 	 	0.050	 
	4
	 	 	A-/A3	 	 	 	0.060	 	 	 	0.190	 	 	 	0	 	 	 	0.050	 
	5
	 	BBB+/Baa1	 	 	0.080	 	 	 	0.270	 	 	 	0	 	 	 	0.050	 
	6
	 	BBB/Baa2	 	 	0.100	 	 	 	0.350	 	 	 	0	 	 	 	0.050	 
	 
	 	or worse	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

“Debt Rating” means, as of any date of determination, the rating as determined
by either S&P or Moody’s (collectively, the “Debt Ratings”) of the applicable
Borrower’s non-credit-enhanced, senior unsecured long-term debt (or in the case of Funding,
the non-credit-enhanced, senior unsecured long-term debt of the Company) provided
that if a Debt Rating is issued by each of the foregoing rating agencies, then the higher of
such Debt Ratings shall apply (with the Debt Rating for Pricing Level 1 being the highest
and the Debt Rating for Pricing Level 5 being the lowest), unless there is a split in Debt
Ratings of more than one level, in which case the Pricing Level that is one level lower than
the Pricing Level of the higher Debt Rating shall apply.

Notwithstanding the definition of “Applicable Rate” set forth above, the Facility Fee shall
be based on the Debt Rating of the lower rated of the Borrowers by S&P and Moody’s.
Initially, the Applicable Rate for the Facility Fee shall be determined based upon Pricing
Level 3. Each change in the Applicable Rate resulting from a publicly announced change in
the Debt Rating shall be effective, in the case of an upgrade, during the period commencing
on the date of the public announcement thereof and ending on the date immediately preceding
the effective date of

Five-Year Credit Agreement

2

 

the next such change and, in the case of a downgrade, 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 such change.

     “Applicant” means with respect to a particular Letter of Credit, any Borrower or any
other Subsidiary of MetLife applying for such Letter of Credit pursuant to Section 2.04.

     “Approved Fund” has the meaning specified in Section 10.07(g).

     “Arrangers” means Banc of America Securities LLC and Wachovia Capital Markets, LLC, in
their capacities as joint lead arrangers and book managers.

     “Assignee Group” has the meaning specified in Section 10.07(g).

     “Assignment and Assumption” means an Assignment and Assumption substantially in the
form of Exhibit D or any other form approved by the Administrative Agent.

     “Attorney Costs” means and includes all fees, expenses and disbursements of any one
law firm or other external counsel and, without duplication, in the case of an Event of Default
referred to in Section 8.01(h) or 8.01(i), the allocated cost of internal legal
services and all expenses and disbursements of internal counsel.

     “Attributable Indebtedness” means, on any date, in respect of any capital lease of any
Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared
as of such date in accordance with GAAP.

     “Audited Financial Statements” means the audited consolidated balance sheet of MetLife
and its Subsidiaries for the fiscal year ended December 31, 2006, and the related consolidated
statements of income, stockholders’ equity and cash flows for such fiscal year of MetLife and its
Subsidiaries, including the notes thereto.

     “Auto-Extension Letter of Credit” has the meaning specified in Section
2.04(b)(iii).

     “Availability Period” means, for any Lender, the period from and including the Closing
Date to the earliest of (a) the Maturity Date of such Lender, (b) the date of termination of the
Aggregate Commitments pursuant to Section 2.06, and (c) the date of termination of the
commitment of each Lender to make Loans and of the obligation of the L/C Issuer to make L/C Credit
Extensions pursuant to Section 8.02.

     “Bank of America” means Bank of America, N.A. and its successors.

     “Base Rate” means for any day a fluctuating rate per annum equal to the higher of (a)
the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect for such day as
publicly announced from time to time by Bank of America as its “prime rate.” The “prime rate” is a
rate set by Bank of America based upon various factors including Bank of America’s costs and
desired return, general economic conditions and other factors, and is used as a reference point for
pricing some loans, which may be priced at, above, or below such announced rate. Any change in
such rate announced by Bank of America shall take effect at the opening of business on the day
specified in the public announcement of such change.

     “Base Rate Committed Loan” means a Committed Loan that is a Base Rate Loan.

Five-Year Credit Agreement

3

 

     “Base Rate Loan” means a Loan that bears interest based on the Base Rate.

     “Bid Borrowing” means a borrowing consisting of simultaneous Bid Loans of the same
Type from each of the Lenders whose offer to make one or more Bid Loans as part of such borrowing
has been accepted under the auction bidding procedures described in Section 2.03.

     “Bid Loan” has the meaning specified in Section 2.03(a).

     “Bid Loan Lender” means, in respect of any Bid Loan, the Lender making such Bid Loan
to the applicable Borrower.

     “Bid Request” means a written request for one or more Bid Loans substantially in the
form of Exhibit B-1.

     “Borrower” has the meaning specified in the introductory paragraph hereto.

     “Borrower Materials” has the meaning specified in Section 6.01.

     “Borrowing” means a Committed Borrowing or a Bid Borrowing, as the context may
require.

     “Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact closed in, the state
where the Administrative Agent’s Office is located and, if such day relates to any Eurodollar Rate
Loan, means any such day on which dealings in Dollar deposits are conducted by and between banks in
the London interbank eurodollar market.

     “Cash Collateralize” has the meaning specified in Section 2.04(g).

     “Change in Control” means (a) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the Securities Exchange
Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the
date hereof), of shares representing more than 25% of the aggregate ordinary voting power
represented by the issued and outstanding capital stock of MetLife, or (b) occupation of a majority
of the seats (other than vacant seats) on the board of directors of MetLife by Persons who were
neither (i) nominated by the board of directors of MetLife nor (ii) appointed by directors so
nominated.

     “Closing Date” means the first date all the conditions precedent in Section
5.01 are satisfied or waived in accordance with Section 10.01.

     “Co-Applicant” means a Borrower acting as a co-applicant for an Applicant with respect
to a particular Letter of Credit.

     “Code” means the Internal Revenue Code of 1986.

     “Commitment” means, as to each Lender, its obligation to (a) make Committed Loans to
the Borrowers pursuant to Section 2.01 and (b) purchase participations in L/C Obligations,
in an aggregate principal amount at any one time outstanding not to exceed the amount set forth
opposite such Lender’s name on Schedule 2.01 or in the Assignment and Assumption pursuant
to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from
time to time in accordance with this Agreement.

Five-Year Credit Agreement

4

 

     “Committed Borrowing” means a borrowing consisting of simultaneous Committed Loans of
the same Type and, in the case of Eurodollar Rate Committed Loans, having the same Interest Period
made by each of the Lenders pursuant to Section 2.01.

     “Committed Loan” has the meaning specified in Section 2.01.

     “Committed Loan Notice” means a notice of (a) a Committed Borrowing, (b) a conversion
of Committed Loans from one Type to the other, or (c) a continuation of Eurodollar Rate Committed
Loans, pursuant to Section 2.02(a), which, if in writing, shall be substantially in the
form of Exhibit A.

     “Company” means Metropolitan Life Insurance Company.

     “Compensation Period” has the meaning specified in Section 2.12(c)(ii).

     “Competitive Bid” means a written offer by a Lender to make one or more Bid Loans,
substantially in the form of Exhibit B-2, duly completed and signed by a Lender.

     “Consolidated Net Worth” means the consolidated stockholders’ equity, determined in
accordance with GAAP, of MetLife and its Consolidated Subsidiaries.

     “Consolidated Subsidiary” means, with respect to any Person (the “parent”) at
any date, any corporation, limited liability company, partnership, association or other entity the
accounts of which would be consolidated with those of the parent in the parent’s consolidated
financial statements if such financial statements were prepared in accordance with GAAP as of such
date.

     “Contractual Obligation” means, as to any Person, any provision of any security issued
by such Person or of any agreement, instrument or other undertaking to which such Person is a party
or by which it or any of its property is bound.

     “Control” has the meaning specified in the definition of “Affiliate.”

     “Credit Extension” means each of the following: (a) a Borrowing and (b) an L/C Credit
Extension.

     “Debt Rating” has the meaning specified in the definition of “Applicable Rate.”

     “Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservation, dissolution, bankruptcy, assignment for the benefit of creditors,
moratorium, rehabilitation, rearrangement, receivership, insolvency, reorganization, or similar
debtor relief Laws of the United States, any state of the United States or any other applicable
jurisdiction from time to time in effect and affecting the rights of creditors generally.

     “Default” means any event or condition that constitutes an Event of Default or that,
with the giving of any notice, the passage of time, or both, would, unless cured or waived, be an
Event of Default.

     “Default Rate” means (a) when used with respect to Obligations other than Letter of
Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate, if
any, applicable to Base Rate Loans plus (iii) 2% per annum; provided,
however, that with respect to a Eurodollar Rate Loan, the Default Rate shall be an interest
rate equal to the interest rate (including any Applicable Rate) otherwise applicable to such Loan
plus 2% per annum, and (b) when used with respect to Letter of Credit Fees, a

Five-Year Credit Agreement

5

 

rate equal to the Applicable Rate plus 2% per annum, in all cases to the fullest extent
permitted by applicable Laws.

     “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the
Committed Loans or participations in L/C Obligations required to be funded by it hereunder within
one Business Day of the date required to be funded by it hereunder, (b) has otherwise failed 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 (c) has been deemed insolvent or become the subject of a bankruptcy or insolvency proceeding.

     “Disclosed Matters” means the actions, suits and proceedings and the environmental
matters disclosed in Schedule 4.06.

     “Dollar” and “$” mean lawful money of the United States.

     “Eligible Assignee” has the meaning specified in Section 10.07(g).

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

     “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of
MetLife or any of its Material Subsidiaries directly or indirectly resulting from or based upon (a)
violation of any Environmental Law, (b) the generation, use, handling, transportation, storage,
treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the
release or threatened release of any Hazardous Materials into the environment or (e) any contract,
agreement or other consensual arrangement pursuant to which liability is assumed or imposed with
respect to any of the foregoing.

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

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

     “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day
notice period is waived and other than an event which is based on a certain level of unfunded
vested benefits, or the requirement to pay variable PBGC premiums, provided that the amount of
unfunded vested benefits, when determined on a FAS87 basis, do not exceed $50,000,000); (b) the
existence with respect to any Plan of an “accumulated funding deficiency” (as defined in Section
412 of the Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section
412(d) of the Code or Section 303(d) of ERISA of an application for a waiver of the minimum funding
standard with respect to any Plan; (d) the incurrence by MetLife or any of its ERISA Affiliates of
any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt
by MetLife or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to
an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the
incurrence by MetLife or any of its ERISA Affiliates of any liability

Five-Year Credit Agreement

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with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or
(g) the receipt by MetLife or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from MetLife or any ERISA Affiliate of any notice, concerning the imposition of
Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be,
insolvent or in reorganization, within the meaning of Title IV of ERISA.

     “Eurodollar Base Rate” has the meaning specified in the definition of “Eurodollar
Rate.”

     “Eurodollar Bid Margin” means the margin above or below the Eurodollar Base Rate to be
added to or subtracted from the Eurodollar Base Rate, which margin shall be expressed in multiples
of 1/100th of one basis point.

     “Eurodollar Margin Bid Loan” means a Bid Loan that bears interest at a rate based upon
the Eurodollar Base Rate.

     “Eurodollar Rate” means, for any Interest Period with respect to any Eurodollar Rate
Loan, a rate per annum determined by the Administrative Agent pursuant to the following formula:

	 	 	 	 	 	 	 	 	 
	 

	 	Eurodollar Rate
	 	=
	 	Eurodollar Base Rate
 

1.00 – Eurodollar Reserve Percentage
	 	 

     Where,

     “Eurodollar Base Rate” means, for such Interest Period the rate per annum equal to the
British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other
commercially available source providing quotations of BBA LIBOR as designated by the Administrative
Agent from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such
Interest Period) with a term equivalent to such Interest Period. If such rate is not available at
such time for any reason, then the “Eurodollar Rate” for such Interest Period shall be the rate per
annum determined by the Administrative Agent to be the rate at which deposits in Dollars for
delivery on the first day of such Interest Period in same day funds in the approximate amount of
the Eurodollar Rate Loan being made, continued or converted by Bank of America (or in the case of a
Bid Loan, the applicable Bid Loan Lender) and with a term equivalent to such Interest Period would
be offered by Bank of America’s (or such Bid Loan Lender’s) London Branch to major banks in the
London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two
Business Days prior to the commencement of such Interest Period.

     “Eurodollar Reserve Percentage” means, for any day during any Interest Period, the
reserve percentage (expressed as a decimal, carried out to five decimal places) in effect on such
day, whether or not applicable to any Lender, under regulations issued from time to time by the FRB
for determining the maximum reserve requirement (including any emergency, supplemental or other
marginal reserve requirement) with respect to Eurocurrency funding (currently referred to as
“Eurocurrency liabilities”). The Eurodollar Rate for each outstanding Eurodollar Rate Loan shall
be adjusted automatically as of the effective date of any change in the Eurodollar Reserve
Percentage.

     “Eurodollar Rate Committed Loan” means a Committed Loan that bears interest at a rate
based on the Eurodollar Rate.

     “Eurodollar Rate Loan” means a Eurodollar Rate Committed Loan or a Eurodollar Margin
Bid Loan.

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     “Event of Default” has the meaning specified in Section 8.01.

     “Excluded Taxes” means, 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 any Borrower
hereunder, (a) income, franchise or similar taxes, in each case, imposed on (or measured by) its
net income by the United States of America, or 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, or, in
the case of a jurisdiction (or any political subdivision thereof) that imposes taxes on the basis
of management or control or other concept or principle of residence, the jurisdiction (or any
political subdivision thereof) in which such recipient is so resident, (b) Taxes imposed by reason
of any present or former connection between such Person and the jurisdiction (or any political
subdivision thereof) imposing such Taxes, other than as a result of the execution and delivery of
this Agreement, the making of any Credit Extensions hereunder or the performance of any action
provided for hereunder, (c) any branch profits taxes imposed by the United States of America or any
similar tax imposed by any other jurisdiction in which any Borrower is located and (d) in the case
of a Foreign Lender (other than an assignee pursuant to a request by the Borrowers under
Section 10.15(b)), any withholding tax that (i) is imposed on amounts payable to such
Foreign Lender at the time such Foreign Lender becomes a party to this Agreement (or designates a
new lending office), 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 such Borrower with respect to such withholding tax pursuant to Section 3.01(a)
or (ii) is attributable to such Foreign Lender’s failure to comply with Section 3.01(e).

     “Existing Credit Agreements” means (a) that certain Five-Year Credit Agreement dated
as of April 22, 2005, as amended by that certain First Amendment to Five-Year Credit Agreement
dated as of August 15, 2006, among the Borrowers, Bank of America, as administrative agent, and a
syndicate of lenders, and (b) that certain Amended and Restated Five-Year Credit Agreement dated as
of August 15, 2006, among the Borrowers, Bank of America, as administrative agent, and a syndicate
of lenders.

     “Existing Letters of Credit” means the letters of credit heretofore issued pursuant to
the Existing Credit Agreements that are outstanding on the Closing Date.

     “Extending Lender” has the meaning specified in Section 2.15(b).

     “Extension Date” has the meaning specified in Section 2.15(a).

     “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of the Federal Reserve
System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of
New York on the Business Day next succeeding such day; provided that (a) if such day is not
a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the
next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such
rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day
shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%)
charged to Bank of America on such day on such transactions as reasonably determined by the
Administrative Agent.

     “Fee Letter” means that certain letter agreement dated as of May 16, 2007, among the
Borrowers, Bank of America, and Banc of America Securities LLC.

     “Financial Officer” means the chief financial officer, principal accounting officer,
treasurer, assistant treasurer or controller of MetLife.

Five-Year Credit Agreement

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     “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than that in which any Borrower is located. 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.

     “FHLBB” has the meaning specified in Section 7.01(i).

     “FRB” means the Board of Governors of the Federal Reserve System of the United States.

     “Fund” has the meaning specified in Section 10.07(g).

     “Funding” has the meaning specified in the introductory paragraph hereto.

     “GAAP” means generally accepted accounting principles in the United States.

     “Governmental Authority” means any nation or government, any state or other political
subdivision thereof, any agency, authority, instrumentality, regulatory body, court, administrative
tribunal, central bank or other entity exercising executive, legislative, judicial, taxing,
regulatory or administrative powers or functions of or pertaining to government.

     “Granting Lender” has the meaning specified in Section 10.07(h).

     “Guarantee” means, as to any Person, any obligation, contingent or otherwise, of such
Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other
obligation payable or performable by another Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation, (ii) to purchase or lease property, securities or services for the purpose of
assuring the obligee in respect of such Indebtedness or other obligation of the payment or
performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity
capital or any other financial statement condition or liquidity or level of income or cash flow of
the primary obligor so as to enable the primary obligor to pay such Indebtedness or other
obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in
respect of such Indebtedness or other obligation of the payment or performance thereof or to
protect such obligee against loss in respect thereof (in whole or in part). The amount of any
Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related
primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not
stated or determinable, the maximum reasonably anticipated liability in respect thereof as
determined by the guaranteeing Person in good faith. The term “Guarantee” as a verb has a
corresponding meaning.

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

     “Honor Date” has the meaning specified in Section 2.04(c)(i).

     “Increase Effective Date” has the meaning specified in Section 2.14(c).

     “Indebtedness” means, as to any Person at a particular time, without duplication, all
of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

Five-Year Credit Agreement

9

 

     (a) all obligations of such Person for borrowed money and all obligations of such
Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

     (b) all direct or contingent obligations of such Person arising under letters of credit
(including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and
similar instruments;

     (c) all obligations of such Person to pay the deferred purchase price of property or
services (other than trade accounts payable in the ordinary course of business);

     (d) indebtedness (excluding prepaid interest thereon) secured by a Lien on property
owned or being purchased by such Person (including indebtedness arising under conditional
sales or other title retention agreements), whether or not such indebtedness shall have been
assumed by such Person or is limited in recourse;

     (e) all Surplus Relief Reinsurance ceded by such Person;

     (f) capital leases of which such Person is the lessee; and

     (g) all Guarantees of such Person in respect of any of the foregoing.

     For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any
partnership or joint venture (other than a joint venture that is itself a corporation or limited
liability company) in which such Person is a general partner or a joint venturer, unless such
Indebtedness is expressly made non-recourse to such Person. The amount of any capital lease as of
any date shall be deemed to be the amount of Attributable Indebtedness in respect thereof as of
such date.

     “Indemnified Liabilities” has the meaning specified in Section 10.05.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Indemnitee” has the meaning specified in Section 10.05.

     “Information” has the meaning specified in Section 10.08.

     “Interest Payment Date” means, (a) as to any Loan owing to any Lender other than a
Base Rate Loan, the last day of each Interest Period applicable to such Loan and the Maturity Date
of such Lender; provided, however, that if any Interest Period for a Eurodollar
Rate Loan exceeds three months, the respective dates that fall every three months after the
beginning of such Interest Period shall also be Interest Payment Dates; and (b) as to any Base Rate
Loan owing to any Lender, the last Business Day of each March, June, September and December and the
Maturity Date of such Lender.

     “Interest Period” means (a) as to each Eurodollar Rate Loan, the period commencing on
the date such Eurodollar Rate Loan is disbursed or (in the case of any Eurodollar Rate Committed
Loan) converted to or continued as a Eurodollar Rate Loan and ending on the date one, two, three or
six months thereafter, as selected by the applicable Borrower in its Committed Loan Notice or Bid
Request, as the case may be; and (b) as to each Absolute Rate Loan, a period of not less than 7
days and not more than 360 days as selected by the applicable Borrower in its Bid Request;
provided that:

     (i) any Interest Period that would otherwise end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless, in the case of a Eurodollar
Rate

Five-Year Credit Agreement

10

 

Loan, such Business Day falls in another calendar month, in which case such Interest
Period shall end on the next preceding Business Day;

     (ii) any Interest Period pertaining to a Eurodollar Rate Loan that begins on the last
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period) shall end on the
last Business Day of the calendar month at the end of such Interest Period; and

     (iii) no Interest Period shall, with respect to any Lender, extend beyond the Maturity
Date of such Lender.

     “IRS” means the United States Internal Revenue Service.

     “ISP” means, with respect to any Letter of Credit, the “International Standby
Practices 1998” published by the Institute of International Banking Law & Practice, Inc. (or such
later version thereof as may be in effect at the time of issuance).

     “Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit
Application, and any other document, agreement and instrument entered into by the L/C Issuer and a
Borrower (and, if applicable, any Subsidiary as an Applicant) or in favor of the L/C Issuer and
relating to any such Letter of Credit.

     “Laws” means, collectively, all international, foreign, Federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or
judicial precedents or authorities, including the interpretation or administration thereof by any
Governmental Authority charged with the enforcement, interpretation or administration thereof, and
all applicable administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Authority, in each case whether or not having the
force of law.

     “L/C Advance” means, with respect to each Lender, such Lender’s funding of its
participation in any L/C Borrowing in accordance with its Pro Rata Share.

     “L/C Borrowing” means an extension of credit resulting from a drawing under any Letter
of Credit which has not been reimbursed on the date when made or refinanced as a Committed
Borrowing.

     “L/C Credit Extension” means, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof, or the increase of the amount thereof.

     “L/C Issuer” means Bank of America in its capacity as issuer of Letters of Credit
hereunder, or any successor issuer of Letters of Credit hereunder.

     “L/C Obligations” means, as at any date of determination, the aggregate undrawn amount
of all outstanding Letters of Credit plus the aggregate of all Unreimbursed Amounts,
including all L/C Borrowings. For purposes of computing the aggregate undrawn amount of any Letter
of Credit (other than for purposes of calculating the fees payable pursuant to Sections
2.04(i) and (j) and Sections 2.09(a) and (b)), such amount shall be
determined in accordance with Section 1.06. For all purposes of this Agreement, if on any
date of determination a Letter of Credit has expired by its terms but any amount may still be drawn
thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be
deemed to be “outstanding” in the amount so remaining available to be drawn.

Five-Year Credit Agreement

11

 

     “Lender” has the meaning specified in the introductory paragraph hereto and, as the
context requires, includes the L/C Issuer.

     “Lending Office” means, as to any Lender, the office or offices of such Lender
described as such in such Lender’s Administrative Questionnaire, or such other office or offices as
a Lender may from time to time notify the Borrowers and the Administrative Agent.

     “Letter of Credit” means any standby letter of credit issued or deemed issued
hereunder and shall include the Existing Letters of Credit.

     “Letter of Credit Application” means an application and agreement for the issuance or
amendment of a Letter of Credit in the form from time to time in use by the L/C Issuer.

     “Letter of Credit Fee” has the meaning specified in Section 2.04(i).

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

     “Loan” means an extension of credit by a Lender to a Borrower under Article II
in the form of a Committed Loan, or a Bid Loan.

     “Loan Documents” means this Agreement, each Note, each Issuer Document, and the Fee
Letter.

     “Loan Parties” means, collectively, the Borrowers.

     “Margin Stock” means “margin stock” within the meaning of Regulations U and X.

     “Material Adverse Change” means any event, development or circumstance that has had or
could reasonably be expected to have a material adverse effect on (a) the business, assets,
property, condition (financial or otherwise) or prospects of MetLife and its Subsidiaries taken as
a whole, or (b) the validity or enforceability of this Agreement or the rights and remedies of the
Administrative Agent and the Lenders hereunder.

     “Material Indebtedness” means Indebtedness (other than the Loans), or obligations in
respect of one or more Swap Contracts, of MetLife or any of its Material Subsidiaries in an
aggregate principal amount exceeding $500,000,000 (or its equivalent in any other currency). For
purposes of determining Material Indebtedness, the “principal amount” of the obligations of MetLife
or any of its Material Subsidiaries in respect of any Swap Contract at any time shall be the
maximum aggregate amount (giving effect to any netting agreements) that MetLife or such Material
Subsidiary would be required to pay if such Swap Contract were terminated at such time.

     “Material Subsidiary” means, at any time, (i) Funding, (ii) the Company and (iii) each
Subsidiary of MetLife that as of such time meets the definition of “significant subsidiary”
contained as of the date hereof in Regulation S-X of the SEC, but excluding any Subsidiary (an
“Investment Subsidiary”) established in connection with the ownership and investment management of
the general account assets of (a) the Company or (b) any other Material Subsidiary of MetLife that
is an insurance company (each of the Company and such other insurance company being an “Insurance
Subsidiary”); provided, however, that so long as the consolidated assets of the Investment
Subsidiaries of any Insurance Subsidiary exceed

Five-Year Credit Agreement

12

 

25% of the consolidated assets of such Insurance Subsidiary, then each such Investment
Subsidiary shall be deemed to be a Material Subsidiary.

     “Maturity Date” means, for any Lender, June 20, 2012, as such date may be extended for
such Lender pursuant to Section 2.15; provided that no Maturity Date may occur
after June 20, 2014.

     “Maximum Rate” has the meaning specified in Section 10.10.

     “MetLife” has the meaning specified in the introductory paragraph hereto.

     “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.

     “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.

     “NAIC” means the National Association of Insurance Commissioners and any successor
thereto.

     “Non-Extending Lender” has the meaning specified in Section 2.15(b).

     “Non-Extension Notice Date” has the meaning specified in Section 2.04(b)(iii).

     “Note” means a promissory note made by a Borrower in favor of a Lender evidencing
Loans made by such Lender, substantially in the form of Exhibit C.

     “Notice Date” has the meaning specified in Section 2.15(b).

     “Obligations” means all advances to, and debts, liabilities, obligations, covenants
and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan
or Letter of Credit, whether direct or indirect (including those acquired by assumption), absolute
or contingent, due or to become due, now existing or hereafter arising and including interest and
fees that accrue after the commencement by or against any Loan Party or any Affiliate thereof of
any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding,
regardless of whether such interest and fees are allowed claims in such proceeding.

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

     “Outstanding Amount” means (i) with respect to Committed Loans and Bid Loans on any
date, the aggregate principal amount thereof outstanding at the close of business on such date
after giving effect to any borrowings and prepayments or repayments of Committed Loans and Bid
Loans, as the case may be, occurring on such date; and (ii) with respect to any L/C Obligations on
any date, the amount of such L/C Obligations at the close of business on such date after giving
effect to any L/C Credit Extension occurring on such date and any other changes in the aggregate
amount of the L/C Obligations as of such date, including such changes resulting from any
reimbursements of outstanding unpaid drawings under any Letters of Credit or any reductions in the
maximum amount available for drawing under Letters of Credit taking effect on such date.

     “Participant” has the meaning specified in Section 10.07(d).

     “PBGC” means the Pension Benefit Guaranty Corporation.

     “Permitted Encumbrances” means:

Five-Year Credit Agreement

13

 

     (a) Liens imposed by law for taxes that are not yet due or are being contested in
compliance with Section 6.04;

     (b) bankers’, carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and
other like Liens imposed by law, arising in the ordinary course of business and securing
obligations that are not overdue by more than 30 days or are being contested in compliance
with Section 6.04;

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

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

     (e) Liens on deposit accounts or securities accounts, including bankers’ Liens and
rights of setoff arising in the ordinary course of business;

     (f) Liens arising out of deposits of cash or securities with reinsurance trusts, ceding
companies or insurance regulators in the ordinary course of business; and

     (g) easements, zoning restrictions, rights-of-way and similar encumbrances on real
property imposed by law or arising in the ordinary course of business that do not secure any
monetary obligations and do not materially detract from the value of the affected property
or interfere with the ordinary conduct of business of any Borrower or the Company;

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

     “Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

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

     “Platform” has the meaning specified in Section 6.01.

     “Pro Rata Share” means, with respect to each Lender at any time, a fraction (expressed
as a percentage, carried out to the ninth decimal place), the numerator of which is the amount of
the Commitment of such Lender at such time and the denominator of which is the amount of the
Aggregate Commitments at such time; provided that if the commitment of each Lender to make
Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have been terminated
pursuant to Section 8.02, then the Pro Rata Share of each Lender shall be determined based
on the Pro Rata Share of such Lender immediately prior to such termination and after giving effect
to any subsequent assignments made pursuant to the terms hereof. The initial Pro Rata Share of
each Lender is set forth opposite the name of such Lender on Schedule 2.01 or in the
Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable.

     “Public Lender” has the meaning specified in Section 6.01.

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     “Register” has the meaning specified in Section 10.07(c).

     “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA,
other than events for which the 30 day notice period has been waived.

     “Request for Credit Extension” means (a) with respect to a Borrowing, conversion or
continuation of Committed Loans, a Committed Loan Notice, (b) with respect to a Bid Loan, a Bid
Request and (c) with respect to an L/C Credit Extension, a Letter of Credit Application.

     “Required Lenders” means, as of any date of determination, Lenders having more than
50% of the Aggregate Commitments or, if the commitment of each Lender to make Loans and the
obligation of the L/C Issuer to make L/C Credit Extensions have been terminated pursuant to
Section 8.02, Lenders holding in the aggregate more than 50% of the Total Outstandings
(with the aggregate amount of each Lender’s risk participation and funded participation in L/C
Obligations being deemed “held” by such Lender for purposes of this definition); provided
that the Commitment of, and the portion of the Total Outstandings held or deemed held by, any
Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders. If
the Loans owing hereunder to any Non-Extending Lender have not been paid in full or purchased by
one or more Additional Commitment Lenders on or before such Non-Extending Lender’s Maturity Date,
such Non-Extending Lender shall, solely for purposes of determining the Required Lenders, be deemed
to continue to have a Commitment equal to the principal amount of such Loans until such Loans are
paid in full.

     “Responsible Officer” means the chief executive officer, president, chief financial
officer, principal accounting officer, treasurer, assistant treasurer or controller of a Loan
Party. Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party
shall be conclusively presumed to have been authorized by all necessary corporate, partnership and
other action on the part of such Loan Party and such Responsible Officer shall be conclusively
presumed to have acted on behalf of such Loan Party.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc. and any successor thereto.

     “SAP” means the accounting procedures and practices prescribed or permitted by the
Applicable Insurance Regulatory Authority or the NAIC.

     “SEC” means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

     “Securities Transactions” means (a) securities lending arrangements, and (b)
repurchase and reverse repurchase arrangements with respect to securities and financial
instruments.

     “SPC” has the meaning specified in Section 10.07(h).

     “Statutory Statement” means a statement of the condition and affairs of the Company,
prepared in accordance with SAP, and filed with the Applicable Insurance Regulatory Authority.

     “Subsidiary” of a Person means a corporation, partnership, joint venture, limited
liability company or other business entity of which a majority of the shares of securities or other
interests having ordinary voting power for the election of directors or other governing body (other
than securities or interests having such power only by reason of the happening of a contingency)
are at the time beneficially owned, or the management of which is otherwise controlled, directly,
or indirectly through one or more

Five-Year Credit Agreement

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intermediaries, or both, by such Person. Unless otherwise specified, all references herein to
a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of any Borrower.

     “Support Agreement” means the Support Agreement dated as of November 30, 1984 between
the Company and Funding, as amended and restated effective as of that date on July 2, 1985.

     “Surplus Relief Reinsurance” means any transaction in which the Company or any
Subsidiary of the Company cedes business under a reinsurance agreement that would be considered a
“financing-type” reinsurance agreement as determined by the independent certified public
accountants of the Company in accordance with principles published by the Financial Accounting
Standards Board or the Second Edition of the AICPA Audit Guide for Stock Life Insurance Companies
(pp. 91-92), as the same may be revised from time to time.

     “Swap Contract” means (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), whether or not 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, which 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, or annexes, a “Master Agreement”),
including any such obligations or liabilities under any Master Agreement.

     “Taxes” means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority including penalties,
interest and additions to tax.

     “Total Outstandings” means the aggregate Outstanding Amount of all Loans and all L/C
Obligations.

     “Transactions” means the execution, delivery and performance by the Borrowers of this
Agreement, the Borrowings when made, the issuance of Letters of Credit when issued and the use of
proceeds thereof.

     “Type” means (a) with respect to a Committed Loan, its character as a Base Rate Loan
or a Eurodollar Rate Loan, and (b) with respect to a Bid Loan, its character as an Absolute Rate
Loan or a Eurodollar Margin Bid Loan.

     “United States” and “U.S.” mean the United States of America.

     “Unreimbursed Amount” has the meaning specified in Section 2.04(c)(i).

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

     1.02. Other Interpretive Provisions. With reference to this Agreement and each other Loan
Document, unless otherwise specified herein or in such other Loan Document:

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     (a) The meanings of defined terms are equally applicable to the singular and plural forms of
the defined terms.

     (b) (i) The words “herein,” “hereto,” “hereof” and “hereunder”
and words of similar import when used in any Loan Document shall refer to such Loan Document as a
whole and not to any particular provision thereof.

     (ii) Article, Section, Exhibit and Schedule references are to the Loan Document in which
such reference appears.

     (iii) The term “including” is by way of example and not limitation.

     (iv) The term “documents” includes any and all instruments, documents,
agreements, certificates, notices, reports, financial statements and other writings, however
evidenced, whether in physical or electronic form.

     (c) In the computation of periods of time from a specified date to a later specified date, the
word “from” means “from and including;” the words “to” and “until”
each mean “to but excluding;” and the word “through” means “to and
including.”

     (d) Section headings herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any other Loan
Document.

     1.03. Accounting Terms.

     (a) All accounting terms not specifically or completely defined herein shall be construed in
conformity with, and all financial data required to be submitted pursuant to this Agreement shall
be prepared in conformity with, GAAP or SAP, as the case may be, as in effect from time to time,
applied in a manner consistent with that used in preparing the Audited Financial Statements or
Statutory Statements, as of and for the year ended December 31, 2006, as applicable, except
as otherwise specifically prescribed herein.

     (b) If at any time any change in GAAP or SAP would affect the computation of any requirement
set forth in any Loan Document, and either the Borrowers or the Required Lenders shall so request,
the Administrative Agent, the Lenders and the Borrowers shall negotiate in good faith to amend such
requirement to preserve the original intent thereof in light of such change in GAAP or SAP (subject
to the approval of the Required Lenders); provided that, until so amended, (i) such
requirement shall continue to be computed in accordance with GAAP or SAP, as applicable, as in
effect prior to such change therein and (ii) the Borrowers shall provide to the Administrative
Agent and the Lenders financial statements and other documents required under this Agreement or as
reasonably requested hereunder setting forth a reconciliation between calculations of such
requirement made before and after giving effect to such change in GAAP or SAP.

     1.04. References to Agreements and Laws. Unless otherwise expressly provided herein, (a)
references to agreements (including the Loan Documents) and other contractual instruments shall be
deemed to include all subsequent amendments, restatements, extensions, supplements and other
modifications thereto, but only to the extent that such amendments, restatements, extensions,
supplements and other modifications are not prohibited by any Loan Document; and (b) references to
any Law shall include all statutory and regulatory provisions consolidating, amending, replacing,
supplementing or interpreting such Law.

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     1.05. Days/Times of Day. Unless otherwise specified, (a) all references herein to a day shall be
references to a calendar day, and (b) all references herein to times of day shall be references to
Eastern time (daylight or standard, as applicable).

     1.06. Letter of Credit Amounts. Unless otherwise specified, all references herein to the amount of
a Letter of Credit at any time shall be deemed to mean the maximum face amount of such Letter of
Credit after giving effect to all increases thereof that occur without amendment as the result of
the occurrence of a date, the passage of time or the occurrence or nonoccurrence of an event, as
expressly set forth in such Letter of Credit or the Issuer Documents related thereto, whether or
not such maximum face amount is in effect at such time.

ARTICLE II.

THE COMMITMENTS AND CREDIT EXTENSIONS

     2.01. Committed Loans. Subject to the terms and conditions set forth herein, each Lender severally
agrees to make loans (each such loan, a “Committed Loan”) to the Borrowers from time to
time, on any Business Day during such Lender’s Availability Period, in an aggregate amount not to
exceed at any time outstanding the amount of such Lender’s Commitment; provided,
however, that after giving effect to any Committed Borrowing, (i) the Total Outstandings
shall not exceed the Aggregate Commitments, and (ii) the aggregate Outstanding Amount of the
Committed Loans of any Lender, plus such Lender’s Pro Rata Share of the Outstanding Amount
of all L/C Obligations shall not exceed such Lender’s Commitment. Within the limits of each
Lender’s Commitment, and subject to the other terms and conditions hereof, any Borrower or all
Borrowers may borrow under this Section 2.01, prepay under Section 2.05, and
reborrow under this Section 2.01. Committed Loans may be Base Rate Loans or Eurodollar
Rate Loans, as further provided herein. The obligations of the Borrowers to repay Loans and L/C
Obligations shall be several, not joint.

     2.02. Borrowings, Conversions and Continuations of Committed Loans.

     (a) Each Committed Borrowing, each conversion of Committed Loans from one Type to the other,
and each continuation of Eurodollar Rate Committed Loans shall be made upon a Borrower’s
irrevocable notice to the Administrative Agent, which may be given by telephone. Each such notice
must be received by the Administrative Agent not later than 11:00 a.m. (i) three Business Days
prior to the requested date of any Borrowing of, conversion to or continuation of Eurodollar Rate
Committed Loans or of any conversion of Eurodollar Rate Committed Loans to Base Rate Committed
Loans, and (ii) on the requested date of any Borrowing of Base Rate Committed Loans. Each
telephonic notice by a Borrower pursuant to this Section 2.02(a) must be confirmed promptly
by delivery to the Administrative Agent of a written Committed Loan Notice, appropriately completed
and signed by a Responsible Officer of a Borrower. Each Borrowing of, conversion to or
continuation of Eurodollar Rate Committed Loans shall be in a principal amount of $10,000,000 or a
whole multiple of $1,000,000 in excess thereof. Except as provided in Section 2.04(c),
each Borrowing of or conversion to Base Rate Committed Loans shall be in a principal amount of
$5,000,000 or a whole multiple of $1,000,000 in excess thereof. Each Committed Loan Notice
(whether telephonic or written) shall specify (i) which Borrower is borrowing the Committed
Borrowing, (ii) whether a Borrower is requesting a Committed Borrowing, a conversion of Committed
Loans from one Type to the other, or a continuation of Eurodollar Rate Committed Loans, (iii) the
requested date of the Borrowing, conversion or continuation, as the case may be (which shall be a
Business Day), (iv) the principal amount of Committed Loans to be borrowed, converted or continued,
(v) the Type of Committed Loans to be borrowed or to which existing Committed Loans are to be
converted, and (vi) if applicable, the duration of the Interest Period with respect thereto. If a
Borrower fails to specify a Type of Committed Loan in a Committed Loan Notice or if a Borrower
fails to give a timely notice requesting a conversion or continuation, then the applicable
Committed Loans shall be made as, or

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converted to, Base Rate Loans. Any such automatic conversion to Base Rate Loans shall be
effective as of the last day of the Interest Period then in effect with respect to the applicable
Eurodollar Rate Committed Loans. If a Borrower requests a Borrowing of, conversion to, or
continuation of Eurodollar Rate Committed Loans in any such Committed Loan Notice, but fails to
specify an Interest Period, it will be deemed to have specified an Interest Period of one month.

     (b) Following receipt of a Committed Loan Notice, the Administrative Agent shall promptly
notify each Lender of the amount of its Pro Rata Share of the applicable Committed Loans, and if no
timely notice of a conversion or continuation is provided by the applicable Borrower, the
Administrative Agent shall notify each Lender of the details of any automatic conversion to Base
Rate Loans described in the preceding Subsection. In the case of a Committed Borrowing, each
Lender shall make the amount of its Committed Loan available to the Administrative Agent in
immediately available funds at the Administrative Agent’s Office not later than 1:00 p.m. on the
Business Day specified in the applicable Committed Loan Notice. As promptly as practicable, upon
satisfaction of the applicable conditions set forth in Section 5.02 (and, if such Borrowing
is the initial Credit Extension, Section 5.01), the Administrative Agent shall make all
funds so received available to the applicable Borrower in like funds as received by the
Administrative Agent by either (i) crediting the account of the applicable Borrower on the books of
Bank of America with the amount of such funds or (ii) wire transfer of such funds, in each case in
accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent by
the applicable Borrower; provided, however, that if, on the date the Committed Loan
Notice with respect to such Borrowing is given by a Borrower, there are L/C Borrowings of such
Borrower outstanding, then the proceeds of such Borrowing, first, shall be applied to the
payment in full of any such L/C Borrowings, and second, shall be made available to such
Borrower as provided above.

     (c) Except as otherwise provided herein, a Eurodollar Rate Committed Loan may be continued or
converted only on the last day of an Interest Period for such Eurodollar Rate Committed Loan.
During the existence of a Default, no Loans may be requested as, converted to or continued as
Eurodollar Rate Committed Loans without the consent of the Required Lenders.

     (d) The Administrative Agent shall promptly notify the applicable Borrower and the Lenders of
the interest rate applicable to any Interest Period for Eurodollar Rate Committed Loans upon
determination of such interest rate. The determination of the Eurodollar Rate by the
Administrative Agent shall be conclusive in the absence of manifest error. At any time that Base
Rate Loans are outstanding, the Administrative Agent shall notify the Borrowers and the Lenders of
any change in Bank of America’s prime rate used in determining the Base Rate promptly following the
public announcement of such change.

     (e) After giving effect to all Committed Borrowings, all conversions of Committed Loans from
one Type to the other, and all continuations of Committed Loans of the same Type, there shall not
at any one time be more than ten Interest Periods in effect with respect to Committed Loans.

     2.03. Bid Loans.

     (a) General. Subject to the terms and conditions set forth herein, each Lender agrees
that any Borrower or all Borrowers may from time to time request the Lenders to submit offers to
make loans (each such loan, a “Bid Loan”) to any Borrower or all Borrowers prior to the
last occurring Maturity Date pursuant to this Section 2.03; provided,
however, that after giving effect to any Bid Borrowing, the Total Outstandings shall not
exceed the Aggregate Commitments. There shall not be more than ten different Interest Periods in
effect with respect to Bid Loans at any time.

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     (b) Requesting Competitive Bids. Any Borrower may request the submission of
Competitive Bids by delivering a Bid Request to the Administrative Agent not later than 12:00 noon
(i) one Business Day prior to the requested date of any Bid Borrowing that is to consist of
Absolute Rate Loans or (ii) four Business Days prior to the requested date of any Bid Borrowing
that is to consist of Eurodollar Margin Bid Loans. Each Bid Request shall specify (i) which
Borrower is delivering the Bid Request, (ii) the requested date of the Bid Borrowing (which shall
be a Business Day), (iii) the aggregate principal amount of Bid Loans requested (which must be
$10,000,000 or a whole multiple of $1,000,000 in excess thereof), (iv) the Type of Bid Loans
requested, and (v) the duration of the Interest Period with respect thereto, and shall be signed by
a Responsible Officer of the applicable Borrower. No Bid Request shall contain a request for (i)
more than one Type of Bid Loan or (ii) Bid Loans having more than three different Interest Periods.
Unless the Administrative Agent otherwise agrees in its sole and absolute discretion, no Borrower
may submit a Bid Request if any Borrower has submitted another Bid Request within the prior five
Business Days.

     (c) Submitting Competitive Bids.

     (i) The Administrative Agent shall promptly notify each Lender of each Bid Request
received by it from any Borrower and the contents of such Bid Request.

     (ii) Each Lender may (but shall have no obligation to) submit a Competitive Bid
containing an offer to make one or more Bid Loans in response to such Bid Request. Such
Competitive Bid must be delivered to the Administrative Agent not later than 10:30 a.m. (A)
on the requested date of any Bid Borrowing that is to consist of Absolute Rate Loans, and
(B) three Business Days prior to the requested date of any Bid Borrowing that is to consist
of Eurodollar Margin Bid Loans; provided, however, that any Competitive Bid
submitted by Bank of America in its capacity as a Lender in response to any Bid Request must
be submitted to the Administrative Agent not later than 10:15 a.m. on the date on which
Competitive Bids are required to be delivered by the other Lenders in response to such Bid
Request. Each Competitive Bid shall specify (A) the proposed date of the Bid Borrowing; (B)
the principal amount of each Bid Loan for which such Competitive Bid is being made, which
principal amount (x) may be equal to, greater than or less than the Commitment of the
bidding Lender, (y) must be $5,000,000 or a whole multiple of $1,000,000 in excess thereof,
and (z) may not exceed the principal amount of Bid Loans for which Competitive Bids were
requested; (C) if the proposed Bid Borrowing is to consist of Absolute Rate Bid Loans, the
Absolute Rate offered for each such Bid Loan and the Interest Period applicable thereto; (D)
if the proposed Bid Borrowing is to consist of Eurodollar Margin Bid Loans, the Eurodollar
Bid Margin with respect to each such Eurodollar Margin Bid Loan and the Interest Period
applicable thereto; and (E) the identity of the bidding Lender.

     (iii) Any Competitive Bid shall be disregarded if it (A) is received after the
applicable time specified in clause (ii) above, (B) is not substantially in the form of a
Competitive Bid as specified herein, (C) contains qualifying, conditional or similar
language, (D) proposes terms other than or in addition to those set forth in the applicable
Bid Request, or (E) is otherwise not responsive to such Bid Request. Any Lender may correct
a Competitive Bid containing a manifest error by submitting a corrected Competitive Bid
(identified as such) not later than the applicable time required for submission of
Competitive Bids. Any such submission of a corrected Competitive Bid shall constitute a
revocation of the Competitive Bid that contained the manifest error. The Administrative
Agent may, but shall not be required to, notify any Lender of any manifest error it detects
in such Lender’s Competitive Bid.

     (iv) Subject only to the provisions of Sections 3.02, 3.03 and
5.02 and clause (iii) above, each Competitive Bid shall be irrevocable.

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     (d) Notice to Borrower of Competitive Bids. Not later than 11:00 a.m. (i) on the
requested date of any Bid Borrowing that is to consist of Absolute Rate Loans, or (ii) three
Business Days prior to the requested date of any Bid Borrowing that is to consist of Eurodollar
Margin Bid Loans, the Administrative Agent shall notify the applicable Borrower of the identity of
each Lender that has submitted a Competitive Bid that complies with Section 2.03(c) and of
the terms of the offers contained in each such Competitive Bid.

     (e) Acceptance of Competitive Bids. Not later than 11:30 a.m. (i) on the requested
date of any Bid Borrowing that is to consist of Absolute Rate Loans, and (ii) three Business Days
prior to the requested date of any Bid Borrowing that is to consist of Eurodollar Margin Bid Loans,
the applicable Borrower shall notify the Administrative Agent of its acceptance or rejection of the
offers notified to it pursuant to Section 2.03(d). The applicable Borrower shall be under
no obligation to accept any Competitive Bid and may choose to reject all Competitive Bids. In the
case of acceptance, such notice shall specify the aggregate principal amount of Competitive Bids
for each Interest Period that is accepted. The applicable Borrower may accept any Competitive Bid
in whole or in part; provided that:

     (i) the aggregate principal amount of each Bid Borrowing may not exceed the applicable
amount set forth in the related Bid Request;

     (ii) the principal amount of each Bid Loan must be $5,000,000 or a whole multiple of
$1,000,000 in excess thereof; and

     (iii) the acceptance of offers may be made only on the basis of ascending Absolute
Rates or Eurodollar Bid Margins within each Interest Period accepted, beginning with the
shortest Interest Period accepted.

     (f) Procedure for Identical Bids. If two or more Lenders have submitted Competitive
Bids at the same Absolute Rate or Eurodollar Bid Margin, as the case may be, for the same Interest
Period, and the result of accepting all of such Competitive Bids in whole (together with any other
Competitive Bids at lower Absolute Rates or Eurodollar Bid Margins, as the case may be, accepted
for such Interest Period in conformity with the requirements of Section 2.03(e)(iii)) would
be to cause the aggregate outstanding principal amount of the applicable Bid Borrowing to exceed
the amount specified therefor in the related Bid Request, then, unless otherwise agreed by the
applicable Borrower, the Administrative Agent and such Lenders, such Competitive Bids shall be
accepted as nearly as possible in proportion to the amount offered by each such Lender in respect
of such Interest Period, with such accepted amounts being rounded to the nearest whole multiple of
$1,000,000.

     (g) Notice to Lenders of Acceptance or Rejection of Bids. The Administrative Agent
shall promptly notify each Lender having submitted a Competitive Bid whether or not its offer has
been accepted and, if its offer has been accepted, of the amount of the Bid Loan or Bid Loans to be
made by it on the date of the applicable Bid Borrowing. Any Competitive Bid or portion thereof
that is not accepted by the applicable Borrower by the applicable time specified in Section
2.03(e) shall be deemed rejected.

     (h) Notice of Eurodollar Base Rate. If any Bid Borrowing is to consist of Eurodollar
Margin Bid Loans, the Administrative Agent shall determine the Eurodollar Base Rate for the
relevant Interest Period, and promptly after making such determination, shall notify the applicable
Borrower and the Lenders that will be participating in such Bid Borrowing of such Eurodollar Base
Rate.

     (i) Funding of Bid Loans. Each Lender that has received notice pursuant to
Section 2.03(g) that all or a portion of its Competitive Bid has been accepted by the
applicable Borrower shall make the amount of its Bid Loan(s) available to the Administrative Agent
in immediately available funds at the

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Administrative Agent’s Office not later than 12:00 (noon) on the date of the requested Bid
Borrowing. Upon satisfaction of the applicable conditions set forth in Section 5.02 (and,
if such Borrowing is the initial Credit Extension hereunder, Section 5.01), the
Administrative Agent shall make all funds so received available to the applicable Borrower in like
funds as received by the Administrative Agent.

     (j) Notice of Range of Bids. After each Competitive Bid auction pursuant to this
Section 2.03, the Administrative Agent shall notify each Lender that submitted a
Competitive Bid in such auction of the ranges of bids submitted (without the bidder’s name) and
accepted for each Bid Loan and the aggregate amount of each Bid Borrowing.

     2.04. Letters of Credit.

     (a) The Letter of Credit Commitment.

     (i) Subject to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in
reliance upon the agreements of the other Lenders set forth in this Section 2.04,
(1) from time to time on any Business Day during the period from the Closing Date until the
date that is seven days prior to the last occurring Maturity Date, to issue Letters of
Credit for the account of any Borrower or its Subsidiaries, and to amend or extend Letters
of Credit previously issued by it, provided, however, that the L/C Issuer
may amend or extend after the last occurring Maturity Date any Letters of Credit issued by
it on or before the last occurring Maturity Date, in accordance with Subsection (b) below,
provided that no such extension shall extend the expiry date of any Letter of Credit
beyond the date that is twelve months after the last occurring Maturity Date and no such
amendment shall increase the amount available under any Letter of Credit, and (2) to honor
drawings under the Letters of Credit; and (B) the Lenders severally agree to participate in
Letters of Credit issued for the account of any Borrower or its Subsidiaries and any
drawings thereunder; provided that after giving effect to any L/C Credit Extension
with respect to any Letter of Credit, (x) the Total Outstandings shall not exceed the
Aggregate Commitments, and (y) the aggregate Outstanding Amount of the Committed Loans of
any Lender, plus such Lender’s Pro Rata Share of the Outstanding Amount of all L/C
Obligations shall not exceed such Lender’s Commitment. Each request by a Borrower for the
issuance or amendment or extension of a Letter of Credit shall be deemed to be a
representation by such Borrower that the L/C Credit Extension so requested complies with the
conditions set forth in the proviso to the preceding sentence. Within the foregoing limits,
and subject to the terms and conditions hereof, the Borrowers’ ability to obtain Letters of
Credit shall be fully revolving, and accordingly the Borrowers may, during the foregoing
period, obtain Letters of Credit to replace Letters of Credit that have expired or that have
been drawn upon and reimbursed. All Existing Letters of Credit shall be deemed to have been
issued pursuant hereto, and from and after the Closing Date shall be subject to and
governed by the terms and conditions hereof.

     (ii) The L/C Issuer shall not issue any Letter of Credit, if:

     (A) subject to Section 2.04(b)(iii), the expiry date of such requested
Letter of Credit would occur more than twelve months after the date of issuance or
last extension, unless the Required Lenders have approved such expiry date; or

     (B) the expiry date of such requested Letter of Credit would occur more than
twelve months after the last occurring Maturity Date, unless all the Lenders have
approved such expiry date;

     (iii) The L/C Issuer shall not be under any obligation to issue any Letter of Credit
if:

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     (A) any order, judgment or decree of any Governmental Authority or arbitrator
shall by its terms purport to enjoin or restrain the L/C Issuer from issuing such
Letter of Credit, or any Law applicable to the L/C Issuer or any request or
directive (whether or not having the force of law) from any Governmental Authority
with jurisdiction over the L/C Issuer shall prohibit, or request that the L/C Issuer
refrain from, the issuance of letters of credit generally or such Letter of Credit
in particular or shall impose upon the L/C Issuer with respect to such Letter of
Credit any restriction, reserve or capital requirement (for which the L/C Issuer is
not otherwise compensated hereunder) not in effect on the Closing Date, or shall
impose upon the L/C Issuer any unreimbursed loss, cost or expense which was not
applicable on the Closing Date and which the L/C Issuer in good faith deems material
to it;

     (B) the issuance of such Letter of Credit would violate one or more policies of
the L/C Issuer applicable to letters of credit generally;

     (C) after the issuance of such Letter of Credit, more than sixty Letters of
Credit would be outstanding unless the Borrowers and the Required Lenders otherwise
agree;

     (D) such Letter of Credit is to be denominated in a currency other than
Dollars;

     (E) such Letter of Credit contains any provisions for automatic reinstatement
of the stated amount after any drawing thereunder; or

     (F) a default of any Lender’s obligations to fund under Section 2.04(c)
exists or any Lender is at such time a Defaulting Lender hereunder, unless the L/C
Issuer has entered into satisfactory arrangements with the Borrowers or such Lender
to eliminate the L/C Issuer’s risk with respect to such Lender.

     (iv) The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would not be
permitted at such time to issue such Letter of Credit in its amended form under the terms
hereof.

     (v) The L/C Issuer shall be under no obligation to amend any Letter of Credit if (A)
the L/C Issuer would have no obligation at such time to issue such Letter of Credit in its
amended form under the terms hereof, or (B) the beneficiary of such Letter of Credit does
not accept the proposed amendment to such Letter of Credit.

     (b) Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of
Credit.

     (i) Each Letter of Credit shall be issued or amended, as the case may be, upon the
request of a Borrower, and, if a Subsidiary (other than Funding) is an Applicant, such
Subsidiary by the delivery to the L/C Issuer (with a copy to the Administrative Agent) of a
writing in the form of a Letter of Credit Application, appropriately completed and signed by
a Responsible Officer of the applicable Borrower and, if a Subsidiary (other than Funding)
is an Applicant, such Subsidiary. Such Letter of Credit Application must be received by the
L/C Issuer and the Administrative Agent not later than 11:00 a.m. at least five Business
Days prior to the proposed issuance date or date of amendment (or such shorter time as the
Administrative Agent and the L/C Issuer may agree in a particular instance in their sole
discretion), as the case may be. In the

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case of a request for an initial issuance of a Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to the L/C Issuer: (A) who is the
Applicant and, if the Applicant is not a Borrower, which Borrower is the Co-Applicant; (B)
the proposed issuance date of the requested Letter of Credit (which shall be a Business
Day); (C) the amount thereof; (D) the expiry date thereof; (E) the name and address of the
beneficiary thereof; (F) the documents to be presented by such beneficiary in case of any
drawing thereunder; (G) the full text of any certificate to be presented by such beneficiary
in case of any drawing thereunder; (H) the purpose and nature of the requested Letter of
Credit, and (I) such other matters as the L/C Issuer may reasonably require. In the case of
a request for an amendment of any outstanding Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to the L/C Issuer (w) the Letter
of Credit to be amended; (x) the proposed date of amendment thereof (which shall be a
Business Day); (y) the nature of the proposed amendment; and (z) such other matters as the
L/C Issuer may reasonably require. Additionally, the Applicant shall furnish to the L/C
Issuer and the Administrative Agent such other documents and information pertaining to such
requested Letter of Credit issuance or amendment, including any Issuer Documents, as the L/C
Issuer or the Administrative Agent may reasonably require.

     (ii) Promptly after receipt of any Letter of Credit Application, the L/C Issuer will
confirm with the Administrative Agent (by telephone or in writing) that the Administrative
Agent has received a copy of such Letter of Credit Application from the Applicant and, if
applicable, the Co-Applicant and, if not, the L/C Issuer will provide the Administrative
Agent with a copy thereof. Unless the L/C Issuer has received written notice from any
Lender, the Administrative Agent or any Loan Party, at least one Business Day prior to the
requested date of issuance or amendment of the applicable Letter of Credit, that one or more
applicable conditions contained in Article V shall not then be satisfied, then,
subject to the terms and conditions hereof, the L/C Issuer shall, on the requested date,
issue a Letter of Credit for the account of the applicable Borrower (or the applicable
Subsidiary) or enter into the applicable amendment, as the case may be, in each case in
accordance with the L/C Issuer’s usual and customary business practices. Immediately upon
the issuance of each Letter of Credit, each Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the L/C Issuer a risk participation
in such Letter of Credit in an amount equal to the product of such Lender’s Pro Rata Share
times the amount of such Letter of Credit.

     (iii) If an Applicant so requests in any applicable Letter of Credit Application, the
L/C Issuer may, in its sole and absolute discretion, agree to issue or amend a Letter of
Credit (including any Existing Letter of Credit) to provide for automatic extension
provisions (each, an “Auto-Extension Letter of Credit”); provided that any
such Auto-Extension Letter of Credit must permit the L/C Issuer to prevent any such
extension at least once in each twelve-month period (commencing with the date of issuance or
amendment of such Letter of Credit) by giving prior notice to the beneficiary thereof not
later than a day (the “Non-Extension Notice Date”) in each such twelve-month period
to be agreed upon at the time such Letter of Credit is issued or amended. Unless otherwise
directed by the L/C Issuer, the Applicant (or, if applicable, the Co-Applicant) shall not be
required to make a specific request to the L/C Issuer for any such extension. Once an
Auto-Extension Letter of Credit has been issued, the Lenders shall be deemed to have
authorized (but may not require) the L/C Issuer to permit the extension of such Letter of
Credit at any time to an expiry date not later than twelve months after the last occurring
Maturity Date; provided, however, that the L/C Issuer shall not permit any
such extension if (A) the L/C Issuer has determined that it would not be permitted, or would
have no obligation, at such time to issue such Letter of Credit in its revised form (as
extended) under the terms hereof (by reason of the provisions of clause (ii) or (iii) of
Section 2.04(a) or otherwise), or (B) it has received notice (which may be by
telephone or in writing) on or before the day that is five

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Business Days before the Non-Extension Notice Date (1) from the Administrative Agent
that the Required Lenders have elected not to permit such extension or (2) from the
Administrative Agent, any Lender or any Loan Party that one or more of the applicable
conditions specified in Section 5.02 is not then satisfied, and in each such case
directing the L/C Issuer not to permit such extension.

     (iv) Promptly after its delivery of any Letter of Credit or any amendment to a Letter
of Credit to an advising bank with respect thereto or to the beneficiary thereof, the L/C
Issuer will also deliver to the applicable Borrower and the Administrative Agent a true and
complete copy of such Letter of Credit or amendment. Within 15 days after the end of each
calendar month, the Administrative Agent will deliver to each of the Lenders and the
Borrowers a written report setting forth the Letters of Credit that were issued and
outstanding as of the last day of such calendar month.

     (c) Drawings and Reimbursements; Funding of Participations.

     (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of a
drawing under such Letter of Credit, the L/C Issuer shall notify the applicable Borrower and
the Administrative Agent thereof and of the date (the “Honor Date”) on which the L/C
Issuer anticipates that payment of such drawing will be made. Not later than 11:00 a.m. on
the Honor Date, the applicable Borrower shall reimburse the L/C Issuer through the
Administrative Agent in an amount equal to the amount of such drawing. If the applicable
Borrower fails to so reimburse the L/C Issuer by such time, the Administrative Agent shall
promptly notify each Lender of the Honor Date, the amount of the unreimbursed drawing (the
“Unreimbursed Amount”), and the amount of such Lender’s Pro Rata Share thereof. In
such event, the applicable Borrower shall be deemed to have requested a Committed Borrowing
of Base Rate Loans to be disbursed on the Honor Date in an amount equal to the Unreimbursed
Amount, without regard to the minimum and multiples specified in Section 2.02 for
the principal amount of Base Rate Loans, but subject to the amount of the unutilized portion
of the Aggregate Commitments and the conditions set forth in Section 5.02 (other
than the delivery of a Committed Loan Notice). Any notice given by the L/C Issuer or the
Administrative Agent pursuant to this Section 2.04(c)(i) may be given by telephone
if immediately confirmed in writing; provided that the lack of such an immediate
confirmation shall not affect the conclusiveness or binding effect of such notice. Each
deemed Committed Borrowing made pursuant to this Section 2.04(c)(i) shall be deemed
to be a reimbursement of the related drawing under a Letter of Credit.

     (ii) Each Lender (including the Lender acting as L/C Issuer) shall upon any notice
pursuant to Section 2.04(c)(i) make funds available to the Administrative Agent for
the account of the L/C Issuer at the Administrative Agent’s Office in an amount equal to its
Pro Rata Share of the Unreimbursed Amount not later than 1:00 p.m. on the Business Day
specified in such notice by the Administrative Agent, whereupon, subject to the provisions
of Section 2.04(c)(iii), each Lender that so makes funds available shall be deemed
to have made a Base Rate Committed Loan to the applicable Borrower in such amount. The
Administrative Agent shall remit the funds so received to the L/C Issuer.

     (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a
Committed Borrowing of Base Rate Loans because the conditions set forth in Section
5.02 cannot be satisfied or for any other reason, the applicable Borrower shall be
deemed to have incurred from the L/C Issuer an L/C Borrowing in the amount of the
Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due and payable
on demand (together with interest) and shall bear interest at the Default Rate. In such
event, each Lender’s payment to the

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Administrative Agent for the account of the L/C Issuer pursuant to Section
2.04(c)(ii) shall be deemed payment in respect of its participation in such L/C
Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its
participation obligation under this Section 2.04.

     (iv) Until a Lender funds its Committed Loan or L/C Advance pursuant to this
Section 2.04(c) to reimburse the L/C Issuer for any amount drawn under any Letter of
Credit, interest in respect of such Lender’s Pro Rata Share of such amount shall be solely
for the account of the L/C Issuer.

     (v) Each Lender’s obligation to make Committed Loans or L/C Advances to reimburse the
L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section
2.04(c), shall be absolute and unconditional and shall not be affected by any
circumstance, including (A) any set-off, counterclaim, recoupment, defense or other right
which such Lender may have against the L/C Issuer, any Borrower, any other Applicant or any
other Person for any reason whatsoever; (B) the occurrence or continuance of a Default, or
(C) any other occurrence, event or condition, whether or not similar to any of the
foregoing; provided, however, that each Lender’s obligation to make
Committed Loans pursuant to this Section 2.04(c) is subject to the conditions set
forth in Section 5.02 (other than delivery by the applicable Borrower of a Committed
Loan Notice). No such making of an L/C Advance shall relieve or otherwise impair the
obligation of the applicable Borrower to reimburse the L/C Issuer for the amount of any
payment made by the L/C Issuer under any Letter of Credit, together with interest as
provided herein.

     (vi) If any Lender fails to make available to the Administrative Agent for the account
of the L/C Issuer any amount required to be paid by such Lender pursuant to the foregoing
provisions of this Section 2.04(c) by the time specified in Section
2.04(c)(ii), the L/C Issuer shall be entitled to recover from such Lender (acting
through the Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment is required to the date on which such payment is
immediately available to the L/C Issuer at a rate per annum equal to the Federal Funds Rate
from time to time in effect. A certificate of the L/C Issuer submitted to any Lender
(through the Administrative Agent) with respect to any amounts owing under this clause (vi)
shall be conclusive absent manifest error.

     (d) Repayment of Participations.

     (i) At any time after the L/C Issuer has made a payment under any Letter of Credit and
has received from any Lender such Lender’s L/C Advance in respect of such payment in
accordance with Section 2.04(c), if the Administrative Agent receives for the
account of the L/C Issuer any payment in respect of the related Unreimbursed Amount or
interest thereon (whether directly from the applicable Borrower or otherwise, including
proceeds of Cash Collateral applied thereto by the Administrative Agent), the Administrative
Agent will distribute to such Lender its Pro Rata Share thereof (appropriately adjusted, in
the case of interest payments, to reflect the period of time during which such Lender’s L/C
Advance was outstanding) in the same funds as those received by the Administrative Agent.

     (ii) If any payment received by the Administrative Agent for the account of the L/C
Issuer pursuant to Section 2.04(c)(i) is required to be returned under any of the
circumstances described in Section 10.06 (including pursuant to any settlement
entered into by the L/C Issuer in its discretion), each Lender shall pay to the
Administrative Agent for the account of the L/C Issuer its Pro Rata Share thereof on demand
of the Administrative Agent, plus interest thereon

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from the date of such demand to the date such amount is returned by such Lender, at a
rate per annum equal to the Federal Funds Rate from time to time in effect.

     (e) Obligations Absolute. The obligation of the applicable Borrower to reimburse the
L/C Issuer for each drawing under each Letter of Credit and to repay each L/C Borrowing shall be
absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of
this Agreement under all circumstances, including the following:

     (i) any lack of validity or enforceability of such Letter of Credit, this Agreement, or
any other Loan Document;

     (ii) the existence of any claim, counterclaim, set-off, defense or other right that
such Borrower or any Subsidiary may have at any time against any beneficiary or any
transferee of such Letter of Credit (or any Person for whom any such beneficiary or any such
transferee may be acting), the L/C Issuer or any other Person, whether in connection with
this Agreement, the transactions contemplated hereby or by such Letter of Credit or any
agreement or instrument relating thereto, or any unrelated transaction;

     (iii) any draft, demand, certificate or other document presented under such Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any
statement therein being untrue or inaccurate in any respect; or any loss or delay in the
transmission or otherwise of any document required in order to make a drawing under such
Letter of Credit;

     (iv) any payment made by the L/C Issuer under such Letter of Credit to any Person
purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of
creditors, liquidator, receiver or other representative of or successor to any beneficiary
or any transferee of such Letter of Credit, including any arising in connection with any
proceeding under any Debtor Relief Law; or

     (v) any other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, including any other circumstance that might otherwise constitute a defense
available to, or a discharge of, such Borrower or any Subsidiary.

     Each Borrower and any other Applicant shall promptly examine a copy of each Letter of Credit
and each amendment thereto requested by such Borrower and such Applicant that is delivered to it
and, in the event of any claim of noncompliance with such Borrower’s or such Applicant’s
instructions or other irregularity, such Borrower or such Applicant will notify the L/C Issuer as
promptly as practicable. Such Borrower and such Applicant shall be conclusively deemed to have
waived any such claim against the L/C Issuer and its correspondents unless such notice is given as
aforesaid. No Letter of Credit will be amended without written approval of the applicable Borrower
and the L/C Issuer.

     (f) Role of L/C Issuer. Each Lender and each Borrower agree that, in paying any
drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any
document (other than any sight draft, certificates and documents expressly required by the Letter
of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the
authority of the Person executing or delivering any such document. None of the L/C Issuer, any
Agent-Related Person or any of the respective correspondents, participants or assignees of the L/C
Issuer shall be liable to any Lender for (i) any action taken or omitted in connection herewith at
the request or with the approval of the Lenders or the Required Lenders, as applicable; (ii) any
action taken or omitted in the absence of gross negligence or willful misconduct; or (iii) the due
execution, effectiveness, validity or enforceability of any document or instrument related to any
Letter of Credit or Letter of Credit Application. Each Borrower and any other

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Applicant hereby assumes all risks of the acts or omissions of any beneficiary or transferee
with respect to its use of any Letter of Credit; provided, however, that this
assumption is not intended to, and shall not, preclude such Borrower’s pursuing such rights and
remedies as it may have against the beneficiary or transferee at law or under any other agreement.
None of the L/C Issuer, any Agent-Related Person or any of the respective correspondents,
participants or assignees of the L/C Issuer shall be liable or responsible for any of the matters
described in clauses (i) through (v) of Section 2.04(e); provided, however,
that anything in such clauses to the contrary notwithstanding, the applicable Borrower and any
other Applicant may have a claim against the L/C Issuer, and the L/C Issuer may be liable to such
Borrower and such Applicant, to the extent, but only to the extent, of any direct, as opposed to
consequential or exemplary, damages suffered by such Borrower or such Applicant which such Borrower
or such Applicant proves were caused primarily by the L/C Issuer’s willful misconduct or gross
negligence or the L/C Issuer’s willful failure to pay under any Letter of Credit after the
presentation to it by the beneficiary of a sight draft and certificate(s) strictly complying with
the terms and conditions of a Letter of Credit. In furtherance and not in limitation of the
foregoing, the L/C Issuer may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or information to the contrary,
and the L/C Issuer shall not be responsible for the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign a Letter of Credit or the rights or
benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or
ineffective for any reason.

     (g) Cash Collateral. Upon the request of the Administrative Agent, (i) if the L/C
Issuer has honored any full or partial drawing request under any Letter of Credit and such drawing
has resulted in an L/C Borrowing, or (ii) if, as of the date that is twelve months after the last
occurring Maturity Date, any Letter of Credit for any reason remains outstanding and partially or
wholly undrawn, the applicable Borrower shall immediately Cash Collateralize the then Outstanding
Amount of all L/C Obligations (in an amount equal to such Outstanding Amount determined as of the
date of such L/C Borrowing or the date that is twelve months after the last occurring Maturity
Date, as the case may be). Sections 2.05 and 8.02(c) set forth certain additional
requirements to deliver Cash Collateral hereunder. For purposes of this Section 2.04,
Section 2.05 and Section 8.02(c), “Cash Collateralize” means to pledge and
deposit with or deliver to the Administrative Agent, for the benefit of the L/C Issuer and the
Lenders, as collateral for the L/C Obligations, cash or deposit account balances pursuant to
documentation in form and substance satisfactory to the Administrative Agent and the L/C Issuer
(which documents are hereby consented to by the Lenders). Derivatives of such term have
corresponding meanings. Each Borrower hereby grants to the Administrative Agent, for the benefit
of the L/C Issuer and the Lenders, a security interest in all such cash, deposit accounts and all
balances therein and all proceeds of the foregoing delivered by such Borrower as Cash Collateral.
Cash Collateral shall be maintained in a blocked, non-interest bearing deposit account at Bank of
America.

     (h) Applicability of ISP98. Unless otherwise expressly agreed by the L/C Issuer and
the applicable Borrower when a Letter of Credit is issued, the rules of the ISP shall apply to
each.

     (i) Letter of Credit Fees. Each Borrower shall pay to the Administrative Agent for
the account of each Lender in accordance with its Pro Rata Share a Letter of Credit fee (the
“Letter of Credit Fee”) for each Letter of Credit issued for the account of such Borrower
equal to the Applicable Rate (converted to a daily rate) times the daily maximum amount
available to be drawn under such Letter of Credit. Letter of Credit Fees shall be (i) computed on
a quarterly basis in arrears and (ii) due and payable on the last Business Day of each March, June,
September and December, commencing with the first such date to occur after the issuance of such
Letter of Credit, on each Maturity Date, on the date that is twelve months after the last occurring
Maturity Date and thereafter on demand. If there is any change in the Applicable Rate during any
quarter, the daily maximum amount of each Letter of Credit shall be computed and multiplied by the
Applicable Rate separately for each period during such quarter that such

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Applicable Rate was in effect. Notwithstanding anything to the contrary contained herein,
upon the request of the Required Lenders, while any Event of Default exists, all Letter of Credit
Fees shall accrue at the Default Rate.

     (j) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer. Each
Borrower shall pay directly to the L/C Issuer for its own account a fronting fee (converted to a
daily rate) with respect to each Letter of Credit with respect to which it is the Applicant or the
Co-Applicant in the amount specified in the Fee Letter, payable on the actual daily maximum amount
available to be drawn under such Letter of Credit. Such fronting fee shall be computed on a
quarterly basis in arrears. Such fronting fee shall be due and payable on the tenth Business Day
after the end of each March, June, September and December in respect of the most recently-ended
quarterly period (or portion thereof, in the case of the first payment), commencing with the first
such date to occur after the issuance of such Letter of Credit, on the last occurring Maturity
Date, on the date that is twelve months after the last occurring Maturity Date and thereafter on
demand. In addition, each Borrower shall pay directly to the L/C Issuer for its own account the
customary issuance, presentation, amendment and other processing fees, and other standard costs and
charges, of the L/C Issuer relating to each Letter of Credit for which such Borrower is the
Applicant or Co-Applicant as from time to time in effect.

     (k) Conflict with Issuer Documents. In the event of any conflict between the terms
hereof and the terms of any Issuer Document, the terms hereof shall control.

     (l) Letters of Credit Issued for Subsidiaries. Notwithstanding that a Letter of
Credit issued or outstanding hereunder is in support of any obligations of, or is for the account
of, a Subsidiary, the Borrower which is the Co-Applicant with respect to such Letter of Credit
shall be obligated to reimburse the L/C Issuer hereunder for any and all drawings under such Letter
of Credit. Each Borrower hereby acknowledges that the issuance of Letters of Credit for the
account of its Subsidiaries inures to the benefit of such Borrower, and that such Borrower’s
business derives substantial benefits from the businesses of such Subsidiaries.

     2.05. Prepayments.

     (a) Any Borrower may, upon notice to the Administrative Agent, at any time or from time to
time voluntarily prepay Committed Loans in whole or in part without premium or penalty;
provided that (i) such notice must be received by the Administrative Agent not later than
11:00 a.m. (A) three Business Days prior to any date of prepayment of Eurodollar Rate Committed
Loans and (B) on the date of prepayment of Base Rate Committed Loans; (ii) any prepayment of
Eurodollar Rate Committed Loans shall be in a principal amount of $10,000,000 or a whole multiple
of $1,000,000 in excess thereof; and (iii) any prepayment of Base Rate Committed Loans shall be in
a principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof or, in each
case, if less, the entire principal amount thereof then outstanding. Each such notice shall
specify the date and amount of such prepayment and the Type(s) of Committed Loans to be prepaid.
The Administrative Agent will promptly notify each Lender of its receipt of each such notice, and
of the amount of such Lender’s Pro Rata Share of such prepayment. If such notice is given by any
Borrower, such Borrower shall make such prepayment and the payment amount specified in such notice
shall be due and payable on the date specified therein. Any prepayment of a Eurodollar Rate Loan
shall be accompanied by all accrued interest thereon, together with any additional amounts required
pursuant to Section 3.05. Each such prepayment shall be applied to the Committed Loans of
the Lenders in accordance with their respective Pro Rata Shares.

     (b) No Bid Loan may be prepaid without the prior consent of the applicable Bid Loan Lender.

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     (c) If for any reason the Total Outstandings at any time exceed the Aggregate Commitments then
in effect, the Borrowers shall immediately prepay Loans and/or Cash Collateralize the L/C
Obligations in an aggregate amount equal to such excess; provided, however, that no
Borrower shall be required to Cash Collateralize the L/C Obligations pursuant to this Section
2.05(c) unless after the prepayment in full of the Committed Loans the Total Outstandings
exceed the Aggregate Commitments then in effect.

     (d) Upon the occurrence of a Change in Control, each Borrower agrees that if requested by the
Administrative Agent (acting at the request of the Required Lenders) such Borrower will promptly
prepay its Loans, together with accrued interest and will promptly Cash Collateralize its L/C
Obligations; provided that no prepayment of any Bid Loan shall be made without the prior
consent of the Lender thereof. Upon such prepayment, the Aggregate Commitments and the Commitment
of each Lender shall automatically terminate.

     2.06. Termination or Reduction of Commitments. The Borrowers may, upon notice to the
Administrative Agent, terminate the Aggregate Commitments and this Agreement, or from time to time
permanently reduce the Aggregate Commitments; provided that (i) any such notice shall be
received by the Administrative Agent not later than 11:00 a.m. three Business Days prior to the
date of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount
of $10,000,000 or any whole multiple of $1,000,000 in excess thereof, and (iii) the Borrowers shall
not terminate or reduce the Aggregate Commitments if, after giving effect thereto and to any
concurrent prepayments hereunder, the Total Outstandings would exceed the Aggregate Commitments.
The Administrative Agent will promptly notify the Lenders of any such notice of termination or
reduction of the Aggregate Commitments. Any reduction of the Aggregate Commitments shall be
applied to the Commitment of each Lender according to its Pro Rata Share. All fees accrued until
the effective date of any termination of the Aggregate Commitments shall be paid on the effective
date of such termination.

     2.07. Repayment of Loans.

     (a) Each Borrower shall repay to each Lender on the Maturity Date of such Lender the aggregate
principal amount of its Committed Loans outstanding on such date.

     (b) Each Borrower shall repay each of its Bid Loans on the last day of the Interest Period in
respect thereof.

     2.08. Interest.

     (a) Subject to the provisions of Subsection (b) below, (i) each Eurodollar Rate Committed Loan
shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate
per annum equal to the Eurodollar Rate for such Interest Period plus the Applicable Rate;
(ii) each Base Rate Committed Loan shall bear interest on the outstanding principal amount thereof
from the applicable borrowing date at a rate per annum equal to the Base Rate plus the
Applicable Rate; and (iii) each Bid Loan shall bear interest on the outstanding principal amount
thereof for the Interest Period therefor at a rate per annum equal to the Eurodollar Base Rate for
such Interest Period plus (or minus) the Eurodollar Bid Margin, or at the Absolute Rate for such
Interest Period, as the case may be.

     (b) (i) If any amount of principal of any Loan is not paid when due (without regard to any
applicable grace periods), whether at stated maturity, by acceleration or otherwise, such amount
shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the
Default Rate to the fullest extent permitted by applicable Laws.

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     (ii) If any amount (other than principal of any Loan) payable by any Borrower under any
Loan Document is not paid when due (after any applicable grace periods), whether at stated
maturity, by acceleration or otherwise, then, upon the request of the Required Lenders, such
amount shall thereafter bear interest at a fluctuating interest rate per annum at all times
equal to the Default Rate to the fullest extent permitted by applicable Laws.

     (iii) Upon the request of the Required Lenders, while any Event of Default exists, each
Borrower shall pay interest on the principal amount of all its outstanding Obligations
hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to
the fullest extent permitted by applicable Laws.

     (iv) Accrued and unpaid interest on past due amounts (including interest on past due
interest) shall be due and payable upon demand.

     (c) Interest on each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein. Interest hereunder shall be
due and payable in accordance with the terms hereof before and after judgment, and before and after
the commencement of any proceeding under any Debtor Relief Law.

     2.09. Fees. In addition to certain fees described in Subsections (i) and (j) of Section
2.04:

     (a) Facility Fee. The Borrowers, jointly and severally, agree to pay to the
Administrative Agent for the account of each Lender in accordance with its Pro Rata Share, a
facility fee equal to the Applicable Rate times the actual daily amount of the Aggregate
Commitments (or, if the Aggregate Commitments have terminated, on the Outstanding Amount of all
Committed Loans and L/C Obligations), regardless of usage. The facility fee shall accrue at all
times during the Availability Period (and thereafter so long as any Committed Loans or L/C
Obligations remain outstanding), including at any time during which one or more of the conditions
in Article V is not met, and shall be due and payable quarterly in arrears on the last
Business Day of each March, June, September and December, commencing with the first such date to
occur after the Closing Date, on each Maturity Date and on the date that is twelve months after the
last occurring Maturity Date (and, if applicable, thereafter on demand). The facility fee shall be
calculated quarterly in arrears, and if there is any change in the Applicable Rate during any
quarter, the actual daily amount shall be computed and multiplied by the Applicable Rate separately
for each period during such quarter that such Applicable Rate was in effect.

     (b) Utilization Fee. Each Borrower shall pay to the Administrative Agent for the
account of each Lender in accordance with its Pro Rata Share, a utilization fee equal to the
Applicable Rate (converted to a daily rate) times the Total Outstandings with respect to
Loans made to it and L/C Outstandings with respect to Letters of Credit for which it was the
Applicant or Co-Applicant on each day that the Total Outstandings of all Loans and L/C Obligations
exceed 50% of the actual daily amount of the Aggregate Commitments then in effect (or, if
terminated, in effect immediately prior to such termination); provided that the utilization fee
shall be payable after the last occurring Maturity Date only in respect of any day that the
Outstanding Amount of Loans and L/C Borrowings on such day exceeds 50% of the amount of the
Aggregate Commitments in effect immediately prior to the expiration of the Availability Period.
The utilization fee shall be due and payable quarterly in arrears on the last Business Day of each
March, June, September and December, commencing with the first such date to occur after the Closing
Date and on each Maturity Date (and, if applicable, thereafter on demand). The utilization fee
shall be calculated quarterly in arrears and if there is any change in the Applicable Rate during
any quarter, the daily amount shall be computed and multiplied by the Applicable Rate for each
period during which such Applicable Rate was in effect. The utilization fee shall accrue at all
times, including at any time during which one or more of the conditions in Article V is not
met.

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     (c) Other Fees. The Borrowers shall pay to Banc of America Securities LLC and the
Administrative Agent for their own respective accounts fees in the amounts and at the times
specified in the Fee Letter. Such fees shall be fully earned when paid and shall not be refundable
for any reason whatsoever.

     2.10. Computation of Interest and Fees. All computations of interest for Base Rate Loans when the
Base Rate is determined by Bank of America’s “prime rate” shall be made on the basis of a year of
365 or 366 days, as the case may be, and actual days elapsed. All other computations of fees and
interest shall be made on the basis of a 360-day year and actual days elapsed (which results in
more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year).
Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a
Loan, or any portion thereof, for the day on which the Loan or such portion is paid,
provided that any Loan that is repaid on the same day on which it is made shall, subject to
Section 2.12(a), bear interest for one day.

     2.11. Evidence of Debt.

     (a) The Credit Extensions made by each Lender shall be evidenced by one or more accounts or
records maintained by such Lender and by the Administrative Agent in the ordinary course of
business. The accounts or records maintained by the Administrative Agent and each Lender shall be
conclusive absent manifest error of the amount of the Credit Extensions made by the Lenders to each
Borrower and the interest and payments thereon. Any failure to so record or any error in doing so
shall not, however, limit or otherwise affect the obligation of any Borrower hereunder to pay any
amount owing with respect to the Obligations. In the event of any conflict between the accounts
and records maintained by any Lender and the accounts and records of the Administrative Agent in
respect of such matters, the accounts and records of the Administrative Agent shall control in the
absence of manifest error. Upon the request of any Lender made through the Administrative Agent,
each Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Note,
which shall evidence such Lender’s Loans in addition to such accounts or records. Each Lender may
attach schedules to its Note and endorse thereon the date, Type (if applicable), amount and
maturity of its Loans and payments with respect thereto.

     (b) In addition to the accounts and records referred to in Subsection (a), each Lender and the
Administrative Agent shall maintain in accordance with its usual practice accounts or records
evidencing the purchases and sales by such Lender of participations in Letters of Credit. In the
event of any conflict between the accounts and records maintained by the Administrative Agent and
the accounts and records of any Lender in respect of such matters, the accounts and records of the
Administrative Agent shall control in the absence of manifest error.

     2.12. Payments Generally.

     (a) All payments to be made by any Borrower shall be made without condition or deduction for
any counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein,
all payments by any Borrower hereunder shall be made to the Administrative Agent, for the account
of the respective Lenders to which such payment is owed, at the Administrative Agent’s Office in
Dollars and in immediately available funds not later than 2:30 p.m. on the date specified herein.
The Administrative Agent will promptly distribute to each Lender its Pro Rata Share (or other
applicable share as provided herein) of such payment in like funds as received by wire transfer to
such Lender’s Lending Office. All payments received by the Administrative Agent after 2:30 p.m.
shall be deemed received on the next succeeding Business Day and any applicable interest or fee
shall continue to accrue.

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     (b) If any payment to be made by any Borrower shall come due on a day other than a Business
Day, payment shall be made on the next following Business Day, and such extension of time shall be
reflected in computing interest or fees, as the case may be.

     (c) Unless any Borrower or any Lender has notified the Administrative Agent, prior to the date
any payment is required to be made by it to the Administrative Agent hereunder (or, in the case of
a Borrowing of Base Rate Loans, prior to 12:30 p.m. on the date of such Borrowing), that such
Borrower or such Lender, as the case may be, will not make such payment, the Administrative Agent
may assume that such Borrower or such Lender, as the case may be, has timely made such payment and
may (but shall not be required to), in reliance thereon, make available a corresponding amount to
the Person entitled thereto. If and to the extent that such payment was not in fact made to the
Administrative Agent in immediately available funds, then:

     (i) if such Borrower failed to make such payment, each Lender shall forthwith on demand
repay to the Administrative Agent the portion of such assumed payment that was made
available to such Lender in immediately available funds, together with interest thereon in
respect of each day from and including the date such amount was made available by the
Administrative Agent to such Lender to the date such amount is repaid to the Administrative
Agent in immediately available funds at the Federal Funds Rate from time to time in effect;
and

     (ii) if any Lender failed to make such payment, such Lender shall forthwith on demand
pay to the Administrative Agent the amount thereof in immediately available funds, together
with interest thereon for the period from the date such amount was made available by the
Administrative Agent to such Borrower to the date such amount is recovered by the
Administrative Agent (the “Compensation Period”) at a rate per annum equal to the
Federal Funds Rate from time to time in effect. If such Lender pays such amount to the
Administrative Agent, then such amount shall constitute such Lender’s Committed Loan or Bid
Loan, as the case may be, included in the applicable Borrowing. If such Lender does not pay
such amount forthwith upon the Administrative Agent’s demand therefor, the Administrative
Agent may make a demand therefor upon such Borrower, and such Borrower shall pay such amount
to the Administrative Agent, together with interest thereon for the Compensation Period at a
rate per annum equal to the rate of interest applicable to the applicable Borrowing.
Nothing herein shall be deemed to relieve any Lender from its obligation to fulfill its
Commitment or to prejudice any rights which the Administrative Agent, any Lender or any
Borrower or Applicant may have against any other Lender as a result of any default by such
Lender hereunder.

     A notice of the Administrative Agent to any Lender or any Borrower with respect to any amount
owing under this Subsection (c) shall be conclusive, absent manifest error.

     (d) If any Lender makes available to the Administrative Agent funds for any Loan to be made by
such Lender as provided in the foregoing provisions of this Article II, and such funds are
not made available to any Borrower by the Administrative Agent because the conditions to the
applicable Credit Extension set forth in Article V are not satisfied or waived in
accordance with the terms hereof, the Administrative Agent shall promptly return such funds (in
like funds as received from such Lender) to such Lender, without interest.

     (e) The obligations of the Lenders hereunder to make Committed Loans and to fund
participations in Letters of Credit are several and not joint. The failure of any Lender to make
any Committed Loan or to fund any such participation on any date required hereunder shall not
relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall
be responsible for the failure of any other Lender to so make its Committed Loan or purchase its
participation.

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     (f) Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in
any particular place or manner or to constitute a representation by any Lender that it has obtained
or will obtain the funds for any Loan in any particular place or manner.

     2.13. Sharing of Payments. If, other than as expressly provided elsewhere herein, any Lender shall
obtain on account of the Committed Loans made by it, or the participations in L/C Obligations held
by it, any payment (whether voluntary, involuntary, through the exercise of any right of set-off,
or otherwise) in excess of its ratable share (or other share contemplated hereunder) thereof, such
Lender shall immediately (a) notify the Administrative Agent of such fact, and (b) purchase from
the other Lenders such participations in the Committed Loans made by them and/or such
subparticipations in the participations in L/C Obligations held by them, as the case may be, as
shall be necessary to cause such purchasing Lender to share the excess payment in respect of such
Committed Loans or such participations, as the case may be, pro rata with each of them;
provided, however, that if all or any portion of such excess payment is thereafter
recovered from the purchasing Lender under any of the circumstances described in Section
10.06 (including pursuant to any settlement entered into by the purchasing Lender in its
discretion), such purchase shall to that extent be rescinded and each other Lender shall repay to
the purchasing Lender the purchase price paid therefor, together with an amount equal to such
paying Lender’s ratable share (according to the proportion of (i) the amount of such paying
Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of
any interest or other amount paid or payable by the purchasing Lender in respect of the total
amount so recovered, without further interest thereon. Each Borrower agrees that any Lender so
purchasing a participation from another Lender may, to the fullest extent permitted by law,
exercise all its rights of payment (including the right of set-off, but subject to Section
10.09) with respect to such participation as fully as if such Lender were the direct creditor
of such Borrower in the amount of such participation. The Administrative Agent will keep records
(which shall be conclusive and binding in the absence of manifest error) of participations
purchased under this Section and will in each case notify the Lenders following any such purchases
or repayments. Each Lender that purchases a participation pursuant to this Section shall from and
after such purchase have the right to give all notices, requests, demands, directions and other
communications under this Agreement with respect to the portion of the Obligations purchased to the
same extent as though the purchasing Lender were the original owner of the Obligations purchased.

     2.14. Increase in Commitments.

     (a) Notice of Increase. Provided no Event of Default has occurred and is then
continuing and the Borrowers have not theretofore terminated or reduced the Aggregate Commitments
pursuant to Section 2.06, and subject to the terms and conditions of this Section
2.14, upon notice to the Administrative Agent, the Borrowers may, from time to time, elect to
increase the Aggregate Commitments to an amount (for all such increases) that does not exceed
$4,000,000,000; provided that each increase shall be in a minimum amount of $50,000,000. If such
increase is to be effected in whole or in part through an increase in the Commitment of one or more
of the existing Lenders (it being agreed that no existing Lender shall be obligated to increase its
Commitment), such notice shall be accompanied by a writing executed by each existing Lender that
has agreed to increase its Commitment, setting forth the amount of its increased Commitment. If
such increase is to be effected in whole or in part through the addition of one or more Eligible
Assignees as new Lenders, the addition of each such Eligible Assignee as a new Lender shall be
subject to the consent of the Administrative Agent and the Issuing Lender, which consents shall not
be unreasonably withheld or delayed, and such notice shall be accompanied by the written agreement
of each such Eligible Assignee to become a Lender, setting forth the amount of its Commitment.

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     (b) Assistance by Administrative Agent. The Administrative Agent agrees to provide
such assistance as the Borrowers may reasonably request in soliciting increased Commitments from
existing Lenders and/or Commitments from Eligible Assignees.

     (c) Effective Date and Allocations. If the Aggregate Commitments are increased in
accordance with this Section, the Administrative Agent and the Borrowers shall determine the
effective date (the “Increase Effective Date”) and the final allocation of each increase.
The Administrative Agent shall promptly notify the Borrowers and the Lenders (including any new
Lenders) of the final allocation of such increase and such Increase Effective Date. On or before
such Increase Effective Date, each Eligible Assignee that becomes a new Lender shall execute a
joinder agreement to this Agreement in form and substance reasonably satisfactory to the
Administrative Agent. The Administrative Agent is authorized and directed to amend and distribute
to the Lenders (including any new Lenders) a revised Schedule 2.01 that gives effect to
each increase in the Aggregate Commitments and the allocation thereof among the Lenders (including
any new Lenders). As soon as practicable (with the intention of avoiding or minimizing any
additional amounts payable pursuant to Section 3.05), the applicable Borrower or Borrowers
shall prepay any Committed Loans outstanding on each Increase Effective Date (and pay any
additional amounts required pursuant to Section 3.05) to the extent necessary to keep the
outstanding Committed Loans ratable with any revised Applicable Percentages arising from any
nonratable increase in the Commitments under this Section.

     (d) Conflicting Provisions. This Section shall supersede any provisions in
Section 2.13 or Section 10.01 to the contrary.

     2.15. Extensions of Maturity Date.

     (a) Requests for Extension. The Borrowers may, by notice to the Administrative Agent
(which shall promptly notify the Lenders) not earlier than 75 days and not later than 45 days prior
to each of the first and second anniversaries of the date of this Agreement (each such date, an
“Extension Date”), request that each Lender extend such Lender’s Maturity Date then in
effect to the date that is one year after the last occurring Maturity Date then in effect for any
Lender. In addition, if the original Maturity Date of June 20, 2012 is not extended for any reason
on the first Extension Date, the Borrowers may, by notice to the Administrative Agent (which shall
promptly notify the Lenders) not earlier than 75 days and not later than 45 days prior to the
second anniversary of the date of this Agreement, request that each Lender extend such original
Maturity Date to the date that is two years after such original Maturity Date.

     (b) Lender Elections to Extend. Each Lender, acting in its sole and individual
discretion, shall, by notice to the Administrative Agent given not earlier than the date that is 45
days prior to the applicable Extension Date and not later than the date that is 30 days prior to
the applicable Extension Date (the “Notice Date”), advise the Administrative Agent whether
or not such Lender agrees to the extension requested by the Borrowers (each Lender that determines
to so extend its Maturity Date then in effect, an “Extending Lender”). Each Lender that
determines not to so extend its Maturity Date then in effect (a “Non-Extending Lender”)
shall notify the Administrative Agent of such determination promptly after such determination (but
in any event no later than the Notice Date), and any Lender that does not so advise the
Administrative Agent on or before the Notice Date shall be deemed to be a Non-Extending Lender.
The election of any Lender to agree to such extension shall not obligate any other Lender to so
agree.

     (c) Notification by Administrative Agent. The Administrative Agent shall notify the
Borrowers of each Lender’s determination under this Section no later than the date that is 25 days
prior to the applicable Extension Date (or, if such date is not a Business Day, the next preceding
Business Day).

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     (d) Additional Commitment Lenders. The Borrowers shall have the right, but shall not
be obligated, on or before the Maturity Date then in effect for any Non-Extending Lender, to
replace such Non-Extending Lender with, one or more Lenders or other Eligible Assignees that have
agreed to replace such Non-Extending Lender and to be Extending Lenders (each, an “Additional
Commitment Lender”), each of which Additional Commitment Lenders shall have entered into an
Assignment and Assumption with such Non-Extending Lender, pursuant to which such Additional
Commitment Lenders shall, effective on or before the Maturity Date of such Non-Extending Lender,
assume a Commitment (and, if any such Additional Commitment Lender is already a Lender, its
Commitment shall be in addition to such Lender’s Commitment hereunder on such date). Prior to any
Non-Extending Lender being replaced by one or more Additional Commitment Lenders pursuant hereto,
such Non-Extending Lender may elect, in its sole discretion, by giving irrevocable notice thereof
to the Administrative Agent and the Borrowers (which notice shall set forth such Lender’s new
Maturity Date, which shall be the last occurring Maturity Date then in effect for any Lender), to
become an Extending Lender.

     (e) Minimum Extension Requirement. If (and only if) the total of the Commitments of
the Lenders that have agreed to so extend their Commitments on the applicable Extension Date
(without regard to the new or increased Commitment of any Additional Commitment Lender) shall be at
least 51% of the Aggregate Commitments in effect immediately prior to the applicable Extension
Date, then, effective as of the applicable Extension Date, the Maturity Date of each Extending
Lender shall be extended to the date that is one year (or two years if the last sentence of
Subsection 2.15(a) is applicable) after the last occurring Maturity Date then in effect for
any Lender and each Additional Commitment Lender shall thereupon become a “Lender” for all purposes
of this Agreement.

     (f) Conditions to Effectiveness of Extension. Notwithstanding the foregoing, any
extension of any Maturity Date pursuant to this Section 2.15 shall not be effective with
respect to any Lender unless:

     (i) no Event of Default shall have occurred and be continuing on the applicable
Extension Date and after giving effect thereto;

     (ii) the representations and warranties of the Borrowers contained in Article IV shall
be true and correct on and as of the applicable Extension Date and after giving effect to
such extension, as though made on and as of such date (except that the representation and
warranty made in Subsection 4.04(c) shall be made since the date of the last audited
financial statements delivered pursuant to Subsection 6.01(a); and

     (iii) as of the applicable Extension Date and since the date of the last audited
financial statements delivered pursuant to Subsection 6.01(a), no material adverse
change shall have occurred in the business, assets, property or condition (financial or
otherwise) of MetLife and its Subsidiaries, taken as a whole, from that shown in such
financial statements.

     (iv) the Borrowers have delivered to the Administrative Agent a certificate of each
Loan Party dated as of the applicable Extension Date signed by a Responsible Officer of such
Loan Party certifying as to Subsections 2.15(f)(i), (ii) and (iii).

     (g) Payment of Non-Extending Lenders. On the Maturity Date of any Non-Extending
Lender, the Borrower shall pay all obligations owing hereunder to such Non-Extending Lender (to the
extent such obligations have not been purchased by one or more Additional Commitment Lenders) and
shall prepay any Committed Loans outstanding on such date (and pay any additional amounts required
pursuant to Section 3.05) to the extent necessary to keep outstanding Committed Loans
ratable with any revised Applicable Percentages of the respective Lenders effective as of such
date. Notwithstanding

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anything contained herein that may be to the contrary, including Section 2.13,
Section 8.02 and Section 8.03, in the event that a Non-Extending Lender does not
receive all obligations owing to it hereunder on its Maturity Date, such Non-Extending Lender may,
without the joinder or consent of the Administrative Agent or any other Lender, exercise
independently and for its own account all rights and remedies available under the Loan Documents
and applicable law to collect and retain such obligations.

ARTICLE III.

TAXES, YIELD PROTECTION AND ILLEGALITY

     3.01. Taxes.

     (a) Any and all payments by or on account of any obligation of either Borrower hereunder shall
be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes;
provided that if any Borrower shall be required to deduct any Indemnified Taxes or Other
Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after
making all required deductions (including deductions applicable to additional sums payable under
this Section) the Administrative Agent 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) such Borrower shall make such
deductions and (iii) such Borrower shall pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.

     (b) In addition, each Borrower shall pay any Other Taxes not paid pursuant to Section
3.01(a)(iii) to the relevant Governmental Authority in accordance with applicable law.

     (c) Each Borrower shall indemnify the Administrative Agent and each Lender, within thirty (30)
days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes
paid by the Administrative Agent or such Lender, as the case may be, on or with respect to any
payment by or on account of any obligation of such Borrower hereunder (including Indemnified Taxes
or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) and
any penalties, interest, additions to tax and reasonable expenses arising therefrom or with respect
thereto; provided, that such Borrower shall not be obligated to make a payment pursuant to
this Section 3.01 in respect of penalties, interest and additions to tax attributable to
any Indemnified Taxes or Other Taxes, if (i) such penalties, interest and additions to tax are
attributable to the failure of the Administrative Agent or such Lender, as the case may be, to pay
amounts paid to the Administrative Agent or such Lender by such Borrower (for Indemnified Taxes or
Other Taxes) to the relevant Governmental Authority within thirty (30) days after receipt of such
payment from such Borrower or (ii) such penalties, interest and additions to tax are attributable
to the gross negligence or willful misconduct of the Administrative Agent or such Lender, as the
case may be. Within 90 days after the Administrative Agent or such Lender learns of the imposition
of Indemnified Taxes or Other Taxes, such Person shall give notice to the relevant Borrower of the
payment by the Administrative Agent or such Lender, as the case may be, of such Indemnified Taxes
or Other Taxes, and of the assertion by any Governmental Authority that such Indemnified Taxes or
Other Taxes are due and payable, but the failure to give such notice shall not affect such
Borrower’s obligations hereunder to reimburse the Administrative Agent and such Lender for such
Indemnified Taxes or Other Taxes, except that such Borrower shall not be liable for penalties,
interest and other liabilities accrued or incurred after such 90-day period until such time as it
receives the notice contemplated above, after which time it shall be liable for penalties, interest
and other liabilities accrued or incurred prior to or during such 90 day period and accrued or
incurred after such receipt. Such Borrower shall not be liable for any penalties, interest and
other liabilities with respect to such Indemnified Taxes or Other Taxes to the extent it has
reimbursed the amount thereof to the Administrative Agent or such Lender, as the case may be. A
certificate as to the amount of such payment or liability delivered to the relevant Borrower by a
Lender, or

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by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive
absent manifest error.

     (d) Within 30 days after any payment of Indemnified Taxes or Other Taxes by the relevant
Borrower to a Governmental Authority, such Borrower shall deliver to the Administrative Agent the
original or a certified copy of a receipt issued by such Governmental Authority evidencing such
payment, a copy of the return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

     (e) Each Foreign Lender, before it signs and delivers this Agreement if listed on the
signature pages hereof, or before it becomes a Lender in the case of each other Foreign Lender,
shall provide such Borrower and the Administrative Agent either (i) two accurate, complete and
signed originals of either (x) U.S. Internal Revenue Service Form W-8ECI or any successor form, or
(y) U.S. Internal Revenue Service Form W-8BEN or U.S. Internal Revenue Service Form W-8IMY, or any
successor form, in each case indicating that such Lender is on the date of delivery thereof
entitled to receive payments of interest hereunder free from, or subject to a reduced rate of
withholding of, United States Federal income tax or (ii) in the case of such a Lender that is
entitled to claim exemption from withholding of United States Federal income tax under Section
871(h) or Section 881(c) of the Code with respect to payments of “portfolio interest”, (x) a
certificate to the effect that such Lender is (A) not a “bank” within the meaning of Section
881(c)(3)(A) of the Code, (B) not a “10 percent shareholder” of any Borrower within the meaning of
Section 881(c)(3)(B) of the Code and (C) not a controlled foreign corporation related to any
Borrower within the meaning of Section 881(c)(3)(C) of the Code and (y) two accurate, complete and
signed copies of U.S. Internal Revenue Service Form W-8BEN or U.S. Internal Revenue Service Form
W-8IMY, or any successor Form. To the extent permitted or required by applicable law, from time to
time thereafter, at the request of any Borrower, each Foreign Lender shall deliver renewals or
additional copies of such forms (or successor forms) on or before the date that such form expires
or becomes obsolete. Upon the written request of a Borrower to the Administrative Agent and any
Lender which is not a Foreign Lender, such Lender shall provide such Borrower and the
Administrative Agent with two accurate, complete and signed originals of the U.S. Internal Revenue
Service Form W-9.

     (f) The Administrative Agent may, without reduction, withhold any Taxes required to be
deducted and withheld from any payment under any of the Loan Documents with respect to which the
Borrowers are not required to pay additional amounts under this Section 3.01.

     (g) If the U.S. Internal Revenue Service or any other Governmental Authority asserts a claim
that the Administrative Agent did not properly withhold tax from amounts paid to or for the account
of any Lender (because the appropriate form was not delivered or properly completed, because such
Lender failed to notify the Administrative Agent of a change in circumstances which rendered its
exemption from withholding ineffective, or for any other reason), such Lender shall indemnify the
Administrative Agent fully for all amounts paid, directly or indirectly, by the Administrative
Agent as tax, withholding therefor, or otherwise, including penalties and interest, and including
taxes imposed by any jurisdiction on amounts payable to the Administrative Agent under this
paragraph (g), together with all costs and expenses related thereto (including attorneys’ fees and
time charges of attorneys for the Administrative Agent, which attorneys may be employees of the
Administrative Agent). The obligations of the Lenders under this paragraph (g) shall survive the
payment of the Loans and termination of this Agreement.

     (h) If the Administrative Agent or any Lender determines, in its good faith judgment, that it
has actually received or realized any refund of tax or any reduction of its tax liabilities or
otherwise recovered any amount in connection with any deduction or withholding or payment of any
additional amount by any Borrower pursuant to Section 3.04 or this Section 3.01, such Person shall
reimburse such

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Borrower within 60 days in an amount equal to the net benefit, after tax, and net of all
reasonable out-of-pocket expenses incurred by such Person in connection with such refund, reduction
or recovery; provided, that nothing in this paragraph (h) shall require any Person to make
available its tax returns (or any other information relating to its taxes which it deems to be
confidential). In the event that the reimbursement described in the preceding sentence is
determined to have been paid to any Borrower in error, such Borrower shall return such amount to
the applicable Person within 60 days of when such Person is required to repay such refund of tax or
is not entitled to such reduction of, or credit against, its tax liabilities. If the
Administrative Agent or any Lender shall become aware that it is entitled to receive a refund or
direct credit in respect of Indemnified Taxes or Other Taxes as to which it has been indemnified by
any Borrower or with respect to which any Borrower has paid additional amounts, it shall promptly
notify such Borrower of the availability of such refund or direct credit and shall, within 30 days
after receipt of a request for such by such Borrower (whether as a result of notification that it
has made of such to such Borrower or otherwise), make a claim to such Governmental Authority for
such refund or direct credit and contest such Indemnified Taxes, Other Taxes or liabilities if (i)
such Borrower has agreed in writing to pay all of such Lender’s or the Administrative Agent’s
reasonable out-of-pocket costs and expenses relating to such claim or contest, (ii) such Lender or
the Administrative Agent determines, in its good faith judgment, that it would not be materially
disadvantaged or prejudiced as a result of such claim or contest (it being understood that the mere
existence of fees, charges, costs or expenses that such Borrower has offered and agreed to pay on
behalf of such Lender or the Administrative Agent shall not be deemed to be materially
disadvantageous to such Person) and (iii) such Borrower furnishes, upon request of such Lender or
the Administrative Agent, an opinion of tax counsel (such opinion and such counsel to be reasonably
acceptable to such Lender or the Administrative Agent) to the effect that such Indemnified Taxes or
Other Taxes were wrongly or illegally imposed.

     3.02. Illegality. If any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending
Office to make, maintain or fund Eurodollar Rate Loans, or to determine or charge interest rates
based upon the Eurodollar Rate, then, on notice thereof by such Lender to the applicable Borrower
through the Administrative Agent, any obligation of such Lender to make or continue Eurodollar Rate
Loans or to convert Base Rate Committed Loans to Eurodollar Rate Committed Loans shall be suspended
until such Lender notifies the Administrative Agent and such Borrower that the circumstances giving
rise to such determination no longer exist. Upon receipt of such notice, the Borrowers shall, upon
demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable,
convert all its Eurodollar Rate Loans of such Lender to Base Rate Loans, either on the last day of
the Interest Period therefor, if such Lender may lawfully continue to maintain such Eurodollar Rate
Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such
Eurodollar Rate Loans. Upon any such prepayment or conversion, the applicable Borrower shall also
pay accrued interest on the amount so prepaid or converted. Each Lender agrees to designate a
different Lending Office if such designation will avoid the need for such notice and will not, in
the good faith judgment of such Lender, otherwise be materially disadvantageous to such Lender.

     3.03. Inability to Determine Rates. If the Required Lenders determine that for any reason adequate
and reasonable means do not exist for determining the Eurodollar Base Rate for any requested
Interest Period with respect to a proposed Eurodollar Rate Committed Borrowing, or that the
Eurodollar Base Rate for any requested Interest Period with respect to a proposed Eurodollar Rate
Committed Borrowing does not adequately and fairly reflect the cost to such Lenders of funding such
Loan, the Administrative Agent will promptly so notify the Borrowers and each Lender. Thereafter,
the obligation of the Lenders to make or maintain Eurodollar Rate Loans shall be suspended until
the Administrative Agent (upon the instruction of the Required Lenders) revokes such notice. Upon
receipt of such notice, any Borrower may revoke any pending request by it for a Borrowing of,
conversion to or continuation of

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Eurodollar Rate Committed Loans or, failing that, will be deemed to have converted such request
into a request for a Committed Borrowing of Base Rate Loans in the amount specified therein.

     3.04. Increased Cost and Reduced Return; Capital Adequacy.

     (a) If any Lender determines that as a result of the introduction of or any change in or in
the interpretation by any Governmental Authority of any Law, or such Lender’s compliance with any
request, guideline or directive of any Governmental Authority made or issued after the date hereof,
there shall be any increase in the cost to such Lender of agreeing to make or making, funding or
maintaining Eurodollar Rate Loans or (as the case may be) issuing or participating in Letters of
Credit, or a reduction in the amount received or receivable by such Lender in connection with any
of the foregoing (excluding for purposes of this Subsection (a) any such increased costs or
reduction in amount resulting from (i) Taxes or Other Taxes (as to which Section 3.01 shall
govern), (ii) changes in the basis of taxation of overall net income or overall gross income by the
United States or any foreign jurisdiction or any political subdivision of either thereof under the
Laws of which such Lender is organized, in which its principal office is located or has its Lending
Office (or in the case of a jurisdiction (or any political subdivision thereof) that imposes taxes
on the basis of management or control or other concept or principal of residence, the jurisdiction
(or any political subdivision thereof) in which such Lender is so resident), and (iii) reserve
requirements utilized, as to Eurodollar Rate Committed Loans, in the determination of the
Eurodollar Rate), then from time to time upon demand of such Lender (with a copy of such demand to
the Administrative Agent), the applicable Borrower shall pay to such Lender such additional amounts
as will compensate such Lender for such increased cost or reduction.

     (b) If any Lender determines that the introduction of any Law regarding capital adequacy or
any change therein or in the interpretation by any Governmental Authority thereof, or compliance by
such Lender (or its Lending Office) with any request, guideline or directive of any Governmental
Authority made or issued after the date hereof, has the effect of reducing the rate of return on
the capital of such Lender or any corporation controlling such Lender as a consequence of such
Lender’s obligations hereunder (taking into consideration its policies with respect to capital
adequacy and such Lender’s desired return on capital), then from time to time upon demand of such
Lender (with a copy of such demand to the Administrative Agent), the Borrowers shall jointly and
severally pay to such Lender such additional amounts as will compensate such Lender for such
reduction.

     3.05. Compensation for Losses. Upon demand of any Lender (with a copy to the Administrative Agent)
from time to time, each Borrower shall promptly compensate such Lender for and hold such Lender
harmless from any loss, cost or expense incurred by it as a result of:

     (a) except as a result of circumstances set forth in Section 3.02, any continuation,
conversion, payment or prepayment of any Loan to it other than a Base Rate Loan on a day other than
the last day of the Interest Period for such Loan (whether voluntary, mandatory, automatic, by
reason of acceleration, or otherwise);

     (b) any failure by such Borrower (for a reason other than the failure of such Lender to make a
Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the date or in
the amount notified by such Borrower; or

     (c) any assignment of a Eurodollar Rate Loan on a day other than the last day of the Interest
Period therefor as a result of a request by such Borrower pursuant to Section 10.15;

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     including any loss of anticipated profits and any loss or expense arising from the liquidation
or reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the
deposits from which such funds were obtained.

     For purposes of calculating amounts payable by any Borrower to the Lenders under this
Section 3.05, each Lender shall be deemed to have funded each Eurodollar Rate Committed
Loan made by it at the Eurodollar Base Rate used in determining the Eurodollar Rate for such Loan
by a matching deposit or other borrowing in the London interbank eurodollar market for a comparable
amount and for a comparable period, whether or not such Eurodollar Rate Committed Loan was in fact
so funded.

     3.06. Matters Applicable to all Requests for Compensation.

     (a) A certificate of the Administrative Agent or any Lender claiming compensation under this
Article III and setting forth the basis for such claim and a calculation of the additional
amount or amounts to be paid to it hereunder shall be conclusive in the absence of manifest error.

     (b) Upon any Lender’s making a claim for compensation under Section 3.01 or
3.04, the Borrowers may replace such Lender in accordance with Section 10.15.

     3.07. Survival. All of the Borrowers’ obligations under this Article III shall survive
termination of the Aggregate Commitments and repayment of all other Obligations hereunder.

ARTICLE IV.

REPRESENTATIONS AND WARRANTIES

     Each Borrower represents and warrants to the Lenders, as to itself and its Subsidiaries, as
applicable, that:

     4.01. Organization; Powers. MetLife and each of its Material Subsidiaries is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its organization, has
all requisite power and authority to carry on its business as now conducted and, except where the
failure to do so, individually or in the aggregate, would not reasonably be expected to result in
a Material Adverse Change, is qualified to do business in, and is in good standing in, every
jurisdiction where such qualification is required.

     4.02. Authorization; Enforceability. The Transactions are within each Borrower’s corporate powers
and have been duly authorized by all necessary corporate action. This Agreement has been duly
executed and delivered by each Borrower and constitutes a legal, valid and binding obligation of
each Borrower, enforceable in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and
subject to general principles of equity, regardless of whether considered in a proceeding in equity
or at law. The Support Agreement has been duly executed and delivered by and constitutes a legal,
valid and binding obligation of the Company and Funding, enforceable in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and subject to general principles of equity, regardless of whether
considered in a proceeding in equity or at law.

     4.03. Governmental Approvals; No Conflicts. The Transactions (a) do not require any consent or
approval of, registration or filing with, or any other action by, any Governmental Authority,
except such as have been obtained or made and are in full force and effect, (b) will not violate
any applicable law or regulation or the charter, by laws or other organizational documents of any
Borrower or any order of any Governmental Authority, and (c) will not violate or result in a
default under any

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indenture, agreement or other instrument binding upon any Borrower or its assets, or give rise to a
right thereunder to require any payment to be made by any Borrower.

     4.04. Financial Condition; No Material Adverse Change.

     (a) MetLife has heretofore furnished to the Lenders its audited consolidated balance sheet and
statements of earnings, equity and cash flows as of and for the fiscal year ended December 31,
2006, reported on by independent public accountants. Such financial statements present fairly, in
all material respects, the financial position and results of operations and cash flows of MetLife
and its Consolidated Subsidiaries, as of the date thereof and for such fiscal year, in accordance
with GAAP.

     (b) MetLife has heretofore furnished to each of the Lenders the annual Statutory Statement of
the Company as at and for the year ended December 31, 2006, as filed with the Applicable Insurance
Regulatory Authority. Such Statutory Statement presents fairly, in all material respects, the
financial position and results of operations of the Company, as of the date thereof and for such
year, in accordance with SAP.

     (c) Since December 31, 2006, there has been no material adverse change in the business,
assets, property or condition (financial or otherwise) of MetLife and its Subsidiaries taken as a
whole from that set forth in the respective financial statements referred to in Sections
4.04(a) and 4.04(b).

     4.05. Properties.

     (a) MetLife and each of its Material Subsidiaries has good title to, or valid leasehold
interests in, all its real and personal property material to its business, except for defects in
title that, individually or in the aggregate, would not reasonably be expected to result in a
Material Adverse Change.

     (b) MetLife and each of its Material Subsidiaries owns, or is licensed to use, all trademarks,
tradenames, copyrights, patents and other intellectual property material to its business, and the
use thereof by MetLife and its Material Subsidiaries does not infringe upon the rights of any other
Person, except for any such infringements that, individually or in the aggregate, would not
reasonably be expected to result in a Material Adverse Change.

     4.06. Litigation and Environmental Matters.

     (a) There are no actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of any Borrower, threatened against or affecting
MetLife or any of its Material Subsidiaries (i) as to which there would reasonably be expected to
be an adverse determination and that, if adversely determined, would reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Change (other than the Disclosed
Matters) or (ii) that involve this Agreement or the Transactions.

     (b) Except for the Disclosed Matters and except with respect to any other matters that,
individually or in the aggregate, would not reasonably be expected to result in a Material Adverse
Change, neither MetLife nor any of its Material Subsidiaries (i) has failed to comply with any
Environmental Law or to obtain, maintain or comply with any permit, license or other approval
required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii)
has received notice of any claim with respect to any Environmental Liability or (iv) knows of any
basis for any Environmental Liability.

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     4.07. Compliance with Laws and Agreements. Each of MetLife and its Material Subsidiaries is in
compliance with all laws, regulations and orders of any Governmental Authority applicable to it or
its property and all indentures, agreements and other instruments binding upon it or its property,
except where the failure to do so, individually or in the aggregate, would not reasonably be
expected to result in a Material Adverse Change. No Default has occurred and is continuing.

     4.08. Investment and Holding Company Status. Neither MetLife nor any of its Material Subsidiaries
(other than Funding) is an “investment company” as defined in, or subject to regulation under, the
Investment Company Act of 1940, and Funding is an “investment company” as defined in such Act that
is exempt from all of the provisions of such Act.

     4.09. Taxes. Each of MetLife and its Subsidiaries has timely filed or caused to be filed all tax
returns and reports required to have been filed and has paid or caused to be paid all Taxes
required to have been paid by it, except (a) Taxes that are being contested in good faith by
appropriate proceedings and for which MetLife or such Subsidiary, as applicable, has set aside on
its books adequate reserves or (b) to the extent that the failure to do so would not reasonably be
expected to result in a Material Adverse Change.

     4.10. ERISA. Each Plan and, to the knowledge of MetLife, each Multiemployer Plan, is in compliance
in all material respects with, and has been administered in all material respects in compliance
with, the applicable provisions of ERISA, the Code and any other Federal or State law, and no ERISA
Event has occurred or is reasonably expected to occur that, when taken together with all other such
ERISA Events for which liability is reasonably expected to occur, would reasonably be expected to
result in a Material Adverse Change.

     4.11. Disclosure. None of the reports, financial statements, certificates or other information
furnished by or on behalf of the Borrowers to the Administrative Agent or any Lender in connection
with the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other
information so furnished) contains any material misstatement of fact or omits to state any material
fact necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading; provided that with respect to projected financial information,
the Borrowers represent only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time.

     4.12. Margin Stock. No part of the proceeds of any Loan hereunder will be used, whether directly
or indirectly, for any purpose that entails a violation of any of the Regulations of the FRB,
including Regulations U and X. Not more than 25% of the value (as determined by any reasonable
method) of the assets of any of the Borrowers is represented by Margin Stock.

ARTICLE V.

CONDITIONS TO CREDIT EXTENSIONS

     5.01. Closing Date. The obligations of the Lenders to make Loans and of the L/C Issuer to issue
Letters of Credit hereunder shall not become effective until the date on which each of the
following conditions is satisfied (or waived in accordance with Section 10.01):

     (a) The Administrative Agent (or its counsel) shall have received from each party hereto
either (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence
satisfactory to the Administrative Agent (which may include telecopy transmission of a signed
signature page of this Agreement) that such party has signed a counterpart of this Agreement.

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     (b) The Administrative Agent shall have received an opinion, addressed to it and the Lenders
and dated the Closing Date, of counsel to the Borrowers, substantially in the form of Exhibit E,
and covering such other matters relating to the Borrowers, this Agreement or the Transactions as
the Required Lenders shall reasonably request. The Borrowers hereby request such counsel to
deliver such opinion.

     (c) The Administrative Agent shall have received such documents and certificates as the
Administrative Agent, its counsel or any Lender may reasonably request relating to the
organization, existence and good standing of each of the Borrowers, the authorization of the
Transactions and any other legal matters relating to each of the Borrowers, this Agreement or the
Transactions, all in form and substance satisfactory to the Administrative Agent and its counsel.

     (d) The Administrative Agent shall have received all fees and other amounts due and payable on
or prior to the Closing Date, including, to the extent invoiced, reimbursement or payment of all
out-of-pocket expenses required to be reimbursed or paid by the Borrowers hereunder.

     (e) The Existing Credit Agreements shall have been terminated and all obligations thereunder
(other than the Existing Letters of Credit) shall have been repaid in full.

     The Administrative Agent shall notify the Borrowers and the Lenders of the Closing Date, and
such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the
Lenders to make Loans hereunder shall not become effective unless each of the foregoing conditions
is satisfied (or waived pursuant to Section 10.01) at or prior to 3:00 p.m., New York City
time, on June 20, 2007 (and, in the event such conditions are not so satisfied or waived, the
Commitments shall terminate at such time).

     5.02. Each Credit Event. The obligation of each Lender to make a Loan on the occasion of any
Borrowing or of the L/C Issuer to make any L/C Credit Extension is subject to the satisfaction of
the following conditions:

     (a) The representations and warranties of each of the Borrowers set forth in this Agreement
(other than, after the Closing Date, in Section 4.04(c) and in Section 4.06) shall
be true and correct on and as of the date of such Borrowing.

     (b) At the time of and immediately after giving effect to such Borrowing or L/C Credit
Extension, no Default shall have occurred and be continuing.

     (c) At the time of and immediately after giving effect to such Borrowing or L/C Credit
Extension, no default or event or condition which constitutes a default or which upon notice, lapse
of time or both would, unless cured or waived, become a default shall have occurred and be
continuing under the Support Agreement.

     (d) The applicable Borrower is authorized to perform its obligations in respect of the
proposed Borrowing or L/C Credit Extension.

     Each Borrowing or L/C Credit Extension shall be deemed to constitute a representation and
warranty by each Borrower on the date thereof as to the matters specified in paragraphs (a), (b)
and (c) of this Section.

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ARTICLE VI.

AFFIRMATIVE COVENANTS

     Until the Commitments and all Letters of Credit have expired or been terminated and the
principal of and interest on each Loan and each L/C Borrowing and all fees payable hereunder shall
have been paid in full, each Borrower covenants and agrees with the Lenders that:

     6.01. Financial Statements and Other Information. MetLife will furnish to the Administrative Agent
and each Lender:

     (a) (i) as soon as available, but not later than 60 days (or such other period as may be
prescribed under the Securities Exchange Act of 1934, as amended, and the rules and regulations of
the SEC thereunder) after the end of each fiscal year of MetLife, copies of MetLife’s annual report
on Form 10-K as filed with the SEC for such fiscal year; and (ii) as soon as available, but not
later than 40 days (or such other period as may be prescribed under the Securities Exchange Act of
1934, as amended, and the rules and regulations of the SEC thereunder) after the end of each of the
first three fiscal quarters of each fiscal year of MetLife, copies of MetLife’s quarterly report
on Form 10-Q as filed with the SEC for such fiscal quarter, in each case certified by an
appropriate Financial Officer as being the complete and correct copies of the statements on such
forms furnished by MetLife to the SEC, it being understood that, in each case, the Administrative
Agent shall be entitled to rely on any certification pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002, as amended, by the chief financial officer of MetLife that accompanies such annual and
quarterly reports;

     (b) concurrently with any delivery of financial statements under clause (a) above or (except
as to clause (ii) of this paragraph (b)) clause (c) or (d) below, a certificate of a Financial
Officer of MetLife (i) certifying as to whether a Default has occurred and, if a Default has
occurred, specifying the details thereof and any action taken or proposed to be taken with respect
thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with
Sections 7.04 and 7.05 and (iii) stating whether any change in GAAP or SAP, as the
case may be, or in the application thereof has occurred since the date of the most recently
delivered financial statements and, if any such change has occurred, specifying the effect of such
change on the financial statements accompanying such certificate;

     (c) within five days after filing with the Applicable Insurance Regulatory Authority and in
any event within 60 days after the end of each year, the annual Statutory Statement of the Company
for such year, certified by one of its Financial Officers as presenting fairly in all material
respects the financial position of the Company for such year in accordance with SAP;

     (d) within five days after filing with the Applicable Insurance Regulatory Authority and in
any event within 60 days after the end of each of the first three quarterly periods of each year,
the quarterly Statutory Statement of the Company for such period, certified by one of its Financial
Officers as presenting fairly in all material respects the financial position of the Company for
such period in accordance with SAP;

     (e) within five days after any change in a Debt Rating for a Borrower, notice of such change;
and

     (f) within ten days after knowledge of the occurrence of any ERISA Event, a description of
such ERISA Event; and

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     (g) promptly following any request therefor, such other information regarding the operations,
business affairs and financial condition of MetLife or any of its Material Subsidiaries, or
compliance with the terms of this Agreement, as the Administrative Agent or any Lender may
reasonably request.

     Documents required to be delivered pursuant to Section 4.04 or Section 6.01
(to the extent any such documents are included in materials otherwise filed with the SEC) may be
delivered electronically and if so delivered, shall be deemed to have been delivered on the date
(i) on which the Borrowers post such documents, or provides a link thereto on the Borrowers’
website on the Internet at the website address listed on Schedule 10.02; or (ii) on which
such documents are posted on the Borrowers’ behalf on an Internet or intranet website, if any, to
which each Lender and the Administrative Agent have access (whether a commercial, third-party
website or whether sponsored by the Administrative Agent); provided that: the Borrowers
shall notify (which may be by facsimile or electronic mail) the Administrative Agent of the posting
of any such documents and provide to the Administrative Agent by electronic mail electronic
versions (i.e., soft copies) of such documents. Notwithstanding anything contained herein,
in every instance the Borrowers shall be required to provide paper copies of the certificate
required by Section 6.01(b) to the Administrative Agent. Except for such certificates, the
Administrative Agent shall have no obligation to request the delivery or to maintain copies of the
documents referred to above, and in any event shall have no responsibility to monitor compliance by
the Borrowers with any such request for delivery, and each Lender shall be solely responsible for
requesting delivery to it or maintaining its copies of such documents.

     The Borrowers hereby acknowledge that (a) the Administrative Agent and/or the Arrangers will
make available to the Lenders and the L/C Issuer materials and/or information provided by or on
behalf of the Borrowers hereunder (collectively, the “Borrower Materials”) by posting the
Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and
(b) certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to
receive material non-public information with respect to the Borrowers or its Affiliates, or the
respective securities of any of the foregoing, and who may be engaged in investment and other
market-related activities with respect to such Persons’ securities. The Borrowers hereby agree
that (i) all Borrower Materials that are to be made available to Public Lenders shall be clearly
and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall
appear prominently on the first page thereof; (ii) by marking Borrower Materials “PUBLIC,” the
Borrowers shall be deemed to have authorized the Administrative Agent, the Arranger, the L/C Issuer
and the Lenders to treat such Borrower Materials as not containing any material non-public
information with respect to the Borrowers or their securities for purposes of United States Federal
and state securities laws (provided, however, that to the extent such Borrower
Materials constitute Information, they shall be treated as set forth in Section 10.08);
(iii) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion
of the Platform designated “Public Investor;” and (z) the Administrative Agent and the Arrangers
shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable
only for posting on a portion of the Platform not designated “Public Investor.”

     6.02. Notices of Defaults. The Borrowers will furnish to the Administrative Agent and each Lender
prompt written notice of the occurrence of any Default. Each such notice shall be accompanied by a
statement of a Financial Officer or other executive officer of MetLife setting forth the details of
the event or development requiring such notice and any action taken or proposed to be taken with
respect thereto.

     6.03. Existence; Conduct of Business. MetLife will, and will cause each of its Material
Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in full
force and effect its legal existence and the rights, licenses, permits, privileges and franchises
material to the conduct of its business, other than those whose loss, in each case, would not
reasonably be expected to result in a

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Material Adverse Change; provided that the foregoing shall not prohibit any merger,
consolidation, liquidation, dissolution or other transaction permitted under Section 7.02.

     6.04. Payment of Obligations. MetLife will, and will cause each of its Material Subsidiaries to,
pay, before the same shall become delinquent or in default, its obligations, including Tax
liabilities, that, if not paid, could result in a Material Adverse Change, except where (a) the
validity or amount thereof is being contested in good faith by appropriate proceedings, (b) MetLife
or such Material Subsidiary has set aside on its books adequate reserves with respect thereto in
accordance with GAAP and (c) the failure to make payment pending such contest would not reasonably
be expected to result in a Material Adverse Change.

     6.05. Maintenance of Properties; Insurance. MetLife will, and will cause each of its Material
Subsidiaries to, (a) keep and maintain all property material to the conduct of its business in good
working order and condition, ordinary wear and tear excepted, and (b) maintain, with financially
sound and reputable insurance companies, insurance in such amounts and against such risks as are
customarily maintained by companies of similar size engaged in the same or similar businesses
operating in the same or similar locations.

     6.06. Books and Records; Inspection Rights. MetLife will, and will cause each of its Material
Subsidiaries to, keep proper books of record and account in which full, true and correct entries
are made of all dealings and transactions in relation to its business and activities. MetLife
will, and will cause each of its Material Subsidiaries to, permit any representative designated by
the Administrative Agent (and, if a Default shall have occurred and be continuing, any
representatives reasonably designated by any Lender), upon reasonable prior notice, to visit and
inspect its properties, to examine and make extracts from its books and records, and to discuss its
affairs, finances and condition (insofar as they relate to this Agreement) with its officers and
independent accountants, all at such reasonable times and as often as reasonably requested.

     6.07. Compliance with Laws. MetLife will, and will cause each of its Material Subsidiaries to,
comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it
or its property, except where the failure to do so, individually or in the aggregate, would not
reasonably be expected to result in a Material Adverse Change.

     6.08. Use of Proceeds. The proceeds of the Loans will be used only for general corporate purposes
(including the back-up of commercial paper) of MetLife and its Subsidiaries in the ordinary course
of business; provided that no part of the proceeds of any Loan will be used, whether
directly or indirectly, for any purpose that entails a violation of any of the Regulations of the
FRB, including Regulations U and X; provided further that no part of the proceeds
of any Loan will be used, whether directly or indirectly, to acquire the capital stock or business
of any other Person without the consent of such Person; and provided further that
neither the Administrative Agent nor any Lender shall have any responsibility as to the use of any
such proceeds.

     6.09. Support Agreement. Funding will, and MetLife will cause the Company to, (a) maintain the
Support Agreement in full force and effect, and comply with the provisions thereof, and (b) not
modify, supplement or waive any of its provisions without the prior consent of the Administrative
Agent (with the approval of the Required Lenders); provided that any modification,
supplement or waiver that reduces or impairs the support provided to Funding shall require the
approval of all Lenders.

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ARTICLE VII.

NEGATIVE COVENANTS

     Until the Commitments and all Letters of Credit have expired or terminated and the principal
of and interest on each Loan and each L/C Borrowing and all fees payable hereunder have been paid
in full, each Borrower covenants and agrees with the Lenders that:

     7.01. Liens. Neither of the Borrowers will create, incur, assume or permit to exist any Lien on
any property or asset now owned or hereafter acquired by it, or assign or sell any income or
revenues (including accounts receivable) or rights in respect of any thereof, except:

     (a) Permitted Encumbrances;

     (b) any Lien existing on any property or asset prior to the acquisition thereof by such
Borrower; provided that (i) such Lien is not created in contemplation of or in connection
with such acquisition, (ii) such Lien shall not apply to any other property or assets of such
Borrower, and (iii) such Lien shall secure only those obligations which it secures on the date of
such acquisition;

     (c) Liens on assets acquired, constructed or improved by such Borrower; provided that
(i) such Liens and the Indebtedness secured thereby are incurred prior to or within 360 days after
such acquisition or the completion of such construction or improvement, (ii) the Indebtedness
secured thereby does not exceed the cost of acquiring, constructing or improving such assets, and
(iii) such Liens shall not apply to any other property or assets of such Borrower;

     (d) Liens on any property or assets of any Person existing at the time such Person is merged
or consolidated with or into such Borrower, and not created in contemplation of such event;

     (e) Liens on any real property securing Indebtedness in respect of which (i) the recourse of
the holder of such Indebtedness (whether direct or indirect and whether contingent or otherwise)
under the instrument creating the Lien or providing for the Indebtedness secured by the Lien is
limited to such real property directly securing such Indebtedness and (ii) such holder may not
under the instrument creating the Lien or providing for the Indebtedness secured by the Lien
collect by levy of execution or otherwise against assets or property of such Borrower (other than
such real property directly securing such Indebtedness) if such Borrower fails to pay such
Indebtedness when due and such holder obtains a judgment with respect thereto, except for recourse
obligations that are customary in “non-recourse” real estate transactions;

     (f) Liens arising out of Securities Transactions entered into in the ordinary course of
business and on ordinary business terms;

     (g) Liens arising out of any real estate sale/leaseback transactions;

     (h) Liens arising in connection with Swap Contracts;

     (i) Liens on securities owned by such Borrower which are pledged to the Federal Home Loan Bank
Board (the “FHLBB”) to secure loans made by the FHLBB to such Borrower in the ordinary
course of business and on ordinary business terms;

     (j) Liens on securities owned by, or obligations owed to, such Borrower that directly or
indirectly secure funding agreements issued by MetLife or any Subsidiary of MetLife (each a
“MetLife Entity”), which funding agreements directly or indirectly secure, or provide for,
the repayment of

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amounts that a MetLife Entity has received from the proceeds of securities issued by a
special-purpose vehicle formed for the purpose of issuing such securities; provided that at the
time of issuance such securities had a rating by a nationally recognized rating agency higher than
that which unsecured long-term debt securities issued by the MetLife Entity that is the issuer of
the applicable funding agreement would have had;

     (k) Liens on cash or securities owned by such Borrower that directly or indirectly secure
demand notes executed and contributed by such Borrower to brokers or dealers that are Affiliates of
MetLife, which demand notes evidence obligations of such Borrower to provide funds to such brokers
or dealers for the purpose of enabling such brokers or dealers to satisfy net capital requirements
established by applicable Law;

     (l) Liens not otherwise permitted by this Section 7.01 arising in the ordinary course
of the business of such Borrower that do not secure any Indebtedness; provided that the
obligations secured by such Liens shall not exceed $3,500,000,000 at any one time outstanding;

     (m) Liens not otherwise permitted by this Section 7.01; provided that the
aggregate principal amount of the Indebtedness secured by such Liens shall not exceed
$4,500,000,000 at any one time outstanding; and

     (n) any extension, renewal or replacement of the foregoing; provided that the Liens
permitted hereunder shall not be spread to cover any additional Indebtedness or assets (other than
a substitution of like assets) unless such additional Indebtedness or assets would have been
permitted in connection with the original creation, incurrence or assumption of such Lien.

     7.02. Fundamental Changes.

     (a) No Borrower will, and MetLife will not permit the Company to, merge into or consolidate
with any other Person, or permit any other Person to merge into or consolidate with it, or sell,
transfer, lease or otherwise dispose of (in one transaction or in a series of transactions) all or
substantially all of its assets (excluding (i) assets sold or disposed of in the ordinary course of
business and (ii) assets sold or disposed of between or among MetLife and its direct and indirect
wholly-owned Subsidiaries), or (in the case of MetLife) all or any substantial part of the stock of
Funding or the Company (in each case whether now owned or hereafter acquired), or liquidate or
dissolve; provided, however, that all or a substantial part of the stock of Funding may be
transferred so long as it remains directly or indirectly held by MetLife; and provided
further, that, if at the time thereof and immediately after giving effect thereto no
Default shall have occurred and be continuing (A) any Subsidiary of a Borrower or the Company, as
the case may be, may merge into such Borrower or the Company, as the case may be, in a transaction
in which such Borrower or the Company, as the case may be, is the surviving corporation, (B)
Funding may sell, transfer, lease or otherwise dispose of its assets to MetLife or the Company,
including via liquidation, so long as MetLife or the Company expressly assumes the obligations of
Funding hereunder and under any promissory notes issued hereunder, and (C) a Borrower or the
Company, as the case may be, may merge or consolidate with any other Person if such Borrower or the
Company, as the case may be, is the surviving corporation.

     (b) MetLife will not, and will not permit any of its Material Subsidiaries to, engage to any
material extent in any business other than (i) businesses of the type conducted by MetLife or any
of its Subsidiaries on the date of execution of this Agreement and businesses reasonably related
thereto and (ii) businesses financial in nature.

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     7.03. Transactions with Affiliates. MetLife will not, and will not permit any of its Material
Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or
otherwise acquire any property or assets from, or otherwise engage in any other transactions (other
than service arrangements) with, any of its Affiliates, except (a) in the ordinary course of
business at prices and on terms and conditions not less favorable to MetLife or such Material
Subsidiary than could be obtained on an arm’s length basis from unrelated third parties, and (b)
transactions between or among MetLife and its direct or indirect Subsidiaries.

     7.04. Consolidated Net Worth. MetLife will not permit its Consolidated Net Worth, calculated as of
the last day of each fiscal quarter, to be less than $21,500,000,000.

ARTICLE VIII.

EVENTS OF DEFAULT

     8.01. Events of Default. If any of the following events (“Events of Default”) shall occur:

     (a) any Borrower shall fail to pay any principal of any Loan made to it when and as the same
shall become due and payable, whether at the due date thereof or at a date fixed for prepayment
thereof or
otherwise or shall fail to reimburse any drawing under any Letter of Credit as to which it was
the Applicant or the Co-Applicant when and as due;

     (b) any Borrower shall fail to pay any interest on any Loan made to it or any fee or any other
amount (other than an amount referred to in clause (a) of this Article) payable under this
Agreement, when and as the same shall become due and payable, and such failure shall continue
unremedied for a period of five or more Business Days;

     (c) any representation or warranty made or deemed made by or on behalf of MetLife or any of
its Material Subsidiaries in or in connection with this Agreement or any amendment or modification
hereof or waiver hereunder, or in any report, certificate, financial statement or other document
furnished pursuant to or in connection with this Agreement or any amendment or modification hereof
or waiver hereunder, shall prove to have been incorrect in any material respect when made or deemed
made;

     (d) (i) any Borrower shall fail to observe or perform any covenant, condition or agreement
contained in Section 6.01, 6.02 or 6.06, and such failure shall continue
unremedied for a period of five Business Days after notice thereof from the Administrative Agent to
the relevant Borrower (which notice will be given at the request of any Lender); or (ii) any
Borrower shall fail to observe or perform any covenant, condition or agreement contained in
Section 6.03 or 6.09 or in Article VII;

     (e) any Borrower shall fail to observe or perform any covenant, condition or agreement
contained in this Agreement (other than those specified in clause (a), (b) or (d) of this Article),
and such failure shall continue unremedied for a period of 30 days after notice thereof from the
Administrative Agent to the relevant Borrower (which notice will be given at the request of any
Lender);

     (f) MetLife or any of its Material Subsidiaries shall fail to make payments (whether of
principal or interest and regardless of amount) on Material Indebtedness, when and as the same
shall become due and payable;

     (g) any event or condition occurs that results in Material Indebtedness becoming due prior to
the scheduled maturity of such Material Indebtedness or that enables or permits (with or without
the giving of notice, the lapse of time or both) the holder or holders of Material Indebtedness or
any trustee or agent on its or their behalf to cause Material Indebtedness to become due, or to
require the prepayment,

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repurchase, redemption or defeasance thereof, prior to its scheduled
maturity; provided that this clause (g) shall not apply to secured Indebtedness that
becomes due as a result of the voluntary sale or transfer of the property or assets securing such
Indebtedness;

     (h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed
seeking (i) liquidation, reorganization or other relief in respect of MetLife or any of its
Material Subsidiaries or its debts, or of a substantial part of its assets, under any Debtor Relief
Laws now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official for MetLife or any or its Material Subsidiaries or
for a substantial part of its assets, and, in any such case, such proceeding or petition shall
continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing
shall be entered;

     (i) MetLife or any of its Material Subsidiaries shall (i) voluntarily commence any proceeding
or file any petition seeking liquidation, reorganization or other relief under any Debtor Relief
Laws now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a
timely and appropriate manner, any proceeding or petition described in clause (h) of this Article,
(iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for MetLife or any or its Material Subsidiaries or for a
substantial part of its assets, (iv) file an answer
admitting the material allegations of a petition filed against it in any such proceeding, (v)
make a general assignment for the benefit of creditors or (vi) take any action for the purpose of
effecting any of the foregoing;

     (j) MetLife or any of its Material Subsidiaries shall become unable, admit in writing its
inability or fail generally to pay its debts as they become due;

     (k) one or more judgments for the payment of money in an aggregate amount in excess of
$500,000,000 (or its equivalent in any other currency) shall be rendered against MetLife, any
Material Subsidiary of MetLife or any combination thereof and the same shall remain undischarged
for a period of 30 consecutive days during which execution shall not be effectively stayed; or

     (l) an ERISA Event shall have occurred that, in the opinion of the Required Lenders, when
taken together with all other ERISA Events that have occurred, could reasonably be expected to
result in liability of MetLife and its Material Subsidiaries in an aggregate amount exceeding
$300,000,000 in any year;

     8.02. Remedies Upon Event of Default. If any Event of Default occurs and is continuing, the
Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders,
with notice to the Borrowers, take any or all of the following actions:

     (a) declare the commitment of each Lender to make Loans and any obligation of the L/C Issuer
to make L/C Credit Extensions to be terminated, whereupon such commitments and obligation shall be
terminated;

     (b) declare the unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document
to be immediately due and payable, without presentment, demand, protest or other notice of any
kind, all of which are hereby expressly waived by the Borrowers;

     (c) require that each Borrower Cash Collateralize its L/C Obligations (in an amount equal to
the then Outstanding Amount thereof); and

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     (d) exercise on behalf of itself and the Lenders all rights and remedies available to it and
the Lenders under the Loan Documents or applicable law;

     provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to any Borrower under the Bankruptcy Code of the United States, the
obligation of each Lender to make Loans to any Borrower and any obligation of the L/C Issuer to
make L/C Credit Extensions to the Borrowers shall automatically terminate, the unpaid principal
amount of all outstanding Loans and all interest and other amounts as aforesaid shall automatically
become due and payable, and the obligation of the Borrowers to Cash Collateralize the L/C
Obligations as aforesaid shall automatically become effective, in each case without further act of
the Administrative Agent or any Lender.

     8.03. Application of Funds. After the exercise of remedies provided for in Section 8.02
(or after the Loans have automatically become immediately due and payable and the L/C Obligations
have automatically been required to be
Cash Collateralized as set forth in the proviso to Section 8.02), any amounts received on
account of the Obligations of any Borrower shall be applied by the Administrative Agent in the
following order:

     First, to payment of that portion of such Borrower’s Obligations constituting fees,
indemnities, expenses and other amounts (including Attorney Costs and amounts payable under
Article III) payable to the Administrative Agent in its capacity as such;

     Second, to payment of that portion of such Borrower’s Obligations constituting fees,
indemnities and other amounts (other than principal, interest and Letter of Credit Fees) payable to
the Lenders (including Attorney Costs and amounts payable under Article III), ratably among
them in proportion to the respective amounts described in this clause Second payable to
them;

     Third, to payment of that portion of such Borrower’s Obligations constituting accrued
Letter of Credit Fees and unpaid interest on the Loans and L/C Borrowings, ratably among the
Lenders in proportion to the respective amounts described in this clause Third payable to
them;

     Fourth, to payment of that portion of such Borrower’s Obligations constituting unpaid
principal of the Loans and L/C Borrowings, ratably among the Lenders in proportion to the
respective amounts described in this clause Fourth held by them;

     Fifth, to the Administrative Agent for the account of the L/C Issuer, to Cash
Collateralize that portion of such Borrower’s L/C Obligations comprised of the aggregate
undrawn amount of Letters of Credit; and

     Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full,
to such Borrower or as otherwise required by Law.

     Amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant
to clause Fifth above shall be applied to satisfy drawings under such Letters of Credit as
they occur. If any amount remains on deposit as Cash Collateral after all Letters of Credit have
either been fully drawn or expired, such remaining amount shall be applied to the other
Obligations, if any, in the order set forth above.

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ARTICLE IX.

ADMINISTRATIVE AGENT

     9.01. Appointment and Authorization of Administrative Agent.

     (a) Each Lender hereby irrevocably appoints, designates and authorizes the Administrative
Agent to take such action on its behalf under the provisions of this Agreement and each other Loan
Document and to exercise such powers and perform such duties as are expressly delegated to it by
the terms of this Agreement or any other Loan Document, together with such powers as are reasonably
incidental thereto. Notwithstanding any provision to the contrary contained elsewhere herein or in
any other Loan Document, the Administrative Agent shall not have any duties or responsibilities,
except those expressly set forth herein, nor shall the Administrative Agent have or be deemed to
have any fiduciary relationship with any Lender or Participant, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement
or any other Loan Document or otherwise exist against the Administrative Agent. Without limiting
the generality of the foregoing sentence, the use of the term “agent” herein and in the other Loan
Documents with reference to the Administrative Agent is
not intended to connote any fiduciary or other implied (or express) obligations arising under
agency doctrine of any applicable Law. Instead, such term is used merely as a matter of market
custom, and is intended to create or reflect only an administrative relationship between
independent contracting parties.

     (b) The L/C Issuer shall act on behalf of the Lenders with respect to any Letters of Credit
issued by it and the documents associated therewith, and the L/C Issuer shall have all of the
benefits and immunities (i) provided to the Administrative Agent in this Article IX with
respect to any acts taken or omissions suffered by the L/C Issuer in connection with Letters of
Credit issued by it or proposed to be issued by it and the applications and agreements for letters
of credit pertaining to such Letters of Credit as fully as if the term “Administrative Agent” as
used in this Article IX and in the definition of “Agent-Related Person” included the L/C
Issuer with respect to such acts or omissions, and (ii) as additionally provided herein with
respect to the L/C Issuer.

     9.02. Delegation of Duties. The Administrative Agent may execute any of its duties under this
Agreement or any other Loan Document by or through agents, employees or attorneys-in-fact and shall
be entitled to advice of counsel and other consultants or experts concerning all matters pertaining
to such duties. The Administrative Agent shall not be responsible to the Lenders for the
negligence or misconduct of any agent or attorney-in-fact selected by the Administrative Agent in
good faith after due inquiry.

     9.03. Liability of Administrative Agent. No Agent-Related Person shall (a) be liable for any
action taken or omitted to be taken by any of them under or in connection with this Agreement or
any other Loan Document or the transactions contemplated hereby (except for its own gross
negligence or willful misconduct in connection with its duties expressly set forth herein), or (b)
be responsible in any manner to any Lender or Participant for any recital, statement,
representation or warranty made by any Loan Party or any officer thereof, contained herein or in
any other Loan Document, or in any certificate, report, statement or other document referred to or
provided for in, or received by the Administrative Agent under or in connection with, this
Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Loan Document, or for any failure of any Loan Party
or any other party to any Loan Document to perform its obligations hereunder or thereunder. No
Agent-Related Person shall be under any obligation to any Lender or Participant to ascertain or to
inquire as to the observance or performance of any of the agreements contained in, or conditions
of, this Agreement or any other Loan Document, or to inspect the properties, books or records of
any Loan Party or any Affiliate thereof.

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     9.04. Reliance by Administrative Agent.

     (a) The Administrative Agent shall be entitled to rely, and shall be fully protected in
relying, upon any writing, communication, signature, resolution, representation, notice, consent,
certificate, affidavit, letter, telegram, facsimile, telex or telephone message, electronic mail
message, statement or other document or conversation believed by it to be genuine and correct and
to have been signed, sent or made by the proper Person or Persons, and upon advice and statements
of legal counsel (including counsel to any Loan Party), independent accountants and other experts
selected by the Administrative Agent. The Administrative Agent shall be fully justified in failing
or refusing to take any action under any Loan Document unless it shall first receive such advice or
concurrence of the Required Lenders as it deems appropriate and, if it so requests, it shall first
be indemnified to its satisfaction by the Lenders against any and all liability and expense which
may be incurred by it by reason of taking or continuing to
take any such action. The Administrative Agent shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance
with a request or consent of the Required Lenders (or such greater number of Lenders as may be
expressly required hereby in any instance) and such request and any action taken or failure to act
pursuant thereto shall be binding upon all the Lenders.

     (b) For purposes of determining compliance with the conditions specified in Section
5.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved
or accepted or to be satisfied with, each document or other matter required thereunder to be
consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative
Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its
objection thereto.

     9.05. Notice of Default. The Administrative Agent shall not be deemed to have knowledge or notice
of the occurrence of any Default, except with respect to defaults in the payment of principal,
interest and fees required to be paid to the Administrative Agent for the account of the Lenders or
the L/C Issuer, unless the Administrative Agent shall have received written notice from a Lender or
a Borrower referring to this Agreement, describing such Default and stating that such notice is a
“notice of default.” The Administrative Agent will notify the Lenders of its receipt of any such
notice. The Administrative Agent shall take such action with respect to such Default as may be
directed by the Required Lenders in accordance with Article VIII; provided,
however, that unless and until the Administrative Agent has received any such direction,
the Administrative Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default as it shall deem advisable or in the best interest
of the Lenders.

     9.06. Credit Decision; Disclosure of Information by Administrative Agent. Each Lender acknowledges
that no Agent-Related Person has made any representation or warranty to it, and that no act by the
Administrative Agent hereafter taken, including any consent to and acceptance of any assignment or
review of the affairs of any Loan Party or any Affiliate thereof, shall be deemed to constitute any
representation or warranty by any Agent-Related Person to any Lender as to any matter, including
whether Agent-Related Persons have disclosed material information in their possession. Each Lender
represents to the Administrative Agent that it has, independently and without reliance upon any
Agent-Related Person and based on such documents and information as it has deemed appropriate, made
its own appraisal of and investigation into the business, prospects, operations, property,
financial and other condition and creditworthiness of the Loan Parties and their respective
Subsidiaries, and all applicable bank or other regulatory Laws relating to the transactions
contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to
the Borrowers hereunder. Each Lender also represents that it will, independently and without
reliance upon any Agent-Related Person and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Agreement and the other Loan

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Documents, and to make such
investigations as it deems necessary to inform itself as to the business, prospects, operations,
property, financial and other condition and creditworthiness of the Borrowers. Except for notices,
reports and other documents expressly required to be furnished to the Lenders by the Administrative
Agent herein, the Administrative Agent shall not have any duty or responsibility to provide any
Lender with any credit or other information concerning the business, prospects, operations,
property, financial and other condition or creditworthiness of any of the Loan Parties or any of
their respective Affiliates which may come into the possession of any Agent-Related Person.

     9.07. Indemnification of Administrative Agent. Whether or not the transactions contemplated hereby are consummated, the Lenders shall indemnify
upon demand each Agent-Related Person (to the extent not reimbursed by or on behalf of any Loan
Party and without limiting the obligation of any Loan Party to do so), pro rata, and hold harmless
each Agent-Related Person from and against any and all Indemnified Liabilities incurred by it;
provided, however, that (a) no Lender shall be liable for the payment to any
Agent-Related Person of any portion of such Indemnified Liabilities to the extent determined in a
final, nonappealable judgment by a court of competent jurisdiction to have resulted from such
Agent-Related Person’s own gross negligence or willful misconduct, provided,
however, that no action taken in accordance with the express directions of the Required
Lenders shall be deemed to constitute gross negligence or willful misconduct for purposes of this
Section, and (b) no Lender shall be liable for the payment of any portion of an Indemnified
Liability pursuant to this Section unless such Indemnified Liability was incurred by the
Administrative Agent in its capacity as such or by another Agent-Related Person acting for the
Administrative Agent in such capacity. Without limitation of the foregoing, each Lender shall
reimburse the Administrative Agent upon demand for its ratable share of any costs or out-of-pocket
expenses (including Attorney Costs) incurred by the Administrative Agent in connection with the
preparation, execution, delivery, administration, modification, amendment or enforcement (whether
through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or
referred to herein, to the extent that the Administrative Agent is not reimbursed for such expenses
by or on behalf of the Borrowers. The undertaking in this Section shall survive termination of the
Aggregate Commitments, the payment of all other Obligations and the resignation of the
Administrative Agent.

     9.08. Administrative Agent in its Individual Capacity. Bank of America and its Affiliates may make
loans to, issue letters of credit for the account of, accept deposits from, acquire equity
interests in and generally engage in any kind of banking, trust, financial advisory, underwriting
or other business with each of the Loan Parties and their respective Affiliates as though Bank of
America were not the Administrative Agent or the L/C Issuer hereunder and without notice to or
consent of the Lenders. The Lenders acknowledge that, pursuant to such activities, Bank of America
or its Affiliates may receive information regarding any Loan Party or its Affiliates (including
information that may be subject to confidentiality obligations in favor of such Loan Party or such
Affiliate) and acknowledge that the Administrative Agent shall be under no obligation to provide
such information to them. With respect to its Loans, Bank of America shall have the same rights
and powers under this Agreement as any other Lender and may exercise such rights and powers as
though it were not the Administrative Agent or the L/C Issuer, and the terms “Lender” and “Lenders”
include Bank of America in its individual capacity.

     9.09. Successor Administrative Agent. The Administrative Agent may resign as Administrative Agent
upon 30 days’ notice to the Lenders and the Borrowers; provided that any such notice of resignation
by Bank of America shall also constitute its notice of resignation as L/C Issuer. If the
Administrative Agent resigns under this Agreement, the Required Lenders shall appoint from among
the Lenders a successor administrative agent for the Lenders, which successor administrative agent
shall be consented to by the Borrowers at all times other than during the existence of an Event of
Default (which consent of the Borrowers shall not be unreasonably withheld or delayed). If no
successor

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administrative agent is appointed prior to the effective date of the resignation of the
Administrative Agent, the Administrative Agent may appoint, after consulting with the Lenders and
the Borrowers, a successor administrative agent from among the Lenders. Upon the acceptance of its
appointment as successor administrative agent hereunder and the receipt of any necessary approvals
from the beneficiaries of any Letters of Credit and from insurance regulatory authorities, the
Person acting as such successor administrative agent shall succeed to all the rights, powers and
duties of the retiring
Administrative Agent and L/C Issuer, the respective terms “Administrative Agent” and “L/C Issuer”
shall mean such successor administrative agent and Letter of Credit issuer, the retiring
Administrative Agent’s appointment, powers and duties as Administrative Agent shall be terminated
and the retiring L/C Issuer’s rights, powers and duties as such shall be terminated, without any
other or further act or deed on the part of such retiring L/C Issuer or any other Lender, other
than the obligation of the successor L/C Issuer to issue letters of credit in substitution for the
Letters of Credit, if any, outstanding at the time of such succession or to make other arrangements
satisfactory to the retiring L/C Issuer to effectively assume the obligations of the retiring L/C
Issuer with respect to such Letters of Credit. After any retiring Administrative Agent’s
resignation hereunder as Administrative Agent, the provisions of this Article IX and
Section 10.05 shall inure to its benefit as to any actions taken or omitted to be taken by
it while it was Administrative Agent under this Agreement. If no successor administrative agent
has accepted appointment as Administrative Agent by the date which is 30 days following a retiring
Administrative Agent’s notice of resignation, the retiring Administrative Agent’s resignation shall
nevertheless thereupon become effective and the Lenders shall perform all of the duties of the
Administrative Agent hereunder until such time, if any, as the Required Lenders appoint a successor
agent as provided for above; provided, however, that the retiring Administrative Agent shall remain
the L/C Issuer.

     9.10. Administrative Agent May File Proofs of Claim. In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether
the principal of any Loan or L/C Obligation shall then be due and payable as herein expressed or by
declaration or otherwise and irrespective of whether the Administrative Agent shall have made any
demand on any Borrower) shall be entitled and empowered, by intervention in such proceeding or
otherwise

     (a) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans, L/C Obligations and all other Obligations that are owing and unpaid
and to file such other documents as may be necessary or advisable in order to have the claims of
the Lenders and the Administrative Agent (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Lenders and the Administrative Agent and their
respective agents and counsel and all other amounts due the Lenders and the Administrative Agent
under Sections 2.04(i) and (j), 2.09 and 10.05) allowed in such
judicial proceeding; and

     (b) to collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same;

     and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar
official in any such judicial proceeding is hereby authorized by each Lender to make such payments
to the Administrative Agent and, in the event that the Administrative Agent shall consent to the
making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due
for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent
and its agents and counsel, and any other amounts due the Administrative Agent under Sections
2.09 and 10.05.

     Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement,
adjustment

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or composition affecting the Obligations or the rights of any Lender or to authorize the
Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

     9.11. Other Agents; Joint Lead Arrangers and Book Managers. None of the Lenders or other Persons identified on the facing page or signature pages of this
Agreement as a “syndication agent,” “documentation agent” or “arranger” shall have any right,
power, obligation, liability, responsibility or duty under this Agreement other than, in the case
of such Lenders, those applicable to all Lenders as such. Without limiting the foregoing, none of
the Lenders or other Persons so identified shall have or be deemed to have any fiduciary
relationship with any Lender. Each Lender acknowledges that it has not relied, and will not rely,
on any of the Lenders or other Persons so identified in deciding to enter into this Agreement or in
taking or not taking action hereunder.

ARTICLE X.

MISCELLANEOUS

     10.01. Amendments, Etc. No amendment or waiver of any provision of this Agreement or any other
Loan Document, and no consent to any departure by any Borrower therefrom, shall be effective unless
in writing signed by the Required Lenders and the Borrowers, and acknowledged by the Administrative
Agent, and each such waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided, however, that no such amendment, waiver
or consent shall:

     (a) waive any condition set forth in Section 5.01 without the written consent of each
Lender;

     (b) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated
pursuant to Section 8.02) without the written consent of such Lender;

     (c) postpone any date fixed by this Agreement or any other Loan Document for any payment of
principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under
any other Loan Document without the written consent of each Lender directly affected thereby;

     (d) reduce the principal of, or the rate of interest specified herein on, any Loan or L/C
Borrowing, or (subject to clause (iv) of the second proviso to this Section 10.01) any fees
or other amounts payable hereunder or under any other Loan Document without the written consent of
each Lender directly affected thereby; provided, however, that only the consent of
the Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive any
obligation of the applicable Borrower to pay interest or Letter of Credit Fees at the Default Rate;

     (e) change Section 2.13 or Section 8.03 in a manner that would alter the pro
rata sharing of payments required thereby without the written consent of each Lender; or

     (f) change any provision of this Section or the definition of “Required Lenders” or any other
provision hereof specifying the number or percentage of Lenders required to amend, waive or
otherwise modify any rights hereunder or make any determination or grant any consent hereunder,
without the written consent of each Lender;

     and, provided further, that (i) no amendment, waiver or consent shall, unless
in writing and signed by the L/C Issuer in addition to the Lenders required above, affect the
rights or duties of the L/C Issuer under this Agreement or any Letter of Credit Application
relating to any Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent
shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required
above, affect the rights or duties of the

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Administrative Agent under this Agreement or any other
Loan Document; (iii) Section 10.07(h) may not be amended, waived or otherwise modified
without the consent of each Granting Lender all or any part of whose Loans are being funded by an
SPC at the time of such amendment, waiver or other modification;
and (iv) the Fee Letter may be amended, or rights or privileges thereunder waived, in a
writing executed only by the parties thereto. Notwithstanding anything to the contrary herein, no
Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent
hereunder, except that the Commitment of such Lender may not be increased or extended without the
consent of such Lender.

     10.02. Notices and Other Communications; Facsimile Copies.

     (a) General. Unless otherwise expressly provided herein, all notices and other
communications provided for hereunder shall be in writing (including by facsimile or other
electronic transmission). All such written notices shall be mailed certified or registered mail,
faxed or delivered to the applicable address, facsimile number or (subject to Subsection (b) below)
electronic mail address, and all notices and other communications expressly permitted hereunder to
be given by telephone shall be made to the applicable telephone number, as follows:

     (i) if to the Borrowers, the Administrative Agent or the L/C Issuer, to the address,
facsimile number, electronic mail address or telephone number specified for such Person on
Schedule 10.02 or to such other address, facsimile number, electronic mail address
or telephone number as shall be designated by such party in a notice to the other parties;
and

     (ii) if to any other Lender, to the address, facsimile number, electronic mail address
or telephone number specified in its Administrative Questionnaire or to such other address,
facsimile number, electronic mail address or telephone number as shall be designated by such
party in a notice to the Borrowers, the Administrative Agent and the L/C Issuer.

     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 facsimile 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
Subsection (b) below, shall be effective as provided in such Subsection (b). Each Lender agrees to
notify the Administrative Agent from time to time to ensure that the Administrative Agent has on
record (1) an effective address, contact name, telephone number, telecopier number and electronic
mail address to which notices and other communications may be sent to such Lender and (ii) accurate
wire instructions for such Lender.

     (b) 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 pursuant to Article II 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 any Borrower may, in its
discretion, agree to accept notices and other communications to it hereunder by electronic
communications pursuant to procedures approved by it, provided that approval of such
procedures may be limited to particular notices or communications.

     (c) 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

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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.

     (d) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR
THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE
BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE
BORROWER MATERIALS OR THE PLATFORM. In no event shall the Administrative Agent or any
Agent-Related Person (collectively, the “Agent Parties”) have any liability to any
Borrower, any Lender, the L/C Issuer or any other Person for losses, claims, damages, liabilities
or expenses of any kind (whether in tort, contract or otherwise) arising out of any Borrower’s or
the Administrative Agent’s transmission of Borrower Materials through the Internet, except to the
extent that such losses, claims, damages, liabilities or expenses are determined by a court of
competent jurisdiction by a final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Agent Party; provided, however, that in no
event shall any Agent Party have any liability to any Borrower, any Lender, the L/C Issuer or any
other Person for indirect, special, incidental, consequential or punitive damages (as opposed to
direct or actual damages). Each Public Lender agrees to cause at least one individual at or on
behalf of such Public Lender to at all times have selected the “Private Side Information” or
similar designation on the content declaration screen of the Platform in order to enable such
Public Lender or its delegate, in accordance with such Public Lender’s compliance procedures and
applicable Law, including United States Federal and state securities Laws, to make reference to
Borrower Materials that are not made available through the “Public Side Information” portion of the
Platform and that may contain material non-public information with respect to the Borrowers or
their securities for purposes of United States Federal or state securities laws.

     (e) Effectiveness of Facsimile Documents and Signatures. Loan Documents may be
transmitted and/or signed by facsimile. The effectiveness of any such documents and signatures
shall, subject to applicable Law, have the same force and effect as manually-signed originals and
shall be binding on all Loan Parties, the Administrative Agent and the Lenders. The Administrative
Agent may also require that any such documents and signatures be confirmed by a manually-signed
original thereof; provided, however, that the failure to request or deliver the
same shall not limit the effectiveness of any facsimile document or signature.

     (f) Reliance by Administrative Agent and Lenders. The Administrative Agent and the
Lenders shall be entitled to rely and act upon any notices (including telephonic Committed Loan
Notices) reasonably believed by them to be genuine and to have been given by or on behalf of the
Borrowers even if (i) such notices were not made in a manner specified herein, were incomplete or
were not preceded or followed by any other form of notice specified herein, or (ii) the terms
thereof, as understood by the recipient, varied from any confirmation thereof. The Borrowers shall
jointly and severally indemnify each Agent-Related Person and each Lender from all losses, costs,
expenses and liabilities resulting from the reliance by such Person on each notice reasonably
believed by it to be genuine and to have been given by or on behalf of the Borrowers. All
telephonic notices to and other communications with the Administrative Agent may be recorded by the
Administrative Agent, and each of the parties hereto hereby consents to such recording.

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     10.03. No Waiver; Cumulative Remedies. No failure by any Lender or the Administrative Agent to exercise, and no delay by any such
Person in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege. The rights, remedies, powers and privileges herein provided are
cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

     10.04. [Intentionally Omitted].

     10.05. Costs, Expenses and Indemnification.

     (a) Each Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the
Administrative Agent and the Agent-Related Persons, including reasonable Attorney Costs, in
connection with the syndication of the credit facilities provided for herein, the preparation and
administration of this Agreement or any amendments, modifications or waivers of the provisions
hereof (whether or not the transactions contemplated hereby or thereby shall be consummated), and
(ii) all out-of-pocket expenses incurred by the Administrative Agent or any Lender, including the
fees, charges and disbursements of any counsel for the Administrative Agent or any Lender, in
connection with the enforcement or protection of its rights in connection with this Agreement,
including its rights under this Section, or in connection with the Loans made or Letters of Credit
issued hereunder, including all such out-of-pocket expenses incurred during any workout,
restructuring or negotiations in respect of such Loans.

     (b) Each Borrower shall indemnify the Administrative Agent and each Lender and the directors,
officers, employees, agents, advisors and Affiliates 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, penalties and related expenses, including the fees,
charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any
Indemnitee arising out of, in connection with, or as a result of (i) the use or proposed use of the
proceeds of any Loan made to such Borrower or any Letter of Credit as to which such Borrower was
the Applicant or the Co-Applicant, or (ii) any actual or prospective claim, litigation,
investigation or proceeding relating thereto, whether based on contract, tort or any other theory
and regardless of whether any Indemnitee is a party thereto (the “Indemnified
Liabilities”); provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities, penalties or related
expenses resulted from the gross negligence or willful misconduct of such Indemnitee.

     (c) To the extent that the Borrowers fail to pay any amount required to be paid by them to the
Administrative Agent under paragraph (a) or (b) of this Section, each Lender severally agrees to
pay to the Administrative Agent such Lender’s Pro Rata 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, in its capacity as
such.

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

     (e) No Indemnitee shall be liable for any damages arising from the use by others of any
information or other materials obtained through IntraLinks or other similar information
transmission systems in connection with this Agreement.

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     (f) The agreements in this Section shall survive the resignation of the Administrative Agent,
the replacement of any Lender, the termination of the Aggregate Commitments and the repayment,
satisfaction or discharge of all the other Obligations.

     10.06. Payments Set Aside. To the extent that any payment by or on behalf of any Borrower is made
to the Administrative Agent or any Lender, or the Administrative Agent or any Lender exercises its
right of set-off, and such payment or the proceeds of such set-off or any part thereof is
subsequently invalidated, declared to be fraudulent or preferential, set aside or required
(including pursuant to any settlement entered into by the Administrative Agent or such Lender in
its discretion) to be repaid to a trustee, rehabilitator, conservator, custodian, liquidator,
receiver or any other party, in connection with any proceeding under any Debtor Relief Law or
otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect as if such payment
had not been made or such set-off had not occurred, and (b) each Lender severally agrees to pay to
the Administrative Agent upon demand its applicable share of any amount so recovered from or repaid
by the Administrative Agent, plus interest thereon from the date of such demand to the date such
payment is made at a rate per annum equal to the Federal Funds Rate from time to time in effect.

     10.07. Successors and Assigns.

     (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby, except that the
Borrowers may not assign or otherwise transfer any of their respective rights or obligations
hereunder without the prior written consent of each Lender and no Lender may assign or otherwise
transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in
accordance with the provisions of Subsection (b) of this Section, (ii) by way of participation in
accordance with the provisions of Subsection (d) of this Section, (iii) by way of pledge or
assignment of a security interest subject to the restrictions of Subsection (f) of this Section, or
(iv) to an SPC in accordance with the provisions of Subsection (h) of this Section (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 Subsection (d) of this Section and, to the extent expressly contemplated hereby,
the Indemnitees) any legal or equitable right, remedy or claim under or by reason of this
Agreement.

     (b) Any Lender may at any time assign to one or more Eligible Assignees all or a portion of
its rights and obligations under this Agreement (including all or a portion of its Commitment and
the Loans (including for purposes of this Subsection (b), participations in L/C Obligations) at the
time owing to it); provided that (i) except in the case of an assignment of the entire
remaining amount of the assigning Lender’s Commitment and the Loans at the time owing to it or in
the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund with respect
to a Lender, the aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) subject to each such assignment, determined as of the date the Assignment
and Assumption with respect to such assignment is delivered to the Administrative Agent or, if
“Trade Date” is specified in the Assignment and Assumption,
as of the Trade Date, shall not be less than $5,000,000 unless each of the Administrative
Agent and, so long as no Event of Default has occurred and is continuing, the Borrowers otherwise
consent (each such consent not to be unreasonably withheld or delayed); provided that
concurrent assignments to members of an Assignee Group and concurrent assignments from members of
an Assignee Group to a single Eligible Assignee (or to an Eligible Assignee and members of its
Assignee Group) will be treated as a single assignment for purposes of determining whether such
minimum amount has been met; (ii) each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender’s rights and

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obligations under this Agreement with
respect to the Loans, the risk participations in Letters of Credit and the Commitment assigned,
except that this clause (ii) shall not apply to rights in respect of Bid Loans; (iii) any
assignment of a Commitment must be approved by the Administrative Agent and the L/C Issuer (which
approvals shall not be unreasonably withheld or delayed) unless the Person that is the proposed
assignee is itself a Lender (whether or not the proposed assignee would otherwise qualify as an
Eligible Assignee); (iv) the assignment shall contain a representation by the Eligible Assignee to
the effect that none of the consideration used to make the purchase of the Commitment and Loans
under the applicable Assignment and Assumption constitutes “plan assets” as defined under ERISA and
that the rights and interests of the Eligible Assignee in and under the Loan Documents will not be
“plan assets” under ERISA; and (v) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with, unless waived by the
Administrative Agent in its sole discretion, a processing and recordation fee in the amount of
$3,500. Subject to acceptance and recording thereof by the Administrative Agent pursuant to
Subsection (c) of this Section, from and after the effective date specified in each Assignment and
Assumption, the Eligible Assignee thereunder shall be a party to this Agreement and, to the extent
of the interest assigned by such Assignment and Assumption, have (in addition to any such rights or
obligations then otherwise held by it) the rights and obligations of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Assumption, be released from its obligations under this Agreement (and, in the case
of an Assignment and Assumption 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 3.01, 3.04, 3.05 and 10.05 with respect to
facts and circumstances occurring prior to the effective date of such assignment). Upon request,
each Borrower (at its expense) shall execute and deliver a Note to the assignee Lender. Any
assignment or transfer by a Lender of rights or obligations under this Agreement that does not
comply with this Subsection 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 Subsection (d) of this
Section.

     (c) The Administrative Agent, acting solely for this purpose as an agent of the Borrowers,
shall maintain at the Administrative Agent’s Office a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and addresses of the
Lenders, and the Commitments of, and principal amounts of the Loans and L/C Obligations owing to,
each Lender pursuant to the terms hereof from time to time (the “Register”). The entries
in the Register shall be conclusive in the absence of manifest error, and the Borrowers, the
Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. The Register shall be available for inspection by the
Borrowers at any reasonable time and from time to time upon reasonable prior notice. In addition,
at any time that a request for a consent for a material or other substantive change to the Loan
Documents is pending, any Lender may request and receive from the Administrative Agent a copy of
the Register.

     (d) Any Lender may at any time, without the consent of, or notice to, any Borrower or the
Administrative Agent, sell participations to any Person (other than a natural person or a Borrower
or any of a 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 (including such Lender’s participations in L/C Obligations) 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 Borrowers, the Administrative Agent and the other Lenders shall
continue to deal solely and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells
such a participation shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of

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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, waiver or other modification described in
the first proviso to Section 10.01 that directly affects such Participant. Subject to
Subsection (e) of this Section, the Borrowers agree that each Participant shall be entitled to the
benefits of Sections 3.01, 3.04 and 3.05 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to Subsection (b) of this Section. To
the extent permitted by law, each Participant also shall be entitled to the benefits of Section
10.09 as though it were a Lender, provided such Participant agrees to be subject to
Section 2.13 as though it were a Lender.

     (e) A Participant shall not be entitled to receive any greater payment under Section
3.01 or 3.04 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 Borrowers’ 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 3.01
unless the Borrowers are notified of the participation sold to such Participant and such
Participant agrees, for the benefit of the Borrowers, to comply with Section 3.01 as though
it were a Lender.

     (f) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement (including under its Note, if any) 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.

     (g) As used herein, the following terms have the following meanings:

     “Eligible Assignee” means (a) a Lender; (b) an Affiliate of a Lender;
(c) an Approved Fund; and (d) any other Person (other than a natural person)
approved by (i) the Administrative Agent and the L/C Issuer, and (ii) unless an
Event of Default has occurred and is continuing, the Borrowers (each such approval
not to be unreasonably withheld or delayed); provided that notwithstanding
the foregoing, “Eligible Assignee” shall not include any Borrower or any of the
Borrowers’ Affiliates or Subsidiaries.

     “Fund” means any Person (other than a natural person) that is (or will
be) engaged in making, purchasing, holding or otherwise investing in commercial
loans and similar extensions of credit in the ordinary course of its activities.

     “Approved Fund” means any Fund 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.

     “Assignee Group” means two or more Eligible Assignees that are
Affiliates of one another or two or more Approved Funds managed by the same
investment advisor.

     (h) Notwithstanding anything to the contrary contained herein, any Lender (a “Granting
Lender”) may grant to a special purpose funding vehicle identified as such in writing from time
to time by the Granting Lender to the Administrative Agent and the Borrowers (an “SPC”) the
option to provide all or any part of any Committed Loan that such Granting Lender would otherwise
be obligated to make pursuant to this Agreement; provided that (i) nothing herein shall
constitute a commitment by any SPC to fund any Committed Loan or any L/C Obligation and (ii) if an
SPC elects not to exercise such option or otherwise fails to make all or any part of such Committed
Loan, the Granting Lender shall be obligated to make such Committed Loan pursuant to the terms
hereof or, if it fails to do so, to make such payment to

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the Administrative Agent as is required
under Section 2.12(c)(ii). Each party hereto hereby agrees that (i) neither the grant to
any SPC nor the exercise by any SPC of such option shall increase the costs or expenses or
otherwise increase or change the obligations of the Borrowers under this Agreement (including their
obligations under Section 3.04), (ii) no SPC shall be liable for any indemnity or similar
payment obligation under this Agreement for which a Lender would be liable, and (iii) the Granting
Lender shall for all purposes, including the approval of any amendment, waiver or other
modification of any provision of any Loan Document, remain the lender of record hereunder. The
making of a Committed Loan by an SPC hereunder shall utilize the Commitment of the Granting Lender
to the same extent, and as if, such Committed Loan were made by such Granting Lender. In
furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the
termination of this Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior debt of any SPC, it will not
institute against, or join any other Person in instituting against, such SPC any bankruptcy,
reorganization, arrangement, insolvency, or liquidation proceeding under the laws of the United
States or any State thereof. Notwithstanding anything to the contrary contained herein, any SPC
may (i) with notice to, but without prior consent of, the Borrowers and the Administrative Agent
and without paying any processing fee therefor, assign all or any portion of its right to receive
payment with respect to any Committed Loan to the Granting Lender and (ii) disclose on a
confidential basis any non-public information relating to its funding of Committed Loans to any
rating agency, commercial paper dealer or provider of any surety or Guarantee or credit or
liquidity enhancement to such SPC.

     (i) Notwithstanding anything to the contrary contained herein, if at any time Bank of America
assigns all of its Commitment and Loans pursuant to Subsection (b) above, Bank of America may, upon
30 days’ notice to the Borrowers and the Lenders, resign as L/C Issuer. In the event of any such
resignation as L/C Issuer, the Borrowers shall be entitled to appoint from among the Lenders a
successor L/C Issuer hereunder; provided, however, that no failure by the Borrowers
to appoint any such successor shall affect the resignation of Bank of America as L/C Issuer. If
Bank of America resigns as L/C Issuer, it shall retain all the rights and obligations of the L/C
Issuer hereunder with respect to all Letters of Credit outstanding as of the effective date of its
resignation as L/C Issuer and all L/C Obligations with respect thereto (including the right to
require the Lenders to make Base Rate Committed Loans or fund risk participations in Unreimbursed
Amounts pursuant to Section 2.04(c)). Upon the appointment of a successor L/C Issuer and
the receipt of any necessary approvals from any beneficiaries of any Letters of Credit and any
insurance regulatory authorities, (a) such successor shall succeed to and become vested with all of
the rights, powers, privileges and duties of the retiring L/C Issuer and (b) the successor L/C
Issuer shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding
at the time of such succession or make other arrangements satisfactory to Bank of America to
effectively assume the obligations of Bank of America with respect to such Letters of Credit.

     10.08. Confidentiality. Each of the Administrative Agent and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed (a)
to its Affiliates and to its and its Affiliates’ respective partners, directors, officers,
employees, agents, advisors and representatives
(it being understood that the Persons to whom such disclosure is made will be informed of the
confidential nature of such Information and instructed to keep such Information confidential), (b)
to the extent requested by any regulatory authority purporting to have jurisdiction over it or its
Affiliates (including any self-regulatory authority, such as the National Association of Insurance
Commissioners), (c) to the extent required by applicable laws or regulations or by any subpoena or
similar legal process, (d) to any other party hereto, (e) 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, (f)
subject to an agreement containing provisions substantially the same as those of this Section, to
(i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its
rights or obligations under this

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Agreement or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to any Borrower and its obligations, (g)
with the consent of any Borrower or (h) to the extent such Information (x) becomes publicly
available other than as a result of a breach of this Section by such Person or (y) becomes
available to the Administrative Agent or any Lender on a nonconfidential basis from a source other
than any Borrower. In the event that the Administrative Agent or any Lender becomes legally
compelled to disclose any confidential Information pursuant to paragraph (c) of this Section
10.08, the Administrative Agent or such Lender shall, to the extent permitted by law, give
prompt written notice of that fact to the Borrowers prior to the disclosure so that the Borrowers
may seek an appropriate remedy to prevent or limit such disclosure and the Administrative Agent or
such Lender shall cooperate reasonably (at the expense of the Borrowers) with the Borrowers in
seeking such remedy. For purposes of this Section, “Information” means all information
received from any Borrower or any of its Subsidiaries relating to any Borrower or any Subsidiary or
any of their respective businesses, other than any such information that is available to the
Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by any Borrower
or any Subsidiary, provided that, in the case of information received from any Borrower or
any Subsidiary after the date hereof, such information is clearly identified at the time of
delivery as confidential. 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. Each of the Administrative Agent,
the Lenders and the L/C Issuer acknowledges that (a) the Information may include material
non-public information concerning the Borrowers, (b) it has developed compliance procedures
regarding the use of material non-public information and (c) it will handle such material
non-public information in accordance with applicable Law, including United States Federal and state
securities Laws.

     10.09. Set-off. In addition to any rights and remedies of the Lenders provided by law, upon the
occurrence and during the continuance of any Event of Default, each Lender is authorized at any
time and from time to time, without prior notice to any Borrower, any such notice being waived by
the Borrowers to the fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held by, and other
indebtedness at any time owing by, such Lender to or for the credit or the account of the
respective Loan Parties against any and all Obligations owing to such Lender hereunder or under any
other Loan Document, now or hereafter existing, irrespective of whether or not the Administrative
Agent or such Lender shall have made demand under this Agreement or any other Loan Document and
although such Obligations may be contingent or unmatured or denominated in a currency different
from that of the applicable deposit or indebtedness. Each Lender agrees promptly to notify the
Borrowers and the Administrative Agent after any such set-off and application made by such Lender;
provided, however, that the failure to give such notice shall not affect the
validity of such set-off and application.

     10.10. Interest Rate Limitation. Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or
agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious
interest permitted by applicable Law (the “Maximum Rate”). If the Administrative Agent or
any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest
shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to
the applicable Borrower. In determining whether the interest contracted for, charged, or received
by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent
permitted by applicable Law, (a) characterize any payment that is not principal as an expense, fee,
or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c)
amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest
throughout the contemplated term of the Obligations hereunder.

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     10.11. Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same
instrument.

     10.12. Integration. This Agreement, together with the other Loan Documents, comprises the complete
and integrated agreement of the parties on the subject matter hereof and thereof and supersedes all
prior agreements, written or oral, on such subject matter. In the event of any conflict between
the provisions of this Agreement and those of any other Loan Document, the provisions of this
Agreement shall control; provided that the inclusion of supplemental rights or remedies in
favor of the Administrative Agent or the Lenders in any other Loan Document shall not be deemed a
conflict with this Agreement. Each Loan Document was drafted with the joint participation of the
respective parties thereto and shall be construed neither against nor in favor of any party, but
rather in accordance with the fair meaning thereof.

     10.13. Survival of Representations and Warranties. All representations and warranties made
hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or
in connection herewith or therewith shall survive the execution and delivery hereof and thereof.
Such representations and warranties have been or will be relied upon by the Administrative Agent
and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or
on their behalf and notwithstanding that the Administrative Agent or any Lender may have had notice
or knowledge of any Default at the time of any Credit Extension, and shall continue in full force
and effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied
or any Letter of Credit shall remain outstanding.

     10.14. Severability. If any provision of this Agreement or the other Loan Documents is held to be
illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining
provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby
and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or
unenforceable provisions with valid provisions the economic effect of which comes as close as
possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a
provision in a particular jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

     10.15. Mitigation of Obligations; Replacement of Lenders

     (a) If any Lender requests compensation under Section 3.04, or if any Borrower is
required to pay any additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 3.01, then such Lender shall, upon the request of such
Borrower, use reasonable efforts to designate a different Lending Office for funding or booking its
Loans hereunder or to assign its rights and obligations hereunder to another of its offices,
branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i)
would eliminate or reduce amounts payable pursuant to Section 3.04 or 3.01, as the
case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender. Each Borrower hereby agrees to
pay all reasonable costs and expenses incurred by any Lender in connection with any such
designation or assignment.

     (b) Under any circumstances set forth herein providing that the Borrowers shall have the right
to replace a Lender as a party to this Agreement, the Borrowers may, upon notice to such Lender and
the Administrative Agent, replace such Lender by causing such Lender to assign its Commitment (with
the assignment fee to be paid by the Borrowers in such instance) pursuant to Section
10.07(b) to one or more other Lenders or Eligible Assignees procured by the Borrowers;
provided, however, that if the Borrowers elect to exercise such right with respect
to any Lender pursuant to Section 3.06(b), it shall be obligated to replace all Lenders
that have made requests for compensation on a similar basis and in a similar amount pursuant to
Section 3.01 or 3.04. Upon the making of any such assignment, the

Five-Year Credit Agreement

66

 

Borrowers shall
(x) pay in full any amounts payable pursuant to Section 3.05 and (y) provide appropriate
assurances and indemnities (which may include letters of credit) to the L/C Issuer as it may
reasonably require with respect to any continuing obligation to fund participation interests in any
L/C Obligations then outstanding.

     10.16. Governing Law.

     (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE.

     (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK CITY OR OF THE UNITED
STATES FOR THE SOUTHERN DISTRICT OF SUCH STATE, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT,
EACH BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER CONSENTS, FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. TO THE EXTENT LEGALLY PERMISSIBLE,
EACH BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING
ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY
NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT
OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO. TO THE EXTENT LEGALLY PERMISSIBLE, EACH
BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER WAIVES PERSONAL SERVICE OF ANY SUMMONS,
COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH
STATE.

     10.17. Waiver of Right to Trial by Jury. EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR
RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN
DOCUMENT OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND
CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
WITHOUT A JURY AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF
THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE
WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

     10.18. No Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction
contemplated hereby (including in connection with any amendment, waiver or other modification
hereof or of any other Loan Document), the Borrowers acknowledge and agree that: (i) (A) the
arranging and other services regarding this Agreement provided by the Administrative Agent and the
Arrangers are arm’s-length commercial transactions between the Borrowers, on the one hand, and the
Administrative Agent and the Arrangers, on the other hand, (B) each of the Borrowers has consulted
its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and
(C) each of the Borrowers is capable of evaluating, and understands and accepts, the terms, risks
and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A)
each of the Administrative Agent and the Arrangers is and has been acting solely as a principal
and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will
not be acting as an

Five-Year Credit Agreement

67

 

advisor, agent or fiduciary for any Borrower or any other Person and (B)
neither the Administrative Agent nor any Arranger has any obligation to any Borrower with respect
to the transactions contemplated hereby except those obligations expressly set forth herein and in
the other Loan Documents; and (iii) the Administrative Agent and the Arrangers and their respective
Affiliates may be engaged in a broad range of transactions that involve interests that differ from
those of the Borrowers and their respective Affiliates, and neither the Administrative Agent nor
any Arranger has any obligation to disclose any of such interests to the Borrowers or any of their
respective Affiliates. To the fullest extent permitted by law, each of the Borrowers hereby waives
and releases any claims that it may have against the Administrative Agent and the Arrangers with
respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect
of any transaction contemplated hereby.

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

     10.20. Waiver of Notice of Termination of Existing Credit Agreements. By its execution hereof, the
Administrative Agent and each of the Lenders that is a party to either of the Existing Credit
Agreements hereby waives the five Business Days’ notice required under Section 2.06 of
each of the Existing Credit Agreement in connection with the termination of the commitments under
each of the Existing Credit Agreements on the Closing Date.

Five-Year Credit Agreement

68

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 
	 	METLIFE, INC.

 	 
	 	By:  	/s/ Eric T. Steigerwalt
 	 
	 	 	Name:  	Eric T. Steigerwalt 	 
	 	 	Title:  	SVP & Treasurer 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 
	 	METLIFE FUNDING, INC.

 	 
	 	By:  	/s/ H. Philip Salmon
 	 
	 	 	H. Philip Salmon 	 
	 	 	Assistant Treasurer 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as a Lender, as

Administrative Agent and as L/C Issuer

 	 
	 	By:  	/s/ Jeffrey M. Shaver
 	 
	 	 	Name:  	Jeffrey M. Shaver 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL 

ASSOCIATION, as a Lender and as Syndication

Agent

 	 
	 	By:  	/s/ Karen Hanke
 	 
	 	 	Name:  	Karen Hanke 	 
	 	 	Title:  	Director 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written.

	 	 	 	 	 
	 	CITICORP USA, INC., as a Lender 

 	 
	 	By:  	/s/ Cynthia Priest
 	 
	 	 	Name:  	Cynthia Priest 	 
	 	 	Title:  	Director 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 
	 	DEUTSCHE BANK AG NEW YORK 

BRANCH, as a Lender

 	 
	 	By:  	/s/ John McGill
 	 
	 	 	Name:  	John McGill 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                   /s/ Michael Campites
 	 
	 	 	Name:  	Michael Campites 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A., as a Lender

 	 
	 	By:  	/s/ Erin O’Rourke
 	 
	 	 	Name:  	Erin O’Rourke 	 
	 	 	Title:  	Executive Director 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 
	 	WILLIAM STREET COMMITMENT

CORPORATION (Recourse only to assets of

William Street Commitment Corporation), as a

Lender

 	 
	 	By:  	/s/ Mark Walton
 	 
	 	 	Name:  	Mark Walton 	 
	 	 	Title:  	Assistant Vice President 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 
	 	BARCLAYS BANK PLC, as a Lender

 	 
	 	By:  	/s/ Nicholas Bell
 	 
	 	 	Name:  	Nicholas Bell 	 
	 	 	Title:  	Director 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 
	 	THE ROYAL BANK OF SCOTLAND,

BY: Greenwich Capital Markets, Inc., as agent

for The Royal Bank of Scotland plc,

as a Lender

 	 
	 	By:  	/s/ David Howes
 	 
	 	 	Name:  	David Howes 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 
	 	CALYON NEW YORK BRANCH, as a Lender

 	 
	 	By:  	/s/ William S. Denton
 	 
	 	 	Name:  	William S. Denton 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                  /s/ Walter Jay Buckley
 	 
	 	 	Name:  	Walter Jay Buckley 	 
	 	 	Title:  	Managing Director 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 
	 	HSBC BANK USA, N.A., as a Lender

 	 
	 	By:  	/s/ Kenneth J. Johnson
 	 
	 	 	Name:  	Kenneth J. Johnson 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 
	 	LEHMAN BROTHERS BANK, FSB, as a Lender

 	 
	 	By:  	/s/ Janine M. Shugan
 	 
	 	 	Name:  	Janine M. Shugan 	 
	 	 	Title:  	Authorized Signatory 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 
	 	MERRILL LYNCH BANK USA, as a Lender

 	 
	 	By:  	/s/ Louis Alder
 	 
	 	 	Name:  	Louis Alder 	 
	 	 	Title:  	Director 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 	 	 
	 	 	UBS LOAN FINANCE LLC, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Irja R. Otsa	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Irja R. Otsa	 	 
	 

	 	 	 	Title: Associate Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David B. Julie	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: David B. Julie	 	 
	 

	 	 	 	Title: Associate Director	 	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first above written.

	 	 	 	 	 	 	 
	 	 	ING BANK N.V., as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Caroline Claessens	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Caroline Claessens	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Theo Zwager	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Theo Zwager	 	 
	 

	 	 	 	Title: Director	 	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written.

	 	 	 	 	 	 	 
	 	 	SOCIETE GENERALE, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ William Aishton	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: William Aishton	 	 
	 

	 	 	 	Title: Vice President	 	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written.

	 	 	 	 	 	 	 
	 	 	ABN AMRO BANK N.V., as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Neil R. Stein	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Neil R. Stein	 	 
	 

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael DeMarco	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Michael DeMarco	 	 
	 

	 	 	 	Title: Vice President	 	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 	 	 
	 	 	BNP PARIBAS, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Phil Truesdale	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Phil Truesdale	 	 
	 

	 	 	 	Title: Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Nair P. Raghu	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Nair P. Raghu	 	 
	 

	 	 	 	Title: Vice President	 	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 	 	 
	 	 	CREDIT SUISSE, acting through its

Cayman Islands Branch, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jay Chall	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Jay Chall	 	 
	 

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Alain Schmid	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Alain Schmid	 	 
	 

	 	 	 	Title: Assistant Vice President	 	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written.

	 	 	 	 	 	 	 
	 	 	PNC BANK N.A., as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kirk Seagers	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Kirk Seagers	 	 
	 

	 	 	 	Title: Vice President	 	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 
	 	STATE STREET BANK AND TRUST
COMPANY, as a Lender

 	 
	 	By:  	/s/ Lise Anne Boutiette
 	 
	 	 	Name:  	Lise Anne Boutiette      	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 
	 	THE NORTHERN TRUST COMPANY, as a
Lender

 	 
	 	By:  	/s/ Chris McKean
 	 
	 	 	Name:  	Chris McKean 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as a
Lender

 	 
	 	By:  	/s/ Peter I. Bystol
 	 
	 	 	Name:  	Peter I. Bystol 	 
	 	 	Title:  	Assistant Vice  President 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written.

	 	 	 	 	 
	 	MELLON BANK, N.A., as a Lender

 	 
	 	By:  	/s/ Donald G. Cassidy, Jr.
 	 
	 	 	Name:  	Donald G. Cassidy, Jr. 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 
	 	BANCO SANTANDER CENTRAL HISPANO,
S.A., as a Lender

 	 
	 	/s/ Sen Louie
 	 
	 	Sen Louie  	 
	 	Vice President 	 
	 
	 	 	 
	 	/s/ Jorge Saavedra
 	 
	 	Jorge Saavedra 	 
	 	Executive Director 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first above written.

	 	 	 	 	 
	 	THE ROYAL BANK OF CANADA, as a Lender

 	 
	 	By:  	/s/ Evan Glass
 	 
	 	 	Name:  	Evan Glass      	 
	 	 	Title:  	Authorized Signatory 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first above written.

	 	 	 	 	 
	 	STANDARD CHARTERED BANK, as a Lender

 	 
	 	By:  	/s/ James Conti
 	 
	 	 	Name:  	James Conti 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	/s/ Andrew Y. Ng
 	 
	 	 	Name:  	Andrew Y. Ng     	 
	 	 	Title:  	Director

Standard Chartered Bank NY 	 
	 

Signature Page to MetLife

Five-Year Credit Agreement

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