Document:

exv10w1

 

EXHIBIT 10.1

	 	 	 	 	 
	[FAGEN, INC. LOGO]

	 	 	 	501 West Hwy. 212, P.O. Box 159
	 

	 	www.fageninc.com
	 	Granite Falls, MN 56241
	 

	 	 	 	320-564-3324
	 

	 	 	 	320-564-3278 fax

* Portions omitted pursuant to a request for confidential treatment and filed separately with
the Securities and Exchange Commission.

April 14, 2006

Steve Eastman

Homeland Energy Solutions LLC

PO Box 291

Riceville, IA 50466

     Re:      Homeland Energy Solutions LLC Ethanol Project

Dear Steve:

     This letter of intent will confirm our discussions regarding the proposed terms and conditions
under which Fagen, Inc. (“Fagen”) will enter into exclusive negotiations with Homeland
Energy Solutions LLC (“Owner”) to implement the transaction described in Paragraph 1 below
(the “Transaction”). (Fagen and Owner are referred to herein individually as a
“Party” and collectively as the “Parties”). This letter, if executed and returned
by you within thirty (30) days of the date hereof, will constitute a letter of intent between us
(the “Letter of Intent”).

     Fagen and Owner (then known as Hometown Energy, LLC) entered into a letter of intent dated
December 29, 2005, for the Transaction (the “Initial Letter of Intent”) and letter of
intent dated March 22, 2006 (“Second Letter of Intent”). Fagen and Owner have agreed to
replace the Initial Letter of Intent and Second Letter of Intent with this Letter of Intent. This
Letter of Intent supersedes and replaces the Initial Letter of Intent and Second Letter of Intent
in their entirety.

     The Parties agree to effect the Transaction subject only to the execution and delivery (in
each case in a form satisfactory to Fagen) of a definitive Design-Build Agreement and other
ancillary instruments and agreements (the “Transaction Documents”). The Transaction
Documents will be executed and delivered by the parties thereto no later than December 31, 2008
(the “Closing Date”); provided that the Transaction Documents may, if agreed to by the
Parties, provide for extensions necessary to secure any consents and approvals of persons (other
than affiliates of the Parties) on terms reasonable to the Parties.

	1.	 	The Transaction. The Parties agree that the Transaction will consist of the following:

	 	(a)	 	Fagen agrees to provide Owner with those services as described in this Letter
of
Intent which are necessary for Owner to develop a detailed description of a one
hundred (100) million gallons per year (“MGY”) natural gas-fired dry grind

 

 

Homeland Energy Solutions LLC

Letter of Intent

April 14, 2006

Page 2 of 14

	 	 	 	ethanol production facility located at New Hampton, Iowa (the “Plant”) and
to establish a price for which Fagen would provide design, engineering, procurement
of equipment and construction services for the Plant. The description of the Plant
will be sufficiently detailed to permit an analysis of the Owner’s lump-sum cost to
develop the Plant and to develop an economic pro forma sufficient to determine if
the Plant can be financed.

	 	(b)	 	Fagen will also provide Owner with assistance in evaluating, from both a technical
and business perspective, Owner’s organizational options, the appropriate location of
the Plant, and business plan development. Fagen will assume no risk or liability of
representation or advice to Owner by assisting in evaluating the above and all
decisions made regarding feasibility, financing, and business risks are the Owner’s
sole responsibility and liability. Owner acknowledges that Fagen has no control over
cost of labor, materials, equipment, or services furnished by others, over other
contractors’ methods of determining prices, or other competitive bidding or market
conditions. Fagen’s estimates of project construction cost will be made on the basis of
its experience and qualifications and will represent Fagen’s best judgment as
experienced and qualified professionals familiar with the construction industry. Fagen
does not guarantee that proposals, bids, or actual construction cost will not vary from
its estimates of project cost and Owner acknowledges the same.
	 
	 	(c)	 	Fagen will also provide Owner with conceptual design and technical information
required to support Owner’s application for a construction air permit prior to the
commencement of Plant Construction.
	 
	 	(d)	 	If Owner determines that the Plant is economically feasible and desires to
proceed with the development of the Plant, then Owner agrees to enter into a Lump Sum
Design-Build contract with Fagen for the design, procurement of equipment and
construction of the Plant (the “Design-Build Agreement”).
	 
	 	(e)	 	Owner shall offer Fagen the right to invest in the project. Unless otherwise
specifically agreed between Fagen and Owner, such investment shall be offered on the
same terms and conditions as all other investors.
	 
	 	(f)	 	Owner agrees that the Design-Build Agreement will be Fagen’s chosen form of
Design-Build Agreement and will contain among other things, those terms and
conditions set forth in the General Terms and Conditions section of this Letter of
Intent.

	2.	 	Contract Price. Owner shall pay Fagen One Hundred Nine Million Seven Hundred Six Thousand
Seven Hundred Eighty-eight Dollars ($109,706,788.00) (the “Contract Price”) as full
consideration to Fagen for full and complete performance of the services described in the

 

 

Homeland Energy Solutions LLC

Letter of Intent

April 14, 2006

Page 3 of 14

	 	 	Design-Build Agreement and all costs incurred in connection therewith.

	 	(a)	 	The Contract Price shall not include any costs related to union labor or
prevailing wage requirements. If any action by Owner, a change in Applicable Law, or a
Governmental Authority (as those terms are defined in the Design-Build Agreement)
acting pursuant to a change in Applicable Law, shall require Fagen to employ union
labor or compensate labor at prevailing wages, the Contract Price shall be adjusted
upwards to include any increased costs associated with such labor or wages. Such
adjustment shall include, but not be limited to, increased labor, subcontractor, and
material and equipment costs resulting from any union or prevailing wage requirement;
provided, however, that if an option is made available to either employ union labor, or
to compensate labor at prevailing wages, such option shall be at Fagen’s sole
discretion and that if such option is executed by Owner without Fagen’s agreement,
Fagen shall have the right to terminate this Letter of Intent or the Design-Build
Agreement, as applicable, and receive compensation pursuant to Paragraph 4(c) hereof or
the terms of the Design-Build Agreement, whichever is applicable.
	 
	 	(b)	 	If the Construction Cost Index published by Engineering News-Record Magazine
(“CCI”) for the month in which a Notice to Proceed is given to Fagen is greater
than 7540.38 (September 2005), the Contract Price shall be adjusted to reflect such
increase.

	3.	 	General Terms and Conditions. The consummation of the Transaction will be subject to the
Design-Build Agreement containing the following conditions:

	 	(a)	 	Fagen will have no responsibility for and will not perform any site preparation
work. Owner’s site responsibilities will include, but will not be limited to:

	 	i.	 	Obtaining land and legal authority to use the site
for its intended purpose;
	 
	 	ii.	 	site grading including soil stabilization and the
costs connected therewith;
	 
	 	iii.	 	final grading, seeding, and mulching;
	 
	 	iv.	 	site security, including any site fencing;
	 
	 	v.	 	procuring boundary and topographic surveys;
	 
	 	vi.	 	procuring soil borings and geotechnical reports;
	 
	 	vii.	 	obtaining all operating permits, including any
fees, bonding, and required testing;
	 
	 	viii.	 	obtaining storm water runoff permit;
	 
	 	ix.	 	obtaining any necessary pollutant elimination
discharge permit;
	 
	 	x.	 	obtaining a natural gas supply and service
agreement and providing all gas piping to the use points, providing
burner tip pressures as specified by Fagen, and supplying a digital
flowmeter;
	 
	 	xi.	 	securing temporary and permanent electrical
service, including all infrastructure design and installation for any
line/service extensions,

 

 

Homeland Energy Solutions LLC

Letter of Intent

April 14, 2006

Page 4 of 14

	 	 	 	substation, primary feed and metering system,
and on-site electrical distribution system up to and including the
service transformers;
	 
	 	xii.	 	supplying a water source, storage, and water supply
lines of appropriate quality and quantity;
	 
	 	xiii.	 	paying for a water pre-treatment system should the
project require such a system (procurement and installation by Fagen);
	 
	 	xiv.	 	providing wastewater discharge piping, septic tank
and drainfield or connect to a municipal system as required for the
sanitary sewer requirements of the Plant;
	 
	 	xv.	 	providing and maintain required ditches and
permanent roads;
	 
	 	xvi.	 	constructing, furnishing, and equipping the
administration building;
	 
	 	xvii.	 	providing maintenance and power equipment and
spare parts;
	 
	 	xviii.	 	providing all rail design, engineering, and construction, including any
railroad permits or approvals;
	 
	 	xix.	 	supplying drawings of rail system and
administration building to Fagen; and
	 
	 	xx.	 	paying for the required fire protection system for
the Plant (procurement
and installation by Fagen).

	 	(b)	 	Owner will enter into a Phase I and Phase II Engineering Services Agreement
with Fagen Engineering, LLC. The Phase I and Phase II Engineering Services Agreement
will provide for commencement of work on the Phase I and Phase II engineering for the
project as set forth therein. The Phase I engineering shall consist of engineering and
design of the Plant site and shall include: property layout; grading, drainage and
erosion control plan drawings; roadway alignment drawings; culvert cross sections and
details; and seeding and landscaping, if required. The Phase II engineering shall
consist of engineering and design of site work and utilities for the Plant, all within
the property line of the Plant, including: property layout; site grading and drainage
drawings; roadway alignment; all utility layout including fire loop, potable water,
well water if applicable, sanitary sewer, utility water blowdown, and natural gas;
geometric layout; site utility piping tables; tank farm layout; tank farm details;
sections and details drawing, if required, and miscellaneous details drawing, if
required. Owner will pay Fagen Engineering, LLC [*] for such engineering services
pursuant to the terms of that agreement, the full amount of which shall be included in
and credited to the Contract Price. Notwithstanding the foregoing sentence, if a
Notice to Proceed is not issued pursuant to the terms of the Design-Build Agreement, or
Financial Closing is not obtained, then Fagen Engineering, LLC shall keep the full
amount paid under the Phase I and Phase II Engineering Services Agreement as
compensation for the services provided thereunder.

 

			
	*	 	Portion omitted pursuant to a request for confidential treatment and filed separately with the
Securities and Exchange Commission.

 

 

Homeland Energy Solutions LLC

Letter of Intent

April 14, 2006

Page 5 of 14

	 	(c)	 	Fagen will provide reasonable assistance to Owner in obtaining Owner’s permits,
approvals and licenses.
	 
	 	(d)	 	Owner will provide: surveys describing the property’s boundaries; geotechnical
studies describing subsurface conditions; temporary and permanent easements, zoning and
other requirements and encumbrances to enable Fagen to perform the work; a legal
description of the site; as-built and record drawings of any existing structures;
environmental studies, reports, and statements describing the environmental conditions,
including hazardous conditions at the site.
	 
	 	(e)	 	Owner will be responsible for securing and executing all necessary real estate
agreements to secure the site and is responsible for all costs incurred in obtaining
those agreements.
	 
	 	(f)	 	Fagen may subcontract portions of the work.
	 
	 	(g)	 	Fagen will provide two (2) weeks of training for all of Owner’s employees and,
if applicable, Owner’s Operator’s employees required for the operation and maintenance
of the Plant.
	 
	 	(h)	 	Owner must obtain Financial Closing prior to the issuance of a Notice to
Proceed.
	 
	 	(i)	 	Owner will pay all reasonable costs incurred by Fagen for frost removal so that
winter construction can proceed. Such costs will be in addition to, and not included
in, the lump sum price.
	 
	 	(j)	 	All drawings, specifications, calculations, data, notes and other materials and
documents, including electronic data furnished by Fagen to Owner under the Design-Build
Agreement (“Work Product”) will be instruments of service and Fagen will retain
the ownership and property interests therein, including copyrights thereto.
	 
	 	(k)	 	Fagen will utilize certain proprietary property and information of ICM, Inc., a
Kansas corporation (“ICM”), in the design and construction of the project, and
may incorporate proprietary property and information of ICM into the project. Owner’s
use of the proprietary property and information of ICM shall be governed by the terms
and provisions of a license agreement between Owner and ICM which shall be attached as
an exhibit to the Design-Build Agreement. Owner will be responsible for negotiating
any requested changes to the ICM license directly with ICM, not Fagen.
	 
	 	(l)	 	Upon payment in full under the Design-Build Agreement, Fagen will grant Owner

 

 

Homeland Energy Solutions LLC

Letter of Intent

April 14, 2006

Page 6 of 14

	 	 	 	a limited license to the Work Product for use in connection with the operation,
maintenance, and repair of the Plant including the interconnection of, but not design
of, any future expansions to the Plant. The limited license will not permit Owner to
modify the Plant in any way that would increase the distillation, dehydration or
evaporation capacity of the Plant.
	 
	 	(m)	 	Work will commence following receipt of Owner’s written valid notice to proceed
(“Notice to Proceed”). The Notice to Proceed cannot be given until (1) the
Owner has title to the real estate on which the project will be constructed; (2) the
site work required of Owner is completed; (3) the air permit(s) and/or other applicable
local, state or federal permits necessary for construction to begin have been obtained;
(4) Owner has obtained Financial Closing; (5) if applicable, Owner executes a sales tax
exemption certificate and provides to Fagen; (6) Owner provides the name of its
property/all-risk insurance carrier and the specific requirements for fire protection;
(7) Owner has provided an insurance certificate or copy of insurance policy
demonstrating that Owner has obtained builder’s risk
insurance; and (8) Fagen has provided Owner written notification of its acceptance
of the Notice to Proceed. If Notice to Proceed is not issued within one hundred and
eighty (180) days of the effective date of the Design-Build Agreement, that
agreement shall terminate, thus releasing Fagen of all obligations.
	 
	 	(n)	 	“Substantial Completion” will be the date on which the Plant
construction has been completed to a point that the Plant is ready to grind the first
batch of corn for producing ethanol and begin operation for its intended use as a one
hundred (100) MGY dry grind ethanol production facility. No production capacity is
guaranteed on the Substantial Completion date, but the Plant is largely completed as of
that date.
	 
	 	(o)	 	Substantial Completion will occur within Five Hundred and Fifteen (515) days
after the date of the Notice to Proceed.
	 
	 	 	 	“Final Completion” will be achieved once Owner reasonably determines that:
Substantial Completion has been achieved; any outstanding amounts owed by Fagen to
Owner have been paid; remaining items of work have been completed; clean-up of the
site has been completed; all permits required to have been obtained by Fagen have
been obtained; certain information including an affidavit stating that there are no
outstanding liens, a release from further compensation, consent to final payment,
and a hard copy of the as-built plans (which will remain Work Product) has been
provided to Owner; releases and waivers of all claims and liens from Fagen and
subcontractors have been provided; and the Performance Tests have been successfully
completed. Final Completion will occur no more than ninety (90) days after the
actual Substantial Completion date.

 

 

Homeland Energy Solutions LLC

Letter of Intent

April 14, 2006

Page 7 of 14

	 	 	 	The 90-day period between Substantial
Completion and Final Completion will be tied directly to actual Substantial
Completion. By way of example, if Substantial Completion is achieved 10 days early,
then the 90-day period to Final Completion would begin on that earlier date.
	 
	 	(p)	 	Fagen will demonstrate certain performance guarantee criteria through
performance testing performed following Substantial Completion but prior to Final
Completion (“Performance Tests”). Air permit testing shall be done by a third
party contractor retained by Owner.
	 
	 	(q)	 	Owner will take control of the Plant after completion and acceptance of the
Performance Tests. The Performance Tests will be completed by Owner’s personnel under
Fagen’s direction.
	 
	 	(r)	 	Fagen will pay liquidated damages for each day past 90 days after Substantial
Completion that Final Completion is not attained. Fagen’s liability for liquidated
damages shall be capped at and shall not exceed Two Hundred and Fifty Thousand
Dollars ($250,000).
	 
	 	(s)	 	The aggregate liability of Fagen to Owner (or any successor thereto or assignee
thereof) for any and all claims and/or liabilities arising out of or relating in any
manner to the work or to Fagen’s performance of its obligations under the Design-Build
Agreement, whether based on contract, tort (including negligence), strict liability, or
otherwise, shall not exceed the Greater of (1) Ten Percent (10%) of the Contract Price
or (2) the amount of insurance coverage available to respond to the claim or liability
under any policy of insurance provided by Fagen under the Design-Build Agreement.
	 
	 	(t)	 	The warranty period for work completed pursuant to the Design-Build Agreement
will extend for one year past Substantial Completion. The Warranty will not apply to
defects caused by abuse, alterations, or failure to maintain the work by persons other
than Fagen or anyone for whose acts Fagen may be liable. The warranty period will be
extended one day for each day that such part of the work repaired under such warranty
is malfunctioning or not in conformance with project requirements provided that Owner
must report such non-conformance or malfunction within seven (7) days of the appearance
of such non-conformance or malfunction.
	 
	 	(u)	 	Owner will pay Fagen a mobilization fee in the amount of Eight Million Dollars
($8,000,000.00) as soon as possible following the execution of the Design-Build
Agreement, and at the latest, at the earlier to occur of financial closing or the
issuance of a Notice to Proceed.

 

 

Homeland Energy Solutions LLC

Letter of Intent

April 14, 2006

Page 8 of 14

	 	(v)	 	Fagen will request payment and Owner will pay Fagen in accordance with the
following procedures:

	 	i.	 	Fagen will submit to Owner a request for payment
(an “Application for Payment”) on or before the twenty-fifth
(25th) day of each month beginning with the first month following the
acceptance of Notice to Proceed. Along with each Application for
Payment, Fagen will submit to Owner signed lien waivers for the work
included in the Application for Payment submitted for the immediately
preceding pay period and for which payment has been received.
	 
	 	ii.	 	The Application for Payment will constitute Fagen’s
representation that the work has been performed consistent with the
Transaction Documents and has progressed to the point indicated in the
Application for Payment. No additional documentation will be provided to
Owner in support of the Application for Payment. The work completed at
the site and the comparison of the Application for Payment against the
Schedule of Values shall provide sufficient substantiation to Owner of
the accuracy of the
Application for Payment. The Schedule of Values subdivides the work into
its respective parts, includes values for all items comprising the work, and
serves as the basis for the monthly progress payments.
	 
	 	iii.	 	The Application for Payment may request payment for
equipment and materials not yet incorporated into the project only if
Owner is satisfied that the materials and equipment are suitably stored
at the site or elsewhere and are protected by suitable insurance. Upon
payment, Owner will receive title to such equipment and materials.
	 
	 	iv.	 	Owner shall make payment within ten (10) days of
receipt of the Application for Payment. Failure to make such payment
will result in the accrual of interest at a rate of eighteen percent
(18%) per annum commencing five (5) days after the payment is due.
Failure to make such payment, except if due to appropriate withholding of
payment due to a good faith dispute, entitles Fagen to stop work.
	 
	 	v.	 	If Owner wishes to dispute any portion of the
Application for Payment, Owner must notify Fagen in writing at least five
(5) days prior to the date payment is due. Such notice must state the
specific amounts Owner intends to withhold, the reasons and contractual
basis for withholding, and the specific measures Fagen must take to
rectify Owner’s concerns. Regardless of a dispute as to a portion of the
Application for Payment, Owner must pay all undisputed amounts by the
payment due date.
	 
	 	vi.	 	Retainage on progress payments made pursuant to the
Design-Build Agreement will be capped at five percent (5%) of the total
price. Owner will retain ten percent (10%) of each payment up to a
maximum of five percent (5%) of the total Contract Price. Once five
percent (5%) of the total price has been retained, Owner will not retain
any additional amounts

 

 

Homeland Energy Solutions LLC

Letter of Intent

April 14, 2006

Page 9 of 14

	 	 	 	from subsequent payments. Owner will release retainage, less the amount equal to the value of subcontractor lien
waivers not yet obtained, upon completion of the Performance Tests.
	 
	 	vii.	 	Upon Final Completion, Fagen will deliver to Owner
a request for final payment. Owner will make the final payment within
thirty (30) days after the receipt of such request. Owner’s failure to
make Final Payment will void any and all warranties, whether express or
implied, provided by Fagen pursuant to the Agreement.

	 	(w)	 	Fagen will not be responsible for any hazardous condition encountered at the
site and may stop work in an affected area until such hazardous condition is removed by
Owner.
	 
	 	(x)	 	Fagen will not be responsible for differing site conditions including concealed
or latent physical conditions or subsurface conditions and will be entitled to a price
adjustment to the Contract Price to the extent that its cost and/or time of performance
is adversely impacted by the differing site conditions.
	 
	 	(y)	 	“Force Majeure Events” shall mean any cause or event beyond the
reasonable control of, and without the fault or negligence of a Party claiming Force
Majeure, including, without limitation, an emergency, floods, earthquakes, hurricanes,
tornadoes, adverse weather conditions not reasonably anticipated or acts of God;
sabotage; vandalism beyond that which could reasonably be prevented by a Party claiming
Force Majeure; terrorism; war; riots; fire; explosion; blockades; insurrection; strike;
slow down or labor disruptions (even if such difficulties could be resolved by
conceding to the demands of a labor group); economic hardship or delay in the delivery
of materials or equipment that is beyond the control of a Party claiming Force Majeure,
and action or failure to take action by any governmental authority after the effective
date of the Design-Build Agreement (including the adoption or change in any rule or
regulation or environmental constraints lawfully imposed by such governmental
authority), but only if such requirements, actions, or failures to act prevent or delay
performance; and inability, despite due diligence, to obtain any licenses, permits, or
approvals required by any governmental authority.
	 
	 	(z)	 	If Fagen is delayed at any time in the commencement or progress of the work due
to a delay in the delivery of, or unavailability of, essential materials or labor to
the project as a result of a significant industry-wide economic fluctuation or
disruption beyond the control of and without the fault of Fagen or its subcontractors
which is experienced or expected to be experienced by certain markets providing
essential materials, equipment or labor to the project during the performance of the
work and such economic fluctuation or disruption adversely impacts the price,
availability, and delivery timeframes of essential materials and

 

 

Homeland Energy Solutions LLC

Letter of Intent

April 14, 2006

Page 10 of 14

	 	 	 	equipment (such event an “Industry-Wide Disruption”), Fagen shall be entitled to an equitable
extension of the Contract Time on a day-for-day basis equal to such delay. The Owner
and Fagen shall undertake reasonable steps to mitigate the effect of such delays.
Notwithstanding any other provision to the contrary, Fagen shall not be liable to the
Owner for any expenses, losses or damages arising from a delay, or unavailability of,
essential materials or labor to the project as a result of an Industry-Wide Disruption.
	 
	 	(aa)	 	The Transaction will be governed by the laws of the State of Minnesota.

	4.	 	Exclusivity, No Solicitation or Negotiations.

	 	(a)	 	Neither Owner, nor its affiliates, shareholders, members or other equity
owners, or their officers, representatives, agents or employees will solicit or
negotiate, directly or indirectly, with any third party to obtain the services
contemplated by this Letter of Intent.
	 
	 	(b)	 	During the term of this Letter of Intent the Owner agrees that Fagen will have
the exclusive right to provide to Owner the services contemplated by the Letter of
Intent. Developer and Owner will not disclose any information related to this Letter of
Intent to a competitor or prospective competitor of Fagen.
	 
	 	(c)	 	Should Owner choose not to develop the project or to develop or pursue a
relationship with a company other than Fagen to provide the preliminary engineering or
design-build services for the project, then Owner will reimburse Fagen for all expenses
Fagen has incurred in connection with the project based upon Fagen’s standard rate
schedule plus all third party costs incurred from the date of the Initial Letter of
Intent. Such expenses include, but are not limited to, labor rates and reimbursable
expenses such as legal charges for document review and preparation, travel expenses,
reproduction costs, long distance phone costs, and postage.
	 
	 	(d)	 	In the event Fagen’s services are terminated by Owner, title to the technical
data, which may include preliminary engineering drawings and layouts and proprietary
process related information will remain with Fagen and any copies thereof, will be
returned to Fagen.
	 
	 	(e)	 	Owner acknowledges that the technical data provided by Fagen under this Letter
of Intent is preliminary and may not be suitable for construction. Owner agrees that
any use of such technical data following termination of Fagen’s services will be at
Owner’s sole risk.

	5.	 	Confidentiality. Owner will hold in confidence and will use only for the purposes of

 

 

Homeland Energy Solutions LLC

Letter of Intent

April 14, 2006

Page 11 of 14

	 	 	completing the Transaction any and all confidential information disclosed to it except that
Owner may disclose confidential information to its lenders, lenders’ agents, prospective
investors, advisors and/or consultants as may be reasonably necessary to enable them to advise
Owner on the Transaction, provided that any party to whom confidential information is
disclosed is informed of the existence of this confidentiality obligation and agree to be
obligated to keep such information confidential. The term “confidential information”
will mean (i) any and all information concerning the Transaction, including that Fagen and
Owner are negotiating the consummation of the Transaction, and (ii) all information which
Owner, directly or indirectly, may acquire from Fagen, but confidential information will not
include information falling into any of the following categories:

	 	(a)	 	information that, at the time of disclosure hereunder, is in the public domain;
	 
	 	(b)	 	information that, after disclosure hereunder, enters the public domain other
than by breach of this Agreement or the obligation of confidentiality;
	 
	 	(c)	 	information that, prior to disclosure hereunder, was already in the Owner’s
possession, either without limitation on disclosure to others or subsequently
becoming free of such limitation;
	 
	 	(d)	 	information obtained by the Owner from a third party having an independent
right to disclose this information; and
	 
	 	(e)	 	information that is available through discovery by independent research without
use of or access to the confidential information acquired from Fagen.

	 	 	Owner’s obligation to maintain confidential information in confidence will be deemed performed
if Owner observes with respect thereto the same safeguards and precautions which Owner observes
with respect to its own confidential information of the same or similar kind. It will not be
deemed to be a breach of the obligation to maintain confidential information in confidence if
confidential information is disclosed upon the order of a court or other authorized governmental
entity, or pursuant to other legal requirements. However, if Owner is required to file the
Transaction Documents or a portion thereof with a governmental entity, it agrees that it will
not do so without first informing Fagen of the requirement and seeking confidential treatment of
the Transaction Documents prior to filing the documents or a portion thereof. Owner’s
confidentiality obligations under this section shall survive the expiration or termination of
this Letter of Intent and shall be a legally binding obligation of Owner for five (5) years
following the later to occur of termination of this Letter of Intent or completion of the Plant
contemplated by the Transaction Documents.
	 
	6.	 	Publicity. Neither Owner nor any of its affiliates, shareholders, subcontractors, or vendors
or their officers, representatives, agents and employees will issue any press or publicity
release or otherwise release, distribute, announce, or disseminate any information for

 

 

Homeland Energy Solutions LLC

Letter of Intent

April 14, 2006

Page 12 of 14

	 	 	publication concerning the Transaction, the existence of the negotiations among Fagen and
Owner, the participation of Fagen in the Transaction, or any other matter affecting Fagen
hereunder, without the prior written consent of Fagen, which consent may be withheld for any
reason, except where such press or publicity release is required by order of a court or
necessary or appropriate under the rules or regulations of any governmental agency.
	 
	 	 	The Parties will jointly agree on the timing and content of any public disclosure by Owner,
including but not limited to, press releases, relating to Fagen’s involvement in Owner’s
project, and no such disclosure will be made without Fagen’s consent and approval, except as may
be required by applicable law.
	 
	7.	 	Disclaimer of Consequential Damages. In no event will either Fagen or Owner be liable to the
other pursuant to this Letter of Intent, or for activities conducted under this Letter of
Intent, under any theory of recovery for any indirect, special, incidental or consequential
damages (including, without limitation, loss of revenues or profits, loss of use, cost of
replacement, cost of capital and claims of customers, interest charges, or increased costs of
nature whatsoever).
	 
	8.	 	Legal Effect. Although this Letter of Intent does not contain all matters upon which
agreement must be reached in order for the Transaction to be consummated, Fagen and Owner wish
to set forth, prior to the execution of the Transaction Documents, their mutual agreement as
to the material terms and conditions of the Transaction. Each Party agrees to negotiate in
good faith towards entering into the written, definitive and legally binding Transaction
Documents containing, among other terms and conditions, those terms and conditions set forth
in this Letter of Intent including, without limitation, those terms set forth in Paragraphs 2
and 3 hereof. Notwithstanding the foregoing, the provisions of this Paragraph and of
Paragraphs 1, 4, 5, 6, 7, 10, 11, 13, 16 and 17 hereof are agreed to be legally binding
obligations of the Parties upon the execution and acceptance of this Letter of Intent.
	 
	9.	 	Negotiation of Definitive Agreements. The Transaction Documents will contain reasonable terms
and conditions regarding releases, payment obligations, cooperation as to tax planning and
structuring, other financial matters, legal opinions, confidentiality, limitations of
liability, assignment, breach, dispute resolution, events of default, remedies,
representations, warranties, indemnifications and other provisions customary for similar
transactions. Time is of the essence in the performance of this Letter of Intent in all
respects.
	 
	10.	 	Termination. This Letter of Intent will terminate on December 31, 2007 unless the basic size
and design of the Plant have been determined and mutually agreed upon, a specific site or
sites have been determined and mutually agreed upon, and at least 10% of the necessary equity
has been raised. This date may be extended upon mutual written agreement of the Parties.
Furthermore, unless otherwise agreed to by the Parties, this Letter of Intent will terminate:

 

 

Homeland Energy Solutions LLC

Letter of Intent

April 14, 2006

Page 13 of 14

	 	(a)	 	at the option of either Fagen or Owner if the Design-Build Agreement is not
completed and executed by the Closing Date; or
	 
	 	(b)	 	upon the execution and delivery of the Transaction Documents.

	11.	 	Governing Law. This Letter of Intent is governed by, and will be construed and interpreted in
accordance with the laws of the State of Minnesota, without regard to any conflicts of law or
choice of law rules.
	 
	12.	 	Expenses. Except as set forth in Paragraph 4(c) above, unless otherwise agreed by Fagen and
Owner, each Party will bear its own expenses in connection with the negotiation and execution
of definitive documentation for the transactions contemplated herein.
	 
	13.	 	Indemnification. Each Party will indemnify, defend and hold harmless the other Party and its
respective agents, servants, officers, directors, employees and affiliates from and against
any loss, cost, liability, claim, damage, expense (including reasonable attorneys’ and
consultants’ fees and disbursements), penalty or fine incurred in connection with any claim or
cause of action arising from or in connection with this Letter of Intent to the extent caused
by the
negligence, misrepresentation, fraud, fault or misconduct of the indemnifying Party.
	 
	14.	 	Assignability; Binding Effect; Benefit. This Letter of Intent will inure to the benefit of
and be binding upon the Parties and their respective successors and assigns. Nothing in this
Letter of Intent, either expressed or implied, is intended to confer on any person other than
the Parties and their respective successors and permitted assigns, any rights, remedies,
obligations or liabilities under or by reason of this Letter of Intent.
	 
	15.	 	Further Action. Each Party agrees to execute and deliver all further instruments, legal
opinions and documents, and take all further action not inconsistent with the provisions of
this Letter of Intent that may be reasonably necessary to complete performance of the Parties’
obligations hereunder and to effectuate the purposes and intent of this Letter of Intent.
	 
	16.	 	Amendments. The Parties agree that this Letter of Intent may be modified only by written
agreement by the Parties.
	 
	17.	 	Integration; Letter of Intent. This Letter of Intent represents the entire understanding
between the Parties in relation to the subject matter hereof, and supersedes any and all
previous agreements, arrangements or discussions between the Parties (whether written or oral)
in respect of the subject matter hereof, and specifically supersedes and replaces the Initial
Letter of Intent and Second Letter of Intent in all respects. No change, amendment or
modification of this Letter of Intent will be valid or binding upon the Parties unless such
change, amendment or modification will be in writing and duly executed by both Parties.

 

 

Homeland Energy Solutions LLC

Letter of Intent

April 14, 2006

Page 14 of 14

	18.	 	Counterparts. This Letter of Intent may be executed in one or more counterpart, each of
which when so executed and delivered will be deemed an original, but all of which taken
together constitute one and the same instrument. Signatures which have been affixed and
transmitted by facsimile or other electronic means will be binding to the same extent as an
original signature, although the Parties contemplate that a fully executed counterpart with
original signatures will be delivered to each Party.

               If the foregoing terms accurately reflect your understanding of our discussions and are
acceptable to you, please sign and return the enclosed counterpart of this Letter of Intent to the
undersigned.

	 	 	 	 	 
	 	Yours sincerely,

Fagen, Inc.

 	 
	 	         /s/ Ron Fagen
 	 
	 	By:            Ron Fagen 	 
	 	Title:  	President and CEO 	 
	 

	 	 	 
	Accepted and agreed to this 17th
	 	 
	day of April, 2006.
	 	 
	 
	 	 
	Homeland Energy Solutions LLC
	 	 
	 
	 	 
	     /s/ Stephen K. Eastman
 

By:

	 	 
	Title: Presidentexv10w1

 

 Exhibit 10.1

EXECUTION COPY

 

 

$630,000,000

364-DAY CREDIT AGREEMENT

dated as of

November 17, 2006

among

COUNTRYWIDE FINANCIAL CORPORATION,

COUNTRYWIDE HOME LOANS, INC.,

COUNTRYWIDE BANK, N.A.

BARCLAYS BANK PLC,

as Managing Administrative Agent,

BNP PARIBAS,

as Administrative Agent,

ROYAL BANK OF CANADA,

as Syndication Agent,

SOCIÉTÉ
GÉNÉRALE,

as Documentation Agent,

and

The Lenders Party Hereto

 

BARCLAYS CAPITAL and BNP PARIBAS SECURITIES CORP.,

as Joint Bookrunners and Joint Lead Arrangers

 

 

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	Definitions
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01. Defined Terms

	 	 	1	 
	SECTION 1.02. Classification of Loans and Borrowings

	 	 	16	 
	SECTION 1.03. Terms Generally

	 	 	16	 
	SECTION 1.04. Accounting Terms; GAAP

	 	 	16	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	The Credits
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01. Commitments; Increases in Revolving Facility

	 	 	16	 
	SECTION 2.02. Loans and Borrowings

	 	 	17	 
	SECTION 2.03. Requests for Revolving Borrowings

	 	 	18	 
	SECTION 2.04. Competitive Bid Procedure

	 	 	18	 
	SECTION 2.05. Swingline Loans

	 	 	20	 
	SECTION 2.06. Funding of Borrowings

	 	 	21	 
	SECTION 2.07. Interest Elections

	 	 	22	 
	SECTION 2.08. Termination and Reduction of Commitments

	 	 	23	 
	SECTION 2.09. Repayment of Loans; Evidence of Debt

	 	 	24	 
	SECTION 2.10. Prepayment of Loans

	 	 	25	 
	SECTION 2.11. Fees

	 	 	25	 
	SECTION 2.12. Interest

	 	 	26	 
	SECTION 2.13. Alternate Rate of Interest

	 	 	27	 
	SECTION 2.14. Increased Costs

	 	 	27	 
	SECTION 2.15. Break Funding Payments

	 	 	28	 
	SECTION 2.16. Taxes

	 	 	29	 
	SECTION 2.17. Payments Generally; Pro Rata Treatment; Sharing of Set-offs

	 	 	30	 
	SECTION 2.18. Mitigation Obligations; Replacement of Lenders

	 	 	31	 
	SECTION 2.19. Extension of Commitment Termination Date

	 	 	32	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	Representations and Warranties
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01. Organization; Powers

	 	 	33	 
	SECTION 3.02. Authorization; Enforceability

	 	 	33	 
	SECTION 3.03. Governmental Approvals; No Conflicts

	 	 	33	 
	SECTION 3.04. Financial Condition; No Material Adverse Change

	 	 	33	 
	SECTION 3.05. Properties

	 	 	34	 
	SECTION 3.06. Litigation and Environmental Matters

	 	 	34	 
	SECTION 3.07. Compliance with Laws and Agreements

	 	 	34	 

i

 

	 	 	 	 	 
	 	 	Page
	SECTION 3.08. Investment Company Status

	 	 	35	 
	SECTION 3.09. Taxes

	 	 	35	 
	SECTION
3.10. ERISA

	 	 	35	 
	SECTION 3.11. Disclosure

	 	 	35	 
	SECTION 3.12. Federal Regulations

	 	 	35	 
	SECTION 3.13. Subsidiaries

	 	 	35	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	Conditions
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01. Effective Date

	 	 	36	 
	SECTION 4.02. Each Credit Event

	 	 	37	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	Affirmative Covenants
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.01. Financial Statements; Ratings Change and Other Information

	 	 	37	 
	SECTION 5.02. Notices of Material Events

	 	 	40	 
	SECTION 5.03. Existence; Conduct of Business

	 	 	40	 
	SECTION 5.04. Payment of Obligations

	 	 	40	 
	SECTION 5.05. Maintenance of Properties; Insurance

	 	 	41	 
	SECTION 5.06. Hedging Program

	 	 	41	 
	SECTION 5.07. Books and Records; Inspection Rights

	 	 	41	 
	SECTION 5.08. Compliance with Laws and Contractual Obligations

	 	 	41	 
	SECTION 5.09. Environmental Laws

	 	 	41	 
	SECTION 5.10. Use of Proceeds

	 	 	41	 
	SECTION 5.11. Compliance with Regulatory Requirements

	 	 	42	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	Financial and Negative Covenants
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.01. Financial Condition Covenants

	 	 	42	 
	SECTION 6.02. Liens

	 	 	42	 
	SECTION 6.03. Fundamental Changes

	 	 	42	 
	SECTION 6.04. Acquisitions

	 	 	43	 
	SECTION 6.05. Restricted Payments

	 	 	43	 
	SECTION 6.06. Indebtedness

	 	 	43	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	 
	 	 	 	 
	Events of Default
	 	 	 	 
	 
	 	 	 	 

ii

 

	 	 	 	 	 
	 	 	Page
	ARTICLE VIII
	 	 	 	 
	 
	 	 	 	 
	Guarantee
	 	 	 	 
	 
	 	 	 	 
	SECTION 8.01. Guarantee

	 	 	46	 
	SECTION 8.02. No Subrogation

	 	 	47	 
	SECTION 8.03. Amendments, etc. with respect to the Borrower Obligations

	 	 	48	 
	SECTION 8.04. Guarantee Absolute and Unconditional

	 	 	48	 
	SECTION 8.05. Reinstatement

	 	 	49	 
	SECTION 8.06. Payments

	 	 	49	 
	SECTION 8.07. Independent Obligations

	 	 	49	 
	 
	 	 	 	 
	ARTICLE IX
	 	 	 	 
	 
	 	 	 	 
	The Agents
	 	 	 	 
	 
	 	 	 	 
	SECTION 9.01. Appointment

	 	 	49	 
	SECTION 9.02. Delegation of Duties

	 	 	49	 
	SECTION 9.03. Exculpatory Provisions

	 	 	50	 
	SECTION 9.04. Reliance by Managing Administrative Agent

	 	 	50	 
	SECTION 9.05. Notice of Default

	 	 	50	 
	SECTION 9.06. Non-Reliance on Agents and Other Lenders

	 	 	50	 
	SECTION 9.07. Indemnification

	 	 	51	 
	SECTION 9.08. Agent in Its Individual Capacity

	 	 	51	 
	SECTION 9.09. Successor Managing Administrative Agent

	 	 	51	 
	SECTION 9.10. Documentation Agent, Syndication Agent and Administrative Agent

	 	 	52	 
	 
	 	 	 	 
	ARTICLE X
	 	 	 	 
	 
	 	 	 	 
	Miscellaneous
	 	 	 	 
	 
	 	 	 	 
	SECTION 10.01. Notices

	 	 	52	 
	SECTION 10.02. Waivers; Amendments

	 	 	53	 
	SECTION 10.03. Expenses; Indemnity; Damage Waiver

	 	 	53	 
	SECTION 10.04. Successors and Assigns

	 	 	55	 
	SECTION 10.05. Survival

	 	 	57	 
	SECTION 10.06. Counterparts; Integration; Effectiveness

	 	 	57	 
	SECTION 10.07. Severability

	 	 	57	 
	SECTION 10.08. Right of Setoff

	 	 	57	 
	SECTION 10.09. Governing Law; Jurisdiction; Consent to Service of Process

	 	 	58	 
	SECTION 10.10. WAIVER OF JURY TRIAL

	 	 	58	 
	SECTION 10.11. Headings

	 	 	58	 
	SECTION 10.12. Confidentiality

	 	 	59	 
	SECTION 10.13. USA PATRIOT Act

	 	 	59	 

iii

 

SCHEDULES:

Schedule 2.01 — Commitments

Schedule 2.05 — Swingline Commitments

Schedule 3.06 — Disclosed Matters

Schedule 3.13 — Material Subsidiaries

Schedule 6.02 — Existing Liens

EXHIBITS:

Exhibit A — Form of Closing Certificate

Exhibit B — Form of Assignment and Assumption

Exhibit C — Form of Opinion of Borrower’s Counsel

Exhibit D — Form of New Lender Supplement

Exhibit E — Form of Increased Facility Activation Notice

iv

 

          364-DAY CREDIT AGREEMENT dated as of November 17, 2006, among COUNTRYWIDE FINANCIAL
CORPORATION, COUNTRYWIDE HOME LOANS, INC., COUNTRYWIDE BAK, N.A.,
SOCIÉTÉ GÉNÉRALE, as
Documentation Agent, ROYAL BANK OF CANADA, as Syndication Agent, the LENDERS party hereto, BNP
PARIBAS, as Administrative Agent, and BARCLAYS BANK PLC, as Managing Administrative Agent.

          WHEREAS, the Borrower has requested $630,000,000 in a senior unsecured revolving credit
facility from the Lenders for general corporate purposes; and

          WHEREAS, the Lenders are willing to provide the requested senior unsecured revolving credit
facility on the terms and conditions set forth herein;

          NOW, THEREFORE, the parties hereto hereby agree as follows:

ARTICLE I

Definitions

          SECTION 1.01. Defined Terms. As used in this Agreement, the following terms have the meanings specified below:

          “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to
(a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

          “Administrative Agent” means BNP Paribas, in its capacity as administrative agent for
the Lenders hereunder.

          “Administrative Questionnaire” means an Administrative Questionnaire in a form
supplied by the Managing Administrative Agent.

          “Affiliate” means, with respect to a specified 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.

          “Agents” means the Documentation Agent, the Syndication Agent, the Administrative
Agent and the Managing Administrative Agent.

          “Aggregate Available Commitment” means, at any time, the excess, if any of (a) the
Aggregate Commitment over (b) the aggregate principal amount of all Loans then outstanding.

          “Aggregate Commitment” means the aggregate amount of the Lenders’ Commitments.

          “Aggregate Deficit Amount” means, for any Person, at any time, the excess of (i) the
aggregate amount of payment obligations for which such Person is then liable under its Hedge and
Repo Transactions with one or more counterparties over (ii) the then aggregate value of the
collateral then securing all such payment obligations.

          “Aggregate Exposure” means, with respect to any Lender at any time, the amount of such
Lender’s Commitment then in effect or, if the Commitments have been terminated, the amount of such
Lender’s Credit Exposure then outstanding.

 

 

          “Aggregate Exposure Percentage” means, with respect to any Lender at any time, the
ratio (expressed as a percentage) of such Lender’s Aggregate Exposure at such time to the Aggregate
Exposure of all Lenders at such time.

          “Agreement” means this 364-Day Credit Agreement, as amended, supplemented or otherwise
modified from time to time.

          “Alternate Base Rate” means, for any day, a rate per annum equal to the greater of (a)
the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day
plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the
Federal Funds Effective Rate shall be effective from and including the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively.

          “Alternate Base Rate Loans” means Revolving Loans the rate of interest applicable to
which is based upon the Alternate Base Rate.

          “Applicable Percentage” means, with respect to any Lender, the percentage of the total
Commitments represented by such Lender’s Commitment. If the Commitments have terminated or
expired, the Applicable Percentages shall be determined based upon the Commitments most recently in
effect, giving effect to any assignments.

          “Applicable Rate” means, for any day, with respect to any Federal Funds Rate Loan or
Eurodollar Revolving Loan, or with respect to the facility fees and utilization fees payable
hereunder, as the case may be, the applicable rate per annum set forth below (expressed in basis
points) under the caption “Federal Funds Rate Spread”, “Eurodollar Spread”, “Facility Fee Rate” or
“Utilization Fee Rate”, as the case may be, based upon the ratings by Moody’s and S&P,
respectively, applicable on such date to the Index Debt ratings for the relevant Borrower (with the
Facility Fee Rate as applicable to the unused Commitments being determined by reference to the
Index Debt ratings of CFC):

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Utilization
	 	 	Federal Funds	 	 	 	 	 	 	 	 	 	Fee Rate
	Index Debt Ratings	 	Rate Spread	 	Eurodollar Spread	 	Facility Fee Rate	 	(>50%)
	3 A1 from Moody’s
or 3 A+ from S&P
	 	 	20.0	 	 	 	20.0	 	 	 	5.0	 	 	 	5.0	 
	A2 from Moody’s
or A from S&P
	 	 	24.0	 	 	 	24.0	 	 	 	6.0	 	 	 	5.0	 
	A3 from Moody’s
or A- from S&P
	 	 	28.0	 	 	 	28.0	 	 	 	7.0	 	 	 	5.0	 
	Baa1 from Moody’s
or BBB+ from S&P
	 	 	36.0	 	 	 	36.0	 	 	 	9.0	 	 	 	10.0	 
	Baa2 from Moody’s
or BBB from S&P
	 	 	47.5	 	 	 	47.5	 	 	 	12.5	 	 	 	10.0	 
	< Baa2 from Moody’s
and < BBB from S&P
or unrated
	 	 	60.0	 	 	 	60.0	 	 	 	15.0	 	 	 	10.0	 

For purposes of the foregoing, (i) if either Moody’s or S&P shall not have in effect a rating for
the Index Debt (other than by reason of the circumstances referred to in clause (iii) of this
definition), then the rating assigned by the other rating agency shall be used; (ii) if the ratings
established or deemed to have been established by Moody’s and S&P for the Index Debt shall fall
within different rating levels, the

2

 

Applicable Rate shall be based on the higher of the two ratings
unless one of the two ratings is two or more rating levels lower than the other, in which case the
Applicable Rate shall be determined by reference to the rating level next below that of the higher
of the two ratings; (iii) if either Moody’s or S&P shall cease to assign a rating to the Index Debt
solely because CFC elects not to participate or otherwise cooperate in the ratings process of such
rating agency, the Applicable Rate shall not be less than that in effect immediately prior to such
rating agency’s rating becoming unavailable; (iv) if the ratings established or deemed to have been
established by Moody’s and S&P for the Index Debt shall be changed (other than as a result of a
change in the rating system of Moody’s or S&P), such change shall be effective as of the date on
which it is first announced by the applicable rating agency, irrespective of when notice of such
change shall have been furnished by CFC to the Managing Administrative Agent and the Lenders
pursuant to Section 5.02 or otherwise; and (v) the Eurodollar Spread for each Ratings Level above
shall be increased by 0.125% if the Term-Out Maturity Date has been selected for the period after
the Commitment Termination Date. Each change in the Applicable Rate shall apply during the period
commencing on the effective date of such change and ending on the date immediately preceding the
effective date of the next such change. If the rating system of Moody’s or S&P shall change, or if
either such rating agency shall cease to be in the business of rating corporate debt obligations,
the Borrowers and the Lenders shall negotiate in good faith to amend this definition to reflect
such changed rating system or the unavailability of ratings from such rating agency and, pending
the effectiveness of any such amendment, the Applicable Rate shall be determined by reference to
the rating most recently in effect prior to such change or cessation.

          “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section 10.04),
and accepted by the Managing Administrative Agent, in the form of Exhibit B or any other form
approved by the Managing Administrative Agent.

          “Availability Period” means the period from and including the Effective Date to but
excluding the earlier of the Commitment Termination Date and the date the Commitments are
terminated as provided herein.

          “Board” means the Board of Governors of the Federal Reserve System of the United
States of America.

          “Borrower” means CFC, CHL or CB, as appropriate.

          “Borrowing” means (a) Revolving Loans of the same Type, made, converted or continued
on the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in
effect, (b) a Competitive Loan or group of Competitive Loans of the same Type made on the same date
and as to which a single Interest Period is in effect or (c) a Swingline Loan.

          “Borrowing Request” means a request by a Borrower for a Revolving Borrowing in
accordance with Section 2.03.

          “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed;
provided that, when used in connection with a Eurodollar Loan, the term “Business
Day” shall also exclude any day on which banks are not open for dealings in Dollar deposits in
the London interbank market.

          “Capital Lease Obligations” of any Person means the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as

3

 

capital leases on a balance sheet of such Person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

          “CB” means Countrywide Bank, N.A., a national banking association.

          “CFC” means Countrywide Financial Corporation, a Delaware corporation.

          “Change in Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender (or, for purposes of Section 2.14(b), by any lending office of such Lender
or by such Lender’s holding company, if any) with any request, guideline or directive (whether or
not having the force of law) of any Governmental Authority made or issued after the date of this
Agreement.

          “Change of Control” means, at any time, (i) any “person” or “group” (as such terms are
used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) becomes, or obtain rights (whether by means or warrants, options or otherwise) to become,
the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act), directly
or indirectly, of more than 35% of the outstanding voting stock of CFC or (ii) the board of
directors of CFC shall cease to consist of a majority of Continuing Directors.

          “CHL” means Countrywide Home Loans, Inc., a New York corporation.

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

          “Code” means the Internal Revenue Code of 1986, as amended from time to time.

          “Commitment” means, with respect to each Lender, the commitment of such Lender to make
Revolving Loans and to acquire participations in Swingline Loans hereunder, as such commitment may
be (a) reduced from time to time pursuant to Section 2.08 and (b) reduced or increased from time to
time pursuant to assignments by or to such Lender pursuant to Section 10.04. The initial amount of
each Lender’s Commitment is set forth on Schedule 2.01, or in the Assignment and Assumption
pursuant to which such Lender shall have assumed its Commitment, as applicable. The initial
aggregate amount of the Lenders’ Commitments is $630,000,000.

          “Commitment Termination Date” means November 16, 2007.

          “Competitive Bid” means an offer by a Lender to make a Competitive Loan in accordance
with Section 2.04.

          “Competitive Bid Rate” means, with respect to any Competitive Bid, the Margin or the
Fixed Rate, as applicable, offered by the Lender making such Competitive Bid.

          “Competitive Bid Request” means a request by a Borrower for Competitive Bids in
accordance with Section 2.04.

          “Competitive Loan” means a Loan made pursuant to Section 2.04.

4

 

          “Consolidated Net Worth” means, at any date, all amounts that would, in conformity
with GAAP, be included on a consolidated balance sheet of a Person and its subsidiaries under
stockholders’ equity at such date.

          “Continuing Directors” means the directors of CFC on the date hereof and each other
director, if, in each case, such other director’s nomination for election to the board of directors
of CFC is recommended by at least 51% of the then Continuing Directors.

          “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” 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.

          “Credit Exposure” means, with respect to any Lender at any time, the sum of the
outstanding principal amount of such Lender’s Revolving Loans (including Loans for which the
Term-Out Maturity Date has been selected) and its Swingline Exposure at such time.

          “Default” means any event or condition which constitutes an Event of Default or which
upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

          “Disclosed Matters” means the actions, suits and proceedings and the environmental
matters disclosed in Schedule 3.06.

          “Dollars” or “$” refers to lawful money of the United States of America.

          “Effective Date” means the date on which the conditions specified in Section 4.01 are
satisfied (or waived in accordance with Section 10.02), which date is November 17, 2006.

          “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
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 a
Borrower or any Subsidiary 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.

          “Equity Interests” means shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity ownership
interests in a Person, and any warrants, options or other rights entitling the holder thereof to
purchase or acquire any such equity interest.

5

 

          “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 CFC, 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); (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 a
Borrower 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 CFC 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 CFC or any of its ERISA Affiliates of any
liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan;
or (g) the receipt by CFC or any ERISA Affiliate of any notice, or the receipt by any Multiemployer
Plan from CFC or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal
Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in
reorganization, within the meaning of Title IV of ERISA.

          “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate (or, in the case of a Competitive Loan, the LIBO Rate).

          “Eurodollar Tranche” is the collective reference to Eurodollar Loans the then current
Interest Periods with respect to all of which begin on the same date and end on the same later date
(whether or not such Loans shall originally have been made on the same day).

          “Event of Default” has the meaning assigned to such term in Article VII.

          “Excluded Taxes” means, with respect to the Managing Administrative Agent, the
Administrative Agent, any Lender or any other recipient of any payment to be made by or on account
of any obligation of a Borrower hereunder, (a) income or franchise taxes imposed on (or measured
by) its net income by the United States of America, or by the jurisdiction under the laws of which
such recipient is organized or in which its principal office is located or, in the case of any
Lender, in which its applicable lending office is located, (b) any branch profits taxes imposed by
the United States of America or any similar tax imposed by any other jurisdiction in which such
Borrower is located and (c) in the case of a Foreign Lender (other than an assignee pursuant to a
request under Section 2.18(b)), any withholding tax that 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) or is attributable to such Foreign Lender’s failure to comply with Section
2.16(e), 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 2.16(a).

          “Existing Credit Agreement” means the 364-Day Credit Agreement, dated as of May 12,
2004, among CFC, CHL, Royal Bank of Canada, as managing administrative agent, Barclays Bank PLC, as
administrative agent, BNP Paribas, as syndication agent, Lloyds TSB Bank PLC and Société Générale,
as documentation agents, and certain lenders named therein, as amended, supplemented or otherwise

6

 

modified from time to time (including, but not limited to, the Termination and Replacement
Agreement dated as of November 19, 2004, the First Amendment dated as of May 11, 2005, the Second
Amendment dated as of November 18, 2005 and the Third Amendment dated as of May 10, 2006).

          “Extending Lender” has the meaning assigned to such term in Section 2.19.

          “Extension Notice” has the meaning assigned to such term in Section 2.19.

          “Federal Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received
by the Managing Administrative Agent from three Federal funds brokers of recognized standing
selected by it.

          “Federal Funds Rate” means (i) for the first day of a Federal Funds Rate Loan, the
rate per annum which is the average of the rates on the offered side of the Federal Funds market
quoted by three interbank Federal Funds brokers, selected by the Managing Administrative Agent, at
approximately the time the Borrower requests such Loan, and (ii) for each day of such Federal Funds
Rate Loan thereafter, the rate per annum which is the average of the rates on the offered side of
the Federal Funds market quoted by three interbank Federal Funds brokers, selected by the Managing
Administrative Agent, at approximately 3:00 p.m., New York City time, on such day for Dollar
deposits in immediately available funds.

          “Federal Funds Rate Loan” means Revolving Loans whose applicable rate of interest is
based upon the Federal Funds Rate and which are designated as Federal Funds Rate Loans pursuant to
Section 2.03 or 2.07.

          “Financial Officer” means, as to a Borrower, the chief financial officer, principal
accounting officer, treasurer or controller of such Borrower.

          “Five-Year Credit Agreement” means the Five-Year Credit Agreement, dated as of the
date hereof, among CFC, CHL, CB, Barclays Bank PLC, as managing administrative agent, BNP Paribas,
as administrative agent, Royal Bank of Canada, as syndication agent, Société Générale, as
documentation agent, and the lenders party thereto, as amended, supplemented or otherwise modified
from time to time.

          “Fixed Rate” means, with respect to any Competitive Loan (other than a Eurodollar
Competitive Loan), the fixed rate of interest per annum specified by the Lender making or proposing
to make such Competitive Loan in its related Competitive Bid.

          “Fixed Rate Loan” means a Competitive Loan bearing interest at a Fixed Rate.

          “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than the United States of America, any State thereof or the District of Columbia.

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

          “Governmental Authority” means the government of the United States of America, any
other nation or any political subdivision thereof, whether state or local, and any agency,
authority,

7

 

instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government.

          “Guarantee” of or by any Person (the “guarantor”) means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase
or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds
for the purchase of) any security for the payment thereof, (b) to purchase or lease property,
securities or services for the purpose of assuring the owner of such Indebtedness or other
obligation of the payment thereof, (c) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any
letter of credit or letter of guaranty issued to support such Indebtedness or obligation;
provided, that the term Guarantee shall not include endorsements for collection or deposit
in the ordinary course of business.

          “Guarantee Obligation” means, as to any Person (the “guaranteeing person”),
any obligation, including a reimbursement, counterindemnity or similar obligation, of the
guaranteeing person that guarantees or in effect guarantees, or which is given to induce the
creation of a separate obligation by another Person (including any bank under any letter of credit)
that guarantees or in effect guarantees, any Indebtedness, leases, dividends or other obligations
(the “primary obligations”) of any other third Person (the “primary obligor”) in
any manner, whether directly or indirectly, including any obligation of the guaranteeing person,
whether or not contingent, (i) to purchase any such primary obligation or any property constituting
direct or indirect security therefor, (ii) to advance or supply funds (1) for the purchase or
payment of any such primary obligation or (2) to maintain working capital or equity capital of the
primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to
purchase property, securities or services primarily for the purpose of assuring the owner of any
such primary obligation of the ability of the primary obligor to make payment of such primary
obligation or (iv) otherwise to assure or hold harmless the owner of any such primary obligation
against loss in respect thereof; provided, however, that the term Guarantee
Obligation shall not include endorsements of instruments for deposit or collection in the ordinary
course of business. The amount of any Guarantee Obligation of any guaranteeing person shall be
deemed to be the lower of (a) an amount equal to the stated or determinable amount of the primary
obligation in respect of which such Guarantee Obligation is made and (b) the maximum amount for
which such guaranteeing person may be liable pursuant to the terms of the instrument embodying such
Guarantee Obligation, unless such primary obligation and the maximum amount for which such
guaranteeing person may be liable are not stated or determinable, in which case the amount of such
Guarantee Obligation shall be such guaranteeing person’s maximum reasonably anticipated liability
in respect thereof as determined by the applicable Borrower in good faith.

          “Guaranteed Borrower” has the meaning assigned to such term in Section 8.01.

          “Guarantor” has the meaning assigned to such term in Section 8.01.

          “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.

          “Hedge and Repo Transaction” means a transaction consisting of or arising under one or
more of the following: (a) swaps, options, caps, collars, floors and swaptions, including, without
limitation, rate swaps, basis swaps, commodity swaps, equity or equity index swaps, interest rate
options,

8

 

foreign exchange transactions, forward rate agreements, rate guarantee agreements, currency
swaps, credit default swaps, total rate of return swaps, spread options, and contracts for
differences (including any options with respect to any of the transactions referred to in this
clause (a)); (b) repurchase agreements, reverse purchase agreements, sell buy backs and buy sell
back agreements (each of the foregoing including in respect of mortgage loans), securities lending
and borrowing agreements, other agreements for the purchase, sale or loan of securities, group or
index securities (including any interest therein or based on the value thereof), certificates of
deposit or bankers’ acceptances (including any option with respect to any of the transactions
referred to in this clause (b)); (c) options of any type, whether with respect to fixed-income
securities or interest rates, and whether included on a national securities exchange, privately
negotiated or otherwise relating to guaranties of settlements of cash or securities by or to
securities clearing agencies; (d) prepaid equity forwards and commodity options or forwards; (e)
any other transactions similar to those referred to in clause (a), (b), (c) or (d) above entered
into in the ordinary course of business of CFC or any subsidiary or to the extent entered into
solely by two or more of CFC and its subsidiaries; (f) any combination of two or more transactions
referred to in clause (a), (b), (c), (d) or (e) above; and (g) any agreement or master agreement
(including the supplements thereto and confirmations thereunder and the terms and conditions
incorporated by reference in any and all of the foregoing) for transactions referred to in clause
(a), (b), (c), (d) or (e) above.

          “Hedging Program” means a program for hedging interest rate risks by CFC and its
subsidiaries, which program shall include, without limitation, Hedge and Repo Transactions.

          “Increased Facility Activation Date” means any Business Day on which any Lender shall
execute and deliver to the Managing Administrative Agent an Increased Facility Activation Notice
pursuant to Section 2.01(b).

          “Increased Facility Activation Notice” means a notice substantially in the form of
Exhibit E.

          “Increased Facility Closing Date” means any Business Day designated as such in an
Increased Facility Activation Notice.

          “Indebtedness” of any Person means, without duplication, (a) all obligations of such
Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations
of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of
such Person upon which interest charges are customarily paid, (d) all obligations of such Person
under conditional sale or other title retention agreements relating to property acquired by such
Person, (e) all obligations of such Person in respect of the deferred purchase price of property or
services (excluding current accounts payable incurred in the ordinary course of business), (f) all
Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such
Person, whether or not the Indebtedness secured thereby has been assumed, (g) all Guarantees by
such Person of Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i) all
obligations, contingent or otherwise, of such Person as an account party in respect of letters of
credit and letters of guaranty and (j) all obligations, contingent or otherwise, of such Person in
respect of bankers’ acceptances. The Indebtedness of any Person shall include the Indebtedness of
any other entity (including any partnership in which such Person is a general partner) to the
extent such Person is liable therefor as a result of such Person’s ownership interest in or other
relationship with such entity, except to the extent the terms of such Indebtedness provide that
such Person is not liable therefor. “Indebtedness” shall not include obligations under customary
indemnification provisions in agreements relating to the sale or purchase of assets or property.

          “Indemnified Taxes” means Taxes other than Excluded Taxes.

9

 

          “Index Debt” means senior, unsecured, long-term indebtedness for borrowed money of the
relevant Borrower that is not guaranteed by any Person (other than, in the case of the Index Debt
of CFC or CHL, CFC or CHL, as applicable) or subject to any other credit enhancement.

          “Information Memorandum” means the confidential information memorandum dated October
2006 relating to the Borrowers and the Transactions.

          “Interest Election Request” means a request by a Borrower to convert or continue a
Revolving Borrowing in accordance with Section 2.07.

          “Interest Payment Date” means (a) with respect to any Federal Funds Rate Loan or
Alternate Base Rate Loan (other than a Swingline Loan), the last day of each calendar month, (b)
with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest
Period of more than one month’s duration, each day prior to the last day of such Interest Period
that occurs at intervals of one month’s duration after the first day of such Interest Period, (c)
with respect to any Fixed Rate Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the case of a Fixed Rate Borrowing with an Interest
Period of more than 90 days’ duration (unless otherwise specified in the applicable Competitive Bid
Request), each day prior to the last day of such Interest Period that occurs at intervals of 90
days’ duration after the first day of such Interest Period, and any other dates that are specified
in the applicable Competitive Bid Request as Interest Payment Dates with respect to such Borrowing
and (d) with respect to any Swingline Loan, the day that such Loan is required to be repaid.

          “Interest Period” means (a) with respect to any Eurodollar Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically corresponding day in the
calendar month that is one, two, three or six months thereafter, as the applicable Borrower may
elect, and (b) with respect to any Fixed Rate Borrowing, the period (which shall not be less than
seven days or more than 180 days) commencing on the date of such Borrowing and ending on the date
specified in the applicable Competitive Bid Request; provided, that (i) if any Interest
Period would end on a day other than a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless, in the case of a Eurodollar Borrowing only, such next
succeeding Business Day would fall in the next calendar month, in which case such Interest Period
shall end on the next preceding Business Day, (ii) any Interest Period pertaining to a Eurodollar
Borrowing that commences on the last Business Day of a calendar month (or on a day for which there
is no numerically corresponding day in the last calendar month of such Interest Period) shall end
on the last Business Day of the last calendar month of such Interest Period and (iii) any Interest
Period that would otherwise end after the Commitment Termination Date (or, in the case of Revolving
Loans, if applicable, the Term-Out Maturity Date) shall end on the Commitment Termination Date or
the Term-Out Maturity Date, as the case may be. For purposes hereof, the date of a Borrowing
initially shall be the date on which such Borrowing is made and, in the case of a Revolving
Borrowing, thereafter shall be the effective date of the most recent conversion or continuation of
such Borrowing.

          “JPM 364-Day Credit Agreement” means the 364-Day Credit Agreement, dated as of May 10,
2006, among CFC, CHL, JPMorgan Chase Bank, N.A., as managing administrative agent, Bank of America,
N.A., as administrative agent, ABN AMRO Bank N.V., as syndication agent, Citibank, N.A. and
Deutsche Bank AG New York Branch, as documentation agents, and the lenders party thereto, as
amended, supplemented or otherwise modified from time to time.

          “JPM Credit Agreements” means the JPM 364-Day Credit Agreement and the JPM Five-Year
Credit Agreement.

10

 

          “JPM Five-Year Credit Agreement” means the Five-Year Credit Agreement, dated as of May
10, 2006, among CFC, CHL, JPMorgan Chase Bank, N.A., as managing administrative agent, Bank of
America, N.A., as administrative agent, ABN AMRO Bank N.V., as syndication agent, Citibank, N.A.
and Deutsche Bank AG New York Branch, as documentation agents, and the lenders party thereto, as
amended, supplemented or otherwise modified from time to time.

          “Lenders” means the Persons listed on Schedule 2.01 and any other Person that shall
have become a party hereto pursuant to an Assignment and Assumption or New Lender Supplement, other
than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.
Unless the context otherwise requires, the term “Lenders” includes the Swingline Lenders.

          “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period,
the rate appearing on Page 3750 of the Telerate Market Service (or on any successor or substitute
page of such Service, or any successor to or substitute for such Service, providing rate quotations
comparable to those currently provided on such page of such Service, as determined by the Managing
Administrative Agent from time to time for purposes of providing quotations of interest rates
applicable to Dollar deposits in the London interbank market) at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period, as the rate for Dollar
deposits with a maturity comparable to such Interest Period. In the event that such rate is not
available at such time for any reason, then the “LIBO Rate” with respect to such Eurodollar
Borrowing for such Interest Period shall be the rate at which Dollar deposits of $5,000,000 and for
a maturity comparable to such Interest Period are offered by the principal London office of the
Managing Administrative Agent in immediately available funds in the London interbank market at
approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest
Period.

          “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien,
pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the
interest of a vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially the same economic effect as any of
the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call
or similar right of a third party with respect to such securities.

          “Loan Documents” means this Agreement and the Notes, if any.

          “Loans” means the loans made by the Lenders to the Borrowers pursuant to this
Agreement.

          “Managing Administrative Agent” means Barclays Bank PLC, in its capacity as managing
administrative agent.

          “Margin” means, with respect to any Competitive Loan bearing interest at a rate based
on the LIBO Rate, the marginal rate of interest, if any, to be added to or subtracted from the LIBO
Rate to determine the rate of interest applicable to such Loan, as specified by the Lender making
such Loan in its related Competitive Bid.

          “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
operations, or condition, financial or otherwise, of CFC, CHL and their Subsidiaries taken as a
whole or, as the case may be, of CB and its Subsidiaries taken as a whole, or (b) the validity or
enforceability of this Agreement or any other Loan Document or the rights or remedies of the
Managing Administrative Agent or the Lenders hereunder or thereunder.

11

 

          “Material Indebtedness” means (i) Indebtedness outstanding hereunder or under the
Five-Year Credit Agreement, (ii) Indebtedness outstanding under either JPM Credit Agreement and
(iii) any other Indebtedness (other than the Loans), or obligations in respect of one or more Hedge
and Repo Transactions, of any one or more of the Borrower and its Subsidiaries in an aggregate
principal amount exceeding $100,000,000.

          “Material Subsidiary” means, at any time, as to CFC or CB, each of its Subsidiaries
which (i) is set forth in Schedule 3.13 under the heading “Permanent Material Subsidiaries”, (ii)
individually had revenue in the then most recently ended fiscal year of CFC comprising 5% or more
of the consolidated revenue of CFC and its Subsidiaries for such fiscal year or (iii) is designated
a Material Subsidiary by CFC or CB, as the case may be, in Schedule 3.13 under the heading
“Designated Material Subsidiaries” (as such list of Designated Material Subsidiaries may be
supplemented or modified from time to time after the Effective Date upon written notice to the
Managing Administrative Agent and the Lenders). In no event shall the aggregate revenue of
Subsidiaries of CFC or CB, as the case may be, which are not deemed or designated Material
Subsidiaries in accordance with the preceding sentence for the then most recently ended fiscal year
equal or exceed 20% of the consolidated revenue of CFC and its Subsidiaries for such fiscal year.

          “Moody’s” means Moody’s Investors Service, Inc.

          “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.

          “New Lender” has the meaning set forth in Section 2.01(b).

          “New Lender Supplement” has the meaning set forth in Section 2.01(b).

          “Non-Extending Lender” has the meaning assigned to such term in Section 2.19.

          “Notes”: the collective reference to any promissory note evidencing Loans.

          “Obligations” means, as to any Borrower, the unpaid principal of and interest on
(including interest accruing after the maturity of the Loans and interest accruing after the filing
of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding, relating to such Borrower, whether or not a claim for post-filing or post-petition
interest is allowed in such proceeding) the Loans of such Borrower and all other obligations and
liabilities of such Borrower to the Agents or to any Lender, whether direct or indirect, absolute
or contingent, due or to become due, or now existing or hereafter incurred, which may arise under,
out of, or in connection with, this Agreement, any other Loan Document or any other document made,
delivered or given in connection herewith or therewith, whether on account of principal, interest,
fees, indemnities, costs, expenses (including all fees, charges and disbursements of counsel to the
Agents or to any Lender that are required to be paid by such Borrower pursuant hereto) or
otherwise.

          “OCC” means the Office of the Comptroller of the Currency of the United States of
America or any successor federal bank regulatory authority.

          “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.

12

 

          “OTS” means the Office of Thrift Supervision or any successor federal regulator of
federally chartered and state-chartered savings associations, their subsidiaries, and their
registered savings and loan holding companies.

          “Participant” has the meaning set forth in Section 10.04.

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

          “Permitted Encumbrances” means:

     (a) Liens imposed by law for taxes that are not yet due or are being contested in
compliance with Section 5.04;

     (b) 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
5.04;

     (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) judgment liens in respect of judgments that do not constitute an Event of Default
under clause (k) of Article VII; provided that such liens shall not secure any
judgments of more than $100,000,000 in the aggregate for more than 60 days;

     (f) 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 a Borrower or any Subsidiary thereof;

     (g) any Lien on any property or asset of a Borrower or any Subsidiary thereof existing
on the date hereof and set forth in Schedule 6.03; provided that (i) such Lien shall
not apply to any other property or asset of such Borrower or any Subsidiary thereof and (ii)
such Lien shall secure only those obligations which it secures on the date hereof and
extensions, renewals and replacements thereof that do not increase the outstanding principal
amount thereof;

     (h) any Lien existing on any property or asset prior to the acquisition thereof by a
Borrower or any Subsidiary thereof or existing on any property or asset of any Person that
becomes a Subsidiary after the date hereof prior to the time such Person becomes a
Subsidiary; provided that (i) such Lien is not created in contemplation of or in
connection with such acquisition or such Person becoming a Subsidiary, as the case may be,
(ii) such Lien shall not apply to any other property or assets of such Borrower or any
Subsidiary thereof and (iii) such Lien shall secure only those obligations which it secures
on the date of such acquisition or the date such Person becomes a Subsidiary, as the case
may be and extensions, renewals and replacements thereof that do not increase the
outstanding principal amount thereof; and

13

 

     (i) Liens on fixed or capital assets acquired, constructed or improved by a Borrower or
any Subsidiary thereof, provided that (i) such security interests and the Indebtedness
secured thereby are incurred prior to or within 90 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 fixed or capital assets and
(iii) such security interests shall not apply to any other property or assets of such
Borrower or any Subsidiary thereof.

          “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 a Borrower 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.

          “Prime Rate” means the rate of interest per annum publicly announced from time to time
by Barclays Bank PLC as its prime rate in effect at its principal office in New York City; each
change in the Prime Rate shall be effective from and including the date such change is publicly
announced as being effective.

          “Register” has the meaning set forth in Section 10.04.

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

          “Required Lenders” means, at any time, Lenders having Credit Exposures and unused
Commitments representing more than 50% of the sum of the total Credit Exposures and unused
Commitments at such time; provided that, for purposes of declaring the Loans to be due and
payable pursuant to Article VII, and for all purposes after the Loans become due and payable
pursuant to Article VII and/or the Commitments expire or terminate, the outstanding Competitive
Loans of the Lenders shall be included in their respective Credit Exposures in determining the
Required Lenders.

          “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests in a Borrower or any Subsidiary
thereof, or any payment (whether in cash, securities or other property), including any sinking fund
or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation
or termination of any such Equity Interests in such Borrower or any option, warrant or other right
to acquire any such Equity Interests in such Borrower.

          “Revolving Loan” means a Loan made pursuant to Section 2.03.

          “S&P” means Standard & Poor’s.

          “SEC” means the Securities and Exchange Commissions, any successor thereto and any
analogous Governmental Authority.

          “Specified MSR Liens” means (i) Liens on mortgage servicing rights securing secured
lines of credit for, warehouse financings of, or repurchase transactions involving, the whole
mortgage loans to which such mortgage servicing rights relate and (ii) Liens on mortgage servicing
rights following sales or securitizations of the mortgage loans to which such mortgage servicing
rights relate where such

14

 

Liens are intended to benefit the investors in the event such sales or securitizations are not
“true sale” transactions.

          “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or supplemental reserves)
expressed as a decimal established by the Board to which the Managing Administrative Agent is
subject with respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred to as
“Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall include
those imposed pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute
eurocurrency funding and to be subject to such reserve requirements without benefit of or credit
for proration, exemptions or offsets that may be available from time to time to any Lender under
such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in any such reserve percentage.

          “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, as
well as any other corporation, limited liability company, partnership, association or other entity
(a) of which securities or other ownership interests representing more than 50% of the equity or
more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the
general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as
of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by
the parent and one or more subsidiaries of the parent. Unless the context requires otherwise,
“Subsidiary” shall refer to any subsidiary of CFC (including any subsidiary of CFC that is
also a subsidiary of CB).

          “Swingline Commitment” means, with respect to each Swingline Lender, the commitment of
such Swingline Lender to make Swingline Loans. The initial amount of each Swingline Lender’s
Swingline Commitment is set forth in Schedule 2.05.

          “Swingline Exposure” means, at any time, the aggregate principal amount of all
Swingline Loans outstanding at such time. The Swingline Exposure of any Lender at any time shall
be its Applicable Percentage of the total Swingline Exposure at such time.

          “Swingline Lender” means each Lender having a Swingline Commitment set forth in
Schedule 2.05 (as such Schedule may be amended and supplemented from time to time upon the consent
of the Borrowers and the applicable Lender and notice to the Managing Administrative Agent), in its
capacity as a lender of Swingline Loans hereunder.

          “Swingline Loan” means a Loan made pursuant to Section 2.05.

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

          “Term-Out Maturity Date” means, if so selected by a Borrower pursuant to Section
2.09(a), November 16, 2008.

          “Transactions” means the execution, delivery and performance by CFC, CHL and CB of
this Agreement and the other Loan Documents, the borrowing of Loans and the use of the proceeds
thereof by CFC, CHL and CB.

15

 

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

          “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.

          SECTION 1.02. Classification of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and referred to by Class
(e.g., a “Revolving Loan”) or by Type (e.g., a “Eurodollar Loan”) or by Class and
Type (e.g., a “Eurodollar Revolving Loan”). Borrowings also may be classified and referred
to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar
Borrowing”) or by Class and Type (e.g., a “Eurodollar Revolving Borrowing”).

          SECTION 1.03. Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the
terms defined. Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be
deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to
have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a)
any definition of or reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from time to time
amended, supplemented or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein), (b) any reference herein to any Person shall be
construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof” and
“hereunder”, and words of similar import, shall be construed to refer to this Agreement in its
entirety and not to any particular provision hereof, (d) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and
Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract rights.

          SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly provided herein, all terms of an accounting or financial
nature shall be construed in accordance with GAAP, as in effect from time to time; provided
that, if CFC notifies the Managing Administrative Agent that a Borrower requests an amendment to
any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP
or in the application thereof on the operation of such provision (or if the Managing Administrative
Agent notifies CFC that the Required Lenders request an amendment to any provision hereof for such
purpose), regardless of whether any such notice is given before or after such change in GAAP or in
the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect
and applied immediately before such change shall have become effective until such notice shall
have been withdrawn or such provision amended in accordance herewith.

ARTICLE II

The Credits

          SECTION 2.01. Commitments; Increases in Revolving Facility. (a) Subject to the terms and conditions set forth herein, each Lender agrees to make
Revolving Loans to the Borrowers from time to time during the Availability Period in an aggregate
principal amount that will not result in (i) such Lender’s Credit Exposure exceeding such Lender’s
Commitment or (ii) the sum of the total Credit Exposures plus the aggregate principal amount of
outstanding Competitive Loans exceeding the total

16

 

Commitments. Within the foregoing limits and
subject to the terms and conditions set forth herein, a Borrower may borrow, prepay and reborrow
Revolving Loans.

          (b) The Borrowers and any one or more Lenders (including New Lenders) may from time to time
agree that such Lenders shall make, obtain or increase the amount of their Commitments by executing
and delivering to the Managing Administrative Agent an Increased Facility Activation Notice
specifying (i) the amount of such increase and (ii) the applicable Increased Facility Closing Date.
Notwithstanding the foregoing, without the consent of the Required Lenders, (x) in no event shall
the aggregate amount of the Commitments exceed $780,000,000 and (y) each increase effected pursuant
to this paragraph shall be in a minimum amount of at least $50,000,000 (or, if less, the unused
portion of the amount in clause (x) above). No Lender shall have any obligation to participate in
any increase described in this paragraph unless it agrees to do so in its sole discretion. Any
additional bank, financial institution or other entity which, with the consent of the Borrowers and
the Managing Administrative Agent (which consent shall not be unreasonably withheld), elects to
become a “Lender” under this Agreement in connection with any transaction described in this Section
2.01(b) shall execute a New Lender Supplement (each, a “New Lender Supplement”),
substantially in the form of Exhibit D, whereupon such bank, financial institution or other entity
(a “New Lender”) shall become a Lender for all purposes and to the same extent as if
originally a party hereto and shall be bound by and entitled to the benefits of this Agreement.

          SECTION 2.02. Loans and Borrowings. (a) Each Revolving Loan shall be made as part of a Borrowing consisting of Revolving Loans
made by the Lenders ratably in accordance with their respective Commitments. Each Competitive Loan
shall be made in accordance with the procedures set forth in Section 2.04. The failure of any
Lender to make any Loan required to be made by it shall not relieve any other Lender of its
obligations hereunder; provided that the Commitments and Competitive Bids of the Lenders
are several and no Lender shall be responsible for any other Lender’s failure to make Loans as
required.

          (b) Subject to Section 2.07(c)(iii) and Section 2.13, each Revolving Borrowing shall be
comprised entirely of Federal Funds Rate Loans or Eurodollar Loans as the relevant Borrower may
request in accordance herewith. Subject to Section 2.13, each Competitive Borrowing shall be
comprised entirely of Eurodollar Loans or Fixed Rate Loans as the relevant Borrower may request in
accordance herewith. Subject to Section 2.12(d), each Swingline Loan shall bear interest in a
manner and for a period to be agreed upon by the relevant Borrower and the applicable Swingline
Lender, provided that in the event such Borrower requests a Swingline Loan and does not
agree upon a period and interest rate with the applicable Swingline Lender with respect thereto,
such Swingline Loan shall be a Federal Funds Rate Loan. Each Lender at its option may make any
Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such
Loan; provided that any exercise of such option shall not
affect the obligation of the relevant Borrower to repay such Loan in accordance with the terms
of this Agreement.

          (c) At the commencement of each Interest Period for any Eurodollar Revolving Borrowing, such
Borrowing shall be in an aggregate amount that is an integral multiple of $25,000,000 and not less
than $25,000,000. At the time that each Federal Funds Rate Revolving Borrowing is made, such
Borrowing shall be in an aggregate amount that is an integral multiple of $25,000,000 and not less
than $25,000,000; provided that a Federal Funds Rate Revolving Borrowing may be in an
aggregate amount that is equal to the entire unused balance of the total Commitments. Each
Competitive Borrowing shall be in an aggregate amount that is an integral multiple of $25,000,000
and not less than $25,000,000. Each Swingline Loan shall be in an amount that is an integral
multiple of $5,000,000 and not less than $5,000,000. Borrowings of more than one Type and Class
may be outstanding at the same time; provided that there shall not at any time be more than
a total of six Eurodollar Revolving Borrowings outstanding.

17

 

          (d) Notwithstanding any other provision of this Agreement, a Borrower shall not be entitled to
request, or to elect to convert or continue, any Borrowing if the Interest Period requested with
respect thereto would end after the Commitment Termination Date (if such Interest Period commences
prior to the Commitment Termination Date) or the Term-Out Maturity Date (if such Interest Period
commences on or after the Commitment Termination Date).

          SECTION 2.03. Requests for Revolving Borrowings. To request a Revolving Borrowing, a Borrower shall notify the Managing Administrative
Agent of such request by telephone (a) in the case of a Eurodollar Revolving Borrowing, not later
than 12:00 noon, New York City time, three Business Days before the date of the proposed Borrowing
or (b) in the case of a Federal Funds Rate Revolving Borrowing, not later than 12:00 noon, New York
City time, on the date of the proposed Borrowing. A Borrower may request that more than one
Revolving Borrowing be made on the same day. Each such telephonic Borrowing Request shall be
irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Managing
Administrative Agent of a written Borrowing Request in a form approved by the Managing
Administrative Agent and signed by the relevant Borrower. Each such telephonic and written
Borrowing Request shall specify the following information in compliance with Section 2.02:

	 	(i)	 	the Borrower;
	 
	 	(ii)	 	the aggregate amount of the requested Borrowing;
	 
	 	(iii)	 	the date of such Borrowing, which shall be a Business
Day;
	 
	 	(iv)	 	whether such Borrowing is to be a Federal Funds Rate
Revolving Borrowing or a Eurodollar Revolving Borrowing;
	 
	 	(v)	 	in the case of a Eurodollar Revolving Borrowing, the
initial Interest Period to be applicable thereto, which shall be a
period contemplated by the definition of the term “Interest Period”;
and
	 
	 	(vi)	 	the location and number of such Borrower’s account to
which funds are to be disbursed, which shall comply with the
requirements of Section 2.06.

If no election as to the Type of Revolving Borrowing is specified, then the requested Revolving
Borrowing shall be a Federal Funds Rate Borrowing. If no Interest Period is specified with respect
to any requested Eurodollar Revolving Borrowing, then the applicable Borrower shall be deemed to
have selected an Interest Period of one month’s duration. Promptly following receipt of a
Borrowing Request in accordance with this Section, the Managing Administrative Agent shall advise
each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of
the requested Borrowing.

          SECTION 2.04. Competitive Bid Procedure. (a) Subject to the terms and conditions set forth herein, from time to time during the
Availability Period a Borrower may request Competitive Bids and may (but shall not have any
obligation to) accept Competitive Bids and borrow Competitive Loans; provided that the sum
of the total Credit Exposures plus the aggregate principal amount of outstanding Competitive Loans
to all the Borrowers at any time shall not exceed the total Commitments. To request Competitive
Bids, a Borrower shall notify the Managing Administrative Agent of such request by telephone, in
the case of a Eurodollar Competitive Borrowing, not later than 12:00 noon, New York City time, four
Business Days before the date of the proposed Borrowing and, in the case of a Fixed Rate Borrowing,
not later than 10:00 a.m., New York City time, one Business Day before the date of the

18

 

proposed Borrowing; provided that a Borrower may submit up to (but not more than) three Competitive
Bid Requests on the same day, but a Competitive Bid Request shall not be made within five Business
Days after the date of any previous Competitive Bid Request, unless any and all such previous
Competitive Bid Requests shall have been withdrawn or all Competitive Bids received in response
thereto rejected. Each such telephonic Competitive Bid Request shall be confirmed promptly by hand
delivery or telecopy to the Managing Administrative Agent of a written Competitive Bid Request in a
form approved by the Managing Administrative Agent and signed by the relevant Borrower. Each such
telephonic and written Competitive Bid Request shall specify the following information in
compliance with Section 2.02:

	 	(i)	 	The Borrower;
	 
	 	(ii)	 	the aggregate amount of the requested Borrowing;
	 
	 	(iii)	 	the date of such Borrowing, which shall be a Business Day;
	 
	 	(iv)	 	whether such Borrowing is to be a Eurodollar Competitive
Borrowing or a Fixed Rate Borrowing;
	 
	 	(v)	 	the Interest Period to be applicable to such Borrowing, which
shall be a period contemplated by the definition of the term “Interest Period”;
and
	 
	 	(vi)	 	the location and number of such Borrower’s account to which
funds are to be disbursed, which shall comply with the requirements of Section
2.06.

Promptly following receipt of a Competitive Bid Request in accordance with this Section, the
Managing Administrative Agent shall notify the Lenders of the details thereof by telecopy, inviting
the Lenders to submit Competitive Bids.

          (b) Each Lender may (but shall not have any obligation to) make one or more Competitive Bids
to a Borrower in response to a Competitive Bid Request. Each Competitive Bid by a Lender must be
in a form approved by the Managing Administrative Agent and must be received by the Managing
Administrative Agent by telecopy, in the case of a Eurodollar Competitive Borrowing, not later than
9:30 a.m., New York City time, three Business Days before the proposed date of such Competitive
Borrowing, and in the case of a Fixed Rate Borrowing, not later than 9:30 a.m., New York City
time, on the proposed date of such Competitive Borrowing. Competitive Bids that do not conform
substantially to the form approved by the Managing Administrative Agent may be rejected by the
Managing Administrative Agent, and the Managing Administrative Agent shall notify the applicable
Lender as promptly as practicable. Each Competitive Bid shall specify (i) the principal amount
(which shall be a minimum of $5,000,000 and an integral multiple of $1,000,000 and which may equal
the entire principal amount of the Competitive Borrowing requested by such Borrower) of the
Competitive Loan or Loans that the applicable Lender is willing to make, (ii) the Competitive Bid
Rate or Rates at which the applicable Lender is prepared to make such Loan or Loans (expressed as a
percentage rate per annum in the form of a decimal to no more than four decimal places) and (iii)
the Interest Period applicable to each such Loan and the last day thereof.

          (c) The Managing Administrative Agent shall promptly notify the relevant Borrower by telecopy
of the Competitive Bid Rate and the principal amount specified in each Competitive Bid and the
identity of the Lender that shall have made such Competitive Bid.

          (d) Subject only to the provisions of this paragraph, the relevant Borrower may accept or
reject any Competitive Bid. Such Borrower shall notify the Managing Administrative Agent by

19

 

telephone, confirmed by telecopy in a form approved by the Managing Administrative Agent, whether
and to what extent it has decided to accept or reject each Competitive Bid, in the case of a
Eurodollar Competitive Borrowing, not later than 10:30 a.m., New York City time, three Business
Days before the date of the proposed Competitive Borrowing, and in the case of a Fixed Rate
Borrowing, not later than 10:30 a.m., New York City time, on the proposed date of the Competitive
Borrowing; provided that (i) the failure of such Borrower to give such notice shall be
deemed to be a rejection of each Competitive Bid, (ii) such Borrower shall not accept a Competitive
Bid made at a particular Competitive Bid Rate if such Borrower rejects a Competitive Bid made at a
lower Competitive Bid Rate, (iii) the aggregate amount of the Competitive Bids accepted by such
Borrower shall not exceed the aggregate amount of the requested Competitive Borrowing specified in
the related Competitive Bid Request, (iv) to the extent necessary to comply with clause (iii)
above, such Borrower may accept Competitive Bids at the same Competitive Bid Rate in part, which
acceptance, in the case of multiple Competitive Bids at such Competitive Bid Rate, shall be made
pro rata in accordance with the amount of each such Competitive Bid, and (v) except pursuant to
clause (iv) above, no Competitive Bid shall be accepted for a Competitive Loan unless such
Competitive Loan is in a minimum principal amount of $5,000,000 and an integral multiple of
$5,000,000; provided further that if a Competitive Loan must be in an amount less
than $5,000,000 because of the provisions of clause (iv) above, such Competitive Loan may be for a
minimum of $1,000,000 or any integral multiple thereof, and in calculating the pro rata allocation
of acceptances of portions of multiple Competitive Bids at a particular Competitive Bid Rate
pursuant to clause (iv) the amounts shall be rounded to integral multiples of $1,000,000 in a
manner determined by the relevant Borrower. A notice given by such Borrower pursuant to this
paragraph shall be irrevocable.

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

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

          SECTION 2.05. Swingline Loans. (a) Subject to the terms and conditions set forth herein, each Swingline Lender agrees to
make Swingline Loans to a Borrower from time to time during the Availability Period, in an
aggregate principal amount at any time outstanding that will not result in (i) the aggregate
principal amount of its outstanding Swingline Loans exceeding its Swingline Commitment or (ii) the
sum of the total Credit Exposures plus the aggregate principal amount of outstanding Competitive
Loans exceeding the total Commitments; provided that no Swingline Lender shall be required
to make a Swingline Loan to refinance any outstanding Swingline Loan. Within the foregoing limits
and subject to the terms and conditions set forth herein, a Borrower may borrow, prepay and
reborrow Swingline Loans.

          (b) To request a Swingline Loan, a Borrower shall notify the applicable Swingline Lender of
such request by telephone (confirmed by telecopy), not later than 2:00 p.m., New York City time, on
the day of a proposed Swingline Loan. Each such notice shall be irrevocable and shall specify the
requested date (which shall be a Business Day), the requested maturity date (which date shall be a
Business Day and a day not later than the earlier of the Commitment Termination Date and the tenth
Business Day after the date such Swingline Loan is to be made) and amount of the requested
Swingline Loan. Such Swingline Lender will determine with the relevant Borrower, as provided in
Section 2.12(e), the interest rate to be applicable to such Swingline Loan and will then promptly
advise the Managing

20

 

Administrative Agent of any such Swingline Loan. The applicable Swingline
Lender shall make each Swingline Loan available to such Borrower by 3:00 p.m., New York City time,
on the requested date of such Swingline Loan.

          (c) Any Swingline Lender may, by written notice given to the Managing Administrative Agent not
later than 10:00 a.m., New York City time, on any Business Day on or after the maturity date of any
of its Swingline Loans, require the Lenders to acquire participations on such Business Day in all
or a portion of such Swingline Loan. Such notice shall specify the aggregate amount of Swingline
Loans in which Lenders will participate. Promptly upon receipt of such notice, the Managing
Administrative Agent will give notice thereof to each Lender, specifying in such notice such
Lender’s Applicable Percentage of such Swingline Loan or Loans. Each Lender hereby absolutely and
unconditionally agrees, upon receipt of notice as provided above, to pay to the Managing
Administrative Agent, for the account of the applicable Swingline Lender, such Lender’s Applicable
Percentage of such Swingline Loan or Loans. Each Lender acknowledges and agrees that its
obligation to acquire participations in Swingline Loans pursuant to this paragraph is absolute and
unconditional and shall not be affected by any circumstance whatsoever, including the occurrence
and continuance of a Default or Event of Default or reduction or termination of the Commitments,
and that each such payment shall be made without any offset, abatement, withholding or reduction
whatsoever. Each Lender shall comply with its obligation under this paragraph by wire transfer of
immediately available funds, in the same manner as provided in Section 2.06 with respect to Loans
made by such Lender (and Section 2.06 shall apply, mutatis mutandis, to the payment
obligations of the Lenders), and the Managing Administrative Agent shall promptly pay to the
applicable Swingline Lender the amounts so received by it from the Lenders. The Managing
Administrative Agent shall notify the relevant Borrower of any participations in any Swingline Loan
acquired pursuant to this paragraph, and thereafter payments in respect of such Swingline Loan
shall be made to the Managing Administrative Agent and not to the applicable Swingline Lender. Any
amounts received by a Swingline Lender from a Borrower (or other party on behalf of such Borrower)
in respect of a Swingline Loan after receipt by such Swingline Lender of the proceeds of a sale of
participations therein shall be promptly remitted to the Managing Administrative Agent; any such
amounts received by the Managing Administrative Agent shall be promptly remitted by the Managing
Administrative Agent to the Lenders that shall have made their payments pursuant to this paragraph
and to the applicable Swingline Lender, as their interests may appear; provided that any
such payment so remitted shall be repaid to the Swingline Lender or to the Managing Administrative
Agent, as applicable,
if and to the extent such payment is required to be refunded to the relevant Borrower for any
reason. The purchase of participations in a Swingline Loan pursuant to this paragraph shall not
relieve any Borrower of any default in the payment thereof.

          SECTION 2.06. Funding of Borrowings. (a) Each Lender shall make each Loan to be made by it hereunder on the proposed date
thereof by wire transfer of immediately available funds by 3:00 p.m., New York City time, to the
account of the Managing Administrative Agent most recently designated by it for such purpose by
notice to the Lenders; provided that Swingline Loans shall be made as provided in Section
2.05. The Managing Administrative Agent will make such Loans available to the relevant Borrower by
promptly crediting the amounts so received, in like funds, to an account of such Borrower
maintained with the Managing Administrative Agent in New York City and designated by such Borrower
in the applicable Borrowing Request or Competitive Bid Request.

          (b) Unless the Managing Administrative Agent shall have received notice from a Lender prior to
the proposed date of any Borrowing that such Lender will not make available to the Managing
Administrative Agent such Lender’s share of such Borrowing, the Managing Administrative Agent may
assume that such Lender has made such share available on such date in accordance with paragraph (a)
of this Section and may, in reliance upon such assumption, make available to the relevant Borrower
a corresponding amount. In such event, if a Lender has not in fact made its share of the

21

 

applicable Borrowing available to the Managing Administrative Agent, then the applicable Lender and
such Borrower severally agree to pay to the Managing Administrative Agent forthwith on demand such
corresponding amount with interest thereon, for each day from and including the date such amount is
made available to such Borrower to but excluding the date of payment to the Managing Administrative
Agent, at (i) in the case of such Lender, the greater of the Federal Funds Rate and a rate
determined by the Managing Administrative Agent in accordance with banking industry rules on
interbank compensation or (ii) in the case of such Borrower, the Federal Funds Rate plus the
Applicable Rate. If such Lender pays such amount to the Managing Administrative Agent, then such
amount shall constitute such Lender’s Loan included in such Borrowing as of the date of such
Borrowing.

          SECTION 2.07. Interest Elections. (a) Each Revolving Borrowing initially shall be of the Type specified in the applicable
Borrowing Request and, in the case of a Eurodollar Revolving Borrowing, shall have an initial
Interest Period as specified in such Borrowing Request. Thereafter, a Borrower may elect to
convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a
Eurodollar Revolving Borrowing, may elect Interest Periods therefor, all as provided in this
Section. Such Borrower may elect different options with respect to different portions of the
affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders
holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be
considered a separate Borrowing. This Section shall not apply to Competitive Borrowings or
Swingline Borrowings, which may not be converted or continued.

          (b) To make an election pursuant to this Section, the relevant Borrower shall notify the
Managing Administrative Agent of such election by telephone by the time that a Borrowing Request
would be required under Section 2.03 if such Borrower were requesting a Revolving Borrowing of the
Type resulting from such election to be made on the effective date of such election. Each such
telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the Managing Administrative Agent of a written Interest Election Request in
a form approved by the Managing Administrative Agent and signed by the relevant Borrower.

          (c) Each telephonic and written Interest Election Request shall specify the following
information in compliance with Section 2.02:

     (i) the Borrowing to which such Interest Election Request applies and, if different
options are being elected with respect to different portions thereof, the portions thereof
to be allocated to each resulting Borrowing (in which case the information to be specified
pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);

     (ii) the effective date of the election made pursuant to such Interest Election
Request, which shall be a Business Day;

     (iii) whether the resulting Borrowing is to be a Federal Funds Rate Borrowing or a
Eurodollar Borrowing, provided that in the event that the relevant Borrower elects to extend
the date on which the Revolving Loans shall be due and payable in accordance with Section
2.09(a), then each Revolving Loan Borrowing outstanding on or after the Commitment
Termination Date shall be comprised of Alternate Base Rate Loans or Eurodollar Loans; and

     (iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term “Interest Period”.

22

 

If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an
Interest Period, then the relevant Borrower shall be deemed to have selected an Interest Period of
one month’s duration.

          (d) Promptly following receipt of an Interest Election Request, the Managing Administrative
Agent shall advise each Lender of the details thereof and of such Lender’s portion of each
resulting Borrowing.

          (e) If the relevant Borrower fails to deliver a timely Interest Election Request with respect
to a Eurodollar Revolving Borrowing prior to the end of the Interest Period applicable thereto,
then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such
Borrowing shall be converted to a Federal Funds Rate Borrowing. Notwithstanding any contrary
provision hereof, if an Event of Default has occurred and is continuing and the Managing
Administrative Agent, at the request of the Required Lenders, so notifies such Borrower, then, so
long as an Event of Default is continuing (i) no outstanding Revolving Borrowing may be converted
to or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Revolving
Borrowing shall be converted to an Alternate Base Rate Borrowing at the end of the Interest Period
applicable thereto.

          SECTION 2.08. Termination and Reduction of Commitments. (a) Unless previously terminated, the Commitments shall terminate on the Commitment
Termination Date.

          (b) The Borrowers may at any time terminate, or from time to time reduce, the Commitments;
provided that (i) each reduction of the Commitments shall be in an amount that is an
integral multiple of $25,000,000 and not less than $25,000,000 and (ii) the Borrowers shall not
terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the
Loans in accordance with Section 2.10, the sum of the Credit Exposures plus the aggregate principal
amount of outstanding Competitive Loans would exceed the total Commitments. The Borrowers may at
any time terminate, or from time to time reduce, the Swingline Commitments of one or more Swingline
Lenders
without any reduction or termination of the Commitments; provided that (i) each
reduction of any Swingline Commitment shall be in an amount that is an integral multiple of
$25,000,000 and not less than $25,000,000 and (ii) the Borrowers shall not terminate or reduce the
Swingline Commitment of any Swingline Lender if, after giving effect to such termination or
reduction, the sum of the outstanding Swingline Loans of such Swingline Lender would exceed its
Swingline Commitment.

          (c) The Borrowers shall notify the Managing Administrative Agent of any election to terminate
or reduce the Commitments under paragraph (b) of this Section at least three Business Days prior to
the effective date of such termination or reduction, specifying such election and the effective
date thereof. Promptly following receipt of any notice, the Managing Administrative Agent shall
advise the Lenders of the contents thereof. Each notice delivered by the Borrowers pursuant to
this Section shall be irrevocable; provided that a notice of termination of the Commitments
delivered by the Borrowers may state that such notice is conditioned upon the effectiveness of
other credit facilities, in which case such notice may be revoked by the Borrowers (by notice to
the Managing Administrative Agent on or prior to the specified effective date) if such condition is
not satisfied. Any termination or reduction of the Commitments shall be permanent. Each reduction
of the Commitments shall be made ratably among the Lenders in accordance with their respective
Commitments.

          (d) Upon the occurrence of a Change of Control with respect to CFC, the Managing
Administrative Agent, at the request of the Required Lenders, may, by notice to the Borrowers,
terminate the Commitments, such termination to be effective as of the date set forth in such notice
for the termination of the Commitments but in no event earlier than one Business Day following the
date such notice was delivered to the Borrowers.

23

 

          SECTION 2.09. Repayment of Loans; Evidence of Debt. (a) Each Borrower hereby unconditionally promises to pay (i) to the Managing
Administrative Agent for the account of each Lender the then unpaid principal amount of each
Revolving Loan with respect to such Borrower, on the Commitment Termination Date or on the Business
Day specified in any notice delivered by the Managing Administrative Agent referred to in Section
2.08(d), (ii) to the Managing Administrative Agent for the account of each applicable Lender the
then unpaid principal amount of each Competitive Loan with respect to such Borrower, on the last
day of the Interest Period applicable to such Loan and (iii) to each Swingline Lender the then
unpaid principal amount of any Swingline Loan with respect to such Borrower, owing to such
Swingline Lender on the maturity date applicable to such Swingline Loan. Upon receipt of any
payment or prepayment by a Swingline Lender from the relevant Borrower on account of the principal
amount of a Swingline Loan, such Swingline Lender shall provide written notice to the Managing
Administrative Agent of the date and amount of such payment or prepayment. Notwithstanding clause
(i) above, a Borrower may, upon written notice to the Managing Administrative Agent and each of the
Lenders given at least three Business Days prior to the Commitment Termination Date, extend the
date upon which the principal amount of the Revolving Loans outstanding to it as of the Commitment
Termination Date will be due and payable to the Term-Out Maturity Date. If a Borrower gives notice
to the Managing Administrative Agent in accordance with the preceding sentence, such Borrower
hereby agrees that the outstanding principal balance of each Revolving Loan to it outstanding on
the Commitment Termination Date shall be payable on the Term-Out Maturity Date. From and after the
Commitment Termination Date, any Revolving Loans for which a Borrower has elected the Term-Out
Maturity Date shall consist entirely of Alternate Base Rate Loans and Eurodollar Loans, and any
such Revolving Loans which consist of Federal Funds Rate Loans on the Commitment Termination Date
shall automatically be converted into Alternate Base Rate Loans in the absence of a conversion on
such date into Eurodollar Loans. It is understood that, whether or not the Term-Out Maturity Date
is selected, (x) the Commitments shall automatically terminate on the
Commitment Termination Date and (y) no maturity date for any Competitive Loan or Swingline
Loan may be extended beyond the Commitment Termination Date.

          (b) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of each Borrower to such Lender resulting from each Loan made by such
Lender, including the amounts of principal and interest payable and paid to such Lender from time
to time hereunder.

          (c) The Managing Administrative Agent shall maintain accounts in which it shall record (i) the
amount of each Loan made hereunder, the Class and Type thereof and the Interest Period applicable
thereto, (ii) the amount of any principal or interest due and payable or to become due and payable
from each Borrower to each Lender hereunder and (iii) the amount of any sum received by the
Managing Administrative Agent hereunder for the account of the Lenders and each Lender’s share
thereof.

          (d) The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this
Section shall be prima facie evidence of the existence and amounts of the
obligations recorded therein; provided that the failure of any Lender or the Managing
Administrative Agent to maintain such accounts or any error therein shall not in any manner affect
the obligation of a Borrower to repay its Loans in accordance with the terms of this Agreement.

          (e) Any Lender may request that Loans made by it be evidenced by a promissory note. In such
event, each relevant Borrower shall prepare, execute and deliver to such Lender a promissory note
payable to the order of such Lender (or, if requested by such Lender, to such Lender and its
registered assigns) and in a form approved by the Managing Administrative Agent. Thereafter, the
Loans evidenced by such promissory note and interest thereon shall at all times (including after

24

 

assignment pursuant to Section 10.04) be represented by one or more promissory notes in such form
payable to the order of the payee named therein (or, if such promissory note is a registered note,
to such payee and its registered assigns).

          SECTION 2.10. Prepayment of Loans. (a) A Borrower shall have the right at any time and from time to time to prepay any
Borrowing in whole or in part, subject to prior notice in accordance with paragraph (b) of this
Section.

          (b) A Borrower shall notify the Managing Administrative Agent (and, in the case of prepayment
of a Swingline Loan or Competitive Loan, the applicable Swingline Lender or the applicable Lender,
respectively) by telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case of
prepayment of a Eurodollar Revolving Borrowing, not later than 12:00 noon, New York City time,
three Business Days before the date of prepayment or (ii) in the case of prepayment of a Federal
Funds Rate Revolving Borrowing, an Alternate Base Rate Revolving Borrowing, a Fixed Rate Borrowing
or a Swingline Loan, not later than 12:00 noon, New York City time, on the date of prepayment.
Each such notice shall be irrevocable and shall specify the prepayment date and the principal
amount of each Borrowing or portion thereof to be prepaid; provided that, if a notice of
prepayment is given in connection with a conditional notice of termination of the Commitments as
contemplated by Section 2.08, then such notice of prepayment may be revoked if such notice of
termination is revoked in accordance with Section 2.08. Promptly following receipt of any such
notice relating to a Revolving Borrowing, the Managing Administrative Agent shall advise the
Lenders of the contents thereof. Each partial prepayment of any Revolving Borrowing shall be in
an amount that would be permitted in the case of an advance of a Revolving Borrowing of the same
Type as provided in Section 2.02. Each prepayment of a Revolving Borrowing shall be applied
ratably to the Loans included in the prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the extent required by Section 2.12.
From and after the Commitment Termination Date, amounts prepaid on account of Loans may not be
reborrowed.

          SECTION 2.11. Fees. (a) Each Borrower agrees to pay to the Managing Administrative Agent for the account of
each Lender a facility fee, it being specified that (i) the portion of the facility fee payable on
account of the used amount of the Commitments shall be paid by each Borrower proportionally to the
amount used by each of them under this Agreement on each day, and (ii) the portion of the facility
fee payable on account of the unused amount of the Commitments on each day shall be paid by CFC.
Facility fees shall accrue at the Applicable Rate on the daily amount of the Commitment of such
Lender (whether used or unused) during the period from and including the date hereof to but
excluding the date on which such Commitment terminates (and, if the Term-Out Maturity Date has been
selected, during the period from and including the Commitment Termination Date to but excluding the
Term-Out Maturity Date); provided that, if such Lender continues to have any outstanding
Loans after its Commitment terminates, then such facility fee shall continue to accrue on the daily
amount of such Lender’s Loans from and including the date on which its Commitment terminates
(including, without limitation, during any period after the Commitment Termination Date if the
Term-Out Maturity Date is selected) to but excluding the date on which such Lender ceases to have
any Loans outstanding. Facility fees accrued through and including the last day of March, June,
September and December of each year shall be payable on the third Business Day following such last
day, commencing on the first such date to occur after the date hereof; provided that all
such fees shall be payable on the date on which the Commitments terminate and any such fees
accruing after the date on which the Commitments terminate shall be payable on demand. All
facility fees shall be computed on the basis of a year of 360 days and shall be payable for the
actual number of days elapsed (including the first day but excluding the last day).

          (b) During the Availability Period (and, if the Term-Out Maturity Date has been selected,
during the period from and including the Commitment Termination Date to but excluding the Term-Out
Maturity Date), each Borrower agrees to pay to the Managing Administrative Agent for the

25

 

account of each Lender a utilization fee at the Applicable Rate on the aggregate amount of the
Revolving Loans under this Agreement outstanding with respect to such Borrower, on each day during
the quarter for which such fee is to be paid; provided, that no such fee shall be required
to be paid with respect to any day on which the aggregate amount of the Revolving Loans, Swingline
Loans and Competitive Loans then outstanding under this Agreement does not exceed 50% of the
aggregate Commitments of the Lenders then in effect under this Agreement (it being understood that
such amount shall be $0 on each day following the Commitment Termination Date). Such utilization
fee, to the extent payable, shall be payable quarterly in arrears on the last day of each March,
June, September and December, commencing on December 31, 2006 and on the Commitment Termination
Date, and, if applicable, the Term-Out Maturity Date (or, in any case, any earlier date on which
all amounts outstanding hereunder shall become due and payable by acceleration or otherwise). All
utilization fees shall be computed on the basis of a year of 360 days and shall be payable for the
actual number of days elapsed (including the first day but excluding the last day).

          (c) Each Borrower agrees to pay to the Managing Administrative Agent, for its own account,
fees payable in the amounts and at the times separately agreed upon between such Borrower and the
Managing Administrative Agent.

          (d) All fees payable hereunder shall be paid on the dates due, in immediately available funds,
to the Managing Administrative Agent for distribution, in the case of facility fees and utilization
fees, to the Lenders. Fees paid shall not be refundable under any circumstances.

          SECTION 2.12. Interest. (a) The Loans comprising each Federal Funds Rate Borrowing
shall bear interest at the Federal Funds Rate plus the Applicable Rate.

          (b) The Loans comprising each Alternate Base Rate Borrowing shall bear interest at the
Alternate Base Rate.

          (c) The Loans comprising each Eurodollar Borrowing shall bear interest (i) in the case of a
Eurodollar Revolving Loan, at the Adjusted LIBO Rate for the Interest Period in effect for such
Borrowing plus the Applicable Rate, or (ii) in the case of a Eurodollar Competitive Loan, at the
LIBO Rate for the Interest Period in effect for such Borrowing plus (or minus, as applicable) the
Margin applicable to such Loan.

          (d) Each Fixed Rate Loan shall bear interest at the Fixed Rate applicable to such Loan.

          (e) Each Swingline Loan shall bear interest in a manner to be agreed upon by the relevant
Borrower and the applicable Swingline Lender, provided that (i) in the event such Borrower
requests a Swingline Loan and does not agree upon an interest rate with such Swingline Lender with
respect thereto, such Swingline Loan shall bear interest at the Federal Funds Rate plus the
Applicable Rate and (ii) from and after the maturity date of such Swingline Loan, such Swingline
Loan (or participated portion thereof) shall bear interest at the Alternate Base Rate.

          (f) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or
other amount payable by a Borrower hereunder is not paid when due, whether at stated maturity, upon
acceleration or otherwise, such overdue amount shall bear interest, after as well as before
judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus
the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section
or (ii) in the case of any other amount, 2% plus the Alternate Base Rate.

26

 

          (g) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan and, in the case of Revolving Loans, upon termination of the Commitments;
provided that (i) interest accrued pursuant to paragraph (d) of this Section shall be
payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a
prepayment of a Federal Funds Rate Loan prior to the end of the Availability Period), accrued
interest on the principal amount repaid or prepaid shall be payable on the date of such repayment
or prepayment and (iii) in the event of any conversion of any Eurodollar Revolving Loan prior to
the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on
the effective date of such conversion.

          (h) All interest hereunder shall be computed on the basis of a year of 360 days, except that
interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is
based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap
year), and in each case shall be payable for the actual number of days elapsed (including the first
day but excluding the last day). The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO
Rate shall be determined by the Managing Administrative Agent, and such determination shall be
conclusive absent manifest error.

          SECTION 2.13. Alternate Rate of Interest. If prior to the commencement of any
Interest Period for a Eurodollar Borrowing:

     (a) the Managing Administrative Agent determines (which
determination shall be conclusive absent manifest error) that adequate
and reasonable means do not exist for ascertaining the Adjusted LIBO
Rate or the LIBO Rate, as applicable, for such Interest Period; or

     (b) the Managing Administrative Agent is advised by the Required
Lenders (or, in the case of a Eurodollar Competitive Loan, the Lender
that is required to make such Loan) that the Adjusted LIBO Rate or the
LIBO Rate, as applicable, for such Interest Period will not adequately
and fairly reflect the cost to such Lenders (or Lender) of making or
maintaining their Loans (or its Loan) included in such Borrowing for
such Interest Period;

then the Managing Administrative Agent shall give notice thereof to the Borrowers and the Lenders
by telephone or telecopy as promptly as practicable thereafter and, until the Managing
Administrative Agent notifies the Borrowers and the Lenders that the circumstances giving rise to
such notice no longer exist, (i) any Interest Election Request that requests the conversion of any
Revolving Borrowing to, or continuation of any Revolving Borrowing as, a Eurodollar Borrowing shall
be ineffective and such Revolving Borrowing shall be a Federal Funds Rate Revolving Borrowing (or,
after the Commitment Termination Date, an Alternate Base Rate Borrowing), (ii) if any Borrowing
Request requests a Eurodollar Revolving Borrowing, such Borrowing shall be made as a Federal Funds
Rate Revolving Borrowing and (iii) any request by a Borrower for a Eurodollar Competitive Borrowing
shall be ineffective; provided that if the circumstances giving rise to such notice do not
affect all the Lenders, then requests by a Borrower for Eurodollar Competitive Borrowings may be
made to Lenders that are not affected thereby.

          SECTION 2.14. Increased Costs. (a) If any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit extended by,
any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate); or

27

 

     (ii) impose on any Lender or the London interbank market any other condition affecting
this Agreement or Eurodollar Loans or Fixed Rate Loans made by such Lender;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Loan or Fixed Rate Loan (or of maintaining its obligation to make any
such Loan) or to increase the cost to such Lender or to reduce the amount of any sum received or
receivable by such Lender hereunder (whether of principal, interest or otherwise), then the
relevant Borrower will pay to such Lender such additional amount or amounts as will compensate such
Lender for such additional costs incurred or reduction suffered.

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

          (c) A certificate of a Lender setting forth the amount or amounts necessary to compensate such
Lender or its holding company, as the case may be, as specified in paragraph (a) or (b) of this
Section shall be delivered to each Borrower and shall be conclusive absent manifest error. Each
Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after
receipt thereof.

          (d) Failure or delay on the part of any Lender to demand compensation pursuant to this Section
shall not constitute a waiver of such Lender’s right to demand such compensation; provided
that a Borrower shall not be required to compensate a Lender pursuant to this Section for any
increased costs or reductions incurred more than 270 days prior to the date that such Lender
notifies such Borrower of the Change in Law giving rise to such increased costs or reductions and
of such Lender’s intention to claim compensation therefor; provided further that,
if the Change in Law giving rise to such increased costs or reductions is retroactive, then the
270-day period referred to above shall be extended to include the period of retroactive effect
thereof.

          (e) Notwithstanding the foregoing provisions of this Section, a Lender shall not be entitled
to compensation pursuant to this Section in respect of any Competitive Loan if the Change in Law
that would otherwise entitle it to such compensation shall have been publicly announced prior to
submission of the Competitive Bid pursuant to which such Loan was made.

          SECTION 2.15. Break Funding Payments. In the event of (a) the payment of any
principal of any Eurodollar Loan or Fixed Rate Loan other than on the last day of an Interest
Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any
Eurodollar Loan other than on the last day of the Interest Period applicable thereto, (c) the
failure to borrow, convert, continue or prepay any Eurodollar Loan or Fixed Rate Loan on the date
specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked
under Section 2.10(b) and is revoked in accordance therewith), (d) the failure to borrow any
Competitive Loan after accepting the Competitive Bid to make such Loan, or (e) the assignment of
any Eurodollar Loan or Fixed Rate Loan other than on the last day of the Interest Period applicable
thereto as a result of a request by a Borrower pursuant to Section 2.18, then, in any such event,
the relevant Borrower shall compensate each Lender for the loss, cost and expense attributable to
such event. In the case of a Eurodollar Loan, such loss, cost or expense

28

 

to any Lender shall be deemed to include an amount determined by such Lender to be the excess,
if any, of (i) the amount of interest which would have accrued on the principal amount of such Loan
had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such
Loan, for the period from the date of such event to the last day of the then current Interest
Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that
would have been the Interest Period for such Loan), over (ii) the amount of interest which would
accrue on such principal amount for such period at the interest rate which such Lender would bid
were it to bid, at the commencement of such period, for Dollar deposits of a comparable amount and
period from other banks in the eurodollar market. A certificate of any Lender setting forth any
amount or amounts that such Lender is entitled to receive pursuant to this Section shall be
delivered to the relevant Borrower and shall be conclusive absent manifest error. Such Borrower
shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt
thereof.

          SECTION 2.16. Taxes. (a) Any and all payments by or on account of any obligation of
each Borrower hereunder shall be made free and clear of and without deduction for any Indemnified
Taxes or Other Taxes; provided that if a 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 Managing Administrative Agent or affected 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, the relevant Borrower shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

          (c) Each Borrower shall indemnify the Managing Administrative Agent and each Lender, within 10
days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes
paid by the Managing 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 and reasonable expenses arising therefrom or with respect thereto,
whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted
by the relevant Governmental Authority. A certificate as to the amount of such payment or
liability delivered to such Borrower by a Lender, or by the Managing Administrative Agent on its
own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

          (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by a Borrower
to a Governmental Authority, such Borrower shall deliver to the Managing 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 Managing Administrative Agent.

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

29

 

          (f) If the Managing Administrative Agent or a Lender determines, in its sole discretion, that
it has received a refund of any Taxes or Other Taxes as to which it has been indemnified by a
Borrower or with respect to which a Borrower has paid additional amounts pursuant to this Section
2.16, it shall pay over such refund to such Borrower (but only to the extent of indemnity payments
made, or additional amounts paid, by such Borrower under this Section 2.16 with respect to the
Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Managing
Administrative Agent or such Lender and without interest (other than any interest paid by the
relevant Governmental Authority with respect to such refund); provided, that such Borrower, upon
the request of the Managing Administrative Agent or such Lender, agrees to repay the amount paid
over to such Borrower (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) to the Managing Administrative Agent or such Lender in the event the
Managing Administrative Agent or such Lender is required to repay such refund to such Governmental
Authority. This Section shall not be construed to require the Managing Administrative Agent or any
Lender to make available its tax returns (or any other information relating to its taxes which it
deems confidential) to a Borrower or any other Person.

          SECTION 2.17. Payments Generally; Pro Rata Treatment; Sharing of Set-offs. (a) Each
Borrower shall make each payment required to be made by it hereunder (whether of principal,
interest, fees or of amounts payable under Section 2.14, 2.15 or 2.16, or otherwise) prior to 12:00
noon, New York City time, on the date when due, in immediately available funds, without set-off or
counterclaim. Any amounts received after such time on any date may, in the discretion of the
Managing Administrative Agent, be deemed to have been received on the next succeeding Business Day
for purposes of calculating interest thereon. All such payments shall be made to the Managing
Administrative Agent at its offices at 200 Park Avenue, New York, New York, except payments to be
made directly to Swingline Lenders as expressly provided herein and except that payments pursuant
to Sections 2.14, 2.15, 2.16 and 10.03 shall be made directly to the Persons entitled thereto. The
Managing Administrative Agent shall distribute any such payments received by it for the account of
any other Person to the appropriate recipient promptly following receipt thereof. Each payment
(including each prepayment) on account of principal of and interest on the Revolving Loans shall be
made pro rata according to the respective outstanding principal amounts of the
Revolving Loans then held by the Lenders. If any payment hereunder shall be due on a day that is
not a Business Day, the date for payment shall be extended to the next succeeding Business Day,
and, in the case of any payment accruing interest, interest thereon shall be payable for the period
of such extension. All payments hereunder shall be made in Dollars.

          (b) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its Revolving Loans or
Swingline Loans resulting in such Lender receiving payment of a greater proportion of the aggregate
amount of its Revolving Loans and Swingline Loans and accrued interest thereon than the proportion
received by any other Lender, then the Lender receiving such greater proportion shall purchase (for
cash at face value) participations in the Revolving Loans and participations in Swingline Loans of
other Lenders to the extent necessary so that the benefit of all such payments shall be shared by
the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on
their respective Revolving Loans and participations in Swingline Loans; provided that (i)
if any such participations are purchased and all or any portion of the payment giving rise thereto
is recovered, such participations shall be rescinded and the purchase price restored to the extent
of such recovery, without interest, and (ii) the provisions of this paragraph shall not be
construed to apply to any payment made by a Borrower pursuant to and in accordance with the express
terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of
or sale of a participation in any of its Loans to any assignee or participant, other than to a
Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall
apply). Each Borrower consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the foregoing

30

 

arrangements may exercise against such Borrower rights of set-off and counterclaim with
respect to such participation as fully as if such Lender were a direct creditor of such Borrower in
the amount of such participation.

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

          (d) If any Lender shall fail to make any payment required to be made by it pursuant to Section
2.05(c), 2.06(b) or 2.17(c), then the Managing Administrative Agent may, in its discretion
(notwithstanding any contrary provision hereof), apply any amounts thereafter received by the
Managing Administrative Agent for the account of such Lender to satisfy such Lender’s obligations
under such Sections until all such unsatisfied obligations are fully paid.

          SECTION 2.18. Mitigation Obligations; Replacement of Lenders. (a) If any Lender
requests compensation under Section 2.14, or if any Borrower is required to pay any additional
amount to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 2.16, then such Lender shall use reasonable efforts to designate a different lending office
for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to
another of its offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.14 or
2.16, 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 and attributable to such
Borrower in connection with any such designation or assignment.

          (b) If any Lender requests compensation under Section 2.14, or if any Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 2.16, or if any Lender defaults in its obligation to fund Loans hereunder, then
the relevant Borrower may, at its sole expense and effort, upon notice to such Lender and the
Managing Administrative Agent, require such Lender to assign and delegate, without recourse (in
accordance with and subject to the restrictions contained in Section 10.04), all its interests,
rights and obligations under this Agreement (other than any outstanding Competitive Loans held by
it) to an assignee that shall assume such obligations (which assignee may be another Lender, if a
Lender accepts such assignment); provided that (i) such Borrower shall have received the
prior written consent of the Managing Administrative Agent, which consent shall not unreasonably be
withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans (other than Competitive Loans) and participations in Swingline Loans,
accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the
assignee (to the extent of such outstanding principal and accrued interest and fees) or the
relevant Borrower (in the case of all other amounts) and (iii) in the case of any such assignment
resulting from a claim for compensation under Section 2.14 or payments required to be made pursuant
to Section 2.16, such assignment will result in a reduction in such compensation or payments. A
Lender shall not be required to make any such assignment and delegation if, prior thereto,

31

 

as a result of a waiver by such Lender of its claims under Section 2.14 or 2.16 or otherwise,
the circumstances entitling the relevant Borrower to require such assignment and delegation cease
to apply.

          SECTION 2.19. Extension of Commitment Termination Date. (a) CFC may, by written
notice to the Managing Administrative Agent (such notice being an “Extension Notice”) given
no earlier than 60 days and no later than 45 days prior to the Commitment Termination Date, request
the Lenders to consider an extension of the then applicable Commitment Termination Date to a date
364 days after the then applicable Commitment Termination Date. The Managing Administrative Agent
shall promptly transmit any Extension Notice to each Lender. Each Lender shall notify the Managing
Administrative Agent whether it wishes to extend the then applicable Commitment Termination Date no
later than 20 days prior to such Commitment Termination Date, and any such notice given by a Lender
to the Managing Administrative Agent, once given, shall be irrevocable as to such Lender. Any
Lender which does not expressly notify the Managing Administrative Agent prior to such 20-day
period that it wishes to so extend the then applicable Commitment Termination Date shall be deemed
to have rejected the Borrowers’ request for extension of such Commitment Termination Date. Lenders
consenting to extend the then applicable Commitment Termination Date are hereinafter referred to as
“Extending Lenders”, and Lenders declining to consent to extend such Commitment Termination
Date (or Lenders deemed to have so declined) are hereinafter referred to as “Non-Extending
Lenders”. If the Required Lenders have elected (in their sole and absolute discretion) to so
extend the Commitment Termination Date, the Managing Administrative Agent shall notify CFC of such
election by such Required Lenders no later than 15 days prior to such Commitment Termination Date,
and upon receipt of such notice CFC shall promptly inform the Managing Administrative Agent whether
or not one or more Borrowers wish to extend the Commitment Termination Date with respect to the
Commitments of the Extending Lenders. In the event that one or more Borrowers elect to accept the
Extending Lenders’ offer to extend the Commitment Termination Date, the Commitment Termination Date
of such Extending Lenders shall be so extended. No extension will be permitted hereunder if any
Borrower has selected the Term-Out Maturity Date pursuant to Section 2.09(a). Upon the delivery of
an Extension Notice and upon the extension of the Commitment Termination Date pursuant to this
Section 2.19, the relevant Borrowers shall be deemed to have represented and warranted on and as of
the date of such Extension Notice and the effective date of such extension, as the case may be,
that no Default or Event of Default has occurred and is continuing. Notwithstanding anything
contained in this Agreement to the contrary, no Lender shall have any obligation to extend the
Commitment Termination Date, and each Lender may at its option, unconditionally and without cause,
decline to extend the Commitment Termination Date.

          (b) If the Commitment Termination Date shall have been extended in accordance with Section
2.19(a), all references herein to the “Commitment Termination Date” shall refer to the Commitment
Termination Date as so extended and all references herein to the “Term-Out Maturity Date” shall
refer to a date which is the first anniversary of the Commitment Termination Date as so extended.

          (c) If any Lender shall determine not to extend the Commitment Termination Date as requested
by any Extension Notice given by the Borrowers pursuant to Section 2.19(a), the Commitment of such
Lender shall terminate on the Commitment Termination Date without giving any effect to such
proposed extension, and each Borrower shall on such date pay to the Managing Administrative Agent,
for the account of such Lender, the principal amount of, and accrued interest on, such Lender’s
Loans to such Borrower, together with any amounts payable to such Lender pursuant to Section 2.15
and any fees or other amounts owing to such Lender by such Borrower under this Agreement. The
Aggregate Commitment shall be reduced by the amount of the Commitment of such Non-Extending Lender.

          (d) If the Commitment Termination Date shall have been extended in respect of Extending
Lenders in accordance with Section 2.19(a), any notice of borrowing pursuant to Section 2.03
specifying a Borrowing Date occurring after the Commitment Termination Date applicable to a Non-

32

 

Extending Lender or requesting an Interest Period extending beyond such date shall (a) have no
effect in respect of such Non-Extending Lender and (b) not specify a requested aggregate principal
amount exceeding the Aggregate Available Commitment (calculated on the basis of the Commitments of
the Extending Lenders).

ARTICLE III

Representations and Warranties

          CFC represents and warrants to the Lenders, as to itself and (where applicable) its
Subsidiaries, and CB represents and warrants to the Lenders, as to itself and (where applicable)
its Subsidiaries, that:

          SECTION 3.01. Organization; Powers. Each of CFC and CB and any of their respective
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,
could not reasonably be expected to result in a Material Adverse Effect, is qualified to do
business in, and is in good standing in, every jurisdiction where such qualification is required.

          SECTION 3.02. Authorization; Enforceability. The Transactions are within CFC’s, CHL’s
and CB’s corporate powers and have been duly authorized by all necessary corporate and, if
required, stockholder action. This Agreement has been duly executed and delivered by each of CFC,
CHL and CB and each of this Agreement and, when executed and delivered, each of the other Loan
Documents constitutes a legal, valid and binding obligation of each of CFC, CHL and CB, 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.

          SECTION 3.03. 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 CFC or CB or any of their respective Subsidiaries or any order of any
Governmental Authority, (c) will not violate or result in a default under any indenture, agreement
or other instrument binding upon CFC, or CB or any of their respective Subsidiaries or its assets,
or give rise to a right thereunder to require any payment to be made by CFC or CB or any of their
respective Subsidiaries, and (d) will not result in the creation or imposition of any Lien on any
asset of CFC, or CB or any of their respective Subsidiaries.

          SECTION 3.04. Financial Condition; No Material Adverse Change. (a) CFC has
heretofore furnished to the Lenders its consolidated and consolidating balance sheet and statements
of income, changes in stockholders equity and cash flows (i) as of and for the fiscal years ended
December 31, 2004 and December 31, 2005, in the case of such consolidated statements, reported on
by KPMG LLP, independent public accountants, and (ii) (except for the consolidated and
consolidating statements of changes in stockholders equity) as of and for the fiscal quarter and
the portion of the fiscal year ended September 30, 2006, certified by its chief financial officer.
Such financial statements present fairly, in all material respects, the financial condition and
results of operations and cash flows of CFC and its consolidated subsidiaries as of such dates and
for such periods in accordance with GAAP, subject to year-end adjustments and the absence of
footnotes in the case of the statements referred to in clause (ii) above.

33

 

          (b) CB has heretofore furnished to the Lenders its consolidated balance sheet and statements
of income, changes in stockholders equity and cash flows (i) as of and for the fiscal years ended
December 31, 2004 and December 31, 2005, reported on by KPMG LLP, independent public accountants,
and (ii) (except for the consolidated statements of changes in stockholders equity) as of and for
the fiscal quarter and the portion of the fiscal year ended September 30, 2006, certified by its
chief financial officer. Such financial statements present fairly, in all material respects, the
financial condition and results of operations and cash flows of CB and its consolidated
subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end
adjustments and the absence of footnotes in the case of the statements referred to in clause (ii)
above.

          (c) Since December 31, 2005, there has been no material adverse change in the business,
assets, operations or condition, financial or otherwise, of CFC and its Subsidiaries, taken as a
whole, or CB and its Subsidiaries, taken as a whole.

          SECTION 3.05. Properties. (a) Each of CFC and CB and any of their respective
Subsidiaries has good title to, or valid leasehold interests in, all its real and personal property
material to its business, except for minor defects in title that do not interfere with its ability
to conduct its business as currently conducted or to utilize such properties for their intended
purposes. None of such property is subject to any Lien except as permitted by Section 6.02.

          (b) Each of CFC and CB and any of their respective 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 CFC and CB and any of their respective Subsidiaries does not
infringe upon the rights of any other Person, except for any such infringements that, individually
or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

          SECTION 3.06. Litigation and Environmental Matters. (a) There are no actions, suits,
investigations or proceedings by or before any arbitrator or Governmental Authority pending against
or, to the knowledge of CFC or CB, as the case may be, threatened against or affecting CFC or CB or
any of their respective Subsidiaries which (i) are reasonably likely, individually or in the
aggregate, to result in a Material Adverse Effect (other than the Disclosed Matters) or (ii)
involve this Agreement, any of the other Loan Documents or the Transactions.

          (b) Except for the Disclosed Matters and except with respect to any other matters that,
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse
Effect, neither CFC nor CB nor any of their respective 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.

          (c) Since the date of this Agreement, there has been no change in the status of the Disclosed
Matters that, individually or in the aggregate, has resulted in, or materially increased the
likelihood of, a Material Adverse Effect.

          SECTION 3.07. Compliance with Laws and Agreements. Each of CFC and CB and any of
their respective 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, could not reasonably be expected to result in a Material Adverse Effect. No Default
or Event of Default has occurred and is continuing.

34

 

          SECTION 3.08. Investment Company Status. Neither CFC nor CB nor any of their
respective Subsidiaries is an “investment company” as defined in, or subject to regulation under,
the Investment Company Act of 1940.

          SECTION 3.09. Taxes. Each of CFC and CB and any of their respective 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 CFC or CB or any of their
respective Subsidiaries, as applicable, has set aside on its books adequate reserves to the extent
required by GAAP or (b) to the extent that the failure to do so could not reasonably be expected to
result in a Material Adverse Effect.

          SECTION 3.10. ERISA. No ERISA Event has occurred or is reasonably expected to occur
that, when taken together with all other such ERISA Events for which liability is reasonably
expected to occur, could reasonably be expected to result in a Material Adverse Effect. The
present value of all accumulated benefit obligations under each Plan (based on the assumptions used
for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the
most recent financial statements reflecting such amounts, exceed by more than $150,000,000 the fair
market value of the assets of such Plan, and the present value of all accumulated benefit
obligations of all underfunded Plans (based on the assumptions used for purposes of Statement of
Financial Accounting Standards No. 87) did not, as of the date of the most recent financial
statements reflecting such amounts, exceed by more than $150,000,000 the fair market value of the
assets of all such underfunded Plans.

          SECTION 3.11. Disclosure. Each of CFC, CHL and CB has disclosed to the Lenders all
agreements, instruments and corporate or other restrictions to which it or any of its subsidiaries
is subject, and all other matters known to it, that, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect. Neither the Information Memorandum
nor any of the other reports, financial statements, certificates or other information furnished by
or on behalf of CFC, CHL or CB to the Managing 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,
each of CFC, CHL and CB represents only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time.

          SECTION 3.12. Federal Regulations. No part of the proceeds of any Loans will be used
for “buying” or “carrying” any “margin stock” within the respective meanings of each of the quoted
terms under Regulation U of the Board as now and from time to time hereafter in effect or for any
purpose that violates the provisions of the Regulations of the Board. If requested by any Lender
or the Managing Administrative Agent, each Borrower will furnish to the Managing Administrative
Agent and each Lender a statement to the foregoing effect in conformity with the requirements of FR
Form G-3 or FR Form U-1, as applicable, referred to in Regulation U of the Board.

          SECTION 3.13. Subsidiaries. Except as disclosed to the Managing Administrative Agent
by CFC or CB in writing from time to time after the Effective Date, (a) Schedule 3.13 sets forth
the name and jurisdiction of incorporation of each Material Subsidiary and, as to each such
Material Subsidiary, the percentage of each class of Equity Interests owned by it and (b) there are
no outstanding subscriptions, options, warrants, calls, rights or other agreements or commitments
(other than stock options granted to employees or directors and directors’ qualifying shares) of
any nature relating to any Equity Interests of CFC or CHL or any Material Subsidiary, except as
created by the Loan Documents.

35

 

ARTICLE IV

Conditions

          SECTION 4.01. Effective Date. The obligations of the Lenders to make Loans hereunder
shall not become effective until the date on which each of the following conditions is satisfied
(or waived in accordance with Section 10.02):

     (a) The Managing 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 Managing 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.

     (b) The Managing Administrative Agent shall have received
favorable written opinions (addressed to the Managing Administrative
Agent and the Lenders and dated the Effective Date) of counsel to CFC,
CHL and CB, substantially in the form of Exhibit C, and covering such
other matters relating to CFC, CHL, CB, this Agreement, the other Loan
Documents or the Transactions as the Required Lenders shall reasonably
request.

     (c) The Managing Administrative Agent shall have received a
closing certificate in the form of Exhibit A from each of CFC, CHL and
CB and such other documents and certificates as the Managing
Administrative Agent or its counsel may reasonably request relating to
the organization, existence and good standing of CFC, CHL and CB, the
authorization of the Transactions and any other legal matters relating
to CFC, CHL and CB, this Agreement, the other Loan Documents or the
Transactions, all in form and substance satisfactory to the Managing
Administrative Agent and its counsel.

     (d) The Managing Administrative Agent shall have received evidence
satisfactory to it that the Existing Credit Agreement and the
commitments thereunder shall be terminated concurrently with the
effectiveness of this Agreement and all amounts thereunder (including
accrued interest and fees) shall be paid in full and that the Five-Year
Credit Agreement is effective.

     (e) The Managing Administrative Agent, the Administrative Agent
and the Lenders shall have received all fees and other amounts due and
payable to such parties on or prior to the Effective Date, including,
to the extent invoiced, reimbursement or payment of all out-of-pocket
expenses required to be reimbursed or paid by any Borrower hereunder.

The Managing Administrative Agent shall notify the Borrowers and the Lenders of the Effective Date,
and such notice shall be conclusive and binding. 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 10.02) at or prior to 3:00 p.m., New York City time, on November 17,
2006 (and, in the event such conditions are not so satisfied or waived, the Commitments shall
terminate at such time).

36

 

Notwithstanding the foregoing, it is agreed that to the extent that the opinion with respect to CB
or any of the documents or certificates with respect to it to be delivered pursuant to paragraph
(b) or (c) above has not been received by such time on November 17, 2006, the Effective Date shall
nonetheless occur and it shall be a condition to the first Borrowing by CB hereunder that each such
opinion, document and certificate have been delivered prior thereto.

          SECTION 4.02. Each Credit Event. The obligation of each Lender to make a Loan on the
occasion of any Borrowing is subject to the satisfaction of the following conditions:

     (a) The representations and warranties of the relevant Borrower
set forth in this Agreement (other than the representations and
warranties set forth in Sections 3.04(c) and 3.06(a) for Borrowings
after the Effective Date) 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, no Default or Event of Default shall have occurred and be
continuing with respect to any Borrower.

Each Borrowing shall be deemed to constitute a representation and warranty by the relevant Borrower
on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section.

ARTICLE V

Affirmative Covenants

          Until the Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees payable hereunder shall have been paid in full, each of CFC (with respect to
CFC and (where applicable) its Subsidiaries) and CB (with respect to CB and (where applicable) its
Subsidiaries) covenants and agrees with the Lenders that:

          SECTION 5.01. Financial Statements; Ratings Change and Other Information. (a) CFC
will furnish to the Managing Administrative Agent and each Lender:

(i) within 90 days after the end of each fiscal year of CFC,

     (A) the audited consolidated balance sheet and related
statements of earnings, changes in stockholders’ equity and cash
flows of CFC and its subsidiaries as of the end of and for such year,
setting forth the figures as of the end of and for the previous
fiscal year in comparative form, which consolidated financial
statements shall be reported on by KPMG LLP or other independent
public accountants of recognized national standing (without a “going
concern” or like qualification or exception and without any
qualification or exception as to the scope of such audit) to the
effect that such consolidated financial statements present fairly in
all material respects the financial condition and results of
operations of CFC and its Subsidiaries on a consolidated basis in
accordance with GAAP consistently applied; and

     (B) the unaudited consolidating balance sheet and related
statement of earnings of CFC and its Subsidiaries as of the end of
and for such year, certified by one of its Financial Officers as
presenting fairly in

37

 

all material respects the financial condition and results of
operations of CFC and its Subsidiaries on a consolidating basis in
accordance with GAAP consistently applied, subject to the absence of
footnotes;

     (ii) within 45 days after the end of each of the first three fiscal
quarters of each fiscal year of CFC,

     (A) the consolidated balance sheet and related statements of
earnings and cash flows of CFC and its Subsidiaries as of the end of
and for such fiscal quarter and the then elapsed portion of the
fiscal year, setting forth in the case of CFC and its Subsidiaries
the figures for the corresponding period or periods of (or, in the
case of the balance sheet, as of the end of) the previous fiscal year
in comparative form, all certified by one of its Financial Officers
as presenting fairly in all material respects the financial condition
and results of operations of CFC and its Subsidiaries on a
consolidated basis in accordance with GAAP consistently applied,
subject to normal year-end audit adjustments and the absence of
footnotes; and

     (B) the consolidating balance sheet and related statement of
earnings of CFC and its Subsidiaries as of the end and for such
fiscal quarter and the then elapsed portion of the fiscal year,
certified by one of its Financial Officers as presenting fairly in
all material respects the financial condition and results of
operations of CFC and its Subsidiaries on a consolidating basis in
accordance with GAAP consistently applied, subject to normal year-end
audit adjustments and the absence of footnotes;

     (iii) concurrently with any delivery of financial statements under
clause (i), or (ii) above, a certificate of a Financial Officer of CFC (i)
certifying as to whether a Default or Event of Default with respect to CFC
or CHL has occurred and, if such Default or Event of Default has occurred,
specifying the details thereof and any action taken or proposed to be taken
with respect thereto, (ii) setting forth the Consolidated Net Worth of CFC
and the respective requirements of Section 6.01 therefor and (iii) stating
whether any change in GAAP or in the application thereof has occurred since
the date of the audited financial statements referred to in Section 3.04
and, if any such change has occurred, specifying the effect of such change
on the financial statements accompanying such certificate.

          (b) CB will furnish to the Managing Administrative Agent and each Lender:

     (i) within 90 days after the end of each fiscal year of CB,

     (A) the audited consolidated balance sheet and related statements of
earnings and cash flows of CB and its subsidiaries as of the end of and for
such year, setting forth the figures as of the end of and for the previous
fiscal year in comparative form, which consolidated financial statements
shall be reported on by KPMG LLP or other independent public accountants of
recognized national standing (without a “going concern” or like
qualification or exception and without any qualification or exception as to
the scope of such audit) to the effect that such consolidated financial
statements present fairly in all material respects

38

 

the financial condition and results of operations of CB and its
Subsidiaries on a consolidated basis in accordance with GAAP consistently
applied; and

     (B) the unaudited call reports of CB and its Subsidiaries as of the
end of and for such year;

     (ii) within 45 days after the end of each of the first three fiscal
quarters of each fiscal year of CB,

     (A) the consolidated balance sheet and related statements of earnings
and cash flows of CB and its Subsidiaries as of the end of and for such
fiscal quarter and the then elapsed portion of the fiscal year, setting
forth in the case of CB and its Subsidiaries the figures for the
corresponding period or periods of (or, in the case of the balance sheet, as
of the end of) the previous fiscal year in comparative form, all certified
by one of its Financial Officers as presenting fairly in all material
respects the financial condition and results of operations of CB and its
Subsidiaries on a consolidated basis in accordance with GAAP consistently
applied, subject to normal year-end audit adjustments and the absence of
footnotes; and

     (B) the call reports of CB and its Subsidiaries as of the end and for
such fiscal quarter and the then elapsed portion of the fiscal year;

     (iii) concurrently with any delivery of financial statements under
clause (i), or (ii) above, a certificate of a Financial Officer of CB
certifying as to whether a Default or Event of Default with respect to CB
has occurred and, if such Default or Event of Default has occurred,
specifying the details thereof and any action taken or proposed to be taken
with respect thereto.

          (c) Each of CFC and CB, as relevant, will furnish to the Managing Administrative
Agent and each Lender:

     (i) promptly after the same become publicly available, copies of all
periodic and current reports filed on Forms 10-K, 10-Q and 8-K (or successor
forms), all proxy statements and all registration statements (other than
those filed on Form S-8) filed by it or any of its Subsidiaries with the SEC
or with any national securities exchange, or distributed by CFC (or, in the
event that CB has public shareholders, CB) to its respective shareholders
generally, as the case may be;

     (ii) promptly after Moody’s or S&P shall have announced a change in
the rating established or deemed to have been established for the Index
Debt, written notice of such rating change; and

     (iii) promptly following any request therefor, such other information
regarding the operations, business affairs and financial condition of CFC or
CB or any of its Subsidiaries, or compliance with the terms of this
Agreement or any of the other Loan Documents, as the Managing Administrative
Agent or any Lender may reasonably request.

39

 

Any delivery required to be made pursuant to Section 5.01(a)(i) and (ii), Section 5.01(b)(i) and
(ii), and Section 5.01(c)(i), and any notice required to be given pursuant to Section 5.01(a)(iii)
and Section 5.01(c)(ii) shall be deemed to have been made or given on the date on which CFC or CB,
as applicable, posts such delivery, or posts a press release or SEC filing containing the
information required by such notice, on the Internet at the website of CFC, or when such
delivery is posted on the SEC’s website on the Internet at www.sec.gov; provided that with
respect to any delivery required to be made pursuant to Section 5.01(a)(i) and (ii) and Section
5.01(b)(i) and (ii), CFC or CB, as applicable, shall have given notice (including
electronic notice) of any such posting to the Lenders, which notice shall include a link to the
applicable website to which such posting was made; provided, further, that
CFC or CB, as applicable, shall deliver paper copies of any delivery referred to in
Section 5.01(a)(i) and (ii) and Section 5.01(b)(i) and (ii) to any Lender that requests it, to
deliver such paper copies until notice to cease delivering such paper copies is given by such
Lender.

          SECTION 5.02. Notices of Material Events. Each of CFC and CB will furnish to the
Managing Administrative Agent and each Lender prompt written notice of the following as to itself
and (where applicable) its Subsidiaries:

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

     (b) the filing or commencement of any action, suit or proceeding
by or before any arbitrator or Governmental Authority against or
affecting CFC, CHL, CB or any Affiliate thereof that, if adversely
determined, could reasonably be expected to result in a Material
Adverse Effect;

     (c) the occurrence of any ERISA Event that, alone or together with
any other ERISA Events that have occurred, could reasonably be expected
to result in liability of the Borrowers and their subsidiaries in an
aggregate amount exceeding $100,000,000;

     (d) notice from any rating agency concerning a negative change in
any credit rating previously accorded to CFC, CHL or CB by such rating
agency or informing CFC, CHL or CB that it has been placed on negative
credit watch; and

     (e) any other development that results in, or could reasonably be
expected to result in, a Material Adverse Effect.

Each notice delivered under this Section shall set forth the details of the event or development
requiring such notice and any action taken or proposed to be taken with respect thereto.

          SECTION 5.03. Existence; Conduct of Business. Each of CFC and CB 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; provided that the
foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under
Section 6.03 and shall not prohibit CB from converting to a Federal savings bank regulated by OTS.

          SECTION 5.04. Payment of Obligations. Each of CFC and CB will, and will cause each of
its Subsidiaries to, pay its obligations, including Tax liabilities, that, if not paid, could
result in a Material Adverse Effect before the same shall become delinquent or in default, except
where (a) the validity or amount thereof is being contested in good faith by appropriate
proceedings, (b) CFC or CB or

40

 

such Subsidiary has set aside on its books adequate reserves with respect thereto in
accordance with GAAP and (c) the failure to make payment pending such contest could not reasonably
be expected to result in a Material Adverse Effect.

          SECTION 5.05. Maintenance of Properties; Insurance. Each of CFC and CB will, and will
cause each of its 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 engaged in the same or similar
businesses operating in the same or similar locations.

          SECTION 5.06. Hedging Program. CFC will maintain at all times a Hedging Program for
CFC and its Subsidiaries consistent with their Hedging Program in effect at and as of the Effective
Date with such changes thereto as CFC reasonably deems appropriate for the conduct of its ongoing
business.

          SECTION 5.07. Books and Records; Inspection Rights. Each of CFC and CB will, and will
cause each of its 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. Each of CFC and CB will, and will cause each of its Subsidiaries to, permit any
representatives designated by the Managing Administrative Agent or 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 with its officers and independent
accountants, all at such reasonable times and as often as reasonably requested.

          SECTION 5.08. Compliance with Laws and Contractual Obligations. Each of CFC and CB
will, and will cause each of its Subsidiaries to, comply with all Contractual Obligations and 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, could not reasonably be
expected to result in a Material Adverse Effect.

          SECTION 5.09. Environmental Laws. Each of CFC and CB will, and will cause each of its
Subsidiaries to:

          (a) Comply in all material respects with, and ensure compliance in all material respects by
all tenants and subtenants, if any, with, all applicable Environmental Laws, and obtain and comply
in all material respects with and maintain, and ensure that all tenants and subtenants obtain and
comply in all material respects with and maintain, any and all licenses, approvals, notifications,
registrations or permits required by applicable Environmental Laws; and

          (b) Conduct and complete all investigations, studies, sampling and testing, and all remedial,
removal and other actions required under Environmental Laws and promptly comply in all material
respects with all lawful orders and directives of all Governmental Authorities regarding
Environmental Laws.

          SECTION 5.10. Use of Proceeds. The proceeds of each of the Loans will be used only
for the general corporate purposes of the applicable Borrower. 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 Board, including Regulations T, U and X.

41

 

          SECTION 5.11. Compliance with Regulatory Requirements. Each of CFC and CB will, and
will cause each of its Subsidiaries which is a regulated bank to, comply with all minimum capital
ratios and guidelines, including, without limitation, risk-based capital guidelines and capital
leverage regulations applicable to it (as may from time to time be prescribed, by regulation or
enforceable order of the Board, the OCC, the OTS or other federal or state regulatory authorities
having jurisdiction over such Person), and within such ratios and guidelines, to the extent the
same may be applicable to it, be “adequately capitalized”. CFC will cause each of its Subsidiaries
which is a registered broker-dealer to comply with all material rules and regulations of the SEC,
the New York Stock Exchange and the National Association of Securities Dealers applicable to it
(including such rules and regulations dealing with net capital requirements).

ARTICLE VI

Financial and Negative Covenants

          Until the Commitments have expired or terminated and the principal of and interest on each
Loan and all fees payable hereunder have been paid in full, each of CFC (as to itself and (where
applicable) its Subsidiaries) and CB (as to itself and (where applicable) its Subsidiaries)
covenants and agrees with the Lenders that:

          SECTION 6.01. Financial Condition Covenants. CFC will not have a Consolidated Net
Worth at any time of less than $7,680,000,000.

          SECTION 6.02. Liens. Each of CFC and CB will not, and will not permit any of its
Subsidiaries to, 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) Specified MSR Liens; and

     (c) Liens not otherwise permitted by this Section which are incurred by CFC and its
Subsidiaries or CB and its Subsidiaries in the ordinary course of their hedging, financing
and securitization activities (including, in the case of CB, Liens incurred in connection
with borrowings by it from any Federal Home Loan Bank and, in the case of any of them, other
Liens incurred in connection with any type of hedging, financing or securitization
transaction undertaken in the ordinary course which reflects or represents an evolution or
extension of the practices conducted on the date hereof by entities similar to CFC and its
Subsidiaries or CB and its Subsidiaries, as the case may be);

provided that in no event shall any Lien permitted pursuant to paragraph (a) or (c) above
(other than Permitted Encumbrances described in clauses (a), (b) or (e) of the definition thereof)
encumber mortgage servicing rights, intercompany advances or stock and other equity interests
issued by Subsidiaries of CFC or CB, as the case may be.

          SECTION 6.03. Fundamental Changes. (a) Each of CFC and CB will not, and will not
permit any of its Subsidiaries 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, or all
or substantially all of the stock of any of its Subsidiaries (in each case, whether now owned or
hereafter acquired), or liquidate

42

 

or dissolve, except that, if at the time thereof and immediately after giving effect thereto
no Default or Event of Default shall have occurred and be continuing (i) any Subsidiary may merge
into CFC, CHL or CB in a transaction in which CFC, CHL or CB, as applicable, is the surviving
corporation, (ii) any Subsidiary of CFC or CB may merge into any other subsidiary of CFC or CB, as
the case may be, in a transaction in which the surviving entity is a subsidiary thereof, (iii) any
Subsidiary of CFC or CB may sell, transfer, lease or otherwise dispose of its assets to CFC or CB,
as the case may be, or to a Subsidiary thereof, (iv) any Subsidiary of CFC or CB may sell,
transfer, lease or otherwise dispose of its assets through transactions which are undertaken in the
ordinary course of its business or determined by CFC or CB, as the case may be, in good faith to be
in the best interests of it and its Subsidiaries, (v) any Subsidiary of CFC or CB (other than CHL)
may liquidate or dissolve if CFC or CB, as the case may be, determines in good faith that such
liquidation or dissolution is in the best interests of CFC or CB, as the case may be, and its
Subsidiaries and is not materially disadvantageous to the Lenders and (vi) CFC or CB or any
Subsidiary thereof may merge with a Person that is not a wholly-owned Subsidiary thereof
immediately prior to such merger if (A) permitted by Section 6.04 and (B) in the case of any merger
involving CFC or CHL or CB, CFC or CHL or CB, as applicable, is the surviving corporation.

          (b) Each of CFC and CB will not, and will not permit any of its Subsidiaries to, engage to any
material extent in any business other than businesses of the type conducted by it and its
Subsidiaries on the date of execution of this Agreement and businesses reasonably related thereto.

          SECTION 6.04. Acquisitions. Each of CFC and CB will not, and will not permit any of
its Subsidiaries to, purchase, hold or acquire (including pursuant to any merger with any Person
that was not its wholly-owned Subsidiary prior to such merger) all or a majority of the Equity
Interests or voting Equity Interests of any Person that was not a wholly-owned subsidiary prior
thereto, or purchase or otherwise acquire (in one transaction or a series of transactions) all or
substantially all of the assets of any such Person or all or substantially all of the assets of any
such Person constituting a business unit, unless at the time thereof and immediately after giving
effect thereto, no Default or Event of Default with respect to CFC or CB, as the case may be, shall
have occurred and be continuing.

          SECTION 6.05. Restricted Payments. Each of CFC and CB will not, and will not permit
any of its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any
Restricted Payment if at the date of the declaration thereof (either before or immediately after
giving effect thereto and to the payment thereof) a Default or Event of Default with respect to it
or (as applicable) any of its Subsidiaries shall have occurred and be continuing, except (a) CFC or
CB may declare and pay dividends with respect to its Equity Interests payable solely in additional
shares of its common stock and (b) Subsidiaries of CFC (other than CB to the extent such Default or
Event of Default shall have occurred and be continuing with respect to CB) or CB may declare and
pay dividends to CFC or CB, as the case may be, or another wholly-owned Subsidiary of it.

          SECTION 6.06. Indebtedness. Each of CFC and CB will not permit any of its
Subsidiaries (other than CHL and CB) which owns mortgage servicing rights to create, issue, incur,
assume, become liable in respect of or suffer to exist Indebtedness (other than Indebtedness owed
to any other Subsidiary) which, together with Indebtedness (other than Indebtedness owed to any
other Subsidiary) of all other such subsidiaries owning mortgage servicing rights, exceeds
$100,000,000 in aggregate principal amount.

43

 

ARTICLE VII

Events of Default

     If any of the following events (“Events of Default”) shall occur and be continuing:

     (a) a 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 (including
as may result from a notice given pursuant to Section 2.08(d)) or
otherwise;

     (b) a 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 by it under this Agreement or any
of the other Loan Documents, when and as the same shall become due and
payable, and such failure shall continue unremedied until the later of
(i) three Business Days of the date when due and (ii) one Business Day
after the receipt of notice from the Managing Administrative Agent, the
Administrative Agent or any Lender;

     (c) any representation or warranty made or deemed made by or on
behalf of CFC or any of its Subsidiaries, or by or on behalf of CB or
any of its Subsidiaries, in or in connection with this Agreement or any
other Loan Document or any amendment or modification hereof or thereof
or waiver hereunder or thereunder, or in any report, certificate,
financial statement or other document furnished pursuant to or in
connection with this Agreement or any other Loan Document or any
amendment or modification hereof or thereof or waiver hereunder or
thereunder, shall prove to have been inaccurate in any material respect
on or as of the date made or deemed made or furnished;

     (d) CFC or CB shall fail to observe or perform any covenant,
condition or agreement contained in Section 5.02, 5.03 (with respect to
the Borrowers’ existence), 5.10 or 5.11 or in Article VI;

     (e) CFC, CHL or CB shall fail to observe or perform any covenant,
condition or agreement contained in this Agreement or any other Loan
Document (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 Managing Administrative Agent to the
relevant Borrower (which notice will be given at the request of any
Lender);

     (f) CFC, CHL, CB or any of their Subsidiaries shall (i) default in
making any payment of any principal of any Material Indebtedness
(including any Guarantee Obligation, but, solely for purposes of
determining whether there is an Event of Default of CB, excluding the
Material Indebtedness of CFC, CHL or any of their Subsidiaries (other
than CB or any of its Subsidiaries)) on the scheduled or original due
date with respect thereto; or (ii) default in (x) making any payment of
any interest on any such Material Indebtedness beyond the period of
grace, if any, provided in the instrument or agreement under which such
Material Indebtedness was created or (y) the observance or performance
of any other agreement or condition relating to any such Material
Indebtedness or contained in any instrument or agreement evidencing,
securing or relating thereto, or any other event shall occur or
condition exist, the effect of which default or other event or
condition under this clause (ii) is (A) to

44

 

cause such Material Indebtedness to become due prior to its stated
maturity or (in the case of any such Indebtedness constituting a
Guarantee Obligation) to become payable and remain unpaid or (B) to
permit, and to have continuously permitted during a period of at least
30 days, the holder or beneficiary of such Material Indebtedness (or a
trustee or agent on behalf of such holder or beneficiary) to cause,
with the giving of notice if required, such Material Indebtedness to
become due prior to its stated maturity or (in the case of any such
Material Indebtedness constituting a Guarantee Obligation) to become
payable and remain unpaid; provided, that this clause (f) shall
not apply to secured Material Indebtedness that becomes due as a result
of the voluntary sale or transfer of the property or assets securing
such Material Indebtedness; provided, further, that for
purposes of this paragraph (f), Material Indebtedness in respect of
Hedge and Repo Transactions shall be deemed to consist of the Aggregate
Deficit Amount.

     (g) an involuntary proceeding shall be commenced or an involuntary
petition shall be filed seeking (i) liquidation, reorganization or
other relief in respect of CFC, CHL, CB or any of the Material
Subsidiaries or its debts, or of a substantial part of its assets,
under any Federal, state or foreign bankruptcy, insolvency,
receivership or similar law now or hereafter in effect or (ii) the
appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for CFC, CHL, CB or any of the Material
Subsidiaries of CFC or CB, as the case may be, 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;

     (h) CFC, CHL, CB or any of the Material Subsidiaries of CFC or CB,
as the case may be, shall (i) voluntarily commence any proceeding or
file any petition seeking liquidation, reorganization or other relief
under any Federal, state or foreign bankruptcy, insolvency,
receivership or similar law 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
it 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;

     (i) CFC, CHL, CB or any of the Material Subsidiaries of CFC or CB,
as the case may be, shall become unable, admit in writing its inability
or fail generally to pay its debts as they become due;

     (j) one or more judgments for the payment of money in an aggregate
amount in excess of $100,000,000 and not fully covered by insurance
shall be rendered against CFC, CHL, CB or any of their Subsidiaries or
any combination thereof and the same shall remain undischarged for a
period of 60 consecutive days during which execution shall not be
effectively stayed, or any action shall be legally taken by a

45

 

judgment creditor to attach or levy upon any assets of CFC, CHL,
CB or any of their Subsidiaries to enforce any such judgment;

     (k) 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 a Material
Adverse Effect;

     (l) the guarantee contained in Article VIII of this Agreement
shall cease, for any reason, to be in full force and effect or CFC,
CHL, or any Affiliate of CFC or CHL shall so assert;

     (m) CFC shall cease to own, directly or indirectly, 100% of the
outstanding Equity Interests of CHL; or

     (n) 75% of the outstanding Equity Interests of CB shall cease to
be owned by CFC;

then, and in every such event (other than an event described in clause (g) or (h) of this Article)
with respect to CFC (or, as provided for, any Subsidiary of CFC) or with respect to CB (or, as
provided for, any Subsidiary of CB), and at any time thereafter during the continuance of such
event, the Managing Administrative Agent may, and at the request of the Required Lenders shall, by
notice to CFC or CB, as appropriate, take either or both of the following actions, at the same or
different times: (i) terminate the Commitments as they are available to CFC and CHL or to CB, as
the case may be, and thereupon the Commitments to such extent shall terminate immediately, and (ii)
declare the Loans then outstanding to CFC and CHL or to CB, as the case may be, to be due and
payable in whole (or in part, in which case any principal not so declared to be due and payable may
thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared
to be due and payable, together with accrued interest thereon and all fees and other obligations of
CFC and CHL or of CB, as the case may be, accrued hereunder, shall become due and payable
immediately, without presentment, demand, protest or other notice of any kind, all of which are
hereby waived by each Borrower; and in case of any event with respect to CFC or CHL or to CB, as
the case may be, described in clause (g) or (h) of this Article, the Commitments as they are
available to CFC and CHL or to CB, as the case may be, shall automatically terminate and the
principal of the Loans then outstanding to CFC and CHL or to CB, as the case may be, together with
accrued interest thereon and all fees and other obligations of CFC and CHL or of CB, as the case
may be, accrued hereunder, shall automatically become due and payable, without presentment, demand,
protest or other notice of any kind, all of which are hereby waived by the Borrower. For the
avoidance of doubt, it is understood and agreed by the Lenders that an Event of Default with
respect to CFC or any of its Subsidiaries (other than CB or any of its Subsidiaries) shall not
permit or cause a termination of the Commitments as they are available to CB or permit or cause the
Loans outstanding to CB to be declared to or automatically become due and payable. Clause (n)
shall be considered an Event of Default with respect to both CFC and CB.

ARTICLE VIII

Guarantee

          SECTION 8.01. Guarantee. (a) Each of CFC and CHL (each, a “Guarantor”)
hereby unconditionally and irrevocably guarantees to the Managing Administrative Agent, for the
ratable benefit of the Lenders and their respective successors, indorsees, transferees and assigns,
the prompt and complete payment and performance by the other (with respect to such Guarantor, the
“Guaranteed 

46

 

Borrower”) when due (whether at the stated maturity, by acceleration or otherwise) of
the Obligations of the Guaranteed Borrower hereunder (with respect to such Guarantor, the
“Borrower Obligations”).

          (b) Anything herein or in any other Loan Document to the contrary notwithstanding, the maximum
liability of each Guarantor hereunder and under the other Loan Documents shall in no event exceed
the amount which can be guaranteed by such Guarantor under applicable federal and state laws
relating to the insolvency of debtors (after giving effect to the right of contribution established
in Section 8.02).

          (c) Each Guarantor agrees that the Borrower Obligations of its Guaranteed Borrower may at any
time and from time to time exceed the amount of the liability of such Guarantor hereunder without
impairing the guarantee contained in this Article VIII or affecting the rights and remedies of the
Managing Administrative Agent or any Lender hereunder.

          (d) The guarantee contained in this Article VIII shall remain in full force and effect until,
subject to reinstatement pursuant to Section 8.05, all the Borrower Obligations of the relevant
Guaranteed Borrower and the obligations of each Guarantor under the guarantee contained in this
Article VIII shall have been satisfied by payment in full and the Commitments shall be terminated,
notwithstanding that from time to time during the term of this Agreement such Guaranteed Borrower
may be free from any Borrower Obligations.

          (e) No payment made by a Guaranteed Borrower, a Guarantor, any other guarantor or any other
Person or received or collected by the Managing Administrative Agent or any Lender from such
Guaranteed Borrower, such Guarantor, any other guarantor or any other Person by virtue of any
action or proceeding or any set-off or appropriation or application at any time or from time to
time in reduction of or in payment of the Borrower Obligations of such Guaranteed Borrower shall be
deemed to modify, reduce, release or otherwise affect the liability of the relevant Guarantor
hereunder which shall, notwithstanding any such payment (other than any payment made by such
Guarantor in respect of the Borrower Obligations of the relevant Guaranteed Borrower or any payment
received or collected from such Guarantor in respect of such Borrower Obligations), remain liable
for the Borrower Obligations of such Guaranteed Borrower up to the maximum liability of such
Guarantor hereunder until, subject to reinstatement pursuant to Section 8.05, the Borrower
Obligations are paid in full and the Commitments are terminated.

          SECTION 8.02. No Subrogation. Notwithstanding any payment made by a Guarantor
hereunder or any set-off or application of funds of such Guarantor by the Managing Administrative
Agent or any Lender, such Guarantor shall not be entitled to be subrogated to any of the rights of
the Managing Administrative Agent or any Lender against the Guaranteed Borrower with respect to it
or any guarantee or right of offset held by the Managing Administrative Agent or any Lender for the
payment of the Borrower Obligations of such Guaranteed Borrower, nor shall such Guarantor seek or
be entitled to seek any contribution or reimbursement from such Guaranteed Borrower in respect of
payments made by such Guarantor hereunder, until all amounts owing to the Managing Administrative
Agent and the Lenders on account of the Borrower Obligations of such Guaranteed Borrower are
indefeasibly paid in full and the Commitments are terminated. If any amount shall be paid to such
Guarantor on account of such subrogation rights at any time when all of the Borrower Obligations of
such Guaranteed Borrower shall not have been indefeasibly paid in full, such amount shall be held
by such Guarantor in trust for the Managing Administrative Agent and the Lenders, segregated from
other funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over
to the Managing Administrative Agent in the exact form received by such Guarantor (duly indorsed by
such Guarantor to the Managing Administrative Agent, if required), to be applied against the
Borrower Obligations of such Guaranteed

47

 

Borrower, whether matured or unmatured, in such order as the Managing Administrative Agent may
determine.

          SECTION 8.03. Amendments, etc. with respect to the Borrower Obligations. Each
Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights
against it and without notice to or further assent by it, any demand for payment of any of the
Borrower Obligations of the Guaranteed Borrower with respect to it made by the Managing
Administrative Agent or any Lender may be rescinded by the Managing Administrative Agent or such
Lender and any of such Borrower Obligations continued, and such Borrower Obligations, or the
liability of any other Person upon or for any part thereof, or any guarantee therefor or right of
offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended,
amended, modified, accelerated, compromised, waived, surrendered or released by the Managing
Administrative Agent or any Lender, and this Agreement and the other Loan Documents and any other
documents executed and delivered in connection therewith may be amended, modified, supplemented or
terminated, in whole or in part, as the Managing Administrative Agent (or the Required Lenders or
all Lenders, as the case may be) may deem advisable from time to time, and any guarantee or right
of offset at any time held by the Managing Administrative Agent or any Lender for the payment of
such Borrower Obligations may be sold, exchanged, waived, surrendered or released.

          SECTION 8.04. Guarantee Absolute and Unconditional. Each Guarantor waives any and all
notice of the creation, renewal, extension or accrual of any of the Borrower Obligations of the
Guaranteed Borrower with respect to it and notice of or proof of reliance by the Managing
Administrative Agent or any Lender upon the guarantee contained in this Article VIII or acceptance
of the guarantee contained in this Article VIII; such Borrower Obligations, and any of them, shall
conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended
or waived, in reliance upon the guarantee contained in this Article VIII; and all dealings between
such Guarantor and such Guaranteed Borrower, on the one hand, and the Managing Administrative Agent
and the Lenders, on the other hand, likewise shall be conclusively presumed to have been had or
consummated in reliance upon the guarantee contained in this Article VIII. Each Guarantor waives
diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon
the Guaranteed Borrower with respect to it or such Guarantor with respect to the Borrower
Obligations of such Guaranteed Borrower. Each Guarantor understands and agrees that the guarantee
contained in this Article VIII shall be construed as a continuing, absolute and unconditional
guarantee of payment without regard to (a) the validity or enforceability of this Agreement or any
other Loan Document, any of the Borrower Obligations of the Guaranteed Borrower with respect to it
or any other collateral security therefor or guarantee or right of offset with respect thereto at
any time or from time to time held by the Managing Administrative Agent or any Lender, (b) any
defense, set-off or counterclaim (other than a defense of payment or performance) which may at any
time be available to or be asserted by such Guaranteed Borrower or any other Person against the
Managing Administrative Agent or any Lender, (c) any change in the corporate existence, structure
or ownership of such Guaranteed Borrower, or any insolvency, bankruptcy, reorganization or other
similar proceeding affecting such Guaranteed Borrower or its assets or any resulting release or
discharge of any such Borrower Obligation, (d) any law, regulation or order of any jurisdiction, or
any other event, affecting any term of any such Borrower Obligation or any Lender’s rights with
respect thereto or (e) any other circumstance whatsoever (with or without notice to or knowledge of
it) which constitutes, or might be construed to constitute, an equitable or legal discharge of such
Guaranteed Borrower for such Borrower Obligations, or of such Guarantor under the guarantee
contained in this Article VIII, in bankruptcy or in any other instance. When making any demand
hereunder or otherwise pursuing its rights and remedies hereunder against a Guarantor, the Managing
Administrative Agent or any Lender may, but shall be under no obligation to, make a similar demand
on or otherwise pursue such rights and remedies as it may have against any other Person or against
any other guarantee for the Borrower Obligations of the Guaranteed Borrower with respect to such
Guarantor or any right of offset

48

 

with respect thereto, and any failure by the Managing Administrative Agent or any Lender to
make any such demand, to pursue such other rights or remedies or to collect any payments from any
other Person or to realize upon any such guarantee or to exercise any such right of offset, or any
release of any other Person or any such guarantee or right of offset, shall not relieve such
Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights and
remedies, whether express, implied or available as a matter of law, of the Managing Administrative
Agent or any Lender against such Guarantor. For the purposes hereof “demand” shall include the
commencement and continuance of any legal proceedings.

          SECTION 8.05. Reinstatement. The guarantee contained in this Article VIII shall
continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part
thereof, of any of the Borrower Obligations of a Guaranteed Borrower is rescinded or must otherwise
be restored or returned by the Managing Administrative Agent or any Lender upon the insolvency,
bankruptcy, dissolution, liquidation or reorganization of such Guaranteed Borrower, or upon or as a
result of the appointment of a receiver, intervenor or conservator of, or trustee or similar
officer for, such Guaranteed Borrower or any substantial part of its property, or otherwise, all as
though such payments had not been made.

          SECTION 8.06. Payments. Each Guarantor hereby guarantees that payments hereunder will
be paid to the Managing Administrative Agent without set-off or counterclaim in Dollars at the
office of the Managing Administrative Agent specified in Section 2.17.

          SECTION 8.07. Independent Obligations. The obligations of a Guarantor under the
guarantee contained in this Article VIII are independent of the obligations of the Guaranteed
Borrower with respect to it, and a separate action or actions may be brought and prosecuted against
such Guarantor whether or not such Guaranteed Borrower is joined in any such action or actions.
Each Guarantor waives, to the fullest extent permitted by law, the benefit of any statute of
limitations affecting its liability hereunder or the enforcement thereof.

ARTICLE IX

The Agents

          SECTION 9.01. Appointment. Each Lender hereby irrevocably designates and appoints the
Managing Administrative Agent as the agent of such Lender under this Agreement and the other Loan
Documents, and each Lender irrevocably authorizes the Managing Administrative Agent, in such
capacity, to take such action on its behalf under the provisions of this Agreement and the other
Loan Documents and to exercise such powers and perform such duties as are expressly delegated to
the Managing Administrative Agent by the terms of this Agreement and the other Loan Documents,
together with such other powers as are reasonably incidental thereto. Notwithstanding any
provision to the contrary elsewhere in this Agreement, the Managing Administrative Agent shall not
have any duties or responsibilities, except those expressly set forth herein, or any fiduciary
relationship with any Lender, 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 Managing Administrative Agent.

          SECTION 9.02. Delegation of Duties. The Managing Administrative Agent may execute any
of its duties under this Agreement and the other Loan Documents by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to
such duties. The Managing Administrative Agent shall not be responsible for the negligence or
misconduct of any agents or attorneys-in-fact selected by it with reasonable care.

49

 

          SECTION 9.03. Exculpatory Provisions. Neither any Agent nor any of its respective
officers, directors, employees, agents, attorneys-in-fact or affiliates shall be (i) liable for any
action lawfully taken or omitted to be taken by it or such Person under or in connection with this
Agreement or any other Loan Document (except to the extent that any of the foregoing are found by a
final and nonappealable decision of a court of competent jurisdiction to have resulted from its or
such Person’s own gross negligence or willful misconduct) or (ii) responsible in any manner to any
of the Lenders for any recitals, statements, representations or warranties made by any of CFC, CHL,
CB or their Subsidiaries or any officer thereof contained in this Agreement or any other Loan
Document or in any certificate, report, statement or other document referred to or provided for in,
or received by the Agents under or in connection with, this Agreement or any other Loan Document or
for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement or any other Loan Document or for any failure of any of CFC, CHL, CB or their
Subsidiaries to perform its obligations hereunder or thereunder. The Agents shall not be under any
obligation to any Lender 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 of CFC, CHL, CB or their Subsidiaries.

          SECTION 9.04. Reliance by Managing Administrative Agent. The Managing Administrative
Agent shall be entitled to rely, and shall be fully protected in relying, upon any instrument,
writing, resolution, notice, consent, certificate, affidavit, letter, telecopy, telex or teletype
message, statement, order 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 the Borrower), independent accountants and other
experts selected by the Managing Administrative Agent. The Managing Administrative Agent may deem
and treat the payee of any Note as the owner thereof for all purposes unless a written notice of
assignment, negotiation or transfer thereof shall have been filed with the Managing Administrative
Agent. The Managing Administrative Agent shall be fully justified in failing or refusing to take
any action under this Agreement or any other Loan Document unless it shall first receive such
advice or concurrence of the Required Lenders (or, if so specified by this Agreement, all Lenders)
as it deems appropriate or it shall first be indemnified to its satisfaction by the Lenders against
any and all liability and expense that may be incurred by it by reason of taking or continuing to
take any such action (other than any liability or expense which is found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted from its gross
negligence or willful misconduct). The Managing Administrative Agent shall in all cases be fully
protected in acting, or in refraining from acting, under this Agreement and the other Loan
Documents in accordance with a request of the Required Lenders (or, if so specified by this
Agreement, all Lenders), and such request and any action taken or failure to act pursuant thereto
shall be binding upon all the Lenders and all future holders of the Loans.

          SECTION 9.05. Notice of Default. The Managing Administrative Agent shall not be
deemed to have knowledge or notice of the occurrence of any Default or Event of Default unless the
Managing Administrative Agent has received notice from a Lender or the Borrowers referring to this
Agreement, describing such Default or Event of Default and stating that such notice is a “notice of
default”. In the event that the Managing Administrative Agent receives such a notice, the Managing
Administrative Agent shall give notice thereof to the Lenders. The Managing Administrative Agent
shall take such action with respect to such Default or Event of Default as shall be reasonably
directed by the Required Lenders (or, if so specified by this Agreement, all Lenders);
provided that unless and until the Managing Administrative Agent shall have received such
directions, the Managing Administrative Agent may (but shall not be obligated to) take such action,
or refrain from taking such action, with respect to such Default or Event of Default as it shall
deem advisable in the best interests of the Lenders.

          SECTION 9.06. Non-Reliance on Agents and Other Lenders. Each Lender expressly
acknowledges that neither the Agents nor any of their respective officers, directors, employees,
agents,

50

 

attorneys-in-fact or affiliates has made any representations or warranties to it and that no
act by any Agent hereafter taken, including any review of the affairs of CFC, CHL, CB or their
Subsidiaries or any affiliate of CFC, CHL, CB or their Subsidiaries, shall be deemed to constitute
any representation or warranty by any Agent to any Lender. Each Lender represents to the Agents
that it has, independently and without reliance upon any Agent or any other Lender, and based on
such documents and information as it has deemed appropriate, made its own appraisal of and
investigation into the business, operations, property, financial and other condition and
creditworthiness of CFC, CHL, CB or their Subsidiaries and their affiliates and made its own
decision to make its Loans hereunder and enter into this Agreement. Each Lender also represents
that it will, independently and without reliance upon any Agent or any other Lender, 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 Documents, and to make such investigation as it deems necessary to inform itself as
to the business, operations, property, financial and other condition and creditworthiness of CFC,
CHL, CB and their Subsidiaries and the affiliates of CFC, CHL, CB and their Subsidiaries. Except
for notices, reports and other documents expressly required to be furnished to the Lenders by the
Managing Administrative Agent hereunder, the Managing Administrative Agent shall not have any duty
or responsibility to provide any Lender with any credit or other information concerning the
business, operations, property, condition (financial or otherwise), prospects or creditworthiness
of CFC, CHL, CB and their Subsidiaries or any affiliate of CFC, CHL, CB and their Subsidiaries that
may come into the possession of the Managing Administrative Agent or any of its officers,
directors, employees, agents, attorneys-in-fact or affiliates.

          SECTION 9.07. Indemnification. The Lenders agree to indemnify each Agent in its
capacity as such (to the extent not reimbursed by the Borrowers and without limiting the obligation
of the Borrowers to do so), ratably according to their respective Aggregate Exposure Percentages in
effect on the date on which indemnification is sought under this Section (or, if indemnification is
sought after the date upon which the Commitments shall have terminated and the Loans shall have
been paid in full, ratably in accordance with such Aggregate Exposure Percentages immediately prior
to such date), from and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any
time (whether before or after the payment of the Loans) be imposed on, incurred by or asserted
against such Agent in any way relating to or arising out of, the Commitments, this Agreement, any
of the other Loan Documents or any documents contemplated by or referred to herein or therein or
the transactions contemplated hereby or thereby or any action taken or omitted by such Agent under
or in connection with any of the foregoing; provided that no Lender shall be liable for the
payment of any portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements that are found by a final and nonappealable
decision of a court of competent jurisdiction to have resulted from such Agent’s gross negligence
or willful misconduct. The agreements in this Section shall survive the payment of the Loans and
all other amounts payable hereunder.

          SECTION 9.08. Agent in Its Individual Capacity. Each Agent and its affiliates may
make loans to, accept deposits from and generally engage in any kind of business with CFC, CHL, CB
and their Subsidiaries as though such Agent were not an Agent. With respect to its Loans made or
renewed by it, each Agent shall have the same rights and powers under this Agreement and the other
Loan Documents as any Lender and may exercise the same as though it were not an Agent, and the
terms “Lender” and “Lenders” shall include each Agent in its individual capacity.

          SECTION 9.09. Successor Managing Administrative Agent. The Managing Administrative
Agent may resign as Managing Administrative Agent upon 10 days’ notice to the Lenders and the
Borrower. If the Managing Administrative Agent shall resign as Managing Administrative Agent under
this Agreement and the other Loan Documents, then the Required Lenders shall appoint from

51

 

among the Lenders a successor agent for the Lenders, which successor agent shall (unless an
Event of Default under Article VII(a), VII(b), VII(g) or VII(h) with respect to the Borrowers shall
have occurred and be continuing) be subject to approval by the Borrower (which approval shall not
be unreasonably withheld or delayed), whereupon such successor agent shall succeed to the rights,
powers and duties of the Managing Administrative Agent, and the term “Managing Administrative
Agent” shall mean such successor agent effective upon such appointment and approval, and the former
Managing Administrative Agent’s rights, powers and duties as Managing Administrative Agent shall be
terminated, without any other or further act or deed on the part of such former Managing
Administrative Agent or any of the parties to this Agreement or any holders of the Loans. If no
successor agent has accepted appointment as Managing Administrative Agent by the date that is 10
days following a retiring Managing Administrative Agent’s notice of resignation, the retiring
Managing Administrative Agent’s resignation shall nevertheless thereupon become effective, and the
Lenders shall assume and perform all of the duties of the Managing Administrative Agent hereunder
until such time, if any, as the Required Lenders appoint a successor agent as provided for above.
After any retiring Managing Administrative Agent’s resignation as Managing Administrative Agent,
the provisions of this Article IX shall inure to its benefit as to any actions taken or omitted to
be taken by it while it was Managing Administrative Agent under this Agreement and the other Loan
Documents.

          SECTION 9.10. Documentation Agent, Syndication Agent and Administrative Agent. None
of the Documentation Agent, the Syndication Agent or the Administrative Agent shall have any duties
or responsibilities hereunder in their capacities as such.

ARTICLE X

Miscellaneous

          SECTION 10.01. Notices. (a) Except in the case of notices and other communications
expressly permitted to be given by telephone (and subject to paragraph (b) below), all notices and
other communications provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows:

     (i) if to CFC or CHL, to it at 4500 Park Granada, Calabasas, California 91302,
Attention of Chief Financial Officer (Telecopy No. (818) 225-4196), with a copy to the
attention of its Chief Legal Officer (Telecopy No. (818) 225-4055) at the same address;

     (ii) if to CB, to it at 225 West Hillcrest Drive, Thousand Oaks, California 91360,
Attention of Chief Financial Officer (Telecopy No. (805) 371-6416, with a copy to the
attention of its Corporate Secretary (Telecopy No. (805) 371-6417 at the same address;

     (iii) if to the Managing Administrative Agent, to Barclays Bank PLC., 200 Cedar Knolls
Road, Whippany, New Jersey 07981, Attention: May Wong (Telecopy No. (973) 576-3014, with a
copy to Barclays Bank PLC, 200 Park Avenue, New York, New York 10166, Attention: Trish
Calabro (Telecopy No. (212) 412-7600; and

     (iv) if to any Swingline Lender or any other Lender, to it at its address (or telecopy
number) set forth in its Administrative Questionnaire.

          (b) Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Managing Administrative Agent;
provided that the foregoing shall not apply to notices pursuant to Article II unless otherwise
agreed by the Managing Administrative Agent and the applicable Lender. The Managing

52

 

Administrative Agent or the 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) Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and other
communications given to any party hereto in accordance with the provisions of this Agreement shall
be deemed to have been given on the date of receipt.

          SECTION 10.02. Waivers; Amendments. (a) No failure or delay by the Managing
Administrative Agent or any Lender in exercising any right or power hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The rights and remedies of
the Managing Administrative Agent and the Lenders hereunder are cumulative and are not exclusive of
any rights or remedies that they would otherwise have. No waiver of any provision of this
Agreement or consent to any departure by a Borrower therefrom shall in any event be effective
unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or
consent shall be effective only in the specific instance and for the purpose for which given.
Without limiting the generality of the foregoing, the making of a Loan shall not be construed as a
waiver of any Default or Event of Default, regardless of whether the Managing Administrative Agent
or any Lender may have had notice or knowledge of such Default or Event of Default at the time.

          (b) Neither this Agreement nor any other Loan Document nor any provision hereof or thereof may
be waived, amended or modified (other than amendments and modifications made for the sole purpose
of giving effect to any increase in Commitments pursuant to Section 2.01(b) or made to Schedule
2.05 as contemplated by the definition of “Swingline Lender” in Section 1.01) except pursuant to an
agreement or agreements in writing entered into by the Borrowers and the Required Lenders or by the
Borrowers and the Managing Administrative Agent with the consent of the Required Lenders;
provided that no such agreement shall (i) increase the Commitment of any Lender without the
written consent of such Lender, (ii) reduce the principal amount of any Loan or reduce the rate of
interest thereon, or reduce any fees payable hereunder, without the written consent of each Lender
affected thereby, (iii) postpone the scheduled date of payment of the principal amount of any Loan
(other than in accordance with Section 2.09) or any interest thereon, or any fees payable
hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled
date of expiration of any Commitment, without the written consent of each Lender affected thereby,
(iv) change Section 2.17 in a manner that would alter the pro rata sharing of payments required
thereby, without the written consent of each Lender, (v) release any Guarantor from its obligations
set forth in Article VIII without the written consent of each Lender, or (vi) change any of the
provisions of this Section or the definition of “Required Lenders” or any other provision hereof
specifying the number or percentage of Lenders required to waive, amend or modify any rights
hereunder or make any determination or grant any consent hereunder, without the written consent of
each Lender; provided further that no such agreement shall amend, modify or
otherwise affect the rights or duties of the Managing Administrative Agent or any Swingline Lender
hereunder without the prior written consent of the Managing Administrative Agent or such Swingline
Lender, as the case may be.

          SECTION 10.03. Expenses; Indemnity; Damage Waiver. (a) CFC and CHL shall pay (i) all
reasonable out-of-pocket expenses incurred by the Managing Administrative Agent, the Administrative
Agent and their respective Affiliates, including the reasonable fees, charges and disbursements of
counsel for the Managing Administrative Agent and the Administrative Agent, in connection with the
syndication of the credit facilities provided for herein, the preparation and

53

 

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 Managing Administrative Agent, the Administrative
Agent or any Lender, including the fees, charges and disbursements of any counsel for the Managing
Administrative Agent, the Administrative Agent or any Lender, in connection with the enforcement or
protection of its rights in connection with this Agreement and the other Loan Documents, including
its rights under this Section, or in connection with the Loans made hereunder, including all such
out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of
such Loans.

          (b) CFC and CHL (or, to the extent provided below, CB) shall indemnify the Managing
Administrative Agent, the Agents and each Lender, and each Related Party of any of the foregoing
Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee
harmless from, any and all losses, claims, damages, liabilities and related expenses, including the
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 execution or delivery
of this Agreement or any agreement or instrument contemplated hereby, the performance by the
parties hereto of their respective obligations hereunder or the consummation of the Transactions or
any other transactions contemplated hereby, (ii) any Loan or the use of the proceeds thereof, (iii)
any actual or alleged presence or release of Hazardous Materials on or from any property owned or
operated by any Borrower or any of its subsidiaries, or any Environmental Liability related in any
way to any Borrower or any of its subsidiaries, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto;
provided that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Indemnitee. It is understood that (i) the indemnification
obligations under this Section 10.03(b) to the extent they may reasonably be attributable to the
acts or omissions hereunder by CB or any of its Subsidiaries shall be the responsibility of CB and
not CFC and CHL, and (ii) the indemnification obligations under this Section 10.03(b) to the extent
they may reasonably not be attributable to the acts or omissions hereunder by CB or any of its
Subsidiaries shall be the responsibility of CFC and CHL and not CB.

          (c) To the extent that any Borrower fails to pay any amount required to be paid by it to any
Swingline Lender under paragraph (a) or (b) of this Section, each Lender severally agrees to pay to
the applicable Swingline Lender such Lender’s Applicable Percentage (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 applicable Swingline
Lender in its capacity as such. To the extent that CFC or CHL fails to pay any amount required to
be paid by it to the Managing Administrative Agent or the Administrative Agent under paragraph (a)
or (b) of this Section, each Lender severally agrees to pay the Managing Administrative Agent or
Administrative Agent in accordance with Section 9.07.

          (d) To the extent permitted by applicable law, each Borrower shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as 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 or the use of the proceeds thereof.

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

54

 

          SECTION 10.04. 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 (i) a Borrower may not assign or otherwise transfer any of
its rights or obligations hereunder or under any of the other Loan Documents without the prior
written consent of each Lender (and any attempted assignment or transfer by a Borrower without such
consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or
obligations hereunder except in accordance with this Section. 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
paragraph (c) of this Section) and, to the extent expressly contemplated hereby, the Related
Parties of each of the Managing Administrative Agent, the Administrative Agent and the Lenders) any
legal or equitable right, remedy or claim under or by reason of this Agreement.

          (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign
to one or more assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans at the time owing to it) with the prior
written consent (such consent not to be unreasonably withheld) of:

          (A) CFC, provided that no consent of CFC shall be required for an assignment to
a Lender, an Affiliate of a Lender or, if an Event of Default has occurred and is
continuing, any other assignee; and

          (B) the Managing Administrative Agent and each Swingline Lender, provided that
no consent of the Managing Administrative Agent or any Swingline Lender shall be required
for an assignment of any Commitment to an assignee that is a Lender with a Commitment
immediately prior to giving effect to such assignment.

          (ii) Assignments shall be subject to the following additional conditions:

          (A) except in the case of an assignment to a Lender or an Affiliate of a Lender or an
assignment of the entire remaining amount of the assigning Lender’s Commitment or Loans of
any Class, the amount of the Commitment or Loans of the assigning Lender subject to each
such assignment (determined as of the date the Assignment and Assumption with respect to
such assignment is delivered to the Managing Administrative Agent) shall not be less than
$10,000,000 unless each of CFC and the Managing Administrative Agent otherwise consent,
provided that no such consent of CFC shall be required if an Event of Default under
Article VII has occurred and is continuing;

          (B) each partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement, provided
that this clause shall not be construed to prohibit the assignment of a proportionate part
of all the assigning Lender’s rights and obligations in respect of Competitive Loans;

          (C) the parties to each assignment shall execute and deliver to the Managing
Administrative Agent an Assignment and Assumption, together with a processing and
recordation fee of $3,500; and

          (D) the assignee, if it shall not be a Lender, shall deliver to the Managing
Administrative Agent an Administrative Questionnaire.

55

 

          (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this
Section, from and after the effective date specified in each Assignment and Assumption the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment
and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such Assignment and 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 2.14, 2.15, 2.16 and 10.03). Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this Section 10.04 shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (c) of this Section.

          (iv) The Managing Administrative Agent, acting for this purpose as an agent of each Borrower,
shall maintain at one of its offices 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 Commitment of, and
principal amount of the Loans owing to, each Lender pursuant to the terms hereof from time to time
(the “Register”). The entries in the Register shall be conclusive, and the Borrowers, the
Managing Administrative Agent, the Administrative Agent and the Lenders may treat each Person whose
name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all
purposes of this
Agreement, notwithstanding notice to the contrary. The Register shall be available for
inspection by any Borrower and any Lender, at any reasonable time and from time to time upon
reasonable prior notice.

          (v) Upon its receipt of a duly completed Assignment and Assumption executed by an assigning
Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee
shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph
(b)(ii)(C) of this Section and any written consent to such assignment required by paragraph (b)(i)
of this Section, the Managing Administrative Agent shall accept such Assignment and Assumption and
record the information contained therein in the Register. No assignment shall be effective for
purposes of this Agreement unless it has been recorded in the Register as provided in this
paragraph.

          (c) (i) Any Lender may, without the consent of the Borrowers, the Managing Administrative
Agent, the Administrative Agent or the Swingline Lenders, sell participations to one or more banks
or other entities (a “Participant”) in all or a portion of such Lender’s rights and
obligations under this Agreement (including all or a portion of its Commitment and the Loans owing
to it); provided that (A) such Lender’s obligations under this Agreement shall remain
unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (C) the Borrowers, the Managing 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 any
provision of this Agreement; provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any amendment, modification
or waiver described in the first proviso to Section 10.02(b) that affects such Participant.
Subject to paragraph (c)(ii) of this Section, each Borrower agrees that each Participant shall be
entitled to the benefits of Sections 2.14, 2.15 and 2.16 to the same extent as if it were a Lender
and had acquired its interest by assignment pursuant to paragraph (b) of this Section. To the
extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.08
as though it were a Lender, provided such Participant agrees to be subject to Section 2.17(b) as
though it were a Lender.

          (ii) A Participant shall not be entitled to receive any greater payment under Section 2.14 or
2.16 than the applicable Lender would have been entitled to receive with respect to the

56

 

participation sold to such Participant, unless the sale of the participation to such Participant is
made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 2.16 unless each Borrower is
notified of the participation sold to such Participant and such Participant agrees, for the benefit
of any such Borrower, to comply with Section 2.16(e) as though it were a Lender.

          (d) Any Lender may at any time pledge, assign or grant a security interest in all or any
portion of its rights under this Agreement to secure obligations of such Lender, including without
limitation any pledge, assignment or grant to secure obligations to a Federal Reserve Bank, and
this Section shall not apply to any such pledge, assignment or grant of a security interest;
provided that no such pledge, assignment or grant of a security interest shall release a
Lender from any of its obligations hereunder or substitute any such pledge, assignee or grantee for
such Lender as a party hereto.

          SECTION 10.05. Survival. All covenants, agreements, representations and warranties
made by each Borrower herein and in the certificates or other instruments delivered in connection
with or pursuant to this Agreement shall be considered to have been relied upon by the other
parties hereto and shall survive the execution and delivery of this Agreement and the making of any
Loans to it or to any Borrower
guaranteed by it, regardless of any investigation made by any such other party or on its
behalf and notwithstanding that the Managing Administrative Agent or any Lender may have had notice
or knowledge of any Default or Event of Default or incorrect representation or warranty at the time
any credit is extended hereunder, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any fee or any other amount payable under this
Agreement is outstanding and unpaid and so long as the Commitments have not expired or terminated.
The provisions of Sections 2.14, 2.15, 2.16, 9.03 and 10.03 and Article VIII shall survive and
remain in full force and effect regardless of the consummation of the transactions contemplated
hereby, the repayment of the Loans, the expiration or termination of the Commitments or the
termination of this Agreement or any provision hereof.

          SECTION 10.06. Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single
contract. This Agreement and any separate letter agreements with respect to fees payable to the
Managing Administrative Agent constitute the entire contract among the parties relating to the
subject matter hereof and supersede any and all previous agreements and understandings, oral or
written, relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement
shall become effective when it shall have been executed by the Managing Administrative Agent and
when the Managing Administrative Agent shall have received counterparts hereof which, when taken
together, bear the signatures of each of the other parties hereto, and thereafter shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and assigns.
Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be
effective as delivery of a manually executed counterpart of this Agreement.

          SECTION 10.07. Severability. Any provision of this Agreement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such invalidity, illegality or unenforceability without affecting the validity, legality
and enforceability of the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

          SECTION 10.08. Right of Setoff. If an Event of Default with respect to a Borrower
shall have occurred and be continuing, each Lender and each of its Affiliates is hereby authorized
at any time and from time to time, to the fullest extent permitted by law, to set off and apply any
and all deposits

57

 

(general or special, time or demand, provisional or final) at any time held and
other obligations at any time owing by such Lender or Affiliate to or for the credit or the account
of such Borrower and any Guarantor thereof against any of and all the obligations of such Borrower
or such Guarantor now or hereafter existing under this Agreement held by such Lender, irrespective
of whether or not such Lender shall have made any demand under this Agreement and although such
obligations may be unmatured. The rights of each Lender under this Section are in addition to
other rights and remedies (including other rights of setoff) which such Lender may have.

          SECTION 10.09. Governing Law; Jurisdiction; Consent to Service of Process. (a) This
Agreement shall be construed in accordance with and governed by the law of the State of New York.

          (b) Each Borrower hereby irrevocably and unconditionally submits, for itself and its property,
to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York
County and of the United States District Court of the Southern District of New York, and any
appellate court from any thereof, in any action or proceeding arising out of or relating to this
Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby
irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding
may be heard and determined in such New York State or, to the extent permitted by law, in such
Federal court. Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Agreement shall affect any right that the
Managing Administrative Agent or any Lender may otherwise have to bring any action or proceeding
relating to this Agreement against any Borrower or its properties in the courts of any
jurisdiction.

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

          (d) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 10.01. Nothing in this Agreement will affect the right of any
party to this Agreement to serve process in any other manner permitted by law.

          SECTION 10.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

          SECTION 10.11. Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this Agreement.

58

 

          SECTION 10.12. Confidentiality. Each of the Managing 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 and its Affiliates’ directors, officers, employees and
agents, including accountants, legal counsel and other advisors (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 or self-regulatory authority, (c) to the extent
required by applicable laws or regulations (including the regulations of any self-regulatory
organization) or by any subpoena or similar legal process, (d) to any other party to this
Agreement, (e) in connection with the exercise of any remedies hereunder or any suit, action or
proceeding relating to this Agreement or the enforcement of rights hereunder, (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 Agreement or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to the Borrower and their obligations, (g)
with the consent of the Borrowers or the relevant Borrower or (h) to the extent such Information
(i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes
available to the Managing Administrative Agent or any Lender on a nonconfidential basis from a
source other than a Borrower. For the purposes of this Section, “Information” means all
information received from any Borrower, in connection with the negotiation of or pursuant to this
Agreement, relating to any Borrower or its business, other than any such information that is
available to the Managing Administrative Agent or any Lender on a nonconfidential basis prior to
disclosure by the Borrowers; provided that, in the case of information received from a
Borrower 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.

     SECTION 10.13. USA PATRIOT Act. Each Lender hereby notifies each Borrower 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 such Borrower, which information includes the name and address of such Borrower and
other information that will allow such Lender to identify such Borrower in accordance with the Act.

59

 

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

	 	 	 	 	 	 	 
	 	 	COUNTRYWIDE FINANCIAL CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Jennifer Sandefur
	 	 
	 

	 	 	 	Name: Jennifer Sandefur	 	 
	 

	 	 	 	Title: Senior Managing Director & Treasurer	 	 

	 	 	 	 	 	 	 
	 	 	COUNTRYWIDE HOME LOANS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Brad Coburn
	 	 
	 

	 	 	 	Name: Brad Coburn	 	 
	 

	 	 	 	Title: Managing Director	 	 

Signature page — 364-Day Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	COUNTRYWIDE BANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Craig Naselow
	 	 
	 

	 	 	 	Name: Craig Naselow	 	 
	 

	 	 	 	Title: MD, Treasurer	 	 

Signature page — 364-Day Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	BARCLAYS BANK PLC,	 	 
	 	 	as Managing Administrative Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Alison A. McGuigan	 	 
	 

	 	 	 	Name: Alison A. McGuigan	 	 
	 

	 	 	 	Title: Associate Director	 	 

Signature page — 364-Day Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	BNP PARIBAS,	 	 
	 	 	as Administrative Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Pierre Nicholas Rogers
 

Name: Pierre Nicholas Rogers
	 	 
	 

	 	 	 	Title: Managing Director	 	 

	 	 	 	 	 	 	 
	 

	 	By
	 	/s/ Katherine Wolfe
 

Name: Katherine Wolfe
	 	 
	 

	 	 	 	Title: Managing Director	 	 

Signature page — 364-Day Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	SOCIÉTÉ
GÉNÉRALE,	 	 
	 	 	as Documentation Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ William Aishton
 

Name: William Aishton
	 	 
	 

	 	 	 	Title: Vice President	 	 

Signature page — 364-Day Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	ROYAL BANK OF CANADA,	 	 
	 	 	as Syndication Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Howard Lee
	 	 
	 

	 	 	 	Name: Howard Lee	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

Signature page — 364-Day Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	MERRILL LYNCH BANK USA,	 	 
	 	 	as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Preston L. Jackson
	 	 
	 

	 	 	 	Name: Preston L. Jackson	 	 
	 

	 	 	 	Title: President	 	 

Signature page — 364-Day Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NOVA SCOTIA,	 	 
	 	 	as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ John Morale
	 	 
	 

	 	 	 	Name: John Morale	 	 
	 

	 	 	 	Title: Industry Head	 	 

Signature page — 364-Day Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	BAYERISCHE LANDESBANK, New York Branch	 	 
	 	 	as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Joseph C. Campagna
 

Name: Joseph C. Campagna
	 	 
	 

	 	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Donna M. Quilty	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Donna M. Quilty	 	 
	 

	 	 	 	Title: Vice President	 	 

Signature page — 364-Day Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	COMMONWEALTH BANK OF AUSTRALIA,	 	 
	 	 	as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Jeff Heazlewood
	 	 
	 

	 	 	 	Name: Jeff Heazlewood	 	 
	 

	 	 	 	Title: Relationship Executive	 	 

Signature page — 364-Day Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	DRESDNER BANK AG, NEW YORK AND GRAND	 	 
	 	 	CAYMAN BRANCHES,	 	 
	 	 	as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Mark van der Griend
	 	 
	 

	 	 	 	Name: Mark van der Griend	 	 
	 

	 	 	 	Title: Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Brian Haughney	 	 
	 

	 	 	 	Name: Brian Haughney
	 	 
	 

	 	 	 	Title: Director	 	 

Signature page — 364-Day Credit Agreement

 

 

	 	 	 	 	 
	 	 	BAYERISCHE HYPO-UND VEREINSBANK AG,
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By
	 	/s/ Isabel Nunz
	 

	 	 	 	Name: Isabel Nunz
	 

	 	 	 	Title: Director
	 
	 	 	 	 
	 

	 	By
	 	/s/ Joel J. Sahli
	 

	 	 	 	Name: Joel J. Sahli
	 

	 	 	 	Title: Associate Director

Signature page — 364-Day Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	MIZUHO CORPORATE BANK, LTD.,	 	 
	 	 	as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Takahiko Ueda	 	 
	 

	 	 	 	Name: Takahiko Ueda
	 	 
	 

	 	 	 	Title: Deputy General Manager	 	 

Signature page — 364-Day Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	SANPAOLO IMI S.p.A.,	 	 
	 	 	as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Joshua Koenig	 	 
	 

	 	 	 	Name: Joshua Koenig
	 	 
	 

	 	 	 	Title: V.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Renato Carducci	 	 
	 

	 	 	 	Name: Renato Carducci
	 	 
	 

	 	 	 	Title: General Manager	 	 

Signature page — 364-Day Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	TORONTO DOMINION (TEXAS) LLC,	 	 
	 	 	as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Debbi Brito	 	 
	 

	 	 	 	Name: Debbi Brito
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

Signature page — 364-Day Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	WESTPAC BANKING CORPORATION,	 	 
	 	 	as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Isaac Rankin	 	 
	 

	 	 	 	Name: Isaac Rankin
	 	 
	 

	 	 	 	Title: Head of Corporate & Institutional
Banking	 	 

Signature page — 364-Day Credit Agreement

 

 

SCHEDULE 2.01

to 364-Day

Credit Agreement

COMMITMENTS

	 	 	 	 	 
	Lender	 	Commitment	 
	BARCLAYS BANK PLC
	 	$	60,000,000.00	 
	BNP PARIBAS
	 	$	120,000,000.00	 
	ROYAL BANK OF CANADA
	 	$	60,000,000.00	 
	SOCIÉTÉ
GÉNÉRALE
	 	$	30,000,000.00	 
	MERRILL LYNCH BANK USA
	 	$	90,000,000.00	 
	THE BANK OF NOVA SCOTIA
	 	$	30,000,000.00	 
	BAYERISCHE LANDESBANK
	 	$	30,000,000.00	 
	COMMONWEALTH BANK OF AUSTRALIA
	 	$	30,000,000.00	 
	DRESDNER BANK AG, NEW YORK AND GRAND CAYMAN BRANCHES
	 	$	30,000,000.00	 
	BAYERISCHE HYPO-UND VEREINSBANK AG
	 	$	30,000,000.00	 
	MIZUHO CORPORATE BANK, LTD.
	 	$	30,000,000.00	 
	SAOPAOLO IMI S.P.A.
	 	$	30,000,000.00	 
	TORONTO DOMINION (TEXAS) LLC
	 	$	30,000,000.00	 
	WESTPAC BANKING CORPORATION
	 	$	30,000,000.00	 
	 
	 	 	 
	TOTAL
	 	$	630,000,000.00	 
	 
	 	 	 

 

 

SCHEDULE 2.05

to 364-Day

Credit Agreement

SWINGLINE COMMITMENTS

	 	 	 	 	 
	Lender	 	Commitment	 
	BARCLAYS BANK PLC
	 	$	60,000,000.00	 
	BNP PARIBAS
	 	$	120,000,000.00	 
	ROYAL BANK OF CANADA
	 	$	60,000,000.00	 
	SOCIÉTÉ
GÉNÉRALE
	 	$	30,000,000.00	 
	MERRILL LYNCH BANK USA
	 	$	90,000,000.00	 
	 
	 	 	 
	TOTAL
	 	$	360,000,000.00	 
	 
	 	 	 

 

 

SCHEDULE 3.06

to 364-Day

Credit Agreement

DISCLOSED MATTERS

None.

 

 

SCHEDULE 3.13

to 364-Day

Credit Agreement

MATERIAL SUBSIDIARIES

	 	 	 	 	 
	 	 	Jurisdiction of	 	CFC Ownership
	Name	 	Incorporation	 	Interest
	 
	 	 	 	 
	Countrywide Home Loans, Inc.
	 	New York	 	100%
	 
	 	 	 	 
	Countrywide Home Loans Servicing LP
	 	Texas	 	Indirect1
	 
	 	 	 	 
	Balboa Insurance Company
	 	California	 	Indirect2
	 
	 	 	 	 
	Countrywide Bank, National Association
	 	United States	 	Indirect3
	 
	 	 	 	 
	Countrywide Securities Corporation
	 	California	 	Indirect4
	 
	 	 	 	 
	CW Securities Holdings, Inc
	 	Delaware	 	100%

 

			
	1	 	Countrywide LP, Inc. owns 99.9% and Countrywide GP, Inc. owns 0.1% of Countrywide Home
Loans Servicing LP. CHL owns 100% of Countrywide LP, Inc. and 100% of Countrywide GP, Inc.
CFC owns 100% of CHL.
	 
	2	 	Balboa Insurance Group, Inc. (“BIG”) owns 100% of Balboa Insurance Company. CFC owns
100% of BIG.
	 
	3	 	Countrywide Financial Holding Company, Inc. (“CFHC”) owns 100% of Effinity Financial
Corporation, which owns 100% of Countrywide Bank, N.A. CFC owns 100% of CFHC.
	 
	4	 	Countrywide Capital Markets, Inc. (“CCM”) owns 100% of Countrywide Securities
Corporation. CFC owns 100% of CCM.

 

 

SCHEDULE 6.02

to 364-Day

Credit Agreement

EXISTING LIENS

None.

 

 

EXHIBIT A

FORM OF

CLOSING CERTIFICATE

          Pursuant to Section 4.01(c) of the 364-Day Credit Agreement, dated as of November [17], 2006
(the “Credit Agreement”; terms defined therein being used herein as therein defined), among
Countrywide Financial Corporation, Countrywide Home Loans, Inc., Countrywide Bank, N.A., the
Lenders party thereto, the Documentation Agent, Syndication Agent and Administrative Agent named
therein, and Barclays Bank PLC, as Managing Administrative Agent, the undersigned [INSERT TITLE OF
OFFICER] of [INSERT NAME OF LOAN PARTY] (the “Certifying Loan Party”) hereby certifies as
follows:

          1. The representations and warranties of the Certifying Loan Party set forth in each
of the Loan Documents to which it is a party or which are contained in any certificate furnished by
or on behalf of the Certifying Loan Party pursuant to any of the Loan Documents to which it is a
party are true and correct in all material respects on and as of the date hereof with the same
effect as if made on the date hereof, except for representations and warranties expressly stated to
relate to a specific earlier date, in which case such representations and warranties were true and
correct in all material respects as of such earlier date.

          2.                                          is the duly elected and qualified Corporate Secretary of the
Certifying Loan Party and the signature set forth for such officer below is such officer’s true and
genuine signature.

          3. No Default or Event of Default has occurred and is continuing as of the date hereof or
after giving effect to the Loans to be made on the date hereof and the use of proceeds thereof.

          4. The conditions precedent set forth in Section 4.01 of the Credit Agreement were satisfied
as of the Closing Date.

          The undersigned Corporate Secretary of the Certifying Loan Party certifies as follows:

          1. There are no liquidation or dissolution proceedings pending or to my knowledge threatened
against the Certifying Loan Party, nor has any other event occurred adversely affecting or
threatening the continued corporate existence of the Certifying Loan Party.

          2. The Certifying Loan Party is a corporation duly incorporated, validly existing and in good
standing under the laws of the jurisdiction of its organization.

          3. Attached hereto as Annex 1 is a true and complete copy of resolutions duly adopted
by the Board of Directors of the Certifying Loan Party on
                     ___, 200_; such resolutions have
not in any way been amended, modified, revoked or rescinded, have been in full

 

2

force and effect since their adoption to and including the date hereof and are now in full
force and effect and are the only corporate proceedings of the Certifying Loan Party now in force
relating to or affecting the matters referred to therein.

          4. Attached hereto as Annex 2 is a true and complete copy of the By-Laws of the
Certifying Loan Party as in effect on the date hereof.

          5. Attached hereto as Annex 3 is a true and complete copy of the Certificate of
Incorporation of the Certifying Loan Party as in effect on the date hereof.

          6. The following persons are now duly elected and qualified officers of the Certifying Loan
Party holding the offices indicated next to their respective names below, and the signatures
appearing opposite their respective names below are the true and genuine signatures of such
officers, and each of such officers is duly authorized to execute and deliver on behalf of the
Certifying Loan Party each of the Loan Documents to which it is a party and any certificate or
other document to be delivered by the Certifying Loan Party pursuant to the Loan Documents to which
it is a party:

	 	 	 	 	 
	Name	 	Office	 	Signature
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

 

3

     IN WITNESS WHEREOF, the undersigned have hereunto set our names as of the date set forth
below.

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

Name:

	 	 
	 	 

Name:
	 	 
	Title:

	 	 	 	Title: Corporate Secretary	 	 

Date: November ___, 2006

 

 

ANNEX 1

[Board Resolutions]

 

 

ANNEX 2

[Bylaws]

 

 

ANNEX 3

[Certificate of Incorporation]

 

 

EXHIBIT B

FORM OF

ASSIGNMENT AND ASSUMPTION

          Reference is made to the 364-Day Credit Agreement, dated as of November [17], 2006 (as
amended, supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Countrywide Financial Corporation, Countrywide Home Loans, Inc., Countrywide Bank, N.A., the
Lenders party thereto, the Documentation Agent, Syndication Agent and Administrative Agent named
therein and Barclays Bank PLC, as managing administrative agent for the Lenders (in such capacity,
the “Managing Administrative Agent”). Unless otherwise defined herein, terms defined in
the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

          The Assignor identified on Schedule l hereto (the “Assignor”) and the Assignee
identified on Schedule l hereto (the “Assignee”) agree as follows:

          1. The Assignor hereby irrevocably sells and assigns to the Assignee without recourse to the
Assignor, and the Assignee hereby irrevocably purchases and assumes from the Assignor without
recourse to the Assignor, as of the Effective Date (as defined below), the interest described in
Schedule 1 hereto (the “Assigned Interest”) in and to the Assignor’s rights and obligations
under the Credit Agreement in the principal amount set forth on Schedule 1 hereto.

          2. The Assignor (a) makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations made in or in
connection with the Credit Agreement, any other Loan Document or any other instrument or document
furnished pursuant thereto or with respect to the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Agreement, any other Loan Document or any other
instrument or document furnished pursuant thereto, other than that the Assignor has not created any
adverse claim upon the interest being assigned by it hereunder and that such interest is free and
clear of any such adverse claim and (b) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of the Borrower, any of its Affiliates or
any other obligor or the performance or observance by the Borrower, any of its Affiliates or any
other obligor of any of their respective obligations under the Credit Agreement or any other Loan
Document or any other instrument or document furnished pursuant hereto or thereto.

          3. The Assignee (a) represents and warrants that it is legally authorized to enter
into this Assignment and Assumption; (b) confirms that it has received a copy of the Credit
Agreement, together with copies of the most recent audited financial statements referred to in
Section 3.04 thereof or delivered pursuant to Section 5.01 thereof and such other documents and
information as it has deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Assumption; (c) agrees that it will, independently and without reliance upon
the Assignor, the Agents or any Lender and based on such documents and information as it

 

2

shall deem appropriate at the time, continue to make its own credit decisions in taking or not
taking action under the Credit Agreement, the other Loan Documents or any other instrument or
document furnished pursuant hereto or thereto; (d) appoints and authorizes the Managing
Administrative Agent to take such action as agent on its behalf and to exercise such powers and
discretion under the Credit Agreement, the other Loan Documents or any other instrument or document
furnished pursuant hereto or thereto as are delegated to the Managing Administrative Agent by the
terms thereof, together with such powers as are incidental thereto; and (e) agrees that it will be
bound by the provisions of the Credit Agreement and will perform in accordance with its terms all
the obligations which by the terms of the Credit Agreement are required to be performed by it as a
Lender including, if it is organized under the laws of a jurisdiction outside the United States,
its obligation pursuant to Section 2.16(e) of the Credit Agreement.

          4. The effective date of this Assignment and Assumption shall be the Effective Date
of Assignment described in Schedule 1 hereto (the “Effective Date”). Following the
execution of this Assignment and Assumption, it will be delivered to the Managing Administrative
Agent for acceptance by it and recording by the Managing Administrative Agent pursuant to the
Credit Agreement, effective as of the Effective Date (which shall not, unless otherwise agreed to
by the Managing Administrative Agent, be earlier than five Business Days after the date of such
acceptance and recording by the Managing Administrative Agent).

          5. Upon such acceptance and recording, from and after the Effective Date, the
Managing Administrative Agent shall make all payments in respect of the Assigned Interest
(including payments of principal, interest, fees and other amounts) to the Assignor for amounts
which have accrued to the Effective Date and to the Assignee for amounts which have accrued
subsequent to the Effective Date.

          6. From and after the Effective Date, (a) the Assignee shall be a party to the
Credit Agreement and, to the extent provided in this Assignment and Assumption, have the rights and
obligations of a Lender thereunder and under the other Loan Documents and shall be bound by the
provisions thereof and (b) the Assignor shall, to the extent provided in this Assignment and
Assumption, relinquish its rights (except under Sections 2.14, 2.15, 2.16 and 10.03 of the Credit
Agreement for the period prior to the Effective Date) and be released from its obligations under
the Credit Agreement.

          7. This Assignment and Assumption shall be governed by and construed in accordance with the
laws of the State of New York.

          IN WITNESS WHEREOF, the parties hereto have caused this Assignment and Assumption to be
executed as of the date first above written by their respective duly authorized officers on
Schedule 1 hereto.

 

 

Schedule 1

to Assignment and Assumption with respect to

the 364-Day Credit Agreement, dated as of November [17], 2006,

among Countrywide Financial Corporation, Countrywide Home Loans, Inc.,

Countrywide Bank, N.A., the Lenders party thereto, the Documentation Agent, Syndication

Agent and Administrative Agent named therein and Barclays Bank PLC, as Managing

Administrative Agent

Name of Assignor:                                                             

Name of Assignee:                                                             

Effective Date of Assignment:                                         

	 	 	 
	Principal Commitment	 	 
	Amount Assigned	 	Commitment Percentage Assigned
	 
	$________
	 	___.________%

	 	 	 	 	 	 	 	 	 	 	 
	[Name of Assignee]	 	 	 	[Name of Assignor]	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

Title:
	 	 	 	 	 	 

Title:
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Required Consents (if any):	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Barclays Bank PLC, as Managing Administrative Agent	 	 	 	Countrywide Financial Corporation, as Borrower	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	[Name of Swingline Lender]	 	 	 	Countrywide Home Loans, Inc., as Borrower	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	 	 	 	 	Title:	 	 

 

2

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Countrywide Bank, N.A., as Borrower	 	 
	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Title:
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Accepted for Recordation in the Register:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Barclays Bank PLC, as Managing 

Administrative Agent	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 

 

 

EXHIBIT C

FORM OF

OPINION OF BORROWER’S COUNSEL

November ___, 2006

Barclays Bank PLC

as Managing Administrative Agent

200 Park Avenue

New York, New York 10166

and

The Lenders named in the

Credit Agreement referred to below

Gentlemen and Ladies:

     I have acted as counsel to Countrywide Financial Corporation, a Delaware corporation (“CFC”),
and Countrywide Home Loans, Inc., a New York corporation (“CHL”, together with CFC, “Countrywide”),
in connection with the 364-Day Credit Agreement, dated as of November ___, 2006 (the “Credit
Agreement”), among CFC, CHL, Countrywide Bank N.A., the Lenders named therein and Barclays Bank
PLC, as Managing Administrative Agent for the Lenders (in such capacity, the “Managing
Administrative Agent”). Capitalized terms not otherwise defined herein shall have the meanings
ascribed to them in the Credit Agreement.

     In connection with rendering this opinion letter, I, or attorneys working under my direction,
have examined, among other things, originals, certified copies or copies otherwise identified to my
satisfaction as being true copies of the following:

	 	(a)	 	the Credit Agreement; and
	 
	 	(b)	 	the Notes; and
	 
	 	(c)	 	Certified copies of resolutions adopted by the Boards of Directors of CFC on
February 22, 2005 and June 14, 2006 and CHL on November 4, 2005, authorizing the
execution and delivery of the Credit Agreement and the Notes.

     For the purpose of rendering this opinion, I have made such documentary, factual and legal
examinations as I have deemed necessary under the circumstances. As to factual matters, I have
relied upon statements, certificates and other assurances of public officials and of officers and
other representatives of Countrywide, and upon such other certificates as I have deemed
appropriate, which factual matters have not been independently established or verified by me. I
have also assumed, among other things, the genuineness of all signatures, the legal capacity of all

 

2

natural persons, the authenticity of all documents submitted to me as originals, and the
conformity to original documents of all documents submitted to me as copies and the authenticity of
the originals of such copied documents.

     On the basis of and subject to the foregoing examination, and in reliance thereon, and subject
to the assumptions, qualifications, exceptions and limitations expressed herein, I am of the
opinion that:

	A.	 	Each of CFC and CHL (a) is duly incorporated, validly existing and in good standing as a
corporation under the laws of the state of its incorporation; and (b) has the corporate power
and authority to execute, deliver and perform its obligations under, and to consummate the
transactions contemplated by, the Credit Agreement and the Notes (the “Transaction
Documents”).
	 
	B.	 	The execution, delivery and performance of the Transaction Documents by Countrywide and the
consummation of the transactions contemplated thereby will not result in a breach of any term
or provision of the Certificate of Incorporation or Bylaws of CFC or CHL, will not violate any
law, rule or regulation binding on CFC or CHL or, to my knowledge, any judgment, order or
decree binding on CFC or CHL, will not conflict with, result in a breach or violation of, or
constitute a default under, the terms of any indenture or other agreement or instrument known
to me to which Countrywide is a party or by which it is bound, which breach, violation or
default would have a material adverse affect on Countrywide, and will not result in or require
the creation or imposition of any Lien on any asset of CFC or CHL.

	C.	 	No consent, approval, authorization or order of any state or federal court or government
agency or body is required for the execution, delivery and performance by Countrywide of the
Transaction Documents, or the consummation of the transactions contemplated by the Transaction
Documents, except for those consents, approvals, authorizations or orders which previously
have been obtained.

	D.	 	Assuming that the Credit Agreement is a valid and legally binding obligation of the Lenders,
each of the Transaction Documents constitutes the valid, legal and binding obligation of
Countrywide enforceable against Countrywide in accordance with its terms.

	E.	 	There is no action, suit, proceeding or investigation pending or, to the best of my
knowledge, threatened against Countrywide which, in my judgment, either in any one instance or
in the aggregate, would draw into question the validity of the Transaction Documents or which
would likely impair materially the ability of Countrywide to perform under the terms of the
Transaction Documents.

	F.	 	Each of the CFC and CHL is not an “investment company” or a company “controlled” by an
“investment company” within the meaning of the Investment Company Act of 1940, as amended.

 

3

     The foregoing opinions are subject to the following additional assumptions, exceptions,
qualifications and limitations:

	1.	 	I have assumed that all parties to the Credit Agreement other than Countrywide have all
requisite power and authority to execute, deliver and perform their respective obligations
under the Credit Agreement, and that the Credit Agreement has been duly authorized by all
necessary corporate action on the part of such parties, has been executed and delivered by
such parties and constitutes the legal, valid and binding obligation of such parties.

	2.	 	The enforceability of the Transaction Documents may be limited by the effect of laws relating
to (a) bankruptcy, reorganization, insolvency, moratorium or other similar laws now or
hereafter in effect relating to creditors’ rights generally, including, without limitation,
the effect of statutory or other laws regarding fraudulent conveyances or preferential
transfers, and (b) general principles of equity upon the specific enforceability of any of the
remedies, covenants or other provisions of the Transaction Documents and upon the availability
of injunctive relief or other equitable remedies and the application of principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or at law)
as such principles relate to, limit or affect the enforcement of creditors’ rights generally
and the discretion of the court before which any proceeding for such enforcement may be
brought.

	3.	 	I express no opinion (i) as to the ability to obtain specific performance, injunctive relief
or other equitable relief (whether sought in a proceeding at law or in equity) as a remedy for
noncompliance with the Transaction Documents, (ii) regarding the rights or remedies available
to any party for violations or breaches of any provisions which are immaterial or for
violations or breaches of any provisions the enforceability of which a court determines would
be unreasonable under the then existing circumstances, (iii) regarding the rights or remedies
available to any party for material violations or breaches which are the proximate result of
actions taken by such party, which actions such party is not entitled to take pursuant to the
relevant agreement or instrument or applicable laws or which otherwise violates applicable
laws, (iv) regarding the rights or remedies available to any party insofar as such party may,
after the date hereof, take discretionary action which is unreasonable or capricious, or is
not taken in good faith or in a commercially reasonable manner, whether or not such action is
permitted under the Loan Documents, and (v) regarding whether strict enforcement of covenants
in the Loan Documents may be obtained absent a showing of damage to the Lenders, the Managing
Administrative Agent, the Administrative Agent, the Syndication Agent, the Documentation
Agent, and the Arrangers or impairment of CFC’s or CHL’s ability to pay.

	4.	 	I express no opinion with respect to the legality, validity, binding nature or enforceability
of any provision of the Transaction Documents to the effect that rights or remedies are not
exclusive, that every right or remedy is cumulative and may be exercised in addition to any
other right or remedy, that the election of some particular remedy does not preclude recourse
to one or more others or that failure to exercise or delay in exercising rights or remedies
will not operate as a waiver of any such right or remedy.

 

4

	5.	 	I express no opinion as to the legality, validity, binding nature or enforceability of any
provisions in the Transaction Documents (i) indemnifying a party, to the extent such
provisions may be held unenforceable as contrary to public policy, (ii) insofar as they
provide for the payment or reimbursement of costs and expenses or indemnification for claims,
losses or liabilities if a court or other tribunal were to determine that the amount thereof
was unreasonable, or (iii) regarding a party’s ability to collect attorneys’ fees and costs in
an action involving the Transaction Documents, if such party is not the prevailing party in
such action (I call your attention to the effect of Section 1717 of the California Civil Code
in this regard).

	6.	 	I express no opinion with respect to the legality, validity, binding nature or enforceability
of (i) any broadly stated waivers, including, without limitation, waivers of diligence,
presentment, demand, protest or notice, (ii) any waivers or consents (whether or not
characterized as a waiver or consent in the Transaction Documents) which are found by
California courts to be against public policy, (iii) any waiver or variations of rights of a
debtor, including a guarantor, surety or a subordinating creditor, or duties of a secured
party to the extent such waivers or variations are contrary to the provisions of Section 9602
of the Uniform Commercial Code of the State of California, (iv) any waivers of any statute of
limitations to the extent that such waivers are in excess of four years beyond the statutory
period, (v) any power of attorney granted under the Transaction Documents, or (vi) any rights
of setoff.

	7.	 	My opinion is subject to limitations on the right of a lender to impose penalties,
forfeitures, late payment charges or an increase in interest rate upon delinquency in payment
or the occurrence of a default (“Penalties”) if it is determined that such Penalties do not
bear a reasonable relation to the damage suffered by the lender as a result of such
delinquencies or defaults.

	8.	 	For purposes of the opinion expressed in paragraph D above, I have assumed that the laws of
the State of New York are identical to the laws of the State of California.

	9.	 	The qualification of any opinion or statement herein by the use of the words “to the best of
my knowledge” means that, during the course of my employment by CFC or CHL, as the case may
be, in connection with the Transaction Documents, no information has come to my attention
which gives me actual knowledge of the existence of the matters, actions, proceedings, items,
documents or facts so qualified. However, I have not undertaken any independent investigation
or inquiry to determine the existence of such matters, actions, proceedings, items, documents
or facts and no inference as to my knowledge thereof shall be drawn from the fact of my
employment by any party.

	10.	 	I have assumed, without independent check or certification, that there are no agreements or
understandings among Countrywide, the Lenders, the Managing Administrative Agent and any other
party which would expand, modify or otherwise affect the terms of the documents described
herein or the respective rights or obligations of the parties thereunder.

 

5

     I am admitted to practice in the State of California, and except as set forth below, I
render no opinion herein as to matters involving the laws of any jurisdiction other than the State
of California and the Federal laws of the United States of America. Insofar as the opinions
expressed in paragraph A above relate to matters that are governed by the laws of the State of
Delaware, I am generally familiar with the laws of the State of Delaware as they relate to
corporate organization, and for the limited purpose of the opinions set forth in paragraph A above,
I do not feel it necessary to consult with Delaware counsel. Insofar as the opinions expressed in
paragraph A above relate to matters that are governed by the laws of the State of New York, I am
generally familiar with the laws of the State of New York as they relate to corporate organization,
and for the limited purpose of the opinions set forth in paragraph A above, I do not feel it
necessary to consult with New York counsel. This opinion is limited to such laws as they presently
exist to present judicial interpretations thereof and to the facts as they presently exist or are
contemplated by the Transaction Documents.

     In rendering this opinion, I assume no obligation to revise or supplement this opinion should
the present laws of the jurisdictions mentioned herein be changed by legislative actions, judicial
decisions or otherwise. This opinion is rendered as of the date hereof, and I express no opinion
as to, and disclaim any undertaking or obligation to update this opinion in respect of, changes of
circumstances or events which occur subsequent to this date.

     This opinion is solely for your benefit and that of your assigns under the Credit Agreement
and may not be relied on or quoted by any other person without my prior written consent except that
you may furnish copies thereof (1) to any permitted or prospective lenders under the Credit
Agreement (which party, if it becomes a lender shall be entitled to rely hereon), (2) to your
independent auditors and attorneys, (3) upon the request of the state or federal authority or
official having regulatory jurisdiction over you, (4) pursuant to order or legal process of any
court or governmental agency and (5) in connection with any litigation relating to any of the
Transaction Documents or this opinion.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

EXHIBIT D

FORM OF

NEW LENDER SUPPLEMENT

          NEW LENDER SUPPLEMENT (this “New Lender Supplement”), dated                     , 200__, to the
364-Day Credit Agreement, dated as of November [17], 2006, as amended, supplemented or otherwise
modified from time to time (the “Credit Agreement”), among Countrywide Financial
Corporation, Countrywide Home Loans, Inc., Countrywide Bank, N.A., the Lenders party thereto, the
Documentation Agent, Syndication Agent and Administrative Agent named therein and Barclays Bank
PLC, as Managing Administrative Agent.

WITNESSETH:

          WHEREAS, the Credit Agreement provides in Section 2.01(b) thereof that any bank, financial
institution or other entity may become a party to the Credit Agreement with the consent of the
Borrower and the Managing Administrative Agent (which consent shall not be unreasonably withheld)
by executing and delivering to the Borrower and the Managing Administrative Agent a supplement to
the Credit Agreement in substantially the form of this New Lender Supplement; and

          WHEREAS, the undersigned now desires to become a party to the Credit Agreement;

          NOW, THEREFORE, the undersigned hereby agrees as follows:

          1. The undersigned agrees to be bound by the provisions of the Credit Agreement, and agrees
that it shall, on the date this New Lender Supplement is accepted by the Borrower and the Managing
Administrative Agent, become a Lender for all purposes of the Credit Agreement to the same extent
as if originally a party thereto, with an incremental Commitment of $                    .

          2. The undersigned (a) represents and warrants that it is legally authorized to enter into
this New Lender Supplement; (b) confirms that it has received a copy of the Credit Agreement,
together with copies of the most recent audited financial statements referred to in Section 3.04
thereof or delivered pursuant to Section 5.01 thereof and such other documents and information as
it has deemed appropriate to make its own credit analysis and decision to enter into this New
Lender Supplement; (c) agrees that it has made and will, independently and without reliance upon
any Agent or any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action
under the Credit Agreement, any other Loan Document or any instrument or document furnished
pursuant hereto or thereto; (d) appoints and authorizes the Managing Administrative Agent to take
such action as agent on its behalf and to exercise such powers and discretion under the Credit
Agreement, any other Loan Document or any instrument or document furnished pursuant hereto or
thereto as are delegated to the Managing Administrative Agent by the terms thereof, together with
such powers as are incidental thereto;

 

2

and (e) agrees that it will be bound by the provisions of the Credit Agreement and will
perform in accordance with its terms all the obligations which by the terms of the Credit Agreement
are required to be performed by it as a Lender including, without limitation, if it is organized
under the laws of a jurisdiction outside the United States, its obligation pursuant to Section
2.16(e) of the Credit Agreement.

          3. The address of the undersigned for notices for the purposes of the Credit Agreement is as
follows:

          4. Terms defined in the Credit Agreement shall have their defined meanings when used herein.

 

3

          IN WITNESS WHEREOF, the undersigned has caused this New Lender Supplement to be executed and
delivered by a duly authorized officer on the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	[INSERT NAME OF LENDER]	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	By	 	 	 	 
	 
	 	 	 	 	 	 	 	 
Name:	 	 
	 

	 	 	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Accepted this _____ day of
_____________, 200__.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	COUNTRYWIDE FINANCIAL CORPORATION	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	COUNTRYWIDE HOME LOANS, INC.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	COUNTRYWIDE BANK, N.A.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Accepted this ____ day of
______________, 200__.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	BARCLAYS BANK PLC,

as Managing Administrative Agent	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 

 

EXHIBIT E

FORM OF INCREASED FACILITY ACTIVATION NOTICE

			
	To:	 	BARCLAYS BANK PLC, as Managing Administrative

Agent under the Credit Agreement referred to below

          Reference is hereby made to the 364-Day Credit Agreement, dated as of November [17], 2006 (as
amended, supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Countrywide Financial Corporation, Countrywide Home Loans, Inc. and Countrywide Bank, N.A.
(collectively, the “Borrower”), the Lenders party thereto, the Documentation Agent,
Syndication Agent and Administrative Agent named therein and Barclays Bank PLC, as Managing
Administrative Agent. Terms defined in the Credit Agreement shall have their defined meanings when
used herein.

          This notice is an Increased Facility Activation Notice referred to in the Credit Agreement,
and the Borrower and each of the Lenders party hereto hereby notify you that:

	 	1.	 	Each Lender party hereto agrees to make an incremental Commitment in the amount
set forth opposite such Lender’s name below under the caption “Incremental Commitment
Amount.”
	 
	 	2.	 	The Increased Facility Closing Date is                     , 200_.

          The undersigned Treasurer of the Borrower certifies as follows:

	 	(i)	 	I am the duly elected, qualified and acting Treasurer of the
Borrower.
	 
	 	(ii)	 	I have reviewed the terms of the Credit Agreement and the other
Loan Documents and have made or caused to be made under my supervision, a
review in reasonable detail of the transactions and condition of the Borrower
during the accounting period ended                     , 200 ___ [insert most recent
period for which financial statements have been delivered]. Such review did
not disclose the existence during or at the end of the accounting period
covered by the financial statements, and I have no knowledge of the existence,
as of the date of this Certificate, of any Default or Event of Default.

 

 

2

          IN WITNESS WHEREOF, the undersigned have executed this Increased Facility Activation Notice
this ___ day of                     , 200_.

	 	 	 	 	 
	 	COUNTRYWIDE FINANCIAL CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	Treasurer 	 
	 
	 	COUNTRYWIDE HOME LOANS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	Treasurer 	 
	 
	 	COUNTRYWIDE BANK, N.A.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	Treasurer 	 
	 
	Incremental Commitment Amount 

$
	[NAME OF LENDER]

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	CONSENTED TO:

BARCLAYS BANK PLC,

as Managing Administrative Agent

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]