Document:

Exhibit 10.6

 

EIGHTH AMENDED AND
RESTATED

LIQUIDITY
AGREEMENT

 

among

 

BUNGE ASSET
FUNDING CORP.

 

THE FINANCIAL
INSTITUTIONS LISTED

ON THE SIGNATURE PAGES HERETO

 

CITIBANK, N.A.,

as Syndication
Agent,

 

BNP PARIBAS,

as Documentation Agent,

 

CREDIT SUISSE, ACTING
THROUGH ITS CAYMAN ISLANDS BRANCH,

as Documentation
Agent,

 

COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK
INTERNATIONAL”, NEW YORK BRANCH,

as Documentation Agent,

 

and

 

JPMORGAN CHASE
BANK, N.A.,

as Administrative
Agent

 

Dated as of October 5,
2007

 

J.P. Morgan Securities Inc. and Citigroup Global Markets
Inc., as lead Arrangers and Joint Bookrunners

 

 

TABLE OF CONTENTS

 

	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  ARTICLE I DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II COMMERCIAL PAPER OPERATIONS

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01

  	
   

  	
  Issuance of Commercial Paper

  	
   

  	
  2

  
	
  SECTION 2.02

  	
   

  	
  Commercial Paper Account; Payment of Commercial
  Paper

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III LIQUIDITY LOANS

  	
   

  	
  3

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01

  	
   

  	
  Liquidity Loans

  	
   

  	
  3

  
	
  SECTION 3.02

  	
   

  	
  The Liquidity Loan Notes

  	
   

  	
  9

  
	
  SECTION 3.03

  	
   

  	
  Interest

  	
   

  	
  10

  
	
  SECTION 3.04

  	
   

  	
  Responsibilities of Each Liquidity Bank

  	
   

  	
  11

  
	
  SECTION 3.05

  	
   

  	
  Confirming Letters of Credit

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV OTHER CREDIT TERMS

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01

  	
   

  	
  Fees

  	
   

  	
  11

  
	
  SECTION 4.02

  	
   

  	
  Termination or Reduction of the Aggregate Liquidity
  Commitment

  	
   

  	
  12

  
	
  SECTION 4.03

  	
   

  	
  Extensions of the Aggregate Liquidity Commitment

  	
   

  	
  13

  
	
  SECTION 4.04

  	
   

  	
  Proceeds

  	
   

  	
  15

  
	
  SECTION 4.05

  	
   

  	
  Increased Costs; Capital Adequacy

  	
   

  	
  15

  
	
  SECTION 4.06

  	
   

  	
  Taxes.

  	
   

  	
  18

  
	
  SECTION 4.07

  	
   

  	
  Addition, Removal and Downgrading of Liquidity Banks

  	
   

  	
  18

  
	
  SECTION 4.08

  	
   

  	
  Illegality

  	
   

  	
  19

  
	
  SECTION 4.09

  	
   

  	
  Unavailability of LIBOR Liquidity Loans

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V PAYMENTS

  	
   

  	
  20

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01

  	
   

  	
  Payments on Non–Business Days

  	
   

  	
  20

  
	
  SECTION 5.02

  	
   

  	
  Prepayments

  	
   

  	
  20

  
	
  SECTION 5.03

  	
   

  	
  Cash Collateral Account

  	
   

  	
  20

  
	
  SECTION 5.04

  	
   

  	
  Method and Place of Payment, etc.

  	
   

  	
  21

  
	
  SECTION 5.05

  	
   

  	
  Draws on and Exchange of the Letter of Credit

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI CONDITIONS PRECEDENT

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01

  	
   

  	
  Conditions to Effectiveness

  	
   

  	
  23

  
	
  SECTION 6.02

  	
   

  	
  Conditions to Each Issuance of Commercial Paper

  	
   

  	
  26

  

 

 

	
  SECTION 6.03

  	
   

  	
  Conditions Precedent to the Making of Each Liquidity
  Loan

  	
   

  	
  27

  
	
  SECTION 6.04

  	
   

  	
  Conditions to the Making of any Liquidity Loan
  Pursuant to subsection 3.01(a)(v)

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII COVENANTS

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.01

  	
   

  	
  Affirmative Covenants

  	
   

  	
  28

  
	
  SECTION 7.02

  	
   

  	
  Negative Covenants

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII mandatory LIQUIDATION EVENTS, MANDATORY
  CP WIND-DOWN EVENTS AND REMEDIES 

  	
   

  	
  31

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01

  	
   

  	
  Mandatory Liquidation Events

  	
   

  	
  31

  
	
  SECTION 8.02

  	
   

  	
  Mandatory CP Wind-Down Events

  	
   

  	
  34

  
	
  SECTION 8.03

  	
   

  	
  Remedies

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX REPRESENTATIONS AND WARRANTIES 

  	
   

  	
  35

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01

  	
   

  	
  Corporate Existence

  	
   

  	
  35

  
	
  SECTION 9.02

  	
   

  	
  Corporate Power; Authorization; Enforceable
  Obligation

  	
   

  	
  35

  
	
  SECTION 9.03

  	
   

  	
  No Legal Bar

  	
   

  	
  36

  
	
  SECTION 9.04

  	
   

  	
  No Material Litigation

  	
   

  	
  36

  
	
  SECTION 9.05

  	
   

  	
  Security Interest

  	
   

  	
  36

  
	
  SECTION 9.06

  	
   

  	
  Commercial Paper; Investment Company Act

  	
   

  	
  37

  
	
  SECTION 9.07

  	
   

  	
  Securities Act

  	
   

  	
  37

  
	
  SECTION 9.08

  	
   

  	
  Accuracy of Information

  	
   

  	
  37

  
	
  SECTION 9.09

  	
   

  	
  Taxes and ERISA Liability

  	
   

  	
  37

  
	
  SECTION 9.10

  	
   

  	
  Federal Regulations

  	
   

  	
  37

  
	
  SECTION 9.11

  	
   

  	
  No Change

  	
   

  	
  38

  
	
  SECTION 9.12

  	
   

  	
  Solvency

  	
   

  	
  38

  
	
   

  	
   

  	
   

  
	
  ARTICLE X THE ADMINISTRATIVE AGENT AND THE LIQUIDITY
  BANKS

  	
   

  	
  38

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01

  	
   

  	
  Appointment of the Administrative Agent

  	
   

  	
  38

  
	
  SECTION 10.02

  	
   

  	
  Resignation of the Administrative Agent

  	
   

  	
  42

  
	
  SECTION 10.03

  	
   

  	
  Obligations Several

  	
   

  	
  42

  
	
  SECTION 10.04

  	
   

  	
  Multiple Capacities

  	
   

  	
  42

  
	
  SECTION 10.05

  	
   

  	
  Agent Communications

  	
   

  	
  43

  
	
  SECTION 10.06

  	
   

  	
  Documentation Agent and Syndication Agent

  	
   

  	
  43

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI MISCELLANEOUS

  	
   

  	
  43

  
	
   

  	
   

  	
   

  
	
  SECTION 11.01

  	
   

  	
  Computations

  	
   

  	
  43

  
	
  SECTION 11.02

  	
   

  	
  Exercise of Rights

  	
   

  	
  43

  

 

ii

 

	
  SECTION 11.03

  	
   

  	
  Amendment and Waiver

  	
   

  	
  44

  
	
  SECTION 11.04

  	
   

  	
  Expenses and Indemnification

  	
   

  	
  45

  
	
  SECTION 11.05

  	
   

  	
  Successors and Assigns

  	
   

  	
  46

  
	
  SECTION 11.06

  	
   

  	
  Notices, Requests, Demands

  	
   

  	
  49

  
	
  SECTION 11.07

  	
   

  	
  Survival

  	
   

  	
  49

  
	
  SECTION 11.08

  	
   

  	
  GOVERNING LAW

  	
   

  	
  49

  
	
  SECTION 11.09

  	
   

  	
  Counterparts

  	
   

  	
  50

  
	
  SECTION 11.10

  	
   

  	
  Setoff

  	
   

  	
  50

  
	
  SECTION 11.11

  	
   

  	
  Further Assurances

  	
   

  	
  50

  
	
  SECTION 11.12

  	
   

  	
  No Bankruptcy Petition Against BAFC; Liability of
  BAFC

  	
   

  	
  50

  
	
  SECTION 11.13

  	
   

  	
  No Recourse Loan

  	
   

  	
  51

  
	
  SECTION 11.14

  	
   

  	
  Knowledge of BAFC

  	
   

  	
  51

  
	
  SECTION 11.15

  	
   

  	
  Descriptive Headings

  	
   

  	
  51

  
	
  SECTION 11.16

  	
   

  	
  Consent to Jurisdiction and Service of Process

  	
   

  	
  51

  
	
  SECTION 11.17

  	
   

  	
  Confidentiality

  	
   

  	
  52

  
	
  SECTION 11.18

  	
   

  	
  Final Agreement

  	
   

  	
  52

  
	
  SECTION 11.19

  	
   

  	
  U.S.A. PATRIOT Act

  	
   

  	
  52

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
   

  	
  Form of Liquidity Loan Note

  	
   

  	
  A-1

  
	
  EXHIBIT B

  	
   

  	
  Form of Assignment and Assumption Agreement

  	
   

  	
  B-1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ANNEX Y

  	
   

  	
  List of Liquidity Bank Percentages

  	
   

  	
  Y-1

  

 

iii

 

EIGHTH
AMENDED AND RESTATED

 

LIQUIDITY
AGREEMENT

 

EIGHTH AMENDED AND RESTATED LIQUIDITY AGREEMENT, dated
as of October 5, 2007 (as amended, supplemented or otherwise modified in
accordance with the terms hereof and in effect from time to time, this “Agreement”),
among BUNGE ASSET FUNDING CORP., a Delaware corporation (hereinafter, together
with its successors and assigns, called “BAFC”), the lenders that are
parties hereto (hereinafter each, together with its successors and assigns, a “Liquidity
Bank”, and collectively, together with their successors and assigns, the “Liquidity
Banks”), and JPMORGAN CHASE BANK, N.A., a New York banking corporation, as
agent for the Liquidity Banks (hereinafter, together with its successors and
assigns in such capacity, the “Administrative Agent”).  This Agreement
amends and restates that certain Seventh Amended and Restated Liquidity
Agreement, dated as of June 11, 2007, among BAFC, the Liquidity Banks and
the Administrative Agent.

 

WITNESSETH:

 

WHEREAS, BAFC proposes to issue and sell its
Commercial Paper in the United States commercial paper market and utilize the
net proceeds thereof to make advances under the Series 2000-1 VFC
Certificate;

 

WHEREAS, BAFC has made application to the Liquidity
Banks for the commitment of the Liquidity Banks to make loans to BAFC, the
proceeds of which shall be used to either make payments in respect of BAFC’s
Commercial Paper or to fund advances under the Series 2000-1 VFC
Certificate;

 

WHEREAS, subject to the terms and conditions set forth
herein, the Liquidity Banks are willing to make such loans to BAFC; and

 

WHEREAS, BAFC desires to utilize the facility provided
by the Liquidity Banks under this Agreement both as a revolving credit facility
and as a back-up liquidity facility for any Commercial Paper issued by BAFC,
and the Liquidity Banks intend to make such facility available for both such
purposes.

 

NOW, THEREFORE, in consideration of the premises and
mutual covenants herein contained, the parties hereto agree as follows:

 

ARTICLE
I

DEFINITIONS

 

SECTION 1.01       Definitions.  Except as otherwise expressly provided below
or elsewhere herein, or unless the context otherwise requires, capitalized
terms used herein shall have the meanings assigned to such terms in Annex X (as
amended, supplemented or otherwise 

 

 

modified and in effect from time to time, “Annex X”) attached to
the Fifth Amended and Restated Pooling Agreement, dated as of June 28,
2004, among BAFC, Bunge Management Services, Inc., as the Servicer, and
The Bank of New York, as Trustee (as amended, supplemented or otherwise
modified and in effect from time to time, the “Pooling Agreement”),
which is incorporated by reference herein.

 

ARTICLE
II

COMMERCIAL PAPER OPERATIONS

 

SECTION 2.01       Issuance
of Commercial Paper.

 

(a)           Subject to the provisions of this Section 2.01
and to Article VI hereof, so long as the Depositary is not in
receipt of instructions then in effect from the Administrative Agent, given in
accordance with this Section 2.01 and the Depositary Agreement, not
to issue or deliver Commercial Paper because a No-Issuance Condition for
Commercial Paper has occurred and is continuing, BAFC shall have the right
prior to the Liquidity Commitment Expiration Date, from time to time to issue
and sell Commercial Paper pursuant to the terms of this Agreement and the
Depositary Agreement.  Any instructions
to cease Commercial Paper issuance from the Administrative Agent to the
Depositary shall specify the event as being the reason to cease issuing and
delivering Commercial Paper.  The
Administrative Agent agrees that it shall only instruct the Depositary not to
issue or deliver Commercial Paper if there shall have occurred one or more of
the events described in this subsection 2.01(a). If the Administrative
Agent shall, as permitted by this subsection 2.01(a) and the
Depositary Agreement, instruct the Depositary not to issue or deliver
Commercial Paper, BAFC shall not thereafter issue and sell any Commercial
Paper.  Concurrently with the giving of
any such instructions to the Depositary, the Administrative Agent shall give
notice thereof to BAFC, the Servicer, the Collateral Agent, the Letter of
Credit Agent, each Placement Agent and the Series 2000-1 Rating Agencies,
but failure to do so shall not impair the effect of such instructions.

 

(b)           BAFC agrees that each CP Note shall (i) be
in the applicable form attached to the Depositary Agreement and be completed in
accordance with this Agreement and the Depositary Agreement, (ii) be dated
the date of issuance thereof, (iii) be made payable to the order of a
named payee or bearer, (iv) have a maturity date which shall be a Business
Day not later than the earliest to occur of (A) the one hundred and
eightieth (180th) day following the issuance thereof, (B) the third (3rd)
Business Day prior to the Liquidity Commitment Expiration Date and (C) the
third (3rd) Business Day prior to the L/C Expiration Date in effect on the date
of the issuance thereof, and (v) be in a Face Amount of $100,000 or an
integral multiple of $1,000 in excess thereof; provided that no issuance
of Commercial Paper shall be made if, after giving effect to such issuance, the
Credits Outstanding shall exceed the Aggregate Available Liquidity 

 

2

 

Commitment.  All
Commercial Paper shall be delivered and issued against payment therefor in
accordance with the terms of this Agreement and the Depositary Agreement.

 

SECTION 2.02       Commercial
Paper Account; Payment of Commercial Paper.

 

(a)           Contemporaneously with the execution
and delivery by BAFC of the Depositary Agreement, and for the purposes of this
Agreement, the Security Agreement and the Depositary Agreement, the Depositary
shall establish at its banking offices in The City of New York a special
purpose non-interest bearing trust account for the sole and exclusive benefit
of the Secured Parties (said account being referred to herein and in the
Depositary Agreement as the “Commercial Paper Account”), over which the
Depositary shall have sole dominion and control and sole right of withdrawal.  Proceeds of the sale of Commercial Paper
shall be deposited in the Commercial Paper Account and used to the extent
necessary to pay matured and concurrently maturing Commercial Paper; otherwise
proceeds of the sale of Commercial Paper shall be transferred to the Cash
Collateral Account for disposition in accordance with the Security Agreement.

 

(b)           Contemporaneously with the execution
and delivery by BAFC of the Depositary Agreement and for the purposes of this
Agreement, the Security Agreement and the Depositary Agreement, the Depositary
shall establish at its banking offices in The City of New York a special
purpose, non-interest bearing trust account, for the sole and exclusive benefit
of the holders of the outstanding Commercial Paper, over which the Depositary
shall have sole dominion and control and the sole right of withdrawal (said
account being referred to herein and in the Depositary Agreement as the “Special
Payment Account”).  Proceeds of a
Liquidity Loan made in accordance with subsection 3.01(a)(ii), (iii) or
(iv) hereof and Section 8(b), (c) or (d) of
the Depositary Agreement and all funds received from the Collateral Agent at
any time that the Collateral Agent indicates that a Security Agreement Event of
Default exists and is continuing shall be deposited in the Special Payment
Account and used to the extent necessary to pay in full the Commercial Paper as
it matures.  BAFC shall have no legal,
equitable or beneficial interest in the Special Payment Account.

 

ARTICLE
III

LIQUIDITY LOANS

 

SECTION 3.01       Liquidity
Loans.

 

(a)           Subject to and upon the terms and
conditions herein set forth, each Liquidity Bank severally agrees on a
revolving basis prior to the Liquidity Commitment Expiration Date, to make a
loan or loans (each a “Liquidity Loan” and collectively, the “Liquidity
Loans”) to BAFC, which Liquidity Loans may be repaid and the principal
amount thereof (with the exception of Exiting Loans) reborrowed and bear
interest in accordance with the provisions hereof and shall be made by the
Liquidity Banks (with the 

 

3

 

exception of Exiting Loans) pro rata on the basis of
their Percentages of the Aggregate Liquidity Commitment as follows:

 

(i)            If, on any Business Day that
Commercial Paper matures, BAFC is unable to or is not permitted to (including,
but not limited to, as a result of the occurrence of a Mandatory CP Wind-Down
Event) issue additional Commercial Paper in an aggregate net amount sufficient
to repay in full all Commercial Paper maturing on such day (the excess of the
amount required to pay in full all such Commercial Paper maturing on such day
after giving effect to any disbursement with respect to such maturing
Commercial Paper from the Cash Collateral Account or the Commercial Paper
Account, over the sum of the net amount obtained by the issuance of Commercial
Paper on such day, being hereinafter referred to as a “Commercial Paper
Deficit”), each Liquidity Bank shall, upon (x) receipt of notice
(which may be a facsimile) from the Depositary to the effect that BAFC is
unable to so issue and sell additional Commercial Paper at any price and the
amount of the Commercial Paper Deficit and (y) request of BAFC (which may
be contained in the notice referred to in the preceding clause (x)) or the
Depositary (the Depositary acting as attorney-in-fact for BAFC), and subject to
the limitations imposed by subsection 3.01(c) and Section 6.03
hereof, make a Liquidity Loan in an aggregate principal amount equal to (1) the
product of (A) such Liquidity Bank’s Percentage of the Aggregate Liquidity
Commitment, times (B) the Commercial Paper Deficit, less (2) the
product of (A) such Liquidity Bank’s Percentage of the Aggregate Liquidity
Commitment, times (B) the Series 2000-1 Invested Percentage of
Defaulted Loans reflected on the Daily Report delivered on such day (calculated
by converting any Defaulted Loans denominated in Approved Currencies other than
Dollars into Dollars at the Rate of Exchange).

 

(ii)           If the Depositary shall have failed
to timely receive from the Administrative Agent the notice of extension of the
Liquidity Commitment Expiration Date described in subsection 4.03(b) or
(c) hereof, then each Liquidity Bank shall, subject to the
limitations imposed by subsection 3.01(c) and Section 6.03,
no later than the fifth Business Day prior to any upcoming Liquidity Commitment
Expiration Date make a Liquidity Loan in a principal amount equal to (1) the
product of (A) such Liquidity Bank’s Percentage of the Aggregate Liquidity
Commitment times (B) the Face Amount of all Commercial Paper
outstanding on such day, after giving effect to funds otherwise available to
pay such Commercial Paper on such day, less (2) the product of (A) such
Liquidity Bank’s Percentage of the Aggregate Liquidity Commitment, times,
(B) the Series 2000-1 Invested Percentage of Defaulted Loans
reflected on the Daily Report delivered on such day (calculated by converting
any Defaulted Loans denominated in Approved Currencies other than Dollars into
Dollars at the Rate of Exchange).

 

4

 

(iii)          Not later than the fifth Business Day
prior to any upcoming Liquidity Commitment Expiration Date with respect to
which there exists an Exiting Bank, the Exiting Bank shall, upon receipt by the
Administrative Agent of a request from BAFC or the Depositary (acting as
attorney-in-fact for BAFC), and subject to the limitations imposed by subsection
3.01(c) and Section 6.03, make a Liquidity Loan (i.e., an
Exiting Loan as defined in subsection 4.03(c)(ii) hereof) in a
principal amount equal to (1) the product of (A) such Exiting Bank’s
Percentage of the Aggregate Liquidity Commitment (prior to any reduction as a
result of the removal of the Exiting Bank) times (B) the Face
Amount of Commercial Paper then outstanding, after giving effect to funds
otherwise available to pay such Commercial Paper on such day, less (2) the
product of (A) such Exiting Bank’s Percentage of the Aggregate Liquidity
Commitment, times (B) the Series 2000-1 Invested Percentage of
Defaulted Loans reflected on the Daily Report delivered on such day (calculated
by converting any Defaulted Loans denominated in Approved Currencies other than
Dollars into Dollars at the Rate of Exchange).

 

(iv)          In the event of the occurrence of a
Mandatory Liquidation Event, then each Liquidity Bank shall immediately in
accordance with subsection 3.01(b), subject to the limitations imposed
by subsection 3.01(c) and Section 6.03, make a
Liquidity Loan in a principal amount equal to (1) the product of (A) such
Liquidity Bank’s Percentage of the Aggregate Liquidity Commitment times (B) the
Face Amount of all Commercial Paper outstanding on such day, after giving
effect to funds otherwise available to pay such Commercial Paper on such day, less
(2) the product of (A) such Liquidity Bank’s Percentage of the
Aggregate Liquidity Commitment, times (B) the Series 2000-1
Invested Percentage of Defaulted Loans reflected on the Daily Report delivered
on such day (calculated by converting any Defaulted Loans denominated in
Approved Currencies other than Dollars into Dollars at the Rate of Exchange).

 

(v)           Each Liquidity Bank shall in addition
to its obligations under subsection 3.01(a)(i), upon receipt by the
Administrative Agent of a Notice of Borrowing from BAFC or the Depositary
(acting as attorney-in-fact for BAFC) in accordance with subsection 3.01(b) and
subject to the limitations imposed by subsection 3.01(c), Section 6.03
and Section 6.04, make a Liquidity Loan in a principal amount equal
to (1) the product of (A) such Liquidity Bank’s Percentage of the
Aggregate Liquidity Commitment times (B) the amount of the
Borrowing requested by BAFC or the Depositary, less (2) the product
of (A) such Liquidity Bank’s Percentage of the Aggregate Liquidity
Commitment, times (B) the Series 2000-1 Invested Percentage of
Defaulted Loans reflected on the Daily Report delivered on such day (calculated
by converting any Defaulted Loans denominated in Approved Currencies other than
Dollars into Dollars at the Rate of Exchange). 
Prior to the occurrence of a Mandatory Liquidation Event, the proceeds
of each Liquidity Loan made pursuant to this clause (v) shall be 

 

5

 

deposited in the Cash Collateral Account and may be
used by BAFC to fund additional advances under the Series 2000-1 VFC
Certificate.

 

(b)           In order to effect Borrowings
hereunder, BAFC or the Depositary (the Depositary acting as attorney-in-fact
for BAFC in accordance with Section 8 of the Depositary Agreement),
shall give the Administrative Agent telephonic (confirmed in writing promptly
thereafter) or written notice (each, a “Notice of Borrowing”) of the
aggregate principal amount of any Liquidity Loan required by subsection 3.01(a) hereof
(i) for each Borrowing consisting of a Prime Rate Liquidity Loan, not
later than 11:00 a.m. (New York City time) on the date of such Borrowing,
or (ii) for each Borrowing consisting of a LIBOR Liquidity Loan, not later
than 11:00 A.M. (New York City time) three Business Days before the date
of such Borrowing.  Each such Notice of
Borrowing shall specify: (i) the type of Liquidity Loan comprising such
Borrowing, (ii) the amount of such Borrowing required by subsection
3.01(a) hereof; and (iii) in the case of a Borrowing consisting
of a LIBOR Liquidity Loan, the Interest Period with respect thereto.  The Administrative Agent shall promptly (and,
in any event, by 1:30 P.M. (New York City time) if the Administrative
Agent has received the Notice of Borrowing by 11:00 A.M. (New York City
time) from BAFC or the Depositary) give each Liquidity Bank telephonic notice
(confirmed in writing promptly thereafter) of such request.  Each Borrowing requested pursuant to subsection
3.01(a)(v) shall be in an amount equal to at least $10,000,000 and
multiples of $1,000,000 in excess thereof (or if the then Aggregate Available
Liquidity Commitment is less than $10,000,000, such lesser amount).  Each Borrowing pursuant to subsections
3.01(a)(i), (ii), (iv) and (v) shall be made ratably by
the Liquidity Banks in proportion to each Liquidity Bank’s Percentage of the
Aggregate Liquidity Commitment.  No later
than 3:00 P.M. (New York City time) on the date on which a Liquidity Loan
is to be made, the Administrative Agent acting on behalf of the Liquidity Banks
will make available to BAFC in freely transferable Dollars and in immediately
available funds the Liquidity Loan received by the Administrative Agent from
the Liquidity Banks required to be made on such day by the Liquidity Banks by
remitting the proceeds of such Liquidity Loan to the Commercial Paper Account
(or with respect to Liquidity Loans made pursuant to subsection 3.01(a)(v),
to the Cash Collateral Account) for application by the Depositary in accordance
with the terms of the Depositary Agreement. 
BAFC may subsequently (prior to the occurrence and continuation of a
Mandatory Liquidation Event) elect to convert a Prime Rate Liquidity Loan to a
LIBOR Liquidity Loan, or to continue to maintain a LIBOR Liquidity Loan as a
LIBOR Liquidity Loan for an additional Interest Period, in accordance with the
procedures set forth in subsection 3.01(h) below.

 

(c)           Notwithstanding any other provision
hereof or of any other Transaction Document, no Liquidity Loan shall be made by
a Liquidity Bank to BAFC in a principal amount exceeding, together with the
aggregate principal amount of such Liquidity Bank’s then outstanding Liquidity
Loans, (i) such Liquidity Bank’s Percentage of the Aggregate Liquidity
Commitment minus (ii) the product of (x) such Liquidity Bank’s
Percentage of the Aggregate Liquidity Commitment, times (y) the Series 2000-1

 

6

 

Invested Percentage of Defaulted Loans reflected on
the most recent Daily Report (calculated by converting any Defaulted Loans
denominated in Approved Currencies other than Dollars into Dollars at the Rate
of Exchange).

 

(d)           Subject to Section 3.01(c),
Section 6.03 and 8.03(a) hereof, each Liquidity Loan
required to be made pursuant to Section 3.01(a)(i)-(iv) shall
be made by the Liquidity Banks notwithstanding the occurrence of any Mandatory
Liquidation Event.

 

(e)           BAFC hereby agrees that it shall use
the proceeds of each Liquidity Loan solely to make payments in respect of
maturing Commercial Paper or, in the case of Liquidity Loans made in the
circumstances set forth in subsection 3.01(a)(v), to fund advances under
the Series 2000-1 VFC Certificate.

 

(f)            Each Liquidity Loan shall mature and
become due and payable on the Liquidity Commitment Expiration Date (which
Liquidity Commitment Expiration Date, in the case of an Exiting Loan, shall be
the Liquidity Commitment Expiration Date with respect to which such Exiting
Loan is made, and not, for the avoidance of doubt, the Liquidity Commitment
Expiration Date as it may have been extended by the other Liquidity Banks
pursuant to Section 4.03) or, if earlier, the date on which a
Mandatory Liquidation Event has occurred and the Administrative Agent shall
have declared the Liquidity Loans due and payable.  In addition, each Liquidity Loan shall be
repaid in accordance with Section 5.02 hereof and Articles V
and VI of the Security Agreement.

 

(g)

 

(i)            After receiving telephonic notice
(confirmed in writing promptly thereafter) from the Administrative Agent of a
Notice of Borrowing, each Liquidity Bank (or solely an Exiting Bank in the case
of an Exiting Loan) shall make available to the Administrative Agent, at its
office in New York, New York in immediately available funds, prior to 2:30 P.M.,
New York City time, on the day such telephonic notice is received, with respect
to any Borrowing consisting of a Prime Rate Liquidity Loan, or three Business
Days after such telephonic notice is received, with respect to any Borrowing
consisting of a LIBOR Liquidity Loan, such Liquidity Bank’s Percentage of such
Liquidity Loan (or amount of Exiting Loan, as applicable) required to be made
on such day; provided, however, that with respect to any
Liquidity Bank that is assigned a short-term credit rating below “A-1” or “P-1”
by S&P or Moody’s, respectively, the Administrative Agent shall draw on any
letter of credit or other similar instrument issued by a bank that is
confirming such Liquidity Bank’s obligation to make such Liquidity Loans prior
to 2:30 p.m., New York City time, on the day such Liquidity Loan is
required to be made as set forth above. 
Each Liquidity Bank shall indemnify and hold harmless the Administrative
Agent from and against any and all losses, liabilities (including liabilities
for penalties), actions, suits, judgments, demands, costs and expenses (including,
without limitation, attorneys’ fees and expenses) resulting from any failure on
the part of such 

 

7

 

Liquidity Bank to provide the Administrative Agent
with such Liquidity Bank’s Percentage of any Liquidity Loan (or amount of
Exiting Loan, as applicable) paid by the Administrative Agent in accordance
with the provisions of subsections 3.01(a)(i)-(iv) and any
Liquidity Bank that shall fail to fund its Percentage of such Liquidity Loan
shall pay interest on any such shortfall at the daily Federal Funds Effective
Rate until such amount has been paid.

 

(ii)           With respect to any Borrowing
requested to be made pursuant to subsection 3.01(a)(v), unless the
Administrative Agent shall have been notified in writing by any Liquidity Bank
prior to 2:30 P.M., New York City time, on the day such Borrowing is to be
made that such Liquidity Bank will not make available to the Administrative
Agent its Percentage of such Borrowing, the Administrative Agent may assume that
such Liquidity Bank will make such amount available to the Administrative Agent
on the date of such Borrowing, and the Administrative Agent may, in reliance
upon such assumption, make available to BAFC a corresponding amount. If such
amount is not made available to the Administrative Agent at or before the
required time on the date of such Borrowing, such Liquidity Bank shall pay to
the Administrative Agent, on demand, such amount, with interest thereon at a
rate equal to the daily Federal Funds Effective Rate for the period from and
including the date of such Borrowing to the date such Liquidity Bank makes such
amount immediately available to the Administrative Agent.  If such Liquidity Bank’s Percentage of such
Borrowing is not made available to the Administrative Agent by such Liquidity
Bank within three (3) Business Days after the date of such Borrowing, the
Administrative Agent also shall be entitled to recover such amount from BAFC,
together with interest from the date such amount was made available to BAFC at
the rate per annum then applicable to such Borrowing hereunder.

 

(h)           In the event BAFC wishes to convert
an existing LIBOR Liquidity Loan to a Prime Rate Liquidity Loan, BAFC shall
give telephonic (confirmed in writing promptly thereafter) or written notice to
the Administrative Agent of such election by 1:00 p.m. (New York City
time) on the date at least one (1) Business Day prior to the date on which
BAFC specifies (in accordance with this Section 3.01(h)) that such
conversion is to take effect; provided, that any such conversion of
LIBOR Liquidity Loans may only be made on the last day of the Interest Period
with respect thereto. In the event BAFC wishes to convert an existing Prime
Rate Liquidity Loan to a LIBOR Liquidity Loan or to continue an existing LIBOR
Liquidity Loan as a LIBOR Liquidity Loan for an additional Interest Period,
BAFC shall give telephonic (confirmed in writing promptly thereafter) or
written notice to the Administrative Agent of such election (A) in the
case of a conversion, by 1:00 p.m. (New York City time) on the date at
least three (3) Business Days prior to the date on which BAFC specifies
(in accordance with this subsection 3.01(h)) that such conversion is to
take effect, or (B) in the case of a continuation, by 1:00 p.m. (New
York City time) on the date at least three (3) Business Days prior to the
last day of the applicable Interest Period. 
In the event BAFC fails to 

 

8

 

timely give the notice of election described above, or
if a Mandatory Liquidation Event shall have occurred, an existing Prime Rate
Liquidity Loan shall continue as a Prime Rate Liquidity Loan, and an existing
LIBOR Liquidity Loan shall, at the end of the Interest Period applicable
thereto, convert to a Prime Rate Liquidity Loan thereafter (subject to later
election of BAFC in accordance with this subsection 3.01(h)).  The term “Interest Period” means the
period with respect to a LIBOR Liquidity Loan commencing (x) in the case
of the first Interest Period with respect to an initial Borrowing of such LIBOR
Liquidity Loan, on the Liquidity Loan disbursement date, (y) in the case
of conversion of a Prime Rate Liquidity Loan to a LIBOR Liquidity Loan, on the
date of conversion and (z) in all other cases, on the last day of the
immediately preceding Interest Period, and ending on the date one (1), two (2),
three (3) or six (6) month(s) thereafter as selected by BAFC in
the Notice of Borrowing or notice of conversion; provided, however,
that:

 

(i)            BAFC may not select an Interest
Period that extends beyond the Liquidity Commitment Expiration Date;

 

(ii)           whenever the last day of any Interest
Period would otherwise be a day that is not a Business Day, the last day of
such Interest Period shall be extended to the next succeeding Business Day, provided,
however, that, if such extension would cause the last day of such
Interest Period to occur in the following calendar month, the last day of such
Interest Period shall be the immediately preceding Business Day; and

 

(iii)          for purposes of determining an
Interest Period, a month means a period starting on one day in a calendar month
and ending on the numerically corresponding day in the next calendar month; provided,
however, that if there is no numerically corresponding day in the month
in which such Interest Period is to end or if such Interest Period begins on
the last Business Day of a calendar month, then such Interest Period shall end
on the last Business Day of the calendar month in which such Interest Period is
to end.

 

SECTION 3.02       The
Liquidity Loan Notes.

 

(a)           BAFC’s obligation to pay the
principal of and interest on all the Liquidity Loans made by each Liquidity
Bank or, in the case of an Exiting Loan, by an Exiting Bank, shall be evidenced
by a single note of BAFC with respect to each such Liquidity Bank (or Exiting
Bank, as the case may be) (each, a “Liquidity Loan Note” and
collectively, the “Liquidity Loan Notes”) which shall: (1) be dated
the date such Liquidity Bank becomes a party to this Agreement; (2) be in
the stated principal amount equal to the relevant Liquidity Bank’s Percentage
of the Aggregate Liquidity Commitment (as the same may be decreased pursuant to
Section 4.02 or 4.03 hereof); (3) bear interest as
provided in Section 3.03 hereof; (4) be payable on the earlier
of the Liquidity Commitment Expiration Date and the date on which a Mandatory
Liquidation Event has occurred and the Administrative Agent shall have declared
the Liquidity Loan Note to be due and payable; (5) be entitled to the
benefits of this Agreement, the 

 

9

 

Guaranty, the Letter of Credit and the Security
Agreement; and (6) be substantially in the form of Exhibit A
to this Agreement with blanks appropriately completed in conformity herewith.  Each Liquidity Bank shall, and is hereby
authorized to, make a notation on the schedule attached to its Liquidity Loan
Note (or on a continuation of such schedule), or in the records of such
Liquidity Bank, of the date and amount of the payment of principal thereon
(which notations shall, in absence of evidence to the contrary, be presumptive
evidence of the outstanding principal amount thereof) and prior to any transfer
of its Liquidity Loan Note, such Liquidity Bank shall endorse the outstanding principal
amount of such Liquidity Loan Note on the schedule attached thereto; provided,
however, that the failure to make such a notation shall not adversely
affect such Liquidity Bank’s rights with respect to the Liquidity Loans.

 

(b)           Although the Liquidity Loan Note of
each Liquidity Bank shall be dated the date such Liquidity Bank becomes a party
to this Agreement, interest in respect thereof shall be payable only for the
periods during which Liquidity Loans are outstanding thereunder.  In addition, although the stated principal
amount of the Liquidity Loan Note shall be equal to the related Liquidity Bank’s
Percentage of the Aggregate Liquidity Commitment, such Liquidity Loan Note
shall be enforceable with respect to BAFC’s obligation to pay the principal
thereof only to the extent of the unpaid principal amount of the Liquidity
Loans outstanding thereunder at the time such enforcement shall be sought.

 

SECTION 3.03       Interest.

 

(a)           BAFC shall pay interest prior to
maturity, and prior to the occurrence of a Mandatory Liquidation Event, on the
unpaid principal amount of each LIBOR Liquidity Loan from and including the
first day of the Interest Period applicable to such LIBOR Liquidity Loan to but
excluding the last day of such Interest Period (or, if occurring earlier, to
maturity, whether by acceleration or otherwise), at a rate per annum
(calculated on the basis of actual days elapsed in a year of 360 days) equal to
the Series 2000-1 Applicable Margin plus the LIBOR Rate in effect from
time to time, payable as provided in subsection 3.03(b) herein.  Prior to maturity and prior to the occurrence
of a Mandatory Liquidation Event, BAFC shall pay interest on the unpaid
principal amount of each Prime Rate Liquidity Loan from and including the date
such Liquidity Loan is made (or converted to a Prime Rate Liquidity Loan) to
but excluding the date such Liquidity Loan is converted to a LIBOR Liquidity
Loan (or, if occurring earlier, to maturity, whether by acceleration or
otherwise), at a rate per annum (calculated on the basis of actual days elapsed
in a year of 365 or 366 days, as the case may be) equal to the ABR in effect
from time to time plus the Series 2000-1 Applicable Margin.

 

(b)           BAFC agrees to pay interest in
respect of the unpaid principal amount of and interest on, each Liquidity Loan
after maturity thereof (whether by acceleration or otherwise) or during the
continuance of a Mandatory Liquidation Event, until paid in full at a rate per
annum equal to the sum of (i) 2.0%, plus (ii) the interest
rate 

 

10

 

then in effect with respect to such Liquidity Loan,
plus (iii) the Series 2000-1 Applicable Margin then in effect.

 

(c)           Accrued interest in respect of each
Liquidity Loan shall be payable in arrears on (i) with respect to any
LIBOR Liquidity Loan having an Interest Period of three months or less, the
last day of such Interest Period, (ii) with respect to any LIBOR Liquidity
Loan having an Interest Period longer than three months, each day that is three
months, or a whole multiple thereof, after the first day of such Interest
Period and the last day of such Interest Period, (iii) with respect to any
Prime Rate Liquidity Loan, the last day of each March, June, September and
December to occur while such Prime Rate Liquidity Loan is outstanding and (iv) with
respect to any Liquidity Loan, on the date of any prepayment (with respect to
the amount prepaid), on the date of conversion of such Liquidity Loan, at
maturity (whether by acceleration, demand or otherwise) and after such
maturity, on demand.

 

SECTION 3.04       Responsibilities
of Each Liquidity Bank.  The failure
of any Liquidity Bank to make any advance to be made by it as part of any
Liquidity Loan shall not relieve any other Liquidity Bank of its obligation
hereunder to make its advance on the date of such Liquidity Loan, but no
Liquidity Bank shall be responsible for the failure of any other Liquidity Bank
to make the Liquidity Loan to be made by such Liquidity Bank on the date of any
Liquidity Loan.

 

SECTION 3.05       Confirming
Letters of Credit.  The full amount
of each payment made to the Administrative Agent under any confirming letter of
credit issued on behalf of any Liquidity Bank pursuant to the terms hereof,
shall be applied to such Liquidity Bank’s obligation to make the Liquidity
Loans in respect of which such drawing is made to the same extent as if the
amount thereof had been paid directly to the Administrative Agent by such
Liquidity Bank.  Each such payment shall
be deemed to satisfy such Liquidity Bank’s obligation to fund hereunder to the
extent of such payment.

 

ARTICLE
IV

OTHER CREDIT TERMS

 

SECTION 4.01       Fees.

 

(a)           Prior to the Liquidity Commitment
Expiration Date or the termination of the Aggregate Liquidity Commitment in
accordance with Section 8.03, BAFC agrees to pay to the
Administrative Agent for distribution to each Liquidity Bank pro rata in
accordance with their respective Percentage of the Aggregate Liquidity
Commitment, a fee (the “Commitment Fee”) which shall accrue on each day
in an amount equal to the product of (i) the Unused Fee Rate times (ii) the
excess of the average Aggregate Liquidity Commitment on such day over the
average outstanding principal balance of any Liquidity Loans on such day.  The Commitment Fee shall be paid quarterly in
arrears commencing on the Distribution Date in December, 2000.

 

11

 

(b)           BAFC shall indemnify each Liquidity
Bank against, and on demand reimburse each Liquidity Bank for, any loss,
premium, penalty or expense which such Liquidity Bank may pay or incur
(including, without limitation, any loss or expense incurred by reason of the
relending, depositing or other employment of funds acquired by such Liquidity
Bank to fund a Liquidity Loan) as a result of (i) any failure by BAFC to
borrow a Liquidity Loan on a date specified therefor in a Notice of Borrowing
(whether or not withdrawn), or to continue as, or convert a LIBOR Liquidity
Loan in accordance with the related notice, (ii) any prepayment of a LIBOR
Liquidity Loan prior to the end of the applicable Interest Period pursuant to Section 5.02
hereof or purchase of a LIBOR Liquidity Loan pursuant to subsection 4.05(d) hereof
(including but not limited to any loss on the reemployment of funds) or (iii) any
failure by BAFC to prepay a Liquidity Loan on a date specified therefor in a
notice of prepayment pursuant to Section 5.02 hereof.  Each Liquidity Bank shall furnish BAFC with a
certificate prepared in good faith setting forth the basis for determining any
additional amount to be paid to it hereunder, and such certificate shall be
conclusive, absent manifest error, as to the contents thereof.

 

(c)           BAFC agrees to pay the Administrative
Agent for its own account the fees set forth in any fee letter between BAFC and
the Administrative Agent in full force and effect as of the date hereof and at
the times set forth in such fee letter.

 

SECTION 4.02       Termination
or Reduction of the Aggregate Liquidity Commitment.

 

(a)           Subject to this subsection 4.02(a),
BAFC shall have the right, at any time and from time to time to (i) terminate
the Aggregate Liquidity Commitment in whole or (ii) permanently reduce the
Aggregate Liquidity Commitment in increments of $1,000,000 and integral
multiples of $1,000,000 in excess thereof, without penalty, by giving at least
three (3) Business Days’ prior written notice to the Administrative Agent
and the Depositary specifying the scheduled date (which shall be a Business
Day) of such termination or reduction and the amount of any permitted partial
reduction.  The termination or reduction
of the Aggregate Liquidity Commitment shall be effective on the scheduled date
specified in BAFC’s notice; provided, however, that no such
termination of the Aggregate Liquidity Commitment shall be effective if, on the
scheduled date thereof, any Liquidity Loan would remain outstanding after such
scheduled date, in which case such termination shall be effective on the first
Business Day on which no Liquidity Loans shall be outstanding; provided,
further, that no such reduction in the Aggregate Liquidity Commitment
shall be effective if, on the scheduled date thereof, the Credits Outstanding
would exceed the Aggregate Available Liquidity Commitment as so reduced; and provided
further, that no termination of the Aggregate Liquidity Commitment shall
be effective if, on the scheduled date thereof, any Commercial Paper shall be
outstanding in which case such termination shall be effective on the first
Business Day on which no Commercial Paper shall be outstanding.  After giving notice of termination of the
Aggregate Liquidity Commitment pursuant to this subsection 

 

12

 

4.02(a),
BAFC shall not make any further advances under the Series 2000-1 VFC
Certificate.

 

(b)           In the event that (i) an
injunction suspending the issuance of the Commercial Paper shall have been
issued or proceedings therefor shall have been initiated by the Securities and
Exchange Commission, or (ii) BAFC, any Liquidity Bank, a Placement Agent
or any other Person shall have been found in a judicial or administrative
proceeding to have violated the Securities Act in connection with the issuance
of the Commercial Paper, or (iii) BAFC, any Liquidity Bank, a Placement
Agent or any other Person shall have offered, issued or sold to or solicited
any offer to acquire any of the Commercial Paper or any part thereof from
anyone so as to bring the issuance and sale of the Commercial Paper within the
registration and prospectus delivery requirements of Section 5 of the
Securities Act, then, in any of such events, BAFC shall not thereafter issue or
sell any Commercial Paper without the Administrative Agent’s written approval
and the Person affected by one of the aforesaid events shall notify BAFC, the
Depositary, each Placement Agent, the Letter of Credit Agent and the
Administrative Agent, as the case may be.

 

(c)           In the event that BAFC has received
notice that any Collateral Account, the Collection Account, the Commercial
Paper Account, the Special Payment Account or any funds on deposit in, or
otherwise to the credit of, any of such accounts are or have become subject to
any stay, writ, order, judgment, warrant, attachment, execution or similar
process, then in any of such events (until such event has been remedied), BAFC
shall promptly notify each Placement Agent of such event and shall not
thereafter issue or sell any Commercial Paper without the Administrative Agent’s
written approval.

 

SECTION 4.03       Extensions
of the Aggregate Liquidity Commitment.

 

(a)           Subject to subpart (b) and (c) of
this Section 4.03 and other provisions of this Agreement permitting
earlier termination, the Aggregate Liquidity Commitment and this Agreement
shall terminate on the Liquidity Commitment Expiration Date.

 

(b)           On any Business Day which is at least
forty-five (45) days prior to the then-current Liquidity Commitment Expiration
Date, BAFC may notify the Administrative Agent in writing of BAFC’s desire to
extend the Liquidity Commitment Expiration Date, whereupon the Administrative
Agent shall notify each Liquidity Bank of such desire of BAFC.  Each Liquidity Bank shall have the right, in
its sole discretion after a new credit review, to determine whether to extend
the Liquidity Commitment Expiration Date with respect to its Percentage of the
Aggregate Liquidity Commitment.  The
Administrative Agent shall initially notify BAFC, the Collateral Agent and the
Depositary of the decisions of the Liquidity Banks regarding such extension no
later than twenty-five (25) days before the then-current Liquidity Commitment
Expiration Date and if it has not provided such notification, such failure
shall be deemed to be a rejection of extension of such Liquidity Commitment
Expiration Date.

 

13

 

If such initial notice indicates that all the
Liquidity Banks desire to extend, then BAFC, the Liquidity Banks and the
Administrative Agent shall execute such documents as shall be appropriate to
evidence the extension no later than three (3) Business Days prior to the
then-current Liquidity Commitment Expiration Date, and upon execution and
delivery of such documents and delivery by the Administrative Agent to the
Depositary of written notice of such extension, the Liquidity Commitment
Expiration Date shall be so extended.  If
the Administrative Agent’s initial notice described above indicates that not
all the Liquidity Banks desire to extend, then the provisions of subsection
4.03(c) below shall apply.

 

(c)           If any Liquidity Bank does not
consent to the extension of a Liquidity Commitment Expiration Date pursuant to subsection
4.03(b) hereof, BAFC shall, with the consent of the Administrative
Agent, use its best efforts to obtain a successor Liquidity Bank(s) to
assume each such non-extending Liquidity Bank’s Percentage of the Aggregate
Liquidity Commitment at any time prior to or as of the Liquidity Commitment
Expiration Date at BAFC’s option, upon payment in full to such non-extending
Liquidity Bank of all its outstanding Liquidity Loans and all interest, fees
and other obligations owed by BAFC to such Liquidity Bank hereunder and receipt
of written confirmation from the Series 2000-1 Rating Agencies that the
addition of such successor Liquidity Bank(s) will not result in any
reduction in or withdrawal of the rating of the Commercial Paper.  To the extent BAFC is unable to obtain a
successor Liquidity Bank, BAFC may:

 

(i)            to the extent that the reduction of
the Aggregate Liquidity Commitment provided for in this clause (i) does
not cause the Aggregate Liquidity Commitment to fall below the outstanding Face
Amount of the Commercial Paper, remove such non-extending Liquidity Bank(s) as
a Liquidity Bank(s) and reduce the Aggregate Liquidity Commitment by an
amount equal to such non-extending Liquidity Bank’s Percentage of the Aggregate
Liquidity Commitment; or

 

(ii)           to the extent that the reduction of
the Aggregate Liquidity Commitment provided for in this clause (ii) causes
the Aggregate Liquidity Commitment to fall below the outstanding Face Amount of
the Commercial Paper, remove all such non-extending Liquidity Banks (each, an “Exiting
Bank” and collectively, the “Exiting Banks”) as a Liquidity Bank or
Liquidity Banks and reduce the then-existing Aggregate Liquidity Commitment by
an amount equal to the sum of each Exiting Bank’s Percentage of the Aggregate
Liquidity Commitment; provided, that, notwithstanding anything else
herein or in the Security Agreement to the contrary, (A) each Exiting Bank
shall make a Liquidity Loan to BAFC (an “Exiting Loan”) as provided in subsection
3.01(a)(iii) of this Agreement, and the proceeds of such Exiting Loan
shall be applied by BAFC to repay a corresponding amount of Commercial Paper as
it matures, and (B) such Exiting Loan shall only be repayable and repaid
in accordance with Section 5.2 of the Security Agreement from
Collections on any day no greater than an amount 

 

14

 

equal to all Collections deposited on such day in the
Cash Collateral Account times a fraction, the numerator of which is the initial
principal amount of such Exiting Loan and the denominator of which is the sum
of the initial principal amounts of all Exiting Loans, until such Exiting Loan
is repaid in full (provided, however, that if any other Liquidity
Bank subsequently exits pursuant to this clause (ii) prior to the
repayment in full of such Exiting Loan, such fraction shall be recalculated on
the basis of the principal amount of such Exiting Loan at such time over the
sum of such principal amount and the initial principal amounts of all Exiting
Loans at such time).

 

If a Liquidity Commitment Expiration Date is to be
extended in accordance with the provisions above and (if applicable) one or
more successors are obtained, BAFC, the Liquidity Banks willing to extend such
Liquidity Commitment Expiration Date, the Administrative Agent and such
successor Liquidity Bank(s) (if applicable) shall sign such documents and
instruments as shall be appropriate to evidence the extension of such Liquidity
Commitment Expiration Date and (if applicable) such successor Liquidity Bank’s
or Liquidity Banks’ assumption of a non-extending Liquidity Bank’s Percentage of
the Aggregate Liquidity Commitment.  Upon
the execution and delivery of such documents and instruments, such Liquidity
Commitment Expiration Date shall be so extended.

 

SECTION 4.04       Proceeds.  The proceeds of Commercial Paper shall be
used by BAFC to (i) make advances under the Series 2000-1 VFC
Certificate to the extent permitted by the Transaction Documents and (ii) repay
maturing Commercial Paper or Liquidity Loans. 
The proceeds of the Liquidity Loans shall be used by BAFC only to make
payments in respect of maturing Commercial Paper and, in the circumstances set
forth in subsection 3.01(a)(v), to make advances under the Series 2000-1
VFC Certificate to the extent permitted by the Transaction Documents.

 

SECTION 4.05       Increased
Costs; Capital Adequacy.

 

(a)           If, on or after the date of this
Agreement, the adoption of any law or regulation, or any change therein, or any
change in the interpretation or administration thereof by any court,
administrative or governmental authority, central bank or comparable agency
charged with the interpretation or administration thereof or compliance by any
Liquidity Bank with any request or directive issued after the date hereof
(whether or not having the force of law) of any such authority, central bank or
comparable agency shall either:

 

(i)            impose, modify or deem applicable
any reserve, special deposit or similar requirement against (or against any
class of, a change in or in the amount of) assets or liabilities of, or
commitments or extensions of credit by, any Liquidity Bank;

 

(ii)           shall subject any Liquidity Bank to
any tax of any kind with respect to this Agreement, the Liquidity Loan Notes or
any Liquidity Loan 

 

15

 

made by it, or change the basis of taxation of payments
to such Liquidity Bank in respect thereof (except for changes in the rate or
the basis of tax on the overall net income of such Liquidity Bank); or

 

(iii)          impose on any Liquidity Bank any other
condition regarding this Agreement or its Liquidity Commitment,

 

and the result of any event referred to in clause (i)-(iii) above
shall be to increase the cost to any Liquidity Bank of issuing or maintaining
its Liquidity Commitment or its LIBOR Liquidity Loans or to reduce the amounts
receivable by any Liquidity Bank hereunder (which increase in cost or reduction
in amounts receivable shall be the result of any Liquidity Bank’s reasonable
allocation of the aggregate of such cost increase or reductions resulting from
such events), then, upon written demand by any Liquidity Bank, BAFC shall,
within ten (10) Business Days of receipt of such demand, be obligated to
pay to such Liquidity Bank, from time to time as specified by such Liquidity
Bank, additional amounts which in the aggregate shall be sufficient to compensate
such Liquidity Bank for such increased cost or reduction, together with
interest on each such amount from the date demanded until payment in full
thereof at a rate per annum equal to the lesser of (A) the Legal Rate or (B) ABR.  A certificate setting forth in reasonable
detail such increased cost incurred or reduction in amounts receivable by any
Liquidity Bank as a result of any event mentioned in clause (i), (ii) or (iii) of
this subsection, submitted by any Liquidity Bank to BAFC, shall, unless otherwise
required by law, be conclusive, absent manifest error, as to the amount
thereof.  Each Liquidity Bank shall give
BAFC and the Administrative Agent notice, within a reasonable period of time of
such Liquidity Bank having actual knowledge of the occurrence of any event that
will entitle such Liquidity Bank to claim the payment of additional amounts
under this subsection 4.05(a). Notwithstanding the foregoing, BAFC shall
not be required to pay any Liquidity Bank, as applicable, such additional
amounts to the extent such amounts relate to periods prior to one hundred and
twenty (120) days of BAFC’s receipt of such demand; provided that, if
such change in law giving rise to such increased cost or reduction is
retroactive, then the one hundred and twenty (120) day period shall be extended
to include the period of retroactive effect thereof.

 

(b)           If any of the events requiring
payments of additional amounts by BAFC under subsection (a) occurs, each
Liquidity Bank shall take such steps as may be reasonable to avoid BAFC being
required to pay any additional amounts and shall consult with BAFC in good
faith with a view to agreeing to alternative arrangements which would not
subject such Liquidity Bank to any unreimbursed cost and would not otherwise be
disadvantageous to such Liquidity Bank, whereby any such requirement can be
avoided or mitigated, including without limitation, fulfilling any such
Liquidity Bank’s obligations through another branch or affiliate.

 

(c)           If any Liquidity Bank shall have
determined that on or after the date hereof, the adoption of any applicable
law, rule or regulation regarding capital adequacy, or any change therein,
or any change in the interpretation or administration thereof by any
governmental authority, central bank or comparable agency charged with 

 

16

 

the interpretation or administration thereof, or
compliance by any Liquidity Bank or any corporation controlling such Liquidity
Bank with any request or directive regarding capital adequacy (whether or not
having the force of law) of any such authority, central bank or comparable
agency, has or would have the effect of reducing the rate of return on the
capital of such Liquidity Bank or such corporation as a consequence of the
Liquidity Commitment or its obligations hereunder or under any participation
agreement to a level below that which such Liquidity Bank or such corporation
could have achieved but for such adoption, change or compliance (taking into
consideration the policies of such Liquidity Bank or such corporation with
respect to capital adequacy) by an amount deemed by such Liquidity Bank to be
material, then from time to time, within ten (10) Business Days after
demand by such Liquidity Bank, BAFC shall be obligated to pay or cause to be
paid to such Liquidity Bank such additional amount or amounts as will
compensate such Liquidity Bank for such reduction.  Each Liquidity Bank shall give BAFC and the
Administrative Agent notice within a reasonable time of such Liquidity Bank having
actual knowledge of the occurrence of any event that will entitle the Liquidity
Bank to claim the payment of additional amounts under this subsection
4.05(c).  Notwithstanding the
foregoing, BAFC shall not be required to pay any Liquidity Bank, as applicable,
such additional amounts to the extent such amounts relate to periods prior to
one hundred and twenty (120) days of BAFC’s receipt of such demand; provided
that, if such change in law giving rise to such reduction is retroactive, then
the one hundred and twenty (120) day period shall be extended to include the
period of retroactive effect thereof.

 

(d)           If any Liquidity Bank on its own
behalf makes a demand for amounts owed under this Section 4.05,
BAFC shall have the right, if no event then exists which is or with the lapse
of time or notice or both would be a Mandatory Liquidation Event, within ninety
(90) days of the date of such demand, to remove such Liquidity Bank (the “Affected
Person”) and to designate another lender (the “Replacement Person”)
reasonably acceptable to the Administrative Agent and meeting the requirements
of Section 11.05 hereof to purchase the Affected Person’s
outstanding Liquidity Loans and to assume the Affected Person’s obligations
under this Agreement; provided that increased costs incurred by such
Liquidity Bank prior to the date of its replacement shall have been paid as
provided in the previous paragraph; and provided  further, that
BAFC first receives confirmation from the Series 2000-1 Rating Agencies
that such replacement will not result in the reduction or withdrawal of the
rating of the Commercial Paper.  The
Affected Person agrees to sell to the Replacement Person its outstanding
Liquidity Loans (at par, with accrued interest through the date of purchase, in
immediately available funds) and to delegate to the Replacement Person its
obligations to BAFC and its future obligations to the Administrative Agent
under this Agreement.  Upon such sale and
delegation by the Affected Person and the purchase and assumption by the
Replacement Person, and compliance with the provisions of Section 11.05
hereof, the Affected Person shall cease to be a Liquidity Bank hereunder and
the Replacement Person shall become a Liquidity Bank under this Agreement.  Each Affected Person shall 

 

17

 

continue to be entitled to receive from BAFC its share
of interest, fees, costs and other sums which have not been assigned by the
Affected Person to the Replacement Person.

 

(e)           Notwithstanding anything in this
Agreement to the contrary, it is understood that any Participant shall be
entitled to the payment of increased costs under this Section 4.05
and Section 4.06 hereof to the extent such increased costs would
have been required to be paid had no participating interest been sold.

 

SECTION 4.06       Taxes.

 

(a)           All payments made by BAFC under this
Agreement shall be made free and clear of, and without reduction for or on
account of, any present or future stamp or other taxes, levies, imposts,
duties, charges, fees, deductions, withholdings, restrictions or conditions of
any nature whatsoever now or hereafter imposed, levied, collected, withheld or
assessed by any country (or by any political subdivision or taxing authority
thereof or therein), excluding income and franchise taxes now or hereafter
imposed on the overall net income of any Liquidity Bank (such non-excluded
taxes being called “Tax” or “Taxes”).  If any Taxes are required under applicable
law to be withheld from any amounts payable to any Liquidity Bank hereunder,
the amounts so payable to any such Liquidity Bank shall be increased to the
extent necessary to yield to any such Liquidity Bank (after payment of all
Taxes) interest or any such other amounts payable hereunder at the rates or in
the amounts specified in this Agreement. 
Whenever any Tax is payable by BAFC, as promptly as possible thereafter,
BAFC shall send any such Liquidity Bank an original official receipt showing
payment thereof.

 

(b)           If and to the extent that the effect
of subsection (a) can be mitigated by virtue of the provisions of United
States federal income tax law or any applicable double-tax convention, the
applicable Liquidity Banks shall submit to BAFC: (i) any necessary forms
required for the purpose of ensuring the application of any double-tax
convention or (ii) a properly executed Form W-8BEN or Form W-8ECI
(or successor form to either).

 

SECTION 4.07       Addition,
Removal and Downgrading of Liquidity Banks. 
If at any time the short-term credit rating assigned to any Liquidity Bank
by S&P or Moody’s is withdrawn, downgraded or otherwise below “A-1” or “P-1”,
respectively, and with respect to any such Liquidity Bank there is not a
confirming obligation under a letter of credit or other similar instrument to
fund Liquidity Loans hereunder by a bank that has been assigned a short-term
credit rating of at least “A-1” and “P-1” by S&P and Moody’s, respectively,
then BAFC may, upon five (5) Business Days’ prior written notice given to
the Administrative Agent and such affected Liquidity Bank, replace such
affected Liquidity Bank with a bank having short-term ratings of at least “A-1”
by S&P and “P-1” by Moody’s or with a Liquidity Bank already a party to
this Agreement (which bank shall sign such documents and instruments as shall
be appropriate to assume the obligations of such affected Liquidity Bank
hereunder), provided that no such replacement pursuant to this sentence
shall be effective unless each Series 2000-1 Rating Agency shall have
confirmed in writing to BAFC and the Administrative Agent 

 

18

 

that such replacement would not result in a withdrawal or reduction of
the rating by such Series 2000-1 Rating Agency of the Commercial
Paper.  In the event that such affected
Liquidity Bank is not replaced within thirty (30) days, such affected Liquidity
Bank’s Percentage of the Aggregate Liquidity Commitment and its Liquidity
Commitment shall be reduced by such amount whereupon the Percentages of the
Aggregate Liquidity Commitment of the Liquidity Banks remaining shall be
automatically adjusted so as to equal 100% in the aggregate, and the
Administrative Agent shall notify the Liquidity Banks of such adjustment, provided
that in no event shall any such action under this sentence be effective
hereunder if the Credits Outstanding would exceed the Aggregate Available
Liquidity Commitment as so reduced unless the provisions of subsection
4.03(c)(ii) are complied with as if such affected Liquidity Bank were
an Exiting Bank.  Until such time as one
of the actions required by the preceding provisions of this Section hereof
is completed, the affected Liquidity Bank’s Percentage of the Aggregate
Liquidity Commitment shall not be terminated.

 

SECTION 4.08       Illegality.  If, after the date of this Agreement, the
introduction of, or any change in, any applicable law, rule or regulation
or in the interpretation or administration thereof by any Governmental
Authority shall, in the reasonable opinion of counsel to any Liquidity Bank,
make it unlawful for such Liquidity Bank to make or maintain any LIBOR
Liquidity Loan, then such Liquidity Bank may, by notice to BAFC (with notice to
the Administrative Agent), immediately declare that such LIBOR Liquidity Loan
shall be due and payable.  BAFC shall
repay any such LIBOR Liquidity Loan declared so due and payable in full on the
last day of the Interest Period applicable thereto or earlier if required by
law, together with accrued interest thereon. 
Each Liquidity Bank will promptly notify BAFC and the Administrative Agent
of any event of which such Liquidity Bank has knowledge which would entitle it
to prepayment pursuant to this Section 4.08 and will use its
reasonable efforts to mitigate the effect of any event if, in the sole and
absolute opinion of such Liquidity Bank, such efforts will avoid the need for
such prepayment and will not be otherwise disadvantageous to such Liquidity
Bank.

 

SECTION 4.09       Unavailability
of LIBOR Liquidity Loans.  If, with
respect to any LIBOR Liquidity Loan requested by BAFC, the Administrative Agent
or the Majority Liquidity Banks shall have determined in good faith (which
determination shall, save for manifest error, be conclusive and binding upon
BAFC and the Liquidity Banks) that (a) deposits of sufficient amount and
maturity for funding such LIBOR Liquidity Loan are not available to the
Liquidity Banks in the relevant market in the ordinary course of business, (b) by
reason of circumstances affecting the relevant market, adequate and fair means
do not exist for ascertaining the rate of interest to be applicable to such
LIBOR Liquidity Loan or (c) the rate of interest to be applicable to such
LIBOR Liquidity Loan does not adequately reflect the cost of funding such
Liquidity Loan, as determined by the Majority Liquidity Banks, then (i) the
Administrative Agent, upon its determination as provided above or upon
receiving notice from the Majority Liquidity Banks as to their determination as
provided above, shall promptly give notice thereof to BAFC, (ii) the
notice requesting such LIBOR Liquidity Loan shall be canceled, and (iii) no
Liquidity Bank shall be under any obligation to make additional LIBOR Liquidity

 

19

 

Loans to BAFC unless and until the Administrative Agent shall have
notified BAFC that LIBOR Liquidity Loans are again available hereunder.

 

ARTICLE
V

PAYMENTS

 

SECTION 5.01       Payments
on Non-Business Days.  Whenever any
payment to be made hereunder or under a Liquidity Loan Note shall be stated to
be due on a day which is not a Business Day, the due date thereof shall be
extended to the next succeeding Business Day and interest shall be payable at
the applicable rate during such extension.

 

SECTION 5.02       Prepayments.

 

(a)           BAFC shall have the right to prepay
the Liquidity Loans in whole or in part, without premium (but subject to subsection
4.01(b)), at any time on the following terms and conditions:  (i) BAFC shall deliver notice to the
Administrative Agent no later than 10:00 a.m., New York City time, (A) with
respect to any LIBOR Liquidity Loan, three (3) Business Days prior to such
repayment date and (B) with respect to any Prime Rate Liquidity Loan, on
the date of such repayment, (ii) each prepayment shall be in a principal
amount of not less than $1,000,000 and integral multiples of $1,000,000 in
excess thereof or equal to the then outstanding principal amount of the
Liquidity Loans being prepaid and (iii) each prepayment must be
accompanied by the payment of accrued interest on the amount prepaid to the
date of prepayment.

 

(b)           If, on any day, the Credits
Outstanding exceeds the then current Aggregate Available Liquidity Commitment,
BAFC shall be obligated to prepay Liquidity Loans in an amount equal to such
excess but not exceeding the amount of such Liquidity Loans made by the Liquidity
Banks to BAFC.

 

(c)           If on any day on which any Liquidity
Loan is outstanding (other than a Liquidity Loan made pursuant to subsection
3.01(a)(v)) BAFC is able to sell Commercial Paper, BAFC shall be obligated
to sell Commercial Paper in an amount sufficient to prepay Liquidity Loans in
an amount equal to the lesser of (x) the aggregate amount of Liquidity
Loans outstanding or (y) the proceeds from the sale of the maximum amount
of Commercial Paper that BAFC is able to sell on such day in excess of the proceeds
needed to pay Commercial Paper maturing on such day.

 

SECTION 5.03       Cash
Collateral Account.  For the purpose
of facilitating the transactions contemplated by this Agreement, the Collateral
Agent has established on behalf of BAFC a special purpose trust account (for
the benefit of the Secured Parties), identified as the BAFC Cash Collateral
Account, the operation of which shall be governed by the Security Agreement
(said account being referred to as the “Cash Collateral Account”).

 

20

 

SECTION 5.04         Method and Place of Payment, etc.  All payments by BAFC under this Agreement and
the Liquidity Loan Notes owing to the Liquidity Banks shall be made to the
Administrative Agent without setoff or counterclaim for distribution to each
Liquidity Bank (or to an Exiting Bank, in the case of an Exiting Loan) in
accordance with the Liquidity Facility Fee Letter and the Liquidity Loan Notes
not later than 2:00 p.m. (New York City time) on the date when due and
shall be made in freely transferable Dollars and in immediately available funds
at the Payment Office.  Upon receipt of
such payment, the Administrative Agent shall promptly remit to each Liquidity
Bank its pro rata share (or, in the case of payments with respect to Exiting
Loans, the entire amount) of the payment.

 

SECTION 5.05         Draws on and Exchange of the Letter
of Credit.

 

(a)           Draws
for Defaulted Loans.  If, on any
given day, the Administrative Agent has received a Servicer’s Certificate with
respect to a Defaulted Loan with instructions to draw on the Letter of Credit
or the Administrative Agent otherwise obtains knowledge of the existence of a
Defaulted Loan, the Administrative Agent will draw on the Letter of Credit on
such date and if necessary, request the Collateral Agent to withdraw amounts
deposited in the Reserve Account on such date in an aggregate amount equal to
the lesser of (x) the Series 2000-1 Invested Percentage of the
aggregate unpaid principal amount and accrued and unpaid interest (or discount)
thereon to and including the day prior to the day the Loan has become a
Defaulted Loan (calculated by converting any Defaulted Loans denominated in
Approved Currencies other than Dollars into Dollars at the Rate of Exchange)
and (y) the Letter of Credit Amount then in effect and shall deposit and
apply the draw amount in accordance with subsection 5.05(c) hereof
and shall instruct the Collateral Agent to reimburse the Letter of Credit Banks
for such draw in accordance with the terms of the Security Agreement; provided
that, if the required draw is made pursuant to clause (y) above, the
Administrative Agent shall, upon receipt of notice from the Collateral Agent of
payment of the Repayment Amount to the Letter of Credit Bank, submit as
promptly as practicable a successive draw on the Letter of Credit for the
lesser of (i) the amount of such excess principal plus accrued and unpaid
interest (or discount) on such Defaulted Loan (calculated by converting any
Defaulted Loans denominated in Approved Currencies other than Dollars into
Dollars at the Rate of Exchange) over the Letter of Credit Amount prior to
giving effect to the first draw or (ii) the entire remaining reinstated
Letter of Credit Commitment then available.

 

(b)           Draws
Upon L/C Expiration Date.  If the L/C
Expiration Date has not been extended by any Letter of Credit Bank pursuant to Section 2.01
of the Letter of Credit Reimbursement Agreement on or before such date and if
the Administrative Agent has received from the Servicer a Servicer’s
Certificate directing it to do so or the Administrative Agent otherwise obtains
knowledge that the L/C Expiration Date has not been extended by any Letter of
Credit Bank and either each Exiting Letter of Credit Bank has not been replaced
or the Letter of Credit Commitment has not been reduced in accordance with subsection
2.01(d) of the Letter of Credit Reimbursement Agreement, 

 

21

 

then the
Administrative Agent shall, on or after the fifth Business Day preceding the
upcoming L/C Expiration Date, draw on the Letter of Credit for the entire
Letter of Credit Commitment Shares of each Exiting Letter of Credit Bank and
apply same in accordance with subsection 5.05(c)(ii) hereof.

 

(c)           Deposits
of Letter of Credit Drawings.  The
Administrative Agent shall deposit all Letter of Credit Disbursements as
follows:

 

(i)            Deposit
of Draws for Defaulted Loans.  Letter
of Credit Disbursements pursuant to subsection 5.05(a) hereof
related to Defaulted Loans shall be deposited into the Cash Collateral Account
to be applied to the payment of Liquidity Bank Obligations in accordance with Sections
5.2 and 6.2 of the Security Agreement.

 

(ii)           Deposit
of Draws Upon L/C Expiration Date. 
Letter of Credit Disbursements drawn pursuant to subsection 5.05(b) hereof
shall be deposited into the Reserve Account. 
Thereafter, the Administrative Agent shall, upon receipt of a Servicer’s
Certificate or upon obtaining knowledge of the existence of a Defaulted Loan,
in lieu of drawing on the Letter of Credit with respect to any Exiting Letter
of Credit Bank, request withdrawals from the Collateral Agent out of the
Reserve Account of draw amounts with respect to Defaulted Loans and deposit of
such amounts by the Collateral Agent into the Cash Collateral Account.  The Administrative Agent shall provide notice
to BAFC and the Servicer as promptly as practicable of the fact and amount of
such drawings.

 

(d)           Notification
of Drawings.  The Administrative
Agent shall deliver a copy of each drawing certificate presented to the Letter
of Credit Agent to BAFC, the Servicer, the Guarantor and the Collateral Agent
within one Business Day after presenting such drawing certificate.

 

(e)           Notification
of Failure of Letter of Credit Bank to Honor Drawing. The Administrative
Agent shall notify BAFC, the Guarantor, the Servicer and the Collateral Agent
as promptly as practicable if any Letter of Credit Bank should fail or refuse
to honor a drawing under the Letter of Credit.

 

(f)            Replacement
Letter of Credit.  The Administrative
Agent shall present the Letter of Credit to the Letter of Credit Agent and
receive the replacement Letter of Credit from the Letter of Credit Bank in a
simultaneous exchange on the date requested by BAFC pursuant to subsection
2.01(c) of the Letter of Credit Reimbursement Agreement.  In addition, if the Letter of Credit is to be
replaced pursuant to subsection 2.01(e) of the Letter of Credit
Reimbursement Agreement, the Administrative Agent shall present the Letter of
Credit to the Letter of Credit Agent and receive the replacement Letter of
Credit on the date specified in BAFC’s request to the Letter of Credit Agent in
accordance with such subsection 2.01(e). 
Upon receipt of such replacement Letter of 

 

22

 

Credit, or upon
receipt of an amended Letter of Credit pursuant to such subsection 2.01(e),
the Administrative Agent shall notify BAFC, the Servicer and the Collateral
Agent by telephone, and shall subsequently transmit a facsimile of such amended
or replacement Letter of Credit to said parties.

 

(g)           Letter
of Credit Amount.  On each day prior
to and on the Liquidity Commitment Expiration Date, the sum of (i) the
amount of funds on deposit in the Reserve Account and (ii) the amount of
the Letter of Credit that is in full force and effect shall equal the Letter of
Credit Commitment; provided, however, that upon the downgrade or
removal of S&P’s and Moody’s long-term unsecured debt rating of the
Guarantor, BLFC or the Trust which requires the Letter of Credit Commitment to
be increased in accordance with subsection 2.01(e) of the Letter of
Credit Reimbursement Agreement, BAFC shall have thirty (30) days to either (x) obtain
a substitute Letter of Credit or an amendment to the existing Letter of Credit
reflecting the Letter of Credit Commitment as so increased or (y) deposit
additional funds in the Reserve Account in an amount equal to the amount by
which the Letter of Credit Commitment is required to be increased.  Following the deposit by BAFC of any amounts
in the Reserve Account, the Administrative Agent may, upon receipt of a
Servicer’s Certificate or upon obtaining knowledge of the existence of a
Defaulted Loan, request withdrawals from the Collateral Agent out of the
Reserve Account of draw amounts with respect to Defaulted Loans and deposit of
such amounts by the Collateral Agent into the Cash Collateral Account.  The Administrative Agent shall provide notice
to BAFC and the Servicer as promptly as practicable of the fact and amount of
such drawings.

 

ARTICLE VI

CONDITIONS PRECEDENT

 

SECTION 6.01         Conditions to Effectiveness.  This Agreement shall become effective on the
first day on which all of the following conditions have been satisfied:

 

(a)           Agreement.  Each Liquidity Bank, the Administrative Agent
and BAFC shall have signed a counterpart copy of this Agreement and delivered
the same to the Administrative Agent.

 

(b)           Depositary
Agreement.  BAFC and the Depositary
shall have executed and delivered the Depositary Agreement; such Agreement
shall be in full force and effect; and the Administrative Agent shall have
received a fully executed counterpart thereof.

 

(c)           The
Liquidity Loan Notes.  There shall
have been delivered to the Administrative Agent for the account of each
Liquidity Bank a Liquidity Loan Note payable to the order of such Liquidity
Bank in the amount and as otherwise provided for in Article III hereto.

 

23

 

(d)           Security
Agreement.  BAFC, the Servicer, the
Administrative Agent, the Letter of Credit Agent and the Collateral Agent shall
have executed and delivered the Security Agreement; such Agreement shall be in
full force and effect; and the Administrative Agent shall have received a fully
executed counterpart thereof.

 

(e)           Guaranty.  The Guarantor shall have executed and delivered
the Guaranty; the Guaranty shall be in full force and effect; and the
Administrative Agent shall have received a fully executed counterpart thereof.

 

(f)            Letter
of Credit Reimbursement Agreement. 
BAFC, the Letter of Credit Agent and the Letter of Credit Banks shall
have executed and delivered the Letter of Credit Reimbursement Agreement; such
Agreement shall be in full force and effect; and the Administrative Agent shall
have received a fully executed counterpart thereof.

 

(g)           Letter
of Credit.  The Letter of Credit
Agent and the Letter of Credit Banks shall have executed the Letter of Credit
and delivered it to the Administrative Agent; the Letter of Credit shall be in
full force and effect.

 

(h)           Other
Agreements.  Each of the other
parties thereto shall have executed and delivered the Placement Agency
Agreement and each of the other Transaction Documents, each of which shall be
in full force and effect, and the Administrative Agent shall have received
fully executed counterparts thereof.

 

(i)            No
Series 2000-1 Early Amortization Event or Potential Series 2000-1
Early Amortization Event.  As of the
date hereof, there shall exist no Series 2000-1 Early Amortization Event
or Potential Series 2000-1 Early Amortization Event.

 

(j)            Representations
and Warranties.  All representations
and warranties of (i) BAFC contained in this Agreement and in the other
Transaction Documents or in any document, certificate or financial or other
statement delivered in connection herewith or therewith and (ii) the
Servicer, the Guarantor and the Company contained in the Transaction Documents,
shall be true and correct with the same force and effect as though such
representations and warranties had been made as of the date hereof.

 

(k)           Opinions
of Counsel.  The Administrative Agent,
each Liquidity Bank, the Letter of Credit Agent, BAFC and each Placement Agent
shall have received (i) from Winston & Strawn LLP, counsel for
the Servicer and New York counsel for the Guarantor, a favorable opinion dated
the date hereof covering the matters as such parties shall reasonably request, (ii) from
Conyers Dill and Pearman, Bermuda counsel for the Guarantor, a favorable
opinion dated the date hereof covering the matters as such parties shall
reasonably request and (iii) from Winston & Strawn LLP, counsel
for BAFC, a favorable opinion dated the date hereof covering the matters as
such parties shall reasonably request.

 

24

 

(l)            Closing
Certificates.  The Administrative
Agent shall have received in sufficient counterparts for each Liquidity Bank a
certificate, dated the date hereof and executed by a Responsible Officer of
each of BAFC, the Company and the Servicer stating that all of the conditions
specified in Section 6.01(i) as applicable to it are then
satisfied.

 

(m)          Filings,
etc.  All filings (including, without
limitation, pursuant to the UCC) and recordings shall have been accomplished
with respect to the Security Agreement in such jurisdictions as may be required
or permitted by law to establish, perfect, protect and preserve the rights,
titles, interests, remedies, powers, privileges, liens and security interests
of the Collateral Agent in the collateral covered by the Security Agreement and
any giving of notice or the taking of any other action to such end (whether
similar or dissimilar) required or permitted by law shall have been given or
taken.  On or prior to the Series 2000-1
Issuance Date, BAFC and the Collateral Agent shall have received copies of (i) UCC
searches from the New York Secretary of State (and applicable local UCC
searches), each showing no liens as to BAFC, and (ii) satisfactory
evidence as to any such filing, recording, registration, giving of notice or
other action so taken or made.

 

(n)           Documentation
and Proceedings.  The Administrative
Agent shall have received copies of the Certificate of Incorporation of BAFC
(certified by the Secretary of State of Delaware), certificates of appropriate
officials as to the existence and good standing (if applicable) of BAFC and the
Guarantor, and Bylaws of BAFC, Board of Directors resolutions in respect of the
Transaction Documents to which BAFC or the Guarantor, as applicable, is a
party, and incumbency certificates with respect to BAFC and the Guarantor, all
satisfactory in form and substance to the Administrative Agent.

 

(o)           Bank
Accounts.  The Cash Collateral
Account, the Commercial Paper Account and the Special Payment Account shall
have been established.

 

(p)           Compliance
with Laws.  The Administrative Agent
shall have received evidence reasonably satisfactory to it that the business
conducted and proposed to be conducted by BAFC is in compliance with all
applicable laws and regulations and that all registrations, filings, licenses
and/or consents required to be obtained by BAFC in connection therewith have
been made or obtained.

 

(q)           Other
Conditions Precedent.  The conditions
precedent to the Letter of Credit Reimbursement Agreement shall have been
satisfied concurrently.

 

(r)            Fees.  The Administrative Agent shall have received
payment of all fees and other amounts due and payable to it or the Liquidity
Banks on or before the date hereof.

 

25

 

(s)           BAFC
Rating.  The Administrative Agent
shall have received a letter from S&P confirming its “A-1” rating of BAFC’s
commercial paper and a letter from Moody’s confirming its “P-1” rating of BAFC’s
commercial paper.

 

(t)            BL,
Trust and BLFC Rating.  The
Administrative Agent shall have received evidence reasonably satisfactory to it
that BL’s long-term unsecured debt rating is at least “BBB-” by S&P and
either the Trust’s or BLFC’s long-term unsecured debt rating is at least “Baa3”
by Moody’s.

 

(u)           Guarantor
Financials.  The Administrative Agent
shall have received (i) audited consolidated financial statements of BL
for its fiscal year ended December 31, 2006, and (ii) unaudited
consolidated financial statements for its fiscal quarter ended June 30,
2007.

 

SECTION 6.02         Conditions to Each Issuance of
Commercial Paper.  The right of BAFC
to issue Commercial Paper is subject at the time of such issuance of Commercial
Paper to the satisfaction of the following conditions listed in this Section 6.02
(in addition to the condition set forth in the proviso to Section 2.01(b))
with each issuance of Commercial Paper.

 

(a)           Ratings.  At the time of each issuance of Commercial
Paper, a rating of at least “A-1”, in the case of S&P, and at least “P-1”,
in the case of Moody’s, shall be in full force and effect.

 

(b)           Representations
and Warranties.  At the date of such
issuance of Commercial Paper and after giving effect thereto, all
representations and warranties of (i) BAFC contained in this Agreement and
in the other Transaction Documents or in any document, certificate or financial
or other statement delivered in connection herewith or therewith, unless waived
by the Administrative Agent and Letter of Credit Agent, and (ii) the
Servicer, the Guarantor and the Company contained in the Transaction Documents,
or in any document, certificate or financial or other statement delivered in
connection therewith, unless waived by the Administrative Agent and Letter of
Credit Agent, in each case shall be true and correct with the same force and
effect as though such representations and warranties had been made as of such
date.

 

(c)           Liquidity
Agreement.  The Liquidity Agreement
shall be in full force and effect on the date of such issuance of Commercial
Paper.

 

(d)           Private
Placement Memorandum.  Each credit
report, private placement memorandum or information circular to be used by BAFC
in connection with the offer or sale of the Commercial Paper shall, only
insofar as the same shall describe the Administrative Agent or the obligations
of the Administrative Agent hereunder, have been approved in writing by the
Administrative Agent or, only insofar as the same shall describe any Liquidity
Bank or the obligations of any Liquidity Bank hereunder, the Administrative
Agent shall obtain the prior written approval of such Liquidity Bank.

 

26

 

(e)           No
Mandatory Liquidation Event or Mandatory CP Wind-Down Event.  At the time of each issuance of Commercial
Paper and after giving effect thereto, (i) no Mandatory Liquidation Event
shall have occurred, and (ii) no Mandatory CP Wind-Down Event shall have
occurred with respect to which the Administrative Agent shall have instructed
the Depositary not to issue additional Commercial Paper.

 

SECTION 6.03         Conditions Precedent to the Making
of Each Liquidity Loan.  In addition
to the requirements of subsection 3.01(c) hereof, no Liquidity Bank
shall be required to make a Liquidity Loan if at or prior to the time of making
such Liquidity Loan an Insolvency Event (as described in clauses (i)-(iii) of
the definition of “Insolvency Event”) shall have occurred with respect to BAFC.

 

SECTION 6.04         Conditions to the Making of any
Liquidity Loan Pursuant to subsection 3.01(a)(v).  In addition to the requirements of subsection
3.01(c) and Section 6.03 hereof, no Liquidity Bank shall
be required to make a Liquidity Loan pursuant to subsection 3.01(a)(v) hereof
unless the following conditions are satisfied on each day on which such
Liquidity Loan is to be made:

 

(a)           Representations
and Warranties.  At the date on which
such Liquidity Loan is to be made and after giving effect to such Liquidity
Loan, all representations and warranties of (i) BAFC contained in this
Agreement and in the other Transaction Documents or in any document,
certificate or financial or other statement delivered in connection herewith or
therewith, unless waived by the Administrative Agent and (ii) the
Servicer, the Guarantor and the Company contained in the Transaction Documents,
or in any document, certificate or financial or other statement delivered in
connection therewith, unless waived by the Administrative Agent, in each case
shall be true and correct with the same force and effect as though such
representations and warranties had been made as of such date.

 

(b)           No
Mandatory Liquidation Event or Potential Mandatory Liquidation Event.  At the date on which such Liquidity Loan is
to be made and after giving effect to such Liquidity Loan, no Mandatory
Liquidation Event or Potential Mandatory Liquidation Event shall have occurred.

 

ARTICLE VII

COVENANTS

 

While this Agreement is
in effect (i.e., until all indebtedness and other amounts payable by BAFC
hereunder and under the Commercial Paper and the Liquidity Loan Notes shall
have been paid in full and the Liquidity Banks no longer have any Liquidity
Commitment hereunder), BAFC agrees that:

 

 

27

 

SECTION 7.01         Affirmative Covenants.  BAFC shall:

 

(a)           provide
the Administrative Agent all information that the Administrative Agent may
reasonably request in writing concerning the business of BAFC within a
reasonable period of time considering the nature of the request; provided
that with respect to any information relating to an annual audited report, the
same may be delivered within one hundred and twenty (120) calendar days after
the end of BAFC’s fiscal year;

 

(b)           furnish
or cause to be furnished to the Administrative Agent in sufficient number for
each Liquidity Bank, copies of all documents and other notices furnished to
BAFC under the Transaction Documents and to the Letter of Credit Agent under
the Letter of Credit Reimbursement Agreement;

 

(c)           execute
and deliver to the Administrative Agent and the Liquidity Banks all such
documents and instruments and do all such other acts and things as may be
necessary or reasonably required by the Administrative Agent to enable the
Collateral Agent or the Administrative Agent to exercise and enforce their
respective rights under this Agreement, the Letter of Credit Reimbursement
Agreement, the Letter of Credit, the Guaranty and the Security Agreement, and
to realize thereon, and record and file and rerecord and refile all such
documents and instruments, at such time or times, in such manner and at such
place or places, all as may be necessary or required by the Administrative
Agent to validate, preserve and protect the position of the Collateral Agent,
the Administrative Agent and the Liquidity Banks under this Agreement, the
Letter of Credit Reimbursement Agreement, the Letter of Credit, the Guaranty
and the Security Agreement;

 

(d)           take
all actions necessary to ensure that all taxes and other governmental claims in
respect of BAFC’s operations and assets are promptly paid when due, except
those contested in good faith;

 

(e)           comply
in all material respects with obligations it assumes under the Transaction
Documents;

 

(f)            comply
with all Requirements of Law except where the failure to so comply would not
reasonably be expected to have a material adverse effect on its ability to
perform its obligations under the Transaction Documents;

 

(g)           for
the benefit of the Administrative Agent and the Liquidity Banks, and for so
long as this Agreement shall be in effect, perform and comply with each of its
respective agreements, warranties and indemnities contained in this Agreement
and the other Transaction Documents;

 

28

 

(h)           give
prompt notice to the Administrative Agent of any material default or event of
default by any Obligor under any Loan or Loan Documents of which BAFC is aware;

 

(i)            advise
the Administrative Agent of the occurrence of each Default, Event of Default or
Mandatory CP Wind-Down Event as promptly as practicable after BAFC becomes
aware of any such Default, Event of Default or Mandatory CP Wind-Down Event,
and shall notify the Series 2000-1 Rating Agencies of any Mandatory CP Wind-Down
Event and Mandatory Liquidation Event;

 

(j)            beginning
with the fiscal year commencing in 2000, furnish to the Series 2000-1
Rating Agencies and the Administrative Agent in sufficient number for each
Liquidity Bank as soon as available, but in any event within one hundred and
twenty (120) days after the end of each fiscal year of BAFC audited financial
statements consisting of the balance sheet of BAFC as of the end of such year
and the related statements of income and retained earnings and statements of
cash flow for such year, setting forth in each case in comparative form the
corresponding figures for the previous fiscal year (provided that
comparative figures shall not be required with respect to such financial
statements delivered at the end of BAFC’s fiscal year ending in 2000),
certified by Independent Public Accountants satisfactory to the Administrative
Agent to the effect that such financial statements fairly present in all
material respects the financial condition and results of operations of BAFC in
accordance with GAAP consistently applied;

 

(k)           beginning
with the fiscal year commencing in 2000, furnish to the Series 2000-1
Rating Agencies and the Administrative Agent as soon as available but in any
event within sixty (60) days after the end of each of the first three quarters
for each fiscal year of BAFC, unaudited financial statements consisting of a
balance sheet of BAFC as at the end of such quarter and a statement of income
and retained earnings for such quarter, setting forth (in the case of financial
statements furnished for calendar quarters subsequent to the first full
calendar year of BAFC) in comparative form the corresponding figures for the
corresponding quarter of the preceding fiscal year; and BAFC will additionally
furnish, or cause to be furnished, to the Administrative Agent together with
the financial statements required pursuant to clause (j) and this clause (k) a
certificate of a Responsible Officer of BAFC stating that (x) the attached
financial statements have been prepared in accordance with GAAP and accurately
reflect the financial condition of BAFC and (y) to the best knowledge of
such Responsible Officer, no Mandatory CP Wind-Down Event or Mandatory
Liquidation Event was continuing at the end of such quarter or on the date of
such statement or, if such Mandatory CP Wind-Down Event or Mandatory
Liquidation Event was continuing at the end of such quarter or on the date of
such statement, specifying the name and period of existence thereof;

 

(l)            (i) except
as otherwise permitted by the Transaction Documents, preserve, renew and keep
in full force and effect its corporate existence and (ii) take all
reasonable action to maintain all rights, privileges and franchises necessary
or desirable 

 

29

 

in the normal
conduct of its business, except where the failure to maintain the same would
not have a Material Adverse Effect; and

 

(m)          on
each day after the Liquidity Loans (with accrued interest thereon) have become
due and payable (whether at the stated maturity, by acceleration or otherwise),
give the notice contemplated by Section 2.06 of the Series 2000-1
Supplement, such notice to specify an amount equal to the lesser of (i) the
funds on deposit in the Series 2000-1 Collection Subaccount on such day
and (ii) the outstanding amount of the Liquidity Loans (with accrued
interest thereon) and all other amounts owing under this Agreement.

 

SECTION 7.02         Negative Covenants.  BAFC will not:

 

(a)           contract
for, create, incur, assume or suffer to exist any Lien, security interest,
charge or other encumbrance of any nature upon any of its property or assets,
whether now owned or hereafter acquired except for Permitted Liens and as
otherwise provided for in the Security Agreement or the Depositary Agreement;

 

(b)           create,
incur, assume or suffer to exist any Indebtedness, whether current or funded,
or any other liability except Permitted Indebtedness;

 

(c)           except
as contemplated by the Transaction Documents, make any loan or advance or
credit to, or guarantee (directly or indirectly or by an instrument having the
effect of assuring another’s payment or performance on any obligation or
capability of so doing or otherwise), endorse or otherwise become contingently
liable, directly or indirectly, in connection with the obligations, stocks or
dividends of, or own, purchase, repurchase or acquire (or agree contingently to
do so) any assets, stock, obligations or securities of, or any other interest
in, or make any capital contribution to, any other Person;

 

(d)           enter
into any merger, consolidation, joint venture, syndicate or other form of
combination with any Person, or sell, lease or transfer or otherwise dispose of
any of its assets or receivables or purchase any asset, or engage in any
transaction which would result in a change of control of BAFC.  BAFC will not create any subsidiary of BAFC
without the prior written consent of the Administrative Agent;

 

(e)           enter
into or be a party to any agreement or instrument other than the Transaction
Documents or documents and agreements incidental thereto;

 

(f)            make
any expenditure (by long-term or operating lease or otherwise), excluding those
relating to foreclosure, for capital assets (both realty and personalty),
unless such expenditure is approved in writing by the Administrative Agent;

 

(g)           engage
in any business or enterprise or enter into any material transaction other than
as contemplated by the Transaction Documents;

 

30

 

(h)           amend
its Certificate of Incorporation or Bylaws without the prior written consent of
the Administrative Agent;

 

(i)            grant
any powers of attorney to any Person for any purposes except (i) where
permitted by the Transaction Documents or (ii) to the Collateral Agent for
the purposes of the Security Agreement;

 

(j)            except
with respect to Liquidity Loans made pursuant to subsection 3.01(a)(v),
advance any funds under the Series 2000-1 VFC Certificate if at such time
any Liquidity Loan remains outstanding;

 

(k)           advance
any funds under the Series 2000-1 VFC Certificate if at the time of or
after giving effect to such advance, a Series 2000-1 Early Amortization
Event has occurred and is continuing, unless such advance is approved in
advance by the Majority Liquidity Banks and the Majority Letter of Credit
Banks; or

 

(l)            take
any action which would permit the Servicer to have the right to refuse to
perform any of its respective obligations under the Servicing Agreement.

 

ARTICLE VIII

MANDATORY LIQUIDATION EVENTS, 

MANDATORY CP WIND-DOWN EVENTS AND REMEDIES

 

SECTION 8.01         Mandatory Liquidation Events.  Upon notice from the Administrative Agent
that any of the following events has occurred (each a “Mandatory Liquidation
Event”), the remedies of Section 8.03(a) hereof shall
apply:

 

(i)            Letter
of Credit.  The Letter of Credit has
not been reinstated within three (3) Business Days of any draw pursuant to
Section 5.05(a) hereof;

 

(ii)           Delinquent
Loans.  Any Loan constitutes a
Delinquent Loan for a period of more than three (3) successive Business
Days;

 

(iii)          Guarantor
or Designated Obligor Cross-Default. 
The Guarantor or any of the Designated Obligors shall (A) default
in the observance or performance of any agreement or condition relating to any
of its outstanding Indebtedness or contained in any instrument or agreement
evidencing, securing or relating thereto, 
the effect of which default is to cause or permit such Indebtedness to
become due prior to its stated maturity or (B) fail to pay when due any
material amounts due under any agreement to which any such Person is a party; provided,
however, that no Mandatory Liquidation Event shall be deemed to occur
under clause (A) or (B) of this paragraph unless the aggregate amount
of 

 

31

 

Indebtedness in
respect of which any payment default or other default referred to in this
paragraph shall have occurred shall be equal to at least $50,000,000;

 

(iv)          Insolvency.  An Insolvency Event shall occur with respect
to BAFC, the Guarantor, any Designated Obligor or the Company;

 

(v)           Change
of Control.  A Change of Control with
respect to the Guarantor shall occur;

 

(vi)          Investment
Company.  BAFC or the Guarantor shall
become an “investment company” within the meaning of the 1940 Act and shall not
be exempt from compliance with the 1940 Act;

 

(vii)         Judgments
Against BAFC.  Final, non-appealable
judgment or judgments for the payment of money in an aggregate amount in excess
of $50,000 shall have been rendered against BAFC and the same shall have
remained unsatisfied and in effect for any period of thirty (30) consecutive
days during which no stay of execution shall have been obtained;

 

(viii)        Commercial
Paper Payments.  Failure by BAFC to
pay or cause to be paid any amount in respect of Commercial Paper when due;

 

(ix)           Certain
Payments.  Failure by BAFC to pay or
cause to be paid (i) any of the fees described in Section 4.01
hereof when due within three (3) Business Days from the date due; (ii) fees
due under subsection 2.11(a) of the Letter of Credit Reimbursement
Agreement or any other amounts due under the Letter of Credit Reimbursement
Agreement within three (3) Business Days from the date due; (iii) any
Liquidity Loan under subsection 3.01(f) and Section 5.02
hereof on the date due; or (iv) interest on any Liquidity Loan within
three (3) Business Days of the date such interest is due;

 

(x)            Representations.  Any representation or warranty or other
written statement made or deemed made by BAFC, the Company or the Guarantor in
this Agreement or in any other Transaction Document or in any document entered
into in connection herewith or therewith, shall prove to have been incorrect
when made in any material respect;

 

(xi)           Covenants.  (a) Failure by BAFC, the Company or the
Guarantor to observe or perform any covenant or agreement contained in subsections
5.05(g), 7.01(i) and 7.01(l) hereof (with respect
to BAFC), subsections 2.06(g) and 2.06(j)(i) and (ii) of
the Pooling Agreement (with respect to the Company) and subsections 8.1(c)(i) and
(ii), 8.1(g)(i), 8.1(h), 8.1(i) and 8.2
of the Guaranty (with respect to the Guarantor); or (b) failure by BAFC,
the Company or the Guarantor to observe or perform any other covenant or
agreement contained herein or in any other Transaction Document to which it is
a 

 

32

 

party and not
constituting a Mandatory Liquidation Event under any other clause of this Article VIII
and the continuance of such default for thirty (30) days after the earlier of (x) the
date on which a Responsible Officer of BAFC, the Company or the Guarantor has
knowledge of such failure and (y) BAFC, the Company or the Guarantor
receives written notice thereof from the Administrative Agent;

 

(xii)          Default
Under Other Documents.  (a) A Series 2000-1
Early Amortization Event or a Potential Series 2000-1 Early Amortization
Event shall have occurred and be continuing or (b) an Early Amortization
Event described in Section 7.01 of the Pooling Agreement (without
taking into account any Supplements) shall occur;

 

(xiii)         Default
under the Guaranty.  The Guarantor
shall default under the Guaranty or the Guaranty shall have become invalid or
ineffective or the Guarantor or any affiliate thereof shall challenge its
effectiveness;

 

(xiv)        Judgments
Against Guarantor and Designated Obligors. 
One or more judgments for the payment of money (to the extent not bonded
or covered by insurance to the reasonable satisfaction of the Letter of Credit
Agent and the Administrative Agent) shall be rendered against the Guarantor or
any of the Designated Obligors or any combination thereof in an aggregate
amount greater than $50,000,000, and the same shall remain undischarged for a
period of thirty (30) consecutive days during which execution shall not be
effectively stayed, or any action shall be legally taken by a judgment creditor
to levy upon assets or properties of the Guarantor or any of the Designated
Obligors to enforce any such judgment and no stay of enforcement shall be in
effect;

 

(xv)         Effectiveness
of Other Documents.  Any of the
Transaction Documents shall cease, for any reason, to be in full force and
effect, or the Company, the Servicer, the Guarantor, the Sellers or BAFC shall
so assert in writing; or

 

(xvi)        Other
Cross-Defaults.  BLFC or any other
Investor Certificateholder that is an Affiliate of the Guarantor shall (i) default
in making any payment of any principal of any Indebtedness or of any material
amounts under any other agreement to which it is a party on the scheduled or
original due date with respect thereto; or (ii) default in making any
payment of any interest on any such Indebtedness beyond the period of grace, if
any, provided in the instrument or agreement under which such Indebtedness was
created; or (iii) default in the observance or performance of any other
agreement or condition relating to any such 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 is to cause, or to permit the holder or beneficiary of such
Indebtedness (or a trustee or agent on behalf of such holder or beneficiary) to
cause, with the giving of notice if 

 

33

 

required, such
Indebtedness to become due prior to its stated maturity or to become payable; provided,
that a default, event or condition described in clause (i), (ii) or (iii) of
this paragraph (xvi) shall not at any time constitute a Mandatory Liquidation
Event unless, at such time, one or more defaults, events or conditions of the
type described in clauses (i), (ii) and (iii) of this paragraph (xvi)
shall have occurred and be continuing with respect to Indebtedness or other
amounts the outstanding principal amount of which exceeds in the aggregate
$50,000,000; provided, further, that the immediately preceding
proviso shall be deemed inapplicable at any time that any Purchased Loan shall
constitute a Defaulted Loan or shall have constituted a Delinquent Loan for a
period of more than three (3) successive Business Days.

 

SECTION 8.02         Mandatory CP Wind-Down Events.  Upon the occurrence of any of the following
events (each a “Mandatory CP Wind-Down Event”), the remedies of Section 8.03(b) hereof
shall apply:

 

(a)           Guarantor’s
Adjusted Net Debt/Consolidated Adjusted Capitalization Ratio.  The ratio of the Guarantor’s consolidated
Adjusted Net Debt to consolidated Adjusted Capitalization (each as calculated
at the end of each fiscal quarter of the Guarantor) is greater than 0.585:1.0;
or

 

(b)           Guarantor’s
EBITDA.  The Guarantor’s consolidated
Adjusted EBITDA (as calculated on a rolling four quarter basis) is less than
$400,000,000.

 

SECTION 8.03         Remedies.

 

(a)           At
any time during the continuance of any Mandatory Liquidation Event and so long
as such Mandatory Liquidation Event shall continue unremedied, the
Administrative Agent, by written notice to BAFC, the Series 2000-1 Rating
Agencies, and the Depositary (with a copy to each Placement Agent and the
Collateral Agent), (i) shall instruct the Depositary not to issue or deliver
any additional Commercial Paper, and (ii) may, with the consent of the
Majority Liquidity Banks, and shall, at the written request of the Majority
Liquidity Banks, (A) declare the principal of and accrued interest in
respect of the Liquidity Loan Notes to be, whereupon the same shall become,
forthwith due and payable without presentment, demand, protest or further
notice of any kind, all of which are hereby expressly waived by BAFC, anything
contained herein or in the Liquidity Loan Notes to the contrary
notwithstanding, and/or (B) subject to the immediately following sentence
declare the Aggregate Liquidity Commitment terminated, whereupon the Aggregate
Liquidity Commitment and the obligation of the Liquidity Banks to make the
Liquidity Loans hereunder shall terminate immediately and any accrued fees or
premiums shall forthwith become due and payable without any further notice of
any kind and/or (C) instruct BAFC to, and in such event BAFC shall,
instruct the Trustee to declare the principal of and accrued interest in
respect of the Purchased Loans to be due and payable (provided that, for the
avoidance of doubt, BAFC acknowledges and agrees that if it fails to give such
instructions, the Administrative

 

34

 

Agent may do so on
its behalf).  Notwithstanding the
previous sentence, upon the occurrence of a Mandatory Liquidation Event
described in subsection 8.01(iv) with respect to BAFC, the
Guarantor or the Company or in subsection 8.01(xii)(b), the Aggregate Liquidity
Commitment shall terminate automatically, and all amounts payable to the
Liquidity Banks and the Liquidity Agent hereunder and under the Liquidity Loan
Notes, whether for principal, interest, fees, expenses or otherwise, shall
automatically become forthwith due and payable without presentment, demand,
protest or any notice of any kind, all of which are hereby expressly
waived.  Anything herein to the contrary
notwithstanding, no declaration or termination of the Aggregate Liquidity
Commitment pursuant to the foregoing provisions of this Article VIII shall
affect the obligation of the Liquidity Banks to make Liquidity Loans with
respect to Commercial Paper issued, authenticated and delivered by the
Depositary prior to receipt of instructions from the Administrative Agent to
cease issuing Commercial Paper as provided in subsection 2.01(a) hereof;
provided the conditions set forth in subsection 3.01(c) and Section 6.03
hereof are satisfied at the time of the making of any such Liquidity Loan.

 

(b)           At
any time during the continuance of a Mandatory CP Wind-Down Event and so long
as such Mandatory CP Wind-Down Event shall continue unremedied, (i) the
Administrative Agent shall, by written notice to BAFC, the Series 2000-1
Rating Agencies, and the Depositary (with a copy to each Placement Agent and
the Collateral Agent), instruct the Depositary not to issue or deliver any
additional Commercial Paper and (ii) subject to the terms and conditions
herein (and provided that a Mandatory Liquidation Event shall not have occurred
which has not been waived by the Majority Liquidity Banks), the Liquidity Banks
shall make Liquidity Loans to BAFC on a revolving basis pursuant to subsections
3.01(a)(i) and 3.01(a)(v) hereof.

 

ARTICLE IX

REPRESENTATIONS AND WARRANTIES

 

In order to induce the
Liquidity Banks to enter into this Agreement and to provide the credit facility
provided for herein, BAFC makes the following representations and warranties to
the Liquidity Banks:

 

SECTION 9.01       Corporate Existence.  BAFC is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware, has full
corporate power and authority to own its assets and to transact the business in
which it is now engaged and is duly qualified as a foreign corporation and in
good standing under the laws of each jurisdiction in which its business or
activities requires such qualification. 
BAFC has no subsidiaries.

 

SECTION 9.02       Corporate Power; Authorization;
Enforceable Obligation.  BAFC has the
corporate power, authority and legal right to execute, deliver and perform the
Transaction Documents and to borrow hereunder and has taken all necessary
corporate action to authorize the borrowings on the terms and conditions hereof
and the execution, delivery and performance of the Transaction Documents.  No consent, license, permit, approval or 

 

35

 

authorization of, exemption by, notice or report to,
or registration, filing or declaration with, any Governmental Authority is
required for the execution, delivery and performance by BAFC of the Transaction
Documents which has not been obtained, made, given or accomplished.  This Agreement and the other Transaction
Documents, including the Liquidity Loan Notes, have been executed and delivered
by a duly authorized officer of BAFC, and each of the Transaction Documents
constitutes and, in the case of Commercial Paper, when executed and issued in
accordance with the provisions hereof and of the Depositary Agreement, will
constitute, a legal, valid and binding obligation of BAFC enforceable against
BAFC in accordance with its respective terms except that the enforceability
thereof may be subject to the effects of any applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect
relating to creditors’ rights and by general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at
law).

 

SECTION 9.03       No Legal Bar.  The execution, delivery and performance by
BAFC of the Transaction Documents will not violate any provision of any
existing law or regulation applicable to BAFC, or of any order, judgment, award
or decree of any court, arbitrator or governmental authority applicable to BAFC
or the Certificate of Incorporation or Bylaws of BAFC or any mortgage,
indenture, lease, contract or other agreement, instrument or undertaking to
which BAFC is a party or by which BAFC or any of its assets may be bound, and
will not, except as otherwise provided herein or under any of the other
Transaction Documents, result in, or require, the creation or imposition of any
Lien on any of its property, assets or revenues pursuant to the provisions of
any such mortgage, indenture, lease, contract or other agreement, instrument or
undertaking.

 

SECTION 9.04       No Material Litigation.  No litigation, investigation or
administrative proceeding of or before any court, arbitrator or Governmental
Authority is pending nor, to BAFC’s knowledge, threatened against BAFC or any
of its assets (a) with respect to the Transaction Documents or the
Borrowings hereunder or (b) that, if determined adversely, would have a
material adverse effect on the business, operations, assets, financial
condition or prospects of BAFC or (c) that would have a material adverse
effect on the ability of BAFC to perform under the Transaction Documents or on
the rights and remedies of the Administrative Agent, the Collateral Agent and
the Liquidity Banks thereunder.

 

SECTION 9.05       Security Interest.

 

(a)           (i) No
effective financing statement listing BAFC as debtor (other than any which may
have been filed on behalf of the Collateral Agent) covering any of the Assigned
Collateral is on file in any public office; (ii) at the date of each
deposit of monies in each Collateral Account, BAFC was, is or will then be the
lawful owner of, and had, has or will then have good title to, such monies,
free and clear of all Liens except the lien and security interest granted
pursuant to the Security Agreement in favor of the Collateral Agent; and (iii) BAFC
is and will be the lawful owner of, and has and will have good and marketable
title to, all Assigned Collateral, free and clear of all Liens 

 

36

 

except the lien
and security interest granted pursuant to the Security Agreement in favor of
the Collateral Agent and Permitted Liens.

 

(b)           BAFC
has not previously created any security interest which remains in effect in the
Assigned Collateral, any Collateral Account or the funds deposited therein or
any part thereof and will keep the Assigned Collateral, each Collateral Account
and the funds deposited therein and every part thereof free and clear of all
Liens except the lien and security interest granted pursuant to the Security
Agreement in favor of the Collateral Agent and Permitted Liens.

 

(c)           The
Security Agreement creates a valid Lien on the Assigned Collateral in favor of
the Secured Parties and such lien is prior in right to any other Liens and is
enforceable as such against creditors of and purchasers from BAFC except to the
extent foreclosure of such Lien may be limited by applicable bankruptcy,
insolvency, moratorium or other similar laws affecting creditors’ rights
generally.

 

SECTION 9.06       Commercial Paper; Investment Company
Act.  The qualification of an
indenture with respect to Commercial Paper under the Trust Indenture Act of
1939, as amended, is not required in connection with the offer, issuance, sale
or delivery of Commercial Paper.  BAFC is
not an “investment company”, or a company “controlled” by an “investment
company” within the meaning of the 1940 Act.

 

SECTION 9.07       Securities Act.  The offer, issuance, sale or delivery of the
Commercial Paper in accordance with the terms hereof and the Depositary
Agreement will constitute exempted transactions under the Securities Act, and
registration of the Commercial Paper under the Securities Act will not be
required in connection with any such offer, issuance, sale or delivery of the
Commercial Paper.

 

SECTION 9.08       Accuracy of Information.  All Monthly Settlement Statements, Daily
Reports, financial statements, records, and other information furnished by or
on behalf of BAFC, the Servicer or the Guarantor to the Administrative Agent or
any Liquidity Bank hereunder shall be accurate in all material respects as of
their respective date.

 

SECTION 9.09       Taxes and ERISA Liability.  BAFC has paid all of its Taxes when due
except those Taxes the liability for which (i) BAFC has contested in good
faith in appropriate proceedings and for which adequate reserves are maintained
in accordance with GAAP or (ii) could not reasonably be expected to result
in a Material Adverse Effect.  BAFC has
no ERISA plan liability and is not subject to the requirements of ERISA.

 

SECTION 9.10       Federal Regulations.  No part of the proceeds of any Liquidity
Loans will be used for “buying” or “carrying” any “margin stock” within the
respective meanings of each of the quoted terms under Regulation U 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 Liquidity Bank or the Administrative Agent, BAFC
will furnish to the Administrative Agent and each Liquidity Bank a statement to
the foregoing effect in conformity 

 

37

 

with the requirements of FR Form G-3 or FR Form U-1,
as applicable, referred to in Regulation U.

 

SECTION 9.11       No Change.  Since December 31, 2006, there has been
no development or event that has had or could reasonably be expected to have a
Material Adverse Effect.

 

SECTION 9.12                       Solvency.  BAFC is, and after giving effect to the
incurrence of all Indebtedness and obligations being incurred in connection
herewith will be and will continue to be, Solvent.

 

ARTICLE X

THE ADMINISTRATIVE AGENT AND THE LIQUIDITY BANKS

 

SECTION 10.01     Appointment of the Administrative Agent.  Each Liquidity Bank hereby irrevocably
appoints JPMorgan Chase Bank, N.A. as its Administrative Agent hereunder, under
the Guaranty, under the Letter of Credit Reimbursement Agreement, under the
Letter of Credit and under the Security Agreement and hereby authorizes the
Administrative Agent to take such action on its behalf to execute, deliver and
perform such documents on its behalf, and to exercise such rights, remedies,
powers and privileges hereunder or thereunder as are specifically authorized to
be exercised by the Administrative Agent by the terms hereof or thereof,
together with such rights, remedies, powers and privileges as are reasonably
incidental thereto.  The Administrative
Agent may execute any of its duties hereunder and under the Security Agreement
by or through agents or employees, and the Administrative Agent shall not be
responsible for the negligence or misconduct of any such agents or employees
selected by it with reasonable care.  The
relationship between the Administrative Agent and each Liquidity Bank is that
of agent and principal only, and nothing herein shall be deemed to constitute
or appoint the Administrative Agent a trustee or fiduciary for any Liquidity
Bank or impose on the Administrative Agent any obligations other than those for
which express provision is made herein, under the Guaranty, under the Letter of
Credit Reimbursement Agreement, under the Letter of Credit or in the Security
Agreement.  Upon receipt, the
Administrative Agent will forward to each Liquidity Bank (a) an executed
copy of the Transaction Documents, (b) a copy of each Monthly Settlement
Statement and Daily Report, and (c) a copy of each financial statement,
accountant’s certification and officer’s certificate specified in Section 7.01
hereof and in Section 8.1 of the Guaranty.

 

The Administrative Agent
shall not have any duty to exercise any right, power, remedy or privilege
granted to it hereby or thereby, or to take any affirmative action or exercise
any discretion hereunder or thereunder, including, without limitation, the
right of the Administrative Agent to instruct the Depositary not to issue or
deliver Commercial Paper under the provisions of subsection 2.01(a) hereof
and the Depositary Agreement, unless directed to do so by all the Liquidity
Banks or the Majority Liquidity Banks, as applicable (and shall be fully
protected in acting or refraining from acting pursuant to such directions which
shall be binding 

 

38

 

upon the Liquidity
Banks), shall not, without the prior approval of all the Liquidity Banks
consent to any reduction of the Letter of Credit Commitment pursuant to Section 2.01(d)(i) of
the Letter of Credit Reimbursement Agreement, and shall not, without the prior
approval of all the Liquidity Banks or the Majority Liquidity Banks, as
applicable, consent to any material departure by BAFC or the Depositary from
the terms hereof or thereof, waive any default on the part of any such party
under any such agreement or instrument or amend, modify, supplement or
terminate, or agree to any surrender of, any such agreement or instrument; provided,
that the foregoing limitation on the authority of the Administrative Agent is
for the benefit of the Liquidity Banks and shall not impose any obligation on
BAFC to investigate or inquire into the authority of the Administrative Agent
in any circumstances, and BAFC shall be fully protected in carrying out any
request, direction or instruction made or given to BAFC by the Administrative
Agent in the exercise of any right, power, remedy or privilege granted to the
Administrative Agent hereby or by the terms of any other Transaction Document,
receiving or acting upon any consent or waiver granted to BAFC hereunder or
thereunder by the Administrative Agent, or entering into any amendment or
modification of, or supplement to, this Agreement or any other Transaction
Document, and BAFC shall not be subject to the claims of any Liquidity Bank by
reason of the lack of authority of the Administrative Agent to take any such
action nor shall the lack of authority on the part of the Administrative Agent
in any circumstance give rise to any claim on the part of BAFC against any
Liquidity Bank; and provided, further, that the Administrative
Agent shall not be required to take any action which exposes the Administrative
Agent to personal liability or which is contrary to this Agreement, or
applicable law.

 

Neither the Administrative
Agent nor any Liquidity Bank, nor any of its or their respective directors,
officers, agents or employees, shall be liable to any person or entity,
including without limitation, the Administrative Agent, any Liquidity Bank, or
any Program Party, as the case may be, for any action taken or omitted to be
taken by it or them hereunder, under any other Transaction Document, or in
connection herewith or therewith, except for any liability determined, in a
final judgment of a court of competent jurisdiction to have resulted from the
Administrative Agent’s or such Liquidity Bank’s own gross negligence or willful
misconduct; nor shall the Administrative Agent or any Liquidity Bank be
responsible to the Administrative Agent or any other Liquidity Bank, as the
case may be, for the validity, effectiveness, value, sufficiency or
enforceability against any Program Party, of any Transaction Document or other
document furnished pursuant hereto or thereto or in connection herewith or
therewith.  The Administrative Agent
shall not be liable under this Agreement to BAFC or the Guarantor or their
respective directors, officers, agents, employees or members, or any Secured
Party or its directors, officers, agents, employees or stockholders for
indirect, special, punitive, incidental or consequential loss or damage of any
kind whatsoever, including, without limitation, lost profits.  Without limitation of the generality of the
foregoing, the Administrative Agent: (i) may consult with legal counsel
(including counsel for BAFC), independent public accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be
taken in good faith by it in accordance with or in reliance upon the advice of
such counsel, accountants or experts; (ii) makes no warranty or
representation to any Liquidity Bank and shall not be responsible to any
Liquidity Bank for any statements, warranties or representations made in or in 

 

39

 

connection with
this Agreement, any other Transaction Document or any other document furnished
pursuant hereto or thereto or in connection herewith or therewith; (iii) shall
not have any duty to ascertain or to inquire as to the performance or
observance of any of the terms, covenants or conditions of this Agreement, any
other Transaction Document or any other document furnished pursuant hereto or
thereto or in connection herewith or therewith, on the part of any party hereto
or thereto or to inspect the property (including the books and records) of
BAFC, the Guarantor or any other Program Party; (iv) shall not be
responsible to any Liquidity Bank for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement, any other
Transaction Document or any other instrument or document furnished pursuant
hereto or thereto; (v) shall incur no liability under or in respect of
this Agreement, any other Transaction Document or any other document furnished
pursuant hereto or thereto or in connection herewith or therewith, by acting
upon or relying upon any notice, consent, certificate or other instrument or
writing or telephonic instruction, or notices to the extent authorized herein
or therein believed by it to be genuine and sent by the proper party or
parties; and (vi) may deem and treat the payee of any Liquidity Loan Note
as the owner thereof for all purposes hereof unless and until a notice of the
assignment or transfer thereof satisfactory to the Administrative Agent signed
by such payee shall have been filed with the Administrative Agent.

 

Each Liquidity Bank
hereby represents that it has, independently and without reliance on the
Administrative Agent or any other Liquidity Bank, and based on such documents
and information as it has deemed appropriate, made its own appraisal of the
financial risks and other risks involved in the transactions contemplated
hereunder and under the Transaction Documents and of the financial condition
and affairs of BAFC, the Guarantor and the other Program Parties, and the
adequacy of the security granted to the Liquidity Banks under the Security
Agreement and its own decision to enter into this Agreement and the Security
Agreement and the transactions contemplated hereby and thereby and agrees that
it will, independently and without reliance upon the Administrative Agent or
any other Liquidity Bank, and based on such documents and information as it
shall deem appropriate at the time, continue to make its own appraisals and
decisions in taking or not taking action under this Agreement or the Security
Agreement.  The Administrative Agent
shall not be required to keep itself informed as to the performance or
observance by BAFC, the Guarantor or any other Program Party of this Agreement,
the other Transaction Documents or any other document referred to or provided
for herein or therein or to make inquiry of, or to inspect the properties or
books of BAFC, the Guarantor or other Program Parties.  Except for notices, reports and other documents
and information expressly required to be furnished to the Liquidity Banks by
the Administrative Agent hereunder, the Administrative Agent shall not have any
duty or responsibility to provide any Liquidity Bank with any credit or other
information concerning BAFC, the Guarantor or other Program Parties which may
come into the possession of the Administrative Agent.

 

The Administrative Agent
shall not be deemed to have knowledge or notice of the occurrence of a Series 2000-1
Early Amortization Event, Potential Series 2000-1 Early Amortization
Event, Mandatory CP Wind-Down Event or Mandatory Liquidation Event unless the
Administrative Agent has received written notice from a Liquidity Bank, the
Servicer, the Company, the Guarantor or BAFC referring to this Agreement,
describing such Series 2000-1 

 

40

 

Early Amortization
Event, Potential Series 2000-1 Early Amortization Event, Mandatory CP
Wind-Down Event or Mandatory Liquidation Event and stating that such notice is
a “Notice of Series 2000-1 Early Amortization Event,” “Notice of Potential
Series 2000-1 Early Amortization Event,” “Notice of Mandatory CP Wind-Down
Event” or “Notice of Mandatory Liquidation Event,” as the case may be.  In the event that the Administrative Agent
receives such a notice of the occurrence of a Series 2000-1 Early
Amortization Event, Mandatory CP Wind-Down Event, Potential Series 2000-1
Early Amortization Event or Mandatory Liquidation Event, the Administrative
Agent shall promptly give notice thereof to the Liquidity Banks.  The Administrative Agent shall take such
action with respect to such Series 2000-1 Early Amortization Event,
Potential Series 2000-1 Early Amortization Event or Mandatory Liquidation
Event as shall be reasonably directed by the Majority Liquidity Banks; provided
that, if the Administrative Agent has not yet received such directions from the
Majority Liquidity Banks after using reasonable efforts to receive such
directions, the Administrative Agent may (but shall not be obligated to) take
such action or refrain from taking such action, with respect to such Series 2000-1
Early Amortization Event, Potential Series 2000-1 Early Amortization Event
or Mandatory Liquidation Event as it shall deem advisable in the best interests
of the Liquidity Banks.

 

Each Liquidity Bank
hereby agrees, in the ratio that such Liquidity Bank’s Percentage of the
Aggregate Liquidity Commitment hereunder bears to the Aggregate Liquidity
Commitment, to indemnify and hold harmless the Administrative Agent and its
directors, officers, agents and employees, from and against any and all losses,
liabilities (including liabilities for penalties), actions, suits, judgments,
demands, damages, settlements, costs and expenses of any kind whatsoever
(including, without limitation, fees and expenses of attorneys, accountants and
experts) incurred or suffered by the Administrative Agent in its capacity as
Administrative Agent hereunder as a result of any action taken or omitted to be
taken by the Administrative Agent in such capacity or otherwise incurred or
suffered by, made upon, or assessed against the Administrative Agent in such
capacity; provided, that no Liquidity Bank shall be liable for any
portion of any such losses, liabilities (including liabilities for penalties),
actions, suits, judgments, demands, damages, settlements, costs or expenses
determined, in the final judgment of a court of competent jurisdiction, to be
attributable to gross negligence or willful misconduct on the part of the
Administrative Agent.  Without limiting
the generality of the foregoing, each Liquidity Bank hereby agrees, in the
ratio aforesaid, to reimburse the Administrative Agent promptly following its
demand for any out-of-pocket expenses (including, without limitation, attorneys’
fees and expenses) incurred by the Administrative Agent or its directors,
officers, agents and employees hereunder or under the Security Agreement, and
not promptly reimbursed to the Administrative Agent by BAFC.  Each Liquidity Bank’s obligations under this
paragraph shall survive the termination of this Agreement and the discharge of
BAFC’s obligations hereunder.

 

The Administrative Agent
shall be entitled to rely on any communication, instrument, paper or other
document believed by it to be genuine and correct and to have been signed or
sent by the proper Person or Persons. 
With respect to its share of liability under this Agreement, JPMorgan
Chase or any successor agent, if a Liquidity Bank, shall have the same 

 

41

 

rights, power,
remedies and privileges as any other Liquidity Bank and may exercise the same
as though it were not the administrative agent of the Liquidity Banks
hereunder.

 

SECTION 10.02     Resignation of the Administrative Agent.  The Administrative Agent may, at any time upon
at least forty-five (45) days’ prior written notice to BAFC, the Servicer, the
Guarantor, the Collateral Agent, the Letter of Credit Agent, the Liquidity
Banks and the Depositary, and the Administrative Agent will at the direction of
the Majority Liquidity Banks, resign as Administrative Agent; provided, however,
that, in either case, the resignation of the Administrative Agent shall not be
effective until the Majority Liquidity Banks shall have agreed to the
appointment of another Liquidity Bank to perform the duties of the
Administrative Agent hereunder, such replacement shall have accepted such
appointment and the Letter of Credit Agent shall have delivered to the
successor Administrative Agent, in exchange for the outstanding Letter of
Credit held by the predecessor Administrative Agent, a substitute Letter of
Credit in accordance with the terms of Section 2.01(b) of the
Letter of Credit Reimbursement Agreement and the Letter of Credit.  In the event of such resignation, the
Majority Liquidity Banks shall as promptly as practicable appoint a successor
agent to replace the Administrative Agent. 
If the Majority Liquidity Banks have not appointed a successor agent
within forty-five (45) days of the Administrative Agent’s resignation notice,
the resigning Administrative Agent shall appoint a successor.  Notwithstanding the resignation of the
Administrative Agent hereunder, the provisions of Section 10.01
hereof shall continue to inure to the benefit of the Administrative Agent in
respect of any action taken or omitted to be taken by the Administrative Agent
in its capacity as such while it was such under this Agreement.

 

SECTION 10.03     Obligations Several.  The obligations of the Liquidity Banks
hereunder are several, and neither the Administrative Agent nor any Liquidity
Bank shall be responsible for the obligation of any other Liquidity Bank
hereunder, nor will the failure of any Liquidity Bank to perform any of its
obligations hereunder relieve the Administrative Agent or any other Liquidity
Bank from the performance of its obligations hereunder.  Nothing contained in this Agreement, and no
actions taken by the Liquidity Banks or the Administrative Agent pursuant
hereto or in connection with the Liquidity Commitment shall be deemed to
constitute the Liquidity Banks, together or with the Administrative Agent, a
partnership, association, joint venture or other entity.

 

SECTION 10.04     Multiple Capacities.  JPMorgan Chase is serving in the following
capacities for the benefit of BAFC: 
Administrative Agent, Liquidity Bank and Depositary.  The Liquidity Banks agree that with respect
to the obligations of the Liquidity Banks to lend under the Liquidity
Agreement, the Liquidity Loans made by the Liquidity Banks and the Liquidity Loan
Notes issued to such Liquidity Banks, and with respect to the obligations of
JPMorgan Chase as Administrative Agent and Depositary, JPMorgan Chase shall
have the same rights and powers under any Transaction Document as any other
Program Party, and may exercise the same as though it were not performing such
duties specified herein and therein; and the terms “Liquidity Banks,” “Majority
Liquidity Banks,” “holders of Liquidity Loans Notes,” or any similar terms
shall, unless the context clearly otherwise indicates, include JPMorgan Chase
in its individual capacity.  JPMorgan
Chase may accept deposits from, lend money to, and 

 

42

 

generally engage in any kind of banking, trust or
other business with any Program Party or any of their Affiliates as if it were
not performing the duties specified herein, and may accept fees and other
consideration from any Program Party or any of their Affiliates for services in
connection with any Transaction Document and otherwise without having to
account for the same to any other Program Party.  The Liquidity Banks expressly waive any
conflict of interest or any similar claims against JPMorgan Chase arising
solely out of such multiple roles of JPMorgan Chase.  JP Morgan Chase as a Liquidity Bank, the
Administrative Agent and the Depositary shall have the same rights, powers,
remedies and privileges as any Program Party and may exercise the same as
though it were not acting in multiple capacities in connection with the
Transaction Documents.

 

SECTION 10.05     Agent Communications.  The Administrative Agent shall provide to
each Liquidity Bank a copy of each material report, certificate, statement or
other communication required to be delivered to it under the Transaction
Documents and which has not been delivered to the Liquidity Banks; provided,
that posting by the Administrative Agent to Intralinks or to a similar
electronic distribution location shall satisfy the requirements of this
Section.

 

SECTION 10.06     Documentation Agent and Syndication
Agent.  Neither the Documentation
Agent nor the Syndication Agent shall have any duties or responsibilities
hereunder in its capacity as such.

 

ARTICLE XI

MISCELLANEOUS

 

SECTION 11.01     Computations.  All computations of interest and fees
hereunder and under each Liquidity Loan Note shall be made on the basis of the
actual number of days elapsed over a year of 360 (or with respect to the
computation of interest on Prime Rate Liquidity Loans, 365 or 366, as the case
may be) days.

 

SECTION 11.02     Exercise of Rights.  No failure or delay on the part of the
Administrative Agent or any Liquidity Bank to exercise any right, power or
privilege under this Agreement and no course of dealing between BAFC and the
Administrative Agent or any Liquidity Bank shall operate as a waiver thereof,
nor shall any single or partial exercise of any right, power or privilege under
this Agreement preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. 
The rights and remedies herein expressly provided are cumulative and
except to the extent limited under this Agreement not exclusive of any rights
or remedies which the Administrative Agent or any Liquidity Bank would
otherwise have pursuant to law or equity. 
No notice to or demand on any party in any case shall entitle such party
to any other or further notice or demand in similar or other circumstances, or
constitute a waiver of the right of the other party to any other or further
action in any circumstances without notice or demand.

 

43

 

SECTION 11.03     Amendment and Waiver.  (a) Any provision of any Commercial
Paper Program Document to which neither the Administrative Agent nor the
Liquidity Banks are parties, may be amended, waived, supplemented, restated,
discharged or terminated (i) to cure any ambiguity, (ii) to correct
any defective provisions or (iii) to add any other provisions with respect
to matters or questions arising thereunder, which provisions shall not be
inconsistent with any other provisions thereof, without the consent of the
Administrative Agent or the Liquidity Banks; provided such amendment,
waiver, supplement or restatement, does not affect BAFC’s ability to perform
its obligations hereunder in any material adverse respect; and provided,
further, that the Administrative Agent shall have received prior notice
thereof together with copies of any documentation related thereto.  Any other amendment, waiver, supplement or
restatement of a provision of a Commercial Paper Program Document (including
any exhibit thereto) shall require the written consent of the Administrative
Agent (acting at the direction of the Majority Liquidity Banks), the Letter of
Credit Agent and BAFC; provided that any such amendment relating to the
extension of the L/C Expiration Date may be made with the prior written consent
of the Administrative Agent, but without the consent of the Liquidity Banks; provided
further, that no such amendment of (a) this Section 11.03,
or (b) the definition of Majority Liquidity Banks may be made without the
prior written consent of the Administrative Agent acting at the direction of
all the Liquidity Banks; provided  further, that no change
relating to (w) any provision requiring the ratable funding of Liquidity
Loans or the ratable sharing of payments or setoffs, (x) increasing the
amount of the Aggregate Liquidity Commitment or any Liquidity Bank’s Liquidity
Commitment or decreasing the principal amount of any Liquidity Loan, (y) reducing
any fees or commissions with respect to, or reducing the interest rates of any
Liquidity Loans, or (z) the extension of the Liquidity Commitment
Expiration Date, may be made without the prior written consent of all the
Liquidity Banks adversely affected by such change; provided  further,
that any provisions relating to release of the Assigned Collateral, any change
with respect to the amount of the Letter of Credit Commitment (other than as
permitted by Section 2.01(e) of the Letter of Credit
Reimbursement Agreement) or forgiveness of debt, may only be amended, waived,
supplemented or restated with the written consent of BAFC and all the Secured
Parties, with the exception of the Commercial Paper Holders; and provided
further, that the amount of any Liquidity Bank’s Liquidity Commitment
shall not be changed without the consent of such affected Liquidity Bank.  Notwithstanding the preceding sentence of
this Section 11.03, any provision of any Commercial Paper Program
Document which by its terms requires the written consent of all (or a specified
Percentage of) the Liquidity Banks, shall not be amended, waived, supplemented
or restated without the prior written consent of all (or such specified
Percentage of) such Liquidity Banks.

 

(b)           Any provision of any other
Transaction Document (other than any Commercial Paper Program Document) may be
amended, waived, supplemented, restated, discharged or terminated with ten (10) Business
Days’ prior written notice to the Administrative Agent, but without the consent
of the Administrative Agent or the Liquidity Banks; provided such
amendment, waiver, supplement or restatement does not (i) render the Series 2000-1
VFC Certificate subordinate in payment to any other Series under the Trust
or otherwise adversely discriminate against the Series 2000-1 VFC
Certificate relative to any other Series under the Trust, (ii) reduce
in any manner the amount of, or delay the timing of, distributions which are 

 

44

 

required to be made on or
in respect of the Series 2000-1 VFC Certificate, (iii) change the definition
of, the manner of calculating, or in any way the amount of, the interest of
BAFC in the assets of the Trust, (iv) change the definitions of “Eligible
Loans”, “Eligible Obligors”, “Series 2000-1 Allocated Loan Amount”, “Series 2000-1
Invested Amount” or “Series 2000-1 Target Loan Amount” or, to the extent
used in such definitions, other defined terms used in such definitions, (v) result
in a Mandatory Liquidation Event, (vi) amend Section 15 or 17
of the Guaranty, (vii) release the Guarantor, (viii) change any
provision of the Guaranty (other than as described in clause (vi) or (vii) above)
which adversely affects the rights or interest of the Liquidity Banks under the
Guaranty in any material respect, (ix) change the ability of the Trustee
to declare the Purchased Loans to be immediately due and payable or the ability
of the Administrative Agent or the Majority Liquidity Banks to directly or
indirectly require the Trustee to do so, (x) increase the Series 2000-1
Maximum Invested Amount, or (xi) effect any amendment that would cause or
permit (A) the Series 2000-1 Invested Amount to exceed the Series 2000-1
Maximum Invested Amount, (B) the Series 2000-1 Target Loan Amount to
exceed the Series 2000-1 Allocated Loan Amount or (C) the Credits
Outstanding to exceed the Aggregate Available Liquidity Commitment.  Any amendment, waiver, supplement or
restatement of a provision of a Transaction Document (including any exhibit
thereto) of the type described in (x) clauses (i), (ii), (iii), (iv), (v),
(viii), (ix), (x) or (xi) in the proviso above shall require the written
consent of the Administrative Agent acting at the direction of the Majority
Liquidity Banks, (y) clause (vi) above shall require the written
consent of the Administrative Agent acting at the direction of all the
Liquidity Banks, and (z) clause (vii) above shall require the written
consent of all the Secured Parties, with the exception of the Commercial Paper
Holders. 
Notwithstanding the foregoing, the Administrative Agent shall
not be bound by any amendment, waiver, supplement or restatement of the
Transaction Documents which affects the rights or duties of the Administrative
Agent under any of the Transaction Documents unless the Administrative Agent
shall have given its prior written consent thereto.  BAFC shall send written notice of any change
to any Transaction Document to each Series 2000-1 Rating Agency.  The Servicer shall provide a copy of any
change to the Transaction Documents or the form of Loan Documents to the
Administrative Agent.  No change to any
Transaction Document (other than the Loan Documents) will become effective
until (i) prior written notice is given to the Series 2000-1 Rating
Agencies and (ii) if such amendment is material, the Rating Agency
Condition is satisfied with respect to the Commercial Paper issued by BAFC.

 

SECTION 11.04     Expenses and Indemnification.

 

(a)           BAFC
shall pay all reasonable out-of-pocket costs and expenses of the Administrative
Agent incurred in connection with the preparation, execution, delivery, syndication,
amendment, modification and waiver of, and of the Administrative Agent and each
Liquidity Bank in connection with the enforcement of and preservation of rights
under, this Agreement, the other Transaction Documents and the making and
repayment of the Liquidity Loans, including the fees and out-of-pocket expenses
of counsel to the Administrative Agent and, if applicable, the Liquidity Banks;
and shall reimburse the Administrative Agent for the reasonable fees and
out-of-pocket expenses 

 

45

 

of counsel and
other third party providers of services to the Administrative Agent in
connection with any amendments, supplements or waivers to this Agreement.

 

(b)           BAFC
agrees to indemnify and hold harmless the Administrative Agent and each
Liquidity Bank and each director, officer, employee, affiliate or agent thereof
(each, an “Indemnified Party”) from and against any and all claims,
losses, liabilities (including liabilities for penalties), actions, suits,
judgments, demands, damages, costs and expenses (including, without limitation,
reasonable attorneys’ fees and expenses) whatsoever which such Indemnified
Party may incur (or which may be claimed against such Indemnified Party) by
reason of or in connection with the Transaction Documents or any transactions
contemplated thereby, except to the extent that any such claims, losses,
liabilities (including liabilities for penalties), actions, suits, judgments,
demands, damages, costs or expenses are determined, in a final judgment of a
court of competent jurisdiction, to result from the willful misconduct or gross
negligence of such Indemnified Party. 
The foregoing indemnity shall include any claims, losses, liabilities,
(including liabilities for penalties) actions, suits, judgments, demands,
damages, costs or expenses to which the Administrative Agent or the Liquidity
Banks may become subject under the Securities Act, the Securities Exchange Act
of 1934, as amended, or other federal or state law or regulation arising out of
or based upon any untrue statement or alleged untrue statement of a material
fact in any private placement memorandum, offering memorandum or other material
provided to investors and prospective investors in connection with offers and
sales of the Commercial Paper or any amendments thereof or supplements thereto
or arising out of, or based upon, the omission or the alleged omission to state
a material fact necessary to make the statements in such private placement
memorandum, offering memorandum or other material, or any amendment thereof or
supplement thereto, in light of the circumstances in which they were made, not
misleading, provided, however, that BAFC will not be liable in
any such case to the extent that any such losses, liabilities (including
liabilities for penalties), actions, suits, judgments, demands, damages, costs
or expenses arise out of or are based upon any untrue statement or alleged
untrue statement of a material fact made therein in conformity with written
information furnished to BAFC by or on behalf of such Indemnified Party
specifically for use in connection with the preparation thereof.  Payment of indemnification obligations by
BAFC is to be made from available moneys in accordance with and subject to
Articles 5 and 6 of the Security Agreement.

 

(c)           All
obligations provided for in this Section 11.04 shall survive any
termination of this Agreement.

 

SECTION 11.05     Successors and Assigns.

 

(a)           This
Agreement shall bind, and the benefits hereof shall inure to, BAFC, the
Administrative Agent, the Liquidity Banks and their respective successors and
assigns; provided that (i) BAFC may not transfer or assign any or
all of its rights and obligations hereunder without the prior written consent
of the Guarantor, the 

 

46

 

Administrative
Agent and all of the Liquidity Banks and (ii) any attempted assignment or
transfer by BAFC without such consent shall be null and void; provided  further,
that no Liquidity Bank shall assign any of its rights and obligations
hereunder, including its rights under the Liquidity Loan Note, to any Person
unless (i) the prior written consent of the Administrative Agent and,
prior to a Mandatory Liquidation Event, the Guarantor which shall not be
unreasonably withheld, shall have been obtained, unless such assignment is made
to an Affiliate of the Liquidity Bank or another Liquidity Bank in which case
only the consent of the Administrative Agent shall be required (such consent
not to be unreasonably withheld); (ii) prior to the effective date of such
assignment, such Person executes and delivers to BAFC the Assignment and
Assumption Agreement substantially in the form of Exhibit B hereto to the
effect that such Person agrees to be bound by the provisions of this Agreement
(including the agreement set forth in Sections 11.12 and 11.17
hereof); (iii) such Liquidity Bank assigns an amount equal to no less than
$5,000,000 (or such Liquidity Bank’s entire Liquidity Commitment if less than
$5,000,000) to the assignee; (iv) BAFC obtains a letter from each Series 2000-1
Rating Agency then rating the Commercial Paper to the effect that the
assignment will not result in the downgrading or withdrawal of the rating
assigned to the Commercial Paper; and (v) such Person, if not a U.S.
Person, shall provide BAFC with appropriately executed copies of Internal
Revenue Service Form W-8BEN (but only if the applicable treaty described
in such form provides a complete exemption from federal income tax withholding)
or, alternatively, Internal Revenue Service Form W-8ECI or any successor
form with respect to each such Person (x) on or prior to execution of any
such assignment and (y) upon the occurrence of any event which would
require the amendment or resubmission of any such form previously provided
hereunder.  Notwithstanding any such
assignment, (i) the Depositary shall have no obligation to communicate
with any such assignee when requesting a Liquidity Loan hereunder but shall
communicate any such request to the Administrative Agent as if such assignment
had not been made and (ii) all payments hereunder shall be made directly
to the Administrative Agent as if no such assignment had occurred.

 

(b)           Notwithstanding
the foregoing and subject to subsection 11.05(c) below, each
Liquidity Bank may at any time grant participations in, or otherwise transfer
to, any other financial institution (a “Participant”) any Liquidity Loan
or Liquidity Loans.  In connection with
any such transfer, each such Liquidity Bank, at its sole discretion, shall be
entitled to distribute to any Participant or potential Participant any
information furnished to such Liquidity Bank pursuant to this Agreement
provided the requirements of Section 11.17 hereof are met.  Each Liquidity Bank hereby acknowledges and
agrees that any such disposition will not alter or affect such Liquidity Bank’s
direct obligations to BAFC hereunder, and that BAFC shall have no obligation to
have any communication or relationship with any Participant in order to enforce
such obligation of any such Liquidity Bank to BAFC hereunder.  Notwithstanding the foregoing sentence, it is
understood and agreed that any Liquidity Bank may enter into a participation
agreement with a Participant that may provide that such Liquidity Bank will not
agree to any amendment, supplement, modification or waiver described in the
second proviso to the 

 

47

 

second sentence of
Section 11.03 or related to forgiveness of debt without the consent
of such Participant.  Each Liquidity Bank
shall promptly notify BAFC in writing of the identity and interest of each
Participant upon any such disposition. 
The provisions of Section 4.05, Section 4.06 and
Section 11.12 hereof shall apply to any direct or indirect
Participant provided that no Participant shall be entitled to receive any
greater amount pursuant to any such Section than the transferor Liquidity
Bank would have been entitled to receive in respect of the amount of the
participation transferred by such transferor Liquidity Bank to such Participant
had no such transfer occurred.

 

(c)           With
respect to any assignment or participation pursuant to this Section 11.05,
the Liquidity Banks shall not be permitted to distribute any documents or other
information to any potential assignee, Participant, or any Person with whom
such Liquidity Bank enters into a securitization, hedge transaction or
otherwise in relation to any transaction in which payments are made by
reference to this Agreement or to any obligor under this Agreement (such
Person, an “Other Person”), unless each such assignee, Participant or
Other Person shall first agree in writing that such documents and other
information are accepted by it in accordance with the provisions of Section 11.17
hereof.

 

(d)           For
avoidance of doubt, the parties to this Agreement acknowledge that the
provisions of this subsection concerning assignments of the Liquidity Loans and
Liquidity Loan Notes relate only to absolute assignments and that such
provisions do not prohibit assignments creating security interests, including,
without limitation, any pledge or assignment by a Liquidity Bank of any
Liquidity Loan Note or any part of the Liquidity Loans to any Federal Reserve
Bank in accordance with applicable law; provided that any sale or
foreclosure of any assignment for security shall be subject to the other
provisions of this subsection relating to absolute assignments.

 

(e)           Notwithstanding
anything to the contrary contained herein, any Liquidity Bank (a “Granting
Bank”) may grant to a special purpose funding vehicle (a “SPC”),
identified as such in writing from time to time by the Granting Bank to the
Administrative Agent and BAFC, the option to provide to BAFC or the Depositary
in accordance with Section 3.01 all or any part of any Liquidity
Loan that such Granting Bank would otherwise be obligated to make to BAFC or
the Depositary pursuant to this Agreement; provided that (i) nothing
herein shall constitute a commitment by any SPC to make any Liquidity Loan, (ii) if
an SPC elects not to exercise such option or otherwise fails to provide all or
any part of such Liquidity Loan, the Granting Bank shall be obligated to make
such Liquidity Loan pursuant to the terms hereof.  The making of a Liquidity Loan by an SPC
hereunder shall utilize the Liquidity Commitment of the Granting Bank to the
same extent, and as if, such Liquidity Loan were made by such Granting
Bank.  Each party hereto hereby agrees
that no SPC shall be liable for any indemnity or similar payment obligation under
this Agreement (all liability for which shall remain with the Granting
Bank).  In furtherance of the foregoing,
each party hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to 

 

48

 

the date that is one
year and one day after the payment in full of all outstanding commercial paper
or other senior indebtedness of any SPC, it will not institute against, or join
any other Person in instituting against, such SPC any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings under the
laws of the United States or any State thereof. 
In addition, notwithstanding anything to the contrary contained in this Section 11.05,
any SPC may (i) with notice to, but without the prior written consent of,
BAFC and the Administrative Agent and without paying any processing fee
therefore, assign all or a portion of its interest in any Liquidity Loan to the
Granting Bank or to any financial institutions (consented to by BAFC and the
Administrative Agent) providing liquidity and/or credit support to or for the
account of such SPC to support the funding or maintenance of Liquidity Loans
and (ii) disclose on a confidential basis any non-public information
relating to its Liquidity Loans to any rating agency, commercial paper dealer
or provider of any surety, guarantee or credit or liquidity enhancement to such
SPC.  This Section may not be
amended without the written consent of the SPC.

 

SECTION 11.06     Notices, Requests, Demands.  Except where telephonic instructions or
notices are authorized herein to be given, all notices, demands, instructions
and other communications required or permitted to be given to or made upon any
party hereto shall be in writing and shall be personally delivered or sent by
registered, certified or express mail (or other overnight courier service),
postage prepaid, return receipt requested, or by facsimile transmission, and
shall be deemed to be given for purposes of this Agreement on the day that such
writing is delivered or sent to the intended recipient thereof in accordance
with the provisions of this Section. 
Unless otherwise specified in a notice sent or delivered in accordance
with the foregoing provisions of this Section, notices, demands, instructions
and other communications in writing shall be given to or made upon the
respective parties hereto at their respective Notice Addressees (or to their
respective facsimile transmission numbers), and, in the case of telephonic
instructions or notices, by calling the telephone number or numbers indicated
for such party.

 

If to a Liquidity Bank
other than the Administrative Agent, notice shall be made in accordance with
the information set forth with respect to each Liquidity Bank on the signature page hereto.

 

SECTION 11.07     Survival.  All representations and warranties contained
in Article IX shall survive the execution and delivery of this Agreement
and each Liquidity Loan Note and shall continue only so long as and until such
time as all indebtedness hereunder and under Commercial Paper and the Liquidity
Loan Notes shall have been paid in full and the Liquidity Banks no longer have
any Liquidity Commitment hereunder.  The
provisions of Sections 4.05, 4.06, 10.01, 11.04 and
11.12 hereof shall also survive termination of this Agreement.

 

SECTION 11.08     GOVERNING LAW.  THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT
AND 

 

49

 

UNDER EACH LIQUIDITY LOAN NOTE SHALL
BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.

 

SECTION 11.09     Counterparts.  This Agreement may be executed in any number
of copies, and by the different parties hereto on the same or separate
counterparts, each of which shall be deemed to be an original instrument.

 

SECTION 11.10     Setoff.  In addition to any rights now or hereafter
granted under applicable law and not by way of limitation of any such rights,
upon the occurrence of a Mandatory Liquidation Event, each Liquidity Bank is
hereby authorized at any time or from time to time, without notice to BAFC or
to any other Person, any such notice being hereby expressly waived, to set off
and to appropriate and apply any and all deposits (general or special) and any
other indebtedness at any time held or owing by such Liquidity Bank to or for
the credit or the account of BAFC against and on account of the obligations and
liabilities of BAFC to such Liquidity Bank under this Agreement and the
Liquidity Loan Notes, including, without limitation, all claims of any nature
or description arising out of or connected with this Agreement or the Liquidity
Loan Notes, irrespective of whether or not such Liquidity Bank shall have made
any demand hereunder and although said obligations, liabilities or claims, or
any of them, shall be contingent or unmatured; provided, however,
that the rights of the Administrative Agent and the Liquidity Banks to the
Collateral Accounts shall be governed by the Security Agreement.

 

If any Liquidity Bank,
whether by setoff or otherwise, has payment made to it upon its Liquidity Loans
(other than payments received pursuant to Sections 4.03(c)(ii), 4.05,
4.06 or 11.04) in a greater proportion than that received by any
other Liquidity Bank, such Liquidity Bank agrees, promptly upon demand, to purchase
a portion of the Liquidity Loans held by the other Liquidity Banks so that
after such purchase each Liquidity Bank will hold its ratable proportion of
Liquidity Loans.

 

SECTION 11.11     Further Assurances.  BAFC agrees to do such further acts and things
and to execute and deliver to the Administrative Agent such additional
assignments, agreements, powers and instruments, as the Administrative Agent
may reasonably require or reasonably deem advisable to carry into effect the
purposes of this Agreement or to better assure and confirm unto the
Administrative Agent its rights, powers and remedies hereunder.

 

SECTION 11.12     No Bankruptcy Petition Against BAFC;
Liability of BAFC.

 

(a)           Each
of the Administrative Agent, Liquidity Banks and the Participants hereby
covenants and agrees that, prior to the date which is one year and one day
after the payment in full of all outstanding Commercial Paper, it will not
institute against, or join with or assist any other Person in instituting
against, BAFC, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings under any Applicable Insolvency
Laws.  This Section 11.12
shall survive the termination of this Agreement.

 

50

 

(b)           Notwithstanding
any other provision hereof or of any other Transaction Documents, the sole
remedy of the Administrative Agent, any Liquidity Bank or any other Person in
respect of any obligation, covenant, representation, warranty or agreement of
BAFC under or related to this Agreement or any other Transaction Document shall
be against the assets of BAFC.  Neither
the Administrative Agent, nor any Liquidity Bank nor any other Person shall
have any claim against BAFC to the extent that such assets are insufficient to
meet such obligations, covenant, representation, warranty or agreement (the
difference being referred to herein as a “shortfall”) and all claims in
respect of the shortfall shall be extinguished; provided, however,
that the provisions of this Section 11.12 apply solely to the
obligations of BAFC and shall not extinguish such shortfall for purposes of the
obligations of the Guarantor to any Person under the Guaranty.

 

SECTION 11.13     No Recourse Loan.  The obligations of BAFC under this Agreement,
the Liquidity Loan Notes, the Depositary Agreement, the Security Agreement and
all other Transaction Documents are solely the corporate obligations of
BAFC.  No recourse shall be had for the
payment of any amount owing in respect of Liquidity Loans or for the payment of
any fee hereunder or any other obligation or claim arising out of or based upon
this Agreement, the Liquidity Loan Notes, the Depositary Agreement, the
Security Agreement, or any other Transaction Document against any member,
employee, officer, director or incorporator of BAFC.

 

SECTION 11.14     Knowledge of BAFC.  BAFC shall be entitled to assume that no
Mandatory Liquidation Event shall have occurred and be continuing, unless a
Responsible Officer of BAFC has actual knowledge thereof or BAFC has received
notice from any Person that such Person considers that such a Mandatory
Liquidation Event has occurred and is continuing.

 

SECTION 11.15     Descriptive Headings.  The descriptive headings of the various
sections of this Agreement are inserted for convenience of reference only and
shall not be deemed to affect the meaning or construction of any of the
provisions hereof.

 

SECTION 11.16     Consent to Jurisdiction and Service of
Process.  The parties irrevocably
agree that any legal proceeding in respect of this Agreement may be brought in
the courts of the State of New York sitting in the Borough of Manhattan or the
United States District Court of the Southern District of New York
(collectively, the “Specified Courts”). 
The parties hereby irrevocably submit to the nonexclusive jurisdiction
of the state and federal courts of the State of New York.  The parties hereby irrevocably waive, to the
fullest extent permitted by law, any objection which they may now or hereafter
have to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement brought in any Specified Court, and hereby further
irrevocably waive any claim that any such suit, action or proceeding brought in
any such court has been brought in an inconvenient forum.  The parties further irrevocably consent to
the service of process out of any of the Specified Courts in any such suit,
action or proceeding by the mailing of copies thereof by certified mail, return
receipt requested, postage 

 

51

 

prepaid, to any party at its address as provided in
this Agreement or as otherwise provided by applicable law.  Nothing herein shall affect the right of any
party to commence proceedings or otherwise proceed against any other party in
any jurisdiction or to serve process in any other manner permitted by
applicable law.  The parties hereto agree
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 applicable law.

 

SECTION 11.17     Confidentiality.  Each Liquidity Bank and the Administrative
Agent hereby agree that all knowledge of information, practices, books,
correspondence and records provided to it by BAFC is to be regarded as
confidential information and agrees that (i) it shall retain in strict
confidence and shall use reasonable efforts to ensure that its representatives
retain in strict confidence and will not disclose without the prior written
consent of BAFC any or all of such information, practices, books,
correspondence and records furnished to them and (ii) it will not, and
will use its best efforts to ensure that its representatives will not, make any
use whatsoever (other than for the purposes contemplated by this Agreement and
the other Transaction Documents) of any of such information, practices, books,
correspondence and records without the prior written consent of BAFC, unless
such information is generally available to the public or is required by law,
regulation, court order, stock exchnage or by any regulatory authority having
jurisdiction over it, to be disclosed.

 

This Section 11.17
shall survive the termination of this Agreement.

 

SECTION 11.18     Final Agreement.  THIS WRITTEN AGREEMENT AND THE LIQUIDITY LOAN
NOTES REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

 

SECTION 11.19     U.S.A. PATRIOT Act.  Each
Liquidity Bank hereby notifies BAFC 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 BAFC, which information includes the name and
address of BAFC and other information that will allow such Liquidity Bank to
identify BAFC in accordance with the Act.

 

[signature page follows]

 

52

 

IN WITNESS WHEREOF, each
of the parties hereto has caused a counterpart of this Eighth Amended and
Restated Liquidity Agreement to be duly executed and delivered as of the date
first above written.

 

	
   

  	
  BUNGE ASSET
  FUNDING CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ HUNTER SMITH

  
	
   

  	
  Printed Name:

  	
  Hunter Smith 

  
	
   

  	
  Title:

  	
  President

  

 

 

	
   

  	
  JPMORGAN CHASE BANK, N.A.,

  as Administrative Agent and Liquidity Bank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ BARBARA R. MARKS

  
	
   

  	
  Printed Name:

  	
  Barbara R. Marks

  
	
   

  	
  Title:

  	
  Vice President

  

 

 

	
   

  	
  CITIBANK, N.A.,

  as Syndication Agent and Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ROBERT J. KANE

  
	
   

  	
  Printed Name: 

  	
  Robert J. Kane 

  
	
   

  	
  Title:

  	
  Vice President

  

 

 

	
   

  	
  BNP PARIBAS,

  as Documentation Agent and Liquidity Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ FLORENCE POURCKET

  
	
   

  	
  Printed Name: 

  	
  Florence Pourcket 

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ CLAUDIA ZARATE

  
	
   

  	
  Printed Name: 

  	
  Claudia Zarate

  
	
   

  	
  Title:

  	
  Vice President

  

 

 

	
   

  	
  CREDIT SUISSE, ACTING THROUGH ITS

  CAYMAN ISLANDS BRANCH,

  as Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ KARL STUDER

  
	
   

  	
  Printed Name: 

  	
  Karl Studer 

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ALAIN SCHMID 

  
	
   

  	
  Printed Name: 

  	
  Alain Schmid

  
	
   

  	
  Title:

  	
  Assistant Vice President

  

 

 

	
   

  	
  CREDIT SUISSE, ACTING THROUGH ITS

  CAYMAN ISLANDS BRANCH,

  as Liquidity Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ KARL STUDER    

  
	
   

  	
  Printed Name: 

  	
  Karl Studer 

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ALAIN SCHMID 

  
	
   

  	
  Printed Name: 

  	
  Alain Schmid 

  
	
   

  	
  Title:

  	
  Assistant Vice President

  

 

 

	
   

  	
  COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK
  B.A., “RABOBANK INTERNATIONAL”, NEW YORK BRANCH,

  as Documentation Agent and Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JAMES PURKY

  
	
   

  	
  Printed Name: 

  	
  James Purky 

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ANDREW SHERMAN 

  
	
   

  	
  Printed Name:

  	
  Andrew Sherman 

  
	
   

  	
  Title:

  	
  Executive Director

  

 

 

	
   

  	
  BANK OF TOKYO-MITSUBISHI UFJ TRUST

  COMPANY,

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JESSE A. REID JR.

  
	
   

  	
  Printed Name: 

  	
  Jesse A. Reid Jr. 

  
	
   

  	
  Title:

  	
  Vice President & Manager

  

 

 

	
   

  	
  CALYON NEW YORK BRANCH,

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ GREG HENNENFRENT

  
	
   

  	
  Printed Name: 

  	
  Greg Hennenfrent 

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JOE PHILBIN

  
	
   

  	
  Printed Name: 

  	
  Joe Philbin 

  
	
   

  	
  Title:

  	
  Director

  

 

 

	
   

  	
  HSBC BANK USA, NATIONAL

  ASSOCIATION,

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ROBERT J. DEVIR

  
	
   

  	
  Printed Name: 

  	
  Robert J. Devir 

  
	
   

  	
  Title:

  	
  Managing Director

  

 

 

	
   

  	
  SUNTRUST BANK,

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ HUGH E. BROWN

  
	
   

  	
  Printed Name: 

  	
  Hugh E. Brown 

  
	
   

  	
  Title:

  	
  Director

  

 

 

	
   

  	
  THE ROYAL BANK OF SCOTLAND PLC,

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ BEN CARSWELL

  
	
   

  	
  Printed Name: 

  	
  Ben Carswell 

  
	
   

  	
  Title:

  	
  Associate Director

  

 

 

	
   

  	
  MORGAN STANLEY BANK,

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DANIEL TWENGE

  
	
   

  	
  Printed Name: 

  	
  Daniel Twenge 

  
	
   

  	
  Title:

  	
  Authorized Signatory

  

 

 

	
   

  	
  BANK OF MONTREAL,

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JENNIFER WENDROW

  
	
   

  	
  Printed Name: 

  	
  Jennifer Wendrow 

  
	
   

  	
  Title:

  	
  Vice President

  

 

 

	
   

  	
  DEUTSCHE BANK AG,

  NEW YORK BRANCH,

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ HEIDI SANDQUIST

  
	
   

  	
  Printed Name: 

  	
  Heidi Sandquist 

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MING K. CHU  

  
	
   

  	
  Printed Name: 

  	
  Ming K. Chu 

  
	
   

  	
  Title:

  	
  Vice President

  

 

 

	
   

  	
  ING BANK N.V.,

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ANTHONY VAN VLIET

  
	
   

  	
  Printed Name: 

  	
  Anthony van Vliet

  
	
   

  	
  Title: 

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 

  
	
   

  	
  Printed Name:

  	
   

  
	
   

  	
  Title:

  	
  Director

  

 

 

	
   

  	
  SOCIETE GENERALE,

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ PETER LOPOUKHINE

  
	
   

  	
  Printed Name:

  	
  Peter Lopoukhine

  
	
   

  	
  Title:

  	
  Director

  

 

 

	
   

  	
  ABN AMRO BANK N.V.,

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DAVID CARRINGTON 

  
	
   

  	
  Printed Name: 

  	
  David Carrington 

  
	
   

  	
  Title: 

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MARC BRONDYKE 

  
	
   

  	
  Printed Name: 

  	
  Marc Brondyke 

  
	
   

  	
  Title:

  	
  Associate

  

 

 

	
   

  	
  STANDARD CHARTERED BANK,

  NEW YORK BRANCH

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ LYNN ZENNARIO

  
	
   

  	
  Printed Name:

  	
  Lynn Zennario

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ ANDREW Y. NG

  
	
   

  	
  Printed Name:

  	
  Andrew Y. Ng

  
	
   

  	
  Title:

  	
  Director

  

 

 

	
   

  	
  BANCO BILBAO VIZCAYA
  ARGENTARIA S.A.,

  as Liquidity Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ANNE-MAUREEN SARFATI

  
	
   

  	
  Printed Name: 

  	
  Anne-Maureen Sarfati

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ HECTOR O. VILLEGAS

  
	
   

  	
  Printed Name:

  	
  Hector O. Villegas

  
	
   

  	
  Title:

  	
  Vice President

  

 

 

	
   

  	
  AUSTRALIA AND NEW ZEALAND

  BANKING GROUP LIMITED,

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ JOHN W.
  WADE

  
	
   

  	
  Printed Name:

  	
  John W. Wade

  
	
   

  	
  Title:

  	
  Director

  

 

 

	
   

  	
  FORTIS BANK SA/NV CAYMAN ISLANDS

  BRANCH,

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ DARREL HO

  
	
   

  	
  Printed Name:

  	
  Darrel Ho

  
	
   

  	
  Title: 

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ JAMIE L.
  SILVER

  
	
   

  	
  Printed Name:

  	
  Jamie L. Silver

  
	
   

  	
  Title:

  	
  Assistant Vice President

  
				

 

 

	
   

  	
  BARCLAYS BANK PLC,

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ NICHOLAS
  BELL

  
	
   

  	
  Printed Name:

  	
  Nicholas Bell

  
	
   

  	
  Title:

  	
  Director

  

 

 

	
   

  	
  MIZHUO CORPORATE BANK, LTD.,

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ HIDEKATSU
  TAKE

  
	
   

  	
  Printed Name:

  	
  Hidekatsu Take

  
	
   

  	
  Title:

  	
  Deputy General Manager

  

 

 

	
   

  	
  BANCO SANTANDER, S.A., NEW YORK

  BRANCH,

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ CARLOS DE
  PAULA

  
	
   

  	
  Printed Name:

  	
  Carlos de Paula

  
	
   

  	
  Title:

  	
  Executive Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ PAUL
  LAMMEY

  
	
   

  	
  Printed Name:

  	
  Paul Lammey

  
	
   

  	
  Title:

  	
  Executive Director

  

 

 

 

	
   

  	
  THE BANK OF NOVA SCOTIA,

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ TODD
  MELLER

  
	
   

  	
  Printed Name:

  	
  Todd Meller

  
	
   

  	
  Title:

  	
  Managing Director

  

 

 

	
   

  	
  KBC BANK N.V.

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ FABIAN
  BOSMAN

  
	
   

  	
  Printed Name:

  	
  Fabian Bosman

  
	
   

  	
  Title:

  	
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ PAUL
  D’HAEYER

  
	
   

  	
  Printed Name:

  	
  Paul D’Haeyer

  
	
   

  	
  Title:

  	
  General Manager

  

 

 

	
   

  	
  CIBC INC.,

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ DOMINIC
  J. SORRESSO

  
	
   

  	
  Printed Name:

  	
  Dominic J. Sorresso

  
	
   

  	
  Title:

  	
  Executive Director

  

 

 

	
   

  	
  UNICREDITO ITALIANO S.P.A.,

  NEW YORK BRANCH,

  as Liquidity Bank 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/
  CHRISTOPHER J. ELDIN

  
	
   

  	
  Printed Name:

  	
  Christopher J. Eldin

  
	
   

  	
  Title:

  	
  Deputy Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ SAIYED A.
  ABBAS

  
	
   

  	
  Printed Name:

  	
  Saiyed A. Abbas

  
	
   

  	
  Title:

  	
  Vice President

  

 

 

ANNEX
Y

 

	
  Liquidity
  Commitments

  	
   

  	
  Expiration Date:
  June 11, 2012

  

 

	
  Banks

  	
   

  	
  Percentage of Aggregate

  Liquidity Commitment

  	
   

  	
  Dollar

  Amount

  	
   

  
	
  JPMorgan Chase
  Bank, N.A.

  	
   

  	
  7.50%

  	
   

  	
  $45,000,000

  	
   

  
	
  Citibank, N.A.

  	
   

  	
  7.50%

  	
   

  	
  $45,000,000

  	
   

  
	
  BNP Paribas

  	
   

  	
  5.00%

  	
   

  	
  $30,000,000

  	
   

  
	
  Credit Suisse,
  acting through its Cayman Islands Branch

  	
   

  	
  5.00%

  	
   

  	
  $30,000,000

  	
   

  
	
  Cooperatieve
  Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank International”, New York
  Branch

  	
   

  	
  5.00%

  	
   

  	
  $30,000,000

  	
   

  
	
  Bank of
  Tokyo-Mitsubishi UFJ Trust Company

  	
   

  	
  4.17%

  	
   

  	
  $25,000,000

  	
   

  
	
  Calyon New York
  Branch

  	
   

  	
  4.17%

  	
   

  	
  $25,000,000

  	
   

  
	
  HSBC Bank USA,
  National Association

  	
   

  	
  4.17%

  	
   

  	
  $25,000,000

  	
   

  
	
  SunTrust Bank

  	
   

  	
  4.17%

  	
   

  	
  $25,000,000

  	
   

  
	
  The Royal Bank
  of Scotland PLC

  	
   

  	
  4.17%

  	
   

  	
  $25,000,000

  	
   

  
	
  Morgan Stanley
  Bank

  	
   

  	
  4.17%

  	
   

  	
  $25,000,000

  	
   

  
	
  Bank of Montreal

  	
   

  	
  4.17%

  	
   

  	
  $25,000,000

  	
   

  
	
  ABN AMRO Bank
  N.V.

  	
   

  	
  3.33%

  	
   

  	
  $20,000,000

  	
   

  
	
  Deutsche Bank
  AG, New York Branch

  	
   

  	
  3.33%

  	
   

  	
  $20,000,000

  	
   

  
	
  ING Bank N.V.

  	
   

  	
  3.33%

  	
   

  	
  $20,000,000

  	
   

  
	
  Societe Generale

  	
   

  	
  3.33%

  	
   

  	
  $20,000,000

  	
   

  
	
  Standard
  Chartered Bank, New York Branch

  	
   

  	
  3.33%

  	
   

  	
  $20,000,000

  	
   

  
	
  Banco Bilbao Vizcaya Argentaria S.A.

  	
   

  	
  3.33%

  	
   

  	
  $20,000,000

  	
   

  
	
  Australia and
  New Zealand Banking Group Limited

  	
   

  	
  3.33%

  	
   

  	
  $20,000,000

  	
   

  
	
  Fortis Bank
  SA/NV Cayman Islands Branch

  	
   

  	
  3.33%

  	
   

  	
  $20,000,000

  	
   

  
	
  Barclays Bank
  PLC

  	
   

  	
  3.33%

  	
   

  	
  $20,000,000

  	
   

  
	
  Mizhuo Corporate
  Bank, LTD.

  	
   

  	
  3.33%

  	
   

  	
  $20,000,000

  	
   

  

 

Y-1

 

	
  Banco Santander
  Centeral Hispano, S.A., New York Branch

  	
   

  	
  1.67%

  	
   

  	
  $10,000,000

  	
   

  
	
  The Bank of Nova
  Scotia

  	
   

  	
  1.67%

  	
   

  	
  $10,000,000

  	
   

  
	
  KBC Bank N.V.

  	
   

  	
  1.67%

  	
   

  	
  $10,000,000

  	
   

  
	
  CIBC Inc.

  	
   

  	
  1.67%

  	
   

  	
  $10,000,000

  	
   

  
	
  Unicredito
  Italiano S.P.A., New York Branch

  	
   

  	
  0.83%

  	
   

  	
  $5,000,000

  	
   

  
	
  TOTAL

  	
   

  	
  100.0%

  	
   

  	
  $600,000,000

  	
   

  

 

Y-2

 

EXHIBIT A to

Liquidity Agreement

 

BUNGE ASSET
FUNDING CORP.

 

LIQUIDITY LOAN
NOTE

 

	
  $

  	
  New York, New
  York

  
	
   

  	
  [                          ],
  2007

  

 

FOR VALUE RECEIVED, BUNGE
ASSET FUNDING CORP., a Delaware 
corporation (“BAFC”), hereby promises to pay to the order of
                                                            
(the “Liquidity Bank”), in lawful money of the United States of America
in immediately available funds, at the office of the Administrative Agent (as
defined in the Liquidity Agreement referred to below) located at New York, New
York, on the Liquidity Commitment Expiration Date (as defined in the Liquidity
Agreement referred to below) the principal sum of
                                                    
or, if less, then the unpaid principal amount of all Liquidity Loans (as
defined in the Liquidity Agreement) made by the Liquidity Bank pursuant to the
Liquidity Agreement.

 

BAFC promises also to pay
interest on the unpaid principal amount of each Liquidity Loan made by the
Liquidity Bank in like money at said office from the date hereof until paid at
the rates and at the times provided in Section 3.03 of the
Liquidity Agreement.

 

This Liquidity Loan Note
evidences indebtedness incurred under and is subject to the terms and
provisions of and entitled to the benefits of a Eighth Amended and Restated Liquidity
Agreement, dated as of October 5, 2007 (as from time to time in effect,
the “Liquidity Agreement”), among BAFC, certain lenders (including the
Liquidity Bank) and JPMorgan Chase Bank, N.A., as agent for such lenders (the “Administrative
Agent”).  This Note is secured by the
Fourth Amended and Restated Security Agreement dated as of June 28, 2004,
as from time to time in effect, among BAFC, the Administrative Agent,
Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank International”,
New York Branch, as Letter of Credit Agent, the Servicer and The Bank of New
York, as Collateral Agent.

 

As provided in the
Liquidity Agreement, this Note is subject to voluntary and mandatory
prepayment, in whole or in part.

 

In case a Mandatory
Liquidation Event (as defined in the Liquidity Agreement) shall occur and be
continuing, the principal of and accrued interest on this Liquidity Loan Note
may be declared to be due and payable in the manner and with the effect
provided in the Liquidity Agreement.

 

BAFC hereby waives
presentment, demand, protest or notice of any kind in connection with this
Note.

 

A-1

 

THIS NOTE SHALL BE
CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK.

 

	
   

  	
  BUNGE ASSET FUNDING
  CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Printed Name:

  	
   

  
	
   

  	
  Title:

  	
   

  	 

 

A-2

 

EXHIBIT B to

Liquidity Agreement

 

FORM OF ASSIGNMENT AND ASSUMPTION

 

Reference is made to the
Eighth Amended and Restated Liquidity Agreement, dated as of October 5,
2007 (the “Liquidity  Agreement”), among Bunge Asset Funding
Corp., JP Morgan Chase Bank, N.A. as Administrative Agent and the Liquidity
Banks named therein.  Terms defined in
the Liquidity Agreement are used herein with the same meaning.

 

The “Assignor” and
the “Assignee” referred to on Annex 1 agree as follows:

 

1.             The Assignor hereby sells and
assigns to the Assignee, and the Assignee hereby purchases and assumes from the
Assignor, an interest in and to the Assignor’s rights and obligations under the
Liquidity Agreement as of the date hereof equal to the percentage interest
specified on Annex 1 of all outstanding rights and obligations under the
Liquidity Agreement.  After giving effect
to such sale and assignment, the Assignee’s Percentage of the Aggregate
Liquidity Commitment and the amount of Liquidity Loans owing to the Assignee
will be as set forth on Annex 1.

 

2.             The Assignor (i) represents
and warrants that it is the legal and beneficial owner of the interest being
assigned by it hereunder and that such interest is free and clear of any
adverse claim; (ii) makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with the Transaction Documents or the execution,
legality, validity, enforceability, genuineness, sufficiency or value of the
Transaction Documents or any other instrument or document furnished pursuant
thereto; (iii) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of any Program Party or
the performance or observance by any Program Party of any of its obligations
under the Transaction Documents or any other instrument or document furnished
pursuant thereto; and (iv) attaches the Liquidity Loan Note or Notes held
by the Assignor and requests that the Administrative Agent exchange such
Liquidity Loan Note or Notes for a new Liquidity Loan Note or Notes payable to
the order of the Assignee in an amount equal to the Percentage of the Aggregate
Liquidity Commitment assumed by the Assignee pursuant hereto or new Liquidity
Loan Notes payable to the order of the Assignee in an amount equal to the
Percentage of the Aggregate Liquidity Commitment assumed by the Assignee
pursuant hereto and to the order of the Assignor in an amount equal to the
Percentage of the Aggregate Liquidity Commitment retained by the Assignor under
the Liquidity Agreement, respectively, as specified on Annex 1.

 

3.             The Assignee (i) confirms that
it has received a copy of the Liquidity Agreement 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; (ii) agrees that it
will, independently and without reliance upon the Administrative Agent, 

 

B-1

 

the Assignor or
any other Liquidity Bank 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 Liquidity Agreement; (iii) attaches
the letters from each Series 2000-1 Rating Agency required by subsection
11.05(a)(iv) of the Liquidity Agreement; (iv) appoints and
authorizes the Administrative Agent to take such action as agent on its behalf
and to exercise such powers and discretion under the Liquidity Agreement as are
delegated to the Administrative Agent by the terms thereof, together with such
powers and discretion as are reasonably incidental thereto; (v) agrees
that it will perform in accordance with their terms all of the obligations that
by the terms of the Liquidity Agreement are required to be performed by it as a
Liquidity Bank (including the obligations set forth at Sections 11.12
and 11.17 of the Liquidity Agreement); and (vi) attaches any U.S.
Internal Revenue Service form required under subsection 11.05(a)(v) of
the Liquidity Agreement.

 

4.             Following the execution of this
Assignment and Assumption, it will be delivered to the Administrative Agent and
the Guarantor for acceptance.  The
effective date for this Assignment and Assumption (the “Effective Date”)
shall be the date of acceptance hereof by the Administrative Agent and the
Guarantor, unless otherwise specified on Annex 1.

 

5.             Upon such acceptance by the
Administrative Agent and the Guarantor, as of the Effective Date, (i) the
Assignee shall be a party to the Liquidity Agreement and, to the extent
provided in this Assignment and Assumption, have the rights and obligations of
a Liquidity Bank thereunder and (ii) the Assignor shall, to the extent
provided in this Assignment and Assumption, relinquish its rights and be
released from its obligations under the Liquidity Agreement.

 

6.             Upon such acceptance by the
Administrative Agent, from and after the Effective Date, the Administrative
Agent shall make all payments under the Liquidity Agreement and the Liquidity
Loan Notes in respect of the interest assigned hereby (including, without
limitation, all payments of principal, interest and commitment fees with
respect thereto) to the Assignee.  The
Assignor and Assignee shall make all appropriate adjustments in payments under
the Liquidity Agreement and the Liquidity Loan Notes for periods prior to the
Effective Date directly between themselves.

 

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

 

8.             This Assignment and Assumption may
be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement.  Delivery of an executed
counterpart of Annex 1 to this Assignment and Assumption by telecopier shall be
effective as delivery of a manually executed counterpart of this Assignment and
Assumption.

 

B-2

 

IN
WITNESS WHEREOF, the Assignor and the Assignee have caused Annex 1 to this
Assignment and Assumption to be executed by their officers thereunto duly
authorized as of the date specified thereon.

 

B-3

 

ANNEX 1

TO

ASSIGNMENT AND ASSUMPTION

 

	
  Percentage of
  Aggregate Liquidity

  Commitment
  assigned:

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Assignee’s
  Percentage of the Aggregate Liquidity Commitment (in Dollars) and Principal
  Amount of Liquidity Loan Note payable to Assignee after giving effect to such
  sale and assignment:

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Principal Amount
  of Liquidity Loans payable to Assignee after giving effect to such sale and
  assignment:

  	
   

  	
  $                   —

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Assignor’s
  Percentage of the Aggregate Liquidity Commitment after giving effect to such
  sale and assignment:

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Assignor’s
  Percentage of the Aggregate Liquidity Commitment (in Dollars) and Principal
  Amount of Liquidity Loan Note payable to Assignor after giving effect to such
  sale and assignment:

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Principal Amount
  of Liquidity Loans payable to Assignor after giving effect to such sale and
  assignment:

  	
   

  	
  $

  	
   

  

 

 

	
  Effective Date (if
  other than date of acceptance

  	
   

  	
   

  
	
  by
  Administrative Agent):

  	
   

  	
  , 20

  

 

	
   

  	
  [                                                                                                ],

  
	
   

  	
  as Assignor,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  
	
   

  	
  Title

  	
   

  
	
   

  	
   

  
	
   

  	
  Dated
                        ,
  20

  

 

 

	
   

  	
  [                                                                                               ],

  
	
   

  	
  as Assignee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  
	
   

  	
  Title

  	
   

  
	
   

  	
   

  
	
   

  	
  Dated
                            ,
  20

  

 

 

Accepted this
         day  of
                    
20

 

 

	
  JPMORGAN CHASE BANK,
  N.A.,

  	
   

  
	
  as Administrative Agent

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  
	
   

  	
   

  
	
  Title

  	
   

  	
   

  
	
   

  	
   

  
	
  Dated
                            ,
  20

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BUNGE LIMITED,

  	
   

  
	
  as Guarantor

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Title

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated
                              ,
  20Exhibit 10.22

 

Bunge
Limited

 

2007
Non-Employee Directors Equity Incentive Plan

 

Deferred Restricted Stock Unit
Award Agreement

 

 

AGREEMENT made as of the             
day of                   
(the “Grant Date”), between Bunge
Limited, a company incorporated under the laws of Bermuda (“Bunge”), and «Name» (the “Director”).  This Agreement is subject to the provisions
of the Bunge Limited 2007 Non-Employee Directors Equity Incentive Plan (the “Plan”), a copy of which is furnished
to the Director with this Agreement. 
Capitalized terms appearing herein and not otherwise defined shall have
the meanings ascribed to them in the Plan.

 

For valuable consideration, receipt of which is
acknowledged, the parties hereto agree as follows:

 

1.             Number
of Deferred Restricted Stock Units Granted.

 

Bunge hereby grants the Director, subject to the terms
and conditions set forth in this Agreement and in the Plan, an award of                 
Deferred Restricted Stock Units (the “Units”),
representing the right to receive Shares of Bunge’s Common Stock.  The Units shall be subject to the terms and
conditions set forth in the Plan and this Agreement, including, without,
limitation, the restrictions on transfer set forth in Section 5 of this
Agreement.

 

2.             Vesting.

 

(a)           Vesting Schedule.  Subject to earlier
forfeiture or acceleration of vesting as set forth in the Plan and this
Agreement, the Units shall fully vest and become non-forfeitable (becoming “Vested Units”) on the first
anniversary of the Grant Date.

 

(b)           Change in Control.  Unless otherwise determined by the Committee
in its discretion, the Units shall become Vested Units (to the extent not
already vested) immediately prior to the consummation of a Change in Control
transaction.

 

3.             Termination
of Service.

 

Unless otherwise determined by the Committee in its
discretion, in the event that the Director’s service on the Board terminates by
reason of Retirement, death or Permanent Disability or by reason of failure by
the shareholders of Bunge to reelect the Director after he or she was nominated
for re-election to the Board, the Units shall become Vested Units (to the
extent not already vested) immediately upon such termination.  Unless otherwise determined by the Committee
in its discretion, if the Director’s service on the Board terminates for any
other reason, any Unit that is not vested at the time of such termination shall
be forfeited and cancelled without any payment.

 

1

 

4.             Dividend
Equivalent Rights.

 

The Director shall receive Dividend Equivalents on his
or her Units if Bunge pays a regular cash dividend with respect to the Common
Stock with a record date occurring prior to the settlement of such Units.  The Director’s account under the Plan will be
credited with additional Units based on the value of the Dividend Equivalents
received by the Director.  Any such
additional Units shall be considered Units under this Agreement and shall also
be credited with additional Units as regular cash dividends, if any, are
declared, and shall be subject to the same terms and conditions as the Units
with respect to which they were credited. 
Any fractional Dividend Equivalents shall be settled in cash, based on
the Fair Market Value of a Share on the date of payment.  Payment of Dividend Equivalents that have
been credited to the Director’s account will not be made with respect to any
Units that are forfeited or cancelled under the terms of the Plan or this
Agreement.

 

5.             Shareholder
Rights; Restrictions on Transfer.

 

The Director shall not have any rights as a
shareholder with respect to the Shares underlying any Unit until such Shares
have been issued and delivered to the Director in such manner as Bunge, in its
discretion, shall deem appropriate.  The
Director shall not, whether voluntarily or involuntarily, sell, assign,
transfer, pledge, hypothecate or otherwise dispose of, by operation of law or
otherwise, (collectively “transfer”) any Units, or any interest therein, except
as provided in the Plan.  Any transfer of
the Units made, or any attachment, execution, garnishment, or lien issued
against or placed upon Units, other than as so permitted, shall be void.

 

6.             Settlement
of Deferred Restricted Stock Units

 

(a)           Initial Settlement Election Date.  Subject to Section 6(b) below, Shares
attributable to the Vested Units shall be paid out to the Director in a lump
sum on the third anniversary of the Grant Date (any such date, the “Initial Settlement Date”).

 

(b)           Deferral Election.  Subject to such rules and procedures
established by the Committee from time to time, the Director may elect to defer
receipt of the value of all or any portion of the Units until a specified date
subsequent to the Initial Settlement Date.

 

(c)           Specified Employees.  Notwithstanding any provision of this Agreement
to the contrary, if, upon the Director’s termination of service with Bunge for
any reason, Bunge determines the Director is a “specified employee” as defined
in Section 409A of the Code the Units may not be settled before the
earlier of (i) the date which is six months and a day after the Director’s
termination of employment for any reason other than death or (ii) the date
of the Director’s death.  The provisions
of this Section 6(c) shall only apply if required to comply with Section 409A
of the Code.

 

7.             Miscellaneous.

 

(a)           No Rights to
Re-election.  This award does not (i) confer
upon the Director any right to continue as a director of Bunge, (ii) affect
the right of the shareholders of Bunge to remove or decline or re-elect the
Director to the Board (for any 

 

2

 

reason
or no reason), (iii) affect any rights of the Board, or (iv) entitle
the Director to any benefits other than those granted under the Plan and this
Agreement.

 

(b)           Severability.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement and each other provision of this
Agreement shall be severable and enforceable to the extent permitted by law.

 

(c)           Waiver.  Any provision for the benefit of Bunge
contained in this Agreement may be waived, either generally or in any
particular instance, by the Committee.

 

(d)           Binding Effect.  This Agreement shall be binding upon and
inure to the benefit of Bunge and the Director and their respective heirs,
executors, administrators, legal representatives, successors and assigns,
subject to the restrictions on transfer set forth in Section 5 of this
Agreement.

 

(e)           Notice.  All notices and other
communications provided for herein shall be in writing and shall be delivered
by hand, telecopy or facsimile transmission or sent by certified or registered
mail, return receipt requested, postage prepaid, addressed, if to the Director,
to the attention of the Director at the mailing address set forth on this
Agreement (or to such other address as the Director shall have specified to
Bunge in writing) and, if to Bunge, to it at its principal offices which are
currently located at 50 Main Street, 6th Floor, White Plains, New York 10606,
attention: Chief Personnel Officer.  All
such notices shall be conclusively deemed to be received and shall be
effective, (i) if delivered by hand, upon receipt, (ii) if sent by
telecopy or facsimile transmission, upon confirmation of receipt by the sender
of such transmission or (iii) if sent by registered or certified mail, on
the fifth day after the day on which such notice is mailed.

 

(f)            Entire Agreement.  This Agreement and the Plan constitute the
entire agreement between the parties, and supersedes all prior agreements and
understandings, relating to the subject matter of this Agreement.

 

(g)           Access to Plan/Incorporation by
Reference.  The Director hereby
acknowledges that he or she has access to a copy of the Plan as presently in
effect.  The text and all of the terms
and provisions of the Plan, as amended from time to time, are incorporated
herein by reference, and this Agreement is subject to such terms and provisions
in all respects.

 

(h)           Unfunded Plan.  The Plan is unfunded.  Prior to the exercise of any Awards, nothing
contained in the Plan or this Agreement shall give the Director any rights that
are greater than those of a general creditor of Bunge.  The Committee may authorize the creation of
trusts or other arrangements to meet the obligations created under the Plan to
deliver Common Stock with respect to the Units.

 

(i)            Amendment.  The Board may at any time and from time to
time alter, amend, suspend or terminate the Plan in whole or in part,
including, without limitation, to 

 

3

 

amend
the provisions for determining the amount of Awards to be issued to the
Director; provided, however,
that any amendment which under the requirements of applicable law or stock
exchange rule must be approved by the shareholders of Bunge shall not be
effective unless and until such shareholder approval has been obtained in
compliance with such law or rule. 
Further, no termination or amendment of the Plan or this Agreement that
would adversely affect the Director’s rights under the Plan with respect to any
Award made prior to such action shall be effective as to the Director unless he
consents thereto.

 

(j)            Governing Law.  The Plan and this Agreement shall be
construed, interpreted and enforced in accordance with the laws of the State of
New York.

 

 

The Director indicates acceptance of the Deferred
Restricted Stock Unit Award, subject to the terms and conditions set forth in
the Plan and this agreement, by signing this agreement and returning it to the
undersigned representative of Bunge no later than               .  If a signed copy of this Grant Notice is not
received by such date, this Award shall be void and of no force and effect.

 

 

	
  BUNGE LIMITED

  	
  DIRECTOR

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
  «Name»

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  

 

 

 

 

The Director has reviewed with the Director’s own tax
advisors the federal, state, local and foreign tax consequences of the
transactions contemplated by this Agreement. 
The Director is relying solely on such advisors and not on any
statements or representations of Bunge or any of its agents.  The Director understands that the Director
(and not Bunge) shall be responsible for the Director’s own tax liability that
may arise as a result of the transactions contemplated by this Agreement.

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]