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Exhibit 4.7  

 
  SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT    
  

        This SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT is dated as of November 8, 2001 ("Amendment") and is entered into with reference to the FIVE YEAR
CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION ("Borrower"), THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as
Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. All capitalized terms not otherwise defined herein shall have the meanings set forth in the
Credit Agreement. 

        The
Borrower and the Administrative Agent (acting with the consent of the Required Lenders) agree to amend the Credit Agreement as follows: 

        1.    Section 1.01—Amended Definitions.    Section 1.01 of the Credit Agreement is hereby
amended to add the following defined terms thereto, and to amend the definition of "Person" as follows: 

         "Capital Lease Obligations" means all monetary obligations of a Person under any leasing or similar arrangement which, in accordance with Generally Accepted
Accounting Principles, is classified as a capital lease. 

        "Distribution" means, with respect to any shares of capital stock or any warrant or option to purchase an equity security or other equity security issued by
the
Borrower or any of its Subsidiaries, the declaration or payment by the issuer of any dividend or distribution in cash or in other property (other than capital stock, or any warrants or options to
purchase an equity security or other security of such
Person) on or with respect to any such security, provided that no distribution by any Subsidiary of the Borrower that is made pro rata to each of its
equity holders shall be considered to be a Distribution. 

        "Investment" means, when used in connection with any Person, any investment by or of that Person, whether by means of purchase or other acquisition of stock or
other debt securities or equity securities of any other Person. The amount of any Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the
value of such Investment. 

         "Person" means an individual, a corporation, a partnership, a limited liability company, an association, a trust or any other entity or organization,
including a
government or political subdivision or an agency or instrumentality thereof. 

        "Project Capital Expenditure" means any cash expenditure for or related to fixed assets or purchased intangibles that is treated as a capital expenditure under
Generally Accepted Accounting Principles, including any amount which is required to be treated as an asset subject to a Capital Lease Obligation, but  excluding any capital expenditure made to maintain, repair, refurbish or remodel any existing capital assets of Borrower or its Subsidiaries. 

         "Redemption" means, with respect to any shares of capital stock or any warrant or option to purchase an equity security or other equity security issued by the
Borrower, the retirement, redemption, purchase or other acquisition for cash or for other property (other than capital stock, or any warrants or options to purchase an equity security or other
security of such Person) by the issuer of any such security. 

        2.    Section 5.06(h)—Negative Pledge.    Section 5.06(h) of the Credit Agreement is amended
to read in its entirety as follows: 

"(h)    Liens
not otherwise permitted by the foregoing clauses of this Section which secure indebtedness in an aggregate principal amount which is not in excess of 10% 

1

 

of Consolidated Net Tangible Assets (determined as of the date of the incurrence of such Liens by reference to the then most recent date for which Borrower has delivered its financial statements
under Section 5.01(a) or Section 5.01(b), as applicable), and encumbering assets which have a value, as determined by the board of directors of the Borrower in connection with the
incurrence of each such Lien, which the board of directors of Borrower determines is reasonably related to the amount of the indebtedness secured thereby." 

        3.    Section 5.09—Leverage Ratio.    Section 5.09 of the Credit Agreement is amended to
read in its entirety as follows: 

        "5.09    Leverage Ratio.    The Leverage Ratio will not, as of the last day of any fiscal quarter of Borrower
described in the matrix below, exceed the ratio set forth opposite that fiscal quarter: 

	Fiscal Quarters Ending
 
	 	Maximum Ratio

	September 30, 2001	 	4.75:1.00
	

December 31, 2001	
 	

5.50:1.00
	

March 31, 2002	
 	

6.00:1.00
	

June 30, 2002 and September 30, 2002	
 	

6:25:1.00
	

December 31, 2002	
 	

5.50:1.00
	

March 31, 2003	
 	

5.25:1.00
	

June 30, 2003	
 	

4.75:1.00
	

September 30, 2003 and thereafter	
 	

4.50:1.00."

        4.    Section 5.10—Interest Coverage Ratio.    Section 5.10 of the Credit Agreement is
amended to read in its entirety as follows: 

        "5.10    Interest Coverage Ratio.    The Interest Coverage Ratio shall not, as of the last day of any fiscal quarter
of Borrower, be less than the ratio set forth opposite that quarter in the matrix set forth below: 

	Fiscal Quarters Ending
 
	 	Minimum Ratio

	September 30, 2001 and December 31, 2001	 	2.50:1.00
	

March 31, 2002	
 	

2.40:1.00
	

June 30, 2002 and September 30, 2002	
 	

2.25:1.00
	

December 31, 2002 and thereafter	
 	

2.50:1.00."

        5.    New Section 5.11—Certain Covenants Contingent Upon the Leverage Ratio.    The Credit
Agreement is hereby amended to add a new Section 5.11 thereto, to read in full as follows: 

        "5.11    Certain Covenants Contingent Upon Leverage Ratio.    If, as of the last day of any fiscal quarter of Borrower
(a "Test Date"), the Leverage Ratio exceeds (a) 5.00:1.00 as of any Test Date occurring on or before March 31, 2002, or (b) 4.75:1.00 as of any Test Date occurring after
March 31, 2002 then, from and after such Test Date and until the Leverage Ratio is reduced as of any subsequent Test Date to the applicable ratio described above in this Section, Borrower shall
not, and shall not permit its Subsidiaries to: 

        (a)  Make
or declare any Distribution which would result in the aggregate amount of the Distributions made during the twelve month period ending on the record date for such 

2

 

Distribution being in excess of $35,000,000 minus the aggregate amount of Project Capital Expenditures made pursuant to Section 5.11(b)(y); 

        (b)  Make
any Project Capital Expenditure following the Test Date which would result in the aggregate Project Capital Expenditures made during the period between Test Date
and December 31, 2002 (the "Test Period") being in excess, or commit following the Test Date to make any Project Capital
Expenditure during the Test Period which, if made, would result in the aggregate Project Capital Expenditures made during the Test Period being in excess, of the sum of (x) $125,000,000  plus
(y) the difference between (i) $35,000,000, and (ii) the aggregate amount of Distributions made pursuant to
Section 5.11(a); 

        (c)  Make
any Redemption or prepay, repurchase, redeem, retire or acquire, prior to the date when due, any Debt for borrowed money, other
than (x) repayments of revolving credit facilities and (y) refinancings of outstanding Debt for borrowed money using the proceeds of Debt (other than revolving
loans); or 

        (d)  Make
any Investment in the equity securities or debt securities of any person or entity which is not a Subsidiary of Borrower which are, when aggregated with all other
such Investments made following the Test Date, in excess of $25,000,000." 

        6.    Section 6.01(b).    Section 6.01(b) of the Credit Agreement is amended to read in its entirety as
follows: 

        "(b) the
Borrower shall fail to observe or perform any covenant contained in Sections 5.06 to 5.11, inclusive or;" 

        7.    Prepayment Obligation.    Borrower hereby agrees that if, as of the date of incurrence by Borrower or any of its
Subsidiaries of any Debt for borrowed money (other than any Debt incurred to refinance other outstanding Debt) which when aggregated with all other such Debt incurred following the date hereof, is in
an aggregate principal amount in excess of $250,000,000, after giving pro forma effect to such incurrence and the application of the proceeds of such
Debt in computing the Leverage Ratio as of the then most recently ended fiscal quarter of Borrower, such pro forma Leverage Ratio is greater than
5.00:1.00, then Borrower shall immediately apply the net cash proceeds of such Debt to prepay the outstanding Loans to the extent required to reduce the pro
forma Leverage Ratio to a ratio not greater than 5.00:1.00. To the extent that the Loans hereunder are so repaid, the Commitments shall concurrently be automatically and
permanently reduced by the amount of such prepayment. 

        8.    Pricing Adjustment.    The definitions of "Facility Fee Rate" and "Margin Adjustment" set forth in the Pricing
Schedule to the Credit Agreement are amended to read in full as follows with prospective effect from the date of this Amendment: 

         "Facility Fee Rate" means (i) the lesser of (x) the rate per annum (expressed in basis points) set
forth in the Pricing Matrix opposite the Applicable Debt Rating as of that date in the column headed "Facility Fee Rate" and (y) the rate per annum (expressed in basis points) set forth in the
Pricing Matrix opposite the Applicable Leverage Ratio as of that date in the column headed "Facility Fee Rate" plus any (ii) applicable Margin
Adjustment. 

         "Margin Adjustment" means an adjustment to the Base Rate Margin, Euro-Dollar Margin, and the Facility Fee equal, (a) during each Pricing Period
in which clauses (b), (c) and (d) hereof do not apply and for which the Applicable Leverage Ratio is equal to or less than 4.75:1.00, 0 basis points, (b) during each fiscal
quarter ending on or before March 31, 2002 for which the Applicable Leverage Ratio is in excess of 4.75:1.00 or during any fiscal quarter ending after March 31, 2002 for which the
Applicable Leverage Ratio is in excess of 4.50:1.00, 7.5 basis points with respect to the Base Rate Margin and Euro-Dollar Margin and 2.5 basis points with respect to the Facility Fee
Rate, (c) during any fiscal quarter for which the Applicable Leverage Ratio is in excess of 

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5.50:1.00, an additional 7.5 basis points with respect to the Base Rate Margin and Euro-Dollar Margin and an additional 2.5 basis points with respect to the Facility Fee Rate and
(d) during any fiscal quarter for which the Applicable Leverage Ratio is in excess of 6.00:1.00, an additional 12.5 basis points with respect to the Base Rate Margin and Euro-Dollar
Margin and an additional 2.5 basis points with respect to Facility Fee Rate, provided in each case that if Borrower fails to deliver any Compliance
Certificate or Pricing Certificate on the date when required by Section 5.01, and it is ultimately determined that the Applicable Leverage Ratio would have resulted in an increased adjustment
to the Base Rate Margin, the Euro-Dollar Margin or the Facility Fee Rate, then (i) the rates at which interest and Facility Fees accrue under the Credit Agreement shall be increased
in accordance with this Schedule, with retroactive effect to the first day of the Pricing Period to which such Compliance Certificate or Pricing Certificate relates, and (ii) Borrower shall,
within 10 Domestic Business Days of a request by the Administrative Agent, make such additional payments to the Lenders through the Administrative Agent as are required to give effect to such
increased interest rates and Facility Fee Rates in respect of any payments previously made by Borrower. 

        9.    Condition Precedent.    The effectiveness of this Amendment shall be conditioned upon the receipt by the
Administrative Agent of: 

        (a)  payment
to the Administrative Agent of a fee of 5 basis points times the amount of the Commitment for the account of those Lenders which have signed consents hereto on
or prior to October 26, 2001 together with an arrangement fee for the sole account of the Administrative Agent in an amount set forth in a letter agreement with the Administrative Agent; and 

        (b)  written
consents to the execution and delivery of this Amendment from the Required Lenders. 

        10.    Representation and Warranty.    Borrower represents and warrants to the Administrative Agent and the Lenders
that no Default or Event of Default has occurred and remains continuing. 

        11.    Confirmation.    In all other respects, the terms of the Credit Agreement and the other Loan Documents are
hereby confirmed. 

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

	 	 	HILTON HOTELS CORPORATION
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  MARIEL C. ALBRECHT      

	 	 	Name:	 	Mariel C. Albrecht
	 	 	Title:	 	Senior Vice President and Treasurer
	

 	
 	

 	
 	

 
	

 	
 	

BANK OF AMERICA, N.A., as Administrative Agent
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  JANICE HAMMOND      
 Janice Hammond, Vice President

4

  

 
 

CONSENT OF LENDER    
  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	BANK OF AMERICA, N.A.
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  MARK GREGOR-PEARSE      
 Managing Director

5

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	THE BANK OF NOVA SCOTIA
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  M. VAN OTTERLOO      
 Managing Director, Corporate

6

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	FIRST UNION NATIONAL BANK
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  DOUGLAS A. NICKEL      
 Vice President

7

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	WACHOVIA BANK, N.A.
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  DOUGLAS A. NICKEL      
 Vice President

8

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	CREDIT LYONNAIS NEW YORK BRANCH
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  JOSEPH A. ASCIOLLA      
 First Vice President

9

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	Westdeutsche Landesbank Girozentrale
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  BARRY S. WADLER      
 Associate Director
	

 	
 	

By:	
 	

/s/  LISA M. WALKER      
 Associate Director

10

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	SOCIETE GENERALE
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  THOMAS K. DALY      
 Managing Director

11

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	BANK ONE, N.A.
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  DENNIS J. REDPATH      
 Director, Capital Markets

12

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	ARAB BANK PLC
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  JOHN KORTHUIS      
 Vice President

13

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	BANK OF HAWAII
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  JAMES POLK      
 Vice President

14

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	BNP PARIBAS
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  JANICE S.H. HO      
 Director
	

 	
 	

By:	
 	

/s/  TJALLING TERPSTRA      
 Director

15

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	THE DAI-ICHI KANGYO BANK, LTD.
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  CHIMIE T. PEMBA      
 Account Officer

16

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	FIRST HAWAIIAN BANK
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  CHARLES L. JENKINS      
 Vice President, Manager

17

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	First Tennessee Bank National Association
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  JAMES H. MOORE, JR.      
 Senior Vice President

18

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	The Industrial Bank of Japan, Limited
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  VICENTE L. TIMIRAOS      
 Joint General Manager

19

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	KBC BANK, N.V.
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  ROBERT SNAUFFER      
 First Vice President
	

 	
 	

By:	
 	

/s/  ERIC RASKIN      
 Vice President

20

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	LA SALLE BANK NATIONAL ASSOCIATION
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  ERICA WICHLANDER      
 Commercial Banking Officer

21

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	The Mitsubishi Trust and Banking Corporation
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  KEISUKE NAKAJIMA      
 General Manager

22

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	THE NORTHERN TRUST COMPANY
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  NICOLE D. BOEHM      
 Second Vice President

23

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	U. S. BANK NATIONAL ASSOCIATION
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  SCOTT J. BELL      
 Vice President

24

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	WELLS FARGO BANK, N.A.
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  LUCY NIXON      
 Vice President

25

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	BANK OF CHINA, LOS ANGELES BRANCH
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  HAIPING LIU      
 Branch Manager

26

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	THE BANK OF EAST ASIA, LIMITED
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  VICTOR LI      
 Vice President & General Manager
	

 	
 	

By:	
 	

/s/  JAMES LIN      
 Business Manager

27

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	THE CHUGOKU BANK, LTD.
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  ATSUO KUBOTSU      
 General Manager

28

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	FLEET NATIONAL BANK
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  BILL LAMB      
 Vice President

29

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	HUA NAN COMMERCIAL BANK, LTD.

LOS ANGELES BRANCH
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  GEORGE SHENG-I CHANG      
 Senior Vice President & General Manager

30

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	LBS BANK—NEW YORK
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  ANDREW BASTONE      
 Deputy President & Deputy CEO
	

 	
 	

By:	
 	

/s/  BENOIT K. SIMARD      
 Vice President

31

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	PNC BANK NATIONAL ASSOCIATION
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  GARY W. WESSELS      
 Vice President

32

 
CONSENT OF LENDER  

        Reference is hereby made to that certain FIVE YEAR CREDIT AGREEMENT dated as of November 30, 1999 (the "Credit Agreement") among HILTON HOTELS CORPORATION,
THE BANK OF NOVA SCOTIA, FIRST UNION NATIONAL BANK AND WACHOVIA BANK, as Syndication Agents, the Lenders who are parties thereto, and BANK OF AMERICA, N.A., as Administrative Agent. 

        The
undersigned Lender hereby consents to the execution and delivery of the SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT by the Administrative Agent on its behalf, substantially in the
form of the most recent draft thereof presented to the undersigned Lender. 

Dated:                        ,
2001 

	 	 	TAIPEIBANK, NEW YORK AGENCY
 [Name of Institution]
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  SOPHIA JING      
 Vice President & General Manager

33

QuickLinks

SECOND AMENDMENT TO FIVE YEAR CREDIT AGREEMENT

CONSENT OF LENDERQuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 4.8  

CONFORMED  

SHORT TERM CREDIT AGREEMENT  

dated as of 

November 27,
2001 

among

 HILTON HOTELS CORPORATION  

 The Lenders and Syndication Agents Referred to Herein  

and

 BANK OF AMERICA, N.A.,

as Administrative Agent  

BANC OF AMERICA SECURITIES LLC

Lead Arranger and Sole Book Manager  

 
 
 

TABLE OF CONTENTS    
  

	 
	 	Page

	ARTICLE I	 	 
	 	 	

DEFINITIONS	
 	

1
	 	 	1.01 Definitions	 	1
	 	 	1.02 Accounting Terms and Determinations	 	10
	 	 	1.03 Types of Borrowings	 	10
	

ARTICLE II	
 	

 
	 	 	

THE CREDITS	
 	

11
	 	 	2.01 Commitments to Lend	 	11
	 	 	2.02 Notice of Borrowings	 	11
	 	 	2.03 [Reserved]	 	11
	 	 	2.04 [Reserved]	 	11
	 	 	2.05 Conversion and Continuation of Loans	 	11
	 	 	2.06 Notice to Lenders; Funding of Loans	 	12
	 	 	2.07 Notes	 	12
	 	 	2.08 Interest Rates	 	13
	 	 	2.09 Administrative Agency Fees	 	13
	 	 	2.10 Upfront Fees	 	13
	 	 	2.11 Facility Fees	 	13
	 	 	2.12 Mandatory Prepayments	 	14
	 	 	2.13 Optional Termination or Reduction of Commitments by Borrower	 	14
	 	 	2.14 Optional Termination of Commitments by the Lenders	 	14
	 	 	2.15 Scheduled Termination of Commitments	 	14
	 	 	2.16 Optional Prepayments	 	14
	 	 	2.17 General Provisions as to Payments	 	15
	 	 	2.18 Funding Losses	 	15
	 	 	2.19 Computation of Interest and Fees	 	15
	 	 	2.20 Withholding Tax Exemption	 	15
	 	 	2.21 [Reserved]	 	16
	 	 	2.22 Regulation D Compensation	 	16
	 	 	2.23 Extension of the Termination Date	 	16
	 	 	2.24 Increased Commitments; Additional Lenders	 	17
	

ARTICLE III	
 	

 
	 	 	

CONDITIONS	
 	

17
	 	 	3.01 Borrowings	 	17
	 	 	3.02 Effective Date	 	18
	

ARTICLE IV	
 	

 
	 	 	

REPRESENTATIONS AND WARRANTIES	
 	

19
	 	 	4.01 Corporate Existence and Power	 	19
	 	 	4.02 Corporate and Governmental Authorization; Contravention	 	19
	 	 	4.03 Binding Effect	 	19
	 	 	4.04 Financial Information	 	19
	 	 	4.05 Litigation	 	19
	 	 	4.06 Compliance with ERISA	 	20
	 	 	4.07 Taxes	 	20
	 	 	4.08 Significant Subsidiaries	 	20
	 	 	4.09 Not an Investment Company	 	20
	 	 	4.10 Environmental Matters	 	20
	 	 	4.11 Full Disclosure	 	20
	

ARTICLE V	
 	

 
	 	 	

COVENANTS	
 	

21
	 	 	5.01 Informatin	 	21
	 	 	5.02 Maintenance of Property; Insurance	 	22
	 	 	5.03 Conduct of Business and Maintenance of Existence	 	22
	 	 	5.04 Compliance with Laws	 	23
	 	 	5.05 Inspection of Property, Books and Records	 	23
	 	 	5.06 Negative Pledge	 	23
	 	 	5.07 Consolidations, Mergers and Sales of Assets	 	24
	 	 	5.08 Use of Proceeds	 	24
	 	 	5.09 Leverage Ratio	 	24

i

 

	 	 	5.10 Interest Coverage Ratio	 	25
	 	 	5.11 Certain Covenants Contingent Upon Leverage Ratio	 	25
	

ARTICLE VI	
 	

 
	 	 	

DEFAULTS	
 	

25
	 	 	6.01 Events of Default	 	25
	 	 	6.02 Notice of Default	 	27
	

ARTICLE VII	
 	

 
	 	 	

THE ADMINISTRATIVE AGENT	
 	

28
	 	 	7.01 Appointment and Authorization	 	28
	 	 	7.02 Administrative Agent and Affiliates	 	28
	 	 	7.03 Action by the Administrative Agent	 	28
	 	 	7.04 Consultation with Experts	 	28
	 	 	7.05 Liability of Agent	 	28
	 	 	7.06 Indemnification	 	28
	 	 	7.07 Credit Decision	 	28
	 	 	7.08 Successor Agent	 	29
	 	 	7.09 Administrative Agents' Fees	 	29
	

ARTICLE VIII	
 	

 
	 	 	

CHANGE IN CIRCUMSTANCES	
 	

30
	 	 	8.01 Basis for Determining Interest Rate Inadequate or Unfair	 	30
	 	 	8.02 Illegality	 	30
	 	 	8.03 Increased Cost and Reduced Return	 	30
	 	 	8.04 Base Rate Loans Substituted for Affected Euro-Dollar Loans	 	32
	

ARTICLE IX	
 	

 
	 	 	

MISCELLANEOUS	
 	

33
	 	 	9.01 Notices	 	33
	 	 	9.02 No Waivers	 	33
	 	 	9.03 Expenses; Documentary Taxes; Indemnification	 	33
	 	 	9.04 Amendments and Waivers	 	33
	 	 	9.05 Successors and Assigns	 	34
	 	 	9.06 New York Law; Submission to Jurisdiction	 	36
	 	 	9.07 Counterparts; Integration	 	36
	 	 	9.08 Several Obligations	 	37
	 	 	9.09 Sharing of Set-Offs	 	37
	 	 	9.10 WAIVER OF JURY TRIAL	 	37

ii

  

 
 

SHORT TERM CREDIT AGREEMENT    
  

        SHORT TERM CREDIT AGREEMENT dated as of November 27, 2001, among HILTON HOTELS CORPORATION ("Borrower"), the Lenders who are parties hereto from time to
time, WACHOVIA BANK, N.A., FIRST UNION NATIONAL BANK, THE BANK OF NEW YORK and THE BANK OF NOVA SCOTIA, as Syndication Agents, and BANK OF AMERICA, N.A., as Administrative Agent. While not a party
hereto, Banc of America Securities, LLC has acted as Lead Arranger and sole book manager of the credit facilities described herein. The parties hereto agree as follows: 

 
 

ARTICLE I    
    
    DEFINITIONS    
  

        1.01    Definitions.    The following terms, as used herein, have the following meanings: 

         "Additional Lender" has the meaning set forth in Section 2.24(b). 

        "Administrative Agent" means Bank of America, N.A. in its capacity as administrative agent for the Lenders hereunder, and its successors in such capacity.

         "Administrative Questionnaire" means, with respect to each Lender, an administrative questionnaire in the form prepared by the Administrative Agent and
submitted
to the Administrative Agent (with a copy to the Borrower) duly completed by such Lender. 

         "Affiliate" means, as to any Lender, any other Person which directly or indirectly controls, or is under common control with, or is controlled by, such
Lender. As
used in this definition, "control" (and the correlative terms, "controlled by" and "under common control with") shall mean possession, directly or indirectly, of power to direct or cause the direction
of management or policies (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise); provided
that, in any event, any Person that owns, directly or indirectly, 25% or more of the securities having ordinary voting power for the election of directors or other governing body of a corporation, or
25% or more of the partnership or other ownership interests of any other Person, will be deemed to control such corporation or other Person. 

        "Agreement" means this Short Term Credit Agreement, either as originally executed or as it may from time to time be supplemented, modified, amended, restated
or
extended. 

         "Allocation Notice" means a written communication submitted to each Lender by the Lead Arranger prior to the date hereof, setting forth the allocated
Commitment
of each Lender as of the Effective Date. 

         "Applicable Lending Office" means, with respect to any Lender, (i) in the case of its Base Rate Loans, its Domestic Lending Office and (ii) in the
case of its Euro-Dollar Loans, its Euro-Dollar Lending Office. 

         "Authorized Officer" means any of the controller, the treasurer or the chief financial officer of the Borrower. 

         "Bank of America" means Bank of America, N.A., its successors and assigns. 

         "Base Rate" means, as of any date of determination, the rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal to the  higher of (a) the Prime Rate in effect on such date (calculated on the basis of a year of 365 or 366 days and the actual number of days
elapsed) and (b) the Federal Funds Rate in effect on such date (calculated on the basis of a year of 360 days and the actual number of days elapsed) plus  1/2 of 1%
(50 basis points). 

1

 

         "Base Rate Loan" means a Loan made or to be made by a Lender as a Base Rate Loan in accordance with the applicable Notice of Borrowing or Notice of
Conversion/Continuation or pursuant to Article VIII. 

        "Base Rate Margin" has the meaning set forth on the Pricing Schedule. 

         "Benefit Arrangement" means at any time an employee benefit plan within the meaning of Section 3(3) of ERISA which is not a Plan or a Multiemployer Plan
and which is maintained or otherwise contributed to by any member of the ERISA Group. 

         "Borrower" means Hilton Hotels Corporation, a Delaware corporation, and its successors. 

        "Borrowing" means the aggregation of Loans of one or more Lenders to be made to the Borrower pursuant to Article II on a single date and, in the case of
Eurodollar Rate Loans, for a single Interest Period. 

         "Capital Lease Obligations" means all monetary obligations of a Person under any leasing or similar arrangement which, in accordance with Generally Accepted
Accounting Principles, is classified as a capital lease. 

         "Change of Control" means the occurrence of a Ratings Decline in connection with any of the following events: (i) upon any merger or consolidation of the
Borrower with or into any person or any sale, transfer or other conveyance, whether direct or indirect, of all or substantially all of the assets of the Borrower, on a consolidated basis, in one
transaction or a series of related transactions, if, immediately after giving effect to such transaction, any person or group of persons (within the meaning of Section 13 or 14 of the
Securities Exchange Act of 1934, as amended) is or becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated by the Securities and Exchange Commission under said
Act) of securities representing a majority of the total voting power of the aggregate outstanding securities of the transferee or surviving entity normally entitled to vote in the election of
directors, managers, or trustees, as applicable, of the transferee or surviving entity, (ii) when any person or group of persons (within the meaning of Section 13 or 14 of the Securities
Exchange Act of 1934, as amended) is or
becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated by The Securities and-Exchange Commission under said Act) of securities representing a
majority of total voting power of the aggregate outstanding securities of the Borrower normally entitled to vote in the election of directors of the Borrower, (iii) when, during any period of
12 consecutive calendar months, individuals who were directors of the Borrower on the first day of such period (together with any new directors whose election by the board of directors of the Borrower
or whose nomination for election by the stockholders of the Borrower was approved by a vote of a majority of the directors then still in office who were either directors at the beginning of such
period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the board of directors of the Borrower, or (iv) the sale or
disposition, whether directly or indirectly, by the Borrower of all or substantially all of its assets. 

         "Commitment" means, as to each Lender, the commitment of that Lender to make Loans as such amount may be reduced from time to time pursuant to
Section 2.13, 2.14, 2.15, or 2.16 or increased from time to time pursuant to Section 2.24. The aggregate amount of the Commitments under this Agreement as of the Effective Date is
$150,000,000. As of the Effective Date, each Lender shall hold a Commitment in the amount set forth in its Allocation Notice. 

        "Compliance Certificate" means a certificate, substantially in the form of Exhibit A, properly completed and signed by an Authorized Officer. 

2

 

         "Consolidated Debt" means at any date the Debt of the Borrower and its Subsidiaries, determined on a consolidated basis as of such date  provided that Consolidated Debt shall exclude (A) the PPE Assumed Notes, and (B) Debt of the Borrower or a Subsidiary as to which a sum of
cash and cash equivalents sufficient to provide for payment in full of such Debt at its scheduled maturity or at an earlier date at which it shall have been called for redemption shall have been
irrevocably deposited in trust for the benefit of the holders of such Debt or a representative of such holders so as to result in legal or in substance defeasance thereof;  provided, further, that,
notwithstanding clause (A) in the foregoing proviso, if Park Place fails to pay when due any principal of or interest on
or any other amount with respect to the PPE Assumed Notes or reimburse the Borrower for payment thereof, and such failure is continuing, on and after the 90th day after such payment default first
occurs, any of the PPE Assumed Notes then outstanding shall be included in Consolidated Debt, unless such Debt then would be excluded therefrom pursuant to clause (B) in the foregoing proviso. 

         "Consolidated EBITDA" means, for any period, Consolidated Net Income for such period before (i) income taxes, (ii) interest expense,
(iii) depreciation and amortization, (iv) minority interest,
(v) extraordinary losses or gains, (vi) Pre-Opening Expenses, (vii) discontinued operations and (viii) nonrecurring non-cash charges;  provided that: 

        (a)  Consolidated
EBITDA for any period shall be adjusted on a pro forma basis (i) to include (or exclude) amounts attributable to hotel operations acquired (or sold
or otherwise discontinued) during such period as if such acquisition (or disposition) had occurred on the first day of such period and (ii) to include amounts (annualized on a simple arithmetic
basis) attributable to hotel projects which commenced operations during such period and were in operation for at least one full fiscal quarter during such period; 

        (b)  for
purposes of determining Consolidated EBITDA for any period, Consolidated Net Income shall exclude any interest income attributable to the assumption or payment by
Park Place of the PPE Assumed Notes; and 

        (c)  the
operating results of each New Project which commences operations and records not less than one full fiscal quarter's operations during the relevant period shall be
annualized on a simple arithmetic basis. 

         "Consolidated Interest Expense" means, for any period, net interest expense of the Borrower and its Subsidiaries for such period, determined in accordance
with
generally accepted accounting principles. 

        "Consolidated Net Income" means, for any period, the consolidated net income of the Borrower and its Subsidiaries for such period determined in accordance with
generally accepted accounting principles. 

         "Consolidated Net Tangible Assets" means the total assets of the Borrower and its Subsidiaries, after deducting therefrom (a) all current liabilities of
the Borrower and its Subsidiaries (excluding (i) the current portion of long term indebtedness, (ii) inter-company liabilities, and (iii) any liabilities which are by their terms
renewable or extendable at the option of the obligor thereon to a time more than twelve months from the time as of which the amount thereof is being computed), and (b) all goodwill, trade
names, trademarks, patents, unamortized debt discount and expense and other like intangibles, all as set forth on the latest consolidated balance sheet of the Borrower prepared in accordance with
generally accepted accounting principles. 

         "Covered Subsidiary" means at any time any Subsidiary of the Borrower that has consolidated assets in an amount greater than $5,000,000. 

3

 

         "Debt" of any Person means at any date, without duplication, (i) all obligations of such Person for borrowed money, (ii) all obligations of such
Person evidenced by bonds, debentures, notes or other similar instruments, (iii) all obligations of such Person to pay the deferred purchase price of property or services, except trade accounts
payable arising in the ordinary course of business and obligations in the nature of deferred employee compensation to the extent that such deferred employee compensation obligations do not exceed
$150,000,000, in the aggregate, (iv) all obligations of such Person as lessee under leases which are capitalized in accordance with generally accepted accounting principles, (v) all
other obligations secured by a Lien on any asset of such Person, whether or not such obligations are otherwise an obligation of such Person, in an amount equal to the lesser of the amount of the
obligation so secured or the fair value of the assets subject to such Lien, and (vi) all obligations of others constituting "Debt" under the foregoing clauses of this paragraph which are
guaranteed by such Person; it being understood that "Debt" does not include contingent obligations of such Person to reimburse any other Person in respect of surety bonds or letters of credit. 

        "Default" means any condition or event which constitutes an Event of Default or which with the giving of notice or lapse of time or both would, unless cured or
waived, become an Event of Default. 

         "Distribution" means, with respect to any shares of capital stock or any warrant or option to purchase an equity security or other equity security issued by
the
Borrower or any of its Subsidiaries, the declaration or payment by the issuer of any dividend or distribution in cash or in other property (other than capital stock, or any warrants or options to
purchase an equity security or other security of such Person) on or with respect to any such security, provideÂd that no distribution by
any Subsidiary of the Borrower that is made pro rata to each of its equity holders shall be considered to be a Distribution. 

         "Dollars" and the sign "$" mean lawful money of the United States of America. 

         "Domestic Business Day" means any day except a Saturday, Sunday or other day on which commercial banks in New York City or Los Angeles are authorized or
required
by law to close. 

        "Domestic Lending Office" means, as to each Lender, its office located at its address set forth in its Administrative Questionnaire (or identified in its
Administrative Questionnaire as its Domestic Lending
Office) or such other office as such Lender may hereafter designate as its Domestic Lending Office by notice to the Borrower and the Administrative Agent. 

         "Effective Date" means the first date upon which each of the conditions precedent set forth in Section 3.02 of this Agreement are satisfied or waived in
writing by the Administrative Agent with the consent of all of the Lenders. 

        "Eligible Assignee" means (a) another Lender, (b) with respect to any Lender, any Affiliate of that Lender, (c) any commercial bank having a
combined capital and surplus of $500,000,000 or more, (d) any (i) savings bank, savings and loan association or similar financial institution or (ii) insurance company which, in
either case (A) has a net worth of $500,000,000 or more, (B) is regularly engaged in the business of lending money and extending credit under credit facilities substantially similar to
those extended under this Agreement and (C) is operationally and procedurally able to meet the obligations of a Lender hereunder to the same degree as a commercial bank and (e) any other
financial institution (including a mutual fund or other fund) having total assets of $250,000,000 or more which meets the requirements set forth in
subclauses (B) and (C) of clause (d) above; provided that each Eligible Assignee must either (a) be organized under the laws
of the United States of America, any State thereof or the District of Columbia or (b) be organized under the laws of the Cayman Islands or any country which is a member of the 

4

 

Organization for Economic Cooperation and Development, or a political subdivision of such a country, and (i) act hereunder through a branch, agency or funding office located in the United
States of America and (ii) is otherwise exempt from withholding of tax on interest and delivers a Form W8-ECI or W8-BEN or other appropriate tax withholding form
pursuant to Section 2.20 at the time of any assignment pursuant to Section 9.05. 

         "Environmental Laws" means any and all statutes, regulations, permits, licenses or other governmental restrictions relating to the environment or to releases
of
petroleum or petroleum products, chemicals or toxic or hazardous substances or wastes into the environment. 

        "ERISA" means the Employee Retirement Income Security Act of 1974, as amended, or any successor statute. 

         "ERISA Group" means the Borrower, any Subsidiary of the Borrower and all members of a controlled group of corporations and all trades or businesses (whether
or
not incorporated) under common control which, together with the Borrower or any Subsidiary of the Borrower, are treated as a single employer under Section 414 of the Internal Revenue Code. 

        "Euro-Dollar Business Day" means any Domestic Business Day on which commercial banks are open for international business (including dealings in Dollar
deposits) in London. 

         "Euro-Dollar Lending Office" means, as to each Lender, its office, branch or affiliate located at its address set forth in its Administrative
Questionnaire (or identified in its Administrative Questionnaire as its Euro-Dollar Lending Office) or such other office, branch or affiliate of such Lender as it may hereafter designate
as its Euro-Dollar Lending Office by notice to the Borrower and the Administrative Agent. 

        "Euro-Dollar Loan" means a Loan made or to be made by a Lender designated as such in accordance with the applicable Notice of Borrowing or Notice of
Conversion/Continuation and bearing interest with reference to the London Interbank Offered Rate. 

         "Euro-Dollar Margin" has the meaning set forth on the Pricing Schedule. 

         "Euro-Dollar Reserve Percentage" means for any day that percentage (expressed as a decimal) which is in effect on such day, as prescribed by the Board
of Governors of the Federal Reserve System (or any successor) for determining the maximum reserve requirement for a member bank of the Federal Reserve System with deposits exceeding five billion
Dollars in respect of "eurocurrency liabilities" (or in respect of any other category of liabilities which includes deposits by reference to which the interest rate on Euro-Dollar Loans is
determined or any category of extensions of credit or other assets which includes loans by a non-United States office of any bank to United States residents). 

         "Event of Default" has the meaning set forth in Section 6.01. 

        "Excluded Taxes" means (a) taxes or assessments on or measured by or upon the overall net income, gross income or gross receipts of lenders generally, and
(b) franchise taxes levied upon lenders generally. 

         "Existing Short Term Facility" means the Short Term Credit Agreement dated as of November 28, 2000, among the Borrower, the lenders named therein, and
Bank
of America, N.A., as Administrative Agent, as amended. 

         "Facility Fee Rate" has the meaning set forth on the Pricing Schedule. 

5

 

         "Federal Funds Rate" means, for any day, the rate per annum (rounded upward, if necessary, to the nearest 1/100th of l%) equal to the weighted average of the
rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the
Domestic Business Day next succeeding such day, provided that (i) if such day is not a Domestic Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the
next preceding Domestic Business Day as so published on the next succeeding Domestic Business Day, and (ii) if no such rate is so published on such next succeeding Domestic Business Day, the
Federal Funds Rate for such day shall be the average rate quoted to the Administrative Agent on such day on such transactions as determined by the Administrative Agent. 

         "Granting Lender" has the meaning set forth in Section 9.05(f). 

         "Guarantee" by any Person means any obligation, contingent or otherwise, of such Person directly or indirectly guaranteeing any Debt of any other Person and,
without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person (i) to purchase or pay (or advance or supply funds for the purchase
or payment of) such Debt (whether arising by virtue of partnership arrangements, by agreement to keep-well, to purchase assets, goods, securities or services, to
take-or-pay, or to maintain financial statement conditions or otherwise) or (ii) entered into for the purpose of assuring in any other manner the holder of such Debt of
the payment thereof or to protect such holder against loss in respect thereof (in whole or in part), provided that the term Guarantee shall not include (x) endorsements for collection or
deposit in the ordinary course of business or (y) performance or completion guarantees. The term "Guarantee" used as a verb has a corresponding meaning. 

        "Increased Commitments" has the meaning set forth in Section 2.24. 

         "Indemnitee" has the meaning set forth in Section 9.03(b). 

         "Interest Coverage Ratio" means, as of the last day of each fiscal quarter, the ratio of (a) Consolidated EBITDA for the four fiscal quarters ending on
that date, to (b) Consolidated Interest Expense for the same period. 

        "Interest Period" means, with respect to each Euro-Dollar Borrowing, the period commencing on the date of such Borrowing and ending one week or 1, 2,
3 or 6 months thereafter, as the Borrower may elect in the applicable Notice of Borrowing or Notice of Conversion/Continuation; provided that: 

        (a)  any
Interest Period which would otherwise end on a day which is not a Euro-Dollar Business Day shall be extended to the next succeeding
Euro-Dollar Business Day unless such Euro-Dollar Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding
Euro-Dollar Business Day; 

        (b)  any
Interest Period which begins on the last Euro-Dollar Business Day in a calendar month (or on a day for which there is no numerically corresponding day in
the calendar month at the end of such Interest Period) shall, subject to clause (a)(iii) below, end on the last Euro-Dollar Business Day in the calendar month which is the
last calendar month which commences in such Interest Period; and 

        (c)  any
Interest Period which would otherwise end after the Termination Date shall end on the Termination Date, or, if such date is not a Euro-Dollar Business
Day, then on the next preceding Euro-Dollar Business Day. 

        "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended, or any successor statute. 

6

 

         "Investment Grade" means (i) with respect to S&P, a rating of BBB- or higher and (ii) with respect to Moody's, a rating of Baa3 or
higher. 

        "Investment" means, when used in connection with any Person, any investment by or of that Person, whether by means of purchase or other acquisition of stock or
other debt securities or equity securities of any other Person. The amount of any Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the
value of such Investment. 

         "Lead Arranger" means Banc of America Securities LLC. Following the date of this Agreement, the Lead Arranger shall have no obligations or liabilities under
the
Loan Documents. 

        "Lender" means each lender listed on the signature pages hereof and each Lender which accepts an assignment pursuant to Section 9.05, and their respective
successors. 

         "Leverage Ratio" means, as of each date of determination, the ratio of (a) Consolidated Debt on such date to (b) Consolidated EBITDA for the four
fiscal quarters ending on that date. 

         "Lien" means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset. For the
purposes of this Agreement, the Borrower or any Subsidiary of the Borrower shall be deemed to own subject to a Lien any asset which it has acquired or holds subject to the interest of a vendor or
lessor under any conditional sale agreement, capital lease or other title retention agreement relating to such asset. 

         "Loan" means a Base Rate Loan or a Euro-Dollar Loan and "Loans" means Base Rate Loans or Euro-Dollar Loans or any combination of the
foregoing. 

         "Loan Documents" means this Agreement and the Notes. 

        "London Interbank Offered Rate" means, for the Interest Period applicable to each Euro-Dollar Loan, the average (rounded upward, if necessary, to the
next higher 1/16 of 1%) of the respective rates per annum at which deposits in Dollars are offered to the Administrative Agent in the London interbank market at approximately
11:00 A.M. (London time) two Euro-Dollar Business Days before the first day of such Interest Period in an amount approximately equal to the principal amount of the
Euro-Dollar
Loan of the Administrative Agent to which such Interest Period is to apply and for a period of time equal to such Interest Period. 

        "Margin Adjustment" has the meaning set forth in the Pricing Schedule. 

         "Material Adverse Effect" means, as of each date of determination, a material adverse effect on or change in the condition (financial or otherwise), business,
assets or results of operations or prospects of the Borrower and its Subsidiaries, taken as a whole except any such effect or change resulting from
(i) changes in circumstances or conditions affecting the hotel, motel or travel industries in general or affecting any segment or region thereof in which they operate or (ii) changes in
general economic or business conditions in the United States. 

        "Material Plan" means at any time a Plan or Plans having aggregate Unfunded Liabilities in excess of $25,000,000. 

         "Moody's" means Moody's Investors Service, Inc., and its successors. 

         "Multiemployer Plan" means at any time an employee pension benefit plan within the meaning of Section 4001(a)(3) of ERISA to which any member of the
ERISA
Group is then making or accruing an obligation to make contributions or has within the preceding five plan years made contributions, including for these purposes any Person which ceased to be a member
of the ERISA Group during such five year period. 

7

 

         "New Project" means each new hotel or resort project (as opposed to any project which consists of an extension or redevelopment of an operating hotel or
resort)
having a development and construction budget in excess of $50,000,000 which hereafter receives a certificate of completion or occupancy and all relevant operational licenses, and in fact commences
operations. 

         "Non-Recourse Debt" means Debt in respect of which the recourse of the holder of such Debt is limited to the assets securing such Debt and such Debt
does not constitute the general obligation of the Borrower or any Subsidiary of the Borrower. 

         "Notes" means promissory notes of the Borrower, substantially in the form of Exhibit B hereto, evidencing the obligation of the Borrower to repay the
Loans, and "Note" means any one of such promissory notes issued hereunder. 

         "Notice of Borrowing" has the meaning set forth in Section 2.02. 

         "Notice of Conversion\Continuation" has the meaning set forth in Section 2.05. 

         "Other Facilities" means the lending commitments of the Lenders under the Five Year Credit Agreement dated as of November 30, 1999 among Borrower, the
Lenders party thereto and Bank of America, as Administrative Agent, as at any time amended. 

        "Parent" means, with respect to any Lender, any Person controlling such Lender. 

         "Park Place" means Park Place Entertainment Corporation, a Delaware corporation. 

         "PBGC" means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions under ERISA. 

        "Person" means an individual, a corporation, a partnership, a limited liability company, an association, a trust or any other entity or organization, including
a
government or political subdivision or an agency or instrumentality thereof. 

         "Plan" means at any time an employee pension benefit plan (other than a Multiemployer Plan) which is covered by Title IV of ERISA or subject to the minimum
funding standards under Section 412 of the Internal Revenue Code and either (i) is maintained, or contributed to, by any member of the ERISA Group for employees of any member of the
ERISA Group or (ii) has at any time within the preceding five years been maintained, or contributed to, by any Person which was at such time a member of the ERISA Group for employees of any
Person which was at such time a member of the ERISA Group. 

         "PPE Assumed Notes" means the 7.35% senior notes of the Borrower due 2002 in the aggregate principal amount of $300,000,000 and the 7.00% senior notes of the
Borrower due 2004 in the aggregate principal amount of $325,000,000 issued pursuant to the Indenture, dated as of April 15, 1997 executed by the Borrower in favor of BNY Western Trust Company,
as Trustee. 

        "Pre-Opening Expenses" means, with respect to any fiscal period, the amount of expenses (other than Consolidated Interest Expense) incurred with
respect to capital projects which are classified as "pre-opening expenses" on the applicable financial statements of Borrower and its Subsidiaries for such period, prepared in accordance
with generally accepted accounting principles. 

         "Pricing Certificate" means a Pricing Certificate substantially in the form of Exhibit C hereto, properly completed and signed by an Authorized Officer.

        "Prime Rate" means the rate of interest publicly announced from time to time by Bank of America as its "prime rate" or the similar prime rate or reference rate
announced by any successor Administrative Agent. Bank of America's prime rate is a rate set by Bank of America 

8

 

based upon various factors including Bank of America's costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be
priced at, above, or below such announced rate. Any change in the Prime Rate announced by Bank of America or any successor Administrative Agent shall take effect at the opening of business on the day
specified in the public announcement of such change. 

         "Project Capital Expenditure" means any cash expenditure for or related to fixed assets or purchased intangibles that is treated as a capital expenditure
under
Generally Accepted Accounting Principles, including any amount which is required to be treated as an asset subject to a Capital Lease Obligation, but  excluding any capital expenditure made to maintain,
repair, refurbish or remodel any existing capital assets of Borrower or its Subsidiaries. 

        "Public Notice" means, without limitation, any filing or report made in accordance with the requirements of the Securities and Exchange Commission (or any
successor), any press release or public announcement made by the Borrower or any written notice the Borrower gives to the Administrative-Agent or the Lenders. 

         "Rating Agencies" means S&P and Moody's. 

         "Ratings Decline" means the occurrence on any date on or within 90 days after the date of the first public notice of (i) the occurrence of an event
described in clauses (i)-(iv) of the definition of "Change of Control" or (ii) the intention by the Borrower to effect such an event (which 90-day period shall be extended so
long as the rating of the senior debt of the Borrower is under publicly announced consideration for possible downgrade by either of the Rating Agencies) of a decrease in the rating of the senior debt
of the Borrower by both of the Rating Agencies to below Investment Grade. 

         "Redemption" means, with respect to any shares of capital stock or any warrant or option to purchase an equity security or other equity security issued by the
Borrower, the retirement, redemption, purchase or other acquisition for cash or for other property (other than capital stock, or any warrants or options to purchase an equity security or other
security of such Person) by the issuer of any such security. 

         "Regulation U" means Regulation U of the Board of Governors of the Federal Reserve System, as in effect from time to time. 

         "Required Lenders" means at any time Lenders having more than 50% of the aggregate amount of the Commitments or, if the Commitments shall have been terminated,

holding more than 50% of the sum of the aggregate unpaid principal amount of the Loans. 

        "Revolving Credit Period" means the period from and including the Effective Date to but not including the Termination Date. 

         "S&P" means Standard & Poor's Ratings Group, a division of McGraw Hill, Inc., and its successors. 

         "Significant Subsidiary" means at any time a Subsidiary of the Borrower having (i) at least 10% of the consolidated total assets of the Borrower and its
Subsidiaries (determined as of the last day of the most recent fiscal quarter of the Borrower) or (ii) at least 10% of the consolidated revenues of the Borrower and its Subsidiaries for the
fiscal year of the Borrower then most recently ended. 

         "SPC" has the meaning set forth in Section 9.05(f). 

9

 

        "Subsidiary" means at any date any Person the accounts of which would be consolidated with those of the Borrower in its consolidated financial statements as of
such date in accordance with generally accepted accounting principles. 

         "Syndication Agents" means, collectively, Wachovia Bank, N.A., First Union National Bank, The Bank of New York and The Bank of Nova Scotia, in each case in
their
capacity as syndication agents for the Lenders hereunder. In their capacities as such, the Syndication Agents shall have no rights, duties or obligations, and shall incur no liabilities, under this
Agreement and the other Loan Documents which are in addition to the other Lenders. 

        "Termination Date" means November 26, 2002 or such later date to which the Termination Date shall be extended pursuant to Section 2.23, or, if such
day is not a Domestic Business Day, the next preceding Domestic Business Day. 

         "Unfunded Liabilities" means, with respect to any Plan at any time, the amount (if any) by which (i) the value of all benefit liabilities under such Plan,

determined on a plan termination basis using the assumptions prescribed by the PBGC for purposes of Section 4044 of ERISA, exceeds (ii) the fair market value of all Plan assets allocable
to such liabilities under Title IV of ERISA (excluding any accrued but unpaid contributions), all determined as of the then most recent valuation date for such Plan, but only to the extent that such
excess represents a potential liability of a member of the ERISA Group to the PBGC or any other Person under Title IV of ERISA. 

        1.02    Accounting Terms and Determinations.    Unless otherwise specified herein, all accounting terms used herein
shall be interpreted, all accounting determinations hereunder shall be made, and all financial statements required to be delivered hereunder shall be prepared, in accordance with generally accepted
accounting principles as in effect from time to time, applied on a basis consistent (except for changes concurred in by the Borrower's independent public accountants and disclosed in such financial
statements) with the most recent audited consolidated financial statements of the Borrower and its Subsidiaries delivered to the Lenders; provided that, if the Borrower notifies the Administrative
Agent that the Borrower wishes to amend any covenant in Article V to eliminate the effect of any change in generally accepted accounting principles on the operation of such covenant (or if the
Administrative Agent notifies the Borrower that the Required Lenders wish to amend Article V for such purpose), then the Borrower's compliance with such covenant shall be determined on the
basis of generally accepted accounting principles in effect immediately before the relevant change in generally accepted accounting principles became effective, until either such notice is withdrawn
or such covenant is amended in a manner satisfactory to the Borrower and the Required Lenders. 

        1.03    Types of Borrowings.    Borrowings are classified for purposes of this Agreement by reference to the pricing
of Loans comprising such Borrowing (e.g., a "Euro-Dollar Borrowing" is a Borrowing comprised of Euro-Dollar Loans). 

10

  

 
 

ARTICLE II    
    
    THE CREDITS    
  

        2.01    Commitments to Lend.    During the Revolving Credit Period each Lender severally agrees, on the terms and
conditions set forth in this Agreement, to lend to the Borrower pursuant to this Section from time to time amounts such that (a) the aggregate principal amount of Loans made by such Lender at
any one time outstanding shall not exceed the amount of its Commitment, and (b) the aggregate outstanding principal amount of all Loans shall not exceed the aggregate Commitments. Each
Borrowing under this Section shall be in an aggregate principal amount of $10,000,000 or any larger multiple of $1,000,000; and each Borrowing shall be made from the several Lenders ratably in
proportion to their respective Commitments. Within the foregoing limits, the Borrower may borrow under this Section, repay, or to the extent permitted by Section 2.16, prepay Loans and reborrow
at any time on or prior to the Termination Date under this Section. The Loans shall mature, and the principal amount thereof shall be due and payable, on the Termination Date. 

        2.02    Notice of Borrowings.    The Borrower shall give the Administrative Agent notice (a "Notice of Borrowing"),
substantially in the form of Exhibit D hereto, not later than 8:30 A.M. (California local time) on (x) the date of each Base Rate Borrowing and (y) the third
Euro-Dollar Business Day before each Euro-Dollar Borrowing, specifying: 

        (a)  the
date of such Borrowing, which shall be a Domestic Business Day in the case of a Base Rate Borrowing or a Euro-Dollar Business Day in the case of a
Euro-Dollar Borrowing; 

        (b)  the
aggregate amount of such Borrowing; 

        (c)  whether
the Loans comprising such Borrowing are to be Base Rate Loans or Euro-Dollar Loans; and 

        (d)  in
the case of a Euro-Dollar Borrowing, the duration of the Interest Period applicable thereto, subject to the provisions of the definition of Interest
Period. 

Not
more than twelve Interest Periods with respect to Euro-Dollar Loans shall be in effect at any time. 

        2.03    [Reserved].    

        2.04    [Reserved].    

        2.05    Conversion and Continuation of Loans.    So long as no Default or Event of Default has occurred and is
continuing, Borrower shall have the option at any time (i) to convert all or any part of its outstanding Base Rate Loans which are integral multiples of $1,000,000 and which are not less than
$10,000,000 into Euro-Dollar Loans or (ii) upon the expiration of any Interest Period applicable to Euro-Dollar Loans, to continue all or any portion of such Loans equal
to $1,000,000 and integral multiples of $100,000 in excess of that amount as Euro-Dollar Loans or to convert such Loans into Base Rate Loans. 

        Borrower
shall deliver to the Administrative Agent notice of any such conversion or continuation, substantially in the form of Exhibit D (each a "Notice of
Conversion/Continuation"), no later than 8:30 A.M. (California local time) at least one Domestic Business Day in advance of the proposed conversion date (in the case of a conversion to a Base
Rate Loan) and at least three Euro-Dollar Business Days in advance of the proposed conversion/continuation date (in the case of a conversion to, or a continuation of, a
Euro-Dollar Loan). A Notice of Conversion/Continuation shall specify (i) the proposed conversion/continuation date (which shall be a Domestic Business Day in the case of Base Rate
Loans and a Euro-Dollar Business Day in the case of conversion to or continuation of Euro-Dollar Loans), (ii) the amount and type of the Loan to be converted/continued,
(iii) the nature of the proposed conversion/continuation, (iv) in the case of a conversion to, or a continuation of, a Euro-Dollar Loan, the requested Interest Period, and
(v) in the case of a conversion to, or a 

11

 

continuation of, a Euro-Dollar Loan, that no Default or Event of Default has occurred and is continuing. 

        2.06    Notice to Lenders; Funding of Loans.    

        (a)  Upon
receipt of a Notice of Borrowing or a Notice of Conversion/Continuation, the Administrative Agent shall promptly notify each Lender of the contents thereof and of
such Lender's share (if any) of
such Borrowing and such Notice of Borrowing or Notice of Conversion\Continuation shall not thereafter be revocable by the Borrower. 

        (b)  Not
later than 11:00 A.M. (California local time) on the date of each Borrowing, each Lender participating therein shall (except as provided in subsection
(c) of this Section) make available its share of such Borrowing in Dollars, in federal or other funds immediately available to the Administrative Agent at its address referred to in
Section 9.01. Unless the Administrative Agent determines that any applicable condition specified in Article III has not been satisfied, the Administrative Agent will make the funds so
received from the Lenders available to the Borrower at the Administrative Agent's aforesaid address or place. 

        (c)  Unless
the Administrative Agent shall have received notice from a Lender prior to the date of any Borrowing that such Lender will not make available to the
Administrative Agent such Lender's share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available to the Administrative Agent on the date of such Borrowing
in accordance with Section 2.06(b) and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower on such date a corresponding amount. If and to the extent
that such Lender shall not have so made such share available to the Administrative Agent, such Lender and the Borrower severally agree to repay to the Administrative Agent forthwith on demand such
corresponding amount together with interest thereon, for each day from the date (and including the date) such amount is made available to the Borrower to (but excluding) the date such amount is repaid
to the Administrative Agent, at (i) in the case of the Borrower, a rate per annum equal to the higher of the Federal Funds Rate and the interest rate applicable thereto pursuant to
Section 2.08 and (ii) in the case of such Lender, the Federal Funds Rate. If such Lender shall repay to the Administrative Agent such corresponding amount, such amount so repaid shall
constitute such Lender's Loan included in such Borrowing for purposes of this Agreement. If the Borrower pays interest under this subsection (c) at the Federal Funds Rate and the Federal Funds
Rate is higher than the interest rate applicable thereto pursuant to Section 2.08, the applicable Lender shall pay the Borrower the difference between such rates. 

        2.07    Notes.    

        (a)  The
Loans of each Lender shall be evidenced by a single Note payable to the order of such Lender for the account of its Applicable Lending Office in an amount equal to
the aggregate unpaid principal amount of such Lender's Commitment. 

        (b)  [Reserved].

        (c)  Upon
receipt of each Lender's Note pursuant to Section 3.02(b), the Administrative Agent shall forward such Note to such Lender. Each Lender shall record the
date, amount, type and maturity of each Loan made by it and the date and amount of each payment of principal made by the Borrower with respect thereto, and may, if such Lender so elects in connection
with any transfer or enforcement of its Note, endorse on the schedule forming a part thereof appropriate notations to evidence the
foregoing information with respect to each such Loan then outstanding; provided that the failure of any Lender to make any such recordation or endorsement shall not affect the obligations of the
Borrower hereunder or under the Notes. Each Lender is hereby irrevocably authorized by the Borrower so to endorse its Note and to attach to and make a part of its Note a continuation of any
such schedule as and when required. 

12

 

        2.08    Interest Rates.    (a) Each Base Rate Loan shall bear interest on the outstanding principal amount
thereof, for each day from (and including) the date such Loan is made to (but excluding) the date it becomes due, at a rate per annum equal to the Base Rate for such day plus any applicable Base Rate
Margin. Any overdue principal of or interest on any Base Rate Loan shall, at the option of the Required Lenders, bear interest, payable on demand, for each day until paid at a rate per annum equal to
the Base Rate plus the Base Rate Margin plus 2%. Such interest shall be payable on the last Domestic
Business Day of each calendar quarter in arrears and on the Termination Date. 

        (b)  Each
Euro-Dollar Loan shall bear interest on the outstanding principal amount thereof, for each day during the Interest Period applicable thereto (from and
including the first day of such Interest Period to but excluding the last day of such Interest Period), at a rate per annum equal to the sum of (a) the Euro-Dollar Margin for such
day plus (b) the applicable London Interbank Offered Rate for such Interest Period. Such interest shall be payable for each Interest Period on
the last day thereof and, if such Interest Period is longer than three months, at intervals of three months after the first day thereof. 

        (c)  Any
overdue principal of or interest on any Euro-Dollar Loan shall, at the option of the Required Lenders, bear interest, payable on demand, for each day
until paid at a rate per annum equal to the sum of 2% plus the Euro-Dollar Margin for such day plus the quotient obtained (rounded upwards, if necessary, to the next higher 1/100 of 1%) by
dividing (i) the average (rounded upward, if necessary, to the next higher 1/16 of 1%) of the respective rates per annum at which one day deposits in Dollars in an amount
approximately equal to such overdue payment due to the Administrative Agent are offered to the Administrative Agent in the London interbank market for the applicable period determined as provided
above by (ii) 1.00 minus the Euro-Dollar Reserve Percentage (or, if the circumstances described in clause (a) or (b) of Section 8.01 shall exist, at a rate per
annum equal to the sum of 2% plus the rate applicable to Base Rate Loans for such day). 

        (d)  [Reserved].

        (e)  [Reserved].

        (f)    The
Administrative Agent shall determine in accordance with the provisions of this Agreement each interest rate applicable to the Loans hereunder. The Administrative
Agent shall give prompt notice to the Borrower and the participating Lenders of each rate of interest so determined, and its determination thereof shall be conclusive in the absence of manifest error. 

        2.09    Administrative Agency Fees.    On the date hereof and on the Effective Date, the Borrower shall pay to the
Administrative Agent and the Lead Arranger certain fees in the amounts set forth in a letter agreement with the Administrative Agent and the Lead Arranger. 

        2.10    Upfront Fees.    On the Effective Date, the Borrower shall pay to the Administrative Agent for the account of
each Lender non-refundable upfront fees in the amounts set forth in letter agreements between each Lender and the Lead Arranger, and in an aggregate amount not to exceed the amount set
forth in a letter agreement among the Borrower, the Administrative Agent and the Lead Arranger. 

        2.11    Facility Fees.    The Borrower shall pay to the Administrative Agent for the account of the Lenders ratably
facility fees at the Facility Fee Rate determined daily in accordance with the Pricing Schedule. Such facility fee shall accrue from and including the date hereof to but excluding the Termination Date
(or earlier date of termination of the Commitments in their entirety), on the daily aggregate amount of the Commitments (whether used or unused). Facility fees shall be payable quarterly in arrears on
the first day of each March, June, September and December and upon the date of termination of the Commitments in their entirety and, when paid, are non-refundable. 

13

 

        2.12    Mandatory Prepayments.    If as of the date of incurrence by Borrower or any of its Subsidiaries of any Debt
for borrowed money (other than any Debt incurred to refinance other outstanding Debt) which when aggregated with all other such Debt incurred following the date hereof, is in an aggregate principal
amount in excess of $250,000,000, after giving pro forma effect to such incurrence and the application of the proceeds of such Debt in computing the
Leverage Ratio as of the then most recently ended fiscal quarter of Borrower, such pro forma Leverage Ratio is greater than 5.00:1.00, then Borrower
shall immediately apply the net cash proceeds of such Debt (a) to prepay the loans outstanding under the Other Facilities, and to concurrently and permanently reduce the lending commitments
under the Other Facilities, and (b) to the extent that the outstanding Loans under the Other Facilities have been repaid in full, to prepay the outstanding Loans, in each to the extent required
to reduce the pro forma Leverage Ratio to a ratio not greater than 5.00:1.00. To the extent that the Loans hereunder are so repaid, the Commitments
shall concurrently be automatically and permanently reduced by the amount of such prepayment. 

        2.13    Optional Termination or Reduction of Commitments by Borrower.    During the Revolving Credit Period, the
Borrower may, upon at least three Domestic Business Days' notice to the Administrative Agent, (i) terminate the Commitments at any time, if no Loans are outstanding at such time or
(ii) ratably and permanently reduce from time to time by an aggregate amount of $25,000,000 or any larger amount in
multiples of $1,000,000, the aggregate amount of the Commitments in excess of the sum of the aggregate outstanding principal balance of the Loans. 

        2.14    Optional Termination of Commitments by the Lenders.    Following the occurrence of a Change of Control, the
Required Lenders may in their sole and absolute discretion elect, during the sixty day period immediately subsequent to the later of (a) such
occurrence and (b) the earlier of (i) receipt of the Borrower's written notice to the Administrative Agent of such occurrence and
(ii) if no such notice has been received by the Administrative Agent, the date upon which the Administrative Agent and the Lenders have actual knowledge thereof, to terminate all of the
Commitments. In any such case the Commitments shall be terminated effective on the date which is sixty days subsequent to the date of written notice from the Administrative Agent to the Borrower
thereof, and to the extent that there is then any Debt evidenced by the Notes, the same shall be immediately due and payable. 

        2.15    Scheduled Termination of Commitments.    The Commitments shall terminate on the Termination Date and any Loans
then outstanding (together with accrued interest thereon) shall be due and payable on such date. 

        2.16    Optional Prepayments.    

        (a)  Subject
in the case of any Euro-Dollar Borrowing to Section 2.18, the Borrower may, upon at least one Domestic Business Day's notice to the
Administrative Agent, prepay any Base Rate Borrowing or upon at least three Euro-Dollar Business Days' notice to the Administrative Agent, with respect to any Euro-Dollar
Borrowing, prepay any Euro-Dollar Borrowing, in each case in whole at any time, or from time to time in part in amounts aggregating $10,000,000 or any larger multiple of $1,000,000, by
paying the principal amount to be prepaid together with accrued interest thereon to the date of prepayment. Each such optional prepayment shall be applied to prepay ratably the Loans of the several
Lenders included in such Borrowing. 

        (b)  [Reserved].

        (c)  Upon
receipt of a notice of prepayment pursuant to this Section, the Administrative Agent shall promptly notify each Lender of the contents thereof and of such Lender's
ratable share (if any) of such prepayment and such notice shall not thereafter be revocable by the Borrower. 

14

 

        2.17    General Provisions as to Payments.    

        (a)  The
Borrower shall make each payment of principal of, and interest on, Loans and of fees hereunder, in Dollars not later than 11:00 A.M. (California local time)
on the date when due, in federal or other immediately available funds, to the Administrative Agent at its address referred to in Section 9.01, without offset or counterclaim. The Administrative
Agent will promptly distribute to each Lender its ratable share of each such payment received by the Administrative Agent for the account of the Lenders, in Dollars and in the type of funds received
by the Administrative Agent. Whenever any payment of principal of, or interest on, the Base Rate Loans or of fees shall be due on a day which is not a Domestic Business Day, the date for payment
thereof shall be extended to the next succeeding Domestic Business Day. Whenever any payment of principal of, or interest on, the Euro-Dollar Loans or shall be due on a day which is not a
Euro-Dollar Business Day, the date for payment thereof shall be extended to the next succeeding Euro-Dollar Business Day unless such Euro-Dollar Business Day falls
in another calendar month, in which case the date for payment thereof shall be the next preceding Euro-Dollar Business Day. If the date for any payment of principal is extended by
operation of law or otherwise, interest thereon shall be payable for such extended time. 

        (b)  Unless
the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Lenders hereunder that the Borrower
will not make such payment in full, the Administrative Agent may assume that the Borrower has made such payment in full to the Administrative Agent on such date and the Administrative Agent may, in
reliance upon such assumption, cause to be distributed to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent that the Borrower shall not have so made
such payment, each Lender shall repay to the Administrative Agent forthwith on demand such amount distributed to such Lender together with interest thereon, for each day from the date such amount is
distributed to such Lender until the date such Lender repays such amount to the Administrative Agent, at the Federal Funds Rate. 

        2.18    Funding Losses.    If the Borrower makes any payment of principal with respect to any Euro-Dollar
Loan (pursuant to Article VI or VIII or otherwise) on any day other than the last day of the Interest Period applicable thereto, or if the Borrower fails to borrow any Euro-Dollar
Loans after notice has been given to any Lender in accordance with Section 2.06(a), the Borrower shall reimburse each Lender within 15 days after demand for any resulting loss or expense
incurred by it, including (without limitation) any loss incurred in obtaining, liquidating or employing deposits from third parties, but excluding loss of margin for the period after any such payment
or failure to borrow, provided that such Lender shall have delivered to the Borrower a certificate as to the amount of such loss or expense, which certificate shall be conclusive in the absence of
manifest error. 

        2.19    Computation of Interest and Fees.    Interest based on the Prime Rate and all fees hereunder shall be computed
on the basis of a year of 365 days (or 366 days in a leap year) and paid for the actual number of days elapsed (including the first day but excluding the last day). All other interest
shall be computed on the basis of a year of 360 days and paid for the actual number of days elapsed (including the first day but excluding the last day). 

        2.20    Withholding Tax Exemption.    At least five Domestic Business Days prior to the first date on which interest
or fees are payable hereunder for the account of any Lender, each Lender that is not incorporated under the laws of the United States of America or a state thereof agrees that it will deliver to each
of the Borrower and the Administrative Agent two duly completed copies of United States Internal Revenue Service Form W-8 ECI or W8-BEN, certifying in either case that
such Lender is entitled to receive payments under the Loan Documents without deduction or withholding of any United States federal income taxes. 

15

 

        Each
Lender which so delivers a Form W8-ECI or W8-BEN further undertakes to deliver to each of the Borrower and the Administrative Agent two additional copies of
such forms on or before the date that such form expires or becomes obsolete or after the occurrence of any event requiring a change in the most recent form so delivered by it, and such amendments
thereto or extensions or renewals thereof as may be reasonably requested by the Borrower or the Administrative Agent, in each case certifying that such Lender is entitled to receive payments under
this Agreement and the Notes without deduction or withholding of any United States federal income taxes, unless an event (including without limitation any change in treaty, law or regulation) has
occurred prior to the date on which any such delivery would otherwise be required which renders all such forms inapplicable or which would prevent such Lender from duly completing and delivering any
such form with respect to it and such Lender advises the Borrower and the Administrative Agent that it is not capable of receiving payments without any deduction or withholding of United States
federal income tax. 

        2.21    [Reserved].    

        2.22    Regulation D Compensation.    Each Lender may require the Borrower to pay, contemporaneously with each
payment of interest on the Euro-Dollar Loans, additional interest on the related Euro-Dollar Loan of such Lender at a rate per annum determined by such Lender up to but not
exceeding the excess of (i) (A) the applicable London Interbank Offered Rate divided by (B) one minus the Euro-Dollar Reserve Percentage over (ii) the applicable
London Interbank Offered Rate. Any Lender wishing to require payment of such additional interest (x) shall so notify the Borrower and the Administrative Agent, in which case such additional
interest on the Euro-Dollar Loans of such Lender shall be payable to such Lender at the place indicated in such notice with respect to each Interest Period commencing at least three
Euro-Dollar Business Days after the giving of such notice and (y) shall notify the Borrower at least five Euro-Dollar Business Days prior to each date on which interest
is payable on the Euro-Dollar Loans of the amount then due it under this Section. 

        2.23    Extension of the Termination Date.    The Termination Date may be extended, in the manner set forth in this
Section, for a period of 364 days after the date on which the Termination Date would otherwise have occurred. If the Borrower wishes to extend the Termination Date, it shall give written notice
to that effect to the Administrative Agent not less than 90 days nor more than 150 days following the delivery to the Administrative Agent of the audited annual financial statements of
Borrower in accordance with Section 5.01(a), whereupon the Administrative Agent shall notify each of the Lenders of such notice. Each Lender will respond to such request, whether affirmatively
or negatively, within
the period ending on the later of 30 days following the submission of the Borrower's request to the Lenders or 40 days prior to the then scheduled Termination Date (the "Response Date").
If a Lender or Lenders respond negatively or fail to timely respond to such request, but such non-extending Lender(s) have Commitment(s) aggregating less than 331/3% of the
aggregate amount of the Commitments, the Borrower shall, for a period of up to 60 days following the Response Date (but in any event not later than 15 days prior to the then effective
Termination Date), have the right, with the assistance of the Administrative Agent, to seek a mutually satisfactory substitute financial institution or financial institutions (which may be one or more
of the Lenders) to assume the Commitment(s) of such non-extending Lender(s). No Lender which fails to consent shall be deemed to have consented to a request by the Borrower under this
Section. Not later than the third Domestic Business Day prior to the end of such period (whether of 60 days or shorter), the Borrower shall, by notice to the Lenders through the Administrative
Agent, either (i) terminate, effective on the third Domestic Business Day after the giving of such notice, the Commitment(s) of such non-extending Lender(s), whereupon the Lenders
who have consented to the extension shall continue with their commitments unaffected to lend subject to the terms of this Agreement to the new Termination Date, or (ii) designate one or more
new financial institutions reasonably acceptable to the Administrative Agent to assume the Commitments of such non-extending Lenders, whereupon the aggregate amount of such Commitment(s)
shall be assumed by such substitute financial institution or financial institutions within such 60-day period or 

16

 

(iii) withdraw its request for an extension of the Termination Date, in which case the Commitments shall continue unaffected. The failure of the Borrower to timely take the actions
contemplated by clause (i) or (ii) of the preceding sentence shall be deemed a withdrawal of its request for an extension as contemplated by clause (ii) whether or not notice to
such effect is given. So long as Lenders having Commitment(s) totaling not less than 662/3% of the aggregate amount of the Commitment(s) shall have responded affirmatively to such a
request, and such request is not withdrawn in accordance with the preceding sentence, then, subject to receipt by the Administrative Agent of counterparts of an Extension Agreement in substantially
the form of Exhibit G duly completed and signed by all of the parties hereto (other than non-consenting Lenders), the Termination Date shall be extended for the period set forth in
this Section 2.23 and in the Extension Agreement. 

        2.24    Increased Commitments; Additional Lenders.    

        (a)  Following
the Effective Date, the Borrower may from time to time, propose to increase the aggregate amount of the Commitments in accordance with this Section. The
aggregate principal amount of the increases to the Commitments made pursuant to this Section (the amount of any such increase, the "Increased Commitments"), when aggregated with the principal amount
of any increases to the Other Facilities made pursuant to Section 2.24 thereof, shall not exceed $500,000,000. Borrower shall provide at least 30 days' notice to the Administrative Agent
(which shall promptly provide a copy of such notice to the Lenders) of any requested Increased Commitments. Each Lender party to this Agreement at such time shall have the right (but not the
obligation), for a period of 15 days following receipt of such notice, to elect by notice to the Borrower and the Administrative Agent to increase its Commitment by a principal amount which
bears the same ratio to the Increased Commitments as its then Commitment bears to the aggregate Commitments then existing. No Lender which fails to respond shall be deemed to have elected to increase
its Commitment in response to a notice by the Borrower under this Section. 

        (b)  If
any Lender party to this Agreement elects not to increase its Commitment pursuant to subsection (a) of this Section, the Borrower may designate another lender
which qualifies as an Eligible Assignee (which may be, but need not be, one or more of the existing Lenders) which at the time agrees to (i) in the case of any such designated Lender that is an
existing Lender, increase its Commitment and (ii) in the case of any other such lender (an "Additional Lender"), become a party to this Agreement. The sum of the increases in the Commitments of
the existing Lenders pursuant to this subsection (b) plus the Commitments of the Additional Lenders shall not in the aggregate exceed the unsubscribed amount of the Increased Commitments. 

        (c)  An
increase in the aggregate amount of the Commitments pursuant to this Section 2.24 shall become effective upon the receipt by the Administrative Agent of an
agreement in form and substance satisfactory to the Administrative Agent signed by the Borrower, by each Additional Lender and by each other Lender whose Commitment is to be increased, setting forth
the new Commitments of such Lenders and setting forth the agreement of each Additional Lender to become a party to this Agreement and to be bound by all the terms and provisions hereof, together with
such evidence of appropriate corporate authorization on the part of the Borrower with respect to the Increased Commitments and such opinions of counsel for the Borrower with respect to the Increased
Commitments as the Administrative Agent may reasonably request. 

 
 

ARTICLE III    
    
    CONDITIONS    
  

        3.01    Borrowings.    The obligation of any Lender to make a Loan on the occasion of any Borrowing is subject to the
satisfaction of the following conditions: 

        (a)  receipt
by the Administrative Agent of a Notice of Borrowing as required by Section 2.02; 

17

 

        (b)  immediately
after such Borrowing the sum of the aggregate outstanding principal amount of the Loans and will not exceed the aggregate amount of the Commitments; 

        (c)  immediately
before and after such Borrowing no Default or Event of Default shall have occurred and be continuing; and 

        (d)  the
representations and warranties of the Borrower contained in this Agreement (except the representations and warranties set forth in Section 4.04(c) and
Section 4.05, in each case as to any matter which has theretofore been disclosed in writing by the Borrower to the Lenders) shall be true on and as of the date of such Borrowing. 

Each
Borrowing hereunder shall be deemed to be a representation and warranty by the Borrower on the date of such Borrowing as to the facts specified in clauses (c) and (d) of this
Section. 

        3.02    Effective Date.    As conditions precedent to the Effective Date and the making of the initial Loans
hereunder, each of the following conditions shall have been satisfied (or waived in accordance with Section 9.04) not sooner than November 27, 2001: 

        (a)  receipt
by the Administrative Agent of counterparts hereof signed by each of the parties hereto (or, in the case of any party as to which an executed counterpart shall
not have been received, receipt by the Administrative Agent in form satisfactory to it of telegraphic, telex or other written confirmation from such party of execution of a counterpart hereof by such
party); and 

        (b)  receipt
by the Administrative Agent for the account of each Lender of a duly executed Note dated as of the Effective Date; 

        (c)  receipt
by the Administrative Agent of an opinion of Gibson, Dunn & Crutcher, LLP substantially in the form of Exhibit E hereto; 

        (d)  arrangements
satisfactory to the Administrative Agent for the repayment of all loans (if any) outstanding under the Existing Short Term Facility and all related interest
and fees accrued thereunder shall have been made; 

        (e)  receipt
by the Administrative Agent of all documents it may reasonably request relating to the existence of the Borrower, the corporate authority for and the validity of
the Loan Documents, and any other matters relevant hereto, all in form and substance satisfactory to the Administrative Agent; 

        (f)    there
shall not have occurred a Material Adverse Effect since December 31, 2000, which has not been disclosed by Borrower in writing to the Lenders; 

        (g)  receipt
by the Administrative Agent and the Lead Arranger of the fees required to be paid on the Effective Date by the letter agreement referred to in Sections 2.09,
2.10 and 7.09. 

        The
Administrative Agent shall promptly notify the Borrower and each Lender of the effectiveness of this Agreement, and such notice shall be conclusive and binding on all parties hereto.
Concurrently with the effectiveness hereof, the Existing Short Term Credit Facility shall be deemed terminated, and the lenders thereunder released from their lending commitments thereunder. 

18

 
 
 

ARTICLE IV    
    
    REPRESENTATIONS AND WARRANTIES    
  

        The Borrower represents and warrants that: 

        4.01    Corporate Existence and Power.    The Borrower is a corporation duly incorporated, validly existing and in
good standing under the laws of Delaware, and has all corporate powers and all material governmental licenses, authorizations, consents and approvals required to carry on its business as now
conducted. 

        4.02    Corporate and Governmental Authorization; Contravention.    The execution, delivery and performance by the
Borrower of the Loan Documents are within the Borrower's corporate powers, have been duly authorized by all necessary corporate action, require no action by or in respect of, or filing with, any
governmental body, agency or official and do not contravene, or constitute a default under, any provision of applicable law or regulation or of the certificate of incorporation or by-laws
of the Borrower or of any agreement, judgment, injunction, order, decree or other instrument binding upon the Borrower (in the case of any such default under the provisions of any agreement or
instrument binding upon the Borrower, except to the extent that the same could not reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect), or result in the
creation or imposition of any Lien on any asset of the Borrower or any of its Subsidiaries. 

        4.03    Binding Effect.    This Agreement constitutes a valid and binding agreement of the Borrower and the Notes,
when executed and delivered in accordance with this Agreement, will constitute valid and binding obligations of the Borrower, in each case enforceable in accordance with their respective terms. 

        4.04    Financial Information.    

        (a)  The
consolidated balance sheet of the Borrower and its Subsidiaries as of December 31, 2000 and the related consolidated statements of income and cash flows for
the fiscal year then ended set forth in the Borrower's 2000 Form 10-K, a copy of which has been delivered to each of the Lenders, fairly present in all material respects, in
conformity with generally accepted accounting principles, the consolidated financial position of the Borrower and its Subsidiaries as of such date and their consolidated results of operations and cash
flows for such fiscal year. 

        (b)  The
unaudited consolidated balance sheet of the Borrower and its Subsidiaries as of June 30, 2001 and the related unaudited consolidated statements of income and
cash flows for the six months then ended, set forth in the Borrower's latest Form 10-Q, a copy of which has been delivered to each of the Lenders, fairly present, in conformity with
generally accepted accounting principles applied on a basis consistent with the financial statements referred to in subsection (a) of this Section, the consolidated financial position of the
Borrower and its Subsidiaries as of such date and their consolidated results of operations and cash flows for such six month period (subject to normal quarter-end adjustments). 

        (c)  Since
December 31, 2000, there has been no Material Adverse Effect, which has not been disclosed by Borrower in writing to the Lenders. 

        4.05    Litigation.    Except as disclosed in the Borrower's latest Form 10-Q, there is no action,
suit or proceeding pending against, or to the knowledge of the Borrower threatened against or affecting, the Borrower or any of its Subsidiaries before any court or arbitrator or any governmental
body, agency or official in which there is a reasonable possibility of an adverse decision which could reasonably be expected to have a Material Adverse Effect or which in any manner draws into
question the validity or enforceability of any of the Loan Documents. Without limiting the generality of the foregoing, with respect to those litigation matters described in the Borrower's latest
Form 10-Q, the disclosure contained in the Borrower's latest Form 10-Q was accurate as of the date of the Borrower's latest 

19

 

Form 10-Q and since such date there has been no adverse development which would reasonably be expected to have a Material Adverse Effect. 

        4.06    Compliance with ERISA.    Each member of the ERISA Group has fulfilled its obligations under the minimum
funding standards of ERISA and the Internal Revenue Code with respect to each Plan and is in compliance in all material respects with the presently applicable provisions of ERISA and the Internal
Revenue Code with respect to each Plan. No member of the ERISA Group has (i) sought a waiver of the minimum funding standard under Section 412 of the Internal Revenue Code in respect of
any Plan, (ii) failed to make any contribution or payment to any Plan or Multiemployer Plan or in respect of any Benefit Arrangement, or made any amendment to any Plan or Benefit Arrangement,
which has resulted or could result in the imposition of a Lien or the posting of a bond or other security
under ERISA or the Internal Revenue Code or (iii) incurred any liability under Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA. 

        4.07    Taxes.    The United States federal income tax returns of the Borrower and its Subsidiaries have been filed
through the fiscal year ended December 31, 2000. The Borrower and its Significant Subsidiaries have filed all United States federal income tax returns and all other material tax returns which
are required to be filed by them and have paid all taxes due pursuant to such returns or pursuant to any assessment received by the Borrower or any Subsidiary of the Borrower. The charges, accruals
and reserves on the books of the Borrower and its Significant Subsidiaries in respect of taxes or other governmental charges are, in the opinion of the Borrower, adequate. 

        4.08    Significant Subsidiaries.    Each of the Significant Subsidiaries is a corporation duly incorporated, validly
existing and in good standing under the laws of its jurisdiction of incorporation, and has all corporate powers and all material governmental licenses, authorizations, consents and approvals required
to carry on its business as now conducted. 

        4.09    Not an Investment Company.    The Borrower is not an "investment company" within the meaning of the Investment
Company Act of 1940, as amended. 

        4.10    Environmental Matters.    The Borrower has reasonably concluded that Environmental Laws are unlikely to have a
material adverse effect on the business, financial position, results of operations or prospects of the Borrower and its Subsidiaries, considered as a whole. 

        4.11    Full Disclosure.    All information heretofore furnished by the Borrower to the Administrative Agent or to any
Lender for purposes of or in connection with this Agreement or any transaction contemplated hereby is, and all such information hereafter furnished by the Borrower to the Administrative Agent or any
Lender, taken as a whole, will be true and accurate in all material respects on the date as of which such information is stated or certified. The Borrower has disclosed to the Lenders in writing any
and all facts which materially and adversely affect or may affect (to the extent the Borrower can now reasonably foresee), the business, operations or financial position of the Borrower and its
Subsidiaries, taken as a whole, or the ability of the Borrower to perform its obligations under this Agreement. With respect to any projections or forecasts provided, such projections or forecasts
represent, as of the date thereof, management's best estimates based on reasonable assumptions and all available information, but are subject to the uncertainty inherent in all projections and
forecasts. 

20

  

 
 

ARTICLE V    
    
    COVENANTS    
  

        The Borrower agrees that, so long as any Lender has any Commitment hereunder or any amount payable under any Note remains unpaid: 

        5.01    Information.    The Borrower will deliver to the Administrative Agent: 

        (a)  as
soon as available and in any event within 90 days after the end of each fiscal year of the Borrower, the consolidated balance sheet of the Borrower and its
Subsidiaries as of the end of such fiscal year and the related consolidated statements of income and cash flows for such fiscal year, setting forth in each case in comparative form the figures as of
the end of and for the previous fiscal year, all reported on in a manner acceptable to the Securities and Exchange Commission by Arthur Andersen LLP or other independent public accountants of
nationally recognized standing; 

        (b)  as
soon as available and in any event within 60 days after the end of each of the first three quarters of each fiscal year of the Borrower, the consolidated
balance sheet of the Borrower and its Subsidiaries as of the end of such quarter and the related consolidated statements of income and cash flows for such quarter and for the portion of the Borrower's
fiscal year ended at the end of such quarter, setting forth in the case of such statements of income and cash flows in comparative form the figures for the corresponding quarter and the corresponding
portion of the Borrower's previous fiscal year, all certified (subject to normal year-end adjustments) as to fairness of presentation, generally accepted accounting principles and
consistency by an Authorized Officer; 

        (c)  simultaneously
with the delivery of each set of financial statements referred to in clauses (a) and (b) above, a Compliance Certificate (i) setting
forth in reasonable detail the calculations required to establish whether the Borrower was in compliance with the requirements of Section 5.06, Section 5.09, Section 5.10 and, if
applicable, Section 5.11, on the date of such financial statements, and (ii) stating whether any Default exists on the date of such Compliance Certificate and, if any Default then
exists, setting forth the details thereof and the action which the Borrower is taking or proposes to take with respect thereto; 

        (d)  simultaneously
with the delivery of each set of financial statements referred to in clause (a) above, a statement of the firm of independent public accountants
which reported on such statements (i) whether anything has come to their attention to cause them to believe that any Default existed on the date of such statements and (ii) confirming
the calculations set forth in the officer's certificate delivered simultaneously therewith; 

        (e)  as
soon as available and in any event not later than the last day of February of each year, a completed Pricing Certificate as of December 31 of the prior year; 

        (f)    within
five Domestic Business Days of any officer of the Borrower obtaining knowledge of any Default, if such Default is then continuing, a certificate of an Authorized
Officer setting forth the details thereof and the action which the Borrower is taking or proposes to take with respect thereto; 

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

        (h)  promptly
upon the filing thereof, copies of all registration statements (other than the exhibits thereto and any registration statements on Form S-8
or its equivalent) and reports on Forms 10-K, 10-Q and 8-K (or their equivalents) which the Borrower shall have filed with the Securities and Exchange Commission; 

21

 

        (i)    if
and when any member of the ERISA Group (i) gives or is required to give notice to the PBGC of any "reportable event" (as defined in Section 4043 of
ERISA) with respect to any Plan which might constitute grounds for a termination of such Plan under Title IV of ERISA, or knows that the plan administrator of any Plan has given or is required to give
notice of any such reportable event, a copy of the notice of such reportable event given or required to be given to the PBGC; (ii) receives notice of complete or partial withdrawal liability
under Title IV of ERISA or notice that any Multiemployer Plan is in reorganization, is insolvent or has been terminated, a copy of such notice; (iii) receives notice from the PBGC under Title
IV of ERISA of an intent to terminate, impose liability (other than for premiums under Section 4007 of ERISA) in respect of, or appoint a trustee to administer, any Plan, a copy of such notice;
(iv) applies for a waiver of the minimum funding standard under Section 412 of the Internal Revenue Code, a copy of such application; (v) gives notice of intent to terminate any
Plan under Section 4041(c) of ERISA, a copy of such notice and other information filed with the PBGC; (vi) gives notice of withdrawal from any Plan pursuant to Section 4063 of
ERISA, a copy of such notice; or (vii) fails to make any payment or contribution to any Plan or Multiemployer Plan or in respect of any Benefit Arrangement or makes any amendment to any Plan or
Benefit Arrangement which has resulted or could result in the imposition of a Lien or the posting of a bond or other security, a certificate of the chief financial officer or the chief accounting
officer of the Borrower setting forth
details as to such occurrence and action, if any, which the Borrower or applicable member of the ERISA Group is required or proposes to take; 

        (j)    forthwith,
notice of any change of which the Borrower becomes aware in the rating by S&P or Moody's, of the Borrower's outstanding senior unsecured long-term
debt securities; and 

        (k)  from
time to time such additional information regarding the financial position or business of the Borrower as the Administrative Agent, at the request of any Lender, may
reasonably request. 

        5.02    Maintenance of Property; Insurance.    

        (a)  The
Borrower will keep, and will cause each Significant Subsidiary to keep, all property useful and necessary in its business in good working order and condition,
ordinary wear and tear excepted, except where failure to do so would not have a material adverse effect on the business, financial position, results of operations or prospects of the Borrower and its
Subsidiaries, considered as a whole. 

        (b)  The
Borrower will, and will cause each of its Significant Subsidiaries to, maintain (either in the name of the Borrower or in such Subsidiary's own name) with
financially sound and responsible insurance companies, insurance on all their respective properties in at least such amounts and against at least such risks (and with such risk retention) as are
usually insured against in the same general area by companies of established repute engaged in the same or a similar business and will furnish to the Lenders, upon request from the Administrative
Agent, information presented in reasonable detail as to the insurance so carried. Notwithstanding the foregoing, the Borrower may self-insure with respect to such risks with respect to
which companies of established repute engaged in the same or similar business in the same general area usually self-insure. 

        5.03    Conduct of Business and Maintenance of Existence.    The Borrower will continue, and will cause each
Significant Subsidiary to continue, to engage in business of the same general type as now conducted by the Borrower and its Significant Subsidiaries, and will preserve, renew and keep in full force
and effect, and will cause each Subsidiary of the Borrower to preserve, renew and keep in full force and effect their respective corporate existence and their respective rights, privileges and
franchises necessary or desirable in the normal conduct of business; provided that nothing in this Section 5.03 shall prohibit (i) the merger of a Subsidiary of the Borrower into the
Borrower or the merger or the consolidation of a Subsidiary of the Borrower with or into another Person if the corporation surviving 

22

 

such consolidation or merger is a Subsidiary of the Borrower and if, in each case, after giving effect thereto, no Default shall have occurred and be continuing or (ii) the termination of the
corporate existence of any Subsidiary of the Borrower if the Borrower in good faith determines that such termination is in the best interest of the Borrower and is not materially disadvantageous to
the Lenders. 

        5.04    Compliance with Laws.    The Borrower will comply, and cause each Significant Subsidiary to comply, in all
material respects with all applicable laws, ordinances, rules, regulations, and requirements of governmental authorities (including, without limitation, Environmental Laws and ERISA and the rules and
regulations thereunder), and shall timely file all material tax returns and pay all material taxes required to be filed by them and so paid, except in each case where the necessity of compliance
therewith is contested in good faith by appropriate proceedings. 

        5.05    Inspection of Property, Books and Records.    The Borrower will keep, and will cause each Significant
Subsidiary to keep, proper books of record and account in which full, true and correct entries shall be made of all dealings and transactions in relation to its business and activities; and will
permit, and will cause each Significant Subsidiary to permit, representatives of any Lender at such Lender's expense to visit and inspect any of their respective properties, to examine and make
abstracts from any of their respective books and records and to discuss their respective affairs, finances and accounts with their respective officers, employees and independent public accountants,
all at such reasonable times and as often as may reasonably be desired. 

        5.06    Negative Pledge.    None of the Borrower, any Covered Subsidiary or any Significant Subsidiary will create,
assume or suffer to exist any Lien on any asset now owned or hereafter acquired by it, except: 

        (a)  Liens
existing as of September 30, 2001; 

        (b)  any
Lien existing on any asset of any Person at the time such Person becomes a Subsidiary of the Borrower or at the time such Person is merged or consolidated with or
into the Borrower or a Subsidiary of the Borrower, in each case where the Lien is not created in contemplation of such event; 

        (c)  any
Lien on any asset securing Debt incurred or assumed for the purpose of financing all or any part of the cost of acquiring or constructing such asset (it being
understood that, for this purpose, the acquisition of a Person is also an acquisition of the assets of such Person); provided that the Lien attaches to such asset concurrently with or within
180 days after the acquisition thereof, or such longer period, not to exceed 12 months, due to the Borrower's inability to retain the requisite governmental approvals with respect to
such acquisition; provided further that, in the case of real estate, (i) the Lien attaches within 12 months after the latest of the acquisition thereof, the completion of construction
thereon or the commencement of full operation thereof and (ii) the Debt so secured does not exceed the sum of (x) the purchase price of such real estate plus (y) the costs of such
construction; 

        (d)  any
Lien existing on any asset prior to the acquisition thereof by the Borrower or a Subsidiary of the Borrower and not created in contemplation of such acquisition; 

        (e)  any
Lien arising out of the refinancing, extension, renewal or refunding of any Debt secured by any Lien permitted by any of the foregoing clauses of this Section,
provided that such Debt is not increased (other than to cover any transaction costs of such refinancing, extension, renewal or refunding) and is not secured by any additional assets; 

        (f)    Liens
arising in the ordinary course of its business which (i) do not secure Debt, (ii) do not secure any single obligation in an amount exceeding
$50,000,000 and (iii) do not in the 

23

 

aggregate materially detract from the value of its assets or materially impair the use thereof in the operation of its business; 

        (g)  Liens
securing Debt of a Subsidiary of the Borrower to the Borrower or another Subsidiary of the Borrower; and 

        (h)  Liens
not otherwise permitted by the foregoing clauses of this Section which secure indebtedness in an aggregate principal amount which is not in excess of 10% of
Consolidated Net Tangible Assets (determined as of the date of the incurrence of such Liens by reference to the then most recent date for which Borrower has delivered its financial statements under
Section 5.01(a) or Section 5.01(b), as applicable), and encumbering assets which have a value, as determined by the board of directors of the Borrower in connection with the incurrence
of each such Lien, which the board of directors of Borrower determines is reasonably related to the amount of the indebtedness secured thereby. 

        5.07    Consolidations, Mergers and Sales of Assets.    The Borrower will not (i) consolidate or merge with or
into any other Person or (ii) sell, lease or otherwise transfer all or any substantial part of the assets of the Borrower and its Subsidiaries, taken as a whole, to any other Person;  provided that,
the Borrower may merge with another Person if (A) the Borrower is the corporation surviving such merger and (B) immediately
after giving effect to such merger, no Default shall have occurred and be continuing. 

        5.08    Use of Proceeds.    The proceeds of the Loans made under this Agreement will be used by the Borrower and its
Subsidiaries for general corporate purposes, including but not limited to working capital, capital expenditures, the back stop of commercial paper and the acquisition of full-service hotel
and resort properties. None of such proceeds will be used, directly or indirectly, for the purpose, whether immediate, incidental or ultimate, of buying or carrying any "margin stock" within the
meaning of Regulation U in any manner that would violate Regulation X or result in a violation of Regulation U. 

        5.09    Leverage Ratio.    The Leverage Ratio will not, as of the last day of any fiscal quarter of Borrower described
in the matrix below, exceed the ratio set forth opposite that fiscal quarter: 

	Fiscal Quarters Ending
 
	 	Maximum Ratio

	September 30, 2001	 	4.75:1.00
	

December 31, 2001	
 	

5.50:1.00
	

March 31, 2002	
 	

6.00:1.00
	

June 30, 2002 and September 30, 2002	
 	

6:25:1.00
	

December 31, 2002	
 	

5.50:1.00
	

March 31, 2003	
 	

5.25:1.00
	

June 30, 2003	
 	

4.75:1.00
	

September 30, 2003 and thereafter	
 	

4.50:1.00.

24

 

        5.10    Interest Coverage Ratio.    The Interest Coverage Ratio shall not, as of the last day of any fiscal quarter of
Borrower, be less than the ratio set forth opposite that quarter in the matrix set forth below: 

	Fiscal Quarters Ending
 
	 	Minimum Ratio

	September 30, 2001 and December 31, 2001	 	2.50:1.00
	

March 31, 2002	
 	

2.40:1.00
	

June 30, 2002 and September 30, 2002	
 	

2.25:1.00
	

December 31, 2002 and thereafter	
 	

2.50:1.00.

        5.11    Certain Covenants Contingent Upon Leverage Ratio.    If, as of the last day of any fiscal quarter of Borrower
(a "Test Date"), the Leverage Ratio exceeds (a) 5.00:1.00 as of any Test Date occurring on or before March 31, 2002, or (b) 4.75:1.00 as of any Test Date occurring after
March 31, 2002 then, from and after such Test Date and until the Leverage Ratio is reduced as of any subsequent Test Date to the applicable ratio described above in this Section, Borrower shall
not, and shall not permit its Subsidiaries to: 

        (a)  Make
or declare any Distribution which would result in the aggregate amount of the Distributions made during the twelve month period ending on the record date for such
Distribution being in excess of $35,000,000 minus the aggregate amount of Project Capital Expenditures made pursuant to Section 5.11(b)(y); 

        (b)  Make
any Project Capital Expenditure following the Test Date which would result in the aggregate Project Capital Expenditures made during the period between the Test
Date and December 31, 2002 (the "Test Period") being in excess, or commit following the Test Date to make any Project Capital Expenditure during the Test Period which, if made, would result in
the aggregate Project Capital Expenditures made during the Test Period being in excess of, the sum of (x) $125,000,000 plus (y) the
difference between (i)$35,000,000 and (ii) the aggregate amount of Distributions made pursuant to Section 5.11(a); 

        (c)  Make
any Redemption or prepay, repurchase, redeem, retire or acquire, prior to the date when due, any Debt for borrowed money, other
than (x) repayments of revolving credit facilities and (y) refinancings of outstanding Debt for borrowed money using the proceeds of Debt (other than revolving
loans); or 

        (d)  Make
any Investment in the equity securities or debt securities of any person or entity which is not a Subsidiary of Borrower which are, when aggregated with all other
such Investments made following the Test Date, in excess of $25,000,000." 

 
 

ARTICLE VI    
    
    DEFAULTS    
  

        6.01    Events of Default.    If one or more of the following events ("Events of Default") shall have occurred and be
continuing: 

        (a)  the
Borrower shall fail to (i) pay when due any principal of any Loan under this Agreement or (ii) pay within five days of the due date thereof any
interest, fees or other amount payable hereunder; 

        (b)  the
Borrower shall fail to observe or perform any covenant contained in Sections 5.06 to 5.11, inclusive or; 

25

 

        (c)  the
Borrower shall fail to observe or perform any covenant or agreement contained in this Agreement (other than those covered by clause (a) or (b) above)
for 7 days after written notice thereof has been given to the Borrower by the Administrative Agent at the request of any Lender; 

        (d)  any
representation, warranty, certification or statement made or deemed made by the Borrower in this Agreement or in any certificate, financial statement or other
document delivered pursuant to this Agreement shall prove to have been incorrect in any material respect when made (or deemed made); 

        (e)  the
Borrower or any Covered Subsidiary or any Significant Subsidiary shall fail to make any payment in respect of any Debt (other than the Notes and
Non-Recourse Debt) when due or within any applicable grace period and the aggregate principal amount of such Debt is in excess of $100,000,000; 

        (f)    any
event or condition shall occur which results in the acceleration of the maturity of any Debt (other than Non-Recourse Debt) in excess of $100,000,000 of
the Borrower or any Covered Subsidiary or any Significant Subsidiary or enables the holder of such Debt or any Person acting on such holder's behalf to accelerate the maturity thereof; 

        (g)  the
Borrower or any Significant Subsidiary shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself
or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it
or any substantial part of its property, or shall consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced
against it, or shall make a general assignment for the benefit of creditors, or shall fail generally to pay its debts as they become due, or shall take any corporate action to authorize any of the
foregoing; 

        (h)  an
involuntary case or other proceeding shall be commenced against the Borrower or any Significant Subsidiary seeking liquidation, reorganization or other relief with
respect to it or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar
official of it or any substantial part of its property, and such involuntary case or other proceeding shall remain undismissed and unstayed for a period of 60 days; or an order for relief shall
be entered against the Borrower or any Significant Subsidiary under the federal bankruptcy laws as now or hereafter in effect; 

        (i)    any
member of the ERISA Group shall fail to pay when due an amount or amounts aggregating in excess of $5,000,000 which it shall have become liable to pay under Title IV
of ERISA; or notice of intent to terminate a Material Plan shall be filed under Title IV of ERISA by any member of the ERISA Group, any plan administrator or any combination of the foregoing; or the
PBGC shall institute proceedings under Title IV of ERISA to terminate, to impose liability (other than for premiums under Section 4007 of ERISA) in respect of, or to cause a trustee to be
appointed to administer, any Material Plan; or a condition shall exist by reason of which the PBGC would be entitled to obtain a decree adjudicating that any Material Plan must be terminated; or there
shall occur a complete or partial withdrawal from, or a default, within the meaning of Section 4219(c)(5) of ERISA, with respect to, one or more Multiemployer Plans which could cause one or
more members of the ERISA Group to incur a current payment obligation in excess of $25,000,000; or 

26

 

        (j)    a
judgment or order for the payment of money in excess of $25,000,000 shall be rendered against the Borrower or any Subsidiary of the Borrower and such judgment or order
shall continue unsatisfied and unstayed for a period of 30 days; 

then,
and in every such event, the Administrative Agent shall (i) if requested by the Required Lenders, by notice to the Borrower terminate the Commitments and they shall thereupon terminate,
and (ii) if requested by the Required Lenders, by notice to the Borrower declare the Loans (together with accrued interest thereon) to be, and the Loans (together with accrued interest thereon)
shall thereupon become, immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower;  provided that in the case of any of
the Events of Default specified in clause (g) or (h) above with respect to the Borrower, without any
notice to the Borrower or any other act by the Administrative Agent or the Lenders, the Commitments shall thereupon terminate and the Loans (together with accrued interest thereon) shall become
immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower. 

        6.02    Notice of Default.    The Administrative Agent shall give notice to the Borrower under Section 6.01(c)
promptly upon being requested to do so by any Lender and shall thereupon notify all the Lenders thereof. 

27

 
 
 

ARTICLE VII    
    
    THE ADMINISTRATIVE AGENT    
  

        7.01    Appointment and Authorization.    Each Lender irrevocably appoints and authorizes the Administrative Agent to
take such action as agent on its behalf and to exercise such powers under the Loan Documents as are delegated to the Administrative Agent by the terms hereof or thereof, together with all such powers
as are reasonably incidental thereto. 

        7.02    Administrative Agent and Affiliates.    Bank of America shall have the same rights and powers under this
Agreement as any other Lender and may exercise or refrain from exercising the same as though it were not the Administrative Agent, and Bank of America and its affiliates may accept deposits from, lend
money to, and generally engage in any kind of business with, the Borrower or any Subsidiary or affiliate of the Borrower as if it were not the Administrative Agent hereunder. 

        7.03    Action by the Administrative Agent.    The obligations of the Administrative Agent hereunder are only those
expressly set forth herein. Without limiting the generality of the foregoing, the Administrative
Agent shall not be required to take any action with respect to any Default, except as expressly provided in Article VI. 

        7.04    Consultation with Experts.    The Administrative Agent may consult with legal counsel (who may be counsel for
the Borrower), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken by it in good faith in accordance with the advice of
such counsel, accountants or experts. 

        7.05    Liability of Agent.    Neither the Administrative Agent nor any of its respective affiliates nor any of the
respective directors, officers, agents or employees of any of the foregoing shall be liable for any action taken or not taken by it in connection herewith (i) with the consent or at the request
of the Required Lenders or (ii) in the absence of its own gross negligence or willful misconduct. Neither the Administrative Agent nor any of its respective affiliates nor any of the respective
directors, officers, agents or employees of any of the foregoing shall be responsible for or have any duty to ascertain, inquire into or verify (a) any statement, warranty or representation
made in connection with this Agreement or any borrowing hereunder; (b) the performance or observance of any of the covenants or agreements of the Borrower; (c) the satisfaction of any
condition specified in Article III, except in the case of the Administrative Agent receipt of items required to be delivered to it; or (d) the validity, effectiveness or genuineness of
this Agreement, the Notes or any other instrument or writing furnished in connection herewith. The Administrative Agent shall incur no liability by acting in reliance upon any notice, consent,
certificate, statement, or other writing (which may be a bank wire, telex, facsimile transmission or similar writing) believed by it to be genuine or to be signed by the proper party or parties. 

        7.06    Indemnification.    Each Lender shall, ratably in accordance with its Commitment, indemnify the Administrative
Agent, its affiliates and its directors, officers, agents and employees (to the extent not reimbursed by the Borrower) against any cost, expense (including counsel fees and disbursements), claim,
demand, action, loss or liability (except such as result from such indemnitees' gross negligence or willful misconduct) that such indemnitees may suffer or incur in connection with the Administrative
Agent's role under this Agreement or any related action taken or omitted by such indemnitees hereunder. 

        7.07    Credit Decision.    Each Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent, the Lead Arranger or any other Lender, and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent, the Lead Arranger or any other Lender, and based on such documents and 

28

 

information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking any action under this Agreement. 

        7.08    Successor Agent.    The Administrative Agent may resign at any time subject to the appointment of a successor
Administrative Agent by giving notice to the Lenders and the Borrower. Upon any such resignation, the Required Lenders shall have the right to appoint a successor Administrative Agent with the consent
of the Borrower, which consent shall not be unreasonably withheld or delayed; provided that no such consent shall be required if the successor Administrative Agent is a Lender. If no successor
Administrative Agent shall have been so appointed, and shall have accepted such appointment, within 30 days after the retiring Administrative Agent's giving of notice of resignation, then the
retiring Administrative Agent may, on behalf of the Lenders, and without the Borrower's consent, appoint a successor Administrative Agent, which shall be a commercial bank organized or licensed under
the laws of the United States of America or of any State thereof and having a combined capital and surplus of at least $1,000,000,000. Upon the acceptance of its appointment as Administrative Agent
hereunder by a successor Administrative Agent, such successor Administrative Agent shall thereupon succeed to and become vested with all the rights and duties of the retiring Administrative Agent, and
the retiring Administrative Agent shall be discharged from its duties and obligations hereunder. After any retiring Administrative Agent's resignation hereunder as Administrative Agent, the provisions
of this Article shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent. 

        7.09    Administrative Agents' Fees.    The Borrower shall pay to the Administrative Agent for its own account fees in
the amounts and at the times previously agreed upon between the Borrower and the Administrative Agent pursuant to a letter agreement. 

29

 
 
 

ARTICLE VIII    
    
    CHANGE IN CIRCUMSTANCES    
  

        8.01    Basis for Determining Interest Rate Inadequate or Unfair.    If on or prior to the first day of any Interest
Period for any Borrowing consisting of Euro-Dollar Loans: 

        (a)  the
Administrative Agent is advised by the Required Lenders that deposits in Dollars and in the required amounts are not being offered to the Lenders in the relevant
market for such Interest Period, or 

        (b)  the
Required Lenders advise the Administrative Agent that the London Interbank Offered Rate, as determined by the Administrative Agent, will not adequately and fairly
reflect the cost to such Lenders of funding their Euro-Dollar Loans for such Interest Period, 

the
Administrative Agent shall forthwith give notice thereof to the Borrower and the Lenders, whereupon until the Administrative Agent notifies the Borrower that the circumstances giving rise to such
suspension no longer exist, the obligations of the Lenders to make Euro-Dollar Loans shall be suspended. Unless the Borrower notifies the Administrative Agent at least two Domestic
Business Days before the date of any Borrowing consisting of Euro-Dollar Loans for which a Notice of Borrowing has previously been given that it elects not to borrow on such date, such
Borrowing shall instead be made as a Base Rate Borrowing. The Administrative Agent shall promptly notify the Lenders of any election by the Borrower pursuant to the preceding sentence. 

        8.02    Illegality.    If, after the date of this Agreement, the adoption of any applicable law, rule or regulation,
or any change in any applicable law, rule or regulation, or any change in the interpretation or administration thereof by any governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender (or its Euro-Dollar Lending Office) with any request or directive (whether or not having the force of law) of any such
authority, central bank or comparable agency shall make it unlawful or impossible for any Lender (or its Euro-Dollar Lending Office) to make, maintain or fund its Euro-Dollar
Loans and such Lender shall so notify the Administrative Agent, the Administrative Agent shall forthwith give notice thereof to the other Lenders and the Borrower, whereupon until such Lender notifies
the Borrower and the Administrative Agent that the circumstances giving rise to such suspension no longer exist, the obligation of such Lender to make Euro-Dollar Loans shall be suspended.
Before giving any notice to the Administrative Agent pursuant to this Section, such Lender shall designate a different Euro-Dollar Lending Office if such designation will avoid the need
for giving such notice and will not, in the sole judgment of such Lender, be otherwise disadvantageous to such Lender. If such Lender shall determine that it may not lawfully continue to maintain and
fund any of its outstanding Euro-Dollar Loans to maturity and shall so specify in such notice, the Borrower shall immediately prepay in full the then outstanding principal amount of each
such Euro-Dollar Loan, together with accrued interest thereon. Concurrently with prepaying each such Euro-Dollar Loan, the Borrower shall borrow a Base Rate Loan in an equal
principal amount from such Lender (on which interest and principal shall be payable contemporaneously with the related Euro-Dollar Loans of the other Lenders), and such Lender shall make
such a Base Rate Loan. 

        8.03    Increased Cost and Reduced Return.    

        (a)  If
after the Effective Date, the adoption of any applicable law, rule or regulation, or any change in any applicable law, rule or regulation, or any change in the
interpretation or administration thereof by any governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by any Lender (or its
Applicable 

30

 

Lending Office) with any request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency: 

          (i)  shall
subject any Lender (or its Applicable Lending Office) to any tax, duty or other charge with respect to its Loans, its Note or its obligation to make Loans or
shall change the basis of taxation of payments to any Lender (or its Applicable Lending Office) of the principal of or interest on its Loans or any other amounts due under this Agreement in respect of
its Loans or its obligation to make Loans (except for changes in the rate of tax on the overall net income of such Lender or its Applicable Lending Office imposed by the jurisdiction in which such
Lender's principal executive office or Applicable Lending Office is located) or subjects such Lender to United States withholding tax; or 

        (ii)  shall
impose, modify or deem applicable any reserve (including, without limitation, any such requirement imposed by the Board of Governors of the Federal Reserve
System, but excluding, with respect to any Euro-Dollar Loan any such requirement included in the Euro-Dollar Reserve Percentage), special deposit, insurance assessment or
similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender (or its Applicable Lending Office) or shall impose on any Lender (or its Applicable
Lending Office) or on the United States market for certificates of deposit or the London interbank market any other condition affecting its Euro-Dollar Loans, its Note or its obligation to
make Euro-Dollar Loans; 

and
the result of any of the foregoing is to increase the cost to such Lender (or its Applicable Lending Office) of making or maintaining any Loan, or to reduce the amount of any sum received or
receivable by such Lender (or its Applicable Lending Office) under this Agreement or under its Note with respect thereto, by an amount deemed by such Lender to be material, then, subject to
clause (d) of this Section, within 15 days after demand by such Lender (with a copy to the Administrative Agent), the Borrower shall pay to such Lender such additional amount or amounts
as will compensate such Lender for such increased cost or reduction (subject in the case of clause (a)(i), to delivery by such Lender of IRS form W-8 ECI or W-8
BEN pursuant to Section 2.18 that demonstrates complete exemption from United States withholding tax as of the date such Lender first became a party hereto). 

        (b)  If,
after the Effective Date, any Lender shall have determined that any applicable law, rule or regulation regarding capital adequacy (irrespective of the actual timing
of the adoption or implementation thereof and including, without limitation, any law or regulation adopted pursuant to the July 1988 report of the Basle Committee on Banking Regulations and
Supervisory Practices) or any change therein, or any change in the interpretation or administration thereof by any governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender (or its Applicable Lending Office) 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 capital of such Lender (or its Parent) as a consequence of such Lender's
obligations hereunder to a level below that which such Lender (or its Parent) could have achieved but for such law, regulation, change or compliance (taking into consideration its policies with
respect to capital adequacy) by an amount deemed by such Lender to be material, then, subject to clause (d) of this Section, from time to time, within 15 days after demand by such Lender
(with a copy to the Administrative Agent), the Borrower shall pay to such Lender such additional amount or amounts as will compensate such Lender (or its Parent) for such reduction. 

        (c)  Each
Lender will promptly notify the Borrower and the Administrative Agent of any event of which it has knowledge, occurring after the date hereof, which will entitle
such Lender to compensation pursuant to this Section and will designate a different Applicable Lending Office if 

31

 

such designation will avoid the need for, or reduce the amount of, such compensation and will not, in the sole judgment of such Lender, be otherwise disadvantageous to such Lender. 

        (d)  Borrower
shall not be required to reimburse any Lender for any increased costs, reductions or payments under this Section arising prior to 90 days preceding the
date of any claim or demand by a Lender for compensation under this Section except to the extent the applicable law or regulation is imposed retroactively and the demand or claim is made within
90 days of the effect (in which case such claim or demand shall be submitted within 90 days of the date upon which such Lender becomes aware or should reasonably be aware of such law or
regulation). A certificate of any Lender claiming compensation under this Section and setting forth the additional amount or amounts to be paid to it hereunder (with detail sufficient to allow the
verification by Borrower of its calculations) shall be conclusive in the absence of manifest error. In determining such amount, such Lender may use any reasonable averaging and attribution methods. 

        8.04    Base Rate Loans Substituted for Affected Euro-Dollar Loans.    If (i) the obligation of any
Lender to make Euro-Dollar Loans has been suspended pursuant to Section 8.02 or (ii) any Lender has demanded compensation under Section 8.03(a) and the Borrower shall,
by at least five Euro-Dollar Business Days' prior notice to such Lender through the Administrative Agent, have elected that the provisions of this Section shall apply to such Lender, then,
unless and until such Lender notifies the Borrower that the circumstances giving rise to such suspension or demand for compensation no longer exist: 

        (a)  all
Loans which would otherwise be made by such Lender as Euro-Dollar Loans shall be made instead as Base Rate Loans (on which interest and principal shall
be payable contemporaneously with the related Euro-Dollar Loans of the other Lenders), and 

        (b)  after
each of its Euro-Dollar Loans has been repaid, all payments of principal which would otherwise be applied to repay such Euro-Dollar Loans
shall be applied to repay its Base Rate Loans instead. 

32

  

 
 

ARTICLE IX    
    
    MISCELLANEOUS    
  

        9.01    Notices.    All notices, requests and other communications to any party hereunder shall be in writing
(including bank wire, telex, telecopy or similar writing) and shall be given to such party: (x) in the case of the Borrower or the Administrative Agent, at its address or telex or telecopier
number set forth on the signature pages hereof, (y) in the case of any Lender, at its address or telex or telecopier number set forth in its Administrative Questionnaire or (z) in the
case of any party, such other address or telex or telecopier number as such party may hereafter specify for the purpose by notice to the Administrative Agent and the Borrower. Each such notice,
request or other communication shall be effective (i) if given by telex, when such telex is transmitted to the telex number specified in this Section and the appropriate answerback is received,
(ii) if given by mail, 72 hours after such communication is deposited in the mails with first class postage prepaid, addressed as aforesaid or (iii) if given by any other means,
when delivered or received at the address specified in this Section; provided that notices to the Administrative Agent under Article II or Article VIII shall not be effective until
received. 

        9.02    No Waivers.    No failure or delay by the Administrative Agent or any Lender in exercising any right, power or
privilege hereunder or under any Note shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other
right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law. 

        9.03    Expenses; Documentary Taxes; Indemnification.    

        (a)  The
Borrower shall pay (i) all reasonable out-of-pocket expenses of the Administrative Agent and the Lead Arranger, including reasonable
fees and disbursements of counsel for the Administrative Agent, in connection with the preparation of this Agreement and all related documents, the negotiation, closing and syndication of this
Agreement and the Loans (including due diligence with respect thereto), the administration of this Agreement and the Loans, and in connection with any waiver, amendment or consent hereunder or any
Default or alleged Default hereunder and (ii) if an Event of Default occurs,
all reasonable out-of-pocket expenses incurred by the Administrative Agent or any Lender, including fees and disbursements of counsel, in connection with such Event of Default
and collection, bankruptcy, insolvency and other enforcement proceedings resulting therefrom. The Borrower shall indemnify each Lender against any transfer taxes, documentary taxes, mortgage recording
taxes, assessments or charges made by any governmental authority by reason of the execution and delivery or enforcement of any of the Loan Documents. 

        (b)  The
Borrower agrees to indemnify the Administrative Agent, the Lead Arranger and each Lender, their respective affiliates and the respective directors, officers, agents
and employees of the foregoing (each an "Indemnitee") and hold each Indemnitee harmless from and against any and all liabilities, losses, damages, costs and expenses of any kind, including, without
limitation, the reasonable fees and disbursements of counsel, which may be incurred by such Indemnitee in connection with any investigative, administrative or judicial proceeding (whether or not such
Indemnitee shall be designated a party thereto) brought or threatened relating to or arising out of this Agreement or any actual or proposed use of proceeds of Loans hereunder; provided that no
Indemnitee shall have the right to be indemnified hereunder for such Indemnitee's own gross negligence or willful misconduct as determined by a court of competent jurisdiction. 

        9.04    Amendments and Waivers.    No amendment or waiver of the terms of this Agreement or the other Loan Documents
shall be made or be effective unless such amendment or waiver is in writing and is signed by the Borrower and the Required Lenders (and, if the rights or duties of the 

33

 

Administrative Agent are affected thereby, by the Administrative Agent); provided that no such amendment or waiver shall, unless signed by all the Lenders, (i) except as set forth in
Section 2.24 increase or decrease the amount of the Commitment of any Lender (except for a ratable decrease in the Commitments of all Lenders) or subject any Lender to any additional
obligation, (ii) reduce the principal of or rate of interest on any Loan or any fees hereunder, (iii) postpone the date fixed for any payment of principal of or interest on any Loan or
interest thereon or any fees hereunder, or the Termination Date, (iv) change the percentage of the Commitments or of the aggregate unpaid principal amount of the Notes, or the percentage of
Lenders, which shall be required for the Lenders or any of them to take any action under this Section or any other provision of this Agreement or (v) render more restrictive the ability of any
Lender to assign or grant participations in its Commitment under Section 9.05. 

        9.05    Successors and Assigns.    

        (a)  This
Agreement and the other Loan Documents to which Borrower is a party will be binding upon and inure to the benefit of Borrower, the Administrative Agent, each of the
Lenders, and their respective successors and permitted assigns, except that the Borrower may not assign its rights hereunder or thereunder or any
interest herein or therein without the prior written consent of all the Lenders. Each Lender represents that it is not acquiring its Note with a view to the distribution thereof within the meaning of
the Securities Act of 1933, as amended (subject to any requirement that disposition of such Note must be within the control of such Lender). Any Lender may at any time pledge its Note or any other
instrument evidencing its rights as a Lender under this Agreement to a
Federal Reserve Bank, but no such pledge shall release that Lender from its obligations hereunder or grant to such Federal Reserve Bank the rights of a Lender hereunder absent foreclosure of such
pledge. 

        (b)  From
time to time following the Effective Date, each Lender may assign to one or more Eligible Assignees all or any portion of its Commitment;  provided that (i) such Eligible Assignee, if not then a
Lender or an Affiliate of the assigning Lender, shall be approved by each of the
Administrative Agent and (if no Default or Event of Default then exists) the Borrower (neither of which approvals shall be unreasonably withheld or delayed), (ii) such assignment shall be
evidenced by an Assignment and Assumption Agreement substantially in the form of Exhibit F, a copy of which shall be furnished to the Administrative Agent as hereinbelow provided,
(iii) except in the case of an assignment to an Affiliate of the assigning Lender, to another Lender or of the entire remaining Commitment of the
assigning Lender, the assignment shall not assign a portion of the Commitments that is equivalent to less than $5,000,000, and (iv) the effective date of any such assignment shall be as
specified in the Assignment and Assumption Agreement, but not earlier than the date which is five Domestic Business Days after the date the Administrative Agent has received the Assignment and
Assumption Agreement. Upon the effective date of the Assignment and Assumption Agreement, the Eligible Assignee named therein shall be a Lender for all purposes of this Agreement, with the Commitment
therein set forth and, to the extent of such Commitment, the assigning Lender shall be released from its further obligations under this Agreement. Borrower agrees that it shall execute and deliver
(against delivery by the assigning Lender to Borrower of its Note) to such assignee Lender, a Note evidencing that assignee Lender's Commitment, and to the assigning Lender, a Note evidencing the
remaining Commitment retained by the assigning Lender. 

        (c)  By
executing and delivering an Assignment and Assumption Agreement, the Eligible Assignee thereunder acknowledges and agrees that: (i) other than the
representation and warranty that it is the legal and beneficial owner of the Commitment being assigned thereby free and clear of any adverse claim, the assigning Lender has made no representation or
warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with this Agreement or the execution, legality, validity, enforceability,
genuineness or 

34

 

sufficiency of this Agreement or any other Loan Document; (ii) the assigning Lender has made no representation or warranty and assumes no responsibility with respect to the financial condition
of Borrower or the performance by Borrower of its obligations under this Agreement; (iii) it has received a copy of this Agreement, together with copies of the most recent financial statements
delivered pursuant to Section 5.01 and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into such Assignment and
Assumption Agreement; (iv) it will, independently and without reliance upon the Administrative Agent or any Lender and based on such documents and information as it shall deem appropriate at
the time, continue to make its own credit decisions in taking or not taking action under this Agreement; (v) it appoints and authorizes the Administrative Agent to take such action and to
exercise such powers under this Agreement as are delegated to the Administrative Agent by this Agreement; and (vi) it will perform in accordance with their terms all of the obligations which by
the terms of this Agreement are required to be performed by it as a Lender. 

        (d)  The
Administrative Agent shall maintain a copy of each Assignment and Assumption Agreement delivered to it and a register (the "Register") of the names and address of
each of the Lenders and the Commitment held by each Lender, giving effect to each Assignment and Assumption Agreement. The Register shall be available during normal business hours for inspection by
Borrower or any Lender upon reasonable prior notice to the Administrative Agent. After receipt of a completed Assignment and Assumption Agreement executed by any Lender and an Eligible Assignee
(including without limitation any existing Lender), and receipt of an assignment fee of $3,500 from such Lender or Eligible Assignee, the Administrative Agent shall, promptly following the effective
date thereof, provide to Borrower and the affected Lenders notice of such effectiveness. Borrower, the Administrative Agent and the Lenders shall deem and treat the Persons listed as Lenders in the
Register as the holders and owners of the Commitments listed therein for all purposes hereof, and no assignment or transfer of any Commitment shall be effective, in each case unless and until an
Assignment and Assumption Agreement effecting the assignment or transfer thereof shall have been accepted by the Administrative Agent and recorded in the Register as provided above. Prior to such
recordation, all amounts owed with respect to the applicable Commitment shall be owed to the Lender listed in the Register as the owner thereof, and any request, authority or consent of any Person
who, at the time of making such request or giving such authority or consent, is listed in the Register as a Lender shall be conclusive and binding on any subsequent holder, assignee or transferee of
the corresponding Commitment. 

        (e)  Each
Lender may from time to time grant participations to one or more Lenders or other financial institutions (including
another Lender) in its Commitment; provided, however, that (i) such Lender's obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, (iii) the participating Lenders or other financial institutions
shall not be a Lender hereunder for any purpose (provided that the participation agreement may provide for a Lender to allow the participant the derivative benefit of Sections 2.22, 8.03 and 9.03, but
such derivative benefits shall not increase the overall cost to Borrower under such Sections), (iv) Borrower, the Administrative Agent and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender's rights and obligations under this Agreement, (v) the participation interest shall be expressed as a percentage of the granting
Lender's Commitment as it then exists and shall not restrict an increase in the Commitments, or in the granting Lender's Commitment, so long as the amount of the participation interest is not affected
thereby and (vi) the consent of the holder of such participation interest shall not be required for amendments, consents or waivers of provisions of the Loan Documents  other than those which
(A) result in a decrease in fees, interest rate spreads or principal payable to the holder of such participation,
(B) increase the Commitment of the granting Lenders and thereby increase the funding requirements of the holder of such a participation, or (C) extend the Termination Date. 

35

 

        (f)    Notwithstanding
anything to the contrary contained herein, any Lender (a "Granting Lender") may grant to special purpose funding vehicles (each, an "SPC") of such
Granting Lender, identified as such in writing from time to time by the Granting Lender to the Administrative Agent and the Borrower the option to provide all or any part of any Loan that such
Granting Lender would otherwise be obligated to make pursuant to this Agreement, provided that (i) nothing herein shall constitute a commitment to make any Loan by any SPC, (ii) if an
SPC elects not to exercise such option or otherwise fails to provide all or any part of such Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof, and
(iii) except as expressly set forth herein, the rights of any such SPC shall be derivative of the rights of the Granting Lender, and each SPC shall be subject to all of the
restrictions upon the Granting Lender herein contained. Each SPC shall be conclusively presumed to have made arrangements with its Granting Lender for the exercise of voting and other rights hereunder
in a manner which is acceptable to the SPC, and the Administrative Agent, the Lenders and Borrower and each other party shall be entitled to rely upon and deal solely with the Granting Lender with
respect to Loans made by or through its SPC. The making of a Loan by an SPC hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as if, such Loan were made by the
Granting Lender. 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 related
Granting Lender). In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one
day after the payment in full of all outstanding 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 or similar proceedings under the laws of the United States of America or any State thereof. In addition, notwithstanding anything to
the contrary contained in this Section 9.05, each SPC may, at any time, without regard to the period required by Section 9.05(b)(iv), (i) with notice to, but without the prior
written consent of, the Borrower or the Administrative Agent, and without paying any processing fee therefor, assign all or a portion of its interests in any Loans to its Granting Lender (or to any
other SPC of such Granting Lender) or to any financial institutions providing liquidity and/or credit facilities to or for the account of such SPC to fund the Loans made by such SPC or to support the
securities (if any) issued by such SPC to fund such Loans (but nothing contained herein shall be construed in derogation of the obligation of the Granting Lender to make Loans hereunder), and
(ii) disclose on a confidential basis any non-public information relating to its Loans to any rating agency, commercial paper dealer or provider of a surety, guarantee or credit or
liquidity enhancement to such SPC. This Section 9.05(f) may not be amended without the consent of all SPC's then designated to the Administrative Agent in accordance with the foregoing
provisions of this Section. 

        9.06    New York Law; Submission to Jurisdiction.    This Agreement and each Note shall be construed in accordance
with and governed by the laws of the State of New York. The Borrower hereby submits to the nonexclusive jurisdiction of the United States District Court for the Central District of California and of
any California State court sitting in Los Angeles, California (in each case, applying such law) for purposes of all legal proceedings arising out of or relating to this Agreement or the transactions
contemplated hereby. The Borrower irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such proceeding brought
in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum. 

        9.07    Counterparts; Integration.    This Agreement may be signed in any number of counterparts, each of which shall
be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement constitutes the entire agreement and understanding among 

36

 

the parties hereto and supersedes any and all prior agreements and understandings, oral or written, relating to the subject matter hereof. 

        9.08    Several Obligations.    The obligations of the Lenders hereunder are several. Neither the failure of any
Lender to carry out its obligations hereunder nor the failure of this Agreement to be duly authorized,
executed and delivered by any Lender shall relieve any other Lender of its obligations hereunder (or affect the rights hereunder of such other Lender). No Lender shall be responsible for the
obligations of, or any action taken or omitted by, any other Lender hereunder. 

        9.09    Sharing of Set-Offs.    Each Lender agrees that if it shall, by exercising any right of
set-off or counterclaim or otherwise, receive payment of a proportion of the aggregate amount of principal and interest due with respect to any Note held by it which is greater than the
proportion received by any other Lender in respect of the aggregate amount of principal and interest due with respect to any Note held by such other Lender, the Lender receiving such proportionately
greater payment shall purchase such participations in the Notes held by the other Lenders, and such other adjustments shall be made, as may be required so that all such payments of principal and
interest with respect to the Notes held by the Lenders shall be shared by the Lenders pro rata; provided that nothing in this Section shall impair the
right of any Lender to exercise any right of set-off or counterclaim it may have and to apply the amount subject to such exercise to the payment of indebtedness of the Borrower other than
its indebtedness under the Notes. The Borrower agrees, to the fullest extent it may effectively do so under applicable law, that any holder of a participation in a Note, whether or not acquired
pursuant to the foregoing arrangements, may exercise rights of set-off or counterclaim and other rights with respect to such participation as fully as if such holder of a participation
were a direct creditor of the Borrower in the amount of such participation. 

        9.10    WAIVER OF JURY TRIAL.    EACH OF THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY
WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

[Remainder of this page intentionally left blank.]  

37

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

	 	 	HILTON HOTELS CORPORATION
	

 	
 	

By:	
 	

/s/  MARIEL C. ALBRECHT      

	 	 	Name:	 	Mariel C. Albrecht
	 	 	Title:	 	Senior Vice President and Treasurer
	

 	
 	

Address for Notices:
	

 	
 	

Mariel C. Albrecht,

Senior Vice President and Treasurer

Hilton Hotels Corporation

World Headquarters

9336 Civic Center Drive

Beverly Hills, California 90210

Telecopier: 310/205-7849

38

 

	 	 	BANK OF AMERICA, N.A., AS ADMINISTRATIVE AGENT
	

 	
 	

By:	
 	

/s/  JANICE HAMMOND      
 Janice Hammond, Vice President
	

 	
 	

Bank of America, N.A.

555 South Flower Street

11th Floor Mail Code CA9-706-11-01

Los Angeles, California 90071

Attn: Janice Hammond

Telecopier: 213/228-2299

Telephone: 213/228-9861

E-mail: janice.hammond@bankofamerica.com
	

 	
 	
BANK OF AMERICA, N.A., AS A LENDER
	

 	
 	

By:	
 	

/s/  MARK GREGOR-PEARSE      
 Mark Gregor-Pearse, Managing Director
	

 	
 	

Address for Notices:
	

 	
 	

Bank of America, N.A.

Portfolio Management—Gaming & Leisure

555 South Flower Street, 11th Floor CA9-706-11-01

Los Angeles, California 90071

Attn: Scott L. Faber, Principal

Telecopier: 213/228-2641

Telephone: 213/228-3244

E-Mail: mark.gregor-pearse@bankofamerica.com
	

 	
 	

with a copy to:
	

 	
 	

Bank of America, N.A.

Client Management—Gaming and Leisure

555 South Flower Street, 11th Floor CA9-706-11-01

Los Angeles, California 90071

Attn: William S. Newby, Managing Director

Telecopier: 213/228-3145

Telephone: 213/228-2438

E-Mail: bill.newby@bankofamerica.com

39

 

	

 	
 	
THE BANK OF NOVA SCOTIA
	

 	
 	

By:	
 	

/s/  M. VAN OTTERLOO      

	 	 	Title:	 	Managing Director, Corporate
	 	 	 	 	

40

 

	

 	
 	
FIRST UNION NATIONAL BANK
	

 	
 	

By:	
 	

/s/  DOUGLAS A. NICKEL      

	 	 	Title:	 	Vice President
	 	 	 	 	

41

 

	

 	
 	
WACHOVIA BANK, N.A.
	

 	
 	

By:	
 	

/s/  DOUGLAS A. NICKEL      

	 	 	Title:	 	Vice President
	 	 	 	 	

42

 

	

 	
 	
CREDIT LYONNAIS NEW YORK BRANCH
	

 	
 	

By:	
 	

/s/  JOSEPH A. ASCIOLLA      

	 	 	Title:	 	First Vice President
	 	 	 	 	

43

 

	

 	
 	
THE BANK OF NEW YORK
	

 	
 	

By:	
 	

/s/  MEHRASA RAYGANI      

	 	 	Title:	 	Vice President
	 	 	 	 	

44

 

	

 	
 	
CREDIT SUISSE FIRST BOSTON
	

 	
 	

By:	
 	

/s/  BILL O'DALY      

	 	 	Title:	 	Vice President
	 	 	 	 	

	

 	
 	

By:	
 	

/s/  CASSANDRA DROOGAN      

	 	 	Title:	 	Assistant Vice President
	 	 	 	 	

45

 

	

 	
 	
BANK OF HAWAII
	

 	
 	

By:	
 	

/s/  JAMES POLK      

	 	 	Title:	 	Vice President
	 	 	 	 	

46

 

	

 	
 	
BNP PARIBAS
	

 	
 	

By:	
 	

/s/  JANICE S. H. HO      

	 	 	Title:	 	Director
	 	 	 	 	

	

 	
 	

By:	
 	

/s/  TJALLING TERPSTRA      

	 	 	Title:	 	Director
	 	 	 	 	

47

 

	

 	
 	
FIRST HAWAIIAN BANK
	

 	
 	

By:	
 	

/s/  CHARLES L. JENKINS      

	 	 	Title:	 	Vice President, Manager
	 	 	 	 	

48

 

	

 	
 	
FIRST TENNESSEE BANK NATIONAL ASSOCIATION
	

 	
 	

By:	
 	

/s/  JAMES H. MOORE, JR.      

	 	 	Title:	 	Senior Vice President
	 	 	 	 	

49

 

	

 	
 	
KBC BANK
	

 	
 	

By:	
 	

/s/  ROBERT SNAUFFER      

	 	 	Title:	 	First Vice President
	 	 	 	 	

	

 	
 	

By:	
 	

/s/  ERIC RASKIN      

	 	 	Title:	 	Vice President
	 	 	 	 	

50

 

	

 	
 	
LASALLE BANK NATIONAL ASSOCIATION
	

 	
 	

By:	
 	

/s/  ERICA WICHLANDER      

	 	 	Title:	 	Commercial Banking Officer
	 	 	 	 	

51

 

	

 	
 	
THE NORTHERN TRUST COMPANY
	

 	
 	

By:	
 	

/s/  NICOLE D. BOEHM      

	 	 	Title:	 	Second Vice President
	 	 	 	 	

52

 

	

 	
 	
U.S. BANK NATIONAL ASSOCIATION
	

 	
 	

By:	
 	

/s/  SCOTT J. BELL      

	 	 	Title:	 	Vice President
	 	 	 	 	

53

 

	

 	
 	
WELLS FARGO BANK, N.A.
	

 	
 	

By:	
 	

/s/  LUCY NIXON      

	 	 	Title:	 	Vice President
	 	 	 	 	

54

QuickLinks

TABLE OF CONTENTS

SHORT TERM CREDIT AGREEMENT

ARTICLE I DEFINITIONS

ARTICLE II THE CREDITS

ARTICLE III CONDITIONS

ARTICLE IV REPRESENTATIONS AND WARRANTIES

ARTICLE V COVENANTS

ARTICLE VI DEFAULTS

ARTICLE VII THE ADMINISTRATIVE AGENT

ARTICLE VIII CHANGE IN CIRCUMSTANCES

ARTICLE IX MISCELLANEOUS

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