Document:

Exhibit
10(l)

 

Execution Copy

 

 

 

AMENDED AND RESTATED

CREDIT AGREEMENT

(MULTI-YEAR FACILITY)

 

 

dated as of July 28,
2004

 

 

among

 

SCIENCE APPLICATIONS

INTERNATIONAL CORPORATION,

 

JPMORGAN CHASE BANK,

as Administrative Agent

 

CITICORP USA, INC.,

as Syndication Agent

 

 

MORGAN STANLEY BANK,

WACHOVIA BANK, NATIONAL ASSOCIATION,

THE ROYAL BANK OF SCOTLAND PLC,

as Co-Documentation Agents

 

and

 

The Lenders Party Hereto

 

 

J.P. MORGAN SECURITIES
INC.

SALOMON SMITH BARNEY INC.

as Joint Bookrunners and Lead Arrangers

 

 

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE I

  
	
   

  	
   

  	
   

  
	
  DEFINITIONS AND ACCOUNTING TERMS

  
	
   

  	
   

  	
   

  
	
  Section 1.01.

  	
  Defined
  Terms

  	
   

  
	
  Section 1.02.

  	
  Performance;
  Time

  	
   

  
	
  Section 1.03.

  	
  Accounting
  Principles

  	
   

  
	
  Section 1.04.

  	
  Use
  of Defined Terms

  	
   

  
	
  Section 1.05.

  	
  Rounding

  	
   

  
	
  Section 1.06.

  	
  Exhibits
  and Schedules

  	
   

  
	
  Section 1.07.

  	
  References
  to “Subsidiaries”

  	
   

  
	
  Section 1.08.

  	
  Miscellaneous
  Terms

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
   

  	
   

  	
   

  
	
  COMMITMENTS;
  INTEREST, FEES, PAYMENT PROCEDURES

  
	
   

  	
   

  	
   

  
	
  Section 2.01.

  	
  The
  Commitments

  	
   

  
	
  Section 2.02.

  	
  Borrowings,
  Conversions and Continuations of Committed Loans

  	
   

  
	
  Section 2.03.

  	
  Competitive
  Loans

  	
   

  
	
  Section 2.04.

  	
  Prepayments

  	
   

  
	
  Section 2.05.

  	
  Voluntary
  Reduction of Commitments

  	
   

  
	
  Section 2.06.

  	
  Principal
  and Interest

  	
   

  
	
  Section 2.07.

  	
  Fees

  	
   

  
	
  Section 2.08.

  	
  Computation
  of Fees and Interest

  	
   

  
	
  Section 2.09.

  	
  Manner
  and Treatment of Payments among the Lenders, Borrowers and the Administrative
  Agent

  	
   

  
	
  Section 2.10.

  	
  Funding
  Sources

  	
   

  
	
  Section 2.11.

  	
  Letters of Credit

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  	
   

  
	
  TAXES,
  YIELD PROTECTION AND ILLEGALITY

  
	
   

  	
   

  	
   

  
	
  Section 3.01.

  	
  Taxes

  	
   

  
	
  Section 3.02.

  	
  Illegality

  	
   

  
	
  Section 3.03.

  	
  Increased
  Costs and Reduction of Return

  	
   

  
	
  Section 3.04.

  	
  Capital
  Adequacy

  	
   

  
	
  Section 3.05.

  	
  Breakfunding
  Costs

  	
   

  

 

i

 

	
  Section 3.06.

  	
  Inability
  to Determine Rates

  	
   

  
	
  Section 3.07.

  	
  Matters
  Applicable to all Requests for Compensation

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  	
   

  	
   

  
	
  CONDITIONS

  
	
   

  	
   

  	
   

  
	
  Section 4.01.

  	
  Conditions
  Precedent to Effective Date

  	
   

  
	
  Section 4.02.

  	
  Any
  Extensions of Credit

  	
   

  
	
  Section 4.03.

  	
  Foreign
  Currency Loans

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
   

  	
   

  	
   

  
	
  REPRESENTATIONS AND WARRANTIES

  
	
   

  	
   

  	
   

  
	
  Section 5.01.

  	
  Corporate
  Existence and Power

  	
   

  
	
  Section 5.02.

  	
  Corporate
  Authorization; No Contravention

  	
   

  
	
  Section 5.03.

  	
  Governmental
  Authorization

  	
   

  
	
  Section 5.04.

  	
  Binding
  Effect

  	
   

  
	
  Section 5.05.

  	
  Litigation

  	
   

  
	
  Section 5.06.

  	
  No
  Event of Default

  	
   

  
	
  Section 5.07.

  	
  ERISA
  Compliance

  	
   

  
	
  Section 5.08.

  	
  Regulations
  T, U and X

  	
   

  
	
  Section 5.09.

  	
  Taxes

  	
   

  
	
  Section 5.10.

  	
  Financial
  Condition

  	
   

  
	
  Section 5.11.

  	
  Environmental
  Matters

  	
   

  
	
  Section 5.12.

  	
  Subsidiaries

  	
   

  
	
  Section 5.13.

  	
  Insurance

  	
   

  
	
  Section 5.14.

  	
  Full
  Disclosure

  	
   

  
	
  Section 5.15.

  	
  Public
  Utility Holding Company Act; Investment Company Act

  	
   

  
	
  Section 5.16.

  	
  Title
  to Properties

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  	
   

  	
   

  
	
  AFFIRMATIVE COVENANTS

  
	
   

  	
   

  	
   

  
	
  Section 6.01.

  	
  Financial
  Statements

  	
   

  
	
  Section 6.02.

  	
  Certificates;
  Other Information

  	
   

  
	
  Section 6.03.

  	
  Notices

  	
   

  
	
  Section 6.04.

  	
  Preservation
  of Corporate Existence, Etc

  	
   

  
	
  Section 6.05.

  	
  Maintenance
  of Property

  	
   

  
	
  Section 6.06.

  	
  Insurance

  	
   

  
	
  Section 6.07.

  	
  Compliance
  with Laws

  	
   

  

 

ii

 

	
  Section 6.08.

  	
  Inspection
  of Property and Books and Records

  	
   

  
	
  Section 6.09.

  	
  Environmental
  Laws

  	
   

  
	
  Section 6.10.

  	
  Use
  of Proceeds

  	
   

  
	
  Section 6.11.

  	
  Regulatory Approvals

  	
   

  
	
  Section 6.12.

  	
  Transactions
  with Officers, Directors and Affiliates

  	
   

  
	
   

  
	
  ARTICLE VII

  
	
   

  
	
  NEGATIVE COVENANTS

  
	
   

  
	
  Section 7.01.

  	
  Liens,
  Negative Pledges

  	
   

  
	
  Section 7.02.

  	
  Dispositions

  	
   

  
	
  Section 7.03.

  	
  Mergers

  	
   

  
	
  Section 7.04.

  	
  Limitation
  on Guaranty Obligations

  	
   

  
	
  Section 7.05.

  	
  Synthetic
  Leases

  	
   

  
	
  Section 7.06.

  	
  Compliance
  with ERISA

  	
   

  
	
  Section 7.07.

  	
  Interest Coverage Ratio

  	
   

  
	
  Section 7.08.

  	
  Ratio of Consolidated Funded Debt to EBITDA

  	
   

  
	
  Section 7.09.

  	
  Accounting
  Changes

  	
   

  
	
  Section 7.10.

  	
  Change
  in Nature of Business

  	
   

  
	
  Section 7.11.

  	
  Hedging
  Agreements

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
   

  	
   

  	
   

  
	
  EVENTS OF DEFAULT AND REMEDIES UPON EVENT
  OF DEFAULT

  
	
   

  	
   

  	
   

  
	
  Section 8.01.

  	
  Events
  of Default

  	
   

  
	
  Section 8.02.

  	
  Remedies
  Upon Event of Default

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  
	
   

  	
   

  	
   

  
	
  THE ADMINISTRATIVE AGENT

  
	
   

  	
   

  	
   

  
	
  Section 9.01.

  	
  Appointment
  and Authorization

  	
   

  
	
  Section 9.02.

  	
  Administrative
  Agent and Affiliates

  	
   

  
	
  Section 9.03.

  	
  Lenders’
  Credit Decisions

  	
   

  
	
  Section 9.04.

  	
  Action
  by Administrative Agent

  	
   

  
	
  Section 9.05.

  	
  Liability
  of Administrative Agent

  	
   

  
	
  Section 9.06.

  	
  Indemnification

  	
   

  
	
  Section 9.07.

  	
  Successor
  Administrative Agent

  	
   

  
	
  Section 9.08.

  	
  No
  Obligations of Credit Parties

  	
   

  
	
  Section 9.09.

  	
  Documentation
  Agent; Syndication Agent

  	
   

  

 

iii

 

	
  ARTICLE X

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  Section 10.01.

  	
  Amendments;
  Consents

  	
   

  
	
  Section 10.02.

  	
  Notices

  	
   

  
	
  Section 10.03.

  	
  No
  Waiver; Cumulative Remedies

  	
   

  
	
  Section 10.04.

  	
  Costs
  and Expenses

  	
   

  
	
  Section 10.05.

  	
  Binding Effect; Assignment

  	
   

  
	
  Section 10.06.

  	
  Sharing
  of Setoffs

  	
   

  
	
  Section 10.07.

  	
  Counterparts

  	
   

  
	
  Section 10.08.

  	
  Severability

  	
   

  
	
  Section 10.09.

  	
  No
  Third Parties Benefited

  	
   

  
	
  Section 10.10.

  	
  Time

  	
   

  
	
  Section 10.11.

  	
  GOVERNING LAW AND JURISDICTION

  	
   

  
	
  Section 10.12.

  	
  WAIVER
  OF JURY TRIAL

  	
   

  
	
  Section 10.13.

  	
  Entire
  Agreement

  	
   

  
	
  Section 10.14.

  	
  Interpretation

  	
   

  
	
  Section 10.15.

  	
  Nature
  of Lenders’ Obligations

  	
   

  
	
  Section 10.16.

  	
  Indemnity; Damage Waiver

  	
   

  
	
  Section 10.17.

  	
  Nonliability
  of the Lenders

  	
   

  
	
  Section 10.18.

  	
  Failure
  to Charge Not Subsequent Waiver

  	
   

  
	
  Section 10.19.

  	
  Headings

  	
   

  
	
  Section 10.20.

  	
  Foreign
  Lenders and Participants

  	
   

  
	
  Section 10.21.

  	
  Confidentiality

  	
   

  

 

iv

 

	
  EXHIBITS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  —

  	
  Form of Request for
  Extension of Credit

  
	
  Exhibit B

  	
  —

  	
  Form of Compliance
  Certificate

  
	
  Exhibit C

  	
  —

  	
  Form of Committed Loan
  Note

  
	
  Exhibit D-1

  	
  —

  	
  Form of Competitive Bid
  Request

  
	
  Exhibit D-2

  	
  —

  	
  Form of Competitive Bid

  
	
  Exhibit D-3

  	
  —

  	
  Form of Competitive
  Loan Note

  
	
  Exhibit E

  	
  —

  	
  Form of Letter of
  Credit Request

  
	
  Exhibit F

  	
  —

  	
  Form of Notice of
  Letter of Credit Withdrawal

  
	
  Exhibit G

  	
  —

  	
  Form of Notice of
  Assignment and Acceptance

  
	
  Exhibit H

  	
  —

  	
  Form of Opinion of
  Counsel

  
	
  Exhibit I

  	
  —

  	
  Form of Notice of
  Participation

  
	
  Exhibit J

  	
  —

  	
  Form of Foreign
  Borrower Joinder Agreement

  
	
  Exhibit K

  	
  —

  	
  Form of Guaranty

  

 

v

 

	
  SCHEDULES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 2.01

  	
  —

  	
  Commitments and Pro
  Rata Shares

  
	
  Schedule 5.05

  	
  —

  	
  Litigation

  
	
  Schedule 5.06

  	
  —

  	
  Defaults

  
	
  Schedule 5.07

  	
  —

  	
  ERISA Plans

  
	
  Schedule 5.12

  	
  —

  	
  Subsidiaries

  
	
  Schedule 7.01

  	
  —

  	
  Existing Liens

  
	
  Schedule 7.02

  	
  —

  	
  Certain Permitted
  Dispositions

  
	
  Schedule 10.02

  	
  —

  	
  Lending Offices and
  Notice Addresses

  

 

vi

 

AMENDED
AND RESTATED

CREDIT AGREEMENT

(MULTI-YEAR FACILITY)

 

This AMENDED AND RESTATED
CREDIT AGREEMENT (Multi-Year Facility) dated as of July 28, 2004 is
entered into by and among SCIENCE APPLICATIONS INTERNATIONAL CORPORATION, a
Delaware corporation (the “Company”),
each lender whose name is set forth on the signature pages of this Agreement
and each lender which may hereafter become a party to this Agreement
(collectively, the “Lenders” and
individually, a “Lender”) and
JPMorgan Chase Bank, as Administrative Agent, Citicorp USA, Inc. as Syndication
Agent and Morgan Stanley Bank, Wachovia Bank, National Association and The
Royal Bank of Scotland plc, as Co-Documentation Agents.

 

RECITALS

 

A.                                   The
parties hereto are parties to the Existing Agreement (as defined below).

 

B.                                     The
Company has requested, and Requisite Lenders have agreed, to enter into this
Amended and Restated Credit Agreement (Multi-Year Facility) to amend and
restate that certain Amended and Restated Credit Agreement dated as of
April 28, 2003 among the Company, the Lenders, JPMorgan Chase Bank, as
Administrative Agent, Citicorp USA, Inc. as Syndication Agent and Morgan Stanley
Bank, Wachovia Bank, National Association and The Royal Bank of Scotland plc,
as Co-Documentation Agents (the “Existing Agreement”) in accordance with
Section 10.01 thereof.

 

In consideration of the
mutual covenants and agreements herein contained, the parties hereto covenant
and agree as follows:

 

ARTICLE I

 

DEFINITIONS AND
ACCOUNTING TERMS

 

Section 1.01.  Defined
Terms.  As used in this
Agreement, the following terms will have the following meanings, unless the
context otherwise requires:

 

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

 

“Adjusted IBOR” means, with respect to any
Foreign Currency Loan in any Foreign Currency for any Interest Period, an
interest rate per annum (rounded upwards, if

 

 

necessary, to the next
1/16 of 1%) equal to (a) IBOR for such Foreign Currency for such Interest
Period multiplied by (b) the Statutory Reserve Rate.

 

“Absolute Rate” means a rate of interest
for a Competitive Loan determined from an Absolute Rate Bid that has been
accepted by the Company.

 

“Absolute Rate Bid” has the meaning set
forth in Section 2.03(b).

 

“Administrative Agent” means JPMorgan Chase
Bank, in its capacity as administrative agent for the Lenders hereunder or any
successor administrative agent.

 

“Administrative Agent’s Office” means the
Administrative Agent’s address and account as set forth on Schedule 10.02,
or such other address or account for all or any type of Loans, as the
Administrative Agent hereafter may designate by written notice to the Credit
Parties and the Lenders.

 

“Administrative Agent—Related Persons”
means the Administrative Agent (including any successor agent), together with
their respective Affiliates, and the officers, directors, employees, agents and
attorneys-in-fact of such Persons and Affiliates.

 

“Affiliate” means, as to any Person, any
other Person which, directly, or indirectly through one or more intermediaries,
is in control of, is controlled by, or is under common control with, such
Person.  A Person shall be deemed to
control another Person if the controlling Person possesses, directly or
indirectly through one or more intermediaries, the power to direct or cause the
direction of the management and policies of the other Person, whether through
the ownership of voting securities, the ability to exercise voting power, by
contract or otherwise.  In no event shall
the Lender be deemed an “Affiliate” of any Credit Party or of any Subsidiary of
any Credit Party.

 

“Agreement” means this Amended and Restated
Credit Agreement, as amended, supplemented, modified, restated or extended from
time to time in accordance with the terms hereof.

 

“Applicable Amount” means, (a) for any
Pricing Period with respect to any Dollar LIBOR Loan or any Foreign Currency
Loan, the per annum amounts set forth below (i) under “Applicable Margin
Facilities Usage £ 50%” if the
Facilities Usage is equal to or below 50%; or (ii) under “Applicable Margin
Facilities Usage > 50%” if the Facilities Usage exceeds 50%; in each case
opposite the Pricing Level in effect from time to time (it being understood
that the Applicable Amount for any Dollar LIBOR Loan or Foreign Currency Loan
may vary during an Interest Period  if
there is a change in Pricing Level at any time during such Interest Period due
to a change in the Pricing Rating); and (b) with respect to the Facility
Fee, the per annum amount set forth below under “Facility Fee Rate” opposite
the Pricing Level in effect from time to time; in each case in basis points per
annum:

 

2

 

	
  Pricing

  Level

  	
   

  	
  Applicable
  Margin

  Facilities Usage £ 50%

  	
   

  	
  Applicable
  Margin

  Facilities Usage > 50%

  	
   

  	
  Facility
  Fee

  Rate

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  28.5

  	
   

  	
   

  	
  33.5

  	
   

  	
   

  	
  9.0

  	
   

  	
   

  
	
  2

  	
   

  	
  31.5

  	
   

  	
   

  	
  39.0

  	
   

  	
   

  	
  11.0

  	
   

  	
   

  
	
  3

  	
   

  	
  49.0

  	
   

  	
   

  	
  59.0

  	
   

  	
   

  	
  13.5

  	
   

  	
   

  
	
  4

  	
   

  	
  70.0

  	
   

  	
   

  	
  82.5

  	
   

  	
   

  	
  17.5

  	
   

  	
   

  
	
  5

  	
   

  	
  90.0

  	
   

  	
   

  	
  107.5

  	
   

  	
   

  	
  22.5

  	
   

  	
   

  

 

“Pricing Level” means, as of any date, the
pricing level set forth below opposite the most creditworthy applicable Pricing
Rating as in effect as of the first day of the Pricing Period in which such
date occurs;

 

	
   

  	
   

  	
   

  	
   

  	
  Pricing
  Rating

  	
   

  
	
  Pricing Level

  	
   

  	
   

  	
   

  	
  S&P

  	
   

  	
  Moody’s

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  GREATER THAN

  	
   

  	
  A-

  	
   

  	
  A3

  	
   

  
	
  2

  	
   

  	
  EQUAL TO

  	
   

  	
  A-

  	
   

  	
  A3

  	
   

  
	
  3

  	
   

  	
  EQUAL TO

  	
   

  	
  BBB+

  	
   

  	
  Baa1

  	
   

  
	
  4

  	
   

  	
  EQUAL TO

  	
   

  	
  BBB

  	
   

  	
  Baa2

  	
   

  
	
  5

  	
   

  	
  EQUAL TO OR LESS THAN

  	
   

  	
  BBB-

  	
   

  	
  Baa3

  	
   

  

 

provided,
however, that if there is no
Pricing Rating, the Applicable Amount means (a) for any Pricing Period
with respect to any Dollar LIBOR Loan or any Foreign Currency Loan, the per
annum amounts set forth below (i) under “Applicable Margin Facilities Usage £
50%” if the Facilities Usage is equal to or below 50%, or (ii) under
“Applicable Margin Facilities Usage > 50%” if the Facilities Usage exceeds
50%; in each case opposite the Alternative Pricing Level in effect from time to
time (it being understood that the Applicable Amount for any Dollar LIBOR Loan
or Foreign Currency Loan may vary during an Interest Period if there is a change
in the Alternative Pricing Level at any time during such Interest Period due to
a change in the Debt / EBITDA Ratio), and (b) with respect to the Facility
Fee, the per annum amount set forth below under “Facility Fee Rate” opposite
the Alternative Pricing Level in effect from time to time; provided, that if the Compliance
Certificate is not delivered by the date required by Section 6.02(a) at
the time when the Applicable Amount is determined without a Pricing Rating,
then, subject to other provisions of this Agreement, commencing on the date
such Compliance Certificate was required to be delivered until the date such
Compliance Certificate is delivered, the Applicable Amount set forth opposite
Alternative Pricing Level 4 shall apply; in each case in basis points per
annum:

 

	
  Alternative

  Pricing Level

  	
   

  	
  Applicable
  Margin

  Facilities Usage £ 50%

  	
   

  	
  Applicable
  Margin

  Facilities Usage > 50%

  	
   

  	
  Facility
  Fee Rate

  	
   

  
	
  1

  	
   

  	
  31.5

  	
   

  	
   

  	
  39.0

  	
   

  	
   

  	
  11.0

  	
   

  	
   

  
	
  2

  	
   

  	
  49.0

  	
   

  	
   

  	
  59.0

  	
   

  	
   

  	
  13.5

  	
   

  	
   

  
	
  3

  	
   

  	
  70.0

  	
   

  	
   

  	
  82.5

  	
   

  	
   

  	
  17.5

  	
   

  	
   

  
	
  4

  	
   

  	
  90.0

  	
   

  	
   

  	
  107.5

  	
   

  	
   

  	
  22.5

  	
   

  	
   

  

 

3

 

 “Alternative
Pricing Level” means, as of any date, the pricing level set forth
opposite the lowest Debt / EBITDA Ratio determined at the most recent
quarter-end prior to the first day of the Pricing Period in which such date
occurs:

 

	
  Alternative

  Pricing Level

  	
   

  	
  Debt / EBITDA Ratio

  	
   

  
	
  1

  	
   

  	
  LESS THAN 1.0

  	
   

  
	
  2

  	
   

  	
  EQUAL TO OR GREATER
  THAN 1.0 BUT LESS THAN 1.5

  	
   

  
	
  3

  	
   

  	
  EQUAL TO OR GREATER
  THAN 1.5 BUT LESS THAN 2.0

  	
   

  
	
  4

  	
   

  	
  EQUAL TO OR GREATER
  THAN 2.0 BUT LESS THAN 3.0

  	
   

  

 

“Debt / EBITDA Ratio” means, at any date of
determination, the ratio of Consolidated Funded Debt of the Company, as of such
date, to EBITDA at the most recent quarter-end for the preceding four fiscal
quarters.

 

“Pricing Level Change Date” means (a) with
respect to any change in the Pricing Rating which results in a change in the
Applicable Amount, the date of the public announcement of the change in such
Pricing Rating or (b) with respect to any change in the Debt / EBITDA
Ratio which results in a change in the Applicable Amount, the date upon which
the Company is required by Section 6.02(a) to deliver such Compliance
Certificate.

 

“Pricing Period” means (a) the period
commencing on the Closing Date and ending on the first Pricing Level Change Date
to occur thereafter and (b) each subsequent period commencing on each
Pricing Level Change Date and ending the day prior to the next Pricing Level
Change Date.

 

“Pricing Rating” means, as of any date of
determination, the rating, if any, of the Company’s senior unsecured debt, as
determined by either Standard & Poor’s Corporation (“S&P”) or Moody’s Investors Service,
Inc.  (“Moody’s”);
provided,
that if the Company’s senior unsecured debt is rated by both of such rating
agencies, then the more creditworthy of such credit ratings shall apply unless
there is a split rating of two grades or more, in which case the rating one
grade above the lower rating shall apply.

 

“Applicable Taxes” means any and all
present or future taxes (including documentary taxes), levies, assessments,
imposts, duties, deductions, fees, withholdings or similar charges, and all
liabilities with respect thereto imposed by a Governmental Authority relating
to any Loan Document, including any liabilities imposed on amounts paid by any
Credit Party to indemnify or reimburse any Person for such amounts, excluding
Lender Taxes.

 

4

 

 “Attorney
Costs” means and includes all reasonable fees and disbursements of
any law firm or other external counsel, the allocated cost of internal legal
services and all disbursements of internal counsel.

 

 “Availability
Period” means the period commencing on the Closing Date and ending,
subject to Article VIII, on the day before the Maturity Date.

 

“Base Rate” means the higher of:
(a) the Federal Funds Rate plus 0.50%, or (b) the rate of interest
publicly announced from time to time by JPMorgan Chase Bank as its reference
rate, which shall not necessarily be its lowest or best rate charged to any of
its customers.

 

“Base Rate Loan” means a Dollar Loan made
hereunder from any Lender’s Domestic Lending Office that bears interest at the
Base Rate.

 

“Borrower” means, in respect of any Dollar
Loan, the Company and, in respect of any Foreign Currency Loan, the Company or
the Foreign Borrower borrowing such Foreign Currency Loan under this Agreement.

 

“Borrowing” and “Borrow” each mean, a borrowing hereunder consisting of Loans
of the same type made on the same day and, other than in the case of Base Rate
Loans, having the same Interest Period.

 

“British Pounds Sterling” means lawful
money of the United Kingdom.

 

“Business Day” means any day other than a
Saturday, Sunday or other day on which commercial banks in New York City are
authorized or required by law to close, provided that when used in connection
with any Borrowing, Continuation, Conversion to or from, prepayment,
assignment, participation or determination of any interest rate, margin, fee,
Interest Period or interest or principal payment date or similar determination
in respect of any (a) Dollar LIBOR Loan or Foreign Currency Loan in British
Pounds Sterling, “Business Day”
shall exclude any such day on which commercial banks are not open for dealings
in deposits in the London interbank market, (b) Foreign Currency Loan in Euros,
“Business Day” shall also exclude
any day on which the TARGET payment system is not open for the settlement of
payment in Euro and (c) Foreign Currency Loan in any other Foreign Currency, “Business Day” shall also exclude any day
on which banks are not open for dealings in deposits in such Foreign Currency
in the Principal Financial Center for such Foreign Currency.

 

“Capital Adequacy Regulation” means any
guideline, request or directive of any central bank or other Governmental
Authority, or any other law (provided that if such guideline, request
or directive does not have the force of law, compliance therewith is customary
for banks regulated in a manner similar to such Lender), rule or regulation,
whether or not having the force of law, in each case, regarding capital
adequacy of such Lender or of any corporation controlling such Lender.

 

5

 

“Capital Lease” has the meaning specified
in the definition of Capital Lease Obligations.

 

“Capital Lease Obligations” means all
monetary obligations of any Person under any leasing or similar arrangement
which, in accordance with GAAP, is classified as a capital lease (“Capital Lease”).

 

“Canadian Dollars” means lawful money of
Canada.

 

“CERCLA” has the meaning specified in the
definition of “Environmental Laws.”

 

“CLO” means any entity (whether a
corporation, partnership, trust or otherwise) that is engaged in making,
purchasing, holding or otherwise investing in bank loans and similar extensions
of credit in the ordinary course of its business and is administered or managed
by a Lender or an Affiliate of a Lender.

 

“Closing Date” means July 31, 2002.

 

“Code” means the Internal Revenue Code of
1986, as amended or replaced and as in effect from time to time.

 

“Commitment” means, for each Lender, the
amount set forth as such opposite such Lender’s name on Schedule 2.01
under Commitment, as such amount may be reduced pursuant to the terms of this
Agreement (collectively, the combined “Commitments”)
..  The respective Pro Rata Shares of the
Lenders in the combined Commitments are set forth in Schedule 2.01.

 

“Committed Loan” means a Dollar Loan or a
Foreign Currency Loan.

 

“Committed Loan Note” means the promissory
note made by any Borrower in favor of a Lender evidencing such Lender’s
Committed Loans, in the case of Dollar Loans, substantially in the form of
Exhibit C and, in the case of Foreign Currency Loans, in such form as the
Administrative Agent may require in light of commercial banking practices in
the jurisdiction of the applicable Foreign Borrower, if any, either as
originally executed or as the same may from time to time be supplemented,
modified, amended, renewed, extended or supplanted (collectively, the “Committed Loan Notes”).

 

“Company” has the meaning specified in the
preamble.

 

“Competitive Bid” means (a) a written bid
delivered to the Administrative Agent to provide Competitive Loans,
substantially in the form of Exhibit D-2, duly completed and signed by a
Lender, or (b) a telephonic bid made by a Lender to the Administrative Agent to
provide Competitive Loans including the substance of Exhibit D-2, promptly
confirmed by a written Competitive Bid.

 

6

 

“Competitive Bid Maximum” means the maximum
amount(s) a Lender is willing to bid under a Competitive Bid for all
Competitive Loans included therein and/or individual Competitive Loans included
therein.

 

“Competitive Bid Request” means (a) a
written request delivered to the Administrative Agent requesting Competitive
Bids, substantially in the form of Exhibit D-l, duly completed and signed by a
Responsible Officer, or (b) a telephonic request made by a Responsible Officer
to the Administrative Agent requesting Competitive Bids including the substance
of Exhibit D-1, promptly confirmed by a written Competitive Bid Request.

 

“Competitive Loan” means a Loan made by any
Lender to the Company under the combined Commitments not determined by that
Lender’s Pro Rata Share pursuant to Section 2.03, bearing interest at an
Absolute Rate or on the basis of a margin above or below Adjusted Dollar
LIBOR.  All Competitive Loans will be
made in Dollars.

 

“Competitive Loan Minimum Amount” means,
with respect to each of the following actions with respect to each type of
Competitive Loan, the following amounts set forth opposite such action under
such type of Competitive Loan (a reference to “Competitive
Loan Minimum Amount” shall also be deemed a reference to the
multiples in excess thereof set forth on the last line below):

 

	
  Type of Action

  	
   

  	
  Absolute
  Rate

  Minimum

  	
   

  	
  LIBOR

  Minimum

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Competitive
  Bid Requests

  	
   

  	
  $

  	
  5,000,000

  	
   

  	
  $

  	
  5,000,000

  	
   

  
	
  Competitive
  Bids

  	
   

  	
  $

  	
  1,000,000

  	
   

  	
  $

  	
  5,000,000

  	
   

  
	
  Competitive
  Loans

  	
   

  	
  $

  	
  1,000,000

  	
   

  	
  $

  	
  5,000,000

  	
   

  
	
  Multiples
  in excess of above amounts

  	
   

  	
  $

  	
  500,000

  	
   

  	
  $

  	
  1,000,000

  	
   

  

 

“Competitive Loan Note” means the
promissory note made by the Company in favor of a Lender evidencing the
Competitive Loans made by that Lender, substantially in the form of Exhibit
D-3, either as originally executed or as the same may from time to time be
supplemented, modified, amended, renewed, extended or supplanted (collectively,
the “Competitive Loan Notes”).

 

“Competitive Loan Requisite Time” means,
with respect to any of the actions listed below, the time set forth opposite
such action on or prior to the date set forth below (all times are New York
time):

 

	
   

  	
   

  	
   

  	
   

  	
  Date

  	
   

  
	
  Action

  	
   

  	
  Time

  	
   

  	
  Absolute Rate Loan

  	
   

  	
  Dollar LIBOR Loan

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Competitive
  Bid Request

  	
   

  	
  11:00 a.m.

  	
   

  	
  1 Business Day prior to
  Credit Date

  	
   

  	
  4 Business Days prior to
  Credit Date

  	
   

  
	
  Competitive
  Bid by Lenders other than Administrative Agent

  	
   

  	
  11:00 a.m.

  	
   

  	
  Credit Date

  	
   

  	
  3 Business Days prior
  to Credit Date

  	
   

  
	
  Competitive
  Bid by Administrative Agent as Lender under this Agreement

  	
   

  	
  10:45 a.m.

  	
   

  	
  Credit Date

  	
   

  	
  3 Business Days prior
  to Credit Date

  	
   

  
	
  Company’s
  Acceptance

  	
   

  	
  11:30 a.m.

  	
   

  	
  Credit Date

  	
   

  	
  3 Business Days prior
  to Credit Date

  	
   

  

 

7

 

“Compliance Certificate” means a
certificate substantially in the form of Exhibit B, properly completed and
signed by a Responsible Officer.

 

“Consolidated Funded Debt” means, for any
period, for the Company and its subsidiaries on a consolidated basis in
accordance with GAAP, an amount equal to the sum of, without duplication, (a)
all indebtedness of the Company and its consolidated subsidiaries for borrowed
money plus (b) all Indebtedness of the Company and its consolidated
subsidiaries incurred in connection with the acquisition of assets or property
plus (c) the principal portion of all Capital Lease Obligations of the Company
and its consolidated subsidiaries plus (d) all obligations of the Company and
its consolidated subsidiaries under Permitted Accounts Receivable Financings
plus (e) indebtedness of the Company and its consolidated subsidiaries
attributable to Synthetic Leases related to tangible Property plus (f) Deferred
Purchase Price Obligations of the Company and its consolidated subsidiaries
plus (g) all Guaranty Obligations of the Company and its consolidated
subsidiaries with respect to indebtedness for borrowed money of any other
Person; in each of cases (a) through (g) as of the last day of such period.

 

“Continuation” and “Continue” each mean, with respect to any
Loan other than a Base Rate Loan, the continuation of such Loan as the same
type of Loan in the same principal amount, but with a new Interest Period and
an interest rate determined as of the first day of such new Interest
Period.  Continuations must occur on the
last day of the Interest Period for such Loan.

 

“Contractual Obligations” means, as to any
Person, any provision of any security issued by such Person or of any
agreement, undertaking, contract, indenture, mortgage, deed of trust or other
instrument, document or agreement to which such Person is a party or by which
it or any of its Property is bound.

 

“Controlled Group” means the Company and
all Persons (whether or not incorporated) under common control or treated as a
single employer with the Company pursuant to Section 414(b) or (c) of
the Code.

 

“Conversion” and “Convert” each mean, with respect to any
Committed Loan, the conversion of one type of Loan into another type of
Loan.  With respect to Loans other than
Base Rate Loans, Conversions other than Conversion upon a Default or Event of
Default must occur on the last day of the Interest Period for such Loan.

 

“Credit Date” means (i) with respect to any
Loan, the Business Day set forth in the relevant Request for Extension of
Credit or Competitive Bid Request, as applicable,

 

8

 

as the date upon which
the applicable Borrower desires to borrow such Loan, and (ii) with respect to
any Letter of Credit, the Business day set forth in the relevant LC Request as
the date upon which the Company desires the Issuing Bank to issue such Letter
of Credit.

 

“Credit
Parties” means the Company and the Foreign Borrowers,
collectively.

 

“Default” means any event or circumstance
which, with the giving of notice, the lapse of time, or both, would (if not
cured or otherwise remedied during such time) constitute an Event of Default.

 

“Default Rate” means an interest rate equal
to the underlying interest rate applicable to such type of Loan plus the
Applicable Amount, if any, otherwise applicable plus 2%, to the fullest extent
permitted by any Requirement of Law.

 

“Deferred Purchase Price Obligations”
means, as applied to any Person, all monetary obligations to make scheduled
payments in excess of $10,000,000 with respect to the deferred purchase price
of Property or services (other than trade accounts payable in the Ordinary
Course of Business).

 

“Disposition” means the voluntary sale,
transfer, or other disposition (but not including a pledge or hypothecation
except as set forth below in this definition) of any asset of the Company or any
of its Subsidiaries, including without limitation any sale, assignment, pledge,
hypothecation, transfer or other disposal with or without recourse of any notes
or accounts receivable or any rights and claims associated therewith, other
than a Permitted Disposition.

 

“Dollar Letter of Credit” means a
Dollar-denominated letter of credit of an Issuing Bank issued pursuant to this
Agreement or issued pursuant to any other arrangement and incorporated as a
“Letter of Credit” under this Agreement pursuant to Section 2.11(b).

 

“Dollar LIBOR” has the meaning specified in
the definition of “IBOR.”

 

“Dollar LIBOR Loan”
means a Loan made hereunder to the Company that bears interest at a rate
determined by reference to Adjusted Dollar LIBOR.

 

“Dollar Loan” means a revolving Loan made
to the Company by any Lender in accordance with its Pro Rata Share under that
Lender’s Commitment pursuant to Section 2.01(a), and includes Dollar LIBOR
Loans and Base Rate Loans.  All Dollar Loans
will be made in Dollars.

 

“Dollars” and the sign “$” each mean lawful money of the United
States of America.

 

9

 

“Domestic Lending Office” means, with
respect to each Lender, its office, branch or affiliate specified as its
domestic lending office by notice to the Administrative Agent.

 

“EBITDA” means, for any period, for any
Person, an amount equal to the Net Income of such Person and its consolidated
subsidiaries for that period, plus (without duplication and to the extent
incorporated in the calculation of Net Income) (a) Interest Expense of
such Person and its consolidated subsidiaries for that period, plus
(b) the aggregate amount of consolidated federal and state taxes on or
measured by income of such Person and its consolidated subsidiaries for that
period (whether or not payable during that period), plus (c) consolidated
depreciation, amortization and all other non-cash items (including non-cash
compensation and impairment charges) of such Person and its consolidated
subsidiaries for that period, minus (d) any gains attributable to the sale
of assets plus (e) any losses attributable to the sale of assets, and minus
(f) any items of income or loss in respect of (1) equity in the income or
loss of unconsolidated affiliates or (2) minority interests in the income or
loss of consolidated subsidiaries, in each case as determined in accordance
with GAAP; it being understood that any items of loss or expense would be added
to, and any items of gain or income would be deducted from Net Income for the purpose
of determining EBITDA under this paragraph.

 

“Effective Date” means the date on which
all conditions precedent set forth in Section 4.01 are satisfied or waived
by the Lenders and the Administrative Agent.

 

“Eligible Assignee” means (i) a
financial institution organized under the laws of the United States, or any
state thereof, and having total assets of at least $1,000,000,000; (ii) a
commercial bank organized under the laws of any other country which is a member
of the Organization for Economic Cooperation and Development (the “OECD”), or a political subdivision of any
such country, and having total assets of at least $1,000,000,000, provided
that such bank is acting through a branch or agency located in the United
States; (iii) a Person that is primarily engaged in the business of
commercial banking and that is (a) a Subsidiary of a Lender, (b) a
Subsidiary of a Person of which a Lender is a Subsidiary, or (c) a Person
of which a Lender is a Subsidiary; (iv) a CLO, or (v) another Lender.  For the purposes of determining if a
proposed assignee meets the foregoing requirements, each party hereto shall be
entitled to rely on a certificate from such proposed assignee certifying that
it meets such requirements unless such party has reason to believe that such
certification is inaccurate.

 

 “Environmental
Claims” means all claims, however asserted, by any Governmental
Authority or other Person alleging liability or responsibility for violation of
any Environmental Law or for release or injury to the environment or threat to
public health, personal injury (including sickness, disease or death), Property
damage, natural resources damage, or otherwise alleging liability or
responsibility for damages (punitive or otherwise), cleanup, removal, remedial
or response costs, restitution, civil or criminal penalties, injunctive relief,
or other type of relief, resulting from or based upon (a) the presence,
placement, discharge, emission or release (including intentional and
unintentional, negligent and non-negligent, sudden or non-sudden, accidental or
non-accidental

 

10

 

placement, spills, leaks,
discharges, emissions or releases) of any Hazardous Material at, in, or from
Property, whether or not owned by the Company, or (b) any other
circumstances forming the basis of any violation, or alleged violation, of any
Environmental Law.

 

“Environmental Laws” means all federal,
state or local laws, statutes, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices, binding agreements, licenses,
authorizations and permits issued, promulgated or entered into by any
Governmental Authority, in each case relating to environmental, health, safety
and land use matters (excluding matters relating to zoning and building
permits); including, without limitation, the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 (“CERCLA”), the Clean Air Act, the Federal Water Pollution
Control Act of 1972, the Solid Waste Disposal Act, the Federal Resource
Conservation and Recovery Act, the Toxic Substances Control Act, the Emergency
Planning and Community Right-to-Know Act, the California Hazardous Waste
Control Law, the California Solid Waste Management, Resource, Recovery and
Recycling Act, the California Water Code and the California Health and Safety
Code.

 

“Equivalent Amount” means at any time of
determination, with respect to any amount in any currency denominated in a
Foreign Currency, the net amount of Dollars into which such amount of Foreign
Currency would be converted at such time at applicable exchange rates, as
determined by the Administrative Agent, which determination will be final in
the absence of manifest error.

 

“ERISA” means the Employee Retirement
Income Security Act of 1974, as amended from time to time.

 

“ERISA Affiliate” means any trade or
business (whether or not incorporated) under common control with the Company or
any Subsidiary of the Company within the meaning of Section 414(b), 414(c)
or 414(m) of the Code.

 

“ERISA Event” means (a) a Reportable
Event with respect to a Qualified Plan or a Multiemployer Plan which is a
Materially Underfunded Plan; (b) a withdrawal by any member of the
Controlled Group from a Qualified Plan which is a Materially Underfunded Plan subject
to Section 4063 of ERISA during a plan year in which it was a substantial
employer (as defined in Section 4001(a)(2) of ERISA); (c) a complete
or partial withdrawal by any member of the Controlled Group from a
Multiemployer Plan which is a Materially Underfunded Plan; (d) the filing
of a notice of intent to terminate, the treatment of a plan amendment as a
termination under Section 4041 or 4041A of ERISA or the commencement of
proceedings by the PBGC to terminate a Qualified Plan or Multiemployer Plan
which is a Materially Underfunded Plan subject to Title IV of ERISA; (e) a
failure to make required contributions to a Qualified Plan or Multiemployer
Plan which is a Materially Underfunded Plan; (f) an event or condition
which might reasonably be expected to constitute grounds under
Section 4042 of ERISA for the termination of, or the appointment of a
trustee to administer, any Qualified Plan or

 

11

 

Multiemployer Plan which
is a Materially Underfunded Plan; (g) the imposition of any liability
under Title IV of ERISA, other than PBGC premiums due but not delinquent under
Section 4007 of ERISA, upon any member of the Controlled Group with
respect to a Materially Underfunded Plan; (h) an application for a funding
waiver or an extension of any amortization period pursuant to Section 412
of the Code with respect to any Qualified Plan which is a Materially
Underfunded Plan; (i) any member of the Controlled Group engages in or
otherwise becomes liable for a non-exempt prohibited transaction which would
have a Material Adverse Effect; or (j) a violation of the applicable
requirements of Section 404 or 405 of ERISA or the exclusive benefit rule
under Section 401(a) of the Code by any fiduciary with respect to any
Qualified Plan for which the Company or any of its Subsidiaries may be directly
or indirectly liable which would have a Material Adverse Effect.

 

“Euro” means lawful money of Austria,
Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the
Netherlands, Portugal and Spain, and such other countries as may hereafter join
the Euro Zone.

 

“Eurocurrency Lending Office” means, with
respect to each Lender, its office, branch or affiliate specified as its
Eurocurrency lending office by notice to the Administrative Agent.

 

“Euromarket Funded” means, with respect to
a Loan, that such Loan shall bear interest by reference to Dollar LIBOR or
London IBOR (both as defined in the definition of “IBOR”) plus the Applicable
Amount, and that such Loan shall be made from the relevant Eurocurrency Lending
Office of the Lender making such Loan.

 

“Event of Default” has the meaning provided
in Section 8.01.

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder.

 

 “Extension
of Credit” means the Borrowing, Conversion or Continuation of any
Loans (collectively, the “Extensions of Credit”).

 

“Facility Fee” means the fee payable by the
Company to the Administrative Agent pursuant to Section 2.07(a).

 

“Facilities Usage” means, as of any date,
the amount expressed as a percentage calculated as (A) the sum of (i) all Loans
outstanding and the amount of the LC Exposure under the 2004 Agreement and (ii)
all Loans outstanding and the amount of the LC Exposure under this Agreement
divided by (B) the sum of (i) the Lenders’ Commitments under this Agreement and
(ii) the Lenders’ Commitments under the 2004 Agreement; provided that for the purposes of
subclauses (A)(i) and (B)(ii) of this paragraph only, the terms “Lenders”, “Loans”,
“LC Exposure”, and “Commitments” shall have the meanings as defined in the 2004
Agreement.

 

12

 

“Federal Funds Rate” means the weighted
average of the rates on overnight Federal funds transactions with members of
the Federal Reserve System arranged by Federal funds brokers, as published for
such day of determination (or if such day of determination is not a Business
Day, for the next preceding Business Day) by the Federal Reserve Bank of New
York, or, if such rate is not so published for any day which is a Business Day,
the average of the quotations for such day on such transaction received by the
Administrative Agent from three Federal funds brokers of recognized standing
selected by it.

 

“Federal Reserve Board” means the U.S.
Board of Governors of the Federal Reserve System, or any successor thereto.

 

“Fiscal Quarter” means, as applicable, the
fiscal quarter of the Company and its Subsidiaries as reflected in the
Company’s consolidated financial statements.

 

“Fiscal Year” means, as applicable, the
fiscal year of the Company and its Subsidiaries as reflected in the Company’s
consolidated financial statements.

 

“Foreign Borrower” means any Person that
becomes a Foreign Borrower hereunder in accordance with Section 2.01(d),
but only to the extent Foreign Borrower Obligations of such Person are
outstanding.

 

“Foreign Borrower Joinder Agreement” means
an agreement in the form attached as Exhibit J.

 

“Foreign Borrower Obligations” means all
Obligations of Foreign Borrowers.

 

“Foreign Currency” means British Pounds
Sterling, Canadian Dollars, Japanese Yen and Euro or such other currency as
agreed to by the Administrative Agent and all Lenders.  Each currency must be one (a) that is
readily available to the Lenders and freely transferable and convertible into
Dollars, and (b) in which deposits are generally available to the Lenders in
the London interbank market.

 

“Foreign Currency Letter of Credit” means a
letter of credit of an Issuing Bank denominated in a Foreign Currency and
issued pursuant to this Agreement or issued pursuant to any other arrangement
and incorporated as a “Letter of Credit” under this Agreement pursuant to
Section 2.11(b).

 

“Foreign Currency Limit” means, at any
time, the lesser of (a) $200,000,000 and (b) 100% of the combined Commitments
in effect at such time.

 

“Foreign Currency Loan” means a revolving
Loan made hereunder to the Company or a Foreign Borrower in a Foreign Currency
and bearing interest at Adjusted IBOR for such Foreign Currency.

 

13

 

“GAAP” means generally accepted accounting
principles in the United States of America set forth from time to time in the
opinions and pronouncements of the U.S. Accounting Principles Board and the American
Institute of Certified Public Accountants and statements and pronouncements of
the U.S. Financial Accounting Standards Board (or agencies with similar
functions of comparable stature and authority within the accounting
profession), or in such other statements by such other entity as may be in
general use by significant segments of the U.S. accounting profession, which
are applicable to the circumstances as of the date of determination.

 

“Governmental Authority” means (a) any
international, foreign, federal, state, county or municipal government, or
political subdivision thereof, (b) any governmental agency, central bank
or comparable authority, authority, board, bureau, commission, department or
instrumentality, or (c) any court or administrative tribunal.

 

“Guaranty” means the guaranty, dated as of
July 31, 2002 and executed by the Company in the form attached as Exhibit
K.

 

“Guaranty Obligation” means, as applied to
any Person, any direct or indirect liability of that Person with respect to any
Indebtedness, lease, letter of credit, surety bond, bankers’ acceptance or
other obligation (the “primary obligations”) of another Person (the “primary
obligor”), including any obligation of that Person, whether or not contingent,
(a) to purchase, repurchase or otherwise acquire such primary obligations
or any Property constituting direct or indirect security therefor, or
(b) to advance or provide funds (i) for the payment or discharge of
any such primary obligation, or (ii) to maintain working capital or equity
capital of the primary obligor or otherwise to maintain the net worth or
solvency or any balance sheet item, level of income or financial condition of
the primary obligor, or (c) to purchase Property, securities or services
primarily for the purpose of assuring the owner of any such primary obligation
of the ability of the primary obligor to make payment of such primary
obligation, or (d) otherwise to assure or hold harmless the holder of any
such primary obligation against loss in respect thereof.  The amount of any Guaranty Obligation shall
be deemed equal to the stated or determinable amount of the primary obligation
in respect of which such Guaranty Obligation is made or, if not stated or if
indeterminable, the maximum reasonably anticipated liability in respect
thereof.

 

“Hazardous Materials” means all those
substances which are regulated by, or which may form the basis of liability
under, any Environmental Law, including all substances identified under any
Environmental Law as a pollutant, contaminant, hazardous waste, hazardous
constituent, special waste, hazardous substance, hazardous material, or toxic
substance, or petroleum or petroleum derived substance or waste.

 

“Hedging Agreement” means any agreement
with respect to any swap, forward, future or derivative transaction or option
or similar agreement involving, or settled by reference to, one or more rates,
currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or 

 

14

 

pricing risk or value or
any similar transaction or any combination of these transactions; provided that
no phantom stock or similar plan providing for payments only on account of
services provided by current or former directors, officers, employees or
consultants of the Company or its Subsidiaries shall be a Hedging Agreement;
provided further that no contingent purchase price, earn-out, royalty or
similar payment obligation relating to any acquisition or divestiture of a
Person by the Company or its Subsidiaries or contract for intellectual property
or other goods and services supplied or received by the Company or its
Subsidiaries shall be a Hedging Agreement.

 

“IBOR” shall mean, with respect to any
Interest Period for a Dollar LIBOR Loan or Foreign Currency Loan, the rate per
annum determined by the Administrative Agent as follows:

 

(a)                                  in
the case of a Dollar LIBOR Loan, the rate (“Dollar
LIBOR”) appearing on Page 3750
of the Dow Jones Market Service (or on any successor or substitute page of such
Service, or any successor to or substitute for such Service, providing rate
quotations comparable to those currently provided on such page of such Service,
as determined by the Administrative Agent from time to time for purposes of
providing quotations of interest rates applicable to deposits in the London
interbank market) at approximately 11:00 a.m., London time, two Business Days
prior to the commencement of such Interest Period, as the rate for Dollar
deposits with a maturity comparable to such Interest Period.  In the event that such rate is not available
at such time for any reason, then “IBOR”
and “Dollar LIBOR” with respect
to such Dollar LIBOR Loan for such Interest Period shall be the rate (rounded
upwards, if necessary, to the next 1/16 of 1%) at which Dollar deposits of
$5,000,000 and for a maturity comparable to such Interest Period are offered by
the principal London office of the Administrative Agent in immediately
available funds in the London interbank market at approximately 11:00 a.m.,
London time, two Business Days prior to the commencement of such Interest
Period; or

 

(b)                                 in
the case of a Euromarket Funded Foreign Currency Loan (other than Loans in
British Pounds Sterling), the rate (“London
IBOR”) appearing on Page 3750
of the Dow Jones Market Service (or on any successor or substitute page of such
Service, or any successor to or substitute for such Service, providing rate
quotations comparable to those currently provided on such page of such Service,
as determined by the Administrative Agent from time to time for purposes of
providing quotations of interest rates applicable to deposits in the London
interbank market) at approximately 11:00 A.M., London time, two Business Days prior to the
commencement of such Interest Period, as the rate for deposits in such Foreign
Currency with a maturity comparable to such Interest Period.  In
the event that such rate is not available at such time for any reason, “IBOR” and “London IBOR” with respect to such Euromarket Funded Foreign
Currency Loan for such Interest Period shall be the rate at which deposits in
such Foreign Currency in an amount substantially equal to the principal amount
of such Foreign Currency Loan and for a maturity comparable to such Interest
Period are offered by the principal London office of the Administrative Agent
in immediately

 

15

 

available funds in the London interbank market at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period; or

 

(c)                                  in
the case of a Euromarket Funded Foreign Currency Loan in British Pounds
Sterling or a Locally Funded Foreign Currency Loan, the rate (“Local Market IBOR”) at which deposits in
such Foreign Currency in an amount substantially equal to the principal amount
of such Foreign Currency Loan and for a maturity comparable to such Interest
Period are offered by the principal office of the Administrative Agent in the
interbank deposit market in the Principal Financial Center of such Foreign
Currency in immediately available funds at approximately 11:00 a.m., local
time, two Business Days prior to the commencement of such Interest Period.

 

“IBOR Loans” means Dollar LIBOR Loans and
Foreign Currency Loans.

 

“Indebtedness” of any Person means, without
duplication, (a) all indebtedness for borrowed money; (b) all obligations
issued, undertaken or assumed as the deferred purchase price of Property or
services (other than trade payables entered into in the ordinary course of
business pursuant to ordinary terms); (c) all matured or drawn and
unreimbursed reimbursement obligations with respect to surety bonds, letters of
credit, bankers’ acceptances and similar instruments (in each case, to the
extent non-contingent); (d) all obligations evidenced by notes, bonds,
debentures or similar instruments, including obligations so evidenced incurred
in connection with the acquisition of Property, assets or businesses;
(e) all indebtedness created or arising under any conditional sale or
other title retention agreement, in either case with respect to Property
acquired by the Person (even though the rights and remedies of the seller or
bank under such agreement in the event of default are limited to repossession
or sale of such Property); (f) all Capital Lease Obligations; (g) all
indebtedness referred to in clauses (a) through (f) above secured by (or
for which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any Lien upon or in Property (including accounts
and contracts rights) owned by such Person, even though such Person has not
assumed or become liable for the payment of such Indebtedness; and (h) all
Guaranty Obligations in respect of indebtedness or obligations of others of the
kinds referred to in clauses (a) through (f) above.  Indebtedness shall not include life insurance policy loans to
officers, directors and employees of such Person, to the extent such loans are
secured by the surrender value of such life insurance policy.

 

“Information Memorandum” means the
Confidential Information Memorandum dated July 2004 relating to the
Company, the 2004 Agreement and the Transactions.

 

 “Insolvency
Proceeding” means (a) any case, action or proceeding before any
court or other Governmental Authority relating to bankruptcy, reorganization,
insolvency, liquidation, receivership, dissolution, winding-up or relief of
debtors, or (b) any general assignment for the benefit of creditors,
composition, marshalling of assets for creditors or other, similar arrangement
in respect of its creditors generally or any substantial portion

 

16

 

of its creditors; in the
case of clause (a) and (b) undertaken under U.S. Federal, State or foreign law,
including the Bankruptcy Code.

 

“Interest Coverage Ratio” means, for the
four consecutive financial quarters immediately preceding the determination,
the ratio of (i) EBITDA to (ii) Interest Expense.

 

“Interest Expense” means, for any period,
for any Person, the sum, without duplication, of total consolidated interest
expense (including that portion attributable to Capitalized Leases in
conformity with GAAP) of such Person and its consolidated subsidiaries.

 

“Interest Payment Date” means,
(a) with respect to any Committed Loan that is a IBOR Loan, (i) the
last day of each Interest Period applicable to, or the maturity of, such Loan; provided,
however,
that if any Interest Period for a IBOR Loan exceeds three months, interest
shall also be paid on the date which falls, as applicable, three, six, or nine
months after the beginning of such Interest Period; (ii) any date that
such Loan is prepaid in whole or in part, and (iii) the Maturity Date, and
(b) with respect to any Base Rate Loan, the last Business Day of each
calendar quarter and the Maturity Date.

 

“Interest Period” means, as to any
Committed Loan other than a Base Rate Loan, the period commencing on the date
specified by the applicable Credit Party in its Request for Extension of Credit
and ending one, two, three or six months (or, in the case of a Dollar LIBOR
Loan, if consented to by all Lenders, nine or 12 months) thereafter, provided
that:

 

(a)                                  if
any Interest Period would otherwise end on a day which is not a Business Day,
that Interest Period shall be extended to the next succeeding Business Day
unless the result of such extension would be to carry such Interest Period into
another calendar month, in which event such Interest Period shall end on the
immediately preceding Business Day;

 

(b)                                 any
Interest Period that begins on the last Business Day of a calendar month (or on
a day for which there is no numerically corresponding day in the calendar month
at the end of such Interest Period) shall end on the last Business Day of the
calendar month at the end of such Interest Period; and

 

(c)                                  No
Interest Period for any Loan shall extend beyond the Maturity Date.

 

“Issuing Bank”
means JPMorgan Chase Bank, in its capacity as the issuer of Letters of Credit
hereunder, and its successors in such capacity as provided in Section 2.11(l).  The Issuing Bank may arrange for one or more
Letters of Credit to be issued by its Affiliates, other Lenders or their
Affiliates, with the prior approval of the Administrative Agent and such
Lenders or Affiliates, in which case the term “Issuing

 

17

 

Bank” shall include any such
Lender or Affiliate with respect to Letters of Credit issued by it.

 

“Joinder Effective Date” has the meaning
specified in Section 4.03.

 

“LC Disbursement”
means a payment made by the Issuing Bank pursuant to a Letter of Credit.

 

“LC Exposure”
means, at any time, the sum of (a) the aggregate undrawn amount of all
outstanding Dollar Letters of Credit at such time, (b) the Equivalent Amount of
the aggregate undrawn amount of all outstanding Foreign Currency Letters of
Credit at such time, (c) the aggregate amount of all LC Disbursements with
respect to Dollar Letters of Credit that have not yet been reimbursed by or on
behalf of the Company at such time, and (d) the aggregate Equivalent Amount of
all LC Disbursement with respect to Foreign Currency Letters of Credit  that have not yet been reimbursed by or on
behalf of the Company at such time.  The
LC Exposure of any Lender at any time shall be its Pro Rata Share of the total
LC Exposure at such time.

 

“LC Overage”
means the amount, if any, by which the LC Exposure exceeds $150,000,000.

 

“LC Request” means a request by the Company
for a Letter of Credit pursuant to Section 2.11(b) in the form attached as
Exhibit E hereto.

 

“LC Requisite Time” means 12:00 noon, New York City
time, on the date that such LC Disbursement is made, if the Company shall have
received notice of such LC Disbursement prior to 10:00 a.m., New York City
time, on such date, or, if such notice has not been received by the Company
prior to such time on such date, then not later than 12:00 noon, New York City
time, on (i) the Business Day that the Company receives such notice, if such
notice is received prior to 10:00 a.m., New York City time, on the day of
receipt, or (ii) the Business Day immediately following the day that the
Company receives such notice, if such notice is not received prior to such time
on the day of receipt.

 

“Letter of Credit” means a Dollar Letter of
Credit or a Foreign Currency Letter of Credit.

 

“Lender” means each lender from time to
time party hereto.

 

“Lender Taxes” means, in the case of each
Lender, the Administrative Agent, each Eligible Assignee, and any Affiliate or
Lending Office thereof: (a) taxes imposed on or measured in whole or in
part by its overall net income, gross income or gross receipts or capital and
franchise taxes imposed on it, by (i) any jurisdiction (or political
subdivision thereof) in which it is organized or maintains its principal office
or Lending Office or (ii) any jurisdiction (or political subdivision
thereof) in which it is “doing

 

18

 

business” (unless it
would not be doing business in such jurisdiction (or political subdivision
thereof) absent the Transactions), (b) any withholding taxes or other
taxes based on gross income imposed by the United States of America (other than
withholding taxes and taxes based on gross income resulting from or
attributable to any change in any law, rule or regulation or any change in the
interpretation or administration of any law, rule or regulation by any
Governmental Authority in each case after the date hereof) or (c) any
withholding taxes or other taxes based on gross income imposed by the United
States of America for any period with respect to which it has failed to provide
the Company with the appropriate form or forms required by Section 10.20,
to the extent such forms are then required by any Requirement of Law.

 

“Lending Office” means, as to any Lender,
either its Domestic Lending Office, Eurocurrency Lending Office or its Local
Currency Lending Office, as the context may require.

 

“LIBOR Margin Bid” has the meaning set
forth in Section 2.03(b).

 

“Lien” means any mortgage, deed of trust,
pledge, hypothecation, assignment, lien (statutory or other) or other security
interest or encumbrance (including those created by, arising under or evidenced
by any conditional sale or other title retention agreement, the interest of a
lessor under a Capital Lease Obligation or the filing of any financing
statement naming the owner of the asset to which such lien relates as debtor,
under the UCC or any comparable law), but not including the interest of a
lessor under an Operating Lease.

 

“Loan” means any advance made or to be made
by any Lender to the Company as provided in Article II, and includes
Committed Loans and Competitive Loans.

 

“Loan Documents” means, collectively, this
Agreement, any Foreign Borrower Joinder Agreements, the Guaranty, the Notes,
any Letters of Credit and the related applications and agreements, any Request
for Extension of Credit, any Compliance Certificate and any other agreements of
any type or nature hereafter executed and delivered by the Company or any of
its Subsidiaries or Affiliates to the Administrative Agent or to any Lender in
any way relating to or in furtherance of this Agreement, in each case either as
originally executed or as the same may from time to time be supplemented,
modified, amended, restated, extended or supplanted.

 

“Local Currency Lending Office” means, with
respect to each Lender and each Foreign Currency, the office, branch or
affiliate of such Lender located in the country of the Principal Financial
Center for such Foreign Currency as it may hereafter designate as its Local
Currency Lending Office for such Foreign Currency by notice to the
Administrative Agent.

 

“Local Market IBOR” has the meaning
specified in the definition of “IBOR.”

 

19

 

“Locally Funded” means, with respect to a
Foreign Currency Loan, that such Loan shall bear interest by reference to Local
Market IBOR (as defined in the definition of “IBOR”) for the relevant Foreign
Currency plus the Applicable Amount, and that such Loan shall be made from the
relevant Local Currency Lending Office of the Lender making such Loan.

 

“London IBOR” has the meaning specified in
the definition of “IBOR.”

 

“Margin Stock” means “margin stock” as such
term is defined in Regulations T, U and X of the Federal Reserve Board.

 

“Material Adverse Effect” means a material
adverse effect on (a) the business, assets, operations and condition, financial
or otherwise, of the Company and the Subsidiaries taken as a whole, (b) the
ability of any Credit Party to perform its material obligations under this
Agreement, or (c) the legality, validity, binding effect or enforceability of
any Loan Document.

 

“Materially Underfunded Plan” means, at any
time, a Plan or Plans having aggregate Unfunded Pension Liabilities in excess
of $10,000,000.

 

“Maturity Date” means July 31, 2007.

 

“Minimum Amount” means, with respect to
each action described below, the following amount set forth opposite such
action (or, in respect of an action relating to a Foreign Currency Loan, an
amount of the applicable Foreign Currency (rounded up to the nearest 1,000
British Pounds Sterling, Euros or 100,000 Japanese Yen, as the case may be) the
Equivalent Amount of which is equal to the Dollar amount set forth below):

 

	
  Type
  of Action

  	
   

  	
  Minimum

  Amount

  	
   

  	
  Minimum Multiples

  in excess of

  Minimum Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Borrowing
  of, prepayment of or Conversion into, Base Rate Loans

  	
   

  	
  $

  	
  5,000,000

  	
   

  	
  $

  	
  500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Borrowing
  of, prepayment or Continuation of, or Conversion into, Dollar LIBOR Loans

  	
   

  	
  $

  	
  5,000,000

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Voluntary
  Reduction of Commitments

  	
   

  	
  $

  	
  5,000,000

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Borrowing
  of, prepayment or Continuation of Foreign Currency Loans

  	
   

  	
  $

  	
  5,000,000

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assignments

  	
   

  	
  $

  	
  5,000,000

  	
   

  	
  n/a

  	
   

  

 

20

 

“Multiemployer Plan” means a “multiemployer
plan” (within the meaning of Section 4001(a)(3) of ERISA) and to
which any member of the Controlled Group makes, is making, or is obligated to
make contributions or has made, or been obligated to make, contributions, but
does not include (i) Multiemployer Plans to which no member of the
Controlled Group had withdrawal liability and an obligation to contribute at
all times following the enactment of the Multiemployer Pension Plan Amendments
Act of 1980, and (ii) Multiemployer Plans as to which all members of the
Controlled Group have both completely withdrawn and paid the full amount of any
withdrawal liability.

 

“Net Income” means, with respect to any
fiscal period, for any Person the consolidated net income of such Person and
its consolidated subsidiaries, determined in accordance with GAAP.

 

“Notes” means, collectively, the Committed
Loan Notes and the Competitive Loan Notes.

 

“Notice of Assignment and Acceptance” means
a Notice of Assignment and Acceptance substantially in the form of
Exhibit G.

 

“Notice of Letter of Credit Withdrawal”
means a request by the Company for the withdrawal of a Letter of Credit
pursuant to Section 2.11(m) substantially in the form of Exhibit F.

 

“Notice of Lien” means any “notice of lien”
or similar document intended to be filed or recorded with any court, registry,
recorder’s office, central filing office or other Governmental Authority for
the purpose of evidencing, creating, perfecting or preserving the priority of a
Lien securing obligations owing to a Governmental Authority.

 

“Notice of Participation”
means a Notice of Participation substantially in the form of Exhibit I.

 

“Obligations” means all obligations of
every kind or nature of each Credit Party from time to time owed to the
Administrative Agent, any Lender, any Person entitled to indemnification, or
any one or more of them, under any one or more of the Loan Documents, whether
for principal, interest, fees, expenses, indemnification or otherwise, and
whether absolute or contingent, due or to become due, matured or unmatured,
liquidated or unliquidated, now existing or hereafter arising, pursuant to the
terms of any of the Loan Documents, and including interest that accrues after
the commencement of any Insolvency Proceeding.

 

“Operating Lease” means, as applied to any
Person, any lease of Property which is not a Capital Lease other than any such
lease under which that Person is the lessor.

 

21

 

“Ordinary Course Guaranty Obligations”
means any Guaranty Obligations of any Person consisting of obligations in
respect of surety bonds, letters of credit (other than letters of credit in
support of indebtedness for borrowed money of any Person), performance bonds,
leases, indemnities or similar obligations, in each case incurred in connection
with a transaction entered into in the Ordinary Course of Business of such Person.

 

“Ordinary Course of Business” means, in
respect of any transaction involving any Person, the ordinary course of such
Person’s business, as conducted by any such Person in accordance with past
practice.

 

“Organization Documents” means, for any
corporation, the certificate or articles of incorporation, the bylaws, any
certificate of determination or instrument relating to the rights of preferred
shareholders of such corporation, and all applicable resolutions of the board
of directors (or any committee thereof) of such corporation relating to the
foregoing or the organization of such corporation.

 

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

 

“Permitted Accounts Receivable Financing”
means a sale or discount of accounts receivable of any Person (a) that
does not involve the creation of a Lien or negative pledge on any accounts
receivable not so sold or discounted and (b) that does not involve in the
aggregate the sale or discount of accounts receivable having a book value
exceeding $100,000,000.

 

“Permitted Disposition” means a Disposition
of (a) inventory or other assets sold, leased or otherwise disposed of in
the Ordinary Course of Business of the Company or a Subsidiary, (b) Dispositions
of inventory, or used, worn-out or surplus equipment, all in the Ordinary
Course of Business, (c) Dispositions of equipment to the extent that such
equipment is exchanged for credit against the purchase price of similar
replacement equipment, or the proceeds of such sale are reasonably promptly
applied to the purchase price of such replacement equipment or where the
Company or its Subsidiary determine in good faith that the failure to replace
such equipment will not be detrimental to the business of the Company or its
Subsidiary, (d) a Disposition to the Company or a Subsidiary,
(e) Dispositions of accounts receivable in connection with a Permitted
Accounts Receivable Financing, or (f) Dispositions identified on Schedule 7.02.

 

“Permitted Liens” means:

 

(a)                                  Liens
for taxes, fees, assessments or other governmental charges which are not
delinquent or remain payable without penalty, or to the extent that non-payment
thereof is permitted by Section 6.07, provided that
no Notice of Lien has been filed or recorded under the Code;

 

22

 

(b)                                 carriers’,
warehousemen’s, mechanics’, landlords’, materialmen’s, repairmen’s or other
similar Liens arising in the Ordinary Course of Business which are not
delinquent or remain payable without penalty or which are being contested in
good faith and by appropriate proceedings, which proceedings have the effect of
preventing the forfeiture or sale of the Property subject thereto or which do
not in the aggregate with respect to any one Property so encumbered have a
Material Adverse Effect;

 

(c)                                  Liens
(other than any Lien imposed by ERISA) incurred or pledges or deposits required
in the Ordinary Course of Business in connection with workers’ compensation,
unemployment insurance and other social security legislation;

 

(d)                                 (i) Liens
on Property acquired by the Company or any of its Subsidiaries that were in
existence at the time of the acquisition of such Property and were not created
in contemplation of such acquisition; (ii) Liens existing on any asset of
any person at the time such person becomes a Subsidiary of the Company and not
created in contemplation of such event; (iii) Liens on any asset of any
person existing at the time such person is merged or consolidated with or into
the Company or a Subsidiary of the Company and not created in contemplation of
such event; (iv) Liens arising out of the refinancing, extension, renewal
or refunding of any obligations secured by any Lien permitted by this clause
(d); provided that such obligations are not
increased and are not secured by any additional assets; and (v) Liens related to the acquisition, construction or
alteration of Property (including liens placed upon the acquired Property up to
270 days following such acquisition, or completion of such construction or
alteration), including purchase money liens;

 

(e)                                  easements,
rights-of-way, restrictions and other similar encumbrances incurred in the
Ordinary Course of Business which do not in any case materially detract from
the value of the Property subject thereto or interfere with the ordinary
conduct of the businesses of the Company and its Subsidiaries;

 

(f)                                    Liens
arising solely by virtue of any statutory or common law provision relating to
banker’s liens, rights of set-off or similar rights and remedies as to deposit
accounts or other funds maintained with a creditor depository institution; provided that (i) such deposit account is not a
dedicated cash collateral account and is not subject to restrictions against
access by the Company in excess of those set forth by regulations promulgated
by the Federal Reserve Board, and (ii) such deposit account is not
intended by the Company or any of its Subsidiaries to provide collateral to the
depository institution;

 

(g)                                 Liens
on the Property of the Company or any of its Subsidiaries securing (i) the
performance of bids, trade contracts (other than borrowed money), leases,
statutory obligations, and (ii) obligations on surety and appeal bonds,
and (iii) other obligations of a like nature incurred in the Ordinary
Course of Business;

 

23

 

(h)                                 Liens
associated with a Permitted Accounts Receivable Financing;

 

(i)                                     Liens
on Property or assets of a Subsidiary of the Company to secure Indebtedness of such
Subsidiary to the Company or its Subsidiaries;

 

(j)                                     Liens
securing financing for all or a portion of the purchase or construction cost of
real Property acquired after the Closing Date to be used in the Ordinary Course
of the Business (provided that any such Lien shall
not encumber any other Property of the Company or its Subsidiaries), including
Capital Lease Obligations and the ownership by third parties of assets
capitalized as finance leases under GAAP;

 

(k)                                  Liens
arising from purchase money financing of equipment, including Capital Lease
Obligations and the ownership by third parties of assets capitalized as finance
leases under GAAP;

 

(l)                                     Liens
arising in the Ordinary Course of Business in favor of a customer, which Liens
are inherent in the government contracting process; and

 

(m)                               Liens
on assets identified as “Restricted Cash”
on the Company’s balance sheet which are payable to third parties.

 

“Person” means any individual or entity,
including a trustee, corporation, limited liability company, general
partnership, limited partnership, joint stock company, trust, estate,
unincorporated organization, business association, firm, joint venture,
Governmental Authority, or other entity.

 

“Plan” means an employee pension benefit
plan (as defined in Section 3(2) of ERISA) which any member of the
Controlled Group sponsors or maintains or to which the Company or member of the
Controlled Group makes or is obligated to make contributions, and which is
subject to the provisions of Title IV of ERISA.

 

“Principal Financial Center” means (a) in
the case of Canadian Dollars, Toronto, Canada, (b) in the case of Euros,
Frankfurt, Germany, (c) in the case of Yen, Tokyo, Japan, (d) in the case of
British Pounds Sterling, London, United Kingdom, and (d) in the case of any
Foreign Currency other than listed in subclauses (a) through (d), as agreed
between the Administrative Agent and the Company on or prior to the date on
which a Foreign Currency Loan in such other Foreign Currency is made.

 

“Property” means any estate or interest in
any kind of property or asset, whether real, personal or mixed, and whether
tangible or intangible.

 

“Pro Rata Share” means, with respect to
each Lender, the percentage of the combined Commitments set forth opposite the
name of that Lender on Schedule 2.01.

 

24

 

“Qualified Plan” means a pension plan (as
defined in Section 3(2) of ERISA) intended to be tax-qualified under
Section 401(a) of the Code and which any member of the Controlled Group
sponsors, maintains, or to which it makes or is obligated to make
contributions, or in the case of a multiple employer plan (as described in
Section 4064 (a) of ERISA) has made contributions at any time during
the immediately preceding period covering at least five (5) plan years, but
excluding any Multiemployer Plan.

 

“Quarterly Payment Date” means each
June 30, September 30, December 31 and March 31.

 

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

 

“Reportable Event” means any of the events
set forth in Section 4043(b) of ERISA or the regulations thereunder for
which the requirement of 30-day notice has not been waived, a withdrawal from a
Plan described in Section 4063 of ERISA, or a cessation of operations
described in Section 4062(e) of ERISA.

 

“Request for Extension of Credit” means a
written request substantially in the form of Exhibit A, duly completed and
signed by a Responsible Officer.

 

“Requirement of Law” means, as to any
Person, any law (statutory or common), treaty, rule or regulation or
determination of an arbitrator or of a Governmental Authority, in each case
applicable to or binding upon the Person or any of its Property or to which the
Person or any of its Property is subject.

 

“Requisite Lenders” means (a) as of
any date of determination if the Commitments are then in effect, Lenders having
in the aggregate 51% or more of the combined Commitments then in effect and
(b) as of any date of determination if the Commitments have then been
terminated and there are Loans outstanding, Lenders holding Loans aggregating
51% or more of the aggregate outstanding principal amount of the Loans.

 

“Requisite Notice” means, unless otherwise
provided herein, (a) irrevocable telephonic notice to the intended
recipient, promptly followed by a written notice to such Person, or
(b) irrevocable written notice to the intended recipient, in each case
(x) delivered or made to such Person at the address, telephone number or
facsimile number set forth on Schedule 10.02 or as otherwise designated by
such Person by Requisite Notice to the Administrative Agent and (y) if
made by any Credit Party, given by a Responsible Officer.  Any written notice shall be in the form, if
any, prescribed in the applicable section and may be given by facsimile
provided such facsimile is promptly confirmed by a telephone call to such
recipient.

 

25

 

“Requisite Time” means, with respect to any
of the actions listed below, the time set forth opposite such action on or
prior to the date set forth below (all times are New York Time):

 

	
  Action

  	
   

  	
  Time

  	
   

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Borrowing
  of or Conversion into, Base Rate Loans

  	
   

  	
  11:00 a.m.

  	
   

  	
  Relevant date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Prepayment
  of Base Rate Loans

  	
   

  	
  1:00 p.m.

  	
   

  	
  Relevant date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Borrowing
  of, Continuation of, prepayment of or Conversion into Dollar LIBOR Loans of
  1, 2, 3 or 6 months

  	
   

  	
  1:00 p.m.

  	
   

  	
  3 Business Days prior
  to relevant date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Borrowing
  of, Continuation of, prepayment of or Conversion into, Dollar LIBOR Loans of
  9 or 12 months

  	
   

  	
  1:00 p.m.

  	
   

  	
  3 Business Days prior
  to relevant date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Initial
  Borrowing of Foreign Currency Loans by a Foreign Borrower

  	
   

  	
  1:00 p.m.

  	
   

  	
  5 Business Days prior
  to Credit Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other
  Borrowings, Continuations or prepayment of Foreign Currency Loans

  	
   

  	
  1:00 p.m.

  	
   

  	
  3 Business Days prior
  to relevant date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Voluntary
  Reduction of Commitments

  	
   

  	
  1:00 p.m.

  	
   

  	
  3 Business Days prior
  to relevant date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Funds
  made available by Lenders to Administrative Agent

  	
   

  	
  1:00 p.m.

  	
   

  	
  Relevant Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Funds
  made available by applicable Credit Party 
  to Administrative Agent

  	
   

  	
  2:00 p.m.

  	
   

  	
  Relevant Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Termination
  of Commitment, replacement

  	
   

  	
  1:00 p.m.

  	
   

  	
  3 Business Days prior
  to date of termination or replacement

  	
   

  

 

“Responsible Officer” means the chief
executive officer, the president, the chief operating officer, the chief
financial officer, the chief legal officer, the treasurer or the controller of
each of the Credit Parties.  Any document
or certificate hereunder that is signed or executed by a Responsible Officer
shall be conclusively presumed to have been authorized by all necessary
corporate, partnership and/or other action on the part of the relevant Credit
Party and to have acted on behalf of such Credit Party.

 

26

 

“Securities Act” means the U.S. Securities
Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Significant Subsidiary” means, with
respect to any Person, any Subsidiary that meets the definition of “significant
subsidiary” under Rule 1-02(w) of Regulation S-X promulgated by the U.S.
Securities and Exchange Commission.

 

“Statutory Reserve Rate” means, (a) for any
Dollar LIBOR Loan, a fraction (expressed as a decimal), the numerator of which
is the number one and the denominator of which is the number one minus the
aggregate maximum reserve percentages, if any (expressed as a decimal, rounded
upward to the nearest 1/16th of 1%), in effect on the date Dollar LIBOR for
such Interest Period is determined (whether or not applicable to any Bank)
under regulations issued from time to time by the Federal Reserve Board for
determining the reserve requirement (including any emergency, supplemental or
other marginal reserve requirement) with respect to eurocurrency funding
(currently referred to as “Eurocurrency liabilities”) having a term comparable
to such Interest Period and (b) for any Foreign Currency Loan, a fraction
(expressed as a decimal), the numerator of which is the number one and the
denominator of which is the number one minus the aggregate maximum reserve
percentages, if any (expressed as a decimal, rounded upward to the nearest
1/16th of 1%), in effect on the date IBOR for such Interest Period is
determined (whether or not applicable to any Bank) under generally applicable
regulations and guidelines for determining the reserve requirement (including
any emergency, supplemental or other marginal reserve requirement) with respect
to eurocurrency funding in the applicable Foreign Currency having a term
comparable to such Interest Period.  The
Statutory Reserve Rate shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.

 

“Subsidiary” of a Person means any
corporation, association, partnership, joint venture or other business entity
of which more than 50% of the voting stock or other equity interests (in the
case of Persons other than corporations), is owned or controlled directly or
indirectly by the Person, or one or more of the Subsidiaries of the Person, or
a combination thereof.

 

“Synthetic Lease” means, with respect to
any Person, (a) a so-called synthetic lease, or (b) an agreement for
the use or possession of property creating obligations which do not appear on
the balance sheet of such Person but which, upon the insolvency or bankruptcy
of such Person, would be characterized as the Indebtedness of such Person
(without regard to accounting treatment).

 

 “to the
best knowledge of” means, when modifying a representation, warranty
or other statement of any Person, that the fact or situation described therein
is known by the Person (or, in the case of a Person other than a natural Person,
known by a Responsible Officer) making the representation, warranty or other
statement, or with the exercise of reasonable due diligence under the
circumstances (in accordance with the standard of what a reasonable Person in
similar circumstances would have done) would have been

 

27

 

known by the Person (or,
in the case of a Person other than a natural Person, would have been known by a
Responsible Officer).

 

“Transactions” means the execution, delivery
and performance by the Company of this Agreement, the borrowing of Loans and
the use of the proceeds thereof.

 

“type” of Loan means (a) a Base Rate
Loan, (b) a Dollar LIBOR Loan, (c) a Competitive Loan bearing interest at
an Absolute Rate, (d) a Competitive Loan bearing interest based upon Adjusted
Dollar LIBOR or (e) a Foreign Currency Loan.

 

“Unfunded Pension Liabilities” means with
respect to any Plan at any time, the amount (if any) by which (a) 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 (b) 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.

 

“Yen” means lawful money of Japan.

 

“2004
Agreement” means that certain Credit Agreement, dated as of
July 28, 2004, among the Company, the Lenders, JPMorgan Chase Bank, as
Administrative Agent, Citicorp USA, Inc. as Syndication Agent and Morgan
Stanley Bank, Wachovia Bank, National Association and The Royal Bank of
Scotland plc as Co-Documentation Agents.

 

Section 1.02.  Performance;
Time.  Except as otherwise
specifically provided herein, whenever any performance obligation hereunder
shall be stated to be due or required to be satisfied on a day other than a
Business Day, such performance shall be made or satisfied on the next
succeeding Business Day.  In the
computation of periods of time from a specified date to a later specified date,
the word “from” means “from and including”; the words “to” and “until” each
mean “to but excluding”, and the word “through” means “to and including.”  If any provision of this Agreement refers to
any action taken or to be taken by any Person, or which such Person is prohibited
from taking, such provision shall be interpreted to encompass any and all
means, direct or indirect, of taking, or not taking, such action.

 

Section 1.03.  Accounting
Principles.  Unless the
context otherwise clearly requires, all accounting terms not expressly defined
herein shall be construed, and all financial computations required under this
Agreement shall be made, in accordance with GAAP, consistently applied; provided, that, if the Company notifies the Administrative
Agent that the Company wishes to amend any provision hereof to eliminate the
effect of any change in GAAP (or if the Administrative Agent notifies the
Company that the Requisite Lenders wish to amend any provision hereof for such
purpose), then such

 

28

 

provision shall be applied on the basis of GAAP in
effect immediately before the relevant change in GAAP became effective, until
either such notice is withdrawn or such provision is amended in a manner
satisfactory to the Company and the Requisite Lenders.

 

Section 1.04.  Use of
Defined Terms.  Any defined
term used in the plural shall refer to all members of the relevant class, and
any defined term used in the singular shall refer to any one or more of the
members of the relevant class.

 

Section 1.05.  Rounding.  Any financial ratios required to be
maintained by the Company pursuant to this Agreement shall be calculated by
dividing the appropriate component by the other component, carrying the result
to one place more than the number of places by which such ratio is expressed in
this Agreement and rounding the result up or down to the nearest number (with a
round-up if there is no nearest number) to the number of places by which such
ratio is expressed in this Agreement.

 

Section 1.06.  Exhibits
and Schedules.  All Exhibits
and Schedules to this Agreement are incorporated herein by this reference.  A matter disclosed on any Schedule shall
be deemed disclosed on all Schedules.

 

Section 1.07.  References
to “Subsidiaries”.  Any
reference herein to “the Company and its Subsidiaries”, “any Borrower and its
Subsidiaries”, “any Foreign Borrower and its Subsidiaries”, “any Credit Party
and its Subsidiaries” or the like shall refer solely, as the case may be, to
the Company, the applicable Borrower, Foreign Borrower or Credit Party during
such times, if any, as the Company, such Borrower, Foreign Borrower or Credit
Party shall have no Subsidiaries.

 

Section 1.08.  Miscellaneous
Terms.  The term “or” is disjunctive; the term “and” is conjunctive.  The term “shall”
is mandatory; the term “may” is
permissive.  Masculine terms also apply
to females; feminine terms also apply to males. 
The term “including” is by
way of example and not limitation.

 

ARTICLE II

 

COMMITMENTS;
INTEREST, FEES, PAYMENT PROCEDURES

 

Section 2.01.  The
Commitments.

 

(a)                                  Subject to the terms and conditions set forth in
this Agreement, each Lender severally (and not jointly) agrees, during the
Availability Period (i) to make, Convert and Continue Dollar Loans to the
Company as the Company may request, and (ii) to make and Continue Foreign
Currency Loans to the Company or any Foreign Borrower as the Company or such
Foreign Borrower may request; provided, however, that in each case:  (A) for any Lender, the sum of
(1) the aggregate LC Exposure of such Lender, (2) the aggregate
principal amount of all Dollar Loans made by such Lender, and

 

29

 

(3) the Equivalent Amount of the
aggregate principal amount of all Foreign Currency Loans made by such Lender,
shall not exceed such Lender’s Commitment at any time, (B) the sum of
(1) the aggregate LC Exposure of all Lenders, (2) the aggregate
principal amount of all Dollar Loans made by all Lenders, (3) the
Equivalent Amount of the aggregate principal amount of all Foreign Currency
Loans made by all Lenders, and (4) the aggregate principal amount of all
Competitive Loans made by all Lenders, shall not exceed the combined
Commitments at any time, and (C) the Equivalent Amount of the aggregate
principal amount of all Foreign Currency Loans made by all Lenders shall not
exceed the Foreign Currency Limit at any time. 
Subject to the foregoing and other terms and conditions hereof,
Committed Loans may be Borrowed, prepaid and reborrowed as set forth herein without
premium or penalty.  The Borrower may
Convert a Dollar LIBOR Loan to a Base Rate Loan or a Base Rate Loan to a Dollar
LIBOR Loan upon request, subject to the terms and conditions of this Agreement.  The Borrower may not Convert a Dollar Loan to
a Foreign Currency Loan, a Foreign Currency Loan to a Dollar Loan or a Loan in
one Foreign Currency to a Loan in any other Foreign Currency.  Each Competitive Loan shall be made
in accordance with Section 2.03.  The available Commitments also may be utilized by
the Company to obtain Letters of Credit in accordance with Section 2.11.

 

(b)                                 Committed
Loans made by each Lender shall be evidenced by one or more loan accounts or
records maintained by such Lender in the Ordinary Course of Business.  Upon the request of any Lender made through
the Administrative Agent, such Lender’s Committed Loans may be evidenced by one
or more Committed Loan Notes, instead of or in addition to loan accounts.  (Each such Lender may endorse on the
schedules annexed to its Committed Loan Note the date, amount and maturity of
its Committed Loans and payments with respect thereto.) Such loan accounts,
records or Notes shall be conclusive absent manifest error of the amount of
such Committed Loans and payments thereon. 
Any failure so to record or any error in doing so shall not, however, limit or otherwise affect the obligation of any
Credit Party to pay any amount owing with respect to the Committed Loans.

 

(c)                                  Unless
the Administrative Agent and the Requisite Lenders otherwise consent, Loans
with no more than 15 different Interest Periods shall be outstanding at
any one time; provided
that for the purposes of this sentence only, “Loans” shall mean all Loans
outstanding under this Agreement.

 

(d)                                 The
Company may designate one or more Subsidiaries to become Foreign Borrowers for
purposes of receiving Foreign Currency Loans, provided that, (i) such
Subsidiary is, directly or indirectly through one or more intermediaries,
wholly-owned by the Company, (ii) such Subsidiary is neither organized nor
domiciled in any State of the United States of America or in the District of
Columbia, (iii) the Administrative Agent shall receive a duly executed Foreign
Borrower Joinder Agreement, together with such organization documentation,
certificates, opinions and other documentation and information, as may be
reasonably requested by the Administrative Agent to evidence compliance with
the conditions to the effectiveness of

 

30

 

such Foreign Borrower Joinder Agreement described in
Section 4.03.  Foreign Currency
Loans shall be Borrowed and Continued as Euromarket Funded unless the
Administrative Agent, each Lender and the Company or the applicable Foreign
Borrower, as the case may be, agree that such Foreign Currency Loans shall be
Locally Funded.

 

Section 2.02.  Borrowings,
Conversions and Continuations of Committed Loans.

 

(a)                                  A
Borrower may irrevocably request a Borrowing, Conversion or Continuation of
Committed Loans in a Minimum Amount by delivering a duly completed Request for
Extension of Credit by Requisite Notice to the Administrative Agent not later
than the Requisite Time.  All Borrowings,
Conversions or Continuations in respect of Dollar Loans shall constitute requests
for Base Rate Loans and all Borrowings or Continuations in respect of Foreign
Currency Loans shall constitute requests for Foreign Currency Loans with an
Interest Period of one month, in each case unless properly and timely otherwise
designated as set forth in the prior sentence. 
In the case of Dollar LIBOR Loans, each Lender shall promptly notify the
Administrative Agent (who shall promptly notify the applicable Borrower)
whether such Lender, in its sole discretion, consents to funding a Dollar LIBOR
Loan for such requested Interest Period(s) for such Borrowing.  If any Lender does not so consent, Dollar
LIBOR Loans shall not be available for such Interest Period(s) for such
Borrowing.

 

(b)                                 Each Committed Loan shall be
made as part of a Borrowing consisting of Committed Loans made by the Lenders
ratably in accordance with their respective Commitments.  Promptly following receipt of a
Request for Extension of Credit, the Administrative Agent shall notify each
Lender of its Pro Rata Share thereof by Requisite Notice.  Each Lender shall make the funds for its
Committed Loan available to the Administrative Agent at the Administrative
Agent’s Office not later than the Requisite Time on the Business Day specified
in such Request for Extension of Credit. 
Upon satisfaction or waiver of the applicable conditions set forth in
Article IV, all funds so received shall be made available to Borrower.

 

(c)                                  The
Administrative Agent shall promptly notify the applicable Borrower and the
Lenders of Adjusted IBOR applicable to any IBOR Loan upon determination of same.

 

(d)                                 No
Loans other than Base Rate Loans may be requested or continued during the
existence of an Event of Default. During the existence of an Event of Default
described in clause (a), (e), (f), (g), or (i) of Section 8.01, the
Requisite Lenders may determine that (i) any or all of the then outstanding
Dollar Loans that are Dollar LIBOR Loans shall be Converted to Base Rate Loans
and/or (ii) any or all of the outstanding Foreign Currency Loans with an
Interest Period greater than one month shall be replaced by Foreign Currency
Loans with an Interest Period of one month. 
Such Conversion or replacement shall be effective upon notice to the
applicable Borrower from the Administrative Agent and shall continue so long as
such Event of Default continues

 

31

 

to exist, or in the case of Foreign Currency Loans,
the earlier expiration of the applicable Interest Period.

 

(e)                                  If
a Committed Loan is to be made on the same date that another Committed Loan is
due and payable, the applicable Borrower or the Lenders, as the case may be,
shall make available to the Administrative Agent the net amount of funds giving
effect to both such Committed Loans and the effect for purposes of this
Agreement shall be the same as if separate transfers of funds had been made
with respect to each such Committed Loan.

 

(f)                                    The
failure of any Lender to make any Committed Loan on any date shall not relieve
any other Lender of any obligation to make a Committed Loan on such date, but
no Lender shall be responsible for the failure of any other Lender to so make
its Committed Loan.

 

Section 2.03.  Competitive Loans.

 

(a)                                  Subject
to the terms and conditions hereof, at any time and from time to time during
the Availability Period, each Lender may in its sole and absolute discretion
make Competitive Loans to the Company in such principal amounts as the Company
may request; provided, however, that the sum of (i) the aggregate LC Exposure
of all Lenders, (ii) the aggregate principal amount of all Dollar Loans made by
all Lenders, (iii) the Equivalent Amount at any time of the aggregate principal
amount of all Foreign Currency Loans made by all Lenders, and (iv) the
aggregate principal amount of all Competitive Loans, shall not exceed at any
time the combined Commitments; provided, further, that the outstanding
Competitive Loans made by any Lender may exceed its Commitment. The Competitive
Loans shall be deemed to utilize the combined Commitments by an amount equal to
the aggregate outstanding principal amount thereof.

 

(b)                                 The
Company may irrevocably request Competitive Loans in a Competitive Loan Minimum
Amount therefor by delivering a duly completed Competitive Bid Request by
Requisite Notice not later than the Competitive Loan Requisite Time therefor.
Each Competitive Bid Request shall state whether a Competitive Bid is requested
on the basis of a fixed interest rate (an “Absolute
Rate Bid”) or on the basis of a margin above or below Adjusted
Dollar LIBOR (a “LIBOR Margin Bid”).
The Company may not request Competitive Bids for more than three maturities nor
request more than one type of Competitive Loan in a single Competitive Bid
Request. Unless the Administrative Agent otherwise agrees, in its sole and
absolute discretion, the Company may not submit a Competitive Bid Request if it
has submitted another Competitive Bid Request within the prior five Business
Days.

 

(c)                                  No
Competitive Bid Request shall be made for an Absolute Rate Bid with a maturity
of less than 14 days or more than 180 days, for a LIBOR Margin Bid with a
maturity other than one, two, three or six months, or in any case with a
maturity

 

32

 

date subsequent to the Maturity Date. No more than ten
different maturities for Competitive Loans may be outstanding at any time.

 

(d)                                 The
Administrative Agent shall promptly notify the Lenders of a Competitive Bid
Request by delivering a written copy thereof to the Lenders. Each Lender may,
in its sole and absolute discretion, bid or not bid on all or a portion of the
Competitive Loans requested in such Competitive Bid Request by delivering by
Requisite Notice an irrevocable, duly completed Competitive Bid to the
Administrative Agent by the Competitive Loan Requisite Time for delivering
Competitive Bids. Any Competitive Bid received after such Competitive Loan
Requisite Time, that is in a form other than a duly completed Competitive Bid
Request, or that is otherwise not responsive to the Competitive Bid Request
shall be disregarded. A Lender may subsequently correct any Competitive Bid
containing a manifest error if it does so by the Competitive Loan Requisite
Time for delivering Competitive Bids. The Administrative Agent may, but shall
not be required to, notify any Lender of any manifest error it detects in such
Lender’s Competitive Bid.

 

(e)                                  The
Competitive Bid Maximum offered by a Lender for any Competitive Loan(s)
requested in a Competitive Bid may be less than the principal amount of such
Competitive Loan(s) requested by the Company, but shall not be less than the
Competitive Loan Minimum Amount for any Competitive Loan for which such Lender
is bidding. Each Competitive Bid shall expire unless accepted by the Company
prior to the Competitive Loan Requisite Time for accepting Competitive Bids.

 

(f)                                    The
Administrative Agent shall promptly notify the Company of the names of the
Lenders providing conforming Competitive Bids and the terms of such Competitive
Bids. The Company may, in its sole and absolute discretion, accept or reject
any Competitive Bid, or any portion thereof, provided, that if the Company
accepts any Competitive Bid, or any portion thereof, the following shall
apply:  (i) the Company must notify
the Administrative Agent of its acceptance of any Competitive Bids not later
than the Competitive Loan Requisite Time for doing so, (ii) the Company
must accept all Absolute Rate Bids at all lower fixed interest rates before
accepting any portion of Absolute Rate Bids at a higher fixed interest rate,
(iii) the Company must accept all LIBOR Margin Bids at all lower margins
over Adjusted Dollar LIBOR before accepting any portion of LIBOR Margin Bids at
a higher margin over Adjusted Dollar LIBOR, (iv) each Competitive Loan to be
made must be in a Competitive Loan Minimum Amount therefor, (v) if two or more
Lenders have submitted a Competitive Bid at the same fixed interest rate or
margin, then the Company must accept either all of such Competitive Bids or
accept such Competitive Bids in the same proportion as the Competitive Bid
Maximum of each Lender for such Competitive Loan bears to the aggregate
Competitive Bid Maximums of all such Lenders for such Competitive Loans
(subject to clause (iv) above) and (vi) the Company may not accept
Competitive Bids for an aggregate amount in excess of the Competitive Loans
requested in its Competitive Bid Request.

 

33

 

(g)                                 The
Administrative Agent shall promptly notify each of the Lenders whose
Competitive Bid, or any portion thereof, has been accepted or rejected by the Company
by telephone, which notification shall promptly be confirmed in writing,
delivered in person or by telecopier to such Lenders. Any Competitive Bid, or
portion thereof, not timely accepted by the Company and/or timely notified by
the Administrative Agent to a Lender as having been accepted shall be deemed
rejected.

 

(h)                                 In
the case of a LIBOR Margin Bid, the Administrative Agent shall determine
Adjusted Dollar LIBOR on the date which is two Business Days prior to the date
of the proposed Competitive Loan, and shall promptly thereafter notify the
Company and the Lenders whose LIBOR Margin Bids were accepted by the Company of
such Adjusted Dollar LIBOR.

 

(i)                                     Each
Lender which has had a Competitive Bid, or portion thereof, accepted by the
Company shall make the funds for its Competitive Loan(s) available to the
Administrative Agent at the Administrative Agent’s Office not later than the
Requisite Time for making such funds available on the Business Day specified in
such Competitive Loan Request. Upon satisfaction or waiver of the applicable
conditions set forth in Article IV, all funds so received shall be made
available to the Company.

 

(j)                                     Each
Lender’s Competitive Loan shall be evidenced by that Lender’s Competitive Loan
Note or by one or more loan accounts or records maintained by such Lender in
the Ordinary Course of Business, in each case subject to Section 2.01 (b).

 

(k)                                  Each
Competitive Loan shall be due and payable on the maturity date of such
Competitive Loan.

 

Section 2.04.  Prepayments.

 

(a)                                  The
applicable Borrower may at any time and from time to time voluntarily prepay
Committed Loans in a Minimum Amount after delivering an irrevocable Requisite
Notice not later than the Requisite Time for prepayments.  The Administrative Agent will promptly notify
each Lender thereof and of such Lender’s Pro Rata Share of such
prepayment.  Each prepayment by a
Borrower must be made ratably to all outstanding Committed Loans of such
Borrower borrowed on the same day.

 

(b)                                 If
for any reason either (i) the sum of (A) the aggregate LC Exposure of all
Lenders, (B) the aggregate principal amount of all Dollar Loans made by all
Lenders, (C) the Equivalent Amount of the aggregate principal amount of all
Foreign Currency Loans made by all Lenders and (D) the aggregate principal
amount of all Competitive Loans made by all Lenders, exceeds the combined
Commitments in effect at any time or (ii) the Equivalent Amount of the aggregate principal amount of all Foreign
Currency Loans made by the Lenders exceeds the Foreign Currency Limit,
then upon written request of the Administrative Agent the Company shall
immediately prepay or

 

34

 

cause one or more Foreign Borrowers to immediately
prepay Committed Loans sufficient to cure such overage.

 

(c)                                  Any
prepayment of an IBOR Loan shall be accompanied by all accrued interest
thereon, together with the costs set forth in Section 3.05.

 

(d)                                 Competitive
Loans may not be prepaid unless (i) expressly so provided in the Competitive
Bid Request and Competitive Bid for such Competitive Loan or (ii) otherwise
agreed by the Company and the Lender making such Competitive Loan after notice
to the Administrative Agent.

 

(e)                                  The
Company may from time to time elect to prepay pursuant to the Guaranty all or
part of any Foreign Currency Loan of a Foreign Borrower and such prepayment by
the Company shall be made in the manner and subject to the terms that a
prepayment would be made by the Foreign Borrower under this Agreement.

 

Section 2.05.  Voluntary
Reduction of Commitments.

 

The Company shall have
the right, at any time and from time to time, without penalty or charge, upon
giving Requisite Notice not later than the Requisite Time, voluntarily to
reduce, permanently and irrevocably, in a Minimum Amount, or to terminate, the
then unused portion of the Commitments, provided that
any such reduction or termination shall be accompanied by payment of all
accrued and unpaid Facility Fees with respect to the portion of the Commitments
being reduced or terminated.  The
Administrative Agent shall promptly notify the Lenders of any reduction or
termination of the Commitments under this Section.  Each Lender’s Commitment shall be reduced by
an amount equal to such Lender’s Pro Rata Share times the amount of such
reduction.

 

Section 2.06.  Principal
and Interest.

 

(a)                                  If
not sooner paid, the outstanding principal amount of each Committed Loan and
Competitive Loan shall be due and payable on the Maturity Date or, if such Loan
is not Continued or Converted, at the end of the applicable Interest Period.

 

(b)                                 Each
Borrower shall pay interest on the unpaid principal amount of the Loans made to
it (before and after default, before and after maturity, before and after
judgment, and before and after the commencement of any Insolvency Proceeding)
from the date borrowed until paid in full (whether at stated maturity, by
acceleration or otherwise) on each Interest Payment Date for each type of Loan
at a rate per annum equal to the applicable interest rate determined in
accordance with the definition of such type of Loan in this Agreement, plus, in
the case of IBOR Loans, the Applicable Amount.

 

(c)                                  If
any amount of principal of or interest on any Loan or any other amount payable
under any Loan Document is not paid in full when due (whether by

 

35

 

acceleration or otherwise) or, in the case of
reimbursement obligations under Section 2.11, one Business Day after the
date such reimbursement obligations accrues, each Borrower shall pay interest
on such unpaid amount from the date such amount becomes due (or, in the case of
reimbursement obligations under Section 2.11, one Business Day after the
date such reimbursement obligation accrues) until the date such amount is paid
in full, and after as well as before any entry of judgment thereon, at a
fluctuating rate of interest rate equal to the Default Rate.  Accrued and unpaid interest on past due
amounts (including, without limitation, interest on past due interest) shall be
compounded monthly, on the last day of each calendar month, to the fullest
extent permitted by Requirement of Law, and payable on demand.

 

(d)                                 Amounts due under this Agreement in respect
of any Loan shall be deemed paid for the purposes of this Agreement only, in
the case of Dollar Loans, to the extent paid in Dollars or, in the case of
Foreign Currency Loans, to the extent paid in the applicable Foreign
Currency.  If the Administrative Agent
receives any payment in respect of any Loan in any currency other than the
currency of such Loan, (including upon enforcement of or collection of a
judgment), the Administrative Agent may in its sole discretion return such
payment to the payor or convert such payment to the currency of such Loan and
apply the net proceeds to payment of amounts due in respect of such Loan in
accordance with this Agreement, provided
that (i) amounts due in respect of such Loan shall be deemed to have been paid
by the Borrower only to the extent of the net proceeds, if any, so applied by
the Administrative Agent and (ii) the Administrative Agent shall have no
liability to any Credit Party, Lender or any other Person arising out of or
relating to such conversion of funds or the exchange rate utilized in
connection therewith, in each case except to the extent of the Administrative
Agent’s own gross negligence or willful misconduct.

 

Section 2.07.  Fees.

 

(a)                                  Facility Fee.  The Company shall pay to the Administrative
Agent, for the account of each Lender, a Facility Fee equal to the Applicable
Amount for the Facility Fee times such Lender’s Pro Rata Share of the daily
aggregate amount of the combined Commitments, (determined daily on a per annum
basis).  The Facility Fee under the
Commitments shall accrue from the Closing Date to but excluding the Maturity
Date and shall be payable quarterly in arrears on each Quarterly Payment Date
and on the Maturity Date.  The Facility
Fee shall be calculated quarterly in arrears; if there is any change in the
Applicable Amount during any quarter, the average daily amount shall be computed
and multiplied by the Applicable Amount separately for each period that such
Applicable Amount was in effect during such quarter.

 

(b)                                 Agency Fee.  The Company shall pay to the Administrative
Agent an agency fee in such amounts and at such times as heretofore agreed upon
by letter agreement between the Company and the Administrative Agent.  The agency fee is for the services to be
performed by the Administrative Agent in acting as Administrative

 

36

 

Agent and is fully earned on the date paid.  The agency fee paid to the Administrative
Agent is solely for its own account and is nonrefundable.

 

(c)                                  Letter of Credit Fees.  The
Company shall pay

 

(i)                                     to the Administrative Agent
for the account of each Lender a participation fee with respect to its
participations in Letters of Credit, which shall accrue in Dollars at the same
Applicable Amount used to determine the interest rate applicable to Committed
Loans that are Dollar LIBOR Loans or Foreign Currency Loans on the average
daily amount of such Lender’s LC Exposure, as determined by the Issuing Bank
using its customary method of calculating the Dollar amount equivalent of its
Foreign Currency Letters of Credit (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the Closing
Date to but excluding the later of the date on which such Lender’s Commitment
terminates and the date on which such Lender ceases to have any LC Exposure,
and

 

(ii)                                  to the Issuing Bank a
fronting fee and fees with respect of the issuance, amendment, renewal or
extension of any Letter of Credit or processing of drawings thereunder, as may
be separately agreed upon between the Company and the Issuing Bank.

 

Participation fees accrued through and including the last
day of March, June, September and December of each year shall be
payable on the third Business Day following such last day, commencing on the
first such date to occur after the Closing Date; provided that all such fees shall
be payable on the date on which the Commitments terminate and any such fees
accruing after the date on which the Commitments terminate shall be payable on
demand.  Any other fees payable to the
Issuing Bank pursuant to this paragraph shall be payable as agreed between the
Issuing Bank and the Company.  All
participation fees shall be computed on the basis of a year of 360 days and
shall be payable for the actual number of days elapsed (including the first day
but excluding the last day).

 

Section 2.08.  Computation
of Fees and Interest. 
Computations of (i) interest with respect to Base Rate Loans and (ii)
Local Market IBOR (but not the Applicable Amount or any fees or other amounts)
with respect to Foreign Currency Loans in British Pounds Sterling shall be
calculated on the basis of a year of 365 or 366 days, as the case may be, and
the actual number of days elapsed; computations of interest on all other types
of Loans and all fees and other amounts under this Agreement shall be
calculated on the basis of a year of 360 days and the actual number of days
elapsed, which results in a higher yield to the Lenders than a method based on
a year of 365 or 366 days.  Interest
shall accrue on each Loan for the day on which the Loan is made; interest shall
not accrue on a Loan, or any portion thereof, for the day on which the Loan or
such portion is paid.  Notwithstanding
anything in this Agreement to the contrary, interest in excess of the maximum
amount permitted by any Requirement of Law shall not accrue or be payable
hereunder, and any amount paid as interest hereunder which

 

37

 

would otherwise be in excess of such maximum permitted
amount shall instead be treated as a payment of principal.

 

Section 2.09.  Manner and
Treatment of Payments among the Lenders, Borrowers and the Administrative Agent.

 

(a)                                  Unless
otherwise provided herein, all payments by any Credit Party or any Lender
hereunder shall be made to the Administrative Agent at the Administrative
Agent’s Office and account, or to any Person at such place and account as the
Administrative Agent may designate, in immediately available funds without
defense, setoff or counterclaim not later than the Requisite Time.  All payments received after the Requisite
Time shall be deemed received on the next succeeding Business Day.  All payments of fees pursuant to
Section 2.07 shall be payable by the Company in Dollars.  All payments of principal of or interest on
Competitive Loans or Committed Loans other than Foreign Currency Loans shall be
payable in Dollars.  All payments of
principal of or interest in a Foreign Currency Loan shall be payable in the
applicable Foreign Currency.

 

(b)                                 Upon
satisfaction of any applicable terms and conditions set forth herein, the
Administrative Agent shall promptly make any amounts received in accordance
with the prior subsection available in like funds received as follows:
(i) if payable to any Borrower, by crediting an account of such Borrower
maintained with the Administrative Agent in New York City and designated by
such Borrower in the applicable Request for Extension of Credit or Competitive
Bid Request or, if no account is maintained by such Borrower with the
Administrative Agent, then by wire transfer to an account designated in writing
by such Borrower and delivered to Administrative Agent, and (ii) if payable to
any Lender, by wire transfer to such Lender at the address specified in
Schedule 10.02.  The Administrative
Agent’s determination, or any Lender’s determination not contradictory thereto,
of any amount payable hereunder shall be conclusive in the absence of manifest
error.

 

(c)                                  Subject
to the definition of “Interest Period,”
if any payment to be made by any Borrower shall come due on a day other than a
Business Day, payment shall instead be considered due on the next succeeding
Business Day and the extension of time shall be reflected in computing interest
and fees.

 

(d)                                 Unless
any Borrower or Lender has notified the Administrative Agent prior to the date
any payment to be made by it is due, that it does not intend to remit such
payment, the Administrative Agent may, in its discretion, assume that such
Borrower or Lender, as the case may be, has timely remitted such payment and
may, in its discretion and in reliance thereon, make available such payment to
the Person entitled thereto.  If such
payment was not in fact remitted to the Administrative Agent, then:

 

(i)                                     if
any Borrower failed to make such payment, each Lender shall forthwith on demand
repay to the Administrative Agent the amount of such assumed payment made
available to such Lender, together with interest thereon in

 

38

 

respect of each day from
and including the date such amount was made available by the Administrative
Agent to such Lender to the date such amount is repaid to the Administrative
Agent at the greater of (x) the Federal Funds Rate and (y) such rate as may be
determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation; and

 

(ii)                                  if
any Lender failed to make such payment, such Lender shall on the Business Day
following such Credit Date pay to the Administrative Agent the amount of such
assumed payment made available to the applicable Borrower, together with interest
thereon in respect of each day from and including the date such amount was made
available by the Administrative Agent to such Borrower to the date such amount
is paid to the Administrative Agent at the greater of (x) the Federal Funds
Rate and (y) such rate as may be determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation.  Nothing herein shall be deemed to relieve any
Lender from its obligation to fulfill its Commitments or to prejudice any
rights which the Administrative Agent or any Borrower may have against any
Lender as a result of any default by such Lender hereunder.

 

(iii)                               if
any Lender failed to make a payment funding a Committed Loan, and fails to make
such payment on the Business Day following the Credit Date, the applicable
Borrower shall repay such Lender’s failed payment funding of such Commitment
Loan to the Administrative Agent immediately upon receipt of notice from the
Administrative Agent regarding such failure to pay by any such Lender.

 

Section 2.10.  Funding
Sources.  Nothing in this
Agreement shall be deemed to obligate any Lender to obtain the funds for any
Loan in any particular place or manner or to constitute a representation by any
Lender that it has obtained or will obtain the funds for any Loan in any
particular place or manner.

 

Section 2.11.  Letters of Credit.

 

(a)                                  General.  Subject to the terms and conditions set forth
herein, the Company may request the issuance of Letters of Credit for its own
account or for the account of any of its Subsidiaries, in a form reasonably
acceptable to the Administrative Agent and the Issuing Bank, at any time and
from time to time during the Availability Period.  In the event of any inconsistency between the
terms and conditions of this Agreement and the terms and conditions of any form
of letter of credit application or other agreement submitted by the Company to,
or entered into by the Company with, the Issuing Bank relating to any Letter of
Credit, the terms and conditions of this Agreement shall control.

 

(b)                                 Notice of
Issuance, Incorporation, Amendment, Renewal, Extension; Certain Conditions.  Whenever the Company desires to (i) have a
Letter of

 

39

 

Credit
issued hereunder, (ii) incorporate an existing letter of credit not issued
hereunder as a Letter of Credit for the purposes hereof or (iii) amend, renew
or extend a Letter of Credit outstanding hereunder, the Company shall hand
deliver or telecopy (or transmit by electronic communication, if arrangements
for doing so have been approved by the Issuing Bank) to the Issuing Bank and
the Administrative Agent (not less than three Business Days in advance of the
requested date of issuance, incorporation, amendment, renewal or extension) an
LC Request; specifying information as provided in the form attached
hereto as Exhibit E and such other information as shall be necessary in the
determination of the Issuing Bank to prepare, incorporate, amend, renew or
extend such Letter of Credit.  The date
of issuance, incorporation, amendment, renewal or extension specified in such
LC Request shall be a Business Day, and the date on which such Letter of Credit
is to expire shall comply with paragraph (c) of this Section.  If requested by the Issuing Bank, the Company also shall
submit a letter of credit application on the Issuing Bank’s standard form in
connection with any request for a Letter of Credit.  A Letter of Credit shall be issued,
incorporated, amended, renewed or extended only if (and upon issuance,
incorporation, amendment, renewal or extension of each Letter of Credit the
Company shall be deemed to represent and warrant that), after giving effect to
such issuance, incorporation, amendment, renewal or extension (i) the LC
Exposure shall not exceed $150,000,000 and (ii) the sum of (A) the
aggregate LC Exposure of all Lenders, (B) the aggregate principal amount of all
Dollar Loans made by all Lenders, (C) the Equivalent Amount at any time of the
aggregate principal amount of all Foreign Currency Loans made by all Lenders
and (D) the aggregate principal amount of all Competitive Loans made by all
Lenders, shall not exceed the combined Commitments in effect at any time.

 

(c)                                  Expiration
Date.  Each Letter of Credit shall expire at or
prior to the close of business on the earlier of (i) the expiration date
requested in the LC Request and (ii) the date that is five Business Days
prior to the Maturity Date.

 

(d)                                 Participations.  By the issuance or incorporation of a Letter
of Credit (or an amendment to a Letter of Credit increasing the amount thereof)
pursuant to Section 2.11(b) and without any further action on the part of
the Issuing Bank or the Lenders, the Issuing Bank hereby grants to each Lender,
and each Lender hereby acquires from the Issuing Bank, a participation in such
Letter of Credit equal to such Lender’s Pro Rata Share of the aggregate amount
available to be drawn under such Letter of Credit.  In consideration and in furtherance of the
foregoing, each Lender hereby absolutely and unconditionally agrees to pay to
the Administrative Agent, for the account of the Issuing Bank, in Dollars or in
the applicable Foreign Currency, as the case may be, such Lender’s Pro Rata
Share of each LC Disbursement made by the Issuing Bank and not reimbursed by
the Company on the date due as provided in paragraph (e) and (f) of this
Section, or of any reimbursement payment required to be refunded to the Company
for any reason.  Each Lender acknowledges
and agrees that its obligation to acquire participations pursuant to this
paragraph in respect of Letters of Credit is absolute and unconditional and
shall not be affected by any circumstance whatsoever (other than a withdrawal
of such Letter of Credit from this Agreement pursuant to Section 2.11(m)),
including any

 

40

 

amendment,
renewal or extension of any Letter of Credit or the occurrence and continuance
of a Default or reduction or termination of the Commitments, and that each such
payment shall be made without any offset, abatement, withholding or reduction
whatsoever.

 

(e)                                  Reimbursement
of Dollar Letters of Credit.  If the Issuing Bank
shall make any LC Disbursement in respect of a Dollar Letter of Credit issued
for the account of the Company or any of its Subsidiaries, the Company shall
reimburse such LC Disbursement by paying to the Administrative Agent an amount
in Dollars equal to such LC Disbursement not later than the LC Requisite Time;
provided that, if such LC Disbursement is not less than $5,000,000, the Company
may, subject to the conditions to borrowing set forth herein, request in
accordance with Section 2.01 and 2.02 that such payment be financed with a
Dollar LIBOR Loan or Base Rate Loan in an equivalent amount and, to the extent
so financed, the Company’s obligation to make such payment shall be discharged
and replaced by the resulting Dollar LIBOR Loan or Base Rate Loan.

 

(f)                                    Reimbursement
of Foreign Currency Letters of Credit.  If the Issuing Bank
shall make any LC Disbursement in respect of a Foreign Currency Letter of
Credit, the Company shall reimburse such LC Disbursement by paying to the
Administrative Agent an amount in the applicable Foreign Currency equal to such
LC Disbursement not later than the LC Requisite Time; provided that, if the
Equivalent Amount of such LC Disbursement is not less than $5,000,000, the
Company may, subject to the conditions to borrowing set forth herein, request
in accordance with Section 2.01 and 2.02 that such payment be financed
with a Foreign Currency Loan to the Company or any eligible Foreign Borrower
(whether or not an account party under the Foreign Currency Letter of Credit),
bearing interest at Adjusted IBOR for such Foreign Currency in an equivalent
amount and, to the extent so financed, the Company’s obligation to make such
payment shall be discharged and replaced by the resulting Foreign Currency
Loan.

 

(g)                                 Payment by
Lenders. If
the Company fails to make payment as provided in paragraph (e) and (f) of this
Section when due, the Administrative Agent shall notify each Lender of the
applicable LC Disbursement, the payment then due from the Company in respect
thereof and such Lender’s Pro Rata Share thereof.  Promptly following receipt of such notice,
each Lender shall pay to the Administrative Agent in Dollars or in the
applicable Foreign Currency, as the case may be, its Pro Rata Share of the
payment then due from the Company, in the same manner as provided in
Section 2.09 with respect to Loans made by such Lender (and the terms and
conditions of Section 2.09 shall apply in the same manner to all the
payment obligations of the Lenders), and the Administrative Agent shall
promptly pay to the Issuing Bank the amounts so received by it from the
Lenders.  Promptly following receipt by
the Administrative Agent of any payment from the Company pursuant to this
paragraph, the Administrative Agent shall distribute such payment to the
Issuing Bank or, to the extent that Lenders have made payments pursuant to this
paragraph to reimburse the Issuing Bank, then to such Lenders and the Issuing
Bank as their interests may appear.  Any
payment made by a Lender pursuant to this paragraph to reimburse the Issuing
Bank for any LC Disbursement (other

 

41

 

than the
funding of Dollar LIBOR Loans or Base Rate Loans as contemplated in paragraph
(e) above or the funding of Foreign Currency Loans as contemplated in paragraph
(f) above) shall not constitute a Loan and shall not relieve the Company of its
obligation to reimburse such LC Disbursement.

 

(h)                                 Obligations
Absolute.  The Company’s obligation to reimburse LC
Disbursements as provided in paragraph (e) and (f) of this Section shall
be absolute, unconditional and irrevocable, and shall be performed strictly in
accordance with the terms of this Agreement under any and all circumstances
whatsoever and irrespective of (i) any lack of validity or enforceability of
any Letter of Credit or this Agreement, or any term or provision therein, (ii)
any draft or other document presented under a Letter of Credit proving to be
forged, fraudulent or invalid in any respect or any statement therein being
untrue or inaccurate in any respect, (iii) payment by the Issuing Bank under a
Letter of Credit against presentation of a draft or other document that does
not comply with the terms of such Letter of Credit, or (iv) any other event or
circumstance whatsoever, whether or not similar to any of the foregoing, that
might, but for the provisions of this Section, constitute a legal or equitable
discharge of, or provide a right of setoff against, the Company’s obligations
hereunder.  Neither the Administrative
Agent, the Lenders nor the Issuing Bank, nor any of their Related Parties,
shall have any liability or responsibility by reason of or in connection with
the issuance, incorporation, transfer or withdrawal of any Letter of Credit or
any payment or failure to make any payment thereunder (irrespective of any of
the circumstances referred to in the preceding sentence), or any error,
omission, interruption, loss or delay in transmission or delivery of any draft,
notice or other communication under or relating to any Letter of Credit
(including any document required to make a drawing thereunder), any error in
interpretation of technical terms or any consequence arising from causes beyond
the control of the Issuing Bank; provided that the foregoing shall not be
construed to excuse the Issuing Bank from liability to the Company to the
extent of any direct damages (as opposed to consequential damages, claims in
respect of which are hereby waived by the Company to the extent permitted by
applicable law) suffered by the Company that are caused by the Issuing Bank’s
failure to exercise care when determining whether drafts and other documents
presented under a Letter of Credit comply with the terms thereof.    The parties hereto expressly agree that, in
the absence of gross negligence or willful misconduct on the part of the
Issuing Bank (as finally determined by a court of competent jurisdiction), the
Issuing Bank shall be deemed to have exercised care in each such
determination.  In furtherance of the
foregoing and without limiting the generality thereof, the parties agree that,
with respect to documents presented which appear on their face to be in
substantial compliance with the terms of a Letter of Credit, the Issuing Bank
may, in its sole discretion, either accept and make payment upon such documents
without responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and make payment upon such
documents if such documents are not in strict compliance with the terms of such
Letter of Credit.

 

(i)                                     Disbursement
Procedures.  The Issuing Bank shall, promptly following
its receipt thereof, examine all documents purporting to represent a demand for

 

42

 

payment
under a Letter of Credit.  The Issuing
Bank shall promptly notify the Administrative Agent and the Company by
telephone (confirmed by telecopy) of such demand for payment and whether the
Issuing Bank has made or will make an LC Disbursement thereunder; provided that
any failure to give or delay in giving such notice shall not relieve the
Company of its obligation to reimburse the Issuing Bank and the Lenders with
respect to any such LC Disbursement.

 

(j)                                     Interim
Interest.  If the Issuing Bank shall make any LC
Disbursement, then, unless the Company shall reimburse such LC Disbursement in
full on the date such LC Disbursement is made, the unpaid amount thereof shall
bear interest, for each day from and including the date such LC Disbursement is
made to but excluding the date that the Company reimburses such LC
Disbursement, (i) in the case of a LC Disbursement with respect to a Dollar
Letter of Credit, at the rate per annum then applicable to Base Rate Loans and
(ii) in the case of a LC Disbursement with respect to a Foreign Currency Letter
of Credit, at the rate per annum then applicable to Foreign Currency Loans in
the applicable Foreign Currency with an Interest Period of one month (with the
first such Interest Period beginning on the date such LC Disbursement was
made); provided that, in each case (i) and (ii), if the Company fails to
reimburse such LC Disbursement on the Business Day after such reimbursement is
due pursuant to paragraph (e) and (f) of this Section, then
Section 2.06(c) shall apply. 
Interest accrued pursuant to this paragraph shall be for the account of
the Issuing Bank, except that interest accrued on and after the date of payment
by any Lender pursuant to paragraph (g) of this Section to reimburse the
Issuing Bank shall be for the account of such Lender to the extent of such
payment.

 

(k)                                  Currencies.  Amounts due under this Agreement in respect of any Letter of Credit
shall be deemed paid for the purposes of this Agreement only, in the case of
Dollar Letters of Credit, to the extent paid in Dollars or, in the case of
Foreign Currency Letters of Credit, to the extent paid in the applicable
Foreign Currency, except to the extent expressly provided otherwise in this
Agreement.  If the Administrative Agent
receives any payment in respect of any Letter of Credit in any currency other
than the currency of such Letter of Credit, (including upon enforcement of or
collection of a judgment), the Administrative Agent may in its sole discretion
return such payment to the payor or convert such payment to the currency of
such Letter of Credit and apply the net proceeds to payment of amounts due in
respect of such Letter of Credit in accordance with this Agreement, provided that (i) amounts due in respect
of such Letter of Credit shall be deemed to have been paid only to the extent
of the net proceeds, if any, so applied by the Administrative Agent and (ii)
the Administrative Agent shall have no liability to any Credit Party, Lender or
any other Person arising out of or relating to such conversion of funds or the
exchange rate utilized in connection therewith, in each case except to the
extent of the Administrative Agent’s own gross negligence or willful
misconduct.

 

(l)                                     Replacement
of the Issuing Bank.  The Issuing Bank may be replaced at any time
by written agreement among the Company, the Administrative

 

43

 

Agent, the
replaced Issuing Bank and the successor Issuing Bank.  The Administrative Agent shall notify the
Lenders of any such replacement of the Issuing Bank.  At the time any such replacement shall become
effective, the Company shall pay all unpaid fees accrued for the account of the
replaced Issuing Bank pursuant to Section 2.07(c).  From and after the effective date of any such
replacement, (i) the successor Issuing Bank shall have all the rights and
obligations of the Issuing Bank under this Agreement with respect to Letters of
Credit to be issued or incorporated thereafter and (ii) references herein
to the term “Issuing Bank” shall be deemed to refer to such successor or to any
previous Issuing Bank, or to such successor and all previous Issuing Banks, as
the context shall require.  After the
replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall
remain a party hereto and shall continue to have all the rights and obligations
of an Issuing Bank under this Agreement with respect to Letters of Credit
issued by it prior to such replacement, but shall not be required to issue
additional Letters of Credit.

 

(m)                               Withdrawal of Outstanding Letters of Credit from
Agreement.  The Company may,
with the consent of the Issuing Bank issuing such Letter of Credit, which
consent may be given or withheld in its sole discretion, elect to have any
undrawn Letter of Credit issued hereunder no longer deemed to be a Letter of
Credit outstanding hereunder.  The
Company may make such election by delivering to the Administrative Agent a
Notice of Letter of Credit Withdrawal, signed by the Company and the Issuing
Bank, in the form attached as Exhibit F, whereupon such letter of credit shall
cease to be Letter of Credit for all purposes hereof.

 

(n)                                 Collateralization of LC Overage. If for
any reason the LC Exposure exceeds $150,000,000, then upon request of the
Requisite Lenders, the Company shall deposit in an account with the
Administrative Agent, in the name of the Administrative Agent and for the
benefit of the Lenders, an amount in cash in Dollars equal to the LC Overage as
of the date of such request, which amount shall be held by the Administrative
Agent as collateral for the performance by the Company of its reimbursement
obligations pursuant to Sections 2.11(e) and (f). The Administrative Agent (i)
may invest the balance in such account in such short-term instruments in the
manner and to the extent the Administrative Agent deems consistent with the use
of such funds as collateral for the performance of the Company’s obligations,
(ii) shall apply the balance in such account to pay any reimbursement
obligations that arise pursuant to Section 2.11(e) and (f) from time to
time (with any reimbursement obligation payable in a Foreign Currency satisfied
by the conversion of funds in such account in such manner at such an exchange
rate as determined by the Administrative Agent) and (iii) upon request of the
Company from time to time, shall pay to the Company such amount as the
Administrative Agent determines to be the excess of the balance in such account
over the LC Overage. All investment and reinvestment of funds deposited with
the Administrative Agent pursuant to this Section 2.11(n) shall be made at
the Company’s risk and expense.  Interest
or profits, if any, on such investments shall accumulate in such account. If
the maturity of the Loans has been accelerated (but subject to the consent of
Lenders with LC Exposure representing greater than 51% of the total LC
Exposure), the balance held by

 

44

 

the Administrative Agent may be applied to satisfy
other obligations of the Company under this Agreement.

 

ARTICLE III

 

TAXES, YIELD PROTECTION AND
ILLEGALITY

 

Section 3.01.  Taxes.  Each payment of any amount payable by any
Borrower under this Agreement or any other Loan Document shall be made free and
clear of, and without reduction by reason of, any Applicable Taxes.  To the extent that any Borrower is obligated
by any Requirement of Law to make any deduction or withholding on account of
Applicable Taxes from any amount payable to any Lender under this Agreement,
such Borrower shall (i) make such deduction or withholding and pay the
same to the relevant Governmental Authority and (ii) pay such additional
amount to that Lender as is necessary to result in that Lender’s receiving a
net after-Applicable Tax amount equal to the amount to which that Lender would
have been entitled under this Agreement absent such deduction or
withholding.  If a Lender shall become
aware that receipt of such a payment resulted in an excess payment or credit to
that Lender on account of such Applicable Taxes, that Lender shall promptly
refund such excess to such Borrower.  In
addition, if any Governmental Authority imposes any penalties, interest or
other liabilities on any Lender by reason of any Borrower failing to deduct or
withhold sufficient amounts on account of Applicable Taxes, or otherwise, such
Borrower shall indemnify such Lender against such penalties, interest or other
liabilities; provided,  however, that
such Borrower shall not be obligated to indemnify any Lender for such amounts
to the extent arising from such Lender’s failure to act in good faith in
promptly notifying such Borrower thereof within 45 days from the date on
which such Lender became aware of such penalties, interest or other
liabilities.  Payment by any Borrower
under this Section shall be made within 30 days from the date any
Lender makes written demand for indemnification hereunder, which demand shall
set forth in reasonable detail the calculation of the amount being requested
from such Borrower.  If a Lender shall
become aware that it is entitled to receive a refund or credit from a relevant
Governmental Authority directly attributable to Applicable Taxes as to which it
has been indemnified by any Borrower pursuant to this Section, it shall
promptly notify such Borrower of the availability of such refund or credit and
shall, within 30 days after receipt of a request by such Borrower (whether as a
result of notification that it has made to such Borrower or otherwise), make a
claim to such Governmental Authority for such refund or credit at such
Borrower’s expense so long as making such a claim is not inconsistent with such
Lender’s internal policies and is not disadvantageous to such Lender.

 

Section 3.02.  Illegality.

 

(a)                                  If
any Lender shall determine that the introduction of any Requirement of Law
after the date hereof, or any change in any Requirement of Law or in the
interpretation or administration thereof after the date hereof, has made it
unlawful,

 

45

 

or that any central bank or other Governmental
Authority has asserted after the date hereof that it is unlawful, for such
Lender or its Lending Office to make IBOR Loans, then, on notice thereof by
such Lender to the Company (with a copy to the Administrative Agent), the
obligation of such Lender to make IBOR Loans shall be suspended until such
Lender shall have notified the Company (with a copy to the Administrative
Agent) that the circumstances giving rise to such determination no longer exist; provided, that, if the designation of an
alternative branch or lending office of the Lender will permit the Lender to
make or maintain such IBOR Loans, the Lender will designate such alternative
branch or lending office, subject to its determination that such designation is
not disadvantageous to such Lender.

 

(b)                                 If
any Lender shall determine that it is unlawful to maintain any IBOR Loan, the
applicable Borrower shall prepay in full all IBOR Loans then outstanding,
together with interest accrued thereon, either on the last day of the Interest
Period thereof if such Lender may lawfully continue to maintain such IBOR Loans
to such day, or immediately, if the Lender may not lawfully continue to
maintain such IBOR Loans, together with any amounts required to be paid in
connection therewith pursuant to Section 3.05.

 

Section 3.03.  Increased
Costs and Reduction of Return. 
If any Lender shall determine that, due to either (i) the introduction
of or any change (other than any change by way of imposition of or increase in
reserve requirements included in the calculation of Adjusted IBOR) in or in the
interpretation of any law or regulation or (ii) the compliance with any
guideline or request from any central bank or other Governmental Authority
(whether or not having the force of law, provided that
if such guideline or request does not have the force of law, compliance
therewith is customary for banks regulated in a manner similar to such Lender),
after the date hereof, there shall be any increase in the cost to such Lender
of agreeing to make or making, funding or maintaining any Loans, then the
Company shall be liable for, and shall from time to time, within 10 Business
Days after demand therefor by such Lender, pay to such Lender additional
amounts as are sufficient to compensate such Lender for such increased costs; provided, however, that, if the
designation of an alternative branch or lending office of the Lender will avoid
or reduce the amount of such increased costs, the Lender will designate such
alternative branch or lending office, subject to its determination that such
designation is not disadvantageous to such Lender.

 

Section 3.04.  Capital
Adequacy.  If any Lender shall
determine that (a) the introduction after the date hereof of any Capital
Adequacy Regulation, (b) any change after the date hereof in any Capital
Adequacy Regulation, (c) any change after the date hereof in the
interpretation or administration of any Capital Adequacy Regulation by any
central bank or other Governmental Authority charged with the interpretation or
administration thereof, or (d) compliance by such Lender (or its Lending
Office) or any corporation controlling such Lender, with any Capital Adequacy
Regulation; affects or would affect the amount of capital required or expected
to be maintained by such Lender or any corporation controlling such Lender and
(taking into consideration such Lender’s

 

46

 

or such corporation’s policies with respect to capital
adequacy and such Lender’s desired return on capital) determines that the
amount of such capital is increased as a consequence of its Commitments, Loans,
credits or obligations under this Agreement, then, within 10 Business Days
after demand of such Lender, the Company shall upon demand pay to such Lender,
from time to time as specified by such Lender, additional amounts sufficient to
compensate such Lender for such increase; provided,
however, that, if the designation of an alternative branch or
lending office of the Lender will avoid or reduce such increased amount the
Lender will designate such alternative branch or lending office, subject to its
determination that such designation is not disadvantageous to such Lender.

 

Section 3.05.  Breakfunding
Costs.  Each Borrower agrees
to reimburse each Lender and to hold each Lender harmless from any loss or
expense which such Lender may sustain or incur as a consequence of:
(a) the failure of such Borrower to make any payment or prepayment of
principal of any IBOR Loan (including payments made after any acceleration
thereof); (b) the failure of such Borrower to Borrow, Continue or Convert
an IBOR Loan after such Borrower has given a Request for Extension of Credit,
(c) if caused by a Credit Party or as a result of any acceleration of the Loans
by reason of a Default or Event of Default, the prepayment of an IBOR Loan on a
day which is not the last day of the Interest Period with respect thereto, or
(d) if caused by a Credit Party or required by the Requisite Lenders pursuant
to Section 2.02(d), the Conversion of any Dollar LIBOR Loan to a Base Rate
Loan or the replacement of any Foreign Currency Loan with a Foreign Currency
Loan with an Interest Period of one  month;
including any such loss or expense arising from the liquidation or reemployment
of funds obtained by it to maintain its IBOR Loans hereunder or from fees
payable to terminate the deposits from which such funds were obtained.  Solely for purposes of calculating amounts
payable by any Borrower to a Lender under this Section, each IBOR Loan (and
each related reserve, special deposit or similar requirement) shall be
conclusively deemed to have been funded at Adjusted IBOR used in determining
Adjusted IBOR for such IBOR Loan by a matching deposit or other borrowing in
the relevant currency in the interbank deposit market for a comparable amount
and for a comparable period, whether or not such IBOR Loan is in fact so
funded.

 

Section 3.06.  Inability
to Determine Rates.

 

If the Requisite Lenders
shall have advised the Agent of the Requisite Lenders’ determination that for
any reason adequate and reasonable means do not exist for ascertaining Adjusted
IBOR for any requested Interest Period with respect to a proposed IBOR Loan or
that Adjusted IBOR for any requested Interest Period with respect to a proposed
IBOR Loan does not adequately and fairly reflect the cost to such Lender of
funding such Loan, the Administrative Agent will forthwith give notice of such
determination to the Company. 
Thereafter, the obligation of the Lenders to make or maintain IBOR
Loans, as the case may be, hereunder shall be suspended until the Requisite
Lenders revoke such notice in writing to the Company and the Administrative
Agent; provided, however,
that no outstanding IBOR Loan shall be terminated prior to

 

47

 

the expiration of the
Interest Period unless required by law. 
Upon receipt of such notice, any Borrower may revoke any Request for
Extension of Credit then submitted by it. 
If the Company does not revoke such notice, any Dollar Loans requested
in such notice shall be made, Converted or Continued as Base Rate Loans instead
of Dollar LIBOR Loans.

 

Section 3.07.  Matters
Applicable to all Requests for Compensation.

 

(a)                                  No
Borrower shall be required to compensate any Lender under Section 3.03 or
3.04 for amounts allocable to any period more than 30 days prior to the
date that such Lender initially notifies such Borrower that it intends to claim
compensation under such Sections; provided, however, that if such claim relates to any cost or increase
that has been retroactively imposed upon such Lender, such Borrower shall be
required to compensate such Lender for amounts allocable to the period since
the date such cost or increase was so imposed upon such Lender, provided that such Lender notifies such Borrower that it
intends to claim such compensation within 60 days of such retroactive cost
or increase having been imposed.

 

(b)                                 The
Administrative Agent and any Lender shall provide reasonable detail to the
applicable Borrower regarding the manner in which the amount of any payment to
the Administrative Agent or that Lender under this Article III has been
determined, concurrently with demand for such payment.  The Administrative Agent’s or any Lender’s
determination of any amount payable under this Article III shall be
conclusive in the absence of manifest error.

 

(c)                                  For
purposes of calculating amounts payable under this Article III any Loans
shall be deemed to have been funded at the underlying applicable interest rate
set forth in the definition thereof whether or not such Loans was, in fact, so
funded.

 

(d)                                 All
obligations of any Borrower under this Article III shall survive
termination of the Commitments and payment in full of all Loans.

 

(e)                                  Upon
(i) any Borrower becoming obligated for any taxes with respect to any
Lender pursuant to Section 3.01, (ii) any Lender making a claim for
compensation under Section 3.03 or Section 3.04, or (iii) any
Lender invoking Section 3.06, such Lender, upon not less than
10 Business Days’ Requisite Notice from the applicable Borrower (with a
copy to the Administrative Agent), shall execute and deliver a Notice of
Assignment and Acceptance covering that Lender’s Pro Rata Share in favor of
such Eligible Assignee as such Borrower may designate, subject to payment in
full by such Eligible Assignee of all principal, interest, compensation, fees
and other amounts owing to such Lender through the date of assignment,
including without limitation all amounts owing under this
Article III.  Upon the removal of
any Lender, it shall be released from all obligations and liabilities under any
Loan Document.  An assignment pursuant to
this Section shall be governed by the provisions of Section 10.05
other than the Minimum Amount limitation therein contained.  Alternatively, the Company may,

 

48

 

upon 10 Business Days’ notice to the Administrative
Agent (who shall notify each Lender) reduce the combined Commitments by an
amount equal to that Lender’s Pro Rata Share (and, for this purpose, no Minimum
Amounts shall apply), and in connection therewith, deliver to the
Administrative Agent for the account of such Lender, the amounts, described in
the first sentence above and release such Lender from its Pro Rata Share.

 

ARTICLE IV

 

CONDITIONS

 

Section 4.01.  Conditions
Precedent to Effective Date.

 

(a)                                  The
effectiveness of this Agreement is subject to the condition that the Administrative
Agent shall have received on or before the Effective Date all of the following,
in form and substance reasonably satisfactory to J.P. Morgan Securities Inc.,
JPMorgan Chase Bank, Salomon Smith Barney Inc. and all Requisite Lenders:

 

(i)                                     Credit Agreement.  This Agreement executed by the Company, the
Administrative Agent, Requisite Lenders and the Issuing Bank;

 

(ii)                                  Guaranty.  The Guaranty executed by the Company and the
Administrative Agent.

 

(iii)                               Notes. 
If requested by a Lender, Notes executed by the Company in favor of such
Lender;

 

(iv)                              Resolutions; Incumbency of the Company.  (A) Copies of the resolutions of the board of
directors of the Company approving and authorizing the execution, delivery and
performance by the Company of the Agreement and the other Loan Documents to be
delivered by the Company hereunder, and authorizing the borrowing of the Loans,
certified as of the Effective Date by the Secretary or an Assistant Secretary
of the Company and (B) a certificate of the Secretary or Assistant
Secretary of the Company (x) certifying the names and true signatures of
the officers of the Company authorized to execute, deliver and perform the Loan
Documents to be delivered by the Company hereunder, and (y) designating the
officers to be deemed Responsible Officers under this Agreement, and certifying
the names and true signature of such Responsible Officers;

 

(v)                                 Articles of Incorporation; By-Laws and Good Standing
of the Company.  Each of the
following documents: (A) the articles or certificate of incorporation of
the Company as in effect on the Effective Date, certified by the Secretary of
State of the state of incorporation of the Company as of a recent date, and the
bylaws of the Company as in effect on the Effective Date, certified by the Secretary
or Assistant Secretary of the Company as of the Effective Date; and

 

49

 

(B) a good standing
certificate for the Company from the Secretary of State of Delaware as of a
recent date;

 

(vi)                              Opinion of Counsel.  An opinion of counsel for the Company and
addressed to the Administrative Agent and the Lenders dated as of the Effective
Date substantially in the form of Exhibit H;

 

(vii)                           Officer’s Certificate.  A certificate of a Responsible Officer dated
the Effective Date certifying that (A) the representations and warranties
contained in Article V are true and correct in all material respects,
(B) no Default or Event of Default has occurred and is continuing, and
(C) there has occurred since January 31, 2004, no event or
circumstance that could reasonably be expected to result in a Material Adverse
Effect;

 

(viii)                        Other Documents.  Such other approvals, opinions or documents
as J.P. Morgan Securities Inc., JPMorgan Chase Bank,  Salomon Smith Barney  Inc. and the Lenders may reasonably request
by notice to the Company prior to the Effective Date;

 

(ix)                                Payment of Attorney’s Costs.  All Attorney Costs of the Administrative
Agent in connection with the preparation of the Loan Documents payable pursuant
to Section 10.04, and invoiced to the Company prior to the initial
Extension of Credit under this Agreement, shall have been paid.

 

Section 4.02.  Any
Extensions of Credit.  The
obligation of each Lender to make any Extension of Credit (other than a Foreign
Currency Loan to a Foreign Borrower) and of the Issuing Bank to issue any
Letter of Credit, are subject to the satisfaction of the following conditions
precedent on the relevant Credit Date:

 

(a)                                  Request for Extension of Credit.  The Administrative Agent shall have timely
received a duly completed (i) Request for Extension of Credit by Requisite
Notice by the Requisite Time or (ii) LC Request by Requisite Notice by the LC
Requisite Time;

 

(b)                                 Continuation of Representations and Warranties.  The representations and warranties made by
the Company contained in Article V shall be true and correct in all
material respects on and as of such Credit Date with the same effect as if made
on and as of such date, except where such representations and warranties
expressly relate to an earlier date;

 

(c)                                  No Existing Default.  No Default or Event of Default shall exist or
shall result from such Extension of Credit or issuance of such Letter of
Credit.

 

50

 

Each Request for
Extension of Credit or LC Request shall constitute a representation and
warranty by the Company, as of the date of each such request and as of the
Credit Date that the conditions in this Section 4.02 are satisfied.

 

Section 4.03.  Foreign
Currency Loans.

 

(a)                                  The
effectiveness of any Foreign Borrower Joinder Agreement is subject to the
condition that the Administrative Agent shall have received on or prior to the
date of effectiveness thereof (the “Joinder
Effective Date”) all of the following, in form and substance reasonably
satisfactory to the Administrative Agent:

 

(i)                                     Foreign Borrower Joinder Agreement.  A Foreign Borrower Joinder Agreement executed
by the Company and the applicable Foreign Borrower;

 

(ii)                                  Notes. 
If requested by a Lender, Notes executed by such Foreign Borrower in
favor of such Lender.

 

(iii)                               Resolutions, Incumbency of Foreign Borrower.  (A)Copies of the resolutions of the board of directors of such
Foreign Borrower approving and authorizing the execution, delivery and
performance by such Foreign Borrower of the Foreign Borrower Joinder Agreement
and other Loan Documents to be delivered by such Foreign Borrower hereunder,
and authorizing the borrowing of the Foreign Currency Loans, certified as of
the date of the borrowing of the initial Foreign Currency Loan by the Secretary
or an Assistant Secretary of such Foreign Borrower and (B) a certificate of the
Secretary or Assistant Secretary of such Foreign Borrower (x) certifying the
names and true signatures of the officers of such Foreign Borrower authorized
to execute, deliver and perform the Foreign Borrower Joinder Agreement and
other Loan Documents to be delivered by the Foreign Borrower hereunder, and (y)
designating the officers to be deemed Responsible Officers under this
Agreement, and certifying the names and true signatures of such Responsible
Officers.

 

(iv)                              Articles of Incorporation; By-Laws and Good Standing
of Foreign Borrower.  Each of
the following documents: (A) the articles or certificate of incorporation
of such Foreign Borrower as in effect on the Joinder Effective Date, certified
by an appropriate government agency or similar body of the jurisdiction of
incorporation of such Foreign Borrower as of a recent date, and the bylaws of
such Foreign Borrower as in effect on the Joinder Effective Date, certified by
the Secretary or Assistant Secretary of such Foreign Borrower as of the Joinder
Effective Date; and (B) a good standing certificate for such Foreign
Borrower as of a recent date in form and substance satisfactory to the Administrative
Agent;

 

51

 

(v)                                 Opinion of Counsel.  An opinion of counsel for such Foreign
Borrower in form and substance acceptable to the Administrative Agent and
addressed to the Administrative Agent and the Lenders;

 

(vi)                              Other Documents.  Such other approvals, opinions or documents
as the Administrative Agent may reasonably request by notice to such Foreign
Borrower prior to the Joinder Effective Date;

 

(vii)                           Payment of Attorney’s Costs.  All Attorney Costs of the Administrative
Agent in connection with such Foreign Loan payable pursuant to
Section 10.04, and invoiced to such Foreign Borrower prior to the date of
initial borrowing of the Foreign Currency Loan under this Agreement, shall have
been paid.

 

(b)                                 The
obligation of each Lender to make any Foreign Currency Loan to a Foreign
Borrower is subject to effectiveness of a Foreign Borrower Joinder Agreement in
respect of the applicable Foreign Borrower and the satisfaction of the
following conditions precedent on the relevant Credit Date:

 

(i)                                     Request for Extension of Credit.  The Administrative Agent shall have timely
received a duly completed Request for Extension of Credit by the applicable
Foreign Borrower for such Foreign Currency Loan by Requisite Notice by the
Requisite Time, signed by the Company in acknowledgement of its guaranty of
such Foreign Currency Loan pursuant to this Agreement;

 

(ii)                                  Continuation of Representations and Warranties.  The representations and warranties made by
the Credit Parties contained in Article V shall be true and correct in all
material respects on and as of such Credit Date with the same effect as if made
on and as of such date, except where such representations and warranties
expressly relate to an earlier date;

 

(iii)                               No Existing Default.  No Default or Event of Default shall exist or
shall result from such Extension of Credit.

 

Each Request for
Extension of Credit for a Foreign Currency Loan to a Foreign Borrower shall
constitute a representation and warranty by each Credit Party, as of the date
of each such Request and as of the applicable Credit Date that the conditions
in this Section 4.03 are satisfied.

 

52

 

ARTICLE V

 

REPRESENTATIONS
AND WARRANTIES

 

The Company and, solely
to the extent such representation and warranty relates to such Foreign Borrower
or its Subsidiaries, each Foreign Borrower represents and warrants to the
Administrative Agent and the Lenders that:

 

Section 5.01.  Corporate
Existence and Power.  Each
Credit Party and each of its corporate Subsidiaries: (a) is a corporation
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation; (b) has the corporate power and
authority and all governmental licenses, authorizations, consents and approvals
to own its assets, carry on its business and execute, deliver, and perform its
obligations, if any, under, the Loan Documents; (c) is duly qualified as a
foreign corporation, licensed and in good standing under the laws of each
jurisdiction where its ownership, lease or operation of Property or the conduct
of its business requires such qualification, except where the failure to be so
qualified or in good standing would not have a Material Adverse Effect; and
(d) is in compliance with every Requirement of Law except where such
noncompliance would not have a Material Adverse Effect.  Each Foreign Borrower is, directly or
indirectly through one or more intermediaries, wholly-owned by the Company; and
no Foreign Borrower is organized under the laws of any State of the United
States of America or in the District of Columbia.

 

Section 5.02.  Corporate
Authorization; No Contravention. 
The execution, delivery and performance by each Credit Party of each
Loan Document to which it is a party, have been duly authorized by all
necessary corporate action, and do not and will not: (a) contravene the
terms of any of its Organization Documents; (b) conflict with or result in
any breach or contravention of, or the creation of any Lien under, any document
evidencing any material Contractual Obligation to which it is a party or any
order, injunction, writ or decree of any Governmental Authority to which it or
its Property is subject; or (c) violate any Requirement of Law applicable
to it.

 

Section 5.03.  Governmental
Authorization.  No approval,
consent, exemption, authorization, or other action by, or notice to, or filing
with, any Governmental Authority is necessary or required in connection with
the execution, delivery or performance by any Credit Party of any Loan Document
to which it is a party, other than routine filings required to be made by it in
the Ordinary Course of Business after the date hereof.

 

Section 5.04.  Binding
Effect.  Each Loan Document to
which any Credit Party is a party constitutes the legal, valid and binding
obligations of each such Credit Party, enforceable against it in accordance
with their respective terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, or similar laws affecting the enforcement of
creditors’ rights generally or by equitable principles relating to
enforceability.

 

53

 

Section 5.05.  Litigation.  Except as disclosed on Schedule 5.05,
there are no actions, suits, investigations, proceedings, claims or disputes
pending or to the best of the company’s knowledge, threatened, at law, in
equity, in arbitration or before any Governmental Authority, against the
Company, its Subsidiaries or any of their respective Properties which: (a) purport
to affect or pertain to this Agreement, or any other Loan Document, or any of
the Transactions; or (b) have a reasonable possibility of an adverse
decision which would have a Material Adverse Effect.  No injunction, writ, temporary restraining
order or any order of any nature has been issued by any court or other
Governmental Authority against any Credit Party purporting to enjoin or
restrain the execution, delivery and performance of this Agreement or any other
Loan Document, or directing that the Transactions not be consummated as herein
or therein provided.

 

Section 5.06.  No Event
of Default.

 

(a)                                  No
Event of Default exists or would result from the incurring of any Obligations
by any Credit Party.

 

(b)                                 Except
as disclosed on Schedule 5.06, neither the Company nor any of its
Subsidiaries is in default under or with respect to any Contractual Obligation
in any respect which, individually or together with all such defaults, would
reasonably be expected to have a Material Adverse Effect.

 

Section 5.07.  ERISA
Compliance.

 

(a)                                  Schedule 5.07
lists all Plans maintained or sponsored by the Company or to which it is
obligated to contribute, and separately identifies Plans intended to be
Qualified Plans and Multiemployer Plans. 
Each Plan other than a Multiemployer Plan is in compliance, and, with
respect to each Multiemployer Plan, the Company has no knowledge that such
Multiemployer Plan is not in compliance, in all material respects with the
applicable provisions of ERISA, the Code and other Federal or applicable state
law that is not preempted by ERISA.  Each
Qualified Plan has been determined by the Internal Revenue Service (“IRS”) to qualify under Section 401 of
the Code, and the trusts created thereunder have been determined to be exempt
from tax under the provisions of Section 501 of the Code, and to the best
knowledge of the Company nothing has occurred which would cause the loss of
such qualification or tax-exempt status.

 

(b)                                 There
is no outstanding liability (excluding PBGC premiums due but not delinquent
under Section 4001 of ERISA) under Title IV of ERISA with respect to any
Plan maintained or sponsored by the Company or any ERISA Affiliate (as to which
the Company is or may reasonably be expected to be liable), nor with respect to
any Plan to which the Company or any ERISA Affiliate (wherein the Company is or
may be liable) contributes or is obligated to contribute, which would
reasonably be expected to have a Material Adverse Effect.  None of the Qualified Plans has Unfunded
Pension

 

54

 

Liabilities as to which the Company is or may be
liable, and which would reasonably be expected to have a Material Adverse
Effect.

 

(c)                                  No
ERISA Event has occurred or is reasonably expected to occur with respect to any
Plan maintained or sponsored by the Company or to which the Company is
obligated to contribute and as to which the Company is or may reasonably be
expected to be liable, and which would reasonably be expected to have a
Material Adverse Effect.  There are no
pending or, to the best knowledge of the Company, threatened claims, actions or
lawsuits, other than routine claims for benefits in the usual and ordinary
course, asserted or instituted against (i) any Plan maintained or
sponsored by the Company or its assets, (ii) any member of the Controlled
Group with respect to any Qualified Plan of the Company, or (iii) any
fiduciary with respect to any Plan for which the Company may be directly or
indirectly liable, through indemnification obligations or otherwise which in
each case would reasonably be expected to have a Material Adverse Effect.  The Company has not transferred any Unfunded
Pension Liability outside of the Controlled Group or otherwise engaged in a
transaction that could be subject to Section 4069 or 4212(c) of ERISA
which has a reasonable likelihood of having a Material Adverse Effect.

 

Section 5.08.  Regulations
T, U and X.  Neither any of
the Letters of Credit outstanding hereunder nor the proceeds of any Loan
hereunder will be used, in whole or in part, to purchase or carry, or to extend
credit to others for the purpose of purchasing or carrying, any Margin Stock in
violation of Regulations T, U and X.

 

Section 5.09.  Taxes.  Each Credit Party and its Subsidiaries have
filed all Federal and other material tax returns and reports required to be
filed, and have paid all Federal and other taxes, assessments, fees and other
governmental charges levied or imposed upon them or their Properties, income or
assets otherwise due and payable, except those which are being contested in
good faith by appropriate proceedings and for which adequate reserves have been
provided in accordance with GAAP.

 

Section 5.10.  Financial
Condition.

 

(a)                                  The
audited consolidated financial statements of financial condition of the Company
and its Subsidiaries, and the related consolidated statements of operations,
shareholders’ equity and cash flows (i) as of and for the Fiscal Year
ended January 31, 2004, and (ii) as of and for the fiscal quarter and the
portion of the fiscal year ended by April 30, 2004:  (A) were prepared in accordance with
GAAP consistently applied throughout the period covered thereby, except as
otherwise expressly noted therein; and (B) are complete and accurate in
all material respects and fairly present, in all material respects, the
financial condition of the Company and its consolidated subsidiaries as of the
date thereof and results of operations for the period covered thereby.

 

(b)                                 Since
January 31, 2004, there has been no Material Adverse Effect.

 

55

 

(c)                                  Each
Foreign Borrower is “solvent” within the meaning given such term or similar
terms under laws applicable to such Person, if any, prohibiting such Person
from borrowing the Loan from the Lenders requested by or outstanding to such
Person or prohibiting the Lenders from making such Loan to such Person (or any
such laws that limit or restrict the Lenders’ rights to enforce their rights
and remedies under both this Agreement and the Guaranty) on account of such
Person’s financial condition at the time such Loan is made.

 

Section 5.11.  Environmental
Matters.  To the knowledge of
the Responsible Officers of the Company, the on-going operations of the Company
and each of its Subsidiaries comply in all respects with all Environmental
Laws, except such non-compliance which would not reasonably be likely to have a
Material Adverse Effect.  To the
knowledge of the Responsible Officers of the Company, the Company and each of
its Subsidiaries have obtained all licenses, permits, authorizations and
registrations required under any Environmental Law (“Environmental Permits”)
necessary for its ordinary course operations, all such Environmental Permits
are in good standing, and the Company and each of its Subsidiaries are in
compliance with all material terms and conditions of such Environmental
Permits, except where the failure to obtain or maintain such Environmental
Permits or such noncompliance would not be reasonably likely to have a Material
Adverse Effect.

 

Section 5.12.  Subsidiaries.  As of the Effective Date, the Company has no
Subsidiaries other than those specifically disclosed on Schedule 5.12.

 

Section 5.13.  Insurance.  The material real Properties of the Company
and its Subsidiaries are insured with financially sound and reputable insurance
companies (except to the extent self-insurance is permitted pursuant to
Section 6.06), in such amounts, with such deductibles and covering such
risks as are customarily carried by companies engaged in similar businesses and
owning similar Properties in localities where the Company or such Subsidiary
operates.

 

Section 5.14.  Full
Disclosure.  The Company has made
available to the Lenders all material agreements, instruments and corporate or
other restrictions to which it or any of its Subsidiaries is subject and all
reports or other filings made by the Company under the Exchange Act or
Securities Act, and disclosed, through the reports and other filings made by
the Company under the Exchange Act or Securities Act or otherwise, all other
matters known to it that, individually or in the aggregate, could reasonably be
expected to result in a Material Adverse Effect.  Neither the Information Memorandum nor any of
the reports, financial statements, certificates or other information certified
as being true and correct by or on behalf of the Company to the Administrative
Agent or any Lender in connection with the negotiation of this Agreement or
delivered hereunder (as modified or supplemented by other information so
certified) contains any untrue statement of a material fact or omits to state
any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that, with
respect to projected financial

 

56

 

information,
the Company represents only that such information was prepared in good faith
based upon assumptions believed to be reasonable at the time.

 

Section 5.15.  Public
Utility Holding Company Act; Investment Company Act.  Neither the Company nor any of its
Subsidiaries are a “holding company”, or a “subsidiary company” of a “holding
company”, within the meaning of the Public Utility Holding Company Act of 1935,
as amended.  The Company is not and is
not required to be registered as an “investment company” under the Investment
Company Act of 1940.

 

Section 5.16.  Title to
Properties.

 

(a)                                  The
Company and each of its Subsidiaries has good and marketable title to, or valid
leasehold interests in, all real Property necessary or used in the ordinary
conduct of its business, except for Liens permitted by Section 7.01 and
for such defects in title as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

(b)                                 The Company and each of its
Subsidiaries owns, or is licensed to use, all trademarks, tradenames,
copyrights, patents and other intellectual property material to its business,
and the use thereof by the Company and its Subsidiaries does not infringe upon
the rights of any other Person, except for any such infringements that,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect.

 

Section 5.17.  Specially Designated
Nationals and Blocked Persons List. 
None of the Borrower, Subsidiaries of the Borrower or Affiliates of the
Borrower are identified on the Specially Designated Nationals and Blocked
Persons List maintained by the Office of Foreign Assets, Department of the
Treasury, and/or on any other similar list maintained by the Office of Foreign
Assets Control pursuant to any authorizing statute, executive order or
regulation or is a person with whom a citizen of the United States is
prohibited to engage in transactions by any trade embargo, economic sanction or
other prohibition of United States law, regulation or Executive Order of the
President of the United States.

 

ARTICLE VI

 

AFFIRMATIVE COVENANTS

 

So long as any principal
of, or interest on, any Loan or fee due hereunder remains unpaid, or any
portion of the Commitments remains in force:

 

Section 6.01.  Financial
Statements.  The Company shall
deliver to the Administrative Agent, with sufficient copies for each Lender or
via electronic image:

 

57

 

(a)                                  as
soon as available, but not later than 120 days after the end of each Fiscal
Year, a copy of the audited consolidated balance sheet of the Company and its
Subsidiaries as at the end of such year and the related statements of income
and cash flows for such Fiscal Year, setting forth in each case in comparative
form the figures for the previous year, and accompanied by the opinion of
Deloitte & Touche LLP or another nationally-recognized independent public
accounting firm which report shall state that such consolidated financial
statements present fairly, in all material respects, the financial position of
the Company and its Subsidiaries for the periods indicated in conformity with
GAAP applied on a basis consistent with prior years.  Such opinion shall not be qualified or
limited because of a restricted or limited examination by such accountant of
any material portion of the Company’s or any Subsidiary’s records; and

 

(b)                                 as
soon as available, but not later than 60 days after the end of each of the
first three Fiscal Quarters of each year, a copy of the unaudited consolidated
balance sheet of the Company and its Subsidiaries as of the end of such quarter
and the related consolidated statements of income and cash flows for the period
commencing on the first day and ending on the last day of such quarter, setting
forth the financial position and the results of operations of the Company and
its Subsidiaries in conformity with GAAP applied on a basis consistent with
prior years, subject to changes resulting from audit and normal year-end
adjustments.

 

Section 6.02.  Certificates;
Other Information.  The
Company shall deliver to the Administrative Agent, with sufficient copies for
each Lender or via electronic image:

 

(a)                                  concurrently
with the delivery of the financial statements referred to in Sections 6.01(a)
and 6.01(b) a Compliance Certificate signed by a Responsible Officer; and

 

(b)                                 promptly,
such additional business, financial, corporate affairs and other information in
form and detail satisfactory to the Agent and the Requisite Lenders as the
Administrative Agent, at the request of any Lender, may from time to time
reasonably request.

 

Section 6.03.  Notices.  Promptly upon a Responsible Officer of any
Credit Party becoming aware of the same, such Credit Party shall promptly
notify the Administrative Agent (who shall notify each Lender)

 

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

 

(b)                                 of
any dispute, litigation, investigation, proceeding or suspension which may
exist at any time between such Credit Party or any of its Subsidiaries and any
Governmental Authority or any Person which would reasonably be expected to have
a Material Adverse Effect;

 

58

 

(c)                                  upon,
but in no event later than 10 days after, a Responsible Officer becoming aware
of (i) any and all enforcement, cleanup, removal or other governmental or
regulatory actions instituted, completed or threatened against the Company, any
of its Subsidiaries or any of their respective Properties pursuant to any
applicable Environmental Laws, and (ii) any other material Environmental
Claims, which in the case of clauses (i) and (ii) would reasonably be
expected to have a Material Adverse Effect;

 

(d)                                 upon,
but in no event later than 10 days after, any ERISA Event that would reasonably
be expected to have a Material Adverse Effect, together with (i) a copy of
any notice with respect to such ERISA Event that may be required to be filed
with the PBGC and (ii) any notice delivered by the PBGC to the Company or any
member or its Controlled Group with respect to such ERISA Event;

 

(e)                                  any
public announcement of any change in the Pricing Ratings; and

 

(f)                                    of
any material change in accounting policies or financial reporting practices by
the Company or any of its Subsidiaries and the specific effects of any such
change on the Company or any of its Subsidiaries unless any such changes are
required to be made by companies generally in response to rules of the
Securities and Exchange Commission, the Financial Accounting Standards Board
(FASB) or any other similar governmental agency or other organization and the
effects of any such change are disclosed by the Company in any reports or other
filings made under the Exchange Act.

 

Each notice pursuant to
this Section shall be accompanied by a written statement by a Responsible
Officer of the Company setting forth details of the occurrence referred to
therein, and stating what action (if any is required) the Company proposes to
take with respect thereto.

 

Section 6.04.  Preservation
of Corporate Existence, Etc. 
Each Credit Party
shall, and shall cause its Significant Subsidiaries to, (a) preserve and
maintain in full force and effect its corporate existence and good standing
under the laws of its state or jurisdiction of incorporation and (b) preserve
and maintain in full force and effect all rights, privileges, qualifications,
permits, licenses and franchises necessary or desirable in the normal conduct
of its business the non-preservation of which would reasonably be expected to
have a Material Adverse Effect; provided that
nothing herein shall prevent to the extent not otherwise prohibited by the
provisions of Section 7.02 or 7.03, a consolidation or merger of the
Company.

 

Section 6.05.  Maintenance
of Property.  Each Credit
Party shall, and shall cause each of its Significant Subsidiaries to, maintain
and preserve all its Property which is used or useful in its business in good
working order and condition, ordinary wear and tear excepted, in such Credit
Party’s reasonable judgment the non-maintenance or non-preservation of which
would reasonably be expected to have a Material Adverse Effect;

 

59

 

provided that nothing in this
Section shall require the making of any repair or replacement of or to any
particular Property that would not be required in the exercise of sound
business judgment.

 

Section 6.06.  Insurance.  Each Credit Party shall, and shall cause each
of its Subsidiaries to, maintain with financially sound and reputable
independent insurers, insurance with respect to its Properties and business
against loss or damage of the kinds customarily insured against by Persons
engaged in the same or similar business, of such types and in such amounts as
are customarily carried under similar circumstances by such other Persons;
including workers’ compensation insurance, public liability and Property and
casualty insurance; provided that
such Credit Party or any of its Subsidiaries may self-insure to the extent that
it maintains adequate reserves therefor and self-insurance is customary and
prudent in its business judgment.

 

Section 6.07.  Compliance
with Laws.  Each Credit Party
shall, and shall cause each of its Subsidiaries to, comply in all material
respects with any Requirement of Law of any Governmental Authority having
jurisdiction over it or its business (including the Federal Fair Labor
Standards Act), except such Requirement of Law the non-compliance with which
would not be reasonably expected to have a Material Adverse Effect.

 

Section 6.08.  Inspection
of Property and Books and Records. 
Each Credit Party shall, and shall cause each of its Subsidiaries to,
maintain proper books of record and account, in which full, true and correct
entries shall be made of all financial transactions and matters involving the
assets and business of such Credit Party and such Subsidiaries.  Each Credit Party shall permit, and shall
cause each of its Subsidiaries to permit, representatives and independent
contractors of the Administrative Agent or any Lender to visit and inspect any
of their respective Properties, to examine their respective corporate,
financial and operating records, and make copies thereof or abstracts
therefrom, and to discuss their respective affairs, finances and accounts with
their respective directors, officers, and independent public accountants (provided that such Credit Party may, if it chooses, be
present at any such discussions) at such reasonable times during normal
business hours and as often as may be reasonably desired, upon reasonable
advance notice to such Credit Party; provided that
the foregoing shall be subject to compliance with applicable security
regulations of any Governmental Authority and shall not require the Company to
permit inspection of any Properties or financial or operating records to an
extent that would require such Credit Party or any of its Subsidiaries to
reveal any of its trade secrets, research data or proprietary information which
its management in good faith believes to be irrelevant to this Agreement.

 

Section 6.09.  Environmental
Laws.  Each Credit Party
shall, and shall cause each of its Subsidiaries to, conduct its operations and
keep and maintain its Properties in compliance with all Environmental Laws,
except for such non-compliance as would not reasonably be expected to have a
Material Adverse Effect.

 

60

 

Section 6.10.  Use of
Proceeds.  The Credit Parties shall use the proceeds for
working capital, capital expenditures and other general corporate purposes of
the applicable Borrower and its Subsidiaries not in contravention of any
Requirement of Law.

 

Section 6.11.  Regulatory Approvals.  Each Credit Party shall, and shall cause each
of its subsidiaries to, maintain all material licenses, permits, authorizations
and regulatory approvals necessary to own and operate facilities and to comply
with all applicable laws and regulations, except for such non-maintenance or
non-compliance as would not be reasonably expected to have a Material Adverse
Effect.

 

Section 6.12.  Transactions
with Officers, Directors and Affiliates.

 

(a)                                  No
Credit Party shall, and each Credit Party shall cause each of its Subsidiaries
not to, engage in transactions with their respective officers and directors
other than on an arms-length basis.

 

(b)                                 Each
Credit Party shall, and shall cause each of its Subsidiaries to, exercise
reasonable business judgment in entering in transactions with their Affiliates.

 

ARTICLE VII

 

NEGATIVE COVENANTS

 

So long as any principal
of, or interest on, any Loan or fee due hereunder remains unpaid, or any
portion of the Commitments remains in force, the Company shall not, and shall
not permit any of its Subsidiaries to, directly or indirectly:

 

Section 7.01.  Liens,
Negative Pledges.  Make,
create, incur, assume or suffer to exist any Lien of any nature upon or with
respect to any of their respective Properties, whether now owned or hereafter
acquired, except:

 

(a)                                  Liens
securing Indebtedness and other obligations existing on the Effective Date,
and, in the case of Liens securing Indebtedness and other obligations in excess
of $1,000,000, set forth in Schedule 7.01;

 

(b)                                 Liens
consisting of judgment or judicial attachment liens, provided
that the enforcement of such Liens is effectively stayed and all such liens in
the aggregate at any time outstanding for the Company and its Subsidiaries do
not exceed $50,000,000;

 

(c)                                  Liens
securing obligations not exceeding $100,000,000 in the aggregate on the
assets of single purpose Subsidiaries;

 

(d)                                 Permitted
Liens;

 

61

 

(e)                                  Liens
in connection with Synthetic Leases permitted under Section 7.05;

 

(f)                                    (i) any Lien that replaces,
extends or renews any Lien securing any Indebtedness permitted hereunder, provided
such replacement, extension or renewal Lien shall not encumber any additional
Property; (ii) any Lien on Property previously subject to a Synthetic Lease,
provided (A) such Lien secures Indebtedness used to refinance or replace such
Synthetic Lease and (B) the aggregate principal amount of such
Indebtedness does not exceed the fair value attributable to the Property
subject to the Synthetic Lease at the time such Property is being refinanced or
replaced; and

 

(g)                                 Liens
not otherwise permitted by the foregoing clauses of this Section provided that the aggregate amount of Indebtedness or other
obligations secured by such other Liens permitted by this subsection (g)
does not at any time exceed an amount equal to 7.5% of the Company’s
consolidated tangible assets, determined as of the end of the immediately
preceding fiscal quarter.

 

Section 7.02.  Dispositions.  Make any Disposition of its Property, whether
now owned or hereafter acquired, except for:

 

(a)                                  Permitted
Dispositions;

 

(b)                                 any
Disposition consisting of a merger or consolidation permitted pursuant to
Section 7.03; and

 

(c)                                  Dispositions
of assets not otherwise permitted hereunder which are made for fair market
value; provided,
that assets so disposed in any fiscal year contributed no more than 5% to the
Company’s consolidated revenues in the prior fiscal year; and providedfurther, that at the time of any such Disposition, no Event
of Default shall exist or shall result from such Disposition.

 

Section 7.03.  Mergers.  Merge or consolidate with or into any Person,
except:

 

(a)                                  any
Subsidiary may merge with the Company, provided that
the Company shall be the continuing or surviving corporation, or with any one
or more Subsidiaries of the Company;

 

(b)                                 any
Subsidiary of the Company may sell all or substantially all of its assets (upon
voluntary liquidation or otherwise), to the Company or a Subsidiary of the
Company; and

 

(c)                                  the
Company or any Subsidiary may merge with another corporation, provided that (i) with respect to a merger by the Company,
the Company shall be the surviving corporation, and (ii) with respect to a
merger by a Subsidiary, immediately after giving effect to such merger, the
surviving entity shall be a Subsidiary,

 

62

 

and in either case that after giving effect to such
merger, no Default or Event of Default shall then have occurred or exist.

 

Section 7.04.  Limitation
on Guaranty Obligations. 
Create, incur, assume, suffer to exist, or otherwise be liable with
respect to, any Guaranty Obligations, except for:

 

(a)                                  guaranties
of loans to employees for the purchase of capital stock of the Company not
exceeding $15,000,000 in aggregate principal amount outstanding at any time;

 

(b)                                 Guaranty
Obligations consisting of bid and performance bonds for the benefit of third
parties not exceeding $150,000,000 in aggregate principal amount at any time;

 

(c)                                  Ordinary
Course Guaranty Obligations; and

 

(d)                                 other
Guaranty Obligations not exceeding 7.5% of the Company’s consolidated tangible
assets.

 

The Guaranty Obligations
limited by this Section 7.04 shall not include claims for refunds or the
imposition of charges made by customers of the Company and its Subsidiaries
based on unsatisfactory work by the Company or any of its Subsidiaries in the
Ordinary Course of Business, except that such claims shall be included, and
shall be taken into account, with respect to the other covenants set forth in
this Article VII when recognized as liabilities on the Company’s balance
sheet in accordance with GAAP.

 

Section 7.05.  Synthetic
Leases.  Create, incur,
assume, suffer to exist, or otherwise be liable, directly or indirectly, with
respect to, any Synthetic Leases, except for Synthetic Leases related to
tangible Property having a value (determined at the time of each transaction)
not exceeding $250,000,000 in aggregate amount at any time.

 

Section 7.06.  Compliance
with ERISA.  To the extent an
event or condition specified in this Section has a reasonable likelihood
of having a Material Adverse Effect, (a) terminate any Plan subject to
Title IV of ERISA, (b) permit to exist any ERISA Event,
(c) enter into any new Plan or modify any existing Plan so as to increase
its obligations thereunder except in the Ordinary Course of Business or
(d) permit the existence of Unfunded Pension Liabilities.

 

Section 7.07.  Interest Coverage Ratio.  The Company shall
maintain an Interest Coverage Ratio of not less than 3.5 to 1.0 for each period
of four consecutive fiscal quarters, commencing with the four fiscal quarters
ended April 30, 2002.

 

Section 7.08.  Ratio of Consolidated Funded Debt to EBITDA.  The Company shall maintain a ratio of
Consolidated Funded Debt to EBITDA of not more than (a) 2.75 to 1.00 for each
period of four consecutive fiscal quarters, commencing with

 

63

 

the four
fiscal quarters ended April 30, 2002 and ending with the first fiscal
quarter ended April 30, 2004 and (b) 3.00 to 1.00 for each subsequent
period of four fiscal periods.

 

Section 7.09.  Accounting
Changes.  Make any significant
change in accounting treatment or reporting practices, except as required or
permitted by GAAP, or change the Fiscal Year of the Company or of any of its
Significant Subsidiaries.

 

Section 7.10.  Change in
Nature of Business.  Make any
material change in the nature of the business of the Company and its
Subsidiaries, taken as a whole.

 

Section 7.11.  Hedging
Agreements.  Enter into any
Hedging Agreement, other than Hedging Agreements entered into to hedge or
mitigate risks to which the Company or any of its Subsidiaries is exposed in
the conduct of its business or management of its assets or liabilities.

 

ARTICLE VIII

 

EVENTS OF DEFAULT
AND REMEDIES UPON EVENT OF DEFAULT

 

Section 8.01.  Events of
Default.  The existence or
occurrence of any one or more of the following events, whatever the reason
therefor and under any circumstances whatsoever, shall constitute an Event of
Default:

 

(a)                                  Non-Payment.  Any Credit Party fails to pay, (i) within one
day after the same shall become due any amount of principal of any Loan, or
(ii) within five days after the same shall become due, any interest on any
Loan, fee or any other amount payable hereunder or pursuant to any other Loan
Document; or

 

(b)                                 Representation or Warranty.  Any material representation or warranty by
any Credit Party made or deemed made herein, in any Loan Document, or which is
contained in any certificate, document or financial or other statement by any
Credit Party, any of its Subsidiaries, or their respective Responsible Officers,
furnished at any time under this Agreement, or in or under any Loan Document,
shall prove to have been incorrect in any material respect on or as of the date
made or deemed made; or

 

(c)                                  Specific Defaults.  Any Credit Party fails to perform or observe
any term, covenant or agreement contained in Section 6.04(a), or the
Company fails to perform or observe any term, covenant or agreement contained
in Section 7.03, 7.07 or 7.08; or

 

(d)                                 Other Defaults.  Any Credit Party fails to perform any other
term, covenant or agreement contained in any Loan Document not specifically
mentioned in this Section 8.01 and, such default shall continue unremedied
for a period of 30 days after notice by the Administrative Agent thereof; provided that if the default in question is capable of being
cured and throughout the grace period the Borrower has been diligent in

 

64

 

its pursuit of a remedy in respect of the default in
question and has notified the Administrative Agent on or prior to the
expiration of such grace period of the remedy and the actions being taken by
the Borrower, then the Borrower shall have an additional period of 30 days
to remedy such default; or

 

(e)                                  Cross Default.  Any of the Company, its Subsidiaries or any
other Credit Party (i) fail to make any payment in respect of any
Indebtedness (other than non-recourse Indebtedness) owing to any Person (other
than the Obligations hereunder) when due (whether by scheduled maturity,
required prepayment, acceleration, demand, or otherwise) having an aggregate
principal amount (including amounts owing to all creditors under any combined
or syndicated credit arrangement) of more than $35,000,000; or (ii) fail
to perform or observe any other condition or covenant, or any other event shall
occur or condition exist, under any agreement or instrument relating to any
such Indebtedness having an aggregate principal amount (including amounts owing
to all creditors under any combined or syndicated credit arrangement) of more than
$35,000,000, if the effect of such failure, event or condition is to cause, or
to permit the holder or holders of such Indebtedness or beneficiary or
beneficiaries of such Indebtedness (or a trustee or agent on behalf of such
holder or holders or beneficiary or beneficiaries) to cause such Indebtedness
to be declared to be due and payable prior to its stated maturity; or

 

(f)                                    Insolvency; Voluntary Proceedings.  Any Credit Party or Significant Subsidiary of
the Company, (i) ceases or fails to be solvent or generally fails to pay,
or admit in writing its inability to pay, its debts as they become due, subject
to applicable grace periods, if any, whether at stated maturity or otherwise;
(ii) voluntarily ceases to conduct its business in the ordinary course; (iii) commence
any Insolvency Proceeding with respect to itself; or (iv) take any action
to effectuate or authorize any of the foregoing; or

 

(g)                                 Involuntary Proceedings.  (i) Any involuntary Insolvency
Proceeding is commenced or filed against any Credit Party or Significant
Subsidiary of the Company, or any writ, judgment, warrant of attachment,
execution or similar process, in each case relating to an Insolvency
Proceeding, is issued or levied against a substantial part of any Credit
Party’s or any such Significant Subsidiary’s Properties, and any such
proceeding or petition shall not be dismissed, or such writ, judgment, warrant
of attachment, execution or similar process shall not be released, vacated or
fully bonded within 60 days after commencement, filing or levy; (ii) any
Credit Party or any Significant Subsidiary of the Company admits the material
allegations of a petition against it in any Insolvency Proceeding, or an order
for relief (or similar order under non-U.S. law) is ordered in any Insolvency
Proceeding; or (iii) any Credit Party or any Significant Subsidiary of the
Company acquiesces in the appointment of a receiver, trustee, custodian,
conservator, liquidator, mortgagee in possession (or agent therefor), or other
similar Person for itself or a substantial portion of its Property or business;
or

 

65

 

(h)                                 ERISA. 
Any of the following events or conditions occurs or exists which has a
reasonable likelihood of having a Material Adverse Effect: (i) the Company
or an ERISA Affiliate shall fail to pay when due, after the expiration of any
applicable grace period, any installment payment with respect to its withdrawal
liability under a Multiemployer Plan; (ii) the Company or an ERISA
Affiliate shall fail to satisfy its contribution requirements under
Section 412(c) (11) of the Code, whether or not it has sought a waiver
under Section 412(d) of the Code; (iii) an ERISA Event; (iv) the
IRS shall have determined that a Plan that is intended to be qualified under
Section 401(a) of the Code is not qualified; or (v) the occurrence of
any combination of events listed in clauses (iii) through (iv) that
involves a net increase in aggregate Unfunded Pension Liabilities and other
liabilities; or

 

(i)                                     Monetary Judgments.  One or more final (non-interlocutory)
judgments, orders or decrees shall be entered against any of the Company, any
of its Subsidiaries or any other Credit Party, involving in the aggregate a
liability (not fully covered by independent third-party insurance and for which
the relevant insurer has acknowledged liability) as to any single or related
series of transactions, incidents or conditions, of $35,000,000 or more, and
the same shall remain unsatisfied, unvacated and unstayed pending appeal for a
period of 30 days after the entry thereof or such later time as may be provided
for the filing of an appeal; or

 

(j)                                     Change in Control.  (i) Any Person (other than a Plan or
Plans) or two or more Persons (other than a Plan or Plans) acting in concert
shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of
the Securities and Exchange Commission under the Securities and Exchange Act of
1934, as amended), directly or indirectly, of securities of the Company (or
other securities convertible into such securities) representing 20% or more of
the combined voting power of all securities of the Company entitled to vote in
the election of directors, other than securities having such power only by
reason of the happening of a contingency; (ii) individuals who at the
beginning of any two year period constituted the Company’s Board of Directors
cease for any reason to constitute a majority of directors then in office; or
(iii) any Foreign Borrower ceases to be a Subsidiary of the Company at any time
when Foreign Currency Loans to such Foreign Borrower are outstanding.

 

Section 8.02.  Remedies
Upon Event of Default. 
Without limiting any other rights or remedies of the Administrative
Agent or the Lenders provided for elsewhere in this Agreement, or the other
Loan Documents, or by any Requirement of Law, or in equity, or otherwise:

 

(a)                                  Upon
the occurrence, and during the continuance, of any Event of Default other than
an Event of Default described in Section 8.01(f) or 8.01(g) in respect of
any Credit Party,

 

(i)                                     the
Requisite Lenders may request the Administrative Agent to, and the
Administrative Agent thereupon shall, terminate the Commitments and/or

 

66

 

declare all or any part
of the unpaid principal of all Loans, all interest accrued and unpaid thereon,
all obligations relating to the LC Exposure at such time and all other amounts
payable under the Loan Documents to be forthwith due and payable, whereupon the
same shall become and be forthwith due and payable, without protest,
presentment, notice of dishonor, demand or further notice of any kind, all of
which are expressly waived by such Credit Party; and

 

(ii)                                  on the Business Day that the
Company receives notice from the Administrative Agent or the Requisite Lenders
(or, if the maturity of the Loans has been accelerated pursuant to clause (i)
above, Lenders with LC Exposure representing 51% or more of the total LC
Exposure) demanding the deposit of cash collateral pursuant to this clause
(ii), the Company shall deposit in an account with the Administrative Agent, in
the name of the Administrative Agent and for the benefit of the Lenders, an
amount in cash equal to the LC Exposure as of such date, which amount shall be
applied as provided in Section 8.02(f).

 

(b)                                 Upon
the occurrence of any Event of Default described in Section 8.01(f) or
8.01(g) in respect of any Credit Party,

 

(i)                                     the
Commitments and all other obligations of the Administrative Agent or the
Lenders and all rights of any Credit Party under the Loan Documents shall
terminate without notice to or demand upon such Credit Party, which are
expressly waived by such Credit Party and the unpaid principal of all Loans,
all interest accrued and unpaid thereon, all obligations relating to the LC
Exposure at such time and all other amounts payable under the Loan Documents
shall be forthwith due and payable, without protest, presentment, notice of
dishonor, demand or further notice of any kind, all of which are expressly
waived by any Credit Party; and

 

(ii)                                  the Company shall forthwith
deposit in an account with the Administrative Agent, in the name of the
Administrative Agent and for the benefit of the Lenders, an amount in cash
equal to the LC Exposure, which amount shall be immediately due and payable, without
protest, presentment, notice of dishonor, demand or further notice of any kind,
all of which are expressly waived by any Credit Party, and shall be applied as
provided in Section 8.02(f).

 

(c)                                  Upon
the occurrence of any Event of Default, the Administrative Agent shall, at the
request of the Requisite Lenders, or may with the consent of the Requisite
Lenders, without notice to (except as expressly provided for in any Loan
Document) or demand upon any Credit Party, which are expressly waived by any Credit
Party (except as to notices expressly provided for in any Loan Document),
proceed to protect, exercise and enforce the rights and remedies of the
Administrative Agent and the Lenders under the Loan Documents against any
Credit Party and such other rights and remedies as are provided by Requirement
of Law or equity.

 

67

 

(d)                                 The
rights provided for in this Agreement and the other Loan Documents are
cumulative and are not exclusive of any other rights, powers, privileges or
remedies provided by law or in equity, or under any other instrument, document
or agreement not existing or hereafter arising.

 

(e)                                  The
order and manner in which the Lenders’ rights and remedies are to be exercised
shall be determined by the Requisite Lenders in their sole discretion, and all
payments received by the Administrative Agent and the Lenders, or any of them,
shall be applied first to the costs and expenses (including reasonable
Attorneys Costs incurred by the Administrative Agent and the Lenders), and
thereafter paid pro rata to the
Lenders in the same proportions that the aggregate Obligations owed to each
Lender under the Loan Documents bear to the aggregate Obligations owed under
the Loan Documents to all the Lenders, without priority or preference among the
Lenders.  Regardless of how each Lender
may treat payments for the purpose of its own accounting, for the purpose of
computing any Credit Party’s Obligations hereunder, payments shall be applied
first, to the costs and expenses of the Administrative Agent and the Lenders,
as set forth above, second, to the payment of accrued and unpaid interest due
under any Loan Documents to and including the date of such application
(ratably, and without duplication, according to the accrued and unpaid interest
due under each of the Loan Documents), and third, to the payment of all other
amounts (including principal and fees) then owing to the Administrative Agent
or the Lenders under the Loan Documents. 
No application of payments will cure any Event of Default, or prevent
acceleration, or continued acceleration, of amounts payable under the Loan
Documents, or prevent the exercise, or continued exercise, of rights or
remedies of the Lenders hereunder or thereunder or under any Requirement of Law
or in equity.

 

(f)                                    Cash collateral deposited with
the Administrative Agent upon the occurrence of an Event of Default pursuant to
clause (ii) of Section 8.02(a) or clause (ii) of Section 8.02(b)
shall be held by the Administrative Agent as collateral for the payment and
performance of the obligations of the Company under this Agreement.  The Administrative Agent shall have exclusive
dominion and control, including the exclusive right of withdrawal, over funds so
deposited and shall invest and reinvest such funds in short-term instruments in
the manner and to the extent the Administrative Agent deems consistent with the
use of such funds as collateral for the performance of the Company’s
obligations hereunder.  Other than any
interest earned on the investment or reinvestment of such funds in accordance
with the preceding sentence, all investment and reinvestment shall be made at
the Company’s risk and expense and the cash collateral deposited shall not bear
interest for the account of the company.  Interest
or profits, if any, on such investments shall accumulate in such account.  Moneys in such account shall be applied by
the Administrative Agent to reimburse the Issuing Bank for LC Disbursements for
which it has not been reimbursed and, to the extent not so applied, shall be
held for the satisfaction of the reimbursement obligations of the Company for
the LC Exposure at such time or, if the maturity of the Loans has been
accelerated (but subject to the consent of Lenders with LC Exposure
representing greater than 51% of the total LC Exposure), be applied to satisfy
other obligations of the Company under this Agreement.  If the

 

68

 

Company is
required to provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default, such amount (to the extent not applied as
aforesaid) shall be returned to the Company within three Business Days after
all Events of Default have been cured or waived.

 

ARTICLE IX

 

THE ADMINISTRATIVE AGENT

 

Section 9.01.  Appointment
and Authorization.  Subject to
Section 9.07, each Lender hereby 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 thereof or are reasonably incidental, as determined by the
Administrative Agent, thereto.  This
appointment and authorization is intended solely for the purpose of
facilitating the servicing of the Loans and does not constitute appointment of
the Administrative Agent as trustee for any Lender or as representative of any
Lender for any other purpose and, except as specifically set forth in the Loan
Documents to the contrary, the Administrative Agent shall take such action and
exercise such powers only in an administrative and ministerial capacity.

 

Section 9.02.  Administrative
Agent and Affiliates. 
JPMorgan Chase Bank (and each successor Administrative Agent) has the
same rights and powers under the Loan Documents as any other Lender and may
exercise the same as though it were not the Administrative Agent, and the term
“Lender” or “Lenders” includes JPMorgan Chase Bank in its individual
capacity.  JPMorgan Chase Bank (and each
successor Administrative Agent) and its Affiliates may accept deposits from,
lend money to and generally engage in any kind of banking, trust or other
business with any Credit Party, any Subsidiary thereof, or any Affiliate of any
Credit Party or any Subsidiary thereof, as if it were not the Administrative
Agent and without any duty to account therefor to the Lenders.  JPMorgan Chase Bank (and each successor
Administrative Agent) need not account to any other Lender for any monies
received by it for reimbursement of its costs and expenses as Administrative
Agent hereunder, or for any monies received by it in any other capacity.  The Administrative Agent shall not be deemed
to hold a fiduciary relationship with any Lender and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read
into this Agreement or otherwise exist against the Administrative Agent,
regardless of whether a Default or an Event of Default has occurred and is
continuing.

 

Section 9.03.  Lenders’
Credit Decisions.  Each Lender
agrees that it has, independently and without reliance upon the Administrative
Agent, any other Lender or the directors, officers, agents, employees or
attorneys of the Administrative Agent or of any other Lender, and instead in
reliance upon information supplied to it by or on behalf of the Company and
upon such other information as it has deemed appropriate, made its

 

69

 

own independent credit analysis and decision to enter
into this Agreement.  Each Lender also
agrees that it shall, independently and without reliance upon the
Administrative Agent, any other Lender or the directors, officers, agents,
employees or attorneys of the Administrative Agent or of any other Lender,
continue to make its own independent credit analyses and decisions in acting or
not acting under the Loan Documents.

 

Section 9.04.  Action by
Administrative Agent.

 

(a)                                  Absent
actual knowledge of the Administrative Agent of the existence of a Default, the
Administrative Agent may assume that no Default has occurred and is continuing,
unless the Administrative Agent (or the Lender that is then the Administrative
Agent) has received notice from any Credit Party stating the nature of the
Default or has received notice from a Lender stating the nature of the Default
and that such Lender considers the Default to have occurred and to be
continuing.

 

(b)                                 The
Administrative Agent has only those duties under the Loan Documents as are
expressly set forth therein.

 

(c)                                  Except
for any obligation expressly set forth in the Loan Documents and as long as the
Administrative Agent may assume that no Event of Default has occurred and is
continuing, the Administrative Agent may, but shall not be required to,
exercise its discretion to act or not act, except that the Administrative Agent
shall be required to act or not act upon the instructions of the Requisite
Lenders (or of all the Lenders, to the extent required by Section 10.01)
and those instructions shall be binding upon the Administrative Agent and all
the Lenders, provided that the Administrative
Agent shall not be required to act or not act if to do so would be contrary to
any Loan Document or to any applicable Requirement of Law or would result, in
the reasonable judgment of the Administrative Agent, in substantial risk of
liability to the Administrative Agent.

 

(d)                                 If
the Administrative Agent has received a notice specified in
subsection (a), the Administrative Agent shall immediately give notice
thereof to the Lenders and shall act or not act upon the instructions of the
Requisite Lenders, or of all the Lenders, as required hereunder, provided that the Administrative Agent shall not be required
to act or not act if to do so would be contrary to any Loan Document or to any
applicable Requirement of Law or would result, in the reasonable judgment of
the Administrative Agent, in substantial risk of liability to the
Administrative Agent, and except that if the Requisite Lenders, or all the
Lenders, if required hereunder, fail, for five Business Days after the receipt
of notice from the Administrative Agent, to instruct the Administrative Agent,
then the Administrative Agent, in its sole discretion, may act or not act as it
deems advisable for the protection of the interests of the Lenders.

 

(e)                                  The
Administrative Agent shall have no liability to any Lender for acting, or not
acting, as instructed by the Requisite Lenders, or all the Lenders, if required
hereunder, notwithstanding any other provision hereof.

 

70

 

Section 9.05.  Liability
of Administrative Agent. 
Neither the Administrative Agent nor any of its directors, officers,
agents, employees or attorneys shall be liable for any action taken or not
taken by them under or in connection with the Loan Documents, except for their
own gross negligence or willful misconduct. 
Without limitation on the foregoing, the Administrative Agent and its
directors, officers, agents, employees and attorneys:

 

(a)                                  May
treat any Lender as a Lender until the Administrative Agent receives notice of
the assignment or transfer thereof, in form satisfactory to the Administrative
Agent, signed by the payee, and may treat each Lender as the owner of that
Lender’s interest in the Obligations for all purposes of this Agreement until
the Administrative Agent receives notice of the assignment or transfer thereof,
in form satisfactory to the Administrative Agent, signed by that Lender.

 

(b)                                 May
consult with legal counsel (including in-house legal counsel), accountants
(including in-house accountants) and other professionals or experts selected by
it, or with legal counsel, accountants or other professionals or experts for
the Credit Parties and/or their Subsidiaries or the Lenders, and shall not be
liable for any action taken or not taken by it in good faith in accordance with
any advice of such legal counsel, accountants or other professionals or
experts.

 

(c)                                  Shall
not be responsible to any Lender for any statement, warranty or representation
made in any of the Loan Documents or in any notice, certificate, report,
request or other statement (written or oral) given or made in connection with
any of the Loan Documents.

 

(d)                                 Except
to the extent expressly set forth in the Loan Documents, shall have no duty to
ask or inquire as to the performance or observance by the Company or its
Subsidiaries of any of the terms, conditions or covenants of any of the Loan
Documents or to inspect the Property, books or records of the Company or its
Subsidiaries.

 

(e)                                  Will
not be responsible to any Lender for the due execution, legality, validity,
enforceability, genuineness, effectiveness, sufficiency or value of any Loan
Document, any other instrument or writing furnished pursuant thereto or in
connection therewith.

 

(f)                                    Will
not incur any liability by acting or not acting in reliance upon any Loan
Document, notice, consent, certificate, statement, request or other instrument
or writing believed by it to be genuine and signed or sent by the proper party
or parties.

 

(g)                                 Will
not incur any liability for any arithmetical error in computing any amount paid
or payable by any Credit Party or any Subsidiary or Affiliate thereof or paid
or payable to or received or receivable from any Lender under any Loan
Document, including, without limitation, principal, interest, Facility Fees,
Loans and other amounts;

 

71

 

provided  that, promptly upon discovery of such an
error in computation, the Administrative Agent, the Lenders and (to the extent
applicable) such Credit Party and/or its Subsidiaries or Affiliates shall make
such adjustments as are necessary to correct such error and to restore the
parties to the position that they would have occupied had the error not
occurred.

 

Section 9.06.  Indemnification.  Each Lender shall, ratably in accordance with
its Pro Rata Share (if the Commitments are then in effect) or in accordance
with its proportion of the aggregate outstanding Loans (if the Commitments have
then been terminated), indemnify and hold the Administrative Agent and its
Affiliates, directors, officers, agents, employees and attorneys harmless
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever (including, without limitation, Attorneys Costs that may be
imposed on, incurred by or asserted against it or them in any way relating to
or arising out of the Loan Documents (other than Loan losses incurred by reason
of the failure of any Credit Party to pay the Loans) or any action taken or not
taken by it as Administrative Agent thereunder, except such as result from its
own gross negligence or willful misconduct. 
Without limitation on the foregoing, each Lender shall reimburse the
Administrative Agent upon demand for that Lender’s Pro Rata Share of any
out-of-pocket cost or expense incurred by the Administrative Agent in
connection with the negotiation, preparation, execution, delivery, amendment,
waiver, restructuring, reorganization (including a bankruptcy reorganization),
enforcement or attempted enforcement of the Loan Documents, to the extent that
any Credit Party is required by Section 10.04 to pay that cost or expense
but fails to do so upon demand.  Nothing
in this Section 9.06 shall entitle the Administrative Agent to recover any
amount from the Lenders if and to the extent that such amount has theretofore
been recovered from the Company or any of its Subsidiaries.  To the extent that the Administrative Agent
is later reimbursed such cost or expense by any Credit Party or any of its
Subsidiaries, it shall return the amounts paid to it by the Lenders in respect
of such cost or expense.

 

Section 9.07.  Successor
Administrative Agent.  The Administrative
Agent may, and at the request of the Requisite Lenders shall, resign as
Administrative Agent upon 30 days’ notice to the Lenders and the Company.  If the Administrative Agent shall resign as
Administrative Agent under this Agreement, the Company shall appoint from among
the Lenders a successor Administrative Agent for the Lenders, unless an Event
of Default has occurred and is continuing, in which case such successor
administrative agent shall be selected from among the Lenders by the Requisite
Lenders.  If no successor Administrative
Agent is appointed prior to the effective date of the resignation of the
Administrative Agent, the Administrative Agent may appoint, after consulting
with the Lenders and the Company, a successor administrative agent from among
the Lenders.  Upon the acceptance of its
appointment as successor administrative agent hereunder, such successor
Administrative Agent shall succeed to all the rights, powers and duties of the
retiring Administrative Agent and the term “Administrative Agent” shall mean
such successor administrative agent and the retiring Administrative Agent’s
appointment, powers and duties as Administrative Agent shall be
terminated.  After any retiring

 

72

 

Administrative Agent’s resignation hereunder as
Administrative Agent, the provisions of this Article IX, and Sections
10.04 and 10.16 shall inure to its benefit as to any actions taken or omitted
to be taken by it while it was Administrative Agent under this Agreement.  If no successor administrative agent has
accepted appointment as Administrative Agent by the date which is 30 days
following a retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become
effective and the Lenders shall perform all of the duties of the Administrative
Agent hereunder until such time, if any, as a successor administrative agent is
appointed as provided for above.

 

Section 9.08.  No
Obligations of Credit Parties. 
Nothing contained in this Article IX shall be deemed to impose upon
any Credit Party any obligation in respect of the due and punctual performance
by the Administrative Agent of its obligations to the Lenders under any
provision of this Agreement, and, except as expressly provided in any Articles
of the Agreement other than this Article IX, no Credit Party shall have
liability to the Administrative Agent or any of the Lenders in respect of any
failure by the Administrative Agent or any Lender to perform any of its
obligations to the Administrative Agent or the Lenders under this
Agreement.  Without limiting the
generality of the foregoing, where any provision of this Agreement relating to
the payment of any amounts due and owing under the Loan Documents provides that
such payments shall be made by any Credit Party to the Administrative Agent for
the account of the Lenders, such Credit Party’s obligations to the Lenders in
respect of such payments shall be deemed to be satisfied upon the making of such
payments to the Administrative Agent in the manner provided by this Agreement.

 

Section 9.09.  Documentation
Agent; Syndication Agent. 
None of the Lenders identified on the facing page or signature pages of
this Agreement as Documentation Agent or Syndication Agent shall have any
right, power, obligation, liability or responsibility or duty under this
Agreement other than those applicable to all Lenders as such.  Without limiting the foregoing, none of the
Lenders so identified shall have or be deemed to have any fiduciary relations
with any Lender.  Each Lender
acknowledges that it has not relied, and will not rely, on any of the Lenders
so identified in deciding to enter into this Agreement or in taking any action
hereunder.

 

ARTICLE X

 

MISCELLANEOUS

 

Section 10.01.  Amendments;
Consents.  No amendment,
modification, supplement, extension, termination or waiver of any provision of
this Agreement or any other Loan Document, no approval or consent thereunder,
and no consent to any departure by any Credit Party therefrom, may in any event
be effective unless in writing signed by the Requisite Lenders (and, in the
case of any amendment, modification or supplement of or to any Loan Document to
which such Credit Party is a party, signed by such Credit Party and, in the
case of any amendment, modification or supplement

 

73

 

affecting the rights and duties of the Administrative
Agent, signed by the Administrative Agent), and then only in the specific
instance and for the specific purpose given; and, without the approval in
writing of each Lender affected thereby, no amendment, modification,
supplement, termination, waiver or consent may be effective:

 

(a)                                  To
decrease the principal of, or the amount of principal, principal prepayments or
the rate of interest payable on, any Loan, or to increase the amount of the
Commitment or the Pro Rata Share of such Lender, or to decrease the amount of
any Facility Fee payable to such Lender, or any other fee or amount payable to
such Lender under the Loan Documents or to waive an Event of Default consisting
of the failure of any Credit Party to pay when due principal, interest or any
Facility Fee;

 

(b)                                 To
postpone any date fixed for any payment of principal of, prepayment of principal
of or any installment of interest on, any Loan or any installment of any
Facility Fee, or to extend the term of the Commitments;

 

(c)                                  To
amend the provisions of the definition of “Requisite Lenders,” Article IV
or this Article;

 

(d)                                 To
release the Company from its Obligations under the Guaranty, to release any
Foreign Borrower from its obligations under any Foreign Borrower Joinder
Agreement in respect of outstanding Foreign Currency Loans; or

 

(e)                                  To
amend any provision of this Agreement that expressly requires the consent or
approval of all the Lenders.

 

Any amendment,
modification, supplement, termination, waiver or consent pursuant to this
Section shall apply equally to, and shall be binding upon, all the Lenders
and the Administrative Agent.

 

Section 10.02.  Notices.  Except as otherwise expressly provided in the
Loan Documents, all notices, requests, demands, directions and other
communications provided for therein shall be given by Requisite Notice and
shall be effective as follows:

 

74

 

	
  Mode
  of Delivery

  	
   

  	
  Effective on earlier of 

  actual receipt and:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Courier

  	
   

  	
  On scheduled delivery
  date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Facsimile

  	
   

  	
  When transmission
  complete

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Mail

  	
   

  	
  Fourth Business Day
  after deposit in U.S. mail

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Personal
  delivery

  	
   

  	
  When received

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telephone

  	
   

  	
  When answered

  	
   

  

 

provided,
however, that notice to the
Administrative Agent pursuant to Article II or IX shall not be effective
until actually received by the Administrative Agent.  The Administrative Agent and any Lender shall
be entitled to rely and act on any notice purportedly given by or on behalf of
any Credit Party even if such notice (i) was not made in a manner
specified herein, (ii) was incomplete, or (iii) was not preceded or
followed by any other notice specified herein or the terms of such notice as
understood by the recipient varied from any subsequent related notice provided
for herein.  The applicable Credit Party
shall indemnify the Administrative Agent and any Lender from any loss, cost,
expense or liability as a result of relying on any notice permitted herein.

 

Section 10.03.  No Waiver;
Cumulative Remedies.  No
failure to exercise and no delay in exercising, on the part of any Lender or
the Administrative Agent or the Issuing Bank, any right, remedy, power or
privilege hereunder, shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, remedy, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege.  The rights,
powers, privileges and remedies of the Administrative Agent, the Issuing Bank
and the Lenders provided herein or other Loan Document are cumulative and not
exclusive of any right, power, privilege or remedy provided by Requirement of
Law or equity.  The terms and conditions
of Article IX are inserted for the sole benefit of the Administrative
Agent, the Issuing Bank and the Lenders; the same may be waived in whole or in
part, with or without terms or conditions, in respect of any Loan without
prejudicing the Administrative Agent’s, the Issuing Bank’s or the Lenders’
rights to assert them in whole or in part in respect of any other Loan.

 

Section 10.04.  Costs and
Expenses.  The Company shall
pay, whether or not the Transactions shall be consummated:

 

(a)                                  all reasonable out-of-pocket
expenses incurred by the Administrative Agent and its Affiliates (including the
reasonable fees, charges and disbursements of counsel for the Administrative
Agent), J.P. Morgan Securities, Salomon

 

75

 

Smith
Barney  Inc. and Citicorp USA, Inc. in
connection with the syndication of the credit facilities provided for herein,
the preparation and administration of this Agreement or any amendments,
modifications or waivers of the provisions hereof (whether or not the
transactions contemplated hereby or thereby shall be consummated), and

 

(b)                                 all out-of-pocket expenses
incurred by the Administrative Agent or any Lender, including the fees, charges
and disbursements of any counsel for the Administrative Agent or any Lender, in
connection with the enforcement or protection of its rights in connection with
this Agreement after a Default or Event of Default, including its rights under
this Section, or in connection with Letters of Credit or Loans made hereunder,
including all such out-of-pocket expenses incurred during any workout,
restructuring or negotiations in respect of such Letters of Credit or Loans.

 

Section 10.05.  Binding
Effect; Assignment.

 

(a)                                  This
Agreement and the other Loan Documents to which each of the Credit Parties is a
party will be binding upon and inure to the benefit of each Credit Party, the
Administrative Agent, each of the Lenders, and their respective successors and
assigns, except that (i) no Credit Party may assign its rights hereunder or
thereunder or any interest herein or therein without the prior written consent
of all the Lenders, and (ii) no Lender may assign or transfer its rights
or obligations hereunder except in accordance with this Section.  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 Lender, but no such pledge shall release that Lender from its
obligations hereunder or grant to such Federal Reserve Lender the rights of a
Lender hereunder absent foreclosure of such pledge.

 

(b)                                 From
time to time following the Closing Date, each Lender may assign to one or more
assignees all or any portion of its Pro Rata Share; provided
that (i) so long as no Default or Event of Default has occurred and is
continuing such assignee shall be an Eligible Assignee and, if such assignee is
not then a Lender, an Affiliate of a Lender or a CLO, any such assignment shall
require the prior written consent of the Company, (ii) any such assignment
shall require the prior written consent of the Administrative Agent, (iii) any
such assignment shall require the written consent of the Issuing Bank, and (iv)
except in the case of an assignment to an Affiliate of the assigning Lender, to
a CLO administered or managed by the assigning Lender or 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 Pro Rata Share which is
equivalent to less than the Minimum Amount therefore.  No consent required by this
section 10.05(b) shall be unreasonably withheld or delayed; it being
understood that it shall not be deemed unreasonable to withhold such consent if
based solely on the desire to avoid the payment of additional costs or
taxes.  A copy of a Notice of Assignment
and Acceptance shall be delivered to the Administrative Agent with respect to
any assignment.  The effective date of
any such assignment shall be as specified in the Notice of Assignment and
Acceptance, but not earlier than the date which is five Business Days after the
date the

 

76

 

Administrative Agent has received the Notice of
Assignment and Acceptance.  Upon
acceptance by the Administrative Agent of such Notice Assignment and
Acceptance, the Eligible Assignee named therein shall be a Lender for all
purposes of this Agreement, with the Pro Rata Share therein set forth and, to
the extent of such Pro Rata Share, the assigning Lender shall be released from
its further obligations under this Agreement. 
Each Credit Party agrees that it shall execute and deliver upon request
(against delivery by the assigning Lender to such Credit Party of any Note) to
such assignee Lender, one or more Notes evidencing that assignee Lender’s Pro
Rata Share, and to the assigning Lender if requested, one or more Notes
evidencing the remaining balance Pro Rata Share retained by the assigning
Lender.

 

(c)                                  By
executing and delivering a Notice of Assignment and Acceptance, 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 Pro Rata Share 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 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 any Credit
Party or the performance by any Credit Party of the Obligations; (iii) it
has received a copy of this Agreement, together with copies of the most recent
financial statements delivered pursuant to Section 6.01 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 Acceptance;
(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)                                 After
receipt of a completed Notice of Assignment and Acceptance, and receipt of an
assignment fee of $3,500 from such Eligible Assignee, the Administrative Agent
shall, promptly following the effective date thereof, provide to the Company
and the Lenders a revised Schedule 10.02 giving effect thereto.

 

(e)                                  Each
Lender may from time to time grant participations to one or more banks or other
financial institutions (including another Lender) in a portion of its Pro Rata
Share; 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 banks or other financial institutions shall not be a Lender
hereunder for any purpose except, if the participation agreement so provides,
for the purposes of Article III but only

 

77

 

to the extent that the cost of such benefits to the
Company does not exceed the cost which the Company would have incurred in
respect of such Lender absent the participation, (iv) the Credit Parties,
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 shall not restrict
an increase in the Commitments or in the granting Lender’s Pro Rata Share, 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 or waivers of provisions of the Loan Documents other
than those which (A) extend the Maturity Date as to such participant or
any other date upon which any payment of money is due to such participant, (B) reduce
the rate of interest owing to such participant, any fee or any other monetary
amount owing to such participant or (C) reduce the amount of any
installment of principal owing to such participant.  A Lender granting a participation in
accordance with this clause (e) shall give Requisite Notice to the Company on
by executing and delivering a Notice of Participation no later than 5 Business
Days after the effective date of such participation.

 

Section 10.06.  Sharing of
Setoffs.  Each Lender
severally agrees that if it, through the exercise of any right of setoff,
banker’s lien or counterclaim against any Credit Party or otherwise, receives
payment of the Obligations held by it that is ratably more than all Extensions
of Credit (including Competitive Loans) made by any other Lender, through any
means, then, subject to any applicable Requirement of Law: (a) the Lender
exercising the right of setoff, banker’s lien or counterclaim or otherwise
receiving such payment shall purchase, and shall be deemed to have
simultaneously purchased, from the other Lenders a participation in the
Obligations held by the other Lenders and shall pay to the other Lenders a
purchase price in an amount so that the share of the Obligations held by each
Lender after the exercise of the right of setoff, banker’s lien or counterclaim
or receipt of payment shall be in the same proportion that existed prior to the
exercise of the right of setoff, banker’s lien or counterclaim or receipt of
payment; and (b) such other adjustments and purchases of participations
shall be made from time to time as shall be equitable to ensure that all of the
Lenders share any payment obtained in respect of the Obligations ratably in
accordance with each Lender’s share of the Obligations immediately prior to,
and without taking into account, the payment; provided
that, if all or any portion of a disproportionate payment obtained as a result
of the exercise of the right of setoff, banker’s lien, counterclaim or
otherwise is thereafter recovered from the purchasing Lender by such Credit
Party or any Person claiming through or succeeding to the rights of such Credit
Party, the purchase of a participation shall be rescinded and the purchase
price thereof shall be restored to the extent of the recovery, but without interest.  Each Lender that purchases a participation in
the Obligations pursuant to this Section shall from and after the purchase
have the right to give all notices, requests, demands, directions and other communications
under this Agreement with respect to the portion of the Obligations purchased
to the same extent as though the purchasing Lender were the original owner of
the Obligations purchased.  Each Credit
Party expressly consents to the foregoing arrangements and agree that any

 

78

 

Lender holding a participation in an Obligation so
purchased may, to the fullest extent permitted by any applicable Requirement of
Law, exercise any and all rights of setoff, banker’s lien or counterclaim with
respect to the participation as fully as if the Lender were the original owner
of the Obligation purchased.

 

Section 10.07.  Counterparts.  This Agreement may be executed by one or more
of the parties to this Agreement in any number of separate counterparts, each
of which, when so executed, shall be deemed an original, and all of said
counterparts taken together shall be deemed to constitute but one and the same
instrument.  A set of the copies of this
Agreement signed by all the parties shall be lodged with the Company and the
Administrative Agent.

 

Section 10.08.  Severability.  The illegality or unenforceability of any
provision of this Agreement or any instrument or agreement required hereunder
shall not in any way affect or impair the legality or enforceability of the
remaining provisions of this Agreement or any instrument or agreement required
hereunder.

 

Section 10.09.  No Third
Parties Benefited.  This
Agreement is made and entered into for the sole protection and legal benefit of
the Credit Parties, the Administrative Agent and the Lenders, and their
permitted successors and assigns, and no other Person shall be a direct or
indirect legal beneficiary of, or have any direct or indirect cause of action
or claim in connection with, this Agreement or any of the other Loan
Documents.  Neither the Administrative
Agent nor any Lender shall have any obligation to any Person not a party to
this Agreement or other Loan Documents.

 

Section 10.10.  Time.  Time is of the essence as to each term or
provision of this Agreement and each of the other Loan Documents.

 

Section 10.11.  GOVERNING
LAW AND JURISDICTION.

 

(a)                                  THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF
THE STATE OF NEW YORK.

 

(b)                                 ANY
LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT AND ANY OTHER LOAN
DOCUMENTS MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE
UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, COUNTY OF NEW YORK AND BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH CREDIT PARTY CONSENTS TO THE
NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. 
EACH CREDIT PARTY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
REQUIREMENT OF LAW, ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF
VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN

 

79

 

SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY
DOCUMENT RELATED HERETO.  EACH CREDIT
PARTY WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH
MAY BE MADE BY ANY OTHER MEANS PERMITTED BY NEW YORK LAW.

 

Section 10.12.  WAIVER OF
JURY TRIAL.  THE CREDIT
PARTIES, THE LENDERS AND THE ADMINISTRATIVE AGENT EACH WAIVE THEIR RESPECTIVE
RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING
OUT OF OR RELATED TO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS, OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING OR OTHER
LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR
ANY ADMINISTRATIVE AGENT-RELATED PERSON, PARTICIPANT OR ASSIGNEE, WHETHER WITH
RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE.  THE CREDIT PARTIES, THE LENDERS AND THE
ADMINISTRATIVE AGENT EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE
TRIED BY A COURT TRIAL WITHOUT A JURY. 
WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR
RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS
TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN
PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR THE
OTHER LOAN DOCUMENTS OR ANY PROVISION HEREOF OR THEREOF.  THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT AND THE
OTHER LOAN DOCUMENTS.

 

Section 10.13.  Entire
Agreement.  This Agreement,
together with the other Loan Documents, embodies the entire agreement and
understanding between the Credit Parties, the Administrative Agent and the Lenders,
and supersedes all prior or contemporaneous agreements and understandings of
such Persons, verbal or written, relating to the subject matter hereof and
thereof, and any prior arrangements made with respect to the payment by the
Credit Parties of (or any indemnification for) any fees, costs or expenses
payable to or incurred (or to be incurred) by or on behalf of the
Administrative Agent or any Lender.

 

Section 10.14.  Interpretation.  This Agreement is the result of negotiations
between and has been reviewed by counsel to the Administrative Agent, the
Lenders, the Company and other parties, and is the product of all parties
hereto.  Accordingly, this Agreement and
the other Loan Documents shall not be construed against the Administrative
Agent or any Lender merely because of the Administrative Agent’s or any
Lender’s involvement in the preparation of such documents and agreements.

 

80

 

Section 10.15.  Nature of
Lenders’ Obligations.  The
obligations of the Lenders hereunder are several and not joint or joint and
several.  Nothing contained in this
Agreement or any other Loan Document and no action taken by the Administrative
Agent or the Lenders or any of them pursuant hereto or thereto may, or may be deemed
to, make the Lenders a partnership, an association, a joint venture or other
entity, either among themselves or with any Credit Party or any Affiliate of
any Credit Party.  Each Lender’s
obligation to make any Loan pursuant hereto is several and not joint or joint
and several.  A default by any Lender
will not increase the Pro Rata Share attributable to any other Lender.  Any Lender not in default may, if it desires,
assume in such proportion as the nondefaulting Lenders agree the obligations of
any Lender in default, but is not obligated to do so.  The Administrative Agent agrees that it will
use its best efforts either to induce the other Lenders to assume the
obligations of a Lender in default or to obtain another Lender, reasonably
satisfactory to the Company, to replace such a Lender in default.

 

Section 10.16.  Indemnity;
Damage Waiver.

 

(a)                                  The Company shall indemnify
the Administrative Agent and each Lender, and each Related Party of any of the
foregoing Persons (each such Person being called an “Indemnitee”) against, and
hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including the fees, charges and disbursements
of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee
arising out of, in connection with, or as a result of (i) the execution or
delivery of this Agreement or any agreement or instrument contemplated hereby,
the performance by the parties hereto of their respective obligations hereunder
or the consummation of the Transactions or any other transactions contemplated
hereby, (ii) any Loan or the use of the proceeds therefrom, (iii) any exchange
or conversion of currencies in connection with Section 2.06 or otherwise, (iv)
any civil penalty or fine assessed by the Office of Foreign Assets Control,
Department of the Treasury, against the Administrative Agent or any Lender, and
all reasonable costs or expenses (including counsel fees and disbursements)
incurred in connection with the defense thereof, as a result of any violation
of the representations made in Section 5.17, (v) the issuance of any
Letter of Credit or (vi) the failure of the Issuing Bank to honor a drawing
under any Letter of Credit as a result of any act or omission, whether rightful
or wrongful, of any Governmental Authority, (vii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by any Credit
Party or any of its Subsidiaries, or any Environmental Liability related in any
way to any Credit Party or any of its Subsidiaries or (viii) any actual or
prospective claim, litigation, investigation or proceeding relating to any of
the foregoing, whether based on contract, tort or any other theory and
regardless of whether any Indemnitee is a party thereto; provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses resulted from the
gross negligence or willful misconduct of such Indemnitee.  As between the Company and the Issuing
Bank, the Company assumes all risks of the acts and omissions of, or misuse of
a Letter of Credit by, a beneficiary of such Letter of Credit.  In furtherance and not in limitation of

 

81

 

the foregoing, no Indemnitee shall be responsible for
any of the following:  (A) the form,
validity, sufficiency, accuracy, genuineness or legal effects of any documents
submitted by any party in connection with the request and application for and issuance
of any Letter of Credit, even if it should in fact prove to be in any or all
respects invalid, insufficient, inaccurate, fraudulent or forged; (B) the
validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign any Letter of Credit or rights or benefits
thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason whatsoever; (C) any failure of a
beneficiary of any Letter of Credit to comply with any condition of drawing
thereunder; (D) any errors, omissions, interruptions or delays in transmission
or delivery of any messages, by mail, cable, telegraph, telex or otherwise,
whether or not in cipher; (E) any error in interpretation; (F) any loss or
delay in the transmission or otherwise of any document required in order to
make a drawing under any Letter of Credit or of the proceeds thereof; (G) any
misapplication by a beneficiary of any Letter of Credit of the proceeds of any
drawing thereunder; or (H) any consequences arising from or related to events
or circumstances beyond the control of the Issuing Bank, including any act or
omission, whether rightful or wrongful, of any Governmental Authority.  In furtherance and not in limitation of the
specific provisions herein set forth, any action taken or omitted by the
Issuing Bank under or in connection with any Letter of Credit or related
certificates, if taken or omitted in good faith, shall not result in or give
rise to any liability of any Indemnitee to the Company; provided that the
foregoing shall not be construed to excuse the Issuing Bank from liability to
the Company to the extent of any direct damages (as opposed to consequential
damages, claims in respect of which are hereby waived by the Company to the extent
permitted by applicable law) suffered by the Company that are caused by the
Issuing Bank’s failure to exercise care when determining whether drafts and
other documents presented under a Letter of Credit comply with the terms
thereof.

 

(b)                                 The
Company shall indemnify the Administrative Agent and each Lender for funding
costs or funding losses (excluding loss of margin) if prepayment or conversion
of a IBOR Loan occurs prior to the end of an Interest Period, if caused or
requested by any Credit Party or if any Credit Party fails to consummate a IBOR
Loan because conditions precedent to borrowing or conversion are not satisfied.

 

Section 10.17.  Nonliability
of the Lenders.  Each Credit
Party acknowledges and agrees that the relationship between each Credit Party
and the Administrative Agent and the Lenders is, and shall at all times remain,
solely that of borrowers and lenders; neither the Administrative Agent nor the
Lenders shall under any circumstance be construed to be partners or joint
venturers of any Credit Party or its Affiliates; neither the Administrative
Agent nor the Lenders shall under any circumstance be deemed to be in a
relationship of confidence or trust or a fiduciary relationship with any Credit
Party or its Affiliates, or to owe any fiduciary duty to any Credit Party or
its Affiliates; neither the Administrative Agent nor the Lenders undertake or
assume any responsibility or duty to any Credit Party or its Affiliates to
select, review, inspect, supervise, pass judgment upon or inform such Credit
Party or its Affiliates of any matter in connection with its Property or the
operations of such Credit Party or its Affiliates;

 

82

 

each Credit Party and its Affiliates shall rely
entirely upon their own judgment with respect to such matters; and any review,
inspection, supervision, exercise of judgment or supply of information
undertaken or assumed by the Administrative Agent or the Lenders in connection
with such matters is solely for the protection of the Administrative Agent and
the Lenders and neither any Credit Party nor any other Person is entitled to
rely thereon.

 

Section 10.18.  Failure to
Charge Not Subsequent Waiver. 
Any decision by the Administrative Agent or any Lender not to require payment
of any interest (including Default Interest), fee, cost or other amount payable
under any Loan Document, or to calculate any amount payable by a particular
method, on any occasion shall in no way limit or be deemed a waiver of the
Administrative Agent’s or such Lender’s right to require full payment of any
interest (including Default Interest), fee, cost or other amount payable under
any Loan Document, or to calculate an amount payable by another method that is
not inconsistent with this Agreement, on any other or subsequent occasion.

 

Section 10.19.  Headings.  Section headings in this Agreement and
the other Loan Documents are included for convenience of reference only and are
not part of this Agreement or the other Loan Documents for any other purpose.

 

Section 10.20.  Foreign
Lenders and Participants. 
Each Lender, and each holder of a participation interest herein, that is
a “foreign corporation, partnership or trust” within the meaning of the Code
shall deliver to the Administrative Agent, (a) within 20 days after the
Closing Date, or (b) prior to accepting an assignment or receiving a
participation interest herein in respect of Dollar Loans, two duly signed
completed copies of either Form W-8BEN (relating to such Person and entitling
it to a complete exemption from withholding on all payments to be made to such
Person by any Credit Party pursuant to this Agreement) or Form W-8ECI (relating
to all payments to be made to such Person by any Credit Party pursuant to this
Agreement) of the United States Internal Revenue Service or such other evidence
(including, if reasonably necessary, Form W-8 or W-9) satisfactory to the
Company and the Administrative Agent that no withholding under the U.S. federal
income tax laws is required with respect to such Person.  Thereafter and from time to time, each such
Person shall (a) promptly submit to the Administrative Agent two such
additional duly completed and signed copies of one of such forms (or such
successor forms as shall be adopted from time to time by the relevant United
States taxing authorities) as may then be available under then current United
States laws and regulations to avoid, or such evidence as is satisfactory to
the Company and the Administrative Agent of any available exemption from,
United States withholding taxes in respect of all payments to be made to such
Person by the Company pursuant to this Agreement and (b) take such steps
as shall not be materially disadvantageous to it, in the reasonable judgment of
such Lender, and as may be reasonably necessary (including the re-designation
of its Lending Office, if any) to avoid any Requirement of Law that the Company
make any deduction or withholding for taxes from amounts payable to such
Person.  If such Person fails to timely
deliver the above forms or other documentation, then the Administrative Agent
may withhold from any

 

83

 

interest payment to such Person an amount equivalent
to the applicable withholding tax imposed by Sections 1441 and 1442 of the
Code, without reduction.  If any
Governmental Authority asserts that the Administrative Agent did not properly
withhold any tax or other amount from payments made in respect of such Person,
such Person shall indemnify the Administrative Agent therefor, including all
penalties and interest and costs and expenses (including reasonable Attorneys
Fees of the Administrative Agent.  The
obligation of the Lenders under this Section shall survive the payment of
all Obligations and the resignation or replacement of the Administrative Agent.

 

Section 10.21.  Confidentiality.

 

(a)                                  Each
Lender agrees to hold any confidential information that it may receive from any
Credit Party pursuant to this Agreement in confidence, except for disclosure:
(a) to a Lender’s Affiliates; (b) to other Lenders and their
Affiliates; (c) to legal counsel and accountants for any Credit Party or
any Lender; (d) to other professional advisors to any Credit Party or any
Lender, provided that the recipient has accepted
such information subject to a confidentiality agreement substantially similar
to this Section; (e) to regulatory officials having jurisdiction over that
Lender; (f) as required by Requirement of Law or legal process or in
connection with any legal proceeding to which that Lender and any Credit Party
is adverse parties; and (g) to another financial institution in connection
with a disposition or proposed disposition to that financial institution of all
or part of that Lender’s interests hereunder or a participation interest in its
Loans, provided that the recipient has agreed
to treat such information confidentially on a basis similar to the
foregoing.  For purposes of the
foregoing, “confidential information”
shall mean any information respecting any Credit Party or its Subsidiaries
reasonably considered by such Credit Party to be confidential, other than
(i) information previously filed with any Governmental Authority and
available to the public, (ii) information previously published in any
public medium from a source other than, directly or indirectly, that Lender,
and (iii) information previously disclosed by any Credit Party to any
Person on a non-confidential basis. 
Nothing in this Section shall be construed to create or give rise
to any fiduciary duty on the part of the Administrative Agent or the Lenders to
any Credit Party.

 

(b)                                 Notwithstanding
any other provision in this Agreement, each of the parties hereto (and each
employee, representative, or other agent of any such party) may disclose to any
and all persons, without limitation of any kind, the U.S. tax treatment and
U.S. tax structure of the transaction and all materials of any kind (including
opinions or other tax analyses) that are provided to such party relating to
such U.S. tax treatment and U.S. tax structure, other than any information for
which nondisclosure is reasonably necessary in order to comply with applicable
securities laws.

 

(c)                                  Each
Lender hereby notifies the Borrower that pursuant to the requirements of the
USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”), it is required to obtain, verify and record
information that identifies the Borrower, which information includes the name
and address of the

 

84

 

Borrower and other information that will allow such
Lender to identify the Borrower in accordance with the Act.

 

85

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date first
above written.

 

 

	
   

  	
  SCIENCE
  APPLICATIONS

  INTERNATIONAL CORPORATION,

  
	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-1

 

	
   

  	
  JPMORGAN CHASE
  BANK, as

  Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-2

 

	
   

  	
  JPMORGAN CHASE BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-3

 

	
   

  	
  CITICORP USA, INC.,

  
	
   

  	
  as Syndication Agent
  and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-4

 

	
   

  	
  MORGAN STANLEY BANK,

  
	
   

  	
  as Co-Documentation
  Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-5

 

	
   

  	
  WACHOVIA BANK NATIONAL

  ASSOCIATION,

  
	
   

  	
  as Co-Documentation
  Agent and as a

  Lender,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-6

 

	
   

  	
  THE ROYAL BANK OF
  SCOTLAND plc,

  
	
   

  	
  as Co-Documentation
  Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-7

 

	
   

  	
  THE BANK OF
  TOKYO-MITSUBISHI

  TRUST COMPANY,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-8

 

	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-9

 

	
   

  	
  MELLON BANK N. A.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-10

 

	
   

  	
  KEY CORPORATE CAPITAL,
  INC.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:  Julien Michaels

  	
   

  
	
   

  	
   

  	
  Title:  Vice President

  	
   

  

 

S-11

 

	
   

  	
  SOCIETE GENERALE

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-12

 

	
   

  	
  MIZUHO CORPORATE BANK,
  Ltd.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-13

 

	
   

  	
  CREDIT LYONNAIS (NEW
  YORK

  BRANCH),

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-14

 

	
   

  	
  THE NORTHERN TRUST
  COMPANY,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-15

 

	
   

  	
  U.S. BANK NATIONAL
  ASSOCIATION,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-16

 

	
   

  	
  MANUFACTURERS AND
  TRADERS

  TRUST COMPANY,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-17

 

	
   

  	
  WELLS FARGO BANK, N.A.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-18

 

Exhibits and
Schedules have been omitted.Exhibit 10(u)

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

EXECUTIVE CHANGE IN CONTROL,

INCENTIVE AND SEVERANCE AGREEMENT

 

THIS EXECUTIVE
CHANGE IN CONTROL, INCENTIVE AND SEVERANCE AGREEMENT (this “Agreement”)
is made and entered into as of September 20, 2004, by and between Telcordia
Technologies, Inc., a Delaware corporation (“Company”), and Matthew J.
Desch (“Executive”).

 

R  E  C  I  T  A
L  S

 

A.            Executive is employed
by Company and serves as a member of its senior leadership team.

 

B.            Science Applications
International Corporation, a Delaware corporation (“SAIC”), owns one
hundred percent (100%) of the outstanding capital stock of Company, and SAIC is
contemplating the possible sale of all or a controlling portion of its interest
in Company (“Transaction”).

 

C.            Company desires to
create a greater incentive for Executive to remain in the employ of Company,
particularly in view of the contemplated Transaction, by making Executive
eligible to receive certain benefits to which Executive is currently not
entitled on the terms and conditions contained herein.

 

D.            In exchange for being
eligible to receive certain benefits from Company, Executive is willing to
perform certain affirmative and negative covenants and release Company and its
affiliates from certain claims on the terms and conditions contained herein.

 

A  G  R  E  E  M
E  N  T

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained
herein, and for such other good and valuable consideration the receipt and
adequacy of which is hereby acknowledged, the parties hereto hereby agree as
follows:

 

1.             Definitions and
Rules of Construction.

 

(a)           Definitions.  The following terms, when used in this
Agreement, shall have the meanings set forth below:

 

“AAA”
has the meaning set forth in Section 10(e).

 

“Actual
Incentive Bonus” means an amount equal to one hundred fifty percent (150%)  of
Executive’s Base Salary multiplied by the Adjustment Factor [Base Salary x
Adjustment Factor]; provided, however, that Actual Incentive Bonus shall not
exceed four hundred fifty percent (450%) of Executive’s Base Salary under any
circumstances.

 

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

“Adjustment
Factor” shall be a number equal to the sum of one (1) plus the difference
between the Transaction Value minus $(***) divided by $(***) [1 + [(Transaction
Value – $(***)) ÷ $(***)]] .

 

“Affiliate”
means any Person that directly or indirectly controls, is controlled by, or is
under common control with, the Person in question.  As used in this definition, the term “control” means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a person, whether through ownership
of voting securities, by contract or otherwise.

 

“Agreement”
has the meaning set forth in the preamble.

 

“Appreciation
Plan” has the meaning set forth in Section 10(c)(i).

 

“Appreciation
Plan Effective Date” has the meaning set forth in Section 10(c)(i).

 

“Arbitrable
Claims” has the meaning set forth in Section 10(e).

 

“Base
Salary” shall be an amount equal to the greater of the rate of Executive’s
gross annual base salary in effect as of the Closing Date and the
date hereof, which shall not include any overtime, bonuses,
commissions, differentials or any compensation other than Executive’s annual
base salary, but shall
be determined prior to any deferrals or salary reduction.

 

“Business”  means the provision of services, whether
directly or indirectly through any contractor or subcontractor, relating to the
design, development, maintenance, sale or distribution of telecommunications
operations support services software or related services.

 

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

 

“Change in
Control” means a change in ownership or control of Company affected through
any of the following transactions:

 

(i)            the acquisition,
directly or indirectly by any person or related group of persons (other than
Company or a person that currently, directly or indirectly controls, is
controlled by, or is under common control with, Company), of beneficial
ownership (within the meaning of Rule 13d-3 of the Securities Exchange Act of
1934) of securities possessing more than fifty percent (50%) of the total
combined voting power of Company’s outstanding securities; or

 

(ii)           a merger or
consolidation in which securities possessing more than fifty percent (50%) of
the total combined voting power of Company’s outstanding securities are
transferred to a person or persons different from the persons holding those
securities immediately prior to such transaction; or

 

(iii)          the sale, transfer or
other disposition of all or substantially all of Company’s assets.

 

2

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

“Closing
Date” means the date that the Transaction is completed in accordance with
the definitive agreement or agreements relating thereto.

 

“Closing
Payout Date” means the date that is fifteen (15) days following the Closing
Date, provided, however that if such date is not a business day, the Closing
Payout Date shall be the next subsequent business day following such
fifteen-day period.

 

“Company”
has the meaning set forth in the preamble.

 

“Executive”
has the meaning set forth in the preamble.

 

“FAA”
has the meaning set forth in Section 10(e).

 

“First
Anniversary Payout Date” means the date that is five (5) days following the
first anniversary of the Closing Date, provided, however that if such date is
not a business day, the First Anniversary Payout Date shall be the next
subsequent business day following such five-day period.

 

“Good Cause”
means (i) willful failure to substantially perform Executive’s duties  (other than as a result of physical or mental incapacity), after delivery
by Company to Executive of written notice of such failure, (ii) gross
misconduct with
regard to Company or in the performance of Executive’s duties,
or (iii) conviction of a felony.

 

“Good
Reason” means (i) a material reduction in the responsibilities of Executive
as in effect immediately prior to the Change in Control; (ii) a reduction by
Company of Executive’s base salary as in effect immediately prior to the
Change in Control; (iii) the failure by Company to pay Executive a bonus award
to which Executive is otherwise entitled under the terms and conditions of any
incentive plans in which Executive participates on the date hereof (or any
successor incentive compensation plan), provided, however that any portion of
such incentive plan that is subject to an evaluation by Company of Executive’s
individual performance shall remain subject to such evaluation; (iv) a material
reduction by Company in the kind or level of employee benefits to which
Executive is entitled immediately prior to the Change in Control with the
result that Executive’s overall benefits package is significantly reduced; (v)
without Executive’s express written consent, the relocation of Executive to a
facility or a location more than fifty (50) miles from Executive’s current
office location; or (vi) the failure of Company to obtain  in writing the assumption of this Agreement by any
successors, provided, however, that no express assumption shall be required in
connection with any stock purchase transaction or a merger transaction under
which Company’s obligations under this Agreement are assumed or transferred to
the successor by operation of law.

 

“ICC
Agreement” has the meaning set forth in Section 7(d).

 

“Monthly
Severance Pay” means an amount equal to the sum of Executive’s annual base
salary in effect on the day immediately prior to employment termination plus
the amount of Executive’s performance bonus paid in cash and stock (whether or
not vested) for the year preceding the employment termination
date prorated for full months of service in the fiscal year of termination
divided by twelve (12) [(Base Salary + [cash and stock bonus

 

3

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

from prior
year x (number of full months of service in fiscal year in which employment is
terminated ÷ 12)] ÷ 12]; provided, however, that (i) if Executive is working
less than on a full-time basis immediately prior to employment termination,
Monthly Severance Pay shall be prorated based on the ratio of Executive’s
part-time schedule to a full-time schedule, (ii) if Executive’s annual base
salary on the day immediately prior to the employment termination date is less
than the base salary paid in the prior fiscal year, the higher base salary paid
in the prior fiscal year shall be used in the calculation of Monthly Severance
Pay, and (iii) if Executive’s bonus paid for the year preceding the employment
termination date is less than the bonus paid for the fiscal year immediately
preceding such fiscal year, the higher bonus paid in such immediately preceding
fiscal year shall be used in the calculation of Monthly Severance Pay.

 

“Payout
Date” means, individually as applicable, the Closing Payout Date, the First
Anniversary Payout Date or the Second Anniversary Payout Date, and “Payout
Dates” means, collectively, the Closing Payout Date, the First Anniversary
Payout Date and the Second Anniversary Payout Date.

 

“Person”
means an individual or a corporation, partnership, trust, estate,
unincorporated organization, association or other entity.

 

“Pre-Change
in Control Good Reason” means (i) a change to Executive’s job title without
Executive’s consent, (ii) a reduction by Company of Executive’s base salary as
in effect as of the date hereof; (iii) the failure by Company to pay Executive
a bonus award to which Executive is otherwise entitled under the terms and
conditions of any incentive plans in which Executive participates on the date
hereof (or any successor incentive compensation plans), provided, however, that
any portion of such incentive plan that is subject to an evaluation by Company
of Executive’s individual performance shall remain subject to such evaluation;
or (iv) without Executive’s express written consent, the relocation of
Executive to a facility or a location more than fifty (50) miles from
Executive’s current office location.

 

“Protected
Terminations” has the meaning set forth in Section 2(a).

 

“Restricted
Period” means the period of time from the date of this Agreement until the
earlier of (i) the second anniversary of the Closing Date and (ii) the first
anniversary date on which Executive’s employment with Company or any of its
Affiliates is
terminated provided that, if there is no Closing Date within one (1) year of
the date hereof, the Restricted Period shall end at the end of such one (1)
year period.

 

 “SAIC” has the
meaning set forth in Recital
B.

 

“SAIC
M&A Group” means William A. Roper Jr., Corporate Executive Vice
President of SAIC, Kevin A. Werner, Senior Vice President, Strategic
Development Activities of SAIC, and Paul H. Greiner, Deputy General Counsel of
SAIC.

 

“Second
Anniversary Payout Date” means the date that is five (5) days following the
second anniversary of the Closing Date, provided, however that if such date is
not a

 

4

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

business day,
the Second Anniversary Payout Date shall be the next subsequent business day
following such five-day period.

 

“Territory”
means the geographic area consisting of North America, Europe and any other
equivalent geographical subdivision in foreign jurisdictions in which Company
or its subsidiaries does business, including the United States, Canada, Mexico,
the United Kingdom, Italy, Spain, France, Germany, Belgium, Luxembourg, the
Netherlands, Austria, Poland and the Czech Republic.

 

“Third
Parties” has the meaning set forth in Section 8(a).

 

“Total
Disability” shall mean Executive’s mental or physical impairment which has
prevented Executive from performing the responsibilities and
duties of his position for 180 days in any 365 day period.  Any question as to the existence or extent
of Executive’s mental or physical impairment upon which Executive and Company
cannot agree shall be resolved by a qualified independent physician who is an
acknowledged expert in the area of the mental or physical impairment, selected
in good faith by the Board of Directors of Company and approved by Executive
(or Executive’s legal representative), which approval shall not unreasonably be
withheld.

 

“Transaction”
has the meaning set forth in Recital B.

 

“Transaction
Value” means the total amount of cash and the fair market value of other
property paid to Company, SAIC and/or their respective stockholders
in connection with the Transaction, including amounts paid in respect of
convertible securities, options or similar rights, whether or not vested, plus,
without duplication, the principal amount of all indebtedness for borrowed
money of Company (including capitalized leases but excluding inter-company debt
owed by Company to SAIC) outstanding immediately prior to
consummation of the Transaction or, in the case of a purchase of assets, all
indebtedness for borrowed money of Company assumed by a purchaser in the
Transaction and, in any case, any indebtedness for borrowed money and any capital
lease and preferred stock obligations of Company retired or defeased by the
purchaser or issued to SAIC or its stockholders in connection with the
Transaction (but excluding inter-company debt owed by Company to SAIC).  “Transaction Value” also shall include,
without duplication, the aggregate amount of any cash dividends or other
distributions that are outside of the ordinary course and are declared by
Company after the date hereof, amounts paid by Company to repurchase any of its
securities outstanding on the date hereof, and, in the case of a sale of
assets, the net value of any working capital of Company (other than cash)  not
acquired by the purchaser in a Transaction. 
If a Transaction, other than a sale of assets, results in a majority
(but less than all) of the outstanding capital stock of Company having been
acquired, the Transaction Value shall be calculated pursuant to this definition
as if the Transaction had resulted in acquisition of one hundred percent (100%)
of the outstanding capital stock of Company.

 

(b)           Rules of
Construction.  This Agreement shall
be construed in accordance with the following rules of construction:

 

5

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

(i)            the terms defined in
this Agreement include the plural as well as the singular;

 

(ii)           all references in the
Agreement to designated “Sections” and other subdivisions are to the designated
articles, sections and other subdivisions of the body of this Agreement;

 

(iii)          pronouns of either
gender or neuter shall include, as appropriate, the other pronoun forms;

 

(iv)          the words “herein,”
“hereof” and “hereunder” and other words of similar import refer to this
Agreement as a whole and not to any particular Article, Section or other
subdivision;

 

(v)           the words “includes”
and “including” are not limiting;

 

(vi)          the words “in writing”
and “written” include electronic mail; and

 

(vii)         all references to days
shall be deemed to refer to calendar days unless this Agreement specifically
refers to “business days,” in which event Saturdays, Sundays, federal and any
other day on which commercial banks in New York City are authorized or required
by law to close shall be excluded.

 

2.             Incentive Bonus
upon Change in Control.

 

(a)           Eligibility.  In addition to Executive’s base salary and
performance bonus, if any, and subject to Section 2(d), Executive shall
be entitled to receive an Actual Incentive Bonus, payable in installments in
the amounts and on the dates set forth in Section 2(c), provided that
all of the following conditions are met: (i) SAIC executes a definitive
agreement before the one-year anniversary of the date of this Agreement
relating to a Transaction which results in a Change in Control; (ii) the
Transaction Value of the Transaction is at least $(***); (iii) Executive
complies with each of the covenants set forth in Section 7 hereof  and (iv)  Executive is continuously employed by
Company or its Affiliates  from the date of this Agreement through
the applicable Payout Date  or
Executive’s employment with Company or its Affiliate terminates as a result of
his death, Total Disability, termination without Good Cause or termination for
Good Reason (the “Protected
Terminations”).

 

(b)           Calculation of
Actual Incentive Bonus.  Company
shall calculate Executive’s Actual Incentive Bonus following the Closing Date
and shall provide written notice of its calculation to Executive in reasonable
detail on or before the Closing Payout Date. 
Notwithstanding application of the formula used in the definition of
Actual Incentive Bonus, the Actual Incentive Bonus shall be subject to a
maximum of four hundred fifty percent (450%) of Executive’s Base Salary and
shall not exceed four hundred fifty percent (450%) of Executive’s Base Salary
under any circumstances.  Examples
illustrating calculations of the Actual Incentive Bonus are set forth on Exhibit
A.

 

6

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

(c)           Payment.  Provided that all of the conditions set
forth in Section 2(a), are met subject to Section 2(d), the
Actual Incentive Bonus shall be paid to Executive (or in the case of
Executive’s death, Executive’s estate) in cash as follows:

 

(i)            Fifty percent (50%) of
the Actual Incentive Bonus shall be paid on or before the Closing Payout Date;

 

(ii)           Twenty-five percent
(25%) of the Actual Incentive Bonus shall be paid on or before the First
Anniversary Payout Date; and

 

(iii)          Twenty-five percent
(25%) of the Actual Incentive Bonus shall be paid on or before the Second
Anniversary Payout Date.

 

(d)           Effect of
Termination of Employment.  Except
as provided in Section 3 and Section 4 below, notwithstanding
anything else to the contrary in this Agreement, if Executive is not employed
by Company or any of its then current Affiliates on any applicable Payout Date
for any reason other than the Protected Terminations, Executive
shall not be eligible to receive and shall not receive the amount of the Actual
Incentive Bonus payable on such Payout Date and any subsequent Payout Date.

 

3.             Termination
Following Change in Control.

 

(a)           Benefits.  If within two (2) years following a Change
in Control, (1) Executive’s employment with Company or its Affiliate terminates
under one of the Protected Terminations, then, upon the
execution by Executive or his legal representative of the release of claims
substantially in the form attached hereto as Exhibit B, Executive (or in
the case of death, Executive’s estate) shall be entitled to the following
benefits:

 

(i)            Accrued Salary and
Bonus.  Any Base Salary and accrued
bonus or other accrued incentive payments earned and payable through the
effective date of termination;

 

(ii)           Unpaid Incentive
Bonus.  Acceleration of any
remaining unpaid amounts of Executive’s Actual Incentive Bonus (provided that
conditions set forth in Section 2(a) have been met) to the same extent
as if Executive had remained employed through the Second Anniversary Payout
Date; and

 

(iii)          Severance.  Monthly Severance Pay for eighteen (18)
months following termination of employment.

 

(b)           Payment.  After Company’s receipt of Executive’s
executed, unrevoked release of claims against Company and its agents
substantially in the form attached hereto as Exhibit B, at Company’s
option, Company shall pay any unpaid Actual Incentive Bonus and Monthly
Severance Pay owing to Executive under this Section 3 either in a lump
sum within fifteen (15) days after Executive’s execution of such release of
claims or in accordance with the scheduled Payout Dates with respect to any
unpaid Actual Incentive Bonus and in accordance with the normal payroll
practices of Company with respect to any Monthly Severance Pay.

 

7

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

(c)           No Mitigation.  Executive shall not be required to mitigate
the value of any severance benefits contemplated under this Section 3,
nor shall any such benefits be reduced by any earnings or benefits that
Executive may receive from any other source.  The amounts due hereunder shall be paid without
offset or counterclaim.

 

4.             Termination Before
Change in Control.

 

(a)           Benefits.  If before the second anniversary of the date
of this Agreement or the date of completion of a Change in Control Transaction,
whichever is earlier, Company or its Affiliate terminates Executive’s employment
with Company or its Affiliates without Good Cause or Executive terminates
employment with Company or its Affiliates for Pre-Change in Control Good
Reason, upon the execution by Executive of the release of claims substantially
in the form attached hereto as Exhibit B, Executive shall be entitled to
the following benefits:

 

(i)            Accrued Salary and
Bonus.  Any Base Salary and accrued
bonus or other accrued incentive payments earned and payable through the
effective date of termination;

 

(ii)           Unpaid Incentive
Bonus.  Executive’s Actual Incentive
Bonus shall continue to be payable, subject to fulfillment of the conditions
set forth in Section 2(a), to the same extent as if Executive had
remained employed through the Second Anniversary Payout Date; and

 

(iii)          Severance.  Monthly Severance Pay for eighteen (18)
months following termination of employment.

 

(b)           Payment.  After Company’s receipt of Executive’s
executed, unrevoked release of claims against Company and its Affiliates
substantially in the form attached hereto as Exhibit B, at Company’s
option, Company shall pay any unpaid Actual Incentive Bonus and Monthly
Severance Pay owing to Executive under this Section 4 either in a lump
sum within fifteen (15) days after Executive’s execution of such release of
claims or in accordance with the scheduled Payout Dates with respect to any
unpaid Actual Incentive Bonus and in accordance with the normal payroll
practices of Company with respect to any Monthly Severance Pay.

 

(c)           No Mitigation.  Executive shall not be required to mitigate
the value of any severance benefits contemplated under this Section 4,
nor shall any such benefits be reduced by any earnings or benefits that
Executive may receive from any other source. 
The amounts
due hereunder should be paid without offset or counterclaim.

 

5.             Withholding Taxes.  All payments required under this Agreement
shall be subject to applicable payroll or other taxes required to be withheld
by Company.

 

6.             Parachute Payments.  If the benefits described in Section 2, Section
3 and Section 4, in conjunction with any benefits realized under any
SAIC or Company stock option plan, or any severance plan, practice, policy or
agreement would otherwise constitute a parachute payment under Section 4999 of
the Code, then Executive shall receive a full gross-up

 

8

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

with regard to any excise tax due
pursuant to Code Section 4999 in connection with the Transaction as provided in
Exhibit
C hereto such that Executive shall have no excise tax costs relating to
any such benefits.

 

7.             Nonsolicitation and
Noncompete.

 

(a)           Nonsolicitation.  During the Restricted Period, Executive
shall not: (i) directly call upon or solicit any of the customers of Company or
any of its Affiliates which employed Executive that were or became customers
and with whom Executive developed a relationship during the term of Executive’s
employment, except as necessary to carry out Executive’s job duties while
employed by Company (as used herein “customer” shall mean any Person from whom
Company or such Affiliate generated revenue); (ii) induce or attempt to induce
any employee, agent or consultant of Company, SAIC or any of their Affiliates
to terminate his or her association with Company, SAIC or any of their
Affiliates; or (iii)
authorize or direct the taking of such actions by other Persons on behalf of
Executive; provided, however, that in each case of (i) through (iii), public
solicitations or general advertisements not specifically targeted at such
customers, employees or agents shall not be in violation of this Section 7(a).

 

(b)           Noncompete.  During the Restrictive Period, Executive
shall not engage or participate, directly or indirectly, either as principal,
agent, employee, employer, consultant, stockholder, director, officer, member,
partner or in any other individual or representative capacity whatsoever, in
the conduct or management of, or own any stock or other proprietary interest
in, any Business that competes in the Territory other than on behalf of Company
or its Affiliates, unless he shall have obtained Company’s written consent
prior to undertaking any such activity; provided, however, Executive shall be
free without such consent to make reasonable investments in any such Business
which is publicly owned so long as his ownership of securities of such Business
does not exceed two percent (2%) of the outstanding amount of any class of any
such securities

 

(c)           Termination without
Good Cause or for Good Reason.  The
provisions of Section 7(a) and Section 7(b) shall not apply if
Executive is terminated by Company without Good Cause or Executive terminates
employment with Company for Good Reason or if the Transaction Value in any
Transaction is less than $(***).

 

(d)           Invention, Copyright
and Confidentiality Obligations. 
Executive previously has executed an Invention, Copyright and
Confidentiality Agreement between Executive and Company or SAIC (the “ICC
Agreement”).  The ICC Agreement is
incorporated into this Agreement by this reference.  Notwithstanding termination of Executive’s employment with
Company for any reason, Executive’s obligations under the ICC Agreement shall
continue indefinitely in accordance with the terms thereof.

 

(e)           Tailored
Restrictions; Severable Promises. 
Company and Executive agree that the provisions of Section 7(a)
and Section 7(b) contain restrictions that are not greater than
necessary to protect the interests of Company. 
The parties hereto intend that the promises set forth in Section 7(a)
and Section 7(b) hereof shall be construed as a series of separate
promises, each promise to prohibit certain actions in each jurisdiction to
which this Agreement may apply.  Except
for such geographic coverage, each such separate

 

9

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

promise shall
be deemed identical in terms.  It is the
desire and intent of the parties that the provisions of this Agreement shall be
enforced to the fullest extent permissible under the laws and public policies
applied in each jurisdiction in which enforcement is sought.  Accordingly, if any court or arbitrator
determines that any particular provision or portion of this Agreement shall be
adjudicated to be invalid or unenforceable in respect of scope, duration or
geographic area, such court or arbitrator shall be empowered and directed by
the parties pursuant to this Section 7(e) to substitute provisions
similar to those contained in this Agreement so as to provide the parties, to
the fullest extent permitted by applicable law, the benefits intended by this
Agreement.

 

(f)            Remedies for
Breach.  Both parties recognize and
agree that Executive’s services and knowledge are special, unique and of
extraordinary character, and that any breach of the covenants and obligations
undertaken by Executive pursuant to this Agreement at any time would result in
irreparable damage to Company in an amount difficult to ascertain.  Accordingly, in addition to any other relief
to which Company may be entitled, Company shall be entitled, if it so elects,
to institute and prosecute proceedings in any court of competent jurisdiction,
either in law or in equity, to enforce the specific performance of the terms
and conditions of this Agreement by Executive or to enjoin Executive from
performing services for any such other Person or violating Executive’s
obligations under the ICC Agreement or Executive’s covenants contained in Section
8 and Section 9, and to obtain damages for such breach of this
Agreement.

 

8.             Executive Covenants.

 

(a)           General
Non-Disclosure Obligations. 
Executive agrees that during Executive’s employment, Executive will have
access to, will acquaint and become acquainted with various trade secrets,
confidential and proprietary information relating to Company’s business, and
the business of Company’s Affiliates, including but not limited to information
relating to the Transaction.  Executive
agrees that
subject to (c) below, at all times during the term of
Executive’s employment and thereafter to hold in confidence and not to use or
to disclose or direct or authorize others to use or disclose, directly or
indirectly, to any person, firm or corporation, all except for the benefit of
Company and its Affiliates or without written authorization approved by the
Board of Directors of Company, any trade secrets or confidential information of
Company or its Affiliates, including the following: customer, employee,
supplier, and distributor lists, contacts, addresses, information about
employees and employee relations, training manuals and procedures, recruitment
method and procedures, business plans and projections, employment contracts,
employee handbooks, information about customers and suppliers, price lists,
costs and expenses, documents, budgets, proposals, financial information,
inventions, patterns, processes, formulas, data bases, know how, developments,
experiments, improvements, computer programs, manufacturing, recruitment and distribution
techniques, specifications, tapes, and compilations of information, all of
which are owned by Company or its Affiliates, other parties with which Company
or its Affiliates do business (“Third Parties”) or customers of Company
or its Affiliates, and which are used in the operation of the business of
Company, its Affiliates or any of their Third Parties or customers.  If any provision contained in this Section
8(a) conflicts with the ICC Agreement, then the provisions of the ICC
Agreement shall apply.

 

10

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

(b)           Trade Secrets and
Confidential or Proprietary Information. 
Executive understands “trade secret” or “confidential or proprietary
information” to mean all information concerning Company, its Affiliates and
their Third Parties or customers (including but not limited to information
regarding the particularities, preferences and manner of doing business) that
is (x) not generally known to the public and (y) cannot be discovered or
replicated by a third party without substantial expense and effort; provided,
however, that such trade secrets and confidential or proprietary information
does not include information which becomes part of the public domain or
generally known in the industry without breach of this
Agreement.

 

(c)           Legal Proceedings.  If Executive is requested or required by
oral questions, interrogatories, requests for information or documents in legal
proceedings, subpoena, civil or regulatory investigative demand
or other similar process to disclose any trade secrets or confidential or
proprietary information required to be kept confidential hereunder, Executive
shall provide Company with prompt written notice of any such request or
requirement to the
extent legally permitted so that Company may seek a
protective order or other appropriate remedy and/or waive compliance with the
provisions of this Agreement.  In the
event that such protective order or other remedy is not obtained, Executive
agrees to furnish only that portion of the trade secrets or confidential or
proprietary information for which Company has waived compliance or for which
Executive is advised by counsel reasonably experienced in such matters that
disclosure is required by law, rule, regulation or court order.

 

(d)           Transaction Specific
Covenants.

 

(i)            Executive shall use
commercially reasonable efforts and work in good faith with respect to any
process established by SAIC to sell Company. 
Executive shall not intentional refuse or willfully fail to carry out
any lawful written instructions provided by Company’s Board of Directors or
the SAIC M&A Group, and Executive shall not direct others to refuse or to
fail to carry out any such instructions provided by Company’s Board of
Directors or the SAIC M&A Group, in connection with any reasonable process
established by SAIC to sell Company (including any reasonable instructions
regarding communication with prospective buyers of Company and the provisions
set forth in clauses (ii) and (iii) of this Section 8(d)).

 

(ii)           Until a definitive
agreement is executed by SAIC in connection with a Transaction, Executive shall
not directly or indirectly initiate, respond to or engage in any communication
concerning any contemplated Transaction or proposal for a Transaction with any
party, including any prospective buyer of Company, except to support due
diligence activities by such party as may be authorized by the SAIC M&A
Group, which due diligence activities shall include management presentations
and due diligence sessions scheduled by the SAIC M&A Group or SAIC’s
investment bankers.

 

(iii)          Through the Closing
Date, without the express written consent of a member of the SAIC M&A
Group, Executive shall not directly or indirectly initiate, respond to or
engage in any negotiations or communications of with any

 

11

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

prospective
buyer of Company concerning any changes, modifications or additions to existing
Company or SAIC compensation arrangements or any equity participation or any
other material compensation or material incentive arrangements following the
Closing Date with respect to Executive or any other Company personnel.

 

9.             Employment Status.  Nothing in this Agreement shall be deemed to
constitute a contract for employment for any specific period of time.  The parties expressly acknowledge and agree
that Executive’s employment with Company shall continue to be “at will.”

 

10.           Miscellaneous
Provisions.

 

(a)           Captions.  The captions in this Agreement are not part
of the provisions hereof, are merely for the purpose of reference and shall
have no force or effect.

 

(b)           General Release.  All compensation and benefits under Section
3 and Section 4 are in consideration for Executive’s execution of a
general release of all known and unknown claims that Executive may then have
against Company and its agents, the form of which is attached as Exhibit B.  If Executive does not properly execute a
release substantially in the form attached as Exhibit B, the parties
expressly acknowledge and agree that Executive shall not be entitled to any of
the benefits provided under Section 3 or Section 4.

 

(c)           Employee
Appreciation Plan; Unvested SAIC Stock, Options and Share Unit Interests at
Change in Control.

 

(i)            Executive has been
provided a copy of a draft of the Telcordia Employee Appreciation Plan (“Appreciation
Plan”), which may be adopted and approved by Company.  The Appreciation Plan, if adopted and
approved, will become effective the day immediately following the closing date
of a Transaction which results in a Change in Control (the “Appreciation
Plan Effective Date”).  The
Appreciation Plan provides for a payment within 30 days of the first
anniversary and second anniversary of the Appreciation Plan Effective Date to
certain employees of Company in recognition, among other things, of the
forfeiture of unvested SAIC stock, options and share unit interests at the closing
of such Transaction.  In order to
receive the payments at the first anniversary and second anniversary of the
Appreciation Plan Effective Date, the Appreciation Plan requires that the
employee be continuously employed by Company from the date of the closing of
such Transaction through the relevant anniversary date.  Notwithstanding anything else in the
Appreciation Plan to the contrary, if the employment of Executive is terminated
by Company without Good Cause or Executive terminates employment with Company
for Good Reason prior to the second anniversary of the Appreciation Plan
Effective Date, Company shall deem Executive to be continuously employed by
Company until such second anniversary date for all purposes under the
Appreciation Plan.

 

(ii)           If prior to the closing
date of a Transaction which results in a Change in Control the employment of
Executive is terminated without Good Cause or

 

12

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

Executive
terminates employment with Company for Good Reason, Executive shall be
permitted for a period of two years following such employment termination date
to retain the status of consultant to SAIC or Telcordia for purposes of
continued vesting of SAIC stock, options and share unit interests.

 

(d)           Severance Benefits.  The severance benefits provided by this Agreement
are in lieu of any other severance benefits provided by Company under any other
applicable practice, policy or agreement. This Agreement expressly supercedes
any practice, policy or agreement with respect to severance, termination or
separation payments, including as set forth in the offer letter from Company
dated June 13, 2002, as Executive shall only be entitled to payments as
provided under this Agreement, and any severance, termination or separation payments
under any practice, policy, agreement or offer letter to which Executive may
have been entitled prior to the date of this Agreement shall be null and void
and of no further force or effect.

 

(e)           Confidentiality.  Executive agrees that Executive shall not
disclose voluntarily or either the existence, reason for or contents of this
Agreement without the prior written consent of Company and SAIC, unless
required to do so by law; provided, however, notwithstanding this provision, (1) if
this Agreement becomes publicly available through a filing by SAIC with the
Securities and Exchange Commission or otherwise in a disclosure not in
violation of the terms of this Agreement, this paragraph (d) shall be of no
further force or effect, (2) the nonsolicitation and noncompetition obligations
of Executive may be disclosed by Executive to a potential future employer of
Executive, and (3) Executive is authorized to disclose this
Agreement to Executive’s spouse, attorneys and tax advisors on a “need to know”
basis, on the condition that they agree to hold the existence, reason for and
terms of this Agreement in confidence.

 

(f)            Arbitration.  Executive and Company agree that any and all
disputes or claims, including all contract, tort, discrimination, common law or
statutory disputes or claims between Executive and Company and/or its
Affiliates, arising under or relating to Executive’s employment or termination
of employment with Company or this Agreement  (“Arbitrable Claims”) shall be
resolved by final and binding arbitration; provided, however, that the sole exceptions
to the foregoing exclusive arbitration provisions are claims brought by either
Executive or Company under applicable workers’ compensation law, unemployment
insurance claims and other provisions expressly prohibited by law from being
arbitrated as well as disputes or claims brought by Company or SAIC in any
court of competent jurisdiction, either in law or in equity, to enforce the
specific performance or enjoin the violation of the terms of Section 7
or Section 8.  For all claims
other than the exceptions enumerated in the immediately preceding sentence,
Executive and Company agree that arbitration shall be exclusive, final and
binding remedy.  Executive and
Company hereby waive any rights each may have to a jury trial
in regard to the Arbitrable Claims. 
Executive and Company further agree that the arbitrator shall have the
sole authority to determine arbitrability of any such Arbitrable Claims.  Arbitration shall be conducted by one
arbitrator before the American Arbitration Association (the “AAA”) in New York City (or other mutually agreed upon city)
under its  National
Rules for the Resolution of Employment Disputes.  As in any arbitration, the burden of proof shall be allocated as
provided by applicable law.  Company
agrees to pay

 

13

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

the fees and
costs of the arbitrator and the AAA. 
However, the arbitrator shall have the same authority as a court to
award equitable relief, damages, costs, and fees (excluding the costs and fees
for the arbitrator) as provided by law for the particular claims asserted.  This arbitration clause shall be governed by
and construed in all respects under the terms of the Federal Arbitration Act (“FAA”).

 

(g)           Entire Agreement,
Amendment or Modification.  This
Agreement, together with the ICC Agreement, contains the entire agreement of
the parties with respect to the subject matter herein and supersedes and
replaces all contemporaneous agreements or understandings between the
parties.  No amendment or modification
of this Agreement shall be effective unless made in writing approved by
Executive and a majority the Board of Directors of Company and, if
prior to a Change in Control, with the prior written consent
of SAIC to any such amendment or modification. 
Failure of either party to enforce any of the provisions of this Agreement
or any rights with respect thereto or failure to exercise any election provided
for herein shall in no way be considered to be a waiver of such provisions,
rights or elections or in any way effect the validity of this Agreement.  The failure of either party to exercise
any of provisions, rights or elections under this Agreement shall not preclude
or prejudice such party from later enforcing or exercising the same or other
provisions, rights or elections which it may have under this Agreement.

 

(h)           Successors and
Beneficiaries.  This Agreement shall
be binding on and inure to the benefit of SAIC as a third party beneficiary, as
well as to the successors, assigns, heirs, devisees and personal
representatives of the parties, including any successor to Company (whether
direct or indirect and whether by purchase, lease, merger, consolidation,
liquidation or otherwise) to all or substantially all of Company’s business
and/or assets,
but shall not be assigned by Company other than to a successor to all or substantially
all of its assets.  If
Executive dies before receipt of all payments owing to Executive under Section
2, Section 3 or Section 4, any remaining unpaid amounts owing
to Executive under such Sections shall be made to the executors or administrators
of Executive’s estate, on the due date or dates hereunder, to the same extent
as if Executive had survived and remained employed through the Second
Anniversary Payout Date.

 

(i)            Governing Law.  This Agreement is made in, and shall be
governed by and construed in accordance with the laws of, the State of New
Jersey, without
regard to the principles of conflicts of laws.

 

(j)            Severability.  If any term, provision, covenant or
condition of this Agreement is held to be invalid, void, or unenforceable, the
remainder of the provisions of this Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated thereby.

 

(k)           Relocation.  Until the earlier to occur of (i) the second
anniversary date of the closing of a Transaction which results in a Change in
Control, (ii) the date Executive completes the sale of his personal residence
in Dallas, Texas or (iii) the date of termination of Executive’s employment by
Company or its Affiliates, Company shall reimburse Executive for reasonable
costs incurred by Executive consistent with those reimbursed to date for
housing in New Jersey, such costs reimbursable in accordance

 

14

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

with Company’s
relocation policies and procedures. 
Executive shall also be reimbursed for reasonable costs incurred by
Executive in connection with relocating Executive’s household from Dallas,
Texas to New Jersey, including moving household goods, home travel to New
Jersey prior to relocation and real estate acquisition expenses, these expenses
to be reimbursable by Company only in accordance with Company’s policies and
procedures and subject to approval by Company. 
In addition, Company shall pay to Executive an amount equal to the full
“gross-up” of all federal, state and local income and employment taxes attributable
to all of the relocation benefits described in this Section 10(k) (including
the “gross-up” payment itself), such that there is no out-of-pocket costs for
such taxes paid by Executive relating to these relocation benefits.

 

11.           Notices.  Any notice required or permitted to be given
under this Agreement shall be in writing and shall be deemed to have been given
when delivered personally, telecopied to the number below (or such other
changed number as such party may subsequently give notice of) between the hours
of 9:00 a.m. and 5:00 p.m. local time of the recipient, with answerback receipt
acknowledging telecopy delivery, delivered by reputable overnight courier or
received by registered or certified mail, postage prepaid, return receipt
requested, addressed to the party concerned at the address indicated below (or
to such other changed address as such party may subsequently give notice of):

 

	
  If to
  Company:

  	
   

  	
  Telcordia
  Technologies, Inc.

  
	
   

  	
   

  	
  One
  Telcordia Drive

  
	
   

  	
   

  	
  Piscataway,
  New Jersey  08854

  
	
   

  	
   

  	
  Attention:

  	
   

  	
  Grant L.
  Clark

  
	
   

  	
   

  	
   

  	
   

  	
  General
  Counsel

  
	
   

  	
   

  	
   

  	
   

  	
  Email:
  gclark@telcordia.com

  
	
   

  	
   

  	
   

  	
   

  	
  Telephone
  No.: (858) 826-5068

  
	
   

  	
   

  	
   

  	
   

  	
  Fax No.:
  (858) 826-7007

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  With copy
  to:

  	
   

  	
  Science
  Applications International Corporation

  
	
   

  	
   

  	
  10260 Campus
  Point Drive, M/S F3

  
	
   

  	
   

  	
  San Diego,
  California 92121

  
	
   

  	
   

  	
  Attention:

  	
   

  	
  Paul H.
  Greiner, Esq.

  
	
   

  	
   

  	
   

  	
   

  	
  Deputy
  General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
  Email:
  greinerp@saic.com

  
	
   

  	
   

  	
   

  	
   

  	
  Telephone
  No.: (858) 826-7360

  
	
   

  	
   

  	
   

  	
   

  	
  Fax No.:
  (858) 826-4037

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  If to
  Executive:

  	
   

  	
  Matthew J.
  Desch

  
	
   

  	
   

  	
  (***)

  
	
   

  	
   

  	
  (***)

  
	
   

  	
   

  	
  (***)

  
	
   

  	
   

  	
  Email: (***)

  
	
   

  	
   

  	
  Telephone
  No.: (***)

  
	
   

  	
   

  	
  Fax No.:
  (***)

  

 

15

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

12.           Expenses and Legal
Fees.  The parties agree that all
expenses and fees incurred by them in connection with the preparation of this
Agreement shall be borne by the party incurring such fees and expenses,
including all fees of legal counsel.  In the event of any dispute with regard to the
provisions of, or in connection with, this Agreement, the court or arbitrator
may, in its discretion, require Company to pay or reimburse the legal fees and
disbursements incurred by Executive in connection with such dispute if
Executive is the prevailing party in any such dispute.

 

13.           Termination of
Agreement.  If no Transaction that
results in a Change in Control is completed by the second anniversary of the date
of this Agreement, all of the provisions of this Agreement shall terminate and
be of no further force or effect except for Sections 10 through 13 of this
Agreement and the provisions of the ICC Agreement, all of which shall continue
in accordance with the terms thereof.

 

16

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

IN WITNESS
WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

 

	
  “Company”

  	
  “Executive”

  
	
   

  	
   

  
	
  Telcordia
  Technologies, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Grant L.
  Clark

  	
   

  	
  /s/ Matthew
  J. Desch

  	
   

  
	
  Grant L. Clark

  	
  Matthew J.
  Desch

  
	
  Secretary and General Counsel

  	
   

  
					

 

17

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

EXHIBIT A

 

ACTUAL INCENTIVE BONUS EXAMPLES

 

Exhibit A: Calculation of
Actual Incentive Bonus

 

	
  Transaction Value

  (TV)

  	
   

  	
  Base
  Salary

  (BS)

  	
   

  	
  Bonus

  Multiple

  	
   

  	
  Adjustment

  Factor (AF)

  	
   

  	
  Actual
  Incentive

  Bonus(1)

  	
   

  
	
  $

  	
  (***

  	
  )

  	
  $

  	
  (***

  	
  )

  	
  (***

  	
  )%

  	
  (***

  	
  )

  	
  —

  	
   

  
	
  (***

  	
  )

  	
  (***

  	
  )

  	
  (***

  	
  )%

  	
  (***

  	
  )

  	
  (***

  	
  )

  
	
  (***

  	
  )

  	
  (***

  	
  )

  	
  (***

  	
  )%

  	
  (***

  	
  )

  	
  (***

  	
  )

  
	
  (***

  	
  )

  	
  (***

  	
  )

  	
  (***

  	
  )%

  	
  (***

  	
  )

  	
  (***

  	
  )

  
	
  (***

  	
  )

  	
  (***

  	
  )

  	
  (***

  	
  )%

  	
  (***

  	
  )

  	
  (***

  	
  )

  
	
  (***

  	
  )

  	
  (***

  	
  )

  	
  (***

  	
  )%

  	
  (***

  	
  )

  	
  (***

  	
  )

  
	
  (***

  	
  )

  	
  (***

  	
  )

  	
  (***

  	
  )%

  	
  (***

  	
  )

  	
  (***

  	
  )

  
	
  (***

  	
  )

  	
  (***

  	
  )

  	
  (***

  	
  )%

  	
  (***

  	
  )

  	
  (***

  	
  )

  
												

 

(1) Actual Incentive Bonus = 150% of BS x
AF.  Where AF = 1 +
{(TV-$(***))/$(***)}, subject to these constraints:

• If TV <
$(***)M, Actual Bonus = $0.

• If TV >
$(***)B, Actual Bonus = 450% of Base Salary.

 

A-1

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange Commission.

 

EXHIBIT B

 

GENERAL RELEASE

 

THIS GENERAL
RELEASE (“Release”) is hereby granted by Matthew J. Desch (“Executive”) as of
              
pursuant to the terms of Section 3(a) or Section 4(a) of that
certain Executive Change in Control, Incentive and Severance Agreement dated as
of           , 2004, by and
between Telcordia Technologies, Inc., a Delaware corporation (“Telcordia”) and
Executive, as the same may be amended or modified as of and through the date
hereof (the “Severance Agreement”).

 

1.             Release.  In consideration for and
conditioned upon the timely receipt of, the benefits set
forth in the Severance Agreement (including those set forth in Sections 2, 3, and 6
thereof), Executive and each of his related parties,
affiliates, successors and assigns (collectively, the “Executive Parties”)
hereby forever release, remise, acquit, and discharge Telcordia and any former,
present or future parent (including Science Applications International
Corporation), subsidiary or affiliated entities, as well as their
predecessors-in-interest, affiliates, related entities, employees, attorneys,
agents, officers, directors, stockholders, members, managers, servants,
successors, assigns, heirs, personal representatives, and administrators,
(collectively, the “Released Parties”), from any and all actions, causes of
actions, claims, demands, damages, liability, costs, loss of services,
expenses, and compensation whatsoever, including attorneys’ fees, which they
presently have or ever have had prior to the date hereof, including, without
limitation, any claims  related to or arising out of the Executive’s
employment or affiliation with Telcordia or any of the Released Parties;
provided, however, that the Executive Parties do not release or discharge any
Released Party from or against any claim of Executive under the Severance
Agreement.

 

2.             Release of Unknown
Claims.  It is the intention of the
Executive Parties that this Release is a general release with regard to the
performance, services, or fulfillment of duties of any kind, and shall be
effective as a bar to each and every claim, demand, or cause of action that any
of the Executive Parties may now, or ever, have against the Released Parties
arising out of, related to, or in any way connected with the relationship of the
parties on or before the date hereof or arising out of or in connection with
the Severance Agreement. The Executive Parties recognize that they may have
some claim, demand, or cause of action against the Released Parties of which
they are totally unaware and unsuspecting, and that the Executive Parties are
giving up such claims, demands, and causes of action by execution of this
Release. It is the intention of the Executive Parties in executing this Release
that it will deprive each of them of each such unknown claim, demand, and cause
of action, and prevent any of them from ever asserting such unknown claim,
demand, or cause of action against any of the Released Parties. The Executive
Parties further understand, agree, and expressly intend that this Section 2 be
construed as a waiver by the parties of the protections offered, if any, by any
statute or rule of law that states that a general release does not extend to
claims with the releasing party does not know or suspect to exist in his favor
at the time of executing the release, which if know by him may have materially
affected his settlement or release.

 

B-1

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

3.             No Future Suits.  Each of the Executive Parties agrees that it
will not individually, or in concert with others, by virtue of judicial or administrative
proceedings, of any kind whatsoever, make or cause to be made, acquiesce in, or
assist in the bringing of any future suit or other action against any of the
Released Parties for any damages or other relief for any reason whatsoever,
provided, however, that this Section 3 shall not be construed to
prohibit Executive from bringing an action to enforce any breach or default
under the Severance Agreement with respect to the payment of the
post-employment termination benefits set forth therein.

 

4.             Authority to
Execute.  Executive represents and
warrants that he is fully authorized to execute and deliver this Release on
behalf of each of the Executive Parties.

 

5.             Indemnification
Under Telcordia’s Certificate of Incorporation and Bylaws, Etc.  Nothing in this Release shall be construed
so as to release the Released Parties from any obligation to indemnify the
Executive Parties following the date hereof pursuant to Telcordia’s Certificate
of Incorporation or Bylaws or otherwise for any indemnifiable third party claims or any
rights to be covered by any director and officer liability insurance.  Executive also does not waive any rights to
any accrued benefits including earned but unpaid base salary and prior year’s
bonus, accrued but unused vacation, unreimbursed business expenses and any
rights under any benefit or equity plan program or grant or any payroll
practice.

 

	
   

  	
  “Executive”

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Matthew J.
  Desch

  

 

B-2

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

EXHIBIT C

 

GROSS-UP OF PARACHUTE PAYMENT EXCISE TAX

 

(a)           In the event that
Executive shall become entitled to payments and/or benefits provided by this
Agreement or any other amounts in the “nature of compensation” (whether
pursuant to the terms of this Agreement or any other plan, arrangement or
agreement with Company, any person whose actions result in a change of
ownership or effective control covered by Section 280G(b)(2) of the Internal
Revenue Code of 1986, as amended (the “Code”), or any person affiliated with
Company or such person) as a result of such change in ownership or effective control
(collectively, the “Company Payments”), and such Company Payments will be
subject to the tax (the “Excise Tax”) imposed by Section 4999 of the Code (or
any similar tax that may hereafter be imposed by any taxing authority) Company
shall pay to Executive at the time specified in subsection (d) below (x) an
additional amount (the “Gross-Up Payment”) such that the net amount retained by
Executive, after deduction of any Excise Tax on Company Payments and any U.S.
federal, state, and for local income or payroll tax upon the Gross-Up Payment
provided for by this paragraph (a), but before deduction for any U.S. federal,
state, and local income or payroll tax on Company Payments, shall be equal to
Company Payments and (y) an amount equal to the product of any deductions
disallowed for federal, state or local income tax purposes because of the
inclusion of the Gross-Up Payment in Executive’s adjusted gross income
multiplied by the highest applicable marginal rate of federal, state or local
income taxation, respectively, for the calendar year in which the Gross-Up
Payment is to be made.

 

(b)           For purposes of
determining whether any of Company Payments and Gross-Up Payments (collectively
the “Total Payments”) will be subject to the Excise Tax and the amount of such Excise
Tax, (x) the Total Payments shall be treated as “parachute payments” within the
meaning of Section 280G(b)(2) of the Code, and all “parachute payments” in
excess of the “base amount” (as defined under Section 280G(b)(3) of the Code)
shall be treated as subject to the Excise Tax, unless and except to the extent
that, in the opinion of Company’s independent certified public accountants
appointed prior to any change in ownership (as defined under Section 280G(b)(2)
of the Code) or tax counsel selected by such accountants or Company (the
“Accountants”) such Total Payments (in whole or in part) either do not
constitute “parachute payments,” including giving effect to the recalculation
of stock options in accordance with Treasury Regulation Section 1.280G-1,
Q&A 33, represent reasonable compensation for services actually rendered
within the meaning of Section 280G(b)(4) of the Code in excess of the “base
amount” or are otherwise not subject to the Excise Tax, and (y) the value of
any non-cash benefits or any deferred payment or benefit shall be determined by
the Accountants in accordance with the principles of Section 280G of the
Code.  To the extent permitted under
Revenue Procedure 2003-68, the value determination shall be recalculated to the
extent it would be beneficial to Executive, at the request of Executive.  In the event that the Accountants are
serving as auditor for the individual, entity or group effecting the Change in
Control, Company may appoint another nationally recognized accounting firm to make
the determinations hereunder (which accounting firm shall then be referred to
as the “Accountants” hereunder).  All
determinations hereunder shall be made by the Accountants which shall provide
detailed supporting calculations both to Company and Executive at such time as
it is requested by Company or Executive. 
If the Accountants determine that payments under this Agreement must be
reduced pursuant to this paragraph, they shall furnish Executive with a written
opinion to such

 

C-1

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

effect.  The determination of
the Accountants shall be final and binding upon Company and Executive.

 

(c)           For purposes of
determining the amount of the Gross-Up Payment, Executive shall be deemed to
pay U.S. federal income taxes at the highest marginal rate of U.S. federal
income taxation in the calendar year in which the Gross-Up Payment is to be
made and state and local income taxes at the highest marginal rate of taxation
in the state and locality of Executive’s residence for the calendar year in
which Company Payment is to be made, net of the maximum reduction in U.S.
federal income taxes which could be obtained from deduction of such state and
local taxes if paid in such year.  In
the event that the Excise Tax is subsequently determined by the Accountants to
be less than the amount taken into account hereunder at the time the Gross-Up
Payment is made, Executive shall remit to Company, at the time that the amount
of such reduction in Excise Tax is finally determined, the portion of the prior
Gross-Up Payment attributable to such reduction (plus the portion of the
Gross-Up Payment attributable to the Excise Tax and U.S. federal, state and
local income tax imposed on the portion of the Gross-Up Payment being repaid by
Executive if such remittance results in a reduction in Excise Tax or a U.S.
federal, state and local income tax deduction), plus interest on the amount of
such remittance at the rate provided in Section 1274(b)(2)(B) of the Code.  Notwithstanding the foregoing, in the event
any portion of the Gross-Up Payment to be remitted to Company has been paid to
any U.S. federal, state and local tax authority, remittance thereof (and
related amounts) shall not be required until actual refund or credit of such
portion has been made to Executive, and interest payable to Company shall not
exceed the interest received or credited to Executive by such tax authority for
the period it held such portion.  The
Executive and Company shall mutually agree upon the course of action to be
pursued (and the method of allocating the expense thereof) if Executive’s claim
for refund or credit is denied.

 

In the event
that the Excise Tax is later determined by the Accountant or the Internal
Revenue Service to exceed the amount taken into account hereunder at the time
the Gross-Up Payment is made (including by reason of any payment the existence
or amount of which cannot be determined at the time of the Gross-Up Payment),
Company shall make an additional Gross-Up Payment in respect of such excess
(plus any interest or penalties payable with respect to such excess) at the
time that the amount of such excess is finally determined.

 

(d)           The Gross-Up Payment or
portion thereof provided for in subsection (c) above shall be paid not later
than the ninetieth (90th) day following an event occurring which subjects
Executive to the Excise Tax; provided, however, that if the amount of such
Gross-Up Payment or portion thereof cannot be finally determined on or before
such day, Company shall pay to Executive on such day an estimate, as determined
in good faith by the Accountant, of the minimum amount of such payments and
shall pay the remainder of such payments (together with interest at the rate
provided in Section 1274(b)(2)(B) of the Code), subject to further payments
pursuant to subsection (c) hereof, as soon as the amount thereof can reasonably
be determined, but in no event later than the one hundred-twentieth (120th)
day after the occurrence of the event subjecting Executive to the Excise
Tax.  In the event that the amount of
the estimated payments exceeds the amount subsequently determined to have been
due, such excess shall be repaid to Company by Executive, payable on the fifth
day after demand by Company (together with interest at the rate provided in
Section 1274(b)(2)(B) of the Code).

 

C-2

 

Note: 
Redacted portions have been marked with (***).  The redacted portions are subject to a request for confidential
treatment and have been filed separately with the Securities and Exchange
Commission.

 

(e)           In the event of any
controversy with the Internal Revenue Service (or other taxing authority) with
regard to the Excise Tax, Executive shall permit Company to control issues
related to the Excise Tax (at its expense), provided that such issues do not
potentially materially adversely affect Executive, but Executive shall control
any other issues.  In the event the
issues are interrelated, Executive and Company shall in good faith cooperate so
as not to jeopardize resolution of either issue, but if the parties cannot
agree the Accountant shall make the final determination with regard to the
issues.  In the event of any conference
with any taxing authority as to the Excise Tax or associated income taxes,
Executive shall permit the representative of Company to accompany Executive,
and Executive and Executive’s representative shall cooperate with Company and
its representative.

 

(f)            The Company shall be
responsible for all charges of the Accountant.

 

(g)           The Company and
Executive shall promptly deliver to each other copies of any written
communications, and summaries of any verbal communications, with any taxing
authority regarding the Excise Tax covered by this provision.

 

(h)           Nothing in this Exhibit
C is intended to violate the Sarbanes-Oxley Act and to the extent that any
remittance obligation hereunder would do so, such obligation shall be modified
so as to make the amount to be remitted a nonrefundable payment to you and the
remittance obligation null and void.

 

C-3

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