Exhibit 10.8

 

EXECUTION VERSION

 

CREDIT AGREEMENT, dated as of February 18, 2004 (herein, as amended,
supplemented or otherwise modified from time to time, “this Agreement”), among
the following:

 

(i) CALGON CARBON CORPORATION, a Delaware corporation (herein, together with its
successors and assigns, the “Borrower”);

 

(ii) the lending institutions listed in Annex I hereto (herein, together with
its or their successors and assigns, each a “Lender” and collectively, the
“Lenders”); and

 

(iii) NATIONAL CITY BANK OF PENNSYLVANIA, a national banking association, as one
of the Lenders, as the Lender under the Swing Line Revolving Facility referred
to herein (together with its successors and assigns, in such capacity, the
“Swing Line Lender”), as the lead arranger and book manager and as
administrative agent (in such capacity, the “Administrative Agent”).

 

PRELIMINARY STATEMENTS:

 

(1) Unless otherwise defined herein, all capitalized terms used herein and
defined in section 1 are used herein as so defined.

 

(2) The Borrower has applied to the Lenders for credit facilities in order to
(i) refinance certain indebtedness of the Borrower; (ii) finance the acquisition
of substantially all of the assets of Barnebey Sutcliffe Corporation, an Ohio
corporation, and all of the issued and outstanding capital stock of Waterlink
(UK) Holdings Limited (together, the “Purchased Entities”) to be purchased
pursuant to the Purchase Agreement (defined herein) and (iii) provide working
capital and funds for capital expenditures and other lawful purposes.

 

(3) Subject to and upon the terms and conditions set forth herein, the Lenders
are willing to make available to the Borrower the credit facilities provided for
herein.

 

NOW, THEREFORE, it is agreed and the parties intending to be legally bound
hereby:

 

SECTION 1. DEFINITIONS AND TERMS.

 

1.1. Certain Defined Terms. As used herein, the following terms shall have the
meanings herein specified unless the context otherwise requires:

 

“Account” shall mean any present or future right to payment for goods sold or
leased or for services rendered, whether now existing or hereafter arising and
whether or not earned by performance.

 

“Acquisition” shall mean and include (i) any acquisition on a going concern
basis (whether by purchase, lease or otherwise) of any facility and/or business
operated by any person who is not a Subsidiary of the Borrower, and (ii) any
acquisition of a majority of the outstanding equity or other similar interests
in any such person (whether by merger, stock purchase or otherwise).

 

“Administrative Agent” shall have the meaning provided in the first paragraph of
this Agreement and shall include any successor to the Administrative Agent
appointed pursuant to section 12.9.

 

“Affiliate” shall mean, with respect to any person, any other person directly or
indirectly controlling, controlled by, or under direct or indirect common
control with such person. A person shall be deemed to control a second person if
such first person possesses, directly or indirectly, the power (i) to

 

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vote 10% or more of the securities having ordinary voting power for the election
of directors or managers of such second person or (ii) to direct or cause the
direction of the management and policies of such second person, whether through
the ownership of voting securities, by contract or otherwise. Notwithstanding
the foregoing, (x) a director, officer or employee of a person shall not, solely
by reason of such status, be considered an Affiliate of such person; and (y)
neither the Administrative Agent nor any Lender shall in any event be considered
an Affiliate of the Borrower or any of its Subsidiaries.

 

“Agreement” shall have the meaning provided in the introductory paragraph of
this Agreement.

 

“Alternative Currency” shall mean and include: (i) the currencies listed on
Annex VIII, if at the time the applicable currency is readily and freely
transferable and convertible into Dollars; and (ii) any other lawful currency
other than Dollars that is readily and freely transferable and convertible into
Dollars and is acceptable to the Lenders as provided in section 2.3(b), as
applicable, and any applicable Letter of Credit Issuer.

 

“Alternative Currency Sublimit” shall have the meaning provided in section
2.1(a).

 

“Applicable Eurodollar Margin” shall have the meaning provided in section
2.8(h).

 

“Applicable Facility Fee Rate” shall have the meaning provided in section
4.1(b).

 

“Applicable Lending Office” shall mean, with respect to each Lender, (i) such
Lender’s Domestic Lending Office in the case of Borrowings consisting of Prime
Rate Loans and (ii) such Lender’s Eurodollar Lending Office in the case of
Borrowings consisting of Eurodollar Loans.

 

“Applicable Prime Rate Margin” shall have the meaning provided in section
2.8(h).

 

“Approved Bank” shall have the meaning provided in the definition of Cash
Equivalents.

 

“Asset Sale” shall mean the sale, transfer or other disposition (including by
means of Sale and Lease-Back Transactions, and by means of mergers,
consolidations, and liquidations of a corporation, partnership or limited
liability company of the interests therein of the Borrower or any Subsidiary) by
the Borrower or any Subsidiary to any person other than the Borrower or any
Subsidiary of any of their respective assets, provided that the term Asset Sale
specifically excludes any sales, transfers or other dispositions of inventory,
or obsolete or excess furniture, fixtures, equipment or other property, tangible
or intangible, in each case in the ordinary course of business.

 

“Assignment Agreement” shall mean an Assignment Agreement substantially in the
form of Exhibit E hereto.

 

“AST” shall mean Advanced Separation Technologies, Inc., a Florida corporation.

 

“Authorized Officer” shall mean any officer or employee of the Borrower
designated as such in writing to the Administrative Agent by the Borrower.

 

“Bankruptcy Code” shall have the meaning provided in section 11.1(g).

 

“Basket Investments” shall have the meaning provided in section 10.5(m).

 

“Borrower” shall have the meaning provided in the first paragraph of this
Agreement.

 

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“Borrowing” shall mean (i) the incurrence of General Revolving Loans consisting
of one Type of Loan, by the Borrower from all of the Lenders having Commitments
in respect thereof on a pro rata basis on a given date (or resulting from
Conversions, Continuations or Redenominations on a given date), having in the
case of Eurodollar Loans the same Interest Period, or (ii) the incurrence of a
Swing Line Revolving Loan of a single Type from the Swing Line Lender on a given
date.

 

“Business Day” shall mean: (i) for all purposes other than as covered by clause
(ii) below, any day excluding Saturday, Sunday and any day that shall be in the
city in which the applicable Payment Office is located a legal holiday or a day
on which banking institutions are authorized by law or other governmental
actions to close; and (ii) with respect to all notices and determination in
connection with, and payments of principal and interest on, Eurodollar Loans,
any day that is a Business Day described in clause (i) and that is also a day on
which dealings are carried on in the London interbank market and banks are open
for business in London and in the country of issue of any Alternative Currency
in which any applicable Eurodollar Loans are denominated.

 

“Capital Lease” as applied to any person shall mean any lease of any property
(whether real, personal or mixed) by that person as lessee that, in conformity
with GAAP, is accounted for as a capital lease on the balance sheet of that
person.

 

“Capitalized Lease Obligations” shall mean all obligations under Capital Leases
of the Borrower or any of its Subsidiaries in each case taken at the amount
thereof accounted for as liabilities identified as “capital lease obligations”
(or any similar words) on a consolidated balance sheet of the Borrower and its
Subsidiaries prepared in accordance with GAAP.

 

“Cash Equivalents” shall mean any of the following (including foreign
equivalents thereof):

 

(i) securities issued or directly and fully guaranteed or insured by the United
States of America or any agency or instrumentality thereof (provided that the
full faith and credit of the United States of America is pledged in support
thereof) having maturities of not more than one year from the date of
acquisition;

 

(ii) U.S. dollar denominated time deposits, certificates of deposit and bankers’
acceptances of (x) any Lender or (y) any bank whose short-term commercial paper
rating from S&P is at least A-1 or the equivalent thereof or from Moody’s is at
least P-1 or the equivalent thereof (any such bank, an “Approved Bank”), in each
case with maturities of not more than 180 days from the date of acquisition;

 

(iii) commercial paper issued by any Lender or Approved Bank or by the parent
company of any Lender or Approved Bank and commercial paper issued by, or
guaranteed by, any industrial or financial company with a short-term commercial
paper rating of at least A-1 or the equivalent thereof by S&P or at least P-1 or
the equivalent thereof by Moody’s, or guaranteed by any industrial company with
a long term unsecured debt rating of at least A or A2, or the equivalent of each
thereof, from S&P or Moody’s, as the case may be, and in each case maturing
within 270 days after the date of acquisition;

 

(iv) investments in money market funds substantially all the assets of which are
comprised of securities of the types described in clauses (i) through (iii)
above; and

 

(v) investments in money market funds access to which is provided as part of
“sweep” accounts maintained with a Lender or an Approved Bank.

 

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“Cash Proceeds” shall mean, with respect to any: (i) Asset Sale, the aggregate
cash payments (including any cash received by way of deferred payment pursuant
to a note receivable issued in connection with such Asset Sale, other than the
portion of such deferred payment constituting interest, but only as and when so
received) received by the Borrower and/or any Subsidiary from such Asset Sale;
(ii) Event of Loss, the aggregate cash payments received by the Borrower and/or
any Subsidiary as the result of such Event of Loss; and (iii) Material Recovery
Event, the aggregate cash payments received by the Borrower and/or any
Subsidiary as the result of such Material Recovery Event.

 

“CERCLA” shall mean the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as the same may be amended from time to time, 42 U.S.C. §
9601 et seq.

 

“Change of Control” shall mean and include any of the following:

 

(i) during any period of two consecutive calendar years, individuals who at the
beginning of such period constituted the Borrower’s Board of Directors (together
with any new directors (x) whose election by the Borrower’s Board of Directors
was, or (y) whose nomination for election by the Borrower’s shareholders was
(prior to the date of the proxy or consent solicitation relating to such
nomination), approved by a vote of at least two-thirds of the directors then
still in office who either were directors at the beginning of such period or
whose election or nomination for election was previously so approved), shall
cease for any reason to constitute a majority of the directors then in office;

 

(ii) any person or group (as such term is defined in section 13(d)(3) of the
1934 Act) shall acquire, directly or indirectly, beneficial ownership (within
the meaning of Rule 13d-3 and 13d-5 of the 1934 Act) of more than 35%, on a
fully diluted basis, of the economic or voting interest in the Borrower’s
capital stock;

 

(iii) the shareholders of the Borrower approve a merger or consolidation of the
Borrower with any other person, other than a merger or consolidation that would
result in the voting securities of the Borrower outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted or exchanged for voting securities of the surviving or resulting
entity) more than 75% of the combined voting power of the voting securities of
the Borrower or such surviving or resulting entity outstanding after such merger
or consolidation;

 

(iv) the shareholders of the Borrower approve a plan of complete liquidation of
the Borrower or an agreement or agreements for the sale or disposition by the
Borrower of all or substantially all of the Borrower’s assets; and/or

 

(v) any “change in control” or any similar term as defined in any of the
indentures, credit agreements, note or securities purchase agreements, or other
agreements or instruments governing any Indebtedness of the Borrower or any of
its Subsidiaries with an outstanding principal amount, or providing for
commitments to lend or otherwise invest or purchase in an outstanding principal
amount, of at least $10,000,000 (or the equivalent amount in any other
currency).

 

“Claims” shall have the meaning provided in the definition of Environmental
Claims.

 

“Closing Date” shall mean the date, on or after the Effective Date, upon which
the conditions specified in section 7.1 are satisfied.

 

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“Code” shall mean the Internal Revenue Code of 1986, as amended from time to
time, and the regulations promulgated thereunder. Section references to the Code
are to the Code, as in effect at the Effective Date and any subsequent
provisions of the Code, amendatory thereof, supplemental thereto substituted
therefor.

 

“Commitment” shall mean, with respect to each Lender, its General Revolving
Commitment or its Swing Line Revolving Commitment, or both, as the case may be.

 

“Confidential Information” shall have the meaning provided in section 13.15.

 

“Consolidated Amortization Expense” shall mean, for any period, all amortization
expenses, including without limitation, amortization of goodwill, of the
Borrower and its Subsidiaries, all as determined for the Borrower and its
Subsidiaries on a consolidated basis in accordance with GAAP.

 

“Consolidated Capital Expenditures” shall mean, for any period, the aggregate of
all expenditures for property, plant or equipment (whether paid in cash or
accrued as liabilities and including in all events amounts expended or
capitalized under Capital Leases and Synthetic Leases but excluding any amount
representing capitalized interest) by the Borrower and its Subsidiaries during
that period.

 

“Consolidated Cash” shall mean, as of any date, the aggregate cash and Cash
Equivalents held by the Borrower and its Subsidiaries.

 

“Consolidated Depreciation Expense” shall mean, for any period, all depreciation
expenses of the Borrower and its Subsidiaries, all as determined for the
Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP.

 

“Consolidated EBIT” shall mean, for any period, Consolidated Net Income for such
period; plus the sum (without duplication) of the amounts for such period
included in determining such Consolidated Net Income of (i) Consolidated
Interest Expense, (ii) Consolidated Income Tax Expense, (iii) extraordinary and
other non-recurring non-cash losses and charges, (iv) expenses attributable to
stock options, (v) one time expenses incurred or accrued on or prior to March
31, 2003 associated with the resignation and separation of Jim Cederna in an
amount not to exceed $2,000,000; (vi) one time non-cash restructuring,
reorganization and implementation charges associated with Permitted
Dispositions, and (vii) the cumulative effect of changes in accounting
principles adopted after the date hereof less (B) extraordinary or other
non-recurring gains, all as determined for the Borrower and its Subsidiaries on
a consolidated basis in accordance with GAAP, except that in computing
Consolidated Net Income for purposes of this definition, there shall be excluded
therefrom (x) the income (or loss) of any entity (other than Subsidiaries of the
Borrower) in which the Borrower or any of its Subsidiaries has a joint or
minority interest, except to the extent of the amount of dividends or other
distributions actually paid to the Borrower or any of its Subsidiaries during
such period, and (y) the income of any Subsidiary of the Borrower to the extent
that the declaration or payment of dividends or similar distributions by that
Subsidiary of that income is not at the time permitted by operation of the terms
of its charter or any agreement, instrument, judgment, decree, order, statute,
rule or governmental regulation applicable to that Subsidiary; and provided
that, notwithstanding anything to the contrary contained herein, the Borrower’s
Consolidated EBIT for any Testing Period shall (x) include the appropriate
financial items for any or business unit that has been acquired by the Borrower
for any portion of such Testing Period prior to date of acquisition, and (y)
exclude the appropriate financial items for any person or business unit that has
been disposed of by the Borrower, for the portion of such Testing Period prior
to the date of disposition, and provided further that the Consolidated EBIT for
the Purchased Entities will be deemed to be (i) $1,500,000 for each of the
fiscal quarters ended June 30, 2003, September 30, 2003 and December 31, 2003,
and (ii) $750,000 for the period from January 1, 2004 through and including the
Closing Date.

 

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“Consolidated EBITDA” shall mean, for any period, Consolidated EBIT for such
period; plus (A) the sum (without duplication) of the amounts for such period
included in determining such Consolidated Net Income of (i) Consolidated
Depreciation Expense, and (ii) Consolidated Amortization Expense, all as
determined for the Borrower and its Subsidiaries on a consolidated basis in
accordance with GAAP, provided that, notwithstanding anything to the contrary
contained herein, the Borrower’s Consolidated EBITDA for any Testing Period
shall (x) include the appropriate financial items for any person or business
unit that has been acquired by the Borrower for any portion of such Testing
Period prior to the date of acquisition, and (y) exclude the appropriate
financial items for any person or business unit that has been disposed of by the
Borrower, for the portion of such Testing Period prior to the date of
disposition, and provided further that the Consolidated EBITDA for the Purchased
Entities will be deemed to be (i) $1,875,000 for each of the fiscal quarters
ended June 30, 2003, September 30, 2003 and December 31, 2003, and (ii) $937,000
for the period from January 1, 2004 through and including the Closing Date.

 

“Consolidated Income Tax Expense” shall mean, for any period, all provisions for
taxes based on the net income of the Borrower or any of its Subsidiaries, all as
determined for the Borrower and its Subsidiaries on a consolidated basis in
accordance with GAAP.

 

“Consolidated Interest Expense” shall mean, for any period, interest expense net
of interest income of the Borrower and its Subsidiaries on a consolidated basis
with respect to all outstanding Indebtedness of the Borrower and its
Subsidiaries, all as determined for the Borrower and its Subsidiaries on a
consolidated basis in accordance with GAAP.

 

“Consolidated Net Income” shall mean for any period, the net income (or loss) of
the Borrower and its Subsidiaries on a consolidated basis for such period taken
as a single accounting period determined in conformity with GAAP.

 

“Consolidated Net Worth” shall mean at any time for the determination thereof
(i) all amounts that, in conformity with GAAP (without giving effect to any
non-cash losses as a result of impairment of goodwill as required by Statement
of Financial Accounting Standards No. 142), would be included under the caption
“total stockholders’ equity” (or any like caption) on a consolidated balance
sheet of the Borrower as at such date, provided that in no event shall
Consolidated Net Worth include any amounts in respect of Redeemable Stock.

 

“Consolidated Total Assets” shall mean with respect to any person at any date of
determination the net book value of all assets that would appear on a
consolidated balance sheet of such person and its consolidated Subsidiaries at
such date that is prepared in accordance with GAAP.

 

“Consolidated Total Debt” shall mean the sum (without duplication) of the
principal amount (or Capitalized Lease Obligation, in the case of a Capital
Lease, or present value, based on the implicit interest rate, in the case of any
Synthetic Lease, or the higher of liquidation value or stated value, in the case
of Redeemable Stock) of all Indebtedness of the Borrower and each of its
Subsidiaries, all as determined on a consolidated basis, minus Consolidated
Cash.

 

“Continue,” “Continuation” and “Continued” each refers to a continuation of a
General Revolving Loan that is a Eurodollar Loans for an additional Interest
Period as provided in section 2.9.

 

“Convert,” “Conversion” and “Converted” each refers to a conversion of General
Revolving Loans of one Type into General Revolving Loans of another Type,
pursuant to section 2.7, 2.9(b), 2.10 or 6.2.

 

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“Credit Documents” shall mean this Agreement, the Notes and each other document
or agreement executed in connection herewith.

 

“Credit Party” shall mean the Borrower and each Subsidiary Guarantor.

 

“Default” shall mean any event, act or condition that with notice or lapse of
time, or both, would constitute an Event of Default.

 

“Defaulting Lender” shall mean any Lender with respect to which a Lender Default
is in effect.

 

“Designated Hedge Agreement” shall mean any Hedge Agreement to which the Company
or any of its Subsidiaries is a party which, pursuant to (x) a written
instrument signed by the Administrative Agent and (y) the following provisions,
has been designated as a Designated Hedge Agreement so that the Company’s or
Subsidiary’s counterparty’s credit exposure thereunder will be entitled to share
in the benefits of the Subsidiary Guaranty and any other Credit Documents to the
extent the Subsidiary Guaranty and such Credit Documents provide guarantees or
security for creditors of the Company or any Subsidiary under Designated Hedge
Agreements:

 

(i) The Administrative Agent will, without the approval or consent of the
Lenders, designate a Hedge Agreement entered into with a Lender or an Affiliate
of a Lender as a Designated Hedge Agreement.

 

(ii) If so requested by the Company, the Administrative Agent may, without the
approval or consent of the Lenders, designate a Hedge Agreement as a Designated
Hedge Agreement.

 

(iii) Notwithstanding clause (ii) above, the Administrative Agent will not
designate any Hedge Agreement as a Designated Hedge Agreement without the
approval, consent or instructions of the Required Lenders, unless the
Administrative Agent reasonably determines, at the time of such designation and
after giving effect thereto, in accordance with its own customary valuation
practices, that the maximum aggregate credit exposure to the Company and its
Subsidiaries of all counterparties under all Designated Hedge Agreements is not
more than $10,000,000.

 

(iv) It shall be a condition to the rights of any counterparty creditor of the
Company or any Subsidiary under any Designated Hedge Agreement to share in any
recoveries of enforcement of the Subsidiary Guaranty and of the Credit
Documents, that such counterparty creditor shall have entered into an
intercreditor or similar agreement with the Administrative Agent under which
recoveries from the Company and its Subsidiaries with respect to such Designated
Hedge Agreement will be shared in a manner consistent with the provisions of
section 11.3 hereof.

 

“Dollars,” “U.S. dollars,” “dollars” and the sign “$” each means lawful money of
the United States.

 

“Domestic Lending Office” shall mean, with respect to any Lender, the office of
such Lender specified as its Domestic Lending Office in Annex I or in the
Assignment Agreement pursuant to which it became a Lender, or such other office
of such Lender as such Lender may from time to time specify to the Borrower and
the Administrative Agent.

 

“Domestic Subsidiary” shall mean any Subsidiary other than a Foreign Subsidiary.

 

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“Effective Date” shall have the meaning provided in section 13.10.

 

“Eligible Accounts Receivable” shall mean, as of any date, the gross outstanding
balance on such date, determined in accordance with GAAP and stated on a basis
consistent with the historical practices of the Borrower as of the Closing Date,
of Accounts of the Borrower and its Subsidiaries, less the sum of (x) reserves
established in respect of Accounts and (y) any amount that the Administrative
Agent determines in its good faith business judgment to be ineligible for
purposes of calculating the covenant set forth in section 10.7.

 

“Eligible Inventory” shall mean, as of any date, the aggregate value of the
Inventory of the Borrower and its Subsidiaries valued at the lower of cost or
market and on a first-in, first-out basis, excluding such Inventory as the
Administrative Agent determines in its good faith business judgment to be
ineligible for purposes of calculating the covenant set forth in section 10.7.

 

“Eligible PP&E” shall mean, as of any date, the net book value of the property,
plant and equipment of the Borrower and its Subsidiaries as reflected on the
Borrower’s most recent financial statements.

 

“Eligible Transferee” shall mean and include a commercial bank, financial
institution or other “accredited investor” (as defined in SEC Regulation D), in
each case that:

 

(i) is not disapproved in writing by the Borrower in a notice given to a
requesting Lender and the Administrative Agent, specifying the reasons for such
disapproval, within five Business Days following the giving of notice to the
Borrower of the identity of any proposed transferee (any such disapproval by the
Borrower must be reasonable), provided that (a) this subclause (i) shall not
apply in the case of any participation permitted pursuant to section 13.4(b) and
(b) Borrower shall not be entitled to exercise the foregoing right of
disapproval if and so long as any Event of Default shall have occurred and be
continuing; and

 

(ii) is not a direct competitor of the Borrower or engaged in the same or
similar principal lines of business as the Borrower and its Subsidiaries
considered as a whole, or a Subsidiary of any such competitor of the Borrower
and its Subsidiaries.

 

“Environmental Claims” shall mean any and all administrative, regulatory or
judicial actions, suits, demands, demand letters, claims, liens, notices of
non-compliance or violation, investigations or proceedings relating in any way
to any Environmental Law or any permit issued under any such law (hereafter
“Claims”), including, without limitation, (i) any and all Claims by governmental
or regulatory authorities for enforcement, cleanup, removal, response, remedial
or other actions or damages pursuant to any applicable Environmental Law, and
(ii) any and all Claims by any third party seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief resulting from
the storage, treatment or Release (as defined in CERCLA) of any Hazardous
Materials or arising from alleged injury or threat of injury to health, safety
or the environment.

 

“Environmental Law” shall mean any applicable Federal, state, foreign or local
statute, law, rule, regulation, ordinance, code, binding and enforceable
guideline, binding and enforceable written policy and rule of common law now or
hereafter in effect and in each case as amended, and any binding and enforceable
judicial or administrative interpretation thereof, including any judicial or
administrative order, consent, decree or judgment issued to or rendered against
the Borrower or any of its Subsidiaries relating to the environment, employee
health and safety or Hazardous Materials, including, without limitation, CERCLA;
RCRA; the Federal Water Pollution Control Act, 33 U.S.C. § 2601 et seq.; the
Clean Air Act, 42 U.S.C. § 7401 et seq.; the Safe Drinking Water Act, 42 U.S.C.
§ 3803 et seq.; the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et seq.; the
Emergency Planning and the Community Right-to-Know

 

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Act of 1986, 42 U.S.C. § 11001 et seq., the Hazardous Material Transportation
Act, 49 U.S.C. § 1801 et seq.; and the Occupational Safety and Health Act, 29
U.S.C. § 651 et seq. (to the extent it regulates occupational exposure to
Hazardous Materials); and any state and local or foreign counterparts or
equivalents, in each case as amended from time to time.

 

“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the regulations promulgated and rulings issued
thereunder. Section references to ERISA are to ERISA, as in effect at the
Effective Date and any subsequent provisions of ERISA, amendatory thereof,
supplemental thereto or substituted therefor.

 

“ERISA Affiliate” shall mean each person (as defined in section 3(9) of ERISA)
that together with the Borrower or a Subsidiary of the Borrower would be deemed
to be a “single employer”: (i) within the meaning of section 414(b),(c), (m) or
(o) of the Code; or (ii) as a result of the Borrower or a Subsidiary of the
Borrower being or having been a general partner of such person.

 

“Eurodollar Lending Office” shall mean, with respect to any Lender, the office
of such Lender specified as its Eurodollar Lending Office in Annex I or in the
Assignment Agreement pursuant to which it became a Lender, or such other office
or offices (for Eurodollar Loans denominated in Dollars or Alternative
Currencies) of such Lender as such Lender may from time to time specify to the
Borrower and the Administrative Agent.

 

“Eurodollar Loans” shall mean each Loan, denominated in Dollars or in an
Alternative Currency, bearing interest at the rates provided in section 2.8(b).

 

“Eurodollar Market Index Rate” shall mean, as of any date, the Eurodollar Rate
applicable to Eurodollar Loans with one month Interest Periods.

 

“Eurodollar Market Index Rate Loans” shall mean each Swing Line Revolving Loan
bearing interest at the rate provided in section 2.8(c).

 

“Eurodollar Rate” shall mean, with respect to each Interest Period for a
Eurodollar Loan, (A) either (i) the rate per annum for deposits in Dollars or in
the relevant Alternative Currency for a maturity most nearly comparable to such
Interest Period that appears on page 3740 or 3750, as applicable, of the Dow
Jones Telerate Screen as of 11:00 A.M. (local time at the Notice Office) on the
date that is two Business Days prior to the commencement of such Interest
Period, or (ii) if such a rate does not appear on such a page, an interest rate
per annum equal to the average (rounded upward to the nearest whole multiple of
1/16 of 1% per annum, if such average is not such a multiple) of the rate per
annum at which deposits in Dollars or in the relevant Alternative Currency are
offered to each of the Reference Banks by prime banks in the London interbank
Eurocurrency market for deposits of amounts in same day funds comparable to the
outstanding principal amount of the Eurodollar Loan for which an interest rate
is then being determined with maturities comparable to the Interest Period to be
applicable to such Eurodollar Loan, determined as of 11:00 A.M. (London time) on
the date that is two Business Days prior to the commencement of such Interest
Period, in each case divided (and rounded upward to the nearest whole multiple
of 1/16th of 1%) by (B) a percentage equal to 100% minus the then stated maximum
rate of all reserve requirements (including, without limitation, any marginal,
emergency, supplemental, special or other reserves) applicable to any member
bank of the Federal Reserve System in respect of Eurocurrency liabilities as
defined in Regulation D (or any successor category of liabilities under
Regulation D); provided, however, that in the event that the rate referred to in
clause (i) above is not available at any such time for any reason, then the rate
referred to in clause (i) shall instead be the average (rounded to the nearest
ten thousandth of 1%) of the rates at which U.S. dollar deposits of $5,000,000
are offered to the Reference Banks in the London interbank market at
approximately 11:00 a.m. (London

 

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time), two Business Days prior to the commencement of such Interest Period, for
contracts that would be entered into at the commencement of such Interest
Period.

 

“Euros” shall mean the single currency of the European Union.

 

“Event of Default” shall have the meaning provided in section 11.1.

 

“Event of Loss” shall mean, with respect to any property: (i) the actual or
constructive total loss of such property or the use thereof, resulting from
destruction, damage beyond repair, or the rendition of such property permanently
unfit for normal use from any casualty or similar occurrence whatsoever; (ii)
the destruction or damage of a portion of such property from any casualty or
similar occurrence whatsoever under circumstances in which such damage cannot
reasonably be expected to be repaired, or such property cannot reasonably be
expected to be restored to its condition immediately prior to such destruction
or damage, within 180 days after the occurrence of such destruction or damage;
(iii) the condemnation, confiscation or seizure of, or requisition of title to
or use of, any property; or (iv) in the case of any property located upon a
Leasehold, the termination or expiration of such Leasehold.

 

“Existing Credit Agreement” shall mean that certain Credit Agreement, dated
March 21, 2003, among the Borrower, NCB, as the administrative agent and the
lending institutions listed on Annex I thereto.

 

“Existing Indebtedness” shall have the meaning provided in section 8.18.

 

“Existing Indebtedness Agreements” shall have the meaning provided in section
8.18.

 

“Existing Letter of Credit” shall have the meaning provided in section 3.1(d).

 

“Facility” shall mean the General Revolving Facility or the Swing Line Revolving
Facility, as applicable.

 

“Facility Fee” shall have the meaning provided in section 4.1(a).

 

“Federal Funds Effective Rate” shall mean, for any period, a fluctuating
interest rate equal for each day during such period to 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 (or,
if such day 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 that is a Business Day, the average of the quotations for such day on such
transactions received by the Administrative Agent from three Federal Funds
brokers of recognized standing selected by the Administrative Agent.

 

“Fees” shall mean all amounts payable pursuant to, or referred to in, section 4.

 

“Facing Fee” shall have the meaning provided in section 4.3.

 

“Financial Projections” shall have the meaning provided in section 8.8(b).

 

“Foreign Lender” shall mean a person that is not a United States person (as such
term is defined in section 7701(a)(30) of the Code) for Federal Income Tax
purposes.

 

“Foreign Subsidiary” shall mean any Subsidiary: (i) that is not incorporated in
the United States and substantially all of whose assets and properties are
located, or substantially all of whose business is

 

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carried on, outside the United States; or (ii) substantially all of whose assets
consist of Subsidiaries that are Foreign Subsidiaries as defined in clause (i)
of this definition.

 

“GAAP” shall mean generally accepted accounting principles in the United States
of America as in effect from time to time; it being understood and agreed that
determinations in accordance with GAAP for purposes of section 10, including
defined terms as used therein, are subject (to the extent provided therein) to
sections 1.3 and 13.7(a).

 

“General Revolving Commitment” shall mean, with respect to each Lender, the
amount, if any, set forth opposite such Lender’s name in Annex I as its “General
Revolving Commitment” as the same may be reduced from time to time pursuant to
section 5.1, 5.2 and/or 11.2 or adjusted from time to time as a result of
assignments to or from such Lender pursuant to section 13.4.

 

“General Revolving Facility” shall mean the credit facility evidenced by the
Total General Revolving Commitment.

 

“General Revolving Facility Percentage” shall mean at any time for any Lender
with a General Revolving Commitment, the percentage obtained by dividing such
Lender’s General Revolving Commitment by the Total General Revolving Commitment,
provided, that if the Total General Revolving Commitment has been terminated,
the General Revolving Facility Percentage for each Lender with a General
Revolving Commitment shall be determined by dividing such Lender’s General
Revolving Commitment immediately prior to such termination by the Total General
Revolving Commitment immediately prior to such termination.

 

“General Revolving Loan” shall have the meaning provided in section 2.1(a).

 

“General Revolving Note” shall have the meaning provided in section 2.6(a).

 

“Granting Lender” shall have the meaning provided in section 13.4(f).

 

“Guaranty Obligations” shall mean as to any person (without duplication) any
obligation of such person guaranteeing any Indebtedness (“primary Indebtedness”)
of any other person (the “primary obligor”) in any manner, whether directly or
indirectly, including, without limitation, any obligation of such person,
whether or not contingent, (a) to purchase any such primary Indebtedness or any
property constituting direct or indirect security therefor, (b) to advance or
supply funds (i) for the purchase or payment of any such primary Indebtedness or
(ii) to maintain working capital or equity capital of the primary obligor or
otherwise to maintain the net worth or solvency of the primary obligor, (c) to
purchase property, securities or services primarily for the purpose of assuring
the owner of any such primary Indebtedness of the ability of the primary obligor
to make payment of such primary Indebtedness, or (d) otherwise to assure or hold
harmless the owner of such primary Indebtedness against loss in respect thereof,
provided, however, that the term Guaranty Obligation shall not include
endorsements of instruments for deposit or collection in the ordinary course of
business. The amount of any Guaranty Obligation shall be deemed to be an amount
equal to the stated or determinable amount of the primary Indebtedness in
respect of that such Guaranty Obligation is made or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof
(assuming such person is required to perform thereunder) as determined by such
person in good faith.

 

“Hazardous Materials” shall mean: (i) any petrochemical or petroleum products,
radioactive materials, asbestos in any form that is or could become friable,
urea formaldehyde foam insulation, transformers or other equipment that contain
dielectric fluid containing levels of polychlorinated biphenyls, and radon gas;
and (ii) any chemicals, materials or substances defined as or included in the
definition of “hazardous substances,” “hazardous wastes,” “hazardous materials,”
“restricted hazardous

 

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materials,” “extremely hazardous wastes,” “restrictive hazardous wastes,” “toxic
substances,” “toxic pollutants,” “contaminants” or “pollutants,” or words of
similar meaning and regulatory effect, under any applicable Environmental Law.

 

“Hedge Agreement” shall mean any interest rate swap agreement, any interest rate
cap agreement, any interest rate collar agreement or other similar agreement or
arrangement designed to protect against fluctuations in interest rates;
provided, however, that in each case, the documentation with respect to such
arrangements shall conform to any form of master agreement published by the
International Swaps and Derivatives Association, Inc.

 

“Indebtedness” of any person shall mean without duplication:

 

(i) all indebtedness of such person for borrowed money;

 

(ii) all bonds, notes, debentures and similar debt securities of such person;

 

(iii) the deferred purchase price of capital assets or services that in
accordance with GAAP would be shown on the liability side of the balance sheet
of such person;

 

(iv) the face amount of all letters of credit issued for the account of such
person and, without duplication, all drafts drawn thereunder;

 

(v) all obligations, contingent or otherwise, of such person in respect of
bankers’ acceptances;

 

(vi) all Indebtedness of a second person secured by any Lien on any property
owned by such first person, whether or not such Indebtedness has been assumed;

 

(vii) all Capitalized Lease Obligations of such person;

 

(viii) the present value, determined on the basis of the implicit interest rate,
of all basic rental obligations under all Synthetic Leases of such person;

 

(ix) all net obligations of such person under Hedge Agreements;

 

(x) the full outstanding balance of trade receivables, notes or other
instruments sold with full recourse (and the portion thereof subject to
potential recourse, if sold with limited recourse), other than in any such case
any thereof sold solely for purposes of collection of delinquent accounts;

 

(xi) the stated value, or liquidation value if higher, of all Redeemable Stock
of such person; and

 

(xii) all Guaranty Obligations of such person;

 

provided that: (x) neither trade payables nor other similar accrued expenses, in
each case arising in the ordinary course of business, nor obligations in respect
of insurance policies or performance or surety bonds that themselves are not
guarantees of Indebtedness (nor drafts, acceptances or similar instruments
evidencing the same nor obligations in respect of letters of credit supporting
the payment of the same), shall constitute Indebtedness; and (y) the
Indebtedness of any person shall in any event include (without duplication) the
Indebtedness of any other entity (including any general partnership in which
such person is a general partner) to the extent such person is liable thereon as
a result of such person’s ownership

 

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interest in or other relationship with such entity, except to the extent the
terms of such Indebtedness provide expressly that such person is not liable
thereon.

 

“Indemnitees” shall have the meaning provided in section 13.1(f).

 

“Interest Coverage Ratio” shall mean, for any Testing Period, the ratio of (i)
Consolidated EBIT for such Testing Period, to (ii) the Consolidated Interest
Expense for such Testing Period, in each case on a consolidated basis for the
Borrower and its Subsidiaries for such Testing Period.

 

“Interest Period” with respect to any Eurodollar Loan shall mean the interest
period applicable thereto, as determined pursuant to section 2.9.

 

“Inventory” shall mean, as of any date, the net book value of the inventory of
the Borrower and its Subsidiaries as reflected on the Borrower’s most recent
financial statements.

 

“Leaseholds” of any person means all the right, title and interest of such
person as lessee or licensee in, to and under leases or licenses of land,
improvements and/or fixtures.

 

“Lender” shall have the meaning provided in the first paragraph of this
Agreement.

 

“Lender Default” shall mean: (i) the refusal (that has not been retracted) of a
Lender in violation of its obligations under this Agreement to make available
its portion of any incurrence of Loans or to fund its portion of any Swing Line
Participation Amount under section 2.5(b); or (ii) a Lender having notified the
Administrative Agent and/or the Borrower that it does not intend to comply with
such obligations, in the case of either (i) or (ii) as a result of the
appointment of a receiver or conservator with respect to such Lender at the
direction or request of any regulatory agency or authority.

 

“Lender Register” shall have the meaning provided in section 13.16.

 

“Letter of Credit” shall have the meaning provided in section 3.1(a).

 

“Letter of Credit Documents” shall have the meaning specified in section 3.2(a).

 

“Letter of Credit Fee” shall have the meaning provided in section 4.2.

 

“Letter of Credit Issuer” shall mean: (i) in respect of each Existing Letter of
Credit, the Lender that has issued same as of the Effective Date; and (ii) in
respect of any other Letter of Credit, NCB or any other Lender so long as such
Lender is a Non-Defaulting Lender and otherwise has satisfied and/or continues
to satisfy its obligations as a Letter of Credit Issuer hereunder.

 

“Letter of Credit Outstandings” shall mean, at any time, the sum, without
duplication, of (i) the aggregate Stated Amount of all outstanding Letters of
Credit and (ii) the aggregate amount of all Unpaid Drawings.

 

“Letter of Credit Request” shall have the meaning provided in section 3.2(a).

 

“Letter of Credit Sublimit” shall have the meaning provided in section 3.1(b).

 

“Lien” shall mean any mortgage, pledge, security interest, encumbrance, lien or
charge of any kind (including any agreement to give any of the foregoing, any
conditional sale or other title retention agreement or any lease in the nature
thereof).

 

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“Loan” shall have the meaning provided in section 2.1 and shall include any
General Revolving Loan or Swing Line Revolving Loan, as the case may be.

 

“Margin Stock” shall have the meaning provided in Regulation U.

 

“Material Adverse Effect” shall mean any or all of the following: (i) any
material adverse effect on the business, operations, property, assets,
liabilities or condition (financial or otherwise) of, when used with reference
to the Borrower and/or any of its Subsidiaries, the Borrower and its
Subsidiaries, taken as a whole, or when used with reference to any other person,
such person and its Subsidiaries, taken as a whole, as the case may be; (ii) any
material adverse effect on the ability of the Borrower to perform its
obligations under the Credit Documents to which it is a party; (iii) any
material adverse effect on the ability of the Borrower and its Subsidiaries,
taken as a whole, to pay their liabilities and obligations as they mature or
become due; or (iv) any material adverse effect on the validity, effectiveness
or enforceability, as against the Borrower, of any of the Credit Documents to
which it is a party.

 

“Material Recovery Event” shall mean the receipt by the Borrower or any
Subsidiary of any proceeds resulting from or awarded in connection with the
settlement or favorable decision of any litigation, arbitration, or other legal
proceeding (other than amounts, if any, specifically designated to cover fees
and expenses of counsel), in excess of $2,000,000 in any fiscal year other than
as a result of any of the items disclosed on Annex VII.

 

“Material Subsidiary” shall mean, at any time, with reference to any person, any
Subsidiary of such person (i) that has assets at such time comprising 10% or
more of the consolidated assets of such person and its Subsidiaries, or (ii)
whose operations in the current fiscal year are expected to, or whose operations
in the most recent fiscal year did (or would have if such person had been a
Subsidiary for such entire fiscal year), represent 10% or more of the
consolidated earnings before interest, taxes, depreciation and amortization of
such person and its Subsidiaries for such fiscal year; provided, however, that
to the extent all Subsidiaries of such person constituting Non-Material
Subsidiaries and Foreign Subsidiaries (a) account in the aggregate for more than
15% or more of the consolidated assets of such person and its Subsidiaries, or
(b) whose operations in the current fiscal year are expected to, or whose
operations in the most recent fiscal year did (or would have if such person had
been a Subsidiary for such entire fiscal year), represent 15% or more of the
consolidated earnings before interest, taxes, depreciation and amortization of
such person and its Subsidiaries for such fiscal year, then each such domestic
Subsidiary shall be deemed a Material Subsidiary; and provided further that
neither Solarchem nor AST will be deemed a Material Subsidiary unless and until
either such Subsidiary would be deemed a Material Subsidiary without giving
effect to the immediately preceding proviso.

 

“Maturity Date” shall mean February 18, 2007 or such earlier date on which the
Total Commitment is terminated.

 

“Minimum Borrowing Amount” shall mean: (i) for General Revolving Loans that are
(A) Prime Rate Loans, $2,500,000, with minimum increments thereafter of
$500,000, or (B) Eurodollar Loans, $5,000,000 (or the substantial equivalent
thereof in any Alternative Currency), with minimum increments thereafter of
$1,000,000 (or the substantial equivalent thereof in any Alternative Currency);
and (ii) for Swing Line Revolving Loans, $500,000, with minimum increments
thereafter of $100,000.

 

“Moody’s” shall mean Moody’s Investors Service, Inc. and its successors.

 

“Multiemployer Plan” shall mean a multiemployer plan, as defined in section
4001(a)(3) of ERISA to which the Borrower or any ERISA Affiliate is making or
accruing an obligation to make contributions or has within any of the preceding
three plan years made or accrued an obligation to make contributions.

 

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“Multiple Employer Plan” shall mean a Plan, other than a Multiemployer Plan, to
which the Borrower or any ERISA Affiliate, and one or more employers other than
the Borrower or an ERISA Affiliate, is making or accruing an obligation to make
contributions or, in the event that any such plan has been terminated, to which
the Borrower or an ERISA Affiliate made or accrued an obligation to make
contributions during any of the five plan years preceding the date of
termination of such plan.

 

“NCB” shall mean National City Bank of Pennsylvania, a national banking
association, together with its affiliates, successors and assigns.

 

“Net Cash Proceeds” shall mean, with respect to any: (i) Asset Sale, the Cash
Proceeds resulting therefrom net of (a) reasonable and customary expenses of
sale incurred in connection with such Asset Sale, and other reasonable and
customary fees and expenses incurred, and all state, and local taxes paid or
reasonably estimated to be payable by such person, as a consequence of such
Asset Sale and the payment of principal, premium and interest of Indebtedness
secured by the asset that is the subject of the Asset Sale and required to be,
and that is, repaid under the terms thereof as a result of such Asset Sale, (b)
amounts of any distributions payable to holders of minority interests in the
relevant person or in the relevant property or assets and (c) incremental income
taxes paid or payable as a result thereof; (ii) Event of Loss, the Cash Proceeds
resulting therefrom net of (a) reasonable and customary expenses incurred in
connection with such Event of Loss, and other reasonable and customary fees and
expenses incurred, and all state, and local taxes paid or reasonably estimated
to be payable by such person, as a consequence of such Event of Loss and the
payment of principal, premium and interest of Indebtedness secured by the asset
that is the subject of the Event of Loss and required to be, and that is, repaid
under the terms thereof as a result of such Event of Loss, (b) amounts of any
distributions payable to holders of minority interests in the relevant person or
in the relevant property or assets and (c) incremental income taxes paid or
payable as a result thereof; and (iii) Material Recovery Event, the Cash
Proceeds resulting therefrom net of (a) reasonable and customary expenses
incurred in connection with such Material Recovery Event, and other reasonable
and customary fees and expenses incurred, and all state, and local taxes paid or
reasonably estimated to be payable by such person, as a consequence of such
Material Recovery Event and the payment of principal, premium and interest of
Indebtedness secured by the asset that is the subject of the Material Recovery
Event and required to be, and that is, repaid under the terms thereof as a
result of such Material Recovery Event, (b) amounts of any distributions payable
to holders of minority interests in the relevant person or in the relevant
property or assets and (c) incremental income taxes paid or payable as a result
thereof

 

“Net Debt Proceeds” shall mean, with respect to the incurrence, sale or issuance
by the Borrower or any of its Subsidiaries of any Indebtedness after the date
hereof (other than any Indebtedness permitted by section 10.4), the excess of
(i) the gross cash proceeds received by such person from such incurrence, sale
or issuance, over (ii) all reasonable and customary underwriting commissions and
legal, investment banking, brokerage and accounting and other professional fees,
sales commissions and disbursements actually incurred in connection with such
incurrence, sale or issuance that have not been paid to an Affiliate of the
Borrower in connection therewith.

 

“1934 Act” shall mean the Securities Exchange Act of 1934, as amended.

 

“Non-Defaulting Lender” shall mean each Lender other than a Defaulting Lender.

 

“Non-Material Subsidiary” shall mean a Subsidiary that is not a Material
Subsidiary.

 

“Note” shall mean a General Revolving Note or a Swing Line Revolving Note, as
the case may be.

 

“Notice of Borrowing” shall have the meaning provided in section 2.3(a).

 

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“Notice of Continuation” shall have the meaning provided in section 2.9(a).

 

“Notice of Conversion” shall have the meaning provided in section 2.7(a).

 

“Notice Office” shall mean the office of the Administrative Agent at 629 Euclid
Avenue, Locator 01-3028, Cleveland, Ohio 44114, Attention: Agent Services
(facsimile: (216) 222-0012), or such other office, located in a city in the
United States Eastern Time Zone, as the Administrative Agent may designate to
the Borrower from time to time.

 

“Notice of Redenomination” shall have the meaning provided in section 2.7(b).

 

“Notice of Swing Line Refunding” shall have the meaning provided in section
2.5(a).

 

“Obligations” shall mean all amounts, direct or indirect, contingent or
absolute, of every type or description, and at any time existing, owing by the
Borrower to the Administrative Agent or any Lender pursuant to the terms of this
Agreement or any other Credit Document.

 

“Operating Lease” as applied to any person shall mean any lease of any property
(whether real, personal or mixed) by that person as lessee that, in conformity
with GAAP, is not accounted for as a Capital Lease on the balance sheet of that
person.

 

“Participant” shall have the meaning provided in section 3.4(a).

 

“Payment Office” shall mean the office of the Administrative Agent at 629 Euclid
Avenue, Locator 01-3028, Cleveland, Ohio 44114, Attention: Agent Services
(facsimile: (216) 222-0012), or such other office, located in a city in the
United States Eastern Time Zone, as the Administrative Agent may designate to
the Borrower from time to time.

 

“PBGC” shall mean the Pension Benefit Guaranty Corporation established pursuant
to section 4002 of ERISA, or any successor thereto.

 

“Percentage” shall mean the General Revolving Facility Percentage or the Swing
Line Revolving Facility Percentage, as applicable.

 

“Permitted Acquisition” shall mean and include any Acquisition as to which all
of the following conditions are satisfied:

 

(i) such Acquisition involves a line or lines of business that is complementary
to the lines of business in which the Borrower and its Subsidiaries, considered
as an entirety, are engaged on the Effective Date, unless the Required Lenders
specifically approve or consent to such Acquisition in writing;

 

(ii) such Acquisition is not actively opposed by the Board of Directors (or
similar governing body) of the selling person or the person whose equity
interests are to be acquired, unless all of the Lenders specifically approve or
consent to such Acquisition in writing;

 

(iii) if as a result of an Acquisition a person becomes a Subsidiary of the
Borrower, such Subsidiary shall be a Wholly-Owned Subsidiary;

 

(iv) the aggregate consideration for such Acquisition, including the principal
amount of any assumed Indebtedness and (without duplication) any Indebtedness of
any acquired person

 

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or persons, does not exceed $10,000,000, unless the Required Lenders
specifically approve or consent to such Acquisition;

 

(v) the aggregate consideration for such Acquisition and all other Permitted
Acquisitions completed within the preceding 12 month period, including the
principal amount of any assumed Indebtedness and (without duplication) any
Indebtedness of any acquired person or persons, does not exceed $20,000,000,
unless the Required Lenders specifically approve or consent to such Acquisition;
and

 

(vi) the Borrower delivers to the Administrative Agent, at least five Business
Days prior to the proposed date of such Acquisition, an Officer’s Certificate
executed on behalf of the Borrower by an Authorized Officer of the Borrower
demonstrating compliance with the requirements above and which certifies that
the Borrower would, after giving effect to such Acquisition, be in compliance,
on a pro forma basis, with the financial covenants contained in sections 10.7,
10.8, 10.9 and 10.10 such pro forma ratios being determined:

 

(A) as if (x) such Acquisition had been completed at the beginning of the most
recent period of four consecutive fiscal quarters of the Borrower for which
financial information for the Borrower and the business or person to be
acquired, is available, and (y) any such Indebtedness, or other Indebtedness
incurred to finance such Acquisition, had been outstanding for such period; and

 

(B) without giving effect to any credit for unobtained or unrealized gains in
connection with such Acquisition, but taking into account such adjustments to
the overhead of such properties and assets as may reasonably determined and
specified by the Borrower to reflect the overhead generally applicable to
similar properties and assets owned by the Borrower and its Subsidiaries, as and
to the extent the Administrative Agent determines (acting on instructions from
the Required Lenders) such adjustments to be reasonable and appropriate under
the particular circumstances);

 

provided, that the term Permitted Acquisition specifically excludes any loans,
advances or minority investments otherwise permitted pursuant to section 10.5.

 

“Permitted Dispositions” shall mean the sale, transfer or other disposition or
other cessation of all or a portion of the operations of (i) the Borrower’s
assets located in Catlettsburg, Kentucky, (ii) the Bodenfelde plant in Lower
Saxony, Germany, or (iii) the Borrower’s assets located in Neville Island,
Pennsylvania.

 

“Permitted Liens” shall mean Liens described in section 10.3.

 

“person” shall mean any individual, partnership, joint venture, firm,
corporation, limited liability company, association, trust or other enterprise
or any government or political subdivision or any agency, department or
instrumentality thereof.

 

“Plan” shall mean any multiemployer or single-employer plan as defined in
section 4001 of ERISA, that is maintained or contributed to by (or to which
there is an obligation to contribute by) the Borrower or a Subsidiary of the
Borrower or an ERISA Affiliate, and each such plan for the five year period
immediately following the latest date on which the Borrower, or a Subsidiary of
the Borrower or an ERISA Affiliate maintained, contributed to or had an
obligation to contribute to such plan.

 

“primary Indebtedness” shall have the meaning provided in the definition of
Guaranty Obligations.

 

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“primary obligor” shall have the meaning provided in the definition of Guaranty
Obligations.

 

“Prime Rate” shall mean, for any period, a fluctuating interest rate per annum
as shall be in effect from time to time, which rate per annum shall at all times
be equal to the greater of: (i) the rate of interest established by the
Administrative Agent at its principal office, from time to time, as its prime
rate, whether or not publicly announced, which interest rate may or may not be
the lowest rate charged by it for commercial loans or other extensions of
credit; and (ii) the Federal Funds Effective Rate in effect from time to time
plus 1/2 of 1% per annum.

 

“Prime Rate Loan” shall mean each Loan, denominated in U.S. dollars, bearing
interest at the rate provided in section 2.8(a).

 

“Prohibited Transaction” shall mean a transaction with respect to a Plan that is
prohibited under section 4975 of the Code or section 406 of ERISA and not exempt
under section 4975 of the Code or section 408 of ERISA.

 

“Purchase Agreement” shall mean the Purchase Agreement dated as of February 3,
2004 between the Company, Waterlink, Inc. and Barnebey Sutcliffe Corporation.

 

“Purchase Date “ shall have the meaning provided in section 2.5(b).

 

“Purchased Entities” shall have the meaning provided in the preliminary
statements.

 

“RCRA” shall mean the Resource Conservation and Recovery Act, as the same may be
amended from time to time, 42 U.S.C. § 6901 et seq.

 

“Real Property” of any person shall mean all of the right, title and interest of
such person in and to land, improvements and fixtures, including Leaseholds.

 

“Redeemable Stock” shall mean with respect to any person any capital stock or
similar equity interests of such person that: (i) is by its terms subject to
mandatory redemption, in whole or in part, pursuant to a sinking fund, scheduled
redemption or similar provisions, at any time prior to the Maturity Date; or
(ii) otherwise is required to be repurchased or retired on a scheduled date or
dates, upon the occurrence of any event or circumstance, or at the option of the
holder or holders thereof, or otherwise, at any time prior to the Maturity Date,
other than any such repurchase or retirement occasioned by a “change of control”
or similar event.

 

“Redenominate ,” “Redenomination” and “ Redenominated” each refers to
redenomination of each Eurodollar Loan comprising the same Borrowing from
Dollars into an Alternative Currency or from an Alternative Currency into
Dollars or another Alternative Currency pursuant to section 2.7.

 

“Reference Banks” shall mean (i) NCB, and (ii) any other Lender or Lenders
selected as a Reference Bank by the Administrative Agent and the Required
Lenders, provided, that if any such Reference Bank is no longer a Lender, such
other Lender or Lenders as may be selected by the Administrative Agent acting on
instructions from the Required Lenders.

 

“Regulation D” shall mean Regulation D of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor to all or a
portion thereof establishing reserve requirements.

 

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“Regulation U” shall mean Regulation U of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor to all or a
portion thereof establishing margin requirements.

 

“Related Transaction Documents” shall mean the Purchase Agreement and all
agreements, documents and instruments executed or delivered in connection
therewith.

 

“Related Transactions” shall mean the transactions contemplated by the Purchase
Agreement.

 

“Reportable Event” shall mean an event described in section 4043 of ERISA or the
regulations thereunder with respect to a Plan, other than those events as to
which the notice requirement is waived under subsections .22, .23, .24, .25,
.26, .27, .28, .29, .30, .31, .32, .34, .35, .62, .63, .64, .65 or .67 of PBGC
Regulation section 4043.

 

“Required Lenders” shall mean Non-Defaulting Lenders whose outstanding General
Revolving Loans and Unutilized General Revolving Commitments constitute more
than 51% of the sum of the total outstanding General Revolving Loans and
Unutilized General Revolving Commitments of Non-Defaulting Lenders (provided
that, for purposes hereof, neither the Borrower, nor any of its Affiliates,
shall be included in (i) the Lenders holding such amount of the General
Revolving Loans or having such amount of the Unutilized General Revolving
Commitments, or (ii) determining the aggregate unpaid principal amount of the
General Revolving Loans or Unutilized General Revolving Commitments).

 

“Revolving Facility Percentage” shall mean, with respect to any Lender and at
any time, its percentage of the Total General Revolving Commitment.

 

“Sale and Lease-Back Transaction” shall mean any arrangement with any person
providing for the leasing by the Borrower or any Subsidiary of the Borrower of
any property (except for temporary leases for a term, including any renewal
thereof, of not more than one year and except for leases between the Borrower
and a Subsidiary or between Subsidiaries), which property has been or is to be
sold or transferred by the Borrower or such Subsidiary to such person.

 

“S&P” shall mean Standard & Poor’s Ratings Group, a division of McGraw Hill,
Inc., and its successors.

 

“SEC” shall mean the United States Securities and Exchange Commission.

 

“SEC Regulation D” shall mean Regulation D as promulgated under the Securities
Act of 1933, as amended, as the same may be in effect from time to time.

 

“Section 6.4(b)(ii) Certificate” shall have the meaning provided in section
6.4(b)(ii).

 

“Solarchem” shall mean Solarchem Environmental Systems, Inc., a Nevada
corporation.

 

“SPC” shall have the meaning provided in section 13.4(f).

 

“Standard Permitted Liens” shall mean the following:

 

(i) Liens for taxes not yet delinquent or Liens for taxes being contested in
good faith and by appropriate proceedings for which adequate reserves (in the
good faith judgment of the management of the Borrower) have been established;

 

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(ii) Liens in respect of property or assets imposed by law that were incurred in
the ordinary course of business, such as carriers’, warehousemen’s,
materialmen’s and mechanics’ Liens and other similar Liens arising in the
ordinary course of business, that do not in the aggregate materially detract
from the value of such property or assets or materially impair the use thereof
in the operation of the business of the Borrower or any Subsidiary;

 

(iii) Liens arising from judgments, decrees or attachments in circumstances not
constituting an Event of Default under section 11.1(f);

 

(iv) Liens (other than any Lien imposed by ERISA) incurred or deposits made in
the ordinary course of business in connection with workers’ compensation,
unemployment insurance and other types of social security; and mechanic’s Liens,
carrier’s Liens, and other Liens to secure the performance of tenders, statutory
obligations, contract bids, government contracts, performance and
return-of-money bonds and other similar obligations, incurred in the ordinary
course of business (exclusive of obligations in respect of the payment for
borrowed money), whether pursuant to statutory requirements, common law or
consensual arrangements;

 

(v) Leases or subleases granted to others not interfering in any material
respect with the business of the Borrower or any of its Subsidiaries and any
interest or title of a lessor under any lease not in violation of this
Agreement;

 

(vi) easements, rights-of-way, zoning or deed restrictions, minor defects or
irregularities in title and other similar charges or encumbrances not
interfering in any material respect with the ordinary conduct of the business of
the Borrower or any of its Subsidiaries considered as an entirety; and

 

(vii) Liens arising from financing statements regarding property subject to
leases not in violation of the requirements of this Agreement, provided that
such Liens are only in respect of the property subject to, and secure only, the
respective lease (and any other lease with the same or an affiliated lessor).

 

“Stated Amount” of each Letter of Credit shall mean the maximum available to be
drawn thereunder (regardless of whether any conditions or other requirements for
drawing could then be met).

 

“Subordinated Indebtedness” shall mean any Indebtedness that has been
subordinated to the Obligations in such manner and to such extent as the
Administrative Agent (acting on instructions from the Required Lenders) may
require.

 

“Subsidiary” of any person shall mean and include: (i) any corporation more than
50% of whose stock of any class or classes having by the terms thereof ordinary
voting power to elect a majority of the directors of such corporation
(irrespective of whether or not at the time stock of any class or classes of
such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by such person directly or
indirectly through Subsidiaries; and (ii) any partnership, association, joint
venture or other entity in which such person directly or indirectly through
Subsidiaries, has more than a 50% equity interest at the time. Unless otherwise
expressly provided, all references herein to “Subsidiary” shall mean a
Subsidiary of the Borrower.

 

“Subsidiary Guarantor” shall mean any Subsidiary that is party to the Subsidiary
Guaranty and shall in any event include each Subsidiary required to join the
Subsidiary Guaranty pursuant to Section 9.13 hereof.

 

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“Subsidiary Guaranty” means any subsidiary guaranty substantially in the form of
Exhibit G, heretofore or hereafter executed and delivered in connection
herewith, as the same may be amended, restated, amended and restated,
supplemented or otherwise modified from time to time.

 

“Swing Line Lender” shall have the meaning provided in the introductory
paragraph hereof and shall include any other single Lender to whom the Swing
Line Lender has transferred its entire Swing Line Revolving Commitment and any
Swing Line Revolving Loans.

 

“Swing Line Participation Amount” shall have the meaning provided in section
2.5(b).

 

“Swing Line Revolving Commitment” shall mean, with respect to the Swing Line
Lender, the amount set forth opposite such Lender’s name in Annex I as its
“Swing Line Revolving Commitment” as the same may be reduced from time to time
pursuant to section 5.1, 5.2 and/or 11.2 or adjusted from time to time as a
result of assignments to or from the Swing Line Lender pursuant to section 13.4.

 

“Swing Line Revolving Facility” shall mean the credit facility evidenced by the
Swing Line Revolving Commitment.

 

“Swing Line Revolving Loan” shall have the meaning provided in section 2.1(b).

 

“Swing Line Revolving Note” shall have the meaning provided in section 2.6(a).

 

“Synthetic Lease” shall mean any lease (i) that is accounted for by the lessee
as an Operating Lease, and (ii) under which the lessee is intended to be the
“owner” of the leased property for Federal income tax purposes.

 

“Taxes” shall have the meaning provided in section 6.4(a).

 

“Testing Period “ shall mean for any determination, a single period consisting
of the four consecutive fiscal quarters of the Borrower then last ended (whether
or not such quarters are all within the same fiscal year), except that if a
particular provision of this Agreement indicates that a Testing Period shall be
of a different specified duration, such Testing Period shall consist of the
particular fiscal quarter or quarters of the Borrower then last ended that are
so indicated in such provision.

 

“Total Commitment” shall mean the sum of the Commitments of the Lenders.

 

“Total General Revolving Commitment” shall mean the sum of the General Revolving
Commitments of the Lenders as may be increased or decreased pursuant to section
2.1(c) or 5.

 

“Type” shall mean any type of Loan determined with respect to the interest
option applicable thereto, i.e., a Prime Rate Loan, a Eurodollar Loan or a
Eurodollar Market Index Rate Loan.

 

“UCC” shall mean the Uniform Commercial Code.

 

“Unfunded Current Liability” of any Plan shall mean the amount, if any, by which
the actuarial present value of the accumulated plan benefits under the Plan as
of the close of its most recent plan year exceeds the fair market value of the
assets allocable thereto, each determined in accordance with Statement of
Financial Accounting Standards No. 87, based upon the actuarial assumptions used
by the Plan’s actuary in the most recent annual valuation of the Plan.

 

“United States” and “U.S.” each means United States of America.

 

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“Unpaid Drawing” shall have the meaning specified in section 3.3(a).

 

“Unutilized General Revolving Commitment” for any Lender at any time shall mean
the excess of (i) such Lender’s General Revolving Commitment at such time over
(ii) the principal amount of General Revolving Loans made by such Lender and
outstanding at such time.

 

“Unutilized Swing Line Revolving Commitment” for the Swing Line Lender at any
time shall mean the excess of (i) the Swing Line Lender’s Swing Line Revolving
Commitment at such time over (ii) the aggregate principal amount of Swing Line
Revolving Loans made by the Swing Line Lender and outstanding at such time.

 

“Unutilized Total General Revolving Commitment” shall mean, at any time, the
excess of (i) the Total General Revolving Commitment at such time over (ii) the
sum of (x) the aggregate principal amount of all General Revolving Loans then
outstanding plus (y) the aggregate Letter of Credit Outstandings at such time.

 

“Wholly-Owned Subsidiary” shall mean each Subsidiary of the Borrower at least
95% of whose capital stock, equity interests and partnership interests, other
than director’s qualifying shares or similar interests, are owned directly or
indirectly by the Borrower.

 

“Written,” “written” or “in writing” shall mean any form of written
communication or a communication by means of telex, facsimile transmission,
e-mail electronic transmission, telegraph or cable.

 

1.2. Computation of Time Periods. In this Agreement in the computation of
periods of time from a specified date to a later specified date, the word “from”
means “from and including” and the words “to” and “until” each means “to but
excluding.”

 

1.3. Accounting Terms. Except as otherwise specifically provided herein, all
terms of an accounting or financial nature shall be construed in accordance with
GAAP, as in effect from time to time; provided that, if the Borrower notifies
the Administrative Agent that the Borrower requests an amendment to any
provision of section 9 or 10 hereof to eliminate the effect of any change
occurring after the Effective Date in GAAP or in the application thereof to such
provision (or if the Administrative Agent notifies the Borrower that the
Required Lenders request an amendment to any such provision hereof for such
purposes), regardless of whether any such notice is given before or after such
change in GAAP or in the application thereof, then such provision shall be
interpreted on the basis of GAAP as in effect and applied immediately before
such change shall have become effective until such notice shall have been
withdrawn or such provision amended in accordance with the requirements of this
Agreement.

 

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

 

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same meaning and effect and to refer to any and all real property, tangible and
intangible assets and properties, including cash, securities, accounts and
contract rights, and interests in any of the foregoing.

 

1.5. Currency Equivalents. For purposes of this Agreement, except as otherwise
specified herein: (i) the equivalent in Dollars of any Alternative Currency
shall be determined by using the quoted spot rate at which the Administrative
Agent offers to exchange Dollars for such Alternative Currency at its Payment
Office at 9:00 A.M. (local time at the Payment Office) two Business Days prior
to the date on which such equivalent is to be determined; (ii) the equivalent in
any Alternative Currency of any other Alternative Currency shall be determined
by using the quoted spot rate at which the Administrative Agent’s Payment Office
offers to exchange such Alternative Currency for the equivalent in Dollars of
such other Alternative Currency at such Payment Office at 9:00 A.M. (local time
at the Payment Office) two Business Days prior to the date on which such
equivalent is to be determined; and (iii) the equivalent in any Alternative
Currency of Dollars shall be determined by using the quoted spot rate at which
the Administrative Agent’s Payment Office offers to exchange such Alternative
Currency for Dollars at the Payment Office at 9:00 A.M. (local time at the
Payment Office) two Business Days prior to the date on which such equivalent is
to be determined; provided, that (A) the equivalent in Dollars of each
Eurodollar Loan made in an Alternative Currency shall be recalculated hereunder
on each date that it shall be necessary (or the Administrative Agent shall
elect) to determine the unused portion of each Lender’s Commitment, or any or
all Loan or Loans outstanding on such date; (B) the equivalent in Dollars of any
Unpaid Drawing in respect of any Letter of Credit denominated in an Alternative
Currency shall be determined at the time the drawing under such Letter of Credit
was paid or disbursed by the applicable Letter of Credit Issuer; (C) for
purposes of determining the Letter of Credit Outstandings or the Unutilized
Total Revolving Commitment as contemplated by sections 2.1(a), 3.1(b) and 6.2,
the equivalent in Dollars of the Stated Amount of any Letter of Credit
denominated in an Alternative Currency shall be calculated (x) on the date of
the issuance of the respective Letter of Credit, (y) on the first Business Day
of each calendar month thereafter and (z) in any other case where the same is
required or permitted to be calculated, on such other day as the Administrative
Agent may, in its sole discretion, consider appropriate; and (D) for purposes of
sections 4.2 and 4.3 the equivalent in Dollars of the Stated Amount of any
Letter of Credit denominated in an Alternative Currency shall be calculated on
the first day of each calendar month in the quarterly period in which the
respective payment is due pursuant to said sections.

 

SECTION 2. AMOUNT AND TERMS OF LOANS.

 

2.1. Commitments for Loans. Subject to and upon the terms and conditions herein
set forth, each Lender severally agrees to make a loan or loans (each a “Loan”
and, collectively, the “Loans”) to the Borrower, which Loans shall be drawn, to
the extent such Lender has a Commitment under a Facility for the Borrower, under
the applicable Facility, as set forth below:

 

(a) General Revolving Facility. Loans to the Borrower under the General
Revolving Facility (each a “General Revolving Loan” and, collectively, the
“General Revolving Loans”): (i) may be made at any time and from time to time on
and after the Closing Date and prior to the Maturity Date; (ii) shall be made
only in U.S. dollars or an Alternative Currency; (iii) except as otherwise
provided, may, at the option of the Borrower, be incurred and maintained as, or
Converted or Redenominated into, General Revolving Loans that are either Prime
Rate Loans or Eurodollar Loans, in each case denominated in Dollars or an
Alternative Currency, provided that all General Revolving Loans made as part of
the same Borrowing shall, unless otherwise specifically provided herein, consist
of General Revolving Loans of the same Type and currency, and provided, further,
that the aggregate principal amount of Loans denominated in Alternative Currency
shall not exceed $20,000,000 at any time outstanding (the “Alternative Currency
Sublimit”); (iv) may be repaid or prepaid and reborrowed in accordance with the
provisions hereof; (v) may only be made if after giving effect thereto the
Unutilized Total General

 

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Revolving Commitment exceeds the outstanding Swing Line Revolving Loans; and
(vi) shall not exceed for any Lender at any time outstanding the General
Revolving Commitment of such Lender at such time.

 

(b) Swing Line Revolving Facility. Loans to the Borrower under the Swing Line
Revolving Facility (each a “Swing Line Revolving Loan” and, collectively, the
“Swing Line Revolving Loans”): (i) shall be made only by the Swing Line Lender;
(ii) may be made at any time and from time to time on and after the Closing Date
and prior to the Maturity Date; (iii) shall be made only in U.S. dollars; (iv)
may be incurred as a Prime Rate or a Eurodollar Market Index Rate Loan; (v) may
be repaid or prepaid and reborrowed in accordance with the provisions hereof;
(vi) may only be made if after giving effect thereto the Unutilized Total
General Revolving Commitment exceeds the outstanding Swing Line Revolving Loans;
and (vii) shall not exceed for the Swing Line Lender at any time outstanding its
Swing Line Revolving Commitment at such time.

 

2.2. Minimum Borrowing Amounts, etc.; Pro Rata Borrowings. (a) The aggregate
principal amount of each Borrowing by the Borrower shall not be less than the
Minimum Borrowing Amount. More than one Borrowing may be incurred by the
Borrower on any day, provided that: (i) if there are two or more Borrowings on a
single day under the General Revolving Facility that consist of Eurodollar
Loans, each such Borrowing shall have a different initial Interest Period; (ii)
only one Borrowing under the Swing Line Revolving Facility may be made on any
single day; and (iii) at no time shall there be more than an aggregate of 8
Borrowings under the General Revolving Facility and the Swing Line Revolving
Facility.

 

(b) All Borrowings under a Facility shall be made by the Lenders having
Commitments under such Facility pro rata on the basis of their respective
Commitments under such Facility. It is understood that no Lender shall be
responsible for any default by any other Lender in its obligation to make Loans
hereunder and that each Lender shall be obligated to make the Loans provided to
be made by it hereunder, regardless of the failure of any other Lender to
fulfill its Commitment hereunder.

 

2.3. Procedures for Borrowing. (a) Notice of Borrowing. Whenever the Borrower
desires to incur Loans, it shall give the Administrative Agent at its Notice
Office:

 

(A) Borrowings of Prime Rate Loans under the General Revolving Facility: in the
case of any Borrowing under the General Revolving Facility of Prime Rate Loans
to be made hereunder, prior to 12:00 noon (local time at its Notice Office), at
least one Business Day’s prior written or telephonic notice thereof (in the case
of telephonic notice, promptly confirmed in writing); or

 

(B) Borrowings of Eurodollar Loans under the General Revolving Facility
Denominated in Dollars: in the case of any Borrowing under the General Revolving
Facility of Eurodollar Loans denominated in Dollars to be made hereunder, prior
to 12:00 noon (local time at its Notice Office), at least three Business Days’
prior written or telephonic notice thereof (in the case of telephonic notice,
promptly confirmed in writing); or

 

(C) Borrowings of Eurodollar Loans under the General Revolving Facility
Denominated in an Alternative Currency: in the case of any Borrowing under the
General Revolving Facility of Eurodollar Loans denominated in an Alternative
Currency to be made hereunder, prior to 12:00 noon (local time at its Notice
Office), at least five Business Days’ prior written or telephonic notice thereof
(in the case of telephonic notice, promptly confirmed in writing); or

 

(D) Borrowings under the Swing Line Revolving Facility: in the case of any
Borrowing under the Swing Line Revolving Facility of a Prime Rate Loan or a
Eurodollar Market

 

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Index Rate Loan, prior to 1:00 P.M. (local time at its Notice Office), on the
proposed date of Borrowing, written or telephonic notice thereof (in the case of
telephonic notice, promptly confirmed in writing if so requested by the
Administrative Agent).

 

Each such notice (each such notice, a “Notice of Borrowing”) shall (in the case
of Swing Line Revolving Loans, if requested by the Administrative Agent to be
confirmed in writing), be substantially in the form of Exhibit B-1, and in any
event shall be irrevocable and shall specify: (i) the Facility under which the
Borrowing is to be incurred; (ii) the aggregate principal amount of the Loans to
be made pursuant to such Borrowing; (iii) the date of the Borrowing (which shall
be a Business Day); (iv) whether the Borrowing shall consist of Prime Rate
Loans, Eurodollar Loans or Eurodollar Market Index Rate Loans; and (v) if the
requested Borrowing consists of Eurodollar Loans, (A) the currency, if other
than Dollars, in which such Loans are requested and (B) the Interest Period to
be initially applicable thereto. If the Borrower fails to specify in a Notice of
Borrowing the Interest Period and currency for any Eurodollar Loans, such
Interest Period shall be deemed to be one month and such currency Dollars. The
Administrative Agent shall promptly give each Lender that has a Commitment under
any applicable Facility written notice (or telephonic notice promptly confirmed
in writing) of each proposed Borrowing under the applicable Facility, of such
Lender’s proportionate share thereof and of the other matters covered by the
Notice of Borrowing relating thereto.

 

(b) Borrowings of Eurodollar Loans Denominated in an Alternative Currency. In
the case of a proposed Borrowing comprised of Loans that are Eurodollar Loans
denominated in an Alternative Currency, the obligation of each affected Lender
to make its Eurodollar Loan in the requested Alternative Currency as part of
such Borrowing is subject to:

 

(A) if such requested Alternative Currency is an Alternative Currency described
in clause (i) of the definition of the term Alternative Currency, the
confirmation by the Administrative Agent to the Borrower not later than the
fourth Business Day before the requested date of such Borrowing that such
Alternative Currency is readily and freely transferable and convertible into
Dollars, or

 

(B) if such requested Alternative Currency is not an Alternative Currency
described in clause (i) of the definition of the term Alternative Currency, the
confirmation by such Lender to the Administrative Agent not later than the
fourth Business Day before the requested date of such Borrowing that such
Alternative Currency is acceptable to such Lender, which confirmation shall be
notified immediately by the Administrative Agent to the Borrower.

 

If the Administrative Agent shall not have provided the confirmation referred to
in clause (A) above, or any affected Lender shall not have so provided to the
Administrative Agent the confirmation referred to in clause (B) above, the
Administrative Agent shall promptly notify the Borrower and each affected Lender
that a Lender has not provided any such confirmation referred to in such clause
(B), whereupon the Borrower may, by notice to the Administrative Agent not later
than the third Business Day before the requested date of such Borrowing,
withdraw the Notice of Borrowing relating to such requested Borrowing. If the
Borrower does so withdraw such Notice of Borrowing, the Borrowing requested in
such Notice of Borrowing shall not occur and the Administrative Agent shall
promptly so notify each affected Lender. If the Borrower does not so withdraw
such Notice of Borrowing, the Administrative Agent shall promptly so notify each
affected Lender and such Notice of Borrowing shall be deemed to be a Notice of
Borrowing that requests a Borrowing of Loans comprised of Eurodollar Loans in an
aggregate amount in Dollars equivalent, on the date the Administrative Agent so
notifies each affected Lender, to the amount of the originally requested
Borrowing in an Alternative Currency; and in such notice by the Administrative
Agent to each affected Lender the Administrative Agent shall state such
aggregate equivalent amount of such Borrowing in Dollars and such Lender’s
ratable portion of such Borrowing.

 

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(c) Actions by Administrative Agent on Telephonic Notice. Without in any way
limiting the obligation of the Borrower to confirm in writing any telephonic
notice permitted to be given hereunder, the Administrative Agent may act prior
to receipt of written confirmation without liability upon the basis of such
telephonic notice believed by the Administrative Agent in good faith to be from
an Authorized Officer of the Borrower entitled to give telephonic notices under
this Agreement on behalf of the Borrower. In each such case, the Administrative
Agent’s record of the terms of such telephonic notice shall be conclusive absent
manifest error.

 

2.4. Disbursement of Funds. (a) No later than 2:00 P.M. (local time at the
Payment Office) on the date specified in each Notice of Borrowing, each Lender
with a Commitment under the Facility under which any Borrowing pursuant to such
Notice of Borrowing is to be made will make available its pro rata share, if
any, of each Borrowing under such Facility requested to be made on such date in
the manner provided below. All amounts shall be made available to the
Administrative Agent in U.S. dollars or the applicable Alternative Currency and
immediately available funds at the Payment Office and the Administrative Agent
promptly will make available to the Borrower by depositing to its account at the
Payment Office the aggregate of the amounts so made available in the type of
funds received. Unless the Administrative Agent shall have been notified by any
Lender prior to the date of Borrowing that such Lender does not intend to make
available to the Administrative Agent its portion of the Borrowing or Borrowings
to be made on such date, the Administrative Agent may assume that such Lender
has made such amount available to the Administrative Agent on such date of
Borrowing, and the Administrative Agent, in reliance upon such assumption, may
(in its sole discretion and without any obligation to do so) make available to
the Borrower a corresponding amount. If such corresponding amount is not in fact
made available to the Administrative Agent by such Lender and the Administrative
Agent has made available same to the Borrower, the Administrative Agent shall be
entitled to recover such corresponding amount from such Lender. If such Lender
does not pay such corresponding amount forthwith upon the Administrative Agent’s
demand therefor, the Administrative Agent shall promptly notify the Borrower,
and the Borrower shall immediately pay such corresponding amount to the
Administrative Agent. The Administrative Agent shall also be entitled to recover
from such Lender or the Borrower, as the case may be, interest on such
corresponding amount in respect of each day from the date such corresponding
amount was made available by the Administrative Agent to the Borrower to the
date such corresponding amount is recovered by the Administrative Agent, at a
rate per annum equal to (x) if paid by such Lender, the overnight Federal Funds
Effective Rate, in the case of any Loan denominated in Dollars, or at the
weighted average overnight or weekend borrowing rate for immediately available
and freely transferable funds in the applicable Alternative Currency that is
offered to the Administrative Agent in the international markets, in the case of
any Loan denominated in an Alternative Currency, or (y) if paid by the Borrower,
the then applicable rate of interest, calculated in accordance with section 2.8,
for the respective Loans (but without any requirement to pay any amounts in
respect thereof pursuant to section 2.11).

 

(b) Nothing herein and no subsequent termination of the Commitments pursuant to
section 5.1 or 5.2 shall be deemed to relieve any Lender from its obligation to
fulfill its commitments hereunder and in existence from time to time or to
prejudice any rights that the Borrower may have against any Lender as a result
of any default by such Lender hereunder.

 

2.5. Refunding of, or Participation in, Swing Line Revolving Loans. (a) If any
Event of Default exists, the Swing Line Lender may, in its sole and absolute
discretion, direct that the Swing Line Revolving Loans owing to it be refunded
by delivering a notice to such effect to the Administrative Agent, specifying
the aggregate principal amount thereof (a “Notice of Swing Line Refunding”).
Promptly upon receipt of a Notice of Swing Line Refunding, the Administrative
Agent shall give notice of the contents thereof to the Lenders with General
Revolving Commitments and, unless an Event of Default specified in section
11.1(g) in respect of the Borrower has occurred, also to the Borrower. Each

 

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such Notice of Swing Line Refunding shall be deemed to constitute delivery by
the Borrower of a Notice of Borrowing requesting General Revolving Loans
consisting of Prime Rate Loans in the amount of the Swing Line Revolving Loans
to which it relates. Each Lender with a General Revolving Commitment (including
the Swing Line Lender, in its capacity as a Lender) hereby unconditionally
agrees (notwithstanding that any of the conditions specified in section 7.2
hereof or elsewhere in this Agreement shall not have been satisfied, but subject
to the provisions of paragraph (b) below) to make a General Revolving Loan to
the Borrower in an amount equal to such Lender’s General Revolving Facility
Percentage of the aggregate amount of the Swing Line Revolving Loans to which
such Notice of Swing Line Refunding relates. Each such Lender shall make the
amount of such General Revolving Loan available to the Administrative Agent in
immediately available funds at the Payment Office not later than 2:00 P.M.
(local time at the Payment Office), if such notice is received by such Lender
prior to 11:00 A.M. (local time at its Domestic Lending Office), or not later
than 2:00 P.M. (local time at the Payment Office) on the next Business Day, if
such notice is received by such Lender after such time. The proceeds of such
General Revolving Loans shall be made immediately available to the Swing Line
Lender and applied by it to repay the principal amount of the Swing Line
Revolving Loans to which such Notice of Swing Line Refunding related. The
Borrower irrevocably and unconditionally agrees that, notwithstanding anything
to the contrary contained in this Agreement, General Revolving Loans made as
herein provided in response to a Notice of Swing Line Refunding shall constitute
General Revolving Loans hereunder consisting of Prime Rate Loans.

 

(b) If prior to the time a General Revolving Loan would otherwise have been made
as provided above as a consequence of a Notice of Swing Line Refunding, any of
the events specified in section 11.1(g) shall have occurred in respect of the
Borrower or one or more of the Lenders with General Revolving Commitments shall
determine that it is legally prohibited from making a General Revolving Loan
under such circumstances, each Lender (other than the Swing Line Lender), or
each Lender (other than the Swing Line Lender) so prohibited, as the case may
be, shall, on the date such General Revolving Loan would have been made by it
(the “Purchase Date”), purchase an undivided participating interest in the
outstanding Swing Line Revolving Loans to which such Notice of Swing Line
Refunding related, in an amount (the “Swing Line Participation Amount”) equal to
such Lender’s General Revolving Facility Percentage of such Swing Line Revolving
Loans. On the Purchase Date, each such Lender or each such Lender so prohibited,
as the case may be, shall pay to the Swing Line Lender, in immediately available
funds, such Lender’s Swing Line Participation Amount, and promptly upon receipt
thereof the Swing Line Lender shall, if requested by such other Lender, deliver
to such Lender a participation certificate, dated the date of the Swing Line
Lender’s receipt of the funds from, and evidencing such Lender’s participating
interest in such Swing Line Revolving Loans and its Swing Line Participation
Amount in respect thereof. If any amount required to be paid by a Lender to the
Swing Line Lender pursuant to the above provisions in respect of any Swing Line
Participation Amount is not paid on the date such payment is due, such Lender
shall pay to the Swing Line Lender on demand interest on the amount not so paid
at the overnight Federal Funds Effective Rate from the due date until such
amount is paid in full.

 

(c) Whenever, at any time after the Swing Line Lender has received from any
other Lender such Lender’s Swing Line Participation Amount, the Swing Line
Lender receives any payment from or on behalf of the Borrower on account of the
related Swing Line Revolving Loans, the Swing Line Lender will promptly
distribute to such Lender its General Revolving Facility Percentage of such
payment on account of its Swing Line Participation Amount (appropriately
adjusted, in the case of interest payments, to reflect the period of time during
which such Lender’s participating interest was outstanding and funded);
provided, however, that in the event such payment received by the Swing Line
Lender is required to be returned, such Lender will return to the Swing Line
Lender any portion thereof previously distributed to it by the Swing Line
Lender.

 

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(d) Each Lender’s obligation to make General Revolving Loans and/or to purchase
participations in connection with a Notice of Swing Line Refunding (that shall
in all events be within such Lender’s Unutilized General Revolving Commitment,
taking into account all outstanding participations in connection with Swing Line
Refundings) shall be subject to the conditions that:

 

(i) such Lender shall have received a Notice of Swing Line Refunding complying
with the provisions hereof, and

 

(ii) at the time the Swing Line Revolving Loans that are the subject of such
Notice of Swing Line Refunding were made, the Swing Line Lender had no actual
written notice from another Lender that an Event of Default had occurred and was
continuing,

 

but otherwise shall be absolute and unconditional, shall be solely for the
benefit of the Swing Line Lender, and shall not be affected by any circumstance,
including, without limitation: (A) any set-off, counterclaim, recoupment,
defense or other right that such Lender may have against any other Lender, the
Borrower, or any other person, may have against any Lender or other person, as
the case may be, for any reason whatsoever; (B) the occurrence or continuance of
a Default or Event of Default; (C) any event or circumstance involving a
Material Adverse Effect upon the Borrower; (D) any breach of any Credit Document
by any party thereto; or (E) any other circumstance, happening or event, whether
or not similar to any of the foregoing.

 

2.6. Notes and Loan Accounts. (a) Forms of Notes. The Borrower’s obligation to
pay the principal of, and interest on, the Loans made to it by each Lender shall
be evidenced: (i) if General Revolving Loans, by a promissory note substantially
in the form of Exhibit A-1 with blanks appropriately completed in conformity
herewith (each a “General Revolving Note” and, collectively, the “General
Revolving Notes”); and (ii) if Swing Line Revolving Loans, by a promissory note
substantially in the form of Exhibit A-2 with blanks appropriately completed in
conformity herewith (the “Swing Line Revolving Note”).

 

(b) General Revolving Notes. The General Revolving Note issued to a Lender with
a General Revolving Commitment shall: (i) be executed by the Borrower; (ii) be
payable to the order of such Lender and be dated on or prior to the date the
first Loan evidenced thereby is made; (iii) be in a stated principal amount
equal to the General Revolving Commitment of such Lender and be payable in the
principal amount of General Revolving Loans evidenced thereby; (iv) mature on
the Maturity Date; (v) bear interest as provided in section 2.8 in respect of
the Prime Rate Loans and Eurodollar Loans, as the case may be, evidenced
thereby; (vi) be subject to mandatory prepayment as provided in section 6.2; and
(vii) be entitled to the benefits of this Agreement and the other Credit
Documents.

 

(c) Swing Line Revolving Note. The Swing Line Revolving Note issued to the Swing
Line Lender shall: (i) be executed by the Borrower; (ii) be payable to the order
of such Lender and be dated on or prior to the date the first Loan evidenced
thereby is made; (iii) be in a stated principal amount equal to the Swing Line
Revolving Commitment of such Lender and be payable in the principal amount of
Swing Line Revolving Loans evidenced thereby; (iv) mature as to any Swing Line
Revolving Loan no later than the Maturity Date; (v) bear interest as provided in
section 2.8 in respect of Prime Rate Loans or Eurodollar Market Index Rate
Loans, as the case may be; (vi) be subject to mandatory prepayment as provided
in section 6.2; and (vii) be entitled to the benefits of this Agreement and the
other Credit Documents.

 

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

 

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(e) Loan Accounts of Administrative Agent. The Administrative Agent shall
maintain accounts in which it shall record: (i) the amount of each Loan made
hereunder, the Type thereof, the particular Facility under which such Loan was
made, and the Interest Period or maturity date and applicable interest rate if
such Loan is a Eurodollar Loan; (ii) the amount of any principal due and payable
or to become due and payable from the Borrower to each Lender hereunder; and
(iii) the amount of any sum received by the Administrative Agent hereunder for
the account of the Lenders and each Lender’s share thereof.

 

(f) Effect of Loan Accounts, etc. The entries made in the accounts maintained
pursuant to section 2.6(d) and (e) shall be prima facie evidence of the
existence and amounts and amounts of the obligations recorded therein; provided,
that the failure of any Lender or the Administrative Agent to maintain such
accounts or any error therein shall not in any manner affect the obligation of
the Borrower to repay or prepay the Loans in accordance with the terms of this
Agreement.

 

(g) Endorsements of Amounts on Notes Prior to Transfer. Each Lender will, prior
to any transfer of any of the Notes issued to it by the Borrower, endorse on the
reverse side thereof or the grid attached thereto the outstanding principal
amount of Loans evidenced thereby. Failure to make any such notation or any
error in any such notation shall not affect the Borrower’s obligations in
respect of such Loans.

 

2.7. Voluntary Conversions of Dollar Denominated Loans; Redenomination of Loans.
(a) The Borrower shall have the option to Convert on any Business Day all or a
portion at least equal to the applicable Minimum Borrowing Amount of the
outstanding principal amount of its General Revolving Loans denominated in
Dollars of one Type owing by it into a Borrowing or Borrowings pursuant to the
General Revolving Facility of another Type of Loans denominated in Dollars that
can be made pursuant to such Facility, provided that:

 

(i) no Conversion may be made with respect to any Swing Line Revolving Loans;

 

(ii) no partial Conversion of a Borrowing of Eurodollar Loans shall reduce the
outstanding principal amount of the Eurodollar Loans made pursuant to such
Borrowing to less than the Minimum Borrowing Amount applicable thereto;

 

(iii) any Conversion of Eurodollar Loans into Prime Rate Loans shall be made on,
and only on, the last day of an Interest Period for such Eurodollar Loans;

 

(iv) Prime Rate Loans may only be Converted into Eurodollar Loans if no Default
under section 11.1(a) or Event of Default is in existence on the date of the
Conversion unless the Required Lenders otherwise agree;

 

(v) Prime Rate Loans may not be Converted into Eurodollar Loans during any
period when such Conversion is not permitted under section 2.10; and

 

(vi) Borrowings of Eurodollar Loans resulting from this section 2.7 shall
conform to the requirements of section 2.2(a).

 

Each such Conversion shall be effected by the Borrower giving the Administrative
Agent at its Notice Office, prior to 12:00 noon (local time at such Notice
Office), at least three Business Days’, in the case of Conversion into a
Eurodollar Loans (or prior to 12:00 noon (local time at such Notice Office) same
Business Day’s, in the case of a Conversion into Prime Rate Loans), prior
written notice (or telephonic notice promptly confirmed in writing if so
requested by the Administrative Agent) (each a “Notice of Conversion”),
substantially in the form of Exhibit B-2, specifying the Loans to be so
Converted, the Type

 

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of Loans to be Converted into and, if to be Converted into a Borrowing of
Eurodollar Loans, the Interest Period to be initially applicable thereto. The
Administrative Agent shall give each Lender prompt notice of any such proposed
Conversion affecting any of its Loans. For the avoidance of doubt, the
prepayment or repayment of any General Revolving Loans out of the proceeds of
other General Revolving Loans by the Borrower is not considered a Conversion of
General Revolving Loans into other General Revolving Loans.

 

(b) The Borrower may, upon notice given to the Administrative Agent at least
five Business Days prior to the date of the proposed Redenomination, request
that all Loans comprising the same Borrowing, or a portion of such Loans at
least equal to the applicable Minimum Borrowing Amount, by the Borrower be
Redenominated from Dollars into an Alternative Currency or from an Alternative
Currency into Dollars or another Alternative Currency; provided, however, that
after giving effect to such Redenomination, there shall be no more than an
aggregate of 8 Borrowings under the General Revolving Facility and the Swingline
Facility; and provided, further, that any Redenomination of Eurodollar Loans
shall be made on, and only on, the last day of an Interest Period for such
Loans; and provided, still further, that no Redenomination shall be made that
would cause any Prime Rate Loans to be denominated in any currency other than
Dollars. Each such notice of request of a Redenomination (a “Notice of
Redenomination”) shall be by telecopier, telex or cable (confirmed immediately
in writing if so requested by the Administrative Agent), in substantially the
form of Exhibit B-3 hereto, specifying: (i) the Loans comprising the Borrowing
to be Redenominated; (ii) the date of the proposed Redenomination (which shall
be a Business Day); (iii) the currency into which such Loans are to be
Redenominated; and (iv) if such Loans as so Redenominated are to be Eurodollar
Loans, the duration of the Interest Period for such Loans upon being so
Redenominated. The Administrative Agent shall promptly notify each affected
Lender of any such requested Redenomination. In the case of a Notice of
Redenomination that requests a Redenomination of Loans into an Alternative
Currency not described in clause (i) of the definition of the term Alternative
Currency, such Redenomination is subject to the confirmation by each Lender to
the Administrative Agent, not later than the third Business Day before the
requested date of such Redenomination that such Lender agrees to such
Redenomination, and the Administrative Agent shall promptly notify the Borrower
of such confirmation. If any affected Lender shall not have so provided to the
Administrative Agent such confirmation, the requested Redenomination will not
occur, and the Administrative Agent shall promptly notify the Borrower and each
affected Lender that a Lender has not provided such confirmation and that the
requested Redenomination will not occur. If each affected Lender shall have so
provided to the Administrative Agent such confirmation or if such Notice of
Redenomination requests a Redenomination of Loans into Dollars, each Loan so
requested to be Redenominated will be Redenominated, on the date specified
therefor in such Notice of Redenomination, into an equivalent amount thereof in
the currency requested in such Notice of Redenomination, such equivalent amount
to be determined on such date by the Administrative Agent in accordance with
section 1.5, and in the case of any such Loan being so Redenominated that will
be a Eurodollar Loan, such Eurodollar Loan will have an initial Interest Period
as requested in such Notice of Redenomination.

 

2.8. Interest. (a) Interest Rate for Prime Rate Loans. During such periods as a
General Revolving Loan or a Swing Line Revolving Loan is a Prime Rate Loan, the
unpaid principal amount thereof shall bear interest at a fluctuating rate per
annum that shall at all times be equal to the Prime Rate in effect from time to
time plus the Applicable Prime Rate Margin (as defined below) in effect from
time to time.

 

(b) Interest Rate for Eurodollar Loans. During such periods as a General
Revolving Loan is a Eurodollar Loan, the unpaid principal amount thereof shall
bear interest at a rate per annum that shall at all times during any Interest
Period applicable thereto be the Applicable Eurodollar Margin (as defined below)
for such Eurodollar Loan plus the relevant Eurodollar Rate for such Interest
Period.

 

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(c) Interest Rate for Eurodollar Market Index Rate Loans. During such periods as
a Swing Line Revolving Loan is a Eurodollar Market Index Rate Loan, the unpaid
principal amount thereof shall bear interest at a fluctuating rate that shall at
all times be equal to the Applicable Eurodollar Rate Margin (as defined below)
plus the Eurodollar Market Index Rate plus 50 basis points.

 

(d) Default Interest. Notwithstanding the above provisions, if an Event of
Default is in existence, all outstanding amounts of principal and, to the extent
permitted by law, all overdue interest, in respect of each Loan shall bear
interest, payable on demand, at a fluctuating rate per annum equal to 2% per
annum above the interest rate that would be applicable under section 2.8(a) to
Prime Rate Loans in effect from time to time. If any amount (other than the
principal of and interest on the Loans) payable by the Borrower under the Credit
Documents is not paid when due, all amounts outstanding shall bear interest,
payable on demand, at a fluctuating rate per annum equal 2% per annum above the
interest rate that would be applicable under section 2.8(a) to Prime Rate Loans
in effect from time to time.

 

(e) Accrual and Payment of Interest. Interest shall accrue from and including
the date of any Borrowing to but excluding the date of any prepayment or
repayment thereof and shall be payable:

 

(i) in the case of any Swing Line Revolving Loan, (A) at the maturity date
thereof, (B) on the last Business Day of each month, (C) on any prepayment (on
the amount prepaid), and (D) after maturity (whether by acceleration or
otherwise), on demand; and

 

(ii) in the case of any General Revolving Loan, (A) that is a Prime Rate Loan,
monthly in arrears on the last Business Day of each calendar month, (B) that is
a Eurodollar Loan, on the last day of each Interest Period applicable thereto
and, in the case of an Interest Period in excess of three months, on the dates
that are successively three months after the commencement of such Interest
Period, and (C) on any repayment, prepayment or Conversion (on the amount
repaid, prepaid or Converted), at maturity (whether by acceleration or
otherwise) and, after such maturity, on demand.

 

(f) Computations of Interest. All computations of interest hereunder shall be
made in accordance with section 13.7(b).

 

(g) Information as to Interest Rates. The Administrative Agent upon determining
the interest rate for any Borrowing shall promptly notify the Borrower and the
affected Lenders thereof. If the Administrative Agent is unable to determine the
Eurodollar Rate for any Borrowing of Eurodollar Loans or the Eurodollar Market
Index Rate for any Borrowing of Eurodollar Market Index Rate Loans by reference
to the Telerate screen or other information provided by a service organization
referred to in clause (i) of the definition of the term Eurodollar Rate, then
each Reference Bank agrees to furnish the Administrative Agent timely
information for the purpose of determining the Eurodollar Rate for any such
Borrowing. If any one or more of the Reference Banks shall not timely furnish
such information, the Administrative Agent shall determine the Eurodollar Rate
on the basis of timely information furnished by the remaining Reference Banks.

 

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(h) Interest Margins. As used herein, the term “Applicable Prime Rate Margin,”
as applied to any Loan that is a Prime Rate Loan, and the term “Applicable
Eurodollar Margin,” as applied to any Loan that is a Eurodollar Loan, means the
particular rate per annum determined by the Administrative Agent in accordance
with the Pricing Grid Table that appears below, based on the Borrower’s ratio of
Consolidated Total Debt to Consolidated EBITDA and such Pricing Grid Table, and
the following provisions:

 

(i) Initially, until changed hereunder in accordance with the following
provisions, the Applicable Prime Rate Margin will be zero basis points per annum
and the Applicable Eurodollar Margin for General Revolving Loans will be 152.50
basis points per annum.

 

(ii) Upon receipt of the covenant compliance report for the fiscal quarter of
the Borrower ended on or nearest to March 31, 2004, and continuing with each
fiscal quarter thereafter, the Administrative Agent will determine the
Applicable Prime Rate Margin for any Prime Rate Loan and the Applicable
Eurodollar Margin for any Eurodollar Loan or Eurodollar Market Index Rate Loan
in accordance with the Pricing Grid Table, based on the Borrower’s ratio of (x)
Consolidated Total Debt as of the end of the fiscal quarter, to (y) Consolidated
EBITDA for the Testing Period ended on the last day of the fiscal quarter, and
identified in such Pricing Grid Table. Changes in the Applicable Prime Rate
Margin and the Applicable Eurodollar Margin based upon changes in such ratio
shall become effective on the first day of the month following the receipt by
the Administrative Agent pursuant to section 9.1(a) or (b) of the financial
statements of the Borrower, accompanied by the certificate and calculations
referred to in section 9.1(c), demonstrating the computation of such ratio,
based upon the ratio in effect at the end of the applicable period covered (in
whole or in part) by such financial statements.

 

(iii) Notwithstanding the above provisions, during any period when (A) the
Borrower has failed to timely deliver its consolidated financial statements
referred to in section 9.1(a) or (b), accompanied by the certificate and
calculations referred to in section 9.1(c), or (B) an Event of Default has
occurred and is continuing, the Applicable Prime Rate Margin and the Applicable
Eurodollar Margin shall each be the highest rate per annum indicated therefor in
the Pricing Grid Table, regardless of the Borrower’s ratio of Consolidated Total
Debt to Consolidated EBITDA at such time.

 

(iv) Any changes in the Applicable Prime Rate Margin or the Applicable
Eurodollar Margin shall be determined by the Administrative Agent in accordance
with the above provisions and the Administrative Agent will promptly provide
notice of such determinations to the Borrower and the Lenders. Any such
determination by the Administrative Agent pursuant to this section 2.8(h) shall
be conclusive and binding absent manifest error.

 

PRICING GRID TABLE

 

(expressed in basis points)

 

Ratio of Consolidated Total Debt To Consolidated EBITDA

--------------------------------------------------------------------------------

   Applicable Eurodollar
Margin

--------------------------------------------------------------------------------

   Applicable Prime Rate
Margin

--------------------------------------------------------------------------------

   Applicable
Facility Fee Rate

--------------------------------------------------------------------------------

> 3.00 to 1.00

   185.00    0    40.00

³ 2.50 to 1.00 and < 3.00 to 1.00

   152.50    0    35.00

³2.00 to 1.00 and < 2.50 to 1.00

   120.00    0    30.00

³1.50 to 1.00 and < 2.00 to 1.00

   100.00    0    25.00

< 1.50 to 1.00

   80.00    0    20.00

 

2.9. Selection and Continuation of Interest Periods. (a) The Borrower shall have
the right

 

(x) at the time it gives a Notice of Borrowing or Notice of Conversion in
respect of the making of, or a Conversion into, General Revolving Loans
consisting of

 

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Eurodollar Loans, to select in such Notice the Interest Period to be applicable
to such Borrowing; and

 

(y) prior to 11:00 A.M. (local time at the Notice Office) on the third Business
Day prior to the expiration of an Interest Period applicable to a Borrowing of
General Revolving Loans consisting of Eurodollar Loans, to elect by giving the
Administrative Agent written or telephonic notice (in the case of telephonic
notice, promptly confirmed in writing if so requested by the Administrative
Agent) to Continue all or the Minimum Borrowing Amount of the principal amount
of such Loans as one or more Borrowings of Eurodollar Loans and to select the
Interest Period to be applicable to any such Borrowing (any such notice, a
“Notice of Continuation”),

 

which Interest Period shall, at the option of the Borrower, be a one, two, three
or six month period; provided, that notwithstanding anything to the contrary
contained above, the Borrower’s right to select an Interest Period or to effect
any Continuation shall be subject to the applicable provisions of section 2.10
and to the following:

 

(i) the initial Interest Period for any Borrowing of Eurodollar Loans shall
commence on the date of such Borrowing (the date of a Borrowing resulting from a
Conversion or Continuation shall be the date of such Conversion or Continuation)
and each Interest Period occurring thereafter in respect of such Borrowing shall
commence on the day on which the next preceding Interest Period expires;

 

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

 

(iii) if any Interest Period would otherwise expire on a day that is not a
Business Day, such Interest Period shall expire on the next succeeding Business
Day, provided that if any Interest Period would otherwise expire on a day that
is not a Business Day but is a day of the month after which no further Business
Day occurs in such month, such Interest Period shall expire on the next
preceding Business Day;

 

(iv) no Interest Period for any Eurodollar Loan may be selected that would end
after the Maturity Date;

 

(v) each Borrowing of Eurodollar Loans resulting from any Continuation shall be
in at least the Minimum Borrowing Amount applicable thereto; and

 

(vi) no Interest Period may be elected at any time when a Default under section
11.1(a) or an Event of Default is then in existence unless the Required Lenders
otherwise agree.

 

(b) If upon the expiration of any Interest Period the Borrower has failed to (or
may not) elect a new Interest Period to be applicable to the respective
Borrowing of Eurodollar Loans as provided above, in the case of any such
Eurodollar Loans that are denominated in Dollars, the Borrower shall be deemed
to have elected to Convert such Borrowing to Prime Rate Loans effective as of
the expiration date of such current Interest Period, and in the case of any such
Eurodollar Loans that are denominated in an Alternative Currency, the Borrower
shall be deemed to have elected effective as of the expiration date of such
current Interest Period to Redenominate such Loans from the applicable
Alternative Currency into an equivalent amount thereof in Dollars, such
equivalent amount to be determined on such date by the Administrative Agent in
accordance with section 1.5, and to treat such Loans as so Redenominated as
Prime Rate Loans.

 

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2.10. Increased Costs, Illegality, etc. (a) In the event that (x) in the case of
clause (i) below, the Administrative Agent or (y) in the case of clauses (ii)
and (iii) below, any Lender, shall have determined on a reasonable basis (which
determination shall, absent manifest error, be final and conclusive and binding
upon all parties hereto):

 

(i) on any date for determining the Eurodollar Rate for Eurodollar Loans
denominated in Dollars or in an Alternative Currency for any Interest Period, or
for Eurodollar Market Index Rate Loans, as applicable, that, by reason of any
changes arising after the Effective Date affecting the interbank Eurodollar
market, adequate and fair means do not exist for ascertaining the applicable
interest rate on the basis provided for in the definition of Eurodollar Rate; or

 

(ii) at any time, that such Lender shall incur increased costs or reductions in
the amounts received or receivable hereunder in an amount that such Lender
reasonably deems material with respect to any Eurodollar Loans (other than any
increased cost or reduction in the amount received or receivable resulting from
the imposition of or a change in the rate of taxes or similar charges) because
of (x) any change since the Effective Date in any applicable law, governmental
rule, regulation, guideline, order or request (whether or not having the force
of law), or in the interpretation or administration thereof and including the
introduction of any new law or governmental rule, regulation, guideline, order
or request (such as, for example, but not limited to, a change in official
reserve requirements, but, in all events, excluding reserves includable in the
Eurodollar Rate pursuant to the definition thereof) and/or (y) other
circumstances adversely affecting the interbank Eurodollar market or the
position of such Lender in such market; or

 

(iii) at any time, that the making or continuance of any Eurodollar Loan
denominated in Dollars or in an Alternative Currency has become unlawful by
compliance by such Lender in good faith with any change since the Effective Date
in any law, governmental rule, regulation, guideline or order, or the
interpretation or application thereof, or would conflict with any thereof not
having the force of law but with which such Lender customarily complies or has
become impracticable as a result of a contingency occurring after the Effective
Date that materially adversely affects the interbank Eurodollar market;

 

then, and in any such event, such Lender (or the Administrative Agent in the
case of clause (i) above) shall (x) on or promptly following such date or time
and (y) within 10 Business Days of the date on which such event no longer exists
give notice (by telephone confirmed in writing) to the Borrower and to the
Administrative Agent of such determination (which notice the Administrative
Agent shall promptly transmit to each of the other applicable Lenders).
Thereafter (x) in the case of clause (i) above, Eurodollar Loans, or for
Eurodollar Market Index Rate Loans, as applicable, shall no longer be available
in the applicable currency until such time as the Administrative Agent notifies
the Borrower and the applicable Lenders that the circumstances giving rise to
such notice by the Administrative Agent no longer exist, and any Notice of
Borrowing, Notice of Conversion or Notice of Redenomination given by the
Borrower with respect to Eurodollar Loans denominated in Dollars or such
Alternative Currency, or for Eurodollar Market Index Rate Loans, as applicable,
that have not yet been incurred, Converted or Redenominated shall be deemed
rescinded by the Borrower or, in the case of a Notice of Borrowing, shall, at
the option of the Borrower, be deemed Converted into a Notice of Borrowing for
Prime Rate Loans to be made on the date of Borrowing contained in such Notice of
Borrowing, (y) in the case of clause (ii) above, the Borrower shall pay to such
Lender, upon written demand therefor, such additional amounts (in the form of an
increased rate of, or a different method of calculating, interest or otherwise
as such Lender shall determine) as shall be required to compensate such Lender,
for such increased costs or reductions in amounts receivable hereunder (a
written notice as to the additional amounts owed to such Lender, showing the
basis for the calculation thereof, which basis must be reasonable, submitted to
the

 

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Borrower by such Lender shall, absent manifest error, be final and conclusive
and binding upon all parties hereto) and (z) in the case of clause (iii) above,
the Borrower shall take one of the actions specified in section 2.10(b) as
promptly as possible and, in any event, within the time period required by law.

 

(b) At any time that any Eurodollar Loan denominated in Dollars or in an
Alternative Currency is affected by the circumstances described in section
2.10(a)(ii) or (iii), the Borrower may (and in the case of a Eurodollar Loan
affected pursuant to section 2.10(a)(iii) the Borrower shall) either (i) if the
affected Eurodollar Loan is then being made pursuant to a Borrowing, by giving
the Administrative Agent telephonic notice (confirmed promptly in writing)
thereof on the same date that the Borrower was notified by a Lender pursuant to
section 2.10(a)(ii) or (iii), cancel said Borrowing, convert the related Notice
of Borrowing into one requesting a Borrowing of Prime Rate Loans or require the
affected Lender to make its requested Loan as a Prime Rate Loan, or (ii) if the
affected Eurodollar Loan is then outstanding, upon at least one Business Day’s
notice to the Administrative Agent, require the affected Lender to Convert each
such Eurodollar Loan denominated in Dollars into a Prime Rate Loan or require
the affected Lender to Redenominate each such Eurodollar Loan denominated in an
Alternative Currency into a Prime Rate Loan, provided that if more than one
Lender is affected at any time, then all affected Lenders must be treated the
same pursuant to this section 2.10(b).

 

(c) If any Lender shall have determined that after the Effective Date, the
adoption of any applicable law, rule or regulation regarding capital adequacy,
or any change therein, or any change in the interpretation or administration
thereof by any governmental authority, central bank or comparable agency charged
by law with the interpretation or administration thereof, or compliance by such
Lender or its parent corporation with any request or directive regarding capital
adequacy (whether or not having the force of law) of any such authority, central
bank, or comparable agency, in each case made subsequent to the Effective Date,
has or would have the effect of reducing by an amount reasonably deemed by such
Lender to be material the rate of return on such Lender’s or its parent
corporation’s capital or assets as a consequence of such Lender’s commitments or
obligations hereunder to a level below that which such Lender or its parent
corporation could have achieved but for such adoption, effectiveness, change or
compliance (taking into consideration such Lender’s or its parent corporation’s
policies with respect to capital adequacy), then from time to time, within 15
days after demand by such Lender (with a copy to the Administrative Agent), the
Borrower shall pay to such Lender such additional amount or amounts as will
compensate such Lender or its parent corporation for such reduction. Each
Lender, upon determining in good faith that any additional amounts will be
payable pursuant to this section 2.10(c), will give prompt written notice
thereof to the Borrower, which notice shall set forth, in reasonable detail, the
basis of the calculation of such additional amounts, which basis must be
reasonable, although the failure to give any such notice shall not release or
diminish any of the Borrower’s obligations to pay additional amounts pursuant to
this section 2.10(c) upon the subsequent receipt of such notice.

 

(d) Notwithstanding anything in this Agreement to the contrary, (i) no Lender
shall be entitled to compensation or payment or reimbursement of other amounts
under section 2.10 for any amounts incurred or accruing more than 270 days prior
to the giving of notice to the Borrower of additional costs or other amounts of
the nature described in such section, and (ii) no Lender shall demand
compensation for any reduction referred to in section 2.10(c) if it shall not at
the time be the general policy or practice of such Lender to demand such
compensation, payment or reimbursement in similar circumstances under comparable
provisions of other credit agreements.

 

2.11. Breakage Compensation. The Borrower shall compensate each applicable
Lender, upon its written request (which request shall set forth the detailed
basis for requesting and the method of calculating such compensation), for all
reasonable losses, expenses and liabilities (including, without limitation, any
loss, expense or liability incurred by reason of the liquidation or reemployment
of deposits or other funds required by such Lender to fund its Eurodollar Loans)
that such Lender may sustain: (i) if for any reason (other than a default by
such Lender or the Administrative Agent), a Borrowing of

 

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Eurodollar Loans does not occur on a date specified therefor in a Notice of
Borrowing, Notice of Conversion or Notice of Redenomination (whether or not
rescinded or withdrawn by the Borrower or deemed rescinded or withdrawn pursuant
to section 2.10(a)); (ii) if any repayment, prepayment, Conversion,
Redenomination or Continuation of any of its Eurodollar Loans occurs on a date
that is not the last day of an Interest Period applicable thereto; (iii) if any
prepayment of any of its Eurodollar Loans is not made on any date specified in a
notice of prepayment given by the Borrower; (iv) if such Lender transfers its
Eurodollar Loans pursuant to a request by the Borrower under section 2.12(b)
hereof; or (v) as a consequence of (x) any other default by the Borrower to
repay its Eurodollar Loans when required by the terms of this Agreement or (y)
an election made pursuant to section 2.10(b). Such loss, cost, expense and
liability to any Lender shall be deemed to include an amount determined by such
Lender to be the excess, if any, of (i) the amount of interest that would have
accrued on the principal amount of such Loan had such event not occurred, at the
interest rate that would have been applicable to such Loan, for the period from
the date of such event to the last day of the then current Interest Period
therefor (or, in the case of a failure to effect a Borrowing, Conversion,
Redenomination or Continuation, for the period that would have been the Interest
Period for such Loan, over (ii) the amount of interest that would accrue on such
principal amount for such period at the interest rate that such Lender would bid
were it to bid, at the commencement of such period, for dollar deposits of a
comparable amount and period from other banks in the eurodollar market. A
certificate of any Lender setting forth any amount or amounts that such Lender
is entitled to receive pursuant to this section shall be delivered to the
Borrower and shall be conclusive absent manifest error. The Borrower shall pay
such Lender the amount shown as due on any such request within 10 days after
receipt thereof.

 

2.12. Change of Lending Office; Replacement of Lenders. (a) Each Lender agrees
that, upon the occurrence of any event giving rise to the operation of section
2.10(a)(ii) or (iii) or 2.10(c), with respect to such Lender, it will, if
requested by the Borrower, use reasonable efforts (subject to overall policy
considerations of such Lender) to designate another Applicable Lending Office
for any Loans or Commitment affected by such event, provided that such
designation is made on such terms that such Lender and its Applicable Lending
Office suffer no economic, legal or regulatory disadvantage, with the object of
avoiding the consequence of the event giving rise to the operation of any such
section.

 

(b) If any Lender requests any compensation, reimbursement or other payment
under section 2.10(a)(ii) or (iii) or 2.10(c) with respect to such Lender, or if
any Lender is a Defaulting Lender, then the Borrower may, at its sole expense
and effort, upon notice to such Lender and the Administrative Agent, require
such Lender to assign and delegate, without recourse (in accordance with the
restrictions contained in section 13.4(c)), all its interests, rights and
obligations under this Agreement to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (i) the Borrower shall have received the prior
written consent of the Administrative Agent, which consent shall not be
unreasonably withheld, (ii) such Lender shall have received payment of an amount
equal to the outstanding principal of its Loans, accrued interest thereon,
accrued fees and all other amounts payable to it hereunder, from the assignee
(to the extent of such outstanding principal and accrued interest and fees) or
the Borrower (in the case of all other amounts, including any breakage
compensation under section 2.11 hereof), and (iii) in the case of any such
assignment resulting from a claim for compensation, reimbursement or other
payments required to be made under section 2.10(a)(ii) or (iii) or 2.10(c) with
respect to such Lender, such assignment will result in a reduction in such
compensation, reimbursement or payments. A Lender shall not be required to make
any such assignment and delegation if, prior thereto, as a result of a waiver by
such Lender or otherwise, the circumstances entitling the Borrower to require
such assignment and delegation cease to apply.

 

(c) Nothing in this section 2.12 shall affect or postpone any of the obligations
of the Borrower or the right of any Lender provided in section 2.10.

 

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SECTION 3. LETTERS OF CREDIT.

 

3.1. Letters of Credit. (a) Subject to and upon the terms and conditions herein
set forth, the Borrower may request a Letter of Credit Issuer at any time and
from time to time on or after the Closing Date and prior to the date that is 15
Business Days prior to the Maturity Date to issue, for the account of the
Borrower or any of its Subsidiaries and in support of workers’ compensation,
liability insurance, releases of contract retention obligations, contract
performance guarantee requirements and other bonding and other obligations of
the Borrower or any such Subsidiary incurred in the ordinary course of its
business, and such other standby obligations of the Borrower and its
Subsidiaries that are acceptable to the Letter of Credit Issuer, and subject to
and upon the terms and conditions herein set forth, such Letter of Credit Issuer
agrees to issue from time to time, irrevocable standby letters of credit
denominated and payable in Dollars or in an Alternative Currency in such form as
may be approved by such Letter of Credit Issuer and the Administrative Agent
(each such letter of credit (and each Existing Letter of Credit described in
section 3.1(d)), a “Letter of Credit” and collectively, the “Letters of
Credit”).

 

(b) Notwithstanding the foregoing: (i) no Letter of Credit shall be issued the
Stated Amount of which, when added to the Letter of Credit Outstandings at such
time, would exceed either (x) $30,000,000 (“Letter of Credit Sublimit”), or (y)
when added to the aggregate principal amount of all Loans then outstanding, an
amount equal to the Total Commitment at such time; (ii) no individual Letter of
Credit (other than any Existing Letter of Credit) shall be issued that has an
initial Stated Amount less than $10,000 unless such lesser Stated Amount is
acceptable to the Letter of Credit Issuer; and (iii) each Letter of Credit shall
have an expiry date (including any renewal periods) occurring not later than the
earlier of (A) one year from the date of issuance thereof, unless a longer
period is approved by the relevant Letter of Credit Issuer and Lenders (other
than any Defaulting Lender) holding a majority of the Total Commitment, and (B)
15 Business Days prior to the Maturity Date, in each case on terms acceptable to
the Administrative Agent and the relevant Letter of Credit Issuer, provided,
however, that in the case of this subclause (B), the expiry date (including any
renewal periods) may be permitted to occur beyond the Maturity Date so long as
the Borrower shall pay to the applicable Letter of Credit Issuer an amount in
cash and/or Cash Equivalents equal to 100% of the Letter of Credit Outstandings
and such Letter of Credit Issuer shall hold such payment as security for the
reimbursement obligations of the Borrower in respect of the applicable Letter of
Credit pursuant to a cash collateral agreement to be entered into in form and
substance reasonably satisfactory to such Letter of Credit Issuer and the
Borrower (which shall permit certain investments in Cash Equivalents
satisfactory to such Letter of Credit Issuer and the Borrower until the proceeds
are applied to the secured obligations).

 

(c) Notwithstanding the foregoing, in the event a Lender Default exists, no
Letter of Credit Issuer shall be required to issue any Letter of Credit unless
either: (i) such Letter of Credit Issuer has entered into arrangements
satisfactory to it and the Borrower to eliminate such Letter of Credit Issuer’s
risk with respect to the participation in Letters of Credit of the Defaulting
Lender or Lenders, including by cash collateralizing such Defaulting Lender’s or
Lenders’ Percentage of the Letter of Credit Outstandings; or (ii) the issuance
of such Letter of Credit, taking into account the potential failure of the
Defaulting Lender or Lenders to risk participate therein, will not cause the
Letter of Credit Issuer to incur aggregate credit exposure hereunder with
respect to Loans and Letter of Credit Outstandings in excess of its Commitment,
and the Borrower has undertaken, for the benefit of such Letter of Credit
Issuer, pursuant to an instrument satisfactory in form and substance to such
Letter of Credit Issuer, not to thereafter incur Loans or Letter of Credit
Outstandings hereunder that would cause the Letter of Credit Issuer to incur
aggregate credit exposure hereunder with respect to Loans and Letter of Credit
Outstandings in excess of its Commitment.

 

(d) Annex VI hereto contains a description of all letters of credit outstanding
on, and to continue in effect after, the Closing Date. Each such letter of
credit issued by a bank that is or becomes a Lender under this Agreement (each,
an “Existing Letter of Credit”) shall constitute a “Letter of Credit”

 

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for all purposes of this Agreement, issued, for purposes of section 3.4(a), on
the Closing Date, and the Borrower, the Administrative Agent and the applicable
Lenders hereby agree that, from and after such date, the terms of this Agreement
shall apply to such Letters of Credit, superseding any other agreement
theretofore applicable to them to the extent inconsistent with the terms hereof.

 

3.2. Letter of Credit Requests; Notices of Issuance. (a) Whenever it desires
that a Letter of Credit be issued, the Borrower shall give the Administrative
Agent and the Letter of Credit Issuer written or telephonic notice (in the case
of telephonic notice, promptly confirmed in writing if so requested by the
Administrative Agent) that, if in the form of written notice shall be
substantially in the form of Exhibit B-4, or transmit by electronic
communication (if arrangements for doing so have been approved by the Letter of
Credit Issuer), prior to 11:00 A.M. (local time at its Notice Office) at least
three Business Days (or such shorter period as may be acceptable to the relevant
Letter of Credit Issuer) prior to the proposed date of issuance (which shall be
a Business Day) (each a “Letter of Credit Request”), which Letter of Credit
Request shall include such supporting documents that such Letter of Credit
Issuer customarily requires in connection therewith (including, in the case of a
Letter of Credit for an account party other than the Borrower, an application
for, and if applicable a reimbursement agreement with respect to, such Letter of
Credit). Any such documents executed in connection with the issuance of a Letter
of Credit, including the Letter of Credit itself, are herein referred to as
“Letter of Credit Documents.” In the event of any inconsistency between any of
the terms or provisions of any Letter of Credit Document and the terms and
provisions of this Agreement respecting Letters of Credit, the terms and
provisions of this Agreement shall control. The Administrative Agent shall
promptly notify each Lender of each Letter of Credit Request.

 

(b) Each Letter of Credit Issuer shall provide to the Administrative Agent and
each other Lender (i) a monthly summary describing each Letter of Credit issued
by such Letter of Credit Issuer and then outstanding and an identification for
the relevant period of the daily aggregate Letter of Credit Outstandings
represented by Letters of Credit issued by such Letter of Credit Issuer and (ii)
notice immediately upon any increase or decrease in the face amount of any
Letter of Credit or any termination or cancellation of any Letter of Credit.
Each Letter of Credit Issuer shall, if requested by the Administrative Agent or
any other Lender, provide a copy of each Letter of Credit issued by it.

 

3.3. Agreement to Repay Letter of Credit Drawings. (a) The Borrower hereby
agrees to reimburse (or cause any Subsidiary for whose account a Letter of
Credit was issued to reimburse) each Letter of Credit Issuer, by making payment
directly to such Letter of Credit Issuer in immediately available funds at the
payment office of such Letter of Credit Issuer, for any payment or disbursement
made by such Letter of Credit Issuer under any Letter of Credit (each such
amount so paid or disbursed until reimbursed, an “Unpaid Drawing”) not later
than the Business Day immediately following the Business Day on which such
Letter of Credit Issuer notifies the Borrower (or any such Subsidiary for whose
account such Letter of Credit was issued) of such payment or disbursement (which
notice to the Borrower (or such Subsidiary) shall be delivered reasonably
promptly after any such payment or disbursement), such payment to be made in
Dollars, with interest on the amount so paid or disbursed by such Letter of
Credit Issuer, to the extent not reimbursed prior to 1:00 P.M. (local time at
the payment office of the Letter of Credit Issuer) on the date of such payment
or disbursement, from and including the date paid or disbursed to but not
including the date such Letter of Credit Issuer is reimbursed therefor at a rate
per annum that shall be the rate then applicable to Loans that are Prime Rate
Loans (plus an additional 2% per annum if not reimbursed by the third Business
Day after the date of such payment or disbursement), any such interest also to
be payable on demand. If by 11:00 A.M. on the Business Day immediately following
notice to it of its obligation to make reimbursement in respect of an Unpaid
Drawing, the Borrower has not made such reimbursement out of its available cash
on hand or a contemporaneous Borrowing hereunder, (x) the Borrower will be
deemed to have given a Notice of Borrowing for Prime Rate Loans in an aggregate
principal amount sufficient to reimburse such Unpaid

 

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Drawing (and the Administrative Agent shall promptly give notice to the Lenders
of such deemed Notice of Borrowing), (y) the Lenders shall, unless they are
legally prohibited from doing so, make the Loans contemplated by such deemed
Notice of Borrowing (which Loans shall be considered made under section 2.1
hereof), and (z) the proceeds of such Prime Rate Loans shall be disbursed
directly to the applicable Letter of Credit Issuer to the extent necessary to
effect such reimbursement, with any excess proceeds to be made available to the
Borrower in accordance with the applicable provisions of this Agreement.

 

(b) The Borrower’s obligation under this section 3.3 to reimburse, or cause a
Subsidiary to reimburse, each Letter of Credit Issuer with respect to Unpaid
Drawings (including, in each case, interest thereon) shall be absolute and
unconditional under any and all circumstances and irrespective of any setoff,
counterclaim or defense to payment that the Borrower may have or have had
against such Letter of Credit Issuer, the Administrative Agent, any other Letter
of Credit Issuer or any Lender, including, without limitation, any defense based
upon the failure of any drawing under a Letter of Credit to conform to the terms
of the Letter of Credit or any non-application or misapplication by the
beneficiary of the proceeds of such drawing, provided, however that the Borrower
shall not be obligated to reimburse, or cause a Subsidiary to reimburse, a
Letter of Credit Issuer for any wrongful payment made by such Letter of Credit
Issuer under a Letter of Credit as a result of acts or omissions constituting
willful misconduct or gross negligence on the part of such Letter of Credit
Issuer.

 

3.4. Letter of Credit Participations. (a) Immediately upon the issuance by a
Letter of Credit Issuer of any Letter of Credit (and on the Closing Date with
respect to any Existing Letter of Credit), such Letter of Credit Issuer shall be
deemed to have sold and transferred to each Lender with a Commitment, and each
such Lender (each a “Participant”) shall be deemed irrevocably and
unconditionally to have purchased and received from such Letter of Credit
Issuer, without recourse or warranty, an undivided interest and participation,
to the extent of such Lender’s Percentage, in such Letter of Credit, each
substitute letter of credit, each drawing made thereunder, the obligations of
the Borrower under this Agreement with respect thereto (although Letter of
Credit Fees shall be payable directly to the Administrative Agent for the
account of the Lenders as provided in section 4.2 and the Participants shall
have no right to receive any portion of any fees of the nature contemplated by
section 4.3), the obligations of any Subsidiary of the Borrower under any Letter
of Credit Documents pertaining thereto, and any security for, or guaranty
pertaining to, any of the foregoing. Upon any change in the Commitments of the
Lenders pursuant to section 13.4(b), it is hereby agreed that, with respect to
all outstanding Letters of Credit and Unpaid Drawings, there shall be an
automatic adjustment to the participations pursuant to this section 3.4 to
reflect the new Percentages of the assigning and assignee Lender.

 

(b) In determining whether to pay under any Letter of Credit, a Letter of Credit
Issuer shall not have any obligation relative to the Participants other than to
determine that any documents required to be delivered under such Letter of
Credit have been delivered and that they appear to comply on their face with the
requirements of such Letter of Credit. Any action taken or omitted to be taken
by a Letter of Credit Issuer under or in connection with any Letter of Credit if
taken or omitted in the absence of gross negligence or willful misconduct, shall
not create for such Letter of Credit Issuer any resulting liability.

 

(c) In the event that a Letter of Credit Issuer makes any payment under any
Letter of Credit and the Borrower shall not have reimbursed (or caused any
applicable Subsidiary to reimburse) such amount in full to such Letter of Credit
Issuer pursuant to section 3.3(a), such Letter of Credit Issuer shall promptly
notify the Administrative Agent, and the Administrative Agent shall promptly
notify each Participant of such failure, and each Participant shall promptly and
unconditionally pay to the Administrative Agent for the account of such Letter
of Credit Issuer, the amount of such Participant’s Percentage of such payment in
U.S. dollars and in same day funds, provided, however, that no Participant shall
be obligated to pay to the Administrative Agent its Percentage of such
unreimbursed amount for any wrongful payment made by such Letter of Credit
Issuer under a Letter of Credit as a result of acts or

 

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omissions constituting willful misconduct or gross negligence on the part of
such Letter of Credit Issuer. If the Administrative Agent so notifies any
Participant required to fund a payment under a Letter of Credit prior to 11:00
A.M. (local time at its Notice Office) on any Business Day, such Participant
shall make available to the Administrative Agent for the account of the relevant
Letter of Credit Issuer such Participant’s Percentage of the amount of such
payment on such Business Day in same day funds. If and to the extent such
Participant shall not have so made its Percentage of the amount of such payment
available to the Administrative Agent for the account of the relevant Letter of
Credit Issuer, such Participant agrees to pay to the Administrative Agent for
the account of such Letter of Credit Issuer, forthwith on demand such amount,
together with interest thereon, for each day from such date until the date such
amount is paid to the Administrative Agent for the account of such Letter of
Credit Issuer at the Federal Funds Effective Rate. The failure of any
Participant to make available to the Administrative Agent for the account of the
relevant Letter of Credit Issuer its Percentage of any payment under any Letter
of Credit shall not relieve any other Participant of its obligation hereunder to
make available to the Administrative Agent for the account of such Letter of
Credit Issuer its Percentage of any payment under any Letter of Credit on the
date required, as specified above, but no Participant shall be responsible for
the failure of any other Participant to make available to the Administrative
Agent for the account of such Letter of Credit Issuer such other Participant’s
Percentage of any such payment.

 

(d) Whenever a Letter of Credit Issuer receives a payment of a reimbursement
obligation as to which the Administrative Agent has received for the account of
such Letter of Credit Issuer any payments from the Participants pursuant to
section 3.4(c) above, such Letter of Credit Issuer shall pay to the
Administrative Agent and the Administrative Agent shall promptly pay to each
Participant that has paid its Percentage thereof, in U.S. dollars and in same
day funds, an amount equal to such Participant’s Percentage of the principal
amount thereof and interest thereon accruing after the purchase of the
respective participations, as and to the extent so received.

 

(e) The obligations of the Participants to make payments to the Administrative
Agent for the account of each Letter of Credit Issuer with respect to Letters of
Credit shall be irrevocable and not subject to counterclaim, set-off or other
defense or any other qualification or exception whatsoever and shall be made in
accordance with the terms and conditions of this Agreement under all
circumstances, including, without limitation, any of the following
circumstances:

 

(i) any lack of validity or enforceability of this Agreement or any of the other
Credit Documents;

 

(ii) the existence of any claim, set-off defense or other right that the
Borrower (or any Subsidiary) may have at any time against a beneficiary named in
a Letter of Credit, any transferee of any Letter of Credit (or any person for
whom any such transferee may be acting), the Administrative Agent, any Letter of
Credit Issuer, any Lender, or other person, whether in connection with this
Agreement, any Letter of Credit, the transactions contemplated herein or any
unrelated transactions (including any underlying transaction between the
Borrower (or any Subsidiary) and the beneficiary named in any such Letter of
Credit), other than any claim that the Borrower (or any Subsidiary that is the
account party with respect to a Letter of Credit) may have against any
applicable Letter of Credit Issuer for gross negligence or willful misconduct of
such Letter of Credit Issuer in making payment under any applicable Letter of
Credit;

 

(iii) any draft, certificate or other document presented under the Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect
or any statement therein being untrue or inaccurate in any respect;

 

(iv) the surrender or impairment of any security for the performance or
observance of any of the terms of any of the Credit Documents: or

 

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(v) the occurrence of any Default or Event of Default.

 

(f) To the extent the Letter of Credit Issuer is not indemnified by the
Borrower, the Participants will reimburse and indemnify the Letter of Credit
Issuer, in proportion to their respective Percentages, for and against any and
all liabilities, obligations, losses, damages, penalties, claims, actions,
judgments, costs, expenses or disbursements of whatsoever kind or nature that
may be imposed on, asserted against or incurred by the Letter of Credit Issuer
in performing its respective duties in any way related to or arising out of its
issuance of Letters of Credit, provided that no Participants shall be liable for
any portion of such liabilities, obligations, losses, damages, penalties,
claims, actions, judgments, costs, expenses or disbursements resulting from the
Letter of Credit Issuer’s gross negligence or willful misconduct.

 

3.5. Increased Costs. If after the Effective Date, the adoption of any
applicable law, rule or regulation, or any change therein, or any change in the
interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any Letter of Credit Issuer or any Lender with any
request or directive (whether or not having the force of law) by any such
authority, central bank or comparable agency (in each case made subsequent to
the Effective Date) shall either: (i) impose, modify or make applicable any
reserve, deposit, capital adequacy or similar requirement against Letters of
Credit issued by such Letter of Credit Issuer or such Lender’s participation
therein; or (ii) shall impose on such Letter of Credit Issuer or any Lender any
other conditions affecting this Agreement, any Letter of Credit or such Lender’s
participation therein; and the result of any of the foregoing is to increase the
cost to such Letter of Credit Issuer or such Lender of issuing, maintaining or
participating in any Letter of Credit, or to reduce the amount of any sum
received or receivable by such Letter of Credit Issuer or such Lender hereunder
(other than any increased cost or reduction in the amount received or receivable
resulting from the imposition of or a change in the rate of taxes or similar
charges), then, upon demand to the Borrower by such Letter of Credit Issuer or
such Lender (a copy of which notice shall be sent by such Letter of Credit
Issuer or such Lender to the Administrative Agent), the Borrower shall pay to
such Letter of Credit Issuer or such Lender such additional amount or amounts as
will compensate any such Letter of Credit Issuer or such Lender for such
increased cost or reduction. A certificate submitted to the Borrower by any
Letter of Credit Issuer or any Lender, as the case may be (a copy of which
certificate shall be sent by such Letter of Credit Issuer or such Lender to the
Administrative Agent), setting forth, in reasonable detail, the basis for the
determination of such additional amount or amounts necessary to compensate any
Letter of Credit Issuer or such Lender as aforesaid shall be conclusive and
binding on the Borrower absent manifest error, although the failure to deliver
any such certificate shall not release or diminish any of the Borrower’s
obligations to pay additional amounts pursuant to this section 3.5. Reference is
hereby made to the provisions of sections 2.10(d) and 2.12 for certain
limitations upon the rights of a Letter of Credit Issuer or Lender under this
section.

 

3.6. Guaranty of Subsidiary Letter of Credit Obligations. (a) The Borrower
hereby unconditionally guarantees, for the benefit of the Administrative Agent
and the Lenders, the full and punctual payment of the Obligations of each
Subsidiary under each Letter of Credit Document to which such Subsidiary is now
or hereafter becomes a party. Upon failure by any such Subsidiary to pay
punctually any such amount, the Borrower shall forthwith on demand by the
Administrative Agent pay the amount not so paid at the place and in the currency
and otherwise in the manner specified in this Agreement or any applicable Letter
of Credit Document.

 

(b) As a separate, additional and continuing obligation, the Borrower
unconditionally and irrevocably undertakes and agrees, for the benefit of the
Administrative Agent and the Lenders, that, should any amounts not be
recoverable from the Borrower under section 3.6(a) for any reason whatsoever
(including, without limitation, by reason of any provision of any Credit
Document or any other agreement or instrument executed in connection therewith
being or becoming void, unenforceable, or otherwise

 

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invalid under any applicable law) then, notwithstanding any notice or knowledge
thereof by any Lender, the Administrative Agent, any of their respective
Affiliates, or any other person, at any time, the Borrower as sole, original and
independent obligor, upon demand by the Administrative Agent, will make payment
to the Administrative Agent, for the account of the Lenders and the
Administrative Agent, of all such obligations not so recoverable by way of full
indemnity, in such currency and otherwise in such manner as is provided in the
Credit Documents.

 

(c) The obligations of the Borrower under this section shall be unconditional
and absolute and, without limiting the generality of the foregoing shall not be
released, discharged or otherwise affected by the occurrence, one or more times,
of any of the following:

 

(i) any extension, renewal, settlement, compromise, waiver or release in respect
to any obligation of any Subsidiary under any Letter of Credit Document, by
operation of law or otherwise;

 

(ii) any modification or amendment of or supplement to this Agreement, any Note
or any other Credit Document;

 

(iii) any release, non-perfection or invalidity of any direct or indirect
security for any obligation of the Borrower under this Agreement, any Note or
any other Credit Document or of any Subsidiary under any Letter of Credit
Document;

 

(iv) any change in the corporate existence, structure or ownership of any
Subsidiary or any insolvency, bankruptcy, reorganization or other similar
proceeding affecting any Subsidiary or its assets or any resulting release or
discharge of any obligation of any Subsidiary contained in any Letter of Credit
Document;

 

(v) the existence of any claim, set-off or other rights that the Borrower may
have at any time against any Subsidiary, the Administrative Agent, any Lender or
any other person, whether in connection herewith or any unrelated transactions;

 

(vi) any invalidity or unenforceability relating to or against any Subsidiary
for any reason of any Letter of Credit Document, or any provision of applicable
law or regulation purporting to prohibit the payment by any Subsidiary of any
Obligations in respect of any Letter of Credit; or

 

(vii) any other act or omission to act or delay of any kind by any Subsidiary,
the Administrative Agent, any Lender or any other person or any other
circumstance whatsoever that might, but for the provisions of this section,
constitute a legal or equitable discharge of the Borrower’s obligations under
this section.

 

(d) The Borrower’s obligations under this section shall remain in full force and
effect until the Commitments shall have terminated and the principal of and
interest on the Notes and all other amounts payable by the Borrower under the
Credit Documents and by any Subsidiary under the Letter of Credit Documents
shall have been paid in full. If at any time any payment of any of the
Obligations of any Subsidiary in respect of any Letter of Credit Document is
rescinded or must be otherwise restored or returned upon the insolvency,
bankruptcy or reorganization of such Subsidiary, the Borrower’s obligations
under this section with respect to such payment shall be reinstated at such time
as though such payment had been due but not made at such time.

 

(e) The Borrower irrevocably waives acceptance hereof, presentment, demand,
protest and any notice not provided for herein, as well as any requirement that
at any time any action be taken by any

 

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person against any Subsidiary or any other person, or against any collateral or
guaranty of any other person.

 

(f) The Borrower hereby subordinates all rights, whether arising by operation of
law or otherwise, that it may have upon making any payment under this section to
be subrogated to the rights of the payee against any Subsidiary with respect to
such payment or otherwise to be reimbursed, indemnified or exonerated by any
Subsidiary in respect thereof, to the indefeasible payment in full of all of the
Obligations.

 

(g) In the event that acceleration of the time for payment of any amount payable
by any Subsidiary under any Letter of Credit Document is stayed upon insolvency,
bankruptcy or reorganization of such Subsidiary, all such amounts otherwise
subject to acceleration under the terms of any applicable Letter of Credit
Document shall nonetheless be payable by the Borrower under this section
forthwith on demand by the Administrative Agent.

 

SECTION 4. FEES.

 

4.1. Facility Fee. (a) The Borrower agrees to pay to the Administrative Agent a
Facility Fee (“Facility Fee”), for the account of each Non-Defaulting Lender
that has a General Revolving Commitment, for the period from and including the
Effective Date to but not including the date the Total General Revolving
Commitment has been terminated and no General Revolving Loans are outstanding,
which Facility Fee, in the case of any such Non-Defaulting Lender, shall be
computed on the amount of the Total General Revolving Commitment of such
Non-Defaulting Lender, whether used or unused, at the Applicable Facility Fee
Rate. The Facility Fee shall be due and payable in arrears on a nonrefundable
basis, on the last Business Day of each March, June, September and December and
on the Maturity Date, for the preceding quarter (or shorter period, if
applicable), based on a year of 360 days and the actual number of days elapsed
in such period.

 

(b) As used herein, the term “Applicable Facility Fee Rate” means the particular
rate per annum determined by the Administrative Agent in accordance with the
Pricing Grid Table that appears in section 2.8(h) hereof, based on the
Borrower’s ratio of Consolidated Total Debt to Consolidated EBITDA, and the
following provisions:

 

(i) Initially, until changed hereunder in accordance with the following
provisions, the Applicable Facility Fee Rate will be 35 basis points per annum.

 

(ii) Commencing with the fiscal quarter of the Borrower ended on or nearest to
March 31, 2004, and continuing for each fiscal quarter thereafter, the
Administrative Agent will determine the Applicable Facility Fee Rate in
accordance with the Pricing Grid Table, based on the Borrower’s ratio of (x)
Consolidated Total Debt as of the end of the fiscal quarter, to (y) Consolidated
EBITDA for the Testing Period ended on the last day of the fiscal quarter, and
identified in such Pricing Grid Table. Changes in the Applicable Facility Fee
Rate shall be made and effective as of the same date as is provided in section
2.8(h) in the case of the determination or re-determination of the Applicable
Prime Rate Margin or Applicable Eurodollar Margin.

 

(iii) Notwithstanding the above provisions, during any period when (A) the
Borrower has failed to timely deliver its consolidated financial statements
referred to in section 9.1(a) or (b), accompanied by the certificate and
calculations referred to in section 9.1(c), or (B) an Event of Default has
occurred and is continuing, the Applicable Facility Fee Rate shall be the
highest rate per annum indicated therefor in the Pricing Grid Table, regardless
of the Borrower’s ratio of Consolidated Total Debt to Consolidated EBITDA at
such time.

 

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(iv) Any changes in the Applicable Facility Fee Rate shall be determined by the
Administrative Agent in accordance with the above provisions and the
Administrative Agent will promptly provide notice of such determinations to the
Borrower and the Lenders. Any such determination by the Administrative Agent
pursuant to this section 4.1(b) shall be conclusive and binding absent manifest
error.

 

4.2. Letter of Credit Fees. The Borrower agrees to pay to the Administrative
Agent, for the account of each Non-Defaulting Lender, pro rata on the basis of
its Percentage, a fee in respect of each Letter of Credit (the “Letter of Credit
Fee”), payable quarterly in arrears on the last Business Day of each March,
June, September and December and on the Maturity Date, computed at the rate per
annum equal to the Applicable Eurodollar Margin then in effect on the Stated
Amount thereof for the period from the date of issuance (or any increase in the
amount, or renewal or extension) to the expiration date thereof (including any
extensions of such expiration date that may be made at the election of the
beneficiary thereof). Notwithstanding the above provisions, if an Event of
Default is in existence, the Borrower will pay to the Administrative Agent, on
demand, for the account of each Non-Defaulting Lender, pro rata on the basis of
its Percentage, an additional Letter of Credit Fee, computed at 2% per annum on
the Stated Amount of each Letter of Credit for the period such Default or Event
of Default is in existence.

 

4.3. Facing Fees. The Borrower agrees to pay directly to each Letter of Credit
Issuer, for its own account, a fee in respect of each Letter of Credit issued by
it (a “Facing Fee”), payable quarterly in arrears on the last Business Day of
each March, June, September and December and on the Maturity Date, computed at a
rate of 1/8 of 1% per annum on the Stated Amount thereof for the period from the
date of issuance (or increase, renewal or extension) to the expiration date
thereof (including any extensions of such expiration date that may be made at
the election of the beneficiary thereof.

 

4.4. Letter of Credit Administrative Fees. The Borrower agrees to pay directly
to each Letter of Credit Issuer upon each issuance of, drawing under, and/or
amendment, extension, renewal or transfer of, a Letter of Credit issued by it
such amount as shall at the time of such issuance, drawing, amendment,
extension, renewal or transfer be the administrative or processing charge that
such Letter of Credit Issuer customarily charges for issuances, drawings under
or amendments, extensions, renewals or transfers of, letters of credit issued by
it.

 

4.5. Other Fees. The Borrower shall pay to the Administrative Agent on the
Effective Date and thereafter for its own account and/or for distribution to the
Lenders such fees as heretofore agreed by the Borrower and the Administrative
Agent in the Commitment Letter dated February 19, 2003.

 

4.6. Computations of Fees. All computations of Fees under this Agreement shall
be made in accordance with section 13.7(b).

 

SECTION 5. REDUCTIONS AND TERMINATION OF COMMITMENTS.

 

5.1. Voluntary Termination/Reduction of Commitments. Upon at least three
Business Days’ prior written notice (or telephonic notice confirmed in writing)
to the Administrative Agent at its Notice Office (which notice the
Administrative Agent shall promptly transmit to each of the Lenders), the
Borrower shall have the right, without premium or penalty, to:

 

(a) terminate the Total Commitment, provided that all outstanding Loans are
contemporaneously prepaid in accordance with section 6.1;

 

(b) terminate the Swing Line Revolving Commitment, provided that all outstanding
Swing Line Revolving Loans are contemporaneously prepaid in accordance with
section 6.1;

 

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(c) partially and permanently reduce the Unutilized Total General Revolving
Commitment, provided that: (i) any such reduction shall apply to proportionately
and permanently reduce the General Revolving Commitment of each of the Lenders;
(ii) any partial reduction of the Unutilized Total General Revolving Commitment
pursuant to this section 5.1(c) shall be in the amount of at least $5,000,000
(or, if greater, in integral multiples of $1,000,000); and (iii) after giving
effect to any such partial reduction of the Unutilized Total General Revolving
Commitment, the Total General Revolving Commitment then in effect shall exceed
the Swing Line Revolving Commitment then in effect by at least $20,000,000;
and/or

 

(d) partially and permanently reduce the Unutilized Swing Line Revolving
Commitment, provided that any partial reduction of the Unutilized Swing Line
Revolving Commitment pursuant to this section 5.1(d) shall be in the amount of
at least $1,000,000 (or, if greater, in integral multiples of $1,000,000).

 

5.2. Mandatory Termination/Adjustments of Commitments, etc. (a) The Total
Commitment (and the Commitment of each Lender) shall terminate on February 27,
2004 unless the Closing Date has occurred on or prior to such date.

 

(b) The Total Commitment shall terminate (and the Commitment of each Lender
shall terminate) on the earlier of (x) the Maturity Date and (y) the date on
which a Change of Control occurs.

 

(c) The Total General Revolving Commitment shall be permanently reduced, without
premium or penalty, at the time that any mandatory prepayment of General
Revolving Loans would be made pursuant to section 6.2(e), (f), (g) or (h) if
General Revolving Loans were then outstanding in the full amount of the Total
General Revolving Commitment then in effect, in an amount equal to the required
prepayment of principal of General Revolving Loans that would be required to be
made in such circumstance. Any such reduction shall apply to proportionately and
permanently reduce the General Revolving Commitment of each of the Lenders. The
Borrower will provide at least three Business Days’ prior written notice (or
telephonic notice confirmed in writing) to the Administrative Agent at its
Notice Office (which notice the Administrative Agent shall promptly transmit to
each of the Lenders), of any reduction of the Total General Revolving Commitment
pursuant to this section 5.2(c), specifying the date and amount of the
reduction.

 

SECTION 6. PAYMENTS.

 

6.1. Voluntary Prepayments. The Borrower shall have the right to prepay any of
its Loans, in whole or in part, without premium or penalty, from time to time on
the following terms and conditions:

 

(a) the Borrower shall give the Administrative Agent at the Notice Office
written or telephonic notice (in the case of telephonic notice, promptly
confirmed in writing if so requested by the Administrative Agent) of its intent
to prepay the Loans, the amount of such prepayment and (in the case of
Eurodollar Loans) the specific Borrowing(s) pursuant to which made, which notice
shall be received by the Administrative Agent by:

 

(x) 11:00 A.M. (local time at the Notice Office) three Business Days prior to
the date of such prepayment, in the case of any prepayment of Eurodollar Loans;
or

 

(y) 11:00 A.M. (local time at the Notice Office) one Business day prior to the
date of such prepayment, in the case of any prepayment of Prime Rate Loans;

 

and which notice shall promptly be transmitted by the Administrative Agent to
each of the affected Lenders;

 

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(b) in the case of prepayment of any Borrowings under the General Revolving
Facility, each partial prepayment of any such Borrowing shall be in an aggregate
principal of at least $1,000,000 or an integral multiple of $500,000 in excess
thereof, in the case of Prime Rate Loans, and at least $2,000,000 (or the
substantial equivalent thereof in any Alternative Currency) or an integral
multiple of $1,000,000 (or the substantial equivalent thereof in any Alternative
Currency) in excess thereof, in the case of Eurodollar Loans;

 

(c) in the case of prepayment of any Borrowings under the Swing Line Revolving
Facility, each partial prepayment of any such Borrowing shall be in an aggregate
principal of at least $500,000 or an integral multiple of $250,000 (or the
substantial equivalent thereof in any Alternative Currency) in excess thereof;

 

(d) no partial prepayment of any Loans made pursuant to a Borrowing shall reduce
the aggregate principal amount of such Loans outstanding pursuant to such
Borrowing to an amount less than the Minimum Borrowing Amount applicable
thereto;

 

(e) each prepayment in respect of any Loans made pursuant to a Borrowing shall
be applied pro rata among such Loans; and

 

(f) each prepayment of Eurodollar Loans pursuant to this section 6.1 on any date
other than the last day of the Interest Period applicable thereto shall be
accompanied by any amounts payable in respect thereof under section 2.11.

 

6.2. Mandatory Prepayments. The Loans shall be subject to mandatory prepayment
in accordance with the following provisions:

 

(a) If Outstanding General Revolving Loans, Letter of Credit Outstandings and
Swing Line Revolving Loans Exceed Total General Revolving Commitment. If on any
date (after giving effect to any other payments on such date) the sum of (i) the
aggregate outstanding principal amount of General Revolving Loans, plus (ii) the
aggregate amount of Letter of Credit Outstandings, plus (iii) the aggregate
outstanding principal amount of Swing Line Revolving Loans, exceeds the Total
General Revolving Commitment as then in effect, the Borrower shall prepay on
such date that principal amount of Swing Line Revolving Loans and, after Swing
Line Revolving Loans have been paid in full, Unpaid Drawings and, after Unpaid
Drawings have been paid in full, General Revolving Loans, in an aggregate amount
at least equal to such excess and conforming in the case of partial prepayments
of any Loans to the applicable requirements as to the amounts of partial
prepayments that are contained in section 6.1.

 

(b) If Outstanding Swing Line Revolving Loans Exceed Unutilized Total General
Revolving Commitment. If on any date (after giving effect to any other payments
on such date) the aggregate outstanding principal amount of Swing Line Revolving
Loans exceeds the Unutilized Total General Revolving Commitment at such time,
the Borrower shall prepay on such date Swing Line Revolving Loans in an
aggregate amount at least equal to such excess and conforming in the case of
partial prepayments of Swing Line Revolving Loans to the requirements as to the
amounts of partial prepayments of Swing Line Revolving Loans that are contained
in section 6.1.

 

(c) If Outstanding Swing Line Revolving Loans Exceed Swing Line Revolving
Commitment. If on any date (after giving effect to any other payments on such
date) the aggregate outstanding principal amount of Swing Line Revolving Loans
exceeds the Swing Line Revolving Commitment at such time, the Borrower shall
prepay on such date Swing Line Revolving Loans in an aggregate amount at least
equal to such excess and conforming in the case of partial prepayments of Swing
Line Revolving Loans to the requirements as to the amounts of partial
prepayments of Swing Line Revolving Loans that are contained in section 6.1.

 

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(d) If Alternative Currency Loans Exceed Alternative Currency Sublimit. If on
any date (after giving effect to any other payments on such date) the aggregate
outstanding principal amount of General Revolving Loans denominated in an
Alternative Currency exceeds the Alternative Currency Sublimit, the Borrower
shall prepay on such date General Revolving Loans denominated in Alternative
Currencies in an aggregate principal amount at least equal to such excess and
conforming in the case of partial prepayments of General Revolving Loans to the
requirements as to the amounts of partial prepayments that are contained in
section 6.1.

 

(e) Certain Proceeds of Asset Sales. If during any fiscal year of the Borrower,
the Borrower and its Subsidiaries have received cumulative Net Cash Proceeds
during such fiscal year from one or more Asset Sales in an aggregate amount at
least equal to $10,000,000, then not later than the third Business Day following
the date of receipt of any Net Cash Proceeds in excess of such amount, an
amount, conforming to the requirements as to the amount of partial prepayments
contained in section 6.1, at least equal to 100% of the Net Cash Proceeds then
received in excess of such amount from any Asset Sale, shall be applied as a
mandatory prepayment of principal of first, Swing Line Revolving Loans and,
second, after Swing Line Revolving Loans have been paid in full, Unpaid Drawings
and, third, after Unpaid Drawings have been paid in full, General Revolving
Loans provided, that (i) if no Default under section 11.1(a) or Event of Default
shall have occurred and be continuing, (ii) the Borrower and its Subsidiaries
have scheduled Consolidated Capital Expenditures during the following 12 months,
and (iii) the Borrower notifies the Administrative Agent of the amount and
nature thereof and of its intention to reinvest all or a portion of such Net
Cash Proceeds in such Consolidated Capital Expenditures during such 12 month
period, then no such prepayment shall be required to the extent the Borrower so
indicates that such reinvestment will take place. If at the end of any such 12
month period any portion of such Net Cash Proceeds has not been so reinvested,
the Borrower will immediately make a prepayment of the outstanding Swing Line
Revolving Loans and General Revolving Loans as provided above in an amount,
conforming to the requirements as to amount of prepayments contained in section
6.1, at least equal to such remaining amount.

 

(f) Proceeds of Debt Incurrence. Concurrently with the receipt by the Borrower
or any Subsidiary of any Net Debt Proceeds, the Borrower shall deliver to the
Administrative Agent a calculation of the amount of such Net Debt Proceeds and
make a mandatory prepayment at least equal to 100% of the Net Debt Proceeds to
be applied as a mandatory prepayment of principal of first, Swing Line Revolving
Loans and, second, after Swing Line Revolving Loans have been paid in full,
Unpaid Drawings and, third, after Unpaid Drawings have been paid in full,
General Revolving Loans.

 

(g) Event of Loss. If during any fiscal year of the Company, the Company and its
Subsidiaries have received cumulative Net Cash Proceeds during such fiscal year
from one or more Events of Loss of at least $5,000,000, not later than the fifth
Business Day following the date of receipt of any Net Cash Proceeds in excess of
such amount, an amount, conforming to the requirements as to the amount of
partial prepayments contained in section 6.1, at least equal to 100% of the Net
Cash Proceeds then received in excess of such amount from any Event of Loss,
shall be applied as a mandatory prepayment of principal.

 

(h) Material Recovery Event. Concurrently with the receipt by the Borrower or
any Subsidiary of Net Cash Proceeds in respect of any Material Recovery Event,
the Borrower shall deliver to the Administrative Agent a calculation of the
amount of any such Net Cash Proceeds and make a mandatory prepayment at least
equal to 100% of such Net Cash Proceeds to be applied as a mandatory prepayment
of principal of first, Swing Line Revolving Loans and, second, after Swing Line
Revolving Loans have been paid in full, Unpaid Drawings and, third, after Unpaid
Drawings have been paid in full, General Revolving Loans.

 

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(i) Change of Control. On the date of which a Change of Control occurs,
notwithstanding anything to the contrary contained in this Agreement, no further
Borrowings shall be made and the then outstanding principal amount of all Loans,
if any, and other Obligations, shall become due and payable and shall be prepaid
in full, together with accrued interest and Fees and the Borrower shall
contemporaneously either (i) cause all outstanding Letters of Credit to be
surrendered for cancellation (any such Letters of Credit to be replaced by
letters of credit issued by other financial institutions acceptable to the
Required General Revolving Lenders), or (ii) the Borrower shall pay to the
Administrative Agent an amount in cash and/or Cash Equivalents equal to 100% of
the Letter of Credit Outstandings and the Administrative Agent shall hold such
payment as security for the reimbursement obligations of the Borrower in respect
of Letters of Credit pursuant to a cash collateral agreement to be entered into
in form and substance reasonably satisfactory to the Administrative Agent, each
Letter of Credit Issuer and the Company (which shall permit certain investments
in Cash Equivalents satisfactory to the Administrative Agent, each Letter of
Credit Issuer and the Borrower until the proceeds are applied to the secured
obligations).

 

(j) Particular Loans to be Prepaid. With respect to each repayment or prepayment
of Loans required by this section 6.2, the Borrower shall designate the Types of
Loans that are to be prepaid and the specific Borrowing(s) pursuant to which
such repayment or prepayment is to be made, provided that: (i) the Borrower
shall first so designate all Loans that are Prime Rate Loans and Eurodollar
Loans with Interest Periods ending on the date of repayment or prepayment prior
to designating any other Eurodollar Loans for repayment or prepayment; (ii) if
the outstanding principal amount of Eurodollar Loans made pursuant to a
Borrowing is reduced below the applicable Minimum Borrowing Amount as a result
of any such repayment or prepayment, then all the Loans outstanding pursuant to
such Borrowing shall be Converted into Prime Rate Loans; and (iii) each
repayment and prepayment of any Loans made pursuant to a Borrowing shall be
applied pro rata among such Loans. In the absence of a designation by the
Borrower as described in the preceding sentence, the Administrative Agent shall,
subject to the above, make such designation in its sole discretion with a view,
but no obligation, to minimize breakage costs owing under section 2.11. Any
repayment or prepayment of Eurodollar Loans pursuant to this section 6.2 shall
in all events be accompanied by such compensation as is required by section
2.11.

 

6.3. Method and Place of Payment. (a) Except as otherwise specifically provided
herein, all payments under this Agreement shall be made to the Administrative
Agent for the ratable (based on its pro rata share) account of the Lenders
entitled thereto, not later than 11:00 A.M. (local time at the Payment Office)
on the date when due and shall be made in immediately available funds and in
lawful money of the United States of America (in the case of Loans denominated
in Dollars), or in the applicable Alternative Currency (in the case of Loans
denominated in an Alternative Currency), at the Payment Office, it being
understood that written notice by the Borrower to the Administrative Agent to
make a payment from the funds in the Borrower’s account at the Payment Office
shall constitute the making of such payment to the extent of such funds held in
such account. Any payments under this Agreement that are made later than 11:00
A.M. (local time at the Payment Office) shall be deemed to have been made on the
next succeeding Business Day. Whenever any payment to be made hereunder shall be
stated to be due on a day that is not a Business Day, the due date thereof shall
be extended to the next succeeding Business Day and, with respect to payments of
principal, interest shall be payable during such extension at the applicable
rate in effect immediately prior to such extension.

 

(b) If at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, interest and Fees
then due hereunder and an Event of Default is not then in existence, such funds
shall be applied: (i) first, towards payment of interest and Fees then due
hereunder, ratably among the parties entitled thereto in accordance with the
amounts of interest and Fees then due to such parties; and (ii) second, towards
payment of principal then due hereunder, ratably among the parties entitled
thereto in accordance with the amounts of principal then due to such parties.

 

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6.4. Net Payments. (a) All payments made by the Borrower hereunder or under any
Note will be made without setoff, counterclaim or other defense. Except as
provided for in section 6.4(b), all such payments will be made free and clear
of, and without deduction or withholding for, any present or future taxes,
levies, imposts, duties, fees, assessments or other charges of whatever nature
now or hereafter imposed by any jurisdiction or by any political subdivision or
taxing authority thereof or therein with respect to such payments (but
excluding, except as provided in the second succeeding sentence, any tax,
imposed on or measured by the net income or net profits of a Lender pursuant to
the laws of the jurisdiction under which such Lender is organized or the
jurisdiction in which the principal office or Applicable Lending Office of such
Lender is located or any subdivision thereof or therein) and all interest,
penalties or similar liabilities with respect to such nonexcluded taxes, levies
imposts, duties, fees, assessments or other charges (all such nonexcluded taxes
levies, imposts, duties, fees assessments or other charges being referred to
collectively as “Taxes”). If any Taxes are so levied or imposed, the Borrower
agrees to pay the full amount of such Taxes and such additional amounts as may
be necessary so that every payment by them of all amounts due hereunder or under
any Note, after withholding or deduction for or on account of any Taxes will not
be less than the amount provided for herein or in such Note. If any amounts are
payable in respect of Taxes pursuant to the preceding sentence, the Borrower
agrees to reimburse each Lender, upon the written request of such Lender for
taxes imposed on or measured by the net income or profits of such Lender
pursuant to the laws of the jurisdiction in which such Lender is organized or in
which the principal office or Applicable Lending Office of such Lender is
located or under the laws of any political subdivision or taxing authority of
any such jurisdiction in which the principal office or Applicable Lending Office
of such Lender is located and for any withholding of income or similar taxes
imposed by the United States of America as such Lender shall determine are
payable by, or withheld from, such Lender in respect of such amounts so paid to
or on behalf of such Lender pursuant to the preceding sentence and in respect of
any amounts paid to or on behalf of such Lender pursuant to this sentence, which
request shall be accompanied by a statement from such Lender setting forth, in
reasonable detail, the computations used in determining such amounts. The
Borrower will furnish to the Administrative Agent within 45 days after the date
the payment of any Taxes, or any withholding or deduction on account thereof, is
due pursuant to applicable law certified copies of tax receipts, or other
evidence satisfactory to the relevant Lender, evidencing such payment by the
Borrower. The Borrower will indemnify and hold harmless the Administrative Agent
and each Lender, and reimburse the Administrative Agent or such Lender upon its
written request, for the amount of any Taxes so levied or imposed and paid or
withheld by such Lender.

 

(b) Each Lender that is a Foreign Lender agrees to provide to the Company and
the Administrative Agent on or prior to the Effective Date, or in the cases of a
Lender that is an assignee or transferee of an interest under this Agreement
pursuant to section 13.4 (unless the respective Lender was already a Lender
hereunder immediately prior to such assignment or transfer and such Lender is in
compliance with the provisions of this section 6.4(b)), on the date of such
assignment or transfer to such Lender, (i) two accurate and complete original
signed copies of Internal Revenue Service Form W-8BEN or W-8ECI (or successor
forms) certifying to such Lender’s entitlement to a complete exemption from
United States withholding tax with respect to payments to be made under this
Agreement or any Note, or (ii) if the Lender is not a “bank” within the meaning
of section 881(c)(3)(A) of the Code and cannot deliver either Internal Revenue
Service Form W-8BEN or W-8ECI pursuant to clause (i) above, (x) a certificate
substantially in the form of Exhibit D (any such certificate, a “Section
6.4(b)(ii) Certificate”) and (y) two accurate and complete original signed
copies of Internal Revenue Service Form W 8 (or successor form) certifying to
such Lender’s entitlement to a complete exemption from United States withholding
tax with respect to payments of interest to be made under this Agreement or any
Note. In addition, each Lender agrees that from time to time after the Effective
Date, when a lapse in time or change in circumstances renders the previous
certification obsolete or inaccurate in any material respect, it will deliver to
the Borrower and the Administrative Agent two new accurate and complete original
signed copies of Internal Revenue Service Form W-8BEN or W-8ECI, and a section
6.4(b)(ii)

 

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Certificate, as the case may be, and such other forms as may be required in
order to confirm or establish the entitlement of such Lender to a continued
exemption from or reduction in United States withholding tax with respect to
payments under this Agreement or any Note, or it shall immediately notify the
Borrower and the Administrative Agent of its inability to deliver any such Form
or Certificate, in which case such Lender shall not be required to deliver any
such Form or Certificate pursuant to this section 6.4(b). Notwithstanding
anything to the contrary contained in section 6.4(a), but subject to section
13.4(g) and the immediately succeeding sentence, (x) the Borrower shall be
entitled, to the extent it is required to do so by law, to deduct or withhold
income or other similar taxes imposed by the United States (or any political
subdivision or taxing authority thereof or therein) from interest, fees or other
amounts payable hereunder for the account of any Lender that is a Foreign Lender
and that has not provided to the Borrower such forms that establish a complete
exemption from such deduction or withholding and (y) the Borrower shall not be
obligated pursuant to section 6.4(a) hereof to gross-up payments to be made to a
Lender in respect of income or similar taxes imposed by the United States or any
additional amounts with respect thereto (I) if such Lender has not provided to
the Borrower the Internal Revenue Service forms required to be provided to the
Borrower pursuant to this section 6.4(b) or (II) in the case of a payment other
than interest, to a Lender described in clause (ii) above, to the extent that
such forms do not establish a complete exemption from withholding of such taxes.
Notwithstanding anything to the contrary contained in the preceding sentence or
elsewhere in this section 6.4 and except as specifically provided for in section
13.4(g), the Borrower agrees to pay additional amounts and indemnify each Lender
in the manner set forth in section 6.4(a) (without regard to the identity of the
jurisdiction requiring the deduction or withholding) in respect of any Taxes
deducted or withheld by it as described in the previous sentence as a result of
any changes after the Effective Date in any applicable law, treaty, governmental
rule, regulation, guideline or order, or in the interpretation thereof, relating
to the deducting or withholding of income or similar Taxes.

 

(c) If any Lender, in its sole opinion, determines that it has finally and
irrevocably received or been granted a refund in respect of any Taxes paid as to
which indemnification has been paid by the Borrower pursuant to this section, it
shall promptly remit such refund (including any interest received in respect
thereof), net of all out-of-pocket costs and expenses; provided, that the
Borrower agrees to promptly return any such refund (plus interest) to such
Lender in the event such Lender is required to repay such refund to the relevant
taxing authority. Any such Lender shall provide the Borrower with a copy of any
notice of assessment from the relevant taxing authority (redacting any unrelated
confidential information contained therein) requiring repayment of such refund.
Nothing contained herein shall impose an obligation on any Lender to apply for
any such refund.

 

6.5. Late Charges. If any principal of any Loan is not paid within 10 days after
the Administrative Agent shall have given the Borrower notice of demand for the
payment of the same or within 10 days after any Event of Default described in
section 11.1(g) in respect of the Borrower shall have occurred, or if any
interest on any Loan is not paid within 10 days after the same becomes due, then
and in any such case the Administrative Agent shall have the right to assess a
late charge, payable by the Borrower upon demand, in an amount equal to the
greater of $20.00 or 3% of the amount not timely paid. Any such late charge
shall be for the account of the Lenders for the benefit of whom such amount was
not timely paid and shall be in addition to any other amounts payable by the
Borrower under the Credit Documents.

 

SECTION 7. CONDITIONS PRECEDENT.

 

7.1. Conditions Precedent at Closing Date. The obligation of the Lenders to make
Loans is subject to the satisfaction of each of the following conditions on the
Closing Date:

 

(a) Effectiveness; Notes; Other Credit Documents. On or prior to the Closing
Date, (i) the Effective Date shall have occurred and (ii) there shall have been
delivered to the Administrative Agent for

 

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the account of each Lender the appropriate Note or Notes executed by the
Borrower, in each case, in the amount, maturity and as otherwise provided
herein. The Credit Parties named therein shall have duly executed and delivered
and there shall be in full force and effect, and original counterparts shall
have been delivered to the Administrative Agent, in sufficient quantities for
the Lenders, of the Subsidiary Guaranty and any other Credit Document,
instrument or other item requested by the Administrative Agent.

 

(b) Fees, etc. The Borrower shall have paid or caused to be paid all fees
required to be paid by it on or prior to such date pursuant to section 4 hereof
and all reasonable fees and expenses of the Administrative Agent and of special
counsel to the Administrative Agent that have been invoiced on or prior to such
date in connection with the preparation, execution and delivery of this
Agreement and the other Credit Documents and the consummation of the
transactions contemplated hereby and thereby.

 

(c) Corporate Charter, Bylaws and Good Standing Certificates. The Administrative
Agent shall have received, in sufficient quantity for the Administrative Agent
and the Lenders: (i) a copy of the Certificate of Incorporation of the Borrower
and each other Credit Party and any and all amendments and restatements thereof,
certified as of a recent date by the Secretary of State or other governmental
official of the jurisdiction of its incorporation, and certified by the
Secretary or Assistant Secretary of such Credit Party as being true, correct and
in full and force and effect; (ii) a copy of the By-Laws or equivalent governing
documents of the Borrower and each other Credit Party, certified as true,
correct and in full force and effect by the Secretary or an Assistant Secretary
of such Credit Party; (iii) a good standing certificate from the Secretary of
State or other governmental official of the jurisdiction of its incorporation,
dated as of a recent date, listing all charter documents affecting the Borrower
and each other Credit Party and certifying as to the good standing of the
Borrower and each other Credit Party, as applicable; and (iv) certificates of
good standing from each other jurisdiction in which the failure of the Borrower
and each other Credit Party to be authorized or qualified to do business could
reasonably be expected to have a Material Adverse Effect.

 

(d) Corporate Certificate. The Administrative Agent shall have received, in
sufficient quantity for the Administrative Agent and the Lenders, a certificate
of the Secretary or an Assistant Secretary of the Borrower and each other Credit
Party, dated the Closing Date, substantially in the form attached hereto as
Exhibit C, and such certificate shall be satisfactory in form and substance to
the Administrative Agent.

 

(e) Borrower’s Closing Certificate. The Administrative Agent shall have received
a certificate, dated the Closing Date, of a responsible financial or accounting
officer of the Borrower to the effect that, at and as of the Closing Date and
both before and after giving effect to the initial Borrowings hereunder and the
application of the proceeds thereof: (x) the Borrower is in compliance with all
of the covenants contained in sections 9 and 10 of this Agreement; (y) no
Default or Event of Default has occurred or is continuing; and (z) all
representations and warranties of the Borrower contained herein or in the other
Credit Documents are true and correct in all material respects with the same
effect as though such representations and warranties had been made on and as of
the Closing Date, except that as to any such representations and warranties that
expressly relate to an earlier specified date, such representations and
warranties are only represented as having been true and correct in all material
respects as of the date when made.

 

(f) Opinion of Counsel. The Administrative Agent shall have received an opinion,
addressed to the Administrative Agent and each of the Lenders and dated the
Closing Date, from Michael J. Mocniak, Vice President, Secretary and General
Counsel of the Borrower, covering such matters incident to the transactions
contemplated hereby as the Administrative Agent may reasonably request, such
opinion to be in form and substance satisfactory to the Administrative Agent.

 

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(g) Solvency Certificate. The Administrative Agent shall have received, in
sufficient quantities for the Lenders, a duly executed solvency certificate
substantially in the form attached hereto as Exhibit D and such certificate
shall be satisfactory in form and substance to each of the Lenders.

 

(h) Existing Credit Facilities. Contemporaneously with the Closing Date, the
Borrower shall have terminated the Existing Credit Facility and repaid all
outstanding obligations thereunder.

 

(i) Proceedings and Documents. All corporate and other proceedings and all
documents incidental to the transactions contemplated hereby shall be
satisfactory in substance and form to the Administrative Agent and the Lenders
and the Administrative Agent and its special counsel and the Lenders shall have
received all such counterpart originals or certified or other copies of such
documents as the Administrative Agent or its special counsel or any Lender may
reasonably request.

 

(j) No Disruption of Financial and Capital Markets. There shall not have
occurred and be continuing a material disruption of or material adverse change
in the financial, banking, or capital markets that would have an adverse effect
on the syndication of credit facilities similar in nature to this Agreement, as
determined by the Administrative Agent in its reasonable discretion.

 

(k) Evidence of Insurance. The Administrative Agent shall have received copies
of certificates of insurance and other evidence, satisfactory to it, of
compliance with the insurance requirements of this Agreement and the other
Credit Documents.

 

(l) Search Reports. The Administrative Agent shall have received completed
search reports from one or more commercial search firms acceptable to the
Administrative Agent, listing all of the effective financing statements filed
against the Borrower and any of its Domestic Subsidiaries in any jurisdiction in
which the Borrower or any of its Domestic Subsidiaries is organized, maintains a
chief executive office or in which any property is owned or leased by the
Borrower or any of its Domestic Subsidiaries, together with copies of such
financing statements.

 

(m) Absence of Litigation. There shall not be any action, suits or proceedings
pending or threatened with respect to the Borrower or its Subsidiaries; (i) that
have, or could reasonably be expected to have, a Material Adverse Effect; or
(ii) that question the validity or enforceability of any of the Credit
Documents, or of any action to be taken by the Borrower pursuant to any of the
Credit Documents.

 

(n) Due Diligence. The Administrative Agent shall be reasonably satisfied in all
respects with the results of its due diligence investigation of the Borrower and
its Subsidiaries.

 

(o) Approvals, etc. The Administrative Agent shall have received evidence that
all necessary consents, permits and approvals (governmental or otherwise)
required for the execution, delivery and performance by each Credit Party of the
Credit Documents and the Related Transaction Documents have been duly obtained
and are in full force and effect.

 

(p) Acquisition Documents. The transactions contemplated by the Purchase
Agreement shall be consummated simultaneously with the closing hereof, and the
Administrative Agent shall have received certified copies of the Related
Transaction Documents.

 

(q) Material Adverse Effect. As of the Closing Date, no condition or event shall
have occurred since December 31, 2002 that has resulted in, or could reasonably
be expected to result in, a Material Adverse Effect.

 

(r) Minimum Availability. As of the Closing Date, the sum of the (i) aggregate
outstanding principal amount of General Revolving Loans, plus (ii) the aggregate
amount of Letter of Credit

 

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Outstandings, plus (iii) the aggregate outstanding principal amount of Swing
Line Revolving Loans shall not exceed $111,000,000.

 

7.2. Conditions Precedent to All Loans. The obligation of the Lenders to make
each Loan is subject, at the time thereof, to the satisfaction of the following
conditions:

 

(a) Notice of Borrowing, etc. The Administrative Agent shall have received a
Notice of Borrowing meeting the requirements of section 2.3 with respect to the
incurrence of Loans.

 

(b) No Default; Representations and Warranties. At the time of such Loan and
also after giving effect thereto: (i) there shall exist no Default or Event of
Default; and (ii) all representations and warranties of the Borrower contained
herein or in the other Credit Documents shall be true and correct in all
material respects with the same effect as though such representations and
warranties had been made on and as of the date of such Loan, except to the
extent that such representations and warranties expressly relate to an earlier
specified date, in which case such representations and warranties shall have
been true and correct in all material respects as of the date when made.

 

The acceptance of the benefits of each Loan shall constitute a representation
and warranty by the Borrower to each of the Lenders that all of the applicable
conditions specified in section 7.1 and/or 7.2, as the case may be, exist as of
that time. All of the certificates, legal opinions and other documents and
papers referred to in this section 7, unless otherwise specified, shall be
delivered to the Administrative Agent for the account of each of the Lenders
and, except for the Notes, in sufficient counterparts for each of the Lenders,
and the Administrative Agent will promptly distribute to the Lenders their
respective Notes and copies of such other certificates, legal opinions and
documents.

 

SECTION 8. REPRESENTATIONS AND WARRANTIES.

 

In order to induce the Lenders to enter into this Agreement and to make the
Loans provided for herein, the Borrower makes the following representations and
warranties to, and agreements with, the Lenders, all of which shall survive the
execution and delivery of this Agreement and the making of each Loan:

 

8.1. Corporate Status, etc. Each of the Borrower and its Subsidiaries: (i) is a
duly organized or formed and validly existing corporation, partnership or
limited liability company, as the case may be, in good standing under the laws
of the jurisdiction of its formation and has the corporate, partnership or
limited liability company power and authority, as applicable, to own its
property and assets and to transact the business in which it is engaged and
presently proposes to engage; and (ii) has duly qualified and is authorized to
do business in all jurisdictions where it is required to be so qualified except
where the failure to be so qualified would not have a Material Adverse Effect.

 

8.2. Subsidiaries. Annex II hereto lists, as of the date hereof, each Subsidiary
of the Borrower and each other Credit Party (and the direct and indirect
ownership interest of the Borrower or such other Credit Party, as applicable,
therein).

 

8.3. Corporate Power and Authority, etc. Each Credit Party has the corporate
power and authority to execute, deliver and carry out the terms and provisions
of the Credit Documents to which it is party and has taken all necessary
corporate action to authorize the execution, delivery and performance of the
Credit Documents to which it is party. Each Credit Party has duly executed and
delivered each Credit Document to which it is party, and each Credit Document to
which it is party constitutes the legal, valid and binding agreement or
obligation of each Credit Party enforceable in accordance with its terms, except
to the extent that the enforceability thereof may be limited by applicable
bankruptcy, insolvency,

 

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reorganization, moratorium or other similar laws generally affecting creditors’
rights and by equitable principles (regardless of whether enforcement is sought
in equity or at law).

 

8.4. No Violation. Neither the execution, delivery and performance by the Credit
Parties of the Credit Documents to which each is party nor compliance with the
terms and provisions thereof: (i) will contravene any provision of any law,
statute, rule, regulation, order, writ, injunction or decree of any court or
governmental instrumentality applicable to such Credit Party or its properties
and assets; (ii) will conflict with or result in any breach of, any of the
terms, covenants, conditions or provisions of, or constitute a default under, or
result in the creation or imposition of (or the obligation to create or impose)
any Lien upon any of the property or assets of each Credit Party pursuant to the
terms of any promissory note, bond, debenture, indenture, mortgage, deed of
trust, credit or loan agreement, or any other material agreement or other
instrument, to which each Credit Party is a party or by which it or any of its
property or assets are bound or to which it may be subject; or (iii) will
violate any provision of the articles of incorporation or bylaws of each Credit
Party.

 

8.5. Governmental Approvals. No order, consent, approval, license,
authorization, or validation of, or filing, recording or registration with, or
exemption by, any foreign or domestic governmental or public body or authority,
or any subdivision thereof, is required to authorize or is required as a
condition to: (i) the execution, delivery and performance by each Credit Party
of any Credit Document to which it is a party; or (ii) the legality, validity,
binding effect or enforceability of any Credit Document to which each Credit
Party is a party.

 

8.6. Litigation. There are no actions, suits or proceedings pending or, to, the
knowledge of the Borrower, threatened with respect to the Borrower or any of its
Subsidiaries: (i) that have, or could reasonably be expected to have, a Material
Adverse Effect; or (ii) that question the validity or enforceability of any of
the Credit Documents, or of any action to be taken by the Credit Parties
pursuant to any of the Credit Documents to which each Credit Party is a party.

 

8.7. Use of Proceeds; Margin Regulations. (a) The proceeds of all Loans shall be
utilized in order to refinance indebtedness of the Borrower, consummate the
Related Transactions, provide working capital and funds for capital expenditures
and other general corporate purposes, consummate Permitted Acquisitions or
obtain Letters of Credit as permitted hereunder.

 

(b) No part of the proceeds of any Loan will be used directly or indirectly to
purchase or carry Margin Stock, or to extend credit to others for the purpose of
purchasing or carrying any Margin Stock, in violation of any of the provisions
of Regulation T, U or X of the Board of Governors of the Federal Reserve System.
The Borrower is not engaged in the business of extending credit for the purpose
of purchasing or carrying any Margin Stock. At no time would more than 25% of
the value of the assets of the Borrower or of the Borrower and its consolidated
Subsidiaries that are subject to any “arrangement” (as such term is used in
section 221.2(g) of such Regulation U) hereunder be represented by Margin Stock.

 

8.8. Financial Statements, etc. (a) The Borrower has furnished to the Lenders
and the Administrative Agent complete and correct copies of (i) the audited
consolidated balance sheets of the Borrower and its consolidated subsidiaries as
of the end of its fiscal year ended on or nearest to December 31, 2002, and the
related audited consolidated statements of income, stockholders’ equity, and
cash flows for the fiscal year then ended, accompanied by the unqualified report
thereon of the Borrower’s independent accountants; (ii) the unaudited condensed
consolidated balance sheets of the Borrower and its consolidated subsidiaries as
of September 30, 2003 and the related unaudited condensed consolidated
statements of income and of cash flows of the Borrower and its consolidated
subsidiaries for the fiscal quarter or quarters then ended, as contained in the
Form 10-Q Quarterly Report of the Borrower filed with the SEC for such fiscal
quarter; and (iii) the unaudited condensed consolidated balance sheets of the

 

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Borrower and its consolidated subsidiaries as of December 31, 2003 and the
related unaudited condensed consolidated statements of income and of cash flows
of the Borrower and its consolidated subsidiaries for the fiscal year then
ended. All such financial statements have been prepared in accordance with GAAP,
consistently applied (except as stated therein), and fairly present the
financial position of the Borrower and its consolidated subsidiaries as of the
respective dates indicated and the consolidated results of their operations and
cash flows for the respective periods indicated, subject in the case of any such
financial statements that are unaudited, to normal audit adjustments, none of
which will involve a Material Adverse Effect.

 

(b) The Borrower has delivered or caused to be delivered to the Lenders prior to
the execution and delivery of this Agreement: (i) a copy of the Borrower’s
Report on Form 10-K as filed (without Exhibits) with the SEC for its fiscal year
ended on or nearest to December 31, 2002, that contains a general description of
the business and affairs of the Borrower and its Subsidiaries; and (ii)
financial projections prepared by management of the Borrower for the Borrower
and its Subsidiaries for the fiscal years 2004-2006 (the “Financial
Projections”). The Financial Projections were prepared on behalf of the Borrower
in good faith after taking into account the existing and historical levels of
business activity of the Borrower and its Subsidiaries, known trends, including
general economic trends, and all other information, assumptions and estimates
considered by management of the Borrower and its Subsidiaries to be pertinent
thereto. The Financial Projections were considered by management of the
Borrower, as of such date of preparation, to be realistically achievable;
provided, that no representation or warranty is made as to the impact of future
general economic conditions or as to whether the Borrower’s projected
consolidated results as set forth in the Financial Projections will actually be
realized. No facts are known to the Borrower at the date hereof that, if
reflected in the Financial Projections, would result in a material adverse
change in the assets, liabilities, results of operations or cash flows reflected
therein.

 

8.9. No Material Adverse Change. Except as reflected in the financial statements
delivered pursuant to section 8.8(a) hereof, since December 31, 2002, there has
been no change in the condition, business or affairs of the Borrower and its
Subsidiaries taken as a whole, or their properties and assets considered as an
entirety, except for changes, none of which, individually or in the aggregate,
has had or could reasonably be expected to have, a Material Adverse Effect.

 

8.10. Tax Returns and Payments. Each of the Borrower and each of its
Subsidiaries has filed all federal income tax returns and all other material tax
returns, domestic and foreign, required to be filed by it and has paid all
material taxes and assessments payable by it that have become due, other than
those not yet delinquent and except for those contested in good faith. The
Borrower and each of its Subsidiaries has established on its books such charges,
accruals and reserves in respect of taxes, assessments, fees and other
governmental charges for all fiscal periods as are required by GAAP. The
Borrower knows of no proposed assessment for additional federal, foreign or
state taxes for any period, or of any basis therefor, that, individually or in
the aggregate, taking into account such charges, accruals and reserves in
respect thereof as the Borrower and its Subsidiaries have made, could reasonably
be expected to have a Material Adverse Effect.

 

8.11. Title to Properties, etc. The Borrower and each of its Subsidiaries has
good and marketable title, in the case of real property, and good title (or
valid Leaseholds, in the case of any leased property), in the case of all other
property, to all of its properties and assets free and clear of Liens other than
Liens permitted by section 10.3. The interests of the Borrower and each of its
Subsidiaries in the properties reflected in the most recent balance sheet
referred to in section 8.8, taken as a whole, were sufficient, in the judgment
of the Borrower, as of the date of such balance sheet for purposes of the
ownership and operation of the businesses conducted by the Borrower and such
Subsidiaries.

 

8.12. Lawful Operations, etc. The Borrower and each of its Subsidiaries: (i)
holds all necessary federal, state and local governmental licenses,
registrations, certifications, permits and

 

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authorizations necessary to conduct its business; and (ii) is in full compliance
with all material requirements imposed by law, regulation or rule, whether
federal, state or local, that are applicable to it, its operations, or its
properties and assets, including without limitation, applicable requirements of
Environmental Laws, except for any failure to obtain and maintain in effect, or
noncompliance, that, individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect.

 

8.13. Environmental Matters. Except as set forth on Annex XI hereto:

 

(a) The Borrower and each of its Subsidiaries is in compliance with all
Environmental Laws governing its business, except to the extent that any such
failure to comply (together with any resulting penalties, fines or forfeitures)
would not reasonably be expected to have a Material Adverse Effect. All
licenses, permits, registrations or approvals required for the conduct of the
business of the Borrower and each of its Subsidiaries under any Environmental
Law have been secured and the Borrower and each of its Subsidiaries is in
substantial compliance therewith, except for such licenses, permits,
registrations or approvals the failure to secure or to comply therewith is not
reasonably likely to have a Material Adverse Effect. Neither the Borrower nor
any of its Subsidiaries has received written notice, or otherwise knows, that it
is in any respect in noncompliance with, breach of or default under any
applicable writ, order, judgment, injunction, or decree to which the Borrower or
such Subsidiary is a party or that would affect the ability of the Borrower or
such Subsidiary to operate any Real Property and no event has occurred and is
continuing that, with the passage of time or the giving of notice or both, would
constitute noncompliance, breach of or default thereunder, except in each such
case, such noncompliance, breaches or defaults as would not reasonably be
expected to, in the aggregate, have a Material Adverse Effect. There are no
Environmental Claims pending or, to the best knowledge of the Borrower,
threatened wherein an unfavorable decision, ruling or finding would reasonably
be expected to have a Material Adverse Effect. There are no facts,
circumstances, conditions or occurrences on any Real Property now or at any time
owned, leased or operated by the Borrower or any of its Subsidiaries or on any
property adjacent to any such Real Property, that are known by the Borrower or
as to which the Borrower or any such Subsidiary has received written notice,
that could reasonably be expected: (i) to form the basis of an Environmental
Claim against the Borrower or any of its Subsidiaries or any Real Property of
the Borrower or any of its Subsidiaries; or (ii) to cause such Real Property to
be subject to any restrictions on the ownership, occupancy, use or
transferability of such Real Property under any Environmental Law, except in
each such case, such Environmental Claims or restrictions that individually or
in the aggregate would not reasonably be expected to have a Material Adverse
Effect.

 

(b) Hazardous Materials have not at any time been: (i) generated, used, treated
or stored on, or transported to or from, any Real Property of the Borrower or
any of its Subsidiaries; or (ii) released on any such Real Property, in each
case where such occurrence or event is not in compliance with Environmental Laws
and is reasonably likely to have a Material Adverse Effect.

 

8.14. Compliance with ERISA. Compliance by the Borrower with the provisions
hereof and Loans contemplated hereby will not involve any prohibited transaction
within the meaning of ERISA or section 4975 of the Code. The Borrower and each
of its Subsidiaries: (i) has fulfilled all obligations under minimum funding
standards of ERISA and the Code with respect to each Plan that is not a
Multiemployer Plan or a Multiple Employer Plan; (ii) has satisfied all
respective contribution obligations in respect of each Multiemployer Plan and
each Multiple Employer Plan; (iii) is in compliance in all material respects
with all other applicable provisions of ERISA and the Code with respect to each
Plan, each Multiemployer Plan and each Multiple Employer Plan; and (iv) has not
incurred any liability under the Title IV of ERISA to the PBGC with respect to
any Plan, any Multiemployer Plan, any Multiple Employer Plan, or any trust
established thereunder, except for PBGC premiums in the ordinary course. No Plan
or trust created thereunder has been terminated, and there have been no
Reportable Events, with respect to any Plan or trust created thereunder or with
respect to any Multiple Employer Plan, which termination or Reportable Event
will or could result in the termination of such Plan or Multiple Employer

 

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Plan and give rise to a material liability of the Borrower or any ERISA
Affiliate in respect thereof. Neither the Borrower nor any ERISA Affiliate is at
the date hereof, or has been at any time within the two years preceding the date
hereof, an employer required to contribute to any Multiemployer Plan or Multiple
Employer Plan, or a “contributing sponsor” (as such term is defined in section
4001 of ERISA) in any Multiemployer Plan or Multiple Employer Plan. Neither the
Borrower nor any ERISA Affiliate has any contingent liability with respect to
any post-retirement “welfare benefit plan” (as such term is defined in ERISA)
except as disclosed on Annex IX hereto.

 

8.15. Intellectual Property, etc. The Borrower and each of its Subsidiaries has
obtained or has the right to use all material patents, trademarks, servicemarks,
trade names, copyrights, licenses and other rights with respect to the foregoing
necessary for the present and planned future conduct of its business, without
any known conflict with the rights of others, except for such patents,
trademarks, servicemarks, trade names, copyrights, licenses and rights, the loss
of which, and such conflicts, that in any such case individually or in the
aggregate would not reasonably be expected to have a Material Adverse Effect.

 

8.16. Investment Company Act, etc. Neither the Borrower nor any of its
Subsidiaries is subject to regulation with respect to the creation or incurrence
of Indebtedness under the Investment Company Act of 1940, as amended, the
Interstate Commerce Act, as amended, the Federal Power Act, as amended, the
Public Utility Holding Company Act of 1935, as amended, or any applicable state
public utility law.

 

8.17. Burdensome Contracts; Labor Relations. Neither the Borrower nor any of its
Subsidiaries: (i) is subject to any burdensome contract, agreement, corporate
restriction, judgment, decree or order; (ii) is a party to any labor dispute
affecting any bargaining unit or other group of employees generally; (iii) is
subject to any material strike, slow down, workout or other concerted
interruptions of operations by employees of the Borrower or any Subsidiary,
whether or not relating to any labor contracts; (iv) is subject to any
significant pending or, to the knowledge of the Borrower, threatened, unfair
labor practice complaint, before the National Labor Relations Board; and (v) is
subject to any significant pending or, to the knowledge of the Borrower,
threatened, grievance or significant arbitration proceeding arising out of or
under any collective bargaining agreement; (vi) is subject to any significant
pending or, to the knowledge of the Borrower, threatened, significant strike,
labor dispute, slowdown or stoppage; or (vii) is, to the knowledge of the
Borrower, involved or subject to any union representation organizing or
certification matter with respect to the employees of the Borrower or any of its
Subsidiaries, except (with respect to any matter specified in any of the above
clauses), for such matters as, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.

 

8.18. Existing Indebtedness. Annex III sets forth a true and complete list, as
of the date or dates set forth therein, of all Indebtedness of the Borrower and
each of its Subsidiaries, on a consolidated basis, that: (i) has an outstanding
principal amount of at least $1,000,000, or may be incurred pursuant to existing
commitments or lines of credit; or (ii) is secured by any Lien on any property
of the Borrower or any Subsidiary, and that will be outstanding on the Closing
Date after giving effect to the initial Borrowing hereunder, other than the
Indebtedness created under the Credit Documents (all such Indebtedness, whether
or not in a principal amount meeting such threshold and required to be so listed
on Annex III, herein the “Existing Indebtedness”). As and to the extent the
Administrative Agent has so requested, the Borrower has provided to the
Administrative Agent prior to the date of execution hereof true and complete
copies (or summary descriptions) of all agreements and instruments governing the
Indebtedness listed on Annex III (the “Existing Indebtedness Agreements”).

 

8.19. True and Complete Disclosure. All factual information (taken as a whole)
heretofore or contemporaneously furnished by or on behalf of the Borrower or any
of its Subsidiaries in writing to the Administrative Agent or any Lender for
purposes of or in connection with this Agreement or any

 

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transaction contemplated herein, other than the Financial Projections (as to
which representations are made only as provided in section 8.8), is, and all
other such factual information (taken as a whole) hereafter furnished by or on
behalf of such person in writing to any Lender will be, true and accurate in all
material respects on the date as of which such information is dated or certified
and not incomplete by omitting to state any material fact necessary to make such
information (taken as a whole) not misleading at such time in light of the
circumstances under which such information was provided, except that any such
future information consisting of financial projections prepared by management of
the Borrower is only represented herein as being based on good faith estimates
and assumptions believed by such persons to be reasonable at the time made, it
being recognized by the Lenders that such projections as to future events are
not to be viewed as facts and that actual results during the period or periods
covered by any such projections may differ materially from the projected
results. As of the Effective Date, there is no fact known to the Borrower or any
of its Subsidiaries that has, or could reasonably be expected to have, a
Material Adverse Effect that has not theretofore been disclosed in writing to
the Lenders.

 

8.20. Insurance. The Borrower and each of its Subsidiaries maintains insurance
coverage by such insurers and in such forms and amounts and against such risks
as are generally consistent with industry standards.

 

SECTION 9. AFFIRMATIVE COVENANTS.

 

The Borrower hereby covenants and agrees that so long as this Agreement is in
effect and until such time as the Total Commitment has been terminated, no Notes
are outstanding and the Loans, together with interest, Fees and all other
Obligations hereunder, have been paid in full:

 

9.1. Reporting Requirements. The Borrower will furnish to each Lender and the
Administrative Agent:

 

(a) Annual Financial Statements. As soon as available and in any event within 90
days after the close of each fiscal year of the Borrower, a Form 10-K, including
the consolidated and consolidating balance sheets of the Borrower and its
consolidated Subsidiaries as at the end of such fiscal year and the related
consolidated statements of income, of stockholder’s equity and of cash flows for
such fiscal year, in each case setting forth comparative figures for the
preceding fiscal year, all in reasonable detail and accompanied by the opinion
with respect to such consolidated financial statements of independent public
accountants of recognized national standing selected by the Borrower, which
opinion shall be unqualified and shall: (i) state that such accountants audited
such consolidated financial statements in accordance with generally accepted
auditing standards, that such accountants believe that such audit provides a
reasonable basis for their opinion, and that in their opinion such consolidated
financial statements present fairly, in all material respects, the consolidated
financial position of the Borrower and its consolidated subsidiaries as at the
end of such fiscal year and the consolidated results of their operations and
cash flows for such fiscal year in conformity with generally accepted accounting
principles; or (ii) contain such statements as are customarily included in
unqualified reports of independent accountants in conformity with the
recommendations and requirements of the American Institute of Certified Public
Accountants (or any successor organization); provided, that the delivery to the
SEC within the time period specified above of the Borrower’s Annual Report on
Form 10-K for such fiscal year (together with the Borrower’s annual report to
shareholders, if any, prepared pursuant to Rule 14a-3 under the 1934 Act)
prepared in accordance with the requirements therefor and filed with the SEC
shall be deemed to satisfy the requirements of this section 9.1(a) so long as a
copy thereof is forwarded to the Administrative Agent by the Borrower promptly
upon completion.

 

(b) Quarterly Financial Statements. For the first three quarters of each fiscal
year, as soon as available and in any event within 45 days after the close of
each of the applicable quarterly accounting periods in each fiscal year of the
Borrower, a Form 10-Q, together with the unaudited consolidated and

 

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consolidating balance sheets of the Borrower and its consolidated Subsidiaries
as at the end of such quarterly period and the related unaudited condensed
consolidated statements of income and of cash flows for such quarterly period,
and setting forth, in the case of such unaudited consolidated statements of
income and of cash flows, comparative figures for the related periods in the
prior fiscal year; provided, that the delivery to the SEC within the time period
specified above of the Borrower’s 10-Q for such fiscal quarter prepared in
accordance with the requirements therefor and filed with the SEC shall be deemed
to satisfy the requirements of this section 9.1(b) so long as a copy thereof is
forwarded to the Administrative Agent by the Borrower promptly upon completion.

 

(c) Officer’s Compliance Certificates. At the time of the delivery of the
financial statements provided for in sections 9.1(a) and (b), a certificate on
behalf of the Borrower of the Chief Financial Officer, Chief Executive Officer
or President of the Borrower to the effect that, to the best knowledge of the
Borrower, no Default or Event of Default exists or, if any Default or Event of
Default does exist, specifying the nature and extent thereof, which certificate
shall set forth the calculations required to establish compliance with the
provisions of sections 10.4(c), 10.5 and 10.6 through 10.10, inclusive of this
Agreement, including an identification of the amounts of any financial items of
persons or business units acquired by the Borrower for any periods prior to the
date of acquisition that are used in making such calculations.

 

(d) Budgets and Forecasts. Not later than 45 days after the commencement of each
fiscal year of the Borrower, a consolidated budget in reasonable detail for such
entire fiscal year and for each of the fiscal quarters in such fiscal year, and
(if and to the extent prepared by management of the Borrower) for any subsequent
fiscal years, as customarily prepared by management for its internal use,
setting forth, with appropriate discussion, the forecasted balance sheet, income
statement, operating cash flows and capital expenditures of the Borrower and its
Subsidiaries for the period or periods covered thereby, and the principal
assumptions upon which forecasts and budget are based.

 

(e) Auditors’ Internal Control Comment Letters, etc. Promptly upon receipt
thereof, notice to the Administrative Agent thereof, and upon request by the
Administrative Agent, a copy of each letter or memorandum commenting on internal
accounting controls and/or accounting or financial reporting policies followed
by the Borrower and/or any of its Subsidiaries, that is submitted to the
Borrower by its independent accountants in connection with any annual or interim
audit made by them of the books of the Borrower or any of its Subsidiaries.

 

(f) Notice of Default or Litigation. Promptly, and in any event within three
Business Days, in the case of clause (i) below, or five Business Days, in the
case of clause (ii) below, after the Borrower or any of its Subsidiaries obtains
knowledge thereof, notice of:

 

(i) the occurrence of any event that constitutes a Default or Event of Default,
which notice shall specify the nature thereof, the period of existence thereof
and what action the Borrower proposes to take with respect thereto; and

 

(ii) any litigation or governmental or regulatory investigation or proceeding
pending against or involving the Borrower or any of its Subsidiaries that could
reasonably be expected to have a Material Adverse Effect.

 

(g) ERISA. Promptly, and in any event within 10 days after the Borrower, any
Subsidiary of the Borrower or any ERISA Affiliate knows of the occurrence of any
of the following, the Borrower will deliver to each of the Lenders a certificate
on behalf of the Borrower of an Authorized Officer of the Borrower setting forth
the full details as to such occurrence and the action, if any, that the
Borrower, such Subsidiary or such ERISA Affiliate is required or proposes to
take, together with any notices required or

 

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proposed to be given to or filed with or by the Borrower, the Subsidiary, the
ERISA Affiliate, the PBGC, a Plan participant or the Plan administrator with
respect thereto:

 

(i) that a Reportable Event has occurred with respect to any Plan;

 

(ii) the institution of any steps by the Borrower, any ERISA Affiliate, the PBGC
or any other person to terminate any Plan;

 

(iii) the institution of any steps by the Borrower or any ERISA Affiliate to
withdraw from any Plan;

 

(iv) the institution of any steps by the Borrower or any Subsidiary to withdraw
from any Multiemployer Plan or Multiple Employer Plan, if such withdrawal could
result in withdrawal liability (as described in Part 1 of Subtitle E of Title IV
of ERISA) in excess of $5,000,000;

 

(v) a non-exempt “prohibited transaction” within the meaning of section 406 of
ERISA in connection with any Plan;

 

(vi) that a Plan has an Unfunded Current Liability exceeding $40,000,000;

 

(vii) any material increase in the contingent liability of the Borrower or any
Subsidiary with respect to any post-retirement welfare liability; or

 

(viii) the taking of any action by, or the threatening of the taking of any
action by, the Internal Revenue Service, the Department of Labor or the PBGC
with respect to any of the foregoing.

 

(h) Environmental Matters. Promptly upon, and in any event within 10 Business
Days after, an officer of the Borrower obtains actual knowledge thereof, notice
of any of the following environmental matters that involves any reasonable
likelihood (in the Borrower’s reasonable judgment) of resulting in a Material
Adverse Effect: (i) any pending or threatened (in writing) Environmental Claim
against the Borrower or any of its Subsidiaries or any Real Property owned or
operated by the Borrower or any of its Subsidiaries; (ii) any condition or
occurrence on or arising from any Real Property owned or operated by the
Borrower or any of its Subsidiaries that (A) results in noncompliance by the
Borrower or any of its Subsidiaries with any applicable Environmental Law or (B)
would reasonably be expected to form the basis of an Environmental Claim against
the Borrower or any of its Subsidiaries or any such Real Property; (iii) any
condition or occurrence on any Real Property owned, leased or operated by the
Borrower or any of its Subsidiaries that could reasonably be expected to cause
such Real Property to be subject to any restrictions on the ownership,
occupancy, use or transferability by the Borrower or any of its Subsidiaries of
such Real Property under any Environmental Law; and (iv) the taking of any
removal or remedial action in response to the actual or alleged presence of any
Hazardous Material on any Real Property owned, leased or operated by the
Borrower or any of its Subsidiaries as required by any Environmental Law or any
governmental or other administrative agency. All such notices shall describe in
reasonable detail the nature of the Environmental Claim and the Borrower’s or
such Subsidiary’s response thereto.

 

(i) SEC Reports and Registration Statements. Promptly upon transmission thereof
or other filing with the SEC, copies of all registration statements (other than
the exhibits thereto and any registration statement on Form S-8 or its
equivalent) and annual, quarterly or current reports that the Borrower or any of
its Subsidiaries files with the SEC.

 

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(j) Other Information. With reasonable promptness, such other information or
documents (financial or otherwise) relating to the Borrower or any of its
Subsidiaries as any Lender may reasonably request from time to time.

 

9.2. Books, Records and Inspections. The Borrower will, and will cause each of
its Subsidiaries to: (i) keep proper books of record and account, in which full
and correct entries shall be made of all financial transactions and the assets
and business of the Borrower or such Subsidiaries, as the case may be, in
accordance with GAAP, in the case of the Borrower, or that are reconcilable to a
GAAP presentation, in the case of any Subsidiary; and (ii) permit, upon at least
five Business Days’ notice to the Chief Financial Officer or any other
Authorized Officer of the Borrower, officers and designated representatives of
the Administrative Agent or any of the Lenders to visit and inspect any of the
properties or assets of the Borrower and any of its Subsidiaries in whomsoever’s
possession (but only to the extent the Borrower or such Subsidiary has the right
to do so to the extent in the possession of another person), and to examine (and
make copies of or take extracts from) the books of account of the Borrower and
any of its Subsidiaries and discuss the affairs, finances and accounts of the
Borrower and of any of its Subsidiaries with, and be advised as to the same by,
its and their officers and independent accountants and independent actuaries, if
any, all at such reasonable times and intervals and to such reasonable extent as
the Administrative Agent or any of the Lenders may request.

 

9.3. Insurance. The Borrower will, and will cause each of its Subsidiaries to:
(i) maintain insurance coverage by such insurers and in such forms and amounts
and against such risks as are generally consistent with the insurance coverage
maintained by the Borrower and its Subsidiaries at the date hereof and as may be
required pursuant to the terms of any other Credit Document; and (ii) forthwith
upon any Lender’s written request, furnish to such Lender such information about
such insurance as such Lender may from time to time reasonably request, which
information shall be prepared in form and detail satisfactory to such Lender and
certified by an Authorized Officer of the Borrower.

 

9.4. Payment of Taxes and Claims. The Borrower will pay and discharge, and will
cause each of its Subsidiaries to pay and discharge, all taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits, or
upon any properties belonging to it, prior to the date on which penalties attach
thereto, and all lawful claims that, if unpaid, might become a Lien or charge
upon any properties of the Borrower or any of its Subsidiaries; provided that
neither the Borrower nor any of its Subsidiaries shall be required to pay any
such tax, assessment, charge, levy or claim that is being contested in good
faith and by proper proceedings if it has maintained adequate reserves with
respect thereto in accordance with GAAP; and provided, further, that the
Borrower will not be considered to be in default of any of the provisions of
this sentence if the Borrower or any Subsidiary fails to pay any such amount
that, individually or in the aggregate, is immaterial to the Borrower and its
Subsidiaries considered as an entirety.

 

9.5. Corporate Franchises. The Borrower will do, and will cause each of its
Subsidiaries to do, or cause to be done, all things necessary to preserve and
keep in full force and effect its corporate or other organizational existence,
rights, authority and franchises, provided that nothing in this section 9.5
shall be deemed to prohibit: (i) any transaction permitted by section 10.2; (ii)
the termination of existence of any Subsidiary if (A) the Borrower determines
that such termination is in its best interest and (B) such termination is not
adverse in any material respect to the Lenders; or (iii) the loss of any rights,
authorities or franchises if the loss thereof, in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.

 

9.6. Good Repair. The Borrower will, and will cause each of its Subsidiaries to,
ensure that its material properties and equipment used or useful in its business
in whomsoever’s possession they may be, are kept in good repair, working order
and condition, normal wear and tear excepted, and that from time to time there
are made in such properties and equipment all needful and proper repairs,
renewals,

 

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replacements, extensions, additions, betterments and improvements, thereto, to
the extent and in the manner customary for companies in similar businesses.

 

9.7. Compliance with Statutes, etc. The Borrower will, and will cause each of
its Subsidiaries to, comply, in all material respects, with all applicable
statutes, regulations and orders of, and all applicable restrictions imposed by,
all governmental bodies, domestic or foreign, in respect of the conduct of its
business and the ownership of its property, other than those: (i) being
contested in good faith by appropriate proceedings, as to which adequate
reserves are established to the extent required under GAAP; and (ii) the
noncompliance with which would not have, and that would not be reasonably
expected to have, a Material Adverse Effect.

 

9.8. Compliance with Environmental Laws. Without limitation of the covenants
contained in section 9.7 hereof:

 

(a) The Borrower will, and will cause each of its Subsidiaries to: (i) comply,
in all material respects, with all Environmental Laws applicable to the
ownership, lease or use of all Real Property now or hereafter owned, leased or
operated by the Borrower or any of its Subsidiaries, and promptly pay or cause
to be paid all costs and expenses incurred in connection with such compliance,
except for such noncompliance as would not have, and that would not be
reasonably expected to have, a Material Adverse Effect; and (ii) keep or cause
to be kept all such Real Property free and clear of any Liens imposed pursuant
to such Environmental Laws that are not permitted under section 10.3.

 

(b) Without limitation of the foregoing, if the Borrower or any of its
Subsidiaries shall generate, use, treat, store, release or dispose of, or permit
the generation, use, treatment, storage, release or disposal of, Hazardous
Materials on any Real Property now or hereafter owned, leased or operated by the
Borrower or any of its Subsidiaries, or transport or permit the transportation
of Hazardous Materials to or from any such Real Property, any such action shall
be effected only in the ordinary course of business and in any event in
compliance, in all material respects, with all Environmental Laws applicable
thereto, except for such noncompliance as would not have, and that would not be
reasonably expected to have, a Material Adverse Effect.

 

(c) If required to do so under any applicable order of any governmental agency,
the Borrower will undertake, and cause each of its Subsidiaries to undertake,
any clean up, removal, remedial or other action necessary to remove and clean up
any Hazardous Materials from any Real Property owned, leased or operated by the
Borrower or any of its Subsidiaries in accordance with, in all material
respects, the requirements of all applicable Environmental Laws and in
accordance with, in all material respects, such orders of all governmental
authorities, except. (i) to the extent that the Borrower or such Subsidiary is
contesting such order in good faith and by appropriate proceedings and for which
adequate reserves have been established to the extent required by GAAP; or (ii)
for such noncompliance as would not have, and that would not be reasonably
expected to have, a Material Adverse Effect.

 

9.9. Fiscal Years, Fiscal Quarters. If the Borrower shall change any of its or
any of its Subsidiaries’ fiscal years or fiscal quarters (other than the fiscal
year or fiscal quarters of a person that becomes a Subsidiary, made at the time
such person becomes a Subsidiary to conform to the Borrower’s fiscal year and
fiscal quarters), the Borrower will promptly, and in any event within 30 days
following any such change, deliver a notice to the Administrative Agent and the
Lenders describing such change and any material accounting entries made in
connection therewith and stating whether such change will have any impact upon
any financial computations to be made hereunder, and if any such impact is
foreseen, describing in reasonable detail the nature and extent of such impact.
If the Required Lenders determine that any such change will have any impact upon
any financial computations to be made hereunder that is adverse to the Lenders,
the Borrower will, if so requested by the Administrative Agent, enter into an
amendment to this Agreement, in form and substance reasonably satisfactory to
the

 

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Administrative Agent and the Required Lenders, modifying any of the financial
covenants or related provisions hereof in such manner as the Required Lenders
determine is necessary to eliminate such adverse effect.

 

9.10. Hedge Agreements, etc. In the event the Borrower or any of its
Subsidiaries determines to enter into a Hedge Agreement it may do so with any
Non-Defaulting Lender or any other institution reasonably acceptable to the
Administrative Agent, provided that the purpose of such Hedge Agreement is to
provide protection to the Borrower or any such Subsidiary from fluctuations and
other changes in interest rates and currency exchange rates, as and to the
extent considered reasonably necessary by the Borrower, but without exposing the
Borrower or its Subsidiaries to predominantly speculative risks unrelated to the
amount of assets, Indebtedness or other liabilities intended to be subject to
coverage on a notional basis under all such Hedge Agreements.

 

9.11. Most Favored Covenant Status. Should the Borrower at any time after the
Effective Date, issue or guarantee any unsecured Indebtedness denominated in
U.S. dollars for money borrowed or represented by bonds, notes, debentures or
similar securities in an aggregate amount exceeding $2,500,000, to any lender or
group of lenders acting in concert with one another, or one or more
institutional investors, pursuant to a loan agreement, credit agreement, note
purchase agreement, indenture, guaranty or other similar instrument, which
agreement, indenture, guaranty or instrument, includes affirmative or negative
business or financial covenants (or any events of default or other type of
restriction that would have the practical effect of any affirmative or negative
business or financial covenant, including, without limitation, any “put” or
mandatory prepayment of such Indebtedness upon the occurrence of a “change of
control”) that are applicable to the Borrower, other than those set forth herein
or in any of the other Credit Documents, the Borrower shall promptly so notify
the Administrative Agent and the Lenders and, if the Administrative Agent shall
so request by written notice to the Borrower (after a determination has been
made by the Required Lenders that any of the above-referenced documents or
instruments contain any such provisions, that either individually or in the
aggregate, are more favorable to the holders of such unsecured Indebtedness than
any of the provisions set forth herein), the Borrower, the Administrative Agent
and the Lenders shall promptly amend this Agreement to incorporate some or all
of such provisions, in the discretion of the Administrative Agent and the
Required Lenders, into this Agreement and, to the extent necessary and
reasonably desirable to the Administrative Agent and the Required Lenders, into
any of the other Credit Documents, all at the election of the Administrative
Agent and the Required Lenders. Except with respect to those documents set forth
on Annex X hereto, the Borrower covenants and agrees that no later than 30 days
after the date hereof, the Borrower shall have caused any document relating to
any Indebtedness that would violate the provisions of this section 9.11 to be:
(a) amended so that such document no longer violates the provisions of this
section 9.11, provided that any such amendment shall be reasonably satisfactory
to the Administrative Agent; or (b) terminated.

 

9.12. Senior Debt. The Borrower will at all times ensure that: (a) the claims of
the Lenders in respect of the Obligations of the Credit Parties will not be
subordinate to, and will in all respects at least rank pari passu with, the
claims of every other senior unsecured creditor of the Credit Parties; and (b)
any Indebtedness subordinated in any manner to the claims of any other senior
unsecured creditor of the Credit Parties will be subordinated in like manner to
such claims of the Lenders.

 

9.13. Certain Subsidiaries to Join in Subsidiary Guaranty. (a) In the event that
at any time after the Closing Date

 

(x) the Borrower has any Subsidiary (other than a Subsidiary that is a
Non-Material Subsidiary and other than a Foreign Subsidiary as to which section
9.13(b) applies) that is not a party to the Subsidiary Guaranty, or

 

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(y) an Event of Default shall have occurred and be continuing and the Borrower
has any Subsidiary that is not a party to the Subsidiary Guaranty,

 

the Borrower will notify the Administrative Agent in writing of such event,
identifying the Subsidiary in question and referring specifically to the rights
of the Administrative Agent and the Lenders under this section. The Borrower
will, within 30 days following request therefor from the Administrative Agent
(who may give such request on its own initiative or upon request by the Required
Lenders), cause such Subsidiary to deliver to the Administrative Agent, in
sufficient quantities for the Lenders, (i) a joinder supplement, reasonably
satisfactory in form and substance to the Administrative Agent and the Required
Lenders, duly executed by such Subsidiary, pursuant to which such Subsidiary
joins in the Subsidiary Guaranty as a guarantor thereunder, and (ii) resolutions
of the Board of Directors (or similar governing body) of such Subsidiary,
certified by the Secretary or an Assistant Secretary of such Subsidiary as duly
adopted and in full force and effect, authorizing the execution and delivery of
such joinder supplement, or if such Subsidiary is not a corporation, such other
evidence of the authority of such Subsidiary to execute such joinder supplement
as the Administrative Agent may reasonably request.

 

(b) Notwithstanding the foregoing provisions of this section 9.13 or the
provisions of any other Credit Document, the Borrower shall not, unless an Event
of Default shall have occurred and be continuing, be required to cause a Foreign
Subsidiary to join in the Subsidiary Guaranty or to become a party to any other
Credit Document.

 

SECTION 10. NEGATIVE COVENANTS.

 

The Borrower hereby covenants and agrees that on the Effective Date and
thereafter for so long as this Agreement is in effect and until such time as the
Total Commitment has been terminated, no Notes remain outstanding and the Loans,
together with interest, Fees and all other Obligations incurred hereunder, have
been paid in full:

 

10.1. Changes in Business. Neither the Borrower nor any of its Subsidiaries will
engage in any business if, as a result, the general nature of the business,
taken on a consolidated basis, that would then be engaged in by the Borrower and
its Subsidiaries, would be substantially changed from the business engaged in by
the Borrower and its Subsidiaries on the date hereof.

 

10.2. Consolidation, Merger, Acquisitions, Asset Sales, etc. Each of the
Borrower and each other Credit Party will not, and will not permit any
Subsidiary to, (1) wind up, liquidate or dissolve its affairs, (2) enter into
any transaction of merger or consolidation, (3) make or otherwise effect any
Acquisition (other than the Related Transactions), (4) sell or otherwise dispose
of any of its property or assets outside the ordinary course of business, or
otherwise make or otherwise effect any Asset Sale, or (5) agree to do any of the
foregoing at any future time, except that the following shall be permitted:

 

(a) Certain Intercompany Mergers, etc. If no Default or Event of Default shall
have occurred and be continuing or would result therefrom:

 

(i) the merger, consolidation or amalgamation of any Subsidiary of the Borrower
with or into the Borrower, provided the Borrower is the surviving or continuing
or resulting corporation;

 

(ii) the merger, consolidation or amalgamation of any Subsidiary of the Borrower
with or into another Subsidiary of the Borrower, provided that the surviving or
continuing or resulting corporation is a Wholly-Owned Subsidiary of the Borrower
and provided, further, that a party to such merger, consolidation or
amalgamation is a Subsidiary Guarantor, the surviving or continuing or resulting
corporation is a Subsidiary Guarantor;

 

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(iii) the liquidation, winding up or dissolution of any Subsidiary of the
Borrower; and

 

(iv) the transfer or other disposition of any property by the Borrower to any
Wholly-Owned Subsidiary or by any Subsidiary to the Borrower or any other
Wholly-Owned Subsidiary of the Borrower;

 

shall each be permitted, if after giving effect thereto at least 60% of the
Consolidated Total Assets (exclusive of intercompany items) of the Borrower are
owned directly by the Borrower and the other Credit Parties and not indirectly
through Subsidiaries that are not Credit Parties.

 

(b) Other Mergers, etc. Involving the Credit Parties. Any Credit Party may
consolidate or merge with any other corporation, or sell, transfer or otherwise
dispose of all or substantially all of the property and assets of such Credit
Party to any person, if : (i) the surviving, continuing or resulting corporation
of such merger or consolidation (if other than such Credit Party) or the
acquiring person unconditionally assumes the obligations of such Credit Party
under the Credit Documents pursuant to an assumption agreement in form and
substance reasonably satisfactory to the Required Lenders; (ii) no Event of
Default has occurred and is continuing or would result therefrom; (iii) no
Change of Control would be occasioned thereby; and (iv) if any such merger or
consolidation is entered into for the purpose of effecting an Acquisition, such
Acquisition is permitted by section 10.2(c).

 

(c) Acquisitions. If no Default or Event of Default shall have occurred and be
continuing or would result therefrom, the Borrower or any Subsidiary may make
any Acquisition that is a Permitted Acquisition, provided that all of the
conditions contained in the definition of the term Permitted Acquisition are
satisfied.

 

(d) Permitted Dispositions. If no Default or Event of Default shall have
occurred and be continuing or would result therefrom, the Borrower or any of its
Subsidiaries may: (i) consummate any Permitted Disposition; (ii) sell any
property, land or building (including any related receivables or other
intangible assets) to any person that is not a Subsidiary of the Borrower; (iii)
sell the entire capital stock (or other equity interests) and Indebtedness of
any Subsidiary owned by the Borrower or any other Subsidiary to any person that
is not a Subsidiary of the Borrower; (iv) permit any Subsidiary to be merged or
consolidated with a person that is not an Affiliate of the Borrower; or (v)
consummate any other Asset Sale with a person who is not a Subsidiary of the
Borrower; provided that:

 

(A) the consideration for such transaction (excluding the Permitted
Dispositions) represents fair value (as determined by management of the
Borrower), and at least 90% of such consideration consists of cash;

 

(B) the cumulative aggregate consideration for all such transactions (excluding
the Permitted Dispositions) completed during any fiscal year does not exceed
$7,500,000;

 

(C) in the case of any such transaction involving consideration in excess of
$1,500,000, at least five Business Days prior to the date of completion of such
transaction the Borrower shall have delivered to the Administrative Agent an
officer’s certificate executed on behalf of the Borrower by an Authorized
Officer of the Borrower, which certificate shall contain: (1) a description of
the proposed transaction, the date such transaction is scheduled to be
consummated, the estimated purchase price or other consideration for such
transaction; (2) a certification that the Borrower would, after giving effect to
such transaction, be in compliance, on a pro forma basis, with the financial
covenants contained in sections 10.7, 10.8, 10.9 and 10.10, such pro forma
ratios being determined as if such transaction had been completed at the
beginning of the most recent period of four consecutive fiscal quarters of the
Borrower; (3) a certification that no Default or Event of Default has occurred
and is continuing, or would result

 

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from consummation of such transaction; and (4) if requested by the
Administrative Agent, a certified copy of the draft or definitive documentation
pertaining thereto;

 

(D) contemporaneously with the completion of such transaction the Borrower
prepays its Loans as and to the extent required by section 6.2 hereof; and

 

provided, further, that sales or other dispositions of obsolete, worn out or
surplus equipment or fixtures may be effected at any time in the ordinary course
of business without compliance with the above provisions and the amount of any
such sales or other dispositions shall be excluded from any computations under
this section 10.2(d).

 

(e) Leases. The Borrower or any of its Subsidiaries may enter into leases of
property or assets not constituting Acquisitions, provided that such leases are
not otherwise in violation of this Agreement.

 

(f) Capital Expenditures. The Borrower and it Subsidiaries shall be permitted to
make Consolidated Capital Expenditures associated with the reactivation of the
Gulf Coast facility located in DeQuincy, Louisiana in an cumulative aggregate
amount not to exceed $22,500,000, plus Consolidated Capital Expenditures in any
fiscal year in amount not to exceed $20,000,000 (excluding any Consolidated
Capital Expenditures made with the Net Cash Proceeds from any Event of Loss to
the extent used to repair, rebuild or replace such assets with assets similar to
those assets that were the subject of such Event of Loss); provided that in no
event shall the sum of all Consolidated Capital Expenditures made by the
Borrower and its Subsidiaries exceed $30,000,000 in any fiscal year.

 

(g) Permitted Investments. The Borrower and it Subsidiaries shall be permitted
to make the investments permitted pursuant to section 10.5.

 

10.3. Liens. The Borrower will not, and will not permit any of its Subsidiaries
to, create, incur, assume or suffer to exist any Lien upon or with respect to
any property or assets of any kind (real or personal, tangible or intangible) of
the Borrower or any such Subsidiary whether now owned or hereafter acquired, or
sell any such property or assets subject to an understanding or agreement,
contingent or otherwise, to repurchase such property or assets (including sales
of accounts receivable or notes with or without recourse to the Borrower or any
of its Subsidiaries, other than for purposes of collection of delinquent
accounts in the ordinary course of business) or assign any right to receive
income, or file or permit the filing of any financing statement under the UCC or
any other similar notice of Lien under any similar recording or notice statute,
except that the foregoing restrictions shall not apply to:

 

(a) Standard Permitted Liens: the Standard Permitted Liens;

 

(b) Existing Liens, etc.: Liens: (i) in existence on the Effective Date that are
listed, and the Indebtedness secured thereby and the property subject thereto on
the Effective Date described, in Annex IV; or (ii) arising out of the
refinancing, extension, renewal or refunding of any Indebtedness secured by any
such Liens, provided that the principal amount of such Indebtedness is not
increased and such Indebtedness is not secured by any additional assets;

 

(c) Purchase Money Liens: Liens: (i) that are placed upon fixed or capital
assets, acquired, constructed or improved by the Borrower or any Subsidiary,
provided that (A) such Liens secure Indebtedness permitted by section 10.4(c),
(B) such Liens and the Indebtedness secured thereby are incurred prior to or
within 90 days after such acquisition or the completion of such construction or
improvement, (C) the Indebtedness secured thereby does not exceed 100% of the
cost of acquiring, constructing or improving such fixed or capital assets and
(D) such Liens shall not apply to any other property or assets of the Borrower
or any Subsidiary; or (ii) arising out of the refinancing, extension,

 

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renewal or refunding of any Indebtedness secured by any such Liens, provided
that the principal amount of such Indebtedness is not increased and such
Indebtedness is not secured by any additional assets; and

 

(d) Liens on Acquired Properties: any Lien: (i) existing on any property or
asset prior to the acquisition thereof by the Borrower or any Subsidiary, or
existing on any property or asset of any person that becomes a Subsidiary after
the date hereof prior to the time such person becomes a Subsidiary; provided
that (A) such Lien secures Indebtedness permitted by section 10.4(c), (B) such
Lien is not created in contemplation of or in connection with such acquisition
or such person becoming a Subsidiary, as the case may be, (C) such Lien shall
not attach or apply to any other property or assets of the Borrower or any
Subsidiary, and (D) such Lien shall secure only those obligations that it
secures on the date of such acquisition or the date such person becomes a
Subsidiary, as the case may be; or (ii) arising out of the refinancing,
extension, renewal or refunding of any Indebtedness secured by any such Liens,
provided that the principal amount of such Indebtedness is not increased and
such Indebtedness is not secured by any additional assets.

 

10.4. Indebtedness. The Borrower will not, and will not permit any of its
Subsidiaries to, contract, create, incur, assume or suffer to exist any
Indebtedness of the Borrower or any of its Subsidiaries, except:

 

(a) Credit Documents: Indebtedness incurred under this Agreement and the other
Credit Documents;

 

(b) Existing Indebtedness: Existing Indebtedness and any refinancing, extension,
renewal or refunding of any such Existing Indebtedness not involving an increase
in the principal amount thereof or a reduction in the remaining weighted average
life to maturity thereof (computed in accordance with standard financial
practice);

 

(c) Certain Priority Debt: to the extent not permitted by the foregoing clauses:

 

(i) Indebtedness consisting of Capital Lease Obligations of the Borrower and its
Subsidiaries;

 

(ii) Indebtedness consisting of obligations under Synthetic Leases of the
Borrower and its Subsidiaries;

 

(iii) Indebtedness secured by a Lien referred to in section 10.3(c) or 10.3(d);
and

 

(iv) any refinancing, extension, renewal or refunding of any such Indebtedness
not involving an increase in the principal amount thereof or a reduction in the
remaining weighted average life to maturity thereof (computed in accordance with
standard financial practice);

 

provided that: (A) at the time of any incurrence thereof after the date hereof,
and after giving effect thereto, the Borrower would be in compliance with
sections 10.7 and 10.8, and no Event of Default shall have occurred and be
continuing or would result therefrom; and (B) the aggregate outstanding
principal amount (using Capitalized Lease Obligations in lieu of principal
amount, in the case of any Capital Lease, and using the present value, based on
the implicit interest rate, in lieu of principal amount, in the case of any
Synthetic Lease) of Indebtedness permitted by this clause (c), when taken
together with any outstanding Indebtedness permitted by clause (b) above that is
represented by a Capital Lease or a Synthetic Lease or that is secured by any
Lien referred to in section 10.3(c) or (d), shall not exceed $5,000,000 at any
time;

 

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(d) Intercompany Debt: the following: (i) unsecured Indebtedness of the Borrower
owed to any of its Subsidiaries, provided such Indebtedness constitutes
Subordinated Indebtedness; and (ii) unsecured Indebtedness of any of the
Borrower’s Subsidiaries to the Borrower or to another Subsidiary of the
Borrower, provided that in the case of this subclause (ii), after giving effect
thereto, at least 60% of the Consolidated Total Assets (exclusive of
intercompany items) of the Borrower and the other Credit Parties are owned
directly by the Borrower and the other Credit Parties and not indirectly through
Subsidiaries that are not Credit Parties;

 

(e) Hedge Agreements: Indebtedness of the Borrower and its Subsidiaries under
Hedge Agreements;

 

(f) Guaranty Obligations: any Guaranty Obligations permitted by section 10.5;

 

(g) Additional Unsecured Debt of the Borrower: additional unsecured Indebtedness
of the Borrower, whether pursuant to any sale or issuance of debt securities by
the Borrower in a Rule 144A offering, a private placement, or a term loan
facility, not in excess of $25,000,000 aggregate principal amount outstanding at
any time, and subject to section 9.12, provided that at the time of incurrence
thereof, and after giving effect thereto, (i) the Borrower would be in
compliance with section 10.7, and (ii) no Event of Default shall have occurred
and be continuing or would result therefrom.

 

10.5. Advances, Investments, Loans and Guaranty Obligations. The Borrower will
not, and will not permit any of its Subsidiaries to: (i) lend money or credit or
make advances to any person; (ii) purchase or acquire any stock, obligations or
securities of, or any other interest in, or make any capital contribution to, or
other investment in, any person; (iii) create, acquire or hold any Subsidiary;
(iv) be or become a party to any joint venture, member of a limited liability
company or partner of a partnership; or (v) be or become obligated under any
Guaranty Obligations (other than those created in favor of the Lenders pursuant
to the Credit Documents), except:

 

(a) the Borrower or any of its Subsidiaries may invest in cash and Cash
Equivalents;

 

(b) any endorsement of a check or other medium of payment for deposit or
collection, or any similar transaction in the normal course of business;

 

(c) the Borrower and its Subsidiaries may acquire and hold receivables owing to
them in the ordinary course of business and payable or dischargeable in
accordance with customary trade terms;

 

(d) investments acquired by the Borrower or any of its Subsidiaries: (i) in
exchange for any other investment held by the Borrower or any such Subsidiary in
connection with or as a result of a bankruptcy, workout, reorganization or
recapitalization of the issuer of such other investment; or (ii) as a result of
a foreclosure by the Borrower or any of its Subsidiaries with respect to any
secured investment or other transfer of title with respect to any secured
investment in default;

 

(e) loans and advances to employees for business-related travel expenses, moving
expenses, costs of replacement homes, business machines or supplies, automobiles
and other similar expenses, in each case incurred in the ordinary course of
business, shall be permitted;

 

(f) to the extent not permitted by the foregoing clauses, the existing loans,
advances, investments and guarantees described on Annex V hereto;

 

(g) investments of the Borrower and its Subsidiaries in Hedge Agreements;

 

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(h) existing investments in any Subsidiaries and any additional investments in
any Wholly-Owned Subsidiary permitted by section 10.2(a);

 

(i) intercompany loans and advances permitted by section 10.4(d);

 

(j) the Acquisitions permitted by section 10.2 and loans, advances and
investments of any person that are outstanding at the time such person becomes a
Subsidiary of the Borrower as a result of an Acquisition permitted by section
10.2, but not any increase in the amount thereof;

 

(k) any unsecured Guaranty Obligation incurred by the Borrower or any Subsidiary
with respect to (i) Indebtedness of a Wholly-Owned Subsidiary of the Borrower
that is permitted under section 10.4 without restriction upon the ability of the
Borrower or any Subsidiary to guarantee the same, or (ii) other obligations of a
Wholly-Owned Subsidiary of the Borrower that are not prohibited by this
Agreement;

 

(l) any other loans, advances, investments (whether in the form of cash or
contribution of property, and if in the form of a contribution of property, such
property shall be valued for purposes of this clause at the fair value thereof
as reasonably determined by the Borrower), in or to any corporation,
partnership, limited liability company, joint venture or other business entity,
not otherwise permitted by the foregoing clauses (such loans, advances and
investments, collectively, “Basket Investments”), provided that (i) at the time
of making any such Basket Investment no Event of Default shall have occurred and
be continuing, or would result therefrom, and (ii) the maximum cumulative amount
of Basket Investments that are so made and outstanding at any time, taking into
account the repayment of any loans or advances comprising such Basket
Investments, shall not exceed an aggregate of $5,000,000 (exclusive of any
accreted value).

 

10.6. Dividends, etc. The Borrower will not: (i) directly or indirectly declare,
order, pay or make any dividend (other than dividends payable solely in capital
stock of the Borrower) or other distribution on or in respect of any capital
stock of any class of the Borrower, whether by reduction of capital or
otherwise; or (ii) directly or indirectly make, or permit any of its
Subsidiaries to directly or indirectly make, any purchase, redemption,
retirement or other acquisition of (x) any capital stock of any class of the
Borrower (other than for a consideration consisting solely of capital stock of
the same class of the Borrower), or (y) any warrants, rights or options to
acquire or any securities convertible into or exchangeable for any capital stock
of the Borrower, except that the Borrower may make any purchase, redemption,
retirement or other acquisition of its capital stock or make cash payments in
respect of dividends on its common stock if:

 

(a) no Default under section 11.1(a) or Event of Default shall have occurred and
be continuing at the time of declaration or payment thereof;

 

(b) after giving effect thereto the Borrower will be in compliance, on a pro
forma basis, with sections 10.8, 10.9 and 10.10;

 

(c) with respect to any purchase, redemption, retirement or other acquisition of
its capital stock, at the time of making any such purchase, redemption,
retirement or other acquisition and after giving effect thereto, the cumulative
aggregate amount does not exceed $10,000,000 over the life of this Agreement;
and

 

(d) with respect to dividends, at the time of making any such dividend and after
giving effect thereto, the cumulative aggregate amount of dividends paid and
declared in any period of 12 consecutive months does not exceed $8,000,000.

 

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10.7. Asset Coverage Percentage. The Borrower will not at any time permit the
sum of (a) 85% of Eligible Accounts Receivable plus (b) 50% of Eligible
Inventory plus (c) 50% of Eligible PP&E to be less than 125% of Consolidated
Total Debt.

 

10.8. Ratio of Consolidated Total Debt to Consolidated EBITDA. The Borrower will
not at any time permit the ratio of (x) the amount of its Consolidated Total
Debt at such time to (y) its Consolidated EBITDA for its Testing Period most
recently ended, ( i) as of the Closing Date until December 31, 2004, to exceed
3.25 and (ii) thereafter, to exceed 3.00 to 1.00.

 

10.9. Interest Coverage Ratio. The Borrower will not permit its Interest
Coverage Ratio to be less than 2.50 to 1.00 for any Testing Period.

 

10.10. Minimum Consolidated Net Worth. The Borrower’s Consolidated Net Worth any
time shall not be less than the sum of (i) $145,685,000 plus (ii) 50% of
Consolidated Net Income (to the extent a positive number) for each fiscal
quarter thereafter.

 

10.11. Prepayments and Refinancings of Other Debt, etc. The Borrower will not,
and will not permit any of its Subsidiaries to, make (or give any notice in
respect thereof) any voluntary or optional payment or prepayment or redemption
or acquisition for value of (including, without limitation, by way of depositing
with the trustee with respect thereto money or securities before due for the
purpose of paying when due) or exchange of, or refinance or refund, any
Indebtedness of the Borrower or its Subsidiaries having an outstanding principal
balance (or Capitalized Lease Obligation, in the case of a Capital Lease, or
present value, based on the implicit interest rate, in the case of any Synthetic
Lease) in excess of $5,000,000 (other than the Obligations and intercompany
loans and advances among the Borrower and its Subsidiaries); provided that the
Borrower or any Subsidiary may refinance or refund any such Indebtedness if the
aggregate principal amount thereof (or Capitalized Lease Obligation, in the case
of a Capital Lease, or present value, based on the implicit interest rate, in
the case of any Synthetic Lease) is not increased and the weighted average life
to maturity thereof (computed in accordance with standard financial practice) is
not reduced.

 

10.12. Limitation on Certain Restrictive Agreements. The Borrower will not, and
will not permit any of its Subsidiaries to, directly or indirectly, enter into,
incur or permit to exist or become effective, any agreement or other arrangement
that prohibits, restricts or imposes any condition upon: (a) the ability of the
Borrower or any Subsidiary to create, incur or suffer to exist any Lien upon any
of its property or assets as security for Indebtedness; or (b) the ability of
any such Subsidiary to pay dividends or make any other distributions on its
capital stock or any other interest or participation in its profits owned by the
Borrower or any Subsidiary of the Borrower, or pay any Indebtedness owed to the
Borrower or a Subsidiary of the Borrower, or to make loans or advances to the
Borrower or any of the Borrower’s other Subsidiaries, or transfer any of its
property or assets to the Borrower or any of the Borrower’s other Subsidiaries,
except for such restrictions existing under or by reason of (i) applicable law,
(ii) this Agreement and the other Credit Documents, (iii) customary provisions
restricting subletting or assignment of any lease governing a leasehold
interest, (iv) customary provisions restricting assignment of any licensing
agreement entered into in the ordinary course of business, (v) customary
provisions restricting the transfer or further encumbering of assets subject to
Liens permitted under section 10.3 (b), (c) or (d), (vi) restrictions contained
in the Existing Indebtedness Agreements as in effect on the Closing Date (and
similar restrictions governing any Indebtedness incurred in connection with the
refinancing of the Existing Indebtedness in compliance with section
10.3(b)(ii)), (vii) customary restrictions affecting only a Subsidiary of the
Borrower under any agreement or instrument governing any of the Indebtedness of
a Subsidiary permitted pursuant to 10.4, (viii) any document relating to
Indebtedness secured by a Lien permitted by section 10.3, insofar as the
provisions thereof limit grants of junior liens on the assets securing such
Indebtedness, and (ix) any Operating Lease or Capital Lease,

 

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insofar as the provisions thereof limit grants of a security interest in, or
other assignments of, the related leasehold interest to any other person.

 

10.13. Transactions with Affiliates. The Borrower will not, and will not permit
any Subsidiary to, enter into any transaction or series of transactions with any
Affiliate (other than, in the case of the Borrower, any Subsidiary, and in the
case of a Subsidiary, the Borrower or another Subsidiary) other than in the
ordinary course of business of and pursuant to the reasonable requirements of
the Borrower’s or such Subsidiary’s business and upon fair and reasonable terms
no less favorable to the Borrower or such Subsidiary than would be obtained in a
comparable arm’s-length transaction with a person other than an Affiliate,
except (i) sales of goods to an Affiliate for use or distribution outside the
United States that in the good faith judgment of the Borrower complies with any
applicable legal requirements of the Code, or (ii) agreements and transactions
with and payments to officers, directors and shareholders that are either (A)
entered into in the ordinary course of business and not prohibited by any of the
provisions of this Agreement, or (B) entered into outside the ordinary course of
business, approved by the directors or shareholders of the Borrower and not
prohibited by any of the provisions of this Agreement.

 

10.14. Plan Terminations, Minimum Funding, etc. The Borrower will not, and will
not permit any ERISA Affiliate to: (i) terminate any Plan or plans so as to
result in liability of the Borrower or any ERISA Affiliate to the PBGC in excess
of, in the aggregate, the amount that is equal to 5% of the Borrower’s
Consolidated Net Worth as of the date of the then most recent financial
statements furnished to the Lenders pursuant to the provisions of this
Agreement; (ii) permit to exist one or more events or conditions that reasonably
present a material risk of the termination by the PBGC of any Plan or Plans with
respect to which the Borrower or any ERISA Affiliate would, in the event of such
termination, incur liability to the PBGC in excess of such amount in the
aggregate; or (iii) fail to comply with the minimum funding standards of ERISA
and the Code with respect to any Plan.

 

SECTION 11. EVENTS OF DEFAULT.

 

11.1. Events of Default. Any of the following specified events (each an “Event
of Default”) shall constitute an Event of Default hereunder:

 

(a) Payments: the Borrower shall: (i) default in the payment when due of any
principal of the Loans; or (ii) default, and such default shall continue for
five or more days, in the payment when due of any interest on the Loans or any
Fees or any other amounts owing hereunder or under any other Credit Document; or

 

(b) Representations, etc.: any representation, warranty or statement made by the
Borrower herein or in any other Credit Document or in any statement or
certificate delivered or required to be delivered pursuant hereto or thereto
shall prove to be untrue in any material respect on the date as of that made or
deemed made; or

 

(c) Certain Covenants : the Borrower shall default in the due performance or
observance by it of any term, covenant or agreement contained in section
9.1(f)(i), or sections 10.2 through 10.12, inclusive, of this Agreement; or

 

(d) Other Covenants : the Borrower shall default in the due performance or
observance by it of any term, covenant or agreement contained in this Agreement
or any other Credit Document, other than those referred to in section 11.1(a) or
(b) or (c) above, and such default is not remedied within 30 days after the
earlier of (i) an officer of the Borrower obtaining actual knowledge of such
default and (ii) the Borrower receiving written notice of such default from the
Administrative Agent or the Required Lenders (any such notice to be identified
as a “notice of default” and to refer specifically to this paragraph); or

 

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(e) Cross Default Under Other Agreements: the Borrower or any of its
Subsidiaries shall (i) default in any payment with respect to any Indebtedness
(other than the Obligations) owed to any Lender or any of its Affiliates, or
having an unpaid principal amount of $2,500,000 or greater, and such default
shall continue after the applicable grace period, if any, specified in the
agreement or instrument relating to such Indebtedness, or (ii) default in the
observance or performance of any agreement or condition relating to any such
Indebtedness or contained in any instrument or agreement evidencing, securing or
relating thereto (and all grace periods applicable to such observance,
performance or condition shall have expired), or any other event shall occur or
condition exist, the effect of which default or other event or condition is to
cause, or to permit the holder or holders of such Indebtedness (or a trustee or
agent on behalf of such holder or holders) to cause any such Indebtedness to
become due prior to its stated maturity; or any such Indebtedness of the
Borrower or any of its Subsidiaries shall be declared to be due and payable, or
shall be required to be prepaid (other than by a regularly scheduled required
prepayment or redemption, prior to the stated maturity thereof); or

 

(f) Other Credit Documents: the Subsidiary Guaranty or any other Credit Document
shall cease for any reason (other than termination in accordance with its terms)
to be in full force and effect; or any Credit Party shall default in any payment
obligation thereunder; or any Credit Party shall default in any respect in the
due performance and observance of any other obligation thereunder and such
default shall continue unremedied for a period of at least 30 days; or any
Credit Party shall (or seek to) disaffirm or otherwise limit its obligations
thereunder otherwise than in strict compliance with the terms thereof; or

 

(g) Judgments: one or more judgments or decrees shall be entered against the
Borrower and/or any of its Subsidiaries involving a liability (other than a
liability covered by insurance, as to which the carrier has adequate claims
paying ability and has not denied coverage or reserved its rights) equal to or
more than $2,500,000 (in the aggregate for all such judgments and decrees for
the Borrower and its Subsidiaries) and any such judgments or decrees shall not
have been vacated, discharged or stayed or bonded pending appeal within 30 days
(or such longer period, not in excess of 60 days, during which enforcement
thereof, and the filing of any judgment lien, is effectively stayed or
prohibited) from the entry thereof; or

 

(h) Bankruptcy, etc.: the Borrower or any of its Material Subsidiaries shall
commence a voluntary case concerning itself under Title 11 of the United States
Code entitled “Bankruptcy,” as now or hereafter in effect, or any successor
thereto (the “Bankruptcy Code”); or an involuntary case is commenced against the
Borrower or any of its Material Subsidiaries and the petition is not
controverted within 10 days, or is not dismissed within 60 days, after
commencement of the case; or a custodian (as defined in the Bankruptcy Code) is
appointed for, or takes charge of, all or substantially all of the property of
the Borrower or any of its Material Subsidiaries; or the Borrower or any of its
Material Subsidiaries commences (including by way of applying for or consenting
to the appointment of, or the taking of possession by, a rehabilitator,
receiver, custodian, trustee, conservator or liquidator (collectively, a
“conservator”) of itself or all or any substantial portion of its property) any
other proceeding under any reorganization, arrangement, adjustment of debt,
relief of debtors, dissolution, insolvency, liquidation, rehabilitation,
conservatorship or similar law of any jurisdiction whether now or hereafter in
effect relating to the Borrower or any of its Material Subsidiaries; or any such
proceeding is commenced against the Borrower or any of its Material Subsidiaries
to the extent such proceeding is consented to by such person or remains
undismissed for a period of 60 days; or the Borrower or any of its Material
Subsidiaries is adjudicated insolvent or bankrupt; or any order of relief or
other order approving any such case or proceeding is entered; or the Borrower or
any of its Material Subsidiaries suffers any appointment of any conservator or
the like for it or any substantial part of its property that continues
undischarged or unstayed for a period of 60 days; or the Borrower or any of its
Material Subsidiaries makes a general assignment for the benefit of creditors;
or any corporate (or similar organizational) action is taken by the Borrower or
any of its Material Subsidiaries for the purpose of effecting any of the
foregoing; or

 

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(i) ERISA: (i) any of the events described in clauses (i) through (viii) of
section 9.1(g) shall have occurred; or (ii) there shall result from any such
event or events the imposition of a lien, the granting of a security interest,
or a liability or a material risk of incurring a liability; and (iii) any such
event or events or any such lien, security interest or liability, individually,
and/or in the aggregate, in the opinion of the Required Lenders, has had, or
could reasonably be expected to have, a Material Adverse Effect; or

 

(j) Material Adverse Change : there occurs an event or series of events that
could reasonably be expected to have a Material Adverse Effect; or

 

(k) Change of Control: there occurs a Change of Control.

 

11.2. Acceleration, etc. Upon the occurrence of any Event of Default, and at any
time thereafter, if any Event of Default shall then be continuing, the
Administrative Agent shall, upon the written request of the Required Lenders, by
written notice to the Borrower, take any or all of the following actions,
without prejudice to the rights of the Administrative Agent or any Lender to
enforce its claims against the Borrower (provided that, if an Event of Default
specified in section 11.1(h) shall occur, the result that would occur upon the
giving of written notice by the Administrative Agent as specified in clauses (i)
and (ii) below shall occur automatically without the giving of any such notice):
(i) declare the Total Commitment terminated, whereupon the Commitment of each
Lender shall forthwith terminate immediately without any other notice of any
kind; (ii) declare the principal of and any accrued interest in respect of all
Loans, and all other Obligations owing hereunder and under the other Credit
Documents to be, whereupon the same shall become, forthwith due and payable
without presentment, demand, protest or other notice of any kind, all of which
are hereby waived by the Borrower; and/or (iii) request that the Borrower shall
pay, and the Borrower agrees that it shall pay if requested to do so by the
Administrative Agent, to the Administrative Agent an amount in cash and/or Cash
Equivalents equal to 100% of the Letter of Credit Outstandings and the
Administrative Agent shall hold such payment as security for the reimbursement
obligations of the Borrower in respect of Letters of Credit pursuant to a cash
collateral agreement to be entered into in form and substance reasonably
satisfactory to the Administrative Agent, each Letter of Credit Issuer and the
Borrower (which shall permit certain investments in Cash Equivalents
satisfactory to the Administrative Agent, each Letter of Credit Issuer and the
Borrower until the proceeds are applied to the secured obligations).

 

11.3. Application of Liquidation Proceeds. All monies received by the
Administrative Agent or any Lender from the exercise of remedies hereunder or
under the other Credit Documents or under any other documents relating to this
Agreement shall, unless otherwise required by the terms of the other Credit
Documents or by applicable law, be applied as follows:

 

(1) first, to the payment of all expenses (to the extent not paid by the
Borrower) incurred by the Administrative Agent and the Lenders in connection
with the exercise of such remedies, including, without limitation, all
reasonable costs and expenses of collection, attorneys’ fees, court costs and
any foreclosure expenses;

 

(2) second, to the payment pro rata of interest then accrued on the outstanding
Loans;

 

(3) third, to the payment pro rata of any fees then accrued and payable to the
Administrative Agent or any Lender under this Agreement;

 

(4) fourth, to the payment pro rata of the principal balance then owing on the
outstanding Loans;

 

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(5) fifth, to the payment pro rata of all other amounts owed by the Borrower to
the Administrative Agent or any Lender under this Agreement or any other Credit
Document; and

 

(6) finally, any remaining surplus after all of the Obligations have been paid
in full, to the Borrower or to whomsoever shall be lawfully entitled thereto.

 

SECTION 12. THE ADMINISTRATIVE AGENT.

 

12.1. Appointment. Each Lender hereby irrevocably designates and appoints NCB as
Administrative Agent to act as specified herein and in the other Credit
Documents, and each such Lender hereby irrevocably authorizes NCB as the
Administrative Agent for such Lender, to take such action on its behalf under
the provisions of this Agreement and the other Credit Documents and to exercise
such powers and perform such duties as are expressly delegated to the
Administrative Agent by the terms of this Agreement and the other Credit
Documents, together with such other powers as are reasonably incidental thereto.
The Administrative Agent agrees to act as such upon the express conditions
contained in this section 12. Notwithstanding any provision to the contrary
elsewhere in this Agreement, the Administrative Agent shall not have any duties
or responsibilities, except those expressly set forth herein or in the other
Credit Documents, nor any 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.
The provisions of this section 12 are solely for the benefit of the
Administrative Agent, and the Lenders, and the Borrower and its Subsidiaries
shall not have any rights as a third party beneficiary of any of the provisions
hereof. In performing its functions and duties under this Agreement, the
Administrative Agent shall act solely as agent of the Lenders and does not
assume and shall not be deemed to have assumed any obligation or relationship of
agency or trust with or for the Borrower or any of its Subsidiaries.

 

12.2. Delegation of Duties. The Administrative Agent may execute any of its
duties under this Agreement or any other Credit Document by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. The Administrative Agent shall not be
responsible for the negligence or misconduct of any agents or attorneys-in-fact
selected by it with reasonable care except to the extent otherwise required by
section 12.3.

 

12.3. Exculpatory Provisions. Neither the Administrative Agent nor any of its
respective officers, directors, employees, agents, attorneys-in-fact or
affiliates shall be: (i) liable for any action lawfully taken or omitted to be
taken by it or such person under or in connection with this Agreement (except
for its or such person’s own gross negligence or willful misconduct); or (ii)
responsible in any manner to any of the Lenders for any recitals, statements,
representations or warranties made by the Borrower or of its Subsidiaries or any
of their respective officers contained in this Agreement, any other Credit
Document or in any certificate, report, statement or other document referred to
or provided for in, or received by the Administrative Agent under or in
connection with, this Agreement or any other Credit Document or for any failure
of the Borrower or any Subsidiary of the Borrower or any of their respective
officers to perform its obligations hereunder or thereunder. The Administrative
Agent shall not be under any obligation to any Lender to ascertain or to inquire
as to the observance or performance of any of the agreements contained in, or
conditions of, this Agreement, or to inspect the properties, books or records of
the Borrower or any of its Subsidiaries. The Administrative Agent shall not be
responsible to any Lender for the effectiveness, genuineness, validity,
enforceability, collectibility or sufficiency of this Agreement or any Credit
Document or for any representations, warranties, recitals or statements made
herein or therein or made in any written or oral statement or in any financial
or other statements, instruments, reports, certificates or any other documents
in connection herewith or therewith furnished or made by the Administrative
Agent to the Lenders or by or on behalf of the Borrower or any of its
Subsidiaries to the Administrative Agent or any Lender or be required to
ascertain or inquire as to the performance or observance of any of the terms,
conditions, provisions, covenants or agreements contained

 

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herein or therein or as to the use of the proceeds of the Loans or of the
existence or possible existence of any Default or Event of Default.

 

12.4. Reliance by Administrative Agent. The Administrative Agent shall be
entitled to rely, and shall be fully protected in relying, upon any note,
writing, resolution, notice, consent, certificate, affidavit, letter, cablegram,
telegram, facsimile transmission, telex or teletype message, statement, order or
other document or conversation believed by it, in good faith, to be genuine and
correct and to have been signed, sent or made by the proper person or persons
and upon advice and statements of legal counsel (including, without limitation,
counsel to the Borrower or any of its Subsidiaries), independent accountants and
other experts selected by the Administrative Agent. The Administrative Agent
shall be fully justified in failing or refusing to take any action under this
Agreement or any other Credit Document unless it shall first receive such advice
or concurrence of the Required Lenders as it deems appropriate or it shall first
be indemnified to its satisfaction by the Lenders against any and all liability
and expense that may be incurred by it by reason of taking or continuing to take
any such action. The Administrative Agent shall in all cases be fully protected
in acting, or in refraining from acting, under this Agreement and the other
Credit Documents in accordance with a request of the Required Lenders (or all of
the Lenders, as to any matter that, pursuant to section 13.12, can only be
effectuated with the consent of all Lenders), and such request and any action
taken or failure to act pursuant thereto shall be binding upon all the Lenders.

 

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

 

12.6. Non-Reliance. Each Lender expressly acknowledges that neither the
Administrative Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact or Affiliates have made any representations or warranties to
it and that no act by the Administrative Agent hereinafter taken, including any
review of the affairs of the Borrower or any of its Subsidiaries, shall be
deemed to constitute any representation or warranty by the Administrative Agent
to any Lender. Each Lender represents to the Administrative Agent that it has,
independently and without reliance upon the Administrative Agent, or any other
Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business,
assets, operations, property, financial and other conditions, prospects and
creditworthiness of the Borrower and its Subsidiaries and made its own decision
to make its Loans hereunder and enter into this Agreement. Each Lender also
represents that it will, independently and without reliance upon the
Administrative Agent, or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action under
this Agreement, and to make such investigation as it deems necessary to inform
itself as to the business, assets, operations, property, financial and other
conditions, prospects and creditworthiness of the Borrower and its Subsidiaries.
The Administrative Agent shall not have any duty or responsibility to provide
any Lender with any credit or other information concerning the business,
operations, assets, property, financial and other conditions, prospects or
creditworthiness of the Borrower or any of its Subsidiaries that may come into
the possession of the Administrative Agent or any of its officers, directors,
employees, agents, attorneys-in-fact or Affiliates.

 

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12.7. Indemnification. The Lenders agree to indemnify the Administrative Agent
in its capacity as such ratably according to their respective General Revolving
Loans and Unutilized General Revolving Commitments, from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, reasonable expenses or disbursements of any kind whatsoever that may at
any time (including, without limitation, at any time following the payment of
the Obligations) be imposed on, incurred by or asserted against the
Administrative Agent in its capacity as such in any way relating to or arising
out of this Agreement or any other Credit Document, or any documents
contemplated by or referred to herein or the transactions contemplated hereby or
any action taken or omitted to be taken by the Administrative Agent under or in
connection with any of the foregoing, but only to the extent that any of the
foregoing is not paid by the Borrower, provided that no Lender shall be liable
to the Administrative Agent for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements to the extent resulting solely from the Administrative
Agent’s gross negligence or willful misconduct. If any indemnity furnished to
the Administrative Agent for any purpose shall, in the opinion of the
Administrative Agent, be insufficient or become impaired, the Administrative
Agent may call for additional indemnity and cease, or not commence, to do the
acts indemnified against until such additional indemnity is furnished. The
agreements in this section 12.7 shall survive the payment of all Obligations.

 

12.8. The Administrative Agent in Individual Capacity. The Administrative Agent
and its Affiliates may make loans to, accept deposits from and generally engage
in any kind of business with the Borrower, its Subsidiaries and their Affiliates
as though not acting as Administrative Agent hereunder. With respect to the
Loans made by it and all Obligations owing to it, the Administrative Agent shall
have the same rights and powers under this Agreement as any Lender and may
exercise the same as though it were not the Administrative Agent, and the terms
“Lender” and “Lenders” shall include the Administrative Agent in its individual
capacity.

 

12.9. Successor Administrative Agent. The Administrative Agent may resign as the
Administrative Agent upon not less than 30 Business Days’ notice to the Lenders
and the Borrower. The Administrative Agent may be removed as the Administrative
Agent for cause upon not less than 30 Business Days’ notice to the
Administrative Agent and the Borrower from the Required Lenders. The Required
Lenders shall appoint from among the Lenders a successor Administrative Agent
for the Lenders, subject to prior approval by the Borrower if no Event of
Default has occurred and is continuing (such approval not to be unreasonably
withheld or delayed), whereupon such successor agent shall succeed to the
rights, powers and duties of the Administrative Agent, and the term
“Administrative Agent” shall include such successor agent effective upon its
appointment, and the resigning or removed Administrative Agent’s rights, powers
and duties as the Administrative Agent shall be terminated, without any other or
further act or deed on the part of such former Administrative Agent or any of
the parties to this Agreement. After the retiring or removed Administrative
Agent’s resignation or removal hereunder as the Administrative Agent, the
provisions of this section 12 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.

 

12.10. Other Agents. Any Lender identified herein as a Co-Agent, Syndication
Agent, Documentation Agent, Managing Agent, Manager or any other corresponding
title, other than “Administrative Agent,” shall have no right, power,
obligation, liability, responsibility or duty under this Agreement or any other
Credit Document except those applicable to all Lenders as such. Each Lender
acknowledges that it has not relied, and will not rely, on any Lender so
identified in deciding to enter into this Agreement or in taking or not taking
any action hereunder.

 

SECTION 13. MISCELLANEOUS.

 

13.1. Payment of Expenses etc. (a) Whether or not the transactions contemplated
hereby are consummated, the Borrower agrees to pay (or reimburse the
Administrative Agent for) all reasonable

 

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out-of-pocket costs and expenses of the Administrative Agent in connection with
the negotiation, preparation, execution and delivery of the Credit Documents and
the documents and instruments referred to therein, including, without
limitation, the reasonable fees and disbursements of Jones Day, special counsel
to the Administrative Agent.

 

(b) The Borrower agrees to pay (or reimburse the Administrative Agent and its
Affiliates for) all reasonable out-of-pocket costs and expenses of any Agent or
any of its Affiliates in connection with any amendment, waiver or consent
relating to any of the Credit Documents that is requested by the Borrower,
including, without limitation, the reasonable fees and disbursements of Jones
Day, special counsel to the Administrative Agent.

 

(c) The Borrower agrees to pay (or reimburse the Administrative Agent, the
Lenders and their Affiliates for) all reasonable out-of-pocket costs and
expenses of the Administrative Agent, the Lenders and their Affiliates in
connection with the enforcement against the Borrower of any of the Credit
Documents or the other documents and instruments referred to therein, including,
without limitation, (i) the reasonable fees and disbursements of Jones Day,
special counsel to the Administrative Agent, and (ii) the reasonable fees and
disbursements of any individual counsel to any Lender (including allocated costs
of internal counsel).

 

(d) Without limitation of the preceding section 13.1(c), in the event of the
bankruptcy, insolvency, rehabilitation or other similar proceeding in respect of
the Borrower, the Borrower agrees to pay all costs of collection and defense,
including reasonable attorneys’ fees in connection therewith and in connection
with any appellate proceeding or post-judgment action involved therein, that
shall be due and payable together with all required service or use taxes.

 

(e) The Borrower agrees to pay and hold the Administrative Agent and each of the
Lenders harmless from and against any and all present and future stamp and other
similar taxes with respect to the foregoing matters and save the Administrative
Agent and each of the Lenders harmless from and against any and all liabilities
with respect to or resulting from any delay or omission (other than to the
extent attributable to any such indemnified person) to pay such taxes.

 

(f) The Borrower agrees to indemnify the Administrative Agent, each Lender, and
their respective officers, directors, trustees, employees, representatives,
agents and Affiliates, and the successors and assigns of any of the foregoing
(collectively, the “Indemnities”) from and hold each of them harmless against
any and all losses, liabilities, claims, damages or expenses reasonably incurred
by any of them as a result of, or arising out of, or in any way related to, or
by reason of:

 

(i) any investigation, litigation or other proceeding (whether or not any Lender
is a party thereto) related to the entering into and/or performance of any
Credit Document or the use of the proceeds of any Loans hereunder or the
consummation of any transactions contemplated in any Credit Document, other than
any such investigation, litigation or proceeding arising out of transactions
solely between any of the Lenders or the Administrative Agent, transactions
solely involving the assignment by a Lender of all or a portion of its Loans and
Commitments, or the granting of participations therein, as provided in this
Agreement, or arising solely out of any examination of a Lender by any
regulatory or other governmental authority having jurisdiction over it; or

 

(ii) the actual or alleged presence of Hazardous Materials in the air, surface
water or groundwater or on the surface or subsurface of any Real Property owned,
leased or at any time operated by the Borrower or any of its past or then
current Subsidiaries or Affiliates or any of their predecessors in interest, the
release, generation, storage, transportation, handling or disposal of Hazardous
Materials at any location, whether or not owned or operated by the Borrower or
any

 

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of its past or current Subsidiaries or any of their respective Affiliates or any
of their predecessors in interest, if the Borrower or any such Subsidiary or
Affiliate could have or is alleged to have any responsibility in respect
thereof, the non-compliance of any such Real Property with foreign, federal,
state and local laws, regulations and ordinances (including applicable permits
thereunder) applicable thereto, or any Environmental Claim asserted against the
Borrower or any of its Subsidiaries or any of their respective Affiliates, in
respect of any such Real Property,

 

including, in each case, without limitation, the reasonable documented fees and
disbursements of counsel incurred in connection with any such investigation,
litigation or other proceeding (but excluding any such losses, liabilities,
claims, damages or expenses to the extent incurred by reason of the gross
negligence or willful misconduct of the person to be indemnified or of any other
Indemnitee who is such person or an Affiliate of such person). To the extent
that the undertaking to indemnify, pay or hold harmless any person set forth in
the preceding sentence may be unenforceable because it is violative of any law
or public policy, the Borrower shall make the maximum contribution to the
payment and satisfaction of each of the indemnified liabilities that is
permissible under applicable law.

 

13.2. Right of Setoff. In addition to any rights now or hereafter granted under
applicable law or otherwise, and not by way of limitation of any such rights,
upon the maturity or the acceleration of the Loans, each Lender is hereby
authorized at any time or from time to time, without presentment, demand,
protest or other notice of any kind to the Borrower or to any other person, any
such notice being hereby expressly waived, to set off and to appropriate and
apply any and all deposits (general or special) and any other Indebtedness at
any time held or owing by such Lender (including, without limitation, by
branches and agencies of such Lender wherever located) to or for the credit or
the account of the Borrower against and on account of the Obligations and
liabilities of the Borrower to such Lender under this Agreement or under any of
the other Credit Documents, including, without limitation, all interests in
Obligations of the Borrower purchased by such Lender pursuant to section
13.4(b), and all other claims of any nature or description arising out of or
connected with this Agreement or any other Credit Document, irrespective of
whether or not such Lender shall have made any demand hereunder and although
said Obligations, liabilities or claims, or any of them, shall be contingent or
unmatured.

 

13.3. Notices. Except as otherwise expressly provided herein, all notices and
other communications provided for hereunder shall be in writing (including
telegraphic, telex, facsimile transmission, e-mail transmission or cable
communication) and mailed, telegraphed, telexed, transmitted, cabled or
delivered, if to the Borrower, at 500 Calgon Carbon Drive, Pittsburgh,
Pennsylvania 15205, attention: Daniel W. Sullivan, Treasurer (facsimile: (412)
787-6313 and (412) 787-4751); if to any Lender at its address specified for such
Lender on Annex I hereto; if to the Administrative Agent, at 20 Stanwix Avenue,
Pittsburgh, Pennsylvania 15219, attention: Lori B. Shure, Vice President
(facsimile: (412) 471-4883); or at such other address as shall be designated by
any party in a written notice to the other parties hereto. All such notices and
communications shall be mailed, telegraphed, telexed, telecopied, transmitted or
cabled or sent by overnight courier, and shall be effective when received.

 

13.4. Benefit of Agreement. (a) Successors and Assigns Generally. This Agreement
shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto and their respective successors and assigns, provided that the
Borrower may not assign or transfer any of its rights or obligations hereunder
without the prior written consent of all the Lenders (other than any Defaulting
Lender), and, provided, further, that any assignment by a Lender of its rights
and obligations hereunder shall be effected in accordance with section 13.4(c).

 

(b) Participations. Notwithstanding the foregoing, each Lender may at any time
grant participations in any of its rights hereunder or under any of the Notes to
(x) an Affiliate of such Lender that is a commercial bank, financial institution
or other “accredited investor” (as defined in SEC

 

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Regulation D), (y) another Lender that is not a Defaulting Lender, or (z) one or
more Eligible Transferees, provided that in the case of any such participation:

 

(i) the participant shall not have any rights under this Agreement or any of the
other Credit Documents, including rights of consent, approval or waiver (the
participant’s rights against such Lender in respect of such participation to be
those set forth in the agreement executed by such Lender in favor of the
participant relating thereto);

 

(ii) such Lender’s obligations under this Agreement (including, without
limitation, its Commitment hereunder) shall remain unchanged;

 

(iii) such Lender shall remain solely responsible to the other parties hereto
for the performance of such obligations;

 

(iv) such Lender shall remain the holder of any Note for all purposes of this
Agreement; and

 

(v) the Borrower, the Administrative Agent, and the other Lenders shall continue
to deal solely and directly with the selling Lender in connection with such
Lender’s rights and obligations under this Agreement, and all amounts payable by
the Borrower hereunder shall be determined as if such Lender had not sold such
participation, except that the participant shall be entitled to the benefits of
sections 2.10 and 2.11 of this Agreement to the extent that such Lender would be
entitled to such benefits if the participation had not been entered into or
sold;

 

and, provided further, that no Lender shall transfer, grant or sell any
participation under which the participant shall have rights to approve any
amendment to or waiver of this Agreement or any other Credit Document except to
the extent such amendment or waiver would (x) extend any final date on or by
which any Loan in which such participant is participating may be incurred, or on
which any such Loan is scheduled to be repaid or mature, or extend any final
date on which any Commitment in which such participant is participating is
scheduled to expire or terminate, or reduce the rate of interest or Fees thereon
(except in connection with a waiver of the applicability of any post-default
increase in interest rates), or reduce the principal amount thereof, or increase
such participant’s participating interest in any Commitment over the amount
thereof then in effect (it being understood that a waiver of any Default or
Event of Default shall not constitute a change in the terms of any such
Commitment), or (y) consent to the assignment or transfer by the Borrower of any
of its rights and obligations under this Agreement.

 

(c) Assignments by Lenders. Notwithstanding the foregoing, (x) any Lender may
assign all or a fixed portion of its Loans and/or Commitment, and its rights and
obligations hereunder, to another Lender that is not a Defaulting Lender, or to
an Affiliate of any Lender (including itself) that is not a Defaulting Lender
and that is a commercial bank, financial institution or other “accredited
investor” (as defined in SEC Regulation D), and (y) any Lender may assign all,
or if less than all, a fixed portion, equal to at least $1,000,000 (or, in the
case of the first sixty days following the Closing Date, equal to at least
$500,000 and in $100,000 increments thereto) in the aggregate for the assigning
Lender or assigning Lenders, of its Loans and/or Commitment and its rights and
obligations hereunder, to one or more Eligible Transferees, each of which
assignees shall become a party to this Agreement as a Lender by execution of an
Assignment Agreement, provided that:

 

(i) in the case of any assignment of a portion of any Loans and/or Commitment of
a Lender, such Lender shall retain a minimum fixed portion of all Loans and
Commitments equal to at least $5,000,000;

 

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(ii) the Swing Line Lender may only assign its Swing Line Revolving Commitment
and its Swing Line Revolving Loans as an entirety and only if the assignee
thereof is or becomes a Lender with a General Revolving Commitment;

 

(iii) at the time of any such assignment the Lender Register shall be deemed
modified to reflect the Commitments of such new Lender and of the existing
Lenders;

 

(iv) upon surrender of the old Notes, new Notes will be issued to such new
Lender and to the assigning Lender, such new Notes to be in conformity with the
requirements of section 2.6 (with appropriate modifications) to the extent
needed to reflect the revised Commitments;

 

(v) in the case of clause (y) only, the consent of the Administrative Agent
shall be required in connection with any such assignment (which consent shall
not be unreasonably withheld or delayed);

 

(vi) the Administrative Agent shall receive at the time of each such assignment,
from the assigning or assignee Lender, the payment of a non-refundable
assignment fee of $3,500; and

 

(vii) the Administrative Agent and, so long as no Event of Default shall have
occurred and be continuing, the Borrower consent to such assignment, which
consent shall not be unreasonably withheld;

 

and, provided further, that such transfer or assignment will not be effective
until the Assignment Agreement in respect thereof is recorded by the
Administrative Agent on the Lender Register maintained by it as provided herein.

 

To the extent of any assignment pursuant to this section 13.4(c), the assigning
Lender shall be relieved of its obligations hereunder with respect to its
assigned Commitments.

 

At the time of each assignment pursuant to this section 13.4(c) to a person that
is not already a Lender hereunder and that is not a United States person (as
such term is defined in section 7701(a)(30) of the Code) for Federal income tax
purposes, the respective assignee Lender shall provide to the Borrower and the
Administrative Agent the appropriate Internal Revenue Service Forms (and, if
applicable a section 6.4(b)(ii) Certificate) described in section 6.4(b). To the
extent that an assignment of all or any portion of a Lender’s Commitment and
related outstanding Obligations pursuant to this section 13.4(c) would, at the
time of such assignment, result in increased costs under section 2.10 from those
being charged by the respective assigning Lender prior to such assignment, then
the Borrower shall not be obligated to pay such increased costs (although the
Borrower shall be obligated to pay any other increased costs of the type
referred to above in this sentence resulting from changes after the date of the
respective assignment).

 

Nothing in this section 13.4(c) shall prevent or prohibit: (i) any Lender that
is a bank, trust company or other financial institution from pledging its Notes
or Loans to a Federal Reserve Bank in support of borrowings made by such Lender
from such Federal Reserve Bank; or (ii) any Lender that is a trust, limited
liability company, partnership or other investment company from pledging its
Notes or Loans to a trustee or agent for the benefit of holders of certificates
or debt securities issued by it. No such pledge, or any assignment pursuant to
or in lieu of an enforcement of such a pledge, shall relieve the transferor
Lender from its obligations hereunder.

 

(d) No SEC Registration or Blue Sky Compliance. Notwithstanding any other
provisions of this section 13.4, no transfer or assignment of the interests or
obligations of any Lender hereunder or any grant of participation therein shall
be permitted if such transfer, assignment or grant would require the

 

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Borrower to file a registration statement with the SEC or to qualify the Loans
under the “Blue Sky” laws of any State.

 

(e) Representations of Lenders. Each Lender initially party to this Agreement
hereby represents, and each person that became a Lender pursuant to an
assignment permitted by this section 13.4 will, upon its becoming party to this
Agreement, represent that it is a commercial lender, other financial institution
or other “accredited” investor (as defined in SEC Regulation D) that makes or
acquires loans in the ordinary course of its business and that it will make or
acquire Loans for its own account in the ordinary course of such business,
provided that subject to the preceding sections 13.4(b) and (c), the disposition
of any promissory notes or other evidences of or interests in Indebtedness held
by such Lender shall at all times be within its exclusive control.

 

(f) Grants by Lenders to SPCs. Notwithstanding anything to the contrary
contained herein, any Lender, (a “Granting Lender”) may grant to a special
purpose funding vehicle (an “SPC”), identified as such in writing from time to
time by the Granting Lender to the Administrative Agent, the Borrower and the
other Lenders, the option to provide to the Borrower all or any part of any Loan
that such Granting Lender would otherwise be obligated to make to the Borrower
pursuant to this Agreement; provided that (i) nothing herein shall constitute a
commitment by any SPC to make any Loan, and (ii) if an SPC elects not to
exercise such option or otherwise fails to provide all or any part of such Loan,
the Granting Lender shall be obligated to make such Loan pursuant to the terms
hereof. The making of a Loan by an SPC hereunder shall utilize the Commitment of
the Granting Lender to the same extent, and as if, such Loan were made by such
Granting Lender. Each party hereto hereby agrees that no SPC shall be liable for
any indemnity or payment under this Agreement for which a Lender would otherwise
be liable for so long as, and to the extent, the Granting Lender provides such
indemnity or makes such payment. In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior indebtedness
of any SPC, it will not institute against, or join any other person in
instituting against, such SPC any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings under the laws of the United States or any
State thereof. In addition, notwithstanding anything to the contrary contained
in this section 13.4, any SPC may (i) with notice to, but without the prior
written consent of, the Borrower and the Administrative Agent and without paying
any processing fee therefor, assign all or a portion of its interests in any
Loans to the Granting Lender or to any financial institutions providing
liquidity and/or credit support to or for the account of such SPC to support the
funding or maintenance of Loans and (ii) disclose on a confidential basis any
non-public information relating to its Loans to any rating agency, commercial
paper dealer or provider of any surety, guarantee or credit or liquidity
enhancements to such SPC. In no event shall the Borrower be obligated to pay to
an SPC that has made a Loan any greater amount than the Borrower would have been
obligated to pay under this Agreement had the applicable Granting Lender made
such Loan. This section 13.4(f) may not be amended without the written consent
of any Granting Lender affected thereby.

 

13.5. No Waiver: Remedies Cumulative. No failure or delay on the part of the
Administrative Agent or any Lender in exercising any right, power or privilege
hereunder or under any other Credit Document and no course of dealing between
the Borrower and the Administrative Agent or any Lender shall operate as a
waiver thereof, nor shall any single or partial exercise of any right, power or
privilege hereunder or under any other Credit Document preclude any other or
further exercise thereof or the exercise of any other right, power or privilege
hereunder or thereunder. The rights and remedies herein expressly provided are
cumulative and not exclusive of any rights or remedies that the Administrative
Agent or any Lender would otherwise have. No notice to or demand on the Borrower
in any case shall entitle the Borrower to any other or further notice or demand
in similar or other

 

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circumstances or constitute a waiver of the rights of the Administrative Agent
or any Lender to any other or further action in any circumstances without notice
or demand.

 

13.6. Payments Pro Rata. (a) The Administrative Agent agrees that promptly after
its receipt of each payment from or on behalf of the Borrower in respect of any
Obligations, it shall distribute such payment to the Lenders (other than any
Lender that has expressly waived in writing its right to receive its pro rata
share thereof) pro rata based upon their respective shares, if any, of the
Obligations with respect to which such payment was received. As to any such
payment received by the Administrative Agent prior to 1:00 P.M. (local time at
its Payment Office) in funds that are immediately available on such day, the
Administrative Agent will use all reasonable efforts to distribute such payment
in immediately available funds on the same day to the Lenders as aforesaid.

 

(b) Each of the Lenders agrees that, if it should receive any amount hereunder
(whether by voluntary payment, by realization upon security, by the exercise of
the right of setoff or banker’s lien, by counterclaim or cross action, by the
enforcement of any right under the Credit Documents, or otherwise) that is
applicable to the payment of the principal of, or interest on, the Loans or
Fees, of a sum that with respect to the related sum or sums received by other
Lenders is in a greater proportion than the total of such Obligation then owed
and due to such Lender bears to the total of such Obligation then owed and due
to all of the Lenders immediately prior to such receipt, then such Lender
receiving such excess payment shall purchase for cash without recourse or
warranty from the other Lenders an interest in the Obligations to such Lenders
in such amount as shall result in a proportional participation by all of the
Lenders in such amount, provided that if all or any portion of such excess
amount is thereafter recovered from such Lender, such purchase shall be
rescinded and the purchase price restored to the extent of such recovery, but
without interest.

 

(c) Notwithstanding anything to the contrary contained herein, the provisions of
the preceding sections 13.6(a) and (b) shall be subject to the express
provisions of this Agreement that require, or permit, differing payments to be
made to Lenders that are not Defaulting Lenders, as opposed to Defaulting
Lenders.

 

13.7. Calculations: Computations. (a) The financial statements to be furnished
to the Lenders pursuant hereto shall be made and prepared in accordance with
GAAP consistently applied throughout the periods involved (except as set forth
in the notes thereto or as otherwise disclosed in writing by the Borrower to the
Lenders); provided, that if at any time the computations determining compliance
with section 10 utilize accounting principles different from those utilized in
the financial statements furnished to the Lenders, such computations shall set
forth in reasonable detail a description of the differences and the effect upon
such computations.

 

(b) All computations of interest on Prime Rate Loans and Eurodollar Loans
hereunder and all computations of Facility Fees and other Fees hereunder shall
be made on the actual number of days elapsed over a year of 360 days.

 

13.8. Governing Law; Submission to Jurisdiction; Venue; Waiver of Jury Trial.
(a) THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH
AND BE GOVERNED BY THE LAW OF THE COMMONWEALTH OF PENNSYLVANIA. TO THE FULLEST
EXTENT PERMITTED BY LAW, THE BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY
WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY JURISDICTION OTHER THAN THE
COMMONWEALTH OF PENNSYLVANIA GOVERNS THIS AGREEMENT OR ANY OF THE OTHER CREDIT
DOCUMENTS. Any legal action or proceeding with respect to this Agreement or any
other Credit Document may be brought in the Courts of the Commonwealth of
Pennsylvania, or of the United States

 

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for the Western District of Pennsylvania, and, by execution and delivery of this
Agreement, the Borrower hereby irrevocably accepts for itself and in respect of
its property, generally and unconditionally, the jurisdiction of the aforesaid
courts. The Borrower hereby further irrevocably consents to the service of
process out of any of the aforementioned courts in any such action or proceeding
by the mailing of copies thereof by registered or certified mail, postage
prepaid, to the Borrower at its address for notices pursuant to section 13.3,
such service to become effective 30 days after such mailing or at such earlier
time as may be provided under applicable law. Nothing herein shall affect the
right of the Administrative Agent or any Lender to serve process in any other
manner permitted by law or to commence legal proceedings or otherwise proceed
against the Borrower in any other jurisdiction.

 

(b) The Borrower hereby irrevocably waives any objection that it may now or
hereafter have to the laying of venue of any of the aforesaid actions or
proceedings arising out of or in connection with this Agreement or any other
Credit Document brought in the courts referred to in section 13.8(a) above and
hereby further irrevocably waives and agrees not to plead or claim in any such
court that any such action or proceeding brought in any such court has been
brought in an inconvenient forum.

 

(c) EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO
A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OF THE OTHER CREDIT DOCUMENTS (INCLUDING,
WITHOUT LIMITATION, ANY AMENDMENTS, WAIVERS OR OTHER MODIFICATIONS RELATING TO
ANY OF THE FOREGOING), OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH
PARTY HERETO HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS PARAGRAPH.

 

13.9. Counterparts. This Agreement may be executed in any number of counterparts
and by the different parties hereto on separate counterparts, each of which when
so executed and delivered shall be an original, but all of which shall together
constitute one and the same agreement. A set of counterparts executed by all the
parties hereto shall be lodged with the Borrower and the Administrative Agent.

 

13.10. Effectiveness; Integration. This Agreement shall become effective on the
date (the “Effective Date”) on which the Borrower and each of the Lenders shall
have signed a copy hereof (whether the same or different copies) and shall have
delivered the same to the Administrative Agent at the Notice Office of the
Administrative Agent or, in the case of the Lenders, shall have given to the
Administrative Agent telephonic (confirmed in writing), written telex or
facsimile transmission notice (actually received) at such office that the same
has been signed and mailed or sent by overnight courier to it. This Agreement,
the other Credit Documents and any separate letter agreements with respect to
fees payable to the Administrative Agent, for its own account and benefit and/or
for the account, benefit of, and distribution to, the Lenders, constitute the
entire contract among the parties relating to the subject matter hereof and
thereof and supersede any and all previous agreements and understandings, oral
or written, relating to the subject matter hereof or thereof.

 

13.11. Headings Descriptive. The headings of the several sections and other
portions of this Agreement are inserted for convenience only and shall not in
any way affect the meaning or construction of any provision of this Agreement.

 

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13.12. Amendment or Waiver. Neither this Agreement nor any terms hereof or
thereof may be amended, waived or otherwise modified unless such amendment,
waiver or other modification is in writing and signed by the Borrower and the
Required Lenders, provided that no such amendment, waiver or other modification
shall, without the consent of each Lender (other than a Defaulting Lender)
affected thereby:

 

(a) extend any final date on or by which any Loan to be made by such Lender may
be incurred, or on which any such Loan is scheduled to be repaid (but not
prepaid) or mature, or extend any date on or by which any interest or fees
payable hereunder are scheduled to be paid, or extend any final date on which
any Commitment of such Lender is scheduled to expire or terminate or increase
any such Lender’s General Revolving Commitment or extend the expiration date of
any Letter of Credit as to which such Lender is a Participant pursuant to
section 3.4 beyond the latest expiration date for a Letter of Credit provided
for herein, or reduce the rate of interest or Fees thereon (except in connection
with a waiver of the applicability of any post-default increase in interest
rates), or reduce the principal amount thereof.

 

(b) amend, modify or waive any provision of this section 13.12, or section 12.7,
13.4, 13.6 or 13.7(b), or any other provision of any of the Credit Documents
pursuant to which the consent or approval of all Lenders is by the terms of such
provision explicitly required;

 

(c) reduce the percentage specified in, or otherwise modify, the definition of
Required Lenders;

 

(d) release any Material Subsidiary from the Subsidiary Guaranty; or

 

(e) consent to the assignment or transfer by the Borrower of any of its rights
and obligations under this Agreement.

 

No provision of section 12 may be amended without the consent of the
Administrative Agent.

 

13.13. Survival. All indemnities set forth herein including, without limitation,
in section 2.10, 2.11, 12.7 and 13.1, shall survive the execution and delivery
of this Agreement and the making, prepayment and repayment of Loans.

 

13.14. Domicile of Loans. Each Lender may transfer and carry its Loans at, to or
for the account of any branch office, subsidiary or affiliate of such Lender,
provided that no Borrower shall be responsible for costs arising under section
2.10 resulting from any such transfer (other than a transfer pursuant to section
2.12) to the extent not otherwise applicable to such Lender prior to such
transfer.

 

13.15. Confidentiality. (a) The Administrative Agent and the Lenders agrees to
maintain the confidentiality of the Confidential Information (as defined below),
except that Confidential Information may be disclosed: (i) to its and its
Affiliates’ directors, officers, employees and agents, including accountants,
legal counsel and other advisors (it being understood that the persons to whom
such disclosure is made will be informed of the confidential nature of such
Confidential Information and instructed to keep such Confidential Information
confidential); (ii) to any direct or indirect contractual counterparty in any
swap, hedge or similar agreement (or to any such contractual counterparty’s
professional advisor, so long as such contractual counterparty (or such
professional advisor) agrees to be bound by the provisions of this section
13.15; (iii) to the extent requested by any regulatory authority; (iv) to the
extent required by applicable laws or regulations or by any subpoena or similar
legal process; (v) to any other party to this Agreement; (vi) in connection with
the exercise of any remedies hereunder or under any of the other Credit
Documents, or any suit, action or proceeding relating to this Agreement or any
of the other Credit Documents or the enforcement of rights hereunder or
thereunder; (vii) subject to an agreement containing provisions substantially
the same as those of this section 13.15, to any assignee

 

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of or participant in, or any prospective assignee of or participant in, any of
its rights or obligations under this Agreement; (viii) with the consent of the
Borrower; or (ix) to the extent such Confidential Information (x) becomes
publicly available other than as a result of a breach of this section 13.15, or
(y) becomes available to the Administrative Agent or any Lender on a
nonconfidential basis from a source other than the Borrower.

 

(b) For the purposes of this section 13.15, “Confidential Information” means all
information received from the Borrower relating to the Borrower and/or its
Subsidiaries or their business, other than any such information that is (i)
identified at the time of delivery as non-confidential, or (ii) available to the
Administrative Agent or any Lender on a nonconfidential basis prior to
disclosure by the Borrower.

 

(c) Any person required to maintain the confidentiality of Confidential
Information as provided in this section 13.15 shall be considered to have
complied with its obligation to do so if such person has exercised the same
degree of care to maintain the confidentiality of such Confidential Information
as such person would accord to its own confidential information. The Borrower
hereby agrees that the failure of the Administrative Agent or any Lender to
comply with the provisions of this section 13.15 shall not relieve the Borrower
of any of its obligations under this Agreement or any of the other Credit
Documents.

 

13.16. Lender Register. The Borrower hereby designates the Administrative Agent
to serve as its agent, solely for purposes of this section 13.16, to retain a
copy of each Assignment Agreement delivered to and accepted by it and to
maintain a register (the “Lender Register”) on or in which it will record the
names and addresses of the Lenders, and the Commitments from time to time of
each of such Lenders to the Borrower, the Loans made to the Borrower by each of
such Lenders and each repayment and prepayment in respect of the principal
amount of such Loans of each such Lender. Failure to make any such recordation,
or (absent manifest error) any error in such recordation, shall not affect the
Borrower’s obligations in respect of such Loans. With respect to any Lender, the
transfer of any Commitment of such Lender and the rights to the principal of,
and interest on, any Loan made pursuant to such Commitment shall not be
effective until such transfer is recorded on the Lender Register maintained by
the Administrative Agent with respect to ownership of such Commitment and Loans
and prior to such recordation all amounts owing to the transferor with respect
to such Commitment and Loans shall remain owing to the transferor. The
registration of assignment or transfer of all or part of any Commitment and
Loans shall be recorded by the Administrative Agent on the Lender Register only
upon the acceptance by the Administrative Agent of a properly executed and
delivered Assignment Agreement pursuant to section 13.4(c). The Borrower agrees
to indemnify the Administrative Agent from and against any and all losses,
claims, damages and liabilities of whatsoever nature that may be imposed on,
asserted against or incurred by the Administrative Agent in performing its
duties under this section 13.16. The Lender Register shall be available for
inspection by the Borrower or any Lender at any reasonable time and from time to
time upon reasonable prior notice.

 

13.17. General Limitation of Liability. No claim may be made by the Borrower,
any Lender or the Administrative Agent or any other person against the
Administrative Agent or any other Lender or the Affiliates, directors, officers,
employees, attorneys or agents of any of them, for any damages other than actual
compensatory damages in respect of any claim for breach of contract or any other
theory of liability arising out of or related to the transactions contemplated
by this Agreement or any of the other Credit Documents, or any act, omission or
event occurring in connection therewith, and the Borrower, each Lender and the
Administrative Agent hereby, to the fullest extent permitted under applicable
law, waives, releases and agrees not to sue or counterclaim upon any such claim
for any special, consequential or punitive damages, whether or not accrued and
whether or not known or suspected to exist in its favor.

 

13.18. No Duty. All attorneys, accountants, appraisers, consultants and other
professional persons (including the firms or other entities on behalf of which
any such person may act) retained by the

 

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Administrative Agent or any Lender with respect to the transactions contemplated
by the Credit Documents shall have the right to act exclusively in the interest
of the Administrative Agent or such Lender, as the case may be, and shall have
no duty of disclosure, duty of loyalty, duty of care, or other duty or
obligation of any type or nature whatsoever to the Borrower, to any of its
Subsidiaries or Affiliates, or to any other person, with respect to any matters
within the scope of such representation or related to their activities in
connection with such representation. The Borrower agrees, on behalf of itself
and its Subsidiaries, not to assert any claim or counterclaim against any such
persons with regard to such matters, all such claims and counterclaims, now
existing or hereafter arising, whether known or unknown, foreseen or
unforeseeable, being hereby waived, released and forever discharged.

 

13.19. Lenders and Agents Not Fiduciary to Borrower, etc. The relationship among
the Borrower and its Subsidiaries and Affiliates, on the one hand, and the
Administrative Agent and the Lenders, on the other hand, is solely that of
debtor and creditor, and the Administrative Agent and the Lenders have no
fiduciary or other special relationship with the Borrower and/or any of its
Subsidiaries and Affiliates, and no term or provision of any Credit Document, no
course of dealing, no written or oral communication, or other action, shall be
construed so as to deem such relationship to be other than that of debtor and
creditor.

 

13.20. Survival of Representations and Warranties. All representations and
warranties herein shall survive the making of Loans hereunder, the execution and
delivery of this Agreement, the Notes and any other documents the forms of which
are attached as Exhibits hereto, the issue and delivery of the Notes, any
disposition thereof by any holder thereof, and any investigation made by the
Administrative Agent or any Lender or any other holder of any of the Notes or on
its behalf. All statements contained in any certificate or other document
delivered to the Administrative Agent or any Lender or any holder of any Notes
by or on behalf of the Borrower or any of its Subsidiaries or Affiliates
pursuant hereto or otherwise specifically for use in connection with the
transactions contemplated hereby shall constitute representations and warranties
by the Borrower hereunder, made as of the respective dates specified therein or,
if no date is specified, as of the respective dates furnished to the
Administrative Agent or any Lender.

 

13.21. Independence of Covenants. All covenants hereunder shall be given
independent effect so that if a particular action, event, condition or
circumstance is not permitted by any of such covenants, the fact that it would
be permitted by an exception to, or would otherwise be within the limitations or
restrictions of, another covenant, shall not avoid the occurrence of a Default
or an Event of Default if such action is taken or event, condition or
circumstance exists.

 

[The balance of this page is intentionally blank.]

 

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

 

CALGON CARBON CORPORATION      

NATIONAL CITY BANK OF PENNSYLVANIA

Individually as a Lender, and as a Letter of Credit Issuer, the Swing Line
Lender and Administrative Agent

By:           By:        

--------------------------------------------------------------------------------

         

--------------------------------------------------------------------------------

Name:

  Leroy M. Ball      

Name:

  Lori B. Shure

Title:

  Chief Financial Officer      

Title:

  Vice President

 

--------------------------------------------------------------------------------

PNC BANK, NATIONAL ASSOCIATION By:        

--------------------------------------------------------------------------------

Name:        

--------------------------------------------------------------------------------

Title:        

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

FLEET NATIONAL BANK By:        

--------------------------------------------------------------------------------

Name:        

--------------------------------------------------------------------------------

Title:        

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

FIFTH THIRD BANK By:        

--------------------------------------------------------------------------------

Name:        

--------------------------------------------------------------------------------

Title:        

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

WACHOVIA BANK, NATIONAL ASSOCIATION By:        

--------------------------------------------------------------------------------

Name:        

--------------------------------------------------------------------------------

Title:        

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

ANNEX I

 

INFORMATION AS TO LENDERS

 

Name of Lender

--------------------------------------------------------------------------------

   Commitment

--------------------------------------------------------------------------------

  

Domestic Lending Office

--------------------------------------------------------------------------------

   Eurodollar
Lending Office

--------------------------------------------------------------------------------

National City Bank of Pennsylvania    General Revolving
Commitment:

 

$32,000,000

 

Swing Line
Revolving
Commitment:

 

$10,000,000

  

National City Bank of Pennsylvania

 

Primary Contact:

 

Lori B. Shure

20 Stanwix Avenue

Pittsburgh, PA 15219

Telephone: (412) 644-7757

Facsimile: (412) 471-4883

 

Contact for Borrowings, Payments, etc.:

 

Attn: Sonya Townsell

629 Euclid Avenue

Locator No. 01-3028

Cleveland, OH 44114

Telephone: (216) 222-2254

Facsimile: (216) 222-0012

 

Wiring Information:

 

National City Bank

Pittsburgh, PA

ABA: 043-000-122

Beneficiary: Agent Services Group

Account No. 151810

Ref: Calgon Carbon

   Same

 

--------------------------------------------------------------------------------

PNC Bank, National Association    General Revolving
Commitment:

 

$24,500,000

  

PNC Bank, National Association

 

Primary Contact:

 

William Armitage

249 Fifth Avenue, 5th Floor

Pittsburgh, PA 15222

Telephone: (412) 768-1444

Facsimile: (412) 762-4718

 

Contact for Borrowings, Payments, etc.:

 

Attn: Gloria Adams-Garbart

500 First Avenue

Pittsburgh, PA 15219

Telephone: (412) 762-4753

Facsimile: (412) 768-4586

 

Wiring Information:

 

PNC Bank

Pittsburgh, PA

ABA: 043-000-096

Beneficiary: Commercial Loans

Account No. 130760016803

Ref: Calgon Carbon

 

   Same Wachovia Bank, National Association    General Revolving
Commitment:

 

$24,500,000

  

Wachovia Bank, National Association

 

Primary Contact:

 

Patrick J. Kaufmann

Meetinghouse Business Center

2240 Butler Pike – PA5414

Plymouth Meeting, PA 19462

Telephone: (610) 941-3308

Facsimile: (510) 941-3129

 

Contact for Borrowings, Payments, etc.:

 

Attn: Kathy Hansen

10 South Jefferson Street

Roanoke, VA 24011

Telephone: (540) 857-4515

Facsimile: (540) 857-4635

 

Wiring Information:

 

Wachovia Bank, National Association

Roanoke, VA

ABA: 053-000-219

Beneficiary: Commercial Support Services

Account No. 1459160000005

Ref: Calgon Carbon

Attn: Bank #(20), Obligor #(1258356488),

Obligation #(34)

   Same

 

--------------------------------------------------------------------------------

Fleet National Bank    General Revolving
Commitment:

 

$22,000,000

  

Fleet National Bank

 

Primary Contact:

 

David Molnar

625 Liberty Avenue, #2800

Pittsburgh, PA 15222

Telephone: (412) 255-3712

Facsimile: (412) 255-3760

 

Contact for Borrowings, Payments, etc.:

 

Attn: Zakiya Williams

7111 Valley Green Road

Fort Washington, PA 19034

Telephone: (215) 836-3842

Facsimile: (215) 836-7120

 

Wiring Information:

 

Fleet Bank N.A.

ABA: 021-300-019

Account No. 1510351-15901

Ref: Calgon Carbon Corp.

Attn: Zakiya Williams

 

   Same Fifth Third Bank    General Revolving
Commitment:

 

$22,000,000

  

Fifth Third Bank

 

Primary Contact:

 

Jim Janovsky

11 Parkway Center, Suite 375

Pittsburgh, PA 15222

Telephone: (412) 937-1855 x27

Facsimile: (412) 937-9896

 

Contact for Borrowings, Payments, etc.:

 

Attn: Vel Woods

1404 East Ninth Street

Cleveland, OH 44114

Telephone: (216) 274-5578

Facsimile: (216) 274-5420

 

Wiring Information:

 

Fifth Third Bank

Cincinnati, OH

ABA: 042-000-314

Beneficiary: Fifth Third Bank – Northeastern Ohio

Account No. 99208599

Ref: Calgon Carbon

   Same

 

--------------------------------------------------------------------------------

ANNEX II

 

INFORMATION AS TO SUBSIDIARIES

 

Name of Subsidiary

--------------------------------------------------------------------------------

  

Type of Organization

--------------------------------------------------------------------------------

  

Jurisdiction Where Organized

--------------------------------------------------------------------------------

  

Percentage of
Outstanding Stock or Other Equity
Interests Owned (Owned by the
Borrower unless otherwise noted)

--------------------------------------------------------------------------------

                

--------------------------------------------------------------------------------

                

--------------------------------------------------------------------------------

                

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

ANNEX III

 

DESCRIPTION OF EXISTING INDEBTEDNESS

 

--------------------------------------------------------------------------------

ANNEX IV

 

DESCRIPTION OF EXISTING LIENS

 

--------------------------------------------------------------------------------

ANNEX V

 

DESCRIPTION OF EXISTING ADVANCES, LOANS, INVESTMENTS AND GUARANTEES

 

--------------------------------------------------------------------------------

ANNEX VI

 

DESCRIPTION OF EXISTING LETTERS OF CREDIT

 

--------------------------------------------------------------------------------

ANNEX VII

 

DESCRIPTION OF MATERIAL RECOVERY EVENTS

 

--------------------------------------------------------------------------------

ANNEX VIII

 

ALTERNATIVE CURRENCIES

 

Euros

 

Canadian Dollars

 

Pounds Sterling

 

Japanese Yen

 

New Zealand Dollars

 

--------------------------------------------------------------------------------

ANNEX IX

 

DESCRIPTION OF CONTINGENT LIABILITIES WITH RESPECT TO

POST-RETIREMENT WELFARE BENEFIT PLANS

 

--------------------------------------------------------------------------------

ANNEX X

 

DESCRIPTION OF DOCUMENTS REQUIRED TO BE SCHEDULED

PURSUANT TO SECTION 9.11

 

 

--------------------------------------------------------------------------------

ANNEX XI

 

ENVIRONMENTAL MATTERS

 

--------------------------------------------------------------------------------

EXHIBIT A-1

 

GENERAL REVOLVING NOTE

 

$                    

Pittsburgh, Pennsylvania    February 18, 2004

 

FOR VALUE RECEIVED, the undersigned CALGON CARBON CORPORATION, a Delaware
corporation (herein, together with its successors and assigns, the “Borrower”),
hereby promises to pay to the order of              (the “Lender”), in lawful
money of the United States of America, provided that General Revolving Loans
denominated in an Alternative Currency shall be payable in such Alternative
Currency, in immediately available funds, at the Payment Office (such term and
certain other terms used herein without definition shall have the meanings
ascribed thereto in the Credit Agreement referred to below) of National City
Bank of Pennsylvania (the “Administrative Agent”), on the Maturity Date, the
principal sum of                      DOLLARS AND NO CENTS ($             ) or,
if less, the then unpaid principal amount of all General Revolving Loans made by
the Lender to the Borrower pursuant to the Credit Agreement.

 

The Borrower promises also to pay interest on the unpaid principal amount of
each General Revolving Loan made by the Lender to the Borrower in like money at
said office from the date hereof until paid at the rates and at the times
provided in section 2.8 of the Agreement.

 

This Note is one of the General Revolving Notes referred to in the Credit
Agreement, dated as of February 18, 2004, among the Borrower, the financial
institutions from time to time party thereto (including the Lender), and
National City Bank of Pennsylvania, as Administrative Agent (as from time to
time in effect, the “Credit Agreement”), and is entitled to the benefits thereof
and of the other Credit Documents (as defined in the Credit Agreement). As
provided in the Credit Agreement, this Note is subject to mandatory prepayment
prior to the Maturity Date, in whole or in part.

 

In case an Event of Default shall occur and be continuing, the principal of and
accrued interest on this Note may be declared to be due and payable in the
manner and with the effect provided in the Credit Agreement.

 

The Borrower hereby waives presentment, demand, protest or notice of any kind in
connection with this Note. No failure to exercise, or delay in exercising, any
rights hereunder on the part of the holder hereof shall operate as a waiver of
any such rights.

 

THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF
THE COMMONWEALTH OF PENNSYLVANIA.

 

CALGON CARBON CORPORATION

By:

       

--------------------------------------------------------------------------------

Name:

       

--------------------------------------------------------------------------------

Title:

       

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

LOANS AND PAYMENTS OF PRINCIPAL

 

Date of

Notation

--------------------------------------------------------------------------------

 

Amount of

Loan

--------------------------------------------------------------------------------

 

Type of Loan

--------------------------------------------------------------------------------

  

Interest

Period

--------------------------------------------------------------------------------

  

Amount of
Principal

Paid or

Prepaid

--------------------------------------------------------------------------------

   Unpaid
Principal
Balance

--------------------------------------------------------------------------------

   Made By

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EXHIBIT A-2

 

SWING LINE REVOLVING NOTE

 

$10,000,000

   

Pittsburgh, Pennsylvania

  February 18, 2004

 

FOR VALUE RECEIVED, the undersigned CALGON CARBON CORPORATION, a Delaware
corporation (herein, together with its successors and assigns, the “Borrower”),
hereby promises to pay to the order of NATIONAL CITY BANK OF PENNSYLVANIA (the
“Lender”), in lawful money of the United States of America in immediately
available funds, at the Payment Office (such term and certain other terms used
herein without definition shall have the meanings ascribed thereto in the Credit
Agreement referred to below) of National City Bank of Pennsylvania (the
“Administrative Agent”), the principal sum of TEN MILLION DOLLARS AND NO CENTS
($10,000,000) or, if less, the then unpaid principal amount of all Swing Line
Revolving Loans made by the Lender to the Borrower pursuant to the Credit
Agreement. The Borrower will pay the principal amount of any Swing Line
Revolving Loan no later than the Maturity Date.

 

The Borrower promises also to pay interest on the unpaid principal amount of
each Swing Line Revolving Loan made by the Lender in like money at said office
from the date hereof until paid at the rates and at the times provided in
section 2.8 of the Credit Agreement.

 

This Note is the Swing Line Revolving Note referred to in the Credit Agreement,
dated as of February 18, 2004, among the Borrower, the financial institutions
from time to time party thereto (including the Lender), and National City Bank
of Pennsylvania, as Administrative Agent (as from time to time in effect, the
“Credit Agreement”), and is entitled to the benefits thereof and of the other
Credit Documents (as defined in the Credit Agreement). As provided in the
Agreement, this Note is subject to mandatory prepayment prior to the maturity
date of any Swing Line Revolving Loan, in whole or in part.

 

In case an Event of Default shall occur and be continuing, the principal of and
accrued interest on this Note may be declared to be due and payable in the
manner and with the effect provided in the Credit Agreement.

 

The Borrower hereby waives presentment, demand, protest or notice of any kind in
connection with this Note. No failure to exercise, or delay in exercising, any
rights hereunder on the part of the holder hereof shall operate as a waiver of
any such rights.

 

--------------------------------------------------------------------------------

THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF
THE COMMONWEALTH OF PENNSYLVANIA.

 

CALGON CARBON CORPORATION By:        

--------------------------------------------------------------------------------

Name:

       

--------------------------------------------------------------------------------

Title:

       

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

LOANS AND PAYMENTS OF PRINCIPAL

 

Date of

Notation

--------------------------------------------------------------------------------

 

Amount of

Loan

--------------------------------------------------------------------------------

 

Type of

Loan/or

Interest Rate

--------------------------------------------------------------------------------

   Maturity

--------------------------------------------------------------------------------

  

Amount of
Principal

Paid or

Prepaid

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   Unpaid
Principal
Balance

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   Made By

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EXHIBIT B-1

 

NOTICE OF BORROWING

 

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EXHIBIT B-2

 

NOTICE OF CONVERSION

 

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EXHIBIT B-3

 

NOTICE OF REDENOMINATION

 

[Date]

 

National City Bank of Pennsylvania,

as Administrative Agent for the Lenders party

to the Credit Agreement referred to below

 

National City Bank of Pennsylvania

Attn: Agent Services

Locator No. 01-3028

629 Euclid Avenue

Cleveland, Ohio 44114

 

Attention: Commercial Loan Operations

 

  Re: Notice of Redenomination of Loans under the Credit Agreement, dated as of
February 18, 2004, with Calgon Carbon Corporation

 

Ladies and Gentlemen:

 

The undersigned, Calgon Carbon Corporation (the “Borrower”), refers to the
Credit Agreement, dated as of February 18, 2004 (as amended from time to time,
the “Credit Agreement,” the terms defined therein being used herein as therein
defined), among the Borrower, the financial institutions from time to time party
thereto (the “Lenders”), and National City Bank of Pennsylvania, as
Administrative Agent for such Lenders, and hereby gives you notice pursuant to
section 2. 7(b) of the Credit Agreement, that the undersigned hereby requests
one or more Redenominations of Loans into Loans of another currency, and in that
connection sets forth in the schedule attached hereto the information relating
to each such Redenomination.

 

Very truly yours,

CALGON CARBON CORPORATION

By:

       

--------------------------------------------------------------------------------

Name:

       

--------------------------------------------------------------------------------

Title:

       

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

REDENOMINATION SCHEDULE

 

Proposed Redenomination #1

[of the Loans described in the first table below

into Loans described in the second table below]

 

Date of Loan

--------------------------------------------------------------------------------

  

Type of Loans

--------------------------------------------------------------------------------

  

Aggregate Amount

of Loans

--------------------------------------------------------------------------------

  

Interest Period if Loans are
Eurodollar Loans

--------------------------------------------------------------------------------

               One Month __________, 200_    Prime Rate Loans   
$__________________                     Two Months      Eurodollar Loans   
Alternative Currency and Amount: ____________    Three Months      [Circle One
of Above]                     [Complete one of above]    Six Months            
  

[Circle one of above]

Date of Loan

--------------------------------------------------------------------------------

  

Type of Loans

--------------------------------------------------------------------------------

  

Aggregate Amount

of Loans

--------------------------------------------------------------------------------

  

Interest Period if Loans are
Eurodollar Loans

--------------------------------------------------------------------------------

               One Month __________, 200_    Prime Rate Loans   
$___________________                     Two Months      Eurodollar Loans   
Alternative Currency and Amount: _____________    Three Months      [Circle One
of Above]                     [Complete one of above]    Six Months            
  

[Circle one of above]

 

--------------------------------------------------------------------------------

Proposed Redenomination #2

[of the Loans described in the first table below

into Loans described in the second table below]

 

Date of Loan

--------------------------------------------------------------------------------

  

Type of Loans

--------------------------------------------------------------------------------

  

Aggregate Amount of Loans

--------------------------------------------------------------------------------

  

Interest Period if Loans are
Eurodollar Loans

--------------------------------------------------------------------------------

               One Month __________, 200_    Prime Rate Loans   
$__________________                     Two Months      Eurodollar Loans   
Alternative Currency and Amount: ____________    Three Months      [Circle One
of Above]                     [Complete one of above]    Six Months            
  

[Circle one of above]

Date of Loan

--------------------------------------------------------------------------------

  

Type of Loans

--------------------------------------------------------------------------------

  

Aggregate Amount of Loans

--------------------------------------------------------------------------------

  

Interest Period if Loans are
Eurodollar Loans

--------------------------------------------------------------------------------

               One Month __________, 200_    Prime Rate Loans   
$__________________                     Two Months      Eurodollar Loans   
Alternative Currency and Amount: ____________    Three Months      [Circle One
of Above]                     [Complete one of above]    Six Months            
  

[Circle one of above]

 

--------------------------------------------------------------------------------

EXHIBIT B-4

 

LETTER OF CREDIT REQUEST

 

No.                              1

 

Dated                  2

 

National City Bank of Pennsylvania,

as Administrative Agent for the Lenders party

to the Credit Agreement referred to below

 

National City Bank of Pennsylvania

Attn: Agent Services

Locator No. 01-3028

629 Euclid Avenue

Cleveland, Ohio 44114

 

  Attention:  Letter of Credit Operations

 

Ladies and Gentlemen:

 

The undersigned, Calgon Carbon Corporation (the “Borrower”), refers to the
Credit Agreement, dated as of February 18, 2004 (as amended, modified or
supplemented from time to time, the “Credit Agreement,” the capitalized terms
defined therein being used herein as therein defined), among the Borrower, the
financial institutions from time to time party thereto (the “ Lenders”), and
National City Bank of Pennsylvania, as Administrative Agent for such Lenders.

 

The undersigned hereby requests that                                         
    , as a Letter of Credit Issuer, issue a Letter of Credit on
                            , 200_ (the “Date of Issuance”) in the aggregate
amount of [U.S.$                ] [amount in specified Alternative Currency],
for the account of                                 .

 

The beneficiary of the requested Letter of Credit will be
                                ,3 and such Letter of Credit will be in support
of                                 4 and will have a stated termination date of
                                .5

 

The undersigned hereby certifies that after giving effect to the requested
issuance of the Letter of Credit:

 

  (i) $                     principal amount of General Revolving Loans will be
outstanding; and

 

  (ii) the Letter of Credit Outstandings will be $                    .

--------------------------------------------------------------------------------

1 Letter of Request Number.

 

2 Date of Letter of Request (at least five Business Days prior to the Date of
Issuance or such lesser number as may be agreed by the relevant Letter of Credit
Issuer).

 

--------------------------------------------------------------------------------

3 Insert name and address of beneficiary.

 

4 Insert description of the supported obligations, name of agreement and/or the
commercial transaction to which this Letter of Credit Request relates.

 

5 Insert last date upon which drafts may be presented (which may not be beyond
the 15th Business Day next preceding the Revolving Maturity Date).

 

--------------------------------------------------------------------------------

The undersigned hereby certifies that the following statements are true on the
date hereof, and will be true on the Date of Issuance:

 

(A) the representations and warranties of the Borrower contained in the Credit
Agreement and the other Credit Documents are and will be true and correct in all
material respects, before and after giving effect to the Proposed Borrowing and
to the application of the proceeds thereof, as though made on such date, except
to the extent that such representations and warranties expressly relate to an
earlier specified date, in which case such representations and warranties were
true and correct in all material respects as of the date when made; and

 

(B) no Default or Event of Default has occurred and is continuing, or would
result after giving effect to the issuance of the Letter of Credit requested
hereby.

 

Copies of all documentation with respect to the supported transaction are
attached hereto.

 

Very truly yours,

CALGON CARBON CORPORATION

By:

       

--------------------------------------------------------------------------------

Name:

       

--------------------------------------------------------------------------------

Title:

       

--------------------------------------------------------------------------------

 

ACKNOWLEDGED AND AGREED TO BY:

NATIONAL CITY BANK OF PENNSYLVANIA

By:

       

--------------------------------------------------------------------------------

Name:

       

--------------------------------------------------------------------------------

Title:

       

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

EXHIBIT C

 

--------------------------------------------------------------------------------

 

FORM OF

 

CORPORATE CERTIFICATE

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

CALGON CARBON CORPORATION

 

Corporate Certificate

 

The undersigned certifies that he is the Secretary of CALGON CARBON CORPORATION,
a Delaware corporation (the “ Company”), and that as such he is authorized to
execute and deliver this Certificate on behalf of the Company, and further
certifies that:

 

(1) Filing of Charter Documents. No corporate document amending or otherwise
modifying the Company’s certificate of incorporation has been filed with the
Secretary of State of Delaware since                     .1 Attached hereto as
Exhibit A is a copy of the Company’s Certificate of Incorporation, certified by
the Delaware Secretary of State as of a recent date.

 

(2) No Proceedings for Amendments, Merger, etc. No proceeding for the amendment
of the Certificate of Incorporation of the Company, or for the merger,
consolidation, sale of substantially all of the assets and business, liquidation
or dissolution of the Company has been taken on or since such date or is
pending.

 

(3) Organization and Standing. Attached hereto as Exhibit B is a long-form good
standing certificate, dated as of a recent date, from the Delaware Secretary of
State evidencing that the Company is validly existing in good standing under the
laws of the State of Delaware. Attached hereto as Exhibit C are certificates,
each dated as of a recent date, evidencing the Company’s good standing as a
foreign corporation in the following jurisdictions:                     .

 

(4) Bylaws. Attached hereto as Exhibit D is a complete and correct copy of the
Bylaws of the Company, as in effect since                     ,2 and thereafter
to and including the date hereof.

 

(5) Resolutions. Attached hereto as Exhibit E is a complete and correct copy of
resolutions duly adopted by the duly elected Directors of the Company at a
meeting duly called and held on                     , 2004, at which a quorum
was present and acting throughout.3 Such resolutions have not been amended,
modified or rescinded and are in full force and effect on the date hereof. Such
resolutions constitute all of the resolutions adopted by the Directors of the
Company incident to the transactions contemplated by the Credit Agreement (the
“Credit Agreement;” with capitalized terms used herein without definition having
the respective meanings ascribed thereto in the Credit Agreement, dated as of
February 18, 2004, among the

--------------------------------------------------------------------------------

1 Insert the date of filing of the last document affecting the charter of the
Company as identified in a long form good standing certificate or certified copy
of the charter and all amendments of the Company.

 

2 Insert a date prior to the execution of any documents incident to the
transaction.

 

3 If the resolutions have been adopted by written consent, the following
alternative is suggested:

 

Attached hereto as Exhibit B is a complete and correct copy of resolutions duly
adopted by the duly elected Directors of the Company by unanimous written
consent dated [as of]                     , 2004.

 

If the resolutions have been adopted by a committee of Directors, the following
is suggested:

 

Attached hereto as Exhibit B is a complete and correct copy of resolutions duly
adopted by the duly elected [Executive] Committee of the Directors of the
Company at a meeting duly called and held on                     , 2004, at
which a quorum was present and acting throughout. Attached hereto as Exhibit C
is a complete and correct copy of resolutions duly adopted by the duly elected
Directors of the Company at a meeting duly called and held on
                    , 2004, at which a quorum was present and acting throughout,
which resolutions set forth the powers of the [Executive] Committee of the
Directors of the Company.

 

--------------------------------------------------------------------------------

Company, the financial institutions named as Lenders therein, and National City
Bank of Pennsylvania, as Administrative Agent for the Lenders under the Credit
Agreement). The execution, delivery and performance by the Company of the Credit
Agreement, and all other documents to which the Company is to be a party as
contemplated by the Credit Agreement, have been duly authorized by such
resolutions.

 

(6) Incumbency. Each of the following persons now is and at all times since
prior to                     ,4 has been a duly elected or appointed officer of
the Company, holding the office or offices in the Company set opposite his or
her name below, and that the signature of each such person set opposite his or
her name below is his or her own true original or facsimile signature:

 

Name

--------------------------------------------------------------------------------

  

Title

--------------------------------------------------------------------------------

 

Signature

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

  

President and Chief Executive

Officer

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

  

Vice President & Chief Financial Officer

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

  

Treasurer

 

 

--------------------------------------------------------------------------------

Michael J. Mocniak

  

Vice President, General Counsel and Secretary

           

--------------------------------------------------------------------------------

 

IN WITNESS WHEREOF, the undersigned has duly executed and delivered this
Certificate on behalf of the Company on the date specified below.

 

 

--------------------------------------------------------------------------------

Name:

  Michael J. Mocniak     Vice President, General Counsel and Secretary

 

Dated: February 18, 2004

 

The undersigned, one of the officers named in the foregoing Certificate, hereby
confirms such Certificate as of the date hereof.

 

 

--------------------------------------------------------------------------------

Name:

       

--------------------------------------------------------------------------------

Title:

       

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

4 Insert a date prior to the execution of any documents incident to the
transaction.

 

--------------------------------------------------------------------------------

EXHIBIT D

 

--------------------------------------------------------------------------------

 

FORM OF

 

SOLVENCY CERTIFICATE

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

SOLVENCY CERTIFICATE

 

CALGON CARBON CORPORATION, a Delaware corporation (the “Borrower”), hereby
certifies that the officer executing this Solvency Certificate is the Chief
Financial Officer of the Borrower and that such officer is duly authorized to
execute this Solvency Certificate, which is hereby delivered on behalf of the
Borrower pursuant to section 7.1(g) of the Credit Agreement, dated as of
February 18, 2004 (as amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”; terms defined or referenced therein and not
otherwise defined or referenced herein being used herein as therein defined or
referenced), among the Borrower, the Lenders named therein, and National City
Bank of Pennsylvania, as Administrative Agent.

 

The Borrower further certifies that such officer is generally familiar with the
properties, businesses and assets of the Borrower and has carefully reviewed the
Credit Documents and the contents of this Solvency Certificate and, in
connection herewith, has reviewed such other documentation and information and
has made such investigations and inquiries as the Borrower and such officer deem
necessary and prudent therefor. The Borrower further certifies that the
financial information and assumptions that underly and form the basis for the
representations made in this Solvency Certificate were reasonable when made and
were made in good faith and continue to be reasonable as of the date hereof.

 

The Borrower understands that the Lenders are relying on the truth and accuracy
of this Solvency Certificate in connection with the Credit Documents.

 

The Borrower hereby further certifies that:

 

1. The Borrower has reviewed the Financial Projections that were prepared on the
basis of the estimates and assumptions stated therein, a copy of that Financial
Projections were furnished to the Lenders. The Financial Projections were
prepared in good faith and represent reasonable estimates of future financial
performance and are reasonable in light of the business conditions existing on
the date hereof. However, the Borrower can provide no assurances as to the
outcome of any such projections. On the date hereof, immediately before and
immediately after giving effect to the Contemplated Transactions, to the best of
the Borrower’s knowledge, the fair value of the property and assets of the
Borrower is greater than the total amount of liabilities (including contingent,
subordinated, absolute, fixed, matured or unmatured and liquidated or
unliquidated liabilities) of the Borrower.

 

2. On the date hereof, the present fair salable value of the property and assets
of the Borrower exceeds the amount that will be required to pay the probable
liabilities of the Borrower on its debts as they become absolute and matured.

 

3. The Borrower does not currently intend or believe that it will incur debts
and liabilities that will be beyond its ability to pay as such debts and
liabilities mature.

 

4. On the date hereof, the Borrower is not engaged in business or in a
transaction, and is not about to engage in business or in a transaction, for
that its property and assets would constitute unreasonably small capital.

 

5. The Borrower does not intend to hinder, delay or defraud either present or
future creditors or any other person to which the Borrower is or, on or after
the date hereof, will become indebted.

 

--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the Borrower has caused this Solvency Certificate to be
executed by its Chief Financial Officer thereunto duly authorized, on and as of
this 18th day of February, 2004.

 

CALGON CARBON CORPORATION

By:        

--------------------------------------------------------------------------------

Name:

       

--------------------------------------------------------------------------------

Title:

       

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

EXHIBIT E

 

--------------------------------------------------------------------------------

 

FORM OF

 

ASSIGNMENT AGREEMENT

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

ASSIGNMENT AGREEMENT

 

DATE:                     

 

Reference is made to the Credit Agreement described in Item 2 of Annex I annexed
hereto (as such Credit Agreement may hereafter be amended, modified or
supplemented from time to time, the “Credit Agreement”). Unless defined in Annex
I attached hereto, terms defined in the Credit Agreement are used herein as
therein defined.

 

                     (the “Assignor”) and                  (the “Assignee”)
hereby agree as follows:

 

1. The Assignor hereby sells and assigns to the Assignee without recourse and
without representation or warranty (other than as expressly provided herein),
and the Assignee hereby purchases and assumes from the Assignor, that interest
in and to all of the Assignor’s rights and obligations under the Credit
Agreement as of the date hereof that represents the percentage interest
specified in Item 4 of Annex I (the “Assigned Share”) of all of Assignor’s
outstanding rights and obligations under the Credit Agreement indicated in Item
4 of Annex I, including, without limitation, all rights and obligations with
respect to the Assigned Share of the Assignor’s Commitment and of the Loans and
the Notes held by the Assignor. After giving effect to such sale and assignment,
the Assignee’s Commitment will be as set forth in Item 4 of Annex I.

 

2. The Assignor (i) represents and warrants that it is the legal and beneficial
owner of the interest being assigned by it hereunder, that such interest is free
and clear of any liens or security interests, and that it is duly authorized to
enter into and perform the terms of this Assignment Agreement; (ii) makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the
Credit Agreement or the other Credit Documents or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Credit
Agreement or the other Credit Documents or any other instrument or document
furnished pursuant thereto; and (iii) makes no representation or warranty and
assumes no responsibility with respect to the financial condition of the
Borrower or any of its Subsidiaries or the performance or observance by the
Borrower of any of its obligations under the Credit Agreement or the other
Credit Documents or any other instrument or document furnished pursuant thereto.

 

3. The Assignee (i) represents and warrants that it is duly authorized to enter
into and perform the terms of this Assignment Agreement; (ii) confirms that it
has received a copy of the Credit Agreement and the other Credit Documents,
together with copies of the financial statements referred to therein, and such
other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Assignment Agreement; (iii)
agrees that it will, independently and without reliance upon the Administrative
Agent, the Assignor or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Credit Agreement; (iv)
appoints and authorizes the Administrative Agent to take such action as agent on
its behalf and to exercise such powers under the Credit Agreement and the other
Credit Documents as are delegated to the Administrative Agent by the terms
thereof, together with such powers as are reasonably incidental thereto; [and]
(v) agrees that it will perform in accordance with their terms all of the
obligations that by the terms of the Credit Agreement are required to be
performed by it as a Lender[; and (vi) to the extent legally entitled to do so,
attaches the forms described in section 6.4(b)(ii) of the Credit Agreement5.

--------------------------------------------------------------------------------

5 If the Assignee is organized under the laws of a jurisdiction outside the
United States.

 

--------------------------------------------------------------------------------

4. Following the execution of this Assignment Agreement by the Assignor and the
Assignee, an executed original hereof (together with all attachments) will be
delivered to the Administrative Agent. The effective date of this Assignment
Agreement shall be the date of execution hereof by the Assignor, the Assignee
and the consent hereof by the Administrative Agent and the receipt by the
Administrative Agent of the administrative fee referred to in section 13.4(c) of
the Credit Agreement, unless otherwise specified in Item 5 of Annex I hereto
(the “Settlement Date”).

 

5. Upon the delivery of a fully executed original hereof to the Administrative
Agent, as of the Settlement Date, (i) the Assignee shall be a party to the
Credit Agreement and, to the extent provided in this Assignment Agreement, have
the rights and obligations of a Lender thereunder and under the other Credit
Documents, and (ii) the Assignor shall, to the extent provided in this
Assignment Agreement, relinquish its rights (except any rights to indemnity by
the Borrower) and be released from its obligations under the Credit Agreement
and the other Credit Documents.

 

6. It is agreed that upon the effectiveness hereof, the Assignee shall be
entitled to (x) all interest on the Assigned Share of the Loans at the rates
specified in Item 6 of Annex I, and (y) all Facility Fee (if applicable) on the
Assigned Share of the Commitment at the rate specified in Item 7 of Annex I,
that, in each case, accrue on and after the Settlement Date, such interest and,
if applicable, Facility Fees, to be paid by the Administrative Agent, upon
receipt thereof from the Borrower, directly to the Assignee. It is further
agreed that all payments of principal made by the Borrower on the Assigned Share
of the Loans that occur on and after the Settlement Date will be paid directly
by the Administrative Agent to the Assignee. Upon the Settlement Date, the
Assignee shall pay to the Assignor an amount specified by the Assignor in
writing which represents the Assigned Share of the principal amount of the
respective Loans made by the Assignor pursuant to the Credit Agreement that are
outstanding on the Settlement Date, net of any closing costs, and that are being
assigned hereunder. The Assignor and the Assignee shall make all appropriate
adjustments in payments under the Credit Agreement for periods prior to the
Settlement Date directly between themselves on the Settlement Date.

 

7. THIS ASSIGNMENT AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA.

 

* * *

 

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

 

[NAME OF ASSIGNOR],

as Assignor

     

[NAME OF ASSIGNEE],

as Assignee

By:           By:        

--------------------------------------------------------------------------------

         

--------------------------------------------------------------------------------

Vice President

     

Vice President

 

Acknowledged and agreed.

 

NATIONAL CITY BANK OF PENNSYLVANIA,

as Administrative Agent

By:        

--------------------------------------------------------------------------------

Vice President

 

--------------------------------------------------------------------------------

ANNEX I

FOR

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

1.      The Borrower:

 

 

CALGON CARBON CORPORATION

 

 

2.      Name and Date of Credit Agreement:

 

 

Credit Agreement, dated as of February 18, 2004, among Calgon Carbon
Corporation, the Lenders from time to time party thereto, and National City Bank
of Pennsylvania, as Administrative Agent.

 

   

3.      Date of Assignment Agreement:

 

 

                     ,             

 

 

4.      Amounts (as of date of item #3 above):

        

                 General
Revolving
Commitment

--------------------------------------------------------------------------------

    General
Revolving
Loans

--------------------------------------------------------------------------------

    Swing Line
Revolving
Commitment

--------------------------------------------------------------------------------

    Swing
Line
Revolving
Loans

--------------------------------------------------------------------------------

 

Aggregate Amount for all Lenders

   $                $                $                $             

Assigned Share

                %                %                %                %

Amount of Assigned Share

   $                $                $                $             

Amount Retained by Assignor

   $                $                $                $             

5.      Settlement Date:

                       ,               

6.      Rate of Interest to the Assignee:

  As set forth in section 2.8 of the Credit Agreement (unless otherwise agreed
to by the Assignor and the Assignee).6   

7.      Facility Fee:

  As set forth in section 4.1 of the Credit Agreement (unless otherwise agreed
to by the Assignor and the Assignee).7   

--------------------------------------------------------------------------------

 

6 The Borrower and the Administrative Agent shall direct the entire amount of
the interest to the Assignee at the rate set forth in section 2.8 of the Credit
Agreement, with the Assignor and Assignee effecting any agreed upon sharing of
interest through payments by the Assignee to the Assignor.

 

7 The Borrower and the Administrative Agent shall direct the entire amount of
the Facility Fee to the Assignee at the rate set forth in section 3.1 of the
Credit Agreement, with the Assignor and the Assignee effecting any agreed upon
sharing of Facility Fee through payment by the Assignee to the Assignor.

 

--------------------------------------------------------------------------------

8. Notices:

 

ASSIGNOR:   ASSIGNEE: Attention:                                           
Attention:                                          Telephone:   Telephone:
Facsimile:   Facsimile:

 

9. Payment Instructions:

 

ASSIGNOR:   ASSIGNEE: ABA No.:   ABA No.: Account No.:   Account No.: Ref.:
Calgon Carbon Corporation   Ref.: Calgon Carbon Corporation
Attention:                                           
Attention:                                          Telephone:   Telephone:
Facsimile:   Facsimile:

 

--------------------------------------------------------------------------------

EXHIBIT F

 

--------------------------------------------------------------------------------

 

FORM OF

 

SECTION 6.4(B)(II) CERTIFICATE

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

SECTION 6.4(B)(ii) CERTIFICATE

 

Reference is hereby made to the Credit Agreement, dated as of February 18, 2004,
among Calgon Carbon Corporation, the financial institutions party thereto from
time to time, and National City Bank of Pennsylvania, as Administrative Agent
(the “Credit Agreement”). Pursuant to the provisions of section 6.4(b)(ii) of
the Credit Agreement, the undersigned hereby certifies that it is not a “bank”
as such term is used in section 881(c)(3)(A) of the Internal Revenue Code of
1986, as amended.

 

[NAME OF BANK] By:        

--------------------------------------------------------------------------------

Name:

       

--------------------------------------------------------------------------------

Title:

       

--------------------------------------------------------------------------------

 

Dated:                     

 

--------------------------------------------------------------------------------

EXHIBIT G

 

--------------------------------------------------------------------------------

 

FORM OF

 

SUBSIDIARY GUARANTY

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

CREDIT AGREEMENT

 

dated as of

February 18, 2004

 

Among

 

CALGON CARBON CORPORATION

as Borrower,

 

THE LENDING INSTITUTIONS NAMED THEREIN

as Lenders,

 

NATIONAL CITY BANK OF PENNSYLVANIA

as a Lender, the Swing Line Lender and

as Administrative Agent,

 

--------------------------------------------------------------------------------

TABLE OF CONTENTS

 

          Page

--------------------------------------------------------------------------------

SECTION 1.   

DEFINITIONS AND TERMS

   1

1.1.

  

Certain Defined Terms

   1

1.2.

  

Computation of Time Periods

   22

1.3.

  

Accounting Terms

   22

1.4.

  

Terms Generally

   22

1.5.

  

Currency Equivalents

   23 SECTION 2.   

AMOUNT AND TERMS OF LOANS

   23

2.1.

  

Commitments for Loans

   23

2.2.

  

Minimum Borrowing Amounts, etc.; Pro Rata Borrowings

   24

2.3.

  

Procedures for Borrowing

   24

2.4.

  

Disbursement of Funds

   26

2.5.

  

Refunding of, or Participation in, Swing Line Revolving Loans

   26

2.6.

  

Notes and Loan Accounts

   28

2.7.

  

Voluntary Conversions of Dollar Denominated Loans; Redenomination of Loans

   29

2.8.

  

Interest

   30

2.9.

  

Selection and Continuation of Interest Periods

   32

2.10.

  

Increased Costs, Illegality, etc.

   34

2.11.

  

Breakage Compensation

   35

2.12.

  

Change of Lending Office; Replacement of Lenders

   36 SECTION 3.   

LETTERS OF CREDIT

   37

3.1.

  

Letters of Credit

   37

3.2.

  

Letter of Credit Requests; Notices of Issuance

   37

3.3.

  

Agreement to Repay Letter of Credit Drawings

   38

3.4.

  

Letter of Credit Participations

   39

3.5.

  

Increased Costs

   41

3.6.

  

Guaranty of Subsidiary Letter of Credit Obligations

   41 SECTION 4.   

FEES

   43

4.1.

  

Facility Fee

   43

4.2.

  

Letter of Credit Fees

   44

4.3.

  

Facing Fees

   44

4.4.

  

Letter of Credit Administrative Fees

   44

4.5.

  

Other Fees

   44

4.6.

  

Computations of Fees

   44

 

i

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TABLE OF CONTENTS

(continued)

 

          Page

--------------------------------------------------------------------------------

SECTION 5.   

REDUCTIONS AND TERMINATION OF COMMITMENTS

   44

5.1.

  

Voluntary Termination/Reduction of Commitments

   44

5.2.

  

Mandatory Termination/Adjustments of Commitments, etc.

   45 SECTION 6.   

PAYMENTS

   45

6.1.

  

Voluntary Prepayments

   45

6.2.

  

Mandatory Prepayments

   46

6.3.

  

Method and Place of Payment

   48

6.4.

  

Net Payments

   49

6.5.

  

Late Charges

   50 SECTION 7.   

CONDITIONS PRECEDENT

   50

7.1.

  

Conditions Precedent at Closing Date

   50

7.2.

  

Conditions Precedent to All Loans

   53 SECTION 8.   

REPRESENTATIONS AND WARRANTIES

   53

8.1.

  

Corporate Status, etc.

   53

8.2.

  

Subsidiaries

   53

8.3.

  

Corporate Power and Authority, etc.

   53

8.4.

  

No Violation

   54

8.5.

  

Governmental Approvals

   54

8.6.

  

Litigation

   54

8.7.

  

Use of Proceeds; Margin Regulations

   54

8.8.

  

Financial Statements, etc.

   54

8.9.

  

No Material Adverse Change

   55

8.10.

  

Tax Returns and Payments

   55

8.11.

  

Title to Properties, etc.

   55

8.12.

  

Lawful Operations, etc.

   55

8.13.

  

Environmental Matters

   56

8.14.

  

Compliance with ERISA

   56

8.15.

  

Intellectual Property, etc.

   57

8.16.

  

Investment Company Act, etc.

   57

8.17.

  

Burdensome Contracts; Labor Relations

   57

8.18.

  

Existing Indebtedness

   57

8.19.

  

True and Complete Disclosure

   57

8.20.

  

Insurance

   58

 

ii

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TABLE OF CONTENTS

(continued)

 

          Page

--------------------------------------------------------------------------------

SECTION 9.   

AFFIRMATIVE COVENANTS

   58

9.1.

  

Reporting Requirements

   58

9.2.

  

Books, Records and Inspections

   61

9.3.

  

Insurance

   61

9.4.

  

Payment of Taxes and Claims

   61

9.5.

  

Corporate Franchises

   61

9.6.

  

Good Repair

   61

9.7.

  

Compliance with Statutes, etc.

   62

9.8.

  

Compliance with Environmental Laws

   62

9.9.

  

Fiscal Years, Fiscal Quarters

   62

9.10.

  

Hedge Agreements, etc.

   63

9.11.

  

Most Favored Covenant Status

   63

9.12.

  

Senior Debt

   63

9.13.

  

Certain Subsidiaries to Join in Subsidiary Guaranty

   63 SECTION 10.   

NEGATIVE COVENANTS

   64

10.1.

  

Changes in Business

   64

10.2.

  

Consolidation, Merger, Acquisitions, Asset Sales, etc.

   64

10.3.

  

Liens

   66

10.4.

  

Indebtedness

   67

10.5.

  

Advances, Investments, Loans and Guaranty Obligations

   68

10.6.

  

Dividends, etc.

   69

10.7.

  

Asset Coverage Percentage

   70

10.8.

  

Ratio of Consolidated Total Debt to Consolidated EBITDA

   70

10.9.

  

Interest Coverage Ratio

   70

10.10.

  

Minimum Consolidated Net Worth

   70

10.11.

  

Prepayments and Refinancings of Other Debt, etc.

   70

10.12.

  

Limitation on Certain Restrictive Agreements

   70

10.13.

  

Transactions with Affiliates

   71

10.14.

  

Plan Terminations, Minimum Funding, etc.

   71 SECTION 11.   

EVENTS OF DEFAULT

   71

11.1.

  

Events of Default

   71

11.2.

  

Acceleration, etc.

   73

11.3.

  

Application of Liquidation Proceeds

   73

 

iii

--------------------------------------------------------------------------------

TABLE OF CONTENTS

(continued)

 

          Page

--------------------------------------------------------------------------------

SECTION 12.   

THE ADMINISTRATIVE AGENT

   74

12.1.

  

Appointment

   74

12.2.

  

Delegation of Duties

   74

12.3.

  

Exculpatory Provisions

   74

12.4.

  

Reliance by Administrative Agent

   75

12.5.

  

Notice of Default

   75

12.6.

  

Non-Reliance

   75

12.7.

  

Indemnification

   76

12.8.

  

The Administrative Agent in Individual Capacity

   76

12.9.

  

Successor Administrative Agent

   76

12.10.

  

Other Agents

   76 SECTION 13.   

MISCELLANEOUS

   76

13.1.

  

Payment of Expenses etc

   76

13.2.

  

Right of Setoff

   78

13.3.

  

Notices

   78

13.4.

  

Benefit of Agreement

   78

13.5.

  

No Waiver: Remedies Cumulative

   81

13.6.

  

Payments Pro Rata

   82

13.7.

  

Calculations: Computations

   82

13.8.

  

Governing Law; Submission to Jurisdiction; Venue; Waiver of Jury Trial

   82

13.9.

  

Counterparts

   83

13.10.

  

Effectiveness; Integration

   83

13.11.

  

Headings Descriptive

   83

13.12.

  

Amendment or Waiver

   84

13.13.

  

Survival

   84

13.14.

  

Domicile of Loans

   84

13.15.

  

Confidentiality

   84

13.16.

  

Lender Register

   85

13.17.

  

General Limitation of Liability

   85

13.18.

  

No Duty

   85

13.19.

  

Lenders and Agents Not Fiduciary to Borrower, etc.

   86

13.20.

  

Survival of Representations and Warranties

   86

13.21.

  

Independence of Covenants

   86

 

iv

--------------------------------------------------------------------------------

TABLE OF CONTENTS

(continued)

 

              Page

--------------------------------------------------------------------------------

ANNEX I   —    INFORMATION AS TO LENDERS      ANNEX II   —    INFORMATION AS TO
SUBSIDIARIES      ANNEX III   —    DESCRIPTION OF EXISTING INDEBTEDNESS     
ANNEX IV   —    DESCRIPTION OF EXISTING LIENS      ANNEX V   —    DESCRIPTION OF
EXISTING ADVANCES, LOANS, INVESTMENTS AND GUARANTEES      ANNEX VI   —   
DESCRIPTION OF EXISTING LETTERS OF CREDIT      ANNEX VII   —    DESCRIPTION OF
MATERIAL RECOVERY EVENTS      ANNEX VIII   —    DESCRIPTION OF ALTERNATIVE
CURRENCIES      ANNEX IX   —    DESCRIPTION OF CONTINGENT LIABILITIES WITH
RESPECT TO POST-RETIREMENT WELFARE BENEFIT PLANS      ANNEX X   —    DESCRIPTION
OF DOCUMENTS REQUIRED TO BE SCHEDULED PURSUANT TO SECTION 9.11      ANNEX XI   —
   ENVIRONMENTAL MATTERS      EXHIBIT A-1   —    FORM OF GENERAL REVOLVING NOTE
     EXHIBIT A-2   —    FORM OF SWING LINE REVOLVING NOTE      EXHIBIT B-1   —
   FORM OF NOTICE OF BORROWING      EXHIBIT B-2   —    FORM OF NOTICE OF
CONVERSION      EXHIBIT B-3   —    FORM OF NOTICE OF REDENOMINATION     
EXHIBIT B-4   —    FORM OF LETTER OF CREDIT REQUEST      EXHIBIT C   —    FORM
OF CORPORATE CERTIFICATE      EXHIBIT D   —    FORM OF SOLVENCY CERTIFICATE     
EXHIBIT E   —    FORM OF ASSIGNMENT AGREEMENT      EXHIBIT F   —    FORM OF
SECTION 6.4(b)(ii) CERTIFICATE      EXHIBIT G   —    FORM OF SUBSIDIARY GUARANTY
    

 

v

--------------------------------------------------------------------------------

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

 

CALGON CARBON CORPORATION       NATIONAL CITY BANK OF PENNSYLVANIA        
Individually as a Lender, and as a Letter of Credit Issuer, the Swing Line
Lender and Administrative Agent By:   /s/    LEROY M. BALL               By:    
   

--------------------------------------------------------------------------------

         

--------------------------------------------------------------------------------

Name:

  Leroy. M. Ball      

Name:

  Lori B. Shure

Title:

  Chief Financial Officer      

Title:

  Vice President

 

--------------------------------------------------------------------------------

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

 

CALGON CARBON CORPORATION       NATIONAL CITY BANK OF PENNSYLVANIA        
Individually as a Lender, and as a Letter of Credit Issuer, the Swing Line
Lender and Administrative Agent By:           By:   /s/    LORI B. SHURE        
   

--------------------------------------------------------------------------------

         

--------------------------------------------------------------------------------

Name:

  Leroy. M. Ball      

Name:

  Lori B. Shure

Title:

  Chief Financial Officer      

Title:

  Vice President

 

--------------------------------------------------------------------------------

FIFTH THIRD BANK By:   /s/    Illegible            

--------------------------------------------------------------------------------

Name:   Illegible Title:   Vice President

 

--------------------------------------------------------------------------------

FLEET NATIONAL BANK By:   /s/    Illegible            

--------------------------------------------------------------------------------

Name:   Illegible Title:   S.V.P.

 

4

--------------------------------------------------------------------------------

PNC BANK NATIONAL ASSOCIATION By:   /s/    ROBERT S. FOUST            

--------------------------------------------------------------------------------

Name:   Robert S. Foust Title:   Vice President

 

--------------------------------------------------------------------------------

WACHOVIA BANK, NATIONAL ASSOCIATION By:   /s/    PATRICK J. KAUFMANN            

--------------------------------------------------------------------------------

    Patrick J. Kaufmann     Vice President

 

--------------------------------------------------------------------------------

ANNEX II

INFORMATION AS TO SUBSIDIARIES

 

Name of Subsidiary

--------------------------------------------------------------------------------

   Type of Organization

--------------------------------------------------------------------------------

  

Jurisdiction

Where Organized

--------------------------------------------------------------------------------

  

Percentage of Outstanding Stock or
Other Equity Interests Owned (Owned by the
Borrower unless otherwise noted)

--------------------------------------------------------------------------------

Advanced Separation Technologies Inc.

   Corporation    Florida    100%

Solarchem Environmental Systems Inc.

   Corporation    Nevada    100%

Calgon Carbon Investments Inc.

   Corporation    Deleware    100%

Chemviron Carbon Ltd.

   Corporation    United Kingdom    100% (Calgon Carbon Investments, Inc)

Chemviron Carbon GmbH

   Partnership    Germany    99%* (Calgon Carbon Investments, Inc)

Charcoal Cloth Int’L Ltd.

   Corporation    United Kingdom    100% (Chemviron Carbon Ltd.)

Charcoal Cloth Ltd.

   Corporation    United Kingdom    100% (Charcoal Cloth Infl Ltd.)

Calgon Carbon Canada, Inc

   Corporation    Canada    100% (Calgon Carbon Investments, Inc)

Calgon Carbon Asia

   Corporation    Singapore    100%

Datong Carbon Corporation

   Corporation    China    80%

Calgon Carbon Tainjin, Ltd.

   Corporation    China    100%

Current Proposed Structure: Not Final

              

BSC Columbus, LLC

   LLC    Deleware    100% (Calgon Carbon Corporation)

CCC Columbus, LLC

   LLC    Deleware    100% (Calgon Carbon Corporation)

CCC Distribution, LLC

   LLC    Deleware    100% (Calgon Carbon Corporation)

Waterlink UK Holdings, Ltd.

   Corporation    United Kingdom    100% (Chemviron Carbon, Ltd.)

Sutcliffe Croftshaw Ltd.

   Corporation    United Kingdom    100% (Waterlink UK Holdings Ltd))

Sutcliffe Speakman Ltd.

   Corporation    United Kingdom    100% (Waterlink UK Holdings Ltd))

Sutcliffe Speakman Carbons Ltd.

   Corporation    United Kingdom    100% (Waterlink UK Holdings Ltd))

Lakeland Processing Ltd.

   Corporation    United Kingdom    100% (Sutcliffe Speakman Ltd)

Sutcliffe Speakmanco 5 Ltd.

   Corporation    United Kingdom    100% (Sutcliffe Speakman Ltd)

 

* The remaining 1% is owned by the Borrower

 

--------------------------------------------------------------------------------

ANNEX III

DESCRIPTION OF EXISTING INDEBTEDNESS

 

LENDER

--------------------------------------------------------------------------------

 

OBLIGOR

--------------------------------------------------------------------------------

 

DESCRIPTION

--------------------------------------------------------------------------------

  AVAILABLE
AMOUNT

--------------------------------------------------------------------------------

  CURRENCY

--------------------------------------------------------------------------------

  EXISTING
DEBT

--------------------------------------------------------------------------------

   

Mississippi Business

Finance Corporation

  Calgon Carbon Corporation   Industrial Revenue Bonds   3,000,000   USD   $
3,000,000     Bank Brussels Lambert   Chemviron Carbon  
Line of Credit (includes Bank Guarantees)   4,000,000   EUR     1,984,848  
Bank Guarantees only
Listed AnnexVI Barclays Bank   Chemviron Carbon Ltd.   Line of Credit
(Overdraft)   400,000   POUNDS     0     Royal Bank of Schotland   Sutcliffe
Speakman Ltd.   Invoice discounting arrangement   1,250,000   POUNDS     —    
as of January 31,
2004 Shanghai Pudong Development Bank   Datong Carbon Co. Ltd.   Line of Credit
  650,000 or
5,000,000 or RMB   USD   $ 604,000   12/15/2004 expiration Datong Carbon Company
Ltd.   Datong Commercial Bank   Short-term Guarantee   80% 3,000,000 RMB   USD  
$ 290,000   expires 6/22/04 Bank Mendes Gans nv   Calgon Carbon Corporation  
Corporate Guarantee   no amount   USD     0     Letters of Credit   Calgon
Carbon Corporation   listed in Annex VI   30,000,000   USD   $ 13,854,003  
Letters of Credit Only
Listed AnnexVI Caterpillar, Inc   Calgon Carbon Corporation   Capital Lease -
equipment   as of 12/31/03   USD   $ 52,000     Dell Computer   Calgon Carbon
Corporation   Capital Lease - computer related   as of 12/31/03   USD   $
103,000     Ace Leasing SA   Chemviron Carbon (Brussels)   Capital Lease -
forklift   as of 12/31/03   USD   $ 51,000     Ace Leasing SA  
Chemviron Carbon (Brussels)   Capital Lease - forklift   as of 12/31/03   USD  
$ 31,000    

 

--------------------------------------------------------------------------------

Annex IV

 

Description of Existing Liens

 

CALGON CARBON CORPORATION

 

Pennsylvania Secretary of State

 

A. UCC Financing Statements

 

1.

  

Secured Party: S&T Bank

File Number:   31350634

File Date:         03/06/2000

     Cltrl   1 CCC 0997 Locomotive     

ASSIGNMENT

File Number: 31590759

File Date:       05/05/2000

2.

  

Secured Party: Dell Financial Services LP

File Number:   31370861

File Date:         03/10/2000

     Cltrl:   Equipment relating to lease #000176014-001 dated 3/3/2000

3.

  

Secured Party: Mita Copystar America Inc

File Number:   31511631

File Date:         04/17/2000

     Cltrl:   Specific Equipment

4.

  

Secured Party: Dell Financial Services LP

File Number:   31640116

File Date:         05/18/2000

     Cltrl:   Equipment relating to lease #000176014-001 dated 3/3/2000

5.

  

Secured Party: Bank of the West

File Number:   31680381

File Date:         05/30/2000

     Cltrl:   2 enc-l large encounter unit, 25 20’ Nimlock Graphics panels, 1
20’ Nimlock booth, 7 10’ Nimlock graphics panels, 1 10’ Nimlock booth, SF-412-01

6.

  

Secured Party: Toyota Motor Credit Corporation

File Number:    31940507

File Date:          08/09/2000

     Cltrl:   Three new Toyota forklifts model 7FDU25 S/N 60195,60200 & 60202
equipment to be located at 200 Neville Rd., Pittsburgh, PA 15225

 

--------------------------------------------------------------------------------

7.

  

Secured Party: Toyota Motor Credit Corporation

File Number:   33020605

File Date:         09/01/2000

     Cltrl:   New Toyota Forklift Model 7FDU25, S/N 60204, CAB-TS31 (2625)

8.

  

Secured Party: Maxus Leasing Group, Inc.

File Number:   33390977

File Date:         12/14/2000

     Cltrl:   1 Toshiba TLP 671 LCD Projector, Document Camera, 1 Toshiba TLP
670 LCD Projector Only, with all replacement parts, additions, repairs,
accessions & accessories incorporated therein and or affixed thereto. Maxus
Lease 1207-001

9.

  

Secured Party: Toyota Motor Credit Corp.

File Number:   33521133

File Date:         01/22/2001

     Cltrl:   Five (5) New Toyota Forklifts Model 7FGU25 S/N 63665, 63667,
63686, 63694

10.

  

Secured Party: Toyota Motor Credit Corp.

File Number:   33640628

File Date:         02/23/2001

     Cltrl:   Five new Toyota Forklifts model 7FGCU25, S/N 68435, 68472, 68444,
68614, 68498, S/N new Toyota forklift model 7FGU30, S/N 61584.

11.

  

Secured Party: Dell Financial Services LP

File Number:   33731053

File Date:         03/20/2001

     Cltrl:   All computer equipment and peripherals wherever located heretofore
and hereafter leased to Lessee by Lessor pursuant to that certain Maser Lease
Agreement # 176014 dated April 5, 2000, and any Schedule thereto, together with
all substitutions, additions, accessions and replacements thereto and thereof,
now or hereafter installed (see full collateral description)

12.

  

Secured Party: Toyota Motor Credit Corp

File Number:   34071443

File Date:         06/21/2001

     Cltrl:   One new Toyota forklift model 7FDU35 S/N 60081, Equipment to be
located at Pearl River Plant, 13121 Webre Road, Pearlington, MS 39572, County:
Hancock

13.

  

Secured Party: Caterpillar Financial Services Corporation

File Number:   34231285

File Date:         08/15/2001

 

     Cltrl   One Caterpillar 928G Wheel Loader S/N 6XRO6153 and substitutions,
replacements, additions & accessions thereto, now owned or hereafter acquired,
and proceeds thereof, Contr/Cr App# 29227

14.

  

Secured Party: Caterpillar Financial Services Corporation

File Number:   34271760

File Date:         08/28/2001

     Cltrl   One Caterpillar IT28G integrated Tool Carrier, S/N 8CRO1993 and
substitutions, replacements, additional & accessions thereto, now owned or
hereafter acquired, and proceeds thereof, this is a precautionary filing and is
Not to be deemed as an admission by any party that the lease agreement is other
than a true lease Contr/CrApp # A192742

 

2

--------------------------------------------------------------------------------

15.

  

Secured Party: Citicorp del Lease Inc. dba Citicorp Dealer Finance

File Number:   36521342

File Date:         08/08/2002

     Cltrl   one New Spanco crane model #10F1516B Serial #02062777000-Equipped
with two 5 ton Harrington electric chain hoists - equipment location :2954
Neville Road, Pittsburgh, Allegheny PA 1522

 

Allegheny County, PA

 

A. UCC Financing Statement

 

1.

  

Secured Party: S&T Bank

File Number:   2000-1664

File Date:         03/06/2000

     Cltrl:   (1) CCC 0997 Locomotive     

ASSIGNMENT

File Number: 00-1664

File Date:       05/04/2000

2.

  

Secured Party: Dell Financial Services, L.P.

File Number:   00-1801

File Date:         03/10/2000

     Cltrl:   Equipment relating to Lease #000176014-001 dated March 3, 2000

3.

  

Secured Party: Dell Financial Services, L.P.

File Number:   00-3648

File Date:         05/19/2000

     Cltrl:   Equipment relating to Lease #000176014-001 dated March 3, 2000

4.

  

Secured Party: Toyota Motor Credit Corporation

File Number:   00-5625

File Date:         08/10/2000

     Cltrl:   Three (3) New Toyota Forklifts, Model 7FDU25, S/Ns 60195, 60200 &
60202

5.

  

Secured Party: Toyota Motor Credit Corporation

File Number:   00-6205

File Date:         08/31/2000

     Cltrl:   New Toyota Forklift Model &DU25 S/N 60204 Cab- TS31 (2625)

6.

  

Secured Party: Maxus Leasing Group, Inc.

File Number:   00-8939

File Date:         12/20/2000

NOTE: Missing From Jurisdiction

7.

  

Secured Party: Toyota Motor Credit Corporation

File Number:   01-424

File Date:         01/22/2001

     Cltrl:   Five New Toyota Forklifts Model 7FGU25, S/N 63665, 63667, 63685,
63686, 63694

 

3

--------------------------------------------------------------------------------

8.

  

Secured Party: Maxus Leasing Group, Inc.

File Number:    01-536

File Date:         12/26/2001

     Cltrl:  

1 Toshiba TLP 671 Projector/Document Camera, 1 Toshiba TLP 670 LCD Projector
only, with all replacement, parts, additions, repairs, accessions & accessories
incorporated therein and/or affixed thereto Maxus Lease

1207-001

9.

  

Secured Party: Toyota Motor Credit Corporation

File Number:    01-1084

File Date:         02/22/2001

     Cltrl:   Five (5) New Toyota Forklifts Model 7FGCU25, S/N/
68435,68472,68444,68614,68498, One (1) New Toyota Forklift Model 7FGU30, S/N
61584

10.

  

Secured Party:  Dell Financial Services, L.P.

File Number:    01-1081

File Date:         03/26/2001

     Cltrl:   Equipment relating to Lease # 176014 dated April 5,2000

11.

  

Secured Party: Toyota Motor Credit Corporation

File Number:  01-3979

File Date:        06/21/2001

     Cltrl:   One (1) New Toyota Forklift Model 7FDU35 s/n 60081

 

Delaware Secretary of State

 

A. UCC Financing Statements

 

1.   

Secured Party: Toyota Motor Credit Corporation

File Number:  10645312

File Date:        07/05/2001

     Cltrl:   Three (3) New Toyota Forklifts Model 7FGU30, S/N’s 61988,
61995,62027 Equipment to be located at: Calgon Carbon Corporation N.I. Equipment
& Assembly Plant, 4301 Grand Ave., Gate #4, Pgh, PA 15225 2.   

Secured Party: Toyota Motor Credit Corporation

File Number:  20260434

File Date:        12/31/2001

     Cltrl:   One (1) New Toyota Forklift Model 7FDKU40, S/N 60211 Equipment to
be located at: 200 Neville Road, Pittsburgh, PA 15225 County: Allegheny 3.   

Secured Party: GE Capital

File Number:  21108202

File Date:        04/15/2002

     Cltrl:   The equipment described below and all equipment parts,
accessories, substitutions, additions, accessions and replacements thereto and
thereof, now or hereafter installed in, affixed to, or used in conjunction
therewith and the proceeds thereof, together with all installment payments,
insurance proceeds, other proceeds and payments due arising from or relating to
6- Savin 2545 Copier Systems AND see schedule attached #6724886013

 

4

--------------------------------------------------------------------------------

4.   

Secured Party: GE Capital

File Number:    21108327

File Date:          04/15/2002

     Cltrl:   The equipment described below and all equipment parts,
accessories, substitutions, additions, accessions and replacements thereto and
thereof, now or hereafter installed in, affixed to, or used in conjunction
therewith and the proceeds thereof, together with all installment payments,
insurance proceeds, other proceeds and payments due arising from or relating to
5- Savin 2545 Copier Systems AND see schedule attached #6724886014 5.   

Secured Party: Dollar Bank Leasing Corp.

File Number:    21223092

File Date:          04/29/2002

     Cltrl:   One (1) Toshiba TLP-B2 Ultra LCD Projector, soft carry case and 3
year warranty, s/n 11733408, complete with all present and future attachments,
accessories, exchanges, and accessions thereto, now existing or hereafter
arising and all accounts and general intangibles associates therewith or
resulting therefrom. 6.   

Secured Party: Trinity Capital Corporation

File Number:    21906837

File Date:          07/10/2002

     Cltrl:   All personal property leased or financed from Trinity Capital
Corporation including, but not limited to those items and proceeds thereof, set
forth in the agreement listed below and in any and all subsequent addendums and
to the agreement. Agreement #813394.

 

Texas Secretary of State

 

A. UCC Financing Statements

 

1.   

Secured Party: Pitney Bowes Credit Corporation

File Number:    9700106051

File Date:          05/21/1997

     Cltrl:   All equipment of whatever nature manufactured, sold or distributed
by Pitney Bowes Credit Inc. Monarch Marketing Systems, Inc., Pitney Bowes Credit
Corp., Dictaphone Corp. and subject to lease dated 3/24/1997 between Debtor and
Secured Party and all proceeds, additions thereto and replacements thereof LOC
5306824301. 2.   

Secured Party: Great America Leasing Corporation

File Number:    00649534

File Date:          12/27/2000

     Cltrl:   Merlin Magix Phone System per attached schedule of equipment. This
UCC-1 is filed pursuant to section 9-408 of the Uniform Commercial Code for
informational purposes only. This transaction is intended by the Lessor and
Lessee to be a lease. 133919-000.

 

California Secretary of State

 

A. UCC Financing Statements

 

1.   

Secured Party: ICX Corporation

File Number:    199727360759

File Date:          09/26/1997

     Cltrl:   Specific Equipment

 

5

--------------------------------------------------------------------------------

Florida Secretary of State

 

A. UCC Financing Statements

 

1.   

Secured Party: AT&T Credit Corporation

File Number:    920000071684

File Date:          04/10/1992

     Cltrl:   Legend Sold under Lease No. S402678 and all attachments,
accessories, additions, substitutions, products, replacements and rentals and
proceeds therefrom (including insurance proceeds) 2.   

Secured Party: ICX Corporation

File Number:    950000035460

File Date:          02/03/1995

     Cltrl:   Lessor is the owner and Lessee has possession and use of property
described above pursuant to a lease agreement dated 11-6-1992. Lessor and Lessee
in said lease to be a “true lease” and not a secured transaction.” Inclusion of
proceeds in this financing statement does not authorize to sell or otherwise
dispose of the property described above. 3.   

Secured Party: ICX Corporation

File Number:    9700000216586

File Date:          09/25/1997

     Cltrl:   Specific Equipment 4.   

Secured Party: Dell Financial Services, L.P.

File Number:    200000058875

File Date:          03/10/2000

     Cltrl:   All computer equipment and peripheral (collectively “Equipment”)
wherever located heretofore or hereafter lease to Lessee by Lessor pursuant to
that certain Equipment Lease #000176014-0001 dated March 3, 2000,” Equipment:
includes without limitation, all equipment described above, together with all
substitutions, additions, accessions and replacements thereto, and thereof, now
or hereafter installed in, affixed to, or used in, conjunction with the
Equipment and proceeds thereof together with all rental or installment payments,
insurance proceeds, other proceeds and payments due and to become due and
arising from or relating to said real estate.

 

Kentucky Secretary of State

 

A. UCC Financing Statement

 

1.   

Secured Party: Apollo Oil, LLC

File Number:    2002-1872554-36

File Date:          10/01/2002

     Cltrl:   8-275 Gallon Tanks, 2-Blackmer #BR-414 Hand Pumps, 6-1 1/5” ball
valves

 

Boyd County, KY

 

A. UCC Financing Statement

 

1.   

Secured Party: S&T Bank

File Number:    2055399 File

Date:                 03/16/2000

     Cltrl:   (l) CCC 0997 Locomotive     

ASSIGNMENT

File Number: 2055399

File Date:       05/18/2000

 

6

--------------------------------------------------------------------------------

2.   

Secured Party: NEC America, Inc.

File Number: 2161967

File Date: 01/19/2001

     Cltrl:  

One (1) New NEC NEAX2000 IVS2 Telephone System with NEAX AD-8 Voicemail together
with all accessories, additions and attachments thereto, replacements and
substitutions therefore and all proceeds thereof, now owned or hereinafter
acquired, Lessee has no power to sell or otherwise dispose of said property,

22724-AM

B.     Additional liens:

   Lender:    Ashland Kentucky Pollution Control Bonds;      Collateral:   
Pollution Control Equipment

 

Mississippi Secretary of State

 

A. UCC Financing Statements

 

1.   

Secured Party: ICX Corporation

File Number: 01144629

File Date:      09/25/1997

     Cltrl:   Specific Equipment 2.   

Secured Party: ICX Corporation

File Number: 01177733

File Date:      01/27/1998

     Cltrl:   Specific Equipment 3.   

Secured Party: Toyota Motor Credit Corporation

File Number: 01501325

File Date:      02/22/2001

     Cltrl:   Five New Toyota Forklifts Model 7FGCU25, S/N
68435,68472,68444,68614,68498, One New Toyota Forklift Model 7FGU30 S/N 615584
4.   

Secured Party: Toyota Motor Credit Corporation

File Number: 01535410

File Date:      06/22/2001

     Cltrl:   One New Toyota Forklift Model 7FDU35, S/N 600081

 

Hancock County, MS

 

A. UCC Financing Statements

 

1.   

Secured Party: ICX Corporation

File Number: 2429-97

File Date:       10/15/1997

     Cltrl:   Specific Equipment 2.   

Secured Party: ICX Corporation

File Number: 209-98

File Date:       01/28/1998

     Cltrl:   Specific Equipment

 

7

--------------------------------------------------------------------------------

3.   

Secured Party: Toyota Motor Credit Corporation

File Number: 415-2001

File Date:       02/22/2001

     Cltrl:   Five New Toyota Forklifts Model 7FGCU25, S/N
68435,68472,68444,68614,68498, One New Toyota Forklift Model 7FGU30 S/N 615584
4.   

Secured Party: Toyota Motor Credit Corporation

File Number: 1351-2001

File Date:       06/25/2001

 

     Cltrl:   One New Toyota Forklift Model 7FDU35, S/N 600081

 

New Jersey Secretary of State

 

A. UCC Financing Statements

 

1.   

AT& T Capital Corporation

File Number: 1690388

File Date:       03/29/1996

     Cltrl:   Equipment related to Equipment/Lease No. 00525395

 

8

--------------------------------------------------------------------------------

Annex V

Advances, Loans, Investments & Guarantee Obligations

 

Advances:

--------------------------------------------------------------------------------

                        Given by:    Receiver    Date/Comments    Local Curr.  
Local Curr.Amt    USD

Datong Carbon Company Ltd.

  

Various China Suppliers

   as of 12/31/03    CNY   183,964    $ 22,227

Calgon Carbon Tianjin Co., Ltd

  

Various China Suppliers

   as of 12/31/04    CNY   78,768    $ 9,517

Loans:

--------------------------------------------------------------------------------

                        Given by:    Receiver    Date/Comments    Local Curr.  
Local Curr.Amt    USD

Shanghai Pudong Dev. Bank

  

Datong Carbon Company Ltd.

   as of 12/15/04    RMB   5,000,000      604,000

Royal Bank of Scotland

  

Sutcliffe Speakman Ltd.

   as of 01/31/04    POUNDS   —        —  

Investments:

--------------------------------------------------------------------------------

                        Given by:    Receiver    Date/Comments    Local Curr.  
Local Curr.Amt    USD

Calgon Carbon Corporation

   Calgon Mitsubishi Chemical Corp.    as of 12/31/03             $ 6,798,000

Guarantee Obligations:

--------------------------------------------------------------------------------

                         

Calgon Carbon Corporation

   Bank Mendes Gans nv    Corporate Guarantee    no dollar amount          0

Calgon Carbon Corporation

   Caterpillar, Inc (Capital Lease)    as of 12/31/03             $ 52,000

Calgon Carbon Corporation

   Dell Computer (Capital Lease)    as of 12/31/03             $ 103,000

Chemviron Carbon (Brussels)

   Ace Leasing SA (Capital Lease)    as of 12/31/03    Eur   41,000    $ 51,000

Chemviron Carbon (Brussels)

   Ace Leasing SA (Capital Lease)    as of 12/31/03    Eur   25,000    $ 31,000

Datong Carbon Company Ltd.

   Datong Commercial Bank    expires 6/22/04    RMB 80%   2,400,000    $ 209,000

 

 

--------------------------------------------------------------------------------

Annex VI

Existing Letter of Credits & Bank Guarantees

 

(as of 2/10/04)

L/C#

   Issuing Bank #

--------------------------------------------------------------------------------

   Beneficiary

--------------------------------------------------------------------------------

  Currency

--------------------------------------------------------------------------------

   USD
Principal Amount

--------------------------------------------------------------------------------

   Maturity
Date

--------------------------------------------------------------------------------

    

Issued by Fleet

--------------------------------------------------------------------------------

                            

AS1373657

   AS1373657    Datong Carbon Co Ltd   USD    $ 650,000.00    01/21/2005       

AS1388223

   AS1388223    PA Dept. Environmental Agency   USD    $ 1,120,658.00   
08/17/2004       

AS1382829

   AS1382829    Bank Brussels Lambert   EUR    $ 4,986,000.00    12/31/2004     
 

AS1439758

   AS1439758    Northeast Pharm I/E Corp.   USD    $ 66,000.00    11/01/2004   
   

AS1439758

   AS1439758    Anhui BBCA Biochemical Co.   USD    $ 306,000.00    06/30/2004
      

AS1386353

   AS1386353    Star Lake Bioscience   USD    $ 110,000.00    08/30/2004       

AS1439781

   AS1439781    Ondeo-Degremont   USD    $ 148,092.00    03/17/2004            
                          $ 7,386,750.00

Issued by PNC Bank

--------------------------------------------------------------------------------

                                

868929

   901663    Division Of Waste Mgmt, KY   USD    $ 1,352,705.00    10/01/2004   
   

868930

   901664    The Home Insurance Company   USD    $ 145,393.00    05/12/2004     
 

868931

   901665    Zurich Insurance Company   USD    $ 257,305.00    04/01/2004       

868932

   901667    Zurich Insurance Company   USD    $ 500,000.00    04/01/2004       

868951

   309126    JP Morgan Trust Company
(Miss. Bonds)   USD    $ 3,094,521.00    05/01/2004       

868952

   228511    Zurich American Insurance
Company   USD    $ 514,832.00    04/01/2004       

875199

   S245494PGH    Zurich American Insurance
Company   USD    $ 400,000.00    05/01/2004       

875243

   S248593PGH    Korea Exchange Bank   USD    $ 32,430.00    07/11/2005       

875933

   S252869PGH    PA Dept. Environmental   USD    $ 170,067.00    07/11/2004     
                                 $ 6,467,253.00                   

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                      Subtotal under Current Credit Facility    $ 13,854,003.00
                              

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

           

Issued By Bank Brussels Lambert (as of 1/31/04) exchange = 1.2471

--------------------------------------------------------------------------------

       BEF

--------------------------------------------------------------------------------

   EUR

--------------------------------------------------------------------------------

   USD

--------------------------------------------------------------------------------

     G321096    MUSHRIF Trading & Contractg   USD      857,195    21,249    $
26,500     

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G315574    VMW Vlaams.Mij Watetvoorz.   BEF      400,000   
9,916    $ 12,366     

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G322845    Philipp MULLER   DEM      47,336    1,173    $ 1,463
    

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G322838    KMMC—re: Mushrif   USD      255,056    6,323    $
7,885     

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G323858    GIST-BROCADES   NLG      11,257,821    279,074    $
346,033     

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G321692    WARSAW Muni.Water Suppl.   DEM      1,029,910   
25,531    $ 31,839     

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G321815    WARSAW Muni.Water Suppl.   DEM      1,671,111   
41,426    $ 51,662     

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G636992    MINIST.REG.WALLONNE   BEF      7,000,000    173,525
   $ 216,404     

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G323068    CIBE BRUXELLES   BEF      13,000,000    322,262    $
401,892     

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G324350    BASSO PIAVE   EUR      3,743,543    92,800    $
115,731     

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G320080    MINIST.REG.WALLONNE   BEF      2,000,000    49,579
   $ 61,830     

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G311866    CUSTOMS & EXCISE Belgium   BEF      500,000   
12,395    $ 15,457     

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G324103    SPAQUE   BEF      585,000    14,502    $ 18,085     

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G324748    S.W.D.E.   EUR      145,224    3,600    $ 4,490     
             

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G324788    METITO   USD      304,514    7,549    $ 9,414       
           

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G325068    MOTOR OIL (HELLAS)   EUR      2,448,108    60,687   
$ 75,683      G325332    PUBLIACQUA   EUR      4,053,797    100,491    $ 125,322
                  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G325383    THE KANOO GROUP   USD      392,854    9,739    $
12,145                   

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G326092    METITO ARABIA IND.   USD      90,572    2,245    $
2,800                   

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G325776    FOVAROSI VIZMUVEK   HUF      2,041    51    $ 63  
                

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G325819    SAGEP   EUR      385,085    9,546    $ 11,905       
           

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G325826    DELMULHE HAMBURG   EUR      1,020,599    25,300    $
31,552                   

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G325823    UESSANCY REALISATION   EUR      24,215,728   
600,292    $ 748,624                   

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G326362    RPCO ENTR.   USD      680,807    16,877    $ 21,047
                  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G326455    AMYLUM SOLVAKIA   EUR      2,218,695    55,000    $
68.591                   

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G326631    GORNOSLASKIE PRZEDSIEB   PLN      162,794    4,036
   $ 5,033                   

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G326641    FOVAROSI VIZMUVEK   HUF      2,041    51    $ 63  
                

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G326761    RPCO ENTR.   USD      680,807    16,877    $ 21,047
                  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G326781    SOC. WALLONNE DES EAUX   EUR      123,440    3,060
   $ 3,816                   

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G326965    COM. URBAINE DE NANTES   EUR      303,953    7,535
   $ 9,397                   

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 G327171    JUNTA DE RESIDUOS   EUR      490,533    12,160    $
15,165                   

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

          Subtotal under BBL Facility      80,068,564    1,984,848    $
2,475,304                   

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

ANNEX VII

 

DESCRIPTION OF MATERIAL RECOVERY EVENTS

 

1. Calgon Carbon Corporation vs. Potomac Capital Investment Corporation, Potomac
Electric Power Company, Progress Capital Holdings, Inc. and Florida Progress
Corporation. Calgon Carbon Corporation filed suit for an unspecified amount of
damages in the Western District of Pennsylvania alleging among other things that
the defendants materially breached various representations and warranties
relating to the acquisition of Advanced Separation Technologies, Inc.

 

2. Wedeco Ideal Horizons, Inc. vs. Calgon Carbon Corporation. Wedeco sought a
declaratory judgment that it does not infringe Calgon Carbon Corporation’s
patents relating to the prevention of cryptosporidium infection in drinking
water. Calgon Carbon Corporation intends to recover damages for infringement of
these and related patents by Wedeco or its affiliates.

 

3. Calgon Carbon Corporation vs. The Corporation of the City of North Bay and
Trojan Technologies, Inc. Calgon Carbon Corporation seeks damages for
infringement of cryptosporidium infection prevention patents.

 

4. Calgon Carbon Corporation vs. Town of Ontario, New York and Robert Wykle, as
Superintendent of Ontario Water Utilities Department. Calgon Carbon Corporation
seeks damages for infringement of cryptosporidium infection prevention patents.

 

5. All current and potential infringers and contributory infringers of Calgon
Carbon Corporation’s current and future patents related to cryptosporidium
infection prevention methods and continuous ion and reactive separation
technology.

 

6. Calgon Carbon Corporation vs. Torus Liquid Separation, B.V. and Koninklijke
Pannevis B.V. Calgon Carbon Corporation alleges trade secret violations pursuant
to a cancelled distribution agreement and patent infringement.

 

7. For Your Ease Only, Inc. vs. Calgon Carbon Corporation and Product Concepts
Company and Mark Schneider. Calgon Carbon Corporation sued for tortuous
interference with a contractual relationship. Calgon Carbon Corporation expects
to recover damages for patent infringement.

 

--------------------------------------------------------------------------------

ANNEX VIII

 

ALTERNATIVE CURRENCIES

 

Euros

Canadian Dollars

Pounds Sterling

Japanese Yen

New Zealand Dollars

 

Same as 3/21/03 Credit Agreement

 

 

--------------------------------------------------------------------------------

ANNEX IX

 

DESCRIPTION OF CONTINGENT LIABILITIES

WITH RESPECT TO POST-RETIREMENT WELFARE BENEFITS

 

1. James A. Cederna – Mr. Cederna, who retired on February 25,2003, will be
provided with life insurance and long term disability insurance through December
31, 2005. Additionally, the Borrower has agreed to pay the premium costs for
medical, dental, vision and prescription drug coverages currently provided to
Mr. Cederna and his dependents through December 31, 2005, unless Mr. Cederna
accepts other employment providing such benefits, at which time the Borrower
will no longer pay for such coverage.

 

2. Joseph A. Fischette – Mr. Fischette, who retired effective November 1,2002,
and his dependents, will be provided with medical and dental coverage, which
shall terminate upon Mr. Fischette’s attainment of age sixty (60) on March 7,
2007.

 

3. Neville Island Plant – Eligible employees at the Borrower’s Neville Island
Plant who are represented by United Steelworkers of America AFL-CIO-CLC and who
retire before age 65 are entitled to medical coverage for themselves and their
dependents until the employee attains age 65.

 

--------------------------------------------------------------------------------

ANNEX X

 

DESCRIPTION OF DOCUMENTS THAT ARE REQUIRED TO BE SCHEDULED PURSUANT TO SECTION
9.11

 

1 Documents related to the Mississippi Business Finance Corporation Industrial
Revenue Bonds.

 

 

--------------------------------------------------------------------------------

ANNEX XI

 

ENVIRONMENTAL MATTERS

 

Waterlink - Barnebey Sutcliffe Facility

835 North Cassaday Street

Columbus, Ohio

 

There are several environmental conditions identified at the Waterlink-Barnebey
Sutcliffe (“WBS”) facility in Columbus, Ohio. Soils and groundwater in several
areas are contaminated with one or more volatile organic compounds,
semi-volatile organic compounds and/or metals. The most significant of such
areas is the former drum storage area where dense nonaqueous phase liquids
(“DNAPLs”) have been identified. There are also approximately 3,000 cubic yards
of spent activated carbon stockpiled in this area that must be disposed.
Adjacent to the southeast of this area is a captive landfill site that may
require additional investigation and possibly remediation. WBS’s consultant,
Clayton Group Services (located in Akron, Ohio) estimates remediation costs for
the soil and groundwater contamination in the former drum storage area to be
between approximately $2.2 and $2.6 million. Calgon Carbon Corporation’s
consultant, KU Resources (Duquesne, Pennsylvania) estimates remediation of this
and other impacted areas at the facility could cost between $5.3 and $7.3
million, although less expensive remedial options may be available.

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

THE SUBSIDIARIES OF

 

Calgon Carbon Corporation

 

NAMED HEREIN

 

as Guarantors

 

With

 

NATIONAL CITY BANK OF PENNSYLVANIA,

 

as Administrative Agent

 

--------------------------------------------------------------------------------

 

SUBSIDIARY GUARANTY

 

dated as of

 

February 18, 2004

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

SUBSIDIARY GUARANTY

 

SUBSIDIARY GUARANTY, dated as of February 18, 2004 (as amended, modified or
supplemented from time to time, “this Guaranty”), made by (i) each of the
undersigned (each, together with its successors and assigns, a “Guarantor” and
collectively, the “Guarantors”), with (ii) NATIONAL CITY BANK OF PENNSYLVANIA, a
national banking association, as Administrative Agent (herein, together with its
successors and assigns in such capacity, the “Administrative Agent”), for the
benefit of the Creditors (as defined below):

 

PRELIMINARY STATEMENTS:

 

(1) Except as otherwise defined herein, terms used herein and defined in the
Credit Agreement (as defined below) shall be used herein as therein defined.
Certain terms used herein are defined in section 1 hereof.

 

(2) This Guaranty is made pursuant to the Credit Agreement, dated as of the date
hereof (herein, as amended or otherwise modified, restated or replaced from time
to time, the “Credit Agreement”), among Calgon Carbon Corporation, a Delaware
corporation (herein, together with its successors and assigns, the “Company” or
a “Borrower”), the financial institutions named as lenders therein (herein,
together with any other person that becomes a “Lender” under the Credit
Agreement and the respective successors and assigns of such lenders and
“Lenders”, the “Lenders”), and the Administrative Agent.

 

(3) The Credit Agreement provides, among other things, for loans or advances or
other extensions of credit to or for the benefit of the Borrower of up to
$125,000,000, with such loans or advances being evidenced by promissory notes
(the “Notes”, such term to include all notes and other securities issued in
exchange therefor or in replacement thereof). The Credit Agreement also provides
that one or more Letter of Credit Issuers may issue Letters of Credit for the
benefit of the Borrower and/or any of its Subsidiaries, and that the Lenders
will risk participate in such Letters of Credit.

 

(4) The Company or any of its Subsidiaries may from time to time be party to one
or more Designated Hedge Agreements (as defined in the Credit Agreement) and
other Designated Hedge Documents (as defined herein). Any institution or other
person that participates, and in each case their successors and assigns, as a
counterparty to the Company or any of its Subsidiaries or Affiliates pursuant to
any Designated Hedge Document is referred to herein individually as a
“Designated Hedge Creditor” and collectively as the “Designated Hedge
Creditors”.

 

(5) This Guaranty is made for the benefit of the Administrative Agent, each
Letter of Credit Issuer, the Lenders and the Designated Hedge Creditors (any or
all of the foregoing, together with their respective successors and assigns,
individually a “Creditor” and collectively, the “Creditors”).

 

(6) Each Guarantor is a direct or indirect Subsidiary of the Company. This
Guaranty is one of the Credit Documents referred to in the Credit Agreement.

 

(7) It is a condition to the making of Loans and the issuance of, and
participation in, Letters of Credit, under the Credit Agreement that each
Guarantor shall have executed and delivered this Guaranty.

 

(8) Each Guarantor will obtain benefits from the incurrence of the Credit
Document Obligations and the Designated Hedge Document Obligations (as such
terms are hereafter defined) and, accordingly, desires to execute this Guaranty
in order to satisfy the condition described in the preceding paragraph and to
induce the Creditors to extend the Credit Document Obligations and the
Designated Hedge Document Obligations.

 

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NOW, THEREFORE, in consideration of the foregoing and other benefits accruing to
each Guarantor, the receipt and sufficiency of which are hereby acknowledged,
each Guarantor hereby makes the following representations and warranties to the
Administrative Agent and the other Creditors and hereby covenants and agrees
with the Administrative Agent and each other Creditor as follows:

 

1. Certain Definitions. As used in this Guaranty, the following terms shall have
the meanings herein specified unless the context otherwise requires:

 

“Credit Document Obligations” shall mean and include:

 

  (i) the principal of and interest on the Notes issued by, and the Loans made
to, the Borrower under the Credit Agreement,

 

  (ii) all reimbursement obligations and Unpaid Drawings with respect to Letters
of Credit issued under the Credit Agreement, and

 

  (iii) all other obligations and liabilities owing by the Borrower and the
other Credit Parties to the Administrative Agent, any Letter of Credit Issuer or
any of the Lenders under the Credit Agreement and the other Credit Documents to
which the Borrower or any other Credit Party is now or may hereafter become a
party (including, without limitation, indemnities, Fees and other amounts
payable thereunder), whether primary, secondary, direct, contingent, fixed or
otherwise,

 

in all cases whether now existing, or hereafter incurred or arising, including
any such interest or other amounts incurred or arising during the pendency of
any bankruptcy, insolvency, reorganization, receivership or similar proceeding,
regardless of whether allowed or allowable in such proceeding or subject to an
automatic stay under section 362(a) of the Bankruptcy Code.

 

“Designated Hedge Document” shall mean and include (i) each Designated Hedge
Agreement to which the Company or any of its Subsidiaries or Affiliates is now
or may hereafter become a party, and (ii) each confirmation, transaction
statement or other document executed and delivered in connection therewith to
which the Company or any of its Subsidiaries or Affiliates is now or may
hereafter become a party.

 

“Designated Hedge Document Obligations” shall mean and include all obligations
and liabilities owing by the Company or any of its Subsidiaries or Affiliates
under all existing and future Designated Hedge Documents, in all cases whether
now existing, or hereafter incurred or arising, including any such amounts
incurred or arising during the pendency of any bankruptcy, insolvency,
reorganization, receivership or similar proceeding, regardless of whether
allowed or allowable in such proceeding or subject to an automatic stay under
section 362(a) of the Bankruptcy Code.

 

“Guaranteed Documents” shall mean and include (i) the Credit Agreement, the
Notes and the other Credit Documents to which the Borrower or any of its
Subsidiaries or Affiliates is now or may hereafter become a party, and (ii) each
Designated Hedge Agreement and other Designated Hedge Document to which the
Company or any of its Subsidiaries or Affiliates is now or may hereafter become
a party.

 

“Guaranteed Obligations” shall mean and include the Credit Document Obligations
and the Designated Hedge Document Obligations.

 

2. Guaranty by the Guarantors, etc. (a) Each Guarantor, jointly and severally,
irrevocably and unconditionally guarantees:

 

  (i) to the Administrative Agent, each Letter of Credit Issuer and the Lenders
the full and prompt payment when due (whether at the stated maturity, by
acceleration or otherwise) of all of the Credit Document Obligations of (1) the
Borrower, and (2) each of the other Subsidiaries and Affiliates of the Borrower
which is a Credit Party; and

 

  (ii) to each Designated Hedge Creditor the full and prompt payment when due
(whether at the stated maturity, by acceleration or otherwise) of all of the
Designated Hedge Document Obligations of (1) the Company, and (2) each of the
other Subsidiaries and Affiliates of the Company.

 

Such guaranty is an absolute, unconditional, present and continuing guaranty of
payment and not of collectibility and is in no way conditioned or contingent
upon any attempt to collect from the Borrower or any other Subsidiary or
Affiliate

 

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of the Borrower, or any other action, occurrence or circumstance whatsoever. If
an Event of Default shall occur and be continuing under the Credit Agreement or
any payment default shall occur and be outstanding under any Designated Hedge
Document beyond any applicable notice or grace period, each Guarantor will,
within two Business Days following its receipt of written notice from the
Administrative Agent demanding payment hereunder, pay to the Administrative
Agent, for the benefit of the Creditors, in immediately available funds, at the
Payment Office of the Administrative Agent, such amount of the Guaranteed
Obligations as the Administrative Agent shall specify in such notice, on the
same terms as applicable to the Guaranteed Obligations.

 

  (b) In addition to the foregoing, each Guarantor also, jointly and severally,
irrevocably and unconditionally guarantees that each of the terms, conditions,
covenants and agreements of the Borrower under the Credit Agreement, and of the
Borrower and its other Subsidiaries and Affiliates under the other Guaranteed
Documents, will be duly and punctually performed and observed strictly in
accordance with the terms thereof and that if for any reason whatsoever the
Borrower or its other Subsidiaries or Affiliates shall fail to do so (beyond any
applicable grace period), such Guarantor shall duly and punctually perform and
observe, or cause the Borrower or such other Subsidiary or Affiliate, as
applicable, to duly and punctually perform and observe, the same. Such guaranty
is an absolute, unconditional, present and continuing guaranty of performance
and is in no way conditioned or contingent upon any attempt to enforce
performance by the Company or any other Subsidiary or Affiliate of the Company,
or any other act, occurrence or circumstance whatsoever.

 

  (c) In addition to the foregoing, each Guarantor, jointly and severally,
unconditionally and irrevocably, guarantees to the Creditors the payment of any
and all Guaranteed Obligations of the Borrower and each of their other
Subsidiaries and Affiliates, whether or not due or payable by the obligor
thereon, upon the occurrence in respect of the Borrower or other applicable
obligor of any bankruptcy or insolvency proceeding or case under the Bankruptcy
Code, and unconditionally and irrevocably, jointly and severally, promises to
pay such Guaranteed Obligations to the Administrative Agent, for the benefit of
the Creditors, on demand, in such currency and otherwise in such manner as is
provided in the Guaranteed Documents governing such Guaranteed Obligations.

 

  (d) As a separate, additional and continuing obligation, each Guarantor
unconditionally and irrevocably undertakes and agrees, for the benefit of the
Creditors, that, should any amounts constituting Guaranteed Obligations not be
recoverable from the Borrower or any other applicable Subsidiary or Affiliate
for any reason whatsoever (including, without limitation, by reason of any
provision of any Guaranteed Document or any other agreement or instrument
executed in connection therewith being or becoming, at any time, voidable, void,
unenforceable, or otherwise invalid under any applicable law), then
notwithstanding any notice or knowledge thereof by the Administrative Agent, any
other Creditor, any of their respective Affiliates, or any other person, each
Guarantor, jointly and severally, as sole, original and independent obligor,
upon demand by the Administrative Agent, will make payment to the Administrative
Agent, for the account of the Creditors, of all such obligations not so
recoverable by way of full indemnity, in such currency and otherwise in such
manner as is provided in the Guaranteed Documents.

 

  (e) Each Guarantor understands, agrees and confirms that the Administrative
Agent and the other Creditors may enforce this Guaranty up to the full amount of
the Guaranteed Obligations against any Guarantor without proceeding against any
other Guarantor, the Borrower or any other person, or against any security or
other collateral.

 

  (f) All payments by each Guarantor under this Guaranty shall be made to the
Administrative Agent, for the benefit of the Creditors, in such currency and
otherwise in such manner as is provided in the Guaranteed Documents to which
such payments relate.

 

3.

Subordination. (a) Any Indebtedness or other obligations or liabilities of the
Borrower now or hereafter held by any Guarantor (collectively, “Subordinated
Obligations”) is hereby subordinated to the Indebtedness of the Borrower to any
Creditor; and such Subordinated Obligations of the Borrower to any Guarantor, if
the Administrative Agent, after an Event of Default has occurred so requests,
shall be collected, enforced and received by such Guarantor as trustee for the
Administrative Agent and the other Creditors and be paid over to the
Administrative Agent, for the benefit of the Creditors, on account of the
Indebtedness of the

 

3

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Borrower to the Administrative Agent and the other Creditors, but without
affecting or impairing in any manner the liability of such Guarantor under the
other provisions of this Guaranty. Prior to the transfer by any Guarantor of any
note or negotiable instrument evidencing any Subordinated Obligation of the
Borrower to such Guarantor, such Guarantor shall mark such note or negotiable
instrument with a legend that the same is subject to this subordination.

 

  (b) If and to the extent that any Guarantor makes any payment to the
Administrative Agent or any other Creditor or to any other person pursuant to or
in respect of this Guaranty, any reimbursement or similar claim which such
Guarantor may have against the Borrower by reason thereof shall be subject and
subordinate to the prior termination of the Total Commitment termination or
expiration of all Letters of Credit and indefeasible payment in full of all
Guaranteed Obligations owed to the Administrative Agent and the other Creditors.

 

4. Guarantors’ Obligations Absolute, etc. The obligations of each Guarantor
under this Guaranty shall be absolute and unconditional, shall not be subject to
any counterclaim, setoff, deduction or defense based on any claim such Guarantor
may have against the Borrower or any other person, including, without
limitation, the Administrative Agent, any other Creditor, any of their
respective Affiliates, or any other Guarantor, and shall remain in full force
and effect without regard to, and shall not be released, suspended, abated,
deferred, reduced, limited, discharged, terminated or otherwise impaired or
adversely affected by any circumstance or occurrence whatsoever, other than
indefeasible payment in full of, and complete performance of, all of the
Guaranteed Obligations, the termination of the Total Commitment and the
termination or expiration of all Letters of Credit, including, without
limitation:

 

  (1) any increase in the amount of the Guaranteed Obligations outstanding from
time to time, including, without limitation, any increase in the aggregate
outstanding amount of the Loans and Letters of Credit above any specific maximum
amount referred to herein or in the Credit Agreement as in effect on the date
hereof, and any increase in any interest rate, Fee or other amount applicable to
any portion of the Guaranteed Obligations or otherwise payable under any
Guaranteed Document;

 

  (2) any direction as to the application of any payment by the Borrower or by
any other person;

 

  (3) any incurrence of additional Guaranteed Obligations at any time or under
any circumstances, including, without limitation, (x) during the continuance of
a Default or Event of Default, (y) at any time when all conditions to such
incurrence have not been satisfied, or (z) in excess of borrowing base, sublimit
or other similar or dissimilar limitations contained in the Credit Agreement or
any of the other Guaranteed Documents;

 

  (4) any renewal or extension of the time for payment or maturity of any of the
Guaranteed Obligations, or any amendment or modification of, or addition or
supplement to, or deletion from, the Credit Agreement, any other Guaranteed
Document, or any other instrument or agreement applicable to the Borrower or any
other person, or any part thereof, or any assignment, transfer or other
disposition of any thereof;

 

  (5) any failure of the Credit Agreement, any other Guaranteed Document, or any
other instrument or agreement applicable to the Borrower or any other person, to
constitute the legal, valid and binding agreement or obligation of any party
thereto, enforceable in accordance with its terms, or any irregularity in the
form of any Guaranteed Document;

 

  (6) any failure on the part of the Borrower or any other person to perform or
comply with any term or provision of the Credit Agreement, any other Guaranteed
Document, or any such other instrument or agreement;

 

4

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  (7) any waiver, consent, extension, indulgence or other action or inaction
(including, without limitation, any lack of diligence, any failure to mitigate
damages or marshall assets, or any election of remedies) under or in respect of
(x) the Credit Agreement, any other Guaranteed Document, or any such other
instrument or agreement, or (y) any obligation or liability of the Borrower or
any of its other Subsidiaries or Affiliates;

 

  (8) any exercise or non-exercise of any right, power or remedy under or in
respect of the Credit Agreement, any other Guaranteed Document, or any such
other instrument or agreement, or any such obligation or liability, including,
without limitation, (x) any failure of the Administrative Agent or any other
Creditor to give notice of any Default or Event of Default under any Guaranteed
Document, or to advance funds for the protection or preservation of, or
provision of insurance for, or payment of taxes on, any property which is
collateral security for any of the Guaranteed Obligations, and (y) any act or
failure to act on the part of the Administrative Agent or any other Creditor, in
any manner referred to in this Guaranty, or otherwise, which may deprive such
Guarantor of its right to (A) subrogation against the Borrower to recover full
reimbursement or indemnity for any payments made pursuant to this Guaranty, or
(B) contribution from any other Guarantor for any such payments made by it, or
which otherwise may adversely affect the amount recoverable upon the exercise of
any such right of subrogation or contribution;

 

  (9) any application of any amounts by whomsoever paid or howsoever realized to
the Guaranteed Obligations or any other liabilities owed to the Administrative
Agent or any other Creditor, regardless of the order or priority of any such
application, and regardless of what liabilities of the Borrower or any other
person remain unpaid;

 

  (10) any settlement or compromise of any of the Guaranteed Obligations, any
security therefor or guaranty thereof;

 

  (11) any payment made to the Administrative Agent or any other Creditor on the
Guaranteed Obligations which the Administrative Agent or any other Creditor
repays, returns or otherwise restores to the Borrower or any other applicable
obligor pursuant to court order in any bankruptcy, reorganization, arrangement,
moratorium or other debtor relief proceeding;

 

  (12) any subordination of any of the claims of the Administrative Agent or any
other Creditor to any claims of any creditors of the Borrower or any other
person, or any subordination of any liens or security interests in favor of the
Administrative Agent or any other Creditor to any liens or security interests of
any other person;

 

  (13) any sale, exchange, release, surrender or foreclosure of, or any
realization upon, or other dealing with, in any manner and in any order, any
property, rights or interests by whomsoever at any time granted, assigned,
pledged or mortgaged to secure, or howsoever securing, the Guaranteed
Obligations, or any other liabilities or obligations (including any of those
hereunder), or any portion of any thereof;

 

  (14) the existence of any right of setoff, offset or banker’s lien, or any
failure to exercise rights in respect thereof, or any release thereof;

 

  (15) any furnishing of any new or additional security or any new or additional
guaranty to or for the benefit of any Creditor, or any acceptance thereof,
including, without limitation, any addition of any Guarantor to this Guaranty;

 

  (16)

any release of any security or any guaranty by or at the direction of the
Administrative Agent or any other Creditor, or any release or discharge of, or

 

5

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limitation of recourse against, any person furnishing any security or guaranty,
including, without limitation, any release or discharge of any Guarantor from
this Guaranty;

 

  (17) any limitation on any person’s liability or obligation under the Credit
Agreement, any other Guaranteed Document, or any such other instrument or
agreement, or any such obligation or liability, or any termination,
cancellation, avoidance, commercial or other frustration, impracticability,
invalidity, unenforceability or ineffectiveness, in whole or in part, of the
Credit Agreement, any other Guaranteed Document, or any such other instrument or
agreement or any such obligation or liability or any term or provision of any
thereof;

 

  (18) any insolvency, bankruptcy, receivership, liquidation, reorganization,
readjustment, composition, arrangement or other similar proceeding relating to
Borrower or to any of their properties or assets, or any such proceeding by,
among or on behalf of any of its creditors, as such, or any proceeding for the
voluntary liquidation or dissolution or other winding up of Borrower, whether or
not insolvency or bankruptcy proceedings, or any assignment for the benefit of
its creditors, or any other marshaling of its assets, or any action taken by any
trustee or receiver or by any court in any such proceeding;

 

  (19) any disallowance or limitation of any claim of the Administrative Agent,
any other Creditor, or any other person, in any such proceeding;

 

  (20) any change in the ownership of all or any part of the capital stock of,
or other equity interests in, the Borrower, any of its Subsidiaries or
Affiliates, or any other person, or any merger or consolidation involving the
Borrower, any of its Subsidiaries or Affiliates, or any other person, or any
purchase, acquisition, sale, lease or disposition by the Borrower, any of its
Subsidiaries or Affiliates, or any other person, of any assets or properties;

 

  (21) any breach by any of the Borrower or any of its other Subsidiaries or
Affiliates of any of its representations or warranties contained in any of the
Guaranteed Documents or any other certificate or document executed and delivered
in connection therewith;

 

  (22) any inability of the Borrower to create or incur any Subordinated
Indebtedness or other Indebtedness, or the existence of any contractual or other
restriction upon the ability of the Borrower to issue and sell shares of its
capital stock, to purchase, sell, lease or otherwise dispose of assets, to incur
Subordinated Indebtedness or other Indebtedness, or to otherwise conduct its
business affairs;

 

  (23) any assignment, transfer or other disposition, in whole or in part, by
the Borrower or any other person of its interest in any of the property, rights
or interests constituting security for all or any portion of the Guaranteed
Obligations or any other Indebtedness, liabilities or obligations;

 

  (24) any failure of any of the Credit Documents, or any other agreement or
instrument securing all or any portion of the Guaranteed Obligations, to
effectively subject any property, rights or interests to any liens or security
interests purported to be granted or created thereby, or any failure of any such
liens or security interests to be or become perfected or to establish or
maintain the priority over other liens and security interests contemplated
thereby;

 

  (25) any condemnation or taking of, or any encumbrance on or interference with
any use of, or any damage to, or any destruction of, any such property, or any
part thereof or interest therein;

 

6

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  (26) any lack of notice to, or knowledge by, any Guarantor of any of the
matters referred to above; and/or

 

  (27) any other circumstance or occurrence, whether similar or dissimilar to
any of the foregoing, which could or might constitute a defense available to, or
a discharge of the obligations of, a guarantor or other surety.

 

5. Waivers. Each Guarantor unconditionally waives, to the maximum extent
permitted under any applicable law now or hereafter in effect, insofar as its
obligations under this Guaranty are concerned, (i) notice of any of the matters
referred to in section 4, (ii) all notices required by statute, rule of law or
otherwise to preserve any rights against such Guarantor hereunder, including,
without limitation, any demand, presentment, proof or notice of dishonor or
non-payment of any Guaranteed Obligation, notice of acceptance of this Guaranty,
notice of the incurrence of any Guaranteed Obligation, notice of any failure on
the part of the Borrower, any of its Subsidiaries or Affiliates, or any other
person, to perform or comply with any term or provision of the Credit Agreement,
any other Guaranteed Document or any other agreement or instrument to which the
Borrower or any other person is a party, or notice of the commencement of any
proceeding against any other person or its any of its property or assets, (iii)
any right to the enforcement, assertion or exercise against the Borrower or
against any other person or any collateral of any right, power or remedy under
or in respect of the Credit Agreement, the other Guaranteed Documents or any
other agreement or instrument, and (iv) any requirement that such Guarantor be
joined as a party to any proceedings against the Borrower or any other person
for the enforcement of any term or provision of the Credit Agreement, the other
Guaranteed Documents, this Guaranty or any other agreement or instrument.

 

6. Subrogation Rights. Until such time as the Guaranteed Obligations have been
paid in full in cash and otherwise fully performed, the Total Commitment under
the Credit Agreement has been terminated and all Letters of Credit have been
terminated or have expired, each Guarantor hereby irrevocably waives all rights
of subrogation which it may at any time otherwise have as a result of this
Guaranty (whether contractual, under section 509 of the Bankruptcy Code, or
otherwise) to the claims of the Administrative Agent and/or the other Creditors
against the Borrower, any other Guarantor or any other guarantor of or surety
for the Guaranteed Obligations and all contractual, statutory or common law
rights of reimbursement, contribution or indemnity from the Borrower or any
other Guarantor which it may at any time otherwise have as a result of this
Guaranty.

 

7. Separate Actions. A separate action or actions may be brought and prosecuted
against any Guarantor whether or not action is brought against any other
Guarantor, any other guarantor or any of the Borrower, and whether or not any
other Guarantor, any other guarantor of the Borrower or the Borrower be joined
in any such action or actions.

 

8. Guarantors Familiar with Borrower’s Affairs, etc. Each Guarantor confirms
that an executed (or conformed) copy of each of the Credit Documents has been
made available to its principal executive officers, that such officers are
familiar with the contents thereof and of this Guaranty, and that it has
executed and delivered this Guaranty after reviewing the terms and conditions of
the Credit Agreement, the other Credit Documents and this Guaranty and such
other information as it has deemed appropriate in order to make its own credit
analysis and decision to execute and deliver this Guaranty. Each Guarantor
confirms that it has made its own independent investigation with respect to the
creditworthiness of the Borrower and its other Subsidiaries and Affiliates and
is not executing and delivering this Guaranty in reliance on any representation
or warranty by the Administrative Agent or any other Creditor or any other
person acting on behalf of the Administrative Agent or any other Creditor as to
such creditworthiness. Each Guarantor expressly assumes all responsibilities to
remain informed of the financial condition of the Borrower and its other
Subsidiaries and Affiliates and any circumstances affecting (i) the Borrower’s
or any other Subsidiary’s or Affiliate’s ability to perform its obligations
under the Credit Agreement and the other Guaranteed Documents to which it is a
party, or (ii) any collateral securing, or any other guaranty for, all or any
part of the Borrower’s or such other Subsidiary’s or Affiliate’s payment and
performance obligations thereunder; and each Guarantor further agrees that the
Administrative Agent and the other Creditors shall have no duty to advise any
Guarantor of information known to them regarding such circumstances or the risks
such Guarantor undertakes in this Guaranty.

 

9.

Covenant Not to Cause Events of Default under Credit Agreement, etc. Each
Guarantor covenants and agrees that on and after the date hereof and until this
Guaranty is terminated in accordance with

 

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section 28 hereof, such Guarantor shall take, or will refrain from taking, as
the case may be, all actions that are necessary to be taken or not taken so that
no violation of any provision, covenant or agreement contained in section 8 or 9
of the Credit Agreement, and so that no Event of Default, is caused by the
actions of such Guarantor or any of its Subsidiaries.

 

10. Representations and Warranties. Each Guarantor represents and warrants to
the Administrative Agent and each of the other Creditors that:

 

  (a) it is a duly organized or formed and validly existing corporation,
partnership or limited liability company, as the case may be, in good standing
under the laws of the jurisdiction of its formation and has the corporate,
partnership or limited liability company power and authority, as applicable, to
own its property and assets and to transact the business in which it is engaged
and presently proposes to engage;

 

  (b) it has the corporate or other organizational power and authority to
execute, deliver and carry out the terms and provisions of the Credit Documents
to which it is party and has taken all necessary corporate or other
organizational action to authorize the execution, delivery and performance of
the Credit Documents to which it is party;

 

  (c) it has duly executed and delivered each Credit Document to which it is
party and each Credit Document to which it is party constitutes the legal, valid
and binding agreement or obligation of such Guarantor enforceable in accordance
with its terms, except to the extent that the enforceability thereof may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws generally affecting creditors’ rights and by equitable
principles (regardless of whether enforcement is sought in equity or at law);

 

  (d) neither the execution, delivery and performance by such Guarantor of the
Credit Documents to which it is party nor compliance with the terms and
provisions thereof (i) will contravene any provision of any law, statute, rule,
regulation, order, writ, injunction or decree of any court or governmental
instrumentality applicable to such Guarantor or its properties and assets, (ii)
will conflict with or result in any breach of, any of the terms, covenants,
conditions or provisions of, or constitute a default under, or result in the
creation or imposition of (or the obligation to create or impose) any Lien
(other than any Lien created pursuant to the Credit Documents) upon any of the
property or assets of such Guarantor pursuant to the terms of any promissory
note, bond, debenture, indenture, mortgage, deed of trust, credit or loan
agreement, or any other material agreement or other instrument, to which such
Guarantor is a party or by which it or any of its property or assets are bound
or to which it may be subject, or (iii) will violate any provision of the
certificate or articles of incorporation, code of regulations or by-laws, or
other charter or organizational documents of such Guarantor;

 

  (e)

no order, consent, approval, license, authorization, or validation of, or
filing, recording or registration with, or exemption by, any foreign or domestic
governmental or public body or authority, or any subdivision thereof, is
required to authorize or is required as a condition to (i) the execution,
delivery and performance by such Guarantor of any Credit Document to which it is
a party, or (ii) the legality, validity, binding effect or enforceability of any
Credit Document to which such Guarantor is a party, other than filings and
recordings necessary to establish or perfect

 

8

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any security interests or other Liens created pursuant to the Credit Documents;

 

  (f) there are no actions, suits or proceedings pending or, to, the knowledge
of such Guarantor, threatened with respect to such Guarantor which question the
validity or enforceability of any of the Credit Documents to which such
Guarantor is a party, or of any action to be taken by such Guarantor pursuant to
any of the Credit Documents to which it is a party; and

 

  (g) as of the date such Guarantor has become a party to this Guaranty, (i)
such Guarantor has received consideration which is the reasonable equivalent
value of the obligations and liabilities that such Guarantor has incurred to the
Administrative Agent and the other Creditors under this Guaranty and the other
Credit Documents to which such Guarantor is a party; (ii) such Guarantor has
capital sufficient to carry on its business and transactions and all business
and transactions in which it is about to engage and is solvent and able to pay
its debts as they mature; (iii) such Guarantor owns property having a value,
both at fair valuation and at present fair salable value, greater than the
amount required to pay its debts; and (iv) such Guarantor is not entering into
the Credit Documents to which it is a party with the intent to hinder, delay or
defraud its creditors.

 

11. Continuing Guaranty; Remedies Cumulative, etc. This Guaranty is a continuing
guaranty, all liabilities to which it applies or may apply under the terms
hereof shall be conclusively presumed to have been created in reliance hereon,
and this Guaranty shall remain in full force and effect until terminated as
provided in section 28 hereof. No failure or delay on the part of the
Administrative Agent or any other Creditor in exercising any right, power or
privilege hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, power or
privilege. The rights and remedies herein expressly specified are cumulative and
not exclusive of any rights or remedies which the Administrative Agent or any
other Creditor would otherwise have. No notice to or demand on any Guarantor in
any case shall entitle such Guarantor to any other further notice or demand in
similar or other circumstances or constitute a waiver of the rights of the
Administrative Agent or any other Creditor to any other or further action in any
circumstances without notice or demand. It is not necessary for the
Administrative Agent or any other Creditor to inquire into the capacity or
powers of any of the Borrower or any of its Subsidiaries or the officers,
directors, partners or agents acting or purporting to act on its behalf, and any
indebtedness made or created in reliance upon the professed exercise of such
powers shall be guaranteed hereunder.

 

12. Application of Payments and Recoveries. All amounts received by the
Administrative Agent pursuant to, or in connection with the enforcement of, this
Guaranty, together with all amounts and other rights and benefits realized by
any Creditor (or to which any Creditor may be entitled) by virtue of this
Guaranty, shall be applied as provided in section 11.3 of the Credit Agreement.

 

13. Enforcement Expenses. The Guarantors hereby jointly and severally agree to
pay, to the extent not paid pursuant to section 13.1 of the Credit Agreement,
all reasonable out-of-pocket costs and expenses of the Administrative Agent and
each other Creditor in connection with the enforcement of this Guaranty and any
amendment, waiver or consent relating hereto (including, without limitation, the
reasonable fees and disbursements of counsel employed by the Administrative
Agent or any of the other Creditors).

 

14. Successors and Assigns. This Guaranty shall be binding upon each Guarantor
and its successors and assigns, and shall inure to the benefit of the
Administrative Agent and the other Creditors and their successors and assigns.

 

15. Entire Agreement. This Guaranty and the other Guaranteed Documents represent
the final agreement among the parties and may not be contradicted by evidence of
prior, contemporaneous or subsequent oral agreements among the parties. There
are no unwritten oral agreements among the parties.

 

9

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16. Amendments and Waivers. Neither this Guaranty nor any provision hereof may
be changed, waived, modified or varied in any manner whatsoever unless in
writing duly signed by (i) the Administrative Agent, acting with the written
consent of the Required Lenders (or to the extent required by section 13.12 of
the Credit Agreement, with the written consent of all of the Lenders, or all of
the Lenders (other than any Defaulting Lender), as applicable); and (ii) each
Guarantor affected thereby (it being understood that the addition or release of
any Guarantor hereunder shall not constitute a change, waiver, modification or
variance affecting any Guarantor other than the Guarantor so added or released),
provided, however, that

 

  (a) no such change, waiver, modification or variance shall be made to section
12, section 28 or this section 16 which adversely affects any Creditor without
the written consent of such Creditor;

 

  (b) any change, waiver, modification or variance which adversely affects the
rights and benefits of a single Class of Creditors (and not all Creditors in a
like or similar manner) shall require the written consent of the Requisite
Creditors of such Class of Creditors; and

 

  (c) any change, waiver, modification or variance which adversely affects the
rights and benefits of less than all of the members of a single Class of
Creditors (and not all Creditors, nor all Creditors of the same Class, in a like
or similar manner) shall require the written consent of each of such members
which is adversely affected thereby.

 

For the purpose of this Guaranty, the term “Class” shall mean each class of
Creditors, i.e., whether (x) the Administrative Agent, the Collateral Agent, the
Letter of Credit Issuers and the Lenders as holders of the Credit Document
Obligations or (y) the Designated Hedge Creditors as holders of the Designated
Hedge Obligations. For the purpose of this Guaranty, the term “Requisite
Creditors” of any Class shall mean (x) with respect to the Credit Document
Obligations, the Required Lenders and (y) with respect to the Designated Hedge
Obligations, the holders of at least 51% of all Designated Hedge Obligations
outstanding from time to time under the Designated Hedge Documents.

 

17. Headings Descriptive. The headings of the several sections of this Guaranty
are inserted for convenience only and shall not in any way affect the meaning or
construction of any provision of this Guaranty.

 

18. Severability. Any provision of this Guaranty which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

19. Right of Setoff. In addition to any rights now or hereafter granted under
applicable law and not by way of limitation of any such rights, upon the
occurrence and during the continuance of an Event of Default (such term to mean
any “Event of Default” as defined in the Credit Agreement or any payment default
under any Designated Hedge Document after any applicable grace period), each
Creditor is hereby authorized at any time or from time to time, without notice
to any Guarantor or to any other person, any such notice being expressly waived,
to set off and to appropriate and apply any and all deposits (general or
special) and any other indebtedness at any time held or owing by such Creditor
to or for the credit or the account of such Guarantor, against and on account of
the obligations and liabilities of such Guarantor to such Creditor under this
Guaranty, irrespective of whether or not the Administrative Agent or such
Creditor shall have made any demand hereunder and although said obligations,
liabilities, deposits or claims, or any of them, shall be contingent or
unmatured. Each Creditor agrees to promptly notify the relevant Guarantor after
any such set off and application, provided, however, that the failure to give
such notice shall not affect the validity of such set off and application.

 

20.

Notices. Except as otherwise expressly provided herein, all notices and other
communications provided for hereunder shall be in writing (including
telegraphic, telex, facsimile transmission or cable communication) and mailed,
telegraphed, telexed, transmitted, cabled or delivered, (i) if to any Guarantor,
at

 

10

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the address specified for it in Annex II to the Credit Agreement (or if no such
address is specified, to it c/o the Company), with a courtesy copy to the
Company at its address specified in or pursuant to the Credit Agreement, (ii) if
to the Administrative Agent, to it at its Notice Office, (iii) if to any Lender,
at its address specified in or pursuant to the Credit Agreement, and (iv) if to
any Designated Hedge Creditor, at such address as such Designated Hedge Creditor
shall have specified in writing to each Guarantor and the Administrative Agent;
or in any case at such other address as any of the persons listed above may
hereafter notify the others in writing. All such notices and communications
shall be mailed, telegraphed, telexed, telecopied, or cabled or sent by
overnight courier, and shall be effective when received.

 

21. Reinstatement. If claim is ever made upon the Administrative Agent or any
other Creditor for rescission, repayment, recovery or restoration of any amount
or amounts received by the Administrative Agent or any other Creditor in payment
or on account of any of the Guaranteed Obligations and any of the aforesaid
payees repays all or part of said amount by reason of (x) any judgment, decree
or order of any court or administrative body having jurisdiction over such payee
or any of its property, or (y) any settlement or compromise of any such claim
effected by such payee with any such claimant (including the Borrower), then and
in such event (i) any such judgment, decree, order, settlement or compromise
shall be binding upon each Guarantor, notwithstanding any revocation hereof or
other instrument evidencing any liability of the Borrower, (ii) each Guarantor
shall be and remain liable to the aforesaid payees hereunder for the amount so
repaid or otherwise recovered or restored to the same extent as if such amount
had never originally been received by any such payee, and (iii) this Guaranty
shall continue to be effective or be reinstated, as the case may be, all as if
such repayment or other recovery had not occurred.

 

22. Governing Law; Venue. (a) THIS GUARANTY AND THE RIGHTS AND OBLIGATIONS OF
THE ADMINISTRATIVE AGENT, THE OTHER CREDITORS AND OF THE UNDERSIGNED HEREUNDER
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE
COMMONWEALTH OF PENNSYLVANIA, NOTWITHSTANDING ITS CONFLICTS OF LAWS RULES. Any
legal action or proceeding with respect to this Guaranty may be brought in the
Courts of the Commonwealth of Pennsylvania, or of the United States of America
for the Western District of Pennsylvania, and, by execution and delivery of this
Guaranty, each Guarantor hereby irrevocably accepts for itself and in respect of
its property, generally and unconditionally, the jurisdiction of the aforesaid
courts. Each Guarantor hereby irrevocably consents to the service of process out
of any of the aforementioned courts in any such action or proceeding by the
mailing of copies thereof by registered mail, return receipt requested, to such
Guarantor at its address provided herein, such service to become effective 30
days after such mailing, or such earlier time as may be provided by applicable
law. Nothing herein shall affect the right of the Administrative Agent or any of
the other Creditors to serve process in any other manner permitted by law or to
commence legal proceedings or otherwise proceed against each Guarantor in any
other jurisdiction.

 

  (b) Each Guarantor hereby irrevocably waives any objection which it may now or
hereafter have to the laying of venue of any of the aforesaid actions or
proceedings arising out of or in connection with this Guaranty or any other
Credit Document or Guaranteed Document brought in the courts referred to in
section 22(a) above and hereby further irrevocably waives and agrees not to
plead or claim in any such court that such action or proceeding brought in any
such court has been brought in an inconvenient forum.

 

23. Sale of Capital Stock of a Guarantor. In the event that all of the capital
stock of one or more Guarantors is sold or otherwise disposed of or liquidated
in compliance with the requirements of section 10.2 of the Credit Agreement (or
such sale or other disposition has been approved in writing by the Required
Lenders (or all Lenders, or all of the Lenders (other than any Defaulting
Lender), as applicable, if required by section 13.12 of the Credit Agreement))
and the proceeds of such sale, disposition or liquidation are applied, to the
extent applicable, in accordance with the provisions of the Credit Agreement,
such Guarantor shall be released from this Guaranty and this Guaranty shall, as
to each such Guarantor or Guarantors, terminate, and have no further force or
effect (it being understood and agreed that the sale of one or more persons that
own, directly or indirectly, all of the capital stock or other equity interests
of any Guarantor shall be deemed to be a sale of such Guarantor for the purposes
of this section 23).

 

24.

Contribution Among Guarantors. Each Guarantor, in addition to the subrogation
rights it shall have against the Borrower under applicable law as a result of
any payment it makes hereunder, shall also have

 

11

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a right of contribution against all other Guarantors in respect of any such
payment pro rata among same based on their respective net fair value as
enterprises, provided any such right of contribution shall be subject and
subordinate to the prior payment in full of the Guaranteed Obligations (and such
Guarantor’s obligations in respect thereof).

 

25. Full Recourse Obligations; Effect of Fraudulent Transfer Laws, etc. It is
the desire and intent of each Guarantor, the Administrative Agent and the other
Creditors that this Guaranty shall be enforced as a full recourse obligation of
each Guarantor to the fullest extent permissible under the laws and public
policies applied in each jurisdiction in which enforcement is sought. If and to
the extent that the obligations of any Guarantor under this Guaranty would, in
the absence of this sentence, be adjudicated to be invalid or unenforceable
because of any applicable state or federal law relating to fraudulent
conveyances or transfers, then the amount of such Guarantor’s liability
hereunder in respect of the Guaranteed Obligations shall be deemed to be reduced
ab initio to that maximum amount which would be permitted without causing such
Guarantor’s obligations hereunder to be so invalidated.

 

26. Payments Free and Clear of Setoffs, Counterclaims and Taxes, etc. (a) All
payments made by any Guarantor hereunder will be made without setoff,
counterclaim or other defense and, except as provided for in section 26(b), all
such payments will be made free and clear of, and without deduction or
withholding for, any present or future taxes, levies, imposts, duties, fees,
assessments or other charges of whatever nature now or hereafter imposed by any
jurisdiction or by any political subdivision or taxing authority thereof or
therein with respect to such payments (but excluding, except as provided in the
second succeeding sentence, any tax, imposed on or measured by the net income or
net profits of a Creditor pursuant to the laws of the jurisdiction under which
such Creditor is organized or the jurisdiction in which the principal office or
Applicable Lending Office of such Creditor is located or any subdivision thereof
or therein) and all interest, penalties or similar liabilities with respect to
such non excluded taxes, levies imposts, duties, fees, assessments or other
charges (all such nonexcluded taxes, levies, imposts, duties, fees, assessments
or other charges being referred to collectively as “Taxes”). If any Taxes are so
levied or imposed, the applicable Guarantor agrees to pay the full amount of
such Taxes and such additional amounts as may be necessary so that every payment
by it of all amounts due hereunder, after withholding or deduction for or on
account of any Taxes will not be less than the amount provided for herein, If
any amounts are payable in respect of Taxes pursuant to the preceding sentence,
the applicable Guarantor agrees to reimburse each Creditor, upon the written
request of such Creditor for taxes imposed on or measured by the net income or
profits of such Creditor pursuant to the laws of the jurisdiction in which such
Creditor is organized or in which the principal office or Applicable Lending
Office of such Creditor is located or under the laws of any political
subdivision or taxing authority of any such jurisdiction in which the principal
office or Applicable Lending Office of such Creditor is located and for any
withholding of income or similar taxes imposed by the United States of America
as such Creditor shall determine are payable by, or withheld from, such Creditor
in respect of such amounts so paid to or on behalf of such Creditor pursuant to
the preceding sentence, which request shall be accompanied by a statement from
such Creditor setting forth, in reasonable detail, the computations used in
determining such amounts. The applicable Guarantor will furnish to the
Administrative Agent within 45 days after the date the payment of any Taxes, or
any withholding or deduction on account thereof, is due pursuant to applicable
law certified copies of tax receipts, or other evidence satisfactory to the
applicable Creditor, evidencing such payment by the applicable Creditor. Each
applicable Guarantor will indemnify and hold harmless the Administrative Agent
and each Creditor, and reimburse the Administrative Agent or such Creditor upon
its written request, for the amount of any Taxes so levied or imposed and paid
or withheld by such Creditor.

 

  (b) Notwithstanding anything to the contrary contained in section 26(a), (i)
any applicable Guarantor shall be entitled, to the extent it is required to do
so by law, to deduct or withhold income or other similar taxes imposed by the
United States (or any political subdivision or taxing authority thereof or
therein) from any amounts payable hereunder for the account of any Creditor
which is not a United States person (as such term is defined in section
7701(a)(30) of the Code) for United States federal income tax purposes and which
has not provided to the Borrower such forms that establish a complete exemption
from such deduction or withholding; and (ii) any applicable Guarantor shall not
be obligated pursuant to section 26(a) hereof to gross-up payments to be made to
a Creditor in respect of income or similar taxes imposed by the United States or
any additional amounts with respect thereto if such Creditor has not provided to
the Borrower such forms.

 

12

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27. Judgment Currency. (a) If for the purposes of obtaining judgment in any
court it is necessary to convert a sum due hereunder in any currency (the
“Original Currency”) into another currency (the “Other Currency”) each
Guarantor, the Administrative Agent and the other Creditors, by their acceptance
of the benefits hereof, agree, to the fullest extent that they may effectively
do so, that the rate of exchange used shall be that at which in accordance with
normal banking procedures the Administrative Agent could purchase the Original
Currency with the Other Currency at the Payment Office on the second Business
Day preceding that on which final judgment is given.

 

  (b) The obligation of a Guarantor in respect of any sum due in the Original
Currency from it to the Administrative Agent or any other Creditor hereunder
shall, notwithstanding any judgment in any Other Currency, be discharged only to
the extent that on the Business Day following receipt by such Creditor or the
Administrative Agent (as the case may be) of any sum adjudged to be so due in
such Other Currency such Creditor or the Administrative Agent (as the case may
be) may in accordance with normal banking procedures purchase U.S. Dollars with
such Other Currency; if the amount of the Original Currency so purchased is less
than the sum originally due to such Creditor or the Administrative Agent (as the
case may be) in the Original Currency, such Guarantor agrees, as a separate
obligation and notwithstanding any such judgment, to indemnify such Creditor or
the Administrative Agent (as the case may be) against such loss, and if the
amount of the Original Currency so purchased exceeds the sum originally due to
the Administrative Agent or any other Creditor (as the case may be) in the
Original Currency, the Administrative Agent or such other Creditor (as the case
may be) agrees to remit to such Guarantor such excess.

 

28. Termination. After the termination of the Total Commitment and all
Designated Hedge Documents, when no Note nor Letter of Credit is outstanding and
when all Loans and other Guaranteed Obligations (other than unasserted indemnity
obligations) have been indefeasibly paid in full, this Guaranty will terminate
and the Administrative Agent, at the request and expense of the Borrower and/or
any of the Guarantors, will execute and deliver to the Guarantors a proper
instrument or instruments acknowledging the satisfaction and termination of this
Guaranty.

 

29. Enforcement Only by Administrative Agent. The Creditors agree that this
Guaranty may be enforced only by the action of the Administrative Agent, acting
upon the instructions of the Required Lenders, and that no Creditor shall have
any right individually to seek to enforce or to enforce this Guaranty, it being
understood and agreed that such rights and remedies may be exercised by the
Administrative Agent, for the benefit of the Creditors, upon the terms of this
Guaranty. The Administrative Agent and the other Creditors further agree that
this Guaranty may not be enforced against any director, officer or employee of
any Guarantor, as such.

 

13

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30. General Limitation on Claims by Guarantors. No claim may be made by any
Guarantor against the Administrative Agent or any other Creditor, or the
Affiliates, directors, officers, employees, attorneys or agents of any of them,
for any damages other than actual compensatory damages in respect of any claim
for breach of contract or any other theory of liability arising out of or
related to the transactions contemplated by this Guaranty or any of the other
Guaranteed Documents, or any act, omission or event occurring in connection
therewith; and each Guarantor hereby, to the fullest extent permitted under
applicable law, waives, releases and agrees not to sue or counterclaim upon any
such claim for any special, consequential or punitive damages, whether or not
accrued and whether or not known or suspected to exist in its favor.

 

31. Attorneys, Accountants, etc. of Creditors Have No Duty to Guarantors. All
attorneys, accountants, appraisers, consultants and other professional persons
(including the firms or other entities on behalf of which any such person may
act) retained by the Administrative Agent or any other Creditor with respect to
the transactions contemplated by the Guaranteed Documents shall have the right
to act exclusively in the interest of the Administrative Agent or such other
Creditor, as the case may be, and shall have no duty of disclosure, duty of
loyalty, duty of care, or other duty or obligation of any type or nature
whatsoever to any Guarantor, to any of its Affiliates, or to any other person,
with respect to any matters within the scope of such representation or related
to their activities in connection with such representation. Each Guarantor
agrees, on behalf of itself and its Affiliates, not to assert any claim or
counterclaim against any such persons with regard to such matters, all such
claims and counterclaims, now existing or hereafter arising, whether known or
unknown, foreseen or unforeseeable, being hereby waived, released and forever
discharged.

 

32. Creditors Not Fiduciary to Guarantors, etc. The relationship among any
Guarantor and its Affiliates, on the one hand, and the Administrative Agent and
the other Creditors, on the other hand, is solely that of debtor and creditor,
and the Administrative Agent and the other Creditors have no fiduciary or other
special relationship with any Guarantor or any of its Affiliates, and no term or
provision of any Guaranteed Document, no course of dealing, no written or oral
communication, or other action, shall be construed so as to deem such
relationship to be other than that of debtor and creditor.

 

33. Counterparts. This Guaranty may be executed in any number of counterparts
and by the different parties hereto on separate counterparts, each of which when
so executed and delivered shall be an original, but all of which shall together
constitute one and the same instrument. A set of counterparts executed by all
the parties hereto shall be lodged with the Company and the Administrative
Agent.

 

14

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34. Waiver of Jury Trial. EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH
OTHER CREDITOR (BY THEIR ACCEPTANCE OF THE BENEFITS HEREOF) HEREBY IRREVOCABLY
WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO THIS GUARANTY OR ANY OF THE OTHER CREDIT DOCUMENTS
(INCLUDING, WITHOUT LIMITATION, ANY AMENDMENTS, WAIVERS OR OTHER MODIFICATIONS
RELATING TO ANY OF THE FOREGOING), OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY. EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH OTHER CREDITOR (BY
THEIR ACCEPTANCE OF THE BENEFITS HEREOF) HEREBY (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
PERSONS PARTY HERETO OR BENEFITTED HEREBY HAVE BEEN INDUCED TO ENTER INTO OR
ACCEPT THE BENEFITS OF THIS GUARANTY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS PARAGRAPH.

 

[Remainder of page intentionally left blank.]

 

15

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IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be executed and
delivered as of the date first above written.

 

CALGON CARBON INVESTMENTS INC.,
as a Guarantor

By:   /s/    MICHAEL J. MOCNIAK            

--------------------------------------------------------------------------------

Name:

  Michael J. Mocniak

Title:

  Vice President and Secretary

BSC COLUMBUS, LLC,
as a Guarantor

By:   /s/    MICHAEL J. MOCNIAK            

--------------------------------------------------------------------------------

Name:

  Michael J. Mocniak

Title:

  Manager

CCC COLUMBUS, LLC,
as a Guarantor

By:   /s/    MICHAEL J. MOCNIAK            

--------------------------------------------------------------------------------

Name:

  Michael J. Mocniak

Title:

  Manager

CCC DISTRIBUTION, LLC,
as a Guarantor

By:   /s/    MICHAEL J. MOCNIAK            

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Name:

  Michael J. Mocniak

Title:

  Manager

NATIONAL CITY BANK OF PENNSYLVANIA,
as Administrative Agent

By:        

--------------------------------------------------------------------------------

Name:

  Lori B. Shure

Title:

  Vice President

 

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IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be executed and
delivered as of the date first above written.

 

CALGON CARBON INVESTMENTS INC.,
as a Guarantor

By:        

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Name:

       

--------------------------------------------------------------------------------

Title:

       

--------------------------------------------------------------------------------

BSC COLUMBUS, LLC,
as a Guarantor

By:        

--------------------------------------------------------------------------------

Name:

       

--------------------------------------------------------------------------------

Title:

       

--------------------------------------------------------------------------------

CCC COLUMBUS, LLC,
as a Guarantor

By:        

--------------------------------------------------------------------------------

Name:

       

--------------------------------------------------------------------------------

Title:

       

--------------------------------------------------------------------------------

CCC DISTRIBUTION, LLC,
as a Guarantor

By:        

--------------------------------------------------------------------------------

Name:

       

--------------------------------------------------------------------------------

Title:

       

--------------------------------------------------------------------------------

NATIONAL CITY BANK OF PENNSYLVANIA,
as Administrative Agent

By:   /s/    LORI B. SHURE            

--------------------------------------------------------------------------------

Name:

  Lori B. Shure

Title:

  Vice President

 

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GENERAL REVOLVING NOTE

 

$32,000,000.00

Pittsburgh, Pennsylvania

 

February 18, 2004

 

FOR VALUE RECEIVED, the undersigned CALGON CARBON CORPORATION, a Delaware
corporation (herein, together with its successors and assigns, the “Borrower”),
hereby promises to pay to the order of NATIONAL CITY BANK OF PENNSYLVANIA (the
“Lender”), in lawful money of the United States of America, provided that
General Revolving Loans denominated in an Alternative Currency shall be payable
in such Alternative Currency, in immediately available funds, at the Payment
Office (such term and certain other terms used herein without definition shall
have the meanings ascribed thereto in the Credit Agreement referred to below) of
National City Bank of Pennsylvania (the “Administrative Agent”), on the Maturity
Date, the principal sum of THIRTY TWO MILLION DOLLARS AND NO CENTS
($32,000,000.00) or, if less, the then unpaid principal amount of all General
Revolving Loans made by the Lender to the Borrower pursuant to the Credit
Agreement.

 

The Borrower promises also to pay interest on the unpaid principal amount of
each General Revolving Loan made by the Lender to the Borrower in like money at
said office from the date hereof until paid at the rates and at the times
provided in section 2.8 of the Agreement.

 

This Note is one of the General Revolving Notes referred to in the Credit
Agreement, dated as of February 18, 2004, among the Borrower, the financial
institutions from time to time party thereto (including the Lender), and
National City Bank of Pennsylvania, as Administrative Agent (as from time to
time in effect, the “Credit Agreement”), and is entitled to the benefits thereof
and of the other Credit Documents (as defined in the Credit Agreement). As
provided in the Credit Agreement, this Note is subject to mandatory prepayment
prior to the Maturity Date, in whole or in part.

 

In case an Event of Default shall occur and be continuing, the principal of and
accrued interest on this Note may be declared to be due and payable in the
manner and with the effect provided in the Credit Agreement.

 

The Borrower hereby waives presentment, demand, protest or notice of any kind in
connection with this Note. No failure to exercise, or delay in exercising, any
rights hereunder on the part of the holder hereof shall operate as a waiver of
any such rights.

 

[Remainder of page intentionally left blank.]

 

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THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF
THE COMMONWEALTH OF PENNSYLVANIA.

 

CALGON CARBON CORPORATION

By:

  /s/    LEROY M. BALL            

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Name:

  Leroy M. Ball

Title:

  Vice President and Chief Financial Officer

 

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LOANS AND PAYMENTS OF PRINCIPAL

 

Date of

Notation

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Amount of Loan

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Type of Loan

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Interest Period

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Amount of Principal
Paid or Prepaid

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Unpaid Principal
Balance

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Made By

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GENERAL REVOLVING NOTE

 

$22,000,000.00

   

Pittsburgh, Pennsylvania

  February 18, 2004

 

FOR VALUE RECEIVED, the undersigned CALGON CARBON CORPORATION, a Delaware
corporation (herein, together with its successors and assigns, the “Borrower”),
hereby promises to pay to the order of FIFTH THIRD BANK (the “Lender”), in
lawful money of the United States of America, provided that General Revolving
Loans denominated in an Alternative Currency shall be payable in such
Alternative Currency, in immediately available funds, at the Payment Office
(such term and certain other terms used herein without definition shall have the
meanings ascribed thereto in the Credit Agreement referred to below) of National
City Bank of Pennsylvania (the “Administrative Agent”), on the Maturity Date,
the principal sum of TWENTY TWO MILLION DOLLARS AND NO CENTS ($22,000,000.00)
or, if less, the then unpaid principal amount of all General Revolving Loans
made by the Lender to the Borrower pursuant to the Credit Agreement.

 

The Borrower promises also to pay interest on the unpaid principal amount of
each General Revolving Loan made by the Lender to the Borrower in like money at
said office from the date hereof until paid at the rates and at the times
provided in section 2.8 of the Agreement.

 

This Note is one of the General Revolving Notes referred to in the Credit
Agreement, dated as of February 18, 2004, among the Borrower, the financial
institutions from time to time party thereto (including the Lender), and
National City Bank of Pennsylvania, as Administrative Agent (as from time to
time in effect, the “Credit Agreement”), and is entitled to the benefits thereof
and of the other Credit Documents (as defined in the Credit Agreement). As
provided in the Credit Agreement, this Note is subject to mandatory prepayment
prior to the Maturity Date, in whole or in part.

 

In case an Event of Default shall occur and be continuing, the principal of and
accrued interest on this Note may be declared to be due and payable in the
manner and with the effect provided in the Credit Agreement.

 

The Borrower hereby waives presentment, demand, protest or notice of any kind in
connection with this Note. No failure to exercise, or delay in exercising, any
rights hereunder on the part of the holder hereof shall operate as a waiver of
any such rights.

 

[Remainder of page intentionally left blank.]

 

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THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF
THE COMMONWEALTH OF PENNSYLVANIA.

 

CALGON CARBON CORPORATION By:   /s/    LEROY M. BALL            

--------------------------------------------------------------------------------

Name:   Leroy M. Ball Title:   Vice President and Chief Financial Officer

 

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LOANS AND PAYMENTS OF PRINCIPAL

 

Date of

Notation

--------------------------------------------------------------------------------

 

Amount of

Loan

--------------------------------------------------------------------------------

 

Type of Loan

--------------------------------------------------------------------------------

 

Interest

Period

--------------------------------------------------------------------------------

 

Amount of

Principal

Paid or

Prepaid

--------------------------------------------------------------------------------

 

Unpaid

Principal

Balance

--------------------------------------------------------------------------------

 

Made By

--------------------------------------------------------------------------------

                         

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GENERAL REVOLVING NOTE

 

$24,500,000.00

Pittsburgh, Pennsylvania

 

February 18, 2004

 

FOR VALUE RECEIVED, the undersigned CALGON CARBON CORPORATION, a Delaware
corporation (herein, together with its successors and assigns, the “Borrower”),
hereby promises to pay to the order of PNC BANK, NATIONAL ASSOCIATION (the
“Lender”), in lawful money of the United States of America, provided that
General Revolving Loans denominated in an Alternative Currency shall be payable
in such Alternative Currency, in immediately available funds, at the Payment
Office (such term and certain other terms used herein without definition shall
have the meanings ascribed thereto in the Credit Agreement referred to below) of
National City Bank of Pennsylvania (the “Administrative Agent”), on the Maturity
Date, the principal sum of TWENTY FOUR MILLION FIVE HUNDRED THOUSAND DOLLARS AND
NO CENTS ($24,500,000.00) or, if less, the then unpaid principal amount of all
General Revolving Loans made by the Lender to the Borrower pursuant to the
Credit Agreement.

 

The Borrower promises also to pay interest on the unpaid principal amount of
each General Revolving Loan made by the Lender to the Borrower in like money at
said office from the date hereof until paid at the rates and at the times
provided in section 2.8 of the Agreement.

 

This Note is one of the General Revolving Notes referred to in the Credit
Agreement, dated as of February 18, 2004, among the Borrower, the financial
institutions from time to time party thereto (including the Lender), and
National City Bank of Pennsylvania, as Administrative Agent (as from time to
time in effect, the “Credit Agreement”), and is entitled to the benefits thereof
and of the other Credit Documents (as defined in the Credit Agreement). As
provided in the Credit Agreement, this Note is subject to mandatory prepayment
prior to the Maturity Date, in whole or in part.

 

In case an Event of Default shall occur and be continuing, the principal of and
accrued interest on this Note may be declared to be due and payable in the
manner and with the effect provided in the Credit Agreement.

 

The Borrower hereby waives presentment, demand, protest or notice of any kind in
connection with this Note. No failure to exercise, or delay in exercising, any
rights hereunder on the part of the holder hereof shall operate as a waiver of
any such rights.

 

[Remainder of page intentionally left blank.]

 

--------------------------------------------------------------------------------

THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF
THE COMMONWEALTH OF PENNSYLVANIA.

 

CALGON CARBON CORPORATION

By:

  /s/    Leroy M. Ball            

--------------------------------------------------------------------------------

Name:

  Leroy M. Ball

Title:

  Vice President and Chief Financial Officer

 

--------------------------------------------------------------------------------

LOANS AND PAYMENTS OF PRINCIPAL

 

Date of

Notation

--------------------------------------------------------------------------------

 

Amount of Loan

--------------------------------------------------------------------------------

 

Type of Loan

--------------------------------------------------------------------------------

 

Interest Period

--------------------------------------------------------------------------------

 

Amount of Principal
Paid or Prepaid

--------------------------------------------------------------------------------

 

Unpaid Principal
Balance

--------------------------------------------------------------------------------

 

Made By

--------------------------------------------------------------------------------

                         

--------------------------------------------------------------------------------

                         

--------------------------------------------------------------------------------

                         

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GENERAL REVOLVING NOTE

 

$24,500,000.00

   

Pittsburgh, Pennsylvania

  February 18, 2004

 

FOR VALUE RECEIVED, the undersigned CALGON CARBON CORPORATION, a Delaware
corporation (herein, together with its successors and assigns, the “Borrower”),
hereby promises to pay to the order of WACHOVIA BANK, NATIONAL ASSOCIATION (the
“Lender”), in lawful money of the United States of America, provided that
General Revolving Loans denominated in an Alternative Currency shall be payable
in such Alternative Currency, in immediately available funds, at the Payment
Office (such term and certain other terms used herein without definition shall
have the meanings ascribed thereto in the Credit Agreement referred to below) of
National City Bank of Pennsylvania (the “Administrative Agent”), on the Maturity
Date, the principal sum of TWENTY FOUR MILLION FIVE HUNDRED THOUSAND DOLLARS AND
NO CENTS ($24,500,000.00) or, if less, the then unpaid principal amount of all
General Revolving Loans made by the Lender to the Borrower pursuant to the
Credit Agreement.

 

The Borrower promises also to pay interest on the unpaid principal amount of
each General Revolving Loan made by the Lender to the Borrower in like money at
said office from the date hereof until paid at the rates and at the times
provided in section 2.8 of the Agreement.

 

This Note is one of the General Revolving Notes referred to in the Credit
Agreement, dated as of February 18, 2004, among the Borrower, the financial
institutions from time to time party thereto (including the Lender), and
National City Bank of Pennsylvania, as Administrative Agent (as from time to
time in effect, the “Credit Agreement”), and is entitled to the benefits thereof
and of the other Credit Documents (as defined in the Credit Agreement). As
provided in the Credit Agreement, this Note is subject to mandatory prepayment
prior to the Maturity Date, in whole or in part.

 

In case an Event of Default shall occur and be continuing, the principal of and
accrued interest on this Note may be declared to be due and payable in the
manner and with the effect provided in the Credit Agreement.

 

The Borrower hereby waives presentment, demand, protest or notice of any kind in
connection with this Note. No failure to exercise, or delay in exercising, any
rights hereunder on the part of the holder hereof shall operate as a waiver of
any such rights.

 

[Remainder of page intentionally left blank.]

 

--------------------------------------------------------------------------------

THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF
THE COMMONWEALTH OF PENNSYLVANIA.

 

CALGON CARBON CORPORATION By:   /s/    LEROY M. BALL            

--------------------------------------------------------------------------------

Name:   Leroy M. Ball Title:   Vice President and Chief Financial Officer

 

--------------------------------------------------------------------------------

LOANS AND PAYMENTS OF PRINCIPAL

 

Date of

Notation

--------------------------------------------------------------------------------

 

Amount of

Loan

--------------------------------------------------------------------------------

 

Type of Loan

--------------------------------------------------------------------------------

 

Interest

Period

--------------------------------------------------------------------------------

 

Amount of

Principal

Paid or

Prepaid

--------------------------------------------------------------------------------

 

Unpaid

Principal Balance

--------------------------------------------------------------------------------

 

Made By

--------------------------------------------------------------------------------

                         

--------------------------------------------------------------------------------

                         

--------------------------------------------------------------------------------

                         

--------------------------------------------------------------------------------

                         

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GENERAL REVOLVING NOTE

 

$22,000,000.00

   

Pittsburgh, Pennsylvania

  February 18, 2004

 

FOR VALUE RECEIVED, the undersigned CALGON CARBON CORPORATION, a Delaware
corporation (herein, together with its successors and assigns, the “Borrower”),
hereby promises to pay to the order of FLEET NATIONAL BANK (the “Lender”), in
lawful money of the United States of America, provided that General Revolving
Loans denominated in an Alternative Currency shall be payable in such
Alternative Currency, in immediately available funds, at the Payment Office
(such term and certain other terms used herein without definition shall have the
meanings ascribed thereto in the Credit Agreement referred to below) of National
City Bank of Pennsylvania (the “Administrative Agent”), on the Maturity Date,
the principal sum of TWENTY TWO MILLION DOLLARS AND NO CENTS ($22,000,000.00)
or, if less, the then unpaid principal amount of all General Revolving Loans
made by the Lender to the Borrower pursuant to the Credit Agreement.

 

The Borrower promises also to pay interest on the unpaid principal amount of
each General Revolving Loan made by the Lender to the Borrower in like money at
said office from the date hereof until paid at the rates and at the times
provided in section 2.8 of the Agreement.

 

This Note is one of the General Revolving Notes referred to in the Credit
Agreement, dated as of February 18, 2004, among the Borrower, the financial
institutions from time to time party thereto (including the Lender), and
National City Bank of Pennsylvania, as Administrative Agent (as from time to
time in effect, the “Credit Agreement”), and is entitled to the benefits thereof
and of the other Credit Documents (as defined in the Credit Agreement). As
provided in the Credit Agreement, this Note is subject to mandatory prepayment
prior to the Maturity Date, in whole or in part.

 

In case an Event of Default shall occur and be continuing, the principal of and
accrued interest on this Note may be declared to be due and payable in the
manner and with the effect provided in the Credit Agreement.

 

The Borrower hereby waives presentment, demand, protest or notice of any kind in
connection with this Note. No failure to exercise, or delay in exercising, any
rights hereunder on the part of the holder hereof shall operate as a waiver of
any such rights.

 

[Remainder of page intentionally left blank.]

 

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THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF
THE COMMONWEALTH OF PENNSYLVANIA.

 

CALGON CARBON CORPORATION By:   /s/    LEROY M. BALL            

--------------------------------------------------------------------------------

Name:   Leroy M. Ball Title:   Vice President and Chief Financial Officer

 

--------------------------------------------------------------------------------

LOANS AND PAYMENTS OF PRINCIPAL

 

Date of

Notation

--------------------------------------------------------------------------------

 

Amount of

Loan

--------------------------------------------------------------------------------

 

Type of Loan

--------------------------------------------------------------------------------

 

Interest

Period

--------------------------------------------------------------------------------

 

Amount of

Principal

Paid or

Prepaid

--------------------------------------------------------------------------------

 

Unpaid

Principal

Balance

--------------------------------------------------------------------------------

 

Made By

--------------------------------------------------------------------------------

                         

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SWING LINE REVOLVING NOTE

 

$10,000,000

   

Pittsburgh, Pennsylvania

  February 18, 2004

 

FOR VALUE RECEIVED, the undersigned CALGON CARBON CORPORATION, a Delaware
corporation (herein, together with its successors and assigns, the “Borrower”),
hereby promises to pay to the order of NATIONAL CITY BANK OF PENNSYLVANIA (the
“Lender”), in lawful money of the United States of America in immediately
available funds, at the Payment Office (such term and certain other terms used
herein without definition shall have the meanings ascribed thereto in the Credit
Agreement referred to below) of National City Bank of Pennsylvania (the
“Administrative Agent”), the principal sum of TEN MILLION DOLLARS AND NO CENTS
($10,000,000) or, if less, the then unpaid principal amount of all Swing Line
Revolving Loans made by the Lender to the Borrower pursuant to the Credit
Agreement. The Borrower will pay the principal amount of any Swing Line
Revolving Loan no later than the Maturity Date.

 

The Borrower promises also to pay interest on the unpaid principal amount of
each Swing Line Revolving Loan made by the Lender in like money at said office
from the date hereof until paid at the rates and at the times provided in
section 2.8 of the Credit Agreement.

 

This Note is the Swing Line Revolving Note referred to in the Credit Agreement,
dated as of February 18, 2004, among the Borrower, the financial institutions
from time to time party thereto (including the Lender), and National City Bank
of Pennsylvania, as Administrative Agent (as from time to time in effect, the
“Credit Agreement”), and is entitled to the benefits thereof and of the other
Credit Documents (as defined in the Credit Agreement). As provided in the
Agreement, this Note is subject to mandatory prepayment prior to the maturity
date of any Swing Line Revolving Loan, in whole or in part.

 

In case an Event of Default shall occur and be continuing, the principal of and
accrued interest on this Note may be declared to be due and payable in the
manner and with the effect provided in the Credit Agreement.

 

The Borrower hereby waives presentment, demand, protest or notice of any kind in
connection with this Note. No failure to exercise, or delay in exercising, any
rights hereunder on the part of the holder hereof shall operate as a waiver of
any such rights.

 

[Remainder of page intentionally left blank.]

 

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THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF
THE COMMONWEALTH OF PENNSYLVANIA.

 

CALGON CARBON CORPORATION By:   /s/    LEROY M. BALL            

--------------------------------------------------------------------------------

Name:   Leroy M. Ball Title:   Vice President and Chief Financial Officer

 

--------------------------------------------------------------------------------

LOANS AND PAYMENTS OF PRINCIPAL

 

Date of

Notation

--------------------------------------------------------------------------------

 

Amount of

Loan

--------------------------------------------------------------------------------

 

Type of

Loan/or

Interest Rate

--------------------------------------------------------------------------------

 

Maturity

--------------------------------------------------------------------------------

 

Amount of

Principal

Paid or

Prepaid

--------------------------------------------------------------------------------

 

Unpaid

Principal

Balance

--------------------------------------------------------------------------------

 

Made By

--------------------------------------------------------------------------------

                         

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