Prepared by R.R. Donnelley Financial -- Credit Agreement


Table of Contents


 EXHIBIT 10.12 
  
 
 
 CREDIT AGREEMENT 
  
 among 
  
 STERIS CORPORATION, 
 as Borrower, 
  
 KEYBANK NATIONAL
ASSOCIATION, 
 as Agent, Lead Arranger 
 and Book
Runner, 
  
 LASALLE BANK NATIONAL ASSOCIATION, 
 as Documentation Agent, 
  
 and 
  
 THE BANK OF NEW YORK, 
  
 NATIONAL CITY BANK, 
  
 PNC BANK, NATIONAL ASSOCIATION 
  
 and 
  
 HARRIS TRUST AND SAVINGS BANK, 
 as Co-Agents, 
  
 and 
  
 THE LENDING INSTITUTIONS PARTIES HERETO 

as Lenders 
  
 
 
 dated as of 
 March 28, 2002 
  
 
 
 






Table of Contents


 
TABLE OF CONTENTS 
  
 
	  	  	  	  	 Page
 

	 ARTICLE I.
 	  	 
DEFINITIONS
 	  	 2
 
	 Section 1.01
 	  	 
Definitions
 	  	 2
 
	 Section 1.02
 	  	 
Accounting Terms
 	  	 17
 
	 Section 1.03
 	  	 
Terms Generally
 	  	 17
 
	 ARTICLE II.
 	  	 
AMOUNT AND TERMS OF CREDIT
 	  	 17
 
	 Section 2.01
 	  	 
Commitment
 	  	 17
 
	 Section 2.02
 	  	 
Loans
 	  	 17
 
	 Section 2.03
 	  	 
Notice of Credit Event; Funding of Loans Etc
 	  	 19
 
	 Section 2.04
 	  	 
Interest
 	  	 20
 
	 Section 2.05
 	  	 
Evidence of Indebtedness
 	  	 21
 
	 Section 2.06
 	  	 
Payment on Notes, Etc
 	  	 21
 
	 Section 2.07
 	  	 
Payments Net of Taxes
 	  	 22
 
	 Section 2.08
 	  	 
Prepayment
 	  	 23
 
	 Section 2.09
 	  	 
Facility and Other Fees
 	  	 24
 
	 Section 2.10
 	  	 
Reduction of Commitment
 	  	 24
 
	 Section 2.11
 	  	 
Computation of Interest and Fees
 	  	 25
 
	 Section 2.12
 	  	 
Mandatory Payment
 	  	 25
 
	 Section 2.13
 	  	 
Extension of Commitment
 	  	 25
 
	 ARTICLE III.
 	  	 
ADDITIONAL PROVISIONS RELATING TO FIXED RATE LOANS; INCREASED CAPITAL; TAXES
 	  	 26
 
	 Section 3.01
 	  	 
Reserves or Deposit Requirements, Etc
 	  	 26
 
	 Section 3.02
 	  	 
Tax Law, Etc.
 	  	 26
 
	 Section 3.03
 	  	 
Eurodollar or Alternate Currency Deposits Unavailable or Interest Rate Unascertainable
 	  	 27
 
	 Section 3.04
 	  	 
Indemnity
 	  	 27
 
	 Section 3.05
 	  	 
Changes in Law Rendering Fixed Rate Loans Unlawful
 	  	 27
 
	 Section 3.06
 	  	 
Funding
 	  	 28
 
	 Section 3.07
 	  	 
Capital Adequacy
 	  	 28
 

 
 

 -i- 







Table of Contents


 TABLE OF CONTENTS 
 (continued)

  
 
	  	  	  	  	 Page
 

	 ARTICLE IV.
 	  	 
REPRESENTATIONS AND WARRANTIES 
 	  	 29
 
	 Section 4.01
 	  	 
Corporate Existence; Subsidiaries; Foreign Qualification
 	  	 29
 
	 Section 4.02
 	  	 
Corporate Authority
 	  	 29
 
	 Section 4.03
 	  	 
Compliance With Laws
 	  	 29
 
	 Section 4.04
 	  	 
Litigation and Administrative Proceedings
 	  	 30
 
	 Section 4.05
 	  	 
Title to Assets
 	  	 30
 
	 Section 4.06
 	  	 
Liens and Security Interests
 	  	 30
 
	 Section 4.07
 	  	 
Tax Returns
 	  	 30
 
	 Section 4.08
 	  	 
Environmental Laws
 	  	 30
 
	 Section 4.09
 	  	 
Employee Benefits Plans
 	  	 31
 
	 Section 4.10
 	  	 
Consents or Approvals
 	  	 31
 
	 Section 4.11
 	  	 
Solvency
 	  	 32
 
	 Section 4.12
 	  	 
Financial Statements
 	  	 32
 
	 Section 4.13
 	  	 
Regulations
 	  	 32
 
	 Section 4.14
 	  	 
Material Agreements
 	  	 32
 
	 Section 4.15
 	  	 
Intellectual Property
 	  	 32
 
	 Section 4.16
 	  	 
Insurance
 	  	 32
 
	 Section 4.17
 	  	 
Investment Company; Holding Company
 	  	 32
 
	 Section 4.18
 	  	 
Accurate and Complete Statements
 	  	 33
 
	 Section 4.19
 	  	 
Defaults
 	  	 33
 
	 ARTICLE V.
 	  	 
COVENANTS
 	  	 33
 
	 Section 5.01
 	  	 
Insurance
 	  	 33
 
	 Section 5.02
 	  	 
Money Obligations
 	  	 33
 
	 Section 5.03
 	  	 
Financial Statements
 	  	 33
 
	 Section 5.04
 	  	 
Financial Records
 	  	 34
 
	 Section 5.05
 	  	 
Franchises
 	  	 34
 
	 Section 5.06
 	  	 
ERISA Compliance
 	  	 34
 
	 Section 5.07
 	  	 
Financial Covenants
 	  	 35
 
	 Section 5.08
 	  	 
Borrowing
 	  	 35
 

 
 

 -ii- 







Table of Contents


  
 TABLE OF CONTENTS 
 (continued) 
  
 
	  	  	  	  	 Page
 

	 Section 5.09
 	  	 
Liens
 	  	 36
 
	 Section 5.10
 	  	 
Regulations U and X
 	  	 37
 
	 Section 5.11
 	  	 
Investments and Loans
 	  	 37
 
	 Section 5.12
 	  	 
Mergers and Asset Sales
 	  	 38
 
	 Section 5.13
 	  	 
Acquisitions
 	  	 39
 
	 Section 5.14
 	  	 
Share Repurchases
 	  	 39
 
	 Section 5.15
 	  	 
Notice
 	  	 39
 
	 Section 5.16
 	  	 
Environmental Compliance
 	  	 39
 
	 Section 5.17
 	  	 
Affiliate Transactions
 	  	 40
 
	 Section 5.18
 	  	 
Use of Proceeds
 	  	 40
 
	 Section 5.19
 	  	 
Corporate Names
 	  	 40
 
	 Section 5.20
 	  	 
Subsidiary Guaranties
 	  	 40
 
	 Section 5.21
 	  	 
Pledge of Stock of Foreign Subsidiaries
 	  	 41
 
	 Section 5.22
 	  	 
Other Covenants
 	  	 41
 
	 Section 5.23
 	  	 
Amendment of Organizational Documents
 	  	 41
 
	 Section 5.24
 	  	 
Guaranties of Payment; Guaranty Under Material Indebtedness Agreement
 	  	 41
 
	 Section 5.25
 	  	 
Pari Passu Ranking
 	  	 41
 
	 Section 5.26
 	  	 
Supplements to Schedules
 	  	 41
 
	 ARTICLE VI.
 	  	 
CONDITIONS PRECEDENT
 	  	 42
 
	 Section 6.01
 	  	 
All Credit Events
 	  	 42
 
	 Section 6.02
 	  	 
Effectiveness of Agreement
 	  	 42
 
	 ARTICLE VII.
 	  	 
EVENTS OF DEFAULT
 	  	 44
 
	 Section 7.01
 	  	 
Payments
 	  	 44
 
	 Section 7.02
 	  	 
Special Covenants
 	  	 44
 
	 Section 7.03
 	  	 
Other Covenants
 	  	 44
 
	 Section 7.04
 	  	 
Representations and Warranties
 	  	 44
 
	 Section 7.05
 	  	 
Cross Default
 	  	 44
 
	 Section 7.06
 	  	 
ERISA Default
 	  	 44
 

 
 

 -iii- 







Table of Contents


  
 TABLE OF CONTENTS 
 (continued) 
  
 
	  	  	  	  	 Page
 

	 Section 7.07
 	  	 
Change in Control
 	  	 44
 
	 Section 7.08
 	  	 
Money Judgment
 	  	 44
 
	 Section 7.09
 	  	 
Validity of Loan Documents
 	  	 45
 
	 Section 7.10
 	  	 
Solvency
 	  	 45
 
	 ARTICLE VIII.
 	  	 
REMEDIES UPON DEFAULT
 	  	 45
 
	 Section 8.01
 	  	 
Optional Defaults
 	  	 45
 
	 Section 8.02
 	  	 
Automatic Defaults
 	  	 46
 
	 Section 8.03
 	  	 
Offsets
 	  	 46
 
	 Section 8.04
 	  	 
Equalization Provision
 	  	 46
 
	 ARTICLE IX.
 	  	 
THE AGENT
 	  	 47
 
	 Section 9.01
 	  	 
Appointment and Authorization
 	  	 47
 
	 Section 9.02
 	  	 
Note Holders
 	  	 47
 
	 Section 9.03
 	  	 
Consultation With Counsel
 	  	 47
 
	 Section 9.04
 	  	 
Documents
 	  	 47
 
	 Section 9.05
 	  	 
Agent and Affiliates
 	  	 47
 
	 Section 9.06
 	  	 
Knowledge of Default
 	  	 47
 
	 Section 9.07
 	  	 
Action by Agent
 	  	 47
 
	 Section 9.08
 	  	 
Notices, Default, Etc
 	  	 48
 
	 Section 9.09
 	  	 
Indemnification of Agent
 	  	 48
 
	 Section 9.10
 	  	 
Successor Agent
 	  	 48
 
	 Section 9.11
 	  	 
Other Agent
 	  	 48
 
	 ARTICLE X.
 	  	 
MISCELLANEOUS
 	  	 49
 
	 Section 10.01
 	  	 
Lenders’ Independent Investigation
 	  	 49
 
	 Section 10.02
 	  	 
No Waiver; Cumulative Remedies
 	  	 49
 
	 Section 10.03
 	  	 
Amendments, Consents
 	  	 49
 
	 Section 10.04
 	  	 
Notices
 	  	 50
 
	 Section 10.05
 	  	 
Costs, Expenses and Taxes
 	  	 50
 
	 Section 10.06
 	  	 
Indemnification
 	  	 50
 

 
 

 -iv- 







Table of Contents


  
 TABLE OF CONTENTS 
 (continued) 
  
 
	  	  	  	  	 Page
 

	 Section 10.07
 	  	 
Obligations Several; No Fiduciary Obligations
 	  	 50
 
	 Section 10.08
 	  	 
Execution in Counterparts
 	  	 51
 
	 Section 10.09
 	  	 
Binding Effect; Borrower’s Assignment
 	  	 51
 
	 Section 10.10
 	  	 
Assignments
 	  	 51
 
	 Section 10.11
 	  	 
Participations
 	  	 53
 
	 Section 10.12
 	  	 
Severability of Provisions; Captions; Attachments
 	  	 54
 
	 Section 10.13
 	  	 
Designation
 	  	 54
 
	 Section 10.14
 	  	 
Judgment Currency
 	  	 55
 
	 Section 10.15
 	  	 
Investment Purpose
 	  	 55
 
	 Section 10.16
 	  	 
Entire Agreement
 	  	 55
 
	 Section 10.17
 	  	 
Governing Law; Submission to Jurisdiction
 	  	 55
 
	 Section 10.18
 	  	 
Legal Representation of Parties
 	  	 56
 
	 Section 10.19
 	  	 
Source of Funds
 	  	 56
 
	 Section 10.20
 	  	 
Jury Trial Waiver
 	  	  

 
 

 -v- 







Table of Contents


  
 EXHIBIT 10.12 
  
 This CREDIT AGREEMENT (as the same may from time to time be amended, restated or otherwise modified, this “Agreement”) is effective as of March 28, 2002,
among: 
  
 (a)  STERIS CORPORATION, an Ohio corporation (“Borrower”);

  
 (b)  the lending institutions listed on Schedule 1 hereto and each other lending
institution that becomes a party hereto pursuant to Section 10.10 hereof (collectively, the “Lenders” and, individually, each a “Lender”); 
  
 (c)  KEYBANK NATIONAL ASSOCIATION, as administrative agent for the Lenders under this Agreement (together with any successor agent appointed
pursuant to Section 9.10 hereof, “Agent”) and as Lead Arranger and Book Runner; 
  
 (d)  LASALLE BANK NATIONAL ASSOCIATION, as documentation agent under this Agreement (the “Documentation Agent”) 
  
 (e)  THE BANK OF NEW YORK, as a co-agent under this Agreement (“Co-Agent”); 
  

(f)  NATIONAL CITY BANK, as a co-agent under this Agreement (“Co-Agent”); 
  
 (g)  HARRIS TRUST AND SAVINGS BANK, as a co-agent under this Agreement (“Co-Agent”); and

  
 (h)  PNC BANK, NATIONAL ASSOCIATION, as a co-agent under this Agreement
(“Co-Agent”). 
  
 INTRODUCTORY STATEMENT: 
  
 Borrower, Agent and the Lenders desire to contract for the establishment of credits in the aggregate principal amounts hereinafter set forth, to be made available to
Borrower upon the terms and subject to the conditions hereinafter set forth. 
  
 AGREEMENT: 
  
 In consideration of the mutual covenants contained herein, the parties hereto agree as follows: 
 








Table of Contents


  
 ARTICLE I. 
  
 
DEFINITIONS 
  
 Section 1.01    
Definitions.    As used in this Agreement, the following terms shall have the following meanings: 
  
 “Acquisition” means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the
assets of any Person, or any business or division of any Person, (b) the acquisition of in excess of 50% of the stock (or other equity interest) of any Person, or (c) the acquisition of another Person (other than a Company) by a merger or
consolidation or any other combination with such Person. 
  
 “Advantage” means any payment (whether
made voluntarily or involuntarily, by offset of any deposit or other indebtedness or otherwise) received by any Lender in respect of the Debt, if such payment results in that Lender having less than its pro rata share of the outstanding Debt, than
was the case immediately before such payment. 
  
 “Affiliate” means any Person, directly or
indirectly, controlling, controlled by or under common control with a Company and “control” (including the correlative meanings, the terms “controlling”, “controlled by” and “under common control with”) mean
the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Company, whether through the ownership of voting securities, by contract or otherwise. 
  
 “Agent Fee Letter” means the Agent Fee Letter between Borrower and Agent, dated as of the Closing Date, as the same may
from time to time be amended, restated or otherwise modified. 
  
 “Alternate Currency” means Euros,
Canadian dollars, Australian dollars, British pounds, Swedish kronas, yen or any other currency, other than Dollars, agreed to by Agent and each Lender that shall be freely transferable and convertible into Dollars. 
  
 “Alternate Currency Exposure” means, at any time, the aggregate principal Dollar Equivalent amount of all Alternate
Currency Loans outstanding. 
  
 “Alternate Currency Loan” means a Revolving Loan described in
Section 2.02(a) hereof that is denominated in an Alternate Currency on which Borrower shall pay interest at a rate based upon the Alternate Currency Rate. 
  
 “Alternate Currency Rate” means, with respect to an Alternate Currency Loan, for any Interest Period, a rate per annum equal to the quotient obtained (rounded upwards, if necessary, to
the nearest  1/16th of 1%) by dividing (a) the rate of interest, determined by Agent in accordance with its usual
procedures (which determination shall be conclusive absent manifest error) as of approximately 11:00 A.M. (London time) two Business Days prior to the beginning of such Interest Period pertaining to such Alternate Currency Loan, as listed on British
Bankers Association Interest Rate LIBOR 01 or 02 as provided by Reuters (or, if for any reason such rate is unavailable from Reuters, from any other similar company or service that provides rate quotations comparable to those currently provided by
Reuters) as the rate in the London

 

 2 







Table of Contents


 
interbank market for deposits in the relevant Alternate Currency in immediately available funds with a maturity comparable to such Interest Period, provided that, in the event that such rate
quotation is not available for any reason, then the Alternate Currency Rate shall be the average (rounded upward to the nearest  1/16th of 1%) of the per annum rates at which deposits in immediately available funds in the relevant Alternate Currency for the relevant Interest Period and in the amount of the Alternate Currency Loan to be disbursed or to
remain outstanding during such Interest Period, as the case may be, are offered to Agent (or an affiliate of Agent, in Agent’s discretion) by prime banks in any Alternate Currency market reasonably selected by Agent, determined as of 11:00 A.M.
(London time) (or as soon thereafter as practicable), two Business Days prior to the beginning of the relevant Interest Period pertaining to such Alternate Currency Loan hereunder; by (b) 1.00 minus the Reserve Percentage. 

 
 “Applicable Facility Fee Rate” means: 
  
 (a)  for the period from the Closing Date through June 30, 2002 (or such earlier date as shall be determined below upon receipt of the financial
statements for the fiscal quarter ending March 31, 2002), 25 basis points; and 
  
 (b)  commencing with the financial statements for the fiscal quarter ending March 31, 2002, the number of basis points set forth in the following matrix, based upon the result of the computation of the Leverage Ratio, shall
be used to establish the number of basis points that will go into effect on July 1, 2002 and thereafter: 
  
 
	 Leverage Ratio
 
	    	 Applicable Basis Points
 

	 Greater than or equal to 2.50 to 1.00
 	    	 40
 
	 Greater than 2.00 to 1.00 but less than 2.50 to 1.00
 	    	 35
 
	 Greater than or equal to 1.50 to 1.00 but less than 2.00 to 1.00
 	    	 30
 
	 Greater than or equal to 1.00 to 1.00 but less than 1.50 to 1.00
 	    	 25
 
	 Less than 1.00 to 1.00
 	    	 20
 

 
  
 Changes to the Applicable Facility Fee Rate shall be effective on the first day of the
month following the date upon which Agent received, or, if earlier, Agent should have received, pursuant to Section 5.03(a) or (b) hereof, the financial statements of Borrower. Nothing set forth in this definition shall be deemed to modify or waive,
in any respect, the requirements of Section 5.07 hereof, the rights of Agent and the Lenders to charge the Default Rate, or the rights and remedies of Agent and the Lenders pursuant to Articles VII and VIII hereof. 
  
 “Applicable Margin” means: 
  
 (a)  for the period from the Closing Date through June 30, 2002 (or such earlier date as shall be determined below upon receipt of the financial
statements for the fiscal quarter ending
 
 

 3 







Table of Contents


  
 March 31, 2002), (i) 100 basis points for Fixed Rate Loans and Swing Loans, and (ii) 0 basis points for
Base Rate Loans; and 
  
 (b)  commencing with the financial statements for the fiscal quarter ending March
31, 2002, the number of basis points set forth in the following matrix, based upon the result of the computation of the Leverage Ratio, shall be used to establish the number of basis points that will go into effect on July 1, 2002 and thereafter:

  
 
	 Leverage Ratio
 
	    	 Applicable Basis Points for Fixed Rate Loans and Swing Loans
 
	    	 Applicable Basis Points for Base Rate Loans
 

	 Greater than or equal to 2.50 to 1.00
 	    	 160
 	    	 75
 
	 Greater than or equal to 2.00 to 1.00 but less than 2.50 to 1.00
 	    	 140
 	    	 25
 
	 Greater than or equal to 1.50 to 1.00 but less than 2.00 to 1.00
 	    	 120
 	    	 0
 
	 Greater than or equal to 1.00 to 1.00 but less than 1.50 to 1.00
 	    	 100
 	    	 0
 
	 Less than 1.00 to 1.00
 	    	 67.50
 	    	 0
 

 
  
 Changes to the Applicable Margin shall be effective on the first day of the month
following the date upon which Agent received, or, if earlier, Agent should have received, pursuant to Section 5.03(a) or (b) hereof, the financial statements of Borrower. Nothing set forth in this definition shall be deemed to modify or waive, in
any respect, the requirements of Section 5.07 hereof, the rights of Agent and the Lenders to charge the Default Rate, or the rights and remedies of Agent and the Lenders pursuant to Articles VII and VIII hereof. 
  
 “Approved Derivatives Contract” means (a) a Hedge Agreement entered into in the ordinary course of business and not for
speculative purposes, or (b) a commodities contract purchased by a Company in the ordinary course of business, and not for speculative purposes, with respect to aluminum, steel, nickel or any other metal necessary to the manufacturing of goods in
connection with the business of such Company. 
  
 “Assignment Agreement” means an Assignment and
Assumption Agreement in the form of the attached Exhibit G. 
  
 “Base Rate” means a rate per annum
equal to the greater of (a) the Prime Rate or (b) one-half of one percent (1/2%) in excess of the Federal Funds Effective Rate. Any change in the Base Rate shall be effective immediately from and after such change in the Base Rate. 

 
 “Base Rate Loan” means a Loan described in Section 2.02(a) hereof on which Borrower shall pay interest at a
rate based on the Base Rate. 
 

 4 







Table of Contents


  
 “Business Day” means a day of the year on which banks are not
required or authorized to close in Cleveland, Ohio, and, if the applicable Business Day relates to any Eurodollar Loan, on which dealings are carried on in the London interbank eurodollar market, and, if the applicable Business Day relates to any
Alternate Currency Loan, on which commercial banks are open for international business (including the clearing of currency transfer in the relevant Alternate Currency) in the principal financial center of the home country of such Alternate Currency.

  
 “Cash Equivalent” shall mean (a) a security that is the direct obligation of the United States
of America (or any agency thereof), any member state of the European Union or any other sovereign nation acceptable to Agent so long as the full faith of and credit of such nation is pledged in support thereof; (b) time deposits, certificates of
deposit or bankers acceptances issued by any Lender or any other domestic or foreign commercial bank or United States branch of a foreign bank licensed under the laws of the United States or a State thereof having (i) capital and surplus in excess
of $250,000,000 and (ii) a rating of BBB or better by Standard & Poor’s or, with respect to any investment or deposit in a foreign bank in excess of $250,000, a rating of BBB or better by Standard & Poor’s, or if such a rating is
not available, an equivalent from a comparable foreign rating agency (each an “Approved Depository”); (c) commercial paper or securities that at the time of investment therein shall have been assigned at least an A-1 rating (or the
equivalent thereof) by Standard & Poor’s or a P-1 rating (or the equivalent thereof) by Moody’s and which mature within 180 days after the date of acquisition; (d) fully collateralized repurchase obligations entered into with any
Lender or Approved Depository, having a term of not more than 180 days and covering securities of the type describe in subpart (a) above; or (e) investments in money market funds substantially all of the assets of which are securities of the types
described in subparts (a) through (d) above. 
  
 “Change in Control” means (a) the acquisition of,
or, if earlier, the shareholder or director approval of the acquisition of, ownership or voting control, directly or indirectly, beneficially or of record, on or after the Closing Date, by any Person or group (within the meaning of Rule 13d-3 of the
SEC under the Securities Exchange Act of 1934, as then in effect), of shares representing more than 40% of the aggregate ordinary Voting Power represented by the issued and outstanding capital stock of Borrower; or (b) the occupation of a majority
of the seats (other than vacant seats) on the board of directors of Borrower by Persons who were neither (i) nominated by the board of directors of Borrower nor (ii) appointed by directors so nominated. 
  
 “Closing Date” means the effective date of this Agreement. 
  
 “Closing Fee Letter” means the Closing Fee Letter, dated as of the Closing Date, from Borrower to the Lenders. 
  
 “Code” means the Internal Revenue Code of 1986, as amended, together with the rules and regulations promulgated
thereunder. 
  
 “Commitment” means the obligation hereunder of the Lenders to make Loans pursuant to
the Revolving Credit Commitments up to the Total Commitment Amount. 
 

 5 







Table of Contents


  
 “Commitment Percentage” means, for each Lender, the amount,
expressed as a percentage, by which such Lender’s Revolving Credit Commitment bears to the Total Commitment Amount. 
  
 “Commitment Period” means the period from the Closing Date to March 28, 2005, or such earlier date on which the Commitment shall have been terminated pursuant to Article VIII hereof. 
  
 “Company” means Borrower or a Subsidiary. 
  
 “Companies” means Borrower and all Subsidiaries. 
  
 “Compliance Certificate” means a certificate, substantially in the form of the attached Exhibit D. 
  
 “Consideration” means, in connection with an Acquisition, the aggregate consideration paid, including borrowed funds, cash, the issuance of securities or
notes, the assumption or incurring of liabilities (direct or contingent), the payment of consulting fees or fees for a covenant not to compete and any other consideration paid for the such purchase. 
  
 “Consolidated” means the resultant consolidation of the financial statements of Borrower and its Subsidiaries in
accordance with GAAP, including principles of consolidation consistent with those applied in preparation of the consolidated financial statements referred to in Section 4.13 hereof. 
  
 “Consolidated Depreciation and Amortization Charges” means, for any period, the aggregate of all depreciation and amortization charges for fixed assets,
leasehold improvements and general intangibles (specifically including goodwill) of Borrower for such period, as determined on a Consolidated basis and in accordance with GAAP. 
  
 “Consolidated EBIT” means, for any period, on a Consolidated basis, (a) Consolidated Net Earnings for such period plus the aggregate amounts deducted in
determining such Consolidated Net Earnings in respect of (i) income taxes, (ii) Consolidated Interest Expense and (iii) non-recurring non-cash charges (including non-cash charges associated with the write-off of goodwill in accordance with SFAS 142)
and losses, minus (b) non-recurring non-cash gains; provided, that Consolidated EBIT for any period shall include the appropriate financial items (other than assumed operating synergies) for any Person or business unit that has been acquired by a
Company for any portion of such period prior to the date of such Acquisition and exclude the appropriate financial items (other than assumed operating synergies) for any Person or business unit that has been disposed of by a Company, for the portion
of such period prior to the date of such disposition. 
  
 “Consolidated EBITDA” means, for any
period, (a) Consolidated EBIT, plus (b) Consolidated Depreciation and Amortization Charges; provided, that Consolidated EBITDA for any period shall (i) include the appropriate financial items (other than assumed operating synergies) for any Person
or business unit that has been acquired by a Company for any portion of such period prior to the date of such Acquisition, and (ii) exclude the appropriate financial
 
 

 6 







Table of Contents


 
(other than assumed operating synergies) items for any Person or business unit that has been disposed of by a Company, for the portion of such period prior to the date of such disposition.

  
 “Consolidated Funded Indebtedness” means, with respect to Borrower as determined on a
Consolidated basis, without duplication, (a) all Indebtedness for borrowed money and capitalized leases, including, but not limited to, current, long-term and Subordinated Indebtedness, if any, all Synthetic Lease Indebtedness, and all obligations
under conditional sales or other title retention agreements (other than a true consignment), (b) all Permitted Third-Party Guaranties, and (c) all Indebtedness of a Foreign Subsidiary incurred pursuant to subpart (c) of the definition of Permitted
Foreign Subsidiary Loans and Investments that is guaranteed by Borrower or any Guarantor of Payment, or for which Borrower or any Guarantor of Payment is otherwise liable, whether directly or indirectly. 
  
 “Consolidated Interest Expense” means, for any period, interest expense of Borrower for such period, as determined on a
Consolidated basis and in accordance with GAAP. 
  
 “Consolidated Net Earnings” means, for any
period, the net income (loss) of Borrower for such period, as determined on a Consolidated basis and in accordance with GAAP. 
  
 “Consolidated Net Worth” means, at any date, the stockholders’ equity of Borrower, determined on a Consolidated basis and in accordance with GAAP. 
  
 “Contribution Agreement” means the Contribution Agreement, in the form of the attached Exhibit I, entered into by Borrower and each Guarantor of
Payment, as the same may from time to time be amended, restated, supplemented, or otherwise modified. 
  
 “Controlled Group” means a Company and each Person required to be aggregated with a Company under Code Sections 414(b), (c), (m) or (o). 
  
 “Credit Event” means the making by any Lender of a Loan, the conversion by any Lender of a Fixed Rate Loan or Base Rate Loan, or the continuation by any
Lender of a Fixed Rate Loan. 
  
 “Debt” means, collectively, all Indebtedness and other obligations
incurred by Borrower to the Lenders pursuant to this Agreement and includes the principal of and interest on all Notes and each extension, renewal or refinancing thereof in whole or in part, the facility fees, other fees and any prepayment fees and
other amounts payable hereunder, and all Related Expenses. 
  
 “Debt Placement” means an
underwritten public offering, Rule 144A offering, private placement or other debt offering with one or more institutional investors, provided that Debt Placement shall not include a committed senior revolving credit facility provided by a commercial
bank or banks. 
  
 “Default” means an event or condition that constitutes, or with the lapse of any
applicable grace period or the giving of notice or both would constitute, an Event of Default and that has not been waived by the Required Lenders (or all of the Lenders, as the case may be) in writing. 
 

 7 







Table of Contents


  
 “Default Rate” means (a) with respect to any Loan, a rate per
annum equal to 2% in excess of the rate otherwise applicable thereto, and (b) with respect to any other amount, a rate per annum equal to 2% in excess of the Derived Base Rate from time to time in effect. 
  
 “Derived Base Rate” means a rate per annum equal to the sum of the Applicable Margin (from time to time in effect) plus
the Base Rate. 
  
 “Derived Fixed Rate” means, (a) with respect to a Eurodollar Loan, a rate per
annum equal to the sum of the Applicable Margin (from time to time in effect) plus the Eurodollar Rate, or (b) with respect to an Alternate Currency Loan, a rate per annum equal to the sum of the Applicable Margin from time to time in effect plus
the Alternate Currency Rate applicable to the relevant Alternate Currency. 
  
 “Derived Swing Loan
Rate” means a rate per annum equal to (a) Agent’s costs of funds as quoted to Borrower by Agent and agreed to by Borrower, plus (b) the Applicable Margin (from time to time in effect). 
  
 “Dollar” or $ means lawful money of the United States of America. 
  
 “Dollar Equivalent” means, (a) with respect to an Alternate Currency Loan, the Dollar equivalent of the amount of such
Alternate Currency Loan, determined by Agent on the basis of its spot rate at approximately 11:00 A.M. London time on the date two Business Days before the date of such Alternate Currency Loan, for the purchase of the relevant Alternate Currency
with Dollars for delivery on the date of such Alternate Currency Loan, and (b) with respect to any other amount, the Dollar equivalent of such amount, determined by Agent on the basis of its spot rate at approximately 11:00 A.M. London time on the
date for which the Dollar equivalent amount of such amount is being determined, for the purchase of the relevant Alternate Currency with Dollars for delivery on such date; provided, however, that, in calculating the Dollar Equivalent for purposes of
determining (i) Borrower’s obligation to prepay Loans pursuant to Section 2.12 hereof, or (ii) Borrower’s ability to request additional Loans pursuant to the Commitment, Agent may, in its discretion, on any Business Day (prior to payment
in full of the Debt) selected by Agent, calculate the Dollar Equivalent of each such Loan. Agent shall notify Borrower of the Dollar Equivalent of such Alternate Currency Loan, or any other amount, at the time that Dollar Equivalent is determined.

  
 “Domestic Subsidiary” means a Subsidiary that is not a Foreign Subsidiary. 

 
 “Environmental Laws” means all provisions of law, statutes, ordinances, rules, regulations, permits, licenses,
judgments, writs, injunctions, decrees, orders, awards and standards promulgated by the government of the United States of America or any other applicable country or sovereignty or by any state or municipality thereof or by any court, agency,
instrumentality, regulatory authority or commission of any of the foregoing concerning health, safety and protection of, or regulation of the discharge of substances into, the environment. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated pursuant thereto.

 

 8 







Table of Contents


  
 “ERISA Event” means (a) the existence of a condition or event
with respect to an ERISA Plan that presents a risk of the imposition of an excise tax or any other liability on a Company or of the imposition of a Lien on the assets of a Company; (b) the engagement by a Controlled Group member in a non-exempt
“prohibited transaction” (as defined under ERISA Section 406 or Code Section 4975) or a breach of a fiduciary duty under ERISA that could result in liability to a Company; (c) the application by a Controlled Group member for a waiver from
the minimum funding requirements of Code Section 412 or ERISA Section 302 or a Controlled Group member is required to provide security under Code Section 401(a)(29) or ERISA Section 307; (d) the occurrence of a Reportable Event with respect to any
Pension Plan as to which notice is required to be provided to the PBGC; (e) the withdrawal by a Controlled Group member from a Multiemployer Plan in a “complete withdrawal” or a “partial withdrawal” (as such terms are defined in
ERISA Sections 4203 and 4205, respectively); (f) the involvement of, or occurrence or existence of any event or condition that makes likely the involvement of, a Multiemployer Plan in any reorganization under ERISA Section 4241; (g) the failure of
an ERISA Plan (and any related trust) that is intended to be qualified under Code Sections 401 and 501 to be so qualified or the failure of any “cash or deferred arrangement” under any such ERISA Plan to meet the requirements of Code
Section 401(k); (h) the taking by the PBGC of any steps to terminate a Pension Plan or appoint a trustee to administer a Pension Plan, or the taking by a Controlled Group member of any steps to terminate a Pension Plan; (i) the failure by a
Controlled Group member or an ERISA Plan to satisfy any requirements of law applicable to an ERISA Plan; (j) the commencement, existence or threatening of a claim, action, suit, audit or investigation with respect to an ERISA Plan, other than a
routine claim for benefits; or (k) any occurrence by or any expectation of the incurrence by a Controlled Group member of any liability for post-retirement benefits under any Welfare Plan, other than as required by ERISA Section 601,
et.seq. or Code Section 4980B. 
  
 “ERISA Plan” means an “employee benefit
plan” (within the meaning of ERISA Section 3(3)) that a Controlled Group member at any time sponsors, maintains, contributes to, has liability with respect to or has an obligation to contribute to such plan. 
  
 “Eurocurrency Liabilities” has the meaning assigned to that term in Regulation D of the Board of Governors of the Federal
Reserve System, as in effect from time to time. 
  
 “Eurodollar Loan” means a Revolving Loan
described in Section 2.02(a) hereof that is denominated in Dollars on which Borrower shall pay interest at a rate based upon the Eurodollar Rate. 
  
 “Eurodollar Rate” means, with respect to a Eurodollar Loan, for any Interest Period, a rate per annum equal to the quotient obtained (rounded upwards, if necessary, to the nearest
 1/16th of 1%) by dividing (a) the per annum rate of interest, determined by Agent in accordance with its usual
procedures (which determination shall be conclusive absent manifest error) as of approximately 11:00 A.M. (London time) two Business Days prior to the beginning of such Interest Period pertaining to such Eurodollar Loan, as provided by Reuters (or,
if for any reason such rate is unavailable from Reuters, from any other similar company or service that provides rate quotations comparable to those currently provided by Reuters) as the rate in the London interbank market for Dollar deposits in
immediately available funds with a maturity comparable to such Interest Period, provided that, in the event that such rate quotation is not available for any
 
 

 9 







Table of Contents


 
reason, then the Eurodollar Rate shall be the average (rounded upward to the nearest  1/16th of 1%) of the per annum rates at which deposits in immediately available funds in Dollars for the relevant Interest Period and in the amount of the Eurodollar Loan to be disbursed or to remain
outstanding during such Interest Period, as the case may be, are offered to Agent (or an affiliate of Agent, in Agent’s discretion) by prime banks in any Eurodollar market reasonably selected by Agent, determined as of 11:00 A.M. (London time)
(or as soon thereafter as practicable), two Business Days prior to the beginning of the relevant Interest Period pertaining to such Eurodollar Loan hereunder; by (b) 1.00 minus the Reserve Percentage. 
  
 “Event of Default” means an event or condition that constitutes an event of default as defined in Article VII hereof.

  
 “Excluded Agreement” means any contract or agreement entered into in connection with
Indebtedness permitted to be incurred pursuant to Section 5.08(c), Section 5.08(h) or Section 5.08(i), but only to the extent that any such contract or agreement entered in connection with Indebtedness permitted pursuant to Section 5.08(i) is
entered into with a Lender. 
  
 “Federal Funds Effective Rate” means, for any day, the rate per
annum (rounded upward to the nearest one one-hundredth of one percent (1/100 of 1%)) announced by the Federal Reserve Bank of New York (or any successor) on such day as being the weighted average of the rates on overnight federal funds transactions
arranged by federal funds brokers on the previous trading day, as computed and announced by such Federal Reserve Bank (or any successor) in substantially the same manner as such Federal Reserve Bank computes and announces the weighted average it
refers to as the “Federal Funds Effective Rate” as of the Closing Date. 
  
 “Financial
Officer” means any of the following officers: chief executive officer, president, chief financial officer or treasurer. Unless otherwise qualified, all references to a Financial Officer in this Agreement shall refer to a Financial Officer
of Borrower. 
  
 “Fixed Rate Loan” means a Eurodollar Loan or an Alternate Currency Loan.

  
 “Foreign Subsidiary” means a Subsidiary that is organized outside of the United States.

  
 “GAAP” means generally accepted accounting principles as in effect from time to time, which
shall include the official interpretations thereof by the Financial Accounting Standards Board, applied on a basis consistent with the past accounting practices and procedures of Borrower. 
  
 “Guarantor” means a Person that pledges its credit or property in any manner for the payment or other performance of the indebtedness, contract or other
obligation of another and includes (without limitation) any guarantor (whether of payment or of collection), surety, co-maker, endorser or Person that agrees conditionally or otherwise to make any purchase, loan or investment in order thereby to
enable another to prevent or correct a default of any kind. 
  
 “Guarantor of Payment” means each of
the Companies set forth on Schedule 2 hereof, that are executing and delivering a Guaranty of Payment, or any other Person that shall deliver a Guaranty of Payment to Agent after the Closing Date in connection with this Agreement.

 

 10 







Table of Contents


  
 “Guaranty of Payment” means the Guaranty of Payment, in the form
of the attached Exhibit E, entered into by each Guarantor of Payment, and each other Guaranty of Payment executed and delivered on or after the Closing Date by any Person in connection with this Agreement, as any of the foregoing may from
time to time be amended, restated, supplemented, or otherwise modified. 
  
 “Hedge Agreement” means
any (a) hedge agreement, interest rate swap, cap, collar or floor agreement, or other interest rate management device entered into by a Company with any Person in connection with any Indebtedness of such Company, or (b) currency swap agreement,
forward currency purchase agreement, foreign currency option contract or similar arrangement or agreement designed or used to protect against fluctuations in currency exchange rates entered into by a Company. 
  
 “Indebtedness” means, for any Company (excluding in all cases trade payables payable in the ordinary course of business
by such Company), without duplication, (a) all obligations to repay borrowed money, direct or indirect, incurred, assumed, or guaranteed, (b) all obligations for the deferred purchase price of capital assets, (c) all obligations under conditional
sales or other title retention agreements (other than a true consignment), (d) all obligations (contingent or otherwise) under any letter of credit, banker’s acceptance or Hedge Agreement, (e) all Synthetic Lease Indebtedness, (f) all lease
obligations that have been or should be capitalized on the books of such Company in accordance with GAAP, (g) all obligations (other than customary reimbursement obligations for out-of-pocket expenses and legal fees and indemnification obligations
that have not been fixed) of such Company with respect to asset securitization financing programs, (h) all obligations to advance funds to, or to purchase assets, property or services from, any other Person in order to maintain the financial
condition of such Person, (i) any other transaction (including forward sale or purchase agreements) having the commercial effect of a borrowing of money entered into by such Company to finance its operations or capital requirements, and (j) all
guarantees of any of the foregoing Indebtedness by any Company. 
  
 “Insurance Subsidiary” means
Global Risk Insurance Company, a Vermont corporation, together with its successors and assigns. 
  
 “Interest
Adjustment Date” means the last day of each Interest Period. 
  
 “Interest Coverage Ratio”
means, as of any date, the ratio of (a) Consolidated EBIT to (b) Consolidated Interest Expense, for the four fiscal quarters of Borrower ended on or immediately prior to such date. 
  
 “Interest Period” means, with respect to a Fixed Rate Loan, a period of one, two, three or six months, as selected by Borrower in accordance with Section
2.03 hereof, commencing on the applicable date of borrowing or conversion of such Fixed Rate Loan and on each Interest Adjustment Date with respect thereto; provided, however, that if any such period would be affected by a reduction in the
Commitment as provided in Section 2.10 hereof, prepayment or conversion rights or obligations as provided in Section 2.03(b) or Article III hereof, or maturity of Fixed Rate Loans as provided in Section 2.02 hereof, Borrower shall not select a
period that extends beyond the date of such reduction, prepayment, conversion or maturity; provided, further, that, if (a) Borrower fails to select a new Interest Period with respect to an outstanding
 
 

 11 







Table of Contents


  
 Eurodollar Loan at least three Business Days prior to the Interest Adjustment Date applicable to such
Eurodollar Loan, Borrower shall be deemed to have converted such Eurodollar Loan to a Base Rate Loan at the end of the then current Interest Period, or (b) Borrower fails to select a new Interest Period with respect to an outstanding Alternate
Currency Loan at least three Business Days prior to the Interest Adjustment Date applicable to such Alternative Currency Loan, such Alternate Currency Loan shall be repaid on the last day of the applicable Interest Period. 
  
 “Leverage Ratio” means, as of any date, the ratio of (a) Consolidated Funded Indebtedness as of such date to (b)
Consolidated EBITDA for the four fiscal quarters of Borrower ended on or immediately prior to such date. 
  
 “Lien” means any mortgage, security interest, lien (statutory or other), charge, encumbrance on, pledge or deposit of, or conditional sale, leasing, sale with a right of redemption or other title retention agreement
and any capitalized lease with respect to any property (real or personal) or asset. 
  
 “Loan” means
a Revolving Loan or a Swing Loan. 
  
 “Loan Documents” means, collectively, this Agreement, each
Note, each Guaranty of Payment, each Pledge Agreement, the Agent Fee Letter, the Closing Fee Letter and any other documents relating to any of the foregoing, as any of the foregoing may from time to time be amended, restated or otherwise modified or
replaced. 
  
 “Material Adverse Effect” means (a) a material adverse effect on the business,
operations, property, condition (financial or otherwise) or prospects of Borrower and its Subsidiaries taken as a whole, or (b) a material adverse effect on the ability of Borrower or any other Company to perform or comply with any of the material
terms and conditions of any material Loan Document. 
  
 “Material Indebtedness Agreement” means any
debt instrument, lease (capital, operating or otherwise), guaranty, contract, commitment, agreement or other arrangement evidencing any Indebtedness of any Company in excess of the aggregate amount of $10,000,000. 
  
 “Moody’s” means Moody’s Investors Service, Inc., or any successor to such company. 
  
 “Multiemployer Plan” means a Pension Plan that is subject to the requirements of Subtitle E of Title IV of ERISA.

  
 “Note” means any Revolving Credit Note, any Swing Line Note or any other note delivered pursuant
to this Agreement. 
  
 “Notice of Loan” means a Notice of Loan in the form of the attached Exhibit
C. 
  
 “Obligor” means (a) a Person whose credit or any of whose property is pledged to the payment
of the Debt and includes, without limitation, any Guarantor, and (b) any signatory to a Related Writing. 
 

 12 







Table of Contents


  
 “Organizational Documents” means, with respect to any Person
(other than an individual), such Person’s Articles (Certificate) of Incorporation, or equivalent formation documents, and Regulations (Bylaws), or equivalent governing documents, and any amendments to any of the foregoing. 

 
 “PBGC” means the Pension Benefit Guaranty Corporation, or its successor. 
  
 “Pension Plan” means an ERISA Plan that is a “pension plan” (within the meaning of ERISA Section 3(2)).

  
 “Permitted Foreign Subsidiary Loans and Investments” means (a) any investment by a Foreign
Subsidiary in, or loan from a Foreign Subsidiary to, another Company, (b) any investment by Borrower or a Guarantor of Payment in a Foreign Subsidiary made in the ordinary course of business, (c) any loan from Borrower or a Guarantor of Payment to a
Foreign Subsidiary made in the ordinary course of business, and (d) any Indebtedness of a Foreign Subsidiary owing to another Person (other than a Company) incurred in the ordinary course of business, so long as the aggregate amount of all such
loans, investments and Indebtedness (including the loans, investments and Indebtedness outstanding on the Closing Date) for all Companies pursuant to subparts (b), (c) and (d) above does not exceed, at any time, an amount equal to 25% of
Consolidated Net Worth, based upon Borrower’s financial statements for the most recently completed fiscal quarter. 
  
 “Permitted Insurance Subsidiary Loans and Investments” means (a) any investment by the Insurance Subsidiary in, or loan from the Insurance Subsidiary to, Borrower or a Guarantor of Payment, (b) equity investments by
Borrower in the Insurance Subsidiary in an aggregate amount not to exceed $1,000,000, (c) any investment by Borrower or a Guarantor of Payment (in addition to the investments permitted pursuant to the foregoing subpart (b)) in, or loans by Borrower
or a Guarantor of Payment to, the Insurance Subsidiary made in the ordinary course of business, so long as the aggregate amount of all such loans and investments does not exceed $20,000,000 at any time, and (d) investments by the Insurance
Subsidiary in debt or equity investments in the ordinary course of the Insurance Subsidiary’s business. 
  
 “Permitted Third Party Investments” means (a) any Permitted Third-Party Guaranty and (b) any investment of Borrower or a Guarantor of Payment in the stock (or other debt or equity instruments) of a Person (other than
a Company), so long as the aggregate amount of all such investments, together with the amount of all Permitted Third-Party Guaranties, of all Companies does not exceed $50,000,000 at any time. 
  

“Permitted Third-Party Guaranty” means any guaranty by Borrower or a Guarantor of Payment of Indebtedness of a Person other than a Company, so long as
the aggregate amount of all such guaranties does not exceed $10,000,000 at any time. 
  
 “Person”
means any individual, sole proprietorship, partnership, joint venture, unincorporated organization, corporation, limited liability company, institution, trust, estate, government or other agency or political subdivision thereof or any other entity.

  
 “Pledge Agreement” means each Pledge Agreement, in the form of the attached Exhibit F,
executed and delivered by any Company to Agent, for the benefit of the Lenders, on
 
 

 13 







Table of Contents


 
or after the Closing Date, as any of the foregoing may from time to time be amended, restated or otherwise modified. 
  
 “Prime Rate” means the interest rate established from time to time by Agent as Agent’s prime rate, whether or not such rate shall be publicly
announced; the Prime Rate may not be the lowest interest rate charged by Agent for commercial or other extensions of credit. Each change in the Prime Rate shall be effective immediately from and after such change. 
  
 “Related Expenses” means any and all reasonable costs, liabilities and expenses (including, without limitation, losses,
damages, penalties, claims, actions, reasonable attorneys’ fees, legal expenses, judgments, suits and disbursements) (a) incurred by Agent or imposed upon or asserted against Agent or any Lender, in any attempt by Agent and the Lenders to (i)
obtain, preserve, perfect or enforce any security interest evidenced by any Loan Document; (ii) obtain payment, performance or observance of any and all of the Debt; or (iii) maintain, insure, audit, collect, preserve, repossess or dispose of any
collateral securing the Debt, including, without limitation, costs and expenses for appraisals, assessments and audits of any Company or any such collateral; or (b) incidental or related to (a) above, including, without limitation, interest
thereupon from the date incurred, imposed or asserted until paid at the Default Rate. 
  
 “Related
Writing” means each Loan Document and any other assignment, mortgage, security agreement, guaranty agreement, subordination agreement, financial statement, audit report or other writing furnished by Borrower, any Subsidiary or any Obligor,
or any of their respective officers, to Agent or the Lenders pursuant to or otherwise in connection with this Agreement. 
  
 “Reportable Event” means a reportable event as that term is defined in Title IV of ERISA, except actions of general applicability by the Secretary of Labor under Section 110 of such Act. 
  
 “Request for Extension” means a notice, substantially in the form of the attached Exhibit H. 
  
 “Required Lenders” means the holders of at least 51% of the Total Commitment Amount, or, if there is any borrowing
hereunder, the holders of at least 51% of the aggregate principal amount outstanding under all Notes other than the Swing Line Note. 
  
 “Reserve Percentage” means, with respect any Fixed Rate Loan for any day, the percentage (expressed as a decimal) that is in effect on such day, as prescribed by the Board of Governors of the Federal Reserve
System (or any successor) for determining the maximum reserve requirement (including, without limitation, all basic, supplemental, marginal and other reserves and taking into account any transitional adjustments or other scheduled changes in reserve
requirements) for a member bank of the Federal Reserve System in Cleveland, Ohio, in respect of Eurocurrency Liabilities. The Eurodollar Rate and the Alternate Currency Rate shall be adjusted automatically on and as of the effective date of any
change in the Reserve Percentage. 
  
 “Revolving Credit Commitment” means the obligation hereunder,
during the Commitment Period, of (a) each Lender to participate in the making of Revolving Loans up to
 
 

 14 







Table of Contents


 
the aggregate amount set forth opposite such Lender’s name under the column headed “Revolving Credit Commitment Amount” as set forth on Schedule 1 hereof (or such other
amount as shall be determined pursuant to Section 2.10 or 10.10 hereof) and (b) Agent to make Swing Loans pursuant to the Swing Line Commitment. 
  
 “Revolving Credit Exposure” means, at any time, the sum of (a) the aggregate principal Dollar or Dollar Equivalent amount of all Revolving Loans outstanding and (b) the Swing Line
Exposure. 
  
 “Revolving Credit Note” means a Revolving Credit Note, in the form of the attached
Exhibit A, executed and delivered pursuant to Section 2.05(a) hereof. 
  
 “Revolving Loan”
means a loan granted to Borrower by the Lenders in accordance with Section 2.02(a) hereof. 
  
 “SEC”
means the United States Securities and Exchange Commission, or any governmental body or agency succeeding to any of its principal functions. 
  
 “Share Repurchase” means the purchase, repurchase, redemption or other acquisition by Borrower from any Person of any capital stock or other equity interest of Borrower. 

 
 “Standard & Poor’s” means Standard & Poor’s Ratings Group, a division of McGraw-Hill, Inc.,
or any successor to such company. 
  
 “Subordinated”, as applied to Indebtedness, means that the
Indebtedness has been subordinated (by written terms or written agreement being, in either case, in form and substance satisfactory to Agent and the Required Lenders) in favor of the prior payment in full of the Debt. 
  
 “Subsidiary” of Borrower or any of its Subsidiaries means (a) a corporation more than 50% of the Voting Power of which is
owned, directly or indirectly, by Borrower or by one or more other subsidiaries of Borrower or by Borrower and one or more subsidiaries of Borrower, (b) a partnership or limited liability company of which Borrower, one or more other subsidiaries of
Borrower or Borrower and one or more subsidiaries of Borrower, directly or indirectly, is a general partner or managing member, as the case may be, or otherwise has the power to direct the policies, management and affairs thereof, or (c) any other
Person (other than a corporation) in which Borrower, one or more other subsidiaries of Borrower or Borrower and one or more subsidiaries of Borrower, directly or indirectly, has at least a majority interest in the Voting Power or the power to direct
the policies, management and affairs thereof. 
  
 “Swing Line” means the credit facility established
by Agent for Borrower in accordance Section 2.02(b) hereof. 
  
 “Swing Line Commitment” means the
commitment of Agent to make Swing Loans to Borrower up to the maximum aggregate amount at any time outstanding of $25,000,000 in accordance with the terms and conditions of the Swing Line. 
  
 “Swing Line Exposure” means, at any time, the aggregate principal amount of all outstanding Swing Loans. 
 

 15 







Table of Contents


  
 “Swing Line Note” means the Swing Line Note, in the form of the
attached Exhibit B, executed and delivered pursuant to Section 2.02(b) hereof. 
  
 “Swing
Loan” means a loan granted to Borrower by Agent under the Swing Line. 
  
 “Swing Loan Maturity
Date” means, with respect to any Swing Loan, the earlier of (a) the date agreed to between Agent and Borrower, but in no event shall such date be in excess of 29 days after the date such Swing Loan is made, or (b) the last day of the
Commitment Period. 
  
 “Synthetic Lease” means any lease entered into by any Company that is treated
as a lease for accounting purposes but that is intended by the parties to be treated as a financing transaction for income tax, property law and/or bankruptcy purposes, and in respect of which transaction any Synthetic Lease Indebtedness is issued
or incurred. 
  
 “Synthetic Lease Indebtedness” means the aggregate principal amount of (and
capitalized interest on) all indebtedness incurred or issued in connection with any Synthetic Lease that is secured, supported or serviced, directly or indirectly, by any payments made by any Company. 
  
 “Tax” means any present or future tax, levy, deduction, charge or withholding and all liabilities with respect to any of
the foregoing (other than taxes imposed on or measured by the income of any Lender, or franchise taxes imposed on such Lender, by any jurisdiction in which such Lender is organized or in which such Lender is resident or doing business), under the
laws of the United States of America or any foreign jurisdiction (or any state or political subdivision thereof). 
  
 “Total Commitment Amount” means the principal amount of $325,000,000 (or its Dollar Equivalent in Alternate Currency), or such lesser amount as shall be determined pursuant to Section 2.10 hereof; provided, however,
that, for the purposes of determining the Total Commitment Amount, Agent may, in its discretion, calculate the Dollar Equivalent of any Alternate Currency Loan on any Business Day selected by Agent. 
  
 “Voting Power” means, with respect to any Person, the exclusive ability to control, through the ownership of shares of
capital stock, partnership interests, membership interests or otherwise, the election of members of the board of directors or other similar governing body of such Person, and the holding of a designated percentage of Voting Power of a Person means
the ownership of shares of capital stock, partnership interests, membership interests or other interests of such Person sufficient to control exclusively the election of that percentage of the members of the board of directors or similar governing
body of such Person. 
  
 “Welfare Plan” means an ERISA Plan that is a “welfare plan”
within the meaning of ERISA Section 3(l). 
  
 “Wholly-Owned Subsidiary” means, with respect to any
Person, any corporation, limited liability company or other entity, all of the securities or other ownership interest of which having ordinary voting power to elect a majority of the board of directors, or other persons performing similar functions,
are at the time directly or indirectly owned by such Person. 
 

 16 







Table of Contents


  
 Section 1.02    
Accounting Terms.    Any accounting term not specifically defined in this Article I shall have the meaning ascribed thereto by GAAP. 
  
 
Section 1.03     
Terms Generally.    The foregoing definitions shall be applicable to the singular and plurals of the foregoing defined terms. 
  
 ARTICLE II. 
  
 
AMOUNT AND TERMS OF CREDIT 
  
 Section 2.01    
Commitment. 
  
 (a)  Subject to the terms and conditions of this Agreement, each
Lender shall participate, to the extent hereinafter provided, in making Loans to Borrower in such aggregate amount as Borrower shall request pursuant to the Commitment; provided, however, that in no event shall the Dollar Equivalent of the aggregate
principal amount of all Loans outstanding under this Agreement be in excess of the Total Commitment Amount. 
  
 (b)  Each Lender, for itself and not one for any other, agrees to participate in Loans made hereunder during the Commitment Period on such basis that (i) immediately after the completion of any borrowing by Borrower, the
Dollar Equivalent of the aggregate outstanding principal amount on the Notes (other than the Swing Line Note) issued to such Lender shall not be in excess of such Lender’s Revolving Credit Commitment, and (ii) such Dollar Equivalent of the
aggregate principal amount outstanding on the Notes (other than the Swing Line Note) issued to such Lender shall represent that percentage of the Dollar Equivalent of the aggregate outstanding principal amount on all Notes (including the Notes held
by such Lender) that is such Lender’s Commitment Percentage. 
  
 (c)  Each borrowing (other than Swing
Loans) from the Lenders hereunder shall be made pro rata according to the respective Commitment Percentages of the Lenders. 
  
 Section 2.02    
Loans. 
  
 (a)  Revolving Loans.    Subject to the
terms and conditions of this Agreement, during the Commitment Period, the Lenders shall make a Revolving Loan or Revolving Loans to Borrower in such amount or amounts as Borrower may from time to time request, but not exceeding in aggregate
principal amount at any time outstanding hereunder the Total Commitment Amount, when such Revolving Loans are combined with the Swing Line Exposure. Borrower shall have the option, subject to the terms and conditions set forth herein, to borrow
Revolving Loans, maturing on the last day of the Commitment Period, by means of any combination of Base Rate Loans, Eurodollar Loans or Alternate Currency Loans. With respect to each Alternate Currency Loan, subject to the other provisions of this
Agreement, Borrower shall have the right to receive all of the proceeds of such Alternate Currency Loan in an Alternate Currency. Each Alternate Currency Loan shall be made in a single Alternate Currency. Subject to the provisions of this Agreement,
Borrower shall be entitled under this Section 2.02(a) to borrow funds, repay the same in whole or in part and re-borrow hereunder at any time and from time to time during the Commitment Period. 
 

 17 







Table of Contents


  
 (b) Swing Loans. 
  

(i)  Generally.    Subject to the terms and conditions of this Agreement, during the Commitment Period, Agent
shall make a Swing Loan or Swing Loans to Borrower in such amount or amounts as Borrower may from time to time request; provided that Borrower shall not request any Swing Loan hereunder if, after giving effect thereto, (x) the Revolving Credit
Exposure would exceed the Total Commitment Amount, or (y) the Swing Line Exposure would exceed the Swing Line Commitment. Each Swing Loan shall be due and payable on the Swing Loan Maturity Date applicable thereto. Borrower shall not request that
more than two Swing Loans be outstanding at any time. Each Swing Loan shall be made in Dollars. Subject to the provisions of this Agreement, Borrower shall be entitled under this Section 2.02(b) to borrow funds, repay the same in whole or in part
and reborrow hereunder at any time and from time to time during the Commitment Period. 
  
 (ii)  Refunding of Swing Loans.    If Agent so elects, by giving notice to Borrower and the Lenders, Borrower agrees that Agent shall have the right, in its sole discretion, to require that any
Swing Loan be refinanced as a Revolving Loan. Such Revolving Loan shall be a Base Rate Loan unless and until converted by Borrower to a Eurodollar Loan pursuant to Section 2.03 hereof. Upon receipt of such notice by Borrower, Borrower shall be
deemed, on such day, to have requested a Revolving Loan in the principal amount of the Swing Loan in accordance with Section 2.03 hereof. Each Lender agrees to make a Revolving Loan on the date of such notice, subject to no conditions precedent
whatsoever. Each Lender acknowledges and agrees that such Lender’s obligation to make a Revolving Loan pursuant to Section 2.02(a) when required by this Section 2.02(b) shall be absolute and unconditional and shall not be affected by any
circumstance whatsoever, including, without limitation, the occurrence and continuance of a Default or Event of Default, and that its payment to Agent, for the account of Agent, of the proceeds of such Revolving Loan shall be made without any
offset, abatement, recoupment, counterclaim, withholding or reduction whatsoever and whether or not such Lender’s Commitment Percentage shall have been reduced or terminated. Borrower irrevocably authorizes and instructs Agent to apply the
proceeds of any borrowing pursuant to this paragraph to repay in full such Swing Loan. 
  
 (iii)  Participations.    If, for any reason, Agent is unable to or, in the opinion of Agent, it is impracticable to, convert any Swing Loan to a Revolving Loan pursuant to the preceding
paragraph, then on any day that a Swing Loan is outstanding (whether before or after the maturity thereof), Agent shall have the right to request that each Lender purchase a participation in such Swing Loan, and Agent shall promptly notify each
Lender thereof (by facsimile or telephone, confirmed in writing). Upon such notice, but without further action, Agent hereby agrees to grant to each Lender, and each Lender hereby agrees to acquire from Agent, an undivided participation interest in
such Swing Loan in an amount equal to such Lender’s Commitment Percentage of the aggregate principal amount of such Swing Loan. In consideration and in furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees, upon
receipt of notice as provided above, to pay to Agent, for its sole account, such Lender’s ratable share of such Swing Loan (determined in accordance with such Lender’s Commitment
 
 

 18 







Table of Contents



	 	
Percentage). Each Lender acknowledges and agrees that its obligation to acquire participations in Swing Loans pursuant to this Section 2.02(b) shall be absolute and unconditional and shall not be
affected by any circumstance whatsoever, including, without limitation, the occurrence and continuance of a Default or an Event of Default, and that each such payment shall be made without any offset, abatement, recoupment, counterclaim, withholding
or reduction whatsoever and whether or not such Lender’s Revolving Credit Commitment shall have been reduced or terminated. Each Lender shall comply with its obligation under this Section 2.02(b) by wire transfer of immediately available funds,
in the same manner as provided in Section 2.03 hereof with respect to Revolving Loans to be made by such Lender. Notwithstanding the foregoing, no Lender shall be obligated to purchase a participation in a Swing Loan pursuant to this subsection if
such Swing Loan was made by Agent after Agent has received written notice of the existence of a Default or Event of Default pursuant to Section 9.06 hereof. 
 

  
 Section 2.03    
Notice of Credit Event; Funding of Loans Etc. 
  
 (a)  Notice of
Loan.    Agent shall have received a Notice of Loan prior to any Credit Event by (i) 11:30 A.M. (Cleveland, Ohio time) on the proposed date of borrowing or conversion of any Base Rate Loan, (ii) 11:30 A.M. (Cleveland, Ohio
time) three Business Days prior to the proposed date of borrowing, conversion or continuation of any Eurodollar Loan, (iii) 11:00 A.M. (Cleveland, Ohio time) three Business Days prior to the proposed date of borrowing of any Alternate Currency Loan,
and (iv) 11:00 A.M. (Cleveland, Ohio time) on the proposed date of borrowing of any Swing Loan. 
  
 (b)  Conversion of Loans.    At the request of Borrower to Agent, subject to the notice and other provisions of Section 2.03(a) hereof, the Lenders shall convert Base Rate Loans to Eurodollar
Loans at any time and shall convert Eurodollar Loans to Base Rate Loans on any Interest Adjustment Date. No Alternate Currency Loan may be converted to a Base Rate Loan or a Eurodollar Loan. 
  
 (c)  Minimum Amount.    Borrower’s request for (i) a Base Rate Loan shall be in an amount of not less than $1,000,000, increased
by increments of $500,000, (ii) a Fixed Rate Loan shall be in an amount (or, with respect to an Alternate Currency Loan, the Dollar Equivalent) of not less than $5,000,000, increased by increments of $1,000,000 (or, with respect to an Alternate
Currency Loan, such approximately comparable amount as shall result in a rounded number of the applicable Alternate Currency), and (iii) a Swing Loan shall be in an amount not less than $1,000,000. 
  
 (d)  Interest Periods.    At no time shall Borrower request that Fixed Rate Loans be outstanding for
more than ten different Interest Periods at any time, and, if Base Rate Loans are outstanding, then Fixed Rate Loans shall be limited to nine different Interest Periods at any time. 
  
 (e)  Indemnification.    Each request for a Fixed Rate Loan shall be irrevocable and binding on Borrower and Borrower shall indemnify
Agent and the Lenders against any loss or expense incurred by Agent or the Lenders as a result of any failure by Borrower to consummate such transaction including, without limitation, any loss (including loss of anticipated profits) or expense
incurred by reason of liquidation or re-employment of deposits or other funds acquired

 

 19 







Table of Contents


 
by the Lenders to fund such Fixed Rate Loan. A certificate as to the amount of such loss or expense submitted by the Lenders to Borrower shall be conclusive and binding for all purposes, absent
manifest error. 
  
 (f)  Funding of Loans.    Agent shall notify each Lender of
the date, amount and initial Interest Period (if applicable) of any Eurodollar Loan or Alternate Currency Loan promptly upon the receipt of such notice, and, in any event, by 2:00 P.M. (Cleveland, Ohio time) on the date such notice is received. On
the date such Loan is to be made, each Lender shall provide Agent, not later than 3:00 P.M. (Cleveland, Ohio time), with the amount in federal or other immediately available funds, required of it. If Agent elects to advance the proceeds of such Loan
prior to receiving funds from such Lender, Agent shall have the right, upon prior notice to Borrower, to debit any account of Borrower or otherwise receive from Borrower, on demand, such amount, in the event that such Lender fails to reimburse Agent
in accordance with this subsection. Agent shall also have the right to receive interest from such Lender at the Federal Funds Effective Rate in the event that such Lender shall fail to provide its portion of the Loan on the date requested and Agent
elects to provide such funds. 
  
 Section 2.04    
Interest. 
  
 (a)    Revolving Loans. 
  
 (i)  Base Rate Loans.    Borrower shall pay interest on the unpaid principal amount
of Revolving Loans that are Base Rate Loans outstanding from time to time from the date thereof until paid at the Derived Base Rate from time to time in effect. Interest on such Base Rate Loans shall be payable, commencing June 30, 2002, and on the
last day of each succeeding September, December, March and June thereafter and at the maturity thereof. 
  
 (ii)  Fixed Rate Loans.    Borrower shall pay interest on the unpaid principal amount of each Revolving Loan that is a Eurodollar Loan or an Alternate Currency Loan outstanding from time to time,
fixed in advance on the first day of the Interest Period applicable thereto through the last day of the Interest Period applicable thereto (but subject to changes in the Applicable Margin), at the Derived Fixed Rate. Interest on all such Fixed Rate
Loans shall be payable on each Interest Adjustment Date (provided that if an Interest Period exceeds three months, the interest must be paid every three months, commencing three months from the beginning of such Interest Period). 

 
 (b)  Swing Loans.    Borrower shall pay interest, for the sole benefit of Agent (and any
Lender that has purchased a participation in such Swing Loan), on the unpaid principal amount of each Swing Loan outstanding from time to time from the date thereof until paid at the Derived Swing Loan Rate applicable to such Swing Loan. Interest on
each Swing Loan shall be payable on the Swing Loan Maturity Date applicable thereto. Each Swing Loan shall bear interest for a minimum of one day. 
  
 (c)  Default Rate.    Anything herein to the contrary notwithstanding, if an Event of Default shall occur hereunder, at the option of Agent or the Required Lenders,
the principal of each Note, the unpaid interest thereon and any other amounts owing hereunder shall bear 
 

 20 







Table of Contents


  

	interest,
	 
	until paid, at the Default Rate. In no event shall the rate of interest hereunder exceed the maximum rate allowable by law. 
 


 
 Section 2.05    
Evidence of Indebtedness. 
  
 (a)  Revolving
Loans.    The obligation of Borrower to repay the Revolving Loans made by each Lender and to pay interest thereon shall be evidenced by a Revolving Credit Note, payable to the order of such Lender in the principal amount of
its Revolving Credit Commitment, or, if less, the aggregate unpaid principal amount of Revolving Loans made hereunder by such Lender. 
  
 (b)  Swing Loans.    The obligation of Borrower to repay the Swing Loans and to pay interest thereon shall be evidenced by a Swing Line Note, payable to the order of Agent in the
principal amount of the Swing Line Commitment, or, if less, the aggregate unpaid principal amount of Swing Loans made hereunder by Agent. 
  
 Section 2.06    
Payment on Notes, Etc. 
  
 (a)  Payments
Generally.    Each payment made hereunder by Borrower shall be made without any offset, abatement, recoupment, counterclaim, withholding or reduction whatsoever. 
  
 (b)  Payments in Alternate Currency.    With respect to any Alternate Currency Loan, all payments (including prepayments) to any Lender
of the principal of or interest on such Alternate Currency Loan shall be made in the same Alternate Currency as the original Loan. All such payments shall be remitted by Borrower to Agent at Agent’s main office (or at such other office or
account as designated in writing by Agent to Borrower) for the account of the Lenders not later than 11:00 A.M. (Cleveland, Ohio time) on the due date thereof in same day funds. Any payments received by Agent after 11:00 A.M. (Cleveland, Ohio time)
shall be deemed to have been made and received on the next following Business Day. 
  
 (c)  Payments in
Dollars.    With respect to (i) the payment of any Loan (other than an Alternate Currency Loan), or (ii) any other payment to Agent and the Lenders that is not covered by subsection (b) hereof, all such payments (including
prepayments) to Agent and the Lenders of the principal of or interest on such Loan or other payment, including but not limited to principal, interest, facility or other fees or any other amount owed by Borrower under this Agreement, shall be made in
Dollars. All payments described in this subsection (c) shall be remitted to Agent at its main office for the account of the Lenders not later than 11:00 A.M. (Cleveland, Ohio time) on the due date thereof in immediately available funds. Any such
payments received by Agent after 11:00 A.M. (Cleveland, Ohio time) shall be deemed to have been made and received on the next following Business Day. 
  
 (d)  Payments to Lenders.    Upon Agent’s receipt of payments hereunder, Agent shall immediately distribute to each Lender its ratable share, if any, of the
amount of principal, interest, and facility and other fees received by it for the account of such Lender. Payments received by Agent in Dollars shall be delivered to the Lenders in Dollars in immediately available funds. Payments received by Agent
in any Alternate Currency shall be delivered to the Lenders in such Alternate Currency in same day funds. Each Lender shall record any principal, interest or other payment, the principal amounts of Base Rate Loans and Fixed Rate Loans, the

 

 21 







Table of Contents


  
 type of currency for each Loan, all prepayments and the applicable dates, including Interest Periods,
with respect to the Loans made, and payments received by such Lender, by such method as such Lender may generally employ; provided, however, that failure to make any such entry shall in no way detract from the obligations of Borrower under the
Notes. The aggregate unpaid amount of Loans, types of Loans, Interest Periods and similar information with respect to such Loans set forth on the records of Agent shall be rebuttably presumptive evidence with respect to such information, including
the amounts of principal and interest owing and unpaid on each Note. 
  
 (e)  Timing of
Payments.    Whenever any payment to be made hereunder, including, without limitation, any payment to be made on any Note, shall be stated to be due on a day that is not a Business Day, such payment shall be made on the next
succeeding Business Day and such extension of time shall in each case be included in the computation of the interest payable on such Note; provided, however, that, with respect to any Fixed Rate Loan, if the next succeeding Business Day falls in the
succeeding calendar month, such payment shall be made on the preceding Business Day and the relevant Interest Period shall be adjusted accordingly. 
  
 Section 2.07    
Payments Net of Taxes. 
  
 (a)  General
Provisions.    All payments under this Agreement or any other Loan Document by Borrower or any other Obligor shall be made absolutely without deduction or offset for, and altogether free and clear of, any and all Taxes. If
Borrower or such other Obligor shall be compelled by law to deduct or withhold for any such Taxes, then Borrower or such Obligor, as the case may be, shall pay such additional amounts as may be necessary in order that the net payments after such
deduction, and after giving effect to any United States or foreign jurisdiction (or any state or political subdivision thereof) income taxes required to be paid by the Lenders in respect of such additional amounts, shall equal the amount of interest
provided in Section 2.04 hereof for each Loan plus any principal then due. 
  
 (b)  Alternate Currency
Transactions.    All payments on account of principal, if any, interest and other fees and amounts payable hereunder shall be made without set-off or counterclaim and, unless otherwise required by law, shall be made free and
clear of and without deduction for any Tax, present or future, imposed by any taxing authority in any jurisdiction. If Borrower shall be required to withhold or pay any Tax, it shall make the required withholding and payment in accordance with and
within the time allowed by law, and shall nonetheless pay to the appropriate Lender such additional amounts as shall be necessary to cause such Lender actually to receive in full all amounts (after taking account of any further deduction or
withholding that is required to be made as a consequence of the payment of such additional amounts) on account of principal and interest or other fees or amounts owing to it hereunder, as if such Tax had not been paid. As soon as practicable after
the date that any Tax shall become due and payable, (i) Borrower shall give to such Lender the original or a copy of a receipt for the payment of the Tax, or, if such receipts are not issued by or received from the taxing authority to which the Tax
was paid, a certificate of an officer of Borrower, confirming the date and amount of the payment so made and reasonable details of the calculation of the amount due; and (ii) Borrower shall indemnify and save such Lender harmless from and against
any claim, liability, loss, cost, expense (including without limitation legal, accounting and other professional fees, and interest and penalty charges or fines imposed by any taxing authority in respect of or arising

 

 22 







Table of Contents


 
from non-payment of such Tax) to which such Lender may be exposed or that it may incur, by reason of Borrower’s failure to make punctual payment of any amount required to be paid to a taxing
authority pursuant to this subsection (b) hereof. 
  
 Section 2.08    
Prepayment. 
  
 (a)  Right to Prepay. 
  
 (i)  Subject to the provisions of Section 2.08(b) below, Borrower shall have the right, at any time or from time
to time, to prepay, on a pro rata basis for all of the Lenders, all or any part of the outstanding principal amount of Revolving Loans, as designated by Borrower, plus interest accrued on the amount so prepaid to the date of such prepayment; and

  
 (ii)  Subject to the provisions of Section 2.08(b) below, Borrower shall have the
right, at any time or from time to time, to prepay, for the benefit of Agent (and any Lender that has purchased a participation in such Swing Loan), all or any part of the outstanding principal amount of Swing Loans, as designated by Borrower, plus
interest accrued on the amount so prepaid to the date of such prepayment. 
  
 (b)  Prepayment Fees.

  
 (i)  Base Rate Loans.    Prepayments of Base Rate Loans
shall be without any premium or penalty. 
  
 (ii)  Fixed Rate
Loans.    In any case of prepayment of a Fixed Rate Loan prior to the last date of the applicable Interest Period, Borrower agrees that if the reinvestment rate, as quoted by the money desk of Agent (and determined by such
money desk with respect to its cost of funds for the remaining portion of the applicable Interest Period) (the “Reinvestment Rate”), shall be lower than the Alternate Currency Rate or Eurodollar Rate applicable to such Fixed Rate
Loan that is intended to be prepaid (hereinafter, the “Current Rate”), then Borrower shall, upon written notice by Agent, promptly pay to Agent, for the benefit of the Lenders, in immediately available funds, a prepayment fee equal
to the product of (a) a rate (the “Prepayment Rate”) that shall be equal to the difference between the Current Rate and the Reinvestment Rate, times (b) the principal amount of the Fixed Rate Loan that is to be prepaid, times (c)
(i) the number of days remaining in the Interest Period of the Fixed Rate Loan that is to be prepaid divided by (ii) 360. In addition, Borrower shall immediately pay to Agent, for the account of the Lenders, the amount of any additional costs or
expenses (including, without limitation, cost of telex, wires, or cables) incurred by Agent or the Lenders in connection with the prepayment, upon Borrower’s receipt of a written statement from Agent. Each prepayment of a Fixed Rate Loan shall
be in the aggregate principal amount of not less than $5,000,000, except in the case of a mandatory prepayment pursuant to Section 2.12 or Article III hereof. 
  
 (iii)  Swing Loans.    In the case of prepayment of a Swing Loan, Borrower agrees to pay to Agent, on demand, for any
resulting loss (including loss of anticipated

 

 23 







Table of Contents


 
profits), cost or expense of Agent as a result thereof, including, without limitation, any loss incurred in obtaining, liquidating or employing deposits. 
  
 (c)  Notice of Prepayment.    Borrower shall give Agent written notice of prepayment of any Swing
Loan or Base Rate Loan by not later than 11:00 A.M. (Cleveland, Ohio time) on the Business Day such prepayment is to be made and written notice of the prepayment of any Fixed Rate Loan not later than 1:00 P.M. (Cleveland, Ohio time) three Business
Days prior to the Business Day on which such prepayment is to be made. 
  
 (d)  Minimum
Amount.    Each prepayment of (i) a Fixed Rate Loan by Borrower shall be in the aggregate principal amount of not less than $5,000,000 (or, with respect to an Alternate Currency Loan, the Dollar Equivalent of such amount) and
(ii) a Base Rate Loan by Borrower shall be in the aggregate principal amount of not less than $1,000,000, except in the case of a mandatory prepayment in connection with Section 2.12 hereof or Article III hereof. 
  
 (e)  Certificate.    Any Lender seeking reimbursement or indemnification pursuant to any provision of
this Section 2.08 shall present a certificate to Borrower setting forth the calculations therefor, which certificate shall, in the absence of manifest error, be conclusive and binding as to the amount thereof. 
  
 Section 2.09    
Facility and Other Fees. 
  
 (a)  Borrower shall pay to Agent, for the ratable
account of the Lenders, as a consideration for the Commitment, a facility fee from the Closing Date to and including the last day of the Commitment Period, payable quarterly at a rate per annum equal to (i) the Applicable Facility Fee Rate then in
effect, times (ii) the maximum Total Commitment Amount during such quarter. The facility fee shall be payable in arrears, on June 30, 2002 and on the last day of each succeeding September, December, March and June thereafter and on the last day of
the Commitment Period. 
  
 (b)  Borrower shall pay to Agent, for its sole benefit, the fees set forth in
the Agent Fee Letter. 
  
 Section 2.10    
Reduction of Commitment. 
  
 (a)  Voluntary
Reduction.    Borrower may at any time or from time to time permanently reduce in whole or ratably in part the Total Commitment Amount hereunder to an amount not less than the then existing Revolving Credit Exposure, by
giving Agent not fewer than three Business Days’ notice of such reduction, provided that any such partial reduction shall be in an aggregate amount, for all of the Lenders, of not less than $10,000,000. 
  
 (b)  Mandatory Reduction.    Concurrently with the receipt by Borrower of the proceeds of any
Indebtedness pursuant to Section 5.08(h) hereof, the Total Commitment Amount shall be permanently reduced by an amount equal to 50% of such proceeds. 
  
 (c)  Notification and Effect.    Agent shall promptly notify each Lender of the date of each reduction of the Commitment pursuant to this Section and such
Lender’s proportionate share thereof. If the Total Commitment Amount is permanently reduced to zero, on the effective

 

 24 







Table of Contents


 
date of such reduction (Borrower having prepaid in full the unpaid principal balance, if any, of the Notes, together with all interest and facility and other fees accrued and unpaid), all of the
Notes shall be delivered by the Lenders to Agent marked “Canceled” and Agent shall redeliver such Notes to Borrower. Any partial reduction in the Total Commitment Amount shall be effective during the remainder of the Commitment Period.

  
 Section 2.11    
Computation of Interest and Fees.    With the exception of Alternate Currency Loans made in Pounds Sterling, Canadian Dollars or Australian Dollars and Base Rate Loans, interest on Loans and facility
and other fees and charges hereunder shall be computed on the basis of a year having 360 days and calculated for the actual number of days elapsed. With respect to Alternate Currency Loans made in Pounds Sterling, Canadian Dollars or Australian
Dollars and Base Rate Loans, interest shall be computed on the basis of a year having three 365 days or 366 days, as the case may be, and calculated for the actual number of days elapsed. 
  
 Section 2.12    
Mandatory Payment. 
  
 (a)  If, as of any date, the Revolving Credit Exposure
shall exceed the Total Commitment Amount, Borrower shall prepay, by no later than the next Business Day, an aggregate principal amount of the Loans sufficient to bring the Revolving Credit Exposure within the Total Commitment Amount; provided,
however, that, notwithstanding the foregoing, if the Dollar Equivalent of the Alternate Currency Exposure has increased during any Interest Period or Interest Periods applicable to Alternate Currency Loans as a result of fluctuations in the exchange
rate applicable to the relevant Alternate Currency or Alternate Currencies such that the Revolving Credit Exposure at any time exceeds the Total Commitment Amount, then Borrower shall not be obligated to make a prepayment pursuant to this subpart
(a) so long as the Revolving Credit Exposure does not exceed an amount equal to 105% of the Total Commitment Amount. 
  
 (b)  Concurrently with the receipt by Borrower of the proceeds of any Indebtedness pursuant to Section 5.08(h) hereof, Borrower shall make a prepayment of the Loans in an amount equal to 100% of such proceeds (minus any
fees and expenses actually incurred by Borrower in connection with the incurrence of such Indebtedness). 
  
 (c)  Any prepayment of a Loan pursuant to this Section 2.12 shall be subject to the prepayment fees set forth in Section 2.08 hereof. Unless otherwise specified by Borrower to Agent, each such prepayment shall be applied
(i) first, on a pro rata basis, to the outstanding principal balance of the Base Rate Loans, (ii) second, on a pro rata basis, to the outstanding principal balance of the Eurodollar Loans, (iii) third, on a pro rata basis, to the outstanding
principal balance of the Alternate Currency Loans, and (iv) fourth, to the outstanding principal balance of the Swing Loans 
  
 Section 2.13    
Extension of Commitment.    Contemporaneously with the delivery of the financial statements required pursuant to Section 5.03(b) hereof (beginning with the financial statements for Borrower’s
fiscal year ending March 31, 2004), Borrower may deliver a Request for Extension, requesting that the Lenders extend the Commitment Period for an additional year. Each such extension shall require the unanimous written consent of all of the Lenders
and shall be upon such terms and conditions as may be agreed to by Borrower, Agent, and the Lenders. 
 

 25 







Table of Contents


 
Borrower shall pay any attorneys’ fees or other expenses of Agent in connection with the documentation of any such extension, as well as such other fees as may be agreed upon between
Borrower and the Lenders. 
  
 ARTICLE III. 
  
 
ADDITIONAL PROVISIONS RELATING TO FIXED RATE 
 LOANS; INCREASED CAPITAL; TAXES. 
  
 Section 3.01    
Reserves or Deposit Requirements, Etc.    If, at any time, any law, treaty or regulation (including, without limitation, Regulation D of the Board of Governors of the Federal Reserve System) or the
interpretation thereof by any governmental authority charged with the administration thereof or any central bank or other fiscal, monetary or other authority shall impose (whether or not having the force of law), modify or deem applicable any
reserve and/or special deposit requirement (other than reserves included in the Reserve Percentage, the effect of which is reflected in the interest rate(s) of the Fixed Rate Loan(s) in question) against assets held by, or deposits in or for the
amount of any Fixed Rate Loan by, any Lender, and the result of the foregoing is to increase the cost (whether by incurring a cost or adding to a cost) to such Lender of making or maintaining hereunder such Fixed Rate Loan or to reduce the amount of
principal or interest received by such Lender with respect to such Fixed Rate Loan, then, upon demand by such Lender, Borrower shall pay to such Lender from time to time on Interest Adjustment Dates with respect to such Fixed Rate Loan, as
additional consideration hereunder, additional amounts sufficient to fully compensate and indemnify such Lender for such increased cost or reduced amount, assuming (which assumption such Lender need not corroborate) such additional cost or reduced
amount was allocable to such Fixed Rate Loan. A certificate as to the increased cost or reduced amount as a result of any event mentioned in this Section 3.01, setting forth the calculations therefor, shall be promptly submitted by such Lender to
Borrower and shall, in the absence of manifest error, be conclusive and binding as to the amount thereof. Notwithstanding any other provision of this Agreement, after any such demand for compensation by any Lender, Borrower, upon at least three
Business Days’ prior written notice to such Lender through Agent, may prepay any affected Fixed Rate Loan in full or, with respect to Eurodollar Loans, convert such Eurodollar Loan to a Base Rate Loan regardless of the Interest Period thereof.
Any such prepayment or conversion shall be subject to the prepayment fees set forth in Section 2.08 hereof. Each Lender shall notify Borrower as promptly as practicable (with a copy thereof delivered to Agent) of the existence of any event that will
likely require the payment by Borrower of any such additional amount under this Section. 
  
 Section
3.02    
Tax Law, Etc. 
  
 (a)  In the event that by reason of any law, regulation or
requirement or in the interpretation thereof by an official authority, or the imposition of any requirement of any central bank whether or not having the force of law, any Lender shall, with respect to this Agreement or any transaction under this
Agreement, be subjected to any tax, levy, impost, charge, fee, duty, deduction or withholding of any kind whatsoever (other than taxes imposed on or measured by the income of any Lender, or franchise taxes imposed on such Lender, by any jurisdiction
in which such Lender is organized or in which such Lender is resident or doing business) and if any

 

 26 







Table of Contents


 
such measures or any other similar measure shall result in an increase in the cost to such Lender of making or maintaining any Fixed Rate Loan or in a reduction in the amount of principal,
interest or facility fee receivable by such Lender in respect thereof, then such Lender shall promptly notify Borrower stating the reasons therefor. Borrower shall thereafter pay to such Lender, as additional consideration hereunder, such additional
amounts as shall fully compensate such Lender for such increased cost or reduced amount. Borrower shall pay such amounts within five Business Days upon demand therefor from any such Lender that shall have provided to Borrower a certificate as to any
such increased cost or reduced amount, setting forth the calculations therefor, which certificate shall, in the absence of manifest error, be conclusive and binding as to the amount thereof. 
  
 (b)  Notwithstanding any other provision of this Agreement, after any such demand for compensation by any Lender, Borrower, upon at least three Business
Days’ prior written notice to such Lender through Agent, may prepay any affected Fixed Rate Loan in full or, with respect to Eurodollar Loans, convert such Eurodollar Loan to a Base Rate Loan regardless of the Interest Period of any thereof.
Any such prepayment or conversion shall be subject to the prepayment fees set forth in Section 2.08 hereof. 
  
 Section 3.03    
Eurodollar or Alternate Currency Deposits Unavailable or Interest Rate Unascertainable.    In respect of any Fixed Rate Loan, in the event that Agent shall have determined that (a) for Eurodollar Loans,
that Dollar deposits or (b) for Alternate Currency Loans, that deposits of the relevant Alternate Currency, of the relevant amount for the relevant Interest Period for such Fixed Rate Loan are not available to Agent in the applicable Dollar or
Alternate Currency market, as the case may be, or that, by reason of circumstances affecting such market, adequate and reasonable means do not exist for ascertaining the applicable Eurodollar Rate or Alternate Currency Rate applicable to such
Interest Period, as the case may be, Agent shall promptly give notice of such determination to Borrower and (i) any notice of a new Eurodollar Loan or Alternate Currency Loan, as the case may be, (or conversion of an existing Base Rate Loan to a
Eurodollar Loan) previously given by Borrower and not yet borrowed (or converted, as the case may be) shall be deemed a notice to make a Base Rate Loan, and (ii) Borrower shall be obligated either to prepay, or with respect to a Eurodollar Loan, to
convert to a Base Rate Loan, any outstanding Fixed Rate Loan on the last day of the then current Interest Period with respect thereto. 
  
 Section 3.04    
Indemnity.    Without prejudice to any other provision of this Agreement, Borrower hereby agrees to indemnify each Lender against any loss or expense that such Lender may sustain or incur as a
consequence of (a) any default by Borrower in payment when due of any amount hereunder in respect of any Fixed Rate Loan, or (b) the failure by Borrower to consummate the borrowing of any Fixed Rate Loan after making a request therefor, including,
but not limited to, any loss of profit, premium or penalty incurred by such Lender in respect of funds borrowed by it for the purpose of making or maintaining such Fixed Rate Loan, as determined by such Lender in the exercise of its sole but
reasonable discretion. A certificate as to any such loss or expense shall be promptly submitted by such Lender to Borrower and shall, in the absence of manifest error, be conclusive and binding as to the amount thereof. 
  
 Section 3.05    
Changes in Law Rendering Fixed Rate Loans Unlawful.    If at any time any new law, treaty or regulation, or any change in any existing law, treaty or regulation, or any

 

 27 







Table of Contents


 
interpretation thereof by any governmental or other regulatory authority charged with the administration thereof, shall make it unlawful for any Lender to fund any Fixed Rate Loan that it is
committed to make hereunder in any Alternate Currency or Dollars, as the case may be, the commitment of such Lender to fund such Fixed Rate Loan shall, upon the happening of such event, forthwith be suspended for the duration of such illegality, and
such Lender shall by written notice to Borrower and Agent declare that its commitment with respect to such Fixed Rate Loan has been so suspended and, if and when such illegality ceases to exist, such suspension shall cease and such Lender shall
similarly notify Borrower and Agent. If any such change shall make it unlawful for any Lender to continue in effect the funding in the applicable Eurodollar or Alternate Currency market, as the case may be, of any Fixed Rate Loan previously made by
it hereunder, such Lender shall, upon the happening of such event, notify Borrower, Agent and the other Lenders thereof in writing stating the reasons therefor, and Borrower shall, on the earlier of (a) the last day of the then current Interest
Period or (b) if required by such law, regulation or interpretation, on such date as shall be specified in such notice, either convert such Fixed Rate Loan (if a Eurodollar Loan) to a Base Rate Loan or prepay such Fixed Rate Loan to the Lenders in
full. Any such prepayment or conversion shall be subject to the prepayment fees described in Section 2.08 hereof. 
  
 Section 3.06    
Funding.    Each Lender may, but shall not be required to, make Fixed Rate Loans hereunder with funds obtained outside the United States. 
  
 Section 3.07    
Capital Adequacy.    If any Lender shall have determined, after the Closing Date, that the adoption of any applicable law, rule, regulation or guideline regarding capital adequacy, or any change
therein, or any change in the interpretation or administration thereof by any governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by any Lender (or its lending office)
with any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank or comparable agency, has or would have the effect of reducing the rate of return on such Lender’s capital (or
the capital of its holding company) as a consequence of its obligations hereunder to a level below that which such Lender (or its holding company) could have achieved but for such adoption, change or compliance (taking into consideration such
Lender’s policies or the policies of its holding company with respect to capital adequacy) by an amount deemed by such Lender to be material, then from time to time, within 15 days after demand by such Lender (with a copy to Agent), Borrower
shall pay to such Lender such additional amount or amounts as shall compensate such Lender (or its holding company) for such reduction. Each Lender shall designate a different lending office if such designation will avoid the need for, or reduce the
amount of, such compensation and will not, in the judgment of such Lender, be otherwise disadvantageous to such Lender. A certificate of any Lender claiming compensation under this Section and setting forth the additional amount or amounts to be
paid to it hereunder shall be conclusive in the absence of manifest error. In determining such amount, such Lender may use any reasonable averaging and attribution methods. Failure on the part of any Lender to demand compensation for any reduction
in return on capital with respect to any period shall not constitute a waiver of such Lender’s rights to demand compensation for any reduction in return on capital in such period or in any other period. The protection of this Section shall be
available to each Lender regardless of any possible contention of the invalidity or inapplicability of the law, regulation or other condition that shall have been imposed. 
 

 28 







Table of Contents


  
 ARTICLE IV. 
  
 
REPRESENTATIONS AND WARRANTIES 
  
 Borrower
represents and warrants that the statements set forth in this Article IV are true, correct and complete: 
  
 Section
4.01    
Corporate Existence; Subsidiaries; Foreign Qualification. 
  
 (a)  Each Company
is an entity duly organized, validly existing, and in good standing under the laws of its state of organization and is duly qualified and authorized to do business and is in good standing as a foreign entity in each jurisdiction where the character
of its property or its business activities makes such qualification necessary, except where the failure to so qualify would not have a Material Adverse Effect. 
  
 (b)  Schedule 4.01 hereto sets forth (i) the state of organization of Borrower, and (ii) each state or other jurisdiction in which Borrower is qualified to do business as a foreign
corporation. 
  
 (c)  Schedule 4.01 hereto sets forth (i) each Subsidiary of Borrower and each
Subsidiary of each other Company, (ii) such Subsidiary’s state of organization, (iii) each state or other jurisdiction in which such Subsidiary is qualified to do business as a foreign entity, and (iv) the direct or indirect ownership of
Borrower in such Subsidiary. 
  
 Section 4.02    
Corporate Authority.    Borrower has the right and power and is duly authorized and empowered to enter into, execute and deliver the Loan Documents to which it is a party and to perform and observe the
provisions of the Loan Documents. The Loan Documents to which Borrower is a party have been duly authorized and approved by Borrower’s Board of Directors and are the valid and binding obligations of Borrower, enforceable against Borrower in
accordance with their respective terms. The execution, delivery and performance of the Loan Documents will not conflict with nor result in any breach in any of the provisions of, or constitute a default under, or result in the creation of any Lien
(other than Liens permitted under Section 5.09 hereof) upon any assets or property of any Company under the provisions of such Company’s Organizational Documents or any agreement. 
  
 Section 4.03    
Compliance With Laws.    Each Company: 
  
 (a)  holds
permits, certificates, licenses, orders, registrations, franchises, authorizations, and other approvals from federal, state, local, and foreign governmental and regulatory bodies necessary for the conduct of its business and is in compliance with
all applicable laws relating thereto, except where the failure to do so would not have or result in a Material Adverse Effect; 
  
 (b)  is in compliance with all federal, state, local, or foreign applicable statutes, rules, regulations, and orders including, without limitation, those relating to environmental protection, occupational safety and health,
and equal employment practices, except where the failure to do so would not have or result in a Material Adverse Effect; and 
 

 29 







Table of Contents


  
 (c)  is not in violation of or in default under any agreement to which
it is a party or by which its assets are subject or bound, except with respect to any violation or default that would not have or result in a Material Adverse Effect. 
  
 Section 4.04    
Litigation and Administrative Proceedings.    Except as disclosed on Schedule 4.04 hereto, there are (a) no lawsuits, actions, investigations, or other proceedings pending or threatened against
any Company, or in respect of which any Company may have any liability, in any court or before any governmental authority, arbitration board, or other tribunal, (b) no orders, writs, injunctions, judgments, or decrees of any court or government
agency or instrumentality to which any Company is a party or by which the property or assets of any Company are bound, and (c) no grievances, disputes, or controversies outstanding with any union or other organization of the employees of any
Company, or threats of work stoppage, strike, or pending demands for collective bargaining, which, as to subsections (a) through (c) hereof, would have or would be reasonably expected to have a Material Adverse Effect. 
  
 Section 4.05    
Title to Assets.    Each Company has good title to and ownership of all property it purports to own, which property is free and clear of all Liens, except those permitted under Section 5.09 hereof.

  
 Section 4.06    
Liens and Security Interests.    On and after the Closing Date, except for Liens permitted pursuant to Section 5.09 hereof, (a) to best of Borrower’s knowledge, there is no financing statement
(other than a precautionary financing statement filed in connection with any true operating lease) outstanding covering any personal property of any Company; (b) there is no mortgage outstanding covering any real property of any Company; and (c) no
real or personal property of any Company is subject to any security interest or Lien of any kind other than any security interest or Lien that may be granted to Agent, for the benefit of the Lenders. No Company has entered into any contract or
agreement (other than an Excluded Agreement) that exists on or after the Closing Date that would prohibit Agent or the Lenders from acquiring a security interest, mortgage or other Lien on, or a collateral assignment of, any of the property or
assets of any Company. 
  
 Section 4.07    
Tax Returns.    All foreign, federal, state and local tax returns and other reports required by law to be filed in respect of the income, business, properties and employees of each Company have been
filed and all taxes, assessments, fees and other governmental charges that are due and payable have been paid, except where the failure to do so does not and will not cause or result in a Material Adverse Effect or where such tax returns, taxes,
assessments, fees or other governmental charges are being contested in good faith by such Company. The provision for taxes on the books of each Company is adequate for all years not closed by applicable statutes and for the current fiscal year.

  
 Section 4.08    
Environmental Laws.    Each Company is in compliance with any and all Environmental Laws, including, without limitation, all Environmental Laws in all jurisdictions in which any Company owns or
operates, or has owned or operated, a facility or site, arranges or has arranged for disposal or treatment of hazardous substances, solid waste or other wastes, accepts or has accepted for transport any hazardous substances, solid waste or other
wastes or holds or has held any interest in real property or otherwise, except where the failure to do so would not have a Material Adverse Effect. No litigation or proceeding arising under, relating to

 

 30 







Table of Contents


 
or in connection with any Environmental Law is pending or, to the best knowledge of each Company, threatened, against any Company, any real property in which any Company holds or has held an
interest or any past or present operation of any Company which, if determined adversely, would have a Material Adverse Effect. No release, threatened release or disposal of hazardous waste, solid waste or other wastes is occurring, or has occurred
(other than those that are currently being cleaned up in accordance with Environmental Laws), on, under or to any real property in which any Company holds any interest or performs any of its operations, in violation of any Environmental Law, except
where such release or disposal would not have a Material Adverse Effect. As used in this Section, “litigation or proceeding” means any demand, claim, notice, suit, suit in equity, action, administrative action, investigation or inquiry
whether brought by any governmental authority, private Person or otherwise. 
  
 Section
4.09    
Employee Benefits Plans.    Each ERISA Plan is identified on Schedule 4.09 hereto. No ERISA Event has occurred prior to the Closing Date that is unresolved and no other ERISA Event has occurred
or is expected to occur with respect to an ERISA Plan. Full payment has been made of all amounts which a Controlled Group member is required, under applicable law or under the governing documents, to have been paid as a contribution to or a benefit
under each ERISA Plan. The liability of each Controlled Group member with respect to each ERISA Plan has been fully funded based upon reasonable and proper actuarial assumptions, has been fully insured, or has been fully reserved for on its
financial statements. No changes have occurred or are expected to occur that would cause a material increase in the cost of providing benefits under the ERISA Plan. With respect to each ERISA Plan that is intended to be qualified under Code Section
401(a): (a) the ERISA Plan and any associated trust operationally comply with the applicable requirements of Code Section 401(a), (b) the ERISA Plan and any associated trust have been amended to comply with all such requirements as currently in
effect, other than those requirements for which a retroactive amendment can be made within the “remedial amendment period” available under Code Section 401(b) (as extended under Treasury Regulations and other Treasury pronouncements upon
which taxpayers may rely), (c) the ERISA Plan and any associated trust have received a favorable determination letter from the Internal Revenue Service stating that the ERISA Plan qualifies under Code Section 401(a), that the associated trust
qualifies under Code Section 501(a) and, if applicable, that any cash or deferred arrangement under the ERISA Plan qualifies under Code Section 401(k), unless the ERISA Plan was first adopted at a time for which the above-described “remedial
amendment period” has not yet expired, (d) the ERISA Plan currently satisfies the requirements of Code Section 410(b), without regard to any retroactive amendment that may be made within the above-described “remedial amendment
period”, and (e) no contribution made to the ERISA Plan is subject to an excise tax under Code Section 4972. With respect to any Pension Plan, except as set forth on Schedule 4.09 hereto, the “accumulated benefit obligation” of
Controlled Group members with respect to the Pension Plan (as determined in accordance with Statement of Accounting Standards No. 87, “Employers’ Accounting for Pensions”) does not exceed the fair market value of Pension Plan assets.

  
 Section 4.10    
Consents or Approvals.    No consent, approval or authorization of, or filing, registration or qualification with, any governmental authority or any other Person is required to be obtained or completed
by Borrower in connection with the execution, delivery or performance of any of the Loan Documents, that has not already been obtained or completed. 
 

 31 







Table of Contents


  
 Section 4.11     
Solvency.    Borrower has received consideration that is the reasonable equivalent value of the obligations and liabilities that Borrower has incurred to the Lenders. Borrower is not insolvent as
defined in any applicable state or federal statute, nor will Borrower be rendered insolvent by the execution and delivery of the Loan Documents to Agent and the Lenders. Borrower is not engaged or about to engage in any business or transaction for
which the assets retained by it are or will be an unreasonably small amount of capital, taking into consideration the obligations to Agent and the Lenders incurred hereunder. Borrower does not intend to, nor does it believe that it will, incur debts
beyond its ability to pay such debts as they mature. 
  
 Section 4.12    
Financial Statements.    The audited Consolidated financial statements of Borrower for the fiscal year ended March 31, 2001, and the unaudited interim Consolidated financial statements of Borrower for
the fiscal quarter ended December 31, 2001, furnished to Agent and the Lenders, are true and complete, have been prepared in accordance with GAAP, and fairly present the financial condition of the Companies as of the date of such financial
statements and the results of their operations for the period then ending. Since the dates of such statements, there has been no material adverse change in any Company’s financial condition, properties or business nor any change in any
Company’s accounting procedures. 
  
 Section 4.13    
Regulations.    Borrower is not engaged principally or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any “margin stock”
(within the meaning of Regulation U of the Board of Governors of the Federal Reserve System of the United States of America). Neither the granting of any Loan (or any conversion thereof) nor the use of the proceeds of any Loan will violate, or be
inconsistent with, the provisions of Regulation U or X of such Board of Governors. 
  
 Section
4.14    
Material Agreements.    Except as disclosed in Borrower’s most recent quarterly or annual statement required to be filed with the SEC, no Company is a party to any material agreement that, if
violated, breached, or terminated for any reason, would have or would be reasonably expected to have a Material Adverse Effect. 
  
 Section 4.15    
Intellectual Property.    Each Company owns, possesses, or has the right to use all of the patents, patent applications, trademarks, service marks, copyrights, licenses, and rights with respect to the
foregoing necessary for the conduct of its business without any known conflict with the rights of others, except where the failure to do so would not have a Material Adverse Effect or, with respect to any known conflict, if such conflict were
determined adversely to such Company, would not have a Material Adverse Effect. 
  
 Section
4.16    
Insurance.    Each Company maintains with financially sound and reputable insurers insurance with coverage and limits as required by law and as is customary with persons engaged in the same businesses
as the Companies. 
  
 Section 4.17    
Investment Company; Holding Company.    No Company is (a) an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment
Company Act of 1940, as amended, or (b) subject to regulation under the Public Utility Holding Company Act of 1935, the Federal Power Act, each as amended, or any foreign, federal, state or local statute or regulation limiting its ability to incur
Indebtedness. 
 

 32 







Table of Contents


  
 Section 4.18    
Accurate and Complete Statements.    Neither the Loan Documents nor any written statement made by any Company in connection with any of the Loan Documents contains any untrue statement of a material
fact or omits a material fact necessary to make the statements contained therein or in the Loan Documents not misleading. After due inquiry by Borrower, there is no known fact that any Company has not disclosed to Agent and the Lenders that has or
would have a Material Adverse Effect. 
  
 Section 4.19    
Defaults.    No Default or Event of Default exists hereunder, nor will any begin to exist immediately after the execution and delivery hereof. 
  
 ARTICLE V. 
  
 
COVENANTS 
  
 Borrower agrees that so long as the Commitment remains in
effect and thereafter until all of the Debt shall have been paid in full, Borrower shall perform and observe, and shall cause each other Company to perform and observe, each of the following provisions: 
  
 Section 5.01    
Insurance.    Each Company shall (a) maintain insurance to such extent and against such hazards and liabilities as is commonly maintained by Persons similarly situated; and (b) within ten days of any
Lender’s written request, furnish to such Lender such information about such Company’s insurance as that Lender may from time to time reasonably request, which information shall be prepared in form and detail satisfactory to such Lender
and certified by a Financial Officer of such Company. 
  
 Section 5.02    
Money Obligations.    Each Company shall pay in full (a) prior in each case to the date when penalties would attach, all taxes, assessments and governmental charges and levies (except only those so long
as and to the extent that the same shall be contested in good faith by appropriate and timely proceedings and for which adequate reserves have been established in accordance with GAAP) for which it may be or become liable or to which any or all of
its properties may be or become subject; (b) all of its wage obligations to its employees in compliance with the Fair Labor Standards Act (29 U.S.C. §§ 206–207) or any comparable provisions; and (c) all of its other obligations
calling for the payment of money (except only those so long as and to the extent that the same shall be contested in good faith and for which adequate reserves have been established in accordance with GAAP) before such payment becomes overdue.

  
 Section 5.03    
Financial Statements.    Borrower shall furnish to Agent and each Lender: 
  
 (a)  within 45 days after the end of each of the first three quarterly periods of each fiscal year of Borrower, balance sheets of Borrower as of the end of such period and statements of income (loss),
stockholders’ equity and cash flow for the quarter and fiscal year to date periods, all prepared on a Consolidated basis, in accordance with GAAP, and in form and detail satisfactory to Agent and the Lenders and certified by a Financial
Officer; 
  
 (b)  within 90 days after the end of each fiscal year of Borrower, an annual
audit report of Borrower for that year prepared on a Consolidated basis, in accordance with GAAP,

 

 33 







Table of Contents


 
and in form and detail satisfactory to Agent and certified by an independent public accountant satisfactory to Agent and the Required Lenders, which report shall include balance sheets and
statements of income (loss), stockholders’ equity and cash-flow for that period, together with a certificate by the accountant setting forth any Defaults and Events of Default coming to its attention during the course of its audit or, if none,
a statement to that effect; 
  
 (c)  concurrently with the delivery of the financial
statements in (a) and (b) above, a Compliance Certificate; 
  
 (d)  within 90 days after
the end of each fiscal year of Borrower, commencing with the fiscal year ending March 31, 2003, annual pro-forma projections of Borrower and its Subsidiaries for the then current fiscal year and the next three succeeding fiscal years, to be in form
acceptable to Agent; 
  
 (e)  as soon as available, copies of all notices, reports,
definitive proxy or other statements and other documents sent by Borrower to its shareholders, to the holders of any of its debentures or bonds or the trustee of any indenture securing the same or pursuant to which they are issued, or sent by
Borrower (in final form) to any securities exchange or over the counter authority or system, or to the SEC or any similar federal agency having regulatory jurisdiction over the issuance of Borrower’s securities; and 
  
 (f)  within ten days of the written request of Agent or any Lender, such other information about the financial
condition, properties and operations of any Company as Agent or such Lender may from time to time reasonably request, including, without limitation, consolidating financial statements of the Companies, which information shall be submitted in form
and detail satisfactory to Agent or such Lender and certified by a Financial Officer of the Company or Companies in question. 
  
 Section 5.04    
Financial Records.    Each Company shall 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 Borrower or
such Subsidiaries, as the case may be, in accordance with GAAP, in the case of Borrower, or which are reconcilable to a GAAP presentation, in the case of any Subsidiary. 
  
 Section 5.05    
Franchises.    Each Company shall preserve and maintain at all times its existence, rights and franchises, except as otherwise permitted pursuant to Section 5.12 hereof. 
  
 Section 5.06    
ERISA Compliance.    No Company shall incur any material accumulated funding deficiency within the meaning of ERISA, or any material liability to the PBGC, established thereunder in connection with any
ERISA Plan. Borrower shall furnish to the Lenders (a) as soon as possible and in any event within 30 days after any Company knows or has reason to know that any Reportable Event with respect to any ERISA Plan has occurred, a statement of a Financial
Officer of such Company, setting forth details as to such Reportable Event and the action that such Company proposes to take with respect thereto, together with a copy of the notice of such Reportable Event given to the PBGC if a copy of such notice
is available to such Company, and (b) promptly after receipt thereof a copy of any notice such Company, or any member of the Controlled Group may receive from the PBGC or the Internal

 

 34 







Table of Contents


 
Revenue Service with respect to any ERISA Plan administered by such Company; provided, that this latter clause shall not apply to notices of general application promulgated by the PBGC or the
Internal Revenue Service, except for ministerial errors or other minor compliance errors. Borrower shall promptly notify the Lenders of any material taxes assessed, proposed to be assessed or that Borrower has reason to believe may be assessed
against a Company by the Internal Revenue Service with respect to any ERISA Plan. As used in this Section “material” means the measure of a matter of significance that shall be determined as being an amount equal to 5% of the Consolidated
Net Worth of Borrower. As soon as practicable, and in any event within 20 days, after any Company becomes aware that an ERISA Event has occurred, such Company shall provide Agent with notice of such ERISA Event with a certificate by a Financial
Officer of such Company setting forth the details of the event and the action such Company or another Controlled Group member proposes to take with respect thereto. Borrower shall, at the request of Agent, deliver or cause to be delivered to Agent,
true and correct copies of any documents relating to the ERISA Plan of any Company. 
  
 Section
5.07    
Financial Covenants. 
  
 (a)  Leverage
Ratio.    Borrower shall not suffer or permit at any time the Leverage Ratio to be greater than 3.00 to 1.00. 
  
 (b)  Interest Coverage Ratio.    Borrower shall not suffer or permit at any time the Interest Coverage Ratio to be less than 3.00 to 1.00. 
  
 (c)  Net Worth.    Borrower shall not suffer or permit its Consolidated Net Worth at any time, based
upon the financial statements of the Companies for the most recently completed fiscal quarter, to fall below the current minimum amount required, which current minimum amount required shall be $414,777,000 on the Closing Date through March 30, 2002,
with such current minimum amount required to be positively increased (disregarding any fiscal quarter in which there is a net loss) by the Increase Amount on March 31, 2002, and by an additional Increase Amount on the last day of each fiscal quarter
thereafter. As used herein, the term “Increase Amount” means an amount equal to (i) 50% of the positive Consolidated Net Earnings of the Companies for the fiscal quarter then ended, plus (ii) 100% of the proceeds from any equity
offering by any Company or any debt offering of any Company to the extent actually converted to into equity. 
  
 Section 5.08    
Borrowing.    No Company shall create, incur or have outstanding any Indebtedness of any kind; provided, that this Section shall not apply to any of the following (without duplication): 

 
 (a)  the Loans or any other Indebtedness incurred to Agent or the Lenders pursuant to this Agreement;

  
 (b)  Indebtedness in connection with any Approved Derivatives Contract; 

 
 (c)  Indebtedness (including any capital lease obligation) secured by the Liens described in Section
5.09(d) hereof, so long as the aggregate principal amount of all such Indebtedness outstanding at any time for all Companies does not exceed an amount equal to 10% of the Consolidated Net Worth of Borrower for the most recently completed fiscal
quarter; 
 

 35 







Table of Contents


  
 (d)  loans to a Company from a Company so long as each
such Company is Borrower or a Guarantor of Payment; 
  
 (e)  Permitted Foreign Subsidiary
Loans and Investments; 
  
 (f)  Permitted Third-Party Guaranties; 
  
 (g)  Permitted Insurance Subsidiary Loans and Investments 
  

(h)  unsecured Indebtedness of Borrower incurred pursuant to a Debt Placement subsequent to the Closing Date, provided that (i) the aggregate
principal amount of the Indebtedness incurred pursuant to such Debt Placement shall not exceed $100,000,000 at any time, (ii) the maturity date of the Indebtedness incurred pursuant to such Debt Placement shall be no earlier than the date that is 90
days after the last day of the Commitment Period as then in effect, (iii) the covenants and agreements relating to the Indebtedness incurred pursuant to such Debt Placement are not more restrictive than the covenants and agreements set forth in this
Agreement, (iv) concurrently with the receipt by Borrower of any proceeds of the Indebtedness incurred pursuant to such Debt Placement, Borrower shall comply with the provisions of Section 2.10(b) and Section 2.12(b) hereof, and (v) if any
Indebtedness incurred pursuant to such Debt Placement is to be Subordinated Indebtedness, such Subordinated Indebtedness shall be subject to a subordination agreement or other subordination provisions satisfactory to Agent and the Required Lenders;
or 
  
 (i)  unsecured Indebtedness of Borrower or any of the Guarantors of Payment,
provided that (i) the covenants and agreements relating to such Indebtedness are not more restrictive than the covenants and agreements set forth in this Agreement, (ii) Borrower shall be in pro forma compliance with Section 5.07 hereof after giving
effect to the incurrence of such Indebtedness, (ii) if any such Indebtedness is to be Subordinated Indebtedness, such Subordinated Indebtedness shall be subject to a subordination agreement or other subordination provisions satisfactory to Agent and
the Required Lenders, (iii) such Indebtedness shall not have been incurred in connection with a Debt Placement or under or in connection with another committed bank credit facility that involves obligations for borrowed money, and (iv) no Company
(other than Borrower and the Guarantors of Payment) shall be liable, whether directly or indirectly, for any part of such Indebtedness. 
  
 Section 5.09    
Liens.    No Company shall create, assume or suffer to exist any Lien upon any of its property or assets, whether now owned or hereafter acquired; provided that this Section shall not apply to the
following: 
  
 (a)  Liens for taxes not yet due or that are being actively contested in
good faith by appropriate proceedings and for which adequate reserves have been established in accordance with GAAP; 
  
 (b)  other statutory Liens incidental to the conduct of its business or the ownership of its property and assets that (i) were not incurred in connection with the borrowing of money or the obtaining of advances or
credit, and (ii) do not in the aggregate materially detract from the value of its property or assets or materially impair the use thereof in the operation of its business; 
 

 36 







Table of Contents


  
 (c)  Liens on property or assets of a Subsidiary to
secure obligations of such Subsidiary to Borrower or a Guarantor of Payment; 
  
 (d)  purchase money Liens on fixed assets securing the loans pursuant to Section 5.08(c) hereof and capitalized leases, provided that such Lien is limited to the purchase price and only attaches to the property being
acquired; 
  
 (e)  easements or other minor defects or irregularities in title of real
property not interfering in any material respect with the use of such property in the business of any Company; 
  
 (f)  Liens set forth on Schedule 5.09 hereto; or 
  
 (g)  any Lien granted to Agent, for the benefit of the Lenders. 
  
 No Company shall enter
into any contract or agreement (other than an Excluded Agreement) that would prohibit Agent or the Lenders from acquiring a security interest, mortgage or other Lien on, or a collateral assignment of, any of the property or assets of a Company.

  
 Section 5.10    
Regulations U and X.    No Company shall take any action that would result in any non–compliance of the Loans with Regulations U and X, or any other applicable regulation, of the Board of Governors
of the Federal Reserve System. 
  
 Section 5.11    
Investments and Loans.    No Company shall (a) create, acquire or hold any Subsidiary, (b) make or hold any investment in any stocks, bonds or securities of any kind, (c) be or become a party to any
joint venture or other partnership without the prior written consent of Agent and the Required Lenders, (d) make or keep outstanding any advance or loan to any Person, or (e) be or become a Guarantor of any kind; provided, that this Section shall
not apply to: 
  
 (i)  any endorsement of a check or other medium of payment for deposit or
collection through normal banking channels or similar transaction in the normal course of business; 
  
 (ii)  investments by the Companies in Cash Equivalents; 
  
 (iii)  the holding of Subsidiaries listed on Schedule 4.01 hereto and the creation, acquisition and holding of any new Subsidiary after the Closing Date, so long as such new Subsidiary is created, acquired or held in
accordance with the terms and conditions of this Agreement, including, without limitation, Section 5.12, Section 5.13, and Section 5.20 hereof; 
  
 (iv)  loans to a Company from a Company, or investments in a Company by a Company, so long as each such Company is Borrower or a Guarantor of Payment; 
  
 (v)  Permitted Foreign Subsidiary Loans and Investments; 
 

 37 







Table of Contents


  
 (vi)  guarantees of Indebtedness of the Companies
incurred or permitted pursuant to this Agreement (including any guaranty of the Indebtedness permitted pursuant to Section 5.08 hereof); 
  
 (vii)  any advance or loan to an officer or employee of a Company made in the ordinary course of such Company’s business, so long as all such advances and loans from all Companies
aggregate not more than the maximum principal sum of $7,500,000 at any time outstanding; 
  
 (viii)  any Permitted Third Party Investment; 
  
 (ix)  Acquisitions permitted pursuant to Section 5.13 hereof; or 
  
 (x)  Permitted Insurance Subsidiary Loans and Investments. 
  
 Section
5.12    
Mergers and Asset Sales.    No Company shall merge or consolidate with any other Person or (except as specifically permitted pursuant to Section 5.13 hereof) sell, lease, transfer, or otherwise dispose
of any of its property or assets outside the ordinary course of business, except that if no Default or Event of Default shall then exist or immediately thereafter shall begin to exist: 
  
 (a)  any Subsidiary may merge or consolidate with (i) Borrower (provided that Borrower shall be the continuing or surviving Person) or (ii) any
one or more Guarantors of Payment, provided that either (A) the continuing or surviving Person shall be a Wholly-Owned Subsidiary that is a Guarantor of Payment, or (B) after giving effect to any merger pursuant to this sub-clause (ii), Borrower
and/or one or more Wholly-Owned Subsidiaries that are Guarantors of Payment shall own not less than the same percentage of the outstanding Voting Power of the continuing or surviving Person as Borrower and/or one or more Wholly-Owned Subsidiaries
that are Guarantors of Payment owned of the merged Subsidiary immediately prior to such merger; 
  
 (b)  any Subsidiary may sell, lease, transfer or otherwise dispose of any of its assets to (i) Borrower, (ii) any Wholly-Owned Subsidiary that is a Guarantor of Payment, or (iii) any Guarantor of Payment, of which Borrower
and/or one or more Wholly-Owned Subsidiaries, which are Guarantors of Payment, shall own not less than the same percentage of Voting Power as Borrower and/or one or more Wholly-Owned Subsidiaries (which are Guarantors of Payment) then own of the
Subsidiary making such sale, lease, transfer or other disposition; 
  
 (c)  in addition to
any merger or consolidation permitted pursuant to subsection (a) above, any Foreign Subsidiary may merge or consolidate with any other Foreign Subsidiary; 
  
 (d)  in addition to any sale, lease, transfer or other disposition permitted pursuant to subsection (b) above, any Foreign Subsidiary may sell,
lease, transfer or otherwise dispose of any of its assets to any one or more Foreign Subsidiaries; and 
  
 (e)  in addition to any sale, lease, transfer or other disposition permitted pursuant to subsections (b) and (d) above, any Company may sell (including any sale in connection with any sale-leaseback transaction), lease,
transfer or otherwise dispose of any of its assets to any Person,

 

 38 







Table of Contents


 
so long as the aggregate fair market value of all such assets sold, leased, transferred or otherwise disposed of by all Companies does not exceed $75,000,000 for the period from the Closing Date
until the last day of the Commitment Period. 
  
 Section 5.13    
Acquisitions.    No Company shall effect an Acquisition unless: 
  
 (a)  no Default or Event of Default then exists or will exist immediately thereafter; 
  
 (b)  the Acquisition is made by (i) Borrower or a Guarantor of Payment and Borrower or such Guarantor of Payment is the surviving entity of such Acquisition (in the case of a merger, consolidation or other combination) or
the Person to be acquired becomes a Guarantor of Payment promptly after such Acquisition (in the case of the acquisition of the stock (or other equity interest) of a Person), or (ii) a Foreign Subsidiary; 
  
 (c)  (i) with respect to any Acquisition where the aggregate Consideration involved equals or exceeds
$10,000,000, Borrower provides to Agent and the Lenders, as early as possible and, in any event, not fewer than five days prior to the date of consummation of such Acquisition, (A) written notice reasonably describing such Acquisition and the
Consideration involved therewith, and (B) historical financial statements of such Person and a pro forma financial statement of the Companies accompanied by a certificate of a Financial Officer of Borrower showing (1) pro forma compliance with
Section 5.07 hereof, both before and after such Acquisition, and (2) that the Leverage Ratio will not exceed 2.75 to 1.00 on a pro forma basis immediately after such Acquisition; and (ii) with respect to any Acquisition where the aggregate
Consideration involved is less than $10,000,000, Borrower provides (A) written notice reasonably describing such Acquisition and the Consideration involved therewith, and (B) a certificate of a Financial Officer of Borrower showing that the Leverage
Ratio will not exceed 2.75 to 1.00 on a pro forma basis immediately after such Acquisition. For purposes of calculating pro forma compliance with Section 5.07 hereof, Borrower shall exclude the value of any assumed operating synergies. 

 
 Section 5.14    
Share Repurchases.    Borrower shall not make any Share Repurchase; provided, however, that, so long as no Default or Event of Default exists or would exist immediately thereafter, Borrower may make
Share Repurchases so long as the aggregate amount all Share Repurchases made since the Closing Date does not exceed $65,000,000 at any time. 
  
 Section 5.15    
Notice.    Borrower shall cause a Financial Officer to promptly notify Agent and the Lenders whenever: 
  
 (a)  any Default or Event of Default may occur hereunder; or 
  
 (b)  any representation or warranty made in Article IV hereof or elsewhere in this Agreement or in any Related Writing may for any reason cease in
any material respect to be true and complete. 
  
 Section 5.16    
Environmental Compliance.    Each Company shall comply in all respects with any and all Environmental Laws including, without limitation, all Environmental Laws in jurisdictions in which any Company
owns or operates a facility or site, arranges for disposal or treatment of hazardous substances, solid waste or other wastes, accepts for transport any

 

 39 







Table of Contents


 
hazardous substances, solid waste or other wastes or holds any interest in real property or otherwise, except where a failure to so comply would not have a Material Adverse Effect. Borrower shall
furnish to the Lenders, promptly after receipt thereof, a copy of any notice any Company may receive from any governmental authority, private Person or otherwise that any material litigation or proceeding pertaining to any environmental, health or
safety matter has been filed or is threatened against such Company, any real property in which such Company holds any interest or any past or present operation of such Company. No Company shall allow the release or disposal of hazardous waste, solid
waste or other wastes on, under or to any real property in which any Company holds any interest or performs any of its operations, in violation of any Environmental Law. As used in this Section, “litigation or proceeding” means any
demand, claim, notice, suit, suit in equity action, administrative action, investigation or inquiry whether brought by any governmental authority, private Person or otherwise. Borrower shall defend, indemnify and hold Agent and the Lenders harmless
against all costs, expenses, claims, damages, penalties and liabilities of every kind or nature whatsoever (including attorneys’ fees) arising out of or resulting from the noncompliance of any Company with any Environmental Law. Such
indemnification shall survive any termination of this Agreement. 
  
 Section 5.17    
Affiliate Transactions.    No Company shall, or shall permit any Subsidiary to, directly or indirectly, enter into or permit to exist any transaction (including, without limitation, the purchase, sale,
lease or exchange of any property or the rendering of any service) with any Affiliate of a Company on terms that are less favorable to such Company or such Subsidiary, as the case may be, than those that might be obtained at the time in a
transaction with a non-Affiliate; provided, however, that the foregoing shall not prohibit (a) the payment of customary and reasonable directors’ fees to directors who are not employees of a Company or any Affiliate of a Company; or (b) any
transaction between a Company and another Company that Borrower reasonably determines in good faith is beneficial to Borrower and its Affiliates as a whole and that is not entered into for the purpose of hindering the exercise by Agent or the
Lenders of their rights or remedies under this Agreement. 
  
 Section 5.18    
Use of Proceeds.    Borrower’s use of the proceeds of the Loans shall be solely for working capital and other general corporate purposes of Borrower and its Subsidiaries, Acquisitions permitted
pursuant to this Agreement, and as support for a commercial paper program instituted by Borrower. 
  
 Section
5.19    
Corporate Names.    Neither Borrower nor any Guarantor of Payment shall change its corporate name, unless, in each case, Borrower shall provide Agent with prompt written notice thereof. 

 
 Section 5.20    
Subsidiary Guaranties.    Each Subsidiary created, acquired or held on or subsequent to the Closing Date, shall immediately become a party to the Guaranty of Payment and the Contribution Agreement and
shall deliver such corporate governance and authorization documents and an opinion of counsel as may be deemed necessary or advisable by Agent and the Required Lenders; provided, however, that (a) the Insurance Subsidiary shall not be required to
execute a Guaranty of Payment, (b) a Foreign Subsidiary shall not be required to execute a Guaranty of Payment, and (c) a Subsidiary shall not be required to execute a Guaranty of Payment if (i) the total assets (based on the book value of such
assets as determined in accordance with GAAP) of such Subsidiary are less than $1,000,000, and (ii) the aggregate

 

 40 







Table of Contents


 
amount of the total assets (based on the book value of such assets as determined in accordance with GAAP) of all such Subsidiaries with total assets less than $1,000,000 does not exceed the
aggregate amount of $5,000,000 at any time. Borrower shall provide Agent and the Lenders with prompt written notice in the event that (x) any Subsidiary (that is not already a Guarantor of Payment) has total assets (based on the book value of such
assets as determined in accordance with GAAP) in excess of $1,000,000, or (y) the aggregate amount of the total assets (based on the book value of such assets as determined in accordance with GAAP) of all Subsidiaries (that are not already
Guarantors of Payment) with total assets less than $1,000,000 exceeds the aggregate amount of $5,000,000. 
  
 Section
5.21    
Pledge of Stock of Foreign Subsidiaries.    Each Company that creates, acquires or holds a Foreign Subsidiary on or subsequent to the Closing Date, shall immediately execute and deliver to Agent a
Pledge Agreement pursuant to which such Company shall pledge to Agent, for the benefit of the Lenders, 65% of the capital stock (or other equity interest) of such Foreign Subsidiary; provided, however, that no Foreign Subsidiary shall be required to
pledge the stock or other equity interest of any other Foreign Subsidiary. 
  
 Section
5.22    
Other Covenants.    In the event that Borrower shall enter into, or shall have entered into, any Material Indebtedness Agreement, wherein the covenants (excluding any such covenants relating to the
maintenance or preservation of real or personal property) contained therein are more restrictive than the covenants set forth herein, then Borrower shall be bound hereunder by such covenants with the same force and effect as if such covenants and
agreements were written herein. 
  
 Section 5.23    
Amendment of Organizational Documents.    Neither Borrower nor any Guarantor of Payment shall amend its Organizational Documents in any manner that would affect the validity or enforceability of any
Loan Document without the prior written consent of Agent and the Required Banks. 
  
 Section
5.24    
Guaranties of Payment; Guaranty Under Material Indebtedness Agreement.    Neither Borrower nor any Domestic Subsidiary shall be or become a Guarantor of any Indebtedness incurred pursuant to any
Material Indebtedness Agreement unless such Company is also a Guarantor of Payment under this Agreement prior to or concurrently therewith. 
  
 Section 5.25    
Pari Passu Ranking.    The Debt shall, and Borrower shall take all necessary action to ensure that the Debt shall, at all times rank at least pari passu in right of payment (to the fullest extent
permitted by law) with all other senior unsecured Indebtedness of Borrower and each Guarantor of Payment. 
  
 Section
5.26    
Supplements to Schedules.    If the information set forth in Schedule 4.01 or Schedule 4.09 hereof becomes incomplete or incorrect, Borrower shall deliver to Agent and the Lenders a new schedule
that contains the accurate information required thereon, and such new schedule shall, upon delivery to Agent and the Lenders, be deemed a part of this Agreement without any further action or amendment hereto. 
 

 41 







Table of Contents


  
 ARTICLE VI. 
  
 
CONDITIONS PRECEDENT 
  
 Section
6.01    
All Credit Events.    The obligation of any Lender to participate in any Credit Event is conditioned, in the case of each such Credit Event, upon the following: 
  
 (a)  all conditions precedent listed in Section 6.02 hereof shall have been satisfied; 
  
 (b)  Borrower shall have submitted a Notice of Loan and otherwise complied with the requirements of Section 2.03
hereof; 
  
 (c)  no Default or Event of Default shall then exist or immediately after such
Credit Event would exist; and 
  
 (d)  each of the representations and warranties contained
in Article IV hereof shall be true and correct with the same force and effect as if made on and as of the date of such Credit Event, except to the extent that any thereof expressly relate to an earlier date. 
  
 Each request by Borrower with respect to any Credit Event shall be deemed to be a representation and warranty by Borrower as of the date
of such request as to the facts specified in subparts (c) and (d) above. 
  
 Section 6.02    
Effectiveness of Agreement.    The obligation of the Lenders to participate in the first Credit Event is subject to the satisfaction of the following conditions: 
  
 (a)  Notes.    Borrower shall have executed and delivered to each Lender its
Revolving Credit Note and shall have executed and delivered to Agent the Swing Line Note. 
  
 (b)  Guaranty of Payment and Contribution Agreement.    The Guarantors of Payment shall have executed and delivered to Agent (i) the Guaranty of Payment and (ii) the Contribution Agreement.

  
 (c)  Pledge Agreement and UCC Financing Statements.    Each
Company that has a Foreign Subsidiary and is not itself a Foreign Subsidiary shall have executed and delivered to Agent a Pledge Agreement pursuant to which such Company shall pledge to Agent, for the benefit of the Lenders, 65% of the capital stock
(or other equity interest) of each such Foreign Subsidiary, and shall have taken all such actions necessary to grant to Agent, for the benefit of the Lenders, a first preferred security interest in or pledge of such stock (or other equity interest).
In addition, each Company that is executing a Pledge Agreement shall authorize Agent to file UCC financing statements, in form and substance satisfactory to Agent, with respect to the collateral pledged under each such Pledge Agreement.

  
 (d)  Officer’s Certificate, Resolutions, Organizational
Documents.    Borrower and each Guarantor of Payment shall have delivered to Agent an officer’s certificate certifying the names of the officers of Borrower or such Guarantor of Payment authorized to sign the Loan
Documents to which each is a party, together with the true signatures of such officers and certified copies of (i) the resolutions of the board of directors of Borrower and each Guarantor of

 

 42 







Table of Contents


 
Payment evidencing approval of the execution and delivery of the Loan Documents and the execution of other Related Writings to which Borrower or such Guarantor of Payment, as the case may be, is
a party, and (ii) the Organizational Documents of Borrower and each Guarantor of Payment. 
  
 (e)  Legal Opinion.    Borrower shall have delivered to Agent an opinion of counsel for Borrower and each Guarantor of Payment, in form and substance satisfactory to Agent and the Lenders.

  
 (f)  Good Standing and Full Force and Effect
Certificates.    Borrower shall have delivered to Agent a good standing certificate or full force and effect certificate, as the case may be, for Borrower and each Guarantor of Payment, issued on or about the Closing Date by
the Secretary of State in the state where Borrower or such Guarantor of Payment is incorporated and in each state in which Borrower or such Guarantor of Payment is qualified as a foreign entity and in which the failure to so qualify would have a
Material Adverse Effect. 
  
 (g)  Closing
Certificate.    Borrower shall have delivered to Agent an officer’s certificate certifying that, as of the Closing Date, (i) all conditions precedent set forth in this Section 6.02 have been satisfied, (ii) no Default or
Event of Default exists nor immediately after the making of the first Loan will exist, and (iii) each of the representations and warranties contained in Article IV hereof are true and correct as of the Closing Date. 
  
 (h)  Closing and Legal Fees; Agent Fee Letter.    Borrower shall have (i) executed
and delivered to Agent, the Agent Fee Letter and paid to Agent, for its sole benefit, the fees set forth therein, (ii) executed and delivered to Agent, for the benefit of the Lenders, the Closing Fee Letter and paid to each of the Lenders the fees
set forth therein, and (iii) paid all legal fees and expenses of Agent in connection with the preparation and negotiation of the Loan Documents. 
  
 (i)  Lien Searches.    With respect to the property owned or leased by Borrower and each Guarantor of Payment, Borrower shall have delivered to Agent (i) the
results of U.C.C. lien searches, satisfactory to Agent and the Lenders; (ii) the results of federal and state tax lien and judicial lien searches, satisfactory to Agent and the Lenders; and (iii) U.C.C. termination statements reflecting termination
of all financing statements previously filed by any other party having a security interest not permitted pursuant to this Agreement. 
  
 (j)  Existing Credit Agreement.    Borrower shall have terminated the Credit Agreement among Borrower, KeyBank National Association, as agent, and the lending
institutions a party thereto, dated as of June 19, 2000, as amended, which termination shall be deemed to have occurred upon payment in full of all of the Indebtedness outstanding thereunder and termination of the commitments established therein.

  
 (k)  No Material Adverse Change.    No material adverse
change, in the opinion of Agent, shall have occurred in the financial condition, operations or prospects of the Companies since March 31, 2001. 
  
 (l)  Miscellaneous.    Borrower shall have provided to Agent and the Lenders such other items and shall have satisfied such other conditions as may be reasonably
required by Agent or the Lenders. 
 

 43 







Table of Contents


  
 ARTICLE VII. 
  
 
EVENTS OF DEFAULT 
  
 Each of the following
shall constitute an Event of Default hereunder: 
  
 Section 7.01    
Payments.    If (a) the interest on any Note or any facility or other fee payable under this Agreement shall not be paid in full when due and payable or within five days thereafter or (b) the principal
of any Note shall not be paid in full punctually when due and payable. 
  
 Section 7.02    
Special Covenants.    If any Company or any Obligor shall fail or omit to perform and observe Sections 5.07, 5.08, 5.09, 5.11, 5.12, 5.13, 5.14, 5.15, 5.18, 5.24, or 5.25 hereof. 

 
 Section 7.03    
Other Covenants.    If any Company or any Obligor shall fail or omit to perform and observe any agreement or other provision (other than those referred to in Sections 7.01, 7.02, or 7.03(a) hereof)
contained or referred to in this Agreement or any Related Writing that is on such Company’s or Obligor’s part, as the case may be, to be complied with, and that Default shall not have been fully corrected within 30 days after the receipt
by Borrower of written notice of such default from the Agent or the Required Lenders (any such notice to be identified as a “notice of default” and to refer specifically to this paragraph). 
  
 Section 7.04    
Representations and Warranties.    If any representation, warranty or statement made in or pursuant to this Agreement or any Related Writing or any other material information furnished by any Company or
any Obligor to the Lenders or any thereof or any other holder of any Note, shall be false or erroneous in any material respect. 
  
 Section 7.05    
Cross Default.    If any Company shall default (a) in the payment of principal, interest or fees due and owing with respect to any Material Indebtedness Agreement beyond any period of grace provided
with respect thereto, or (b) in the performance or observance of any other agreement, term or condition contained in any Material Indebtedness Agreement, if the effect of such default is to allow the acceleration of the maturity of such Indebtedness
or to permit the holder thereof to cause such Indebtedness to become due prior to its stated maturity. 
  
 Section
7.06    
ERISA Default.    The occurrence of one or more ERISA Events that (a) the Required Lenders determine could have a Material Adverse Effect or (b) results in a Lien on any of the assets of any Company, in
excess of $50,000 for all such Liens. 
  
 Section 7.07    
Change in Control.    If any Change in Control shall occur. 
  
 Section 7.08    
Money Judgment.    A final judgment or order for the payment of money shall be rendered against any Company or any Obligor by a court of competent jurisdiction, that remains unpaid or unstayed and
undischarged for a period (during which execution shall not be effectively stayed) of 30 days after the date on which the right to appeal has expired, provided that the aggregate of all such judgments for all such Companies and Obligors shall exceed
$10,000,000. 
 

 44 







Table of Contents


  
 Section 7.09    
Validity of Loan Documents.    (a) Any material provision, in the reasonable opinion of Agent, of any Loan Document shall at any time for any reason cease to be valid and binding and enforceable against
Borrower or any Guarantor of Payment; (b) the validity, binding effect or enforceability of any Loan Document against Borrower or any Guarantor of Payment shall be contested by any Company; (c) Borrower or any Guarantor of Payment shall deny that it
has any or further liability or obligation thereunder; or (d) any Loan Document shall be terminated, invalidated or set aside, or be declared ineffective or inoperative or in any way cease to give or provide to Agent and the Lenders the benefits
purported to be created thereby. 
  
 Section 7.10    
Solvency.    If any Company (other than a Subsidiary with total assets (based on the book value of such assets as determined in accordance with GAAP) less than $1,000,000) shall (a) except as permitted
pursuant to Section 5.12 hereof, discontinue business, (b) generally not pay its debts as such debts become due, (c) make a general assignment for the benefit of creditors, (d) apply for or consent to the appointment of a receiver, a custodian, a
trustee, an interim trustee or liquidator of all or a substantial part of its assets, (e) be adjudicated a debtor or have entered against it an order for relief under Title 11 of the United States Code, as the same may be amended from time to time,
(f) file a voluntary petition in bankruptcy, or have an involuntary proceeding filed against it and the same shall continue undismissed for a period of 60 days from commencement of such proceeding or case, or file a petition or an answer seeking
reorganization or an arrangement with creditors or seeking to take advantage of any other law (whether federal or state) relating to relief of debtors, or admit (by answer, by default or otherwise) the material allegations of a petition filed
against it in any bankruptcy, reorganization, insolvency or other proceeding (whether federal or state) relating to relief of debtors, (g) suffer or permit to continue unstayed and in effect for 60 consecutive days any judgment, decree or order
entered by a court of competent jurisdiction, that approves a petition seeking its reorganization or appoints a receiver, custodian, trustee, interim trustee or liquidator of all or a substantial part of its assets, or (h) take, or omit to take, any
action in order thereby to effect any of the foregoing. 
  
 ARTICLE VIII. 
  
 
REMEDIES UPON DEFAULT 
  
 Section
8.01    
Optional Defaults.    If any Event of Default referred to in Section 7.01, Section 7.02, Section 7.03, Section 7.04, Section 7.05, Section 7.06, Section 7.07, Section 7.08 or Section 7.09 hereof shall
occur, Agent may, with the consent of the Required Lenders, and shall, at the request of the Required Lenders, give written notice to Borrower, to: 
  
 (a)  terminate the Commitment and the credits hereby established, if not previously terminated, and, immediately upon such election, the
obligations of the Lenders, and each thereof, to make any further Loan and the obligation of Agent to make any Swing Loan hereunder immediately shall be terminated, and/or 
  
 (b)  accelerate the maturity of all of the Debt (if the Debt is not already due and payable), whereupon all of the Debt shall become and
thereafter be immediately due and payable

 

 45 







Table of Contents


 
in full without any presentment or demand and without any further or other notice of any kind, all of which are hereby waived by Borrower. 
  

Section 8.02    
Automatic Defaults.    If any Event of Default referred to in Section 7.10 hereof shall occur: 
  
 (a)  all of the Commitment and the credits hereby established shall automatically and immediately terminate, if not previously terminated, and no Lender thereafter shall be under any
obligation to grant any further Loan, nor shall Agent be obligated to make any Swing Loan, hereunder, and 
  
 (b)  the outstanding principal, interest and any other amounts on all of the Notes, and all of the other Debt, shall thereupon become and thereafter be immediately due and payable in full (if the Debt is not already due and
payable), all without any presentment, demand or notice of any kind, which are hereby waived by Borrower. 
  
 Section
8.03    
Offsets.    In addition to the rights and remedies of Agent and the Lenders provided elsewhere in this Agreement or in any other Loan Document, or otherwise provided in law or equity, if there shall
occur or exist any Event of Default referred to in Section 7.10 hereof or if the maturity of the Notes is accelerated pursuant to Section 8.01 or Section 8.02 hereof, Agent and each Lender (and such Lender’s affiliates) shall have the right at
any time to set off against, and to appropriate and apply toward the payment of, any and all Debt then owing by Borrower to Agent or that Lender (including, without limitation, any participation purchased or to be purchased pursuant to Section
2.02(b) or Section 8.04 hereof), whether or not the same shall then have matured, any and all deposit balances and all other indebtedness then held or owing by Agent or that Lender (and such Lender’s affiliates) to or for the credit or account
of Borrower or any Guarantor of Payment, all without notice to or demand upon Borrower or any other Person, all such notices and demands being hereby expressly waived by Borrower. 
  
 Section 8.04    
Equalization Provision.    Each Lender agrees with the other Lenders that if it, at any time, shall obtain any Advantage over the other Lenders or any thereof in respect of the Debt (except as to Swing
Loans and except under Article III hereof), it shall purchase from the other Lenders, for cash and at par, such additional participation in the Debt as shall be necessary to nullify the Advantage. If any such Advantage resulting in the purchase of
an additional participation as aforesaid shall be recovered in whole or in part from the Lender receiving the Advantage, each such purchase shall be rescinded, and the purchase price restored (but without interest unless the Lender receiving the
Advantage is required to pay interest on the Advantage to the Person recovering the Advantage from such Lender) ratably to the extent of the recovery. Each Lender further agrees with the other Lenders that if it at any time shall receive any payment
for or on behalf of Borrower on any indebtedness owing by Borrower to that Lender by reason of offset of any deposit or other indebtedness, it will apply such payment first to any and all Debt owing by Borrower to that Lender (including, without
limitation, any participation purchased or to be purchased pursuant to this Section or any other Section of this Agreement). Borrower agrees that any Lender so purchasing a participation from the other Lenders or any thereof pursuant to this Section
may exercise all its rights of payment (including

 

 46 







Table of Contents


 
the right of set-off) with respect to such participation as fully as if such Lender was a direct creditor of Borrower in the amount of such participation. 
  
 ARTICLE IX. 
  
 
THE AGENT 
  
 The Lenders authorize KeyBank National
Association and KeyBank National Association hereby agrees to act as agent for the Lenders in respect of this Agreement upon the terms and conditions set forth elsewhere in this Agreement, and upon the following terms and conditions: 

 
 Section 9.01    
Appointment and Authorization.    Each Lender hereby irrevocably appoints and authorizes Agent to take such action as agent on its behalf and to exercise such powers hereunder as are delegated to Agent
by the terms hereof, together with such powers as are reasonably incidental thereto. Neither Agent nor any of its affiliates, directors, officers, attorneys or employees shall be liable for any action taken or omitted to be taken by it or them
hereunder or in connection herewith, except for its or their own gross negligence or willful misconduct. 
  
 Section
9.02    
Note Holders.    Agent may treat the payee of any Note as the holder thereof until written notice of transfer shall have been filed with it, signed by such payee and in form satisfactory to Agent.

  
 Section 9.03    
Consultation With Counsel.    Agent may consult with legal counsel selected by it and shall not be liable for any action taken or suffered in good faith by it in accordance with the opinion of such
counsel. 
  
 Section 9.04    
Documents.    Agent shall not be under any duty to examine into or pass upon the validity, effectiveness, genuineness or value of any Loan Documents or any other Related Writing furnished pursuant
hereto or in connection herewith or the value of any collateral obtained hereunder, and Agent shall be entitled to assume that the same are valid, effective and genuine and what they purport to be. 
  
 Section 9.05    
Agent and Affiliates.    With respect to the Loans, Agent shall have the same rights and powers hereunder as any other Lender and may exercise the same as though it were not Agent, and Agent and its
affiliates may accept deposits from, lend money to and generally engage in any kind of business with any Company or any affiliate thereof. 
  
 Section 9.06    
Knowledge of Default.    It is expressly understood and agreed that Agent shall be entitled to assume that no Default or Event of Default has occurred, unless Agent has been notified by a Lender in
writing that such Lender believes that a Default or Event of Default has occurred and is continuing and specifying the nature thereof. 
  
 Section 9.07    
Action by Agent.    Subject to the other terms and conditions hereof, so long as Agent shall be entitled, pursuant to Section 9.06 hereof, to assume that no Default or Event of Default shall have
occurred and be continuing, Agent shall be entitled to use its

 

 47 







Table of Contents


 
discretion with respect to exercising or refraining from exercising any rights that may be vested in it by, or with respect to taking or refraining from taking any action or actions that it may
be able to take under or in respect of, this Agreement. Agent shall incur no liability under or in respect of this Agreement by acting upon any notice, certificate, warranty or other paper or instrument believed by it to be genuine or authentic or
to be signed by the proper party or parties, or with respect to anything that it may do or refrain from doing in the reasonable exercise of its judgment, or that may seem to it to be necessary or desirable in the premises. 
  
 Section 9.08    
Notices, Default, Etc.    In the event that Agent shall have acquired actual knowledge of any Default or Event of Default, Agent shall promptly notify the Lenders and shall take such action and assert
such rights under this Agreement as the Required Lenders shall direct and Agent shall inform the other Lenders in writing of the action taken. Subject to the other terms and conditions hereof, Agent may take such action and assert such rights as it
deems to be advisable, in its discretion, for the protection of the interests of the holders of the Notes. 
  
 Section 9.09    
Indemnification of Agent.    The Lenders agree to indemnify Agent (to the extent not reimbursed by Borrower) ratably, according to their respective Commitment Percentages, from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever that may be imposed on, incurred by or asserted against Agent in its capacity as agent in any way
relating to or arising out of this Agreement or any Loan Document or any action taken or omitted by Agent with respect to this Agreement or any Loan Document, provided that no Lender shall be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses (including attorneys’ fees) or disbursements resulting from Agent’s gross negligence, willful misconduct or from any action taken or omitted by Agent in any capacity
other than as agent under this Agreement. 
  
 Section 9.10    
Successor Agent.    Agent may resign as agent hereunder by giving not fewer than 30 days prior written notice to Borrower and the Lenders. If Agent shall resign under this Agreement, then either (a)
the Required Lenders shall appoint from among the Lenders a successor agent for the Lenders (with the consent of Borrower so long as an Event of Default has not occurred and which consent shall not be unreasonably withheld), or (b) if a successor
agent shall not be so appointed and approved within the 30 day period following Agent’s notice to the Lenders of its resignation, then Agent shall appoint a successor agent that shall serve as agent until such time as the Required Lenders
appoint a successor agent. Upon its appointment, such successor agent shall succeed to the rights, powers and duties as agent, and the term “Agent” shall mean such successor effective upon its appointment, and the former agent’s
rights, powers and duties as agent shall be terminated without any other or further act or deed on the part of such former agent or any of the parties to this Agreement. 
  
 Section 9.11    
Other Agent.    Neither the Documentation Agent nor any Co-Agent shall have any duties or responsibilities hereunder in their respective agency capacities. 
 

 48 







Table of Contents


  
 ARTICLE X. 
  
 
MISCELLANEOUS 
  
 Section 10.01    
Lenders’ Independent Investigation.    Each Lender, by its signature to this Agreement, acknowledges and agrees that Agent has made no representation or warranty, express or implied, with respect
to the creditworthiness, financial condition, or any other condition of any Company or with respect to the statements contained in any information memorandum furnished in connection herewith or in any other oral or written communication between
Agent and such Lender. Each Lender represents that it has made and shall continue to make its own independent investigation of the creditworthiness, financial condition and affairs of the Companies in connection with the extension of credit
hereunder, and agrees that Agent has no duty or responsibility, either initially or on a continuing basis, to provide any Lender with any credit or other information with respect thereto (other than such notices as may be expressly required to be
given by Agent to the Lenders hereunder), whether coming into its possession before the granting of the first Loans hereunder or at any time or times thereafter. 
  
 Section 10.02    
No Waiver; Cumulative Remedies.    No omission or course of dealing on the part of Agent, any Lender or the holder of any Note in exercising any right, power or remedy hereunder or under any of the
Loan Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy hereunder or under any
of the Loan Documents. The remedies herein provided are cumulative and in addition to any other rights, powers or privileges held by operation of law, by contract or otherwise. 
  
 Section 10.03    
Amendments, Consents.    No amendment, modification, termination, or waiver of any provision of any Loan Document nor consent to any variance therefrom, shall be effective unless the same shall be in
writing and signed by the Required Lenders and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. Anything herein to the contrary notwithstanding, unanimous consent of the
Lenders affected thereby shall be required with respect to (a) any increase in the Commitment hereunder, (b) the extension of maturity of the Notes, the payment date of interest or principal thereunder, or the payment of facility or other fees or
amounts payable hereunder, (c) any reduction in the rate of interest on the Notes, or in any amount of principal or interest due on any Note, or the payment of facility or other fees hereunder or any change in the manner of pro rata application of
any payments made by Borrower to the Lenders hereunder, (d) any change in any percentage voting requirement, voting rights, or the Required Lenders definition in this Agreement, (e) the release of any collateral securing any part of the Debt or the
release of any Guarantor of Payment, except for the release of any collateral or any Guarantor of Payment in connection with a transaction expressly permitted pursuant to this Agreement, or (f) any amendment to this Section 10.03 or Section 8.04
hereof. Notice of amendments or consents ratified by the Lenders hereunder shall immediately be forwarded by Borrower to all Lenders. Each Lender or other holder of a Note shall be bound by any amendment, waiver or consent obtained as authorized by
this Section, regardless of its failure to agree thereto. In addition, Section 10.13 hereof may not be amended without the prior written consent of any Designating Lender, as defined in Section 10.13 hereof, affected thereby. 
 

 49 







Table of Contents


  
 Section 10.04    
Notices.    All notices, requests, demands and other communications provided for hereunder shall be in writing addressed to each party at the address specified on the signature pages of this Agreement,
or, as to each party, at such other address as shall be designated by such party in a written notice to each of the other parties. All notices, statements, requests, demands and other communications provided for hereunder shall be deemed delivered
(a) upon receipt when delivered in person, (b) upon receipt of electronic confirmation of error free transmission when sent by facsimile or other electronic means, (c) upon receipt when sent by nationally (or internationally, as the case may be)
recognized overnight delivery service, or (d) 48 hours after being deposited in the mail when sent by first class mail, registered mail, or certified mail. 
  
 Section 10.05    
Costs, Expenses and Taxes.    Borrower agrees to pay on demand all costs and expenses of Agent, including, but not limited to, (a) syndication, administration, travel and out-of-pocket expenses,
including but not limited to attorneys’ fees and expenses, of Agent in connection with the preparation, negotiation and closing of the Loan Documents and the administration of the Loan Documents, the collection and disbursement of all funds
hereunder and the other instruments and documents to be delivered hereunder, (b) extraordinary expenses of Agent in connection with the administration of the Loan Documents and the other instruments and documents to be delivered hereunder, and (c)
the reasonable fees and out-of-pocket expenses of special counsel for Agent, with respect to the foregoing, and of local counsel, if any, who may be retained by said special counsel with respect thereto. Borrower also agrees to pay on demand all
costs and expenses of Agent and the Lenders, including reasonable attorneys’ fees, in connection with the restructuring or enforcement of the Debt, this Agreement or any Related Writing. In addition, Borrower shall pay any and all stamp and
other taxes and fees payable or determined to be payable in connection with the execution and delivery of the Loan Documents, and the other instruments and documents to be delivered hereunder, and agrees to hold Agent and each Lender harmless from
and against any and all liabilities with respect to or resulting from any delay in paying or omission to pay such taxes or fees. 
  
 Section 10.06    
Indemnification.    Borrower agrees to defend, indemnify and hold harmless Agent and the Lenders (and their respective affiliates, officers, directors, attorneys, agents and employees) from and against
any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including attorneys’ fees) or disbursements of any kind or nature whatsoever that may be imposed on, incurred by or asserted against
Agent or any Lender in connection with any investigative, administrative or judicial proceeding (whether or not such Lender or Agent shall be designated a party thereto) or any other claim by any Person relating to or arising out of any Loan
Document or any actual or proposed use of proceeds of the Loans or any of the Debt, or any activities of any Company or any Obligor or any of their respective Affiliates; provided that no Lender nor Agent shall have the right to be indemnified under
this Section for its own gross negligence or willful misconduct as determined by a court of competent jurisdiction. All obligations provided for in this Section 10.06 shall survive any termination of this Agreement. 
  
 Section 10.07    
Obligations Several; No Fiduciary Obligations.    The obligations of the Lenders hereunder are several and not joint. Nothing contained in this Agreement and no action taken by Agent or the Lenders
pursuant hereto shall be deemed to constitute the Lenders a partnership, association, joint venture or other entity. No default by any Lender hereunder shall

 

 50 







Table of Contents


 
excuse the other Lenders from any obligation under this Agreement; but no Lender shall have or acquire any additional obligation of any kind by reason of such default. The relationship among
Borrower and the Lenders with respect to the Loan Documents and the Related Writings is and shall be solely that of debtor and creditors, respectively, and neither Agent nor any Lender shall have any fiduciary obligation toward Borrower with respect
to any such documents or the transactions contemplated thereby. 
  
 Section 10.08    
Execution in Counterparts.    This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall
be deemed to be an original and all of which taken together shall constitute but one and the same agreement. 
  
 Section 10.09    
Binding Effect; Borrower’s Assignment.    This Agreement shall become effective when it shall have been executed by Borrower, Agent and by each Lender and thereafter shall be binding upon and
inure to the benefit of Borrower, Agent and each of the Lenders and their respective successors and assigns, except that Borrower shall not have the right to assign its rights hereunder or any interest herein without the prior written consent of
Agent and all of the Lenders. 
  
 Section 10.10    
Assignments. 
  
 (a)  Each Lender shall have the right, in accordance with the
terms and conditions of this Section 10.10, at any time or times to assign to one or more commercial banks, finance companies, insurance companies or other financial institution or fund which, in each case, in the ordinary course of business extends
credit of the type contemplated herein and whose becoming an assignee would not constitute a prohibited transaction under Section 4975 of ERISA, without recourse, all or a percentage of all of such Lender’s Commitment, all Loans made by such
Lender, such Lender’s Notes, and such Lender’s interest in any participation purchased pursuant to Section 2.02(b) or Section 8.04 hereof. 
  
 (b)  No assignment may be consummated pursuant to this Section 10.10 without the prior written consent of Borrower and Agent (other than an assignment by any Lender to any affiliate of such
Lender which affiliate is either wholly-owned by such Lender or is wholly-owned by a Person that wholly owns, either directly or indirectly, such Lender), which consent of Borrower and Agent shall not be unreasonably withheld; provided, however,
that, Borrower’s consent shall not be required if, (i) such assignment is to another Lender, or (ii) at the time of the proposed assignment, any Default or Event of Default shall then exist. Anything herein to the contrary notwithstanding, any
Lender may at any time make a collateral assignment of all or any portion of its rights under the Loan Documents to a Federal Reserve Bank, and no such assignment shall release such assigning Lender from its obligations hereunder. 

 
 (c)  Each assignment made pursuant to this Section 10.10 shall be in a minimum amount of the lesser of $5,000,000 of
the assignor’s Commitment and interest herein or the entire amount of the assignor’s Commitment and interest herein. 
  
 (d)  Unless an assignment made pursuant to this Section 10.10 shall be to an affiliate of the assignor or the assignment shall be due to merger of the assignor or for regulatory

 

 51 







Table of Contents


 
purposes, either the assignor or the assignee shall remit to Agent, for its own account, an administrative fee of $3,500. 
  
 (e)  Unless an assignment made pursuant to this Section 10.10 shall be due to merger of the assignor or a collateral assignment for regulatory purposes, the
assignor shall (i) cause the assignee to execute and deliver to Borrower and Agent an Assignment Agreement and (ii) execute and deliver, or cause the assignee to execute and deliver, as the case may be, to Agent such additional amendments,
assurances and other writings as Agent may reasonably require. 
  
 (f)  If an assignment made pursuant to
this Section 10.10 is to be made to an assignee that is organized under the laws of any jurisdiction other than the United States or any state thereof, the assignor Lender shall cause such assignee, at least five Business Days prior to the effective
date of such assignment, (i) to represent to the assignor Lender (for the benefit of the assignor Lender, Agent and Borrower) that under applicable law and treaties no taxes will be required to be withheld by Agent, Borrower or the assignor with
respect to any payments to be made to such assignee in respect of the Loans hereunder, (ii) to furnish to the assignor (and, in the case of any assignee registered in the Register (as defined below), Agent and Borrower) either (A) U.S. Internal
Revenue Service Form W-8ECI or U.S. Internal Revenue Service Form W-8BEN or (B) United States Internal Revenue Service Form W–8 or W–9, as applicable (wherein such assignee claims entitlement to complete exemption from U.S. federal
withholding tax on all interest payments hereunder), and (iii) to agree (for the benefit of the assignor, Agent and Borrower) to provide the assignor Lender (and, in the case of any assignee registered in the Register, Agent and Borrower) a new Form
W-8ECI or Form W-8BEN or Form W–8 or W–9, as applicable, upon the expiration or obsolescence of any previously delivered form and comparable statements in accordance with applicable U.S. laws and regulations and amendments duly executed
and completed by such assignee, and to comply from time to time with all applicable U.S. laws and regulations with regard to such withholding tax exemption. 
  
 (g)  Upon satisfaction of all applicable requirements specified in subparts (a) though (f) above, Borrower shall execute and deliver (i) to Agent, the assignor and the assignee, any consent
or release (of all or a portion of the obligations of the assignor) required to be delivered by Borrower in connection with the Assignment Agreement, and (ii) to the assignee or the assignor (if applicable), an appropriate Note or Notes. After
delivery of the new Note or Notes, the assignor’s Note or Notes being replaced shall be returned to Borrower marked “replaced”. 
  
 (h)  Upon satisfaction of all applicable requirements specified in subparts (a) though (f) above, and any other condition contained in this Section 10.10, (i) the assignee shall become and
thereafter be deemed to be a “Lender” for the purposes of this Agreement, (ii) the Assignor shall be released from its obligations hereunder to the extent its interest has been assigned, (iii) in the event that the assignor’s entire
interest has been assigned, the assignor shall cease to be and thereafter shall no longer be deemed to be a “Lender” and (iv) the signature pages hereto and Schedule 1 hereto shall be automatically amended, without further action, to
reflect the result of any such assignment. 
  
 (i)  Agent shall maintain at the address for notices
referred to in Section 10.04 hereof a copy of each Assignment Agreement delivered to it and a register (the “Register”) for the
 
 

 52 







Table of Contents


  
 recordation of the names and addresses of the Lenders and the Commitment of, and principal amount of the
Loans owing to, each Lender from time to time. The entries in the Register shall be conclusive, in the absence of manifest error, and Borrower, Agent and the Lenders may treat each financial institution whose name is recorded in the Register as the
owner of the Loan recorded therein for all purposes of this Agreement. The Register shall be available for inspection by Borrower or any Lender at any reasonable time and from time to time upon reasonable prior notice. 
  
 Section 10.11    
Participations. 
  
 (a)  Each Lender shall have the right at any time or times,
without the consent of Agent or Borrower, to sell one or more participations or sub-participations to a financial institution or other “accredited investor” (as defined in SEC Regulation D), as the case may be, in all or any part of such
Lender’s Commitment, such Lender’s Commitment Percentage, any Loan made by such Lender, any Note delivered to such Lender pursuant to this Agreement, and such Lender’s interest in any participation, if any, purchased pursuant to
Section 2.02(b), Section 8.04 or this Section 10.11. 
  
 (b)  The provisions of Article III and Section
10.06 shall inure to the benefit of each purchaser of a participation or sub-participation and Agent shall continue to distribute payments pursuant to this Agreement as if no participation has been sold. 
  
 (c)  If any Lender shall sell any participation or sub-participation pursuant to this Section 10.11, such Lender shall, as
between itself and the purchaser, retain all of its rights (including, without limitation, rights to enforce against Borrower the Loan Documents and the Related Writings) and duties pursuant to the Loan Documents and the Related Writings, including,
without limitation, such Lender’s right to approve any waiver, consent or amendment pursuant to Section 10.03, except if and to the extent that any such waiver, consent or amendment would: 
  

(i)  reduce any fee or commission allocated to the participation or sub-participation, as the case may be, 
  
 (ii)  reduce the amount of any principal payment on any Loan allocated to the participation or
sub-participation, as the case may be, or reduce the principal amount of any Loan so allocated or the rate of interest payable thereon, or 
  
 (iii)  extend the time for payment of any amount allocated to the participation or sub-participation, as the case may be. 
  
 (d)  No participation or sub-participation shall operate as a delegation of any duty of the seller thereof. 
  

(e)  Under no circumstance shall any participation or sub-participation be deemed a novation in respect of all or any part of the seller’s obligations
pursuant to this Agreement. 
 

 53 







Table of Contents


  
 Section 10.12    
Severability of Provisions; Captions; Attachments.    Any provision of this Agreement that 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 or affecting the validity or enforceability of such provision in any other jurisdiction. The several captions to Sections and subsections herein are
inserted for convenience only and shall be ignored in interpreting the provisions of this Agreement. Each schedule or exhibit attached to this Agreement shall be incorporated herein an shall be deemed to be a part hereof. 
  
 Section 10.13    
Designation. 
  
 (a) Notwithstanding anything in this Agreement to the contrary, any
Lender (a “Designating Lender”) may grant to one or more special purpose funding vehicles (each an “SPV”), identified in writing from time to time by such Designating Lender to Agent and Borrower, the option to
provide to Borrower all or any part of any Loan that such Designating Lender would otherwise be obligated to make to Borrower pursuant to this Agreement; provided that (i) nothing in this Section shall constitute a commitment by any SPV to make any
Loan, and (ii) if an SPV designated by a Designating Lender to make Loans elects not to exercise such option or otherwise fails to provide all or any part of such Loan, such Designating Lender shall still be obligated to make such Loan pursuant to
the terms hereof. The making of a Loan by an SPV hereunder shall reduce the availability under the Commitment of the Designating Lender to the same extent, and as if, such Loan were made by such Designating Lender. 
  
 (b) As to any Loans or portion thereof made by an SPV, each such SPV shall have all of the rights that a Lender making such Loans or
portion thereof would have under this Agreement; provided, however, that each SPV shall have granted its Designating Lender an irrevocable power of attorney to deliver and receive all communications and notices under this Agreement and any other
Loan Document and to exercise, in its reasonable discretion, on behalf of such SPV, all of such SPV’s voting rights under this Agreement. No additional Note shall be required to evidence the Loans or portion thereof made by an SPV and the
Designating Lender shall be deemed to hold its Note as agent for such SPV to the extent of the Loans or portion thereof funded by such SPV. In addition, any payments for the account of any SPV shall be paid to its respective Designating Lender as
agent for such SPV. 
  
 (c) Agent, Borrower and the Lenders agree that no SPV shall be liable for an indemnity or
payment under this Agreement for which a Lender would otherwise be liable and the Designating Lender shall remain liable for its Commitment Percentage of such indemnity or payment to the extent such Designating Lender would otherwise be liable. In
furtherance of the foregoing, Agent, Borrower and each of the Lenders hereby agree (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 of the
outstanding commercial paper or other senior indebtedness of any SPV, none of Agent, Borrower or any Lender shall institute against, or join any other Person in instituting against, such SPV any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceeding under the laws of the United States or any State thereof. 
  
 (d) In addition, notwithstanding
anything to the contrary contained in this Section 10.13, or otherwise in this Agreement, any SPV may (i) at any time and without paying any 
 

 54 







Table of Contents


 
processing fee therefor, assign (or grant a participation in) all or a portion of its interest in any Loans to its Designating Lender or to any financial institution providing liquidity and/or
credit support to or for the account of such SPV to support the funding or maintenance of Loans, and (ii) disclose on a confidential basis any non-public information relating to the Loans made by such SPV to any rating agency, commercial paper
dealer or provider of any surety, guarantee or credit or liquidity enhancements to such SPV. This Section 10.13 may not be amended without the prior written consent of any Designating Lender affected thereby. 
  
 Section 10.14    
Judgment Currency.    If Agent, on behalf of the Lenders, obtains a judgment or judgments against Borrower in an Alternate Currency, the obligations of Borrower in respect of any sum adjudged to be due
to Agent or the Lenders hereunder or under the Notes (the “Judgment Amount”) shall be discharged only to the extent that, on the Business Day following receipt by Agent of the Judgment Amount in the Alternate Currency, Agent, in
accordance with normal banking procedures, purchases Dollars with the Judgment Amount in such Alternate Currency. If the amount of Dollars so purchased is less than the amount of Dollars that could have been purchased with the Judgment Amount on the
date or dates the Judgment Amount (excluding the portion of the Judgment Amount which has accrued as a result of the failure of Borrower to pay the sum originally due hereunder or under the Notes when it was originally due hereunder or under the
Notes) was originally due and owing (the “Original Due Date”) to Agent or the Lenders hereunder or under the Notes (the “Loss”), Borrower agrees as a separate obligation and notwithstanding any such judgment, to
indemnify Agent or such Lender, as the case may be, against the Loss, and if the amount of Dollars so purchased exceeds the amount of Dollars that could have been purchased with the Judgment Amount on the Original Due Date, Agent or such Lender
agrees to remit such excess to Borrower. 
  
 Section 10.15    
Investment Purpose.    Each of the Lenders represents and warrants to Borrower that it is entering into this Agreement with the present intention of acquiring any Note issued pursuant hereto for
investment purposes only and not for the purpose of distribution or resale, it being understood, however, that each Lender shall at all times retain full control over the disposition of its assets. 
  
 Section 10.16    
Entire Agreement.    This Agreement, any Note and any other Loan Document or other agreement, document or instrument attached hereto or executed on or as of the Closing Date integrate all the terms and
conditions mentioned herein or incidental hereto and supersede all oral representations and negotiations and prior writings with respect to the subject matter hereof. 
  
 Section 10.17    
Governing Law; Submission to Jurisdiction.    This Agreement, each of the Notes and any Related Writing shall be governed by and construed in accordance with the laws of the State of Ohio and the
respective rights and obligations of Borrower and the Lenders shall be governed by Ohio law, without regard to principles of conflict of laws. Borrower hereby irrevocably submits to the non–exclusive jurisdiction of any Ohio state or federal
court sitting in Cleveland, Ohio, over any action or proceeding arising out of or relating to this Agreement, the Debt or any Related Writing, and Borrower hereby irrevocably agrees that all claims in respect of such action or proceeding may be
heard and determined in such Ohio state or federal court. Borrower, on behalf of itself and its Subsidiaries, hereby irrevocably waives, to the fullest extent permitted by law, any objection it may now or hereafter have to the laying of venue in any
action

 

 55 







Table of Contents


 
or proceeding in any such court as well as any right it may now or hereafter have to remove such action or proceeding, once commenced, to another court on the grounds of FORUM NON CONVENIENS or
otherwise. Borrower agrees that a final, nonappealable judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 
  
 Section 10.18    
Legal Representation of Parties.    The Loan Documents were negotiated by the parties with the benefit of legal representation and any rule of construction or interpretation otherwise requiring this
Agreement or any other Loan Document to be construed or interpreted against any party shall not apply to any construction or interpretation hereof or thereof. 
  
 Section 10.19    
Source of Funds.    Each of the Lenders hereby severally (and not jointly) represents to Borrower that no part of the funds to be used by such Lender to fund the Loans hereunder from time to time
constitutes (a) assets allocated to any separate account maintained by such Lender in which any employee benefit plan (or its related trust) has any interest nor (b) any other assets of any employee benefit plan. As used in this Section, the terms
“employee benefit plan” and “separate account” shall have the respective meanings assigned to such terms in Section 3 of ERISA. 
  
 [Remainder of page intentionally left blank] 
 

 56 







Table of Contents


  
 Section 10.20    
Jury Trial Waiver.    BORROWER, AGENT AND EACH OF THE LENDERS WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG BORROWER, AGENT
AND THE LENDERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AGREEMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED
IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO. 
  
 IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the date first written above. 
  
 
	 
	 Address:    5960 Heisley Road
 Mentor, Ohio 44060
 Attn:    Chief Financial Officer
 	  	 STERIS CORPORATION
  
 By:                                     
                                        
             
 
	  	  	       Les C. Vinney, President and Chief
       Executive Officer
 
	 
	  	  	 By:                                     
                                        
             
 
	  	  	       Laurie Brlas, Senior Vice President
       and Chief Financial Officer
 
	 
	 Address:    127 Public Square
           Cleveland, Ohio 44114-1306
           Attn:    Large Corporate Banking Division
 	  	 KEYBANK NATIONAL ASSOCIATION,
 as Agent, Lead Arranger, Book Runner and
as
a Lender
 
	 
	  	  	 By:                                     
                                        
             
 
	 
	  	  	 Name:                                    
                                        
        
 
	 
	  	  	 Title:                                    
                                        
           
 
	 
	 Address:                                   
                                        
                
                                      
                                        
               
                                      
                                        
               
  
 Attn:                                    
                             
 	  	 LASALLE BANK NATIONAL
 ASSOCIATION, as Documentation Agent


and as a Lender
 
	 
	  	  	 By:                                     
                                        
             
 
	 
	  	  	 Name:                                    
                                        
        
 
	 
	  	  	 Title:                                    
                                        
           
 

 
  
  
  
  
 

 Signature Page 1 of 3 
 to 

Credit Agreement for STERIS Corporation 







Table of Contents


 
	 Address:
 	 	                                      
                       
 	  	  	 	 HARRIS TRUST AND SAVINGS BANK,
 
	  	 	                                      
                       
 	  	  	 	 as a Co-Agent and as a Lender
 
	  	 	                                      
                       
 	  	  	 	  
	  	 	 Attn:                                    
              
 	  	  	 	 By:                                     
                                        
                   
 
	  	 	  	  	  	 	 Name:                                    
                                        
              
 
	  	 	  	  	  	 	 Title:                                    
                                        
                
 
	  	 	  	  	  	 	  
	 Address:
 	 	                                      
                       
 	  	  	 	 NATIONAL CITY BANK, as a Co-Agent
 
	  	 	                                      
                       
 	  	  	 	 and as a Lender
 
	  	 	                                      
                       
 	  	  	 	  
	  	 	 Attn:                                    
              
 	  	  	 	 By:                                     
                                        
                   
 
	  	 	  	  	  	 	 Name:                                    
                                        
              
 
	  	 	  	  	  	 	 Title:                                    
                                        
                
 
	  	 	  	  	  	 	  
	 Address:
 	 	                                      
                       
 	  	  	 	 THE BANK OF NEW YORK, as a Co-
 
	  	 	                                      
                       
 	  	  	 	 Agent and as a Lender
 
	  	 	                                      
                       
 	  	  	 	  
	  	 	 Attn:                                    
              
 	  	  	 	 By:                                     
                                        
                   
 
	  	 	  	  	  	 	 Name:                                    
                                        
              
 
	  	 	  	  	  	 	 Title:                                    
                                        
                
 
	  	 	  	  	  	 	  
	 Address:
 	 	                                      
                       
 	  	  	 	 PNC BANK, NATIONAL ASSOCIATION,
 
	  	 	                                      
                       
 	  	  	 	 as a Co-Agent and as a Lender
 
	  	 	                                      
                       
 	  	  	 	  
	  	 	 Attn:                                    
              
 	  	  	 	 By:                                     
                                        
                   
 
	  	 	  	  	  	 	 Name:                                    
                                        
              
 
	  	 	  	  	  	 	 Title:                                    
                                        
                
 
	  	 	  	  	  	 	  
	 Address:
 	 	                                      
                       
 	  	  	 	 BANK ONE, NA
 
	  	 	                                      
                       
 	  	  	 	  
	  	 	                                      
                       
 	  	  	 	 By:                                     
                                        
                   
 
	  	 	 Attn:                                    
              
 	  	  	 	 Name:                                    
                                        
              
 
	  	 	  	  	  	 	 Title:                                    
                                        
                
 
	  	 	  	  	  	 	  
	 Address:
 	 	                                      
                       
 	  	  	 	 FIRSTAR BANK, N.A.
 
	  	 	                                      
                       
 	  	  	 	  
	  	 	                                      
                       
 	  	  	 	 By:                                     
                                        
                   
 
	  	 	 Attn:                                    
              
 	  	  	 	 Name:                                    
                                        
              
 
	  	 	  	  	  	 	 Title:                                    
                                        
                
 

 
 

 Signature Page 2 of 3 
 to

 Credit Agreement for STERIS Corporation 







Table of Contents


 
	 Address:
 	 	                                      
                       
 	  	  	 	 FLEET NATIONAL BANK
 
	  	 	                                      
                       
 	  	  	 	  
	  	 	                                      
                       
 	  	  	 	 By:                                     
                                        
                   
 
	  	 	 Attn:                                    
              
 	  	  	 	 Name:                                    
                                        
              
 
	  	 	  	  	  	 	 Title:                                    
                                        
                
 
	  	 	  	  	  	 	  
	 Address:
 	 	                                      
                       
 	  	  	 	 FIRSTMERIT BANK, N.A.
 
	  	 	                                      
                       
 	  	  	 	  
	  	 	                                      
                       
 	  	  	 	 By:                                     
                                        
                   
 
	  	 	 Attn:                                    
              
 	  	  	 	 Name:                                    
                                        
              
 
	  	 	  	  	  	 	 Title:                                    
                                        
                
 

 
 

 Signature Page 3 of 3 
 to

 Credit Agreement for STERIS Corporation 
  
  







Table of Contents


  
 SCHEDULE 1 
  
 Lenders and Commitments 
  
 
	 Lending Institutions
 
	 	 Revolving Credit
 Commitment Amount
 

	 KeyBank National Association
 	 	 $50,000,000
 
	 LaSalle Bank National Association
 	 	 $45,000,000
 
	 Harris Trust and Savings Bank
 	 	 $40,000,000
 
	 National City Bank
 	 	 $35,000,000
 
	 The Bank of New York
 	 	 $35,000,000
 
	 PNC Bank, National Association
 	 	 $35,000,000
 
	 Bank One, NA
 	 	 $30,000,000
 
	 Firstar Bank, N.A.
 	 	 $25,000,000
 
	 Fleet National Bank
 	 	 $20,000,000
 
	 FirstMerit Bank, N.A.
 	 	 $10,000,000
 
	  	 	 

	 Total Commitment Amount
 	 	 $325,000,000
 

 
 

 60 







Table of Contents


  
 SCHEDULE 2 
  
 GUARANTORS OF PAYMENT 
  
 Medical &
Environmental Designs, Inc., a Missouri corporation 
  
 Ecomed, Inc., an Indiana corporation 
  
 American Sterilizer Company, a Pennsylvania corporation 
  
 STERIS Europe, Inc., a Delaware corporation 
  
 STERIS Asia Pacific, Inc., a Delaware corporation 
  
 STERIS Inc., a Delaware corporation

  
 HTD Holding Corp., a Delaware corporation 
  
 HSTD LLC, a Delaware limited liability company 
  
 Hausted, Inc., a Delaware corporation 
  
 Isomedix Inc., a Delaware corporation 

 
 Isomedix Operations Inc., a Delaware corporation 
 








Table of Contents


  
 EXHIBIT A 
  
 REVOLVING CREDIT NOTE 
  
 
	 $
 	  	 Cleveland, Ohio
 
	  	  	 March 28, 2002
 

 
  
 FOR VALUE RECEIVED, the undersigned, STERIS CORPORATION, an Ohio
corporation (“Borrower”) promises to pay on the last day of the Commitment Period (such term, together with each other capitalized term used herein and not defined herein shall have the meanings ascribed to them in the Credit
Agreement described below), to the order of              (“Lender”) at the Main Office of KEYBANK NATIONAL ASSOCIATION, as Agent, 127 Public Square, Cleveland, Ohio
44114–1306 the principal sum of 
  
 
	 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.. . . . . . . . . ..AND 00/100 DOLLARS
 

 
  
 or the aggregate unpaid principal amount of all Revolving Loans
made by Lender to Borrower pursuant to Section 2.02 of the Credit Agreement, whichever is less (or, in the event of currency fluctuations on Alternate Currency Loans, such greater amount as may be outstanding), in lawful money of the United States
of America, provided, that Alternate Currency Loans shall be payable in the applicable Alternate Currency. In addition, Borrower shall pay any additional amount that is required to be paid pursuant to Section 10.14 of the Credit Agreement. As used
herein, “Credit Agreement” means the Credit Agreement dated as of March 28, 2002, among Borrower, the lending institutions named therein and KeyBank National Association, as Agent, as the same may from time to time be amended, restated or
otherwise modified. 
  
 Borrower also promises to pay interest on the unpaid principal amount of each Revolving Loan
from time to time outstanding, from the date of such Revolving Loan until the payment in full thereof, at the rates per annum that shall be determined in accordance with the provisions of Section 2.04 of the Credit Agreement. Such interest shall be
payable on each date provided for in such Section 2.04 provided, however, that interest on any principal portion that is not paid when due shall be payable on demand. 
  
 The portions of the principal sum hereof from time to time representing Base Rate Loans and Fixed Rate Loans, and payments of principal of any thereof, shall be shown on
the records of Lender by such method as Lender may generally employ; provided, however, that failure to make any such entry shall in no way detract from Borrower’s obligations under this Note. 
  
 If this Note shall not be paid at maturity, whether such maturity occurs by reason of lapse of time or by operation of any provision for
acceleration of maturity contained in the Credit Agreement, the principal hereof and the unpaid interest thereon shall bear interest, until paid, at a rate per annum equal to the Default Rate. All payments of principal of and interest on this Note
shall be made in immediately available funds. 
  
 This Note is one of the Revolving Credit Notes referred to in the
Credit Agreement. Reference is made to the Credit Agreement for a description of the right of the undersigned to
 
 

 Exhibit A - 1 







Table of Contents


 
anticipate payments hereof, the right of the holder hereof to declare this Note due prior to its stated maturity, and other terms and conditions upon which this Note is issued. 

 
 Except as expressly provided in the Credit Agreement, Borrower expressly waives presentment, demand, protest and notice of any
kind. 
  
 BORROWER WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN
CONTRACT, TORT OR OTHERWISE, AMONG BORROWER, AGENT AND THE LENDERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS NOTE OR ANY OTHER INSTRUMENT,
DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO. 
  
 STERIS CORPORATION 
  
 By:                                     
                                        
                    
  
 Name:                                    
                                        
              
  
 Title:                                    
                                        
                 
 

 Exhibit A - 2 







Table of Contents


 EXHIBIT B 
  
 SWING LINE NOTE 
  
 
	 $25,000,000.00
 	 	 Cleveland, Ohio
 
	  	 	 March 28, 2002
 

 
  
 FOR VALUE RECEIVED, the undersigned, STERIS CORPORATION, an Ohio
corporation (“Borrower”), promises to pay to the order of KEYBANK NATIONAL ASSOCIATION (“Lender”) at the Main Office of KEYBANK NATIONAL ASSOCIATION, Agent, 127 Public Square, Cleveland, Ohio 44114–1306 the principal
sum of 
  
 TWENTY-FIVE MILLION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AND 00/100
DOLLARS 
  
 or, if less, the aggregate unpaid principal amount of all Swing Loans (such term, together with each other capitalized term used
herein and not defined herein shall have the meanings ascribed to them in the Credit Agreement described below) made by Lender to Borrower pursuant to Section 2.02 of the Credit Agreement, in lawful money of the United States of America on the
earlier of the last day of the Commitment Period or, with respect to each Swing Loan, the Swing Loan Maturity Date applicable thereto. As used herein, “Credit Agreement” means the Credit Agreement dated as of March 28, 2002, among
Borrower, the lending institutions named therein and KeyBank National Association, as Agent, as the same may from time to time be amended, restated or otherwise modified. 
  
 Borrower also promises to pay interest on the unpaid principal amount of each Swing Loan from time to time outstanding, from the date of such Swing Loan until the payment
in full thereof, at the rates per annum which shall be determined in accordance with the provisions of Section 2.04 of the Credit Agreement. Such interest shall be payable on each date provided for in Section 2.04; provided, however, that interest
on any principal portion which is not paid when due shall be payable on demand. 
  
 The principal sum hereof from
time to time and the payments of principal and interest thereon of either hereof, shall be shown on the records of Lender by such method as Lender may generally employ; provided, however, that failure to make any such entry shall in no way detract
from Borrower’s obligations under this Note. 
  
 If this Note shall not be paid at maturity, whether such
maturity occurs by reason of lapse of time or by operation of any provision for acceleration of maturity contained in the Credit Agreement, the principal hereof and the unpaid interest thereon shall bear interest, until paid, at a rate per annum
equal to the Default Rate. All payments of principal of and interest on this Note shall be made in immediately available funds. 
  
 This Note is the Swing Line Note referred to in the Credit Agreement. Reference is made to the Credit Agreement for a description of the right of the undersigned to anticipate payments hereof, the right of the holder hereof to
declare this Note due prior to its stated maturity, and other terms and conditions upon which this Note is issued. 
 

 Exhibit B - 1 







Table of Contents


  
 Except as expressly provided in the Credit Agreement, Borrower expressly waives
presentment, demand, protest and notice of any kind. 
  
 BORROWER WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN
RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG BORROWER, AGENT AND THE LENDERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION
WITH THIS NOTE OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO. 
  
 STERIS CORPORATION 
  
 By:                                     
                                        
                   
 Name:                                    
                                        
              
 Title:                                    
                                        
                
 

 Exhibit B - 2 







Table of Contents


  
 EXHIBIT C 
  
 NOTICE OF LOAN 
  
 [Date]
            , 20     
  
 KeyBank National Association, as Agent 
 127 Public Square 
 Cleveland, Ohio 44114-0616 
 Attention:                                   
        
  
 Ladies and Gentlemen: 
  
 The undersigned, STERIS CORPORATION, an Ohio corporation, refers to the Credit Agreement, dated as of March 28, 2002 (“Credit
Agreement”, the terms defined therein being used herein as therein defined), among the undersigned, the Lenders, as defined in the Credit Agreement, and KeyBank National Association, as Agent, and hereby gives you notice, pursuant to
Section 2.03 of the Credit Agreement that the undersigned hereby requests a Loan under the Credit Agreement, and in connection therewith sets forth below the information relating to the Loan (the “Proposed Loan”) as required by
Section 2.03 of the Credit Agreement: 
  

	 	(a)
	 
	The Business Day of the Proposed Loan is
                    , 20    . 
 

  

	 	(b)
	 
	The amount of the Proposed Loan is
$                            . 
 

  

	 	(c)
	 
	The Proposed Loan is to be a Base Rate Loan             /Eurodollar Loan
             /Alternate Currency Loan              /Swing Loan
            . (Check one.) 
 

  

	 	(d)
	 
	If the Proposed Loan is an Alternate Currency Loan, the Alternate Currency requested is
            . 
 

  

	 	(e)
	 
	If the Proposed Loan is a Fixed Rate Loan, the Interest Period requested is one month
            , two months             , three months
            , six months             . (Check one.) 
 

  
 The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the Proposed
Loan: 
  
 (i)  the representations and warranties contained in each Loan Document are
correct, before and after giving effect to the Proposed Loan and the application of the proceeds therefrom, as though made on and as of such date; 
  
 (ii)  no event has occurred and is continuing, or would result from such Proposed Loan, or the application of proceeds therefrom, that constitutes
a Default or Event of Default; and 
 

 Exhibit C - 1 







Table of Contents


  
 (iii)  the conditions set forth in Section 2.03 and
Article VI of the Credit Agreement have been satisfied. 
  
 Very truly yours, 

 
 STERIS CORPORATION 
  
 By:                                     
                                        
                    
  
 Name:                                    
                                        
              
  
 Title:                                    
                                        
                
  
 

 Exhibit C - 2 







Table of Contents


  
 EXHIBIT D 
  
 COMPLIANCE CERTIFICATE 
  
 For Fiscal Quarter
ended                      
  
 THE UNDERSIGNED HEREBY CERTIFY THAT: 
  
 (1)  I am a duly
elected Financial Officer of STERIS CORPORATION, an Ohio corporation (“Borrower”); 
  
 (2)  I am familiar with the terms of that certain Credit Agreement, dated as of March 28, 2002, among the undersigned, the Lenders, as defined in the Credit Agreement, and KeyBank National Association, as Agent (as the same
may from time to time be amended, restated or otherwise modified, the “Credit Agreement”, the terms defined therein being used herein as therein defined), and the terms of the other Loan Documents, and I have made, or have caused to
be made under my supervision, a review in reasonable detail of the transactions and condition of Borrower and its Subsidiaries during the accounting period covered by the attached financial statements; 
  
 (3)  The review described in paragraph (2) above did not disclose, and I have no knowledge of, the existence of any condition or
event that constitutes or constituted a Default or Event of Default, at the end of the accounting period covered by the attached financial statements or as of the date of this Certificate; 
  
 (4)  Borrower hereby represents that the representations and warranties made by Borrower contained in each Loan Document are true and correct as though made on
and as of the date hereof; and 
  
 (5)  Set forth on Attachment I hereto are calculations of the covenants
set forth in Sections 5.07 and 5.14 of the Credit Agreement, which calculations show compliance with the terms thereof. 
  
 (6)  As of the end of the fiscal quarter referenced above, the aggregate amount of Permitted Foreign Subsidiary Loans and Investments is $            .

  
 IN WITNESS WHEREOF, I have signed this certificate the      day of
            , 20    . 
  
 STERIS CORPORATION 
  
 By:                                     
                                        
                   
  
 Name:                                    
                                        
              
  
 Title:                                    
                                        
                
 

 Exhibit D - 1 







Table of Contents


  
 EXHIBIT E 
  
 GUARANTY OF PAYMENT 
  
 This GUARANTY OF
PAYMENT (as the same may from time to time be amended, restated, supplemented or otherwise modified, this “Guaranty”) is entered into as of March 28, 2002 by each of the undersigned and any other Person, as defined in the Credit
Agreement (as hereinafter defined), that becomes a party hereto by joined supplement or otherwise after the date hereof (collectively, “Guarantors” and, individually, each a “Guarantor”), in favor of KEYBANK
NATIONAL ASSOCIATION, as administrative agent (“Agent”), for the benefit of the Lenders, as hereinafter defined. 
  
 Recitals: 
  
 A.    STERIS CORPORATION, an Ohio corporation (together with
its successors and assigns, “Borrower”), is entering into the Credit Agreement, as hereinafter defined, with Agent and the lending institutions from time to time parties thereto (together with their respective successors and
assigns, collectively, “Lenders” and, individually, each a “Lender”). 
  
 B.    Each Guarantor is a subsidiary of Borrower whose financing is provided by the Loans, as hereinafter defined, and each Guarantor deems it to be in its direct pecuniary and business interests that Borrower
obtain from the Lenders the Commitment, as defined in the Credit Agreement, and the Loans provided for in the Credit Agreement. 
  
 C.    Each Guarantor understands that the Lenders are willing to enter into the Credit Agreement with Borrower only upon certain terms and conditions, one of which is that the Guarantors guarantee the payment of
the Debt, as hereinafter defined, and this Guaranty is being executed and delivered in consideration of Agent and the Lenders entering into the Credit Agreement and for other valuable considerations. 
  
 Section 1.    Definitions.    Except as specifically defined herein, capitalized terms used
herein that are defined in the Credit Agreement have the respective meanings ascribed to such terms in the Credit Agreement. As used herein, the following terms have the following meanings: 
  
 “Collateral” means, collectively, all property, if any, securing the Debt or any part thereof at the time in question. 
  
 “Credit Agreement” means the Credit Agreement executed by and among Borrower, Agent and the Lenders, dated as of March
28, 2002, as the same may from time to time be amended, restated or otherwise modified. 
  
 “Debt”
means, collectively, all Debt, as defined in the Credit Agreement, and other obligations incurred by Borrower to the Lenders pursuant to the Credit Agreement and includes the principal of and interest (including interest accruing during the pendency
of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on all Notes, as defined in the Credit Agreement, and each extension, 
 

 Exhibit E - 1 







Table of Contents


 renewal or refinancing thereof in whole or in part, the facility fees, other fees and any prepayment fees and other amounts payable hereunder,
and all Related Expenses, as defined in the Credit Agreement. 
  
 “Loan” means any Loan, as defined
in the Credit Agreement, granted pursuant to the Credit Agreement. 
  
 “Obligor” means any Person
that, or any of whose property, is or shall be obligated on the Debt or any part thereof in any manner and includes, without limiting the generality of the foregoing, Borrower, any Guarantor, and any other co-maker, endorser, guarantor of payment,
subordinating creditor, assignor, grantor of a security interest, pledgor, mortgagor or any hypothecator of property, if any. 
  
 “Person” means any individual, sole proprietorship, partnership, joint venture, unincorporated organization, corporation, limited liability company, institution, trust, estate, government or other agency or political
subdivision thereof or any other entity. 
  
 Section 2.    Guaranty of
Debt.    Each Guarantor, jointly and severally, hereby absolutely and unconditionally guarantees the prompt payment in full of all of the Debt, whether now existing or hereafter arising, as and when the respective parts
thereof become due and payable. If the Debt, or any part thereof, is not paid in full when due and payable, Agent, on behalf of the Lenders, in each case, has the right to proceed directly against any Guarantor under this Guaranty to collect the
payment in full of the Debt, regardless of whether or not Agent, on behalf of the Lenders, has theretofore proceeded or is proceeding against Borrower or any other Obligor or Collateral, if any, or any of the foregoing. Agent and the Required
Lenders, in their sole discretion, may proceed against any Obligor and any Collateral, and may exercise each right, power or privilege that Agent or the Lenders may then have, either simultaneously or separately, and, in any event, at such time or
times and as often and in such order as Agent and the Required Lenders, in their sole discretion, may from time to time deem expedient to collect the payment in full of the Debt. 
  
 Section 3.    Payments Conditional.    Whenever Agent or any Lender credits any payment to the Debt or any part thereof,
whatever the source or form of payment, the credit shall be conditional as to each Guarantor unless and until the payment is final and valid as to all the world. Without limiting the generality of the foregoing, each Guarantor agrees that if any
check or other instrument so applied is dishonored by the drawer or any party thereto, or if any proceeds of Collateral or payment so applied is thereafter recovered by any trustee in bankruptcy or any other Person, each Lender, in each case, may
reverse any entry relating thereto on its books and such Guarantor shall remain liable therefor, even if such Lender may no longer have in its possession any evidence of the Debt to which the payment in question was applied. 
  
 Section 4.    Guarantors’ Obligations Absolute and Unconditional.    Regardless of the
duration of time, regardless of whether Borrower may from time to time cease to be indebted to the Lenders and irrespective of any act, omission or course of dealing whatever on the part of Agent or any Lender, each Guarantor’s liabilities and
other obligations under this Guaranty shall remain in full effect until the payment in full of the Debt. Without limiting the generality of the foregoing: 
 

 Exhibit E - 2 







Table of Contents


  
 (a)  no Lender shall at any time be under any duty to any Guarantor to
grant any financial accommodation to Borrower, irrespective of any duty or commitment of any of the Lenders to Borrower, or to follow or direct the application of the proceeds of any such financial accommodation; 
  
 (b)  each Guarantor waives (i) notice of the granting of any Loan to Borrower or the incurring of any other indebtedness by
Borrower or the terms and conditions thereof, (ii) presentment, demand for payment and notice of dishonor of the Debt or any part thereof, or any other indebtedness incurred by Borrower to any of the Lenders, (iii) notice of any indulgence granted
to any Obligor, and (iv) any other notice to which such Guarantor might, but for this waiver, be entitled; 
  
 (c)  Agent and the Lenders, in their sole discretion, may, without any prejudice to their rights under this Guaranty, at any time or times, without notice to or the consent of any Guarantor, (i) grant Borrower whatever
financial accommodations that Agent and the Lenders may from time to time deem advisable, even if Borrower might be in default in any respect and even if those financial accommodations might not constitute indebtedness the payment of which is
guaranteed hereunder, (ii) assent to any renewal, extension, consolidation or refinancing of the Debt, or any part thereof, (iii) forbear from demanding security, if Agent and the Lenders have the right to do so, (iv) release any Obligor or
Collateral or assent to any exchange of Collateral, if any, irrespective of the consideration, if any, received therefor, (v) grant any waiver or consent or forbear from exercising any right, power or privilege that Agent and the Lenders may have or
acquire, (vi) assent to any amendment, deletion, addition, supplement or other modification in, to or of any writing evidencing or securing any Debt or pursuant to which any Debt is created, (vii) grant any other indulgence to any Obligor, (viii)
accept any Collateral for, or any other Obligor upon, the Debt or any part thereof, and (ix) fail, neglect or omit in any way to realize upon any Collateral or to protect the Debt or any part thereof or any Collateral therefor; 

 
 (d)  each Guarantor’s liabilities and other obligations under this Guaranty shall survive any dissolution of
such Guarantor; and 
  
 (e)  each Guarantor’s liabilities and other obligations under this Guaranty
are absolute and unconditional irrespective of any lack of validity or enforceability of the Credit Agreement, the Notes, any Loan Document or any other agreement, instrument or document evidencing the Loans or related thereto, or any other defense
available to such Guarantor in respect of this Guaranty. 
  
 Section 5.    Representations and
Warranties.    Each Guarantor represents and warrants to Agent and each of the Lenders that (a) such Guarantor is a duly organized or formed and validly existing entity, in good standing or full force and effect under the
laws of the state of its incorporation or formation, and is qualified to do business in each state where a failure to so qualify would have a material adverse effect on such Guarantor; (b) such Guarantor has legal power and right to execute and
deliver this Guaranty and to perform and observe the provisions hereof; (c) the officer(s) executing and delivering this Guaranty on behalf of such Guarantor have been duly authorized to do so, and this Guaranty, when executed, is legal and binding
upon such Guarantor in every respect; (d) except for matters described or referenced in the Credit Agreement or any schedule thereto, no litigation or proceeding is pending or threatened against 
 

 Exhibit E - 3 







Table of Contents


  
 such Guarantor before any court or any administrative agency that, in such Guarantor’s opinion,
after consultation with such Guarantor’s counsel, is reasonably expected to have a material adverse effect on such Guarantor; (e) such Guarantor has received consideration that is the reasonable equivalent value of the obligations and
liabilities that such Guarantor has incurred to Agent and the Lenders; (f) such Guarantor is not insolvent, as defined in any applicable state or federal statute, nor will such Guarantor be rendered insolvent by the execution and delivery of this
Guaranty to Agent and the Lenders; (g) such Guarantor is not engaged or about to engage in any business or transaction for which the assets retained by such Guarantor are or will be an unreasonably small amount of capital, taking into consideration
the obligations to the Lenders incurred hereunder; and (h) such Guarantor does not intend to, nor does such Guarantor believe that it will, incur debts beyond its ability to pay such debts as they mature. 
  
 Section 6.    Incorporation of Credit Agreement.    Each Guarantor agrees that all
representations, warranties, and covenants contained in the Credit Agreement that are applicable to such Guarantor as a Company, as defined in the Credit Agreement, thereunder are specifically incorporated herein as if such statements were made by
such Guarantor herein. 
  
 Section 7.    Disability of
Obligor.    Without limiting the generality of any of the other provisions hereof, each Guarantor agrees that upon the dissolution of any Obligor and/or the filing or other commencement of any bankruptcy or insolvency
proceedings by, for or against any Obligor, including without limitation, any assignment for the benefit of creditors or other proceedings intended to liquidate or rehabilitate any Obligor, Agent and the Required Lenders, in their sole discretion,
may declare the unpaid principal balance of and accrued interest on the Debt to be forthwith due and payable in full without notice. Upon the occurrence of any of the events enumerated in the immediately preceding sentence, each Guarantor shall,
upon the demand of Agent, on behalf of the Lenders, whenever made, pay to Agent, for the benefit of the Lenders, an amount equal to the then unpaid principal balance of and accrued interest on the Debt. 
  
 Section 8.    Subordination. 
  
 (a)  Any Indebtedness, as defined in the Credit Agreement, of Borrower now or hereafter held by any Guarantor is hereby subordinated to the Indebtedness of
Borrower to Agent and the Lenders; and such Indebtedness of Borrower to any Guarantor, if Agent, after an Event of Default has occurred so requests, shall be collected, enforced and received by such Guarantor as trustee for Agent and the Lenders and
be paid over to Agent, for the benefit of Agent and the Lenders, on account of the Indebtedness of Borrower to Agent and the Lenders, 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 Indebtedness of 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 Agent or any
Lender or to any other person pursuant to or in respect of this Guaranty, any reimbursement or similar claim that such Guarantor may have against Borrower by reason thereof shall be subject and subordinate to the prior termination of the Commitment,
as defined in the Credit Agreement, and indefeasible payment in full of all Debt owed to Agent and the Lenders. 
 

 Exhibit E - 4 







Table of Contents


 Section 9.    Subrogation Rights.    Until such time as the Debt has been
paid in full in cash and otherwise fully performed and the Commitment under the Credit Agreement has been terminated, each Guarantor hereby irrevocably waives all rights of subrogation that 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 Agent and/or the Lenders against Borrower, any other Guarantor or any other guarantor of or surety for the Debt and all contractual, statutory or
common law rights of reimbursement, contribution or indemnity from Borrower or any other Guarantor that it may at any time otherwise have as a result of this Guaranty. 
  
 Section 10.    Notice.    All notices, requests, demands and other communications provided for hereunder shall be in writing
and, if to a Guarantor, addressed to it at 5960 Heisley Road, Mentor, Ohio 44060, Attention: Chief Financial Officer, and, if to Agent or a Lender, addressed to the address of Agent or such Lender specified on the signature pages of the Credit
Agreement. All notices, statements, requests, demands and other communications provided for hereunder shall be deemed delivered (a) upon receipt when delivered in person, (b) upon receipt of electronic confirmation of error free transmission when
sent by facsimile or other electronic means, (c) upon receipt when sent by nationally (or internationally, as the case may be) recognized overnight delivery service, or (d) 48 hours after being deposited in the mail when sent by first class mail,
registered mail, or certified mail. 
  
 Section
11.    Miscellaneous.    This Guaranty binds each Guarantor and its successors and assigns and inures to the benefit of Agent and each Lender and their respective successors and assigns, including,
without limitation, each holder of any Note evidencing any Debt. If, at any time, one or more provisions of this Guaranty is or becomes invalid, illegal or unenforceable in whole or in part, the validity, legality and enforceability of the remaining
provisions will not in any way be affected or impaired thereby. This Guaranty constitutes a final written expression of all of the terms of this Guaranty, is a complete and exclusive statement of those terms and supersedes all oral representations,
negotiations and prior writings, if any, with respect to the subject matter hereof. The relationship between (a) the Guarantors and (b) Agent and the Lenders with respect to this Guaranty is solely that of debtor and creditors, respectively, and
Agent and the Lenders have no fiduciary obligation toward any Guarantor with respect to this Guaranty or the transactions contemplated hereby. The captions herein are for convenience of reference only and shall be ignored in interpreting the
provisions of this Guaranty. 
  
 Section 12.    Judgment
Currency.    If Agent, on behalf of the Lenders, obtains a judgment or judgments against any Guarantor in an Alternate Currency, the obligations of such Guarantor in respect of any sum adjudged to be due to Agent or the
Lenders hereunder (the “Judgment Amount”) shall be discharged only to the extent that, on the Business Day following receipt by Agent of the Judgment Amount in the Alternate Currency, Agent, in accordance with normal banking
procedures, purchases Dollars with the Judgment Amount in such Alternate Currency. If the amount of Dollars so purchased is less than the amount of Dollars that could have been purchased with the Judgment Amount on the date or dates the Judgment
Amount (excluding the portion of the Judgment Amount that accrued as a result of the failure of such Guarantor to pay the sum originally due hereunder when it was originally due and owing to Agent or the Lenders hereunder, under the Credit Agreement
or under the Notes, as the case may be) was originally due and owing (the “Original Due Date”) to Agent or the Lenders hereunder (the “Loss”), such Guarantor agrees as a separate obligation and notwithstanding any
such 
 

 Exhibit E - 5 







Table of Contents


 judgment, to indemnify Agent or such Lender, as the case may be, against the Loss, and if the amount of Dollars so purchased exceeds the amount
of Dollars that could have been purchased with the Judgment Amount on the Original Due Date, Agent or such Lender agrees to remit such excess to such Guarantor. 
  
 Section 13.    Payments Net of Taxes.    All payments on account of principal, if any, interest and other fees and amounts payable hereunder shall be made
without set-off or counterclaim and, unless otherwise required by law, shall be made free and clear of and without deduction for withholding tax or similar tax, present or future, imposed by any taxing authority in any jurisdiction (a
“Tax”). If any Guarantor shall be required to withhold or pay any Tax, it shall make the required withholding and payment in accordance with and within the time allowed by law, and shall nonetheless pay to the appropriate Lender
such additional amounts as shall be necessary to cause such Lender actually to receive in full all amounts (after taking account of any further deduction or withholding that is required to be made as a consequence of the payment of such additional
amounts) on account of principal and interest or other fees or amounts owing to it hereunder, as if such Tax had not been paid. As soon as practicable after the date that any Tax shall become due and payable, (i) each Guarantor shall give to such
Lender the original or a copy of a receipt for the payment of the Tax, or, if such receipts are not issued by or received from the taxing authority to which the Tax was paid, a certificate of an officer of such Guarantor, confirming the date and
amount of the payment so made and reasonable details of the calculation of the amount due; and (ii) each Guarantor shall indemnify and save such Lender harmless from and against any claim, liability, loss, cost, expense (including without limitation
legal, accounting and other professional fees, and interest and penalty charges or fines imposed by any taxing authority in respect of or arising from non-payment of such Tax) to which such Lender may be exposed or that it may incur, by reason of
any Guarantor’s failure to make punctual payment of any amount required to be paid to a taxing authority pursuant to this Section. 
  
 Section 14.    Obligations and Agreement Independent.    The obligations of each Guarantor under this Guaranty are independent of the obligations of any other Guarantor or any
other Obligor, and a separate action or actions may be brought and prosecuted against any Guarantor whether or not any action is brought against any other Guarantor or any other Obligor and whether or not any other Guarantor or any other Obligor is
joined in any such action. This Guaranty shall be construed as a separate agreement with respect to each of the Guarantors and may be amended, modified, supplemented, waived, or released with respect to any Guarantor without the approval of any
other Guarantor and without affecting the obligations of any other Guarantor hereunder. 
  
 Section
15.    Governing Law; Submission to Jurisdiction.    The provisions of this Guaranty and the respective rights and duties of each Guarantor, Agent and the Lenders hereunder shall be governed by and
construed in accordance with Ohio law, without regard to principles of conflict of laws. Each Guarantor hereby irrevocably submits to the non–exclusive jurisdiction of any Ohio state or federal court sitting in Cleveland, Ohio, over any action
or proceeding arising out of or relating to this Guaranty, any Loan Document or any Related Writing, and such Guarantor hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined in such Ohio state
or federal court. Each Guarantor, on behalf of itself and its Subsidiaries, hereby irrevocably waives, to the fullest extent permitted by 
 

 Exhibit E - 6 







Table of Contents


 law, any objection it may now or hereafter have to the laying of venue in any action or proceeding in any such court as
well as any right it may now or hereafter have to remove such action or proceeding, once commenced, to another court on the grounds of FORUM NON CONVENIENS or otherwise. Each Guarantor agrees that a final, nonappealable judgment in any such action
or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 
  
 [Remainder of page intentionally left blank.] 
 

 Exhibit E - 7 







Table of Contents


  
 Section 16.    JURY TRIAL
WAIVER.    THE GUARANTORS, AGENT, AND THE LENDERS EACH WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, AMONG BORROWER, THE GUARANTORS, AGENT, AND THE
LENDERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS GUARANTY OR ANY NOTE OR OTHER AGREEMENT, INSTRUMENT OR DOCUMENT EXECUTED OR DELIVERED IN
CONNECTION THEREWITH OR THE TRANSACTIONS RELATED THERETO. 
  
 IN WITNESS WHEREOF, each Guarantor has executed and
delivered this Guaranty as of the date first written above. 
  
 [INSERT LIST OF GUARANTORS]

  
 By:
                                        
                                        
                
 Name:                                    
                                        
               
 Title:                                    
                                        
                
  
 of, and on behalf
of, each of the 
 above Guarantors 
  
 Exhibit E - 8 






Table of Contents


 EXHIBIT F 
  
 PLEDGE AGREEMENT 
  
 This PLEDGE AGREEMENT (as the same may from time to time be amended,
restated or otherwise modified, this “Agreement”) is entered into as of March 28, 2002, by
[                        ], a
[                    ] corporation (“Pledgor”), in favor of KEYBANK NATIONAL ASSOCIATION, as administrative agent
(“Agent”), for the benefit of the Lenders, as hereinafter defined. 
  
 Recitals: 
  
 A.    STERIS CORPORATION, an Ohio corporation (together with its successors and assigns, “Borrower”),
is entering into the Credit Agreement, as hereinafter defined, with Agent and the lending institutions from time to time parties thereto (together with their respective successors and assigns, collectively, “Lenders” and,
individually, each a “Lender”). 
  
 B.    Pledgor, a subsidiary of Borrower
whose financing is provided by the Loans, as hereinafter defined, deems it to be in the direct pecuniary and business interests of Pledgor that Borrower obtain from the Lenders the Commitment, as defined in the Credit Agreement, and the Loans
provided for in the Credit Agreement. 
  
 C.    Pledgor understands that the Lenders are willing
to grant such financial accommodations to Borrower only upon certain terms and conditions, one of which is that Pledgor grant to Agent, for the benefit of the Lenders, a security interest in and an assignment of the Collateral, as hereinafter
defined, and this Agreement is being executed and delivered in consideration of each financial accommodation granted to Borrower by Agent and the Lenders and for other valuable considerations. 
  

Section 1.    Definitions.    Except as specifically defined herein, capitalized terms used herein that are defined in
the Credit Agreement shall have the respective meanings ascribed to such terms in the Credit Agreement. Unless otherwise defined in this Section 1, terms that are defined in Chapter 1308 or 1309 of the Ohio Revised Code, as in effect from time to
time, are used herein as so defined. As used in this Agreement, the following terms have the following meanings: 
  
 “Collateral” means, collectively, (a) the Pledged Securities and each addition, if any, thereto and each substitution, if any, therefor, in whole or in part, (b) the certificates, if any, representing the Pledged
Securities, and (c) the dividends, cash, instruments and other property distributed in respect of and other proceeds of any of the foregoing. 
  
 “Credit Agreement” means the Credit Agreement, dated as of the March 28, 2002, among Borrower, Agent and the Lenders, as the same may from time to time be amended, restated or
otherwise modified. 
  
 “Debt” means, collectively, (a) all Debt, as defined in the Credit
Agreement, (b) all other obligations incurred by Borrower to the Lenders pursuant to the Credit Agreement and includes 
 

 Exhibit F - 1 







Table of Contents


 the principal of and interest (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such proceeding) on all Notes, and each extension, renewal or refinancing thereof in whole or in part, the facility fees, other fees and any prepayment fees and other amounts payable
hereunder, (c) all obligations with respect to Hedge Agreements, and (d) all Related Expenses, as defined in the Credit Agreement. 
  
 “Event of Default” has the meaning set forth in Section 6(a) hereof. 
  
 “Foreign Subsidiary” means a Subsidiary that is organized outside of the United States. 
  
 “Hedge Agreement” means any currency swap or hedge agreement, interest rate swap, cap, collar or floor agreement, or other interest rate management device entered into by any Company with Agent or any of the Lenders,
or any of their respective affiliates, in connection with the Debt. 
  
 “Loan” means any Loan, as
defined in the Credit Agreement, granted pursuant to the Credit Agreement. 
  
 “Person” means any
individual, sole proprietorship, partnership, joint venture, unincorporated organization, corporation, limited liability company, institution, trust, estate, government or other agency or political subdivision thereof or any other entity.

  
 “Pledged Securities” means, subject to Section 4 hereof, all of the shares of stock or other
equity interest of each Foreign Subsidiary of Pledgor owned by Pledgor, as listed on Schedule 1 hereto, and all additional shares of stock or other equity interest of each Foreign Subsidiary (including any Foreign Subsidiary created, acquired or
held after the date hereof) of Pledgor owned by Pledgor from time to time or acquired by Pledgor in any manner. 
  
 Section 2.    Security Interest.    Pledgor hereby grants to Agent, for the benefit of the Lenders, a security interest in and an assignment of the Collateral as security for the Debt,
whether now existing or hereafter arising. To the extent any of the Pledged Securities are certificated, Pledgor has executed appropriate transfer powers, in the form of Exhibit A hereto, with respect to the Pledged Securities and, concurrently
herewith, is depositing the Pledged Securities and the aforesaid transfer powers with Agent, for the benefit of the Lenders. In addition, Pledgor shall have taken all such actions necessary to grant to Agent, for the benefit of the Lenders, a first
preferred security interest in or pledge of such stock (or other equity interest). Pledgor authorizes Agent, on behalf of the Lenders, (a) to file UCC financing statements, in form and substance satisfactory to Agent, with respect to the Collateral
and, (b) after the occurrence of an Event of Default, to transfer the Pledged Securities into the name of Agent or Agent’s nominee, but Agent shall be under no duty to do so. Notwithstanding any provision or inference herein or elsewhere to the
contrary, (i) Agent has no right to vote the Pledged Securities at any time unless and until an Event of Default has occurred, and (ii) prior to the occurrence of an Event of Default, Pledgor will be permitted to receive all dividends and other
distributions with respect to the Pledged Securities. 
 

 Exhibit F - 2 







Table of Contents


  
 Section 3.    Pledgor’s Representations and
Warranties.    Pledgor represents and warrants to Agent and the Lenders as follows: 
  
 (a)  Pledgor is the legal record and beneficial owner of, and has good and marketable title to, the Pledged Securities, and the Pledged Securities are not subject to any pledge, lien, mortgage, hypothecation, security
interest, charge, option, warrant or other encumbrance whatsoever, nor to any agreement purporting to grant to any third party a security interest in the property or assets of Pledgor that would include such Pledged Securities, except the security
interest created by this Agreement or otherwise securing only Agent and the Lenders; 
  
 (b)  all of the
Pledged Securities have been duly authorized and validly issued, and are fully paid and non-assessable; 
  
 (c)  Pledgor has full power, authority and legal right to pledge all of the Pledged Securities pursuant to the terms of this Agreement; 
  
 (d)  no consent, license, permit, approval or authorization, filing or declaration with any governmental authority, domestic or foreign, and no consent of any other Person, is required to be
obtained by Pledgor in connection with the pledge of the Pledged Securities hereunder, that has not been obtained or made, and is not in full force and effect; 
  
 (e)  the pledge, assignment and delivery of the Pledged Securities hereunder creates a valid first lien on, and a first perfected security interest in, the Pledged Securities and the proceeds
thereof; 
  
 (f)  the Pledged Securities constitute 65% of the outstanding shares of stock or other equity
interest of each Foreign Subsidiary’s stock or other equity interest pledged in accordance with Section 4 hereof; 
  
 (g)  Pledgor fully anticipates that the Debt will be repaid without the necessity of selling the Pledged Securities; 
  
 (h)  Pledgor (i) has received consideration that is the reasonable equivalent value of the obligations and liabilities that Pledgor has incurred to Agent and the Lenders, (ii) is not
insolvent, as defined in any applicable state or federal statute, nor will Pledgor be rendered insolvent by the execution and delivery of this Agreement to Agent, for the benefit of the Lenders, (iii) is not engaged or about to engage in any
business or transaction for which the assets retained by Pledgor are or will be an unreasonably small amount of capital, taking into consideration the obligations to Agent and the Lenders incurred hereunder, and (iv) does not intend to incur debts
beyond Pledgor’s ability to pay them as they mature; and 
  
 (i)  if the Pledged Securities are
“restricted securities” within the meaning of Rule 144, or any amendment thereof, promulgated under the Securities Act of 1933, as amended (the “Securities Act”), as determined by counsel for Pledgor, Pledgor further
represents and warrants that (i) Pledgor has been the beneficial owner of the Pledged Securities for a period of at least two years prior to the date hereof, (ii) the full purchase price or other consideration for the Pledged Securities has been
paid or given at least two years prior to the date hereof, and (iii) Pledgor does not have a short position in or any put or other option to dispose of any 
 

 Exhibit F - 3 







Table of Contents


 securities of the same class as the Pledged Securities or any other securities convertible into securities of such class. 

 
 Section 4.    Foreign Subsidiaries.    Notwithstanding anything in this
Agreement to the contrary, Pledgor is not required to pledge more than 65% of the outstanding shares of stock or other equity interest of any Foreign Subsidiary if Pledgor is not required to do so pursuant to Section 5.21 of the Credit Agreement.

  
 Section 5.    Additional Covenants of Pledgor. 
  
 (a)  Pledgor covenants and agrees to defend the right, title and security interest of Agent and the Lenders in and to the
Pledged Securities and the proceeds thereof, and to maintain and preserve the lien and security interest provided for by this Agreement against the claim and demands of all Persons, so long as this Agreement remains in effect. 

 
 (b)  Pledgor covenants and agrees not to sell, assign, transfer, exchange or otherwise dispose of, or grant any
option with respect to, or create, incur or permit to exist any pledge, lien, mortgage, hypothecation, security interest, charge, option or any other encumbrance with respect to any of the Pledged Securities, or any interest therein, or any proceeds
thereof, except for the lien and security interest provided for by this Agreement and any security agreement securing only Agent and the Lenders. 
  
 (c)  Pledgor covenants and agrees (i) to cooperate, in good faith, with Agent and the Lenders and to do or cause to be done all such other acts as may be necessary to enforce the rights of
Agent and the Lenders under this Agreement, (ii) not to take any action, or to fail to take any action that would be adverse to the interest of Agent and the Lenders in the Collateral and hereunder, and (iii) to make any sale or sales of any portion
or all of the Pledged Securities valid and binding and in compliance with any and all applicable laws, regulations, orders, writs, injunctions, decrees or awards of any and all courts, arbitrators or governmental instrumentalities, domestic or
foreign, having jurisdiction over any such sale or sales at Pledgor’s expense. 
  
 Section
6.    Events of Default. 
  
 (a)  For purposes of this Agreement, “Event
of Default” means (i) the occurrence of an Event of Default, as defined in the Credit Agreement, under the Credit Agreement; (ii) any representation, warranty or statement made by Pledgor in or pursuant to this Agreement or in any other
writing received by Agent or the Lenders in connection with the Debt is false or erroneous in any material respect; and/or (iii) Pledgor fails or omits to perform or observe any agreement made by Pledgor in or pursuant to this Agreement or in any
other writing received by Agent or the Lenders pursuant hereto. 
  
 (b)  Upon the occurrence of an Event of
Default, and at all times thereafter, Agent, in its discretion, may sell, assign, transfer and deliver the Collateral, or any part thereof, at any time, or from time to time. No prior notice need be given to Pledgor or to any other Person in the
case of any sale of Collateral that Agent determines to be declining speedily in value or that is customarily sold in any securities exchange, over-the-counter market or other recognized market, but in any other case Agent shall give Pledgor no
fewer than ten days prior notice of 
 

 Exhibit F - 4 







Table of Contents


 either the time and place of any public sale of the Collateral or of the time after which any private sale or other intended disposition thereof
is to be made. Pledgor waives advertisement of any such sale and (except to the extent specifically required by the preceding sentence) waives notice of any kind in respect of any such sale. At any such public sale, Agent or any Lender may purchase
the Collateral, or any part thereof, free from any right of redemption, all of which rights Pledgor hereby waives and releases. After deducting all Related Expenses, and after paying all claims, if any, secured by liens having precedence over this
Agreement, Agent may apply the net proceeds of each such sale to or toward the payment of the Debt, whether or not then due, in such order and by such division as Agent in its sole discretion may deem advisable. Any excess, to the extent permitted
by law, shall be paid to Pledgor, and the obligors on the Debt shall remain liable for any deficiency. In addition, Agent at all times has the right to obtain new appraisals of Pledgor or the Collateral, the cost of which shall be paid by Pledgor.

  
 Section 7.    Attorney-In-Fact.    Pledgor hereby authorizes and
empowers Agent, on behalf of the Lenders, to make, constitute and appoint any officer or agent of Agent as Agent may select, in its exclusive discretion, as Pledgor’s true and lawful attorney-in-fact, with the power to endorse Pledgor’s
name on all applications, documents, papers and instruments necessary for Agent to take actions with respect to the Collateral after the occurrence of an Event of Default, including, without limitation, actions necessary for Agent to assign, pledge,
convey or otherwise transfer title in or dispose of the Collateral to any Person. Pledgor ratifies all that such attorney lawfully does or causes to be done by virtue hereof. This power of attorney is irrevocable for the life of this Agreement.

  
 Section 8.    Costs and Expenses.    If Pledgor fails to comply
with any of its obligations hereunder, Agent may do so in Pledgor’s name or in Agent’s name, but at Pledgor’s expense, and Pledgor hereby agrees to reimburse Agent and the Lenders in full for all expenses, including reasonable
attorneys’ fees, incurred by Agent and the Lenders in protecting, defending and maintaining the Collateral. Without limiting the foregoing, any and all Related Expenses and other reasonable fees, costs and expenses, of whatever kind or nature,
including the reasonable attorneys’ fees and expenses incurred in connection with the filing or recording of any documents (including all taxes in connection therewith) in public offices, the payment or discharge of any taxes, maintenance fees,
encumbrances or otherwise protecting, maintaining or preserving the Collateral, or in defending or prosecuting any actions or proceedings arising out of or related to the Collateral, shall be borne and paid by Pledgor upon request of Agent.

  
 Section 9.    Notice.    All notices, requests, demands and other
communications provided for hereunder shall be in writing and, if to Pledgor, addressed to it at 5960 Heisley Road, Mentor, Ohio 44060, Attention: Chief Financial Officer, and, if to Agent or a Lender, addressed to the address of Agent or such
Lender specified on the signature pages of the Credit Agreement. All notices, statements, requests, demands and other communications provided for hereunder shall be deemed delivered (a) upon receipt when delivered in person, (b) upon receipt of
electronic confirmation of error free transmission when sent by facsimile or other electronic means, (c) upon receipt when sent by nationally (or internationally, as the case may be) recognized overnight delivery service, or (d) 48 hours after being
deposited in the mail when sent by first class mail, registered mail, or certified mail. 
 

 Exhibit F - 5 







Table of Contents


 Section 10.    Interpretation.    Each right, power or privilege specified
or referred to in this Agreement is in addition to any other rights, powers and privileges that Agent or the Lenders may have or acquire by operation of law, by other contract or otherwise. No course of dealing in respect of, nor any omission or
delay in the exercise of, any right, power or privilege by Agent and the Lenders shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any further or other exercise thereof or of any other, as each right, power
or privilege may be exercised by Agent and the Lenders either independently or concurrently with other rights, powers and privileges and as often and in such order as Agent and the Lenders may deem expedient. No waiver or consent granted by Agent
and the Lenders in respect of this Agreement shall be binding upon Agent and the Lenders unless specifically granted in writing, which writing shall be strictly construed. 
  
 Section 11.    Termination.    At such time as the Debt has been irrevocably paid in full, the Commitment, as defined in the
Credit Agreement, terminated, and the Credit Agreement terminated and not replaced by any other credit facility with Agent and the Lenders, Pledgor shall have the right to terminate this Agreement. Upon written request of Pledgor, Agent shall
promptly execute and deliver to Pledgor appropriate releases with respect to the Collateral and return all of the Pledged Securities to Pledgor. 
  
 Section 12.    Assignment and Successors.    This Agreement shall not be assigned by Pledgor without the prior written consent of Agent. This Agreement
binds the successors and permitted assigns of Pledgor and benefits the successors and assigns of Agent and the Lenders. 
  
 Section 13.    Severability.    If, at any time, one or more provisions of this Agreement is or becomes invalid, illegal or unenforceable in whole or in part, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  
 Section
14.    Governing Law; Submission to Jurisdiction.    The provisions of this Agreement and the respective rights and duties of Pledgor and Agent and the Lenders hereunder shall be governed by and
construed in accordance with Ohio law, without regard to principles of conflict of laws. Pledgor hereby irrevocably submits to the non–exclusive jurisdiction of any Ohio state or federal court sitting in Cleveland, Ohio, over any action or
proceeding arising out of or relating to this Agreement, any Loan Document or any Related Writing, and Pledgor hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined in such Ohio state or
federal court. Pledgor, on behalf of itself and its Subsidiaries, hereby irrevocably waives, to the fullest extent permitted by law, any objection it may now or hereafter have to the laying of venue in any action or proceeding in any such court as
well as any right it may now or hereafter have to remove such action or proceeding, once commenced, to another court on the grounds of FORUM NON CONVENIENS or otherwise. Pledgor agrees that a final, nonappealable judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 
  
 [Remainder of page intentionally left blank.] 
 

 Exhibit F - 6 







Table of Contents


 Section 15.    JURY TRIAL WAIVER.    PLEDGOR, AGENT AND THE LENDERS WAIVE
ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG BORROWER, PLEDGOR, AGENT AND THE LENDERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE
RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AGREEMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION THEREWITH OR THE TRANSACTIONS RELATED THERETO. 
  
 IN WITNESS WHEREOF, Pledgor has executed and delivered this Agreement as of the date first written above. 
  
 [                                     
                                        
                       ] 
  
 By:                                     
                                        
                    
 Name:                                    
                                        
               
 Title:                                    
                                        
                 
 

 Exhibit F - 7 







Table of Contents


 EXHIBIT A 
  
 FORM OF 
 STOCK TRANSFER POWER 
  
 FOR VALUE RECEIVED,
                                 hereby sells, assigns and transfers unto
                         (             ) Shares of the
                         Capital Stock of
                                 standing in
                         name on the books of said corporation and represented by Certificate No.
             herewith and does hereby irrevocably constitute and appoint              attorney to transfer the said stock on the
books of the within named corporation with full power of substitution in the premises. 
  
 [                                     
                                        
                       ] 
  
 
	 Dated:
 	 	 By:                                     
                                        
                   
 
	  	 	 Name:                                    
                                        
              
 
	  	 	 Title:                                    
                                        
                
 

 
 

 Exhibit F - 8 







Table of Contents


 SCHEDULE 1 
  
 PLEDGED SECURITIES 
  
 [PLEDGOR TO COMPLETE] 
  
 
	 
	 Name of Subsidiary
 	  	 Number of Shares
 	    	 Certificate Number
 
	                                      
                                        
                                        
                                        
                                        
                    
 
	                                      
                                        
                                        
                                        
                                        
                    
 
	                                      
                                        
                                        
                                        
                                        
                    
 
	                                      
                                        
                                        
                                        
                                        
                    
 
	                                      
                                        
                                        
                                        
                                        
                    
 
	                                      
                                        
                                        
                                        
                                        
                    
 
	                                      
                                        
                                        
                                        
                                        
                    
 
	                                      
                                        
                                        
                                        
                                        
                    
 
	                                      
                                        
                                        
                                        
                                        
                    
 
	                                      
                                        
                                        
                                        
                                        
                    
 
	  

 
 

 Exhibit F - 9 







Table of Contents


  
 EXHIBIT G 
  
 ASSIGNMENT AND ASSUMPTION AGREEMENT 
  
 This Assignment and Assumption Agreement (the “Assignment”) is dated as of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”) and
[Insert name of Assignee] (the “Assignee”). Capitalized terms used but not defined herein shall have the meanings given to such terms in the Credit Agreement identified below (as the same may from time to time be amended,
restated or otherwise modified, the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated
herein by reference and made a part of this Assignment as if set forth herein in full. 
  
 For an agreed
consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit
Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below, the interest in and to all of the Assignor’s rights and obligations under the Credit Agreement and any other documents or instruments delivered
pursuant thereto that represents the amount and percentage interest identified below of all of the Assignor’s outstanding rights and obligations under the respective facilities identified below, including, to the extent included in any such
facilities, Letters of Credit and Swing Loans (the “Assigned Interest”). Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment, without representation or warranty by the
Assignor. 
  
 1.    Assignor:
             
  
 2.    Assignee:
             
  
 3.    Borrower
STERIS CORPORATION 
  
 4.    Agent: KEYBANK NATIONAL ASSOCIATION, as Agent under the Credit
Agreement 
  
 5.    Credit Agreement: The $325,000,000 Credit Agreement dated as of March 28,
2002, among STERIS CORPORATION, the Lenders parties thereto, KEYBANK NATIONAL ASSOCIATION, as Agent, and the other agent a party thereto. 
 

 Exhibit G - 1 







Table of Contents


 6.    Assigned Interest: 
  
 
	 Facility Assigned
 
	  	 Aggregate
Amount of Commitment/Loans for all Lenders
 
	  	 Amount of Commitment/Loans Assigned
 
	    	 Percentage
Assigned of Commitment/Loans1
 
	 
	 ___________________________________1
 	  	 $ ______________  
 	  	 $
 	  ______________  
 	    	 _________ 
 	 %  
 
	 ___________________________________
 	  	 $ ______________  
 	  	 $
 	  ______________  
 	    	 _________ 
 	 %
 
	 ___________________________________
 	  	 $ ______________  
 	  	 $
 	  ______________  
 	    	 _________ 
 	 %  
 

 
  
 Effective Date: _________________ ____, 20___ [TO BE INSERTED BY AGENT AND WHICH
SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.] 
  
 The terms set forth in
this Assignment are hereby agreed to: 
  
 ASSIGNOR 
 [NAME OF ASSIGNOR] 
  
 By:                                     
                                        
                    
 Name:                                    
                                        
               
 Title:                                    
                                        
                 
  
 ASSIGNEE 
 [NAME OF ASSIGNEE] 
  
 By:                                     
                                        
                    
 Name:                                    
                                        
               
 Title:                                    
                                        
                 
  
 [Consented to and]2 Accepted: 
  
 KEYBANK NATIONAL ASSOCIATION, as Agent 
  
 By:                                     
                                        
                         
 Name:                                    
                                        
                    
 Title:                                    
                                        
                      
  
 

	1
	 
	Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder. 
 


	2
	 
	To be added only if the consent of Agent is required by the terms of the Credit Agreement. 
 

 

 Exhibit G - 2 







Table of Contents


 [Consented to:]3 
  
 STERIS CORPORATION 
  
 By:                                     
                                        
                         
 Name:                                    
                                        
                    
 Title:                                    
                                        
                      
  
 
3 To be added only if the consent of the Borrower is
required by the terms of the Credit Agreement. 
 

 Exhibit G - 3 







Table of Contents


  
 ANNEX 1 
  
 $325,000,000 Credit Agreement 
 for STERIS Corporation 
 dated as of March 28, 2002 
  
 STANDARD TERMS
AND CONDITIONS FOR ASSIGNMENT 
 AND ASSUMPTION AGREEMENT 
  
 1.  Representations and Warranties. 
  
 1.1.  Assignor.    The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien,
encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with
respect to (i) any statements, warranties or representations made in or in connection with any Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Agreement or any other instrument
or document delivered pursuant thereto, other than this Assignment (herein, collectively, the “Credit Documents”), or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or
any other Person obligated in respect of any Credit Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Credit Document.

  
 1.2.  Assignee.    The Assignee (a) represents and warrants that (i) it has
full power and authority, and has taken all action necessary, to execute and deliver this Assignment and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all requirements of an
eligible assignee under Section 10.10(a) of the Credit Agreement, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement and, to the extent of the Assigned Interest, shall have the obligations of a
Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 5.03 thereof, as applicable, and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this Assignment and to purchase the Assigned Interest on the basis of which it has made such analysis and decision, and (v) if it is an assignee described in Section 10.10(f) of
the Credit Agreement, attached to the Assignment is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and
without reliance on 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 Documents,
and (ii) it will perform in accordance with their terms all of the obligations that by the terms of the Credit Documents are required to be performed by it as a Lender. 
  
 2.  Payments.    From and after the Effective Date, Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other 
 

 Exhibit G - 4 







Table of Contents


 amounts) to the Assignor for amounts that have accrued to (but excluding) the Effective Date and to the Assignee for amounts that have accrued
from and after the Effective Date. 
  
 3.  General Provisions.    This
Assignment shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of
an executed counterpart of a signature page of this Assignment by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment. This Assignment shall be governed by, and construed in accordance with, the law of the
State of Ohio, without regard to principles of conflicts of laws. 
  
 [End of Annex 1] 
  
 

 Exhibit G - 5 







Table of Contents


  
 EXHIBIT H 
  
 REQUEST FOR EXTENSION 
  
 [Date]
_________________, 20___ 
  
 KeyBank National Association, as Agent 
 127 Public Square 
 Cleveland, Ohio 44114 
 Attention:
             
  
 Ladies and Gentlemen: 
  
 The undersigned, STERIS CORPORATION, an Ohio corporation, refers to the Credit Agreement, dated as of March 28, 2002 (as the same may from
time to time be amended, restated or otherwise modified, the “Credit Agreement”, the terms defined therein being used herein as therein defined), among the undersigned, the Lenders, as defined in the Credit Agreement, and KeyBank
National Association, as Agent, and hereby gives you notice, pursuant to Section 2.13 of the Credit Agreement that the undersigned hereby requests an extension as set forth below (the “Extension”) under the Credit Agreement, and in
connection with the Extension sets forth below the information relating to the Extension as required by Section 2.13 of the Credit Agreement. 
  
 The undersigned hereby requests Agent and the Lenders to extend the Commitment Period from ________________ ____, 20___ to________________ ____, 20___. 
  
 The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the Extension:
(i) the representations and warranties contained in each Loan Document are correct, before and after giving effect to the Extension and the application of the proceeds therefrom, as though made on and as of such date; (ii) no event has occurred and
is continuing, or would result from such Extension, or the application of proceeds therefrom, which constitutes a Default or an Event of Default; and (iii) the conditions set forth in Section 2.03 and Article VI of the Credit Agreement have been
satisfied. 
  
 Very truly yours, 
  
 STERIS CORPORATION 
  
 By:                                     
                                        
                    
 Name:                                    
                                        
               
 Title:                                    
                                        
                 
 

 Exhibit H - 1 







Table of Contents


  
 EXHIBIT I 
  
 CONTRIBUTION AGREEMENT 
  
 This
CONTRIBUTION AGREEMENT (as the same may from time to time be amended, restated, supplemented or otherwise modified, this “Agreement”) is entered into as of March 28, 2002 by and among STERIS CORPORATION, an Ohio corporation
(“Borrower”), and each of the undersigned (other than Borrower) and any other Person, as defined in the Credit Agreement (as hereinafter defined), that becomes a party hereto by joined supplement or otherwise after the date hereof
(collectively, the “Subsidiaries” and, individually, each a “Subsidiary”). Borrower and each of the Subsidiaries are sometimes hereinafter referred to, collectively, as the “Contributing Parties”
and, individually, as a “Contributing Party”). 
  
 Recitals: 
  
 A.    STERIS CORPORATION, an Ohio corporation (together with its successors and assigns, “Borrower”),
is entering into the Credit Agreement (as the same may from time to time be amended, restated or otherwise modified, the “Credit Agreement”; unless otherwise provided herein, capitalized terms used in this Agreement have the
meanings set forth in the Credit Agreement) dated as of March 28, 2002, with Agent and the lending institutions from time to time parties thereto (together with their respective successors and assigns, collectively, “Lenders” and,
individually, each a “Lender”). 
  
 B.    As a condition, among others, to
Agent’s and the Lenders’ willingness to enter into the Credit Agreement, the Lenders have required that each Subsidiary execute and deliver a Guaranty of Payment, dated as of March 28, 2002 (as the same may from time to time be amended,
restated, supplemented or otherwise modified, the “Guaranty of Payment”), pursuant to which, among other things, the Subsidiaries have jointly and severally agreed to guarantee Borrower’s indebtedness and other obligations owed
to Agent and Lenders under and as defined in the Credit Agreement, including, without limitation, the Debt (as defined in the Guaranty of Payment, hereinafter referred to as the “Guaranteed Debt”) it owes to Agent and/or the Lenders.

  
 C.    Each Subsidiary is a wholly–owned direct or indirect subsidiary of Borrower and is
engaged in businesses related to those of Borrower and each other Subsidiary, and each of the Subsidiaries will derive direct or indirect economic benefit from the effectiveness and existence of the Credit Agreement. 
  
 Agreement: 
  
 In consideration of the premises and the covenants hereinafter contained, and to induce each Subsidiary to enter into the Guaranty of Payment, it is agreed as follows: 
  
 Section 1.    To the extent that any Subsidiary shall, under the Guaranty of Payment, make a payment (a “Subsidiary Payment”) of a
portion of the Guaranteed Debt, then such Subsidiary shall be entitled to contribution and indemnification from, and be reimbursed by, each of the other Contributing Parties in an amount, for each such Contributing Party, equal to a

 

 Exhibit I - 1 







Table of Contents


 fraction of such Subsidiary Payment, the numerator of which fraction is such Contributing Party’s Allocable Amount (as described in Section
2 hereof) and the denominator of which is the sum of the Allocable Amounts of all of the Contributing Parties. 
  
 Section 2.    As of any date of determination, the “Allocable Amount” of each Contributing Party shall be equal to the maximum amount of liability that could be asserted against such Contributing Party
hereunder with respect to the applicable Subsidiary Payment without (i) rendering such Contributing Party “insolvent” within the meaning of Section 101(31) of the Federal Bankruptcy Code (the “Bankruptcy Code”) or Section
2 of either the Uniform Fraudulent Transfer Act (the “UFTA”) or the Uniform Fraudulent Conveyance Act (the “UFCA”), (ii) leaving such Contributing Party with unreasonably small capital, within the meaning of Section
548 of the Bankruptcy Code or Section 4 of the UFTA or Section 5 of the UFCA, or (iii) leaving such Contributing Party unable to pay its debts as they become due within the meaning of Section 548 of the Bankruptcy Code or Section 4 of the UFTA or
Section 6 of the UFCA. 
  
 Section 3.    This Agreement is intended only to define the relative
rights of the Contributing Parties, and nothing set forth in this Agreement is intended to or shall impair the obligations of the Subsidiaries, jointly and severally, to pay any amounts, as and when the same shall become due and payable in
accordance with the terms of the Guaranty of Payment. 
  
 Section 4.    The parties hereto
acknowledge that the rights of contribution and indemnification hereunder shall constitute assets in favor of each Subsidiary to which such contribution and indemnification is owing. 
  
 Section 5.    This Agreement shall become effective upon its execution by each of the Contributing Parties and shall continue in full force and effect
and may not be terminated or otherwise revoked by any Contributing Party until all of the Obligations under and as defined in the Agreement shall have been indefeasibly paid in full (in lawful money of the United States of America) and discharged
and this Agreement and financing arrangements evidenced and governed by the Credit Agreement shall have been terminated. Each Contributing Party agrees that if, notwithstanding the foregoing, such Contributing Party shall have any right under
applicable law to terminate or revoke this Agreement, and such Contributing Party shall attempt to exercise such right, then such termination or revocation shall not be effective until a written notice of such revocation or termination, specifically
referring hereto and signed by such Contributing Party, is actually received by each of the other Contributing Parties and by Agent at its notice address set forth in the Credit Agreement. Such notice shall not affect the right or power of any
Contributing Party to enforce rights arising prior to receipt of such written notice by each of the other Contributing Parties and Agent. If Agent or any Lender grants additional Loans or issues additional Letters of Credit to Borrower or takes
other action giving rise to additional Obligations after any Contributing Party has exercised any right to terminate or revoke this Agreement but before Agent receives such written notice, the rights of each other Contributing Party to contribution
and indemnification hereunder in connection with any Subsidiary Payments made with respect to such Loans or Letters of Credit shall be the same as if such termination or revocation had not occurred. 
 

 Exhibit I - 2 







Table of Contents


  
 IN WITNESS WHEREOF, each Contributing Party has executed and delivered this
Agreement as of the date first written above. 
  
 STERIS CORPORATION 
  
 By:                                     
                                        
                    
 Title:                                    
                                        
                 
 Name:                                    
                                        
               
  
 Address: 
  
 5960 Heisley Road 
 Mentor, Ohio 44060 
 Attn: Chief Financial
Officer 
  
 [INSERT LIST OF SUBSIDIARIES] 
  

By:                                     
                                        
                    
 Title:                                    
                                        
                 
 Name:                                    
                                        
               
  
 Address: 
 c/o STERIS Corporation 
 5960 Heisley Road 
 Mentor, Ohio 44060 
 Attn: Chief Financial Officer 
 

 Exhibit I - 3