Document:

Exhibit 10.1

 

$150,000,000.00  REVOLVING CREDIT FACILITY

 

 

CREDIT AGREEMENT

 

by and among

 

COVANCE INC.

 

and

THE GUARANTORS PARTY HERETO,

 

and

 

THE LENDERS PARTY HERETO

 

and

 

PNC BANK, NATIONAL ASSOCIATION, As Agent

 

Dated as of June 16, 2009

 

 

PNC BANK, NATIONAL ASSOCIATION, as Agent

CITIBANK, N.A., as Syndication Agent

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

JP MORGAN CHASE BANK, N.A., as Documentation Agent

TORONTO DOMINION (NEW
YORK) LLC, as Documentation Agent

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
  Section

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
  CERTAIN DEFINITIONS

  	
  1

  
	
   

  	
  1.1

  	
  Certain Definitions

  	
  1

  
	
   

  	
  1.2

  	
  Construction

  	
  28

  
	
   

  	
   

  	
  1.2.1

  	
  Number; Inclusion

  	
  29

  
	
   

  	
   

  	
  1.2.2

  	
  Determination

  	
  29

  
	
   

  	
   

  	
  1.2.3

  	
  Agent’s Discretion and Consent

  	
  29

  
	
   

  	
   

  	
  1.2.4

  	
  Documents Taken as a Whole

  	
  29

  
	
   

  	
   

  	
  1.2.5

  	
  Headings

  	
  29

  
	
   

  	
   

  	
  1.2.6

  	
  Implied References to this Agreement

  	
  29

  
	
   

  	
   

  	
  1.2.7

  	
  Persons

  	
  29

  
	
   

  	
   

  	
  1.2.8

  	
  Modifications to Documents

  	
  30

  
	
   

  	
   

  	
  1.2.9

  	
  From, To and Through

  	
  30

  
	
   

  	
   

  	
  1.2.10

  	
  Shall; Will

  	
  30

  
	
   

  	
  1.3

  	
  Accounting Principles

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  REVOLVING CREDIT AND SWING LOAN
  FACILITIES

  	
  31

  
	
   

  	
  2.1

  	
  Revolving Credit Commitments

  	
  31

  
	
   

  	
   

  	
  2.1.1

  	
  Revolving Credit Loans

  	
  31

  
	
   

  	
  2.2

  	
  Swing Loan Commitment

  	
  31

  
	
   

  	
   

  	
  2.2.1

  	
  Swing Loans

  	
  31

  
	
   

  	
  2.3

  	
  Nature of Lenders’ Obligations with
  Respect to Revolving Credit Loans

  	
  31

  
	
   

  	
  2.4

  	
  Commitment Fees

  	
  32

  
	
   

  	
  2.5

  	
  Revolving Credit Loan Requests; Swing
  Loan Requests

  	
  32

  
	
   

  	
   

  	
  2.5.1

  	
  Revolving Credit Loan Requests

  	
  32

  
	
   

  	
   

  	
  2.5.2

  	
  Swing Loan Requests

  	
  33

  
	
   

  	
  2.6

  	
  Making Revolving Credit Loans and
  Swing Loans

  	
  33

  
	
   

  	
   

  	
  2.6.1

  	
  Making Revolving Credit Loans

  	
  33

  
	
   

  	
   

  	
  2.6.2

  	
  Making Swing Loans

  	
  34

  
	
   

  	
  2.7

  	
  Swing Loan Note

  	
  34

  
	
   

  	
  2.8

  	
  Use of Proceeds

  	
  34

  
	
   

  	
  2.9

  	
  Borrowings to Repay Swing Loans

  	
  34

  
	
   

  	
  2.10

  	
  Letter of Credit Subfacility

  	
  34

  
	
   

  	
   

  	
  2.10.1

  	
  Issuance of Letters of Credit

  	
  34

  
	
   

  	
   

  	
  2.10.2

  	
  Letter of Credit Fees

  	
  35

  
	
   

  	
   

  	
  2.10.3

  	
  Disbursements, Reimbursement

  	
  35

  
	
   

  	
   

  	
  2.10.4

  	
  Repayment of Participation Advances

  	
  37

  
	
   

  	
   

  	
  2.10.5

  	
  Documentation

  	
  37

  
	
   

  	
   

  	
  2.10.6

  	
  Determinations to Honor Drawing
  Requests

  	
  37

  
	
   

  	
   

  	
  2.10.7

  	
  Nature of Participation and
  Reimbursement Obligations

  	
  38

  
	
   

  	
   

  	
  2.10.8

  	
  Indemnity

  	
  39

  
	
   

  	
   

  	
  2.10.9

  	
  Liability for Acts and Omissions

  	
  40

  
	
   

  	
   

  	
  2.10.10

  	
  Cash Collateral

  	
  41

  

 

 

	
   

  	
  2.11

  	
  Utilization of Commitments in
  Optional Currencies

  	
  41

  
	
   

  	
   

  	
  2.11.1

  	
  Periodic Computations of Dollar
  Equivalent Amounts of Loans and Letters of Credit Outstanding

  	
  41

  
	
   

  	
   

  	
  2.11.2

  	
  Notices From Lenders That Optional
  Currencies Are Unavailable to Fund New Loans

  	
  41

  
	
   

  	
   

  	
  2.11.3

  	
  Notices From Lenders That Optional
  Currencies Are Unavailable to Fund Renewals of the Euro-Rate Option

  	
  42

  
	
   

  	
   

  	
  2.11.4

  	
  European Monetary Union

  	
  43

  
	
   

  	
   

  	
  2.11.5

  	
  Requests for Additional Optional
  Currencies

  	
  43

  
	
   

  	
  2.12

  	
  Currency Repayments

  	
  44

  
	
   

  	
  2.13

  	
  Optional Currency Amounts

  	
  44

  
	
   

  	
  2.14

  	
  Right to Increase Revolving Credit
  Commitments

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  [INTENTIONALLY OMITTED.]

  	
  45

  
	
   

  	
   

  	
   

  
	
  4.

  	
  INTEREST RATES

  	
  45

  
	
   

  	
  4.1

  	
  Interest Rate Options

  	
  45

  
	
   

  	
   

  	
  4.1.1

  	
  Revolving Credit Interest Rate
  Options

  	
  45

  
	
   

  	
   

  	
  4.1.2

  	
  Rate Quotations

  	
  46

  
	
   

  	
  4.2

  	
  Interest Periods

  	
  46

  
	
   

  	
   

  	
  4.2.1

  	
  Amount of Borrowing Tranche

  	
  46

  
	
   

  	
   

  	
  4.2.2

  	
  Renewals

  	
  46

  
	
   

  	
  4.3

  	
  Interest After Default

  	
  46

  
	
   

  	
   

  	
  4.3.1

  	
  Letter of Credit Fees, Interest Rate

  	
  46

  
	
   

  	
   

  	
  4.3.2

  	
  Other Obligations

  	
  47

  
	
   

  	
   

  	
  4.3.3

  	
  Acknowledgment

  	
  47

  
	
   

  	
  4.4

  	
  Euro-Rate Unascertainable;
  Illegality; Increased Costs; Deposits Not Available

  	
  47

  
	
   

  	
   

  	
  4.4.1

  	
  Unascertainable

  	
  47

  
	
   

  	
   

  	
  4.4.2

  	
  Illegality; Increased Costs;
  Deposits Not Available

  	
  47

  
	
   

  	
   

  	
  4.4.3

  	
  Agent’s and Lender’s Rights

  	
  48

  
	
   

  	
  4.5

  	
  Selection of Interest Rate Options

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  PAYMENTS

  	
  49

  
	
   

  	
  5.1

  	
  Payments

  	
  49

  
	
   

  	
  5.2

  	
  Pro Rata Treatment of Lenders

  	
  49

  
	
   

  	
  5.3

  	
  Interest Payment Dates

  	
  50

  
	
   

  	
  5.4

  	
  Voluntary Prepayments, Mandatory
  Prepayments

  	
  50

  
	
   

  	
   

  	
  5.4.1

  	
  Right to Prepay

  	
  50

  
	
   

  	
   

  	
  5.4.2

  	
  Replacement of a Lender

  	
  51

  
	
   

  	
   

  	
  5.4.3

  	
  Change of Lending Office

  	
  52

  
	
   

  	
   

  	
  5.4.4

  	
  Voluntary Reduction of Revolving
  Credit Commitments

  	
  52

  
	
   

  	
   

  	
  5.4.5

  	
  Application Among Interest Rate
  Options

  	
  52

  
	
   

  	
   

  	
  5.4.6

  	
  Mandatory Prepayment - Currency
  Fluctuations

  	
  53

  
	
   

  	
   

  	
  5.4.7

  	
  Expiration Date

  	
  53

  
	
   

  	
  5.5

  	
  Additional Compensation in Certain Circumstances

  	
  53

  

 

ii

 

	
   

  	
   

  	
  5.5.1

  	
  Increased Costs Generally. If any
  Change in Law shall:

  	
  53

  
	
   

  	
   

  	
  5.5.2

  	
  Capital Requirements

  	
  54

  
	
   

  	
   

  	
  5.5.3

  	
  Certificates for Reimbursement;
  Repayment of Outstanding Loans; Borrowing of New Loans

  	
  54

  
	
   

  	
   

  	
  5.5.4

  	
  Delay in Requests

  	
  54

  
	
   

  	
   

  	
  5.5.5

  	
  Additional Costs with Respect to
  Loans in Optional Currencies

  	
  55

  
	
   

  	
  5.6

  	
  Taxes

  	
  55

  
	
   

  	
   

  	
  5.6.1

  	
  Payments Free of Taxes

  	
  55

  
	
   

  	
   

  	
  5.6.2

  	
  Payment of Other Taxes by the
  Borrower

  	
  55

  
	
   

  	
   

  	
  5.6.3

  	
  Indemnification by the Borrower

  	
  55

  
	
   

  	
   

  	
  5.6.4

  	
  Evidence of Payments

  	
  56

  
	
   

  	
   

  	
  5.6.5

  	
  Status of Lenders

  	
  56

  
	
   

  	
   

  	
  5.6.6

  	
  Refund

  	
  57

  
	
   

  	
  5.7

  	
  Indemnity

  	
  57

  
	
   

  	
  5.8

  	
  Interbank Market Presumption

  	
  58

  
	
   

  	
  5.9

  	
  Notes

  	
  58

  
	
   

  	
  5.10

  	
  Settlement Date Procedures

  	
  58

  
	
   

  	
  5.11

  	
  Judgment Currency

  	
  59

  
	
   

  	
   

  	
  5.11.1

  	
  Currency Conversion Procedures for
  Judgments

  	
  59

  
	
   

  	
   

  	
  5.11.2

  	
  Indemnity in Certain Events

  	
  59

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  REPRESENTATIONS AND WARRANTIES

  	
  60

  
	
   

  	
  6.1

  	
  Representations and Warranties

  	
  60

  
	
   

  	
   

  	
  6.1.1

  	
  Organization and Qualification

  	
  60

  
	
   

  	
   

  	
  6.1.2

  	
  [Intentionally Omitted.]

  	
  60

  
	
   

  	
   

  	
  6.1.3

  	
  Subsidiaries

  	
  60

  
	
   

  	
   

  	
  6.1.4

  	
  Power and Authority

  	
  60

  
	
   

  	
   

  	
  6.1.5

  	
  Validity and Binding Effect

  	
  61

  
	
   

  	
   

  	
  6.1.6

  	
  No Conflict

  	
  61

  
	
   

  	
   

  	
  6.1.7

  	
  Litigation

  	
  61

  
	
   

  	
   

  	
  6.1.8

  	
  Title to Properties

  	
  61

  
	
   

  	
   

  	
  6.1.9

  	
  Financial Statements

  	
  62

  
	
   

  	
   

  	
  6.1.10

  	
  Use of Proceeds; Margin Stock;
  Section 20 Subsidiaries

  	
  62

  
	
   

  	
   

  	
  6.1.11

  	
  Full Disclosure

  	
  63

  
	
   

  	
   

  	
  6.1.12

  	
  Taxes

  	
  63

  
	
   

  	
   

  	
  6.1.13

  	
  Consents and Approvals

  	
  63

  
	
   

  	
   

  	
  6.1.14

  	
  No Event of Default; Compliance
  with Instruments

  	
  63

  
	
   

  	
   

  	
  6.1.15

  	
  Patents, Trademarks, Copyrights,
  Licenses, Etc.

  	
  64

  
	
   

  	
   

  	
  6.1.16

  	
  Insurance

  	
  64

  
	
   

  	
   

  	
  6.1.17

  	
  Compliance with Laws

  	
  64

  
	
   

  	
   

  	
  6.1.18

  	
  [Intentionally Omitted]

  	
  64

  
	
   

  	
   

  	
  6.1.19

  	
  Investment Companies; Regulated
  Entities

  	
  64

  
	
   

  	
   

  	
  6.1.20

  	
  Plans and Benefit Arrangements

  	
  64

  
	
   

  	
   

  	
  6.1.21

  	
  Employment Matters

  	
  65

  
	
   

  	
   

  	
  6.1.22

  	
  Environmental and Safety Matters

  	
  66

  

 

iii

 

	
   

  	
   

  	
  6.1.23

  	
  Senior Debt Status

  	
  66

  
	
   

  	
   

  	
  6.1.24

  	
  Anti-Terrorism Laws

  	
  66

  
	
   

  	
   

  	
  6.1.25

  	
  Solvency

  	
  67

  
	
   

  	
   

  	
  6.1.26

  	
  Security Interests

  	
  67

  
	
   

  	
   

  	
  6.1.27

  	
  Status of the Pledged Collateral

  	
  68

  
	
   

  	
  6.2

  	
  Continuation of Representations

  	
  68

  
	
   

  	
  6.3

  	
  Updates to Schedules

  	
  68

  
	
   

  	
   

  	
   

  
	
  7.

  	
  CONDITIONS OF LENDING AND ISSUANCE
  OF LETTERS OF CREDIT

  	
  68

  
	
   

  	
  7.1

  	
  First Loans and Letters of Credit

  	
  69

  
	
   

  	
   

  	
  7.1.1

  	
  Officer’s Certificate

  	
  69

  
	
   

  	
   

  	
  7.1.2

  	
  Secretary’s Certificate

  	
  69

  
	
   

  	
   

  	
  7.1.3

  	
  Delivery of Loan Documents

  	
  70

  
	
   

  	
   

  	
  7.1.4

  	
  Opinion of Counsel

  	
  70

  
	
   

  	
   

  	
  7.1.5

  	
  Legal Details

  	
  70

  
	
   

  	
   

  	
  7.1.6

  	
  Payment of Fees

  	
  70

  
	
   

  	
   

  	
  7.1.7

  	
  Consents

  	
  70

  
	
   

  	
   

  	
  7.1.8

  	
  Officer’s Certificate Regarding
  MACs; Solvency

  	
  70

  
	
   

  	
   

  	
  7.1.9

  	
  No Violation of Laws

  	
  71

  
	
   

  	
   

  	
  7.1.10

  	
  No Actions or Proceedings

  	
  71

  
	
   

  	
   

  	
  7.1.11

  	
  Compliance Certificate

  	
  71

  
	
   

  	
   

  	
  7.1.12

  	
  Lien Searches

  	
  71

  
	
   

  	
   

  	
  7.1.13

  	
  Filing Receipts

  	
  71

  
	
   

  	
   

  	
  7.1.14

  	
  Insurance

  	
  71

  
	
   

  	
   

  	
  7.1.15

  	
  Existing Agreement

  	
  72

  
	
   

  	
   

  	
  7.1.16

  	
  Other Conditions

  	
  72

  
	
   

  	
  7.2

  	
  Each Additional Loan or Letter of
  Credit

  	
  72

  
	
   

  	
   

  	
   

  
	
  8.

  	
  COVENANTS

  	
  72

  
	
   

  	
  8.1

  	
  Affirmative Covenants

  	
  72

  
	
   

  	
   

  	
  8.1.1

  	
  Preservation of Existence, Etc.

  	
  72

  
	
   

  	
   

  	
  8.1.2

  	
  Payment of Liabilities, Including
  Taxes, Etc.

  	
  73

  
	
   

  	
   

  	
  8.1.3

  	
  Maintenance of Insurance

  	
  73

  
	
   

  	
   

  	
  8.1.4

  	
  Maintenance of Properties and Leases

  	
  73

  
	
   

  	
   

  	
  8.1.5

  	
  Maintenance of Patents, Trademarks,
  Etc.

  	
  73

  
	
   

  	
   

  	
  8.1.6

  	
  Visitation Rights

  	
  73

  
	
   

  	
   

  	
  8.1.7

  	
  Keeping of Records and Books of
  Account

  	
  74

  
	
   

  	
   

  	
  8.1.8

  	
  Plans and Benefit Arrangements

  	
  74

  
	
   

  	
   

  	
  8.1.9

  	
  Compliance with Laws

  	
  74

  
	
   

  	
   

  	
  8.1.10

  	
  Use of Proceeds

  	
  74

  
	
   

  	
   

  	
  8.1.11

  	
  [Intentionally Omitted]

  	
  75

  
	
   

  	
   

  	
  8.1.12

  	
  Tax Shelter Regulations

  	
  75

  
	
   

  	
   

  	
  8.1.13

  	
  Anti-Terrorism Laws

  	
  75

  
	
   

  	
   

  	
  8.1.14

  	
  Further Assurances

  	
  75

  
	
   

  	
  8.2

  	
  Negative Covenants

  	
  75

  
	
   

  	
   

  	
  8.2.1

  	
  Indebtedness

  	
  76

  

 

iv

 

	
   

  	
   

  	
  8.2.2

  	
  Liens

  	
  77

  
	
   

  	
   

  	
  8.2.3

  	
  Guaranties

  	
  77

  
	
   

  	
   

  	
  8.2.4

  	
  Loans and Investments

  	
  77

  
	
   

  	
   

  	
  8.2.5

  	
  [Intentionally Omitted].

  	
  78

  
	
   

  	
   

  	
  8.2.6

  	
  Liquidations, Mergers,
  Consolidations, Acquisitions

  	
  78

  
	
   

  	
   

  	
  8.2.7

  	
  Dispositions of Assets or
  Subsidiaries

  	
  80

  
	
   

  	
   

  	
  8.2.8

  	
  [Intentionally Omitted].

  	
  81

  
	
   

  	
   

  	
  8.2.9

  	
  Subsidiaries, Partnerships and
  Joint Ventures

  	
  81

  
	
   

  	
   

  	
  8.2.10

  	
  Continuation of or Change in
  Business

  	
  81

  
	
   

  	
   

  	
  8.2.11

  	
  Plans and Benefit Arrangements

  	
  81

  
	
   

  	
   

  	
  8.2.12

  	
  Fiscal Year

  	
  82

  
	
   

  	
   

  	
  8.2.13

  	
  Changes in Organizational Documents

  	
  82

  
	
   

  	
   

  	
  8.2.14

  	
  [Intentionally Omitted]

  	
  82

  
	
   

  	
   

  	
  8.2.15

  	
  Maximum Leverage Ratio

  	
  82

  
	
   

  	
   

  	
  8.2.16

  	
  Minimum Interest Coverage Ratio

  	
  82

  
	
   

  	
  8.3

  	
  Reporting Requirements

  	
  82

  
	
   

  	
   

  	
  8.3.1

  	
  Quarterly Financial Statements

  	
  82

  
	
   

  	
   

  	
  8.3.2

  	
  Annual Financial Statements

  	
  83

  
	
   

  	
   

  	
  8.3.3

  	
  Certificate of the Borrower

  	
  83

  
	
   

  	
   

  	
  8.3.4

  	
  Notice of Default

  	
  84

  
	
   

  	
   

  	
  8.3.5

  	
  Notice of Litigation

  	
  84

  
	
   

  	
   

  	
  8.3.6

  	
  Agreements Regarding Pledged
  Collateral

  	
  84

  
	
   

  	
   

  	
  8.3.7

  	
  Budgets, Forecasts, Other Reports
  and Information

  	
  84

  
	
   

  	
   

  	
  8.3.8

  	
  Tax Shelter Provisions

  	
  85

  
	
   

  	
   

  	
  8.3.9

  	
  Notices Regarding Plans and Benefit
  Arrangements

  	
  85

  
	
   

  	
   

  	
   

  
	
  9.

  	
  DEFAULT

  	
  86

  
	
   

  	
  9.1

  	
  Events of Default

  	
  86

  
	
   

  	
   

  	
  9.1.1

  	
  Payments Under Loan Documents

  	
  87

  
	
   

  	
   

  	
  9.1.2

  	
  Breach of Warranty

  	
  87

  
	
   

  	
   

  	
  9.1.3

  	
  Breach of Negative Covenants or
  Visitation Rights

  	
  87

  
	
   

  	
   

  	
  9.1.4

  	
  Breach of Other Covenants

  	
  87

  
	
   

  	
   

  	
  9.1.5

  	
  Defaults in Other Agreements or
  Indebtedness

  	
  87

  
	
   

  	
   

  	
  9.1.6

  	
  Final Judgments or Orders

  	
  87

  
	
   

  	
   

  	
  9.1.7

  	
  Loan Document Unenforceable

  	
  88

  
	
   

  	
   

  	
  9.1.8

  	
  Uninsured Losses; Proceedings
  Against Assets

  	
  88

  
	
   

  	
   

  	
  9.1.9

  	
  Notice of Lien or Assessment

  	
  88

  
	
   

  	
   

  	
  9.1.10

  	
  Insolvency

  	
  88

  
	
   

  	
   

  	
  9.1.11

  	
  Events Relating to Plans and
  Benefit Arrangements

  	
  88

  
	
   

  	
   

  	
  9.1.12

  	
  Cessation of Business

  	
  89

  
	
   

  	
   

  	
  9.1.13

  	
  Change of Control

  	
  89

  
	
   

  	
   

  	
  9.1.14

  	
  Involuntary Proceedings

  	
  89

  
	
   

  	
   

  	
  9.1.15

  	
  Voluntary Proceedings

  	
  90

  
	
   

  	
  9.2

  	
  Consequences of Event of Default

  	
  90

  

 

v

 

	
   

  	
   

  	
  9.2.1

  	
  Events of Default Other Than
  Bankruptcy, Insolvency or Reorganization Proceedings

  	
  90

  
	
   

  	
   

  	
  9.2.2

  	
  Bankruptcy, Insolvency or
  Reorganization Proceedings

  	
  90

  
	
   

  	
   

  	
  9.2.3

  	
  Set-off

  	
  91

  
	
   

  	
   

  	
  9.2.4

  	
  Intentionally Omitted

  	
  91

  
	
   

  	
   

  	
  9.2.5

  	
  Application of Proceeds; Collateral
  Sharing

  	
  91

  
	
   

  	
   

  	
  9.2.6

  	
  Other Rights and Remedies

  	
  92

  
	
   

  	
   

  	
  9.2.7

  	
  Notice of Sale

  	
  92

  
	
   

  	
   

  	
   

  
	
  10.

  	
  THE AGENT

  	
  93

  
	
   

  	
  10.1

  	
  Appointment and Authority

  	
  93

  
	
   

  	
  10.2

  	
  Rights as a Lender

  	
  93

  
	
   

  	
  10.3

  	
  Exculpatory Provisions

  	
  93

  
	
   

  	
  10.4

  	
  Reliance by Agent

  	
  94

  
	
   

  	
  10.5

  	
  Delegation of Duties

  	
  94

  
	
   

  	
  10.6

  	
  Resignation of Agent

  	
  95

  
	
   

  	
  10.7

  	
  Non-Reliance on Administrative
  Agent and Other Lenders

  	
  95

  
	
   

  	
  10.8

  	
  Reimbursement and Indemnification
  of Agent by the Borrower

  	
  96

  
	
   

  	
  10.9

  	
  Exculpatory Provisions; Limitation
  of Liability

  	
  97

  
	
   

  	
  10.10

  	
  Reimbursement and Indemnification
  of Agent by Lenders

  	
  97

  
	
   

  	
  10.11

  	
  Equalization of Lenders

  	
  98

  
	
   

  	
  10.12

  	
  Agent’s Fee

  	
  99

  
	
   

  	
  10.13

  	
  Availability of Funds

  	
  99

  
	
   

  	
  10.14

  	
  Calculations

  	
  99

  
	
   

  	
  10.15

  	
  No Reliance on Agent’s Customer
  Identification Program

  	
  100

  
	
   

  	
  10.16

  	
  Certain Releases of Pledged
  Collateral

  	
  100

  
	
   

  	
   

  	
   

  
	
  11.

  	
  MISCELLANEOUS

  	
  100

  
	
   

  	
  11.1

  	
  Modifications, Amendments or
  Waivers

  	
  100

  
	
   

  	
   

  	
  11.1.1

  	
  Increase of Commitment; Extension
  of Expiration Date

  	
  101

  
	
   

  	
   

  	
  11.1.2

  	
  Extension of Payment; Reduction of
  Principal Interest or Fees; Modification of Terms of Payment

  	
  101

  
	
   

  	
   

  	
  11.1.3

  	
  Release of Collateral or Guarantor

  	
  101

  
	
   

  	
   

  	
  11.1.4

  	
  Miscellaneous

  	
  101

  
	
   

  	
  11.2

  	
  No Implied Waivers; Cumulative
  Remedies; Writing Required

  	
  101

  
	
   

  	
  11.3

  	
  Reimbursement and Indemnification
  of Lenders by the Borrower; Taxes

  	
  102

  
	
   

  	
  11.4

  	
  Holidays

  	
  103

  
	
   

  	
  11.5

  	
  Funding by Branch, Subsidiary or
  Affiliate

  	
  103

  
	
   

  	
   

  	
  11.5.1

  	
  Notional Funding

  	
  103

  
	
   

  	
   

  	
  11.5.2

  	
  Actual Funding

  	
  103

  
	
   

  	
  11.6

  	
  Notices; Effectiveness; Electronic
  Communication

  	
  104

  
	
   

  	
   

  	
  11.6.1

  	
  Notices Generally

  	
  104

  
	
   

  	
   

  	
  11.6.2

  	
  Electronic Communications

  	
  104

  
	
   

  	
   

  	
  11.6.3

  	
  Change of Address, Etc.

  	
  105

  
	
   

  	
  11.7

  	
  Severability

  	
  105

  
	
   

  	
  11.8

  	
  Governing Law

  	
  105

  

 

vi

 

	
   

  	
  11.9

  	
  Prior Understanding

  	
  105

  
	
   

  	
  11.10

  	
  Duration; Survival

  	
  105

  
	
   

  	
  11.11

  	
  Successors and Assigns

  	
  106

  
	
   

  	
   

  	
  11.11.1

  	
  Successors and Assigns Generally

  	
  106

  
	
   

  	
   

  	
  11.11.2

  	
  Assignments by Lenders

  	
  106

  
	
   

  	
   

  	
  11.11.3

  	
  Register

  	
  108

  
	
   

  	
   

  	
  11.11.4

  	
  Participations

  	
  108

  
	
   

  	
   

  	
  11.11.5

  	
  Limitations upon Participant Rights
  Successors and Assigns Generally

  	
  109

  
	
   

  	
   

  	
  11.11.6

  	
  Certain Pledges; Successors and
  Assigns Generally

  	
  109

  
	
   

  	
  11.12

  	
  Confidentiality

  	
  109

  
	
   

  	
   

  	
  11.12.1

  	
  General

  	
  109

  
	
   

  	
   

  	
  11.12.2

  	
  Sharing Information With Affiliates
  of the Lenders

  	
  110

  
	
   

  	
  11.13

  	
  Counterparts

  	
  110

  
	
   

  	
  11.14

  	
  Agent’s or Lender’s Consent

  	
  110

  
	
   

  	
  11.15

  	
  Exceptions

  	
  110

  
	
   

  	
  11.16

  	
  Consent To Forum; Waiver Of Jury
  Trial

  	
  111

  
	
   

  	
   

  	
  11.16.1

  	
  Submission To Jurisdiction

  	
  111

  
	
   

  	
   

  	
  11.16.2

  	
  Waiver Of Venue

  	
  111

  
	
   

  	
   

  	
  11.16.3

  	
  Service Of Process

  	
  111

  
	
   

  	
   

  	
  11.16.4

  	
  Waiver Of Jury Trial

  	
  112

  
	
   

  	
  11.17

  	
  USA Patriot Act. Certification from
  Lenders and Participants

  	
  112

  
	
   

  	
  11.18

  	
  Joinder of Guarantors

  	
  112

  

 

vii

 

CREDIT AGREEMENT

 

THIS CREDIT AGREEMENT is
dated as of June 16, 2009, and is made by and among COVANCE INC., a
Delaware corporation, each of the GUARANTORS (as hereinafter defined), the
LENDERS (as hereinafter defined), and PNC BANK, NATIONAL ASSOCIATION, in its
capacity as agent for the Banks under this Agreement.

 

WITNESSETH:

 

WHEREAS, the Borrower has
requested the Lenders to provide a multicurrency revolving credit facility to
the Borrower in an aggregate principal amount not to exceed $150,000,000.00;
and

 

WHEREAS, the revolving
credit shall be used to finance existing Indebtedness and for general corporate
purposes of the Borrower; and

 

WHEREAS, the Lenders are
willing to provide such credit upon the terms and conditions hereinafter set
forth;

 

NOW, THEREFORE, the
parties hereto, in consideration of their mutual covenants and agreements
hereinafter set forth and intending to be legally bound hereby, covenant and
agree as follows:

 

1.                                       CERTAIN DEFINITIONS

 

1.1                                 Certain Definitions.

 

In addition to words and
terms defined elsewhere in this Agreement, the following words and terms shall
have the following meanings, respectively, unless the context hereof clearly
requires otherwise:

 

Additional Lender has the meaning assigned to such term in
Section 11.11 [Successors and
Assigns].

 

Affiliate as to any Person means any other Person which
directly or indirectly controls, is controlled by, or is under common control
with such Person.  Control,
as used in this definition, means the possession, directly or indirectly, of
the power to:  (i) direct or cause
the direction of the management or policies of a Person, whether through the
ownership of voting securities, by contract or otherwise, including the power
to elect a majority of the directors or trustees of a corporation or trust, as
the case may be, or (ii) vote 15% or more of the securities having
ordinary voting power for the election of directors (or persons performing
similar functions) of such Person. 
Notwithstanding the foregoing:  (i) the
Borrower and its Subsidiaries shall not be Affiliates of each other, (ii) neither
the Borrower nor any of its Subsidiaries shall be 

 

 

an Affiliate of the Agent or any Lender, and (iii) so long as the
Borrower and its Subsidiaries own in the aggregate less than 23% of the voting
capital stock of BioImaging Technologies, Inc. (“BTI”),
BTI shall not be an Affiliate of the Borrower or any Subsidiary of the
Borrower.

 

Agent means PNC Bank, National Association, and its
successors and assigns.

 

Agent’s Fee has the meaning assigned to that term in Section 10.12 [Agent’s Fee].

 

Agent’s Letter has the meaning assigned to that term in Section 10.12 [Agent’s Fee].

 

Agreement means this Credit Agreement, as the same may be
supplemented or amended from time to time, including all schedules and
exhibits.

 

Annual Statements  has the meaning assigned to that term in Section 6.1.9(i) [Historical
Statements].

 

Anti-Terrorism Laws means any Laws relating to terrorism or
money laundering, including Executive Order No. 13224, the USA Patriot
Act, the Laws comprising or implementing the Bank Secrecy Act, and the Laws
administered by the United States Treasury Department’s Office of Foreign Asset
Control (as any of the foregoing Laws may from time to time be amended,
renewed, extended, or replaced).

 

Applicable Commitment Fee Rate means the percentage rate per annum at
the indicated level of Leverage Ratio then in effect as set forth in the
pricing grid on Schedule 1.1(A) below
the heading “Commitment Fee.”  The
Applicable Commitment Fee Rate shall be computed in accordance with Section 2.4 [Commitment Fees]
and the parameters set forth on Schedule 1.1(A).

 

Applicable Letter of Credit Fee means the percentage rate per annum at
the indicated level of Leverage Ratio then in effect as set forth in the
pricing grid on Schedule 1.1(A) below
the heading “Letter of Credit Fee”.  The
Applicable Letter of Credit Fee shall be computed in accordance with the
parameters set forth on Schedule 1.1(A).

 

Applicable Margin means, as applicable:

 

(i)                                     the percentage rate spread at the
indicated level of Leverage Ratio then in effect as set forth in the pricing
grid on Schedule 1.1(A) below the
heading “Revolving Credit Base Rate Spread”, and

 

(ii)                                  the percentage rate spread at the
indicated level of Leverage Ratio then in effect as set forth in the pricing
grid on Schedule 1.1(A) below the
heading “Revolving Credit Euro-Rate Spread”.

 

2

 

The Applicable
Margin shall be computed in accordance with the parameters set forth on Schedule 1.1(A).

 

Approved
Fund  means any fund that is engaged in making,
purchasing, holding or investing in bank loans and similar extensions of credit
in the ordinary course of business and that is administered or managed by (i) a
Lender, (ii) an Affiliate of a Lender or (iii) an entity or an
Affiliate of an entity that administers or manages a Lender.

 

Assignment
and Assumption Agreement means an Assignment and Assumption Agreement by and
among a Purchasing Lender, a Transferor Lender and the Agent, as Agent and on
behalf of the remaining Lender, substantially in the form of Exhibit 1.1(A).

 

Authorized
Officer means
those individuals, designated by written notice to the Agent from the Borrower,
authorized to execute notices, reports and other documents on behalf of the
Loan Parties required hereunder.  The
Borrower may amend such list of individuals from time to time by giving written
notice of such amendment to the Agent.

 

Base Rate means the greatest, from time to time,
of (i) the interest rate per annum announced from time to time by the
Agent at its Principal Office as its then prime rate, which rate may not be the
lowest rate then being charged commercial borrowers by the Agent, (ii) the
Federal Funds Open Rate plus 1⁄2% per annum, or (iii) the Daily Euro-Rate
plus 1%. Any change in the Base Rate (or any component thereof) shall take
effect at the opening of business on the day such change occurs.

 

Base Rate
Option means
the option of the Borrower to have Revolving Credit Loans bear interest at the
rate and under the terms and conditions set forth in Section 4.1.1(i) [Revolving
Credit Base Rate Option].

 

Benefit
Arrangement
means at any time an “employee benefit plan,” within the meaning of Section 3(3) of ERISA,
which is neither a Plan nor a Multiemployer Plan and which is maintained,
sponsored or otherwise contributed to by any member of the ERISA Group.

 

Benefit
Plans means (i) the
Covance 401(k) Savings Plan, (ii) the Employee Stock Purchase Plan of
Covance, Inc., (iii) the 2007 Employee Equity Participation Plan of
the Borrower, (iv) the 2002 Employee Stock Option Plan of the Borrower, (v) the
Stock Option Plan for Non-Employee Directors of the Borrower, (vi) the Restricted
Stock Plan for Non-Employee Directors of the Borrower, (vii) the Deferred
Stock Unit Plan for Non-Employee Members of the Board of Directors of the
Borrower, (viii) any other “pension plan” (as defined in Section 3(2) of ERISA) of
the Borrower or any member of the ERISA Group, any of the Guarantors or any
Subsidiary of any of the Loan Parties, existing as of the date of this
Agreement or hereafter, or any trust created thereunder, and (ix) any
other benefit plan, whether or not treated as such under Section 3(2) or
any other Section of ERISA, existing as of the date of this Agreement or
hereafter created, with respect to which any capital stock, debt or similar
interest or instrument or security interest or instrument, whether or not
treated as such under applicable Law, of the Borrower, any member of the ERISA
Group, any of the Guarantors or any Subsidiary 

 

3

 

of any of the Loan
Parties is an investment, distribution, benefit or award option or plan feature
for any individual, including, but not limited to, any benefit plan similar to
a plan described in (i) through (vii) above, or any trust created
under any benefit plan described in this clause (ix).

 

Blocked
Person has
the meaning assigned to such term in Section 6.1.24.5
[Execution Order No. 13224].

 

Borrower means Covance Inc., a corporation
organized and existing under the laws of the State of Delaware, and its
successors and assigns.

 

Borrowing
Date means,
with respect to any Loan, the date for the making thereof or the renewal or
conversion thereof at or to the same or a different Interest Rate Option, which
shall be a Business Day.

 

Borrowing
Tranche means
specified portions of Loans outstanding as follows:  (i) any Loans to which a Euro-Rate
Option applies which become subject to the same Interest Rate Option under the
same Loan Request by the Borrower and which have the same Interest Period and
which are denominated either in Dollars or in the same Optional Currency shall
constitute one Borrowing Tranche, and (ii) all Loans to which a Base Rate
Option applies shall constitute one Borrowing Tranche.

 

Business
Day means any
day other than a Saturday or Sunday or a legal holiday on which commercial
banks are authorized or required to be closed for business in Pittsburgh,
Pennsylvania, and (i) if the applicable Business Day relates to any Loan
to which the Euro-Rate Option applies, such day must also be a day on which
dealings are carried on in the London interbank market,  (ii) with respect to advances or
payments of Loans or any other matters relating to Loans denominated in an
Optional Currency, such day also shall be a day on which dealings in deposits
in the relevant Optional Currency are carried on in the applicable interbank
market, and (iii) with respect to advances or payments of Loans
denominated in an Optional Currency, such day shall also be a day on which all
applicable banks into which Loan proceeds may be deposited are open for
business and foreign exchange markets are open for business in the principal
financial center of the country of such currency.

 

Capital
Lease means
the lease of any assets which lease would be a capital lease as determined in
accordance with GAAP.

 

Cash
Collateralize
means to pledge and deposit with or deliver to Agent, for the benefit of Agent
and the Lenders, as collateral for the Letter of Credit Outstanding, cash or
deposit account balances pursuant to documentation satisfactory to Agent (which
documents are hereby consented to by the Lenders). Such cash collateral shall
be maintained in blocked, non-interest bearing deposit accounts at the Agent.

 

Cash
Pooling Obligations means those ordinary course obligations of certain Foreign
Subsidiaries under treasury management cash pooling agreements with various
financial institutions as in effect on the Closing Date or arrangements
substantially similar thereto, as any of the foregoing may be renewed, replaced
or extended from time to time.

 

4

 

Change in
Law means the
occurrence, after the date of this Agreement, of any of the following: (i) the
adoption or taking effect of any Law, (ii) any change in any Law or in the
administration, interpretation or application thereof by any Official Body or (iii) the
making or issuance of any request, guideline or directive (whether or not
having the force of Law) by any Official Body.

 

Closing
Date means
the Business Day on which the first Loan shall be made, which shall be June 16,
2009.

 

Collateral
Agent has the
meaning assigned to such term in Section 9.2.5.2
[Collateral Sharing].

 

Collateral
Documents has
the meaning assigned to such term in Section 9.2.5.2
[Collateral Sharing].

 

Commercial
Letter of Credit
means any letter of credit which is a commercial letter of credit issued in
respect of the purchase of goods or services by one or more of the Loan Parties
in the ordinary course of their business.

 

Commitment means as to any Lender of its Revolving
Credit Commitment and, in the case PNC Bank, its Swing Loan Commitment, and Commitments shall mean the
aggregate of the Revolving Credit Commitments of all of the Lenders and Swing
Loan Commitment.

 

Commitment
Fee has the
meaning assigned to that term in Section 2.4
[Commitment Fees].

 

Commitment
Reduction Notice
has the meaning assigned to that term in Section 5.4.4
[Voluntary Reduction of Revolving Credit Commitments].

 

Compliance
Certificate
has the meaning assigned to such term in Section 8.3.3
[Certificate of the Borrower].

 

Computation
Date has the
meaning assigned to such term in Section 2.11.1
[Periodic Computations of Dollar Equivalent Amounts of Loans and Letters of
Credit Outstanding].

 

Consolidated
EBIT means,
for any period of determination, with respect to the Borrower and its
Subsidiaries as determined in accordance with GAAP on a consolidated basis, the
sum of (i) Consolidated Net Income for such period (excluding the effect
of any extraordinary or other non-recurring gains or losses outside of the
ordinary course of business), plus (ii) an amount which, in the determination
of Consolidated Net Income for such period, has been deducted for (a) Consolidated
Interest Expense for such period and (b) total Federal, state, foreign or
other income taxes for such period, all as determined in accordance with GAAP.

 

Consolidated
EBITDA means,
for any period of determination, with respect to the Borrower and its
Subsidiaries as determined in accordance with GAAP on a 

 

5

 

consolidated
basis, an amount equal to (i) Consolidated EBIT minus an amount which, in
the determination of Consolidated Net Income for such period, has been included
for all non-cash credits for such period, plus (ii) an amount which, in
the determination of Consolidated Net Income for such period, has been deducted
for all depreciation, amortization and other non-cash charges for such period,
all as determined in accordance with GAAP.

 

Consolidated
Interest Expense
for any period of determination means interest expense (net of interest income,
if any) of the Borrower and its Subsidiaries for such period determined and
consolidated in accordance with GAAP.

 

Consolidated
Net Income
means, for any period of determination, the net income after taxes for such
period of the Borrower and its Subsidiaries as determined on a consolidated
basis in accordance with GAAP.

 

Consolidated
Net Worth
means as of any date of determination total stockholders’ equity of the
Borrower and its Subsidiaries as of such date determined and consolidated in
accordance with GAAP.

 

Consolidated
Subsidiary
means each Person (excluding therefrom each Excluded Subsidiary) which is a
Subsidiary of the Borrower.

 

Contamination means the presence or release or threat
of release of Regulated Substances in, on, under or migrating to or from the
Property, which pursuant to Environmental Laws requires notification or
reporting to an Official Body, or which pursuant to Environmental Laws requires
the performance of a Remedial Action or which otherwise constitutes a violation
of Environmental Laws.

 

Daily
Euro-Rate
means, for any day, the rate per annum determined by the Agent by dividing (i) the
Published Rate by (ii) a number equal to 1.00 minus the Euro-Rate Reserve
Percentage on such day.

 

Defaulting
Lender means
any Lender that (i) has failed to fund any portion of the Loans,
participations with respect to Letters of Credit, or participations in Swing
Loans required to be funded by it hereunder within one (1) Business Day of
the date required to be funded by it hereunder unless such failure has been
cured and all interest accruing as a result of such failure has been fully paid
in accordance with the terms hereof, (ii) has otherwise failed to pay over
to the Agent or any other Lender any other amount required to be paid by it
hereunder within one Business Day of the date when due, unless the subject of a
good faith dispute or unless such failure has been cured and all interest
accruing as a result of such failure has been fully paid in accordance with the
terms hereof, or (iii) has or any Lender that has a parent entity that has
since the date of this Agreement been deemed insolvent by an Official Body or
become the subject of a bankruptcy, receivership, conservatorship or insolvency
proceeding.

 

Delinquent
Lender has
the meaning assigned to such term in Section 10.11
[Equalization of Lenders].

 

6

 

Dollar,
Dollars, U.S. Dollars and the symbol $ means
lawful money of the United States of America.

 

Dollar
Equivalent
means, with respect to any amount of any currency, the Equivalent Amount of
such currency expressed in Dollars.

 

Dollar
Equivalent Revolving Facility Usage means at any time the sum of the Dollar Equivalent
amount of Revolving Credit Loans then outstanding, the Dollar Equivalent of
Swing Loans then outstanding and the Dollar Equivalent amount of Letters of
Credit Outstanding.

 

Domestic
Subsidiary
means any Subsidiary of the Borrower that is incorporated or organized under
the laws of the United States of America or one of the states or territories
thereof.

 

Drawing
Date has the
meaning assigned to that term in Section 2.10.3.2.

 

Environmental
Complaint
means (i) any written notice of non-compliance or violation, order or
citation relating in any way to any Environmental Law, Required Environmental
Permit, Contamination or Regulated Substances; (ii) civil, criminal,
administrative or regulatory investigation of which the Borrower or any
Subsidiary of the Borrower has knowledge instituted by an Official Body
relating in any way to any Environmental Law, Environmental Permit,
Contamination or Regulated Substance; (iii) any administrative, regulatory
or judicial action, suit, claim or proceeding instituted by any Person or
Official Body or any written notice of liability or potential liability by any
Person or Official Body, in either instance, setting forth a cause of action
for personal injury (including but not limited to death), property damage,
natural resource damage, contribution or indemnity associated with the
performance of Remedial Actions, liens or encumbrances attached to, recorded or
levied against a Property for the costs associated with the performance of
Remedial Actions, civil or administrative penalties, criminal fines or
penalties, or declaratory or equitable relief arising under any Environmental Laws;
or (iv) any written order, notice of violation, citation, subpoena,
request for information or other written notice or demand of any type issued by
an Official Body arising out of or in response to a violation of any
Environmental Laws relating to any Property, any Loan Party or any Subsidiary
of any Loan Party.

 

Environmental
Laws means
all federal, territorial, tribal, state, local and foreign Laws (including, but
not limited to, the Comprehensive Environmental Response, Compensation and
Liability Act, 42 U.S.C. §§ 9601 et seq., the Resource Conservation and
Recovery Act, 42 U.S.C. § 6901 et seq., the Hazardous Materials
Transportation Act, 49 U.S.C. § 1801 et seq., the Toxic Substances Control
Act, 15 U.S.C. § 2601 et seq., the Federal Water Pollution Control Act, 33
U.S.C. §§ 1251 et seq., the Federal Safe Drinking Water Act, 42 U.S.C.
§§ 300f-300j, the Federal Air Pollution Control Act, 42 U.S.C. § 7401
et seq., the Oil Pollution Act, 33 U.S.C. § 2701 et seq., the Federal
Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. §§ 136 to 136y,
Atomic Energy Act, 42 U.S.C. § 2011 et seq., the Energy Reorganization Act
of 1974 (88 Stat. 1244), the Nuclear Waste Policy Act 42 U.S.C. § 10101 et
seq., the Low-Level Radioactive Waste Policy Amendments Act of 1985 (99 Stat.
1842)) each as 

 

7

 

amended, and any
regulations promulgated or any equivalent state or local Law, and any
amendments thereto) and any consent decrees, settlement agreements, judgments,
orders, directives, policies or programs issued by or entered into with an
Official Body pertaining or relating to: (i) pollution or pollution
control; (ii) protection of human health from exposure to Regulated
Substances; (iii) protection of the environment and/or natural resources; (iv) the
presence, use, management, generation, manufacture, processing, extraction,
treatment, recycling, refining, reclamation, labeling, sale, transport,
storage, collection, distribution, disposal or release or threat of release of
Regulated Substances; (v) the presence of Contamination; and (vi) the
protection of endangered or threatened species.

 

Equivalent
Amount means,
at any date, as determined by Agent (which determination shall be conclusive
absent manifest error), (i) with respect to an amount which is to be
denominated in Dollars:

 

(a)                                  as to any portion of such amount
denominated in an Optional Currency, the amount of Dollars converted from the
amount of each relevant Optional Currency at the rate at which
such Optional Currency may be exchanged into Dollars, as set forth at
approximately 11:00 a.m., London or such other applicable time, on such
date by reference to the Bloomberg Financial Markets system for
such Optional Currency (or other authoritative source selected by the
Agent in its sole discretion) or, in the event of the unavailability of any
such source, the exchange rate shall instead be the spot rate of
exchange of the Agent in the market where its foreign currency exchange
operations in respect of such Optional Currency are then being conducted,
at or about 11:00 a.m. at the place of such market, on such date for the
purchase of Dollars for delivery two Business Days later; provided  that
if at the time of any such determination, for any reason, no such spot rate is
being quoted, the Agent may use any reasonable method it deems appropriate to
determine such rate, and such determination shall be conclusive absent manifest
error, plus:

 

(b)                                 as to any portion of such amount already
denominated in Dollars, the amount thereof at such time; and

 

(ii)                                  with respect to an amount which is to be
denominated in an Optional Currency;

 

(a)                                  as to any portion of such amount
denominated in Dollars, the amount of such Optional Currency converted from the
relevant amount of Dollars at the rate at which Dollars may be exchanged
into such Optional Currency, as set forth at approximately 11:00 a.m.,
London or such other applicable time, on such date by reference to the
Bloomberg Financial Markets system for such Optional Currency (or other authoritative
source selected by the Agent in its sole discretion) or, in the event of the
unavailability of any such source, the exchange rate shall instead be
the spot rate of exchange of the Agent in the market where its foreign currency
exchange operations in respect of such Optional Currency are then being
conducted, at or about 11:00 a.m. at the place of such market, on such
date for the purchase of such Optional Currency for delivery two Business
Days later; provided  that if at the time of any such determination,
for any reason, no such spot rate is being quoted, the Agent may use any 

 

8

 

reasonable method
it deems appropriate to determine such rate, and such determination shall be
conclusive absent manifest error, plus

 

(b)                                 as to any portion of such amount already
denominated in such Optional Currency, the amount thereof as of such time.

 

ERISA means the Employee Retirement Income
Security Act of 1974, as the same may be amended or supplemented from time to
time, and any successor statute of similar import, and the rules and
regulations thereunder, as from time to time in effect.

 

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

 

Euro-Rate means (i) with respect to Dollar
Loans comprising any Borrowing Tranche to which the Euro-Rate Option applies
for any Interest Period, the interest rate per annum determined by the Agent by
dividing (the resulting quotient rounded upwards, if necessary, to the nearest
1/100th of 1% per annum) (a) the rate which appears on the Bloomberg Page BBAM1
(or on such other substitute Bloomberg Page that displays rates at which
Dollar deposits are offered by leading banks in the London interbank deposit
market), or the rate which is quoted by another source selected by the Agent
which has been approved by the British Bankers’ Association as an authorized
information vendor for the purpose of displaying rates at which Dollar deposits
are offered by leading banks in the London interbank deposit market (an “Alternative Source”), at
approximately 11:00 a.m., London time, two (2) Business Days prior to
the first day of such Interest Period as the London interbank offered rate for
Dollars for an amount comparable to such Borrowing Tranche and having a
borrowing date and a maturity comparable to such Interest Period  (or if there shall at any time, for any
reason, no longer exist a Bloomberg Page BBAM1, or any substitute page, or
any Alternate Source, a comparable replacement rate determined by the Agent at
such time, which determination shall be conclusive absent manifest error) by (b) a
number equal to 1.00 minus the Euro-Rate Reserve Percentage.  Such Euro-Rate may also be expressed by the
following formula:

 

	
  Euro-Rate
  =

  	
  Average of London interbank offered rates quoted

  
	
   

  	
  by Bloomberg or appropriate successor as shown on

  
	
   

  	
  Bloomberg Page BBAM1

  	
  1.00 - Euro-Rate Reserve Percentage

  

 

The Euro-Rate
shall be adjusted with respect to any Loan to which the Euro-Rate Option
applies that is outstanding on the effective date of any change in the
Euro-Rate Reserve Percentage as of such effective date.  The Agent shall give prompt notice to the
Borrower of the Euro-Rate as determined or adjusted in accordance herewith,
which determination shall be conclusive absent manifest error;

 

(ii)                                  with respect to Optional Currency Loans
comprising any Borrowing Tranche to which the Euro-Rate Option applies for any
Interest Period, the interest 

 

9

 

rate per annum
determined by Agent by dividing (the resulting quotient rounded upwards, if
necessary, to the nearest 1/100th of 1% per annum) (a) the rate of
interest per annum determined by Agent in accordance with its usual procedures
(which determination shall be conclusive absent manifest error) to be the rate
of interest per annum for deposits in the relevant Optional Currency which
appears on the relevant Bloomberg Page (or, if no such quotation is
available on such Bloomberg Page, on the appropriate such other substitute
Bloomberg Page that displays rates at which the relevant Optional Currency
deposits are offered by leading banks in the London interbank deposit market)
or the rate that is quoted by another source selected by the Agent which has
been approved by the British Bankers’ Association as an authorized information
vendor for the purposes of displaying such rates at which such Optional
Currency deposits are offered by leading banks in the London interbank deposit
market) at approximately 9:00 a.m., Pittsburgh time, two (2) Business
Days prior to the first day of such Interest Period for delivery on the first
day of such Interest Period for a period, and in an amount, comparable to such
Interest Period and principal amount of such Borrowing Tranche (“OC Rate”) by (b) a number
equal to 1.00 minus the Euro-Rate Reserve Percentage.  Such Euro-Rate may also be expressed by the
following formula:

 

	
              Euro-Rate

  	
  =

  	
  OC Rate

  	
   

  
	
   

  	
   

  	
  1 - Euro-Rate
  Reserve Percentage

  	
   

  

 

The Euro-Rate shall be adjusted with respect to any Euro-Rate Option
outstanding on the effective date of any change in the Euro-Rate Reserve
Percentage as of such effective date. 
The Agent shall give prompt notice to the Borrower of the Euro-Rate as
determined or adjusted in accordance herewith, which determination shall be
conclusive absent manifest error.  The
Euro-Rate for any Loans shall be based upon the Euro-Rate for the currency in
which such Loans are requested.

 

Euro-Rate
Option means
the option of the Borrower to have Revolving Credit Loans bear interest at the
rate and under the terms and conditions set forth in Section 4.1.1(ii) [Revolving
Credit Euro-Rate Option].

 

Euro-Rate
Reserve Percentage means as of any day the maximum percentage in effect on such day: (i) as
prescribed by the Board of Governors of the Federal Reserve System (or any
successor) for determining the reserve requirements (including supplemental,
marginal and emergency reserve requirements) with respect to eurocurrency
funding (currently referred to as “Eurocurrency Liabilities”); and (ii) to
be maintained by a Lender as required for reserve liquidity, special deposit,
or a similar purpose by any governmental or monetary authority of any country
or political subdivision thereof (including any central bank), against (a) any
category of liabilities that includes deposits by reference to which a
Euro-Rate is to be determined, or (b) any category of extension of credit
or other assets that includes Loans or Borrowing Tranches to which a Euro-Rate
applies.

 

Event of
Default means
any of the events described in Section 9.1
[Events of Default] and referred to therein as an “Event of Default.”

 

10

 

Excluded
Subsidiary
means any Person in which any Loan Party or any Subsidiary of any Loan Party
has made an Investment permitted by Section 8.2.4(v) and
which Person, as provided in the definition of Subsidiary, the Loan Parties
shall have elected to not treat as a Subsidiary for purposes of the Loan
Documents.

 

Excluded
Taxes means,
with respect to the Agent, any Lender or any other recipient of any payment to
be made by or on account of any obligation of the Borrower hereunder, (i) taxes
imposed on or measured by its overall net income (however denominated), and
franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction
(or any political subdivision thereof) under the Laws of which such recipient
is organized or in which its principal office is located or, in the case of any
Lender, in which its applicable lending office is located, (ii) any branch
profits taxes imposed by the United States of America or any similar tax
imposed by any other jurisdiction in which the Borrower is located and (iii) in
the case of a Foreign Lender, any withholding tax that is imposed on amounts
payable to such Foreign Lender at the time such Foreign Lender becomes a party
hereto (or designates a new lending office) or is attributable to such Foreign
Lender’s failure or inability (other than as a result of a Change in Law) to
comply with Section 5.6.5 [Status of
Lenders], except to the extent that such Foreign Lender (or its assignor, if
any) was entitled, at the time of designation of a new lending office (or
assignment), to receive additional amounts from the Borrower with respect to
such withholding tax pursuant to Section 5.6.1 [Payment
Free of Taxes].

 

Executive
Order No. 13224 means Executive Order No. 13224 on Terrorist Financing, effective
September 24, 2001, as the same has been, or shall hereafter be, renewed,
extended, amended or replaced.

 

Existing
Letter of Credit
means the letters of credit previously issued at the request of the Borrower by
PNC Bank, which existing letters of credit are identified on Schedule 1.1(C) attached
hereto and made a part hereof.

 

Expiration
Date means June 16,
2012.

 

Federal
Funds Effective Rate for any day means the rate per annum (based on a year of 360 days and
actual days elapsed and rounded upward to the nearest 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 date of
this Agreement; provided, if such Federal Reserve Bank (or its
successor) does not announce such rate on any day, the “Federal Funds Effective
Rate” for such day shall be the Federal Funds Effective Rate for the last day
on which such rate was announced.

 

Federal
Funds Open Rate
for any day means the rate per annum (based on a year of 360 days and actual
days elapsed) which is the daily federal funds open rate as quoted by ICAP
North America, Inc. (or any successor) as set forth on the Bloomberg
Screen BTMM for that day opposite the caption “OPEN” (or on such other
substitute Bloomberg Screen 

 

11

 

that displays such
rate), or as set forth on such other recognized electronic source used for the
purpose of displaying such rate as selected by the Agent (an “Alternate Source”) (or if such rate
for such day does not appear on the Bloomberg Screen BTMM (or any substitute
screen) or on any Alternate Source, or if there shall at any time, for any
reason, no longer exist a Bloomberg Screen BTMM (or any substitute screen) or
any Alternate Source, a comparable replacement rate determined by the Agent at
such time (which determination shall be conclusive absent manifest error); provided
however, that if such day is not a Business Day, the Federal Funds Open
Rate for such day shall be the “open” rate on the immediately preceding
Business Day. If and when the Federal Funds Open Rate changes, the rate of
interest with respect to any advance to which the Federal Funds Open Rate
applies will change automatically without notice to the Borrower, effective on
the date of any such change.

 

First
Tier Foreign Subsidiary means, at any date of determination, each Foreign
Subsidiary in which any one or more of the Borrower and/or any of its Domestic
Subsidiaries owns more than 50%, in the aggregate, of the Voting Stock of such
Foreign Subsidiary.

 

Foreign
Lender means
any Lender that is organized under the Laws of a jurisdiction other than that
in which the Borrower is resident for tax purposes.  For purposes of this definition, the United
States of America, each State thereof and the District of Columbia shall be
deemed to constitute a single jurisdiction.

 

Foreign
Subsidiary
means any Subsidiary of the Borrower which is not a Domestic Subsidiary.

 

GAAP means generally accepted accounting
principles as are in effect in the United States from time to time, subject to
the provisions of Section 1.3
[Accounting Principles], and applied on a consistent basis both as to
classification of items and amounts.

 

Governmental
Acts has the
meaning assigned to that term in Section 2.10.8
[Indemnity].

 

Guarantor means each of the parties to this
Agreement which is designated as a “Guarantor” on the signature page hereof
and each other Person which joins this Agreement as a Guarantor after the date
hereof pursuant to Section 11.18
[Joinder of Guarantors].

 

Guarantor
Joinder means
a joinder by a Person as a Guarantor under this Agreement, the Guaranty
Agreement and the other Loan Documents in the form of Exhibit 1.1(G)(1).

 

Guaranty of any Person means any obligation of
such Person guaranteeing or in effect guaranteeing any liability or obligation
of any other Person in any manner, whether directly or indirectly, including
any agreement to indemnify or hold harmless any other Person, any performance
bond or other suretyship arrangement and any other form of 

 

12

 

assurance against
loss, except endorsement of negotiable or other instruments for deposit or
collection in the ordinary course of business.

 

Guaranty
Agreement
means the Guaranty and Suretyship Agreement in substantially the form of Exhibit 1.1(G)(2) executed
and delivered by each of the Guarantors to the Agent for the benefit of the
Lenders.

 

Hedge means an interest rate or currency swap,
collar, cap, adjustable strike cap, adjustable strike corridor or similar
agreements entered into by the Loan Parties or their Subsidiaries in the
ordinary course of business and not for speculative purpose, in order to
provide protection to, or minimize the impact upon, the Borrower, the Guarantor
and/or their Subsidiaries of increasing floating rates of interest applicable to
Indebtedness or fluctuations in exchange rates, as the case may be.

 

Historical
Statements
has the meaning assigned to that term in Section 6.1.9(i) [Historical
Statements].

 

Indebtedness means, as to any Person at any time, any
and all indebtedness, obligations or liabilities (whether matured or unmatured,
liquidated or unliquidated, direct or indirect, absolute or contingent, or
joint or several) of such Person for or in respect of:  (i) borrowed money, (ii) amounts
raised under or liabilities in respect of any note purchase or acceptance
credit facility, (iii) reimbursement obligations (contingent or otherwise)
under any letter of credit, whether for amounts drawn or available to be drawn
thereunder, (iv) net reimbursement obligations (contingent or otherwise)
under any currency swap agreement, interest rate swap, cap, collar or floor
agreement or other interest rate management device, (v) any other
transaction (including forward sale or purchase agreements, capitalized leases
and conditional sales agreements) having the commercial effect of a borrowing
of money entered into by such Person to finance its operations or capital
requirements (but not including trade payables and accrued expenses incurred in
the ordinary course of business), or (vi) any Guaranty of Indebtedness for
borrowed money.

 

Indemnified
Taxes means
Taxes other than Excluded Taxes.

 

Ineligible
Security
means any security which may not be underwritten or dealt in by member banks of
the Federal Reserve System under Section 16 of the Banking Act of 1933 (12
U.S.C. Section 24, Seventh), as amended.

 

Insolvency
Proceeding
means, with respect to any Person, (i) a case, action or proceeding with
respect to such Person (a) before any court or any other Official Body
under any bankruptcy, insolvency, reorganization or other similar Law now or
hereafter in effect, or (b) for the appointment of a receiver, liquidator,
assignee, custodian, trustee, sequestrator, conservator (or similar official)
of any Loan Party or otherwise relating to the liquidation, dissolution,
winding-up or relief of such Person, or (ii) any general assignment for
the benefit of creditors, composition, marshaling of assets for creditors, or
other, similar arrangement in respect of such Person’s creditors generally or
any substantial portion of its creditors; undertaken under any Law.

 

13

 

Intercompany
Indebtedness
means, as of any date of determination, Indebtedness payable by the Borrower to
any Consolidated Subsidiary or by any Consolidated Subsidiary to either the
Borrower or any other Consolidated Subsidiary. 
It is expressly agreed that Intercompany Indebtedness shall not include
any Indebtedness payable by the Borrower or any Consolidated Subsidiary to any
Excluded Subsidiary.

 

Interest
Coverage Ratio
means the ratio of the amounts under the following clauses (i) and
(ii):  (i) Consolidated EBITDA (as
the numerator) to (ii) Consolidated Interest Expense (as the
denominator).  For purposes of
calculating the Interest Coverage Ratio, Consolidated EBITDA and Consolidated
Interest Expense shall be determined as of the end of each fiscal quarter of
the Borrower for the four fiscal quarters then ended.

 

Interest
Period means
the period of time selected by the Borrower in connection with (and to apply
to) any election permitted hereunder by the Borrower to have Revolving Credit
Loans bear interest under the Euro-Rate Option. 
Subject to the last sentence of this definition such period shall be
one, two, three or six Months. Such Interest Period shall commence on the
effective date of such Interest Rate Option, which shall be (a) the
Borrowing Date if the Borrower is requesting new Loans, or (b) the date of
renewal of or conversion to the Euro-Rate Option if the Borrower is renewing or
converting to the Euro-Rate Option applicable to outstanding Loans.  Notwithstanding the second sentence hereof: (A) any
Interest Period which would otherwise end on a date which is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day
falls in the next calendar month, in which case such Interest Period shall end
on the next preceding Business Day, and (B) the Borrower shall not select,
convert to or renew an Interest Period for any portion of the Loans that would
end after the Expiration Date.

 

Interest
Rate Option
means any Euro-Rate Option or Base Rate Option.

 

Interim Statements has the meaning assigned to that term in
Section 6.1.9(i) [Historical
Statements].

 

Internal
Revenue Code
means the Internal Revenue Code of 1986, as the same may be amended or
supplemented from time to time, and any successor statute of similar import,
and the rules and regulations thereunder, as from time to time in effect.

 

Investments means collectively all of the following
with respect to any Person: (i) investments or contributions by any of the
Loan Parties or their Subsidiaries directly or indirectly in or to the capital
of or other payments to (except in connection with transactions for the sale of
goods or services for fair value in the ordinary course of business) such
Person, (ii) loans or advances by any of the Loan Parties or their Subsidiaries
to such Person, (iii) guaranties by any Loan Party or any Subsidiary of
any Loan Party directly or indirectly of the obligations of such Person, (iv) other
credit enhancements of any Loan Party or any Subsidiary of any Loan Party to or
for the benefit of such Person, or (v) if such Loan Party or any
Subsidiary of any Loan Party is liable as a matter of law for the obligations
of such Person, obligations, contingent or otherwise, of such Person. If the
nature of an Investment is tangible property then the amount of such Investment
shall be determined by valuing such property at fair value in 

 

14

 

accordance with
the past practice of the Loan Parties and such fair values shall be
satisfactory to the Agent, in its reasonable discretion.

 

IRH
Provider  has the
meaning assigned to such term in Section 9.2.5.2
[Collateral Sharing].

 

Law means any law (including common law),
constitution, statute, treaty, regulation, rule, ordinance, opinion, release,
ruling, order, injunction, writ, decree, bond, judgment, authorization or
approval, lien or award of or settlement agreement with any Official Body.

 

Lender
Joinder shall
have the meaning assigned to such term in Section 11.11
[Successors and Assigns].

 

Lender-Provided
Hedge means
any Hedge which is provided by any Lender or Affiliate of a Lender and with
respect to which the Agent confirms meets the following requirements: such
Hedge (i) is documented in a standard International Swap Dealer
Association Agreement, (ii) provides for the method of calculating the
reimbursable amount of the provider’s credit exposure in a reasonable and
customary manner, and (iii) has been represented to Agent by Borrower as
being  entered into for hedging (rather
than speculative) purposes.  The
liabilities of the Loan Parties to the provider of any Lender-Provided Hedge
(the “Hedge Liabilities”) shall be “Obligations”
hereunder, guaranteed obligations under the Guaranty Agreement and otherwise
treated as Obligations for purposes of each of the other Loan Documents.  The Liens securing the Hedge Liabilities
shall be pari passu with the Liens securing all other Obligations under this
Agreement and the other Loan Documents.

 

Lenders means the financial institutions named
on Schedule 1.1(B) and their
respective successors and assigns as permitted hereunder, each of which is
referred to herein as a Lender.

 

Letter of
Credit has
the meaning assigned to that term in Section 2.10.1
[Issuance of Letters of Credit].

 

Letter of
Credit Borrowing
has the meaning assigned to such term in Section 2.10.3.4.

 

Letter of
Credit Fee
has the meaning assigned to that term in Section 2.10.2
[Letter of Credit Fees].

 

Letters
of Credit Outstanding means at any time the sum of (i) the aggregate undrawn face
amount of outstanding Letters of Credit and (ii) the aggregate amount of
all unpaid and outstanding Reimbursement Obligations and Letter of Credit
Borrowings.

 

Leverage
Ratio means
the ratio of the amounts under the following clauses (i) and (ii):  (i) Total Debt (as the numerator) to (ii) Consolidated
EBITDA (as the denominator).  For
purposes of calculating the Leverage Ratio (and unless otherwise expressly
stated in this Agreement), Total Debt shall be determined as of the end of each
fiscal quarter of 

 

15

 

the Borrower and
Consolidated EBITDA shall be determined as of the end of each fiscal quarter of
the Borrower for the four fiscal quarters then ended.

 

Lien means any mortgage, deed of trust,
pledge, lien, security interest, charge or other encumbrance or security
arrangement of any nature whatsoever, whether voluntarily or involuntarily
given, including any conditional sale or title retention arrangement, and any
assignment, deposit arrangement or lease intended as, or having the effect of,
security and any filed financing statement or other notice of any of the
foregoing (whether or not a lien or other encumbrance is created or exists at
the time of the filing).

 

Loan
Documents
means this Agreement, the Agent’s Letter, the Guaranty Agreement, the Pledge
Agreement, the Subsidiary Pledge Agreement, the Notes and any other
instruments, certificates or documents delivered or contemplated to be
delivered hereunder or thereunder or in connection herewith or therewith, as
the same may be supplemented or amended from time to time in accordance
herewith or therewith, and Loan Document
means any of the Loan Documents.

 

Loan
Parties means
the Borrower and the Guarantors.

 

Loan
Request means
a request for a Revolving Credit Loan or a request to select, convert to or
renew a Base Rate Option or Euro-Rate Option with respect to an outstanding
Revolving Credit Loan in accordance with Section 2.5
[Revolving Credit Loan Requests, Swing Loan Requests] and Section 4.1
[Interest Rate Options].

 

Loans means collectively and Loan means separately all Revolving
Credit Loans and Swing Loans, or any Revolving Credit Loan or Swing Loan.

 

Material
Adverse Change
means any set of circumstances or events which (i) has or could reasonably
be expected to have any material adverse effect whatsoever upon the validity or
enforceability of this Agreement or any other Loan Document, (ii) is or
could reasonably be expected to be material and adverse to the business,
properties, assets, financial condition, results of operations or (as to Section 7.1.8 [Officer’s
Certificate Regarding MACs; Solvency] only) prospects of the Loan Parties taken
as a whole, (iii) impairs materially or could reasonably be expected to
impair materially the ability of the Loan Parties taken as a whole to duly and
punctually pay or perform its Indebtedness, or (iv) impairs materially or
could reasonably be expected to impair materially the ability of the Agent or
any of the Lenders, to the extent permitted, to enforce their legal remedies
pursuant to this Agreement or any other Loan Document.

 

Material
Adverse Effect
means any set of circumstances or events which has a material adverse effect on
(i) the business, properties, operations, assets, financial condition or results
of operations of the Loan Parties taken as a whole, or (ii) the validity or
enforceability of this Agreement or any of the other Loan Documents or the
rights or remedies of the Agent or the Lenders hereunder or thereunder.

 

16

 

Material
Domestic Subsidiary means any Domestic Subsidiary of the Borrower that is also a Material
Subsidiary.

 

Material
First Tier Foreign Subsidiary means a First Tier Foreign Subsidiary that is also a
Material Subsidiary.

 

Material
Subsidiary
means, as of any date of determination, any Domestic Subsidiary or any Foreign
Subsidiary that, together with its Subsidiaries on a consolidated basis, (i) owns
assets (excluding assets that pursuant to GAAP principles of consolidation
would be eliminated from the consolidated balance sheet of the Borrower as of
such date of determination) on such date of determination equal to at least ten
percent (10%) of the total assets of the Borrower and its Subsidiaries on a
consolidated basis on such date of determination or (ii) generated
revenues (excluding revenues that pursuant to GAAP principles of consolidation
would be eliminated from the consolidated income statement of the Borrower as
of such date of determination) for the twelve month period ending on such date
of determination equal to at least ten percent (10%) of the total revenues of
the Borrower and its Subsidiaries on a consolidated basis for such period.

 

Month, with respect to an Interest Period
under the Euro-Rate Option, means the interval between the days in consecutive
calendar months numerically corresponding to the first day of such Interest
Period.  If any Euro-Rate Interest Period
begins on a day of a calendar month for which there is no numerically
corresponding day in the month in which such Interest Period is to end, the
final month of such Interest Period shall be deemed to end on the last Business
Day of such final month.

 

Moody’s means Moody’s Investors Service, Inc.
and its successors or assigns in the business of such company in the rating of
securities.

 

Multiemployer
Plan means
any employee benefit plan which is a “multiemployer plan” within the meaning of
Section 4001(a)(3) of ERISA and to which the Borrower or any member
of the ERISA Group is then making or accruing an obligation to make
contributions or, within the preceding five Plan years, has made or had an
obligation to make such contributions.

 

Multiple
Employer Plan
means a Plan which has two or more contributing sponsors (including the
Borrower or any member of the ERISA Group) at least two of whom are not under
common control, as such a plan is described in Sections 4063 and 4064 of
ERISA.

 

Non-Consenting
Lender has
the meaning assigned to such term in Section 11.1
[Modifications, Amendments or Waivers]

 

Notes means the Revolving Credit Notes and the
Swing Loan Note.

 

Notices has the meaning assigned to that term in
Section 11.6 [Notices; Lending
Offices].

 

17

 

Obligation means any obligation or liability of any
of the Loan Parties to the Agent or any of the Lenders, howsoever created,
arising or evidenced, whether direct or indirect, absolute or contingent, now
or hereafter existing, or due or to become due, under or in connection with
this Agreement, the Notes, the Letters
of Credit, the Agent’s Letter or any other Loan Document.  Obligations shall include the liabilities to
any Lender under any Lender-Provided Hedge but shall not include the
liabilities to other Persons under any other Hedge.

 

Official
Body means
any national, federal, state, local or other government or political
subdivision or any agency, authority, board, bureau, central bank, commission,
department or instrumentality of either, or any court, tribunal, grand jury or
arbitrator, in each case whether foreign or domestic.

 

Optional
Currency
means any of the following currencies: British Pounds Sterling, Japanese Yen,
Swiss Francs, the Euro and any other currency approved by Agent and all of the
Lenders pursuant to Section 2.11.4
[Requests for Additional Optional Currencies].

 

Optional
Currency Loan Processing Fees has the meaning assigned to such term in Section 10.12 [Agent’s Fee].

 

Original
Currency has
the meaning assigned to such term in  Section 5.11.1
[Currency Conversion Procedures for Judgments].

 

Other
Currency has
the meaning assigned to such term in Section 5.11.1
[Currency Conversion Procedures for Judgments].

 

Overnight
Rate means
for any day with respect to any Loans in an Optional Currency, the rate of
interest per annum as determined by the Agent at which overnight deposits in
such currency, in an amount approximately equal to the amount with respect to
which such rate is being determined, would be offered for such day in the
applicable offshore interbank market.

 

Order has the meaning given to such term in Section 2.10.9 [Liability for
Acts and Omissions].

 

Other
Taxes means
all present or future stamp or documentary taxes or any other excise or
property taxes, charges or similar levies arising from any payment made
hereunder or under any other Loan Document or from the execution, delivery or
enforcement of, or otherwise with respect to, this Agreement or any other Loan
Document.

 

Participation
Advance
means, with respect to any Lender, such Lender’s payment in respect of its
participation in a Letter of Credit Borrowing according to its Ratable Share
pursuant to Section 2.10.4 [Repayment
of Participation Advances].

 

PBGC means the Pension Benefit Guaranty
Corporation established pursuant to Subtitle A of Title IV of ERISA or any
successor.

 

18

 

Permitted
Acquisitions  has the meaning assigned to such term in Section 8.2.6 [Liquidations,
Mergers, Consolidations, Acquisitions].

 

Permitted
Investments
means:

 

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

 

(ii)                                  U.S. dollar denominated time and demand
deposits and certificates of deposit of (a) any Lender, (b) any
domestic commercial bank having capital and surplus in excess of
$500,000,000.00 or (c) any bank whose short-term commercial paper rating
from S&P is at least A-1 or the equivalent thereof or from Moody’s is at
least P-1 or the equivalent thereof (any such bank being an “Approved Bank”), in each case with
maturities of not more than 270 days from the date of acquisition,

 

(iii)                               commercial paper and variable or fixed
rate notes issued by any Approved Bank (or by the parent company thereof) or
any variable rate notes issued by, or guaranteed by, any domestic corporation
rated A-1 (or the equivalent thereof) or better by S&P or P-1 (or the
equivalent thereof) or better by Moody’s and maturing within six months of the
date of acquisition,

 

(iv)                              repurchase agreements with a bank or
trust company (including any of the Lenders) or securities dealer having
capital and surplus in excess of $500,000,000 for direct obligations issued by
or fully guaranteed by the United States of America in which the Borrower shall
have a perfected first priority security interest (subject to no other Liens)
and having, on the date of purchase thereof, a fair market value of at least
100% of the amount of the repurchase obligations,

 

(v)                                 marketable direct obligations issued by
any state of the United States of America or any political subdivision of any
such state or any public instrumentality thereof maturing within one year from
the date of acquisition thereof and, at the time of acquisition, rated A-1 (or
the equivalent thereof) or better from S&P or rated P-1 (or the equivalent
thereof) or better from Moody’s,

 

(vi)                              Euro time deposits having a maturity of
less than one year purchased from any Lender directly (whether or not such
deposit is with such Lender or any other Lender hereunder),

 

(vii)                           investments in portfolios comprised of
securities rated A-1 (or the equivalent thereof) or better by S&P or P-1
(or the equivalent thereof) or better by Moody’s and having a total average
maturity not to exceed 24 months,

 

(viii)                        cash on hand and in bank accounts, and

 

19

 

(ix)                                investments, classified in accordance with
GAAP as current assets, in money market investment programs registered under
the Investment Company Act of 1940, as amended, which are administered by
financial institutions having capital of at least $500,000,000 and the
portfolios of which are limited to investments of the character described in
the foregoing subdivisions (i) through (viii).

 

Permitted
Liens means:

 

(i)                                     Liens for taxes, assessments, or similar
charges, incurred in the ordinary course of business and which are not yet due
and payable;

 

(ii)                                  Pledges or deposits made in the ordinary
course of business to secure payment of workmen’s compensation, or to
participate in any fund in connection with workmen’s compensation, unemployment
insurance, old-age pensions or other social security programs;

 

(iii)                               Liens of mechanics, materialmen,
warehousemen, carriers, or other like Liens, securing obligations incurred in
the ordinary course of business that are not yet due and payable and Liens of
landlords securing obligations to pay lease payments that are not yet due and
payable or in default;

 

(iv)                              Good-faith pledges or deposits made in
the ordinary course of business to secure performance of bids, tenders,
contracts (other than for the repayment of borrowed money) or leases, not in
excess of the aggregate amount due thereunder, or to secure statutory
obligations; or surety, appeal, indemnity, performance bonds, other similar
bonds or obligations of a like nature required in the ordinary course of
business;

 

(v)                                 Encumbrances consisting of rights-of-way,
zoning restrictions, easements or other similar encumbrances, charges or
restrictions on the use of real property or other minor defects or
irregularities in title so long as all of the foregoing:  (a) are incurred in the ordinary course
of business, (b) are not in the aggregate substantial in amount, (c) do
not materially impair the use of such property or the value thereof, and (d) none
of which is violated in any material respect by existing or proposed structures
or land use;

 

(vi)                              Liens, security interests and mortgages
in favor of the Agent for the benefit of the Banks securing the Obligations
including liabilities under any Lender-Provided Hedge;

 

(vii)                           Any Lien existing on the date of this
Agreement and described on Schedule 1.1(P),
provided that the principal amount secured thereby is not hereafter
increased, and no additional assets become subject to such Lien;

 

(viii)                        Purchase Money Security Interests, provided
that the aggregate amount of loans and deferred payments secured by such
Purchase Money Security Interests shall not exceed $50,000,000 (excluding for
the purpose of this computation any loans or deferred payments secured by Liens
described on Schedule 1.1(P));

 

20

 

(ix)                                Any judgment Liens that would not
otherwise constitute an Event of Default;

 

(x)                                   The Liens set forth in items (A) through
(C) below of this clause (x) so long as such Liens are in accordance
with the applicable requirements of such items set forth below and so long as (a) neither
the aggregate outstanding principal amount of the Indebtedness secured thereby,
nor (b) the aggregate fair market value (determined as of the date such
Lien is incurred) of the assets subject thereto exceeds in the aggregate for
the Borrower and its Subsidiaries the amount of Indebtedness permitted by Section 8.2.1(viii):

 

(A)                              Liens on fixed or capital assets
acquired, constructed or improved by the Borrower or any Subsidiary; provided
that (1) such Liens and the Indebtedness secured thereby are incurred
prior to or within 90 days after such acquisition or the completion of such
construction or improvement, (2) the Indebtedness secured thereby does not
exceed the cost (excluding transaction costs) of acquiring, constructing or
improving such fixed or capital assets and (3) such Liens shall not
encumber any property or assets of the Borrower or any of its Subsidiaries
other than the property financed by such Indebtedness;

 

(B)                                Any Lien existing on any assets or Person
prior to the time, as part of a Permitted Acquisition, such assets are acquired
by the Borrower or a Subsidiary of the Borrower or such Person is acquired and
becomes a Subsidiary of the Borrower; provided that (1) such Lien
is not created in contemplation of or in connection with such acquisition or
such Person becoming a Subsidiary of the Borrower, as the case may be, (2) such
Lien shall not apply to any other property or assets of the Borrower or any
Subsidiary of the Borrower, and (3) such Lien shall secure only those
obligations which it secures on the date of such acquisition or the date such
Person becomes a Subsidiary of the Borrower, as the case may be, and
extensions, renewals, refinancings and replacements thereof that do not
increase the outstanding principal amount thereof; and

 

(C)                                other Liens on assets of the Borrower or
any of its Subsidiaries not otherwise specified in this definition of Permitted
Liens;

 

(xii)                             Liens arising by virtue of any statutory
or common law provision relating to banker’s liens, rights of setoff or similar
rights as to deposit accounts or other funds maintained, in either case, in the
ordinary course of business with a creditor depository institution;

 

(xiii)                          Any interest or title of a lessor or
sublessor under any lease or sublease entered into by the Borrower or any
Subsidiary of the Borrower in the ordinary course of its business and covering
only the assets so leased or subleased; and leases or subleases granted to
others, in the ordinary course of the Borrower’s or its Subsidiaries’ business,
not interfering in any material respect with the business of the Borrower or
any of its Subsidiaries;

 

21

 

(xiv)                         Liens, in the ordinary course of the
Borrower’s or its Subsidiaries’ business, in favor of customs and revenue
authorities as a matter of law to secure payment of custom duties;

 

(xv)                            Liens securing the Cash Pooling
Obligations so long as such Liens are on assets of Foreign Subsidiaries on
deposit in accounts with financial institutions providing such Cash Pooling
Obligations to such Foreign Subsidiaries;

 

(xvi)                         Liens incurred in the ordinary course of
business of the Loan Parties and their Subsidiaries on assets of the Loan
Parties and their Subsidiaries, which Liens secure surety, appeal, indemnity,
performance or other similar bonds or obligations of a like nature required in
the ordinary course of business of the Loan Parties and their Subsidiaries so
long as the aggregate net book value of the assets of the Loan Parties and
their Subsidiaries secured by all Liens permitted by this clause (xvi) does not
exceed $20,000,000; and

 

(xvii)                      The following, (a) if the validity
or amount thereof is being contested in good faith by appropriate and lawful
proceedings diligently conducted so long as levy and execution thereon have
been stayed and continue to be stayed or (b) if a final judgment is
entered and such judgment is discharged within thirty (30) days of entry, and
in either case they do not affect the Pledged Collateral or in the aggregate
materially impair the ability of any Loan Party to perform its Obligations
hereunder or under the other Loan Documents:

 

(A)                              Claims or Liens for taxes, assessments or
charges due and payable and subject to interest or penalty, provided
that the applicable Loan Party maintains such reserves or other appropriate
provisions as shall be required by GAAP and pays all such taxes, assessments or
charges forthwith upon the commencement of proceedings to foreclose any such
Lien;

 

(B)                                Claims, Liens or encumbrances upon, and
defects of title to, personal property (other than the Pledged Collateral),
including any attachment of personal property or other legal process prior to
adjudication of a dispute on the merits; or

 

(C)                                Claims or Liens of mechanics,
materialmen, warehousemen, carriers, landlords or other statutory nonconsensual
Liens.

 

Person means any individual, corporation,
partnership, limited liability company, association, joint-stock company,
trust, unincorporated organization, joint venture, government or political
subdivision or agency thereof, or any other entity.

 

Plan means at any time an employee pension
benefit plan (including a Multiple Employer Plan, but not a Multiemployer Plan)
which is covered by Title IV of ERISA or is subject to the minimum funding
standards under Section 412 of the Internal Revenue Code and either (i) is
maintained by any member of the ERISA Group for employees of any member of the
ERISA Group or (ii) has at any time within the preceding five years been
maintained by any 

 

22

 

entity which was
at such time a member of the ERISA Group for employees of any entity which was
at such time a member of the ERISA Group.

 

Pledge
Agreement
means the Pledge Agreement in substantially the form of Exhibit 1.1(P) executed
and delivered by the Borrower to the Agent.

 

Pledged
Collateral
means the shares of common stock and other property owned by certain of the
Loan Parties in which security interests are to be granted under the Pledge
Agreement or the Subsidiary Pledge Agreement.

 

PNC Bank means PNC Bank, National Association,
its successors and assigns.

 

Potential
Default means
any event or condition which with notice or passage of time, or any combination
of the foregoing, would constitute an Event of Default.

 

Principal
Office means
the main banking office of the Agent in Pittsburgh, Pennsylvania.

 

Prior
Security Interest means a valid and enforceable perfected first-priority security
interest under the Uniform Commercial Code and under all other applicable Law
in the Pledged Collateral which is subject only to Liens for taxes not yet due
and payable to the extent such prospective tax payments are given priority by
statute.

 

Prohibited
Transaction
means any prohibited transaction as defined in Section 4975 of the Internal
Revenue Code or Section 406 of ERISA for which neither an individual nor a
class exemption has been issued by the United States Department of Labor provided,
however, that a Prohibited Transaction shall not include any transaction
exempt from Section 4975 of the Internal Revenue Code by reason of the
applicability of Section 4975(d) thereof or any transaction exempt
from Section 406 of ERISA by reason of the applicability of Section 408
thereof.

 

Property means all real property, both owned and
leased, of any Loan Party or Subsidiary of a Loan Party.

 

Published
Rate means
the rate of interest published each Business Day in The Wall
Street Journal “Money Rates” listing under the caption “London
Interbank Offered Rates” for a one month period (or, if no such rate is
published therein for any reason, then the Published Rate shall be the
eurodollar rate for a one month period as published in another publication
selected by the Agent).

 

Purchase
Money Security Interest means Liens upon tangible personal property securing
loans to any Loan Party or Subsidiary of a Loan Party or deferred payments by
such Loan Party or Subsidiary for the purchase of such tangible personal
property.

 

Purchasing
Lender means
a Lender which becomes a party to this Agreement by executing an Assignment and
Assumption Agreement.

 

23

 

Ratable Share means the proportion that a Lender’s Commitment
(excluding the Swing Loan Commitment) bears to the Commitments (excluding the
Swing Loan Commitments) of all of the Lenders.

 

Regulated
Substances
means, without limitation, any substance, material or waste, regardless of its
form or nature, defined under Environmental Laws as a “hazardous substance,” “pollutant,”
“pollution,” “contaminant,” “hazardous or toxic substance,” “extremely
hazardous substance,” “toxic chemical,” “toxic substance,” “toxic waste,” “hazardous
waste,” “special handling waste,” “industrial waste,” “residual waste,” “solid
waste,” “municipal waste,” “mixed waste,” “pesticide,” “infectious waste,” “chemotherapeutic
waste,” “medical waste,” or “regulated substance” or any other material,
substance or waste, regardless of its form or nature, which is regulated,
controlled or governed by Environmental Laws due to its radioactive, ignitable,
corrosive, reactive, explosive, toxic, carcinogenic or infectious properties or
nature, or which otherwise  is regulated,
controlled or governed by any applicable Environmental Law, including without
limitation, petroleum and petroleum products (including crude oil and any
fractions thereof), natural gas, synthetic gas and any mixtures thereof,
asbestos, urea formaldehyde, polychlorinated biphenlys, mercury, radon and
radioactive material.

 

Regulation U means Regulation U, T, or X as promulgated by the
Board of Governors of the Federal Reserve System, as amended from time to time.

 

Reimbursement Obligation has the meaning assigned to such term in
Section 2.10.3.2.

 

Related Parties means, with respect to any Person, such Person’s
Subsidiaries and Affiliates, and the partners, directors, officers, employees,
agents and advisors of such Person or any of such Person’s Subsidiaries and
Affiliates.

 

Remedial Action means any investigation, identification, preliminary
assessment, characterization, delineation, feasibility study, cleanup,
corrective action, removal, remediation, risk assessment, fate and transport
analysis, in-situ treatment, containment, operation and maintenance or
management in-place, control, abatement or other response actions to Regulated
Substances and any closure and post-closure measures associated therewith.

 

Reportable Event means a reportable event described in Section 4043
of ERISA and regulations thereunder with respect to a Plan or Multiemployer
Plan, unless notice to the PBGC has been waived under the following subsections
of PBGC Regulation Subsection 4043: .23, .24 and .32.

 

Required Environmental Permits means all permits, licenses, bonds or
other forms of financial assurances, consents, registrations, identification
numbers, approvals or authorizations required under Environmental Laws to own,
occupy or maintain the Property or which otherwise are required for the
operations and business activities of the Borrower or Guarantors or for the
performance of a Remedial Action.

 

24

 

Required Lenders means

 

(i)                                     if there are no Loans, Reimbursement
Obligations or Letter of Credit Borrowings outstanding, Required Lenders shall
mean Lenders (other than Defaulting Lenders) whose Commitments (excluding the
Swing Loan Commitments) aggregate in excess of 50% of the Commitments (excluding
Swing Loan Commitments) of all of the Lenders (other than Defaulting Lenders),
or

 

(ii)                                  if there are Loans, Reimbursement
Obligations or Letter of Credit Borrowings outstanding, Required Lenders means
any group of Lenders (excluding Defaulting Lenders) if the sum of the Loans
(excluding the Swing Loans) and Reimbursement Obligations (including, without
limitation, Letter of Credit Borrowings) due to such Lenders (excluding
Defaulting Lenders) then outstanding aggregates in excess of 50% of the total
principal amount of all of the Loans (excluding the Swing Loans) and
Reimbursement Obligations (including, without limitation, Letter of Credit
Borrowings) due to all Lenders (excluding those of Defaulting Lenders) then
outstanding.

 

Required Share has the meaning assigned to such term in Section 5.10 [Settlement Date
Procedures].

 

Revolving Credit Commitment means, as to any Lender at any time, the
amount initially set forth opposite its name on Schedule 1.1(B) in
the column labeled “Amount of Commitment for Revolving Credit Loans,” and
thereafter on Schedule I to the most recent Assignment and Assumption
Agreement, and Revolving Credit
Commitments shall mean the aggregate Revolving Credit
Commitments of all of the Lenders.

 

Revolving Credit Loans means collectively and Revolving Credit Loan means
separately all Revolving Credit Loans or any Revolving Credit Loan made by the
Lenders or one of the Lenders to the Borrower pursuant to Section 2.1
[Revolving Credit Commitments] or Section 2.10.3
[Disbursement and Reimbursement].

 

Revolving Credit Notes means collectively all the Revolving
Credit Notes of the Borrower in the form of Exhibit 1.1(R) evidencing
the Revolving Credit Loans to such Lender, together with all amendments,
extensions, renewals, replacements, refinancings or refundings thereof in whole
or in part and Revolving Credit Note
means any of them separately.

 

Revolving Facility Usage means at any time the sum of the amount
of Revolving Credit Loans then outstanding, the amount of Swing Loans then
outstanding and the amount of Letters of Credit Outstanding.

 

Safety Complaints means any (i) written notice of
non-compliance or violation, citation or order relating in any way to any
Safety Law; (ii) civil, criminal, administrative or regulatory
investigation, or judicial action, suit, claim or proceeding instituted by an
Official Body relating in any way to any Safety Law; (iii) civil,
criminal, administrative or regulatory or judicial action, suit, claim or
proceeding instituted by any Official Body for civil or administrative
penalties, criminal fines or penalties, or declaratory or equitable relief
arising 

 

25

 

under any Safety Laws; or (iv) subpoena, request for information
or other written notice or demand of any type issued by an Official Body
pursuant to any Safety Laws.

 

Safety Laws means the Occupational Safety and Health Act, 29
U.S.C. § 651 et seq., as amended, and any regulations promulgated
thereunder or any equivalent or other foreign, territorial, provincial state or
local Law, each as amended, and any regulations promulgated thereunder,
pertaining or relating to the protection of employees from exposure to
Regulated Substances or hazardous conditions in the workplace (but excluding
workers compensation and wage and hour laws).

 

SEC means the Securities and Exchange Commission or any
governmental agencies substituted therefore.

 

Section 20 Subsidiary means the Subsidiary of the bank holding
company controlling any Lender, which Subsidiary has been granted authority by
the Federal Reserve Board to underwrite and deal in certain Ineligible
Securities.

 

Settlement Date means the date selected from time to time by the
Agent on which the Agent elects to effect settlement pursuant to Section 5.10 [Settlement Date
Procedures].

 

Solvent means, with respect to any Person on a particular
date, that on such date (i) the fair value of the property of such Person
is greater than the total amount of liabilities, including, without limitation,
contingent liabilities, of such Person, (ii) the present fair saleable
value of the assets of such Person is not less than the amount that will be
required to pay the probable liability of such Person on its debts as they
become absolute and matured, (iii) such Person is able to pay its debts
and other liabilities, contingent obligations and other commitments as they
mature in the normal course of business, (iv) such Person does not intend
to, and does not believe that it will, incur debts or liabilities beyond such
Person’s ability to pay as such debts and liabilities mature, and (v) such
Person is not engaged in business or a transaction, and is not about to engage
in business or a transaction, for which such Person’s property would constitute
unreasonably small capital after giving due consideration to the prevailing
practice in the industry in which such Person is engaged.  In computing the amount of contingent
liabilities at any time, it is intended that such liabilities will be computed at
the amount which, in light of all the facts and circumstances existing at such
time, represents the amount that can reasonably be expected to become an actual
or matured liability.

 

Standard & Poor’s or S&P means Standard & Poor’s Ratings
Services, a division of The McGraw-Hill Companies, Inc.

 

Standby Letter of Credit means a Letter of Credit issued to
support obligations of one or more of the Loan Parties, contingent or
otherwise, which finance the working capital and business needs of the Loan
Parties incurred in the ordinary course of business, but excluding any letter
of credit under which the stated amount of such letter of credit increases
automatically over time.

 

26

 

Subsidiary of any Person at any time means (i) any
corporation or trust of which 50% or more (by number of shares or number of
votes) of the outstanding capital stock or shares of beneficial interest
normally entitled to vote for the election of one or more directors or trustees
(regardless of any contingency which does or may suspend or dilute the voting
rights) is at such time owned directly or indirectly by such Person or one or
more of such Person’s Subsidiaries, (ii) any partnership of which such
Person is a general partner or of which 50% or more of the partnership interests
is at the time directly or indirectly owned by such Person or one or more of
such Person’s Subsidiaries, (iii) any limited liability company of which
such Person is a member or of which 50% or more of the limited liability
company interests is at the time directly or indirectly owned by such Person or
one or more of such Person’s Subsidiaries or (iv) any corporation, trust,
partnership, limited liability company or other entity which is controlled by
such Person or one or more of such Person’s Subsidiaries.  It is expressly agreed that, notwithstanding
the foregoing definition of Subsidiary, the Loan Parties, upon written notice
to the Agent and the Lenders, may elect that any Person in which any Loan Party
or any Subsidiary of any Loan Party has made an Investment permitted by Section 8.2.4(v) shall
not be treated as a Subsidiary for all purposes of the Loan Documents
(including, without limitation, for purposes of the representations,
warranties, covenants and defaults thereof) and in the event of such election,
it is expressly agreed that the assets, liabilities, equity, net worth and
results of operations of such Person subject to such election shall be excluded
from the determination of the financial covenants set forth in Section 8.2.15 [Maximum Leverage
Ratio] and Section 8.2.16 [Minimum
Interest Coverage Ratio], any other financial covenant (pro-forma or otherwise)
set forth in the Loan Documents and for purposes of determining the Applicable
Margin.

 

Subsidiary Pledge Agreement means the Pledge Agreement in
substantially the form of Exhibit 1.1(S)(1)
executed and delivered by each Guarantor which owns Pledged Collateral, to
the Agent.

 

Subsidiary Shares means all issued and outstanding capital
stock, partnership interests, limited liability company member interests or
other equity interests of each Material Domestic Subsidiary and of each
Material First Tier Foreign Subsidiary.

 

Swing Loan Commitment has the meaning assigned to such term in
Section 2.2.1 [Swing Loans].

 

Swing Loan Note means the Swing Loan Note of the Borrower in the form
of Exhibit 1.1(S)(2)  evidencing
the Swing Loans, together with all amendments, extensions, renewals,
replacements, refinancings or refundings thereof in whole or in part.

 

Swing Loan Request has the meaning assigned to such term in
Section 2.5.2 [Swing Loan
Requests] hereof.

 

Swing Loans means collectively and Swing
Loan means separately all Swing Loans or any Swing Loan made by
PNC Bank to the Borrower pursuant to Section 2.2.1
[Swing Loans] hereof.

 

27

 

Taxes means all present or future taxes, levies, imposts,
duties, deductions, withholdings, assessments, fees or other charges imposed by
any Official Body, including any interest, additions to tax or penalties
applicable thereto.

 

Total Debt means, as of any date of determination, the amount
under the following clause (i) less the amount under the following clause
(ii):

 

(i)                                     as of the date of determination the
aggregate amount for the Borrower and its Subsidiaries (determined without
duplication) of Indebtedness, less

 

(ii)                                  the sum of (a) as of the date of
determination the aggregate amount for the Borrower and its Subsidiaries
(determined without duplication) of account deficits arising from Cash Pooling
Obligations, which account deficits do not result in overdrafts, plus (b) as
of the date of determination the aggregate amount for the Borrower and its
Subsidiaries (determined without duplication) of Intercompany Indebtedness (it
being expressly understood that any Indebtedness payable by the Borrower or any
Consolidated Subsidiary to any Excluded Subsidiary shall not be included as
Intercompany Indebtedness).

 

Transferor Lender means the selling Lender pursuant to an
Assignment and Assumption Agreement.

 

Treasury Regulations means the regulations promulgated under
the Internal Revenue Code of the U.S.

 

Uniform Commercial Code has the meaning assigned to that term in
Section 6.1.26 [Security
Interests].

 

U.S. means the United States of America.

 

USA Patriot Act means the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001, Public Law 107-56, as the same has been, or shall hereafter be, renewed,
extended, amended or replaced.

 

Voting Stock of a corporation, limited liability company or
partnership means, at any time, all classes of the capital stock, equivalent
ownership interests or other voting securities of such Person then outstanding
and ordinarily entitled to vote in the election of directors (or similar
governing authority).

 

1.2                                Construction.

 

Unless
the context of this Agreement otherwise clearly requires, the following rules of
construction shall apply to this Agreement and each of the other Loan
Documents:

 

28

 

1.2.1        Number; Inclusion.

 

references
to the plural include the singular, the plural, the part and the whole; “or”
has the inclusive meaning represented by the phrase “and/or,” and “including”
has the meaning represented by the phrase “including without limitation”;

 

1.2.2        Determination.

 

references
to “determination” of or by the Agent or the Lenders shall be deemed to include
good-faith estimates by the Agent or the Lenders (in the case of quantitative
determinations) and good-faith beliefs by the Agent or the Lenders (in the case
of qualitative determinations) and such determination shall be conclusive
absent manifest error;

 

1.2.3        Agent’s Discretion and Consent.

 

whenever
the Agent or the Lenders are granted the right herein to act in its or their
sole discretion or to grant or withhold consent such right shall be exercised
in good faith;

 

1.2.4        Documents Taken as a Whole.

 

the
words “hereof,” “herein,” “hereunder,” “hereto” and similar terms in this
Agreement or any other Loan Document refer to this Agreement or such other Loan
Document as a whole and not to any particular provision of this Agreement or
such other Loan Document;

 

1.2.5        Headings.

 

the
section and other headings contained in this Agreement or such other Loan
Document and the Table of Contents (if any), preceding this Agreement or such
other Loan Document are for reference purposes only and shall not control or
affect the construction of this Agreement or such other Loan Document or the
interpretation thereof in any respect;

 

1.2.6        Implied References to this Agreement.

 

article,
section, subsection, clause, schedule and exhibit references are to this
Agreement or other Loan Document, as the case may be, unless otherwise
specified;

 

1.2.7        Persons.

 

reference
to any Person includes such Person’s successors and assigns but, if applicable,
only if such successors and assigns are permitted by this Agreement or such
other Loan Document, as the case may be, and reference to a Person in a
particular capacity excludes such Person in any other capacity;

 

29

 

1.2.8        Modifications to Documents.

 

reference
to any agreement (including this Agreement and any other Loan Document together
with the schedules and exhibits hereto or thereto), document or instrument
means such agreement, document or instrument as amended, modified, replaced,
substituted for, superseded or restated;

 

1.2.9        From, To and Through.

 

relative
to the determination of any period of time, “from” means “from and including,” “to”
means “to but excluding,” and “through” means “through and including”; and

 

1.2.10      Shall; Will.

 

references
to “shall” and “will” are intended to have the same meaning.

 

1.3                                Accounting Principles.

 

Except
as otherwise provided in this Agreement, all computations and determinations as
to accounting or financial matters and all financial statements to be delivered
pursuant to this Agreement shall be made and prepared in accordance with GAAP
(including principles of consolidation where appropriate), and all accounting
or financial terms shall have the meanings ascribed to such terms by GAAP; provided,
however, that all accounting terms used in Section 8.2
[Negative Covenants] (and all defined terms used in the definition of any
accounting term used in Section 8.2
[Negative Covenants] shall have the meaning given to such terms (and defined
terms) under GAAP as in effect on the date hereof applied on a basis consistent
with those used in preparing the Annual Statements referred to in Section 6.1.9(i) [Historical
Statements].  In the event of any change
after the date hereof in GAAP, and if such change would result in the inability
to determine compliance with the financial covenants set forth in Section 8.2  [Negative
Covenants] based upon the Borrower’s regularly prepared financial statements by
reason of the preceding sentence, then the parties hereto agree to endeavor, in
good faith, to agree upon an amendment to this Agreement that would adjust such
financial covenants in a manner that would not affect the substance thereof,
but would allow compliance therewith to be determined in accordance with the
Borrower’s financial statements at that time, provided, however,
if (i) the Borrower shall object to determining such compliance on such
basis at the time of delivery of such financial statements due to any change in
GAAP or the rules promulgated with respect thereto, or (ii) either
the Agent or the Required Lenders shall so object in writing within 60 days
after delivery of such financial statements (or after the Lenders have been
informed of the changes in GAAP affecting such financial statements, if later),
then for the period following such objection, unless otherwise agreed by the
Borrower and the Required Lenders, such calculations shall be made on a basis
consistent with the most recent financial statements delivered by the Borrower
to the Lenders as to which no such objection shall have been made.

 

30

 

2.             REVOLVING CREDIT AND SWING LOAN FACILITIES

 

2.1                                Revolving Credit Commitments.

 

2.1.1        Revolving Credit Loans.

 

Subject
to the terms and conditions hereof and relying upon the representations and
warranties herein set forth, each Lender severally agrees to make Revolving
Credit Loans in either Dollars or one or more Optional Currencies to the
Borrower at any time or from time to time on or after the Closing Date to the
Expiration Date, provided  that (i) after giving effect to
each such Loan the aggregate Dollar Equivalent amount of Loans from such Lender
shall not exceed such Lender’s Revolving Credit Commitment minus such Lender’s
Ratable Share of the Dollar Equivalent amount of Letters of Credit Outstanding
and further minus such Lender’s Ratable Share of outstanding Swing Loans, and (ii) no
Loan to which the Base Rate Option applies shall be made in an Optional
Currency, and provided, further that the Dollar Equivalent
Revolving Facility Usage at any time shall not exceed the Revolving Credit
Commitments of all the Lenders.  Within
such limits of time and amount and subject to the other provisions of this
Agreement, the Borrower may borrow, repay and reborrow pursuant to this Section 2.1.

 

2.2                                Swing Loan Commitment.

 

2.2.1        Swing Loans.

 

Subject
to the terms and conditions hereof and relying upon the representations and
warranties herein set forth, and in order to facilitate loans and repayments
between Settlement Dates, PNC Bank may, at its option, cancelable at any time
for any reason whatsoever, make Swing Loans to the Borrower at any time or from
time to time after the Closing Date to, but not including, the Expiration Date,
in an aggregate principal amount up to but not in excess of $10,000,000.00 (the
“Swing Loan Commitment”), provided
that the Dollar Equivalent Revolving Facility Usage at any time, shall
not exceed the Revolving Credit Commitments of all the Lenders.  Within such limits of time and amount and
subject to the other provisions of this Agreement, the Borrower may borrow,
repay and reborrow pursuant to this Section 2.2.1.

 

2.3                                Nature of Lenders’
Obligations with Respect to Revolving Credit Loans.

 

Each
Lender shall be obligated to participate in each request for Revolving Credit
Loans pursuant to Section 2.5
[Revolving Credit Loan Requests; Swing Loan Requests] in accordance with its
Ratable Share.  The aggregate Dollar
Equivalent amount of each Lender’s Revolving Credit Loans outstanding hereunder
to the Borrower at any time shall never exceed its Revolving Credit Commitment
minus its Ratable Share of the Dollar Equivalent amount of Letters of Credit
Outstanding, subject to Section 5.4.6
[Mandatory Prepayment Currency Fluctuations]. 
The obligations of each Lender hereunder are several and not joint.  The failure of any Lender to perform its
obligations hereunder shall not affect the Obligations of the Borrower to any
other party nor shall any other party be liable for the failure of such Lender
to perform its 

 

31

 

obligations hereunder.  The
Lenders shall have no obligation to make Revolving Credit Loans hereunder on or
after the Expiration Date except in accordance with Section 2.10.3.3
in the case of any Letter of Credit drawn on or after the Expiration Date.

 

2.4                                Commitment Fees.

 

Accruing
from the date hereof until the Expiration Date, the Borrower agrees to pay to
the Agent in Dollars for the account of each Lender, as consideration for such
Lender’s Revolving Credit Commitment hereunder, a nonrefundable commitment fee
(the “Commitment Fee”) equal to the
Applicable Commitment Fee Rate (computed on the basis of a year of 365 or 366
days, as the case may be, and actual days elapsed) on the average daily
difference between the amount of (i) such Lender’s Revolving Credit
Commitment as the same may be constituted from time to time (for purposes of
this computation, PNC Bank’s Swing Loans shall be deemed to be borrowed amounts
under its Revolving Credit Commitment) and (ii) the sum of such Lender’s
Revolving Credit Loans outstanding plus its Ratable Share of Letters of Credit
Outstanding, provided, however, that any Commitment Fee accrued
with respect to the Revolving Credit Commitment of a Defaulting Lender during
the period prior to the time such Lender became a Defaulting Lender and unpaid
at such time shall not be payable by the Borrower so long as such Lender shall
be a Defaulting Lender except to the extent that such Commitment Fee shall
otherwise have been due and payable by the Borrower prior to such time; and provided
further that no Commitment Fee shall accrue with respect to the
Revolving Commitment of a Defaulting Lender so long as such Lender shall be a
Defaulting Lender.   For the purpose of
calculating the Commitment Fee as set forth in this Section 2.4,
amounts of any Revolving Credit Loans outstanding and/or Letters of Credit
Outstanding which are denominated in any Optional Currency shall be converted
to the Dollar Equivalent.   Subject to
the provisos in the directly preceding sentence all Commitment Fees shall be
payable in arrears on the first day of each July, October, January and April after
the date hereof and on the Expiration Date or upon acceleration of the Loans.

 

2.5                                Revolving Credit Loan
Requests; Swing Loan Requests.

 

2.5.1        Revolving Credit Loan Requests.

 

Except
as otherwise provided herein, the Borrower may from time to time prior to the
Expiration Date request the Lenders to make Revolving Credit Loans, or renew or
convert the Interest Rate Option applicable to existing Revolving Credit Loans
pursuant to Section 4.2 [Interest
Periods], by delivering to the Agent, not later than 11:00 a.m., Pittsburgh
time, (i) three (3) Business Days prior to the proposed Borrowing
Date with respect to the making of Revolving Credit Loans in Dollars to which
the Euro-Rate Option applies or the date of conversion to or the renewal of the
Euro-Rate Option for any such Loans and four (4) Business Days prior to
the proposed Borrowing Date with respect to the making of Revolving Credit
Loans in an Optional Currency or the date of conversion to or renewal of the
Euro Rate Option for Revolving Credit Loans in an Optional Currency; and (ii) one
(1) Business Day prior to either the proposed Borrowing Date with respect
to the making of a Revolving Credit Loan to which the Base Rate Option applies
or the last day of the preceding Interest Period with respect to the conversion
to the Base Rate Option for any Loan, of a duly completed Loan Request
therefore 

 

32

 

substantially in the form of Exhibit 2.5.1.  Each Loan Request shall be irrevocable and
shall specify (a) the proposed Borrowing Date; (b) the aggregate
amount of the proposed Loans (expressed in the currency in which such Loans
shall be funded if such Loans shall be funded in an Optional Currency)
comprising each Borrowing Tranche, the Dollar Equivalent amount of which shall
be in integral multiples of $1,000,000.00 and not less than $5,000,000.00 for
each Borrowing Tranche to which the Euro-Rate Option applies and in integral
multiples of $100,000.00 and not less than the lesser of $500,000.00 or the
maximum amount available for Borrowing Tranches to which the Base Rate Option
applies; (c) whether the Euro-Rate Option or Base Rate Option shall apply
to the proposed Loans comprising the applicable Borrowing Tranche; (d) the
currency in which such Loans shall be funded if the Borrower is electing the
Euro Rate Option; and (e) in the case of a Borrowing Tranche to which the
Euro-Rate Option applies, an appropriate Interest Period for the Loans
comprising such Borrowing Tranche.

 

2.5.2        Swing Loan Requests.

 

Except
as otherwise provided herein, the Borrower may from time to time prior to the
Expiration Date request PNC Bank to make Swing Loans by delivery to PNC Bank
not later than 1:00 p.m. Pittsburgh time on the proposed Borrowing Date of
a duly completed request therefor substantially in the form of Exhibit 2.5.2 hereto (each, a “Swing Loan Request”).  Each Swing Loan Request shall be irrevocable
and shall specify the proposed Borrowing Date and the principal amount of such
Swing Loan, which shall be in integral multiples of $500,000.00 and not less
than $1,000,000.00.

 

2.6                                Making Revolving Credit
Loans and Swing Loans.

 

2.6.1        Making Revolving Credit Loans.

 

The
Agent shall, promptly after receipt by it of a Loan Request pursuant to Section 2.5 [Revolving Credit
Loan Requests], notify the Lenders of its receipt of such Loan Request
specifying:  (i) the proposed
Borrowing Date and the time and method of disbursement of the Revolving Credit
Loans requested thereby; (ii) the amount and type of each such Revolving
Credit Loan and the applicable Interest Period (if any); and (iii) the
apportionment among the Lenders of such Revolving Credit Loans as determined by
the Agent in accordance with Section 2.3
[Nature of Lenders’ Obligations].  Each
Lender shall remit the principal amount of each Revolving Credit Loan to the
Agent such that the Agent is able to, and the Agent shall, to the extent the
Lenders have made funds available to it for such purpose and subject to Section 7.2 [Each Additional
Loan], fund such Revolving Credit Loans to the Borrower in U.S. Dollars and
immediately available funds at the Principal Office prior to 2:00 p.m.,
Pittsburgh time, on the applicable Borrowing Date, provided that if any
Lender fails to remit such funds to the Agent in a timely manner, the Agent may
elect in its sole discretion to fund with its own funds the Revolving Credit
Loans of such Lender on such Borrowing Date, and such Lender shall be subject
to the repayment obligation in Section 10.13
[Availability of Funds].

 

33

 

2.6.2                        Making Swing Loans.

 

So
long as PNC Bank elects to make Swing Loans, PNC Bank shall, after receipt by
it of a Swing Loan Request pursuant to Section 2.5.2
[Swing Loan Requests], fund such Swing Loan to the Borrower in U.S. Dollars and
immediately available funds at the Principal Office prior to 2:00 p.m.
Pittsburgh time on the Borrowing Date.

 

2.7                                Swing Loan Note.

 

The obligation of the
Borrower to repay the unpaid principal amount of the Swing Loans made to it by
PNC Bank together with interest thereon shall be evidenced by a demand
promissory note of the Borrower dated the Closing Date in substantially the
form attached hereto as Exhibit 1.1(S)(2) payable
to the order of PNC Bank in a face amount equal to the Swing Loan Commitment.

 

2.8                                Use of Proceeds.

 

The proceeds of the
Revolving Credit Loans shall be used to refinance existing Indebtedness and for
general corporate purposes of the Borrower and in accordance with Section 8.1.10 [Use of
Proceeds]; provided, however, that none of the Commitments or the
Loans shall be used for currency speculation or similar purposes.

 

2.9                                Borrowings to Repay Swing
Loans.

 

PNC Bank may, at its
option, exercisable at any time for any reason whatsoever, demand repayment of
the Swing Loans, and each Lender shall make a Revolving Credit Loan in an
amount equal to such Lender’s Ratable Share of the aggregate principal amount
of the outstanding Swing Loans, plus, if PNC Bank so requests, accrued interest
thereon, provided that no Lender shall be obligated in any event to make
Revolving Credit Loans in excess of its Revolving Credit Commitment.  Revolving Credit Loans made pursuant to the
preceding sentence shall bear interest at the Base Rate Option and shall be
deemed to have been properly requested in accordance with Section 2.5.1
[Revolving Credit Loan Requests] without regard to any of the requirements of
that provision.  PNC Bank shall provide
notice to the Lenders that such Revolving Credit Loans are to be made under
this Section 2.9 and of the
apportionment among the Lenders, and the Lenders shall be unconditionally
obligated to fund such Revolving Credit Loans (whether or not the conditions
specified in Section 2.5.1 [Revolving
Credit Loan Requests] or Section 7
[Conditions of Lending and Issuance of Letters of Credit] are then satisfied)
by the time PNC Bank so requests, which shall not be earlier than 3:00 p.m.
Pittsburgh time on the Business Day next after the date the Lenders receive
such notice from PNC Bank.

 

2.10                          Letter of Credit
Subfacility.

 

2.10.1                  Issuance of Letters of
Credit.

 

The
Borrower may request the issuance of a letter of credit (each a “Letter of Credit”) on behalf of
itself or another Loan Party by delivering or having such other Loan Party
deliver to the Agent a completed application and agreement for letters of
credit in 

 

34

 

such form as the Agent may specify from time to time by no later than
11:00 a.m., Pittsburgh time, at least three (3) Business Days, or
such shorter period as may be agreed to by the Agent, in advance of the
proposed date of issuance.  Each Letter
of Credit shall be a Standby Letter of Credit (and may not be a Commercial
Letter of Credit) and may be denominated in either Dollars or an Optional
Currency. Subject to the terms and conditions hereof and in reliance on the
agreements of the other Lenders set forth in this Section 2.10,
the Agent or any of the Agent’s Affiliates will issue a Letter of Credit provided
that each Letter of Credit shall (i) have a maximum maturity of twelve
(12) months from the date of issuance, (ii) in no event expire later than
one hundred eighty (180) days after the Expiration Date, and (iii) in no
event be amended to increase the amount thereof following the issuance thereof
unless the conditions set forth in Section 7.2
[Each Additional Loan or Letter of Credit] have been satisfied as of the date
of such amendment (treating such date the same as the date of issuance of a
Letter of Credit) and provided  further that in no event shall (a) the
Dollar Equivalent amount of Letters of Credit Outstanding exceed, at any one
time, $20,000,000.00 or (b) the Dollar Equivalent Revolving Facility Usage
exceed, at any one time, the Revolving Credit Commitments. It is expressly
agreed that the Existing Letters of Credit shall be deemed to be a Letter of
Credit for all purposes of this Agreement and each other Loan Document.
Notwithstanding any other provision hereof, the Agent shall not be required to
issue any Letter of Credit, if any Lender is at such time a Defaulting Lender
hereunder, unless the Agent has entered into arrangements satisfactory to the
Agent with the Borrower or such Defaulting Lender to eliminate the Agent’s risk
with respect to such Defaulting Lender.

 

2.10.2                  Letter of Credit Fees.

 

The
Borrower shall pay in Dollars (i) to the Agent for the ratable account of
the Lenders a fee (the “Letter of Credit Fee”)
equal to the Applicable Letter of Credit Fee per annum, and (ii) to the
Agent for its own account a fronting fee equal to 1/8% per annum (computed on
the basis of a year of 360 days and actual days elapsed), which fees shall be
computed on the daily average Dollar Equivalent amount of Letters of Credit
Outstanding and shall be payable quarterly in arrears commencing with the first
day of each January, April, July and October following issuance of
each Letter of Credit and on the Expiration Date.  The Borrower shall also pay to the Agent in
Dollars for the Agent’s sole account the Agent’s then in effect customary fees
and administrative expenses payable with respect to the Letters of Credit as
the Agent may generally charge or incur from time to time in connection with
the issuance, maintenance, modification (if any), assignment or transfer (if
any),  negotiation, and administration of
Letters of Credit.

 

2.10.3                  Disbursements,
Reimbursement.

 

2.10.3.1                                             Immediately upon the issuance of each
Letter of Credit, each Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the Agent a participation in such
Letter of Credit and each drawing thereunder in an amount equal to such Lender’s
Ratable Share of the maximum amount available to be drawn under such Letter of
Credit and the amount of such drawing, respectively.

 

35

 

2.10.3.2                                             In the event of any request for a drawing
under a Letter of Credit by the beneficiary or transferee thereof, the Agent
will promptly notify the Borrower. 
Provided that it shall have received such notice, the Borrower shall
reimburse (such obligation to reimburse the Agent shall sometimes be referred
to as a “Reimbursement Obligation”) the
Agent in Dollars prior to 12:00 noon, Pittsburgh time on each date that an
amount is paid by the Agent under any Letter of Credit (each such date, an “Drawing Date”) in an amount equal
to the Dollar Equivalent amount so paid by the Agent.  In the event the Borrower fails to reimburse
the Agent for the full Dollar Equivalent amount of any drawing under any Letter
of Credit by 12:00 noon, Pittsburgh time, on the Drawing Date, the Agent will
promptly notify each Lender thereof, and the Borrower shall be deemed to have
requested that Revolving Credit Loans be made by the Lenders in Dollars under
the Base Rate Option to be disbursed on the Drawing Date under such Letter of Credit,
subject to the amount of the unutilized portion of the Revolving Credit
Commitment and subject to the conditions set forth in Section 7.2
[Each Additional Loan] other than any notice requirements.  Any notice given by the Agent pursuant to
this Section 2.10.3.2 may be oral
if immediately confirmed in writing; provided  that the lack of
such an immediate confirmation shall not affect the conclusiveness or binding
effect of such notice.

 

2.10.3.3                                             Each Lender shall, upon any notice
pursuant to Section 2.10.3.2, make
available to the Agent an amount in Dollars in immediately available funds
equal to its Ratable Share of the Dollar Equivalent amount of the drawing
minus, in the event of any drawing after the Expiration Date, any amount
applied by the Agent against such drawing from amounts deposited to Cash
Collateralize such Obligations pursuant to Section 2.10.10
[Cash Collateral] (whether or not the conditions set forth in Section 7.2 [Each Additional
Loan] have been satisfied), whereupon the participating Lenders shall (subject
to Section 2.10.3.4) each be
deemed to have made a Revolving Credit Loan under the Base Rate Option to the
Borrower in that amount.  If any Lender
so notified fails to make available in Dollars to the Agent for the account of
the Agent the amount of such Lender’s Ratable Share of such Dollar Equivalent
amount by no later than 2:00 p.m., Pittsburgh time on the Drawing Date,
then interest shall accrue, and shall be payable by such Lender on demand, on
such Lender’s obligation to make such payment, from the Drawing Date to the
date on which such Lender makes such payment (i) at a rate per annum equal
to the Federal Funds Effective Rate during the first three days following the
Drawing Date, and (ii) at a rate per annum equal to the rate applicable to
Loans under the Base Rate Option on and after the fourth day following the
Drawing Date.  The Agent will promptly
give notice of the occurrence of the Drawing Date, but failure of the Agent to
give any such notice on the Drawing Date or in sufficient time to enable any
Lender to effect such payment on such date shall not relieve such Lender from
its obligation under this Section 2.10.3.3.

 

2.10.3.4                                             With respect to any unreimbursed drawing
that is not converted into Revolving Credit Loans under the Base Rate Option to
the Borrower in whole or in part as contemplated by Section 2.10.3.2,
because of the Borrower’s failure to satisfy the conditions set forth in Section 7.2 [Each Additional
Loan] other than any notice requirements or for any other reason, the Borrower
shall be deemed to have incurred from the Agent a borrowing (each a “Letter of Credit Borrowing”) in
Dollars in the Dollar Equivalent amount of such drawing.  Such Letter of Credit Borrowing shall be due
and payable on demand (together with 

 

36

 

interest) and
shall bear interest at the rate per annum applicable to the Revolving Credit
Loans under the Base Rate Option.  Each
Lender’s payment to the Agent pursuant to Section 2.10.3.3
shall be deemed to be a payment in respect of its participation in such Letter
of Credit Borrowing and shall constitute a “Participation
Advance” from such Lender in satisfaction of its participation
obligation under this Section 2.10.3.

 

2.10.4                  Repayment of Participation
Advances.

 

2.10.4.5                                             Upon (and only upon) receipt by the Agent
for its account of immediately available funds from the Borrower (i) in
reimbursement of any payment made by the Agent under the Letter of Credit with
respect to which any Lender has made a Participation Advance to the Agent, or (ii) in
payment of interest on such a payment made by the Agent under such a Letter of
Credit, the Agent will pay to each Lender, in the same funds as those received
by the Agent, the amount of such Lender’s Ratable Share of such funds, except
the Agent shall retain the amount of the Ratable Share of such funds of any
Lender that (a) did not make a Participation Advance in respect of such
payment by Agent, or (b) is a Defaulting Lender in such latter case, up to
the amount by which such Defaulting Lender has defaulted.

 

2.10.4.6                                             If the Agent is required at any time to
return to any Loan Party, or to a trustee, receiver, liquidator, custodian, or
any official in any Insolvency Proceeding or otherwise, any portion of the
payments made by any Loan Party to the Agent pursuant to Section 2.10.4.5
in reimbursement of a payment made under the Letter of Credit or interest or
fee thereon, each Lender shall, on demand of the Agent, forthwith return to the
Agent the amount of its Ratable Share of any amounts so returned by the Agent
plus interest thereon from the date such demand is made to the date such
amounts are returned by such Lender to the Agent, at a rate per annum equal to
the Federal Funds Effective Rate in effect from time to time.

 

2.10.5                  Documentation.

 

Each
Loan Party agrees to be bound by the terms of the Agent’s application and
agreement for letters of credit and the Agent’s written regulations and
customary practices relating to letters of credit, though such interpretation
may be different from such Loan Party’s own. 
In the event of a conflict between such application or agreement and
this Agreement, this Agreement shall govern. 
It is understood and agreed that, except in the case of gross negligence
or willful misconduct, as determined by a final non-appealable judgment of a
court of competent jurisdiction, the Agent shall not be liable for any error,
negligence and/or mistakes, whether of omission or commission, in following any
Loan Party’s instructions or those contained in the Letters of Credit or any
modifications, amendments or supplements thereto.

 

2.10.6                  Determinations to Honor
Drawing Requests.

 

In
determining whether to honor any request for drawing under any Letter of Credit
by the beneficiary thereof, the Agent shall be responsible only to determine
that the documents and certificates required to be delivered under such Letter
of Credit have been delivered and that they comply on their face with the
requirements of such Letter of Credit.

 

37

 

2.10.7                  Nature of Participation
and Reimbursement Obligations.

 

Each
Lender’s obligation in accordance with this Agreement to make the Revolving
Credit Loans or Participation Advances, as contemplated by Section 2.10.3
[Disbursements, Reimbursements], as a result of a drawing under a Letter of
Credit, and the Obligations of the Borrower to reimburse the Agent upon a draw
under a Letter of Credit, shall be absolute, unconditional and irrevocable, and
shall be performed strictly in accordance with the terms of this Section 2.10 under all
circumstances, including the following circumstances:

 

(i)                                     any set-off, counterclaim, recoupment,
defense or other right which such Lender may have against the Agent or any of
its Affiliates, the Borrower or any other Person for any reason whatsoever;

 

(ii)                                  the failure of any Loan Party or any
other Person to comply, in connection with a Letter of Credit Borrowing, with
the conditions set forth in Section 2.1
[Revolving Credit Commitments], Section 2.5
[Revolving Credit Loan Requests], Section 2.5.2
[Making Revolving Credit Loans] or Section 7.2
[Each Additional Loan] or as otherwise set forth in this Agreement for the
making of a Revolving Credit Loan, it being acknowledged that such conditions
are not required for the making of a Letter of Credit Borrowing and the
obligation of the Lenders to make Participation Advances under Section 2.10.3 [Disbursements,
Reimbursements].

 

(iii)                               any lack of validity or enforceability of
any Letter of Credit;

 

(iv)                              any claim of breach of warranty that
might be made by any Loan Party or any Lender against any beneficiary of a
Letter of Credit, or the existence of any claim, set-off, recoupment,
counterclaim, crossclaim, defense or other right which any Loan Party or any
Lender may have at any time against a beneficiary, successor beneficiary, any
transferee or assignee of any Letter of Credit or the proceeds thereof (or any
Persons for whom any such transferee may be acting), the Agent or its
Affiliates or any Lender or any other Person or, whether in connection with
this Agreement, the transactions contemplated herein or any unrelated
transaction (including any underlying transaction between any Loan Party or
Subsidiaries of a Loan Party and the beneficiary for which any Letter of Credit
was procured);

 

(v)                                 the lack of power or authority of any
signer of (or any defect in or forgery of any signature or endorsement on) or
the form of or lack of validity, sufficiency, accuracy, enforceability or
genuineness of any draft, demand, instrument, certificate or other document
presented under or in connection with any Letter of Credit, or any fraud or
alleged fraud in connection with any Letter of Credit, or the transport of any
property or provisions of services relating to a Letter of Credit, in each case
even if the Agent or any of the Agent’s Affiliates has been notified thereof;

 

(vi)                              payment by the Agent or any of its
Affiliates under any Letter of Credit against presentation of a demand, draft
or certificate or other document which does not comply with the terms of such
Letter of Credit;

 

38

 

(vii)                           the solvency of, or any acts of omissions
by, any beneficiary of any Letter of Credit, or any other Person having a role
in any transaction or obligation relating to a Letter of Credit, or the
existence, nature, quality, quantity, condition, value or other characteristic
of any property or services relating to a Letter of Credit;

 

(viii)                        any failure by the Agent or any of Agent’s
Affiliates to issue any Letter of Credit in the form requested by any Loan
Party, unless the Agent has received written notice from such Loan Party of
such failure within three (3) Business Days after the Agent shall have
furnished such Loan Party a copy of such Letter of Credit and such error is
material and no drawing has been made thereon prior to receipt of such notice;

 

(ix)                                any adverse change in the business,
operations, properties, assets, condition (financial or otherwise) or prospects
of any Loan Party or Subsidiaries of a Loan Party;

 

(x)                                   any breach of this Agreement or any other
Loan Document by any party thereto;

 

(xi)                                the occurrence or continuance of an
Insolvency Proceeding with respect to any Loan Party;

 

(xii)                             the fact that an Event of Default or a
Potential Default shall have occurred and be continuing;

 

(xiii)                          the fact that the Expiration Date shall
have passed or this Agreement or the Commitments hereunder shall have been
terminated; and

 

(xiv)                         any other circumstance or happening whatsoever,
whether or not similar to any of the foregoing.

 

2.10.8                  Indemnity.

 

In
addition to amounts payable as provided in Section 10.8
[Reimbursement and Indemnification of Agent by Borrower],  the
Borrower hereby agrees to protect, indemnify, pay and save harmless the Agent
and any of Agent’s Affiliates that has issued a Letter of Credit from and
against any and all claims, demands, liabilities, damages, taxes, penalties,
interest, judgments, losses, costs, charges and expenses (including reasonable
fees, expenses and disbursements of counsel and allocated costs of internal
counsel) which the Agent or any of Agent’s Affiliates may incur or be subject
to as a consequence, direct or indirect, of the issuance of any Letter of
Credit, other than as a result of (i) the gross negligence, bad faith, or
willful misconduct of the Agent as determined by a final judgment of a court of
competent jurisdiction or (ii) the wrongful dishonor by the Agent or any
of Agent’s Affiliates of a proper demand for payment made under any Letter of
Credit, except if such dishonor resulted from any act or omission, whether
rightful or wrongful, of any present or future de jure or de facto government
or governmental authority (all such acts or omissions herein called “Governmental Acts”).

 

39

 

2.10.9                  Liability for Acts and
Omissions.

 

As
between any Loan Party and the Agent, or the Agent’s Affiliates, such Loan
Party assumes all risks of the acts and omissions of, or misuse of the Letters
of Credit by, the respective beneficiaries of such Letters of Credit.  In furtherance and not in limitation of the
foregoing, the Agent shall not be responsible for any of the following
including any losses or damages to any Loan Party or other Person or property
relating therefrom:  (i) the form,
validity, sufficiency, accuracy, genuineness or legal effect of any document
submitted by any party in connection with the application for an issuance of
any such Letter of Credit, even if it should in fact prove to be in any or all
respects invalid, insufficient, inaccurate, fraudulent or forged (even if the
Agent or the Agent’s Affiliates shall have been notified thereof); (ii) the
validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign any such Letter of Credit or the rights or
benefits thereunder or proceeds thereof, in whole or in part, which may prove
to be invalid or ineffective for any reason; (iii) the failure of the
beneficiary of any such Letter of Credit, or any other party to which such
Letter of Credit may be transferred, to comply fully with any conditions
required in order to draw upon such Letter of Credit or any other claim of any
Loan Party against any beneficiary of such Letter of Credit, or any such transferee,
or any dispute between or among any Loan Party and any beneficiary of any
Letter of Credit or any such transferee; (iv) errors, omissions,
interruptions or delays in transmission or delivery of any messages, by mail,
cable, telegraph, telex or otherwise, whether or not they be in cipher; (v) errors
in interpretation of technical terms; (vi) any loss or delay in the
transmission or otherwise of any document required in order to make a drawing
under any such Letter of Credit or of the proceeds thereof; (vii) the
misapplication by the beneficiary of any such Letter of Credit of the proceeds
of any drawing under such Letter of Credit; or (viii) any consequences
arising from causes beyond the control of the Agent or the Agent’s Affiliates,
as applicable, including any Governmental Acts, and none of the above shall
affect or impair, or prevent the vesting of, any of the Agent’s or the Agent’s
Affiliates rights or powers hereunder. 
Nothing in the preceding sentence shall relieve the Agent from liability
for the Agent’s bad faith, gross negligence or willful misconduct in connection
with actions or omissions described in such clauses (i) through (viii) of
such sentence, as determined by a final non-appealable judgment of a court of
competent jurisdiction.  In no event
shall the Agent or the Agent’s Affiliates be liable to any Loan Party for any
indirect, consequential, incidental, punitive, exemplary or special damages or
expenses (including without limitation attorneys’ fees), or for any damages
resulting from any change in the value of any property relating to a Letter of
Credit.

 

Without
limiting the generality of the foregoing, the Agent and each of its Affiliates (a) may
rely on any oral or other communication believed in good faith by the Agent or
such Affiliate to have been authorized or given by or on behalf of the
applicant for a Letter of Credit, (b) may honor any presentation if the
documents presented appear on their face substantially to comply with the terms
and conditions of the relevant Letter of Credit; (c) may honor a
previously dishonored presentation under a Letter of Credit, whether such
dishonor was pursuant to a court order, to settle or compromise any claim of
wrongful dishonor, or otherwise, and shall be entitled to reimbursement to the
same extent as if such presentation had initially been honored, together with
any interest paid by the Agent or its Affiliate; (d) may honor any drawing
that is payable upon presentation of a statement advising negotiation or
payment, upon receipt of such statement (even if such statement indicates that
a draft or other document is being 

 

40

 

delivered separately), and shall not be liable for any failure of any
such draft or other document to arrive, or to conform in any way with the
relevant Letter of Credit; (e) may pay any paying or negotiating bank
claiming that it rightfully honored under the laws or practices of the place
where such bank is located; and (f) may settle or adjust any claim or
demand made on the Agent or its Affiliate in any way related to any order
issued at the applicant’s request to an air carrier, a letter of guarantee or
of indemnity issued to a carrier or any similar document (each an “Order”) and honor any drawing in
connection with any Letter of Credit that is the subject to such Order,
notwithstanding that any drafts or other documents presented in connection with
such Letter of Credit fail to conform in any way with such Letter of Credit.

 

In
furtherance and extension and not in limitation of the specific provisions set
forth above, any action taken or omitted by the Agent or the Agent’s Affiliates
under or in connection with the Letters of Credit issued by it or any documents
and certificates delivered thereunder, if taken or omitted in good faith, shall
not put the Agent or the Agent’s Affiliates under any resulting liability to
the Borrower or any Lender.

 

2.10.10            Cash Collateral.

 

Upon the request of the
Agent, if, on the Expiration Date, any Letter of Credit Obligation for any reason
remains outstanding, the Borrower shall immediately Cash Collateralize the then
outstanding amount of all Letter of Credit Obligations. The Borrower hereby
grants to the Agent, for the benefit of the Agent and the Lenders, a security
interest in all cash collateral pledged pursuant to this Section or
otherwise under this Agreement.

 

2.11                          Utilization of Commitments
in Optional Currencies.

 

2.11.1                  Periodic Computations of
Dollar Equivalent Amounts of Loans and Letters of Credit Outstanding.

 

The
Agent will determine the Dollar Equivalent amount of (i) proposed
Revolving Credit Loans or Letters of Credit to be denominated in an Optional
Currency as of the requested Borrowing Date or date of issuance, as the case
may be, and (ii) outstanding Revolving Credit Loans denominated in an
Optional Currency as of the end of each Interest Period (each such date under
clauses (i) and (ii), a “Computation Date”).

 

2.11.2                  Notices From Lenders That
Optional Currencies Are Unavailable to Fund New Loans.

 

The
Lenders shall be under no obligation to make the Revolving Credit Loans
requested by the Borrower which are denominated in an Optional Currency if any
Lender notifies the Agent by 5:00 p.m. (Pittsburgh time) four (4) Business
Days prior to the Borrowing Date for such Revolving Credit Loans that such
Lender cannot provide its share of such Revolving Credit Loans in such Optional
Currency due to the introduction of, or any change in, any applicable Law or
any change in the interpretation or administration thereof by any Official Body
charged with the administration or interpretation thereof, or compliance by
such Lender (or any of its lending offices) with any request or directive
(whether or not having the force of Law) 

 

41

 

of any such Official Body which would make it unlawful or impossible
for such Lender (or any of its lending offices) to honor its obligations to
make a Loan in an Optional Currency.  In
the event the Agent timely receives a notice from a Lender pursuant to the
preceding sentence, the Agent will notify the Borrower no later than 12:00 noon
(Pittsburgh time) three (3) Business Days prior to the Borrowing Date for
such Revolving Credit Loans that the Optional Currency is not then available
for such Revolving Credit Loans, and the Agent shall promptly thereafter notify
the Lenders of the same.  If the Borrower
receives a notice described in the preceding sentence, the Borrower may, by
notice to the Agent not later than 5:00 p.m. (Pittsburgh time) three (3) Business
Days prior to the Borrowing Date for such Revolving Credit Loans, withdraw the
Loan Request for such Revolving Credit Loans. 
If the Borrower withdraws such Loan Request, the Agent will promptly
notify each Lender of the same and the Lenders shall not make such Revolving
Credit Loans.  If the Borrower does not
withdraw such Loan Request before such time, (i) the Borrower shall be
deemed to have requested that the Revolving Credit Loans referred to in its
Loan Request shall be made in Dollars in an amount equal to the Dollar
Equivalent amount of such Revolving Credit Loans and shall bear interest under
the Base Rate Option, and (ii) the Agent shall promptly deliver a notice
to each Lender stating: (a) that such Revolving Credit Loans shall be made
in Dollars and shall bear interest under the Base Rate Option, (b) the
aggregate amount of such Revolving Credit Loans, and (c) such Lender’s
Ratable Share of such Revolving Credit Loans.

 

2.11.3                Notices From Lenders That
Optional Currencies Are Unavailable to Fund Renewals of the Euro-Rate Option.

 

If the
Borrower delivers a Loan Request requesting that the Lenders renew the
Euro-Rate Option with respect to an outstanding Borrowing Tranche of Revolving
Credit Loans denominated in an Optional Currency, the Lenders shall be under no
obligation to renew such Euro-Rate Option if any Lender delivers to the Agent a
notice by 5:00 p.m. (Pittsburgh time) four (4) Business Days prior to
effective date of such renewal that such Lender cannot continue to provide
Revolving Credit Loans in such Optional Currency due to the introduction of, or
any change in, any applicable Law or any change in the interpretation or
administration thereof by any Official Body charged with the administration or
interpretation thereof, or compliance by such Lender (or any of its lending
offices with) any request or directive (whether or not having the force of Law)
of any such Official Body which would make it unlawful or impossible for such
Lender (or any of its lending offices) to honor its obligations to make a Loan
in an Optional Currency.  In the event
the Agent timely receives a notice from a Lender pursuant to the preceding
sentence, the Agent will notify the Borrower no later than 12:00 noon (Pittsburgh
time) three (3) Business Days prior to the renewal date that the renewal
of such Revolving Credit Loans in such Optional Currency is not then available,
and the Agent shall promptly thereafter notify the Lenders of the same.  If the Agent shall have so notified the
Borrower that any such continuation of Optional Currency Loans is not then
available, any notice of renewal with respect thereto shall be deemed
withdrawn, and such Optional Currency Loans shall be redenominated into Loans
in Dollars subject to the Base Rate Option with effect from the last day of the
Interest Period with respect to any such Optional Currency Loans.  The Agent will promptly notify the Borrower
and the Lenders of any such redenomination, and in such notice, the Agent will
state the aggregate Dollar Equivalent amount of the redenominated 

 

42

 

Optional Currency Loans as of the Computation Date with respect thereto
and such Lender’s Ratable Share thereof.

 

2.11.4                  European Monetary Union.

 

2.11.4.1                                          Payments In Euros Under Certain
Circumstances.

 

If, as
a result of the implementation of the European monetary union, (i) any
Optional Currency ceases to be lawful currency of the nation issuing the same
and is replaced by a European common currency (the “Euro”)
or (ii) any Optional Currency and the Euro are at the same time recognized
by any governmental authority of the nation issuing such currency as lawful
currency of such nation and the Agent or the Required Lenders shall so request
in a notice delivered to the Borrower, then any amount payable hereunder by any
part hereto in such Optional Currency shall instead by payable in the Euro and
the amount so payable shall be determined by translating the amount payable in
such Optional Currency to the Euro at the exchange rate recognized by the
European Central Lender for the purpose of implementing the European monetary
union (and the provisions governing payments in Optional Currencies in this
Agreement shall apply to such payment in the Euro as if such payment in the
Euro were a payment in an Optional Currency). 
Prior to the occurrence of the event or events described in clause (i) or
(ii) of the preceding sentence, each amount payable hereunder in any
Optional Currency will continue to be payable only in that currency, except as otherwise
provided herein.

 

2.11.4.2                                          Additional Compensation
Under Certain Circumstances.

 

The
Borrower agrees, at the request of any Lender to compensate such Lender for any
loss, cost, expense or reduction in return that such Lender shall reasonably
determine shall be incurred or sustained by such Lender as a result of the
implementation of European monetary union and that would not have been incurred
or sustained but for the transactions provided for herein.  A certificate of any Lender setting forth such
Lender’s determination of the amount or amounts necessary to compensate such
Lender shall be delivered to the Borrower and shall be conclusive absent
manifest error so long as such determination is made on a reasonable
basis.  The Borrower shall pay such
Lender the amount shown as due on any such certificate within ten (10) days
after receipt thereof.

 

2.11.5                  Requests for Additional
Optional Currencies.

 

The
Borrower may deliver to the Agent a written request that Revolving Credit Loans
hereunder also be permitted to be made in any other lawful currency (other than
Dollars), in addition to the currencies specified in the definition of “Optional
Currency” herein provided that such currency must be freely traded in the
offshore interbank foreign exchange markets, freely transferable, freely
convertible into Dollars and available to the Lenders in the applicable
interbank market.  The Agent will
promptly notify the Lenders of any such request promptly after the Agent receives
such request.  The Agent and each Lender
may grant or accept such request in their sole discretion.  The Agent will promptly notify the Borrower
of the acceptance or rejection by the Agent and each of the Lenders of the
Borrower’s 

 

43

 

request.  The requested currency
shall be approved as an Optional Currency hereunder only if the Agent and all
of the Lenders approve of the Borrower’s request.

 

2.12                          Currency Repayments.

 

Notwithstanding anything
contained herein to the contrary, the entire amount of principal of and
interest on any Loan made in an Optional Currency shall be repaid in the same
Optional Currency in which such Loan was made, provided, however,
that if it is impossible or illegal for the Borrower to effect payment of a
Loan in the Optional Currency in which such Loan was made, or if the Borrower
defaults in its obligations to do so, the Required Lenders may at their option
permit such payment to be made (i) at and to a different location,
subsidiary, affiliate or correspondent of Agent, or (ii) in the Equivalent
Amount of Dollars or (iii) in an Equivalent Amount of such other currency
(freely convertible into Dollars) as the Required Lenders may solely at their
option designate.  Upon any events
described in (i) through (iii) of the preceding sentence, the
Borrower shall make such payment and Borrower agrees to hold each Lender
harmless from and against any loss incurred by any Lender arising from the cost
to such Lender of any premium, any costs of exchange, the cost of hedging and covering
the Optional Currency in which such Loan was originally made, and from any
change in the value of Dollars, or such other currency, in relation to the
Optional Currency that was due and owing. 
Such loss shall be calculated for the period commencing with the first
day of the Interest Period for such Loan and continuing through the date of
payment thereof.  Without prejudice to
the survival of any other agreement of Borrower hereunder, Borrower’s
obligations under this Section 2.12
shall survive termination of this Agreement.

 

2.13                          Optional Currency Amounts.

 

Notwithstanding anything
contained herein to the contrary, the Agent may, with respect to notices by the
Borrower for Loans in an Optional Currency or voluntary prepayments of less
than the full amount of an Optional Currency Borrowing Tranche, engage in
reasonable rounding of the Optional Currency amounts requested to be loaned or
repaid; and, in such event, the Agent shall promptly notify the Borrower and
the Lenders of such rounded amounts and the Borrower’s request or notice shall
thereby be deemed to reflect such rounded amounts.

 

2.14                          Right to Increase
Revolving Credit Commitments.

 

Provided that there is no Event of Default or Potential Default, if the
Borrower wishes to increase the Revolving Credit Commitments, the Borrower
shall notify the Agent thereof, provided that any such increase shall be in a
minimum of $10,000,000.00 and the aggregate of all such increases in the
Revolving Credit Commitments shall not exceed $50,000,000.00 from and after the
Closing Date.  Each Lender shall have the
right at any time within fifteen (15) Business Days following such notice to
increase its respective Revolving Credit Commitment so as to provide such added
commitment pro rata in accordance with such Lender’s Ratable Share, and any
portion of such requested increase that is not provided by any Lender shall: (i) first
be available to the other Lenders pro rata in accordance with their Ratable
Share, (ii) next be available to the other Lenders in such a manner as the
Borrower, the Agent and those Lenders shall agree, and (iii) thereafter,
to the extent not provided by the Lenders, to any 

 

44

 

additional lender proposed by the Borrower, which is approved by the
Agent (which approval shall not be unreasonably withheld) and that becomes a
party to this Agreement pursuant to Section 11.11
[Successors and Assigns]. In the event of any such increase in the aggregate
Revolving Credit Commitments effected pursuant to the terms of this Section 2.14, new Revolving
Credit Notes shall, to the extent necessary, be executed and delivered by the
Borrower in exchange for the surrender of the existing Revolving Credit Notes
and the Agent shall amend Schedule 1.1(B) to
reflect any additional Lender(s) and any change in Lenders’ Ratable
Shares.

 

3.             [Intentionally Omitted.]

 

4.             INTEREST RATES

 

4.1                                Interest Rate Options.

 

The Borrower shall pay
interest in respect of the outstanding unpaid principal amount of the Revolving
Credit Loans as selected by it from the Base Rate Option or Euro-Rate Option
set forth below applicable to the Revolving
Credit  Loans, it being understood that,
subject to the provisions of this Agreement, the Borrower may select different
Interest Rate Options and different Interest Periods to apply simultaneously to
the Revolving Credit Loans comprising different Borrowing Tranches and may
convert to or renew one or more Interest Rate Options with respect to all or
any portion of the Revolving Credit Loans comprising any Borrowing Tranche, provided
that there shall not be at any one time outstanding more than six (6) Borrowing
Tranches in the aggregate among all of the Revolving Credit Loans, and provided
further that Swing Loans shall bear interest at such rate, based upon the
Base Rate, determined from time to time by PNC Bank.  If at any time the designated rate applicable
to any Loan made by any Lender exceeds such Lender’s highest lawful rate, the
rate of interest on such Lender’s Loan shall be limited to such Lender’s
highest lawful rate. Interest on the principal amount of each Loan made in an
Optional Currency as provided in Section 2.11.4,
shall be paid by the Borrower in such Optional Currency.

 

4.1.1                        Revolving Credit Interest
Rate Options.

 

The
Borrower shall have the right to select from the following Interest Rate
Options applicable to the Revolving Credit Loans (subject to the provisions above regarding Swing Loans), except
that no Loan to which a Base Rate shall apply may be made in an Optional
Currency:

 

(i)                                     Revolving Credit Base Rate
Option:  A fluctuating rate per annum (computed
on the basis of a year of 360 days, and actual days elapsed, provided that, for
Loans made in an Optional Currency for which a 365 day basis is the only market
practice available to the Agent, such rate shall be calculated on the basis of
a year of 365 days, for the actual days) equal to the Base Rate plus the
Applicable Margin, such interest rate to change automatically from time to time
effective as of the effective date of each change in the Base Rate or
Applicable Margin; or

 

45

 

(ii)                                  Revolving Credit Euro-Rate
Option:  A rate per annum (computed on the basis of a
year of 360 days and actual days elapsed, provided  that, for
Loans made in an Optional Currency for which a 365 day basis is the only market
practice available to the Agent, such rate shall be calculated on the basis of
a year of 365 days, for the actual days) equal to the Euro-Rate plus the
Applicable Margin, such interest rate to change automatically from time to time
effective as of the effective date of each change in Applicable Margin.

 

4.1.2                        Rate Quotations.

 

The
Borrower may call the Agent on or before the date on which a Loan Request is to
be delivered to receive an indication of the interest rates and the applicable
currency exchange rates then in effect, but it is acknowledged that such
projection shall not be binding on the Agent or the Lenders nor affect the rate
of interest or the calculation of Equivalent Amounts which thereafter are
actually in effect when the election is made.

 

4.2                                 Interest Periods.

 

At any time when the
Borrower shall select, convert to or renew a Euro-Rate Option, the Borrower
shall notify the Agent thereof by delivering a Loan Request no later than 11:00 a.m.
(Pittsburgh time) at least (i) four (4) Business Days prior to the
effective date of such Interest Rate Option, with respect to an Optional
Currency Loan, and (ii) three (3) Business Days prior to the
effective date of such Interest Rate Option with respect to a Dollar Loan. The
notice shall specify an Interest Period during which such Interest Rate Option
shall apply.  Notwithstanding the
preceding sentence, the following provisions shall apply to any selection of,
renewal of, or conversion to a Euro-Rate Option:

 

4.2.1                        Amount of Borrowing
Tranche.

 

The
Dollar Equivalent amount of each Borrowing Tranche of Euro-Rate Loans shall be
in integral multiples of $1,000,000.00 and not less than $5,000,000.00; and

 

4.2.2                        Renewals.

 

In the
case of the renewal of a Euro-Rate Option at the end of an Interest Period, the
first day of the new Interest Period shall be the last day of the preceding
Interest Period, without duplication in payment of interest for such day.

 

4.3                                 Interest After Default.

 

To the extent permitted
by Law, upon the occurrence of an Event of Default and until such time such
Event of Default shall have been cured or waived:

 

4.3.1                        Letter of Credit Fees,
Interest Rate.

 

the
Letter of Credit Fees and the rate of interest for each Loan otherwise
applicable pursuant to Section 2.10.2
[Letter of Credit Fees] or Section 4.1
[Interest Rate Options], respectively, shall be increased by 2.0% per annum;
and

 

46

 

4.3.2                        Other Obligations.

 

each
other Obligation hereunder if not paid when due shall bear interest at a rate
per annum equal to the sum of the rate of interest applicable under the
Interest Rate Option plus an additional two percent (2%) per annum from the
time such Obligation becomes due and payable and until it is paid in full.

 

4.3.3                        Acknowledgment.

 

The
Borrower acknowledges that the increase in rates referred to in this Section 4.3 reflects, among
other things, the fact that such Loans or other amounts have become a
substantially greater risk given their default status and that the Lenders are
entitled to additional compensation for such risk; and all such interest shall
be payable by Borrower upon demand by Agent.

 

4.4                                 Euro-Rate Unascertainable;
Illegality; Increased Costs; Deposits Not Available.

 

4.4.1                        Unascertainable.

 

If on
any date on which a Euro-Rate would otherwise be determined, the Agent shall
have determined that:

 

(i)                                     adequate and reasonable means do not
exist for ascertaining such Euro-Rate, or

 

(ii)                                  a contingency has occurred which
materially and adversely affects the London interbank eurodollar market
relating to the Euro-Rate, the Agent shall have the rights specified in Section 4.4.3 [Agent’s and
Lender’s Rights].

 

4.4.2                        Illegality; Increased
Costs; Deposits Not Available.

 

If at
any time any Lender shall have determined that:

 

(i)                                     the making, maintenance or funding of any
Loan to which a Euro-Rate Option applies has been made impracticable or
unlawful by compliance by such Lender in good faith with the adoption of any
change in any Law or any interpretation or application thereof occurring after
the Closing Date by any Official Body or with any request or directive of any
such Official Body (whether or not having the force of Law), or

 

(ii)                                  such Euro-Rate Option will not adequately
and fairly reflect the cost to such Lender of the establishment or maintenance
of any such Loan, or

 

(iii)                               after making all reasonable efforts,
deposits of the relevant amount in Dollars or in the Optional Currency (as
applicable) for the relevant Interest Period for a Loan, or to banks generally,
to which a Euro-Rate Option applies, respectively, are not 

 

47

 

available to such Lender
with respect to such Loan, or to banks generally, in the interbank eurodollar
market,

 

then the Agent shall have
the rights specified in Section 4.4.3
[Agent’s and Lender’s Rights].

 

4.4.3                        Agent’s and Lender’s
Rights.

 

In the
case of any event specified in Section 4.4.1
[Unascertainable] above, the Agent shall promptly so notify the Lenders and the
Borrower thereof, and in the case of an event specified in Section 4.4.2
[Illegality; Increased Costs; Deposits Not Available] above, such Lender shall
promptly so notify the Agent and endorse a certificate to such notice as to the
specific circumstances of such notice, and the Agent shall promptly send copies
of such notice and certificate to the other Lenders and the Borrower.  Upon such date as shall be specified in such
notice (which shall not be earlier than the date such notice is given), the
obligation of (i) the Lenders, in the case of such notice given by the Agent,
or (ii) such Lender, in the case of such notice given by such Lender, to
allow the Borrower to select, convert to or renew a Euro-Rate Option or select
an Optional Currency (as applicable) shall be suspended until the Agent shall
have later notified the Borrower, or such Lender shall have later notified the
Agent, of the Agent’s or such Lender’s, as the case may be, determination that
the circumstances giving rise to such previous determination no longer
exist.  If at any time the Agent makes a
determination under Section 4.4.1
[Unascertainable] and the Borrower has previously notified the Agent of its
selection of, conversion to or renewal of a Euro-Rate Option and such Interest
Rate Option has not yet gone into effect, such notification shall be deemed to
provide for the selection of, conversion to or renewal of the Base Rate Option
otherwise available with respect to such Loans. 
If any Lender notifies the Agent of a determination under Section 4.4.2 [Illegality;
Increased Costs; Deposits Not Available], the Borrower shall, subject to the
Borrower’s indemnification Obligations under Section 5.7
[Indemnity], as to any Loan of the Lender to which a Euro-Rate Option applies,
on the date specified in such notice either, as applicable, (a) convert
such Loan to the Base Rate Option otherwise available with respect to such
Loan, or select a different Optional Currency or Dollars, or (b) prepay
such Loan in accordance with Section 5.4
[Voluntary Prepayments].  Absent due
notice from the Borrower of conversion or prepayment, such Loan shall
automatically be converted to the Base Rate Option otherwise available with
respect to such Loan upon such specified date.

 

4.5                                 Selection of Interest Rate
Options.

 

If the Borrower fails to
select a new Interest Period or Optional Currency to apply to any Borrowing
Tranche of Loans under the Euro-Rate Option at the expiration of an existing
Interest Period applicable to such Borrowing Tranche in accordance with the
provisions of Section 4.2 [Interest
Periods], the Borrower shall be deemed to have converted such Borrowing Tranche
to the Base Rate Option or to a Dollar Loan, as applicable, commencing upon the
last day of the existing Interest Period.

 

48

 

5.                                       PAYMENTS

 

5.1                                 Payments.

 

All payments and
prepayments to be made in respect of principal, interest, Commitment Fees,
Letter of Credit Fees, Agent’s Fee, Optional Currency Loan Processing Fees or
other fees or amounts due from the Borrower hereunder shall be payable prior to
11:00 a.m., Pittsburgh time, on the date when due without presentment,
demand, protest or notice of any kind, all of which are hereby expressly waived
by the Borrower, and without set-off, counterclaim or other deduction of any
nature, and an action therefore shall immediately accrue.  Such payments shall be made to the Agent at
the Principal Office for the account of PNC Bank with respect to the Swing
Loans and for the ratable accounts of the Lenders with respect to the Revolving
Credit Loans, in U.S. Dollars except that payment of principal or interest
shall be made in the currency in which such Loan was made, and in immediately
available funds, and the Agent shall promptly distribute such amounts to the
Lenders in immediately available funds, provided that in the event
payments are received by 11:00 a.m., Pittsburgh time, by the Agent with
respect to the Loans and such payments are not distributed to the Lenders on
the same day received by the Agent, the Agent shall pay the Lenders the Federal
Funds Effective Rate in the case of Loans or other amounts due in Dollars, or
the Overnight Rate in the case of Loans or other amounts due in an Optional
Currency, with respect to the amount of such payments for each day held by the
Agent and not distributed to the Lenders. 
The Agent’s and each Lender’s statement of account, ledger or other
relevant record shall, in the absence of manifest error, be conclusive as the
statement of the amount of principal of and interest on the Loans and other
amounts owing under this Agreement (including the Equivalent Amounts of the
applicable currencies where such computations are required) and shall be deemed
an “account stated.”

 

5.2                                 Pro Rata Treatment of
Lenders.

 

Each borrowing of
Revolving Credit Loans shall be allocated to each Lender according to its
Ratable Share, and each selection of, conversion to or renewal of any Interest
Rate Option applicable to Revolving Credit Loans and each payment or prepayment
by the Borrower with respect to principal or interest on the Revolving Credit Loans
or Commitment Fees, Letter of Credit Fees, or other fees (except for the Agent’s
Fee, the Optional Currency Loan Processing Fee or other fees payable solely for
the Agent’s account) or amounts due from the Borrower hereunder to the Lenders
with respect to the Revolving Credit Loans, shall (except as otherwise provided
with respect to a Delinquent Lender and except as provided in Section 4.4.3 [Agent’s and
Lender’s Rights] in the case of an event specified in Section 4.4
[Euro-Rate Unascertainable; Etc.], Section 5.4.2
[Replacement of a Lender] or Section 5.5
[Additional Compensation in Certain Circumstances]) be made in proportion to
the applicable Revolving Credit Loans outstanding from each Lender and, if no
such Loans are then outstanding, in proportion to the Ratable Share of each
Lender.  Notwithstanding any of the
foregoing, each borrowing or payment or prepayment by the Borrower of
principal, interest, fees or other amounts from the Borrower with respect to Swing
Loans shall be made by or to PNC Bank for its own account according to Section 2 [Revolving Credit
and Swing Loan Facility] except for such Swing Loan borrowings that have been
converted to Revolving Credit Loans in accordance with Section 2.9
[Borrowings to Repay Swing Loans].

 

49

 

5.3                                 Interest Payment Dates.

 

Interest on Loans to
which the Base Rate Option applies shall be due and payable in arrears on the
first day of each January, April, July and October after the date
hereof and on the Expiration Date or upon acceleration of the Loans.  Interest on Loans to which the Euro-Rate
Option applies shall be due and payable in the currency in which such Loan was
made on the last day of each Interest Period for those Loans and, if such
Interest Period is longer than three (3) Months, also on the 90th day of
such Interest Period. Interest on mandatory prepayments of principal under Section 5.4.6 [Mandatory
Prepayment Currency Fluctuation] shall be made in the currency in which such
Loan was made and shall be due on the date such mandatory prepayment is due.
Interest on the principal amount of each Loan or other monetary Obligation
shall be due and payable in the currency in which such Loan was made on demand
after such principal amount or other monetary Obligation becomes due and
payable (whether on the stated maturity date, upon acceleration or otherwise).

 

5.4                                 Voluntary Prepayments,
Mandatory Prepayments.

 

5.4.1                        Right to Prepay.

 

The
Borrower shall have the right at its option from time to time to prepay the
Revolving Credit Loans in whole or part without premium or penalty (except as
provided in Section 5.4.2
[Replacement of a Lender] or in Section 5.5
[Additional Compensation in Certain Circumstances]) in the currency in which
such Loan was made:

 

(i)                                     at any time with respect to any Revolving
Credit Loan to which the Base Rate Option applies,

 

(ii)                                  on the last day of the applicable
Interest Period with respect to Revolving Credit Loans to which a Euro-Rate
Option applies,

 

(iii)                               on the date specified in a notice by any
Lender pursuant to Section 4.4
[Euro-Rate Unascertainable, Etc.] with respect to any Revolving Credit Loan to
which a Euro-Rate Option applies.

 

Whenever
the Borrower desires to prepay any part of the Revolving Credit Loans, it shall
provide a prepayment notice to the Agent by 1:00 p.m. (at least three (3) Business
Days prior to the date of prepayment of the Revolving Credit Loans made in
Dollars to which the Euro-Rate Option applies, four (4) Business Days
prior to the date of prepayment of the Revolving Credit Loans made in an
Optional Currency and at least one (1) Business Day prior to the date of
prepayment of the Revolving Credit Loans to which the Base Rate Option applies)
or no later than 1:00 p.m., Pittsburgh time, on the date of prepayment of
Swing Loans, setting forth the following information:

 

(a)                                  the date, which shall be a Business Day,
on which the proposed prepayment is to be made;

 

50

 

(b)                                 a statement indicating the application of
the prepayment between the Swing Loans and Revolving Credit Loans; and

 

(c)                                  the total principal amount and currency
of such prepayment, the Dollar Equivalent amount of which shall not be less
than $1,000,000.00 for any Swing Loan (or integral multiples of $500,000.00
thereabove) or not less than $5,000,000.00 (or integral multiples of
$1,000,000.00 thereabove) for any Revolving Credit Loan subject to the
Euro-Rate Option, or not less than $500,000.00 (or integral multiples of
$100,000.00 thereabove) for any Revolving Credit Loan subject to the Base Rate
Option.

 

All prepayment notices shall be irrevocable.  The principal amount of the Revolving Credit
Loans for which a prepayment notice is given, together with interest on such
principal amount except with respect to Revolving Credit Loans to which the
Base Rate Option applies, shall be due and payable on the date specified in
such prepayment notice as the date on which the proposed prepayment is to be
made in the currency in which such Loan was made.  Except as provided in Section 4.4.3
[Agent’s and Lender’s rights], if the Borrower prepays a Revolving Credit Loan
but fails to specify the applicable Borrowing Tranche which the Borrower is
prepaying, the prepayment shall be applied (A) first to Revolving Credit
Loans to which the Base Rate Option applies, then to Dollar Revolving Credit
Loans to which the Euro-Rate Option applies, and then to Optional Currency
Loans. Any prepayment hereunder shall be subject to the Borrower’s Obligation
to indemnify the Lenders under Section 5.7
[Indemnity].

 

5.4.2                        Replacement of a Lender.

 

In the
event any Lender (i) gives notice under Section 4.4
[Euro-Rate Unascertainable, Etc.], (ii) requests
compensation under Section 5.5.1
[Increased Costs Generally] or under Section 5.5.2
[Capital Requirements], or requires the Borrower to pay any additional amount
to any Lender or any Official Body for the account of any Lender pursuant to Section 5.7 [Taxes], (iii) is a Defaulting Lender,
or (iv) becomes subject to the control of an Official Body (other than
normal and customary supervision), or (v) is a Non-Consenting Lender
referred to in Section 11.1 [Modifications,
Amendments or Waivers], then in any such event the Borrower may, at its sole
expense, upon notice to such Lender and the Agent, require such Lender to
assign and delegate, without recourse (in accordance with and subject to the
restrictions contained in, and consents required by, Section 11.11
[Successors and Assigns], all of its interests, rights and obligations under this
Agreement and the related Loan Documents to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment), provided that:

 

(i)                                     the Borrower shall have paid to the Agent
the assignment fee specified in Section 11.11
[Successors and Assigns];

 

(ii)                                  such Lender shall have received payment
of an amount equal to the outstanding principal of its Loans and Participation
Advances, accrued interest thereon, accrued fees and all other amounts payable
to it hereunder and under the other Loan Documents (including any amounts under
Section 5.7 [Indemnity] from
the assignee (to the extent of such 

 

51

 

outstanding principal and
accrued interest and fees) or the Borrower (in the case of all other amounts),
including, without limitation, under Section 5.5.1
[Increased Costs Generally], Section 5.5.2
[Capital Requirements] and Section 5.6
[Taxes];

 

(iii)                               in the case of any such assignment
resulting from a claim for compensation under Section 5.5.1
[Increased Costs Generally] or Section 5.5.2
[Capital Requirements] or payments required to be made pursuant to Section 5.6 [Taxes], such
assignment will result in a reduction in such compensation or payments
thereafter; and

 

(iv)                              such assignment does not conflict with
applicable Law.

 

A Lender shall not be
required to make any such assignment or delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the
Borrower to require such assignment and delegation cease to apply.

 

5.4.3                        Change of Lending Office.

 

Each
Lender agrees that upon the occurrence of any event giving rise to increased
costs or other special payments under Section 4.4.2
[Illegality, Etc.] or Section 5.5.1
[Increased Costs, Etc.] with respect to such Lender, it will if requested by
the Borrower, use reasonable efforts (subject to overall policy considerations
of such Lender) to designate another Lending Office for any Loans or Letters of
Credit affected by such event, provided that such designation is made on
such terms that such Lender and its Lending Office suffer no economic, legal or
regulatory disadvantage, with the object of avoiding the consequence of the
event giving rise to the operation of such Section.  Nothing in this Section 5.4.3
shall affect or postpone any of the Obligations of the Borrower or any other
Loan Party or the rights of the Agent or any Lender provided in this Agreement.

 

5.4.4                        Voluntary Reduction of
Revolving Credit Commitments.

 

The
Borrower shall have the right, upon not less than three (3) Business Days’
written irrevocable notice to the Agent provided no later than 11:00 a.m.
on the date such notice is provided, to terminate the Revolving Credit
Commitments or, from time to time, to reduce the amount of the Revolving Credit
Commitments, which notice shall specify the date and amount of any such
reduction and otherwise be substantially in the form of Exhibit 5.4.4
(a “Commitment Reduction Notice”).  Any such reduction shall be in a minimum
amount equal to $5,000,000.00 or in integral multiples of $1,000,000.00
thereabove, provided, that the Revolving Credit Commitments may
not be reduced below the aggregate principal amount of all Dollar Equivalent
Revolving Facility Usage.  Each reduction
of Revolving Credit Commitments shall ratably reduce the Revolving Credit
Commitments of the Lenders.

 

5.4.5                        Application Among Interest
Rate Options.

 

All
prepayments pursuant to this Section 5.4
shall first be applied among the Interest Rate Options to the principal amount
of the Loans subject to the Base Rate Option, then to Loans subject to a
Euro-Rate Option and then to Optional Currency Loans. In 

 

52

 

accordance with Section 5.7
[Indemnity], the Borrower shall indemnify the Lenders for any loss or expense,
including loss of margin, incurred with respect to any such prepayments applied
against Loans subject to a Euro-Rate Option on any day other than the last day
of the applicable Interest Period.

 

5.4.6                        Mandatory Prepayment -
Currency Fluctuations.

 

If on
any Computation Date the Dollar Equivalent Revolving Facility Usage is equal to
or greater than 100% of the Commitments as a result of a change in exchange
rates between one (1) or more Optional Currencies and Dollars, then the
Agent shall notify the Borrower of the same. 
The Borrower shall pay or prepay the Loans (subject to Borrower’s
indemnity obligations under Section 5.4
[Voluntary Prepayments, Mandatory Prepayments] and Section 5.5
[Additional Compensation in Certain Circumstances]) within one (1) Business
Day after receiving such notice such that the Dollar Equivalent Revolving
Facility Usage shall not exceed the aggregate Commitments after giving effect
to such payments or prepayments.

 

5.4.7                        Expiration Date.

 

Unless
sooner paid in full in connection with the termination of the Commitments, the
Borrower shall pay all outstanding Obligations hereunder, including without
limitation, principal, interest and fees in Dollars in immediately available funds on the Expiration Date except in
the case of any Letter of Credit Borrowing with respect to any such Letter of
Credit drawn on or after the Expiration Date which such Letter of Credit
Borrowing shall be due on demand in accordance with Section 2.10.3.4.

 

5.5                                 Additional Compensation in
Certain Circumstances.

 

5.5.1                        Increased Costs Generally. 
If any
Change in Law shall:

 

(i)                                     impose, modify or deem applicable any
reserve, special deposit, compulsory loan, insurance charge or similar
requirement against assets of, deposits with or for the account of, or credit
extended or participated in by, any Lender (except any reserve requirement
reflected in the Euro-Rate) or the Agent;

 

(ii)                                  subject any Lender or the Agent to any
tax of any kind whatsoever with respect or this Agreement, any Letter of
Credit, any participation in a Letter of Credit or any Loan under the Euro-Rate
Option made by it, or change the basis of taxation of payments to such Lender
or the Agent in respect thereof (except for Indemnified Taxes or Other Taxes
covered by Section 5.6 [Taxes] and
the imposition of, or any change in the rate of, any Excluded Tax payable by
such Lender or the Agent); or

 

(iii)                               impose on any Lender, the Agent or the
London interbank market any other condition, cost or expense affecting this
Agreement or Loan under the Euro-Rate Option made by such Lender or any Letter
of Credit or participation therein;

 

and the result of any of
the foregoing shall be to increase the cost to such Lender of making or
maintaining any Loan under the Euro-Rate Option (or of maintaining its
obligation to make any 

 

53

 

such Loan), or to
increase the cost to such Lender or the Agent of participating in, issuing or
maintaining any Letter of Credit (or of maintaining its obligation to
participate in or to issue any Letter of Credit), or to reduce the amount of
any sum received or receivable by such Lender or the Agent hereunder (whether
of principal, interest or any other amount) then, upon request of such Lender
or the Agent, which is provided to the Borrower with the certificate referred
to in Section 5.5.3 [Certificates
for Reimbursement, etc.] the Borrower will pay to such Lender or the Agent, as
the case may be, in accordance with Section 5.5.3
[Certificates for Reimbursement, etc.] and Section 5.5.4
[Delay in Requests] such additional amount or amounts as will compensate such
Lender or the Agent, as the case may be, for such additional costs incurred or
reduction suffered.

 

5.5.2                        Capital Requirements.

 

If any
Lender or the Agent determines that any Change in Law affecting such Lender or
the Agent or any lending office of such Lender or such Lender’s or the Agent’s
holding company, if any, regarding capital requirements has or would have the
effect of reducing the rate of return on such Lender’s or the Agent’s capital
or on the capital of such Lender’s or the Agent’s holding company, if any, as a
consequence of this Agreement, the Commitments of such Lender or the Loans made
by, or participations in Letters of Credit held by, such Lender, or the Letters
of Credit issued by the Agent, to a level below that which such Lender or the
Agent or such Lender’s or the Agent’s holding company could have achieved but
for such Change in Law (taking into consideration such Lender’s or the Agent’s
policies and  the policies of such Lender’s
or the Agent’s holding company with respect to capital adequacy), then from
time to time the Borrower will pay to such Lender or the Agent, as the case may
be, in accordance with the terms of Section 5.5.3
[Certificates for Reimbursement, etc.] and Section 5.5.4
[Delay in Requests] such additional amount or amounts as will compensate such
Lender or the Agent or such Lender’s or the Agent’s holding company for any
such reduction suffered.

 

5.5.3                        Certificates for
Reimbursement; Repayment of Outstanding Loans; Borrowing of New Loans.

 

A
certificate of a Lender or the Agent setting forth the amount or amounts
necessary to compensate such Lender or the Agent or its holding company, as the
case may be, as specified in Section 5.5.1
[Increased Costs Generally], Section 5.5.2
[Capital Requirements] or Section 5.5.5
[Additional Costs with Respect to Loans in Optional Currencies] and delivered
to the Borrower shall be conclusive absent manifest error. The Borrower shall
pay such Lender or the Agent, as the case may be, the amount shown as due on
any such certificate within ten (10) days after receipt thereof, subject
to the provisions of Section 5.5.5
[Additional Costs with Respect to Loans in Optional Currencies].

 

5.5.4                        Delay in Requests.

 

Failure
or delay on the part of any Lender or the Agent to demand compensation pursuant
to this Section 5.5 shall not
constitute a waiver of such Lender’s or the Agent’s right to demand such
compensation, provided that the Borrower shall not be required to
compensate a Lender or the Agent 
pursuant to this Section 5.5
for any increased costs incurred 

 

54

 

or reductions suffered more than nine months prior to the date that
such Lender or the Agent, as the case may be, notifies the Borrower of the
Change in Law giving rise to such increased costs or reductions and of such
Lender’s or the Agent’s intention to claim compensation therefore (except that,
if Change in Law giving rise to such increased costs or reductions in
retroactive, then the nine (9) month period referred to above shall be
extended to include the period of retroactive effect thereof).

 

5.5.5                        Additional Costs with
Respect to Loans in Optional Currencies.

 

In the event any Lender
incurs costs in complying with minimum reserve requirements of any Official
Body with respect to making or maintaining any Loans in an Optional Currency,
then upon written request of such Lender to the Borrower (with copy to the
Agent) which is accompanied by the certificate referred in Section 5.5.3
[Certificates for Reimbursement, etc.], the Borrower will pay to the Agent
for such Lender in accordance with Section 5.5.3
[Certificate for Reimbursement, etc.] such additional amount or amounts as will
compensate such Lender for such additional costs incurred. At such Lender’s
option, stated in its written request, such reimbursement may be calculated as
an additional per annum rate to the interest rate applicable to any Loan in an
Optional Currency for which such costs are incurred, and payable by the
Borrower with each interest payment on such Loan.

 

5.6                                 Taxes.

 

5.6.1                        Payments Free of Taxes.

 

Any
and all payments by or on account of any obligation of the Borrower hereunder
or under any other Loan Documents shall be made free and clear of and without
reduction or withholding for any Indemnified Taxes or Other Taxes; provided
that if the Borrower shall be required by applicable Law to deduct any
Indemnified Taxes (including any Other Taxes) from such payments, then (i) the
sum payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section 5.6) the Agent or
Lender, as the case may be, receives an amount equal to the sum it would have
received had no such deductions been made, (ii) the Borrower shall make
such deductions and (iii)  the Borrower shall timely pay the full amount
deducted to the relevant Official Body in accordance with applicable Law.

 

5.6.2                        Payment of Other Taxes by
the Borrower.

 

Without
limiting the provisions of Section 5.6.1
[Payments Free of Taxes] above, the Borrower shall timely pay any Other Taxes
to the relevant Official Body in accordance with applicable Law.

 

5.6.3                        Indemnification by the
Borrower.

 

The
Borrower shall indemnify the Agent and each Lender, within ten (10) days
after demand therefore, for the full amount of any Indemnified Taxes or Other
Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts 

 

55

 

payable under this Section 5.6)
paid by the Agent, or such Lender, as the case may be, and any penalties,
interest and reasonable expenses arising therefrom or with respect thereto,
whether or not such Indemnified Taxes of Other Taxes were correctly or legally
imposed or asserted by the relevant Official Body. A certificate as to the
amount of such payment or liability delivered to the Borrower by a Lender (with
copy to the Agent), or by the Agent on its own behalf or on behalf of a Lender,
shall be conclusive absent manifest error.

 

5.6.4                        Evidence of Payments.

 

As
soon as practicable after any payment of Indemnified Taxes or Other Taxes by
the Borrower to a Official Body, the Borrower shall deliver to the Agent the
original or a certified copy of a receipt issued by such Official Body
evidencing such payment, a copy of the return reporting such payment or other
evidence of such payment reasonably satisfactory to the Agent.

 

5.6.5                        Status of Lenders.

 

Any
Foreign Lender that is entitled to an exemption from or reduction of
withholding tax under the Law of the jurisdiction in which the Borrower is
resident for tax purposes, or any treaty to which such jurisdiction is a party,
with respect to payments hereunder or under any other Loan Document shall
deliver to the Borrower (with a copy to the Agent), at the time or times
prescribed by applicable Law or reasonably requested by the Borrower or the
Agent, such properly completed and executed documentation prescribed by
applicable Law as will permit such payments to be made without withholding or
at a reduced rate of withholding. 
Notwithstanding the submission of a such documentation claiming a
reduced rate of or exemption from U.S. withholding tax, the Agent shall be
entitled to withhold United States federal income taxes at the full 30%
withholding rate if in its reasonable judgment it is required to do so under
the due diligence requirements imposed upon a withholding agent under §1.1441-7(b) of
the United States Income Tax Regulations. 
Further, the Agent is indemnified under §1.1461-1(e) of the United
States Income Tax Regulations against any claims and demands of any Lender or
assignee or participant of a Lender for the amount of any tax it deducts and
withholds in accordance with regulations under §1441 of the Internal Revenue
Code.  In addition, any Lender, if
requested by the Borrower or the Agent, shall deliver such other documentation
prescribed by applicable Law or reasonably requested by the Borrower or the
Agent as will enable the Borrower or the Agent to determine whether or not such
Lender is subject to backup withholding or information reporting requirements.

 

Without
limiting the generality of the foregoing, in the event that the Borrower is
resident for tax purposes in the United States of America, any Foreign Lender
shall deliver to the Borrower and the Agent (in such number of copies as shall
be requested by the recipient) on or prior to the date on which such Foreign
Lender becomes a Lender under this Agreement (and from time to time thereafter
upon the request of the Borrower or the Agent, but only if such Foreign Lender
is legally entitled to do so), whichever of the following is applicable:

 

(i)                                     duly completed copies of IRS Form W-8BEN
claiming eligibility for benefits of an income tax treaty to which the United
States of America is a party,

 

56

 

(ii)                                  duly completed copies of  IRS Form W-8ECI,

 

(iii)                               in the case of a Foreign Lender claiming
the benefits of the exemption for portfolio interest under section 881(c) of
the Code, (x) a certificate to the effect that such Foreign Lender is not (A) a
“bank” within the meaning of section 881(c)(3)(A) of the Code, (B) a “10
percent shareholder” of the Borrower within the meaning of section 881(c)(3)(B) of
the Code, or (C) a “controlled foreign corporation” described in section
881(c)(3)(C) of the Code and (y) duly completed copies of IRS Form W-8BEN,
or

 

(iv)                              any other form prescribed by applicable
Law as a basis for claiming exemption from or a reduction in United States
Federal withholding tax duly completed together with such supplementary
documentation as may be prescribed by applicable Law to permit the Borrower to
determine the withholding or deduction required to be made.

 

5.6.6                        Refund.

 

If the
Agent or any Lender determines, in its reasonable discretion, that it has
received a refund or credit in respect of any Taxes or Other Taxes as to which
it has been indemnified by the Borrower or with respect to which the Borrower
has paid additional amounts pursuant to this Section 5.6
[Taxes], it shall as promptly as reasonably possible pay over such refund or
credit to the Borrower (but only to the extent of indemnity payments made, or
additional amounts paid, by the Borrower under this Section 5.6
[Taxes] with respect to the Taxes or Other Taxes giving rise to such refund or
credit), net of all out-of-pocket expenses of the Agent or such Lender and
without interest (other than any interest paid by the relevant Official Body
with respect to such refund or credit); provided, that the Borrower,
upon the request of the Agent or such Lender, agrees to repay the amount paid
over to the Borrower (plus any penalties, interest or other charges imposed by
the relevant Official Body) to the Agent or such Lender in the event the Agent
or such Lender is required to repay such refund to such Official Body.  This paragraph shall not be construed to
require the Agent or any Lender to make available its tax returns (or any other
information relating to its taxes which it deems confidential) to the Borrower
or any other Person.

 

5.7                                 Indemnity.

 

In addition to the
compensation or payments required by Section 5.5
[Increased Costs] or Section 5.6
[Taxes], the Borrower shall indemnify each Lender against all liabilities,
losses or expenses (including loss of margin, any loss or expense incurred in
liquidating or employing deposits from third parties and any loss or expense
incurred in connection with funds acquired by a Lender to fund or maintain
Loans subject to an Euro-Rate Option) which such Lender sustains or incurs as a
consequence of any

 

(i)                                     payment, prepayment, conversion or
renewal of any Loan to which an Euro-Rate Option applies on a day other than
the last day of the corresponding Interest Period (whether or not such payment
or prepayment is mandatory, voluntary or automatic and whether or not such
payment or prepayment is then due),

 

57

 

(ii)                                  attempt by the Borrower to revoke
(expressly, by later inconsistent notices or otherwise) in whole or part any
Loan Requests under Section 2.5
[Revolving Credit Loan Requests; Swing Loan Requests] or Section 4.2
[Interest Periods] or notice relating to prepayments under Section 5.4
[Voluntary Prepayments, Mandatory Prepayments],

 

(iii)                               default by the Borrower in the
performance or observance of any covenant or condition contained in this
Agreement or any other Loan Document, including any failure of the Borrower to
pay when due (by acceleration or otherwise) any principal, interest, Commitment
Fee or any other amount due hereunder, or

 

(iv)                              assignment of such Lender’s interest,
rights and obligations under this Agreement and the related Loan Documents as
required by Borrower under Section 5.4.2
[Replacement of a Lender].

 

If any Lender sustains or
incurs any such loss or expense, it shall from time to time notify the Borrower
of the amount determined in good faith by such Lender (which determination may
include such assumptions, allocations of costs and expenses and averaging or
attribution methods as such Lender shall deem reasonable) to be necessary to
indemnify such Lender for such loss or expense. 
Such notice shall set forth in reasonable detail the basis for such
determination.  Such amount shall be due
and payable by the Borrower to such Lender ten (10) Business Days after
such notice is given.

 

5.8                                 Interbank Market
Presumption.

 

For all purposes of this Agreement and each Note with respect to any aspects
of the Euro-Rate, or any Loan under the Euro-Rate Option or any Optional
Currency, each Lender and the Agent shall be presumed to have obtained rates,
funding, currencies, deposits, and the like in the applicable interbank market
regardless whether it did so or not; and, each Lender’s and Agent’s
determination of amounts payable under, and actions required or authorized by, Section 4.4 [Euro-Rate
Unascertainable; Illegality, Increased Costs; Deposits Not Available] and Section 5.7 [Indemnity] shall be
calculated, at each Lender’s and Agent’s option, as though each Lender and
Agent funded each Borrowing Tranche of Loans under the Euro-Rate Option through
the purchase of deposits of the types and maturities corresponding to the
deposits used as a reference in accordance with the terms hereof in determining
the Euro-Rate applicable to such Loans, whether in fact that is the case.

 

5.9                                 Notes.

 

Upon the request of any
Lender, the Revolving Credit Loans made by such Lender may be evidenced by a
Revolving Credit Note, dated the Closing Date and in an amount equal to the
Revolving Credit Commitment of such Lender, in the form of Exhibit 1.1(R).

 

5.10                           Settlement Date
Procedures.

 

In order to minimize the
transfer of funds between the Lenders and the Agent, the Borrower may borrow,
repay and reborrow Swing Loans and PNC Bank may make Swing Loans 

 

58

 

as provided in Section 2.2.1 [Revolving
Credit Loans] hereof.  On any Business
Day, the Agent may notify each Lender of its Ratable Share of the total of the
Revolving Credit Loans and the Swing Loans (each a “Required
Share”).  Prior to 2:30 p.m.
(Pittsburgh time) on the date of such notice, each Lender shall pay to the
Agent the amount equal to the difference between its Required Share and its
Revolving Credit Loans, and the Agent shall pay to each Lender its Ratable
Share of all payments made by the Borrower to the Agent with respect to the
Revolving Credit Loans.  The Agent shall
also effect settlement in accordance with the foregoing sentence on the
proposed Borrowing Dates for Revolving Credit Loans, on any date where payments
of principal of any Loan is required to be paid by any Loan Party hereunder,
and may at its option (and in consultation with the Borrower) effect settlement
on any other Business Day.  These
settlement procedures are established solely as a matter of administrative
convenience, and nothing contained in this Section 5.10
shall relieve the Lenders of their obligations to fund Revolving Credit Loans
on dates other than a Settlement Date pursuant to this Section 2.10.  The Agent may at any time at its option for
any reason whatsoever require each Lender to pay immediately to the Agent such
Lender’s Ratable Share of the outstanding Revolving Credit Loans and each
Lender may at any time require the Agent to pay immediately to such Bank its
Ratable Share of all payments made by the Borrower to the Agent with respect to
the Revolving Credit Loans.

 

5.11                           Judgment Currency.

 

5.11.1                  Currency Conversion Procedures
for Judgments.

 

If for
the purposes of obtaining judgment in any court it is necessary to convert a
sum due hereunder or under a Note in any currency (the “Original
Currency”) into another currency (the “Other
Currency”), the parties hereby agree, to the fullest extent
permitted by Law, that the rate of exchange used shall be that at which in
accordance with normal banking procedures each Lender could purchase the
Original Currency with the Other Currency after any premium and costs of
exchange on the Business Day preceding that on which final judgment is given.

 

5.11.2                  Indemnity in Certain
Events.

 

The
obligation of the Borrower in respect of any sum due from the Borrower to any
Lender hereunder shall, notwithstanding any judgment in an Other Currency,
whether pursuant to a judgment or otherwise, be discharged only to the extent
that, on the Business Day following receipt by any Lender of any sum adjudged
to be so due in such Other Currency, such Lender may in accordance with normal
banking procedures purchase the Original Currency with such Other
Currency.  If the amount of the Original
Currency so purchased is less than the sum originally due to such Lender in the
Original Currency, the Borrower agrees, as a separate obligation and
notwithstanding any such judgment or payment, to indemnify such Lender against
such loss.

 

59

 

6.                                       REPRESENTATIONS AND
WARRANTIES

 

6.1                                 Representations and
Warranties.

 

The Loan Parties, jointly
and severally, represent and warrant to the Agent and each of the Lenders as
follows:

 

6.1.1                        Organization and
Qualification.

 

Each
Loan Party and each Subsidiary of each Loan Party is a corporation, partnership
or limited liability company duly organized, validly existing and in good standing
under the laws of its jurisdiction of organization.  Each Loan Party and each Subsidiary of each
Loan Party has the lawful power to own or lease its properties and to engage in
the business it presently conducts or proposes to conduct.  Each Loan Party and each Subsidiary of each
Loan Party is duly licensed or qualified and in good standing in each
jurisdiction where the property owned or leased by it or the nature of the
business transacted by it or both makes such licensing or qualification necessary,
except in jurisdictions where the failure to be so qualified or in good
standing would not reasonably be expected to result in a Material Adverse
Effect.

 

6.1.2                        [Intentionally Omitted.]

 

6.1.3                        Subsidiaries.

 

As of
the Closing Date, Schedule 6.1.3
states the name of each of the Borrower’s Subsidiaries, its jurisdiction of
incorporation, and whether it is a Material Domestic Subsidiary or a Material
First Tier Foreign Subsidiary.  Schedule 6.1.3 also states as
of the Closing Date for each Material First Tier Foreign Subsidiary its
authorized capital stock, its issued and outstanding shares and the owners
thereof if it is a corporation, its outstanding partnership interests and
owners thereof if it is a partnership and its outstanding limited liability company
interests, interests assigned to managers thereof and the voting rights
associated therewith if it is a limited liability company.  The Borrower and each Subsidiary of the
Borrower has valid title to all of the Subsidiary Shares it purports to own, free
and clear in each case of any Lien.  All
Subsidiary Shares have been validly issued, and all Subsidiary Shares are fully
paid and nonassessable.  All capital
contributions and other consideration required to be made or paid in connection
with the issuance of the Subsidiary Shares have been made or paid, as the case
may be.  As of the Closing Date, there
are no options, warrants or other rights outstanding to purchase any such
Subsidiary Shares except as indicated on Schedule 6.1.3.

 

6.1.4                        Power and Authority.

 

Each
Loan Party has full power to enter into, execute, deliver and carry out this
Agreement and the other Loan Documents to which it is a party, to incur the
Indebtedness contemplated by the Loan Documents and to perform its Obligations
under the Loan Documents to which it is a party, and all such actions have been
duly authorized by all necessary proceedings on its part.

 

60

 

6.1.5                        Validity and Binding
Effect.

 

This
Agreement has been duly and validly executed and delivered by each Loan Party,
and each other Loan Document which any Loan Party is required to execute and
deliver on or after the date hereof will have been duly executed and delivered
by such Loan Party on the required date of delivery of such Loan Document.  This Agreement and each other Loan Document
constitutes, or will constitute, legal, valid and binding obligations of each
Loan Party which is or will be a party thereto on and after its date of delivery
thereof, enforceable against such Loan Party in accordance with its terms,
except to the extent that enforceability of any of such Loan Document may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting the enforceability of creditors’ rights generally or limiting
the right of specific performance.

 

6.1.6                        No Conflict.

 

Neither
the execution and delivery of this Agreement or the other Loan Documents by any
Loan Party nor the consummation of the transactions herein or therein
contemplated or compliance with the terms and provisions hereof or thereof by
any of them will conflict with, constitute a default under or result in any
breach of (i) the terms and conditions of the certificate of
incorporation, bylaws, certificate of limited partnership, partnership
agreement, certificate of formation, limited liability company agreement or
other organizational documents of any Loan Party or (ii) any Law or any
material agreement or instrument or order, writ, judgment, injunction or decree
to which any Loan Party or any of its Subsidiaries is a party or by which it or
any of its Subsidiaries is bound or to which it is subject, or result in the
creation or enforcement of any Lien, charge or encumbrance whatsoever upon any
property (now or hereafter acquired) of any Loan Party or any of its
Subsidiaries (other than Liens granted under the Loan Documents), unless such
conflict, default or breach would not be reasonably expected to result in any
Material Adverse Effect.

 

6.1.7                        Litigation.

 

There
are no actions, suits, proceedings or investigations pending or, to the
knowledge of any Loan Party, threatened against such Loan Party or any
Subsidiary of such Loan Party at law or equity before any Official Body which
individually or in the aggregate would reasonably be expected to result in any
Material Adverse Effect.  None of the
Loan Parties or any Subsidiaries of any Loan Party is in violation of any
order, writ, injunction or any decree of any Official Body which would
reasonably be expected to result in any Material Adverse Effect.

 

6.1.8                        Title to Properties.

 

Each
Loan Party and each Subsidiary of each Loan Party has title to or valid
leasehold interest in or other valid rights to use all properties, assets and
other rights which it purports to own or lease or which are reflected as owned
or leased on its books and records, except for such property where the failure
to maintain such title or interest, individually or in the 

 

61

 

aggregate, would not reasonably be expected to result in a Material
Adverse Effect, and none of such property is subject to any Lien, except
Permitted Liens.

 

6.1.9                        Financial Statements.

 

(i)                                     Historical Statements. 
The Borrower has delivered to the Agent copies of its audited
consolidated year-end financial statements for and as of the end of the fiscal
year ended December 31, 2008 (the “Annual Statements”).  In addition, the Borrower has delivered to
the Agent copies of its unaudited consolidated interim financial statements for
the fiscal year to date and as of the end of the fiscal quarter ended March 31,
2009 (the “Interim Statements”) (the
Annual and Interim Statements being collectively referred to as the “Historical Statements”).  The Historical Statements fairly represent
the consolidated financial condition of the Borrower and its Subsidiaries as of
their dates and the results of operations for the fiscal periods then ended and
have been prepared in accordance with GAAP, subject (in the case of the Interim
Statements) to normal year-end audit adjustments.

 

(ii)                                  No Material Adverse Change. 
Since December 31, 2008, no Material Adverse Change has occurred.

 

6.1.10                  Use of Proceeds; Margin
Stock; Section 20 Subsidiaries.

 

6.1.10.1                                          General.

 

The
Loan Parties intend to use the proceeds of the Loans in accordance with Section 2.8  [Use of Proceeds]
and Section 8.1.10 [Use of
Proceeds].

 

6.1.10.2                                          Margin Stock.

 

None
of the Loan Parties or any Subsidiaries of any Loan Party engages or intends to
engage principally, or as one of its important activities, in the business of
extending credit for the purpose, immediately, incidentally or ultimately, of
purchasing or carrying margin stock (within the meaning of Regulation U).  No part of the proceeds of any Loan has been
or will be used, immediately, incidentally or ultimately, to purchase or carry
any margin stock or to extend credit to others for the purpose of purchasing or
carrying any margin stock or to refund Indebtedness originally incurred for
such purpose, or for any purpose which entails a violation of or which is
inconsistent with the provisions of the regulations of the Board of Governors
of the Federal Reserve System.  None of
the Loan Parties or any Subsidiary of any Loan Party holds or intends to hold
margin stock in such amounts that more than 25% of the reasonable value of the
assets of any Loan Party or Subsidiary of any Loan Party are or will be
represented by margin stock.

 

6.1.10.3                                          Section 20
Subsidiaries.

 

The
Loan Parties do not intend to use and shall not use any portion of the proceeds
of the Loans, directly or indirectly, to purchase during the underwriting
period, or for thirty (30) days thereafter, Ineligible Securities being
underwritten by a Section 20 Subsidiary.

 

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6.1.11                  Full Disclosure.

 

Neither
this Agreement nor any other Loan Document, nor any certificate, statement,
agreement or other documents furnished by the Borrower to the Agent or any
Lender in connection herewith or therewith, when taken as a whole, contains any
untrue statement of a material fact or omits to state a material fact necessary
in order to make the statements contained herein and therein, in light of the
circumstances under which they were made, not misleading.  As of the Closing Date there is no fact known
to any Loan Party which would reasonably be expected to have a Material Adverse
Effect that has not been set forth in this Agreement or in the certificates,
statements, agreements or other documents furnished in writing to the Agent and
the Lenders prior to or at the date hereof in connection with the transactions
contemplated hereby.

 

6.1.12                  Taxes.

 

All
federal, state, local and other tax returns required to have been filed with
respect to each Loan Party and each Subsidiary of each Loan Party have been filed,
and payment or adequate provision has been made for the payment of all taxes,
fees, assessments and other governmental charges which have or may become due
pursuant to said returns or to assessments received, except to the extent that
such taxes, fees, assessments and other charges are being contested in good
faith by appropriate proceedings diligently conducted and for which such
reserves or other appropriate provisions, if any, as shall be required by GAAP
shall have been made.  There are no
agreements or waivers extending the statutory period of limitations applicable
to any federal income tax return of any Loan Party or Subsidiary of any Loan
Party for any period.

 

6.1.13                  Consents and Approvals.

 

No
consent, approval, exemption, order or authorization of, or a registration or
filing with, any Official Body or any other Person is required by any Law or
any agreement in connection with the execution, delivery and carrying out of
this Agreement and the other Loan Documents by any Loan Party, except for those
which shall have been obtained or made on or prior to the Closing Date.

 

6.1.14                  No Event of Default;
Compliance with Instruments.

 

As of
the Closing Date after giving effect to the borrowings or other extensions of
credit to be made on the Closing Date under or pursuant to the Loan Documents,
no Event of Default or Potential Default exists.  None of the Loan Parties or any Subsidiaries
of any Loan Party is in violation of (i) any term of its certificate of
incorporation, bylaws, certificate of limited partnership, partnership
agreement, certificate of formation, limited liability company agreement or
other organizational documents or (ii) any material agreement or
instrument to which it is a party or by which it or any of its properties may
be subject or bound where such violation would reasonably be expected to
constitute a Material Adverse Effect.

 

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6.1.15                  Patents, Trademarks,
Copyrights, Licenses, Etc.

 

Each
Loan Party and each Subsidiary of each Loan Party owns or possesses all the
material patents, trademarks, service marks, trade names, copyrights, licenses,
registrations, franchises, permits and rights necessary to own and operate its
properties and to carry on its business as presently conducted and planned to
be conducted by such Loan Party or Subsidiary, without known possible, alleged
or actual conflict with the rights of others which would reasonably be expected
to result in a Material Adverse Effect.

 

6.1.16                  Insurance.

 

The
policies and bonds applicable to the Loan Parties and their Subsidiaries
provide adequate coverage from reputable and financially sound insurers in
amounts sufficient to insure the assets and risks of the Loan Parties and their
Subsidiaries taken as a whole in accordance with prudent business practice in
the industry of the Loan Parties and their Subsidiaries.

 

6.1.17                  Compliance with Laws.

 

The
Loan Parties and their Subsidiaries are in compliance with all applicable Laws
(other than Environmental Laws which are specifically addressed in Section 6.1.22 [Environmental
and Safety Matters]) in all jurisdictions in which any Loan Party or Subsidiary
of any Loan Party is presently or will be doing business except where the
failure to do so would not reasonably be expected to constitute a Material
Adverse Effect.

 

6.1.18                  [Intentionally Omitted]

 

6.1.19                  Investment Companies;
Regulated Entities.

 

None
of the Loan Parties or any Subsidiaries of any Loan Party is an “investment
company” registered or required to be registered under the Investment Company
Act of 1940 or under the “control” of an “investment company” as such terms are
defined in the Investment Company Act of 1940 and shall not become such an “investment
company” or under such “control.”  None
of the Loan Parties or any Subsidiaries of any Loan Party is subject to any
other Federal or state statute or regulation limiting its ability to incur
Indebtedness for borrowed money.

 

6.1.20                  Plans and Benefit
Arrangements.

 

(i)                                     The Borrower and each other member of the
ERISA Group are in compliance in all respects with any applicable provisions of
ERISA with respect to all Benefit Arrangements, Plans and Multiemployer
Plans.  There has been no Prohibited
Transaction with respect to any Benefit Arrangement or any Plan or, to the best
knowledge of the Borrower, with respect to any Multiemployer Plan or Multiple
Employer Plan, which could result in any liability of the Borrower or any other
member of the ERISA Group.  The Borrower
and all other members of the ERISA Group have made when due any and all
payments required to be made under any agreement relating to a Multiemployer
Plan or a Multiple Employer Plan or any Law pertaining 

 

64

 

thereto.  With respect to each Plan and Multiemployer
Plan, the Borrower and each other member of the ERISA Group (i) have
fulfilled in all respects their obligations under the minimum funding standards
of ERISA, (ii) have not incurred any liability to the PBGC, and (iii) have
not had asserted against them any penalty for failure to fulfill the minimum
funding requirements of ERISA.  All
Plans, Benefit Arrangements and Multiemployer Plans have been administered in
accordance with their terms and applicable Law.

 

(ii)                                  No event requiring notice to the PBGC
under Section 302(f)(4)(A) of ERISA has occurred or is reasonably
expected to occur with respect to any Plan, and no amendment with respect to
which security is required under Section 307 of ERISA has been made or is
reasonably expected to be made to any Plan.

 

(iii)                               Neither the Borrower nor any other member
of the ERISA Group has incurred or reasonably expects to incur any withdrawal
liability under ERISA to any Multiemployer Plan or Multiple Employer Plan.  Neither the Borrower nor any other member of
the ERISA Group has been notified by any Multiemployer Plan or Multiple
Employer Plan that such Multiemployer Plan or Multiple Employer Plan has been
terminated within the meaning of Title IV of ERISA and, to the best knowledge
of the Borrower, no Multiemployer Plan or Multiple Employer Plan is reasonably
expected to be reorganized or terminated, within the meaning of Title IV of
ERISA.

 

(iv)                              Notwithstanding any provision of this
Agreement to the contrary, no representation or warranty contained in this Section 6.1.20 shall apply
with respect to any act or omission described in this Section 6.1.20
that, as of the applicable date described in Section 6.1.20
hereof, would not reasonably be expected to cause a Material Adverse
Effect.  In addition, to the extent that
a Benefit Arrangement, Multiemployer Plan or a Plan is described in Section 4(b) of
ERISA, any representation and warranty contained in this Section 6.1.20
shall be deemed to have been made at the applicable time in accordance with the
best knowledge of Borrower.

 

6.1.21                  Employment Matters.

 

Each
of the Loan Parties and each of their Subsidiaries is in compliance with all
applicable federal, state and local labor and employment Laws including those
related to equal employment opportunity and affirmative action, labor
relations, minimum wage, overtime, child labor, medical insurance continuation,
worker adjustment and relocation notices, immigration controls and worker and
unemployment compensation, where the failure to comply would reasonably be
expected to result in a Material Adverse Effect.  There are no outstanding grievances,
arbitration awards or appeals arising therefrom or current or threatened
strikes, picketing, hand-billing or other work stoppages or slowdowns at
facilities of any of the Loan Parties or any of their Subsidiaries which in any
case would reasonably be expected to result in a Material Adverse Effect.

 

65

 

6.1.22                  Environmental and Safety
Matters.

 

The
Loan Parties and their Subsidiaries are in compliance with all applicable
Environmental Laws and all applicable Safety Laws except where the failure to
do so would not be reasonably expected to constitute a Material Adverse Effect.
The Loan Parties and their Subsidiaries have all Required Environmental Permits
and are in compliance with all such Required Environmental Permits, except
where the failure to do so would not be reasonably expected to constitute a
Material Adverse Effect, all such Required Environmental Permits are in full
force and effect and none of the Loan Parties has received any written notice
from an Official Body that such Official Body has or intends to suspend or
revoke, whether in whole or in part, any such Required Environmental
Permit.  None of the Loan Parties or any
Subsidiaries of any Loan Party has received any Environmental Complaint, none
of the Loan Parties has any reason to believe that an Environmental Complaint
might be received, and there are no pending or, to any Loan Party’s knowledge,
threatened Environmental Complaints relating to any Loan Party or Subsidiary of
any Loan Party or, to any Loan Party’s knowledge, any prior owner, operator or
occupant of any of the Properties pertaining to, or arising out of, any
Contamination, Remedial Actions or violations of Environmental Laws or Required
Environmental Permits.  None of the Loan
Parties or any Subsidiaries of any Loan Party has received any Safety
Complaint, none of the Loan Parties has any reason to believe that a Safety Complaint
might be received and there are no pending or, to any Loan Party’s knowledge,
threatened Safety Complaints relating to any Loan Party or Subsidiary of any
Loan Party.

 

6.1.23                  Senior Debt Status.

 

The
Obligations of each Loan Party under this Agreement, the Guaranty Agreement and
each of the other Loan Documents to which it is a party do rank and will rank
at least pari  passu in priority of payment with all other
Indebtedness of such Loan Party except Indebtedness of such Loan Party to the
extent secured by Permitted Liens.  There
is no Lien upon or with respect to any of the properties or income of any Loan
Party or Subsidiary of any Loan Party which secures indebtedness or other
obligations of any Person except for Permitted Liens.

 

6.1.24                  Anti-Terrorism Laws.

 

6.1.24.4                                            General.

 

None
of the Loan Parties nor any of their Subsidiaries nor to the best knowledge of
the Loan Parties no Affiliate of any Loan Party, is in violation of any
Anti-Terrorism Law or engages in or conspires to engage in any transaction that
evades or avoids, or has the purpose of evading or avoiding, or attempts to
violate, any of the prohibitions set forth in any Anti-Terrorism Law, except
where such violation is not reasonably likely to constitute a Material Adverse
Effect or expose the Agent or any Lender to liability.

 

66

 

6.1.24.5                                            Executive Order No. 13224.

 

None
of the Loan Parties, nor or any Affiliate of any Loan Party, or their
respective agents acting or benefiting in any capacity in connection with the
Loans, Letters of Credit or other transactions hereunder, is any of the
following (each a “Blocked Person”):

 

(i)                                     a Person that is listed in the annex to,
or is otherwise subject to the provisions of, the Executive Order No. 13224;

 

(ii)                                  a Person owned or controlled by, or
acting for or on behalf of, any Person that is listed in the annex to, or is
otherwise subject to the provisions of, the Executive Order No. 13224;

 

(iii)                               a Person or entity with which any Bank is
prohibited from dealing or otherwise engaging in any transaction by any
Anti-Terrorism Law;

 

(iv)                              a Person or entity that commits,
threatens or conspires to commit or supports “terrorism” as defined in the
Executive Order No. 13224;

 

(v)                                 a Person or entity that is named as a “specially
designated national” on the most current list published by the U.S. Treasury
Department Office of Foreign Asset Control at its official website or any
replacement website or other replacement official publication of such list, or

 

(vi)                              a person or entity who is affiliated or associated
with a person or entity listed above.

 

No
Loan Party or to the knowledge of any Loan Party, any of its agents acting in
any capacity in connection with the Loans, Letters of Credit or other
transactions hereunder (i) conducts any business or engages in making or
receiving any contribution of funds, goods or services to or for the benefit of
any Blocked Person, or (ii) deals in, or otherwise engages in any
transaction relating to, any property or interests in property blocked pursuant
to the Executive Order No. 13224.

 

6.1.25                  Solvency.

 

The
Loan Parties, taken as a whole, are Solvent after giving effect to the
transactions contemplated by the Loan Documents and the incurrence of all
Indebtedness and all other Obligations.

 

6.1.26                  Security Interests.

 

The
Liens and security interests granted to the Agent pursuant to the Pledge
Agreement in the Pledged Collateral constitute and will continue to constitute
Prior Security Interests under the Uniform Commercial Code as in effect in each
applicable jurisdiction (the “Uniform Commercial Code”)
or other applicable Law entitled to all the rights, 

 

67

 

benefits and priorities provided by the Uniform Commercial Code or such
Law.  Upon the filing of financing statements
relating to said security interests in each office and in each jurisdiction
where required in order to perfect the security interests described above,
taking possession of any stock certificates or other certificates evidencing
the Pledged Collateral, all such action as is necessary or advisable to
establish such rights of the Agent will have been taken, and there will be upon
execution and delivery of the Pledge Agreement, such filings and such taking of
possession, no necessity for any further action in order to preserve, protect
and continue such rights, except the filing of continuation statements with
respect to such financing statements within six months prior to each five-year
anniversary of the filing of such financing statements.  All filing fees and other expenses in
connection with each such action have been or will be paid by the Borrower.

 

6.1.27                  Status of the Pledged
Collateral.

 

All
the Subsidiary Shares, Partnership Interests or LLC Interests included in the
Pledged Collateral to be pledged pursuant to the Pledge Agreement are or will
be upon issuance validly issued and nonassessable and owned beneficially and of
record by the pledgor free and clear of any Lien or restriction on transfer,
except as otherwise provided by the Pledge Agreement and except as the right of
the Agent to dispose of the Shares, Partnership Interests or LLC Interests may
be limited by the Securities Act of 1933, as amended, and the regulations
promulgated by the Securities and Exchange Commission thereunder and by applicable
state securities laws.

 

6.2                                 Continuation of
Representations.

 

The Loan Parties make the
representations and warranties in this Section 6 on the date hereof and on
the Closing Date and each date thereafter on which a Loan is made or a Letter
of Credit is issued as provided in and subject to Section 7.1
[First Loans and Letters of Credit] and Section 7.2
[Each Additional Loan or Letter of Credit].

 

6.3                                 Updates to Schedules.

 

Should any of the
information or disclosures provided on any of the Schedules attached hereto
become outdated or incorrect in any material respect, the Borrower shall
promptly provide the Agent in writing with such revisions or updates to such
Schedule as may be necessary or appropriate to update or correct same; provided,
however, that no Schedule shall be deemed to have been amended, modified or
superseded by any such correction or update, nor shall any breach of warranty
or representation resulting from the inaccuracy or incompleteness of any such
Schedule be deemed to have been cured thereby, unless and until the Required
Lenders, in their sole and absolute discretion, shall have accepted in writing
such revisions or updates to such Schedule.

 

7.                                       CONDITIONS OF LENDING AND
ISSUANCE OF LETTERS OF CREDIT

 

The obligation of each Lender
to make Loans and of the Agent to issue Letters of Credit hereunder is subject
to the performance by each of the Loan Parties of its Obligations to be 

 

68

 

performed
hereunder at or prior to the making of any such Loans or issuance of such
Letters of Credit and to the satisfaction of the following further conditions:

 

7.1                                 First Loans and Letters of
Credit.

 

On the Closing Date:

 

7.1.1                        Officer’s Certificate.

 

The
representations and warranties of each of the Loan Parties contained in Section 6 [Representations and
Warranties] and in each of the other Loan Documents shall be true and accurate
on and as of the Closing Date with the same effect as though such
representations and warranties had been made on and as of such date (except
representations and warranties which relate solely to an earlier date or time,
which representations and warranties shall be true and correct on and as of the
specific dates or times referred to therein), and each of the Loan Parties
shall have performed and complied with all covenants and conditions hereof and
thereof, no Event of Default or Potential Default shall have occurred and be
continuing or shall exist; and there shall be delivered to the Agent for the
benefit of each Lender a certificate of each of the Loan Parties, dated the
Closing Date and signed by the Chief Executive Officer, President, Chief
Financial Officer or Senior Vice President of each of the Loan Parties, to each
such effect.

 

7.1.2                        Secretary’s Certificate.

 

There
shall be delivered to the Agent for the benefit of each Lender a certificate
dated the Closing Date and signed by the Secretary or an Assistant Secretary of
each of the Loan Parties, certifying as appropriate as to:

 

(i)                                     all action taken by each Loan Party in
connection with this Agreement and the other Loan Documents;

 

(ii)                                  the names of the officer or officers
authorized to sign this Agreement and the other Loan Documents and the true
signatures of such officer or officers and specifying the Authorized Officers
permitted to act on behalf of each Loan Party for purposes of this Agreement
and the true signatures of such officers, on which the Agent and each Bank may
conclusively rely; and

 

(iii)                               copies of its organizational documents,
including its certificate of incorporation, bylaws, certificate of limited
partnership, partnership agreement, certificate of formation, and limited
liability company agreement as in effect on the Closing Date certified (on a
date no more than thirty (30) days prior to the Closing Date) by the
appropriate state official where such documents are filed in a state office
together with certificates from the appropriate state officials as to the
continued existence and good standing of each Loan Party in each state where
organized, where significant assets are located or where significant business
is being conducted.

 

69

 

7.1.3                        Delivery of Loan
Documents.

 

The
Guaranty Agreement, this Agreement, the Pledge Agreement, the Subsidiary Pledge
Agreement and the Notes shall have been duly executed and delivered to the
Agent for the benefit of the Lenders.

 

7.1.4                        Opinion of Counsel.

 

There
shall be delivered to the Agent for the benefit of each Lender a written
opinion of Drinker Biddle & Reath LLP, counsel for the Loan Parties
(who may rely on the opinions of such other counsel as may be acceptable to the
Agent), dated the Closing Date and in form and substance satisfactory to the
Agent and its counsel:

 

(i)                                     as to the matters set forth in Exhibit 7.1.4; and

 

(ii)                                  as to such other matters incident to the
transactions contemplated herein as the Agent may reasonably request.

 

7.1.5                        Legal Details.

 

All
legal details and proceedings in connection with the transactions contemplated
by this Agreement and the other Loan Documents shall be in form and substance
satisfactory to the Agent, and the Agent shall have received all such other
counterpart originals or certified or other copies of such documents and
proceedings in connection with such transactions, in form and substance
satisfactory to the Agent, as the Agent may reasonably request.

 

7.1.6                        Payment of Fees.

 

The
Borrower shall have paid or caused to be paid to the Agent for itself and for
the account of the Lenders to the extent not previously paid the fees accrued
through the Closing Date and the costs and expenses for which the Agent and the
Lenders are entitled to be reimbursed.

 

7.1.7                        Consents.

 

All
material consents required to effectuate the transactions contemplated hereby
shall have been obtained.

 

7.1.8                        Officer’s Certificate
Regarding MACs; Solvency.

 

Since December 31,
2008,  no Material Adverse Change shall have
occurred and no Loan Party shall be a party to any material litigation not
otherwise disclosed in the Historical Statements. After giving effect to the
consummation of the transactions under the Loan Documents and the incurrence of
all Indebtedness and all other Obligations, each Borrower and each other Loan
Party, respectively,  is
Solvent.   There shall have been
delivered to the Agent for the benefit of each Lender a certificate dated the
Closing Date and signed by the Chief 

 

70

 

Financial Officer of the Borrower and the President or Senior Vice
President of each Loan Party as to each matter which is the subject of this Section 7.1.8.

 

7.1.9                        No Violation of Laws.

 

The
making of the Loans and the issuance of the Letters of Credit shall not
contravene any Law applicable to any Loan Party, the Agent or any of the
Lenders.

 

7.1.10                  No Actions or Proceedings.

 

No
action, proceeding, investigation, regulation or legislation shall have been
instituted, threatened or proposed before any court, governmental agency or
legislative body to enjoin, restrain or prohibit, or to obtain damages in
respect of, this Agreement, the other Loan Documents  or the consummation of the transactions
contemplated hereby or thereby or which, in the Agent’s sole discretion, would
make it inadvisable to consummate the transactions contemplated by this
Agreement or any of the other Loan Documents.

 

7.1.11                  Compliance Certificate.

 

A duly
completed Compliance Certificate as of the last day of the fiscal quarter of
the Borrower most recently ended prior to the Closing Date, signed by an
Authorized Officer of the Borrower.

 

7.1.12                  Lien Searches.

 

The
Agent shall have received searches under the Uniform Commercial Code, lien, tax
lien, and judgment searches against each Loan Party and each Material Domestic
Subsidiary of each Loan Party, in each case as reasonably required by the
Agent, in the jurisdiction of each such Person’s formation and, to the extent
required by the Agent, in each other jurisdiction where each such Person
conducts business or owns or operates material assets and the results of such
searches shall be satisfactory in form, scope and substance to the Agent.

 

7.1.13                  Filing Receipts.

 

The
Agent shall have received copies of all filing receipts and acknowledgments
issued by any governmental authority to evidence any recordation or filing
necessary to perfect the Lien of the Agent on the Pledged Collateral or other
satisfactory evidence of such recordation and filing.

 

7.1.14                  Insurance.

 

The
Agent shall have received evidence that the Borrower has adequate insurance
required to be maintained by the Agreement, in full force and effect, in
amounts, from insurers and with terms acceptable to the Agent in its reasonable
discretion.

 

71

 

7.1.15                  Existing Agreement.

 

The
Agent shall have received evidence that the Credit Agreement dated as of June 30,
2004, by and among the Borrower, the guarantors thereunder, the Agent and the
lender parties thereto, has been terminated, and all obligations thereunder
have been paid in full and satisfied, and all Liens securing such obligations
have been assigned to the Agent hereunder.

 

7.1.16                  Other Conditions.

 

The
Loan Parties shall have satisfied such other conditions as the Agent may
reasonably request.

 

7.2                                 Each Additional Loan or
Letter of Credit.

 

At the time of making any
Loans or issuing any Letters of Credit other than Loans made or Letters of
Credit issued on the Closing Date and after giving effect to the proposed
extensions of credit:  the
representations and warranties of the Loan Parties contained in Section 6 and in the other
Loan Documents shall be true on and as of the date of such additional Loan or
Letter of Credit with the same effect as though such representations and
warranties had been made on and as of such date (except representations and
warranties which expressly relate solely to an earlier date or time, which
representations and warranties shall be true and correct on and as of the
specific dates or times referred to therein) and the Loan Parties shall have
performed and complied with all covenants and conditions hereof; no Event of
Default or Potential Default shall have occurred and be continuing or shall
exist; the making of the Loans or issuance of such Letter of Credit shall not
contravene any Law applicable to any Loan Party or Subsidiary of any Loan Party
or any of the Banks; and the Borrower shall have delivered to the Agent a duly
executed and completed Loan Request or application for a Letter of Credit as
the case may be.

 

8.                                       COVENANTS

 

8.1                                 Affirmative Covenants.

 

The Loan Parties, jointly
and severally, covenant and agree that until payment in full of the Loans,
Reimbursement Obligations and Letter of Credit Borrowings, and interest thereon,
expiration or termination of all Letters of Credit, satisfaction of all of the
Loan Parties’ other Obligations under the Loan Documents and termination of the
Commitments, the Loan Parties shall comply at all times with the following
affirmative covenants:

 

8.1.1                        Preservation of Existence,
Etc.

 

Each
Loan Party shall, and shall cause each of its Subsidiaries to, maintain its
legal existence as a corporation, limited partnership or limited liability
company and its license or qualification and good standing in each jurisdiction
in which its ownership or lease of property or the nature of its business makes
such license or qualification necessary, except as otherwise expressly
permitted in Section 8.2.6
[Liquidations, Mergers, Etc.].

 

72

 

8.1.2                        Payment of Liabilities,
Including Taxes, Etc.

 

Each
Loan Party shall, and shall cause each of its Subsidiaries to, duly pay and
discharge all liabilities to which it is subject or which are asserted against
it, promptly as and when the same shall become due and payable, including all
taxes,  assessments and governmental charges
upon it or any of its properties, assets, income or profits, prior to the date
on which penalties attach thereto, except to the extent that such liabilities,
including taxes, assessments or charges, are being contested in good faith and
by appropriate and lawful proceedings diligently conducted and for which such
reserve or other appropriate provisions, if any, as shall be required by GAAP
shall have been made, but only to the extent that failure to discharge any such
liabilities would not be reasonably expected to result in a Material Adverse
Effect.

 

8.1.3                        Maintenance of Insurance.

 

Each
Loan Party shall, and shall cause each of its Subsidiaries to, insure its
properties and assets against loss or damage by fire and such other insurable
hazards as such assets are commonly insured (including fire, extended coverage,
property damage, workers’ compensation, public liability and business
interruption insurance) and against other risks (including errors and
omissions) in such amounts as similar properties and assets are insured by
prudent companies in similar circumstances carrying on similar businesses, and
with reputable and financially sound insurers, including self-insurance to the
extent customary.

 

8.1.4                        Maintenance of Properties
and Leases.

 

Each
Loan Party shall, and shall cause each of its Subsidiaries to, maintain in good
repair, working order and condition (ordinary wear and tear excepted) in accordance
with the general practice of other businesses of similar character and size,
all of those properties useful or necessary to its business, and from time to
time, such Loan Party will make or cause to be made all appropriate repairs,
renewals or replacements thereof.

 

8.1.5                        Maintenance of Patents,
Trademarks, Etc.

 

Each
Loan Party shall, and shall cause each of its Subsidiaries to, maintain in full
force and effect all patents, trademarks, service marks, trade names,
copyrights, licenses, franchises, permits and other authorizations necessary
for the ownership and operation of its properties and business if the failure
so to maintain the same would reasonably be expected to constitute a Material
Adverse Effect.

 

8.1.6                        Visitation Rights.

 

Upon
reasonable prior notice to the Borrower and the Agent and during normal
business hours and in a manner that will not interfere with its business
operations, each Loan Party shall, and shall cause each of its Subsidiaries to,
permit any of the officers or authorized employees or representatives of the
Agent or any of the Lenders to visit and inspect any of its properties and to
examine and make excerpts from its books and records and discuss its business
affairs, finances and accounts with its officers, all in such detail and at
such times and as 

 

73

 

often as any of the Lenders may reasonably request.  In the event any Lender desires to conduct an
audit of any Loan Party, such Lender shall make a reasonable effort to conduct
such audit contemporaneously with any audit to be performed by the Agent.

 

8.1.7                        Keeping of Records and
Books of Account.

 

The
Borrower shall, and shall cause each Subsidiary of the Borrower to, maintain
and keep proper books of record and account which enable the Borrower and its
Subsidiaries to issue financial statements in accordance with GAAP and as
otherwise required by applicable Laws of any Official Body having jurisdiction
over the Borrower or any Subsidiary of the Borrower, and in which full, true
and correct entries shall be made in all material respects of all its dealings
and business and financial affairs.

 

8.1.8                        Plans and Benefit
Arrangements.

 

The
Borrower shall, and shall cause each other member of the ERISA Group to, comply
with ERISA, the Internal Revenue Code and other applicable Laws applicable to
Plans and Benefit Arrangements except where the failure to do so, alone or in
conjunction with any other failure, would not reasonably be expected to result
in a Material Adverse Effect.  Without
limiting the generality of the foregoing, the Borrower shall cause all of its
Plans and all Plans maintained by any member of the ERISA Group to be funded in
accordance with the minimum funding requirements of ERISA and shall make, and
cause each member of the ERISA Group to make, in a timely manner, all
contributions due to Plans, Benefit Arrangements and Multiemployer Plans,
except where the failure to do so, alone or in conjunction with any other
failure, would not reasonably be expected to result in a Material Adverse
Effect.

 

8.1.9                        Compliance with Laws.

 

Each
Loan Party shall, and shall cause each of its Subsidiaries to, comply with all
applicable Laws, including all Environmental Laws and all Safety Laws, in all
respects, provided that it shall not be deemed to be a violation of this
Section 8.1.9 if any failure
to comply with any Law would not result in fines, penalties, Remedial Actions,
costs, other similar liabilities or injunctive relief which in the aggregate
would not reasonably be expected to constitute a Material Adverse Effect.
Without limiting the generality of the foregoing, each Loan Party shall, and
shall cause each of its Subsidiaries to, obtain, maintain, renew and comply
with all Environmental Permits applicable to their respective operations and
activities, provided that it shall not be deemed to be a violation of this Section 8.1.9 if any failure
to do so would not result in cease and desist orders or fines, penalties or
other similar liabilities or injunctive relief which in the aggregate would not
reasonably be expected to constitute a Material Adverse Effect.

 

8.1.10                  Use of Proceeds.

 

The
Loan Parties will use the Letters of Credit and the proceeds of the Loans only
to retire Indebtedness existing on the Closing Date, for general corporate
purposes of the Borrower and for working capital of the Borrower.  The Loan Parties shall not use the Letters 

 

74

 

of Credit or the proceeds of the Loans for any purposes which
contravenes any applicable Law or any provision hereof.

 

8.1.11                  [Intentionally Omitted]

 

8.1.12                  Tax Shelter Regulations.

 

None
of the Loan Parties intends to treat the Loans and/or Letters of Credit and
related transactions as being a “reportable transaction” (within the meaning of
Treasury Regulation Section 1.6011-4). In the event any of the Loan
Parties determines to take any action inconsistent with such intention, the
Borrower will promptly (i) notify the Agent thereof, and (ii) deliver to the Agent a duly
completed copy of IRS Form 8886 or any successor form.  If the Borrower so notifies the Agent, the
Borrower acknowledges that one or more of the Lenders may treat its Loans
and/or Letters of Credit as part of a transaction that is subject to Treasury
Regulation Section 301.6112-1, and such Lender or Lenders, as applicable,
will maintain the lists and other records required by such Treasury Regulation.

 

8.1.13                  Anti-Terrorism Laws.

 

The
Loan Parties and their respective Affiliates and agents shall not (i) conduct
any business or engage in any transaction or dealing with any Blocked Person,
including the making or receiving any contribution of funds, goods or services
to or for the benefit of any Blocked Person, (ii) deal in, or otherwise
engage in any transaction relating to, any property or interests in property
blocked pursuant to the Executive Order No. 13224; or (iii) engage in
or conspire to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions
set forth in the Executive Order No. 13224, the USA Patriot Act or any
other Anti-Terrorism Law, except where the failure to do so is not reasonably
likely to constitute a Material Adverse Effect or expose the Agent or any
Lender to liability.  The Borrower shall
deliver to Lenders any certification or other evidence reasonably requested
from time to time by any Lender in its sole discretion, confirming Borrower’s
compliance with this Section 8.1.13.

 

8.1.14                  Further Assurances.

 

Each
Loan Party shall, from time to time, at its expense, faithfully preserve and
protect the Agent’s Lien on and Prior Security Interest in the Pledged
Collateral as a continuing first priority perfected Liens and shall do such
other acts and things as the Agent in its sole discretion may deem necessary or
advisable from time to time in order to preserve, perfect and protect the Liens
granted under the Loan Documents and to exercise and enforce its rights and
remedies thereunder with respect to the Pledged Collateral.

 

8.2                                 Negative Covenants.

 

The Loan Parties, jointly
and severally, covenant and agree that until payment in full of the Loans,
Reimbursement Obligations and Letter of Credit Borrowings and interest thereon,
expiration or termination of all Letters of Credit, satisfaction of all of the
Loan Parties’ 

 

75

 

other Obligations
hereunder and termination of the Commitments, the Loan Parties shall comply
with the following negative covenants:

 

8.2.1                        Indebtedness.

 

Each of
the Loan Parties shall not, and shall not permit any of its Subsidiaries to, at
any time create, incur, assume or suffer to exist any Indebtedness, except:

 

(i)                                     Indebtedness under the Loan Documents;

 

(ii)                                  Existing Indebtedness as set forth on Schedule 8.2.1 (including any
extensions, renewals, refinancings or replacements thereof, provided
there is no increase in the amount thereof or other significant change in the
terms thereof unless otherwise specified on Schedule
8.2.1);

 

(iii)                               Indebtedness secured by Purchase Money
Security Interests or Indebtedness in respect of Capital Leases, so long as the
Indebtedness permitted by this clause (iii) does not exceed in the
aggregate at any time outstanding $50,000,000.00;

 

(iv)                              Indebtedness of a Loan Party or a Subsidiary
of a Loan Party to any Loan Party or to any Subsidiary of a Loan Party;

 

(v)                                 Any Lender-Provided Hedge or other Hedge
approved by the Agent;

 

(vi)                              Other unsecured Indebtedness so long as (i) after
giving effect thereto the Loan Parties are in compliance with Section 8.2.15 [Maximum
Leverage Ratio] (with, for purposes of determining such pro-forma compliance
with the Leverage Ratio: (a) Consolidated EBITDA determined as of the
fiscal quarter most recently ended for which financial statements in accordance
with Section 8.3.1 [Quarterly
Financial Statements] or Section 8.3.2
[Annual Financial Statements], as the case may be, and the related compliance
certificate in accordance with Section 8.3.3
[Certificate of the Borrower] have been delivered to the Agent, and (b) Total
Debt determined as of the date of incurrence or issuance of the Indebtedness
proposed to be incurred after giving effect thereto), (ii) the covenants
and events of default included in the agreements, instruments and other
documents evidencing such Indebtedness shall be no more restrictive than the
terms of the Credit Agreement, and (iii) no portion of the principal
amount thereof shall amortize or otherwise be payable, repurchased, redeemed or
defeased prior to the date which is one hundred (100) days after the Expiration
Date;

 

(vii)                           Indebtedness of the Borrower or any of
its Subsidiaries arising from the honoring by a financial institution of a
check, draft or similar instrument drawn against insufficient funds in the
ordinary course of business;

 

(viii)                        Indebtedness secured by Liens permitted
by clause (x) of the definition of Permitted Liens, so long as the
aggregate amount of such Indebtedness of the Borrower and its Subsidiaries
outstanding at any time does not exceed twenty percent (20%) of Consolidated
Net Worth;

 

76

 

(ix)                                Indebtedness in respect of Cash Pooling
Obligations; and

 

(x)                                   any Guaranty permitted by Section 8.2.3 [Guaranties].

 

8.2.2                        Liens.

 

Each
of the Loan Parties shall not, and shall not permit any of its Subsidiaries to,
at any time create, incur, assume or suffer to exist any Lien on any of its
property or assets, tangible or intangible, now owned or hereafter acquired, or
agree or become liable to do so,  except Permitted
Liens.

 

8.2.3                        Guaranties.

 

Each
of the Loan Parties shall not, and shall not permit any of its Subsidiaries to,
at any time, directly or indirectly, become or be liable in respect of any
Guaranty, or assume, guarantee, become surety for, endorse or otherwise agree,
become or remain directly or contingently liable upon or with respect to any
obligation or liability of any other Person, except for (i) Guaranties of
Indebtedness of the Loan Parties permitted hereunder, (ii) any Guaranty
issued in connection with or related to the business of the Loan Parties and
their Subsidiaries, providing for indemnification or holding harmless another
Person, (iii) any Guaranty issued in connection with or related to the
business of the Loan Parties and their Subsidiaries, to assure the payment or
performance of ordinary course obligations of any Loan Party or any Subsidiary
of any Loan Party, or (iv) any Guaranty in the ordinary course of business
of the Cash Pooling Obligations.

 

8.2.4                        Loans and Investments.

 

Each
of the Loan Parties shall not, and shall not permit any of its Subsidiaries to,
at any time make or suffer to remain outstanding any loan or advance to, or
purchase, acquire or own any stock, bonds, notes or securities of, or any
partnership interest (whether general or limited) or limited liability company
interest in, or any other investment or interest in,  or
make any capital contribution to, any other Person, or agree, become or remain
liable to do any of the foregoing, except:

 

(i)                                     trade credit extended on usual and
customary terms in the ordinary course of business;

 

(ii)                                  advances to employees to meet expenses
incurred by such employees in the ordinary course of business;

 

(iii)                               Permitted Investments;

 

(iv)                              loans, advances and investments in other
Loan Parties or in Subsidiaries;

 

(v)                                 Investments by the Loan Parties and their
Subsidiaries in any Person (other than a Loan Party or any Subsidiary) so long
as (a) the Person in which the 

 

77

 

Investment is made is
engaged in a line of business permitted by Section 8.2.10
[Continuation of or Change in Business], and (b) after giving effect to
each Investment in any Person, no Potential Default or Event of Default shall
exist or be continuing;

 

(vi)                              so long as after giving effect thereto no
Potential Default or Event of Default shall exist or be continuing, any
transaction, event, agreement or liability to perform described in the first
paragraph of this Section 8.2.4
(i.e. such first paragraph being the paragraph immediately before item (i) of
this Section 8.2.4) that directly involves any Benefit Plans;

 

(vii)                           any acquisition constituting a Permitted
Acquisition which is consummated in accordance with Section 8.2.6
[Liquidations, Mergers, Consolidations, Acquisitions];

 

(viii)                        those Investments set forth on
Schedule 8.2.4;

 

(ix)                                any consideration received in the form of
property, equity interests, securities, notes or otherwise in connection with
any disposition of assets permitted by Section 8.2.7
[Dispositions of Assets or Subsidiaries]; and

 

(x)                                   any repurchase by the Borrower or any
Subsidiary of the Borrower of capital stock which has been issued by such
repurchaser thereof so long as after giving effect thereto no Potential Default
or Event of Default shall exist or be continuing.

 

8.2.5                        [Intentionally Omitted].

 

8.2.6                        Liquidations, Mergers,
Consolidations, Acquisitions.

 

Each
of the Loan Parties shall not, and shall not permit any of its Subsidiaries to,
dissolve, liquidate or wind-up its affairs, or become a party to any merger or
consolidation, or acquire by purchase, lease or otherwise all or substantially
all of the assets or capital stock of any other Person, provided that

 

(i)                                     any Loan Party may consolidate or merge
into another Loan Party, provided, however, in the case of any merger or
consolidation involving the Borrower, the Borrower shall be the survivor
thereof;

 

(ii)                                  any Domestic Subsidiary of the Borrower
may consolidate or merge into another Domestic Subsidiary of the Borrower and
any Foreign Subsidiary of the Borrower may consolidate or merge into the
Borrower or any other Subsidiary of the Borrower, so long as in the case of any
consolidation or merger involving any Loan Party, such Loan Party shall be the
survivor thereof;

 

(iii)                               any Subsidiary which is not a Material
Subsidiary may dissolve, liquidate or wind-up its affairs; and

 

78

 

(iv)                              any Loan Party or any Subsidiary of any
Loan Party may acquire, whether by purchase or by merger, (a) all of the
ownership interests of another Person or (b) substantially all of assets
of another Person or of a business or division of another Person (each a “Permitted Acquisition”), provided
that each of the following requirements is met:

 

(A)                              if the Loan Parties are acquiring the
ownership interests in such Person, such Person, if a Material Domestic
Subsidiary, shall execute a Guarantor Joinder and join this Agreement as a
Guarantor pursuant to Section 11.18
[Joinder of Guarantors] on or before the date of such Permitted Acquisition and
if the Loan Parties are acquiring the ownership interests of a Material First
Tier Foreign Subsidiary, then 65% of such equity interests shall be pledged to
the Agent for the benefit of the Lenders on a first priority perfected basis pursuant
to a Pledge Agreement on the date of such Permitted Acquisition;

 

(B)                                the Loan Parties, such Person and its
owners, as applicable, shall comply with Section 11.18
[Joinder of Guarantors] on or before the date of such Permitted Acquisition;

 

(C)                                the board of directors or other
equivalent governing body of such Person shall have approved such Permitted
Acquisition and, if the Loan Parties shall use any portion of the Loans to fund
such Permitted Acquisition, the Loan Parties also shall have delivered to the
Agent written evidence of the approval of the board of directors (or equivalent
body) of such Person for such Permitted Acquisition;

 

(D)                               the business acquired, or the business
conducted by the Person whose ownership interests are being acquired, as
applicable, shall be permitted by Section 8.2.10
[Continuation of or Change in Business];

 

(E)                                 no Potential Default or Event of Default
shall exist immediately prior to and after giving effect to such Permitted
Acquisition;

 

(F)                                 the Borrower shall demonstrate that it
shall be in compliance with the covenants contained in Section 8.2.15
[Maximum Leverage Ratio] and Section 8.2.16
[Minimum Interest Coverage Ratio] after giving effect to such Permitted
Acquisition (including in such computation Indebtedness or other liabilities
assumed or incurred in connection with such Permitted Acquisition, combining
the stockholders equity (or similar equity) of the Person to be acquired with
Consolidated Net Worth, but excluding income earned or expenses incurred by the
Person, business or assets to be acquired prior to the date of such Permitted
Acquisition), by delivering on or before the date of such Permitted Acquisition
a certificate in the form of Exhibit 8.2.6
evidencing such compliance; and

 

(G)                                if requested by the Agent, the Loan
Parties shall deliver to the Agent copies of any material agreements entered
into or proposed to be entered into by such Loan Parties in connection with
such Permitted Acquisition, together with such other information about such
Person or its assets as any Loan Party may reasonably require.

 

79

 

8.2.7                        Dispositions of Assets or Subsidiaries.

 

Each of the Loan Parties
shall not, and shall not permit any of its Subsidiaries to, sell, convey,
assign, lease, abandon or otherwise transfer or dispose of, voluntarily or
involuntarily, any of its properties or assets, tangible or intangible
(including sale, assignment, discount or other disposition of accounts,
contract rights, chattel paper, equipment or general intangibles with or
without recourse or of capital stock, shares of beneficial interest, partnership
interests or limited liability company interests of a Subsidiary of such Loan
Party), except:

 

(i)            transactions involving the sale of
inventory in the ordinary course of business;

 

(ii)           any sale, transfer or lease of assets in
the ordinary course of business which are obsolete or no longer necessary or
required in the conduct of such Loan Party’s or such Subsidiary’s business;

 

(iii)          any sale, transfer or lease of assets by
any wholly owned Subsidiary of a Loan Party to another Loan Party;

 

(iv)          any sale, transfer or lease of assets by
any Loan Party (other than the Borrower) to any other Loan Party;

 

(v)           any sale, transfer or lease of assets
constituting an Investment permitted under Section 8.2.4(v);

 

(vi)          any sale, transfer or lease of assets in
the ordinary course of business which are replaced by substitute assets
acquired or leased within the ordinary course of business;

 

(vii)         any sale, transfer or lease of assets,
other than those specifically excepted pursuant to clauses (i) through (vi) above,
provided that (a) at the time of any disposition, no Event of Default
shall exist or shall result from such disposition, and (b) the aggregate
net book value of all assets so sold by the Loan Parties and their Subsidiaries
shall not exceed in any fiscal year 25% or the Consolidated Net Worth of the
Loan Parties and their Subsidiaries;

 

(viii)        any sale, transfer or lease of any
Investment set forth on Schedule 8.2.4;
or

 

(ix)           any sale, transfer or lease of assets,
other than those specifically excepted pursuant to clauses (i) through (viii) above,
which is approved by the Required Lenders.

 

80

 

8.2.8                        [Intentionally Omitted].

 

8.2.9                        Subsidiaries, Partnerships and Joint
Ventures.

 

Each of the Loan Parties
shall not, and shall not permit any of its Subsidiaries to, own or create
directly or indirectly any Subsidiary other than (i) any Material Domestic
Subsidiary which has joined this Agreement as a Guarantor on the Closing Date; (ii) any  Material Domestic Subsidiary formed after the
Closing Date which joins this Agreement as a Guarantor pursuant to Section 11.18 [Joinder of
Guarantors], (iii) any Material First Tier Foreign Subsidiary existing on
the Closing Date so long as 65% of the equity interests of such Material First
Tier Foreign Subsidiary have been pledged to the Agent for the benefit of the
Agent and the Lenders on a first priority perfected basis, (iv) any
Material First Tier Foreign Subsidiary formed or acquired after the Closing
Date so long as 65% of the equity interests of such Material First Tier Foreign
Subsidiary have been pledged to the Agent for the benefit of the Agent and the
Lenders on a first priority perfected basis and otherwise in accordance with
the requirements of Section 11.18
[Joinder of Guarantors], and (v) any other Subsidiary which is not the
subject of the immediately preceding clauses (i) through (iv) of this
Section 8.2.9.  Each of the Loan Parties and their
Subsidiaries shall not become or agree to (a) become a general or limited
partner in any general or limited partnership, except that the Loan Parties or
their Subsidiaries may be general or limited partners in other Loan Parties and
in Subsidiaries of other Loan Parties or in any Person in which an Investment
is made as permitted by Sections 8.2.4(v),
(vi), (vii), (viii) or (ix), (b) become
a member or manager of, or hold a limited liability company interest in, a
limited liability company, except that the Loan Parties or their Subsidiaries
may be members or managers of, or hold limited liability company interests in,
other Loan Parties and in Subsidiaries of other Loan Parties or in any Person
in which an Investment is made as permitted by Sections 8.2.4(v),
(vi), (vii), (viii) or (ix), or (c) become a joint
venturer or hold a joint venture interest in any joint venture, except that the
Loan Parties or their Subsidiaries may hold a joint venture interest in any
Person in which an Investment is made as permitted by Sections
8.2.4(v), (vi), (vii), (viii) or (ix).

 

8.2.10                  Continuation of or Change in Business.

 

Each of the Loan Parties
shall not, and shall not permit any of its Subsidiaries to, engage in any
business other than: (i) the businesses in which the Borrower (whether
directly or through one or more of its Subsidiaries) engages in on the Closing
Date, (ii) similar or related businesses (including, without limitation,
similar or related businesses that serve the industries which purchase or use
goods manufactured or processed or services rendered by, any business in which
the Borrower is then permitted to engage (whether directly or through one or
more of its Subsidiaries), pursuant to this Section 8.2.10,
or (iii) businesses incidental to the foregoing.

 

8.2.11                  Plans and Benefit Arrangements.

 

Each of the Loan Parties
shall not, and shall not permit any of its Subsidiaries to, engage in a
Prohibited Transaction with any Plan, Benefit Arrangement or Multiemployer Plan
which, alone or in conjunction with any other circumstances or set of 

 

81

 

circumstances, would result in liability under ERISA
or otherwise violate ERISA, except where any such transaction, liability or
violation, alone or in conjunction with any other circumstances or set of
circumstances, would not reasonably be expected to result in a Material Adverse
Effect.

 

8.2.12                  Fiscal Year.

 

The Borrower shall not,
and shall not permit any Subsidiary of the Borrower to, change its fiscal year
from the twelve-month period beginning January 1 and ending December 31.

 

8.2.13                  Changes in Organizational Documents.

 

The Borrower shall not
amend in any respect its certificate of incorporation (including any provisions
or resolutions relating to capital stock), by-laws, or other organizational
documents without obtaining the prior written consent of the Required Lenders
in the event any such amendment would be adverse in any material respect to the
Lenders.

 

8.2.14                  [Intentionally Omitted]

 

8.2.15                  Maximum Leverage Ratio.

 

The Loan Parties shall
not at any time permit the Leverage Ratio calculated as of the end of each
fiscal quarter to exceed 2.50 to 1.00.

 

8.2.16                  Minimum Interest Coverage Ratio.

 

The Loan Parties shall
not permit the Interest Coverage Ratio calculated as of the end of each fiscal
quarter to be less than 3.00 to 1.00.

 

8.3          Reporting Requirements.

 

The Loan Parties, jointly and severally, covenant and agree that until
payment in full of the Loans, Reimbursement Obligations and Letter of Credit
Borrowings and interest thereon, expiration or termination of all Letters of
Credit, satisfaction of all of the Loan Parties’ other Obligations hereunder
and under the other Loan Documents and termination of the Commitments, the Loan
Parties will furnish or cause to be furnished to the Agent and each of the
Lenders:

 

8.3.1                        Quarterly Financial Statements.

 

As soon as available and
in any event within forty-five (45) calendar days after the end of each of the
first three fiscal quarters in each fiscal year, financial statements of the
Borrower, consisting of a consolidated balance sheet as of the end of such
fiscal quarter and related consolidated statements of income, retained
earnings, and cash flows for the fiscal quarter then ended and the fiscal year
through that date, all in reasonable detail and certified (subject to normal year-end
audit adjustments) by the Chief Executive Officer, President or Chief Financial
Officer of the Borrower as having been prepared in accordance with GAAP, 

 

82

 

consistently
applied, and setting forth in comparative form the respective financial
statements for the corresponding date and period in the previous fiscal
year.  The Loan Parties will be deemed to
have complied with the delivery requirements of this Section 8.3.1
if within forty-five (45) days after the end of their fiscal quarter, the
Borrower delivers to the Agent and each of the Lenders a copy of its Form 10-Q
as filed with the SEC and the financial statements contained therein meets the
requirements described in this Section.

 

8.3.2                        Annual Financial Statements.

 

As soon as available and
in any event within ninety (90) days after the end of each fiscal year of the
Borrower, financial statements of the Borrower consisting of a consolidated
balance sheet as of the end of such fiscal year, and related consolidated
statements of income, retained earnings and cash flows for the fiscal year then
ended, all in reasonable detail and setting forth in comparative form the
financial statements as of the end of and for the preceding fiscal year, and
certified by independent certified public accountants of nationally or
regionally recognized standing reasonably satisfactory to the Agent.  The certificate or report of accountants
shall be free of qualifications (other than any consistency qualification that
may result from a change in the method used to prepare the financial statements
as to which such accountants concur) and shall not indicate the occurrence or
existence of any event, condition or contingency which would materially impair
the prospect of payment or performance of any covenant, agreement or duty of
any Loan Party under any of the Loan Documents. 
The Loan Parties will be deemed to have complied with the delivery
requirements of this Section 8.3.2
if within ninety (90) days after the end of their fiscal year, the Borrower
delivers to the Agent and each of the Lenders a copy of its Annual Report and Form 10-K
as filed with the SEC and the financial statements and certification of public
accountants contained therein meets the requirements described in this Section.

 

8.3.3                        Certificate of the Borrower.

 

Concurrently with the
financial statements of the Borrower furnished to the Agent and to the Banks
pursuant to Section 8.3.1 [Quarterly
Financial Statements] and Section 8.3.2
[Annual Financial Statements], a certificate (each a “Compliance
Certificate”) of the Borrower signed by the Chief Executive
Officer, President or Chief Financial Officer of the Borrower, in the form of Exhibit 8.3.3, to the effect
that (i) except as described pursuant to Section 8.3.4
[Notice of Default] the representations and warranties of the Borrower
contained in Section 6
[Representations and Warranties] and in the other Loan Documents are true on
and as of the date of such certificate with the same effect as though such representations
and warranties had been made on and as of such date (except representations and
warranties which expressly relate solely to an earlier date or time) and the
Loan Parties have performed and complied with all covenants and conditions
hereof, (ii) no Event of Default or Potential Default exists and is
continuing on the date of such certificate (iii) containing calculations
in sufficient detail to demonstrate compliance as of the date of such financial
statements with all financial covenants contained in Section 8.2
[Negative Covenants], (iv) listing each First Tier Foreign Subsidiary and
each Domestic Subsidiary formed or acquired during the fiscal quarter or fiscal
year, as the case may be, covered by such Compliance Certificate and also
indicating whether such Subsidiary is a Material Subsidiary, (v) listing
each Person in which an Investment has been 

 

83

 

made during such
fiscal quarter or fiscal year, with respect to which Person, as provided herein
in the definition of Subsidiary, the Loan Parties have elected that such Person
shall not be a Subsidiary, and (vi) setting forth a list of any
dispositions, transfers or sales of any asset or related assets during such
fiscal quarter or fiscal year if the net book value of the assets so disposed,
transferred or sold equals or exceeds 10% of Consolidated Net Worth as of such
quarter end or fiscal year end.

 

8.3.4                        Notice of Default.

 

Promptly after any
officer of any Loan Party has learned of the occurrence of an Event of Default
or Potential Default, a certificate signed by the Chief Executive Officer,
President or Chief Financial Officer of such Loan Party setting forth the
details of such Event of Default or Potential Default and the action which the
such Loan Party proposes to take with respect thereto.

 

8.3.5                        Notice of Litigation.

 

Promptly after the
commencement thereof, notice of all actions, suits, proceedings or
investigations before or by any Official Body or any other Person against any
Loan Party or Subsidiary of any Loan Party, which relate to any of the Pledged
Collateral or which if adversely determined would reasonably be expected to
constitute a Material Adverse Effect.

 

8.3.6                        Agreements Regarding Pledged Collateral.

 

Upon the request of the Agent,
the Loan Parties shall provide to the Agent a list of the shareholder
agreements, partnership agreements, operating agreements or other similar
agreements applicable to the Pledged Collateral, together with a true and
complete copy of each such agreement.

 

8.3.7                        Budgets, Forecasts, Other Reports and
Information.

 

Promptly upon their
becoming available to the Borrower:

 

(i)            the annual budget (including a detailed
budget of revenue and expenses) and any forecasts or projections of the
Borrower, to be supplied prior to commencement of the fiscal year to which any
of the foregoing may be applicable,

 

(ii)           any reports including management letters
submitted to the Borrower by independent accountants in connection with any
annual, interim or special audit,

 

(iii)          any reports, notices or proxy statements
generally distributed by the Borrower to its stockholders on a date no later
than the date supplied to such stockholders,

 

(iv)          regular or periodic reports, including
Forms 10-K, 10-Q and 8-K, registration statements and prospectuses, filed by
the Borrower with the SEC,

 

84

 

(v)           a copy of any order, which is material
and adverse to the Borrower or any Subsidiary of the Borrower, in any
proceeding to which the Borrower or any of its Subsidiaries is a party issued
by any Official Body, and

 

(vi)          such other reports and information as any
of the Lenders may from time to time reasonably request.  The Borrower shall also notify the Lenders
promptly of the enactment or adoption of any Law which may result in a Material
Adverse Effect.

 

8.3.8                        Tax Shelter Provisions.

 

Promptly after any of the
Loan Parties determines that it intends to treat any of the Loans, Letters of
Credit or related transactions as being a “reportable transaction” as provided
in Section 8.1.12 [Tax Shelter
Regulations]

 

(i)            a written notice of such intention to the Agent; and

 

(ii)           a duly completed copy of IRS Form 8886
or any successor form.

 

8.3.9                        Notices Regarding Plans and Benefit
Arrangements.

 

8.3.9.1              Certain Events.

 

Promptly upon becoming
aware of the occurrence thereof, notice (including the nature of the event and,
when known, any action taken or threatened by the Internal Revenue Service or
the PBGC with respect thereto) of:

 

(i)            any
Reportable Event with respect to the Borrower or any other member of the ERISA
Group (regardless of whether the obligation to report said Reportable Event to
the PBGC has been waived),

 

(ii)           any
Prohibited Transaction which could subject the Borrower or any other member of
the ERISA Group to a civil penalty assessed pursuant to Section 502(i) of
ERISA or a tax imposed by Section 4975 of the Internal Revenue Code in
connection with any Plan, any Benefit Arrangement or any trust created
thereunder,

 

(iii)          any
assertion of material withdrawal liability with respect to any Multiemployer
Plan,

 

(iv)          any
partial or complete withdrawal from a Multiemployer Plan by the Borrower or any
other member of the ERISA Group under Title IV of ERISA (or assertion thereof),
where such withdrawal is likely to result in material withdrawal liability,

 

(v)           any
cessation of operations (by the Borrower or any other member of the ERISA
Group) at a facility in the circumstances described in Section 4062(e) of
ERISA,

 

85

 

(vi)          withdrawal
by the Borrower or any other member of the ERISA Group from a Multiple Employer
Plan,

 

(vii)         a
failure by the Borrower or any other member of the ERISA Group to make a
payment to a Plan required to avoid imposition of a Lien under Section 302(f) of
ERISA,

 

(viii)        the adoption of an amendment to a Plan requiring the
provision of security to such Plan pursuant to Section 307 of ERISA, or

 

(ix)           any
change in the actuarial assumptions or funding methods used for any Plan, where
the effect of such change is to materially increase or materially reduce the
unfunded benefit liability or obligation to make periodic contributions.

 

8.3.9.2              Notices of Involuntary Termination and Annual
Reports.

 

Promptly after receipt
thereof, copies of (i) all notices received by the Borrower or any other
member of the ERISA Group of the PBGC’s intent to terminate any Plan
administered or maintained by the Borrower or any member of the ERISA Group, or
to have a trustee appointed to administer any such Plan; and (ii) at the
request of the Agent or any Lender each annual report (IRS Form 5500
series) and all accompanying schedules, the most recent actuarial reports, the
most recent financial information concerning the financial status of each Plan administered
or maintained by the Borrower or any other member of the ERISA Group, and
schedules showing the amounts contributed to each such Plan by or on behalf of
the Borrower or any other member of the ERISA Group in which any of their
personnel participate or from which such personnel may derive a benefit, and
each Schedule B (Actuarial Information) to the annual report filed by the
Borrower or any other member of the ERISA Group with the Internal Revenue
Service with respect to each such Plan.

 

8.3.9.3              Notice of Voluntary Termination.

 

Promptly upon the filing
thereof, copies of any Form 5310, or any successor or equivalent form to Form 5310,
filed with the PBGC in connection with the termination of any Plan.

 

9.             DEFAULT

 

9.1          Events of Default.

 

An Event of Default shall mean the occurrence or existence of any one
or more of the following events or conditions (whatever the reason therefor and
whether voluntary, involuntary or effected by operation of Law):

 

86

 

9.1.1                        Payments Under Loan Documents.

 

The Borrower shall fail
to pay (i) any principal of any Loan (including scheduled installments,
mandatory prepayments or the payment due at maturity), Reimbursement Obligation
or Letter of Credit Borrowing when such principal is due hereunder or (ii) any
interest on any Loan , Reimbursement Obligation or Letter of Credit Borrowing
or any other amount owing hereunder or under the other Loan Documents within
three (3) Business Days after such interest or other amount becomes due in
accordance with the terms hereof or thereof;

 

9.1.2                        Breach of Warranty.

 

Any representation or
warranty made at any time by any of the Loan Parties herein or by any of the
Loan Parties in any other Loan Document, or in any certificate, other
instrument or statement furnished pursuant to the provisions hereof or thereof,
shall prove to have been false or misleading in any material respect as of the
time it was made or furnished;

 

9.1.3                        Breach of Negative Covenants or
Visitation Rights.

 

Any of the Loan Parties
shall default in the observance or performance of any covenant contained in Section 8.1.6 [Visitation
Rights] or Section 8.2 [Negative
Covenants];

 

9.1.4                        Breach of Other Covenants.

 

Any of the Loan Parties
shall default in the observance or performance of any other covenant, condition
or provision hereof or of any other Loan Document and such default shall
continue unremedied for a period of thirty (30) days after any officer of any
Loan Party becomes aware of the occurrence thereof (such grace period to be
applicable only in the event such default can be remedied by corrective action
of the Loan Parties as determined by the Agent in its reasonable discretion);

 

9.1.5                        Defaults in Other Agreements or
Indebtedness.

 

A default or event of default
shall occur at any time under the terms of any other agreement involving
borrowed money or the extension of credit or any other Indebtedness under which
any Loan Party or Material Subsidiary of any Loan Party may be obligated as a
borrower or guarantor in a principal amount in excess of $30,000,000.00 in the
aggregate, and such breach, default or event of default consists of the failure
to pay (beyond any period of grace permitted with respect thereto, whether
waived or not) any indebtedness when due (whether at stated maturity, by
acceleration or otherwise) or if such breach or default permits or causes the
acceleration of any indebtedness (whether or not such right shall have been
waived) or the termination of any commitment to lend;

 

9.1.6                        Final Judgments or Orders.

 

Any final judgments or
orders for the payment of money in excess of $30,000,000.00 in the aggregate
(to the extent not paid or covered by insurance from a reputable 

 

87

 

carrier who has not
previously denied coverage) shall be entered against any Loan Party by a court
having jurisdiction in the premises, which judgment is not discharged, vacated,
bonded or stayed pending appeal within a period of sixty (60) days from the
date of entry;

 

9.1.7                        Loan Document Unenforceable.

 

Any material provision of
the Loan Documents shall cease to be legal, valid and binding agreements
enforceable against the party executing the same or such party’s successors and
assigns (as permitted under the Loan Documents) in accordance with the
respective terms thereof or shall in any way be terminated (except in
accordance with its terms) or become or be declared ineffective or inoperative
or shall in any way be challenged or contested or cease to give or provide the
respective Liens, security interests, rights, titles, interests, remedies,
powers or privileges intended to be created thereby;

 

9.1.8                        Uninsured Losses; Proceedings Against
Assets.

 

Any material portion of
the Loan Parties’ or any of their Material Subsidiaries’ assets are attached,
seized, levied upon or subjected to a writ or distress warrant; or such come
within the possession of any receiver, trustee, custodian or assignee for the
benefit of creditors and the same is not cured within sixty (60) days thereafter;

 

9.1.9                        Notice of Lien or Assessment.

 

A notice of Lien or
assessment in excess of $30,000,000.00 which is not a Permitted Lien is filed
of record with respect to all or any part of any of the Loan Parties’ or any of
their Material Subsidiaries’ assets by the United States, or any department,
agency or instrumentality thereof, or by any state, county, municipal or other
governmental agency, including the PBGC, or any taxes or debts owing at any
time or times hereafter to any one of these becomes payable and the same is not
paid within thirty (30) days after the same becomes payable, except for so long
as the same is being contested in good faith in appropriate proceedings which
have the effect of staying any enforcement action thereon and provided that
such Loan Party has provided adequate bond or established appropriate reserves;

 

9.1.10                  Insolvency.

 

Any Loan Party or any
Material Subsidiary of a Loan Party ceases to be Solvent or admits in writing
its inability to pay its debts as they mature;

 

9.1.11                  Events Relating to Plans and Benefit
Arrangements.

 

Any of the following
occurs:  (i) any Reportable Event,
which the Agent determines in good faith constitutes grounds for the
termination of any Plan by the PBGC or the appointment of a trustee to administer
or liquidate any Plan, shall have occurred and be continuing; (ii) proceedings
shall have been instituted or other action taken to terminate any Plan, or a
termination notice shall have been filed with respect to any Plan; (iii) a
trustee shall be appointed to administer or liquidate any Plan; (iv) the
PBGC shall give notice of its intent to institute proceedings to terminate any
Plan or Plans or to appoint a trustee to administer or 

 

88

 

liquidate any Plan;
and, in the case of the occurrence of (i), (ii), (iii) or (iv) above,
the Required Lenders determine in good faith that the amount of the Borrower’s
liability is likely to exceed 10% of its Consolidated Net Worth; (v) the
Borrower or any member of the ERISA Group shall fail to make any contributions
when due to a Plan or a Multiemployer Plan; (vi) the Borrower or any other
member of the ERISA Group shall make any amendment to a Plan with respect to
which security is required under Section 307 of ERISA; (vii) the
Borrower or any other member of the ERISA Group shall withdraw completely or
partially from a Multiemployer Plan; (viii) the Borrower or any other
member of the ERISA Group shall withdraw (or shall be deemed under Section 4062(e) of
ERISA to withdraw) from a Multiple Employer Plan; or (ix) any applicable
Law is adopted, changed or interpreted by any Official Body with respect to or
otherwise affecting one or more Plans, Multiemployer Plans or Benefit
Arrangements and, with respect to any of the events specified in (v), (vi),
(vii), (viii) or (ix), the Required Lenders determine in good faith that
any such occurrence would be reasonably likely to materially and adversely
affect the total enterprise represented by the Borrower and the other members of
the ERISA Group;

 

9.1.12                  Cessation of Business.

 

Any Loan Party or any
Material Subsidiary of a Loan Party (i) ceases to conduct its business as
contemplated, except as expressly permitted under Section 8.2.6
[Liquidations, Mergers, Etc.] or Section 8.2.7
[Disposition of Assets], or (ii) is enjoined, restrained or in any way
prevented by court order from conducting all or any material part of its
business and such injunction, restraint or other preventive order is not
dismissed within sixty (60) days after the entry thereof, if, in the case of
either clause (i) or clause (ii), such event would likely constitute a
Material Adverse Change, either alone or when combined with any previous events
described in either clause (i) or clause (ii) or both;

 

9.1.13                  Change of Control.

 

Any person or group of
persons (within the meaning of Sections 13(d) or 14(a) of the
Securities Exchange Act of 1934, as amended) shall have acquired beneficial
ownership of (within the meaning of Rule 13d-3 promulgated by the SEC
under said Act) 30% or more of the voting capital stock of the Borrower;

 

9.1.14                  Involuntary Proceedings.

 

A proceeding shall have
been instituted in a court having jurisdiction in the premises seeking a decree
or order for relief in respect of any Loan Party or any Material Subsidiary of
a Loan Party in an involuntary case under any applicable bankruptcy,
insolvency, reorganization or other similar law now or hereafter in effect, or
for the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator,
conservator (or similar official) of any Loan Party or any Material Subsidiary
of a Loan Party for any substantial part of its property, or for the winding-up
or liquidation of its affairs, and such proceeding shall remain undismissed or
unstayed and in effect for a period of sixty (60) consecutive days or such
court shall enter a decree or order granting any of the relief sought in such
proceeding; or

 

89

 

9.1.15                  Voluntary Proceedings.

 

Any Loan Party or any
Material Subsidiary of a Loan Party shall commence a voluntary case under any
applicable bankruptcy, insolvency, reorganization or other similar law now or
hereafter in effect, shall consent to the entry of an order for relief in an
involuntary case under any such law, or shall consent to the appointment or
taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator, conservator (or other similar official) of itself or for any
substantial part of its property or shall make a general assignment for the
benefit of creditors, or shall fail generally to pay its debts as they become
due, or shall take any action in furtherance of any of the foregoing.

 

9.2          Consequences of Event of Default.

 

9.2.1                        Events of Default Other Than Bankruptcy,
Insolvency or Reorganization Proceedings.

 

If an Event of Default
specified under Sections 9.1.1
through 9.1.13  shall occur and be
continuing, the Lenders and the Agent shall be under no further obligation to
make Revolving Credit Loans or issue Letters of Credit, as the case may be, and
the Agent may, and upon the request of the Required Lenders, shall by written
notice to the Borrower, take one or both of the following actions: (i) terminate
the Commitments and thereupon the Commitments shall be terminated and of no
further force and effect, or (ii) declare the unpaid principal amount of
the Revolving Credit Loans then outstanding and all interest accrued thereon,
any unpaid fees and all other Indebtedness of the Borrower to the Lenders
hereunder and thereunder to be forthwith due and payable, and the same shall
thereupon become and be immediately due and payable to the Agent for the
benefit of each Lender without presentment, demand, protest or any other notice
of any kind, all of which are hereby expressly waived, and (ii) require
the Borrower to, and the Borrower shall thereupon, deposit in a
non-interest-bearing account with the Agent, access to which shall be limited
to the Agent only, as cash collateral for its Obligations under the Loan Documents,
an amount equal to the maximum amount currently or at any time thereafter
available to be drawn on all outstanding Letters of Credit, and the Borrower
hereby pledges to the Agent and the Lenders, and grants to the Agent and the
Lenders a security interest in, all such cash as security for such
Obligations.  Upon the curing of all
existing Events of Default to the satisfaction of the Required Lenders, the
Agent shall return such cash collateral to the Borrower; and

 

9.2.2                        Bankruptcy, Insolvency or Reorganization
Proceedings.

 

If an Event of Default
specified under Section 9.1.14
[Involuntary Proceedings] or Section 9.1.15
[Voluntary Proceedings] shall occur, the Commitments shall automatically
terminate and be of no further force and effect, the Lenders shall be under no
further obligations to make Revolving Credit Loans hereunder, PNC Bank shall be
under no further obligation to make Swing Loans hereunder and the unpaid
principal amount of the Loans then outstanding and all interest accrued thereon,
any unpaid fees and all other Indebtedness of the Borrower to the Lenders
hereunder and thereunder shall be immediately due and payable, 

 

90

 

without
presentment, demand, protest or notice of any kind, all of which are hereby
expressly waived; and

 

9.2.3                        Set-off.

 

If an Event of Default
shall occur and be continuing, any Lender to whom any Obligation is owed by any
Loan Party hereunder or under any other Loan Document or any participant of
such Lender which has agreed in writing to be bound by the provisions of Section 10.11 [Equalization of
Banks] and any branch, Subsidiary or Affiliate of such Lender or participant
anywhere in the world shall have the right, in addition to all other rights and
remedies available to it, without notice to such Loan Party, to set-off against
and apply to the then unpaid balance of all the Loans and all other Obligations
of the Borrower and the other Loan Parties hereunder or under any other Loan
Document any debt owing to, and any other funds held in any manner for the
account of, the Borrower or such other Loan Party by such Lender or participant
or by such branch, Subsidiary or Affiliate, including all funds in all deposit
accounts (whether time or demand, general or special, provisionally credited or
finally credited, or otherwise) now or hereafter maintained by the Borrower or
such other Loan Party for its own account (but not including funds held in
custodian or trust accounts) with such Lender or participant or such branch,
Subsidiary or Affiliate.  Such right
shall exist whether or not any Lender or the Agent shall have made any demand
under this Agreement or any other Loan Document, whether or not such debt owing
to or funds held for the account of the Borrower or such other Loan Party is or
are matured or unmatured and regardless of the existence or adequacy of any
Guaranty, any Pledged Collateral or any other security, right or remedy
available to any Lender or the Agent; and

 

9.2.4                        Intentionally Omitted.

 

9.2.5                        Application of Proceeds; Collateral
Sharing.

 

9.2.5.1              Application of Proceeds.

 

From and after the date
on which the Agent has taken any action pursuant to this Section 9.2
and until all Obligations of the Loan Parties have been paid in full, any and
all proceeds received by the Agent from any sale or other disposition of the
Pledged Collateral, or any part thereof, or the exercise of any remedy by the
Agent, shall be applied as follows:

 

(i)            first,
to reimburse the Agent and the Lenders for out-of-pocket costs, expenses and
disbursements, including reasonable attorneys’ and paralegals’ fees and legal
expenses, incurred by the Agent or the Lenders in connection with realizing on
the Pledged Collateral or collection of any Obligations of any of the Loan
Parties under any of the Loan Documents, including advances made by the Agent
or the Lenders for the reasonable maintenance, preservation, protection or
enforcement of, or realization upon, the Pledged Collateral, including advances
for taxes, insurance, repairs and the like and reasonable expenses incurred to
sell or otherwise realize on, or prepare for sale or other realization on, any
of the Pledged Collateral.

 

91

 

(ii)           second,
to the repayment of all Obligations then due and unpaid of the Loan Parties to
the Agent and the Lenders (including without limitation PNC Bank as Swing Loan
Lender) incurred under this Agreement or any of the other Loan Documents or a
Lender-Provided Hedge, whether of principal, interest, fees, expenses or
otherwise, in such manner as the Agent may determine in its discretion; and

 

(iii)          the
balance, if any, as required by Law.

 

9.2.5.2              Collateral Sharing.

 

All Liens granted under
any Loan Document (the “Collateral Documents”)
shall secure ratably and on a pari passu basis (i) the Obligations in
favor of the Agent and the Lenders (including without limitation PNC Bank as
Swing Loan Lender) hereunder, and (ii) the Obligations incurred by any of
the Loan Parties in favor of any Lender which provides a Lender-Provided Hedge
(the “IRH Provider”).  The Agent under the Collateral Documents
shall be deemed to serve as the collateral agent (the “Collateral
Agent”) for itself, the IRH Provider, and the Lenders (including
without limitation PNC Bank as Swing Loan Lender) hereunder, provided that the
Collateral Agent shall comply with the instructions and directions of the Agent
(or the Banks under this Agreement to the extent that this Agreement or any other
Loan Documents empowers the Lenders to direct the Agent), as to all matters
relating to the collateral under the Collateral Documents, including the
maintenance and disposition thereof.  No
IRH Provider (except in its capacity as a Lender hereunder) shall be entitled
or have the power to direct or instruct the Collateral Agent on any such
matters or to control or direct in any manner the maintenance or disposition of
the collateral under the Collateral Documents.

 

9.2.6                        Other Rights and Remedies.

 

In addition to all of the
rights and remedies contained in this Agreement or in any of the other Loan
Documents, the Agent shall have all of the rights and remedies under the
Uniform Commercial Code or other applicable Law, all of which rights and
remedies shall be cumulative and non-exclusive, to the extent permitted by
Law.  The Agent may, and upon the request
of the Required Lenders shall, exercise all post-default rights granted to the
Agent and the Lenders under the Loan Documents or applicable Law.

 

9.2.7                        Notice of Sale.

 

Any notice required to be
given by the Agent or any Lender of a sale, lease, or other disposition of the
Pledged Collateral or any other intended action by the Agent or any Bank, if
given ten (10) days prior to such proposed action, shall constitute
commercially reasonable and fair notice thereof to the Loan Parties.

 

92

 

10.           THE AGENT

 

10.1        Appointment and Authority.

 

Each of the Lenders hereby irrevocably
appoints PNC Bank to act on its behalf as the Agent hereunder and under the
other Loan Documents and authorizes the Agent to take such actions on its
behalf and to exercise such powers as are delegated to the Agent by the terms
hereof or thereof, together with such actions and powers as are reasonably
incidental thereto.  The provisions of
this Section 10 are solely for the
benefit of the Agent and the Lenders, and neither the Borrower nor any other
Loan Party shall have rights as a third party beneficiary of any of such
provisions.

 

10.2        Rights as a Lender.

 

The Person serving as the Agent hereunder
shall have the same rights and powers in its capacity as a Lender as any other
Lender and may exercise the same as though it were not the Agent and the term “Lender”
or “Lenders” shall, unless otherwise expressly indicated or unless the context
otherwise requires, include the Person serving as the Agent hereunder in its
individual capacity.  Such Person and its
Affiliates may accept deposits from, lend money to, act as the financial
advisor or in any other advisory capacity for and generally engage in any kind
of business with the Borrower or any Subsidiary or other Affiliate thereof as
if such Person were not the Agent hereunder and without any duty to account
therefor to the Lenders.

 

10.3        Exculpatory Provisions.

 

The Agent shall not have any duties or
obligations except those expressly set forth herein and in the other Loan
Documents.  Without limiting the
generality of the foregoing, the Agent:

 

(i)            shall not be
subject to any fiduciary or other implied duties, regardless of whether a
Potential Default or Event of Default has occurred and is continuing;

 

(ii)           shall not have any
duty to take any discretionary action or exercise any discretionary powers,
except discretionary rights and powers expressly contemplated hereby or by the
other Loan Documents that the Agent is required to exercise as directed in
writing by the Required Lenders (or such other number or percentage of the
Lenders as shall be expressly provided for herein or in the other Loan
Documents); provided that the Agent shall not be required to take any
action that, in its opinion or the opinion of its counsel, may expose the Agent
to liability or that is contrary to any Loan Document or applicable Law; and

 

(iii)          shall not, except as
expressly set forth herein and in the other Loan Documents, have any duty to
disclose, and shall not be liable for the failure to disclose, any information
relating to the Borrower or any of its Affiliates that is communicated to or
obtained by the Person serving as the Agent or any of its Affiliates in any
capacity.

 

The Agent shall not be liable for any action taken or not taken by it (a) with
the consent or at the request of the Required Lenders (or such other number or
percentage of the 

 

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Lenders as shall be necessary, or as the
Administrative Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Section 11.1
[Modifications, Amendments or Waivers] and Section 9.2
[Consequences of Event of Default]) or (b) in the absence of its own gross
negligence or willful misconduct, as determined in a final, unappealable
judgment of a court of competent jurisdiction. 
The Agent shall be deemed not to have knowledge of any Potential Default
or Event of Default unless and until notice describing such Potential Default
or Event of Default is given to the Agent by the Borrower or a Lender.

 

The Agent shall not be responsible for or have any duty to ascertain or
inquire into (A) any statement, warranty or representation made in or in
connection with this Agreement or any other Loan Document, (B) the
contents of any certificate, report or other document delivered hereunder or
thereunder or in connection herewith or therewith, (C) the performance or
observance of any of the covenants, agreements or other terms or conditions set
forth herein or therein or the occurrence of any Potential Default or Event of
Default, (D) the validity, enforceability, effectiveness or genuineness of
this Agreement, any other Loan Document or any other agreement, instrument or
document or (E) the satisfaction of any condition set forth in Section 7 [Conditions of
Lending and Issuance of Letters of Credit] or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the Agent.

 

10.4        Reliance by Agent.

 

The Agent shall be entitled to rely upon, and
shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing
(including any electronic message, Internet or intranet website posting or
other distribution) believed by it to be genuine and to have been signed, sent
or otherwise authenticated by the proper Person.  The Agent also may rely upon any statement
made to it orally or by telephone and believed by it to have been made by the
proper Person, and shall not incur any liability for relying thereon.  In determining compliance with any condition
hereunder to the making of a Loan, or the issuance of a Letter of Credit, that
by its terms must be fulfilled to the satisfaction of a Lender, the Agent may
presume that such condition is satisfactory to such Lender unless the Agent
shall have received notice to the contrary from such Lender prior to the making
of such Loan.  The Agent may consult with
legal counsel (who may be counsel for the Borrower), independent accountants
and other experts selected by it, and shall not be liable for any action taken
or not taken by it in accordance with the advice of any such counsel,
accountants or experts.

 

10.5        Delegation of Duties.

 

The Agent may perform any and all of its duties and exercise its rights
and powers hereunder or under any other Loan Document by or through any one or
more sub-agents appointed by the Agent. 
The Agent and any such sub-agent may perform any and all of its duties
and exercise its rights and powers by or through their respective Related
Parties.  The exculpatory provisions of
this Section 10.5 shall apply to any
such sub-agent and to the Related Parties of the Agent and any such sub-agent,
and shall apply to their respective activities in connection with the
syndication of the credit facilities provided for herein as well as activities
as Agent.

 

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10.6        Resignation of Agent.

 

The Agent may at any time give notice of its resignation to the
Lenders, and the Borrower.  Upon receipt
of any such notice of resignation, the Required Lenders shall have the right,
with approval from the Borrower (so long as no Event of Default has occurred
and is continuing), to appoint a successor, such approval not to be
unreasonably withheld or delayed.  If no
such successor shall have been so appointed by the Required Lenders and shall
have accepted such appointment within ninety (90) days after the retiring
Agent gives notice of its resignation, then the retiring Agent may on behalf of
the Lenders, appoint a reputable bank or financial institution as a successor
Agent; provided that if the Agent shall notify the Borrower and the Lenders
that no Person has accepted such appointment, then such resignation shall
nonetheless become effective in accordance with such notice and (i) the
retiring Agent shall be discharged from its duties and obligations hereunder
and under the other Loan Documents (except that in the case of any collateral
security held by the Agent on behalf of itself and the Lenders under any of the
Loan Documents, the retiring Agent shall continue to hold such collateral
security until such time as a successor Agent is appointed) and (ii) all
payments, communications and determinations provided to be made by, to or
through the Agent shall instead be made by or to each Lender directly, until
such time as the Required Lenders appoint a successor Agent as provided for
above in this Section 10.6.  Upon the acceptance of a successor’s
appointment as Agent hereunder, such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring
(or retired) Agent, and the retiring Agent shall be discharged from all of its
duties and obligations hereunder or under the other Loan Documents (if not
already discharged therefrom as provided above in this Section).  The fees payable by the Borrower to a
successor Administrative Agent shall be the same as those payable to its
predecessor unless otherwise agreed between the Borrower and such
successor.  After the retiring Agent’s
resignation hereunder and under the other Loan Documents, the provisions of
this Section 10, Section 2.10.8
[Indemnity], Section 5.6.3
[Indemnification by the Borrower], and Section 11.3
[Reimbursement and Indemnification of Lenders by the Borrower; Taxes] shall
continue in effect for the benefit of such retiring Agent, its sub-agents and
their respective Related Parties in respect of any actions taken or omitted to
be taken by any of them while the retiring Agent was acting as Agent.

 

If PNC Bank resigns as Agent under this Section 10.6,
PNC Bank shall also resign as the issuer of Letters of Credit and the Swing
Loan Lender.  Upon the appointment of a
successor Agent hereunder, such successor shall (i) succeed to all of the
rights, powers, privileges and duties of PNC Bank as the retiring and Agent and
PNC Bank shall be discharged from all of its respective duties and obligations
as  the issuer of Letters of Credit and
the Swing Loan Lender and Agent under the Loan Documents, and (ii) issue
letters of credit in substitution for the Letters of Credit issued by PNC Bank,
as the Agent, if any, outstanding at the time of such succession or make other
arrangement satisfactory to PNC Bank to effectively assume the obligations of
PNC Bank with respect to such Letters of Credit.

 

10.7        Non-Reliance on Administrative Agent and Other Lenders.

 

Each Lender acknowledges that it has, independently and without
reliance upon the Agent or any other Lender or any of their Related Parties and
based on such documents and 

 

95

 

information as it has deemed appropriate,
made its own credit analysis and decision to enter into this Agreement.  Each Lender also acknowledges that it will,
independently and without reliance upon the Agent or any other Lender or any of
their Related Parties and based on such documents and information as it shall
from time to time deem appropriate, continue to make its own decisions in
taking or not taking action under or based upon this Agreement, any other Loan
Document or any related agreement or any document furnished hereunder or
thereunder.

 

10.8        Reimbursement and Indemnification of Agent by the Borrower.

 

The Borrower unconditionally agrees to pay or reimburse the Agent and
hold the Agent harmless against (i) liability for the payment of all
reasonable out-of-pocket costs, expenses and disbursements, including reasonable
fees and expenses of counsel (including, without duplication of legal work of
outside counsel, the allocated costs of staff counsel), appraisers and
environmental consultants, incurred by the Agent (a) in connection with
the development, negotiation, preparation, printing, execution, administration,
syndication, interpretation and performance of this Agreement and the other
Loan Documents, (b) relating to any requested amendments, waivers or
consents pursuant to the provisions hereof, (c) in connection with the
enforcement of this Agreement or any other Loan Document or collection of
amounts due hereunder or thereunder or the proof and allowability of any claim
arising under this Agreement or any other Loan Document, whether in bankruptcy
or receivership proceedings or otherwise, (d) in any workout or
restructuring or in connection with the protection, preservation, exercise or
enforcement of any of the terms hereof or of any rights hereunder or under any
other Loan Document or in connection with any foreclosure, collection or
bankruptcy proceedings, and (e) in connection with any Environmental
Complaint threatened or asserted against the Agent or the Lenders in any way
relating to or arising out of this Agreement or any other Loan Documents
(including, without limitation, the protection, preservation, exercise or
enforcement of any of the terms hereof or of any rights hereunder or under any
other Loan Document or in connection with any foreclosure, collection or
bankruptcy proceedings or in any workout or restructuring) and (ii) all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever which
may be imposed on, incurred by or asserted against the Agent, in its capacity
as such, in any way relating to or arising out of (A) this Agreement or
any other Loan Documents or any action taken or omitted by the Agent hereunder
or thereunder and (B) any Environmental Complaint in any way relating to
or arising out of this Agreement or any other Loan Documents or any action
taken or omitted by the Agent hereunder or thereunder, provided that the
Borrower shall not be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements if the same results from the Agent’s bad faith, gross negligence
or willful misconduct, as determined in a final, unappealable judgment of a
court of competent jurisdiction, or if the Borrower was not given notice of the
subject claim and the opportunity to participate in the defense thereof, at its
expense (except that the Borrower shall remain liable to the extent such
failure to give notice does not result in a loss to the Borrower), or if the
same results from a compromise or settlement agreement entered into without the
consent of the Borrower, which shall not be unreasonably withheld.  In addition, the Borrower agrees to reimburse
and pay all reasonable out-of-pocket expenses of the Agent’s regular employees
and agents engaged periodically to perform audits of the Loan Parties’ books,
records and business properties. The 

 

96

 

Borrower shall pay to the Agent the Agent’s
annual charge for electronic distribution services, as and when billed.

 

10.9        Exculpatory Provisions; Limitation of Liability.

 

Neither the Agent nor any of its directors, officers, employees,
agents, attorneys or Affiliates shall (i) be liable to any Lender for any
action taken or omitted to be taken by it or them hereunder, or in connection
herewith including pursuant to any Loan Document, unless caused by its or their
own bad faith, gross negligence or willful misconduct, as determined in a
final, unappealable judgment of a court of competent jurisdiction; (ii) be
responsible in any manner to any of the Lenders for the effectiveness,
enforceability, genuineness, validity or the due execution of this Agreement or
any other Loan Documents or for any recital, representation, warranty,
document, certificate, report or statement herein or made or furnished under or
in connection with this Agreement or any other Loan Documents, or (iii) be
under any obligation to any of the Lenders to ascertain or to inquire as to the
performance or observance of any of the terms, covenants or conditions hereof
or thereof on the part of the Loan Parties, or the financial condition of the
Loan Parties, or the existence or possible existence of any Event of Default or
Potential Default.  No claim may be made
by any of the Loan Parties, any Lender, the Agent or any of their respective
Subsidiaries against the Agent, any Lender or any of their respective
directors, officers, employees, agents, attorneys or Affiliates, or any of
them, for any special, indirect or consequential damages or, to the fullest
extent permitted by Law, for any punitive damages in respect of any claim or
cause of action (whether based on contract, tort, statutory liability, or any
other ground) based on, arising out of or related to any Loan Document or the
transactions contemplated hereby or any act, omission or event occurring in
connection therewith, including the negotiation, documentation, administration
or collection of the Loans, and each of the Loan Parties, (for itself and on
behalf of each of its Subsidiaries), the Agent and each Lender hereby waive,
releases and agree never to sue upon any claim for any such damages, whether
such claim now exists or hereafter arises and whether or not it is now known or
suspected to exist in its favor.  Each
Lender agrees that, except for notices, reports and other documents expressly
required to be furnished to the Lenders by the Agent hereunder or given to the
Agent for the account of or with copies for the Lenders, the Agent and each of
its directors, officers, employees, agents, attorneys or Affiliates shall not
have any duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, property, condition (financial
or otherwise), prospects or creditworthiness of the Loan Parties which may come
into the possession of the Agent or any of its directors, officers, employees,
agents, attorneys or Affiliates.

 

10.10     Reimbursement
and Indemnification of Agent by Lenders.

 

Each Lender agrees to reimburse and indemnify the Agent (to the extent
not reimbursed by the Borrower and without limiting the Obligation of the
Borrower to do so) in proportion to its Ratable Share from and against all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements, including attorneys’ fees and
disbursements (including the allocated reasonable costs of staff counsel), and
costs of appraisers and environmental consultants, of any kind or nature
whatsoever which may be imposed on, incurred by or asserted against the Agent,
in its capacity as such, in any way relating 

 

97

 

to or arising out of this Agreement or any
other Loan Documents or any action taken or omitted by the Agent hereunder or
thereunder, provided that no Lender shall be liable for any portion of
such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements (i) if the same results from the
Agent’s gross negligence or willful misconduct, as determined in a final,
unappealable judgment of a court of competent jurisdiction or (ii) if such
Lender was not given notice of the subject claim and the opportunity to
participate in the defense thereof, at its expense (except that such Lender
shall remain liable to the extent such failure to give notice does not result
in a loss to the Lender), or (iii) if the same results from a compromise
and settlement agreement entered into without the consent of such Lender, which
shall not be unreasonably withheld.  In
addition, each Lender agrees promptly upon demand to reimburse the Agent (to
the extent not reimbursed by the Borrower and without limiting the Obligation
of the Borrower to do so) in proportion to its Ratable Share for all amounts
due and payable by the Borrower to the Agent in connection with the Agent’s
periodic audit of the Loan Parties’ books, records and business properties.

 

10.11     Equalization
of Lenders.

 

The Lenders and the holders of any participations in any Commitments or
Loans or other rights or obligations of a Lender hereunder agree among
themselves that,  with respect to all amounts
received by any Lender or any such holder for application on any Obligation
hereunder or under any such participation, whether received by voluntary
payment, by realization upon security, by the exercise of the right of set-off
or banker’s lien, by counterclaim or by any other non-pro rata source,
equitable adjustment will be made in the manner stated in the following
sentence so that, in effect, all such excess amounts will be shared ratably
among the Lenders and such holders in proportion to their interests in payments
on the Loans, except as otherwise provided in Section 4.4.3
[Agent’s and Lender’s Rights], Section 5.4.2
[Replacement of a Lender] or Section 5.5
[Additional Compensation in Certain Circumstances].  The Lenders or any such holder receiving any
such amount shall purchase for cash from each of the other Lenders an interest
in such Lender’s Loans in such amount as shall result in a ratable
participation by the Lenders and each such holder in the aggregate unpaid
amount of the Loans, provided that if all or any portion of such excess
amount is thereafter recovered from the Lender or the holder making such
purchase, such purchase shall be rescinded and the purchase price restored to
the extent of such recovery, together with interest or other amounts, if any,
required by law (including court order) to be paid by the Lender or the holder
making such purchase. Notwithstanding anything to the contrary contained in
this Agreement or any of the other Loan Documents, any Lender that fails at any
time to comply with the provisions of this Section 10.11
with respect to purchasing participations from the other Lenders whereby such
Lender’s share of any payment received, whether by setoff or otherwise, is in
excess of its Ratable Share of such payments due and payable to all of the
Lenders, when and to the full extent required by the provisions of this
Agreement, shall be deemed delinquent (a “Delinquent Lender”)
and shall be  deemed  a Delinquent Lender until such time as each
such delinquency and all of its obligations hereunder are satisfied. A
Delinquent Lender shall be deemed to have assigned any and all payments due to
it from the Borrower, whether on account of or relating to outstanding Loans,
Letters of Credit, interest, fees or otherwise, to the remaining nondelinquent
Lenders for application to, and reduction of, their respective Ratable Share of
all outstanding Loans and other unpaid Obligations of any of the Loan Parties.
The Delinquent Lender hereby authorizes the 

 

98

 

Agent to distribute such payments to the
nondelinquent Lenders in proportion to their respective Ratable Share of all
outstanding Loans and other unpaid Obligations of any of the Loan Parties. A
Delinquent Lender shall be deemed to have satisfied in full a delinquency when
and if, as a result of application of the assigned payments to all outstanding
Loans and other unpaid Obligations of any of the Loan Parties to the
nondelinquent Lenders, the Lenders’ respective Ratable Share of  all outstanding Loans and unpaid
Obligations  have returned to those in
effect immediately prior to such delinquency and without giving effect to the
nonpayment causing such delinquency.

 

10.12     Agent’s
Fee.

 

The Borrower shall pay to the Agent a nonrefundable fee (the “Agent’s Fee”) under the terms of a
letter (the “Agent’s Letter”) between the
Borrower and the Agent, as amended from time to time.

 

10.13     Availability
of Funds.

 

The Agent may assume that each Lender has made or will make the
proceeds of a Revolving Credit Loan available to the Agent in immediately
available funds unless the Agent shall have been notified by such Lender on or
before the later of (i) the close of Business on the Business Day
preceding the Borrowing Date with respect to such Loan; or (ii) two (2) hours
before the time on which the Agent actually funds the proceeds of such Loan to
the Borrower (whether using its own funds pursuant to this Section 10.13
or using proceeds deposited with the Agent by the Lenders and whether such
funding occurs before or after the time on which Lenders are required to
deposit the proceeds of such Loan with the Agent).  The Agent may, in reliance upon such
assumption (but shall not be required to), make available to the Borrower a
corresponding amount in the applicable currency.  If such corresponding amount is not in fact
made available to the Agent by such Lender in the applicable currency, the
Agent shall be entitled to recover such amount on demand from such Lender (or,
if such Lender fails to pay such amount forthwith upon such demand from the
Borrower) together with interest thereon, in respect of each day during the
period commencing on the date such amount was made available to the Borrower
and ending on the date the Agent recovers such amount, at a rate per annum
equal to (a) the Federal Funds Effective Rate during the first three (3) days
after such interest shall begin to accrue and (b) the applicable interest
rate in respect of such Loan after the end of such three-day period.

 

10.14     Calculations.

 

In the absence of gross negligence or willful misconduct, the Agent
shall not be liable for any error in computing the amount payable to any Lender
whether in respect of the Loans, fees or any other amounts due to the Lenders
under this Agreement.  In the event an
error in computing any amount payable to any Lender is made, the Agent, the
Borrower and each affected Lender shall, forthwith upon discovery of such
error, make such adjustments as shall be required to correct such error, and
any compensation therefore will be calculated at the Federal Funds Effective
Rate.

 

99

 

10.15     No
Reliance on Agent’s Customer Identification Program.

 

Each Lender acknowledges and agrees that neither such Lender, nor any
of its Affiliates, participants or assignees, may rely on the Agent to carry
out such Lender’s, Affiliate’s, participant’s or assignee’s customer identification
program, or other obligations required or imposed under or pursuant to the USA
Patriot Act or the regulations thereunder, including the regulations contained
in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP
Regulations”), or any other Anti-Terrorism Law, including any
programs involving any of the following items relating to or in connection with
any of the Loan Parties, their Affiliates or their agents, the Loan Documents
or the transactions hereunder or contemplated hereby: (i) any identity
verification procedures, (ii) any recordkeeping, (iii) comparisons
with government lists, (iv) customer notices or (v) other procedures
required under the CIP Regulations or such other Laws.

 

10.16     Certain
Releases of Pledged Collateral.

 

It is expressly agreed by each Lender, that upon the written request of
the Borrower (accompanied by such certificates and other documentation as the
Agent may reasonably request) the Agent on behalf of the Lenders and without
any consent or action by any Lender, may, so long as no Event of Default exists
after giving effect thereto, release (i) any portion of the Pledged
Collateral and (ii) any Guarantor from its obligations under the Guaranty
Agreement, in either case in connection with any sale, transfer, lease, disposition,
merger or other transaction permitted by this Agreement; provided, however,
that the provisions set forth in this Section 10.16 apply
only to releases of portions of the Pledged Collateral or Guarantors where this
Agreement does not otherwise expressly provide for the consent or approval of
all Lenders.  (By way of example, the
provisions of this Section 10.16
would not apply to any release of all or substantially all of the Pledged
Collateral, which release, in accordance with Section 11.1.3
[Release of Collateral or Guarantor], would require the consent of all of
the Lenders).

 

11.           MISCELLANEOUS

 

11.1       Modifications,
Amendments or Waivers.

 

With the written consent of the Required Lenders, the Agent, acting on
behalf of all the Lenders, and the Borrower, on behalf of the Loan Parties, may
from time to time enter into written agreements amending or changing any
provision of this Agreement or any other Loan Document or the rights of the
Lenders or the Loan Parties hereunder or thereunder, or may grant written
waivers or consents to a departure from the due performance of the Obligations
of the Loan Parties hereunder or thereunder. 
Any such agreement, waiver or consent made with such written consent
shall be effective to bind all the Lenders and the Loan Parties; provided,
that, no such agreement, waiver or consent may be made which will:

 

100

 

11.1.1                  Increase of Commitment; Extension of
Expiration Date.

 

Without the written
consent of the Required Lenders and the Lender effected thereby increase the
amount of the Revolving Credit Commitment of such Bank hereunder or without the
written consent of all Lenders extend the Expiration Date;

 

11.1.2                  Extension of Payment; Reduction of
Principal Interest or Fees; Modification of Terms of Payment.

 

Without the written
consent of all Lenders, whether or not any Loans are outstanding, extend the
time for payment of principal or interest of any Loan (excluding the due date
of any mandatory prepayment of a Loan or any mandatory Commitment reduction in
connection with such a mandatory prepayment hereunder except for mandatory
reductions of the Commitments on the Expiration Date), the Commitment Fee or
any other fee payable to any Lender, or reduce the principal amount of or the
rate of interest borne by any Loan or reduce the Commitment Fee or any other
fee payable to any Lender, or any other fee payable to any Lender;

 

11.1.3                  Release of Collateral or Guarantor.

 

Without the written
consent of all Lenders (other than Defaulting Lenders), release all or
substantially all of the Pledged Collateral, or release any Guarantor from its
Obligations under the Guaranty Agreement, except in connection with a sale of
such Guarantor otherwise permitted hereunder, or

 

11.1.4                  Miscellaneous.

 

Without the written
consent of all Lenders (other than Defaulting Lenders), amend Section 5.2 [Pro Rata
Treatment of Lenders], Section 10.9
[Exculpatory Provisions, Etc.] or Section 10.11
[Equalization of Lenders] or this Section 11.1,
alter any provision regarding the pro rata treatment of the Lenders, change the
definition of Required Lenders, or change any requirement providing for the
Lenders or the Required Lenders to authorize the taking of any action
hereunder; provided, further, that no agreement, waiver or consent which would
modify the interests, rights or obligations of the Agent in its capacity as
Agent or as the issuer of Letters of Credit shall be effective without the
written consent of the Agent, and provided, further that, if in
connection with any proposed waiver, amendment or modification referred to in Section 11.1.1 through Section 11.1.4 above, the
consent of the Required Lenders is obtained but the consent of one or more of
such other Lenders whose consent is required is not obtained (each a “Non-Consenting Lender”), then the
Borrower shall have the right to replace any such Non-Consenting Lender with
one or more replacement Lenders pursuant to Section 5.6.2
[Replacement of a Lender].

 

11.2       No
Implied Waivers; Cumulative Remedies; Writing Required.

 

No course of dealing and no delay or failure of the Agent or any Lender
in exercising any right, power, remedy or privilege under this Agreement or any
other Loan Document shall affect any other or future exercise thereof or
operate as a waiver thereof, nor shall any single or partial exercise thereof
or any abandonment or discontinuance of steps to

 

101

 

enforce such a right, power, remedy or
privilege preclude any further exercise thereof or of any other right, power,
remedy or privilege.  The rights and
remedies of the Agent and the Lenders under this Agreement and any other Loan
Documents are cumulative and not exclusive of any rights or remedies which they
would otherwise have.  Any waiver,
permit, consent or approval of any kind or character on the part of the Agent
or any Lender of any breach or default under this Agreement or any such waiver
of any provision or condition of this Agreement must be in writing and shall be
effective only to the extent specifically set forth in such writing.

 

11.3        Reimbursement and Indemnification of Lenders by the Borrower; Taxes.

 

The Borrower agrees unconditionally upon demand to pay or reimburse to
each Lender (other than the Agent, as to which the Borrower’s Obligations are
set forth in Section 10.10
[Reimbursement and Indemnification of Agent by Lenders]) and to save such
Lender harmless against (i) liability for the payment of all reasonable
out-of-pocket costs, expenses and disbursements (including fees and expenses of
counsel (including allocated costs of staff counsel) for each Lender except
with respect to (a) and (b) below), incurred by such Lender (a) in
connection with the administration and interpretation of this Agreement, and
other instruments and documents to be delivered hereunder, (b) relating to
any amendments, waivers or consents pursuant to the provisions hereof, (c) in
connection with the enforcement of this Agreement or any other Loan Document,
or collection of amounts due hereunder or thereunder or the proof and
allowability of any claim arising under this Agreement or any other Loan
Document, whether in bankruptcy or receivership proceedings or otherwise, (d) in
any workout or restructuring or in connection with the protection,
preservation, exercise or enforcement of any of the terms hereof or of any
rights hereunder or under any other Loan Document or in connection with any
foreclosure, collection or bankruptcy proceedings, and (e) in connection
with any Environmental Complaint threatened or asserted against the Lender in
any way relating to or arising out of this Agreement or any other Loan
Documents (including, without limitation, the protection, preservation,
exercise or enforcement of any of the terms hereof or of any rights hereunder
or under any other Loan Document or in connection with any foreclosure,
collection or bankruptcy proceedings or in any workout or restructuring), or (ii) all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever which
may be imposed on, incurred by or asserted against such Lender, in its capacity
as such, in any way relating to or arising out of (y) this Agreement or
any other Loan Documents or any action taken or omitted by such Lender
hereunder or thereunder and (z) any Environmental Complaint in any way
relating to or arising out of this Agreement or any other Loan Documents or any
action taken or omitted by such Lender hereunder or thereunder, provided
that the Borrower shall not be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements (A) if the same results from such Lender’s gross
negligence or willful misconduct, as determined in a final, unappealable
judgment of a court of competent jurisdiction, or (B) if the Borrower was
not given notice of the subject claim and the opportunity to participate in the
defense thereof, at its expense (except that the Borrower shall remain liable
to the extent such failure to give notice does not result in a loss to the
Borrower), or (C) if the same results from a compromise or settlement
agreement entered into without the consent of the Borrower, which shall not be
unreasonably withheld.  The Lenders will
attempt to minimize the fees and expenses of legal counsel for the Lenders
which are subject to reimbursement by the Borrower hereunder 

 

102

 

by considering the usage of one law firm to
represent the Lenders and the Agent if appropriate under the
circumstances.  The Borrower agrees
unconditionally to pay all stamp, document, transfer, recording or filing taxes
or fees and similar impositions now or hereafter determined by the Agent or any
Lender to be payable in connection with this Agreement or any other Loan
Document, and the Borrower agrees unconditionally to save the Agent and the
Lenders harmless from and against any and all present or future claims,
liabilities or losses with respect to or resulting from any omission to pay or
delay in paying any such taxes, fees or impositions.

 

11.4        Holidays.

 

Whenever payment of a Loan to be made or taken hereunder shall be due
on a day which is not a Business Day such payment shall be due on the next
Business Day (except as provided in Section 4.2
[Interest Periods] with respect to Interest Periods under the Euro-Rate Option)
and such extension of time shall be included in computing interest and fees,
except that the Loans shall be due on the Business Day preceding the Expiration
Date if the Expiration Date is not a Business Day.  Whenever any payment or action to be made or
taken hereunder (other than payment of the Loans) shall be stated to be due on
a day which is not a Business Day, such payment or action shall be made or
taken on the next following Business Day, and such extension of time shall not
be included in computing interest or fees, if any, in connection with such
payment or action.

 

11.5        Funding by Branch, Subsidiary or Affiliate.

 

11.5.1                  Notional Funding.

 

Each Lender shall have
the right from time to time, without notice to the Borrower, to deem any
branch, Subsidiary or Affiliate (which for the purposes of this Section 11.5 shall mean any
corporation or association which is directly or indirectly controlled by or is
under direct or indirect common control with any corporation or association
which directly or indirectly controls such Lender) of such Lender to have made,
maintained or funded any Loan to which the Euro-Rate Option applies at any
time, provided that immediately following (on the assumption that a
payment were then due from the Borrower to such other office), and as a result
of such change, the Borrower would not be under any greater financial
obligation pursuant to Section 5.5
[Additional Compensation in Certain Circumstances] than it would have been in
the absence of such change.  Notional
funding offices may be selected by each Lender without regard to such Lender’s
actual methods of making, maintaining or funding the Loans or any sources of
funding actually used by or available to such Lender.

 

11.5.2                  Actual Funding.

 

Each Lender shall have
the right from time to time to make or maintain any Loan by arranging for a
branch, Subsidiary or Affiliate of such Lender to make or maintain such Loan
subject to the last sentence of this Section 11.5.2.  If any Lender causes a branch, Subsidiary or
Affiliate to make or maintain any part of the Loans hereunder, all terms and
conditions of this Agreement shall, except where the context clearly requires
otherwise, be applicable to such part of the Loans to the same extent as if
such Loans were made or maintained 

 

103

 

by such Lender,
but in no event shall any Lender’s use of such a branch, Subsidiary or
Affiliate to make or maintain any part of the Loans hereunder cause such Lender
or such branch, Subsidiary or Affiliate to incur any cost or expenses payable
by the Borrower hereunder or require the Borrower to pay any other compensation
to any Lender (including any expenses incurred or payable pursuant to Section 5.5 [Additional
Compensation in Certain Circumstances]) which would otherwise not be incurred.

 

11.6        Notices; Effectiveness; Electronic Communication.

 

11.6.1                  Notices Generally.

 

Except in the case of
notices and other communications expressly permitted to be given by telephone
(and except as provided in Section 11.6.2
[Electronic Communications]), all notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by telecopier (i) if
to a Lender, to it at its address set forth in its administrative
questionnaire, or (ii) if to any other Person, to it at its address set
forth on Schedule 1.1(B).

 

Notices sent by hand or
overnight courier service, or mailed by certified or registered mail, shall be
deemed to have been given when received; notices sent by telecopier shall be
deemed to have been given when sent (except that, if not given during normal
business hours for the recipient, shall be deemed to have been given at the
opening of business on the next Business Day for the recipient).  Notices delivered through electronic
communications to the extent provided in Section 11.6.2
[Electronic Communications], shall be effective as provided in such Section.

 

11.6.2                  Electronic Communications.

 

Notices and other
communications to the Lenders hereunder may be delivered or furnished by
electronic communication (including e-mail and Internet or intranet websites)
pursuant to procedures approved by the Agent; provided that the
foregoing shall not apply to notices to any Lender if such Lender, has notified
the Agent that it is incapable of receiving notices by electronic
communication.  The Agent or the Borrower
may, in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it; provided
that approval of such procedures may be limited to particular notices or
communications.  Unless the Agent
otherwise prescribes, (i) notices and other communications sent to an
e-mail address shall be deemed received upon the sender’s receipt of an
acknowledgement from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other written
acknowledgement); provided that if such notice or other communication is
not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on
the next Business Day for the recipient, and (ii) notices or
communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that
such notice or communication is available and identifying the website address
therefore.

 

104

 

11.6.3                  Change of Address, Etc.

 

Any party hereto may
change its address, e-mail address or telecopier number for notices and other
communications hereunder by notice to the other parties hereto.

 

11.7        Severability.

 

The provisions of this Agreement are intended to be severable.  If any provision of this Agreement shall be
held invalid or unenforceable in whole or in part in any jurisdiction, such
provision shall, as to such jurisdiction, be ineffective to the extent of such
invalidity or unenforceability without in any manner affecting the validity or
enforceability thereof in any other jurisdiction or the remaining provisions
hereof in any jurisdiction.

 

11.8        Governing Law.

 

Each Letter of Credit and Section 2.10
[Letter of Credit Subfacility] shall be subject to the Uniform Customs and
Practice for Documentary Credits (1993 Revision), International Chamber of
Commerce Publication No. 500, as the same may be revised or amended from
time to time, and to the extent not inconsistent therewith, the internal laws
of the Commonwealth of Pennsylvania without regard to its conflict of laws
principles, and the balance of this Agreement shall be deemed to be a contract
under the Laws of the Commonwealth of Pennsylvania and for all purposes shall
be governed by and construed and enforced in accordance with the internal laws
of the Commonwealth of Pennsylvania without regard to its conflict of laws
principles.

 

11.9        Prior Understanding.

 

This Agreement and the other Loan Documents supersede all prior
understandings and agreements, whether written or oral, between the parties
hereto and thereto relating to the transactions provided for herein and
therein, including any prior confidentiality agreements and commitments.

 

11.10      Duration;
Survival.

 

All representations and warranties of the Loan Parties contained herein
or made in connection herewith shall survive the making of Loans and issuance
of Letters of Credit and shall not be waived by the execution and delivery of
this Agreement, any investigation by the Agent or the Lenders, the making of
Loans, issuance of Letters of Credit, or payment in full of the Loans.  All covenants and agreements of the Loan
Parties contained in Sections 8.1
[Affirmative Covenants], Section 8.2
[Negative Covenants] and Section 8.3
[Reporting Requirements] herein shall continue in full force and effect from
and after the date hereof so long as the Borrower may borrow or request Letters
of Credit hereunder and until termination of the Commitments and payment in
full of the Loans and expiration or termination of all Letters of Credit.  All covenants and agreements of the Borrower
contained herein relating to the payment of principal, interest, premiums,
additional compensation or expenses and indemnification, including those set
forth in Section 5 [Payments] and Section 10.8 [Reimbursement
and Indemnification of Agent by the Borrower], Section 10.10
[Reimbursement of Agent by Lender] and Section11.3

 

105

 

[Reimbursement of Lenders by Borrower; Etc.],
shall survive payment in full of the Loans, expiration or termination of the
Letters of Credit and termination of the Commitments.

 

11.11     Successors
and Assigns.

 

11.11.1                    Successors and Assigns Generally.

 

The provisions of this
Agreement shall be binding upon, and inure to the benefit of, the parties
hereto and their respective successors and assigns permitted hereby, except
that neither the Borrower nor any other Loan Party may assign or otherwise
transfer any of its rights or obligations hereunder without the prior written
consent of the Agent and each Lender and no Lender may assign or otherwise
transfer any of its rights or obligations hereunder except (i) to an
assignee in accordance with the provisions of Section 11.11.2
[Assignments by Lenders], (ii) by way of participation in accordance with
the provisions of Section 11.11.4
[Participations], or (iii) by way of pledge or assignment of a security
interest subject to the restrictions of Section 11.11.6
[Certain Pledges; Successors and Assigns Generally] (and any other attempted
assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby, Participants
to the extent provided in Section 11.11.4
[Participations] and, to the extent expressly contemplated hereby, the Related
Parties of each of the Agent and the Lenders) any legal or equitable right,
remedy or claim under or by reason of this Agreement.

 

11.11.2                    Assignments by Lenders.

 

Any Lender may at any
time assign to one or more assignees all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitment
and the Loans at the time owing to it); provided that any such
assignment shall be subject to the following conditions:

 

(i)            Minimum Amounts.

 

(A)          in the case of an assignment of the
entire remaining amount of the assigning Lender’s Commitment and the Loans at
the time owing to it or in the case of an assignment to a Lender, an Affiliate
of a Lender or an Approved Fund, no minimum amount need be assigned; and

 

(B)           in any case not described in clause
(i)(A) of this Section 11.11.2,
the aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) or, if the applicable Commitment is not then in effect,
the principal outstanding balance of the Loans of the assigning Lender subject
to each such assignment (determined as of the date the Assignment and
Assumption Agreement with respect to such assignment is delivered to the Agent
or, if “Trade Date” is specified in the Assignment and Assumption Agreement, as
of the Trade Date) shall not be less than $5,000,000.00, unless each of the
Agent and, so long as no Event of Default has occurred and is continuing, the
Borrower otherwise consents (each such consent not to be unreasonably withheld
or delayed).

 

106

 

(ii)          Proportionate Amounts.

 

Each
partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement with
respect to the Loan or the Commitment assigned.

 

(iii)         Required Consents.

 

Subject
to the following sentence, no consent shall be required for any assignment
except for the consent of the Agent (which shall not be unreasonably withheld
or delayed). The consent of the Borrower (such consent not to be unreasonably
withheld or delayed) shall also be required for an assignment unless (a) an
Event of Default has occurred and is continuing at the time of such assignment
or (b) such assignment is to a Lender, an Affiliate of a Lender or an
Approved Fund.

 

(iv)         Assignment and Assumption Agreement.

 

The
parties to each assignment shall execute and deliver to the Agent an Assignment
and Assumption Agreement, together with a processing and recordation fee of
$3,500.00, and the assignee, if it is not a Lender, shall deliver to the Agent an
administrative questionnaire provided by the Agent.

 

(v)          No Assignment to Borrower.

 

No
such assignment shall be made to the Borrower or any of the Borrower’s
Affiliates or Subsidiaries.

 

(vi)         No Assignment to Natural Persons.

 

No
such assignment shall be made to a natural person.

 

Subject to acceptance and recording thereof by the Administrative Agent
pursuant to Section 11.11.3
[Register], from and after the effective date specified in each Assignment and
Assumption Agreement, the assignee thereunder shall be a party to this
Agreement and, to the extent of the interest assigned by such Assignment and
Assumption Agreement, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Assumption Agreement, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption Agreement covering all of the assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a party hereto)
but shall continue to be entitled to the benefits of Section 4.4 
[Euro-Rate Unascertainable; Illegality; Increased Costs; Deposits Not
Available], Section 5.5 [Additional
Compensation in Certain Circumstances], Section 5.6
[Taxes] and Section 11.3
[Reimbursement and Indemnification of Lender by the Borrower; Taxes]  with respect to facts and circumstances occurring prior to
the effective date of such assignment. 
Any assignment or transfer by a Lender of rights or obligations under
this Agreement that does not comply with this Section 11.11.2
shall be treated for purposes of this Agreement as a sale by 

 

107

 

such Lender of a participation in such rights and obligations in
accordance with Section 11.11.4
[Participations].

 

11.11.3                    Register.

 

The Agent, acting solely
for this purpose as an agent of the Borrower, shall maintain a record of the
names and addresses of the Lenders, and the Commitments of, and principal amounts
of the Loans owing to, each Lender pursuant to the terms hereof from time to
time.  Such register shall be conclusive,
and the Borrower, the Agent and the Lenders may treat each Person whose name is
in such register pursuant to the terms hereof as a Lender hereunder for all
purposes of this Agreement, notwithstanding notice to the contrary.  Such register shall be available for
inspection by the Borrower and any Lender, at any reasonable time and from time
to time upon reasonable prior notice.

 

11.11.4                    Participations.

 

Any Lender may at any
time, without the consent of, or notice to, the Borrower or the Agent, sell
participations to any Person (other than a natural person or the Borrower or
any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights
and/or obligations under this Agreement (including all or a portion of its
Commitment and/or the Loans owing to it); provided that (i) such Lender’s
obligations under this Agreement shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance
of such obligations and (iii) the Borrower, the Agent and the Lenders
shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under this Agreement.

 

Any agreement or
instrument pursuant to which a Lender sells such a participation shall provide
that such Lender shall retain the sole right to enforce this Agreement and to
approve any amendment, modification or waiver of any  provision of this Agreement; provided
that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, modification or
waiver with respect to Section 11.1.1
[Increase of Commitment, Etc.], Section 11.1.2
[Extension of Payment, Etc.], or Section 11.1.3
[Release of Collateral or Guarantor]). 
Subject to Section 11.11.5
[Limitations upon Participant Rights Successors and Assigns Generally], the
Borrower agrees that each Participant shall be entitled to the benefits of Section 4.4 [Euro-Rate
Unascertainable; Illegality; Increased Costs; Deposits Not Available], Section 5.5 [Additional
Compensation in Certain Circumstances]  to the same
extent as if it were a Lender and had acquired its interest by assignment
pursuant to Section 11.11.2
[Assignments by Lenders], Section 5.6 [Taxes] and Section 11.3 [Reimbursement and Indemnification of
Lenders by the Borrower; Taxes].  To the
extent permitted by Law, each Participant also shall be entitled to the
benefits of Section 9.2.3 [Setoff]  as though it were a Lender; provided such
Participant agrees to be subject to Section 10.11
[Equalization of Lenders]  as though it
were a Lender.

 

108

 

11.11.5                    Limitations upon Participant Rights
Successors and Assigns Generally.

 

A Participant shall not
be entitled to receive any greater payment under Section 5.5
[Additional Compensation in Certain Circumstances], Section 5.6
[Taxes] or Section 11.3
[Reimbursement and Indemnification of Lender by the Borrower; Taxes ]  than the applicable Lender would have been entitled to
receive with respect to the participation sold to such Participant, unless the
sale of the participation to such Participant is made with the Borrower’s prior
written consent.  A Participant that
would be a Foreign Lender if it were a Lender shall not be entitled to the
benefits of Section 5.6 [Taxes]  unless the Borrower is notified of the participation sold
to such Participant and such Participant agrees, for the benefit of the
Borrower, to comply with Section 10.11
[Equalization of Lenders]  as though it
were a Lender.

 

11.11.6                    Certain Pledges; Successors and Assigns
Generally.

 

Any Lender may at any
time pledge or assign a security interest in all or any portion of its rights
under this Agreement to secure obligations of such Lender, including any pledge
or assignment to secure obligations to a Federal Reserve Bank; provided that no
such pledge or assignment shall release such Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party
hereto.

 

11.12      Confidentiality.

 

11.12.1                    General.

 

The Agent and the Lenders
each agree to keep confidential all information obtained from any Loan Party or
its Subsidiaries which is nonpublic and confidential or proprietary in nature
(including any information the Borrower specifically designates as
confidential), except as provided below, and to use such information only in
connection with their respective capacities under this Agreement and for the
purposes contemplated hereby.  The Agent
and the Lenders shall be permitted to disclose such information (i) to any
Affiliates and/or to outside legal counsel, accountants and other professional
advisors who need to know such information in connection with the
administration and enforcement of this Agreement, subject to agreement of such
Persons to maintain the confidentiality, (ii) to assignees and
participants as contemplated by Section 11.11
[Successors and Assigns], and prospective assignees and participants, (iii) to
the extent requested by any bank regulatory authority or, with notice to the
Borrower, as otherwise required by applicable Law or by any subpoena or similar
legal process, or in connection with any investigation or proceeding arising
out of the transactions contemplated by this Agreement, (iv) if it becomes
publicly available other than as a result of a breach of this Agreement or
becomes available from a source not known to be subject to confidentiality
restrictions, or (v) if the Borrower shall have consented to such
disclosure.  Notwithstanding anything
herein to the contrary, the information subject to this Section 11.12.1
shall not include, and the Agent and each Lender may disclose without
limitation of any kind, any information with respect to the “tax treatment” and
“tax structure” (in each case, within the meaning of Treasury Regulation Section 1.6011-4)
of the transactions contemplated hereby and all materials of any kind (including
opinions or other tax analyses) that are provided to the Agent 

 

109

 

or such Lender
relating to such tax treatment and tax structure; provided that with
respect to any document or similar item that in either case contains
information concerning the tax treatment or tax structure of the transaction as
well as other information, this sentence shall only apply to such portions of
the document or similar item that relate to the tax treatment or tax structure
of the Loans, Letters of Credit and transactions contemplated hereby.

 

11.12.2                    Sharing Information With Affiliates of
the Lenders.

 

Each Loan Party
acknowledges that from time to time financial advisory, investment banking and
other services may be offered or provided to the Borrower or one or more of its
Affiliates (in connection with this Agreement or otherwise) by any Lender or by
one or more Subsidiaries or Affiliates of such Lender and each of the Loan
Parties hereby authorizes each Lender to share any information delivered to
such Lender by such Loan Party and its Subsidiaries pursuant to this Agreement,
or in connection with the decision of such Lender to enter into this Agreement,
to any such Subsidiary or Affiliate of such Lender, it being understood that
any such Subsidiary or affiliate of any Lender receiving such information shall
be bound by the provisions of Section 11.12.1
as if it were a Lender hereunder.  Such
authorization shall survive the repayment of the Loans and other Obligations and
the termination of the Commitments.

 

11.13      Counterparts.

 

This Agreement may be executed by different parties hereto on any
number of separate counterparts, each of which, when so executed and delivered,
shall be an original, and all such counterparts shall together constitute one
and the same instrument.

 

11.14      Agent’s
or Lender’s Consent.

 

Whenever the Agent’s or any Lender’s consent is required to be obtained
under this Agreement or any of the other Loan Documents as a condition to any
action, inaction, condition or event, the Agent and each Lender shall be
authorized to give or withhold such consent in its sole and absolute discretion
and to condition its consent upon the giving of additional collateral, the
payment of money or any other matter.

 

11.15      Exceptions.

 

The representations, warranties and covenants contained herein shall be
independent of each other, and no exception to any representation, warranty or
covenant shall be deemed to be an exception to any other representation,
warranty or covenant contained herein unless expressly provided, nor shall any
such exceptions be deemed to permit any action or omission that would be in
contravention of applicable Law.

 

110

 

11.16      Consent
To Forum; Waiver Of Jury Trial.

 

11.16.1                    Submission To Jurisdiction.

 

THE BORROWER AND EACH
OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS
PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF
PENNSYLVANIA SITTING IN ALLEGHENY COUNTY AND OF THE UNITED STATES DISTRICT
COURT OF THE WESTERN DISTRICT OF PENNSYLVANIA, AND ANY APPELLATE COURT FROM ANY
THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY
JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES
THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD
AND DETERMINED IN SUCH PENNSYLVANIA STATE COURT OR, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO AGREES THAT A
FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY LAW.  NOTHING IN THIS
AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE AGENT,
ANY LENDER OR THE ISSUING LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE
BORROWER OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY
JURISDICTION.

 

11.16.2                    Waiver Of Venue.

 

THE BORROWER AND EACH
OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO
IN THIS SECTION 11.16.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH
COURT AND AGREES NOT ASSERT ANY SUCH DEFENSE.

 

11.16.3                    Service Of Process.

 

EACH PARTY HERETO
IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES
IN SECTION 11.6 [NOTICES;
EFFECTIVENESS; ELECTRONIC COMMUNICATION]. 
NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO
SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

 

111

 

11.16.4                 Waiver Of Jury Trial.

 

EACH PARTY HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY). 
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
ADMINISTRATIVE AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE
OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

 

11.17       USA Patriot Act. Certification from Lenders and
Participants.

 

Each Lender or assignee or participant of a Lender that is not
incorporated under the Laws of the United States of America or a state thereof
(and is not excepted from the certification requirement contained in Section 313
of the USA Patriot Act and the applicable regulations because it is both (i) an
affiliate of a depository institution or foreign bank that maintains a
physical presence in the United states or foreign county, and (ii) subject
to supervision by a banking authority regulating such affiliated depository
institution or foreign bank) shall deliver to the Agent the certification, or,
if applicable, recertification, certifying that such Bank is not a “shell” and
certifying to other matters as required by Section 313 of the USA Patriot
Act and the applicable regulations: (1) within 10 days after the Closing
Date, and (2) as such other times as are required under the USA Patriot
Act.

 

11.18       Joinder of Guarantors.

 

Any Material Domestic Subsidiary of the Borrower which is required to
join this Agreement as a Guarantor pursuant to Section 8.2.9
[Subsidiaries, Partnerships and Joint Ventures] shall execute and deliver to
the Agent (i) a Guarantor Joinder in substantially the form attached
hereto as Exhibit 1.1(G)(1) pursuant
to which it shall join as a Guarantor each of the documents to which the
Guarantors are parties; (ii) documents in the forms described in Section 7.1 [First Loans]
modified as appropriate to relate to such Material Domestic Subsidiary, and (iii) documents
necessary to grant and perfect Prior Security Interests in all Pledged
Collateral held by such Material Domestic Subsidiary.  The Loan Parties shall deliver such Guarantor
Joinder and related documents to the Agent within five (5) Business Days
after the date of the filing of such Material Domestic Subsidiary’s articles of
incorporation if the Material Domestic Subsidiary is a corporation, the date of
the filing of its certificate of limited partnership if it is a limited
partnership or the date of its organization if it is an entity other than a
limited partnership or corporation.   

 

112

 

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

 

	
   

  	
  COVANCE INC., a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William E.
  Klitgaard

  
	
   

  	
   

  	
  Name:

  	
  William E. Klitgaard

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CJB INC., a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William E.
  Klitgaard

  
	
   

  	
   

  	
  Name:

  	
  William E. Klitgaard

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COVANCE CENTRAL LABORATORY  SERVICES INC.,
  a Delaware corporation 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William E.
  Klitgaard

  
	
   

  	
   

  	
  Name:

  	
  William E. Klitgaard

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COVANCE CENTRAL LABORATORY  SERVICES LIMITED
  PARTNERSHIP, an Indiana limited partnership 

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Covance Central
  Laboratory Services Inc., a Delaware corporation, its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ William E.
  Klitgaard

  
	
   

  	
   

  	
   

  	
  Name:

  	
  William E. Klitgaard

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
						

 

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  COVANCE PRECLINICAL CORPORATION, a
  Washington Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William E.
  Klitgaard

  
	
   

  	
   

  	
  Name:

  	
  William E. Klitgaard

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COVANCE LABORATORIES INC., a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William E.
  Klitgaard

  
	
   

  	
   

  	
  Name:

  	
  William E. Klitgaard

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  

 

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  PNC BANK, NATIONAL ASSOCIATION, individually and as Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward M. Tessalone

  
	
   

  	
   

  	
  Name:

  	
  Edward M. Tessalone

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  

 

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  BANK OF TOKYO - MITSUBISHI UFJ
  TRUST COMPANY,
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George Stoecklein

  
	
   

  	
   

  	
  Name:

  	
  George Stoecklein

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

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  TORONTO DOMINION (NEW YORK) LLC, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jackie Barrett

  
	
   

  	
   

  	
  Name:

  	
  Jackie Barrett

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  

 

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  JP MORGAN CHASE BANK N.A., as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ D. Scott Farquhar

  
	
   

  	
   

  	
  Name:

  	
  D. Scott Farquhar

  
	
   

  	
   

  	
  Title:

  	
  its Vice President

  

 

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  BANK OF AMERICA, N.A., as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David J. Bardwil

  
	
   

  	
   

  	
  Name:

  	
  David J. Bardwil

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  

 

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  BARCLAYS BANK PLC, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Vincent Muldoon

  
	
   

  	
   

  	
  Name:

  	
  Vincent Muldoon

  
	
   

  	
   

  	
  Title:

  	
  Director – GTS MNC

  

 

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  CREDIT SUISSE, CAYMAN ISLANDS
  BRANCH, as a
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Karim Blasetti

  
	
   

  	
   

  	
  Name:

  	
  Karim Blasetti

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mikhail Faybusovich

  
	
   

  	
   

  	
  Name:

  	
  Mikhail Faybusovich

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

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  CITIBANK, NA, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eileen F. McEvoy

  
	
   

  	
   

  	
  Name:

  	
  Eileen F. McEvoy

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 

SCHEDULE 1.1(A)

 

PRICING GRID

 

	
  Level

  	
   

  	
  Leverage

  Ratio

  	
   

  	
  Commitment

  Fee

  	
   

  	
  Revolving

  Credit Base

  Rate

  Spread

  	
   

  	
  Revolving

  Credit Euro-

  Rate

  Spread

  	
   

  	
  Letter of

  Credit

  Fee

  	
   

  
	
  I

  	
   

  	
  Less
  than or equal to 1.0 to 1.0

  	
   

  	
  .30

  	
  %

  	
  1.00

  	
  %

  	
  2.00

  	
  %

  	
  2.00

  	
  %

  
	
  II

  	
   

  	
  Greater
  than 1.0 to 1.0 or less than or equal to 1.50 to 1.0

  	
   

  	
  .35

  	
  %

  	
  1.25

  	
  %

  	
  2.25

  	
  %

  	
  2.25

  	
  %

  
	
  III

  	
   

  	
  Greater
  than 1.50 to 1.0 but less than or equal to 2.0 to 1.0

  	
   

  	
  .40

  	
  %

  	
  1.50

  	
  %

  	
  2.50

  	
  %

  	
  2.50

  	
  %

  
	
  IV

  	
   

  	
  Greater
  than 2.0 to 1.0

  	
   

  	
  .45

  	
  %

  	
  1.75

  	
  %

  	
  2.75

  	
  %

  	
  2.75

  	
  %

  

 

provided, however, that if for purposes of calculating the Leverage
Ratio, EBITDA is zero or negative, level IV shall apply.

 

For purposes of determining the Applicable Margin, the Applicable
Commitment Fee Rate and the Applicable Letter of Credit Fee:

 

(A)          The Applicable Margin, the Applicable Commitment
Fee Rate, and the Applicable Letter of Credit Fee shall be determined on the
Closing Date based on the Leverage Ratio computed on such date pursuant to that
certificate delivered pursuant to Section 7.1.11
[Compliance Certificate] hereof.

 

(B)           The Applicable
Commitment Fee Rate and the Applicable Letter of Credit Fee shall be recomputed
as of the end of each fiscal quarter based on the Leverage Ratio as of such
quarter end.  The Applicable Margin shall
be recomputed as of the end of each fiscal quarter based on the Leverage Ratio
as of such quarter end.  Any increase or
decrease in the Applicable Margin, the Applicable Commitment Fee Rate, or the
Applicable Letter of Credit Fee computed as of a quarter end shall be effective
on the date on which the Compliance Certificate and corresponding financial
statements evidencing such computation are due to be delivered under Section 8.3.3 [Certificate of
the Borrower] (the “Reset Date”);
provided, however, that if the Borrower has failed to deliver, or
caused to be delivered, such Compliance Certificate and corresponding financial
statements on or before the date such delivery is due as required, as the case
may be, under Section 8.3.1 [Quarterly
Financial Statements] or Section 8.3.2
[Annual Financial Statements] (the “Delivery Date”),
then the Leverage Ratio shall be deemed, solely for the purposes of determining
the Applicable Margin, the Applicable Commitment Fee Rate, and the Applicable
Letter of Credit Fee, to be greater than 2.0 to 1.0 from the Delivery Date
until the Compliance Certificate and financial statements due for the fiscal
quarter subsequent to the fiscal quarter for which delivery did not timely
occur by the requisite Delivery Date are timely

 

 

delivered as required, as the case may be,
under Section 8.3.2 [Quarterly
Financial Statements] or Section 8.3.3
[Annual Financial Statements].Exhibit 10.1

 

SONUS
NETWORKS, INC.

 

2007
STOCK INCENTIVE PLAN, AS AMENDED

 

1.                                       Purpose.

 

The purpose of this 2007 Stock Incentive Plan (the “Plan”)
of Sonus Networks, Inc., a Delaware corporation (the “Company”), is to
advance the interests of the Company’s stockholders by enhancing the Company’s
ability to attract, retain and motivate persons who are expected to make
important contributions to the Company and by providing such persons with
equity ownership opportunities and performance-based incentives that are
intended to align their interests with those of the Company’s stockholders.
Except where the context otherwise requires, the term “Company” shall include
any of the Company’s present or future parent or subsidiary corporations as
defined in Sections 424(e) or (f) of the Internal Revenue Code
of 1986, as amended, and any regulations promulgated thereunder (the “Code”)
and any other business venture (including, without limitation, joint venture or
limited liability company) in which the Company has a controlling interest, as
determined by the Board of Directors of the Company (the “Board”).

 

2.                                       Eligibility.

 

All of the Company’s employees, officers, directors,
consultants and advisors are eligible to receive options, stock appreciation
rights (“SARs”), restricted stock, restricted stock units and other stock-based
awards (each, an “Award”) under the Plan. Each person who receives an Award
under the Plan is deemed a “Participant”.

 

3.                                       Administration and Delegation.

 

(a)                                  Administration by Board
of Directors.  The Plan will be administered by the Board.
The Board shall have authority to grant Awards and to adopt, amend and repeal
such administrative rules, guidelines and practices relating to the Plan as it
shall deem advisable. The Board may construe and interpret the terms of the
Plan and any Award agreements entered into under the Plan. The Board may
correct any defect, supply any omission or reconcile any inconsistency in the
Plan or any Award in the manner and to the extent it shall deem expedient to
carry the Plan into effect and it shall be the sole and final judge of such
expediency. All decisions by the Board shall be made in the Board’s sole
discretion and shall be final and binding on all persons having or claiming any
interest in the Plan or in any Award. No director or person acting pursuant to
the authority delegated by the Board shall be liable for any action or
determination relating to or under the Plan made in good faith.

 

(b)                                 Appointment of
Committees.  To the extent permitted by applicable law,
the Board may delegate any or all of its powers under the Plan to one or more
committees or subcommittees of the Board (a “Committee”). All references in the
Plan to the “Board” shall 

 

 

mean the Board or a Committee of the Board or the
officers referred to in Section 3(c) to the extent that the Board’s
powers or authority under the Plan have been delegated to such Committee or
officers.

 

(c)                                  Delegation to Officers. 
To the extent permitted by applicable law, the Board may delegate to one
or more officers of the Company the power to grant Awards (subject to any
limitations under the Plan) to employees or officers of the Company or any of
its present or future subsidiary corporations and to exercise such other powers
under the Plan as the Board may determine, provided that the Board shall fix
the terms of the Awards to be granted by such officers (including the exercise
price of such Awards, which may include a formula by which the exercise price
will be determined) and the maximum number of shares subject to Awards that the
officers may grant; provided further, however, that no officer shall be
authorized to grant Awards to any “executive officer” of the Company (as
defined by Rule 3b-7 under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”)) or to any “officer” of the Company (as defined by Rule 16a-1
under the Exchange Act).

 

4.                                       Stock Available for Awards.

 

(a)                                  Number of Shares. 
Subject to adjustment under Section 9, the aggregate number of
shares of common stock, $0.001 par value per share, of the Company (the “Common
Stock”) reserved for Awards under the Plan is 9,500,000 plus the number of
shares of Common Stock subject to stock options granted under the Company’s
Amended and Restated 1997 Stock Incentive Plan that are surrendered to the
Company for cancellation on or before [January 31, 2010] in exchange for
Awards under this Plan pursuant to an exchange offer approved by the Company’s
stockholders. Shares issued under the Plan may consist in whole or in part of
authorized but unissued shares or treasury shares.

 

(b)                                 Share Count. 
Shares issued pursuant to Awards of Restricted Stock or Restricted Stock
Units or Other Stock Unit Awards will count against the shares of Common Stock
available for issuance under the Plan as one and one-half (1.5) shares for
every one (1) share issued in connection with the Award. Shares issued
pursuant to the exercise of Options will count against the shares available for
issuance under the Plan as one (1) share for every one (1) share to
which such exercise relates. The total number of shares subject to SARs that
are settled in shares shall be counted in full against the number of shares
available for issuance under the Plan, regardless of the number of shares
actually issued upon settlement of the SARs. If Awards are settled in cash, the
shares that would have been delivered had there been no cash settlement shall
not be counted against the shares available for issuance under the Plan. If any
Award expires or is terminated, surrendered or canceled without having been
fully exercised, is forfeited in whole or in part (including as the result of
shares of Common Stock subject to such Award being repurchased by the Company
at the original issuance price pursuant to a contractual repurchase right),
then the shares of Common Stock covered by such Award shall again become
available for the grant of Awards under the Plan; provided that any one (1) share
issued as Restricted Stock or subject to a Restricted Stock Unit Award or Other
Stock Unit Award that is forfeited or terminated shall be credited as one and
one-half (1.5) shares when determining the number of shares that shall again
become available for Awards under the Plan. Shares that are exchanged by a
Participant or withheld by the Company as full or partial payment in connection
with any Award under the Plan, as well as any shares exchanged by a Participant
or withheld by 

 

 

the Company to satisfy the tax withholding obligations
related to any Award, shall not be available for subsequent Awards under the
Plan. In the case of Incentive Stock Options (as hereinafter defined), the
foregoing provisions shall be subject to any limitations under the Code.

 

(c)                                  Sub-limits. 
Subject to adjustment under Section 9, the following sub-limits on
the number of shares subject to Awards shall apply:

 

(1)                                  Section 162(m) Per-Participant
Limit.  The maximum number of shares of Common Stock
with respect to which Awards may be granted to any Participant under the Plan
shall be 2,000,000 per calendar year. For purposes of the foregoing limit, the
combination of an Option in tandem with a SAR (as each is hereafter defined)
shall be treated as a single Award. The per-Participant limit described in this
Section 4(b)(1) shall be construed and applied consistently with Section 162(m) of
the Code or any successor provision thereto, and the regulations thereunder (“Section 162(m)”).

 

(2)                                  Limit on Awards to
Directors.  The maximum number of shares with respect to
which Awards may be granted to any director who is not an employee of the Company
at the time of grant shall be 100,000 per calendar year.

 

(d)                                 Substitute Awards. 
In connection with a merger or consolidation of an entity with the
Company or the acquisition by the Company of property or stock of an entity,
the Board may grant Awards in substitution for any options or other stock or
stock-based awards granted by such entity or an affiliate thereof. Substitute
Awards may be granted on such terms as the Board deems appropriate in the
circumstances, notwithstanding any limitations on Awards contained in the Plan.
Substitute Awards shall not count against the overall share limit set forth in Section 4(a) or
any sublimits contained in the Plan, except as may be required by reason of Section 422
and related provisions of the Code.

 

5.                                       Stock Options.

 

(a)                                  General. 
The Board may grant options to purchase Common Stock (each, an “Option”)
and determine the number of shares of Common Stock to be covered by each
Option, the exercise price of each Option and the conditions and limitations
applicable to the exercise of each Option, including conditions relating to
applicable federal or state securities laws, as it considers necessary or
advisable. An Option that is not an Incentive Stock Option (as hereinafter
defined) shall be designated a “Nonstatutory Stock Option.”

 

(b)                                 Incentive Stock
Options.  An Option that the Board intends to be an “incentive
stock option” as defined in Section 422 of the Code (an “Incentive Stock
Option”) shall only be granted to employees of Sonus Networks, Inc., any
of Sonus Networks, Inc.’s present or future parent or subsidiary
corporations as defined in Sections 424(e) or (f) of the Code,
and any other entities the employees of which are eligible to receive Incentive
Stock Options under the Code, and shall be subject to and shall be construed
consistently with the requirements of Section 422 of the Code. The Company
shall have no liability to a Participant, or any other party, if an Option (or
any part thereof) that is intended to be an Incentive Stock Option is not an
Incentive Stock Option or for any action taken by the Board, including without
limitation the conversion of an Incentive Stock Option to a Nonstatutory Stock
Option.

 

 

(c)                                  Exercise Price. 
The Board shall establish the exercise price of each Option and specify
such exercise price in the applicable option agreement. The exercise price
shall be not less than 100% of the Fair Market Value (as defined below) on the
date the Option is granted; provided that if the Board approves the grant of an
Option with an exercise price to be determined on a future date, the exercise
price shall be not less than 100% of the Fair Market Value on such future date.

 

(d)                                 Duration of Options. 
Each Option shall be exercisable at such times and subject to such terms
and conditions as the Board may specify in the applicable option agreement,
provided, however, that no Option will be granted for a term in excess of
10 years.

 

(e)                                  Exercise of Option. 
Options may be exercised by delivery to the Company of a written notice
of exercise signed by the proper person or by any other form of notice
(including electronic notice) approved by the Board, together with payment in
full as specified in Section 5(f) for the number of shares for which
the Option is exercised. Shares of Common Stock subject to the Option will be
delivered by the Company as soon as practicable following exercise.

 

(f)                                    Payment Upon Exercise. 
Common Stock purchased upon the exercise of an Option granted under the
Plan shall be paid for as follows:

 

(1)                                  in cash or by check, payable to the order
of the Company;

 

(2)                                  except as may otherwise be provided in
the applicable option agreement, by (i) delivery of an irrevocable and
unconditional undertaking by a creditworthy broker to deliver promptly to the
Company sufficient funds to pay the exercise price and any required tax
withholding or (ii) delivery by the Participant to the Company of a copy
of irrevocable and unconditional instructions to a creditworthy broker to
deliver promptly to the Company cash or a check sufficient to pay the exercise
price and any required tax withholding;

 

(3)                                  to the extent provided for in the
applicable option agreement or approved by the Board, in its sole discretion,
by delivery (either by actual delivery or attestation) of shares of Common
Stock owned by the Participant valued at their fair market value as determined
by (or in a manner approved by) the Board (“Fair Market Value”), provided (i) such
method of payment is then permitted under applicable law, (ii) such Common
Stock, if acquired directly from the Company, was owned by the Participant for
such minimum period of time, if any, as may be established by the Board in its
discretion and (iii) such Common Stock is not subject to any repurchase,
forfeiture, unfulfilled vesting or other similar requirements;

 

(4)                                  to the extent permitted by applicable law
and provided for in the applicable option agreement or approved by the Board,
in its sole discretion, by (i) delivery of a promissory note of the
Participant to the Company on terms determined by the Board or (ii) payment
of such other lawful consideration as the Board may determine; or

 

(5)                                  by any combination of the above permitted
forms of payment.

 

(g)                                 Fair Market Value. 
Fair Market Value of a share of Common Stock for purposes of the Plan
will be determined as follows:

 

 

(1)                                  if the Common Stock trades on a national
securities exchange, the closing sale price (for the primary trading session)
on the date of grant; or

 

(2)                                  if the Common Stock does not trade on any
such exchange, the average of the closing bid and asked prices as reported by
the National Association of Securities Dealers, Inc. Automated Quotation
System (“Nasdaq”) for the date of grant; or

 

(3)                                  if no such closing sale price information
is available, the average of bids and asked prices that Nasdaq reports for the
date of grant; or

 

(4)                                  if there are no such closing bid and
asked prices, the average of the bid and asked prices as reported by any other
commercial service for the date of grant.

 

For any date that is not a trading day, the Fair
Market Value of a share of Common Stock for such date will be determined by
using the closing sale price or average of the bid and asked prices, as
appropriate, for the immediately following trading day and with the timing in
the formulas above adjusted accordingly. The Board can substitute a particular
time of day or other measure of “closing sale price” or “bid and asked prices”
if appropriate because of exchange or market procedures or can, in its sole
discretion, use weighted averages either on a daily basis or such longer period
as complies with Code Section 409A.

 

(h)                                 Limitation on
Repricing.  Unless such action is approved by the Company’s
stockholders: (1) no outstanding Option granted under the Plan may be
amended to provide an exercise price per share that is lower than the
then-current exercise price per share of such outstanding Option (other than
adjustments pursuant to Section 9) and (2) the Board may not cancel
any outstanding option (whether or not granted under the Plan) and grant in substitution
therefore new Awards under the Plan covering the same or a different number of
share of Common Stock and having an exercise price per share lower than the
then-current exercise price per share of the cancelled option.

 

6.                                       Stock Appreciation Rights.

 

(a)                                  General. 
The Board may grant Awards consisting of a SAR entitling the holder,
upon exercise, to receive an amount in Common Stock or cash or a combination
thereof (such form to be determined by the Board) determined in whole or in
part by reference to appreciation, from and after the date of grant, in the
Fair Market Value of a share of Common Stock over the exercise price
established pursuant to Section 6(c). The date as of which such
appreciation or other measure is determined shall be the exercise date.

 

(b)                                 Grants. 
SARs may be granted in tandem with, or independently of, Options granted
under the Plan.

 

(1)                                  Tandem Awards. 
When SARs are expressly granted in tandem with Options, (i) the SAR
will be exercisable only at such time or times, and to the extent, that the
related Option is exercisable (except to the extent designated by the Board in
connection with a Reorganization Event) and will be exercisable in accordance
with the procedure required for exercise of the related Option; (ii) the
SAR will terminate and no longer be exercisable upon the termination or
exercise of the related Option, except to the extent designated by the Board in

 

 

connection with a Reorganization Event and except that
a SAR granted with respect to less than the full number of shares covered by an
Option will not be reduced until the number of shares as to which the related
Option has been exercised or has terminated exceeds the number of shares not
covered by the SAR; (iii) the Option will terminate and no longer be
exercisable upon the exercise of the related SAR; and (iv) the SAR will be
transferable only with the related Option.

 

(2)                                  Independent SARs.  A
SAR not expressly granted in tandem with an Option will become exercisable at
such time or times, and on such conditions, as the Board may specify in the SAR
Award.

 

(c)                                  Exercise Price. 
The Board shall establish the exercise price of each SAR and specify it
in the applicable SAR agreement. The exercise price shall not be less than 100%
of the Fair Market Value on the date the SAR is granted; provided that if the
Board approves the grant of a SAR with an exercise price to be determined on a
future date, the exercise price shall be not less than 100% of the Fair Market
Value on such future date.

 

(d)                                 Term. 
The term of a SAR shall not be more than 10 years from the date of
grant.

 

(e)                                  Exercise. 
SARs may be exercised by delivery to the Company of a written notice of
exercise signed by the proper person or by any other form of notice (including
electronic notice) approved by the Board, together with any other documents
required by the Board.

 

(f)                                    Limitation of
Repricing.  Unless such action is approved by the Company’s
stockholders: (1) no outstanding SAR granted under the Plan may be amended
to provide an exercise price per share that is lower than the then-current
exercise price per share of such outstanding SAR (other than adjustments
pursuant to Section 9) and (2) the Board may not cancel any
outstanding SAR (whether or not granted under the Plan) and grant in substitution
therefor new Awards under the Plan covering the same or a different number of
shares of Common Stock and having an exercise price per share lower than the
then-current exercise price per share of the cancelled SAR.

 

7.                                       Restricted Stock; Restricted Stock
Units.

 

(a)                                  General. 
The Board may grant Awards entitling recipients to acquire shares of
Common Stock (“Restricted Stock”), subject to the right of the Company to
repurchase all or part of such shares at their issue price or other stated or
formula price (or to require forfeiture of such shares if issued at no cost)
from the recipient in the event that conditions specified by the Board in the
applicable Award are not satisfied prior to the end of the applicable
restriction period or periods established by the Board for such Award. Instead
of granting Awards for Restricted Stock, the Board may grant Awards entitling
the recipient to receive shares of Common Stock or cash to be delivered at the
time such Award vests (“Restricted Stock Units”) (Restricted Stock and
Restricted Stock Units are each referred to herein as a “Restricted Stock Award”).

 

(b)                                 Terms and Conditions
for all Restricted Stock Awards.  The Board
shall determine the terms and conditions of a Restricted Stock Award, including
the conditions for vesting and repurchase (or forfeiture) and the issue price,
if any.

 

 

(c)                                  Additional Provisions Relating to
Restricted Stock.

 

(1)                                  Dividends. 
Participants holding shares of Restricted Stock will be entitled to all
ordinary cash dividends paid with respect to such shares, unless otherwise
provided by the Board. Unless otherwise provided by the Board, if any dividends
or distributions are paid in shares, or consist of a dividend or distribution
to holders of Common Stock other than an ordinary cash dividend, the shares,
cash or other property will be subject to the same restrictions on
transferability and forfeitability as the shares of Restricted Stock with
respect to which they were paid. Each dividend payment will be made no later
than the end of the calendar year in which the dividends are paid to
stockholders of that class of stock or, if later, the 15th day of the
third month following the date the dividends are paid to stockholders of that
class of stock.

 

(2)                                  Stock Certificates. 
The Company may require that any stock certificates issued in respect of
shares of Restricted Stock shall be deposited in escrow by the Participant,
together with a stock power endorsed in blank, with the Company (or its
designee). At the expiration of the applicable restriction periods, the Company
(or such designee) shall deliver the certificates no longer subject to such
restrictions to the Participant or if the Participant has died, to the
beneficiary designated, in a manner determined by the Board, by a Participant
to receive amounts due or exercise rights of the Participant in the event of the
Participant’s death (the “Designated Beneficiary”). In the absence of an
effective designation by a Participant, “Designated Beneficiary” shall mean the
Participant’s estate.

 

(d)                                 Additional Provisions Relating to
Restricted Stock Units.

 

(1)                                  Settlement. 
Upon the vesting of and/or lapsing of any other restrictions
(i.e., settlement) with respect to each Restricted Stock Unit, the
Participant shall be entitled to receive from the Company one share of Common
Stock or an amount of cash equal to the Fair Market Value of one share of
Common Stock, as provided in the applicable Award agreement. The Board may, in
its discretion, provide that settlement of Restricted Stock Units shall be
deferred, on a mandatory basis or at the election of the Participant.

 

(2)                                  Voting Rights.  A
Participant shall have no voting rights with respect to any Restricted Stock
Units.

 

(3)                                  Dividend Equivalents. 
To the extent provided by the Board, in its sole discretion, a grant of
Restricted Stock Units may provide Participants with the right to receive an
amount equal to any dividends or other distributions declared and paid on an
equal number of outstanding shares of Common Stock (“Dividend Equivalents”).
Dividend Equivalents may be paid currently or credited to an account for the Participants,
may be settled in cash and/or shares of Common Stock and may be subject to the
same restrictions on transfer and forfeitability as the Restricted Stock Units
with respect to which paid, as determined by the Board in its sole discretion,
subject in each case to such terms and conditions as the Board shall establish,
in each case to be set forth in the applicable Award agreement.

 

8.                                       Other Stock Unit Awards.

 

Other Awards of shares of Common Stock, and other
Awards that are valued in whole or in part by reference to, or are otherwise
based on, shares of Common Stock or other property, 

 

 

may be granted hereunder to
Participants (“Other Stock Unit Awards”), including without limitation Awards
entitling recipients to receive shares of Common Stock to be delivered in the
future. Such Other Stock Unit Awards shall also be available as a form of
payment in the settlement of other Awards granted under the Plan or as payment
in lieu of compensation to which a Participant is otherwise entitled. Other Stock
Unit Awards may be paid in shares of Common Stock or cash, as the Board shall
determine. Subject to the provisions of the Plan, the Board shall determine the
terms and conditions of each Other Stock Unit Award, including any purchase
price applicable thereto.

 

9.                                       Adjustments for Changes in Common
Stock and Certain Other Events.

 

(a)                                  Changes in
Capitalization.  In the event of any stock split, reverse
stock split, stock dividend, recapitalization, combination of shares,
reclassification of shares, spin-off or other similar change in capitalization
or event, or any dividend or distribution to holders of Common Stock other than
an ordinary cash dividend, (i) the number and class of securities
available under this Plan, (ii) the sub-limits set forth in Section 4(b),
(iii) the number and class of securities and exercise price per share of
each outstanding Option, (iv) the share- and per-share provisions and the
exercise price of each SAR, (v) the number of shares subject to and the
repurchase price per share subject to each outstanding Restricted Stock Award
and (vi) the share- and per-share-related provisions and the purchase
price, if any, of each outstanding Other Stock Unit Award, shall be equitably
adjusted by the Company (or substituted Awards may be made, if applicable) in
the manner determined by the Board. Without limiting the generality of the
foregoing, in the event the Company effects a split of the Common Stock by
means of a stock dividend and the exercise price of and the number of shares
subject to an outstanding Option are adjusted as of the date of the
distribution of the dividend (rather than as of the record date for such
dividend), then an optionee who exercises an Option between the record date and
the distribution date for such stock dividend shall be entitled to receive, on
the distribution date, the stock dividend with respect to the shares of Common
Stock acquired upon such Option exercise, notwithstanding the fact that such
shares were not outstanding as of the close of business on the record date for
such stock dividend.

 

(b)                                 Reorganization Events.

 

(1)                                  Definition.  A
“Reorganization Event” shall mean: (a) any merger or consolidation of the
Company with or into another entity as a result of which all of the Common
Stock of the Company is converted into or exchanged for the right to receive
cash, securities or other property or is cancelled, (b) any exchange of
all of the Common Stock of the Company for cash, securities or other property
pursuant to a share exchange transaction or (c) any liquidation or
dissolution of the Company.

 

(2)                                  Consequences of a
Reorganization Event on Awards Other than Restricted Stock Awards. 
In connection with a Reorganization Event, the Board may take any one or
more of the following actions as to all or any (or any portion of) outstanding
Awards other than Restricted Stock Awards on such terms as the Board
determines: (i) provide that Awards shall be assumed, or substantially
equivalent Awards shall be substituted, by the acquiring or succeeding
corporation (or an affiliate thereof), (ii) upon written notice to a
Participant, provide that the Participant’s unexercised Awards will terminate
immediately prior to the consummation of such 

 

 

Reorganization Event unless exercised by the
Participant within a specified period following the date of such notice, (iii) provide
that outstanding Awards shall become exercisable, realizable, or deliverable,
or restrictions applicable to an Award shall lapse, in whole or in part prior
to or upon such Reorganization Event, (iv) in the event of a
Reorganization Event under the terms of which holders of Common Stock will
receive upon consummation thereof a cash payment for each share surrendered in
the Reorganization Event (the “Acquisition Price”), make or provide for a cash
payment to a Participant equal to the excess, if any, of (A) the
Acquisition Price times the number of shares of Common Stock subject to the
Participant’s Awards (to the extent the exercise price does not exceed the
Acquisition Price) over (B) the aggregate exercise price of all such
outstanding Awards and any applicable tax withholdings, in exchange for the
termination of such Awards, (v) provide that, in connection with a
liquidation or dissolution of the Company, Awards shall convert into the right
to receive liquidation proceeds (if applicable, net of the exercise price
thereof and any applicable tax withholdings) and (vi) any combination of
the foregoing. In taking any of the actions permitted under this Section 9(b),
the Board shall not be obligated by the Plan to treat all Awards, all Awards
held by a Participant, or all Awards of the same type, identically.

 

For
purposes of clause (i) above, an Option shall be considered assumed
if, following consummation of the Reorganization Event, the Option confers the
right to purchase, for each share of Common Stock subject to the Option
immediately prior to the consummation of the Reorganization Event, the
consideration (whether cash, securities or other property) received as a result
of the Reorganization Event by holders of Common Stock for each share of Common
Stock held immediately prior to the consummation of the Reorganization Event
(and if holders were offered a choice of consideration, the type of
consideration chosen by the holders of a majority of the outstanding shares of
Common Stock); provided, however, that if the consideration received as a
result of the Reorganization Event is not solely common stock of the acquiring
or succeeding corporation (or an affiliate thereof), the Company may, with the
consent of the acquiring or succeeding corporation, provide for the
consideration to be received upon the exercise of Options to consist solely of
common stock of the acquiring or succeeding corporation (or an affiliate
thereof) equivalent in value (as determined by the Board) to the per share
consideration received by holders of outstanding shares of Common Stock as a
result of the Reorganization Event.

 

(3)                                  Consequences of a
Reorganization Event on Restricted Stock Awards.  Upon the
occurrence of a Reorganization Event other than a liquidation or dissolution of
the Company, the repurchase and other rights of the Company under each
outstanding Restricted Stock Award shall inure to the benefit of the Company’s
successor and shall, unless the Board determines otherwise, apply to the cash,
securities or other property which the Common Stock was converted into or
exchanged for pursuant to such Reorganization Event in the same manner and to
the same extent as they applied to the Common Stock subject to such Restricted Stock
Award. Upon the occurrence of a Reorganization Event involving the liquidation
or dissolution of the Company, except to the extent specifically provided to
the contrary in the instrument evidencing any Restricted Stock Award or any
other agreement between a Participant and the Company, all restrictions and
conditions on all Restricted Stock Awards then outstanding shall automatically
be deemed terminated or satisfied.

 

 

(c)                                  Acquisition. 
An “Acquisition” shall mean any (i) merger or consolidation in which
the Company is a constituent party or a subsidiary of the Company is a
constituent party and the Company issues shares of its capital stock pursuant
to such merger or consolidation, which results in the voting securities of the
Company outstanding immediately prior thereto representing immediately
thereafter (either by remaining outstanding or by being converted into voting
securities of the surviving or acquiring entity (the “Acquiror”)) less than a
majority of the combined voting power of the voting securities of the Company
or the Acquiror outstanding immediately after such merger or consolidation or (ii) sale,
transfer or other disposition of all or substantially all of the assets of the
Company. The effect of an Acquisition on any Award granted under the Plan shall
be specified in the agreement evidencing such Award.

 

10.                                 General Provisions Applicable to
Awards.

 

(a)                                  Transferability of
Awards.  Awards (other than vested Restricted Stock
Awards) shall not be sold, assigned, transferred, pledged or otherwise
encumbered by the person to whom they are granted, either voluntarily or by
operation of law, except by will or the laws of descent and distribution or,
other than in the case of an Incentive Stock Option, pursuant to a qualified
domestic relations order, and, during the life of the Participant, shall be
exercisable only by the Participant; provided, however, that the Board may
permit or provide in an Award for the gratuitous transfer of the Award by the
Participant to or for the benefit of any immediate family member, family trust
or other entity established for the benefit of the Participant and/or an
immediate family member thereof if, with respect to such proposed transferee,
the Company would be eligible to use a Form S-8 for the registration of
the sale of the Common Stock subject to such Award under the Securities Act of
1933, as amended; provided, further, that the Company shall not be required to
recognize any such transfer until such time as the Participant and such
permitted transferee shall, as a condition to such transfer, deliver to the
Company a written instrument in form and substance satisfactory to the Company
confirming that such transferee shall be bound by all of the terms and
conditions of the Award. References to a Participant, to the extent relevant in
the context, shall include references to authorized transferees.

 

(b)                                 Documentation. 
Each Award shall be evidenced in such form (written, electronic or
otherwise) as the Board shall determine. Each Award may contain terms and conditions
in addition to those set forth in the Plan.

 

(c)                                  Board Discretion. 
Except as otherwise provided by the Plan, each Award may be made alone
or in addition or in relation to any other Award. The terms of each Award need
not be identical, and the Board need not treat Participants uniformly.

 

(d)                                 Termination of Status. 
The Board shall determine the effect on an Award of the disability,
death, termination of employment, authorized leave of absence or other change
in the employment or other status of a Participant and the extent to which, and
the period during which, the Participant, or the Participant’s legal
representative, conservator, guardian or Designated Beneficiary, may exercise
rights under the Award.

 

(e)                                  Withholding. 
The Participant must satisfy all applicable federal, state, and local or
other income and employment tax withholding obligations before the Company will
deliver 

 

 

stock certificates or otherwise recognize ownership of
Common Stock under an Award. The Company may decide to satisfy the withholding
obligations through additional withholding on salary or wages. If the Company
elects not to or cannot withhold from other compensation, the Participant must
pay the Company the full amount, if any, required for withholding or have a
broker tender to the Company cash equal to the withholding obligations. Payment
of withholding obligations is due before the Company will issue any shares on
exercise or release from forfeiture of an Award or, if the Company so requires,
at the same time as is payment of the exercise price unless the Company
determines otherwise. If provided for in an Award or approved by the Board in
its sole discretion, a Participant may satisfy such tax obligations in whole or
in part by delivery of shares of Common Stock, including shares retained from
the Award creating the tax obligation, valued at their Fair Market Value;
provided, however, except as otherwise provided by the Board, that the total
tax withholding where stock is being used to satisfy such tax obligations cannot
exceed the Company’s minimum statutory withholding obligations (based on
minimum statutory withholding rates for federal and state tax purposes,
including payroll taxes, that are applicable to such supplemental taxable
income). Shares surrendered to satisfy tax withholding requirements cannot be
subject to any repurchase, forfeiture, unfulfilled vesting or other similar
requirements.

 

(f)                                    Amendment of Award. 
The Board may amend, modify or terminate any outstanding Award,
including but not limited to, substituting therefor another Award of the same
or a different type, changing the date of exercise or realization, and
converting an Incentive Stock Option to a Nonstatutory Stock Option, provided
either (i) that the Participant’s consent to such action shall be required
unless the Board determines that the action, taking into account any related
action, would not materially and adversely affect the Participant or (ii) that
the change is permitted under Section 9 hereof.

 

(g)                                 Conditions on Delivery
of Stock.  The Company will not be obligated to deliver
any shares of Common Stock pursuant to the Plan or to remove restrictions from
shares previously delivered under the Plan until (i) all conditions of the
Award have been met or removed to the satisfaction of the Company, (ii) in
the opinion of the Company’s counsel, all other legal matters in connection
with the issuance and delivery of such shares have been satisfied, including
any applicable securities laws and any applicable stock exchange or stock
market rules and regulations, and (iii) the Participant has executed
and delivered to the Company such representations or agreements as the Company
may consider appropriate to satisfy the requirements of any applicable laws, rules or
regulations.

 

(h)                                 Acceleration. 
The Board may at any time provide that any Award shall become
immediately exercisable in full or in part, free of some or all restrictions or
conditions, or otherwise realizable in full or in part, as the case may be.

 

(i)                                     Performance Awards.

 

(1)                                  Grants. 
Restricted Stock Awards and Other Stock Unit Awards under the Plan may
be made subject to the achievement of performance goals pursuant to this Section 10(i) (“Performance
Awards”), subject to the limit in Section 4(b)(1) on shares covered
by such grants.

 

 

(2)                                  Committee. 
Grants of Performance Awards to any Covered Employee intended to qualify
as “performance-based compensation” under Section 162(m) (“Performance-Based
Compensation”) shall be made only by a Committee (or subcommittee of a
Committee) comprised solely of two or more directors eligible to serve on a
committee making Awards qualifying as “performance-based compensation” under Section 162(m).
In the case of such Awards granted to Covered Employees, references to the
Board or to a Committee shall be deemed to be references to such Committee or
subcommittee. “Covered Employee” shall mean any person who is a “covered
employee” under Section 162(m)(3) of the Code.

 

(3)                                  Performance Measures. 
For any Award that is intended to qualify as Performance-Based
Compensation, the Committee shall specify that the degree of granting, vesting
and/or payout shall be subject to the achievement of one or more objective
performance measures established by the Committee, which shall be based on the
relative or absolute attainment of specified levels of one or any combination
of the following: (a) net income, (b) earnings before or after
discontinued operations, interest, taxes, depreciation and/or amortization, (c) operating
profit before or after discontinued operations and/or taxes, (d) sales, (e) sales
growth, (f) earnings growth, (g) cash flow or cash position, (h) gross
margins, (i) stock price, (j) market share, (k) return on sales,
assets, equity or investment, (l) improvement of financial ratings, (m) achievement
of balance sheet or income statement objectives or (n) total stockholder
return, and may be absolute in their terms or measured against or in
relationship to other companies comparably, similarly or otherwise situated.
The Committee may specify that such performance measures shall be adjusted to
exclude any one or more of (i) extraordinary items, (ii) gains or
losses on the dispositions of discontinued operations, (iii) the
cumulative effects of changes in accounting principles, (iv) the writedown
of any asset, and (v) charges for restructuring and rationalization
programs. Such performance measures: (i) may vary by Participant and may
be different for different Awards; (ii) may be particular to a Participant
or the department, branch, line of business, subsidiary or other unit in which
the Participant works and may cover such period as may be specified by the
Committee; and (iii) shall be set by the Committee within the time period
prescribed by, and shall otherwise comply with the requirements of, Section 162(m).
Awards that are not intended to qualify as Performance-Based Compensation may
be based on these or such other performance measures as the Board may
determine.

 

(4)                                  Adjustments. 
Notwithstanding any provision of the Plan, with respect to any Performance
Award that is intended to qualify as Performance-Based Compensation, the
Committee may adjust downwards, but not upwards, the cash or number of Shares
payable pursuant to such Award, and the Committee may not waive the achievement
of the applicable performance measures except in the case of the death or
disability of the Participant or a change in control of the Company.

 

(5)                                  Other. 
The Committee shall have the power to impose such other restrictions on
Performance Awards as it may deem necessary or appropriate to ensure that such
Awards satisfy all requirements for Performance-Based Compensation.

 

 

11.                                 Miscellaneous.

 

(a)                                  No Right To Employment
or Other Status.  No person shall have any claim or right to be
granted an Award, and the grant of an Award shall not be construed as giving a
Participant the right to continued employment or any other relationship with
the Company. The Company expressly reserves the right at any time to dismiss or
otherwise terminate its relationship with a Participant free from any liability
or claim under the Plan, except as expressly provided in the applicable Award.

 

(b)                                 No Rights As
Stockholder.  Subject to the provisions of the applicable
Award, no Participant or Designated Beneficiary shall have any rights as a stockholder
with respect to any shares of Common Stock to be distributed with respect to an
Award until becoming the record holder of such shares.

 

(c)                                  Effective Date and Term
of Plan.  The Plan shall become effective on the date
the Plan is approved by the Company’s stockholders (the “Effective Date”). No
Awards shall be granted under the Plan after the completion of 10 years
from the Effective Date, but Awards previously granted may extend beyond that
date.

 

(d)                                 Amendment of Plan. 
The Board may amend, suspend or terminate the Plan or any portion
thereof at any time provided that (i) to the extent required by Section 162(m),
no Award granted to a Participant that is intended to comply with Section 162(m) after
the date of such amendment shall become exercisable, realizable or vested, as
applicable to such Award, unless and until such amendment shall have been
approved by the Company’s stockholders if required by Section 162(m) (including
the vote required under Section 162(m)); (ii) no amendment that would
require stockholder approval under the rules of The NASDAQ Stock Market (“NASDAQ”)
may be made effective unless and until such amendment shall have been approved
by the Company’s stockholders; and (iii) if the NASDAQ amends its
corporate governance rules so that such rules no longer require
stockholder approval of “material amendments” to equity compensation plans,
then, from and after the effective date of such amendment to the NASDAQ rules,
no amendment to the Plan (A) materially increasing the number of shares
authorized under the Plan (other than pursuant to Section 9), (B) expanding
the types of Awards that may be granted under the Plan, or (C) materially
expanding the class of participants eligible to participate in the Plan shall
be effective unless stockholder approval is obtained. In addition, if at any
time the approval of the Company’s stockholders is required as to any other
modification or amendment under Section 422 of the Code or any successor
provision with respect to Incentive Stock Options, the Board may not effect
such modification or amendment without such approval. Unless otherwise
specified in the amendment, any amendment to the Plan adopted in accordance
with this Section 11(d) shall apply to, and be binding on the holders
of, all Awards outstanding under the Plan at the time the amendment is adopted,
provided the Board determines that such amendment does not materially and
adversely affect the rights of Participants under the Plan. No Award shall be
made that is conditioned upon stockholder approval of any amendment to the
Plan.

 

(e)                                  Provisions for Foreign
Participants.  The Board may modify Awards or Options
granted to Participants who are foreign nationals or employed outside the
United States or establish subplans or procedures under the Plan to recognize
differences in laws, rules, 

 

 

regulations or customs of such foreign jurisdictions
with respect to tax, securities, currency, employee benefit or other matters.

 

(f)                                    Compliance With Code Section 409A. 
No Award shall provide for deferral of compensation that does not comply
with Section 409A of the Code, unless the Board, at the time of grant,
specifically provides that the Award is not intended to comply with Section 409A
of the Code. The Company shall have no liability to a Participant, or any other
party, if an Award that is intended to be exempt from, or compliant with, Section 409A
is not so exempt or compliant or for any action taken by the Board.

 

(g)                                 Governing Law. 
The provisions of the Plan and all Awards made hereunder shall be
governed by and interpreted in accordance with the laws of the State of
Delaware, excluding choice-of-law principles of the law of such state that
would require the application of the laws of a jurisdiction other than such
state.

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