Document:

Exhibit 10.1

    
      

    

     

    
      
        	 	
                Published
                  CUSIP Number:

              	 	 

      

    

     

    

    
      
        

      

    

    

    $375,000,000

    

    CREDIT
      AGREEMENT

    

    among

    

    ORTHOFIX
      HOLDINGS, INC.,

    as
      Borrower,

    

    and

    

    ORTHOFIX
      INTERNATIONAL N.V., 

    COLGATE
      MEDICAL LIMITED,

    VICTORY
      MEDICAL LIMITED,

    SWIFTSURE
      MEDICAL LIMITED,

    ORTHOFIX
      UK LTD,

    AND
      THE
      DOMESTIC SUBSIDIARIES OF ORTHOFIX INTERNATIONAL N.V.,

    as
      Guarantors,

    

    THE
      LENDERS PARTIES HERETO,

    

    WACHOVIA
      BANK, NATIONAL ASSOCIATION,

    as
      Administrative Agent

    

    and

    

    CITICORP
      NORTH AMERICA, INC.,

    as
      Syndication Agent

     

     

    Dated
      as
      of September 22, 2006

     

    

    WACHOVIA
      CAPITAL MARKETS, LLC,

    

    and

    

    CITIGROUP
      GLOBAL MARKETS INC.,

    as
      Joint
      Lead Arrangers and Joint Bookrunners

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    TABLE
      OF CONTENTS

    

    
      	 	 	
              Page

            
	 	 	 
	
              ARTICLE
                I DEFINITIONS

            	
              1

            
	
              Section
                1.1

            	
              Defined
                Terms.

            	
              1

            
	
              Section
                1.2

            	
              Other
                Definitional Provisions.

            	
              34

            
	
              Section
                1.3

            	
              Accounting
                Terms.

            	
              34

            
	 	 
	
              ARTICLE
                II THE LOANS; AMOUNT AND TERMS

            	
              35

            
	
              Section
                2.1

            	
              Revolving
                Loans; Revolver Increase.

            	
              35

            
	
              Section
                2.2

            	
              Term
                Loan Facility; Incremental Term Loan.

            	
              38

            
	
              Section
                2.3

            	
              Letter
                of Credit Subfacility.

            	
              41

            
	
              Section
                2.4

            	
              Swingline
                Loan Subfacility.

            	
              45

            
	
              Section
                2.5

            	
              Fees.

            	
              46

            
	
              Section
                2.6

            	
              Commitment
                Reductions.

            	
              47

            
	
              Section
                2.7

            	
              Prepayments.

            	
              48

            
	
              Section
                2.8

            	
              Lending
                Offices.

            	
              50

            
	
              Section
                2.9

            	
              Default
                Rate and Payment Dates.

            	
              50

            
	
              Section
                2.10

            	
              Conversion
                Options.

            	
              51

            
	
              Section
                2.11

            	
              Computation
                of Interest and Fees.

            	
              51

            
	
              Section
                2.12

            	
              Pro
                Rata Treatment and Payments.

            	
              52

            
	
              Section
                2.13

            	
              Non-Receipt
                of Funds by the Administrative Agent.

            	
              54

            
	
              Section
                2.14

            	
              Inability
                to Determine Interest Rate.

            	
              55

            
	
              Section
                2.15

            	
              Illegality.

            	
              56

            
	
              Section
                2.16

            	
              Requirements
                of Law.

            	
              56

            
	
              Section
                2.17

            	
              Indemnity.

            	
              58

            
	
              Section
                2.18

            	
              Taxes.

            	
              59

            
	
              Section
                2.19

            	
              Indemnification;
                Nature of Issuing Lender’s Duties.

            	
              61

            
	 	 
	
              ARTICLE
                III REPRESENTATIONS AND WARRANTIES

            	
              62

            
	
              Section
                3.1

            	
              Financial
                Condition.

            	
              62

            
	
              Section
                3.2

            	
              No
                Change.

            	
              63

            
	
              Section
                3.3

            	
              Corporate
                Existence; Compliance with Law.

            	
              63

            
	
              Section
                3.4

            	
              Corporate
                Power; Authorization; Enforceable Obligations.

            	
              65

            
	
              Section
                3.5

            	
              Status
                Under Certain Statutes.

            	
              65

            
	
              Section
                3.6

            	
              Margin
                Regulations.

            	
              65

            
	
              Section
                3.7

            	
              No
                Legal Bar; No Default.

            	
              65

            
	
              Section
                3.8

            	
              No
                Material Litigation.

            	
              66

            
	
              Section
                3.9

            	
              ERISA.

            	
              66

            
	
              Section
                3.10

            	
              Environmental
                Matters.

            	
              67

            
	
              Section
                3.11

            	
              Use
                of Proceeds.

            	
              68

            
	
              Section
                3.12

            	
              Subsidiaries.

            	
              68

            
	
              Section
                3.13

            	
              Ownership.

            	
              68

            
	
              Section
                3.14

            	
              Indebtedness.

            	
              69

            
	
              Section
                3.15

            	
              Taxes.

            	
              69

            
	
              Section
                3.16

            	
              Intellectual
                Property.

            	
              69

            
	
              Section
                3.17

            	
              Solvency.

            	
              70

            

    

     

    
      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

    

    

    
      	
              Section
                3.18

            	
              Investments.

            	
              70

            
	
              Section
                3.19

            	
              Location
                of Collateral.

            	
              70

            
	
              Section
                3.20

            	
              No
                Burdensome Restrictions.

            	
              70

            
	
              Section
                3.21

            	
              Labor
                Matters.

            	
              70

            
	
              Section
                3.22

            	
              Security
                Documents.

            	
              70

            
	
              Section
                3.23

            	
              Accuracy
                and Completeness of Information.

            	
              71

            
	
              Section
                3.24

            	
              Fraud
                and Abuse.

            	
              71

            
	
              Section
                3.25

            	
              Licensing
                and Accreditation.

            	
              72

            
	
              Section
                3.26

            	
              Other
                Regulatory Protection.

            	
              72

            
	
              Section
                3.27

            	
              Reimbursement
                from Third Party Payors.

            	
              72

            
	
              Section
                3.28

            	
              Other
                Agreements.

            	
              73

            
	
              Section
                3.29

            	
              Material
                Contracts.

            	
              73

            
	
              Section
                3.30

            	
              Insurance.

            	
              73

            
	
              Section
                3.31

            	
              Classification
                as Senior Indebtedness.

            	
              73

            
	
              Section
                3.32

            	
              Tax
                Shelter Regulations.

            	
              73

            
	
              Section
                3.33

            	
              Regulation
                H.

            	
              74

            
	
              Section
                3.34

            	
              Anti-Terrorism
                Laws.

            	
              74

            
	
              Section
                3.35

            	
              Compliance
                with OFAC Rules and Regulations.

            	
              74

            
	
              Section
                3.36

            	
              Compliance
                with FCPA.

            	
              74

            
	 	 
	
              ARTICLE
                IV CONDITIONS PRECEDENT

            	
              75

            
	
              Section
                4.1

            	
              Conditions
                to Closing Date and Initial Extensions of Credit.

            	
              75

            
	
              Section
                4.2

            	
              Conditions
                to All Extensions of Credit.

            	
              80

            
	 	 
	
              ARTICLE
                V AFFIRMATIVE COVENANTS

            	
              81

            
	
              Section
                5.1

            	
              Financial
                Statements.

            	
              81

            
	
              Section
                5.2

            	
              Certificates;
                Other Information.

            	
              82

            
	
              Section
                5.3

            	
              Payment
                of Obligations.

            	
              83

            
	
              Section
                5.4

            	
              Conduct
                of Business and Maintenance of Existence.

            	
              84

            
	
              Section
                5.5

            	
              Maintenance
                of Property; Insurance.

            	
              84

            
	
              Section
                5.6

            	
              Inspection
                of Property; Books and Records; Discussions.

            	
              85

            
	
              Section
                5.7

            	
              Notices.

            	
              85

            
	
              Section
                5.8

            	
              Environmental
                Laws.

            	
              86

            
	
              Section
                5.9

            	
              Financial
                Covenants.

            	
              87

            
	
              Section
                5.10

            	
              Additional
                Subsidiary Guarantors.

            	
              88

            
	
              Section
                5.11

            	
              Compliance
                with Law.

            	
              88

            
	
              Section
                5.12

            	
              Pledged
                Assets.

            	
              89

            
	
              Section
                5.13

            	
              Limitations
                on Colgate and Victory.

            	
              90

            
	
              Section
                5.14

            	
              Further
                Assurances; Post-Closing Covenant.

            	
              90

            
	 	 
	
              ARTICLE
                VI NEGATIVE COVENANTS

            	
              93

            
	
              Section
                6.1

            	
              Indebtedness.

            	
              93

            
	
              Section
                6.2

            	
              Liens.

            	
              95

            
	
              Section
                6.3

            	
              Nature
                of Business.

            	
              95

            
	
              Section
                6.4

            	
              Consolidation,
                Merger, Sale or Purchase of Assets, etc.

            	
              95

            
	
              Section
                6.5

            	
              Advances,
                Investments and Loans.

            	
              97

            
	
              Section
                6.6

            	
              Transactions
                with Affiliates.

            	
              97

            
	
              Section
                6.7

            	
              Ownership
                of Subsidiaries; Restrictions.

            	
              97

            

    

     

    
      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

    

    

    
      	
              Section
                6.8

            	
              Fiscal
                Year; Organizational Documents; Material Contracts; Subordinated
                Indebtedness Documents.

            	
              98

            
	
              Section
                6.9

            	
              Limitation
                on Restricted Actions.

            	
              98

            
	
              Section
                6.10

            	
              Restricted
                Payments.

            	
              99

            
	
              Section
                6.11

            	
              Sale
                Leasebacks.

            	
              100

            
	
              Section
                6.12

            	
              No
                Further Negative Pledges.

            	
              100

            
	
              Section
                6.13

            	
              Accounts.

            	
              100

            
	 	 
	
              ARTICLE
                VII EVENTS OF DEFAULT

            	
              101

            
	
              Section
                7.1

            	
              Events
                of Default.

            	
              101

            
	
              Section
                7.2

            	
              Acceleration;
                Remedies.

            	
              104

            
	 	 
	
              ARTICLE
                VIII THE AGENT

            	
              104

            
	
              Section
                8.1

            	
              Appointment.

            	
              104

            
	
              Section
                8.2

            	
              Delegation
                of Duties.

            	
              105

            
	
              Section
                8.3

            	
              Exculpatory
                Provisions.

            	
              105

            
	
              Section
                8.4

            	
              Reliance
                by Administrative Agent.

            	
              105

            
	
              Section
                8.5

            	
              Notice
                of Default.

            	
              106

            
	
              Section
                8.6

            	
              Non-Reliance
                on Administrative Agent and Other Lenders.

            	
              106

            
	
              Section
                8.7

            	
              Indemnification.

            	
              107

            
	
              Section
                8.8

            	
              Administrative
                Agent in Its Individual Capacity.

            	
              107

            
	
              Section
                8.9

            	
              Successor
                Administrative Agent.

            	
              107

            
	
              Section
                8.10

            	
              Other
                Agents.

            	
              108

            
	
              Section
                8.11

            	
              Releases.

            	
              108

            
	 	 
	
              ARTICLE
                IX MISCELLANEOUS

            	
              109

            
	
              Section
                9.1

            	
              Amendments,
                Waivers and Release of Collateral.

            	
              109

            
	
              Section
                9.2

            	
              Notices.

            	
              111

            
	
              Section
                9.3

            	
              No
                Waiver; Cumulative Remedies.

            	
              112

            
	
              Section
                9.4

            	
              Survival
                of Representations and Warranties.

            	
              112

            
	
              Section
                9.5

            	
              Payment
                of Expenses and Taxes.

            	
              113

            
	
              Section
                9.6

            	
              Successors
                and Assigns; Participations; Purchasing Lenders.

            	
              114

            
	
              Section
                9.7

            	
              Adjustments;
                Set-off.

            	
              117

            
	
              Section
                9.8

            	
              Table
                of Contents and Section Headings.

            	
              119

            
	
              Section
                9.9

            	
              Counterparts.

            	
              119

            
	
              Section
                9.10

            	
              Effectiveness.

            	
              119

            
	
              Section
                9.11

            	
              Severability.

            	
              119

            
	
              Section
                9.12

            	
              Integration.

            	
              119

            
	
              Section
                9.13

            	
              Governing
                Law.

            	
              119

            
	
              Section
                9.14

            	
              Consent
                to Jurisdiction and Service of Process.

            	
              120

            
	
              Section
                9.15

            	
              Confidentiality.

            	
              120

            
	
              Section
                9.16

            	
              Acknowledgments.

            	
              121

            
	
              Section
                9.17

            	
              Waivers
                of Jury Trial.

            	
              121

            
	
              Section
                9.18

            	
              Patriot
                Act Notice.

            	
              122

            
	
              Section
                9.19

            	
              Resolution
                of Drafting Ambiguities.

            	
              122

            
	
              Section
                9.20

            	
              Judgment
                Currency; Payments in Dollars.

            	
              122

            
	
              Section
                9.21

            	
              Arbitration.

            	
              122

            

    

     

    
      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

    

    

    
      	
              ARTICLE
                X GUARANTY

            	
              124

            
	
              Section
                10.1

            	
              The
                Guaranty.

            	
              124

            
	
              Section
                10.2

            	
              Bankruptcy.

            	
              125

            
	
              Section
                10.3

            	
              Nature
                of Liability.

            	
              125

            
	
              Section
                10.4

            	
              Independent
                Obligation.

            	
              125

            
	
              Section
                10.5

            	
              Authorization.

            	
              126

            
	
              Section
                10.6

            	
              Reliance.

            	
              126

            
	
              Section
                10.7

            	
              Waiver.

            	
              126

            
	
              Section
                10.8

            	
              Limitation
                on Enforcement.

            	
              127

            
	
              Section
                10.9

            	
              Confirmation
                of Payment.

            	
              128

            

    

     

    
      
        
          
          

        

        
          iv

          
            

          

        

        
          
          

        

      

    

    

    Schedules

    

    
      	
              Schedule
                1.1-1

            	
              Account
                Designation Letter

            
	
              Schedule
                1.1-3

            	
              Permitted
                Liens

            
	
              Schedule
                2.1(b)(i)

            	
              Form
                of Notice of Borrowing

            
	
              Schedule
                2.1(e)

            	
              Form
                of Revolving Note

            
	
              Schedule
                2.2(d)

            	
              Form
                of Term Note

            
	
              Schedule
                2.4(d)

            	
              Form
                of Swingline Note

            
	
              Schedule
                2.10

            	
              Form
                of Notice of Conversion/Extension

            
	
              Schedule
                2.18

            	
              Form
                of Tax Exempt Certificate

            
	
              Schedule
                3.3

            	
              Qui
                Tam Actions

            
	
              Schedule
                3.8

            	
              Litigation

            
	
              Schedule
                3.12

            	
              Subsidiaries

            
	
              Schedule
                3.16

            	
              Intellectual
                Property

            
	
              Schedule
                3.19(a)

            	
              Location
                of Real Property

            
	
              Schedule
                3.19(b)

            	
              Location
                of Collateral

            
	
              Schedule
                3.19(c)

            	
              Chief
                Executive Offices

            
	
              Schedule
                3.19(d)

            	
              Mortgaged
                Properties

            
	
              Schedule
                3.21

            	
              Labor
                Matters

            
	
              Schedule
                3.29

            	
              Material
                Contracts

            
	
              Schedule
                3.30

            	
              Insurance

            
	
              Schedule
                4.1-1

            	
              Form
                of Secretary’s Certificate

            
	
              Schedule
                4.1-2

            	
              Form
                of Solvency Certificate

            
	
              Schedule
                4.1-3

            	
              Form
                of Lender Consent

            
	
              Schedule
                5.10

            	
              Form
                of Joinder Agreement

            
	
              Schedule
                6.1(b)

            	
              Indebtedness

            
	
              Schedule
                6.4(a)

            	
              Permitted
                Asset Sales

            
	
              Schedule
                6.5

            	
              Investments

            
	
              Schedule
                6.13

            	
              Accounts

            
	
              Schedule
                9.6(c)

            	
              Form
                of Assignment Agreement

            

    

     

    
      
        
          
          

        

        
          v

          
            

          

        

        
          
          

        

      

    

    

    CREDIT
      AGREEMENT,
      dated
      as of September 22, 2006, among ORTHOFIX
      HOLDINGS, INC.,
      a
      Delaware corporation (the “Borrower”),
      ORTHOFIX
      INTERNATIONAL N.V.,
      a
      Netherlands Antilles corporation (the “Company”),
      COLGATE
      MEDICAL LIMITED,
      a
      company formed under the laws of England and Wales (“Colgate”),
      VICTORY
      MEDICAL LIMITED,
      a
      company formed under the laws of England and Wales (“Victory”),
      SWIFTSURE
      MEDICAL LIMITED,
      a
      company formed under the laws of England and Wales (“Swiftsure”),
      ORTHOFIX
      UK LTD,
      a
      company formed under the laws of England and Wales (“UK
      Ltd”),
      those
      Domestic Subsidiaries of the Company identified as a “Guarantor” on the
      signature pages hereto and such other Domestic Subsidiaries of the Company
      as
      may from time to time become a party hereto (together with Swiftsure and UK
      Ltd,
      each a “Subsidiary
      Guarantor”
and,
      together with the Company, Colgate and Victory, the “Guarantors”),
      the
      several banks and other financial institutions as may from time to time become
      parties to this Agreement (collectively, the “Lenders”;
      and
      individually, a “Lender”),
      and
WACHOVIA
      BANK, NATIONAL ASSOCIATION,
      a
      national banking association, as administrative agent for the Lenders hereunder
      (in such capacity, the “Administrative
      Agent”).

    

    W I T N E S S E T H:

    

    WHEREAS,
      the
      Borrower has requested that the Lenders make loans and other financial
      accommodations to the Borrower in the amount of up to $375,000,000, as more
      particularly described herein; and

    

    WHEREAS,
      the
      Lenders have agreed to make such loans and other financial accommodations to
      the
      Borrower on the terms and conditions contained herein. 

    

    NOW,
      THEREFORE,
      in
      consideration of the premises and the mutual covenants contained herein, the
      parties hereto hereby agree as follows:

     

    ARTICLE
      I

    

    DEFINITIONS

    

    
      	 	
              Section
                1.1

            	
              Defined
                Terms.

            

    

    

    As
      used
      in this Agreement, terms defined in the first paragraph of this Agreement have
      the meanings therein indicated, and the following terms have the following
      meanings:

    

    “Account
      Designation Letter”
shall
      mean the Account Designation Letter dated the Closing Date from the Borrower
      to
      the Administrative Agent substantially in the form attached hereto as
Schedule
      1.1-1.

    

    “Acquired
      Company”
shall
      mean Blackstone Medical, Inc., a Massachusetts corporation.

    

    
      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

    

    

    “Acquisition”
shall
      mean the merger of New Era Medical Corp., a Massachusetts corporation and a
      direct wholly-owned Subsidiary of the Borrower, with and into the Acquired
      Company, with the Acquired Company being the surviving company, pursuant to
      the
      Acquisition Documents.

    

    “Acquisition
      Documents”
shall
      mean (a) the Agreement and Plan of Merger, dated as of August 4, 2006, among
      the
      Company, the Borrower, New Era Medical Corp, a Massachusetts corporation and
      a
      direct wholly-owned Subsidiary of the Borrower, the Acquired Company, the
      principal shareholders of the Acquired Company and William G. Lyons, III, as
      equityholders’ representative and (b) all other agreements and documents
      executed in connection with the Acquisition, each as amended or modified prior
      to the Closing Date.

    

    “Additional
      Credit Party”
shall
      mean each Person that becomes a Guarantor by execution of a Joinder Agreement
      in
      accordance with Section 5.10.

    

    “Additional
      Revolving Loan”
shall
      have the meaning set forth in Section 2.1.

    

    “Additional
      Term Loan”
shall
      have the meaning set forth in Section 2.2.

    

    “Administrative
      Agent”
shall
      have the meaning set forth in the first paragraph of this Agreement and any
      successors in such capacity.

    

    “Administrative
      Details Form”
shall
      mean, with respect to any Lender, a document containing such Lender’s contact
      information for purposes of notices provided under this Agreement and account
      details for purposes of payments made to such Lender under this
      Agreement.

    

    “Affiliate”
shall
      mean as to any Person, any other Person which, directly or indirectly, is in
      control of, is controlled by, or is under common control with, such Person.
      For
      purposes of this definition, a Person shall be deemed to be “controlled by” a
      Person if such Person possesses, directly or indirectly, power either (a) to
      vote 10% or more of the securities having ordinary voting power for the election
      of directors of such Person or (b) to direct or cause the direction of the
      management and policies of such Person whether by contract or
      otherwise.

    

    “Agent’s
      Fee Letter”
shall
      mean the letter agreement dated July 27, 2006 addressed to the Borrower from
      Wachovia and WCM, as amended, modified, restated or supplemented from time
      to
      time in accordance with its terms.

    

    “Agents”
shall
      mean a collective reference to Wachovia and Citigroup North America, Inc.

    

    “Agreement”
or
      “Credit
      Agreement”
shall
      mean this Credit Agreement, as amended, restated, modified or supplemented
      from
      time to time in accordance with its terms.

    

    
      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

    

    “Alternate
      Base Rate”
shall
      mean, for any day, a rate per annum equal to the greater of (a) the Prime Rate
      in effect on such day and (b) the Federal Funds Effective Rate in effect on
      such
      day plus 1/2 of 1%. For purposes hereof: “Prime
      Rate”
shall
      mean, at any time, the rate of interest per annum publicly announced from time
      to time by Wachovia at its principal office in Charlotte, North Carolina as
      its
      prime rate. Each change in the Prime Rate shall be effective as of the opening
      of business on the day such change in the Prime Rate occurs. The parties hereto
      acknowledge that the rate announced publicly by Wachovia as its Prime Rate
      is an
      index or base rate and shall not necessarily be its lowest or best rate charged
      to its customers or other banks; and “Federal
      Funds Effective Rate”
shall
      mean, for any day, the weighted average of the rates on overnight federal funds
      transactions with members of the Federal Reserve System arranged by federal
      funds brokers, as published on the next succeeding Business Day by the Federal
      Reserve Bank of New York, or, if such rate is not so published on the next
      succeeding Business Day, the average of the quotations for the day of such
      transactions received by the Administrative Agent from three federal funds
      brokers of recognized standing selected by it. If for any reason the
      Administrative Agent shall have determined (which determination shall be
      conclusive in the absence of manifest error) that it is unable to ascertain
      the
      Federal Funds Effective Rate, for any reason, including the inability or failure
      of the Administrative Agent to obtain sufficient quotations in accordance with
      the terms thereof, the Alternate Base Rate shall be determined without regard
      to
      clause (b) of the first sentence of this definition, as appropriate, until
      the
      circumstances giving rise to such inability no longer exist. Any change in
      the
      Alternate Base Rate due to a change in the Prime Rate or the Federal Funds
      Effective Rate shall be effective on the opening of business on the date of
      such
      change.

    

    “Alternate
      Base Rate Loans”
shall
      mean Loans that bear interest at an interest rate based on the Alternate Base
      Rate.

    

    “Applicable
      Percentage”
shall
      mean, for any day, the rate per annum set forth below opposite the applicable
      level then in effect, it being understood that the Applicable Percentage for
      (a)
      Revolving Loans that are Alternate Base Rate Loans shall be the percentage
      set
      forth under the column “Alternate Base Rate Margin for Revolving Loans”,
      (b)
      Revolving Loans that are LIBOR Rate Loans shall be the percentage set forth
      under the column “LIBOR Rate Margin for Revolving Loans and Letter of Credit
      Fee”, (c)
      the
      Letter of Credit Fee shall be the percentage set forth under the column “LIBOR
      Rate Margin for Revolving Loans and Letter of Credit Fee”, (d)
      Term
      Loans that are Alternate Base Rate Loans shall be the percentage set forth
      under
      the column “Alternate Base Rate Margin for Term Loans”, (e)
      Term
      Loans that are LIBOR Rate Loans shall be the percentage set forth under the
      column “LIBOR Rate Margin for Term Loans”, and (f)
      the
      Commitment Fee shall be the percentage set forth under the column “Commitment
      Fee”:

    

    
      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

    

    
      	
              Level

            	
              Leverage
                Ratio

            	
              Alternate
                Base Rate Margin for Revolving Loans

            	
              LIBOR
                Rate Margin for Revolving Loans and Letter of Credit Fee

            	
              Alternate
                Base Rate Margin for Term Loans

            	
              LIBOR
                Rate Margin for Term Loans 

            	
              Commitment
                Fee

            
	
              I

            	
              ≥
                4.00 to 1.0

            	
              1.25%

            	
              2.25%

            	
              0.75%

            	
              1.75%

            	
              0.500%

            
	
              II

            	
              ≥
                3.25 to 1.0 but 

              <
                4.00 to 1.0

            	
              1.00%

            	
              2.00%

            	
              0.75%

            	
              1.75%

            	
              0.375%

            
	
              III

            	
              ≥
                2.50 to 1.0 but 

              <
                3.25 to 1.0

            	
              0.75%

            	
              1.75%

            	
              0.75%

            	
              1.75%

            	
              0.375%

            
	
              IV

            	
              ≥
                1.75 to 1.0 but 

              <
                2.50 to 1.0

            	
              0.50%

            	
              1.50%

            	
              0.75%

            	
              1.75%

            	
              0.250%

            
	
              V

            	
              <
                1.75 to 1.0

            	
              0.25%

            	
              1.25%

            	
              0.75%

            	
              1.75%

            	
              0.250%

            

    

    

    The
      Applicable Percentage shall, in each case, be determined and adjusted quarterly
      on the date five (5) Business Days after the date on which the Administrative
      Agent has received from the Borrower the financial information and
      certifications required to be delivered to the Administrative Agent and the
      Lenders in accordance with the provisions of Sections 5.1(a), (b) and
      (c) and Section 5.2(b) (each, an “Interest
      Determination Date”).
      Such
      Applicable Percentage shall be effective from such Interest Determination Date
      until the next such Interest Determination Date. The initial Applicable
      Percentages shall be based on Level II until
      the
      first Interest Determination Date occurring after the delivery of the officer’s
      compliance certificate pursuant to Section 5.2(b) for the quarter ended December
      31, 2006. If the Borrower shall fail to provide the annual and quarterly
      financial information and certifications in accordance with the provisions
      of
      Sections 5.1(a), (b) and (c) and Section 5.2(b), the Applicable Percentage
      from such Interest Determination Date shall, on the date five (5) Business
      Days
      after the date by which the Borrower was so required to provide such financial
      information and certifications to the Administrative Agent and the Lenders,
      be
      based on Level I until such time as such information and certifications are
      provided, whereupon the level shall be determined by the then current Leverage
      Ratio.

    

    “Approved
      Fund”
shall
      mean any Fund that is administered, managed or underwritten by (a)
      a
      Lender, (b)
      an
      Affiliate of a Lender or (c)
      an
      entity or an Affiliate of an entity that administers or manages a
      Lender.

    

    “Arrangers”
shall
      mean Wachovia Capital Markets, LLC and Citigroup Global Markets Inc., as joint
      lead arrangers and joint bookrunners, together with their successors and/or
      assigns.

    

    “Asset
      Disposition”
shall
      mean the disposition of any or all of the assets (including, without limitation,
      the disposition to any person that is not a Credit Party or a Subsidiary of
      Capital Stock of a Subsidiary or any ownership interest in a joint venture)
      of
      the Company or any of its Subsidiaries whether by sale, lease, transfer or
      otherwise. The term “Asset Disposition” shall not include (i) the sale, lease,
      transfer or other disposition of assets permitted by Section 6.4(a)(i), (ii),
      (iii), (iv), (v) or (vi) hereof or (ii) any Equity Issuance, including any
      equity issued upon exercise of employee stock options.

    

    
      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    

    

    “Assignment
      Agreement”
shall
      mean an Assignment Agreement entered into by a Lender and an Eligible Assignee
      (with the consent of any party whose consent is required by Section 9.6), and
      accepted by the Administrative Agent, in substantially the form of Schedule
      9.6(c)
      or any
      other form approved by the Administrative Agent.

    

    “Bank
      Products”
shall
      mean any one or more of the following types of services or facilities extended
      to any of the Credit Parties and their Subsidiaries by an Agent or an Affiliate
      thereof, to the extent not prohibited by the terms of this Agreement:
      (a)
      Automated Clearing House (ACH) transactions and other similar money transfer
      services; (b)
      cash
      management, including controlled disbursement and lockbox services;
      (c)
      establishing and maintaining deposit accounts; (d)
      credit
      cards or stored value cards; and (e)
      other
      similar or related bank products and services.

    

    “Bankruptcy
      Code”
shall
      mean the Bankruptcy Code in Title 11 of the United States Code, as amended,
      modified, succeeded or replaced from time to time.

    

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

    

    “Borrowing
      Date”
shall
      mean, in respect of any Loan, the date such Loan is made.

    

    “Business”
shall
      have the meaning set forth in Section 3.10.

    

    “Business
      Day”
shall
      mean a day other than a Saturday, Sunday or other day on which commercial banks
      in Charlotte, North Carolina or New York, New York are authorized or required
      by
      law to close; provided,
      however,
      that
      when used in connection with a rate determination, borrowing or payment in
      respect of a LIBOR Rate Loan, the term “Business Day” shall also exclude any day
      on which banks in London, England are not open for dealings in Dollar deposits
      in the London interbank market.

    

    “Capital
      Lease”
shall
      mean any lease of property, real or personal, the obligations with respect
      to
      which are required to be capitalized on a balance sheet of the lessee in
      accordance with GAAP.

    

    “Capital
      Lease Obligations”
shall
      mean the capitalized lease obligations relating to a Capital Lease determined
      in
      accordance with GAAP.

    

    “Capital
      Stock”
shall
      mean (a)
      in the
      case of a corporation, capital stock, (b)
      in the
      case of an association or business entity, any and all shares, interests,
      participations, rights or other equivalents (however designated) of capital
      stock, (c)
      in the
      case of a partnership, partnership interests (whether general or limited),
      (d)
      in the
      case of a limited liability company, membership interests and (e)
      any
      other interest or participation that confers on a Person the right to receive
      a
      share of the profits and losses of, or distributions of assets of, the issuing
      Person.

    

    
      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

    

    

    “Cash
      Equivalents”
shall
      mean (a)
      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 (“Government
      Obligations”),
      (b)
      U.S.
      dollar denominated (or foreign currency fully hedged) time deposits,
      certificates of deposit, Eurodollar time deposits and Eurodollar certificates
      of
      deposit of (i)
      any
      United States commercial bank of recognized standing having capital and surplus
      in excess of $250,000,000 or (ii)
      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 364 days from the date of
      acquisition, (c)
      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, (d)
      repurchase agreements with a bank or trust company (including a Lender) or
      a
      recognized 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, (e)
      obligations of any state of the United States or any political subdivision
      thereof for the payment of the principal and redemption price of and interest
      on
      which there shall have been irrevocably deposited Government Obligations
      maturing as to principal and interest at times and in amounts sufficient to
      provide such payment, (f)
      Investments, classified in accordance with GAAP as current assets of the
      Borrower or its Subsidiaries, in money market investment programs registered
      under the Investment Company Act of 1940, as amended, that are administered
      by
      financial institutions that have the highest rating obtainable from either
      Moody’s or S&P, and the portfolios of which are limited solely to
      Investments (i) in corporate obligations having a remaining maturity of less
      than two years, issued by corporations having outstanding comparable obligations
      that are rated in the two highest categories of Moody’s and S&P or no lower
      than the two highest long term debt ratings categories of either Moody’s or
      S&P or (ii) of the character, quality and maturity described in clauses
      (a)-(e) of this definition and (g)
      money
      market funds compliant with Rule 2a-7 of the Exchange Act which
      consist primarily of cash and cash equivalents set forth in clauses (a) through
      (f) above.

    

    “CHAMPUS”
shall
      mean the United States Department of Defense Civilian Health and Medical Program
      of the United States.

    

    “Change
      of Control”
shall
      mean the occurrence of any of the following: (a)
      any
“person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of the
      Exchange Act) becomes the “beneficial owner” (as defined in Rule l3d-3 under the
      Exchange Act) of more than 30% of then outstanding Voting Stock of the Company,
      measured by voting power rather than the number of shares; (b)
      Continuing Directors shall cease for any reason to constitute a majority of
      the
      members of the board of directors of the Company then in office, (c)
      the
      Company shall cease to own, directly or indirectly through wholly-owned
      Subsidiaries, all of the outstanding Capital Stock of the Borrower or, except
      as
      result of the dissolution of Colgate or Victory pursuant to Section
      6.4(a)(viii), Colgate or Victory, (d)
      Victory
      or any successor parent company of the Borrower resulting from the dissolution
      of Victory pursuant to Section 6.4(a)(viii) shall cease to own directly all
      of
      the outstanding Capital Stock of the Borrower
      or
      (e)
      the
      occurrence of a “Change of Control” (or any comparable term) under, and as
      defined in, the documents evidencing or governing any Subordinated
      Indebtedness.

    

    
      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

    

    

    “Closing
      Date”
shall
      mean the date of this Agreement.

    

    “CMS”
shall
      mean the Centers for Medicare and Medicaid Services and any successor
      thereto.

    

    “Code”
shall
      mean the Internal Revenue Code of 1986, as amended, modified, succeeded or
      replaced from time to time.

    

    “Colgate”
shall
      have the meaning set forth in the first paragraph of this
      Agreement.

    

    “Collateral”
shall
      mean a collective reference to the collateral that is identified in, and at
      any
      time will be covered by, the Security Documents and any other property or assets
      of a Credit Party, whether tangible or intangible and whether real or personal,
      that may from time to time secure the Credit Party Obligations.

    

    “Commitment”
shall
      mean the Revolving Commitment, the LOC Commitment, the Swingline Commitment
      and
      the Term Loan Commitment, individually or collectively, as
      appropriate.

    

    “Commitment
      Fee”
shall
      have the meaning set forth in Section 2.5(a).

    

    “Commitment
      Percentage”
shall
      mean the Revolving Commitment Percentage and/or the Term Loan Commitment
      Percentage, as appropriate.

    

    “Commitment
      Period”
shall
      mean the period from and including the Closing Date to but not including the
      Revolver Maturity Date.

    

    “Commonly
      Controlled Entity”
shall
      mean an entity, whether or not incorporated, which is under common control
      with
      the Borrower within the meaning of Section 4001(b)(1) of ERISA or is part of
      a
      group which includes the Borrower and which is treated as a single employer
      under Section 414(b) or 414(c) of the Code or, solely for purposes of Section
      412 of the Code to the extent required by such section, Section 414(m) or 414(o)
      of the Code.

    

    “Company”
shall
      have the meaning set forth in the first paragraph of this
      Agreement.

    

    “Consolidated
      Capital Expenditures”
shall
      mean, for any applicable period of computation, the aggregate amount (whether
      paid in cash or accrued as a liability) of all capital expenditures of the
      Company and its Subsidiaries on a consolidated basis for such period, as
      determined in accordance with GAAP; provided,
      however,
      Consolidated Capital Expenditures shall not include any such expenditures
      (i)
      for
      replacements and substitutions for capital assets or acquisitions of capital
      assets, to the extent made with the proceeds of insurance in accordance with
      Section 2.7(b)(ii) or (ii)
      for
      replacements and substitutions for capital assets or acquisitions of capital
      assets, to the extent made with proceeds from the sale, exchange or other
      disposition of assets as permitted under Section 2.7(b)(iv) or Section
      6.4(a)(iii).

    

    
      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

    

    

    “Consolidated
      EBITDA”
shall
      mean,
      for any
      applicable period of computation, the sum of (a)
      Consolidated Net Income for such period, but excluding therefrom all
      extraordinary items of income or loss, plus
      (b)
      to the
      extent deducted in determining Consolidated Net Income for such period, the
      sum
      of (i)
      the
      aggregate amount of depreciation and amortization charges for such period,
      plus
      (ii)
      Consolidated Interest Expense for such period, plus
      (iii)
      the
      aggregate amount of all income taxes reflected on the consolidated statements
      of
      income of the Company and its Subsidiaries for such period plus
      (iv)
      non-cash charges related to Hedging Agreements plus
      (v)
      non-cash expenses resulting from the grant of stock options to any director,
      officer or employee of any Credit Party or any Subsidiary pursuant to a written
      plan or agreement plus
      (vi)
      fees
      and expenses associated with Permitted Acquisitions to the extent such fees
      and
      expenses do not exceed $8,000,000 during the term of this Agreement plus
      (vii)
      other
      non-cash charges (excluding non-cash charges relating to accounts receivable
      and
      inventories) in an aggregate amount not to exceed $8,000,000 per year
plus
      (viii) fees
      and expenses associated with the Acquisition and the closing of this Credit
      Agreement in an aggregate amount not to exceed $12,500,000 plus
      (ix)
      certain
      one-time termination costs incurred in
      connection with the termination of the Medtronic Services Agreement in an
      aggregate amount not to exceed $6,100,000 plus
      (x)
      non-cash charges with respect to the write-off of research and development
      expenses and inventory step-ups related to the Acquisition and the purchase
      accounting treatment thereof minus
      (xi)
      non-cash gains related to Hedging Agreements;
      provided,
      however,
      notwithstanding the foregoing, for purposes of determining the portion of
      Consolidated EBITDA attributable to the Acquired Company and its Subsidiaries
      for the fiscal quarters ended December 31, 2005, March 31, 2006 and June 30,
      2006, such amounts shall be $2,300,000, $2,300,000 and $2,800,000, respectively.
      

    

    “Consolidated
      Interest Expense”
shall
      mean, for any applicable period of computation, all interest expense of the
      Company and its Subsidiaries on a consolidated basis for such period (including,
      without limitation, the interest component under Capital Leases and any
      synthetic lease, tax retention operating lease, off-balance sheet loan or
      similar off-balance sheet financing product, but excluding interest income),
      as
      determined in accordance with GAAP. 

    

    “Consolidated
      Net Income”
shall
      mean, for any applicable period of computation, net income after taxes for
      such
      period of the Company and its Subsidiaries on a consolidated basis, as
      determined in accordance with GAAP. 

    

    “Consolidated
      Working Capital”
shall
      mean, at any date, (a) the consolidated current assets of the Company and its
      Subsidiaries as of such date (excluding cash and Permitted Investments and
      current deferred tax assets) minus
      (b) the
      consolidated current liabilities of the Company and its Subsidiaries as of
      such
      date (excluding current liabilities in respect of Indebtedness and current
      deferred tax liabilities). Consolidated Working Capital at any date may be
      a
      positive or negative number. Consolidated Working Capital increases when it
      becomes more positive or less negative and decreases when it becomes less
      positive or more negative.

    

    “Continuing
      Directors”
shall
      mean, during any period of up to twenty-four (24) consecutive months commencing
      after the Closing Date, individuals who at the beginning of such twenty-four
      (24) month period were directors of the Company (together with any new director
      whose (a)
      election by the Company’s board of directors, (b)
      nomination for election by the Company’s shareholders or board of directors or
      (c)
      appointment was approved by a vote of at least two-thirds of the directors
      then
      still in office who either were directors at the beginning of such period or
      whose election, nomination for election or appointment was previously so
      approved).

    

    
      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

    

    

    “Contractual
      Obligation”
shall
      mean, as to any Person, any provision of any security issued by such Person
      or
      of any contract, agreement, instrument or undertaking to which such Person
      is a
      party or by which it or any of its property is bound.

    

    “Copyright
      Licenses”
shall
      mean any agreement, written or oral, naming the Borrower or any of its
      Subsidiaries which are Credit Parties as licensor and granting any right under
      any Copyright including, without limitation, any thereof referred to in
Schedule
      3.16.

    

    “Copyrights”
shall
      mean (a) all registered United States copyrights in all Works, now existing
      or
      hereafter created or acquired, all registrations and recordings thereof, and
      all
      applications in connection therewith (including, without limitation,
      registrations, recordings and applications in the United States Copyright
      Office), including, without limitation, any thereof referred to in Schedule
      3.16,
      and (b)
      all renewals thereof including, without limitation, any renewals referred to
      in
Schedule
      3.16.

    

    “Credit
      Documents”
shall
      mean this Agreement, each of the Notes, any Joinder Agreement, the LOC
      Documents, the Security Documents and all other agreements, documents,
      certificates and instruments delivered to the Administrative Agent or any Lender
      by any Credit Party in connection therewith (excluding, however, any Hedging
      Agreement).

    

    “Credit
      Party”
shall
      mean any of the Borrower or the Guarantors.

    

    “Credit
      Party Obligations”
shall
      mean, without duplication, (a)
      all of
      the obligations of the Credit Parties to the Lenders (including the Issuing
      Lender) and the Administrative Agent, whenever arising, under this Agreement,
      the Notes or any of the other Credit Documents (including, but not limited
      to,
      any interest accruing after the occurrence of a filing of a petition of
      bankruptcy under the Bankruptcy Code with respect to any Credit Party,
      regardless of whether such interest is an allowed claim under the Bankruptcy
      Code), and
      (b)
      all
      liabilities and obligations, whenever arising, owing from any Credit Party
      or
      any of its Subsidiaries to any Hedging Agreement Provider arising under any
      Secured Hedging Agreement permitted pursuant to
      Section 6.1(f).

    

    “Debt
      Issuance”
shall
      mean the issuance of any Indebtedness for borrowed money by the Company or
      any
      of its Subsidiaries (excluding, for purposes hereof, any Equity Issuance or
      any
      Indebtedness of the Company and its Subsidiaries permitted to be incurred
      pursuant to Section 6.1 (other than Section 6.1(h) (except to the extent
      proceeds from such issuance are used to consummate a Permitted Acquisition
      if
      permitted by such Section)).

    

    “Default”
shall
      mean any event which would constitute an Event of Default, whether or not any
      requirement for the giving of notice or the lapse of time, or both, or any
      other
      condition with respect to such Event of Default, has been
      satisfied.

    

    
      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

    

    

    “Defaulting
      Lender”
shall
      mean, at any time, any Lender that, at such time (a) has failed to make a Loan
      required pursuant to the term of this Credit Agreement or failed to fund a
      Participation Interest in accordance with the terms hereof, (b) has failed
      to
      pay to the Administrative Agent or any Lender an amount owed by such Lender
      pursuant to the terms of this Credit Agreement, or (c) has been deemed insolvent
      or has become subject to a bankruptcy or insolvency proceeding or to a receiver,
      trustee or similar official.

    

    “Deposit
      Account Control Agreement”
shall
      mean an agreement, among a Credit Party, a depository institution, and the
      Administrative Agent, which agreement is in a form reasonably acceptable to
      the
      Administrative Agent and which provides the Administrative Agent with “control”
(as such term is used in Article 9 of the Uniform Commercial Code) over the
      deposit account(s) described therein, as the same may be as amended, modified,
      extended, restated, replaced, or supplemented from time to time.

    

    “Dispute”
shall
      have the meaning set forth in Section 9.21.

    

    “Dollars”
and
      “$”
shall
      mean dollars in lawful currency of the United States of America.

    

    “Domestic
      Lending Office”
shall
      mean, initially, the office of each Lender designated as such Lender’s Domestic
      Lending Office in such Lender’s Administrative Details Form; and thereafter,
      such other domestic office of such Lender as such Lender may from time to time
      specify to the Administrative Agent and the Borrower as the office of such
      Lender at which Alternate Base Rate Loans of such Lender are to be
      made.

    

    “Domestic
      Subsidiary”
shall
      mean any Subsidiary that is organized and existing under the laws of the United
      States or any state or commonwealth thereof or under the laws of the District
      of
      Columbia (other than any Subsidiary domiciled in Puerto Rico).

    

    “Eligible
      Assignee”
means
      (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund, and (d) any
      other Person (other than a natural person) approved by (i) the Administrative
      Agent, (ii) in the case of any assignment of a Revolving Commitment, the Issuing
      Bank, and (iii) unless an Event of Default has occurred and is continuing,
      the
      Borrower (each such approval not to be unreasonably withheld or delayed);
provided
      that
      notwithstanding the foregoing, “Eligible Assignee” shall not include the
      Borrower or any of the Borrower’s Affiliates or Subsidiaries.

    

    “Environmental
      Laws”
shall
      mean any and all applicable foreign, Federal, state, local or municipal laws,
      rules, orders, regulations, statutes, ordinances, codes, decrees, requirements
      of any Governmental Authority or other Requirement of Law (including common
      law)
      regulating, relating to or imposing liability or standards of conduct concerning
      protection of human health as such relates to exposure to Materials of
      Environmental Concern or the environment, as now or may at any time be in effect
      during the term of this Agreement.

    

    
      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

    

    

    “Equity
      Issuance”
shall
      mean any issuance by the Company or any of its Subsidiaries to any Person that
      is not a Credit Party or a Subsidiary of (a) shares of its Capital Stock,
      (b) any shares of its Capital Stock pursuant to the exercise of options or
      warrants (excluding employee stock options), (c) any shares of its Capital
      Stock pursuant to the conversion of any debt securities to equity or
      (d) warrants or options which are exercisable for shares of its Capital
      Stock. The term “Equity Issuance” shall not include any Asset Disposition, Debt
      Issuance, stock options, restricted stock or stock appreciation rights issued
      by
      the Company or any of its Subsidiaries under a long-term incentive or employee
      benefit plan of the Company or any successor plan, any shares of Capital Stock
      issued in connection with a stock split (whether pursuant to a stock split
      in
      the form of a stock dividend or otherwise), or any Capital Stock or stock
      options issued in connection with or relating to the Acquisition.

    

    “ERISA”
shall
      mean the Employee Retirement Income Security Act of 1974, as amended, modified,
      succeeded or replaced from time to time.

    

    “Eurodollar
      Reserve Percentage”
shall
      mean for any day, the percentage (expressed as a decimal and rounded upwards,
      if
      necessary, to the next higher 1/100th of 1%) that is in effect for such day
      as
      prescribed by the Federal Reserve Board (or any successor) for determining
      the
      maximum reserve requirement (including without limitation any basic,
      supplemental or emergency reserves) in respect of Eurocurrency liabilities,
      as
      defined in Regulation D of such Board as in effect from time to time, or any
      similar category of liabilities for a member bank of the Federal Reserve System
      in New York City.

    

    “Event
      of Default”
shall
      mean any of the events specified in Section 7.1; provided,
      however,
      with
      respect to any such event, that any requirement for the giving of notice or
      the
      lapse of time, or both, or any other condition with respect thereto, has been
      satisfied.

    

    “Excess
      Cash Flow”
      shall
      mean, with respect to any fiscal year of the Company commencing with the
      Company’s fiscal year ending December 31, 2007, for the Company and its
      Subsidiaries on a consolidated basis, an amount equal to (a)
      Consolidated EBITDA for such period minus
      (b)
      Consolidated Capital Expenditures paid in cash for such period minus
      (c) Scheduled
      Funded Debt Payments made during such period minus
      (d)
      Consolidated Interest Expense paid in cash (excluding any Consolidated Interest
      Expense associated with intercompany Indebtedness) for such period minus
      (e)
      amounts
      paid in respect of federal, state, local and foreign income taxes of the Company
      and its Subsidiaries with respect to such period minus
      (f)
      increases in Consolidated Working Capital plus
      (g)
      decreases in Consolidated Working Capital minus
      (h)
      optional prepayments of Revolving Loans (to the extent accompanied by a
      corresponding reduction of the Revolving Committed Amount) and the Term Loan
      made pursuant to Section 2.7(a) minus
      (i)
      except
      to the extent financed with the proceeds from the incurrence of Indebtedness
      or
      any Equity Issuance, the amount of any cash consideration paid in connection
      with any Permitted Acquisition during such period.

    

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

    

    “Extension
      of Credit”
shall
      mean, as to any Lender, the making of a Loan by such Lender or the issuance
      of,
      or participation in, a Letter of Credit by such Lender.

    

    “Federal
      Funds Effective Rate”
shall
      have the meaning set forth in the definition of “Alternate Base
      Rate”.

    

    
      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

    

    

    “Fee
      Letters”
shall
      mean (a)
      the
      Agent’s Fee Letter and (b)
      the
      letter agreement dated July 27, 2006 addressed to the Borrower from Wachovia,
      WCM and Citigroup Global Markets Inc.

    

    “Fixed
      Charge Coverage Ratio”
shall
      mean, with respect to the Company and
      its
      Subsidiaries on a consolidated basis for the twelve-month period ending on
      the
      last day of any fiscal quarter of the Company,
      the
      ratio of (a)
      Consolidated EBITDA for such period to (b) the
      sum of Consolidated Interest Expense for such period plus
      Scheduled Funded Debt Payments required to be made during such period
plus
      cash
      taxes paid or payable during such period plus
      Consolidated Capital Expenditures for such period plus
      Restricted Payments made during such period. Notwithstanding the foregoing,
      for
      purposes of calculating the Fixed Charge Coverage Ratio for the fiscal quarters
      ending December 31, 2006, March 31, 2007 and June 30, 2007, the Fixed Charge
      Coverage Ratio shall be determined by annualizing the Consolidated Interest
      Expense and Scheduled Funded Debt Payments during such fiscal quarters such
      that
      (i) for the calculation of the Fixed Charge Coverage Ratio as of December 31,
      2006, the Consolidated Interest Expense and Scheduled Funded Debt Payments
      for
      such fiscal quarter would be multiplied by four (4), (ii) for the
      calculation of the Fixed Charge Coverage Ratio as of March 31, 2007, the
      Consolidated Interest Expense and the Scheduled Funded Debt Payments for the
      two
      fiscal quarter period then ending would be multiplied by two (2) and (iii)
      for the calculation of the Fixed Charge Coverage Ratio as of June 30, 2007,
      the
      Consolidated Interest Expense and the Scheduled Funded Debt Payments for the
      three fiscal quarter period then ending would be multiplied by one and
      one-third (1 1/3).

    

    “Flood
      Hazard Property”
shall
      have the meaning set forth in Section 5.14(d).

    

    “Foreign
      Subsidiary”
shall
      mean any Subsidiary that is not a Domestic Subsidiary, but shall not include
      Victory, Colgate, Swiftsure or UK Ltd.

    

    “Fund”
means
      any Person (other than a natural person) that is (or will be) engaged in making,
      purchasing, holding or otherwise investing in commercial loans and similar
      extensions of credit in the ordinary course of its business.

    

    “Funded
      Debt”
shall
      mean,
      with
      respect to any Person, without duplication, (a) all obligations of such Person
      for borrowed money, (b) all obligations of such Person evidenced by bonds,
      debentures, notes or similar instruments, or upon which interest payments are
      customarily made, (c) all obligations of such Person under conditional sale
      or
      other title retention agreements relating to property purchased by such Person
      (other than customary reservations or retentions of title under agreements
      with
      suppliers entered into in the ordinary course of business), (d) all obligations
      of such Person incurred, issued or assumed as the deferred purchase price of
      property or services purchased by such Person (other than trade debt incurred
      in
      the ordinary course of business and due within six months of the incurrence
      thereof) that would appear as liabilities on a balance sheet of such Person,
      including, without limitation, the reasonably anticipated liability relating
      to
      any earnout obligations whether or not included on the balance sheet of such
      Person, (e) the principal portion of all obligations of such Person under
      Capital Leases, (f) all obligations of such Person under Hedging Agreements
      to
      the extent required to be accounted for as a liability under GAAP, excluding
      any
      portion thereof which would be accounted for as interest expense under GAAP,
      (g)
      the maximum amount of all letters of credit issued or bankers’ acceptances
      facilities created for the account of such Person and, without duplication,
      all
      drafts drawn thereunder (to the extent unreimbursed), (h) all preferred Capital
      Stock or other equity interests issued by such Person and which by the terms
      thereof could be (at the request of the holders thereof or otherwise) subject
      to
      mandatory sinking fund payments, redemption or other acceleration, (i)
the
      principal balance outstanding under any synthetic lease, tax retention operating
      lease, off-balance sheet loan or similar off-balance sheet financing
      product,
      (j) all
      Indebtedness of others of the type described in clauses (a) through (i) hereof
      secured by (or for which the holder of such Indebtedness has an existing right,
      contingent or otherwise, to be secured by) any Lien on, or payable out of the
      proceeds of production from, property owned or acquired by such Person, whether
      or not the obligations secured thereby have been assumed; provided
      that for
      purposes of the amount of Indebtedness pursuant to this clause (j) shall equal
      the lesser of (i) such Indebtedness, or (ii) the value of the property subject
      to such Lien, (k) all Guaranty Obligations of such Person with respect to
      Indebtedness of another Person of the type described in clauses (a) through
      (i)
      hereof, and (l) all Indebtedness of the type described in clauses (a) through
      (i) hereof of any partnership or unincorporated joint venture in which such
      Person is a general partner or a joint venturer; provided,
      however,
      that
      with respect to Funded Debt of the Company and its Subsidiaries, Funded Debt
      shall not include (x) Subordinated Indebtedness among the Borrower and the
      Guarantors to the extent such Indebtedness would be eliminated on a consolidated
      basis or (y) any obligation of the Company to Medtronic in connection with
      the
      termination of the Medtronic Services Agreement in an aggregate amount not
      to
      exceed $6,100,000 during the term of this Agreement.

    

    
      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

    

    

    “GAAP”
shall
      mean generally accepted accounting principles in effect in the United States
      of
      America applied on a consistent basis, subject,
      however,
      in the
      case of determination of compliance with the financial covenants set out in
      Section 5.9, to the provisions of Section 1.3.

    

    “German
      Breg”
shall
      mean Breg Deutschland GmbH, a German company.

    

    “German
      Buyout”
shall
      mean the purchase by Orthofix GmbH of the remaining 48% ownership interest
      in
      German Breg pursuant to that certain deferred purchase agreement, dated as
      of
      February 17, 2006 by and among Orthofix GmbH, Stephan Michels, Ronald Hansjorg,
      Nikolaus Murges and Albert Engal.

    

    “Government
      Acts”
shall
      have the meaning set forth in Section 2.19(a).

    

    “Governmental
      Authority”
shall
      mean any nation or government, any state or other political subdivision thereof
      and any entity exercising executive, legislative, judicial, regulatory or
      administrative functions of or pertaining to government.

    

    “Guarantor”
shall
      mean the Company, Colgate, Victory and each
      Subsidiary Guarantor.

    

    “Guaranty”
shall
      mean the guaranty of the Guarantors set forth in Article X.

    

    “Guaranty
      Obligations”
shall
      mean, with respect to any Person, without duplication, any obligations of such
      Person (other than endorsements in the ordinary course of business of negotiable
      instruments for deposit or collection) guaranteeing or intended to guarantee
      any
      Indebtedness of any other Person in any manner, whether direct or indirect,
      and
      including without limitation any obligation, whether or not contingent,
      (a)
      to
      purchase any such Indebtedness or any property constituting security therefore,
      (b)
      to
      advance or provide funds or other support for the payment or purchase of any
      such Indebtedness or to maintain working capital, solvency or other balance
      sheet condition of such other Person (including without limitation keep well
      agreements, maintenance agreements, comfort letters or similar agreements or
      arrangements) for the benefit of any holder of Indebtedness of such other
      Person, (c)
      to
      lease or purchase Property, securities or services primarily for the purpose
      of
      assuring the holder of such Indebtedness, or (d)
      to
      otherwise assure or hold harmless the holder of such Indebtedness against loss
      in respect thereof. The amount of any Guaranty Obligation hereunder shall
      (subject to any limitations set forth therein) be deemed to be an amount equal
      to the outstanding principal amount (or maximum principal amount, if larger)
      of
      the Indebtedness in respect of which such Guaranty Obligation is
      made.

    

    
      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

    

    

    “Hedging
      Agreement Provider”
shall
      mean any Person that enters into a Secured Hedging Agreement with a Credit
      Party
      or any of its Subsidiaries that is permitted by Section 6.1(f) to the extent
      such Person is a Lender, an Affiliate of a Lender or any other Person that
      was a
      Lender (or an Affiliate of a Lender) at the time it entered into the Secured
      Hedging Agreement but has ceased to be a Lender (or whose Affiliate has ceased
      to be a Lender) under the Credit Agreement; provided, in the case of a Secured
      Hedging Agreement with a Person who is no longer a Lender, such Person shall
      be
      considered a Hedging Agreement Provider only through the stated maturity date
      (without extension or renewal) of such Secured Hedging Agreement. 

    

    “Hedging
      Agreements”
shall
      mean, with respect to any Person, any agreements entered into to protect such
      Person against fluctuations in interest rates, or currency or raw materials
      values, including, without limitation, any interest rate swap, cap or collar
      agreements or similar arrangements between such Person and one or more
      counterparties, any foreign currency exchange agreements, currency protection
      agreements, commodity purchase or option agreements or other interest or
      exchange rate or commodity price hedging agreements.

    

    “Incremental
      Term Facility”
shall
      have the meaning set forth in Section 2.2.

    

    “Indebtedness”
shall
      mean, with
      respect to any Person, without duplication, (a) all obligations of such Person
      for borrowed money, (b) all obligations of such Person evidenced by bonds,
      debentures, notes or similar instruments, or upon which interest payments are
      customarily made, (c) all obligations of such Person under conditional sale
      or
      other title retention agreements relating to property purchased by such Person
      (other than customary reservations or retentions of title under agreements
      with
      suppliers entered into in the ordinary course of business), (d) all obligations
      of such Person issued or assumed as the deferred purchase price of property
      or
      services purchased by such Person (other than trade debt incurred in the
      ordinary course of business and due within six months of the incurrence thereof)
      that would appear as liabilities on a balance sheet of such Person, including,
      without limitation, the reasonably anticipated liability relating to any earnout
      obligations whether or not included on the balance sheet of such Person, (e)
      all
      obligations of such Person under take-or-pay or similar arrangements or under
      commodities agreements, (f) all Indebtedness of others secured by (or for which
      the holder of such Indebtedness has an existing right, contingent or otherwise,
      to be secured by) any Lien on, or payable out of the proceeds of production
      from, property owned or acquired by such Person, whether or not the obligations
      secured thereby have been assumed, provided that for purposes of the amount
      of
      Indebtedness pursuant to this clause (j) shall equal the lesser of (i) such
      Indebtedness, or (ii) the value of the property subject to such Lien, (g) all
      Guaranty Obligations of such Person with respect to Indebtedness of another
      Person, (h) the principal portion of all obligations of such Person under
      Capital Leases plus any accrued interest thereon, (i) all obligations of such
      Person under Hedging Agreements to the extent required to be accounted for
      as a
      liability under GAAP, excluding any portion thereof which would be accounted
      for
      as interest expense under GAAP, (j) the maximum amount of all letters of credit
      issued or bankers’ acceptances facilities created for the account of such Person
      and, without duplication, all drafts drawn thereunder (to the extent
      unreimbursed), (k) all preferred Capital Stock or other equity interest issued
      by such Person and which by the terms thereof could be (at the request of the
      holders thereof or otherwise) subject to mandatory sinking fund payments,
      redemption or other acceleration, (l) the
      principal balance outstanding under any synthetic lease, tax retention operating
      lease, off-balance sheet loan or similar off-balance sheet financing product
      plus any accrued interest thereon,
      and (m)
      the Indebtedness of any partnership or unincorporated joint venture in which
      such Person is a general partner or a joint venturer; provided,
      however,
      that
      with respect to Indebtedness of the Company, Indebtedness shall not include
      any
      obligation of the Company to Medtronic in connection with the termination of
      the
      Medtronic Services Agreement in an aggregate amount not to exceed $6,100,00
      during the term of this Agreement.

    

    
      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

    

    

    “Insolvency”
shall
      mean, with respect to any Multiemployer Plan, the condition that such Plan
      is
      insolvent within the meaning of such term as used in Section 4245 of
      ERISA.

    

    “Insolvent”
shall
      mean being in a condition of Insolvency.

    

    “Intellectual
      Property”
shall
      mean, collectively, all
      Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks and
      Trademark Licenses.

    

    “Interest
      Determination Date”
shall
      have the meaning assigned thereto in the definition of “Applicable
      Percentage”.

    

    “Interest
      Payment Date”
shall
      mean (a) as to any Alternate Base Rate Loan or Swingline Loan, the last Business
      Day of each March, June, September and December during the term of this
      Agreement and on the applicable Maturity Date, (b) as to any LIBOR Rate Loan
      having an Interest Period of three months or less, the last day of such Interest
      Period, (c) as to any LIBOR Rate Loan having an Interest Period longer than
      three months, (i)
      each
      three month anniversary of the first day of such Interest Period and
      (ii)
      the
      last day of such Interest Period, and (d) as to any Loan which is the subject
      of
      a mandatory prepayment required pursuant to Section 2.7(b) hereof, the date
      of
      such prepayment.

    

    “Interest
      Period”
shall
      mean, subject to availability, with respect to any LIBOR Rate Loan,

    

    (a)    initially,
      the period commencing on the Borrowing Date or conversion date, as the case
      may
      be, with respect to such LIBOR Rate Loan and ending one, two, three, six, or
      subject to the consent of all applicable Lenders, nine months thereafter, as
      selected by the Borrower in the Notice of Borrowing or Notice of
      Conversion/Extension given with respect thereto; and

    

    
      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

    

    

    (b)    thereafter,
      each period commencing on the last day of the immediately preceding Interest
      Period applicable to such LIBOR Rate Loan and ending one, two, three, six,
      or,
      subject to the consent of all applicable Lenders, nine months thereafter, as
      selected by the Borrower by irrevocable notice to the Administrative Agent
      not
      less than three (3) Business Days prior to the last day of the then current
      Interest Period with respect thereto;

    

    provided
      that the
      foregoing provisions are subject to the following:

    

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

    

    (ii)    any
      Interest Period pertaining to a LIBOR Rate Loan that begins on the last Business
      Day of a calendar month (or on a day for which there is no numerically
      corresponding day in the calendar month at the end of such Interest Period)
      shall end on the last Business Day of the relevant calendar month for such
      Interest Period;

    

    (iii)   if
      the
      Borrower shall fail to give notice as provided above, the Borrower shall be
      deemed to have selected an Alternate Base Rate Loan to replace the affected
      LIBOR Rate Loan;

    

    (iv)   any
      Interest Period in respect of any Loan that would otherwise extend beyond the
      Maturity Date for such Loan shall end on such Maturity Date; 

    

    (v)    with
      regard to the Term Loan, no Interest Period shall extend beyond any principal
      amortization payment date unless the portion of the Term Loan consisting of
      Alternate Base Rate Loans together with the portion of the Term Loan consisting
      of LIBOR Rate Loans with Interest Periods expiring prior to or concurrently
      with
      the date such principal amortization payment date is due, is at least equal
      to
      the amount of such principal amortization payment due on such date; and

    

    (vi)   no
      more
      than six (6) LIBOR Rate Loans may be in effect at any time; provided
      that,
      for purposes hereof, LIBOR Rate Loans with different Interest Periods shall
      be
      considered as separate LIBOR Rate Loans, even if they shall begin on the same
      date and have the same duration, although borrowings, extensions and conversions
      may, in accordance with the provisions hereof, be combined at the end of
      existing Interest Periods to constitute a new LIBOR Rate Loan with a single
      Interest Period.

    

    
      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

    

    

    “Internal
      Control Event”
shall
      mean a material weakness in, or fraud that involves management or other
      employees who have a significant role in, any Credit Party’s internal controls
      over financial reporting, in each case as described in the Securities Laws,
      to
      the extent such material weakness or fraud could reasonably be expected to
      cause
      a Material Adverse Effect.

    

    “Investment”
shall
      mean all investments made directly or indirectly in, to or from any Person,
      whether in cash or by acquisition of shares of Capital Stock, property, assets,
      indebtedness or other obligations or securities or by loan advance, capital
      contribution or otherwise.

    

    “Issuing
      Lender”
shall
      mean Wachovia.

    

    “Issuing
      Lender Fees”
shall
      have the meaning set forth in Section 2.5(c).

    

    “Joinder
      Agreement”
shall
      mean a Joinder Agreement substantially in the form of Schedule
      5.10,
      executed and delivered by an Additional Credit Party in accordance with the
      provisions of Section 5.10.

    

    “Judgment
      Currency”
shall
      have the meaning set forth in Section 9.20.

    

    “Lender”
shall
      have the meaning set forth in the first paragraph of this Agreement and shall
      include the Issuing Lender and the Swingline Lender.

    

    “Lender
      Commitment Letter”
shall
      mean, with respect to any Lender, the letter (or other correspondence) to such
      Lender from the Administrative Agent notifying such Lender of its LOC
      Commitment, Revolving Commitment Percentage and/or Term Loan Commitment
      Percentage.

    

    “Letters
      of Credit”
shall
      mean any letter of credit issued by the Issuing Lender pursuant to the terms
      hereof, as such Letters of Credit may be amended, modified, extended, renewed
      or
      replaced from time to time.

    

    “Letter
      of Credit Fee”
shall
      have the meaning set forth in Section 2.5(b).

    

    “Leverage
      Ratio”
shall
      mean, with
      respect to the Company and its Subsidiaries
      on a consolidated basis for the twelve-month period ending on the last day
      of
      any fiscal quarter of the Company,
      the
      ratio of (a) Funded Debt of the Company and its Subsidiaries on a consolidated
      basis on the last day of such period to (b) Consolidated EBITDA of the Company
      and its Subsidiaries for such period. 

    

    
      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

    

    

    “LIBOR”
shall
      mean, for
      any
      LIBOR Rate Loan for any Interest Period therefore, the rate per annum (rounded
      upwards, if necessary, to the nearest 1/100 of 1%) appearing on Telerate Page
      3750 (or any successor page) as the London interbank offered rate for deposits
      in Dollars at approximately 11:00 A.M.
      (London
      time) two (2) Business Days prior to the first day of such Interest Period
      for a term comparable to such Interest Period. If for any reason such rate
      is
      not available, the term “LIBOR” shall mean, for any LIBOR Rate Loan for any
      Interest Period therefore, the rate per annum (rounded upwards, if necessary,
      to
      the nearest 1/100 of 1%) appearing on Reuters Screen LIBO Page as the London
      interbank offered rate for deposits in Dollars at approximately 11:00
A.M.
      (London
      time) two (2) Business Days prior to the first day of such Interest Period
      for a term comparable to such Interest Period; provided,
      however,
      if more
      than one rate is specified on Reuters Screen LIBO Page, the applicable rate
      shall be the arithmetic mean of all such rates (rounded upwards, if necessary,
      to the nearest 1/100 of 1%). If,
      for
      any reason, neither of such rates is available, then “LIBOR” shall mean the rate
      per annum at which, as determined by the Administrative Agent, Dollars in an
      amount comparable to the Loans then requested are being offered to leading
      banks
      at approximately 11:00 A.M. London time, two (2) Business Days prior to the
      commencement of the applicable Interest Period for settlement in immediately
      available funds by leading banks in the London interbank market for a period
      equal to the Interest Period selected.

    

    “LIBOR
      Lending Office”
shall
      mean, initially, the office of each Lender designated as such Lender’s LIBOR
      Lending Office in such Lender’s Administrative Details Form; and thereafter,
      such other office of such Lender as such Lender may from time to time specify
      to
      the Administrative Agent and the Borrower as the office of such Lender at which
      the LIBOR Rate Loans of such Lender are to be made.

    

    “LIBOR
      Rate”
shall
      mean a rate per annum (rounded upwards, if necessary, to the next higher 1/100th
      of 1%) determined by the Administrative Agent pursuant to the following
      formula:

     

    
      LIBOR
        Rate
        =               
                 LIBOR                             

        
                  1.00
        -
        Eurodollar Reserve Percentage

       

    

    “LIBOR
      Rate Loan”
shall
      mean Loans the rate of interest applicable to which is based on the LIBOR
      Rate.

    

    “Lien”
shall
      mean any mortgage, pledge, hypothecation, assignment, deposit arrangement,
      encumbrance, lien (statutory or other), charge or other security interest or
      any
      preference, priority or other security agreement or preferential arrangement
      of
      any kind or nature whatsoever (including, without limitation, any conditional
      sale or other title retention agreement and any Capital Lease having
      substantially the same economic effect as any of the foregoing).

    

    “Loan”
shall
      mean a Revolving Loan, a Swingline Loan and/or a Term Loan, as
      appropriate.

    

    “LOC
      Commitment”
shall
      mean the commitment of the Issuing Lender to issue Letters of Credit and, with
      respect to each Revolving Lender, the commitment of such Revolving Lender to
      purchase participation interests in the Letters of Credit up to the amount
      identified as such Revolving Lender’s “LOC Commitment” on such Lender’s Lender
      Commitment Letter or in the Register, as such amount may be modified in
      connection with any assignment made in accordance with the provisions of Section
      9.6(c) or reduced from time to time in accordance with the provisions
      hereof.

    

    
      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

    

    

    “LOC
      Committed Amount”
shall
      have the meaning set forth in Section 2.3(a).

    

    “LOC
      Documents”
shall
      mean, with respect to any Letter of Credit, such Letter of Credit, any
      amendments thereto, any documents delivered in connection therewith, any
      application therefore, and any agreements, instruments, guarantees or other
      documents (whether general in application or applicable only to such Letter
      of
      Credit) governing or providing for (a)
      the
      rights and obligations of the parties concerned or (b)
      any
      collateral security for such obligations.

    

    “LOC
      Obligations”
shall
      mean, at any time, the sum of (a)
      the
      maximum amount which is, or at any time thereafter may become, available to
      be
      drawn under Letters of Credit then outstanding, assuming compliance with all
      requirements for drawings referred to in such Letters of Credit plus
      (b)
      the
      aggregate amount of all drawings under Letters of Credit honored by the Issuing
      Lender but not theretofore reimbursed.

    

    “Mandatory
      Borrowing”
shall
      have the meaning set forth in Section 2.3(e) and Section 2.4(b)(ii),
      as the context may require.

    

    “Material
      Adverse Effect”
shall
      mean a material adverse effect on (a) the business, operations, property,
      condition (financial or otherwise) or prospects of the Company and its
      Subsidiaries taken as a whole or the Borrower and its Subsidiaries taken as
      a
      whole, (b) the ability of the Borrower or the Borrower and the Guarantors taken
      as a whole, to perform their obligations when such obligations are required
      to
      be performed, under this Agreement, any of the Notes or any other Credit
      Document or (c) the validity or enforceability of this Agreement, any of the
      Notes or any of the other Credit Documents or the rights or remedies of the
      Administrative Agent or the Lenders hereunder or thereunder.

    

    “Material
      Contract”
shall
      mean any contract or other arrangement, whether written or oral, to which any
      Credit Party is a party as to which the breach, nonperformance, cancellation
      or
      failure to renew by any party thereto could reasonably be expected to have
      a
      Material Adverse Effect.

    

    “Material
      Property”
shall
      mean real and/or personal property of the Credit Parties with an aggregate
      fair
      market value greater than or equal to $5,000,000.

    

    “Materials
      of Environmental Concern”
shall
      mean any gasoline or petroleum (including crude oil or any fraction thereof)
      or
      petroleum products or any hazardous or toxic substances, materials or wastes,
      defined or regulated as such in or under any Environmental Law, including,
      without limitation, asbestos, polychlorinated biphenyls and urea-formaldehyde
      insulation.

    

    “Maturity
      Date”
shall
      mean the Revolver Maturity Date and/or the Term Loan Maturity Date, as
      applicable.

    

    
      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

    

    

    “Medicaid”
shall
      mean that entitlement program under Title XIX of the Social Security Act that
      provides federal grants to states for medical assistance based on specific
      eligibility criteria.

    

    “Medicaid
      Certification”
shall
      mean recognition by a state agency or other such entity administering a
      particular state’s Medicaid program that a health care provider or supplier is
      in compliance with all the conditions of participation set forth in the
      appropriate state and federal Medicaid Regulations.

    

    “Medicaid
      Provider Agreement”
shall
      mean an agreement entered into between a state agency
      or
      other such entity administering the Medicaid program and a health care provider
      or supplier under which the health care provider or supplier agrees to provide
      services for Medicaid patients in accordance with the terms of the agreement
      and
      Medicaid Regulations.

    

    “Medicaid
      Regulations”
shall
      mean, collectively, (a)
      all
      federal statutes (whether set forth in Title XIX of the Social Security Act
      or
      elsewhere) affecting the medical assistance program established by Title XIX
      of
      the Social Security Act and any statutes succeeding thereto; (b)
      all
      applicable provisions of all federal rules, regulations, manuals and orders
      of
      all Governmental Authorities promulgated pursuant to or in connection with
      the
      statutes described in clause (a) above and all federal administrative,
      reimbursement and other guidelines of all Governmental Authorities having the
      force of law promulgated pursuant to or in connection with the statutes
      described in clause (a) above; (c)
      all
      state statutes and plans for medical assistance enacted in connection with
      the
      statutes and provisions described in clauses (a) and (b) above; and
      (d)
      all
      applicable provisions of all rules, regulations, manuals and orders of all
      Governmental Authorities promulgated pursuant to or in connection with the
      statutes described in clause (c) above and all state administrative,
      reimbursement and other guidelines of all Governmental Authorities having the
      force of law promulgated pursuant to or in connection with the statutes
      described in clause (b) above, in each case as may be amended, supplemented
      or
      otherwise modified from time to time.

    

    “Medical
      Reimbursement Programs”
shall
      mean Medicare, Medicaid and TRICARE programs and any other healthcare program
      operated by or financed in whole or in part by any foreign, federal, state
      or
      local government and any other non-government funded third party payor
      programs.

    

    “Medicare
      Certification”
shall
      mean recognition by CMS or an entity under contract with CMS that the health
      care provider or supplier is in compliance with all of the conditions of
      participation set forth in the Medicare Regulations.

    

    “Medicare
      Provider Agreement”
means
      an agreement entered into between CMS or other such entity administering the
      Medicare program on behalf of CMS, and a health care provider or supplier under
      which the health care provider or supplier agrees to provide services for
      Medicare patients in accordance with the terms of the agreement and Medicare
      Regulations.

    

    
      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

    

    

    “Medicare”
shall
      mean that government-sponsored entitlement program under Title XVIII of the
      Social Security Act that provides for a health insurance system for eligible
      elderly and disabled individuals.

    

    “Medicare
      Regulations”
shall
      mean, collectively, all Federal statutes (whether set forth in Title XVIII
      of
      the Social Security Act or elsewhere) affecting the health insurance program
      for
      the aged and disabled established by Title XVIII of the Social Security Act
      and
      any statutes succeeding thereto; together with all applicable provisions of
      all
      rules, regulations, manuals and orders and administrative, reimbursement and
      other guidelines having the force of law of all Governmental Authorities
      (including, without limitation, the United States Department of Health and
      Human
      Services (“HHS”),
      CMS,
      the OIG, or any person succeeding to the functions of any of the foregoing)
      promulgated pursuant to or in connection with any of the foregoing having the
      force of law, as each may be amended, supplemented or otherwise modified from
      time to time.

    

    “Medtronic”
shall
      mean Medtronic Sofamor Danek USA, Inc., a Tennessee corporation.

    

    “Medtronics
      Services Agreement”
shall
      mean that certain Marketing Services Agreement, effective May 1, 2005 and
      terminated August 10, 2006, between the Company and Medtronic.

    

    “Moody’s”
shall
      mean Moody’s Investors Service, Inc or any successor rating agency.

    

    “Mortgage
      Instruments”
shall
      mean any mortgage, deed of trust or deed to secure debt executed by a Credit
      Party in favor of the Administrative Agent pursuant to the terms of Section
      5.14(d), 5.10 or 5.12, as the same may be amended, modified, restated or
      supplemented from time to time.

    

    “Mortgage
      Policy”
shall
      mean an ALTA mortgagee title insurance policy issued by the Title Insurance
      Company in an amount (limited to 125% of the appraised value (if an appraisal
      is
      available) or, if no appraisal is available, then 125% of the assessed
      value) satisfactory
      to the Administrative Agent, in form and substance satisfactory to the
      Administrative Agent.

    

    “Mortgaged
      Property”
shall
      mean any owned or leased real property of a Credit Party with respect to which
      such Credit Party executes a Mortgage Instrument in favor of the Administrative
      Agent.

    

    “Multiemployer
      Plan”
shall
      mean a Plan which is a multiemployer plan as defined in Section 4001(a)(3)
      of
      ERISA.

    

    “Net
      Cash Proceeds”
shall
      mean the aggregate cash proceeds received by (a) the Company or any of its
      Subsidiaries in respect of any Asset Disposition, Debt Issuance, Recovery Event
      or sale, lease, transfer or other disposition pursuant to Section 6.4(a)(iii)(B)
      and (b) the Company or any of the Company’s Subsidiaries in respect of any
      Equity Issuance, in each case net of (i) direct costs paid or payable as a
      result thereof (including, without limitation, reasonable legal, accounting
      and
      investment banking fees, and sales commissions), (ii) taxes paid or payable
      as a
      result thereof and (iii) with respect to Indebtedness incurred pursuant to
      Section 6.1(h), the direct costs incurred prior to or within 7 days of the
      issuance of such Indebtedness and paid or payable as a result of any call spread
      or simultaneous purchase and sale of call options for the same number of shares
      instituted with respect to such Indebtedness in an aggregate amount up to 15%
      of
      the gross proceeds received by the Company and its Subsidiaries from such
      Indebtedness; it being understood that “Net Cash Proceeds” shall include,
      without limitation, any cash received upon the sale or other disposition of
      any
      non-cash consideration received by the Company or any of its Subsidiaries in
      respect of such Asset Disposition, Equity Issuance, Debt Issuance, Recovery
      Event or sale, lease, transfer or other disposition pursuant to Section
      6.4(a)(iii)(B).

    

    
      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

    

    

    “Note”
or
      “Notes”
shall
      mean the Revolving Notes, the Swingline Note and/or the Term Notes,
      collectively, separately or individually, as appropriate.

    

    “Notice
      of Borrowing”
shall
      have the meaning set forth in Section 2.1(b)(i).

    

    “Notice
      of Conversion/Extension”
shall
      have the meaning set forth in Section 2.10.

    

    “Obligations”
shall
      mean, collectively, Loans and LOC Obligations.

    

    “OFAC”
shall
      mean the U.S. Department of the Treasury’s Office of Foreign Assets
      Control.

    

    “OIG”
shall
      mean the Office of the Inspector General for the United States Department of
      Health and Human Services.

    

    “Participant”
shall
      have the meaning set forth in Section 9.6(b).

    

    “Participation
      Interest”
shall
      mean the purchase by a Revolving Lender of a participation interest in Letters
      of Credit as provided in Section 2.3 and in Swingline Loans as provided in
      Section 2.4.

    

    “Patent
      License”
shall
      mean any agreement, whether written or oral, providing for the grant by or
      to
      the Borrower or any of its Subsidiaries which are Credit Parties of any right
      to
      manufacture, use or sell any invention covered by a Patent, including, without
      limitation, any thereof referred to in Schedule
      3.16.

    

    “Patents”
shall
      mean (a) all patents of the United States or any other country and all reissues
      and extensions thereof, including, without limitation, any thereof referred
      to
      in Schedule 3.16,
      and (b)
      all applications for patents of the United States or any other country and
      all
      divisions, continuations and continuations-in-part thereof, including, without
      limitation, any thereof referred to in Schedule
      3.16.

    

    “Patriot
      Act”
shall
      have the meaning set forth in Section 9.18.

    

    “PBGC”
shall
      mean the Pension Benefit Guaranty Corporation established pursuant to Subtitle
      A
      of Title IV of ERISA.

    

    
      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

    

    

    “Permitted
      Acquisition”
shall
      mean any acquisition or any series of related acquisitions by any Credit Party
      of the assets or a majority of the Voting Stock or equity interests of a Person
      or any division, line of business or other business unit of such Person (such
      Person or such division, line of business or other business unit of such Person
      referred to herein as the “Target”),
      in
      each case that is a type of business (or assets used in a type of business)
      permitted to be engaged in by the Credit Parties pursuant to this Credit
      Agreement, so long as (a)
      no
      Default or Event of Default shall then exist or would exist after giving effect
      thereto, (b)
      to the
      extent required under this Agreement, the Administrative Agent, on behalf of
      the
      Lenders, shall have received (or shall receive in connection with the closing
      of
      such acquisition), a first priority perfected security interest in all property
      with such exceptions as are consistent with Permitted Liens or otherwise
      reasonably approved by the Administrative Agent (including, without limitation,
      Capital Stock or equity interests) acquired with respect to the Target and
      the
      Target, if a Person, shall have executed a Joinder Agreement, (c)
      such
      acquisition is not a “hostile” acquisition and has been approved by the board of
      directors and/or shareholders (or comparable persons or groups) of the
      applicable Credit Party and the Target, (d) the
      total consideration (including, without limitation, cash, assumed Indebtedness,
      earnout payments and any other deferred payment but excluding the Capital Stock
      of the applicable Credit Party) paid for the Target acquired in such acquisition
      or series of related acquisitions shall not exceed $40,000,000 for any
      individual acquisition (or series of related acquisitions) or $100,000,000
      (of
      which only $25,000,000 in the aggregate may be acquisitions or portions of
      acquisitions involving assets situated outside the United States of America
      or
      the Capital Stock of any Person organized outside the United States of America)
      in the aggregate during the term of this Agreement, (e)
      to the
      extent the total consideration of any Permitted Acquisition is in excess of
      $15,000,000, the Target shall have earnings before interest, taxes, depreciation
      and amortization in an amount greater than $0, determined on a Pro Forma Basis
      for the period of twelve fiscal months most recently ended, (f) after
      giving effect to such acquisition, there shall be at least $10,000,000 of
      borrowing availability under the Revolving Committed Amount, (g)
      the
      Administrative Agent shall have received a certificate from a Responsible
      Officer of the Borrower certifying that, in the reasonable judgment of the
      Credit Parties, the Credit Parties have conducted such financial, legal,
      environmental and consulting due diligence with respect to the Target as a
      substantially similarly situated prudent purchaser acquiring substantially
      similar property and/or assets would customarily conduct, and (h)
      to the
      extent the total consideration of any Permitted Acquisition is in excess of
      $5,000,000 or the Borrower requests a Revolving Loan to fund such Permitted
      Acquisition, the Borrower shall provide not less than fifteen (15) days prior
      to
      the consummation of such Permitted Acquisition (i) a
      reasonably detailed description of the material terms of such Permitted
      Acquisition (including, without limitation, the purchase price and method and
      structure of payment) and of each Target, (ii) to the extent available,
      financial statements of the Target for the previous two years and year-to-date
      financial statements of the Target, and (iii)
      a
      certificate, in form and substance reasonably satisfactory to the Administrative
      Agent, executed by a Responsible Officer of the Borrower (A) setting forth
      the
      best good faith estimate of the total consideration (including, without
      limitation, cash, Capital Stock, assumed Indebtedness, earnout payments and
      any
      other deferred payment) to be paid for each Target, and (B) certifying that
      such Permitted Acquisition complies with the requirements of this Credit
      Agreement, and (C) certifying and demonstrating that after giving effect to
      such
      Permitted Acquisition and any borrowings in connection therewith on a Pro Forma
      Basis, the Company and its Subsidiaries will be in compliance with the financial
      covenants set forth in Section 5.9.

    

    
      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

    

    

    “Permitted
      Investments”
shall
      mean:

    

    (a)    cash
      and
      Cash Equivalents;

    

    (b)    receivables
      owing to the Borrower or any of its Subsidiaries or any receivables and advances
      to suppliers, in each case if created, acquired or made in the ordinary course
      of business and payable or dischargeable in accordance with customary trade
      terms;

    

    (c)    Investments
      (including, without limitation, the purchase or ownership of Capital Stock)
      by
      any Credit Party in any other Credit Party (other than the Company) and
      Subordinated Indebtedness owing by any Credit Party (other than the Company)
      to
      any other Credit Party; provided
      that any
      Investment or Subordinated Indebtedness made or issued by a Credit Party (other
      than the Company) in or to Colgate or Victory shall be made or issued in
      accordance with the Tax Structure Documents;

    

    (d)    loans
      and
      advances to officers, directors, employees and Affiliates that are not Credit
      Parties or their Subsidiaries in the ordinary course of business in an aggregate
      amount not to exceed $500,000 at any time outstanding;

    

    (e)    Investments
      (including debt obligations) received in connection with the bankruptcy or
      reorganization of suppliers and customers and in settlement of delinquent
      obligations of, and other disputes with, customers and suppliers arising in
      the
      ordinary course of business;

    

    (f)    
Investments
      by any Foreign Subsidiary in any Credit Party or any other Foreign Subsidiary
      and Investments by the Company in any Foreign Subsidiary;

    

    (g)    Investments,
      acquisitions or transactions permitted under Section 6.4(b); 

    

    (h)    Permitted
      Acquisitions; 

    

    (i)    
Hedging
      Agreements to the extent permitted pursuant to Section 6.1(f); 

    

    (j)    
Investments
      set forth on Schedule
      6.5;
      

    

    (k)    loans
      and
      advances by Colgate and Victory to the Company to the extent that such loans
      and
      advances would be permitted by Section 6.10(d), (f) or (i) if made as Restricted
      Payments rather than loans and advances; 

    

    (l)    
Investments
      in German Breg pursuant to the German Buyout in an aggregate amount not to
      exceed $4,000,000;

    

    
      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

    

    

    (m)   direct
      costs referred to in clause (iii) of the definition of Net Cash Proceeds;
      and

    

    (n)    additional
      loan advances and/or Investments of a nature not contemplated by the foregoing
      clauses hereof; provided
      that
      such loans, advances and/or Investments made pursuant to this clause (n) shall
      not exceed an aggregate amount of $5,000,000.

    

    “Permitted
      Liens”
shall
      mean:

    

    (a)    Liens
      created by or otherwise existing, under or in connection with this Agreement
      or
      the other Credit Documents in favor of the Administrative Agent and each other
      Secured Party;

    

    (b)    Liens
      securing purchase money Indebtedness and Capital Lease Obligations to the extent
      permitted under Section 6.1(c), including Liens existing on any asset at the
      time of acquisition pursuant to a Permitted Acquisition (other than any such
      Liens created in contemplation of such acquisition that do not secure the
      purchase price); provided
      that
      (i)
      any
      such Lien attaches to such property concurrently with or within thirty (30)
      days after the acquisition thereof and (ii)
      such
      Lien attaches solely to the property so acquired in such
      transaction;

    

    (c)    Liens
      for
      taxes, assessments, charges or other governmental levies not yet due or as
      to
      which the period of grace (not to exceed 60 days), if any, related thereto
      has
      not expired or which are being contested in good faith by appropriate
      proceedings; provided
      that
      adequate reserves with respect thereto are maintained on the books of the
      Borrower or any of its Subsidiaries, as the case may be, in conformity with
      GAAP;

    

    (d)    carriers’,
      warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens
      arising in the ordinary course of business which are not overdue for a period
      of
      more than sixty (60) days or which are being contested in good faith by
      appropriate proceedings;

    

    (e)    pledges
      or deposits in connection with workers’ compensation, unemployment insurance and
      other social security legislation and deposits securing liability to insurance
      carriers under insurance or self-insurance arrangements incurred in the ordinary
      course of business;

    

    (f)   
          deposits
      to secure the performance of bids, trade contracts (other than for borrowed
      money), leases, statutory obligations, surety and appeal bonds, performance
      bonds and other obligations of a like nature incurred in the ordinary course
      of
      business; 

    

    (g)    any
      extension, renewal or replacement (or successive extensions, renewals or
      replacements), in whole or in part, of any Lien referred to in the foregoing
      clauses; provided
      that
      such extension, renewal or replacement Lien shall be limited to all or a part
      of
      the property which secured the Lien so extended, renewed or
      replaced;

    

    
      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

    

    

    (h)    Liens
      in
      favor of a Hedging Agreement Provider in connection with any Secured Hedging
      Agreement, but only (i)
      to the
      extent such Liens are on the Collateral and are shared ratably with the
      Administrative Agent and (ii)
      if such
      Hedging Agreement Provider, the Administrative Agent and the Lenders shall
      share
      the proceeds of the Collateral subject to such Liens in accordance with the
      terms of Section 2.12(b);

    

    (i)    
Liens
      existing on the Closing Date and set forth on Schedule
      1.1-3;
      provided that no such Lien shall at any time be extended to cover property
      or
      assets other than the property or assets subject thereto on the Closing
      Date;

    

    (j)    
easements,
      rights-of-way, restrictions (including zoning restrictions), minor defects
      or
      irregularities in title and other similar charges or encumbrances shown on
      any
      Mortgage Policy or not, in any material respect, impairing the use of the
      encumbered Property for its intended purposes; 

    

    (k)    Liens
      on
      the assets of Foreign Subsidiaries securing Indebtedness of Foreign Subsidiaries
      permitted by Section 6.1(e); and

    

    (l)    
Liens
      on
      equipment arising from precautionary UCC financing statements relating to the
      lease of such equipment to the extent permitted by this Agreement.

    

    “Person”
shall
      mean an individual, partnership, corporation, limited liability company,
      business trust, joint stock company, trust, unincorporated association, joint
      venture, Governmental Authority or other entity of whatever nature.

    

    “Plan”
shall
      mean, at any particular time, any employee benefit plan which is covered by
      Title IV of ERISA and in respect of which any Credit Party or a Commonly
      Controlled Entity is (or, if such plan were terminated at such time, would
      under
      Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5)
      of ERISA.

    

    “Pledge
      Agreement”
shall
      mean the pledge agreement dated as of the Closing Date executed by the Credit
      Parties in favor of the Administrative Agent, as amended, modified, restated
      or
      supplemented from time to time in accordance with its terms and the terms
      hereof.

    

    “Prime
      Rate”
shall
      have the meaning set forth in the definition of “Alternate Base
      Rate”.

    

    “Pro
      Forma Basis”
shall
      mean, with
      respect to any transaction, that
      such
      transaction shall be deemed to have occurred as of the first day of the
      twelve-month period ending as of the most recent month end
      ending at least twenty (20) days preceding the date of such transaction.

    

    “Properties”
shall
      have the meaning set forth in Section 3.10(a).

    

    “Purchasing
      Lenders”
shall
      have the meaning set forth in Section 9.6(c).

    

    
      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

    

    

    “Recovery
      Event”
shall
      mean the receipt by the Company and its Subsidiaries of
      any
      cash insurance proceeds or condemnation award payable by reason of theft, loss,
      physical destruction or damage, taking or similar event with respect to any
      Material Property.

    

    “Register”
shall
      have the meaning set forth in Section 9.6(d).

    

    “Reorganization”
shall
      mean, with respect to any Multiemployer Plan, the condition that such Plan
      is in
      reorganization within the meaning of such term as used in Section 4241 of
      ERISA.

    

    “Related
      Fund”
shall
      mean, with respect to any Lender, any fund or trust or entity that invests
      in
      commercial bank loans in the ordinary course of business and is advised or
      managed by (a)
      such
      Lender, (b)
      an
      Affiliate of such Lender, (c)
      any
      other Lender or any Affiliate thereof or (d)
      the
      same investment advisor as any Person described in clauses (a) -
      (c).

    

    “Reportable
      Event”
shall
      mean any of the events set forth in Section 4043(c) of ERISA, other than those
      events as to which the thirty-day notice period is waived under PBGC Reg.
§4043.

    

    “Required
      Lenders”
shall
      mean, at any time, Lenders holding in the aggregate a majority of (i) the
      Commitments (and Participation Interests therein) or (ii) if the Commitments
      have been terminated, the outstanding Loans and Participation Interests
      (including the Participation Interests of the Issuing Lender in any Letters
      of
      Credit and of the Swingline Lender in Swingline Loans); provided,
      however,
      that if
      any Lender shall be a Defaulting Lender at such time, then there shall be
      excluded from the determination of Required Lenders, Obligations (including
      Participation Interests) owing to such Defaulting Lender and such Defaulting
      Lender’s Commitments, or after termination of the Commitments, the principal
      balance of the Obligations owing to such Defaulting Lender.

    

    “Requirement
      of Law”
shall
      mean, as to any Person, the Certificate of Incorporation and By-laws or other
      organizational or governing documents of such Person, and each law, treaty,
      rule
      or regulation or determination of an arbitrator or a court or other Governmental
      Authority, in each case applicable to or binding upon such Person or any of
      its
      Material Property or to which such Person or any of its Material Property is
      subject.

    

    “Responsible
      Officer”
shall
      mean, as to (a) the Company, the President, the Chief Executive Officer, the
      Chief Financial Officer and the Treasurer thereof or (b) any other Credit Party
      or any Subsidiary thereof, the President, the Chief Executive Officer, the
      Chief
      Financial Officer, the Treasurer and any other duly authorized director or
      officer thereof.

    

    
      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

    

    

    “Restricted
      Payments”
      shall
      mean (a) any dividend or other distribution, direct or indirect, on account
      of
      any shares of any class of Capital Stock of any Credit Party or any of its
      Subsidiaries, now or hereafter outstanding, (b) any redemption, retirement,
      sinking fund or similar payment, purchase or other acquisition for value, direct
      or indirect, of any shares of any class of Capital Stock of any Credit Party
      or
      any of its Subsidiaries, now or hereafter outstanding, (c) any payment made
      to
      retire, or to obtain the surrender of, any outstanding warrants, options or
      other rights to acquire shares of any class of Capital Stock of any Credit
      Party
      or any of its Subsidiaries, now or hereafter outstanding, (d) any payment with
      respect to any earnout obligation, (e) any payment or prepayment of principal
      of, premium, if any, or interest on, redemption, purchase, retirement,
      defeasance, sinking fund or similar payment with respect to, any Subordinated
      Indebtedness or (f) the payment by any Credit Party or any of its Subsidiaries
      of any management or consulting fee to any Person or of any salary, bonus or
      other form of compensation to any Person who is directly or indirectly a
      significant partner, shareholder, owner or executive officer of any such Person,
      to the extent such fee, salary, bonus or other form of compensation is either
      not included in the corporate overhead of any Credit Party or such Subsidiary
      or, to the extent such salary, bonus or other form of compensation, is
      reimbursed by the Company.

    

    “Revolver
      Increase”
shall
      have the meaning set forth in Section 2.1.

    

    “Revolver
      Maturity Date”
shall
      mean September 22, 2012.

    

    “Revolving
      Commitment”
shall
      mean, with respect to each Revolving Lender, the commitment of such Revolving
      Lender to make Revolving Loans in an aggregate principal amount at any time
      outstanding up to the amount identified as such Revolving Lender’s “Revolving
      Commitment” on such Lender’s Lender Commitment Letter or in the Register, as
      such amount may be modified in connection with any assignment made in accordance
      with the provisions of Section 9.6(c) or increased (in accordance with Section
      2.1(f)) or reduced from time to time in accordance with the provisions
      hereof.

    

    “Revolving
      Commitment Percentage”
shall
      mean, for each Revolving Lender, the percentage identified as its “Revolving
      Commitment Percentage” on such Lender’s Lender Commitment Letter or in the
      Register, as such percentage may be modified in connection with any assignment
      made in accordance with the provisions of Section 9.6(c).

    

    “Revolving
      Committed Amount”
shall
      have the meaning set forth in Section 2.1.

    

    “Revolving
      Lender”
shall
      mean, as of any date of determination, each Lender with a Revolving Commitment
      greater than $0.

    

    “Revolving
      Loans”
shall
      have the meaning set forth in Section 2.1.

    

    “Revolving
      Note”
or
      “Revolving
      Notes”
shall
      mean the promissory notes of the Borrower in favor of each of the Revolving
      Lenders evidencing the Revolving Loans provided pursuant to Section 2.1(e),
      individually or collectively, as appropriate, as such promissory notes may
      be
      amended, modified, supplemented, extended, renewed or replaced from time to
      time.

    

    “S&P”
shall
      mean Standard & Poor’s Ratings Service, a division of The McGraw Hill
      Companies, Inc. or any successor or rating agency.

    

    
      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

    

    

    “Sanctioned
      Country”
shall
      mean a country subject to a sanctions program identified on the list maintained
      by OFAC and available at http://www.treas.gov/offices/
      eotffc/ofac/sanctions/index.html,
      or as
      otherwise published from time to time.

    

    “Sanctioned
      Person”
shall
      mean (a)
      a
      Person named on the list of “Specially Designated Nationals and Blocked Persons”
maintained by OFAC available at http://www.treas.gov/offices/eotffc/ofac/sdn/index.html,
      or as
      otherwise published from time to time, or (b)
      (i)
      an
      agency of the government of a Sanctioned Country, (ii)
      an
      organization controlled by a Sanctioned Country, or (iii)
      a
      person resident in a Sanctioned Country, to the extent subject to a sanctions
      program administered by OFAC.

    

    “Sarbanes-Oxley”
shall
      mean the Sarbanes-Oxley Act of 2002.

    

    “Scheduled
      Funded Debt Payments”
shall
      mean, as of any date of determination for the Company and its Subsidiaries,
      the
      sum of all scheduled payments of principal on Funded Debt for the applicable
      period ending on the date of determination (including the principal component
      of
      payments due on Capital Leases during the applicable period ending on the date
      of determination).

    

    “Secured
      Hedging Agreement”
shall
      mean any Hedging Agreement between a Credit Party and a Hedging Agreement
      Provider, or any agreement relating to Bank Products between a Credit Party
      and
      an Agent or Affiliate thereof, as amended, modified, restated or supplemented
      from time to time in accordance with its terms.

    

    “Secured
      Party”
shall
      mean each of the Administrative Agent, the Lenders and the Hedging Agreement
      Providers, together with their respective successors and assigns.

    

    “Securities
      Account Control Agreement”
shall
      mean an agreement, among a Credit Party, a securities intermediary, and the
      Administrative Agent, which agreement is or in a form reasonably acceptable
      to
      the Administrative Agent and which provides the Administrative Agent with
“control” (as such term is used in Articles 8 and 9 of the Uniform Commercial
      Code) over the securities account(s) described therein, as the same may be
      as
      amended, modified, extended, restated, replaced, or supplemented from time
      to
      time.

    

    “Securities
      Act”
shall
      mean the Securities Act of 1933, together with any amendment thereto or
      replacement thereof and any rules or regulations promulgated
      thereunder.

    

    “Securities
      Laws”
shall
      mean the Securities Act, the Exchange Act, Sarbanes-Oxley and the applicable
      accounting and auditing principles, rules, standards and practices promulgated,
      approved or incorporated by the SEC or the Public Company Accounting Oversight
      Board, as each of the foregoing may be amended and in effect on any applicable
      date hereunder.

    

    “Security
      Agreement”
shall
      mean the security agreement dated as of the Closing Date executed by the Credit
      Parties in favor of the Administrative Agent, as amended, modified, restated
      or
      supplemented from time to time in accordance with its terms and the terms
      hereof.

    

    
      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

    

    

    “Security
      Documents”
shall
      mean the Security Agreement, the Pledge Agreement, the UK Security Documents,
      the Mortgage Instruments, and such other documents executed and delivered in
      connection with the grant, attachment and perfection of the Administrative
      Agent’s security interests and liens arising thereunder, including, without
      limitation, UCC financing statements.

    

    “Single
      Employer Plan”
shall
      mean any Plan which is not a Multiemployer Plan.

    

    “Social
      Security Act”
      shall
      mean the Social Security Act as set forth in Title 42 of the United States
      Code,
      as amended, and any successor statute thereto, as interpreted by the rules
      and
      regulations issued thereunder, in each case as in effect from time to time.
      References to sections of the Social Security Act shall be construed also to
      refer to any successor sections.

    

    “Solvent”
shall
      mean, with respect to any Person on any date (a) the fair saleable value of
      such
      Person’s assets, measured on a going concern basis, exceeds all probable
      liabilities of such Person, including contingent liabilities and those
      liabilities to be incurred pursuant to this Credit Agreement, or (b) such
      Person (i) does not have unreasonably small capital in relation to the
      business in which it is or proposes to be engaged, (ii) has not incurred,
      or believes that it will incur after giving effect to the transactions
      contemplated by this Credit Agreement, debts beyond its ability to pay such
      debts as they become due, (iii) has not suspended making payments on any of
      its
      debts unless subject to a good faith dispute or (iv) by reason of actual or
      anticipated financial difficulties, has not commenced negotiations with one
      or
      more of its creditors in order to reschedule the payment of such
      indebtedness.

    

    “SRL”
shall
      mean Orthofix SRL/DMO, an Italian corporation.

    

    “Subordinated
      Indebtedness”
shall
      mean any Indebtedness incurred by any Credit Party that is (a) specifically
      subordinated in right of payment and performance to the prior payment of the
      Credit Party Obligations on terms reasonably acceptable to the Administrative
      Agent and (b) evidenced by promissory notes, to the extent such Indebtedness
      is
      owed to another Credit Party, which promissory notes shall be pledged to the
      Administrative Agent as Collateral for the Credit Party
      Obligations.

    

    “Subsidiary”
shall
      mean (a) as to any Person other than the Company, a corporation, partnership,
      limited liability company or other entity of which shares of stock or other
      ownership interests having ordinary voting power (other than stock or such
      other
      ownership interests having such power only by reason of the happening of a
      contingency) to elect a majority of the board of directors or other managers
      of
      such corporation, partnership, limited liability company or other entity are
      at
      the time owned, or the management of which is otherwise controlled, directly
      or
      indirectly through one or more intermediaries, or both, by such Person, and
      (b)
      as to the Company, a corporation, partnership, limited liability company or
      other entity of which shares of stock or other ownership interest the Company
      owns at the time directly or indirectly through one or more intermediaries,
      or
      both, of greater than 50%. Unless otherwise qualified, all references to a
      “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary
      or Subsidiaries of the Company.

    

    
      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

    

    

    “Subsidiary
      Guarantor”
shall
      have the meaning set forth in the first paragraph of this
      Agreement.

    

    “Survey”
shall
      mean any maps or plats of an as-built survey of the site of a Mortgaged
      Property, which maps or plats and the surveys on which they are based shall
      be
      sufficient to delete any standard printed survey exception contained in the
      applicable title policy and be made in accordance with the Minimum Standard
      Detail Requirements for Land Title Surveys jointly established and adopted
      by
      the American Land Title Association and the American Congress on Surveying
      and
      Mapping in 2005, and, without limiting the generality of the foregoing, there
      shall be surveyed and shown on such maps, plats or surveys the following: (a)
      the locations on such sites of all the buildings, structures and other
      improvements and the established building setback lines; (b) the lines of
      streets abutting the sites and width thereof; (c) all access and other easements
      appurtenant to the sites necessary to use the sites; (d) all roadways, paths,
      driveways, easements, encroachments and overhanging projections and similar
      encumbrances affecting the site, whether recorded, apparent from a physical
      inspection of the sites or otherwise known to the surveyor; (e) any
      encroachments on any adjoining property by the building structures and
      improvements on the sites; and (f) if the site is described as being on a filed
      map, a legend relating the survey to said map.

    

    “Swiftsure”
shall
      have the meaning set forth in the first paragraph of this
      Agreement.

    

    “Swingline
      Commitment”
shall
      mean the commitment of the Swingline Lender to make Swingline Loans in an
      aggregate principal amount at any time outstanding up to the Swingline Committed
      Amount, and the commitment of the Revolving Lenders to purchase participation
      interests in the Swingline Loans as provided in Section 2.4(b)(ii), as such
      amounts may be reduced from time to time in accordance with the provisions
      hereof.

    

    “Swingline
      Committed Amount”
shall
      have the meaning set forth in Section 2.4(a).

    

    “Swingline
      Lender”
shall
      mean Wachovia.

    

    “Swingline
      Loan”
or
      “Swingline
      Loans”
shall
      have the meaning set forth in Section 2.4(a).

    

    “Swingline
      Note”
shall
      mean the promissory note of the Borrower in favor of the Swingline Lender
      evidencing the Swingline Loans provided pursuant to Section 2.4(d), as such
      promissory note may be amended, modified, supplemented, extended, renewed or
      replaced from time to time.

    

    “Target”
shall
      have the meaning set forth in the definition of “Permitted
      Acquisition”.

    

    
      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

    

    

    “Tax
      Structure Documents”
shall
      mean a collective reference to the following documents: (a)
      Offer
      Letter dated December 30, 2003 from Colgate to UK Ltd, (b)
      Amendment Agreement dated October 25, 2005 between Colgate and UK Ltd,
      (c)
      Written
      Notification of Termination and Offer of Amended Terms dated October 25, 2005
      from Colgate to UK Ltd, (d)
      Acknowledgment of Termination dated October 25, 2005 from UK Ltd to Colgate,
      (e)
      Promissory Note in the principal amount of $110,546,815 dated October 25, 2005
      by UK Ltd for the benefit of Colgate, (f)
      Debenture Receivable Sale and Purchase Agreement dated October 25, 2005 between
      Colgate and Victory (“Receivable
      Sale”),
      (g)
      1,999,999 ordinary shares of Victory issued to Colgate as consideration for
      Receivable Sale, (h)
      Share
      Subscription Agreement dated October 25, 2005 between the Borrower and
      Swiftsure, (i)
      Subscription Request Letter dated October 25, 2005 from Swiftsure to the
      Borrower, (j)
      Acknowledgment of Subscription Request Letter dated October 25, 2005 by the
      Borrower to Swiftsure (“Subscription
      Request Letter”),
      (k)
      999
      ordinary shares of Swiftsure issued to the Borrower in connection with the
      Subscription Request Letter, (l)
      Offer
      Letter dated October 26, 2005 from Victory to Swiftsure, (m)
      Guarantee dated October 26, 2005 by the Borrower for the
      benefit
      of Victory, (n)
      Share
      Sale and Purchase Agreement
      dated
      October 26, 2005 between the Borrower and Swiftsure (“Share
      Sale and Purchase Agreement”),
      (o)
      Stock
      Transfer Form dated October 26, 2005 relating to the Borrower’s sale of one
      share of UK Ltd to Swiftsure (“Stock
      Transfer Form”),
      (p)
      one
      ordinary share of UK Ltd issued to Swiftsure in connection with the Stock
      Transfer Form, (q)
      one
      ordinary shares of Swiftsure issued to the Borrower in connection with the
      Share
      Sale and Purchase Agreement and (r)
      any
      other agreement entered into to implement the terms and arrangements
      contemplated by the foregoing documents that is reasonably acceptable to the
      Administrative Agent.

    

    “Taxes”
shall
      have the meaning set forth in Section 2.18.

    

    “Term
      Loan”
shall
      have the meaning set forth in Section 2.2(a).

    

    “Term
      Loan Commitment”
shall
      mean, with respect to each Term Loan Lender, the commitment of such Term Loan
      Lender to make its portion of the Term Loan in a principal amount equal to
      such
      Term Loan Lender’s Term Loan Commitment Percentage of the Term Loan Committed
      Amount (and for purposes of making determinations of Required Lenders hereunder
      after the Closing Date, the principal amount outstanding on the Term
      Loan).

    

    “Term
      Loan Commitment Percentage”
shall
      mean, for any Term Loan Lender, the percentage identified as its Term Loan
      Commitment Percentage on such Lender’s Lender Commitment Letter, as such
      percentage may be modified in connection with any Incremental Term Facility
      in
      accordance with the provisions of Section 2.2(e) or any assignment made in
      accordance with the provisions of Section 9.6(c).

    

    “Term
      Loan Committed Amount”
shall
      have the meaning set forth in Section 2.2(a).

    

    “Term
      Loan Lender”
shall
      mean, as of any date of determination, each Lender that holds a portion of
      the
      outstanding Term Loan.

    

    “Term
      Loan Maturity Date”
shall
      mean September 22, 2013.

    

    “Term
      Note” or “Term Notes”
shall
      mean the promissory notes of the Borrower in favor of each of the Term Loan
      Lenders evidencing the portion of the Term Loan provided pursuant to
      Section 2.2(d), individually or collectively, as appropriate, as such
      promissory notes may be amended, modified, restated, supplemented, extended,
      renewed or replaced from time to time.

    

    
      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

    

    

    “Title
      Insurance Company”
shall
      mean Chicago Title Insurance Company or any other title insurance company
      approved by the Administrative Agent in its reasonable discretion.

    

    “Trademark
      License”
shall
      means any agreement, written or oral, providing for the grant by or to the
      Borrower or any of its Subsidiaries which are Credit Parties of any right to
      use
      any Trademark, including, without limitation, any thereof referred to in
Schedule
      3.16.

    

    “Trademarks”
shall
      mean (a) all trademarks, trade names, corporate names, company names, business
      names, fictitious business names, trade dress and service marks, logos and
      other
      source or business identifiers, and the goodwill associated therewith, now
      existing or hereafter adopted or acquired, all registrations and recordings
      thereof, and all applications in connection therewith, whether in the United
      States Patent and Trademark Office or in any similar office or agency of the
      United States, any State thereof or any other country or any political
      subdivision thereof, or otherwise, including, without limitation, any thereof
      referred to in Schedule
      3.16,
      and
      (b) all renewals thereof, including, without limitation, any thereof
      referred to in Schedule
      3.16.

    

    “Tranche”
shall
      mean the collective reference to LIBOR Rate Loans whose Interest Periods begin
      and end on the same day. A Tranche may sometimes be referred to as a “LIBOR
      Tranche”.

    

    “Transfer
      Effective Date”
shall
      have the meaning set forth in each Assignment Agreement.

    

    “TRICARE”
means
      the United States Department of Defense healthcare program for service families
      (including TRICARE Prime, TRICARE Extra and TRICARE Standard), and any successor
      or predecessor thereof, including without limitation, CHAMPUS.

    

    “Type”
shall
      mean, as to any Loan, its nature as an Alternate Base Rate Loan or LIBOR Rate
      Loan, as the case may be.

    

    “UK
      Ltd”
      shall
      have the meaning set forth in the first paragraph of this
      Agreement.

    

    “UK
      Security Documents”
shall
      mean (a)
      that
      certain pledge agreement dated as of the Closing Date executed by Colgate in
      favor of the Administrative Agent with respect to the Capital Stock of Victory,
      (b)
      that
      certain pledge agreement dated as of the Closing Date executed by the Borrower
      in favor of the Administrative Agent with respect to the Capital Stock of
      Swiftsure, (c)
      that
      certain pledge agreement dated as of the Closing Date executed by Swiftsure
      in
      favor of the Administrative Agent with respect to the Capital Stock of UK Ltd,
      (d)
      that
      certain debenture dated as of the Closing Date executed by Colgate in favor
      of
      the Administrative Agent, (e)
      that
      certain debenture dated as of the Closing Date executed by Victory in favor
      of
      the Administrative Agent, (f)
      that
      certain debenture dated as of the Closing Date executed by Swiftsure in favor
      of
      the Administrative Agent and (g)
      that
      certain debenture dated as of the Closing Date executed by UK Ltd in favor
      of
      the Administrative Agent, in each case as amended, modified, restated or
      supplemented from time to time in accordance with its terms and the terms
      hereof.

    

    
      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

    

    

    “U.S.”
or
      “United
      States”
shall
      mean the United States of America.

    

    “Victory”
shall
      have the meaning set forth in the first paragraph of this
      Agreement.

    

    “Voting
      Stock”
shall
      mean, with respect to any Person, Capital Stock issued by such Person the
      holders of which are ordinarily, in the absence of contingencies, entitled
      to
      vote for the election of directors (or persons performing similar functions)
      of
      such Person, even though the right so to vote may be or have been suspended
      by
      the happening of such a contingency.

    

    “Wachovia”
shall
      mean Wachovia Bank, National Association, a national banking association,
      together with its successors and/or assigns.

    

    “WCM”
shall
      mean Wachovia Capital Markets, LLC.

    

    “Works”
shall
      mean all works which are subject to copyright protection pursuant to
      Title 17 of the United States Code.

    

    
      	 	
              Section
                1.2

            	
              Other
                Definitional Provisions.

            

    

    

    (a)    Unless
      otherwise specified therein, all terms defined in this Agreement shall have
      such
      defined meanings when used in the Notes or other Credit Documents or any
      certificate or other document made or delivered pursuant hereto.

    

    (b)    The
      words
“hereof”, “herein” and “hereunder” and words of similar import when used in this
      Agreement shall refer to this Agreement as a whole and not to any particular
      provision of this Agreement, and Section, subsection, Schedule and Exhibit
      references are to this Agreement unless otherwise specified.

    

    (c)    The
      meanings given to terms defined herein shall be equally applicable to both
      the
      singular and plural forms of such terms.

    

    
      	 	
              Section
                1.3

            	
              Accounting
                Terms.

            

    

    

    Unless
      otherwise specified herein, all accounting terms used herein shall be
      interpreted, all accounting determinations hereunder shall be made, and all
      financial statements required to be delivered hereunder shall be prepared in
      accordance with GAAP applied on a basis consistent with the most recent audited
      consolidated financial statements of the Company delivered to the Lenders;
      provided
      that, if
      the Borrower notifies the Administrative Agent that it wishes to amend any
      covenant in Section 5.9 to eliminate the effect of any change in GAAP on the
      operation of such covenant (or if the Administrative Agent notifies the Borrower
      that the Required Lenders wish to amend Section 5.9 for such purpose), then
      the
      compliance with such covenant shall be determined on the basis of GAAP in effect
      immediately before the relevant change in GAAP became effective, until either
      such notice is withdrawn or such covenant is amended in a manner satisfactory
      to
      the Borrower and the Required Lenders.

    

    
      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

    

    

    The
      Borrower shall deliver to the Administrative Agent and each Lender at the same
      time as the delivery of any annual or quarterly financial statements given
      in
      accordance with the provisions of Section 5.1, (a)
      a
      description in reasonable detail of any material change in the application
      of
      accounting principles employed in the preparation of such financial statements
      from those applied in the most recently preceding quarterly or annual financial
      statements as to which no objection shall have been made in accordance with
      the
      provisions above and (b)
      a
      reasonable estimate of the effect on the financial statements on account of
      such
      changes in application.

    

    Notwithstanding
      the above, the parties hereto acknowledge and agree that, for purposes of all
      calculations made in determining compliance for any applicable period with
      the
      financial covenants set forth in Section 5.9 (including without limitation
      for
      purposes of the definition of “Pro Forma Basis” set forth in Section 1.1),
      after consummation of any Permitted Acquisition, (i) income
      statement items and other balance sheet items (whether positive or negative)
      attributable to the Target acquired in such transaction shall be included in
      such calculations to the extent relating to such applicable period, and
      (ii)
      Indebtedness of a Target that is retired in connection with a Permitted
      Acquisition shall be excluded from such calculations and deemed to have been
      retired as of the first day of such applicable period,
      in each
      case in accordance with Regulation
      S-X under the Securities Act, as amended, applicable to a Registration Statement
      under such Act on Form S-1.

     

    ARTICLE
      II

    

    THE
      LOANS; AMOUNT AND TERMS

    

    
      	 	
              Section
                2.1

            	
              Revolving
                Loans; Revolver Increase.

            

    

    

    (a)    Revolving
      Commitment.
      During
      the Commitment Period, subject to the terms and conditions hereof, each
      Revolving Lender severally, but not jointly, agrees to make revolving credit
      loans (“Revolving
      Loans”)
      to the
      Borrower from time to time in an aggregate principal amount of up to
FORTY-FIVE
      MILLION
      DOLLARS
      ($45,000,000)
      (as such
      aggregate maximum amount may be reduced from time to time as provided in Section
      2.6, the “Revolving
      Committed Amount”)
      for
      the purposes hereinafter set forth; provided,
      however,
      that
      (i) with regard to each Revolving Lender individually, the sum of such Revolving
      Lender’s Revolving Commitment Percentage of outstanding Revolving Loans
plus
      such
      Revolving Lender’s Revolving Commitment Percentage of outstanding Swingline
      Loans plus
      such
      Revolving Lender’s Revolving Commitment Percentage of outstanding LOC
      Obligations shall not exceed such Revolving Lender’s Revolving Commitment and
      (ii) with regard to the Revolving Lenders collectively, the sum of the
      outstanding Revolving Loans plus
      outstanding Swingline Loans plus
      outstanding LOC Obligations shall not exceed the Revolving Committed Amount.
      Revolving Loans may consist of Alternate Base Rate Loans or LIBOR Rate Loans,
      or
      a combination thereof, as the Borrower may request, and may be repaid or prepaid
      and reborrowed in accordance with the provisions hereof; provided,
      however,
      Revolving Loans made on the Closing Date or on any of the three (3)
      Business Days following the Closing Date may only consist of Alternate Base
      Rate
      Loans. LIBOR Rate Loans shall be made by each Revolving Lender at its LIBOR
      Lending Office and Alternate Base Rate Loans at its Domestic Lending
      Office.

    

    
      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

    

    

    (b)    Revolving
      Loan Borrowings.

    

    (i)    
Notice
      of Borrowing.
      The
      Borrower shall request a Revolving Loan borrowing by written notice (a
“Notice
      of Borrowing”)
      substantially in the form of the notice attached as Schedule
      2.1(b)(i)
      (or
      telephone notice promptly confirmed by delivery to the Administrative Agent
      of a
      Notice of Borrowing by fax or other electronic notice with confirmed receipt
      from the recipient) to the Administrative Agent not later than 12:00 Noon
      (Charlotte, North Carolina time) on the Business Day of the requested borrowing
      in the case of Alternate Base Rate Loans, and on the third Business Day prior
      to
      the date of the requested borrowing in the case of LIBOR Rate Loans. Each such
      request for borrowing shall be irrevocable and shall specify (A) that a
      Revolving Loan is requested, (B) the date of the requested borrowing (which
      shall be a Business Day), (C) the aggregate principal amount to be borrowed
      on
      such date, (D) whether the borrowing shall be comprised of Alternate Base Rate
      Loans, LIBOR Rate Loans or a combination thereof, and (E) if LIBOR Rate Loans
      are requested, the Interest Period(s) therefore. If the Borrower shall fail
      to
      specify in any such Notice of Borrowing (I) an applicable Interest Period in
      the
      case of a LIBOR Rate Loan, then such notice shall be deemed to be a request
      for
      an Interest Period of one month, or (II) the type of Revolving Loan requested,
      then such notice shall be deemed to be a request for an Alternate Base Rate
      Loan
      hereunder. The Administrative Agent shall give notice to each Revolving Lender
      promptly upon receipt of each Notice of Borrowing, of the contents thereof
      and
      each such Revolving Lender’s share thereof. 

    

    (ii)    Minimum
      Amounts.
      Each
      Revolving Loan shall be in a minimum aggregate amount of $1,000,000 and in
      integral multiples of $500,000 in excess thereof (or the remaining amount of
      the
      Revolving Committed Amount, if less). 

    

    (iii)   Advances.
      Each
      Revolving Lender will make its Revolving Commitment Percentage of each Revolving
      Loan borrowing available to the Administrative Agent for the account of the
      Borrower at the office of the Administrative Agent specified in Section 9.2,
      or
      at such other office as the Administrative Agent may designate in writing,
      by
      2:00 P.M. (Charlotte, North Carolina time) on the date specified in the
      applicable Notice of Borrowing in Dollars and in funds immediately available
      to
      the Administrative Agent. Such borrowing will then be made available to the
      Borrower by the Administrative Agent by crediting the account of the Borrower
      designated in the Account Designation Letter (or as otherwise agreed by the
      Borrower and the Administrative Agent) with the aggregate of the amounts made
      available to the Administrative Agent by the Revolving Lenders and in like
      funds
      as received by the Administrative Agent.

    

    
      
        
          
          

        

        
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    (c)    Repayment.
      The
      principal amount of all Revolving Loans shall be due and payable in full on
      the
      Revolver Maturity Date, unless accelerated sooner pursuant to
      Section 7.2.

    

    (d)    Interest.
      Subject
      to the provisions of Section 2.9, Revolving Loans shall bear interest as
      follows:

    

    (i)    
Alternate
      Base Rate Loans.
      During
      such periods as Revolving Loans shall be comprised of Alternate Base Rate Loans,
      each such Alternate Base Rate Loan shall bear interest at a per annum rate
      equal
      to the sum of the Alternate Base Rate plus
      the
      Applicable Percentage; and

    

    (ii)    LIBOR
      Rate Loans.
      During
      such periods as Revolving Loans shall be comprised of LIBOR Rate Loans, each
      such LIBOR Rate Loan shall bear interest at a per annum rate equal to the sum
      of
      the LIBOR Rate plus
      the
      Applicable Percentage.

    

    Interest
      on Revolving Loans shall be payable in arrears on each Interest Payment
      Date.

    

    (e)    Revolving
      Notes; Covenant to Pay.
      Each
      Revolving Lender’s Revolving Commitment shall be evidenced by a duly executed
      promissory note of the Borrower to such Revolving Lender in substantially the
      form of Schedule
      2.1(e).
      The
      Borrower covenants and agrees to pay the Revolving Loans in accordance with
      the
      terms of this Agreement.

    

    (f)    
Revolver
      Increase.
      Subject
      to the terms and conditions set forth herein, the Borrower shall have the right,
      at any time and from time to time prior to the Revolver Maturity Date, to incur
      additional Indebtedness under this Credit Agreement in the form of an increase
      to the Revolving Committed Amount (each a “Revolver
      Increase”)
      by an
      aggregate amount of up to (a)
      ONE
      HUNDRED TWENTY-FIVE MILLION DOLLARS ($125,000,000) less
      (b)
      the sum
      of (i)
      the
      aggregate amount of any prior Incremental Term Facility established pursuant
      to
      Section 2.2(e) plus
      (ii)
      the
      aggregate amount of any prior Revolver Increases established pursuant to this
      Section 2.1(f). The following terms and conditions shall apply to each Revolver
      Increase: (i)
      the
      loans made under any such Revolver Increase (each an “Additional
      Revolving Loan”)
      shall
      constitute Credit Party Obligations and will be secured and guaranteed with
      the
      other Credit Party Obligations on a pari passu basis, (ii)
      the
      proceeds of any Additional Revolving Loan will be used for the purposes set
      forth in Section 3.11, (iii)
      the
      Borrower shall execute a Revolving Note in favor of any new Lender or any
      existing Lender requesting a Revolving Note whose Revolving Commitment is
      created or increased, (iv)
      the
      conditions to Extensions of Credit in Section 4.2 shall have been satisfied,
      (v)
      the
      Administrative Agent shall have received an opinion or opinions (including,
      if
      reasonably requested by the Administrative Agent, local counsel opinions) of
      counsel for the Credit Parties, addressed to the Administrative Agent and the
      Lenders, in form and substance acceptable to the Administrative Agent,
      (vi)
      any
      such Revolver Increase shall be in a minimum principal amount of $15,000,000
      or,
      if less, the maximum remaining amount permitted pursuant to this Section 2.1(f),
      (vii)
      if the
      interest rate margin on any Revolver Increase would be more than the Applicable
      Percentage for the existing Revolving Loans, the Applicable Percentage on the
      existing Revolving Loans shall be increased such that the Applicable Percentage
      on the existing Revolving Loans is equal to the interest rate margin on such
      Revolver Increase, and (viii)
      the
      Administrative Agent shall have received from the Borrower updated financial
      projections for the remainder of the projection term set forth in Section 3.1(e)
      and an officer’s certificate, in each case in form and substance reasonably
      satisfactory to the Administrative Agent, demonstrating that, after giving
      effect to any such Revolver Increase on a Pro Forma Basis, the Borrower will
      be
      in compliance with the financial covenants set forth in Section 5.9 and no
      Default or Event of Default shall exist. No existing Lender shall have any
      obligation to provide all or any portion of the Revolver Increase. The
      Administrative Agent is authorized to enter into, on behalf of the Lenders,
      any
      amendment to this Credit Agreement or any other Credit Document as may be
      necessary to incorporate the terms of any new Revolver Increase
      therein.

    

    
      
        
          
          

        

        
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              Section
                2.2

            	
              Term
                Loan Facility; Incremental Term Loan.

            

    

    

    (a)    Term
      Loan.
      Subject
      to the terms and conditions hereof and in reliance upon the representations
      and
      warranties set forth herein, each Term Loan Lender severally agrees to make
      available to the Borrower on the Closing Date, by transfer of funds as directed
      by the Administrative Agent to the Borrower’s account set forth in the Account
      Designation Letter, such Term Loan Lender’s Term Loan Commitment Percentage of a
      term loan in Dollars (the “Term
      Loan”)
      in the
      aggregate principal amount of THREE
      HUNDRED THIRTY MILLION DOLLARS ($330,000,000)
      (the
“Term
      Loan Committed Amount”)
      for
      the purposes hereinafter set forth. The Term Loan may consist of Alternate
      Base
      Rate Loans or LIBOR Rate Loans, or a combination thereof, as the Borrower may
      request; provided
      that on
      the Closing Date the Term Loan shall only consist of Alternate Base Rate Loans.
      Amounts repaid or prepaid on the Term Loan may not be reborrowed.

    

    (b)    Repayment
      of Term Loan.
      The
      principal outstanding amount of the Term Loan as of the Closing Date shall
      be
      repaid in twenty-eight (28) consecutive quarterly installments as follows,
      unless accelerated sooner pursuant to Section 7.2:

    

    
      	
              Principal
                Amortization

              Payment
                Date

            	
              Term
                Loan

              Principal
                Amortization Payment

            
	
              December 31,
                2006

            	
              $825,000

            
	
              March 31,
                2007

            	
              $825,000

            
	
              June
                30, 2007

            	
              $825,000

            
	
              September
                30, 2007

            	
              $825,000

            
	
              December
                31, 2007

            	
              $825,000

            

    

    

    

    
      
        
          
          

        

        
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              Principal
                Amortization

              Payment
                Date

            	
              Term
                Loan

              Principal
                Amortization Payment

            
	
              March 31,
                2008

            	
              $825,000

            
	
              June
                30, 2008

            	
              $825,000

            
	
              September
                30, 2008

            	
              $825,000

            
	
              December 31,
                2008

            	
              $825,000

            
	
              March 31,
                2009

            	
              $825,000

            
	
              June
                30, 2009

            	
              $825,000

            
	
              September
                30, 2009

            	
              $825,000

            
	
              December 31,
                2009

            	
              $825,000

            
	
              March 31,
                2010

            	
              $825,000

            
	
              June
                30, 2010

            	
              $825,000

            
	
              September
                30, 2010

            	
              $825,000

            
	
              December 31,
                2010

            	
              $825,000

            
	
              March 31,
                2011

            	
              $825,000

            
	
              June
                30, 2011

            	
              $825,000

            
	
              September
                30, 2011

            	
              $825,000

            
	
              December 31,
                2011

            	
              $825,000

            
	
              March 31,
                2012

            	
              $825,000

            
	
              June
                30, 2012

            	
              $825,000

            
	
              September
                30, 2012

            	
              $825,000

            
	
              December 31,
                2012

            	
              $77,550,000

            
	
              March
                31, 2013

            	
              $77,550,000

            
	
              June
                30, 2013

            	
              $77,550,000

            
	
              Term
                Loan Maturity Date

            	
              The
                remainder of the outstanding Term
                Loan

            

    

    

    (c)    Interest
      on the Term Loan.
      Subject
      to the provisions of Section 2.9, the Term Loan shall bear interest as
      follows:

    

    (i)    
Alternate
      Base Rate Loans.
      During
      such periods as the Term Loan shall be comprised of Alternate Base Rate Loans,
      each such Alternate Base Rate Loan shall bear interest at a per annum rate
      equal
      to the sum of the Alternate Base Rate plus
      the
      Applicable Percentage; and

    

    
      
        
          
          

        

        
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    (ii)    LIBOR
      Rate Loans.
      During
      such periods as the Term Loan shall be comprised of LIBOR Rate Loans, each
      such
      LIBOR Rate Loan shall bear interest at a per annum rate equal to the sum of
      the
      LIBOR Rate plus
      the
      Applicable Percentage.

    

    Interest
      on the Term Loan shall be payable in arrears on each Interest Payment
      Date.

    

    (d)    Term
      Notes.
      Each
      Term Loan Lender’s Term Loan Commitment Percentage of the Term Loan Committed
      Amount shall be evidenced by a duly executed promissory note of the Borrower
      to
      such Term Loan Lender in substantially the form of Schedule 2.2(d).

    

    (e)    Incremental
      Term Loan.
      Subject
      to the terms and conditions set forth herein, the Borrower shall have the right,
      at any time and from time to time prior to the Term Loan Maturity Date, to
      incur
      additional Indebtedness under this Credit Agreement in the form of a term loan
      (each an “Incremental
      Term Facility”)
      by an
      aggregate amount of up to (a)
      ONE
      HUNDRED TWENTY-FIVE MILLION DOLLARS ($125,000,000) less
      (b)
      the sum
      of (i)
      the
      aggregate amount of increases in the Revolving Committed Amount pursuant to
      any
      Revolver Increase plus
      (ii)
      the
      aggregate amount of any prior Incremental Term Facilities established pursuant
      to this Section 2.2(e). The following terms and conditions shall apply to each
      Incremental Term Facility: (i)
      the
      loans made under any such Incremental Term Facility (each an “Additional
      Term Loan”)
      shall
      constitute Credit Party Obligations and will be secured and guaranteed with
      the
      other Credit Party Obligations on a pari passu basis, (ii)
      any
      such Incremental Term Facility shall have a maturity date no sooner than, and
      a
      weighted average life to maturity no shorter than, the Term Loan Maturity Date
      and the weighted average life to maturity of the Term Loans at such time,
      respectively, (iii)
      any
      such Incremental Term Facility shall be entitled to the same voting rights
      as
      the existing Term Loans and shall be entitled to receive proceeds of prepayments
      on a pro rata basis with the existing Term Loans, (iv)
      any
      such Incremental Term Facility shall be obtained from existing Lenders or from
      other banks, financial institutions or investment funds, (v)
      any
      such Incremental Term Facility shall be in a minimum principal amount of
      $25,000,000 and
      integral multiples of $1,000,000 in excess thereof, or, if less, the maximum
      remaining amount permitted pursuant to this Section 2.2(e), (vi)
      the
      proceeds of any Additional Term Loan will be used for the purposes set forth
      in
      Section 3.11, (vii)
      the
      Borrower shall execute a Term Note in favor of any new Lender or any existing
      Lender requesting a Term Note whose Term Loan Committed Amount is created or
      increased, (viii)
      the
      conditions to Extensions of Credit in Section 4.2 shall have been satisfied,
      (ix)
      the
      Administrative Agent shall have received an opinion or opinions (including,
      if
      reasonably requested by the Administrative Agent, local counsel opinions) of
      counsel for the Credit Parties, addressed to the Administrative Agent and the
      Lenders, in form and substance reasonably acceptable to the Administrative
      Agent, (x)
      if the
      interest rate margin on any Incremental Term Facility would be more than 0.25%
      greater than the Applicable Percentage for the existing Term Loan, the
      Applicable Percentage on the existing Term Loan shall be increased such that
      the
      Applicable Percentage on the existing Term Loan is 0.25% lower than the interest
      rate margin on the Incremental Term Facility, and (xi)
      the
      Administrative Agent shall have received from the Borrower updated financial
      projections for the remainder of the initial projection term set forth in
      Section 3.1 and an officer’s certificate, in each case in form and substance
      reasonably satisfactory to the Administrative Agent, demonstrating that, after
      giving effect to any such Incremental Term Facility on a Pro Forma Basis, the
      Borrower will be in compliance with the financial covenants set forth in Section
      5.9 and no Default or Event of Default shall exist. No existing Lender shall
      have any obligation to provide all or any portion of the Incremental Term
      Facility. The Administrative Agent is authorized to enter into, on behalf of
      the
      Lenders, any amendment to this Credit Agreement or any other Credit Document
      as
      may be necessary to incorporate the terms of any new Incremental Term Facility
      therein.

    

    
      
        
          
          

        

        
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              Section
                2.3

            	
              Letter
                of Credit Subfacility.

            

    

    

    (a)    Issuance.
      Subject
      to the terms and conditions hereof and of the LOC Documents, if any, and any
      other terms and conditions which the Issuing Lender may reasonably require,
      during the Commitment Period the Issuing Lender shall issue, and the Revolving
      Lenders shall participate in, Letters of Credit for the account of the Borrower
      from time to time upon request in a form acceptable to the Issuing Lender;
      provided,
      however,
      that
      (i) the aggregate amount of LOC Obligations shall not at any time exceed
SEVEN
      MILLION FIVE HUNDRED THOUSAND DOLLARS ($7,500,000)
      (the
“LOC
      Committed Amount”),
      (ii)
      the sum of outstanding Revolving Loans plus
      outstanding Swingline Loans plus
      outstanding LOC Obligations shall not at any time exceed the Revolving Committed
      Amount, (iii) all Letters of Credit shall be denominated in U.S. Dollars and
      (iv) Letters of Credit shall be issued for lawful corporate purposes and may
      be
      issued as standby letters of credit, including in connection with workers’
compensation and other insurance programs. Except as otherwise expressly agreed
      upon by all the Revolving Lenders, no Letter of Credit shall have an original
      expiry date more than twelve (12) months from the date of issuance; provided,
      however,
      so long
      as no Default or Event of Default has occurred and is continuing and subject
      to
      the other terms and conditions to the issuance of Letters of Credit hereunder,
      the expiry dates of Letters of Credit may be extended annually or periodically
      from time to time at the request of the Borrower or by operation of the terms
      of
      the applicable Letter of Credit to a date not more than twelve (12) months
      from
      the date of extension; provided,
      further,
      that no
      Letter of Credit, as originally issued or as extended, shall have an expiry
      date
      extending beyond the Revolver Maturity Date. Each Letter of Credit shall comply
      with the related LOC Documents. The issuance and expiry date of each Letter
      of
      Credit shall be a Business Day. Any Letters of Credit issued hereunder shall
      be
      in a minimum original face amount of $100,000. Wachovia shall be the Issuing
      Lender on all Letters of Credit issued on or after the Closing Date. In the
      event and to the extent that the provisions of any LOC Document shall conflict
      with this Agreement, the provisions of this Agreement shall govern. The Issuing
      Lender shall make any Letter of Credit issued hereunder available to the
      Borrower at its office referred to in Section 9.2 or as otherwise agreed with
      the Borrower in connection with such issuance. 

    

    
      
        
          
          

        

        
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    (b)    Notice
      and Reports.
      The
      request for the issuance of a Letter of Credit shall be submitted to the Issuing
      Lender at least five (5) Business Days prior to the requested date of issuance.
      The Issuing Lender will promptly upon request of the Administrative Agent
      provide to the Administrative Agent for dissemination to the Revolving Lenders
      a
      detailed report specifying the Letters of Credit which are then issued and
      outstanding and any activity with respect thereto which may have occurred since
      the date of any prior report, and including therein, among other things, the
      account party, the beneficiary, the face amount, expiry date as well as any
      payments or expirations which may have occurred. 

    

    (c)    Participations.
      Each
      Revolving Lender upon issuance of a Letter of Credit shall be deemed to have
      purchased without recourse a risk participation from the Issuing Lender in
      such
      Letter of Credit and the obligations arising thereunder and any collateral
      relating thereto, in each case in an amount equal to its Revolving Commitment
      Percentage of the obligations under such Letter of Credit and shall absolutely,
      unconditionally and irrevocably assume, as primary obligor and not as surety,
      and be obligated to pay to the Issuing Lender therefore and discharge when
      due,
      its Revolving Commitment Percentage of the obligations arising under such Letter
      of Credit. Without limiting the scope and nature of each Revolving Lender’s
      participation in any Letter of Credit, to the extent that the Issuing Lender
      has
      not been reimbursed as required hereunder or under any LOC Document, each such
      Revolving Lender shall pay to the Issuing Lender its Revolving Commitment
      Percentage of such unreimbursed drawing in same day funds on the day of
      notification by the Issuing Lender of an unreimbursed drawing pursuant to the
      provisions of subsection (d) hereof. The obligation of each Revolving Lender
      to
      so reimburse the Issuing Lender shall be absolute and unconditional and shall
      not be affected by the occurrence of a Default, an Event of Default or any
      other
      occurrence or event. Any such reimbursement shall not relieve or otherwise
      impair the obligation of the Borrower to reimburse the Issuing Lender under
      any
      Letter of Credit, together with interest as hereinafter provided.

    

    
      
        
          
          

        

        
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    (d)    Reimbursement.
      In the
      event of any drawing under any Letter of Credit, the Issuing Lender will
      promptly notify the Borrower and the Administrative Agent. The Borrower shall
      reimburse the Issuing Lender on the day of drawing under any Letter of Credit
      (with the proceeds of a Revolving Loan obtained hereunder or otherwise) in
      same
      day funds as provided herein or in the LOC Documents. If the
      Borrower shall fail to reimburse the Issuing Lender as provided herein, the
      unreimbursed amount of such drawing shall bear interest at a per annum rate
      equal to the Alternate Base Rate plus
      the
      Applicable Percentage for Revolving Loans that are Alternate Base Rate Loans
      plus
      two
      percent (2%). Unless the Borrower shall promptly notify the Issuing Lender
      and
      the Administrative Agent of its intent to otherwise reimburse the Issuing
      Lender, the Borrower shall be deemed to have requested a Revolving Loan in
      the
      amount of the drawing as provided in subsection (e) hereof, the proceeds of
      which will be used to satisfy the reimbursement obligations. The Borrower’s
      reimbursement obligations hereunder shall be absolute and unconditional under
      all circumstances irrespective of any rights of set-off, counterclaim or defense
      to payment the Borrower may claim or have against the Issuing Lender, the
      Administrative Agent, the Lenders, the beneficiary of the Letter of Credit
      drawn
      upon or any other Person, including without limitation any defense based on
      any
      failure of the Borrower to receive consideration or the legality, validity,
      regularity or unenforceability of the Letter of Credit. The Issuing Lender
      will
      promptly notify the other Revolving Lenders of the amount of any unreimbursed
      drawing and each Revolving Lender shall promptly pay to the Administrative
      Agent
      for the account of the Issuing Lender in Dollars and in immediately available
      funds, the amount of such Revolving Lender’s Revolving Commitment Percentage of
      such unreimbursed drawing. Such payment shall be made on the day such notice
      is
      received by such Revolving Lender from the Issuing Lender if such notice is
      received at or before 2:00 P.M. (Charlotte, North Carolina time), otherwise
      such
      payment shall be made at or before 12:00 Noon (Charlotte, North Carolina time)
      on the next succeeding Business Day. If such Revolving Lender does not pay
      such
      amount to the Issuing Lender in full upon such request, such Revolving Lender
      shall, on demand, pay to the Administrative Agent for the account of the Issuing
      Lender interest on the unpaid amount during the period from the date of such
      drawing until such Revolving Lender pays such amount to the Issuing Lender
      in
      full at a rate per annum equal to, if paid within two (2) Business Days of
      the
      date of drawing, the Federal Funds Effective Rate and thereafter at a rate
      equal
      to the Alternate Base Rate. Each Revolving Lender’s obligation to make such
      payment to the Issuing Lender, and the right of the Issuing Lender to receive
      the same, shall be absolute and unconditional, shall not be affected by any
      circumstance whatsoever and without regard to the termination of this Agreement
      or the Commitments hereunder, the existence of a Default or Event of Default
      or
      the acceleration of the Credit Party Obligations hereunder and shall be made
      without any offset, abatement, withholding or reduction whatsoever.

    

    
      
        
          
          

        

        
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    (e)    Repayment
      with Revolving Loans.
      On any
      day on which the Borrower shall have requested, or been deemed to have
      requested, a Revolving Loan to reimburse a drawing under a Letter of Credit,
      the
      Administrative Agent shall give notice to the Revolving Lenders that a Revolving
      Loan has been requested or deemed requested in connection with a drawing under
      a
      Letter of Credit, in which case a Revolving Loan borrowing comprised entirely
      of
      Alternate Base Rate Loans (each such borrowing, a “Mandatory
      Borrowing”)
      shall
      be immediately made (without giving effect to any termination of the Commitments
      pursuant to Section 7.2) pro rata
      based on
      each Revolving Lender’s respective Revolving Commitment Percentage (determined
      before giving effect to any termination of the Commitments pursuant to Section
      7.2) and the proceeds thereof shall be paid directly to the Issuing Lender
      for
      application to the respective LOC Obligations. Each Revolving Lender hereby
      irrevocably agrees to make such Revolving Loans immediately upon any such
      request or deemed request on account of each Mandatory Borrowing in the amount
      and in the manner specified in the preceding sentence and on the same such
      date
notwithstanding
      (i) the
      amount of Mandatory Borrowing may not comply with the minimum amount for
      borrowings of Revolving Loans otherwise required hereunder, (ii) whether any
      conditions specified in Section 4.2 are then satisfied, (iii) whether a Default
      or an Event of Default then exists, (iv) failure for any such request or deemed
      request for Revolving Loan to be made by the time otherwise required in Section
      2.1(b), (v) the date of such Mandatory Borrowing, or (vi) any reduction in
      the Revolving Committed Amount after any such Letter of Credit may have been
      drawn upon; provided,
      however,
      that in
      the event any such Mandatory Borrowing should be less than the minimum amount
      for borrowings of Revolving Loans otherwise provided in Section 2.1(b)(ii),
      the
      Borrower shall pay to the Administrative Agent for its own account an
      administrative fee of $500. In the event that any Mandatory Borrowing cannot
      for
      any reason be made on the date otherwise required above (including, without
      limitation, as a result of the commencement of a proceeding under the Bankruptcy
      Code), then each such Revolving Lender hereby agrees that it shall forthwith
      fund (as of the date the Mandatory Borrowing would otherwise have occurred,
      but
      adjusted for any payments received from the Borrower on or after such date
      and
      prior to such purchase) its Participation Interests in the LOC Obligations;
      provided,
      further,
      that in
      the event any Revolving Lender shall fail to fund its Participation Interest
      on
      the day the Mandatory Borrowing would otherwise have occurred, then the amount
      of such Revolving Lender’s unfunded Participation Interest therein shall bear
      interest payable by such Revolving Lender to the Issuing Lender upon demand,
      at
      the rate equal to, if paid within two (2) Business Days of such date, the
      Federal Funds Effective Rate, and thereafter at a rate equal to the Alternate
      Base Rate.

    

    (f)
    Modification,
      Extension.
      The
      issuance of any supplement, modification, amendment, renewal, or extension
      to
      any Letter of Credit shall, for purposes hereof, be treated in all respects
      the
      same as the issuance of a new Letter of Credit hereunder.

    

    (g)    ISP98
      and UCP.
      Unless
      otherwise expressly agreed by the Issuing Lender and the Borrower, when a Letter
      of Credit is issued, (i) the rules of the “International Standby Practices
      1998,” published by the Institute of International Banking Law & Practice
      (or such later version thereof as may be in effect at the time of issuance)
      shall apply to each standby Letter of Credit, and (ii) the rules of The Uniform
      Customs and Practice for Documentary Credits, as most recently published by
      the
      International Chamber of Commerce (the “UCP”)
      at the
      time of issuance, shall apply to each commercial Letter of Credit.

    

    (h)    Conflict
      with LOC Documents.
      In the
      event of any conflict between this Agreement and any LOC Document (including
      any
      letter of credit application), this Agreement shall control.

    

    (i)    
Designation
      of Subsidiaries as Account Parties.
      Notwithstanding anything to the contrary set forth in this Agreement, including
      without limitation Section 2.3(a), a Letter of Credit issued hereunder may
      contain a statement to the effect that such Letter of Credit is issued for
      the
      account of a Subsidiary of the Borrower; provided
      that,
      notwithstanding such statement, the Borrower shall be the actual account party
      for all purposes of this Agreement for such Letter of Credit and such statement
      shall not affect the Borrower’s reimbursement obligations hereunder with respect
      to such Letter of Credit.

    

    
      
        
          
          

        

        
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              Section
                2.4

            	
              Swingline
                Loan Subfacility.

            

    

    

    (a)    Swingline
      Commitment.
      During
      the Commitment Period, subject to the terms and conditions hereof, the Swingline
      Lender, in its individual capacity, agrees to make certain revolving credit
      loans to the Borrower (each a “Swingline
      Loan”
and,
      collectively, the “Swingline
      Loans”)
      for
      the purposes hereinafter set forth; provided,
      however,
      (i) the
      aggregate amount of Swingline Loans outstanding at any time shall not exceed
      SEVEN
      MILLION FIVE HUNDRED THOUSAND DOLLARS ($7,500,000)
      (the
“Swingline
      Committed Amount”),
      and
      (ii) the sum of the outstanding Revolving Loans plus
      outstanding Swingline Loans plus
      outstanding LOC Obligations shall not exceed the Revolving Committed Amount.
      Swingline Loans hereunder may be repaid and reborrowed in accordance with the
      provisions hereof.

    

    (b)    Swingline
      Loan Borrowings.

    

    (i)    
Notice
      of Borrowing and Disbursement.
      The
      Swingline Lender will make Swingline Loans available to the Borrower by
      crediting the account of the Borrower designated in the Account Designation
      Letter (or as otherwise agreed between the Borrower and the Administrative
      Agent) on any Business Day upon request made by the Borrower through the
      delivery of a Notice of Borrowing (with appropriate modifications) (or telephone
      notice promptly confirmed by delivery to the Administrative Agent and the
      Swingline Lender of a Notice of Borrowing by fax or other electronic notice
      with
      confirmed receipt from the recipient) to the Administrative Agent and the
      Swingline Lender not later than 2:00 P.M. (Charlotte, North Carolina time)
      on
      such Business Day. Swingline Loan borrowings hereunder shall be made in minimum
      amounts of $100,000 and in integral amounts of $100,000 in excess
      thereof.

    

    
      
        
          
          

        

        
          45

          
            

          

        

        
          
          

        

      

    

    

    (ii)    Repayment
      of Swingline Loans.
      Each
      Swingline Loan borrowing shall be due and payable on the Revolver Maturity
      Date.
      The Swingline Lender may, at any time, in its sole discretion, by written notice
      to the Borrower and the Administrative Agent, demand repayment of its Swingline
      Loans by way of a Revolving Loan borrowing, in which case the Borrower shall
      be
      deemed to have requested a Revolving Loan borrowing comprised entirely of
      Alternate Base Rate Loans in the amount of such Swingline Loans; provided,
      however,
      that,
      in the following circumstances, any such demand shall also be deemed to have
      been given one Business Day prior to each of (A)
      the
      Revolver Maturity Date, (B)
      the
      occurrence of any Event of Default described in Section 7.1(e), (C)
      upon
      acceleration of the Credit Party Obligations hereunder, whether on account
      of an
      Event of Default described in Section 7.1(e) or any other Event of Default,
      and
      (D)
      the
      exercise of remedies in accordance with the provisions of Section 7.2 hereof
      (each such Revolving Loan borrowing made on account of any such deemed request
      therefore as provided herein being hereinafter referred to as “Mandatory
      Borrowing”).
      Each
      Revolving Lender hereby irrevocably agrees to make such Revolving Loans promptly
      upon any such request or deemed request on account of each Mandatory Borrowing
      in the amount and in the manner specified in the preceding sentence and on
      the
      same such date notwithstanding
      (I) the amount of Mandatory Borrowing may not comply with the minimum
      amount for borrowings of Revolving Loans otherwise required hereunder,
      (II) whether any conditions specified in Section 4.2 are then satisfied,
      (III) whether a Default or an Event of Default then exists, (IV) failure of
      any
      such request or deemed request for Revolving Loans to be made by the time
      otherwise required in Section 2.1(b)(i), (V) the date of such Mandatory
      Borrowing, or (VI) any reduction in the Revolving Committed Amount or
      termination of the Revolving Commitments immediately prior to such Mandatory
      Borrowing or contemporaneously therewith. In the event that any Mandatory
      Borrowing cannot for any reason be made on the date otherwise required above
      (including, without limitation, as a result of the commencement of a proceeding
      under the Bankruptcy Code), then each Revolving Lender hereby agrees that it
      shall forthwith purchase (as of the date the Mandatory Borrowing would otherwise
      have occurred, but adjusted for any payments received from the Borrower on
      or
      after such date and prior to such purchase) from the Swingline Lender such
      participations in the outstanding Swingline Loans as shall be necessary to
      cause
      each such Revolving Lender to share in such Swingline Loans ratably based upon
      its respective Revolving Commitment Percentage (determined before giving effect
      to any termination of the Commitments pursuant to Section 7.2); provided
      that (x)
      all interest payable on the Swingline Loans shall be for the account of the
      Swingline Lender until the date as of which the respective participation is
      purchased, and (y) at the time any purchase of participations pursuant to
      this sentence is actually made, the purchasing Revolving Lender shall be
      required to pay to the Swingline Lender interest on the principal amount of
      such
      participation purchased for each day from and including the day upon which
      the
      Mandatory Borrowing would otherwise have occurred to but excluding the date
      of
      payment for such participation, at the rate equal to, if paid within two (2)
      Business Days of the date of the Mandatory Borrowing, the Federal Funds
      Effective Rate, and thereafter at a rate equal to the Alternate Base
      Rate.

    

    (c)    Interest
      on Swingline Loans.
      Subject
      to the provisions of Section 2.9, Swingline Loans shall bear interest at a
      per
      annum rate equal to the Alternate Base Rate plus
      the
      Applicable Percentage for Revolving Loans that are Alternate Base Rate Loans.
      Interest on Swingline Loans shall be payable in arrears on each Interest Payment
      Date.

    

    (d)    Swingline
      Note; Covenant to Pay.
      The
      Swingline Loans may be evidenced, upon such Lender’s request, by a duly executed
      promissory note of the Borrower to the Swingline Lender in the original amount
      of the Swingline Committed Amount and substantially in the form of Schedule
      2.4(d).
      The
      Borrower covenants and agrees to pay the Swingline Loans in accordance with
      the
      terms of this Agreement.

    

    
      
        
          
          

        

        
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              Section
                2.5

            	
              Fees.

            

    

    

    (a)    Commitment
      Fee.
      In
      consideration of the Revolving Commitments, the Borrower agrees to pay to the
      Administrative Agent for the ratable benefit of the Revolving Lenders a
      commitment fee (the “Commitment
      Fee”)
      in an
      amount equal to the Applicable Percentage per annum on the average daily unused
      amount of the Revolving Committed Amount. For purposes of computation of the
      Commitment Fee, LOC Obligations shall be considered usage of the Revolving
      Committed Amount but Swingline Loans shall not be considered usage of the
      Revolving Committed Amount. The Commitment Fee shall be payable quarterly in
      arrears on the last Business Day of each calendar quarter for the prior calendar
      quarter then ending.

    

    (b)    Letter
      of Credit Fees.
      In
      consideration of the LOC Commitments, the Borrower agrees to pay to the Issuing
      Lender a fee (the “Letter
      of Credit Fee”)
      equal
      to the Applicable Percentage per annum on the average daily maximum amount
      available to be drawn under each Letter of Credit from the date of issuance
      to
      the date of expiration. In addition to such Letter of Credit Fee, the Issuing
      Lender may charge, and retain for its own account without sharing by the other
      Lenders, an additional facing fee of one-eighth of one percent (0.125%) per
      annum on the average daily maximum amount available to be drawn under each
      such
      Letter of Credit issued by it. The Issuing Lender shall promptly pay over to
      the
      Administrative Agent for the ratable benefit of the Revolving Lenders (including
      the Issuing Lender) the Letter of Credit Fee. The Letter of Credit Fee shall
      be
      payable quarterly in arrears on the last Business Day of each calendar quarter
      for the prior calendar quarter then ending.

    

    (c)    Issuing
      Lender Fees.
      In
      addition to the Letter of Credit Fees payable pursuant to subsection (b) hereof,
      the Borrower shall pay to the Issuing Lender for its own account without sharing
      by the other Lenders the reasonable and customary charges from time to time
      of
      the Issuing Lender with respect to the amendment, transfer, administration,
      cancellation and conversion of, and drawings under, such Letters of Credit
      (collectively, the “Issuing
      Lender Fees”);
      provided
      such
      fees shall not be duplicative of any fees charged under any LOC
      Document.

    

    (d)    Administrative
      Fee.
      The
      Borrower agrees to pay to the Administrative Agent the annual administrative
      fee
      as described in the Agent’s Fee Letter.

    

    
      	 	
              Section
                2.6

            	
              Commitment
                Reductions.

            

    

    

    (a)    Voluntary
      Reductions.
      The
      Borrower shall have the right to terminate or permanently reduce the unused
      portion of the Revolving Committed Amount at any time or from time to time
      upon
      not less than five (5) Business Days’ prior notice to the Administrative
      Agent (which shall notify the Revolving Lenders thereof as soon as practicable)
      of each such termination or reduction, which notice shall specify the effective
      date thereof and the amount of any such reduction which shall be in a minimum
      amount of $1,000,000 or a whole multiple of $500,000 in excess thereof, or,
      if
      less, the remaining Revolving Committed Amount, and shall be irrevocable and
      effective upon receipt by the Administrative Agent; provided
      that no
      such reduction or termination shall be permitted if after giving effect thereto,
      and to any prepayments of the Loans made on the effective date thereof, the
      sum
      of the outstanding Revolving Loans plus
      outstanding Swingline Loans plus
      outstanding LOC Obligations would exceed the Revolving Committed
      Amount.

    

    
      
        
          
          

        

        
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    (b)    Swingline
      Committed Amount.
      If the
      Revolving Committed Amount is reduced, pursuant to Section 2.6(a) above, below
      the then current Swingline Committed Amount, the Swingline Committed Amount
      shall automatically be reduced by an amount such that the Swingline Committed
      Amount equals the Revolving Committed Amount.

    

    (c)    Revolver
      Maturity Date.
      The
      Revolving Commitment, the Swingline Commitment and the LOC Commitment shall
      automatically terminate on the Maturity Date.

    

    
      	 	
              Section
                2.7

            	
              Prepayments.

            

    

    

    (a)    Optional
      Prepayments.
      The
      Borrower shall have the right to prepay Loans in whole or in part from time
      to
      time; provided,
      however,
      that
      each partial prepayment of a Revolving Loan and the Term Loan shall be in a
      minimum principal amount of $1,000,000 and integral multiples of $500,000 in
      excess thereof, and each partial prepayment of a Swingline Loan shall be in
      a
      minimum principal amount of $100,000 and integral multiples of $100,000 in
      excess thereof. The Borrower shall give three (3) Business Days’
irrevocable notice in the case of LIBOR Rate Loans and one Business Day’s
      irrevocable notice in the case of Alternate Base Rate Loans, to the
      Administrative Agent (which shall notify the Lenders thereof as soon as
      practicable). To the extent the Borrower elects to prepay the Term Loan
      (including, if applicable, any Additional Term Loan), amounts prepaid under
      this
      Section shall be applied to the next four (4) scheduled amortization payments
      and then pro rata to the Term Loan and any Additional Term Loan, if applicable
      (ratably to the remaining principal installments thereof), and then (after
      the
      Term Loan and any Additional Term Loan, if applicable, has been paid in full)
      to
      the Revolving Loans as the Borrower may elect. All prepayments under this
      Section 2.7(a) shall be subject to Section 2.17, but otherwise without premium
      or penalty. Interest on the principal amount prepaid shall be payable on the
      next occurring Interest Payment Date that would have occurred had such loan
      not
      been prepaid or, at the request of the Administrative Agent, interest on the
      principal amount prepaid shall be payable on any date that a prepayment is
      made
      hereunder through the date of prepayment.

    

    (b)    Mandatory
      Prepayments.

    

    (i)    
Revolving
      Committed Amount.
      If at
      any time after the Closing Date, the sum of the outstanding Revolving Loans
      plus
      outstanding Swingline Loans plus
      outstanding LOC Obligations shall exceed the Revolving Committed Amount, the
      Borrower immediately shall prepay the Loans and cash collateralize the
      outstanding LOC Obligations in an amount sufficient to eliminate such excess
      (such prepayment to be applied as set forth in clause (vi) below).

    

    
      
        
          
          

        

        
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    (ii)    Asset
      Dispositions.
      The
      Borrower shall prepay the Loans and cash collateralize the outstanding LOC
      Obligations in an aggregate amount equal to 100% of the Net Cash Proceeds
      derived from Asset Dispositions during any fiscal year in excess of $500,000
      (such prepayment to be applied as set forth in clause (vi) below); provided,
      however,
      that,
      so long as no Default or Event of Default has occurred and is continuing, such
      Net Cash Proceeds shall not be required to be so applied to the extent the
      Borrower delivers to the Administrative Agent promptly following such Asset
      Disposition a certificate stating that it or the Company or any Subsidiary
      intends to use such Net Cash Proceeds to acquire like assets used in the
      business of the Borrower and its Subsidiaries within 180 days of the receipt
      of
      such Net Cash Proceeds, it being expressly agreed that any Net Cash Proceeds
      not
      so reinvested shall be applied to prepay the Loans and cash collateralize the
      outstanding LOC Obligations immediately thereafter (such prepayment to be
      applied as set forth in clause (vi) below).

    

    (iii)   Issuances.
      Immediately upon receipt by the Company or any of its Subsidiaries of proceeds
      from (A) any Debt Issuance, the Borrower shall prepay the Loans and cash
      collateralize the outstanding LOC Obligations in an aggregate amount equal
      to
      100% of the Net Cash Proceeds of such Debt Issuance to the Lenders (such
      prepayment to be applied as set forth in clause (vi) below) or (B) any Equity
      Issuance, the Borrower shall prepay the Loans and cash collateralize the
      outstanding LOC Obligations in an aggregate amount equal to 50% of the Net
      Cash
      Proceeds of such Equity Issuance (such prepayment to be applied as set forth
      in
      clause (vi) below);
      provided,
      however,
      if the
      Leverage Ratio is less than or equal to 1.75 to 1.00 as of the end of the
      preceding fiscal year of the Company, then the Borrower shall not be required
      to
      prepay the Loans or cash collateralize the outstanding LOC Obligations with
      the
      proceeds of any Debt Issuance or any Equity Issuance.

    

    (iv)   Recovery
      Event.
      To the
      extent of Net Cash Proceeds received in connection with a Recovery Event that
      are not applied in accordance with Section 6.4(a)(iii), immediately following
      the expiration of the period allowed for reinvesting of such Net Cash Proceeds
      pursuant to Section 6.4(a)(iii), the Borrower shall prepay the Loans and cash
      collateralize the outstanding LOC Obligations in an aggregate amount equal
      to
      100% of such Net Cash Proceeds (such prepayment to be applied as set forth
      in
      clause (vi) below).

    

    (v)    Excess
      Cash Flow.
      Within
      ninety (90) days after the end of each fiscal year of the Company
      (commencing with the fiscal year ending December 31, 2007), the Borrower shall
      prepay the Loans and
      cash
      collateralize the outstanding LOC Obligations
      in an
      amount equal to 50% of the Excess Cash Flow earned during such prior fiscal
      year
      (such prepayments to be applied as set forth in clause (vi) below); provided,
      however,
      if the
      Leverage Ratio is less than or equal to 1.75 to 1.00 as of the end of the
      preceding fiscal year of the Company, then the Borrower shall not be required
      to
      prepay the Loans or cash collateralize the outstanding LOC Obligations with
      Excess Cash Flow.

    

    
      
        
          
          

        

        
          49

          
            

          

        

        
          
          

        

      

    

    

    (vi)   Application
      of Mandatory Prepayments.
      All
      amounts required to be paid pursuant to this Section 2.7(b) shall be applied
      as
      follows: (A) with respect to all amounts prepaid pursuant to Section 2.7(b)(i),
      (1) first,
      to the
      outstanding Swingline Loans, (2) second,
      to the
      outstanding Revolving Loans and (3) third
      (after
      all Revolving Loans have been repaid), to a cash collateral account in respect
      of outstanding LOC Obligations, and (B) with respect to all amounts prepaid
      pursuant to Sections 2.7(b)(ii) through (v), (1) first,
      to the
      next four (4) scheduled amortization payments of the Term Loan (including,
      if applicable, any Additional Term Loan) and then pro rata to the Term Loan
      and
      any Additional Term Loan, if applicable (ratably to the remaining principal
      installments thereof), (2) second
      to the
      Swingline Loans (without a corresponding reduction in the Revolving Committed
      Amount), (3) third,
      to the
      Revolving Loans (without a corresponding reduction in the Revolving Committed
      Amount) and (4) fourth
      (after
      all Revolving Loans have been repaid), to a cash collateral account in respect
      of outstanding LOC Obligations. Within the parameters of the applications set
      forth above, prepayments shall be applied first to Alternate Base Rate Loans
      and
      then to LIBOR Rate Loans in direct order of Interest Period maturities. Each
      Lender shall receive its pro rata share (except with respect to prepayments
      of
      Swingline Loans) of any such prepayment based on its Revolving Commitment
      Percentage or Term Loan Commitment Percentage, as applicable. All prepayments
      under this Section 2.7(b) shall be subject to Section 2.17 and be
      accompanied by interest on the principal amount prepaid through the date of
      prepayment. 

    

    (c)    Hedging
      Obligations Unaffected.
      Any
      repayment or prepayment made pursuant to this Section 2.7 shall not affect
      the
      Borrower’s obligation to continue to make payments under any Secured Hedging
      Agreement, which shall remain in full force and effect notwithstanding such
      repayment or prepayment, subject to the terms of such Secured Hedging
      Agreement.

    

    
      	 	
              Section
                2.8

            	
              Lending
                Offices.

            

    

    

    LIBOR
      Rate Loans shall be made by each Lender at its LIBOR Lending Office and
      Alternate Base Rate Loans at its Domestic Lending Office.

    

    
      	 	
              Section
                2.9

            	
              Default
                Rate and Payment Dates.

            

    

    

    Upon
      the
      occurrence, and during the continuance, of an Event of Default, the principal
      of
      and, to the extent permitted by law, interest on the Loans and any other amounts
      owing hereunder or under the other Credit Documents shall, at the discretion
      of
      the Required Lenders, bear interest, payable on demand, at a per annum rate
      2%
      greater than the rate which would otherwise be applicable (or if no rate is
      applicable, whether in respect of interest, fees or other amounts, then the
      Alternate Base Rate plus
      the
      Applicable Percentage with respect to Alternate Base Rate Loans plus
      2%).

    

    
      
        
          
          

        

        
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              Section
                2.10

            	
              Conversion
                Options.

            

    

    

    (a)    The
      Borrower may, in the case of Revolving Loans and Term Loans, elect from time
      to
      time to convert Alternate Base Rate Loans to LIBOR Rate Loans, by giving the
      Administrative Agent at least three (3) Business Days’ prior irrevocable
      written notice of such election substantially in the form of the notice attached
      as Schedule
      2.10
      (the
“Notice
      of Conversion/Extension”).
      If
      the date upon which an Alternate Base Rate Loan is to be converted to a LIBOR
      Rate Loan is not a Business Day, then such conversion shall be made on the
      next
      succeeding Business Day and during the period from such last day of an Interest
      Period to such succeeding Business Day such Loan shall bear interest as if
      it
      were an Alternate Base Rate Loan. All or any part of outstanding Alternate
      Base
      Rate Loans may be converted as provided herein; provided
      that (i)
      no Loan may be converted into a LIBOR Rate Loan when any Default or Event of
      Default has occurred and is continuing and (ii) partial conversions shall be
      in
      an aggregate principal amount of (A)
      in the
      case of Revolving Loans, $1,000,000 or a whole multiple of $500,000 in excess
      thereof and (B)
      in the
      case of the Term Loan, $2,000,000 or a whole multiple of $1,000,000 in excess
      thereof.

    

    (b)    Any
      LIBOR
      Rate Loans may be continued as such upon the expiration of an Interest Period
      with respect thereto by compliance by the Borrower with the notice provisions
      contained in Section 2.10(a); provided,
      that no
      LIBOR Rate Loan may be continued as such when any Default or Event of Default
      has occurred and is continuing, in which case such Loan shall be automatically
      converted to an Alternate Base Rate Loan at the end of the applicable Interest
      Period with respect thereto. If the Borrower shall fail to give timely notice
      of
      an election to continue a LIBOR Rate Loan, or the continuation of LIBOR Rate
      Loans is not permitted hereunder, such LIBOR Rate Loans shall be automatically
      converted to Alternate Base Rate Loans at the end of the applicable Interest
      Period with respect thereto.

    

    
      	 	
              Section
                2.11

            	
              Computation
                of Interest and Fees.

            

    

    

    (a)    Interest
      payable hereunder with respect to Alternate Base Rate Loans based on the Prime
      Rate shall be calculated on the basis of a year of 365 days (or 366 days, as
      applicable) for the actual days elapsed. All other fees, interest and all other
      amounts payable hereunder shall be calculated on the basis of a 360-day year
      for
      the actual days elapsed. The Administrative Agent shall as soon as practicable
      notify the Borrower and the Lenders of each determination of a LIBOR Rate on
      the
      Business Day of the determination thereof. Any change in the interest rate
      on a
      Loan resulting from a change in the Alternate Base Rate shall become effective
      as of the opening of business on the day on which such change in the Alternate
      Base Rate shall become effective. The Administrative Agent shall as soon as
      practicable notify the Borrower and the Lenders of the effective date and the
      amount of each such change.

    

    (b)    Each
      determination of an interest rate by the Administrative Agent pursuant to any
      provision of this Agreement shall be conclusive and binding on the Borrower
      and
      the Lenders in the absence of manifest error. The Administrative Agent shall,
      at
      the request of the Borrower, deliver to the Borrower a statement showing the
      computations used by the Administrative Agent in determining any interest
      rate.

    

    
      
        
          
          

        

        
          51

          
            

          

        

        
          
          

        

      

    

    

    (c)    It
      is the
      intent of the Lenders and the Credit Parties to conform to and contract in
      strict compliance with applicable usury law from time to time in effect. All
      agreements between the Lenders and the Credit Parties are hereby limited by
      the
      provisions of this subsection which shall override and control all such
      agreements, whether now existing or hereafter arising and whether written or
      oral. In no way, nor in any event or contingency (including but not limited
      to
      prepayment or acceleration of the maturity of any Credit Party Obligation),
      shall the interest taken, reserved, contracted for, charged, or received under
      this Agreement, under the Notes or otherwise, exceed the maximum nonusurious
      amount permissible under applicable law. If, from any possible construction
      of
      any of the Credit Documents or any other document, interest would otherwise
      be
      payable in excess of the maximum nonusurious amount, any such construction
      shall
      be subject to the provisions of this paragraph and such interest shall be
      automatically reduced to the maximum nonusurious amount permitted under
      applicable law, without the necessity of execution of any amendment or new
      document. If any Lender shall ever receive anything of value which is
      characterized as interest on the Loans under applicable law and which would,
      apart from this provision, be in excess of the maximum nonusurious amount,
      an
      amount equal to the amount which would have been excessive interest shall,
      without penalty, be applied to the reduction of the principal amount owing
      on
      the Loans and not to the payment of interest, or refunded to the Borrower or
      the
      other payor thereof if and to the extent such amount which would have been
      excessive exceeds such unpaid principal amount of the Loans. The right to demand
      payment of the Loans or any other Indebtedness evidenced by any of the Credit
      Documents does not include the right to receive any interest which has not
      otherwise accrued on the date of such demand, and the Lenders do not intend
      to
      charge or receive any unearned interest in the event of such demand. All
      interest paid or agreed to be paid to the Lenders with respect to the Loans
      shall, to the extent permitted by applicable law, be amortized, prorated,
      allocated, and spread throughout the full stated term (including any renewal
      or
      extension) of the Loans so that the amount of interest on account of such
      Indebtedness does not exceed the maximum nonusurious amount permitted by
      applicable law.

    

    
      	 	
              Section
                2.12

            	
              Pro
                Rata Treatment and Payments.

            

    

    

    (a)    Each
      borrowing of Revolving Loans and any reduction of the Revolving Commitments
      shall be made pro rata
      according to the respective Revolving Commitment Percentages of the Revolving
      Lenders. Each payment under this Agreement or any Note shall be applied, first,
      to any fees then due and owing by the Borrower pursuant to Section 2.5, second,
      to interest then due and owing in respect of the Notes of the Borrower and,
      third, to principal then due and owing hereunder and under the Notes of the
      Borrower. Each payment on account of any fees pursuant to Section 2.5 shall
      be
      made pro rata
      in
      accordance with the respective amounts due and owing (except as to the portion
      of the Letter of Credit retained by the Issuing Lender and the Issuing Lender
      Fees). Each payment (other than prepayments) by the Borrower on account of
      principal of and interest on the Revolving Loans and the Term Loan shall be
      made
pro rata
      according to the respective amounts due and owing in accordance with Section
      2.7
      hereof. Each optional prepayment on account of principal of the Loans shall
      be
      applied in accordance with Section 2.7(a) and each mandatory prepayment on
      account of principal of the Loans shall be applied in accordance with Section
      2.7(b). All payments (including prepayments) to be made by the Borrower on
      account of principal, interest and fees shall be made without defense, set-off
      or counterclaim (except as provided in Section 2.18(b)) and shall be made
      to the Administrative Agent for the account of the Lenders at the Administrative
      Agent’s office specified in Section 9.2 in Dollars and in immediately available
      funds not later than 1:00 P.M. (Charlotte, North Carolina time) on the date
      when
      due. The Administrative Agent shall distribute such payments to the Lenders
      entitled thereto promptly upon receipt in like funds as received. If any payment
      hereunder (other than payments on the LIBOR Rate Loans) becomes due and payable
      on a day other than a Business Day, such payment shall be extended to the next
      succeeding Business Day, and, with respect to payments of principal, interest
      thereon shall be payable at the then applicable rate during such extension.
      If
      any payment on a LIBOR Rate Loan becomes due and payable on a day other than
      a
      Business Day, the maturity thereof shall be extended to the next succeeding
      Business Day unless the result of such extension would be to extend such payment
      into another calendar month, in which event such payment shall be made on the
      immediately preceding Business Day.

    

    
      
        
          
          

        

        
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    (b)    Allocation
      of Payments After Exercise of Remedies.
      Notwithstanding any other provision of this Credit Agreement to the contrary,
      upon the exercise of remedies by the Administrative Agent or the Lenders
      pursuant to Section 7.2 (or after the Commitments shall automatically terminate
      and the Loans and all other amounts under the Credit Documents shall
      automatically become due and payable in accordance with the terms of such
      Section), all amounts collected or received by the Administrative Agent or
      any
      Lender on account of the Credit Party Obligations or any other amounts
      outstanding under any of the Credit Documents or in respect of the Collateral
      shall be paid over or delivered as follows:

    

    FIRST,
      to
      the payment of all reasonable out-of-pocket costs and expenses (including
      without limitation reasonable attorneys’ fees) of the Administrative Agent in
      connection with enforcing the rights of the Lenders under the Credit Documents
      and any protective advances made by the Administrative Agent with respect to
      the
      Collateral under or pursuant to the terms of the Collateral
      Documents;

    

    SECOND,
      to payment of any fees owed to the Administrative Agent;

    

    THIRD,
      to
      the payment of all reasonable out-of-pocket costs and expenses (including
      without limitation, reasonable attorneys’ fees) of each of the Lenders in
      connection with enforcing its rights under the Credit Documents or otherwise
      with respect to the Credit Party Obligations owing to such Lender;

    

    
      
        
          
          

        

        
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    FOURTH,
      to the payment of all of the Credit Party Obligations consisting of accrued
      fees
      and interest, including with respect to any Secured Hedging Agreement, any
      fees,
      premiums and scheduled periodic payments due under such Secured Hedging
      Agreement and any interest accrued thereon;

    

    FIFTH,
      to
      the payment of the outstanding principal amount of the Credit Party Obligations
      and the payment or cash collateralization of the outstanding LOC Obligations,
      and including with respect to any Secured Hedging Agreement, any breakage,
      termination or other payments due under such Secured Hedging Agreement and
      any
      interest accrued thereon;

    

    SIXTH,
      to
      all other Credit Party Obligations and other obligations which shall have become
      due and payable under the Credit Documents or otherwise and not repaid pursuant
      to clauses “FIRST” through “FIFTH” above; and

    

    SEVENTH,
      to the payment of the surplus, if any, to whoever may be lawfully entitled
      to
      receive such surplus.

    

    In
      carrying out the foregoing, (i) amounts received shall be applied in the
      numerical order provided until exhausted prior to application to the next
      succeeding category; (ii) each of the Lenders and Hedging Agreement Providers
      shall receive an amount equal to its pro rata share (based on the proportion
      that the then outstanding Loans and outstanding LOC Obligations held by such
      Lender or the outstanding obligations payable to such Hedging Agreement Provider
      bears to the aggregate then outstanding Loans, outstanding LOC Obligations
      and
      obligations payable under all Secured Hedging Agreements) of amounts available
      to be applied pursuant to clauses ”THIRD”, “FOURTH”, “FIFTH” and “SIXTH”
above; and (iii) to the extent that any amounts available for distribution
      pursuant to clause “FIFTH” above are attributable to the issued but undrawn
      amount of outstanding Letters of Credit, such amounts shall be held by the
      Administrative Agent in a cash collateral account and applied (A) first, to
      reimburse the Issuing Lender from time to time for any drawings under such
      Letters of Credit and (B) then, following the expiration of all Letters of
      Credit, to all other obligations of the types described in clauses “FIFTH” and
“SIXTH” above in the manner provided in this Section 2.12(b). Notwithstanding
      the foregoing terms of this Section 2.12(b), only Collateral proceeds and
      payments under the Guaranty with respect to Secured Hedging Agreements shall
      be
      applied to obligations under any Secured Hedging Agreement.

    

    
      	 	
              Section
                2.13

            	
              Non-Receipt
                of Funds by the Administrative Agent.

            

    

    

    (a)    Unless
      the Administrative Agent shall have been notified in writing by a Lender prior
      to the date a Loan is to be made by such Lender (which notice shall be effective
      upon receipt), that such Lender does not intend to make the proceeds of such
      Loan available to the Administrative Agent, the Administrative Agent may assume
      that such Lender has made such proceeds available to the Administrative Agent
      on
      such date, and the Administrative Agent may in reliance upon such assumption
      (but shall not be required to) make available to the Borrower a corresponding
      amount. If such corresponding amount is not in fact made available to the
      Administrative Agent, the Administrative Agent shall be able to recover such
      corresponding amount from such Lender. If such Lender does not pay such
      corresponding amount forthwith upon the Administrative Agent’s demand therefor,
      the Administrative Agent will promptly notify the Borrower, and the Borrower
      shall immediately pay such corresponding amount to the Administrative Agent.
      The
      Administrative Agent shall also be entitled to recover from the Lender or the
      Borrower, as the case may be, interest on such corresponding amount in respect
      of each day from the date such corresponding amount was made available by the
      Administrative Agent to the Borrower to the date such corresponding amount
      is
      recovered by the Administrative Agent at a per annum rate equal to (i) from
      the
      Borrower at the applicable rate for the applicable borrowing pursuant to the
      Notice of Borrowing and (ii) from a Lender at the Federal Funds Effective
      Rate.

    

    
      
        
          
          

        

        
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    (b)    Unless
      the Administrative Agent shall have been notified in writing by the Borrower,
      prior to the date on which any payment is due from it hereunder (which notice
      shall be effective upon receipt) that the Borrower does not intend to make
      such
      payment, the Administrative Agent may assume that such Borrower has made such
      payment when due, and the Administrative Agent may in reliance upon such
      assumption (but shall not be required to) make available to each Lender on
      such
      payment date an amount equal to the portion of such assumed payment to which
      such Lender is entitled hereunder, and if the Borrower has not in fact made
      such
      payment to the Administrative Agent, such Lender shall, on demand, repay to
      the
      Administrative Agent the amount made available to such Lender. If such amount
      is
      repaid to the Administrative Agent on a date after the date such amount was
      made
      available to such Lender, such Lender shall pay to the Administrative Agent
      on
      demand interest on such amount in respect of each day from the date such amount
      was made available by the Administrative Agent to such Lender to the date such
      amount is recovered by the Administrative Agent at a per annum rate equal to
      the
      Federal Funds Effective Rate.

    

    (c)    A
      certificate of the Administrative Agent submitted to the Borrower or any Lender
      with respect to any amount owing under this Section 2.13 shall be conclusive
      in
      the absence of manifest error.

    

    
      	 	
              Section
                2.14

            	
              Inability
                to Determine Interest Rate.

            

    

    

    Notwithstanding
      any other provision of this Agreement, if (i) the Administrative Agent shall
      reasonably determine (which determination shall be conclusive and binding absent
      manifest error) that, by reason of circumstances affecting the relevant market,
      reasonable and adequate means do not exist for ascertaining LIBOR Rate for
      any
      Interest Period, or (ii) the Administrative Agent or the Required Lenders shall
      reasonably determine (which determination shall be conclusive and binding absent
      manifest error) that LIBOR Rate does not adequately and fairly reflect the
      cost
      to such Lenders of funding LIBOR Rate Loans that the Borrower has requested
      be
      outstanding as a LIBOR Tranche during such Interest Period, the Administrative
      Agent shall forthwith give telephone notice of such determination, confirmed
      in
      writing, to the Borrower, and the Lenders at least two (2) Business Days
      prior to the first day of such Interest Period. Unless the Borrower shall have
      notified the Administrative Agent upon receipt of such telephone notice that
      it
      wishes to rescind or modify its request regarding such LIBOR Rate Loans, any
      Loans that were requested to be made as LIBOR Rate Loans shall be made as
      Alternate Base Rate Loans and any Loans that were requested to be converted
      into
      or continued as LIBOR Rate Loans shall remain as or be converted into Alternate
      Base Rate Loans. Until any such notice has been withdrawn by the Administrative
      Agent, no further Loans shall be made as, continued as, or converted into,
      LIBOR
      Rate Loans for the Interest Periods so affected.

    

    
      
        
          
          

        

        
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              Section
                2.15

            	
              Illegality.

            

    

    

    Notwithstanding
      any other provision of this Agreement, if the adoption of or any change in
      any
      Requirement of Law or in the interpretation, administration or application
      thereof by the relevant Governmental Authority to any Lender shall make it
      unlawful for such Lender or its LIBOR Lending Office to make or maintain LIBOR
      Rate Loans as contemplated by this Agreement or to obtain in the interbank
      eurodollar market through its LIBOR Lending Office the funds with which to
      make
      such Loans, (a) such Lender shall promptly notify the Administrative Agent
      and
      the Borrower thereof, (b) the commitment of such Lender hereunder to make LIBOR
      Rate Loans or continue LIBOR Rate Loans as such shall forthwith be suspended
      until the Administrative Agent shall give notice that the condition or situation
      which gave rise to the suspension shall no longer exist, and (c) such Lender’s
      Loans then outstanding as LIBOR Rate Loans, if any, shall be converted on the
      last day of the Interest Period for such Loans or within such earlier period
      as
      required by law to Alternate Base Rate Loans. The Borrower hereby agrees
      promptly to pay any Lender, upon its demand, any additional amounts necessary
      to
      compensate such Lender for actual and direct costs (but not including
      anticipated profits) reasonably incurred by such Lender including, but not
      limited to, any interest or fees payable by such Lender to lenders of funds
      obtained by it in order to make or maintain its LIBOR Rate Loans hereunder.
      A
      certificate as to any additional amounts payable pursuant to this Section
      submitted by such Lender (which certificate shall include a description of
      the
      basis for the computation), through the Administrative Agent, to the Borrower
      shall be conclusive in the absence of manifest error. Each Lender agrees to
      use
      reasonable efforts (including reasonable efforts to change its LIBOR Lending
      Office) to avoid or to minimize any amounts which may otherwise be payable
      pursuant to this Section; provided,
      however,
      that
      such efforts shall not cause the imposition on such Lender of any additional
      costs or legal or regulatory burdens deemed by such Lender in its reasonable
      discretion to be material.

    

    
      	 	
              Section
                2.16

            	
              Requirements
                of Law.

            

    

    

    (a)    If
      the
      adoption of or any change in any Requirement of Law (other than any change
      by
      way of imposition or increase of reserve requirements included in the Eurodollar
      Reserve Percentage) or in the interpretation, administration or application
      thereof or compliance by any Lender with any request or directive (whether
      or
      not having the force of law) from any central bank or other Governmental
      Authority made subsequent to the date hereof:

    

    
      
        
          
          

        

        
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    (i)    
shall
      subject such Lender to any tax of any kind whatsoever with respect to any Letter
      of Credit or any application relating thereto, any LIBOR Rate Loan made by
      it,
      or change the basis of taxation of payments to such Lender in respect thereof
      (except for changes in the rate of tax on the overall net income of such
      Lender);

    

    (ii)    shall
      impose, modify or hold applicable any reserve, special deposit, compulsory
      loan
      or similar requirement against assets held by, deposits or other liabilities
      in
      or for the account of, advances, loans or other extensions of credit by, or
      any
      other acquisition of funds by, any office of such Lender which is not otherwise
      included in the determination of the LIBOR Rate hereunder; or

    

    (iii)   shall
      impose on such Lender any other condition;

    

    and
      the
      result of any of the foregoing is to increase the cost to such Lender of making
      or maintaining LIBOR Rate Loans or the Letters of Credit or to reduce any amount
      receivable hereunder or under any Note, then, in any such case, the Borrower
      shall promptly pay such Lender, upon its demand, any additional amounts
      necessary to compensate such Lender for such additional cost or reduced amount
      receivable which such Lender reasonably deems to be material as determined
      by
      such Lender with respect to its LIBOR Rate Loans or Letters of Credit. A
      certificate as to any additional amounts payable pursuant to this Section
      submitted by such Lender (which certificate shall include a description of
      the
      basis for the computation), through the Administrative Agent, to the Borrower
      shall be conclusive in the absence of manifest error. Each Lender agrees to
      use
      reasonable efforts (including reasonable efforts to change its Domestic Lending
      Office or LIBOR Lending Office, as the case may be) to avoid or to minimize
      any
      amounts that might otherwise be payable pursuant to this paragraph of this
      Section; provided,
      however,
      that
      such efforts shall not cause the imposition on such Lender of any additional
      costs or legal or regulatory burdens deemed by such Lender in its reasonable
      discretion to be material.

    

    (b)    If
      any
      Lender shall have reasonably determined that the adoption of or any change
      in
      any Requirement of Law regarding capital adequacy or in the interpretation
      or
      application thereof or compliance by such Lender or any corporation controlling
      such Lender with any request or directive regarding capital adequacy (whether
      or
      not having the force of law) from any central bank or Governmental Authority
      made subsequent to the date hereof does or shall have the effect of reducing
      the
      rate of return on such Lender’s or such corporation’s capital as a consequence
      of its obligations hereunder to a level below that which such Lender or such
      corporation could have achieved but for such adoption, change or compliance
      (taking into consideration such Lender’s or such corporation’s policies with
      respect to capital adequacy) by an amount reasonably deemed by such Lender
      in
      its reasonable discretion to be material, then from time to time, within
      fifteen (15) days after demand by such Lender, the Borrower shall pay to
      such Lender such additional amount as shall be certified by such Lender as
      being
      required to compensate it for such reduction. Such a certificate as to any
      additional amounts payable under this Section submitted by a Lender (which
      certificate shall include a description of the basis for the computation),
      through the Administrative Agent, to the Borrower shall be conclusive absent
      manifest error.

    

    
      
        
          
          

        

        
          57

          
            

          

        

        
          
          

        

      

    

    

    (c)    In
      the
      event that any Lender demands payment of costs or additional amounts pursuant
      to
      Section 2.16 or Section 2.18 or asserts, pursuant to Section 2.15, that it
      is
      unlawful for such Lender to make LIBOR Rate Loans, then (subject to such
      Lender’s right to rescind such demand or assertion within 10 days after the
      notice from the Borrower referred to below) the Borrower may, upon 20 days’
prior written notice to such Lender and the Administrative Agent, elect to
      cause
      such Lender to assign at par its Loans and Commitments in full to one or more
      Persons selected by the Borrower so long as (i) each such Person is either
      another Lender or any Affiliate or Related Fund thereof or is otherwise
      satisfactory to the Administrative Agent, (ii) such Lender receives payment
      in
      full in cash of the outstanding principal amount of all Loans made by it and
      all
      accrued and unpaid interest thereon and all other amounts due and payable to
      such Lender as of the date of such assignment (including, without limitation,
      amounts owing pursuant to Sections 2.16, 2.17 and 2.18), (iii) each such Lender
      assignee agrees to accept such assignment and to assume all obligations of
      such
      assigning party hereunder in accordance with Section 9.6 and (iv) the costs
      and
      compensation paid by the Borrower under Section 2.16 or Section 2.18 shall
      be
      reduced as a result of such assignment.

    

    (d)    The
      agreements in this Section 2.16 shall survive the termination of this Agreement
      and payment of the Notes and all other amounts payable hereunder.

    

    
      	 	
              Section
                2.17

            	
              Indemnity.

            

    

    

    The
      Credit Parties hereby agree to indemnify each Lender and to hold such Lender
      harmless from any funding loss or expense which such Lender may sustain or
      incur
      as a consequence of (a) default by the Borrower in payment of the principal
      amount of or interest on any Loan by such Lender in accordance with the terms
      hereof, (b) default by the Borrower in accepting a borrowing after the Borrower
      has given a notice in accordance with the terms hereof, (c) default by the
      Borrower in making any prepayment after the Borrower has given a notice in
      accordance with the terms hereof, and/or (d) the making by the Borrower of
      a
      prepayment of a Loan, or the conversion thereof, on a day which is not the
      last
      day of the Interest Period with respect thereto, in each case including, but
      not
      limited to, any such loss or expense arising from interest or fees payable
      by
      such Lender to lenders of funds obtained by it in order to maintain its Loans
      hereunder. A certificate as to any additional amounts payable pursuant to this
      Section submitted by any Lender, through the Administrative Agent, to the
      Borrower (which certificate must be delivered to the Administrative Agent within
      thirty (30) days following such default, prepayment or conversion and shall
      include a description of the basis for the computation) shall be conclusive
      in
      the absence of manifest error. The agreements in this Section shall survive
      termination of this Agreement and payment of the Notes and all other amounts
      payable hereunder.

    

    
      
        
          
          

        

        
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              Section
                2.18

            	
              Taxes.

            

    

    

    (a)    All
      payments made by the Borrower hereunder or under any Note will be, except as
      provided in Section 2.18(b), made free and clear of, and without deduction
      or
      withholding for, any present or future taxes, levies, imposts, duties, fees,
      assessments or other charges of whatever nature now or hereafter imposed by
      any
      Governmental Authority or by any political subdivision or taxing authority
      thereof or therein with respect to such payments (but excluding any tax imposed
      on or measured by the net income or profits of a Lender pursuant to the laws
      of
      the jurisdiction in which it is organized or the jurisdiction in which the
      principal office or applicable lending office of such Lender is located or
      any
      subdivision thereof or therein) and all interest, penalties or additions to
      tax
      with respect thereto (all such non-excluded taxes, levies, imposts, duties,
      fees, assessments or other charges being referred to collectively as
“Taxes”
and
      all
      such excluded taxes referred to collectively as “Excluded
      Taxes”).
      If
      any Taxes are so levied or imposed, the Borrower agrees to pay the full amount
      of such Taxes, and such additional amounts as may be necessary so that every
      payment of all amounts due under this Agreement or under any Note, after
      withholding or deduction for or on account of any Taxes, will not be less than
      the amount provided for herein or in such Note. The Borrower will furnish to
      the
      Administrative Agent as soon as practicable after the date the payment of any
      Taxes is due pursuant to applicable law certified copies (to the extent
      reasonably available and required by law) of tax receipts evidencing such
      payment by the Borrower or such other evidence of payment reasonably
      satisfactory to the Lenders. The Borrower agrees to indemnify and hold harmless
      each Lender, and reimburse such Lender upon its written request (which shall
      specify in reasonable detail the nature and amount of such Taxes), for the
      amount of any Taxes so levied or imposed and paid by such Lender. Nothing
      contained in this Section shall require a Lender to make available its tax
      returns or provide any information relating to its taxes which it reasonably
      deems confidential.

    

    
      
        
          
          

        

        
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    (b)    Each
      Lender that is not a United States person (as such term is defined in Section
      7701(a)(30) of the Code) agrees to deliver to the Borrower and the
      Administrative Agent on or prior to the Closing Date, or in the case of a Lender
      that is an assignee or transferee of an interest under this Agreement pursuant
      to Section 9.6(c) (unless the respective Lender was already a Lender
      hereunder immediately prior to such assignment or transfer), on the date of
      such
      assignment or transfer to such Lender, (i) if the Lender is a “bank” within the
      meaning of Section 881(c)(3)(A) of the Code, two accurate and complete original
      signed copies of Internal Revenue Service Form W-8BEN, W-8ECI or W-8IMY with
      appropriate attachments (or successor forms) certifying such Lender’s
      entitlement to a complete exemption from United States withholding tax with
      respect to payments to be made under this Agreement and under any Note, or
      (ii)
      if the Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of
      the Code, Internal Revenue Service Form W-8BEN, W-8ECI or W-8IMY with
      appropriate attachments as set forth in clause (i) above, or (x) a certificate
      in substantially the form of Schedule
      2.18
      (any
      such certificate, a “Tax
      Exempt Certificate”)
      and
      (y) two accurate and complete original signed copies of Internal Revenue Service
      Form W-8BEN (or successor form) certifying such Lender’s entitlement to an
      exemption from United States withholding tax with respect to payments of
      interest to be made under this Agreement and under any Note. Each Lender that
      is
      a United States person as that term is defined in Section 7701(a)(30) of the
      Code , other than a Lender that may be treated as an exempt recipient based
      on
      the indicators described in Treasury Regulation Section 1.6049-4(c)(1)(ii),
      hereby agrees that it shall, no later than the Closing Date or, in the case
      of a
      Lender that is an assignee or transferee of an interest under this Agreement
      pursuant Section 9.6(c), on the date of such assignment or transfer to such
      Lender, deliver to the Borrower and the Administrative Agent two accurate,
      complete and signed copies of Internal Revenue service Form W-9 or successor
      form, certifying that such Lender is not subject to United States backup
      withholding tax. In addition, each Lender agrees that it will deliver updated
      versions of the foregoing, as applicable, (A)
      whenever the previous certification has become inaccurate in any material
      respect or (B)
      at any
      time reasonably requested by the Borrower or the Administrative Agent, together
      with such other forms as may be required in order to confirm or establish the
      entitlement of such Lender to a continued exemption from or reduction in United
      States withholding tax with respect to payments under this Agreement and any
      Note. Notwithstanding anything to the contrary contained in Section 2.18(a),
      but
      subject to the immediately succeeding sentence, (x) the Borrower shall be
      entitled, to the extent it is required to do so by law, to deduct or withhold
      Taxes imposed by the United States (or any political subdivision or taxing
      authority thereof or therein) from interest, fees or other amounts payable
      hereunder for the account of any Lender to the extent that such Lender has
      not
      provided to the Borrower U.S. Internal Revenue Service Forms that establish
      a
      complete exemption from such deduction or withholding and (y) the Borrower
      shall
      not be obligated pursuant to Section 2.18(a) hereof to gross-up payments to
      be
      made to a Lender in respect of Taxes imposed by the United States or to
      indemnify such Lender for any withholding Taxes imposed by the United States
      if
      (I) such Lender has not provided to the Borrower the Internal Revenue Service
      Forms required to be provided to the Borrower pursuant to this Section or (II)
      in the case of a payment, other than interest, to a Lender described in clause
      (ii) above, to the extent that such Forms do not establish a complete exemption
      from withholding of such Taxes. Notwithstanding anything to the contrary
      contained in the preceding sentence or elsewhere in this Section, the Borrower
      agrees to pay additional amounts and to indemnify each Lender in the manner
      set
      forth in Section 2.18(a) (without regard to the identity of the jurisdiction
      requiring the deduction or withholding) in respect of any amounts deducted
      or
      withheld by it as described in the immediately preceding sentence as a result
      of
      any changes after the Closing Date in any applicable law, treaty, governmental
      rule, regulation, guideline or order, or in the interpretation thereof, relating
      to the deducting or withholding of Taxes.

    

    (c)    Each
      Lender agrees to use reasonable efforts (including reasonable efforts to change
      its Domestic Lending Office or LIBOR Lending Office, as the case may be) to
      avoid or to minimize any amounts which might otherwise be payable pursuant
      to
      this Section; provided,
      however,
      that
      such efforts shall not cause the imposition on such Lender of any additional
      costs or legal or regulatory burdens deemed by such Lender in its reasonable
      discretion to be material.

    

    
      
        
          
          

        

        
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    (d)    If
      the
      Borrower pays any additional amount pursuant to this Section with respect to
      a
      Lender, such Lender shall use reasonable efforts to obtain a refund of tax
      or
      credit against its tax liabilities on account of such payment; provided
      that
      such Lender shall have no obligation to use such reasonable efforts if either
      (i) it is in an excess foreign tax credit position or (ii) it believes in good
      faith, in its sole discretion, that claiming a refund or credit would cause
      adverse tax consequences to it. In the event that such Lender receives such
      a
      refund or credit, such Lender shall pay to the Borrower an amount that such
      Lender reasonably determines is equal to the net tax benefit obtained by such
      Lender as a result of such payment by the Borrower. In the event that no refund
      or credit is obtained with respect to the Borrower’s payments to such Lender
      pursuant to this, then such Lender shall upon request provide a certification
      that such Lender has not received a refund or credit for such payments. Nothing
      contained in this Section shall require a Lender to disclose or detail the
      basis
      of its calculation of the amount of any tax benefit or any other amount or
      the
      basis of its determination referred to in the proviso to the first sentence
      of
      this Section to the Borrower or any other party.

    

    (e)    The
      agreements in this Section shall survive the termination of this Agreement
      and
      the payment of the Notes and all other amounts payable hereunder.

    

    
      	 	
              Section
                2.19

            	
              Indemnification;
                Nature of Issuing Lender’s Duties.

            

    

    

    (a)    In
      addition to its other obligations under Section 2.3, each Credit Party
      hereby agrees to protect, indemnify, pay and save each Issuing Lender harmless
      from and against any and all claims, demands, liabilities, damages, losses,
      charges, and reasonable out of pocket costs and expenses (including reasonable
      attorneys’ fees) that the Issuing Lender may incur or be subject to as a
      consequence, direct or indirect, of (i) the issuance of any Letter of Credit
      or
      (ii) the failure of the Issuing Lender to honor a drawing under a Letter of
      Credit as a result of 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 “Government
      Acts”).

    

    (b)    As
      between the Credit Parties, the Issuing Lender and each Lender, the Credit
      Parties shall assume all risks of the acts, omissions or misuse of any Letter
      of
      Credit by the beneficiary thereof. Neither the Issuing Lender nor any Lender
      shall be responsible for: (i) the form, validity, sufficiency, accuracy,
      genuineness or legal effect of any document submitted by any party in connection
      with the application for and issuance of any Letter of Credit, even if it should
      in fact prove to be in any or all respects invalid, insufficient, inaccurate,
      fraudulent or forged; (ii) the validity or sufficiency of any instrument
      transferring or assigning or purporting to transfer or assign any Letter of
      Credit or the rights or benefits thereunder or proceeds thereof, in whole or
      in
      part, that may prove to be invalid or ineffective for any reason; (iii) failure
      of the beneficiary of a Letter of Credit to comply fully with conditions
      required in order to draw upon a Letter of Credit; (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 a Letter of Credit or of the proceeds thereof; and (vii) any
      consequences arising from causes beyond the control of the Issuing Lender or
      any
      Lender, including, without limitation, any Government Acts. None of the above
      shall affect, impair, or prevent the vesting of the Issuing Lender’s rights or
      powers hereunder.

    

    
      
        
          
          

        

        
          61

          
            

          

        

        
          
          

        

      

    

    

    (c)    In
      furtherance and extension and not in limitation of the specific provisions
      hereinabove set forth, any action taken or omitted by the Issuing Lender or
      any
      Lender, under or in connection with any Letter of Credit or the related
      certificates, if taken or omitted in good faith, shall not put such Issuing
      Lender or such Lender under any resulting liability to the Borrower. It is
      the
      intention of the parties that this Agreement shall be construed and applied
      to
      protect and indemnify the Issuing Lender and each Lender against any and all
      risks involved in the issuance of the Letters of Credit, all of which risks
      are
      hereby assumed by the Credit Parties, including, without limitation, any and
      all
      risks of the acts or omissions, whether rightful or wrongful, of any
      Governmental Authority. The Issuing Lender and the Lenders shall not, in any
      way, be liable for any failure by the Issuing Lender or anyone else to pay
      any
      drawing under any Letter of Credit as a result of any Government Acts or any
      other cause beyond the control of the Issuing Lender and the
      Lenders.

    

    (d)    Nothing
      in this Section 2.19 is intended to limit the reimbursement obligation of the
      Borrower contained in Section 2.3(d) hereof. The obligations of the Credit
      Parties under this Section 2.19 shall survive the termination of this Agreement.
      No act or omissions of any current or prior beneficiary of a Letter of Credit
      shall in any way affect or impair the rights of the Issuing Lender to enforce
      any right, power or benefit under this Agreement.

    

    (e)    Notwithstanding
      anything to the contrary contained in this Section 2.19, the Credit Parties
      shall have no obligation to indemnify any Issuing Lender or any Lender in
      respect of any liability incurred by such Issuing Lender or such Lender arising
      out of the gross negligence or willful misconduct of the Issuing Lender or
      such
      Lender (including action not taken by an Issuing Lender), as determined by
      a
      court of competent jurisdiction pursuant to a final non-appealable
      judgment.

    

    

    ARTICLE
      III

    

    REPRESENTATIONS
      AND WARRANTIES

    

    To
      induce
      the Lenders to enter into this Agreement and to make the Extensions of Credit
      herein provided for, the Company and its Subsidiaries hereby represent and
      warrant to the Administrative Agent and each Lender that: 

    

    
      
        
          
          

        

        
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              Section
                3.1

            	
              Financial
                Condition.

            

    

    

    The
      Borrower has delivered to the Administrative Agent and the Lenders (a) balance
      sheets and the related statements of income and of cash flows of (i) the
      Company and its Subsidiaries for the fiscal years ended December 31, 2003,
      December 31, 2004 and December 31, 2005 audited by Ernst & Young,
      LLP and
      (ii) the Acquired Company and its Subsidiaries for the fiscal years ended
      December 31, 2003, December 31, 2004 and December 31, 2005 audited
      by Carlin,
      Charron & Rosen, LLP, (b) a company-prepared unaudited balance sheet and the
      related statement of income and of cash flow of the Borrower for fiscal years
      ended December 31, 2004 and December 31, 2005, (c) company-prepared
      unaudited balance sheets and related statements of income and cash flows for
      the
      Company, the Borrower and the Acquired Company and their respective Subsidiaries
      for that portion of the fiscal year commencing on January 1, 2006 through the
      month most recently ended prior to the Closing Date (provided
      that if
      the Closing Date shall occur prior to the twentieth day of any month, then
      such
      financial statements shall be provided as of the end of the month immediately
      preceding the most recent month end), (d)  good faith estimated (subject
      only to completion of purchase price accounting and other related adjustments)
      pro forma unaudited balance sheets of the Company and its Subsidiaries and
      the
      Borrower and its Subsidiaries as of the last day of the month most recently
      ended prior to the Closing Date (provided
      that if
      the Closing Date shall occur prior to the twentieth day of any month, then
      such
      financial statements shall be provided as of the end of the month immediately
      preceding the most recent month end), in each case prepared giving effect to
      the
      Acquisition and the initial Extensions of Credit made hereunder on a Pro Forma
      Basis and in form and substance reasonably satisfactory to the Administrative
      Agent and (e) the seven-year projections of the Company and the Borrower, in
      form and substance reasonably satisfactory to the Administrative Agent. The
      financial statements referred to in subsections (a)-(d) above are complete
      and
      correct and present fairly the financial condition of the Company, the Borrower,
      the Acquired Company and their respective Subsidiaries as of such dates, subject
      in the case of unaudited financials to the absence of footnotes and immaterial
      year end adjustments. All such financial statements and projections, including
      the related schedules and notes thereto, have been prepared in accordance with
      GAAP applied consistently throughout the periods involved (except as disclosed
      therein).

    

    
      	 	
              Section
                3.2

            	
              No
                Change.

            

    

    

    Since
      December 31, 2005 there has been no development or event which has had or could
      reasonably be expected to have a Material Adverse Effect and no Internal Control
      Event has occurred.

    

    
      	 	
              Section
                3.3

            	
              Corporate
                Existence; Compliance with Law.

            

    

    

    Each
      of
      the Credit Parties (a) is duly organized, validly existing and in good standing
      under the laws of the jurisdiction of its incorporation, organization or
      formation, (b) has the requisite power and authority and the legal right to
      own
      and operate all its property, to lease the property it operates as lessee and
      to
      conduct the business in which it is currently engaged and has taken all actions
      necessary to maintain all rights, privileges, licenses and franchises necessary
      or required in the normal conduct of its business, except to the extent that
      the
      failure to do so could not, individually or in the aggregate, reasonably be
      expected to have a Material Adverse Effect, (c) is duly qualified to conduct
      business and is in good standing under the laws of (i)
      the
      jurisdiction of its organization or formation and (ii) each
      other jurisdiction where its ownership, lease or operation of property or the
      conduct of its business requires such qualification except to the extent that
      the failure to so qualify or be in good standing could not, individually or
      in
      the aggregate, reasonably be expected to have a Material Adverse Effect and
      (d)
      is in compliance with all Requirements of Law except to the extent that the
      failure to comply therewith could not, in the aggregate, reasonably be expected
      to have a Material Adverse Effect. Without limiting the generality of the
      foregoing, each of the Credit Parties represents that: 

    

    
      
        
          
          

        

        
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    (i)    
(A)
      To
      the knowledge of any Responsible Officer of any Credit Party, there is no Credit
      Party or individual employed by such Credit Party who may reasonably be expected
      to have criminal culpability or to be excluded or suspended from participation
      in any Medical Reimbursement Program for their corporate or individual actions
      or failures to act where such culpability, exclusion and/or suspension has
      or
      could be reasonably expected to result in a Material Adverse Effect; and (B)
      there is no member of management continuing to be employed by any Credit Party
      who may reasonably be expected to have individual culpability for matters under
      investigation by any Governmental Authority where such culpability has or could
      reasonably be expected to result in a Material Adverse Effect unless such member
      of management has been, within a reasonable period of time after discovery
      of
      such actual or potential culpability, either suspended or removed from positions
      of responsibility related to those activities under challenge by the
      Governmental Authority;

    

    (ii)    current
      billing policies, arrangements, protocols and instructions comply with expressly
      stated requirements of Medical Reimbursement Programs and are administered
      by
      properly trained personnel except where any such failure to comply could not
      reasonably be expected to result in a Material Adverse Effect; 

    

    (iii)   current
      medical director compensation arrangements and other arrangements with referring
      physicians comply with state and federal self-referral and anti-kickback laws,
      including without limitation 42 U.S.C. Section 1320a-7b(b)(1) - (b)(2) and
      42
      U.S.C. Section 1395nn, except where any such failure to comply could not
      reasonably be expected to result in a Material Adverse Effect; 

    

    (iv)   none
      of
      the Credit Parties is currently, nor has in the past been subject to any
      federal, state, local governmental or private payor civil or criminal
      inspections, investigations, inquiries or audits involving and/or related to
      its
      activities, except for routine inspections, investigations, inquiries or audits
      in the ordinary course not anticipated to result in a Material Adverse Effect;
      and

    

    (v)    except
      as
      set forth on Schedule
      3.3,
      no
      Credit Party: (A)
      has had
      a civil monetary penalty assessed against it pursuant to 42 U.S.C. §1320a 7a,
      (B)
      has
      been excluded from participation in a Federal Health Care Program (as that
      term
      is defined in 42 U.S.C. §1320a 7b), (C)
      has
      been convicted (as that term is defined in 42 C.F.R. §1001.2) of any of those
      offenses described in 42 U.S.C. §1320a 7b or 18 U.S.C. §§669, 1035, 1347, 1518,
      or (D)
      to the
      knowledge of any Responsible Officer, has been involved or named in a U.S.
      Attorney complaint made or any other action taken pursuant to the False Claims
      Act under 31 U.S.C. §§3729 3731 or qui tam action brought pursuant to 31 U.S.C.
§3729 et seq. 

    

    
      
        
          
          

        

        
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              Section
                3.4

            	
              Corporate
                Power; Authorization; Enforceable Obligations.

            

    

    

    Each
      of
      the Credit Parties has full power and authority and the legal right to make,
      deliver and perform the Credit Documents to which it is party and has taken
      all
      necessary limited liability company or corporate or other action to authorize
      the execution, delivery and performance by it of the Credit Documents to which
      it is party. No consent or authorization of, filing with, notice to or other
      act
      by or in respect of, any Governmental Authority or any other Person is required
      in connection with the borrowings hereunder or with the execution, delivery
      or
      performance of any Credit Document by the Credit Parties (other than those
      which
      have been obtained) or with the validity or enforceability of any Credit
      Document against the Credit Parties (except such filings as are necessary in
      connection with the perfection of the Liens created by such Credit Documents).
      This Credit Agreement has been, and each other Credit Document when delivered
      hereunder will have been, duly executed and delivered on behalf of each of
      the
      Credit Parties party thereto. Each Credit Document to which it is a party
      constitutes a legal, valid and binding obligation of each of the Credit Parties,
      enforceable against such Credit Party in accordance with its terms, except
      as
      enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium or similar laws affecting the enforcement of
      creditors’ rights generally and by general equitable principles (whether
      enforcement is sought by proceedings in equity or at law).

    

    
      	 	
              Section
                3.5

            	
              Status
                Under Certain Statutes.

            

    

    

    No
      Credit
      Party is (i) required to be registered as an “investment company”, or
“controlled” by a Person that is required to be registered as an “investment
      company”, under the Investment Company Act of 1940, as amended, or (ii) subject
      to regulation under any federal or state statute or regulation limiting its
      ability to incur the Credit Party Obligations.

    

    
      	 	
              Section
                3.6

            	
              Margin
                Regulations.

            

    

    

    No
      part
      of the proceeds of any Loan hereunder will be used directly or indirectly for
      any purpose which does not comply with the provisions of Regulation T, U or
      X of
      the Board of Governors of the Federal Reserve System as now and from time to
      time hereafter in effect. The Company and its Subsidiaries taken as a group
      do
      not own “margin stock” except as identified in the financial statements referred
      to in Section 3.1 and the aggregate value of all “margin stock” owned by the
      Company and its Subsidiaries taken as a group does not exceed 25% of the value
      of their assets.

    

    
      	 	
              Section
                3.7

            	
              No
                Legal Bar; No Default.

            

    

    

    The
      execution, delivery and performance of the Credit Documents, the borrowings
      thereunder and the use of the proceeds of the Loans (a)
      will
      not violate any Requirement of Law in any material respect or any material
      Contractual Obligation of any Credit Party (except those as to which waivers
      or
      consents have been obtained), (b)
      will
      not conflict with, result in a breach of or constitute a default under the
      articles of incorporation, bylaws, articles of organization, operating agreement
      or other organization documents of the Credit Parties or any Material Contract
      to which such Person is a party or by which any of its properties may be bound
      or any material approval or material consent from any Governmental Authority
      relating to such Person, and (c)
      will
      not result in, or require, the creation or imposition of any Lien on any Credit
      Party’s properties or revenues pursuant to any Requirement of Law or Contractual
      Obligation other than the Liens arising under or contemplated in connection
      with
      the Credit Documents or Permitted Liens. No Credit Party is in default under
      or
      with respect to any of its material Contractual Obligations in any material
      respect. No Default or Event of Default has occurred and is
      continuing.

    

    
      
        
          
          

        

        
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              Section
                3.8

            	
              No
                Material Litigation.

            

    

    

    As
      of the
      Closing Date, set forth on Schedule
      3.8
      is a
      description of any material litigation, investigation, claim, criminal
      prosecution, civil investigative demand, criminal or civil fine and penalty,
      or
      other proceeding of or before any arbitrator or Governmental Authority
      (including but not limited to those regulatory agencies responsible for
      licensing, accrediting or issuing Medicare or Medicaid certifications) that
      is
      pending or, to the best knowledge of any Responsible Officer, threatened by
      or
      against the Company or any of its Subsidiaries or against any of its or their
      respective properties or revenues. No litigation, investigation, claim, criminal
      prosecution, civil investigative demand, imposition of criminal or civil fines
      and penalties, or any other proceeding of or before any arbitrator or
      Governmental Authority (including but not limited to those regulatory agencies
      responsible for licensing, accrediting or issuing Medicare or Medicaid
      certifications) is pending or, to the best knowledge of any Responsible Officer,
      threatened by or against the Company or any of its Subsidiaries or against
      any
      of its or their respective properties or revenues (a) with respect to the Credit
      Documents or any Loan or any of the transactions contemplated hereby, or (b)
      which could reasonably be expected to be adversely determined and if so
      adversely determined could reasonably be expected to have, individually or
      in
      the aggregate, a Material Adverse Effect. 

    

    
      	 	
              Section
                3.9

            	
              ERISA.

            

    

    

    No
      Reportable Event that could reasonably be expected to result in a Material
      Adverse Effect, and no “accumulated funding deficiency” (within the meaning of
      Section 412 of the Code or Section 302 of ERISA), has occurred during the
      five-year period prior to the date on which this representation is made or
      deemed made with respect to any Single Employer Plan. Each Single Employer
      Plan
      has complied in all material respects with the applicable provisions of ERISA
      and the Code. No termination of a Single Employer Plan has occurred resulting
      in
      any liability that has remained underfunded. No Lien in favor of a Single
      Employer Plan or in favor of the PBGC with respect to a Single Employer Plan
      has
      arisen, during the five-year period prior to the date on which this
      representation is made or deemed made with respect to any Single Employer Plan
      (other than a Lien with respect to a liability which has been satisfied in
      full). The present value of all accrued benefits under each Single Employer
      Plan
      (based on those assumptions used to fund such Plans) did not, as of the last
      annual valuation date prior to the date on which this representation is made
      or
      deemed made, exceed the value of the assets of such Plan allocable to such
      accrued benefits, except to the extent that such underfunding could not
      reasonably be expected to result in a Material Adverse Effect. Neither any
      Credit Party nor any Commonly Controlled Entity has any outstanding liability
      for a complete or partial withdrawal from a Multiemployer Plan, except to the
      extent such liability could not reasonably be expected to result in a Material
      Adverse Effect.

    

    
      
        
          
          

        

        
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              Section
                3.10

            	
              Environmental
                Matters.

            

    

    

    Except
      as
      could not reasonably be expected to have a Material Adverse Effect:

    

    (a)    The
      facilities and properties owned, leased or operated by the Company or any of
      its
      Subsidiaries (the “Properties”)
      do not
      contain any Materials of Environmental Concern in amounts or concentrations
      that
      constitute a violation of or a liability under, any Environmental
      Law.

    

    (b)    The
      Properties, all operations of the Company and/or its Subsidiaries at the
      Properties, and the business operated by the Company or any of its Subsidiaries
      (the “Business”)
      are in
      compliance, and have in the last two years been in compliance, with all
      applicable Environmental Laws.

    

    (c)    Neither
      the Company nor any of its Subsidiaries has received any written notice of
      violation, alleged violation, non-compliance, liability or potential liability
      regarding environmental matters or compliance with Environmental Laws with
      regard to any of the Properties or the Business, nor does any Responsible
      Officer of the Company or any of its Subsidiaries have knowledge that any such
      notice will be received or is being threatened.

    

    (d)    Materials
      of Environmental Concern have not been transported or disposed of from the
      Properties by the Company or any of its Subsidiaries in violation of any
      Environmental Law, and neither the Company nor any of its Subsidiaries has
      received any written notice of any liability or potential liability for any
      Materials of Environmental Concern transported or disposed of from the
      Properties by the Company or any of its Subsidiaries. Materials of Environmental
      Concern have not been generated, treated, stored or disposed of by the Company
      or any of its Subsidiaries at, on or under any of the Properties in violation
      of
      any applicable Environmental Law, and neither the Company nor any of its
      Subsidiaries is liable for any Materials of Environmental Concern that have
      been
      generated, treated, stored or disposed of at, on or under any of the
      Properties.

    

    (e)    No
      judicial proceeding or governmental or administrative action is pending or,
      to
      the knowledge of any Responsible Officer, threatened, under any Environmental
      Law to which the Company or any Subsidiary is or, with respect to any threatened
      proceeding or action, is reasonably expected to become a party with respect
      to
      the Properties or the Business, nor are there any governmental consent decrees,
      consent orders or administrative orders with respect to which the Company or
      any
      of its Subsidiaries is a party, or other administrative or judicial requirements
      applicable to the Company or any of its Subsidiaries outstanding under any
      Environmental Law with respect to the Properties or the Business.

    

    
      
        
          
          

        

        
          67

          
            

          

        

        
          
          

        

      

    

    

    (f)    
There
      has
      been no release of Materials of Environmental Concern by the Company or any
      of
      its Subsidiaries or for which the Company or any of its Subsidiaries is liable
      at or from the Properties, or arising from or related to the operations of
      the
      Company or any of its Subsidiaries in connection with the Properties or
      otherwise in connection with the Business, in violation of, or in amounts or
      in
      a manner that give rise to liability, under Environmental Laws, except for
      any
      such release that has been remediated in accordance with applicable
      Environmental Laws.

    

    
      	 	
              Section
                3.11

            	
              Use
                of Proceeds.

            

    

    

    The
      proceeds of the Extensions of Credit shall be used solely by the Borrower to
      (i)
      finance
      a portion of the Acquisition, (ii)
      pay any
      fees and expenses in connection with the Acquisition, (iii)
      pay any
      fees and expenses owing to the Lenders and the Administrative Agent in
      connection with this Agreement and the other Credit Documents (including those
      under the Fee Letters), (iv)
      refinance certain existing indebtedness of the Company and its Subsidiaries,
      and
      (v)
      provide
      for working capital, capital expenditures and other general corporate purposes
      of the Borrower and its Subsidiaries, including, without limitation, Permitted
      Acquisitions.

    

    
      	 	
              Section
                3.12

            	
              Subsidiaries.

            

    

    

    Set
      forth
      on Schedule
      3.12
      is a
      complete and accurate list of all direct and indirect Subsidiaries of the
      Company as of the Closing Date. Information on the attached Schedule includes
      jurisdiction of incorporation or organization; the number of shares of each
      class of Capital Stock or other equity interests outstanding; the number and
      percentage of outstanding shares of each class of Capital Stock held by each
      shareholder; and the number and effect, if exercised, of all outstanding
      options, warrants, rights of conversion or purchase and similar rights. The
      outstanding Capital Stock and other equity interests of all such Subsidiaries
      is
      validly issued, fully paid and non-assessable and is owned, free and clear
      of
      all Liens (other than those arising under or contemplated in connection with
      the
      Credit Documents). There are no outstanding subscriptions, options, warrants,
      calls, rights or other agreements or commitments (other than stock options
      granted to employees or directors, directors’ qualifying shares or arrangements
      with respect to the purchase of the remaining ownership interest in German
      Breg
      as contemplated in the German Buyout) of any nature relating to any Capital
      Stock of the Company or any Subsidiary, except as contemplated in connection
      with the Credit Documents. 

    

    
      	 	
              Section
                3.13

            	
              Ownership.

            

    

    

    Each
      of
      the Company and its Subsidiaries is the owner of, and has good and insurable
      title (in the case of real property) to or an indefeasible leasehold interest
      in, all of its respective assets and none of such assets are subject to any
      Lien
      on such party’s interest other than Permitted Liens. Each Credit Party and its
      Subsidiaries enjoys peaceful and undisturbed possession under all of its leases
      and all such leases are valid and subsisting and in full force and effect.
      

    

    
      
        
          
          

        

        
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              Section
                3.14

            	
              Indebtedness.

            

    

    

    Except
      as
      otherwise permitted under Section 6.1, the Company and its Subsidiaries have
      no
      Indebtedness.

     

    
      
        	 	
                Section
                  3.15

              	
                Taxes.

              

      

       

    

    Each
      of
      the Company and its Subsidiaries has filed, or caused to be filed, all tax
      returns required to be filed and paid (a) all amounts of taxes shown thereon
      to
      be due (including interest and penalties) and (b) all other taxes, fees,
      assessments and other governmental charges (including mortgage recording taxes,
      documentary stamp taxes and intangibles taxes) owing by it, except for such
      taxes (i) that are not yet delinquent or (ii) that are being contested in good
      faith and by proper proceedings, and against which adequate reserves are being
      maintained in accordance with GAAP. Neither the Company nor any of its
      Subsidiaries are aware as of the Closing Date of any proposed tax assessments
      against it or any of its Subsidiaries that, individually or in the aggregate,
      could reasonably be expected to have a Material Adverse Effect.

    

    
      	 	
              Section
                3.16

            	
              Intellectual
                Property.

            

    

    

    To
      the
      knowledge of any Responsible Officer, each of the Company and its Subsidiaries
      owns, or has the legal right to use, all material Intellectual Property
      necessary for each of them to conduct its business as currently conducted.
      Set
      forth on Schedule
      3.16
      is a
      list of all material Intellectual Property (excluding unregistered trademarks
      to
      the extent not used or not reasonably identifiable by the Credit Parties) owned
      by the Credit Parties or that any Credit Party has the right to use (excluding
      standard “off the shelf” licensed software used in the ordinary course of
      business). To the knowledge of any Responsible Officer, except pursuant to
      a
      license agreement disclosed in Schedule
      3.16
      hereto,
      or as otherwise disclosed in Schedule
      3.16
      hereto,
      (a) the Credit Parties have the right to use the Intellectual Property disclosed
      in Schedule
      3.16
      hereto
      in perpetuity and without payment of royalties, and (b) all registrations with
      and applications to Governmental Authorities in respect of such Intellectual
      Property are valid or subsisting and in full force and effect and are not
      subject to the payment of any taxes or maintenance fees or the taking of any
      interest therein, held by the Company or any of its Subsidiaries to maintain
      their validity or effectiveness in any material respects. To the knowledge
      of
      any Responsible Officer, neither the Company nor any of its Subsidiaries is
      in
      default (or with the giving of notice or lapse of time or both, would be in
      default) under any license to use any material Intellectual Property; other
      than
      as noted on Schedule
      3.16,
      no
      claim has been asserted in writing and is pending by any Person, in any material
      respects, seeking to restrict or deny the use of any material Intellectual
      Property or the validity or effectiveness of any such Intellectual Property,
      nor
      does any Responsible Officer know of any such claim; and, to the knowledge
      of
      any Responsible Officer, the use of any material Intellectual Property by the
      Company or any of its Subsidiaries does not infringe on the rights of any
      Person. Schedule
      3.16
      may be
      updated from time to time by the Borrower to include new Intellectual Property
      by giving written notice thereof to the Administrative Agent.

    

    
      
        
          
          

        

        
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              Section
                3.17

            	
              Solvency.

            

    

    

    Each
      of
      the Credit Parties is Solvent.

    

    
      	 	
              Section
                3.18

            	
              Investments.

            

    

    

    All
      Investments of each of the Company and its Subsidiaries are Permitted
      Investments.

    

    
      	 	
              Section
                3.19

            	
              Location
                of Collateral.

            

    

    

    Set
      forth
      on Schedule
      3.19(a)
      is a
      list of the domestic real Properties (whether owned or leased) of the Credit
      Parties as of the Closing Date with street address, county and state where
      located. Set forth on Schedule
      3.19(b)
      is a
      list of all locations where any domestic tangible personal property of the
      Credit Parties with a fair market value in excess of $250,000 is located as
      of
      the Closing Date (other than trade show booths and related assets and tangible
      personal property in transit, held by sales representatives or on consignment
      with third parties), including county and state where located. Set forth on
      Schedule
      3.19(c)
      is the
      state of incorporation or organization, chief executive office, the principal
      place of business, the tax identification number and organization identification
      number of each of the Credit Parties as of the Closing Date. Set forth on
Schedule
      3.19(d)
      is a
      list of all Mortgaged Properties as of the Closing Date.

    

    
      	 	
              Section
                3.20

            	
              No
                Burdensome Restrictions.

            

    

    

    Neither
      the Company nor any of its Subsidiaries is a party to any agreement or
      instrument or subject to any other obligation or any charter or corporate
      restriction or any provision of any applicable law, rule or regulation that,
      individually or in the aggregate, could reasonably be expected to have a
      Material Adverse Effect.

    

    
      	 	
              Section
                3.21

            	
              Labor
                Matters.

            

    

    

    Except
      as
      otherwise set forth in Schedule
      3.21
      hereto,
      as of the Closing Date, (a) there are no collective bargaining agreements or
      Multiemployer Plans covering the employees of the Company or any of its
      Subsidiaries, (b) neither the Company nor any of its Subsidiaries has suffered
      any material strikes, walkouts, work stoppages or other material labor
      difficulty within the last five years, (c) no Responsible Officer of the Company
      or any of its Subsidiaries has knowledge of any material potential or pending
      strike, walkout or work stoppage and (d) no material unfair labor practice
      complaint is pending or, to the best knowledge of any Responsible Officer,
      threatened against the Company or any of its Subsidiaries before any
      Governmental Authority.

    

    
      	 	
              Section
                3.22

            	
              Security
                Documents.

            

    

    

    The
      Security Documents create (or will create upon the execution and delivery
      thereof) valid security interests in, and Liens on, the Collateral purported
      to
      be covered thereby, which security interests and Liens are currently (or will
      be
      upon the execution and delivery of the Security Documents and upon the filing
      of
      appropriate financing statements, the recordation of the applicable Mortgage
      Instruments, the filing of appropriate notices with the United States Patent
      and
      Trademark Office and the United States Copyright Office, in each case in favor
      of the Administrative Agent, on behalf of the Lenders) perfected security
      interests and Liens, prior to all other Liens other than Permitted Liens that
      would be prior to the Liens in favor of the Administrative Agent as a matter
      of
      law.

    

    
      
        
          
          

        

        
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              Section
                3.23

            	
              Accuracy
                and Completeness of Information.

            

    

    

    All
      factual written information (other than written financial projections)
      heretofore, contemporaneously or hereafter furnished by or on behalf of any
      Credit Party or any of its Subsidiaries to the Administrative Agent or any
      Lender for purposes of or in connection with this Agreement or any other Credit
      Document, or any transaction contemplated hereby or thereby, is or will be
      true
      and accurate in all material respects and not incomplete by omitting to state
      any material fact necessary to make such information not misleading. The written
      financial projections concerning the Company and its Subsidiaries heretofore,
      contemporaneously or hereafter furnished by or on behalf of any Credit Party
      or
      any of its Subsidiaries to the Administrative Agent or any Lender for purposes
      of or in connection with this Agreement or any other Credit Document, or any
      transaction contemplated hereby or thereby, have been and will be prepared
      in
      good faith based upon assumptions that the Credit Parties believe to be
      reasonable at the time of such preparation. There is no fact now known to the
      Borrower, any other Credit Party or any of their Subsidiaries which has, or
      could reasonably be expected to have, a Material Adverse Effect, which fact
      has
      not been set forth herein, in the financial statements of the Company and its
      Subsidiaries furnished to the Administrative Agent and/or the Lenders, or in
      any
      opinion or other written statement made or furnished by any Credit Party to
      the
      Administrative Agent and/or the Lenders.

    

    
      	 	
              Section
                3.24

            	
              Fraud
                and Abuse.

            

    

    

    To
      the
      knowledge of any Responsible Officer, neither the Company and its Subsidiaries
      nor any of their officers or directors, have engaged in any activities which
      are
      prohibited under federal Medicare and Medicaid statutes, 42 U.S.C. §1320a-7b, or
      42 U.S.C. §1395nn or the regulations promulgated pursuant to such statutes or
      related state or local statutes or regulations, or which are prohibited by
      binding rules of professional conduct, including but not limited to the
      following: (a) knowingly and willfully making or causing to be made a false
      statement or representation of a material fact in any applications for any
      benefit or payment; (b) knowingly and willfully making or causing to be
      made any false statement or representation of a material fact for use in
      determining rights to any benefit or payment; (c) failing to disclose knowledge
      by a claimant of the occurrence of any event affecting the initial or continued
      right to any benefit or payment on its own behalf or on behalf of another with
      the intent to secure such benefit or payment fraudulently; (d) knowingly and
      willfully soliciting or receiving any remuneration (including any kickback,
      bribe or rebate), directly or indirectly, overtly or covertly, in cash or in
      kind or offering to pay such remuneration (i) in return for referring an
      individual to a Person for the furnishing or arranging for the furnishing of
      any
      item or service for which payment may be made in whole or in part by Medicare,
      Medicaid or other applicable third party payors, or (ii) in return for
      purchasing, leasing or ordering or arranging for or recommending the purchasing,
      leasing or ordering of any good, facility, service, or item for which payment
      may be made in whole or in part by Medicare, Medicaid or other applicable third
      party payors, except in each case for any such prohibited activity that could
      not reasonably be expected to result in a Material Adverse Effect.

    

    
      
        
          
          

        

        
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              Section
                3.25

            	
              Licensing
                and Accreditation.

            

    

    

    Each
      of
      the Company and its Subsidiaries has, to the extent applicable: (a)
      obtained and maintains in good standing all required licenses; (b)
      to the
      extent prudent and customary in the industry in which it is engaged, obtained
      and maintains accreditation from all generally recognized accrediting agencies;
      (c)
      obtained and maintains Medicaid Certification and Medicare Certification; and
      (d)
      entered
      into and maintains in good standing its Medicare Provider Agreement and its
      Medicaid Provider Agreement, except in each case to the extent the absence
      of
      such license, accreditation, certification or good standing could not reasonably
      be expected to have a Material Adverse Effect. All such required licenses are
      in
      full force and effect on the date hereof and have not been revoked or suspended
      or otherwise limited, except in each case to the extent such revocation,
      suspension or other limitation could not reasonably be expected to have a
      Material Adverse Effect.

    

    
      	 	
              Section
                3.26

            	
              Other
                Regulatory Protection.

            

    

    

    Each
      of
      the Company and its Subsidiaries represent that it does not manufacture
      pharmaceutical products and is in compliance with all applicable rules,
      regulations and other requirements of the Food and Drug Administration
      (“FDA”),
      the
      Federal Trade Commission (“FTC”),
      the
      Occupational Safety and Health Administration (“OSHA”),
      the
      Consumer Product Safety Commission, the United States Customs Service and the
      United States Postal Service and other state or federal regulatory authorities
      or jurisdictions in which the Company or any of its Subsidiaries do business
      or
      distribute and market products, except to the extent that any such
      noncompliance, individually or in the aggregate, could not reasonably be
      expected to have a Material Adverse Effect. Neither the FDA, the FTC, OSHA,
      the
      Consumer Product Safety Commission, nor any other such regulatory authority
      has
      requested (or, to the knowledge of any Responsible Officer, are considering
      requesting) any product recalls or other enforcement actions that (a) if not
      complied with, individually or in the aggregate, could reasonably be expected
      to
      result in a Material Adverse Effect and (b) with which the Company and its
      Subsidiaries have not complied within the time period allowed. 

    

    
      	 	
              Section
                3.27

            	
              Reimbursement
                from Third Party Payors.

            

    

    

    The
      accounts receivable of the Company and its Subsidiaries have been and will
      continue to be adjusted to reflect the reimbursement policies (both those most
      recently published in writing as well as those not in writing which have been
      verbally communicated) of third party payors such as Medicare, Medicaid, Blue
      Cross/Blue Shield, private insurance companies, health maintenance
      organizations, preferred provider organizations, alternative delivery systems,
      managed care systems, government contacting agencies and other third party
      payors. In particular, accounts receivable relating to third party payors do
      not
      and shall not exceed amounts any obligee is entered to receive under any
      capitation arrangement, fee schedule, discount formula, cost-based reimbursement
      or other adjustment or limitation to its usual charges.

    

    
      
        
          
          

        

        
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              Section
                3.28

            	
              Other
                Agreements.

            

    

    

    No
      Credit
      Party is in default in the performance, observance or fulfillment of any of
      the
      obligations, covenants or conditions contained in (a)
      any
      Medicaid Provider Agreement, Medicare Provider Agreement or other agreement
      or
      instrument to which such Person is a party, which default has resulted in,
      or if
      not remedied within any applicable grace period could result in, the revocation,
      termination, cancellation or material suspension of Medicaid Certification
      or
      Medicare Certification of any such Person or (b)
      any
      other agreement or instrument to which any such Person is a party, which
      default, individually or in the aggregate, has, or if not remedied within any
      applicable grace period could reasonably be expected to have, a Material Adverse
      Effect.

    

    
      	 	
              Section
                3.29

            	
              Material
                Contracts.

            

    

    

    Schedule
      3.29
      sets
      forth a true and correct and complete list of all Material Contracts currently
      in effect. All of the Material Contracts are in full force and effect and no
      material defaults exist thereunder.

    

    
      	 	
              Section
                3.30

            	
              Insurance.

            

    

    

    The
      insurance coverage of the
      Credit
      Parties and, with respect to the general insurance coverage of the Company
      and
      its Subsidiaries, the Foreign Subsidiaries is
      outlined as to carrier, policy number, expiration date, type and amount on
      Schedule
      3.30
      and such
      insurance coverage complies with the requirements set forth in Section
      5.5(b).

    

    
      	 	
              Section
                3.31

            	
              Classification
                as Senior Indebtedness.

            

    

    

    The
      Credit Party Obligations constitute “Senior Indebtedness” under and as may be
      defined in any agreement governing any outstanding Subordinated Indebtedness
      and
      the subordination provisions set forth in each such agreement are legally valid
      and enforceable against the parties thereto.

    

    
      	 	
              Section
                3.32

            	
              Tax
                Shelter Regulations. 

            

    

    

    The
      Borrower does not intend to treat the Loans 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 the Borrower determines to take any action
      inconsistent with such intention, it will promptly notify the Administrative
      Agent thereof. If the Borrower so notifies the Administrative 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.

    

    
      
        
          
          

        

        
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              Section
                3.33

            	
              Regulation
                H.

            

    

    

    No
      Mortgaged Property is a Flood Hazard Property.

    

    
      	 	
              Section
                3.34

            	
              Anti-Terrorism
                Laws.

            

    

    

    Neither
      any Credit Party nor any of its Subsidiaries is an “enemy” or an “ally of the
      enemy” within the meaning of Section 2 of the Trading with the Enemy Act of the
      United States of America (50 U.S.C. App. §§ 1 et
      seq.),
      as
      amended. Neither any Credit Party nor any or its Subsidiaries is in violation
      of
      (a) the Trading with the Enemy Act, as amended, (b) any of the foreign assets
      control regulations of the United States Treasury Department (31 CFR, Subtitle
      B, Chapter V, as amended) or any enabling legislation or executive order
      relating thereto or (c) the Patriot Act. None of the Credit Parties (i) is
      a
      blocked person described in Section 1 of the Executive Order Number 13224
      (Anti-Terrorism Order) or (ii) to the knowledge of any Responsible Officer,
      engages in any dealings or transactions, or is otherwise associated, with any
      such blocked person.

    

    
      	 	
              Section
                3.35

            	
              Compliance
                with OFAC Rules and Regulations.

            

    

    

    None
      of
      the Credit Parties or their Subsidiaries or, to the knowledge of any Responsible
      Officer, their respective Affiliates (a) is a Sanctioned Person,
      (b) has more than 15% of its assets in Sanctioned Countries, or
      (c) derives more than 15% of its operating income from investments in, or
      transactions with Sanctioned Persons or Sanctioned Countries. No part of the
      proceeds of any Extension of Credit hereunder will be used directly or
      indirectly to fund any operations in, finance any investments or activities
      in
      or make any payments to, a Sanctioned Person or a Sanctioned
      Country.

    

    
      	 	
              Section
                3.36

            	
              Compliance
                with FCPA.

            

    

    

    Each
      of
      the Credit Parties and their Subsidiaries is in compliance with the Foreign
      Corrupt Practices Act, 15 U.S.C. §§ 78dd-1, et
      seq.,
      and, to
      the knowledge of any Responsible Officer, any foreign counterpart thereto.
      None
      of the Credit Parties or their Subsidiaries has made a payment, offering, or
      promise to pay, or authorized the payment of, money or anything of value
      (a) in order to assist in obtaining or retaining business for or with, or
      directing business to, any foreign official, foreign political party, party
      official or candidate for foreign political office, (b) to a foreign
      official, foreign political party or party official or any candidate for foreign
      political office, and (c) with the intent to induce the recipient to misuse
      his or her official position to direct business wrongfully to such Credit Party
      or its Subsidiary or to any other Person, in violation of the Foreign Corrupt
      Practices Act, 15 U.S.C. §§ 78dd-1, et
      seq. 

    

    
      
        
          
          

        

        
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    ARTICLE
      IV

    

    CONDITIONS
      PRECEDENT

    

    
      	 	
              Section
                4.1

            	
              Conditions
                to Closing Date and Initial Extensions of Credit.

            

    

    

    This
      Agreement shall become effective upon, and the obligation of each Lender to
      make
      the initial Revolving Loans and the Term Loans on the Closing Date is subject
      to, the satisfaction of the following conditions precedent:

    

    (a)    Execution
      of Agreements.
      The
      Administrative Agent shall have received (i)
      counterparts of this Agreement from each party hereto, (ii)
      for the
      account of each applicable Lender, a Revolving Note and a Term Note from the
      Borrower, (iii)
      for the
      account of each Swingline Lender, the Swingline Note from the Borrower,
      (iv)
      counterparts of the Security Agreement, and the Pledge Agreement, each Mortgage
      Instrument and the other Security Documents from each Credit Party party thereto
      and (v)
      executed consents, in the form of Schedule
      4.1-3
      from
      each Lender authorizing the Administrative Agent to enter this Credit Agreement
      on their behalf, in each case conforming to the requirements of this Agreement
      and executed by a duly authorized officer of each party thereto, and in each
      case in form and substance reasonably satisfactory to the Administrative Agent.
      

    

    (b)    Authority
      Documents.
      The
      Administrative Agent shall have received the following:

    

    (i)    
Articles
      of Incorporation/Organizational Documents.
      Copies
      of the articles of incorporation, certificate of incorporation or other
      organizational documents, as applicable, of each Credit Party, certified (other
      than with respect to the Company, Colgate, Victory, Swiftsure and UK Ltd) to
      be
      true and complete as of a recent date by the appropriate Governmental Authority
      of the jurisdiction of its incorporation or organization, as the case may
      be.

    

    (ii)    Resolutions.
      Copies
      of resolutions of the board of directors (or comparable group and, where
      applicable, the shareholders or members) of each Credit Party approving and
      adopting the Credit Documents, the transactions contemplated therein and
      authorizing execution and delivery thereof, certified by a secretary or
      assistant secretary of such Credit Party (pursuant to a secretary’s certificate
      in substantially the form of Schedule
      4.1-1
      attached
      hereto) as of the Closing Date to be true and correct and in force and effect
      as
      of such date.

    

    (iii)   Bylaws/Operating
      Agreement.
      A copy
      of the bylaws, memorandum and articles of association, limited liability company
      agreement or comparable operating agreement of each Credit Party (other than
      the
      Company) certified by a secretary or assistant secretary of such Credit Party
      (pursuant to a secretary’s certificate in substantially the form of Schedule
      4.1-1
      attached
      hereto) as of the Closing Date to be true and correct and in force and effect
      as
      of such date.

    

    
      
        
          
          

        

        
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    (iv)   Good
      Standing.
      Copies
      of certificates of good standing, existence or its equivalent (to the extent
      applicable) with respect to the each Credit Party certified as of a recent
      date
      by the appropriate Governmental Authorities of the jurisdiction of incorporation
      or organization and each other jurisdiction in which the failure to so qualify
      and be in good standing could reasonably be expected to have a Material Adverse
      Effect on the business or operations of such Credit Party in such
      state.

    

    (v)    Incumbency.
      An
      incumbency certificate of Responsible Officers of each Credit Party authorized
      to execute the Credit Documents on such Credit Party’s behalf certified by a
      secretary or assistant secretary (pursuant to a secretary’s certificate in
      substantially the form of Schedule
      4.1-1
      attached
      hereto) to be true and correct as of the Closing Date.

    

    (c)    Legal
      Opinions of Counsel.
       The
      Administrative Agent shall have received (i)
      opinions of legal counsel (including local counsel to the extent required by
      the
      Administrative Agent) for the Credit Parties, dated the Closing Date and
      addressed to the Administrative Agent and the Lenders, which opinions shall
      include, without limitation, a “no conflicts” opinion with respect to corporate
      instruments and Material Contracts of the Credit Parties on the Closing Date
      after giving effect to the transactions contemplated herein, (ii)
      an
      opinion from STvB Advocaten (Caracao) N.V. as to, inter alia, the due
      authorization, execution and delivery of the Credit Documents to which the
      Company is a party, and (iii)
      an
      opinion from Berwin Leighton Paisner LLP as to, inter alia, enforceability
      of
      the UK Security Documents and the due authorization, execution and delivery
      of
      the Credit Documents to which Colgate, Victory, Swiftsure or UK Ltd is a party,
      such opinions to be in form and substance reasonably satisfactory to the
      Administrative Agent.

    

    (d)    Reliance.
      The
      Administrative Agent shall have received a copy of each opinion, agreement,
      and
      other material document required to be delivered pursuant to the Acquisition
      Documents and the transactions contemplated in connection therewith, together
      with evidence that the Administrative Agent and the Lenders have been authorized
      to rely on each such opinion to the extent counsel providing each such opinion
      has agreed to such reliance, all in form and substance reasonably satisfactory
      to the Administrative Agent.

    

    (e)    Personal
      Property Collateral.
      The
      Administrative Agent shall have received, in form and substance reasonably
      satisfactory to the Administrative Agent:

    

    (i)    
a
      perfection certificate setting forth the state or jurisdiction of incorporation
      or organization of each Credit Party and each jurisdiction where any Collateral
      of such Credit Party with a fair market value in excess of $100,000 is located
      or where the chief executive office of such Credit Party is located, copies
      of
      Lien searches in jurisdictions as required by the Administrative Agent, and
      copies of the financing statements on file in such jurisdictions and evidence
      that no Liens exist other than Permitted Liens;

    

    
      
        
          
          

        

        
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    (ii)    UCC
      financing statements for each appropriate jurisdiction as is necessary, in
      the
      Administrative Agent’s reasonable discretion, to perfect the Administrative
      Agent’s security interest in the Collateral; and

    

    (iii)   duly
      executed consents as are necessary, in the Administrative Agent’s sole
      discretion, to perfect the Lenders’ security interest in the Collateral.

    

    (f)    
[Reserved]

    

    (g)    Liability,
      Casualty and Business Interruption Insurance.
      The
      Administrative Agent shall have received copies of insurance policies (including
      a Marsh Inc. report) or certificates of insurance evidencing liability and
      casualty insurance meeting the requirements set forth herein or in the Security
      Documents and business interruption insurance satisfactory to the Administrative
      Agent. The Administrative Agent shall be named as loss payee or mortgagee,
      as
      its interest may appear, and/or additional insured with respect to any such
      insurance providing coverage in respect of any Collateral, and the respective
      Credit Party shall use commercially reasonable efforts to obtain from each
      provider of any such insurance an agreement that such provider, by endorsement
      upon the policy or policies issued by it or by independent instruments furnished
      to the Administrative Agent, will give the Administrative Agent thirty (30)
      days
      prior written notice before any such policy or policies shall be altered or
      canceled. 

    

    (h)    Fees.
      The
      Administrative Agent and the Lenders shall have received (i) all
      fees, if any, owing pursuant to the Fee Letters and Section 2.5 and
      (ii)
      evidence that the aggregate amount of fees and expenses payable in connection
      with the consummation of the Acquisition by the Company and its Subsidiaries
      (excluding those fees identified in the foregoing subsection (i)) did not exceed
      $12,500,000.

    

    (i)    
Litigation.
      Except
      as set forth on Schedule
      3.8,
      there
      shall not exist any material litigation, investigation, claim, criminal
      prosecution, civil investigative demand, imposition of criminal or civil fines
      and penalties, or any other proceeding of or before any arbitrator or
      Governmental Authority (including but not limited to those regulatory agencies
      responsible for licensing, accrediting or issuing Medicare or Medicaid
      certifications) affecting or relating to any of the Company or its Subsidiaries,
      this Agreement and the other Credit Documents, that has not been settled,
      dismissed, vacated, discharged or terminated prior to the Closing
      Date.

    

    (j)    
Solvency
      Certificate.
      The
      Administrative Agent shall have received an officer’s certificate prepared by
      the chief financial officer of the Company as to the financial condition,
      solvency and related matters of each Credit Party, in each case after giving
      effect to the Acquisition and the initial borrowings under the Credit Documents,
      in substantially the form of Schedule
      4.1-2
      hereto.

    

    
      
        
          
          

        

        
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    (k)    Account
      Designation Letter.
      The
      Administrative Agent shall have received the executed Account Designation Letter
      in the form of Schedule
      1.1-1
      hereto.

    

    (l)    
Corporate
      Structure.
      The
      corporate, capital and ownership structure of the Company and its Subsidiaries
      after giving effect to the Acquisition shall be as described in Schedule
      3.12,
      and
      shall otherwise be reasonably satisfactory to the Administrative Agent. The
      Administrative Agent shall be satisfied with the management of the Company
      and
      its Subsidiaries after giving effect to the Acquisition.

    

    (m)   Acquisition
      Documents.
      The
      Administrative Agent shall have reviewed and approved to its reasonable
      satisfaction all of the Acquisition Documents
      (other than the Agreement and Plan of Merger referred to in the definition
      of
“Acquisition Documents” and all related schedules and exhibits, which have been
      approved) and there shall not have been any material modification, amendment,
      supplement or waiver to the Acquisition
      Documents
      subsequent to August 4, 2006 without the prior written consent of the
      Administrative Agent. The Acquisition shall
      have been consummated substantially in accordance with the terms of the
Acquisition
      Documents
      (without waiver of any material conditions precedent to the obligations of
      any
      party thereto without the consent of the Administrative Agent). The
      Administrative Agent shall have received a copy, certified by an officer of
      the
      Borrower as true and complete, of each Acquisition Document
      as originally executed and delivered, together with all exhibits and schedules
      thereto.

    

    (n)    Consents.
      The
      Administrative Agent shall have received evidence that all governmental,
      shareholder, board of director and material third party consents and approvals
      that the Borrower can obtain using its commercially reasonable efforts and
      that
      are necessary in connection with the financings, the Acquisition and other
      transactions contemplated hereby have been obtained and all applicable waiting
      periods have expired without any action being taken by any authority that could
      restrain, prevent or impose any material adverse conditions on such transactions
      or that could seek or threaten any of such transactions.

    

    (o)    Compliance
      with Laws.
      The
      financings and other transactions contemplated hereby shall be in compliance
      with all applicable Requirements of Law (including all applicable securities
      and
      banking laws, rules and regulations).

    

    (p)    Bankruptcy.
      There
      shall be no bankruptcy or insolvency proceedings with respect to any Credit
      Party or any of its Subsidiaries.

    

    (q)    Material
      Adverse Effect.
      No
      material adverse change shall have occurred or could reasonably be expected
      to
      occur since December 31, 2005 in the business, properties, prospects,
      operations, regulatory environment or condition (financial or otherwise) of
      either the Company, the Borrower and its Subsidiaries, taken as a whole or
      the
      Acquired Company and its Subsidiaries, taken as a whole. 

    

    
      
        
          
          

        

        
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    (r)    
Minimum
      Consolidated EBITDA.
      The
      Administrative Agent shall have received evidence satisfactory thereto provided
      by the Company that the Consolidated EBITDA for the twelve-month period ending
      on the last day of the most recent fiscal quarter for which financial statements
      of the Company and its Subsidiaries are available, calculated on a Pro Forma
      Basis, is no less than $79,000,000.

    

    (s)    Leverage
      Ratio.
      The
      Leverage Ratio (determined using Funded Debt of the Company and its Subsidiaries
      as of the Closing Date and pro forma Consolidated EBITDA of the Company and
      its
      Subsidiaries for the twelve-month period ending
      on
      the last day
      of the
      most recent fiscal quarter for which financial statements of the Company and
      its
      Subsidiaries are available), calculated on a Pro Forma Basis as of the Closing
      Date, shall not exceed 4.25 to 1.0.

    

    (t)
    Financial
      Statements.
      The
      Administrative Agent shall have received copies of the financial statements
      and
      projections referred to in Section 3.1 hereof, each in form and substance
      satisfactory to it.

    

    (u)    Termination
      of Existing Indebtedness; Approval of Intercompany Indebtedness.
      All
      existing Indebtedness for borrowed money of the Company, the Borrower, the
      Acquired Company and their respective Subsidiaries in excess of $5,000,000
      in
      the aggregate, other than Indebtedness incurred by SRL as set forth on
Schedule
      6.1(b),
      shall
      have been repaid in full and terminated and all Liens relating thereto shall
      have been terminated. The Administrative Agent shall have reviewed and approved
      in its sole discretion all loan documentation with respect to any intercompany
      Indebtedness of the Credit Parties and the Administrative Agent shall have
      received a copy, certified by a Responsible Officer of the Borrower as true
      and
      complete, of each such document, as originally executed and delivered, together
      with all exhibits, schedules, amendments and modifications thereto.

    

    (v)    Officer’s
      Certificates.
      The
      Administrative Agent shall have received a certificate executed by a Responsible
      Officer of the Borrower as of the Closing Date stating that (i) immediately
      after giving effect to this Credit Agreement (including the initial Extensions
      of Credit hereunder), the other Credit Documents and the Acquisition Documents
      and all the transactions contemplated therein to occur on such date, (A) no
      Default or Event of Default exists, (B) all representations and warranties
      contained herein and in the other Credit Documents are true and correct in
      all
      material respects, and (C) the Credit Parties are in compliance with each of
      the
      financial covenants set forth in Section 5.9 and demonstrating compliance with
      such financial covenants. 

    

    (w)   Credit
      Rating.
      The
      Borrower shall have obtained a senior secured credit rating from Moody’s and
      from S&P.

    

    (x)    
Patriot
      Act Certificate.
      The
      Administrative Agent shall have received a certificate satisfactory thereto,
      for
      benefit of itself and the Lenders, provided by the Borrower that sets forth
      information required by the Patriot Act (as defined in Section 9.18) including,
      without limitation, the identity of each Credit Party, the name and address
      of
      each Credit Party and other information that will allow the Administrative
      Agent
      or any Lender, as applicable, to identify each Credit Party in accordance with
      the Patriot Act. 

    

    
      
        
          
          

        

        
          79

          
            

          

        

        
          
          

        

      

    

    

    (y)    Additional
      Matters.
      All
      other documents and legal matters in connection with the transactions
      contemplated by this Agreement shall be reasonably satisfactory in form and
      substance to the Administrative Agent and its counsel.

    

    
      	 	
              Section
                4.2

            	
              Conditions
                to All Extensions of Credit.

            

    

    

    The
      obligation of each Lender to make any Extension of Credit hereunder is subject
      to the satisfaction of the following conditions precedent on the date of making
      such Extension of Credit:

    

    (a)    Representations
      and Warranties.
      The
      representations and warranties made by the Credit Parties herein, in the
      Security Documents or which are contained in any certificate furnished at any
      time under or in connection herewith shall be true and correct on and as of
      the
      date of such Extension of Credit as if made on and as of such date (other than
      any such representations or warranties that, by their terms, refer to a specific
      date other than the date of such Extension of Credit, in which case, as of
      such
      specific date). 

    

    (b)    No
      Default or Event of Default.
      No
      Default or Event of Default shall have occurred and be continuing on such date
      or after giving effect to the Extension of Credit to be made on such date unless
      such Default or Event of Default shall have been waived in accordance with
      this
      Agreement.

    

    (c)    Compliance
      with Commitments.
      Immediately after giving effect to the making of any such Extension of Credit
      (and the application of the proceeds thereof), (i) the sum of outstanding
      Revolving Loans plus
      outstanding Swingline Loans plus
      outstanding LOC Obligations shall not exceed the Revolving Committed Amount,
      (ii) the outstanding LOC Obligations shall not exceed the LOC Committed Amount
      and (iii) the Swingline Loans shall not exceed the Swingline Committed
      Amount.

    

    (d)    Additional
      Conditions to Extensions of Credit.
      If such
      Extension of Credit is made pursuant to Sections 2.1, 2.2, 2.3 or 2.4, all
      conditions set forth in such Section shall have been satisfied.

    

    Each
      request for an Extension of Credit and each acceptance by the Borrower of any
      such Extension of Credit shall be deemed to constitute a representation and
      warranty by the Borrower as of the date of such Extension of Credit that the
      applicable conditions in paragraphs (a) through (d) of this Section have been
      satisfied.

    

    
      
        
          
          

        

        
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    ARTICLE
      V

    

    AFFIRMATIVE
      COVENANTS

    

    The
      Credit Parties hereby covenant and agree that on the Closing Date, and
      thereafter for so long as this Agreement is in effect and until the Commitments
      have terminated, no Note shall remain outstanding and unpaid and the Credit
      Party Obligations, together with interest, Commitment Fees and all other amounts
      owing to the Administrative Agent or any Lender hereunder, shall have been
      paid
      in full, the Credit Parties shall: 

    

    
      	 	
              Section
                5.1

            	
              Financial
                Statements.

            

    

    

    Furnish
      to the Administrative Agent (which shall transmit or make available the same
      to
      the Lenders as soon as practicable):

    

    (a)    Annual
      Financial Statements.
      As soon
      as available, but in any event within ninety (90) days after the end of
      each fiscal year of the Company commencing with the fiscal year ended December
      31, 2006 (or, with respect to the comparative information required below,
      commencing with the fiscal year ended December 31, 2006), a copy of the
      consolidated and consolidating balance sheet of the Company and its consolidated
      Subsidiaries as at the end of such fiscal year and the related consolidated
      and
      consolidating statements of income and retained earnings and of cash flows
      of
      the Company and its consolidated Subsidiaries for such year, audited (with
      respect to the consolidated statements only) by a firm of independent certified
      public accountants of, as appropriate, nationally or internationally recognized
      standing reasonably acceptable to the Administrative Agent, setting forth in
      comparative form consolidated and consolidating figures
      for the preceding fiscal year, reported on without a “going concern” or like
      qualification or exception, or qualification indicating that the scope of the
      audit was inadequate to permit such independent certified public accountants
      to
      certify such financial statements without such qualification;

    

    (b)    Annual
      Unaudited Financial Statements.
      As soon
      as available, but in any event within ninety (90) days after the end of
      each fiscal year of the Company commencing with the fiscal year ended December
      31, 2006 (or, with respect to the comparative information required below,
      commencing with the fiscal year ended December 31, 2006), a copy of the
      consolidated and consolidating balance sheet of the Borrower and its
      consolidated Subsidiaries as at the end of such fiscal year and the related
      consolidated and consolidating statements of income and retained earnings and
      of
      cash flows of the Borrower and its consolidated Subsidiaries for such year,
      setting forth in comparative form consolidated and consolidating figures
      for the preceding fiscal year.

    

    
      
        
          
          

        

        
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    (c)    Quarterly
      Financial Statements.
      (i) As
      soon as available and in any event within (A) forty-five (45) days after the
      end
      of each of the first three fiscal quarters of the Company and (B) ninety (90)
      days after the end of the fourth fiscal quarter of the Company, a
      company-prepared consolidated and consolidating balance sheet of the Borrower
      and its consolidated Subsidiaries as at the end of such period and related
      company-prepared consolidated and consolidating statements
      of income and retained earnings and of cash flows for the Borrower and its
      consolidated Subsidiaries for such quarterly period and for the portion of
      the
      fiscal year ending with such period, in each case setting forth in comparative
      form consolidated and consolidating figures
      for the corresponding period or periods of the preceding fiscal year (subject
      to
      normal recurring year-end audit adjustments) and (ii) as soon as available
      and
      in any event within (A) forty-five (45) days after the end of each of the first
      three fiscal quarters of the Company and (B) ninety (90) days after the end
      of
      the fourth fiscal quarter of the Company, a company-prepared consolidated and
      consolidating balance sheet of the Company and its consolidated Subsidiaries
      as
      at the end of such period and related company-prepared consolidated and
      consolidating statements
      of income and retained earnings and of cash flows for the Company and its
      consolidated Subsidiaries for such quarterly period and for the portion of
      the
      fiscal year ending with such period, in each case setting forth in comparative
      form consolidated and consolidating figures
      for the corresponding period or periods of the preceding fiscal year (subject
      to
      normal recurring year-end audit adjustments) and to the extent not disclosed
      in
      the Company’s Form 10-Q, management discussion and analysis of operating results
      inclusive of operating metrics in comparative form; and

    

    (d)    Annual
      Budget Plan.
      As soon
      as available, but in any event within sixty (60) days after the end of each
      fiscal year, a copy of the detailed annual budget or plan of the Company for
      the
      next fiscal year on a quarterly basis, in form and detail reasonably acceptable
      to the Administrative Agent, together with a summary of the material assumptions
      made in the preparation of such annual budget or plan;

    

    all
      such
      financial statements to be complete and correct in all material respects
      (subject, in the case of interim statements, to normal recurring year-end audit
      adjustments) and to be prepared in reasonable detail and, in the case of the
      annual and quarterly financial statements provided in accordance with
      subsections (a), (b) and (c) above, in accordance with GAAP applied consistently
      throughout the periods reflected therein and further accompanied by a
      description of, and an estimation of the effect on the financial statements
      on
      account of a change, if any, in the application of accounting principles as
      provided in Section 1.3.

    

    
      	 	
              Section
                5.2

            	
              Certificates;
                Other Information.

            

    

    

    Furnish
      to the Administrative Agent (which shall transmit or make available the same
      to
      the Lenders as soon as practicable):

    

    (a)    concurrently
      with the delivery of the financial statements referred to in Section 5.1(a)
      above, certificates of the independent certified public accountants of the
      Company reporting on such financial statements stating that in making the
      examination necessary therefore no knowledge was obtained of any Default or
      Event of Default under Section 5.9, except as specified in such
      certificate;

    

    
      
        
          
          

        

        
          82

          
            

          

        

        
          
          

        

      

    

    

    (b)    concurrently
      with the delivery of the financial statements referred to in Sections 5.1(a),
      5.1(b) and 5.1(c) above, a certificate of a Responsible Officer of the Borrower
      stating that, to the best of such Responsible Officer’s knowledge, during such
      period each of the Credit Parties observed or performed all of its covenants
      and
      other agreements, and satisfied every condition, contained in this Agreement
      to
      be observed, performed or satisfied by it, and that such Responsible Officer
      has
      obtained no knowledge of any Default or Event of Default except as specified
      in
      such certificate and such certificate shall include the calculations in
      reasonable detail required to indicate compliance with Section 5.9 as of the
      last day of such period;

    

    (c)    within
      ten (10) days after the same are sent, copies of all reports (other than those
      otherwise provided pursuant to Section 5.1 and those which are of a promotional
      nature) and other financial information which the Company sends to its members
      and equity holders, and within ten (10) days after the same are filed, copies
      of
      all financial statements and non-confidential reports which the Company may
      make
      to or file with the Securities and Exchange Commission or any successor or
      analogous Governmental Authority;

    

    (d)    within
      ninety (90) days after the end of each fiscal year of the Company, a certificate
      containing information regarding the amount of all Asset Dispositions, Debt
      Issuances, and Equity Issuances that were made during the prior fiscal year
      and
      amounts received in connection with any Recovery Event during the prior fiscal
      year;

    

    (e)    promptly
      upon receipt thereof, a copy of any other report or “management letter”
submitted or presented by independent accountants to any Credit Party
or
      any of
      the Borrower’s Subsidiaries
      in
      connection with any annual, interim or special audit of the books of such Person
      regarding material matters of the Company and its Subsidiaries, taken as a
      whole; 

    

    (f)    
promptly,
      copies of all material notices from or material requests to the FDA, FTC, and
      OSHA (each, as defined in Section 3.26); and

    

    (g)    promptly,
      such additional financial and other information as the Administrative Agent,
      on
      behalf of any Lender, may from time to time reasonably request.

    

    
      	 	
              Section
                5.3

            	
              Payment
                of Obligations.

            

    

    

    Pay,
      discharge or otherwise satisfy at or before maturity or before they become
      delinquent, as the case may be, all its taxes (Federal, state, local and any
      other taxes) and all its other obligations and liabilities of whatever nature
      and any additional costs that are imposed as a result of any failure to so
      pay,
      discharge or otherwise satisfy such obligations and liabilities, except
      (a) when the amount or validity of such obligations, liabilities and costs
      is currently being contested in good faith by appropriate proceedings and
      reserves, if applicable, in conformity with GAAP with respect thereto have
      been
      provided on the books of any Credit Party, as the case may be or (b) where
      any such failure to pay, discharge or satisfy could not reasonably be expected
      to have a Material Adverse Effect.

    

    
      
        
          
          

        

        
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              Section
                5.4

            	
              Conduct
                of Business and Maintenance of Existence.

            

    

    

    Continue
      to (a) engage in business of the same general type as now conducted by it on
      the
      Closing Date and preserve, renew and keep in full force and effect its corporate
      existence and take all reasonable action to maintain all rights, privileges
      and
      franchises necessary or that the applicable Credit Party reasonably deems
      desirable in the normal conduct of its business; provided
      that any
      Credit Party or any Subsidiary thereof may reorganize in Delaware or in another
      U.S. jurisdiction acceptable to the Required Lenders so long as the
      Administrative Agent receives prior written notice thereof and all actions
      required to continue the perfection of the Administrative Agent’s Liens on the
      Collateral are taken; and provided,
      further,
      the
      Company may consummate the Acquisition and any other merger, consolidation,
      purchase, lease or acquisition permitted under Section 6.4 or liquidate or
      dissolve any Subsidiary that has no assets or that has sold, disposed of or
      otherwise transferred all of its assets to the Borrower or a Subsidiary
      Guarantor, and (b) comply with all Contractual Obligations and Requirements
      of
      Law applicable to it except to the extent that failure to comply therewith,
      individually or in the aggregate, could not reasonably be expected to have
      a
      Material Adverse Effect.

    

    
      	 	
              Section
                5.5

            	
              Maintenance
                of Property; Insurance.

            

    

    

    (a)    Keep
      all
      Material Property useful and necessary in its business in good working order
      and
      condition (ordinary wear and tear, damage by casualty and obsolescence
      excepted); 

    

    (b)    Maintain
      with financially sound and reputable insurance companies insurance on all its
      Material Property (including without limitation its material tangible
      Collateral) in at least such amounts (or such greater amounts to the extent
      any
      coverage amount maintained by the Credit Parties is significantly lower than
      the
      coverage amount maintained by companies engaged in the same or a similar
      business in the same general area) and against at least such risks as are
      maintained by the Credit Parties as of the Closing Date and any other material
      risks as are usually insured against in the same general area by companies
      engaged in the same or a similar business; and furnish to the Administrative
      Agent, upon written request, full information as to the insurance carried.
      The
      Administrative Agent shall be named as loss payee or mortgagee, as its interest
      may appear, (or additional insured in the case of liability coverage) with
      respect to any such insurance providing coverage in respect of any Collateral,
      and each provider of any such insurance shall agree, by endorsement upon the
      policy or policies issued by it or by independent instruments furnished to
      the
      Administrative Agent, that it will give the Administrative Agent thirty (30)
      days prior written notice before any such policy or policies shall be altered
      or
      canceled, and that no act or default of any Credit Party or any Subsidiary
      of
      the Company or any other Person shall affect the rights of the Administrative
      Agent or the Lenders under such policy or policies;
      and

    

    (c)    In
      case
      of any material loss, damage to or destruction of the Collateral of any Credit
      Party or any part thereof, such Credit Party shall promptly give written notice
      thereof to the Administrative Agent generally describing the nature and extent
      of such damage or destruction. In case of any material loss, damage to or
      destruction of the Collateral of any Credit Party or any part thereof, such
      Credit Party, whether or not the insurance proceeds, if any, received on account
      of such damage or destruction shall be sufficient for that purpose, at such
      Credit Party’s cost and expense, will promptly repair or replace the Collateral
      of such Credit Party so lost, damaged or destroyed.

    

    
      
        
          
          

        

        
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              Section
                5.6

            	
              Inspection
                of Property; Books and Records; Discussions.

            

    

    

    Keep
      proper books and records of account in which full, true and correct entries
      in
      conformity with GAAP and all Requirements of Law shall be made of all dealings
      and transactions in relation to its businesses and activities; and permit,
      during regular business hours and upon reasonable notice by the Administrative
      Agent or any Lender, the Administrative Agent or any Lender to visit and inspect
      any of its properties and examine and make abstracts from any of its books
      and
      records (other than materials protected by the attorney-client privilege and
      materials which any Credit Party may not disclose without violation of a
      confidentiality obligation binding upon it) once a fiscal quarter or upon the
      occurrence and during the continuance of a Default or an Event of Default,
      and
      to discuss the business, operations, properties and financial and other
      condition of the Credit Parties and their Subsidiaries with officers and
      employees of the Credit Parties and their Subsidiaries and with its independent
      certified public accountants. The forgoing, with respect to the Lenders, shall
      be at such Lender’s expense and, with respect to the Administrative Agent, shall
      be at the Borrower’s expense. 

    

    
      	 	
              Section
                5.7

            	
              Notices.

            

    

    

    Give
      notice in writing to the Administrative Agent (which shall promptly transmit
      such notice to each Lender) of:

    

    (a)    promptly,
      but in any event within two (2) Business Days after any Responsible Officer
      of a
      Credit Party knows thereof, the occurrence of any Default or Event of
      Default;

    

    (b)    promptly,
      any default or event of default under any Contractual Obligation of any Credit
      Party or any of its Subsidiaries which, individually or in the aggregate, could
      reasonably be expected to have a Material Adverse Effect or could reasonably
      be
      expected to result in a monetary payment in excess of $10,000,000;

    

    (c)    promptly,
      any litigation, or any investigation or proceeding known to any Credit Party
      (i)
      affecting any Credit Party or any of its Subsidiaries which, if adversely
      determined, individually or in the aggregate, could reasonably be expected
      to
      have a Material Adverse Effect or could reasonably be expected to result in
      a
      monetary judgment in excess of $5,000,000 or (ii) affecting or with respect
      to this Agreement or any other Credit Document;

    

    
      
        
          
          

        

        
          85

          
            

          

        

        
          
          

        

      

    

    

    (d)    as
      soon
      as possible and in any event within thirty (30) days after any Responsible
      Officer of a Credit Party knows or has reason to know thereof: (i) the
      occurrence of any material Reportable Event with respect to any Single Employer
      Plan, a failure to make any required contribution to a Single Employer Plan,
      the
      creation of any Lien in favor of a Single Employer Plan or in favor of the
      PBGC
      with respect to a Single Employer Plan (other than a Permitted Lien) or any
      withdrawal from, or the termination, Reorganization or Insolvency of, any
      Multiemployer Plan, which could reasonably be expected to result in any material
      liability for any Credit Party, or (ii) the institution of proceedings or the
      taking of any other action by the PBGC or any Credit Party or any Commonly
      Controlled Entity or any Multiemployer Plan with respect to the withdrawal
      from,
      or the terminating, Reorganization or Insolvency of, any Plan, which could
      reasonably be expected to result in any material liability for any Credit Party;
      

    

    (e)    promptly,
      of the institution of any investigation or proceeding against any Credit Party
      to suspend, revoke or terminate or which may result in the termination of any
      Medicaid Provider Agreement, Medicaid Certification, Medicare Provider
      Agreement, Medicare Certification or exclusion from any Medical Reimbursement
      Program;

    

    (f)    
promptly,
      after any Credit Party becomes involved in a pending civil or criminal
      investigation, criminal action or civil proposed debarment, exclusion or other
      sanctioning action related to any Federal or state healthcare program;

    

    (g)    promptly,
      any other development or event which, individually or in the aggregate, could
      reasonably be expected to have a Material Adverse Effect;

    

    (h)    promptly,
      any intention by the Borrower 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), a duly completed copy of IRS Form 8886
      or
      any successor form; and

    

    (i)
    promptly,
      the Company or any of its Subsidiaries (i) entering into a collective bargaining
      agreement or Multiemployer Plan covering the employees of the Company or any
      of
      its Subsidiaries, (ii) suffering any material strike, walkout, work stoppage
      or
      other material labor difficulty or (iii) becoming aware of any material unfair
      labor practice complaint against the Company or any of its Subsidiaries before
      any Governmental Authority.

    

    Each
      notice pursuant to this Section shall be accompanied by a statement of a
      Responsible Officer of the Borrower setting forth details of the occurrence
      referred to therein and stating what action the Borrower proposes to take with
      respect thereto. In the case of any notice of a Default or Event of Default,
      the
      Borrower shall specify that such notice is a Default or Event of Default notice
      on the face thereof.

    

    
      	 	
              Section
                5.8

            	
              Environmental
                Laws.

            

    

    

    (a)    Comply
      in
      all material respects with, and ensure compliance in all material respects
      by
      all tenants and subtenants, if any, with, all applicable Environmental Laws
      and
      obtain and comply in all material respects with and maintain, and ensure that
      all tenants and subtenants obtain and comply in all material respects with
      and
      maintain, any and all licenses, approvals, notifications, registrations or
      permits required by applicable Environmental Laws except to the extent that
      failure to do so, individually or in the aggregate, could not reasonably be
      expected to have a Material Adverse Effect;

    

    
      
        
          
          

        

        
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    (b)    Conduct
      and complete all investigations, studies, sampling and testing, and all
      remedial, removal and other actions required under Environmental Laws and
      promptly comply in all material respects with all lawful orders and directives
      of all Governmental Authorities regarding Environmental Laws except to the
      extent that the same are being contested in good faith by appropriate
      proceedings and the pendency of such proceedings could not reasonably be
      expected to have a Material Adverse Effect; and

    

    (c)    Defend,
      indemnify and hold harmless the Administrative Agent and the Lenders, and their
      respective employees, agents, officers and directors and affiliates, from and
      against any and all claims, demands, penalties, fines, liabilities, settlements,
      damages, costs and expenses of whatever kind or nature known or unknown,
      contingent or otherwise, arising out of, or in any way relating to the violation
      of, noncompliance with or liability under, any Environmental Law applicable
      to
      the operations of any Credit Party or any of the Company’s Subsidiaries or the
      Properties, or any orders, requirements or demands of Governmental Authorities
      related thereto, including, without limitation, reasonable attorney’s and
      consultant’s fees, investigation and laboratory fees, response costs, court
      costs and litigation expenses, except to the extent that any of the foregoing
      arise out of the gross negligence or willful misconduct of the Person seeking
      indemnification or any of its employees, agents, officers and directors and
      affiliates. The agreements in this paragraph shall survive repayment of the
      Notes and all other amounts payable hereunder.

    

    
      	 	
              Section
                5.9

            	
              Financial
                Covenants.

            

    

    

    Commencing
      on the day immediately following the Closing Date and for so long as this
      Agreement shall remain in effect, each of the Credit Parties shall, and shall
      cause each of its Subsidiaries to, comply with the following financial
      covenants:

    

    (a)    Leverage
      Ratio.
      The
      Leverage Ratio, as of the last day of each fiscal quarter of the Company
      occurring during the periods indicated below, shall be less than or equal to
      the
      following:

    

    
      	
              Period

            	
              Ratio

            
	
              Closing
                Date through June 30, 2007

            	
              4.25
                to 1.0

            
	
              July
                1, 2007 through December 31, 2007

            	
              4.00
                to 1.0

            
	
              January
                1, 2008 through June 30, 2008

            	
              3.75
                to 1.0

            
	
              July
                1, 2008 through December 31, 2008

            	
              3.50
                to 1.0

            
	
              January
                1, 2009 through June 30, 2009

            	
              3.25
                to 1.0

            
	
              July
                1, 2009 through December 31, 2009

            	
              3.00
                to 1.0 

            
	
              January
                1, 2010 through June 30, 2010

            	
              2.75
                to 1.0

            
	
              July
                1, 2010 and thereafter

            	
              2.50
                to 1.0

            

    

     

    
      
        
          
          

        

        
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    (b)    Fixed
      Charge Coverage Ratio.
      The
      Fixed Charge Coverage Ratio, as of the last day of each fiscal quarter of the
      Company occurring during the periods indicated below, shall be greater than
      or
      equal to the following:

    

    
      	
              Period

            	
              Ratio

            
	
              October
                1, 2006 through December 31, 2008

            	
              1.250
                to 1.0

            
	
              January
                1, 2009 through December 31, 2009

            	
              1.300
                to 1.0

            
	
              January
                1, 2010 and thereafter

            	
              1.375
                to 1.0

            

    

    

    Notwithstanding
      the above, the parties hereto acknowledge and agree that, for purposes of all
      calculations made in determining compliance for any applicable period with
      the
      financial covenants set forth in this Section, (i) after consummation of
      any Permitted Acquisition, (A) income statement items and other balance
      sheet items (whether positive or negative) attributable to the Target acquired
      in such transaction shall be included in such calculations to the extent
      relating to such applicable period, subject to adjustments mutually acceptable
      to the Borrower and the Administrative Agent, and (B) Indebtedness of a
      Target which is retired in connection with a Permitted Acquisition shall be
      excluded from such calculations and deemed to have been retired as of the first
      day of such applicable period and (ii) after any Asset Disposition
      permitted by Section 6.4(a)(ix),
      (A) income statement items, cash flow statement items and other balance
      sheet items (whether positive or negative) attributable to the property or
      assets disposed of shall be excluded in such calculations to the extent relating
      to such applicable period, subject to adjustments mutually acceptable to the
      Borrower and the Administrative Agent and (B) Indebtedness that is repaid
      with the proceeds of such Asset Disposition shall be excluded from such
      calculations and deemed to have been repaid as of the first day of such
      applicable period.

    

    
      	 	
              Section
                5.10

            	
              Additional
                Subsidiary Guarantors.

            

    

    

    The
      Company will cause each of its Domestic Subsidiaries, whether newly formed,
      after acquired or otherwise existing, to promptly become a Guarantor hereunder
      by way of execution of a Joinder Agreement. The guaranty obligations of any
      such
      Additional Credit Party shall be secured by, among other things, the property
      and assets of such Additional Credit Party and such Domestic Subsidiary shall
      execute and deliver to the Administrative Agent such Security Documents, legal
      opinions and related documents as the Administrative Agent may reasonably
      request with respect to such property and assets. 

    

    
      	 	
              Section
                5.11

            	
              Compliance
                with Law.

            

    

    

    The
      Credit Parties will, and will cause each of its Subsidiaries to, (a) comply
      with
      all expressly stated laws, rules, regulations, orders, restrictions and valid
      requirements imposed by all Governmental Authorities and regulatory authorities
      applicable to it, its property and assets and the conduct of its business if
      noncompliance with any such law, rule, regulation, order, restriction or
      requirement, including without limitation Titles XVIII and XIX of the Social
      Security Act, Medicare Regulations and Medicaid Regulations, individually or
      in
      the aggregate, could reasonably be expected to have a Material Adverse Effect,
      and (b)
      obtain and maintain all licenses, permits, certifications and approvals of
      all
      applicable Governmental Authorities as are required for the conduct of its
      business as currently conducted and herein contemplated, including without
      limitation professional licenses, appropriate Medicaid Certifications and
      Medicare Certifications, if failure to do so could reasonably be expected to
      have, individually or in the aggregate, a Material Adverse Effect. Specifically,
      but without limiting the foregoing, and except where any such failure to comply,
      individually or in the aggregate, could not reasonably be expected to have
      a
      Material Adverse Effect: (x) billing policies, arrangements, protocols and
      instructions will comply with reimbursement requirements under Medicare,
      Medicaid and other Medical Reimbursement Programs and will be administered
      by
      properly trained personnel; and (y) medical director compensation arrangements
      and other arrangements with referring physicians will comply with applicable
      state and federal self-referral and anti-kickback laws, including without
      limitation 42 U.S.C. Section 1320a-7b(b)(1) - (b)(2) and 42 U.S.C. Section
      1395nn.

    

    
      
        
          
          

        

        
          88

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              Section
                5.12

            	
              Pledged
                Assets. 

            

    

    

    (a)    The
      Company will, and will cause each of its Subsidiaries to, cause (i) 100% of
      the
      outstanding Capital Stock of each of Victory, the Borrower and the Subsidiary
      Guarantors and (ii) 65% (to the extent the pledge of a greater percentage would
      be unlawful or would cause any materially adverse tax consequences to the
      Borrower or any Guarantor) of the voting Capital Stock and 100% of the
      non-voting Capital Stock of each first-tier Foreign Subsidiary of the Borrower
      and the Subsidiary Guarantors, in each case to be subject at all times to a
      first priority, perfected Lien in favor of the Administrative Agent pursuant
      to
      the terms and conditions of the Security Documents or such other security
      documents as the Administrative Agent shall reasonably request.

    

    (b)    If,
      subsequent to the Closing Date, any Credit Party shall acquire any securities,
      instruments (except checks), chattel paper or other personal property required
      for perfection to be delivered to the Administrative Agent as Collateral
      hereunder or under any of the Security Documents, such Credit Party shall
      promptly (and in any event within three (3) Business Days) after such
      acquisition notify the Administrative Agent of same; provided
      that
      property the value of which, individually, is less than $500,000 and, in the
      aggregate, is less than $1,000,000 in any twelve-month period, shall not be
      required to be delivered until such time that all such property shall exceed
      $1,000,000 in the aggregate in any twelve-month period. Each of the Credit
      Parties shall take such action at its own expense as may be necessary or
      otherwise requested by the Administrative Agent (including, without limitation,
      any of the actions described in Sections 4.1(e) and 5.13(b) hereof) to ensure
      that the Administrative Agent has a first priority perfected Lien to secure
      the
      Credit Party Obligations in (i) all personal property Collateral of Colgate,
      Victory, the Borrower and Subsidiary Guarantors and all tangible personal
      property Collateral of the Company located in the United States and (ii) to
      the
      extent required by the Administrative Agent or the Required Lenders in its
      or
      their sole reasonable discretion, all real property owned by the Credit Parties
      located in the United States, subject in each case only to Permitted Liens.
      

    

    
      
        
          
          

        

        
          89

          
            

          

        

        
          
          

        

      

    

    

    (c)    If,
      subsequent to the Closing Date, a Credit Party leases a warehouse, plant or
      other real property material to such Person’s business and located within the
      United States, such Credit Party shall (i) promptly notify the Administrative
      Agent of such lease, (ii) to the extent required by the Administrative Agent
      and
      to the extent consented to by the relevant landlord or not prohibited under
      the
      lease, promptly deliver to the Administrative Agent such Mortgage Instruments,
      title reports, Mortgage Policies, Surveys, environmental site assessment
      reports, legal opinions and other documentation as the Administrative Agent
      may
      reasonably require and (iii) use its reasonable best efforts to deliver to
      the
      Administrative Agent such estoppel letters, consents and waivers from the
      landlord on such real property as may be required by the Administrative Agent;
      provided,
      that
      the Credit Party shall not be required to expend any significant amount of
      money
      to obtain such estoppel letters, consents and waivers.

    

    
      	 	
              Section
                5.13

            	
              Limitations
                on Colgate and Victory.

            

    

    

    Neither
      Colgate nor Victory shall have any Indebtedness or operations other than (a)
      its
      Guaranty, (b) intercompany Subordinated Indebtedness or Investments permitted
      hereunder, (c) operations as contemplated by the Tax Structure Documents, (d)
      operations relating to the holding of the Capital Stock of its Subsidiaries
      and
      (e) operations related to satisfying its obligations as a Credit
      Party.

    

    
      	 	
              Section
                5.14

            	
              Further
                Assurances;
                Post-Closing Covenant.

            

    

    

    (a)    Further
      Assurances.
      Upon
      the reasonable request of the Administrative Agent, promptly perform or cause
      to
      be performed any and all acts and execute or cause to be executed any and all
      documents for filing under the provisions of the Uniform Commercial Code or
      any
      other Requirement of Law which are necessary or advisable to maintain in favor
      of the Administrative Agent, for the benefit of the Secured Parties, Liens
      on
      the Collateral that are duly perfected in accordance with the requirements
      of,
      or the obligations of the Credit Parties under, the Credit Documents and all
      applicable Requirements of Law.

    

    (b)    Deposit
      Account Control Agreements.
      Within
      sixty (60) days after the Closing Date (or such extended period of time as
      agreed to by the Administrative Agent), the Administrative Agent shall have
      received, in form and substance reasonably satisfactory to the Administrative
      Agent, Deposit Account Control Agreements and Securities Account Control
      Agreements with respect to each account required to be subject to such agreement
      pursuant to Section 6.13.

    

    (c)    Notice
      of Grant of Security.
      Within
      fifteen (15) Business Days after the Closing Date (or such extended period
      of
      time as agreed to by the Administrative Agent), the Administrative Agent shall
      have received, in form and substance reasonably satisfactory to the
      Administrative Agent, (i)
      evidence that a notice of a grant of security was served upon Bank of America,
      N.A. with respect to each account of Colgate, Victory Swiftsure and UK Ltd
      located in the United Kingdom and (ii)
      an
      acknowledgement from Bank of America, N.A. as to the existence of such security,
      to the extent such acknowledgement can be obtained using commercially reasonable
      efforts.

    

    
      
        
          
          

        

        
          90

          
            

          

        

        
          
          

        

      

    

    

    (d)    Real
      Property Collateral.
      Within
      sixty (60) days after the Closing Date (or such extended period of time as
      agreed to by the Administrative Agent), the Administrative Agent shall have
      received, in form and substance reasonably satisfactory to the Administrative
      Agent:

    

    (i)    
fully
      executed and notarized Mortgage Instruments encumbering the owned or, to the
      extent not prohibited by the applicable lease or consented to by the applicable
      landlord, leasehold interest in the Mortgaged Properties owned or leased by
      each
      Credit Party and set forth on Schedule
      3.19(d);

    

    (ii)    a
      title
      report in respect of each of the Mortgaged Properties;

    

    (iii)   with
      respect to each Mortgaged Property, ALTA Mortgage Policies issued by the Title
      Insurance Company, assuring the Administrative Agent that each of the Mortgage
      Instruments creates a valid and enforceable first priority mortgage lien on
      the
      applicable Mortgaged Property, free and clear of all defects and encumbrances
      except Permitted Liens, which Mortgage Policies shall provide for affirmative
      insurance and such reinsurance as the Administrative Agent may reasonably
      request, all of the foregoing in form and substance reasonably satisfactory
      to
      the Administrative Agent;

    

    (iv)   evidence
      as to (A) whether any Mortgaged Property is in an area designated by the Federal
      Emergency Management Agency as having special flood or mud slide hazards (a
      “Flood
      Hazard Property”)
      and
      (B) if any Mortgaged Property is a Flood Hazard Property, (1) whether the
      community in which such Mortgaged Property is located is participating in the
      National Flood Insurance Program, (2) the Borrower’s or the applicable Credit
      Party’s written acknowledgment of receipt of written notification from the
      Administrative Agent (y) as to the fact that such Mortgaged Property is a Flood
      Hazard Property and (z) as to whether the community in which each such Flood
      Hazard Property is located is participating in the National Flood Insurance
      Program and (3) copies of insurance policies or certificates of insurance of
      the
      Borrower and its Subsidiaries evidencing flood insurance reasonably satisfactory
      to the Administrative Agent and naming the Administrative Agent as loss payee
      on
      behalf of the Lenders; 

    

    (v)    to
      the
      extent available, surveys of the sites of the Mortgaged Properties certified
      to
      the Administrative Agent and the Title Insurance Company in a manner reasonably
      satisfactory to them, dated a date satisfactory to each of the Administrative
      Agent and the Title Insurance Company by an independent professional licensed
      land surveyor reasonably satisfactory to each of the Administrative Agent and
      the Title Insurance Company;

    

    
      
        
          
          

        

        
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    (vi)    reasonably
      satisfactory Phase I environmental site assessment reports (or other
      environmental reports acceptable to the Administrative Agent) with respect
      to
      each of the Mortgaged Properties, together with (to the extent required by
      the
      Administrative Agent) reliance letters with respect to such reports in favor
      of
      the Lenders;

    

    (vii)   
        opinions
      of counsel to the Borrower or the applicable Credit Party for each jurisdiction
      in which the Mortgaged Properties are located; and

    

    (viii)  
        in
      the
      case of the Properties located in McKinney,
      Texas, Vista, California, Huntersville, North Carolina, Springfield,
      Massachusetts, and Wayne, New Jersey, such estoppel letters, consents and
      waivers from the landlords on such Properties as the Administrative Agent may
      reasonably require; provided,
      that
      the Credit Parties shall not be required (A) to obtain any such consent to
      the
      extent the applicable landlord refuses to execute such consent after the Credit
      Parties have used their commercially reasonable efforts to obtain such consent
      or (B) to expend any significant amount of money to obtain such
      consents.

    

    (e)    Stock
      Certificate and Power.
      Within
      thirty (30) days after the Closing Date (or such extended period of time as
      agreed to by the Administrative Agent), the Administrative Agent shall have
      received the stock certificate evidencing the interest owned by Orthofix Inc.
      in
      Innovative Spinal Technologies and a duly executed in blank undated stock or
      transfer power with respect thereto.

    

    (f)    
Opinion.
      Within
      thirty (30) days after the Closing Date (or such extended period of time as
      agreed to by the Administrative Agent), the Administrative Agent shall have
      received an opinion, in form and substance reasonably satisfactory to the
      Administrative Agent, that the Capital Stock of each of the Credit Parties
      organized under the laws of Delaware is duly authorized, validly issued, fully
      paid, non-assessable and owned of record by such Credit Party.

    

    (g)    Intellectual
      Property.
      Within
      thirty (30) days after the Closing Date (or such extended period of time as
      agreed to by the Administrative Agent), the Administrative Agent shall have
      received evidence that all chain of title issues have been resolved with the
      United States Patent and Trademark Office and all third party security interests
      with respect to the Intellectual Property of the Credit Parties have been
      released of record with the United States Patent and Trademark Office;
provided
      that any
      Indebtedness associated with such security interests shall have been paid in
      full and terminated on or prior to the Closing Date.

    

    
      
        
          
          

        

        
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    ARTICLE
      VI

    

    NEGATIVE
      COVENANTS

    

    The
      Credit Parties hereby covenant and agree that on the Closing Date, and
      thereafter for so long as this Agreement is in effect and until the Commitments
      have terminated, no Note remains outstanding and unpaid and the Credit Party
      Obligations, together with interest, Commitment Fee and all other amounts owing
      to the Administrative Agent or any Lender hereunder, are paid in full that:
      

    

    
      	 	
              Section
                6.1

            	
              Indebtedness.

            

    

    

    No
      Credit
      Party will, nor will it permit any Subsidiary to, contract, create, incur,
      assume or permit to exist any Indebtedness, except:

    

    (a)    Indebtedness
      arising or existing under this Agreement and the other Credit
      Documents;

    

    (b)    Indebtedness
      of the Company and its Subsidiaries existing as of the Closing Date as
      referenced in the financial statements referenced in Section 3.1 or the
      liquidity section of the management discussion and analysis (and set out more
      specifically in Schedule
      6.1(b)
      hereto)
      and renewals, refinancings or extensions thereof in a principal amount not
      in
      excess of that outstanding as of the date of such renewal, refinancing or
      extension; provided
      that the
      Credit Parties party to the intercompany notes set forth on Schedule
      6.1(b)
      hereby
      agree that the intercompany Indebtedness evidenced by such intercompany notes
      shall be subordinated to the Credit Party Obligations and that the Credit Party
      Obligations shall be paid in full prior to any payments being made on such
      intercompany notes, except as permitted by Section 6.10;

    

    (c)    Indebtedness
      of the Borrower and its Subsidiaries incurred after the Closing Date consisting
      of Capital Leases or Indebtedness incurred to provide all or a portion of the
      purchase price or cost of construction of an asset (or assumed or acquired
      by
      the Borrower and its Subsidiaries in connection with a Permitted Acquisition);
      provided
      that (i)
      such Indebtedness to the extent resulting from Capital Leases or as a result
      of
      the purchase price or cost of construction when incurred shall not exceed the
      purchase price or cost of construction of such asset; (ii) no such Indebtedness
      shall be refinanced for a principal amount in excess of the principal balance
      outstanding thereon at the time of such refinancing; and (iii) the total amount
      of all such Indebtedness shall not exceed $10,000,000 at any time
      outstanding;

    

    (d)    Unsecured
      intercompany Subordinated Indebtedness (i)
      owing
      by a Credit Party (other than, subject to clause (iv) below, the Company) to
      another Credit Party; provided
      that any
      Subordinated Indebtedness issued by a Credit Party (other than the Company)
      to
      Colgate or Victory shall be issued in accordance with the Tax Structure
      Documents, (ii)
      among
      the Company and Foreign Subsidiaries, (iii)
      among
      Foreign Subsidiaries and other Foreign Subsidiaries or (iv)
      owing
      by the Company to Colgate or Victory to the extent that such Subordinated
      Indebtedness would be permitted by Section 6.10(d), (f) or (i) if made as a
      Restricted Payment rather than the issuance of Subordinated
      Indebtedness;

    

    
      
        
          
          

        

        
          93

          
            

          

        

        
          
          

        

      

    

    

    (e)    Indebtedness
      of Foreign Subsidiaries in an aggregate amount not to exceed $10,000,000 at
      any
      time outstanding;

    

    (f)    
Indebtedness
      and obligations owing under Secured Hedging Agreements and other Hedging
      Agreements entered into in order to manage existing or anticipated interest
      rate
      or exchange rate risks and not for speculative purposes;

    

    (g)    Indebtedness
      and obligations of the Borrower and its Subsidiaries owing under documentary
      letters of credit for the purchase of goods or other merchandise (but not under
      standby, direct pay or other letters of credit except for the Letters of Credit
      hereunder) generally; 

    

    (h)    (i)
      Indebtedness of the Company or any of its Subsidiaries the proceeds of which
      are
      used to prepay the Term Loan in accordance with Section 2.7 or used to fund
      Permitted Acquisitions so long as such Indebtedness is (and all Guaranty
      Obligations with respect to such Indebtedness are) unsecured and subordinated
      in
      right and time of payment (subject to the terms of Section 6.10(h)) and priority
      to the Credit Party Obligations pursuant to subordination provisions that are
      reasonably satisfactory to the Administrative Agent and (ii)
      Indebtedness of the Company or any of its Subsidiaries the proceeds of which
      are
      used to prepay the Term Loan in accordance with Section 2.7 so long as such
      Indebtedness is (and all Guaranty Obligations with respect to such Indebtedness
      are) unsecured; provided,
      in each
      case that (A)
      the
      covenants and events of default of such Indebtedness are, taken as a whole,
      materially less restrictive than those contained in this Agreement (and shall
      not include any covenant or event of default more restrictive than those
      contained in this Agreement), (B)
      both
      immediately prior and after giving effect thereto, (1) no Default or Event
      of
      Default shall exist or result therefrom and (2) the Company shall be in
      compliance with the financial covenants set forth in Section 5.9, such
      compliance immediately after giving effect thereto determined with regard to
      calculations made on a Pro Forma Basis for the fiscal quarter most recently
      ended, and the Administrative Agent shall have received a certificate of a
      Responsible Officer of the Borrower to such effect, and (C)
      such
      Indebtedness matures, and does not require any scheduled amortization or other
      scheduled or mandatory payments of principal or first scheduled put right prior
      to, the date which is at least 120 days after the later of the Term Loan
      Maturity Date and the maturity date of any Incremental Term Facility, other
      than
      (1) redemptions made at the option of the holders of such Indebtedness upon
      a
      change in control of the issuer in circumstances that would also constitute
      a
      Change of Control under this Agreement (provided
      that any
      such redemption cannot be made fewer than thirty (30) days after such change
      in
      control and that any such redemption is fully subordinated to the indefeasible
      payment in full of all Credit Party Obligations), (2) mandatory prepayments
      required as a result of asset dispositions if such Indebtedness allows the
      issuer to satisfy such mandatory prepayment requirement by prepayment of Loans
      under this Agreement or other senior obligations of the issuer or reinvestment
      of the asset disposition proceeds within a specified period of time and (3)
      payments permitted by Section 6.10(h)(ii); 

    

    
      
        
          
          

        

        
          94

          
            

          

        

        
          
          

        

      

    

    

    (i)    
Guaranty
      Obligations in respect of Indebtedness of the Company and its Subsidiaries
      to
      the extent such Indebtedness is permitted to exist or be incurred pursuant
      to
      this Section 6.1; and 

    

    (j)    
other
      unsecured Indebtedness of the Company and its Subsidiaries which does not exceed
      $10,000,000 in
      the
      aggregate at any time outstanding.

    

    
      	 	
              Section
                6.2

            	
              Liens.

            

    

    

    No
      Credit
      Party will, nor will it permit any of its Subsidiaries to, contract, create,
      incur, assume or permit to exist any Lien with respect to any of its property
      or
      assets of any kind (whether real or personal, tangible or intangible), whether
      now owned or hereafter acquired, except for Permitted Liens. Notwithstanding
      the
      foregoing, if a Credit Party shall grant a Lien on any of its assets in
      violation of this Section, then it shall be deemed to have simultaneously
      granted an equal and ratable Lien on any such assets in favor of the
      Administrative Agent for the ratable benefit of the Lenders and the Hedging
      Agreement Providers, to the extent such Lien has not already been granted to
      the
      Administrative Agent.

    

    
      	 	
              Section
                6.3

            	
              Nature
                of Business.

            

    

    

    Each
      of
      the Credit Parties will not, nor will any Credit Party permit any Subsidiary
      to,
      alter the character of its business or any business activities reasonably
      related thereto in any material respect from that conducted as of the Closing
      Date; provided
      that the
      foregoing shall not apply to the cessation of business activities that the
      applicable Credit Party or Subsidiary reasonably believes should no longer
      be
      conducted by such Credit Party or Subsidiary.

    

    
      	 	
              Section
                6.4

            	
              Consolidation,
                Merger, Sale or Purchase of Assets, etc.

            

    

    

    Each
      of
      the Credit Parties will not, nor will the Credit Parties permit any Subsidiary
      to,

    

    (a)    dissolve,
      liquidate or wind up its affairs, sell, transfer, lease or otherwise dispose
      of
      its property or assets or agree to do so at a future time except the following,
      shall be expressly permitted:

    

    (i)    
the
      sale,
      transfer, lease or other disposition of inventory and materials in the ordinary
      course of business;

    

    (ii)    the
      sale,
      transfer or other disposition of cash and Cash Equivalents;

    

    
      
        
          
          

        

        
          95

          
            

          

        

        
          
          

        

      

    

    

    (iii)   (A)
      the
      disposition of property or assets as a direct result of a Recovery Event or
      (B)
      the sale, lease, transfer or other disposition of machinery, parts and equipment
      no longer used or useful in the conduct of the business of the Borrower or
      any
      of its Subsidiaries, so long as the Net Cash Proceeds from such dispositions,
      sales, leases or transfers pursuant to clause (A) or (B) are used to replace
      such machinery, parts and equipment or to purchase or otherwise acquire new
      assets or property within 180 days of receipt of the Net Cash Proceeds or,
      with
      respect to dispositions pursuant to clause (A), such Net Cash Proceeds are
      used
      to prepay Loans and cash collateralize outstanding LOC Obligations in accordance
      with the terms of Section 2.7(b)(iv); provided
      that,
      upon the occurrence and during the continuance of a Default or an Event of
      Default, the Credit Parties and their Subsidiaries shall not have the right
      to
      reinvest such Net Cash Proceeds;

    

    (iv)   the
      sale,
      lease or transfer of property or assets between or among (A)
      the
      Borrower and the Subsidiary Guarantors; provided
      that any
      sale, lease or transfer of property or assets to Swiftsure and UK Ltd shall
      be
      limited to sales or transfers of property or assets in accordance with the
      Tax
      Structure Documents, or (B)
      the
      Foreign Subsidiaries of the Company and other Foreign Subsidiaries of the
      Company;

    

    (v)    the
      termination of any Hedging Agreement permitted pursuant to Section 6.1(f);
      

    

    (vi)   the
      factoring or disposition of receivables by SRL in connection with the
      Indebtedness of SRL set forth on Schedule
      6.1(b);

    

    (vii)   
        the
      sale
      of any assets set forth on Schedule
      6.4(a);
      provided
      that the
      Net Cash Proceeds from any such sale shall be applied to the Loans and the
      outstanding LOC Obligations in accordance with the terms of Section 2.7(b)(ii)
      (excluding any reinvestment right contained in such Section);

    

    (viii)  
        the
      liquidation or dissolution of (A)
      any
      Domestic Subsidiary of the Company that has no assets or that has sold, disposed
      of or otherwise transferred all of its assets to the Borrower or a Subsidiary
      Guarantor, (B)
      any
      Foreign Subsidiary of the Company that has no assets or that has sold, disposed
      of or otherwise transferred all of its assets to the Borrower or a Subsidiary
      Guarantor or another Foreign Subsidiary or (C)
      Colgate, Victory, Swiftsure or UK Ltd if it has no assets or has sold, disposed
      of or otherwise transferred all of its assets to the Borrower or a Subsidiary
      Guarantor; provided
      that
      Victory shall not be liquidated or dissolved unless the Administrative Agent
      receives a first priority, perfected security interest in 100% of the Capital
      Stock of the Borrower from the parent company of the Borrower after giving
      effect to such liquidation or dissolution on terms satisfactory to the
      Administrative Agent; and

    

    (ix)    the
      sale,
      lease, transfer or other disposition of property or assets not to exceed
      $3,000,000 in the aggregate in any fiscal year; 

    

    
      
        
          
          

        

        
          96

          
            

          

        

        
          
          

        

      

    

    

    provided,
      that,
      in the case of clauses (i), (ii), (iii), (vii) and (ix) above, at least 75%
      of
      the consideration received therefore by the Borrower or any other Credit Party
      is in the form of cash or Cash Equivalents; provided,
      further,
      that
      with respect to sales, transfers, leases or other dispositions of assets
      permitted hereunder only, the Administrative Agent shall without the consent
      of
      the Required Lenders, release its Liens relating to the particular assets sold,
      transferred, leased or otherwise disposed of; or

    

    (b)    (i)
      purchase, lease or otherwise acquire (in a single transaction or a series of
      related transactions) the property or assets of any Person (other than
      purchases, leases or other acquisitions of inventory, leases, materials,
      property and equipment in the ordinary course of business, except as otherwise
      limited or prohibited herein) or (ii)
      enter
      into any transaction of merger or consolidation, except for (A) consummation
      of
      the Acquisition, (B) investments or acquisitions permitted pursuant to Section
      6.5, and (C) the merger or consolidation of (I) a Credit Party (other than
      the
      Company, Colgate or Victory) with and into another Credit Party (other than
      the
      Company, Colgate or Victory);
      provided
      that
      (y)
      if the
      Borrower is a party thereto, the Borrower will be the surviving
      corporation
      and (z)
      the Administrative Agent’s Liens with respect to the Collateral of each Credit
      Party involved in such merger or consolidation shall remain continuously
      perfected;
      and
      (II) a Foreign Subsidiary into another Foreign Subsidiary.

    

    
      	 	
              Section
                6.5

            	
              Advances,
                Investments and Loans.

            

    

    

    No
      Credit
      Party will, nor will it permit any Subsidiary to, make any Investment except
      for
      Permitted Investments.

    

    
      	 	
              Section
                6.6

            	
              Transactions
                with Affiliates.

            

    

    

    Except
      as
      permitted in subsections (c), (d), (e), (f) or (k) of the definition of
      Permitted Investments, no Credit Party will, nor will it permit any Subsidiary
      to, enter into any transaction or series of transactions, whether or not in
      the
      ordinary course of business, with any officer, director, shareholder or
      Affiliate other than on terms and conditions substantially as favorable as
      would
      be obtainable in a comparable arm’s-length transaction with a Person other than
      an officer, director, shareholder or Affiliate.

    

    
      	 	
              Section
                6.7

            	
              Ownership
                of Subsidiaries; Restrictions.

            

    

    

    Neither
      Colgate, Victory, the Borrower, nor any Subsidiary Guarantor will, nor will
      it
      permit any Subsidiary to, create, form or acquire any Subsidiaries, except
      for
      Domestic Subsidiaries which are Credit Parties or which are joined as Additional
      Credit Parties in accordance with the terms hereof. Neither Colgate, Victory,
      the Borrower, nor any Subsidiary Guarantor will sell, transfer, pledge or
      otherwise dispose of any Capital Stock or other equity interests in any of
      its
      Subsidiaries, nor will it permit any of its Subsidiaries to issue, sell,
      transfer, pledge or otherwise dispose of any of their Capital Stock or other
      equity interests, except in a transaction permitted by Section 6.4.

    

    
      
        
          
          

        

        
          97

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              Section
                6.8

            	
              Fiscal
                Year; Organizational Documents; Material Contracts; Subordinated
                Indebtedness
                Documents.

            

    

    

    Each
      of
      the Credit Parties will not, nor will any Credit Party permit any Subsidiary
      to,
      change its fiscal year or its accounting policies except as required by GAAP.
      Except as permitted pursuant to Section 5.4, each of the Credit Parties will
      not, nor will any Credit Party permit any Subsidiary to, amend, modify or change
      its articles of incorporation (or corporate charter or other similar
      organizational document) or bylaws (or other similar document) in a manner
      adverse to the interests of the Lenders without the prior written consent of
      the
      Required Lenders; provided
      that the
      Company shall be permitted to amend such documents to provide for the issuance
      of any classes or series of Capital Stock so long as such issuance does not
      result in a Change of Control and the Capital Stock issued is not subject to
      mandatory sinking fund payments, redemption or other acceleration or similar
      rights or payments. Each of the Credit Parties will not, nor will any Credit
      Party permit any Subsidiary to,
      without
      the prior written consent of the Administrative Agent, amend, modify, cancel
      or
      terminate or fail to renew or extend or permit the amendment, modification,
      cancellation or termination of any of the Material Contracts to the extent
      any
      amendment, modification, cancellation, termination or failure to renew or extend
      could reasonably be expected to have a Material Adverse Effect. Each of the
      Credit Parties and their Subsidiaries will not, without the prior written
      consent of the Required Lenders, amend, modify, waive or extend or permit the
      amendment, modification, waiver or extension of any Subordinated Indebtedness
      or
      of any documentation governing or evidencing such Subordinated Indebtedness
      in a
      manner that is adverse to the interests of the Lenders or the issuer of such
      Subordinated Indebtedness.

    

    
      	 	
              Section
                6.9

            	
              Limitation
                on Restricted Actions.

            

    

    

    No
      Credit
      Party will, nor will it permit any Subsidiary to, directly or indirectly, create
      or otherwise cause or suffer to exist or become effective any encumbrance or
      restriction on the ability of any such Person to (a) pay dividends or make
      any
      other distributions to any Credit Party on its Capital Stock or with respect
      to
      any other interest or participation in, or measured by, its profits, (b) pay
      any
      Indebtedness or other obligation owed to any Credit Party, (c) make loans or
      advances to any Credit Party, (d) sell, lease or transfer any of its properties
      or assets to any Credit Party, or (e) act as a guarantor and pledge its assets
      pursuant to the Credit Documents or any renewals, refinancings, exchanges,
      refundings or extensions thereof, except (in respect of any of the matters
      referred to in clauses (a)-(d) above) for such encumbrances or restrictions
      existing under or by reason of (i) this Agreement and the other Credit
      Documents, (ii) applicable law, (iii) any document or instrument governing
      Indebtedness incurred pursuant to Section 6.1(c) or Guaranty Obligations with
      respect to any of the foregoing; provided
      that any
      such restriction contained therein relates only to the asset or assets
      constructed or acquired in connection therewith, or (iv) any Permitted Lien
      or
      any document or instrument governing any Permitted Lien; provided
      that any
      such restriction contained therein relates only to the asset or assets subject
      to such Permitted Lien.

    

    
      
        
          
          

        

        
          98

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              Section
                6.10

            	
              Restricted
                Payments.

            

    

    

    No
      Credit
      Party will, nor will it permit any Subsidiary to, directly or indirectly,
      declare, order, make or set apart any sum for or pay any Restricted Payment
      except (a)
      to make
      dividends or distributions payable solely in the same class of Capital Stock
      of
      such Person (including, without limitation, stock splits provided that they
      are
      in the same class of Capital Stock of such Person), (b)
      to make
      dividends or other distributions (directly or indirectly through Subsidiaries)
      payable to any Credit Party other than the Company, (c)
      to make
      dividends or other distributions by a Foreign Subsidiary of the Company payable
      (directly or indirectly through Subsidiaries) to any Credit Party or any other
      Foreign Subsidiary, (d)
      to make
      dividends payable solely to allow the Company, Colgate or Victory to pay federal
      and state local taxes then due and owing, (e)
      so long
      as no Event of Default has occurred and is continuing or would result therefrom,
      to make (i) payments on intercompany Subordinated Indebtedness permitted under
      Sections 6.1(b) and (d), or (ii) Permitted Investments in accordance with the
      Tax Structure Documents; provided
      that
      (A)
      no
      payment shall be made pursuant to this Subsection from a Credit Party to the
      Company or any Foreign Subsidiary thereof and (B)
      no
      payment shall be made to Colgate or Victory except in accordance with the Tax
      Structure Documents, (f)
      so long
      as (i)
      no
      Default or Event of Default exists or would exist on a Pro Forma Basis after
      giving effect to such Restricted Payment and (ii)
      the
      Leverage Ratio is less than 1.75 to 1.0 (A)
      before
      giving effect to any such Restricted Payment and (B)
      on a
      Pro Forma Basis after giving effect to any such Restricted Payment (and in
      the
      case of any Restricted Payment or series of related Restricted Payments in
      an
      amount in excess of $5,000,000, the Borrower shall have furnished to the
      Administrative Agent a compliance certificate as to such compliance, together
      with supporting calculations), to make Restricted Payments in an aggregate
      amount that, taken together with the aggregate of all other Restricted Payments
      made by the Credit Parties and their Subsidiaries (other than Restricted
      Payments permitted under other subsections of this Section 6.10) from and after
      the Closing Date, does not exceed the sum of 25% of Excess Cash Flow for the
      period from the Closing Date to the end of the most recently ended fiscal year
      for which the Company has delivered financial statements as required by Section
      5.1(a) which then may be paid to the shareholders of the Company in the form
      of
      a dividend or other distribution or may be used by the Company for other
      corporate purposes, (g)
      so long
      as no Default or Event of Default exists or would exist on a Pro Forma Basis
      after giving effect to such Restricted Payment, to repurchase Capital Stock,
      warrants, options or other rights to acquire Capital Stock of the Company from
      current or former officers, employees or directors (or their heirs or estates)
      of a Credit Party or any Subsidiary in connection with the death, disability
      or
      termination of employment of any such Person in an aggregate amount not to
      exceed $2,500,000 in any fiscal year and $5,000,000 during the term of this
      Agreement, (h)
      (i)
      to make
      distributions to pay regularly scheduled interest payments on Subordinated
      Indebtedness issued by a Credit Party permitted by Section 6.1(h) pursuant
      to
      the subordination provisions applicable thereto and
      (ii)
      to the
      extent that Net Cash Proceeds resulting from the issuance of Subordinated
      Indebtedness pursuant to Section 6.1(h) shall have been applied to repay the
      Term Loan as set forth in Section 2.7(b) (and not to finance Permitted
      Acquisitions) and so long as no Default or Event of Default shall have occurred
      and be continuing, or would result therefrom on an actual or Pro Forma Basis,
      if
      any such Subordinated Indebtedness shall contain a provision permitting a holder
      thereof to convert or exchange such Indebtedness for common equity of the
      Company and/or cash, to make payments in respect thereof upon the occurrence
      of
      the event giving rise to such holders right to conversion or exchange and
      (i)
      so long
      as no Default or Event of Default exists or would exist on a Pro Forma Basis
      after giving effect to such Restricted Payment, (A) the Company may make earnout
      payments and any other deferred payment paid as consideration pursuant to a
      Permitted Acquisition by the Company and (B) the Borrower and its Subsidiaries
      may make earnout payments and any other deferred payment paid as consideration
      pursuant to a Permitted Acquisition by the Borrower or any of its
      Subsidiaries.

    

    
      
        
          
          

        

        
          99

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              Section
                6.11

            	
              Sale
                Leasebacks.

            

    

    

    No
      Credit
      Party will, nor will it permit any Subsidiary to, directly or indirectly become
      or remain liable as lessee or as guarantor or other surety with respect to
      any
      lease, whether an operating lease or a Capital Lease, of any property (whether
      real, personal or mixed), whether now owned or hereafter acquired, which any
      Credit Party or any Subsidiary has sold or transferred or is to sell or transfer
      to a Person which is not another Credit Party or Subsidiary
      thereof.

    

    
      	 	
              Section
                6.12

            	
              No
                Further Negative Pledges.

            

    

    

    No
      Credit
      Party will, nor will it permit any Subsidiary to, enter into, assume or become
      subject to any agreement prohibiting or otherwise restricting the creation
      or
      assumption of any Lien upon its properties or assets, whether now owned or
      hereafter acquired, or requiring the grant of any security for such obligation
      if security is given for some other obligation, except (a) pursuant to this
      Agreement and the other Credit Documents, (b) pursuant to any document or
      instrument governing Indebtedness incurred pursuant to Section 6.1(c),
provided
      that any
      such restriction contained therein relates only to the asset or assets
      constructed or acquired in connection therewith and (c) in connection with
      any
      Permitted Lien or any document or instrument governing any Permitted Lien;
      provided
      that any
      such restriction contained therein relates only to the asset or assets subject
      to such Permitted Lien.

    

    
      	 	
              Section
                6.13

            	
              Accounts.

            

    

    

    Set
      forth
      on Schedule
      6.13
      is a
      complete and accurate list of all checking, savings or other accounts (including
      securities accounts) of the Credit Parties at any bank or other financial
      institution, or any other account where money is or may be deposited or
      maintained with any Person as of the Closing Date. At anytime on or after
      November 22, 2006, each of the Credit Parties (other than the Company) will
      not,
      nor will it permit any Subsidiary to, open,
      maintain or otherwise have any checking, savings or other accounts (including
      securities accounts) at any bank or other financial institution, or any other
      account where money is or may be deposited or maintained with any Person, other
      than (a)
      the
      accounts set forth on Schedule
      6.13
      and
      designated as unrestricted accounts; provided
      that the
      balance on any such account does not exceed $500,000 and the aggregate balance
      in all such accounts does not exceed $1,500,000, (b)
      deposit
      accounts that are subject to a Deposit Account Control Agreement, (c)
      securities accounts that are subject to a Securities Account Control Agreement,
      (d)
      deposit
      accounts established solely as payroll and other zero balance accounts and
      (e)
      deposit
      accounts, so long as at any time the balance in any such account does not exceed
      $500,000 and the aggregate balance in all such accounts does not exceed
      $1,500,000.

    

    
      
        
          
          

        

        
          100

          
            

          

        

        
          
          

        

      

    

    

    ARTICLE
      VII

    

    EVENTS
      OF DEFAULT

    

    
      	 	
              Section
                7.1

            	
              Events
                of Default.

            

    

    

    An
      Event
      of Default shall exist upon the occurrence of any of the following specified
      events (each an “Event
      of Default”):

    

    (a)    The
      Borrower shall fail to pay any principal on any Loan when due in accordance
      with
      the terms thereof or hereof; or the Borrower shall fail to reimburse the Issuing
      Lender for any outstanding LOC Obligations when due in accordance with the
      terms
      hereof; or the Borrower shall fail to pay any interest on any Loan or any fee
      or
      other amount payable hereunder when due in accordance with the terms thereof
      or
      hereof and such failure shall continue unremedied for three (3) Business Days
      (or any Guarantor shall fail to pay on the Guaranty in respect of any of the
      foregoing or in respect of any other Guaranty Obligations thereunder within
      the
      aforesaid period of time); or

    

    (b)    Any
      representation or warranty made or deemed made herein or in any of the other
      Credit Documents or which is contained in any certificate, document or financial
      or other written statement furnished at any time under or in connection with
      this Agreement shall prove to have been incorrect, false or misleading in any
      material respect on or as of the date made or deemed made; or

    

    (c)    (i)
      Any
      of the Credit Parties or their Subsidiaries shall fail to perform, comply with
      or observe any term, covenant or agreement applicable to it contained in Section
      5.1(a), (b) and (c), Section 5.2, Section 5.4, Section 5.7(a) and (d), Section
      5.9 or Article VI hereof; or (ii) any Credit Party shall fail to comply with
      any
      other covenant, contained in this Credit Agreement or the other Credit Documents
      or any other agreement, document or instrument among any Credit Party, the
      Administrative Agent and the Lenders or executed by any Credit Party in favor
      of
      the Administrative Agent or the Lenders (other than as described in Sections
      7.1(a), 7.1(b) or 7.1(c)(i) above), and in the event such breach or failure
      to
      comply is capable of cure, is not cured within thirty (30) days of its
      occurrence; or

    

    (d)    Any
      of
      the Credit Parties or their Subsidiaries shall (i) default in any payment
      of principal of or interest on any Indebtedness (other than the Notes) in a
      principal amount outstanding of at least $5,000,000 in the aggregate for the
      Credit Parties and their Subsidiaries beyond the period of grace (not to exceed
      30 days), if any, provided in the instrument or agreement under which such
      Indebtedness was created; (ii) default in the observance or performance of
      any
      other agreement or condition relating to any Indebtedness in a principal amount
      outstanding of at least $5,000,000 in the aggregate for the Credit Parties
      and
      their Subsidiaries or contained in any instrument or agreement evidencing,
      securing or relating thereto, or any other event shall occur or condition exist,
      and, with respect to the foregoing, the effect of such default or other event
      or
      condition is to cause, or to permit the holder or holders of such Indebtedness
      or beneficiary or beneficiaries of such Indebtedness (or a trustee or agent
      on
      behalf of such holder or holders or beneficiary or beneficiaries) to cause,
      with
      the giving of notice if required, such Indebtedness to become due prior to
      its
      stated maturity; or (iii)
      default
      under any Secured Hedging Agreement; or

    

    
      
        
          
          

        

        
          101

          
            

          

        

        
          
          

        

      

    

    

    (e)    (i)
      Any
      of the Credit Parties or their Subsidiaries shall commence any case, proceeding
      or other action (A) under any existing or future law of any jurisdiction,
      domestic or foreign, relating to bankruptcy, insolvency, reorganization or
      relief of debtors, seeking to have an order for relief entered with respect
      to
      it, or seeking to adjudicate it a bankrupt or insolvent, or seeking
      reorganization, arrangement, adjustment, suspension of payment, winding-up,
      liquidation, dissolution, composition or other relief with respect to it or
      its
      debts, or (B) seeking appointment of a receiver, trustee, custodian,
      conservator, administrator, administrative receiver, compulsory manager or
      other
      similar official for it or for all or any substantial part of its assets, or
      the
      Credit Parties or their Subsidiaries shall make a general assignment or
      arrangement for the benefit of any of its creditors; or (ii) there shall be
      commenced against any of the Credit Parties or their Subsidiaries any case,
      proceeding or other action of a nature referred to in clause (i) above which
      (A)
      results in the entry of an order for relief or any such adjudication or
      appointment or (B) remains undismissed, undischarged or unbonded for, with
      respect to such proceeding or other action in a jurisdiction outside the United
      States, a period of thirty (30) days and, with respect to such proceeding or
      other action in a United States jurisdiction, a period of sixty (60) days;
      or
      (iii) there shall be commenced against any of the Credit Parties or their
      Subsidiaries, any case, proceeding or other action seeking issuance of a warrant
      of attachment, execution, distraint or similar process against all or any
      substantial part of its assets which results in the entry of an order for any
      such relief which shall not have been vacated, discharged, or stayed or bonded
      pending appeal within, with respect to such case, proceeding or other action
      in
      a jurisdiction outside the United States, thirty (30) days from the entry
      thereof and, with respect such case, proceeding or other action in a United
      States jurisdiction, sixty (60) days from the entry thereof; or (iv) any of
      the
      Credit Parties or their Subsidiaries shall take any action in furtherance of,
      or
      indicating its consent to, approval of, or acquiescence in, any of the acts
      set
      forth in clauses (i), (ii), or (iii) above; or (v) any of the Credit Parties
      (together with their Subsidiaries taken as a whole) shall fail to be Solvent;
      or

    

    (f)    
One
      or
      more judgments or decrees shall be entered against any of the Credit Parties
      and
      shall not have been paid and satisfied, vacated, discharged, stayed or bonded
      pending appeal within ten (10) days from the entry thereof to the extent such
      judgments and decrees involve a liability (to the extent not paid when due
      or
      covered by insurance in excess of $5,000,000 in the aggregate); or

    

    (g)    (i)
      Any
      Person shall engage in any “prohibited transaction” (as defined in Section 406
      of ERISA or Section 4975 of the Code) involving any Single Employer Plan, (ii)
      any “accumulated funding deficiency” (as defined in Section 302 of ERISA),
      whether or not waived, shall exist with respect to any Single Employer Plan
      or
      any Lien in favor of a Single Employer Plan or in favor of the PBGC with respect
      to a Single Employer Plan (other than a Permitted Lien) shall arise on the
      assets of any Credit Party or any Commonly Controlled Entity, (iii) a Reportable
      Event shall occur with respect to, or proceedings shall commence to have a
      trustee appointed, or a trustee shall be appointed, to administer or to
      terminate, any Single Employer Plan, which Reportable Event or commencement
      of
      proceedings or appointment of a Trustee is, in the reasonable opinion of the
      Required Lenders, likely to result in the termination of such Plan for purposes
      of Title IV of ERISA, (iv) any Single Employer Plan shall terminate for purposes
      of Title IV of ERISA, or (v) any Credit Party or any Commonly Controlled
      Entity shall incur any liability in connection with a withdrawal from, or the
      Insolvency or Reorganization of, any Multiemployer Plan; and in each case in
      clauses (i) through (v) above, such event or condition, together with all other
      such events or conditions, if any, could reasonably be expected to have a
      Material Adverse Effect; or

    

    
      
        
          
          

        

        
          102

          
            

          

        

        
          
          

        

      

    

    

    (h)    There
      shall occur a Change of Control; or

    

    (i)    
The
      Guaranty or any provision thereof shall cease to be in full force and effect
      or
      any Guarantor or any Person authorized to act by or on behalf of any Guarantor
      shall deny or disaffirm any Guarantor’s obligations under the Guaranty;
      or

    

    (j)    
(i)
      Any
      other Credit Document or any security interest or Lien granted thereunder shall
      fail to be in full force and effect, shall be declared null and void or shall
      fail to give the Administrative Agent and/or the Lenders the security interests,
      liens, perfection, priority, rights, powers and privileges purported to be
      created thereby (except as such documents may be terminated or no longer in
      force and effect in accordance with the terms thereof, other than those
      indemnities and provisions which by their terms shall survive); or (ii) any
      Credit Party or any Person authorized to act by or on behalf of any Credit
      Party
      shall deny or disaffirm any Credit Party Obligations or shall deny, disaffirm
      or
      contest the validity, perfection or priority of any security interest or Lien
      granted under the Security Documents; or

    

    (k)    Any
      default (which is not waived or cured within the applicable period of grace)
      or
      event of default shall occur under any document governing or evidencing any
      Subordinated Indebtedness or the subordination provisions contained therein
      shall cease to be in full force and effect or to give the Administrative Agent
      and the Lenders the rights, powers and privileges purported to be created
      thereby; or

    

    (l)    
any
      Credit Party shall be temporarily or permanently excluded from, or have payments
      suspended under, (i) any Medicaid Provider Agreement, Medicaid Certification,
      Medicare Provider Agreement or Medicare Certification or (ii) any Medical
      Reimbursement Program, where such exclusion or suspension arises from fraud
      or
      other claims or allegations which, individually or in the aggregate, could
      reasonably be expected to have a Material Adverse Effect. 

    

    
      
        
          
          

        

        
          103

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              Section
                7.2

            	
              Acceleration;
                Remedies.

            

    

    

    Upon
      the
      occurrence and during the continuation of an Event of Default, then, and in
      any
      such event, (a) if such event is an Event of Default specified in Section 7.1(e)
      above with respect to any Credit Party or any material Subsidiary of the
      Company, automatically the Commitments shall immediately terminate and the
      Loans
      (with accrued interest thereon), and all other amounts under the Credit
      Documents (including without limitation the maximum amount of all contingent
      liabilities under Letters of Credit) shall immediately become due and payable,
      and (b) if such event is any other Event of Default, any or all of the following
      actions may be taken: (i) with the written consent of the Required Lenders,
      the
      Administrative Agent may, or upon the written request of the Required Lenders,
      the Administrative Agent shall, by notice to the Borrower declare the
      Commitments to be terminated forthwith, whereupon the Commitments shall
      immediately terminate; (ii) the Administrative Agent may, or upon the written
      request of the Required Lenders, the Administrative Agent shall, by notice
      of
      default to the Borrower, declare the Loans (with accrued interest thereon)
      and
      all other amounts
      owing under this Agreement and the Notes to be due and payable forthwith and
      direct the Borrower to pay to the Administrative Agent cash collateral as
      security for the outstanding LOC Obligations for subsequent drawings under
      then
      outstanding Letters of Credit in an amount equal to the maximum amount of which
      may be drawn under Letters of Credit then outstanding, whereupon the same shall
      immediately become due and payable; (iii) exercise any rights or remedies of
      the
      Administrative Agent or the Lenders under this Agreement or any other Credit
      Document, including, without limitation, any rights or remedies with respect
      to
      the Collateral; and (iv) exercise any rights or remedies available to the
      Administrative Agent or Lenders under applicable law.

     

    ARTICLE
      VIII

    

    THE
      AGENT

    

    
      	 	
              Section
                8.1

            	
              Appointment.

            

    

    

    Each
      Lender hereby irrevocably designates and appoints Wachovia Bank, National
      Association as the Administrative Agent of such Lender under this Agreement,
      and
      each such Lender irrevocably authorizes Wachovia Bank, National Association,
      as
      the Administrative Agent for such Lender, to take such action on its behalf
      under the provisions of this Agreement and to exercise such powers and perform
      such duties as are expressly delegated to the Administrative Agent by the terms
      of this Agreement, together with such other powers as are reasonably incidental
      thereto. Notwithstanding any provision to the contrary elsewhere in this
      Agreement, the Administrative Agent shall not have any duties or
      responsibilities, except those expressly set forth herein, or any fiduciary
      relationship with any Lender, and no implied covenants, functions,
      responsibilities, duties, obligations or liabilities shall be read into this
      Agreement or otherwise exist against the Administrative Agent.

    

    
      
        
          
          

        

        
          104

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              Section
                8.2

            	
              Delegation
                of Duties.

            

    

    

    The
      Administrative Agent may execute any of its duties under this Agreement by
      or
      through agents or attorneys-in-fact and shall be entitled to advice of counsel
      concerning all matters pertaining to such duties. The Administrative Agent
      shall
      not be responsible for the negligence or misconduct of any agents or
      attorneys-in-fact selected by it with reasonable care. Without limiting the
      foregoing, but subject to the provisions of Section 8.3, the Administrative
      Agent may appoint one of its affiliates as its agent to perform the functions
      of
      the Administrative Agent hereunder relating to the advancing of funds to the
      Borrower and distribution of funds to the Lenders and to perform such other
      related functions of the Administrative Agent hereunder as are reasonably
      incidental to such functions.

    

    
      	 	
              Section
                8.3

            	
              Exculpatory
                Provisions.

            

    

    

    Neither
      the Administrative Agent nor any of its officers, directors, employees, agents,
      attorneys-in-fact or affiliates shall be (i) liable for any action lawfully
      taken or omitted to be taken by it or such Person under or in connection with
      this Agreement (except for its or such Person’s own gross negligence or willful
      misconduct) or (ii) responsible in any manner to any of the Lenders for any
      recitals, statements, representations or warranties made by the Borrower or
      any
      officer thereof contained in this Agreement or in any certificate, report,
      statement or other document referred to or provided for in, or received by
      the
      Administrative Agent under or in connection with, this Agreement or for the
      value, validity, effectiveness, genuineness, enforceability or sufficiency
      of
      any of the Credit Documents or for any failure of the Borrower to perform its
      obligations hereunder or thereunder. The Administrative Agent shall not be
      under
      any obligation to any Lender to ascertain or to inquire as to the observance
      or
      performance by the Borrower of any of the agreements contained in, or conditions
      of, this Agreement, or to inspect the properties, books or records of the
      Borrower and its Subsidiaries.

    

    
      	 	
              Section
                8.4

            	
              Reliance
                by Administrative Agent.

            

    

    

    (a)    The
      Administrative Agent shall be entitled to rely, and shall be fully protected
      in
      relying, upon any Note, writing, resolution, notice, consent, certificate,
      affidavit, letter, cablegram, telegram, telecopy, telex or teletype message,
      statement, order or other document or conversation believed by it in good faith
      to be genuine and correct and to have been signed, sent or made by the proper
      Person or Persons and upon advice and statements of legal counsel (including,
      without limitation, counsel to any Credit Party), independent accountants and
      other experts selected by the Administrative Agent. The Administrative Agent
      may
      deem and treat the payee of any Note as the owner thereof for all purposes
      unless (a) a written notice of assignment, negotiation or transfer thereof
      shall
      have been filed with the Administrative Agent and (b) the Administrative Agent
      shall have received the written agreement of such assignee to be bound hereby
      as
      fully and to the same extent as if such assignee were an original Lender party
      hereto, in each case in form satisfactory to the Administrative Agent. The
      Administrative Agent shall be fully justified in failing or refusing to take
      any
      action under this Agreement unless it shall first receive such advice or
      concurrence of the Required Lenders as it deems appropriate or it shall first
      be
      indemnified to its satisfaction by the Lenders against any and all liability
      and
      expense which may be incurred by it by reason of taking or continuing to take
      any such action. The Administrative Agent shall in all cases be fully protected
      in acting, or in refraining from acting, under any of the Credit Documents
      in
      accordance with a request of the Required Lenders or all of the Lenders, as
      may
      be required under this Agreement, and such request and any action taken or
      failure to act pursuant thereto shall be binding upon all the Lenders and all
      future holders of the Notes.

    

    
      
        
          
          

        

        
          105

          
            

          

        

        
          
          

        

      

    

    

    (b)    For
      purposes of determining compliance with the conditions specified in
      Section 4.1, each Lender that has signed this Agreement shall be deemed to
      have consented to, approved or accepted or to be satisfied with, each document
      or other matter required thereunder to be consented to or approved by or
      acceptable or satisfactory to a Lender.

    

    
      	 	
              Section
                8.5

            	
              Notice
                of Default.

            

    

    

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

    

    
      	 	
              Section
                8.6

            	
              Non-Reliance
                on Administrative Agent and Other Lenders.

            

    

    

    Each
      Lender expressly acknowledges that neither the Administrative Agent nor any
      of
      its officers, directors, employees, agents, attorneys-in-fact or affiliates
      has
      made any representation or warranty to it and that no act by the Administrative
      Agent hereinafter taken, including any review of the affairs of the Borrower,
      shall be deemed to constitute any representation or warranty by the
      Administrative Agent to any Lender. Each Lender represents to the Administrative
      Agent that it has, independently and without reliance upon the Administrative
      Agent or any other Lender, and based on such documents and information as it
      has
      deemed appropriate, made its own appraisal of and investigation into the
      business, operations, property, financial and other condition and
      creditworthiness of the Borrower and made its own decision to make its Loans
      hereunder and enter into this Agreement. Each Lender also represents that it
      will, independently and without reliance upon the Administrative Agent or any
      other Lender, and based on such documents and information as it shall deem
      appropriate at the time, continue to make its own credit analysis, appraisals
      and decisions in taking or not taking action under this Agreement, and to make
      such investigation as it deems necessary to inform itself as to the business,
      operations, property, financial and other condition and creditworthiness of
      the
      Borrower. Except for notices, reports and other documents expressly required
      to
      be furnished to the Lenders by the Administrative Agent hereunder, the
      Administrative Agent 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 Borrower which may come into the possession of the Administrative Agent
      or
      any of its officers, directors, employees, agents, attorneys-in-fact or
      affiliates.

    

    
      
        
          
          

        

        
          106

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              Section
                8.7

            	
              Indemnification.

            

    

    

    The
      Lenders agree to indemnify the Administrative Agent and the Revolving Lenders
      agree to indemnify the Issuing Lender and the Swingline Lender, in each case
      in
      its capacity hereunder and their Affiliates and their respective officers,
      directors, agents and employees (to the extent not reimbursed by the Borrower
      and without limiting any obligation of the Borrower to do so), ratably according
      to their respective Commitment Percentages in effect on the date on which
      indemnification is sought under this Section, from and against any and all
      liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
      costs, expenses or disbursements of any kind whatsoever which may at any time
      (including, without limitation, at any time following the payment of the Notes)
      be imposed on, incurred by or asserted against any such indemnitee in any way
      relating to or arising out of any Credit Document or any documents contemplated
      by or referred to herein or therein or the transactions contemplated hereby
      or
      thereby or any action taken or omitted by any such indemnitee under or in
      connection with any of the foregoing; provided,
      however,
      that no
      Lender shall be liable for the payment of any portion of such liabilities,
      obligations, losses, damages, penalties, actions, judgments, suits, costs,
      expenses or disbursements to the extent resulting from such indemnitee’s gross
      negligence or willful misconduct, as determined by a court of competent
      jurisdiction. The agreements in this Section 8.7 shall survive the termination
      of this Agreement and payment of the Notes and all other amounts payable
      hereunder.

    

    
      	 	
              Section
                8.8

            	
              Administrative
                Agent in Its Individual Capacity.

            

    

    

    The
      Administrative Agent and its affiliates may make loans to, accept deposits
      from
      and generally engage in any kind of business with the Borrower as though the
      Administrative Agent were not the Administrative Agent hereunder. With respect
      to its Loans made or renewed by it and any Note issued to it, the Administrative
      Agent shall have the same rights and powers under this Agreement as any Lender
      and may exercise the same as though it were not the Administrative Agent, and
      the terms “Lender” and “Lenders” shall include the Administrative Agent in its
      individual capacity.

    

    
      
        
          
          

        

        
          107

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              Section
                8.9

            	
              Successor
                Administrative Agent.

            

    

    

    The
      Administrative Agent may resign as Administrative Agent upon thirty (30)
      days’ prior written notice to the Borrower and the Lenders. If the
      Administrative Agent shall resign as Administrative Agent, then the Required
      Lenders shall appoint from among the Lenders (with such Lender’s consent) a
      successor agent for the Lenders, which successor agent shall in the absence
      of a
      Default or an Event of Default be approved by the Borrower (which approval
      shall
      not be unreasonably withheld or delayed), whereupon such successor agent shall
      succeed to the rights, powers and duties of the Administrative Agent, and the
      term “Administrative Agent” shall mean such successor agent effective upon such
      appointment and approval, and the former Administrative Agent’s rights, powers
      and duties as Administrative Agent shall be terminated, without any other or
      further act or deed on the part of such former Administrative Agent or any
      of
      the parties to this Agreement or any holders of the Notes. If no such successor
      shall have been so appointed by the Required Lenders and shall have accepted
      such appointment within thirty (30) days after the retiring Administrative
      Agent gives notice of its resignation, then such resignation shall nonetheless
      become effective in accordance with such notice and (a)
      the
      retiring Administrative Agent shall be discharged from its duties and
      obligations hereunder and under the other Credit Documents (except that in
      the
      case of any Collateral held by the Administrative Agent on behalf of the Secured
      Parties, the retiring Administrative Agent shall continue to hold such
      Collateral until such time as a successor Administrative Agent is appointed)
      and
      (b) all payments, communications and determinations provided to be made by,
      to or through the Administrative Agent shall instead be made by or to (i) each
      Lender and the Issuing Lender directly with respect to payments and
      communications and (ii) the Required Lenders with respect to any determination,
      until such time as the Required Lenders appoint a successor Administrative
      Agent
      as provided for above in this paragraph. After any retiring Administrative
      Agent’s resignation as Administrative Agent, the provisions of this Section 8.9
      shall inure to its benefit as to any actions taken or omitted to be taken by
      it
      while it was Administrative Agent under this Agreement.

    

    
      	 	
              Section
                8.10

            	
              Other
                Agents.

            

    

    

    None
      of
      the Lenders or other Persons identified on the cover page or signature pages
      of
      this Agreement as a “syndication agent,” “documentation agent,” “co-agent,”
“book manager,” “bookrunner,” “joint bookrunner,” “lead manager,” “arranger,”
“lead arranger,” “joint lead arrangers” or “co-arranger” shall have any right
      (except as expressly set forth herein), power, obligation, liability,
      responsibility or duty under this Agreement or under any other Credit Document
      other than, in the case of such Lenders, those applicable to all Lenders as
      such; provided,
      however,
      that
      the agents and co-lead arrangers shall be entitled to the same rights,
      protections, exculpations and indemnifications granted to the Administrative
      Agent under this Article VIII in their capacity as an agent or co-lead
      arranger. Without limiting the foregoing, none of the Lenders or other Persons
      so identified shall have or be deemed to have any fiduciary relationship with
      any Lender. Each Lender acknowledges that it has not relied, and will not rely,
      on any of the Lenders or other Persons so identified in deciding to enter into
      this Credit Agreement or in taking or not taking action hereunder.

    

    
      	 	
              Section
                8.11

            	
              Releases.

            

    

    

    The
      Administrative Agent will promptly release any Guarantor and any Lien on any
      Collateral, which is sold, transferred or otherwise disposed of as permitted
      by
      the Credit Agreement or as otherwise permitted by the Lenders or Required
      Lenders, as applicable.

    

    
      
        
          
          

        

        
          108

          
            

          

        

        
          
          

        

      

    

    

    ARTICLE
      IX

    

    MISCELLANEOUS

    

    
      	 	
              Section
                9.1

            	
              Amendments,
                Waivers and Release of Collateral.

            

    

    

    Neither
      this Agreement, nor any of the other Credit Documents, nor any terms hereof
      or
      thereof may be amended, supplemented, waived or modified except in accordance
      with the provisions of this Section. The Required Lenders may, or, with the
      written consent of the Required Lenders, the Administrative Agent may, from
      time
      to time, (a) enter into with the Credit Parties written amendments,
      supplements or modifications hereto and/or to the other Credit Documents for
      the
      purpose of adding, deleting or modifying any provisions to this Agreement or
      the
      other Credit Documents or changing in any manner the rights or obligations
      of
      the Lenders or of the Credit Parties hereunder or thereunder or (b) waive,
      on
      such terms and conditions as the Required Lenders may specify in such
      instrument, any of the requirements of this Agreement or the other Credit
      Documents or any Default or Event of Default and its consequences; provided,
      however,
      that no
      such waiver and no such amendment, waiver, supplement, modification or release
      shall:

    

    (i)    
reduce
      the amount or extend the scheduled date of maturity of any Loan, Note or LOC
      Obligation or any installment thereon, or reduce the stated rate of any interest
      or fee payable hereunder (except in connection with a waiver of interest at
      the
      increased post-default rate set forth in Section 2.9 which shall be determined
      by a vote of the Required Lenders) or extend the scheduled date of any payment
      thereof or increase the amount or extend the expiration date of any Lender’s
      Commitment, in each case without the written consent of each Lender directly
      affected thereby; provided
      that, it
      is understood and agreed that (A) no waiver, reduction or deferral of a
      mandatory prepayment required pursuant to Section 2.7(b), nor any amendment
      of
      Section 2.7(b) or the definitions of Asset Disposition, Debt Issuance, Equity
      Issuance, Excess Cash Flow or Recovery Event, shall
      constitute a reduction of the amount of, or an extension of the scheduled date
      of maturity of, or any installment of, any Loan, Note or LOC Obligation, (B)
      any
      reduction in the stated rate of interest on Revolving Loans shall only require
      the written consent of each Lender holding a Revolving Commitment and (C) any
      reduction in the stated rate of interest on the Term Loan shall only require
      the
      written consent of each Lender holding a portion of the outstanding Term Loan;
      or 

    

    (ii)    amend,
      modify or waive any provision of this Section or reduce the percentage specified
      in the definition of Required Lenders, without the written consent of all the
      Lenders; or 

    

    (iii)   amend,
      modify or waive any provision of Article VIII without the written consent of
      the
      then Administrative Agent; or

    

    
      
        
          
          

        

        
          109

          
            

          

        

        
          
          

        

      

    

    

    (iv)   release
      the Borrower or all or substantially all of the Guarantors from obligations
      under the Guaranty, without the written consent of all of the Lenders and the
      Hedging Agreement Providers; or

    

    (v)    release
      all or substantially all of the Collateral without the written consent of all
      of
      the Lenders and Hedging Agreement Providers; or 

    

    (vi)   subordinate
      any Credit Party Obligations to any other Indebtedness or the Liens securing
      the
      Credit Party Obligations to any other Indebtedness without the written consent
      of all of the Lenders; or

    

    (vii)  
        permit
      a
      Letter of Credit to have an original expiry date more than twelve (12) months
      from the date of issuance without the consent of each of the Revolving Lenders;
      provided,
      that
      the expiry date of any Letter of Credit may be extended in accordance with
      the
      terms of Section 2.3(a); or

    

    (viii)  
        permit
      any Credit Party to assign or transfer any of its rights or obligations under
      this Agreement or other Credit Documents without the written consent of all
      of
      the Lenders; or

    

    (ix)   amend
      or
      modify the definition of Credit Party Obligations to delete or exclude any
      obligation or liability described therein without the written consent of each
      Lender and each Hedging Agreement Provider directly affected thereby;
      or

    

    (x)    amend,
      modify or waive any provision of the Credit Documents requiring consent,
      approval or request of the Required Lenders or all Lenders without the written
      consent of the Required Lenders or all the Lenders as appropriate;
      or

    

    (xi)   without
      the consent of Revolving Lenders holding in the aggregate more than 50% of
      the
      outstanding Revolving Commitments (or if the Revolving Commitments have been
      terminated, the aggregate principal amount of outstanding Revolving Loans),
      amend, modify or waive any provision in Section 4.2 or waive any Default or
      Event of Default (or amend any Credit Document to effectively waive any Default
      or Event of Default) if the effect of such amendment, modification or waiver
      is
      that the Revolving Lenders shall be required to fund Revolving Loans when such
      Lenders would otherwise not be required to do so; or

    

    (xii)      amend,
      modify or waive the order in which Credit Party Obligations are paid or in
      a
      manner that would alter the pro rata sharing of payments by and among the
      Lenders, including, without limitation, as provided in Section 2.12,
      without the written consent of each Lender and each Hedging Agreement Provider
      directly affected thereby; or

    

    
      
        
          
          

        

        
          110

          
            

          

        

        
          
          

        

      

    

    

    (xiii) 
        amend
      the
      definitions of “Hedging Agreement,” “Secured Hedging Agreement,” or “Hedging
      Agreement Provider” without the consent of any Hedging Agreement Provider that
      would be adversely affected thereby.

    

    provided,
      further,
      that no
      amendment, waiver or consent affecting the rights or duties of the
      Administrative Agent, the Issuing Lender or the Swingline Lender under any
      Credit Document shall in any event be effective, unless in writing and signed
      by
      the Administrative Agent, the Issuing Lender and/or the Swingline Lender, as
      applicable, in addition to the Lenders required hereinabove to take such action.
      

    

    Any
      such
      waiver, any such amendment, supplement or modification and any such release
      shall apply equally to each of the Lenders and shall be binding upon the
      Borrower, the other Credit Parties, the Lenders, the Administrative Agent and
      all future holders of the Notes. In the case of any waiver, the Borrower, the
      other Credit Parties, the Lenders and the Administrative Agent shall be restored
      to their former position and rights hereunder and under the outstanding Loans
      and Notes and other Credit Documents, and any Default or Event of Default
      permanently waived shall be deemed to be cured and not continuing; but no such
      waiver shall extend to any subsequent or other Default or Event of Default,
      or
      impair any right consequent thereon. 

    

    Notwithstanding
      any of the foregoing to the contrary, the consent of the Borrower shall not
      be
      required for any amendment, modification or waiver of the provisions of Article
      VIII (other than the provisions of Section 8.9); provided,
      however,
      that
      the Administrative Agent will provide written notice to the Borrower of any
      such
      amendment, modification or waiver. 

    

    Notwithstanding
      the fact that the consent of all the Lenders is required in certain
      circumstances as set forth above, (x) each Lender is entitled to vote as such
      Lender sees fit on any bankruptcy reorganization plan that affects the Loans,
      and each Lender acknowledges that the provisions of Section 1126(c) of the
      Bankruptcy Code supersedes the unanimous consent provisions set forth herein
      and
      (y) the Required Lenders may consent to allow a Credit Party to use cash
      collateral in the context of a bankruptcy or insolvency proceeding.

    

    
      	 	
              Section
                9.2

            	
              Notices.

            

    

    

    Except
      as
      otherwise provided in Article II, all notices, requests and demands to or upon
      the respective parties hereto to be effective shall be in writing (including
      by
      telecopy or other electronic communication with confirmed receipt from the
      recipient), and, unless otherwise expressly provided herein, shall be deemed
      to
      have been duly given or made (a) when delivered by hand, (b) when
      transmitted via telecopy (or other electronic communication device with
      confirmed receipt from the recipient) to the number set out herein, (c) the
      day
      following the day on which the same has been delivered prepaid (or pursuant
      to
      an invoice arrangement) to a reputable national overnight air courier service,
      or (d) the third Business Day following the day on which the same is sent by
      certified or registered mail, postage prepaid, in each case, addressed as
      follows in the case of the Borrower, the other Credit Parties and the
      Administrative Agent, and, in the case of each of the Lenders, as set forth
      in
      such Lender’s Administrative Details Form, or to such other address as may be
      hereafter notified by the respective parties hereto and any future holders
      of
      the Notes:

    

    
      
        
          
          

        

        
          111

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              The
                Borrower

            	
              Orthofix
                Holdings, Inc.

            

    

    
      	 	
              and
                the other

            	
              The
                Storrs Building, Suite 250

            

    

    
      	 	
              Credit
                Parties:

            	
              10115
                Kincey Avenue

            

    

    Huntersville
      Business Park

    Huntersville,
      North Carolina 28078

    Attention:
       Thomas
      Hein

    Telecopier:
       704
      948
      2691

    Telephone:
       704
      948
      2635

    

    
      	 	
              The
                Administrative

            	
              Wachovia
                Bank, National Association, as Administrative
                Agent

            

    

    
      	 	
              Agent:

            	
              Charlotte
                Plaza

            

    

    201
      South
      College Street

    NC0680/CP8

    Charlotte,
      North Carolina 28288-0680

    Attention:
       Syndication
      Agency Services

    Telecopier:
       (704)
      715-1125

    Telephone:
       (704)
      383-0288

    

    with
      a
      copy to:

    

    Wachovia
      Bank, National Association

    One
      Wachovia Center

    301
      South
      College Street, TW 15

    NC5562

    Charlotte,
      North Carolina 28288-0737

    Attention:
       Scott
      Santa Cruz

    Telecopier:
       (704)
      383-7611

    Telephone:
       (704)
      383-1988

    

    
      	 	
              Section
                9.3

            	
              No
                Waiver; Cumulative Remedies.

            

    

    

    No
      failure to exercise and no delay in exercising, on the part of the
      Administrative Agent or any Lender, any right, remedy, power or privilege
      hereunder shall operate as a waiver thereof; nor shall any single or partial
      exercise of any right, remedy, power or privilege hereunder preclude any other
      or further exercise thereof or the exercise of any other right, remedy, power
      or
      privilege. The rights, remedies, powers and privileges herein provided are
      cumulative and not exclusive of any rights, remedies, powers and privileges
      provided by law.

    

    
      	 	
              Section
                9.4

            	
              Survival
                of Representations and Warranties.

            

    

    

    All
      representations and warranties made hereunder and in any document, certificate
      or statement delivered pursuant hereto or in connection herewith shall survive
      the execution and delivery of this Agreement and the Notes and the making of
      the
      Loans; provided
      that all
      such representations and warranties shall terminate on the date upon which
      the
      Commitments have been terminated, no Credit Document remains in effect and
      all
      Credit Party Obligations have been paid in full.

    

    
      
        
          
          

        

        
          112

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              Section
                9.5

            	
              Payment
                of Expenses and Taxes.

            

    

    

    The
      Borrower agrees (a) to pay or reimburse the Administrative Agent and the
      Arranger for all their reasonable out-of-pocket costs and expenses incurred
      in
      connection with the development, preparation, negotiation, printing and
      execution of, and any amendment, supplement or modification to, this Agreement
      and the other Credit Documents and any other documents prepared in connection
      herewith or therewith (including, without limitation, all CUSIP fees for
      registration with S&P’s CUSIP Service Bureau, together with the reasonable
      fees and disbursements of counsel to the Administrative Agent and the Arranger,
      (b) to pay or reimburse the Administrative Agent and, if an Event of
      Default shall have occurred and is continuing, each Lender for all its costs
      and
      expenses incurred in connection with the enforcement or preservation of any
      rights under this Agreement and the other Credit Documents, including, without
      limitation, the reasonable fees and disbursements of counsel to the
      Administrative Agent, and if applicable, and to the Lenders (including
      reasonable allocated costs of in-house legal counsel), (c) on demand, to
      pay, indemnify, and hold each Lender, the Administrative Agent and the Arranger
      harmless from, any and all recording and filing fees and any and all liabilities
      with respect to, or resulting from any delay in paying, stamp, excise and other
      similar taxes, if any, which may be payable or determined to be payable in
      connection with the execution and delivery of, or consummation or administration
      of any of the transactions contemplated by, or any amendment, supplement or
      modification of, or any waiver or consent under or in respect of, the Credit
      Documents and any such other documents; except for any and all stamp, excise
      and
      other similar taxes payable in connection with any transfer under Section 9.6
      of
      this Agreement, (d) to pay, indemnify, and hold each Lender, the
      Administrative Agent, the Arranger and their Affiliates and their respective
      officers, directors, employees, partners, members, counsel, agents,
      representatives, advisors and affiliates (collectively called the “Indemnitees”)
      harmless from and against, any and all other liabilities, obligations, losses,
      damages, penalties, actions, judgments, suits, costs, expenses or disbursements
      of any kind or nature whatsoever with respect to the execution, delivery,
      enforcement, performance and administration of the Credit Documents and any
      such
      other documents and the use, or proposed use, of proceeds of the Loans and
      (e) to pay any civil penalty or fine assessed by the U.S. Department of the
      Treasury’s Office of Foreign Assets Control against, and all reasonable costs
      and expenses (including counsel fees and disbursements) incurred in connection
      with defense thereof by the Administrative Agent or any Lender as a result
      of
      the funding of Loans, the issuance of Letters of Credit, the acceptance of
      payments or of Collateral due under the Credit Documents (all of the foregoing,
      collectively, the “Indemnified
      Liabilities”);
      provided,
      however,
      that
      the Borrower shall not have any obligation hereunder to an Indemnitee with
      respect to Indemnified Liabilities arising from the gross negligence or willful
      misconduct of such Indemnitee, as determined by a court of competent
      jurisdiction pursuant to a final non-appealable judgment. The agreements in
      this
      Section shall survive repayment of the Loans, Notes and all other amounts
      hereunder.

    

    
      
        
          
          

        

        
          113

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              Section
                9.6

            	
              Successors
                and Assigns; Participations; Purchasing Lenders.

            

    

    

    (a)    This
      Agreement shall be binding upon and inure to the benefit of the Credit Parties,
      the Lenders, the Administrative Agent, all future holders of the Notes and
      their
      respective successors and assigns, except that the Credit Parties may not assign
      or transfer any of their rights or obligations under this Agreement or the
      other
      Credit Documents without the prior written consent of each Lender.

    

    (b)    Any
      Lender may, in the ordinary course of its business and in accordance with
      applicable law, at any time sell to one or more banks or other entities
      (“Participants”)
      participating interests in any Loan owing to such Lender, any Note held by
      such
      Lender, any Commitment of such Lender, or any other interest of such Lender
      hereunder. In the event of any such sale by a Lender of participating interests
      to a Participant, such Lender’s obligations under this Agreement to the other
      parties to this Agreement shall remain unchanged, such Lender shall remain
      solely responsible for the performance thereof, such Lender shall remain the
      holder of any such Note for all purposes under this Agreement, and the Borrower
      and the Administrative Agent shall continue to deal solely and directly with
      such Lender in connection with such Lender’s rights and obligations under this
      Agreement. No Lender shall transfer or grant any participation under which
      the
      Participant shall have rights to approve any amendment to, or supplement,
      modification or waiver of, this Agreement or any other Credit Document except
      to
      the extent such amendment, supplement, modification or waiver would
      (i) extend the scheduled maturity of any Loan or Note or any installment
      thereon in which such Participant is participating, or reduce the stated rate
      or
      extend the time of payment of interest or fees thereon (except in connection
      with a waiver of interest at the increased post-default rate set forth in
      Section 2.9 which shall be determined by a vote of the Required Lenders) or
      reduce the principal amount thereof, or increase the amount of the Participant’s
      participation over the amount thereof then in effect; provided
      that, it
      is understood and agreed that (A) any waiver, reduction or deferral of a
      mandatory prepayment required pursuant to Section 2.7(b) and any amendment
      of
      Section 2.7(b) or the definitions of Asset Disposition, Debt Issuance, Equity
      Issuance, or
      Recovery Event, (B) any waiver of any Default or Event of Default and (C) any
      increase in any Commitment or Loan shall be permitted without consent of any
      participant if the Participant’s participation is not increased as a result
      thereof, (ii) release all or substantially all of the Guarantors from their
      obligations under the Guaranty, (iii) release
      all or substantially all of the Collateral, or
      (iv) consent
      to the assignment or transfer by the Borrower of any of its rights and
      obligations under this Agreement. In the case of any such participation, the
      Participant shall not have any rights under this Agreement or any of the other
      Credit Documents (the Participant’s rights against such Lender in respect of
      such participation to be those set forth in the agreement executed by such
      Lender in favor of the Participant relating thereto) and all amounts payable
      by
      the Borrower hereunder shall be determined as if such Lender had not sold such
      participation; provided
      that
      each Participant shall be entitled to the benefits of Sections 2.14, 2.15,
      2.16,
      2.17 and 9.5 with respect to its participation in the Commitments and the Loans
      outstanding from time to time; provided further,
      that no
      Participant shall be entitled to receive any greater amount pursuant to such
      Sections than the transferor Lender would have been entitled to receive in
      respect of the amount of the participation transferred by such transferor Lender
      to such Participant had no such transfer occurred.

    

    
      
        
          
          

        

        
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    (c)    Any
      Lender may, in accordance with applicable law, at any time, sell or assign
      to
      any Lender or any Affiliate or Approved Fund thereof and to one or more
      additional banks, insurance companies, financial institutions, investment funds
      or other entities (“Purchasing
      Lenders”),
      all
      or any part of its rights and obligations under this Agreement and the Notes
      in
      minimum amounts of (i) $1,000,000 (or such lesser amount approved by the
      Administrative Agent and, so long as no Default or Event of Default shall have
      occurred and be continuing, the Borrower) with respect to its Revolving
      Commitment and its Revolving Loans (or, if less, the entire amount of such
      Lender’s Revolving Commitment and Revolving Loans) and (ii) $1,000,000 (or
      such lesser amount approved by the Administrative Agent and so long as no
      Default or Event of Default shall have occurred and be continuing, the Borrower)
      with respect to its Term Loans (or, if less, the entire amount of such Lender’s
      Term Loans), pursuant to an Assignment Agreement, executed by such Purchasing
      Lender and such transferor Lender, consented to (such consent not to be
      unreasonably withheld or delayed) by the Administrative Agent, the Issuing
      Lender and the Borrower (to the extent required), and delivered to the
      Administrative Agent for its acceptance and recording in the Register;
provided,
      however,
      that
      (A) any sale or assignment to an existing Lender, or Affiliate or Approved
      Fund thereof, shall not require the consent of the Borrower, the Issuing Lender
      or the Administrative Agent (but shall be accepted and acknowledged by the
      Administrative Agent for the sole purpose of recording same in the Register)
      nor
      shall any such sale or assignment be subject to the minimum assignment amounts
      specified herein, (B) so long as no Default or Event of Default shall have
      occurred and be continuing, except as provided in the foregoing clause (A),
      any
      sale or assignment of a portion of the Revolving Loans and a Revolving Loan
      Commitment shall require the consent of the Borrower (such
      consent not to be unreasonably withheld), (C) except as provided in the
      foregoing clause (ii), any sale or assignment of a portion of the Term Loan
      and
      a Term Loan Commitment shall not require the consent of the Borrower and (D)
      contemporaneous sales and/or assignments to a Purchasing Lender and its
      Affiliates and Approved Funds shall be treated as one assignment for purposes
      of
      determining compliance with the minimum assignment amounts specified herein.
      Upon such execution, delivery, acceptance and recording, from and after the
      Transfer Effective Date specified in such Assignment Agreement, (1) the
      Purchasing Lender thereunder shall be a party hereto and, to the extent provided
      in such Assignment Agreement, have the rights and obligations of a Lender
      hereunder with a Commitment as set forth therein, and (2) the transferor
      Lender thereunder shall, to the extent provided in such Assignment Agreement,
      be
      released from its obligations under this Agreement (and, in the case of an
      Assignment Agreement covering all or the remaining portion of a transferor
      Lender’s rights and obligations under this Agreement, such transferor Lender
      shall cease to be a party hereto; provided,
      however,
      that
      such Lender shall continue to be entitled to any indemnification rights that
      expressly survive hereunder). Such Assignment Agreement shall be deemed to
      amend
      this Agreement to the extent, and only to the extent, necessary to reflect
      the
      addition of such Purchasing Lender and the resulting adjustment of Commitment
      Percentages arising from the purchase by such Purchasing Lender of all or a
      portion of the rights and obligations of such transferor Lender under this
      Agreement and the Notes. On or prior to the Transfer Effective Date specified
      in
      such Assignment Agreement, the Borrower, at its own expense, shall execute
      and
      deliver to the Administrative Agent in exchange for the Notes delivered to
      the
      Administrative Agent pursuant to such Assignment Agreement new Notes to the
      order of such Purchasing Lender in an amount equal to the Commitment assumed
      by
      it pursuant to such Assignment Agreement and, unless the transferor Lender
      has
      not retained a Commitment hereunder, new Notes to the order of the transferor
      Lender in an amount equal to the Commitment retained by it hereunder. Such
      new
      Notes shall be in the form of the Notes replaced thereby. Notwithstanding
      anything to the contrary contained in this Section, a Lender may assign any
      or
      all of its rights under this Agreement to an Affiliate or a Approved Fund of
      such Lender without delivering an Assignment Agreement to the Administrative
      Agent; provided,
      however,
      that
      (x) the Credit Parties and the Administrative Agent may continue to deal solely
      and directly with such assigning Lender until an Assignment Agreement has been
      delivered to the Administrative Agent for recordation on the Register, (y)
      the
      failure of such assigning Lender to deliver an Assignment Agreement to the
      Administrative Agent shall not affect the legality, validity or binding effect
      of such assignment and (z) an Assignment Agreement between the assigning Lender
      and an Affiliate or Approved Fund of such Lender shall be effective as of the
      date specified in such Assignment Agreement.

    

    
      
        
          
          

        

        
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    (d)    The
      Administrative Agent shall maintain at its address referred to in
      Section 9.2 a copy of each Assignment Agreement delivered to it and a
      register (the “Register”)
      for
      the recordation of the names and addresses of the Lenders and the Commitment
      of,
      and principal amount of the Loans owing to, each Lender from time to time.
      Subject to the requirements of Section 9.6(c), a Loan (and the related Note)
      recorded on the Register may be assigned or sold in whole or in part upon
      registration of such assignment or sale on the Register. The entries in the
      Register shall be conclusive, in the absence of manifest error, and the
      Borrower, the Administrative Agent and the Lenders may treat each Person whose
      name is recorded in the Register as the owner of the Loan recorded therein
      for
      all purposes of this Agreement. The Register shall be available for inspection
      by the Borrower or any Lender at any reasonable time and from time to time
      upon
      reasonable prior notice. In the case of an assignment pursuant to the last
      sentence of Section 9.6(c) as to which an Assignment Agreement is not delivered
      to the Administrative Agent, the assigning Lender shall, acting solely for
      this
      purpose as a non-fiduciary agent of the Credit Parties, maintain a comparable
      register on behalf of the Credit Parties. In the event that any Lender sells
      participations in a Loan recorded on the Register, such Lender shall maintain
      a
      register on which it enters the name of all participants in such Loans held
      by
      it (the “Participant
      Register”).
      A
      Loan recorded on the Register (and the registered Note, if any, evidencing
      the
      same) may be participated in whole or in part only by registration of such
      participation on the Participant Register (and each registered Note shall
      expressly so provide). Any participation of such Loan recorded on the Register
      (and the registered Note, if any, evidencing the same) may be effected only
      by
      the registration of such participation on the Participant Register.

    

    
      
        
          
          

        

        
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    (e)    Upon
      its
      receipt of a duly executed Assignment Agreement, together with payment to the
      Administrative Agent by the transferor Lender or the Purchasing Lender, as
      agreed between them, of a registration and processing fee of $3,500 for each
      Purchasing Lender (other than a Purchasing Lender that is an Affiliate or
      Approved Fund of the transferor Lender) listed in such Assignment Agreement
      and
      the Notes subject to such Assignment Agreement, the Administrative Agent shall
      (i) accept such Assignment Agreement, (ii) record the information
      contained therein in the Register and (iii) give
      prompt notice of such acceptance and recordation to the Lenders and the
      Borrower.

    

    (f)    
The
      Borrower authorizes each Lender to disclose to any Participant or Purchasing
      Lender (each, a “Transferee”)
      and
      any prospective Transferee any and all financial information in such Lender’s
      possession concerning the Borrower and its Subsidiaries which has been delivered
      to such Lender by or on behalf of the Borrower pursuant to this Agreement or
      which has been delivered to such Lender by or on behalf of the Borrower in
      connection with such Lender’s credit evaluation of the Borrower and its
      Affiliates prior to becoming a party to this Agreement, in each case subject
      to
      Section 9.15.

    

    (g)    At
      the
      time of each assignment pursuant to this Section to a Person which is not
      already a Lender hereunder and which is not a United States person (as such
      term is defined in Section 7701(a)(30) of the Code) for Federal income tax
      purposes, the respective assignee Lender shall provide to the Borrower and
      the
      Administrative Agent the appropriate Internal Revenue Service Forms described
      in
      Section 2.18.

    

    (h)    Nothing
      herein shall prohibit any Lender from pledging or assigning any of its rights
      under this Agreement (including, without limitation, any right to payment of
      principal and interest under any Note) to secure obligations of such Lender,
      including without limitation, (i) any pledge or assignment to secure
      obligations to a Federal Reserve Bank and (ii) in the case of any Lender
      that is a fund or trust or entity that invests in commercial bank loans in
      the
      ordinary course of business, any pledge or assignment to any holders of
      obligations owed, or securities issued, by such Lender including to any trustee
      for, or any other representative of, such holders; it being understood that
      the
      requirements for assignments set forth in this Section shall not apply to any
      such pledge or assignment of a security interest, except with respect to any
      foreclosure or similar action taken by such pledgee or assignee with respect
      to
      such pledge or assignment; provided
      that no
      such pledge or assignment of a security interest shall release a Lender from
      any
      of its obligations hereunder or substitute any such pledgee or assignee for
      such
      Lender as a party hereto and no such pledgee or assignee shall have any voting
      rights under this Agreement unless and until the requirements for assignments
      set forth in this Section are complied with in connection with any foreclosure
      or similar action taken by such pledgee or assignee.

    

    
      
        
          
          

        

        
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              Section
                9.7

            	
              Adjustments;
                Set-off.

            

    

    

    (a)    Each
      Lender agrees that if any Lender (a “benefited
      Lender”)
      shall
      at any time receive any payment of all or part of its Loans, or interest
      thereon, or receive any collateral in respect thereof (whether voluntarily
      or
      involuntarily, by set-off, pursuant to events or proceedings of the nature
      referred to in Section 7.1(e), or otherwise) in a greater proportion than any
      such payment to or collateral received by any other Lender, if any, in respect
      of such other Lender’s Loans, or interest thereon, such benefited Lender shall
      purchase for cash from the other Lenders a participating interest in such
      portion of each such other Lender’s Loan, or shall provide such other Lenders
      with the benefits of any such collateral, or the proceeds thereof, as shall
      be
      necessary to cause such benefited Lender to share the excess payment or benefits
      of such collateral or proceeds ratably with each of the Lenders; provided,
      however,
      that if
      all or any portion of such excess payment or benefits is thereafter recovered
      from such benefited Lender, such purchase shall be rescinded, and the purchase
      price and benefits returned, to the extent of such recovery, but without
      interest. The Borrower agrees that each Lender so purchasing a portion of
      another Lender’s Loans may exercise all rights of payment (including, without
      limitation, rights of set-off) with respect to such portion as fully as if
      such
      Lender were the direct holder of such portion.

    

    (b)    In
      addition to any rights and remedies of the Lenders provided by law (including,
      without limitation, other rights of set-off), each Lender (and its Affiliates)
      shall have the right, without prior notice to the Borrower, any such notice
      being expressly waived by the Borrower to the extent permitted by applicable
      law, in the event that all amounts under the Credit Agreement shall have become
      immediately due and payable pursuant to Section 7.2, to setoff and appropriate
      and apply any and all deposits (general or special, time or demand, provisional
      or final), in any currency, and any other credits, indebtedness or claims,
      in
      any currency, in each case whether direct or indirect, absolute or contingent,
      matured or unmatured, at any time held by or owing to such Lender (and its
      Affiliates) or any branch or agency thereof to or for the credit or the account
      of the Borrower or any other Credit Party, or any part thereof in such amounts
      as such Lender (and its Affiliates) may elect, against and on account of the
      Loans and other Credit Party Obligations of the Borrower and the other Credit
      Parties and claims of every nature and description of such Lender against the
      Borrower and the other Credit Parties, in any currency, whether arising
      hereunder, under any other Credit Document or any Secured Hedging Agreement
      provided pursuant to the terms of this Agreement, as such Lender may elect,
      whether or not such Lender or any other Lender has made any demand for payment
      and although such obligations, liabilities and claims may be contingent or
      unmatured. The aforesaid right of set-off may be exercised by such Lender (and
      its Affiliates) against the Borrower, any other Credit Party or against any
      trustee in bankruptcy, debtor in possession, assignee for the benefit of
      creditors, receiver or execution, judgment or attachment creditor of the
      Borrower or any other Credit Party, or against anyone else claiming through
      or
      against the Borrower, any other Credit Party or any such trustee in bankruptcy,
      debtor in possession, assignee for the benefit of creditors, receiver, or
      execution, judgment or attachment creditor, notwithstanding the fact that such
      right of set-off shall not have been exercised by such Lender (or its
      Affiliates) prior to the occurrence of any Event of Default. Each Lender agrees
      promptly to notify the Borrower and the Administrative Agent after any such
      set-off and application made by such Lender (and its Affiliates); provided,
      however,
      that
      the failure to give such notice shall not affect the validity of such set-off
      and application.

    

    
      
        
          
          

        

        
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              Section
                9.8

            	
              Table
                of Contents and Section Headings.

            

    

    

    The
      table
      of contents and the Section and subsection headings herein are intended for
      convenience only and shall be ignored in construing this Agreement.

    

    
      	 	
              Section
                9.9

            	
              Counterparts.

            

    

    

    This
      Agreement may be executed by one or more of the parties to this Agreement on
      any
      number of separate counterparts, and all of said counterparts taken together
      shall be deemed to constitute one and the same agreement. Delivery of an
      executed counterpart of a signature page of this Agreement by telecopy or email
      shall be effective as delivery of a manually executed counterpart of this
      Agreement and shall constitute a representation that an original executed
      counterpart will follow.

    

    
      	 	
              Section
                9.10

            	
              Effectiveness.

            

    

    

    This
      Credit Agreement shall become effective on the date on which all of the parties
      have signed a copy hereof (whether the same or different copies) and shall
      have
      delivered the same to the Administrative Agent pursuant to Section 9.2 or,
      in
      the case of the Lenders, shall have given to the Administrative Agent written,
      telecopied or other electronic notice with confirmed receipt from the recipient
      at such office that the same has been signed and mailed to it.

    

    
      	 	
              Section
                9.11

            	
              Severability.

            

    

    

    Any
      provision of this Agreement that is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining
      provisions hereof, and any such prohibition or unenforceability in any
      jurisdiction shall not invalidate or render unenforceable such provision in
      any
      other jurisdiction.

    

    
      	 	
              Section
                9.12

            	
              Integration.

            

    

    

    This
      Agreement and the other Credit Documents represent the agreement of the
      Borrower, the Administrative Agent and the Lenders with respect to the subject
      matter hereof, and there are no promises, undertakings, representations or
      warranties by the Administrative Agent, the Borrower or any Lender relative
      to
      the subject matter hereof not expressly set forth or referred to herein or
      in
      the other Credit Documents or Fee Letters.

    

    
      	 	
              Section
                9.13

            	
              Governing
                Law.

            

    

    

    This
      Agreement and the other Credit Documents (other than the UK Security Documents)
      and the rights and obligations of the parties under this Agreement and the
      other
      Credit Documents (other than the UK Security Documents) shall be governed by,
      and construed and interpreted in accordance with, the law of the State of New
      York.

    

    
      
        
          
          

        

        
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              Section
                9.14

            	
              Consent
                to Jurisdiction and Service of Process.

            

    

    

    All
      judicial proceedings brought against any party hereto with respect to this
      Agreement, any Note or any of the other Credit Documents may be brought in
      any
      state or federal court of competent jurisdiction in the State of New York,
      and,
      by execution and delivery of this Agreement, each of such parties accepts,
      for
      itself and in connection with its properties, generally and unconditionally,
      the
      non-exclusive jurisdiction of the aforesaid courts and irrevocably agrees to
      be
      bound by any final judgment rendered thereby in connection with this Agreement,
      any Note or any other Credit Document from which no appeal has been taken or
      is
      available. The parties hereto irrevocably agree that all service of process
      in
      any such proceedings in any such court may be effected by mailing a copy thereof
      by registered or certified mail (or any substantially similar form of mail),
      postage prepaid, to it at its address set forth in Section 9.2 or at such other
      address of which the Administrative Agent or the Borrower shall have been
      notified pursuant thereto, such service being hereby acknowledged by the parties
      hereto to be effective and binding service in every respect. Each of the parties
      hereto irrevocably waives any objection, including, without limitation, any
      objection to the laying of venue based on the grounds of forum non conveniens
      which it may now or hereafter have to the bringing of any such action or
      proceeding in any such jurisdiction. Nothing herein shall affect the right
      to
      serve process in any other manner permitted by law or shall limit the right
      of
      any party to bring proceedings against any other party in the court of any
      other
      jurisdiction.

    

    
      	 	
              Section
                9.15

            	
              Confidentiality.

            

    

    

    Each
      of
      the Administrative Agent, the Lenders and the Issuing Bank agrees to maintain
      the confidentiality of the Information (as defined below), except that
      Information may be disclosed (a)
      to its
      Affiliates and to its and its Affiliates’ respective partners, directors,
      officers, employees, agents, advisors and other representatives (it being
      understood and agreed that the Persons to whom such disclosure is made will
      be
      informed of the confidential nature of such Information and instructed to keep
      such Information confidential), (b)
      to the
      extent requested by any regulatory authority purporting to have jurisdiction
      over it (including any self-regulatory authority, such as the National
      Association of Insurance Commissioners), (c)
      to the
      extent required by applicable laws or regulations or by any subpoena or similar
      legal process, (d)
      to any
      other party hereto, (e)
      in
      connection with the exercise of any remedies hereunder or under any other Credit
      Document or any action or proceeding relating to this Agreement or any other
      Credit Document or the enforcement of rights hereunder or thereunder,
      (f)
      subject
      to an agreement containing provisions substantially the same as those of this
      Section, to (i)
      any
      assignee of or Participant in, or any prospective assignee of or Participant
      in,
      any of its rights or obligations under this Agreement,
      (ii)
      any
      actual or prospective counterparty (or its advisors) to any swap or derivative
      transaction relating to the Borrower and its obligations, (iii)
      to an
      investor or prospective investor in an Approved Fund
      that
      also agrees that Information shall be used solely for the purpose of evaluating
      an investment in such Approved Fund, (iv)
      to a
      trustee, collateral manager, servicer, backup servicer, noteholder or secured
      party in an Approved Fund in connection with the administration, servicing
      and
      reporting on the assets serving as collateral for an Approved Fund,
      or
      (v)
      to a
      nationally recognized rating agency that requires access to information
      regarding the Credit Parties, the Loans and Credit Documents in connection
      with
      ratings issued with respect to an Approved Fund, (g)
      with
      the consent of the Borrower or (h)
      to the
      extent such Information (i)
      becomes
      publicly available other than as a result of a breach of this Section or
      (ii)
      becomes
      available to the Administrative Agent, any Lender, the Issuing Bank or any
      of
      their respective Affiliates on a nonconfidential basis from a source other
      than
      a Credit Party.

    

    
      
        
          
          

        

        
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    For
      purposes of this Section, “Information”
means
      all information received from any Credit Party or any of its Subsidiaries
      relating to any Credit Party or any of its Subsidiaries or any of their
      respective businesses, other than any such information that is available to
      the
      Administrative Agent, any Lender or the Issuing Lender on a nonconfidential
      basis prior to disclosure by any Credit Party or any of its Subsidiaries. Any
      Person required to maintain the confidentiality of Information as provided
      in
      this Section shall be considered to have complied with its obligation to do
      so
      if such Person has exercised the same degree of care to maintain the
      confidentiality of such Information as such Person would accord to its own
      confidential information.

    

    
      	 	
              Section
                9.16

            	
              Acknowledgments.

            

    

    

    The
      Borrower and the other Credit Parties each hereby acknowledges
      that:

    

    (a)    it
      has
      been advised by counsel in the negotiation, execution and delivery of each
      Credit Document;

    

    (b)    neither
      the Administrative Agent nor any Lender has any fiduciary relationship with
      or
      duty to the Borrower or any other Credit Party arising out of or in connection
      with this Agreement and the relationship between Administrative Agent and
      Lenders, on one hand, and the Borrower and the other Credit Parties, on the
      other hand, in connection herewith is solely that of creditor and debtor;
      and

    

    (c)    no
      joint
      venture exists among the Lenders or among the Borrower or the other Credit
      Parties and the Lenders.

    

    
      	 	
              Section
                9.17

            	
              Waivers
                of Jury Trial.

            

    

    

    THE
      BORROWER, THE OTHER CREDIT PARTIES, THE ADMINISTRATIVE AGENT AND THE LENDERS
      HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE, TO THE EXTENT PERMITTED BY
      APPLICABLE LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO
      THIS
      AGREEMENT OR ANY OTHER CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.
Each
      of
      the Borrower, the other Credit Parties, the Administrative Agent and the Lenders
      agree not to assert any claim against any other party to this Agreement or
      any
      their respective directors, officers, employees, attorneys, Affiliates or
      agents, on any theory of liability, for special, indirect, consequential or
      punitive damages arising out of or otherwise relating to any of the transactions
      contemplated herein.

    

    
      
        
          
          

        

        
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              Section
                9.18

            	
              Patriot
                Act Notice. 

            

    

    

    Each
      Lender and the Administrative Agent (for itself and not on behalf of any other
      party) hereby notifies the Borrower that, pursuant to the requirements of the
      USA Patriot Act, Title III of Pub. L. 107-56, signed into law October 26, 2001
      (the “Patriot
      Act”),
      it is
      required to obtain, verify and record information that identifies the Borrower
      and the other Credit Parties, which information includes the name and address
      of
      the Borrower and the other Credit Parties and other information that will allow
      such Lender or the Administrative Agent, as applicable, to identify the Borrower
      and the other Credit Parties in accordance with the Patriot Act.

    

    
      	 	
              Section
                9.19

            	
              Resolution
                of Drafting Ambiguities.

            

    

    

    Each
      Credit Party acknowledges and agrees that it was represented by counsel in
      connection with the execution and delivery of this Agreement and the other
      Credit Documents to which it is a party, that it and its counsel reviewed and
      participated in the preparation and negotiation hereof and thereof and that
      any
      rule of construction to the effect that ambiguities are to be resolved against
      the drafting party shall not be employed in the interpretation hereof or
      thereof.

    

    
      	 	
              Section
                9.20

            	
              Judgment
                Currency; Payments in Dollars.

            

    

    

    If,
      for
      the purposes of obtaining judgment in any court, it is necessary to convert
      a
      sum due hereunder or under any other Credit Document in one currency into
      another currency, the rate of exchange used shall be that at which in accordance
      with normal banking procedures the Administrative Agent could purchase the
      first
      currency with such other currency on the Business Day preceding that on which
      final judgment is given. The obligation of each of the Credit Parties in respect
      of any such sum due from it to the Administrative Agent or any Lender hereunder
      or under the other Credit Documents shall, notwithstanding any judgment in
      a
      currency (the “Judgment
      Currency”)
      other
      than Dollars, be discharged only to the extent that on the Business Day
      following receipt by the Administrative Agent or such Lender of any sum adjudged
      to be so due in the Judgment Currency, the Administrative Agent or such Lender
      may in accordance with normal banking procedures purchase Dollars with the
      Judgment Currency. If the amount of Dollars so purchased is less than the sum
      originally due to the Administrative Agent or such Lender in Dollars, the
      Borrower agrees, as a separate obligation and notwithstanding any such judgment,
      to indemnify the Administrative Agent or such Lender or the Person to whom
      such
      obligation was owing against such loss. If the amount of Dollars so purchased
      is
      greater than the sum originally due to the Administrative Agent or such Lender
      in such currency, the Administrative Agent and the Lenders agree to apply such
      excess to any Credit Party Obligations then due and payable in accordance with
      the terms of Section 2.12. Notwithstanding anything to the contrary in any
      Credit Documents, all payments made by the Credit Parties under the Credit
      Documents shall be made in Dollars.

    

    
      
        
          
          

        

        
          122

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              Section
                9.21

            	
              Arbitration. 

            

    

    

    (a)    Notwithstanding
      the provisions of Section 9.14 to the contrary, upon demand of any party
      hereto, whether made before or within three (3) months after institution of
      any judicial proceeding, any dispute, claim or controversy arising out of,
      connected with or relating to this Agreement and other Credit Documents
      (“Disputes”)
      between or among parties to this Agreement shall be resolved by binding
      arbitration as provided herein. Institution of a judicial proceeding by a party
      does not waive the right of that party to demand arbitration hereunder. Disputes
      may include, without limitation, tort claims, counterclaims, disputes as to
      whether a matter is subject to arbitration, claims brought as class actions,
      claims arising from Credit Documents executed in the future, or claims arising
      out of or connected with the transaction reflected by this Agreement.

    

    Arbitration
      shall be conducted under and governed by the Commercial Arbitration Rules (the
      “Arbitration
      Rules”)
      of the
      American Arbitration Association (the “AAA”)
      and
      Title 9 of the U.S. Code. All arbitration hearings shall be conducted in
      Charlotte, North Carolina. A hearing shall begin within ninety (90) days
      of
      demand for arbitration and all hearings shall be concluded within
      120 days
      of
      demand for arbitration. These time limitations may not be extended unless a
      party shows cause for extension and then no more than a total extension of
      sixty
      (60) days.
      The
      expedited procedures set forth in Rule 51 et seq.
      of the
      Arbitration Rules shall be applicable to claims of less than $1,000,000. All
      applicable statutes of limitation shall apply to any Dispute. A judgment upon
      the award may be entered in any court having jurisdiction. Arbitrators shall
      be
      licensed attorneys selected from the Commercial Financial Dispute Arbitration
      Panel of the AAA. The parties hereto do not waive applicable Federal or state
      substantive law except as provided herein. 

    

    (b)    Notwithstanding
      the preceding binding arbitration provisions, the Administrative Agent, the
      Lenders, the Borrowers and the other Credit Parties agree to preserve, without
      diminution, certain remedies, as set forth below, that the Administrative Agent
      on behalf of the Lenders may employ or exercise freely, independently or in
      connection with an arbitration proceeding or after an arbitration action is
      brought. The Administrative Agent on behalf of the Lenders shall have the right
      to proceed in any court of proper jurisdiction or by self-help to exercise
      or
      prosecute the following remedies, as and if applicable (i) all rights to
      foreclose against any real or personal property or other security by exercising
      a power of sale granted under Credit Documents or under applicable law or by
      judicial foreclosure and sale, including a proceeding to confirm the sale;
      (ii) all rights of self-help including peaceful occupation of real property
      and collection of rents, set-off, and peaceful possession of personal property
      and giving notices to and collecting obligations from account debtors;
      (iii) obtaining provisional or ancillary remedies including injunctive
      relief, sequestration, garnishment, attachment, appointment of receiver and
      filing an involuntary bankruptcy proceeding; and (iv) when applicable, a
      judgment by confession of judgment. Preservation of these remedies does not
      limit the power of an arbitrator to grant similar remedies that may be requested
      by a party in a Dispute. 

    

    (c)    The
      parties hereto agree that they shall not have a remedy of punitive or exemplary
      damages against the other in any Dispute and hereby waive any right or claim
      to
      punitive or exemplary damages they have now or which may arise in the future
      in
      connection with any Dispute whether the Dispute is resolved by arbitration
      or
      judicially. 

    

    
      
        
          
          

        

        
          123

          
            

          

        

        
          
          

        

      

    

    

    (d)    By
      execution and delivery of this Agreement, each of the parties hereto accepts,
      for itself and in connection with its properties, generally and unconditionally,
      the non-exclusive jurisdiction relating to any arbitration proceedings conducted
      under the Arbitration Rules in Charlotte, North Carolina and irrevocably agrees
      to be bound by any final judgment rendered thereby in connection with this
      Agreement from which no appeal has been taken or is available.

     

    ARTICLE
      X

    

    GUARANTY

    

    
      	 	
              Section
                10.1

            	
              The
                Guaranty.

            

    

    

    In
      order
      to induce the Lenders to enter into this Credit Agreement and any Hedging
      Agreement Provider to enter into any Secured Hedging Agreement and to extend
      credit hereunder and thereunder and in recognition of the direct benefits to
      be
      received by the Guarantors from the Extensions of Credit hereunder and any
      Secured Hedging Agreement, each of the Guarantors hereby agrees with the
      Administrative Agent and the Lenders as follows: the Guarantor hereby
      unconditionally and irrevocably jointly and severally guarantees as primary
      obligor and not merely as surety the full and prompt payment when due, whether
      upon maturity, by acceleration or otherwise, of any and all indebtedness of
      the
      Borrower owed to the Administrative Agent, the Lenders and the Hedging Agreement
      Providers. If any or all of the indebtedness becomes due and payable hereunder
      or under any Secured Hedging Agreement, each Guarantor unconditionally promises
      to pay such indebtedness to the Administrative Agent, the Lenders, the Hedging
      Agreement Providers, or their respective order, or demand, together with any
      and
      all reasonable expenses which may be incurred by the Administrative Agent,
      the
      Lenders or the Hedging Agreement Providers in collecting any of the Credit
      Party
      Obligations. The word “indebtedness” is used in this Article X in its most
      comprehensive sense and includes any and all advances, debts, obligations and
      liabilities of the Borrower and the Guarantors, including specifically all
      Credit Party Obligations, arising in connection with this Credit Agreement,
      the
      other Credit Documents or any Secured Hedging Agreement, in each case,
      heretofore, now, or hereafter made, incurred or created, whether voluntarily
      or
      involuntarily, absolute or contingent, liquidated or unliquidated, determined
      or
      undetermined, whether or not such indebtedness is from time to time reduced,
      or
      extinguished and thereafter increased or incurred, whether the Borrower and
      the
      Guarantors may be liable individually or jointly with others, whether or not
      recovery upon such indebtedness may be or hereafter become barred by any statute
      of limitations, and whether or not such indebtedness may be or hereafter become
      otherwise unenforceable. Notwithstanding anything herein or in any other Credit
      Document to the contrary, the Guaranty provided hereunder is a guaranty of
      payment and not of collection.

    

    Notwithstanding
      any provision to the contrary contained herein or in any other of the Credit
      Documents, to the extent the obligations of a Guarantor shall be adjudicated
      to
      be invalid or unenforceable for any reason (including, without limitation,
      because of any applicable law relating to fraudulent conveyances or transfers)
      then the obligations of each such Guarantor hereunder shall be limited to the
      maximum amount that is permissible under applicable law (including, without
      limitation, the Bankruptcy Code or its non-U.S. equivalent).

    

    
      
        
          
          

        

        
          124

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              Section
                10.2

            	
              Bankruptcy.

            

    

    

    Additionally,
      each of the Guarantors unconditionally and irrevocably guarantees jointly and
      severally the payment of any and all Credit Party Obligations of the Borrower
      to
      the Lenders and any Hedging Agreement Provider whether or not due or payable
      by
      the Borrower upon the occurrence of any of the events specified in
      Section 7.1(e) as applicable to the Company, Colgate, Victory, the Borrower
      or any material Subsidiaries of the Borrower, and unconditionally promises
      to
      pay such Credit Party Obligations to the Administrative Agent for the account
      of
      the Lenders and to any such Hedging Agreement Provider, or order, on demand,
      in
      lawful money of the United States. Each of the Borrower and the Guarantors
      further agrees that to the extent that the Borrower or a Guarantor shall make
      a
      payment or a transfer of an interest in any property to the Administrative
      Agent, any Lender or any Hedging Agreement Provider, which payment or transfer
      or any part thereof is subsequently invalidated, declared to be fraudulent
      or
      preferential, or otherwise is avoided, and/or required to be repaid to the
      Borrower or a Guarantor, the estate
      of
      the Borrower or a Guarantor, a trustee, receiver or any other party under any
      bankruptcy law, state or federal law, common law or other applicable law or
      equitable cause, then to the extent of such avoidance or repayment, the
      obligation or part thereof intended to be satisfied shall be revived and
      continued in full force and effect as if said payment had not been
      made.

    

    
      	 	
              Section
                10.3

            	
              Nature
                of Liability.

            

    

    

    The
      liability of each Guarantor hereunder is exclusive and independent of any
      security for or other guaranty of the Credit Party Obligations of the Borrower
      whether executed by any such Guarantor, any other guarantor or by any other
      party, and no Guarantor’s liability hereunder shall be affected or impaired by
      (a) any direction as to application of payment by the Borrower or by any other
      party, or (b) any other continuing or other guaranty, undertaking or maximum
      liability of a guarantor or of any other party as to the Credit Party
      Obligations of the Borrower, or (c) any payment on or in reduction of any such
      other guaranty or undertaking, or (d) any dissolution, termination or increase,
      decrease or change in personnel by the Borrower, or (e) any payment made to
      the
      Administrative Agent, the Lenders or any Hedging Agreement Provider on the
      Credit Party Obligations that the Administrative Agent, such Lenders or such
      Hedging Agreement Provider repay the Borrower pursuant to court order in any
      bankruptcy, reorganization, arrangement, moratorium or other debtor relief
      proceeding, and each of the Guarantors waives any right to the deferral or
      modification of its obligations hereunder by reason of any such
      proceeding.

    

    
      	 	
              Section
                10.4

            	
              Independent
                Obligation.

            

    

    

    The
      obligations of each Guarantor hereunder are independent of the obligations
      of
      any other guarantor or the Borrower, and a separate action or actions may be
      brought and prosecuted against each Guarantor whether or not action is brought
      against any other guarantor or the Borrower and whether or not any other
      Guarantor or the Borrower is joined in any such action or actions.

    

    
      
        
          
          

        

        
          125

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              Section
                10.5

            	
              Authorization.

            

    

    

    Each
      of
      the Guarantors authorizes the Administrative Agent, each Lender and each Hedging
      Agreement Provider without notice or demand (except as shall be required by
      applicable law and cannot be waived), and without affecting or impairing its
      liability hereunder, from time to time to (a) renew, compromise, extend,
      increase, accelerate or otherwise change the time for payment of, or otherwise
      change the terms of the Credit Party Obligations or any part thereof in
      accordance with this Agreement and any Secured Hedging Agreement, as applicable,
      including any increase or decrease of the rate of interest thereon, (b) take
      and
      hold security from any Guarantor or any other party for the payment of this
      Guaranty or the Credit Party Obligations and exchange, enforce, waive and
      release any such security, (c) apply such security and direct the order or
      manner of sale thereof as the Administrative Agent and the Lenders in their
      discretion may determine in accordance with the terms of this Agreement and
      the
      other Credit Documents and (d) release or substitute any one or more endorsers,
      Guarantors, the Borrower or other obligors.

    

    
      	 	
              Section
                10.6

            	
              Reliance.

            

    

    

    It
      is not
      necessary for the Administrative Agent, the Lenders or any Hedging Agreement
      Providers to inquire into the capacity or powers of the Borrower or the
      officers, directors, members, partners or agents acting or purporting to act
      on
      its behalf, and any indebtedness made or created in reliance upon the professed
      exercise of such powers shall be guaranteed hereunder.

    

    
      	 	
              Section
                10.7

            	
              Waiver.

            

    

    

    (a)    Each
      of
      the Guarantors waives any right (except as shall be required by applicable
      law
      and cannot be waived) to require the Administrative Agent, any Lender or any
      Hedging Agreement Provider to (i) proceed against the Borrower, any other
      guarantor or any other party, (ii) proceed against or exhaust any security
      held
      from the Borrower, any other guarantor or any other party, or (iii) pursue
      any
      other remedy in the Administrative Agent’s, any Lender’s or any Hedging
      Agreement Provider’s power whatsoever. Each of the Guarantors waives any defense
      based on or arising out of any defense of the Borrower, any other guarantor
      or
      any other party other than payment in full of the Credit Party Obligations,
      including without limitation any defense based on or arising out of
      (A)
      the
      disability of the Borrower, any other guarantor or any other party,
      (B)
      the
      unenforceability or invalidity of the Credit Party Obligations or any part
      thereof from any cause, (C)
      the
      failure to properly perfect any Lien on the Collateral, (D)
      the
      amendment, modification or waiver of any Credit Document without the consent
      of
      such Guarantor, (E)
      any law
      or regulation of any jurisdiction or any other event affecting any term of
      the
      Guaranty or the other Credit Party Obligations, or (F)
      the
      cessation from any cause of the liability of the Borrower other than payment
      in
      full of the Credit Party Obligations. The Administrative Agent or any of the
      Lenders may, at their election, foreclose on any security held by the
      Administrative Agent or a Lender by one or more judicial or nonjudicial sales,
      whether or not every aspect of any such sale is commercially reasonable (to
      the
      extent such sale is permitted by applicable law), or exercise any other right
      or
      remedy the Administrative Agent and any Lender may have against the Borrower
      or
      any other party, or any security, without affecting or impairing in any way
      the
      liability of any Guarantor hereunder except to the extent the Credit Party
      Obligations have been paid in full. Each of the Guarantors, to the extent
      permitted by law, waives any defense arising out of any such election by the
      Administrative Agent and each of the Lenders, even though such election operates
      to impair or extinguish any right of reimbursement or subrogation or other
      right
      or remedy of the Guarantors against the Borrower or any other party or any
      security.

    

    
      
        
          
          

        

        
          126

          
            

          

        

        
          
          

        

      

    

    

    (b)    Each
      of
      the Guarantors waives all presentments, demands for performance, protests and
      notices, including without limitation notices of nonperformance, notices of
      protest, notices of dishonor, notices of acceptance of this Guaranty, and
      notices of the existence, creation or incurring of new or additional Credit
      Party Obligations. Each Guarantor assumes all responsibility for being and
      keeping itself informed of the Borrower’s financial condition and assets, and of
      all other circumstances bearing upon the risk of nonpayment of the Credit Party
      Obligations and the nature, scope and extent of the risks which such Guarantor
      assumes and incurs hereunder, and agrees that neither the Administrative Agent
      nor any Lender shall have any duty to advise such Guarantor of information
      known
      to it regarding such circumstances or risks.

    

    (c)    Each
      of
      the Guarantors hereby agrees it will not exercise any rights of subrogation
      which it may at any time otherwise have as a result of this Guaranty (whether
      contractual, under Section 509 of the U.S. Bankruptcy Code, or otherwise) to
      the
      claims of the Lenders or the Hedging Agreement Provider against the Borrower
      or
      any other guarantor of the Credit Party Obligations of the Borrower owing to
      the
      Lenders or such Hedging Agreement Provider (collectively, the “Other
      Parties”)
      or any
      contractual, statutory or common law rights of reimbursement, contribution
      or
      indemnity from any Other Party which it may at any time otherwise have as a
      result of this Guaranty until such time as the Credit Party Obligations shall
      have been paid in full, no Credit Document or Secured Hedging Agreement remains
      in effect and the Commitments have been terminated. Each of the Guarantors
      hereby further agrees not to exercise any right to enforce any other remedy
      which the Administrative Agent, the Lenders or any Hedging Agreement Provider
      now has or may hereafter have against any Other Party, any endorser or any
      other
      guarantor of all or any part of the Credit Party Obligations of the Borrower
      and
      any benefit of, and any right to participate in, any security or collateral
      given to or for the benefit of the Lenders and/or the Hedging Agreement
      Providers to secure payment of the Credit Party Obligations of the Borrower
      until such time as the Credit Party Obligations shall have been paid in full,
      no
      Credit Document or Secured Hedging Agreement remains in effect and the
      Commitments have been terminated.

    

    
      
        
          
          

        

        
          127

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              Section
                10.8

            	
              Limitation
                on Enforcement.

            

    

    

    The
      Lenders and the Hedging Agreement Providers agree that this Guaranty may be
      enforced only by the action of the Administrative Agent acting upon the
      instructions of the Required Lenders or any such Hedging Agreement Provider
      (only with respect to obligations under the applicable Secured Hedging
      Agreement) and that no Lender or Hedging Agreement Provider shall have any
      right
      individually to seek to enforce or to enforce this Guaranty, it being understood
      and agreed that such rights and remedies may be exercised by the Administrative
      Agent for the benefit of the Lenders under the terms of this Credit Agreement
      and for the benefit of any Hedging Agreement Provider under any Secured Hedging
      Agreement. The Lenders and the Hedging Agreement Providers further agree that
      this Guaranty may not be enforced against any director, officer, employee or
      stockholder of the Guarantors.

    

    
      	 	
              Section
                10.9

            	
              Confirmation
                of Payment.

            

    

    

    The
      Administrative Agent and the Lenders will, upon request after payment of the
      Credit Party Obligations under the Credit Documents which are the subject of
      this Guaranty and termination of the Commitments relating thereto, confirm
      to
      the Borrower, the Guarantors or any other Person that the Credit Party
      Obligations under the Credit Documents have been paid in full and the
      Commitments relating thereto terminated, and this Guaranty released, subject
      to
      the provisions of Section 10.2.

    

    
      
        
          
          

        

        
          128

          
            

          

        

        
          
          

        

        ORTHOFIX
          HOLDING, INC.

        CREDIT
          AGREEMENT

      

    

    
       

    

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

    

    

    
      	
              BORROWER:

            	
              ORTHOFIX
                HOLDINGS, INC.,

            	 
	 	
              a
                Delaware corporation

            	 
	 	 	 	 
	 	 	 	 
	 	
              By: 

            	/s/
              Thomas Hein	 
	 	
              Name:   
                

            	Thomas
              Hein	 
	 	
              Title:

            	Vice
              President and Secretary	 
	 	 	 	 
	 	 	 	 
	 	
              [Signature
                Pages Continue]

            	 

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        ORTHOFIX
          HOLDING, INC.

        CREDIT
          AGREEMENT

      

    

     

    
      	
              GUARANTORS:

            	
              ORTHOFIX
                INTERNATIONAL N.V.,

            	 
	 	
              a
                Netherlands Antilles corporation

            	 
	 	 	 	 
	 	
              By: 

            	/s/
              Thomas Hein	 
	 	
              Name:  
                

            	Thomas
              Hein	 
	 	
              Title:

            	Cheif
              Financial Officer	 
	 	 	 	 
	 	 	 	 
	 	
              [Signature
                Pages Continue] 

            	 

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        ORTHOFIX
          HOLDING, INC.

        CREDIT
          AGREEMENT

      

    

     

    
      	 	
              COLGATE
                MEDICAL LIMITED,

            	 
	 	
              a
                company formed under the laws of England and Wales

            	 
	 	 	 	 
	 	 	 	 
	 	
              By: 

            	/s/
              Thomas Hein	 
	 	
              Name:  
                

            	Thomas
              Hein	 
	 	
              Title:

            	Director	 
	 	 	 	 
	 	 	 	 
	 	
              [Signature
                Pages Continue] 

            	 

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        ORTHOFIX
          HOLDING, INC.

        CREDIT
          AGREEMENT

      

    

     

    
      	 	
              VICTORY
                MEDICAL LIMITED,

            	 
	 	
              a
                company formed under the laws of England and Wales

            	 
	 	 	 	 
	 	 	 	 
	 	
              By: 

            	/s/
              Thomas Hein	 
	 	
              Name:  
                

            	Thomas
              Hein	 
	 	
              Title:

            	Director	 
	 	 	 	 
	 	 	 	 
	 	
              [Signature
                Pages Continue] 

            	 

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        ORTHOFIX
          HOLDING, INC.

        CREDIT
          AGREEMENT

      

    

     

    
      	 	
              ORTHOFIX
                INC., 

            	 
	 	
              a
                Minnesota corporation

            	 
	 	 	 	 
	 	
              By: 

            	/s/
              Thomas Hein	 
	 	
              Name:   
                

            	Thomas
              Hein	 
	 	
              Title:

            	Chief
              Financial Officer, Vice President and Treasurer	 
	 	 	 	 
	 	 	 	 
	 	
              [Signature
                Pages Continue] 

            	 

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        ORTHOFIX
          HOLDING, INC.

        CREDIT
          AGREEMENT

      

    

     

    
      	 	
              BREG
                INC., 

            	 
	 	
              a
                California corporation

            	 
	 	 	 	 
	 	
              By: 

            	/s/
              Thomas Hein   	 
	 	
              Name:  
                

            	Thomas
              Hein	 
	 	
              Title:

            	Assistant
              Secretary	 
	 	 	 	 
	 	 	 	 
	 	
              [Signature
                Pages Continue] 

            	 

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        ORTHOFIX
          HOLDING, INC.

        CREDIT
          AGREEMENT

      

    

     

    
      	 	
              ORTHOFIX
                US LLC, 

            	 
	 	
              a
                Delaware limited liability company

            	 
	 	 	 	 
	 	
              By:

            	
              ORTHOFIX
                UK LTD,

            	 
	 	 	
              Sole
                Member

            	 
	 	 	 	 
	 	
              By: 

            	/s/
              Thomas Hein	 
	 	
              Name:   
                

            	Thomas
              Hein	 
	 	
              Title:

            	Secretary	 
	 	 	 	 
	 	 	 	 
	 	
              [Signature
                Pages Continue] 

            	 

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        ORTHOFIX
          HOLDING, INC.

        CREDIT
          AGREEMENT

      

    

     

    
      	 	
              AMEI
                TECHNOLOGIES INC., 

            	 
	 	
              a
                Delaware corporation

            	 
	 	 	 	 
	 	
              By: 

            	/s/
              Thomas Hein	 
	 	
              Name:  
                

            	Thomas
              Hein	 
	 	
              Title:

            	Treasurer
              and Assistant Secretary	 
	 	 	 	 
	 	 	 	 
	 	
              [Signature
                Pages Continue] 

            	 

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        ORTHOFIX
          HOLDING, INC.

        CREDIT
          AGREEMENT

      

    

     

    
      	 	
              NEOMEDICS,
                INC., a New Jersey corporation

            	 
	 	 	 	 
	 	
              By: 

            	/s/
              Thomas Hein	 
	 	
              Name:  
                

            	Thomas
              Hein	 
	 	
              Title:

            	Treasurer
              and Assistant Secretary	 
	 	 	 	 
	 	 	 	 
	 	
              [Signature
                Pages Continue] 

            	 

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        ORTHOFIX
          HOLDING, INC.

        CREDIT
          AGREEMENT

      

    

     

    
      	 	
              OSTEOGENICS
                INC., a Delaware corporation

            	 
	 	 	 	 
	 	
              By: 

            	/s/
              Thomas Hein	 
	 	
              Name:  
                

            	Thomas
              Hein	 
	 	
              Title:

            	Treasurer
              and Assistant Secretary	 
	 	 	 	 
	 	 	 	 
	 	
              [Signature
                Pages Continue] 

            	 

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        ORTHOFIX
          HOLDING, INC.

        CREDIT
          AGREEMENT

      

    

     

    
      	 	
              BLACKSTONE
                MEDICAL, INC.,

            	 
	 	
              a
                Massachusetts corporation

            	 
	 	 	 	 
	 	
              By: 

            	/s/
              Thomas Hein	 
	 	
              Name:  
                

            	Thomas
              Hein	 
	 	
              Title:

            	Treasurer	 
	 	 	 	 
	 	 	 	 
	 	
              [Signature
                Pages Continue] 

            	 

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        ORTHOFIX
          HOLDING, INC.

        CREDIT
          AGREEMENT

      

    

     

    
      	 	
              SWIFTSURE
                MEDICAL LIMITED,

            	 
	 	
              a
                company formed under the laws of England and Wales

            	 
	 	 	 	 
	 	
              By: 

            	/s/
              Thomas Hein	 
	 	
              Name:  
                

            	Thomas
              Hein	 
	 	
              Title:

            	Director	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
              [Signature
                Pages Continue] 

            	 

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        ORTHOFIX
          HOLDING, INC.

        CREDIT
          AGREEMENT

      

    

     

    
      	 	
              ORTHOFIX
                UK LTD,

            	 
	 	
              a
                company formed under the laws of England and Wales

            	 
	 	 	 	 
	 	
              By: 

            	/s/
              Thomas Hein	 
	 	
              Name:  
                

            	Thomas
              Hein	 
	 	
              Title:

            	
              Director

            	 
	 	 	 	 
	 	 	 	 
	 	
              [Signature
                Pages Continue] 

            	 

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        ORTHOFIX
          HOLDING, INC.

        CREDIT
          AGREEMENT

      

    

     

    
      	
              ADMINISTRATIVE
                AGENT:

            	
              WACHOVIA
                BANK, NATIONAL ASSOCIATION,

            	 
	 	
              as
                Administrative Agent for the Lenders and as a Lender

            	 
	 	 	 	 
	 	 	 	 
	 	
              By: 

            	/s/
              Scott Santa Cruz	 
	 	
              Name:  
                

            	Scott
              Santa Cruz	 
	 	
              Title:

            	DirectorTHIS MARKETING AGENCY AGREEMENT

                   Made as of the 21st day of September, 2006

                                    BETWEEN:

     WATAIRE INTERNATIONAL, INC., A NEVADA CORPORATION WHICH IS A WHOLLY OWNED
 SUBSIDIARY OF CIMBIX CORPORATION, A WASHINGTON CORPORATION (JOINTLY REFERRED TO
                                AS THE "COMPANY")

                                       AND

                             P 204 ENTERPRISES LTD.
               P204 ENTERPISES LTD. 258 CAMELOT COURT, KELOWNA BC,
                                 VIV IN2 CANADA
                             (The "Marketing Agent")

     WHEREAS,  Wataire  Industries, Inc., a Nevada corporation, is the legal and
beneficial owner of all right, title, intellectual property, and interest in and
to  the  trade  name,  copyright,  brand and trademark "Wataire" with respect to
Wataire's  proprietary  water-generating  machines  (the  "Product").

     WHEREAS,  Wataire  granted a worldwide license to the Company to market and
distribute  the  Products  and  the  Company  have  the rights to use packaging,
accessories, and promotional materials for the purposes of selling the Products;

     WHEREAS,  The  Marketing  Agent has requested and the Company has agreed to
grant  to the Marketing Agent, the distribution and marketing rights for private
label  branded  Products  on  the  terms  and  conditions  hereof.

     NOW  THEREFORE  THIS  AGREEMENT  WITNESSES  that  in  consideration  of the
premises  and  mutual  covenants  and  agreements  hereinafter  set  forth,  the
Marketing  Agent,  the  Company,  and  Wataire  International  agree as follows:

1.00 APPOINTMENT

1.01 The Company hereby appoints the Marketing Agent its Marketing Agent for
     private label branded products upon the terms and conditions hereinafter
     set forth, and the Marketing Agent hereby accepts such appointment.

1.02 SCOPE OF APPOINTMENT: Providing that the Marketing Agent has not breached
any provisions of this agreement and provided further that the Marketing Agent
diligently and faithfully carries out the duties and obligations imposed on it
by this Agreement, the Marketing Agent shall, during the term of this Agreement,
and any extended period of Agreement or upon renewal of this Agreement, be the
Wataire marketing Agent of the Company selling private label

                                        1
<PAGE>
products on a global basis. The Company shall not appoint any other Private
Label Marketing agent nor otherwise distribute or sell the Marketing Agent's
branded product.  The Marketing Agent also agrees to exclusively purchase all
atmospheric water generating related products from the Company.
Notwithstanding the Company's appointment of the Marketing Agent as its private
label Marketing Agent and the Marketing Agent's agreement to exclusively
purchase all atmospheric water generating products from the Company, the Company
reserves the right, at its sole discretion, to manufacture and sell its products
under any other private label brand on the following conditions:

          (i) The Company agrees not to manufacture or sell its atmospheric
          water generating related products to or under any other private label
          brand other than the "Wataire" brand(s), any other brand developed by
          the Company for its own sales, or the Marketing Agent's private label
          brand(s) for less than a minimum of 20% over the standard invoice
          price to the Marketing Agent before freight, taxes and duties.

          (ii) The Marketing Agent will use its best efforts assist the Company
          by contributing its expertise on successful brand creation and
          development, and the Company will endeavor to ensure the private label
          brand does not create undue market channel confusion or make available
          any foreseeable technical advantages that are not also available to
          the Marketing Agent's brands.

          (iii) The Company and the Marketing Agent shall equally share the
          revenues from any competitive private label brand introduced by the
          Marketing Agent, which revenues are above the amounts over the normal
          invoice price to the Marketing Agent before freight, taxes and duties.
          The Marketing Agent agrees to bring all private label requests from
          its retail market channel customers to the Company and, if the Company
          agrees to supply the retailer's private label brand, then the
          Marketing Agent will be compensated as in 1.04 above. This provision
          is to prevent loss of any prospective private label sale and insure
          cooperation between the Company and the Marketing Agent.

1.03 PRICING POLICY:  Prices are subject to revision and change by the Company
from time to time, and the Company will make every effort to provide the
Marketing Agent 30-45 days notice of any price changes.

1.04 SUB AGENTS: The Company grants the right to the Marketing Agent to appoint
Sales Dealers and Sub-Distributors, such appointments shall be at the Marketing
Agents expense, subject to the provisions of Section 4.02 below and subject to
prior written approval by the Company

1.05 SALES ACTIVITIES: The Company grants the rights to the Marketing Agent to
market promote and sell the private label branded products.

1.06 Sales quota: The Company agrees that only the sales or orders generated
directly by the Marketing Agent's efforts for the sale of the Marketing Agent's
branded products will be counted as part of any required sales quota.

                                        2
<PAGE>
1.07 CUSTOMER INQUIRIES.  The Company covenants and agrees that all inquiries
with respect to private label brands, or orders for, the Marketing Agents brand
of Products received by the Company shall be referred to the Marketing Agent for
the Marketing Agent's attention in accordance with the terms of this agreement.

1.08 The Marketing Agent covenants and agrees that all inquiries with respect to
private label brands or orders for the Product received by the Marketing Agent
that he cannot appropriately service shall be referred to the Company for the
attention of the Company.

2.00 TERM

The term of this Agreement shall be for a period of five years and will commence
immediately upon execution of this agreement.

RENEWAL.
The Company and the Marketing Agent agree to negotiate an extension to this
agreement for a further five-year period, if, within the term of this Agreement,
the Marketing Agent has fulfilled all of its obligations and duties hereunder.

3.00  OBLIGATIONS  OF  THE  AGENT

During the term of this Agreement the Marketing Agent shall use its best efforts
to  advertise  and  promote the sale of the private branded Products and to make
regular  and  sufficient  contact  with  any  prospective  customers.

3.01  The Marketing Agent agrees to supply the Company with quarterly records of
all  contacts  made  by  the  Marketing  Agent's  representatives;  and

3.02  The  Marketing  Agent assumes all liability, responsibilities and expenses
for  "After Sales Service", and must work towards stocking a minimum quantity of
replacement  parts  equal  to  3-4%  of  its  projected  sales  volume.

3.03  The  Marketing  Agent  agrees to limit his sales activities to the private
label  branded  product  unless  otherwise  authorized  by  the  Company.

4.00 STATUS OF AGENT

4.01 The status of the Marketing Agent shall be that of an independent
     contractor and the Marketing Agent shall have no authority to assume or
     create any obligation whatsoever expressed or implied, in the name of the
     Company, or to bind the Company in any manner whatsoever.
4.02 The Marketing Agent shall have no authority hereunder to enter into any
     contract of sale or employment on behalf of the Company, or to endorse the
     Company's checks, or to make allowances or adjustments on accounts for the
     return of merchandise, except pursuant to written authorization of the
     Company. The Company retains the right to review and approve of the legal
     language in any Dealer, Sub-agent or Distribution appointment agreement

                                        3
<PAGE>
     entered into by the Marketing Agent that will or could oblige the Company
     in any manner.
4.03 The Marketing Agent undertakes and agrees that it will not furnish to any
     customer or prospective customer, any warranties, undertakings, or
     guarantees other than the Company's standard written and authorized product
     warranties, undertakings or guarantees that may intend to involve the
     responsibility or liability of the Company unless authorized by the Company
     in writing. In the event that the Marketing Agent does allow or furnish to
     customers or prospective customers, any additional warranties, undertakings
     or guarantees of any nature whatsoever, which might involve the
     responsibility or liability of the Company, and which is not authorized by
     the Company in writing, the Marketing Agent agrees to indemnify and save
     the Company harmless from any claims, demands, damages, costs or losses
     whatsoever arising out of or in any way connected with such warranties,
     undertakings or guarantees.

5.00 EXPENSES

     5.01 Except as hereinafter provided, all expenses in connection with
          the Marketing Agent's performance of this Agreement and its activities
          as Marketing Agent for the Company in accordance with the terms of
          this Agreement, including, but not limited to travel, automobile,
          salaries and supplies, shall be borne by the Marketing Agent and it
          shall be solely responsible for the payment thereof.
          At its discretion and in the interest of promoting sales the Company
          may provide at its expense, technical information, access to marketing
          materials and technical personal for purposes of training, product
          launches, and trade shows.

6.00 ACCEPTANCE OF ORDERS

     6.01 Orders received by the Marketing Agent for the purchase of
          private label branded Products shall not bind the Company until
          accepted by it. The Company reserves the sole and exclusive right to
          accept or reject any order. In the interests of duty and corporate
          growth the Company shall make every effort to complete the supplier
          obligations and agrees not to unreasonably or capriciously reject any
          orders obtained as a result of the efforts of the Marketing Agent.
          This condition is in part to protect the Company against supply
          shortages, acts of God, natural disasters and component supply
          problems.

7.00 OBLIGATIONS OF THE COMPANY

     7.01 During the currency of this Agreement the Company shall:

          7.01.01   Permit the Marketing Agent to hold itself out as the
                    Marketing Agent, for the private label branded Product
                    during the term of this Agreement, and during any renewal
                    term

          7.01.02   Permit the Marketing Agent to use all intellectual
                    property rights and know how associated with the Product in
                    the course of its performance of this Agreement;

                                        4
<PAGE>
          7.01.03   Provide technical materials, pricing information and
                    other related materials as may be reasonably required to
                    market the Product.

          7.01.04   Provide to the Marketing Agent a commercially
                    acceptable industry standard one-year parts replacement
                    warranty for the Product.

8.00 PRICING AND TERMS

8.01 The Marketing Agent agrees to purchases of the Products as follows:

          8.01.01   Initial order of two - CI 2500 Commercial Industrial
                    units

          8.01.02   Five 40-ft. containers of WII- 4012 or an equivalent
                    cash value for any future units mutually agreed upon by the
                    Company and the Marketing Agent This product order shall be
                    placed immediately upon execution of this Agreement.

          8.01.02   Annual minimum quantities of six CI-2500 Commercial
                    Industrial units and twelve 40-ft. containers of WII-4012
                    units, or equivalent value respective future units mutually
                    agreed upon by the Company and the Marketing Agent.

          8.01.03   All purchases by the Marketing Agent will be on a
                    "FOB factory" basis.

          8.01.04   The Marketing Agent's price for the CI-2500
                    Commercial Industrial units, the W II-4012 units and all
                    future product will be subject to price changes under the
                    terms of this contract, in USD and are currently as follows:

             I)     2500  LPD  units  @  $  82,500.00
            II)     WII-4012  @  $  546.00  per  unit

          8.01.05   An Irrevocable Transferable Letter of Credit posted
                    with a financial Institution acceptable to the company must
                    accompany each order, notwithstanding the initial order
                    which the Company has agreed to allow 45-days from the
                    signing of this agreement for the Marketing Agent to post
                    the initial Irrevocable Transferable Letter of Credit in
                    order to facilitate the initial time required to properly
                    organize, capitalize, and structure the Marketing Agent's
                    company in anticipation of fulfilling the Marketing Agent's
                    obligations in this agreement and to allow the Company and
                    Marketing Agent the appropriate time to design and approve
                    the private label branded units.

          8.01.06   The Company will facilitate orders immediately upon
                    receiving the

                                        5
<PAGE>
                    transferable Irrevocable Letter of Credit, and shall make
                    its best effort to deliver all goods within 60 days of
                    acceptance of the said letter of Credit.

9.00 RIGHTS OF FIRST REFUSAL

9.01 The Company and the Marketing Agent mutually agree that the intent of this
     Agreement is to grow each other's businesses and therefore grant a right of
     first refusal to one another on the following basis;

9.02 The Marketing Agent agrees to disclose all products not manufactured by the
     Company which the Marketing Agent may wish to manufacture under the
     Marketing Agent's brand and give the Company a 90-day right of first
     refusal to supply the Marketing Agent with equivalent products. The
     Marketing Agent will disclose all costs, product specifications, product
     forecasts, minimum opening and first year orders and all other related
     materials from any competitive suppliers that the Marketing Agent is
     considering in order to allow the Company a 90-day period to properly
     evaluate and access whether the Company has the interest, ability or desire
     to offer the Marketing Agent an equivalent product at a competitive price.

9.03 If the Company can offer the Marketing Agent an equivalent product at a
     completive price and reasonable time and production schedule, the Marketing
     Agent agrees to purchase this product from the Company. This provision does
     not authorize the Marketing Agent to manufacture or to source manufacturing
     using water-from-air harvesting technologies already developed by the
     Company.

9.04 The Company agrees to give the Marketing Agent a 90-day right of first
     refusal to be the private label brand of any future related product the
     Company is considering manufacturing or marketing. The Company will supply
     the Marketing Agent all costs, product specifications, minimum order
     requirements and all other related materials in order to allow the
     Marketing Agent a 90-day period to properly access whether the Marketing
     Agent has the interest, ability or desire to fulfill the Company's
     manufacturing and marketing goals for future related products. If the
     Marketing Agent is able to meet the Company's minimum order requirements
     and terms, the Company agrees to supply the Marketing Agent these future
     related products under the Marketing Agent's Private Label Brand.

9.05 If either the Marketing Agent or the Company has offered the other a
     written proposal outlining its desire to market future new related
     products, and has reasonably given the other the product specifications,
     minimum order requirements and other reasonable information to access the
     opportunity, and has either received notice from the other declining the
     right to participate in the opportunity or has allowed 90-days from the
     time the written proposal has been offered and has not received
     confirmation of the intent and ability of the other to participate, then
     both the Marketing Agent and the Company mutually agree to grant the other
     the ability to pursue the stated opportunity with whomever they choose and
     be free of any further obligation to each other in regards to the specific
     product(s) given the other in the original proposed outline.

                                        6
<PAGE>
9.06 The Marketing Agent agrees to grant the Company a 90-day right of first
     refusal to participate with the Marketing Agent in any offering or entry
     into any form of agreement with a publicly trading company using or
     promoting the branded product or products provided to companies in the
     course of standard sales and marketing activities.

10.00 TERMINATION WITHOUT NOTICE

10.01 The Company may, in its sole discretion, terminate this Agreement without
      notice or delay on the happening of any of the following events:

         10.01.01   The Marketing Agent breaching any of the terms or
                    conditions of this agreement;

         10.01.02   The Marketing Agent becoming insolvent or being
                    unable to pay its debts as they generally become due;

         10.01.03   The Marketing Agent making an assignment for the
                    benefit of its creditors or being petitioned into
                    Bankruptcy;

         10.01.04   A Receiver or Trustee in Bankruptcy of the
                    Marketing Agent being appointed; or

         10.01.05   The Marketing Agent is not being the effective
                    cause of the sale of a minimum of 50% of the agreed annual
                    quantities by the end of the first 12 months. In the event
                    of termination for failure to reach the required sale
                    targets, the Marketing Agent shall continue to be obligated
                    under this Agreement as set out herein, for any sales or
                    dealership or sub-agent agreements entered into prior to the
                    date of termination.

11.00    GENERAL  PROVISIONS

11.01 The  Marketing Agent may, in its sole discretion, terminate this Agreement
without  notice  or  delay  on  the  happening  of  any of the following events:

     (i) the Company breaching any of the terms or conditions of this Agreement;

     (ii) the Company becoming insolvent or being unable to pay its debts as
     they generally become due;

     (iii) the Company making an assignment for the benefit of its creditors or
     being petitioned into Bankruptcy;

     (iv) a Receiver or Trustee in Bankruptcy of the Company being appointed; or

     (v) the Company being unable to supply a minimum of 50% of the agreed
     annual first year quantities  to  the  Marketing  Agent.

                                        7
<PAGE>
11.02  INDEMNIFICATION.  The  Company agrees to indemnify and save the Marketing
Agent  harmless  from  any  claims, demands, damages, costs or losses whatsoever
arising  out  of or in any way connected with the intellectual property, patents
or  manufacturing  processes of The Company in supplying the Marketing Agent its
product.   The  Company agrees, at its sole cost, to defend all legal challenges
brought against the Marketing Agent connected with the intellectual property and
its  right  to  market or manufacture the atmospheric water generators/purifiers
which  the  Company  is  supplying to the Marketing Agent.   The Marketing Agent
agrees  to  cooperate  fully with the company in furnishing the company with any
notices  of  any legal challenges whatsoever and in cooperating with the Company
fully in preparing its legal defense for any intellectual property related legal
challenges.

11.03  FORCE MAJEURE.  In the Event of an inability or failure by the Company to
manufacture, supply or ship any of the Product by reason of any fire, explosion,
war, riot, strike, walk out, labor controversy, flood, shortage of water, power,
labor,  or transportation facilities of necessary materials or supplies. Default
or  failure  of a carrier, breakdown in or the loss of production or anticipated
production  from plant or equipment, act of God or public enemy, any law, act or
order  of  any  court,  board,  government  or  other  authority  of  competent
jurisdiction, or any other direct cause (whether or not of the same character as
the  foregoing)  beyond  the reasonable control of the Company, then the Company
shall  not  be liable to the Marketing Agent during the period and to the extent
of such inability or failure.  Deliveries omitted in whole or in part while such
inability  remains  in  effect  shall  be  cancelled.

11.04  GOVERNING  LAW.  This agreement shall be made and construed in accordance
with  the  laws  of  the  State  of Nevada, USA. All disputes arising from or in
connection  with  this  contract  shall  if possible be settled amicably through
friendly  negotiation.  In case no settlement can be reached thereby the dispute
may,  if  either Party so desires, be resolved by arbitration, to be approved by
mutual  consent; otherwise, the parties agree that any litigation concerning the
terms  of  this  Agreement  shall  be  resolved by litigation conducted in Clark
County,  Nevada, and both parties consent to such location as a convenient forum
for  the  resolution  of  disputes.

11.05  ENTIRE  AGREEMENT.  This  Agreement  together  with  all  other documents
incorporated  by  reference  shall  constitute  the entire agreement between the
Company and the Marketing Agent. With respect to all matters herein it is agreed
that  its  execution  has  not  been  induced  by,  nor  does the Company or the
Marketing  Agent rely upon or regard as material, any representations or writing
whatsoever  not  incorporated  herein  and made a part hereof and this agreement
shall  not  be  amended,  altered  or  qualified except by memorandum in writing
signed  by  the  Company  and  the Marketing Agent. Any amendment, alteration or
qualification  hereof  shall  be null and void and shall not be binding upon any
party  who  has  not  given  its  consent  aforesaid.

11.06  TIME  OF THE ESSENCE.  Time shall be of the essence of this agreement and
every  part  hereof.

11.07  NOTICE.  Any  notice,  demand  or other communication by the terms hereof
required  or  permitted  to  be  given by one party to another shall be given in
writing  by  registered  mail, postage prepaid, addressed to such other party or
delivered  to  such  other  part  as  follows:

                                        8
<PAGE>
               COMPANY:
               9663  SANTA  MONICA  BOULEVARD.  SUITE  134
               BEVERLY  HILLS,  CA  90210

               MARKETING  AGENT:

               P204  ENTERPISES  LTD.  258  CAMELOT COURT, KELOWNA  BC,
               VIV  IN2  CANADA

Or  such  other  address  as  may  be  given  by any of the parties.  Any notice
required  or  permitted  under  this  Agreement shall be in writing and shall be
deemed  to be given upon the date of delivery by commercial express mail service
(e.g.  FedEx,  UPS,  etc.),  next-business  day  delivery,  postage  prepaid and
addressed  to  the  addressee at the last address recorded on the records of the
Company.

11.08  NON-WAIVER.  No  waiver  by any party of any breach by any other party of
any  of its covenants, obligations and agreements hereunder shall be a waiver of
any  subsequent breach of any other covenant, obligation or agreement, nor shall
any  forbearance  to  seek a remedy for any breach be a waiver of any rights and
remedies  with  respect  to  such  or  any  subsequent  breach.

11.09  NUMBER AND GENDER.  All terms and words used in this agreement regardless
of the number and gender in which they are used shall be deemed and construed to
include any other number, singular or plural, and any other gender, masculine or
feminine or neuter as the context or sense of this agreement or any paragraph or
clause  herein  may require, the same as if such words would have been fully and
properly  written  in  the  appropriate  number  and  gender.

      (The remainder of this page is intentionally blank.  The signature page
                                    follows.)

                                        9
<PAGE>
IN WITNESS WHEREOF THE PARTIES HERETO AS OF THE DAY AND YEAR FIRST ABOVE WRITTEN
HAVE  DULY  EXECUTED  THIS  AGREEMENT.

SIGNED,  SEALED  AND  DELIVERED
In  the  presence  of:                       CIMBIX  CORPORATION

Name                                      Per
    ----------------------------             ---------------------------

Address                                      Authorized  Signatory
       -------------------------

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

Title
     ---------------------

SIGNED,  SEALED  AND  DELIVERED
In  the  presence  of:                       P  204  ENTERPRISES  LTD.

Name                                      Per
    ----------------------------             ---------------------------

Address                                      Authorized  Signatory
       -------------------------

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

Title
     ------------------------

                                       10

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