Document:

EXHIBIT 10.1

MEDICALCV,
INC.

NON-EMPLOYEE DIRECTOR COMPENSATION POLICY

Effective November
1, 2006, compensation for service on the Board of Directors of MedicalCV, Inc.
will be as follows:

Annual
Cash Compensation

	
  Board Member (other
  than Board Chair)

  	
   

  	
  $

  	
  10,000

  	
   

  
	
  Board Chair

  	
   

  	
  $

  	
  24,000

  	
   

  
	
  Audit Committee Member
  (other than Audit Committee Chair)

  	
   

  	
  $

  	
  1,500

  	
   

  
	
  Audit Committee Chair

  	
   

  	
  $

  	
  4,000

  	
   

  
	
  Compensation Committee
  Member (other than Compensation Committee Chair)

  	
   

  	
  $

  	
  1,000

  	
   

  
	
  Compensation Committee Chair

  	
   

  	
  $

  	
  1,500

  	
   

  

 

Equity
Compensation

Each non-employee
director who is elected to the Board other than at an annual meeting of
shareholders of the Company will automatically receive a ten-year option to
purchase 5,000 shares of common stock. 
Such option will (1) have a per share exercise price equal to the fair
market value of one share of common stock on the date of grant, (2) become
exercisable on the first anniversary of the date of grant, and (3) be granted
pursuant to the terms and conditions of the Amended and Restated 2001 Equity
Incentive Plan.  The date of grant shall
be the date of election of such person to the Board.

The foregoing
option awards are in addition to the awards automatically granted pursuant to
Section 5(b) of the 2005 Director Stock Option Plan.  Under that plan, each year, as of the date of
the annual meeting of shareholders of the Company, each non-employee director
who has been elected or reelected or who is continuing as a member of the Board
as of the adjournment of the annual meeting, automatically receives an option
award in the amount of 5,000 shares.  In addition, each non-employee
director who is elected to the Board other than at an annual meeting of
shareholders of the Company automatically receives an initial option
award.  The number of shares to be covered by such initial award shall
equal the nearest whole number, rounded down, equal to (a) 5,000 shares
multiplied by (b) the quotient obtained by dividing (1) the number of
whole weeks between the date of such person’s election to the Board and the
scheduled date of the next annual meeting of shareholders of the Company and
(2) 52 weeks.  The date of such initial award shall be the date of
election of such person to the Board.

As a result of the
foregoing, depending upon the time of year at which he or she joins the Board,
a non-employee director who is elected to the Board other than at an annual
meeting of shareholders of the Company will receive initial option awards to
purchase between 5,000 shares and 10,000 shares in the aggregate.Exhibit 10.25

EXECUTION COPY

 

$300,000,000

CREDIT
AGREEMENT

among

SYNOPSYS, INC.,

as
Borrower,

The
Several Lenders from Time to Time Parties Hereto,

BNP
PARIBAS

and

WELLS FARGO BANK, N.A.,

as
Co-Documentation Agents,

BANK OF AMERICA, N.A.,

as
Syndication Agent,

and

JPMORGAN CHASE BANK, N.A.,

as
Administrative Agent

Dated
as of October 20, 2006

 

J.P.
MORGAN SECURITIES, INC. and BANC OF AMERICA SECURITIES LLC,

as Joint Lead Arrangers

J.P.
MORGAN SECURITIES INC., as Bookrunner

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  	
   

  
	
  SECTION
  1.

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.1

  	
   

  	
  Defined Terms

  	
   

  	
  1

  	
   

  
	
  1.2

  	
   

  	
  Other
  Definitional Provisions

  	
   

  	
  14

  	
   

  
	
  1.3

  	
   

  	
  Currency
  Conversion

  	
   

  	
  14

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  2.

  	
   

  	
  AMOUNT AND TERMS OF REVOLVING COMMITMENTS

  	
   

  	
  14

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  Revolving
  Commitments

  	
   

  	
  14

  	
   

  
	
  2.2

  	
   

  	
  Procedure for
  Revolving Loan Borrowing

  	
   

  	
  15

  	
   

  
	
  2.3

  	
   

  	
  Swingline
  Commitment

  	
   

  	
  16

  	
   

  
	
  2.4

  	
   

  	
  Procedure for
  Swingline Borrowing; Refunding of Swingline Loans

  	
   

  	
  16

  	
   

  
	
  2.5

  	
   

  	
  Facility Fees,
  etc.

  	
   

  	
  18

  	
   

  
	
  2.6

  	
   

  	
  Termination or
  Reduction of Revolving Commitments

  	
   

  	
  18

  	
   

  
	
  2.7

  	
   

  	
  Additional
  Revolving Commitments

  	
   

  	
  18

  	
   

  
	
  2.8

  	
   

  	
  Optional
  Prepayments

  	
   

  	
  19

  	
   

  
	
  2.9

  	
   

  	
  Conversion and
  Continuation Options

  	
   

  	
  20

  	
   

  
	
  2.10

  	
   

  	
  Limitations on
  Eurodollar Tranches

  	
   

  	
  20

  	
   

  
	
  2.11

  	
   

  	
  Interest Rates
  and Payment Dates

  	
   

  	
  21

  	
   

  
	
  2.12

  	
   

  	
  Computation of
  Interest and Fees

  	
   

  	
  21

  	
   

  
	
  2.13

  	
   

  	
  Inability to
  Determine Interest Rate

  	
   

  	
  21

  	
   

  
	
  2.14

  	
   

  	
  Pro Rata
  Treatment and Payments

  	
   

  	
  22

  	
   

  
	
  2.15

  	
   

  	
  Requirements of
  Law

  	
   

  	
  24

  	
   

  
	
  2.16

  	
   

  	
  Taxes

  	
   

  	
  26

  	
   

  
	
  2.17

  	
   

  	
  Indemnity

  	
   

  	
  27

  	
   

  
	
  2.18

  	
   

  	
  Change of
  Lending Office

  	
   

  	
  28

  	
   

  
	
  2.19

  	
   

  	
  Replacement of
  Lenders

  	
   

  	
  28

  	
   

  
	
  2.20

  	
   

  	
  Release of
  Subsidiary Guarantor

  	
   

  	
  28

  	
   

  
	
  2.21

  	
   

  	
  Judgment
  Currency

  	
   

  	
  29

  	
   

  
	
  2.22

  	
   

  	
  Foreign Currency
  Exchange Rate

  	
   

  	
  29

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  3.

  	
   

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
  30

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.1

  	
   

  	
  Financial
  Condition

  	
   

  	
  30

  	
   

  
	
  3.2

  	
   

  	
  No Change

  	
   

  	
  30

  	
   

  
	
  3.3

  	
   

  	
  Existence;
  Compliance with Law

  	
   

  	
  30

  	
   

  
	
  3.4

  	
   

  	
  Power;
  Authorization; Enforceable Obligations

  	
   

  	
  30

  	
   

  
	
  3.5

  	
   

  	
  No Legal Bar

  	
   

  	
  31

  	
   

  
	
  3.6

  	
   

  	
  Litigation

  	
   

  	
  31

  	
   

  
	
  3.7

  	
   

  	
  No Default

  	
   

  	
  31

  	
   

  
	
  3.8

  	
   

  	
  Ownership of
  Property; Liens

  	
   

  	
  31

  	
   

  
	
  3.9

  	
   

  	
  Intellectual
  Property

  	
   

  	
  31

  	
   

  
	
  3.10

  	
   

  	
  Taxes

  	
   

  	
  31

  	
   

  
	
  3.11

  	
   

  	
  Federal
  Regulations

  	
   

  	
  31

  	
   

  
	
  3.12

  	
   

  	
  Labor Matters

  	
   

  	
  32

  	
   

  
	
  3.13

  	
   

  	
  ERISA

  	
   

  	
  32

  	
   

  
	
  3.14

  	
   

  	
  Investment
  Company Act; Other Regulations

  	
   

  	
  32

  	
   

  

 

 i
 

 

 

	
  3.15

  	
   

  	
  Use of Proceeds

  	
   

  	
  32

  	
   

  
	
  3.16

  	
   

  	
  Environmental
  Matters

  	
   

  	
  32

  	
   

  
	
  3.17

  	
   

  	
  Accuracy of
  Information, etc.

  	
   

  	
  32

  	
   

  
	
  3.18

  	
   

  	
  Solvency

  	
   

  	
  33

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  4.

  	
   

  	
  CONDITIONS PRECEDENT

  	
   

  	
  33

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  Conditions to
  Initial Extension of Credit

  	
   

  	
  33

  	
   

  
	
  4.2

  	
   

  	
  Conditions to
  Each Extension of Credit

  	
   

  	
  34

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  5.

  	
   

  	
  AFFIRMATIVE COVENANTS

  	
   

  	
  34

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  Financial
  Statements

  	
   

  	
  34

  	
   

  
	
  5.2

  	
   

  	
  Certificates;
  Other Information

  	
   

  	
  35

  	
   

  
	
  5.3

  	
   

  	
  Payment of
  Obligations

  	
   

  	
  36

  	
   

  
	
  5.4

  	
   

  	
  Maintenance of
  Existence; Compliance

  	
   

  	
  36

  	
   

  
	
  5.5

  	
   

  	
  Maintenance of
  Property; Insurance

  	
   

  	
  36

  	
   

  
	
  5.6

  	
   

  	
  Inspection of
  Property; Books and Records; Discussions

  	
   

  	
  36

  	
   

  
	
  5.7

  	
   

  	
  Notices

  	
   

  	
  36

  	
   

  
	
  5.8

  	
   

  	
  Environmental
  Laws

  	
   

  	
  37

  	
   

  
	
  5.9

  	
   

  	
  New Significant
  Subsidiaries

  	
   

  	
  37

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  6.

  	
   

  	
  NEGATIVE COVENANTS

  	
   

  	
  37

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  Financial
  Condition Covenants

  	
   

  	
  37

  	
   

  
	
  6.2

  	
   

  	
  Subsidiary
  Indebtedness

  	
   

  	
  37

  	
   

  
	
  6.3

  	
   

  	
  Liens

  	
   

  	
  38

  	
   

  
	
  6.4

  	
   

  	
  Fundamental
  Changes

  	
   

  	
  39

  	
   

  
	
  6.5

  	
   

  	
  Disposition of
  Property

  	
   

  	
  40

  	
   

  
	
  6.6

  	
   

  	
  Transactions
  with Affiliates

  	
   

  	
  41

  	
   

  
	
  6.7

  	
   

  	
  Changes in
  Fiscal Periods

  	
   

  	
  41

  	
   

  
	
  6.8

  	
   

  	
  Clauses
  Restricting Subsidiary Distributions

  	
   

  	
  41

  	
   

  
	
  6.9

  	
   

  	
  Lines of
  Business

  	
   

  	
  41

  	
   

  
	
  6.10

  	
   

  	
  Material
  Acquisitions

  	
   

  	
  42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  7.

  	
   

  	
  EVENTS OF DEFAULT

  	
   

  	
  42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
   

  	
  Events of
  Default

  	
   

  	
  42

  	
   

  
	
  7.2

  	
   

  	
  Annulment of
  Defaults

  	
   

  	
  44

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  8.

  	
   

  	
  THE AGENTS

  	
   

  	
  44

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.1

  	
   

  	
  Appointment

  	
   

  	
  44

  	
   

  
	
  8.2

  	
   

  	
  Delegation of
  Duties

  	
   

  	
  44

  	
   

  
	
  8.3

  	
   

  	
  Exculpatory
  Provisions

  	
   

  	
  44

  	
   

  
	
  8.4

  	
   

  	
  Reliance by
  Administrative Agent

  	
   

  	
  45

  	
   

  
	
  8.5

  	
   

  	
  Notice of
  Default

  	
   

  	
  45

  	
   

  
	
  8.6

  	
   

  	
  Non-Reliance on
  Agents and Other Lenders

  	
   

  	
  45

  	
   

  
	
  8.7

  	
   

  	
  Indemnification

  	
   

  	
  46

  	
   

  
	
  8.8

  	
   

  	
  Agent in Its
  Individual Capacity

  	
   

  	
  46

  	
   

  
	
  8.9

  	
   

  	
  Successor
  Administrative Agent

  	
   

  	
  46

  	
   

  

 

 ii
 

 

 

	
  8.10

  	
   

  	
  Syndication
  Agent

  	
   

  	
  47

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  9.

  	
   

  	
  GUARANTEE OF SUBSIDIARY BORROWER OBLIGATIONS

  	
   

  	
  47

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.1

  	
   

  	
  Guarantee.

  	
   

  	
  47

  	
   

  
	
  9.2

  	
   

  	
  No Subrogation

  	
   

  	
  47

  	
   

  
	
  9.3

  	
   

  	
  Amendments, etc.
  with respect to the Obligations; Waiver of Rights

  	
   

  	
  48

  	
   

  
	
  9.4

  	
   

  	
  Guarantee
  Absolute and Unconditional

  	
   

  	
  48

  	
   

  
	
  9.5

  	
   

  	
  Reinstatement

  	
   

  	
  49

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  10.

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  49

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1

  	
   

  	
  Amendments and
  Waivers

  	
   

  	
  49

  	
   

  
	
  10.2

  	
   

  	
  Notices

  	
   

  	
  50

  	
   

  
	
  10.3

  	
   

  	
  No Waiver;
  Cumulative Remedies

  	
   

  	
  51

  	
   

  
	
  10.4

  	
   

  	
  Survival of
  Representations and Warranties

  	
   

  	
  51

  	
   

  
	
  10.5

  	
   

  	
  Payment of
  Expenses and Taxes

  	
   

  	
  52

  	
   

  
	
  10.6

  	
   

  	
  Successors and
  Assigns; Participations and Assignments

  	
   

  	
  53

  	
   

  
	
  10.7

  	
   

  	
  Adjustments; Set-off

  	
   

  	
  55

  	
   

  
	
  10.8

  	
   

  	
  Counterparts

  	
   

  	
  55

  	
   

  
	
  10.9

  	
   

  	
  Severability

  	
   

  	
  55

  	
   

  
	
  10.10

  	
   

  	
  Integration

  	
   

  	
  55

  	
   

  
	
  10.11

  	
   

  	
  GOVERNING
  LAW

  	
   

  	
  56

  	
   

  
	
  10.12

  	
   

  	
  Submission To
  Jurisdiction; Waivers

  	
   

  	
  56

  	
   

  
	
  10.13

  	
   

  	
  Acknowledgements

  	
   

  	
  56

  	
   

  
	
  10.14

  	
   

  	
  Releases of
  Guarantees

  	
   

  	
  56

  	
   

  
	
  10.15

  	
   

  	
  Confidentiality

  	
   

  	
  57

  	
   

  
	
  10.16

  	
   

  	
  WAIVERS
  OF JURY TRIAL

  	
   

  	
  57

  	
   

  
	
  10.17

  	
   

  	
  USA Patriot Act

  	
   

  	
  57

  	
   

  

 

 iii
 

 

 

SCHEDULES:

	
  1.1A

  	
   

  	
  Revolving
  Commitments

  	
   

  
	
  6.2(d)

  	
   

  	
  Existing
  Indebtedness

  	
   

  
	
  6.3(f)

  	
   

  	
  Existing Liens

  	
   

  

 

EXHIBITS:

	
  A

  	
   

  	
  Form of
  Guarantee Agreement

  	
   

  
	
  B

  	
   

  	
  Form of Closing
  Certificate

  	
   

  
	
  C

  	
   

  	
  Form of
  Assignment and Assumption

  	
   

  
	
  D

  	
   

  	
  Form of
  Exemption Certificate

  	
   

  
	
  E-1

  	
   

  	
  Form of New
  Lender Supplement

  	
   

  
	
  E-2

  	
   

  	
  Form of
  Increased Revolving Commitment Activation Notice

  	
   

  
	
  F

  	
   

  	
  Joinder Agreement

  	
   

  

 iv

 

CREDIT AGREEMENT (this “Agreement”),
dated as of October 20, 2006, among SYNOPSYS, INC., a Delaware corporation (the
“Borrower”), the several banks and other financial institutions or
entities from time to time parties to this Agreement (the “Lenders”),
BANK OF AMERICA, N.A., as syndication agent (in such capacity, the “Syndication
Agent”), and JPMORGAN CHASE BANK, N.A., as administrative agent.

W I T N E S S E T H:

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

SECTION
1.           DEFINITIONS

Defined Terms.  As used in this Agreement, the terms listed
in this Section 1.1 shall have the respective meanings set forth in this
Section 1.1.

“ABR”: 
for any day, a rate per annum (rounded upwards, if necessary, to the
next 1/16 of 1%) 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 the rate of interest per annum publicly announced from time to time by
JPMorgan Chase Bank, N.A. as its prime rate in effect at its principal office
in New York City (the Prime Rate not being intended to be the lowest rate of
interest charged by JPMorgan
Chase Bank, N.A. in connection with extensions of credit to debtors).  Any change in the ABR due to a change in the
Prime Rate or the Federal Funds Effective Rate shall be effective as of the
opening of business on the effective day of such change in the Prime Rate or
the Federal Funds Effective Rate, respectively.

“ABR Loans”:  Revolving Loans the rate of interest
applicable to which is based upon the ABR.

“Administrative Agent”:  JPMorgan Chase Bank, N.A., together with its
affiliates, as the arranger of the Revolving Commitments and as the
administrative agent for the Lenders under this Agreement and the other Loan
Documents, together with any of its successors.

“Affected Foreign
Currency”:  as defined in Section
2.13(c).

“Affiliate”:  as to any Person, any other Person that,
directly or indirectly, is in control of, is controlled by, or is under common
control with, such Person.  For purposes
of this definition, “control” of a Person means the power, directly or
indirectly, either to (a) vote 10% or more of the securities having ordinary
voting power for the election of directors (or persons performing similar
functions) of such Person or (b) direct or cause the direction of the
management and policies of such Person, whether by contract or otherwise.

“Agents”:  the collective reference to the Syndication
Agent, the Co-Documentation Agents and the Administrative Agent.

“Aggregate Exposure”:  with respect to any Lender at any time, an
amount equal to the amount of such Lender’s Revolving Commitment (including any
Swingline Commitment) then in effect or, if the Revolving Commitments have been
terminated, the amount of such Lender’s Revolving Extensions of Credit then
outstanding.

 

“Aggregate Exposure
Percentage”:  with respect to any
Lender at any time, the ratio (expressed as a percentage) of such Lender’s
Aggregate Exposure at such time to the Aggregate Exposure of all Lenders at
such time.

“Agreement”:  as defined in the preamble hereto.

“Agreement Currency”:  as defined in Section 2.21(b).

“Applicable Margin”:  for any day, with respect to any ABR Loan or
Eurodollar Loan, or with respect to the facility fees payable hereunder, as the
case may be, the applicable rate per annum set forth below under the caption, “
Applicable Margin for Eurodollar Loans”, “ Applicable Margin for ABR Loans” or “Facility
Fee Rate”, as the case may be, based upon the Consolidated Leverage Ratio as of
the most recent determination thereof:

	
  Category

  	
   

  	
  Consolidated

  Leverage Ratio

  	
   

  	
  Applicable Margin for

  Eurodollar Loans

  	
   

  	
  Applicable Margin

  for ABR Loans

  	
   

  	
  Facility Fee Rate

  	
   

  	
  Effective Drawn

  Costs

  	
   

  
	
  1

  	
   

  	
  31.75x

  	
   

  	
  0.70

  	
  %

  	
  0

  	
  %

  	
  0.175

  	
  %

  	
  0.875

  	
  %

  
	
  2

  	
   

  	
  31.00x but <1.75x

  	
   

  	
  0.60

  	
  %

  	
  0

  	
  %

  	
  0.15

  	
  %

  	
  0.75

  	
  %

  
	
  3

  	
   

  	
  <1.00x

  	
   

  	
  0.50

  	
  %

  	
  0

  	
  %

  	
  0.125

  	
  %

  	
  0.625

  	
  %

  

For
purposes of the foregoing, changes in the Applicable Margin resulting from
changes in the Consolidated Leverage Ratio shall become effective on the date
that is three Business Days after the date on which financial statements are
delivered to the Lenders pursuant to Section 5.1 and shall remain in effect
until the next change to be effected pursuant to this paragraph;  If any financial statements referred to above
are not delivered within the time periods specified in Section 5.1, then, until
the date that is three Business Days after the date on which such financial
statements are delivered, the Consolidated Leverage Ratio shall be deemed to be
in Category 1.  In addition, at all times
while an Event of Default shall have occurred and be continuing, the
Consolidated Leverage Ratio shall be deemed to be in Category 1.

“Assignee”:  as defined in Section 9.6(b).

“Assignment and
Assumption”:  an Assignment and
Assumption entered into by a Lender and an Assignee (with the consent of any
party whose consent is required by Section 9.6), and accepted by the
Administrative Agent,, substantially in the form of Exhibit C.

“Available Revolving
Commitment”:  as to any Lender at any
time, an amount equal to the excess, if any, of (a) such Lender’s Revolving
Commitment then in effect over (b) such Lender’s Revolving Extensions of
Credit then outstanding.

“Benefited Lender”:  as defined in Section 9.7(a).

“Board”:  the Board of Governors of the Federal Reserve
System of the United States (or any successor).

“Borrower”:  as defined in the preamble hereto.

“Borrowing Date”:  any Business Day specified by the Borrower as
a date on which the Borrower requests the Lenders to make Revolving Loans
hereunder.

 2
 

 

“Business”:  as defined in Section 3.16(b).

“Business Day”:  a day other than a Saturday, Sunday or other
day on which commercial banks in New York City are authorized or required by
law to close, provided, that with respect to notices and determinations
in connection with, and payments of principal and interest on, Eurodollar
Loans, such day is also a day for trading by and between banks in Dollar
deposits in the interbank eurodollar market.; provided, further,
when used in connection with Eurodollar Loans denominated in Euros, the term “Business
Day” shall also exclude any day on which commercial banks in London are
authorized or required by law to close and any day on which the Trans-European
Automated Real-Time Gross Settlement Express Transfer System (TARGET) (or, if
such clearing system ceases to be operative, such other clearing system (if
any) determined by the Administrative Agent to be a suitable replacement) is
not open for settlement of payment in Euros.

“Calculation Date”:  means (a) the second Business Day preceding
each date on which a Multicurrency Loan is to be made and (b) the last Business
Day of each calendar quarter unless, during the five Business Days period prior
to such Business Day of such calendar quarter, a Calculation Date occurred
pursuant to clause (a) of this definition .

“Capital Lease
Obligations”:  as to any Person, the
obligations of such Person to pay rent or other amounts under any lease of (or
other arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP
and, for the purposes of this Agreement, the amount of such obligations at any
time shall be the capitalized amount thereof at such time determined in
accordance with GAAP.

“Capital Stock”:  any and all shares, interests, participations
or other equivalents (however designated) of capital stock of a corporation,
any and all equivalent ownership interests in a Person (other than a
corporation) and any and all warrants, rights or options to purchase any of the
foregoing.

“Cash Equivalents”:  (a) cash equivalents, short-term investments
and long-term marketable securities characterized as such on the Borrower’s
consolidated balance sheet; and (b) other investments made by the Borrower in
accordance with such written investment policies as are approved by the
Borrower’s board of directors, copies of which shall be provided to the
Administrative Agent.

“Change in Control”:  (a) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person or group (within the
meaning of the Securities Exchange Act of 1934 and the rules of the SEC
thereunder as in effect on the date hereof), of Capital Stock representing more
than 35% of the aggregate ordinary voting power represented by the issued and
outstanding Equity Interests of the Borrower; (b) occupation of a majority of
the seats (other than vacant seats) on the board of directors of the Borrower
by Persons who were neither (i) nominated by the board of directors of the
Borrower nor (ii) appointed by directors so nominated; or (c) a “change in
control” (or any other defined term having a similar purpose) as defined in the
documents governing any other Indebtedness of the Borrower or its Subsidiaries
the outstanding principal amount of which exceeds in the aggregate $15,000,000.

“Closing Date”:  the date on which the conditions precedent
set forth in Section 4.1 shall have been satisfied, which date is October 20,
2006.

“Code”:  the Internal Revenue Code of 1986, as amended
from time to time.

 3
 

 

“Commonly Controlled
Entity”:  an entity, whether or not
incorporated, that is under common control with the Borrower within the meaning
of Section 4001 of ERISA or is part of a group that includes the Borrower and
that is treated as a single employer under Section 414 of the Code.

“Confidential Information
Memorandum”:  the Confidential
Information Memorandum dated September 2006 and furnished to certain Lenders.

“Consolidated EBITDA”:  for any period, the consolidated net income
(or loss) of the Borrower and its Subsidiaries for such period, determined on a
consolidated basis in accordance with GAAP, plus, without duplication
and to the extent reflected as a charge in the statement of such consolidated
net income for such period, the sum of (a) income tax expense, (b) interest
expense, amortization or writeoff of debt discount and debt issuance costs and
commissions, discounts and other fees and charges associated with Indebtedness
(including the Revolving Loans), (c) depreciation and amortization expense, (d)
amortization of intangibles and organization costs, (e) non-cash amortization
of deferred stock compensation, (f) non-cash expenses related to stock-based
compensation, (g) non-cash in-process research and development expense
and (h) any extraordinary or non-recurring non-cash expenses or losses
(including, whether or not otherwise includable as a separate item in the
statement of such consolidated net income for such period, non-cash losses on
sales of assets outside of the ordinary course of business), minus, (x)
to the extent included in the statement of such consolidated net income for
such period, the sum of (i) interest income, (ii) any extraordinary, unusual or
non-recurring income or gains (including, whether or not otherwise includable
as a separate item in the statement of such consolidated net income for such
period, gains on the sales of assets outside of the ordinary course of
business), (iii) income tax credits (to the extent not netted from income tax
expense) and (iv) any other non-cash income and (y) any cash payments made during
such period in respect of items described in clause (e) above subsequent to the
fiscal quarter in which the relevant non-cash expenses or losses were reflected
as a charge in the statement of consolidated net income, all as determined on a
consolidated basis; provided, to the extent the Borrower makes any
acquisition of an entity or line of business that would be a “significant
subsidiary” as defined in Rule 1-02 of Regulation S-X promulgated by the SEC (a
“Material Acquisition”) or Disposition of such an entity or line of
business (a “Material Disposition”), “Consolidated EBITDA” shall
be calculated after giving pro forma effect to include or exclude, as
appropriate, any amounts attributable to the acquired or disposed of entity or
line of business as if the relevant transaction had been consummated at the
beginning of the period of four full fiscal quarters immediately prior to such
acquisition or disposal.

“Consolidated Leverage
Ratio”:  as at the last day of any
period of four consecutive fiscal quarters of the Borrower, the ratio of (a)
Consolidated Total Debt on such day to (b) Consolidated EBITDA for such period.

“Consolidated Total Debt”:  at any date, the aggregate principal amount
of all Indebtedness of the Borrower and its Subsidiaries at such date,
determined on a consolidated basis in accordance with GAAP.

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

“Default”:  any of the events specified in
Section 7, whether or not any requirement for the giving of notice, the
lapse of time, or both, has been satisfied.

 4
 

 

“Disposition”:  with respect to any property, any sale,
lease, sale and leaseback, assignment, conveyance, transfer or other
disposition thereof.  The terms “Dispose”
and “Disposed of” shall have correlative meanings.

“Dollar Equivalent”:  at any time as to any amount denominated in a
Foreign Currency, the equivalent amount in Dollars as determined by the
Administrative Agent at such time on the basis of the Exchange Rate for the
purchase of Dollars with such Foreign Currency on the most recent Calculation
Date for such Foreign Currency.

“Dollars” and “$”:  dollars in lawful currency of the United
States.

“Domestic Subsidiary”:  any Subsidiary of the Borrower organized
under the laws of any jurisdiction within the United States.

“Environmental Laws”:  any and all foreign, Federal, state, local or
municipal laws, rules, orders, regulations, statutes, ordinances, codes,
decrees, requirements of any Governmental Authority or other Requirements of
Law (including common law) regulating, relating to or imposing liability or
standards of conduct concerning protection of human health or the environment,
as now or may at any time hereafter be in effect, in each case as is applicable
to the Borrower, any Subsidiary or any of their respective real property.

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

“Eurocurrency Reserve
Requirements”:  for any day as
applied to a Eurodollar Loan, the aggregate (without duplication) of the
maximum rates (expressed as a decimal fraction) of reserve requirements in
effect on such day (including basic, supplemental, marginal and emergency
reserves) under any regulations of the Board or other Governmental Authority
having jurisdiction with respect thereto dealing with reserve requirements
prescribed for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board) maintained by a member bank of the
Federal Reserve System.

“Eurodollar Base Rate”:  with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, the rate per annum determined on the
basis of the rate for deposits in Dollars for a period equal to such Interest
Period commencing on the first day of such Interest Period appearing on Page
3750 of the Telerate screen as of 11:00 A.M., London time, two Business Days
prior to the beginning of such Interest Period. 
In the event that such rate does not appear on Page 3750 of the Telerate
screen (or otherwise on such screen), the “Eurodollar Base Rate” shall
be determined by reference to such other comparable publicly available service
for displaying eurodollar rates as may be selected by the Administrative Agent
or, in the absence of such availability, by reference to the rate at which the
Administrative Agent is offered Dollar deposits at or about 11:00 A.M., New
York City time, two Business Days prior to the beginning of such Interest
Period in the interbank eurodollar market where its eurodollar and foreign
currency and exchange operations are then being conducted for delivery on the
first day of such Interest Period for the number of days comprised therein.

“Eurodollar Loans”:  Revolving Loans the rate of interest
applicable to which is based upon the Eurodollar Rate.

“Eurodollar Rate”:  with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, a rate per annum determined for such
day in accordance with the following formula (rounded upward, if necessary, to
the nearest 1/100th of 1%):

 5

 

	
  Eurodollar Base Rate

  
	
  1.00 —
  Eurocurrency Reserve Requirements

  

 

“Eurodollar Tranche”:  the collective reference to Eurodollar Loans
denominated in the same currency the then current Interest Periods with respect
to all of which begin on the same date and end on the same later date (whether
or not such Revolving Loans shall originally have been made on the same day).

“Euros”:  the single currency of participating member
states of the European Monetary Union introduced in accordance with the
provisions of Article 109(1)4 of the Treaty of Rome of March 25, 1957 (as
amended by the Single European Act 1986 and the Maastricht Treaty (which was
signed at Maastricht on February 7, 1992 and came into force on November 1,
1993) as amended from time to time) and as referred to in legislative measures
of the European Union for the introduction of, changeover to or operating of
the euro in one or more member states.

“Event of Default”:  any of the events specified in Section 7, provided
that any requirement for the giving of notice, the lapse of time, or both, has
been satisfied.

“Exchange Rate”:  on any day, with respect to any currency, the
rate at which such currency may be exchanged into any other currency, as set
forth at approximately 11:00 A.M., London time, on such date on the Reuters
World Currency Page for such currency. 
In the event that such rate does not appear on any Reuters World
Currency Page, the Exchange Rate shall be determined by reference to such other
publicly available service for displaying exchange rates as may be selected by
the Administrative Agent, or, in the event no such service is selected, such
Exchange Rate shall instead be the arithmetic average of the spot rates of
exchange of the Administrative Agent in the market where its foreign currency
exchange operations in respect of such currency are then being conducted, at or
about 10:00 A.M., local time, on such date for the purchase of the relevant
currency for delivery two Business Days later; provided that if at the
time of any such determination, for any reason, no such spot rate is being
quoted, the Administrative Agent, after consultation with the Borrower, may use
any reasonable method it deems appropriate to determine such rate, and such
determination shall be presumed correct absent manifest error; provided,
further, that in any event, the Administrative Agent shall provide the
Borrower with reasonable details of the source for such rate.

“Existing Credit
Agreement”:  the Amended and Restated
Credit Agreement, dated as of April 28, 2004, among the Borrower, JPMorgan
Chase Bank, N.A., as administrative agent, and the other agents and lenders
parties thereto.

“Federal Funds Effective
Rate”:  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 for any day that is a Business Day, the
average of the quotations for the day of such transactions received by JPMorgan
Chase Bank, N.A. from three federal funds brokers of recognized standing
selected by it.

“Foreign Currency”:  Euros and Yen.

“Foreign Currency Equivalent”:  at any time as to any amount denominated in
Dollars, the equivalent amount in the relevant Foreign Currency as determined
by the Administrative Agent at such time on the basis of the Exchange Rate for
the purchase of such Foreign Currency with Dollars on the date of determination
thereof.

 6
 

 

“Funding Office”:  the office of the Administrative Agent
specified in Section 10.2 or such other office as may be specified from time to
time by the Administrative Agent as its funding office by written notice to the
Borrower and the Lenders.

“GAAP”:  generally accepted accounting principles in
the United States as in effect from time to time, except that for purposes of
Section 6.1, GAAP shall be determined on the basis of such principles in effect
on the date hereof and consistent with those used in the preparation of the
most recent audited financial statements referred to in Section 3.1.  In the event that any “Accounting Change” (as
defined below) shall occur and such change results in a change in the method of
calculation of financial covenants, standards or terms in this Agreement, then
the Borrower and the Administrative Agent agree to enter into negotiations in
order to amend such provisions of this Agreement so as to reflect equitably
such Accounting Changes with the result that the criteria for evaluating the
Borrower’s financial condition shall be the same after such Accounting Changes
as if such Accounting Changes had not been made.  Until such time as such an amendment shall
have been executed and delivered by the Borrower, the Administrative Agent and
the Required Lenders, all financial covenants, standards and terms in this
Agreement shall continue to be calculated or construed as if such Accounting
Changes had not occurred.  “Accounting
Changes” refers to changes in accounting principles required by the
promulgation of any rule, regulation, pronouncement or opinion by the Financial
Accounting Standards Board of the American Institute of Certified Public
Accountants or, if applicable, the SEC.

“Governmental Authority”:  any nation or government, any state or other
political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative functions of or
pertaining to government, any securities exchange and any self-regulatory
organization (including the National Association of Insurance Commissioners).

“Group Members”:  the collective reference to the Borrower and
its Subsidiaries.

“Guarantee Agreement”:  the Guarantee Agreement to be executed and
delivered by each Subsidiary Guarantor, substantially in the form of Exhibit A.

“Guarantee”: the
guarantee of the Subsidiary Borrower Obligations provided by the Borrower
pursuant to Section 9.

“Guarantee Obligation”:  as to any Person (the “guaranteeing person”),
any obligation, including a reimbursement, counterindemnity or similar
obligation, of the guaranteeing person that guarantees or in effect guarantees,
or which is given to induce the creation of a separate obligation by another
Person (including any bank under any letter of credit) that guarantees or in
effect guarantees, any Indebtedness or other obligations (the “primary
obligations”) of any other third Person (the “primary obligor”) in
any manner, whether directly or indirectly, including any obligation of the
guaranteeing person, whether or not contingent, (i) to purchase any such
primary obligation or any property constituting direct or indirect security
therefor, (ii) to advance or supply funds (1) for the purchase or payment of
any such primary obligation or (2) to maintain working capital or equity
capital of the primary obligor or otherwise to maintain the net worth or
solvency of the primary obligor, (iii) to purchase property, securities or
services primarily for the purpose of assuring the owner of any such primary
obligation of the ability of the primary obligor to make payment of such
primary obligation or (iv) otherwise to assure or hold harmless the owner of
any such primary obligation against loss in respect thereof; provided, however,
that the term Guarantee Obligation shall not include endorsements of
instruments for deposit or collection in the ordinary course of business.  The amount of any Guarantee Obligation of any
guaranteeing person shall be deemed to be the lower of (a) an amount equal to
the stated or determinable amount of the primary obligation in respect of which
such Guarantee Obligation is

 7
 

 

made and (b) the maximum
amount for which such guaranteeing person may be liable pursuant to the terms
of the instrument embodying such Guarantee Obligation, unless such primary
obligation and the maximum amount for which such guaranteeing person may be
liable are not stated or determinable, in which case the amount of such
Guarantee Obligation shall be such guaranteeing person’s maximum reasonably
anticipated liability in respect thereof as determined by the Borrower in good
faith.

“Increased Revolving
Commitment Activation Notice”:  a
notice substantially in the form of Exhibit E-2.

“Increased Revolving
Commitment Closing Date”:  any
Business Day designated as such in an Increased Revolving Commitment Activation
Notice.

“Indebtedness”:  of any Person at any date, without
duplication, (a) all indebtedness of such Person for borrowed money, (b) all
obligations of such Person for the deferred purchase price of property or
services (other than current trade payables incurred in the ordinary course of
such Person’s business), (c) all obligations of such Person evidenced by notes,
bonds, debentures or other similar instruments, (d) all indebtedness created or
arising under any conditional sale or other title retention agreement with
respect to property acquired by such Person (even though the rights and
remedies of the seller or lender under such agreement in the event of default
are limited to repossession or sale of such property), (e) all Capital Lease
Obligations of such Person, (f) all obligations of such Person, contingent or
otherwise, as an account party or applicant under or in respect of acceptances,
letters of credit, surety bonds or similar arrangements, (g) the liquidation
value of all redeemable preferred Capital Stock of such Person, (h) all
Guarantee Obligations of such Person in respect of obligations of the kind
referred to in clauses (a) through (g) above, (i) all obligations of the kind
referred to in clauses (a) through (h) above secured by (or for which the
holder of such obligation has an existing right, contingent or otherwise, to be
secured by) any Lien on property (including accounts and contract rights) owned
by such Person, whether or not such Person has assumed or become liable for the
payment of such obligation (provided that, if such Indebtedness of
others is non-recourse to the credit of such Person, then the amount of
Indebtedness ascribed to such Person shall not exceed the fair market value of
the property securing such Indebtedness of others), and (j) for the purposes of
Section 7.1(e) only, all obligations of such Person in respect of Swap Agreements.  The Indebtedness of any Person shall include
the Indebtedness of any other entity (including any partnership in which such
Person is a general partner) to the extent such Person is liable therefor as a
result of such Person’s ownership interest in or other relationship with such
entity, except to the extent the terms of such Indebtedness expressly provide
that such Person is not liable therefor.

“Insolvency”:  with respect to any Multiemployer Plan, the
condition that such Plan is insolvent within the meaning of Section 4245 of
ERISA.

“Insolvent”:  pertaining to a condition of Insolvency.

“Intellectual Property”:  the collective reference to all rights,
priorities and privileges relating to intellectual property, whether arising
under United States, multinational or foreign laws or otherwise, including
copyrights, copyright licenses, patents, patent licenses, trademarks, trademark
licenses, technology, know-how and processes, and all rights to sue at law or
in equity for any infringement or other impairment thereof, including the right
to receive all proceeds and damages therefrom.

“Interest Payment Date”:  (a) as to any ABR Loan (other than a
Swingline Loan), the last day of each March, June, September and December to
occur while such Revolving Loan is outstanding and the final maturity date of
such Revolving Loan, (b) as to any Eurodollar Loan having an Interest Period of
three months or less, the last day of such Interest Period, (c) as to any
Eurodollar Loan having

 8
 

 

an Interest Period longer than
three months, each day that is three months, or a whole multiple thereof, after
the first day of such Interest Period and the last day of such Interest Period,
(d) as to any Revolving Loan (other than any Revolving Loan that is an ABR Loan
or a Swingline Loan), the date of any repayment or prepayment made in respect
thereof and (e) as to any Swingline Loan, the day that such Loan is required to
be paid.

“Interest Period”:  as to any Eurodollar Loan, (a) initially, the
period commencing on the borrowing or conversion date, as the case may be, with
respect to such Eurodollar Loan and ending one, two, three or six or (if
available to all Lenders) twelve months thereafter (or, until the Syndication
Date, 7 days thereafter), as selected by the Borrower or any applicable
Subsidiary Borrower in its notice of borrowing or notice of conversion, as the
case may be, given with respect thereto; and (b) thereafter, each period
commencing on the last day of the next preceding Interest Period applicable to
such Eurodollar Loan and ending one, two, three or six or (if available to all
Lenders) twelve months thereafter, as selected by the Borrower or any
applicable Subsidiary Borrower by irrevocable notice to the Administrative
Agent not later than 12:00 Noon, New York City time, in the case of Revolving
Loans denominated in Dollars, and 3:00 P.M., London time, in the case of
Multicurrency Loans, on the date that is three Business Days prior to the last
day of the then current Interest Period with respect thereto; provided that,
all of the foregoing provisions relating to Interest Periods are subject to the
following:

(i)            if any Interest Period 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)           the Borrower may not select an Interest Period that would
extend beyond the Revolving Termination Date; and

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

“Investments”:  as defined in Section 6.6.

“Joint Lead Arrangers”: 
J.P. Morgan Securities Inc. and Banc of America Securities LLC, each in
its capacity as a Joint Lead Arranger under this Agreement.

“Judgment Currency”:  as defined in Section 2.21(b).

“Lenders”:  as defined in the preamble hereto.  Unless the context otherwise requires, the
term “Lenders” includes the Swingline Lender.

“Lien”:  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 any conditional sale or other title retention agreement and any
capital lease having substantially the same economic effect as any of the
foregoing).

“Loan Documents”:  this Agreement, the Guarantee Agreement, the
Notes, each Joinder Agreement and any amendment, waiver, supplement or other modification
to any of the foregoing.

 9
 

 

“Loan Parties”:  each Group Member that is a party to a Loan
Document (including, for avoidance of doubt, each Subsidiary Borrower).

“Margin
Stock”:  as defined in Regulation U.

“Material Adverse Effect”:  a material adverse effect on (a) the
business, property, operations or financial condition of the Borrower and its
Subsidiaries taken as a whole or (b) the validity or enforceability of
this Agreement or any of the other Loan Documents or the rights or remedies of
the Administrative Agent or the Lenders hereunder or thereunder.

 “Multicurrency Loans”:  as defined in Section 2.1(c).

 “Multicurrency Sublimit”:  $150,000,000.

“Multiemployer Plan”:  a Plan that is a multiemployer plan as
defined in Section 4001(a)(3) of ERISA.

“New Lender”: 
as defined in Section 2.7(b).

“New Lender Supplement”:  as defined in Section 2.7(b).

“Non-Excluded Taxes”:  as defined in Section 2.16(a).

“Non-U.S. Lender”:  as defined in Section 2.16(d).

“Notes”:  the collective reference to any promissory
note evidencing Revolving Loans.

“Obligations”:  the unpaid principal of and interest on
(including interest accruing after the maturity of the Revolving Loans and
interest accruing after the filing of any petition in bankruptcy, or the
commencement of any insolvency, reorganization or like proceeding, relating to
the Borrower and any Subsidiary Borrower, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding) the
Revolving Loans and all other obligations and liabilities of the Borrower and
any Subsidiary Borrower to the Administrative Agent or to any Lender, whether
direct or indirect, absolute or contingent, due or to become due, or now
existing or hereafter incurred, which may arise under, out of, or in connection
with, this Agreement, any other Loan Document or any other document made,
delivered or given in connection herewith or therewith, whether on account of
principal, interest, reimbursement obligations, fees, indemnities, costs,
expenses (including all reasonable fees, charges and disbursements of outside
counsel to the Administrative Agent or to any Lender that are required to be
paid by the Borrower and any Subsidiary Borrower pursuant hereto) or otherwise.

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

“Participant”:  as defined in Section 10.6(c).

“PBGC”:  the Pension Benefit Guaranty Corporation
established pursuant to Subtitle A of Title IV of ERISA (or any successor).

 10
 

 

“Person”:  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”:  at a particular time, any employee benefit
plan that is covered by ERISA and in respect of which the Borrower 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.

“Properties”:  as defined in Section 3.16(a).

“Refunded Swingline Loans”:  as defined in Section 2.4(b).

“Register”:  as defined in Section 10.6(b).

“Regulation U”:  Regulation U of the Board as in effect from
time to time.

“Reorganization”:  with respect to any Multiemployer Plan, the
condition that such plan is in reorganization within the meaning of Section
4241 of ERISA.

“Reportable Event”:  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 subsections .27, .28, .29, .30, .31, .32, .34 or .35 of
PBGC Reg. § 4043.

“Required Lenders”:  at any time, the holders of more than 50% of
the Total Revolving Commitments then in effect or, if the Revolving Commitments
have been terminated, the Total Revolving Extensions of Credit then outstanding.

“Requirement of Law”:  as to any Person, the Certificate of
Incorporation and By-Laws or other organizational or governing documents
of such Person, and any 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 property or to which such Person
or any of its property is subject.

“Responsible Officer”:  the chief executive officer, president, chief
financial officer, senior vice president or vice president of the Borrower, but
in any event, with respect to financial matters, the chief financial officer,
treasurer or controller of the Borrower.

“Restricted Payments”:  collectively, the declaration or payment of
any dividend (other than dividends payable solely in common stock of the Person
making such dividend) on, or the making of any payment on account of, or the
setting apart of assets for a sinking or other analogous fund for, the
purchase, redemption, defeasance, retirement or other acquisition of, any
Capital Stock of any Group Member, whether now or hereafter outstanding, or the
making of any other distribution in respect thereof, either directly or
indirectly, whether in cash or property or in obligations of any Group Member.

“Revolving Commitment”:  as to any Lender, the obligation of such
Lender to make Revolving Loans (including Multicurrency Loans) and participate
in Swingline Loans in an aggregate principal amount not to exceed the amount
set forth under the heading “Revolving Commitment” opposite such Lender’s name
on Schedule 1.1A or in the Assignment and Assumption pursuant to which such
Lender became a party hereto, as the same may be changed from time to time
pursuant to the terms hereof.  The
original amount of the Total Revolving Commitments is $300,000,000.

 11
 

 

“Revolving Commitment
Period”:  the period from and
including the Closing Date to the Revolving Termination Date.

“Revolving Extensions of
Credit”:  as to any Lender at any
time, an amount equal to the aggregate principal amount of all Revolving Loans
(or the Dollar Equivalent thereof in the case of Multicurrency Loans) held by
such Lender then outstanding.

“Revolving Loans”:  as defined in Section 2.1(a).

“Revolving Percentage”:  as to any Lender at any time, the percentage
which such Lender’s Revolving Commitment then constitutes of the Total
Revolving Commitments or, at any time after the Revolving Commitments shall
have expired or terminated, the percentage which the aggregate principal amount
of such Lender’s Revolving Loans then outstanding constitutes of the aggregate
principal amount of the Revolving Loans then outstanding.

“Revolving Termination
Date”:  October 20, 2011.

“SEC”:  the Securities and Exchange Commission, any
successor thereto and any analogous United States federal Governmental
Authority.

“Significant Subsidiary”:
at any time, a Domestic Subsidiary of the Borrower that would be a “significant
subsidiary” as defined in Rule 1-02 of Regulation S-X promulgated by the SEC; provided
that at no time may Domestic Subsidiaries of the Borrower that are not
Significant Subsidiaries hold, in the aggregate, more than 20% of (a) the total
assets of the Borrower and its Subsidiaries consolidated as of the end of the
most recently completed fiscal year or the Borrower or (b) the income of the
Borrower and its Subsidiaries consolidated for the most recently completed
fiscal year of the Borrower from continuing operations before income taxes,
extraordinary items and the cumulative effect of a change in accounting
principles.

“Single Employer Plan”:  any Plan that is covered by Title IV of
ERISA, but that is not a Multiemployer Plan.

“Solvent”:  when used with respect to any Person, means
that, as of any date of determination, (a) the amount of the “present fair saleable
value” of the assets of such Person will, as of such date, exceed the amount of
all “liabilities of such Person, contingent or otherwise”, as of such date, as
such quoted terms are determined in accordance with applicable federal and
state laws governing determinations of the insolvency of debtors, (b) the
present fair saleable value of the assets of such Person will, as of such date,
be greater than the amount that will be required to pay the liability of such
Person on its debts as such debts become absolute and matured considering all
financing alternatives and potential asset sales reasonably available to such
Person, (c) such Person will not have, as of such date, an unreasonably small
amount of capital with which to conduct its business, and (d) such Person will
be able to pay its debts as they mature. 
For purposes of this definition, (i) “debt” means liability on a “claim”,
and (ii) “claim” means any (x) right to payment, whether or not such a right is
reduced to judgment, liquidated, unliquidated, fixed, contingent, matured,
unmatured, disputed, undisputed, legal, equitable, secured or unsecured or (y)
right to an equitable remedy for breach of performance if such breach gives
rise to a right to payment, whether or not such right to an equitable remedy is
reduced to judgment, fixed, contingent, matured or unmatured, disputed,
undisputed, secured or unsecured. For purposes of this definition, the amount
of any contingent liability at any time shall be computed as the amount that,
in light of all of the facts and circumstances existing at such time,
represents the amount that can reasonably be expected to become an actual or
matured liability.

 12
 

 

“Subsidiary”:  as to any Person, 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 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.  Unless otherwise qualified, all references to
a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a
Subsidiary or Subsidiaries of the Borrower.

“Subsidiary Borrower”:
any Subsidiary of the Borrower that becomes a party hereto pursuant to Section
10.1(b)(i) until such time as such Subsidiary Borrower is removed as a party
hereto pursuant to Section 10.1(b)(ii).

“Subsidiary Borrower Obligations” shall mean the Obligations of
any Subsidiary Borrower.

“Subsidiary Guarantor”:  each Significant Subsidiary.

“Swap Agreement”:  any agreement
with respect to any swap, forward, future or derivative transaction or option
or similar agreement involving, or settled by reference to, one or more rates,
currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk
or value or any similar transaction or any combination of these transactions; provided
that no phantom stock or similar plan providing for payments only on
account of services provided by current or former directors, officers,
employees or consultants of the Borrower or any of its Subsidiaries shall be a “Swap
Agreement”.

“Swingline
Commitment”:  the obligation of the
Swingline Lender to make Swingline Loans pursuant to Section 2.3 in an aggregate
principal amount not to exceed $15,000,000.

“Swingline
Lender”:  JPMorgan Chase Bank, N.A.,
in its capacity as Lender of Swingline Loans hereunder.

“Swingline
Loan”:  a Revolving Loan made
pursuant to Section 2.3.

“Swingline
Participation Amount”:  as defined in
Section 2.4.

“Syndication Agent”:  as defined in the preamble hereto.

 “Syndication
Date”: the date of completion of the primary syndication of the
Revolving Commitments, as specified by the Joint Lead Arrangers in a written
notice to the Borrower.

“Total Revolving
Commitments”:  at any time, the
aggregate amount of the Revolving Commitments then in effect.

“Total Revolving
Extensions of Credit”:  at any time,
the aggregate amount of the Revolving Extensions of Credit of the Lenders
outstanding at such time.

“Transferee”:  any Assignee or Participant.

“Type”:  as to any Revolving Loan, its nature as an
ABR Loan or a Eurodollar Loan.

 13
 

 

“United States”:  the United States of America.

“Yen”:  the lawful currency of Japan.

1.2           Other Definitional Provisions.  (a) Unless otherwise specified therein, all
terms defined in this Agreement shall have the defined meanings when used in
the other Loan Documents or any certificate or other document made or delivered
pursuant hereto or thereto.

(b)  As used herein and in the other Loan
Documents, and any certificate or other document made or delivered pursuant
hereto or thereto, (i) accounting terms relating to any Group Member not
defined in Section 1.1 and accounting terms partly defined in Section 1.1, to
the extent not defined, shall have the respective meanings given to them under
GAAP, (ii) the words “include”, “includes” and “including” shall be deemed to
be followed by the phrase “without limitation”, (iii) the word “incur” shall be
construed to mean incur, create, issue, assume, become liable in respect of or
suffer to exist (and the words “incurred” and “incurrence” shall have
correlative meanings), (iv) the words “asset” and “property” shall be construed
to have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, Capital Stock, securities,
revenues, accounts, leasehold interests and contract rights, and (v) references
to agreements or other Contractual Obligations shall, unless otherwise specified,
be deemed to refer to such agreements or Contractual Obligations as amended,
supplemented, restated or otherwise modified from time to time.

(c)  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, Schedule and Exhibit references are to this Agreement unless otherwise
specified.

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

1.3           Currency Conversion.  (a)  
If more than one currency or currency unit are at the same time
recognized by the central bank of any country as the lawful currency of that
country, then (i) any reference in the Loan Documents to, and any obligations
arising under the Loan Documents in, the currency of that country shall be
translated into or paid in the currency or currency unit of that country
designated by the Administrative Agent and (ii) any translation from one
currency or currency unit to another shall be at the official rate of exchange
recognized by the central bank for conversion of that currency or currency unit
into the other, rounded up or down by the Administrative Agent as it deems
appropriate.

(b)  If a change in any currency of a country
occurs, this Agreement shall be amended (and each party hereto agrees to enter
into any supplemental agreement necessary to effect any such amendment) to the
extent that the Administrative Agent determines such amendment to be necessary
to reflect the change in currency and to put the Lenders in the same position,
so far as possible, that they would have been in if no change in currency had
occurred.

SECTION
2.   AMOUNT AND TERMS OF REVOLVING COMMITMENTS

2.1           Revolving Commitments.  (a) Subject to the terms and conditions
hereof, each Lender severally agrees to make revolving credit loans in Dollars
(together with the Swingline Loans and Multicurrency Loans, “Revolving Loans”)
to the Borrower and any Subsidiary Borrower from time to time during the
Revolving Commitment Period in an aggregate principal amount at any one time
outstanding that does not exceed the amount of such Lender’s Revolving
Commitment.  During the

 14
 

 

Revolving
Commitment Period the Borrower and any Subsidiary Borrower may use the
Revolving Commitments by borrowing, prepaying the Revolving Loans in whole or
in part, and reborrowing, all in accordance with the terms and conditions
hereof.  The Revolving Loans may from
time to time be Eurodollar Loans or ABR Loans, as determined by the Borrower
and any Subsidiary Borrower and notified to the Administrative Agent in
accordance with Sections 2.2 and 2.9.

(b)  The Borrower and any Subsidiary Borrower
shall repay all outstanding Revolving Loans made to it on the Revolving
Termination Date.

(c)  Subject to the terms and conditions hereof,
each Lender severally agrees, from time to time during the Revolving Commitment
Period, to make revolving credit loans denominated in one or more Foreign Currencies
(“Multicurrency Loans”) to the Borrower and any Subsidiary Borrower in an
aggregate principal amount (based on the Dollar Equivalent of such
Multicurrency Loans) at any one time outstanding which shall not exceed the
Multicurrency Sublimit.  The Borrower and
any Subsidiary Borrower shall not request and no Lender shall be required to
make any Multicurrency Loan if, after making such Multicurrency Loan (i) the
Total Revolving Extensions of Credit shall exceed the Total Revolving
Commitments then in effect or (ii) the Dollar Equivalent of the aggregate
outstanding Multicurrency Loans shall exceed the Multicurrency Sublimit.  During the Revolving Commitment Period, the
Borrower and any Subsidiary Borrower may borrow, prepay and reborrow
Multicurrency Loans, in whole or in part, all in accordance with the terms and
conditions hereof.  All Multicurrency
Loans shall be Eurodollar Loans.

2.2           Procedure for Revolving Loan
Borrowing.  (a)   The Borrower and any Subsidiary Borrower may
borrow under the Revolving Commitments during the Revolving Commitment Period
on any Business Day, provided that the Borrower and such Subsidiary
Borrower shall give the Administrative Agent irrevocable notice (which notice
must be received by the Administrative Agent prior to 12:00 Noon, New York City
time, (a) three Business Days prior to the requested Borrowing Date, in the
case of Eurodollar Loans, or (b) one Business Day prior to the requested
Borrowing Date, in the case of ABR Loans), specifying (i) the amount and Type
of Revolving Loans to be borrowed, (ii) the requested Borrowing Date and (iii)
in the case of Eurodollar Loans, the respective amounts of each such Type of
Revolving Loan and the respective lengths of the initial Interest Period
therefor; provided that prior to the Syndication Date, the Borrower or
the relevant Subsidiary Borrower may only select 7-day Interest Periods.  Each borrowing under the Revolving
Commitments shall be in an amount equal to (x) in the case of ABR Loans,
$1,000,000 or a whole multiple thereof (or, if the then aggregate Available
Revolving Commitments are less than $1,000,000, such lesser amount) and (y) in
the case of Eurodollar Loans, $5,000,000 or a whole multiple of $1,000,000 in
excess thereof; provided, that the Swingline Lender may request, on
behalf of the Borrower or the relevant Subsidiary Borrower, borrowings under
the Revolving Commitments that are ABR Loans in other amounts pursuant to
Section 2.4.  Upon receipt of any such
notice from the Borrower or the relevant Subsidiary Borrower, the
Administrative Agent shall promptly notify each Lender thereof.  Each Lender will make the amount of its pro
rata share of each borrowing available to the Administrative Agent for
the account of the Borrower or the relevant Subsidiary Borrower at the Funding
Office prior to 1:00 P.M., New York City time, on the Borrowing Date requested
by the Borrower or the relevant Subsidiary Borrower in funds immediately
available to the Administrative Agent. 
Such borrowing will then be made available to the Borrower or the
relevant Subsidiary Borrower by the Administrative Agent crediting the account
of the Borrower or such Subsidiary Borrower on the books of such office with
the aggregate of the amounts made available to the Administrative Agent by the
Lenders and in like funds as received by the Administrative Agent.

(b)  The Borrower and any Subsidiary Borrower may
borrow Multicurrency Loans during the Revolving Commitment Period on any
Business Day, provided that the Borrower and such Subsidiary Borrower
shall give the Administrative Agent irrevocable notice (which notice must be received
by the

 15
 

 

Administrative Agent prior
to 3:00 P.M., London time, three Business Days prior to the requested Borrowing
Date), specifying (i) the requested Borrowing Date, (ii) the respective amounts
of each Multicurrency Loan in each Foreign Currency and (iii) the respective
lengths of the initial Interest Period therefor; provided that prior to the Syndication Date, the Borrower or
the relevant Subsidiary Borrower may only select 7-day Interest Periods.  Each Multicurrency Loan shall be in an amount
equal to (x) in the case of Multicurrency Loans denominated in Euros, €1,000,000
or a whole multiple of €100,000 in excess thereof, and (y) in the case of
Multicurrency Loans denominated in Yen, Y100,000,000 or a whole multiple of
Y10,000,000 in excess thereof.  Upon
receipt of any such notice from the Borrower or the relevant Subsidiary
Borrower, the Administrative Agent shall promptly notify each Lender
thereof.  Each Lender will make the
amount of its pro  rata share of each borrowing available to the
Administrative Agent for the account of the Borrower or the relevant Subsidiary
Borrower at the Funding Office prior to 12:00 Noon, London time, in each case,
on the Borrowing Date requested by the Borrower or such Subsidiary Borrower in
funds immediately available in the relevant Foreign Currency to the
Administrative Agent.  Such borrowing
will then be made available to the Borrower or the relevant Subsidiary Borrower
by the Administrative Agent crediting the account of the Borrower or such
Subsidiary Borrower on the books of such office with the aggregate of the
amounts made available to the Administrative Agent by the Lenders and in like
funds as received by the Administrative Agent or by wire transfer of such
amounts to an account designated in writing by the Borrower or such Subsidiary
Borrower to the Administrative Agent in connection with the relevant borrowing.

2.3           Swingline Commitment.  (a) 
Subject to the terms and conditions set forth herein, the Swingline
Lender agrees to make a portion of the credit otherwise available to the
Borrower and any Subsidiary Borrower under the Revolving Commitments from time
to time during the Revolving Commitment Period by making swing line loans in
Dollars (“Swingline Loans”) to the Borrower and any Subsidiary Borrower;
provided that (i) the aggregate principal amount of Swingline Loans outstanding
at any time shall not exceed the Swingline Commitment then in effect
(notwithstanding that the Swingline Loans outstanding at any time, when
aggregated with the Swingline Lender’s other outstanding Revolving Loans, may
exceed the Swingline Commitment then in effect), (ii) the Borrower and any
Subsidiary Borrower shall not request, and the Swingline Lender shall not make,
any Swingline Loan if, after giving effect to the making of such Swingline
Loan, the aggregate amount of the Available Revolving Commitments would be less
than zero and (iii) Swingline Loans shall be available only in Dollars.  During the Revolving Commitment Period, the
Borrower and any Subsidiary Borrower may use the Swingline Commitment by
borrowing, repaying and reborrowing, all in accordance with the terms and
conditions hereof.

(b)  The Borrower shall repay, or cause any
Subsidiary Borrower to pay, to the Swingline Lender the then unpaid principal
amount of each Swingline Loan on the earlier of the Revolving Termination Date
and the first date after such Swingline Loan is made that is the 15th or last
day of a calendar month and is at least two Business Days after such Swingline
Loan is made; provided that on each date that a Revolving Loan is
borrowed, the Borrower shall repay, or cause any Subsidiary Borrower to pay,
all Swingline Loans then outstanding.

2.4           Procedure for Swingline Borrowing; Refunding of
Swingline Loans.  (a)  Whenever the Borrower or relevant Subsidiary
Borrower desires that the Swingline Lender make Swingline Loans it shall give
the Swingline Lender irrevocable telephonic notice confirmed promptly in
writing (which telephonic notice must be received by the Swingline Lender not
later than 1:00 P.M., New York City time, on the proposed Borrowing Date), specifying
(i) the amount to be borrowed and (ii) the requested Borrowing Date (which
shall be a Business Day during the Revolving Commitment Period).  Each borrowing under the Swingline Commitment
shall be in an amount equal to $500,000 or a whole multiple of $100,000 in
excess thereof.  Not later than 3:00
P.M., New York City time, on the Borrowing Date specified in a notice in
respect of Swingline Loans, the Swingline Lender shall make available to the

 16
 

 

Administrative
Agent at the Funding Office an amount in immediately available funds equal to
the amount of the Swingline Loan to be made by the Swingline Lender.  The Administrative Agent shall make the
proceeds of such Swingline Loan available to the Borrower or relevant
Subsidiary Borrower on such Borrowing Date by depositing such proceeds in the
account of the Borrower or relevant Subsidiary Borrower with the Administrative
Agent on such Borrowing Date in immediately available funds.

(b)  The Swingline Lender, at any time and from
time to time in its sole and absolute discretion may, on behalf of the Borrower
or relevant Subsidiary Borrower (which hereby irrevocably directs the Swingline
Lender to act on its behalf), on one Business Day’s notice given by the
Swingline Lender no later than 12:00 Noon, New York City time, request each
Lender to make, and each Lender hereby agrees to make, a Revolving Loan, in an
amount equal to such Lender’s Revolving Percentage of the aggregate amount of
the Swingline Loans (the “Refunded Swingline Loans”) outstanding on the
date of such notice, to repay the Swingline Lender.  Each Lender shall make the amount of such
Revolving Loan available to the Administrative Agent at the Funding Office in
immediately available funds, not later than 10:00 A.M., New York City time, one
Business Day after the date of such notice. 
The proceeds of such Revolving Loans shall be immediately made available
by the Administrative Agent to the Swingline Lender for application by the
Swingline Lender to the repayment of the Refunded Swingline Loans.  The Borrower or relevant Subsidiary Borrower
irrevocably authorizes the Swingline Lender to charge the Borrower’s or
relevant Subsidiary Borrower’s accounts with the Administrative Agent (up to
the amount available in each such account) in order to immediately pay the
amount of such Refunded Swingline Loans to the extent amounts received from the
Lenders are not sufficient to repay in full such Refunded Swingline Loans.

(c)  If prior to the time a Revolving Loan would
have otherwise been made pursuant to Section 2.4(b), one of the events
described in Section 7.1(f) shall have occurred and be continuing with respect
to the Borrower or any Subsidiary Borrower or if for any other reason, as
determined by the Swingline Lender in its sole discretion, Revolving Loans may
not be made as contemplated by Section 2.4(b), each Lender shall, on the date
such Revolving Loan was to have been made pursuant to the notice referred to in
Section 2.4(b), purchase for cash an undivided participating interest in the
then outstanding Swingline Loans by paying to the Swingline Lender an amount
(the “Swingline Participation Amount”) equal to (i) such Lender’s
Revolving Percentage times (ii) the sum of the aggregate principal
amount of Swingline Loans then outstanding that were to have been repaid with
such Revolving Loans.

(d)  Whenever, at any time after the Swingline
Lender has received from any Lender such Lender’s Swingline Participation
Amount, the Swingline Lender receives any payment on account of the Swingline
Loans, the Swingline Lender will distribute to such Lender its Swingline
Participation Amount (appropriately adjusted, in the case of interest payments,
to reflect the period of time during which such Lender’s participating interest
was outstanding and funded and, in the case of principal and interest payments,
to reflect such Lender’s pro  rata portion of such payment if such
payment is not sufficient to pay the principal of and interest on all Swingline
Loans then due); provided, however, that in the event that such
payment received by the Swingline Lender is required to be returned, such
Revolving Lender will return to the Swingline Lender any portion thereof
previously distributed to it by the Swingline Lender.

(e)  Each Revolving Lender’s obligation to make
the Loans referred to in Section 2.4(b) and to purchase participating interests
pursuant to Section 2.4(c) shall be absolute and unconditional and shall not be
affected by any circumstance, including (i) any setoff, counterclaim,
recoupment, defense or other right that such Revolving Lender or the Borrower
or any Subsidiary Borrower may have against the Swingline Lender, the Borrower,
any Subsidiary Borrower or any other Person for any reason whatsoever, (ii) the
occurrence or continuance of a Default or an Event of Default or the failure to
satisfy any of the other conditions specified in Section 5, (iii) any adverse
change in the condition (financial or

 17
 

 

otherwise) of the Borrower,
(iv) any breach of this Agreement or any other Loan Document by the Borrower,
any other Loan Party or any other Revolving Lender or (v) any other
circumstance, happening or event whatsoever, whether or not similar to any of
the foregoing.

2.5           Facility Fees, etc.  (a) 
The Borrower agrees to pay to the Administrative Agent for the account
of each Lender a facility fee, which shall accrue at the Applicable Margin on
the daily amount of the Revolving Commitment of such Lender (whether used or
unused) during the period from and including the Closing Date to but excluding
the date on which such Revolving Commitment terminates; provided that,
if such Lender continues to have any Revolving Loans after its Revolving
Commitment terminates, then such facility fee shall continue to accrue on the
daily amount of such Lender’s Revolving Loans from and including the date on
which its Revolving Commitment terminates to but excluding the date on which
such Lender ceases to have any Revolving Loans. 
Facility fees accrued through and including the last day of March, June,
September and December of each year shall be payable on the third Business Day
following such last day, commencing on the first such date to occur after the
date hereof; provided that all such fees shall be payable on the date on
which the Revolving Commitments terminate and any such fees accruing after the
date on which the Revolving Commitments terminate shall be payable on
demand.  All facility fees shall be
computed on the basis of a year of 360 days and shall be payable for the actual
number of days elapsed (including the first day but excluding the last day).

(b)  The Borrower agrees to pay to the
Administrative Agent the fees in the amounts and on the dates as set forth in
any fee agreements with the Administrative Agent and to perform any other
obligations contained therein.

2.6           Termination or Reduction of
Revolving Commitments.  The Borrower
shall have the right, upon not less than three Business Days’ notice to the
Administrative Agent, to terminate the Revolving Commitments or, from time to
time, to reduce the amount of the Revolving Commitments; provided that
no such termination or reduction of Revolving Commitments shall be permitted
if, after giving effect thereto, the Total Revolving Extensions of Credit would
exceed the Total Revolving Commitments. 
Any such reduction shall be in an amount equal to $1,000,000, or a whole
multiple of $500,000 in excess thereof, and shall reduce permanently the
Revolving Commitments then in effect. 
Any reduction of the Total Commitments to an amount below $150,000,000
shall result in an automatic dollar-for-dollar reduction of the Multicurrency
Sublimit.

2.7           Additional Revolving Commitments.

(a)
At any time after the Syndication Date and prior to the fourth anniversary of
the Closing Date, the Borrower and any one or more Lenders (including New
Lenders) may agree that such Lender(s) shall make, obtain or increase the
amount of their Revolving Commitments by executing and delivering to the
Administrative Agent an Increased Revolving Commitment Activation Notice
specifying the amount of such increase and the applicable Increased Revolving
Commitment Closing Date (which may be no later than the fourth anniversary of
the Closing Date).  Notwithstanding the
foregoing, (i) the aggregate amount of incremental Revolving Commitments
obtained pursuant to this Section 2.7(a) shall not exceed $150,000,000, (ii)
incremental Revolving Commitments may not be made, obtained or increased after
the occurrence and during the continuation of a Default or Event of Default,
including after giving effect to the incremental Revolving Commitments in
question, (iii) the increase effected pursuant to this paragraph shall be in a
minimum amount of at least $25,000,000 and (iv) no more than one Increased
Revolving Commitment Closing Date may be selected by the Borrower during the
term of this Agreement.  No Lender shall
have any obligation to participate in any increase described in this paragraph
unless it agrees to do so in its sole discretion.

 

 18

 

 

(b)
Any additional bank, financial institution or other entity which, with the
consent of the Borrower and the Administrative Agent (which consent shall not
be unreasonably withheld), elects to become a “Lender” under this Agreement in
connection with an increase described in Section 2.7(a) shall execute a New
Lender Supplement (each, a “New Lender Supplement”), substantially in
the form of Exhibit E-1, whereupon such bank, financial institution or other
entity (a “New Lender”) shall become a Lender for all purposes and to
the same extent as if originally a party hereto and shall be bound by and
entitled to the benefits of this Agreement.

(c)
On each Increased Revolving Commitment Closing Date on which there are
Revolving Loans outstanding, the New Lender(s) and/or Lender(s) that have
increased their Revolving Commitments shall make Revolving Loans, the proceeds
of which will be used to prepay the Revolving Loans of other Lenders, so that,
after giving effect thereto, the resulting Revolving Loans outstanding are
allocated among the Lenders in accordance with Section 2.14(a) based on the
respective Revolving Percentages of the Lenders after giving effect to such
Increased Revolving Commitment Closing Date.

2.8           Prepayments.  (a)  
The Borrower may at any time and from time to time prepay (or cause any
Subsidiary Borrower to prepay) the Revolving Loans (other than Multicurrency
Loans), in whole or in part, without premium or penalty, upon irrevocable
notice delivered to the Administrative Agent no later than 12:00 Noon, New York
City time, three Business Days prior thereto, in the case of Eurodollar Loans,
and no later than 12:00 Noon, New York City time, one Business Day prior
thereto, in the case of ABR Loans, which notice shall specify the date and
amount of prepayment and whether the prepayment is of Eurodollar Loans or ABR
Loans; provided, that if a Eurodollar Loan is prepaid on any day other
than the last day of the Interest Period applicable thereto, the Borrower shall
also pay (or cause any Subsidiary Borrower to pay) any amounts owing pursuant
to Section 2.17.  Upon receipt of any
such notice the Administrative Agent shall promptly notify each Lender
thereof.  If any such notice is given,
the amount specified in such notice shall be due and payable on the date
specified therein, together with (except in the case of ABR Loans and Swingline
Loans) accrued interest to such date on the amount prepaid.  Partial prepayments of Revolving Loans shall
be in an aggregate principal amount of $1,000,000 or a whole multiple of
$500,000 in excess thereof.  Partial
prepayments of Swingline Loans shall be in an aggregate principal amount of
$100,000 or a whole multiple thereof.

(b)  The Borrower may at any time and from time to
time prepay (or cause any Subsidiary Borrower to prepay) Multicurrency Loans,
in whole or in part, without premium or penalty, upon irrevocable notice (which
notice must be received by the Administrative Agent prior to 3:00 P.M., London
time, three Business Days before the date of prepayment) specifying the date
and amount of prepayment.  Upon receipt
of any such notice the Administrative Agent shall promptly notify each Lender
thereof.  If any such notice is given,
the amount specified in such notice shall be due and payable on the date
specified therein, together with any amounts payable pursuant to Section 2.17
and accrued interest to such date on the amount prepaid.  Partial prepayments of Multicurrency Loans
shall be in a minimum principal amount of (w) €1,000,000 or a whole multiple or
€100,000 in excess thereof, in the case of Multicurrency Loans denominated in
Euros, and (x) Y100,000,000 or a whole multiple or Y10,000,000 in excess
thereof, in the case of Multicurrency Loans denominated in Yen.

(c)  If, on any Calculation Date, (i) the
Total Revolving Extensions of Credit exceed the Total Revolving Commitments or
(ii) the Dollar Equivalent of
the Multicurrency Loans outstanding on such date exceeds 105% of the
Multicurrency Sublimit on such date, the Borrower shall, without notice or
demand, immediately repay (or cause any Subsidiary Borrower to pay)such of the
outstanding Revolving Loans in an aggregate principal amount such that, after
giving effect thereto, (x) the Total Revolving Extensions of Credit do
not exceed the Total Revolving Commitments and (y) the Dollar Equivalent of the Multicurrency Loans outstanding on such
date is equal to or less than the Multicurrency Sublimit on such date, together
with interest accrued to the date of such payment or prepayment on the
principal so

 19
 

 

prepaid and any amounts
payable under Section 2.17 in connection therewith.  The Borrower may, in lieu of prepaying
Multicurrency Loans in order to comply with this paragraph, deposit amounts in
the relevant Foreign Currencies in a Cash Collateral Account, for the benefit
of the Lenders, equal to the aggregate principal amount of Multicurrency Loans
required to be prepaid.  To the extent
that after giving effect to any prepayment of Revolving Loans required by this
paragraph, the Total Revolving Extensions of Credit at such time exceed the
Total Revolving Commitments at such time, the Borrower shall, without notice or
demand, immediately deposit in a Cash Collateral Account, for the benefit of
the Lenders, upon terms reasonably satisfactory to the Administrative Agent an
amount equal to the amount of such remaining excess.  The Administrative Agent shall apply any cash
deposited in any Cash Collateral Account (to the extent thereof) to repay
Multicurrency Loans at the end of the Interest Periods therefor; provided
that, (x) the Administrative Agent shall release to the Borrower from time to
time such portion of the amount on deposit in any Cash Collateral Account to
the extent such amount is not required to be so deposited in order for the
Borrower to be in compliance with this Section 2.8(c) and (y) the
Administrative Agent may so apply such cash at any time after the occurrence
and during the continuation of an Event of Default.  “Cash Collateral Account” means an
account specifically established by the Borrower with the Administrative Agent
for purposes of this Section 2.8(c) and hereby pledged to the Administrative
Agent and over which the Administrative Agent shall have exclusive dominion and
control, including the right of withdrawal for application in accordance with
this Section 2.8(c).

2.9           Conversion and Continuation
Options.  (a)  The Borrower and any Subsidiary Borrower may
elect from time to time to convert Eurodollar Loans denominated in Dollars to
ABR Loans by giving the Administrative Agent prior irrevocable notice of such
election no later than 12:00 Noon, New York City time, on the Business Day
preceding the proposed conversion date, provided that any such
conversion of Eurodollar Loans may only be made on the last day of an Interest
Period with respect thereto.  The
Borrower and any Subsidiary Borrower may elect from time to time to convert ABR
Loans to Eurodollar Loans denominated in Dollars by giving the Administrative
Agent prior irrevocable notice of such election no later than 12:00 Noon, New
York City time, on the third Business Day preceding the proposed conversion
date (which notice shall specify the length of the initial Interest Period
therefor), provided that no ABR Loan may be converted into a Eurodollar
Loan when any Event of Default has occurred and is continuing and the
Administrative Agent or the Required Lenders have determined in its or their
sole discretion not to permit such conversions. 
Upon receipt of any such notice the Administrative Agent shall promptly
notify each Lender thereof.

(b)  Any Eurodollar Loan may be continued as such
upon the expiration of the then current Interest Period with respect thereto by
the Borrower or relevant Subsidiary Borrower giving irrevocable notice to the
Administrative Agent, in accordance with the applicable provisions of the term “Interest
Period” set forth in Section 1.1, of the length of the next Interest Period to
be applicable to such Revolving Loans, provided that no Eurodollar Loan
denominated in Dollars may be continued as such when any Event of Default has
occurred and is continuing and the Administrative Agent has or the Required
Lenders have determined in its or their sole discretion not to permit such
continuations, and provided, further, that if the Borrower or
relevant Subsidiary Borrower shall fail to give any required notice as
described above in this paragraph or if such continuation is not permitted
pursuant to the preceding proviso such Revolving Loans denominated in Dollars
shall be automatically converted to ABR Loans on the last day of such then
expiring Interest Period and, if the Borrower or relevant Subsidiary Borrower
shall fail to give such notice of continuation of a Multicurrency Loan, such
Multicurrency Loan shall be automatically continued for an Interest Period of
one month.  Upon receipt of any such
notice the Administrative Agent shall promptly notify each relevant Lender
thereof.

2.10         Limitations on Eurodollar Tranches.  Notwithstanding anything to the contrary in
this Agreement, all borrowings, conversions and continuations of Eurodollar
Loans and all selections of Interest Periods shall be in such amounts and be
made pursuant to such elections so that, (a) after giving

 20
 

 

effect
thereto, the aggregate principal amount of the Eurodollar Loans comprising each
Eurodollar Tranche shall be equal to $5,000,000 or a whole multiple of
$1,000,000 in excess thereof and (b) no more than ten Eurodollar Tranches shall
be outstanding at any one time.

2.11         Interest Rates and Payment Dates.  (a)  Each
Eurodollar Loan shall bear interest for each day during each Interest Period
with respect thereto at a rate per annum equal to the Eurodollar Rate
determined for such day plus the Applicable Margin.

(b)  Each ABR Loan shall bear interest at a rate
per annum equal to the ABR plus the Applicable Margin.

(c)  Each Swingline Loan shall bear interest at a
rate per annum to be agreed upon on a case-by-case basis between the Swingline
Lender and the Borrower, provided that such rate per annum shall in no
event exceed the ABR plus the Applicable Margin.

(d)  (i) If all or a portion of the principal
amount of any Revolving Loan shall not be paid when due (whether at the stated
maturity, by acceleration or otherwise), such overdue amount shall bear
interest at a rate per annum equal to the rate that would otherwise be
applicable thereto pursuant to the foregoing provisions of this Section plus
2%, and (ii) if all or a portion of any interest payable on any Revolving Loan
or any facility fee or other amount payable hereunder shall not be paid when
due (whether at the stated maturity, by acceleration or otherwise), such
overdue amount shall bear interest at a rate per annum equal to the rate then
applicable to ABR Loans plus 2% (unless such overdue amount is
denominated in a Foreign Currency, in which case such overdue amount shall bear
interest of a rate per annum equal to the highest rate then applicable under
this Agreement to Multicurrency Loans denominated in such Foreign Currency plus
2%), in each case, with respect to clauses (i) and (ii) above, from the date of
such non-payment until such amount is paid in full (as well after as
before judgment).

(e)  Interest shall be payable in arrears on each
Interest Payment Date, provided that interest accruing pursuant to paragraph
(c) of this Section shall be payable from time to time on demand.

2.12         Computation of Interest and Fees.  (a) 
Interest and fees payable pursuant hereto shall be calculated on the
basis of a 360-day year for the actual days elapsed, except that, with respect
to ABR Loans the rate of interest on which is calculated on the basis of the
Prime Rate, the interest thereon shall be calculated on the basis of a 365- (or
366-, as the case may be) day year for the actual days elapsed.  The Administrative Agent shall as soon as
practicable notify the Borrower, the Subsidiary Borrowers and the Lenders of
each determination of a Eurodollar Rate. 
Any change in the interest rate on a Revolving Loan resulting from a
change in the ABR or the Eurocurrency Reserve Requirements shall become
effective as of the opening of business on the day on which such change becomes
effective.  The Administrative Agent
shall as soon as practicable notify the Borrower, the Subsidiary Borrowers and
the Lenders of the effective date and the amount of each such change in
interest rate.

(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, the Subsidiary Borrowers  and the Lenders in the absence of manifest
error.  The Administrative Agent shall,
at the request of the Borrower and any Subsidiary Borrower, deliver to the
Borrower and any Subsidiary Borrower a statement showing the quotations used by
the Administrative Agent in determining any interest rate pursuant to Section
2.11(a).

2.13         Inability to Determine Interest Rate.  If prior to the first day of any Interest
Period:

 21
 

 

(a)   the
Administrative Agent shall have determined in it reasonable judgment (which
determination shall be conclusive and binding upon the Borrower and any
Subsidiary Borrower) that, by reason of circumstances affecting the relevant
market, adequate and reasonable means do not exist for ascertaining the
Eurodollar Rate for such Interest Period, or

(b)   the Administrative
Agent shall have received notice from the Required Lenders that the Eurodollar
Rate determined or to be determined for such Interest Period will not
adequately and fairly reflect the cost to such Lenders (as conclusively
certified by such Lenders) of making or maintaining their affected Revolving
Loans during such Interest Period,

(c)   the
Administrative Agent determines (which determination shall be conclusive and
binding upon the Borrower and any Subsidiary Borrower) that deposits in the applicable
currency are not generally available, or cannot be obtained by the relevant
Lenders, in the applicable market (any Foreign Currency affected by the
circumstances described in clause (a), (b) or (c) is referred to as an “Affected
Foreign Currency”),

the Administrative Agent
shall give telecopy or telephonic notice thereof to the Borrower, any
Subsidiary Borrower and the Lenders as soon as practicable thereafter.  If such notice is given (x) pursuant to
clause (a) or (b) of this Section 2.13 in respect of Eurodollar Loans
denominated in Dollars, then (i) any Eurodollar Loans denominated in Dollars
requested to be made on the first day of such Interest Period shall be made as
ABR Loans, (ii) any ABR Loans that were to have been converted on the
first day of such Interest Period to Eurodollar Loans denominated in Dollars
shall be continued as ABR Loans and (iii) any outstanding Eurodollar Loans
denominated in Dollars shall be converted, on the last day of the then-current
Interest Period, to ABR Loans and (y) in respect of any Multicurrency Loans,
then (i) any Multicurrency Loans in an Affected Foreign Currency requested to
be made on the first day of such Interest Period shall not be made and (ii) any
outstanding Multicurrency Loans in an Affected Foreign Currency shall be due
and payable on the first day of such Interest Period.  Until such relevant notice has been withdrawn
by the Administrative Agent, no further Eurodollar Loans denominated in Dollars
or Multicurrency Loans in an Affected Foreign Currency shall be made or
continued as such, nor shall the Borrower or any Subsidiary Borrower have the
right to convert ABR Loans to Eurodollar Loans denominated in Dollars.  The Administrative Agent shall withdraw such
notice upon its determination that the event or events which gave rise to such
notice no longer exist.

2.14         Pro Rata Treatment and Payments.  (a)  
Each borrowing by the Borrower and any Subsidiary Borrower from the
Lenders hereunder, each payment by the Borrower on account of any facility fee and
any reduction of the Revolving Commitments of the Lenders shall be made pro
rata according to the respective Revolving Percentages of the Lenders.

(b)  Each payment (including each prepayment) by
the Borrower and any Subsidiary Borrower on account of principal of and
interest on the Revolving Loans shall be made pro  rata according
to the respective outstanding principal amounts of the Revolving Loans then
held by the Lenders.

(c)  All payments (including prepayments) to be
made by the Borrower or any Subsidiary Borrower hereunder, whether on account
of principal, interest, fees or otherwise, shall be made without setoff or
counterclaim and shall be made prior to 3:00 P.M., New York City time, on the
due date thereof to the Administrative Agent, for the account of the Lenders,
at the Funding Office, in Dollars and in immediately available funds (or, in
the case of principal or interest relating to Multicurrency Loans, prior to
3:00 P.M., London time, on the due date thereof to the Administrative Agent, for
the account of the Lenders, at its Funding Office, in the relevant Foreign
Currency and in immediately available funds). 
The Administrative Agent shall distribute such payments to the Lenders
promptly upon receipt in like funds as received.  If any payment hereunder (other than payments
on the Eurodollar Loans) becomes due and

 22
 

 

payable on a day other than
a Business Day, such payment shall be extended to the next succeeding Business
Day.  If any payment on a Eurodollar 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.  In the case of any extension of any
payment of principal pursuant to the preceding two sentences, interest thereon
shall be payable at the then applicable rate during such extension.

(d)  Unless the Administrative Agent shall have
been notified in writing by any Lender prior to a borrowing that such Lender
will not make the amount that would constitute its share of such borrowing
available to the Administrative Agent, the Administrative Agent may assume that
such Lender is making such amount available to the Administrative Agent, and
the Administrative Agent may, in reliance upon such assumption, make available
to the Borrower and any Subsidiary Borrower a corresponding amount.  If such amount is not made available to the
Administrative Agent by the required time on the Borrowing Date therefor, such
Lender shall pay to the Administrative Agent, on demand, (i) in the case of
amounts denominated in Dollars, such amount with interest thereon, at a rate
equal to the greater of (X) the Federal Funds Effective Rate and (Y) a rate
determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation, for the period until such Lender makes such
amount immediately available to the Administrative Agent or (ii) in the case of
amounts denominated in Foreign Currencies, such amount with interest thereon at
a rate determined by the Administrative Agent to be the cost to it of funding
such amount until such Lender makes such amount immediately available to the
Administrative Agent.  A certificate of
the Administrative Agent submitted to any Lender with respect to any amounts
owing under this paragraph shall be conclusive in the absence of manifest
error.  If such Lender’s share of such
borrowing is not made available to the Administrative Agent by such Lender
within three Business Days after such Borrowing Date, the Administrative Agent
shall also be entitled to recover (i) in the case of amounts denominated in
Dollars, such amount with interest thereon at the rate per annum applicable to
ABR Loans, on demand, from the Borrower and any Subsidiary Borrower or (ii) in
the case of amounts denominated in Foreign Currencies, such amount with
interest thereon at a rate determined by the Administrative Agent to be the cost
to it of funding such amount, on demand, from the Borrower and any Subsidiary
Borrower.  Nothing in this paragraph
shall be deemed to relieve any Lender from its obligation to fulfill its
Revolving Commitments hereunder or to prejudice any rights that the Borrower
and any Subsidiary Borrower may have against any Lender as a result of any
default by such Lender hereunder.

(e)  Unless the Administrative Agent shall have
been notified in writing by the Borrower or relevant Subsidiary Borrower prior
to the date of any payment due to be made by the Borrower or relevant
Subsidiary Borrower hereunder that the Borrower or relevant Subsidiary Borrower
will not make such payment to the Administrative Agent, the Administrative
Agent may assume that the Borrower or relevant Subsidiary Borrower is making
such payment, and the Administrative Agent may, but shall not be required to,
in reliance upon such assumption, make available to the Lenders their
respective pro  rata shares of a corresponding amount.  If such payment is not made to the
Administrative Agent by the Borrower or relevant Subsidiary Borrower within
three Business Days after such due date, the Administrative Agent shall be
entitled to recover, on demand, from each Lender to which any amount which was
made available pursuant to the preceding sentence, (i) in the case of amounts
denominated in Dollars, such amount with interest thereon at the rate per annum
equal to the daily average Federal Funds Effective Rate and (ii) in the case of
amounts denominated in Foreign Currencies, such amount with interest thereon at
a rate per annum determined by the Administrative Agent to be the cost to it of
funding such amount.  Nothing herein
shall be deemed to limit the rights of the Administrative Agent or any Lender
against the Borrower or relevant Subsidiary Borrower.

 23
 

 

2.15         Requirements of Law.  (a)  
If the adoption of or any change in any Requirement of Law or in the
interpretation 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:

(i)   shall
subject any Lender to any tax of any kind whatsoever with respect to this
Agreement or any Eurodollar Loan made by it, or change the basis of taxation of
payments to such Lender in respect thereof (except for Non-Excluded Taxes
covered by Section 2.16 and 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 that is not otherwise
included in the determination of the Eurodollar Rate; 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, by an amount that such Lender
reasonably deems to be material, of making, converting into, continuing or
maintaining Eurodollar Loans, or to reduce any amount receivable hereunder in
respect thereof, then, in any such case, the Borrower or relevant Subsidiary
Borrower shall promptly pay such Lender, upon its demand, any additional
amounts necessary to compensate such Lender for such increased cost or reduced
amount receivable.  If any Lender becomes
entitled to claim any additional amounts pursuant to this paragraph, it shall
promptly notify the Borrower or relevant Subsidiary Borrower (with a copy to
the Administrative Agent) of the event by reason of which it has become so
entitled, which notice shall include, if available, details reasonably
sufficient to establish the basis for such additional amounts payable and shall
be submitted to the Borrower or relevant Subsidiary Borrower within 120 days
after such Lender becomes aware of such fact.

(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 Governmental Authority made subsequent to the date
hereof 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
deemed by such Lender to be material, then from time to time, after submission
by such Lender to the Borrower (with a copy to the Administrative Agent) of a
written request therefor (such request shall include, if available, details
reasonably sufficient to establish the basis for such additional amounts payable
and shall be submitted to the Borrower within 120 days after it becomes aware
of such fact), the Borrower shall pay to such Lender such additional amount or
amounts as will compensate such Lender or such corporation for such reduction.

(c)  If any Governmental Authority of the
jurisdiction of any Foreign Currency (or any other jurisdiction in which the
funding operations of any Lender shall be conducted with respect to such
Foreign Currency) shall have in effect any reserve, liquid asset or similar
requirement with respect to any category of deposits or liabilities customarily
used to fund loans in such Foreign Currency, or by reference to which interest
rates applicable to loans in such Foreign Currency are determined, and the
result of such requirement shall be to increase the cost to such Lender of
making or maintaining any

 24
 

 

Multicurrency Loan in such
Foreign Currency, and such Lender shall deliver to the Borrower (with a copy to
the Administrative Agent) a written notice requesting compensation under this
paragraph (such notice shall include, if available, details reasonably
sufficient to establish the basis for such compensation payable and shall be
submitted to the Borrower within 120 days after it becomes aware of such fact),
the Borrower will pay (or cause any Subsidiary Borrower to pay) to such Lender
on each Interest Payment Date with respect to each affected Multicurrency Loan
an amount that will compensate such Lender for such additional cost.

(d)  A certificate as to any additional amounts
payable pursuant to this Section submitted by any Lender to the Borrower (with
a copy to the Administrative Agent) shall be conclusive in the absence of
manifest error.  Notwithstanding anything
to the contrary in this Section, the Borrower shall not be required to
compensate a Lender pursuant to this Section for any amounts incurred more than
nine months prior to the date that such Lender notifies the Borrower of such
Lender’s intention to claim compensation therefor; provided that, if the
circumstances giving rise to such claim have a retroactive effect, then such
nine-month period shall be extended to include the period of such retroactive
effect.  The obligations of the Borrower
pursuant to this Section shall survive the termination of this Agreement and
the payment of the Revolving Loans and all other amounts payable hereunder.

(e)  Notwithstanding any other provision of this
Agreement, if, (i) (A) the adoption of any law, rule or regulation after the
date of this Agreement, (B) any change in any law, rule or regulation or in the
interpretation or application thereof by any Governmental Authority after the
date of this Agreement or (C) compliance by any Lender with any request,
guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement, shall
make it unlawful for any such Lender to make or maintain any Multicurrency Loan
or to give effect to its obligations as contemplated hereby with respect to any
Multicurrency Loan, or (ii) there shall have occurred any change in national or
international financial, political or economic conditions (including the
imposition of or any change in exchange controls, but excluding conditions
otherwise covered by this Section 2.15) which would make it impracticable for
the Required Lenders to make or maintain Multicurrency Loans denominated in the
relevant currency after the date hereof to, or for the account of, the
Borrower, then, by written notice to the Borrower and to the Administrative
Agent:

(i)   such Lender
or Lenders may declare that Multicurrency Loans (in the affected currency or
currencies) will not thereafter (for the duration of such unlawfulness) be made
by such Lender or Lenders hereunder (or be continued for additional Interest
Periods), whereupon any request for a Multicurrency Loan (in the affected
currency or currencies) or to continue a Multicurrency Loan (in the affected
currency or currencies), as the case may be, for an additional Interest Period)
shall, as to such Lender or Lenders only, be of no force and effect, unless
such declaration shall be subsequently withdrawn; and

(ii)   such Lender
may require that all outstanding Multicurrency Loans (in the affected currency
or currencies), made by it be converted to ABR Loans or Loans denominated in
Dollars, as the case may be (unless repaid by the Borrower), in which event all
such Multicurrency Loans (in the affected currency or currencies) shall be
converted to ABR Loans or Revolving Loans denominated in Dollars, as the case
may be, as of the effective date of such notice as provided in paragraph (f)
below and at the Exchange Rate on the date of such conversion or, at the option
of the Borrower, repaid on the last day of the then current Interest Period
with respect thereto or, if earlier, the date on which the applicable notice
becomes effective.

In the event any Lender
shall exercise its rights under (i) or (ii) above, all payments and prepayments
of principal that would otherwise have been applied to repay the converted
Multicurrency Loans of such

 25
 

 

Lender shall instead be
applied to repay the ABR Loans or Revolving Loans denominated in Dollars, as
the case may be, made by such Lender resulting from such conversion.

(f)  For purposes of Section 2.15(e), a notice to
the Borrower by any Lender shall be effective as to each Multicurrency Loan
made by such Lender, if lawful, on the last day of the Interest Period
currently applicable to such Multicurrency Loan; in all other cases such notice
shall be effective on the date of receipt thereof by the Borrower.

2.16         Taxes.  (a) 
All payments made by the Borrower or any Subsidiary Borrower under this
Agreement shall be made free and clear of, and without deduction or withholding
for or on account of, any present or future income, stamp or other taxes,
levies, imposts, duties, charges, fees, deductions or withholdings, now or
hereafter imposed, levied, collected, withheld or assessed by any Governmental
Authority, excluding net income taxes and franchise taxes (imposed in lieu of
net income taxes) imposed on the Administrative Agent or any Lender as a result
of a present or former connection between the Administrative Agent or such
Lender and the jurisdiction of the Governmental Authority imposing such tax or
any political subdivision or taxing authority thereof or therein (other than
any such connection arising solely from the Administrative Agent or such Lender
having executed, delivered or performed its obligations or received a payment
under, or enforced, this Agreement or any other Loan Document).  If any such non-excluded taxes, levies,
imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded
Taxes”) or Other Taxes are required to be withheld from any amounts payable
to the Administrative Agent or any Lender hereunder, the amounts so payable to
the Administrative Agent or such Lender shall be increased to the extent
necessary to yield to the Administrative Agent or such Lender (after payment of
all Non-Excluded Taxes and Other Taxes) interest or any such other amounts
payable hereunder at the rates or in the amounts specified in this Agreement, provided,
however, that the Borrower or the relevant Subsidiary Borrower shall not
be required to increase any such amounts payable to any Lender with respect to
any Non-Excluded Taxes (i) that are attributable to such Lender’s failure to
comply with the requirements of paragraph (d) or (e) of this Section or (ii)
that are United States withholding taxes imposed on amounts payable to such
Lender at the time such Lender becomes a party to this Agreement, except to the
extent that such Lender’s assignor (if any) was entitled, at the time of
assignment, to receive additional amounts from the Borrower or the relevant
Subsidiary Borrower with respect to such Non-Excluded Taxes pursuant to this paragraph.

(b)  In addition, the Borrower or any relevant
Subsidiary Borrower shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law to the extent the Borrower or such
Subsidiary Borrower has not already reimbursed a Lender for such amounts
pursuant to Section 2.15 or Section 2.16(a).

(c)  Whenever any Non-Excluded Taxes or Other
Taxes are payable by the Borrower or relevant Subsidiary Borrower, as promptly
as possible thereafter the Borrower or the relevant Subsidiary Borrower shall
send to the Administrative Agent for its own account or for the account of the
relevant Lender, as the case may be, a certified copy of an original official
receipt received by the Borrower or relevant Subsidiary Borrower showing payment
thereof.  If the Borrower  or the relevant Subsidiary Borrower fails to
pay any Non-Excluded Taxes or Other Taxes when due to the appropriate taxing
authority or fails to remit to the Administrative Agent the required receipts
or other required documentary evidence, the Borrower and each Subsidiary
Borrower shall indemnify the Administrative Agent and the Lenders for any
incremental taxes, interest or penalties that may become payable by the
Administrative Agent or any Lender as a result of any such failure.

(d)  Each Lender (or Transferee) that is not a “U.S.
Person” as defined in Section 7701(a)(30) of the Code (a “Non-U.S.
Lender”) shall deliver to the Borrower and the Administrative Agent (or, in
the case of a Participant, to the Lender from which the related participation
shall have been

 26
 

 

purchased) two copies of
either U.S. Internal Revenue Service Form W-8BEN or Form W-8ECI, or, in the
case of a Non-U.S. Lender claiming exemption from U.S. federal
withholding tax under Section 871(h) or 881(c) of the Code with respect to
payments of “portfolio interest”, a statement substantially in the form of
Exhibit D and a Form W-8BEN, or any subsequent versions thereof or successors
thereto, properly completed and duly executed by such Non-U.S. Lender
claiming complete exemption from, or a reduced rate of, U.S. federal
withholding tax on all payments by the Borrower under this Agreement and the
other Loan Documents.  Such forms shall
be delivered by each Non-U.S. Lender on or before the date it becomes a
party to this Agreement (or, in the case of any Participant, on or before the
date such Participant purchases the related participation).  In addition, each Non-U.S. Lender shall
deliver such forms promptly upon the obsolescence or invalidity of any form
previously delivered by such Non-U.S. Lender.  Each Non-U.S. Lender shall promptly notify
the Borrower at any time it determines that it is no longer in a position to
provide any previously delivered certificate to the Borrower (or any other form
of certification adopted by the U.S. taxing authorities for such purpose).  Notwithstanding any other provision of this
paragraph, a Non-U.S. Lender shall not be required to deliver any form
pursuant to this paragraph that such Non-U.S. Lender is not legally able
to deliver.

(e)  A Lender that is entitled to an exemption
from or reduction of non-U.S. withholding tax under the law of the jurisdiction
in which the Borrower is located, or any treaty to which such jurisdiction is a
party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time or times
prescribed by applicable law or reasonably requested by the Borrower, such
properly completed and executed documentation prescribed by applicable law as will
permit such payments to be made without withholding or at a reduced rate, provided
that such Lender is legally entitled to complete, execute and deliver such
documentation and in such Lender’s judgment such completion, execution or
submission would not materially prejudice the legal position of such Lender.

(f)  If the Administrative
Agent or any Lender determines, in its sole discretion, that it has received a
refund of any Non-Excluded Taxes or Other Taxes as to which it has been
indemnified by the Borrower and each Subsidiary Borrower or with respect to
which the Borrower or relevant Subsidiary Borrower has paid additional amounts
pursuant to this Section 2.16, it shall pay over such refund to the Borrower or
relevant Subsidiary Borrower (but only to the extent of indemnity payments
made, or additional amounts paid, by the Borrower or relevant Subsidiary
Borrower under this Section 2.16 with respect to the Non-Excluded Taxes or
Other Taxes giving rise to such refund), net of all out-of-pocket expenses of
the Administrative Agent or such Lender and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such
refund); provided, that the Borrower, upon the request of the
Administrative Agent or such Lender, agrees to repay (or cause any Subsidiary Borrower to repay) the amount paid over to the Borrower or relevant
Subsidiary Borrower (plus any penalties, interest or other charges imposed by
the relevant Governmental Authority) to the Administrative Agent or such Lender
in the event the Administrative Agent or such Lender is required to repay such
refund to such Governmental Authority. This paragraph shall not be construed to
require the Administrative Agent or any Lender to make available its tax
returns (or any other information relating to its taxes which it deems
confidential) to the Borrower or any other Person.

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

2.17         Indemnity.  The Borrower and each of the Subsidiary
Borrowers agree to indemnify each Lender for, and to hold each Lender harmless
from, any loss or expense that such Lender may sustain or incur as a
consequence of (a) default by the Borrower or any Subsidiary Borrower in
making a borrowing of, conversion into or continuation of Eurodollar Loans
after the Borrower or any Subsidiary Borrower has given a notice requesting the
same in accordance with the provisions of this

 27
 

 

Agreement,
(b) default by the Borrower or any Subsidiary Borrower in making any prepayment
of or conversion from Eurodollar Loans after the Borrower or relevant
Subsidiary Borrower has given a notice thereof in accordance with the
provisions of this Agreement or (c) the making of a prepayment of Eurodollar
Loans on a day that is not the last day of an Interest Period with respect
thereto.  Such indemnification may
include an amount equal to the excess, if any, of (i) the amount of interest
that would have accrued on the amount so prepaid, or not so borrowed, converted
or continued, for the period from the date of such prepayment or of such
failure to borrow, convert or continue to the last day of such Interest Period
(or, in the case of a failure to borrow, convert or continue, the Interest
Period that would have commenced on the date of such failure) in each case at
the applicable rate of interest for such Revolving Loans provided for herein
(excluding, however, the Applicable Margin included therein, if any) over
(ii) the amount of interest (as reasonably determined by such Lender) that
would have accrued to such Lender on such amount by placing such amount on
deposit for a comparable period with leading banks in the interbank eurodollar
market.  A certificate as to any amounts
payable pursuant to this Section submitted to the Borrower by any Lender shall
be conclusive in the absence of manifest error. 
This covenant shall survive the termination of this Agreement and the
payment of the Revolving Loans and all other amounts payable hereunder.

2.18         Change of Lending Office.  Each Lender agrees that, upon the occurrence
of any event giving rise to the operation of Section 2.15 or 2.16(a) with
respect to such Lender, it will, if requested by the Borrower, use reasonable
efforts (subject to overall policy considerations of such Lender) to designate
another lending office for any Revolving Loans affected by such event with the
object of avoiding the consequences of such event; provided, that such
designation is made on terms that, in the sole judgment of such Lender, cause
such Lender and its lending office(s) to suffer no economic, legal or
regulatory disadvantage, and provided, further, that nothing in
this Section shall affect or postpone any of the obligations of the Borrower
and any Subsidiary Borrower or the rights of any Lender pursuant to Section
2.15 or 2.16(a).

2.19         Replacement of Lenders.  The Borrower shall be permitted to replace
any Lender that (a) requests reimbursement for amounts owing pursuant to
Section 2.15 or 2.16(a) or (b) defaults in its obligation to make Revolving
Loans hereunder, with a replacement financial institution; provided that
(i) such replacement does not conflict with any Requirement of Law, (ii) no
Event of Default shall have occurred and be continuing at the time of such
replacement, (iii) if applicable, prior to any such replacement, such Lender
shall not have taken actions under Section 2.15 sufficient to eliminate the
continued need for payment of amounts owing pursuant to Section 2.15 or 2.16(a),
(iv) the replacement financial institution shall purchase, at par, all
Revolving Loans and other amounts owing to such replaced Lender on or prior to
the date of replacement, (v) the Borrower shall be liable to such replaced
Lender under Section 2.17 if any Eurodollar Loan owing to such replaced Lender
shall be purchased other than on the last day of the Interest Period relating
thereto, (vi) the replacement financial institution, if not already a Lender,
shall be reasonably satisfactory to the Administrative Agent, (vii) the
replaced Lender shall be obligated to make such replacement in accordance with
the provisions of Section 10.6 (provided that the Borrower shall be obligated
to pay the registration and processing fee referred to therein), (viii) until such
time as such replacement shall be consummated, the Borrower shall pay all
additional amounts (if any) required pursuant to Section 2.15 or 2.16(a), as
the case may be, and (ix) any such replacement shall not be deemed to be a
waiver of any rights that the Borrower, the Administrative Agent or any other
Lender shall have against the replaced Lender.

2.20         Release of Subsidiary Guarantor.  In the event that all of the Capital Stock
held by the Borrower or its Subsidiaries in any Subsidiary Guarantor is sold or
otherwise Disposed of or dissolved or liquidated in compliance with the
requirements of this Agreement (or such sale, other Disposition, dissolution or
liquidation has been approved by the Required Lenders), such Subsidiary
Guarantor shall, without further action, automatically be released from its
Guaranteed Obligations under

 28
 

 

the
Guarantee Agreement and such Guaranteed Obligations, as to such Subsidiary
Guarantor, shall terminate and have no further force or effect (it being
understood and agreed that the sale of Capital Stock in one or more Persons
that own, directly or indirectly, all of such Capital Stock in any Subsidiary
Guarantor shall be deemed to be a sale of such Capital Stock in such Subsidiary
Guarantor for the purposes of this Section 2.20).

2.21         Judgment Currency. 
(a)   If, for the purpose of
obtaining judgment in any court, it is necessary to convert a sum owing
hereunder in one currency into another currency, each party hereto agrees, to
the fullest extent that it may effectively do so, that the rate of exchange
used shall be that at which, in accordance with normal banking procedures in
the relevant jurisdiction, the first currency could be purchased with such
other currency on the Business Day immediately preceding the day on which final
judgment is given.

(b)  The obligations of the Borrower and any
Subsidiary Borrower in respect of any sum due to any party hereto or any holder
of the obligations owing hereunder (the “Applicable Creditor”) shall,
notwithstanding any judgment in a currency (the “Judgment Currency”) other than
the currency in which such sum is stated to be due hereunder (the “Agreement
Currency”), be discharged only to the extent that, on the Business Day
following receipt by the Applicable Creditor of any sum adjudged to be so due
in the Judgment Currency, the Applicable Creditor may in accordance with normal
banking procedures in the relevant jurisdiction purchase the Agreement Currency
with the Judgment Currency; if the amount of the Agreement Currency so
purchased is less than the sum originally due to the Applicable Creditor in the
Agreement Currency, the Borrower and each Subsidiary Borrower as a separate
obligation and notwithstanding any such judgment, agrees to indemnify the
Applicable Creditor against such loss.  The
obligations of the Borrower and each Subsidiary Borrower contained in this
Section 2.21 shall survive the termination of this Agreement and the payment of
all other amounts owing hereunder.

2.22         Foreign Currency Exchange Rate.  (a)  
No later than 1:00 P.M., New York City time, on each Calculation Date
with respect to a Foreign Currency, the Administrative Agent shall determine
the Exchange Rate as of such Calculation Date with respect to such Foreign
Currency, provided that, upon receipt of a borrowing request pursuant to
Section 2.2(b), the Administrative Agent shall determine the Exchange Rate with
respect to the relevant Foreign Currency on the related Calculation Date (it
being acknowledged and agreed that the Administrative Agent shall use such Exchange
Rate for the purposes of determining compliance with Section 2.1 with respect
to such borrowing request).  The Exchange
Rates so determined shall become effective on the relevant Calculation Date (a “Reset
Date”), shall remain effective until the next succeeding Reset Date and shall
for all purposes of this Agreement (other than Sections 2.15(e) and 2.21 and
any other provision requiring the use of a current Exchange Rate) be the
Exchange Rates employed in converting any amounts between Dollars and Foreign
Currencies.

(b)  No later than 5:00 P.M., New York City time,
on each Reset Date, the Administrative Agent shall determine the aggregate
amount of the Dollar Equivalents of the principal amounts of the relevant
Multicurrency Loans then outstanding (after giving effect to any Multicurrency
Loans to be made or repaid on such date).

(c)  The Administrative Agent
shall promptly notify the Borrower of each determination of an Exchange Rate
hereunder.

 

 29

 

 

SECTION 3.   REPRESENTATIONS AND WARRANTIES

To induce the Administrative
Agent and the Lenders to enter into this Agreement and to make the Revolving
Loans, the Borrower hereby represents and warrants to the Administrative Agent
and each Lender that:

3.1           Financial Condition.  The audited consolidated balance sheets of
the Borrower and its Subsidiaries as at October 31, 2005, October 31, 2004 and
October 31, 2003, and the related consolidated statements of income and of cash
flows for the fiscal years ended on such dates, reported on by and accompanied
by an unqualified report from KPMG LLP, present fairly in all material respects
the consolidated financial condition of the Borrower and its Subsidiaries as at
such date, and the consolidated results of its operations and its consolidated
cash flows for the respective fiscal years then ended.  The unaudited consolidated balance sheet of
the Borrower and its Subsidiaries as at July 31, 2006, and the related
unaudited fiscal year-to-date consolidated statements of income and cash flows
present fairly in all material respects the consolidated financial condition of
the Borrower and its Subsidiaries as at such date, and the fiscal year-to-date
consolidated results of its operations and its consolidated fiscal year-to-date
cash flows (subject to normal year-end audit adjustments).  All such financial statements, including the
related schedules and notes thereto, have been prepared in accordance with GAAP
applied consistently throughout the periods involved (except as disclosed
therein).  No Group Member has any
material Guarantee Obligations, contingent liabilities and liabilities for
taxes, or any long-term leases or unusual forward or long-term
commitments, including any interest rate or foreign currency swap or exchange
transaction or other obligation in respect of derivatives, that are not
reflected in the most recent financial statements referred to in this
paragraph.  During the period from
October 31, 2005 to and including the date hereof there has been no Disposition
by any Group Member of any part of its business or property which is material
to the Borrower and its Subsidiaries, taken as a whole.

3.2           No Change.  Since November 1, 2005, there has been no
development or event that has had or could reasonably be expected to have a
Material Adverse Effect.

3.3           Existence; Compliance with Law.  Each Group Member (a) is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization, (b) has the power and authority, and the legal right, to own and
operate its property, to lease the property it operates as lessee and to
conduct the business in which it is currently engaged, (c) 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 and (d) is duly qualified as a foreign corporation or
other organization and in good standing under the laws of each jurisdiction
where its ownership, lease or operation of property or the conduct of its
business requires such qualification, except to the extent that the failure to
be so qualified or in good standing could not, in the aggregate, reasonably be
expected to have a Material Adverse Effect.

3.4           Power; Authorization; Enforceable
Obligations.  Each Loan Party has the
power and authority, and the legal right, to make, deliver and perform the Loan
Documents to which it is a party and, in the case of the Borrower, to obtain
extensions of credit hereunder.  Each Loan
Party has taken all necessary organizational action to authorize the execution,
delivery and performance of the Loan Documents to which it is a party and, in
the case of the Borrower, to authorize the extensions of credit on the terms
and conditions of this Agreement.  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 extensions of credit hereunder or with the execution,
delivery, performance, validity or enforceability of this Agreement or any of
the Loan Documents.  Each Loan Document
has been duly executed and delivered on behalf of each Loan Party party
thereto.  This Agreement constitutes, and
each other Loan Document upon execution will constitute, a legal, valid and
binding obligation of each Loan Party party

 30
 

 

thereto,
enforceable against each such Loan 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) and public policy
limiting exculpation, indemnification or contribution.

3.5           No Legal Bar.  The execution, delivery and performance of
this Agreement and the other Loan Documents, the borrowings hereunder and the
use of the proceeds thereof will not violate any Requirement of Law or any
Contractual Obligation of any Group Member (except where such violation of any
Contractual Obligation could not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect) and will not result in, or
require, the creation or imposition of any Lien on any of their respective
properties or revenues pursuant to any Requirement of Law or any such
Contractual Obligation.

3.6           Litigation.  No litigation, investigation or proceeding of
or before any arbitrator or Governmental Authority is pending or, to the
knowledge of the Borrower, threatened by or against any Group Member (a) with
respect to any of the Loan Documents or any of the transactions contemplated
hereby or thereby, or (b) that, after giving effect to any applicable
insurance, could reasonably be expected to have a Material Adverse Effect.

3.7           No Default.  No Group Member is in default under or with
respect to any of its Contractual Obligations in any respect that could
reasonably be expected to have a Material Adverse Effect.  No Default or Event of Default has occurred
and is continuing.

3.8           Ownership of Property; Liens.  Each Group Member has title in fee simple to,
or a valid leasehold interest in, all its real property, and good title to, or
a valid leasehold interest in, all its other property, except where failure to
have such title or valid leasehold interest could not reasonably be expected to
have a Material Adverse Effect, and none of such property is subject to any
Lien except as permitted by Section 6.3.

3.9           Intellectual Property.  Each Group Member owns, or is licensed to
use, all Intellectual Property necessary for the conduct of its business as
currently conducted.  No material claim
has been asserted and is pending by any Person challenging or questioning the
use of any Intellectual Property or the validity or effectiveness of any
Intellectual Property, nor does the Borrower know of any valid basis for any
such claim.  To the best of the Borrower’s
knowledge, the use of Intellectual Property by each Group Member does not
infringe on the rights of any Person in any material respect.

3.10         Taxes.  Each Group Member has filed or caused to be
filed all Federal, state and other tax returns that are required to be filed
for periods for which the statute of limitations remains open and has paid all
taxes shown to be due and payable on said returns or on any assessments made
against it or any of its property and all other taxes, fees or other charges
imposed on it or any of its property by any Governmental Authority (other than
any the amount or validity of which are currently being contested in good faith
by appropriate proceedings and with respect to which reserves in conformity
with GAAP have been provided on the books of the relevant Group Member or where
the failure to file such tax returns or pay such taxes, fees or other charges
could not reasonably be expected to have a Material Adverse Effect); no tax
Lien has been filed, and, to the knowledge of the Borrower, no claim is being
asserted, with respect to any such tax, fee or other charge.

3.11         Federal Regulations.  No part of the proceeds of any Revolving
Loans, and no other extensions of credit hereunder, will be used in a manner
which violates Regulation U as now and from time to time hereafter in effect or
for any purpose that violates the provisions of the Regulations of

 31
 

 

the
Board.  If requested by any Lender or the
Administrative Agent, the Borrower will furnish to the Administrative Agent and
each Lender a statement to the foregoing effect in conformity with the
requirements of FR Form G-3 or FR Form U-1, as applicable, referred to in
Regulation U.  None of the Borrower or
any of its Subsidiaries is engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of purchasing
or carrying Margin Stock.

3.12         Labor Matters.  Except as, in the aggregate, could not
reasonably be expected to have a Material Adverse Effect:  (a) there are no strikes or other labor
disputes against any Group Member pending or, to the knowledge of the Borrower,
threatened; (b) hours worked by and payment made to employees of each Group
Member have not been in violation of the Fair Labor Standards Act or any other
applicable Requirement of Law dealing with such matters; and (c) all payments
due from any Group Member on account of employee health and welfare insurance
have been paid or accrued as a liability on the books of the relevant Group
Member.

3.13         ERISA.  Neither a Reportable Event nor an “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 Plan,
and each 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, and no Lien in favor of the
PBGC or a Plan has arisen, during such five-year period.  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 by a material amount.  Neither the Borrower nor any Commonly
Controlled Entity has had a complete or partial withdrawal from any
Multiemployer Plan that has resulted or could reasonably be expected to result
in a material liability under ERISA, and neither the Borrower nor any Commonly
Controlled Entity would become subject to any material liability under ERISA if
the Borrower or any such Commonly Controlled Entity were to withdraw completely
from all Multiemployer Plans as of the valuation date most closely preceding
the date on which this representation is made or deemed made.  No such Multiemployer Plan is in
Reorganization or Insolvent.

3.14         Investment Company Act; Other
Regulations.  No Loan Party is an “investment
company”, or a company “controlled” by an “investment company”, within the meaning
of the Investment Company Act of 1940, as amended.  No Loan Party is subject to regulation under
any Requirement of Law (other than Regulation X of the Board) that limits its
ability to incur Indebtedness.

3.15         Use of Proceeds.  The proceeds of the Revolving Loans shall be
used for general corporate purposes, including acquisitions and repurchases by
the Borrower of its common stock.

3.16         Environmental Matters.  The Borrower and each Subsidiary has complied
with all applicable Environmental Laws, except to the extent that the failure
to so comply could not reasonably be expected to have a Material Adverse
Effect.  The Borrower’s and the
Subsidiaries’ facilities do not contain any hazardous wastes, hazardous
substances, hazardous materials, toxic substances or toxic pollutants regulated
under any Environmental Law, in violation of any such law, or any rules or
regulations promulgated pursuant thereto, except for violations that could not
reasonably be expected to have a Material Adverse Effect. The Borrower is aware
of no events, conditions or circumstances involving environmental pollution or
contamination or public or employee health or safety, in each case applicable
to it or its Subsidiaries, that could reasonably be expected to have a Material
Adverse Effect.

3.17         Accuracy of Information, etc.  No statement or information contained in this
Agreement, any other Loan Document, the Confidential Information Memorandum or
any other document or certificate furnished by or on behalf of any Loan Party
to the Administrative Agent or the

 32
 

 

Lenders,
or any of them, for use in connection with the transactions contemplated by
this Agreement or the other Loan Documents, when taken as a whole, contained as
of the date such statement, information, document or certificate was so
furnished (or, in the case of the Confidential Information Memorandum, as of
the date of this Agreement, and in the case of financial statements contained
in the Confidential Information Memorandum, as of the date such financial
statements were filed with the Securities and Exchange Commission), any untrue
statement of a material fact or omitted to state a material fact necessary to
make the statements contained herein or therein not misleading.  The projections and pro  forma
financial information contained in the materials referenced above are based
upon good faith estimates and assumptions believed by management of the
Borrower to be reasonable at the time made, it being recognized by the Lenders
that such financial information as it relates to future events is not to be
viewed as fact that actual results during the period or periods covered by such
financial information may differ from the projected results set forth therein
by a material amount and that the Company makes no representation as to whether
the projected results will be achieved. 
There is no fact known to any Loan Party that could reasonably be
expected to have a Material Adverse Effect that has not been expressly
disclosed herein, in the other Loan Documents, in the Confidential Information
Memorandum or in any other documents or certificates furnished to the
Administrative Agent and the Lenders for use in connection with the
transactions contemplated hereby and by the other Loan Documents.

318          Solvency.  Each Loan Party is, and after giving effect
to the incurrence of all Indebtedness and obligations being incurred in
connection herewith will be and will continue to be, Solvent.

SECTION 4.   CONDITIONS PRECEDENT

4.1           Conditions to Initial Extension of
Credit.  The agreement of each Lender
to make the initial extension of credit requested to be made by it is subject
to the satisfaction, prior to or concurrently with the making of such extension
of credit, of the following conditions precedent:

(a)   Credit Agreement; Guarantee Agreement.  The Administrative Agent shall have received
(i) this Agreement, executed and delivered by the Administrative Agent,
the Borrower and each Person listed on Schedule 1.1A and (ii) the Guarantee
Agreement, executed and delivered by each Subsidiary Guarantor, if any.

(b)   Projections.  The Lenders shall have received projections
of the Borrower and its Subsidiaries through the fiscal year ending October 31,
2011, presented on an annual basis, and such projections shall not, in the
reasonable judgment of the Lenders, reflect any material adverse change in the
consolidated financial condition of the Borrower and its Subsidiaries, as
reflected in the projections contained in the Confidential Information
Memorandum.

(c)   The Borrower shall have terminated the Existing
Credit Agreement and paid any principal, interest, fees or other amounts owing
thereunder.

(d)   Approvals.  All governmental and third party approvals
reasonably necessary in connection with the continuing operations of the Group
Members and the transactions contemplated hereby shall have been obtained and
be in full force and effect.

(e)   Fees. 
The Lenders, the Administrative Agent and the Joint Lead Arrangers shall
have received all fees required to be paid, and all expenses for which invoices
have been presented (including the reasonable fees and expenses of outside
legal counsel), no later than one Business Day before the Closing Date.

 33
 

 

(f)   Closing Certificate; Certified
Certificate of Incorporation; Good Standing Certificates.  The Administrative Agent shall have received
(i) a certificate of each Loan Party, dated on or before the Closing Date,
substantially in the form of Exhibit B, with appropriate insertions and
attachments, including the certificate of incorporation of each Loan Party that
is a corporation certified by the relevant authority of the jurisdiction of
organization of such Loan Party, and (ii) a long form good standing certificate
for each Loan Party from its jurisdiction of organization.

(g)   Legal Opinions.  The Administrative Agent shall have received
the executed legal opinion of Cooley Godward LLP, counsel to the Borrower and
its Subsidiaries.  Such legal opinion
shall cover such other matters incident to the transactions contemplated by
this Agreement as the Administrative Agent may reasonably require.

For the avoidance of doubt,
the parties agree that the conditions set forth in paragraphs (b), (c), (f) and
(g) were satisfied in connection with the effectiveness of the Existing Credit
Agreement.

4.2           Conditions to Each Extension of
Credit.  The agreement of each Lender
to make any extension of credit requested to be made by it on any date
(including its initial extension of credit) is subject to the satisfaction of
the following conditions precedent:

(a)   Representations and Warranties.  Each of the representations and warranties
made by any Loan Party in or pursuant to the Loan Documents shall be true and
correct on and as of such date as if made on and as of such date.

(b)   No Default.  No Default or Event of Default shall have
occurred and be continuing on such date or after giving effect to the
extensions of credit requested to be made on such date.

(c)   Other Documents.  In the case of any extension of credit made
on an Increased Revolving Commitment Closing Date, the Administrative Agent
shall have received such customary documents and information as it may
reasonably request.

(d)   Extensions of Credit to a Subsidiary
Borrower.  The representations and
warranties contained in Section 3.3, 3.4 and 3.5 as to any Subsidiary Borrower
to which a Revolving Extension of Credit is to be made shall be true and
correct in all material respects on and as of the date of such Borrowing.

Each borrowing by the
Borrower hereunder shall constitute a representation and warranty by the Borrower
as of the date of such extension of credit that the conditions contained in
this Section 4.2 have been satisfied.

SECTION 5.   AFFIRMATIVE COVENANTS

The Borrower hereby agrees
that, so long as the Revolving Commitments remain in effect or any Revolving
Loan or other amount is owing to any Lender or the Administrative Agent
hereunder, the Borrower shall and shall cause each of its Subsidiaries to:

5.1           Financial Statements.  Furnish to the Administrative Agent and each
Lender:

(a)   as soon as available, but in any event
within 90 days after the end of each fiscal year of the Borrower, a copy
of the audited consolidated balance sheet of the Borrower and its consolidated
Subsidiaries as at the end of such year and the related audited consolidated

 34
 

 

statements of income and of
cash flows for such year, setting forth in each case in comparative form the
figures for the previous year, reported on without a “going concern” or like
qualification or exception, by KPMG LLP or other independent certified public
accountants of nationally recognized standing; and

(b)   as soon as available, but in any event not
later than 45 days after the end of each of the first three quarterly periods
of each fiscal year of the Borrower, the unaudited consolidated balance sheet
of the Borrower and its consolidated Subsidiaries as at the end of such quarter
and the related unaudited consolidated statements of income and of cash flows
for such quarter and the portion of the fiscal year through the end of such
quarter, setting forth in each case in comparative form the figures for the
previous year, certified by a Responsible Officer as being fairly stated in all
material respects (subject to normal year-end audit adjustments).

All such financial
statements shall be complete and correct in all material respects and shall be
prepared in accordance with GAAP applied (except as approved by such
accountants or officer, as the case may be, and disclosed in reasonable detail
therein) consistently throughout the periods reflected therein and with prior
periods.  Any financial statement
required to be furnished pursuant to Section 5.1 shall be deemed to have been
furnished on the date on which the Lenders receive notice that the Borrower has
provided such financial statement to the Administrative Agent for posting on
the Intralinks website on the Internet at www.intralinks.com; provided
that the Administrative Agent shall give notice of any such posting to the
Lenders.  Notwithstanding the foregoing,
the Borrower shall deliver paper copies of any financial statement referred to
in Section 5.1 to the Administrative Agent if the Administrative Agent requests
the Borrower to furnish such paper copies until written notice to cease
delivering such paper copies is given by the Administrative Agent.

5.2           Certificates; Other Information.  Furnish to the Administrative Agent and each
Lender (or, in the case of clause (d), to the relevant Lender):

(a)   concurrently with the delivery of any
financial statements pursuant to Section 5.1, a certificate of a Responsible
Officer of the Borrower (i) certifying as to whether a Default or Event of
Default has occurred and, if a Default or Event of Default has occurred,
specifying the details thereof and any action taken or proposed to be taken
with respect thereto, (ii) setting forth reasonably detailed calculations
demonstrating compliance with Section 6.1 and (iii) stating whether
any change in GAAP or in the application thereof has occurred since the date of
the audited financial statements referred to in Section 3.1 and, if any
such change has occurred, specifying the effect of such change on the financial
statements accompanying such certificate;

(b)   within 10 days after the same are sent,
copies of all financial statements and reports that the Borrower sends to the
holders of any class of its debt securities or public equity securities and,
within 10 days after the same are filed, copies of all financial statements and
reports that the Borrower may make to, or file with, the SEC, except, in each
case, to the extent such financial statements or reports have already been
provided pursuant to Section 5.1; and

(c)   reasonably promptly, such additional
financial and other information as any Lender may from time to time reasonably
request.

Any information required to
be furnished pursuant to Section 5.2 shall be deemed to have been furnished on
the date on which the Lenders receive notice that the Borrower has provided
such financial statement to the Administrative Agent for posting on the
Intralinks website on the Internet at www.intralinks.com; provided that
the Administrative Agent shall give notice of any such posting to the
Lenders.  Notwithstanding the foregoing,
the Borrower shall deliver paper copies of any information referred to in

 35
 

 

Section 5.2 to the
Administrative Agent if the Administrative Agent requests the Borrower to
furnish such paper copies until written notice to cease delivering such paper
copies is given by the Administrative Agent.

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
obligations of whatever nature, except where the amount or validity thereof is
currently being contested in good faith by appropriate proceedings and reserves
in conformity with GAAP with respect thereto have been provided on the books of
the relevant Group Member or where such obligations do not, in the aggregate,
exceed $15,000,000

5.4           Maintenance of Existence;
Compliance.  (a)(i) Preserve, renew
and keep in full force and effect its organizational existence and (ii) take
all reasonable action to maintain all rights, privileges and franchises
necessary in the normal conduct of its business, except, in each case, as
otherwise permitted by Section 6.4 and except, in the case of clause (ii)
above, to the extent that failure to do so could not reasonably be expected to
have a Material Adverse Effect; and (b) comply with all Contractual Obligations
and Requirements of Law except to the extent that failure to comply therewith
could not, in the aggregate, reasonably be expected to have a Material Adverse
Effect.

5.5           Maintenance of Property; Insurance.  (a) Keep all property necessary in its
business in good working order and condition, ordinary wear and tear excepted
and (b) maintain with financially sound and reputable insurance companies
insurance on all its property in at least such amounts and against at least
such risks (but including in any event public liability and business
interruption) as are usually insured against in the same general area by
companies engaged in the same business.

5.6           Inspection of Property; Books and
Records; Discussions.  (a) Keep
proper books of records and account in which full, true and correct entries in
conformity with GAAP and all Requirements of Law shall be made of all financial
transactions in relation to its business and (b) permit representatives of any
Lender to visit and inspect any of its properties and examine and make
abstracts from any of its books and records at any reasonable time during normal
business hours and as often as may reasonably be desired and to discuss the
business, operations, properties and financial and other condition of the Group
Members with officers and employees of the Group Members and with their
independent certified public accountants.

5.7           Notices.  Promptly give notice to the Administrative
Agent and each Lender of:

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

(b)   any (i) default or event of default under
any Contractual Obligation of any Group Member or (ii) litigation,
investigation or proceeding that may exist at any time between any Group Member
and any Governmental Authority, that in either case, if not cured or if
adversely determined, as the case may be, could reasonably be expected to have
a Material Adverse Effect;

(c)   any litigation or proceeding affecting any
Group Member (i) with respect to any of the Loan Documents or any of the
transactions contemplated hereby or thereby, or (ii) that, after giving effect
to any applicable insurance, could reasonably be expected to have a Material
Adverse Effect;

(d)   the following events, as soon as possible
and in any event within 30 days after the Borrower knows thereof:  (i) the occurrence of any Reportable Event
with respect to any Plan, a failure to make any required contribution to a
Plan, the creation of any Lien in favor of the PBGC or a Plan or any withdrawal
from, or the termination, Reorganization or Insolvency of, any

 36
 

 

Multiemployer Plan or (ii)
the institution of proceedings or the taking of any other action by the PBGC or
the Borrower or any Commonly Controlled Entity or any Multiemployer Plan with
respect to the withdrawal from, or the termination, Reorganization or
Insolvency of, any Plan; and

(e)   any development or event that has had or could
reasonably be expected to have a Material Adverse Effect.

Each notice pursuant to this
Section 5.7 shall be accompanied by a statement of a Responsible Officer
setting forth details of the occurrence referred to therein and stating what
action the relevant Group Member proposes to take with respect thereto.

5.8           Environmental Laws.  Comply in all material respects with, and use
reasonable efforts to 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 use reasonable efforts
to 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.

5.9           New Significant Subsidiaries.  With respect to any new Significant
Subsidiary created or acquired after the Closing Date by any Group Member
(which, for the purposes of this Section 5.9, shall include any existing
Subsidiary that becomes a Significant Subsidiary), promptly cause such new
Significant Subsidiary (a) to become a party to the Guarantee Agreement
and (b) to deliver to the Administrative Agent a certificate of such Subsidiary,
substantially in the form of Exhibit B, with appropriate insertions and
attachments.

SECTION 6.   NEGATIVE COVENANTS

The Borrower hereby agrees
that, so long as the Revolving Commitments remain in effect or any Revolving
Loan or other amount is owing to any Lender or the Administrative Agent
hereunder, the Borrower shall not, and shall not permit any of its Subsidiaries
to, directly or indirectly:

6.1           Financial Condition Covenants.

(a)  Consolidated Leverage Ratio. 
Permit the Consolidated Leverage Ratio as at the last day of any period
of four consecutive fiscal quarters of the Borrower to exceed 2.25 to 1.00.

(b)  Minimum Cash. 
Permit the aggregate amount of all cash and Cash Equivalents held by the
Borrower and its Subsidiaries at any time and available for general corporate
purposes at such time to be less than $300,000,000.

6.2           Subsidiary Indebtedness.  Permit any Subsidiary of the Borrower to
create, issue, incur, assume, become liable in respect of or suffer to exist
any Indebtedness, except:

(a)   Indebtedness of any Loan Party pursuant to
any Loan Document;

(b)   Indebtedness of any Subsidiary to the
Borrower or any other Subsidiary;

(c)   Guarantee Obligations incurred in the
ordinary course of business by any Subsidiary of the Borrower of obligations of
any Subsidiary Guarantor;

 37
 

 

(d)   Indebtedness outstanding on the date hereof
and listed on Schedule 6.2(d) and any refinancings, refundings, renewals or
extensions thereof (without increasing, or shortening the maturity of, the
principal amount thereof);

(e)   Indebtedness (including, without limitation,
Capital Lease Obligations) secured by Liens permitted by Section 6.3(g) in an
aggregate principal amount not to exceed $50,000,000 at any one time
outstanding;

(f)   Indebtedness of any Person that becomes a
Subsidiary after the date hereof; provided that (i) such Indebtedness
exists at the time such Person becomes a Subsidiary and is not created in
contemplation of or in connection with such Person becoming a Subsidiary and
(ii) after giving pro forma effect to the incurrence of such Indebtedness, no
Default or Event of Default shall have occurred and be continuing; and

(g)   additional Indebtedness of the Borrower’s
Subsidiaries in an aggregate principal amount (for all such Subsidiaries) not
to exceed $75,000,000 at any one time outstanding.

6.3           Liens.  Create, incur, assume or suffer to exist any
Lien upon any of its property, whether now owned or hereafter acquired, except:

(a)   Liens for taxes not yet due or that 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 its Subsidiaries, as the case may be, in conformity with
GAAP;(b)   carriers’, warehousemen’s,
mechanics’, materialmen’s, repairmen’s or other like Liens arising in the
ordinary course of business that are not overdue for a period of more than 30
days or that are being contested in good faith by appropriate proceedings;

(c)   pledges or deposits in connection with
workers’ compensation, unemployment insurance and other social security
legislation;

(d)   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;

(e)   easements, rights-of-way, restrictions and
other similar encumbrances incurred in the ordinary course of business that, in
the aggregate, are not substantial in amount and that do not in any case
materially detract from the value of the property subject thereto or materially
interfere with the ordinary conduct of the business of the Borrower or any of
its Subsidiaries;

(f)   Liens in existence on the date hereof listed
on Schedule 6.3(f), securing Indebtedness permitted by Section 6.2(d), provided
that no such Lien is spread to cover any additional property after the Closing
Date and that the amount of Indebtedness secured thereby is not increased;

(g)   Liens securing (i) Indebtedness of any
Subsidiary of the Borrower incurred pursuant to Section 6.2(e) to finance the
acquisition of fixed or capital assets and (ii) Indebtedness of the Borrower
incurred to finance the acquisition of fixed or capital assets, provided
that (x) such Liens shall be created substantially simultaneously with the
acquisition of such fixed or capital assets, (y) such Liens do not at any time
encumber any property other than the property financed by such Indebtedness and
(z) the amount of Indebtedness secured thereby is not increased;

 38
 

 

(h)   any interest or title of a lessor under any
lease entered into by the Borrower or any other Subsidiary in the ordinary
course of its business and covering only the assets so leased;

(i)   any Lien existing on any property or asset
prior to the acquisition thereof by the Borrower or any Subsidiary or existing
on any property or asset of any Person that becomes a Subsidiary after the date
hereof prior to the time such Person becomes a Subsidiary; provided that
(i) such Lien is not created in contemplation of or in connection with
such acquisi­tion or such Person becoming a Subsidiary , as the case may be,
(ii) such Lien shall not apply to any other property or assets of the
Borrower or any Subsidiary and (iii) such Lien shall secure only those
obligations which it secures on the date of such acquisition or the date such
Person becomes a Subsidiary, as the case may be, and extensions, renewals and
replacements thereof that do not increase the outstanding principal amount
thereof;

(j)   Liens encumbering property or assets under
construction (and proceeds or products thereof) arising from progress or
partial payments by a customer of the Borrower or its Subsidiaries relating to
such property or assets;

(k)   banker’s Liens and similar Liens in respect
of deposit accounts, and Liens in the ordinary course of business in favor of securities
intermediaries in respect of securities accounts securing fees and costs owing
to such securities intermediaries;

(l)   Liens on insurance proceeds in favor of
insurance companies with respect to the financing of premiums;

(m)   precautionary filings in respect of true
leases;

(n)   that certain Lien imposed by the City of San
Jose, California on the Borrower’s San Jose property to secure payment of a
special tax authorized by the City of San Jose assessed in order to pay
principal and interest on bonds, the proceeds of which are being used to fund
certain roadway improvements; and

(o)   Liens not otherwise permitted by this
Section so long as neither (i) the aggregate outstanding principal amount of
the obligations secured thereby nor (ii) the aggregate fair market value
(determined as of the date such Lien is incurred) of the assets subject thereto
exceeds (as to the Borrower and all Subsidiaries) $25,000,000 at any one time.

6.4           Fundamental Changes.  Enter into any merger, consolidation or amalgamation,
or liquidate, wind up or dissolve itself (or suffer any liquidation or
dissolution), or Dispose of all or substantially all of its property or
business, except that:

(a)   any Subsidiary of the Borrower may be merged
or consolidated with or into the Borrower (provided that the Borrower
shall be the continuing or surviving corporation) or with or into any directly
or indirectly wholly-owned Subsidiary (provided that the continuing or
surviving corporation shall be a Subsidiary); and

(b)   any Subsidiary of the Borrower may Dispose
of any or all of its assets (i) to the Borrower or any Subsidiary (upon
voluntary liquidation or otherwise) or (ii) pursuant to a Disposition permitted
by Section 6.5;

(c)   the Borrower or a wholly-owned Subsidiary of
the Borrower may merge with another corporation, provided (i) the
Borrower or such wholly-owned Subsidiary (subject to

 39
 

 

clause (ii)), as the case
may be, shall be the continuing or surviving corporation of such merger, or
(ii) in the case of a wholly-owned Subsidiary of the Borrower which is merged
into another corporation which is the continuing or surviving corporation of
such merger, the Borrower shall cause such continuing or surviving corporation
to be a wholly-owned Subsidiary of the Borrower; provided in the case of
(i) and (ii) above, immediately before and after giving effect to such merger
no Default or Event of Default shall have occurred and be continuing; and

(d)   provided no Default or Event of Default
shall have occurred and be continuing, any Subsidiary may be dissolved,
wound-up or liquidated if the Borrower determines in good faith that such
liquidation or dissolution is in the best interests of the Borrower, is not
materially disadvantageous to the Lenders and could not reasonably be expected to
have a Material Adverse Effect.

6.5           Disposition of Property.  Dispose of any of its property, whether now
owned or hereafter acquired, or, in the case of any Subsidiary, issue or sell
any shares of such Subsidiary’s Capital Stock to any Person, except:

(a)   the Disposition of obsolete or worn out
property in the ordinary course of business;

(b)   the sale of inventory in the ordinary course
of business;

(c)   Dispositions permitted by clause (i) of
Section 6.4(b);

(d)   the sale or issuance of any Subsidiary’s
Capital Stock to the Borrower or any Subsidiary;

(e)   the sale of accounts receivable or
contracted future accounts receivable pursuant to an accounts receivable
securitization;

(f)   any wholly-owned Subsidiary (the “Disposing
Entity”) may Dispose of any or all of its assets (upon voluntary
liquidation or otherwise) to (i) the Borrower or (ii) any other wholly-owned
Subsidiary of the Borrower; provided, in the case of clause (ii), that
if the Disposing Entity was a Subsidiary Guarantor prior to such Disposition,
the other wholly-owned Subsidiary must be a Subsidiary Guarantor after giving
effect to such Disposition;

(g)   the sale or other Disposition of securities
held for investment purposes in the ordinary course of business;

(h)   Dispositions pursuant to true leases;

(i)   the Disposition of approximately 34 acres of
undeveloped land owned by the Borrower and located in San Jose, California; and

(j)   the Disposition of other property in one or
a series of related transactions having an aggregate fair market value not in
excess of 10% of the total assets of the Borrower and its Subsidiaries at any
time; provided that neither the Borrower nor any of its Subsidiaries
shall make a Material Disposition unless (i) immediately before and immediately
after giving pro forma effect to such Material Disposition, no Default or Event
of Default shall have occurred and be continuing and (2) immediately after
giving effect to such Material Disposition, the Borrower and its Subsidiaries
shall be in pro forma compliance with the covenants set forth in 6.1, such
compliance to be determined on the basis of the financial information most
recently delivered to

 40
 

 

the Administrative Agent and
the Lenders pursuant to Section 5.1(a) or (b) as though such Material Disposition
had been consummated as of the first day of the fiscal period covered thereby
and evidenced by a certificate from a Responsible Officer of the Borrower
demonstrating such compliance calculation in reasonable detail.

6.6           Transactions with Affiliates.  Enter into any material transaction,
including any purchase, sale, lease or exchange of property, the rendering of
any service or the payment of any management, advisory or similar fees, with
any Affiliate (other than the Borrower or any Subsidiary Guarantor) unless such
transaction is (a) otherwise permitted under this Agreement, (b) in the
ordinary course of business of the relevant Group Member, and (c) upon
fair and reasonable terms no less favorable to the relevant Group Member than
it would obtain in a comparable arm’s length transaction with a Person that is
not an Affiliate; except for:

(a)   transactions (i) approved by a majority of
the disinterested members of the board of directors of the Borrower or (ii) for
which the Borrower or any Subsidiary shall deliver to the Administrative Agent
a written opinion of a nationally recognized investment banking, accounting,
valuation or appraisal firm stating that the transaction is fair to the
Borrower or such Subsidiary from a financial point of view; and

(b)   the payment of reasonable fees and
compensation to officers and directors of the Borrower or any of its
Subsidiaries and reasonable indemnification arrangements entered into by the
Borrower or any of its Subsidiaries, including any issuance of securities, or
other payments, awards or grants in cash, securities or otherwise pursuant to,
or the funding of, employment arrangements, employee stock options and employee
stock ownership plans approved by the board of directors of the Borrower.

6.7           Changes in Fiscal Periods.  Without first giving prior written notice
thereof to the Administrative Agent and the Lenders, permit the fiscal year of
the Borrower to end on a day other than the Saturday closest to October 31 or
change the Borrower’s method of determining fiscal quarters; provided
that no more than one such notice shall be given during the term of this
Agreement.

6.8           Clauses Restricting Subsidiary
Distributions.  Enter into or suffer
to exist or become effective any consensual encumbrance or restriction on the
ability of any Subsidiary of the Borrower to (a) make Restricted Payments in
respect of any Capital Stock of such Subsidiary held by, or pay any
Indebtedness owed to, the Borrower or any other Subsidiary of the Borrower, (b)
make loans or advances to, or other Investments in, the Borrower or any other
Subsidiary of the Borrower or (c) transfer any of its assets to the Borrower or
any other Subsidiary of the Borrower, except for such encumbrances or
restrictions existing under or by reason of (i) any restrictions existing under
the Loan Documents or under any law or regulation of any Governmental
Authority, (ii) any restrictions with respect to a Subsidiary imposed pursuant
to an agreement that has been entered into in connection with the Disposition
of all or substantially all of the Capital Stock or assets of such Subsidiary,
(iii) any restrictions in existence at the time the Borrower acquired or acquires
such Subsidiary, (iv) restrictions and conditions existing on the date hereof,
(v) customary provisions in leases or other agreements restricting the
assignment thereof, and (vi) any restrictions in agreements constituting
secured Indebtedness, provided the restrictions only apply to the assets
constituting security for such Indebtedness.

6.9           Lines of Business.  Enter into any business, either directly or
through any Subsidiary, except for those businesses in which the Borrower and
its Subsidiaries are engaged on the date of this Agreement or that are
reasonably related thereto.

 

 41

 

6.10         Material Acquisitions.  Make a Material Acquisition unless (i)
immediately before and immediately after giving pro forma effect to such
Material Acquisition, no Default or Event of Default shall have occurred and be
continuing and (2) immediately after giving effect to such Material
Acquisition, the Borrower and its Subsidiaries shall be in pro forma compliance
with the covenants set forth in 6.1, such compliance to be determined on the
basis of the financial information most recently delivered to the Administrative
Agent and the Lenders pursuant to Section 5.1(a) or (b) as though such Material
Acquisition had been consummated as of the first day of the fiscal period
covered thereby and evidenced by a certificate from a Responsible Officer of
the Borrower demonstrating such compliance calculation in reasonable detail.

SECTION 7.   EVENTS OF DEFAULT

7.1           Events
of Default.  If any of the following
events shall occur and be continuing:

(a)   the Borrower or any Subsidiary Borrower
shall fail to pay any principal of any Revolving Loan when due in accordance
with the terms hereof; or the Borrower or any Subsidiary Borrower shall fail to
pay any interest on any Revolving Loan, or any other amount payable hereunder or under any
other Loan Document, within five days after any such interest or other amount
becomes due in accordance with the terms hereof; or

(b)   any representation or warranty made or
deemed made by any Loan Party herein or in any other Loan Document or that is
contained in any certificate, document or financial or other statement
furnished by it at any time under or in connection with this Agreement or any such other Loan
Document shall prove to have been inaccurate in any material respect on or as
of the date made or deemed made, unless the facts or circumstances to which
such representation or warranty relates shall have been subsequently corrected
so as to make such representation or warranty no longer inaccurate in any
material respect; or

(c)   any Loan Party shall default in the
observance or performance of any agreement contained in clause (i) or (ii) of
Section 5.4(a) (with respect to the Borrower only), Section 5.7(a) or Section 6 of this
Agreement; or

(d)   any Loan Party shall default in the
observance or performance of any other agreement contained in this Agreement or
any other Loan Document
(other than as provided in paragraphs (a) through (c) of this Section), and
such default shall continue unremedied for a period of 30 days after notice to
the Borrower from the Administrative Agent or the Required Lenders; or

(e)   any Group Member shall (i) default in making
any payment of any principal of any Indebtedness (including any Guarantee
Obligation, but excluding
the Revolving Loans) on the scheduled or original due date with respect
thereto; or (ii) default in making any payment of any interest on any such
Indebtedness beyond the period of grace, if any, provided in the instrument or
agreement under which such Indebtedness was created; or (iii) default in the
observance or performance of any other agreement or condition relating to any
such Indebtedness or contained in any instrument or agreement evidencing,
securing or relating thereto, or any other event shall occur or condition
exist, the effect of which default or other event or condition is to cause, or
to permit the holder or beneficiary of such Indebtedness (or a trustee or agent
on behalf of such holder or beneficiary) to cause, with the giving of notice if
required, such Indebtedness to become due prior to its stated maturity or (in
the case of any such Indebtedness constituting a Guarantee Obligation) to become
payable; provided, that a default, event or condition described in
clause (i), (ii) or (iii) of this paragraph (e) shall not at any time
constitute an Event of Default unless, at such

 42
 

 

time, one or more defaults, events or conditions of the
type described in clauses (i), (ii) and (iii) of this paragraph (e) shall have
occurred and be continuing with respect to Indebtedness the outstanding
principal amount of which exceeds in the aggregate $25,000,000; or

(f)   (i) any Group Member 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, 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
or other similar official for it or for all or any substantial part of its
assets, or any Group Member shall make a general assignment for the benefit of
its creditors; or (ii) there shall be commenced against any Group Member any
case, proceeding or other action of a nature referred to in clause (i) above
that (A) results in the entry of an order for relief or any such adjudication
or appointment or (B) remains undismissed, undischarged or unbonded for a
period of 60 days; or (iii) there shall be commenced against any Group Member
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 that results in the entry of an order for any such
relief that shall not have been vacated, discharged, or stayed or bonded
pending appeal within 60 days from the entry thereof; (iv) any Group Member
shall generally not, or shall be unable to, or shall admit in writing its
inability to, pay its debts as they become due; 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 Plan, (ii) any “accumulated funding deficiency” (as defined
in Section 302 of ERISA), whether or not waived, shall exist with respect to
any Plan or any Lien in favor of the PBGC or a Plan shall arise on the assets
of any Group Member 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, (v) any Group Member or any Commonly Controlled Entity shall, or
in the reasonable opinion of the Required Lenders is likely to, incur any
liability in connection with a withdrawal from, or the Insolvency or
Reorganization of, a Multiemployer Plan or (vi) any other event or condition
shall occur or exist with respect to a Plan; and in each case in clauses (i)
through (vi) above, such event or condition, together with all other such
events or conditions, if any, could, in the sole judgment of the Required
Lenders, reasonably be expected to have a Material Adverse Effect; or

(h)   one or more judgments or decrees shall be
entered against any Group Member involving in the aggregate a liability (not
paid by the Borrower or its Subsidiaries or paid or fully covered by insurance
as to which the relevant insurance company has acknowledged coverage) of
$15,000,000 or more, and all such judgments or decrees shall not have been
vacated, discharged, stayed or bonded pending appeal within 45 days from the
entry thereof; or

(i)   the Guarantee Agreement or the guarantee
contained in Section 2 thereof shall cease, for any reason, to be in full force
and effect, or any Loan Party or any Affiliate of any Loan Party shall so
assert; or

(j)   a Change in Control shall occur;

 43
 

 

then, and in any such event, (A) if such event is an
Event of Default specified in clause (i) or (ii) of paragraph (f) above with
respect to the Borrower, automatically the Revolving Commitments shall
immediately terminate and the Revolving Loans (with accrued interest thereon)
and all other amounts owing under this Agreement and the other Loan Documents
shall immediately become due and payable, and (B) if such event is any other
Event of Default, either or both of the following actions may be taken:  (i) with the consent of the Required Lenders,
the Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall, by notice to the Borrower declare the Revolving
Commitments to be terminated forthwith, whereupon the Revolving Commitments
shall immediately terminate; and (ii) with the consent of the Required Lenders,
the Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall, by notice to the Borrower, declare the Revolving
Loans (with accrued interest thereon) and all other amounts owing under this
Agreement and the other Loan Documents to be due and payable forthwith,
whereupon the same shall immediately become due and payable.  Except as expressly provided above in this
Section, presentment, demand, protest and all other notices of any kind are
hereby expressly waived by the Borrower.

7.2           Annulment of Defaults.  An Event of Default shall not be deemed to be
in existence for any purpose of this Agreement if the Administrative Agent,
with the consent of or at the direction of the Required Lenders, subject to
Section 10.1, shall have waived such Event of Default in writing or stated in
writing that the same has been cured to its reasonable satisfaction, but no
such waiver shall extend to or affect any subsequent Event of Default or impair
any rights of the Administrative Agent or the Lenders upon the occurrence
thereof.

SECTION 8.   THE AGENTS

8.1           Appointment.  Each Lender hereby irrevocably designates and
appoints the Administrative Agent as the agent of such Lender under this
Agreement and the other Loan Documents, and each such Lender irrevocably
authorizes the Administrative Agent, in such capacity, to take such action on
its behalf under the provisions of this Agreement and the other Loan Documents
and to exercise such powers and perform such duties as are expressly delegated
to the Administrative Agent by the terms of this Agreement and the other Loan
Documents, 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 any other Loan Document or otherwise exist against the
Administrative Agent.

8.2           Delegation of Duties.  The Administrative Agent may execute any of
its duties under this Agreement and the other Loan Documents 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.

8.3           Exculpatory Provisions.  Neither any Agent nor any of their respective
officers, directors, employees, agents, attorneys-in-fact or
affiliates shall be (i) liable for any action lawfully taken or omitted to be
taken by it or such Person under or in connection with this Agreement or any
other Loan Document (except to the extent that any of the foregoing are found
by a final and nonappealable decision of a court of competent jurisdiction to
have resulted from its or such Person’s own bad faith, 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 any Loan Party
or any officer thereof contained in this Agreement or any other Loan Document
or in any certificate, report, statement or other document referred to or
provided for in, or received by the Agents under or in connection with, this
Agreement or any other

 44
 

 

Loan
Document or for the value, validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Loan Document or for any failure
of any Loan Party a party thereto to perform its obligations hereunder or
thereunder.  The Agents shall not be
under any obligation to any Lender to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions
of, this Agreement or any other Loan Document, or to inspect the properties,
books or records of any Loan Party.

8.4           Reliance by Administrative Agent.  The Administrative Agent shall be entitled to
rely, and shall be fully protected in relying, upon any instrument, writing,
resolution, notice, consent, certificate, affidavit, letter, telecopy, telex or
teletype message, statement, order or other document or conversation believed
by it 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 counsel to the Borrower), 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 written notice of assignment,
negotiation or transfer thereof shall have been filed with the Administrative
Agent.  The Administrative Agent shall be
fully justified in failing or refusing to take any action under this Agreement
or any other Loan Document unless it shall first receive such advice or
concurrence of the Required Lenders (or, if so specified by this Agreement, all
Lenders) as it deems appropriate or it shall first be indemnified to its
satisfaction by the Lenders against any and all liability and expense that may
be incurred by it by reason of taking or continuing to take any such action.  The Administrative Agent shall in all cases
be fully protected in acting, or in refraining from acting, under this
Agreement and the other Loan Documents in accordance with a request of the
Required Lenders (or, if so specified by this Agreement, all Lenders), 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 Revolving Loans.

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 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 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 (or, if so specified by
this Agreement, all Lenders); provided that unless and until the
Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it
shall deem advisable in the best interests of the Lenders.

8.6           Non-Reliance on Agents and Other
Lenders.  Each Lender expressly
acknowledges that neither the Agents nor any of their respective officers,
directors, employees, agents, attorneys-in-fact or affiliates have
made any representations or warranties to it and that no act by any Agent
hereafter taken, including any review of the affairs of a Loan Party or any
affiliate of a Loan Party, shall be deemed to constitute any representation or
warranty by any Agent to any Lender. 
Each Lender represents to the Agents that it has, independently and
without reliance upon any 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 Loan Parties and their affiliates and
made its own decision to make its Revolving Loans hereunder and enter into this
Agreement.  Each Lender also represents
that it will, independently and without reliance upon any 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 the other
Loan Documents, 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 Loan Parties and their affiliates.  Except for notices, reports

 45
 

 

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 any Loan Party or any affiliate
of a Loan Party that may come into the possession of the Administrative Agent
or any of its officers, directors, employees, agents, attorneys-in-fact
or affiliates.

8.7           Indemnification.  The Lenders agree to indemnify each Agent in
its capacity as such (to the extent not reimbursed by the Borrower or any
Subsidiary Borrower and without limiting the obligation of the Borrower to do
so), ratably according to their respective Aggregate Exposure Percentages in
effect on the date on which indemnification is sought under this Section (or,
if indemnification is sought after the date upon which the Revolving
Commitments shall have terminated and the Revolving Loans shall have been paid
in full, ratably in accordance with such Aggregate Exposure Percentages immediately
prior to such date), from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind whatsoever that may at any time (whether before or
after the payment of the Revolving Loans) be imposed on, incurred by or
asserted against such Agent in any way relating to or arising out of, the
Revolving Commitments, this Agreement, any of the other Loan Documents 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 such Agent
under or in connection with any of the foregoing; provided 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 that are found by a final and nonappealable decision
of a court of competent jurisdiction to have resulted from such Agent’s bad
faith, gross negligence or willful misconduct. 
The agreements in this Section shall survive the payment of the
Revolving Loans and all other amounts payable hereunder.

8.8           Agent in Its Individual Capacity.  Each Agent and its affiliates may make loans
to, accept deposits from and generally engage in any kind of business with any
Loan Party as though such Agent were not an Agent.  With respect to its Revolving Loans made or
renewed by it, each Agent shall have the same rights and powers under this Agreement
and the other Loan Documents as any Lender and may exercise the same as though
it were not an Agent, and the terms “Lender” and “Lenders” shall include each
Agent in its individual capacity.

8.9           Successor Administrative Agent.  The Administrative Agent may resign as
Administrative Agent upon 10 days’ notice to the Lenders and the Borrower.  If the Administrative Agent shall resign as
Administrative Agent under this Agreement and the other Loan Documents, then
the Required Lenders shall appoint from among the Lenders a successor agent for
the Lenders, which successor agent shall (unless an Event of Default under
Section 7(a) or Section 7(f) with respect to the Borrower shall have occurred
and be continuing) be subject to approval 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 Revolving Loans.  If no successor agent has accepted
appointment as Administrative Agent by the date that is 10 days following a
retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become effective,
and the Lenders shall assume and perform all of the duties of the
Administrative Agent hereunder until such time, if any, as the Required Lenders
appoint a successor agent as provided for above.  After any retiring Administrative Agent’s
resignation as Administrative Agent, the provisions of

 46
 

 

this
Section 8 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 and the
other Loan Documents.

8.10         Syndication Agent.  The Syndication Agent shall not have any
duties or responsibilities hereunder in its capacity as such.

SECTION
9.   GUARANTEE OF SUBSIDIARY BORROWER OBLIGATIONS

9.1           Guarantee.

(a)   The Borrower hereby unconditionally and
irrevocably guaranties to the Administrative Agent, for the ratable benefit of
the Lenders and their respective successors, indorsees, transferees and
assigns, the prompt and complete payment and performance by any Subsidiary
Borrower when due (whether at the stated maturity, by acceleration or
otherwise) of the Subsidiary Borrower Obligations.

(b)   The Borrower further agrees to pay any and
all expenses (including, without limitation, all fees and disbursements of
counsel) which may be paid or incurred by the Administrative Agent, or any
Lender in enforcing, or obtaining advice of counsel in respect of, any rights
with respect to, or collecting, any or all of the Subsidiary Borrower
Obligations and/or enforcing any rights with respect to, or collecting against,
any Subsidiary Borrower under this Guarantee; provided, however,
that the Borrower shall not be liable for the fees and expenses of more than
one separate firm for the Lenders (unless there shall exist an actual conflict
of interest among such Persons, and in such case, not more than two separate
firms) in connection with any one such action or any separate, but
substantially similar or related actions in the same jurisdiction, nor shall
the Borrower be liable for any settlement or proceeding effected without the
Borrower’s written consent.  This
Guarantee shall remain in full force and effect until the Subsidiary Borrower
Obligations are paid in full and the Commitments are terminated.

(c)   No payment or payments made by any
Subsidiary Borrower or any other Person or received or collected by the
Administrative Agent or any Lender from any Subsidiary Borrower or any other
Person by virtue of any action or proceeding or any set-off or appropriation or
application, at any time or from time to time, in reduction of or in payment of
the Subsidiary Borrower Obligations shall be deemed to modify, reduce, release
or otherwise affect the liability of the Borrower hereunder which shall,
notwithstanding any such payment or payments (other than payments made by the
Borrower in respect of the Subsidiary Borrower Obligations or payments received
or collected from the Borrower in respect of the Subsidiary Borrower
Obligations), remain liable for the Subsidiary Borrower Obligations until the
Subsidiary Borrower Obligations are paid in full and the Revolving Commitments
are terminated.

(d)   The Borrower agrees that whenever, at any
time, or from time to time, it shall make any payment to the Administrative
Agent or any Lender on account of its liability hereunder, it will notify the
Administrative Agent and such Lender in writing that such payment is made under
this Guarantee for such purpose.

9.2           No Subrogation.  Notwithstanding
any payment or payments made by the Borrower hereunder, or any set-off or
application of funds of the Borrower by the Administrative Agent or any Lender,
the Borrower shall not be entitled to be subrogated to any of the rights of the
Administrative Agent or any Lender against any Subsidiary Borrower or against
any collateral security or guarantee or right of offset held by the Administrative
Agent or any Lender for the payment of the Subsidiary Borrower Obligations, nor
shall the Borrower seek or be entitled to seek any contribution or
reimbursement from any Subsidiary Borrower in respect of payments made by the
Borrower hereunder, until all amounts owing to the Administrative Agent and the
Lenders by any Subsidiary Borrower on

 47
 

 

account
of the Subsidiary Borrower Obligations are paid in full and the Commitments are
terminated.  If any amount shall be paid
to the Borrower on account of such subrogation rights at any time when all of
the Subsidiary Borrower Obligations shall not have been paid in full, such
amount shall be held by the Borrower in trust for the Administrative Agent and
the Lenders, segregated from other funds of the Borrower, and shall, forthwith
upon receipt by the Borrower, be turned over to the Administrative Agent in the
exact form received by the Borrower (duly indorsed by the Borrower to the
Administrative Agent, if required), to be applied against the Subsidiary Borrower
Obligations, whether matured or unmatured, in such order as the Administrative
Agent may determine.

9.3           Amendments, etc. with respect to
the Obligations; Waiver of Rights.  The Borrower shall remain
obligated hereunder notwithstanding that, without any reservation of rights
against the Borrower, and without notice to or further assent by the Borrower,
any demand for payment of any of the Subsidiary Borrower Obligations made by
the Administrative Agent or any Lender may be rescinded by the Administrative
Agent or such Lender, and any of the Subsidiary Borrower Obligations continued,
and the Subsidiary Borrower Obligations, or the liability of any other party
upon or for any part thereof, or any collateral security or guarantee therefor
or right of offset with respect thereto, may, from time to time, in whole or in
part, be renewed, extended, amended, modified, accelerated, compromised,
waived, surrendered or released by the Administrative Agent or any Lender, and
this Agreement and any other documents executed and delivered in connection
herewith may be amended, modified, supplemented or terminated, in whole or in
part, as the Administrative Agent (or the requisite Lenders, as the case may
be) may deem advisable from time to time, and any collateral security,
guarantee or right of offset at any time held by the Administrative Agent or
any Lender for the payment of the Subsidiary Borrower Obligations may be sold,
exchanged, waived, surrendered or released. 
Neither the Administrative Agent nor any Lender shall have any
obligation to protect, secure, perfect or insure any Lien at any time held by
it as security for the Subsidiary Borrower Obligations or for the Guarantee
under this Section 9 or any property subject thereto.  When making any demand hereunder against the
Borrower, the Administrative Agent or any Lender may, but shall be under no
obligation to, make a similar demand on any Subsidiary Borrower, and any
failure by the Administrative Agent or any Lender to make any such demand or to
collect any payments from any Subsidiary Borrower or any release of any
Subsidiary Borrower shall not relieve the Borrower of its obligations or
liabilities hereunder, and shall not impair or affect the rights and remedies,
express or implied, or as a matter of law, of the Administrative Agent or any
Lender against the Borrower.  For the
purposes hereof “demand” shall include the commencement and continuance of any
legal proceedings.

9.4           Guarantee Absolute and
Unconditional.  The Borrower waives any and all notice of the creation,
renewal, extension or accrual of any of the Subsidiary Borrower Obligations and
notice of or proof of reliance by the Administrative Agent or any Lender upon
this Guarantee or acceptance of the Guarantee under this Section 9; the
Subsidiary Borrower Obligations, and any of them, shall conclusively be deemed
to have been created, contracted or incurred, or renewed, extended, amended or
waived, in reliance upon the Guarantee under this Section 9; and all dealings
between any Subsidiary Borrower and the Borrower, on the one hand, and the
Administrative Agent and the Lenders, on the other, shall likewise be
conclusively presumed to have been had or consummated in reliance upon the
Guarantee under this Section 9.  The
Borrower waives diligence, presentment, protest, demand for payment and notice
of default or nonpayment to or upon any Subsidiary Borrower or the Borrower
with respect to the Subsidiary Borrower Obligations.  The Guarantee under this Section 9 shall be construed
as a continuing, absolute and unconditional guarantee of payment without regard
to (a) the validity or enforceability of this Agreement, any of the
Subsidiary Borrower Obligations or any other collateral security therefor or
guarantee or right of offset with respect thereto at any time or from time to
time held by the Administrative Agent or any Lender, (b) any defense,
set-off or counterclaim (other than a defense of payment or performance) which
may at any time be available to or be asserted by any Subsidiary Borrower
against the Administrative Agent or any Lender, or (c) any other
circumstance whatsoever

 48
 

 

(with
or without notice to or knowledge of such Subsidiary Borrower or the Borrower)
which constitutes, or might be construed to constitute, an equitable or legal
discharge of Subsidiary Borrower for its Subsidiary Borrower Obligations, or of
the Borrower under the guarantee under this Section 9, in bankruptcy or in any
other instance.  When pursuing its rights
and remedies hereunder against the Borrower, the Administrative Agent and any
Lender may, but shall be under no obligation to, pursue such rights and
remedies as it may have against any Subsidiary Borrower or any other Person or
against any collateral security or guarantee for the Subsidiary Borrower
Obligations or any right of offset with respect thereto, and any failure by the
Administrative Agent or any Lender to pursue such other rights or remedies or
to collect any payments from any Subsidiary Borrower or any such other Person
or to realize upon any such collateral security or guarantee or to exercise any
such right of offset, or any release of Subsidiary Borrower or any such other
Person or of any such collateral security, guarantee or right of offset, shall
not relieve the Borrower of any liability hereunder, and shall not impair or
affect the rights and remedies, whether express, implied or available as a
matter of law, of the Administrative Agent or any Lender against such
Subsidiary Borrower.  The Guarantee under
this Section 9 shall remain in full force and effect and be binding in
accordance with and to the extent of its terms upon the Borrower and its
successors and assigns thereof, and shall inure to the benefit of the
Administrative Agent and the Lenders, and their respective successors,
indorsees, transferees and assigns, until all the Subsidiary Borrower
Obligations and the obligations of the Borrower under the Guarantee under this
Section 9 shall have been satisfied by payment in full and the Revolving
Commitments shall be terminated, notwithstanding that from time to time during
the term of this Agreement any Subsidiary Borrower may be free from any
Subsidiary Borrower Obligations.

9.5           Reinstatement.  The
Guarantee under this Section 9 shall continue to be effective, or be
reinstated, as the case may be, if at any time payment, or any part thereof, of
any of the Subsidiary Borrower Obligations is rescinded or must otherwise be
restored or returned by the Administrative Agent or any Lender upon the
insolvency, bankruptcy, dissolution, liquidation or reorganization of any
Subsidiary Borrower or upon or as a result of the appointment of a receiver,
intervenor or conservator of, or trustee or similar officer for, any Subsidiary
Borrower or any substantial part of its property, or otherwise, all as though
such payments had not been made.

SECTION 10.   MISCELLANEOUS

10.1         Amendments and Waivers

(a)  Neither this Agreement, any other Loan
Document, nor any terms hereof or thereof may be amended, supplemented or
modified except in accordance with the provisions of this Section 10.1.  The Required Lenders and each Loan Party
party to the relevant Loan Document may, or, with the written consent of the
Required Lenders, the Administrative Agent and each Loan Party party to the
relevant Loan Document may, from time to time, (a) enter into written
amendments, supplements or modifications hereto and to the other Loan Documents
for the purpose of adding any provisions to this Agreement or the other Loan
Documents or changing in any manner the rights of the Lenders or of the Loan
Parties hereunder or thereunder or (b) waive, on such terms and conditions as
the Required Lenders or the Administrative Agent, as the case may be, may
specify in such instrument, any of the requirements of this Agreement or the
other Loan Documents or any Default or Event of Default and its consequences; provided,
however, that no such waiver and no such amendment, supplement or
modification shall (i) forgive the principal amount or extend the final
scheduled date of maturity of any Revolving Loan, reduce the stated rate of any
interest or fee payable hereunder (except (x) in connection with the waiver of
applicability of any post-default increase in interest rates (which waiver
shall be effective with the consent of the Required Lenders) and (y) that any
amendment or modification of defined terms used in the financial covenants in
this Agreement shall not constitute a reduction in the rate of interest or fees
for purposes of this clause (i)) or extend the scheduled date of any payment
thereof, or increase the amount or

 49
 

 

extend the expiration
date of any Lender’s Revolving Commitment, in each case without the written
consent of each Lender directly affected thereby;  (ii) eliminate or reduce the voting rights of
any Lender under this Section 10.1 without the written consent of such Lender;
(iii) reduce any percentage specified in the definition of Required Lenders,
consent to the assignment or transfer by the Borrower of any of its rights and
obligations under this Agreement and the other Loan Documents, or release all
or substantially all of the Subsidiary Guarantors from their obligations under
the Guarantee Agreement, in each case without the written consent of all
Lenders; (iv) amend, modify or waive any provision of Section 8 without the
written consent of the Administrative Agent; (v) add additional currencies as
Foreign Currencies in which Multicurrency Loans may be made under this
Agreement without the written consent of all the Lenders who are party to
Multicurrency Loans; or (vi) amend, modify or waive any provision of Section
2.3 or 2.4 without the written consent of the Swingline Lender.  Any such waiver and any such amendment,
supplement or modification shall apply equally to each of the Lenders and shall
be binding upon the Loan Parties, the Lenders, the Administrative Agent and all
future holders of the Revolving Loans. 
In the case of any waiver, the Loan Parties, the Lenders and the
Administrative Agent shall be restored to their former position and rights
hereunder and under the other Loan Documents, and any Default or Event of Default
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.

(b)  This Agreement may be
amended without consent of the Lenders, so long as no Default or Event of
Default shall have occurred and be continuing, as follows:

(i)   This
Agreement will be amended to designate any of Synopsys International Limited
and Nihon Synopsys KK as a Subsidiary Borrower upon (u) ten Business Days’ prior
notice to the Lenders (such notice to contain the name, primary business
address and taxpayer identification number of such Subsidiary), (v) the
execution and delivery by the Borrower, such Subsidiary and the Administrative
Agent of a Joinder Agreement, substantially in the form of Exhibit F (a “Joinder
Agreement”), providing for such Subsidiary to become a Subsidiary Borrower,
(w) the agreement and acknowledgment by the Borrower and each other Subsidiary
Borrower that the Guarantee contained in Section 9 covers the Obligations of
such Subsidiary, (x) the agreement and acknowledgment by the Subsidiary
Guarantors that the Guarantee Agreement covers the Obligations of such
Subsidiary, (y) the delivery by such Subsidiary of evidence that such
Subsidiary has appointed an agent for service of legal process in the State of
New York reasonably acceptable to the Administrative Agent and (z) the delivery
to the Administrative Agent of (1) corporate or other applicable resolutions,
other corporate or other applicable documents, certificates, representations,
warranties and legal opinions in respect of such Subsidiary substantially
equivalent to comparable documents delivered on the Closing Date and (2) such
other documents with respect thereto as the Administrative Agent shall
reasonably request.  For the avoidance of
doubt, this Section 10.1(b)(i) is applicable only to each of Synopsys
International Limited and Nihon Synopsys KK.

(ii)   This
Agreement will be amended to remove any Subsidiary as a Subsidiary Borrower
upon execution and delivery by the Borrower to the Administrative Agent of a
written notification to such effect and repayment in full of all Revolving
Loans made to such Subsidiary Borrower and repayment in full of all other
amounts owing by such Subsidiary Borrower under this Agreement (it being agreed
that any such repayment shall be in accordance with the other terms of this
Agreement); provided, however, that no such amendment shall
affect or limit the Borrower’s obligations under the Guarantee.

10.2         Notices.  All notices, requests and demands to or upon
the respective parties hereto to be effective shall be in writing (including by
telecopy), and, unless otherwise expressly provided

 50
 

 

herein,
shall be deemed to have been duly given or made when delivered, or three
Business Days after being deposited in the mail, postage prepaid, or, in the
case of telecopy notice, when received, addressed as follows in the case of the
Borrower and the Administrative Agent, and as set forth in an administrative
questionnaire delivered to the Administrative Agent in the case of the Lenders,
or to such other address as may be hereafter notified by the respective parties
hereto:

	
  Borrower and

  Subsidiary
  Borrower:

  	
   

  	
  700 East Middlefield Road

  Mountain View, California 94043

  
	
   

  	
   

  	
  Attention: Treasurer

  
	
   

  	
   

  	
  Telecopy: (650) 584-4240

  
	
   

  	
   

  	
  Telephone: (650) 962-5000

  
	
   

  	
   

  	
  With a copy to: VP and General Counsel

  
	
   

  	
   

  	
   

  
	
  Administrative
  Agent:

  	
   

  	
  JPMorgan Loan Services

  JPMorgan Chase Bank

  10 South Dearborn, 19th Floor

  Chicago, IL 60603

  
	
   

  	
   

  	
  Attention: Shawuana Simmons

  
	
   

  	
   

  	
  Telecopy: (312) 385-7096

  
	
   

  	
   

  	
  Telephone: (312) 385-7073

  
	
   

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
  Loan
  and Agency Services 

  JP
  Morgan Europe Limited 

  125 London Wall, 9th Floor 

  London EC2Y 5AJ 

  United Kingdom

  
	
   

  	
   

  	
  Attention: James Beard

  
	
   

  	
   

  	
  Telecopy: + 44 (0) 207 777 2360

  
	
   

  	
   

  	
  Telephone: + 44 (0) 207 777 2355

  
	
   

  	
   

  	
   

  

provided that any notice, request or demand to or
upon the Administrative Agent or the Lenders shall not be effective until
received.

Notices and other
communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative
Agent; provided that the foregoing shall not apply to notices pursuant
to Section 2 unless otherwise agreed by the Administrative Agent and the
applicable Lender.  The Administrative
Agent, the Borrower  and any Subsidiary
Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided that approval of such procedures may
be limited to particular notices or communications.

10.3         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 or under the other Loan Documents 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.

10.4         Survival of Representations and
Warranties.  All representations and
warranties made hereunder, in the other Loan Documents and in any document, certificate
or statement delivered

 51
 

 

pursuant
hereto or in connection herewith shall survive the execution and delivery of
this Agreement and the making of the Revolving Loans and other extensions of
credit hereunder.

10.5         Payment of Expenses and Taxes.  The Borrower and each Subsidiary Borrower
agrees (a) to pay or reimburse the Administrative Agent for all its reasonable
out-of-pocket costs and expenses incurred in connection with the
development, preparation and execution of, and any amendment, supplement or
modification to, this Agreement and the other Loan Documents and any other
documents prepared in connection herewith or therewith, and the consummation of
the transactions contemplated hereby and thereby, including the reasonable fees
and disbursements of outside counsel to the Administrative Agent and filing and
recording fees and expenses, with statements with respect to the foregoing to
be submitted to the Borrower at least one Business Day prior to the Closing
Date (in the case of amounts to be paid on the Closing Date) and from time to
time thereafter on a quarterly basis or such other periodic basis as the
Administrative Agent shall deem appropriate, (b) to pay or reimburse each
Lender and the Administrative Agent for all its costs and expenses incurred in
connection with the enforcement or preservation of any rights under this
Agreement, the other Loan Documents and any such other documents, including the
fees and disbursements of outside counsel to each Lender and of outside counsel
to the Administrative Agent, (c) to pay, indemnify, and hold each Lender and
the Administrative Agent 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 taxes, if any, that 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, this Agreement, the other Loan Documents and any such other
documents, and (d) to pay, indemnify, and hold each Lender and the
Administrative Agent and their respective officers, directors, employees,
affiliates, agents and controlling persons (each, an “Indemnitee”)
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 and  performance of this
Agreement, the other Loan Documents and any such other documents, including any
of the foregoing relating to the use of proceeds of the Revolving Loans or the
violation of, noncompliance with or liability under, any Environmental Law
applicable to the operations of any Group Member or any of the Properties and
the reasonable fees and expenses of legal counsel in connection with claims,
actions or proceedings by any Indemnitee against any Loan Party under any Loan
Document, excluding litigation commenced by the Borrower against any of the
Administrative Agent or the Lenders which (i) seeks enforcement of any of the
Borrower’s rights hereunder and (ii) is determined adversely to any of the
Administrative Agent or the Lenders in final and nonappealable decision of a
court of competent jurisdiction (all the foregoing in this clause (d),
collectively, the “Indemnified Liabilities”), provided, that
neither the Borrower nor any Subsidiary Borrower shall have any obligation
hereunder to any Indemnitee with respect to Indemnified Liabilities to the
extent such Indemnified Liabilities are found by a final and nonappealable
decision of a court of competent jurisdiction to have resulted from the bad
faith, gross negligence or willful misconduct of such Indemnitee.  Without limiting the foregoing, and to the
extent permitted by applicable law, the Borrower agrees not to assert and to
cause its Subsidiaries not to assert, and hereby waives and agrees to cause its
Subsidiaries to waive, all rights for contribution or any other rights of
recovery with respect to all claims, demands, penalties, fines, liabilities,
settlements, damages, costs and expenses of whatever kind or nature, under or
related to Environmental Laws, that any of them might have by statute or
otherwise against any Indemnitee.  All
amounts due under this Section 10.5 shall be payable not later than 10 days
after written demand therefor. 
Statements payable by the Borrower pursuant to this Section 10.5 shall
be submitted to Treasurer (Telephone No. (650) 962-5000) (Telecopy No.
(650) 584-4240), at the address of the Borrower set forth in Section 10.2, or
to such other Person or address as may be hereafter designated by the Borrower
in a written notice to the Administrative Agent.  The agreements in this Section 10.5 shall
survive repayment of the Revolving Loans and all other amounts payable
hereunder.

 

 52

 

10.6         Successors
and Assigns; Participations and Assignments.  (a) 
The provisions of this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that (i) neither the Borrower nor any Subsidiary
Borrower may assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by the Borrower or any Subsidiary Borrower without such
consent shall be null and void) and (ii) no Lender may assign or otherwise
transfer its rights or obligations hereunder except in accordance with this
Section.

(b)  (i) Subject
to the conditions set forth in paragraph (b)(ii) below, any Lender may in
accordance with applicable law assign to one or more assignees (each, an “Assignee”)
all or a portion of its rights and obligations under this Agreement (including
all or a portion of its Revolving Commitments and the Revolving Loans at the
time owing to it) with the prior written consent of:

(A)          the
Borrower (such consent not to be unreasonably withheld), provided that
no consent of the Borrower shall be required for an assignment to a Lender, an
affiliate of a Lender or, if an Event of Default has occurred and is
continuing, any other Person; and

(B)           the
Administrative Agent (such consent not to be unreasonably withheld).

(ii)           Assignments
shall be subject to the following additional conditions:

(A)          except
in the case of an assignment to a Lender or an affiliate of a Lender or an
assignment of the entire remaining amount of the assigning Lender’s Revolving
Commitments or Revolving Loans, the amount of the Revolving Commitments or
Revolving Loans of the assigning Lender subject to each such assignment (determined
as of the date the Assignment and Assumption with respect to such assignment is
delivered to the Administrative Agent) shall not be less than $5,000,000 unless
each of the Borrower and the Administrative Agent otherwise consent, provided
that (1) no such consent of the Borrower shall be required if an Event of
Default under Section 8(a) or (f) has occurred and is continuing and (2) such
amounts shall be aggregated in respect of each Lender and its affiliates, if
any;

(B)           the
parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation
fee of $3,500; and

(C)           the
Assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an administrative questionnaire.

(iii)          Subject
to acceptance and recording thereof pursuant to paragraph (b)(iv) below,
from and after the effective date specified in each Assignment and Assumption
the Assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and obligations of
a Lender under this Agreement, and the assigning Lender thereunder shall, to
the extent of the interest assigned by such Assignment and Assumption, be
released from its obliga­tions under this Agreement (and, in the case of an
Assignment and Assumption covering all of the assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a party hereto
but shall continue to be entitled to the benefits of Sections 2.15, 2.16,
2.17 and 10.5).  Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does
not comply with this Section 10.6 shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (c) of this Section.

 53
 

 

(iv)          The
Administrative Agent, acting for this purpose as an agent of the Borrower,
shall maintain at one of its offices a copy of each Assignment and Assumption delivered
to it and a register for the recordation of the names and addresses of the
Lenders, and the Revolving Commitments of, and principal amount of the
Revolving Loans owing to, each Lender pursuant to the terms hereof from time to
time (the “Register”).  The
entries in the Register shall be conclusive, and the Borrower, any Subsidiary
Borrower, the Administrative Agent and the Lenders may treat each Person whose
name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary.

(v)           Upon
its receipt of a duly completed Assignment and Assumption executed by an
assigning Lender and an Assignee, the Assignee’s completed administrative
questionnaire (unless the Assignee shall already be a Lender hereunder), the
processing and recordation fee referred to in paragraph (b) of this
Section and any written consent to such assignment required by paragraph (b) of
this Section, the Administrative Agent shall accept such Assignment and
Assumption and record the information contained therein in the Register.  No assignment shall be effective for purposes
of this Agreement unless it has been recorded in the Register as provided in
this paragraph.

(c)  (i) 
Any Lender may, in accordance with applicable law, without the consent
of the Borrower or the Administrative Agent, sell participations to one or more
banks or other entities (a “Participant”) in all or a portion of such
Lender’s rights and obligations under this Agreement (including all or a
portion of its Revolving Commitments and the Revolving Loans owing to it); provided
that (A) such Lender’s obligations under this Agreement shall remain
unchanged, (B) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations and (C) the
Borrower, the Administrative Agent and the other Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights
and obligations under this Agreement. 
Any agreement pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision
of this Agreement; provided that such agreement may provide that such
Lender will not, without the consent of the Participant, agree to any
amendment, modification or waiver that (1) requires the consent of each Lender
directly affected thereby pursuant to the proviso to the second sentence of Section
10.1 and (2) directly affects such Participant. 
Subject to paragraph (c)(ii) of this Section, the Borrower agrees that
each Participant shall be entitled to the benefits of Sections 2.15, 2.16 and
2.17 to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 10.7(b) as
though it were a Lender, provided such Participant shall be subject to Section
10.7(a) as though it were a Lender.

(ii)           A
Participant shall not be entitled to receive any greater payment under Section
2.15 or 2.16 than the applicable Lender would have been entitled to receive
with respect to the participation sold to such Participant, unless the sale of
the participation to such Participant is made with the Borrower’s prior written
consent which specifically acknowledges the Participant’s entitlement to any
such greater payment (and the provisions of this Section 10.6(c) shall not in
any manner be deemed to constitute such prior written consent).  Any Participant that is a Non-U.S. Lender
shall not be entitled to the benefits of Section 2.16 unless such
Participant complies with Section 2.16(d).

(d)  Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement to
secure obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank, and this Section shall not apply to any
such pledge or assignment of a security interest; 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.

 54
 

 

(e)  The Borrower, upon receipt of written notice
from the relevant Lender, agrees to issue Notes to any Lender requiring Notes
to facilitate transactions of the type described in paragraph (d) above.

10.7         Adjustments; Set-off.  (a) 
Except to the extent that this Agreement expressly provides for payments
to be allocated to a particular Lender, if any Lender (a “Benefited Lender”)
shall, at any time after the Revolving Loans and other amounts payable
hereunder shall immediately become due and payable pursuant to Section 7
receive any payment of all or part of the Obligations owing to it, 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(f), or
otherwise), in a greater proportion than any such payment to or collateral
received by any other Lender, if any, in respect of the Obligations owing to
such other Lender, such Benefited Lender shall purchase for cash from the other
Lenders a participating interest in such portion of the Obligations owing to
each such other Lender, or shall provide such other Lenders with the benefits
of any such collateral, as shall be necessary to cause such Benefited Lender to
share the excess payment or benefits of such collateral 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.

(b)  In addition to any rights and remedies of the
Lenders provided by law, each Lender 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, upon any amount becoming due and payable by
the Borrower hereunder (whether at the stated maturity, by acceleration or
otherwise), to set off and appropriate and apply against such amount 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 or owing by such Lender or any branch or agency
thereof to or for the credit or the account of the Borrower.  Each Lender agrees promptly to notify the
Borrower and the Administrative Agent after any such setoff and application
made by such Lender, provided that the failure to give such notice shall
not affect the validity of such setoff and application.

10.8         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 instrument.  Delivery of an
executed signature page of this Agreement by facsimile transmission shall be
effective as delivery of a manually executed counterpart hereof.  A set of the copies of this Agreement signed
by all the parties shall be lodged with the Borrower and the Administrative
Agent.

10.9         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.

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

 55
 

 

10.11       GOVERNING LAW. 
THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK.

10.12       Submission To Jurisdiction; Waivers.  The Borrower and each Subsidiary Borrower
hereby irrevocably and unconditionally:

(a)   submits for itself and its property in any
legal action or proceeding relating to this Agreement and the other Loan
Documents to which it is a party, or for recognition and enforcement of any
judgment in respect thereof, to the non-exclusive general jurisdiction of
the courts of the State of New York, the courts of the United States for the
Southern District of New York, and appellate courts from any thereof;

(b)   consents that any such action or proceeding
may be brought in such courts and waives any objection that it may now or
hereafter have to the venue of any such action or proceeding in any such court
or that such action or proceeding was brought in an inconvenient court and
agrees not to plead or claim the same;

(c)   agrees that service of process in any such
action or proceeding may be effected by mailing a copy thereof by registered or
certified mail (or any substantially similar form of mail), postage prepaid, to
the Borrower, as the case may be at its address set forth in Section 10.2 or at
such other address of which the Administrative Agent shall have been notified
pursuant thereto;

(d)   agrees that nothing herein shall affect the
right to effect service of process in any other manner permitted by law or
shall limit the right to sue in any other jurisdiction; and

(e)   waives, to the maximum extent not prohibited
by law, any right it may have to claim or recover in any legal action or
proceeding referred to in this Section any special, exemplary, punitive or
consequential damages.

10.13       Acknowledgements.  The Borrower and each Subsidiary Guarantor
hereby acknowledges that:

(a)   it has been advised by counsel in the
negotiation, execution and delivery of this Agreement and the other Loan
Documents;

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

(c)    no joint venture is created hereby or by
the other Loan Documents or otherwise exists by virtue of the transactions
contemplated hereby among the Lenders or among the Borrower and the Lenders.

10.14       Releases of Guarantees.  (a) 
Notwithstanding anything to the contrary contained herein or in any
other Loan Document, the Administrative Agent is hereby irrevocably authorized
by each Lender (without requirement of notice to or consent of any Lender
except as expressly required by Section 10.1) to take any action requested by
the Borrower having the effect of releasing any guarantee

 56
 

 

obligations
(i) to the extent necessary to permit consummation of any transaction not
prohibited by any Loan Document or that has been consented to in accordance
with Section 10.1 or (ii) under the circumstances described in paragraph (b)
below.

(b)  At such time as the Revolving Loans and the
other obligations under the Loan Documents (other than obligations under or in
respect of Swap Agreements) shall have been paid in full and the Revolving
Commitments have been terminated, the Guarantee Agreement and all obligations
(other than those expressly stated to survive such termination) of the
Administrative Agent and each Loan Party under the Guarantee Agreement shall
terminate, all without delivery of any instrument or performance of any act by
any Person.

10.15       Confidentiality. 
Each of the Administrative Agent and each Lender agrees to keep
confidential all non-public information provided to it by any Loan Party, the
Administrative Agent or any Lender pursuant to or in connection with this
Agreement that is designated by the provider thereof as confidential; provided
that nothing herein shall prevent the Administrative Agent or any Lender from
disclosing any such information (a) to the Administrative Agent, any other
Lender or any affiliate thereof, (b) subject to an agreement to comply with the
provisions of this Section, to any actual or prospective Transferee or any
direct or indirect counterparty to any Swap Agreement (or any professional
advisor to such counterparty), (c) to its employees, directors, agents,
attorneys, accountants and other professional advisors or those of any of its
affiliates, (d) upon the request or demand of any Governmental Authority, (e)
in response to any order of any court or other Governmental Authority or as may
otherwise be required pursuant to any Requirement of Law, (f) if requested or
required to do so in connection with any litigation or similar proceeding, (g)
that has been publicly disclosed under circumstances not otherwise in violation
of this Section 10.15, (h) to the National Association of Insurance
Commissioners or any similar organization or any nationally recognized rating
agency that requires access to information about a Lender’s investment
portfolio in connection with ratings issued with respect to such Lender, or (i)
in connection with the exercise of any remedy hereunder or under any other Loan
Document.

10.16       WAIVERS OF JURY TRIAL.  THE BORROWER, EACH SUBSIDIARY BORROWER, THE
ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

10.17       USA Patriot Act.  Each
Lender hereby notifies the Borrower and each Subsidiary Borrower that pursuant
to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed
into law October 26, 2001)) (the “Act”), it is required to obtain,
verify and record information that identifies the Borrower and each Subsidiary
Borrower, which information includes the name and address of the Borrower and
each Subsidiary Borrower and other information that will allow such Lender to
identify the Borrower and each Subsidiary Borrower in accordance with the Act.

 57
 

 

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

	
   

  	
   

  	
  SYNOPSYS, INC.

  
	
   

  	
   

  	
  By: /s/Brian
  M. Beattie

  
	
   

  	
   

  	
  Name: Brian M.
  Beattie

  
	
   

  	
   

  	
  Title: Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  JPMORGAN CHASE
  BANK, N.A., as Administrative

  
	
   

  	
   

  	
  Agent and as a
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: /s/ Anne
  Biancardi

  
	
   

  	
   

  	
  Name: Anne
  Biancardi

  
	
   

  	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANK OF AMERICA,
  N.A., as Syndication Agent and

  
	
   

  	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: /s/ Kevin McMahon

  
	
   

  	
   

  	
  Name: Kevin McMahon

  
	
   

  	
   

  	
  Title: Senior Vice President

  

 

 

 58
 

 

 

	
  

  	
   

  	
  Citibank N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: /s/ Steve Zuvich

  
	
   

  	
   

  	
  Name: Steve Zuvich

  
	
   

  	
   

  	
  Title: Vice President

  

 59
 

 

 

	
   

  	
  Mizuho Corporate Bank Ltd.
  New York Branch

  
	
   

  	
   

  
	
   

  	
  By: /s/
  Bertram H. Tang

  
	
   

  	
  Name: Bertram H.
  Tang

  
	
   

  	
  Title: Senior
  Vice President & Team Leader

  

 

 

 

 60
 

 

 

	
   

  	
  Union Bank of California,
  N.A.

  
	
   

  	
   

  
	
   

  	
  By: /s/ James
  B. Goudy

  
	
   

  	
  Name: James B.
  Goudy

  
	
   

  	
  Title: Vice
  President

  

 

 61
 

 

 

	
   

  	
  U.S. Bank National
  Association

  
	
   

  	
   

  
	
   

  	
  By: /s/
  Timothy D. Myers

  
	
   

  	
  Name: Timothy D.
  Myers

  
	
   

  	
  Title: Vice
  President

  

 

 

 62
 

 

 

	
   

  	
  Wells Fargo Bank, N.A.

  
	
   

  	
   

  
	
   

  	
  By: /s/
  Jillian L.R. Bales

  
	
   

  	
  Name: Jillian
  L.R. Bales

  
	
   

  	
  Title: Vice
  President

  

 

 

 63
 

 

 

	
   

  	
  BNP Paribas

  
	
   

  	
  By: /s/
  Stuart Darby

  
	
   

  	
  Name: Stuart
  Darby

  
	
   

  	
  Title: Vice
  President

  
	
   

  
	
   

  	
  By: /s/ Sandy
  Bertram

  
	
   

  	
  Name: Sandy
  Bertram

  
	
   

  	
  Title: Vice
  President

  

 

 

 64

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