Document:

<PAGE>

                                                                    EXHIBIT 10.2

[NORDEA LOGO]

Private & Confidential

To:   Gulf Offshore N.S. Limited
      184-192 Market Street
      Aberdeen AB11 5PQ
      Scotland

      GulfMark Rederi AS
      (formerly known as GulfMark Norge AS)
      Strandgaten 5
      Sandnes, Norway

      GulfMark Offshore, Inc.
      4400 Post Oak Parkway, Suite 1170
      Houston, Texas 77027

                                                                17 November 2004

Gentlemen,

US $100,000,000 MILLION SENIOR SECURED REDUCING REVOLVING MULTI-CURRENCY CREDIT
FACILITY DATED 26 JUNE 2002

1     We refer to:

      (a)   the Facility Agreement dated 26 June 2002 made between (1) Gulf
            Offshore N.S. Limited, GulfMark Rederi AS (formerly known as
            GulfMark Norge AS) and GulfMark Offshore, Inc (the "BORROWERS") (2)
            GulfMark Offshore, Inc. (the "GUARANTOR") (3) Nordea Bank Norge ASA
            ("NORDEA") and The Royal Bank of Scotland plc ("RBS") (the
            "ARRANGERS"), (4) The banks and financial institutions whose names
            and addresses are set out in Schedule 1 of the Agreement as the
            Lenders (the "LENDERS"), (5) Nordea (as "FACILITY AGENT" and
            "SECURITY TRUSTEE") and (6) Danish Ship Finance (as "CO-ARRANGER")
            (the "FACILITY AGREEMENT"); and

      (b)   the letter dated 19 October 2004 from the Guarantor to the Facility
            Agent requesting that certain amendments be made to the Facility
            Agreement (the "AMENDMENT REQUEST LETTER").

2     Unless the context otherwise requires, words and expressions used in this
      letter shall have the meaning given to them in the Facility Agreement.

3     The amendments requested by the Amendment Request Letter require the
      approval of all the Lenders pursuant to the provisions of clause
      2.4(b)(viii) of the Agency Agreement. We have notified the Lenders of the
      amendments requested by the Amendment Request Letter and have

<PAGE>

[NORDEA LOGO]

      obtained their written approval to the amendments being made in accordance
      with the terms and conditions of this letter.

4     In consideration of the payment by the Borrowers and or the Guarantor on
      their behalf (as the case may be) of a fee of $10,000 for each Lender, we
      can confirm that with effect from the Effective Date the Lenders have
      agreed the following amendments to the Facility Agreement:

      (a)   clause 10.3(a) - shall be deleted in its entirety and the words
            "INTENTIONALLY DELETED" inserted therefore; and

      (b)   clause 10.5(a) - shall be amended in its entirety and the following
            clause inserted therefore:

            "(a)  the ratio of Consolidated EBITDA (prevailing during the four
                  (4) financial quarters ending on each Quarterly Financial
                  Statements Preparation Date) to Consolidated Interest Expenses
                  (prevailing during the four (4) financial quarters ending on
                  each Quarterly Financial Statements Preparation Date) is:

                  (i)   during the period commencing on the 30 September 2004
                        until the Quarterly Financial Statement Preparation Date
                        ending on (and for the avoidance of doubt including) 30
                        September 2005, 2.00 to 1.00; and

                  (ii)  during the period commencing after the period described
                        in clause 10.5(a)(i) until the last day of the Security
                        Period, 2.75 to 1.00;".

5     The amendments to the Facility Agreement set out in paragraph 4 of this
      letter shall only become effective upon the date (the "EFFECTIVE DATE") on
      which:

      (a)   the Facility Agent receives the fees described in paragraph 4 of
            this letter with respect to each Lender; and

      (b)   this letter has been returned duly executed by each of the Borrowers
            and the Guarantor by a duly authorised officer or officers; and

      (c)   the Facility Agent is satisfied that the preceding provisions of
            paragraph 5 of this letter have been complied with and has notified
            the Borrowers and the Guarantor in writing of such satisfaction,

      whereupon the Facility Agreement shall be amended and shall continue in
      full force and effect save as amended by this letter.

6     Following the execution of this letter on behalf of the Borrowers and the
      Guarantor, the Facility Agent shall be entitled to circulate a copy of
      this letter to each of the Lenders.

                                       2
<PAGE>
[NORDEA LOGO]

7     This letter shall be governed by English Law.

Yours faithfully

    By: /s/ Knut J. Hatleskog                     /s/ Kristine Erdal
        ---------------------------------         -----------------------------
        Knut J. Hatleskog                         Kristine Erdal
        Head of Sydicated Loans.                  Senior Relationship Manager

For and on behalf of:
NORDEA BANK NORGE ASA
(in its capacity as Facility Agent)

We acknowledge receipt of this letter and confirm our agreement to its terms
and conditions

By: /s/ Edward A. Guthrie
    -----------------------------
For and on behalf of
GULF OFFSHORE N.S. LIMITED
(As a Borrower)

By: /s/ Edward A. Guthrie
    -----------------------------
For and on behalf of
GULFMARK REDERI AS
(FORMERLY KNOWN AS GULFMARK NORGE AS)
(As a Borrower)

By: /s/ Edward A. Guthrie
    -----------------------------
For and on behalf of
GULFMARK OFFSHORE, INC.
(As a Borrower)

                                       3
<PAGE>

[NORDEA LOGO]

The Guarantor confirms that its obligations under the guarantee contained in
clause 15 of the Facility Agreement shall remain in full force and effect in
respect of the obligations of each Borrower under the Facility Agreement (as
amended by this letter) and that the obligations of each Borrower under this
letter constitute obligations included within the Guarantor's obligations under
clause 15 of the Facility Agreement.

By: /s/ Edward A. Guthrie
    ------------------------

For and on behalf of

GULFMARK OFFSHORE, INC.

(As the Guarantor)

                                       4exv10w1

 

$75,000,000

CREDIT AGREEMENT

dated as of December 23, 2004,

by and among

PHARMACEUTICAL RESEARCH ASSOCIATES, INC.,

a Virginia corporation,

PHARMACEUTICAL RESEARCH ASSOCIATES, GmbH

a company organized under the laws of Germany,

PHARM RESEARCH ASSOCIATES (UK) LIMITED,

a company organized under the laws of England and Wales,

as Borrowers,

PHARMACEUTICAL RESEARCH ASSOCIATES INTERNATIONAL, INC.,

a company organized under the laws of Canada,

as the Canadian Borrower,

PRA INTERNATIONAL,

a Delaware corporation,

PRA SUB, INC.,

a Delaware corporation,

PRA INTERNATIONAL OPERATIONS, INC.

a Delaware corporation,

as Parents

the Lenders referred to herein,

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Administrative Agent,

Swingline Lender and Issuing Lender,

CANADIAN IMPERIAL BANK OF COMMERCE,

as Canadian Dollar Lender,

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Syndication Agent and

Issuing Lender,

WACHOVIA CAPITAL MARKETS, LLC

as Co-Lead Arranger and Sole Book Manager

and

WELLS FARGO BANK, NATIONAL ASSOCIATION

as Co-Lead Arranger

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	SECTION 1.1 Definitions
	 	 	1	 
	SECTION 1.2 Other Definitions and Provisions
	 	 	23	 
	SECTION 1.3 Accounting Terms
	 	 	23	 
	SECTION 1.4 UCC Terms
	 	 	24	 
	SECTION 1.5 Rounding
	 	 	24	 
	SECTION 1.6 References to Agreement and Laws
	 	 	24	 
	SECTION 1.7 Times of Day
	 	 	24	 
	SECTION 1.8 Letter of Credit Amounts; Other Amounts
	 	 	24	 
	SECTION 1.9 Effectiveness of Euro Provisions
	 	 	24	 
	ARTICLE II REVOLVING CREDIT FACILITY
	 	 	24	 
	SECTION 2.1 Revolving Credit Loans
	 	 	24	 
	SECTION 2.2 Canadian Dollar Loans
	 	 	25	 
	SECTION 2.3 Swingline Loans
	 	 	27	 
	SECTION 2.4 Procedure for Advances of Loans
	 	 	29	 
	SECTION 2.5 Repayment of Loans
	 	 	31	 
	SECTION 2.6 Permanent Reduction of the Aggregate Commitment
	 	 	34	 
	SECTION 2.7 Termination of Revolving Credit Facility
	 	 	35	 
	SECTION 2.8 Nature of Obligations
	 	 	35	 
	SECTION 2.9 Increase of Aggregate Commitment
	 	 	35	 
	ARTICLE III LETTER OF CREDIT FACILITY
	 	 	37	 
	SECTION 3.1 L/C Commitment
	 	 	37	 
	SECTION 3.2 Procedure for Issuance of Letters of Credit
	 	 	37	 
	SECTION 3.3 Commissions and Other Charges
	 	 	38	 
	SECTION 3.4 L/C Participations
	 	 	38	 
	SECTION 3.5 Reimbursement Obligation of the Borrowers
	 	 	40	 
	SECTION 3.6 Obligations Absolute
	 	 	41	 
	SECTION 3.7 Effect of Letter of Credit Application
	 	 	41	 
	ARTICLE IV GENERAL LOAN PROVISIONS
	 	 	41	 
	SECTION 4.1 Interest
	 	 	41	 
	SECTION 4.2 Notice and Manner of Conversion or Continuation of Revolving Credit Loans
	 	 	44	 
	SECTION 4.3 Fees
	 	 	45	 
	SECTION 4.4 Manner of Payment
	 	 	45	 
	SECTION 4.5 Evidence of Indebtedness
	 	 	47	 
	SECTION 4.6 Adjustments
	 	 	48	 
	SECTION 4.7 Nature of Obligations of Lenders Regarding Extensions of
Credit; Assumption by the Administrative Agent
	 	 	48	 
	SECTION 4.8 Redenomination of Alternative Currency Loans
	 	 	49	 

i

 

	 	 	 	 	 
	SECTION 4.9. Regulatory Limitation
	 	 	50	 
	SECTION 4.10 Changed Circumstances
	 	 	50	 
	SECTION 4.11 Indemnity
	 	 	51	 
	SECTION 4.12 Increased Costs
	 	 	52	 
	SECTION 4.13 Taxes
	 	 	54	 
	SECTION 4.14 Mitigation Obligations; Replacement of Lenders
	 	 	57	 
	SECTION 4.15 Redenomination of Canadian Dollar Loans
	 	 	58	 
	SECTION 4.16 U.S. Borrower as Agent for the Foreign Borrowers
	 	 	58	 
	SECTION 4.17. Rounding and Other Reasonable Changes
	 	 	58	 
	ARTICLE V CLOSING; CONDITIONS OF CLOSING AND BORROWING
	 	 	58	 
	SECTION 5.1 Closing
	 	 	58	 
	SECTION 5.2 Conditions to Closing and Initial Extensions of Credit
	 	 	58	 
	SECTION 5.3 Conditions to All Extensions of Credit
	 	 	62	 
	ARTICLE VI REPRESENTATIONS AND WARRANTIES OF THE BORROWERS
	 	 	62	 
	SECTION 6.1 Representations and Warranties
	 	 	62	 
	SECTION 6.2
Survival of Representations and Warranties, Etc.
	 	 	70	 
	ARTICLE VII FINANCIAL INFORMATION AND NOTICES
	 	 	70	 
	SECTION 7.1 Financial Statements and Projections
	 	 	70	 
	SECTION 7.2 Officer’s Compliance Certificate
	 	 	72	 
	SECTION 7.3 Accountants’ Certificate
	 	 	72	 
	SECTION 7.4 Other Reports
	 	 	72	 
	SECTION 7.5 Notice of Litigation and Other Matters
	 	 	72	 
	ARTICLE VIII AFFIRMATIVE COVENANTS
	 	 	73	 
	SECTION 8.1 Preservation of Corporate Existence and Related Matters
	 	 	73	 
	SECTION 8.2 Maintenance of Property
	 	 	74	 
	SECTION 8.3 Insurance
	 	 	74	 
	SECTION 8.4 Accounting Methods and Financial Records
	 	 	74	 
	SECTION 8.5 Payment and Performance of Obligations
	 	 	74	 
	SECTION 8.6 Compliance With Laws and Approvals
	 	 	74	 
	SECTION 8.7 Environmental Laws
	 	 	74	 
	SECTION 8.8 Compliance with ERISA
	 	 	75	 
	SECTION 8.9 Compliance With Agreements
	 	 	75	 
	SECTION 8.10 Visits and Inspections
	 	 	75	 
	SECTION 8.11 Additional Subsidiaries
	 	 	76	 
	SECTION 8.12 Use of Proceeds
	 	 	76	 
	SECTION 8.13 Further Assurances
	 	 	76	 
	ARTICLE IX FINANCIAL COVENANTS
	 	 	76	 
	SECTION 9.1 Maximum Total Leverage Ratio
	 	 	76	 

ii

 

	 	 	 	 	 
	SECTION 9.2 Minimum Fixed Charge Coverage Ratio
	 	 	77	 
	SECTION 9.3 Minimum Net Worth
	 	 	77	 
	ARTICLE X NEGATIVE COVENANTS
	 	 	77	 
	SECTION 10.1 Limitations on Indebtedness
	 	 	77	 
	SECTION 10.2 Limitations on Liens
	 	 	79	 
	SECTION 10.3 Limitations on Loans, Advances, Investments and Acquisitions
	 	 	80	 
	SECTION 10.4 Limitations on Mergers and Liquidation
	 	 	82	 
	SECTION 10.5 Limitations on Sale of Assets
	 	 	83	 
	SECTION 10.6 Limitations on Dividends and Distributions
	 	 	84	 
	SECTION 10.7 Limitations on Exchange and Issuance of Capital Stock
	 	 	84	 
	SECTION 10.8 Transactions with Affiliates
	 	 	85	 
	SECTION 10.9 Certain Accounting Changes; Organizational Documents
	 	 	85	 
	SECTION 10.10 Amendments; Payments and Prepayments of Subordinated Indebtedness
	 	 	85	 
	SECTION 10.11 Restrictive Agreements
	 	 	85	 
	SECTION 10.12 Nature of Business
	 	 	86	 
	ARTICLE XI UNCONDITIONAL GUARANTY
	 	 	86	 
	SECTION 11.1 Guaranty of Obligations
	 	 	86	 
	SECTION 11.2 Bankruptcy Limitations on each Parent Guarantor
	 	 	86	 
	SECTION 11.3 Nature of Guaranty
	 	 	87	 
	SECTION 11.4 Demand by the Administrative Agent
	 	 	88	 
	SECTION 11.5 Waivers
	 	 	88	 
	SECTION 11.6 Modification of Loan Documents etc.
	 	 	88	 
	SECTION 11.7 Reinstatement
	 	 	89	 
	SECTION 11.8 No Subrogation
	 	 	89	 
	SECTION 11.9 Agreements for Reimbursement
	 	 	90	 
	ARTICLE XII DEFAULT AND REMEDIES
	 	 	90	 
	SECTION 12.1 Events of Default
	 	 	90	 
	SECTION 12.2 Remedies
	 	 	93	 
	SECTION 12.3
Rights and Remedies Cumulative; Non-Waiver; etc.
	 	 	93	 
	SECTION 12.4 Crediting of Payments and Proceeds
	 	 	94	 
	SECTION 12.5 Administrative Agent May File Proofs of Claim
	 	 	94	 
	SECTION 12.6 Judgment Currency
	 	 	95	 
	ARTICLE XIII THE ADMINISTRATIVE AGENT
	 	 	96	 
	SECTION 13.1 Appointment and Authority
	 	 	96	 
	SECTION 13.2 Delegation of Duties
	 	 	96	 
	SECTION 13.3 Exculpatory Provisions
	 	 	96	 
	SECTION 13.4 Reliance by the Administrative Agent
	 	 	97	 
	SECTION 13.5 Notice of Default
	 	 	97	 
	SECTION 13.6 Non-Reliance on the Administrative Agent and Other Lenders
	 	 	98	 
	SECTION 13.7 Indemnification
	 	 	98	 

iii

 

	 	 	 	 	 
	SECTION 13.8 The Administrative Agent in Its Individual Capacity
	 	 	99	 
	SECTION 13.9 Resignation of the Administrative Agent; Successor Administrative Agent
	 	 	99	 
	SECTION 13.10 Guaranty Matters
	 	 	100	 
	SECTION 13.11 Other Agents, Arrangers and Managers
	 	 	100	 
	SECTION 13.12 Hedging Counterparties
	 	 	100	 
	SECTION 13.13 Mandatory Cost Information
	 	 	100	 
	ARTICLE XIV MISCELLANEOUS
	 	 	101	 
	SECTION 14.1 Notices
	 	 	101	 
	SECTION 14.2 Amendments, Waivers and Consents
	 	 	102	 
	SECTION 14.3 Expenses; Indemnity
	 	 	104	 
	SECTION 14.4 Set-off
	 	 	105	 
	SECTION 14.5 Governing Law
	 	 	105	 
	SECTION 14.6 Jurisdiction and Venue
	 	 	106	 
	SECTION 14.7 Waiver of Jury Trial
	 	 	106	 
	SECTION 14.8 Reversal of Payments
	 	 	107	 
	SECTION 14.9 Injunctive Relief; Punitive Damages
	 	 	107	 
	SECTION 14.10 Accounting Matters
	 	 	107	 
	SECTION 14.11 Successors and Assigns; Participations
	 	 	108	 
	SECTION 14.12 Confidentiality
	 	 	110	 
	SECTION 14.13 Acknowledgement
	 	 	111	 
	SECTION 14.14 Performance of Duties
	 	 	111	 
	SECTION 14.15 All Powers Coupled with Interest
	 	 	111	 
	SECTION 14.16 Survival of Indemnities
	 	 	111	 
	SECTION 14.17 Titles and Captions
	 	 	112	 
	SECTION 14.18 Severability of Provisions
	 	 	112	 
	SECTION 14.19 Counterparts
	 	 	112	 
	SECTION 14.20 Integration
	 	 	112	 
	SECTION 14.21 Term of Agreement
	 	 	112	 
	SECTION 14.22 Advice of Counsel, No Strict Construction
	 	 	112	 
	SECTION 14.23 Inconsistencies with Other Documents; Independent Effect of Covenants
	 	 	112	 
	SECTION 14.24 Continuity of Contract
	 	 	113	 
	SECTION 14.25 Language
	 	 	113	 

iv

 

EXHIBITS

	 	 	 	 	 
	Exhibit A-1

	 	-
	 	Form of Revolving Credit Note
	Exhibit A-2

	 	-
	 	Form of Swingline Note
	Exhibit A-3

	 	-
	 	Form of Canadian Dollar Note
	Exhibit B

	 	-
	 	Form of Notice of Borrowing
	Exhibit C

	 	-
	 	Form of Notice of Account Designation
	Exhibit D

	 	-
	 	Form of Notice of Prepayment
	Exhibit E

	 	-
	 	Form of Notice of Conversion/Continuation
	Exhibit F

	 	-
	 	Form of Officer’s Compliance Certificate
	Exhibit G

	 	-
	 	Form of Assignment and Assumption
	Exhibit H

	 	-
	 	Form of Subsidiary Guaranty Agreement

SCHEDULES

	 	 	 	 	 
	Schedule 1.1(a)

	 	-
	 	Mandatory Cost Calculation
	Schedule 1.1(b)

	 	-
	 	Existing Letters of Credit
	Schedule 1.1(c)

	 	-
	 	EBITDA Addbacks
	Schedule 6.1(a)

	 	-
	 	Jurisdictions of Organization and Qualification
	Schedule 6.1(b)

	 	-
	 	Subsidiaries and Capitalization
	Schedule 6.1(i)

	 	-
	 	ERISA Plans
	Schedule 6.1(l)

	 	-
	 	Material Contracts
	Schedule 6.1(m)

	 	-
	 	Labor and Collective Bargaining Agreements
	Schedule 6.1(t)

	 	-
	 	Indebtedness and Guaranty Obligations
	Schedule 6.1(u)

	 	-
	 	Litigation
	Schedule 10.2

	 	-
	 	Existing Liens
	Schedule 10.3

	 	-
	 	Existing Loans, Advances and Investments
	Schedule 10.8

	 	-
	 	Transactions with Affiliates

v

 

     CREDIT AGREEMENT, dated as of December 23, 2004, by and among PRA
INTERNATIONAL, a Delaware corporation (the “Company”), PRA SUB, INC., a
Delaware Corporation (“PRA Sub”), PRA INTERNATIONAL OPERATIONS, INC., a
Delaware corporation (“PRA International”, and collectively with the
Company and PRA Sub, the “Parents”), PHARMACEUTICAL RESEARCH ASSOCIATES,
INC., a Virginia corporation (the “U.S. Borrower”), PHARMACEUTICAL
RESEARCH ASSOCIATES INTERNATIONAL, INC., a company organized under the laws of
Canada (the “Canadian Borrower”), PHARMACEUTICAL RESEARCH ASSOCIATES
GmbH, a company organized under the laws of Germany (the “German
Borrower”), PHARM RESEARCH ASSOCIATES (UK) LIMITED, a company organized
under the laws of England and Wales (the “UK Borrower”) (each of the
Canadian Borrower, the German Borrower and the UK Borrower, a “Foreign
Borrower”, and collectively, the “Foreign Borrowers” and, together
with the U.S. Borrower, the “Borrowers”) the lenders who are or may
become a party to this Agreement (collectively, the “Lenders”), WACHOVIA
BANK, NATIONAL ASSOCIATION, a national banking association, as Administrative
Agent for the Lenders, CANADIAN IMPERIAL BANK OF COMMERCE, as Canadian Dollar
Lender and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Syndication Agent.

STATEMENT OF PURPOSE

     The Borrowers have requested, and the Lenders have agreed, to extend
certain credit facilities to the Borrowers on the terms and conditions of this
Agreement.

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by the parties hereto, such
parties hereby agree as follows:

ARTICLE I

DEFINITIONS

     SECTION 1.1 Definitions. The following terms when used in this
Agreement shall have the meanings assigned to them below:

     “Administrative Agent” means Wachovia in its capacity as
Administrative Agent hereunder, and any successor thereto appointed pursuant to
Section 13.9.

     “Administrative Agent’s Correspondent” means Wachovia Bank,
National Association, London Branch, or any other financial institution
designated by the Administrative Agent to act as its correspondent hereunder
with respect to the distribution and payment of Alternative Currency Loans.

     “Administrative Agent’s Office” means the office of the
Administrative Agent specified in or determined in accordance with the
provisions of Section 14.1(c).

 

     “Administrative Questionnaire” means an Administrative
Questionnaire in a form supplied by the Administrative Agent.

     “Affiliate” means, with respect to any Person, any other Person
(other than a Subsidiary of any Credit Party) which directly or indirectly
through one or more intermediaries, controls, or is controlled by, or is under
common control with, such first Person or any of its Subsidiaries. The term
“control” means (a) the power to vote twenty percent (20%) or more of the
securities or other equity interests of a Person having ordinary voting power,
or (b) the possession, directly or indirectly, of any other power to direct or
cause the direction of the management and policies of a Person, whether through
ownership of voting securities, by contract or otherwise.

     “Aggregate Commitment” means the aggregate amount of the Revolving
Credit Lenders’ Commitments hereunder, as such amount may be increased, reduced
or otherwise modified at any time or from time to time pursuant to the terms
hereof. On the Closing Date, the Aggregate Commitment shall be Seventy-Five
Million Dollars ($75,000,000).

     “Agreement” means this Credit Agreement, as amended, restated,
supplemented or otherwise modified from time to time.

     “Alternative Currency” means (a) the euro, (b) the Pound Sterling,
and (c) the Canadian Dollar, and, with the prior written consent of the
Administrative Agent and the Revolving Credit Lenders, any other lawful
currency (other than Dollars) which is freely transferable and convertible into
Dollars in the United States currency market and freely available to all of the
Revolving Credit Lenders in the London interbank deposit market.

     “Alternative Currency Amount” means with respect to each Loan made
or continued (or to be made or continued), or Letter of Credit issued or
extended (or to be issued or extended), in an Alternative Currency, the amount
of such Alternative Currency which is equivalent to the principal amount in
Dollars of such Loan or Letter of Credit at the most favorable spot exchange
rate determined by the Administrative Agent to be available to it at
approximately 11:00 a.m. two (2) Business Days before such Loan is made or
continued (or to be made or continued), or Letter of Credit issued or extended
(or to be issued or extended). When used with respect to any other sum
expressed in Dollars, “Alternative Currency Amount” shall mean the amount of
such Alternative Currency which is equivalent to the amount so expressed in
Dollars at the most favorable spot exchange rate determined by the
Administrative Agent to be available to it at the relevant time.

     “Alternative Currency Commitment” means the lesser of (a) the
greater of (i) one-third of the Aggregate Commitment and (ii) $25,000,000 and
(b) the Aggregate Commitment, as such amount may be reduced or modified at any
time or from time to time pursuant to the terms hereof.

     “Alternative Currency Loan” means any Revolving Credit Loan
denominated in an Alternative Currency or a Canadian Dollar Loan, as the
context requires, and all such Alternative Currency Loans and Canadian Dollar
Loans collectively as the context requires.

2

 

     “Applicable Law” means all applicable provisions of constitutions,
laws, statutes, ordinances, rules, treaties, regulations, permits, licenses,
approvals, interpretations and orders of courts or Governmental Authorities and
all orders and decrees of all courts and arbitrators.

     “Applicable Margin” means the corresponding percentages per annum
as set forth below provided, that with respect to each LIBOR Rate Loan
made in an Alternative Currency other than Canadian Dollars, the Applicable
Margin shall be increased by an amount equal to the applicable Mandatory Cost:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Applicable Base	 	 	 	 
	 	 	 	 	Rate and Canadian	 	Applicable	 	 
	Tier
	 	Total Leverage Ratio
	 	Base Rate Margin
	 	LIBOR Margin
	 	Commitment Fee

	I

	 	Greater than or equal to 1.50 to 1.00
	 	 	0.50	%	 	 	1.75	%	 	0.375 %
	II

	 	Greater than or equal to 1.00 to
1.00, but less than 1.50 to 1.00
	 	 	0.25	%	 	 	1.50 	%	 	0.375 %
	III

	 	Less than 1.00 to 1.00
	 	 	0.00	%	 	 	1.25 	%	 	0.250 %

The Applicable Margin shall be determined and adjusted quarterly on the date
(each a “Calculation Date”) five (5) Business Days after the date by
which the Company and the U.S. Borrower, on behalf of the Borrowers, is
required to provide an Officer’s Compliance Certificate pursuant to Section
7.2 for the most recently ended fiscal quarter of the Company;
provided, however, that (a) the Applicable Margin shall be based
on Pricing Level III until the first Calculation Date occurring after the
Closing Date and, thereafter the Pricing Level shall be determined by reference
to the Total Leverage Ratio as of the last day of the most recently ended
fiscal quarter of the Company preceding the applicable Calculation Date, and
(b) if the Company and the U.S. Borrower fail to provide the Officer’s
Compliance Certificate as required by Section 7.2 for the most recently
ended fiscal quarter of the Company preceding the applicable Calculation Date,
the Applicable Margin from such Calculation Date shall be based on Pricing
Level I until such time as an appropriate Officer’s Compliance Certificate is
provided, at which time the Pricing Level shall be determined by reference to
the Total Leverage Ratio as of the last day of the most recently ended fiscal
quarter of the Company preceding such Calculation Date. Except as set forth
above, the Applicable Margin shall be effective from one Calculation Date until
the next Calculation Date. Any adjustment in the Applicable Margin shall be
applicable to all Extensions of Credit then existing or subsequently made or
issued.

     “Approved Fund” means any Person (other than a natural Person),
including, without limitation, any special purpose entity, that is (or will be)
engaged in making, purchasing, holding or otherwise investing in commercial
loans and similar extensions of credit in the ordinary course of its business;
provided, that such Approved Fund must be administered by (a) a Lender,
(b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.

     “Arbitration Rules” has the meaning assigned thereto in Section
14.7(a).

     “Assignment and Assumption” means an assignment and assumption
entered into by a Lender and an Eligible Assignee (with the consent of any
party whose consent is required by

3

 

Section 14.11), and accepted by the
Administrative Agent, in substantially the form of Exhibit G or any other form
approved by the Administrative Agent.

     “Attributable Indebtedness” means, on any date, (a) in respect of
any Capital Lease of any Person, the capitalized amount thereof that would
appear on a balance sheet of such Person prepared as of such date in accordance
with GAAP, and (b) in respect of any Synthetic Lease, the capitalized amount or
principal amount of the remaining lease payments under the relevant lease that
would appear on a balance sheet of such Person prepared as of such date in
accordance with GAAP if such lease were accounted for as a Capital Lease.

     “Available Cash” means, as of any date of determination, the
aggregate amount of all cash and cash equivalents of the Credit Parties as
determined in accordance with GAAP for presentation on the Company’s financial
statements as of such date of determination.

     “Base Rate” means, at any time, the higher of (a) the Prime Rate
and (b) the Federal Funds Rate plus 1/2 of 1%; each change in the Base
Rate shall take effect simultaneously with the corresponding change or changes
in the Prime Rate or the Federal Funds Rate.

     “Base Rate Loan” means any Loan bearing interest at a rate based
upon the Base Rate as provided in Section 4.1(a).

     “Benefited Lender” has the meaning assigned thereto in Section
4.6.

     “Borrowers” has the meaning assigned thereto in the preamble.

     “Business Day” means any day other than a Saturday, Sunday or other
day on which commercial banks are authorized to close under the Applicable Laws
of, or are in fact closed in, the state where the Administrative Agent’s Office
with respect to Obligations denominated in Dollars is located and:

               (a) if such day relates to any interest rate settings as to a LIBOR
Rate Loan denominated in Dollars, any funding, disbursements, settlements
and payments in Dollars in respect of any LIBOR Rate Loan, or any other
dealings in Dollars to be carried out pursuant to this Agreement in
respect of any such LIBOR Rate Loan, means any such day on which dealings
in deposits in Dollars are conducted by and between banks in the London
interbank eurodollar market;

               (b) if such day relates to any interest rate settings as to a LIBOR
Rate Loan denominated in euro, any fundings, disbursements, settlements
and payments in euro in respect of any such LIBOR Rate Loan, or any other
dealings in euro to be carried out pursuant to this Agreement in respect
of any such LIBOR Rate Loan, means a TARGET Day;

               (c) if such day relates to any interest rate settings as to a LIBOR
Rate Loan denominated in a currency other than Dollars or euro, means any
such day on which

4

 

dealings in deposits in the relevant currency are
conducted by and between banks in the London or other applicable offshore
interbank market for such currency;

               (d) if such day relates to any interest rate settings or payments of
principal and interest on Canadian Dollar Loans, means any day on which
banks are open for business in Toronto, Ontario; and

               (e) if such day relates to any fundings, disbursements, settlements
and payments in a currency other than Dollars or euro in respect of a
LIBOR Rate Loan denominated in a currency other than Dollars or euro, or
any other dealings in any currency other than Dollars or euro to be
carried out pursuant to this Agreement in respect of any such LIBOR Rate

Loan (other than any interest rate settings), means any such day on which
banks are open for foreign exchange business in the principal financial
center of the country of such currency.

     “Calculation Date” has the meaning assigned thereto in the
definition of Applicable Margin.

     “Canadian Base Rate” means at any time, the greater of (a) the rate
of interest publicly announced from time to time by the Canadian Reference Bank
as its prime rate in effect for determining interest rates on Canadian Dollar
denominated commercial loans in Canada (which such rate is not necessarily the
most favored rate of the Canadian Reference Bank and the Canadian Reference
Bank may lend to its customers at rates that are at, above or below such rate)
or, if the Canadian Reference Bank ceases to announce a rate so designated, any
similar successor rate designated by the Canadian Reference Bank and (b) the
annual rate of interest equal to the sum of (i) the CDOR Rate at such time
plus (ii) one percent (1%) per annum.

     “Canadian Base Rate Loan” means any Canadian Dollar Loan which
bears interest at a rate determined by reference to the Canadian Base Rate.

     “Canadian Borrower” has the meaning assigned thereto in the
preamble.

     “Canadian Dollar” or “C$” means, at any time of determination, the
then official currency of Canada.

     “Canadian Dollar Commitment” means the lesser of (a) Ten Million
Dollars ($10,000,000) and (b) the Alternative Currency Commitment.

     “Canadian Dollar Lender” means Canadian Imperial Bank of Commerce,
in its capacity as Canadian Dollar Lender hereunder and any successor in such
capacity.

     “Canadian Dollar Loan” means any revolving credit loan made by the
Canadian Dollar Lender pursuant to Section 2.2.

     “Canadian Dollar Note” means the Canadian Dollar Note made by the
Canadian Borrower payable to the order of the Canadian Dollar Lender,
substantially in the form of

5

 

Exhibit A-3 hereto, evidencing the Canadian Dollar
Loans, and any amendments, supplements and modifications thereto, any
substitutes therefor and any replacements, restatements, renewals or extensions
thereof, in whole or in part.

     “Canadian Facility” means the Canadian dollar facility established
pursuant to Section 2.2.

     “Canadian Reference Bank” means Canadian Imperial Bank of Commerce,
or its successor and assigns, or such other bank as the Canadian Dollar Lender
may from time to time designate.

     “Capital Asset” means, with respect to the Company and its
Subsidiaries, any asset that should, in accordance with GAAP, be classified and
accounted for as a capital asset on a Consolidated balance sheet of the Company
and its Subsidiaries.

     “Capital Expenditures” means with respect to the Company and its
Subsidiaries for any period, the aggregate cost of all Capital Assets acquired
by the Company and its Subsidiaries during such period, as determined in
accordance with GAAP; provided that for purposes of this definition, the
following shall be excluded from Capital Expenditures: (a) the purchase price
of assets that are purchased simultaneously with the trade-in of existing
assets of a similar type and nature or with the application of Net Cash
Proceeds from the sale or disposition of assets (to the extent permitted
hereunder) or from any payment under an insurance policy or in connection with
a condemnation proceeding shall be included in Capital Expenditures only to the
extent of the gross amount of such purchase price less the credit granted by
the seller of such assets for the assets being traded in at such time or the
amount of such Net Cash Proceeds, as the case may be, and (b) Permitted
Acquisitions.

     “Capital Lease” means any lease of any property by the Company or
any of its Subsidiaries, as lessee, that should, in accordance with GAAP, be
classified and accounted for as a capital lease on a Consolidated balance sheet
of the Company and its Subsidiaries.

     “Capital Stock” means (a) in the case of a corporation, capital
stock, (b) in the case of an association or business entity, any and all
shares, interests, participations, rights or other equivalents (however
designated) of capital stock, (c) in the case of a partnership, partnership
interests (whether general or limited), (d) in the case of a limited liability
company, membership interests and shares and (e) any other interest or
participation (but not including an employment agreement) that confers on a
Person the right to receive a share of the profits and losses of, or
distributions of assets of, the issuing Person.

     “CDOR Rate” means the rate of interest per annum determined on the
basis of an average thirty (30) day rate applicable to Canadian Dollar bankers’
acceptances appearing on
the “Reuters Screen CDOR Page” (as defined in the International Swap Dealer
Association, Inc.’s definitions, as amended, restated, supplemented or
otherwise modified from time to time) as of 10:00 a.m. (Toronto, Ontario time)
one Canadian Business Day prior to the first day of the applicable Interest
Period (rounded upward, if necessary, to the nearest 1/100th of 1%). If, for
any reason, such rate does not appear on the Reuters Screen CDOR Page, then the
“CDOR Rate”

6

 

shall be determined by the Canadian Dollar Lender to be the
arithmetic average of the rate per annum at which deposits in Canadian Dollars
would be offered by first class banks in Canada to the Canadian Dollar Lender.
Each calculation by the Canadian Dollar Lender of the CDOR Rate shall be
conclusive and binding for all purposes, absent manifest error.

     “Change in Control” means (a) any event or series of events in
which any person or group of persons (within the meaning of Section 13(d) of
the Securities Exchange Act of 1934, as amended) other than Genstar Capital
shall at any time own or obtain ownership or control in one or more series of
transactions of more than thirty percent (30%) of the Capital Stock or thirty
percent (30%) of the voting power of the Company entitled to vote in the
election of members of the board of directors of the Company, or (b) during any
period of twelve (12) consecutive months, a majority of the members of the
board of directors of the Company cease to be composed of individuals (i) who
were members of the board of directors on the first day of such period, (ii)
whose election or nomination to the board of directors was approved by
individuals who comprised a majority of the board of directors on the first day
of such period or (iii) whose election or nomination to the board of directors
was approved by (A) individuals who were members of the board of directors on
the first day of such period or (B) individuals whose election or nomination to
the board of directors was approved by a majority of the board of directors on
the first day of such period; provided that in each case such individuals
constituted a majority of the board of directors at the time of such election
or nomination.

     “Change in Law” means the occurrence, after the date of this
Agreement, of any of the following: (a) the adoption or taking effect of any
law, rule, regulation or treaty, (b) any change in any law, rule, regulation or
treaty or in the administration, interpretation or application thereof by any
Governmental Authority or (c) the making or issuance of any request, guideline
or directive (whether or not having the force of law) by any Governmental
Authority.

     “Closing Date” means the date of this Agreement or such later
Business Day upon which each condition described in Section 5.2 shall be
satisfied or waived in all respects in a manner acceptable to the
Administrative Agent, in its sole discretion.

     “Code” means the Internal Revenue Code of 1986, and the rules and

regulations thereunder, each as amended or modified from time to time.

     “Commitment” means, as to any Lender, the obligation of such Lender
to make Loans (including, without limitation, to participate in Canadian Dollar
Loans and Swingline Loans) and issue or participate in Letters of Credit issued
for the account of any Borrower hereunder, in an aggregate principal or face
amount at any time outstanding not to exceed the amount set forth opposite such
Lender’s name on the Register, as the same may be increased, reduced or
modified at any time or from time to time pursuant to the terms hereof.

     “Commitment Percentage” means, as to any Revolving Credit Lender at
any time, the ratio of (a) the amount of the Commitment of such Revolving
Credit Lender to (b) the Aggregate Commitment.

     “Company” has the meaning assigned thereto in the preamble.

7

 

     “Consolidated” means, when used with reference to financial
statements or financial statement items of the Company and its Subsidiaries,
such statements or items on a consolidated basis in accordance with applicable
principles of consolidation under GAAP.

     “Credit Facility” means, collectively, the Revolving Credit
Facility, the Canadian Facility, the Swingline Facility and the L/C Facility.

     “Credit Parties” means, collectively, the Parents, the Borrowers
and the Subsidiary Guarantors.

     “Default” means any of the events specified in Section 12.1
which with the passage of time, the giving of notice or any other condition,
would constitute an Event of Default.

     “Defaulting Lender” means any Lender that (a) has failed to fund
any portion of the Revolving Credit Loans, participations in Canadian Dollar
Loans, participations in Swingline Loans or participations in L/C Obligations
required to be funded by it hereunder within one (1) Business Day of the date
required to be funded by it hereunder, (b) has otherwise failed to pay over to
the Administrative Agent or any other Lender any other amount required to be
paid by it hereunder within one (1) Business Day of the date when due, unless
such amount is the subject of a good faith dispute, or (c) has been deemed
insolvent or become the subject of a bankruptcy or insolvency proceeding.

     “Disputes” means any dispute, claim or controversy arising out of,
connected with or relating to this Agreement or any other Loan Document.

     “Dollar Amount” means (a) with respect to each Loan made or
continued (or to be made or continued), or Letter of Credit issued or extended
(or to be issued or extended), in Dollars, the principal amount thereof and (b)
with respect to each Loan made or continued (or to be made or continued), or
Letter of Credit issued or extended (or to be issued or extended), in an
Alternative Currency, the amount of Dollars which is equivalent to the
principal amount of such Loan, or the face amount of such Letter of Credit, at
the most favorable spot exchange rate determined by the Administrative Agent at
approximately 11:00 a.m. (the time of the location of the office of the
Administrative Agent’s Correspondent) two (2) Business Days before such Loan is
made or continued (or to be made or continued) or such Letter of Credit issued
or extended (or to be issued or extended). When used with respect to any other
sum expressed in an Alternative Currency, “Dollar Amount” shall mean the amount
of Dollars which is equivalent to the amount so expressed in such Alternative
Currency at the most favorable spot exchange rate determined by the
Administrative Agent to be available to it at the relevant time.

     “Dollars” or “$” means, unless otherwise qualified, the lawful
currency of the United States.

     “Domestic Subsidiary” means any Subsidiary of the Company organized
under the laws of any political subdivision of the United States, whether now
in existence or hereafter acquired or organized.

8

 

     “EBITDA” means, for any period, the sum of the following determined
on a Consolidated basis, without duplication, for the Company and its
Subsidiaries in accordance with GAAP: (a) Net Income for such period
plus (b) the sum of the following to the extent deducted in determining
Net Income: (i) income, franchise and capital taxes, (ii) Interest Expense,
(iii) amortization, depreciation and other non-cash charges, (iv) the amounts
set forth on Schedule 1.1(c), in each case for the corresponding period
set forth on such Schedule, in respect of bonus payments to holders of vested
and unvested employee stock options, (v) one-time non-recurring charges
relating to the termination of Cambridge, England lease, in an amount not to
exceed $840,000, which such charges were incurred in the second fiscal quarter
of 2004 and (vi) one-time charges relating to the termination of the McLean,
Virginia lease, in an amount not to exceed $1,400,000, to the extent such
charges are incurred no later than the first fiscal quarter of 2006 less
(c) interest income and any extraordinary gains; provided, that EBITDA for such
period of any entity acquired in accordance with the terms of this Agreement
shall be included as of the first day of such period in the EBITDA of the
Company and its Subsidiaries on a pro forma, historical basis
(after giving effect to any adjustments thereto, which such adjustments have
been (x) identified in writing by the Company at the time of such acquisition
and (y) approved by the Administrative Agent).

     “Eligible Assignee” means (a) a Lender, (b) an Affiliate of a
Lender, (c) an Approved Fund, and (d) any other Person (other than a natural
person) approved by (i) the Administrative Agent, (ii) the Canadian Dollar
Lender, the Swingline Lender and the Issuing Lenders, and (iii) unless a
Default or Event of Default has occurred and is continuing, the U.S. Borrower
(each such approval not to be unreasonably withheld or delayed);
provided that notwithstanding the foregoing, “Eligible Assignee” shall
not include the Borrowers or any of their Affiliates or Subsidiaries.

     “Employee Benefit Plan” means any employee benefit plan within the
meaning of Section 3(3) of ERISA which (a) is maintained for employees of the
Credit Parties or any ERISA Affiliate or (b) for which any of the Credit
Parties or any current or former ERISA Affiliate has any continuing liability.

     “EMU” means economic and monetary union as contemplated in the
Treaty on European Union.

     “EMU Legislation” means legislative measures of the Council of
European Union for the introduction of, change over to or operation of the
euro.

     “Environmental Claims” means any and all administrative, regulatory
or judicial actions, suits, demand letters, claims, liens, notices of
noncompliance or violation, investigations
(other than internal reports prepared by any Person in the ordinary course of
business and not in response to any third party action or request of any kind)
or proceedings relating in any way to any actual or alleged violation of or
liability under any Environmental Law or relating to any permit issued, or any
approval given, under any such Environmental Law, including, without
limitation, any and all claims by Governmental Authorities for enforcement,
cleanup, removal, response, remedial or other actions or damages, contribution,
indemnification cost recovery,

9

 

compensation or injunctive relief resulting from
Hazardous Materials or arising from injury or threat of injury to the
environment.

     “Environmental Laws” means any and all federal, foreign, state,
provincial and local laws, statutes, ordinances, codes, rules, standards and
regulations, permits, licenses, approvals, interpretations and orders of courts
or Governmental Authorities, relating to the protection of human health or the
environment, including, but not limited to, requirements pertaining to the
manufacture, processing, distribution, use, treatment, storage, disposal,
transportation, handling, reporting, licensing, permitting, investigation or
remediation of Hazardous Materials.

     “ERISA” means the Employee Retirement Income Security Act of 1974,
and the rules and regulations thereunder, each as amended or modified from time
to time.

     “ERISA Affiliate” means any Person who together with any Credit
Party is treated as a single employer within the meaning of Section 414(b),
(c), (m) or (o) of the Code or Section 4001(b) of ERISA.

     “euro” means the single currency to which the Participating Member
States of the European Union have converted.

     “Eurodollar Reserve Percentage” means, for any day with respect to
any LIBOR Rate Loan denominated in Dollars, the percentage (expressed as a
decimal and rounded upwards, if necessary, to the next higher 1/100th of 1%)
which is in effect for such day as prescribed by the Board of Governors of the
Federal Reserve system (or any successor) for determining the maximum reserve
requirement (including, without limitation, any basic, supplemental or
emergency reserves) in respect of eurocurrency liabilities or any similar
category of liabilities for a member bank of the Federal Reserve System in New
York City.

     “Event of Default” means any of the events specified in Section
12.1; provided that any requirement for passage of time, giving of
notice, or any other condition, has been satisfied.

     “Excluded Taxes” means, with respect to the Administrative Agent,
any Lender (including the Canadian Dollar Lender, the Issuing Lenders and the
Swingline Lender) or any other recipient of any payment to be made by or on
account of any obligation of any Borrower hereunder, (a) taxes imposed on or
measured by its overall net income (however denominated), and franchise taxes
or capital taxes imposed on it (in lieu of net income taxes), by the
jurisdiction (or any political subdivision thereof) under the laws of which
such recipient is organized or in which its principal office is located or, in
the case of any Lender, in which its applicable lending
office is located, (b) any branch profits taxes imposed by the United States or
any similar tax imposed by any other jurisdiction in which such Borrower is
located and (c) in the case of a Foreign Lender (other than an assignee
pursuant to a request by the Borrowers under Section 4.14(b)), any
withholding tax that is imposed on amounts payable to such Foreign Lender (or
its assignee) at the time such Foreign Lender (and its assignee) becomes a
party hereto (or designates a new lending office) or is attributable to such
Foreign Lender’s failure or inability (other than as a result of a Change in
Law) to deliver such evidence of exemption from applicable withholding taxes
and otherwise comply with Section 4.13(e), except to the extent

10

 

that
such Foreign Lender (or its assignor, if any) was entitled, at the time of
designation of a new lending office (or assignment), to receive additional
amounts from the applicable Borrower with respect to such withholding tax
pursuant to Section 4.13(a). Notwithstanding anything to the contrary
contained in this definition, “Excluded Taxes” shall not include any
withholding tax imposed at any time on payments made by or on behalf of the
Canadian Borrower or any other Foreign Subsidiary of the Company to any Lender
hereunder or under any other Loan Document, provided that such Lender
shall have complied with the last paragraph of Section 4.13(e).

     “Existing Facilities” means:

               (a) the credit facility established pursuant to that certain Amended
and Restated Credit Agreement dated as of December 23, 2003 by and among
the Company, the financial institutions from time to time party thereto,
and Wells Fargo Bank, National Association, as administrative agent (as
amended);

               (b) the credit facility established pursuant to that certain Credit
Facility Agreement dated as of May 17, 2004 by and between Pharmaceutical
Research Associates International, Inc., as borrower, and Canadian
Imperial Bank of Commerce, as lender (as amended); and

               (c) the credit facility established pursuant to that certain
Multicurrency Revolving Cash Advance, Letter of Credit and Sterling
Overdraft Facilities Agreement dated as of May 17, 2004 by and among
Pharmaceutical Research Associates, GmbH and Pharm Research Associates
(UK) Limited, as co-borrowers and Wachovia Bank, National Association, as
lender (as amended).

     “Existing Letters of Credit” means all letters of credit described
on Schedule 1.1(b).

     “Extensions of Credit” means (a) as to any Revolving Credit Lender
at any time, (i) an amount equal to the sum of (A) the aggregate principal
amount of all Revolving Credit Loans made by such Lender then outstanding, (B)
such Lender’s Commitment Percentage of the L/C Obligations then outstanding,
(C) such Lender’s Commitment Percentage of the Swingline Loans then outstanding
and (D) such Lender’s Commitment Percentage of the Canadian Dollar Loans then
outstanding, or (ii) the making of any Loan or participation in any Letter of
Credit by such Lender, as the context requires and (b) as to the Canadian
Dollar Lender, (i) an amount
equal to the sum of all Canadian Dollar Loans made by the Canadian Dollar
Lender or (ii) the making of any Canadian Dollar Loan by the Canadian Dollar
Lender.

     “FDIC” means the Federal Deposit Insurance Corporation, or any
successor thereto.

     “Federal Funds Rate” means, the rate per annum (rounded upwards, if
necessary, to the next higher 1/100th of 1%) representing the daily effective
federal funds rate as quoted by the Administrative Agent and confirmed in
Federal Reserve Board Statistical Release H.15 (519) or any successor or
substitute publication selected by the Administrative Agent. If, for any
reason, such rate is not available, then “Federal Funds Rate” shall mean a
daily rate which is determined, in the opinion of the Administrative Agent, to
be the rate at which federal funds are being offered

11

 

for sale in the national
federal funds market at 9:00 a.m. Rates for weekends or holidays shall be the
same as the rate for the most immediately preceding Business Day.

     “Fee Letter” means the separate fee letter agreement executed by
the Company and the Administrative Agent and/or certain of its affiliates dated
November 9, 2004.

     “Fiscal Year” means the fiscal year of the Company and its
Subsidiaries ending on December 31.

     “Fixed Charges” means, for any period, the sum of the following
determined on a Consolidated basis, without duplication, for the Company and
its Subsidiaries in accordance with GAAP: (a) the cash component of Interest
Expense, (b) scheduled principal payments with respect to any Indebtedness, (c)
Capital Expenditures, (d) cash taxes, and (e) cash dividends and distributions
to third parties.

     “Foreign Borrower” has the meaning set forth in the preamble.

     “Foreign Lender” means, with respect to any Borrower, any Lender
that is either (a) organized or incorporated under the laws of a jurisdiction
or (b) resident for tax purposes in a jurisdiction, other than that in which
such Borrower is resident for tax purposes. For purposes of this definition,
the United States, each State thereof and the District of Columbia shall be
deemed to constitute a single jurisdiction.

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

     “GAAP” means generally accepted accounting principles, as
recognized by the American Institute of Certified Public Accountants and the
Financial Accounting Standards Board, consistently applied and maintained on a
consistent basis for the Company and its Subsidiaries throughout the period
indicated and (subject to Section 14.10) consistent with the prior
financial practice of the Company and its Subsidiaries.

     “Genstar Capital” means Genstar Capital Partners III, L.P., a
Delaware limited partnership and Stargen III, L.P. a Delaware limited
partnership and other affiliated investing funds of the foregoing.

     “Governmental Approvals” means all authorizations, consents,
approvals, permits, licenses and exemptions of, registrations and filings with,
and reports to, all Governmental Authorities.

     “Governmental Authority” means the government of the United States
or any other nation, or of any political subdivision thereof, whether state,
provincial or local, and any agency, authority, instrumentality, regulatory
body, court, central bank or other public entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions
of or pertaining to government (including any supra-national bodies such as the
government of Canada, the European Union or the European Central Bank).

     “Guaranteed Obligations” shall have the meaning set forth in
Section 11.1.

12

 

     “Guaranty Obligation” means, with respect to the Company and its
Subsidiaries, without duplication, any obligation, contingent or otherwise, of
any such Person pursuant to which such Person has directly or indirectly
guaranteed any Indebtedness of any other Person and, without limiting the
generality of the foregoing, any obligation, direct or indirect, contingent or
otherwise, of any such Person (a) to purchase or pay (or advance or supply
funds for the purchase or payment of) such Indebtedness (whether arising by
virtue of partnership arrangements, by agreement to keep well, to purchase
assets, goods, securities or services, to take-or-pay, or to maintain financial
statement condition or otherwise) or (b) entered into for the purpose of
assuring in any other manner the obligee of such Indebtedness of the payment
thereof or to protect such obligee against loss in respect thereof (in whole or
in part); provided, that the term Guaranty Obligation shall not include
endorsements for collection or deposit in the ordinary course of business.

     “Hazardous Materials” means any substances or materials (a) which
are or become defined as hazardous wastes, hazardous substances, pollutants,
contaminants or toxic substances under any Environmental Law, (b) which are
toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic,
mutagenic or otherwise harmful to human health or the environment and are or
become regulated as such by any Governmental Authority, (c) the presence of
which require investigation or remediation or give rise to liability under any
Environmental Law or common law, (d) the discharge or emission or release of
which requires a permit or license under any Environmental Law or (e) which
consist of underground or aboveground storage tanks, whether empty, filled or
partially filled with any substance, or which contain asbestos, polychlorinated
biphenyls, urea formaldehyde foam insulation, petroleum hydrocarbons, petroleum
derived substances or waste, crude oil, nuclear fuel, natural gas or synthetic
gas.

     “Hedging Agreement” means any agreement with respect to any
Interest Rate Contract, forward rate agreement, commodity swap, forward foreign
exchange agreement, currency swap agreement, cross-currency rate swap
agreement, currency option agreement or
other agreement or arrangement designed to alter the risks of any Person
arising from fluctuations in interest rates, currency values or commodity
prices, all as amended, restated, supplemented or otherwise modified from time
to time.

     “Hedging Obligations” means all existing or future payment and
other obligations owing by any Borrower under any Hedging Agreement (which such
Hedging Agreement is permitted hereunder) with any Person that is a Lender or
an Affiliate of a Lender at the time such Hedging Agreement is executed.

     “Indebtedness” means, with respect to the Company and its
Subsidiaries at any date and without duplication, the sum of the following
calculated in accordance with GAAP:

     (a) all liabilities, obligations and indebtedness for borrowed money
including, but not limited to, obligations evidenced by bonds, debentures,
notes or other similar instruments of any such Person;

13

 

     (b) all obligations to pay the deferred purchase price of property or
services of any such Person (including, without limitation, all obligations
under non-competition, earn-out or similar agreements), except trade payables
arising in the ordinary course of business not more than one hundred and eighty
(180) days past due;

     (c) the Attributable Indebtedness of such Person with respect to such
Person’s obligations in respect of Capital Leases and Synthetic Leases
(regardless of whether accounted for as indebtedness under GAAP);

     (d) all Indebtedness of any other Person secured by a Lien on any asset
owned or being purchased by such Person (including indebtedness arising under
conditional sales or other title retention agreements), whether or not such
indebtedness shall have been assumed by such Person or is limited in recourse
(the amount of which shall be the lesser of such Indebtedness and the fair
market value of Liened assets;

     (e) all Guaranty Obligations of any such Person;

     (f) all obligations, contingent or otherwise, of any such Person relative
to the face amount of letters of credit, whether or not drawn, including,
without limitation, any Reimbursement Obligation, and banker’s acceptances
issued for the account of any such Person; and

     (g) all obligations of any such Person to redeem, repurchase, exchange,
defease or otherwise make payments in respect of Capital Stock of such Person.

     For all purposes hereof, the Indebtedness of any Person shall include the
Indebtedness of any partnership or joint venture (other than a joint venture
that is itself a corporation or limited liability company) in which such Person
is a general partner or a joint venturer, unless such Indebtedness is expressly
made non-recourse to such Person.

     “Indemnified Taxes” means Taxes and Other Taxes other than Excluded
Taxes.

     “Interest Expense” means, with respect to the Company and its
Subsidiaries for any period, the gross interest expense (including, without
limitation, interest expense attributable to Capital Leases and all Net Hedging
Obligations) of the Company and its Subsidiaries, all determined for such
period on a Consolidated basis, without duplication, in accordance with GAAP.

     “Interest Period” has the meaning assigned thereto in Section
4.1(b).

     “Interest Rate Contract” means any interest rate swap agreement,
interest rate cap agreement, interest rate floor agreement, interest rate
collar agreement, interest rate option or any other agreement regarding the
hedging of interest rate risk exposure executed in connection with hedging the
interest rate exposure of a Person and any confirming letter executed pursuant
to such agreement, all as amended, restated, supplemented or otherwise modified
from time to time.

     “IPO” has the meaning assigned thereto in Section 5.2(e).

14

 

     “ISP98” means the International Standby Practices (1998 Revision,
effective January 1, 1999), International Chamber of Commerce Publication No.
590.

     “Issuing Lender” means (a) Wachovia (or any successor thereto), in
its capacity as issuer of any Letter of Credit under this Agreement and as the
issuer of certain of the Existing Letters of Credit and (b) Wells Fargo Bank,
National Association (or any successor thereto), in its capacity as issuer of
any Letter of Credit under this Agreement and as the issuer of certain of the
Existing Letters of Credit.

     “L/C Commitment” means the lesser of (a) Ten Million Dollars
($10,000,000) and (b) the Aggregate Commitment.

     “L/C Facility” means the letter of credit facility established
pursuant to Article III.

     “L/C Obligations” means at any time, an amount equal to the sum of
(a) the aggregate undrawn and unexpired face amount of the then outstanding
Letters of Credit and (b) the aggregate amount of drawings under Letters of
Credit which have not then been reimbursed pursuant to Section 3.5.

     “L/C Participants” means the collective reference to all the
Lenders other than the Canadian Dollar Lender, the Swingline Lender and with
respect to each Letter of Credit, the applicable Issuing Lender thereof.

     “Lender” means each Person executing this Agreement as a Lender
(including, without limitation, the Canadian Dollar Lender, each Issuing Lender
and the Swingline Lender unless the context otherwise requires) set forth on
the signature pages hereto and each Person that hereafter becomes a party to
this Agreement as a Lender pursuant to Section 14.11.

     “Lending Office” means, with respect to any Lender, the office of
such Lender maintaining such Lender’s Commitment Percentage of the Extensions
of Credit, or in the case of the Canadian Dollar Lender, the office of the
Canadian Dollar Lender maintaining such Lender’s Canadian Dollar Loans.

     “Letter of Credit Application” means an application, in the form
specified by the applicable Issuing Lender from time to time, requesting such
Issuing Lender to issue a Letter of Credit.

     “Letters of Credit” means the collective reference to the standby
letters of credit issued pursuant to Section 3.1 and the Existing
Letters of Credit.

     “LIBOR” means the rate of interest per annum determined on the
basis of the rate for deposits in the relevant Permitted Currency in minimum
amounts of at least $5,000,000 (calculated at the Alternative Currency Amount
for Loans not denominated in Dollars) for a period equal to the applicable
Interest Period which appears on the Telerate Page 3750 (or any replacement
pages on that service) or the applicable Reuters Screen Page at approximately
11:00

15

 

a.m. (London time) two (2) Business Days prior to the first day of the
applicable Interest Period (rounded upward, if necessary, to the nearest
1/100th of 1%). If, for any reason, such rate does not appear on Telerate Page
3750 (or any replacement pages on that service) or the applicable Reuters
Screen Page, then “LIBOR” shall be determined by the Administrative Agent to be
the arithmetic average of the rate per annum at which deposits in the relevant
Permitted Currency in minimum amounts of at least $5,000,000 (calculated at the
Alternative Currency Amount for Loans not denominated in Dollars) would be
offered by first class banks in the London interbank market to the
Administrative Agent at approximately 11:00 a.m. (London time) two (2) Business
Days prior to the first day of the applicable Interest Period for a period
equal to such Interest Period. Each calculation by the Administrative Agent of
LIBOR shall be conclusive and binding for all purposes, absent manifest error.

     “LIBOR Rate” means:

     (i) with respect to any LIBOR Rate Loan denominated in Dollars, a rate per
annum (rounded upwards, if necessary, to the next higher 1/100th of 1%)
determined by the Administrative Agent pursuant to the following formula:

	 	 	 	 	 
	LIBOR Rate

	 	=
	 	LIBOR 
	

	 	 	 	
 
	

	 	 	 	1.00-Eurodollar Reserve Percentage

               and

     (ii) with respect to any LIBOR Rate Loan denominated in any Alternative
Currency, a rate per annum (rounded upwards, if necessary, to the next higher
1/100th of 1%) equal to LIBOR.

Each calculation by the Administrative Agent of the LIBOR Rate shall be
conclusive and binding for all purposes, absent manifest error.

     “LIBOR Rate Loan” means any Loan bearing interest at a rate based
upon the LIBOR Rate as provided in Section 4.1(a).

     “Lien” means, with respect to any asset, any mortgage, leasehold
mortgage, lien, pledge, charge, security interest, hypothecation or encumbrance
of any kind in respect of such asset. For the purposes of this Agreement, a
Person shall be deemed to own subject to a Lien any asset which it has acquired
or holds subject to the interest of a vendor or lessor under any conditional
sale agreement, Capital Lease or other title retention agreement relating to
such asset.

     “Loan Documents” means, collectively, this Agreement, each Note,
the Letter of Credit Applications, the Subsidiary Guaranty Agreement and each
other document, instrument, certificate and agreement executed and delivered by
any Credit Party or, if applicable, any Subsidiary thereof in connection with
this Agreement (excluding any Hedging Agreement), all as may be amended,
restated, supplemented or otherwise modified from time to time.

16

 

     “Loans” means the collective reference to Revolving Credit Loans,
Alternative Currency Loans (including Canadian Dollar Loans) and the Swingline
Loans and “Loan” means any of such Loans.

     “Mandatory Cost” means the percentage rate per annum calculated by
the Administrative Agent in accordance with Schedule 1.1(a) hereto.

     “Material Adverse Effect” means (a) a material adverse effect upon
the business, operations, properties, assets, or condition (financial or
otherwise) of the Company and its Subsidiaries, taken as a whole, or (b) the
impairment of the ability of any Credit Party to perform, or of Administrative
Agent or Lenders to enforce, the Obligations.

     “Material Contract” means any contract or agreement, written or
oral, of any Credit Party or any of their Subsidiaries the failure to comply
with which could reasonably be expected to have a Material Adverse Effect.

     “Maturity Date” means the earliest to occur of (a) December 23,
2008, (b) the date of termination by the Borrowers pursuant to Section
2.6, or (c) the date of termination by the Administrative Agent on behalf
of the Lenders pursuant to Section 12.2(a).

     “Multiemployer Plan” means a “multiemployer plan” as defined in
Section 4001(a)(3) of ERISA to which the Credit Parties or any ERISA Affiliate
is making, or is accruing an obligation to make, or has any continuing
liability.

     “Net Hedging Obligations” means, as of any date, the Termination
Value of any such Hedging Agreement on such date.

     “Net Income” means, with respect to the Company and its
Subsidiaries, for any period of determination, the net income (or loss) of the
Company and its Subsidiaries for such period, determined on a Consolidated
basis in accordance with GAAP; provided that there shall be excluded
from Net Income (a) the net income (or loss) of any Person (other than Pharma
eMarket, LLC and any Subsidiary which shall be subject to clause (c) below), in
which the Company or any of its Subsidiaries has a joint interest with a third
party, except to the extent such net income is actually paid to the Company or
any of its Subsidiaries by dividend or other distribution during such period,
(b) the net income (or loss) of any Person accrued prior to the date it becomes
a Subsidiary of such Person or is merged into or consolidated with such Person
or any of its Subsidiaries or that Person’s assets are acquired by such Person
or any of its Subsidiaries except to the extent included pursuant to the
foregoing clause (a), (c) the net income (if positive) of Pharma eMarket, LLC
and any Subsidiary to the extent that the declaration or payment of dividends
or similar distributions by such Person to the Company or any of its
Subsidiaries of such net income (i) is not at the time permitted by operation
of the terms of its charter or any agreement, instrument, judgment, decree,
order, statute rule or governmental regulation applicable to such Person or
(ii) would be subject to any taxes payable on such dividends or distributions.

17

 

     “Net Worth” means, as of any date of determination, for the Company
and its Subsidiaries, total stockholder’s equity calculated in accordance with
GAAP and without duplication.

     “Note” means any of the following as the context requires: a
Revolving Credit Note, a Canadian Dollar Note or a Swingline Note and “Notes”
is the collective reference to all such notes.

     “Notice of Account Designation” has the meaning assigned thereto in
Section 2.4(b).

     “Notice of Borrowing” has the meaning assigned thereto in
Section 2.4(a).

     “Notice of Conversion/Continuation” has the meaning assigned
thereto in Section 4.2.

     “Notice of Prepayment” has the meaning assigned thereto in
Section 2.5(c).

     “Obligations” means, in each case, whether now in existence or
hereafter arising: (a) the principal of and interest on (including interest
accruing after the filing of any bankruptcy or similar petition) the Loans, (b)
the L/C Obligations, (c) all Hedging Obligations and (d) all other fees and
commissions (including attorneys’ fees), charges, indebtedness, loans,
liabilities, financial accommodations, obligations, covenants and duties owing
by the Company or any of its Subsidiaries to the Lenders or the Administrative
Agent, in each case under any Loan Document, with respect to any Loan or Letter
of Credit made, issued or carried hereunder of every kind, nature and
description, direct or indirect, absolute or contingent, due or to become
due, contractual or tortious, liquidated or unliquidated, and whether or not
evidenced by any note.

     “Officer’s Compliance Certificate” means a certificate of the
Company and the U.S. Borrower signed by the chief financial officer or the
treasurer of each substantially in the form of Exhibit F.

     “Operating Lease” means, as to any Person as determined in
accordance with GAAP, any lease of property (whether real, personal or mixed)
by such Person as lessee which is not a Capital Lease.

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

     “Parent” has the meaning assigned thereto in the introductory
paragraph.

     “Parent Guarantor” has the meaning assigned thereto in Section
11.1.

     “Participant” has the meaning assigned thereto in Section
14.11(d).

     “Participating Member State” means each state so described in any
EMU Legislation.

18

 

     “PBGC” means the Pension Benefit Guaranty Corporation or any
successor agency.

     “Pension Plan” means any Employee Benefit Plan, other than a
Multiemployer Plan, which is subject to the provisions of Title IV of ERISA or
Section 412 of the Code and (a) which is maintained for the employees of the
Credit Parties or any ERISA Affiliates or (b) to which any of the Credit
Parties or any of its current or former ERISA Affiliates has any continuing
liability.

     “Permitted Acquisition” means any acquisition permitted pursuant to
Section 10.3(c).

     “Permitted Currency” means Dollars or any Alternative Currency, or
each such currency, as the context requires.

     “Permitted Liens” means the Liens permitted pursuant to Section
10.2.

     “Person” means any natural person, corporation, limited liability
company, trust, joint venture, association, company, partnership, governmental
authority or other entity.

     “Pounds Sterling” means, at any time of determination, the then
official currency of the United Kingdom of Great Britain and Northern Ireland.

     “Prime Rate” means, at any time, the rate of interest per annum
publicly announced from time to time by Wachovia as its prime rate. Each
change in the Prime Rate shall be effective as of the opening of business on
the day such change in such prime rate occurs. The parties hereto acknowledge
that the rate announced publicly by Wachovia as its prime rate is an index or
base rate and shall not necessarily be its lowest or best rate charged to its
customers or other banks.

     “Register” has the meaning assigned thereto in Section
14.11(c).

     “Reimbursement Obligation” means the obligation of the U.S.
Borrower to reimburse the applicable Issuing Lender pursuant to Section
3.5 for amounts drawn under Letters of Credit.

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

     “Required Fixed Charge Coverage Ratio” means as of the date of
making any dividend or distribution pursuant to Section 10.6(c), and for
each of the next four (4) fiscal quarters immediately following such date, 3.00
to 1.00, and at all other times, 2.00 to 1.00.

     “Required Lenders” means, at any date, any combination of Lenders,
excluding the Canadian Dollar Lender, whose Commitments aggregate more than
fifty percent (50%) of the Aggregate Commitment or, if the Credit Facility has
been terminated, any combination of Lenders, excluding the Canadian Dollar
Lender, holding more than fifty percent (50%) of the aggregate Extensions of
Credit (with the aggregate amount of each Lender’s risk participation and
funded participation in Canadian Dollar Loans, Swingline Loans and L/C
Obligations being deemed “held” by such Lender for the purposes of this
definition); provided that the Commitment of, and the portion of the
Extensions of Credit, as applicable, held or deemed held

19

 

by, any Defaulting
Lender shall be excluded for purposes of making a determination of Required
Lenders.

     “Responsible Officer” means the chief executive officer, president,
chief financial officer, treasurer, assistant treasurer or managing director of
a Credit Party or any other officer of a Credit Party named by the Company as
such and reasonably acceptable to the Administrative Agent. Any document
delivered hereunder that is signed by a Responsible Officer of a Credit Party
shall be conclusively presumed to have been authorized by all necessary
corporate, partnership and/or other action on the part of such Credit Party and
such Responsible Officer shall be conclusively presumed to have acted on behalf
of such Credit Party.

     “Revolving Credit Facility” means the revolving credit facility
established pursuant to Article II.

     “Revolving Credit Loans” means any revolving credit loan
denominated in any Permitted Currency made to the U.S. Borrower, the UK
Borrower or the German Borrower
pursuant to Section 2.1, and all such revolving credit loans
collectively as the context requires.

     “Revolving Credit Note” means a promissory note made by a Borrower
in favor of a Lender evidencing the Revolving Credit Loans made by such Lender
to such Borrower, substantially in the form of Exhibit A-1 hereto, and any
amendments, supplements and modifications thereto, any substitutes therefor,
and any replacements, restatements, renewals or extensions thereof, in whole or
in part.

     “Solvent” means, as to the Company and its Subsidiaries on a
particular date, that any such Person (a) has capital sufficient to carry on
its business and transactions and all business and transactions in which it is
about to engage and is able to pay its indebtedness as such indebtedness
matures, (b) has assets having a value, both at fair valuation and at present
fair saleable value, greater than the amount required to pay its probable
liabilities (including contingencies), and (c) does not believe that it will
incur indebtedness or liabilities beyond its ability to pay such indebtedness
or liabilities as they mature.

     “Subordinated Indebtedness” means the collective reference to any
Indebtedness of the Credit Parties or any Subsidiary thereof subordinated in
right and time of payment to the Obligations and containing such other terms
and conditions, in each case as are satisfactory to the Administrative Agent.

     “Subsidiary” means as to any Person, any corporation, partnership,
limited liability company or other entity of which more than fifty percent
(50%) of the outstanding Capital Stock having ordinary voting power to elect a
majority of the board of directors or other managers of such corporation,
partnership, limited liability company or other entity is at the time owned by
or the management is otherwise controlled, directly or indirectly, by such
Person (irrespective of whether, at the time, Capital Stock of any other class
or classes of such corporation, partnership, limited liability company or other
entity shall have or might have voting power by reason of the happening of any
contingency). Unless otherwise qualified references to “Subsidiary” or
“Subsidiaries” herein shall refer to those of the Company.

20

 

     “Subsidiary Guarantors” means each Domestic Subsidiary of the U.S.
Borrower in existence on the Closing Date or which becomes a party to the
Subsidiary Guaranty Agreement pursuant to Section 8.11.

     “Subsidiary Guaranty Agreement” means the unconditional guaranty
agreement of even date executed by the Subsidiary Guarantors in favor of the
Administrative Agent for the ratable benefit of itself and the Lenders,
substantially in the form of Exhibit H, as amended, restated, supplemented or
otherwise modified from time to time.

     “Swingline Commitment” means the lesser of (a) Five Million Dollars
($5,000,000) and (b) the Aggregate Commitment.

     “Swingline Facility” means the swingline facility established
pursuant to Section 2.3.

     “Swingline Lender” means Wachovia in its capacity as swingline
lender hereunder and any successor in such capacity.

     “Swingline Loan” means any swingline loan made by the Swingline
Lender to the U.S. Borrower pursuant to Section 2.3, and all such
swingline loans collectively as the context requires.

     “Swingline Note” means the Swingline Note made by the U.S. Borrower
payable to the order of the Swingline Lender, substantially in the form of
Exhibit A-2 hereto, evidencing the Swingline Loans, and any amendments,
supplements and modifications thereto, any substitutes therefor, and any
replacements, restatements, renewals or extensions thereof, in whole or in
part.

     “Swingline Termination Date” means the first to occur of (a) the
resignation of Wachovia as Administrative Agent in accordance with Section
13.9 (unless Wachovia is replaced as the Swingline Lender on or before the
effective date of such resignation) and (b) the Maturity Date.

     “Synthetic Lease” means any synthetic lease, tax retention
operating lease, off-balance sheet loan or similar off-balance sheet financing
product where such transaction is considered borrowed money indebtedness for
tax purposes but is classified as an Operating Lease in accordance with GAAP.

     “TARGET” shall mean Trans-European Automated Real-time Gross
Settlement Express Transfer payment system (or, if such system ceases to be
operative, such other payment system (if any) determined by the Agent to be a
suitable replacement).

     “TARGET Day” means any day on which the Trans-European Automated
Real-time Gross Settlement Express Transfer payment system (or, if such payment
system ceases to be operative, such other payment system (if any) determined by
the Administrative Agent to be a suitable replacement) is open for the
settlement of payments in euro.

21

 

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

     “Termination Event” means except for any such event or condition
that could not reasonably be expected to have a Material Adverse Effect: (a) a
“Reportable Event” described in Section 4043 of ERISA for which the notice
requirement has not been waived by regulation or the PBGC, or (b) the
withdrawal of any Credit Party or any ERISA Affiliate from a Pension Plan
during a plan year in which it was a “substantial employer” as defined in
Section 4001(a)(2) of ERISA, or (c) the termination of a Pension Plan, the
filing of a notice of intent to terminate a Pension Plan or the treatment of a
Pension Plan amendment as a termination, under Section 4041 of ERISA, if the
plan assets are not sufficient to pay all plan liabilities, or (d) the
institution of proceedings to terminate, or the appointment of a trustee with
respect to, any Pension Plan by the PBGC, or (e) any other event or condition
which would constitute grounds
under Section 4042(a) of ERISA for the termination of, or the appointment of a
trustee to administer, any Pension Plan, or (f) the imposition of a Lien
pursuant to Section 412 of the Code or Section 302 of ERISA, or (g) the partial
or complete withdrawal of any Credit Party or any ERISA Affiliate from a
Multiemployer Plan if withdrawal liability is asserted by such plan, or (h) any
event or condition which results in the reorganization or insolvency of a
Multiemployer Plan under Sections 4241 or 4245 of ERISA, or (i) any event or
condition which results in the termination of a Multiemployer Plan under
Section 4041A of ERISA or the institution by PBGC of proceedings to terminate a
Multiemployer Plan under Section 4042 of ERISA.

     “Termination Value” means, in respect of any one or more Hedging
Agreements, after taking into account the effect of any legally enforceable
netting agreement relating to such Hedging Agreements, (a) for any date on or
after the date such Hedging Agreements have been closed out and termination
value(s) determined in accordance therewith, such termination value(s), and (b)
for any date prior to the date referenced in clause (a), the amount(s)
determined as the mark-to-market value(s) for such Hedging Agreements, as
determined based upon one or more mid-market or other readily available
quotations provided by any recognized dealer in such Hedging Agreements (which
may include a Lender or any Affiliate of a Lender).

     “Total Indebtedness” means, as of any date of determination with
respect to the Company and its Subsidiaries, the sum of all Indebtedness of the
Company and its Subsidiaries on a Consolidated basis without duplication.

     “Total Leverage Ratio” shall have the meaning assigned thereto in
Section 9.1.

     “Treaty on European Union” means the Treaty of Rome of March 25,
1957, as amended by the Single European Act of 1986 and the Maastricht Treaty
(signed February 7, 1992), as amended from time to time.

     “UCC” means the Uniform Commercial Code as in effect in the State
of New York, as amended or modified from time to time.

     “Unconditional Guaranty” means the unconditional guaranty of the
payment of the Obligations of the Borrowers by the Parents and the U.S.
Borrower under Article XI hereof.

22

 

     “Uniform Customs” means the Uniform Customs and Practice for
Documentary Credits (1993 Revision), effective January, 1994 International
Chamber of Commerce Publication No. 500.

     “United States” means the United States of America.

     “U.S. Borrower” has the meaning assigned thereto in the
introductory paragraph hereto.

     “Wachovia” means Wachovia Bank, National Association, a national
banking association, and its successors.

     “Wholly-Owned” means, with respect to a Subsidiary, that all of the
shares of Capital Stock of such Subsidiary are, directly or indirectly, owned
or controlled by the Company and/or one or more of its Wholly-Owned
Subsidiaries (except for directors’ qualifying shares or other shares required
by Applicable Law to be owned by a Person other than the Company).

     SECTION 1.2 Other Definitions and Provisions. With reference to
this Agreement and each other Loan Document, unless otherwise specified herein
or in such other Loan Document: (a) the definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined, (b)
whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms, (c) the words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”,
(d) the word “will” shall be construed to have the same meaning and effect as
the word “shall”, (e) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring to such
agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (f) any reference
herein to any Person shall be construed to include such Person’s successors and
assigns, (g) the words “herein”, “hereof” and “hereunder”, and words of similar
import, shall be construed to refer to this Agreement in its entirety and not
to any particular provision hereof, (h) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement, (i) 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, securities, accounts and contract rights, (j) the term
“documents” includes any and all instruments, documents, agreements,
certificates, notices, reports, financial statements and other writings,
however evidenced, whether in physical or electronic form, and (k) in the
computation of periods of time from a specified date to a later specified date,
the word “from” means “from and including;” the words “to” and “until” each
mean “to but excluding;” and the word “through” means “to and including”.

     SECTION 1.3 Accounting Terms. All accounting terms not
specifically defined herein shall be construed in conformity with, and all
financial data (including financial ratios and other financial calculations)
required to be submitted pursuant to this Agreement shall be prepared in
conformity with, GAAP applied on a consistent basis, as in effect from time to
time,

23

 

applied in a manner consistent with that used in preparing the audited
financial statements required by Section 7.1(b), except as
otherwise specifically prescribed herein.

     SECTION 1.4 UCC Terms. Terms defined in the UCC and not otherwise
defined herein shall, unless the context otherwise indicates, have the meanings
provided by those definitions.

     SECTION 1.5 Rounding. Any financial ratios required to be maintained by the Credit Parties
pursuant to this Agreement shall be calculated by dividing the appropriate
component by the other component, carrying the result to one place more than
the number of places by which such ratio is expressed herein and rounding the
result up or down to the nearest number (with a rounding-up if there is no
nearest number).

     SECTION 1.6 References to Agreement and Laws. Unless otherwise
expressly provided herein, (a) references to formation documents, governing
documents, agreements (including the Loan Documents) and other contractual
instruments shall be deemed to include all subsequent amendments, restatements,
extensions, supplements and other modifications thereto, but only to the extent
that such amendments, restatements, extensions, supplements and other
modifications are not prohibited by any Loan Document.

     SECTION 1.7 Times of Day. Unless otherwise specified, all
references herein to times of day shall be references to Eastern time (daylight
or standard, as applicable).

     SECTION 1.8 Letter of Credit Amounts; Other Amounts. Unless
otherwise specified, all references herein to the amount of a Letter of Credit
at any time shall be deemed to mean the maximum face amount of such Letter of
Credit after giving effect to all increases thereof contemplated by such Letter
of Credit or the Letter of Credit Application therefor, whether or not such
maximum face amount is in effect at such time. With respect to the amount of
any basket set forth in this Agreement or in any other Loan Document, any
utilization of such basket shall be calculated based on the Dollar Amount
thereof.

     SECTION 1.9 Effectiveness of Euro Provisions. With respect to any
state (or the currency of such state) that is not a Participating Member State
on the date of this Agreement, the provisions of Sections 4.1(f),
4.8(b), 4.8(c) and 4.17 shall become effective in relation
to such state (and the currency of such state) at and from the date on which
such state becomes a Participating Member State.

ARTICLE II

REVOLVING CREDIT FACILITY

     SECTION 2.1 Revolving Credit Loans. Subject to the terms and
conditions of this Agreement, and in reliance upon the representations and
warranties set forth herein, each Revolving Credit Lender severally agrees to
make Revolving Credit Loans in a Permitted Currency to the U.S. Borrower, and
(subject to subsection 2.1(d) below), to the UK Borrower

24

 

and the German
Borrower, from time to time from the Closing Date through, but not including,
the Maturity Date as requested by the U.S. Borrower, on behalf of the
applicable Borrower, in accordance with the terms of Section 2.4;
provided, that, based upon the Dollar Amount of all outstanding Loans
and L/C Obligations:

	(a)	 	the aggregate principal amount of all outstanding Revolving
Credit Loans (after giving effect to any amount requested) shall not
exceed the Aggregate Commitment less the sum of all
outstanding Canadian Dollar Loans, Swingline Loans and L/C
Obligations;
	 
	(b)	 	the aggregate principal amount of all outstanding Revolving
Credit Loans denominated in any Alternative Currency (after giving
effect to any amount requested) shall not exceed the lesser of (A)
the Aggregate Commitment less the sum of all outstanding
Revolving Credit Loans denominated in Dollars, Canadian Dollar
Loans, Swingline Loans and L/C Obligations and (B) the Alternative
Currency Commitment;
	 
	(c)	 	the aggregate principal amount of all outstanding Revolving
Credit Loans from any Lender to the Borrowers shall not at any time
exceed such Lender’s Commitment less such Lender’s Commitment
Percentage of outstanding Canadian Dollar Loans, Swingline Loans and
outstanding L/C Obligations; and
	 
	(d)	 	any Revolving Credit Loan made to the U.S. Borrower, the UK
Borrower or the German Borrower may be denominated in any Permitted
Currency; provided, however, that the aggregate principal
amount of all outstanding Loans to the Foreign Borrowers shall not
exceed the Alternative Currency Commitment (whether in Dollars or an
Alternative Currency).

Each Revolving Credit Loan shall be funded by each Revolving Credit Lender in a
principal amount equal to such Lender’s Commitment Percentage of the aggregate
principal amount of Revolving Credit Loans requested on such occasion in the
requested Permitted Currency. Subject to the terms and conditions hereof, the
U.S. Borrower, the UK Borrower and the German Borrower may borrow, repay and
reborrow Revolving Credit Loans hereunder until the Maturity Date.

     SECTION 2.2 Canadian Dollar Loans.

     (a) Availability. Subject to the terms and conditions of this
Agreement, and in reliance upon the representations and warranties set forth
herein, the Canadian Dollar Lender agrees to make Canadian Dollar Loans to the
Canadian Borrower from time to time from the Closing Date through, but not
including, the Maturity Date as requested by the U.S. Borrower, on behalf of
the Canadian Borrower, in accordance with the terms of Section 2.4;
provided that, based upon the Dollar Amount of all outstanding Loans and
L/C Obligations, the aggregate principal amount of all outstanding Canadian
Dollar Loans (after giving effect to any amount requested) shall not exceed the
lesser of (i) the Aggregate Commitment less the sum of all outstanding
Revolving Credit Loans, Swingline Loans and L/C Obligations and (ii) the
Canadian Dollar Commitment. Subject to the

25

 

terms and conditions hereof, the
Canadian Borrower may borrow, repay and reborrow Canadian Dollar Loans
hereunder until the Maturity Date.

     (b) Refunding of Canadian Dollar Loans.

               (i) Upon the occurrence and during the continuance of an Event of Default,
each Canadian Dollar Loan may, at the discretion of the Canadian Dollar Lender,
be converted immediately to a Base Rate Loan funded in Dollars to the U.S.
Borrower by the Revolving Credit Lenders in an amount equal to the Dollar
Amount of such Canadian Dollar Loan; provided that the Canadian Borrower
shall pay to the Canadian Dollar Lender any and all reasonable out-of-pocket
costs, fees and other expenses incurred by the Canadian Dollar Lender in
effecting such conversion. Such Base Rate Loan shall thereafter be reflected
as a Revolving Credit Loan of the Revolving Credit Lenders to the U.S. Borrower
on the books and records of the Administrative Agent. Each Revolving Credit
Lender shall fund its respective Commitment Percentage of such Revolving Credit
Loan as required to repay Canadian Dollar Loans outstanding to the Canadian
Dollar Lender upon such demand by the Canadian Dollar Lender in no event later
than 1:00 p.m. on the next succeeding Business Day after such demand is made.
No Revolving Credit Lender’s obligation to fund its respective Commitment
Percentage of any Revolving Credit Loan required to repay such Canadian Dollar
Loan shall be affected by any other Revolving Credit Lender’s failure to fund
its Commitment Percentage of such Revolving Credit Loan, nor shall any
Revolving Credit Lender’s Commitment Percentage be increased as a result of any
such failure of any other Revolving Credit Lender to fund its Commitment
Percentage of such Revolving Credit Loan.

               (ii) The Canadian Borrower shall pay to the Canadian Dollar Lender on
demand the amount of such Canadian Dollar Loans to the extent that the
Revolving Credit Lenders fail to refund in full the outstanding Canadian Dollar
Loans requested or required to be refunded. In addition, each of the U.S.
Borrower and the Canadian Borrower hereby authorizes the Administrative Agent
to charge any account maintained thereby with the Canadian Dollar Lender or any
Affiliate thereof (up to the amount available therein) in order to immediately
pay the Canadian Dollar Lender the amount of such Canadian Dollar Loans to the
extent amounts received from the Revolving Credit Lenders are not sufficient to
repay in full the outstanding Canadian Dollar Loans requested or required to be
refunded. If any portion of any such amount paid to the Canadian Dollar Lender
shall be recovered by or on behalf of the Canadian Borrower from the Canadian
Dollar Lender in bankruptcy or otherwise, the loss of the amount so recovered
shall be ratably shared among all the Revolving Credit Lenders in accordance
with their respective Commitment Percentages.

               (iii) Each Revolving Credit Lender acknowledges and agrees that its
obligation to refund Canadian Dollar Loans in accordance with the terms of this
Section 2.2 is absolute and unconditional and shall not be affected by
any circumstance whatsoever, including, without limitation, non-satisfaction of
the conditions set forth in Article V. Further, each Revolving Credit
Lender acknowledges and agrees that if prior to the refunding in full of any
outstanding Canadian Dollar Loans pursuant to this Section 2.2, an Event
of Default shall have occurred, and the Canadian Dollar Lender shall have
requested the conversion of such Canadian Dollar Loan each Revolving Credit
Lender will, on the date the applicable Revolving Credit Loan would have been
made to refund such Canadian Dollar Loans, purchase an undivided participating
interest in such Canadian

26

 

Dollar Loans in an amount equal to its Commitment
Percentage of the aggregate amount of such outstanding Canadian Dollar Loans.
Each Revolving Credit Lender will immediately transfer to the Administrative
Agent, for the account of the
Canadian Dollar Lender, in immediately available funds in Canadian Dollars, the
amount of its participation. Whenever, at any time after the Canadian Dollar
Lender has received from any Revolving Credit Lender such Revolving Credit
Lender’s participating interest in the refunded Canadian Dollar Loans, the
Canadian Dollar Lender receives any payment on account thereof, the Canadian
Dollar Lender will distribute to such Revolving Credit Lender its participating
interest in such amount (appropriately adjusted, in the case of interest
payments, to reflect the period of time during which such Revolving Credit
Lender’s participating interest was outstanding and funded).

               (iv) In the event that any Revolving Credit Lender fails to make payment
to the Canadian Dollar Lender of any amount due under this Section 2.2,
the Administrative Agent, on behalf of the Canadian Dollar Lender, shall be
entitled to receive, retain and apply against such obligation the principal and
interest otherwise payable to such Revolving Credit Lender hereunder until the
Canadian Dollar Lender receives such payment from such Revolving Credit Lender
or such obligation is otherwise fully satisfied. In addition to the foregoing,
if for any reason any Revolving Credit Lender fails to make payment to the
Canadian Dollar Lender of any amount due under this Section 2.2, such
Revolving Credit Lender shall be deemed, at the option of the Administrative
Agent, to have unconditionally and irrevocably purchased from the Canadian
Dollar Lender, without recourse or warranty, an undivided interest and
participation in the applicable Canadian Dollar Loan, and such interest and
participation may be recovered from such Revolving Credit Lender together with
interest thereon at the Federal Funds Effective Rate for each day during the
period commencing on the date of demand and ending on the date such amount is
received.

     SECTION 2.3 Swingline Loans.

     (a) Availability. Subject to the terms and conditions of this
Agreement, the Swingline Lender agrees to make Swingline Loans to the U.S.
Borrower from time to time from the Closing Date through, but not including,
the Swingline Termination Date; provided, that (i) all Swingline Loans
shall be denominated in Dollars and (ii) based upon the Dollar Amount of all
outstanding Loans and L/C Obligations, the aggregate principal amount of all
outstanding Swingline Loans (after giving effect to any amount requested) shall
not exceed the lesser of (i) the Aggregate Commitment less the sum of
all outstanding Revolving Credit Loans, Canadian Dollar Loans and L/C
Obligations and (ii) the Swingline Commitment. Subject to the terms and
conditions hereof, the U.S. Borrower may borrow, repay and reborrow Swingline
Loans hereunder until the Maturity Date.

     (b) Refunding.

               (i) Swingline Loans shall be refunded by the Revolving Credit Lenders on
demand by the Swingline Lender. Such refundings shall be made by the Revolving
Credit Lenders in accordance with their respective Commitment Percentages and
shall thereafter be reflected as Revolving Credit Loans of the Revolving Credit
Lenders on the books and records of the Administrative Agent. Each Revolving
Credit Lender shall fund its respective Commitment

27

 

Percentage of Revolving
Credit Loans as required to repay Swingline Loans outstanding to the Swingline
Lender upon demand by the Swingline Lender but in no event later than 1:00 p.m.
on
the next succeeding Business Day after such demand is made. No Revolving
Credit Lender’s obligation to fund its respective Commitment Percentage of a
Swingline Loan shall be affected by any other Revolving Credit Lender’s failure
to fund its Commitment Percentage of a Swingline Loan, nor shall any Revolving
Credit Lender’s Commitment Percentage be increased as a result of any such
failure of any other Revolving Credit Lender to fund its Commitment Percentage
of a Swingline Loan.

               (ii) The U.S. Borrower shall pay to the Swingline Lender on demand the
amount of such Swingline Loans to the extent amounts received from the
Revolving Credit Lenders are not sufficient to repay in full the outstanding
Swingline Loans requested or required to be refunded. In addition, the U.S.
Borrower hereby authorizes the Administrative Agent to charge any account
maintained by the U.S. Borrower with the Swingline Lender or any Affiliate
thereof (up to the amount available therein) in order to immediately pay the
Swingline Lender the amount of such Swingline Loans to the extent amounts
received from the Revolving Credit Lenders are not sufficient to repay in full
the outstanding Swingline Loans requested or required to be refunded. If any
portion of any such amount paid to the Swingline Lender shall be recovered by
or on behalf of the U.S. Borrower from the Swingline Lender in bankruptcy or
otherwise, the loss of the amount so recovered shall be ratably shared among
all the Revolving Credit Lenders in accordance with their respective Commitment
Percentages.

               (iii) Each Revolving Credit Lender acknowledges and agrees that its
obligation to refund Swingline Loans in accordance with the terms of this
Section 2.3 is absolute and unconditional and shall not be affected by
any circumstance whatsoever, including, without limitation, non-satisfaction of
the conditions set forth in Article V. Further, each Revolving Credit
Lender acknowledges and agrees and acknowledges that if prior to the refunding
of any outstanding Swingline Loans pursuant to this Section 2.3, one of
the Events of Default described in Sections 12.1(i) or (j) shall
have occurred, each Revolving Credit Lender will, on the date the applicable
Revolving Credit Loan would have been made, purchase an undivided participating
interest in the Swingline Loan to be refunded in an amount equal to its
Commitment Percentage of the aggregate amount of such Swingline Loan. Each
Revolving Credit Lender will immediately transfer to the Swingline Lender, in
immediately available funds, the amount of its participation and upon receipt
thereof the Swingline Lender will deliver to such Revolving Credit Lender a
certificate evidencing such participation dated the date of receipt of such
funds and for such amount. Whenever, at any time after the Swingline Lender
has received from any Revolving Credit Lender such Lender’s participating
interest in a Swingline Loan, the Swingline Lender receives any payment on
account thereof, the Swingline Lender will distribute to such Revolving Credit
Lender its participating interest in such amount (appropriately adjusted, in
the case of interest payments, to reflect the period of time during which such
Revolving Credit Lender’s participating interest was outstanding and funded).

               (iv) In the event that any Revolving Credit Lender fails to make payment
to the Swingline Lender of any amount due under this Section, the
Administrative Agent, on behalf of the Swingline Lender, shall be entitled to
receive, retain and apply against such obligation the principal and interest
otherwise payable to such Revolving Credit Lender hereunder until the

28

 

Swingline
Lender receives such payment from such Revolving Credit Lender or such
obligation is otherwise fully satisfied. In addition to the foregoing, if for
any reason any Revolving Credit
Lender fails to make payment to the Swingline Lender of any amount due
under this Section, such Revolving Credit Lender shall be deemed, at the option
of the Administrative Agent, to have unconditionally and irrevocably purchased
from the Swingline Lender, without recourse or warranty, an undivided interest
and participation in the applicable Swingline Loan, and such interest and
participation may be recovered from such Revolving Credit Lender together with
interest thereon at the Federal Funds Effective Rate for each day during the
period commencing on the date of demand and ending on the date such amount is
received.

     SECTION 2.4 Procedure for Advances of Loans.

     (a) Requests for Borrowing. The U.S. Borrower, on behalf of the
applicable Borrower, shall give the Administrative Agent irrevocable prior
written notice substantially in the form attached hereto as Exhibit B (a
“Notice of Borrowing”) not later than Noon (i) on the same Business Day
as each Base Rate Loan, each Canadian Dollar Loan and each Swingline Loan, and
(ii) at least three (3) Business Days before each LIBOR Rate Loan of its
intention to borrow, specifying the following:

	(A)	 	the applicable Borrower;
	 
	(B)	 	the date of such borrowing, which shall be a
Business Day;
	 
	(C)	 	whether such Loan is to be a Revolving Credit
Loan, a Canadian Dollar Loan or a Swingline Loan;
	 
	(D)	 	if such Loan is a Revolving Credit Loan, whether
such Revolving Credit Loan shall be denominated in Dollars or
an Alternative Currency;
	 
	(E)	 	if such Loan is a Revolving Credit Loan in
Dollars, whether such Revolving Credit Loan shall be a LIBOR
Rate Loan or a Base Rate Loan;
	 
	(F)	 	the amount of such borrowing, which shall be in
an amount (or the Alternative Currency Amount, if applicable)
equal to the amount of the Revolving Credit Commitment, the
Alternative Currency Commitment, the Canadian Dollar
Commitment or the Swingline Commitment, as applicable, then
available to the Borrowers, or if less, (1) with respect to
Base Rate Loans (other than Swingline Loans), in an aggregate
principal amount of $500,000 or a whole multiple of $500,000
in excess thereof, (2) with respect to Canadian Base Rate
Loans, in an aggregate principal amount of C$100,000 or a
whole multiple of C$100,000 in excess thereof (3) with respect
to LIBOR Rate Loans denominated in Dollars in an aggregate
principal amount of $500,000 or a whole multiple of $500,000
in excess thereof, (4) with respect to LIBOR Rate Loans
denominated in euro in an aggregate principal amount of
€ 500,000 or a whole multiple of €250,000 in excess
thereof, (5) with respect to LIBOR Rate Loans

29

 

	 	 	denominated in
Pounds Sterling in an aggregate principal amount of
£500,000 or a whole multiple of £250,000 in excess thereof,
(6) with respect to LIBOR Rate Loans denominated in a
Permitted Currency (other than Pounds Sterling, Canadian
Dollars, or euro), based upon the Alternative Currency Amount
thereof, in an aggregate principal amount of $500,000 or a
whole multiple of $500,000 in excess thereof and (7) with
respect to Swingline Loans, in an aggregate principal amount
of $100,000 or a whole multiple of $100,000 in excess
thereof; and

	(H)	 	in the case of a LIBOR Rate Loan, the duration of
the Interest Period applicable thereto.

A Notice of Borrowing received after Noon shall be deemed received on the next
Business Day. The Administrative Agent shall promptly notify the Lenders of
each Notice of Borrowing.

     (b) Disbursement of Loans.

               (i) Not later than 2:00 p.m. on the proposed borrowing date for any
Revolving Credit Loan denominated in Dollars, each Revolving Credit Lender will
make available to the Administrative Agent, for the account of the applicable
Borrower, at the office of the Administrative Agent in Dollars in funds
immediately available to the Administrative Agent, such Revolving Credit
Lender’s Commitment Percentage of the Revolving Credit Loans to be made on such
borrowing date.

               (ii) Not later than Noon (the time of the location of the office of the
Administrative Agent’s Correspondent) on or before the proposed borrowing date
for any Revolving Credit Loan denominated in an Alternative Currency, each
Revolving Credit Lender will make available to the Administrative Agent, for
the account of the applicable Borrower, at the location of the office of the
Administrative Agent’s Correspondent in the requested Alternative Currency in
funds immediately available to the Administrative Agent, such Revolving Credit
Lender’s Commitment Percentage of the Revolving Credit Loan to be made on such
borrowing date.

               (iii) Not later than 1:00 p.m. (Toronto, Ontario time) on the proposed
borrowing date for any Canadian Base Rate Loan, the Canadian Dollar Lender will
make available to the Administrative Agent, for the account of the Canadian
Borrower, at the office of the Canadian Dollar Lender in Canadian Dollars in
funds immediately available to the Administrative Agent, the Canadian Dollar
Loan to be made on such borrowing date.

               (iv) Not later than 2:00 p.m. on the proposed borrowing date for any
Swingline Loan, as applicable, the Swingline Lender will make available to the
Administrative Agent, for the account of the U.S. Borrower, at the office of
the Administrative Agent in Dollars in funds immediately available to the
Administrative Agent, the Swingline Loans to be made on such borrowing date.

30

 

               (v) The Borrowers hereby irrevocably authorize the Administrative Agent
to, and the Administrative Agent shall promptly, disburse the proceeds of each
borrowing requested
pursuant to this Section 2.4(b) in immediately available funds by
crediting or wiring such proceeds to the deposit account of the applicable
Borrower identified in the most recent notices substantially in the form of
Exhibit C hereto (a “Notice of Account Designation”) delivered by the
U.S. Borrower, on behalf of itself and the other Borrowers, to the
Administrative Agent or as may be otherwise agreed upon by the U.S. Borrower,
on behalf of itself and the other Borrowers, and the Administrative Agent from
time to time. Subject to Section 4.7 hereof, the Administrative Agent
shall not be obligated to disburse any amount with respect to any Loan
requested pursuant to this Section 2.4(b) to the extent that such amount
has not been made available by the applicable Lenders to the Administrative
Agent.

               (vi) Revolving Credit Loans to be made for the purpose of (A) refunding
Swingline Loans shall be made by the Revolving Credit Lenders as provided in
Section 2.3(b) and (B) refunding Canadian Dollar Loans shall be made by
the Revolving Credit Lenders as provided in Section 2.2(b).

     SECTION 2.5 Repayment of Loans.

     (a) Repayment on Maturity Date. The Borrowers agree to repay the
outstanding principal amount of (i) all Revolving Credit Loans in full in the
Permitted Currency in which the Revolving Credit Loan was initially funded on
the Maturity Date, (ii) all Canadian Dollar Loans in full in Canadian Dollars
on the Maturity Date, and (iii) all Swingline Loans in accordance with
Section 2.3(b) or, if earlier, on the Maturity Date, together, in each
case, with all accrued but unpaid interest thereon.

     (b) Mandatory Repayment of Revolving Credit Loans.

               (i) Aggregate Commitment. If at any time (as determined by the
Administrative Agent under Section 2.5(b)(vi)), based upon the Dollar
Amount of all outstanding Loans and L/C Obligations, (A) solely because of
currency fluctuation, the outstanding principal amount of all outstanding
Extensions of Credit exceeds one hundred and five percent (105%) of the
Aggregate Commitment or (B) for any other reason, the outstanding principal
amount of all outstanding Extensions of Credit exceeds the Aggregate
Commitment, then, in each such case, the Borrowers shall designate which
Revolving Credit Loans to be repaid or, in the event of no such designation,
shall (1) first, if (and to the extent) necessary to eliminate such
excess, immediately repay outstanding Swingline Loans (and/or reduce any
pending request for a borrowing of such Loans submitted in respect of such
Loans on such day) by the Dollar Amount of such excess, (2) second, if
(and to the extent) necessary to eliminate such excess, immediately repay
outstanding Revolving Credit Loans which are Base Rate Loans (and/or reduce any
pending requests for a borrowing or continuation or conversion of such Loans
submitted in respect of such Loans on such day) by the Dollar Amount of such
excess, (3) third, if (and to the extent) necessary to eliminate such
excess, immediately repay outstanding Revolving Credit Loans which are LIBOR
Rate Loans denominated in Dollars (and/or reduce any pending requests for a
borrowing or continuation or conversion of such Loans submitted in respect of
such Loans on such day) by the Dollar Amount
of such excess, (4) fourth, if (and to the extent)

31

 

necessary to
eliminate such excess, immediately repay outstanding Alternative Currency Loans
(other than Canadian Dollar Loans) (and/or reduce any pending requests for a
borrowing or continuation or conversion of such Loans submitted in respect of
such Loans on such day) by the Dollar Amount of such excess, (5) fifth,
if (and to the extent) necessary to eliminate such excess, immediately repay
outstanding Canadian Dollar Loans (and/or reduce any pending requests for a
borrowing of such Loans submitted in respect of such Loans on such day) by the
Dollar Amount of such excess, and (6) sixth, with respect to any Letters
of Credit then outstanding, if (and to the extent) necessary to eliminate such
excess make a payment of cash collateral into a cash collateral account opened
by the Administrative Agent for the benefit of the Revolving Credit Lenders in
an amount equal to the aggregate then undrawn and unexpired amount of such
Letters of Credit (such cash collateral to be applied in accordance with
Section 12.2(b)).

               (ii) Alternative Currency Commitment. If at any time (as
determined by the Administrative Agent under Section 2.5(b)(vi)), based
upon the Dollar Amount of all outstanding Loans and L/C Obligations, (A) solely
because of currency fluctuation, the outstanding principal amount of all
Alternative Currency Loans exceeds the lesser of (1) one hundred and five
percent (105%) of the Aggregate Commitment less the sum of all
outstanding Revolving Credit Loans denominated in Dollars, Swingline Loans and
L/C Obligations and (2) one hundred and five percent (105%) of the Alternative
Currency Commitment or (B) for any other reason, the outstanding principal
amount of all Alternative Currency Loans exceeds the lesser of (1) the
Aggregate Commitment less the sum of all outstanding Revolving Credit
Loans denominated in Dollars and L/C Obligations and (2) the Alternative
Currency Commitment, then, in each such case, Alternative Currency Loan(s)
shall be immediately repaid, in the currency in which such Alternative Currency
Loan(s) were initially funded, by the applicable Borrower or Borrowers to the
Administrative Agent for the account of the Revolving Credit Lenders, in such
amount as is necessary to reduce the outstanding Dollar Amount of Alternative
Currency Loans to an amount equal to the lesser of (1) the Aggregate Commitment
less the sum of all outstanding Revolving Credit Loans denominated in
Dollars and L/C Obligations and (2) the Alternative Currency Commitment. Such
payments will be applied to such Alternative Currency Loans as directed by the
Borrower.

               (iii) Canadian Dollar Commitment. If at any time (as determined by
the Administrative Agent under Section 2.5(b)(vi)), based upon the
Dollar Amount of all outstanding Loans and L/C Obligations, (A) solely because
of currency fluctuation, the outstanding principal amount of all Canadian
Dollar Loans exceeds one hundred five percent (105%) of the Canadian Dollar
Commitment or (B) for any other reason, the outstanding principal amount of all
Canadian Dollar Loans exceeds the Canadian Dollar Commitment, then, in each
such case, Canadian Dollar Loan(s) shall be immediately repaid, in Canadian
Dollars, by the Canadian Borrower to the Administrative Agent for the account
of the Canadian Dollar Lender, in such amount as is necessary to reduce the
outstanding Dollar Amount of Canadian Dollar Loan(s) to an amount equal to the
Canadian Dollar Commitment. Such payments will be applied to such Canadian
Dollars Loans as directed by the Borrower.

               (iv) Swingline Commitment. If at any time (as determined by the
Administrative Agent under Section 2.5(b)(vi)), based upon the Dollar
Amount of all
Outstanding Loans and L/C Obligations, and for any reason, the outstanding
aggregate principal amount of all

32

 

Swingline Loans exceeds the Swingline
Commitment, then, in each such case, such excess shall be immediately repaid,
in Dollars, by the U.S. Borrower to the Administrative Agent for the account of
the Swingline Lender. Such payments will be applied to such Swingline Loans as
directed by the Borrower.

               (v) Excess L/C Obligations. If at any time (as determined by the
Administrative Agent under Section 2.5(b)(vi)), based upon the Dollar
Amount of all outstanding Loans and L/C Obligations, and for any reason, the
outstanding amount of all L/C Obligations exceeds the L/C Commitment, then, in
each such case, the U.S. Borrower shall make a payment of cash collateral into
a cash collateral account opened by the Administrative Agent, for the benefit
of itself and the Lenders, in an amount equal to the lesser of such excess and
the aggregate then undrawn and unexpired amount of such Letters of Credit (such
cash collateral to be applied in accordance with Section 12.2(b)).

               (vi) Compliance and Payments. The Borrowers’ compliance with this
Section 2.5(b) shall be tested from time to time by the Administrative
Agent at its sole discretion, but in any event shall be tested on the date on
which (A) the U.S. Borrower, on behalf of the applicable Borrower, requests
that the Lenders make a Loan, or (B) the U.S. Borrower requests that the
applicable Issuing Lender issue, extend or renew a Letter of Credit, and
thereafter at each six (6) month anniversary thereof. Each such repayment
pursuant to this Section 2.5(b) shall be accompanied by any amount
required to be paid pursuant to Section 4.11.

     (c) Optional Prepayments. The Borrowers may at any time and from
time to time prepay the Loans (in the same Permitted Currency in which the
applicable Loan was funded), in whole or in part, (i) upon at least three (3)
Business Days’ irrevocable notice to the Administrative Agent with respect to
LIBOR Rate Loans denominated in Dollars, (ii) upon at least one (1) Business
Day irrevocable notice to the Administrative Agent with respect to Canadian
Dollar Loans, and (iii) upon irrevocable notice to the Administrative Agent by
Noon on the same Business Day with respect to Base Rate Loans or Swingline
Loans, substantially in the form attached hereto as Exhibit D (a “Notice of
Prepayment”), specifying (A) the date of prepayment, (B) the amount of
prepayment, (C) whether the prepayment is of Revolving Credit Loans,
Alternative Currency Loan, Canadian Dollar Loans, Swingline Loans or a
combination thereof, and, if of a combination thereof, the amount allocable to
each, (D) with respect to LIBOR Rate Loans denominated in an Alternative
Currency, LIBOR Rate Loans denominated in Dollars, Base Rate Loans, Canadian
Dollar Loans or a combination thereof, and, if of a combination thereof, the
amount allocable to each. Upon receipt of such notice, the Administrative
Agent shall promptly notify each Lender. If any such notice is given, the
amount specified in such notice shall be due and payable on the date set forth
in such notice. Partial prepayments shall be in an aggregate amount of:

               (i) $500,000 or a whole multiple of $500,000 in excess thereof with
respect to Base Rate Loans (other than Swingline Loans),

               (ii) C$100,000 or a whole multiple of C$100,000 in excess thereof with
respect to Canadian Base Rate Loans,

33

 

               (iii) $500,000 or a whole multiple of $500,000 in excess thereof with
respect to LIBOR Rate Loans denominated in Dollars,

               (iv), €500,000 or a whole multiple of €250,000 in excess thereof
with respect to LIBOR Rate Loans denominated in euro,

               (v) £500,000 or a whole multiple of £250,000 in excess thereof with
respect to LIBOR Rate Loans denominated in Pounds Sterling,

               (vi) $500,000 or a whole multiple of $500,000 in excess thereof with
respect to LIBOR Rate Loans denominated in a Permitted Currency (other than
Pounds Sterling, Canadian Dollars, or euro), based upon the Alternative
Currency Amount thereof, and

               (vii) $100,000 or a whole multiple of $100,000 in excess thereof with
respect to Swingline Loans.

A Notice of Prepayment received after applicable time set forth above shall be
deemed received on the next Business Day. Each such prepayment shall be
accompanied by any amount required to be paid pursuant to Section 4.11
(to the extent that the Borrower has received notice of the amount due pursuant
to such Section at the time of such prepayment); provided that any such
amounts due under Section 4.11 that are not paid at the time of such
prepayment shall be paid by the Borrower promptly upon demand therefor.

     (d) Limitation on Prepayment of LIBOR Rate Loans. The Borrowers
may not prepay any LIBOR Rate Loan on any day other than on the last day of the
Interest Period applicable thereto unless such prepayment is accompanied by any
amount required to be paid pursuant to Section 4.11 hereof.

     (e) Payment of Interest. Each repayment pursuant to this
Section 2.5(e) shall be accompanied by accrued interest on the amount
prepaid.

     (f) Hedging Agreements. All Hedging Agreements, if any, between
any Credit Party and a Lender or an Affiliate of a Lender are independent
agreements governed by the written provisions of said Hedging Agreements which
will remain in full force and effect, unaffected by any repayment, prepayment,
acceleration, reduction, increase or change in the terms of this Agreement or
the other Loan Documents, except as may be otherwise provided in said Hedging
Agreement, and any payoff statement from the Administrative Agent relating to
the Credit Facility shall not apply to said Hedging Agreements except as
otherwise expressly provided in such payoff statement.

     SECTION 2.6 Permanent Reduction of the Aggregate Commitment.

     (a) Voluntary Reduction. The U.S. Borrower, on behalf of the
Borrowers, shall have the right at any time and from time to time, upon at
least three (3) Business Days prior written notice to the Administrative Agent,
to permanently reduce, without premium or penalty, (i) the entire Aggregate
Commitment at any time or (ii) portions of the Aggregate Commitment, from

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time
to time, in an aggregate principal amount not less than $1,000,000 or any whole
multiple of $1,000,000 in excess thereof. Any reduction of the Aggregate
Commitment shall (i) be applied to the Commitment of each Lender according to
its Commitment Percentage and (ii) permanently reduce the Alternative Currency
Commitment and the Canadian Dollar Commitment pro rata in
accordance with the relative amount of the Alternative Currency Commitment, the
Canadian Dollar Commitment and the Revolving Credit Commitment. All fees
accrued until the effective date of any termination of the Aggregate Commitment
shall be paid on the effective date of such termination.

     (b) Corresponding Payment. Each permanent reduction permitted
pursuant to this Section 2.6(b) shall be accompanied, if necessary, by a
payment of principal sufficient to reduce (i) the aggregate Dollar Amount of
all outstanding Loans and L/C Obligations, as applicable, after such reduction
to the Aggregate Commitment as so reduced, (ii) to the extent that the Canadian
Commitment is reduced, the aggregate Dollar Amount of all outstanding Canadian
Dollar Loans to the Canadian Commitment as so reduced and (iii) to the extent
that the outstanding Alternative Currency Commitment is reduced, the aggregate
Dollar Amount of all outstanding Alternative Currency Loans to the Alternative
Currency Commitment as so reduced. If the Aggregate Commitment as so reduced
is less than the aggregate amount of all outstanding Letters of Credit, the
U.S. Borrower shall be required to deposit cash collateral in a cash collateral
account opened by the Administrative Agent in an amount equal to the lesser of
the difference and the aggregate then undrawn and unexpired amount of such
Letters of Credit. Such cash collateral shall be applied in accordance with
Section 12.2(b). Any reduction of the Aggregate Commitment to zero
shall be accompanied by payment of all outstanding Revolving Credit Loans,
Swingline Loans and Canadian Dollar Loans (and furnishing of cash collateral
satisfactory to the Administrative Agent for all L/C Obligations) and shall
result in the termination of the Aggregate Commitment, the Alternative Currency
Commitment, the Swingline Commitment, the Canadian Commitment and the Revolving
Credit Facility. Such cash collateral shall be applied in accordance with
Section 12.2(b). If the reduction of the Aggregate Commitment requires
the repayment of any LIBOR Rate Loan, such repayment shall be accompanied by
any amount required to be paid pursuant to Section 4.11 hereof.

     SECTION 2.7 Termination of Revolving Credit Facility. The
Revolving Credit Facility shall terminate on the Maturity Date.

     SECTION 2.8 Nature of Obligations. The obligations of the U.S.
Borrower hereunder and under the other Loan Documents shall be joint and
several with the Obligations of the Foreign Borrowers; provided, that no
Foreign Borrower shall be liable for the Obligations of the U.S. Borrower nor
any other Foreign
Borrower. The Obligations of each of the UK Borrower, the German Borrower and
the Canadian Borrower hereunder and under the other Loan Documents shall be
several and not joint and several.

     SECTION 2.9 Increase of Aggregate Commitment. So long as no
Default or Event of Default shall have occurred and be continuing, at any time
prior to and including the third (3rd) anniversary of the Closing Date, the
U.S. Borrower shall have the right, in consultation with the Administrative
Agent, from time to time and upon not less than fifteen (15) days prior

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written
notice to the Administrative Agent to increase the Revolving Credit Commitment;
provided that:

     (a) Each increase in the Aggregate Commitment shall be in an aggregate
principal amount of at least $5,000,000 or a whole multiple of $5,000,000 in
excess thereof up to a maximum total increase in the Aggregate Commitment of
$50,000,000. Increases in the Revolving Credit Commitment pursuant to this
Section 2.9 shall not increase or otherwise affect the Canadian Dollar
Commitment or the Swingline Commitment.

     (b) (i) Each existing Lender shall have the right, but not the obligation,
to commit to all or a portion of the proposed increase, (ii) the failure by any
existing Lender to respond to a request for such increase shall be deemed to be
a refusal of such request by such existing Lender and (iii) if the
Administrative Agent does not receive sufficient commitments from the existing
Lenders to fund the entire amount of the proposed increase, the U.S. Borrower
may then solicit commitments from other banks, financial institutions or
investment funds that are reasonably acceptable to both the Administrative
Agent and the U.S. Borrower.

     (c) Any increase in the Aggregate Commitment which is accomplished by
increasing the Commitment of any Lender or Lenders who are at the time of such
increase party to this Agreement (which Lender or Lenders shall consent to such
increase in their sole and absolute discretion) shall be accomplished as
follows: (i) this Agreement will be amended by the Parents, the Borrowers, the
Administrative Agent and those Lender(s) whose Commitment(s) is or are being
increased (but notwithstanding Section 14.2 without any requirement that the
consent of any other Lender be obtained) to reflect the revised Commitment of
each of the Lenders, (ii) entries in the Register will be revised to reflect
the revised Commitment and Commitment Percentage of each of the Lenders, (iii)
the outstanding Revolving Credit Loans and Commitment Percentages of Canadian
Dollar Loans, Swingline Loans and L/C Obligations will be reallocated on the
effective date of such increase among the Lenders in accordance with their
revised Commitment Percentages (and the Lenders agree to make all payments and
adjustments necessary to effect the reallocation and the Borrowers shall pay
any and all reasonable, out-of-pocket costs required pursuant to Section
4.11 in connection with such reallocation as if such reallocation were a
repayment) and (iv) if requested by such Lender or Lenders, the Borrowers will
deliver new Revolving Credit Note(s) to the Lender or Lenders whose
Commitment(s) is or are being increased reflecting the revised Commitment of
such Lender(s).

     (d) Any increase in the Aggregate Commitment which is accomplished by
addition of a new Lender or Lenders under the Agreement shall be accomplished
as follows: (i) each new Lender shall be an Eligible Assignee and shall be
subject to the consent of the Administrative Agent and the
U.S. Borrower, on behalf of itself and the Foreign Borrowers, which consents
shall not be unreasonably withheld, (ii) this Agreement will be amended by the
Parents, the Borrowers, the Administrative Agent and each new Lender (but
notwithstanding Section 14.2 without any requirement that the consent of any
other Lender be obtained) to reflect the addition of each new Lender as a
Lender hereunder, (iii) entries in the Register will be revised to reflect the
revised Commitment and Commitment Percentages of each of the Lenders (including
each new Lender), (iv) the outstanding Revolving Credit Loans and Commitment
Percentages of Canadian Dollar Loans, Swingline Loans and L/C Obligations will
be reallocated on the effective date of such

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increase among the Revolving
Credit Lenders (including each new Lender) in accordance with their revised
Commitment Percentages (and the Lenders (including each new Lender) agree to
make all payments and adjustments necessary to effect the reallocation and the
Borrowers shall pay any and all reasonable, out-of-pocket costs required
pursuant to Section 4.11 in connection with such reallocation as if such
reallocation were a repayment) and (v) at the request of any new Lender, the
Borrowers will deliver a Revolving Credit Note to such new Lender.

ARTICLE III

LETTER OF CREDIT FACILITY

     SECTION 3.1 L/C Commitment. Subject to the terms and conditions
hereof, the Issuing Lenders, in reliance on the agreements of the other Lenders
set forth in Section 3.4(a), agree to issue Letters of Credit for the
account of the U.S. Borrower on any Business Day from the Closing Date through
five (5) Business Days prior to the Maturity Date in such form as may be
approved from time to time by the applicable Issuing Lender; provided,
that the Issuing Lenders shall have no obligation to issue any Letter of Credit
if, after giving effect to such issuance, based upon the Dollar Amount of all
outstanding Loans and L/C Obligations, the aggregate amount of all outstanding
L/C Obligations would exceed the lesser of (i) the L/C Commitment or (ii) the
Aggregate Commitment less the aggregate principal amount of all outstanding
Loans. Each Letter of Credit (other than the Existing Letters of Credit) shall
(i) be denominated in a Permitted Currency in a minimum amount of Fifty
Thousand Dollars ($50,000) (or the Alternative Currency Amount thereof with
respect to any Letter of Credit denominated in an Alternative Currency) or a
lesser amount acceptable to the applicable Issuing Lender, (ii) be a standby
letter of credit issued to support obligations of the Credit Parties or any of
their Subsidiaries, contingent or otherwise, incurred in the ordinary course of
business, (iii) expire on a date satisfactory to the applicable Issuing Lender,
which date shall be no later than the earlier of (A) five (5) Business Days
prior to the Maturity Date and (B) one year after its date of issuance, and
(iv) be subject to the Uniform Customs and/or ISP98, as set forth in the
applicable Letter of Credit Application or as determined by the applicable
Issuing Lender and, to the extent not inconsistent therewith, the laws of the
State of New York or such other jurisdiction as is agreed to by the applicable
Issuing Lender. As of the Closing Date, each of the Existing Letters of Credit
shall constitute, for all purposes of this Agreement and the other Loan
Documents, a Letter of Credit issued and outstanding hereunder. An Issuing
Lender shall not at any time be obligated to issue any Letter of Credit
hereunder if such issuance would conflict with, or cause such Issuing Lender or
any L/C Participant to exceed any limits imposed by, any Applicable Law.
References herein to “issue” and derivations thereof with respect to Letters of
Credit shall
also include extensions or modifications of any Existing Letters of Credit,
unless the context otherwise requires.

     SECTION 3.2 Procedure for Issuance of Letters of Credit. The U.S.
Borrower may from time to time request that the applicable Issuing Lender issue
a Letter of Credit by delivering to the applicable Issuing Lender at the
applicable address therefore and to the Administrative Agent at the
Administrative Agent’s Office a Letter of Credit Application therefor,
completed to the satisfaction of the applicable Issuing Lender, and such other
certificates, documents and other papers and information as the applicable
Issuing Lender may

37

 

request (which information shall include the Permitted
Currency in which the Letters of Credit shall be denominated). Upon receipt of
any Letter of Credit Application, the applicable Issuing Lender shall process
such Letter of Credit Application and the certificates, documents and other
papers and information delivered to it in connection therewith in accordance
with its customary procedures and shall, subject to Section 3.1 and
Article V, promptly issue the Letter of Credit requested thereby (but in
no event shall the applicable Issuing Lender be required to issue any Letter of
Credit earlier than three (3) Business Days after its receipt of the Letter of
Credit Application therefor and all such other certificates, documents and
other papers and information relating thereto) by issuing the original of such
Letter of Credit to the beneficiary thereof or as otherwise may be agreed by
the applicable Issuing Lender and the applicable Borrower. The applicable
Issuing Lender shall promptly furnish to the U.S. Borrower a copy of such
Letter of Credit and promptly notify each Revolving Credit Lender of the
issuance and upon request by any Revolving Credit Lender, furnish to such
Revolving Credit Lender a copy of such Letter of Credit and the amount of such
Revolving Credit Lender’s participation therein.

     SECTION 3.3 Commissions and Other Charges.

     (a) Letter of Credit Commissions. The U.S. Borrower shall pay to
the Administrative Agent, for the account of the applicable Issuing Lender and
the L/C Participants, a letter of credit commission with respect to each Letter
of Credit in an amount equal to the face amount of such Letter of Credit
multiplied by the Applicable Margin with respect to Revolving Credit
Loans that are LIBOR Rate Loans (determined on a per annum basis). Such
commission shall be payable quarterly in arrears on the last Business Day of
each calendar quarter, on the Maturity Date and thereafter on demand of the
Administrative Agent. The Administrative Agent shall, promptly following its
receipt thereof, distribute to the applicable Issuing Lender and the L/C
Participants all commissions received pursuant to this Section 3.3(a) in
accordance with their respective Commitment Percentages.

     (b) Issuance Fee. In addition to the foregoing commission, the
U.S. Borrower shall pay to the applicable Issuing Lender, an issuance fee with
respect to each Letter of Credit issued thereby in an amount equal to the face
amount of such Letter of Credit multiplied by one-eighth of one percent
(0.125%) per annum. Such issuance fee shall be payable quarterly in arrears on
the last Business Day of each calendar quarter commencing with the first such
date to occur after the issuance of such Letter of Credit, on the Maturity Date
and thereafter on demand of the applicable Issuing Lender.

     (c) Other Costs. In addition to the foregoing fees and
commissions, the U.S. Borrower shall pay or reimburse the applicable Issuing
Lender for such normal and customary costs and reasonable, out-of-pocket
expenses as are incurred or charged by the applicable Issuing Lender in
issuing, effecting payment under, amending or otherwise administering any
Letter of Credit.

     SECTION 3.4 L/C Participations.

     (a) The Issuing Lenders irrevocably agree to grant and hereby grant to
each L/C Participant, and, to induce the Issuing Lenders to issue Letters of
Credit hereunder, each L/C

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Participant irrevocably agrees to accept and
purchase and hereby accepts and purchases from the applicable Issuing Lender,
on the terms and conditions hereinafter stated, for such L/C Participant’s own
account and risk an undivided interest equal to such L/C Participant’s
Commitment Percentage in the applicable Issuing Lender’s obligations and rights
under and in respect of each Letter of Credit issued by such Issuing Lender
hereunder and the amount of each draft paid by the applicable Issuing Lender
thereunder. Each L/C Participant unconditionally and irrevocably agrees with
the Issuing Lenders that, if a draft is paid under any Letter of Credit for
which the applicable Issuing Lender is not reimbursed in full by the U.S.
Borrower through a Revolving Credit Loan or otherwise in accordance with the
terms of this Agreement, such L/C Participant shall pay to the applicable
Issuing Lender in the applicable Permitted Currency upon demand at the
applicable Issuing Lender’s address for notices specified herein an amount
equal to such L/C Participant’s Commitment Percentage of the amount of such
draft, or any part thereof, which is not so reimbursed.

     (b) Upon becoming aware of any amount required to be paid by any L/C
Participant to any Issuing Lender pursuant to Section 3.4(a) in respect
of any unreimbursed portion of any payment made by any Issuing Lender under any
Letter of Credit, the applicable Issuing Lender shall notify each L/C
Participant of the amount and due date of such required payment and such L/C
Participant shall pay to the applicable Issuing Lender in the applicable
Permitted Currency the amount specified on the applicable due date. If any
such amount is paid to the applicable Issuing Lender after the date such
payment is due, such L/C Participant shall pay to the applicable Issuing Lender
in the applicable Permitted Currency on demand, in addition to such amount, the
product of (i) such amount, times (ii) the daily average Federal Funds
Rate as determined by the Administrative Agent during the period from and
including the date such payment is due to the date on which such payment is
immediately available to the applicable Issuing Lender, times (iii) a
fraction the numerator of which is the number of days that elapse during such
period and the denominator of which is 360. A certificate of the Issuing
applicable Lender with respect to any amounts owing under this Section
3.4 shall be conclusive in the absence of manifest error. With respect to
payment to any Issuing Lender of the unreimbursed amounts described in this
Section 3.4, if the L/C Participants receive notice that any such
payment is due (A) prior to 1:00 p.m. on any Business Day, such payment shall
be due that Business Day, and (B) after 1:00 p.m. on any Business Day, such
payment shall be due on the following Business Day.

     (c) Whenever, at any time after the applicable Issuing Lender has made
payment under any Letter of Credit and has received from any L/C Participant
its Commitment Percentage of such payment in accordance with this Section
3.4(c), the applicable Issuing Lender receives any payment related to such
Letter of Credit (whether directly from the U.S. Borrower or otherwise), or any
payment of interest on account thereof, the applicable Issuing Lender will
distribute to such L/C Participant its pro rata share thereof;
provided, that in the event that any such payment received by the
applicable Issuing Lender shall be required to be returned by the applicable
Issuing Lender, such L/C Participant shall return to the applicable Issuing
Lender the portion thereof previously distributed by the applicable Issuing
Lender to it.

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     (d) The commissions, reasonable, out-of-pocket fees, charges, costs and
expenses payable pursuant to this Section 3.4 shall be payable in the
Permitted Currency in which the applicable Letter of Credit is denominated.

     SECTION 3.5 Reimbursement Obligation of the Borrowers.

     (a) In the event of any drawing under any Letter of Credit, the U.S.
Borrower agrees to reimburse (either with the proceeds of a Revolving Credit
Loan as provided for in this Section 3.5 or with funds from other
sources), in same day funds in the applicable Permitted Currency in which the
Letter of Credit was denominated, the applicable Issuing Lender on each date on
which the applicable Issuing Lender notifies the U.S. Borrower of the date and
amount of a draft paid under any Letter of Credit for the amount of (a) such
draft so paid and (b) any amounts referred to in Section 3.3(c) incurred
by the applicable Issuing Lender in connection with such payment. Unless the
U.S. Borrower shall immediately notify the applicable Issuing Lender that it
intends to reimburse the applicable Issuing Lender for such drawing from other
sources or funds, the U.S. Borrower shall be deemed to have timely given a
Notice of Borrowing to the Administrative Agent requesting that the Revolving
Credit Lenders make a Revolving Credit Loan bearing interest at the Base Rate
on such date in the amount of (a) such draft so paid and (b) any amounts
referred to in Section 3.3(c) incurred by the applicable Issuing Lender
in connection with such payment (including, without limitation, any and all
reasonable, out-of-pocket costs, fees and other expenses incurred by the
applicable Issuing Lender in effecting the payment of the Letter of Credit
denominated in an Alternative Currency), and the Revolving Credit Lenders shall
make a Revolving Credit Loan bearing interest at the Base Rate in such amount,
the proceeds of which shall be applied to reimburse the applicable Issuing
Lender for the amount of the related drawing and costs and expenses. Each
Revolving Credit Lender acknowledges and agrees that its obligation to fund a
Revolving Credit Loan in accordance with this Section 3.5(a) to
reimburse the applicable Issuing Lender for any draft paid under a Letter of
Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including, without limitation, non-satisfaction of the
conditions set forth in Section 2.5(a) or Article V. If the U.S.
Borrower has elected to pay the amount of such drawing with funds from other
sources and shall fail to reimburse the applicable Issuing Lender as provided
above, the unreimbursed amount of such drawing shall bear interest at the rate
which would be payable on any outstanding Base Rate Loans which were
then overdue from the date such amounts become payable (whether at stated
maturity, by acceleration or otherwise) until payment in full.

     (b) Exchange Indemnification and Increased Costs. The U.S.
Borrower shall, upon demand from any Issuing Lender or L/C Participant, pay to
such Issuing Lender or L/C Participant, the amount of (i) any loss or
reasonable cost or increased cost incurred by such Issuing Lender or L/C
Participant, (ii) any reduction in any amount payable to or in the effective
return on the capital to such Issuing Lender or L/C Participant, (iii) any
currency exchange loss, in each case that such Issuing Lender or L/C
Participant sustains as a result of the U.S. Borrower’s repayment in Dollars of
any Letter of Credit denominated in an Alternative Currency. A certificate of
such Issuing Lender setting forth in reasonable detail the basis for
determining such additional amount or amounts necessary to compensate such
Issuing Lender shall be conclusively presumed to be correct save for manifest
error.

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     SECTION 3.6 Obligations Absolute. The U.S. Borrower’s obligations
under this Article III (including, without limitation, the Reimbursement
Obligation) shall be absolute and unconditional under any and all circumstances
and irrespective of any set-off, counterclaim or defense to payment which the
U.S. Borrower may have or have had against the Issuing Lender or any
beneficiary of a Letter of Credit or any other Person. The U.S. Borrower also
agrees that the Issuing Lenders and the L/C Participants shall not be
responsible for, and the U.S. Borrower’s Reimbursement Obligation under
Section 3.5 shall not be affected by, among other things, the validity
or genuineness of documents or of any endorsements thereon, even though such
documents shall in fact prove to be invalid, fraudulent or forged, or any
dispute between or among the U.S. Borrower and any beneficiary of any Letter of
Credit or any other party to which such Letter of Credit may be transferred or
any claims whatsoever of the U.S. Borrower against any beneficiary of such
Letter of Credit or any such transferee. Neither Issuing Lender shall be
liable for any error, omission, interruption or delay in transmission, dispatch
or delivery of any message or advice, however transmitted, in connection with
any Letter of Credit, except for errors or omissions caused by such Issuing
Lender’s gross negligence or willful misconduct. The U.S. Borrower agrees that
any action taken or omitted by the applicable Issuing Lender under or in
connection with any Letter of Credit or the related drafts or documents, if
done in the absence of gross negligence or willful misconduct, shall be binding
on the U.S. Borrower and shall not result in any liability of the applicable
Issuing Lender or any L/C Participant to the U.S. Borrower. The responsibility
of the applicable Issuing Lender to the U.S. Borrower in connection with any
draft presented for payment under any Letter of Credit shall, in addition to
any payment obligation expressly provided for in such Letter of Credit, be
limited to determining that the documents (including each draft) delivered
under such Letter of Credit in connection with such presentment are in
conformity with such Letter of Credit.

     SECTION 3.7 Effect of Letter of Credit Application. To the extent
that any provision of any Letter of Credit Application related to any Letter of
Credit is inconsistent with the provisions of this Article III, the
provisions of this Article III shall govern.

ARTICLE IV

GENERAL LOAN PROVISIONS

     SECTION 4.1 Interest.

     (a) Interest Rate Options. Subject to the provisions of this
Section 4.1, at the election of the applicable Borrower, (i) Revolving
Credit Loans denominated in Dollars shall bear interest at (A) the Base Rate
plus the Applicable Margin or (B) the LIBOR Rate plus the Applicable
Margin (provided that the LIBOR Rate shall not be available until (3) Business
Days after the Closing Date), (ii) Revolving Credit Loans denominated in an
Alternative Currency shall bear interest at the LIBOR Rate plus the
Applicable Margin (provided that the LIBOR Rate shall not be available until
(3) Business Days after the Closing Date), (iii) Canadian Dollar Loans shall
bear interest at the Canadian Base Rate plus the Applicable Margin, and (iv)
Swingline Loans shall bear interest at the Base Rate plus the Applicable
Margin. The applicable Borrower shall select the rate of interest and Interest
Period, if any, applicable to any Loan at the time a Notice

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of Borrowing is
given pursuant to Section 2.4 or at the time a Notice of
Conversion/Continuation is given pursuant to Section 4.2. Each Loan or
portion thereof bearing interest based on the Base Rate (including, without
limitation, each Swingline Loan) shall be a “Base Rate Loan” and each Loan or
portion thereof bearing interest based on the LIBOR Rate shall be a “LIBOR Rate
Loan.” Any Loan or any portion thereof as to which such Borrower has not duly
specified an interest rate (excluding Alternative Currency Loans) as provided
herein shall be deemed a Base Rate Loan denominated in Dollars. Requests for
Alternative Currency Loans (other than Canadian Dollar Loans) as to which the
Borrower has not duly specified an interest rate and interest period shall be
deemed a LIBOR Rate Loan for a one (1) month interest period.

     (b) Interest Periods. In connection with each LIBOR Rate Loan, the
U.S. Borrower, on behalf of itself or the applicable Borrower, by giving notice
at the times described in Section 2.4 or 4.2, as applicable,
shall elect an interest period (each, an “Interest Period”) to be
applicable to such LIBOR Rate Loan, which Interest Period shall be a period of
one (1), two (2), three (3), or six (6) months; provided that:

               (i) the Interest Period shall commence on the date of advance of or
conversion to any LIBOR Rate Loan and, in the case of immediately
successive Interest Periods, each successive Interest Period shall
commence on the date on which the immediately preceding Interest Period
expires;

               (ii) if any Interest Period would otherwise expire on a day that is
not a Business Day, such Interest Period shall expire on the next
succeeding Business Day; provided, that if any Interest Period
with respect to a LIBOR Rate Loan would otherwise expire on a day that is
not a Business Day but is a day of the month after which no further
Business Day occurs in such month, such Interest Period shall expire on
the immediately preceding Business Day;

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

               (iv) no Interest Period shall extend beyond the Maturity Date; and

               (v) there shall be no more than eight (8) Interest Periods in effect
at any time.

     (c) Default Rate. (i) Automatically upon the occurrence and during
the continuance of an Event of Default under Sections 12.1(a),
(b), (i) and (j) and (ii) subject to Section 12.3,
at the election of the Required Lenders, upon the occurrence and during the
continuance of any other Event of Default, (A) the Borrowers shall no longer
have the option to request LIBOR Rate Loans, Swingline Loans or Letters of
Credit, (B) all outstanding LIBOR Rate Loans in Dollars shall bear interest at
a rate per annum of two percent (2%) in excess of the rate then applicable to
LIBOR Rate Loans until the end of the applicable Interest Period and
thereafter, during the continuation of such Event of Default, at a rate equal
to two percent (2%) in excess of the rate then applicable to Base Rate Loans,
(C) all outstanding LIBOR Rate Loans in Alternative

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Currencies (other than
Canadian Dollar Loans) shall bear interest at a rate per annum of two percent
(2%) in excess of the rate then applicable to LIBOR Rate Loans until the end of
the applicable Interest Period and thereafter during the continuation of such
Event of Default, shall be converted to Base Rate Loans in Dollars bearing
interest at a rate equal to two percent (2%) in excess of the rate then
applicable to Base Rate Loans, (D) all outstanding Canadian Base Rate Loans
shall bear interest at a rate per annum equal to two percent (2%) in excess of
the rate then applicable to Canadian Base Rate Loans and (E) all outstanding
Base Rate Loans, Swingline Loans and other Obligations arising hereunder or
under any other Loan Document shall bear interest at a rate per annum equal to
two percent (2%) in excess of the rate then applicable to Base Rate Loans.
Interest shall continue to accrue on the Obligations after the filing by or
against any Borrower of any petition seeking any relief in bankruptcy or under
any act or law pertaining to insolvency or debtor relief, whether state,
federal or foreign. The interest accrued pursuant to this Section
4.1(c) shall be payable by the applicable Borrower on demand of the
Administrative Agent.

     (d) Interest Payment and Computation.

               (i) Interest on each Base Rate Loan and each Canadian Base Rate Loan
shall be due and payable in arrears on the last Business Day of each
calendar quarter commencing March 31, 2005; and interest on each LIBOR
Rate Loan shall be due and payable on the last day of each Interest
Period applicable thereto, and if such Interest Period extends over three
(3) months, at the end of each three (3) month interval during such
Interest Period. Interest on LIBOR Rate Loans (except for Alternative
Currency Loans denominated in Pounds Sterling which should be computed on
the basis of a 365 day year) and all fees payable hereunder shall be
computed on the basis of a 360-day year and assessed for the actual
number of days elapsed and interest on Base Rate Loans and Canadian Base
Rate Loans shall be computed on the basis of a 365/66-day year and
assessed for the actual number of days elapsed.

               (ii) For greater certainty, whenever any amount is payable under
this Agreement or any other Loan Document by the Canadian Borrower as
interest or as a fee which requires the calculation of an amount using a
percentage per annum, each party to this Agreement acknowledges and
agrees that such amount shall be calculated as of the date payment is due
without application of the “deemed reinvestment principle” or the
“effective yield method” (e.g. when interest is calculated and payable
monthly, the rate of interest payable per month is 1/12 of the stated
rate of interest per annum).

     (e) Maximum Rate.

               (i) In no contingency or event whatsoever shall the aggregate of all
amounts deemed interest under this Agreement charged or collected
pursuant to the terms of this Agreement exceed the highest rate
permissible under any Applicable Law which a court of competent
jurisdiction shall, in a final determination, deem applicable hereto. In
the event that such a court determines that the Lenders have charged or
received interest hereunder in excess of the highest applicable rate, the
rate in effect hereunder shall automatically be reduced to the maximum
rate permitted by Applicable Law and the

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Lenders shall at the
Administrative Agent’s option (A) promptly refund to the Borrowers any
interest received by the Lenders in excess of the maximum lawful rate or
(B) apply such excess to the principal balance of the Obligations on a
pro rata basis. It is the intent hereof that the Borrowers not
pay or contract to pay, and that neither the Administrative Agent nor any
Lender receive or contract to receive, directly or indirectly in any
manner whatsoever, interest in excess of that which may be paid by the
Borrowers under Applicable Law.

               (ii) Notwithstanding the provisions of this Section 4.1 or
any other provision of this Agreement, in no event shall the aggregate
“interest” (as such term is defined in Section 347 of the Criminal Code
(Canada)) exceed the effective annual rate of interest on the “credit
advanced” (as such term is defined in Section 347 of the Criminal Code
(Canada)) lawfully permitted under Section 347 of the Criminal Code
(Canada). The effective annual rate of interest shall be determined in
accordance with generally accepted actuarial practices and principles
over the term of the applicable Loan, and in the event of a dispute, a
certificate of a Fellow of the Canadian Institute of Actuaries qualified
for a period of ten (10) years and appointed by the Canadian Dollar
Lender will be conclusive for the purposes of such determination. A
certificate of an authorized signing officer of the Canadian Dollar
Lender as to each amount and/or each rate of interest payable hereunder
from time to time shall be conclusive evidence of such amount and of such
rate, absent manifest error.

     (f) Basis of Accrual. Subject to Section 1.9 hereof, with
respect to the currency of any state that becomes a Participating Member State,
the accrual of interest or fees expressed in this Agreement with respect to
such currency shall be based upon the applicable convention or practice in the
London Interbank Market for the basis of accrual of interest or fees in respect
of the euro, which such convention or practice shall replace such expressed
basis effective as of and from the date on which such state becomes a
Participating
Member State; provided that if any Loan in the currency of such state is
outstanding immediately prior to such date, such replacement shall take effect,
with respect to such Loan, at the end of the then current Interest Period.

     SECTION 4.2 Notice and Manner of Conversion or Continuation of
Revolving Credit Loans. Provided that no Default or Event of Default has
occurred and is then continuing, the Borrowers shall have the option to (a)
convert at any time following the third Business Day after the Closing Date all
or any portion of any outstanding Base Rate Loans (other than Swingline Loans)
in a principal amount equal to $500,000 or any whole multiple of $500,000 in
excess thereof into one or more LIBOR Rate Loans denominated in Dollars, (b)
upon the expiration of any Interest Period, convert all or any part of its
outstanding LIBOR Rate Loans denominated in Dollars in a principal amount equal
to $500,000 or a whole multiple of $500,000 in excess thereof into Base Rate
Loans (other than Swingline Loans) or (c) upon the expiration of any Interest
Period, continue any LIBOR Rate Loan denominated in any Permitted Currency in a
principal amount of (a) $500,000 or any whole multiple of $500,000 in excess
thereof, if denominated in Dollars; (b) €500,000 or any whole multiple of
€500,000 in excess thereof, if denominated in euros (c) £500,000 or whole
multiple of £500,000 in excess thereof, if denominated in Pounds Sterling; and
(d) $500,000 or any whole multiple of $500,000 in excess

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thereof (or with
respect to LIBOR Rate Loans denominated in an Alternative Currency, the
Alternative Currency Amount in each case thereof) as a LIBOR Rate Loan in the
same Permitted Currency. Whenever a Borrower desires to convert or continue
Loans as provided above, the U.S. Borrower, on behalf of such Borrower, shall
give the Administrative Agent irrevocable prior written notice in the form
attached as Exhibit E (a “Notice of Conversion/Continuation”) not later
than 11:00 a.m. (Charlotte time) four (4) Business Days (with respect to any
Loan denominated in an Alternative Currency) and three (3) Business Days (with
respect to any Loan denominated in Dollars) before the day on which a proposed
conversion or continuation of such Loan is to be effective specifying (A) the
Loans to be converted or continued, and, in the case of any LIBOR Rate Loan to
be converted or continued, the last day of the Interest Period therefor, (B)
the Permitted Currency in which such Loan is denominated, (C) the effective
date of such conversion or continuation (which shall be a Business Day), (D)
the principal amount of such Loans to be converted or continued, and (E) the
Interest Period to be applicable to such converted or continued LIBOR Rate
Loan. The Administrative Agent shall promptly notify the Lenders of such
Notice of Conversion/Continuation.

     SECTION 4.3 Fees.

     (a) Commitment Fee. Commencing on the Closing Date, the Borrowers
shall pay to the Administrative Agent, for the account of the Lenders (other
than the Canadian Dollar Lender), a non-refundable commitment fee at a rate per
annum corresponding to the Applicable Margin set forth in the table in the
definition of Applicable Margin, on the average daily unused portion of the
Revolving Credit Commitment; provided that (i) the amount of Canadian
Dollar Loans shall not be considered usage of the Revolving Credit Commitment
for the purpose of calculating the commitment fee payable to the Lenders and
(ii) the amount of
Swingline Loans shall not be considered usage of the Revolving Credit
Commitment for purposes of calculating the commitment fee payable to the
Lenders (other than the Swingline Lender). The commitment fee shall be payable
in arrears on the last Business Day of each calendar quarter during the term of
this Agreement commencing March 31, 2005, and on the Maturity Date. Such
commitment fee shall be distributed by the Administrative Agent to the Lenders
(other than the Canadian Dollar Lender) pro rata in accordance
with the Lenders’ respective Commitment Percentages.

     (b) Administrative Agent’s and Other Fees. In order to compensate
the Administrative Agent for structuring and syndicating the Loans and for its
obligations hereunder, the Company and the Borrowers agree to pay to the
Administrative Agent and its affiliates, for their own account, the fees set
forth in the Fee Letter.

     SECTION 4.4 Manner of Payment.

     (a) Loans and Letters of Credit Denominated in Dollars. Each
payment by the Borrowers (other than the Canadian Borrower) on account of the
principal of or interest on any Loan or Letter of Credit denominated in Dollars
or of any fee, commission or other amounts (including the Reimbursement
Obligation with respect to any Letter of Credit denominated in Dollars) payable
to the Lenders under this Agreement or any Note (except as set forth in
Section 4.4(b)) shall be made in Dollars not later than 1:00 p.m. on the
date specified for payment under this Agreement to the Administrative Agent at
the Administrative Agent’s Office for the account

45

 

of the Lenders (other than as
set forth below) pro rata in accordance with their respective
Commitment Percentages as applicable, (except as specified below) in
immediately available funds and shall be made without any set-off, counterclaim
or deduction whatsoever. Any payment received after such time but before 2:00
p.m. on such day shall be deemed a payment on such date for the purposes of
Section 12.1, but for all other purposes shall be deemed to have been
made on the next succeeding Business Day. Any payment received after 2:00 p.m.
shall be deemed to have been made on the next succeeding Business Day for all
purposes. With respect to each Letter of Credit denominated in Dollars, each
payment to the Administrative Agent of the Issuing Lenders’ fees or L/C
Participants’ commissions shall be made in like manner, but for the account of
the applicable Issuing Lender or the L/C Participants, as the case may be.

     (b) Loans and Letters of Credit Denominated in Alternative
Currencies. Each payment by the Borrowers (other than the Canadian
Borrower) on account of the principal of or interest on the Loans denominated
in any Alternative Currency or any Letter of Credit denominated in an
Alternative Currency (including the Reimbursement Obligation with respect to
any Letter of Credit denominated in an Alternative Currency) shall be made in
such Alternative Currency not later than 1:00 p.m. (the time of the location of
the office of the Administrative Agent’s Correspondent) on the date specified
for payment under this Agreement to the Administrative Agent’s account with the
Administrative Agent’s Correspondent for the account of the Lenders (other than
as set forth below) pro rata in accordance with their respective
Commitment Percentages (except as set forth below) in immediately available
funds, and shall be made without any set-off, counterclaim or deduction
whatsoever.
Any payment received after such time but before 2:00 p.m. (the time of the
location of the office of the Administrative Agent’s Correspondent) on such day
shall be deemed a payment on such date for the purposes of Section 12.1,
but for all other purposes shall be deemed to have been made on the next
succeeding Business Day. Any payment received after 2:00 p.m. (the time of the
location of the office of the Administrative Agent’s Correspondent) shall be
deemed to have been made on the next succeeding Business Day for all purposes.
With respect to each Letter of Credit denominated in an Alternative Currency,
each payment to the Administrative Agent of the Issuing Lenders’ fees or L/C
Participants’ commissions shall be made in like manner, but for the account of
the applicable Issuing Lender or the L/C Participants, as the case may be.

     (c) Canadian Dollar Loans. Each payment by or on behalf of the
Canadian Borrower, on account of the principal of or interest on the Canadian
Dollar Loans shall be made in Canadian Dollars not later than 1:00 p.m.
(Toronto, Ontario time) on the date specified for payment under this Agreement
to the Administrative Agent’s account with the Canadian Dollar Lender for the
account of the Canadian Dollar Lender (other than as set forth below) in
immediately available funds, and shall be made without any set-off,
counterclaim or deduction whatsoever. Any payment received after such time but
before 2:00 p.m. (Toronto, Ontario time) on such day shall be deemed a payment
on such date for the purposes of Section 12.1, but for all other
purposes shall be deemed to have been made on the next succeeding Business Day.
Any payment received after 2:00 p.m. (Toronto, Ontario time) shall be deemed to
have been made on the next succeeding Business Day for all purposes.

     (d) General Payment Provisions. Upon receipt by the Administrative
Agent of each such payment, the Administrative Agent shall distribute to each
Lender at its address for notices

46

 

set forth herein its pro rata
share of such payment in accordance with such Lender’s Commitment Percentage
(except as specified below) and shall wire advice of the amount of such credit
to each Lender. Each payment to the Administrative Agent of the Issuing
Lenders’ fees or L/C Participants’ commissions shall be made in like manner,
but for the account of the applicable Issuing Lender or the L/C Participants,
as the case may be. Each payment to the Administrative Agent of Administrative
Agent’s fees or expenses shall be made for the account of the Administrative
Agent and any amount payable to any Lender under Sections 4.11,
4.12, 4.13 or 14.2 shall be paid to the Administrative
Agent for the account of the applicable Lender. Each payment to the
Administrative Agent with respect to Swingline Loans (including, without
limitation, the Swingline Lender’s fees or expenses) shall be made for the
account of the Swingline Lender. Each payment to the Administrative Agent with
respect to the Canadian Dollar Loans (including, without limitation, the
Canadian Dollar Lender’s fees or expenses) shall be made for the account of the
Canadian Dollar Lender. Subject to Section 4.1(b)(ii) if any payment
under this Agreement shall be specified to be made upon a day which is not a
Business Day, it shall be made on the next succeeding day which is a Business
Day and such extension of time shall in such case be included in computing any
interest if payable along with such payment.

     SECTION 4.5 Evidence of Indebtedness.

     (a) Extensions of Credit. The Extensions of Credit made by each
Lender shall be evidenced by one or more accounts or records maintained by such
Lender and by the Administrative Agent in the ordinary course of business. The
accounts or records maintained by the Administrative Agent and each Lender
shall be conclusive absent manifest error of the amount of the Extensions of
Credit made by the Lenders to the Borrowers and the interest and payments
thereon. Any failure to so record or any error in doing so shall not, however,
limit or otherwise affect the obligation of the Borrowers hereunder to pay any
amount owing with respect to the Obligations. In the event of any conflict
between the accounts and records maintained by any Lender and the accounts and
records of the Administrative Agent in respect of such matters, the accounts
and records of the Administrative Agent shall control in the absence of
manifest error. Upon the request of any Lender made through the Administrative
Agent, the Borrowers shall promptly execute and deliver to such Lender (through
the Administrative Agent) a Revolving Credit Note, a Canadian Dollar Note
and/or a Swingline Note, as applicable, which shall evidence such Lender’s
Revolving Credit Loans, Canadian Dollar Loans and/or Swingline Loans in
addition to such accounts or records. Each Lender may attach schedules to its
Notes and endorse thereon the date, amount and maturity of its Loans and
payments with respect thereto.

     (b) Participations. In addition to the accounts and records
referred to in subsection (a), each Lender and the Administrative Agent shall
maintain in accordance with its usual practice accounts or records evidencing
the purchases and sales by such Lender of participations in Canadian Dollar
Loans, Swingline Loans and Letters of Credit. In the event of any conflict
between the accounts and records maintained by the Administrative Agent and the
accounts and records of any Lender in respect of such matters, the accounts and
records of the Administrative Agent shall control in the absence of manifest
error.

47

 

     SECTION 4.6 Adjustments. If any Lender (a “Benefited
Lender”) shall, by exercising any right of setoff or counterclaim or
otherwise, obtain payment in respect of any principal of or interest on any of
its Loans or other obligations hereunder resulting in such Lender’s receiving
payment of a proportion of the aggregate amount of its Loans and accrued
interest thereon or other such obligations (other than pursuant to Sections
4.11, 4.12, 4.13 or 14.3 hereof) greater than its
pro rata share thereof as provided herein, then the Lender
receiving such greater proportion shall (a) notify the Administrative Agent of
such fact, and (b) purchase (for cash at face value) participations in the
Loans and such other obligations of the other Lenders, or make such other
adjustments as shall be equitable, so that the benefit of all such payments
shall be shared by the Lenders ratably in accordance with the aggregate amount
of principal of and accrued interest on their respective Loans and other
amounts owing them; provided that

               (i) if any such participations are purchased and all or any portion
of the payment giving rise thereto is recovered, such participations
shall be rescinded and the purchase price restored to the extent of such
recovery, without interest, and

               (ii) the provisions of this Section 4.6 shall not be
construed to apply to (x) any payment made by the Borrowers pursuant to
and in accordance with the express terms of this Agreement or (y) any
payment obtained by a Lender as consideration for the assignment of or
sale of a participation in any of its Loans or participations in Canadian
Dollar Loans, Swingline Loans and Letters of Credit to any assignee or
participant, other than to a Credit Party or any Subsidiary thereof (as
to which the provisions of this Section 4.6 shall apply).

Each Credit Party consents to the foregoing and agrees, to the extent it may
effectively do so under applicable law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against each
Credit Party rights of setoff and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of each Credit
Party in the amount of such participation.

     SECTION 4.7 Nature of Obligations of Lenders Regarding Extensions of
Credit; Assumption by the Administrative Agent. The obligations of the
Lenders under this Agreement to make, to issue or to participate in Loans and
Letters of Credit, as applicable, are several and are not joint or joint and
several. Unless the Administrative Agent shall have received notice from a
Lender prior to a proposed borrowing date that such Lender will not make
available to the Administrative Agent such Lender’s ratable portion of the
amount to be borrowed on such date (which notice shall not release such Lender
of its obligations hereunder), the Administrative Agent may assume that such
Lender has made such portion available to the Administrative Agent on the
proposed borrowing date in accordance with Sections 2.4(b), and the
Administrative Agent may, in reliance upon such assumption, make available to
the Borrowers on such date a corresponding amount. If such amount is made
available to the Administrative Agent on a date after such borrowing date, such
Lender shall pay to the Administrative Agent on demand an amount, until paid,
equal to (a) with respect to any Loan denominated in Dollars the product of (i)
the amount not made
available by such Lender in accordance with the terms
hereof, times (ii) the daily average Federal Funds Rate during such
period as determined by the Administrative Agent, times (iii) a fraction
the numerator of which is the number of days that elapse from and including
such borrowing date to the date on which such amount not made

48

 

available by such
Lender in accordance with the terms hereof shall have become immediately
available to the Administrative Agent and the denominator of which is 360 and
(b) with respect to any Loan denominated in an Alternative Currency, the amount
not made available by such Lender in accordance with the terms hereof and
interest thereon at a rate per annum equal to the Administrative Agent’s
aggregate marginal cost (including the cost of maintaining any required
reserves or deposit insurance and of any fees, penalties, overdraft charges or
other costs or expenses incurred by the Administrative Agent as a result of the
failure to deliver funds hereunder) of carrying such amount. A certificate of
the Administrative Agent with respect to any amounts owing under this
Section 4.7 shall be conclusive, absent manifest error. If such
Lender’s Commitment Percentage of such borrowing is not made available to the
Administrative Agent by such Lender within three (3) Business Days after such
borrowing date, the Administrative Agent shall be entitled to recover such
amount made available by the Administrative Agent with interest thereon at the
rate per annum applicable to Base Rate Loans hereunder, on demand, from the
Borrowers. The failure of any Lender to make available its Commitment
Percentage of any Loan requested by the Borrowers shall not relieve it or any
other
Lender of its obligation, if any, hereunder to make its Commitment Percentage
of such Loan available on the borrowing date, but no Lender shall be
responsible for the failure of any other Lender to make its Commitment
Percentage of such Loan available on the borrowing date. Notwithstanding
anything set forth herein to the contrary, any Lender that fails to make
available its Commitment Percentage of any Loan shall not (a) have any voting
or consent rights under or with respect to any Loan Document (except that the
Commitment of such Lender may not be increased or extended without the consent
of such Lender) or (b) constitute a “Lender” (or be included in the calculation
of Required Lenders hereunder) for any voting or consent rights under or with
respect to any Loan Document.

     SECTION 4.8 Redenomination of Alternative Currency Loans.

     (a) Conversion to the Base Rate. If any Alternative Currency Loan
is required to bear interest based at the Base Rate rather than the LIBOR Rate
pursuant to Section 4.1(c), Section 4.10 or any other applicable
provision hereof, such Loan shall be funded in Dollars in an amount equal to
the Dollar Amount of such Alternative Currency Loan, all subject to the
provisions of Section 2.5(b). The Borrowers shall reimburse the Lenders
upon any such conversion for any amounts required to be paid under Section
4.11.

     (b) Redenomination of Loans. Subject to Section 1.9 hereof,
any Loan to be denominated in the currency of the applicable Participating
Member State shall be made in the euro.

     (c) Redenomination of Obligations. Subject to Section 1.9
hereof, any obligation of any party under this Agreement or any other Loan
Document which has been denominated in the currency of a Participating Member
State shall be redenominated into the euro.

     (d) Further Assurances. The terms and provisions of this Agreement
will be subject to such reasonable changes of construction as determined by the
Administrative Agent in consultation with the Company to reflect the
implementation of the EMU in any Participating Member State or any market
conventions relating to the fixing and/or calculation of interest

49

 

being changed
or replaced and to reflect market practice at that time, and subject thereto,
to put the Administrative Agent, the Lenders and the Borrowers in the same
position, so far as possible, that they would have been if such implementation
had not occurred.

     SECTION 4.9. Regulatory Limitation. In the event, as a result of
increases in the value of Alternative Currencies against the Dollar or for any
other reason, the obligation of any of the Lenders to make Loans (taking into
account the Dollar Amount of the Obligations and all other indebtedness
required to be aggregated under 12 U.S.C.A. §84, as amended, the regulations
promulgated thereunder and any other Applicable Law) is determined by such
Lender to exceed its then applicable legal lending limit under 12 U.S.C.A. §84,
as amended, and the regulations promulgated thereunder, or any other Applicable
Law, the amount of additional Extensions of Credit such Lender shall be
obligated to make or
issue or participate in hereunder shall immediately be reduced to the maximum
amount which such Lender may legally advance (as determined by such Lender),
the obligation of each of the remaining Lenders hereunder shall be
proportionately reduced, based on their applicable Commitment Percentages and,
to the extent necessary under such laws and regulations (as determined by each
of the Lenders, with respect to the applicability of such laws and regulations
to itself), and the Borrowers shall reduce, or cause to be reduced, complying
to the extent practicable with the remaining provisions hereof, the Obligations
outstanding hereunder by an amount sufficient to comply with such maximum
amounts.

     SECTION 4.10 Changed Circumstances.

     (a) Circumstances Affecting LIBOR Rate, Alternative Currency
Availability and Canadian Dollar Availability. If with respect to any
Interest Period for any LIBOR Rate Loan the Administrative Agent or any Lender
(after consultation with the Administrative Agent) shall determine that (i) by
reason of circumstances affecting the foreign exchange and interbank markets
generally, deposits in eurodollars or an Alternative Currency in the applicable
amounts are not being quoted via Telerate Page Screen 3750 (or any replacement
pages on that service) or the applicable Reuters Screen Page or offered to the
Administrative Agent or such Lender for such Interest Period, (ii) a
fundamental change has occurred in the foreign exchange or interbank markets
with respect to any Alternative Currency (including, without limitation,
changes in national or international financial, political or economic
conditions or currency exchange rates or exchange controls), (iii) it has
become otherwise materially impractical for the Administrative Agent or the
Lenders to make such Loan in an Alternative Currency, (iv) a fundamental change
has occurred in the foreign exchange or interbank markets with respect to
Canadian Dollars (including, without limitation, changes in national or
international financial, political or economic conditions or currency exchange
rates or exchange controls) or (v) it has become otherwise materially
impractical for the Canadian Dollar Lender to make any Canadian Dollar Loans,
then the Administrative Agent shall forthwith give notice thereof to the
Borrowers. Thereafter, until the Administrative Agent notifies the Borrowers
that such circumstances no longer exist, the obligation of the Lenders or the
Canadian Dollar Lender, as applicable, to make LIBOR Rate Loans or Alternative
Currency Loans (including Canadian Dollar Loans), as applicable, and the right
of the Borrowers to convert any Loan to or continue any Loan as a LIBOR Rate
Loan, an Alternative Currency Loan (including a Canadian Dollar Loan), as
applicable, shall be suspended, and the Borrowers shall repay in full (or cause
to be repaid in

50

 

full) the then outstanding principal amount of each such LIBOR
Rate Loan, Alternative Currency Loan or Canadian Dollar Loan, as applicable,
together with accrued interest thereon, on the last day of the then current
Interest Period applicable to such LIBOR Rate Loan, Alternative Currency Loan
or Canadian Dollar Loan, as applicable, or convert the then outstanding
principal amount of each such LIBOR Rate Loan, Alternative Currency Loan or
Canadian Dollar Loan, as applicable, to a Base Rate Loan in Dollars as of the
last day of such Interest Period; provided that if a Borrower elects to
make such conversion, such Borrower shall pay to the Administrative Agent and
the Lenders any and all costs, fees and other expenses incurred by the
Administrative Agent and the Lenders in effecting such conversion.

     (b) Laws Affecting LIBOR Rate, Alternative Currency and Canadian Dollar
Availability. If, after the date hereof, the introduction of, or any
change in, any Applicable Law or any change in the interpretation or
administration thereof by any Governmental Authority, central bank or
comparable agency charged with the interpretation or administration thereof, or
compliance by any of the Lenders (or any of their respective Lending Offices)
with any request or directive (whether or not having the force of law) of any
such Governmental Authority, central bank or comparable agency, first made
after the date hereof, shall make it unlawful or impossible for any of the
Lenders (or any of their respective Lending Offices) to honor its obligations
hereunder to make or maintain any LIBOR Rate Loan, any Alternative Currency
Loan or Canadian Dollar Loans, such Lender shall promptly give notice thereof
to the Administrative Agent and the Administrative Agent shall promptly give
notice to the Borrowers and the other Lenders. Thereafter, until the
Administrative Agent notifies the Borrowers that such circumstances no longer
exist, (i) the obligations of the Lenders or the Canadian Dollar Lender to make
LIBOR Rate Loans or Alternative Currency Loans (including Canadian Dollar
Loans), as applicable, and the right of the Borrowers to convert any Loan or
continue any Loan as a LIBOR Rate Loan, an Alternative Currency Loan (including
a Canadian Dollar Loan), as applicable, shall be suspended and thereafter the
Borrowers may select only Base Rate Loans hereunder, and (ii) if any of the
Lenders may not lawfully continue to maintain a LIBOR Rate Loan or an
Alternative Currency Loan, as applicable, to the end of the then current
Interest Period applicable thereto as a LIBOR Rate Loan or Alternative Currency
Loan, as applicable, the applicable LIBOR Rate Loan or an Alternative Currency
Loan, as applicable, shall immediately be converted to a Base Rate Loan in
Dollars for the remainder of such Interest Period and (iii) if the Canadian
Dollar Lender may not lawfully continue to maintain Canadian Dollar Loans, the
applicable Canadian Dollar Loans shall immediately be repaid in full (together
with accrued interest thereon); provided that if a Borrower elects to
make such conversion, such Borrower shall pay to the Administrative Agent and
the Lenders any and all costs, fees and other expenses incurred by the
Administrative Agent and the Lenders in effecting such conversion.

     SECTION 4.11 Indemnity. Each Borrower hereby indemnifies each of
the Lenders against any loss or expense (including, without limitation, any
foreign exchange costs) which may arise or be attributable to each Lender’s
obtaining, liquidating or employing deposits or other funds acquired to effect,
fund or maintain any Revolving Credit Loan (a) as a consequence of any failure
by any Borrower to make any payment when due of any amount due hereunder in
connection with a LIBOR Rate Loan or a Canadian Dollar Loan, (b) due to any
failure of any Borrower to borrow, continue or convert on a date specified
therefor in a Notice of Borrowing or Notice of Conversion/Continuation or (c)
due to any payment, prepayment or conversion of any

51

 

LIBOR Rate Loan or Canadian
Dollar Loan on a date other than the last day of the Interest Period therefor.
The amount of such loss or expense shall be determined, in the applicable
Lender’s sole discretion, based upon the assumption that such Lender funded its
Commitment Percentage of the LIBOR Rate Loans in the London interbank market
and using any reasonable attribution or averaging methods which such Lender
deems appropriate and practical. A certificate of such Lender setting forth
the basis for determining such amount or amounts necessary to compensate such
Lender shall be forwarded to the U.S. Borrower through the Administrative Agent
and shall be conclusively presumed to be correct save for manifest error.

     SECTION
4.12 Increased Costs.

     (a) Increased Costs Generally. If any Change in Law shall:

               (i) impose, modify or deem applicable any reserve, special deposit,
compulsory loan, insurance charge or similar requirement against assets
of, deposits with or for the account of, or advances, loans or other
credit extended or participated in by, any Lender (except any reserve
requirement reflected in the LIBOR Rate), the Canadian Dollar Lender or
any Issuing Lender (or any of their respective Lending Offices);

               (ii) subject any Lender, the Canadian Dollar Lender or any Issuing
Lender to any tax of any kind whatsoever with respect to this Agreement,
any Canadian Dollar Loan, any Letter of Credit, any participation in a
Canadian Dollar Loan or a Letter of Credit or any LIBOR Rate Loan made by
it, or change the basis of taxation of payments to such Lender, the
Canadian Dollar Lender or any Issuing Lender in respect thereof (except
for Indemnified Taxes or Other Taxes covered by Section 4.13 and
the imposition of, or any change in the rate of any Excluded Tax payable
by such Lender, the Canadian Dollar Lender or such Issuing Lender); or

               (iii) impose on any Lender, the Canadian Dollar Lender or any
Issuing Lender (or any of their respective Lending Offices) or the London
interbank market any other condition, cost or expense affecting this
Agreement, any Canadian Dollar Loan, any Letter of Credit, any
participation in a Canadian Dollar Loan or a Letter of Credit or any
LIBOR Rate Loan made by it;

and the result of any of the foregoing shall be to increase the cost to such
Lender, the Canadian Dollar Lender or such Issuing Lender of making, converting
into or maintaining any LIBOR Rate Loan denominated in Dollars, LIBOR Rate Loan
denominated in an Alternative Currency or Canadian Dollar Loan (or of
maintaining its obligation to make any such Loan), or to increase the cost to
such Lender, the Canadian Dollar Lender or such Issuing Lender of participating
in, issuing or maintaining any Canadian Dollar Loan or Letter of Credit (or of
maintaining its obligation to participate in or to issue any Canadian Dollar
Loan or Letter of Credit), or to reduce the amount of any sum received or
receivable by such Lender, the Canadian Dollar Lender or such Issuing Lender
hereunder (whether of principal, interest or any other amount) then, upon
request of such Lender, the Canadian Dollar Lender or such Issuing Lender, the
Borrowers shall promptly pay to any such Lender, the Canadian Dollar Lender or
such Issuing Lender, as the case may be, such additional amount or amounts as
will compensate such Lender, the Canadian

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Dollar Lender or such Issuing Lender,
as the case may be, for such additional costs incurred or reduction suffered.

     (b) Capital Requirements. If any Lender, the Canadian Dollar
Lender or any Issuing Lender determines that any Change in Law affecting such
Lender, the Canadian Dollar Lender or such Issuing Lender or any lending office
of such Lender, the Canadian Dollar Lender or such Lender’s, the Canadian
Dollar Lender’s or such Issuing Lender’s holding company, if any, regarding
capital requirements has or would have the effect of reducing the rate of
return on such Lender’s, the Canadian Dollar Lender’s or such Issuing Lender’s
capital or on the capital of
such Lender’s, the Canadian Dollar Lender’s or such Issuing Lender’s
holding company, if any, as a consequence of this Agreement, the Commitments of
such Lender, the Canadian Lender or such Issuing Lender or the Loans made by,
or participations in Letters of Credit held by, such Lender, the Canadian
Dollar Lender or such Issuing Lender or the Letters of Credit issued by such
Issuing Lender, to a level below that which such Lender, the Canadian Dollar or
such Issuing Lender or such Lender’s, the Canadian Dollar Lender’s or such
Issuing Lender’s holding company could have achieved but for such Change in Law
(taking into consideration such Lender’s, the Canadian Dollar Lender’s or such
Issuing Lender’s policies and the policies of such Lender’s, the Canadian
Dollar Lender’s or such Issuing Lender’s holding company with respect to
capital adequacy), then from time to time the Borrowers shall promptly pay to
such Lender, the Canadian Dollar Lender or such Issuing Lender, as the case may
be, such additional amount or amounts as will compensate such Lender, the
Canadian Dollar Lender or such Issuing Lender or such Lender’s, the Canadian
Dollar Lender’s or such Issuing Lender’s holding company for any such reduction
suffered.

     (c) Certificates for Reimbursement. A certificate of a Lender, the
Canadian Dollar Lender or the applicable Issuing Lender setting forth the
amount or amounts necessary to compensate such Lender, the Canadian Dollar
Lender or such Issuing Lender or its holding company, as the case may be, as
specified in subsection (a) or (b) of this Section 4.12(c) and delivered
to the Borrowers shall be conclusive absent manifest error. The Borrowers
shall pay such Lender, the Canadian Dollar Lender or such Issuing Lender, as
the case may be, the amount shown as due on any such certificate within ten
(10) days after receipt thereof.

     (d) Exchange Indemnification and Increased Costs. The Borrowers
shall, upon demand from the Administrative Agent, pay to the Administrative
Agent or any applicable Lender, the amount of (i) any customary loss or cost
or increased cost incurred by the Administrative Agent or any applicable
Lender, (ii) any reduction in any amount payable to or in the effective return
on the capital to the Administrative Agent or any applicable Lender, (iii) any
interest or any other return, including principal, foregone by the
Administrative Agent or any applicable Lender as a result of the introduction
of, change over to or operation of the euro, or (iv) any currency exchange
loss, that Administrative Agent or any Lender sustains as a result of any
payment being made by a Borrower in a currency other than that originally
extended to such Borrower or as a result of any other currency exchange loss
incurred by the Administrative Agent or any applicable Lender under this
Agreement. A certificate of the Administrative Agent setting forth the basis
for determining such additional amount or amounts necessary to compensate the
Administrative Agent or the applicable Lender shall be conclusively presumed to
be correct save for manifest error.

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     (e) Delay in Requests. Failure or delay on the part of any Lender,
the Canadian Dollar Lender or the applicable Issuing Lender to demand
compensation pursuant to this Section 4.12 shall not constitute a waiver
of such Lender’s, the Canadian Dollar Lender’s or such Issuing Lender’s right
to demand such compensation; provided that the Borrowers shall not be
required to compensate a Lender, the Canadian Dollar Lender or such Issuing
Lender pursuant to this Section 4.12 for any increased costs incurred or
reductions suffered more than six (6) months prior to the date that such
Lender, the Canadian Dollar Lender or such Issuing Lender, as the case may be,
notifies the Borrowers of the Change in Law giving rise to such increased costs
or reductions and of such Lender’s, the Canadian
Dollar Lender’s or such Issuing Lender’s intention to claim compensation
therefor (except that, if the Change in Law giving rise to such increased costs
or reductions is retroactive, then the nine-month period referred to above
shall be extended to include the period of retroactive effect thereof).

     SECTION 4.13 Taxes.

     (a) Payments Free of Taxes. Except as otherwise required by this
Agreement, any and all payments by or on account of any obligation of the
Borrowers hereunder or under any other Loan Document shall be made free and
clear of and without reduction or withholding for any Indemnified Taxes or
Other Taxes; provided that if any Borrower shall be required by
Applicable Law to deduct any Indemnified Taxes (including any Other Taxes) from
such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to
additional sums payable under this Section 4.13) the Administrative
Agent, the Lenders or the Issuing Lenders, as the case may be, receives an
amount equal to the sum it would have received had no such deductions been
made, (ii) such Borrower shall make such deductions and (iii) such Borrower
shall timely pay the full amount deducted to the relevant Governmental
Authority in accordance with Applicable Law.

     (b) Payment of Other Taxes by the Borrowers. Without limiting the
provisions of subsection (a) above, the Borrowers shall timely pay any Other
Taxes to the relevant Governmental Authority in accordance with Applicable Law.

     (c) Indemnification by the Borrowers. The Borrowers shall indemnify
the Administrative Agent, each Lender and each Issuing Lender, within ten (10)
days after demand therefor, for the full amount of any Indemnified Taxes
(including Indemnified Taxes imposed or asserted on or attributable to amounts
payable under this Section 4.13) paid by the Administrative Agent, such
Lender or such Issuing Lender, as the case may be, and any penalties, interest
and reasonable expenses arising therefrom or with respect thereto, whether or
not such Indemnified Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority. A certificate as to the amount of such
payment or liability delivered to the U.S. Borrower by a Lender or the
applicable Issuing Lender (with a copy to the Administrative Agent), or by the
Administrative Agent on its own behalf or on behalf of a Lender or the
applicable Issuing Lender executed by an officer of the party providing the
certificate, shall be conclusive absent manifest error.

     (d) Evidence of Payments. As soon as practicable after any payment
of Indemnified Taxes or Other Taxes by any Borrower to a Governmental
Authority, such Borrower shall deliver to the Administrative Agent the original
or a certified copy of a receipt issued by such

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Governmental Authority
evidencing such payment, a copy of the return reporting such payment or other
evidence of such payment reasonably satisfactory to the Administrative Agent.

     (e) Status of Lenders. Any Foreign Lender that is entitled to an
exemption from or reduction of withholding tax under the law of the
jurisdiction in which a Borrower is
resident for tax purposes, or any treaty to which such jurisdiction is a
party, with respect to payments hereunder or under any other Loan Document
shall deliver to the applicable Borrower (with a copy to the Administrative
Agent), on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement and at the time or times prescribed by Applicable Law or
reasonably requested by the applicable Borrower or the Administrative Agent,
such properly completed and executed documentation prescribed by Applicable Law
as will permit such payments to be made without withholding or at a reduced
rate of withholding. In addition, any Lender, if requested by applicable
Borrower or the Administrative Agent, shall deliver such other documentation
prescribed by Applicable Law or reasonably requested by the applicable Borrower
or the Administrative Agent as will enable the applicable Borrower or the
Administrative Agent to determine whether or not such Lender is subject to
backup withholding or information reporting requirements. Without limiting the
generality of the foregoing, in the event that applicable Borrower is a
resident for tax purposes in the United States, any Foreign Lender shall
deliver to the applicable Borrower and the Administrative Agent (in such number
of copies as shall be requested by the recipient) on or prior to the date on
which such Foreign Lender becomes a Lender under this Agreement (and from time
to time thereafter upon the request of the applicable Borrower or the
Administrative Agent, but only if such Foreign Lender is legally entitled to do
so), whichever of the following is applicable:

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

               (ii) duly completed copies of Internal Revenue Service Form W-8ECI,

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

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

     Without limiting the obligations of the Lenders set forth above regarding
delivery of certain forms and documents to establish each Lender’s status for
U.S. withholding tax purposes, each Lender agrees promptly to deliver to the
Administrative Agent and the U.S. Borrower, on

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behalf of itself and the Foreign
Borrowers, as the Administrative Agent or the U.S. Borrower, on
behalf of
itself and the Foreign Borrowers, shall reasonably request, on or prior to the
Closing Date, and in a timely fashion thereafter (including, without
limitation, on or prior to the date on which such Foreign Lender becomes a
Lender under this Agreement and at the time or times prescribed by Applicable
Law), such other documents and forms required by any relevant taxing
authorities under the Applicable Laws of any other jurisdiction, duly
executed and completed by such Lender, as are required under such Applicable
Laws to confirm such Lender’s entitlement to any available exemption from, or
reduction of, applicable withholding taxes in respect of all payments to be
made to such Lender by the Borrowers pursuant to this Agreement or otherwise to
establish such Lender’s status for withholding tax purposes in such other
jurisdiction. Each Lender shall promptly (i) notify the Administrative Agent
and the Borrower of any change in circumstances which would modify or render
invalid any such claimed exemption or reduction, and (ii) take such steps as
shall not be materially disadvantageous to it, in the reasonable judgment of
such Lender, and as may be reasonably necessary (including the re-designation
of its Lending Office) to avoid any requirement of Applicable Laws of any such
jurisdiction that any Borrower make any deduction or withholding for taxes from
amounts payable to such Lender. Additionally, each Borrower shall promptly
deliver to the Administrative Agent or any Lender, as the Administrative Agent
or such Lender shall reasonably request, on or prior to the Closing Date, and
in a timely fashion thereafter, such documents and forms required by any
relevant taxing authorities under the Applicable Laws of any jurisdiction, duly
executed and completed by such Borrower, as are required to be furnished by
such Lender or the Administrative Agent under such Applicable Laws in
connection with any payment by the Administrative Agent or any Lender of Taxes
or Other Taxes, or otherwise in connection with the Loan Documents, with
respect to such jurisdiction.

     (f) Treatment of Certain Refunds. If the Administrative Agent, a
Lender or the Issuing Lender determines, in its sole discretion, that it has
received a refund of any Taxes or Other Taxes as to which it has been
indemnified by the Borrowers or with respect to which the Borrowers have paid
additional amounts pursuant to this Section 4.13, it shall pay to the
Borrowers an amount equal to such refund (but only to the extent of indemnity
payments made, or additional amounts paid, by the Borrowers under this
Section 4.13 with respect to the Taxes or Other Taxes giving rise to
such refund), net of all out-of-pocket expenses of the Administrative Agent,
such Lender or such Issuing Lender, as the case may be, and without interest
(other than any interest paid by the relevant Governmental Authority with
respect to such refund); provided that the Borrowers, upon the request
of the Administrative Agent, such Lender or such Issuing Lender, agree to repay
the amount paid over to the Borrowers (plus any penalties, interest or other
charges imposed by the relevant Governmental Authority) to the Administrative
Agent, such Lender or such Issuing Lender in the event the Administrative
Agent, such Lender or such Issuing Lender is required to repay such refund to
such Governmental Authority. This subsection shall not be construed to require
the Administrative Agent, any Lender or any Issuing Lender to make available
its tax returns (or any other information relating to its taxes which it deems
confidential) to the Borrowers or any other Person.

     (g) Survival. Without prejudice to the survival of any other
agreement of the Borrowers hereunder, the agreements and obligations of the
Borrowers contained in this Section 4.13 shall survive the payment in
full of the Obligations and the termination of the Commitments.

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     SECTION 4.14 Mitigation Obligations; Replacement of Lenders.

     (a) Designation of a Different Lending Office. If any Lender
requests compensation under Section 4.12, or requires the Borrowers to
pay any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 4.13, then such Lender shall
use reasonable efforts to designate a different lending office for funding or
booking its Loans hereunder or to assign its rights and obligations hereunder
to another of its offices, branches or affiliates, if, in the judgment of such
Lender, such designation or assignment (i) would eliminate or reduce amounts
payable pursuant to Section 4.12 or Section 4.13, as the case may
be, in the future and (ii) would not subject such Lender to any unreimbursed
cost or expense and would not otherwise be disadvantageous to such Lender. The
Borrowers hereby agree to pay all customary and reasonable out-of-pocket costs
and expenses incurred by any Lender in connection with any such designation or
assignment.

     (b) Replacement of Lenders. If any Lender (or Participant)
requests compensation under Section 4.12, or if the Borrowers are
required to suspend requests for types or amounts of loans or pay any
additional amount to any Lender (or Participant) or any Governmental Authority
for the account of any Lender pursuant to Section 4.9, 4.10,
or 4.13, or if any Lender defaults in its obligation to fund Loans
hereunder, then the Borrowers may, at their sole expense and effort, upon
notice to such Lender and the Administrative Agent, require such Lender (or
Participant) to assign and delegate, without recourse (in accordance with and
subject to the restrictions contained in, and consents required by, Section
14.11), all of its interests, rights and obligations under this Agreement
and the related Loan Documents to an Eligible Assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that:

               (i) the Borrowers shall have paid to the Administrative Agent the
assignment fee specified in Section 14.11;

               (ii) such Lender shall have received payment of an amount equal to
the outstanding principal of its Loans and participations in Letters of
Credit, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder and under the other Loan Documents (including any
amounts under Section 4.11) from the assignee (to the extent of
such outstanding principal and accrued interest and fees) or the
Borrowers (in the case of all other amounts);

               (iii) in the case of any such assignment resulting from a claim for
compensation under Section 4.12 or payments required to be made
pursuant to Section 4.13, such assignment will result in a
reduction in such compensation or payments thereafter;

               (iv) such assignment does not conflict with Applicable Law; and

               (v) the Canadian Dollar Lender may not be replaced without the prior
consent of the Administrative Agent.

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

     SECTION 4.15 Redenomination of Canadian Dollar Loans. If any
Canadian Dollar Loan is required to bear interest based at the Base Rate rather
than the Canadian Base Rate pursuant to any applicable provision hereof, such
Loan shall be funded in Dollars in an amount equal to the Dollar Amount of such
Canadian Dollar Loan, all subject to the provisions of Section 2.5(b).
The U.S. Borrower and the Canadian Borrower shall reimburse the Lenders upon
any such conversion for any amounts required to be paid under Section
4.11.

     SECTION 4.16 U.S. Borrower as Agent for the Foreign Borrowers.
Each Foreign Borrower hereby irrevocably appoints and authorizes the U.S.
Borrower (a) to provide the Administrative Agent with all notices with respect
to Extensions of Credit obtained for the benefit of such Borrower and all other
notices and instructions under this Agreement, (b) to take such action on
behalf of the Borrowers as the U.S. Borrower deems appropriate on its behalf to
obtain Extensions of Credit and to exercise such other powers as are reasonably
incidental thereto to carry out the purposes of this Agreement and (c) to act
as its agent for service of process and notices required to be delivered under
this Agreement or the other Loan Documents, it being understood and agreed that
receipt by the U.S. Borrower of any summons, notice or other similar item shall
be deemed effective receipt by the Borrowers and their Subsidiaries.

     SECTION 4.17. Rounding and Other Reasonable Changes. Subject to
Section 1.9 hereof, without prejudice and in addition to any method of
conversion or rounding prescribed by any EMU Legislation and without prejudice
to the respective obligations of the Borrowers to the Administrative Agent and
the Lenders and the Administrative Agent and the Lenders to the Borrowers under
or pursuant to this Agreement, except as expressly provided in this Agreement,
each provision of this Agreement, including, without limitation, the right to
combine currencies to effect a set-off, shall be subject to such reasonable
changes of interpretation as the Administrative Agent in consultation with the
Company may from time to time specify to be necessary or appropriate to reflect
the introduction of or change over to the euro in Participating Member States.

ARTICLE V

CLOSING; CONDITIONS OF CLOSING AND BORROWING

     SECTION 5.1 Closing. The closing shall take place at the offices
of Kennedy Covington Lobdell & Hickman, L.L.P. at 10:00 a.m. on December 23,
2004, or on such other place, date and time as the parties hereto shall
mutually agree.

     SECTION
5.2 Conditions to Closing and Initial Extensions of Credit.
The obligation of the Lenders to close this Agreement and to make the
initial Loan or issue or participate in the initial Letter of Credit, if any,
is subject to the satisfaction or waiver in accordance with Section 14.2 of
each of the following conditions:

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     (a) Executed Loan Documents. This Agreement, a Revolving Credit
Note in favor of each Lender requesting a Revolving Credit Note, a Canadian
Dollar Note in favor of the Canadian Dollar Lender (if requested thereby), a
Swingline Note in favor of the Swingline Lender (if requested thereby), the
Subsidiary Guaranty Agreement, together with any other applicable Loan
Documents, shall have been duly authorized, executed and delivered to the
Administrative Agent by the parties thereto, shall be in full force and effect
and no Default or Event of Default shall exist hereunder or thereunder.

     (b) Closing Certificates; Etc. The Administrative Agent shall have
received each of the following in form and substance reasonably satisfactory to
the Administrative Agent:

               (i) Officer’s Certificate of the Company and the Borrowers. A
certificate of the Company and Borrowers signed by a Responsible Officer
thereof, to the effect that all representations and warranties of the Credit
Parties contained in this Agreement and the other Loan Documents are true,
correct and complete in all material respects as of the Closing Date;
provided that any representation and warranty that is qualified by
materiality or by reference to Material Adverse Effect shall be true, correct
and complete in all respects as of the Closing Date; that none of the Credit
Parties are in violation of any of the covenants contained in this Agreement
and the other Loan Documents; that, after giving effect to the transactions
contemplated by this Agreement, no Default or Event of Default has occurred and
is continuing; and that each of the Credit Parties, as applicable, has
satisfied each of the conditions to be satisfied thereby as set forth in
Section 5.2 and Section 5.3.

               (ii) Certificate of Responsible Officer of each Credit Party. A
certificate of each Credit Party signed by a Responsible Officer thereof
certifying as to the incumbency and genuineness of the signature of each
officer of such Credit Party executing Loan Documents to which it is a party
and certifying that attached thereto is a true, correct and complete copy of
(A) the articles of incorporation (or equivalent documentation) of such Credit
Party and all amendments thereto, certified as of a recent date by the
appropriate Governmental Authority in its jurisdiction of incorporation or
formation, (B) the bylaws (or equivalent documentation) of such Credit Party as
in effect on the Closing Date, (C) resolutions duly adopted by the board of
directors (or equivalent governing body) of such Credit Party authorizing the
transactions contemplated hereunder and the execution, delivery and performance
of this Agreement and the other Loan Documents to which it is a party, or, in
the event resolutions are not applicable under the laws of the relevant
jurisdiction of formation or any Credit Party, the corresponding evidence of
corporate, company, partnership or other applicable action of such Credit Party
and (D) each certificate required to be delivered pursuant to Section
5.2(b)(iii).

               (iii) Certificates of Good Standing. Certificates as of a recent
date of the good standing of each Credit Party under the laws of its
jurisdiction of organization or the equivalent, if any, in any foreign
jurisdiction of organization and, to the extent requested by the
Administrative Agent, each other jurisdiction where such Credit Party is
qualified to do business and, to the extent available, a certificate of the
relevant taxing authorities of such jurisdictions certifying that such Credit
Party has filed required tax returns and owes no delinquent taxes.

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               (iv) Opinions of Counsel. Opinions of counsel to the Credit
Parties addressed to the Administrative Agent and the Lenders with respect to
the Credit Parties, the Loan Documents and such other matters as the Lenders
shall request, each in form and substance reasonably satisfactory to the
Administrative Agent (including, without limitation, opinions of foreign
counsel to the Credit Parties).

               (v) Tax Forms. Copies of the United States Internal Revenue
Service or other forms required by Section 4.13(e).

               (vi) Liability Insurance. The Administrative Agent shall have
received certificates of property, hazard, business interruption and liability
insurance, evidence of payment of all insurance premiums for the current policy
year of each, and, if requested by the Administrative Agent, copies (certified
by a Responsible Officer) of insurance policies in form and substance
reasonably satisfactory to the Administrative Agent.

     (c) Consents; Defaults.

               (i) Governmental and Third Party Approvals. The Credit Parties
shall have received all material governmental, shareholder and third party
consents and approvals necessary in connection with the transactions
contemplated by this Agreement and the other Loan Documents and all such
consents and approvals shall be in full force and effect.

               (ii) No Injunction, Etc. No action, proceeding, investigation,
regulation or legislation shall have been instituted, threatened or proposed
before any Governmental Authority to enjoin, restrain, or prohibit, or to
obtain substantial damages in respect of, or which is related to or arises out
of this Agreement or the other Loan Documents or the consummation of the
transactions contemplated hereby or thereby.

     (d) Financial Matters.

               (i) Financial Statements. The Administrative Agent and the Lenders
shall have received the unaudited consolidated financial statements of the
Company and its Subsidiaries for the interim quarterly period ended at least
forty-five (45) days prior to the Closing Date, in form and substance
reasonably satisfactory to the Administrative Agent and the Lenders and
prepared in accordance with GAAP (and, with respect to all audited financial
statements, to be audited by PricewaterhouseCoopers, LLP or another independent
certified public accounting firm reasonably satisfactory to the Administrative
Agent):

               (ii) Financial Projections. The Administrative Agent shall have
received financial projections with respect to the Company and its Subsidiaries
prepared by a Responsible Officer of the Company, in form reasonably
satisfactory to the Administrative
Agent, of balance sheets, income statements and cash flow statements on an
annual basis for the first four years following the Closing Date.

               (iii) Financial Condition Certificate. The Company and the U.S.
Borrowers, on behalf of itself and the other Borrowers, shall have delivered to
the Administrative Agent a

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certificate, in form and substance reasonably
satisfactory to the Administrative Agent, and certified as accurate by a
Responsible Officer of each of the Company and the U.S. Borrower, that (A) the
Company and its Subsidiaries, taken as a whole, are Solvent and (B) attached
thereto are calculations evidencing compliance on a pro forma
basis with the covenants contained in Article IX hereof.

               (iv) Payment at Closing; Fee Letters. The Company and the Borrowers
shall have paid to the Administrative Agent and the Lenders the fees set forth
or referenced in Section 4.3 and any other accrued and unpaid fees or
commissions due hereunder (including, without limitation, reasonable legal fees
and expenses of counsel to the Administrative Agent (which shall be limited to
one counsel per jurisdiction of formation of the Borrowers)) and to any other
Person such amount as may be due thereto in connection with the transactions
contemplated hereby, including all taxes, fees and other charges in connection
with the execution, delivery, recording, filing and registration of any of the
Loan Documents.

     (e) Miscellaneous.

               (i) Notice of Account Designation. The Administrative Agent shall
have received Notice of Account Designation from the U.S. Borrower specifying
the account or accounts to which the proceeds of any Loans made after the
Closing Date are to be disbursed.

               [(ii) Due Diligence. The Administrative Agent shall have
completed, to its satisfaction, all legal and other due diligence with respect
to the business, assets, liabilities, operations and condition (financial or
otherwise) of the Company and its Subsidiaries in scope and determination
satisfactory to the Administrative Agent in its sole discretion. In connection
therewith, the Administrative Agent may request the results of a Lien search
(including a search as to judgments, pending litigation and tax matters), in
form and substance reasonably satisfactory thereto, made against the Credit
Parties under the Uniform Commercial Code (or applicable judicial docket) as in
effect in any state (or foreign jurisdiction) or comparable legislation in
other jurisdictions in which any of the assets of such Credit Party are
located, indicating among other things that its assets are free and clear of
any Lien except for Permitted Liens.]

               (iii) Existing Facility. The Existing Facility (other than the
Existing Letters of Credit) shall be repaid in full and terminated and all
collateral security therefor shall be irrevocably and unconditionally released
(or satisfactory arrangements made therefor), and the Administrative Agent
shall have received a pay-off letter in form and substance reasonably
satisfactory to it evidencing such repayment, termination, reconveyance and
release.

               [(iv) Other Documents. All opinions, certificates and other
instruments and all proceedings in connection with the transactions
contemplated by this
Agreement shall be satisfactory in form and substance to the Administrative
Agent. The Administrative Agent shall have received copies of all other
documents, certificates and instruments reasonably requested thereby, with
respect to the transactions contemplated by this Agreement.]

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     SECTION 5.3 Conditions to All Extensions of Credit. The
obligations of the Lenders to make any Extensions of Credit (including the
initial Extension of Credit), convert or continue any Loan and/or the Issuing
Lenders to issue or extend any Letter of Credit are subject to the satisfaction
of the following conditions precedent on the relevant borrowing, continuation,
conversion, issuance or extension date:

     (a) Continuation of Representations and Warranties. The
representations and warranties contained in Article VI shall be true and
correct in all material respects on and as of such borrowing, continuation,
conversion, issuance or extension date with the same effect as if made on and
as of such date, except for any representation and warranty made as of an
earlier date, which representation and warranty shall remain true and correct
in all material respects as of such earlier date; provided that any
representation and warranty that is qualified by materiality or by reference to
Material Adverse Effect shall be true, correct and complete in all respects as
of such applicable date.

     (b) No Existing Default. No Default or Event of Default shall have
occurred and be continuing (i) on the borrowing, continuation or conversion
date with respect to such Loan or after giving effect to the Loans to be made,
continued or converted on such date or (ii) on the issuance or extension date
with respect to such Letter of Credit or after giving effect to the issuance or
extension of such Letter of Credit on such date.

     (c) Notices. The Administrative Agent shall have received a Notice
of Borrowing or Notice of Conversion/Continuation, as applicable, from the
applicable Borrower in accordance with Section 2.4(a) and Section
4.2.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF THE BORROWERS

     SECTION 6.1 Representations and Warranties. To induce the
Administrative Agent and Lenders to enter into this Agreement and to induce the
Lenders to make Extensions of Credit, each Parent and each Borrower hereby
represents and warrants to the Administrative Agent and Lenders both before and
after giving effect to the transactions contemplated hereunder that:

     (a) Organization; Power; Qualification. Each of the Credit Parties
and its Subsidiaries are duly organized, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or formation, has the
power and authority to own its properties and to carry on its business as now
being and hereafter proposed to be conducted and is duly qualified and
authorized to do business in each jurisdiction in which the character of its
properties or the nature of its business requires such qualification and
authorization, except where the failure to be qualified or authorized,
individually or in the aggregate could not reasonably be excepted to have a
Material Adverse Effect. The jurisdictions in which each Credit Party and its
Subsidiaries are organized and qualified to do business as of the Closing Date
are described on Schedule 6.1(a).

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     (b) Ownership. Each Subsidiary of the Company as of the Closing
Date is listed on Schedule 6.1(b). As of the Closing Date, the
capitalization of the Subsidiaries of the Company consists of the number of
shares, authorized, issued and outstanding, of such classes and series, with or
without par value, described on Schedule 6.1(b). All outstanding shares
have been duly authorized and validly issued and are fully paid and
nonassessable, with no personal liability attaching to the ownership thereof,
and not subject to any preemptive or similar rights. The shareholders of the
Subsidiaries of the Company and the number of shares owned by each as of the
Closing Date are described on Schedule 6.1(b). As of the Closing Date,
there are no outstanding stock purchase warrants, subscriptions, options,
securities, instruments or other rights of any type or nature whatsoever, which
are convertible into, exchangeable for or otherwise provide for or permit the
issuance of Capital Stock of the Company or its Subsidiaries, except as
described on Schedule 6.1(b).

     (c) Authorization of Agreement, Loan Documents and Borrowing. Each
Credit Party and its Subsidiaries has the right, power and authority and has
taken all necessary corporate and other action to authorize the execution,
delivery and performance of this Agreement and each of the other Loan Documents
to which it is a party in accordance with their respective terms. This
Agreement and each of the other Loan Documents have been duly executed and
delivered by the duly authorized officers or authorized representative of each
Credit Party and each of its Subsidiaries party thereto, and each such document
constitutes the legal, valid and binding obligation of such Credit Party or its
Subsidiary party thereto, enforceable in accordance with its terms, except as
such enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar state, federal or provincial debtor relief laws from time
to time in effect which affect the enforcement of creditors’ rights in general
and the availability of equitable remedies.

     (d) Compliance of Agreement, Loan Documents and Borrowing with Laws,
Etc. The execution, delivery and performance by the Credit Parties and
their Subsidiaries of the Loan Documents to which each such Person is a party,
in accordance with their respective terms, the Extensions of Credit hereunder
and the transactions contemplated hereby do not and will not, by the passage of
time, the giving of notice or otherwise, (i) require any Governmental Approval
or violate any Applicable Law relating to the Credit Parties or any of their
Subsidiaries, (ii) conflict with, result in a breach of or constitute a default
under the articles of incorporation, bylaws or other organizational documents
of any Credit Party or any of their Subsidiaries or any indenture, agreement or
other instrument to which such Person is a party or by which any of its
properties may be bound or any Governmental Approval relating to such Person,
(iii) result in or require the creation or imposition of any Lien upon or with
respect to any property now owned or hereafter acquired by such Person other
than Liens arising under the Loan Documents or (iv) require any consent or
authorization of, filing with, or other act in
respect of, an arbitrator or Governmental Authority and no consent of any other
Person is required in connection with the execution, delivery, performance,
validity or enforceability of this Agreement, in each case, expect as could not
reasonably be expected to have a Material Adverse Effect.

     (e) Compliance with Law; Governmental Approvals.

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               (i) Each of the Credit Parties and their Subsidiaries (i) has all
Governmental Approvals required by any Applicable Law for it to conduct its
business, each of which is in full force and effect, is final and not subject
to review on appeal and is not the subject of any pending or, to the best of
its knowledge, threatened attack by direct or collateral proceeding, except
where the failure to do so, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect, (ii) is in compliance
with each Governmental Approval applicable to it and in compliance with all
other Applicable Laws relating to it or any of its respective properties,
except where the failure to comply, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect and (iii) has timely
filed all material reports, documents and other materials required to be filed
by it under all Applicable Laws with any Governmental Authority and has
retained all material records and documents required to be retained by it under
Applicable Law, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.

               (ii) No Credit Party, Subsidiary of a Credit Party, or any Affiliate of a
Credit Party or any Parent Guarantor or Subsidiary Guarantor: (i) is a person
named on the list of Specially Designated Nationals or Blocked Persons
maintained by the U.S. Department of the Treasury’s Office of Foreign Assets
Control (“OFAC”) available at
http://www.treas.gov/offices/eotffc/ofac/sdn/index.html, or as otherwise
published from time to time; or (ii) is (A) an agency of the government of a
country, (B) an organization controlled by a country, or (C) a person resident
in a country that is subject to a sanctions program identified on the list
maintained by OFAC and available at
http://www.treas.gov/offices/eotffc/ofac/sanctions/index.html, or as
otherwise published from time to time, as such program may be applicable to
such agency, organization or person; or (iii) does business in such country or
with any such agency, organization or person, in violation of the economic
sanctions of the United States administered by OFAC.

     (f) Tax Returns and Payments. Each of the Credit Parties and their
Subsidiaries has duly filed or caused to be filed all federal, state,
provincial, local and other material tax returns required by Applicable Law to
be filed, and has paid, or made adequate provision for the payment of, all
federal, state, provincial, local and other taxes, assessments and governmental
charges or levies upon it and its property, income, profits and assets which
are due and payable (other than any amount the validity of which is currently
being contested in good faith by appropriate proceedings and with respect to
which adequate reserves in conformity with GAAP have been provided for on the
books of the Credit Parties and their Subsidiaries and no Lien exists), except
as could not reasonably be expected to have a Material Adverse Effect. Such
returns accurately reflect in all material respects all liability for taxes of
each Credit Party and its Subsidiaries for the periods covered thereby. There
is no ongoing audit or examination or, to the
knowledge of any Credit Party, other investigation by any Governmental
Authority of the tax liability of any Credit Party and its Subsidiaries, other
than Liens for Taxes not yet due and payable. No Governmental Authority has
asserted any Lien or other claim against any Credit Party or any Subsidiary
thereof with respect to unpaid taxes which has not been discharged or resolved.
The charges, accruals and reserves on the books of the Credit Parties and any
of their Subsidiaries in respect of federal, state, provincial, local and other
taxes for all Fiscal Years and portions thereof since the organization of any
Credit Party and any of its Subsidiaries are in the

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judgment of the Credit
Parties adequate, and the Credit Parties do not anticipate any additional taxes
or assessments for any of such years.

     (g) Intellectual Property Matters. Each of the Credit Parties and
their Subsidiaries owns or possesses rights to use all franchises, licenses,
copyrights, copyright applications, patents, patent rights or licenses, patent
applications, trademarks, trademark rights, service mark, service mark rights,
trade names, trade name rights, copyrights and rights with respect to the
foregoing which are required to conduct its business, except, in each case, as
could not reasonably be expected, individually or in the aggregate, to have a
Material Adverse Effect. No event has occurred which permits, or after notice
or lapse of time or both would permit, the revocation or termination of any
such rights, and neither the Credit Parties nor any Subsidiary thereof is
liable to any Person for infringement under Applicable Law with respect to any
such rights as a result of its business operations, except any such revocation,
termination or liability as could not reasonably be expected, in each case,
individually or in the aggregate, to have a Material Adverse Effect.

     (h) Environmental Matters.

          (i) The properties owned, leased or operated by the Credit Parties and
their Subsidiaries now or in the past do not contain, and to their knowledge
have not previously contained, any Hazardous Materials in amounts or
concentrations which (A) constitute or constituted a violation of applicable
Environmental Laws or (B) could give rise to liability under applicable
Environmental Laws, except, where such violation or liability could not
reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect;

          (ii) The Credit Parties, each Subsidiary and such properties and all
operations conducted in connection therewith are in compliance, to the
knowledge of the Credit parties and have been in compliance, with all
applicable Environmental Laws, and there is no contamination at, under or about
such properties or such operations which could interfere with the continued
operation of such properties or impair the fair saleable value thereof, except
for any such noncompliance or contamination, that could not reasonably be
expected, individually or in the aggregate, to have a Material Adverse Effect;

          (iii) No Credit Party or any Subsidiary thereof has received any notice of
violation, alleged violation, non-compliance, liability or potential liability
regarding environmental matters, Hazardous Materials, or compliance with
Environmental Laws, nor does any Credit Party or any Subsidiary thereof have
knowledge or reason to believe that any such notice will be received or is
being threatened, except where such violation, alleged violation,
noncompliance, liability or potential liability which is the subject of such
notice could not reasonably be expected, individually or in the aggregate, to
have a Material Adverse Effect;

          (iv) Hazardous Materials have not been transported or disposed of to or
from the properties owned, leased or operated by the Credit Parties and its
Subsidiaries in violation of, or in a manner or to a location which could give
rise to liability under, Environmental Laws, nor have any Hazardous Materials
been generated, treated, stored or disposed of at, on or under any of such
properties in violation of, or in a manner that could give

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rise to liability
under, any applicable Environmental Laws, except where such violation or
liability could not reasonably be expected, individually or in the aggregate,
to have a Material Adverse Effect;

          (v) No judicial proceedings or governmental or administrative action is
pending under any Environmental Law to which the Credit Parties or any
Subsidiary thereof is or will be named as a potentially responsible party with
respect to such properties or operations conducted in connection therewith, nor
are there any consent decrees or other decrees, consent orders, administrative
orders or other orders, or other administrative or judicial requirements
outstanding under any Environmental Law with respect to the Credit Parties, any
Subsidiary or such properties or such operations; except where such proceeding,
action, degree, order or other requirement could not reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect; and

          (vi) There has been no release, or to the best of the Credit Parties’
knowledge, threat of release, of Hazardous Materials at or from properties
owned, leased or operated by any Credit Party or any Subsidiary, now or in the
past, in violation of or in amounts or in a manner that could give rise to
liability under Environmental Laws, except where such violation or liability
could not reasonably be expected, individually or in the aggregate, to have a
Material Adverse Effect.

     (i) ERISA; Pension Act.

          (i) As of the Closing Date, no Credit Party nor any ERISA Affiliate
maintains or contributes to, or has any obligation under, any Pension Plans
other than those identified on Schedule 6.1(i);

          (ii) Each Credit Party and each ERISA Affiliate is in material compliance
with all applicable provisions of ERISA with respect to all Employee Benefit
Plans except for any required amendments for which the remedial amendment
period as defined in Section 401(b) of the Code has not yet expired and except
where a failure to so comply could not reasonably be expected to have a
Material Adverse Effect. Each Employee Benefit Plan that is intended to be
qualified under Section 401(a) of the Code has been determined by the Internal
Revenue Service to be so qualified, and each trust related to such plan has
been determined to be exempt under Section 501(a) of the Code except for such
plans that have not yet received determination letters but for which the
remedial amendment period for submitting a determination letter has not yet
expired or plans which are master or prototype plans. No liability has been
incurred by any Credit Party or any ERISA Affiliate which remains unsatisfied
for any taxes or penalties with respect to any Employee Benefit Plan or any
Multiemployer Plan except for a liability that could not reasonably be expected
to have a Material Adverse Effect;

          (iii) As of the Closing Date, no Pension Plan has been terminated, nor has
any accumulated funding deficiency (as defined in Section 412 of the Code) been
incurred (without regard to any waiver granted under Section 412 of the Code),
nor has any funding waiver from the Internal Revenue Service been received or
requested with respect to any Pension Plan, nor has any Credit Party or any
ERISA Affiliate failed to make any contributions or to pay

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any amounts due and
owing as required by Section 412 of the Code, Section 302 of ERISA or the terms
of any Pension Plan prior to the due dates of such contributions under Section
412 of the Code or Section 302 of ERISA, nor has there been any event requiring
any disclosure under Section 4041(c)(3)(C) or 4063(a) of ERISA with respect to
any Pension Plan;

          (iv) Except where the failure of any of the following representations to
be correct in all material respects could not reasonably be expected to have a
Material Adverse Effect, no Credit Party or any ERISA Affiliate has: (A)
engaged in a nonexempt prohibited transaction described in Section 406 of the
ERISA or Section 4975 of the Code, (B) incurred any liability to the PBGC which
remains outstanding other than the payment of premiums and there are no premium
payments which are due and unpaid, (C) failed to make a required contribution
or payment to a Multiemployer Plan, or (D) failed to make a required
installment or other required payment under Section 412 of the Code;

          (v) No Termination Event has occurred or is reasonably expected to occur;

          (vi) Except where the failure of any of the following representations to
be correct in all material respects could not reasonably be expected to have a
Material Adverse Effect, no proceeding, claim (other than a benefits claim in
the ordinary course of business), lawsuit and/or investigation is existing or,
to the best knowledge of the Company after due inquiry, threatened concerning
or involving any Employee Benefit Plan; and

          (vii) Neither the Company, nor any of its Subsidiaries incorporated in or
with an established place of business in the United Kingdom has a final salary
pension scheme or is associated or connected with any Person that has a final
salary pension scheme.

     (j) Margin Stock. No Credit Party or any Subsidiary thereof is
engaged principally or as one of its activities in the business of extending
credit for the purpose of “purchasing” or “carrying” any “margin stock” (as
each such term is defined or used, directly or indirectly, in Regulation U of
the Board of Governors of the Federal Reserve System). No part of the proceeds
of any of the Loans or Letters of Credit will be used for purchasing or
carrying margin stock or for any purpose which violates, or which would be
inconsistent with, the provisions of Regulation T, U or X of such Board of
Governors.

     (k) Government Regulation. No Credit Party or any Subsidiary
thereof is an “investment company” or a company “controlled” by an “investment
company” (as each such term is defined or used in the Investment Company Act of
1940, as amended) and no Credit
Party or any Subsidiary thereof is, or after giving effect to any Extension of
Credit will be, subject to regulation under the Public Utility Holding Company
Act of 1935 or the Interstate Commerce Act, each as amended, or any other
Applicable Law which limits its ability to incur or consummate the transactions
contemplated hereby.

     (l) Material Contracts. Schedule 6.1(l) sets forth a
complete and accurate list of all Material Contracts of the Credit Parties and
their Subsidiaries in effect as of the Closing Date not listed on any other
Schedule hereto; other than as set forth in Schedule 6.1(l), each such
Material

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Contract is, and after giving effect to the consummation of the
transactions contemplated by the Loan Documents will be, in full force and
effect in accordance with the material terms thereof. No Credit Party or any
Subsidiary (nor, to the knowledge of the Credit Parties, any other party
thereto) is in breach of or in default under any Material Contract in any
material respect.

     (m) Employee Relations. There is no strike or work stoppage in
existence or threatened involving the Company of any of its Subsidiaries that
could reasonably be expected to have a Material Adverse Effect.

     (n) Burdensome Provisions. No Credit Party or any Subsidiary
thereof is a party to any indenture, agreement, lease or other instrument, or
subject to any corporate or partnership restriction, Governmental Approval or
Applicable Law which is so unusual or burdensome as in the foreseeable future
could be reasonably expected to have a Material Adverse Effect. The Credit
Parties and their Subsidiaries do not presently anticipate that future
expenditures needed to meet the provisions of any statutes, orders, rules or
regulations of a Governmental Authority will be so burdensome as to have a
Material Adverse Effect. No Subsidiary is party to any agreement or instrument
or otherwise subject to any restriction or encumbrance that restricts or limits
its ability to make dividend payments or other distributions in respect of its
Capital Stock to any Credit Party or any Subsidiary or to transfer any of its
assets or properties to any Credit Party or any Subsidiary in each case other
than existing under or by reason of the Loan Documents or Applicable Law.

     (o) Financial Statements. The (i) audited Consolidated balance
sheet of the Company and its Subsidiaries as of December 31, 2003 and the
related audited statements of income and retained earnings and cash flows for
the Fiscal Year then ended and (ii) unaudited Consolidated balance sheet of the
Company and its Subsidiaries as of September 30, 2004 and related unaudited
interim statements of income and retained earnings, copies of which have been
furnished to the Administrative Agent and each Lender, are correct in all
material respects and fairly present on a Consolidated basis the assets,
liabilities and financial position of the Company and its Subsidiaries as at
such dates, and the results of the operations and changes of financial position
for the periods then ended (other than customary year-end adjustments for
unaudited financial statements). All such financial statements, including the
related schedules and notes thereto, have been prepared in accordance with GAAP
subject to year-end adjustments and the absence of footnotes and, in the case
of the statements referred to in (ii) above, by the absence of footnotes. The
Company and its Subsidiaries have no material indebtedness, obligation or other
unusual forward or long-term commitment which is not fairly reflected in the
foregoing financial statements or in the notes thereto.

     (p) No Material Adverse Change. Since the consummation of the IPO,
there has been no material adverse change in the properties, business,
operations, or condition (financial or otherwise) of the Credit Parties and
their Subsidiaries and no event has occurred or condition arisen that could
reasonably be expected to have a Material Adverse Effect.

     (q) Solvency. As of the Closing Date and after giving effect to
each Extension of Credit made hereunder, the Company and its Subsidiaries,
taken as a whole, will be Solvent.

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     (r) Titles to Properties. Each of the Credit Parties and its
Subsidiaries has such title to or valid leasehold interest in (as applicable)
the material real property owned or leased by it as is necessary or desirable
to the conduct of its business and valid and legal title to all of its material
personal property and assets, including, but not limited to, those reflected on
the balance sheets of the Company and its Subsidiaries delivered pursuant to
Section 6.1(o), except those which have been disposed of by Credit
Parties or its Subsidiaries subsequent to such date of such balance sheets
which dispositions have been in the ordinary course of business or as otherwise
expressly permitted hereunder.

     (s) Liens. None of the properties and assets of any Credit Party
or any Subsidiary thereof is subject to any Lien, except Permitted Liens. No
financing statement under the Uniform Commercial Code of any state or
comparable legislation in other jurisdiction which names any Credit Party or
any Subsidiary thereof or any of their respective trade names or divisions as
debtor and which has not been terminated (or satisfactory provision for
termination has been made), has been filed in any state or other jurisdiction
and no Credit Party or any Subsidiary thereof has signed any such financing
statement or any security agreement authorizing any secured party thereunder to
file any such financing statement, except to perfect those Permitted Liens.

     (t) Indebtedness and Guaranty Obligations. Schedule 6.1(t)
is a complete and correct listing of all Indebtedness and Guaranty Obligations
of the Credit Parties and their Subsidiaries as of the Closing Date in excess
of $2,500,000.

     (u) Litigation. Except for matters existing on the Closing Date and
set forth on Schedule 6.1(u), there are no actions, suits or proceedings
pending nor, to the knowledge of any Credit Party (without obligation to
investigate), overtly threatened against any Credit Party or any Subsidiary
thereof or any of their respective properties in any court or before any
arbitrator of any kind or before or by any Governmental Authority that (a)
purport to adversely affect or invalidate this Agreement or any other Loan
Document, or any of the transactions provided for herein or therein, or (b)
either individually or in the aggregate could reasonably be expected to have a
Material Adverse Effect.

     (v) Absence of Defaults. No event has occurred or is continuing
which constitutes a Default or an Event of Default, or which constitutes, or
which with the passage of time or giving of notice or both would constitute, a
default or event of default by any Credit Party or any Subsidiary thereof under
any material judgment, decree or order to which any Credit
Party or its Subsidiaries is a party or by which any Credit Party or its
Subsidiaries or any of their respective properties may be bound or which would
require any Credit Party or its Subsidiaries to make any payment thereunder
prior to the scheduled maturity date therefor.

     (w) Senior Indebtedness Status. The Obligations of each Credit
Party and each of its Subsidiaries under this Agreement and each of the other
Loan Documents ranks and shall continue to rank at least senior in priority of
payment to all Subordinated Indebtedness and all senior unsecured Indebtedness
of each such Person and is designated as “Senior Indebtedness” (or the
equivalent term) under all instruments and documents, now or in the future,
relating to all Subordinated Indebtedness and all senior unsecured Indebtedness
of such Person.

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     (x) Accuracy of Information. All written information, reports and
other papers and data produced by or on behalf of the Credit Parties or any
Subsidiary thereof (other than financial projections, which shall be subject to
the standard set forth in Section 6.1(y)) and furnished to the Lenders
were, at the time the same were so furnished, correct in all material respects
to the extent necessary to give the recipient a true and accurate knowledge of
the subject matter.

     (y) Disclosure. No financial statement, material report, material
certificate or other material information furnished (whether in writing or
orally) by or on behalf of any of the Credit Parties to the Administrative
Agent or any Lender in connection with the transactions contemplated hereby and
the negotiation of this Agreement or delivered hereunder (as modified or
supplemented by publicly available material filed with the SEC regarding the
Credit Parties and their respective subsidiaries (so long as the Administrative
Agent and Lenders have received notice of the filing of such supplemental
material) and by other information so furnished) contains any material
misstatement of fact or omits to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; provided that, with respect to projections and
other projected financial information, pro forma financial
information, estimated financial information and other projected or estimated
information, the Credit Parties represent only that such information was
prepared in good faith based upon assumptions believed by the applicable Credit
Party to be reasonable at the time.

     SECTION 6.2 Survival of Representations and Warranties, Etc. All
representations and warranties set forth in this Article VI and all
representations and warranties contained in any certificate, or any of the Loan
Documents (including, but not limited to, any such representation or warranty
made in or in connection with any amendment thereto) shall constitute
representations and warranties made under this Agreement. All representations
and warranties made under this Agreement shall be made or deemed to be made at
and as of the Closing Date (except those that are expressly made as of a
specific date), shall survive the Closing Date and shall not be waived by the
execution and delivery of this Agreement, any investigation made by or on
behalf of the Lenders or any borrowing hereunder.

ARTICLE VII

FINANCIAL INFORMATION AND NOTICES

     Until all the Obligations have been paid and satisfied in full and the
Commitments terminated, unless consent has been obtained in the manner set
forth in Section 14.2, the Company will furnish or cause to be furnished
to the Administrative Agent at the Administrative Agent’s Office at the address
set forth in Section 14.1, or such other office as may be designated by
the Administrative Agent from time to time:

     SECTION 7.1 Financial Statements and Projections.

     (a) Quarterly Financial Statements. As soon as practicable and in
any event within forty-five (45) days (or, if earlier, on the date of any
required public filing thereof) after the end of each of the first three (3)
fiscal quarters of each Fiscal Year, an unaudited Consolidated

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balance sheet of
the Company and its Subsidiaries as of the close of such fiscal quarter and
unaudited Consolidated statements of income, retained earnings and cash flows
for the fiscal quarter then ended and that portion of the Fiscal Year then
ended, including the notes thereto, all in reasonable detail setting forth in
comparative form the corresponding figures as of the end of and for the
corresponding period in the preceding Fiscal Year and prepared by the Company
in accordance with GAAP and, if applicable, containing disclosure of the effect
on the financial position or results of operations of any change in the
application of accounting principles and practices during the period, and
certified by the chief financial officer of the Company to present fairly in
all material respects the financial condition of the Company and its
Subsidiaries on a Consolidated basis as of their respective dates and the
results of operations of the Company and its Subsidiaries for the respective
periods then ended, subject to normal year end adjustments. Delivery by the
Company to the Administrative Agent and the Lenders of the Company’s quarterly
report to the SEC on Form 10-Q with respect to any fiscal quarter, or the
availability of such report on EDGAR Online, within the period specified above
shall be deemed to be compliance by the Company with this Section
7.1(a).

     (b) Annual Financial Statements. As soon as practicable and in any
event within ninety (90) days (or, if earlier, on the date of any required
public filing thereof) after the end of each Fiscal Year, an audited
Consolidated balance sheet of the Company and its Subsidiaries as of the close
of such Fiscal Year and audited Consolidated statements of income, retained
earnings and cash flows for the Fiscal Year then ended, including the notes
thereto, all in reasonable detail setting forth in comparative form the
corresponding figures as of the end of and for the preceding Fiscal Year and
prepared in accordance with GAAP and, if applicable, containing disclosure of
the effect on the financial position or results of operations of any change in
the application of accounting principles and practices during the year. Such
annual financial statements shall be audited by PricewaterhouseCoopers, LLP or
another independent certified public accounting firm reasonably acceptable to
the Administrative Agent, and accompanied by a report thereon by such certified
public accountants that is not qualified with respect to scope limitations
imposed by the Company or any of its Subsidiaries or with respect to accounting
principles followed by the Company or any of its Subsidiaries not in accordance
with GAAP.
Delivery by the Company to the Administrative Agent and the Lenders of the
Company’s annual report to the SEC on Form 10-K with respect to any fiscal
year, or the availability of such report on EDGAR Online, within the period
specified above shall be deemed to be compliance by the Company with this
Section 7.1(b).

     (c) Annual Business Plan and Financial Projections. As soon as
practicable and in any event within forty-five (45) days after each Fiscal Year
end commencing with the Fiscal Year ending December 31, 2005, a business plan
of the Company and its Subsidiaries for the ensuing four (4) fiscal quarters,
such plan to be prepared in accordance with GAAP and to include, on a quarterly
basis, the following: a quarterly operating and capital budget, a projected
income statement, statement of cash flows and balance sheet and a report
containing management’s discussion and analysis of such projections, which such
projections were prepared in good faith (utilizing assumptions believed by the
Company to be reasonable) of the financial condition and operations of the
Company and its Subsidiaries for such four (4) quarter period.

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     SECTION 7.2 Officer’s Compliance Certificate. At each time
financial statements are delivered pursuant to Sections 7.1(a) or
(b) and at such other times as the Administrative Agent shall reasonably
request following receipt of any notice pursuant to Section 7.5, an
Officer’s Compliance Certificate.

     SECTION 7.3 Accountants’ Certificate. At each time financial
statements are delivered pursuant to Section 7.1(b), a certificate of
the independent public accountants certifying such financial statements that in
connection with their audit, nothing came to their attention that caused them
to believe that any Credit Party or Subsidiary thereof failed to comply with
the terms, covenants, provisions or conditions of Article IX and X,
insofar as they relate to financial and accounting matters or, if such is not
the case, specifying such non-compliance and its nature and period of
existence.

     SECTION 7.4 Other Reports.

     (a) Promptly after becoming available, copies of each annual report, proxy
or financial statement or other report or communication sent to the
stockholders of the Company generally, and copies of all annual, regular,
periodic and special reports and registration statements which the Company may
file or be required to file with the SEC under Section 13 or 15(d) of the
Securities Exchange Act of 1934, and not otherwise required to be delivered to
the Administrative Agent pursuant hereto; provided, however, that if any
such report is available publicly, the Borrower shall not be required to
deliver such report separately;

     (b) Promptly upon receipt thereof, copies of all material reports, if any,
submitted to any Credit Party or its Board of Directors by its independent
public accountants in connection with their auditing function, including, any
management letter commenting on any Credit Party’s internal controls submitted
by such accountants to management in connection with such auditing function, if
the matters stated therein are reasonably likely to have a Material Adverse
Effect, without limitation, any management report and any management responses
thereto; and

     (c) Such other information regarding the operations, business affairs and
financial condition of any Credit Party or any of its Subsidiaries as the
Administrative Agent or any Lender may reasonably request.

     SECTION 7.5 Notice of Litigation and Other Matters. Prompt written
notice of:

     (a) the commencement of any proceedings and investigations by or before
any Governmental Authority and all actions and proceedings in any court or
before any arbitrator against or involving any Credit Party or any Subsidiary
thereof or any of their respective properties, assets or businesses that could
reasonably be expected to have a Material Adverse Effect;

     (b) any notice of any violation received by any Credit Party or any
Subsidiary thereof from any Governmental Authority including, without
limitation, any notice of violation of Environmental Laws, which in any such
case could reasonably be expected to have a Material Adverse Effect;

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     (c) any labor controversy that has resulted in, or threatens to result in,
a strike or other work action against any Credit Party or any Subsidiary
thereof that could reasonably be expected to have a Material Adverse Effect;

     (d) any attachment, judgment, lien, levy or order exceeding $5,000,000
that may be assessed against or which has been overtly threatened against any
Credit Party or any Subsidiary thereof;

     (e) (i) any Default or Event of Default or (ii) any event which
constitutes or which with the passage of time or giving of notice or both would
constitute a default or event of default under any Material Contract to which
any Credit Party or any of its Subsidiaries is a party or by which any Credit
Party or any Subsidiary thereof or any of their respective properties may be
bound;

     (f) (i) any unfavorable determination letter from the Internal Revenue
Service regarding the qualification of an Employee Benefit Plan under Section
401(a) of the Code (along with a copy thereof), (ii) all notices received by
the Company or any ERISA Affiliate of the PBGC’s intent to terminate any
Pension Plan or to have a trustee appointed to administer any Pension Plan,
(iii) all notices received by any Credit Party or any ERISA Affiliate from a
Multiemployer Plan sponsor concerning the imposition or amount of withdrawal
liability pursuant to Section 4202 of ERISA and (iv) the Credit Parties
obtaining knowledge or reason to know that any Credit Party or any ERISA
Affiliate has filed or intends to file a notice of intent to terminate any
Pension Plan under a distress termination within the meaning of Section 4041(c)
of ERISA; and

Each notice pursuant to this Section 7.5 shall be accompanied by a
statement of a Responsible Officer of the Company and the U.S. Borrower setting
forth details of the
occurrence referred to therein and stating what action the Credit Party or any
Subsidiary thereof, as applicable, has taken and proposes to take with respect
thereto. Each notice pursuant to Section 7.5(e)(i) shall describe with
particularity, to the best ability of the Company and its Subsidiaries, any and
all provisions of this Agreement and any other Loan Document that have been
breached.

The Credit Parties are delivering the information required in Article VII in
reliance on the provisions of Section 14.12 hereof.

ARTICLE VIII

AFFIRMATIVE COVENANTS

     Until all of the Obligations have been paid and satisfied in full and the
Commitments terminated unless consent has been obtained in the manner provided
for in Section 14.2, each Credit Party will, and will cause each of its
respective Subsidiaries to:

     SECTION 8.1 Preservation of Corporate Existence and Related
Matters. Except as permitted by Section 10.4, preserve and maintain
(i) its separate corporate existence and (ii)

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all rights, franchises, licenses
and privileges necessary to the conduct of its business, and qualify and remain
qualified as a foreign corporation and authorized to do business in each
jurisdiction where such qualification is required, except, in each case, where
the failure to do so could reasonably be expected to have a Material Adverse
Effect.

     SECTION 8.2 Maintenance of Property. (i) Protect and preserve all
properties useful in and material to its business, including copyrights,
patents, trade names, service marks and trademarks; (ii) maintain in good
working order and condition, ordinary wear and tear excepted, all buildings,
equipment and other tangible real and personal property, except, in each case,
as could not reasonably be expected to have a Material Adverse Effect.

     SECTION 8.3 Insurance. Maintain insurance with financially sound
and reputable insurance companies against such risks and in such amounts as are
customarily maintained by similar businesses and as may be required by
Applicable Law (including, without limitation, hazard and business interruption
insurance), and on the Closing Date and from time to time thereafter deliver to
the Administrative Agent upon its request a detailed list of the insurance then
in effect, stating the names of the insurance companies, the amounts and rates
of the insurance, the dates of the expiration thereof and the properties and
risks covered thereby.

     SECTION 8.4 Accounting Methods and Financial Records. Maintain a
system of accounting, and keep such books, records and accounts (which shall be
true and complete in all material respects) as may be required or as may be
necessary to permit the preparation of financial statements in accordance with
GAAP and in compliance with the regulations of any Governmental Authority
having jurisdiction over it or any of its properties.

     SECTION 8.5 Payment and Performance of Obligations. Pay and
perform (a) all Obligations under this Agreement and the other Loan Documents,
and (b) all taxes, assessments and other governmental charges that may be
levied or assessed upon it or any of its property; provided, that any
Credit Party or such Subsidiary may contest any item described in clause (b) of
this Section in good faith so long as adequate reserves are maintained with
respect thereto in accordance with GAAP.

     SECTION 8.6 Compliance With Laws and Approvals. Observe and remain
in compliance in all material respects with all Applicable Laws and maintain in
full force and effect all Governmental Approvals, in each case applicable to
the conduct of its business, except where the failure to so comply or maintain
such Governmental Approval could not reasonably be expected, individually or in
the aggregate, to have a Material Adverse Effect.

     SECTION 8.7 Environmental Laws. In addition to and without
limiting the generality of Section 8.6, (a) comply with, and use
commercially reasonable efforts to ensure such compliance by all tenants and
subtenants with all applicable Environmental Laws and obtain and comply with
and maintain, and use commercially reasonable efforts to ensure that all
tenants and subtenants, if any, obtain and comply with and maintain, any and
all licenses, approvals, notifications, registrations or permits required by
applicable Environmental Laws, except where the failure to do so could not
reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect, (b) conduct and complete all investigations,

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studies, sampling
and testing, and all remedial, removal and other actions required under
Environmental Laws, and promptly comply with all lawful orders and directives
of any Governmental Authority regarding Environmental Laws, except where the
failure to conduct or complete such actions, or comply with such orders or
directions, could not reasonably be expected, individually or in the aggregate,
to have a Material Adverse Effect, and (c) defend, indemnify and hold harmless
the Administrative Agent and the Lenders, and their respective parents,
Subsidiaries, Affiliates, employees, agents, officers and directors, from and
against any claims, demands, penalties, fines, liabilities, settlements,
damages, costs and expenses of whatever kind or nature known or unknown,
contingent or otherwise, arising out of, or in any way relating to the presence
of Hazardous Materials, or the violation of, noncompliance with or liability
under any Environmental Laws applicable to the operations of any Credit Party
or any Subsidiary thereof, or any orders, requirements or demands of
Governmental Authorities related thereto, including, without limitation,
reasonable attorney’s and consultant’s fees, investigation and laboratory fees,
response costs, court costs and litigation expenses, except to the extent that
any of the foregoing are determined by a court of competent jurisdiction by a
final and nonappealable judgment to have resulted directly from the gross
negligence or willful misconduct of the party seeking indemnification therefor.

     SECTION 8.8 Compliance with ERISA. In addition to and without
limiting the generality of Section 8.6, (a) except where the failure to
so comply could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect, (i) comply with all material applicable
provisions of ERISA and the regulations and published interpretations
thereunder with respect to all Employee Benefit Plans, (ii) not take any action
or fail to take action the result of which could result in liability to the
PBGC or to a Multiemployer Plan, (iii) not participate in any prohibited
transaction that could result in any civil penalty under ERISA or tax under the
Code and (iv) operate each Employee Benefit Plan in such a manner that will not
incur any tax liability under Section 4980B of the Code or any liability to any
qualified beneficiary as defined in Section 4980B of the Code and (b) furnish
to the Administrative Agent upon the Administrative Agent’s request such
additional information about any Employee Benefit Plan as may be reasonably
requested by the Administrative Agent.

     SECTION 8.9 Compliance With Agreements. Comply in all respects
with each term, condition and provision of all leases, agreements and other
instruments entered into in the conduct of its business including, without
limitation, any Material Contract except where the failure to so comply could
not reasonably be expected to have a Material Adverse Effect; provided,
that any Credit Party or any Subsidiary thereof may contest any such lease,
agreement or other instrument in good faith through applicable proceedings so
long as adequate reserves are maintained in accordance with GAAP.

     SECTION 8.10 Visits and Inspections. Permit representatives of the
Administrative Agent or any Lender, from time to time, to visit and inspect its
properties, subject to the proviso at the end of this Section
8.10, no more than once per fiscal year upon reasonable prior notice and
during normal business hours; inspect, audit and make extracts from its books,
records and files, including, but not limited to, management letters prepared
by independent accountants; and discuss with its principal officers, and its
independent accountants, its business, assets, liabilities, financial
condition, results of operations and business prospects; provided that

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(a) any such visits shall be coordinated by the Administrative Agent and (b)
upon the occurrence and during the continuance of a Default or Event of
Default, no such notice shall be required, such visit shall be conducted during
reasonable business hours, and the other limits set forth in the first sentence
of this Section 8.10 shall not apply, the Administrative Agent or
applicable Lender shall give reasonable prior to notice to the Company of its
intention to visit and inspect the properties and records pursuant to this
Section.

     SECTION 8.11 Additional Subsidiaries. Notify the Administrative
Agent of the creation or acquisition of any Domestic Subsidiary and promptly
thereafter (and in any event within thirty (30) days), cause such Person to (i)
become a Subsidiary Guarantor by delivering to the Administrative Agent a duly
executed supplement to the Subsidiary Guaranty Agreement or such other document
as the Administrative Agent shall deem appropriate for such purpose, (ii)
deliver to the Administrative Agent such documents and certificates referred to
in Section 5.2(b) as may be reasonably requested by the Administrative
Agent, (iii) deliver to the Administrative Agent such updated Schedules to the
Loan Documents as requested by the Administrative Agent with respect to such
Person, and (iv) deliver to the Administrative Agent such other documents as
may be reasonably requested by the Administrative Agent, all in form, content
and scope reasonably satisfactory to the Administrative Agent.

     SECTION 8.12 Use of Proceeds. The Credit Parties shall use the proceeds of the Extensions of Credit (a) to
finance the acquisition of Capital Assets in the ordinary course of business,
(b) to refinance the Existing Facilities, and (c) for working capital and
general corporate requirements of any Credit Party and its Subsidiaries,
including Permitted Acquisitions, dividends, stock repurchases and the payment
of certain fees and expenses incurred in connection with this Credit Facility.

     SECTION 8.13 Further Assurances. Make, execute and deliver all
such additional and further acts, things, deeds and instruments as the
Administrative Agent or the Required Lenders (through the Administrative Agent)
may reasonably require to document and consummate the transactions contemplated
hereby and to vest completely in the Administrative Agent and the Lenders their
respective rights under this Agreement, the Letters of Credit and the other
Loan Documents.

ARTICLE IX

FINANCIAL COVENANTS

     Until all of the Obligations have been paid and satisfied in full and the
Commitments terminated, unless consent has been obtained in the manner set
forth in Section 14.2, the Company and its Subsidiaries on a
Consolidated basis will not:

     SECTION 9.1 Maximum Total Leverage Ratio. Commencing with the
fiscal quarter ending, March 31, 2005, as of any fiscal quarter end, permit the
ratio of (a) Total Indebtedness on such date to (b) EBITDA for the period of
four (4) consecutive fiscal quarters

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ending on or immediately prior to such
date, (such ratio, the “Total Leverage Ratio”), to exceed the
corresponding ratio set forth below:

	 	 	 	 	 
	Period
	 	Ratio

	From and including March 31, 2005 through and including
December 31, 2006
	 	 	2.25 to 1.00	 
	From January 1, 2008 through and including the Maturity Date
	 	 	2.00 to 1.00	 

     SECTION 9.2 Minimum Fixed Charge Coverage Ratio. Commencing with
the fiscal quarter ending, March 31, 2005, as of any fiscal quarter end, permit
the ratio of (a) EBITDA for the period of four (4) consecutive fiscal quarters
ending on or immediately prior to such date to (b) Fixed Charges for the period
of four (4) consecutive fiscal quarters ending on or immediately prior to such
date to be less than the Required Fixed Charge Ratio.

     SECTION 9.3 Minimum Net Worth. As of any fiscal quarter end,
permit Net Worth for the fiscal quarter ending on or immediately prior to such
date to be less than the sum of (a) $117,980,000 plus (b) 50% of Net
Income (to the extent positive) for each fiscal quarter end occurring after the
Closing Date.

ARTICLE X

NEGATIVE COVENANTS

     Until all of the Obligations have been paid and satisfied in full and the
Commitments terminated, unless consent has been obtained in the manner set
forth in Section 14.2, the Credit Parties will not, and will not permit
any of their Subsidiaries to:

     SECTION 10.1 Limitations on Indebtedness. Create, incur, assume or
suffer to exist any Indebtedness except:

     (a) the Obligations (including Hedging Obligations to the extent permitted
pursuant to Section 10.3(d));

     (b) Indebtedness existing on the Closing Date and not otherwise permitted
under this Section 10.1, as set forth on Schedule 6.1(t), and the
renewal, refinancing, extension and replacement (but not the increase in the
aggregate principal amount) thereof;

     (c) Indebtedness of the Credit Parties and their Subsidiaries incurred in
connection with Capital Leases, including those Capital Leases existing on the
Closing Date and including Capital Leases incurred in connection with a
Permitted Acquisition (so long as such Capital Lease was not incurred in
contemplation of such acquisition), in an aggregate amount not to exceed
$5,000,000 on any date of determination;

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     (d) purchase money Indebtedness, including all purchase money Indebtedness
existing on the Closing Date and including purchase money Indebtedness incurred
in connection with a Permitted Acquisition (so long as such purchase money
Indebtedness was not incurred in contemplation of such acquisition), of the
Credit Parties and their Subsidiaries in an aggregate amount not to exceed
$2,500,000 on any date of determination;

     (e) Guaranty Obligations in favor of the Administrative Agent for the
benefit of the Administrative Agent and the Lenders;

     (f) Guaranty Obligations with respect to Indebtedness permitted pursuant
to subsections (a) through (d) and (k) through (n)
of this Section;

     (g) Indebtedness owed by any Subsidiary Guarantor to a Borrower, by a
Borrower to any Subsidiary Guarantor and by any Subsidiary Guarantor to any
other Subsidiary Guarantor;

     (h) Indebtedness owed by any Foreign Subsidiary (i) to any other Foreign
Subsidiary and (ii) to a Credit Party or any Domestic Subsidiary thereof;
provided, that the aggregate amount of all intercompany Indebtedness
incurred by Foreign Subsidiaries pursuant to
Section 10.1(h)(ii), plus the aggregate amount of all investments
in Foreign Subsidiaries made pursuant to Section 10.3(a)(iii) shall not
at any time exceed an aggregate amount of $5,000,000;

     (i) Subordinated Indebtedness incurred on terms and conditions reasonably
satisfactory to the Administrative Agent; provided that in the case of
each incurrence of Subordinated Indebtedness, (i) no Default or Event of
Default shall have occurred and be continuing or would be caused by the
issuance of such Subordinated Indebtedness and (ii) the Administrative Agent
shall have received satisfactory written evidence that the Borrowers would be
in compliance with all covenants contained in this Agreement on a pro
forma basis after giving effect to the issuance of any such Subordinated
Indebtedness;

     (j) endorsements of negotiable instruments for deposit or collection in
the ordinary course of business;

     (k) unsecured Indebtedness in respect of performance bonds, worker’s
compensation claims, surety or appeal bonds and payment obligations in
connection with self insurance or similar obligations, in each case to the
extent incurred in the ordinary course of business; and

     (l) Indebtedness in the form of earn-outs and other contingent payments in
respect of Permitted Acquisitions (both before and after any liability
associated therewith becomes fixed);

     (m) Indebtedness (i) incurred in respect of customary netting services,
overdraft protections and otherwise in connection with deposit accounts, in
each case, incurred in the ordinary course of business and (ii) incurred in
connection with Hedging Agreements permitted pursuant to Section 10.3(d)
to the extent not already permitted under any other clause of this Section
10.1; and

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     (n) unsecured Indebtedness in the aggregate principal amount not to exceed
$5,000,000 at any one time outstanding.

     SECTION 10.2 Limitations on Liens. Create, incur, assume or suffer
to exist, any Lien on or with respect to any of its assets or properties
(including, without limitation, shares of Capital Stock), real or personal,
whether now owned or hereafter acquired, except:

     (a) Liens for taxes, assessments and other governmental charges or levies
(excluding any Lien imposed pursuant to any of the provisions of ERISA or
Environmental Laws) not yet due or as to which the grace period (not to exceed

thirty (30) days), if any, related thereto has not expired or which are being
contested in good faith and by appropriate proceedings if adequate reserves are
maintained to the extent required by GAAP;

     (b) the claims of materialmen, mechanics, carriers, warehousemen,
processors or landlords for labor, materials, supplies or rentals incurred in
the ordinary course of business, (i) which are not overdue for a period of more
than thirty (30) days or (ii) which are being contested in good faith and by
appropriate proceedings;

     (c) Liens consisting of deposits or pledges made in the ordinary course of
business in connection with, or to secure payment of, obligations under
workers’ compensation, unemployment insurance or similar legislation;

     (d) Liens constituting encumbrances in the nature of zoning restrictions,
easements and rights or restrictions of record on the use of real property as
are of a nature generally existing with respect to properties of a similar
character, which in the aggregate are not substantial in amount and which do
not, in any case, materially detract from the value of such property or
materially impair the use thereof in the ordinary conduct of business;

     (e) Liens securing the Obligations;

     (f) Liens not otherwise permitted hereunder securing obligations not at
any time exceeding in the aggregate $2,000,000;

     (g) Liens not otherwise permitted by this Section and in existence on the
Closing Date and described on Schedule 10.2;

     (h) Liens securing Indebtedness permitted under Sections 10.1(c),
(d) and (m); provided that (i) such Liens shall be created
substantially simultaneously with the acquisition or lease of the related
asset, (ii) such Liens do not at any time encumber any property other than the
property financed by such Indebtedness, (iii) the amount of Indebtedness
secured thereby is not increased and (iv) the principal amount of Indebtedness
secured by any such Lien shall at no time exceed one hundred percent (100%) of
the original purchase price or lease payment amount of such property at the
time it was acquired;

     (i) any interest or title of a lessor or sublessor under any lease of real
estate;

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     (j) Liens solely on any cash earnest money deposits made by the Borrower
or any of its Subsidiaries in connection with any letter of intent or purchase
agreement permitted hereunder;

     (k) purported Liens evidenced by the filing of precautionary UCC financing
statements relating solely to operating leases for personal property entered
into in the ordinary course of business; and

     (l) receipt of progress payments and advances from customers in the
ordinary course of business to the extent same creates a Lien on the related
inventory and proceeds thereof.

     SECTION 10.3 Limitations on Loans, Advances, Investments and
Acquisitions. Purchase, own, invest in or otherwise acquire, directly or
indirectly, any Capital Stock, interests in any partnership or joint venture
(including, without limitation, the creation or capitalization of any
Subsidiary), evidence of Indebtedness or other obligation or security,
substantially all or a portion of the business or assets of any other Person or
any other investment or interest whatsoever in any other Person, or make or
permit to exist, directly or indirectly, any
loans, advances or extensions of credit to, or any investment in cash or by
delivery of property in, any Person or enter into any Hedging Agreement or
other Interest Rate Contract except:

     (a) investments (i) existing on the Closing Date in Subsidiaries existing
on the Closing Date, (ii) in Domestic Subsidiaries formed or acquired after the
Closing Date so long as the Company and its Subsidiaries comply with the
applicable provisions of Section 8.11, (iii) by the U.S. Borrower or any
Domestic Subsidiary in Foreign Subsidiaries formed or acquired after the
Closing Date; provided that the aggregate amount of all investments in
Foreign Subsidiaries made pursuant to this Section 10.3(a)(iii)
plus all intercompany Indebtedness incurred by Foreign Subsidiaries
under Section 10.1(h) shall not at any time exceed an aggregate amount
of $10,000,000, (iv) by Foreign Subsidiaries in other Foreign Subsidiaries and
(v) the other loans, advances and investments described on Schedule 10.3
existing on the Closing Date;

     (b) investments in (A) cash and (B) (i) marketable direct obligations
issued or unconditionally guaranteed by the United States or any agency thereof
maturing within one year from the date of acquisition thereof (including,
without limitation, those of government sponsored enterprises such as the Farm
Credit System, Federal National Mortgage Association, Federal Home Loan
Mortgage Corporation, Federal Home Loan Bank, Student Loan Marketing
Association, Financing Corporation, The Resolution Funding Corporation, Farm
Credit System Financial Assistance Corporation, and the Federal Housing Finance
Board), (ii) commercial paper maturing within one year from the date of
creation thereof and currently having the highest rating from Standard & Poor’s
Ratings Services, a division of The McGraw-Hill Companies, Inc. (“S&P”)
of at least A-1 or Moody’s Investors Service, Inc. (“Moody’s”) of at
least P-1, (iii) certificates of deposit maturing within one year from the date
of creation thereof issued by commercial banks incorporated under the laws of
the United States, each having combined capital, surplus and undivided profits
of not less than $500,000,000 and having a rating of “A” or better by a
nationally recognized rating agency; provided, that the aggregate amount
invested in such certificates of deposit shall not at any time exceed
$5,000,000 for any one such certificate of deposit and $10,000,000 for any one
such bank, (iv) time deposits maturing no more than

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thirty (30) days from the
date of creation thereof with commercial banks or savings banks or savings and
loan associations each having membership either in the FDIC or the deposits of
which are insured by the FDIC and in amounts not exceeding the maximum amounts
of insurance thereunder, (v) demand deposit accounts maintained in the ordinary
course of business, (vi) municipal bonds, issued by municipalities having the
highest available rating from a nationally recognized rating agency, (vii)
asset backed securities rated “AA” or better by S&P’s, Moody’s or Fitch Ratings
(“Fitch”), (viii) mortgage backed pass through and collateralized
mortgage obligations rated “AAA” by S&P’s, Moody’s or Fitch, (ix) tax exempt
mutual funds to the extent such funds are over-collateralized by at least two
percent (2%) or are backed by a letter of credit issued by a bank that meets
the requirements of clause (iii) above or (x) funds regulated by the U.S.
Government under the Investment Companies Act Rule 2a-7;

     (c) investments by any Borrower or any Subsidiary thereof in the form of
acquisitions of all or substantially all of the business or a line of business
(whether by the acquisition of Capital Stock, assets or any combination
thereof) of any other Person if each such acquisition
meets all of the following requirements (such acquisition being referred to
herein as a “Permitted Acquisition”):

     (i) if involving a Borrower or a Subsidiary Guarantor, such Borrower
or Subsidiary Guarantor shall be the surviving Person and no Change of
Control shall have been effected thereby;

     (ii) the Person to be acquired shall not be subject to any material
pending litigation which could reasonably be expected to have a Material
Adverse Effect;

     (iii) prior to the closing of such acquisition, the acquisition is
approved by the board of directors (or a majority of the holders of the
Capital Stock of such Person) of the Person whose assets or Capital Stock
are being acquired pursuant to such acquisition;

     (iv) prior to consummation of the acquisition, the applicable
Borrower or Subsidiary shall have delivered written evidence that
demonstrates to the reasonable satisfaction of the Administrative Agent
pro forma compliance with each covenant contained in
Article IX, both prior to (with respect to Company and its Subsidiaries
only) and after giving effect to (with respect to the Company, its
Subsidiaries and the target of such acquisition) the acquisition, and no
Default or Event of Default shall have occurred and be continuing both
before and after giving effect to such proposed acquisition;

     (v) the aggregate cash consideration paid for all Permitted
Acquisitions accomplished under this Section 10.3(c) shall not
exceed an aggregate amount of $25,000,000 in any twelve (12) month
period; provided that any Permitted Acquisition accomplished at a
time when the amount of Available Cash less the aggregate amount
of all outstanding Loans under this Agreement equals or exceeds
$25,000,000 (determined on a pro forma basis after giving
effect to the proposed Permitted Acquisition) shall not be subject to the
basket limitation set forth in this Section 10.3(c)(v);

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     (vi) after giving pro forma effect to any such acquisition or
series of related acquisitions, the Total Leverage Ratio of the Company
and its Subsidiaries shall be at least 0.25 less than the maximum
Total Leverage Ratio applicable to the Company and its Subsidiaries as of
the fiscal quarter end immediately following the consummation of such
proposed acquisition or series of related acquisitions; and

     (vii) the applicable Borrower shall have delivered to the
Administrative Agent such documents reasonably requested by the
Administrative Agent or the Required Lenders (through the Administrative
Agent) pursuant to Section 8.11 to be delivered at the time
required pursuant to Section 8.11.

     (d) investments in the form of non-speculative Hedging Agreements with
counterparties and upon terms and conditions (including interest rate)
reasonably satisfactory to
the Administrative Agent; provided, that any counterparty that is a
Lender or an Affiliate of a Lender shall be deemed satisfactory to the
Administrative Agent;

     (e) purchases of assets in the ordinary course of business;

     (f) investments in the form of loans and advances to employees in the
ordinary course of business, which, in the aggregate, do not exceed at any time
$2,500,000;

     (g) intercompany Indebtedness permitted pursuant to Section
10.1(g);

     (h) other additional investments not otherwise permitted pursuant to this
Section not exceeding $2,000,000 in the aggregate in any Fiscal Year; and

     (i) Investments of any Person in existence at the time such Person becomes
a Subsidiary of the Borrower; provided such Investment was not made in
connection with or anticipation of such Person becoming a Subsidiary of the
Borrower.

     SECTION 10.4 Limitations on Mergers and Liquidation. Merge,
consolidate or enter into any similar combination with any other Person or
liquidate, wind-up or dissolve itself (or suffer any liquidation or
dissolution) except:

     (a) any Parent may be merged or consolidated with or into any other
Parent;

     (b) any Wholly-Owned Subsidiary of the U.S. Borrower may be merged or
consolidated with or into the U.S. Borrower (provided that the U.S.
Borrower shall be the continuing or surviving Person);

     (c) any Wholly-Owned Subsidiary of the U.S. Borrower (other than a
Borrower) may be merged or consolidated with or into any Subsidiary Guarantor
(provided that the Subsidiary Guarantor shall be the continuing or
surviving Person);

     (d) any Wholly-Owned Subsidiary (other than a Borrower) may sell, lease,
transfer or otherwise dispose of any or all of its assets (upon voluntary
liquidation or otherwise) to the U.S.

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Borrower or any other Wholly-Owned
Subsidiary; provided that if the transferor in such a transaction is a
Subsidiary Guarantor, then the transferee must either be the U.S. Borrower or a
Subsidiary Guarantor;

     (e) any Wholly-Owned Subsidiary of the U.S. Borrower may merge into the
Person such Wholly-Owned Subsidiary was formed to acquire in connection with a
Permitted Acquisition; and

     (f) any Subsidiary (other than a Borrower) of the U.S. Borrower may wind
up into a Borrower or any Subsidiary Guarantor;

     (g) any Foreign Subsidiary may be merged or consolidated with or wound up
into another Foreign Subsidiary, provided that in any such merger or
consolidation or
winding up involving a Foreign Borrower, such Foreign Borrower shall be the
surviving or continuing Person; and

     (h) an amalgamation of the Canadian Borrower with Pharmaceutical Research
Associates Global, Inc., Pharm Research Associates RX, Inc. and Pharmaceutical
Research Associates Inc., all of which are corporations existing under the laws
of Canada, to continue under the name Pharmaceutical Research Associates Inc.;
provided that the amalgamated entity delivers confirmation, in form and
substance satisfactory to the Administrative Agent, of its obligations under
the Credit Agreement and other Loan Documents as applicable.

     SECTION 10.5 Limitations on Sale of Assets. Convey, sell, lease,
assign, transfer or otherwise dispose of any of its property, business or
assets (including, without limitation, the sale of any receivables and
leasehold interests and any sale-leaseback or similar transaction), whether now
owned or hereafter acquired except:

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

     (b) the sale or lease of obsolete assets no longer used or usable in the
business of any Credit Party or any of their Subsidiaries;

     (c) the transfer of assets pursuant to a transaction permitted pursuant to
Section 10.4;

     (d) the sale or discount without recourse of accounts receivable arising
in the ordinary course of business in connection with the compromise or
collection thereof;

     (e) the disposition of any Hedging Agreement;

     (f) additional dispositions of assets not otherwise permitted pursuant to
this Section in an aggregate amount not to exceed $2,000,000 in any Fiscal
Year.

     (g) the Company or any Subsidiary may sell or dispose of shares of Capital
Stock of itself or any of its Subsidiaries in order to qualify members of the
board of directors (or similar body) of such entity if required by Applicable
Law.

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     SECTION 10.6 Limitations on Dividends and Distributions. Declare
or pay any dividends upon any of its Capital Stock; purchase, redeem, retire or
otherwise acquire, directly or indirectly, any shares of its Capital Stock, or
make any distribution of cash, property or assets among the holders of shares
of its Capital Stock, or make any change in its capital structure which such
change in its capital structure could reasonably be expected to have a Material
Adverse Effect; provided that:

     (a) the Company or any Subsidiary may pay dividends in shares of its own
Capital Stock;

     (b) any Subsidiary may pay cash dividends to the Borrowers;

     (c) so long as no Default or Event of Default has occurred and is
continuing, or would result therefrom, any Subsidiary of the Company may pay
cash dividends to the Company to permit the Company to make cash dividends and
distributions with respect to shares of the common stock of the Company;
provided that (i) prior to making any such dividend or distribution, the
Company shall deliver an Officer’s Compliance Certificate demonstrating, to the
reasonable satisfaction of the Administrative Agent, that the Company and its
Subsidiaries will be in compliance with each of the financial covenants set
forth in Article IX after giving pro forma effect to such
proposed dividend or distribution, and (ii) the aggregate amount of such
dividends and distributions pursuant to this Section 10.6(c) shall not
exceed $15,000,000 during any Fiscal Year of the Company;

     (d) any Subsidiary of the Company may pay dividends to the Company to
permit the Company to purchase the Company’s common stock or common stock
options from present or former officers or employees of the Company or any
Subsidiary upon the death, disability or termination of employment of such
officer or employee; provided, that the aggregate amount of payments
under this clause (c) (net of any proceeds received by the Company and
contributed to a Subsidiary of the Company in connection with substantially
contemporaneous resales of any common stock or common stock options so
purchased) shall not exceed $2,000,000; and

     (e) any Subsidiary of the Company may pay dividends to the Company to (i)
pay general and administrative expenses incurred in the ordinary course of
business not to exceed $5,000,000 in any fiscal year and (ii) pay any taxes
which are due and payable by the Company and the Borrower as part of a
consolidated group.

     SECTION 10.7 Limitations on Exchange and Issuance of Capital Stock.
Issue, sell or otherwise dispose of any class or series of Capital Stock that,
by its terms or by the terms of any security into which it is convertible or
exchangeable, is, or upon the happening of an event or passage of time would
be, (a) convertible or exchangeable into Indebtedness or (b) required to be
redeemed or repurchased, including at the option of the holder, in whole or in
part, or has, or upon the happening of an event or passage of time would have,
a redemption or similar payment due.

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     SECTION 10.8 Transactions with Affiliates. Except for (i)
transactions permitted by Sections 10.3, Section 10.4 and (ii)
transactions described on Schedule 10.8, directly or indirectly (a) make
any loan or advance to, or purchase or assume any note or other obligation to
or from, any of its officers, directors, shareholders or other Affiliates, or
to or from any member of the immediate family of any of its officers,
directors, shareholders or other Affiliates, or subcontract any operations to
any of its Affiliates or (b) enter into, or be a party to, any other
transaction not described in clause (a) above with any of its Affiliates,
except pursuant to the reasonable requirements of its business and upon fair
and reasonable terms that are no less favorable to it than it would obtain in a
comparable arm’s length transaction with a Person not its Affiliate.

     SECTION 10.9 Certain Accounting Changes; Organizational Documents.
(a) Change its Fiscal Year end, or make any change in its accounting treatment
and reporting practices except as required by GAAP or (b) amend, modify or
change its articles of incorporation (or corporate charter or other similar
organizational documents) or amend, modify or change its bylaws (or other
similar documents) in any manner materially adverse in any respect to the
rights or interests of the Lenders.

     SECTION 10.10 Amendments; Payments and Prepayments of Subordinated
Indebtedness.

     (a) Amend or modify (or permit the modification or amendment of) any of
the terms or provisions of any Subordinated Indebtedness in any respect which
would materially adversely affect the rights or interests of the Administrative
Agent and Lenders hereunder.

     (b) Cancel, forgive, make any payment or prepayment on, or redeem or
acquire for value (including, without limitation, (i) by way of depositing with
any trustee with respect thereto money or securities before due for the purpose
of paying when due and (ii) at the maturity thereof) any Subordinated
Indebtedness, except refinancings, refundings, renewals, extensions or exchange
of any Subordinated Indebtedness permitted by Section 10.1(i).

     SECTION 10.11 Restrictive Agreements.

     (a) Enter into any Indebtedness which contains any negative pledge on
assets or any covenants more restrictive than the provisions of Articles
VIII, IX and X hereof, or which restricts, limits or
otherwise encumbers its ability to incur Liens on or with respect to any of its
assets or properties other than the assets or properties securing such
Indebtedness.

     (b) Enter into or permit to exist any agreement (including, without
limitation, any instrument or agreement with respect to Indebtedness permitted
pursuant to Section 10.1, other than this Agreement or any Loan
Document) which impairs, restricts, limits or otherwise encumbers (by covenant
or otherwise) the ability of any Subsidiary of any Credit Party to make any
payment to such Credit Party (in the form of dividends, distributions,
intercompany advances or otherwise).

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     SECTION 10.12 Nature of Business. Substantively alter in any
material respect the character or conduct of the business conducted by any
Credit Party and its Subsidiaries as of the Closing Date.

ARTICLE XI

UNCONDITIONAL GUARANTY

     SECTION 11.1 Guaranty of Obligations. Each of the Parents, and the
U.S. Borrower (collectively, the “Parent Guarantors” and each a
“Parent Guarantor”) hereby jointly and severally with each other,
unconditionally guarantees to the Administrative Agent for the ratable benefit
of the Administrative Agent and the Lenders, and their respective successors,
endorsees, transferees and assigns, the prompt payment of all Obligations of
the Borrowers (including the U.S. Borrower with regards to the guarantees made
herein by the Parents), whether primary or secondary (whether by way of
endorsement or otherwise), whether now existing or hereafter arising, whether
or not from time to time reduced or extinguished (except by payment thereof) or
hereafter increased or incurred, whether or not recovery may be or hereafter
become barred by the statute of limitations, whether enforceable or
unenforceable as against any Borrower, whether or not discharged, stayed or
otherwise affected by any bankruptcy, insolvency or other similar law or
proceeding, whether created directly with the Administrative Agent or any
Lender or acquired by the Administrative Agent or any Lender through
assignment, endorsement or otherwise, whether matured or unmatured, whether
joint or several, as and when the same become due and payable (whether at
maturity or earlier, by reason of acceleration, mandatory repayment or
otherwise), in accordance with the terms of any such instruments evidencing any
such obligations, including all renewals, extensions or modifications thereof
(all Obligations of the Foreign Borrowers to the Administrative Agent and the
Lenders, including all of the foregoing, being hereinafter collectively
referred to as the “Guaranteed Obligations”).

     SECTION 11.2 Bankruptcy Limitations on each Parent Guarantor.
Notwithstanding anything to the contrary contained in Section 11.1, it
is the intention of each Parent Guarantor, the Administrative Agent and the
Lenders that, in any proceeding involving the bankruptcy, reorganization,
arrangement, adjustment of debts, relief of debtors, dissolution or insolvency
or any similar proceeding with respect to any Parent Guarantor or its assets,
the amount of such Parent Guarantor’s obligations with respect to the
Guaranteed Obligations shall be equal to, but not in excess of, the maximum
amount thereof not subject to avoidance or recovery by operation of Applicable
Insolvency Laws. To that end, but only in the event and to the extent that
such Parent Guarantor’s obligations with respect to the Guaranteed Obligations
or any payment made pursuant to such Guaranteed Obligations would, but for the
operation of the first sentence of this Section 11.2, be subject to
avoidance or recovery in any such proceeding under Applicable Insolvency Laws,
the amount of each Parent Guarantor’s obligations with respect to the
Guaranteed Obligations shall be limited to the largest amount which, after
giving effect thereto, would not, under Applicable Insolvency Laws, render such
Parent Guarantor’s obligations with respect to the Guaranteed Obligations
unenforceable or avoidable or otherwise subject to recovery under Applicable
Insolvency Laws. To the extent any payment actually made pursuant to the
Guaranteed Obligations exceeds the limitation of the first sentence of this

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Section 11.2 and is otherwise subject to avoidance and recovery in any
such proceeding under Applicable Insolvency Laws, the amount subject to
avoidance shall in all events be limited to the amount by which such actual
payment exceeds such limitation and the Guaranteed Obligations as limited by
the first sentence of this Section 11.2 shall in all
events remain in full force and effect and be fully enforceable against each
Parent Guarantor. The first sentence of this Section 11.2 is intended
solely to preserve the rights of the Administrative Agent hereunder against
each Parent Guarantor in such proceeding to the maximum extent permitted by
Applicable Insolvency Laws and neither such Parent Guarantor, any other Parent
Guarantor, any Borrower, any Subsidiary Guarantor nor any other Person shall
have any right or claim under such sentence that would not otherwise be
available under Applicable Insolvency Laws in such proceeding.

     SECTION 11.3 Nature of Guaranty. Each Parent Guarantor agrees that
this Guaranty is a continuing, unconditional guaranty of payment and not of
collection, and that its obligations under this Guaranty shall be primary,
absolute and unconditional, irrespective of, and unaffected by (a) the
genuineness, validity, regularity, enforceability or any future amendment of,
or change in, this Agreement or any other Loan Document or any other agreement,
document or instrument to which any Borrower is or may become a party, (b) the
absence of any action to enforce this Guaranty, this Agreement or any other
Loan Document or the waiver or consent by the Administrative Agent or any
Lender with respect to any of the provisions of this Guaranty, this Agreement
or any other Loan Document, (c) the existence, value or condition of, or
failure to perfect a Lien, if any, against, any security for or other guaranty
of the Guaranteed Obligations or any action, or the absence of any action, by
the Administrative Agent or any Lender in respect of such security or guaranty
(including, without limitation, the release of any such security or guaranty),
(d) any structural change in, restructuring of or other similar change of any
Borrower or any of its Subsidiaries or (e) any other action or circumstances
which might otherwise constitute a legal or equitable discharge or defense of a
surety or guarantor; it being agreed by each Parent Guarantor, subject to
Section 11.2, that its obligations under this Guaranty shall not be
discharged until the final and indefeasible payment, in full, of the Guaranteed
Obligations and the termination of the Commitments. To the extent permitted by
law, each Parent Guarantor expressly waives all rights it may now or in the
future have under any statute (including, without limitation, New York or
similar law), or at law or in equity, or otherwise, to compel the
Administrative Agent or any Lender to proceed in respect of the Guaranteed
Obligations against any Borrower, any Subsidiary Guarantor, any other guarantor
or any other party or against any security for or other guaranty of the payment
of the Guaranteed Obligations before proceeding against, or as a condition to
proceeding against, any Parent Guarantor. To the extent permitted by law, each
Parent Guarantor further expressly waives and agrees not to assert or take
advantage of any defense based upon the failure of the Administrative Agent or
any Lender to commence an action in respect of the Guaranteed Obligations
against any Borrower (including the U.S. Borrower), any Parent Guarantor, any
Subsidiary Guarantor, any other guarantor or any other party or any security
for the payment of the Guaranteed Obligations. Each Parent Guarantor agrees
that any notice or directive given at any time to the Administrative Agent or
any Lender which is inconsistent with the waivers in the preceding two
sentences shall be null and void and may be ignored by the Administrative Agent
or such Lender, and, in addition, may not be pleaded or introduced as evidence
in any litigation relating to this Guaranty for the reason that such pleading
or introduction would be at variance with the written terms of this Guaranty,
unless the Administrative Agent and the Required Lenders have specifically
agreed otherwise in

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writing. The foregoing waivers are of the essence of the
transaction contemplated by the Loan
Documents and, but for this Guaranty and such waivers, the Administrative Agent
and the Lenders would decline to enter into this Agreement.

     SECTION 11.4 Demand by the Administrative Agent. In addition to
the terms set forth in Section 11.3, and in no manner imposing any
limitation on such terms, if all or any portion of the then outstanding
Guaranteed Obligations under this Agreement are declared to be immediately due
and payable in accordance with the terms of this Agreement, then the Parent
Guarantors shall, upon demand in writing therefor by the Administrative Agent
to the Parent Guarantors, pay all or such portion of the outstanding Guaranteed
Obligations then declared due and payable. Payment by the Parent Guarantors
shall be made to the Administrative Agent, to be credited and applied upon the
Guaranteed Obligations, in immediately available funds to an account designated
by the Administrative Agent or at the Administrative Agent’s Office or at any
other address that may be specified in writing from time to time by the
Administrative Agent.

     SECTION 11.5 Waivers. In addition to the waivers contained in
Section 11.4, each Parent Guarantor waives, and agrees that it shall not
at any time insist upon, plead or in any manner whatever claim or take the
benefit or advantage of, any appraisal, valuation, stay, extension, marshalling
of assets or redemption laws, or exemption, whether now or at any time
hereafter in force, which may delay, prevent or otherwise affect the
performance by any Parent Guarantor of its obligations under, or the
enforcement by the Administrative Agent or the Lenders of, this Guaranty. Each
Parent Guarantor further hereby waives diligence, presentment, demand, protest
and notice of whatever kind or nature with respect to any of the Guaranteed
Obligations and waives the benefit of all provisions of law which are or might
be in conflict with the terms of this Guaranty. Each Parent Guarantor
represents, warrants and agrees that its obligations under this Guaranty are
not and shall not be subject to any counterclaims, offsets or defenses of any
kind against the Administrative Agent, the Lenders or the Borrowers whether now
existing or which may arise in the future.

     SECTION 11.6 Modification of Loan Documents etc. If the
Administrative Agent or the Lenders shall at any time or from time to time,
with or without the consent of, or notice to, the Parent Guarantors (a) change
or extend the manner, place or terms of payment of, or renew or alter all or
any portion of, the Guaranteed Obligations, (b) take any action under or in
respect of the Loan Documents in the exercise of any remedy, power or privilege
contained therein or available to it at law, in equity or otherwise, or waive
or refrain from exercising any such remedies, powers or privileges, (c) amend
or modify, in any manner whatsoever, the Loan Documents, (d) extend or waive
the time for performance by any Parent Guarantor, any Subsidiary Guarantor, any
other guarantor, any Borrower or any other Person of, or compliance with, any
term, covenant or agreement on its part to be performed or observed under a
Loan Document (other than this Guaranty), or waive such performance or
compliance or consent to a failure of, or departure from, such performance or
compliance, (e) take and hold security or collateral for the payment of the
Guaranteed Obligations or sell, exchange, release, dispose of, or otherwise
deal with, any property pledged, mortgaged or conveyed, or in which the
Administrative Agent or any Lender has been granted a Lien, to secure any
Indebtedness of any Parent Guarantor, any Subsidiary Guarantor, any other
guarantor or any Borrower to the

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Administrative Agent or any Lender, (f) release anyone who may be liable in any
manner for the payment of any amounts owed by any Parent Guarantor, any
Subsidiary Guarantor, any other guarantor or any Borrower to the Administrative
Agent or any Lender, (g) modify or terminate the terms of any intercreditor or
subordination agreement pursuant to which claims of other creditors of any
Parent Guarantor, any Subsidiary Guarantor, any other guarantor or any Borrower
are subordinated to the claims of the Administrative Agent or any Lender or (h)
apply any sums by whomever paid or however realized to any Guaranteed
Obligations owing by any Parent Guarantor, any Subsidiary Guarantor, any other
guarantor or any Borrower to the Administrative Agent or any Lender in such
manner as the Administrative Agent or any Lender shall determine in its
reasonable discretion; then neither the Administrative Agent nor any Lender
shall incur any liability to any Parent Guarantor as a result thereof, and no
such action shall impair or release the obligations of any Parent Guarantor
under this Guaranty.

     SECTION 11.7 Reinstatement. Each Parent Guarantor agrees that, if
any payment made by any Borrower or any other Person applied to the Obligations
is at any time annulled, set aside, rescinded, invalidated, declared to be
fraudulent or preferential or otherwise required to be refunded or repaid, or
the proceeds of any collateral are required to be returned by the
Administrative Agent or any Lender to any Borrower, its estate, trustee,
receiver, liquidator, administrator or any other Person, including, without
limitation, any Parent Guarantor, under any Applicable Law or equitable cause,
then, to the extent of such payment or repayment, each Parent Guarantor’s
liability hereunder shall be and remain in full force and effect, as fully as
if such payment had never been made, and, if prior thereto, this Guaranty shall
have been canceled or surrendered, this Guaranty shall be reinstated in full
force and effect, and such prior cancellation or surrender shall not diminish,
release, discharge, impair or otherwise affect the obligations of such Parent
Guarantor in respect of the amount of such payment.

     SECTION 11.8 No Subrogation. Notwithstanding any payment or
payments by any of the Parent Guarantors hereunder, or any set-off or
application of funds of any of the Parent Guarantors by the Administrative
Agent or any Lender, or the receipt of any amounts by the Administrative Agent
or any Lender with respect to any of the Guaranteed Obligations, none of the
Parent Guarantors shall be entitled to be subrogated to any of the rights of
the Administrative Agent or any Lender against any Borrower, any other Parent
Guarantor, any Subsidiary Guarantor or any other guarantor or against any
collateral security held by the Administrative Agent or any Lender for the
payment of the Guaranteed Obligations nor shall any Parent Guarantor seek any
reimbursement from any Borrower, any other Parent Guarantor, any Subsidiary
Guarantor or any of the other guarantors in respect of payments made by such
Parent Guarantor in connection with the Guaranteed Obligations, until all
amounts owing to the Administrative Agent and the Lenders on account of the
Guaranteed Obligations are paid in full and the Aggregate Commitment is
terminated. If any amount shall be paid to any Parent Guarantor on account of
such subrogation rights at any time when all of the Guaranteed Obligations
shall not have been paid in full, such amount shall be held by such Parent
Guarantor in trust for the Administrative Agent, segregated from other funds of
such Parent Guarantor, and shall, forthwith upon receipt by such Parent
Guarantor, be turned over to the Administrative Agent in the exact form
received by such Parent Guarantor (duly endorsed by such Parent Guarantor to
the Administrative Agent, if required) to be applied
against the Guaranteed Obligations, whether matured or unmatured, in such order
as set forth herein.

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     SECTION
11.9 Agreements for Reimbursement. Notwithstanding anything
to the contrary contained herein, the parties hereto acknowledge and agree
that, as the Borrowers are Wholly-Owned Subsidiaries of the Parent Guarantors
and part of an integrated financial enterprise to which the Parent Guarantors
are a party, each Subsidiary Guarantor shall have a right of reimbursement and
indemnity from the Parent Guarantors for any amount paid by such Subsidiary
Guarantor in lieu of a right of contribution between the Subsidiary Guarantors
and the Parent Guarantors.

ARTICLE XII

DEFAULT AND REMEDIES

     SECTION 12.1 Events of Default. Each of the following shall
constitute an Event of Default, whatever the reason for such event and whether
it shall be voluntary or involuntary or be effected by operation of law or
pursuant to any judgment or order of any court or any order, rule or regulation
of any Governmental Authority or otherwise:

     (a) Default in Payment of Principal of Loans and Reimbursement
Obligations. The Borrowers shall default in any payment of principal of
any Loan when due or in any payment of a Reimbursement Obligation whether at
maturity, by reason of acceleration or otherwise.

     (b) Other Payment Default. The Borrowers or any other Credit Party
shall default in the payment when and as due (whether at maturity, by reason of
acceleration or otherwise) of interest on any Loan or Reimbursement Obligation
or the payment of any other Obligation, and such default shall continue for a
period of five (5) days.

     (c) Misrepresentation. Any representation, warranty, certification
or statement of fact made or deemed made by or on behalf of any Credit Party or
any Subsidiary herein, in any other Loan Document, or in any document delivered
in connection herewith or therewith that is subject to materiality or Material
Adverse Effect qualifications, shall be incorrect or misleading in any respect
when made or deemed made or any representation, warranty, certification or
statement of fact made or deemed made by or on behalf of any Credit Party or
any Subsidiary herein, in any other Loan Document, or in any document delivered
in connection herewith or therewith that is not subject to materiality or
Material Adverse Effect qualifications, shall be incorrect or misleading in any
material respect when made or deemed made

     (d) Default in Performance of Certain Covenants. Any Borrower or
Subsidiary thereof shall default in the performance or observance of any
covenant or agreement
contained in Sections 7.1, 7.2 or 7.5(e)(i) or Articles
IX or X of this Agreement.

     (e) Default in Performance of Other Covenants and Conditions. Any
Credit Party or Subsidiary thereof shall default in the performance or
observance of any term, covenant, condition or agreement contained in this
Agreement (other than as specifically provided for otherwise in this Section)
or any other Loan Document and such default shall continue for a

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period of
thirty (30) days after written notice thereof has been given to the Company by
the Administrative Agent.

     (f) Hedging Agreement. Any Credit Party or Subsidiary thereof
shall default in the performance or observance of any terms, covenant,
condition or agreement (after giving effect to any applicable grace or cure
period) under any Hedging Agreement and such default causes the termination of
such Hedging Agreement and the Termination Value owned by such Person as a
result thereof exceeds $2,500,000.

     (g) Indebtedness Cross-Default. Any Credit Party or Subsidiary
thereof shall (i) default in the payment of any Indebtedness (other than the
Loans or any Reimbursement Obligation) the aggregate outstanding amount of
which Indebtedness is in excess of $5,000,000 beyond the period of grace if
any, provided in the instrument or agreement under which such Indebtedness was
created, or (ii) default in the observance or performance of any other material
term or condition relating to any Indebtedness (other than the Loans or any
Reimbursement Obligation) beyond the period of grace, if any, provided in the
instrument or agreement under which such Indebtedness was created, the
aggregate outstanding amount of which Indebtedness is in excess of $5,000,000
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
holders of such Indebtedness (or a trustee or agent on behalf of such holder or
holders) to cause, with the giving of notice if required, any such Indebtedness
to become due prior to its stated maturity (any applicable grace period having
expired).

     (h) Change in Control. A Change in Control shall occur.

     (i) Voluntary Bankruptcy Proceeding. Any Credit Party or any
Subsidiary thereof shall (i) commence a voluntary case under the federal
bankruptcy laws (as now or hereafter in effect), (ii) file a petition seeking
to take advantage of any other laws, domestic or foreign, relating to
bankruptcy, insolvency, reorganization, winding up or composition for
adjustment of indebtedness, (iii) consent to or fail to contest in a timely and
appropriate manner any petition filed against it in an involuntary case under
such bankruptcy laws or other laws, (iv) apply for or consent to, or fail to
contest in a timely and appropriate manner, the appointment of, or the taking
of possession by, a receiver, administrator, administrative receiver,
preliminary insolvency administrator, custodian, trustee, liquidator or manager
of itself or of a substantial part of its property, domestic or foreign, (v)
admit in writing its inability to pay its indebtedness as they become due, (vi)
make a general assignment for the benefit of creditors, or (vii) take any
corporate action for the purpose of authorizing any of the foregoing.

     (j) Involuntary Bankruptcy Proceeding. (i) A case or other
proceeding shall be commenced against any Credit Party or any Subsidiary
thereof or any petition shall be presented in any court of competent
jurisdiction or in the case of administration application made, seeking (A)
relief under the federal bankruptcy laws (as now or hereafter in effect) or
under any other laws, domestic or foreign, relating to bankruptcy, insolvency,
reorganization, winding up or adjustment of indebtedness, or (B) the
appointment of a trustee, administrator, administrative receiver, preliminary
insolvency administrator, receiver, custodian, liquidator, manager or

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similar
official for any Credit Party or any Subsidiary thereof or for all or any
substantial part of their respective assets, domestic or foreign, and such case
(save in the case of the appointment of an administrator) or proceeding shall
continue without dismissal or stay for a period of sixty (60) consecutive days,
or an order granting the relief requested in such case or proceeding
(including, but not limited to, an order for relief under such federal
bankruptcy laws) shall be entered, (ii) any Credit Party or any of its
Subsidiaries organized under the laws of England and Wales is deemed unable to
pay its indebtedness within the meaning of Section 123 of the Insolvency Act
1986 or becomes unable to pay its indebtedness as they become due or otherwise
becomes insolvent, (iii) any order is made or any resolution passed for the
winding-up or administration of any Credit Party or any of its Subsidiaries
except for the purposes of a solvent amalgamation or reconstruction previously
approved by the Required Lenders in writing or where such presentation or
application for winding up is frivolous or vexatious and is discharged within
twenty-one (21) days of presentation or application or in any event prior to
being published, or (iv) the German Borrower becomes insolvent in the meaning
of Section 17 German Insolvency Code (InsO) or over-indebted in the meaning of
Section 19 German Insolvency Code (InsO), its insolvency is imminent in the
meaning of Section 18 German Insolvency Code (InsO), and/or the insolvency
court takes any protective measures in the meaning of Section 21 German
Insolvency Code (InsO).

     (k) Failure of Agreements. Any provision of this Agreement or any
provision of any other Loan Document shall for any reason cease to be valid and
binding on any Credit Party or any Subsidiary party thereto or any such Person
shall so state in writing.

     (l) Termination Event. The occurrence of any of the following
events: (i) the Credit Party or any ERISA Affiliate fails to make full payment
when due of all amounts which, under the provisions of any Pension Plan or
Section 412 of the Code, any Credit Party or any ERISA Affiliate is required to
pay as contributions thereto, (ii) an accumulated funding deficiency in excess
of $2,000,000 occurs or exists, whether or not waived, with respect to any
Pension Plan, (iii) a Termination Event or (iv) any Credit Party or any ERISA
Affiliate as employers under one or more Multiemployer Plans makes a complete
or partial withdrawal from any such Multiemployer Plan and the plan sponsor of
such Multiemployer Plans notifies such withdrawing employer that such employer
has incurred a withdrawal liability requiring payments in an amount exceeding
$2,000,000.

     (m) Judgment. A judgment or order for the payment of money which
causes the aggregate amount of all such judgments to exceed $5,000,000 in any
Fiscal Year (to the extent not covered by independent third-party insurance as
to which the insurer does not dispute coverage), shall be entered against any
Credit Party or Subsidiary thereof by any court and such
judgment or order shall continue without having been discharged, vacated or
stayed for a period of sixty (60) days after the entry thereof.

     (n) Analogous Proceedings. There occurs, in relation to any Credit
Party or any Subsidiary thereof or its assets, in any jurisdiction any event
which appears to the Administrative Agent (on its reasonable discretion) to
correspond in that jurisdiction with any of those events mentioned in paragraph
(i) (Voluntary Bankruptcy Proceedings), or paragraph (j) (Involuntary
Bankruptcy Proceedings).

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     SECTION 12.2 Remedies. Upon the occurrence of an Event of Default,
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 Company:

     (a) Acceleration; Termination of Facilities. Terminate the
Commitments and declare the principal of and interest on the Loans and the
Reimbursement Obligations at the time outstanding, and all other amounts owed
to the Lenders and to the Administrative Agent under this Agreement or any of
the other Loan Documents (including, without limitation, all L/C Obligations,
whether or not the beneficiaries of the then outstanding Letters of Credit
shall have presented or shall be entitled to present the documents required
thereunder) and all other Obligations (other than Hedging Obligations), to be
forthwith due and payable, whereupon the same shall immediately become due and
payable without presentment, demand, protest or other notice of any kind, all
of which are expressly waived by each Credit Party, anything in this Agreement
or the other Loan Documents to the contrary notwithstanding, and terminate the
Credit Facility and any right of the Borrowers to request borrowings or Letters
of Credit thereunder; provided, that upon the occurrence of an Event of
Default specified in Section 12.1(i) or (j), the Credit Facility
shall be automatically terminated and all Obligations (other than Hedging
Obligations) shall automatically become due and payable without presentment,
demand, protest or other notice of any kind, all of which are expressly waived
by each Credit Party, anything in this Agreement or in any other Loan Document
to the contrary notwithstanding.

     (b) Letters of Credit. With respect to all Letters of Credit with
respect to which presentment for honor shall not have occurred at the time of
an acceleration pursuant to the preceding subsection, the Borrowers shall at
such time deposit in a cash collateral account opened by the Administrative
Agent an amount equal to the aggregate then undrawn and unexpired amount of
such Letters of Credit (which such cash collateral shall be deposited in the
applicable Permitted Currency in which each Letter of Credit is denominated).
Amounts held in such cash collateral account shall be applied by the
Administrative Agent to the payment of drafts drawn under such Letters of
Credit, and the unused portion thereof after all such Letters of Credit shall
have expired or been fully drawn upon, if any, shall be applied to repay the
other Obligations on a pro rata basis. After all such Letters of Credit
shall have expired or been fully drawn upon, the Reimbursement Obligation shall
have been satisfied and all other Obligations shall have been paid in full, the
balance, if any, in such cash collateral account shall be returned to the
Borrowers.

     (c) Rights of Collection. Exercise on behalf of the Lenders all of
its other rights and remedies under this Agreement, the other Loan Documents
and Applicable Law, in order to satisfy all of the Borrowers’ Obligations.

     SECTION 12.3 Rights and Remedies Cumulative; Non-Waiver; etc. The
enumeration of the rights and remedies of the Administrative Agent and the
Lenders set forth in this Agreement is not intended to be exhaustive and the
exercise by the Administrative Agent and the Lenders of any right or remedy
shall not preclude the exercise of any other rights or remedies, all of which
shall be cumulative, and shall be in addition to any other right or remedy
given hereunder or under the other Loan Documents or that may now or hereafter
exist at law or

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in equity or by suit or otherwise. No delay or failure to take
action on the part of the Administrative Agent or any Lender in exercising any
right, power or privilege shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right, power or privilege preclude any
other or further exercise thereof or the exercise of any other right, power or
privilege or shall be construed to be a waiver of any Event of Default. No
course of dealing between the Credit Parties, the Administrative Agent and the
Lenders or their respective agents or employees shall be effective to change,
modify or discharge any provision of this Agreement or any of the other Loan
Documents or to constitute a waiver of any Event of Default.

     SECTION 12.4 Crediting of Payments and Proceeds. In the event that
the Borrowers shall fail to pay any of the Obligations when due and the
Obligations have been accelerated pursuant to Section 12.2, all payments
received by the Lenders upon the Obligations and all net proceeds from the
enforcement of the Obligations shall be applied:

     First, to payment of that portion of the Obligations constituting
fees, indemnities, expenses and other amounts, including attorney fees, payable
to the Administrative Agent in its capacity as such and the Issuing Lenders in
their capacity as such (ratably among the Administrative Agent and the Issuing
Lenders in proportion to the respective amounts described in this clause
First payable to them);

     Second, to payment of that portion of the Obligations constituting
fees, indemnities and other amounts (other than principal and interest) payable
to the Lenders, including attorney fees (ratably among the Lenders in
proportion to the respective amounts described in this clause Second
payable to them);

     Third, to payment of that portion of the Obligations constituting
accrued and unpaid interest on the Loans and Reimbursement Obligations and any
Hedging Obligations (including any termination payments and any accrued and
unpaid interest thereon) (ratably among the Lenders in proportion to the
respective amounts described in this clause Third payable to them);

     Fourth, to payment of that portion of the Obligations constituting
unpaid principal of the Loans and Reimbursement Obligations (ratably among the
Lenders in proportion to the respective amounts described in this clause
Fourth held by them);

     Fifth, to the Administrative Agent for the account of the Issuing
Lenders, to cash collateralize any L/C Obligations then outstanding on a pro
rata basis; and

     Last, the balance, if any, after all of the Obligations have been
paid in full, to the Borrowers or as otherwise required by Applicable Law.

     SECTION 12.5 Administrative Agent May File Proofs of Claim. In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to any Credit Party, the Administrative Agent (irrespective
of whether the principal of any Loan or L/C Obligation shall then be due and
payable as herein expressed or by declaration or otherwise and irrespective of

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whether the Administrative Agent shall have made any demand on the Borrowers)
shall be entitled and empowered, by intervention in such proceeding or
otherwise:

     (a) to file and prove a claim for the whole amount of the principal and
interest owing and unpaid in respect of the Loans, L/C Obligations and all
other Obligations that are owing and unpaid and to file such other documents as
may be necessary or advisable in order to have the claims of the Lenders and
the Administrative Agent (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Lenders and the Administrative
Agent and their respective agents and counsel and all other amounts due the
Lenders and the Administrative Agent under Sections 3.3, 4.3 and
14.3) allowed in such judicial proceeding; and

     (b) to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Lender to make such payments to the Administrative Agent and, in the event
that the Administrative Agent shall consent to the making of such payments
directly to the Lenders, to pay to the Administrative Agent any amount due for
the reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 4.3 and 14.3.

Nothing contained herein shall be deemed to authorize the Administrative Agent
to authorize or consent to or accept or adopt on behalf of any Lender any plan
of reorganization, arrangement, adjustment or composition affecting the
Obligations or the rights of any Lender or to authorize the Administrative
Agent to vote in respect of the claim of any Lender in any such proceeding.

     SECTION 12.6 Judgment Currency.

     (a) The obligation of the Borrowers to make payments of principal and
interest hereunder and the obligation of any such Person to make payments of
any other amounts payable hereunder or pursuant to any other Loan Document in
the currency specified for such payment shall not be discharged or satisfied by
any tender, or any recovery pursuant to any judgment, which is expressed in or converted into any other currency, except to the
extent that such tender or recovery shall result in the actual receipt by each
of the Administrative Agent and Lenders of the full amount of the particular
currency expressed to be payable pursuant to the applicable Loan Document. The
Administrative Agent shall, using all amounts obtained or received from the
Borrowers pursuant to any such tender or recovery in payment of principal of
and interest on the Obligations, promptly purchase the applicable currency at
the most favorable spot exchange rate determined by the Administrative Agent to
be available to it. The obligation of the Borrowers to make payments in the
applicable currency shall be enforceable as an alternative or additional cause
of action solely for the purpose of recovering in the applicable currency the
amount, if any, by which such actual receipt shall fall short of the full
amount of the currency expressed to be payable pursuant to the applicable Loan
Document.

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     (b) Without limiting Section 12.6(a), the Borrowers shall indemnify
and hold harmless the Administrative Agent, the Lenders and the Issuing
Lenders, as applicable, against any loss incurred by the Administrative Agent,
any Lender or any Issuing Lender as a result of any payment or recovery
described in Section 12.6(a) and as a result of any variation having
occurred in rates of exchange between the date of any such amount becoming due
under this Agreement or any other Loan Document and the date of actual payment
thereof. The foregoing indemnity shall constitute a separate and independent
obligation of the Borrowers and shall continue in full force and effect
notwithstanding any such payment or recovery.

ARTICLE XIII

THE ADMINISTRATIVE AGENT

     SECTION 13.1 Appointment and Authority. Each of the Lenders hereby
irrevocably designates and appoints Wachovia to act on its behalf as the
Administrative Agent of such Lender under this Agreement and the other Loan
Documents for the term hereof and each such Lender irrevocably authorizes
Wachovia, as Administrative Agent for such Lender, 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 such other Loan
Documents, together with such other powers as are reasonably incidental
thereto. Notwithstanding any provision to the contrary elsewhere in this
Agreement or such other Loan Documents, the Administrative Agent shall not have
any duties or responsibilities, except those expressly set forth herein and
therein, or any fiduciary relationship with any Lender, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities
shall be read into this Agreement or the other Loan Documents or otherwise
exist against the Administrative Agent. Any reference to the Administrative
Agent in this Article XIII shall be deemed to refer to the
Administrative Agent solely in its capacity as Administrative Agent and not in
its capacity as a Lender.

     SECTION 13.2 Delegation of Duties. The Administrative Agent may
execute any of its respective 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 the Administrative Agent with reasonable care.

     SECTION 13.3 Exculpatory Provisions. Neither the Administrative
Agent nor any of its officers, directors, employees, agents, attorneys-in-fact,
Subsidiaries or Affiliates shall be (a) liable for any action lawfully taken or
omitted to be taken by it or such Person under or in connection with this
Agreement or the other Loan Documents (except for actions occasioned solely by
its or such Person’s own gross negligence or willful misconduct), or (b)
responsible in any manner to any of the Lenders for any recitals, statements,
representations or warranties made by the Borrowers or any of the Credit
Parties or any officer thereof contained in this Agreement or the other Loan
Documents or in any certificate, report, statement or other document referred
to or provided for in, or received by the Administrative Agent under or in
connection with, this Agreement or the other Loan Documents or for the value,
validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement or the other Loan Documents or for any failure of

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the Borrowers or
any of the Credit Parties to perform their respective obligations hereunder or
thereunder. The Administrative Agent shall not be under any obligation to any
Lender to ascertain or to inquire as to the observance or performance of any of
the agreements contained in, or conditions of, this Agreement, or to inspect
the properties, books or records of the Borrowers or any of the Credit Parties.

     SECTION 13.4 Reliance by the Administrative Agent.

     (a) The Administrative Agent shall be entitled to rely, and shall be fully
protected in relying, upon any note, writing, resolution, notice, consent,
certificate, affidavit, letter, cablegram, telegram, telecopy, telex or
teletype message, statement, order or other document or conversation believed
by it to be genuine and correct and to have been signed, sent or made by the
proper Person or Persons and upon advice and statements of legal counsel
(including, without limitation, counsel to the Credit Parties), independent
accountants and other experts selected by the Administrative Agent. The
Administrative Agent shall be fully justified in failing or refusing to take
any action under this Agreement and the other Loan Documents unless it shall
first receive such advice or concurrence of the Required Lenders (or, when
expressly required hereby or by the relevant other Loan Documents, all the
Lenders) as it deems appropriate or it shall first be indemnified to its
satisfaction by the Lenders against any and all liability and expense which may
be incurred by it by reason of taking or continuing to take any such action
except for its own gross negligence or willful misconduct. The Administrative
Agent shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement in accordance with a request of the Required
Lenders (or, when expressly required hereby, all the Lenders), and such request
and any action taken or failure to act pursuant thereto shall be binding upon
all the Lenders.

     (b) For purposes of determining compliance with the conditions specified
in Section 5.2, each Lender that has signed this Agreement shall be
deemed to have consented to, approved or accepted or to be satisfied with, each
document or other matter required thereunder to be consented to or approved by
or acceptable or satisfactory to a Lender
unless the Administrative Agent shall have received notice from such
Lender prior to the proposed Closing Date specifying its objection thereto.

     SECTION 13.5 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 it has received notice from a Lender or the Borrowers
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, it shall promptly 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, when expressly required hereby, all the 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, except to the extent that other
provisions of this Agreement expressly require that any such action be taken or
not be taken only

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with the consent and authorization or the request of the
Lenders or Required Lenders, as applicable.

     SECTION 13.6 Non-Reliance on the Administrative Agent and Other
Lenders. Each Lender expressly acknowledges that neither the
Administrative Agent nor any of its respective officers, directors, employees,
agents, attorneys-in-fact, Subsidiaries or Affiliates has made any
representations or warranties to it and that no act by the Administrative Agent
hereafter taken, including any review of the affairs of the Credit Parties or
their Subsidiaries, shall be deemed to constitute any representation or
warranty by the Administrative Agent to any Lender. Each Lender represents to
the Administrative Agent that it has, independently and without reliance upon
the Administrative Agent or any other Lender, and based on such documents and
information as it has deemed appropriate, made its own appraisal of and
investigation into the business, operations, property, financial and other
condition and creditworthiness of the Credit Parties and their Subsidiaries and
made its own decision to make its Loans and issue or participate in Letters of
Credit hereunder and enter into this Agreement. Each Lender also represents
that it will, independently and without reliance upon the Administrative Agent
or any other Lender, and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement
and 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 Borrowers or any Credit Party.
Except for notices, reports and other documents expressly required to be
furnished to the Lenders by the Administrative Agent hereunder or by the other
Loan Documents, 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, financial and other condition or
creditworthiness of the Borrowers or any of the Credit Parties which may come
into the possession of the Administrative Agent or any of its respective
officers, directors, employees, agents, attorneys-in-fact, Subsidiaries or
Affiliates.

     SECTION 13.7 Indemnification. The Lenders agree to indemnify the Administrative Agent in its capacity as
such and (to the extent not reimbursed by the Borrowers and without limiting
the obligation of the Borrowers to do so), ratably according to the respective
amounts of their Commitment Percentages from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind whatsoever which may at any
time (including, without limitation, at any time following the payment of the
Loans or any Reimbursement Obligation) be imposed on, incurred by or asserted
against the Administrative Agent in any way relating to or arising out of this
Agreement or the other Loan Documents, or any documents, reports or other
information provided to the Administrative Agent or any Lender or contemplated
by or referred to herein or therein or the transactions contemplated hereby or
thereby or any action taken or omitted by the Administrative 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
resulting solely from the Administrative Agent’s bad faith, gross negligence or
willful misconduct. The agreements in this Section shall survive the payment
of the Obligations and the termination of this Agreement.

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     SECTION 13.8 The Administrative Agent in Its Individual Capacity.
The Administrative Agent and its respective Subsidiaries and Affiliates may
make loans to, accept deposits from and generally engage in any kind of
business with the Borrowers as though the Administrative Agent were not the
Administrative Agent hereunder or under the other Loan Documents. With respect
to any Loans made or renewed by it and with respect to any Letter of Credit
issued by it or participated in by it, the Administrative 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 the Administrative
Agent, and the terms “Lender” and “Lenders” shall include the Administrative
Agent in its individual capacity.

     SECTION 13.9 Resignation of the Administrative Agent; Successor
Administrative Agent.

     (a) Subject to the appointment and acceptance of a successor as provided
below, Wachovia may resign as the Administrative Agent at any time by giving
thirty (30) days written notice thereof to the Lenders and the U.S. Borrower.
Upon the effectiveness of any such resignation, the Required Lenders shall
appoint from among the Lenders a successor administrative agent for the
Lenders, which successor administrative agent shall be consented to by the U.S.
Borrower at all times other than during the existence of an Event of Default
(which consent of the U.S. Borrower shall not be unreasonably withheld or
delayed). If no successor administrative agent shall have been so appointed by
the Required Lenders and shall have accepted such appointment within thirty
(30) days after the Administrative Agent’s giving of notice of resignation,
then the Administrative Agent may, on behalf of the Lenders, appoint a
successor administrative agent. Upon the acceptance of any appointment as
Administrative Agent hereunder by a successor administrative agent, such
successor administrative agent shall thereupon succeed to and become vested
with all rights, powers, privileges and duties of the retiring Administrative
Agent and the retiring Administrative Agent shall be discharged from its duties
and obligations hereunder without any other or further act or deed on the part
of such retiring Administrative Agent or any other Lender. After any retiring
Administrative Agent’s resignation hereunder as Administrative Agent, the
provisions of this Article XIII and Section 14.3 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. If no successor administrative
agent has accepted appointment as Administrative Agent by the date which is
thirty (30) 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 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.

     (b) Notwithstanding anything to the contrary contained herein, Wachovia
may, (i) upon thirty (30) days’ notice to the U.S. Borrower and the Lenders,
resign as Issuing Lender and/or (ii) upon thirty (30) days’ notice to the U.S.
Borrower, resign as Swingline Lender. In the event of any such resignation as
Issuing Lender or Swingline Lender, the U.S. Borrower shall be entitled to
appoint from among the Lenders a successor Issuing Lender or Swingline Lender
hereunder; provided that no failure by the U.S. Borrower to appoint any
such successor shall affect the resignation of Wachovia as Issuing Lender or
Swingline Lender, as the case may be. If Wachovia resigns as Issuing Lender,
it shall retain all the rights and obligations of the Issuing

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Lender hereunder
with respect to all Letters of Credit issued by it and outstanding as of the
effective date of its resignation as Issuing Lender and all L/C Obligations
with respect thereto, including the right to require the Lenders to make
Revolving Credit Loans or fund risk participations for unreimbursed amounts of
Letters of Credit pursuant to Section 3.4. If Wachovia resigns as
Swingline Lender, it shall retain all the rights of the Swingline Lender
provided for hereunder with respect to Swingline Loans made by it and
outstanding as of the effective date of such resignation, including the right
to require the Lenders to make Revolving Credit Loans or fund risk
participations in outstanding Swingline Loans pursuant to Section
2.3(b).

     SECTION 13.10 Guaranty Matters.

     (a) The Lenders irrevocably authorize the Administrative Agent, at its
option and in its discretion, to release any Subsidiary Guarantor from its
obligations under the Subsidiary Guaranty Agreement if such Person ceases to be
a Subsidiary as a result of a transaction permitted hereunder.

     (b) Upon request by the Administrative Agent at any time, the Required
Lenders will confirm in writing the Administrative Agent’s authority to release
any Subsidiary Guarantor from its obligations under the Subsidiary Guaranty
Agreement pursuant to this Section.

     SECTION 13.11 Other Agents, Arrangers and Managers. None of the
Lenders or other Persons identified on the facing page or signature pages of
this Agreement as a “syndication agent,” “documentation agent,” “co-agent,”
“book manager,” “lead manager,” “arranger,” “lead arranger” or “co-lead
arranger” shall have any right, power, obligation, liability, responsibility or
duty under this Agreement other than, in the case of such Lenders, those
applicable to all Lenders as such. Without limiting the foregoing, none of the
Lenders or other Persons so identified shall have or be deemed to have any
fiduciary relationship with any Lender. Each Lender acknowledges that it has
not relied, and will not rely, on any of the Lenders or other Persons so
identified in deciding to enter into this Agreement or in taking or not taking
action hereunder.

     SECTION 13.12 Hedging Counterparties. Each reference in this
Section 13 to a “Lender” includes, where the context so allows, such
Lender as agent of its Affiliate in the event that any Affiliate of it is party
to a Hedging Agreement.

     SECTION 13.13 Mandatory Cost Information. Each Lender shall supply
the Administrative Agent with any information required by the Administrative
Agent in order to calculate the Mandatory Cost in accordance with Schedule
1.1(a).

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ARTICLE XIV

MISCELLANEOUS

     SECTION 14.1 Notices.

     (a) Method of Communication. Except as otherwise provided in this
Agreement, all notices and communications hereunder shall be in writing (for
purposes hereof, the term “writing” shall include information in electronic
format such as electronic mail and internet web pages), or by telephone
subsequently confirmed in writing. Any notice shall be effective if delivered
by hand delivery or sent via electronic mail, posting on an internet web page,
telecopy, recognized overnight courier service or certified mail, return
receipt requested, and shall be presumed to be received by a party hereto (i)
on the date of delivery if delivered by hand or sent by electronic mail,
posting on an internet web page, telecopy, (ii) on the next Business Day if
sent by recognized overnight courier service and (iii) on the third (3rd)
Business Day following the date sent by certified mail, return receipt
requested. A telephonic notice to the Administrative Agent as understood by
the Administrative Agent will be deemed to be the controlling and proper notice
in the event of a discrepancy with or failure to receive a confirming written
notice.

     (b) Addresses for Notices. Notices to any party shall be sent to
it at the following addresses, or any other address as to which all the other
parties are notified in writing.

	 	 	 
	If to any Credit Party:

	 	PRA International
	

	 	12120 Sunset Hills Road, Suite 600
	

	 	Reston, VA 20190
	

	 	Attention: Chief Financial Officer with a copy to the
Chief Executive Officer
	

	 	Telephone No.: 703-464-6300
	

	 	Telecopy No.: 703-464-6305
	 
	 	 
	With a Copy to:

	 	Latham & Watkins LLP
	

	 	555 Eleventh Street, NW
	

	 	Suite 1000
	

	 	Washington, DC 20004-1304
	

	 	Attention: James F. Ritter, Esq.
	

	 	Telephone No.: 202-637-2200
	

	 	Telecopy No.: 202-637-2201

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	For all notices other than
	 	 
	Notices of Borrowing, to
	 	 
	Wachovia as
	 	 
	Administrative Agent:

	 	Wachovia Bank, National Association
	

	 	1753 Pinnacle Drive
	

	 	McLean, Virginia 22102
	

	 	Attention: Monica Sevila
	

	 	Telephone No.: (703) 760-5411
	

	 	Telecopy No.: (703) 760-6172
	 
	 	 
	For Notices of Borrowing,
	 	 
	to Wachovia as
	 	 
	Administrative Agent

	 	Wachovia Bank, National Association
	

	 	Charlotte Plaza, CP-8
	

	 	201 South College Street
	

	 	Charlotte, North Carolina 28288-0680
	

	 	Attention: Syndication Agency Services
	

	 	Telephone No.: (704) 374-2698
	

	 	Telecopy No.: (704) 383-0288
	 
	 	 
	If to any Lender:

	 	To the address set forth on the Register

     (c) Administrative Agent’s Office. The Administrative Agent hereby
designates its office located at the address set forth above, or any subsequent
office which shall have been specified for such purpose by written notice to
the U.S. Borrower and Lenders, as the Administrative Agent’s Office referred to
herein, to which payments due are to be made and at which Loans will be
disbursed and Letters of Credit requested.

     SECTION 14.2 Amendments, Waivers and Consents. Except as set forth below or as specifically provided in any Loan Document,
any term, covenant, agreement or condition of this Agreement or any of the
other Loan Documents may be amended or waived by the Lenders, and any consent
given by the Lenders, if, but only if, such amendment, waiver or consent is in
writing signed by the Required Lenders (or by the Administrative Agent with the
consent of the Required Lenders) and delivered to the Administrative Agent and,
in the case of an amendment, signed by the Parents and the Borrowers;
provided, that no amendment, waiver or consent shall:

     (a) waive any condition set forth in Section 5.2 without the
written consent of each Lender;

     (b) extend or increase the Commitment of any Lender (or reinstate any
Commitment terminated pursuant to Section 12.2) or the amount of Loans
of any Lender without the written consent of each Lender directly affected
thereby;

     (c) postpone any date fixed by this Agreement or any other Loan Document
for any payment or mandatory repayment of principal, interest, fees or other
amounts due to the Lenders

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(or any of them) hereunder or under any other Loan
Document without the written consent of each Lender directly affected thereby;

     (d) reduce the principal of, or the rate of interest specified herein on,
any Loan or Reimbursement Obligation, or (subject to clause (v) of the second
proviso to this Section) any fees or other amounts payable hereunder or under
any other Loan Document without the written consent of each Lender directly
affected thereby; provided that only the consent of the Required Lenders
shall be necessary (i) to waive any obligation of the Borrowers to pay interest
at the rate set forth in Section 4.1(c) during the continuance of an
Event of Default, or (ii) to amend any financial covenant hereunder (or any
defined term used therein) even if the effect of such amendment would be to
reduce the rate of interest on any Loan or to reduce any fee payable hereunder;

     (e) change Section 4.4 or Section 12.4 in a manner that
would alter the pro rata sharing of payments required thereby
without the written consent of each Lender directly affected thereby;

     (f) change any provision of this Section 14.2 or the definition of
“Required Lenders” or any other provision hereof specifying the number or
percentage of Lenders required to amend, waive or otherwise modify any rights
hereunder or make any determination or grant any consent hereunder, without the
written consent of each Lender; or

     (g) release all of the Subsidiary Guarantors or release Subsidiary
Guarantors comprising substantially all of the credit support for the
Obligations, in either case, from the Subsidiary Guaranty Agreement (other than
as authorized in Section 13.10), or release any Parent Guarantors from
the Unconditional Guaranty contained in Article XI herein, in each case without
the written consent of each Lender;

provided further, that (i) no amendment, waiver or consent shall,
unless in writing and signed by the applicable Issuing Lender in addition to
the Lenders required above, affect the rights or duties of such Issuing Lender
under this Agreement or any Letter of Credit Application relating to any Letter
of Credit issued or to be issued by it; (ii) no amendment, waiver or consent
shall, unless in writing and signed by the Swingline Lender in addition to the
Lenders required above, affect the rights or duties of the Swingline Lender
under this Agreement; (iii) no amendment, waiver or consent shall, unless in
writing and signed by the Canadian Dollar Lender in addition to the Lenders
required above, affect the rights or duties of the Canadian Dollar Lender under
this Agreement; (iv) no amendment, waiver or consent shall, unless in writing
and signed by the Administrative Agent in addition to the Lenders required
above, affect the rights or duties of the Administrative Agent under this
Agreement or any other Loan Document; and (v) the Fee Letter may be amended, or
rights or privileges thereunder waived, in a writing executed only by the
parties thereto. Notwithstanding anything to the contrary herein, no
Defaulting Lender shall have any right to approve or disapprove any amendment,
waiver or consent hereunder, except that the Commitment of such Lender may not
be increased or extended without the consent of such Lender.

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     SECTION 14.3 Expenses; Indemnity. The Borrowers will (a) pay all
reasonable and customary out-of-pocket expenses (including, without limitation,
all costs of electronic or internet distribution of any information hereunder)
of the Administrative Agent in connection with (i) the preparation, execution
and delivery of this Agreement and each other Loan Document, whenever the same
shall be executed and delivered, including, without limitation, all
out-of-pocket syndication and due diligence expenses and reasonable fees,
disbursements and other charges of counsel for the Administrative Agent and
(ii) the preparation, execution and delivery of any waiver, amendment or
consent by the Administrative Agent or the Lenders relating to this Agreement
or any other Loan Document, including, without limitation, reasonable fees and
disbursements of counsel to the Administrative Agent (which shall be limited to
one counsel per jurisdiction of formation of the Borrowers), (b) pay all
reasonable and customary out-of-pocket expenses of the Administrative Agent and
each Lender actually incurred in connection with the administration and
enforcement of any rights and remedies of the Administrative Agent and Lenders
under the Credit Facility, including, without limitation, in connection with
any workout, restructuring, bankruptcy or other similar proceeding, creating
and perfecting Liens in favor of Administrative Agent on behalf of Lenders,
enforcing any Obligations of, or collecting any payments due from, the
Borrowers or any Subsidiary Guarantor by reason of an Event of Default
(including in connection with the sale of, collection from, or other
realization upon any collateral or the enforcement of the Subsidiary Guaranty
Agreement); consulting with appraisers, accountants, engineers, attorneys and
other Persons concerning the nature, scope or value of any right or remedy of
the Administrative Agent or any Lender hereunder or under any other Loan
Document or any factual matters in connection therewith, which expenses shall
include without limitation the reasonable fees and disbursements of such
Persons, (c) any civil penalty or fine assessed by the U. S. Department of the
Treasury’s Office of Foreign Assets Control against, and all reasonable,
out-of-pocket costs and expenses (including counsel fees and disbursements)
incurred in connection with defense thereof by the Administrative Agent or any
Lender as a result of the funding of Loans, the issuance of Letters of Credit,
the acceptance of payments or of collateral due under the Loan Documents and
(d) defend, indemnify and hold harmless the Administrative Agent and the
Lenders, and their respective parents, Subsidiaries, Affiliates, partners,
employees, agents, officers, advisors and directors, from and against any
losses, penalties, fines, liabilities, settlements, damages, costs and
expenses, suffered by any such Person arising out of or in connection with any
claim (including, without limitation, any Environmental Claims), investigation,
litigation or other proceeding (whether or not the Administrative Agent or any
Lender is a party thereto) and the prosecution and defense thereof, arising out
of or in any way connected with the Loans, this Agreement, any other Loan
Document, or any documents, reports or other information provided to the
Administrative Agent or any Lender or contemplated by or referred to herein or
therein or the transactions contemplated hereby or thereby, including, without
limitation, reasonable attorney’s and consultant’s fees, except to the extent
that any of the foregoing (a) are determined by a court of competent
jurisdiction by a final and nonappealable judgment to have resulted directly
from the gross negligence or willful misconduct of the party seeking
indemnification therefor or (b) result from a claim brought by any Credit Party
against an indemnitee for breach in bad faith of the obligations under this
Agreement or the other Loan Documents of the party seeking indemnification if
such Credit Party has obtained a final and nonappealable judgment in its favor
on such claim as determined by a court of competent jurisdiction.

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     SECTION 14.4 Set-off. (a) If an Event of Default shall have
occurred and be continuing, each Lender, each Issuing Lender, the Canadian
Dollar Lender, the Swingline Lender and each of their respective Affiliates, is
hereby authorized at any time and from time to time, to the fullest extent
permitted by Applicable Law, to set off and apply any and all deposits (general
or special, time or demand, provisional or final, in whatever currency, but
excluding trust accounts expressly prohibiting any such set-off rights) at any
time held and other obligations (in whatever currency) at any time owing by
such Lender, such Issuing Lender, the Canadian Dollar Lender, the Swingline
Lender or any such Affiliate to or for the credit or the account of the
Borrowers or any other Credit Party against any and all of the obligations of
the Borrowers or such Credit Party now or hereafter existing under this
Agreement or any other Loan Document to such Lender, such Issuing Lender, the
Canadian Dollar Lender or the Swingline Lender, irrespective of whether or not
such Lender, such Issuing Lender, the Canadian Dollar Lender or the Swingline
Lender shall have made any demand under this Agreement or any other Loan
Document and although such obligations of the Borrowers or such Credit Party
may be contingent or unmatured or are owed to a branch or office of such
Lender, the Issuing Lender, the Canadian Dollar Lender or the Swingline Lender
different from the branch or office holding such deposit or obligated on such
indebtedness. The rights of each Lender, each Issuing Lender, the Canadian
Dollar Lender, the Swingline Lender and their respective Affiliates under this
Section are in addition to other rights and remedies (including other rights of
setoff) that such Lender, such the Issuing Lender, the Canadian Dollar Lender,
the Swingline Lender or their respective Affiliates may have. Each Lender,
each Issuing Lender, the Canadian Dollar Lender and the Swingline Lender agrees
to notify the Borrowers and the Administrative Agent promptly after any such
setoff and application; provided that the failure to give such notice
shall not affect the validity of such setoff and application.

     (b) Any amount to be set-off pursuant to Section 14.4(a) shall be
denominated in Dollars and any amount denominated in an Alternative Currency
shall be in an amount equal to the Dollar Amount of such amount at the most
favorable spot exchange rate determined by the
Administrative Agent to be available to it; provided that if at the time
of any such determination no such spot exchange rate can reasonably be
determined, the Administrative Agent may use any reasonable method as it deems
applicable to determine such rate, any such determination to be conclusive
absent manifest error.

     (c) Each Lender and any assignee or participant of such Lender in
accordance with Section 14.11 are hereby authorized by the Borrower to
combine currencies, as deemed necessary by such Person, in order to effect any
set-off pursuant to Section 14.4(a).

     SECTION 14.5 Governing Law. This Agreement and the other Loan
Documents, unless otherwise expressly set forth therein, shall be governed by,
construed and enforced in accordance with the laws of the State of New York,
including Section 5-1401 and Section 5-1402 of the General Obligation Law of
the State of New York, without reference to any other conflicts of law
principles thereof.

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     SECTION 14.6 Jurisdiction and Venue.

     (a) Jurisdiction. The Credit Parties hereby irrevocably consent to
the personal jurisdiction of the state and federal courts located in New York,
New York (and any courts from which an appeal from any of such courts must or
may be taken), in any action, claim or other proceeding arising out of any
dispute in connection with this Agreement and the other Loan Documents, any
rights or obligations hereunder or thereunder, or the performance of such
rights and obligations. The Credit Parties hereby irrevocably consent to the
service of a summons and complaint and other process in any action, claim or
proceeding brought by the Administrative Agent or any Lender in connection with
this Agreement or the other Loan Documents, any rights or obligations hereunder
or thereunder, or the performance of such rights and obligations, on behalf of
itself or its property, in the manner specified in Section 14.1.
Nothing in this Section shall affect the right of the Administrative Agent or
any Lender to serve legal process in any other manner permitted by Applicable
Law or affect the right of the Administrative Agent or any Lender to bring any
action or proceeding against the Credit Parties or their respective properties
in the courts of any other jurisdictions.

     (b) Venue. The Credit Parties hereby irrevocably waive any
objection they may have now or in the future to the laying of venue in the
aforesaid jurisdictions in any action, claim or other proceeding arising out of
or in connection with this Agreement, any other Loan Document or the rights and
obligations of the parties hereunder or thereunder. The Credit Parties
irrevocably waive, in connection with such action, claim or proceeding, any
plea or claim that the action, claim or other proceeding has been brought in an
inconvenient forum.

     (c) Appointment of the U.S. Borrower as Agent for the Borrowers.
Each Credit Party hereby irrevocably appoints and authorizes the U.S. Borrower
to act as its agent for service of process and notices required to be delivered
under this Agreement or under the other Loan Documents, it being understood and
agreed that receipt by the U.S. Borrower of any summons, notice or other
similar item shall be deemed effective receipt by each Credit Party and its
Subsidiaries.

     SECTION 14.7 Waiver of Jury Trial.

     (a) Jury Trial. THE ADMINISTRATIVE AGENT, EACH LENDER AND EACH
CREDIT PARTY HEREBY IRREVOCABLY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL
WITH RESPECT TO ANY ACTION, CLAIM OR OTHER PROCEEDING ARISING OUT OF ANY
DISPUTE IN CONNECTION WITH THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS, ANY
RIGHTS OR OBLIGATIONS HEREUNDER OR THEREUNDER, OR THE PERFORMANCE OF SUCH
RIGHTS AND OBLIGATIONS.

     (b) Preservation of Certain Remedies. The parties hereto and the
other Loan Documents preserve, without diminution, certain remedies that such
Persons may employ or exercise freely, either alone, in conjunction with or
during a Dispute. Each such Person shall have and hereby reserves the right to
proceed in any court of proper jurisdiction or by self help to exercise or
prosecute the following remedies, as applicable: (i) all rights to foreclose
against any

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real or personal property or other security by exercising a power
of sale granted in the Loan Documents or under Applicable Law or by judicial
foreclosure and sale, including a proceeding to confirm the sale, (ii) all
rights of self help including peaceful occupation of property and collection of
rents, set off, and peaceful possession of property, (iii) obtaining
provisional or ancillary remedies including injunctive relief, sequestration,
garnishment, attachment, appointment of receiver and in filing an involuntary
bankruptcy proceeding, and (iv) when applicable, a judgment by confession of
judgment. Preservation of these remedies does not limit the power of an
arbitrator to grant similar remedies that may be requested by a party in a
Dispute.

     SECTION 14.8 Reversal of Payments. To the extent a Borrower makes
a payment or payments to the Administrative Agent for the ratable benefit of
the Lenders or the Administrative Agent receives any payment or proceeds of the
collateral which payments or proceeds or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside and/or
required to be repaid to a trustee, receiver or any other party under any
bankruptcy law, state, provincial or federal law, common law or equitable
cause, then, to the extent of such payment or proceeds repaid, the Obligations
or part thereof intended to be satisfied shall be revived and continued in full
force and effect as if such payment or proceeds had not been received by the
Administrative Agent.

     SECTION 14.9 Injunctive Relief; Punitive Damages.

     (a) The Credit Parties recognize that, in the event the Credit Parties
fail to perform, observe or discharge any of their obligations or liabilities
under this Agreement, any remedy of law may prove to be inadequate relief to
the Administrative Agent’s and the Lenders. Therefore, the Credit Parties
agree that the Administrative Agent’s and the Lenders, at the Administrative
Agent’s and the Lenders’ option, shall be entitled to temporary and permanent
injunctive relief in any such case without the necessity of proving actual
damages.

     (b) The Administrative Agent, the Lenders and each Credit Party hereto (on
behalf of itself and the Credit Parties) hereby agree that no such Person shall
have a remedy of punitive or exemplary damages against any other party to a
Loan Document and each such Person hereby waives any right or claim to punitive
or exemplary damages that they may now have or may arise in the future in
connection with any Dispute, whether such Dispute is resolved through
arbitration or judicially.

     SECTION 14.10 Accounting Matters. If at any time any change in
GAAP would affect the computation of any financial ratio or requirement set
forth in any Loan Document, and either the Borrowers or the Required Lenders
shall so request, the Administrative Agent, the Lenders and the Borrowers shall
negotiate in good faith to amend such ratio or requirement to preserve the
original intent thereof in light of such change in GAAP (subject to the
approval of the Required Lenders); provided that, until so amended, (i)
such ratio or requirement shall continue to be computed in accordance with GAAP
prior to such change therein and (ii) the Borrowers shall provide to the
Administrative Agent and the Lenders financial statements and other documents
required under this Agreement or as reasonably requested hereunder setting

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forth a reconciliation between calculations of such ratio or requirement made
before and after giving effect to such change in GAAP.

     SECTION 14.11 Successors and Assigns; Participations.

     (a) Successors and Assigns Generally. The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby, except that no
Borrower nor any other Credit Party may assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of the
Administrative Agent and each Lender and no Lender may assign or otherwise
transfer any of its rights or obligations hereunder except (i) to an Eligible
Assignee in accordance with the provisions of subsection (b) of this Section,
(ii) by way of participation in accordance with the provisions of subsection
(d) of this Section or (iii) by way of pledge or assignment of a security
interest subject to the restrictions of subsection (f) of this Section (and any
other attempted assignment or transfer by any party hereto shall be null and
void). Nothing in this Agreement, expressed or implied, shall be construed to
confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby, Participants to the extent provided in
subsection (d) of this Section and, to the extent expressly contemplated
hereby, the Related Parties of each of the Administrative Agent and the
Lenders) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

     (b) Assignments by Lenders. Any Lender may at any time assign to
one or more Eligible Assignees all or a portion of its rights and obligations
under this Agreement (including all or a portion of its Commitment and the
Loans at the time owing to it); provided that

          (i) except in the case of an assignment of the entire remaining amount of
the assigning Lender’s Commitment and the Loans at the time owing to it or in
the case of an assignment to a Lender or an Affiliate of a Lender or an
Approved Fund with respect to a
Lender, the aggregate amount of the Commitment (which for this purpose includes
Loans outstanding thereunder) or, if the applicable Commitment is not then in
effect, the principal outstanding balance of the Loans of the assigning Lender
subject to each such assignment (determined as of the date the Assignment and
Assumption with respect to such assignment is delivered to the Administrative
Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of
the Trade Date) shall not be less than $5,000,000, in the case of any
assignment, unless such assignment is made to an existing Lender, to an
Affiliate thereof, or to an Approved Fund, in which case no minimum amount
shall apply, unless each of the Administrative Agent and, so long as no Default
or Event of Default has occurred and is continuing, the Company, otherwise
consent (each such consent not to be unreasonably withheld or delayed);
provided that the Company shall be deemed to have given its consent five
(5) Business Days after the date written notice thereof has been delivered by
the assigning Lender (through the Administrative Agent) unless such consent is
expressly refused by the Company prior to such fifth (5th) Business Day;

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

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          (iii) any assignment of a Commitment must be approved by the
Administrative Agent, the Canadian Dollar Lender, the Swingline Lender and the
Issuing Lenders unless the Person that is the proposed assignee is itself a
Lender with a Commitment (whether or not the proposed assignee would otherwise
qualify as an Eligible Assignee); and

          (iv) 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 the Eligible Assignee, if it shall not be a
Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire.

Subject to acceptance and recording thereof by the Administrative Agent
pursuant to subsection (c) of this Section, from and after the effective date
specified in each Assignment and Assumption, the Eligible Assignee thereunder
shall be a party to this Agreement 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 and obligations of Sections
4.10, 4.11, 4.12, 4.13 and 14.14 with respect
to facts and circumstances occurring prior to the effective date of such
assignment. Any assignment or transfer by a Lender of rights or obligations
under this Agreement that does not comply with this subsection 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 subsection (d) of this Section.

     (c) Register. The Administrative Agent, acting solely for this
purpose as an agent of the U.S. Borrower, shall maintain at one of its offices
in Charlotte, North Carolina, 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 Commitments
of, and principal amounts of the 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 U.S. 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. The Register shall be
available for inspection by the U.S. Borrower and any Lender, solely to the
extent of any entries applicable to such Lender, at any reasonable time and
from time to time upon reasonable prior notice.

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

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     Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; provided that such agreement or
instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver or modification
described in the Section 14.2 that directly affects such Participant.
Subject to subsection (e) of this Section, the Borrowers agree that each
Participant shall be entitled to the benefits of Sections 4.10,
4.11, 4.12 and 4.13 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to subsection (b)
of this Section. To the extent permitted by law, each Participant also shall
be entitled to the benefits of Section 14.4 as though it were a Lender,
provided such Participant agrees to be subject to Section 4.7 as though
it were a Lender.

     (e) Limitations upon Participant Rights. A Participant shall not
be entitled to receive any greater payment under Sections 4.12 and
4.13 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 U.S. Borrower’s prior
written consent. A Participant that would be a Foreign Lender if it were a
Lender shall not be entitled to the benefits of Section 4.13 unless the
U.S. Borrower is notified of the participation sold to such Participant and
such Participant agrees, for the benefit of the U.S. Borrower, to comply with
Section 4.13(e) as though it were a Lender.

     (f) Certain Pledges. 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 without limitation any pledge or
assignment to secure obligations to a Federal Reserve Bank; provided
that no such pledge or assignment shall release such
Lender from any of its obligations hereunder or substitute any such
pledgee or assignee for such Lender as a party hereto.

     SECTION 14.12 Confidentiality. Each of the Administrative Agent
and the Lenders agrees to maintain the confidentiality of the Information (as
defined below), except that Information may be disclosed (a) to its and its
Affiliates’ directors, officers, employees and agents, including accountants,
legal counsel and other advisors (it being understood that the Persons to whom
such disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (b) in
accordance with the Administrative Agent’s regulatory compliance policy, to the
extent requested by, or required to be disclosed to, in accordance with the
Administrative Agent’s regulatory compliance policy, any rating agency, or
regulatory or similar authority (including any self-regulatory authority, such
as the National Association of Insurance Commissioners), (c) to the extent
required by applicable laws or regulations or by any subpoena or similar legal
process, (d) to any other party hereto, (e) in connection with the exercise of
any remedies under this Agreement or under any other Loan Document (or any
Hedging Agreement with a Lender or the Administrative Agent) or any action or
proceeding relating to this Agreement or any other Loan Document (or any
Hedging Agreement with a Lender or the Administrative Agent) or the enforcement
of rights hereunder or thereunder, (f) subject to an agreement containing
provisions substantially the same as those of this Section, to (i) any
purchasing Lender, proposed purchasing Lender, Participant or proposed
Participant or (ii) any actual or prospective counterparty (or its advisors) to
any swap or derivative transaction relating to any Borrower and its
obligations, (g) with the consent of the

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Company, (h) to Gold Sheets and
other similar bank trade publications, such information to consist of deal
terms and other information customarily found in such publications, or (i) to
the extent such Information (x) becomes publicly available other than as a
result of a breach of this Section or (y) becomes available to the
Administrative Agent or any Lender on a nonconfidential basis from a source
other than the Borrowers. For purposes of this Section, “Information”
means all information received from any Credit Party relating to any Credit
Party or any of their respective businesses, other than any such information
that is available to the Administrative Agent or any Lender on a
nonconfidential basis prior to disclosure by any Credit Party; provided
that, in the case of information received from a Credit Party after the date
hereof, such information is clearly identified at the time of delivery as
confidential. Any Person required to maintain the confidentiality of
Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of
care to maintain the confidentiality of such Information as such Person would
accord to its own confidential information.

     SECTION 14.13 Acknowledgement. Each of the parties hereto is aware
of the restrictions imposed by the United States securities laws on the
purchase or sale of securities by any person who has received material,
non-public information from the issuer of such securities and on the
communication of such information to any other person when it is reasonably
foreseeable that such other person is likely to purchase or sell such
securities in reliance upon such information. Each of the parties hereto
acknowledges and understands that (i) the federal securities laws, in addition
to applicable state laws, prohibit any person from trading in any security on
the basis of material nonpublic information about the
security or its issuer; (ii) information should be regarded as material if
there is a likelihood that it would be considered important by an investor in
making a decision regarding the purchase or sale of a security; (iii) theses
laws apply to all person who possess, or have access to, material nonpublic
information concerning an issuer or its securities; (iv) the information
includes, or may include, material non-public information about the Company and
its Subsidiaries; and (v) violation of such federal and state laws can result
in sever civil and criminal penalties.

     SECTION 14.14 Performance of Duties. Each of the Credit Party’s
obligations under this Agreement and each of the other Loan Documents shall be
performed by such Credit Party at its sole cost and expense.

     SECTION 14.15 All Powers Coupled with Interest. All powers of
attorney and other authorizations granted to the Lenders, the Administrative
Agent and any Persons designated by the Administrative Agent or any Lender
pursuant to any provisions of this Agreement or any of the other Loan Documents
shall be deemed coupled with an interest and shall be irrevocable so long as
any of the Obligations remain unpaid or unsatisfied, any of the Commitments
remain in effect or the Credit Facility has not been terminated.

     SECTION 14.16 Survival of Indemnities. Notwithstanding any
termination of this Agreement, the indemnities to which the Administrative
Agent and the Lenders are entitled under the provisions of this Article
XIV and any other provision of this Agreement and the other Loan Documents
shall continue in full force and effect and shall protect the Administrative
Agent and the Lenders against events arising after such termination as well as
before.

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     SECTION 14.17 Titles and Captions. Titles and captions of
Articles, Sections and subsections in, and the table of contents of, this
Agreement are for convenience only, and neither limit nor amplify the
provisions of this Agreement.

     SECTION 14.18 Severability of Provisions. Any provision of this
Agreement or any other Loan Document which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective only to the
extent of such prohibition or unenforceability without invalidating the
remainder of such provision or the remaining provisions hereof or thereof or
affecting the validity or enforceability of such provision in any other
jurisdiction.

     SECTION 14.19 Counterparts. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and shall be binding upon all parties, their successors and assigns, and all of
which taken together shall constitute one and the same agreement.

     SECTION 14.20 Integration. This Agreement, together with the other Loan Documents, comprises the
complete and integrated agreement of the parties on the subject matter hereof
and thereof and supersedes all prior agreements, written or oral, on such
subject matter. In the event of any conflict between the provisions of this
Agreement and those of any other Loan Document, the provisions of this
Agreement shall control; provided that the inclusion of supplemental
rights or remedies in favor of the Administrative Agent or the Lenders in any
other Loan Document shall not be deemed a conflict with this Agreement. Each
Loan Document was drafted with the joint participation of the respective
parties thereto and shall be construed neither against nor in favor of any
party, but rather in accordance with the fair meaning thereof.

     SECTION 14.21 Term of Agreement. This Agreement shall remain in
effect from the Closing Date through and including the date upon which all
Obligations arising hereunder or under any other Loan Document shall have been
indefeasibly and irrevocably paid and satisfied in full and all Commitments
have been terminated. No termination of this Agreement shall affect the rights
and obligations of the parties hereto arising prior to such termination or in
respect of any provision of this Agreement which survives such termination.

     SECTION 14.22 Advice of Counsel, No Strict Construction. Each of
the parties represents to each other party hereto that it has discussed this
Agreement with its counsel. The parties hereto have participated jointly in
the negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the parties hereto and no presumption or burden of
proof shall arise favoring or disfavoring any party by virtue of the authorship
of any provisions of this Agreement.

     SECTION 14.23 Inconsistencies with Other Documents; Independent Effect
of Covenants.

     (a) In the event there is a conflict or inconsistency between this
Agreement and any other Loan Document, the terms of this Agreement shall
control; provided that any provision of

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the Security Documents which
imposes additional burdens on any Credit Party or its Subsidiaries or further
restricts the rights of any Credit Party or its Subsidiaries or gives the
Administrative Agent or Lenders additional rights shall not be deemed to be in
conflict or inconsistent with this Agreement and shall be given full force and
effect.

     (b) The Credit Parties expressly acknowledge and agree that each covenant
contained in Articles VIII, IX, or X hereof shall be given
independent effect. Accordingly, the Credit Parties shall not engage in any
transaction or other act otherwise permitted under any covenant contained in
Articles VIII, IX, or X if, before or after giving effect
to such transaction or act, the Credit Parties shall or would be in breach of
any other covenant contained in Articles VIII, IX, or X.

     SECTION 14.24 Continuity of Contract. The parties hereto agree that the occurrence or non-occurrence of EMU, any
event or events associated with EMU and/or the introduction of the euro in all
or any part of the European Union (a) will not result in the discharge,
cancellation, rescission or termination in whole or in part of this Agreement
or any other Loan Document, (b) will not give any party the right to cancel,
rescind, terminate or vary this Agreement or any other Loan Document or (c)
will not give rise to an Event of Default, in each case other than as
specifically provided in this Agreement.

     SECTION 14.25 Language. The parties acknowledge that they have
required that this agreement and all related documents be drawn up in English.
Les parties reconnaissent avoir exigé que la présente convention et tous les
documents connexes soient rédigés en anglais.

     SECTION 14.26 USA Patriot Act. The Administrative Agent and each
Lender hereby notifies the Company and its Subsidiaries 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 Credit parties, which information
includes the name and address of Credit Parties and other information that will
allow such Lender to identify such Credit Parties in accordance with the Act.

[Signature pages to follow]

113

 

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

	 	 	 	 	 
	 	PRA INTERNATIONAL, a Delaware corporation,

as Company and a Parent Guarantor

 	 
	 	By:  	/s/ Patrick K. Donnelly
 	 
	 	 	Name:  	Patrick K. Donnelly 	 
	 	 	Title:  	President and Treasurer 	 
	 

	 	 	 	 	 
	 	PRA SUB, INC., a Delaware corporation, as a

Parent Guarantor

 	 
	 	By:  	/s/ Patrick K. Donnelly
 	 
	 	 	Name:  	Patrick K. Donnelly 	 
	 	 	Title:  	President and Treasurer 	 
	 

	 	 	 	 	 
	 	PRA INTERNATIONAL OPERATIONS, INC., a

Delaware corporation, as a Parent Guarantor

 	 
	 	By:  	/s/ Patrick K. Donnelly
 	 
	 	 	Name:  	Patrick K. Donnelly 	 
	 	 	Title:  	President and Treasurer 	 
	 

	 	 	 	 	 
	 	PHARMACEUTICAL RESEARCH ASSOCIATES, INC., a
Virginia
corporation, as U.S. Borrower

 	 
	 	By:  	/s/ Patrick K. Donnelly
 	 
	 	 	Name:  	Patrick K. Donnelly 	 
	 	 	Title:  	President and Treasurer 	 
	 

	 	 	 	 	 

[Signature Pages Continue]

[Credit Agreement — PRA International]

 

 

	 	 	 	 	 
	 	PHARMACEUTICAL RESEARCH ASSOCIATES
INTERNATIONAL, INC., a company organized
under the laws of Canada, as Canadian
Borrower

 	 
	 	By:  	/s/ Patrick K. Donnelly
 	 
	 	 	Name:  	Patrick K. Donnelly 	 
	 	 	Title:  	President and Treasurer 	 

	 	 	 	 	 
	 	PHARMACEUTICAL RESEARCH ASSOCIATES, GmbH.,
a company organized under the laws of
Germany, as German Borrower

 	 
	 	By:  	/s/ Norbert Bender
 	 
	 	 	Name:  	Norbert Bender 	 
	 	 	Title:  	Director 	 

	 	 	 	 	 
	 	PHARM RESEARCH ASSOCIATES (UK) LIMITED, a
company organized under the laws of England
and Wales, as UK Borrower

 	 
	 	By:  	/s/ Patrick K. Donnelly
 	 
	 	 	Name:  	Patrick K. Donnelly 	 
	 	 	Title:  	President and Treasurer 	 
	 

[Signature Pages Continue]

[Credit Agreement — PRA International]

 

 

	 	 	 	 	 
	 	AGENTS AND LENDERS:

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Administrative Agent, Swingline Lender,

Issuing Lender and Lender

 	 
	 	 	 
	 	 	 
	 	 	 
	 

[Signature Pages Continue]

[Credit Agreement — PRA International]

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as
Lender

 	 
	 	 	 
	 	 	 
	 	 	 
	 

[Signature Pages Continue]

[Credit Agreement — PRA International]

 

 

	 	 	 	 	 
	 	CANADIAN IMPERIAL BANK OF COMMERCE,
as
Canadian Dollar Lender

 	 
	 	 	 
	 	 	 
	 	 	 
	 

[Credit Agreement — PRA International]

 

 

	 	 	 	 	 
	 	CIBC INC.,

as Lender

 	 
	 	 	 
	 	 	 
	 	 	 
	 

[Credit Agreement — PRA International]

 

 

	 	 	 	 	 
	 	 LASALLE BANK NATIONAL ASSOCIATION, as
Lender

 	 
	 	 	 
	 	 	 
	 	 	 
	 

[Credit Agreement — PRA International]

 

 

	 	 	 	 	 
	 	 KEYBANK NATIONAL ASSOCIATION,

as Lender

 	 
	 	 	 
	 	 	 
	 	 	 
	 

[Credit Agreement — PRA International]

 

 

Schedule 1.1(a)

To Credit Agreement

Mandatory Cost Formulae

	1.	 	The Mandatory Cost is an addition to the interest rate to compensate
Lenders for the cost of compliance with (a) the requirements of the Bank
of England and/or the United Kingdom’s Financial Services Authority (the
“Financial Services Authority”) (or, in either case, any other authority
which replaces all or any of its functions) or (b) the requirements of the
European Central Bank.
	 
	2.	 	On the first day of each Interest Period (or as soon as possible
thereafter), the Administrative Agent shall calculate, as a percentage
rate, a rate (the “Additional Cost Rate”) for each Lender in accordance
with the paragraphs set out below. The Mandatory Cost will be calculated
by the Administrative Agent as a weighted average of the Lenders’
Additional Cost Rates (weighted in proportion to the percentage
participation of each Lender in the relevant Loan) and will be expressed
as a percentage rate per annum.
	 
	3.	 	The Additional Cost Rate for any Lender lending from a Lending Office in
a Participating Member State will be the percentage notified by that
Lender to the Administrative Agent. This percentage will be certified by
that Lender in its notice to the Administrative Agent to be its reasonable
determination of the cost (expressed as a percentage of that Lender’s
participation in all Loans made from that Lending Office) of complying
with the minimum reserve requirements of the European Central Bank in
respect of loans made from that Lending Office.
	 
	4.	 	The Additional Cost Rate for any Lender lending from a Lending Office in
the United Kingdom will be calculated by the Administrative Agent as
follows:

	 	(a)	 	in relation to a Loan denominated in Pounds Sterling:

	 	 	 
	AB +
C(B - D) + E x 0.01

100 - (A + C)	 	
percent per annum

	 	(b)	 	in relation to a Loan denominated in any currency other than
Pounds Sterling:

	 	 	 
	E x 0.01

300	 	
percent per annum.

	 	 	Where:

	 	A	 	is the percentage of Eligible Liabilities (assuming these to
be in excess of any stated minimum) which that Lender is from time
to time required to maintain as an interest free cash ratio deposit
with the Bank of England to comply with cash ratio requirements.

 

 

	 	B	 	is the percentage rate of interest (excluding the Applicable
Margin and Mandatory Cost and, if the same would otherwise apply,
the additional Default Rate) payable for the relevant Interest
Period on the relevant Loan.
	 
	 	C	 	is the percentage (if any) of Eligible Liabilities which that
Lender is required from time to time to maintain as interest bearing
Special Deposits with the Bank of England.
	 
	 	D	 	is the percentage rate per annum payable by the Bank of
England to the Administrative Agent on interest bearing Special
Deposits.
	 
	 	E	 	is designed to compensate Lenders for amounts payable under
the Fees Rules and is calculated by the Administrative Agent as
being the average of the most recent rates of charge supplied by the
Reference Banks to the Administrative Agent pursuant to paragraph 7
below and expressed in pounds per £1,000,000.

	5.	 	For the purposes of this Schedule 1.01(e):

	 	(a)	 	“Eligible Liabilities” has the meaning given to it from time
to time under or pursuant to the Bank of England Act 1998 or (as may
be appropriate) by the Bank of England;
	 
	 	(b)	 	“Fees Rules” means the rules on periodic fees contained in
the FSA Supervision Manual or such other law or regulation as may be
in force from time to time in respect of the payment of fees for the
acceptance of deposits;
	 
	 	(c)	 	“Fee Tariffs” means the fee tariffs specified in the Fees
Rules under the activity group A.1 Deposit acceptors (ignoring any
minimum fee or zero rated fee required pursuant to the Fees Rules
but taking into account any applicable discount rate);
	 
	 	(d)	 	“Reference Banks” means the principal London Office of
Wachovia Bank, National Association or such other bank as may be
appointed by the Administrative Agent after consultation with the
Borrower;
	 
	 	(e)	 	“Special Deposits” has the meanings given to it from time to
time under or pursuant to the Bank of England Act 1998 or (as may be
appropriate) by the Bank of England; and
	 
	 	(f)	 	“Tariff Base” has the meaning given to it in, and will be
calculated in accordance with, the Fees Rules.

	6.	 	In application of the above formulae, A, B, C and D will be included in
the formulae as percentages (i.e., 5 percent will be included in the
formula as 5 and not as 0.05). A negative result obtained by subtracting
D from B shall be taken as zero. The resulting figures shall be rounded
to four decimal places.

 

 

	7.	 	If requested by the Administrative Agent, each Reference Bank shall, as
soon as practicable after publication by the Financial Services Authority,
supply to the Administrative Agent the rate of charge payable by that
Reference Bank to the Financial Services Authority pursuant to the Fees
Rules in respect of the relevant financial year of the Financial Services
Authority (calculated for this purpose by that Reference Bank as being the
average of the Fee Tariffs applicable to that Reference Bank for that
financial year) and expressed in pounds per £1,000,000 of the Tariff Base
of that Reference Bank.

     8. Each Lender shall supply any information required by the Administrative
Agent for the purpose of calculating its Additional Cost Rate. In
particular, but without limitation, each Lender shall supply the following
information on or prior to the date on which it becomes a Lender:

	 	(a)	 	the jurisdiction of its Lending Office; and
	 
	 	(b)	 	any other information that the Administrative Agent may
reasonably require for such purpose.

	 	 	Each Lender shall promptly notify the Administrative Agent of any change
to the information provided by it pursuant to this paragraph.
	 
	9.	 	The percentages of each Lender for the purpose of A and C above and the
rates of charge of each Reference Bank for the purpose of E above shall be
determined by the Administrative Agent based upon the information supplied
to it pursuant to paragraphs 7 and 8 above and on the assumption that,
unless a Lender notifies the Administrative Agent to the contrary, each
Lender’s obligations in relation to cash ratio deposits and Special
Deposits are the same as those of a typical bank from its jurisdiction of
incorporation with a Lending Office in the same jurisdiction as its
Lending Office.
	 
	10.	 	The Administrative Agent shall have no liability to any person if such
determination results in an Additional Cost Rate which over or under
compensates any Lender and shall be entitled to assume that the
information provided by any Lender or Reference Bank pursuant to
paragraphs 3, 7 and 8 above is true and correct in all respects.
	 
	11.	 	The Administrative Agent shall distribute the additional amounts received
as a result of the Mandatory Cost to the Lenders on the basis of the
Additional Cost Rate for each Lender based on the information provided by
each Lender and each Reference Bank pursuant to paragraphs 3, 7 and 8
above.
	 
	12.	 	Any determination by the Administrative Agent pursuant to this Schedule
1.01(e) in relation to a formula, the Mandatory Cost, an Additional Cost
Rate or any amount payable to a Lender shall, in the absence of manifest
error, be conclusive and binding on all parties.
	 
	13.	 	The Administrative Agent may from time to time, after consultation with
the Borrower and the Lenders, determine and notify to all parties of any
amendments which are

 

 

	 	 	required to be made to this Schedule 1.01(e) in order to comply with any
change in law, regulation or any requirements from time to time imposed
by the Bank of England, the Financial Services Authority or the European
Central Bank (or, in any case, any other authority which replaces all or
any of its functions) and any such determination shall, in the absence of
manifest error, be conclusive and binding on all parties.

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