Document:

Exhibit
4.2

CREDIT AND
GUARANTY AGREEMENT

dated as of October 13, 2006

among

SANMINA–SCI CORPORATION,

CERTAIN SUBSIDIARIES OF SANMINA–SCI CORPORATION,

as Guarantors,

VARIOUS LENDERS,

CITIBANK, N.A.,

as Syndication Agent

DEUTSCHE BANK AG CAYMAN ISLANDS BRANCH,

as Documentation Agent

BANC OF AMERICA SECURITIES LLC

CITIGROUP GLOBAL MARKETS INC., and

DEUTSCHE BANK SECURITIES INC.

as Joint Book Managers and Joint Lead Arrangers

and

BANK OF AMERICA, N.A.

as Administrative Agent

$600.0 Million Senior Unsecured Credit
Facility

 

TABLE OF
CONTENTS

	
  

  	
  Page

  
	
   

  	
   

  
	
  SECTION 1 DEFINITIONS AND INTERPRETATION

  	
  1

  
	
   

  	
   

  
	
  Section 1.1
  Definitions

  	
  1

  
	
   

  	
   

  
	
  Section 1.2
  Accounting Terms

  	
  36

  
	
   

  	
   

  
	
  Section 1.3
  Interpretation, Etc

  	
  37

  
	
   

  	
   

  
	
  SECTION 2 LOANS

  	
  37

  
	
   

  	
   

  
	
  Section 2.1
  Loans

  	
  37

  
	
   

  	
   

  
	
  Section 2.2 Use
  of Proceeds

  	
  39

  
	
   

  	
   

  
	
  Section 2.3
  Evidence of Indebtedness; Register; Lenders’ Books and Records; Notes

  	
  39

  
	
   

  	
   

  
	
  Section 2.4
  Prepayments of Loans

  	
  39

  
	
   

  	
   

  
	
  Section 2.5
  Interest on Loans

  	
  40

  
	
   

  	
   

  
	
  Section 2.6
  Conversion/Continuation

  	
  41

  
	
   

  	
   

  
	
  Section 2.7 Default
  Interest

  	
  42

  
	
   

  	
   

  
	
  Section 2.8 Fees

  	
  42

  
	
   

  	
   

  
	
  Section 2.9
  General Provisions Regarding Payments

  	
  42

  
	
   

  	
   

  
	
  Section 2.10
  Ratable Sharing

  	
  43

  
	
   

  	
   

  
	
  Section 2.11
  Taxes

  	
  44

  
	
   

  	
   

  
	
  Section 2.12
  Illegality

  	
  45

  
	
   

  	
   

  
	
  Section 2.13
  Inability to Determine Rates

  	
  46

  
	
   

  	
   

  
	
  Section 2.14
  Increased Costs

  	
  46

  
	
   

  	
   

  
	
  Section 2.15
  Compensation for Losses

  	
  47

  
	
   

  	
   

  
	
  Section 2.16
  Mitigation Obligations

  	
  48

  
	
   

  	
   

  
	
  Section 2.17
  Removal or Replacement of a Lender

  	
  48

  
	
   

  	
   

  
	
  Section 2.18
  Survival

  	
  49

  

 i
 

 

 

	
  SECTION 3 CONDITIONS PRECEDENT

  	
  49

  
	
   

  	
   

  
	
  Section 3.1
  Conditions to Effectiveness

  	
  49

  
	
   

  	
   

  
	
  SECTION 4 REPRESENTATIONS AND WARRANTIES

  	
  50

  
	
   

  	
   

  
	
  Section 4.1
  Organization; Requisite Power and Authority; Qualification

  	
  50

  
	
   

  	
   

  
	
  Section 4.2
  Capital Stock and Ownership

  	
  51

  
	
   

  	
   

  
	
  Section 4.3 Due
  Authorization

  	
  51

  
	
   

  	
   

  
	
  Section 4.4 No
  Conflict

  	
  51

  
	
   

  	
   

  
	
  Section 4.5
  Governmental Consents

  	
  52

  
	
   

  	
   

  
	
  Section 4.6
  Binding Obligation

  	
  52

  
	
   

  	
   

  
	
  Section 4.7
  Historical Financial Statements

  	
  52

  
	
   

  	
   

  
	
  Section 4.8 No
  Material Adverse Change

  	
  52

  
	
   

  	
   

  
	
  Section 4.9
  Adverse Proceedings, Etc

  	
  52

  
	
   

  	
   

  
	
  Section 4.10
  Payment of Taxes

  	
  52

  
	
   

  	
   

  
	
  Section 4.11 No
  Defaults

  	
  53

  
	
   

  	
   

  
	
  Section 4.12
  Material Contracts

  	
  53

  
	
   

  	
   

  
	
  Section 4.13
  Governmental Regulation

  	
  53

  
	
   

  	
   

  
	
  Section 4.14
  Margin Stock

  	
  53

  
	
   

  	
   

  
	
  Section 4.15
  Employee Matters

  	
  53

  
	
   

  	
   

  
	
  Section 4.16
  Employee Benefit Plans

  	
  54

  
	
   

  	
   

  
	
  Section 4.17
  Certain Fees

  	
  54

  
	
   

  	
   

  
	
  Section 4.18
  Solvency

  	
  54

  
	
   

  	
   

  
	
  Section 4.19
  Compliance with Statutes, Etc

  	
  55

  
	
   

  	
   

  
	
  Section 4.20
  Disclosure

  	
  55

  
	
   

  	
   

  
	
  Section 4.21
  Senior Indebtedness

  	
  55

  

 ii
 

 

 

	
  SECTION 5 AFFIRMATIVE COVENANTS

  	
  55

  
	
   

  	
   

  
	
  Section 5.1 Financial
  Statements and Other Reports

  	
  55

  
	
   

  	
   

  
	
  Section 5.2
  Existence

  	
  58

  
	
   

  	
   

  
	
  Section 5.3
  Payment of Taxes and Claims

  	
  58

  
	
   

  	
   

  
	
  Section 5.4
  Maintenance of Properties

  	
  58

  
	
   

  	
   

  
	
  Section 5.5
  Insurance

  	
  59

  
	
   

  	
   

  
	
  Section 5.6
  Inspections; Maintaining Books and Records

  	
  59

  
	
   

  	
   

  
	
  Section 5.7
  Compliance with Laws

  	
  59

  
	
   

  	
   

  
	
  Section 5.8
  Environmental

  	
  59

  
	
   

  	
   

  
	
  Section 5.9
  Subsidiaries

  	
  61

  
	
   

  	
   

  
	
  Section 5.10
  Further Assurances

  	
  61

  
	
   

  	
   

  
	
  Section 5.11
  Senior Indebtedness

  	
  62

  
	
   

  	
   

  
	
  SECTION 6 NEGATIVE COVENANTS

  	
  62

  
	
   

  	
   

  
	
  Section 6.1
  Indebtedness

  	
  62

  
	
   

  	
   

  
	
  Section 6.2
  Liens

  	
  64

  
	
   

  	
   

  
	
  Section 6.3 No
  Further Negative Pledges

  	
  67

  
	
   

  	
   

  
	
  Section 6.4
  Restricted Payments

  	
  68

  
	
   

  	
   

  
	
  Section 6.5
  Restrictions on Subsidiary Distributions

  	
  71

  
	
   

  	
   

  
	
  Section 6.6
  Fundamental Changes; Disposition of Assets

  	
  72

  
	
   

  	
   

  
	
  Section 6.7
  Transactions with Shareholders and Affiliates

  	
  73

  
	
   

  	
   

  
	
  Section 6.8
  Conduct of Business

  	
  74

  
	
   

  	
   

  
	
  Section 6.9
  Amendments, Waivers or Prepayments with respect to Senior Indebtedness or
  Subordinated Indebtedness

  	
  74

  
	
   

  	
   

  
	
  Section 6.10
  Fiscal Year

  	
  74

  
	
   

  	
   

  
	
  SECTION 7 GUARANTY

  	
  74

  
	
   

  	
   

  
	
  Section 7.1
  Guaranty of the Obligations

  	
  74

  
	
   

  	
   

  
	
  Section 7.2
  Contribution by Guarantors

  	
  74

  

 iii
 

 

 

	
  Section 7.3 Payment by
  Guarantors

  	
  75

  
	
   

  	
   

  
	
  Section 7.4
  Liability of Guarantors Absolute

  	
  76

  
	
   

  	
   

  
	
  Section 7.5 Waivers
  by Guarantors

  	
  77

  
	
   

  	
   

  
	
  Section 7.6
  Guarantors’ Rights of Subrogation, Contribution, Etc

  	
  78

  
	
   

  	
   

  
	
  Section 7.7
  Continuing Guaranty

  	
  79

  
	
   

  	
   

  
	
  Section 7.8
  Authority of Guarantors or the Company

  	
  79

  
	
   

  	
   

  
	
  Section 7.9
  Financial Condition of the Company

  	
  79

  
	
   

  	
   

  
	
  Section 7.10
  Bankruptcy, Etc

  	
  79

  
	
   

  	
   

  
	
  Section 7.11
  Discharge of Guaranty Upon Sale of Guarantor

  	
  80

  
	
   

  	
   

  
	
  SECTION 8 EVENTS OF DEFAULT

  	
  80

  
	
   

  	
   

  
	
  Section 8.1
  Events of Default

  	
  80

  
	
   

  	
   

  
	
  SECTION 9 AGENTS

  	
  83

  
	
   

  	
   

  
	
  Section 9.1
  Appointment of Agents

  	
  83

  
	
   

  	
   

  
	
  Section 9.2
  Powers and Duties

  	
  83

  
	
   

  	
   

  
	
  Section 9.3
  Exculpatory Provisions

  	
  83

  
	
   

  	
   

  
	
  Section 9.4
  Reliance by Administrative Agent

  	
  84

  
	
   

  	
   

  
	
  Section 9.5
  Delegation of Duties

  	
  84

  
	
   

  	
   

  
	
  Section 9.6
  Agents Entitled to Act as Lender

  	
  85

  
	
   

  	
   

  
	
  Section 9.7
  Lenders’ Representations, Warranties and Acknowledgment

  	
  85

  
	
   

  	
   

  
	
  Section 9.8
  Right to Indemnity

  	
  85

  
	
   

  	
   

  
	
  Section 9.9
  Successor Administrative Agent

  	
  86

  
	
   

  	
   

  
	
  Section 9.10
  Administrative Agent May File Proofs of Claim

  	
  87

  
	
   

  	
   

  
	
  Section 9.11
  Guaranty

  	
  87

  
	
   

  	
   

  
	
  SECTION 10 MISCELLANEOUS

  	
  88

  
	
   

  	
   

  
	
  Section 10.1
  Notices

  	
  88

  

 iv
 

 

 

	
  Section 10.2 Expenses

  	
  89

  
	
   

  	
   

  
	
  Section 10.3
  Indemnity

  	
  90

  
	
   

  	
   

  
	
  Section 10.4
  Set-Off

  	
  90

  
	
   

  	
   

  
	
  Section 10.5
  Amendments and Waivers

  	
  91

  
	
   

  	
   

  
	
  Section 10.6
  Successors and Assigns; Participations

  	
  92

  
	
   

  	
   

  
	
  Section 10.7
  Independence of Covenants

  	
  95

  
	
   

  	
   

  
	
  Section 10.8
  Survival of Representations, Warranties and Agreements

  	
  95

  
	
   

  	
   

  
	
  Section 10.9 No
  Waiver; Remedies Cumulative

  	
  95

  
	
   

  	
   

  
	
  Section 10.10
  Marshalling; Payments Set Aside

  	
  95

  
	
   

  	
   

  
	
  Section 10.11
  Patriot Act Notice

  	
  96

  
	
   

  	
   

  
	
  Section 10.12
  Severability

  	
  96

  
	
   

  	
   

  
	
  Section 10.13
  Obligations Several; Independent Nature of Lenders’ Rights

  	
  96

  
	
   

  	
   

  
	
  Section 10.14
  Headings

  	
  96

  
	
   

  	
   

  
	
  Section 10.15
  APPLICABLE LAW

  	
  96

  
	
   

  	
   

  
	
  Section 10.16
  CONSENT TO JURISDICTION

  	
  96

  
	
   

  	
   

  
	
  Section 10.17
  WAIVER OF JURY TRIAL

  	
  97

  
	
   

  	
   

  
	
  Section 10.18
  Confidentiality

  	
  97

  
	
   

  	
   

  
	
  Section 10.19
  Usury Savings Clause

  	
  98

  
	
   

  	
   

  
	
  Section 10.20
  Counterparts

  	
  98

  
	
   

  	
   

  
	
  Section 10.21
  Effectiveness

  	
  98

  
	
   

  	
   

  
	
  APPENDICES:

  	
   

  
	
   

  	
   

  
	
  A

  	
  Commitments

  	
   

  
	
  B

  	
  Notice Addresses

  	
   

  
	
  C

  	
  Outstanding Organizational Documents

  	
   

  

 

 v
 

 

 

	
  EXHIBITS:

  	
   

  
	
   

  	
   

  
	
  A-1

  	
  Funding Notice

  	
   

  
	
  A-2

  	
  Conversion/Continuation Notice

  	
   

  
	
  B

  	
  Note

  	
   

  
	
  C

  	
  Opinions of U.S. Counsel

  	
   

  
	
  D

  	
  Assignment Agreement

  	
   

  
	
  E-1

  	
  Closing Date Certificate

  	
   

  
	
  E-2

  	
  Solvency Certificate

  	
   

  
	
  F

  	
  Counterpart Agreement

  	
   

  

 

 vi

 

CREDIT AND GUARANTY AGREEMENT

This CREDIT AND
GUARANTY AGREEMENT, dated as of October 13, 2006, is entered
into by and among SANMINA–SCI CORPORATION, a Delaware corporation (“Company”), CERTAIN
SUBSIDIARIES OF COMPANY, as Guarantors, the Lenders party hereto from time to
time, Citibank, N.A., as Syndication Agent (the “Syndication Agent”), Deutsche Bank AG
Cayman Islands Branch, as Documentation Agent (the “Documentation Agent”),
BANC OF AMERICA SECURITIES LLC, CITIGROUP GLOBAL MARKETS INC. and DEUTSCHE BANK
SECURITIES INC., as Joint Book Managers and Joint Lead Arrangers (the “Lead Arrangers”), and
BANK OF AMERICA, N.A., as Administrative Agent (together with its permitted
successors in such capacity, “Administrative Agent”).

RECITALS:

WHEREAS, SCI
Systems, Inc., a wholly-owned subsidiary of the Company, issued 3.0%
Convertible Subordinated Notes due 2007 (the “3.0%
Notes”);

WHEREAS, the Company desires to
refinance the 3.0% Notes;

WHEREAS, the Company has requested the
Lenders to provide it with a term loan facility in a principal amount of
$600,000,000 for the purpose of such refinancing, to pay related transaction
expenses and for working capital and general corporate purposes;

WHEREAS, the Lenders have agreed to provide
such term loan facility on the terms and conditions set forth herein;

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

Section 1

DEFINITIONS AND INTERPRETATION

Section 1.1  Definitions.  The following terms used herein, including in
the preamble, recitals, exhibits and schedules hereto, shall have the following
meanings:

“2006 Indenture” means that certain indenture, dated as of February 15,
2006, by and among the Company, certain subsidiaries of the Company as
guarantors, and U.S. National Bank Association, as trustee, governing the
senior subordinated notes issued thereunder, as may be amended, supplemented,
or otherwise modified from time to time

“3.0% Notes”
as defined in the recitals hereto.

“8-1/8% Notes”
means the 8.125% Subordinated Notes due 2016 issued by the Company.

“Additional Assets”
means:

 1
 

 

(a)           any
Property (other than cash, Cash Equivalents and securities) to be owned by the
Company or any Subsidiary and used in a Permitted Business, including, without
limitation, receivables repurchased in connection with a Receivables Program;

(b)           Capital
Stock of a Person that becomes a Subsidiary as a result of the acquisition of
such Capital Stock by the Company or another Subsidiary from any Person other
than the Company or an Affiliate of the Company; provided,
however, that, in the case of this clause (b), such Subsidiary is
primarily engaged in a Permitted Business; and

(c)           any
Permitted Investment (other than as described in clause (a), (b) (insofar
as the Investment is made in a Subsidiary) or (d) of the definition of
“Permitted Investment”).

“Administrative
Agent” as defined in the preamble hereto.

“Adverse
Proceeding” means any action, suit, proceeding (whether
administrative, judicial or otherwise), governmental investigation or
arbitration (whether or not purportedly on behalf of the Company or any of its
Subsidiaries) at law or in equity, or before or by any Governmental Authority,
domestic or foreign (including any Environmental Claims), whether pending or,
to the knowledge of the Company or any of its Subsidiaries, threatened against
the Company or any of its Subsidiaries or any property of the Company or any of
its Subsidiaries.

“Affiliate”
means, as applied to any Person, any other Person directly or indirectly
controlling, controlled by, or under common control with, that Person.  For the purposes of this definition,
“control” (including, with correlative meanings, the terms “controlling”, “controlled
by” and “under common control with”), as applied to any Person, means the
possession, directly or indirectly, of the power (i) to vote 10% or more of the
Securities having ordinary voting power for the election of directors of such
Person or (ii) to direct or cause the direction of the management and policies
of that Person, whether through the ownership of voting securities or by
contract or otherwise.

“Agent”
means each of Administrative Agent, Syndication Agent, Documentation Agent, and
each Lead Arranger.

“Aggregate
Amounts Due” as defined in Section 2.10.

“Aggregate
Payments” as defined in Section 7.2.

“Agreement”
means this Credit and Guaranty Agreement, dated as of October 13, 2006, as
it may be amended, restated, supplemented or otherwise modified from time to
time.

“Applicable Margin”
means (a) for the initial 180 days following the Closing Date, (i) in respect
of Base Rate Loans, 1.50% per annum and (ii) in respect of Eurocurrency Rate
Loans, 2.50% per annum and (b) thereafter, (i) in respect of Base Rate Loans,
2.00% per annum and (ii) in respect of Eurocurrency Rate Loans, 3.00% per
annum.

 2
 

 

“Applicable
Reserve Requirement” means, at any time, for any Eurocurrency
Rate Loan, the maximum rate, expressed as a decimal, at which reserves
(including, without limitation, any basic marginal, special, supplemental,
emergency or other reserves) are required to be maintained with respect thereto
against “Eurocurrency liabilities” (as such term is defined in Regulation D)
under regulations issued from time to time by the Board of Governors of the
Federal Reserve System or other applicable banking regulator.  Without limiting the effect of the foregoing,
the Applicable Reserve Requirement shall reflect any other reserves required to
be maintained by such member banks with respect to (i) any category of
liabilities which includes deposits by reference to which the applicable
Eurocurrency Rate or any other interest rate of a Loan is to be determined, or
(ii) any category of extensions of credit or other assets which include
Eurocurrency Rate Loans.  A Eurocurrency
Rate Loan shall be deemed to constitute Eurocurrency liabilities and as such
shall be deemed subject to reserve requirements without benefits of credit for
proration, exceptions or offsets that may be available from time to time to the
applicable Lender.  The rate of interest
on Eurocurrency Rate Loans shall be adjusted automatically on and as of the
effective date of any change in the Applicable Reserve Requirement.

“Asset
Sale” means any sale, transfer, issuance or other disposition (or
series of related sales, transfers, issuances or dispositions) by the Company
or any Subsidiary, including any disposition by means of a merger,
consolidation or similar transaction (each referred to for the purposes of this
definition as a “disposition”), of:

(a)           any
shares of Capital Stock of a Subsidiary (other than directors’ qualifying
shares), or

(b)           any other
assets of the Company or any Subsidiary (excluding Capital Stock of the
Company, cash and Cash Equivalents) outside of the ordinary course of business
of the Company or such Subsidiary,

in the case of either clause (a) or (b), (1) that have
a Fair Market Value in excess of $35.0 million, or (2) for net proceeds in
excess of $35.0 million.

Notwithstanding the foregoing clauses (a) and (b) of
this definition, in no event shall an Asset Sale include:

(1)           any disposition by a
Subsidiary to the Company or by the Company or a Subsidiary to a Subsidiary;

(2)           any disposition that
constitutes a Permitted Investment or Restricted Payment or any disposition of
a Permitted Investment, in any such case, to the extent permitted by Section
6.4;

(3)           any disposition
effected in compliance with Section 6.6(a);

(4)           any disposition of
damaged, worn out, surplus or other obsolete personal or real property in the
ordinary course of business so long as such property is no longer necessary for
the proper conduct of the business of the Company and its Subsidiaries;

 3
 

 

(5)           any issuance of Capital
Stock by a Subsidiary of the Company to the Company or to another Subsidiary of
the Company;

(6)           the licensing by the
Company or any Subsidiary of intellectual property or know-how on commercially
reasonable terms and in the ordinary course of business;

(7)           the sale, lease,
conveyance or other disposition of property in connection with the obligation
of the Company or any Subsidiary to remarket or sell any property at the end of
the lease term or otherwise under or in connection with any Synthetic Lease or
Sale and Leaseback Transaction relating to the Corporate Head Office Campus;

(8)           the surrender or waiver
of litigation rights or settlement, release or surrender of tort or other
litigation claims of any kind;

(9)           the sale, lease,
conveyance or other disposition of Receivables Program Assets any Foreign
Subsidiary in connection with any Receivables Program;

(10)         the sub-lease of
facilities of the Company or any Subsidiary and the lease by the Company or any
Subsidiary of facilities under any operating lease, in either such case, in the
ordinary course of business;

(11)         sales of Real Estate
Facilities required as part of the Company’s Phase I, Phase II and Phase III
restructuring; provided that at least 75% of the
consideration for such sales of Real Estate Facilities is in cash;

(12)         one or more sales by the
Company or any of its Subsidiaries of Real Estate Facilities; provided that the
aggregate consideration for all such sales during the term hereof does not
exceed $50.0 million;

(13)         the sale of the Real
Estate Facilities comprising the Corporate Head Office Campus in connection
with a Sale and Leaseback Transaction;

(14)         sales of Real Estate
Facilities located in Singapore for an aggregate consideration of no more than
$20.0 million; and

(15)         the granting of a lien
permitted hereunder.

“Assignment
Agreement” means an Assignment and Assumption Agreement
substantially in the form of Exhibit D, with such amendments or modifications
as may be approved by Administrative Agent.

“Attributable Debt”
in respect of a Sale and Leaseback Transaction means, at any date of
determination,

 4
 

 

(a)           if such
Sale and Leaseback Transaction is a Capital Lease Obligation, the amount of
Indebtedness represented thereby according to the definition of “Capital Lease
Obligation”; and

(b)           in all
other instances, the present value (discounted at the interest rate borne by
the Loans, compounded annually) of the total obligations of the lessee for
rental payments during the remaining term of the lease included in such Sale
and Leaseback Transaction (including any period for which such lease has been
extended).

“Authorized
Officer” means, as applied to any Person, any individual holding
the position of chairman of the board (if an officer), chief executive officer,
president, chief operating officer, vice president-treasurer (or the equivalent
thereof), vice president-controller (or the equivalent thereof), and such
Person’s chief financial officer or treasurer.

“Average Life”
means, as of any date of determination, with respect to any Indebtedness or
Preferred Stock, the quotient obtained by dividing (a) the sum of the product
of the number of years (rounded to the nearest one-twelfth of one year) from
the date of determination to the dates of each successive scheduled principal
payment of such Indebtedness or redemption or similar payment with respect to
such Preferred Stock multiplied by the amount of such payment by (b) the
sum of all such payments.

“Bankruptcy
Code” means Title 11 of the United States Code entitled
“Bankruptcy,” as now and hereafter in effect, or any successor statute.

“Base
Rate” means, for each day in any period, a fluctuating interest
rate per annum as shall be in effect from time to time, which rate per annum
shall at all times for such day during such period be equal to the higher of:

(a)           the rate
of interest announced publicly by Bank of America, N.A., from time to time, as
Bank of America, N.A.’s base rate in effect for such day; and

(b)           0.50% per
annum above the Federal Funds Rate for such day.

“Base
Rate Loan” means a Loan bearing interest at a rate determined by
reference to the Base Rate.

“Beneficiary”
means each Agent and each Lender.

“Board of Directors”
means the Board of Directors of the Company or a Guarantor, as the case may be,
or any committee thereof authorized with respect to any particular matter to
exercise the power of the Board of Directors.

“Board Resolution”
means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company or a Guarantor, as the case may be, to have been duly
adopted by the Board of Directors and to be in full force and effect on the
date of such certification, and delivered to the Administrative Agent.

 5
 

 

“Borrowing Base”
means an amount calculated as the “Borrowing Base” pursuant to the 2006
Indenture.

“Business
Day” means (i) any day excluding Saturday, Sunday and any day
which is a legal holiday under the laws of the State of New York or is a day on
which banking institutions located in such state are authorized or required by
law or other governmental action to close and (ii) with respect to all notices,
determinations, fundings and payments in connection with the Eurocurrency Rate
or any Eurocurrency Rate Loans, the term “Business Day” means any day which is
a Business Day described in clause (i) and which is also a day for trading by
and between banks in Dollar deposits in the London interbank market.

“Capital
Lease” means, as applied to any Person, any lease of any
property (whether real, personal or mixed) by that Person as lessee that, in
conformity with GAAP, is or should be accounted for as a capital lease on the
balance sheet of that Person.

“Capital Lease Obligation”
means any obligation under a lease of any property (whether real, personal or
mixed) that is capitalized for financial reporting purposes in accordance with
GAAP; and the amount of Indebtedness represented by such obligation shall be
the capitalized amount of such obligation determined in accordance with GAAP;
and the stated maturity thereof shall be the date of the last payment of rent
or any other amount due under such lease.

“Capital
Stock” means any and all shares, interests, participations or
other equivalents (however designated) of capital stock of a corporation, any
and all equivalent ownership interests in a Person (other than a corporation),
including, without limitation, partnership interests and membership interests,
and any and all warrants, rights or options to purchase or other arrangements
or rights to acquire any of the foregoing, but excluding any debt security
convertible into or exchangeable into such interest.

“Capital Stock Sale
Proceeds” means the aggregate cash proceeds received by the
Company from the issuance or sale (other than to a Subsidiary of the Company or
an employee stock ownership plan or trust established by the Company or any
such Subsidiary for the benefit of their employees) by the Company of its
Capital Stock (other than Disqualified Stock) after the Closing Date, net of
attorneys’ fees, accountants’ fees, underwriters’ or placement agents’ fees,
discounts or commissions and brokerage, consultant and other fees actually
incurred in connection with such issuance or sale and net of taxes paid or
payable as a result thereof.

“Cash”
means money, currency or a credit balance in any Deposit Account.

“Cash Equivalents”
means:

(a)           securities
issued or directly and fully guaranteed or insured by (i) the United States
Government or any agency or instrumentality thereof (provided
that the full faith and credit of the United States is pledged in support
thereof), or (ii) any member of the European Economic Area or Switzerland, or
any agency or instrumentality thereof (provided that
such country, agency or instrumentality has a credit rating at least equal to
that of the United States and the full faith and credit of such country is
pledged in support

 6
 

 

thereof), in each
case, with such securities having maturities of not more than thirteen months
from the date of acquisition;

(b)           marketable
general obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof maturing
within thirteen months from the date of acquisition thereof (provided that the
full faith and credit of such state is pledged in support thereof) and, at the
time of acquisition thereof, having credit ratings of at least AA- (or the
equivalent) by S&P and at least Aa3 (or the equivalent) by Moody’s;

(c)           certificates
of deposit, time deposits, eurodollar time deposits, overnight bank deposits or
bankers’ acceptances having maturities of not more than thirteen months from
the date of acquisition thereof issued by any commercial bank organized in the
United States of America, Canada, Japan or Switzerland or any member of the
European Economic Area, in each case, of recognized standing and having
combined capital and surplus in excess of $500.0 million (or the foreign
currency equivalent thereof);

(d)           repurchase
obligations with a term of not more than seven days for underlying securities
of the types described in clauses (a), (b) and (c) of this definition entered
into with any bank meeting the qualifications specified in clause (c) of this
definition;

(e)           commercial
paper rated at the time of acquisition thereof in one of the two highest
categories obtainable from both S&P and Moody’s or carrying an equivalent
rating by a nationally recognized rating agency, if both of the two named
rating agencies cease publishing ratings of investments, and in any case
maturing within thirteen months after the date of acquisition thereof;

(f)            interests
in any investment company or money market fund substantially all of the assets
of which are of the type specified in clauses (a) through (e) of this
definition; and

(g)           asset
backed securities rated AAA or better by S&P or Moody’s, with such
securities having maturities of not more than thirteen months from the date of
acquisition.

“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.

“Change
of Control” means, at any time, (i) any Person or “group”
(within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act) (a) shall
have acquired beneficial ownership of 35% or more on a fully diluted basis of
the voting and/or economic interest in the Capital Stock of the Company or (b)
shall have obtained the power (whether or not exercised) to elect a majority of
the members of the board of directors (or similar governing body) of the
Company; (ii) during any period of twelve (12) consecutive months, the majority
of the seats

 7
 

 

(other than vacant seats) on the board of directors
(or similar governing body) of the Company cease to be occupied by Persons who
either (a) were members of the board of directors of the Company on the Closing
Date or (b) were nominated for election by the board of directors of the
Company, a majority of whom were directors on the Closing Date or whose
election or nomination for election was previously approved by a majority of
such directors or directors elected in accordance with this clause (b); or
(iii) any “change of control” or similar event under and as defined in any
documentation relating to any Material Indebtedness.

“Closing
Date” means the date upon which all of the conditions set forth
in Section 3.1 hereof have been satisfied.

“Closing
Date Certificate” means a Closing Date Certificate substantially
in the form of Exhibit E-1.

“Commitment”
means the commitment of a Lender to make or otherwise fund a Loan and
“Commitments” means the Commitments of all Lenders in the aggregate.  The amount of each Lender’s Commitment is set
forth on Appendix A.

“Commodity
Agreement” means any swap agreement, contract or similar
agreement entered into to protect the Company and its Subsidiaries against
fluctuations in the prices of raw materials used in their businesses.

“Communications”
as defined in Section 10.1(b).

“Company”
as defined in the preamble hereto.

“Consolidated”
refers to the consolidation of accounts in accordance with GAAP.

“Consolidated Interest
Coverage Ratio” means, as of any date of determination, the
ratio of:

(a)           the
aggregate amount of EBITDA for the most recently ended four consecutive Fiscal
Quarters for which financial statements have been made publicly available; to

(b)           Consolidated
Interest Expense for such four Fiscal Quarters;

provided, however, that

(1)           if

(A)          since
the beginning of such period but prior to such date of determination, the
Company or any Subsidiary has Incurred any Indebtedness that remains
outstanding or repaid any Indebtedness; or

(B)           the
transaction giving rise to the need to calculate the Consolidated Interest
Coverage Ratio is an Incurrence or repayment of Indebtedness,

 8
 

 

Consolidated Interest Expense for such period shall be
calculated after giving effect on a pro forma basis to such Incurrence or
repayment as if such Indebtedness was Incurred or repaid on the first day of
such period, provided that, (i) in the event of any such repayment of
Indebtedness, EBITDA for such period shall be calculated as if the Company or
such Subsidiary had not earned any interest income actually earned during such
period in respect of the funds used to repay such Indebtedness and (ii) in
making such computation, the amount of Indebtedness under any revolving credit
facility shall be computed based upon the average daily balance of such Indebtedness
during such period; and

(2)           if

(A)          since
the beginning of such period but prior to such date of determination the
Company or any Subsidiary shall have made any Asset Sale or an acquisition of
Property which constitutes all or substantially all of an operating unit of a
business;

(B)           the
transaction giving rise to the need to calculate the Consolidated Interest
Coverage Ratio is such an Asset Sale or acquisition; or

(C)           since
the beginning of such period but prior to such date of determination any Person
(that subsequently became a Subsidiary or was merged with or into the Company
or any Subsidiary since the beginning of such period) shall have made such an
Asset Sale or acquisition;

EBITDA for such period shall be calculated after
giving pro forma effect to such Asset Sale or acquisition as if such Asset Sale
or acquisition had occurred on the first day of such period.

If any Indebtedness bears a floating rate of interest
and is being given pro forma effect, the interest expense on such Indebtedness shall
be calculated as if the base interest rate in effect for such floating rate of
interest on the date of determination had been the applicable base interest
rate for the entire period (taking into account any Interest Rate Agreement
applicable to such Indebtedness if such Interest Rate Agreement has a remaining
term in excess of the lesser of (i) 12 months and (ii) the remaining period
until the stated maturity of such Indebtedness).  In the event the Capital Stock of any
Subsidiary is sold during the period, the Company shall be deemed, for purposes
of clause (b)(1) of this definition, to have repaid during such period the
Indebtedness of such Subsidiary to the extent the Company and its continuing
Subsidiaries are no longer liable for such Indebtedness after such sale.

“Consolidated
Interest Expense” means (without duplication), for any period,
the total interest expense of the Company and its consolidated Subsidiaries,
plus, to the extent not included in such total interest expense, and to the
extent Incurred by the Company or its Subsidiaries during that period:

(a)           interest
expense attributable to Capital Lease Obligations and the imputed interest with
respect to Attributable Debt;

(b)           amortization
of debt discount and debt issuance cost, including commitment fees;

 9
 

 

(c)           capitalized
interest;

(d)           non-cash
interest expense;

(e)           commissions,
discounts and other fees and charges owed with respect to letters of credit and
bankers’ acceptance financing;

(f)            net
costs associated with Hedging Obligations (including amortization of fees);

(g)           Disqualified
Stock Dividends, other than dividends payable to the Company or a Subsidiary of
the Company;

(h)           Preferred
Stock Dividends, other than dividends payable to the Company or a Subsidiary of
the Company;

(i)            interest
actually paid by the Company or any Subsidiary on any Indebtedness of any other
Person to the extent such Indebtedness is guaranteed by the Company or any
Subsidiary; and

(j)            cash
contributions to any employee stock ownership plan or similar trust of the
Company to the extent such contributions are used by such plan or trust to pay
interest or fees to any Person (other than the Company) in connection with
Indebtedness Incurred by such plan or trust.

“Consolidated Net Income”
means, for any period, the net income (loss) of the Company and its
consolidated Subsidiaries; provided, however, that there shall not be included in such
Consolidated Net Income (without duplication):

(a)           if any
Subsidiary is not a Wholly Owned Subsidiary, an amount that is equal to (i) the
amount of net income attributable to such Subsidiary multiplied by (ii) the
percentage ownership interest in the income of such Subsidiary not owned on the
last day of such period by the Company or any of its Subsidiaries;

(b)           any net
income (loss) of any Person (other than the Company) if such Person is not a
Subsidiary, except that:

(1)           the Company’s equity in
the net income of any such Person for such period shall be included in such
Consolidated Net Income up to the aggregate amount of cash or any Property
distributed by such Person during such period to the Company or a Subsidiary as
a dividend or other distribution (subject, in the case of a dividend or other
distribution to a Subsidiary, to the limitations contained in clause (d) of
this definition); and

(2)           the Company’s equity in
a net loss of any such Person for such period shall be included in determining
such Consolidated Net Income;

 10
 

 

(c)           for
purposes of calculating the amount of Restricted Payments that may be made
pursuant to clause (a)(iii) of Section 6.4 only, any net income (loss) of any
Person acquired by the Company or any of its consolidated Subsidiaries in a
pooling of interests transaction for any period prior to the date of such
acquisition;

(d)           any net
income (loss) of any Subsidiary if such Subsidiary is unable to both pay
dividends and otherwise distribute cash to the Company and any other Subsidiary
because it is subject to the restrictions of its charter or other
organizational document or any agreement, instrument, contract, judgment,
decree, order or statute, rule or governmental regulation applicable to the
Subsidiary, except that:

(1)           the Company’s equity in
the net income of any such Subsidiary for such period shall be included in such
Consolidated Net Income up to the aggregate amount of cash distributed by such
Subsidiary during such period to the Company or another Subsidiary as a
dividend or other distribution (subject, in the case of a dividend or other
distribution to another Subsidiary, to the limitation contained in this
clause); and

(2)           the Company’s equity in
a net loss of any such Subsidiary for such period shall be included in
determining such Consolidated Net Income;

(e)           any gain
(or loss) realized upon the sale or other disposition of any Property of the
Company or any of its consolidated Subsidiaries (including pursuant to any Sale
and Leaseback Transaction) that is not sold or otherwise disposed of in the
ordinary course of business;

(f)            any
extraordinary gain or loss;

(g)           restructuring
charges, write-downs and reserves (to the extent not excluded in subsection (f)
of this definition) taken by the Company or its Subsidiaries during any such
period, provided that:

(1)           the aggregate amount of
charges that are paid in cash that are excluded pursuant to this clause (g) in
connection with the Restructuring Plans shall not in the aggregate exceed $60.0
million for all periods during which Consolidated Net Income may be calculated
plus any restructuring charges taken in connection with the Restructuring Plans
for the fiscal year ended October 1, 2005; and any charges paid in cash in
excess of such amount shall be included in the calculation of Consolidated Net
Income for the period when such charges are paid in cash; and

(2)           the aggregate amount of
charges that are paid in cash that are excluded pursuant to this clause (g) in
connection with the Company’s future restructuring plans shall not exceed
$125.0 million for all periods during which Consolidated Net Income may be
calculated plus any amounts permitted to be applied and not so applied to the
$60.0 million limit set forth in subclause (1) above;

 11
 

 

provided further that for
purposes of calculating the amount of Restricted Payments that may be made
pursuant to clause (a)(iii) of Section 6.4 only, this clause (g) shall not
apply;

(h)           the
cumulative effect of a change in accounting principles; and

(i)            any
non-cash compensation expense realized for grants of, or in connection with the
exercise of, performance shares, stock options or other rights to officers,
directors and employees of the Company or any Subsidiary, provided
that such shares, options or other rights can be redeemed at the option of the
holder for Capital Stock of the Company (other than Disqualified Stock).

“Consolidated
Tangible Foreign Assets” means, as of any date of determination,
the sum of the amounts that would appear on a consolidated balance sheet of the
Foreign Subsidiaries of the Company as the total assets of the Foreign
Subsidiaries of the Company, minus the total intangible assets of the Foreign
Subsidiaries of the Company.

“Contractual
Obligation” means, as applied to any Person, any provision of
any Security issued by that Person or of any indenture, mortgage, deed of
trust, contract, undertaking, agreement or other instrument to which that Person
is a party or by which it or any of its properties is bound or to which it or
any of its properties is subject.

“Contributing
Guarantors” as defined in Section 7.2.

“Conversion,” “Convert” and “Converted” each
refers to a conversion of Loans of one Type with Loans of another Type pursuant
to Section 2.6.

“Conversion/Continuation
Date” means the effective date of a continuation or conversion,
as the case may be, as set forth in the applicable Conversion/Continuation
Notice.

“Conversion/Continuation
Notice” means a Conversion/Continuation Notice substantially in
the form of

Exhibit A-2.

“Corporate
Head Office Campus” means the Company’s head office campus
located at 2700 North First Street, 2701 Zanker Road, 60 East Plumeria Drive
and 30 East Plumeria Drive, San Jose, California 95134.

“Counterpart
Agreement” means a Counterpart Agreement substantially in the
form of Exhibit F delivered by a Credit Party pursuant to Section 5.9.

“Credit
Document” means any of this Agreement, the Notes, if any, and
all other documents, instruments or agreements executed and delivered by a
Credit Party for the benefit of any Agent or any Lender in connection herewith,
in each case as amended.

“Credit Facilities”
means, with respect to the Company or any Subsidiary, one or more debt or
commercial paper facilities or instruments with banks or other institutional
lenders whether acting with or through a trustee (including the Senior Secured
Credit Agreement), or (b) indentures, in each case providing for one or more
revolving credit loans, term loans, receivables or inventory financing
(including through the sale of receivables or inventory to such lenders or

 12
 

 

to special purpose, bankruptcy remote entities formed
to borrow from such lenders against such receivables or inventory), swing-line
or commercial paper facilities (including any letter of credit, sub-facilities
or other facilities), letters of credit or note facilities or issuances, in
each case together with any refinancings thereof, whether any such refinancing
is under one or more debt or commercial paper facilities, indentures or other
agreements, by a lender or syndicate of lenders or trustees, including, in each
case, any related notes, guarantees, collateral documents, instruments and
agreements executed in connection therewith, and in each case as amended,
modified, renewed, refunded, replaced or refinanced from time to time, whether
or not with the same agent, trustee, representative lender or holders, and
irrespective of any change in the terms and conditions thereof.

“Credit
Party” means the Company and each Subsidiary of the Company from
time to time party to a Credit Document.

“Currency
Agreement” means any foreign exchange contract, currency swap
agreement, futures contract, option contract, synthetic cap or other similar
agreement or arrangement, each of which is for the purpose of managing or
hedging the foreign currency risk associated with the Company’s and its
Subsidiaries’ operations and not for speculative purposes.

“Default”
means a condition or event that, after notice or lapse of time or both, would
constitute an Event of Default.

“Deposit
Account” means a demand, time, savings, passbook or like account
with a bank, savings and loan association, credit union or like organization,
other than an account evidenced by a negotiable certificate of deposit.

“Disclosure
Letter” means the Disclosure Letter of the Company to Agents and
Lenders dated the Closing Date.

“Disqualified Stock”
means, with respect to any Person, any Capital Stock that by its terms (or by the
terms of any security into which it is convertible or for which it is
exchangeable, in either case at the option of the holder thereof) or otherwise:

(a)           matures
or is mandatorily redeemable pursuant to a sinking fund obligation or
otherwise;

(b)           is or may
become redeemable or repurchasable at the option of the holder thereof, in
whole or in part; or

(c)           is
convertible or exchangeable at the option of the holder thereof for
Indebtedness or Disqualified Stock;

on or prior to, in the case of clause (a), (b) or (c)
of this definition, the date that is 91 days after January 31, 2008.  Notwithstanding the foregoing, any Capital
Stock that would constitute Disqualified Stock solely because the holders of
the Capital Stock have the right to require the Company to repurchase such
Capital Stock upon the occurrence of a change of control or asset sale will not
constitute Disqualified Stock if the terms of such Capital Stock provide that
the

 13
 

 

Company may not repurchase or redeem any such Capital
Stock pursuant to such provisions unless such repurchase or redemption complies
with Section 6.4.

“Disqualified Stock
Dividends” means all dividends made with respect to Disqualified
Stock of the Company held by Persons other than a Subsidiary other than
dividends paid in Capital Stock of the Company. 
The amount of any such dividend shall be equal to the quotient of such
dividend divided by the difference between one and the maximum statutory
federal income tax rate (expressed as a decimal number between 1 and 0) then
applicable to the Company.

“Documentation
Agent” as defined in the preamble hereto.

“Dollars”
and the sign “$” mean the lawful money of
the United States of America.

“Domestic
Subsidiary” means any Subsidiary organized under the laws of the
United States of America, any State thereof or the District of Columbia (other
than Sanmina-SCI Netherlands Holdings LLC).

“EBITDA”
means, for any period, an amount equal to, for the Company and its consolidated
Subsidiaries:

(a)           the sum
of Consolidated Net Income for such period, plus the following to the extent
reducing Consolidated Net Income for such period:

(1)           the provision for taxes
based on income or profits or utilized in computing net income;

(2)           Consolidated Interest
Expense;

(3)           depreciation;

(4)           amortization;

(5)           any other non-cash
items (other than any such non-cash item to the extent that it represents an
accrual of or reserve for cash expenditures in any future period);

(6)           charges associated with
integration-related expenses (but excluding any associated restructuring
expenses) Incurred in such period in connection with any merger or acquisition
permitted under the Senior Secured Credit Agreement, as in effect on the
Closing Date;

(7)           accelerated recognition
of pension expenses previously deferred under FAS 87/88 in connection with
early termination of SCI Systems, Inc.’s “Supplemental Retirement Plan” not to
exceed $20.0 million in the aggregate;

 14

 

(8)           charges associated with
the repayment or redemption of the 3.0% Notes or the Senior Subordinated Notes;
and

(9)           to the extent that GAAP
requires stock-based compensation or share-based payments to be expensed, any
non-cash charges associated therewith, minus

(b)           all
non-cash items increasing Consolidated Net Income for such period.

Notwithstanding the foregoing clause (a), the
provision for taxes and the depreciation, amortization and non-cash items of a
Subsidiary shall be added to Consolidated Net Income to compute EBITDA only to
the extent (and in the same proportion) that the net income of such Subsidiary
was included in calculating Consolidated Net Income and only if a corresponding
amount would be permitted at the date of determination to be paid as dividends
to the Company by such Subsidiary without prior approval (that has not been
obtained), pursuant to the terms of its charter and all agreements,
instruments, judgments, decrees, orders, statutes, rules and governmental
regulations applicable to such Subsidiary or its shareholders.

“Eligible
Assignee” means (i) a commercial bank organized under the laws
of the United States, or any State thereof, and having a combined capital and
surplus of at least $100.0 million; (ii) a commercial bank organized under the
laws of any other country which is a member of the OECD, or a political
subdivision of any such country, and having a combined capital and surplus of
at least $100.0 million; provided,
that, such bank is acting through a branch or agency located in the United
States; (iii) a Person that is primarily engaged in the business of commercial
banking and that is (a) a Subsidiary of a Lender, (b) a Subsidiary of a Person
of which a Lender is a Subsidiary, or (c) a Person of which a Lender is a
Subsidiary; (iv) any Lender or any Person described in clause (a)(i) of the
definition of “Lender Affiliate”; (v) any Lender Affiliate not described in
clause (a)(i) of the definition thereof; 
(vi) any other entity which is an “accredited investor” (as defined in Regulation
D under the Securities Act) which extends credit or buys loans as one of its
businesses, including but not limited to, insurance companies, mutual funds and
lease financing companies; and (vii) any other Person acceptable to the Agent
and, provided no Event of Default is continuing, the Company.  No Credit Party or any Affiliate thereof
shall be an Eligible Assignee.

“Employee
Benefit Plan” means any “employee benefit plan” as defined in
Section 3(3) of ERISA which is or was sponsored, maintained or contributed to
by, or required to be contributed by, the Company, any of its Subsidiaries or
any of their respective ERISA Affiliates.

“Environmental
Claim” means any investigation, notice, notice of violation,
claim, action, suit, proceeding, demand, abatement order or other order or
directive (conditional or otherwise), by any governmental authority or any
other Person, arising (i) pursuant to or in connection with any actual or
alleged violation of any Environmental Law; (ii) in connection with any Hazardous
Material or any actual or alleged Hazardous Materials Activity; or (iii) in
connection with any actual or alleged damage, injury, threat or harm to health,
safety, natural resources or the environment.

 15
 

 

“Environmental
Laws” means any and all current or future foreign or domestic,
federal or state (or any subdivision of either of them), statutes, ordinances,
orders, rules, regulations, judgments, Governmental Authorizations, or any
other requirements of Governmental Authorities relating to (i) environmental
matters, including those relating to any Hazardous Materials Activity; (ii) the
generation, use, storage, transportation or disposal of Hazardous Materials; or
(iii) occupational safety and health, industrial hygiene, land use or the
protection of the environment, human, plant or animal health or welfare, in any
manner applicable to the Company or any of its Subsidiaries or any Real Estate
Facility.

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time
to time, and any successor thereto.

“ERISA
Affiliate” means, as applied to any Person, (i) any corporation
which is a member of a controlled group of corporations within the meaning of
Section 414(b) of the Internal Revenue Code of which that Person is a member;
(ii) any trade or business (whether or not incorporated) which is a member of a
group of trades or businesses under common control within the meaning of
Section 414(c) of the Internal Revenue Code of which that Person is a member;
and (iii) any member of an affiliated service group within the meaning of
Section 414(m) or (o) of the Internal Revenue Code of which that Person, any
corporation described in clause (i) above or any trade or business described in
clause (ii) above is a member.  Any
former ERISA Affiliate of the Company or any of its Subsidiaries shall continue
to be considered an ERISA Affiliate of the Company or any such Subsidiary
within the meaning of this definition with respect to the period such entity
was an ERISA Affiliate of the Company or such Subsidiary and with respect to
liabilities arising after such period for which the Company or such Subsidiary
is liable under the Internal Revenue Code or ERISA.

“ERISA
Event” means (i) a “reportable event” within the meaning of
Section 4043 of ERISA and the regulations issued thereunder with respect to any
Pension Plan (excluding those for which the provision for 30-day notice to the
PBGC has been waived by regulation); (ii) the failure to meet the minimum
funding standard of Section 412 of the Internal Revenue Code with respect to
any Pension Plan (whether or not waived in accordance with Section 412(d) of
the Internal Revenue Code) or the failure to make by its due date a required
installment under Section 412(m) of the Internal Revenue Code with respect to
any Pension Plan or the failure to make any required contribution to a
Multiemployer Plan by its due date; (iii) the provision by the administrator of
any Pension Plan pursuant to Section 4041(a)(2) of ERISA of a notice of intent
to terminate such plan in a distress termination described in Section 4041(c)
of ERISA; (iv) the withdrawal by the Company, any of its Subsidiaries or any of
their respective ERISA Affiliates from any Pension Plan with two or more
contributing sponsors or the termination of any such Pension Plan resulting in
liability to the Company, any of its Subsidiaries or any of their respective
Affiliates pursuant to Section 4063 or 4064 of ERISA; (v) the institution by
the PBGC of proceedings to terminate any Pension Plan, or the occurrence of any
event or condition which might constitute grounds under ERISA for the
termination of, or the appointment of a trustee to administer, any Pension
Plan; (vi) the imposition of liability on the Company, any of its Subsidiaries
or any of their respective ERISA Affiliates pursuant to Section 4062(e) or 4069
of ERISA or by reason of the application of Section 4212(c) of ERISA; (vii) the
withdrawal of the Company, any of its Subsidiaries or any of their respective
ERISA Affiliates in a complete or partial withdrawal (within the meaning of
Sections 4203 and 4205 of

 16
 

 

ERISA) from any Multiemployer Plan if there is any
potential liability therefor, or the receipt by the Company, any of its
Subsidiaries or any of their respective ERISA Affiliates of notice from any
Multiemployer Plan that it is in reorganization or insolvency pursuant to
Section 4241 or 4245 of ERISA, or that it intends to terminate or has
terminated under Section 4041A or 4042 of ERISA; (viii) the occurrence of an
act or omission which could give rise to the imposition on the Company, any of
its Subsidiaries or any of their respective ERISA Affiliates of fines,
penalties, taxes or related charges under Chapter 43 of the Internal Revenue
Code or under Section 409, Section 502(c), (i) or (l), or Section 4071 of ERISA
in respect of any Employee Benefit Plan; (ix) the assertion of a material claim
(other than routine claims for benefits) against any Employee Benefit Plan
other than a Multiemployer Plan or the assets thereof, or against the Company,
any of its Subsidiaries or any of their respective ERISA Affiliates in
connection with any Employee Benefit Plan; (x) receipt from the Internal
Revenue Service of notice of the failure of any Pension Plan (or any other
Employee Benefit Plan intended to be qualified under Section 401(a) of the
Internal Revenue Code) to qualify under Section 401(a) of the Internal Revenue
Code, or the failure of any trust forming part of any Pension Plan to qualify
for exemption from taxation under Section 501(a) of the Internal Revenue Code;
or (xi) the imposition of a Lien pursuant to Section 401(a)(29) or 412(n) of
the Internal Revenue Code or pursuant to ERISA with respect to any Pension
Plan.

“Eurocurrency
Rate” means, for any Interest Rate Determination Date with
respect to an Interest Period for a Eurocurrency Rate Loan, the rate per annum
obtained by dividing (and rounding upward to the next whole multiple of 1/16 of
1%) (i) (a) the rate per annum (rounded to the nearest 1/100 of 1%) equal to
the rate determined by Administrative Agent to be the offered rate which
appears on the page of the Reuters Screen which displays an average British
Bankers Association Interest Settlement Rate for deposits (for delivery on the
first day of such period) with a term equivalent to such period in Dollars,
determined as of approximately 11:00 a.m. (London, England time) on such
Interest Rate Determination Date, or (b) in the event the rate referenced in
the preceding clause (a) does not appear on such page or service or if such
page or service shall cease to be available, the rate per annum (rounded to the
nearest 1/100 of 1%) equal to the rate determined by Administrative Agent to be
the offered rate on such other page or other service which displays an average
British Bankers Association Interest Settlement Rate for deposits (for delivery
on the first day of such period) with a term equivalent to such period in
Dollars, determined as of approximately 11:00 a.m. (London, England time) on
such Interest Rate Determination Date, or (c) in the event the rates referenced
in the preceding clauses (a) and (b) are not available, the rate per annum
(rounded to the nearest 1/100 of 1%) equal to the offered quotation rate to
first class banks in the London interbank market by Bank of America for deposits
(for delivery on the first day of the relevant period) in Dollars of amounts in
same day funds comparable to the principal amount of the applicable Loan of
Administrative Agent, in its capacity as a Lender, for which the Eurocurrency
Rate is then being determined with maturities comparable to such period as of
approximately 11:00 a.m. (London, England time) on such Interest Rate
Determination Date, by (ii) an amount equal to (a) one minus (b) the Applicable
Reserve Requirement.

“Eurocurrency
Rate Loan” means a Loan bearing interest at a rate determined by
reference to the Eurocurrency Rate.

 17
 

 

“European
Economic Area” means the member nations of the European Economic
Area pursuant to the Oporto Agreement on the European Economic Area dated
May 2, 1992, as amended.

“Event
of Default” means each of the conditions or events set forth in
Section 8.1.

“Exchange
Act” means the Securities Exchange Act of 1934, as amended from
time to time, and any successor statute.

“Excluded
Debt Amount” means such principal amount of the 3.0% Notes that
remain on the Consolidated balance sheet of the Company after the Company
irrevocably deposits with the trustee for the holders of such Notes an amount
equal to such principal amount and all accrued interest thereon as required for
the satisfaction and discharge of the indenture under which the 3.0% Notes were
issued.

“Excluded
Taxes” means, with respect to the Administrative Agent, any
Lender or any other recipient of any payment to be made by or on account of any
obligation of the Company hereunder, (a) taxes imposed on or measured by its
overall net income (however denominated), and franchise taxes imposed on it (in
lieu of net income taxes), by the jurisdiction (or any political subdivision
thereof) under the laws of which such recipient is organized, in which its
principal office is located or with which it has a present or former connection
(other than solely as a result of entering into, delivering or performing its
obligations pursuant to this Agreement) 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 the Company is located and (c) in the case of a Foreign Lender, any withholding
tax that (i) is imposed on amounts payable to such Foreign Lender at the time
such Foreign Lender becomes a party hereto (or designates a new Lending
Office), except to the extent that such Foreign Lender was entitled, at the
time of designation of a new Lending Office, or such Foreign Lenders’ assignor
was entitled, at the time of assignment, to receive additional amounts from the
Company with respect to such withholding tax pursuant to Section 2.11(a), or
(ii) is attributable to such Foreign Lender’s failure or inability (other
than as a result of a Change in Law after the date such Foreign Lender becomes
a party hereto) to comply with Section 2.11(e).

“Facility”
means, at any time, the aggregate amount of the Loans at such time.

“Fair
Market Value” means, with respect to any Property, the price
that would reasonably be expected to be paid in an arm’s-length free market
transaction, for cash, between a willing seller and a willing buyer, neither of
whom is under undue pressure or compulsion to complete the transaction.  Fair Market Value shall be determined, except
as otherwise provided,

(a)           if
such Property has a Fair Market Value equal to or less than $50.0 million, by
any officer of the Company as set forth in an Officer’s Certificate; or

(b)           if
such Property has a Fair Market Value in excess of $50.0 million, by a majority
of the Board of Directors and evidenced by a Board Resolution, dated within 45
days of the relevant transaction and delivered to the Administrative Agent.

 18
 

 

“Fair
Share” as defined in Section 7.2.

“Fair
Share Contribution Amount” as defined in Section 7.2.

“Fair
Share Shortfall” as defined in Section 7.2.

“Federal
Funds Rate” means for any day, the rate per annum (expressed, as
a decimal, rounded upwards, if necessary, to the next higher 1/100 of 1%) equal
to the weighted average of the rates on overnight Federal funds transactions
with members of the Federal Reserve System arranged by Federal funds brokers on
such day, as published by the Federal Reserve Bank of New York on the Business
Day next succeeding such day; provided,
(i) if such day is not a Business Day, the Federal Funds Rate for such day
shall be such rate on such transactions on the next preceding Business Day as
so published on the next succeeding Business Day, and (ii) if no such rate is
so published on such next succeeding Business Day, the Federal Funds Rate for
such day shall be the average rate charged to Administrative Agent, in its
capacity as a Lender, on such day on such transactions as determined by
Administrative Agent.

“Financial
Officer Certification” means, with respect to the financial
statements for which such certification is required, the certification of the
chief financial officer of the Company that such financial statements fairly
present, in all material respects, the financial condition of the Company and
its Subsidiaries as at the dates indicated and the results of their operations
and their cash flows for the periods indicated, subject to changes resulting
from audit and normal year-end adjustments and the absence of footnotes in the
case of interim period financial statements.

“First
Tier Foreign Subsidiary” means, at any date of determination, a
Foreign Subsidiary in which the Company or any Domestic Subsidiary (or any
combination thereof) owns directly more than 50%, in the aggregate, of the
Capital Stock of such Subsidiary.

“Fiscal
Quarter” means a fiscal quarter of any Fiscal Year.

“Fiscal
Year” means the fiscal year of the Company and its Subsidiaries
ending on the Saturday nearest September 30 of each year.

“Foreign
Lender” means any Lender that is organized under the laws of a
jurisdiction other than that in which the Company 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.

“Funding
Guarantors” as defined in Section 7.2.

“Funding
Notice” means a notice substantially in the form of Exhibit A-1.

“GAAP”
means, subject to the limitations on the application thereof set forth in
Section 1.2, United States generally accepted accounting principles in effect
as of the date of determination thereof.

 19
 

 

“Governmental
Authority” means any federal, state, municipal, national or
other government, governmental department, commission, board, bureau, court,
agency or instrumentality or political subdivision thereof or any entity or
officer exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to any government or any court, in each case whether
associated with a state of the United States, the United States, or a foreign
entity or government.

“Governmental
Authorization” means any permit, license, authorization, plan,
directive, consent order or consent decree of or from any Governmental
Authority.

“Guaranteed
Obligations” as defined in Section 7.1.

“Guarantor”
means each Domestic Subsidiary of the Company.

“Guaranty”
means the guaranty of each Guarantor set forth in Section 7.

“Hazardous
Materials” means any chemical, material or substance, exposure
to which is prohibited, limited or regulated by any Governmental Authority or
which may or could pose a hazard to the health and safety of the owners,
occupants or any Persons in the vicinity of any Real Estate Facility or to the
indoor or outdoor environment.

“Hazardous
Materials Activity” means any past, current, proposed or
threatened activity, event or occurrence involving any Hazardous Materials,
including the use, manufacture, possession, storage, holding, presence,
existence, location, Release, threatened Release, discharge, placement,
generation, transportation, processing, treatment, abatement, removal,
remediation, disposal, disposition or handling of any Hazardous Materials, and
any corrective action or response action with respect to any of the foregoing.

“Hedge
Agreement” means a Commodity Agreement, Currency Agreement or
Interest Rate Agreement or any other similar agreement or arrangement.

“Hedging
Obligations” of any Person means any obligation of such Person
pursuant to any Hedge Agreement.

“Highest
Lawful Rate” means the maximum lawful interest rate, if any,
that at any time or from time to time may be contracted for, charged, or
received under the laws applicable to any Lender which are presently in effect
or, to the extent allowed by law, under such applicable laws which may
hereafter be in effect and which allow a higher maximum nonusurious interest
rate than applicable laws now allow.

“Historical
Financial Statements” means, as of the Closing Date, the audited
financial statements of the Company and its Subsidiaries for the Fiscal Years
ended September 27, 2003, October 2, 2004 and October 1, 2005, consisting of
balance sheets and the related Consolidated statements of income, stockholders’
equity and cash flows for such Fiscal Years.

“Increased
Cost Lender” as defined in Section 2.17.

 20
 

 

“Incur”
means, with respect to any Indebtedness or other obligation of any Person, to
create, issue, incur (by merger, conversion, exchange or otherwise), extend,
assume, guarantee or become liable in respect of such Indebtedness or other
obligation or the recording, as required pursuant to GAAP or otherwise, of any
such Indebtedness obligation on the balance sheet of such Person (and “Incurrence” and “Incurred” shall have
meanings correlative to the foregoing); provided,
however, that a change in GAAP
that results in an obligation of such Person that exists at such time, and is
not theretofore classified as Indebtedness, becoming Indebtedness shall not be
deemed an Incurrence of such Indebtedness; provided
further, however, that
any Indebtedness or other obligations of a Person existing at the time such
Person becomes a Subsidiary (whether by merger, consolidation, acquisition or
otherwise) shall be deemed to be Incurred by such Subsidiary at the time it
becomes a Subsidiary.  Any increase in
the amount of Indebtedness solely by reason of currency fluctuation shall not
be considered an Incurrence of Indebtedness; and the accrual of interest, the
accretion or amortization of original issue discount and the payment of
interest on any Indebtedness in the form of additional Indebtedness with the
same terms will not be deemed an Incurrence of Indebtedness.

“Indebtedness”
means, with respect to any Person on any date of determination (without
duplication):

(a)           the
principal of and premium (if any) and any other obligations in respect of:

(1)           debt of such Person for
money borrowed; and

(2)           debt evidenced by
notes, debentures, bonds or other similar instruments for the payment of which
such Person is responsible or liable;

(b)           all
Capital Lease Obligations of such Person and all Attributable Debt in respect
of Sale and Leaseback Transactions entered into by such Person;

(c)           all
obligations of such Person to pay the deferred purchase price of Property, all
conditional sale obligations of such Person and all obligations of such Person
under any title retention agreement (but excluding trade accounts payable and
accrued expenses related thereto arising in the ordinary course of business and
excluding any lease properly classified as an operating lease in accordance
with GAAP);

(d)           all
obligations of such Person for the reimbursement of any obligor on any letter
of credit, banker’s acceptance or similar credit transaction but excluding
obligations with respect to letters of credit securing obligations (other than
obligations described in clauses (a) through (c) of this definition and (f) and
(g) of this definition) entered into in the ordinary course of business of such
Person to the extent such letters of credit are not drawn upon or, if and to
the extent drawn upon, such drawing is reimbursed no later than the third
Business Day following receipt by such Person of a demand for reimbursement
following payment on the letter of credit;

(e)           the
amount of all obligations of such Person with respect to the repayment of any
Disqualified Stock;

 21
 

 

(f)            all
obligations of the type referred to in clauses (a) through (e) of this
definition of other Persons and all dividends of other Persons for the payment
of which, in either case, such Person is liable as obligor or guarantor,
including by means of any guarantee;

(g)           all
obligations of the type referred to in clauses (a) through (f) of this
definition of other Persons secured by any Lien on any Property of such Person
(whether or not such obligation is assumed by such Person), the amount of such
obligation being deemed to be the lesser of the fair market value (as
determined by the Company in good faith) of such Property subject to such Lien
or the amount of the obligation so secured; and

(h)           to
the extent not otherwise included in this definition, the net liability under
Hedging Obligations of such Person,

if and only to the extent that any of the preceding
items (other than letters of credit, Hedging Obligations and obligations
referred to in clauses (f) and (g) of this definition) would appear as a
liability upon the balance sheet of the specified Person prepared in accordance
with GAAP (and in the case of Disqualified Stock that does not appear as a
liability upon the balance sheet, the price at which such Disqualified Stock
may be redeemed by the holder thereof on the date such Disqualified Stock may
first be redeemed by the holders thereof).

In no event shall the term “Indebtedness” include (i)
any debt under any overdraft or cash management facility, provided that any such debt is incurred in
the ordinary course of business and consistent with past practice, and is
repaid in full no later than the business day immediately following the date on
which it was incurred, or (ii) any trade payable.  The amount of Indebtedness of any Person at
any date shall be (x) the accreted value thereof in the case of any Indebtedness
that does not require current payments of interest, (y) the principal amount of
such Indebtedness and (z) the maximum liability, upon the occurrence of the
contingency giving rise to the obligation, of any contingent obligations at
such date.

“Indemnified
Liabilities” means, collectively, any and all liabilities,
obligations, losses, damages (including natural resource damages), Indemnified
Taxes, penalties, claims (including Environmental Claims), costs (including the
costs of any investigation, study, sampling, testing, abatement, cleanup, removal,
remediation or other response action necessary to remove, remediate, clean up
or abate any Hazardous Materials Activity), expenses and disbursements of any
kind or nature whatsoever (including the reasonable fees and disbursements of
counsel and consultants for Indemnitees in connection with any investigative,
administrative or judicial proceeding commenced or threatened by any Person,
whether or not any such Indemnitee shall be designated as a party or a
potential party thereto, and any fees or expenses incurred by Indemnitees in
enforcing this indemnity), whether direct, indirect or consequential and
whether based on any federal, state, local or foreign laws, statutes, rules or
regulations (including securities and commercial laws, statutes, rules or
regulations and Environmental Laws), on common law or equitable cause or on
contract or otherwise, that may be imposed on, incurred by, or asserted against
any such Indemnitee, in any manner relating to or arising out of (i) this
Agreement or the other Credit Documents or the transactions contemplated hereby
or thereby (including Lenders’ agreement to make the Loans or the use or
intended use of

 22
 

 

the proceeds thereof, or any enforcement of any of the
Credit Documents (including the enforcement of the Guaranty)); (ii) the
statements of the Company contained in the commitment letter among Bank of
America, N.A., Banc of America Securities LLC, Citigroup Global Markets Inc.,
Deutsche Bank AG Cayman Islands Branch and Deutsche Bank Securities Inc. and
the Company with respect to the transactions contemplated by this Agreement; or
(iii) any Environmental Claim or any Hazardous Materials Activity relating to
or arising from, directly or indirectly, any past, present or future activity,
operation, land ownership, or practice of the Company or any of its
Subsidiaries.

“Indemnified
Taxes” means Taxes and Other Taxes of the Administrative Agent
or Lender or any other recipient of any payment arising in connection with the
transactions contemplated by this Agreement other than Excluded Taxes.

“Indemnitee”
as defined in Section 10.3.

“Insignificant
Subsidiary” means (a) a Foreign Subsidiary having assets with a
book value equal to $5.0 million or less and (b) Sanmina-SCI Espana S.L.U., a
company formed under the laws of Spain.

“Intercompany
Indebtedness” means Indebtedness (whether or not evidenced by a
writing) of the Company or any of its Subsidiaries payable to, as applicable,
the Company or any of its Subsidiaries.

“Interest
Payment Date” means with respect to (i) any Base Rate Loan, the
last calendar day of March, June, September and December of each year,
commencing on the first such date to occur after the Closing Date, and the
Maturity Date; and (ii) any Eurocurrency Rate Loan, the last day of each
Interest Period applicable to such Loan; provided,
in the case of each Interest Period of longer than three months “Interest
Payment Date” shall also include each date that is three months, or an integral
multiple thereof, after the commencement of such Interest Period.

“Interest
Period” means, in connection with a Eurocurrency Rate Loan, an
interest period of one, two, three or six months, as selected by the Company in
the applicable Funding Notice or Conversion/Continuation Notice, (i) initially,
commencing on the Conversion/Continuation Date thereof, as the case may be; and
(ii) thereafter, commencing on the day on which the immediately preceding
Interest Period expires; provided,
(a) if an 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 unless no further Business Day occurs in such month, in which case such
Interest Period shall expire on the immediately preceding Business Day; (b) any
Interest Period that begins on the last Business Day of a calendar month (or on
a day for which there is no numerically corresponding day in the calendar month
at the end of such Interest Period) shall, subject to clause (c) of this
definition, end on the last Business Day of a calendar month; and (c) no
Interest Period shall extend beyond the Maturity Date.

“Interest
Rate Agreement” means any interest rate swap agreement, interest
rate cap agreement, interest rate collar agreement, interest rate hedging
agreement or other similar agreement or arrangement, each of which is for the
purpose of managing the interest rate

 23
 

 

exposure or interest rate risk associated with the
Company’s and its Subsidiaries’ operations and not for speculative purposes.

“Interest
Rate Determination Date” means, with respect to any Interest
Period, the date that is two Business Days prior to the first day of such
Interest Period.

“Internal
Revenue Code” means the Internal Revenue Code of 1986, as
amended to the date hereof and from time to time hereafter, and any successor
statute.

“Investment”
by any Person means any direct or indirect loan (other than advances to
customers or other persons in the ordinary course of business that are recorded
as accounts receivable, prepaid expenses or deposits on the balance sheet of
such Person), advance or other extension of credit or capital contribution (by
means of transfers of cash or other Property to others or payments for Property
or services for the account or use of others) (but excluding commission, travel
and similar advances to officers, directors and employees made in the ordinary
course of business) to, or Incurrence of a guarantee of any obligation of, or
purchase or acquisition of Capital Stock, bonds, notes, debentures or other
securities or evidence of Indebtedness issued by, any other Person; provided that in no event shall the
licensing or transfer of know-how or intellectual property or the providing of
services, each in the ordinary course of business, be considered an
Investment.  If the Company or any Subsidiary
sells or otherwise disposes of any Capital Stock of any direct or indirect
Subsidiary such that, after giving effect to any such sale or disposition, such
Person is no longer a Subsidiary of the Company, the Company shall be deemed to
have made an Investment on the date of such sale or disposition equal to the
fair market value (as determined in good faith by the Company) of the Capital
Stock of such Subsidiary not sold or disposed.

“Joint
Venture” means a joint venture, partnership or other similar
arrangement, whether in corporate, partnership or other legal form; provided that in no event shall any
Subsidiary of any Person be considered to be a Joint Venture to which such
Person is a party.

“Law”
or “Laws”
means all international, foreign, Federal, state and local statutes, treaties,
rules, guidelines, regulations, ordinances, codes and administrative or
judicial precedents or authorities, including the interpretation or
administration thereof by any Governmental Authority charged with the
enforcement, interpretation or administration thereof, and all applicable
administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Authority, in each case
whether or not having the force of law.

“Lead
Arrangers” as defined in the preamble hereto.

“Lender”
means each financial institution listed on the signature pages hereto as a
Lender, and any other Person that becomes a party hereto pursuant to an
Assignment Agreement.

“Lender
Affiliate” means (a) with respect to any Lender, (i) an
Affiliate of such Lender or (ii) any entity (whether a corporation,
partnership, trust or otherwise) that is engaged in making, purchasing, holding
or otherwise investing in bank loans and similar extensions of credit in the ordinary
course of its business and is administered or managed by a Lender or an
Affiliate of such Lender and (b) with respect to any Lender that is a fund, any
other fund which

 24
 

 

invests in bank loans and similar extensions of credit
and is managed by the same investment advisor as such Lender or by an Affiliate
of such investment advisor.

“Lending
Office” means, as to any Lender, the office or offices of such
Lender as such Lender may from time to time notify the Borrower and the
Administrative Agent.

“Lien”
means any lien, mortgage, pledge, assignment for security, security interest,
charge or encumbrance of any kind (including any agreement to give any of the
foregoing, any conditional sale or other title retention agreement, and any
lease in the nature thereof) and any option, trust or other preferential
arrangement having the practical effect of any of the foregoing.

“Loan”
means a loan made by a Lender to the Company pursuant to Section 2.1(a).

“Loan
Exposure” means, with respect to any Lender, as of any date of
determination, the outstanding principal amount of the Loans of such Lender.

“Margin
Stock” has the meaning set forth in Regulation U of the Board of
Governors of the Federal Reserve System as in effect from time to time.

“Material
Adverse Effect” means a material adverse effect on (i) the
business, operations, properties, assets or condition (financial or otherwise)
the Company and its Subsidiaries taken as a whole; (ii) the ability of any
Credit Party to fully and timely perform its Obligations; (iii) the legality,
validity, binding effect or enforceability against a Credit Party of a Credit
Document to which it is a party; or (iv) the rights, remedies and benefits
available to, or conferred upon, any Agent or any Lender under any Credit
Document.

“Material
Contract” means any contract or other arrangement to which the
Company or any of its Subsidiaries is a party (other than the Credit Documents)
for which breach, nonperformance, cancellation or failure to renew could
reasonably be expected to have a Material Adverse Effect.

“Material
Indebtedness” shall mean (a) Indebtedness in respect of the
Senior Secured Credit Facility and (b) any other Indebtedness (other than the
Loans), or obligations in respect of one or more Hedge Agreements, of any Credit
Party evidencing an aggregate outstanding principal amount exceeding $10.0
million. For purposes of determining Material Indebtedness, the “principal
amount” of the obligations of such Credit Party in respect of any Hedge
Agreement at any time shall be the maximum aggregate amount (giving effect to
any netting agreements) that such Credit Party would be required to pay if such
Hedge Agreement were terminated at such time.

“Maturity
Date” means the earliest of (i) the fifth Business Day after
Closing Date if by such day the Company has not applied the proceeds of the
Loan to the satisfaction and discharge of the indenture under which the 3.0%
Notes were issued, (ii) January 31, 2008, and (iii) the date that all
Loans shall become due and payable in full hereunder, whether by acceleration
or otherwise.

 25
 

 

“Moody’s”
means Moody’s Investor Services, Inc.

“Multiemployer
Plan” means any Employee Benefit Plan which is a “multiemployer
plan” as defined in Section 3(37) of ERISA.

“NAIC”
means the National Association of Insurance Commissioners, and any successor
thereto.

“Narrative
Report” means, with respect to the financial statements for
which such narrative report is required, a narrative report describing the
operations of the Company and its Subsidiaries in the form prepared for
presentation to senior management thereof for the applicable Fiscal Quarter or
Fiscal Year and for the period from the beginning of the then current Fiscal
Year to the end of such period to which such financial statements relate.

“Net
Available Cash” from any Asset Sale means cash payments actually
received therefrom by the Company or its Subsidiaries (including any cash
payments actually received by way of deferred payment of principal pursuant to
a note or installment receivable or otherwise, but only as and when received,
but excluding any other consideration received in the form of assumption by the
acquiring Person of Indebtedness or other obligations relating to the Property
that is the subject of such Asset Sale or received in any other non-cash form),
in each case net of:

(a)           all
legal, title and recording expenses, commissions and other fees and expenses
Incurred (including, without limitation, investment banking, sales commissions
and relocation expenses), and all Federal, state, provincial, foreign and local
taxes required to be accrued as a liability under GAAP, as a consequence of
such Asset Sale;

(b)           all
payments made on any Indebtedness that is secured by any Lien upon Property
that is the subject of such Asset Sale, or by applicable law, which are repaid
out of the proceeds from such Asset Sale;

(c)           all
distributions and other payments required to be made to minority interest
holders in Subsidiaries or Joint Ventures as a result of such Asset Sale; and

(d)           any
reserve for adjustment in respect of the sale price of such asset or assets
established in accordance with GAAP.

“Net
Cash Proceeds” means, with respect to the Incurrence of any
Indebtedness by the Company or any of its Subsidiaries, the excess of (i) the
sum of Cash and Cash Equivalents received in connection with such incurrence or
issuance over (ii) the underwriting discounts and commissions or other similar
payments, and other out-of-pocket costs, fees, commissions, premiums and
expenses incurred by the Company or any of its Subsidiaries in connection with
such incurrence or issuance to the extent such amounts were not deducted in
determining the amount referred to in clause (i).

“Non-Consenting
Lender” as defined in Section 2.17.

 26
 

 

“Note”
means a promissory note in the form of Exhibit B, evidencing the aggregate
indebtedness of the Company to such Lender resulting from the Loan made by such
Lender, as it may be amended, supplemented or otherwise modified from time to
time.

“Notice”
means a Funding Notice or a Conversion/Continuation Notice.

“Obligations”
means all obligations of every nature of each Credit Party from time to time
owed to the Agents (including former Agents), the Lenders or any of them under
any Credit Document, whether for principal, interest (including interest which,
but for the filing of a petition in bankruptcy with respect to such Credit
Party, would have accrued on any Obligation, whether or not a claim is allowed
against such Credit Party for such interest in the related bankruptcy
proceeding), fees, expenses, indemnification or otherwise.

“OECD”
means the Organization for Economic Development and Cooperation.

“Officer’s
Certificate” means, as applied to any corporation, a certificate
executed on behalf of such corporation by its Chairman of the Board (if an
officer), its Chief Executive Officer, its President or one of its Vice
Presidents or by its Chief Financial Officer, Vice President-Finance or its
Treasurer, in each case in their official (and not individual) capacity.

“Organizational
Documents” means (i) with respect to any corporation, its
certificate or articles of incorporation or organization, as amended, and its
by-laws, as amended, (ii) with respect to any limited partnership, its
certificate of limited partnership, as amended, and its partnership agreement,
as amended, (iii) with respect to any general partnership, its partnership
agreement, as amended, and (iv) with respect to any limited liability company,
its articles of organization, as amended, and its operating agreement, as
amended.  In the event any term or
condition of this Agreement or any other Credit Document requires any
Organizational Document to be certified by a secretary of state or similar
governmental official, the reference to any such “Organizational Document”
shall only be to a document of a type customarily certified by such
governmental official.

“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 Credit Document or from the
execution, delivery or enforcement of, or otherwise with respect to, this
Agreement or any other Credit Document.

“Patriot
Act” means the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001,
Pub. L. 107-56.

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

“Pension
Plan” means any Employee Benefit Plan, other than a
Multiemployer Plan, which is subject to Section 412 of the Internal Revenue
Code or Section 302 of ERISA.

 27
 

 

“Permitted
Business” means any business that is related, ancillary or
complementary to the businesses of the Company and its Subsidiaries on the
Closing Date or any reasonable extension thereof.

“Permitted
Investment” means any Investment by the Company or a Subsidiary
in:

(a)           the
Company;

(b)           any
Subsidiary or any Person that will, upon the making of such Investment, become
a Subsidiary, provided that the
primary business of such Subsidiary is a Permitted Business;

(c)           any
Person if as a result of such Investment such Person is merged or consolidated
with or into, or transfers or conveys all or substantially all its Property to,
or is liquidated into, the Company or a Subsidiary, provided that such Person’s primary business is a Permitted
Business;

(d)           Cash
or Cash Equivalents;

(e)           Investments
(i) of the types specified in the definition of Cash Equivalents but which
mature on dates up to three years from the date of acquisition and (ii)
consisting of corporate obligations with long-term ratings of A or better from
S&P and A2 or better from Moody’s, having maturities of not more than
twelve months from the date of acquisition, so long as the aggregate value of
the Investments described in clauses (i) and (ii) does not exceed 20% of the
value of cash and short-term investments and long-term investments of the types
described in the definition of Cash Equivalents and this clause (e), in each
case as shown on the Company’s most recent balance sheet that has been made
publicly available;

(f)            receivables
owing to the Company or a Subsidiary, if created or acquired in the ordinary
course of business and payable or dischargeable in accordance with customary
trade terms (and Investments obtained in exchange for or settlement of accounts
receivable for which the Company or a Subsidiary has determined that collection
is not likely); provided, however, that such trade terms may include
such concessionary trade terms as the Company or such Subsidiary deems
reasonable under the circumstances;

(g)           commission,
entertainment, relocation, payroll, travel and similar advances to cover
matters that are expected at the time of such advances ultimately to be treated
as expenses for accounting purposes and that are made in the ordinary course of
business;

(h)           loans
and advances to, or guarantees of third party loans to, employees, directors
and officers made in the ordinary course of business consistent with past
practices of the Company or such Subsidiary and in compliance with applicable
laws, provided that such loans
and advances in the aggregate do not exceed $5.0 million at any one time
outstanding;

 28

 

(i)            any acquisition of
Property solely in exchange for the issuance of Capital Stock (other than
Disqualified Stock) or the transfer on a non-exclusive basis of intellectual
property or know-how of the Company;

(j)            any Investment
received in settlement of debts created in the ordinary course of business and
owing to the Company or a Subsidiary or in satisfaction of judgments, including
pursuant to a plan of reorganization or similar arrangement upon the bankruptcy
or insolvency of any trade creditor or customer or consideration received in
settlement of litigation claims in tort, bankruptcy, liquidation, receivership
or insolvency or otherwise;

(k)           any Person to the
extent such Investment represents the non-Cash portion of the consideration
received in connection with an Asset Sale consummated in compliance with
Section 6.6(b);

(l)            Hedging Obligations
permitted under Section 6.1;

(m)          prepaid expenses and
negotiable instruments held for collection in the ordinary course of business;

(n)           lease, utility and workers’
compensation, performance and other similar deposits arising in the ordinary
course of business;

(o)           Investments existing as
of the Closing Date and Investments purchased or received in exchange for such
Investments, provided that any
additional consideration provided by the Company or any Subsidiary in such
exchange shall not be permitted pursuant to this clause (o);

(p)           loans or advances to
customers in the ordinary course of business; and

(q)           any Person engaged in a
Permitted Business, provided that
such Investments in the aggregate do not exceed 10% of Total Assets at any one
time outstanding.

“Permitted Liens”
means each of the Liens permitted pursuant to Section 6.2.

“Permitted Refinancing”
means refinancings and extensions (including successive refinancings and
extensions) of any Indebtedness if the terms and conditions thereof are not
less favorable to the obligor thereon or to the Lenders (other than interest
rates and conversion rates) than the 8-1/8% Notes as in effect on the date
hereof (determined in good faith by the Board of Directors of the Company), and
the average life to maturity thereof is greater than or equal to that of the
Senior Subordinated Notes being refinanced or extended (determined in good
faith by the Board of Directors of the Company); provided, however,
that (i) in respect of any refinancing of any Subordinated Indebtedness, such
Indebtedness shall be subordinated to the rights of the Lenders hereunder on
substantially similar subordination terms as the subordinated Indebtedness
being refinanced or in a manner satisfactory to the Administrative Agent, and
(ii) any such Indebtedness shall not (A) include Indebtedness of an obligor
that was not an obligor (including by way of guaranty) with respect to the
Indebtedness being extended,

 29
 

 

renewed or refinanced,
(B) exceed in a principal amount (or if incurred with original issue discount,
an aggregate issue price) the Indebtedness being renewed, extended or
refinanced, plus an amount necessary to pay any fees and expenses, including
premiums and defeasance costs, related thereto, or (C) be incurred, created or
assumed if any Default or Event of Default has occurred and is continuing or
would result therefrom.

“Permitted Refinancing Indebtedness”
means any Indebtedness that refinances any other Indebtedness, including any
successive refinancings, so long as:

(a)           such Indebtedness is in
an aggregate principal amount (or if Incurred with original issue discount, an
aggregate issue price) not in excess of the sum of:

(1)           the
aggregate principal amount (or if Incurred with original issue discount, the
aggregate accreted value) and all accrued interest then outstanding of the
Indebtedness being refinanced; and

(2)           an
amount necessary to pay any fees and expenses, including premiums and defeasance
costs, related to such refinancing;

(b)           the Average Life of
such Indebtedness is equal to or greater than the Average Life of the
Indebtedness being refinanced;

(c)           the maturity date of
such Indebtedness is no earlier than the maturity date of the Indebtedness
being refinanced; and

(d)           the new Indebtedness
shall not be senior right of payment to the Indebtedness that is being
refinanced;

provided,
however, that Permitted
Refinancing Indebtedness shall not include Indebtedness of a Subsidiary that is
not a Guarantor that refinances Indebtedness of the Company or a Guarantor.

“Person” means and
includes natural persons, corporations, limited partnerships, general
partnerships, limited liability companies, limited liability partnerships,
joint stock companies, Joint Ventures, associations, companies, trusts, banks,
trust companies, land trusts, business trusts or other organizations, whether
or not legal entities, and Governmental Authorities.

“Platform” as defined
in Section 10.1(b).

“Preferred Stock” means
any Capital Stock of a Person, however designated, which entitles the holder
thereof to a preference with respect to the payment of dividends, or as to the
distribution of assets upon any voluntary or involuntary liquidation or
dissolution of such Person, over shares of any other class of Capital Stock
issued by such Person.

“Preferred Stock Dividends”
means all dividends (other than dividends paid in Capital Stock of the Company)
made with respect to Preferred Stock of Subsidiaries held by Persons other than
the Company or a Wholly Owned Subsidiary. 
The amount of any such dividend shall be equal to the quotient of such
dividend divided by the difference between one

 30
 

 

and the maximum statutory
federal income rate (expressed as a decimal number between 1 and 0) then
applicable to the issuer of such Preferred Stock.

“Principal Office”
means, for Administrative Agent, such Person’s “Principal Office” as set forth
on Appendix B, or such other office as such Person may from time to time
designate in writing to the Company, Administrative Agent and each Lender.

“Property” means, with
respect to any Person, any interest of such Person in any kind of property or
asset, whether real, personal or mixed, or tangible or intangible, including
Capital Stock in, and other securities of, any Person.

“Pro Rata Share” means
with respect to each Lender, the percentage obtained by dividing (A) an amount
equal to the sum of the Loan Exposure of that Lender, by (B) an amount equal to
the sum of the aggregate Loan Exposure of all Lenders.

“Public Lender” as
defined in Section 10.1(b).

“Real Estate Asset”
means, at any time of determination, any interest (fee, leasehold or otherwise)
then owned by any Credit Party in any real property.

“Real Estate Facility”
means any real property (including all buildings, fixtures or other
improvements located thereon) now, hereafter or heretofore owned, leased,
operated or used by Company or any of its Subsidiaries or any of their
respective predecessors or Affiliates.

“Receivables Program”
means, with respect to any Foreign Subsidiary, an agreement or other
arrangement or program providing for the advance of funds to such Foreign
Subsidiary against the sale of Receivables Program Assets of such Foreign
Subsidiary and/or one or more of its Subsidiaries pursuant to a factoring or
similar arrangement.

“Receivables Program Assets”
means all of the following Property and interests in Property, including any
undivided interest in any pool of any such Property or interests, whether now
existing or existing in the future or hereafter arising or acquired:

(a)           accounts (as defined in
the UCC or any similar or equivalent legislation as in effect in any applicable
jurisdiction);

(b)           accounts receivable,
general intangibles, instruments, contract rights, documents and chattel paper
(including, without limitation, all rights to payment created by or arising
from sales of goods, leases of goods or the rendition of services, no matter
how evidenced, whether or not earned by performance);

(c)           all unpaid sellers’ or lessors’
rights (including, without limitation, rescission, replevin, reclamation and
stoppage in transit) relating to any of the foregoing or arising therefrom;

(d)           all rights to any goods
or merchandise represented by any of the foregoing;

 31
 

 

(e)           all reserves and credit
balances with respect to any such accounts receivable or account debtors;

(f)            all letters of credit,
security or guarantees of any of the foregoing;

(g)           all insurance policies
or reports relating to any of the foregoing;

(h)           all collection or
deposit accounts relating to any of the foregoing;

(i)            all books and records
relating to any of the foregoing;

(j)            all instruments,
contract rights, chattel paper, documents and general intangibles relating to
any of the foregoing; and

(k)           all proceeds of any of
the foregoing.

“Refinancing Senior Subordinated
Notes” means any notes issued to refinance in whole or in part
from time to time any of the Senior Subordinated Notes or any Refinancing
Senior Subordinated Notes provided such notes do not provide for any mandatory
payments of principal (whether through redemption or otherwise) earlier than
the Senior Subordinated Notes or such Refinancing Senior Subordinated Notes
being refinanced and otherwise do not contain, in the good faith judgment of
the Board of Directors of the Company, more burdensome terms and conditions
(other than interest rates) than the 8-1/8% Notes.

“Register” as defined
in Section 2.3(c).

“Regulation D” means
Regulation D of the Board of Governors of the Federal Reserve System, as in effect
from time to time.

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

“Release” means any
release, spill, emission, leaking, pumping, pouring, injection, escaping,
deposit, disposal, discharge, dispersal, dumping, leaching or migration of any
Hazardous Material into the indoor or outdoor environment (including the
abandonment or disposal of any barrels, containers or other closed receptacles
containing any Hazardous Material), including the movement of any Hazardous
Material through the air, soil, surface water or groundwater.

“Replacement Lender”
as defined in Section 2.17.

“Requisite Lenders”
means, at any time, Lenders owed or holding at least a majority in interest of
the aggregate principal amount of the Loans outstanding at such time.

“Restricted Payment”
means:

 32
 

 

(a)           any dividend or
distribution (whether made in cash, securities or other Property) declared or
paid on or with respect to any shares of Capital Stock of the Company or any
Subsidiary (including any such payment in connection with any merger or
consolidation with or into the Company or any Subsidiary), except for any
dividend or distribution that is made solely to the Company or a Subsidiary
(and, if such Subsidiary is not a Wholly Owned Subsidiary, to the other
shareholders of such Subsidiary on a pro
rata basis or on a basis that results in the receipt by the Company
or a Subsidiary of dividends or distribution of greater value than it would
receive on a pro rata basis) or
any dividend or distribution payable solely in shares of Capital Stock (other
than Disqualified Stock) of the Company;

(b)           the purchase,
repurchase, redemption, acquisition or retirement for value of any Capital
Stock of the Company (other than from a Subsidiary);

(c)           the purchase,
repurchase, redemption, acquisition or retirement for value, prior to the
earliest of the Stated Maturity or the date for any sinking fund or amortization
or other installment payment, of any Subordinated Indebtedness (other than the
purchase, repurchase, redemption, acquisition or retirement of any Subordinated
Indebtedness purchased in anticipation of satisfying a payment at the earliest
of the Stated Maturity, or the date of any sinking fund or amortization or
other installment obligation, in each case due within one year of the date of
purchase, repurchase, redemption, acquisition or retirement); or

(d)           any Investment (other
than Permitted Investments) in any Person.

“Restructuring Plans”
means each of the restructuring plans of the Company and its Subsidiaries as
announced by the Company on (1) October 29, 2002 in the Company’s press release
and earnings conference call relating to its fourth quarter ended
September 28, 2002 and year-end results for fiscal 2002 and (2) July 10,
2004 in the Company’s press release and earnings call relating to its third
quarter ended June 26, 2004, as revised in the Company’s press release and
earnings call relating to its first quarter ended January 1, 2005.

“S&P” means
Standard & Poor’s Ratings Group, a division of The McGraw Hill Corporation.

“Sale and Leaseback Transaction”
means any direct or indirect arrangement relating to Property now owned or
hereafter acquired whereby the Company or a Subsidiary transfers such Property
to another Person and the Company or a Subsidiary leases it from such
Person.  Neither a transaction solely
between the Company and any of its Subsidiaries or between any Subsidiaries of
the Company, nor a sale and leaseback transaction that is consummated within
180 days after the purchase of the assets subject to such transaction, shall be
considered a Sale and Leaseback Transaction.

“Securities” means any
stock, shares, partnership interests, voting trust certificates, certificates
of interest or participation in any profit-sharing agreement or arrangement,
options, warrants, bonds, debentures, notes, or other evidences of
indebtedness, secured or unsecured, convertible, subordinated or otherwise, or
in general any instruments

 33
 

 

commonly known as “securities”
or any certificates of interest, shares or participations in temporary or
interim certificates for the purchase or acquisition of, or any right to
subscribe to, purchase or acquire, any of the foregoing.

“Securities Act” means
the Securities Act of 1933, as amended from time to time, and any successor
statute.

“Senior Indebtedness”
means on any date, the outstanding principal amount of all Indebtedness of the
Company and its Subsidiaries (exclusive of (i) intercompany Indebtedness
between the Company and any of its Subsidiaries or between any Subsidiaries of
the Company, (ii) the Senior Subordinated Notes, (iii) any other Indebtedness
that is fully subordinated to the obligations of the Credit Parties under the
Credit Documents and (iv) the Indebtedness included in clauses
(ii),(iv),(v),(vi),(vii),(viii),(ix),(x),(xi),(xiii),(xiv) and (xvi) of the
definition of Permitted Indebtedness in Section 6.1(b)).

“Senior Leverage Ratio”
means the ratio as of the last day of any Fiscal Quarter of (i) Senior
Indebtedness of the Company and its Subsidiaries on a consolidated basis in
accordance with GAAP (other than the Excluded Debt Amount and the aggregate
outstanding amount of revolving credit loans and letter of credit exposure
under the Senior Secured Credit Agreement and any refinancing thereof) as of
such day to (ii) EBITDA for the period of four consecutive Fiscal Quarters
ending on such day.

“Senior Obligations”
means Indebtedness of the Company or a Subsidiary under the Senior Secured
Credit Agreement (and any document or agreement delivered in connection
therewith) or other Credit Facilities (other than this Agreement), provided
that on the date of Incurrence of any such Indebtedness, the aggregate
principal amount of all Senior Obligations (including such Indebtedness) shall
not exceed the greater of (A) $800 million and (B) the Borrowing Base, less the
amount of Senior Obligations which has been paid from the proceeds of Asset
Sales as required by this Agreement or the respective agreement under which it
was issued.

“Senior Secured Credit Agreement”
means that certain Amended and Restated Credit and Guaranty Agreement dated as
of December 16, 2005, entered into by and among the Company, certain subsidiaries
of the Company, as guarantors, the lenders from time party thereto, the other
agents party thereto, Bank of America, N.A., as Administrative Agent, and
Citibank, N.A., as Collateral Agent.

“Senior Secured Credit Documents”
means the Senior Secured Credit Agreement and all other documents executed and
delivered with connection therewith and with any other Senior Obligation.

“Senior Subordinated Notes”
means the 6-3/4% Senior Subordinated Notes due 2013 and the 8.125% Senior
Subordinated Notes due 2016 of the Company issued pursuant to the respective
Senior Subordinated Notes Agreement, and any registered notes issued by the
Company in exchange for, and as contemplated by, any of the Senior Subordinated
Notes with substantially identical terms as the respective Senior Subordinated
Notes.

 34
 

 

“Senior Subordinated Notes Agreements”
means that certain indenture, dated as of February 22, 2005, by and among the
Company, certain subsidiaries of the Company as guarantors, and U.S. Bank
National Association, as trustee, governing the senior subordinated notes
issued thereunder, as may be amended, supplemented, or otherwise modified from
time to time, the 2006 Indenture, and any indenture entered into in connection
with the Refinancing Senior Subordinated Notes.

“Senior Subordinated Notes Documents”
means the Senior Subordinated Notes, the Senior Subordinated Notes Agreements,
the Senior Subordinated Notes Guarantees, the Refinancing Senior Subordinated
Notes and all other documents executed and delivered with respect to any of the
foregoing.

“Senior Subordinated Notes Guarantees”
means the guarantees by the guarantors pursuant to the Senior Subordinated
Notes Agreements, as each may be amended, supplemented or otherwise modified
from time to time.

“Solvency Certificate”
means a Solvency Certificate of the chief financial officer of the Company
substantially in the form of Exhibit E-2.

“Solvent” means, with
respect to any Credit Party, that as of the date of determination both (i) (a)
the sum of such Credit Party’s debt (including contingent liabilities) does not
exceed the present fair saleable value of such Credit Party’s present assets;
(b) such Credit Party’s capital is not unreasonably small in relation to its
business as contemplated on the Closing Date and reflected in the Projections
or with respect to any transaction contemplated or undertaken after the Closing
Date; and (c) such Person has not incurred and does not intend to incur, or
believe (nor should it reasonably believe) that it will incur, debts beyond its
ability to pay such debts as they become due (whether at maturity or
otherwise); and (ii) such Person is “solvent” within the meaning given that
term and similar terms under applicable laws relating to fraudulent transfers
and conveyances.  For purposes of this
definition, the amount of any contingent liability at any time shall be
computed as the amount that, in light of all of the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability (irrespective of whether such contingent
liabilities meet the criteria for accrual under Statement of Financial
Accounting Standard No. 5).

“Stated Maturity”
means, with respect to any security, the date specified in such security as the
fixed date on which the payment of principal of such security is due and
payable, including pursuant to any mandatory redemption or repurchase provision
(but excluding any provision providing for the redemption or repurchase of such
security at the option of the holder thereof upon the happening of any
contingency beyond the control of the issuer unless such contingency has
occurred).

“Subordinated Indebtedness”
means (i) the Senior Subordinated Notes and (ii) other subordinated
Indebtedness of the Company or any of its Subsidiaries.  “Subordinated Indebtedness” shall in no event
include any Indebtedness of the Company or any of its Subsidiaries that is
subordinated only due to the priority of any liens granted in relation thereto.

 35
 

 

“Subsidiary” means, with
respect to any Person, any corporation, partnership, limited liability company,
association, joint venture or other business entity of which more than 50% of
the total voting power of shares of stock or other ownership interests entitled
(without regard to the occurrence of any contingency) to vote in the election
of the Person or Persons (whether directors, managers, trustees or other
Persons performing similar functions) having the power to direct or cause the
direction of the management and policies thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof; provided, in determining the percentage of
ownership interests of any Person controlled by another Person, no ownership
interest in the nature of a “qualifying share” of the former Person shall be
deemed to be outstanding.

“Syndication Agent” as
defined in the recitals hereto.

“Synthetic Lease”
means an agreement for the use or possession of property creating obligations
that do not appear on the balance sheet of such Person but which, for U.S.
federal income tax purposes, is characterized as the indebtedness of such
Person (without regard to accounting treatment) and any related documents including
any refinancings, extensions, renewals, defeasance, amendments, modifications,
supplements, restructuring, replacements, refundings, repayments, payments,
purchases, redemptions or retirements, or the entering into of other such
leases or agreements, in exchange or replacement for, such agreement or lease.

“Tax” or “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.

“Terminated Lender” as
defined in Section 2.17.

“Total Assets” means
the amount calculated as “Total Assets” pursuant to the 2006 Indenture.

“Type” means a Base
Rate Loan or a Eurocurrency Rate Loan.

“UCC” means the
Uniform Commercial Code (or any similar or equivalent legislation) as in effect
in any applicable jurisdiction.

“Unencumbered Cash and Available
Credit” means Cash and Cash Equivalents of the Company and its
Subsidiaries that is not subject to a Lien (other than Liens granted pursuant
to the Senior Secured Credit Facility permitted hereunder), plus availability
of the Company and its Subsidiaries under revolving lines of credit.

“Wholly Owned Subsidiary”
means, at any time, a Subsidiary all the Capital Stock of which (except
director’s qualifying shares or shares required by applicable law to be held by
third persons) is at such time owned, directly or indirectly, by the Company
and its other Wholly Owned Subsidiaries.

Section 1.2  Accounting Terms.  Except as otherwise expressly provided
herein, all accounting terms not otherwise defined herein shall have the
meanings assigned to them in conformity with GAAP.  Financial statements and other information
required to be delivered by

 36
 

 

the Company to Lenders
pursuant to Section 5.1(a) and 5.1(b) shall be prepared in accordance with GAAP
as in effect at the time of such preparation (and delivered together with the
reconciliation statements provided for in Section 5.1(c), if applicable).  Subject to the foregoing, calculations in
connection with the definitions, covenants and other provisions hereof shall
utilize accounting principles and policies in conformity with those used to
prepare the Company’s financial statements for its Fiscal Year ended October 2,
2005.  If at any time any change in GAAP
would affect the computation of any financial ratio or requirement set forth in
any Credit Document, and either the Company or the Requisite Lenders shall so
request, Administrative Agent, the Lenders and the Company 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
Requisite Lenders); provided
that, until so amended, (a) such ratio or requirement shall continue to be
computed in accordance with GAAP prior to such change therein and (b) the
Company shall provide to Administrative Agent and the Lenders financial
statements and other documents required under this Agreement or as reasonably
requested hereunder setting forth a reconciliation between calculations of such
ratio or requirement made before and after giving effect to such change in
GAAP.

Section 1.3  Interpretation, Etc.  Any of the terms defined herein may, unless
the context otherwise requires, be used in the singular or the plural,
depending on the reference.  References
herein to any Section, Appendix, Schedule or Exhibit shall be to a Section, an
Appendix, a Schedule or an Exhibit, as the case may be, hereof unless otherwise
specifically provided.  The use herein of
the word “include” or “including”, when following any general statement, term
or matter, shall not be construed to limit such statement, term or matter to
the specific items or matters set forth immediately following such word or to
similar items or matters, whether or not nonlimiting language (such as “without
limitation” or “but not limited to” or words of similar import) is used with
reference thereto, but rather shall be deemed to refer to all other items or
matters that fall within the broadest possible scope of such general statement,
term or matter.  Unless otherwise
expressly provided herein, (a) references to agreements (including the Credit
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 Credit Document
and (b) all references to any law, rule or regulation shall include all
statutory and regulatory provisions consolidating, amending, replacing,
supplementing or interpreting such law, rule or regulation.

SECTION
2

LOANS

Section 2.1  Loans. 
(a)  Loans.  Each Lender listed on the signature pages
hereof severally agrees, on the terms and conditions hereinafter set forth, to
make a single Loan to the Company on the Closing Date in an aggregate amount
equal to such Lender’s Commitment.  The
Loans repaid or prepaid may not be reborrowed.

(b)           Loan Mechanics.  (i) 
The Loans shall be made on notice, given not later than (x) 11:00 A.M.
(New York City time) on the same Business Day as the date of the proposed Loans
if to be Base Rate Loans, or (y) 1:00 P.M. (New York City time) on the third
Business Day prior to the date of the proposed Loans if to be Eurocurrency Rate
Loans, by the Company

 37
 

 

to Administrative Agent which shall give to each Lender prompt notice
thereof by telecopier.  Such notice of
Loans (the “Funding
Notice”) shall be by telecopier, or by telephone, confirmed
immediately by telecopier, in substantially the form of Exhibit A-1 hereto,
specifying therein the requested (i) date of the Loans (which shall be a
Business Day), (ii) Type of Loans and (iii) if the Loans shall initially be
Eurocurrency Rate Loans, initial Interest Period.  Each Lender shall, before (A) 1:00 P.M. (New
York City time) on such date, make available for the account of its Principal
Office to Administrative Agent at Administrative Agent’s Account, in same day
funds, such Lender’s Loan.  After
Administrative Agent’s receipt of such funds and upon fulfillment of the
applicable conditions set forth in Section 3.1, Administrative Agent will make
such funds available to the Company at the office where Administrative Agent’s
Account is maintained.

(ii)           The Funding Notice
shall be irrevocable and binding on the Company.  If the Loans are to be Eurocurrency Rate
Loans, the Company shall indemnify each Lender against any loss, cost or
expense incurred by such Lender as a result of any failure to fulfill on or
before the date specified in the Funding Notice the applicable conditions set
forth in Section 3.1, including, without limitation, any loss, cost or expense
incurred by reason of the liquidation or redeployment of deposits or other
funds acquired by such Lender to fund the Loan to be made by such Lender when
such Loan, as a result of such failure, is not made on such date.

(iii)          Unless Administrative
Agent shall have received notice from a Lender prior to the Closing Date that
such Lender will not make available to Administrative Agent such Lender’s Loan,
Administrative Agent may assume that such Lender has made its Loan available to
Administrative Agent in accordance with subsection (b)(i) of this Section 2.1(b)
and Administrative Agent may, in reliance upon such assumption, make available
to the Company on such date a corresponding amount.  If and to the extent that any Lender shall
not have so made its Loan available to Administrative Agent, such Lender agrees
to pay to Administrative Agent forthwith on demand such amount together with
interest thereon, for each day from the date such amount is made available to
the Company until the date such amount is paid to Administrative Agent, at the
Federal Funds Rate; provided, however,
that (i) within two Business Days after any Lender shall fail to make such
amount available to Administrative Agent, Administrative Agent shall notify the
Company of such failure and (ii) if such Lender shall not have paid such amount
to Administrative Agent within two Business Days after such demand is made of
such Lender by Administrative Agent, the Company agrees to repay to
Administrative Agent forthwith, upon demand by Administrative Agent to the
Company, such amount together with interest thereon, for each day from the date
such amount is made available to the Company until the date such amount is
repaid to Administrative Agent, at the interest rate applicable at the time to
the Loans.  If and to the extent such
amount shall be paid by such Lender to Administrative Agent in accordance with
this Section 2.1(b)(iii), such amount so paid shall constitute such Lender’s
Loan for all purposes of this Agreement.

(iv)          The failure of any
Lender to make its Loan shall not relieve any other Lender of its obligation,
if any, hereunder to make its Loan, but no Lender shall be responsible for the
failure of any other Lender to make its Loan.

 38
 

 

Section 2.2  Use of Proceeds.  The proceeds of the Loans shall be applied by
the Company to refinance the 3.0% Notes, to pay related transaction expenses
and for working capital and general corporate purposes.  No portion of the proceeds of any Loan shall
be used in any manner that causes or might cause such Loan or the application
of such proceeds to violate Regulation T, Regulation U or Regulation X of the
Board of Governors of the Federal Reserve System or any other regulation
thereof or to violate the Exchange Act.

Section 2.3  Repayment; Evidence of Indebtedness;
Register; Lenders’ Books and Records; Notes.  (a)  Repayment.  The Company shall repay to the Administrative
Agent for the ratable account of the Lenders on the Maturity Date the aggregate
principal amount of the Loans then outstanding, together with interest accrued
and unpaid thereon.

(b)           Lenders’ Evidence of Indebtedness.  Each Lender shall maintain on its internal
records an account or accounts evidencing the Indebtedness of the Company to
such Lender, including the amount of the Loan made by it and each repayment and
prepayment in respect thereof.  Any such
recordation shall be conclusive and binding on the Company, absent manifest
error; provided, failure to make
any such recordation, or any error in such recordation, shall not affect the
Company’s Obligations in respect of any Loan; and provided  further,
in the event of any inconsistency between the Register and any Lender’s
records, the recordations in the Register shall govern.

(c)           Register.  Administrative Agent, acting on behalf of the
Company, shall maintain at its Principal Office a register for the recordation
of the names and addresses of Lenders and the Loan of each Lender (the “Register”).  The Register shall be available for
inspection by the Company or any Lender at any reasonable time and from time to
time upon reasonable prior notice. 
Administrative Agent shall record in the Register the Loans, and each
repayment or prepayment in respect of the principal amount of the Loans, and
any such recordation shall be conclusive and binding on the Company and each
Lender, absent manifest error; provided,
failure to make any such recordation, or any error in such recordation, shall
not affect the Company’s Obligations in respect of any Loan.  The Company hereby designates Administrative
Agent to serve as the Company’s agent solely for purposes of maintaining the
Register as provided in this Section 2.3, and the Company hereby agrees that,
to the extent Administrative Agent serves in such capacity, Administrative
Agent and its officers, directors, employees, agents and affiliates shall
constitute “Indemnitees.”

(d)           Notes.  If so requested by any Lender by written
notice to the Company (with a copy to Administrative Agent) at least two
Business Days prior to the Closing Date, or at any time thereafter, the Company
shall execute and deliver to such Lender (and/or, if applicable and if so
specified in such notice, to any Person who is an assignee of such Lender
pursuant to Section 10.6) on the Closing Date (or, if such notice is delivered
after the Closing Date, promptly after the Company’s receipt of such notice) a
Note to evidence such Lender’s Loan.

Section 2.4  Prepayments of Loans.  (a)  Optional.  The Company may, upon not less than (i) the
same Business Day’s notice to Administrative Agent received not later than
11:00 A.M. (New York City time) in the case of Base Rate Loans, or (ii) three
Business Days’ notice to Administrative Agent received not later than 1:00 P.M.
(New York City time) in the case of Eurocurrency Rate Loans, stating the
proposed date and aggregate principal amount of

 39
 

 

the prepayment, and if
such notice is given the Company shall, prepay the outstanding principal
amounts of the Loans in whole or ratably in part, together with accrued
interest to the date of such prepayment on the principal amount prepaid; provided, however,
that (x) each partial prepayment shall be in an aggregate principal amount of
$5.0 million or an integral multiple of $1.0 million in excess thereof, and (y)
in the case of any such prepayment of Eurocurrency Rate Loans, the Company
shall be obligated to reimburse the Lenders in respect thereof pursuant to
Section 2.15.

(b)           Mandatory.  (i)  If
the Company or any of its Subsidiaries effects any Asset Sale, the Company
shall prepay an aggregate principal amount of Loans equal to 100% of all Net
Available Cash received therefrom within three (3) Business Days following
receipt thereof by the Company or such Subsidiary.

(ii)           Upon the Incurrence by
the Company or any of its Subsidiaries of any Indebtedness (other than
Indebtedness expressly permitted to be Incurred pursuant to Section 6.1 as
Permitted Indebtedness), the Company shall prepay an aggregate principal amount
of Loans equal to 100% of all Net Cash Proceeds received therefrom immediately
upon receipt thereof.

(iii)          All prepayments under
this subsection (b) shall be made together with accrued interest to the date of
such prepayment on the principal amount prepaid, and shall be applied ratably
first to the Base Rate Loans, and then to the Eurocurrency Rate Loans, together
with any amounts owing pursuant to Section 2.15(a).

Section 2.5  Interest on Loans.  (a) 
Except as otherwise set forth herein, each Loan shall bear interest on
the unpaid principal amount thereof from the date made through repayment
(whether by acceleration or otherwise) thereof as follows:

(i)            if a Base Rate Loan,
at the Base Rate plus the Applicable Margin; or

(ii)           if a Eurocurrency Rate
Loan, at the Eurocurrency Rate plus the Applicable Margin.

(b)           The basis for determining the rate of
interest with respect to any Loan, and the Interest Period with respect to any
Eurocurrency Rate Loan, shall be selected by the Company and notified to
Administrative Agent and Lenders pursuant to the applicable Funding Notice or
Conversion/Continuation Notice, as the case may be.

(c)           In connection with Eurocurrency Rate Loans
there shall be no more than seven (7) Interest Periods outstanding at any
time.  In the event the Company fails to
specify between a Base Rate Loan or a Eurocurrency Rate Loan in the Funding
Notice or the applicable Conversion/Continuation Notice, such Loan (if
outstanding as a Eurocurrency Rate Loan) will be automatically converted into a
Base Rate Loan on the last day of the then-current Interest Period for such
Loan (or if outstanding as a Base Rate Loan will remain as, or (if not then outstanding)
will be made as, a Base Rate Loan).  In
the event the Company fails to specify an Interest Period for any Eurocurrency
Rate Loan in the Funding Notice or the applicable Conversion/Continuation
Notice, the Company shall be deemed to have selected an Interest Period of one
month.  As soon as practicable after
10:00 a.m. (New York City time) on each

 40
 

 

Interest Rate Determination Date, Administrative Agent shall determine
(which determination shall, absent manifest error, be final, conclusive and binding
upon all parties) the interest rate that shall apply to the Eurocurrency Rate
Loans for which an interest rate is then being determined for the applicable
Interest Period and shall promptly give notice thereof (in writing or by
telephone confirmed in writing) to the Company and each Lender.

(d)           Interest payable pursuant to Section 2.5(a)
shall be computed (i) in the case of Base Rate Loans on the basis of a 365-day
or 366-day year, as the case may be, and (ii) in the case of Eurocurrency Rate
Loans, on the basis of a 360-day year, in each case for the actual number of
days elapsed in the period during which it accrues.  In computing interest on any Loan, the date
of the making of such Loan or the first day of an Interest Period applicable to
such Loan or, with respect to a Base Rate Loan being converted from a
Eurocurrency Rate Loan, the date of conversion of such Eurocurrency Rate Loan
to such Base Rate Loan, as the case may be, shall be included, and the date of
payment of such Loan or the expiration date of an Interest Period applicable to
such Loan or, with respect to a Base Rate Loan being converted to a
Eurocurrency Rate Loan, the date of conversion of such Base Rate Loan to such
Eurocurrency Rate Loan, as the case may be, shall be excluded.

(e)           Except as otherwise set forth herein,
interest on each Loan shall be payable in arrears on and to (i) each Interest
Payment Date applicable to that Loan; (ii) any prepayment of that Loan, whether
voluntary or mandatory, to the extent accrued on the amount being prepaid; and
(iii) at maturity, including final maturity; provided,
however, with respect to any voluntary prepayment of a Base Rate
Loan, accrued interest shall instead be payable on the applicable Interest
Payment Date.

Section 2.6  Conversion/Continuation.  The Company may on any Business Day, upon
notice given to Administrative Agent not later than (i) 11:00 A.M. (New York
City time) on the same Business Day as the date of the proposed Conversion in
the case of a Conversion of Eurocurrency Rate Loans into Base Rate Loans, and
(ii) 1:00 P.M. (New York City time) on the third Business Day prior to the date
of the proposed Conversion in the case of a Conversion of Base Rate Loans into
Eurocurrency Rate Loans or of Eurocurrency Rate Loans of one Interest Period
into Eurocurrency Rate Loans of another Interest Period or the continuation of
Eurocurrency Rate Loans as Eurocurrency Rate Loans with the same Interest
Period, as the case may be, and subject to the provisions of Sections 2.5, 2.12
and 2.13, Convert all Loans of one Type into Loans of the other Type; provided, however,
that any Conversion of any Eurocurrency Rate Loans into Base Rate Loans or into
Eurocurrency Rate Loans of another Interest Period shall be made on, and only
on, the last day of an Interest Period for such Eurocurrency Rate Loans.  Promptly upon receipt from the Company of a
notice of a proposed Conversion hereunder, Administrative Agent shall give
notice of such proposed Conversion to each Lender.  Each such notice of a Conversion shall,
within the restrictions set forth above, specify (x) the date of such
Conversion (which shall be a Business Day), (y) the Loans to be Converted, and
(z) if such Conversion is into Eurocurrency Rate Loans, the duration of the
initial Interest Period for each such Loan. 
The Company may Convert all Eurocurrency Rate Loans of any one Lender
into Base Rate Loans of such Lender in accordance with the provisions of
Section 2.12 by complying with the procedures set forth therein and in this
Section 2.6 as though each reference in this Section 2.6 to Loans of any Type
was to such Loans of such Lender.  Each
such notice of

 41
 

 

Conversion shall, subject
to the provisions of Sections 2.5 and 2.12, be irrevocable and binding on the
Company.

Section 2.7  Default Interest.  Upon the occurrence and during the
continuance of an Event of Default, the principal amount of all Loans
outstanding and, to the extent permitted by applicable law, any interest
payments on the Loans or any fees or other amounts owed hereunder, shall during
such period bear interest (including post-petition interest in any proceeding
under the Bankruptcy Code or other applicable bankruptcy laws) payable on
demand at a rate that is 2.0% per annum in excess of the interest rate
otherwise payable hereunder with respect to the applicable Loans (or, in the
case of any such fees and other amounts, at a rate which is 2.0% per annum in
excess of the interest rate otherwise payable hereunder for Base Rate Loans); provided, in the case of Eurocurrency Rate
Loans, upon the expiration of the Interest Period in effect at the time any
such increase in interest rate is effective such Eurocurrency Rate Loans shall
thereupon become Base Rate Loans and shall thereafter bear interest payable
upon demand at a rate which is 2.0% per annum in excess of the interest rate
otherwise payable hereunder for Base Rate Loans.  Payment or acceptance of the increased rates
of interest provided for in this Section 2.7 is not a permitted alternative to
timely payment and shall not constitute a waiver of any Event of Default or
otherwise prejudice or limit any rights or remedies of Administrative Agent or
any Lender.

Section 2.8  Fees. 
The Company agrees to pay to Agents fees in the amounts and at the times
separately agreed upon.

Section 2.9  General Provisions Regarding Payments.  (a) 
All payments by the Company of principal, interest, fees and other
Obligations shall be made in Dollars in same day funds, without defense, setoff
or counterclaim, free of any restriction or condition, and delivered to
Administrative Agent not later than 12:00 p.m. (New York City time) on the date
due at Administrative Agent’s Principal Office for the account of Lenders;
funds received by Administrative Agent after that time on such due date shall
be deemed to have been paid by the Company on the next succeeding Business Day.

(b)           All payments in respect of the principal
amount of any Loan shall include payment of accrued and unpaid interest and
premium, if any is due, on the principal amount being repaid or prepaid, and
all such payments (and, in any event, any payments in respect of any Loan on a
date when interest is due and payable with respect to such Loan) shall be
applied to the payment of any premium and interest before application to
principal.

(c)           Administrative Agent shall promptly
distribute to each Lender at such address as such Lender shall indicate in
writing, such Lender’s applicable Pro Rata Share of all payments and
prepayments of principal, premium and interest due hereunder, together with all
other amounts due thereto, to the extent received by Administrative Agent.

(d)           Subject to the provisos set forth in the
definition of “Interest
Period”, whenever any payment to be made hereunder shall be
stated to be due on a day that is not a Business Day, such payment shall be
made on the next succeeding Business Day and such extension of time shall be
included in the computation of the payment of interest hereunder.

 42
 

 

(e)           The Company hereby authorizes Administrative
Agent to charge the Company’s accounts with Administrative Agent in order to
cause timely payment to be made to Administrative Agent of all principal,
premium, interest, fees and expenses due hereunder (subject to sufficient funds
being available in its accounts for that purpose).

(f)            Administrative Agent shall deem any payment
by or on behalf of the Company hereunder that is not made in same day funds
prior to 12:00 p.m. (New York City time) to be a non-conforming payment.  Any such payment shall not be deemed to have
been received by Administrative Agent until the later of (i) the time such
funds become available funds, and (ii) the applicable next Business Day.  Administrative Agent shall give prompt
telephonic notice to the Company and each applicable Lender (confirmed in
writing) if any payment is non-conforming. 
Any non-conforming payment may constitute or become a Default or Event
of Default in accordance with the terms of Section 8.1(a).  Interest shall continue to accrue on any
premium and principal as to which a non-conforming payment is made until such
funds become available funds (but in no event less than the period from the
date of such payment to the next succeeding applicable Business Day) at the
rate determined pursuant to Section 2.7 from the date such amount was due and
payable until the date such amount is paid in full.

(g)           If an Event of Default shall have occurred
and not otherwise been cured or waived, and the maturity of the Obligations
shall have been accelerated pursuant to Section 8.1, all payments or proceeds
received by Agents hereunder in respect of any of the Obligations, shall be
applied first, against any expenses owing to the Agents under the Credit
Documents, and thereafter in such order as the Administrative Agent determines.

Section 2.10  Ratable Sharing.  Lenders hereby agree among themselves that if
any of them shall, whether by voluntary payment (other than a voluntary
prepayment of Loans made and applied in accordance with the terms hereof),
through the exercise of any right of set-off or banker’s lien, by counterclaim
or cross action or by the enforcement of any right under the Credit Documents
or otherwise, or as adequate protection of a deposit treated as cash collateral
under the Bankruptcy Code, receive payment or reduction of a proportion of the
aggregate amount of principal, interest, amounts payable in respect of fees and
other amounts then due and owing to such Lender hereunder or under the other
Credit Documents (collectively, the “Aggregate Amounts Due” to such Lender) which
is greater than the proportion received by any other Lender in respect of the
Aggregate Amounts Due to such other Lender, then the Lender receiving such
proportionately greater payment shall (a) notify Administrative Agent and each
other Lender of the receipt of such payment and (b) apply a portion of such
payment to purchase participations (which it shall be deemed to have purchased
from each seller of a participation simultaneously upon the receipt by such
seller of its portion of such payment) in the Aggregate Amounts Due to the
other Lenders so that all such recoveries of Aggregate Amounts Due shall be
shared by all Lenders in proportion to the Aggregate Amounts Due to them; provided, if all or part of such
proportionately greater payment received by such purchasing Lender is thereafter
recovered from such Lender upon the bankruptcy or reorganization of the Company
or otherwise, those purchases shall be rescinded and the purchase prices paid
for such participations shall be returned to such purchasing Lender ratably to
the extent of such recovery, but without interest.  The Company expressly consents to the
foregoing arrangement and agrees that any holder of a participation so
purchased may exercise any and all rights of banker’s lien, set-off or
counterclaim with respect to any and all monies owing by the Company to that
holder with

 43
 

 

respect thereto as fully
as if that holder were owed the amount of the participation held by that
holder.

Section 2.11  Taxes. 
(a)  Payments Free of Taxes.  Any and all payments by or on account of any
obligation of any Credit Party hereunder or under any other Credit Document to
the Administrative Agent or any Lender or any other recipient of a payment
arising hereunder shall be made free and clear of and without reduction or
withholding for any Indemnified Taxes, provided
that if the Company shall be required by applicable law to deduct any
Indemnified 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) the
Administrative Agent or any Lender, as the case may be, receives an amount
equal to the sum it would have received had no such deductions been made, (ii)
such Credit Party shall make such deductions and (iii) such Credit Party shall
timely pay the full amount deducted to the relevant Governmental Authority in
accordance with applicable law.

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

(c)           Indemnification by the Credit Parties.  The Credit Parties shall, jointly and
severally, indemnify the Administrative Agent and each Lender, within 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) paid by the Administrative Agent or such Lender, as the
case may be, and any penalties, interest and reasonable expenses arising
therefrom or with respect thereto, whether or not such Indemnified Taxes 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 Company by a Lender (with
a copy to the Administrative Agent), or by the Administrative Agent on its own
behalf or on behalf of a Lender, shall be conclusive absent manifest error.

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

 44

 

(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
Internal Revenue Code, (A) a certificate to the effect that such Foreign Lender
is not (1) a “bank” within the meaning of section 881(c)(3)(A) of the Internal
Revenue Code, (2) a “10 percent shareholder” of such Credit Party within the
meaning of section 881(c)(3)(B) of the Internal Revenue Code, or (3) a “controlled
foreign corporation” described in section 881(c)(3)(C) of the Internal Revenue
Code and (B) 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 the Company to determine the
withholding or deduction required to be made.

(f)            Treatment of Certain
Refunds.  If the Administrative Agent
or any Lender determines, in its sole discretion, that it has received a refund
of any Indemnified Taxes as to which it has been indemnified by any Credit
Party or with respect to which the Company has paid additional amounts pursuant
to this Section, it shall pay to such Credit Party an amount equal to such
refund (but only to the extent of indemnity payments made, or additional
amounts paid, by such Credit Party under this Section with respect to the
Indemnified Taxes giving rise to such refund), net of all out-of-pocket
expenses of the Administrative Agent or such 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
such Credit Party, upon the request of the Administrative Agent or such Lender,
agrees to repay the amount paid over to the Borrower (plus
any penalties, interest or other charges imposed by the relevant Governmental
Authority) to the Administrative Agent or such Lender if the Administrative
Agent or such Lender is required to repay such refund to such Governmental
Authority.  This subsection shall not be
construed to require the Administrative Agent or any Lender to make available
its tax returns (or any other information relating to its taxes that it deems
confidential) to any Credit Party or any other Person.

Section 2.12           Illegality.  If any Lender determines that any applicable
Law has made it unlawful, or that any Governmental Authority has asserted that
it is unlawful, for any Lender or its applicable Lending Office to make,
maintain or fund Eurocurrency Rate Loans, or to determine or charge interest
rates based upon the Eurocurrency Rate, or any Governmental Authority has
imposed material restrictions on the authority of such Lender to purchase or
sell, or to take deposits of, Dollars in the London interbank market, then, on
notice thereof by such Lender to the Company through the Administrative Agent,
any obligation of such Lender to make or continue Eurocurrency Rate Loans or to
convert Base Rate Loans to Eurocurrency Rate Loans shall be suspended until
such Lender notifies the Administrative Agent and the Company that the
circumstances giving rise to such determination no longer exist.  Upon receipt of such notice, the Company
shall, upon demand from such Lender (with a copy to the Administrative Agent),
prepay or, if applicable, convert all Eurocurrency Rate Loans of such Lender to
Base Rate Loans, either on the last day of the Interest Period therefor, if
such Lender may lawfully continue to maintain such Eurocurrency Rate Loans to
such day, or immediately, if such Lender

 45
 

 

may not lawfully continue
to maintain such Eurocurrency Rate Loans. 
Upon any such prepayment or conversion, the Company shall also pay
accrued interest on the amount so prepaid or converted.

Section 2.13           Inability to Determine Rates.  If the Requisite Lenders determine that for
any reason in connection with any request for a Eurocurrency Rate Loan or a
conversion to or continuation thereof that (a) Dollar deposits are not being
offered to banks in the London interbank eurocurrency market for the applicable
amount and Interest Period of such Eurocurrency Rate Loan, (b) adequate and
reasonable means do not exist for determining the Eurocurrency Rate for any
requested Interest Period with respect to a proposed Eurocurrency Rate Loan, or
(c) the Eurocurrency Rate for any requested Interest Period with respect to a
proposed Eurocurrency Rate Loan does not adequately and fairly reflect the cost
to such Lenders of funding such Loan, the Administrative Agent will promptly so
notify the Company and each Lender. 
Thereafter, the obligation of the Lenders to make or maintain
Eurocurrency Rate Loans shall be suspended until the Administrative Agent (upon
the instruction of the Requisite Lenders) revokes such notice.  Upon receipt of such notice, the Company may
revoke any pending request for a conversion to or continuation of Eurocurrency
Rate Loans.

Section 2.14           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 credit
extended or participated in by, any Lender (except any reserve requirement
reflected in the Eurocurrency Rate);

(ii)           subject any Lender to any tax of any kind
whatsoever with respect to this Agreement or any Eurocurrency Rate Loan made by
it, or change the basis of taxation of payments to such Lender in respect
thereof (except for Indemnified Taxes covered by Section 2.11 and the
imposition of, or any change in the rate of, any Excluded Tax payable by such
Lender); or

(iii)          impose on any Lender or the London interbank
market any other condition, cost or expense affecting this Agreement or
Eurocurrency Rate Loans made by such Lender;

and the result of any of the foregoing shall be to
increase the cost to such Lender of making or maintaining any Eurocurrency Rate
Loan (or of maintaining its obligation to make any such Loan), or to reduce the
amount of any sum received or receivable by such Lender hereunder (whether of
principal, interest or any other amount) then, upon request of such Lender, the
Company will pay to such Lender such additional amount or amounts as will
compensate such Lender for such additional costs incurred or reduction
suffered.

(b)           Capital Requirements.  If any Lender determines that any Change in
Law affecting such Lender or any Lending Office of such Lender or such 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 capital or on the
capital of such Lender’s holding company, if any, as a 

 46
 

 

consequence of this Agreement, the Loans made
by such Lender to a level below that which such Lender or such Lender’s holding
company could have achieved but for such Change in Law (taking into
consideration such Lender’s policies and the policies of such Lender’s holding
company with respect to capital adequacy), then from time to time the Company
will pay to such Lender such additional amount or amounts as will compensate
such Lender or such Lender’s holding company for any such reduction suffered.

(c)           Certificates for
Reimbursement.  A certificate of a
Lender setting forth in reasonable detail the amount or amounts necessary to
compensate such Lender or its holding company, as the case may be, and the
basis therefor as specified in subsection (a) or (b) of this Section and delivered
to the Company shall be conclusive absent manifest error.  The Company shall pay such Lender the amount
shown as due on any such certificate within 30 days after receipt thereof.

(d)           Delay in Requests.  Failure or delay on the part of any Lender to
demand compensation pursuant to the foregoing provisions of this Section shall
not constitute a waiver of such Lender’s right to demand such compensation, provided that the Company shall not be required to
compensate a Lender pursuant to the foregoing provisions of this Section for
any increased costs incurred or reductions suffered more than nine months prior
to the date that such Lender notifies the Company of the Change in Law giving
rise to such increased costs or reductions and of such 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 2.15           Compensation for Losses.  Upon demand of any Lender (with a copy to the
Administrative Agent) from time to time, the Company shall promptly compensate
such Lender for and hold such Lender harmless from any loss, cost or expense
incurred by it as a result of:

(a)           any continuation,
conversion, payment or prepayment of any Loan other than a Base Rate Loan on a
day other than the last day of the Interest Period for such Loan (whether
voluntary, mandatory, automatic, by reason of acceleration, or otherwise);

(b)           any failure by the
Company (for a reason other than the failure of such Lender to make a Loan) to
prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the
date or in the amount notified by the Company; or

(c)           any assignment of a
Eurocurrency Rate Loan on a day other than the last day of the Interest Period
therefor as a result of a request by the Company pursuant to Section 10.6;

including any loss of anticipated profits and any loss
or expense arising from the liquidation or reemployment of funds obtained by it
to maintain such Loan or from fees payable to terminate the deposits from which
such funds were obtained.  The Company
shall also pay any customary administrative fees charged by such Lender in
connection with the foregoing.

 47
 

 

For purposes of calculating amounts payable by the
Company to the Lenders under this Section 2.15, each Lender shall be deemed to
have funded each Eurocurrency Rate Loan made by it at the Eurocurrency Rate for
such Loan by a matching deposit or other borrowing in the London interbank
eurocurrency market for a comparable amount and for a comparable period,
whether or not such Eurocurrency Rate Loan was in fact so funded.

Section 2.16           Mitigation Obligations.  If any Lender requests compensation under Section
2.14, or the Company is required to pay any additional amount to any Lender or
any Governmental Authority for the account of any Lender pursuant to Section
2.11, or if any Lender gives a notice pursuant to Section 2.12, 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 2.11 or 2.14, as the case may be, in
the future, or eliminate the need for the notice pursuant to Section 2.12, as
applicable, and (ii) in each case, would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such
Lender.  The Company hereby agrees to pay
all reasonable costs and expenses incurred by any Lender in connection with any
such designation or assignment.

Section 2.17           Removal or Replacement of a Lender.  Anything contained herein to the contrary
notwithstanding, in the event that: (a) any Lender (an “Increased-Cost
Lender”) shall give notice to the Company that such Lender is
entitled to receive payments under Section 2.11 or 2.14, or pursuant to Section
2.12 is unable to make Eurocurrency Rate Loans, the circumstances which have
caused such Lender to be unable to make Eurocurrency Rate Loans or which
entitle such Lender to receive such payments shall remain in effect, and such
Lender shall fail to withdraw such notice within five (5) Business Days after
the Company’s request for such withdrawal; or (b) in connection with any
proposed amendment, modification, termination, waiver or consent with respect
to any of the provisions hereof as contemplated by Section 10.5(b), the consent
of Requisite Lenders shall have been obtained but the consent of one or more of
such other Lenders (each a “Non-Consenting Lender”)
whose consent is required shall not have been obtained; then, with respect to
each such Increased-Cost Lender or Non-Consenting Lender (the “Terminated Lender”), the Company
may, by giving written notice to Administrative Agent and any Terminated Lender
of its election to do so, elect to cause such Terminated Lender (and such
Terminated Lender hereby irrevocably agrees) to assign its outstanding Loans in
full to one or more Eligible Assignees (each a “Replacement
Lender”) in accordance with the provisions of Section 10.6 and
Terminated Lender shall pay any fees payable thereunder in connection with such
assignment; provided, (1) on the date of such
assignment, the Replacement Lender shall pay to Terminated Lender an amount
equal to the principal of, and all accrued interest on, all outstanding Loans
of the Terminated Lender (and, other than as specified in clause (2) below, no
premium shall be payable in connection therewith); (2) on the date of such
assignment, the Company shall pay any amounts payable to such Terminated Lender
pursuant to Section 2.11 or 2.14 or otherwise and the Company shall reimburse
the Terminated Lender for any fees paid by such Terminated Lender pursuant to
Section 10.6 and in connection with the assignment; and (3) in the event such
Terminated Lender is a Non-Consenting Lender, each Replacement Lender shall
consent, at the time of such assignment, to each matter in respect of which
such Terminated Lender was a Non-Consenting Lender.  Upon the prepayment of all amounts owing to
any Terminated Lender, such Terminated

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Lender shall no longer
constitute a “Lender” for purposes hereof; provided, any
rights of such Terminated Lender to indemnification hereunder shall survive as
to such Terminated Lender.

Section 2.18           Survival.  All of the Company’s obligations under these
Sections 2.11 through 2.15 shall survive termination of the Commitments and
repayment of all other Obligations hereunder.

SECTION 3

CONDITIONS PRECEDENT

Section 3.1             Conditions to Effectiveness.  The effectiveness of this Agreement on the
Closing Date is subject to the satisfaction, or waiver in accordance with
Section 10.5, of the following conditions on or before October 16, 2006:

(a)           Credit Documents.  Administrative Agent shall have received
sufficient copies of this Agreement originally executed and delivered by each
Credit Party for each Lender.

(b)           Organizational
Documents; Incumbency.  Except as set
forth in Appendix C, Administrative Agent shall have received (i) sufficient
copies of each Organizational Document and, to the extent applicable, certified
as of a recent date by the appropriate governmental official, for each Credit
Party, each dated the Closing Date or a recent date prior thereto; (ii)
signature and incumbency certificates of the officers of such Person executing
this Agreement; (iii) resolutions of the Board of Directors or similar
governing body of each Credit Party approving and authorizing the execution,
delivery and performance of this Agreement, certified as of the Closing Date by
its secretary or an assistant secretary as being in full force and effect
without modification or amendment; (iv) a good standing certificate from the
applicable Governmental Authority of each Credit Party’s jurisdiction of
incorporation, organization or formation and in each jurisdiction in which it
is qualified as a foreign corporation or other entity to do business, each
dated a recent date prior to the Closing Date; and (v) such other documents as
Administrative Agent may reasonably request.

(c)           Organizational and
Capital Structure.  The
organizational structure and capital structure of the Company and its
Subsidiaries shall be as set forth in Schedule 4.1 of the Disclosure Letter.

(d)           Governmental
Authorizations and Consents.  Each
Credit Party shall have obtained all Governmental Authorizations and all
consents of other Persons, in each case that are necessary or advisable in
connection with the transactions contemplated by this Agreement and each of the
foregoing shall be in full force and effect and in form and substance
reasonably satisfactory to Administrative Agent.

(e)           Opinions of Counsel
to Credit Parties.  Lenders and their
respective counsel shall have received originally executed copies of the
favorable written opinions of counsel for Credit Parties, in the form of
Exhibit C and as to such other matters as Administrative Agent may reasonably
request, dated as of the Closing Date and otherwise in form and substance
reasonably satisfactory to Administrative Agent (and each Credit Party hereby
instructs such counsel to deliver such opinions to Agents and Lenders).

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(f)            Fees.  The Company shall have paid to Administrative
Agent and Lead Arrangers all fees payable on the Closing Date.

(g)           Solvency Certificate.  On the Closing Date, Administrative Agent
shall have received a Solvency Certificate from the Company in form, scope and
substance satisfactory to Administrative Agent demonstrating that the Company
and its Subsidiaries are Solvent.

(h)           Closing Date
Certificate.  The Company shall have
delivered to Administrative Agent an originally executed Closing Date
Certificate, together with all attachments thereto.

(i)            Credit Rating.  The Company will have a corporate credit
rating by each of S&P and Moody’s.

(j)            No Litigation.  There shall not exist any action, suit,
investigation, litigation or proceeding or other legal or regulatory developments,
pending or threatened in any court or before any arbitrator or Governmental
Authority that, in the reasonable opinion of Administrative Agent materially
impairs any of the transactions contemplated by the Closing Documents, or that
could have a Material Adverse Effect.

(k)           Fees and Expenses.  The Company shall have paid all accrued fees,
costs and expenses (including fees of counsel for the Administrative Agent) due
in connection with this Agreement to the extent due and payable on or prior to the
execution of this Agreement.

(l)            Funding Notice.  Administrative Agent shall have received a
fully executed and delivered Funding Notice;

(m)          Representations and
Warranties.  The representations and
warranties contained herein and in the other Credit Documents shall be true and
correct in all material respects on and as of the Closing Date; and

(n)           Events of Default.  No event shall have occurred and be
continuing or would result from the consummation of the Loans that would
constitute an Event of Default or a Default.

SECTION 4

REPRESENTATIONS AND WARRANTIES

In order to induce the Lenders to enter into this
Agreement and to make each Loan to be made thereby, each Credit Party
represents and warrants to each Lender that the following statements are true and
correct:

Section 4.1             Organization; Requisite Power and
Authority; Qualification.  Each of
the Company and its Subsidiaries (a) is duly organized, validly existing and in
good standing under the laws of its jurisdiction of organization (which is, as
of the Closing Date, identified in Schedule 4.1 of the Disclosure Letter), (b)
has all requisite power and authority to own and operate its properties, to
carry on its business as now conducted and as proposed to be conducted,

 50
 

 

to enter into the Credit
Documents to which it is a party and to carry out the transactions contemplated
thereby, and (c) is qualified to do business and in good standing in every
jurisdiction where its assets are located and wherever necessary to carry out
its business and operations, except in jurisdictions where the failure to be so
qualified or in good standing has not had, and could not be reasonably expected
to have, a Material Adverse Effect.  Set
forth on Schedule 4.1 of the Disclosure Letter is a complete and accurate list
of the Company and all of its Subsidiaries, showing as of the date hereof (as
to each such entity) the jurisdiction of its incorporation, the address of its
principal place of business and its U.S. taxpayer identification number or, in
the case of any Foreign Subsidiary that does not have a U.S. taxpayer
identification number, its unique identification number issued to it by its
jurisdiction of incorporation.  As of the
date hereof, the copy of the charter of each Credit Party and each amendment
thereto provided pursuant to Section 3.1 is a true and correct copy of each
such document, each of which is valid and in full force and effect.

Section 4.2             Capital Stock and Ownership.  The Capital Stock of each of the Company and
its Subsidiaries has been duly authorized and validly issued and is fully paid
and non-assessable.  Except as set forth
in Schedule 4.2 of the Disclosure Letter, as of the date hereof, there is no
existing option, warrant, call, right, commitment or other agreement to which
any of the Company’s Subsidiaries is a party requiring, and there is no
membership interest or other Capital Stock of the Company or any of its
Subsidiaries outstanding which upon conversion or exchange would require, the
issuance by any of the Company’s Subsidiaries of any additional membership
interests or other Capital Stock of any of the Company’s Subsidiaries or other
Securities convertible into, exchangeable for or evidencing the right to
subscribe for or purchase, a membership interest or other Capital Stock of any
of the Company’s Subsidiaries.  Schedule
4.2 of the Disclosure Letter correctly sets forth the ownership interest of the
Company and each of its Subsidiaries in their respective Subsidiaries as of the
Closing Date and indicates which Subsidiaries are First Tier Foreign
Subsidiaries.

Section 4.3             Due Authorization.  The execution, delivery and performance of
the Credit Documents have been duly authorized by all necessary action on the
part of each Credit Party that is a party thereto.

Section 4.4             No Conflict.  The execution, delivery and performance by
Credit Parties of the Credit Documents to which they are parties and the
consummation of the transactions contemplated by the Credit Documents do not
and will not (a) violate any provision of any law or any governmental rule or
regulation applicable to the Company or any of its Subsidiaries, any of the
Organizational Documents of the Company or any of its Subsidiaries, or any
order, judgment or decree of any court or other agency of government binding on
the Company or any of its Subsidiaries; (b) conflict with, result in a breach
of or constitute (with due notice or lapse of time or both) a default under any
Contractual Obligation of the Company or any of its Subsidiaries; (c) result in
or require the creation or imposition of any Lien upon any of the properties or
assets of the Company or any of its Subsidiaries; or (d) require any approval
of stockholders, members or partners or any approval or consent of any Person
under any Contractual Obligation of the Company or any of its Subsidiaries,
except for such approvals or consents which will be obtained on or before the
Closing Date and disclosed in writing to Lenders.

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Section 4.5             Governmental Consents.  The execution, delivery and performance by
Credit Parties of the Credit Documents to which they are parties and the
consummation of the transactions contemplated by the Credit Documents do not
and will not require any registration with, consent or approval of, or notice
to, or other action to, with or by, any Governmental Authority except for those
previously obtained.

Section 4.6             Binding Obligation.  Each Credit Document has been duly executed
and delivered by each Credit Party that is a party thereto and is the legally
valid and binding obligation of such Credit Party, enforceable against such
Credit Party in accordance with its respective terms, except as may be limited
by bankruptcy, insolvency, reorganization, moratorium or similar laws relating
to or limiting creditors’ rights generally or by equitable principles (regardless
of whether enforcement is sought in equity or at law).

Section 4.7             Historical Financial Statements.  While the Historical Financial Statements are
expected to be restated to reflect charges related to determination of grant
dates of stock options as disclosed in the Company’s Form 8-K dated September
13, 2006, such restatement should not have a material impact, if any, on the
Company’s historical revenues, cash position or non-stock option related
operating expenses or on the cash flow statements or balance sheet accounts of
the Company in such Historical Financial Statements.  As of the Closing Date, neither the Company
nor any of its Subsidiaries has any contingent liability or liability for
taxes, long-term lease or unusual forward or long-term commitment that is not
reflected in the Historical Financial Statements or the notes thereto and which
in any such case is material in relation to the business, operations,
properties, assets, condition (financial or otherwise) or prospects of the
Company and any of its Subsidiaries taken as a whole.

Section 4.8             No Material Adverse Change.  Since October 1, 2005, no event, circumstance
or change has occurred that has caused or evidences, either in any case or in
the aggregate, a Material Adverse Effect.

Section 4.9             Adverse Proceedings, Etc.  There are no Adverse Proceedings,
individually or in the aggregate, that could reasonably be expected to have a
Material Adverse Effect.  Neither the
Company nor any of its Subsidiaries (a) is in violation of any applicable laws
(including Environmental Laws) that, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect, or (b) is subject to
or in default with respect to any applicable final judgments, writs,
injunctions, decrees, rules or regulations of any court or any federal, state,
municipal or other governmental department, commission, board, bureau, agency
or instrumentality, domestic or foreign, that, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect.

Section 4.10           Payment of Taxes.  Except as otherwise permitted under Section
5.3, all tax returns and reports of the Company and its Subsidiaries required
to be filed by any of them have been timely filed, and all Taxes required to be
paid by the Company and its Subsidiaries or imposed upon their respective
properties, assets, income, businesses and franchises have been paid when due
and payable, other than any such Taxes for reserves which have been established
in conformity with GAAP.  There are no
written proposed Tax assessments against the Company or any of its Subsidiaries
which are not being actively contested by the Company or such Subsidiary in
good faith and by appropriate proceedings 

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(unless the Company or
its applicable Subsidiary intends to pay such assessment and the liability in
respect of such assessment has been reserved for in conformity with GAAP).

Section 4.11           No Defaults.  Except as set forth on Schedule 4.11 of the
Disclosure Letter, neither the Company nor any of its Subsidiaries is in
default in the performance, observance or fulfillment of any of its
obligations, covenants or conditions contained in any of its Contractual
Obligations, and no condition exists which, with the giving of notice or the
lapse of time or both, could constitute such a default, except where the
consequences, direct or indirect, of such default or defaults, if any, could
not reasonably be expected to have a Material Adverse Effect.

Section 4.12           Material Contracts.  Schedule 4.12 of the Disclosure Letter
contains a true, correct and complete list of all the Material Contracts in
effect on the Closing Date, and except as described thereon, all such Material
Contracts are in full force and effect and no defaults currently exist
thereunder, except where the consequences of such defaults could not reasonably
be expected to have a Material Adverse Effect.

Section 4.13           Governmental Regulation.  Neither the Company nor any of its
Subsidiaries is subject to regulation under the Public Utility Holding Company
Act of 2005, the Federal Power Act or the Investment Company Act of 1940 or
under any other federal or state statute or regulation which may limit its
ability to incur Indebtedness or which may otherwise render all or any portion
of the Obligations unenforceable. 
Neither the Company nor any of its Subsidiaries is a “registered
investment company” or a company “controlled” by a “registered investment
company” or a “principal underwriter” of a “registered investment company” as
such terms are defined in the Investment Company Act of 1940.

Section 4.14           Margin Stock.  Neither the Company nor any of its
Subsidiaries is engaged principally, or as one of its important activities, in
the business of extending credit for the purpose of purchasing or carrying any
Margin Stock.  No part of the proceeds of
the Loans made to such Credit Party will be used to purchase or carry any such
margin stock or to extend credit to others for the purpose of purchasing or
carrying any such margin stock or for any purpose that violates, or is
inconsistent with, the provisions of Regulation T, U or X of said Board of
Governors.

Section 4.15           Employee Matters.  Neither the Company nor any of its
Subsidiaries is engaged in any unfair labor practice that could reasonably be
expected to have a Material Adverse Effect. 
There is (a) no unfair labor practice complaint pending against the
Company or any of its Subsidiaries, or to the best knowledge of the Company,
threatened against any of them before the National Labor Relations Board and no
grievance or arbitration proceeding arising out of or under any collective
bargaining agreement that is so pending against the Company or any of its
Subsidiaries or, to the best knowledge of the Company, threatened against any
of them, (b) no strike or work stoppage in existence or, to the best knowledge
of the Company, threatened involving the Company or any of its Subsidiaries
that could reasonably be expected to have a Material Adverse Effect, and (c) to
the best knowledge of the Company, no union representation question existing
with respect to the employees of the Company or any of its Subsidiaries and, to
the best knowledge of the Company, no union organization activity that is
taking place, except

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(with respect to any
matter specified in clause (a), (b) or (c) above, either individually or in the
aggregate) such as is not reasonably likely to have a Material Adverse Effect.

Section 4.16           Employee Benefit Plans.  The Company, each of its Subsidiaries and
each of their respective ERISA Affiliates (a) are in compliance with all
applicable provisions and requirements of ERISA and the Internal Revenue Code
and the regulations and published interpretations thereunder with respect to
each Employee Benefit Plan, except as, individually or in the aggregate, could
not reasonably be expected to have a Material Adverse Effect, and (b) have
performed in all material respects all their obligations under each Employee
Benefit Plan.  Each Employee Benefit Plan
which is intended to qualify under Section 401(a) of the Internal Revenue Code
has received a favorable determination or opinion letter from the Internal
Revenue Service indicating that such Employee Benefit Plan is so qualified and,
to the Company’s knowledge, nothing has occurred subsequent to the issuance of
such determination or opinion letter which would cause such Employee Benefit
Plan to lose its qualified status.  No
liability to the PBGC (other than required premium payments) has been or is
expected to be incurred by the Company, any of its Subsidiaries or any of their
ERISA Affiliates.  No liability to the
Internal Revenue Service, any Employee Benefit Plan or any trust established
under Title IV of ERISA has been or is expected to be incurred by the Company,
any of its Subsidiaries or any of their ERISA Affiliates except as,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect. No ERISA Event has occurred or is reasonably expected
to occur except as, individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect. 
Except as set forth in Schedule 4.16 to the Disclosure Letter and to the
extent required under Section 4980B of the Internal Revenue Code or similar
state laws, no Employee Benefit Plan provides health or welfare benefits
(through the purchase of insurance or otherwise) for any retired or former
employee of the Company, any of its Subsidiaries or any of their respective
ERISA Affiliates.  The present value of
the aggregate benefit liabilities under each Pension Plan sponsored, maintained
or contributed to by the Company, any of its Subsidiaries or any of their ERISA
Affiliates (determined as of the end of the most recent plan year on the basis
of the actuarial assumptions specified for funding purposes in the most recent
actuarial valuation for such Pension Plan), did not exceed the aggregate
current value of the assets of such Pension Plan except as could not reasonably
be expected to have a Material Adverse Effect. 
As of the most recent valuation date for each Multiemployer Plan for
which the actuarial report is available, the potential liability of the
Company, its Subsidiaries and their respective ERISA Affiliates for a complete
withdrawal from such Multiemployer Plan (within the meaning of Section 4203 of ERISA),
when aggregated with such potential liability for a complete withdrawal from
all such Multiemployer Plans, based on information available pursuant to
Section 4221(e) of ERISA is zero.  The
Company, each of its Subsidiaries and each of their ERISA Affiliates have
complied with the requirements of Section 515 of ERISA with respect to each
such Multiemployer Plan and are not in material “default” (as defined in
Section 4219(c)(5) of ERISA) with respect to payments to a Multiemployer Plan.

Section 4.17           Certain Fees.  No broker’s or finder’s fee or commission
will be payable with respect hereto or any of the transactions contemplated
hereby.

Section 4.18           Solvency.  Each Credit Party is and, upon the incurrence
of any Obligation by such Credit Party on any date on which this representation
and warranty is made, will be, Solvent.

 54
 

 

Section 4.19           Compliance with Statutes, Etc.  Each of the Company and its Subsidiaries is
in compliance with all applicable statutes, regulations and orders of, and all
applicable restrictions imposed by, all Governmental Authorities, in respect of
the conduct of its business and the ownership of its property (including
compliance with all applicable Environmental Laws with respect to any Real
Estate Asset or governing its business and the requirements of any permits
issued under such Environmental Laws with respect to any such Real Estate Asset
or the operations of the Company or any of its Subsidiaries), except such
non-compliance that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.

Section 4.20           Disclosure. Except as referred to in
Section 4.7 with respect to the Historical Financial Statements, no statement,
information, report, certification, representation or warranty made by the
Company or any of its Subsidiaries or any Authorized Officer of the Company or
any of its Subsidiaries contained in any Credit Document or in any other
documents, certificates or written statements furnished to Lenders by or on
behalf of the Company or any of its Subsidiaries for use in connection with the
transactions contemplated hereby, when taken together with the Company’s
filings with the Securities and Exchange Commission, contains any untrue
statement of a material fact or omits to state a material fact (known to the
Company, in the case of any document not furnished by either of them) necessary
in order to make the statements contained herein or therein not misleading in
light of the circumstances in which the same were made.  Any projections and pro forma financial
information contained in such materials are based upon good faith estimates and
assumptions believed by the Company to be reasonable at the time made, it being
recognized by Lenders that such projections as to future events are not to be
viewed as facts and that actual results during the period or periods covered by
any such projections may differ from the projected results (it being understood
that forecasts and projections by their nature involve approximations and
uncertainties).  There are no facts known
(or which should upon the reasonable exercise of diligence be known) to the
Company (other than matters of a general economic nature) that, individually or
in the aggregate, could reasonably be expected to result in a Material Adverse
Effect and that have not been disclosed herein, in the Company’s filings with
the Securities and Exchange Commission or in such other documents, certificates
and statements furnished to Lenders for use in connection with the transactions
contemplated hereby.

Section 4.21           Senior Indebtedness.  The Company has taken all actions necessary
for the Obligations to constitute “Senior Indebtedness” and “Designated Senior
Indebtedness” for the purposes of and as defined in each indenture governing
Subordinated Indebtedness.

SECTION 5

AFFIRMATIVE COVENANTS

Each Credit Party covenants and agrees that until the
payment in full of all Obligations (other than inchoate indemnity obligations),
each Credit Party shall perform, and shall cause each of its Subsidiaries to
perform, all covenants in this Section 5.

Section 5.1             Financial Statements and Other Reports.  The Company will deliver to Administrative
Agent and (except as otherwise specifically provided below) the Lenders:

 55
 

 

(a)           Quarterly Financial
Statements.  (i)  As soon as available in respect of the third
Fiscal Quarter of the 2006 Fiscal Year, and (ii) as soon as available but in
any event within forty five (45) days after the end of each of the first three
Fiscal Quarters of the 2007 Fiscal Year or, in each case, if the scheduled date
for delivery thereof has been extended or waived under the Senior Subordinated
Notes Agreements, the Business Day immediately preceding the termination date
of such extension or waiver of such delivery under the Senior Subordinated Note
Agreements, the consolidated balance sheets of the Company and its Subsidiaries
as at the end of such Fiscal Quarter and the related consolidated statements of
income, stockholders’ equity and cash flows of the Company and its Subsidiaries
for such Fiscal Quarter and for the period from the beginning of such Fiscal
Year to the end of such Fiscal Quarter, setting forth in each case in
comparative form the corresponding figures for the corresponding periods of the
previous Fiscal Year, all in reasonable detail, together with a Financial
Officer Certification (which requirement shall be satisfied by the
certification provided in Exhibit 31 to the Company’s Quarterly Report on Form
10-Q) and a Narrative Report (which requirements shall be satisfied by the
Management’s Discussion and Analysis in the Company’s Quarterly Report on Form
10-Q for the Fiscal Quarter then ended) with respect thereto or, if such Form
10-Q is not available, the requirements of this Section 5.1(a) shall be
satisfied by delivery of financial information (including amounts of each type
of Indebtedness) in a form similar to that publicly distributed for the Fiscal
Quarter ended July 1, 2006 or as otherwise reasonably satisfactory to the
Administrative Agent; and together with an Officer’s Certificate that no
Default or Event of Default had occurred and was continuing as of the end of
such Fiscal Quarter;

(b)           Annual Financial
Statements.  (i) As soon as
available, and in any event within ninety (90) days after the end of the 2006
Fiscal Year or if, by such ninetieth day, the Form 10-Q for the third Fiscal
Quarter of 2006 has not been filed and if the scheduled date for delivery
thereof has been extended or waived under the Senior Subordinated Notes
Agreements, the Business Day immediately preceding the termination date for
such extension or waiver of such delivery under the Senior Subordinated Notes
Agreements, the consolidated balance sheets of the Company and its Subsidiaries
as at the end of such Fiscal Year and the related consolidated statements of
income, stockholders’ equity and cash flows of the Company and its Subsidiaries
for such Fiscal Year, setting forth in each case in comparative form the
corresponding figures for the previous Fiscal Year, in reasonable detail,
together with a Financial Officer Certification (which requirement shall be
satisfied by the certification provided in Exhibit 31 to the Company’s Annual
Report on Form 10-K) and a Narrative Report (which requirements shall be
satisfied by the Management’s Discussion and Analysis in the Company’s Annual
Report on Form 10-K for the Fiscal Year then ended) with respect thereto or, if
such Form 10-K is not available, the requirements of this Section 5.1(b) shall
be satisfied by delivery of financial information (including amounts of each
type of Indebtedness) in a form similar to that publicly distributed for the
Fiscal Quarter ended July 1, 2006 or as otherwise reasonably satisfactory to
the Administrative Agent; and (ii) concurrently with the delivery of such
Annual Report on Form 10-K, with respect to such consolidated financial
statements a report thereon of KPMG LLP or other independent certified public
accountants of recognized national standing selected by the Company, and
reasonably satisfactory to Administrative Agent (which report shall be
unqualified as to going concern and scope of audit, and shall state that such
consolidated financial statements fairly present, in all material respects, the
consolidated financial position of the Company and its Subsidiaries as at the
dates indicated and the results of their operations and their cash flows for
the periods indicated in conformity with GAAP and that the audit by such

 56
 

 

accountants in connection with such
consolidated financial statements has been made in accordance with generally
accepted auditing standards in the United States); and together with an
Officer’s Certificate that no Default or Event of Default had occurred and was
continuing as of the end of such Fiscal Year.

(c)           Statements of
Reconciliation after Change in Accounting Principles.  If, as a result of any change in accounting
principles and policies from those used in the preparation of the Historical
Financial Statements, the consolidated financial statements of the Company and
its Subsidiaries delivered pursuant to Section 5.1(a) or 5.1(b) will differ in
any material respect from the consolidated financial statements that would have
been delivered pursuant to such subdivisions had no such change in accounting
principles and policies been made, then, together with the first delivery of
such financial statements after such change, one or more a statements of
reconciliation for all such prior financial statements in form and substance
satisfactory to Administrative Agent;

(d)           Notice of Default.  Promptly upon any Authorized Officer of the
Company obtaining knowledge (i) of any condition or event that constitutes a
Default or an Event of Default or that notice has been given to the Company
with respect thereto; (ii) that any Person has given any notice to the Company
or any of its Subsidiaries or taken any other action with respect to any event
or condition set forth in Section 8.1(b); or (iii) of the occurrence of any
event or change that has caused or evidences, either in any case or in the
aggregate, a Material Adverse Effect, a certificate of its Authorized Officers
specifying the nature and period of existence of such condition, event or
change, or specifying the notice given and action taken by any such Person and
the nature of such claimed Event of Default, Default, default, event or
condition, and what action the Company has taken, is taking and proposes to
take with respect thereto;

(e)           Notice of Litigation.  Promptly upon any Authorized Officer of the
Company obtaining knowledge of (i) the institution of, or non-frivolous threat
of, any Adverse Proceeding not previously disclosed in writing by the Company
to Lenders, or (ii) any material development in any Adverse Proceeding that, in
the case of either (i) or (ii) if adversely determined, could be reasonably
expected to have a Material Adverse Effect, or seeks to enjoin or otherwise
prevent the consummation of, or to recover any damages or obtain relief as a
result of, the transactions contemplated hereby, written notice thereof
together with such other information as may be reasonably available to the
Company to enable Lenders and their counsel to evaluate such matters (subject
to the preservation of attorney-client privileges and other applicable
privileges);

(f)            ERISA.  Promptly upon becoming aware of the occurrence
of or forthcoming occurrence of any ERISA Event that, alone or together with
any other ERISA Events that have occurred, could reasonably be expected to
result in a liability of the Company and its Subsidiaries in an aggregate
amount exceeding $10.0 million, a written notice specifying the nature thereof,
what action the Company, any of its Subsidiaries or any of their respective
ERISA Affiliates has taken, is taking or proposes to take with respect thereto
and, when known, any action taken or threatened by the Internal Revenue
Service, the Department of Labor or the PBGC with respect thereto;

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(g)           Insurance Report.  As soon as practicable and in any event by
the last day of each Fiscal Year beginning with the Company’s 2007 Fiscal Year,
a report in form and substance satisfactory to Administrative Agent outlining
all material insurance coverage maintained as of the date of such report by the
Company and its Subsidiaries and all material insurance coverage planned to be
maintained by the Company and its Subsidiaries in the immediately succeeding
Fiscal Year;

(h)           Environmental
Reports and Audits.  As soon as
practicable following receipt thereof, copies of all environmental audits and
reports with respect to environmental matters at any Real Estate Facility or
which relate to any environmental liabilities of the Company or its
Subsidiaries which, in any such case, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect; and

(i)            Other Information.  (i) Promptly upon their becoming available,
copies of (A) all financial statements, reports, notices and proxy statements
sent or made available generally by the Company to its security holders acting
in such capacity or by any Subsidiary of the Company to its security holders
other than the Company or another Subsidiary of the Company, and (B) all
regular and periodic reports and all registration statements and prospectuses,
if any, filed by the Company or any of its Subsidiaries with any securities
exchange or with the Securities and Exchange Commission or any Governmental
Authority or private regulatory authority, and (ii) such other information and
data with respect to the Company or any of its Subsidiaries as from time to
time may be reasonably requested by Administrative Agent or any Lender.

Section 5.2             Existence.  Except as otherwise permitted under Section
6.6, each Credit Party will, and will cause each of its Subsidiaries to, at all
times preserve and keep in full force and effect its existence and all rights
and franchises, licenses and permits material to its business; provided, no Credit Party or any of its Subsidiaries shall
be required to preserve any such existence, right or franchise, licenses and
permits if the preservation thereof is no longer desirable in the conduct of
the business of such Person and that the loss thereof is not disadvantageous in
any material respect to such Person or to the Lenders.

Section 5.3             Payment of Taxes and Claims.  Each Credit Party will, and will cause each
of its Subsidiaries to, pay all Taxes imposed upon it or any of its properties
or assets or in respect of any of its income, businesses or franchises before
any penalty or fine accrues thereon, and all claims (including claims for
labor, services, materials and supplies) for sums that have become due and
payable and that by law have or may become a Lien upon any of its properties or
assets, prior to the time when any penalty or fine shall be incurred with
respect thereto; provided, no such Tax or claim
need be paid, so long as adequate reserves or other appropriate provision, as
shall be required in conformity with GAAP shall have been made therefor.  No Credit Party will, nor will it permit any
of its Subsidiaries to, file or consent to the filing of any consolidated income
Tax return with any Person (other than the Company or any of its Subsidiaries).

Section 5.4             Maintenance of Properties.  Each Credit Party will, and will cause each
of its Subsidiaries to, maintain or cause to be maintained in good repair,
working order and condition, ordinary wear and tear excepted, all material
properties used or useful in the business

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of the Company and its
Subsidiaries and from time to time will make or cause to be made all
appropriate repairs, renewals and replacements thereof except, in each case,
where the failure to do so could not reasonably be expected to result in a
Material Adverse Effect.

Section 5.5             Insurance.  The Company will maintain or cause to be
maintained, with financially sound and reputable insurers, such public liability
insurance, third party property damage insurance, business interruption
insurance and casualty insurance with respect to liabilities, losses or damage
in respect of the assets, properties and businesses of the Company and its
Subsidiaries as may customarily be carried or maintained under similar
circumstances by Persons of established reputation engaged in similar
businesses, in each case in such amounts (giving effect to self-insurance),
with such deductibles, covering such risks and otherwise on such terms and
conditions as shall be customary for such Persons.  Without limiting the generality of the
foregoing, the Company will maintain or cause to be maintained replacement
value property insurance on the assets of the Company and its Subsidiaries under
such policies of insurance, with such insurance companies, in such amounts,
with such deductibles, and covering such risks as are at all times carried or
maintained under similar circumstances by Persons of established reputation
engaged in similar businesses.

Section 5.6             Inspections; Maintaining Books and
Records.  Each Credit Party will, and
will cause each of its Subsidiaries to, permit any authorized representatives
designated by any Lender to visit and inspect any of the properties of any
Credit Party and any of its respective Subsidiaries, to inspect, copy and take
extracts from its and their financial and accounting records, and to discuss
its and their affairs, finances and accounts with its and their officers and
independent public accountants, all upon reasonable notice and at such
reasonable times during normal business hours and as often as may reasonably be
requested.  Notwithstanding anything to
the contrary in this Section 5.6, while no Event of Default exists, no Credit
Party will be required to disclose, permit the inspection, examination or
making of extracts, or discussion of, any document, information or other matter
that (i) constitutes non-financial trade secrets or non-financial proprietary
information, (ii) in respect of which disclosure to any Lender (or its
designated representative) is then prohibited by Law or any agreement binding
on such Credit Party or any of its Subsidiaries, or (iii) is subject to
attorney-client or similar privilege or constitutes attorney work product.  Each Credit Party will, and will cause each
of its Subsidiaries to, maintain proper books of record and account, in which
entries correct and accurate in all material respects and sufficient to prepare
financial statements in accordance with GAAP shall be made.

Section 5.7             Compliance with Laws.  Each Credit Party will comply, and shall
cause each of its Subsidiaries to comply, with the requirements of all
applicable laws, rules, regulations and orders of any governmental authority
(including all Environmental Laws, the Patriot Act and all other laws and
regulations relating to money laundering and terrorist activities),
noncompliance with which could reasonably be expected to have, individually or
in the aggregate, a Material Adverse Effect and except where compliance is
being contested in good faith and a bona fide dispute exists with respect
thereto.

Section 5.8             Environmental.  (a)  Environmental
Disclosure.  The Company will deliver
to Administrative Agent and the Lenders:

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(i)            promptly
upon request, copies of all environmental audits, investigations, analyses and
reports of any kind or character, whether prepared by personnel of the Company
or any of its Subsidiaries or by independent consultants, Governmental
Authorities or any other Persons, with respect to significant environmental
matters at any Real Estate Asset or with respect to any significant
Environmental Claim;

(ii)           promptly
upon the occurrence thereof, written notice describing in reasonable detail (A)
any Release that could constitute a violation of Environmental Laws that could
reasonably be expected to result in enforcement or corrective action, or that
is above applicable thresholds for corrective or remedial action, for which
penalties or fines could reasonably be expected to exceed $100,000 in any one
instance, or corrective action could reasonably be expected to exceed $1.0
million, and (B) any remedial action taken by the Company or any other Person
in response to (1) any Hazardous Materials Activities the existence of which
could reasonably be expected to result in one or more Environmental Claims
having, individually or in the aggregate, a Material Adverse Effect or (2) any
Environmental Claims that, individually or in the aggregate, could reasonably
be expected to result in a Material Adverse Effect, and (C) the Company’s
discovery of any occurrence or condition on any real property adjoining or in
the vicinity of any Real Estate Asset that could cause such Real Estate Asset
or any part thereof to be subject to any material restrictions on the
ownership, occupancy, transferability or use thereof under any Environmental
Laws;

(iii)          as
soon as practicable following the sending or receipt thereof by the Company or
any of its Subsidiaries, a copy of any and all written communications with
respect to (A) any Environmental Claims that, individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect, (B) any
Release that could constitute a violation of Environmental Laws that could
reasonably be expected to result in enforcement or corrective action, or that
is above applicable thresholds for corrective or remedial action, for which
penalties or fines could reasonably be expected to exceed $100,000 in any one
instance, or corrective action could reasonably be expected to exceed $1.0
million, and (C) any request for information from any governmental agency that
suggests such agency is investigating whether the Company or any of its
Subsidiaries may be potentially responsible for any Release of Hazardous
Material that could constitute a violation of Environmental Law or that is
above applicable thresholds for corrective or remedial action, any violation or
alleged violation of Environmental Laws or any remedial or other corrective action
pursuant to Environmental Laws, for which penalties or fines could reasonably
be expected to exceed $100,000 in any one instance, or corrective action could
reasonably be expected to exceed $1.0 million;

(iv)          prompt
written notice describing in reasonable detail (A) any proposed acquisition of
stock, assets, or property by the Company or any of its Subsidiaries that could
reasonably be expected to (1) expose the Company or any of its Subsidiaries to,
or result in, Environmental Claims that could reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect or (2) affect the
ability of the Company or any of its Subsidiaries to maintain in full force and
effect all material Governmental Authorizations required under any Environmental
Laws for their respective operations and (B) any proposed action to be taken by
the Company or any of its Subsidiaries to

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modify current operations in a manner that could reasonably be expected
to subject the Company or any of its Subsidiaries to any additional material
obligations or requirements under any Environmental Laws; and

(v)           with
reasonable promptness, such other documents and information as from time to
time may be reasonably requested by the Administrative Agent in relation to any
matters disclosed pursuant to this Section 5.8.

(b)           Hazardous Materials Activities, Etc.  The Company shall promptly take, and shall
cause each of its Subsidiaries promptly to take, any and all actions necessary
to (i) cure any violation of applicable Environmental Laws by the Company or
its Subsidiaries that could reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect, and (ii) make an appropriate response
to any Environmental Claim against the Company or any of its Subsidiaries and
discharge any obligations it may have to any Person thereunder where failure to
do so could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect.

(c)           Nothing in this Agreement is intended, or shall be deemed,
to relieve the Company of its obligations under Environmental Laws, or to
condone or encourage any disregard of such obligations.  The Company shall retain all responsibility
for compliance with Environmental Laws, including proper management of all Hazardous
Materials.  Nothing herein shall, or
shall be construed in any manner to, subject any Agent, any Lender or any other
Indemnitee to liability under any Environmental Laws as an owner, operator or
other liable party for the environmental compliance or conditions or
contamination at or from or with respect to in any manner, any Real Estate
Asset, and no act by the Administrative Agent shall be deemed or construed as
outside or not protected by any secured party safe harbor protections under any
Environmental Laws or otherwise be considered as participation by any Agent,
any Lender or any other Indemnitee in the management of any Real Estate Asset
or as an owner or operator of any Real Estate Asset.

Section 5.9             Subsidiaries.  In the event that any Person becomes a
Domestic Subsidiary (other than a Domestic Subsidiary created for purposes
permitted under Section 6.4 until the time of the closing of such transaction
and for so long as it has only nominal assets) of the Company, the Company
shall (a) promptly cause such Subsidiary to become a Guarantor hereunder by
executing and delivering to Administrative Agent a Counterpart Agreement, and
(b) take all such actions and execute and deliver, or cause to be executed and
delivered, all such documents, instruments, agreements, and certificates deemed
reasonably necessary or desirable by the Administrative Agent to become a
Guarantor hereunder as though it had been a Credit Party on the Closing
Date.  With respect to each such
Subsidiary, the Company shall promptly send to Administrative Agent written
notice setting forth with respect to such Person (i) the date on which such
Person became a Subsidiary of the Company, and (ii) all of the data required to
be set forth in the Disclosure Letter pursuant to Section 4.1 and 4.2 with
respect to all Subsidiaries of the Company; provided, such
written notice shall be deemed to supplement the Disclosure Letter for all
purposes hereof.

Section 5.10           Further
Assurances.  At any time or from time
to time upon the request of Administrative Agent, each Credit Party will, at
its expense, promptly execute,

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acknowledge and deliver
such further documents and do such other acts and things as Administrative
Agent may reasonably request in order to effect fully the purposes of the
Credit Documents.  In furtherance and not
in limitation of the foregoing, each Credit Party shall take such actions as
Administrative Agent may reasonably request from time to time to ensure that
the Obligations are guarantied by the Guarantors.

Section 5.11           Senior
Indebtedness.  The Obligations are
hereby designated as “Senior Indebtedness”, “Designated Senior Indebtedness”,
“Guarantor Senior Indebtedness” and “Designated Guarantor Senior Indebtedness”
for the purposes of and as defined in each indenture governing Subordinated
Indebtedness.  The Company shall take all
additional actions that may be necessary for the Obligations to continue at all
times to constitute “Senior Indebtedness”, “Designated Senior Indebtedness”,
“Guarantor Senior Indebtedness” and “Designated Guarantor Senior Indebtedness”
(to the extent applicable) under all Subordinated Indebtedness and otherwise be
entitled to all the benefits of any Senior Indebtedness under all Subordinated
Indebtedness.

Section 5.12           Certificates
of Good Standing; Organizational Documents. 
Within 15 days of the Closing Date (unless a longer period of time is
agreed by the Administrative Agent), the Company shall deliver to
Administrative Agent the certificates of good standing and Organizational Documents
specified in Appendix C.

SECTION 6

NEGATIVE COVENANTS

Each Credit Party covenants and agrees that, until the
payment in full of all Obligations (other than inchoate indemnity obligations),
such Credit Party shall perform, and shall cause each of its Subsidiaries to perform,
all covenants in this Section 6.

Section 6.1             Indebtedness.  (a) 
(i)  No Credit Party shall, nor
shall it permit any of its Subsidiaries to, Incur any Indebtedness, except
Permitted Indebtedness, if after giving effect to the Incurrence of such Indebtedness
and the application of the proceeds thereof, the Consolidated Interest Coverage
Ratio would be less than or equal to 2.00 to 1.00.  (ii) In addition to the limitations in
sub-clause (i), no Credit Party shall, nor shall it permit any of its Subsidiaries
to, Incur any Senior Indebtedness if after giving effect to the Incurrence of
such Indebtedness and the application of the proceeds thereof, the Senior
Leverage Ratio would be greater than 1.75 to 1.00; provided,
however, that notwithstanding the limitations
of this sub-clause (ii), the Company and its Subsidiaries may Incur revolving
credit loans and letters of credit in a maximum aggregate outstanding amount of
$500.0 million under the Senior Secured Credit Agreement and any refinancing
thereof (and, for the avoidance of doubt, such revolving credit loans or
letters of credit, if Incurred, would constitute Senior Obligations).

(b)           Permitted Indebtedness means the following:

(i)            the
Obligations;

(ii)           Intercompany
Indebtedness;

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(iii)          Indebtedness
with respect to (A) the 3.0% Notes (until the satisfaction and discharge of the
indenture under which the 3.0% Notes were issued with the proceeds of the Loans
as contemplated hereby); (B) the Senior Obligations and any refinancings
thereof; and (C) the Senior Subordinated Notes and any Permitted Refinancings
thereof;

(iv)          Indebtedness
incurred by the Company or any of its Subsidiaries arising from agreements
providing for indemnification, adjustment of purchase price or similar
obligations, or from guaranties or letters of credit, surety bonds or
performance bonds securing the performance of the Company or any such
Subsidiary pursuant to such agreements, in connection with acquisitions
permitted under Section 6.4 or permitted dispositions of any business, assets
or Subsidiary of the Company or any of its Subsidiaries;

(v)           Indebtedness
which may be deemed to exist pursuant to any guaranties, performance, surety,
statutory, appeal or similar obligations incurred in the ordinary course of
business;

(vi)          guaranties
in the ordinary course of business of the obligations owed to or of suppliers,
customers, franchisees and licensees of the Company and its Subsidiaries;

(vii)         (A)
guaranties by the Company of Indebtedness of a Guarantor or guaranties by a
Subsidiary of the Company of Indebtedness of the Company or a Guarantor with
respect, in each case, to Indebtedness otherwise permitted to be incurred
pursuant to this Section 6.1; (B) guaranties by the Company or a Guarantor of
Indebtedness of Foreign Subsidiaries, which Indebtedness of Foreign
Subsidiaries exists on the Closing Date; (C) guaranties by the Company or any
Subsidiary of the customary indemnification obligations of its Foreign
Subsidiaries and interest, fees and expenses arising under any Receivables
Program; and (D) guaranties by the Company or any Guarantor of customary
indemnification obligations and interest, fees and expenses arising under any
Receivables Program;

(viii)        Indebtedness
(other than the Indebtedness referred to in clause (iii)) existing on the
Closing Date and Permitted Refinancing Indebtedness in respect thereof;

(ix)           Indebtedness
with respect to Capital Leases, provided that
the aggregate outstanding principal amount of Indebtedness under this Section
6.1(b)(ix) and Section 6.1(b)(x) below shall not exceed at any time 10% of
Total Assets;

(x)            purchase
money Indebtedness, provided that
the aggregate outstanding principal amount of Indebtedness under this Section
6.1(b)(x) and Section 6.1(b)(ix) above shall not exceed at any time 10% of
Total Assets; provided further, that any such
Indebtedness and Indebtedness under Section 6.1(b)(ix) shall not exceed 100.0%
of the fair market value (as determined by the Company in good faith) on the
date of Incurrence thereof in the case of Capital Leases and on the date of the
acquisition, construction, lease, improvement or installation of the underlying
asset in the case of purchase money Indebtedness, of such asset;

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(xi)           Indebtedness
secured by the Corporate Head Office Campus in a principal amount not to exceed
the greater of (A) $50.0 million and (B) the Fair Market Value of the Corporate
Head Office Campus;

(xii)          Indebtedness
of Foreign Subsidiaries in an aggregate principal amount not to exceed at any
time 10% of Consolidated Tangible Foreign Assets; provided
(i) no Default or Event of Default shall have occurred or be continuing or
would be caused by such Incurrence of Indebtedness and (ii) such Indebtedness
shall be used solely (A) to fund working capital or used for general corporate
purposes of such Foreign Subsidiary; or (B) to pay dividends or any other
distributions on or in respect of its capital stock or pay Indebtedness or
other obligation owed, or make any loans or advances, in each case, to the
Company or any Guarantor;

(xiii)         Indebtedness
under Hedge Agreements entered into from time to time by the Company or any of
its Subsidiaries for the purpose of fixing, managing or hedging interest rate,
commodity or currency risk in the ordinary course of the financial management
of the Company or its Subsidiaries and not for speculative purposes;

(xiv)        reimbursement
obligations in respect of letters of credit, bank guarantees and banker’s
acceptances;

(xv)         Indebtedness
of a Subsidiary outstanding on the date such Subsidiary was acquired by the
Company or any of its Subsidiaries or assumed in connection with the
acquisition of assets from a Person (other than Indebtedness incurred as
consideration in, or to provide all or any portion of the funds or credit
support utilized to consummate, the transaction or series of transactions
pursuant to which such Subsidiary became a Subsidiary of the Company or was
otherwise acquired by the Company); provided that
the aggregate principal amount (or accreted value, as applicable) of all such
Indebtedness incurred pursuant to this clause (xv) at any time outstanding
shall not exceed $50.0 million;

(xvi)        customary
indemnification obligations pursuant to any Receivables Program; and

(xvii)       other
unsecured Indebtedness of the Company and its Subsidiaries in an aggregate principal
amount not to exceed at any time $150.0 million.

Section 6.2             Liens.  No Credit Party shall, nor shall it permit
any of its Subsidiaries to, directly or indirectly, create, incur, assume or
permit to exist any Lien on or with respect to any property or asset of any
kind (including any document or instrument in respect of goods or accounts
receivable) of the Company or any of its Subsidiaries, whether now owned or
hereafter acquired, or any income or profits therefrom, or file or permit the
filing of, or permit to remain in effect, any financing statement or other
similar notice of any Lien with respect to any such property, asset, income or
profits under the UCC of any State or under any similar recording or notice
statute, except:

(a)           Liens for Taxes not yet due and payable, or if obligations
with respect to such Taxes are being contested in good faith by appropriate
proceedings promptly instituted and

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diligently conducted, provided
that any reserve or other appropriate provision that shall be required in
conformity with GAAP shall have been made therefor;

(b)           statutory, common law or contractual Liens of landlords,
creditor depository institutions or institutions holding securities accounts
(including rights of set-off or similar rights and remedies), carriers,
warehousemen, mechanics, repairmen, workmen and materialmen, and other Liens
imposed by law (other than any such Lien imposed pursuant to Section 401
(a)(29) or 412(n) of the Internal Revenue Code or by ERISA), in each case
incurred in the ordinary course of business (i) for amounts not yet overdue or
(ii) for amounts that are overdue and that (in the case of any such amounts
overdue for a period in excess of 60 days) are being contested in good faith by
appropriate proceedings, so long as such reserves or other appropriate
provisions, if any, as shall be required by GAAP shall have been made for any
such contested amounts;

(c)           Liens incurred in the ordinary course of business in
connection with workers’ compensation, unemployment insurance and other types
of social security, or to secure the performance of tenders, statutory
obligations, surety and appeal bonds, bids, leases, government contracts, trade
contracts, contracts for the purchase of property, performance and
return-of-money bonds, and other similar obligations (exclusive of obligations
for the payment of borrowed money or other Indebtedness);

(d)           easements, rights-of-way, restrictions, encroachments, and
other minor defects or irregularities in title, in each case which do not and
are not reasonably expected to interfere in any material respect with the
ordinary conduct of the business of the Company or any of its Subsidiaries;

(e)           any interest or title of a lessor or sublessor under any
lease of real estate not prohibited hereby;

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

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

(h)           Liens in favor of customs and revenue authorities arising
as a matter of law to secure payment of customs duties in connection with the
importation of goods;

(i)            any zoning or similar law or right reserved to or vested
in any governmental office or agency to control or regulate the use of any real
property;

(j)            licenses or sublicenses of patents, trademarks,
copyrights and other intellectual property rights granted by the Company or any
of its Subsidiaries in the ordinary course of business and not interfering in
any respect with the ordinary conduct of the business of the Company or such
Subsidiary;

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(k)           Liens existing on the Closing Date and any renewals or
extensions thereof, provided that
the property covered thereby is not increased;

(l)            Liens securing Indebtedness permitted pursuant to Section
6.1(b)(ix) or 6.1(b)(x); provided, any
such Lien shall encumber only the asset acquired with the proceeds of such
Indebtedness and any accessions, additions, parts, replacements, fixtures,
improvements and attachments thereto, and the proceeds thereof and customary
cash security deposits;

(m)          Liens securing Indebtedness permitted pursuant to Section 6.1(b)(xi);
provided, any such Lien shall encumber
only the Corporate Head Office Campus and such other property relating to the
Corporate Head Office Campus as is normally described in a mortgage or deed of
trust;

(n)           Liens encumbering assets of Foreign Subsidiaries securing
Indebtedness permitted pursuant to Section 6.1(b)(xii) or other obligations not
prohibited hereby in an aggregate amount not to exceed at any time 5.0% of
Consolidated Tangible Foreign Assets; and Liens encumbering assets of Foreign Subsidiaries
securing their obligations arising under any Receivables Program;

(o)           Liens securing Indebtedness with respect to Senior
Obligations;

(p)           Liens consisting of pledges of cash collateral to secure
letters of credit, bank guarantees and banker’s acceptances to the extent
permitted hereunder;

(q)           Liens consisting of pledges of cash collateral to secure
Hedge Agreements to the extent permitted hereunder;

(r)            Liens on Property at the time the Company or any
Subsidiary acquired such Property in a transaction permitted hereunder,
including any acquisition by means of a merger, amalgamation or consolidation
with or into the Company or any Subsidiary; provided, however, that such Lien may not extend to any other Property
of the Company or any Subsidiary; provided  further that such Liens shall not have been created in
anticipation of or in connection with the transaction or series of transactions
pursuant to which such Property was acquired by the Company or any Subsidiary;

(s)           Liens on the Property of a Person existing at the time
such Person becomes a Subsidiary of the Company in a transaction permitted
hereunder; provided, however,
that any such Lien may not extend to any other Property of the Company or any
other Subsidiary that is not a direct Subsidiary of such Person; provided  further that
any such Lien was not created in anticipation of or in connection with the
transaction or series of transactions pursuant to which such Person became a
Subsidiary of the Company;

(t)            Liens securing judgments, writs, warrants or similar
processes not constituting an Event of Default under Section 8.1(h);

(u)           Liens on specific items of inventory or other goods and
the proceeds thereof securing such Person’s obligations in respect of bankers’
acceptances issued or credited

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for the account of such Person to facilitate
the purchase, shipment or storage of such inventory or goods;

(v)           Liens arising under consignment or similar arrangements
for the sale of goods in the ordinary course of business;

(w)          Liens on insurance proceeds securing the payment of
financed insurance premiums;

(x)            leases or subleases granted to others in the ordinary
course of business which do not interfere in any material respect with the
business operations of the Company and its Subsidiaries taken as a whole;

(y)           customary Liens granted in favor of a trustee to secure
fees and other amounts owing to such trustee under an indenture or other
agreement pursuant to which Indebtedness permitted by Section 6.1 is issued;

(z)            other Liens on assets securing Indebtedness or other
obligations in an aggregate amount not to exceed $10.0 million at any time
outstanding;

(aa)         Liens on Receivables Program Assets in connection with a
Receivables Program;

(bb)         Liens in favor of the Company; and

(cc)         Liens arising out of transactions relating to tax planning
strategies of the Company and its Subsidiaries.

Section 6.3             No
Further Negative Pledges.  Except
with respect to (a) specific property encumbered to secure payment of
particular Indebtedness or to be sold pursuant to an executed agreement with
respect to a permitted Asset Sale or other sale or disposition of property not
constituting an Asset Sale and permitted hereunder; (b) restrictions by reason
of customary provisions restricting assignments, subletting or other transfers
contained in leases, licenses and other agreements entered into in the ordinary
course of business (provided that
such restrictions are limited to the property or assets secured by such Liens
or the property or assets subject to such leases, licenses or similar
agreements, as the case may be); (c) restrictions imposed by the Senior Secured
Credit Documents or the Senior Subordinated Notes Documents; (d) restrictions
and conditions applicable to any Subsidiary acquired after the date hereof if
such restrictions and conditions existed at the time such Subsidiary was
acquired, were not created in anticipation of such acquisition and apply solely
to such acquired Subsidiary; (e) restrictions contained in any agreements
evidencing Indebtedness permitted by Section 6.1(b)(xii) and applying solely to
such Subsidiary and its Subsidiaries; (f) restrictions existing on the Closing
Date; (g) restrictions in agreements entered into in connection with the
incurrence of Permitted Liens, to the extent they condition, prohibit or limit
the ability of the Agents or the Lenders from obtaining a Lien on the property,
rights and assets subject to such Permitted Lien; and (h) restrictions imposed
in connection with any Receivables Program, no Credit Party nor any of its Subsidiaries
shall enter into any agreement prohibiting the creation or assumption of any
Lien upon any of its properties or assets, whether now owned or hereafter
acquired.

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Section 6.4             Restricted
Payments.  (a)  No Credit Party shall, nor shall it permit
any of its Subsidiaries through any manner or means or through any other Person
to, make any Restricted Payment if at the time thereof and after giving effect
thereto,

(i)            a
Default or Event of Default shall have occurred and be continuing,

(ii)           the
Company could not incur at least $1.00 of additional Indebtedness under Section
6.1(a)(i), or

(iii)          the
aggregate amount of such Restricted Payment and all other Restricted Payments
made or declared since the Closing Date (the amount of any Restricted Payment,
if made other than in cash, to be based upon Fair Market Value on the date
made) would exceed an amount equal to the sum of:

(A)          50%
of Consolidated Net Income accrued during the period (treated as one accounting
period) from the beginning of the Fiscal Quarter during which the Closing Date
occurs to the end of the most recent Fiscal Quarter for which financial
statements have been made publicly available at the time of such Restricted
Payment (or if the aggregate amount of the Consolidated Net Income for such period
shall be a deficit, less 100% of such deficit), plus

(B)           100%
of Capital Stock Sale Proceeds, plus

(C)           100%
of the aggregate net cash proceeds received by the Company or any Subsidiary
from the issuance or sale after the Closing Date of convertible or exchangeable
Indebtedness that has been converted into or exchanged for Capital Stock (other
than Disqualified Stock) of the Company, excluding

(1)           any such Indebtedness issued or sold
to the Company or a Subsidiary or an employee stock ownership plan or trust
established by the Company or any such Subsidiary for the benefit of their
respective employees, and

(2)           the aggregate amount of any Cash or
other Property distributed by the Company or any Subsidiary upon any such
conversion or exchange, plus

(D)          an
amount equal to in the case of the net reduction in Investments (which
Investments constituted a Restricted Payment when made) in any Person other
than the Company or a Subsidiary resulting from dividends, repayments of loans
or advances or other transfers of property, in each case to the Company or any
Subsidiary from such Person, or from the sale or other disposition of any such
Investment to any Person other than the Company or a Subsidiary, the lesser of:

(x)            the cash return of capital with
respect to such Investment; and

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(y)           the aggregate value of such
Investment; in the case of either clause (x) or (y) in this subparagraph
(a)(iii)(D), less the cost of the disposition of such Investment; provided, however, that
no amount will be included under this paragraph (D) to the extent already
included in the calculation of Consolidated Net Income;

plus

(E)           $25.0
million.

(b)           Notwithstanding the limitations of subsection 6.4(a), the
Company or any Subsidiary may:

(1)           pay dividends on its Capital Stock
within 60 days of the declaration thereof if, on the declaration date, such
dividends could have been paid in compliance with this Agreement; provided, however, that such dividends shall be included in
the calculation of the amount of Restricted Payments pursuant to clause
(a)(iii) of this Section 6.4;

(2)           purchase, repurchase, redeem,
defease, acquire or retire for value Capital Stock or Subordinated Indebtedness
of the Company or any Subsidiary in exchange for, upon conversion of or out of
the proceeds of the substantially concurrent sale of, Capital Stock of the
Company whether contemporaneously or in the future (other than Disqualified
Stock that is not Permitted Refinancing Indebtedness and other than Capital
Stock issued or sold to a Subsidiary of the Company or an employee stock
ownership plan or trust established by the Company or any such Subsidiary for
the benefit of their employees) or any Permitted Refinancing Indebtedness; provided, however, that:

(A)          such purchase, repurchase, redemption,
legal defeasance, acquisition or retirement shall be excluded in the
calculation of the amount of Restricted Payments pursuant to clause (a)(iii) of
this Section 6.4; and

(B)           the Capital Stock Sale Proceeds from
such exchange or sale shall be excluded from the calculation pursuant to
paragraph (a)(iii)(B) of this Section 6.4;

(3)           purchase, repurchase, redeem,
defease, acquire or retire for value any Subordinated Indebtedness in exchange
for, or out of the proceeds of the sale of, Permitted Refinancing Indebtedness;

(4)           so long as no Default or Event of
Default has occurred and is continuing, purchase, repurchase, redeem, defease,
acquire or retire for value Capital Stock of the Company or any Subsidiary of
the Company from any officer, director, employee or consultant of the Company
or its Subsidiaries in an aggregate amount not to exceed $10.0 million per
year;

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(5)           extend loans to employees, officers
and directors of the Company and its Subsidiaries in compliance with applicable
laws and in an amount not to exceed $5.0 million in the aggregate at any one
time outstanding;

(6)           acquire the Capital Stock of the
Company in connection with the exercise of stock options or stock appreciation
rights by way of cashless exercise or in connection with the satisfaction of
withholding tax obligations;

(7)           in connection with an acquisition by
the Company or by any of its Subsidiaries, receive or accept the return to the
Company or any of its Subsidiaries of Capital Stock of the Company or any of
its Subsidiaries constituting a portion of the purchase price consideration in
settlement of indemnification claims;

(8)           purchase fractional shares of the
Capital Stock of the Company arising out of stock dividends, splits or
combinations or business combinations;

(9)           effect a purchase, repurchase,
redemption, defeasance or acquisition of convertible Subordinated Indebtedness,
provided that on a pro forma
basis, after giving effect thereto, the Unencumbered Cash and Available Credit
of the Company and the Subsidiaries shall equal or exceed $500 million;

(10)         honor any conversion request by a
holder of any convertible Indebtedness of the Company or its Subsidiaries and
make cash payments in lieu of fractional shares in connection with any
conversion of convertible Indebtedness in accordance with the terms of any
convertible Indebtedness;

(11)         make any payment on or with respect to,
or repurchase, redeem, defease or acquire or retire for value, any Subordinated
Indebtedness convertible into Capital Stock (other than Disqualified Stock) of
the Company in connection with:

(A)          an optional redemption of such
convertible Subordinated Indebtedness pursuant to the terms thereof; provided that, the current market price per share of the
Company’s common stock (calculated based upon the average closing price as
reported on the Nasdaq National Market (or any national securities exchange on
which such common stock is listed) for the 30-trading day period immediately
preceding the date any notice of redemption is sent or published) into which
such Indebtedness is convertible equals or exceeds 150% of the conversion price
in effect for such Indebtedness on the date of such notice; and

(B)           the payment by the Company of cash in
lieu of any fractional shares deliverable upon conversion of any Indebtedness
in compliance with the terms of the instruments governing such Indebtedness;

provided that any amounts paid
pursuant to this clause (11) will be deducted in determining the amount of
Restricted Payments permitted under clause (a)(iii) of this Section 6.4;

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(12)         engage in transactions relating to tax
planning strategies of the Company and its Subsidiaries; and

(13)         so long as no Default or Event of
Default has occurred and is continuing, make Restricted Payments in an
aggregate amount not to exceed $50.0 million.

Section 6.5  Restrictions
on Subsidiary Distributions. 
(a)  The Company shall not, and
shall not permit any Subsidiary to, create or otherwise cause any consensual
restriction on the right of any Subsidiary to:

(1)           pay dividends, in cash or otherwise,
or make any other distributions on or in respect of its Capital Stock, or pay
any Indebtedness or other obligation owed, to the Company or any other
Subsidiary;

(2)           make any loans or advances to the
Company or any other Subsidiary; or

(3)           transfer any of its Property to the
Company or any other Subsidiary.

(b)           The
limitations set forth in subsection (a) of this Section will not apply:

(1)           with respect to clauses (1), (2) and
(3) of subsection (a) of this Section, to restrictions:

(A)          in effect on the Closing Date;

(B)           imposed on a Subsidiary and existing
at the time it became a Subsidiary if such restrictions were not created in
connection with or in anticipation of the transaction or series of transactions
pursuant to which such Subsidiary became a Subsidiary or was acquired by the
Company;

(C)           that result from the Refinancing or
subsequent Refinancing of Indebtedness Incurred pursuant to an agreement,
instrument or contract referred to in sub-clause (A), (B), (E), (F), (H), (I),
(J) or (K) of this clause (1) of subsection (b) of this Section 6.5, provided that the restrictions existing under or by reason
of any such agreement, instrument or contract are not materially less
favorable, taken as a whole, to the Lenders than those under the agreement
evidencing the Indebtedness so Refinanced;

(D)          existing by virtue of, or arising
under, applicable law, regulation, order, approval, license, permit, grant or
similar restriction, in each case issued or imposed by a Governmental
Authority;

(E)           under any agreement, instrument or
contract affecting Property or a Person at the time such Property or Person was
acquired by the Company or any Subsidiary, so long as such restriction relates
solely to the Property or Person so acquired and was not created in connection
with or in anticipation of such acquisition;

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(F)           under or in connection with any joint
venture agreements, partnership agreements, stock sale agreements, asset sale
agreements and other similar agreements, provided that
any such agreements are entered into in the ordinary course of business and in
good faith and that such restrictions are reasonably customary for such
agreements;

(G)           under any customary provisions with
respect to cash or other deposit or net worth requirements under agreements,
instruments or contracts entered into in the ordinary course of business and
consistent with past practices;

(H)          under any agreement entered into in
connection with the Incurrence of Indebtedness of the type described in Section
6.1(b)(xii);

(I)            under any customary provisions under
any agreements, instruments or contracts relating to any Receivables Program;

(J)            under any customary provisions under
any agreements, instruments or contracts relating to any Synthetic Lease of the
Corporate Head Office Campus;

(K)          under any agreement, instrument or
contract relating to Indebtedness that is permitted to be Incurred pursuant to
Section 6.1(b)(iii);

(L)           under any agreement, instrument or
contract entered into in connection with any transactions relating to tax
planning strategies of the Company and its Subsidiaries; and

(M)         any restriction with respect to
Property or assets subject to a Lien permitted hereunder imposed by the secured
party.

(2)           only
with respect to clause (3) of subsection (a) of this Section to:

(A)          customary provisions restricting
subletting or assignment of leases or customary provisions in licenses or other
agreements that restrict assignment of such agreements or rights thereunder;

(B)           customary provisions restricting the
sale or other disposition of Property contained in agreements limiting the
transfer of Property pending the closing of such sale; and

(C)           restrictions on the sale or other
disposition of property acquired, constructed, improved or leased (and any
additions, parts, attachments, fixtures, leasehold improvements, proceeds,
improvements or accessions related thereto) in whole or in part under any
agreement, instrument or contract relating to Indebtedness permitted to be
Incurred under Sections 6.1(b)(ix) and (x).

Section 6.6             Fundamental
Changes; Disposition of Assets. 
(a)  No Credit Party shall, nor
shall it permit any of its Subsidiaries to, consummate any transaction of
merger or

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consolidation, or
liquidate, wind-up or dissolve itself (or suffer any liquidation or
dissolution), except that (i) any Subsidiary of the Company may be merged or
consolidated with or into the Company or any other Subsidiary of the Company,
or be liquidated, wound up or dissolved, and (ii) the Company and its
Subsidiaries may make Permitted Investments and Restricted Payments permitted
by Section 6.4.

(b)           The Company shall not, and shall not permit any Subsidiary
to, consummate any Asset Sale unless:

(1)           the Company or such Subsidiary receives
consideration in connection with such Asset Sale at least equal to the Fair
Market Value of the property subject to such Asset Sale;

(2)           at least 75% of the consideration
received by the Company or such Subsidiary in connection with such Asset Sale
is in the form of any one or a combination of the following:  (A) Cash, Cash Equivalents or Additional
Assets, (B) the assumption by the purchaser of liabilities of the Company or
any Subsidiary in the amounts as shown on the latest consolidated balance sheet
on which such liability appears (other than contingent liabilities and
liabilities that are by their terms subordinated to the Obligations hereunder),
as a result of which the Company and the Subsidiaries are no longer obligated
with respect to such liabilities, (C) securities, notes or other obligations
received by the Company or such Subsidiary to the extent such securities, notes
or other obligations are converted by the Company or such Subsidiary into Cash,
Cash Equivalents or Additional Assets within 90 days of such Asset Sale, and
(D) Indebtedness of a Subsidiary that is no longer a Subsidiary as a result of
such Asset Sale if the Company and all of its Subsidiaries immediately are
released from all guarantees, if any, of payments or other obligations with
respect to such Indebtedness and such Indebtedness is no longer the liability
of the Company or any of its Subsidiaries; and

(3)           in connection with any Asset Sale for
consideration with a value in excess of $50.0 million, the Company delivers an
Officer’s Certificate to the Administrative Agent certifying that such Asset
Sale complies with clauses (1) and (2) of subsection (b) of this Section.

(c)           The Net Available Cash (or any portion thereof) from Asset
Sales shall be applied by the Company to repay the Loans as provided in Section
2.4.

Section 6.7             Transactions
with Shareholders and Affiliates.  No
Credit Party shall, nor shall it permit any of its Subsidiaries to, directly or
indirectly, enter into or permit to exist any transaction (including the
purchase, sale, lease or exchange of any Property or the rendering of any
service) with any holder of 5% or more of any class of Capital Stock of the
Company or any of its Subsidiaries or with any Affiliate of the Company or of
any such holder, on terms that are less favorable to the Company or that
Subsidiary, as the case may be, than those that might be obtained at the time
from a Person who is not such a holder or Affiliate; provided,
the foregoing restriction shall not apply to (a) any transaction between the
Company and any of its Subsidiaries or between any of such Subsidiaries; (b)
reasonable and customary fees paid to members of the board of directors (or
similar governing body) of the Company and its

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Subsidiaries; (c)
compensation arrangements and benefit plans for officers and other employees of
the Company and its Subsidiaries entered into or maintained or established in
the ordinary course of business; (d) any Restricted Payment permitted by
Section 6.4; and (e) any Permitted Investment.

Section 6.8             Conduct
of Business.  From and after the
Closing Date, no Credit Party shall, nor shall it permit any of its
Subsidiaries to, engage in any business other than (i) the businesses engaged
in by the Company and its Subsidiaries on the Closing Date and any Permitted
Business and (ii) such other lines of business as may be consented to by
Requisite Lenders.

Section 6.9             Amendments,
Waivers or Prepayments with respect to Senior Indebtedness or Subordinated
Indebtedness.  No Credit Party shall,
nor shall it permit any of its Subsidiaries to, amend or otherwise change the
terms of any Senior Indebtedness or Subordinated Indebtedness, or make any
payment consistent with an amendment thereof or change thereto, if the effect
of such amendment or change is to increase the interest rate on such Senior
Indebtedness or Subordinated Indebtedness, change (to earlier dates) any dates
upon which payments of principal or interest are due thereon, change any event
of default or condition to an event of default with respect thereto (other than
to eliminate any such event of default or increase any grace period related thereto),
change the redemption, prepayment or defeasance provisions thereof, change the
subordination provisions of such Subordinated Indebtedness (or of any guaranty
thereof), or if the effect of such amendment or change, together with all other
amendments or changes made, is to increase materially the obligations of the
obligor thereunder or to confer any additional rights on the holders of such
Senior Indebtedness or Subordinated Indebtedness (or a trustee or other
representative on their behalf) which would be adverse to any Credit Party or
Lenders.

Section 6.10           Fiscal
Year.  No Credit Party shall, nor
shall it permit any of its Subsidiaries to change its Fiscal Year-end from the
Saturday nearest September 30 of each year.

SECTION 7

GUARANTY

Section 7.1             Guaranty
of the Obligations.  Subject to the
provisions of Section 7.2, Guarantors jointly and severally hereby irrevocably
and unconditionally guaranty to Administrative Agent for the ratable benefit of
the Beneficiaries the due and punctual payment in full of all Obligations when
the same shall become due, whether at stated maturity, by required prepayment,
declaration, acceleration, demand or otherwise (including amounts that would
become due but for the operation of the automatic stay under Section 362(a) of
the Bankruptcy Code, 11 U.S.C. § 362(a)) (collectively, the “Guaranteed Obligations”).

Section 7.2             Contribution
by Guarantors.  All Guarantors desire
to allocate among themselves (collectively, the “Contributing
Guarantors”), in a fair and equitable manner, their obligations
arising under this Guaranty. 
Accordingly, in the event any payment or distribution is made on any
date by a Guarantor (a “Funding Guarantor”)
under this Guaranty that exceeds its Fair Share as of such date, to the extent
permitted by applicable law, such Funding Guarantor shall be entitled to a
contribution from each of the other Contributing Guarantors in the amount

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of such other
Contributing Guarantor’s Fair Share Shortfall as of such date, with the result
that all such contributions will cause each Contributing Guarantor’s Aggregate
Payments to equal its Fair Share as of such date.  “Fair Share”
means, with respect to a Contributing Guarantor as of any date of
determination, an amount equal to (a) the ratio of (i) the Fair Share Contribution
Amount with respect to such Contributing Guarantor to (ii) the aggregate of the
Fair Share Contribution Amounts with respect to all Contributing Guarantors
multiplied by (b) the aggregate amount paid or distributed on or before such
date by all Funding Guarantors under this Guaranty in respect of the
obligations Guaranteed.  “Fair Share Shortfall” means, with
respect to a Contributing Guarantor as of any date of determination, the
excess, if any, of the Fair Share of such Contributing Guarantor over the
Aggregate Payments of such Contributing Guarantor.  “Fair Share Contribution
Amount” means, with respect to a Contributing Guarantor as of
any date of determination, the maximum aggregate amount of the obligations of
such Contributing Guarantor under this Guaranty that would not render its
obligations hereunder or thereunder subject to avoidance as a fraudulent
transfer or conveyance under Section 548 of Title 11 of the United States Code
or any comparable applicable provisions of state law; provided,
solely for purposes of calculating the “Fair Share Contribution
Amount” with respect to any Contributing Guarantor for purposes
of this Section 7.2, any assets or liabilities of such Contributing Guarantor
arising by virtue of any rights to subrogation, reimbursement or
indemnification or any rights to or obligations of contribution hereunder shall
not be considered as assets or liabilities of such Contributing Guarantor.  “Aggregate Payments”
means, with respect to a Contributing Guarantor as of any date of
determination, an amount equal to (1) the aggregate amount of all payments and
distributions made on or before such date by such Contributing Guarantor in
respect of this Guaranty (including, without limitation, in respect of this
Section 7.2), minus (2) the aggregate amount of all payments received on or
before such date by such Contributing Guarantor from the other Contributing
Guarantors as contributions under this Section 7.2.  The amounts payable as contributions
hereunder shall be determined as of the date on which the related payment or
distribution is made by the applicable Funding Guarantor.  The allocation among Contributing Guarantors
of their obligations as set forth in this Section 7.2 shall not be construed in
any way to limit the liability of any Contributing Guarantor hereunder.  Each Guarantor is a third party beneficiary
to the contribution agreement set forth in this Section 7.2.

Section 7.3             Payment
by Guarantors.  Subject to Section
7.2, Guarantors hereby jointly and severally agree, in furtherance of the
foregoing and not in limitation of any other right which any Beneficiary may
have at law or in equity against any Guarantor by virtue hereof, that upon the
failure of the Company to pay any of the Guaranteed Obligations when and as the
same shall become due, whether at stated maturity, by required prepayment,
declaration, acceleration, demand or otherwise (including amounts that would
become due but for the operation of the automatic stay under Section 362(a) of
the Bankruptcy Code, 11 U.S.C. § 362(a)), Guarantors will upon demand pay, or
cause to be paid, in Cash, to Administrative Agent for the ratable benefit of
Beneficiaries, an amount equal to the sum of the unpaid principal amount of all
Guaranteed Obligations then due as aforesaid, accrued and unpaid interest on
such Guaranteed Obligations (including interest which, but for the Company’s
becoming the subject of a case under the Bankruptcy Code, would have accrued on
such Guaranteed Obligations, whether or not a claim is allowed against the
Company for such interest in the related bankruptcy case) and all other
Guaranteed Obligations then owed to Beneficiaries as aforesaid

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Section 7.4             Liability
of Guarantors Absolute.  Each
Guarantor agrees that its obligations hereunder are irrevocable, absolute,
independent and unconditional and shall not be affected by any circumstance
which constitutes a legal or equitable discharge of a guarantor or surety other
than payment in full of the Guaranteed Obligations.  In furtherance of the foregoing and without
limiting the generality thereof, each Guarantor agrees as follows:

(a)           this Guaranty is a guaranty of payment when due and not of
collectability.  This Guaranty is a
primary obligation of each Guarantor and not merely a contract of surety;

(b)           Administrative Agent may enforce this Guaranty upon the
occurrence of an Event of Default notwithstanding the existence of any dispute
between the Company and any Beneficiary with respect to the existence of such
Event of Default;

(c)           the obligations of each Guarantor hereunder are
independent of the obligations of the Company and the obligations of any other
guarantor (including any other Guarantor) of the obligations of the Company,
and a separate action or actions may be brought and prosecuted against such
Guarantor whether or not any action is brought against the Company or any of
such other guarantors and whether or not the Company or such other guarantors
are joined in any such action or actions;

(d)           payment by any Guarantor of a portion, but not all, of the
Guaranteed Obligations shall in no way limit, affect, modify or abridge any
Guarantor’s liability for any portion of the Guaranteed Obligations which has
not been paid.  Without limiting the
generality of the foregoing, if Administrative Agent is awarded a judgment in
any suit brought to enforce any Guarantor’s covenant to pay a portion of the
Guaranteed Obligations, such judgment shall not be deemed to release such
Guarantor from its covenant to pay the portion of the Guaranteed Obligations
that is not the subject of such suit, and such judgment shall not, except to
the extent satisfied by such Guarantor, limit, affect, modify or abridge any
other Guarantor’s liability hereunder in respect of the Guaranteed Obligations;

(e)           any Beneficiary, upon such terms as it deems appropriate,
without notice or demand and without affecting the validity or enforceability
hereof or giving rise to any reduction, limitation, impairment, discharge or
termination of any Guarantor’s liability hereunder, from time to time may (i)
renew, extend, accelerate, increase the rate of interest on, or otherwise
change the time, place, manner or terms of payment of the Guaranteed
Obligations; (ii) settle, compromise, release or discharge, or accept or refuse
any offer of performance with respect to, or substitutions for, the Guaranteed
Obligations or any agreement relating thereto and/or subordinate the payment of
the same to the payment of any other obligations; (iii) request and accept
other guaranties of the Guaranteed Obligations and take and hold security for
the payment hereof or the Guaranteed Obligations; (iv) release, surrender,
exchange, substitute, compromise, settle, rescind, waive, alter, subordinate or
modify, with or without consideration, any security for payment of the
Guaranteed Obligations, any other guaranties of the Guaranteed Obligations, or
any other obligation of any Person (including any other Guarantor) with respect
to the Guaranteed Obligations; (v) enforce and apply any security now or
hereafter held by or for the benefit of such Beneficiary in respect hereof or
the Guaranteed Obligations and direct the order or manner of sale thereof, or
exercise any other right or remedy that such Beneficiary may have against any
such security, in each case as such Beneficiary in its discretion may determine

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consistent herewith, including foreclosure on
any such security pursuant to one or more judicial or nonjudicial sales,
whether or not every aspect of any such sale is commercially reasonable, and
even though such action operates to impair or extinguish any right of
reimbursement or subrogation or other right or remedy of any Guarantor against
the Company or any security for the Guaranteed Obligations; and (vi) exercise
any other rights available to it under the Credit Documents; and

(f)            this Guaranty and the obligations of Guarantors hereunder
shall be valid and enforceable and shall not be subject to any reduction,
limitation, impairment, discharge or termination for any reason (other than
payment in full of the Guaranteed Obligations), including the occurrence of any
of the following, whether or not any Guarantor shall have had notice or
knowledge of any of them: (i) any failure or omission to assert or enforce or
agreement or election not to assert or enforce, or the stay or enjoining, by
order of court, by operation of law or otherwise, of the exercise or
enforcement of, any claim or demand or any right, power or remedy (whether
arising under the Credit Documents, at law, in equity or otherwise) with
respect to the Guaranteed Obligations or any agreement relating thereto, or
with respect to any other guaranty of or security for the payment of the
Guaranteed Obligations; (ii) any rescission, waiver, amendment or modification
of, or any consent to departure from, any of the terms or provisions (including
provisions relating to events of default) hereof, any of the other Credit
Documents or any agreement or instrument executed pursuant thereto, or of any
other guaranty or security for the Guaranteed Obligations, in each case whether
or not in accordance with the terms hereof or such Credit Document or any
agreement relating to such other guaranty or security; (iii) the Guaranteed
Obligations, or any agreement relating thereto, at any time being found to be
illegal, invalid or unenforceable in any respect; (iv) the application of
payments received from any source (other than payments received pursuant to the
other Credit Documents or from the proceeds of any security for the Guaranteed
Obligations, except to the extent such security also serves as collateral for
indebtedness other than the Guaranteed Obligations) to the payment of
indebtedness other than the Guaranteed Obligations, even though any Beneficiary
might have elected to apply such payment to any part or all of the Guaranteed
Obligations; (v) any Beneficiary’s consent to the change, reorganization or
termination of the corporate structure or existence of the Company or any of
its Subsidiaries and to any corresponding restructuring of the Guaranteed
Obligations; (vi) any failure to perfect or continue perfection of a security
interest in any collateral which secures any of the Guaranteed Obligations;
(vii) any defenses, set-offs or counterclaims which the Company may allege or
assert against any Beneficiary in respect of the Guaranteed Obligations,
including failure of consideration, breach of warranty, payment, statute of
frauds, statute of limitations, accord and satisfaction and usury; and (viii)
any other act or thing or omission, or delay to do any other act or thing,
which may or might in any manner or to any extent vary the risk of any
Guarantor as an obligor in respect of the Guaranteed Obligations.

Section 7.5             Waivers
by Guarantors.  Each Guarantor hereby
waives, to the fullest extent permitted by law, for the benefit of
Beneficiaries: (a) any right to require any Beneficiary, as a condition of
payment or performance by such Guarantor, to (i) proceed against the Company,
any other guarantor (including any other Guarantor) of the Guaranteed
Obligations or any other Person, (ii) proceed against or exhaust any security
held from the Company, any such other guarantor or any other Person, (iii)
proceed against or have resort to any balance of any Deposit Account or credit
on the books of any Beneficiary in favor of the Company or any other Person, or
(iv) pursue any other remedy in the power of any Beneficiary whatsoever; (b)
any

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defense arising by reason
of the incapacity, lack of authority or any disability or other defense of the
Company or any other Guarantor including any defense based on or arising out of
the lack of validity or the unenforceability of the Guaranteed Obligations or
any agreement or instrument relating thereto or by reason of the cessation of
the liability of the Company or any other Guarantor from any cause other than
payment in full of the Guaranteed Obligations; (c) any defense based upon any
statute or rule of law which provides that the obligation of a surety must be
neither larger in amount nor in other respects more burdensome than that of the
principal; (d) any defense based upon any Beneficiary’s errors or omissions in
the administration of the Guaranteed Obligations, except behavior which amounts
to gross negligence or bad faith; (e) (i) any principles or provisions of law,
statutory or otherwise, which are or might be in conflict with the terms hereof
and any legal or equitable discharge of such Guarantor’s obligations hereunder,
(ii) the benefit of any statute of limitations affecting such Guarantor’s
liability hereunder or the enforcement hereof, (iii) any rights to set-offs,
recoupments and counterclaims, and (iv) promptness, diligence and any
requirement that any Beneficiary protect, secure, perfect or insure any
security interest or lien or any property subject thereto; (f) notices,
demands, presentments, protests, notices of protest, notices of dishonor and
notices of any action or inaction, including acceptance hereof, notices of
default hereunder, notices of any renewal, extension or modification of the
Guaranteed Obligations or any agreement related thereto, notices of any
extension of credit to the Company and notices of any of the matters referred
to in Section 7.4 and any right to consent to any thereof; and (g) any defenses
or benefits that may be derived from or afforded by law which limit the
liability of or exonerate guarantors or sureties, or which may conflict with
the terms hereof.

Section 7.6             Guarantors’
Rights of Subrogation, Contribution, Etc. 
Until the Guaranteed Obligations shall have been indefeasibly paid in
full, each Guarantor hereby waives, to the extent permitted by the Senior
Subordinated Notes Documents,  any claim,
right or remedy, direct or indirect, that such Guarantor now has or may
hereafter have against the Company or any other Guarantor or any of its assets
in connection with this Guaranty or the performance by such Guarantor of its
obligations hereunder, in each case whether such claim, right or remedy arises
in equity, under contract, by statute, under common law or otherwise and
including without limitation (a) any right of subrogation, reimbursement or
indemnification that such Guarantor now has or may hereafter have against the
Company with respect to the Guaranteed Obligations, (b) any right to enforce,
or to participate in, any claim, right or remedy that any Beneficiary now has
or may hereafter have against the Company, and (c) any benefit of, and any
right to participate in, any collateral or security now or hereafter held by
any Beneficiary.  In addition, until the
Guaranteed Obligations shall have been indefeasibly paid in full, each
Guarantor shall withhold exercise of any right of contribution such Guarantor
may have against any other guarantor (including any other Guarantor) of the
Guaranteed Obligations, including, without limitation, any such right of
contribution as contemplated by Section 7.2. 
Each Guarantor further agrees that, to the extent the waiver or
agreement to withhold the exercise of its rights of subrogation, reimbursement,
indemnification and contribution as set forth herein is found by a court of
competent jurisdiction to be void or voidable for any reason, any rights of
subrogation, reimbursement or indemnification such Guarantor may have against
the Company or against any collateral or security, and any rights of
contribution such Guarantor may have against any such other guarantor, to the
extent permitted under the Senior Subordinated Notes Documents, shall be junior
and subordinate to any rights any Beneficiary may have against the Company, to
all right, title and interest any Beneficiary may have in any such

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collateral or security,
and to any right any Beneficiary may have against such other guarantor.  If any amount shall be paid to any Guarantor
on account of any such subrogation, reimbursement, indemnification or
contribution rights at any time when all Guaranteed Obligations shall not have
been finally and indefeasibly paid in full, such amount shall be held in trust
for Administrative Agent on behalf of Beneficiaries and shall forthwith be paid
over to Administrative Agent for the benefit of Beneficiaries to be credited
and applied against the Guaranteed Obligations, whether matured or unmatured,
in accordance with the terms hereof.

Section 7.7             Continuing
Guaranty.  This Guaranty is a
continuing guaranty and shall remain in effect until all of the Guaranteed
Obligations shall have been paid in full. 
Each Guarantor hereby irrevocably waives any right to revoke this Guaranty
as to future transactions giving rise to any Guaranteed Obligations.

Section 7.8             Authority
of Guarantors or the Company.  It is
not necessary for any Beneficiary to inquire into the capacity or powers of any
Guarantor or the Company or the officers, directors or any agents acting or
purporting to act on behalf of any of them.

Section 7.9             
Financial Condition of the Company. 
Any Loan may be made to the Company or continued from time to time, in
each case without notice to or authorization from any Guarantor regardless of
the financial or other condition of the Company at the time of any such grant
or continuation.  No Beneficiary shall
have any obligation to disclose or discuss with any Guarantor its assessment,
or any Guarantor’s assessment, of the financial condition of the Company.  Each Guarantor has adequate means to obtain
information from the Company on a continuing basis concerning the financial
condition of the Company and its ability to perform its obligations under the
Credit Documents, and each Guarantor assumes the responsibility for being and
keeping informed of the financial condition of the Company and of all
circumstances bearing upon the risk of nonpayment of the Guaranteed
Obligations.  Each Guarantor hereby
waives and relinquishes any duty on the part of any Beneficiary to disclose any
matter, fact or thing relating to the business, operations or conditions of the
Company now known or hereafter known by any Beneficiary.

Section 7.10           Bankruptcy,
Etc.  (a)  So long as any Guaranteed Obligations remain
outstanding, no Guarantor shall, without the prior written consent of
Administrative Agent acting pursuant to the instructions of Requisite Lenders,
commence or join with any other Person in commencing any bankruptcy,
reorganization or insolvency case or proceeding of or against the Company or
any other Guarantor.  The obligations of
Guarantors hereunder shall not be reduced, limited, impaired, discharged,
deferred, suspended or terminated by any case or proceeding, voluntary or
involuntary, involving the bankruptcy, insolvency, receivership,
reorganization, liquidation or arrangement of the Company or any other
Guarantor or by any defense which the Company or any other Guarantor may have
by reason of the order, decree or decision of any court or administrative body
resulting from any such proceeding.

(b)           Each Guarantor acknowledges and agrees that any interest
on any portion of the Guaranteed Obligations which accrues after the
commencement of any case or proceeding referred to in clause (a) above (or, if
interest on any portion of the Guaranteed Obligations ceases to accrue by
operation of law by reason of the commencement of such case or proceeding, such
interest as would have accrued on such portion of the Guaranteed Obligations if
such case or 

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proceeding had not been commenced) shall be
included in the Guaranteed Obligations because it is the intention of
Guarantors and Beneficiaries that the Guaranteed Obligations which are
guaranteed by Guarantors pursuant hereto should be determined without regard to
any rule of law or order which may relieve the Company of any portion of such
Guaranteed Obligations.  Guarantors will
permit any trustee in bankruptcy, receiver, debtor in possession, assignee for
the benefit of creditors or similar person to pay Administrative Agent, or
allow the claim of Administrative Agent in respect of, any such interest
accruing after the date on which such case or proceeding is commenced.

(c)           In the event that all or any portion of the Guaranteed
Obligations are paid by the Company, the obligations of Guarantors hereunder
shall continue and remain in full force and effect or be reinstated, as the
case may be, in the event that all or any part of such payment(s) are rescinded
or recovered directly or indirectly from any Beneficiary as a preference,
fraudulent transfer or otherwise, and any such payments which are so rescinded
or recovered shall constitute Guaranteed Obligations for all purposes
hereunder.

Section 7.11           Discharge
of Guaranty Upon Sale of Guarantor. 
If all of the Capital Stock of any Guarantor or any of its successors in
interest hereunder shall be sold or otherwise disposed of (including by merger
or consolidation) in accordance with the terms and conditions hereof, the
Guaranty of such Guarantor or such successor in interest, as the case may be,
hereunder shall automatically be discharged and released without any further
action by any Beneficiary or any other Person effective as of the time of such
sale or disposition.

SECTION 8

EVENTS OF DEFAULT

Section 8.1             Events
of Default.  If any one or more of
the following conditions or events shall occur:

(a)           Failure to Make Payments When Due.  Failure by the Company to pay (i) when due
the principal of, or premium on, any Loan, whether at stated maturity, by acceleration,
by notice of voluntary prepayment or otherwise; or (ii) any interest on any
Loan or any fee or any other amount due hereunder within three (3) Business
Days after the date due; or

(b)           Default in Other Agreements.  (i)  Failure of any Credit
Party or any of their respective Subsidiaries to pay when due any principal of
or interest on or any other amount payable in respect of one or more items of
Indebtedness (other than Indebtedness referred to in Section 8.1(a)) having an
aggregate principal amount of $50.0 million or more, in each case beyond the
grace period, if any, provided therefor; or (ii) breach or default by any
Credit Party with respect to any other material term (other than any such
breaches or defaults which have been waived, which waivers continue in full
force and effect) of (1) one or more items of Indebtedness in the individual or
aggregate principal amounts referred to in clause (i) above or (2) any loan
agreement, mortgage, indenture or other agreement relating to such item(s) of Indebtedness,
in each case beyond the grace period, if any, provided therefor, if the effect
of such breach or default is to cause, or to permit the holder or holders of
that Indebtedness (or a trustee on behalf of such holder or holders), to cause,
that Indebtedness to become or be declared due

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and payable (or redeemable) prior to its
stated maturity or the stated maturity of any underlying obligation, as the
case may be; or

(c)           Breach of Certain Covenants.  Failure of any Credit Party to perform or
comply with any term or condition contained in Section 5.2 or Section 6; or

(d)           Breach of Representations, Etc.  Any representation, warranty, certification
or other statement made or deemed made by any Credit Party in any Credit
Document or in any statement or certificate at any time given by any Credit
Party or any of its Subsidiaries in writing pursuant hereto or thereto or in
connection herewith or therewith shall be false in any material respect as of
the date made or deemed made; or

(e)           Other Defaults Under Credit Documents.  Any Credit Party shall default in the
performance of or compliance with any term contained herein or any of the other
Credit Documents, other than any such term referred to in any other Section of
this Section 8.1, and such default shall not have been remedied or waived
within thirty (30) days after the earlier of (i) an Authorized Officer of such
Credit Party becoming aware of such default or (ii) receipt by the Company of
notice from Administrative Agent or any Lender of such default; or

(f)            Involuntary Bankruptcy; Appointment of Receiver, Etc.  (i) A court of competent jurisdiction shall
enter a decree or order for relief in respect of the Company or any of its
Subsidiaries (other than an Insignificant Subsidiary) in an involuntary case
under the Bankruptcy Code or under any other applicable bankruptcy, insolvency
or similar law now or hereafter in effect, which decree or order is not stayed;
or any other similar relief shall be granted under any applicable federal or
state law; or (ii) an involuntary case shall be commenced against the Company
or any of its Subsidiaries (other than an Insignificant Subsidiary) under the
Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar
law now or hereafter in effect; or a decree or order of a court having
jurisdiction in the premises for the appointment of a receiver, liquidator,
sequestrator, trustee, custodian or other officer having similar powers over
the Company or any of its Subsidiaries (other than an Insignificant Subsidiary),
or over all or a substantial part of its property, shall have been entered; or
there shall have occurred the involuntary appointment of an interim receiver,
trustee or other custodian of the Company or any of its Subsidiaries (other
than an Insignificant Subsidiary) for all or a substantial part of its
property; or a warrant of attachment, execution or similar process shall have
been issued against any substantial part of the property of the Company or any
of its Subsidiaries (other than an Insignificant Subsidiary), and any such
event described in this clause (ii) shall continue for sixty (60) days without
having been dismissed, bonded or discharged; or

(g)           Voluntary Bankruptcy; Appointment of Receiver, Etc.  (i) The Company or any of its Subsidiaries
(other than an Insignificant Subsidiary) shall have an order for relief entered
with respect to it or shall commence a voluntary case under the Bankruptcy Code
or under any other applicable bankruptcy, insolvency or similar law now or
hereafter in effect, or shall consent to the entry of an order for relief in an
involuntary case, or to the conversion of an involuntary case to a voluntary
case, under any such law, or shall consent to the appointment of or taking
possession by a receiver, trustee or other custodian for all or a substantial
part of its property; or the Company or any of its Subsidiaries (other than an
Insignificant Subsidiary) shall make any assignment for the benefit of
creditors; or (ii) the Company or any of its Subsidiaries 

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(other than an Insignificant Subsidiary)
shall be unable, or shall fail generally, or shall admit in writing its
inability, to pay its debts as such debts become due; or the board of directors
(or similar governing body) of the Company or any of its Subsidiaries (other
than an Insignificant Subsidiary) (or any committee thereof) shall adopt any
resolution or otherwise authorize any action to approve any of the actions
referred to herein or in Section 8.1(f); or

(h)           Judgments and Attachments.  Any money judgment, writ or warrant of
attachment or similar process involving an amount in excess of $50.0 million
(to the extent not adequately covered by insurance as to which a solvent and
unaffiliated insurance company has acknowledged coverage) shall be entered or
filed against the Company or any of its Subsidiaries (other than an
Insignificant Subsidiary) or any of their respective assets and shall remain
undischarged, unvacated, unbonded or unstayed for a period of sixty (60) days
(or in any event later than five days prior to the date of any proposed sale
thereunder); or

(i)            Dissolution. 
Any order, judgment or decree shall be entered against any Credit Party
decreeing the dissolution or split up of such Credit Party and such order shall
remain undischarged or unstayed for a period in excess of thirty (30) days; or

(j)            Employee Benefit Plans.  (i) There shall occur one or more ERISA
Events which individually or in the aggregate results in or might reasonably be
expected to result in liability of the Company, any of its Subsidiaries or any
of their respective ERISA Affiliates in excess of $40.0 million during the term
hereof; or (ii) there exists any fact or circumstance that reasonably could be
expected to result in the imposition of a Lien or security interest under Section
412(n) of the Internal Revenue Code or under ERISA; or

(k)           Change of Control. 
A Change of Control shall occur; or

(l)            Guaranties and other Credit Documents.  At any time after the execution and delivery
thereof, (i) the Guaranty for any reason, other than the satisfaction in full
of all Obligations, shall cease to be in full force and effect (other than in
accordance with its terms) or shall be declared to be null and void or any
Guarantor shall repudiate its obligations thereunder, (ii) this Agreement ceases
to be in full force and effect (other than satisfaction in full of the
Obligations in accordance with the terms hereof) or shall be declared null and
void, or (iii) any Credit Party shall contest the validity or enforceability of
any Credit Document in writing or deny in writing that it has any further
liability, including with respect to future advances by Lenders, under any
Credit Document to which it is a party;

THEN, (1) upon the occurrence of
any Event of Default described in Section 8.1(f) or 8.1(g), automatically, and
(2) upon the occurrence of any other Event of Default, at the request of (or
with the consent of) Requisite Lenders, upon notice to the Company by
Administrative Agent, each of the following shall immediately become due and
payable, in each case without presentment, demand, protest or other
requirements of any kind, all of which are hereby expressly waived by each
Credit Party:  (I) the unpaid principal
amount of and accrued interest on the Loans and (II) all other Obligations.

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SECTION 9

AGENTS

Section 9.1             Appointment
of Agents.  Each of Administrative
Agent, the Syndication Agent, the Lead Arranger and the Documentation Agent are
hereby appointed hereunder and under the other Credit Documents and each Lender
hereby authorizes each Agent to act as its agent in accordance with the terms
hereof and the other Credit Documents. 
Each Agent hereby agrees to act upon the express conditions contained
herein and the other Credit Documents, as applicable.  Except with respect to Section 9.8, the
provisions of this Section 9 are solely for the benefit of Agents and the
Lenders and no Credit Party shall have any rights as a third party beneficiary
of any of the provisions thereof.  In
performing its functions and duties hereunder, each Agent shall act solely as
an agent of the Lenders and does not assume and shall not be deemed to have
assumed any obligation towards or relationship of agency or trust with or for
the Company or any of its Subsidiaries. 
As of the Closing Date, none of the Syndication Agent, the Lead
Arrangers nor the Documentation Agents shall have any obligations but shall be
entitled to all benefits of this Section 9.

Section 9.2             Powers
and Duties.  Agents Generally.  Each Lender irrevocably authorizes each Agent
to take such action on such Lender’s behalf and to exercise such powers, rights
and remedies hereunder and under the other Credit Documents as are specifically
delegated or granted to such Agent by the terms hereof and thereof, together
with such powers, rights and remedies as are reasonably incidental
thereto.  Each Agent shall have only
those duties and responsibilities that are expressly specified herein and the
other Credit Documents.  Each Agent may
exercise such powers, rights and remedies and perform such duties by or through
its agents or employees.  No Agent shall
have, by reason hereof or any of the other Credit Documents, a fiduciary
relationship in respect of any Lender; and nothing herein or any of the other
Credit Documents, expressed or implied, is intended to or shall be so construed
as to impose upon any Agent any obligations in respect hereof or any of the
other Credit Documents except as expressly set forth herein or therein.

Section 9.3             Exculpatory
Provisions.  No Agent shall have any
duties or obligations except those expressly set forth herein and in the other
Credit Documents.  Without limiting the
generality of the foregoing, no Agent:

(a)           shall be subject to any fiduciary or other implied duties,
regardless of whether a Default has occurred and is continuing;

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

(c)           shall, except as expressly set forth herein and in the
other Credit Documents, have any duty to disclose, and shall not be liable for
the failure to disclose, any

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information relating to the Company or any of
its Affiliates that is communicated to or obtained by the Person serving as
such Agent or any of its Affiliates in any capacity.

No Agent nor any of its officers, partners, directors,
employees or agents shall be liable to the Lenders for any action taken or
omitted by any Agent under or in connection with any of the Credit Documents
except to the extent caused by such Agent’s gross negligence or willful
misconduct.  Each Agent shall be entitled
to refrain from any act or the taking of any action (including the failure to
take an action) in connection herewith or any of the other Credit Documents or
from the exercise of any power, discretion or authority vested in it hereunder
or thereunder unless and until such Agent shall have received instructions in
respect thereof from Requisite Lenders (or such other Lenders as may be
required to give such instructions under Section 10.5) and, upon receipt of
such instructions from Requisite Lenders (or such other Lenders, as the case
may be), such Agent shall be entitled to act or (where so instructed) refrain
from acting, or to exercise such power, discretion or authority, in accordance
with such instructions.  Without
prejudice to the generality of the foregoing, (i) each Agent shall be entitled
to rely, and shall be fully protected in relying, upon any communication,
instrument or document believed by it to be genuine and correct and to have
been signed or sent by the proper Person or Persons, and shall be entitled to
rely and shall be protected in relying on opinions and judgments of attorneys
(who may be attorneys for the Company and its Subsidiaries), accountants,
experts and other professional advisors selected by it; and (ii) no Lender
shall have any right of action whatsoever against any Agent as a result of such
Agent acting or (where so instructed) refraining from acting hereunder or any
of the other Credit Documents in accordance with the instructions of Requisite
Lenders (or such other Lenders as may be required to give such instructions
under Section 10.5).

Section 9.4             Reliance
by Administrative Agent.  The
Administrative Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing (including any electronic
message, Internet or intranet website posting or other distribution) reasonably
believed by it to be genuine and to have been signed, sent or otherwise
authenticated by the proper Person.  The
Administrative Agent also may rely upon any statement made to it orally or by
telephone and reasonably believed by it to have been made by the proper Person,
and shall not incur any liability for relying thereon.  In determining compliance with any condition
hereunder to the making of a Loan that by its terms must be fulfilled to the
satisfaction of a Lender, the Administrative Agent may presume that such
condition is satisfactory to such Lender unless the Administrative Agent shall
have received notice to the contrary from such Lender prior to the making of
such Loan.  The Administrative Agent may
consult with legal counsel (who may be counsel for the Company), independent
accountants and other experts selected by it, and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such
counsel, accountants or experts.

Section 9.5             Delegation
of Duties.  The Administrative Agent
may perform any and all of its duties and exercise its rights and powers
hereunder or under any other Credit Document by or through any one or more
sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such
sub-agent may perform any and all of its duties and exercise its rights and
powers by or through their respective Related Parties.  The exculpatory provisions of this Article
shall apply to any such sub-agent and to the Related Parties of the

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Administrative Agent and
any such sub-agent, and shall apply to their respective activities in
connection with the syndication of the credit facilities provided for herein as
well as activities as Administrative Agent.

Section 9.6             Agents
Entitled to Act as Lender.  The
agency hereby created shall in no way impair or affect any of the rights and
powers of, or impose any duties or obligations upon, any Agent in its
individual capacity as a Lender hereunder. 
With respect to its participation in the Loans, each Agent shall have
the same rights and powers hereunder as any other Lender and may exercise the
same as if it were not performing the duties and functions delegated to it
hereunder, and the term “Lender” shall, unless the context clearly otherwise
indicates, include each Agent in its individual capacity.  Any Agent and its Affiliates may accept
deposits from, lend money to, own securities of, and generally engage in any
kind of banking, trust, financial advisory or other business with the Company
or any of its Affiliates as if it were not performing the duties specified
herein, and may accept fees and other consideration from the Company for
services in connection herewith and otherwise without having to account for the
same to Lenders.

Section 9.7             Lenders’
Representations, Warranties and Acknowledgment.  (a) 
Each Lender represents and warrants that it has made its own independent
investigation of the financial condition and affairs of the Company and its
Subsidiaries in connection with Loans hereunder and that it has made and shall
continue to make its own appraisal of the creditworthiness of the Company and
its Subsidiaries.  No Agent shall have
any duty or responsibility, either initially or on a continuing basis, to make
any such investigation or any such appraisal on behalf of the Lenders or to provide
any Lender with any credit or other information with respect thereto, whether
coming into its possession before the making of the Loans or at any time or
times thereafter, and no Agent shall have any responsibility with respect to
the accuracy of or the completeness of any information provided to the Lenders.

(b)           Each Lender, by delivering its signature page to this
Agreement, shall be deemed to have acknowledged receipt of, and consented to
and approved, each Credit Document and each other document required to be
approved by any Agent, Requisite Lenders or the Lenders, as applicable on the
Closing Date.

Section 9.8             Right
to Indemnity.  (a)  Each Lender, in proportion to its Pro Rata
Share, severally agrees to indemnify each Agent, to the extent that such Agent
shall not have been reimbursed by any Credit Party, for and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses (including counsel fees and disbursements) or
disbursements of any kind or nature whatsoever which may be imposed on,
incurred by or asserted against such Agent in exercising its powers, rights and
remedies or performing its duties hereunder or under the other Credit Documents
or otherwise in its capacity as such Agent in any way relating to or arising
out hereof or the other Credit Documents; provided, no
Lender shall be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from such Agent’s gross negligence or willful
misconduct.  If any indemnity furnished
to any Agent for any purpose shall, in the opinion of such Agent, be
insufficient or become impaired, such Agent may call for additional indemnity
and cease, or not commence, to do the acts indemnified against until such
additional indemnity is furnished; provided, in no
event shall this sentence

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require any Lender to
indemnify any Agent against any liability, obligation, loss, damage, penalty,
action, judgment, suit, cost, expense or disbursement in excess of such
Lender’s Pro Rata Share thereof; and provided  further, this sentence shall not be deemed to require any
Lender to indemnify any Agent against any liability, obligation, loss, damage,
penalty, action, judgment, suit, cost, expense or disbursement described in the
proviso in the immediately preceding sentence.

(b)           For purposes of this Section 9.8, the Lenders’ respective
ratable shares of any amount shall be determined, at any time, according to the
aggregate principal amount of the Loans outstanding at such time and owing to
the respective Lenders.  The failure of
any Lender to reimburse any Agent promptly upon demand for its ratable share of
any amount required to be paid by the Lenders to such Agent as provided herein
shall not relieve any other Lender of its obligation hereunder to reimburse
such Agent for its ratable share of such amount, but no Lender shall be
responsible for the failure of any other Lender to reimburse such Agent for
such other Lender’s ratable share of such amount.  Without prejudice to the survival of any
other agreement of any Lender hereunder, the agreement and obligations of each
Lender contained in this Section 9.8 shall survive the payment in full of
principal, interest and all other amounts payable hereunder and under the other
Credit Documents.

Section 9.9             Successor
Administrative Agent.  The
Administrative Agent may at any time give notice of its resignation to the
Lenders and the Company.  Upon receipt of
any such notice of resignation, the Requisite Lenders shall have the right, in
consultation with the Company, to appoint a successor, which shall be a bank
with an office in the United States, or an Affiliate of any such bank with an
office in the United States.  If no such
successor shall have been so appointed by the Requisite Lenders and shall have
accepted such appointment within 30 days after the retiring Administrative
Agent gives notice of its resignation, then the retiring Administrative Agent
may on behalf of the Lenders, appoint a successor Administrative Agent meeting
the qualifications set forth above; provided that
if the Administrative Agent shall notify the Company and the Lenders that no
qualifying Person has accepted such appointment, then such resignation shall
nonetheless become effective in accordance with such notice and (a) the
retiring Administrative Agent shall be discharged from its duties and
obligations hereunder and under the other Credit Documents (except that in the
case of any collateral security held by the Administrative Agent on behalf of
the Lenders under any of the Credit Documents, the retiring Administrative
Agent shall continue to hold such collateral security until such time as a
successor Administrative Agent is appointed) and (b) all payments,
communications and determinations provided to be made by, to or through the
Administrative Agent shall instead be made by or to each Lender directly, until
such time as the Requisite Lenders appoint a successor Administrative Agent as
provided for above in this Section.  Upon
the acceptance of a successor’s appointment as Administrative Agent hereunder,
such successor shall succeed to and become vested with all of the rights,
powers, privileges and duties of the retiring (or retired) Administrative
Agent, and the retiring Administrative Agent shall be discharged from all of
its duties and obligations hereunder or under the other Credit Documents (if
not already discharged therefrom as provided above in this Section).  The fees payable by the Company to a successor
Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Company and such successor.  After the retiring Administrative Agent’s
resignation hereunder and under the other Credit Documents, the provisions of
this Section 9 and Sections 10.2 and 10.3 shall continue in effect for the
benefit of such retiring Administrative

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Agent, its sub-agents and
their respective Related Parties in respect of any actions taken or omitted to
be taken by any of them while the retiring Administrative Agent was acting as
Administrative Agent.

Section 9.10           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 shall then be due and payable as herein
expressed or by declaration or otherwise and irrespective of whether the
Administrative Agent shall have made any demand on the Borrower) 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 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 its agents and counsel and all other amounts due the Lenders and the
Administrative Agent under Sections 2.8 and 7.4) 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, if 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 2.8 and 7.4.

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 9.11           Guaranty.  (a)  Agent
Under Guaranty.  Each Lender hereby
further authorizes Administrative Agent, on behalf of and for the benefit of
Lenders, to be the agent for and representative of Lenders with respect to the
Guaranty.  Subject to Section 10.5,
without further written consent or authorization from Lenders, Administrative
Agent may execute any documents or instruments necessary to release any
Guarantor from the Guaranty pursuant to Section 7.11 or with respect to which
Requisite Lenders (or such other Lenders as may be required to give such
consent under Section 10.5) have otherwise consented.

(b)           Right to Enforce Guaranty.  Anything contained in any of the Credit
Documents to the contrary notwithstanding, the Company, Administrative Agent
and each

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Lender hereby agree that (i) no Lender shall
have any right individually to enforce the Guaranty, it being understood and
agreed that all powers, rights and remedies hereunder may be exercised solely
by Administrative Agent, on behalf of Lenders in accordance with the terms
hereof.

SECTION
10

MISCELLANEOUS

Section 10.1           Notices.  (a) 
All notices and other communications provided for hereunder shall be
either (x) in writing (including telecopier communication) and mailed,
telecopied, or delivered or (y) as and to the extent set forth in Section
10.1(b) and in the proviso to this Section 10.1(a), if to the Company, at its
address at 2700 North First Street, San Jose, CA 95134, Attention:  Corporate Treasurer; Facsimile: (408)
964-3644; if to any Initial Lender, at its Domestic Lending Office specified
opposite its name on Appendix B hereto; if to any other Lender, at its Domestic
Lending Office specified in the Assignment and Acceptance pursuant to which it
became a Lender; if to the Agent, at its address at 315 Montgomery Street, San
Francisco, CA, 94014-1866, Attention: 
Sugeet Manchanda Madan; Facsimile: (415) 622-4057, or, as to the Company
or any Agent, at such other address as shall be designated by such party in a
written notice to the other parties and, as to each other party at such other
address as shall be designated by such party in a written notice to the Company
and the Administrative Agent, provided that
materials required to be delivered pursuant to Section 5.1(a), (b), (i) or
(j)(i) shall be delivered to the Administrative Agent as specified in Section
10.1(b) or as otherwise specified to the Company by the Administrative
Agent.  All such notices and
communications shall, when mailed or e-mailed, be effective when deposited in
the mails, telecopied, or confirmed by e-mail, respectively, except that
notices and communications to the Agent pursuant to Sections 2, 3 or 8 shall
not be effective until received by the Agent. 
Delivery by telecopier of an executed counterpart of any amendment or
waiver of any provision of this Agreement or the Notes or of any Exhibit hereto
to be executed and delivered hereunder shall be effective as delivery of a
manually executed counterpart thereof.

(b)           So long as Bank of America or any of its Affiliates is the
Administrative Agent, materials required to be delivered pursuant to Section
5.1(a), (b), (i) and (j)(i) shall be delivered to the Administrative Agent in
an electronic medium in a format acceptable to the Administrative Agent and the
Lenders by e-mail at liliana.claar@bankofamerica.com.  The Company agrees that (A) the
Administrative Agent may make such materials, as well as any other written
information, documents, instruments and other material relating to the Company,
any of its Subsidiaries or any other materials or matters relating to this
Agreement, the Notes or any of the transactions contemplated hereby
(collectively, the “Communications”)
available to the Lenders by posting such notices on Intralinks, “e-Disclosure”,
or a substantially similar electronic system (the “Platform”) and (B) certain of the Lenders may be
“public-side” Lenders (i.e., Lenders that do not wish to receive material
non-public information with respect to the Company or its securities) (each, a
“Public Lender”).  The Company hereby agrees that (w) all
Communications that are to be made available to Public Lenders shall be clearly
and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word
“PUBLIC” shall appear prominently on the first page thereof; (x) by marking
Communications “PUBLIC,” the Company shall be deemed to have authorized the
Administrative Agent, the Arrangers and the Lenders to treat such
Communications as either publicly available information or not material
information (although it may be sensitive and proprietary) with respect to the
Company

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or its securities for purposes of United
States Federal and state securities laws; (y) all Communications marked
“PUBLIC” are permitted to be made available through a portion of the Platform
designated “Public Investor”; and (z) the Administrative Agent and the
Arrangers shall be entitled to treat any Communications that are not marked
“PUBLIC” as being suitable for posting only on a portion of the Platform not
designated “Public Investor”.  The
Company acknowledges that (i) the distribution of material through an
electronic medium is not necessarily secure and that there are confidentiality
and other risks associated with such distribution, (ii) the Platform is
provided “as is” and “as available” and (iii) neither the Administrative Agent
nor any of its Affiliates warrants the accuracy, adequacy or completeness of
the Communications or the Platform and each expressly disclaims liability for
errors or omissions in the Communications or the Platform.  No warranty of any kind, express, implied or
statutory, including, without limitation, any warranty of merchantability,
fitness for a particular purpose, non-infringement of third party rights or
freedom from viruses or other code defects, is made by the Administrative Agent
or any of its Affiliates in connection with the Platform.

(c)           Each Lender agrees that notice to it (as provided in the
next sentence) (an “E-Communications
Notice”) specifying that any Communications have been posted to
the Platform shall constitute effective delivery of such information, documents
or other materials to such Lender for purposes of this Agreement; provided that if requested by any Lender the Administrative
Agent shall deliver a copy of the Communications to such Lender by email or
telecopier.  Each Lender agrees (i) to
notify the Administrative Agent in writing of such Lender’s e-mail address to
which an E-Communications Notice may be sent by electronic transmission
(including by electronic communication) on or before the date such Lender
becomes a party to this Agreement (and from time to time thereafter to ensure
that the Administrative Agent has on record an effective e-mail address for
such Lender) and (ii) that any E-Communications Notice may be sent to such e-mail
address.

Section 10.2           Expenses.  Whether or not the transactions contemplated
hereby shall be consummated, the Company agrees to pay promptly (a) all the
actual and reasonable costs and expenses of preparation of the commitment
package, the Credit Documents and any consents, amendments, waivers or other
modifications thereto; (b) all the costs of furnishing all opinions by counsel
for the Company and the other Credit Parties; (c) the reasonable fees, expenses
and disbursements of counsel to Agents (in each case including allocated costs
of internal counsel) in connection with the negotiation, preparation, execution
and administration of the Credit Documents and any consents, amendments,
waivers or other modifications thereto and any other documents or matters
requested by the Company; (d) all the actual costs and reasonable fees,
expenses and disbursements of any auditors, accountants, consultants or
appraisers; (e) all other actual and reasonable costs and expenses incurred by
each Agent in connection with the syndication of the Loans and Commitments and
the negotiation, preparation and execution of the Credit Documents and any
consents, amendments, waivers or other modifications thereto and the
transactions contemplated thereby; and (f) after the occurrence of a Default or
an Event of Default, all costs and expenses, including reasonable financial
consultant and attorneys’ fees (including allocated costs of internal counsel)
and costs of settlement, incurred by any Agent and Lenders in enforcing any
Obligations of or in collecting any payments due from any Credit Party
hereunder or under the other Credit Documents by reason of such Default or
Event of Default (including in connection with the enforcement of the Guaranty)
or in connection with any refinancing or restructuring of the credit
arrangements provided

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hereunder in the nature
of a “work-out” or pursuant to any insolvency or bankruptcy cases or
proceedings.

Section 10.3           Indemnity.  (a)  In
addition to the payment of expenses pursuant to Section 10.2, whether or not
the transactions contemplated hereby shall be consummated, each Credit Party
agrees to defend (subject to Indemnitees’ selection of counsel), indemnify, pay
and hold harmless, each Agent and Lender and the officers, partners, directors,
trustees, employees, advisors, agents and Affiliates of each Agent and each
Lender (each, an “Indemnitee”), from and
against any and all Indemnified Liabilities; provided,
no Credit Party shall have any obligation to any Indemnitee hereunder with
respect to any Indemnified Liabilities to the extent such Indemnified
Liabilities arise from the gross negligence or willful misconduct of that
Indemnitee.  To the extent that the
undertakings to defend, indemnify, pay and hold harmless set forth in this
Section 10.3 may be unenforceable in whole or in part because they are
violative of any law or public policy, the applicable Credit Party shall
contribute the maximum portion that it is permitted to pay and satisfy under
applicable law to the payment and satisfaction of all Indemnified Liabilities
incurred by Indemnitees or any of them. 
To the extent permitted by applicable law, no Credit Party shall assert,
and each hereby waives, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to direct or actual damages) arising out of, in connection with, or as a result
of, any Credit Document or any agreement or instrument or transaction
contemplated hereby.

(b)           To the extent permitted by applicable law, neither the
Company nor any of its Subsidiaries or Affiliates shall assert, and hereby
waives, any claim against any Lender or any of their Affiliates, directors,
employees, attorneys or agents, on any theory of liability, for special,
indirect, consequential or punitive damages (as opposed to direct or actual
damages) (whether or not the claim therefor is based on contract, tort or duty
imposed by any applicable legal requirement) arising out of, in connection
with, arising out of, as a result of, or in any way related to, this Agreement
or any Credit Document or any agreement or instrument contemplated hereby or
thereby, the transactions contemplated hereby or thereby, any Loan or the use
of the proceeds thereof or any act or omission or event occurring in connection
therewith, and the Company hereby waives, releases and agrees not to sue upon
any such claim or any such damages, whether or not accrued and whether or not
known or suspected to exist in its favor.

Section 10.4           Set-Off.  In addition to any rights now or hereafter
granted under applicable law and not by way of limitation of any such rights,
upon the occurrence and during the continuance of any Event of Default each
Lender and any of its Affiliates is hereby authorized by each Credit Party at
any time or from time to time subject to the consent of Administrative Agent
(such consent not to be unreasonably withheld or delayed), without notice to
any Credit Party or to any other Person (other than Administrative Agent), any
such notice being hereby expressly waived, to set off and to appropriate and to
apply any and all deposits (general or special, including Indebtedness
evidenced by certificates of deposit, whether matured or unmatured, but not
including trust accounts) and any other Indebtedness at any time held or owing
by such Lender or such Affiliate to or for the credit or the account of any
Credit Party against and on account of the obligations and liabilities of any
Credit Party to such Lender or such Affiliate hereunder and under the other
Credit Documents, including all claims of any nature or description arising out
of or connected hereto or with any other Credit Document, irrespective of
whether or not (a) such Lender or such Affiliate shall have made any demand

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hereunder or (b) the
principal of or the interest on the Loans or any other amounts due hereunder
shall have become due and payable pursuant to Article II or Article VIII, as
the case may be, and although such obligations and liabilities, or any of them,
may be contingent or unmatured.

Section 10.5           Amendments
and Waivers.  (a)  Requisite Lenders’ Consent.  Subject to Section 10.5(b) and 10.5(c), no
amendment, modification, termination or waiver of any provision of the Credit
Documents, or consent to any departure by any Credit Party therefrom, shall in
any event be effective without the written concurrence of the Requisite
Lenders.

(b)           All Lenders’ Consent.  Without the written consent of all Lenders,
no amendment, modification, termination, or consent shall be effective if the
effect thereof would:

(i)            extend
the scheduled final maturity of any Loan or any Note;

(ii)           waive,
reduce or postpone any scheduled repayment (but not prepayment);

(iii)          reduce
the rate of interest on any Loan (other than any waiver of any increase in the
interest rate applicable to any Loan pursuant to Section 2.5) or any fee
payable hereunder;

(iv)          extend
the time for payment of any such interest or fees;

(v)           reduce
the principal amount of any Loan;

(vi)          amend,
modify, terminate or waive any provision of this Section 10.5(b) or Section
10.5(c);

(vii)         amend
the definition of “Requisite
Lenders” or “Pro Rata
Share”; provided, with
the consent of Requisite Lenders, additional extensions of credit pursuant
hereto may be included in the determination of “Requisite Lenders” or “Pro Rata Share” on substantially the same basis as the
Commitments and the Loans are included on the Closing Date;

(viii)        release
any material Guarantor from the Guaranty except as expressly provided in the
Credit Documents; or

(ix)           consent
to the assignment or transfer by any Credit Party of any of its rights and
obligations under any Credit Document.

(c)           Other Consents. 
No amendment, modification, termination or waiver of any provision of
the Credit Documents, or consent to any departure by any Credit Party
therefrom, shall amend, modify, terminate or waive any provision of Section 9
as the same applies to any Agent, or any other provision hereof as the same
applies to the rights or obligations of any Agent, in each case without the
consent of such Agent.

(d)           Execution of Amendments, Etc.  Administrative Agent may, but shall have no
obligation to, with the concurrence of any Lender, execute amendments,
modifications,

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waivers or consents on behalf of such
Lender.  Any waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
it was given.  No notice to or demand on
any Credit Party in any case shall entitle any Credit Party to any other or
further notice or demand in similar or other circumstances.  Any amendment, modification, termination,
waiver or consent effected in accordance with this Section 10.5 shall be
binding upon each Lender at the time outstanding, each future Lender and, if
signed by a Credit Party, on such Credit Party.

Section 10.6           Successors
and Assigns; Participations. 
(a)  Generally.  This Agreement shall be binding upon the
parties hereto and their respective successors and assigns and shall inure to
the benefit of the parties hereto and the successors and assigns of Lenders and
the permitted successors and assigns of the Credit Parties.  No Credit Party’s rights or obligations
hereunder nor any interest therein may be assigned or delegated by any Credit
Party without the prior written consent of all Lenders.  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 and, to the
extent expressly contemplated hereby, Affiliates of each of the Agents and the
Lenders) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

(b)           Register. 
The Company, Administrative Agent and Lenders shall deem and treat the
Persons listed as Lenders in the Register as the holders and owners of the
corresponding Loans listed therein for all purposes hereof, and no assignment
or transfer of any such Loan shall be effective, in each case, unless and until
an Assignment Agreement effecting the assignment or transfer thereof shall have
been delivered to and accepted by Administrative Agent and recorded in the Register
as provided in Section 10.6(e) and the Administrative Agent shall have received
a fee of $3,500.  Prior to such
recordation, all amounts owed with respect to the applicable Loan shall be owed
to the Lender listed in the Register as the owner thereof, and any request,
authority or consent of any Person who, at the time of making such request or
giving such authority or consent, is listed in the Register as a Lender shall
be conclusive and binding on any subsequent holder, assignee or transferee of the
corresponding Loans.

(c)           Right to Assign. 
Each Lender shall have the right at any time to sell, assign or transfer
all or a portion of its rights and obligations under this Agreement, including,
without limitation, all or a portion of its Loans owing to it or other
Obligation (provided, however,
that each such assignment shall be of a uniform, and not varying, percentage of
all rights and obligations under and in respect of any Loan):

(i)            to
any Person meeting the criteria of clause (iv) of the definition of the term of
“Eligible Assignee” upon the giving of notice to the Company and Administrative
Agent; and

(ii)           to
any Person meeting the criteria of any other clause of the definition of the
term of “Eligible Assignee” with the consent of Administrative Agent and, if no
Default or Event of Default has occurred and is continuing, the Company (each
such consent not to be unreasonably withheld or delayed); provided
that each such assignment pursuant to this Section 10.6(c) shall be in an
aggregate amount of not less than $1.0 million (or such lesser amount as may be
agreed to by Administrative Agent and, if no

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Default has occurred and is continuing, the Company, or as shall
constitute the aggregate amount of the Loans of the assigning Lender) with
respect to the assignment of Loans.

(d)           Mechanics. 
The assigning Lender and the assignee thereof shall execute and deliver
to Administrative Agent an Assignment Agreement, together with such forms,
certificates or other evidence, if any, with respect to United States federal
income tax withholding matters as the assignee under such Assignment Agreement
may be required to deliver to Administrative Agent pursuant to Section 2.11.

(e)           Notice of Assignment.  Upon its receipt of a duly executed and
completed Assignment Agreement, together with any forms, certificates or other
evidence required by this Agreement in connection therewith, Administrative
Agent shall record the information contained in such Assignment Agreement in
the Register, shall give prompt notice thereof to the Company (but in no event
shall Administrative Agent be required to give such notice more frequently than
once per week) and shall maintain a copy of such Assignment Agreement.

(f)            Representations and Warranties of Assignee.  Each Lender, upon execution and delivery
hereof or upon executing and delivering an Assignment Agreement, as the case
may be, represents and warrants as of the Closing Date or as of the applicable
Effective Date (as defined in the applicable Assignment Agreement) that (i) it is
an Eligible Assignee; (ii) it has experience and expertise in the making of or
investing in loans such as the applicable Loans; and (iii) it will make or
invest in, as the case may be, its Loans for its own account in the ordinary
course of its business and without a view to distribution of such Loans within
the meaning of the Securities Act or the Exchange Act or other federal
securities laws (it being understood that, subject to the provisions of this
Section 10.6, the disposition of such Loans or any interests therein shall at
all times remain within its exclusive control).

(g)           Effect of Assignment.  Subject to the terms and conditions of this
Section 10.6, as of the “Effective
Date” specified in the applicable Assignment Agreement: (i) the
assignee thereunder shall have the rights and obligations of a “Lender” hereunder, as the
case may be, to the extent such rights and obligations hereunder have been
assigned to it pursuant to such Assignment Agreement and shall thereafter be a
party hereto and a “Lender”
for all purposes hereof; (ii) the assigning Lender thereunder shall, to the
extent that rights and obligations hereunder have been assigned thereby
pursuant to such Assignment Agreement, relinquish its rights (other than any
rights which survive the termination hereof under Section 10.8) and be released
from its obligations hereunder (and, in the case of an Assignment Agreement
covering all or the remaining portion of an assigning Lender’s rights and
obligations hereunder, such Lender shall cease to be a party hereto; provided, anything contained in any of the Credit Documents
to the contrary notwithstanding, such assigning Lender shall continue to be
entitled to the benefit of all indemnities hereunder as specified herein with
respect to matters arising out of the prior involvement of such assigning
Lender as a Lender hereunder); and (iii) if any such assignment occurs after
the issuance of any Note hereunder, the assigning Lender shall, upon the
effectiveness of such assignment or as promptly thereafter as practicable,
surrender its applicable Notes to Administrative Agent for cancellation, and
thereupon the Company shall issue and deliver new Notes, if so requested by the
assignee and/or assigning Lender, to such assignee and/or to such assigning
Lender, with appropriate insertions, to reflect the outstanding Loans of the
assignee and/or the assigning Lender. 
Notwithstanding the foregoing, an assignee,

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including an Eligible Assignee, shall not be
entitled to receive any greater payment under Section 2.11 or Section 2.14 than
the applicable Lender making such assignment would have been entitled to
receive with respect to the assigned portion of the rights and obligations
under this Agreement.

(h)           Participations. 
Each Lender, without notice to or consent of Administrative Agent or the
Company, shall have the right at any time to sell one or more participations to
any Person (other than the Company, any of its Subsidiaries or any of its
Affiliates) in all or any part of its Commitments, Loans or in any other
Obligation.  The holder of any such
participation, other than an Affiliate of the Lender granting such
participation, shall not be entitled to require such Lender to take or omit to
take any action hereunder except with respect to any amendment, modification or
waiver that would (i) extend the final scheduled maturity of any Loan or Note
in which such participant is participating, or reduce the rate or extend the
time of payment of interest or fees thereon (except in connection with a waiver
of applicability of any post-default increase in interest rates) or reduce the
principal amount thereof, or increase the amount of the participant’s
participation over the amount thereof then in effect (it being understood that
a waiver of any Default or Event of Default shall not constitute a change in
the terms of such participation, and that an increase in any Loan shall be
permitted without the consent of any participant if the participant’s
participation is not increased as a result thereof), (ii) consent to the assignment
or transfer by any Credit Party of any of its rights and obligations under this
Agreement or (iii) release any material Guarantor from the Guaranty (except as
expressly provided in the Credit Documents) supporting the Loans hereunder in
which such participant is participating. 
The Company agrees that each participant shall be entitled to the
benefits of Sections 2.11 and 2.14 and 2.16 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to paragraph (c) of
this Section; provided, (i) a participant shall
not be entitled to receive any greater payment under Section 2.11 or 2.14 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 Company’s prior written consent, including
consent to greater payment under Section 2.11 and (ii) a participant that would
be a non-US Lender if it were a Lender shall not be entitled to any of the
benefits of Section 2.11 unless the Company is notified of the participation
sold to such participant and such participant agrees, for the benefit of the
Company, to comply with Section 2.11 as though it were a Lender.  To the extent permitted by law, each
participant also shall be entitled to the benefits of Section 10.4 as though it
were a Lender, provided such Participant agrees
to be subject to Section 2.10 as though it were a Lender.

(i)            Certain Other Assignments.  In addition to any other assignment permitted
pursuant to this Section 10.6, any Lender may assign and/or pledge (without
notice to or the consent of Administrative Agent or the Company) all or any
portion of its Loans, the other Obligations owed by or to such Lender, and its
Notes, if any, to secure obligations of such Lender including, without
limitation, to any Federal Reserve Bank as collateral security pursuant to
Regulation A of the Board of Governors of the Federal Reserve System and any
operating circular issued by such Federal Reserve Bank; provided,
no Lender, as between the Company and such Lender, shall be relieved of any of
its obligations hereunder as a result of any such assignment and pledge, and provided further, in no event shall the applicable Federal
Reserve Bank or trustee be considered to be a “Lender” or be entitled to
require the assigning Lender to take or omit to take any action hereunder.  In the case of any Lender that is a fund that
invests in

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bank loans, such Lender may, without the
consent of the Company or Administrative Agent, assign or pledge all or any
portion of its rights under this Agreement, including the Loans and Notes or
any other instrument evidencing its rights as a Lender under this Agreement, to
any holder of, trustee for, or any other representative of holders of,
obligations owed or securities issued, by such fund, as security for such
obligations or securities; provided that
any foreclosure or similar action by such trustee or representative shall be
subject to the provisions of Section 10.6(c) concerning assignments.

Section 10.7           Independence
of Covenants.  All covenants
hereunder shall be given independent effect so that if a particular action or
condition is not permitted by any of such covenants, the fact that it would be
permitted by an exception to, or would otherwise be within the limitations of,
another covenant shall not avoid the occurrence of a Default or an Event of
Default if such action is taken or condition exists.

Section 10.8           Survival
of Representations, Warranties and Agreements.  All representations, warranties and
agreements made herein shall survive the execution and delivery hereof and the
making of any Loan.  Notwithstanding
anything herein or implied by law to the contrary, the agreements of each
Credit Party set forth in Sections 2.11, 2.14, 2.16, 10.2, 10.3 and 10.4 and
the agreements of Lenders set forth in Sections 2.10, 9.6 and 10.18 shall
survive the payment of the Loans.

Section 10.9           No
Waiver; Remedies Cumulative.  No
failure or delay on the part of any Agent or any Lender in the exercise of any
power, right or privilege hereunder or under any other Credit Document shall
impair such power, right or privilege or be construed to be a waiver of any
default or acquiescence therein, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further exercise thereof
or of any other power, right or privilege. 
The rights, powers and remedies given to each Agent and each Lender
hereby are cumulative and shall be in addition to and independent of all
rights, powers and remedies existing by virtue of any statute or rule of law or
in any of the other Credit Documents . 
Any forbearance or failure to exercise, and any delay in exercising, any
right, power or remedy hereunder shall not impair any such right, power or
remedy or be construed to be a waiver thereof, nor shall it preclude the
further exercise of any such right, power or remedy.

Section 10.10         Marshalling;
Payments Set Aside.  Neither any
Agent nor any Lender shall be under any obligation to marshal any assets in
favor of any Credit Party or any other Person or against or in payment of any
or all of the Obligations.  To the extent
that any Credit Party makes a payment or payments to Administrative Agent or
Lenders (or to Administrative Agent, on behalf of Lenders), or Administrative
Agent or Lenders enforce any security interests or exercise their rights of
setoff, and such payment or payments or the proceeds of such enforcement or
setoff 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, any other state
or federal law, common law or any equitable cause, then, to the extent of such
recovery, the obligation or part thereof originally intended to be satisfied,
and all Liens, rights and remedies therefor or related thereto, shall be
revived and continued in full force and effect as if such payment or payments
had not been made or such enforcement or setoff had not occurred.

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Section 10.11         Patriot
Act Notice.  Each of the Agents and
the Lenders hereby notify the Credit Parties that pursuant to the requirements
of the Patriot Act, it is required to obtain, verify and record information
that identifies each Credit Party, which information includes names and
addresses and other information that will allow it to identify each Credit
Party in accordance with the Patriot Act.

Section 10.12         Severability.  In case any provision in or obligation
hereunder or any Note shall be invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby.

Section 10.13         Obligations
Several; Independent Nature of Lenders’ Rights.  The obligations of Lenders hereunder are
several and no Lender shall be responsible for the obligations or Commitment of
any other Lender hereunder.  Nothing contained
herein or in any other Credit Document, and no action taken by Lenders pursuant
hereto or thereto, shall be deemed to constitute Lenders as a partnership, an
association, a joint venture or any other kind of entity. The amounts payable
at any time hereunder to each Lender shall be a separate and independent debt,
and each Lender shall be entitled to protect and enforce its rights arising out
hereof and it shall not be necessary for any other Lender to be joined as an
additional party in any proceeding for such purpose.

Section 10.14         Headings.  Section headings herein are included herein
for convenience of reference only and shall not constitute a part hereof for
any other purpose or be given any substantive effect.

Section 10.15         APPLICABLE
LAW.  THIS AGREEMENT AND THE RIGHTS
AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
(INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE
OF NEW YORK); PROVIDED THAT EACH AGENT AND EACH
LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

Section 10.16         CONSENT
TO JURISDICTION.  ALL JUDICIAL
PROCEEDINGS BROUGHT AGAINST ANY CREDIT PARTY ARISING OUT OF OR RELATING HERETO
OR ANY OTHER CREDIT DOCUMENT, OR ANY OF THE OBLIGATIONS, MAY BE BROUGHT IN ANY
STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY
OF NEW YORK.  BY EXECUTING AND DELIVERING
THIS AGREEMENT, EACH CREDIT PARTY, FOR ITSELF AND IN CONNECTION WITH ITS
PROPERTIES, IRREVOCABLY (a) ACCEPTS GENERALLY AND UNCONDITIONALLY THE
NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; (b) WAIVES ANY DEFENSE OF
FORUM NON CONVENIENS; (c) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH
PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL,
RETURN RECEIPT REQUESTED, TO THE APPLICABLE CREDIT PARTY AT ITS ADDRESS
PROVIDED IN ACCORDANCE WITH SECTION 10.1; (d) AGREES THAT SERVICE AS PROVIDED
IN CLAUSE (c) ABOVE IS SUFFICIENT TO CONFER

 96
 

 

PERSONAL JURISDICTION
OVER THE APPLICABLE CREDIT PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND
OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (e)
AGREES AGENTS AND LENDERS RETAIN THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY CREDIT PARTY IN THE COURTS
OF ANY OTHER JURISDICTION.

Section 10.17         WAIVER
OF JURY TRIAL.  EACH OF THE PARTIES
HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY OF THE
OTHER CREDIT DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT
MATTER OF THIS LOAN TRANSACTION OR THE LENDER/COMPANY RELATIONSHIP THAT IS
BEING ESTABLISHED.  THE SCOPE OF THIS
WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE
FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION,
INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER
COMMON LAW AND STATUTORY CLAIMS.  EACH
PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER
INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN
ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY ON THIS
WAIVER IN ITS RELATED FUTURE DEALINGS. 
EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED
THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES
ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.  THIS WAIVER IS IRREVOCABLE, MEANING THAT IT
MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN
WAIVER SPECIFICALLY REFERRING TO THIS SECTION 10.17 AND EXECUTED BY EACH OF THE
PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO OR ANY OF THE OTHER CREDIT
DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS MADE
HEREUNDER.  IN THE EVENT OF LITIGATION,
THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

Section 10.18         Confidentiality.  Each Lender and each Agent shall hold all
non-public information regarding the Company and its business identified as
such by the Company and obtained by such Lender or such Agent pursuant to the
requirements hereof in accordance with such Lender’s customary procedures for
handling confidential information of such nature, it being understood and
agreed by the Company that, in any event, a Lender or an Agent may make (i)
disclosures of such information on a need-to-know basis to Affiliates of such
Lender and to their respective agents and advisors (and to other persons
authorized by a Lender or Agent to organize, present or disseminate such
information in connection with disclosures otherwise made in accordance with
this Section 10.18), (ii) disclosures of such information reasonably required
by any bona fide or potential assignee, transferee or participant in connection
with the contemplated assignment, transfer or participation by such Lender of
any Loans or any participations therein (provided, such
persons are advised of and agree to be bound

 97
 

 

by the provisions of this
Section 10.18), (iii) disclosure to any rating agency when required by it, provided that, prior to any disclosure, such rating agency
shall undertake in writing to preserve the confidentiality of any confidential
information relating to the Credit Parties received by it from any of the
Agents or any Lender, and (iv) disclosures required or requested by any
governmental agency or representative thereof or by the NAIC or pursuant to
legal or judicial process; provided,
unless specifically prohibited by applicable law or court order, each Lender
and each Agent shall make reasonable efforts to notify the Company of any
request by any Governmental Authority or representative thereof (other than any
such request in connection with any examination of the financial condition or
other routine examination of such Lender by such Governmental Authority) for
disclosure of any such non-public information prior to disclosure of such
information.

Section 10.19         Usury
Savings Clause.  Notwithstanding any
other provision herein, the aggregate interest rate charged with respect to any
of the Obligations, including all charges or fees in connection therewith
deemed in the nature of interest under applicable law shall not exceed the
Highest Lawful Rate.  If the rate of
interest (determined without regard to the preceding sentence) under this
Agreement at any time exceeds the Highest Lawful Rate, the outstanding amount
of the Loans made hereunder shall bear interest at the Highest Lawful Rate
until the total amount of interest due hereunder equals the amount of interest
which would have been due hereunder if the stated rates of interest set forth
in this Agreement had at all times been in effect.  In addition, if when the Loans made hereunder
are repaid in full the total interest due hereunder (taking into account the
increase provided for above) is less than the total amount of interest which
would have been due hereunder if the stated rates of interest set forth in this
Agreement had at all times been in effect, then to the extent permitted by law,
the Company shall pay to Administrative Agent an amount equal to the difference
between the amount of interest paid and the amount of interest which would have
been paid if the Highest Lawful Rate had at all times been in effect.  Notwithstanding the foregoing, it is the
intention of Lenders and the Company to conform strictly to any applicable
usury laws.  Accordingly, if any Lender
contracts for, charges, or receives any consideration which constitutes
interest in excess of the Highest Lawful Rate, then any such excess shall be
cancelled automatically and, if previously paid, shall at such Lender’s option
be applied to the outstanding amount of the Loans made hereunder or be refunded
to the Company.

Section 10.20         Counterparts.  This Agreement may be executed in any number
of counterparts, each of which when so executed and delivered shall be deemed
an original, but all such counterparts together shall constitute but one and
the same instrument.

Section 10.21         Effectiveness.  Subject to Section 3.1, this Agreement shall
become effective upon the execution of a counterpart hereof by each of the
parties hereto and receipt by the Company and Administrative Agent of written
or telephonic notification of such execution and authorization of delivery
thereof.

[Remainder of page
intentionally left blank]

 98

 

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

	
  

  	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SANMINA-SCI CORPORATION,

  
	
   

  	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
						

 

Sanmina Credit Agreement

 

 

	
  

  	
   

  	
  GUARANTORS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HADCO CORPORATION

  
	
   

  	
   

  	
  HADCO SANTA CLARA, INC.

  
	
   

  	
   

  	
  SCI TECHNOLOGY, INC.

  
	
   

  	
   

  	
  VIKING INTERWORKS INC.

  
	
   

  	
   

  	
  COMPATIBLE MEMORY, INC.

  
	
   

  	
   

  	
  SCI SYSTEMS, INC.

  
	
   

  	
   

  	
  SANMINA-SCI SYSTEMS (ALABAMA) INC.

  
	
   

  	
   

  	
  SANMINA-SCI SYSTEMS HOLDINGS, INC.

  
	
   

  	
   

  	
  INTERAGENCY, INC.

  
	
   

  	
   

  	
  SANMINA-SCI SYSTEMS ENCLOSURES

  
	
   

  	
   

  	
  (DENTON)
  INC.

  
	
   

  	
   

  	
  SCIMEX, INC.

  
	
   

  	
   

  	
  NEWISYS, INC.

  
	
   

  	
   

  	
  SANMINA-SCI ENCLOSURES USA INC.

  
	
   

  	
   

  	
  SANMINA-SCI USA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  All By:

  	
   

  	 

	
   

  	
   

  	
   

  	
  Name:

  	 

	
   

  	
   

  	
   

  	
  Title:

  	 

 

Sanmina Credit Agreement

 

 

	
  

  	
   

  	
  SCI PLANT No. 5, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SANMINA-SCI SYSTEMS (ALABAMA) INC.,

  its Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

Sanmina Credit Agreement

 

 

	
  

  	
   

  	
  SCI PLANT No. 22, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SCI TECHNOLOGY, INC.,

  
	
   

  	
   

  	
  its Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

Sanmina Credit Agreement

 

 

	
  

  	
   

  	
  SANMINA GENERAL, L.L.C.

  
	
   

  	
   

  	
  SANMINA LIMITED, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  All by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SANMINA-SCI CORPORATION,

  
	
   

  	
   

  	
  their Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

Sanmina Credit Agreement

 

                

	
  

  	
   

  	
  SANMINA TEXAS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  SANMINA GENERAL, L.L.C.,

  
	
   

  	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  SANMINA-SCI CORPORATION,

  
	
   

  	
   

  	
   

  	
   

  	
  its Sole Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  
						

 

Sanmina Credit Agreement

 

 

 

	
  

  	
   

  	
  ADMINISTRATIVE AGENT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

Sanmina Credit Agreement

 

 

	
  

  	
   

  	
  SYNDICATION AGENT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CITIBANK, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

Sanmina Credit Agreement

 

 

	
  

  	
   

  	
  DOCUMENTATION AGENT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DEUTSCHE BANK AG CAYMAN ISLANDS BRANCH

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

Sanmina Credit Agreement

 

 

	
  

  	
   

  	
  LENDERS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CITIBANK, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DEUTSCHE BANK AG CAYMAN ISLANDS BRANCH

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
						

 

Sanmina Credit AgreementEXHIBIT 10.55.1

Amended
and Restated Committed Account Receivable Purchase Agreement

Dated                 01
April 2005 and amended and restated on 14 July, 2006

Sanmina-SCI UK Ltd

(Supplier)

Citibank International
Plc

(Bank)

 

Contents

	
  1. Definitions. Unless otherwise expressly defined herein, all
  capitalized terms used herein and defined in the Credit Agreement shall be
  used herein as so defined. Unless otherwise expressly stated herein, all
  Section and Article references herein shall refer to Sections and Articles of
  the Credit Agreement.

  	
  92

  
	
   

  	
   

  
	
  2.
  Amendment to Definitions. (a) Section 1.1 is amended by amending and
  restating the definition of Current Book Value in its entirety as follows:

  	
  92

  
	
   

  	
   

  
	
  3.
  Amendment to Section 6.2. Section 6.2 is amended by deleting the word “and”
  at the end of clause (dd) thereof, deleting the period at the end of clause
  (ee) thereof and replacing it with a “; and” and by adding a new clause (ff)
  as follows:

  	
  93

  
	
   

  	
   

  
	
  4.
  Conditions Precedent. This Amendment shall become effective upon the
  satisfaction of each of the following conditions precedent:

  	
  93

  
	
   

  	
   

  
	
  5.
  Representations and Warranties. The Company hereby represents and warrants to
  the Administrative Agent and the Lenders that, as of the date hereof and after
  giving effect to this Amendment, (a) all representations and warranties set
  forth in the Credit Agreement are true and correct in all material respects
  as if made again on and as of such date (except for those which by their
  terms specifically refer to an earlier date, in which case such
  representations and warranties shall be true and correct in all material
  respects as of such earlier date), (b) no Default or Event of Default has
  occurred and is continuing and (c) the Credit Agreement (as amended by this
  Amendment) and all other Credit Documents are and remain legal, valid,
  binding and enforceable obligations of the Credit Parties in accordance with
  the terms thereof except as may be limited by bankruptcy, insolvency,
  reorganization, moratorium or similar laws relating to or limiting creditors’
  rights generally or by equitable  principles
  (regardless of whether enforcement is sought in equity or at law).

  	
  93

  
	
   

  	
   

  
	
  6.
  Survival of Representations and Warranties. All representations and
  warranties made in this Amendment shall survive the execution and delivery of
  this Amendment, and no investigation by the Administrative Agent or the
  Lenders shall affect the representations and warranties or the right of the
  Administrative Agent or the Lenders to rely upon them. If any representation
  or warranty made in this Amendment is false in any material respect when made,
  then such shall constitute an Event of Default under the Credit Agreement.

  	
  93

  
	
   

  	
   

  
	
  7.
  Reference to Agreement. Each of the Credit Documents, including the Credit
  Agreement, and any and all other agreements, documents or instruments now or
  hereafter executed and/or delivered pursuant to the terms hereof or pursuant
  to the terms of the Credit Agreement as amended hereby, are hereby amended so
  that any reference in such Credit Documents to the Credit Agreement, whether
  direct or indirect, shall mean a reference to the Credit Agreement as amended
  hereby. This Amendment shall constitute a Credit Document.

  	
  93

  
	
   

  	
   

  
	
  8.
  Costs and Expenses. The Company shall pay on demand all reasonable costs and
  expenses of the Administrative Agent (including the reasonable fees, costs
  and expenses of counsel to the Administrative Agent) incurred in connection
  with the preparation, execution and delivery of this Amendment.

  	
  94

  
	
   

  	
   

  
	
  9. Governing
  Law. This Amendment shall be construed in accordance with and governed by the
  laws of the State of New York (including Sections 5-1401 and 5-1402 of the
  General Obligations Law of the State of New York).

  	
  94

  
	
   

  	
   

  
	
  10.
  Execution. This Amendment 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 all of which taken together
  shall constitute one and the same agreement. Delivery of an executed
  counterpart of a signature page to this Amendment by telecopier shall be
  effective as delivery of an manually executed counterpart of this Amendment.

  	
  94

  
	
   

  	
   

  
	
  11. Limited Effect. This Amendment relates only
  to the specific matters expressly covered herein, shall not be considered to
  be a waiver of any rights or remedies any Lender or Agent may have

  	
   

  

 

 

 

	
  

  
	
  under the Credit Agreement or under any other
  Credit Document, and shall not be considered to create a course of dealing or
  to otherwise obligate in any respect any Lender or Agent to execute similar
  or other consents under the  same or
  similar or other circumstances in the future.

  	
  94

  
	
   

  	
   

  
	
  12. Ratification by Guarantors. Each of the
  Guarantors acknowledges that its consent to this Amendment is not required,
  but each of the undersigned nevertheless does hereby agree and consent to
  this Amendment and to the documents and agreements referred to herein. Each
  of the Guarantors agrees and acknowledges that (a) notwithstanding the effectiveness
  of this Amendment, such Guarantor’s Guaranty shall remain in full force and
  effect without modification thereto and (b) nothing herein shall in any way
  limit any of the terms or provisions of such Guarantor’s Guaranty or any
  other Credit Document executed by such Guarantor (as the same may be amended
  from time to time), all of which are hereby ratified, confirmed and affirmed
  in all respects. Each of the Guarantors hereby agrees and acknowledges that
  no other agreement, instrument, consent or document shall be required to give
  effect to this Section 12. Each of the Guarantors hereby further acknowledges
  that Company, Administrative Agent, Collateral Agent and any Lender may from
  time to time enter into any further amendments, modifications, terminations
  and/or waivers of any provision of the Credit Documents without notice to or
  consent from such Guarantor and without affecting the validity or
  enforceability of such Guarantor’s Guaranty or giving rise to any reduction,
  limitation, impairment, discharge or termination of such Guarantor’s
  Guaranty.

  	
  94

  

 

	
  1

  	
  Definitions and Interpretation

  	
  5

  
	
   

  	
   

  	
   

  
	
  Interpretation

  	
  7

  
	
   

  	
   

  
	
  2

  	
  The Facility

  	
  7

  
	
   

  	
   

  	
   

  
	
  3

  	
  Conditions Precedent

  	
  8

  
	
   

  	
   

  	
   

  
	
  4

  	
  Purchase and Sale of Account Receivable

  	
  8

  
	
   

  	
   

  	
   

  
	
  5

  	
  Representations and Warranties

  	
  8

  
	
   

  	
   

  	
   

  
	
  6

  	
  Undertakings

  	
  9

  
	
   

  	
   

  	
   

  
	
  7

  	
  Buy back of Account Receivable

  	
  11

  
	
   

  	
   

  	
   

  
	
  8

  	
  Indemnities

  	
  12

  
	
   

  	
   

  	
   

  
	
  9

  	
  Termination Events

  	
  12

  
	
   

  	
   

  	
   

  
	
  10

  	
  General

  	
  13

  
	
   

  	
   

  	
   

  
	
  11

  	
  Termination

  	
  14

  
	
   

  	
   

  	
   

  
	
  12

  	
  Facility Fee

  	
  14

  
	
   

  	
   

  	
   

  
	
  13

  	
  Notices

  	
  14

  
	
   

  	
   

  	
   

  
	
  14

  	
  Assignments

  	
  15

  
	
   

  	
   

  	
   

  
	
  15

  	
  Governing Law

  	
  15

  

 

 

 

	
  Schedule 1 – Supplier Pricing Schedule

  	
  16

  
	
   

  	
   

  
	
  Schedule 2 – Purchase Pack

  	
  18

  
	
   

  	
   

  
	
  Schedule 3 – Condition Precedent Documents

  	
  21

  

 

 

Committed Account Receivable Purchase Agreement
made on 01 April 2005 as amended and restated on 14 July, 2006

Between

(1)           Sanmina-SCI
UK Ltd (the Supplier)
of 9th Floor, Northwest Wing, Bush House, Aldwych, London, WC2B 4EZ with
registered number 04370464; and

(2)           Citibank
International Plc (the Bank) acting through its office at Citigroup Centre, Canada
Square, Canary Wharf, London E14 5LB.

Whereas

A            From time to time the Supplier enters into commercial trade transactions
with IBM Singapore Pte Ltd of 9 Changi Business Park Central 1, The IBM Place,
Singapore 486048 (the Buyer) for the
sale of goods and/or services, resulting in Account Receivables (as hereinafter
defined) owed by the Buyer to the Supplier; and

B             The Supplier wishes to assign to the Bank from time to time, and the
Bank shall have assigned to it, such Account Receivables subject to the terms
and conditions set forth in this Agreement.

Now, therefore, the Supplier and the Bank agree as
follows:

It is agreed:

1             Definitions
and Interpretation

Account Receivable means any indebtedness of the Buyer to the Supplier, evidenced by an
invoice, which indebtedness shall include the right to receive payment of
interest or finance charges or other liabilities of the Buyer under the
relevant contract to which such invoice relates.

Affiliate means, in relation to any person, a Subsidiary of that person or a
Holding Company of that person or any other Subsidiary of that Holding Company.

Alternative
Sanmina Agreement means the amended and restated committed account
receivable purchase agreement entered into between the Bank and Sanmina-SCI
Magyarorszag Elektronikai Gyarto Kft and dated on or about the date of this
Agreement.

Amendment
and Restatement Deed means the deed of amendment and
restatement dated 14 July, 2006 and made between the Supplier and the Bank,
amending and restating the terms of this Agreement.

Business Day means a day on which banks are open for business in London and the
principal financial centre of each relevant currency.

Charge Over Account means the charge over Collection Account granted by the Supplier in
favour of the Bank and dated on or about 01 April 2005.

Collection Account means the interest bearing (at the overnight rates) account of the
Supplier held at Citibank N.A. with account number 11096532, Sort Code
18-50-08, SWIFT-CITIGB2L and which has been charged by way of first fixed
charge in favour of the Bank.

Commercial Contract means the contract or contracts entered into between the Supplier and
the Buyer in respect of commercial trade transactions, the Account Receivables
of which have been or will be purchased by the Bank pursuant to this Agreement.

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Cut Off Date means in respect of any Account Receivable purchased by the Bank which
has not been paid in full on the Maturity Date for such Account Receivable the
earlier of:

(a)           the date falling 30 days after such Maturity Date (or if such a day is
not a Business Day the next following Business Day); or

(b)           the date falling on which the Buyer makes a payment in full of such
Account Receivable.

Default means:

(a)           a Termination Event; or

(b)           any event or circumstance which would (with the expiry of a grace
period, the giving of notice, the satisfaction of any condition, the making of
any determination or any combination of any of them) become a Termination
Event;

Deferred Amount means, in respect of an Account Receivable, any amount received from
the Buyer in respect of such Account Receivable which is in excess of the
Purchase Price.

Discount Rate means the rate used by the Bank from time to time to calculate the
Purchase Price of any Account Receivable.

Facility Fee means the facility fee payable in accordance with Clause 12.

Holding Company means, in relation to a company or corporation, any other company or
corporation in respect of which it is a Subsidiary.

Insolvency Event means, in relation to the Buyer, that any of the following has
occurred:

(a)           the Buyer shall generally not pay its debts as such debts become due, or
shall admit in writing its inability to pay its debts generally, or any formal
corporate action, legal proceedings or other procedure or step is taken in
relation to (i) the suspension of payments, a moratorium of any indebtedness,
winding-up, dissolution, administration or reorganisation (by way of voluntary
arrangement, scheme of arrangement or otherwise) of the Buyer other than a
solvent liquidation or reorganisation of the Buyer; (ii) a composition,
assignment or arrangement with the creditors of the Buyer as a whole; (iii) the
appointment of a liquidator (other than in respect of a solvent liquidation of
the Buyer), receiver, administrator, administrative receiver, compulsory
manager or other similar officer in respect of the Buyer or any of its assets;
provided, that any such event arising by reason of currency restrictions or
foreign political restrictions or regulations beyond the control of the
Supplier or the Buyer shall not be deemed an “Insolvency Event” hereunder; or

(b)           any procedure or step analogous to any of the foregoing is taken in any
jurisdiction.

Material Adverse Change means any event or circumstance which (when taken alone or together with
any previous event or circumstance) has, or (in the opinion of the Bank formed
in good faith) could reasonably be expected to have, a material adverse change
on all or any of:

(a)           the assets, business or financial condition of the Supplier or the
Buyer;

(b)           the ability of the Supplier and the Buyer to perform their obligations
under this Agreement and the Commercial Contract;

(c)           the validity or enforceability of this Agreement, the Commercial
Contract or the Purchase Pack or the rights of the Bank under any of them.

Maturity Date means, in respect of an Account Receivable, the date on which such
Account Receivable becomes due and payable by the Buyer as specified in the
Purchase Pack.

 6
 

 

Pricing Schedule shall have the meaning set out in Clause 0.

Purchase Date means in relation to any Account Receivable the date when the Bank is
due to pay the Purchase Price in respect of that Account Receivable.

Proposed Purchase Date means in relation to any Account Receivable the date specified as “Purchase
Date” in any Purchase Pack in relation to such Account Receivable.

Purchase Pack means, in relation to each Account Receivable, a document in the form
set out in Schedule 2, duly executed by the parties thereto.

Purchase Price means in relation to any Account Receivable to be purchased by the Bank
at any time, the purchase price thereof as calculated in accordance with the
Pricing Schedule in force at the time of the purchase of such Account
Receivable by the Bank.

Reconciliation Date means a Thursday in any week (or, if such day is not a Business Day,
the immediately following Business Day).

Relevant Percentage means 95.5%,
subject to adjustment by the Bank in accordance with Clause 0.

Saleable Account Receivable means an Account Receivable the subject of a Purchase Pack whose
Maturity Date falls at least 5 Business Days after the Proposed Purchase Date
in respect of such Account Receivable.

Subsidiary means a subsidiary undertaking within the meaning of section 258
of the Companies Act 1985.

Termination Date means 13 July, 2007.

Termination Event means any event or circumstance described in Clause 9 (Termination
Events);

Total Amount means one hundred and fifty million United States Dollars
(US$150,000,000).

Total Purchased Amount means the aggregate of (i) the Purchase Price of all outstanding
Account Receivables purchased by the Bank under this Agreement and (ii) the
Purchase Price of all outstanding Account Receivables purchased by the Bank
under the Alternative Sanmina Agreement (as each such term is defined in the
Alternative Sanmina Agreement).

Interpretation

Any additional capitalised terms are defined in
Schedule 1 to this Agreement.

Unless a contrary indication appears, any reference in
this Agreement to:

(a)           the Supplier and the Bank shall be construed so as to include its successors in
title, permitted assigns and permitted transferees; and

(b)           this Agreement or the Alternative Sanmina Agreement is a reference to this Agreement
or the Alternative Sanmina Agreement as amended, novated, supplemented,
extended or restated from time to time.

2             The
Facility

Subject to the terms and conditions of this Agreement, the Supplier may
from time to time offer to assign and sell Account Receivables to the Bank by
submitting a Purchase Pack to the Bank and the Bank shall acquire such Account
Receivables.

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3             Conditions
Precedent

3.1           Initial conditions precedent

The Supplier may not
deliver a Purchase Pack to the Bank unless the Bank has received all of the
documents and other evidence listed in Schedule 3 (Conditions
Precedent) in form and substance satisfactory to the Bank.  The Bank shall notify the Supplier promptly
upon being so satisfied.

3.1           Further
conditions precedent

The Bank will only be obliged to comply with Clause 4
(Purchase and sale of Account Receivable)
if on the date of the submission of the Purchase Pack and on the Proposed
Purchase Date for the relevant Account Receivables:

(a)           no Default is continuing or would result from the proposed purchase of
the Account Receivables;

(b)           the representations to be made by the Supplier and repeated under
Clause 5 (Representations and Warranties) are true
in all material respects;

(c)           each of the Account Receivables the subject of the relevant Purchase
Pack is a Saleable Account Receivable; and

(d)           the Total Purchased Amount is not greater than the Total Amount and
shall not be greater than the Total Amount immediately after the purchase of
the relevant Account Receivables.

4             Purchase
and Sale of Account Receivable

4.1           The Bank shall (subject to the terms of the Pricing Schedule from time
to time in force) purchase and the Supplier shall, as legal and beneficial
owner, sell such Account Receivable and the Bank shall pay the Purchase Price
in respect of such Account Receivable to the Supplier into the following
account:- Account Number 10403393 with Citibank N.A. (Sort Code 18-50-08 SWIFT
- CITIGB2L) or to such other account or accounts with any such bank or banks as
the Supplier may notify the Bank in writing from time to time, on the date
specified in the Purchase Pack as the Proposed Purchase Date for such Account
Receivable.

4.2           The Bank will provide to the Supplier a pricing schedule from time to
time that sets out the method used to calculate Purchase Prices and other fees
and charges (the Pricing Schedule).  The Bank’s agreement to purchase Account
Receivables hereunder shall be subject to the terms of the Pricing
Schedule.  Each Pricing Schedule shall be
valid for 12 months from the effective date specified therein.  The initial Pricing Schedule is set forth as
Schedule 1 hereto; provided that, in the event that there is an adverse or
beneficial change to the credit rating of International Business Machines
Corporation, the ultimate parent of the Buyer, as determined by either Standard
& Poor’s or Moody’s, the Bank may at any time, upon 30 days written notice
to the Supplier, amend the terms of the Pricing Schedule, provided that any
such change shall not affect the Purchase Price applicable to purchases of
Account Receivable whose Proposed Purchase Date falls within such notice period
and further provided that in the event of any such change to the Pricing
Schedule the Supplier may at any time, upon 30 days written notice to the Bank,
terminate this Agreement.

4.3           Any Deferred Amount received from the Buyer in respect of any Account
Receivable purchased by the Bank under this Agreement shall be for the benefit
of the Supplier.

4.4           The Bank (acting reasonably) shall be able to adjust the Relevant
Percentage from time to time following consultation with the Supplier, provided
that if the Purchase Price relating to an Account Receivable purchased by the
Bank under this Agreement would be less than 95 percent of the Payment Amount
of such Account Receivable (the Minimum Level),
the Bank shall adjust the Relevant Percentage to ensure that the Purchase Price
does not fall below the Minimum Level.

5             Representations
and Warranties

The Supplier hereby
makes the following representations and warranties as of the date hereof, as of
each day a Purchase Pack is delivered hereunder and as of each proposed date
for the purchase of an Account Receivable by the Bank as if made on each such
date with reference to the facts and circumstances then

 8
 

 

existing (it being
understood that representations and warranties with respect to Account
Receivable are made only with respect to the Account Receivable that are the
subject of the applicable Purchase Pack):

(a)           it is duly organised and validly existing under the laws of England and
Wales and possesses the capacity to sue or to be sued in its own name and the
power to own its property and assets and carry on its business as it is now
being conducted and it has taken all necessary steps to authorise the execution
of this Agreement and each Purchase Pack and the transactions contemplated
thereby;

(b)           the contract relating to each Account Receivable assigned to the Bank
is in full force and effect and legal, valid and binding on the Buyer and the
Supplier is not in breach thereof or in default thereunder that would result in
the Buyer being entitled to exercise any set off rights or counterclaim or to
withhold, extend or delay payment of any such Account Receivable;

(c)           this Agreement and each Purchase Pack constitute or will, when
executed, constitute its legal, valid and binding obligations enforceable in
accordance with its terms and each Purchase Pack when duly executed is
effective to assign the Account Receivables referred to therein to the Bank;

(d)           each Account Receivable assigned to the Bank is freely assignable and
constitutes amounts due and payable by the Buyer on the relevant Maturity Date
and each Account Receivable assigned to the Bank pursuant to a Purchase Pack
constitutes an unconditional, legal, valid and binding obligation of the Buyer
and has not, to any extent, been prepaid;

(e)           immediately prior to the execution of each Purchase Pack by the
Supplier, the Supplier was the legal and beneficial owner of each Account
Receivable assigned in such Purchase Pack and it has not assigned, transferred
or otherwise disposed of, or created any encumbrance or security interest over
any such Account Receivable, other than to the Bank;

(f)            it is not aware of any reason why the Bank
should not receive, the amount due in respect of any Account Receivable
assigned to the Bank in each Purchase Pack;

(g)           no invoice for amounts due from the Supplier to the Buyer under or
outside the Commercial Contract remains unpaid by the Supplier for:

(i)            in relation to any invoice with a due date of
45 days or more, 15 days after such due date; or

(ii)           in relation to any invoice with a due date of less than 45 days, 60
days from the date on which the relevant invoice is received by the Supplier,

unless and only to the extent that payment of such invoice is being
contested in good faith and the aggregate amount of invoices so contested under
the Commercial Contract does not exceed 5% of the aggregate amount of all
outstanding invoices for amounts due from the Supplier to the Buyer under or
outside the Commercial Contract at the relevant time; and

(h)           the Supplier has not received notice from the Buyer under the
Commercial Contract of the Buyer’s intention to exercise its right to offset
valid invoices under the Commercial Contract by amounts due and owing from the
Supplier to the Buyer.

6             Undertakings

6.1           The Supplier hereby agrees and undertakes:

(a)           not to create or permit to subsist any encumbrance over any of the
Supplier’s rights, title and interest in and to any Account Receivable the
subject of a Purchase Pack and not to assign, transfer or otherwise deal with
any of its rights in respect of any Account Receivable the subject of a
Purchase Pack;

(b)           in relation to the Commercial Contract:

(i)            to use reasonable and usual care, skill and
forethought in the performance of its obligations under the Commercial
Contract;

(ii)           to take all practical measures to prevent or minimise loss arising in
connection with the Commercial Contract;

 9
 

 

(iii)          to promptly notify the Bank upon becoming aware of any material breach
of any Commercial Contract or of any event materially affecting the performance
of the Commercial Contract;

(c)           forthwith to pay any amount received by it in respect of an Account
Receivable to the Bank and pending such payment hold that amount on trust for
the Bank;

(d)           to assist the Bank in every way to recover each Account Receivable
assigned to the Bank and/or to assist the Bank to perfect the assignment to the
Bank of any Account Receivable in respect of which the Bank has made payment to
the Supplier;

(e)           (i) to maintain and implement administrative and operating procedures
and to keep and maintain all documents, books, records and other information
reasonably necessary or advisable for the collection of all Account Receivables
purchased by the Bank or in order to comply in all material respects with
applicable laws and regulations; (ii) to retain all such records and
information relating thereto so long as any Account Receivable purchased by the
Bank remains outstanding; and (iii) to hand copies of such records and
documentation to the Bank promptly on request; and

(f)            not to amend (other than by way of extension
on substantially the same terms), cancel or terminate any contract to which any
Account Receivable assigned to the Bank relates and not to, or purport to,
terminate, revoke or vary any term or condition of or extend the Maturity Date
of any Account Receivable assigned to the Bank and to refrain from any action
which might in any way prejudice or limit the Bank’s rights under or in respect
of any Account Receivable assigned to the Bank;

(g)           to act as agent for the Bank in the collection of the sums owing under
the Account Receivables and to procure that payments from the Buyer in respect
of Account Receivables are made into the Collection Account.

6.2           The Supplier hereby irrevocably authorizes the Bank, in its sole
discretion, to file any document or financing statements, and any amendments
thereto, in relation to all or any Account Receivable purchased by the Bank,
without the signature of Supplier, to the extent permitted by applicable
law.  If not so permitted by applicable
law, or in such other circumstances as the Bank may reasonably request, the
Supplier will execute and file any such document, financing statements, or amendments
thereto, and such other instruments or notices, as may be necessary or
appropriate to perfect and maintain the perfection of the Bank’s ownership
interest in such Account Receivable.

6.3           The Supplier and the Bank hereby acknowledge and agree that:

(a)           irrespective of the assignment of each Account Receivable to the Bank,
the Supplier remains liable to perform all obligations under the Commercial
Contract and the Bank has assumed no liability to do so;

(b)           the Bank is and shall be irrevocably and unconditionally authorised to
operate the Collection Account as it sees fit and in accordance with the terms
of the Charge Over Account, subject to the terms of Clause 6.3(c);

(c)           no withdrawal may be made by the Supplier from the Collection
Account.  If the Supplier provides the
Bank with an analysis of a remittance advice from the Buyer (as may be
supported by an allocation prepared by the Supplier showing the breakdown in
such remittance advice between sums in relation to Account Receivables and sums
in relation to other debts owed by the Buyer to the Supplier),  the Bank shall, upon reviewing and being
satisfied with such analysis of the remittance advice and allocation, withdraw
from the Collection Account for its own benefit such sums paid by the Buyer by
way of discharge of the Account Receivables (other than the Deferred Amount)
and undertakes to immediately thereafter and on the same day release to an
account designated by the Supplier from time to time all monies from the
Collection Account, which do not relate to the Account Receivables, and the
Deferred Amount, as evidenced by such agreed analysis of the remittance advice
and allocation; and

(d)           interest accruing on credit balances in the Collection Account shall be
for the benefit of the Supplier.

 10
 

 

7             Buy
back of Account Receivable

7.1          Failure to Pay

7.1.1        Notwithstanding
the terms of Clause 4 of this Agreement (Purchase and Sale of Account
Receivable) the Supplier and the Bank agree that, in the event that the Buyer
fails to pay any Account Receivable by the Cut Off Date for such Account
Receivable, provided that no Insolvency Event has occurred and is continuing,
the Bank shall be entitled to require the Supplier to purchase such Account
Receivable from the Bank.  The provisions
of Clause 7.2 shall apply during the period from the Maturity Date to the Cut
Off Date for each such Account Receivable.

7.2          Treatment
of Overdue Account Receivable

Provided that no Insolvency Event has occurred and is
continuing:

7.2.1        If the
Buyer, for any reason whatsoever fails to pay on the Maturity Date for any
Account Receivable purchased by the Bank, in whole or in part, the amount of
such Account Receivable, the Supplier shall pay charges (Discount Rate Charge)
at the relevant Revised Discount Rate calculated in accordance with the most
recent Pricing Schedule on the unpaid amount of any such Account Receivable (as
notified by the Bank to the Supplier), subject as provided in this Clause. Such
Discount Rate Charges shall:

(i)            accrue from day to day during each period from
(and including) such Maturity Date to (but excluding) the next Reconciliation
Date and each subsequent period which shall commence forthwith upon the expiry
of the previous period and end (but excluding) on the next Reconciliation Date
provided that if a period would otherwise end on a date falling after the Cut
Off Date in respect of such unpaid Account Receivable, such period shall
instead end on the Cut Off Date; and

(ii)           be calculated as if the unpaid amount of such Account Receivable was
repaid on the earlier of (i) the date of actual payment and (ii) the relevant
Cut Off Date.

Discount Rate Charge in
relation to any unpaid Account Receivable shall only accrue up to the Cut Off
Date for such Account Receivable and it shall only be payable by the Supplier
on such Cut Off Date.

7.2.2        At any
time on or after the Cut Off Date and to the extent that any Account Receivable
remains unpaid, the Bank may sell, as legal and beneficial owner, to the
Supplier and the Supplier shall purchase such Account Receivable and the Bank
shall (at the cost and expense of the Supplier) execute such documents as may
be necessary to re-assign any rights the Bank may have in relation to such
Account Receivable to the Supplier and the Supplier shall pay to the Bank in
respect of such Account Receivable an amount equal to and in the same currency
as the unpaid amount of such Account Receivable together with the Discount Rate
Charge calculated in accordance with Clause 7.2.1. Such Cut Off Date shall be
notified by the Bank to the Supplier, but failure to notify shall not affect
the payment obligations of the Supplier hereunder.

7.3          Default Interest

7.3.1        In the
event that any amount payable by the Supplier pursuant to Clause 7.2 or this
Clause 7.3 remains unpaid on the date on which it becomes due and payable the
Bank shall charge and the Supplier shall pay interest from time to time on any
such unpaid amount due from the Supplier to the Bank during the period from
(and including) the due date thereof to (but excluding) the date payment is
received by the Bank in full, at a rate equal to the aggregate of (i) the
Discount Rate applicable pursuant to the most recent Pricing Schedule
(calculated by reference to such calculation periods ending on or before the
date payment is made in full as the Bank may select and notify to the Supplier
from time to time ) and (ii) 2% per annum.

7.3.2        Such
interest calculated pursuant to Clause 7.3.1 shall be payable by the Supplier
at the end of each calculation period selected and notified by the Bank (as
referred to above) by reference to which interest is calculated and shall be
billed to the Supplier and paid separately from any other amounts owing under
this Agreement.

 11
 

 

8             Indemnities

8.1           The Supplier shall pay to the Bank on demand on a full indemnity basis:

(a)           all reasonable costs, charges and expenses including legal costs, in
relation to the enforcement of this Agreement and any Purchase Pack; and

(b)           all stamp, documentary, registration or other like duties or taxes
(other than taxes based on Bank’s income), including withholding taxes and any
penalties, additions, fines, surcharges or interest relating thereto, or any
notarial fees which are imposed or chargeable on or in connection with this
Agreement or any Purchase Pack or the purchase by the Bank of any Account
Receivable.

8.2           The Supplier agrees to indemnify the Bank on demand against any loss or
expense (including, but not limited to, any loss of the margin or any other
loss or expense sustained or incurred by the Bank in liquidating or employing
deposits acquired or contracted for to effect its acquisition of an Account
Receivable) which the Bank has sustained or incurred as a consequence of a
purchase of an Account Receivable not being made following the service of a
Purchase Pack for any reason whatsoever.

9             Termination
Events

9.1           Each of these events or circumstances is a Termination Event:

(a)           Non-payment – the Buyer does not pay on the due date any
amount payable pursuant to the Commercial Contract at the place and in the
currency in which it is expressed to be payable unless:

(i)            its failure to pay is caused by
administrative or technical error; and

(ii)           payment is made within thirty days of its due date; or

(iii)          the Supplier repurchases the relevant Account Receivable,

(b)           Other obligations – the Buyer or the Supplier does not comply
with any material provision of the Commercial Contract (other than those
referred to in sub clause (a) (Non-payment)
and such failure (if capable of remedy) is not remedied within thirty days.

(c)           Misrepresentation – any representation or statement made or
deemed to be made by the Supplier in this Agreement is or proves to have been
incorrect or misleading in a material respect in the context of this Agreement
when made or deemed to be made.

(d)           Insolvency

(i)            The Supplier or the Buyer is unable or admits
inability to pay its debts as they fall due, suspends making payment on any of
its debts or, by reason of actual or anticipated financial difficulties,
commences negotiations with one or more of its creditors with a view to
rescheduling any material amount of its indebtedness.

(ii)           A moratorium is declared in respect of any financial indebtedness of
the Supplier or the Buyer.

(e)           Insolvency proceedings – any corporate action, legal proceedings or
other procedure is taken in relation to:

(i)            the suspension of payments, a moratorium of
any indebtedness, winding-up, dissolution, administration, examinership or
reorganisation (by way of voluntary arrangement, scheme of arrangement or
otherwise) of the Supplier or the Buyer;

(ii)           a composition, assignment or arrangement with the creditors as a whole
of either the Supplier or the Buyer;

 12
 

 

(iii)          the appointment of a liquidator, receiver, administrator,
administrative receiver, examiner, compulsory manager or other similar officer
in respect of the Supplier or the Buyer or any its assets; or

(iv)          enforcement of any encumbrance over any of the Supplier or the Buyer
assets,

or any analogous procedure or step is taken in any jurisdiction.

(f)            Material Adverse Change – the occurrence of a Material Adverse
Change.

(g)           Sanmina-SCI Corporation

Any of the
following occur in relation to Sanmina-SCI Corporation (a company registered in
the State of Delaware as company number 2195845) (“Sanmina-SCI
Corporation”):

(i)            the credit rating of Sanmina-SCI Corporation,
as provided by Standard & Poor’s Rating Services or Moody’s Investor
Services, is downgraded by two or more sub-grades from its credit rating on the
date of Amendment and Restatement Deed; and

(ii)           there occurs an event of default (howsoever described) under any credit
facility provided by the Bank or any of the Bank’s Affiliates to Sanmina-SCI
Corporation and/or any of its Affiliates including (without limitation) the
Amended and Restated Credit and Guaranty Agreement dated as of 16 December 2005
and made among (amongst others) Sanmina-SCI Corporation, the subsidiaries of
Sanmina – SCI Corporation party thereto as guarantors, the lenders from time to
time party thereto, Bank of America N.A. as administrative agent and Citibank N.A.
as collateral agent.

(h)           Breach of obligations – the Supplier does not comply with any provision of this Agreement
and such failure, if capable of remedy, is not remedied within 15 Business Days
of the Bank giving notice to the Supplier or of the Supplier becoming aware of
the failure to comply.

9.2           If a Termination Event occurs and is continuing unremedied or unwaived
for 30 days the Bank may, by notice to the Supplier, terminate the operation of
Clause 2 (The Facility) or suspend the operation of that clause for such period
as the Bank may specify; provided that for the avoidance of doubt the Bank
shall be obliged to acquire all Account Receivable with a Purchase Date prior
to the receipt of such notice by the Supplier.

10           General

10.1         Any amounts which but for this Clause 10.1 would fall due for payment
by the Bank or the Supplier on a day other than a Business Day shall be payable
on the succeeding Business Day and the Purchase Price (or as the case may be,
the amount payable by the Supplier) shall, where necessary, be adjusted
accordingly.

10.2         The Supplier agrees and acknowledges that it has taken independent
legal and accounting advice in relation to the accounting treatment to be
applied to the transactions contemplated herein and the Purchase Pack.  It is agreed that the Supplier has not relied
on any representation of the Bank in this regard.

10.3         The Bank shall be entitled to rely on any communication sent by the
Supplier irrespective of any error or fraud contained in the communication or
the identity of the individual who sent the communication, and shall not be
liable for any action taken or omitted in reliance on any notice, direction,
consent, certificate, affidavit, statement, designation or other paper or
document reasonably believed by it to be genuine and to have been duly and
properly signed and presented to it by the Supplier.

10.4         In no event shall the Bank be liable for any loss of profits, business,
data or information or for any incidental, indirect, special or consequential
damages whether arising from negligence, breach of contract or otherwise, even
if informed of the possibility of those losses or damages.  The Bank shall not be liable for any losses
arising out of or relating to any of its actions or omissions to act hereunder,
except to the extent that any such losses are caused by the Bank’s wilful
misconduct, fraud or gross negligence.

10.5         This Agreement may be executed in any number of counterparts (including
by facsimile transmission) and all of such counterparts taken together shall be
deemed to constitute one and the same instrument.

 13
 

 

10.6         The Supplier shall remain liable to perform all obligations assumed by
it under any Commercial Contract and the Bank shall be under no obligation of
any kind whatsoever under such contract or be under any liability whatsoever in
the event of any failure by the Supplier to perform its obligations under any
such contract.

11           Termination

11.1         On the Termination Date the Bank shall have no further obligation to
purchase Account Receivables from the Supplier.

11.2         Notwithstanding clauses 9.1, 9.2 and 11.1 above, each of the Supplier
and the Bank may, by giving not less than 90 days’ prior written notice to the
other party, terminate this Agreement; provided that for the avoidance of
doubt, the Bank shall be obliged to acquire all Account Receivables with a
Purchase Date falling prior to the last day
of such 90 day notice period.

12           Facility
Fee

12.1         Subject to clause 12.3 below, the Supplier shall pay to the Bank a
facility fee of 25 basis points per annum on the Total Amount (the Facility Fee) for the period from and
including the date of the Amendment and Restatement Deed to and including the
Termination Date.

12.2         The Supplier shall pay the accrued Facility Fee by the third Business
Day of each calendar quarter after receipt of an invoice from the Bank.

12.3         The aggregate liability of the Supplier under this clause 12 and
Sanmina-SCI Magyarorszag Elektronikai Gyarto Kft (the Alternative
Supplier)
under clause 12 of the Alternative Sanmina Agreement to pay the Facility Fee
shall not exceed the total amount of the Facility Fee.  If the Alternative Supplier pays any or all
of Facility Fee under the Alternative Sanmina Agreement, the Facility Fee
payable under this Agreement shall be reduced by the amount so paid by the
Alternative Supplier.

13           Notices

13.1         All notices, requests and demands given or made under this Agreement
shall be given or made in writing and unless otherwise stated shall be made by
telefax or letter using the address as specified below or such other address as
the party may designate to the other party:

13.1.1     To the Supplier:

Attention:               Treasury Manager

Address: 7 West Nile Street, Glasgow, G1
2PR Facsimile:              44 141
245 2882

with a
copy to:-                     Sanmina-SCI
Corporation

Attention:                               Corporate
Treasurer

Address:                 2700 North First
Street, San Jose, CA 95134

Facsimile:                                (408)
964 3644

 14
 

 

13.1.2     To the Bank

Attention:               Trade Services

Address: 4th Floor. 68 Molesworth Street,
Lewisham, London, SE13 7EU

Facsimile:                0207 500 8063

with a
copy to:

Attention:               Trade Finance/Dror
Polak

Address:               Citigroup Centre,
Canada Square, Canary Wharf, London E14 5LB.

Facsimile:               44 207 500 2624

13.2         All notices or other communication shall be deemed to have been
received:

(i)            if sent by fax with a confirmed receipt of
transmission from the receiving machine, on the day on which transmitted;

(ii)           in the case of a notice given by hand, on the day of actual delivery;

(iii)          if sent by post, 5 Business Days after being deposited in the post with
first class prepaid postage,

provided that a notice given in accordance with the above but received
on a day which is not a Business Day or after normal business hours in the
place of receipt shall be deemed to have been received on the next Business
Day.

14           Assignments

The Bank may at any time
assign, transfer or sub participate (including by way of novation) any of its
rights hereunder or under any Purchase Pack to another bank or financial
institution. The Supplier may not assign or otherwise transfer its rights,
benefits or obligations or any of them hereunder.

15           Governing
Law

15.1         This Agreement shall be governed by and construed in accordance with
English law.

15.2         The Supplier irrevocably agrees for the exclusive benefit of the Bank
that the courts of England shall have jurisdiction to hear and determine any
suit, action or proceeding and to settle any dispute which may arise out of or
in connection with this Agreement and for such purposes irrevocably submits to
the jurisdiction of such courts.  The
Supplier irrevocably waives any objection which it may have now or in the
future to the courts of England being nominated for the purpose of this Clause
on the ground of venue or otherwise and agrees not to claim that any such court
is not a convenient or appropriate forum.

As witness the hands of the authorised signatories of the parties
hereto the day and year first above written.

	
  The Supplier

  	
   

  
	
   

  	
   

  
	
  Executed
  for and

  	
  )

  
	
  on behalf of Sanmina-SCI UK Ltd

  	
  )

  
	
   

  	
  )

  
	
  by

  	
  /S/ SHELLY BYERS

  	
   

  	
  )

  
	
   

  	
   

  
	
  The
  Bank

  	
   

  
	
   

  	
   

  
	
  Executed
  for and on behalf of

  	
  )

  
	
  Citibank
  International Plc

  	
  )

  
	
  by /S/ ERIC
  VAN DE PEER

  	
  )

  
				

 

 15
 

 

Schedule 1 – Supplier Pricing Schedule

Supplier Name:
Sanmina-SCI UK Ltd

Control
Number:

(to be completed
by the Bank)

A.            Licensing Fees and Charges

Facility
Fee is 0.25% per
annum.

B.            Fees and Charges in connection
with purchase of Account Receivables

1.             The Bank will calculate the Initial
Discount Charge for each Account Receivable on its Purchase Date and on each
Reconciliation Date it will calculate the Revised Discount Charge for that
Account Receivable in accordance with this Pricing Schedule.

2.             If on the Reconciliation Date falling
immediately after the Maturity Date for an Account Receivable purchased by the
Bank, the Bank calculates that there is a difference between the Initial
Discount Charge and the aggregate Revised Discount Charge for such Account
Receivable, the Bank shall, subject to receipt of the Reconciliation Report in
accordance with paragraph 3 below, debit or credit the Collection Account with
the amount of such difference.

3.             The Supplier shall deliver to the Bank on
each Business Day by no later than 1.30pm a reconciliation report in the form
previously agreed with the Bank (the Reconciliation Report).

4.             On each Reconciliation Date, the Bank
shall debit the Collection Account with the amount of any sums which are due to
the Bank under the terms of the Agreement (including this schedule).

Initial
Discount Charge
for each Account Receivable means the Payment Amount of such Account Receivable
multiplied by the Initial Discount Rate:

Initial
Discount Charge = Payment Amount X Initial Discount Rate

Where:

Initial
Discount Period
means the number of days in the period starting from (and including) the
Purchase Date for any Account Receivable to (but excluding) the Maturity Date
of such Account Receivable.

Initial
Discount Rate means:

on the Purchase Date for
each Account Receivable, the rate percent per annum calculated as follows:

Initial Discount
Rate =(LIBOR + Spread) X (Initial Discount Period / 360)

Each Initial Discount
Rate is identified on the Purchase Date for each respective Purchase Pack and
will apply to any Account Receivable from that respective Purchase Pack for the
period from the Purchase Date until the date on which such Account Receivable paid
by Buyer or repurchased by Supplier.

LIBOR means :

(a)            the applicable Screen
Rate; or

(b)           (if no Screen Rate is
available) the rate at which the Bank was offering deposits for the relevant
period in an amount comparable to the Account Receivable in the relevant
currency to leading banks in the London interbank market.

Payment
Amount in respect
of any Account Receivable means the face amount of such Account Receivable
(including VAT) due from a Buyer on the Maturity Date of such Account
Receivable.

 16
 

 

Purchase
Price means, in
respect of any Account Receivable, the Relevant Percentage of the Payment
Amount, less the Initial Discount Charge applicable to such Account Receivable.

Revised
Discount Charge
for each Account Receivable means the Outstanding Account Receivable Amount of
such Account Receivable multiplied by the Revised Discount Rate;

Revised Discount Charge = Outstanding Account
Receivable Amount X Revised Discount Rate

Where:

Outstanding
Account Receivable Amount means in relation to any Account
Receivable, the outstanding amount of such Account Receivable on any
Reconciliation Date.

Revised
Discount Period means the number of days in the period
starting from (and including) the first Reconciliation Date falling after the
Purchase Date for any Account Receivable to (but excluding) the next
Reconciliation Date and each subsequent period which shall commence forthwith
upon the expiry of the previous period and end on (but excluding) the next
Reconciliation Date.

Revised
Discount Rate means:

on each Reconciliation
Date falling after the Purchase Date for each Account Receivable, the rate
percent per annum calculated as the sum of LIBOR for the Revised Discount
Period and the Spread, multiplied by the Revised Discount Period and divided by
360:

Revised Discount
Rate =(LIBOR + Spread) X (Revised Discount Period / 360)

The Revised Discount Rate
is identified on the Reconciliation Date for each Account Receivable following
its Purchase Date and for each Revised Discount Period.

Screen
Rate means in relation to LIBOR the interest rate for Dollar
deposits for the relevant period which is displayed on the screen displays
designated “LIBOR01” and “ICAP01” of the Reuters service (or such other page
which may replace them for the purpose of displaying British Bankers’ Association
Interest Settlement Rates for Dollar deposits in the London interbank market)
at or about 11.00am London time on the applicable day.

Spread is equal to 0.40% per annum.

Transaction
Fee of $0 will be
charged for each purchase of Account Receivables offered in a Purchase Package.

C.            Effective Date:

(1)           Effective Date means the Effective Date
under and as defined in the Amendment and Restatement Deed (the Amended Effective Date).

(2)           Subject to Clause 4.2, the above pricing is valid from the Amended
Effective Date until (and including) the first anniversary of the Amended
Effective Date.

 17
 

 

Schedule 2
– Purchase Pack

To:          Citibank International Plc

and

IBM
Singapore PTE Ltd
(“Buyer”)

Date:

Dear
Sirs,

1.             Sanmina SCI-UK Ltd (the Supplier)
as legal and beneficial owner, hereby assigns absolutely with full title
guarantee to Citibank International Plc (the Bank)
with effect from **                     (this date must fall at least [·] Business Days after the
date of the Purchase Pack) (the “Purchase Date”)
all its right, title and interest in and to the amounts payable to the Supplier
by IBM Singapore PTE Ltd (the Buyer) in
relation to and evidenced by the Account Receivables listed in the email sent
to tradefinance.europe@citigroup.com from                            at         pm
on          and as further evidenced by
the summary of such Account Receivables set out in appendix 1 attached to this
Purchase Pack.

2.             Assignment

This Assignment shall
have the effect of assigning to the Bank all of our right, title, benefit and
interest in and to all monies due to us from time to time in relation to each
Account Receivable referred to above including, in each case, all rights to
demand, receive or dispose of any such monies or claims, all rights to sue for
or in relation thereto and all rights of action against any person in
connection therewith or otherwise to enforce the same.

3.             Representations

3.1           The Supplier confirms that all representations and warranties set out in
the agreement between the Supplier and the Bank dated **                    as amended from time to
time (the Agreement) are correct as at the date
hereof and as of the Proposed Purchase Date in respect of each Account
Receivable referred to above and the circumstances existing on the date hereof
now and as of the Proposed Purchase Date.

3.2           The Supplier hereby represents and warrants that a copy of this Purchase
Pack has been delivered to the Buyer and (a) the Buyer has been notified of the
assignment by the Supplier to the Bank of the Account Receivables referred to
in this Purchase Pack and (b) the Buyer has been instructed to pay all sums
becoming due and payable under or by virtue of each Account Receivable to the
Collection Account held at the Bank.

4.             Notice

4.1           The Supplier hereby notifies the Buyer of the assignment set out
above.  As assignee of each Account
Receivable referred to above, the Bank is therefore entitled to collect or
recover for its own account the sums due by the Buyer in respect of such
Account Receivable and each of the Supplier and the Bank hereby irrevocably
instruct the Buyer to pay all sums becoming due and payable under or by virtue
of the above Account Receivable to account number                      ,
Sort Code                        ,
SWIFT                        
(the Collection Account) held at Citibank
N.A.

6              No Implied Duties

The
Bank shall be obliged to perform such duties and only such duties as are
specifically set forth herein, and no implied duties or responsibilities shall
be read or implied into this agreement. 
Notwithstanding any other provision elsewhere contained, the Bank does
not assume any obligation or relationship of agency or trust hereunder for, or
with, the Supplier, the Buyer, or any other person.

 18
 

 

7              Counterparts

This agreement may be
executed in any number of counterparts (including by facsimile transmission)
and all of such counterparts taken together shall be deemed to constitute one
and the same instrument.

8             Governing
law and jurisdiction

8.1           This
agreement shall be governed by and shall be construed in accordance with
English law.

8.2           The
Supplier irrevocably agrees for the exclusive benefit of the Bank that the
courts of England shall have jurisdiction to hear and determine any suit,
action or proceeding and to settle any dispute which may arise out of or in
connection with this agreement and for such purposes irrevocably submits to the
jurisdiction of such courts.  The
Supplier irrevocably waive any objection which it may have now or in the future
to the courts of England being nominated for the purpose of this Clause on the
ground of venue or otherwise and agrees not to claim that any such court is not
a convenient or appropriate forum.

Dated:

 

Signed
for and on behalf of

Sanmina SCI-UK Ltd

 19
 

 

APPENDIX
1

Summary
of Account Receivables

 20
 

 

Schedule 3 – 
Condition Precedent Documents

(A)          For the Supplier

(a)           a copy of its constitutional documents

(b)           a certificate of an authorised signatory certifying that each copy
document relating to it specified in this Schedule is correct, complete and in
full force and effect as at a date no earlier than the date of this Agreement.

(c)           Certified copies of resolutions of the Supplier’s board of directors
authorising the acceptance and execution of this agreement and each Purchase
Pack and authorising a person or persons to sign this agreement and each
Purchase Pack from time to time.

(B)           Other

(a)           An original first fixed charge over the Collection Account granted by
the Supplier in favour of the Bank.

(b)           An original guaranty granted by Sanmina-SCI Corporation in favour of
the Bank.

(c)           Account opening mandate for the Collection Account.

(d)           Such other documents,
opinions, consents, licences, assurance or evidence as the Bank considers
relevant and may request.

 21

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