Document:

Unassociated Document

    
      
        

      

    

    EXHIBIT
10.9

      

    WAIVER
OF ANTI-DILUTION RIGHTS

     

    
       

      This
WAIVER OF ANTI-DILUTION RIGHTS (“Waiver”) is entered
into as of this 16th day of August, 2010 by and among The Amacore Group, Inc., a
Delaware corporation (the “Company”) and Vicis
Capital Master Fund, a series of the Vicis Capital Master Trust, a trust formed
under the laws of the Cayman Islands (“Vicis”).

       

      WHEREAS,
Vicis holds shares of the Company’s Series G Convertible Preferred Stock, par
value $0.001 per share, Series H Convertible Preferred Stock, par value $0.001
per share, Series I Convertible Preferred Stock, par value $0.001 per share, and
Series L Convertible Preferred Stock, par value $0.001 per share, set forth on
Schedule B
attached hereto (collectively, the “Preferred Stock”),
and warrants (the “Warrants”) to
purchase shares of the Company’s Class A Common Stock, par value $0.001 per
share (“Class A Common
Stock”);

       

      WHEREAS,
Section 7.3(c) of each Certificate of Designation designating each series of the
Preferred Stock and each Warrant set forth on Schedule A hereto,
provide for certain anti-dilution adjustments to the conversion prices of the
Preferred Stock and/or exercise prices of the Warrants upon certain offers or
issuances of shares of Class A Common Stock or securities convertible into or
exercisable for shares of Class A Common Stock at a price per share or
conversion or exercise price per share less than the conversion price or warrant
price, as applicable, then in effect with respect to each class of Preferred
Stock and the Warrants (“Anti-Dilution
Rights”);

       

      WHEREAS,
in connection with the execution of a certain Securities Purchase Agreement of
even date herewith, Vicis is acquiring Senior Secured Convertible Notes (“Senior Notes”) issued
by the Company; and

       

      WHEREAS,
Vicis desires to waive any Anti-Dilution Rights it may have with respect to the
issuance of the Senior Notes.

       

      NOW,
THEREFORE, for and in consideration of the receipt of valuable consideration,
the receipt of which is hereby acknowledged, and intending to be legally bound,
Vicis hereby represents and warrants that it is the sole beneficial and record
owner of the Warrants identified on Schedule A and the
shares of Preferred Stock identified on Schedule B and hereby
waives any and all Anti-Dilution Rights that may arise from the issuance of the
Senior Notes.

       

      This
waiver shall be binding upon the Company and Vicis and their respective
successors and assigns.

       

      To the
extent necessary for this Waiver to be effective, it shall be considered a
written consent of the holders of the shares of Preferred Stock under the
applicable provisions of the Delaware General Corporate Law.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      IN
WITNESS WHEREOF, the undersigned has executed and delivered this Waiver as of
the date first written above.

         

      
        
          
            	 	      
                    VICIS CAPITAL MASTER FUND

                        By:  Vicis Capital
      LLC

                  	 
	 	 	 	 
	
                     

                  	
                     

                  	_____________________________	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	 	Date
      of Signature: _______________	 

          

        

      

       

       

       

       

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

       

      SCHEDULE
A

       

      Warrants

       

      
        	
                1.

              	
                Warrant
      issued on March 13, 2008 and expiring on March 13, 2013 to purchase
      45,000,000 shares of Class A Common Stock at an initial exercise price of
      $0.375 per share.

              

      

       

      
        	
                2.

              	
                Warrant
      issued on April 30, 2008 and expiring on April 30, 2013 to purchase
      22,500,000 shares of Class A Common Stock at an initial exercise price of
      $0.375 per share.

              

      

       

      
        	
                3.

              	
                Warrant
      issued on June 2, 2008 and expiring on June 2, 2013 to purchase 45,000,000
      shares of Class A Common Stock at an initial exercise price of $0.375 per
      share.

              

      

       

      
        	
                4.

              	
                Warrant
      issued on September 30, 2008 and expiring on September 30, 2013 to
      purchase 45,000,000 shares of Class A Common Stock at an initial exercise
      price of $0.375 per share.

              

      

       

      
        	
                5.

              	
                Warrant
      issued on October 6, 2008 and expiring on October 6, 2013 to
      purchase 22,500,000 shares of Class A Common Stock at an initial exercise
      price of $0.375 per share.

              

      

       

      
        	
                6.

              	
                Warrant
      issued on December 31, 2008 and expiring on December 31, 2013 to purchase
      28,125,000 shares of Class A Common Stock at an initial exercise price of
      $0.375 per share.

              

      

       

      
        	
                7.

              	
                Warrant
      issued on January 13, 2009 and expiring on January 13, 2014 to
      purchase 45,000,000 shares of Class A Common Stock at an initial exercise
      price of $0.375 per share.

              

      

       

      
        	
                8.

              	
                Warrant
      issued on March 31, 2009 and expiring on March 31, 2014 to purchase
      45,000,000 shares of Class A Common Stock at an initial exercise price of
      $0.375 per share.

              

      

       

      
        	
                9.

              	
                Warrant
      issued on June 29, 2009 and expiring on June 29, 2014 to purchase
      50,625,000 shares of Class A Common Stock at an initial exercise price of
      $0.375 per share.

              

      

       

       

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

      

      SCHEDULE
B

       

      Shares
of Preferred Stock Owned by Vicis

       

      
        	
                1.

              	
                1,200
      shares of Series G Convertible Preferred
Stock

              

      

      
        	
                2.

              	
                400
      shares of Series H Convertible Preferred
Stock

              

      

      
        	
                3.

              	
                1,650
      shares of Series I Convertible Preferred
Stock

              

      

      
        	
                4.

              	
                1,050
      shares of Series L Convertible Preferred
Stock

              

      

      

      

       

       

       

       

       

       

      

        -4-exhibit105.htm

  

  

  

A D D E N D U M

THIS ADDENDUM, made this 25th day of June 2010 (“Addendum”), by and among LINCOLN RESOURCES INC., a body corporate, incorporated under the laws of the State of Nevada (hereinafter called "LINCOLN"), and NORTH BAY RESOURCES INC.., a body corporate, incorporated under the laws of the State of Delaware (hereinafter called "North Bay"), to that certain Coronation Gold Property Joint-Venture Agreement, dated August 6, 2009 (the “JV Agreement”), by and among  the Parties. Terms not defined otherwise herein shall have the meanings ascribed to them in the JV Agreement.

WHEREAS, pursuant to the JV agreement, North Bay agreed to farm out an interest in the JV Lands to Lincoln on the terms and conditions set forth therein.

WHEREAS, the Parties desire to enter into this Addendum to supplement and clarify the terms and conditions of the JV Agreement.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained herein, the Parties jointly and severally agree to the following:

	
1.  

	
Work Commitment

Upon the execution and delivery of this Addendum, and in consideration of an aggregate of $10,000 (USD) to be paid to North Bay, with $5,000 USD due on or before August 6, 2010, and the remaining $5,000 due on or before September 6, 2010, each of the Parties agree that the obligations of the Parties regarding the Commitment as set forth in section 4 of the JV Agreement shall be extended for one year, such that expenditures required in the first year of the agreement are extended until August 6, 2011, and further expenditures extended similarly by one year.

IN WITNESS WHEREOF, the Parties hereto have duly executed this Addendum to the JV Agreement as of this 25th day of June, 2010.

 

LINCOLN RESOURCES INC

 

 

By:  ___/s/ Phillip Foreman ______________

 

Name: Phillip Foreman

 

Title:           President

 

 

NORTH BAY RESOURCES INC.

 

By: ___/s/ Perry Leopold  ______________

 

Name: Perry Leopold

 

Title:           CEOExhibit
10.1

 

EXECUTION COPY

 

 

CREDIT AGREEMENT

 

dated as of

 

May 14, 2010

 

among

 

IKARIA, INC.,

 

IKARIA ACQUISITION INC.,

 

THE LENDERS PARTY HERETO

 

and

 

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,

as Administrative Agent and Collateral Agent

 

 

CREDIT SUISSE SECURITIES (USA) LLC,

 

as Sole Bookrunner and Sole Lead Arranger,

 

and

 

FIFTH/THIRD BANK

 

and

 

SUNTRUST BANK,

 

as Co-Syndication Agents

 

 

[CS&M Ref No. 05865-713]

 

THE TERM LOANS MADE PURSUANT TO THIS AGREEMENT WERE INCURRED WITH
ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTION 1271 ET SEQ. OF THE UNITED
STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED FROM TIME TO TIME.  BEGINNING NO LATER THAN 10 DAYS AFTER THE
CLOSING DATE, A LENDER MAY OBTAIN THE ISSUE PRICE, AMOUNT OF ORIGINAL
ISSUE DISCOUNT, ISSUE DATE AND YIELD TO MATURITY OF THE TERM LOANS BY
SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO THE BORROWER AT THE
FOLLOWING ADDRESS: IKARIA ACQUISITION INC., 6 ROUTE 173, CLINTON, NJ 08809.

 

 

Table of Contents

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I

  
	
   

  
	
  Definitions

  
	
   

  	
   

  
	
  SECTION 1.01. Defined Terms 

  	
  1

  
	
  SECTION 1.02. Terms
  Generally 

  	
  27

  
	
  SECTION 1.03. Classification
  of Loans and Borrowings 

  	
  27

  
	
  SECTION 1.04.
  Exchange Rates 

  	
  27

  
	
   

  	
   

  
	
  ARTICLE II

  
	
   

  
	
  The Credits

  
	
   

  	
   

  
	
  SECTION 2.01. Commitments

  	
  28

  
	
  SECTION 2.02. Loans

  	
  28

  
	
  SECTION 2.03. Borrowing Procedure

  	
  30

  
	
  SECTION 2.04. Evidence of Debt; Repayment of
  Loans

  	
  31

  
	
  SECTION 2.05. Fees

  	
  31

  
	
  SECTION 2.06. Interest on Loans

  	
  33

  
	
  SECTION 2.07. Default Interest

  	
  33

  
	
  SECTION 2.08. Alternate Rate of Interest

  	
  33

  
	
  SECTION 2.09. Termination and Reduction of Commitments

  	
  34

  
	
  SECTION 2.10. Conversion and Continuation of
  Borrowings

  	
  34

  
	
  SECTION 2.11. Repayment of Term Borrowings

  	
  36

  
	
  SECTION 2.12. Optional Prepayment

  	
  36

  
	
  SECTION 2.13. Mandatory Prepayments

  	
  37

  
	
  SECTION 2.14. Reserve Requirements; Change in
  Circumstances

  	
  38

  
	
  SECTION 2.15. Change in Legality

  	
  40

  
	
  SECTION 2.16. Indemnity

  	
  41

  
	
  SECTION 2.17. Pro Rata Treatment

  	
  41

  
	
  SECTION 2.18. Sharing of Setoffs

  	
  41

  
	
  SECTION 2.19. Payments

  	
  42

  
	
  SECTION 2.20. Taxes

  	
  43

  
	
  SECTION 2.21. Assignment of Commitments Under Certain
  Circumstances; Duty to Mitigate

  	
  45

  
	
  SECTION 2.22.
  Letters of Credit

  	
  47

  

 

 

Table of Contents

(continued)

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE III

  
	
   

  
	
  Representations and Warranties

  
	
   

  	
   

  
	
  SECTION 3.01. Organization; Powers

  	
  52

  
	
  SECTION 3.02. Authorization

  	
  52

  
	
  SECTION 3.03. Enforceability

  	
  52

  
	
  SECTION 3.04. Governmental Approvals

  	
  52

  
	
  SECTION 3.05. Financial Statements

  	
  53

  
	
  SECTION 3.06. No Material Adverse Change

  	
  53

  
	
  SECTION 3.07. Title to Properties; Possession Under
  Leases; Intellectual Property

  	
  53

  
	
  SECTION 3.08. Subsidiaries

  	
  54

  
	
  SECTION 3.09. Litigation; Compliance with Laws

  	
  55

  
	
  SECTION 3.10. Agreements

  	
  56

  
	
  SECTION 3.11. Federal Reserve Regulations

  	
  56

  
	
  SECTION 3.12. Investment Company Act

  	
  56

  
	
  SECTION 3.13. Use of Proceeds

  	
  57

  
	
  SECTION 3.14. Tax Returns

  	
  57

  
	
  SECTION 3.15. No Material Misstatements

  	
  57

  
	
  SECTION 3.16. Employee Benefit Plans

  	
  57

  
	
  SECTION 3.17. Environmental Matters

  	
  58

  
	
  SECTION 3.18. Insurance

  	
  58

  
	
  SECTION 3.19. Security Documents

  	
  58

  
	
  SECTION 3.20. Location of Real Property and Leased
  Premises

  	
  59

  
	
  SECTION 3.21. Labor Matters

  	
  59

  
	
  SECTION 3.22. Solvency

  	
  60

  
	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  
	
  Conditions of Lending

  
	
   

  	
   

  
	
  SECTION 4.01. All Credit Events

  	
  60

  
	
  SECTION 4.02. First Credit Event

  	
  61

  
	
   

  	
   

  
	
  ARTICLE V

  
	
   

  
	
  Affirmative Covenants

  
	
   

  	
   

  
	
  SECTION 5.01. Existence; Compliance with Laws;
  Businesses and Properties

  	
  64

  
	
  SECTION 5.02.
  Insurance

  	
  64

  

 

 

Table of Contents

(continued)

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  SECTION 5.03. Obligations and Taxes.

  	
  65

  
	
  SECTION 5.04. Financial Statements, Reports, etc.

  	
  65

  
	
  SECTION 5.05. Litigation and Other Notices

  	
  67

  
	
  SECTION 5.06. Information Regarding Collateral

  	
  68

  
	
  SECTION 5.07. Maintaining Records; Access to
  Properties and Inspections; Maintenance of Ratings

  	
  68

  
	
  SECTION 5.08. Use of Proceeds

  	
  69

  
	
  SECTION 5.09. Employee Benefits

  	
  69

  
	
  SECTION 5.10. Compliance with Environmental Laws

  	
  69

  
	
  SECTION 5.11. Preparation of Environmental Reports

  	
  69

  
	
  SECTION 5.12. Further Assurances

  	
  70

  
	
  SECTION 5.13. Interest Rate Protection

  	
  71

  
	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  
	
  Negative Covenants

  
	
   

  	
   

  
	
  SECTION 6.01. Indebtedness

  	
  71

  
	
  SECTION 6.02. Liens

  	
  73

  
	
  SECTION 6.03. Sale and Lease-Back Transactions

  	
  76

  
	
  SECTION 6.04. Investments, Loans and Advances

  	
  76

  
	
  SECTION 6.05. Mergers, Consolidations, Sales of Assets
  and Acquisitions

  	
  79

  
	
  SECTION 6.06. Restricted Payments; Restrictive
  Agreements

  	
  80

  
	
  SECTION 6.07. Transactions with Affiliates

  	
  82

  
	
  SECTION 6.08. Business of Holdings, Borrower and
  Subsidiaries

  	
  82

  
	
  SECTION 6.09. Other Indebtedness and Agreements

  	
  83

  
	
  SECTION 6.10. Interest Coverage Ratio

  	
  83

  
	
  SECTION 6.11. Maximum Leverage Ratio

  	
  83

  
	
  SECTION 6.12. Capital Expenditures

  	
  83

  
	
  SECTION 6.13. New Drug Licensing Costs

  	
  84

  
	
  SECTION 6.14. Certain Equity Interests

  	
  84

  
	
  SECTION 6.15.
  Fiscal Year

  	
  84

  

 

 

Table of Contents

(continued)

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  
	
  Events of Default

  
	
   

  
	
  ARTICLE VIII

  
	
   

  
	
  The Administrative Agent and the Collateral Agent

  
	
   

  
	
  ARTICLE IX

  
	
   

  
	
  Miscellaneous

  
	
   

  	
   

  
	
  SECTION 9.01. Notices; Electronic Communications

  	
  90

  
	
  SECTION 9.02. Survival of Agreement

  	
  92

  
	
  SECTION 9.03. Binding Effect

  	
  93

  
	
  SECTION 9.04. Successors and Assigns

  	
  93

  
	
  SECTION 9.05. Expenses; Indemnity

  	
  98

  
	
  SECTION 9.06. Right of Setoff

  	
  99

  
	
  SECTION 9.07. Applicable Law

  	
  100

  
	
  SECTION 9.08. Waivers; Amendment

  	
  100

  
	
  SECTION 9.09. Interest Rate Limitation

  	
  101

  
	
  SECTION 9.10. Entire Agreement

  	
  102

  
	
  SECTION 9.11. WAIVER OF JURY TRIAL

  	
  102

  
	
  SECTION 9.12. Severability

  	
  102

  
	
  SECTION 9.13. Counterparts

  	
  103

  
	
  SECTION 9.14. Headings

  	
  103

  
	
  SECTION 9.15. Jurisdiction; Consent to Service of
  Process

  	
  103

  
	
  SECTION 9.16. Confidentiality

  	
  104

  
	
  SECTION 9.17. Release of Liens and Guarantees of
  Subsidiaries

  	
  104

  
	
  SECTION 9.18. USA PATRIOT Act Notice

  	
  105

  
	
  SECTION 9.19. Lender Action

  	
  105

  
	
  SECTION 9.20. Judgment Currency

  	
  105

  
	
  SECTION 9.21.
  European Monetary Union

  	
  106

  

 

 

SCHEDULES

 

	
  Schedule
  1.01(a)

  	
  -

  	
  Subsidiary
  Guarantors

  
	
  Schedule
  1.01(b)

  	
  -

  	
  Mortgaged
  Properties

  
	
  Schedule
  1.01(c)  

  	
  -

  	
  Existing
  Letters of Credit

  
	
  Schedule
  2.01

  	
  -

  	
  Lenders
  and Commitments

  
	
  Schedule
  3.07(a)

  	
  -

  	
  Certain
  Matters Affecting Real Property

  
	
  Schedule
  3.07(d)

  	
  -

  	
  Certain
  Matters Affecting Intellectual Property

  
	
  Schedule
  3.08

  	
  -

  	
  Subsidiaries

  
	
  Schedule
  3.09(a)

  	
  -

  	
  Litigation

  
	
  Schedule
  3.09(b)

  	
  -

  	
  Regulatory
  Disclosures

  
	
  Schedule
  3.09(d)

  	
  -

  	
  FDA
  Notices

  
	
  Schedule
  3.14

  	
  -

  	
  Certain
  Tax Matters

  
	
  Schedule
  3.17

  	
  -

  	
  Environmental
  Matters

  
	
  Schedule
  3.18

  	
  -

  	
  Insurance

  
	
  Schedule
  3.19(a)

  	
  -

  	
  UCC
  Filing Offices

  
	
  Schedule
  3.19(c)

  	
  -

  	
  Mortgage
  Filing Offices

  
	
  Schedule
  3.20(a)

  	
  -

  	
  Owned
  Real Property

  
	
  Schedule
  3.20(b)

  	
  -

  	
  Leased
  Real Property

  
	
  Schedule
  5.12

  	
  -

  	
  Post-Closing
  Collateral Actions

  
	
  Schedule
  6.01

  	
  -

  	
  Existing
  Indebtedness

  
	
  Schedule
  6.02

  	
  -

  	
  Existing
  Liens

  
	
  Schedule
  6.07

  	
  -

  	
  Transactions
  with Certain Affiliates

  

 

EXHIBITS

 

	
  Exhibit A

  	
  -

  	
  Form of
  Administrative Questionnaire

  
	
  Exhibit B

  	
  -

  	
  Form of
  Assignment and Acceptance

  
	
  Exhibit C

  	
  -

  	
  Form of
  Borrowing Request

  
	
  Exhibit D

  	
  -

  	
  Form of
  Guarantee and Collateral Agreement

  
	
  Exhibit E-1

  	
  -

  	
  Form of
  Opinion of Fried, Frank, Harris, Shriver & Jacobson LLP

  
	
  Exhibit E-2

  	
  -

  	
  Form of
  Opinion of Jones, Walker, Waechter, Poitevent, Carrère & Denègre,
  L.L.P.

  
	
  Exhibit F-1

  	
  -

  	
  Form of
  Revolving Promissory Note

  
	
  Exhibit F-2

  	
  -

  	
  Form of
  Term Promissory Note

  
	
  Exhibit G

  	
  -

  	
  Form of
  Certificate Re: Non-Bank Status

  
	
  Exhibit H

  	
  -

  	
  Form of
  Mortgage

  

 

 

CREDIT AGREEMENT dated as of
May 14, 2010, among IKARIA, INC., a Delaware corporation (“Holdings”), IKARIA ACQUISITION INC.,
a Delaware corporation (the “Borrower”), the Lenders (as defined in Article I),
and CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as administrative agent (in such
capacity, the “Administrative
Agent”) and as
collateral agent (in such capacity, the “Collateral
Agent”) for the
Lenders.

 

The Borrower has requested
the Lenders to extend credit in the form of (a) Term Loans (such term and
each other capitalized term used but not defined in this introductory statement
having the meaning given it in Article I) on the Closing Date, in an
aggregate principal amount of $250,000,000, and (b) Revolving Loans at any
time and from time to time prior to the Revolving Credit Maturity Date, in an
aggregate principal amount at any time outstanding not in excess of
$40,000,000.  The Borrower has requested
the Issuing Bank to issue Letters of Credit, in an aggregate face amount at any
time outstanding not in excess of $20,000,000 (or the Alternative Currency
Equivalent thereof), for general corporate purposes of the Borrower and the
Subsidiaries. The proceeds of the Term Loans made on the Closing Date are to be
used by the Borrower, together with cash on hand at the Borrower, solely (i) to
finance the Existing Debt Refinancing, (ii) to finance the Dividend and (iii) to
pay related fees and expenses incurred in connection with the foregoing,
including any swap termination costs. The proceeds of the Revolving Loans are
to be used solely for general corporate purposes of the Borrower and the
Subsidiaries.

 

The Lenders are willing to
extend such credit to the Borrower, and the Issuing Bank is willing to issue
Letters of Credit for the account of the Borrower, in each case on the terms
and subject to the conditions set forth herein. 
Accordingly, the parties hereto agree as follows:

 

ARTICLE I

 

Definitions

 

SECTION 1.01.  Defined Terms.  As used in this Agreement, the following
terms shall have the meanings specified below:

 

“ABR”,
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate
determined by reference to the Alternate Base Rate.

 

“Adjusted
LIBO Rate” shall mean, with respect to any Eurodollar Borrowing
for any Interest Period, an interest rate per annum equal to the product of (a) the
LIBO Rate in effect for such Interest Period and (b) Statutory Reserves; provided that the Adjusted LIBO Rate shall at no time be
less than 2.00% per annum.

 

“Administrative
Agent Fees” shall have the meaning assigned to such term in Section 2.05(b).

 

1

 

“Administrative
Questionnaire” shall mean an Administrative Questionnaire in the
form of Exhibit A, or such other form as may be supplied from time to time
by the Administrative Agent.

 

“Affiliate”
shall mean, when used with respect to a specified person, another person that
directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the person specified; provided, however, that, for purposes of Section 6.07,
the term “Affiliate” shall also include any person that directly or indirectly
owns 10% or more of the shares representing ordinary voting power represented
by all of the issued and outstanding Equity Interests of the person specified
or that is an officer or director of the person specified.

 

“Aggregate
Revolving Credit Exposure” shall mean the aggregate amount of the
Lenders’ Revolving Credit Exposures.

 

“Alternate
Base Rate” shall mean, for any day, a rate per annum equal to
the greatest of (a) the Prime Rate in effect on such day, (b) the
Federal Funds Effective Rate in effect on such day plus 1⁄2 of 1% and (c) the
Adjusted LIBO Rate on such day for a three-month Interest Period commencing on
such day plus 1%; provided that, for the avoidance
of doubt, the Adjusted LIBO Rate for any day shall be based on the rate
determined on such day at approximately 11 a.m. (London time) by reference
to the British Bankers’ Association Interest Settlement Rates for deposits in
dollars (as set forth by any service selected by the Administrative Agent that
has been nominated by the British Bankers’ Association as an authorized vendor
for the purpose of displaying such rates). 
If the Administrative Agent shall have determined (which determination
shall be conclusive absent manifest error) that it is unable to ascertain the
Federal Funds Effective Rate or the Adjusted LIBO Rate for any reason,
including the inability or failure of the Administrative Agent to obtain
sufficient quotations in accordance with the terms of the definition of Federal
Funds Effective Rate, the Alternate Base Rate shall be determined without
regard to clause (b) or (c), as applicable, of the preceding sentence
until the circumstances giving rise to such inability no longer exist.  Any change in the Alternate Base Rate due to
a change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted
LIBO Rate shall be effective on the effective date of such change in the Prime
Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate, as the case
may be.

 

“Alternative
Currency”  shall mean,
with respect to any Letter of Credit, Sterling, euro and any other freely
transferable currency (other than dollars) in which such Letter of Credit shall
be denominated, as requested by the Borrower and agreed to by the Issuing Bank
and the Administrative Agent.

 

“Alternative
Currency Equivalent” 
shall mean, on any date of determination, with respect to an amount in
dollars, the equivalent thereof in the relevant Alternative Currency,
determined by the Administrative Agent using the Exchange Rate with respect to
such Alternative Currency then in effect pursuant to Section 1.04.

 

“Alternative
Currency Letter of Credit” 
shall mean any Letter of Credit denominated in an Alternative Currency.

 

2

 

“Applicable
Percentage” shall mean, for any day, (a) with respect to
any Eurodollar Term Loan, 5.00%, (b) with respect to any ABR Term Loan,
4.00%, (c) with respect to any Eurodollar Revolving Loan, 4.25%, and (d) with
respect to any ABR Revolving Loan, 3.25%.

 

“Asset
Sale” shall mean the sale, transfer or other disposition (by way
of merger, casualty, condemnation or otherwise) by Holdings, the Borrower or
any of the Subsidiaries to any person other than Holdings, the Borrower or any
Subsidiary Guarantor of (a) any Equity Interests of any of the
Subsidiaries (other than directors’ qualifying shares) or (b) any other
assets of Holdings, the Borrower or any of the Subsidiaries (other than (i) inventory,
damaged, obsolete or worn out assets, equipment no longer used in the business
of the Borrower or any of the Subsidiaries, scrap, Permitted Investments and
other assets, in each case sold, transferred or otherwise disposed of in the
ordinary course of business, (ii) intellectual property licensed on a
non-exclusive basis in the ordinary course of business, (iii) dispositions
between or among Foreign Subsidiaries, (iv) the sale or discount without
recourse of accounts receivable in connection with the compromise thereof or
the assignment of past due accounts receivable for collection and (v) any
sale, transfer or other disposition or series of related sales, transfers or
other dispositions having a value not in excess of $500,000).

 

“Assignment
and Acceptance” shall mean an assignment and acceptance entered
into by a Lender and an assignee, and accepted by the Administrative Agent, in
the form of Exhibit B or such other form as shall be approved by the
Administrative Agent and the Borrower (which approval shall not be unreasonably
withheld or delayed).

 

“Board”
shall mean the Board of Governors of the Federal Reserve System of the United
States of America.

 

“Borrower’s
Portion of Excess Cash Flow” for any fiscal year commencing on
or after January 1, 2011 shall mean 25% of Excess Cash Flow for the
preceding full fiscal year of the Borrower; provided that
such percentage shall be increased to 50% if the Leverage Ratio as of the end
of such fiscal year was equal to or less than 2.00 to 1.00.

 

“Borrowing”
shall mean Loans of the same Class and Type made, converted or continued
on the same date and, in the case of Eurodollar Loans, as to which a single
Interest Period is in effect.

 

“Borrowing
Request” shall mean a request by the Borrower in accordance with
the terms of Section 2.03 and substantially in the form of Exhibit C,
or such other form as shall be approved by the Administrative Agent.

 

“Business
Day” shall mean any day other than a Saturday, Sunday or day on
which banks in New York City are authorized or required by law to close; provided, however, that
when used in connection with a Eurodollar Loan, the term “Business
Day” shall also exclude any day on which banks are not open for
dealings in dollar deposits in the London interbank market.

 

3

 

“Calculation
Date”  shall mean (a) the
date of each Borrowing Request for a Revolving Loan, if any Alternative
Currency Letter of Credit is outstanding on such date, (b) the last
Business Day of each month, if any Alternative Currency Letter of Credit is
outstanding on such day, (c) the date of issuance, extension, renewal or
amendment of any Alternative Currency Letter of Credit and (d) any other
day selected by the Administrative Agent if any Alternative Currency Letter of
Credit is outstanding on such day.

 

“Capital
Expenditures” shall mean, for any period, the sum, without
duplication, of the additions to property, plant and equipment of Holdings and
its consolidated Subsidiaries that are (or should be) set forth in a
consolidated statement of cash flows of Holdings for such period prepared in
accordance with GAAP but excluding any such expenditure (i) made to
restore, replace or rebuild property to the condition of such property
immediately prior to any damage, loss, destruction or condemnation of such
property, to the extent such expenditure is made with insurance proceeds,
condemnation awards or damage recovery proceeds relating to any such damage,
loss, destruction or condemnation, (ii) that constitutes the consideration
paid (and transaction expenses incurred) in connection with a Permitted
Acquisition, (iii) that constitutes the permitted reinvestment of Net Cash
Proceeds of Asset Sales, (iv) that constitutes the purchase price of
equipment that is purchased simultaneously with the trade-in of existing
equipment to the extent of the credit granted by the seller of such equipment
for the equipment being traded at such time or (v) that constitutes a
Capitalized Drug Licensing Cost.

 

“Capitalized
Drug Licensing Costs” 
shall mean, for any period, the costs or expenses incurred by Holdings
or the Subsidiaries during such period, determined on a consolidated basis in
accordance with GAAP, in respect of rights to FDA-approved drugs or devices (or
active pharmaceutical ingredients, components or related elements) that are
licensed or otherwise obtained by Holdings or the Subsidiaries, to the extent
such costs or expenses are capitalized on the consolidated balance sheet of
Holdings and the Subsidiaries.

 

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

 

“cGMPs”
shall mean the regulatory requirements for current good manufacturing practices
promulgated by the FDA under the Food and Drug Act, including at 21 C.F.R.
parts 210, 211 and 820. and under the
Public Health Service Act, Biological Products, 21 C.F.R. parts 600 et seq., as the same may be amended from time to time.

 

A “Change
in Control” shall be deemed to have occurred if (a) prior
to a Qualified Public Offering, the Investors shall fail to own, directly or
indirectly, beneficially and of record, shares representing at least 51% of
each of the aggregate ordinary voting power and aggregate equity value
represented by the issued and 

 

4

 

outstanding
Equity Interests of Holdings; (b) after a Qualified Public Offering, any “person”
or “group” (within the meaning of Rule 13d-5 of the Securities Exchange
Act of 1934 as in effect on the date hereof), other than the Investors shall
own, directly or indirectly, beneficially or of record, shares representing
more of the aggregate ordinary voting power represented by the issued and
outstanding capital stock of Holdings than the Investors own, directly or
indirectly, beneficially or of record, of the shares representing ordinary
voting power represented by the issued and outstanding capital stock of
Holdings; (c) a majority of the seats (other than vacant seats) on the
board of directors of Holdings shall at any time be occupied by persons who
were not (i) nominated by the board of directors of Holdings or (ii) appointed
by directors so nominated or (iii) appointed pursuant to the exercise of
rights under the Investor Stockholders Agreement (or similar stockholder
agreement) and the certificate of incorporation of Holdings; (d) any
change in control (or similar event, however denominated) with respect to
Holdings shall occur under and as defined in any indenture or agreement in
respect of Material Indebtedness to which Holdings or the Borrower is a party;
or (e) Holdings shall cease to directly own, beneficially and of record,
100% of the issued and outstanding Equity Interests of the Borrower.

 

“Change
in Law” shall mean (a) the adoption of any law, rule or
regulation after the Closing Date, (b) any change in any law, rule or
regulation or in the interpretation or application thereof by any Governmental
Authority after the Closing Date or (c) compliance by any Lender or the
Issuing Bank (or, for purposes of Section 2.14, by any lending office of
such Lender or by such Lender’s or Issuing Bank’s holding company, if any) with
any request, guideline or directive (whether or not having the force of law) of
any Governmental Authority made or issued after the Closing Date.

 

“Class”,
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Revolving Loans or Term Loans and,
when used in reference to any Commitment, refers to whether such Commitment is
a Revolving Credit Commitment or Term Loan Commitment.

 

“Closing
Date” shall mean May 14, 2010.

 

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

 

“Collateral”
shall mean all the “Collateral” as defined in any Security Document and shall
also include the Mortgaged Properties.

 

“Commitment”
shall mean, with respect to any Lender, such Lender’s Revolving Credit
Commitment and Term Loan Commitment.

 

“Confidential
Information Memorandum” shall mean the Confidential Information
Memorandum of the Borrower dated April 2010.

 

“Consolidated
EBITDA” shall mean, for any period, Consolidated Net Income  for such period plus (a) without
duplication and to the extent deducted in determining such Consolidated Net
Income, the sum of (i) consolidated interest expense for such 

 

5

 

period,
(ii) consolidated income tax expense for such period, (iii) all
amounts attributable to depreciation and amortization for such period
(including accelerated depreciation and amortization from the write-off or
write-down of tangible or intangible assets (other than the write-down of
current assets, except write-downs or reserves for uncollectible accounts
receivable), including capitalized research and development, software and
organizational costs), (iv) non-recurring cash expenses in connection with
Permitted Acquisitions or Capitalized Drug Licensing Costs and other related
restructuring charges, including financing fees, merger and acquisition or
analogous fees, accounting due diligence and legal fees and expenses in
connection therewith, in an aggregate amount of up to the lesser of (A) 7.5%
of the total consideration paid by Holdings and its subsidiaries for Permitted
Acquisitions or Capitalized Drug Licensing Costs during such period and (B) $3,000,000
in such four-quarter period, (v) non-recurring cash expenses of up to
$3,000,000 in such four fiscal quarter period, (vi) any non-cash charges
(other than the write-down of current assets) for such period (including
non-cash expenses with respect to (x) compensation, including stock
options, stock appreciation rights and similar arrangements and any repricing,
amendment, modification or substitution of any of the foregoing, and (y) restructuring
charges), (vii) extraordinary losses or losses attributable to discontinued
operations or other sales or dispositions of assets out of the ordinary course
of business, (viii) Transaction Costs paid during the 2010 fiscal year, (ix) any
breakage or similar costs incurred in connection with the termination of any
interest rate Hedging Agreement associated with the Existing Debt Refinancing
or the prepayment of Term Loans, (x) New Drug Licensing Costs and (xi)
transaction related fees and expenses in connection with a Qualified Public
Offering and minus (b) without duplication (i) to the extent not
deducted in determining such Consolidated Net Income, all cash payments made
during such period on account of reserves (other than reserves for
uncollectible accounts receivable), restructuring charges (other than
restructuring charges in amounts specified in clause (a)(iv) above) and
other non-cash charges added to Consolidated Net Income pursuant to clause (a)(vi) above
in a previous period, (ii)  to the extent included in determining such
Consolidated Net Income, all non-cash items of income for such period (other
than deferred revenue), all determined on a consolidated basis in accordance
with GAAP and (iii) extraordinary gains or any gains attributable to
discontinued operations or other sales or dispositions of assets out of the
ordinary course of business.  Solely for
purposes of determining the Leverage Ratio at any time, Consolidated EBITDA
shall be determined on a pro forma basis (in all material respects in
accordance with Regulation S-X under the Securities Act of 1933 or as approved
by the Administration Agent and excluding the effects of purchase accounting)
to reflect, as of the first day of any applicable period, any Permitted
Acquisition or Significant Asset Sale closed during such period.  In addition, solely for purposes of measuring
compliance by the Borrower with the financial covenant set forth in
Sections 6.10 and 6.11, the net cash proceeds received by the Borrower
during any fiscal quarter after the Closing Date (or within 10 Business
Days after the day on which financial statements are required to be delivered
with respect to such fiscal quarter) from any issuance by Holdings of Permitted
Cure Securities shall, at the request of the Borrower, be included as “Consolidated
EBITDA” at the end of such fiscal quarter and applicable subsequent periods
that include such fiscal quarter; provided that (a) the
amount so included in any fiscal quarter shall be no greater than the amount
required to cause the Borrower to be in

 

6

 

compliance
with each of such financial covenants as at the end of such fiscal quarter, (b) there
shall be no more than two issuances of Permitted Cure Securities in any
four-fiscal quarter period and no more than three issuances of Permitted Cure
Securities over the life of the Credit Facilities and (c) Consolidated
EBITDA shall not be increased by the issuance of Permitted Cure Securities
other than for purposes of measuring compliance by the Borrower with the
financial covenants set forth in Sections 6.10 and 6.11.

 

“Consolidated
Interest Expense” shall mean, for any period, the cash interest
expense after giving effect to any net payments made or received by Holdings or
any Subsidiary with respect to interest rate Hedging Agreements of Holdings and
the Subsidiaries for such period, determined on a consolidated basis in
accordance with GAAP.

 

“Consolidated
Net Income” shall mean, for any period, the net income or loss
of Holdings and the Subsidiaries for such period determined on a consolidated
basis in accordance with GAAP; provided that
there shall be excluded (a) the net income of any Subsidiary to the extent
that the declaration or payment of dividends or similar distributions by the
Subsidiary of that income is not at the time permitted by operation of the
terms of its charter or any agreement, instrument, judgment, decree, statute, rule or
governmental regulation applicable to such Subsidiary and (b) the net
income or loss of any person accrued prior to the date it becomes a Subsidiary
or is merged into or consolidated with Holdings or any Subsidiary or the date
that such person’s assets are acquired by Holdings or any Subsidiary; provided further that the net income of any person in which
any other person (other than Holdings or a wholly owned Subsidiary or any
director or foreign national holding qualifying shares in accordance with
applicable law) has a joint interest shall be included in Consolidated Net
Income only to the extent of the percentage interest of such person owned by
Holdings and the Subsidiaries and (c) any income or loss attributable to
the early extinguishment of Indebtedness.

 

“Control”
shall mean the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a person, whether through
the ownership of voting securities, by contract or otherwise, and the terms “Controlling” and “Controlled” shall have meanings
correlative thereto.

 

“Credit
Event” shall have the meaning assigned to such term in Section 4.01.

 

“Credit
Facilities” shall mean the revolving credit, letter of credit
and term loan facilities provided for by this Agreement.

 

“Current
Assets” shall mean, at any time, the consolidated current assets
(other than cash, Permitted Investments, Taxes and deferred Taxes) of Holdings
and the Subsidiaries at such time.

 

“Current
Liabilities” shall mean, at any time, the consolidated current
liabilities of Holdings and the Subsidiaries at such time, but excluding,
without duplication, (a) the current portion of any long-term Indebtedness,
(b) outstanding Revolving Loans, (c) Taxes and deferred Taxes and (d) all
accrued interest expense.

 

7

 

“Default”
shall mean any event or condition which upon notice, lapse of time or both
would constitute an Event of Default.

 

“Defaulting Lender”
shall mean any Revolving Credit Lender as determined by the Administrative
Agent, that has (a) failed to fund any portion of its Loans or
participations in Letters of Credit within three Business Days of the date
required to be funded by it hereunder, (b) notified the Borrower, the
Administrative Agent, the Issuing Bank or any Lender in writing that it does
not intend to comply with any of its funding obligations under this Agreement
or has made a public statement to the effect that it does not intend to comply
with its funding obligations under this Agreement or under other agreements in
which it commits to extend credit, (c) failed, within three Business Days
after request by the Administrative Agent, to confirm that it will comply with
the terms of this Agreement relating to its obligations to fund prospective
Loans and participations in then outstanding Letters of Credit, (d) otherwise
failed to pay over to the Administrative Agent or any other Lender any other
amount required to be paid by it hereunder within three Business Days of the
date when due, unless the subject of a good faith dispute, or (e) (i) become
or is insolvent or has a parent company that has become or is insolvent or (ii) become
the subject of a bankruptcy or insolvency proceeding, or has had a receiver,
conservator, trustee, custodian or similar entity appointed for it, or has
taken any action in furtherance of, or indicating its consent to, approval of
or acquiescence in any such proceeding or appointment or has a parent company
that has become the subject of a bankruptcy or insolvency proceeding, or has
had a receiver, conservator, trustee, custodian or similar entity appointed for
it, or has taken any action in furtherance of, or indicating its consent to,
approval of or acquiescence in any such proceeding or appointment.

 

“Dividend”  shall mean the $130,000,000 dividend paid by
the Borrower to Holdings on the Closing Date, and by Holdings to its existing
equity holders on or as soon as practicable after June 1, 2010.

 

“Dollar
Equivalent”  shall mean,
with respect to an amount of any Alternative Currency on any date, the
equivalent thereof in dollars, determined by the Administrative Agent pursuant
to Section 1.04 using the applicable Exchange Rate with respect to such
Alternate Currency then in effect.

 

“dollars”
or “$” shall mean lawful money of the
United States of America.

 

“Domestic
Subsidiaries” shall mean all Subsidiaries incorporated or
organized under the laws of the United States of America, any State thereof or
the District of Columbia.

 

“Disqualified
Stock” shall mean any Equity Interest which, by its terms (or by
the terms of any security or instrument into which it is convertible or for
which it is exchangeable), or upon the happening of any event, (a) matures
or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise, or is redeemable at the option of the holder thereof, in whole or in
part, or requires the payment of any cash dividend or any other scheduled
payment constituting a return of capital, in each case at 

 

8

 

any
time on or prior to the first anniversary of the Term Loan Maturity Date or (b) is
convertible into or exchangeable (unless at the sole option of the issuer
thereof) for (i) Indebtedness or (ii) any Equity Interest referred to
in clause (a) above, in each case at any time prior to the first
anniversary of the Term Loan Maturity Date.

 

“Eligible
Assignee” shall mean any commercial bank, insurance company,
investment or mutual fund or other entity (but not any natural person) that is
an “accredited investor” (as defined in Regulation D under the Securities Act
of 1933, as amended) that extends credit or invests in bank loans as one of its
businesses; provided that neither the Borrower nor
any of its Affiliates shall be an Eligible Assignee.

 

“EMU
Legislation”  shall mean
the legislative measures of the European Union or any other country where the
euro is used for the introduction of, changeover to or operation of the euro in
one or more member states.

 

“Environmental
Laws” shall mean all former, current and future Federal, state,
local and foreign laws (including common law), treaties, regulations, rules,
ordinances, codes, decrees, judgments, directives, orders (including consent
orders), and agreements with any Governmental Authority, in each case relating
to protection of the environment, natural resources, human health and safety or
the presence, Release of, or exposure to, Hazardous Materials, or the
generation, manufacture, processing, distribution, use, treatment, storage,
transport, recycling or handling of, or the arrangement for such activities
with respect to, Hazardous Materials.

 

“Environmental
Liability” shall mean all liabilities, obligations, damages,
losses, claims, actions, suits, judgments, orders, fines, penalties, fees,
expenses and costs (including administrative oversight costs, natural resource
damages and remediation costs), whether contingent or otherwise, arising out of
or relating to (a) compliance or non-compliance with any Environmental
Law, (b) the generation, use, handling, transportation, storage, treatment
or disposal of any Hazardous Materials, (c) exposure to any Hazardous
Materials, (d) the Release of any Hazardous Materials or (e) any
contract, agreement or other consensual arrangement pursuant to which liability
is assumed or imposed with respect to any of the foregoing.

 

“Equity
Interests” shall mean shares of capital stock, partnership
interests, membership interests in a limited liability company, beneficial
interests in a trust or other equity interests in any person, and any option,
warrant or other right (other than Indebtedness that is convertible into, or
exchangeable for, any such equity interests) entitling the holder thereof to
purchase or otherwise acquire any such equity interest.

 

“Equity Issuance” shall mean any
issuance or sale by Holdings or any Subsidiary of any Equity Interests of
Holdings or any Subsidiary, as applicable, except in each case for (a) any
issuance of Equity Interests by Holdings as consideration for, or the Net Cash
Proceeds of which are contributed as common equity to the Borrower to fund all
or a portion of the consideration with respect to, Capitalized Drug Licensing
Costs or a Permitted Acquisition (and fees and expenses relating to the
foregoing), (b) any issuance or sale to any Investor or an Affiliate
thereof (other than any such person acting in the 

 

9

 

capacity of an underwriter or placement agent with regard to such
Equity Issuance), Holdings or any Subsidiary, (c) any issuance of
directors’ or foreign nationals’ qualifying shares and (d) sales or
issuances of common or ordinary shares of Holdings to management, employees,
directors or consultants of Holdings or any Subsidiary.

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as the same may
be amended from time to time.

 

“ERISA  Affiliate” shall mean any
trade or business (whether or not incorporated) that, together with the
Borrower, is treated as a single employer under Section 414(b) or (c) of
the Code, or solely for purposes of Section 302 of ERISA and Section 412
of the Code, is treated as a single employer under Section 414 of the
Code.

 

“ERISA
Event” shall mean (a) any “reportable event”, as defined in
Section 4043 of ERISA or the regulations issued thereunder, with respect
to a Plan (other than an event for which the 30-day notice period is waived), (b) any
failure by any Plan to satisfy the minimum funding standard (within the meaning
of Section 412 of the Code or Section 302 of ERISA) applicable to
such Plan, in each case whether or not waived, (c) the filing pursuant to Section 412(c) of
the Code or Section 302(c) of ERISA, of an application for a waiver
of the minimum funding standard with respect to any Plan, (d) a
determination that any Plan is, or is expected to be, in “at-risk” status (as
determined in Section 303(i)(4) of ERISA or Section 430(i)(4) of
the Code), (e) the incurrence by the Borrower or any of its ERISA
Affiliates of any liability under Title IV of ERISA with respect to the
termination of any Plan by the PBGC or the withdrawal or partial withdrawal of
the Borrower or any of its ERISA Affiliates from any Plan or Multiemployer Plan,
(f) the receipt by the Borrower or any of its ERISA Affiliates from the
PBGC or a plan administrator of any notice relating to the intention to
terminate any Plan or Plans or to appoint a trustee to administer any Plan, (g) the
receipt by the Borrower or any of its ERISA Affiliates of any notice, or the
receipt by any Multiemployer Plan from the Borrower or any of its ERISA
Affiliates of any notice, concerning the imposition of Withdrawal Liability or
a determination that a Multiemployer Plan is, or is expected to be, insolvent
or in reorganization, within the meaning of Title IV of ERISA or in
endangered or critical status, within the meaning of Section 305 of
ERISA), (h) the occurrence of a “prohibited transaction” with respect to
which the Borrower or any of the Subsidiaries is a “disqualified person”
(within the meaning of Section 4975 of the Code) or with respect to which
the Borrower or any such Subsidiary could otherwise be liable or (i) any
Foreign Benefit Event.

 

“euro”  shall mean the single currency of the
European Union as constituted by the Treaty on European Union and as referred
to in the EMU Legislation.

 

“Eurodollar”,
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate
determined by reference to the Adjusted LIBO Rate.

 

“Event
of Default” shall have the meaning assigned to such term in Article VII.

 

10

 

“Excess
Cash Flow” shall mean, for any fiscal year of Holdings,
commencing with the fiscal year ending December 31, 2010, the excess of (a) the
sum, without duplication, of (i) Consolidated EBITDA for such fiscal year
and (ii) reductions to noncash working capital of Holdings and the
Subsidiaries for such fiscal year (i.e., the decrease, if any, in Current
Assets minus Current Liabilities from the beginning to the end of such fiscal
year) over (b) the sum, without duplication, of (i) the amount of any
Taxes paid in cash by Holdings and the Subsidiaries during such fiscal year, (ii) Consolidated
Interest Expense paid in cash during such fiscal year, (iii) Capital
Expenditures made and Capitalized Drug Licensing Costs paid in cash during such
fiscal year, except to the extent financed with the proceeds of Indebtedness,
equity issuances, casualty proceeds, condemnation proceeds or other proceeds
that would not be included in Consolidated EBITDA, (iv) Transaction Costs
paid in cash during such fiscal year (but only to the extent such costs are
deducted in determining Consolidated Net Income and then added back to
determine Consolidated EBITDA for such fiscal year), (v) cash expenses
added back to Consolidated EBITDA for such fiscal year pursuant to clauses
(a)(iv), (v), (viii), (ix), (x) and (xi) of the definition of “Consolidated
EBITDA”, (vi) permanent repayments of Indebtedness (other than mandatory
prepayments of Loans under Section 2.13 and Voluntary Prepayments) made by
Holdings and the Subsidiaries during such fiscal year, but only to the extent
that such prepayments by their terms cannot be reborrowed or redrawn and do not
occur in connection with a refinancing of all or any portion of such
Indebtedness, (vii) the consideration paid in connection with Permitted
Acquisitions (and transaction related fees and expenses, including financing
fees, merger and acquisition fees, accounting, due diligence and legal fees and
other fees and expenses in connection therewith), in each case paid or made in
cash during such fiscal year, except to the extent financed with the proceeds
of Indebtedness, equity issuances, or other proceeds that would not be included
in Consolidated EBITDA, (viii) the amounts of management stock, stock
appreciation right or similar plan, payments, buy backs or redemptions made in
cash during such fiscal year (to the extent not deducted in determining
Consolidated EBITDA for such fiscal year), and (ix) additions to noncash
working capital of Holdings and the Subsidiaries for such fiscal year (i.e.,
the increase, if any, in Current Assets minus Current Liabilities from the
beginning to the end of such fiscal year).

 

“Exchange
Rate”  shall mean, on any
day with respect to any Alternative Currency, the rate at which such
Alternative Currency may be exchanged into dollars (or, for purposes of the definition
of “Alternative Currency Equivalent” and Section 2.02(f) or any other
provision of this Agreement requiring or permitting the conversion of an
Alternative Currency to dollars, the rate at which dollars may be exchanged
into an Alternative Currency), as set forth at approximately 11:00 a.m.,
New York City time, on such date on the Bloomberg Key Cross Currency Rates Page for
such Alternative Currency.  In the event
that such rate does not appear on any Bloomberg Key Cross Currency Rates Page,
the Exchange Rate shall be determined by reference to such other publicly
available service for displaying exchange rates as selected by the
Administrative Agent, or, at the discretion of the Administrative Agent, such
Exchange Rate shall instead be the arithmetic average of the spot rates of
exchange of the Administrative Agent in the primary market where its foreign
currency exchange operations in respect of such Alternative Currency are then
being conducted, at or about 10:00 a.m., local time, on 

 

11

 

such
date for the purchase of dollars (or such Alternative Currency, as the case may
be) for delivery two Business Days later; provided that
if at the time of any such determination, for any reason, no such spot rate is
being quoted, the Administrative Agent may use any reasonable method it deems
appropriate to determine such rate, and such determination shall be presumed
correct absent manifest error.

 

“Excluded
Taxes” shall mean, with respect to the Administrative Agent, any
Lender, the Issuing Bank or any other recipient of any payment to be made by or
on account of any obligation of the Borrower hereunder, (a) income or
franchise Taxes imposed on (or measured by) its net income by the United States
of America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any
Lender, in which its applicable lending office is located, (b) any branch
profits Taxes imposed by the United States of America or any similar Tax
imposed by any other jurisdiction described in clause (a) above, (c) any
Tax imposed by FATCA, to the extent that such Tax would not have been imposed
but for the failure by the Administrative Agent or any Lender (i) to
comply with the reporting and other requirements under FATCA and/or (ii) to
provide, upon reasonable demand from the Borrower and/or the Administrative
Agent, and at the time or times prescribed by applicable law, any form,
document or certification required under FATCA, which, if provided, would
establish that such payment is exempt from withholding under FATCA and (d) in
the case of a Lender (other than an assignee pursuant to a request by the
Borrower under Section 2.21(a)), any withholding Tax that is imposed on
amounts payable to such Lender at the time such Lender becomes a party to this
Agreement (or designates a New Lending Office) or is attributable to such
Lender’s failure to comply with Sections 2.20(f) or 2.20(g), except to the
extent that such Lender (or its assignor, if any) was entitled, at the time of
designation of a New Lending Office (or assignment), to receive additional
amounts from the Borrower with respect to such withholding Tax pursuant to Section 2.20(a).

 

“Existing
Credit Agreement” shall mean the Credit Agreement dated as of March 28,
2007, as amended, among the Borrower, Holdings, the lenders party thereto and
Credit Suisse AG, as administrative agent and collateral agent.

 

“Existing Debt Refinancing” shall
mean the repayment in full of all amounts due or outstanding under the Existing
Credit Agreement, the termination of the Existing Credit Agreement and the
Commitments thereunder, the termination of all Guarantees thereof and the
release of all security therefor.

 

“Existing
Letter of Credit” shall mean each letter of credit previously
issued for the account of the Borrower or a Subsidiary under the Existing
Credit Agreement that (a) is outstanding on the Closing Date and (b) is
listed on Schedule 1.01(c).

 

“Facility
Fee” shall have the meaning assigned to such term in Section 2.05(a).

 

“FATCA”
means Sections 1471 through 1474 of the Code and any regulations
thereunder or official governmental interpretations thereof.

 

12

 

“FDA”
shall mean the United States Food and Drug Administration, or any successor
Governmental Authority.

 

“FDA
Regulation” shall mean any rule, regulation or administrative
order promulgated or issued by the FDA.

 

“Federal
Funds Effective Rate” shall mean, for any day, the weighted
average of the rates on overnight Federal funds transactions with members of
the Federal Reserve System arranged by Federal funds brokers, as published on
the next succeeding Business Day by the Federal Reserve Bank of New York,
or, if such rate is not so published for any day that is a Business Day, the
average of the quotations for the day for such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing
selected by it.

 

“Fee
Letter”  shall mean the
Engagement Letter dated April 12, 2010, among Holdings, the Borrower and
the Lead Arranger.

 

“Fees”
shall mean the Facility Fees, the Administrative Agent Fees, the L/C
Participation Fees and the Issuing Bank Fees.

 

“Financial
Officer” of any person shall mean the chief financial officer,
principal accounting officer, treasurer or controller of such person.

 

“Food
and Drug Act”  shall mean the
Federal Food, Drug and Cosmetic Act, as amended, 21 U.S.C. § 301 et seq. and any successor act.

 

“Foreign
Benefit Event” shall mean, with respect to any Foreign Pension
Plan, (a) the existence of unfunded liabilities in excess of the amount
permitted under any applicable law, or in excess of the amount that would be
permitted absent a waiver from a Governmental Authority, (b) the failure
to make the required contributions or payments, under any applicable law, on or
before the due date for such contributions or payments, (c) the receipt of
a notice by a Governmental Authority relating to the intention to terminate any
such Foreign Pension Plan or to appoint a trustee or similar official to
administer any such Foreign Pension Plan, or alleging the insolvency of any
such Foreign Pension Plan, (d) the incurrence of any liability in excess
of $2,500,000 by the Borrower or any Subsidiary under applicable law on account
of the complete or partial termination of such Foreign Pension Plan or the
complete or partial withdrawal of any participating employer therein, or (e) the
occurrence of any transaction that is prohibited under any applicable law and
that could reasonably be expected to result in the incurrence of any liability
by the Borrower or any of the Subsidiaries, or the imposition on the Borrower
or any of the Subsidiaries of any fine, excise Tax or penalty resulting from
any noncompliance with any applicable law, in each case in excess of
$2,500,000.

 

“Foreign
Lender” shall mean any Lender that is organized under the laws
of a jurisdiction other than that in which the Borrower is located. For
purposes of this definition, the United States of America, each State thereof
and the District of Columbia shall be deemed to constitute a single
jurisdiction.

 

13

 

“Foreign
Pension Plan” shall mean any benefit plan that under applicable
law is required to be funded through a trust or other funding vehicle other
than a trust or funding vehicle maintained exclusively by a Governmental
Authority.

 

“Foreign
Subsidiary” shall mean any Subsidiary that is not a Domestic
Subsidiary.

 

“GAAP”
shall mean United States generally accepted accounting principles applied on a
consistent basis.

 

“Government”
shall mean the United States government or any department or agency thereof.

 

“Governmental
Authority” shall mean any Federal, state, local or foreign court
or governmental agency, authority, instrumentality or regulatory body.

 

“Granting
Lender” shall have the meaning assigned to such term in Section 9.04(i).

 

“Guarantee”
of or by any person shall mean any obligation, contingent or otherwise, of such
person guaranteeing or having the economic effect of guaranteeing any
Indebtedness or other obligation of any other person (the “primary
obligor”) in any manner, whether directly or indirectly, and
including any obligation of such person, direct or indirect, (a) to
purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness or other obligation or to purchase (or to advance or supply
funds for the purchase of) any security for the payment of such Indebtedness or
other obligation, (b) to purchase or lease property, securities or
services for the purpose of assuring the owner of such Indebtedness or other
obligation of the payment of such Indebtedness or other obligation or (c) to
maintain working capital, equity capital or any other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation; provided,
however, that the term “Guarantee” shall
not include endorsements for collection or deposit in the ordinary course of
business.

 

“Guarantors”
shall mean Holdings and the Subsidiary Guarantors.

 

“Guarantee
and Collateral Agreement” shall mean the Guarantee and
Collateral Agreement, substantially in the form of Exhibit D, among
Holdings, the Borrower, the Subsidiaries party thereto and the Collateral Agent
for the benefit of the Secured Parties.

 

“Hazardous
Materials” shall mean (a) any petroleum products or
byproducts and all other hydrocarbons, coal ash, radon gas, asbestos, urea
formaldehyde foam insulation, polychlorinated biphenyls, chlorofluorocarbons
and all other ozone-depleting substances and (b) any chemical, material,
substance or waste that is prohibited, limited or regulated by or pursuant to
any Environmental Law.

 

14

 

“Hedging
Agreement” shall mean any interest rate protection agreement,
foreign currency exchange agreement, commodity price protection agreement or
other interest or currency exchange rate or commodity price hedging arrangement.

 

“HHS”  shall mean the United States Department of Health
and Human Services, or any successor Governmental Authority.

 

“Indebtedness”
of any person shall mean, without duplication, (a) all obligations of such
person for borrowed money, (b) all obligations of such person evidenced by
bonds, debentures, notes or similar instruments representing extensions of
credit, whether or not representing obligations for borrowed money, (c) all
obligations of such person under conditional sale or other title retention
agreements relating to property or assets purchased by such person (excluding
trade accounts payable incurred in the ordinary course of business), (d) all
obligations of such person issued or assumed as the deferred purchase price of
property or services (excluding trade accounts payable, deferred compensation
to employees and directors or former employees or directors, and accrued
obligations incurred in the ordinary course of business), (e) all
Indebtedness of others secured by (or for which the holder of such Indebtedness
has an existing right, contingent or otherwise, to be secured by) any Lien on
property owned or acquired by such person, whether or not the obligations
secured thereby have been assumed, (f) all Guarantees by such person of
Indebtedness of others, (g) all Capital Lease Obligations and Synthetic
Lease Obligations of such person, (h) all obligations of such person as an
account party in respect of letters of credit and (i) all obligations of
such person in respect of bankers’ acceptances. The Indebtedness of any person
shall include the Indebtedness of any partnership in which such person is a
general partner to the extent such person is liable therefor.

 

“Indemnified
Taxes” shall mean Taxes other than Excluded Taxes.

 

“Interest
Coverage Ratio” shall mean, at any date of determination, the
ratio of Consolidated EBITDA for the period of four consecutive fiscal quarters
most recently ended on or prior to such date to Consolidated Interest Expense
for such period.

 

“Interest
Payment Date” shall mean (a) with respect to any ABR Loan,
the last Business Day of each March, June, September and December,
beginning with the last Business Day of June 2010, and (b) with
respect to any Eurodollar Loan, the last day of the Interest Period applicable
to the Borrowing of which such Loan is a part and, in the case of a Eurodollar
Borrowing with an Interest Period of more than three months’ duration, each day
that would have been an Interest Payment Date had successive Interest Periods
of three months’ duration been applicable to such Borrowing.

 

“Interest
Period” shall mean, with respect to any Eurodollar
Borrowing, the period commencing on the date of such Borrowing and ending on
the numerically corresponding day (or, if there is no numerically corresponding
day, on the last day) in the calendar month that is 1, 2, 3 or
6 months (and, if agreed to by all of the applicable Lenders, 9 or 12
months) thereafter, as the Borrower may elect; provided,
however, that (a) if any Interest Period would end on a day other than a
Business Day, such Interest 

 

15

 

Period shall be extended to the next succeeding
Business Day unless such next succeeding Business Day would fall in the next
calendar month, in which case such Interest Period shall end on the next
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 end on the last Business Day of the calendar month at the end of such
Interest Period and (c) no Interest Period for any Loan shall extend
beyond the maturity date of such Loan. Interest shall accrue from and including
the first day of an Interest Period to but excluding the last day of such
Interest Period. For purposes hereof, the date of a Borrowing initially shall
be the date on which such Borrowing is made and thereafter shall be the
effective date of the most recent conversion or continuation of such Borrowing.

 

“Investors”
shall mean the Sponsor Investors and those stockholders, option holders and
warrant holders who own Equity Interests of Holdings on the Closing Date.

 

“Investor
Stockholders Agreement” shall mean the Investor Stockholders Agreement,
dated March 28, 2007, by and among Holdings and certain of the Investors.

 

“Issuing
Bank” shall mean, as the context may require, (a) Credit
Suisse AG, Cayman Islands Branch, in its capacity as the issuer of Letters of
Credit hereunder, (b) with respect to each Existing Letter of Credit, the
Lender that issued such Existing Letter of Credit, and (c) any other
Lender that may become an Issuing Bank pursuant to Section 2.22(i) or
2.22(k), with respect to Letters of Credit issued by such Lender. The Issuing
Bank may, in its discretion, arrange for one or more Letters of Credit to be
issued by Affiliates or branches of the Issuing Bank, in which case the term “Issuing
Bank” shall include any such Affiliate or branch with respect to Letters of
Credit issued by such Affiliate or branch.

 

“Issuing
Bank Fees” shall have the meaning assigned to such term in Section 2.05(c).

 

“Lead
Arranger” shall mean Credit Suisse Securities (USA) LLC, in its
capacity as sole lead arranger and sole bookrunner.

 

“L/C
Commitment” shall mean the commitment of the Issuing Bank to
issue Letters of Credit pursuant to Section 2.22.

 

“L/C
Disbursement” shall mean a payment or disbursement made by the
Issuing Bank pursuant to a Letter of Credit.

 

“L/C
Exposure” shall mean at any time the sum of (a) the
aggregate undrawn amount of all outstanding Letters of Credit at such time that
are denominated in dollars, plus the Dollar
Equivalent at such time of the aggregate undrawn amount of all outstanding
Alternative Currency Letters of Credit, and (b) the aggregate principal
amount of all L/C Disbursements in respect of Letters of Credit denominated in
dollars that have not yet been reimbursed at such time plus the
Dollar Equivalent at such time of the aggregate principal amount of all L/C Disbursements
in respect of Letters of Credit 

 

16

 

denominated
in Alternative Currencies that have not yet been reimbursed at such time. The
L/C Exposure of any Revolving Credit Lender at any time shall equal its Pro
Rata Percentage of the aggregate L/C Exposure at such time.

 

“L/C
Participation Fee” shall have the meaning assigned to such term
in Section 2.05(c).

 

“Lenders”
shall mean (a) the persons listed on Schedule 2.01 (other than any
such person that has ceased to be a party hereto pursuant to an Assignment and
Acceptance) and (b) any person that has become a party hereto pursuant to
an Assignment and Acceptance.

 

“Letter
of Credit” shall mean any letter of credit issued pursuant to Section 2.22
and any Existing Letter of Credit.

 

“Leverage
Ratio” shall mean, on any date, the ratio of Total Net Debt on
such date to Consolidated EBITDA for the period of four consecutive fiscal
quarters most recently ended on or prior to such date. In any period of four
consecutive fiscal quarters in which a Permitted Acquisition or a Significant
Asset Sale occurs, the Leverage Ratio shall be determined on a pro forma basis
in accordance with definition of Consolidated EBITDA.

 

“LIBO
Rate” shall mean, with respect to any Eurodollar Borrowing for
any Interest Period, the rate per annum determined by the Administrative Agent
at approximately 11:00 a.m. (London time) on the date that is two Business
Days prior to the commencement of such Interest Period by reference to the
British Bankers’ Association Interest Settlement Rates for deposits in dollars
(as set forth by any service selected by the Administrative Agent that has been
nominated by the British Bankers’ Association as an authorized information
vendor for the purpose of displaying such rates) for a period equal to such
Interest Period; provided that, to the extent that
an interest rate is not ascertainable pursuant to the foregoing provisions of
this definition, the “LIBO Rate” shall be the interest rate per annum determined
by the Administrative Agent to be the average of the rates per annum at which
deposits in dollars are offered for such relevant Interest Period to major
banks in the London interbank market in London, England by the Administrative
Agent at approximately 11:00 a.m. (London time) on the date that is two
Business Days prior to the beginning of such Interest Period.

 

“Lien”
shall mean, with respect to any asset, (a) any mortgage, deed of trust,
lien, pledge, encumbrance, charge or security interest in or on such asset, (b) the
interest of a vendor or a lessor under any conditional sale agreement, capital
lease or title retention agreement (or any financing lease having substantially
the same economic effect as any of the foregoing) relating to such asset and (c) in
the case of securities, any purchase option, call or similar right of a third
party with respect to such securities.

 

“Loan
Documents” shall mean this Agreement, the Letters of Credit, the
Security Documents and the promissory notes, if any, executed and delivered
pursuant to Section 2.04(e).

 

17

 

“Loan
Parties” shall mean Holdings, the Borrower and the Subsidiary
Guarantors.

 

“Loans”
shall mean the Revolving Loans and the Term Loans.

 

“Margin
Stock” shall have the meaning assigned to such term in
Regulation U.

 

“Material
Adverse Effect” shall mean (a) a materially adverse effect
on the business, assets, operations or condition (financial or otherwise) of
Holdings, the Borrower and the Subsidiaries, taken as a whole, (b) a
material impairment of the ability of Holdings, the Borrower and the other Loan
Parties, taken as a whole, to perform any of their obligations under any Loan
Document or (c) a material impairment of the rights of or benefits
available to the Lenders, or any of them, under any Loan Document.

 

“Material
Indebtedness” shall mean Indebtedness (other than the Loans and
Letters of Credit), or obligations in respect of one or more Hedging
Agreements, of any one or more of Holdings, the Borrower and the Subsidiaries
in an aggregate principal amount exceeding $7,500,000.  For purposes of determining Material
Indebtedness, the “principal amount” of the obligations of Holdings, the
Borrower or any Subsidiary in respect of any Hedging Agreement at any time
shall be the maximum aggregate amount (giving effect to any netting agreements)
that Holdings, the Borrower or such Subsidiary would be required to pay if such
Hedging Agreement were terminated at such time.

 

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

 

“Mortgaged
Properties” shall mean, initially, the owned real properties of
the Loan Parties specified on Schedule 1.01(b), and shall include each other
parcel of real property and improvements thereto with respect to which a
Mortgage is granted pursuant to Section 5.12.

 

“Mortgages”
shall mean the mortgages, deeds of trust, assignments of leases and rents,
modifications and other security documents delivered pursuant to clause (i) of
Section 4.02(h) or pursuant to Section 5.12, each substantially
in the form of Exhibit H.

 

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

 

“Net
Cash Proceeds” shall mean (a) with respect to any Asset
Sale, the cash proceeds (including cash proceeds subsequently received (as and
when received) in respect of noncash consideration initially received), net of (i) selling
expenses (including reasonable broker’s fees or commissions, investment banking
fees, legal fees, transfer and similar Taxes and the Borrower’s good faith
estimate of Taxes paid or payable in connection with such sale or, in the case
of any Foreign Subsidiary, repatriation to the Borrower), (ii) amounts
provided in good faith as a reserve against any liabilities under any indemnification
obligations or purchase price adjustment associated with such Asset Sale (provided that, to the extent and at the time any such
amounts are released from such reserve, such amounts shall constitute Net Cash
Proceeds) and (iii) the principal amount, premium or penalty, if any,
interest and other amounts on any Indebtedness or other 

 

18

 

contractual
obligations which are secured by the assets sold in such Asset Sale and which
is required to be repaid with such proceeds (other than any such Indebtedness
or other contractual obligation assumed by the purchaser of such asset); provided, however, that,
if (x)  the Borrower shall deliver a certificate of a Financial Officer to
the Administrative Agent at the time of receipt thereof setting forth the
Borrower’s intent to reinvest such proceeds in productive assets of a kind then
used or usable in the business of the Borrower and the Subsidiaries within 360
days of receipt of such proceeds and (y) no Default or Event of Default
shall have occurred and shall be continuing at the time of such certificate or
at the proposed time of the application of such proceeds, such proceeds shall
not constitute Net Cash Proceeds except to the extent not so used at the end of
such 360-day period, at which time such proceeds shall be deemed to be Net Cash
Proceeds; and (b) with respect to any issuance or incurrence of
Indebtedness or any Equity Issuance, the cash proceeds thereof, net of all
Taxes and fees, commissions, costs and other expenses incurred in connection
therewith.

 

“New
Drug Licensing Costs” shall mean, for any period, the costs or
expenses incurred by Holdings or the Subsidiaries during such period,
determined on a consolidated basis in accordance with GAAP, in respect of
rights to drugs or devices (or active pharmaceutical ingredients, components or
related elements) that are licensed or otherwise obtained by Holdings or the
Subsidiaries, to the extent such costs or expenses are not included as Capital
Expenditures or Capitalized Drug Licensing Costs.

 

“New Lending Office” shall have the
meaning assigned to such term in Section 2.20(f)

 

“Obligations”
shall mean all obligations defined as “Obligations” in the Guarantee and
Collateral Agreement and the other Security Documents.

 

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

 

“Participant
Register” shall have the meaning assigned to such term in Section 9.04(f)

 

“PBGC”
shall mean the Pension Benefit Guaranty Corporation referred to and defined in
ERISA.

 

“Perfection
Certificate” shall mean the Perfection Certificate substantially
in the form of Exhibit B to the Guarantee and Collateral Agreement.

 

“Permitted
Acquisition” shall have the meaning assigned to such term in Section 6.04(g).

 

“Permitted
Cure Securities” shall mean Qualified Capital Stock of Holdings
issued to one or more of the Investors (a) that is common stock of
Holdings or (b) upon 

 

19

 

which
all dividends or distributions, at the election of Holdings, may be payable in
additional shares of such Qualified Capital Stock.

 

“Permitted
Investments” shall mean:

 

(a) direct obligations
of, or obligations the principal of and interest on which are unconditionally
guaranteed by, the United States of America (or by any agency thereof to the
extent such obligations are backed by the full faith and credit of the United
States of America), in each case maturing within one year from the date of
acquisition thereof;

 

(b) investments in
commercial paper maturing within 270 days from the date of acquisition thereof
and having, at such date of acquisition, the highest credit rating obtainable
from S&P or from Moody’s;

 

(c) investments in
certificates of deposit, banker’s acceptances and time deposits maturing within
one year from the date of acquisition thereof issued or guaranteed by or placed
with, and money market deposit accounts issued or offered by, the
Administrative Agent, any domestic office of any Lender that is a bank, or any
domestic office of any commercial bank organized under the laws of the United
States of America or any State thereof that has a combined capital and surplus
and undivided profits of not less than $500,000,000;

 

(d) fully
collateralized repurchase agreements with a term of not more than 30 days for
securities described in clause (a) above and entered into with a
financial institution satisfying the criteria of clause (c) above;

 

(e) investments in “money
market funds” within the meaning of Rule 2a-7 under the Investment Company
Act of 1940, as amended, substantially all of whose assets are invested in
investments of the type described in clauses (a) through (d) above;

 

(f) marketable direct
obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof,
in each case maturing within one year after such date and having, at the time
of the acquisition thereof a rating of at least A-1 from S&P or at least
P-1 from Moody’s; and

 

(g) other short-term
investments utilized by Foreign Subsidiaries in accordance with normal
investment practices for cash management in investments of a type analogous to
the foregoing.

 

“Permitted
Subordinated Debt” shall mean unsecured subordinated
Indebtedness issued by Holdings or the Borrower (which may be guaranteed by one
or more Loan Parties on a subordinated basis) (a) the terms of which (i) do
not provide for any scheduled repayment, mandatory redemption or sinking fund
obligation (but for the avoidance of doubt, may provide for interest payments
and customary “asset sale” and “change of control” payment provisions) prior to
the date that is one year after the Term

 

20

 

Loan
Maturity Date and (ii) provide for subordination of payments in respect of
such Indebtedness to the Obligations on terms reasonably acceptable to the
Administrative Agent and (b) do not contain any financial maintenance
covenants.

 

“person”
shall mean any natural person, corporation, business trust, joint venture,
association, company, limited liability company, partnership, Governmental
Authority or other entity.

 

“PIK
Shareholder Subordinated Notes” shall mean Shareholder
Subordinated Notes all of the interest on which that is otherwise payable prior
to the first anniversary of the Term Loan Maturity Date may, at Holdings’
option, be capitalized or paid by the issuance of additional PIK Shareholder
Subordinated Notes rather than in cash.

 

“Plan”
shall mean any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the
Code or Section 302 of ERISA, and in respect of which the Borrower or any
ERISA Affiliate is (or, if such plan were terminated, would under Section 4069
of ERISA be deemed to be) an “employer” as defined in Section 3(5) of
ERISA.

 

“Preferred
Stock” shall mean the Series A, Series B and Series C
preferred stock of Holdings.

 

“Prime
Rate” shall mean the rate of interest per annum determined from
time to time by the Lender acting as Administrative Agent as its prime rate in
effect at its principal office in New York City and notified to the
Borrower.  The prime rate is a rate set by the Administrative Agent based upon various
factors, including the Administrative Agent’s costs and desired return, general
economic conditions and other factors, and is used as a reference point for
pricing some loans, which may be priced at, above, or below such rate.

 

“Product
Recall Notice” shall mean any
written notice from the FDA stating that any product or product line of
Holdings or any of its Subsidiaries has been or will be recalled.

 

“Pro
Rata Percentage” of any Revolving Credit Lender at any time
shall mean the percentage of the Total Revolving Credit Commitment represented
by such Lender’s Revolving Credit Commitment. In the event the Revolving Credit
Commitments shall have expired or been terminated, the Pro Rata Percentages
shall be determined on the basis of the Revolving Credit Commitments most
recently in effect, giving effect to any subsequent assignments.

 

“Qualified
Capital Stock” of any person shall mean any Equity Interest of
such person that is not Disqualified Stock.

 

“Qualified
Public Offering” shall mean the initial underwritten public
offering of common Equity Interests of Holdings pursuant to an effective
registration statement filed with the Securities and Exchange Commission in
accordance with the Securities Act of 1933, as amended, covering 10% or more of
Holdings’ common equity.

 

21

 

“Register”
shall have the meaning assigned to such term in Section 9.04(d).

 

“Regulation
T” shall mean Regulation T of the Board as from time to
time in effect and all official rulings and interpretations thereunder or
thereof.

 

“Regulation
U” shall mean Regulation U of the Board as from time to
time in effect and all official rulings and interpretations thereunder or
thereof.

 

“Regulation X”
shall mean Regulation X of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof.

 

“Regulatory Approvals”
shall have the meaning assigned to such term in Section 3.09(b).

 

“Related Fund” shall mean,
with respect to any Lender that is a fund or commingled investment vehicle that
invests in bank loans, any other fund that invests in bank loans and is managed
or advised by the same investment advisor as such Lender or by an Affiliate of
such investment advisor.

 

“Related
Parties” shall mean, with respect to any specified person, such
person’s Affiliates and the respective directors, trustees, officers,
employees, agents and advisors of such person and such person’s Affiliates.

 

“Release”
shall mean any release, spill, emission, leaking, dumping, injection, pouring,
deposit, disposal, discharge, dispersal, leaching or migration into or through
the environment or within any building, structure, facility or fixture.

 

“Repayment
Date” shall have the meaning given such term in Section 2.11.

 

“Required
Lenders” shall mean, at any time, Lenders having Loans, L/C
Exposure, and unused Revolving Credit Commitments and Term Loan Commitments
representing more than 50% of the sum of all Loans outstanding, L/C Exposure
and unused  Revolving Credit Commitments
and Term Loan Commitments at such time; provided that
the Revolving Loans, L/C Exposure and unused Revolving Credit Commitments of
any Defaulting Lender shall be disregarded in the determination of the Required
Lenders at any time.

 

“Reset
Date”  shall have the
meaning assigned to such term in Section 1.04.

 

“Responsible
Officer” of any person shall mean any executive officer or
Financial Officer of such person and any other officer or similar official
thereof responsible for the administration of the obligations of such person in
respect of this Agreement.

 

“Restricted
Indebtedness” shall mean Indebtedness of Holdings, the Borrower
or any Subsidiary, the payment, prepayment, repurchase or defeasance of which
is restricted under Section 6.09(b).

 

22

 

“Restricted
Payment” shall mean any dividend or other distribution (whether
in cash, securities or other property (other than Qualified Capital Stock))
with respect to any Equity Interests in Holdings, the Borrower or any
Subsidiary, or any payment (whether in cash, securities or other property
(other than Qualified Capital Stock)), including any sinking fund or similar
deposit, on account of the purchase, redemption, retirement, acquisition,
cancelation or termination of any Equity Interests in Holdings, in the Borrower
or any Subsidiary or any option, warrant or other right to acquire any such
Equity Interests in Holdings, the Borrower or any Subsidiary.

 

“Revolving
Credit Borrowing” shall mean a Borrowing comprised of Revolving
Loans.

 

“Revolving
Credit Commitment” shall mean, with respect to each Lender, the
commitment of such Lender to make Revolving Loans hereunder as set forth on
Schedule 2.01, or in the Assignment and Acceptance pursuant to which such
Lender assumed its Revolving Credit Commitment, as applicable, as the same may
be (a) reduced from time to time pursuant to Section 2.09 and (b) reduced
or increased from time to time pursuant to assignments by or to such Lender
pursuant to Section 9.04.

 

“Revolving
Credit Exposure” shall mean, with respect to any Lender at any
time, the aggregate principal amount at such time of all outstanding Revolving
Loans of such Lender, plus the
aggregate amount at such time of such Lender’s L/C Exposure.

 

“Revolving
Credit Lender” shall mean a Lender with a Revolving Credit
Commitment or an outstanding Revolving Loan.

 

“Revolving
Credit Maturity Date” shall mean May 14, 2015.

 

“Revolving
Loans” shall mean the revolving loans made by the Lenders to the
Borrower pursuant to clause (ii) of Section 2.01.

 

“Secured
Parties” shall have the meaning assigned to such term in the
Guarantee and Collateral Agreement.

 

“Security
Documents” shall mean the Mortgages, the Guarantee and
Collateral Agreement and each of the security agreements, mortgages and other
instruments and documents executed and delivered pursuant thereto or pursuant
to Section 5.12.

 

“Shareholder
Subordinated Notes” shall mean unsecured subordinated notes
issued by Holdings (and not guaranteed by the Borrower or any Subsidiary) (a) the
terms of which (i) do not provide for any scheduled repayment, mandatory
redemption or sinking fund obligation prior to the date that is one year after
the Term Loan Maturity Date, (ii) provide for subordination of payments in
respect of such notes to the Obligations on terms reasonably acceptable to the
Administrative Agent and (iii) do not provide for the payment of interest
in cash at a rate in excess of 12% per annum, (b) do not contain any
financial maintenance covenants and (c) the proceeds of which are used to
finance all or a portion of Capitalized Drug Licensing Costs or a Permitted
Acquisition (and related fees and expenses).

 

23

 

“Significant
Asset Sale” shall mean an Asset Sale of all or substantially all
of the assets of, or a majority of the Equity Interests in, a person, or a
division or line of business or other business unit of a person, in each case
for gross consideration of $1,000,000 or more.

 

“SPC”
shall have the meaning assigned to such term in Section 9.04(i).

 

“S&P”
shall mean Standard & Poor’s Ratings Service, or any successor
thereto.

 

“Sponsor
Investors” shall mean New Mountain Partners II, L.P., New
Mountain Affiliated Investors II, L.P., Allegheny New Mountain
Partners II, L.P., ARCH Venture Fund VI, L.P., Venrock Partners,
L.P., Venrock Associates IV, L.P., Venrock Entrepreneurs Fund IV,
L.P., 5AM Ventures LLC, 5AM Co-Investors LLC, Aravis Venture I L.P., Black
Point Group, L.P., and their respective Affiliates, limited partners and
successors.

 

“Statutory
Reserves” shall mean a fraction (expressed as a decimal), the
numerator of which is the number one and the denominator of which is the number
one minus the aggregate of the maximum reserve percentages (including any marginal,
special, emergency or supplemental reserves) expressed as a decimal established
by the Board and any other banking authority, domestic or foreign, to which the
Administrative Agent or any Lender (including any branch, Affiliate, or other
fronting office making or holding a Loan) is subject for Eurocurrency
Liabilities (as defined in Regulation D of the Board).  Eurodollar Loans shall be deemed to
constitute Eurocurrency Liabilities as defined in Regulation D of the
Board) and to be subject to such reserve requirements without benefit of or
credit for proration, exemptions or offsets that may be available from time to
time to any Lender under such Regulation D. Statutory Reserves shall be
adjusted automatically on and as of the effective date of any change in any
reserve percentage.

 

“Sterling”
or “£” shall mean lawful money of the United Kingdom.

 

“subsidiary”
shall mean, with respect to any person (herein referred to as the “parent”), any corporation,
partnership, limited liability company, association or other business entity (a) of
which securities or other ownership interests representing more than 50% of the
equity or more than 50% of the ordinary voting power or more than 50% of the
general partnership interests are, at the time any determination is being made,
owned, Controlled or held, or (b) that is, at the time any determination
is made, otherwise Controlled, by the parent or one or more subsidiaries of the
parent or by the parent and one or more subsidiaries of the parent.

 

“Subsidiary”
shall mean any subsidiary of Holdings.

 

“Subsidiary
Guarantor” shall mean each Subsidiary listed on
Schedule 1.01(a), and each other Subsidiary that is or becomes a party to
the Guarantee and Collateral Agreement.

 

24

 

“Synthetic
Lease” shall mean, as to any person, any lease (including leases
that may be terminated by the lessee at any time) of any property (whether
real, personal or mixed) (a) that is accounted for as an operating lease
under GAAP and (b) in respect of which the lessee retains or obtains
ownership of the property so leased for U.S. federal income Tax purposes, other
than any such lease under which such person is the lessor.

 

“Synthetic
Lease Obligations” shall mean, as to any person, an amount equal
to the capitalized amount of the remaining lease payments under any Synthetic
Lease that would appear on a balance sheet of such person in accordance with
GAAP if such obligations were accounted for as Capital Lease Obligations.

 

“Synthetic
Purchase Agreement” shall mean any swap, derivative or other
agreement or combination of agreements pursuant to which Holdings, the Borrower
or any Subsidiary is or may become obligated to make (a) any payment in
connection with a purchase by any third party from a person other than
Holdings, the Borrower or any Subsidiary of any Equity Interest or Restricted
Indebtedness or (b) any payment (other than on account of a permitted
purchase by it of any Equity Interest or Restricted Indebtedness) the amount of
which is determined by reference to the price or value at any time of any
Equity Interest or Restricted Indebtedness; provided that
no phantom stock or similar plan providing for payments only to current or
former directors, officers or employees of Holdings, the Borrower or the
Subsidiaries (or to their heirs or estates) shall be deemed to be a Synthetic
Purchase Agreement.

 

“Taxes”
shall mean any and all present or future taxes, levies, imposts, duties,
deductions, charges, liabilities or withholdings imposed by any Governmental
Authority.

 

“Term
Borrowing” shall mean a Borrowing comprised of Term Loans.

 

“Term
Lender” shall mean a Lender with a Term Loan Commitment or an
outstanding Term Loan.

 

“Term
Loan Commitment” shall mean, with respect to each Lender, the
commitment of such Lender to make Term Loans hereunder as set forth on
Schedule 2.01, or in the Assignment and Acceptance pursuant to which such
Lender assumed its Term Loan Commitment, as applicable, as the same may be (a) reduced
from time to time pursuant to Section 2.09 and (b) reduced or
increased from time to time pursuant to assignments by or to such Lender
pursuant to Section 9.04.

 

“Term
Loan Maturity Date” shall mean May 14, 2016.

 

“Term
Loans” shall mean the term loans made by the Lenders to the
Borrower pursuant to Section 2.01.

 

“Total
Net Debt” shall mean, at any time, the total Indebtedness of
Holdings, the Borrower and the Subsidiaries at such time (excluding (a) Indebtedness
of the type described in clause (h) of the definition of such term,
except to the extent of any unreimbursed drawings thereunder, and (b) any
PIK Shareholder Subordinated Notes), less the unrestricted cash and
Permitted Investments (determined in accordance with 

 

25

 

GAAP)
of Holdings and its Subsidiaries at such time to the extent (a) the
aggregate amount of such unrestricted cash and Permitted Investments
(determined in accordance with GAAP) of Holdings and its Subsidiaries at such
time does not exceed $50,000,000 and (b) such cash and Permitted
Investments are maintained in one or more accounts constituting Collateral
under the Guarantee and Collateral Agreement over which the Collateral Agent
has control (within the meaning of Section 9-314 of the relevant Uniform
Commercial Code), provided that any such accounts
maintained with the Administrative Agent are deemed to be controlled by the
Collateral Agent.

 

“Total
Revolving Credit Commitment” shall mean, at any time, the
aggregate amount of the Revolving Credit Commitments, as in effect at such
time. The initial Total Revolving Credit Commitment is $40,000,000.

 

“Transactions” shall
mean, collectively, (a) the execution, delivery and performance by the
Loan Parties of the Loan Documents to which they are a party and in the case of
the Borrower, the making of the borrowings hereunder, (b) the Existing
Debt Refinancing, (c) the payment of the Dividend and (d) the payment
of related fees and expenses.

 

“Transaction
Costs”  shall mean (and
regardless of whether accrued and/or paid before, on or after the Closing
Date), the sum, without duplication, of all fees, costs and expenses payable by
Holdings and the Subsidiaries and associated with the consummation of the
Transactions.

 

“Type”,
when used in respect of any Loan or Borrowing, shall refer to the Rate by
reference to which interest on such Loan or on the Loans comprising such
Borrowing is determined. For purposes hereof, the term “Rate”
shall mean the Adjusted LIBO Rate and the Alternate Base Rate.

 

“USA
PATRIOT Act” shall mean The Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001 (Title III of Pub. L. No. 107-56 (signed into law October 26,
2001)).

 

“Voluntary
Prepayment” shall mean a prepayment of principal of Term Loans
pursuant to Section 2.12 in any year to the extent that such prepayment
reduces the scheduled installments of principal due in respect of Term Loans
set forth in Section 2.11 in any subsequent year.

 

“wholly
owned Subsidiary” of any person shall mean a subsidiary of such
person of which securities (except for directors’ or foreign nationals’
qualifying shares) or other ownership interests representing 100% of the Equity
Interests are, at the time any determination is being made, owned, Controlled
or held by such person or one or more wholly owned Subsidiaries of such person
or by such person and one or more wholly owned Subsidiaries of such person.

 

“Withdrawal
Liability” shall mean liability to a Multiemployer Plan as a
result of a complete or partial withdrawal from such Multiemployer Plan, as
such terms are defined in Part I of Subtitle E of Title IV of
ERISA.

 

26

 

SECTION 1.02.  Terms Generally.  The definitions in Section 1.01 shall
apply equally to both the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”. The word “will”
shall be construed to have the same meaning and effect as the word “shall”; and
the words “asset” and “property” shall be construed as having the same meaning
and effect and to refer to any and all tangible and intangible assets and
properties, including cash, securities, accounts and contract rights. All
references herein to Articles, Sections, Exhibits and Schedules shall be deemed
references to Articles and Sections of, and Exhibits and Schedules to, this Agreement
unless the context shall otherwise require. Except as otherwise expressly
provided herein, (a) any reference in this Agreement to any Loan Document
shall mean such document as amended, restated, supplemented or otherwise
modified from time to time and (b) all terms of an accounting or financial
nature shall be construed in accordance with GAAP, as in effect from time to
time; provided, however, that if the Borrower notifies the
Administrative Agent that the Borrower wishes to amend any covenant in Article VI
or any related definition to eliminate the effect of any change in GAAP
occurring after the date of this Agreement on the operation of such covenant
(or if the Administrative Agent notifies the Borrower that the Required Lenders
wish to amend Article VI or any related definition for such purpose), then
the Borrower’s compliance with such covenant shall be determined on the basis
of GAAP in effect immediately before the relevant change in GAAP became
effective, until either such notice is withdrawn or such covenant is amended in
a manner satisfactory to the Borrower and the Required Lenders.  Notwithstanding any other provision contained
herein, all terms of an accounting or financial nature used herein shall be
construed, and all computations of amounts and ratios referred to herein shall
be made, without giving effect to any election under Accounting Standards
Codification 825 (or any other Financial Accounting Standard or Accounting
Standards Codification having a similar result or effect) to value any
Indebtedness or other liabilities of Holdings, the Borrower or any of their
respective Subsidiaries at “fair value”, as defined therein.

 

SECTION 1.03.  Classification of Loans and Borrowings. 
For purposes of this Agreement, Loans may be classified and referred to
by Class (e.g., a “Revolving
Loan”) or by Type (e.g., a “Eurodollar
Loan”) or by Class and Type (e.g.,
a “Eurodollar Revolving Loan”). Borrowings also may be classified and referred
to by Class (e.g., a “Revolving
Borrowing”) or by Type (e.g., a “Eurodollar
Borrowing”) or by Class and Type (e.g.,
a “Eurodollar Revolving Borrowing”).

 

SECTION 1.04.  Exchange Rates.  On each Calculation Date, the Administrative
Agent shall (i) determine the relevant Exchange Rates as of such
Calculation Date and (ii) give notice thereof to the Lenders and the
Borrower.  The Exchange Rates so
determined shall become effective on the first Business Day immediately
following the relevant Calculation Date (a “Reset Date”), shall remain effective
until the next succeeding Reset Date, and shall for all purposes of this
Agreement (other than Section 2.02(f), Section 2.05(c), Section 9.20
or any other provision expressly requiring the use of a current Exchange Rate)
be the Exchange Rates employed in converting any amounts between dollars and
Alternative Currencies.

 

27

 

ARTICLE
II

 

The Credits

 

SECTION 2.01.  Commitments.  Subject to the terms
and conditions and relying upon the representations and warranties herein set forth,
each Lender agrees, severally and not jointly, (i) to make a Term Loan to
the Borrower on the Closing Date, in an aggregate principal amount equal to its
Term Loan Commitment, and (ii) to make Revolving Loans to the Borrower, at
any time and from time to time after the date hereof, and until the earlier of
the Revolving Credit Maturity Date and the termination of the Revolving Credit
Commitment of such Lender in accordance with the terms hereof, in an aggregate
principal amount at any time outstanding that will not result in such
Lender’s Revolving Credit Exposure exceeding such Lender’s Revolving Credit
Commitment.  Within the limits set forth
in clause (ii) of the preceding sentence and subject to the terms,
conditions and limitations set forth herein, the Borrower may borrow, pay or
prepay and reborrow Revolving Loans. Amounts paid or prepaid in respect of Term
Loans may not be reborrowed.

 

SECTION 2.02.  Loans.  (a)  Each Loan shall
be made as part of a Borrowing consisting of Loans made by the Lenders ratably
in accordance with their applicable Commitments; provided, however,
that the failure of any Lender to make any Loan shall not in itself relieve any
other Lender of its obligation to lend hereunder (it being understood, however,
that no Lender shall be responsible for the failure of any other Lender to make
any Loan required to be made by such other Lender).  Except for Loans deemed made pursuant to Section 2.02(f),
the Loans comprising any Borrowing shall be in an aggregate principal amount
that is (i) an integral multiple of $1,000,000 and not less than
$2,000,000 or (ii) equal to the remaining available balance of the
applicable Commitments.

 

(b)  Subject to Sections 2.02(f),
2.08 and 2.15, each Borrowing shall be comprised entirely of ABR Loans or
Eurodollar Loans as the Borrower may request pursuant to Section 2.03.
Each Lender may at its option make any Eurodollar Loan by causing any domestic
or foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option
shall not affect the obligation of the Borrower to repay such Loan in
accordance with the terms of this Agreement. Borrowings of more than one Type
may be outstanding at the same time; provided,
however, that the Borrower
shall not be entitled to request any Borrowing that, if made, would result
in more than 10 Eurodollar Borrowings outstanding hereunder at any time.
For purposes of the foregoing, Borrowings having different Interest Periods,
regardless of whether they commence on the same date, shall be considered
separate Borrowings.

 

(c)  Except with respect to Loans made
pursuant to Section 2.02(f), each Lender shall make each Loan required to
be made by it hereunder on the proposed date thereof by wire transfer of
immediately available funds to such account in New York City as the
Administrative Agent may designate not later than 2:00 p.m., New York City
time, and the Administrative Agent shall promptly credit the 

 

28

 

amounts so received to an account designated by the Borrower in the
applicable Borrowing Request or, if a Borrowing shall not occur on such date
because any condition precedent herein specified shall not have been met,
return the amounts so received to the respective Lenders.

 

(d)  Unless the Administrative Agent
shall have received notice from a Lender prior to the date of any Borrowing
that such Lender will not make available to the Administrative Agent such
Lender’s portion of such Borrowing, the Administrative Agent may assume that such
Lender has made such portion available to the Administrative Agent on the date
of such Borrowing in accordance with paragraph (c) above and the
Administrative Agent may, in reliance upon such assumption, make available to
the Borrower on such date a corresponding amount. If the Administrative Agent
shall have so made funds available then, to the extent that such Lender shall
not have made such portion available to the Administrative Agent, such Lender
and the Borrower severally agree to repay to the Administrative Agent forthwith
on demand such corresponding amount together with interest thereon, for each
day from the date such amount is made available to the Borrower to but
excluding the date such amount is repaid to the Administrative Agent at (i) in
the case of the Borrower, a rate per annum equal to the interest rate
applicable at the time to the Loans comprising such Borrowing and (ii) in
the case of such Lender, a rate determined by the Administrative Agent to
represent its cost of overnight or short-term funds (which determination shall
be conclusive absent manifest error). If such Lender shall repay to the
Administrative Agent such corresponding amount, such amount shall constitute
such Lender’s Loan as part of such Borrowing for purposes of this Agreement.

 

(e)  Notwithstanding any other provision
of this Agreement, the Borrower shall not be entitled to request any Revolving
Credit Borrowing if the Interest Period requested with respect thereto would
end after the Revolving Credit Maturity Date.

 

(f)  If the Issuing Bank shall not have
received from the Borrower the payment required to be made by Section 2.22(e) within
the time specified in such Section, the Issuing Bank will promptly notify the
Administrative Agent of the L/C Disbursement and the Administrative Agent will
promptly notify each Revolving Credit Lender of such L/C Disbursement, the
Dollar Equivalent thereof (if denominated in an Alternative Currency) and its
Pro Rata Percentage thereof.  Each Revolving
Credit Lender shall pay by wire transfer of immediately available dollars to
the Administrative Agent not later than 2:00 p.m., New York City time, on
such date (or, if such Revolving Credit Lender shall have received such notice
later than 12:00 (noon), New York City time, on any day, not later than 10:00 a.m.,
New York City time, on the immediately following Business Day), an amount equal
to such Lender’s Pro Rata Percentage of such L/C Disbursement (or the Dollar
Equivalent thereof if such L/C Disbursement was denominated in an Alternative
Currency) (it being understood that (i) if the conditions precedent to
borrowing set forth in Sections 4.01(b) and (c) have been
satisfied, such amount shall be deemed to constitute an ABR Revolving Loan of
such Lender and, to the 

 

29

 

extent of such payment, the obligations of the Borrower in respect of
such L/C Disbursement shall be discharged and replaced with the resulting ABR
Revolving Credit Borrowing, and (ii) if such conditions precedent to
borrowing have not been satisfied, then any such amount paid by any Revolving
Credit Lender shall not constitute a Loan and shall not relieve the Borrower
from its obligation to reimburse such L/C Disbursement), and the Administrative
Agent will promptly pay to the Issuing Bank amounts so received by it from the
Revolving Credit Lenders. The Administrative Agent will promptly pay to the
Issuing Bank any amounts received by it from the Borrower pursuant to Section 2.22(e) prior
to the time that any Revolving Credit Lender makes any payment pursuant to this
paragraph (f); any such amounts received by the Administrative Agent thereafter
will be promptly remitted by the Administrative Agent to the Revolving Credit
Lenders that shall have made such payments and to the Issuing Bank, as their
interests may appear. If any Revolving Credit Lender shall not have made its
Pro Rata Percentage of such L/C Disbursement available to the Administrative
Agent as provided above, such Lender and the Borrower severally agree to pay interest
on such amount, for each day from and including the date such amount is
required to be paid in accordance with this paragraph to but excluding the date
such amount is paid, to the Administrative Agent for the account of the Issuing
Bank at (i) in the case of the Borrower, a rate per annum equal to the
interest rate applicable to Revolving Loans pursuant to Section 2.06(a),
and (ii) in the case of such Lender, for the first such day, the Federal
Funds Effective Rate, and for each day thereafter, the Alternate Base Rate.

 

SECTION 2.03.  Borrowing Procedure.  In order to request a Borrowing (other than a
deemed Borrowing pursuant to Section 2.02(f), as to which this Section 2.03
shall not apply), the Borrower shall notify the Administrative Agent of such
request by telephone (a) in the case of a Eurodollar Borrowing, not later
than 12:00 (noon), New York City time, three Business Days before a
proposed Borrowing; provided that,
in the case of a Eurodollar Borrowing for the initial Credit Event, the Borrower
shall notify the Administrative Agent of such request by telephone not later
than 12:00 (noon), New York City time, one Business Day before the proposed
borrowing, and (b) in the case of an ABR Borrowing, not later than
12:00 noon, New York City time, on the day of a proposed
Borrowing.  Each such telephonic
Borrowing Request shall be irrevocable, and shall be confirmed promptly by hand
delivery or fax to the Administrative Agent of a written Borrowing Request and shall
specify the following information: (i) whether the Borrowing then being
requested is to be a Term Borrowing or a Revolving Credit Borrowing, and
whether such Borrowing is to be a Eurodollar Borrowing or an ABR Borrowing; (ii) the
date of such Borrowing (which shall be a Business Day); (iii) the number
and location of the account to which funds are to be disbursed; (iv) the
amount of such Borrowing; and (v) if such Borrowing is to be a Eurodollar
Borrowing, the Interest Period with respect thereto; provided, however,
that, notwithstanding any contrary specification in any Borrowing Request, each
requested Borrowing shall comply with the requirements set forth in Section 2.02.
If no election as to the Type of Borrowing is specified in any such notice,
then the requested Borrowing shall be an ABR Borrowing. If no Interest Period
with respect to any Eurodollar Borrowing is specified in any such notice, then
the Borrower shall be deemed to have selected an Interest Period of one 

 

30

 

month’s duration. The Administrative Agent
shall promptly advise the applicable Lenders of any notice given pursuant to
this Section 2.03 (and the contents thereof), and of each Lender’s portion
of the requested Borrowing.

 

SECTION 2.04.  Evidence of Debt; Repayment of Loans.  (a) 
The Borrower hereby unconditionally promises to pay to the Administrative Agent
for the account of each Lender (i) the principal amount of each Term Loan
of such Lender as provided in Section 2.11 and (ii) the then unpaid
principal amount of each Revolving Loan of such Lender on the Revolving Credit
Maturity Date.

 

(b)  Each Lender shall maintain in
accordance with its usual practice an account or accounts evidencing the
indebtedness of the Borrower to such Lender resulting from each Loan made by
such Lender from time to time, including the amounts of principal and interest
payable and paid to such Lender from time to time under this Agreement.

 

(c)  The Administrative Agent shall
maintain accounts in which it will record (i) the amount of each Loan made
hereunder, the Class and Type thereof and, if applicable, the Interest
Period applicable thereto, (ii) the amount of any principal or interest
due and payable or to become due and payable from the Borrower to each Lender
hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder from the Borrower or any Guarantor and each Lender’s share
thereof.

 

(d)  The entries made in the accounts
maintained pursuant to paragraphs (b) and (c) above shall
be prima facie evidence of the
existence and amounts of the obligations therein recorded; provided, however,
that the failure of any Lender or the Administrative Agent to maintain such
accounts or any error therein shall not in any manner affect the obligations of
the Borrower to repay the Loans in accordance with their terms.

 

(e)  Any Lender may request that Loans
made by it hereunder be evidenced by a promissory note.  In such event, the Borrower shall execute and
deliver to such Lender a promissory note payable to such Lender and its
registered assigns substantially in the form of Exhibit F-1 or F-2, as
applicable. Notwithstanding any other provision of this Agreement, in the event
any Lender shall request and receive such a promissory note, the interests
represented by such note shall at all times (including after any assignment of
all or part of such interests pursuant to Section 9.04) be represented by
one or more promissory notes payable to the payee named therein or its
registered assigns.

 

SECTION 2.05.  Fees.  (a)  The Borrower
agrees to pay to each Lender, through the Administrative Agent, on the last
Business Day of March, June, September and December in each year,
beginning with the last Business Day of June 2010, and on each date on
which the Revolving Credit Commitment of such Lender shall expire or be
terminated as provided herein, a facility fee (a “Facility Fee”) equal to 0.75% per annum
on the daily amount (whether used or unused) of the Revolving Credit Commitment
of 

 

31

 

such Lender during the preceding quarter (or
other period commencing with the date of this Agreement or ending with the
Revolving Credit Maturity Date or the date on which the Revolving Credit
Commitment of such Lender shall expire or be terminated). Notwithstanding the
foregoing, if any Revolving Credit Exposure remains outstanding following any
expiration or termination of the Revolving Credit Commitments as contemplated
by the preceding sentence, the Facility Fees shall continue to accrue on such
Revolving Credit Exposure for so long as such Revolving Credit Exposure remains
outstanding and shall be payable on demand. 
In addition, the Facility Fees otherwise payable to any Defaulting
Lender in respect of the unused portion of such Defaulting Lender’s Revolving
Credit Commitment shall not be payable for so long as, and with respect to the
period during which, such Lender is a Defaulting Lender.  All Facility Fees shall be computed on the
basis of the actual number of days elapsed in a year of 360 days.

 

(b)  The Borrower agrees to pay to the
Administrative Agent, for its own account, the administrative fees set forth in
the Fee Letter at the times and in the amounts specified therein (the “Administrative Agent Fees”).

 

(c)  The Borrower agrees to pay (i) to
each Revolving Credit Lender, through the Administrative Agent, on the last
Business Day of March, June, September and December of each year,
beginning with the last Business Day of June 2010, and on the date on
which the Revolving Credit Commitment of such Lender shall be terminated as
provided herein, a fee (an “L/C Participation Fee”) calculated on such Lender’s Pro Rata Percentage of the daily
aggregate L/C Exposure (excluding the portion thereof attributable to
unreimbursed L/C Disbursements) during the preceding quarter (or shorter period
commencing with the date hereof or ending with the Revolving Credit Maturity
Date or the date on which all Letters of Credit have been canceled or have
expired and the Revolving Credit Commitments of all Lenders shall have been
terminated) at a rate per annum equal to the Applicable Percentage from time to
time used to determine the interest rate on Revolving Credit Borrowings
comprised of Eurodollar Loans pursuant to Section 2.06, and (ii) to
the Issuing Bank on the last Business Day of March, June, September and December of
each year, with respect to each Letter of Credit, a fronting fee equal to 0.25%
per annum on the outstanding face amount of the Letter of Credit issued,
together with the standard issuance and drawing fees specified from time to
time by the Issuing Bank (the “Issuing Bank Fees”).
All L/C Participation Fees and Issuing Bank Fees shall be computed on the basis
of the actual number of days elapsed in a year of 360 days.  For purposes of determining the amount of the
L/C Participation Fees with respect to any Alternative Currency Letter of
Credit, the L/C Exposure shall be determined by the Administrative Agent using
the Exchange Rates in effect at approximately 11:00 a.m., New York City
time, on the date that is two Business Days before the payment of the L/C
Participation Fee.

 

(d)  All Fees shall be paid on the dates
due, in immediately available funds, to the Administrative Agent for
distribution, if and as appropriate, among the 

 

32

 

Lenders, except that the Issuing Bank Fees shall be paid directly to
the Issuing Bank. Once paid, none of the Fees shall be refundable under any
circumstances.

 

SECTION 2.06.  Interest on Loans.  (a) 
Subject to the provisions of Section 2.07, the Loans comprising each
ABR Borrowing shall bear interest (computed on the basis of the actual
number of days elapsed over a year of 360 days and calculated from and
including the date of such Borrowing to but excluding the date of repayment
thereof) at a rate per annum equal to the Alternate Base Rate plus the
Applicable Percentage in effect from time to time.

 

(b)  Subject to the provisions of Section 2.07,
the Loans comprising each Eurodollar Borrowing shall bear interest (computed on
the basis of the actual number of days elapsed over a year of 360 days) at
a rate per annum equal to the Adjusted LIBO Rate for the Interest Period in
effect for such Borrowing plus the Applicable Percentage in effect from time to
time.

 

(c)  Interest on each Loan shall be
payable on the Interest Payment Dates applicable to such Loan except as
otherwise provided in this Agreement. The applicable Alternate Base Rate or
Adjusted LIBO Rate for each Interest Period or day within an Interest Period,
as the case may be, shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.

 

SECTION 2.07.  Default Interest.  Any amount (whether of principal, interest,
Fees or otherwise) not paid when due hereunder or any other Loan Document shall
bear interest, to the extent permitted by law (after as well as before
judgment), (a) in the case of principal, at the rate otherwise applicable
to such Loan pursuant to Section 2.06 plus 2.00% per annum and (b) in
all other cases, at a rate per annum (computed on the basis of the actual
number of days elapsed over a year of 360 days) equal to the rate that would be
applicable to an ABR Revolving Loan plus 2.00% per annum.

 

SECTION 2.08.  Alternate Rate of Interest.  In the event, and on each occasion, that on
the day two Business Days prior to the commencement of any Interest Period for
a Eurodollar Borrowing the Administrative Agent shall have determined that
dollar deposits in the principal amounts of the Loans comprising such Borrowing
are not generally available in the London interbank market, or that the rates
at which such dollar deposits are being offered will not adequately and fairly
reflect the cost to any Lender of making or maintaining its Eurodollar Loan
during such Interest Period, or that reasonable means do not exist for
ascertaining the Adjusted LIBO Rate, the Administrative Agent shall, as soon as
practicable thereafter, give written or fax notice of such determination to the
Borrower and the Lenders. In the event of any such determination, until the
Administrative Agent shall have advised the Borrower and the Lenders that the
circumstances giving rise to such notice no longer exist, any request by the
Borrower for a Eurodollar Borrowing pursuant to Section 2.03 or 2.10 shall
be deemed to be a request for an ABR Borrowing.  Each determination by the Administrative
Agent under this Section 2.08 shall be conclusive absent manifest error.

 

33

 

SECTION 2.09.  Termination and Reduction of Commitments.  (a) 
The Term Loan Commitments shall automatically terminate upon the making of the
Term Loans on the Closing Date. The Revolving Credit Commitments shall
automatically terminate on the Revolving Credit Maturity Date.  The L/C Commitment shall automatically
terminate on the earlier to occur of (i) the termination of the Revolving
Credit Commitments and (ii) the date 30 days prior to the Revolving Credit
Maturity Date. Notwithstanding the foregoing, all the Commitments shall
automatically terminate at 5:00 p.m., New York City time, on May 21,
2010 if the initial Credit Event shall not have occurred by such time.

 

(b)  Upon at least three Business Days’
prior irrevocable written or fax notice to the Administrative Agent, the
Borrower may at any time in whole permanently terminate, or from time to time
in part permanently reduce, the Term Loan Commitments or the Revolving Credit
Commitments; provided, however,
that (i) each partial reduction of the Term Loan Commitments or the
Revolving Credit Commitments shall be in an integral multiple of $1,000,000 and
in a minimum amount of $5,000,000 and (ii) the Total Revolving Credit
Commitment shall not be reduced to an amount that is less than the Aggregate
Revolving Credit Exposure at the time. 
The Administrative Agent shall promptly advise the Lenders of any notice
given (and the contents thereof) pursuant to this Section 2.09.

 

(c)  Each reduction in the Term Loan
Commitments or the Revolving Credit Commitments hereunder shall be made ratably
among the Lenders in accordance with their respective applicable Commitments.
The Borrower shall pay to the Administrative Agent for the account of the
applicable Lenders, on the date of each termination or reduction, the Facility
Fees on the amount of the Commitments so terminated or reduced accrued to but
excluding the date of such termination or reduction.

 

SECTION 2.10.  Conversion and Continuation of Borrowings.  The Borrower shall have the right at any time
upon prior irrevocable written notice to the Administrative Agent (a) not
later than 12:00 (noon), New York City time, on the day of conversion, to
convert any Eurodollar Borrowing into an ABR Borrowing, (b) not later than
12:00 (noon), New York City time, three Business Days prior to conversion
or continuation, to convert any ABR Borrowing into a Eurodollar Borrowing or to
continue any Eurodollar Borrowing as a Eurodollar Borrowing for an additional
Interest Period, and (c) not later than 12:00 (noon), New York City
time, three Business Days prior to conversion, to convert the Interest Period
with respect to any Eurodollar Borrowing to another permissible Interest
Period, subject in each case to the following:

 

(i) each conversion or continuation
shall be made pro rata among the Lenders in accordance with the respective
principal amounts of the Loans comprising the converted or continued Borrowing;

 

(ii) if less than all the outstanding
principal amount of any Borrowing shall be converted or continued, then each
resulting Borrowing shall satisfy the limitations

 

34

 

specified in Sections 2.02(a) and 2.02(b) regarding the
principal amount and maximum number of Borrowings of the relevant Type;

 

(iii) each conversion shall be effected
by each Lender and the Administrative Agent by recording for the account of
such Lender the new Loan of such Lender resulting from such conversion and
reducing the Loan (or portion thereof) of such Lender being converted by an
equivalent principal amount; accrued interest on any Eurodollar Loan (or
portion thereof) being converted shall be paid by the Borrower at the time of
conversion;

 

(iv) if any Eurodollar Borrowing is
converted at a time other than the end of the Interest Period applicable
thereto, the Borrower shall pay, upon demand, any amounts due to the Lenders
pursuant to Section 2.16;

 

(v) any portion of a Borrowing maturing
or required to be repaid in less than one month may not be converted into or
continued as a Eurodollar Borrowing;

 

(vi) any portion of a Eurodollar
Borrowing that cannot be converted into or continued as a Eurodollar Borrowing
by reason of the immediately preceding clause shall be automatically converted
at the end of the Interest Period in effect for such Borrowing into an
ABR Borrowing;

 

(vii) no Interest Period may be selected
for any Eurodollar Term Borrowing that would end later than a Repayment Date
occurring on or after the first day of such Interest Period if, after giving
effect to such selection, the aggregate outstanding amount of (A) the
Eurodollar Term Borrowings comprised of Term Loans with Interest Periods ending
on or prior to such Repayment Date and (B) the ABR Term Borrowings
comprised of Term Loans would not be at least equal to the principal amount of
Term Borrowings to be paid on such Repayment Date; and

 

(viii) upon notice to the Borrower from
the Administrative Agent given at the request of the Required Lenders, after
the occurrence and during the continuance of a Default or Event of Default, no
outstanding Loan may be converted into, or continued as, a Eurodollar Loan.

 

Each notice pursuant to this
Section 2.10 shall be irrevocable and shall refer to this Agreement and
specify (i) the identity and amount of the Borrowing that the Borrower
requests be converted or continued, (ii) whether such Borrowing is to be
converted to or continued as a Eurodollar Borrowing or an ABR Borrowing, (iii) if
such notice requests a conversion, the date of such conversion (which shall be
a Business Day) and (iv) if such Borrowing is to be converted to or
continued as a Eurodollar Borrowing, the Interest Period with respect thereto.
If no Interest Period is specified in any such notice with respect to any
conversion to or continuation as a Eurodollar Borrowing, the Borrower shall be
deemed to have selected an Interest Period of one month’s duration. The
Administrative Agent shall promptly advise the Lenders of any notice given (and
the contents thereof) pursuant to this Section 2.10 and of each Lender’s
portion of any 

 

35

 

converted
or continued Borrowing. If the Borrower shall not have given notice in
accordance with this Section 2.10 to continue any Borrowing into a
subsequent Interest Period (and shall not otherwise have given notice in
accordance with this Section 2.10 to convert such Borrowing), such
Borrowing shall, at the end of the Interest Period applicable thereto (unless
repaid pursuant to the terms hereof), automatically be converted into an ABR
Borrowing.

 

SECTION 2.11.  Repayment of Term Borrowings.  (a) 
The Borrower shall pay to the Administrative Agent, for the account of the
Lenders, on the dates set forth below, or if any such date is not a Business
Day, on the next preceding Business Day (each such date being called a “Repayment Date”), a
principal amount of the Term Loans (as adjusted from time to time pursuant to
Sections 2.11(b), 2.12 and 2.13(f)) equal to the amount set forth below
for such date, together in each case with accrued and unpaid interest on the
principal amount to be paid to but excluding the date of such payment:

 

	
  Repayment
  Date

  	
   

  	
  Amount

  	
   

  
	
  November 30, 2010

  	
   

  	
  $

  	
  6,250,000

  	
   

  
	
  May 31, 2011

  	
   

  	
  6,250,000

  	
   

  
	
  November 30, 2011

  	
   

  	
  12,500,000

  	
   

  
	
  May 31, 2012

  	
   

  	
  12,500,000

  	
   

  
	
  November 30, 2012

  	
   

  	
  12,500,000

  	
   

  
	
  May 31, 2013

  	
   

  	
  12,500,000

  	
   

  
	
  November 30, 2013

  	
   

  	
  12,500,000

  	
   

  
	
  May 31, 2014

  	
   

  	
  12,500,000

  	
   

  
	
  November 30, 2014

  	
   

  	
  12,500,000

  	
   

  
	
  May 31, 2015

  	
   

  	
  12,500,000

  	
   

  
	
  November 30, 2015

  	
   

  	
  12,500,000

  	
   

  
	
  Term Loan Maturity Date

  	
   

  	
  125,000,000

  	
   

  
					

 

(b)  In the event and on each occasion
that the Term Loan Commitments shall be reduced or shall expire or terminate
other than as a result of the making of a Term Loan, the installments payable
on each Repayment Date shall be reduced pro rata by an aggregate amount equal
to the amount of such reduction, expiration or termination.

 

(c)  To the extent not previously paid,
all Term Loans shall be due and payable on the Term Loan Maturity Date,
together with accrued and unpaid interest on the principal amount to be paid to
but excluding the date of payment.

 

(d)  All repayments pursuant to this Section 2.11
shall be subject to Section 2.16, but shall otherwise be without premium
or penalty.

 

SECTION 2.12.  Optional Prepayment.  (a)  The
Borrower shall have the right at any time and from time to time to prepay any
Borrowing, in whole or in part, upon at least three Business Days’ prior
written or fax notice (or telephone notice promptly confirmed by written or fax
notice) in the case of Eurodollar Loans, or written or fax 

 

36

 

notice (or telephone notice promptly
confirmed by written or fax notice) on the day of prepayment in the case of ABR
Loans, to the Administrative Agent before 12:00 (noon), New York City
time; provided, however, that each partial prepayment
shall be in an amount that is an integral multiple of $1,000,000 and not less
than $2,000,000.  The Administrative
Agent shall promptly advise the Lenders of any notice given (and the contents
thereof) pursuant to this Section 2.12.

 

(b)  Optional prepayments of Term Loans
shall be applied to the installments of principal due in respect of the Term
Loans under Section 2.11(a) as directed by the Borrower.

 

(c)  Each notice of prepayment shall
specify the prepayment date (which shall be a Business Day) and the principal
amount of each Borrowing (or portion thereof) to be prepaid, shall be irrevocable
(unless such notice is conditioned upon a refinancing in full of the Credit
Facilities), and shall commit the Borrower to prepay such Borrowing by the
amount stated therein on the date stated therein. All prepayments under this Section 2.12
shall be subject to Section 2.16 but otherwise without premium or penalty.
All prepayments under this Section 2.12 (other than prepayments of ABR
Revolving Loans that are not made in connection with the termination or
permanent reduction of the Revolving Credit Commitments) shall be accompanied
by accrued and unpaid interest on the principal amount to be prepaid to but
excluding the date of payment.

 

SECTION 2.13.  Mandatory Prepayments.  (a) 
In the event of any termination of all the Revolving Credit Commitments, the
Borrower shall, on the date of such termination, repay or prepay all its
outstanding Revolving Credit Borrowings and replace or cause to be canceled (or
make other arrangements satisfactory to the Administrative Agent and the
Issuing Bank with respect to) all outstanding Letters of Credit. If, after
giving effect to any partial reduction of the Revolving Credit Commitments or
on any Reset Date, the Aggregate Revolving Credit Exposure would exceed the
Total Revolving Credit Commitment, then the Borrower shall, on the date of such
reduction or on such Reset Date, repay or prepay Revolving Credit Borrowings
and, after the Revolving Credit Borrowings shall have been repaid or prepaid in
full, replace or cause to be canceled (or make other arrangements satisfactory
to the Administrative Agent and the Issuing Bank with respect to) Letters of
Credit in an amount sufficient to eliminate such excess.

 

(b)  Not later than the third Business
Day following the receipt of Net Cash Proceeds in respect of any Asset Sale,
the Borrower shall apply 100% of the Net Cash Proceeds received with respect
thereto to prepay outstanding Term Loans in accordance with Section 2.13(f).

 

(c)  If, at the time of any Equity
Issuance, the Leverage Ratio (after giving effect to such Equity Issuance and
the proposed use of the proceeds thereof) would be greater than 2.00 to 1.00,
the Borrower shall, substantially simultaneously with (and in any event not
later than the third Business Day following) the receipt of Net Cash Proceeds
in respect of such Equity Issuance, apply an amount equal to 100% of the Net
Cash Proceeds therefrom (or such lesser percentage as shall be necessary 

 

37

 

to reduce the Leverage Ratio to 2.00 to 1.00, after giving effect to
such Equity Issuance and the proposed use of the proceeds thereof) to prepay
outstanding Term Loans in accordance with Section 2.13(f).

 

(d)  No later than the earlier of (i) 120
days after the end of each fiscal year of the Borrower, beginning with the
fiscal year ending on December 31, 2011, and (ii) the third Business
Day after the date on which the financial statements with respect to such
period are delivered pursuant to Section 5.04(a), the Borrower shall
prepay outstanding Term Loans in accordance with Section 2.13(f) in
an aggregate principal amount equal to the excess (if any) of (x) 75% of
Excess Cash Flow for the fiscal year then ended minus (y) Voluntary
Prepayments made during such fiscal year; provided that
such percentage shall be reduced to 50% if the Leverage Ratio as of the end of
such fiscal year was equal to or less than 2.00 to 1.00.

 

(e)  In the event that the Borrower or
any Subsidiary shall receive Net Cash Proceeds from the issuance or incurrence
of Indebtedness for money borrowed of the Borrower or any Subsidiary (other
than any cash proceeds from the issuance of Indebtedness for money borrowed
permitted pursuant to Section 6.01), the Borrower shall, substantially
simultaneously with (and in any event not later than the third Business Day
next following) the receipt of such Net Cash Proceeds by the Borrower or such
Subsidiary, apply an amount equal to 100% of such Net Cash Proceeds to prepay
outstanding Term Loans in accordance with Section 2.13(f).

 

(f)  All amounts required to be paid
pursuant to this Section 2.13 shall be applied to the installments of
principal in respect of the Term Loans under Section 2.11(a) as
directed by the Borrower.

 

(g)  The Borrower shall deliver to the
Administrative Agent, at the time of each prepayment required under this Section 2.13,
(i) a certificate signed by a Financial Officer of the Borrower setting
forth in reasonable detail the calculation of the amount of such prepayment and
(ii) to the extent practicable, at least three Business Days prior written
notice of such prepayment. Each notice of prepayment shall specify the
prepayment date, the Type of each Loan being prepaid and the principal amount
of each Loan (or portion thereof) to be prepaid;  The Administrative Agent shall promptly
advise the Lenders of any notice given (and the contents thereof) pursuant to
this Section 2.13.  All prepayments
of Borrowings under this Section 2.13 shall be subject to Section 2.16,
but shall otherwise be without premium or penalty, and shall be accompanied by
accrued and unpaid interest on the principal amount to be prepaid to but
excluding the date of payment.

 

SECTION 2.14.  Reserve Requirements; Change in Circumstances.  (a)   
 Notwithstanding any other provision of this Agreement, if any
Change in Law shall impose, modify or deem applicable any reserve, special
deposit or similar requirement against assets of, deposits with or for the
account of or credit extended by any Lender or the Issuing Bank (except any
such reserve requirement which is reflected in the Adjusted LIBO Rate) or would
impose on such Lender or the Issuing Bank or the London interbank market any
other condition affecting this Agreement or Eurodollar Loans made 

 

38

 

by such Lender or any Letter of Credit or
participation therein, and the result of any of the foregoing shall be to
increase the cost to such Lender of making or maintaining any Eurodollar Loan
or increase the cost to any Lender or the Issuing Bank of issuing or
maintaining any Letter of Credit or purchasing or maintaining a participation
therein or to reduce the amount of any sum received or receivable by such
Lender or the Issuing Bank hereunder (whether of principal, interest or
otherwise) by an amount deemed by such Lender or the Issuing Bank to be
material, then the Borrower will pay to such Lender or the Issuing Bank, as the
case may be, upon demand such additional amount or amounts as will compensate
such Lender or the Issuing Bank, as the case may be, for such additional costs
incurred or reduction in the amount received or receivable.

 

(b)  If any Lender or the Issuing Bank
shall have determined that any Change in Law regarding capital adequacy has or
would have the effect of reducing the rate of return on such Lender’s or the
Issuing Bank’s capital or on the capital of such Lender’s or the Issuing Bank’s
holding company, if any, as a consequence of this Agreement or the Loans made
or participations in Letters of Credit purchased by such Lender pursuant hereto
or the Letters of Credit issued by the Issuing Bank pursuant hereto to a level
below that which such Lender or the Issuing Bank or such Lender’s or the
Issuing Bank’s holding company could have achieved but for such Change in Law
(taking into consideration such Lender’s or the Issuing Bank’s policies and the
policies of such Lender’s or the Issuing Bank’s holding company with respect to
capital adequacy) by an amount deemed by such Lender or the Issuing Bank to be
material, then from time to time the Borrower shall pay to such Lender or the
Issuing Bank, as the case may be, such additional amount or amounts as will
compensate such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s
holding company for any such reduction suffered.

 

(c)  A certificate of a Lender or the
Issuing Bank setting forth in reasonable detail the basis for and the
calculation of the amount or amounts necessary to compensate such Lender or the
Issuing Bank or its holding company, as applicable, as specified in
paragraph (a) or (b) above shall be delivered to the Borrower
(with a copy to the Administrative Agent) and shall be conclusive absent
manifest error. The Borrower shall pay such Lender or the Issuing Bank the
amount shown as due on any such certificate delivered by it within 10 days
after its receipt of the same.

 

(d)  Failure or delay on the part of any
Lender or the Issuing Bank to demand compensation for any increased costs or
reduction in amounts received or receivable or reduction in return on capital
shall not constitute a waiver of such Lender’s or the Issuing Bank’s right to
demand such compensation; provided that the Borrower shall not be under any
obligation to compensate any Lender or the Issuing Bank under paragraph (a) or
(b) above with respect to increased costs or reductions with respect to
any period prior to the date that is 120 days prior to such request if
such Lender or the Issuing Bank knew or could reasonably have been expected to
know of the circumstances giving rise to such increased costs or reductions and
of the fact that such circumstances would result in a claim for increased
compensation by reason of such increased costs or reductions; provided further
that the foregoing limitation shall not apply to any increased costs or 

 

39

 

reductions arising out of the retroactive application of any Change in
Law within such 120-day period. The protection of this Section shall be
available to each Lender and the Issuing Bank regardless of any possible
contention of the invalidity or inapplicability of the Change in Law that shall
have occurred or been imposed.

 

SECTION 2.15.  Change in Legality.  (a) 
Notwithstanding any other provision of this Agreement, if (x) any
Change in Law shall make it unlawful for any Lender to make or maintain any
Eurodollar Loan or to give effect to its obligations as contemplated hereby
with respect to any Eurodollar Loan, (y) any Change in Law shall make it
unlawful for any Issuing Bank to issue Letters of Credit denominated in an
Alternative Currency, or (z) there shall have occurred any change in
national or international financial, political or economic conditions
(including the imposition of or any change in exchange controls) or currency
exchange rates which would make it impracticable for any Issuing Bank to issue
Letters of Credit denominated in such Alternative Currency, then, by written
notice to the Borrower and to the Administrative Agent:

 

(i) such Lender may declare that
Eurodollar Loans will not thereafter (for the duration of such unlawfulness) be
made by such Lender hereunder (or be continued for additional Interest Periods)
and ABR Loans will not thereafter (for such duration) be converted into
Eurodollar Loans, whereupon any request for a Eurodollar Borrowing (or to
convert an ABR Borrowing to a Eurodollar Borrowing or to continue a Eurodollar
Borrowing for an additional Interest Period) shall, as to such Lender only, be
deemed a request for an ABR Loan (or a request to continue an ABR Loan as such
for an additional Interest Period or to convert a Eurodollar Loan into an ABR
Loan, as the case may be), unless such declaration shall be subsequently
withdrawn;

 

(ii) such Lender may require that all
outstanding Eurodollar Loans made by it be converted to ABR Loans, in which
event all such Eurodollar Loans shall be automatically converted to ABR Loans
as of the effective date of such notice as provided in paragraph (b) below;
and

 

(iii) in the case of any such change
affecting an Issuing Bank’s ability to issue Letters of Credit denominated in
an Alternative Currency, such Issuing Bank may declare that Letters of Credit
will not thereafter be issued in the affected Alternative Currency or
Currencies, whereupon the affected Alternative Currency or Currencies shall be
deemed (for the duration of such unlawfulness and with respect to such Issuing
Bank only) not to constitute an Alternative Currency.

 

In the event any Lender
shall exercise its rights under (i) or (ii) above, all payments and
prepayments of principal that would otherwise have been applied to repay the
Eurodollar Loans that would have been made by such Lender or the converted
Eurodollar Loans of such Lender shall instead be applied to repay the ABR Loans
made by such Lender in lieu of, or resulting from the conversion of, such Eurodollar
Loans.

 

(b)  For purposes of this Section 2.15,
a notice to the Borrower by any Lender shall be effective as to each Eurodollar
Loan made by such Lender, if 

 

40

 

lawful, on the last day of the Interest Period then applicable to such
Eurodollar Loan; in all other cases such notice shall be effective on the date
of receipt by the Borrower.

 

SECTION 2.16.  Indemnity. 
The Borrower shall indemnify each Lender against any loss or expense
that such Lender may sustain or incur as a consequence of (a) any event,
other than a default by such Lender in the performance of its obligations
hereunder, which results in (i) such Lender receiving or being deemed to
receive any amount on account of the principal of any Eurodollar Loan prior to
the end of the Interest Period in effect therefor, (ii) the conversion of
any Eurodollar Loan to an ABR Loan, or the conversion of the Interest Period
with respect to any Eurodollar Loan, in each case other than on the last day of
the Interest Period in effect therefor, or (iii) any Eurodollar Loan to be
made by such Lender (including any Eurodollar Loan to be made pursuant to a
conversion or continuation under Section 2.10) not being made after notice
of such Loan shall have been given by the Borrower hereunder (any of the events
referred to in this clause (a) being called a “Breakage Event”) or (b) any
default in the making of any payment or prepayment required to be made
hereunder. In the case of any Breakage Event, such loss shall include an amount
equal to the excess, as reasonably determined by such Lender, of (i) its
cost of obtaining funds for the Eurodollar Loan that is the subject of such
Breakage Event for the period from the date of such Breakage Event to the last
day of the Interest Period in effect (or that would have been in effect) for
such Loan over (ii) the amount of interest likely to be realized by such
Lender in redeploying the funds released or not utilized by reason of such
Breakage Event for such period. A certificate of any Lender setting forth in
reasonable detail the basis for and the calculation of the amount or amounts
which such Lender is entitled to receive pursuant to this Section 2.16
shall be delivered to the Borrower (with a copy to the Administrative Agent)
and shall be conclusive absent manifest error.

 

SECTION 2.17.  Pro Rata Treatment.  Subject to the express provisions of this
Agreement which require, or permit, differing payments to be made to
non-Defaulting Lenders as opposed to Defaulting Lenders, and as required under Section 2.15,
each Borrowing, each payment or prepayment of principal of any Borrowing, each
payment of interest on the Loans, each payment of the Facility Fees, each
reduction of the Term Loan Commitments or the Revolving Credit Commitments and
each conversion of any Borrowing to or continuation of any Borrowing as a
Borrowing of any Type shall be allocated pro rata among the Lenders in
accordance with their respective applicable Commitments (or, if such
Commitments shall have expired or been terminated, in accordance with the
respective principal amounts of their outstanding Loans). Each Lender agrees
that in computing such Lender’s portion of any Borrowing to be made hereunder,
the Administrative Agent may, in its discretion, round each Lender’s percentage
of such Borrowing to the next higher or lower whole dollar amount.

 

SECTION 2.18.  Sharing of Setoffs.  Each Lender agrees that if it shall, through
the exercise of a right of banker’s lien, setoff or counterclaim against the Borrower
or any other Loan Party, or pursuant to a secured claim under Section 506
of Title 11 of the United States Code or other security or interest
arising from, or in lieu of, such secured claim, received by such Lender under
any applicable bankruptcy, insolvency or other 

 

41

 

similar law or otherwise, or by any other
means, obtain payment (voluntary or involuntary) in respect of any Loan or
Loans or L/C Disbursement as a result of which the unpaid principal portion of
its Loans and participations in L/C Disbursements shall be proportionately less
than the unpaid principal portion of the Loans and participations in L/C
Disbursements of any other Lender, it shall be deemed simultaneously to have
purchased from such other Lender at face value, and shall promptly pay to such
other Lender the purchase price for, a participation in the Loans and L/C
Exposure of such other Lender, so that the aggregate unpaid principal amount of
the Loans and L/C Exposure and participations in Loans and L/C Exposure held by
each Lender shall be in the same proportion to the aggregate unpaid principal
amount of all Loans and L/C Exposure then outstanding as the principal amount
of its Loans and L/C Exposure prior to such exercise of banker’s lien, setoff
or counterclaim or other event was to the principal amount of all Loans and L/C
Exposure outstanding prior to such exercise of banker’s lien, setoff or
counterclaim or other event; provided,
however, that (i) if any
such purchase or purchases or adjustments shall be made pursuant to this Section 2.18
and the payment giving rise thereto shall thereafter be recovered, such
purchase or purchases or adjustments shall be rescinded to the extent of such
recovery and the purchase price or prices or adjustment restored without
interest and (ii) the provisions of this Section 2.18 shall not be
construed to apply to any payment made by the Borrower pursuant to and in
accordance with the express terms of this Agreement or any payment obtained by
a Lender as consideration for the assignment of or sale of a participation in
any of its Loans. The Borrower expressly consents to the foregoing arrangements
and agrees that any Lender holding a participation in a Loan or L/C
Disbursement deemed to have been so purchased may exercise any and all rights
of banker’s lien, setoff or counterclaim with respect to any and all moneys
owing by the Borrower to such Lender by reason thereof as fully as if such
Lender had made a Loan directly to the Borrower in the amount of such
participation.

 

SECTION 2.19.  Payments.  (a)  The Borrower
shall make each payment (including principal of or interest on any Borrowing or
any L/C Disbursement or any Fees or other amounts) hereunder and under any
other Loan Document not later than 12:00 (noon), New York City time, on
the date when due in immediately available dollars, without setoff, defense or
counterclaim. Each such payment (other than Issuing Bank Fees, which shall be
paid directly to the Issuing Bank) shall be made to the Administrative Agent at
its offices at Eleven Madison Avenue, New York, NY 10010. All payments received
by the Administrative Agent after 12:00 (noon) New York City time, shall be
deemed received on the next Business Day (in the Administrative Agent’s sole
discretion) and any applicable interest shall continue to accrue.  The Administrative Agent shall promptly
distribute to each Lender any payments received by the Administrative Agent on
behalf of such Lender.  Each payment to
be made by the Borrower hereunder (other than in respect of L/C Disbursements
denominated in an Alternative Currency and Issuing Bank Fees with respect to
Letters of Credit denominated in an Alternative Currency, which shall be made
in the applicable Alternative Currency) shall be made in dollars.

 

(b)  Except as otherwise expressly
provided herein, whenever any payment (including principal of or interest on
any Borrowing or any Fees or other amounts) 

 

42

 

hereunder or under any other Loan Document shall become due, or
otherwise would occur, on a day that is not a Business Day, such payment may be
made on the next succeeding Business Day, and such extension of time shall in
such case be included in the computation of interest or Fees, if applicable.

 

(c)  Unless the Administrative Agent
shall have received notice from the Borrower prior to the date on which any
payment is due to the Administrative Agent for the account of the Lenders or
the Issuing Bank hereunder that the Borrower will not make such payment, the
Administrative Agent may assume that the Borrower has made such payment on such
date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders or the Issuing Bank, as the case may be, the amount due.  In such event, if the Borrower does not in
fact make such payment, then each of the Lenders or the Issuing Bank, as the
case may be, severally agrees to repay to the Administrative Agent forthwith on
demand the amount so distributed to such Lender, and to pay interest thereon,
for each day from and including the date such amount is distributed to it to
but excluding the date of payment to the Administrative Agent, at a rate
determined by the Administrative Agent to represent its cost of overnight or short-term
funds (which determination shall be conclusive absent manifest error).

 

SECTION 2.20.  Taxes.  (a)  Except where
required by a Governmental Authority, any and all payments by or on account of
any obligation of the Borrower or any other Loan Party hereunder or under any
other Loan Document shall be made free and clear of and without deduction for
any Taxes.  If the Administrative Agent
or any Loan Party determines, in its sole discretion exercised in good faith,
that it is so required to withhold Taxes, then such Administrative Agent or
Loan Party may so withhold and shall timely pay the full amount of withheld
Taxes to the relevant Governmental Authority in accordance with applicable
law.  If such Taxes are Indemnified Taxes
or Other Taxes, 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, Lender
or Issuing Bank (as the case may be) receives an amount equal to the sum it
would have received had no such deductions been made, (ii) the Borrower or
such Loan Party shall make such deductions and (iii) the Borrower or such
Loan Party shall pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.

 

(b)  In addition, the Borrower shall pay
any Other Taxes to the relevant Governmental Authority in accordance with
applicable law.

 

(c)  The Borrower shall indemnify the
Administrative Agent, each Lender and the Issuing Bank, within 10 days after
written demand therefor, for the full amount of any Indemnified Taxes or Other
Taxes paid by the Administrative Agent, such Lender or the Issuing Bank, as the
case may be, on or with respect to any payment by or on account of any
obligation of the Borrower or any other Loan Party hereunder or under any other
Loan Document (including Indemnified Taxes or Other Taxes imposed or asserted
on or attributable to amounts payable under this Section) and any penalties,
interest and reasonable expenses arising therefrom 

 

43

 

or with respect thereto, whether or not such Indemnified Taxes or Other
Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority.  A certificate
setting forth in reasonable detail the basis for and the calculation of the
amount of such payment or liability delivered to the Borrower (with a copy to
the Administrative Agent) by a Lender or the Issuing Bank, or by the
Administrative Agent on behalf of itself, a Lender or the Issuing Bank, shall
be conclusive absent manifest error.

 

(d)  Each Lender shall severally
indemnify the Administrative Agent and any Loan Party, within 10 days after
written demand therefor, for the full amount of any Excluded Taxes attributable
to such Lender that are paid by the Administrative Agent or any Loan Party on
or with respect to any payment by or on account of any obligation of the
Borrower or any other Loan Party hereunder or under any other Loan Document and
any penalties, interest and reasonable expenses arising therefrom or with
respect thereto, whether or not such Excluded 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 Lender by the Administrative Agent shall be
conclusive absent manifest error.

 

(e)  As soon as practicable after any
payment of Indemnified Taxes or Other Taxes by the Borrower or any other Loan
Party to a Governmental Authority, the Borrower shall deliver where available
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.

 

(f)  Each Foreign Lender and
Administrative Agent that is not a United States person as that term is defined
in Section 7701(a)(30) of the Code, hereby agrees that it shall, no later
than the Closing Date or, in the case of a Lender that becomes a party hereto
after the Closing Date, no later than the date such Foreign Lender becomes a
party hereto, or, in the case where a Foreign Lender changes its applicable
lending office by designating a different lending office (a “New Lending Office”), no
later than the date such Lender designates the New Lending Office, and from
time to time thereafter upon the reasonable request of the Borrower or the
Administrative Agent, but only if such Foreign Lender and/or the Administrative
Agent, as applicable, is legally able to do so, deliver to the Borrower and the
Administrative Agent either (i) two accurate, complete and signed copies
of either (x) United States Internal Revenue Service Form W-8ECI or
successor form, or (y) United States Internal Revenue Service Form W-8BEN
or successor form, in each case, indicating that such Foreign Lender or the
Administrative Agent, as applicable, is on the date of delivery thereof
entitled to receive payments of interest hereunder free from, or subject to a
reduced rate of, withholding of United States Federal income Tax or (ii) in
the case of such a Lender and/or the Administrative Agent, as applicable, that
is entitled to claim exemption from withholding of United States Federal income
Tax under Section 871(h) or Section 881(c) of the Code, (x) a
Certificate Re: Non-Bank Status (in the form of Exhibit G) and (y) two
accurate, complete and signed copies 

 

44

 

of United States or Internal Revenue Service Form W-8BEN or
successor form, or (iii) in the case of such a Lender and/or the
Administrative Agent, as applicable, that is not the beneficial owner of
payments hereunder (including a partnership or a participating Lender) (x) two
accurate, complete and signed copies of United States Internal Revenue Service Form W-8IMY
or successor form on behalf of itself and (y) the relevant forms
prescribed in clauses (i) and (ii) of this paragraph (f) that
would be required of each such beneficial owner or partner of such partnership
if such beneficial owner or partner were a Lender.  In addition, each Foreign Lender shall
deliver such forms promptly upon the obsolescence or invalidity of any form previously
delivered by such Foreign Lender and shall deliver such forms within
20 days after receipt of a written request therefor from the Borrower or
the Administrative Agent.

 

(g)  Each Lender and Administrative
Agent that is a United States person as that term is defined in Section 7701(a)(30)
of the Code hereby agrees that it shall, no later than the Closing Date or, in
the case of a Lender that becomes a party hereto after the Closing Date, no
later than the date such Lender becomes a party hereto, deliver to the Borrower
and the Administrative Agent two accurate, complete and signed copies of United
States Internal Revenue Service Form W-9 or successor form, certifying
that such Lender or Administrative Agent, as the case may be, is on the date of
delivery thereof entitled to an exemption from United States backup withholding
Tax.  Unless the Administrative Agent has
received such forms or other documents required by this Section 2.20(g),
the Borrower or the Administrative Agent, as applicable, shall withhold amounts
as required by applicable requirements of law from such payments at the
applicable statutory rate.

 

SECTION 2.21.  Assignment of Commitments Under Certain Circumstances; Duty
to Mitigate.  (a)  In the event (i) any
Lender or the Issuing Bank delivers a certificate requesting compensation
pursuant to Section 2.14, (ii) any Lender or the Issuing Bank
delivers a notice described in Section 2.15, (iii) the Borrower is
required to pay any additional amount to any Lender or the Issuing Bank or any
Governmental Authority on account of any Lender or the Issuing Bank pursuant to
Section 2.20, (iv) any Lender becomes a Defaulting Lender or (v) any
Lender refuses to consent to any amendment, waiver or other modification of any
Loan Document requested by the Borrower that requires the consent of a greater
percentage of the Lenders than the Required Lenders and such amendment, waiver
or other modification is consented to by the Required Lenders, the Borrower
may, at its sole expense and effort (including with respect to the processing
and recordation fee referred to in Section 9.04(b)), upon notice to such
Lender or the Issuing Bank, as the case may be, and the Administrative Agent,
require such Lender or the Issuing Bank to transfer and assign, without
recourse (in accordance with and subject to the restrictions contained in Section 9.04),
all of its interests, rights and obligations under this Agreement (or, in the
case of clause (v) above, all of its interests, rights and obligation with
respect to the Class of Loans or Commitments that is the subject of the
related consent, amendment, waiver or other modification) to an Eligible
Assignee that shall assume such assigned obligations (which Eligible Assignee
may be another Lender, if a Lender accepts such assignment); provided that (x) such assignment
shall not conflict with any law, rule or regulation or order of any 

 

45

 

court or other Governmental Authority having
jurisdiction, (y) the Borrower shall have received the prior written
consent of the Administrative Agent (and, if a Revolving Credit Commitment is
being assigned, of the Issuing Bank), which consents shall not unreasonably be
withheld or delayed, and (z) the Borrower or such Eligible Assignee shall
have paid to the affected Lender or the Issuing Bank in immediately available
funds an amount equal to the sum of the principal of and interest accrued to
the date of such payment on the outstanding Loans or L/C Disbursements of such
Lender or the Issuing Bank, respectively, plus all Fees and other amounts
accrued for the account of such Lender or the Issuing Bank hereunder with
respect thereto (including any amounts under Sections 2.14, 2.16 and 9.05
(as to events arising prior to the date of assignment); provided further that, if prior to any such
transfer and assignment the circumstances or event that resulted in such Lender’s
or the Issuing Bank’s claim for compensation under Section 2.14, notice
under Section 2.15 or the amounts paid pursuant to Section 2.20, as
the case may be, cease to cause such Lender or the Issuing Bank to suffer
increased costs or reductions in amounts received or receivable or reduction in
return on capital, or cease to have the consequences specified in Section 2.15,
or cease to result in amounts being payable under Section 2.20, as the
case may be (including as a result of any action taken by such Lender or the
Issuing Bank pursuant to paragraph (b) below), or if such Lender or
the Issuing Bank shall waive its right to claim further compensation under Section 2.14
in respect of such circumstances or event or shall withdraw its notice under Section 2.15
or shall waive its right to further payments under Section 2.20 in respect
of such circumstances or event or shall consent to the proposed amendment,
waiver, consent or other modification, as the case may be, then such Lender or
the Issuing Bank shall not thereafter be required to make any such transfer and
assignment hereunder.  Each Lender and
the Issuing Bank hereby grants to the Administrative Agent an irrevocable power
of attorney (which power is coupled with an interest) to execute and deliver,
on behalf of such Lender or the Issuing Bank, as the case may be, as assignor,
any Assignment and Acceptance (provided
that any Assignment and Acceptance executed and delivered by the Administrative
Agent pursuant to the power of attorney granted hereby shall be in the form of Exhibit B)
necessary to effectuate any assignment of such Lender’s or the Issuing Bank’s
interests hereunder in the circumstances contemplated by this Section 2.21(a).  The Administrative Agent shall promptly
notify the applicable Lender in respect of any Assignment and Acceptance
pursuant to this Section 2.21.

 

(b)  If (i) any Lender or the
Issuing Bank shall request compensation under Section 2.14, (ii) any
Lender or the Issuing Bank delivers a notice described in Section 2.15 or (iii) the
Borrower is required to pay any additional amount to any Lender or the Issuing
Bank or any Governmental Authority on account of any Lender or the Issuing
Bank, pursuant to Section 2.20, then such Lender or the Issuing Bank shall
use reasonable efforts (which shall not require such Lender or the Issuing Bank
to incur an unreimbursed loss or unreimbursed cost or expense or otherwise take
any action inconsistent with its internal policies or legal or regulatory
restrictions or suffer any disadvantage or burden deemed by it to be
significant) (x) to file any certificate or document reasonably requested
in writing by the Borrower or (y) to assign its rights and delegate and
transfer its obligations hereunder to another of its offices, branches or
affiliates, if such filing or assignment would reduce its claims for
compensation under Section 2.14 or enable 

 

46

 

it to withdraw its notice pursuant to Section 2.15 or would reduce
amounts payable pursuant to Section 2.20, as the case may be, in the
future. The Borrower hereby agrees to pay all reasonable costs and expenses
incurred by any Lender or the Issuing Bank in connection with any such filing
or assignment, delegation and transfer.

 

SECTION 2.22.  Letters of Credit.  (a)  General. The Borrower may request the issuance of
a Letter of Credit for its own account or for the account of any wholly owned
Subsidiaries (in which case the Borrower and such wholly owned Subsidiary shall
be co-applicants with respect to such Letter of Credit), in a form reasonably
acceptable to the Administrative Agent and the Issuing Bank, at any time and
from time to time while the L/C Commitment remains in effect.  The L/C Commitment shall terminate on the
date that is 30 days prior to the Revolving Credit Maturity Date.  This Section shall not be construed to
impose an obligation upon the Issuing Bank to issue any Letter of Credit that
is inconsistent with the terms and conditions of this Agreement.
Notwithstanding anything to the contrary contained in this Section 2.22 or
elsewhere in this Agreement, in the event that a Revolving Credit Lender is a
Defaulting Lender, the Issuing Bank shall not be required to issue any Letter
of Credit unless the Issuing Bank has entered into arrangements satisfactory to
it and the Borrower to eliminate the Issuing Bank’s risk with respect to the
participation in Letters of Credit by all such Defaulting Lenders, including by
cash collateralizing each such Defaulting Lender’s Pro Rata Percentage of each
Letter of Credit.

 

(b)  Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions.  In order to request
the issuance of a Letter of Credit (or to amend, renew or extend an Existing
Letter of Credit), the Borrower shall hand deliver or fax to the Issuing Bank
and the Administrative Agent (reasonably in advance of the requested date of
issuance, amendment, renewal or extension) a notice requesting the issuance of
a Letter of Credit, or identifying the Letter of Credit to be amended, renewed
or extended, the date of issuance, amendment, renewal or extension, the date on
which such Letter of Credit is to expire (which shall comply with
paragraph (c) below), the amount of such Letter of Credit, the
currency in which such Letter of Credit is to be denominated (which shall be
dollars or, subject to Section 2.15, an Alternative Currency), the name
and address of the beneficiary thereof and such other information as shall be
necessary to prepare such Letter of Credit. A Letter of Credit shall be issued,
amended, renewed or extended only if, and upon issuance, amendment, renewal or
extension of each Letter of Credit the Borrower shall be deemed to represent
and warrant that, after giving effect to such issuance, amendment, renewal or
extension (i) the L/C Exposure shall not exceed $20,000,000 and (ii) the
Aggregate Revolving Credit Exposure shall not exceed the Total Revolving Credit
Commitment.

 

(c)  Expiration Date.  Each Letter of Credit shall expire at the
close of business on the earlier of the date one year after the date of the
issuance of such Letter of Credit and the date that is five Business Days
prior to the Revolving Credit Maturity Date, unless such Letter of Credit expires
by its terms on an earlier date; provided, however, that a Letter of Credit may, upon the request of
the 

 

47

 

Borrower, include a provision whereby such Letter of Credit shall be
renewed automatically for additional consecutive periods of 12 months or less
(but not beyond the date that is five Business Days prior to the Revolving
Credit Maturity Date) unless the Issuing Bank notifies the beneficiary thereof
at least 30 days (or such longer period as may be specified in such Letter
of Credit) prior to the then-applicable expiration date that such Letter of
Credit will not be renewed.

 

(d)  Participations.  By the issuance of a Letter of Credit and
without any further action on the part of the Issuing Bank or the Lenders, the
Issuing Bank hereby grants to each Revolving Credit Lender, and each such
Lender hereby acquires from the Issuing Bank, a participation in such Letter of
Credit equal to such Lender’s Pro Rata Percentage of the aggregate amount
available to be drawn under such Letter of Credit, effective upon the issuance
of such Letter of Credit (or, in the case of an Existing Letter of Credit, on
the Closing Date).  In consideration and
in furtherance of the foregoing, each Revolving Credit Lender hereby absolutely
and unconditionally agrees to pay to the Administrative Agent, for the account
of the Issuing Bank, such Lender’s Pro Rata Percentage of each L/C Disbursement
made by the Issuing Bank and not reimbursed by the Borrower (or, if applicable,
another party pursuant to its obligations under any other Loan Document)
forthwith on the date due as provided in Section 2.02(f) in dollars,
notwithstanding that such L/C Disbursement may be denominated in an Alternative
Currency. Each Revolving Credit Lender acknowledges and agrees that its
obligation to acquire participations pursuant to this paragraph in respect of
Letters of Credit is absolute and unconditional and shall not be affected by
any circumstance whatsoever, including the occurrence and continuance of a
Default or an Event of Default, and that each such payment shall be made
without any offset, abatement, withholding or reduction whatsoever.

 

(e)  Reimbursement.  If the Issuing Bank shall make any L/C
Disbursement in respect of a Letter of Credit, the Borrower shall pay to the
Administrative Agent an amount equal to such L/C Disbursement not later than
two hours after the Borrower shall have received notice from the Issuing Bank
that payment of such draft will be made, or, if the Borrower shall have
received such notice later than 10:00 a.m., New York City time, on any
Business Day, not later than 10:00 a.m., New York City time, on the
immediately following Business Day.

 

(f)  Obligations Absolute.  The Borrower’s obligations to reimburse L/C
Disbursements as provided in paragraph (e) above shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement, under any and all circumstances whatsoever,
and irrespective of:

 

(i) any lack of validity or
enforceability of any Letter of Credit or any Loan Document, or any term or
provision therein;

 

(ii) any amendment or waiver of or any
consent to departure from all or any of the provisions of any Letter of Credit
or any Loan Document;

 

48

 

(iii) the existence of any claim,
setoff, defense or other right that the Borrower, any other party guaranteeing,
or otherwise obligated with, the Borrower, any Subsidiary or other Affiliate
thereof or any other person may at any time have against the beneficiary under
any Letter of Credit, the Issuing Bank, the Administrative Agent or any Lender
or any other person, whether in connection with this Agreement, any other Loan
Document or any other related or unrelated agreement or transaction;

 

(iv) any draft or other document
presented under a Letter of Credit proving to be forged, fraudulent, invalid or
insufficient in any respect or any statement therein being untrue or inaccurate
in any respect;

 

(v) payment by the Issuing Bank under a
Letter of Credit against presentation of a draft or other document that does
not comply with the terms of such Letter of Credit; and

 

(vi) any other act or omission to act or
delay of any kind of the Issuing Bank, the Lenders, the Administrative Agent or
any other person or any other event or circumstance whatsoever, whether or not
similar to any of the foregoing, that might, but for the provisions of this
Section, constitute a legal or equitable discharge of the Borrower’s
obligations hereunder.

 

Without limiting the generality of the
foregoing, it is expressly understood and agreed that the absolute and
unconditional obligation of the Borrower hereunder to reimburse L/C
Disbursements will not be excused by the gross negligence or willful misconduct
of the Issuing Bank. However, the foregoing shall not be construed to excuse
the Issuing Bank from liability to the Borrower to the extent of any direct
damages (as opposed to consequential damages, claims in respect of which are
hereby waived by the Borrower to the extent permitted by applicable law)
suffered by the Borrower that are caused by the Issuing Bank’s gross negligence
or willful misconduct in determining whether drafts and other documents
presented under a Letter of Credit comply with the terms thereof; it is
understood that the Issuing Bank may accept documents that appear on their face
to be in order, without responsibility for further investigation, regardless of
any notice or information to the contrary and, in making any payment under any
Letter of Credit (i) the Issuing Bank’s exclusive reliance on the
documents presented to it under such Letter of Credit as to any and all matters
set forth therein, including reliance on the amount of any draft presented
under such Letter of Credit, whether or not the amount due to the beneficiary
thereunder equals the amount of such draft and whether or not any document
presented pursuant to such Letter of Credit proves to be insufficient in any
respect, if such document on its face appears to be in order, and whether or
not any other statement or 

 

49

 

any other document presented
pursuant to such Letter of Credit proves to be forged or invalid or any
statement therein proves to be inaccurate or untrue in any respect whatsoever
and (ii) any noncompliance in any immaterial respect of the documents
presented under such Letter of Credit with the terms thereof shall, in each
case, be deemed not to constitute gross negligence or willful misconduct of the
Issuing Bank.

 

(g)  Disbursement Procedures.  The Issuing Bank shall, promptly following
its receipt thereof, examine all documents purporting to represent a demand for
payment under a Letter of Credit.  The
Issuing Bank shall as promptly as possible give telephonic notification,
confirmed by fax, to the Administrative Agent and the Borrower of such demand
for payment and whether the Issuing Bank has made or will make an L/C
Disbursement thereunder; provided that
any failure to give or delay in giving such notice shall not relieve the Borrower
of its obligation to reimburse the Issuing Bank and the Revolving Credit
Lenders with respect to any such L/C Disbursement.

 

(h)  Interim Interest. 
If the Issuing Bank shall make any L/C Disbursement in respect of a
Letter of Credit, then, unless the Borrower shall reimburse such L/C
Disbursement in full on such date, the unpaid amount thereof shall bear
interest for the account of the Issuing Bank, for each day from and including
the date of such L/C Disbursement, to but excluding the earlier of the date of
payment by the Borrower or the date on which interest shall commence to accrue
thereon as provided in Section 2.02(f), at the rate per annum that would
apply to such amount if such amount were an ABR Revolving Loan.  If such amount is denominated in an
Alternative Currency, then the interest rate applicable thereto shall be
determined by such Issuing Bank to be the average rate (rounded upwards, if
necessary, to the next 1/16 of 1%) at which overnight deposits in such
Alternative Currency are obtainable by such Issuing Bank on such date in the
relevant interbank market plus the Applicable Percentage for Eurodollar Loans
at the time.

 

(i)  Resignation or Removal of the Issuing Bank.  The Issuing Bank may resign at any time by
giving 30 days’ prior written notice to the Administrative Agent, the Lenders
and the Borrower, and may be removed at any time by the Borrower by notice to
the Issuing Bank, the Administrative Agent and the Lenders.  Upon the acceptance of any appointment as the
Issuing Bank hereunder by a Lender that shall agree to serve as successor
Issuing Bank, such successor shall succeed to and become vested with all the
interests, rights and obligations of the retiring Issuing Bank. At the time
such removal or resignation shall become effective, the Borrower shall pay all
accrued and unpaid fees pursuant to Section 2.05(c)(ii). The acceptance of
any appointment as the Issuing Bank hereunder by a successor Lender shall be
evidenced by an agreement entered into by such successor, in a form satisfactory
to the Borrower and the Administrative Agent, and, from and after the effective
date of such agreement, (i) such successor Lender shall have all the
rights and obligations of the previous Issuing Bank under this Agreement and
the other Loan Documents and (ii) references herein and in the other Loan
Documents to the term “Issuing Bank” shall be deemed to refer to such 

 

50

 

successor or to any previous Issuing Bank, or to such successor and all
previous Issuing Banks, as the context shall require. After the resignation or
removal of the Issuing Bank hereunder, the retiring Issuing Bank shall remain a
party hereto and shall continue to have all the rights and obligations of an
Issuing Bank under this Agreement and the other Loan Documents with respect to
Letters of Credit issued by it prior to such resignation or removal, but shall
not be required to issue additional Letters of Credit.

 

(j)  Cash Collateralization.  If any Event of Default shall occur and be
continuing, the Borrower shall, on the Business Day it receives notice from the
Administrative Agent or the Required Lenders (or, if the maturity of the Loans
has been accelerated, Revolving Credit Lenders holding participations in
outstanding Letters of Credit representing greater than 50% of the aggregate
undrawn amount of all outstanding Letters of Credit) thereof and of the amount
to be deposited, deposit in an account with the Collateral Agent, for the
benefit of the Revolving Credit Lenders, an amount in cash equal to the L/C
Exposure as of such date. Such deposit shall be held by the Collateral Agent as
collateral for the payment and performance of the Obligations. The Collateral
Agent shall have exclusive dominion and control, including the exclusive right
of withdrawal, over such account.  Other
than any interest earned on the investment of such deposits in Permitted
Investments, which investments shall be made at the option and sole discretion
of the Collateral Agent, such deposits shall not bear interest. Interest or
profits, if any, on such investments shall accumulate in such account. Moneys
in such account shall (i) automatically be applied by the Administrative
Agent to reimburse the Issuing Bank for L/C Disbursements for which it has not
been reimbursed, (ii) be held for the satisfaction of the reimbursement
obligations of the Borrower for the L/C Exposure at such time and (iii) if
the maturity of the Loans has been accelerated (but subject to the consent of
Revolving Credit Lenders holding participations in outstanding Letters of
Credit representing greater than 50% of the aggregate undrawn amount of all
outstanding Letters of Credit), be applied to satisfy the Obligations. If the
Borrower is required to provide an amount of cash collateral hereunder as a
result of the occurrence of an Event of Default, such amount (to the extent not
applied as aforesaid) shall be returned to the Borrower within three Business
Days after all Events of Default have been cured or waived.

 

(k)  Additional Issuing Banks.  The Borrower may,
at any time and from time to time with the consent of the Administrative Agent
(which consent shall not be unreasonably withheld or delayed) and such Lender,
designate one or more additional Lenders to act as an issuing bank under the
terms of this Agreement, subject to reporting requirements reasonably
satisfactory to the Administrative Agent with respect to issuances, amendments,
extensions and terminations of Letters of Credit by such additional issuing
bank. Any Lender designated as an issuing bank pursuant to this paragraph (k) shall
be deemed to be an “Issuing Bank” (in addition to being a Lender) in respect of
Letters of Credit issued or to be issued by such Lender, and, with respect to
such Letters of Credit, such term shall thereafter apply to the other Issuing
Bank and such Lender.

 

51

 

ARTICLE III

 

Representations and
Warranties

 

Each of Holdings and the
Borrower represents and warrants to the Administrative Agent, the Collateral
Agent, the Issuing Bank and each of the Lenders that:

 

SECTION 3.01.  Organization; Powers.  Holdings, the Borrower and each of the
Subsidiaries (a) is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization, (b) has all
requisite organizational power and authority to own its property and assets and
to carry on its business, (c) is qualified to do business in, and is in
good standing in, every jurisdiction where such qualification is required,
except where the failure so to qualify could not reasonably be expected to
result in a Material Adverse Effect, and (d) has the power and authority
to execute, deliver and perform its obligations under each of the Loan
Documents and each other agreement or instrument contemplated thereby to which
it is or will be a party and, in the case of the Borrower, to borrow hereunder.

 

SECTION 3.02.  Authorization.  The Transactions (a) have been duly
authorized by all requisite corporate and, if required, stockholder action and (b) will
not (i) violate (A) any provision of law, statute, rule or
regulation, or of the certificate or articles of incorporation or other
constitutive documents or by-laws of Holdings, the Borrower or any Subsidiary, (B) any
order of any Governmental Authority or (C) any provision of any indenture,
agreement or other instrument to which Holdings, the Borrower or any Subsidiary
is a party or by which any of them or any of their property is or may be bound,
(ii) be in conflict with, result in a breach of or constitute (alone or
with notice or lapse of time or both) a default under, or give rise to any
right to accelerate or to require the prepayment, repurchase or redemption of
any obligation under any such indenture, agreement or other instrument or (iii) result
in the creation or imposition of any Lien upon or with respect to any property
or assets now owned or hereafter acquired by the Borrower or any Subsidiary
(other than any Lien created hereunder or under the Security Documents).

 

SECTION 3.03.  Enforceability.  This Agreement has been duly executed and
delivered by Holdings and the Borrower and constitutes, and each other Loan
Document when executed and delivered by each Loan Party thereto will
constitute, a legal, valid and binding obligation of such Loan Party
enforceable against such Loan Party in accordance with its terms.

 

SECTION 3.04.  Governmental Approvals.  No action, consent or approval of,
registration or filing with or any other action by any Governmental Authority
is or will be required in connection with the Transactions, except for (a) the
filing of Uniform Commercial Code financing statements and filings with the
United States Patent and Trademark Office and the United States Copyright
Office, (b) recordation of the Mortgages and (c) such as either have
been made or obtained and are in full force and 

 

52

 

effect or the failure to make or obtain the
same could not reasonably be expected to have a Material Adverse Effect.

 

SECTION 3.05.  Financial Statements.  Holdings has
heretofore furnished to the Administrative Agent its consolidated balance sheet
and related statements of income, stockholder equity and cash flows for the
fiscal year ended December 31, 2009, audited by and accompanied by the
opinion of KPMG L.L.P., independent public accountants. Such financial
statements present fairly, in all material respects, the financial condition
and results of operations and cash flows of Holdings and its consolidated
Subsidiaries as of such dates and for such periods. Such balance sheets and the
notes thereto disclose all material liabilities, direct or contingent, of
Holdings and its consolidated Subsidiaries required to be disclosed in
accordance with GAAP as of the dates thereof. Such financial statements were
prepared in accordance with GAAP applied on a consistent basis except as
otherwise noted therein.

 

SECTION 3.06.  No Material Adverse Change.  No event, change or condition has occurred
that, individually or in the aggregate, has had, or could reasonably be
expected to have, a material adverse effect on the business, assets,
liabilities, operations, condition (financial or otherwise) or prospects of
Holdings, the Borrower and the Subsidiaries, taken as a whole, since December 31,
2009.

 

SECTION 3.07.  Title to Properties; Possession Under Leases; Intellectual
Property.  (a)  Each of Holdings, the Borrower
and the Subsidiaries has good and marketable title to, or valid leasehold
interests in, all its material properties and assets (including all Mortgaged
Property), except for defects in title that do not materially interfere with
its ability to conduct its business as currently conducted or to utilize such
properties and assets for their intended purposes or as specified in Schedule 3.07.
All such material properties and assets are free and clear of Liens, other than
Liens expressly permitted by Section 6.02.

 

(b)  Each of Holdings, the Borrower and
the Subsidiaries has complied in all material respects with all obligations
under all material leases to which it is a party and all such leases are in
full force and effect.  Each of Holdings,
the Borrower and the Subsidiaries enjoys peaceful and undisturbed possession
under all such material leases.

 

(c)  As of the Closing Date, neither
Holdings nor the Borrower has received any notice of, nor has any knowledge of,
any pending or contemplated condemnation proceeding affecting the Mortgaged
Properties or any sale or disposition thereof in lieu of condemnation. As of
the Closing Date, none of Holdings, the Borrower or any of the Subsidiaries is
obligated under any right of first refusal, option or other contractual right
to sell, assign or otherwise dispose of any Mortgaged Property or any interest
therein.

 

(d)  Holdings and/or its Subsidiaries
own, or are licensed or otherwise have the right to use, all patents,
inventions, trademarks, service marks, trade names, domain names, copyrights,
and registrations and applications for the foregoing, 

 

53

 

know-how, manufacturing processes, formulae, trade secrets, rights of
publicity of natural persons and any other intangible property and assets which
are material to the businesses of Holdings and its Subsidiaries (collectively,
the “Intellectual Property Rights”).  Except as set forth on Schedule 3.07(d),
Holdings does not have any knowledge of, and neither Holdings nor any of its
Subsidiaries has given any notice of, any pending conflicts with or
infringement of or other violation of any Intellectual Property Rights or
Regulatory Approvals by any third party, and no action, suit, arbitration, or
legal, administrative or other proceedings, or investigation is pending, or, to
the knowledge of Holdings, threatened, which involves any Intellectual Property
Rights and which could reasonably be expected to have a Material Adverse
Effect.  Except as set forth on
Schedule 3.07(d), neither Holdings nor any of its Subsidiaries is subject
to any judgment, order, writ, injunction or decree of any Governmental Authority
or any arbitrator, or has entered into or is a party to any contract, which
restricts or impairs the use of any such Intellectual Property Rights of
Holdings’ or any of its Subsidiaries’ use of or right to use any of the
Intellectual Property Rights and which could reasonably be expected to have a
Material Adverse Effect.  To the
knowledge of Holdings, no Intellectual Property Rights licensed to or by or
otherwise used by Holdings or any of its Subsidiaries, no services rendered or
products manufactured by or sold by Holdings or any of its Subsidiaries, and no
conduct of the business of Holdings or any of its Subsidiaries, infringes upon
or otherwise violates any intellectual property rights of any third party in
any manner which could reasonably be expected to have a Material Adverse
Effect.  Except as set forth on Schedule
3.07(d), neither Holdings nor any of its Subsidiaries has received notice of
any pending conflict with or infringement upon such third-party intellectual
property rights in any manner which could reasonably be expected to have a
Material Adverse Effect.  To the
knowledge of Holdings, no claims have been asserted by any person with respect
to the validity of or Holdings’ or any of its Subsidiaries’ ownership of or
right to use, the Intellectual Property Rights and, to the knowledge of
Holdings, there is no reasonable basis for any such claim to be successful in
any manner which could reasonably be expected to have a Material Adverse
Effect.  To the knowledge of Holdings,
the Intellectual Property Rights are valid and enforceable and no registration
or application relating thereto that is material to the business of Holdings
and its Subsidiaries has lapsed, expired or been abandoned or cancelled or is
the subject of cancellation or other adversarial proceedings, and all
applications therefor are pending and are in good standing except to the extent
that such lapse, expiration, abandonment or cancellation was allowed to occur
in the reasonable business judgment of Holdings.  Holdings and its Subsidiaries have complied
with their respective contractual obligations relating to the Intellectual
Property Rights used pursuant to licenses except for any such non-compliance as
could not reasonably be expected to have a Material Adverse Effect.  Holdings and its Subsidiaries take reasonable
security measures that are adequate to retain trade secret protection in the
non-patented technology that is material to their business.

 

SECTION 3.08.  Subsidiaries. 
Schedule 3.08 sets forth as of the Closing Date a list of all
Subsidiaries and the percentage ownership interest of Holdings or the Borrower
therein. The shares of capital stock or other ownership interests so indicated
on Schedule 

 

54

 

3.08 are fully paid and non-assessable and
are owned by Holdings or the Borrower, directly or indirectly, free and clear
of all Liens (other than Liens created under the Security Documents or
expressly permitted by Section 6.02).

 

SECTION 3.09.  Litigation; Compliance with Laws.  (a) 
Except as set forth on Schedule 3.09(a), there are no actions, suits or
proceedings at law or in equity or by or before any Governmental Authority now
pending or, to the knowledge of Holdings or the Borrower, threatened in writing
against or affecting Holdings or the Borrower or any Subsidiary or any business
or material property of any such person (i) that involve any Loan Document
or the Transactions (x) on the Closing Date or (y) after Closing as
to which there is a reasonable possibility of an adverse determination or (ii) as
to which there is a reasonable possibility of an adverse determination and
that, if adversely determined, could reasonably be expected, individually or in
the aggregate, to result in a Material Adverse Effect.

 

(b)  Except as set forth on Schedule
3.09(b), Holdings and each of its Subsidiaries is in compliance with all
applicable laws, statutes, ordinances, rules and regulations and has filed
all applications and has obtained all licenses, permits and approvals or other
regulatory authorizations of the FDA, the HHS and any other Governmental
Authorities with regulatory authority over the activities of Holdings and its
Subsidiaries (including all FDA approvals necessary for manufacturing or
marketing the products that Holdings and each of its Subsidiaries currently
manufacture or market) (“Regulatory
Approvals”), other than where the failure to so be in
compliance, make such filings or obtain such authorizations could not
reasonably be expected to have a Material Adverse Effect.

 

(c)  The FDA has not commenced, or, to
Holdings’ knowledge, threatened to initiate, any action to withdraw its
approval of any product of Holdings or its Subsidiaries or commenced or, to
Holdings’ knowledge, threatened to initiate any action to withdraw its approval
of any facility of Holdings or its Subsidiaries, in each case which could
reasonably be expected to have a Material Adverse Effect.

 

(d)  Except as set forth on Schedule
3.09(d), neither Holdings nor its Subsidiaries have received any notice or
correspondence from the FDA, the HHS or any other Governmental Authority
requiring the termination or suspension of any human clinical trials conducted
by, or on behalf of, Holdings or its Subsidiaries or in which Holdings or its
Subsidiaries have participated, or any modification of any clinical trials
conducted by, or on behalf of, Holdings or its Subsidiaries or in which
Holdings or its Subsidiaries have participated, in each case which could
reasonably be expected to have a Material Adverse Effect.

 

(e)  All inventory in possession or
control of Holdings or any of its Subsidiaries (i) is not adulterated or
misbranded (within the meaning of the Food and Drug Act or the rules and
regulations of the FDA promulgated thereunder); and (ii) is manufactured,
labeled and packaged in accordance in all material respects with cGMPs and with
all other applicable laws.

 

55

 

(f)  Since the date of this Agreement,
there has been no change in the status of the matters disclosed on any of
Schedules 3.09(a), (b) or (d) that, individually or in the
aggregate, has resulted in, or could reasonably be expected to result in, a
Material Adverse Effect.

 

(g)  None of Holdings, the Borrower or
any of the Subsidiaries or any of their respective material properties or
assets is in violation of, nor will the continued operation of their material
properties and assets as currently conducted violate, any law, rule or
regulation (including any zoning, building, Environmental Law, ordinance, code
or approval or any building permits) or any restrictions of record or
agreements affecting the Mortgaged Property, or is in default with respect to
any judgment, writ, injunction, decree or order of any Governmental Authority,
where such violation or default could reasonably be expected to result in a
Material Adverse Effect.

 

(h)  Certificates of occupancy are in
effect for each Mortgaged Property as currently constructed, and true and
complete copies of such certificates of occupancy as of the Closing Date have
been delivered to the Collateral Agent as mortgagee with respect to each
Mortgaged Property.

 

SECTION 3.10.  Agreements.  (a)  None of
Holdings, the Borrower or any of the Subsidiaries is a party to any agreement
or instrument or subject to any corporate restriction that has resulted or
could reasonably be expected to result in a Material Adverse Effect.

 

(b)  None of Holdings, the Borrower or
any of the Subsidiaries is in default in any manner under any provision of any
indenture or other agreement or instrument evidencing Material Indebtedness, or
any other material agreement or instrument to which it is a party or by which
it or any of its properties or assets are or may be bound, where such default
could reasonably be expected to result in a Material Adverse Effect.

 

SECTION 3.11.  Federal Reserve Regulations.  (a) 
None of Holdings, the Borrower or any of the Subsidiaries is engaged
principally, or as one of its important activities, in the business of
extending credit for the purpose of buying or carrying Margin Stock.

 

(b)  No part of the proceeds of any Loan
or any Letter of Credit will be used, whether directly or indirectly, and
whether immediately, incidentally or ultimately, for the purpose of buying
or carrying Margin Stock or for any purpose that entails a violation of, or
that is inconsistent with, the provisions of the Regulations of the Board,
including Regulation T, U or X.

 

SECTION 3.12.  Investment Company Act.  None of Holdings, the Borrower or any
Subsidiary is an “investment company” as defined in, or subject to
regulation under, the Investment Company Act of 1940.

 

56

 

SECTION 3.13.  Use of Proceeds.  The Borrower will use the proceeds of the
Loans and will request the issuance of Letters of Credit only for the purposes
specified in the introductory statement to this Agreement.

 

SECTION 3.14.  Tax Returns. 
Each of Holdings, the Borrower and the Subsidiaries has filed or caused
to be filed all United States Federal and material state, local and non-United
States Tax returns or materials required to have been filed by it and has paid
or caused to be paid all material Taxes due and payable by it and all
assessments received by it, except (a) as set forth on Schedule 3.14
and (b) Taxes that may be paid without penalty or that are being contested
in good faith by appropriate proceedings and for which Holdings, the Borrower
or such Subsidiary, as applicable, shall have set aside on its books adequate
reserves.

 

SECTION 3.15.  No Material Misstatements.  None of (a) the Confidential Information
Memorandum or (b) any other information, report, financial statement,
exhibit or schedule (other than general market data not prepared by or specific
to Holdings and its Subsidiaries), taken as a whole, furnished by or on behalf
of Holdings or the Borrower to the Administrative Agent or any Lender in
connection with the negotiation of any Loan Document or included therein or
delivered pursuant thereto, contained, contains or will contain any material
misstatement of fact or omitted, omits or will omit to state any material fact
necessary to make the statements therein, in the light of the circumstances
under which they were, are or will be made, not misleading; provided that to the extent any such
information, report, financial statement, exhibit or schedule was based upon or
constitutes a forecast or projection, each of Holdings and the Borrower
represents only that it acted in good faith and utilized reasonable assumptions
in the preparation of such information, report, financial statement, exhibit or
schedule.

 

SECTION 3.16.  Employee Benefit Plans.  (a)  Each of the Borrower and its ERISA
Affiliates is in compliance in all material respects with the applicable
provisions of ERISA and the Code and the regulations and published
interpretations thereunder. No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events,
could reasonably be expected to result in a Material Adverse Effect.

 

(b)  Each Foreign Pension Plan is in
compliance in all material respects with all requirements of law applicable
thereto and the respective requirements of the governing documents for such
plan. With respect to each Foreign Pension Plan, none of the Borrower, its
Affiliates or any of their respective directors, officers, employees or agents
has engaged in a transaction which would subject the Borrower or any
Subsidiary, directly or indirectly, to a tax or civil penalty which could
reasonably be expected, individually or in the aggregate, to result in a
Material Adverse Effect. With respect to each Foreign Pension Plan, reserves
have been established in the financial statements furnished to Lenders in
respect of any unfunded liabilities in accordance with applicable law and
prudent business practice or, where required, in accordance with ordinary
accounting practices in the jurisdiction in which such Foreign Pension Plan is
maintained. The aggregate 

 

57

 

unfunded liabilities with respect to such Foreign Pension Plans could
not reasonably be expected to result in a Material Adverse Effect.

 

SECTION 3.17.  Environmental Matters.  (a) 
Except as set forth in Schedule 3.17 and except with respect to any other
matters that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, none of Holdings, the Borrower
or any of the Subsidiaries (i) has failed to comply with any Environmental
Law or to obtain, maintain or comply with any permit, license or other approval
required under any Environmental Law, (ii) has become subject to any
Environmental Liability or (iii) has received notice of any claim with
respect to any Environmental Liability.

 

(b)  Since the date of this Agreement,
there has been no change in the status of the matters disclosed on
Schedule 3.17 that, individually or in the aggregate, has resulted in, or
could reasonably be expected to result in, a Material Adverse Effect.

 

SECTION 3.18.  Insurance. 
Schedule 3.18 sets forth a true, complete and correct description of all
insurance maintained by the Borrower or by the Borrower for its Subsidiaries as
of the Closing Date. As of such date, such insurance is in full force and
effect and all premiums that were due and payable have been duly paid. The
Borrower and its Subsidiaries have insurance in such amounts and covering such
risks and liabilities as are in the good faith judgment of the Borrower and the
Subsidiaries in accordance with normal industry practice.

 

SECTION 3.19.  Security Documents.  (a)  The
Guarantee and Collateral Agreement, upon execution and delivery thereof by the
parties thereto, will create in favor of the Collateral Agent, for the ratable
benefit of the Secured Parties, a legal, valid and enforceable security
interest in the Collateral (as defined in the Guarantee and Collateral
Agreement) and the proceeds thereof and (i) when the Pledged Collateral
(as defined in the Guarantee and Collateral Agreement) is delivered to the
Collateral Agent, the Lien created under the Guarantee and Collateral Agreement
shall constitute a fully perfected first priority Lien on, and security
interest in, all right, title and interest of the Loan Parties in such Pledged
Collateral, in each case prior and superior in right to any other person, and (ii) when
financing statements in appropriate form are filed in the offices specified on
Schedule 3.19(a) (or, in the case of Collateral delivered after the date
hereof in accordance with the provisions of Section 5.12, in the
appropriate filing offices), the Lien created under the Guarantee and
Collateral Agreement will constitute a fully perfected Lien on, and security
interest in, all right, title and interest of the Loan Parties in such
Collateral (other than Intellectual Property, as defined in the Guarantee and
Collateral Agreement, or fixtures, as defined in the UCC), in each case prior
and superior in right to any other person, other than with respect to Liens
expressly permitted by Section 6.02 or the Guarantee and Collateral
Agreement.

 

(b)  Upon the recordation of the
Guarantee and Collateral Agreement (or a short-form security agreement in form
and substance reasonably satisfactory to the Borrower and the Collateral Agent)
with the United States Patent and Trademark Office and the United States
Copyright Office, together with the financing 

 

58

 

statements or such other filings in appropriate form filed in the
offices specified on Schedule 3.19(a) (or, in the case of Collateral
delivered after the date hereof in accordance with the provisions of Section 5.12,
in the appropriate filing offices), the Lien created under the Guarantee and
Collateral Agreement shall constitute a fully perfected Lien on, and security
interest in, all right, title and interest of the Loan Parties in the
Intellectual Property (as defined in the Guarantee and Collateral Agreement) in
which a security interest may be perfected by filing in the United States and
its territories and possessions, in each case prior and superior in right to
any other person, (it being understood that subsequent recordings in the United
States Patent and Trademark Office and the United States Copyright Office may
be necessary to perfect a Lien on registered trademarks and patents, trademark
and patent applications and registered copyrights acquired by the Loan Parties
after the date hereof).

 

(c)  The Mortgages are effective to
create in favor of the Collateral Agent, for the ratable benefit of the Secured
Parties, a legal, valid and enforceable Lien on all of the Loan Parties’ right,
title and interest in and to the Mortgaged Property thereunder and the casualty
insurance proceeds thereof, and when the Mortgages are filed in the offices
specified on Schedule 3.19(c) and all related recording fees paid (or, in
the case of any Mortgage executed and delivered after the date hereof in
accordance with the provisions of Section 5.12, when such Mortgage is
filed in the offices specified in the local counsel opinion delivered with respect
thereto), the Mortgages shall constitute a fully perfected Lien on all right,
title and interest of the Loan Parties in such Mortgaged Property and the
casualty insurance proceeds thereof, in each case prior and superior in right
to any other person, other than with respect to the rights of persons pursuant
to Liens expressly permitted by Section 6.02 or by such Mortgage.

 

SECTION 3.20.  Location of Real Property and Leased Premises.  (a)  Schedule 3.20(a) lists
completely and correctly as of the Closing Date all real property owned by the
Borrower and the Subsidiaries and the addresses thereof. As of the Closing
Date, the Borrower and the Subsidiaries own in fee all the real property set
forth on Schedule 3.20(a).

 

(b)  Schedule 3.20(b) lists
completely and correctly as of the Closing Date all real property leased by the
Borrower and the Subsidiaries and the addresses thereof. As of the Closing
Date, the Borrower and the Subsidiaries have valid leases in all the real
property set forth on Schedule 3.20(b).

 

SECTION 3.21.  Labor Matters.  As of the Closing Date, there are no strikes,
lockouts or slowdowns against Holdings, the Borrower or any Subsidiary pending
or, to the knowledge of Holdings or the Borrower, threatened. The hours worked
by and payments made to employees of Holdings, the Borrower and the
Subsidiaries complied in all material respects with the Fair Labor Standards
Act and any other applicable Federal, state, local or foreign law dealing with
such matters. All payments due from Holdings, the Borrower or any Subsidiary,
or for which any claim may be made against Holdings, the Borrower or any
Subsidiary, on account of wages and employee health and welfare 

 

59

 

insurance and other benefits, have been paid
or accrued as a liability on the books of Holdings, the Borrower or such
Subsidiary except where the failure to do so could not reasonably be expected
to result in a material liability to Holdings, the Borrower or any Subsidiary.
The consummation of the Transactions will not give rise to any right of
termination or right of renegotiation on the part of any union under any
collective bargaining agreement to which Holdings, the Borrower or any
Subsidiary is bound.

 

SECTION 3.22.  Solvency. 
Immediately after the consummation of the Transactions to occur on the
Closing Date and immediately following the making of each Loan and after giving
effect to the application of the proceeds of each Loan, (a) the fair value
of the assets of Holdings and its Subsidiaries, taken as a whole, at a fair
valuation, will exceed their debts and liabilities, subordinated, contingent or
otherwise; (b) the present fair saleable value of the property of Holdings
and its Subsidiaries, taken as a whole, will be greater than the amount that
will be required to pay the probable liability of their debts and other
liabilities, subordinated, contingent or otherwise, as such debts and other
liabilities become absolute and matured; (c) Holdings and its
Subsidiaries, taken as a whole, will be able to pay their debts and
liabilities, subordinated, contingent or otherwise, as such debts and
liabilities become absolute and matured; and (d) Holdings and its
Subsidiaries, taken as a whole, will not have unreasonably small capital with
which to conduct the business in which they are engaged as such business is now
conducted and is proposed to be conducted following the Closing Date.

 

ARTICLE IV

 

Conditions of Lending

 

The obligations of the
Lenders to make Loans and of the Issuing Bank to issue Letters of Credit
hereunder are subject to the satisfaction of the following conditions:

 

SECTION 4.01.  All Credit Events.  On the date of each Borrowing (other than a
conversion or a continuation of a Borrowing) and on the date of each issuance,
amendment, extension or renewal of a Letter of Credit (each such event being
called a “Credit Event”):

 

(a)  The Administrative Agent shall have
received a notice of such Borrowing as required by Section 2.03 (or such
notice shall have been deemed given in accordance with Section 2.02) or,
in the case of the issuance, amendment, extension or renewal of a Letter of
Credit, the Issuing Bank and the Administrative Agent shall have received a
notice requesting the issuance, amendment, extension or renewal of such Letter
of Credit as required by Section 2.22(b).

 

(b)  The representations and warranties
set forth in Article III and in each other Loan Document shall be true and
correct in all material respects on and as of the date of such Credit Event
with the same effect as though made on and as of such date, except to the
extent such representations and warranties expressly relate to an earlier date.

 

60

 

(c)  At the time of and immediately
after such Credit Event, no Default or Event of Default shall have occurred and
be continuing.

 

Each Credit Event shall be
deemed to constitute a representation and warranty by the Borrower on the date
of such Credit Event as to the matters specified in paragraphs (b) and (c) of
this Section 4.01.

 

SECTION 4.02.  First Credit Event.  On the Closing Date:

 

(a)  The Administrative Agent shall have
received, on behalf of itself, the Lenders and the Issuing Bank, a favorable
written opinion of (i) Fried, Frank, Harris, Shriver & Jacobson LLP,
special counsel for Holdings and the Borrower, substantially to the effect set
forth in Exhibit E-1, and (ii) Jones, Walker, Waechter, Poitevent,
Carrère & Denègre, L.L.P., special Louisiana counsel for Holdings and
the Borrower, substantially to the effect set forth in Exhibit E-2, in
each case (A) dated the Closing Date, (B) addressed to the Issuing
Bank, the Administrative Agent and the Lenders, and (C) covering such
other matters relating to the Loan Documents and the Transactions as the
Administrative Agent shall reasonably request, and the Borrower hereby requests
such counsel to deliver such opinions.

 

(b)  The Administrative Agent shall have
received, on behalf of itself, the Lenders and the Issuing Bank, a solvency
opinion in form and substance and from an independent investment bank or
valuation firm satisfactory to the Administrative Agent, to the effect that
each of Holdings and the Borrower, in each case on a consolidated basis, after
giving effect to the Transactions is solvent.

 

(c)  The Administrative Agent shall have
received (i) a copy of the certificate or articles of incorporation,
including all amendments thereto, of each Loan Party, certified as of a recent
date by the Secretary of State of the state of its organization, and a certificate
as to the good standing of each Loan Party as of a recent date, from such
Secretary of State; (ii) a certificate of the Secretary or Assistant
Secretary of each Loan Party dated the Closing Date and certifying (A) that
attached thereto is a true and complete copy of the by-laws of such Loan Party
as in effect on the Closing Date and at all times since a date prior to the
date of the resolutions described in clause (B) below, (B) that
attached thereto is a true and complete copy of resolutions duly adopted by the
Board of Directors of such Loan Party authorizing the execution, delivery and
performance of the Loan Documents to which such person is a party and, in the
case of the Borrower, the borrowings hereunder, and that such resolutions have
not been modified, rescinded or amended and are in full force and effect, (C) that
the certificate or articles of incorporation of such Loan Party have not been
amended since the date of the last amendment thereto shown on the certificate
of good standing furnished pursuant to clause (i) above, and (D) as
to the incumbency and specimen signature of each officer executing any Loan
Document or any other document delivered in connection herewith on behalf of
such Loan Party; (iii) a certificate of another officer as to the
incumbency and specimen signature of the Secretary or Assistant Secretary
executing the certificate pursuant to clause (ii) above; and (iv) such
other 

 

61

 

documents as the Lenders, the Issuing Bank or the Administrative Agent
may reasonably request.

 

(d)  The Administrative Agent shall have
received a certificate, dated the Closing Date and signed by the chief
executive officer or a Financial Officer of Holdings, confirming compliance
with the conditions precedent set forth in paragraphs (b) and (c) of
Section 4.01.

 

(e)  The Administrative Agent shall have
received all Fees and other amounts due and payable on or prior to the Closing
Date, including, to the extent invoiced, reimbursement or payment of all
out-of-pocket expenses required to be reimbursed or paid by the Borrower
hereunder or under any other Loan Document.

 

(f)  Except as provided in Section 5.12(b),
the Security Documents shall have been duly executed by each Loan Party that is
to be a party thereto and shall be in full force and effect on the Closing
Date. The Collateral Agent on behalf of the Secured Parties shall have a
security interest in the Collateral of the type and priority described in each
Security Document.

 

(g)  The Collateral Agent shall have
received a Perfection Certificate with respect to the Loan Parties dated the
Closing Date and duly executed by a Responsible Officer of the Borrower, and
shall have received the results of a search of the Uniform Commercial Code
filings (or equivalent filings) made with respect to the Loan Parties in the
states (or other jurisdictions) of formation of such persons as indicated on
such Perfection Certificate, together with copies of the financing statements
(or similar documents) disclosed by such search, and accompanied by evidence
reasonably satisfactory to the Collateral Agent that any Liens indicated in any
such financing statement (or similar document) would be permitted under Section 6.02
or have been or will be contemporaneously released or terminated.

 

(h)  (i)  Except as provided in Section 5.12(b),
the Mortgages, in form and substance reasonably satisfactory to the Collateral
Agent relating to each of the Mortgaged Properties shall have been duly
executed by the parties thereto and delivered to the Collateral Agent and shall
be in full force and effect, (ii) each of such Mortgaged Properties shall
not be subject to any Lien other than those permitted under Section 6.02
or the applicable Mortgage, (iii) each of such Security Documents shall
have been filed and recorded in the recording office as specified on Schedule
3.19(c) (or a lender’s title insurance policy (or marked title commitment
subject to no further conditions to issuance of a title insurance policy), in
form and substance acceptable to the Collateral Agent, insuring such Mortgage
as a first lien on such Mortgaged Property (subject to any Lien permitted by Section 6.02
or the applicable Mortgage) shall have been received by the Collateral Agent)
and, in connection therewith, the Collateral Agent shall have received evidence
satisfactory to it of each such filing and recordation and (iv) the
Collateral Agent shall have received such other documents, including a policy
or policies of title insurance issued by a nationally recognized title
insurance company (or marked title commitment subject to no further conditions
to issuance of a title

 

62

 

insurance policy), insuring the Mortgages as
valid first liens on the Mortgaged Properties, free of Liens other than those
permitted under Section 6.02 or the applicable Mortgage, together with such
surveys, abstracts and legal opinions as may be reasonably requested by the
Collateral Agent.

 

(i)  The Administrative Agent shall have received a
copy of, or a certificate as to coverage under, the insurance policies required
by Section 5.02, each of which shall be endorsed or otherwise amended to
include a customary lender’s loss payable endorsement under the Property
Insurance Policy and to name the Collateral Agent as additional insured under
the General Liability Policy as per the Standard Additional Insured Mortgagee,
Assignee or Receiver endorsement, in form and substance reasonably satisfactory
to the Administrative Agent (it being acknowledged that insurance substantially
similar to the current coverage of Holdings and its Subsidiaries, is
satisfactory).

 

(j)  The Existing Debt Refinancing shall have occurred
and the Administrative Agent shall have received reasonably satisfactory
evidence thereof.  Immediately after
giving effect to the Transactions and the other transactions contemplated
hereby, Holdings and the Subsidiaries shall have outstanding no Indebtedness or
preferred stock other than (i) Indebtedness outstanding under this Agreement, (ii)
the Preferred Stock and (iii) Indebtedness set forth on Schedule 6.01.

 

(k)  There shall be no litigation, governmental,
administrative or judicial action that restrains or prevents the Transactions
or the other transactions contemplated hereby.

 

(l)  The Administrative Agent shall have received,
at least five Business Days prior to the Closing Date, all documentation and
other information required by regulatory authorities under applicable “know
your customer” and anti-money laundering rules and regulations, including the
USA PATRIOT Act.

 

ARTICLE V

 

Affirmative Covenants

 

Each of
Holdings and the Borrower covenants and agrees with each Lender that so long as
this Agreement shall remain in effect and until the Commitments have been
terminated and the principal of and interest on each Loan, all Fees and all
other expenses or amounts payable under any Loan Document (other than
contingent indemnification obligations for which no claim has been made) shall
have been paid in full and all Letters of Credit have been canceled or have
expired (or other arrangements reasonably satisfactory to the Administrative
Agent and the Issuing Bank shall have been made with respect thereto) and all
amounts drawn thereunder have been reimbursed in full, unless the Required
Lenders shall otherwise consent in writing, the Borrower will, and will cause
each of the Subsidiaries to:

 

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SECTION 5.01.  Existence; Compliance with Laws; Businesses and Properties.  (a)  Do
or cause to be done all things necessary to preserve, renew and keep in full
force and effect its legal existence, except as otherwise expressly permitted
under Section 6.05.

 

(b)  Do or cause to be done all things necessary to
obtain, preserve, renew, extend and keep in full force and effect the rights,
licenses, permits, franchises, authorizations, patents, copyrights, trademarks
and trade names material to the conduct of its business; provided,
however, that neither the Borrower nor
the Subsidiaries shall be required to preserve any such rights, licenses,
permits, franchises, authorizations, patents, copyrights, trademarks and trade
names if the preservation thereof is no longer desirable in the conduct of the
business of the Borrower and its Subsidiaries or the loss thereof could not
reasonably be expected to result in a Material Adverse Effect; comply in all
material respects with all applicable laws, rules, regulations and decrees and
orders of any Governmental Authority, whether now in effect or hereafter
enacted; and at all times maintain and preserve all property material to the
conduct of such business and keep such property in good repair, working order
and condition, ordinary wear and tear, obsolescence and casualty excepted.

 

SECTION 5.02.  Insurance. 
(a)  Keep its insurable properties
adequately insured at all times by financially sound and reputable insurers;
maintain such other insurance, to such extent and against such risks, including
fire and other risks insured against by extended coverage, as is prudent in the
good faith judgment of the Borrower, including public liability insurance
against claims for personal injury or death or property damage occurring upon,
in, about or in connection with the use of any properties owned, occupied or
controlled by it; and maintain such other insurance as may be required to
comply with applicable law.

 

(b)  Cause all such policies covering any
Collateral to be endorsed or otherwise amended to include Standard Loss
Payee/Lender’s Loss Payee Endorsement substantially in the form provided on the
Closing Date under the Property Insurance Policy (or on another form
satisfactory to the Administrative Agent and the Collateral Agent) and insure
such property on a replacement cost basis.

 

(c)  If at any time the area in which the Premises
(as defined in the Mortgages) are located is designated (i) a “flood hazard
area” in any Flood Insurance Rate Map published by the Federal Emergency Management
Agency (or any successor agency), obtain flood insurance in such total amount
as the Administrative Agent, the Collateral Agent or the Required Lenders may
from time to time reasonably require, and otherwise comply with the National
Flood Insurance Program as set forth in the Flood Disaster Protection Act of
1973, as it may be amended from time to time, or (ii) a “Zone 1” area, obtain
earthquake insurance in such total amount as the Administrative Agent, the
Collateral Agent or the Required Lenders may from time to time reasonably
require.

 

64

 

(d)  Notify the Administrative Agent and the
Collateral Agent promptly whenever any separate insurance concurrent in form or
contributing in the event of loss with that required to be maintained under
this Section 5.02 is taken out by any Loan Party; and promptly deliver to the
Administrative Agent and the Collateral Agent a duplicate original copy of such
policy or policies.

 

SECTION 5.03.  Obligations and Taxes..  Pay its Indebtedness and other obligations
promptly and pay and discharge promptly when due all Taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits or
in respect of its property, before the same shall become delinquent or in
default, as well as all lawful claims for labor, materials and supplies or
otherwise that, if unpaid, might give rise to a Lien upon such properties or
any part thereof, except where the failure to pay or perform such items could
not reasonably be expected to have a Material Adverse Effect; provided, however,
that such payment and discharge shall not be required with respect to any such
Tax, assessment, charge, levy or claim so long as the validity or amount
thereof shall be contested in good faith by appropriate proceedings and the
Borrower shall have set aside on its books adequate reserves with respect
thereto in accordance with GAAP and such contest operates to suspend
enforcement of a Lien and, in the case of a Mortgaged Property, there is no
risk of forfeiture of such property.

 

SECTION 5.04.  Financial Statements, Reports, etc.  In the case of Holdings, furnish to the
Administrative Agent who will distribute to each Lender:

 

(a) within 120 days after the
end of each fiscal year, commencing with the fiscal year ending December 31,
2010, its consolidated balance sheet and related statements of income,
stockholders’ equity and cash flows showing the financial condition of Holdings
and its consolidated Subsidiaries as of the close of such fiscal year and the
results of its operations and the operations of such Subsidiaries during such
year, together with comparative figures for the immediately preceding fiscal
year, all audited by KPMG L.L.P. or other independent public accountants of recognized
national standing and accompanied by an opinion of such accountants (which
opinion shall be without a “going concern” explanatory note or any similar
qualification or exception and without any qualification or exception as to the
scope of such audit) to the effect that such consolidated financial statements
fairly present in all material respects the financial condition and results of
operations of the Borrower and its consolidated Subsidiaries on a consolidated
basis in accordance with GAAP (except as otherwise expressly noted therein)
consistently applied;

 

(b) within 45 days after the
end of each of the first three fiscal quarters of each fiscal year, beginning
with the fiscal quarter ending March 31, 2010, its consolidated balance sheet
and related statements of income, stockholders’ equity and cash flows showing
the financial condition of Holdings and its consolidated Subsidiaries as of the
close of such fiscal quarter and the results of its operations and the
operations of such Subsidiaries during such fiscal quarter and the then elapsed
portion of the fiscal year, and comparative figures for the same periods in the
immediately preceding fiscal year, all certified by one of its Financial
Officers 

 

65

 

as fairly presenting in all material respects
the financial condition and results of operations of Holdings and its
consolidated Subsidiaries on a consolidated basis in accordance with GAAP
(except as otherwise expressly noted therein) consistently applied, subject to
normal year-end audit adjustments and the absence of footnotes;

 

(c) concurrently with any
delivery of financial statements under paragraph (a) above, a certificate of
the accounting firm opining on such statements (which certificate may be
limited to accounting matters and disclaim responsibility for legal
interpretations) (i) certifying that no Event of Default or Default has
occurred with respect to Section 6.10 or 6.11 or, if such an Event of Default
or Default has occurred, specifying the extent thereof and (ii) setting forth
computations in reasonable detail satisfactory to the Administrative Agent
demonstrating compliance with the covenants contained in Sections 6.10 and 6.11
and setting forth the calculation of Excess Cash Flow;

 

(d) concurrently with any
delivery of financial statements under paragraph (a) or (b) above in respect of
any period ending after the Closing Date, a certificate of a Financial Officer (i)
certifying that no Event of Default or Default has occurred or, if such an
Event of Default or Default has occurred, specifying the nature and extent
thereof and any corrective action taken or proposed to be taken with respect
thereto and (ii) in the case of a certificate delivered with the financial
statements required by paragraph (b) above, setting forth computations in
reasonable detail satisfactory to the Administrative Agent demonstrating
compliance with the covenants contained in Sections 6.10 and 6.11 and
describing any use during the preceding fiscal quarter of the Borrower’s
Portion of Excess Cash Flow;

 

(e) not later than 45 days
after the commencement of each fiscal year of Holdings, a detailed consolidated
budget for such fiscal year, including a projected consolidated balance sheet
and related statements of projected operations and cash flows as of the end of
and for such fiscal year and setting forth the significant assumptions used for
purposes of preparing such budget (it being understood that projections are
subject to inherent uncertainties) and, promptly when available, any
significant revisions of such budget;

 

(f) promptly after the same
become publicly available, copies of all periodic and other material reports,
proxy statements and other materials filed by Holdings or any Subsidiary with
the Securities and Exchange Commission, or any Governmental Authority
succeeding to any or all of the functions of said Commission, or (after a
Qualified Public Offering) distributed to its shareholders, as the case may be
(following a Qualified Public Offering, filing such reports, statements or
other materials with the Securities Exchange Commission, together with
electronically sending a link to such filings to the Administrative Agent at
the time of filing thereof, shall satisfy the requirements of this paragraph (f));

 

66

 

(g) promptly after the receipt
thereof by Holdings or any of its Subsidiaries, a copy of any “management
letter” (whether in final or draft form) received by any such person from its
certified public accountants and the management’s response thereto;

 

(h) promptly after the request
by any Lender, all documentation and other information that such Lender
reasonably requests in order to comply with its ongoing obligations under
applicable “know your customer” and anti-money laundering rules and
regulations, including the USA PATRIOT Act; and

 

(i) promptly, from time to
time, such other information regarding the operations, business affairs and
financial condition of Holdings or any Subsidiary, or compliance with the terms
of any Loan Document, as the Administrative Agent or any Lender may reasonably
request.

 

SECTION 5.05.  Litigation and Other Notices.  Furnish to the Administrative Agent promptly
after it is known to a Responsible Officer written notice, of the following:

 

(a) any Event of Default or
Default, specifying the nature and extent thereof and the corrective action (if
any) taken or proposed to be taken with respect thereto;

 

(b) the filing or commencement
of, or any threat or notice of intention of any person to file or commence, any
action, suit or proceeding, whether at law or in equity or by or before any
Governmental Authority, against the Borrower or any Affiliate thereof that
could reasonably be expected to result in a Material Adverse Effect;

 

(c) the occurrence of any ERISA
Event that, alone or together with any other ERISA Events that have occurred,
could reasonably be expected to result in liability of the Borrower and the
Subsidiaries in an aggregate amount exceeding $2,500,000;

 

(d) Promptly after Holdings or
any Subsidiary has knowledge of any material violation, claim, complaint,
charge or receipt of any material violation, claim, complaint or charge of or
under the Food and Drug Act or any material applicable statutes, rules, regulations,
guidelines, policies, orders or directives administered or issued by the FDA,
including receipt by Holdings or any of its Subsidiaries of any Product Recall
Notice, other FDA notice satisfying the foregoing materiality standard or
amendment to such a previous Product Recall Notice or FDA notice that is
required to be disclosed under this Section 5.05(d), a statement of a
Responsible Officer setting forth the material details of such occurrence and
the actions, if any, which Holdings or such Subsidiary proposes to take with
respect thereto and in the case of a written document evidencing such event,
together with a true, correct and complete copy of such Product Recall Notice,
FDA Notice or amendment or other notice, as the case may be (other than 

 

67

 

to the extent that provision of such
documents or information to the Administrative Agent and the Lenders would
invalidate any privileged status granted by such Governmental Authority with
respect to such documents or information, in which case, Holdings or such
Subsidiary shall furnish a summary of the documents or information so provided
that does not invalidate such privilege);

 

(e) any development that has
resulted in, or could reasonably be expected to result in, a Material Adverse
Effect; and

 

(f) any change in the Borrower’s
corporate rating or corporate family rating by S&P or Moody’s,
respectively, or any change in the ratings of the Credit Facilities by S&P
or Moody’s, or any notice from either such agency indicating its intent to
effect such a change or to place the Borrower or the Credit Facilities on a “CreditWatch”
or “WatchList” or any similar list, in each case with negative implications, or
its cessation of, or its intent to cease, rating the Borrower or the Credit
Facilities.

 

SECTION 5.06.  Information Regarding Collateral.  (a)  Furnish to the Administrative Agent prompt
written notice of any change (i) in any Loan Party’s corporate name, (ii) in
the jurisdiction of organization or formation of any Loan Party, (iii) in any
Loan Party’s identity or corporate structure or (iv) in any Loan Party’s
Federal Taxpayer Identification Number. Holdings and the Borrower agree not to
effect or permit any change referred to in the preceding sentence unless all
filings have been made under the Uniform Commercial Code or otherwise that are
required in order for the Collateral Agent to continue at all times following
such change to have a valid, legal and perfected security interest in all the
Collateral to the same extent as before any such change. Holdings and the
Borrower also agree promptly to notify the Administrative Agent if any material
portion of the Collateral is damaged or destroyed.

 

(b)  In the case of Holdings, at the time of
delivery of the financial statements required by Section 5.04(a), deliver to
the Administrative Agent a certificate of a Financial Officer setting forth the
information required pursuant to Section 2 of the Perfection Certificate or
confirming that there has been no change in such information since the date of
the Perfection Certificate delivered on the Closing Date or the date of the
most recent certificate delivered pursuant to this Section 5.06.

 

SECTION 5.07.  Maintaining Records; Access to Properties and Inspections;
Maintenance of Ratings.  (a)
 Keep proper books of record and account
in which full, true and correct entries in all material respects in conformity
with GAAP and all requirements of law are made of all dealings and transactions
in relation to its business and activities. Each Loan Party will, and will
cause each of its subsidiaries to, permit any representatives designated by the
Administrative Agent or any Lender to visit and inspect the financial records
and the properties of such person from time to time upon prior reasonable
notice and at such times during normal business hours and to make extracts from
and copies of such financial records, and permit any representatives designated
by 

 

68

 

the Administrative Agent or any
Lender to discuss the affairs, finances and condition of such person with the
officers thereof and (provided that a representative of Holdings is given the
opportunity to be present) independent accountants therefor, all at the cost of
the Borrower; provided that
except during the existence of an Event of Default, the Borrower shall not be
responsible for the costs of more than one visit per fiscal year.

 

(b)  In the case of the Borrower, use commercially
reasonable efforts to maintain a corporate rating from S&P and a corporate
family rating from Moody’s, and to cause the Credit Facilities to be
continuously publicly rated by S&P and Moody’s.

 

SECTION 5.08.  Use of Proceeds.  Use the proceeds of the Loans and request the
issuance of Letters of Credit only for the purposes specified in the
introductory statement to this Agreement.

 

SECTION 5.09.  Employee Benefits.  (a) Comply in all material respects with the
applicable provisions of ERISA and the Code and the laws applicable to any
Foreign Pension Plan and (b) furnish to the Administrative Agent as soon as
possible after, and in any event within ten days after any responsible officer
of Holdings or the Borrower knows that, any ERISA Event has occurred that,
alone or together with any other ERISA Event could reasonably be expected to
result in liability of Holdings, the Borrower and its Subsidiaries in an
aggregate amount exceeding $2,500,000, a statement of a Financial Officer of
the Borrower setting forth details as to such ERISA Event and the action, if
any, that Holdings or the Borrower proposes to take with respect thereto.

 

SECTION 5.10.  Compliance with Environmental Laws.  Comply, and cause all lessees and other
persons occupying its properties to comply, in all material respects, with all
Environmental Laws applicable to its operations and properties; obtain and
renew all material environmental permits necessary for its operations and
properties; and conduct any remedial action in accordance in all material
respects with Environmental Laws; provided,
however, that none of Holdings,
the Borrower or any Subsidiary shall be required to undertake any remedial
action required by Environmental Laws to the extent that its obligation to do
so is being contested in good faith and by proper proceedings and appropriate
reserves are being maintained with respect to such circumstances in accordance
with GAAP.

 

SECTION 5.11.  Preparation of Environmental Reports.  If a Default caused by reason of a breach of Section
3.17 or Section 5.10 shall have occurred and be continuing for more than 30
days without Holdings, the Borrower or any Subsidiary commencing activities
reasonably likely to cure such Default, at the written request of the Required
Lenders through the Administrative Agent, provide to the Lenders within 45 days
after such request, at the expense of the Loan Parties, an environmental site
assessment report regarding the matters which are the subject of such Default
prepared by an environmental consulting firm reasonably acceptable to the
Administrative Agent and indicating the presence or absence of Hazardous
Materials and the estimated cost of any compliance or remedial action in
connection with such Default.

 

69

 

SECTION 5.12.  Further Assurances.  (a) Execute any and all further documents,
financing statements, agreements and instruments, and take all further action
(including filing Uniform Commercial Code and other financing statements,
mortgages and deeds of trust) that may be required under applicable law, or
that the Required Lenders, the Administrative Agent or the Collateral Agent may
reasonably request, in order to effectuate the transactions contemplated by the
Loan Documents and in order to grant, preserve, protect and perfect the
validity and first priority of the security interests created or intended to be
created hereunder and by the Security Documents.  Holdings will cause any subsequently acquired
or organized Domestic Subsidiary (other than any Domestic Subsidiary that is a
subsidiary of a Foreign Subsidiary) to become a Loan Party by executing or
joining the Guarantee and Collateral Agreement and each applicable Security
Document in favor of the Collateral Agent. In addition, from time to time,
Holdings will, at its cost and expense, promptly secure the Obligations by
pledging or creating, or causing to be pledged or created, perfected security
interests with respect to such of its assets and properties as the
Administrative Agent or the Required Lenders shall designate (it being understood
that it is the intent of the parties that the Obligations shall be secured by
substantially all the assets of Holdings and its Domestic Subsidiaries
(including real and other properties acquired subsequent to the Closing Date))
except for (i) Equity Interests of any Foreign Subsidiary, other than 100% of
the non-voting Equity Interests (if any) and 65% of the voting Equity
Interests, in each case of a Foreign Subsidiary the Equity Interests of which
are owned directly by Holdings or a Domestic Subsidiary, (ii) vehicles,
leaseholds and owned real property with a value of less than $1,000,000, (iii) assets
as to which the Administrative Agent has reasonably determined that the costs
of obtaining such a security interest are excessive in relation to the value of
the security to be afforded thereby, (iv) assets with respect to which the
granting or perfecting of such security interest would violate any applicable
law or the enforceable anti-assignment provisions of, or result in termination
of, default under or other adverse consequences with respect to, any contract,
and (v) assets subject to Liens permitted by Section 6.02(c), (f), (g), (i) or
(l), to the extent and for so long as the terms of the Indebtedness or
obligations secured by such Liens do not allow the Obligations to be secured by
such assets. Such security interests and Liens will be created under the
Security Documents and other security agreements, mortgages, deeds of trust and
other instruments and documents in form and substance reasonably satisfactory
to the Collateral Agent, and Holdings shall deliver or cause to be delivered to
the Lenders all such instruments and documents (including legal opinions, title
insurance policies and lien searches) as the Collateral Agent shall reasonably
request to evidence compliance with this Section. Holdings and the Borrower
agree to provide such evidence as the Collateral Agent shall reasonably request
as to the perfection and priority status of each such security interest and
Lien.  In furtherance of the foregoing,
the Borrower will give prompt notice to the Administrative Agent and the
Lenders of the acquisition by it or any of the Subsidiaries of any owned real
property having a value in excess of $1,000,000.

 

(b) As soon as practicable but
in any event within 60 days after the Closing Date (or such later date that the
Administrative Agent in its sole discretion may permit), the Borrower shall
take or cause its Subsidiaries to take the actions set forth on Schedule 5.12.

 

70

 

SECTION 5.13.  Interest Rate Protection.  No later than the 120th day after the Closing
Date, the Borrower shall enter into, and for a minimum of two years thereafter
maintain, Hedging Agreements reasonably acceptable to the Administrative Agent
that result in at least 50% of the aggregate principal amount of the
outstanding Term Loans being effectively subject to a fixed or maximum interest
rate reasonably acceptable to the Administrative Agent.

 

ARTICLE VI

 

Negative Covenants

 

Each of Holdings
and the Borrower covenants and agrees with each Lender that, so long as this
Agreement shall remain in effect and until the Commitments have been terminated
and the principal of and interest on each Loan, all Fees and all other expenses
or amounts payable under any Loan Document (other than contingent
indemnification obligations for which no claim has been made) have been paid in
full and all Letters of Credit have been cancelled or have expired (or other
arrangements reasonably satisfactory to the Administrative Agent and the
Issuing Bank have been made with respect thereto) and all amounts drawn
thereunder have been reimbursed in full, unless the Required Lenders shall
otherwise consent in writing, neither Holdings nor the Borrower will, nor will
they cause or permit any of the Subsidiaries to:

 

SECTION 6.01.  Indebtedness. 
Incur, create, assume or permit to exist any Indebtedness, except:

 

(a) Indebtedness existing on
the date hereof and set forth on Schedule 6.01(a) and any refinancings,
refunding, renewals or extensions thereof; provided that (i) the amount of such
Indebtedness is not increased at the time of such refinancing, refunding,
renewal or extension except by any interest capitalized in connection therewith
and an amount equal to a reasonable premium or other reasonable amount paid,
and fees and expenses reasonably incurred, in connection with such refinancing,
(ii) such refinancing Indebtedness has a later or equal final maturity and a
longer or equal average life than the Indebtedness being renewed or refinanced
and (iii) the covenants, events of default, subordination and other provisions
thereof (including any guarantees thereof) shall be, in the aggregate, no less
favorable to the Lenders or the relevant Subsidiary than those contained in the
Indebtedness being renewed or refinanced;

 

(b) Indebtedness created
hereunder and under the other Loan Documents;

 

(c) Shareholder Subordinated
Notes in an aggregate principal amount up to $150,000,000; provided that no Default or Event of
Default exists and is continuing at the time of the incurrence of such
Indebtedness or would be caused thereby on a pro forma basis;

 

(d) intercompany Indebtedness
of the Borrower and the Subsidiaries to the extent permitted by Section 6.04(c);

 

71

 

(e) Indebtedness of the
Borrower or any Subsidiary incurred to finance the acquisition, construction,
improvement, replacement or repair of any fixed or capital assets, and
extensions, renewals and replacements of any such Indebtedness that do not
increase (other than such extensions, renewals or replacements) the outstanding
principal amount thereof; provided that (i) such Indebtedness is incurred prior
to or within 180 days after such acquisition or replacement or the completion
of such construction, improvement or repair and (ii) the aggregate principal
amount of Indebtedness permitted by this Section 6.01(e), when combined with
the aggregate principal amount of all Capital Lease Obligations and Synthetic
Lease Obligations incurred pursuant to Section 6.01(f) shall not exceed
$5,000,000 at any time outstanding;

 

(f) Capital Lease Obligations
and Synthetic Lease Obligations in an aggregate principal amount, when combined
with the aggregate principal amount of all Indebtedness incurred pursuant to Section
6.01(e), not in excess of $5,000,000 at any time outstanding;

 

(g) Indebtedness under
performance bonds, surety bonds, release, appeal and similar bonds, statutory
obligations or with respect to workers’ compensation claims, in each case
incurred in the ordinary course of business, and reimbursement obligations in
respect of any of the foregoing;

 

(h) Indebtedness incurred by
Foreign Subsidiaries in an aggregate principal amount not exceeding $5,000,000
at any time outstanding;

 

(i) Guarantees of Holdings, the
Borrower and the Subsidiaries in respect of Indebtedness otherwise permitted
hereunder (other than Indebtedness incurred pursuant to paragraph (l) below);

 

(j) Indebtedness consisting of
promissory notes issued by Holdings and its Subsidiaries to current or former
officers, directors, employees and consultants (or their family members or
estates or trusts or other entities for the benefit of any of the foregoing
persons) of Holdings or its Subsidiaries to purchase or redeem capital stock or
options of Holdings or otherwise in connection with stock appreciation rights
or similar equity incentives or equity based incentives; provided that (i) such Indebtedness
matures at least one year after the Term Loan Maturity Date and requires no
payment of principal prior to its maturity, (ii) such Indebtedness is
subordinated to the Obligations on terms reasonably acceptable to the
Administrative Agent and (iii) the aggregate principal amount of all such
Indebtedness shall not exceed $3,000,000 at any time outstanding;

 

(k) the accrual of interest,
the accretion or amortization of original issue discount, or the payment of
interest on any Indebtedness of Holdings, the Borrower and the Subsidiaries in
the form of additional Indebtedness with the same terms;

 

72

 

(l) Indebtedness of any person
existing at the time such person is acquired by Holdings, the Borrower or a
Subsidiary in connection with any Permitted Acquisition and not incurred in
anticipation or contemplation thereof in an aggregate principal amount at any
time outstanding not in excess of $10,000,000 and any refinancings, refunding,
renewals or extensions thereof; provided
that (i) the amount of such Indebtedness is not increased at the time of such
refinancing, refunding, renewal or extension except by any interest capitalized
in connection therewith and an amount equal to a reasonable premium or other
reasonable amount paid, and fees and expenses reasonably incurred, in connection
with such refinancing, (ii) such refinancing Indebtedness has a later or equal
final maturity and a longer or equal average life than the Indebtedness being
renewed or refinanced and (iii) the covenants, events of default, subordination
and other provisions thereof (including any guarantees thereof) shall be, in
the aggregate, no less favorable to the Lenders or the relevant Subsidiary than
those contained in the Indebtedness being renewed or refinanced;

 

(m)  Permitted Subordinated Debt in an aggregate
principal amount not exceeding $30,000,000 (plus any interest thereon that is
accrued or paid-in-kind) at any time outstanding;

 

(n) Capital Lease Obligations,
Synthetic Lease Obligations and other Indebtedness incurred in connection with,
or to finance, the acquisition, lease or improvement of a new headquarters for
Holdings and the Subsidiaries, and extensions, renewals and replacements of any
such Indebtedness, that do not increase the outstanding principal amount
thereof; provided that (i) such
Indebtedness (other than such extensions, renewals and replacements) is
incurred prior to or within 180 days after such acquisition, lease or
improvement and (ii) the aggregate principal amount of all such Indebtedness
shall not exceed $20,000,000 at any time outstanding;

 

(o) Indebtedness of Holdings,
the Borrower or the Subsidiaries in respect of overdrafts and related
liabilities and/or arising from cash management services (including treasury,
depository, overdraft, credit, purchasing or debit card, electronic funds
transfer, netting, ACH services and other cash management arrangements), in
each case owed to a counterparty that is the Administrative Agent, a Lender or
an Affiliate of the Administrative Agent or a Lender; and

 

(p) other unsecured Indebtedness
of the Borrower or the Subsidiaries in an aggregate principal amount not
exceeding $10,000,000 at any time outstanding.

 

SECTION 6.02.  Liens. 
Create, incur, assume or permit to exist any Lien on any property or
assets (including Equity Interests or other securities of any person, including
any Subsidiary) now owned or hereafter acquired by it or on any income or
revenues or rights in respect of any thereof, except:

 

(a) Liens on property or assets
of the Borrower and its Subsidiaries existing on the date hereof and set forth
in Schedule 6.02; provided that
such 

 

73

 

Liens shall secure only those obligations
which they secure on the date hereof and extensions, renewals and replacements
thereof permitted hereunder;

 

(b) any Lien created under the
Loan Documents;

 

(c) any Lien existing on any
property or asset prior to the acquisition thereof by the Borrower or any
Subsidiary or existing on any property or assets of any person that becomes a
Subsidiary after the date hereof prior to the time such person becomes a
Subsidiary, as the case may be; provided
that (i) such Lien is not created in contemplation of or in connection with
such acquisition or such person becoming a Subsidiary, (ii) such Lien does not apply
to any other property or assets of the Borrower or any Subsidiary and (iii) such
Lien secures only those obligations which it secures on the date of such
acquisition or the date such person becomes a Subsidiary, as the case may be,
and any replacements, renewals and extensions thereof (provided that the property covered thereby
is not increased and any replacement, renewal or extension of the obligations
secured or benefited thereby is permitted by Section 6.01);

 

(d) Liens for Taxes not yet due
or which are being contested in compliance with Section 5.03;

 

(e) carriers’, warehousemen’s,
mechanics’, materialmen’s, repairmen’s or other like Liens arising in the
ordinary course of business and securing obligations that are not due and
payable or which are being contested in compliance with Section 5.03;

 

(f) pledges and deposits made
in the ordinary course of business in compliance with workmen’s compensation,
unemployment insurance and other social security laws or regulations or in
connection with performance bonds, surety bonds or statutory obligations, or
with respect to workers’ compensation claims;

 

(g) deposits to secure the
performance of bids, trade contracts (other than for Indebtedness), liability
to insurance carriers, leases (other than Capital Lease Obligations), statutory
obligations, surety and appeal bonds, performance bonds and other obligations
of a like nature incurred in the ordinary course of business;

 

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

 

(i) purchase money Liens in
real property, improvements thereto, equipment or other fixed or capital assets
hereafter acquired (or, in the case of improvements, constructed) by the
Borrower or any Subsidiary; provided
that (i) such Liens secure Indebtedness permitted by Section 6.01, (ii) such
Liens are incurred, and the Indebtedness (other than permitted replacements,
renewals or 

 

74

 

extensions thereof) secured thereby is
created, within 180 days after such acquisition (or construction or
improvement), (iii) the Indebtedness secured thereby does not exceed the lesser
of the cost or the fair market value of such real property, improvements or
equipment at the time of such acquisition (or construction or improvement) and (iv)
such Liens do not apply to any other property or assets of the Borrower or any
Subsidiary;

 

(j) Liens arising out of
judgments or awards in respect of which Holdings or any of the Subsidiaries
shall in good faith be prosecuting an appeal or proceedings for review in
respect of which there shall be secured a subsisting stay of execution pending
such appeal or proceedings; provided
that the aggregate amount of all such judgments or awards (and any cash and the
fair market value of any property subject to such Liens) does not exceed
$5,000,000 at any time outstanding;

 

(k) Liens on assets of Foreign
Subsidiaries; provided that (i) such
Liens do not extend to, or encumber, assets that constitute Collateral or the
Equity Interests of the Borrower or any of the Subsidiaries, and (ii) such
Liens extending to the assets of any Foreign Subsidiary secure only
Indebtedness incurred by such Foreign Subsidiary pursuant to Section 6.01(h) or
(l);

 

(l) Liens in connection with
Indebtedness permitted by Section 6.01(e), (f) or (n) as long as such Liens do
not at any time encumber any property other than the property financed by such
Indebtedness;

 

(m) (i) any interest or title
of a lessor, sublicensor, or licensor under any lease or license entered into
in the ordinary course of business and covering only the assets so leased or
licensed, and (ii) licenses, sublicenses, leases or subleases granted to third
persons in the ordinary course of business not interfering in any material
respect with the business of the Borrower or the Subsidiaries;

 

(n) rights of setoff or bankers’
liens upon deposits of cash in favor of banks or other financial institutions
in the ordinary course of business;

 

(o) Liens arising from
precautionary UCC financing statements regarding operating leases or
consignments;

 

(p) (i) contractual or
statutory Liens of landlords to the extent relating to the property and assets
relating to any lease agreements with such landlord, (ii) contractual Liens of
suppliers (including sellers of goods) to the extent limited to property or
assets relating to such contract, (iii) contractual or statutory Liens of
governmental or other customers to the extent limited to the property or assets
relating to such contract, and (iv) Liens in favor of governmental bodies to
secure advance or progress payments pursuant to any contract or statute;

 

(q) customary restrictions
imposed on the transfer of licensed copyrighted or patented materials or other
licensed intellectual property and customary 

 

75

 

provisions in agreements that restrict the
assignment of such agreements or any rights thereunder;

 

(r) Liens granted to sellers or
licensors of assets or rights to the Borrower or any Subsidiary where the
Borrower or such Subsidiary has not paid the purchase price or license amounts
in full, or where the Borrower or such Subsidiary may owe the seller or
licensor future payments for the asset or rights; provided that (i) such Liens
are restricted to the assets being sold or rights being licensed, and (ii) such
Liens will be terminated when the purchase price or license amounts are paid in
full by the Borrower or such Subsidiary; and

 

(s) other Liens securing obligations,
and on property with a fair market value, in an aggregate amount that does not
exceed $5,000,000 at any time outstanding.

 

SECTION 6.03.  Sale and Lease-Back Transactions.  Enter into any arrangement, directly or
indirectly, with any person whereby it shall sell or transfer any property,
real or personal, used or useful in its business, whether now owned or
hereafter acquired, and thereafter rent or lease such property or other
property which it intends to use for substantially the same purpose or purposes
as the property being sold or transferred unless (a) the sale or transfer of
such property is permitted by Section 6.05 and (b) any Capital Lease
Obligations, Synthetic Lease Obligations or Liens arising in connection
therewith are permitted by Sections 6.01 and 6.02, as the case may be.

 

SECTION 6.04.  Investments, Loans and Advances.  Purchase, hold or acquire any Equity
Interests, evidences of indebtedness or other securities of, make or permit to
exist any loans or advances to, or make or permit to exist any investment or
any other interest in, any other person, except:

 

(a) (i) investments by
Holdings, the Borrower and the Subsidiaries existing on the Closing Date in the
Equity Interests of the Borrower and the Subsidiaries and (ii) additional investments
by Holdings, the Borrower and the Subsidiaries in the Equity Interests of the
Borrower and the Subsidiaries made after the Closing Date; provided that (A) any such Equity
Interests held by a Loan Party shall be pledged pursuant to the Guarantee and
Collateral Agreement (subject to the limitations applicable to voting stock of
a Foreign Subsidiary referred to therein) and (B) the aggregate amount of
investments made after the Closing Date by Loan Parties in, and loans and
advances by Loan Parties to, Subsidiaries that are not Loan Parties (without
any adjustments for increases or decreases in value, or write-ups, write-downs
or write-offs with respect to such investment, loan or advance) minus the
amount of cash and cash equivalents returned or repaid with respect to such
investments, loans and advances) shall not exceed $5,000,000 at any time
outstanding;

 

(b) Permitted Investments;

 

76

 

(c) loans or advances made by
Holdings or the Borrower to any Subsidiary and made by any Subsidiary to
Holdings, the Borrower or any other Subsidiary; provided that (i) if such loans and advances made by a Loan
Party are evidenced by a promissory note, it shall be pledged to the Collateral
Agent for the ratable benefit of the Secured Parties pursuant to the Guarantee
and Collateral Agreement and (ii) the amount of such loans and advances made by
Loan Parties to Subsidiaries that are not Loan Parties shall be subject to the
limitation set forth in clause (a) above;

 

(d) investments received in
connection with the bankruptcy or reorganization of, or settlement of
delinquent accounts and disputes with, customers and suppliers, in each case in
the ordinary course of business;

 

(e) Holdings and the
Subsidiaries may make loans and advances to employees, officers and directors
of Holdings or any Subsidiary (i) in the ordinary course of business, (ii) to
facilitate their purchase of stock or options of Holdings or to pay tax
liabilities in connection with the exercise or sale of stock or options of
Holdings or (iii) in connection with home relocation, so long as the aggregate
principal amount of all such loans and advances at any time outstanding
(determined without regard to adjustments for increases or decreases in value
or write-ups, write-downs or write-offs of such loans and advances) shall not
exceed $3,000,000;

 

(f) the Borrower may enter into
Hedging Agreements that (i) are required by Section 5.13 or (ii) are not
speculative in nature;

 

(g) the Borrower or any
Subsidiary may acquire (whether by purchase, merger or otherwise) all or
substantially all the assets of a person or line of business, unit or division
of such person, or not less than 100% of the Equity Interests (other than
directors’ or foreign national qualifying shares) of a person (referred to
herein as the “Acquired
Entity”); provided
that (i) such acquisition was not preceded by an unsolicited tender offer for
such Equity Interests by, or proxy contest initiated by, Holdings or any
Subsidiary; (ii) the Acquired Entity shall be in a line of business permitted
under Section 6.08 with respect to the Borrower and the Subsidiaries as
conducted during the current and most recent calendar year; and (iii) at the
time of such transaction (A) both before and after giving effect thereto, no
Default or Event of Default shall have occurred and be continuing, (B) the
Borrower would be in compliance with the covenants set forth in Sections 6.10
and 6.11 as of the most recently completed period of four consecutive fiscal
quarters ending prior to such transaction for which the financial statements
and certificates required by Section 5.04(a) or 5.04(b), have been delivered or
for which comparable financial statements have been filed with the Securities
and Exchange Commission, after giving pro forma effect to such transaction and
to any other event occurring during or after such period as to which pro forma
recalculation is appropriate (including any other transaction described in this
Section 6.04(g) occurring during or after such period) as if such transaction
had occurred as of the first day of such period (assuming, for purposes 

 

77

 

of pro forma compliance with Section 6.11,
that the maximum Leverage Ratio permitted at the time by such Section was in
fact 0.25 to 1.00 less than the ratio actually provided for in such Section at
such time), (C) after giving effect to such acquisition, the Borrower and the
Subsidiaries must have at least $10,000,000 in unrestricted cash or Permitted
Investments and/or unused and available Revolving Credit Commitments and (D) the
Borrower shall have delivered a certificate of a Financial Officer, certifying
as to the foregoing and containing reasonably detailed calculations in support
thereof, in form and substance reasonably satisfactory to the Administrative
Agent (any acquisition of an Acquired Entity meeting all the criteria of this Section
6.04(g) being referred to herein as a “Permitted Acquisition”);

 

(h) investments in licensing
and rights made with New Drug Licensing Costs in accordance with Section 6.13;

 

(i) investments constituting
Capital Expenditures permitted to be made pursuant to Section 6.12;

 

(j) investments constituting
Capitalized Drug Licensing Costs; provided that,
(i) at the time of such investment (A) both before and after giving effect
thereto, no Default or Event of Default shall have occurred and be continuing, (B)
the Borrower would be in compliance with the covenants set forth in Sections 6.10
and 6.11 as of the most recently completed period of four consecutive fiscal
quarters ending prior to such transaction for which the financial statements
and certificates required by Section 5.04(a) or 5.04(b), have been delivered or
for which comparable financial statements have been filed with the Securities
and Exchange Commission, after giving pro forma effect to such investment and
to any other event occurring during or after such period as to which pro forma
recalculation is appropriate (including any transaction described in Section 6.04(g)
occurring during or after such period) as if such transaction had occurred as
of the first day of such period (assuming, for purposes of pro forma compliance
with Section 6.11, that the maximum Leverage Ratio permitted at the time by
such Section was in fact 0.25 to 1.00 less than the ratio actually provided for
in such Section at such time), and (C) after giving effect to such investment,
the Borrower and the Subsidiaries must have at least $10,000,000 in
unrestricted cash or Permitted Investments and/or unused and available
Revolving Credit Commitments;

 

(k) investments by the Borrower
and the Subsidiaries consisting of extensions of credit in the nature of
accounts receivable or notes receivable arising from the grant of trade credit
in the ordinary course of business, and Investments received in satisfaction or
partial satisfaction thereof from financially troubled account debtors to the
extent reasonably necessary in order to prevent or limit loss and other
extensions of credit arising in the ordinary course of business and consistent
with past practices (including endorsements of negotiable instruments);

 

78

 

(l) Guarantees by the Borrower
and the Subsidiaries permitted by Section 6.01; provided that any Guarantee by a Loan Party of the
obligations of a person that is not a Loan Party shall be subject to, and
included as an investment in the basket provided for in, paragraph (a) above;

 

(m) investments by Holdings,
the Borrower and the Subsidiaries in the form of promissory notes or equity or
debt securities acquired in connection with dispositions permitted pursuant to Section
6.05;

 

(n) investments in joint
ventures or Subsidiaries that are not wholly owned Subsidiaries provided that
the aggregate amount of all such investments (without any adjustments for
increases or decreases in value, or write-ups, write-downs or write-offs with
respect to such investment, loan or advance) minus the amount of cash and cash
equivalents returned or repaid with respect to such investments shall not
exceed $15,000,000 at any time outstanding; and

 

(o) in addition to investments
permitted by paragraphs (a) through (n) above, additional investments, loans
and advances by the Borrower and the Subsidiaries so long as the aggregate
amount invested, loaned or advanced pursuant to this paragraph (o) (without any
adjustments for increases or decreases in value, or write-ups, write-downs or
write-offs with respect to such investment, loan or advance) minus the amount
of cash and cash equivalents returned or repaid with respect to such
investments, loans and advances does not exceed $10,000,000 in the aggregate.

 

SECTION 6.05.  Mergers, Consolidations, Sales of Assets and Acquisitions.  (a)  Merge into or consolidate with any other
person, or permit any other person to merge into or consolidate with it, or
sell, transfer, lease or otherwise dispose of (in one transaction or in a
series of transactions) all or substantially all the assets (whether now owned
or hereafter acquired) of the Borrower or less than all the Equity Interests of
any Subsidiary, or purchase, lease or otherwise acquire (in one transaction or
a series of transactions) all or substantially all of the assets or a line of
business of any other person, except that (i) for the avoidance of doubt, the
Borrower and any Subsidiary may purchase inventory, equipment and other assets
in the ordinary course of business, (ii) if at the time thereof and immediately
after giving effect thereto no Event of Default or Default shall have occurred
and be continuing (x) any wholly owned Subsidiary may liquidate or dissolve or
merge or consolidate into the Borrower in a transaction in which the Borrower
is the surviving corporation, (y) any wholly owned Subsidiary may merge into or
consolidate with any other wholly owned Subsidiary in a transaction in which
the surviving entity is a wholly owned Subsidiary and no person other than
Holdings, the Borrower or a wholly owned Subsidiary receives any consideration
(provided that if any party to any such transaction is a Loan Party, the
surviving entity of such transaction shall be a Loan Party) and (z) any
Subsidiary may sell, transfer, lease or otherwise dispose of all or
substantially all of its assets to the Borrower or a Subsidiary Guarantor, (iii)
the Borrower and the Subsidiaries may make Permitted Acquisitions, (iv) the
Borrower and the Subsidiaries may incur New Drug Licensing Costs and
Capitalized Drug Licensing 

 

79

 

Costs, and (v) for the
avoidance of doubt, the Borrower and the Subsidiaries may sell or otherwise
dispose of assets in transactions that do not constitute an Asset Sale.

 

(b)  Engage in any Asset Sale unless (i) such Asset
Sale is for consideration at least 75% of which is cash or Permitted
Investments, (ii) such consideration is at least equal to the fair market value
(determined in good faith by the board of directors (or a committee thereof) or
the chief financial officer of the Borrower) of the assets being sold,
transferred, leased or disposed of and (iii) the fair market value (determined
in good faith by the board of directors (or a committee thereof) or the chief
financial officer of the Borrower) of all assets sold, transferred, leased or
disposed of pursuant to this paragraph (b) shall not exceed $50,000,000 in the
aggregate.

 

SECTION 6.06.  Restricted Payments; Restrictive Agreements.  (a)  Declare or make, or agree to declare or make,
directly or indirectly, any Restricted Payment (including pursuant to any
Synthetic Purchase Agreement), or incur any obligation (contingent or
otherwise) to do so; provided, however, that (i) any Subsidiary of the
Borrower may declare and pay dividends or make other distributions to its
equity holders (so long as, to the extent such Subsidiary is not a wholly owned
Subsidiary, such dividends or distributions are made on a pro rata basis), (ii)
so long as no Event of Default or Default shall have occurred and be continuing
or would result therefrom, the Borrower or any Subsidiary may, or the Borrower
or any Subsidiary may make distributions to Holdings so that Holdings may,
repurchase its Equity Interests owned by current or former directors, officers,
employees or consultants of Holdings, the Borrower or the Subsidiaries or any
estate, family member of, or trust or other entity for the benefit of, any of
the foregoing persons upon termination of employment, in connection with the
exercise of stock options, stock appreciation rights or similar equity
incentives or equity based incentives pursuant to management incentive plans,
in connection with the exercise of rights by Holdings or any Subsidiary under
any agreement with any such current or former directors, officers, employees or
consultants or in connection with the death or disability of such current or
former directors, officers, employees or consultants in an aggregate amount not
to exceed $3,000,000 in any fiscal year (plus the amount not utilized in the
immediately preceding year) (or paid for with promissory notes permitted
pursuant to Section 6.01(j)), (iii) Holdings, the Borrower and each Subsidiary
may declare and pay dividends payable solely in shares of common stock or other
Qualified Capital Stock of Holdings, the Borrower or such Subsidiary, (iv) Holdings
may purchase, repurchase, defease, acquire or retire for value the capital
stock of Holdings or options, warrants or other rights to acquire such capital
stock solely in exchange for, or out of the proceeds of the sale of (so long as
such purchase, repurchase, redemption, defeasance, acquisition or retirement is
consummated within sixty (60) days of such sale) Qualified Capital Stock of
Holdings or options, warrants or other rights to acquire such Qualified Capital
Stock, (v) repurchases of capital stock of Holdings deemed to occur upon the
exercise of options or warrants solely to the extent that shares of such
capital stock represent a portion of the exercise price of such options or
warrants, (vi) the making of cash payments in lieu of the issuance of
fractional shares in connection with the exercise of warrants, options or other
securities convertible into or exchangeable for equity interests of Holdings, (vii)
the Borrower or any Subsidiary may make Restricted 

 

80

 

Payments to Holdings (w) in an
amount to be substantially concurrently invested in any Subsidiary consistent
with Section 6.04, (x) to the extent necessary to pay general corporate and
overhead expenses incurred by Holdings consistent with Section 6.08, (y) in an
amount necessary to pay the Tax liabilities of Holdings directly attributable
to (or arising as a result of) the operations of the Borrower and the
Subsidiaries and (z) in an amount necessary to make scheduled payments of
interest under any Shareholder Subordinated Notes or any Permitted Subordinated
Debt issued by Holdings; provided,
however, that (A) the amount of
such dividends made pursuant to subclause (y) above shall not exceed the amount
that the Borrower and the Subsidiaries would be required to pay in respect of
Federal, State and local Taxes were the Borrower and the Subsidiaries to pay
such Taxes as stand-alone taxpayers, (B) the amount of such dividends made
pursuant to subclause (z) above with respect to any Shareholder Subordinated
Notes shall not exceed, in any fiscal year, the Borrower’s Portion of Excess
Cash Flow from the preceding fiscal year (or, if such payment is being made in
2012, from the two preceding fiscal years) and (C) all Restricted Payments made
to Holdings pursuant to this clause (vii) are used by Holdings for the purposes
specified herein within 20 days of the receipt thereof, (viii) the Dividend,
and (ix) so long as (A) no Default or Event of Default shall have occurred and
be continuing or result therefrom and (B) after giving pro forma effect thereto
the Leverage Ratio is less than 2.50 to 1.00, then the Borrower or any
Subsidiary may make Restricted Payments to Holdings (or, in the case of
Permitted Subordinated Debt, may prepay, purchase, redeem or otherwise acquire)
and Holdings may use such amounts (x) to pay or prepay Shareholder Subordinated
Notes or Permitted Subordinated Debt or (y) after the occurrence of a Qualified
Public Offering, to repurchase its Equity Interests or make other Restricted
Payments up to an amount, in any fiscal year, equal to the Borrower’s Portion
of Excess Cash Flow from the preceding fiscal year (or, if such payment is
being made in 2012, from the two preceding fiscal years).

 

(b)  Enter into, incur or permit to exist any
agreement or other arrangement that prohibits, restricts or imposes any
condition upon (i) the ability of Holdings, the Borrower or any Subsidiary to
create, incur or permit to exist any Lien upon any of its property or assets,
or (ii) the ability of any Subsidiary of the Borrower to pay dividends or other
distributions with respect to any of its Equity Interests or to make or repay
loans or advances to the Borrower or any other Subsidiary or to Guarantee Indebtedness
of the Borrower or any other Subsidiary; provided that (A)
the foregoing shall not apply to restrictions and conditions imposed by law or
by any Loan Document, (B) the foregoing shall not apply to customary
restrictions and conditions contained in agreements relating to the sale of a
Subsidiary pending such sale, provided such
restrictions and conditions apply only to the Subsidiary that is to be sold and
such sale is permitted hereunder, (C) the foregoing shall not apply to
restrictions and conditions imposed on any Foreign Subsidiary by the terms of
any Indebtedness of such Foreign Subsidiary permitted to be incurred hereunder,
(D) clause (i) of the foregoing shall not apply to restrictions or conditions
imposed by any agreement relating to secured Indebtedness permitted by this
Agreement if such restrictions or conditions apply only to the property or
assets securing such Indebtedness, (E) clause (i) of the foregoing shall not
apply to customary provisions in leases and other contracts restricting the
assignment thereof, (F) clause (i) shall not apply to customary restrictions
and conditions 

 

81

 

contained in any agreement relating to the
sale of any property permitted under this Agreement pending the consummation of
such sale, and (G) the foregoing shall not apply to any agreement in effect at
the time a person becomes a Subsidiary of the Borrower, so long as such
agreement was not entered into in connection with or in contemplation of such
person becoming a Subsidiary of the Borrower, which encumbrance or restriction
is not applicable to the properties or assets of any Loan Party, other than the
Subsidiary, or the property or assets of the Subsidiary, so acquired.

 

SECTION 6.07.  Transactions with Affiliates.  Except for transactions by or among Loan
Parties, sell or transfer any property or assets to, or purchase or acquire any
property or assets from, or otherwise engage in any other transactions with,
any of its Affiliates, except that (a) Holdings, the Borrower or any Subsidiary
may engage in any of the foregoing transactions at prices and on terms and
conditions taken as a whole not less favorable to Holdings, the Borrower or
such Subsidiary than could be obtained on an arm’s-length basis from unrelated
third parties, (b) Holdings and the Subsidiaries may perform their respective
obligations under documents existing prior to the Closing Date and specified on
Schedule 6.07, (c) Holdings, the Borrower or any Subsidiary may declare or make
Restricted Payments permitted by Section 6.06(a), (d) Loan Parties may make
Investments in Foreign Subsidiaries permitted by Section 6.04, (e) Holdings,
the Borrower and the Subsidiaries may adopt, enter into, maintain and perform
their obligations under employment, compensation or indemnification plans and
arrangements for current or former directors, officers, employees and
consultants of Holdings, the Borrower and any Subsidiary entered into in the
ordinary course of business, (f) Holdings, the Borrower and the Subsidiaries
may make loans or advances to directors, officers, employees and consultants of
Holdings, the Borrower and any Subsidiary otherwise permitted by Section 6.04(e),
(g) Holdings may grant stock options or similar rights to directors, officers,
employees and consultants of Holdings, the Borrower and any Subsidiary and (h) Holdings
may issue and sell Equity Interests or Shareholder Subordinated Notes to
Affiliates.

 

SECTION 6.08.  Business of Holdings, Borrower and Subsidiaries.  (a)  With respect to Holdings, engage in any
business activities or have any material assets or material liabilities other
than its ownership of the Equity Interests of (and/or intercompany advances to
or from) the Borrower and the Subsidiaries and activities, assets and liabilities
incidental thereto, including its liabilities pursuant to the Guarantee and
Collateral Agreement, agreements, plans or other arrangements relating to its
current or former directors, officers, employees and consultants, the issuance
of Shareholder Subordinated Notes and stockholder and other agreements relating
to the issuance, sale, purchase, repurchase or registration of securities of
Holdings.

 

(b)  With respect to the Borrower and its
Subsidiaries, engage at any time in any business or business activity other
than the business currently conducted by it and business activities reasonably
similar, ancillary or related thereto or reasonable extensions of any of the
foregoing.

 

82

 

SECTION 6.09.  Other Indebtedness and Agreements.  (a)  Permit any waiver, supplement, modification,
amendment, termination or release of any indenture, instrument or agreement
pursuant to which any subordinated Indebtedness of Holdings, the Borrower or
any of the Subsidiaries is outstanding if the effect of such waiver,
supplement, modification, amendment, termination or release would materially
increase the obligations of the obligor thereunder or confer additional
material rights on the holder of any such subordinated Indebtedness in a manner
adverse to Holdings, the Borrower, any of the Subsidiaries or the Lenders.

 

(b)  Other than (i) regular scheduled payments of
principal and interest as and when due, (ii) payments of Shareholder
Subordinated Notes or Permitted Subordinated Debt permitted by Section 6.06(a)(vii)(z)
or (ix), or (iii) other payments with respect to Permitted Subordinated Debt
(other than payments with respect to the principal thereof) (in each case, to
the extent not prohibited by applicable subordination provisions), make any
distribution, whether in cash, property, securities or a combination thereof,
in respect of, or pay, or offer or commit to pay, or directly or indirectly
(including pursuant to any Synthetic Purchase Agreement) redeem, repurchase,
retire or otherwise acquire for consideration, or set apart any sum for the
aforesaid purposes, any subordinated Indebtedness.

 

SECTION 6.10.  Interest Coverage Ratio.  Permit the Interest Coverage Ratio as of the
last day of any fiscal quarter, beginning with the fiscal quarter ending June 30,
2010, to be less than 2.00 to 1.00.

 

SECTION 6.11.  Maximum Leverage Ratio. 
Permit the Leverage Ratio as at the last day of any fiscal quarter
ending during any period set forth below to be greater than the applicable ratio
set forth below:

 

	
  Period

  	
   

  	
  Ratio

  
	
  Closing Date through September 30, 2010

  	
   

  	
  3.45 to 1.00

  
	
  October 1, 2010 through December 31, 2010

  	
   

  	
  3.40 to 1.00

  
	
  January 1, 2011 through March 31, 2011

  	
   

  	
  3.20 to 1.00

  
	
  April 1, 2011 through June 30, 2011

  	
   

  	
  2.95 to 1.00

  
	
  July 1, 2011 through September 30, 2011

  	
   

  	
  2.70 to 1.00

  
	
  October 1, 2011 through December 31, 2011

  	
   

  	
  2.65 to 1.00

  
	
  January 1, 2012 through December 31, 2012

  	
   

  	
  2.10 to 1.00

  
	
  Thereafter

  	
   

  	
  2.00 to 1.00

  

 

SECTION 6.12.  Capital Expenditures.  Permit the aggregate amount of Capital
Expenditures made by Holdings and the Subsidiaries in any fiscal year to exceed
the aggregate amount for such year set forth below.

 

83

 

	
  Year

  	
   

  	
  Amount

  
	
  2010

  	
   

  	
  $

  	
  30,000,000

  
	
  2011

  	
   

  	
  $

  	
  32,000,000

  
	
  2012

  	
   

  	
  $

  	
  25,000,000

  
	
  2013

  	
   

  	
  $

  	
  25,000,000

  
	
  2014

  	
   

  	
  $

  	
  25,000,000

  
	
  2015

  	
   

  	
  $

  	
  25,000,000

  
	
  2016

  	
   

  	
  $

  	
  25,000,000

  

 

The amount of permitted Capital Expenditures in respect of any fiscal
year, commencing with the fiscal year ending on December 31, 2011, shall be
increased (but not decreased) by 100% of the amount of unused permitted Capital
Expenditures for the immediately preceding fiscal year less an amount equal to
the unused Capital Expenditures carried forward to such preceding fiscal year.

 

SECTION 6.13.  New Drug Licensing Costs.  Permit the aggregate amount of New Drug
Licensing Costs incurred by Holdings and the Subsidiaries in any fiscal year to
exceed the aggregate amount for such year set forth below.

 

	
  Year

  	
   

  	
  Amount

  
	
  2010

  	
   

  	
  $

  	
  27,500,000

  
	
  2011

  	
   

  	
  $

  	
  30,000,000

  
	
  2012

  	
   

  	
  $

  	
  30,000,000

  
	
  2013

  	
   

  	
  $

  	
  37,500,000

  
	
  2014

  	
   

  	
  $

  	
  37,500,000

  
	
  2015

  	
   

  	
  $

  	
  37,500,000

  
	
  2016

  	
   

  	
  $

  	
  37,500,000

  

 

SECTION 6.14.  Certain Equity Interests.  Issue any Disqualified Capital Stock.

 

SECTION 6.15.  Fiscal Year. 
With respect to Holdings, change its fiscal year end to a date other
than December 31.

 

ARTICLE VII

 

Events of Default

 

In case of the
happening of any of the following events (“Events of Default”):

 

(a) any representation or
warranty made or deemed made in or in connection with any Loan Document or the
borrowings or issuances of Letters of Credit hereunder, or any representation,
warranty, statement or information contained in any report, certificate,
financial statement or other instrument furnished in connection with or
pursuant to any Loan Document, shall prove to have been false or misleading in
any material respect when so made, deemed made or furnished;

 

84

 

(b) default shall be made in
the payment of any principal of any Loan when and as the same shall become due
and payable, whether at the due date thereof or at a date fixed for prepayment
thereof or by acceleration thereof or otherwise;

 

(c) default shall be made in
the payment of any interest on any Loan or any Fee or the reimbursement with
respect to any L/C Disbursement or any other amount (other than an amount
referred to in (b) above) due under any Loan Document, when and as the same
shall become due and payable, and such default shall continue unremedied for a
period of three Business Days;

 

(d) default shall be made in
the due observance or performance by Holdings, the Borrower or any Subsidiary
of any covenant, condition or agreement contained in Section 5.01(a), 5.05 or
5.08 or in Article VI;

 

(e) default shall be made in
the due observance or performance by Holdings, the Borrower or any Subsidiary
of any covenant, condition or agreement contained in any Loan Document (other
than those specified in paragraph (b), (c) or (d) above) and such default shall
continue unremedied for a period of 30 days after notice thereof from the
Administrative Agent or the Required Lenders to Holdings or the Borrower;

 

(f) (i)  Holdings, the Borrower or any Subsidiary
shall fail to pay any principal or interest, regardless of amount, due in
respect of any Material Indebtedness, when and as the same shall become due and
payable (after any applicable grace periods provided therein), or (ii) any
other event or condition occurs that results in any Material Indebtedness
becoming due prior to its scheduled maturity or that enables or permits (with
or without the giving of notice, the lapse of time or both) the holder or
holders of any Material Indebtedness or any trustee or agent on its or their
behalf to cause any Material Indebtedness to become due, or to require the
prepayment, repurchase, redemption or defeasance thereof, prior to its
scheduled maturity; provided that
this clause (ii) shall not apply to secured Indebtedness that becomes due as a
result of the voluntary sale or transfer of the property or assets securing
such Indebtedness;

 

(g) an involuntary proceeding
shall be commenced or an involuntary petition shall be filed in a court of
competent jurisdiction seeking (i) relief in respect of Holdings, the Borrower
or any Subsidiary, or of a substantial part of the property or assets of
Holdings, the Borrower or a Subsidiary, under Title 11 of the United States
Code, as now constituted or hereafter amended, or any other Federal, state or
foreign bankruptcy, insolvency, receivership or similar law, (ii) the
appointment of a receiver, trustee, custodian, sequestrator, conservator or
similar official for Holdings, the Borrower or any Subsidiary or for a
substantial part of the property or assets of the Borrower or a Subsidiary or (iii)
the winding-up or liquidation of Holdings, the Borrower or any Subsidiary; and
such 

 

85

 

proceeding or petition shall continue
undismissed for 60 days or an order or decree approving or ordering any of the
foregoing shall be entered;

 

(h) Holdings, the Borrower or
any Subsidiary shall (i) voluntarily commence any proceeding or file any
petition seeking relief under Title 11 of the United States Code, as now
constituted or hereafter amended, or any other Federal, state or foreign
bankruptcy, insolvency, receivership or similar law, (ii) consent to the
institution of, or fail to contest in a timely and appropriate manner, any
proceeding or the filing of any petition described in (g) above, (iii) apply
for or consent to the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official for Holdings, the Borrower or any
Subsidiary or for a substantial part of the property or assets of Holdings, the
Borrower or any Subsidiary, (iv) file an answer admitting the material allegations
of a petition filed against it in any such proceeding, (v) make a general
assignment for the benefit of creditors, (vi) become unable, admit in writing
its inability or fail generally to pay its debts as they become due or (vii) take
any corporate action for the purpose of effecting any of the foregoing;

 

(i) one or more judgments shall
be rendered against Holdings, the Borrower, any Subsidiary or any combination
thereof and the same shall remain undischarged for a period of 30 consecutive
days during which execution shall not be effectively stayed, or any action
shall be legally taken by a judgment creditor to levy upon assets or properties
of Holdings, the Borrower or any Subsidiary to enforce any such judgment and
such judgment either (i) is for the payment of money in an aggregate amount in
excess of $5,000,000 or (ii) is for injunctive relief and could reasonably be
expected to result in a Material Adverse Effect;

 

(j) an ERISA Event shall have
occurred that, in the opinion of the Required Lenders, when taken together with
all other such ERISA Events, could reasonably be expected to result in
liability of Holdings, the Borrower and its Subsidiaries in an aggregate amount
exceeding $5,000,000;

 

(k) any Guarantee under the
Guarantee and Collateral Agreement for any reason shall cease to be in full
force and effect (other than in accordance with its terms), or any Subsidiary
Guarantor shall deny in writing that it has any further liability under the
Guarantee and Collateral Agreement (other than as a result of the discharge of
such Subsidiary Guarantor in accordance with the terms of the Loan Documents);

 

(l) any security interest
purported to be created by any Security Document shall cease to be, or shall be
asserted by the Borrower or any other Loan Party not to be, a valid, perfected,
first priority (except as otherwise expressly provided in this Agreement or
such Security Document) security interest in the securities, assets or
properties covered thereby, except to the extent that any such loss of perfection
or priority relates to Collateral with an aggregate fair market value of less
than $5,000,000 or results from the failure of the Collateral Agent to maintain

 

86

 

possession of certificates representing
securities pledged under the Guarantee and Collateral Agreement; or

 

(m) the Indebtedness under any
subordinated Indebtedness of Holdings or its Subsidiaries constituting Material
Indebtedness shall cease (or any Loan Party or an Affiliate of any Loan Party
shall so assert), for any reason, to be validly subordinated to the Obligations
as provided in the agreements evidencing such subordinated Indebtedness; or

 

(n) there shall have occurred a
Change in Control;

 

then, and in
every such event (other than an event with respect to the Borrower described in
paragraph (g) or (h) above), and at any time thereafter during the continuance
of such event, the Administrative Agent may, and at the request of the Required
Lenders shall, by notice to the Borrower, take either or both of the following
actions, at the same or different times: 
(i) terminate forthwith the Commitments and (ii) declare the Loans then
outstanding to be forthwith due and payable in whole or in part, whereupon the
principal of the Loans so declared to be due and payable, together with accrued
interest thereon and any unpaid accrued Fees and all other liabilities of the
Borrower accrued hereunder and under any other Loan Document, shall become
forthwith due and payable, without presentment, demand, protest or any other
notice of any kind, all of which are hereby expressly waived by Holdings and
the Borrower, anything contained herein or in any other Loan Document to the
contrary notwithstanding; and in any event with respect to Holdings or the Borrower
described in paragraph (g) or (h) above, the Commitments shall automatically
terminate and the principal of the Loans then outstanding, together with
accrued interest thereon and any unpaid accrued Fees and all other liabilities
of Holdings and the Borrower accrued hereunder and under any other Loan
Document, shall automatically become due and payable, without presentment,
demand, protest or any other notice of any kind, all of which are hereby
expressly waived by Holdings and the Borrower, anything contained herein or in
any other Loan Document to the contrary notwithstanding.

 

ARTICLE VIII

 

The Administrative Agent and the Collateral
Agent

 

Each of the
Lenders and the Issuing Bank hereby irrevocably appoints the Administrative
Agent and the Collateral Agent (for purposes of this Article VIII, the
Administrative Agent and the Collateral Agent are referred to collectively as
the “Agents”) its agent and authorizes
the Agents to take such actions on its behalf and to exercise such powers as
are delegated to such Agent by the terms of the Loan Documents, together with
such actions and powers as are reasonably incidental thereto.  Without limiting the generality of the
foregoing, the Agents are hereby expressly authorized to execute any and all
documents (including releases) with respect to the Collateral and the rights of
the Secured Parties with respect thereto, as contemplated by and in accordance
with the provisions of this Agreement and the Security Documents.

 

87

 

The
institution serving as the Administrative Agent and/or the Collateral Agent
hereunder shall have the same rights and powers in its capacity as a Lender as
any other Lender and may exercise the same as though it were not an Agent, and
such bank and its Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with Holdings, the Borrower or any
Subsidiary or other Affiliate thereof as if it were not an Agent hereunder.

 

Neither Agent
shall have any duties or obligations except those expressly set forth in the
Loan Documents.  Without limiting the
generality of the foregoing, (a) neither Agent shall be subject to any
fiduciary or other implied duties, regardless of whether a Default has occurred
and is continuing, (b) neither Agent shall have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby that such Agent is instructed
in writing to exercise by the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as
provided in Section 9.08), and (c) except as expressly set forth in the Loan
Documents, neither Agent shall have any duty to disclose, nor shall it be liable
for the failure to disclose, any information relating to Holdings, the Borrower
or any of the Subsidiaries that is communicated to or obtained by the bank
serving as Administrative Agent and/or Collateral Agent or any of its
Affiliates in any capacity. Neither Agent shall be liable for any action taken
or not taken by it with the consent or at the request of the Required Lenders
(or such other number or percentage of the Lenders as shall be necessary under
the circumstances as provided in Section 9.08) or in the absence of its own
gross negligence or willful misconduct. Neither Agent shall be deemed to have
knowledge of any Default unless and until written notice thereof is given to
such Agent by Holdings, the Borrower or a Lender, and neither Agent shall be
responsible for or have any duty to ascertain or inquire into (i) any
statement, warranty or representation made in or in connection with any Loan
Document, (ii) the contents of any certificate, report or other document
delivered thereunder or in connection therewith, (iii) the performance or
observance of any of the covenants, agreements or other terms or conditions set
forth in any Loan Document, (iv) the validity, enforceability, effectiveness or
genuineness of any Loan Document or any other agreement, instrument or
document, or (v) the satisfaction of any condition set forth in Article IV or
elsewhere in any Loan Document, other than to confirm receipt of items
expressly required to be delivered to such Agent.

 

Each 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 believed by it to be genuine and to have been signed
or sent by the proper person. Each Agent may also rely upon any statement made
to it orally or by telephone and believed by it to have been made by the proper
person, and shall not incur any liability for relying thereon. Each Agent may
consult with legal counsel (who may be counsel for Holdings or the Borrower),
independent accountants and other experts selected by it, and shall not be
liable for any action taken or not taken by it in accordance with the advice of
any such counsel, accountants or experts.

 

Each Agent may
perform any and all its duties and exercise its rights and powers by or through
any one or more sub-agents appointed by it. Each Agent and any such sub-

 

88

 

agent may perform any and all its duties and exercise its rights and
powers by or through their respective Related Parties. The exculpatory
provisions of the preceding paragraphs shall apply to any such sub-agent and to
the Related Parties of each Agent and any such sub-agent, and shall apply to
their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Agent.

 

Subject to the
appointment and acceptance of a successor Agent as provided below, either Agent
may resign at any time by notifying the Lenders, the Issuing Bank and the
Borrower. Upon any such resignation, the Required Lenders shall have the right,
in consultation with the Borrower, to appoint a successor. If no successor
shall have been so appointed by the Required Lenders and shall have accepted
such appointment within 30 days after the retiring Agent gives notice of its
resignation, then the retiring Agent may, on behalf of the Lenders and the
Issuing Bank, appoint a successor Agent which shall be a bank with an office in
New York, New York, or an Affiliate of any such bank. If no successor Agent has
been appointed pursuant to the immediately preceding sentence by the 30th day
after the date such notice of resignation was given by such Agent, such Agent’s
resignation shall become effective and the Required Lenders shall thereafter
perform all the duties of such Agent hereunder and/or under any other Loan
Document until such time, if any, as the Required Lenders appoint a successor
Agent. Any such resignation by such Agent hereunder shall also constitute, to
the extent applicable, its resignation as an Issuing Bank, in which case such
resigning Agent (a) shall not be required to issue any further Letters of
Credit and (b) shall maintain all of its rights as Issuing Bank, as the case
may be, with respect to any Letters of Credit issued by it prior to the date of
such resignation.

 

Upon the
acceptance of its appointment as Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and
duties of the retiring Agent, and the retiring Agent shall be discharged from
its duties and obligations hereunder. The fees payable by the Borrower to a
successor Agent shall be the same as those payable to its predecessor unless
otherwise agreed between the Borrower and such successor. After an Agent’s
resignation hereunder, the provisions of this Article and Section 9.05 shall
continue in effect for the benefit of such retiring Agent, its sub-agents and
their respective Related Parties in respect of any actions taken or omitted to
be taken by any of them while acting as Agent.

 

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

 

None of the
Lenders or other persons identified on the facing page of this Agreement as a “bookrunner”,
“lead arranger”, or “syndication agent” shall have any 

 

89

 

right, power, obligation, liability, responsibility or duty under this
Agreement other than those applicable to all Lenders.  Without limiting the foregoing, none of the
Lenders or other persons so identified shall have or be deemed to have any
fiduciary relationship with any Lender. 
Each Lender acknowledges that it has not relied, and will not rely, on
any of the Lenders or other persons so identified in deciding to enter into
this Agreement or in taking or not taking action hereunder.

 

ARTICLE IX

 

Miscellaneous

 

SECTION 9.01.  Notices; Electronic Communications.  Notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by fax, as follows:

 

(a) if to the Borrower or
Holdings, to it at 6 Route 173, Clinton, NJ 08809, Attention of Chief Financial
Officer (Fax No. (908) 238-6699); and with a copy, in the case of any notice of
Default, to Fried Frank Harris Shriver & Jacobson LLP, One New York Plaza,
New York, NY 10004, Attention of Craig F. Miller (Fax No. (212) 859-4000);

 

(b) if to the Administrative
Agent, to Credit Suisse AG, Eleven Madison Avenue, New York, NY 10010,
Attention of Sean Portrait Loan Operations Agency Group (Fax No. (212)
322-2291), E-mail: agency.loanops@credit-suisse.com; and

 

(c) if to a Lender, to it at its
address (or fax number) set forth on Schedule 2.01 or in the Assignment and
Acceptance pursuant to which such Lender shall have become a party hereto.

 

All notices
and other communications given to any party hereto in accordance with the
provisions of this Agreement shall be deemed to have been given on the date of
receipt (if such day is a Business Day, otherwise on the first Business Day
after receipt) if delivered by hand or overnight courier service or sent by fax
or on the date five Business Days after dispatch by certified or registered
mail if mailed, in each case delivered, sent or mailed (properly addressed) to
such party as provided in this Section 9.01 or in accordance with the latest
unrevoked direction from such party given in accordance with this Section 9.01.  As agreed to among Holdings, the Borrower,
the Administrative Agent and the applicable Lenders from time to time, notices
and other communications may also be delivered by e-mail to the e-mail address
of a representative of the applicable person provided from time to time by such
person.

 

Holdings
and the Borrower hereby agree, unless directed otherwise by the Administrative
Agent or unless the electronic mail address referred to below has not been
provided by the Administrative Agent, that it will, or will cause the
Subsidiaries to, provide to the Administrative Agent all information, documents
and other materials that it is obligated to furnish to the Administrative Agent
pursuant to the Loan Documents or

 

90

 

to the Lenders under Article V,
including all notices, requests, financial statements, financial and other
reports, certificates and other information materials, but excluding any such
communication that (a) is or relates to a Borrowing Request, a notice pursuant
to Section 2.10 or a notice requesting the issuance, amendment, extension
or renewal of a Letter of Credit pursuant to Section 2.22, (b) relates
to the payment of any principal or other amount due under this Agreement prior
to the scheduled date therefor, (c) provides notice of any Default or
Event of Default under this Agreement or any other Loan Document or (d) is
required to be delivered to satisfy any condition precedent to the
effectiveness of this Agreement and/or any Borrowing or other extension of
credit hereunder (all such non-excluded communications being referred to herein
collectively as “Communications”),
by transmitting the Communications in an electronic/soft medium that is
properly identified in a format acceptable to the Administrative Agent to an
electronic mail address as directed by the Administrative Agent.

 

Holdings and the Borrower hereby acknowledge that (a) the Administrative Agent will
make available to the Lenders and the Issuing Bank materials and/or information
provided by or on behalf of it hereunder (collectively, the “Borrower  Materials”) by posting the Borrower
Materials on Intralinks or another 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 Holdings and its Subsidiaries or their securities) (each, a “Public Lender”).
Holdings and the Borrower hereby agree that (i) all Borrower Materials
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; (ii) by marking
Borrower Materials “PUBLIC,” Holdings and the Borrower shall be deemed to have
authorized the Administrative Agent and the Lenders to treat such Borrower
Materials as not containing any material non-public information with respect to
Holdings and its Subsidiaries or their securities for purposes of United States
federal and state securities laws (provided,
however, that to the extent such
Borrower Materials constitute Information, they shall be treated as set forth
in Section 9.16); (iii) all Borrower Materials marked “PUBLIC” are
permitted to be made available through a portion of the Platform designated as “Public
Investor;” and (iv) the Administrative Agent shall be entitled to treat
any Borrower Materials that are not marked “PUBLIC” as being suitable only for
posting on a portion of the Platform not marked as “Public Investor.”
Notwithstanding the foregoing, the following Borrower Materials shall be marked
“PUBLIC”, unless the Borrower notifies the Administrative Agent promptly that
any such document contains material non-public information: (A) the Loan
Documents and (B) notification of changes in the terms of the Credit
Facilities.

 

Each Public Lender agrees to
cause at least one individual at or on behalf of such Public Lender to at all
times have selected the “Private Side Information” or similar designation on
the content declaration screen of the Platform in order to enable such Public
Lender or its delegate, in accordance with such Public Lender’s compliance
procedures and applicable law, including United States Federal and state
securities laws, to make reference to, and receive, Communications that are not
made available through the “Public Side Information” portion of the Platform
and that may contain material non-

 

91

 

public information with
respect to Holdings and its Subsidiaries or their securities for purposes of
United States Federal or state securities laws.

 

THE PLATFORM IS
PROVIDED “AS IS” AND “AS AVAILABLE”. NEITHER THE ADMINISTRATIVE AGENT NOR ANY
OF ITS RELATED PARTIES WARRANTS THE ACCURACY OR COMPLETENESS OF THE
COMMUNICATIONS OR THE ADEQUACY OF THE PLATFORM AND EACH EXPRESSLY
DISCLAIMS LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS. NO WARRANTY
OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING 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 RELATED PARTIES IN CONNECTION WITH THE
COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT OR
ANY OF ITS RELATED PARTIES HAVE ANY LIABILITY TO ANY LOAN PARTY, ANY LENDER OR
ANY OTHER PERSON FOR DAMAGES OF ANY KIND, WHETHER OR NOT BASED ON STRICT
LIABILITY AND INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR
CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR
OTHERWISE) ARISING OUT OF ANY LOAN PARTY’S OR THE ADMINISTRATIVE AGENT’S
TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE
LIABILITY OF ANY SUCH PERSON IS FOUND IN A FINAL RULING BY A COURT OF COMPETENT
JURISDICTION TO HAVE RESULTED PRIMARILY FROM SUCH PERSON’S GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT.

 

The Administrative Agent
agrees that the receipt of the Communications by the Administrative Agent at
its e-mail address set forth above shall constitute effective delivery of the
Communications to the Administrative Agent for purposes of the Loan Documents.
Each Lender agrees that receipt of notice to it (as provided in the next
sentence) specifying that the Communications have been posted to the Platform
shall constitute effective delivery of the Communications to such Lender for
purposes of the Loan Documents. Each Lender agrees to notify the Administrative
Agent in writing (including by electronic communication) from time to time of
such Lender’s e-mail address to which the foregoing notice may be sent by
electronic transmission and that the foregoing notice may be sent to such
e-mail address.

 

Nothing herein shall
prejudice the right of the Loan Parties, the Administrative Agent or any Lender
to give any notice or other communication pursuant to any Loan Document in any
other manner specified in such Loan Document.

 

SECTION 9.02.  Survival of Agreement.  All covenants, agreements, representations
and warranties made by the Borrower or Holdings herein and in the certificates
or other instruments prepared or delivered in connection with or pursuant to
this Agreement or any other Loan Document shall be considered to have been
relied upon by the Lenders and the Issuing Bank and shall survive the making by
the Lenders of the Loans and the issuance of Letters of Credit by the Issuing
Bank, regardless of any 

 

92

 

investigation made by the
Lenders or the Issuing Bank or on their behalf, and shall continue in full
force and effect as long as the principal of or any accrued interest on any
Loan or any Fee or any other amount payable under this Agreement or any other
Loan Document (other than contingent indemnification obligations for which no
claim has been made) is outstanding and unpaid or any Letter of Credit is
outstanding and so long as the Commitments have not been terminated. The
provisions of Sections 2.14, 2.16, 2.20 and 9.05 shall remain operative and in
full force and effect regardless of the expiration of the term of this
Agreement, the consummation of the transactions contemplated hereby, the
repayment of any of the Loans and L/C Disbursements, the expiration of the
Commitments, the expiration of any Letter of Credit, the invalidity or unenforceability
of any term or provision of this Agreement or any other Loan Document, or any
investigation made by or on behalf of the Administrative Agent, the Collateral
Agent, any Lender or the Issuing Bank.

 

SECTION 9.03.  Binding Effect.  This Agreement shall become effective when it
shall have been executed by the Borrower, Holdings  and the Administrative Agent and when the
Administrative Agent shall have received counterparts hereof which, when taken
together, bear the signatures of each of the other parties hereto.

 

SECTION 9.04.  Successors and Assigns.  (a) 
Whenever in this Agreement any of the parties hereto is referred to, such
reference shall be deemed to include the permitted successors and assigns of
such party; and all covenants, promises and agreements by or on behalf of the
Borrower, Holdings, the Administrative Agent, the Collateral Agent, the Issuing
Bank or the Lenders that are contained in this Agreement shall bind and inure
to the benefit of their respective successors and assigns.

 

(b)  Each Lender may assign to one or
more Eligible Assignees all or a portion of its interests, rights and
obligations under this Agreement (including all or a portion of its Commitment
and the Loans at the time owing to it), with the prior written consent of the
Administrative Agent and (except as provided below) the Borrower (in each case,
not to be unreasonably withheld or delayed); provided,
however, that (i)  if the Borrower has not responded within
five Business Days to any request for an assignment, the Borrower shall be
deemed to have consented to such assignment, (ii) the consent of the
Borrower shall not be required to any assignment made to another Lender, an
Affiliate of a Lender or a Related Fund of a Lender or after the occurrence and
during the continuance of any Event of Default, (iii) in the case of an
assignment of a Revolving Credit Commitment, the Issuing Bank must also give
its prior written consent to such assignment (which consent shall not be
unreasonably withheld or delayed), (iv) unless otherwise agreed to by the
Administrative Agent, the amount of the Commitment or Loans of the assigning
Lender subject to each such assignment (determined as of the date the
Assignment and Acceptance with respect to such assignment is delivered to the
Administrative Agent on an aggregate basis in the event of concurrent
assignments to Related Funds) shall not be less than $1,000,000 (or, if less,
the entire remaining amount of such Lender’s Commitment or Loans of the
relevant Class), (v) the parties to each such assignment shall execute and
deliver to the Administrative Agent an Assignment and Acceptance via an
electronic settlement system 

 

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acceptable to the Administrative Agent (or, if previously agreed with
the Administrative Agent, manually), and shall pay to the Administrative Agent
a processing and recordation fee of $3,500 (which fee may be waived or reduced
in the sole discretion of the Administrative Agent), and (vi) the
assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire and to the Administrative Agent and the
Borrower, all applicable tax forms including any forms required by Section 2.20.  Upon acceptance and recording pursuant to paragraph (e) of
this Section 9.04, from and after the effective date specified in each
Assignment and Acceptance, (A) the assignee thereunder shall be a party
hereto and, to the extent of the interest assigned by such Assignment and
Acceptance, have the rights and obligations of a Lender under this Agreement
and (B) the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Acceptance, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of
Sections 2.14, 2.16, 2.20 and 9.05, as well as to any Fees accrued for its
account and not yet paid).

 

(c)  By executing and delivering an
Assignment and Acceptance, the assigning Lender thereunder and the assignee
thereunder shall be deemed to confirm to and agree with each other and the
other parties hereto as follows:  (i) such assigning Lender
warrants that it is the legal and beneficial owner of the interest being
assigned thereby free and clear of any adverse claim and that its Term Loan
Commitment and Revolving Credit Commitment, and the outstanding balances of its
Term Loans and Revolving Loans, in each case without giving effect to
assignments thereof which have not become effective, are as set forth in such
Assignment and Acceptance, (ii) except as set forth in (i) above, such
assigning Lender makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with this Agreement, or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement,
any other Loan Document or any other instrument or document furnished pursuant
hereto, or the financial condition of Holdings, the Borrower or any Subsidiary
or the performance or observance by Holdings, the Borrower or any Subsidiary of
any of its obligations under this Agreement, any other Loan Document or any
other instrument or document furnished pursuant hereto; (iii) such
assignee represents and warrants that it is an Eligible Assignee and is legally
authorized to enter into such Assignment and Acceptance; (iv) such
assignee confirms that it has received a copy of this Agreement, together with
copies of the most recent financial statements referred to in Section 3.05
or delivered pursuant to Section 5.04 and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into such Assignment and Acceptance; (v) such assignee
will independently and without reliance upon the Administrative Agent, the
Collateral Agent, such assigning Lender or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under this 

 

94

 

Agreement; (vi) such assignee appoints and authorizes the
Administrative Agent and the Collateral Agent to take such action as agent on
its behalf and to exercise such powers under this Agreement as are delegated to
the Administrative Agent and the Collateral Agent, respectively, by the terms
hereof, together with such powers as are reasonably incidental thereto; and (vii) such
assignee agrees that it will perform in accordance with their terms all the
obligations which by the terms of this Agreement are required to be performed
by it as a Lender.

 

(d)  The Administrative Agent, acting
for this purpose as an agent of the Borrower, shall maintain at one of its
offices in The City of New York a copy of each Assignment and Acceptance delivered
to it and a register for the recordation of the names and addresses of the
Lenders, and the Commitment of, and principal amount of the Loans owing to,
each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive absent manifest error and the Borrower, the Administrative Agent,
the Issuing Bank, the Collateral Agent and the Lenders may treat each person
whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary.  The Register shall be
available for inspection by the Borrower, the Issuing Bank, the Collateral
Agent and any Lender, at any reasonable time and from time to time upon reasonable
prior notice.

 

(e)  Upon its receipt of, and consent
to, a duly completed Assignment and Acceptance executed by an assigning Lender
and an assignee, an Administrative Questionnaire completed in respect of the
assignee (unless the assignee shall already be a Lender hereunder), the
processing and recordation fee referred to in paragraph (b) above, if
applicable, and the written consent of the Administrative Agent and, if
required, the Borrower and the Issuing Bank to such assignment and any
applicable tax forms including any forms required by Section 2.20, the
Administrative Agent shall promptly (i) accept such Assignment and
Acceptance and (ii) record the information contained therein in the
Register. No assignment shall be effective unless it has been recorded in the
Register as provided in this paragraph (e).

 

(f)  Each Lender may without the consent
of the Borrower, the Issuing Bank or the Administrative Agent sell
participations to one or more banks or other persons in all or a portion of its
rights and obligations under this Agreement (including all or a portion of its
Commitment and the Loans owing to it); provided, however, that (i) such Lender’s obligations under this
Agreement and the other Loan Documents shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, (iii) the participating banks or other
persons shall be entitled to the benefit of the cost protection provisions
contained in Sections 2.14, 2.16 and 2.20 to the same extent as if they
were Lenders (but, with respect to any particular participant, to no greater
extent than the Lender that sold the participation to such participant) and (iv) the
Borrower, the Administrative Agent, the Issuing Bank and the Lenders shall
continue to deal solely and directly with such Lender in connection with such 

 

95

 

Lender’s rights and obligations under this Agreement and the other Loan
Documents, and such Lender shall retain the sole right to enforce the
obligations of the Borrower relating to the Loans or L/C Disbursements and to
approve any amendment, modification or waiver of any provision of this
Agreement and the other Loan Documents (other than amendments, modifications or
waivers decreasing any fees payable to such participating bank or person
hereunder or the amount of principal of or the rate at which interest is
payable on the Loans in which such participating bank or person has an
interest, extending any scheduled principal payment date or date fixed for the
payment of interest on the Loans in which such participating bank or person has
an interest, increasing or extending the Commitments in which such
participating bank or person has an interest or releasing any Subsidiary
Guarantor (other than in connection with Asset Sales permitted under Section 6.05
or as otherwise specified in this Agreement or any Security Document) or all or
substantially all of the Collateral). 
Each Lender that sells a participation shall, acting solely for this
purpose as an agent of the Borrower, maintain a register on which it enters the
name and address of each participant and the principal amounts (and stated
interest) of each participant’s interest in the Loans or other obligations
under this Agreement (the “Participant
Register”).  The entries
in the Participant Register shall be conclusive absent manifest error, and such
Lender shall treat each person whose name is recorded in the Participant
Register as the owner of such participation for all purposes of this Agreement
notwithstanding any notice to the contrary.

 

(g)  Any Lender or participant may, in
connection with any assignment or participation or proposed assignment or
participation pursuant to this Section 9.04, disclose to the assignee or
participant or proposed assignee or participant any information relating to the
Borrower furnished to such Lender by or on behalf of the Borrower; provided that, prior to any such disclosure of information
designated by the Borrower as confidential, each such assignee or participant
or proposed assignee or participant shall execute an agreement whereby such
assignee or participant shall agree to preserve the confidentiality of such
confidential information on terms no less restrictive than those applicable to
the Lenders pursuant to Section 9.16.

 

(h)  Any Lender may at any time assign
all or any portion of its rights under this Agreement to secure extensions of
credit to such Lender or in support of obligations owed by such Lender; provided that no such assignment shall release a Lender from
any of its obligations hereunder or substitute any such assignee for such
Lender as a party hereto.

 

(i)  Notwithstanding anything to the
contrary contained herein, any Lender (a “Granting Lender”) may grant to a special purpose funding
vehicle (an “SPC”),
identified as such in writing from time to time by the Granting Lender to the
Administrative Agent and the Borrower, the option to provide to the Borrower
all or any part of any Loan that such Granting Lender would otherwise be
obligated to make to the Borrower pursuant to this Agreement; provided that (i) nothing herein shall constitute
a commitment by any SPC to make any Loan and (ii) if an SPC 

 

96

 

elects not to exercise such option or otherwise fails to provide all or
any part of such Loan, the Granting Lender shall be obligated to make such Loan
pursuant to the terms hereof.  The making
of a Loan by an SPC hereunder shall utilize the Commitment of the Granting
Lender to the same extent, and as if, such Loan were made by such Granting
Lender.  Each party hereto hereby agrees
that no SPC shall be liable for any indemnity or similar payment obligation
under this Agreement (all liability for which shall remain with the Granting
Lender).  In furtherance of the
foregoing, each party hereto hereby agrees (which agreement shall survive the
termination of this Agreement) that, prior to the date that is one year and one
day after the payment in full of all outstanding commercial paper or other
senior indebtedness of any SPC, it will not institute against, or join any
other person in instituting against, such SPC any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under the laws of the United
States or any State thereof.  In
addition, notwithstanding anything to the contrary contained in this Section 9.04,
any SPC may (i) with notice to, but without the prior written consent of,
the Borrower and the Administrative Agent and without paying any processing fee
therefor, assign all or a portion of its interests in any Loans to the Granting
Lender or to any financial institutions (consented to by the Borrower and
Administrative Agent) providing liquidity and/or credit support to or for the
account of such SPC to support the funding or maintenance of Loans and (ii) disclose
on a confidential basis any non-public information relating to its Loans to any
rating agency, commercial paper dealer or provider of any surety, guarantee or
credit or liquidity enhancement to such SPC.

 

(j)  Neither Holdings nor the Borrower
shall assign or delegate any of its rights or duties hereunder without the
prior written consent of the Administrative Agent, the Issuing Bank and each
Lender, and any attempted assignment without such consent shall be null and
void.

 

(k)  In the event that any Revolving
Credit Lender shall become a Defaulting Lender or S&P, Moody’s or Thompson’s
BankWatch (or InsuranceWatch Ratings Service, in the case of Lenders that are
insurance companies (or Best’s Insurance Reports, if such insurance company is
not rated by Insurance Watch Ratings Service)) shall, after the date that any
Lender becomes a Revolving Credit Lender, downgrade the long-term certificate
deposit ratings of such Lender, and the resulting ratings shall be below BBB-,
Baa3 and C (or BB, in the case of a Lender that is an insurance company (or B,
in the case of an insurance company not rated by InsuranceWatch Ratings
Service)) (or, with respect to any Revolving Credit Lender that is not rated by
any such ratings service or provider, the Issuing Bank shall have reasonably
determined that there has occurred a material adverse change in the financial
condition of any such Lender, or a material impairment of the ability of any
such Lender to perform its obligations hereunder, as compared to such condition
or ability as of the date that any such Lender became a Revolving Credit
Lender) then the Issuing Bank shall have the right, but not the obligation, at
its own expense, upon notice to such Lender and the Administrative Agent, to
replace such Lender with an assignee (in accordance with and subject to the
restrictions contained in paragraph (b) above), and such Lender 

 

97

 

hereby agrees to transfer and assign without recourse (in accordance
with and subject to the restrictions contained in paragraph (b) above)
all its interests, rights and obligations in respect of its Revolving Credit
Commitment to such assignee; provided, however, that (i) no such assignment shall conflict
with any law, rule and regulation or order of any Governmental Authority
and (ii) the Issuing Bank or such assignee, as the case may be, shall pay
to such Lender in immediately available funds on the date of such assignment the
principal of and interest accrued to the date of payment on the Loans made by
such Lender hereunder and all other amounts accrued for such Lender’s account
or owed to it hereunder.

 

SECTION 9.05.  Expenses; Indemnity.  (a)  The
Borrower and Holdings agree, jointly and severally, to pay all out-of-pocket
expenses reasonably incurred by the Administrative Agent, the Collateral Agent
and the Issuing Bank in connection with the syndication of the Credit
Facilities and the preparation and administration of this Agreement and the
other Loan Documents or in connection with any amendments, modifications or
waivers of the provisions hereof or thereof (whether or not the transactions
hereby or thereby contemplated shall be consummated) or incurred by the
Administrative Agent, the Collateral Agent, the Issuing Bank or any Lender in
connection with the enforcement or protection of its rights in connection with
this Agreement and the other Loan Documents or in connection with the Loans
made or Letters of Credit issued hereunder, including the fees, charges and
disbursements of Cravath, Swaine & Moore LLP, counsel for the
Administrative Agent and the Collateral Agent, and, in connection with any such
enforcement or protection, the fees, charges and disbursements of any other
counsel for the Administrative Agent, the Collateral Agent or any Lender; provided that such fees, charges and
disbursements shall be limited to one external counsel (and appropriate
specialty and local counsel) for all such persons except that separate counsel
may be retained to the extent there are actual or potential conflicting
interests between or among such persons arising out of the matters within the
scope of this Section 9.05(a).

 

(b)  The Borrower and Holdings agree,
jointly and severally, to indemnify the Administrative Agent, the Collateral
Agent, the Lead Arranger, each Lender, the Issuing Bank and each Related Party
of any of the foregoing persons (each such person being called an “Indemnitee”) against, and to
hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including reasonable counsel fees, charges
and disbursements; provided that
such fees, charges and disbursements shall be limited to one external counsel
(and appropriate specialty and local counsel) for all such persons except that
separate counsel may be retained to the extent there are actual or potential
conflicting interests between or among such persons arising out of the matters
within the scope of this Section 9.05(b), incurred by or asserted against
any Indemnitee arising out of, in any way connected with, or as a result of (i) the
execution or delivery of this Agreement or any other Loan Document or any
agreement or instrument contemplated thereby, the performance by the parties
thereto of their respective obligations thereunder or the consummation of the
Transactions and the other transactions contemplated thereby, (ii) the use
of the proceeds of the Loans or issuance of Letters of Credit, (iii) any
claim, litigation, investigation or proceeding 

 

98

 

relating to any of the foregoing, whether or not any Indemnitee is a
party thereto (and regardless of whether any claim or proceeding is brought by
a third party or by Holdings, the Borrower or any of their respective
Affiliates), or (iv) any actual or alleged presence or Release of
Hazardous Materials on any property currently or formerly owned or operated by
the Borrower or any of the Subsidiaries, or any Environmental Liability related
in any way to the Borrower or the Subsidiaries; provided
that such indemnity shall not, as to any Indemnitee, be available  to the extent that such losses, claims,
damages, liabilities or related expenses are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the
gross negligence, bad faith or willful misconduct of such Indemnitee.

 

(c)  To the extent that Holdings and the
Borrower fail to pay any amount required to be paid by it to the Administrative
Agent, the Collateral Agent, the Lead Arranger or the Issuing Bank under
paragraph (a) or (b) of this Section, each Lender severally agrees to
pay to the Administrative Agent, the Lead Arranger, the Collateral Agent or the
Issuing Bank, as the case may be, such Lender’s pro rata share (determined as
of the time that the applicable unreimbursed expense or indemnity payment is
sought) of such unpaid amount; provided that
the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against the
Administrative Agent, the Lead Arranger, the Collateral Agent or the Issuing
Bank in its capacity as such.  For
purposes hereof, a Lender’s “pro rata share” shall be determined based upon its
share of the sum of the Aggregate Revolving Credit Exposure, outstanding Term
Loans and unused Commitments at the time.

 

(d)  To the extent permitted by
applicable law, neither Holdings nor the Borrower 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, this
Agreement or any agreement or instrument contemplated hereby, the Transactions,
any Loan or Letter of Credit or the use of the proceeds thereof.

 

(e)  The provisions of this Section 9.05
shall remain operative and in full force and effect regardless of the
expiration of the term of this Agreement, the consummation of the transactions
contemplated hereby, the repayment of any of the Loans and L/C Disbursements,
the expiration of the Commitments, the expiration of any Letter of Credit, the
invalidity or unenforceability of any term or provision of this Agreement or
any other Loan Document, or any investigation made by or on behalf of the
Administrative Agent, the Collateral Agent, any Lender or the Issuing
Bank.  All amounts due under this Section 9.05
shall be payable on written demand therefor.

 

SECTION 9.06.  Right of Setoff.  If an Event of Default shall have occurred
and be continuing, each Lender is hereby authorized at any time and from time
to time, except to the extent prohibited by law, to set off and apply any and
all deposits (general or special, time or demand, provisional or final) at any
time held and other indebtedness 

 

99

 

at any time owing by such Lender to or for
the credit or the account of the Borrower or Holdings against any of and all the
obligations of the Borrower or Holdings now or hereafter existing under this
Agreement and other Loan Documents held by such Lender, irrespective of whether
or not such Lender shall have made any demand under this Agreement or such
other Loan Document and although such obligations may be unmatured.  The rights of each Lender under this Section 9.06
are in addition to other rights and remedies (including other rights of setoff)
which such Lender may have.

 

SECTION 9.07.  Applicable Law.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
(OTHER THAN LETTERS OF CREDIT AND AS EXPRESSLY SET FORTH IN OTHER LOAN
DOCUMENTS) SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
THE STATE OF NEW YORK.  EACH LETTER OF CREDIT
SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OR
RULES DESIGNATED IN SUCH LETTER OF CREDIT, OR IF NO SUCH LAWS OR RULES ARE
DESIGNATED, THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS MOST
RECENTLY PUBLISHED AND IN EFFECT, ON THE DATE SUCH LETTER OF CREDIT WAS ISSUED,
BY THE INTERNATIONAL CHAMBER OF COMMERCE (THE “UNIFORM CUSTOMS”) AND, AS
TO MATTERS NOT GOVERNED BY THE UNIFORM CUSTOMS, THE LAWS OF THE STATE OF
NEW YORK.

 

SECTION 9.08.  Waivers; Amendment.  (a)  No
failure or delay of the Administrative Agent, the Collateral Agent, any Lender
or the Issuing Bank in exercising any power or right hereunder or under any
other Loan Document shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative
Agent, the Collateral Agent, the Issuing Bank and the Lenders hereunder and
under the other Loan Documents are cumulative and are not exclusive of any
rights or remedies that they would otherwise have.  No waiver of any provision of this Agreement
or any other Loan Document or consent to any departure by the Borrower or any
other Loan Party therefrom shall in any event be effective unless the same
shall be permitted by paragraph (b) below, and then such waiver or
consent shall be effective only in the specific instance and for the purpose
for which given.  No notice or demand on
the Borrower or Holdings in any case shall entitle the Borrower or Holdings to
any other or further notice or demand in similar or other circumstances.

 

(b)  Neither this Agreement nor any
provision hereof nor any other Loan Document or any provision thereof may be
waived, amended or modified except pursuant to an agreement or agreements in
writing entered into by the Borrower, Holdings and the Required Lenders; provided, however, that
no such agreement shall (i) decrease the principal amount of, or
extend the maturity of or any scheduled principal payment date or date for the
payment of any interest on any Loan or any date for reimbursement of an L/C
Disbursement, or waive or excuse any such payment or any part thereof, or
decrease the rate of interest on any Loan or L/C Disbursement, without the
prior written consent of each Lender directly 

 

100

 

adversely affected thereby, (ii) increase or extend the
Commitment or decrease or extend the date for payment of any Fees of any Lender
without the prior written consent of such Lender, (iii) amend or
modify the pro rata requirements of Section 2.17, the provisions of Section 9.04(j) or
the provisions of this Section or release any Subsidiary Guarantor (other
than in connection with Asset Sales permitted under Section 6.05 or as
otherwise specified in this Agreement or any Security Document) or all or
substantially all of the Collateral, without the prior written consent of each
Lender, (iv) change the provisions of any Loan Document in a manner
that by its terms adversely affects the rights in respect of payments due to
Lenders holding Loans of one Class differently from the rights of Lenders
holding Loans of any other Class without the prior written consent of
 Lenders holding a majority in interest of the outstanding Loans and
unused Commitments of each adversely affected Class, (v) modify the
protections afforded to an SPC pursuant to the provisions of Section 9.04(i) without
the written consent of such SPC or (vi) reduce the percentage contained in
the definition of the term “Required Lenders” without the prior written consent
of each Lender (it being understood that with the consent of the Required
Lenders, additional extensions of credit pursuant to this Agreement may be
included in the determination of the Required Lenders on substantially the same
basis as the Term Loan Commitments and Revolving Credit Commitments on the date
hereof); provided  further
that no such agreement shall amend, modify or otherwise affect the rights or
duties of the Administrative Agent, the Collateral Agent or the Issuing Bank
hereunder or under any other Loan Document without the prior written consent of
the Administrative Agent, the Collateral Agent or the Issuing Bank.  Notwithstanding the foregoing, with the
consent of Holdings, the Borrower and the Required Lenders, this Agreement
(including Section 2.17) may be amended (x) to allow the Borrower to
prepay Loans of a Class on a non-pro rata basis in connection with offers
made to all the Lenders of such Class pursuant to procedures approved by
the Administrative Agent and (y) to allow the Borrowers to make loan
modification offers to all the Lenders of one or more classes of Loans that, if
accepted, would (A) allow the maturity and/or scheduled amortization of
the Loans of the accepting Lenders to be extended, (B) increase the
Applicable Percentages and/or Fees payable with respect to the Loans and
Commitments of the accepting Lenders and/or (C) treat the modified Loans
and Commitments of the accepting Lenders as a new Class of Loans and
Commitments for all purposes under this Agreement.

 

(c)  The Administrative Agent and the
Borrower may amend any Loan Document to correct administrative or manifest
errors or omissions, or to effect administrative changes that are not adverse
to any Lender; provided, however,
that no such amendment shall become effective until the fifth Business Day
after it has been posted to the Lenders, and then only if the Required Lenders
have not objected in writing thereto within such five Business Day Period.

 

SECTION 9.09.  Interest Rate Limitation.  Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan or
participation in any L/C Disbursement, together with all fees, charges and
other amounts which are treated as interest on such Loan or participation in
such L/C Disbursement under applicable law 

 

101

 

(collectively the “Charges”), shall
exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for,
charged, taken, received or reserved by the Lender holding such Loan or
participation in accordance with applicable law, the rate of interest payable
in respect of such Loan or participation hereunder, together with all Charges
payable in respect thereof, shall be limited to the Maximum Rate and, to the
extent lawful, the interest and Charges that would have been payable in respect
of such Loan or participation but were not payable as a result of the operation
of this Section 9.09 shall be cumulated and the interest and Charges
payable to such Lender in respect of other Loans or participations or periods
shall be increased (but not above the Maximum Rate therefor) until such
cumulated amount, together with interest thereon at the Federal Funds Effective
Rate to the date of repayment, shall have been received by such Lender.

 

SECTION 9.10.  Entire Agreement.  This Agreement, the Fee Letter and the other
Loan Documents constitute the entire contract between the parties relative to
the subject matter hereof.  Any other
previous agreement among the parties with respect to the subject matter hereof
is superseded by this Agreement and the other Loan Documents.  Nothing in this Agreement or in the other
Loan Documents, expressed or implied, is intended to confer upon any person
(other than the parties hereto and thereto, their respective successors and
assigns permitted hereunder (including any Affiliate of the Issuing Bank that
issues any Letter of Credit) and, to the extent expressly contemplated hereby,
the Related Parties of each of the Administrative Agent, the Collateral Agent,
the Issuing Bank and the Lenders) any rights, remedies, obligations or
liabilities under or by reason of this Agreement or the other Loan Documents.

 

SECTION 9.11.  WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT
OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN
DOCUMENTS.  EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT
IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.11.

 

SECTION 9.12.  Severability. 
In the event any one or more of the provisions contained in this
Agreement or in any other Loan Document should be held invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein and therein shall not in any way be
affected or impaired thereby (it being understood that the invalidity of a
particular provision in a particular jurisdiction shall not in and of itself
affect the validity of such provision in any other jurisdiction).  The parties shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with
valid provisions the economic effect of 

 

102

 

which comes as close as possible to that of
the invalid, illegal or unenforceable provisions.

 

SECTION 9.13.  Counterparts. 
This Agreement may be executed in counterparts (and by different parties
hereto on different counterparts), each of which shall constitute an original
but all of which when taken together shall constitute a single contract, and
shall become effective as provided in Section 9.03.  Delivery of an executed signature page to
this Agreement by facsimile or other customary means of electronic transmission
shall be as effective as delivery of a manually signed counterpart of this
Agreement.

 

SECTION 9.14.  Headings. 
Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement
and are not to affect the construction of, or to be taken into consideration in
interpreting, this Agreement.

 

SECTION 9.15.  Jurisdiction;  Consent to Service of Process.  (a) 
Each of Holdings and the Borrower hereby irrevocably and unconditionally
submits, for itself and its property, to the exclusive jurisdiction of any
New York State court or Federal court of the United States of America
sitting in the Borough of Manhattan, and any appellate court from any thereof,
in any action or proceeding arising out of or relating to this Agreement or the
other Loan Documents, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that
all claims in respect of any such action or proceeding may be heard and
determined in such New York State or, to the extent permitted by law, in
such Federal court.  Each of the parties
hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. 
Nothing in this Agreement shall affect any right that the Administrative
Agent, the Collateral Agent, the Issuing Bank or any Lender may otherwise have
to bring any action or proceeding relating to this Agreement or the other Loan
Documents against Holdings, the Borrower or their respective properties in the
courts of any jurisdiction.

 

(b)  Each of Holdings and the Borrower
hereby irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection which it may now or hereafter have
to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement or the other Loan Documents in any New York
State or Federal court of the United States of America sitting in the Borough
of Manhattan, and any appellate court from any thereof.  Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

 

(c)  Each party to this Agreement
irrevocably consents to service of process in the manner provided for notices
in Section 9.01.  Nothing in this
Agreement will affect the right of any party to this Agreement to serve process
in any other manner permitted by law.

 

103

 

SECTION 9.16.  Confidentiality.  Each of the Administrative Agent, the
Collateral Agent, the Issuing Bank and the Lenders agrees until the first
anniversary of the termination of this Agreement to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed only (a) to its and its Affiliates’ officers, directors,
employees and agents, including accountants, legal counsel and other advisors
(it being understood that the persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep
such Information confidential), (b) to the extent requested by any
regulatory authority or quasi-regulatory authority (such as the National
Association of Insurance Commissioners), (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (d) in
connection with the exercise of any remedies hereunder or under the other Loan
Documents or any suit, action or proceeding relating to the enforcement of its
rights or obligations hereunder or thereunder, (e) subject to an agreement
containing provisions substantially the same as those of this Section 9.16,
to (i) any actual or prospective assignee of or participant in any of its
rights or obligations under this Agreement and the other Loan Documents or (ii) any
actual or prospective counterparty (or its advisors) to any swap or derivative
transaction relating to the Borrower or any Subsidiary or any of their
respective obligations, (f) with the consent of the Borrower or (g) to
the extent such Information becomes publicly available other than as a result
of a breach of this Section 9.16. 
For the purposes of this Section, “Information” shall mean all information
received from or on behalf of the Borrower, Holdings or any Subsidiary and
related to the Borrower, Holdings or any Subsidiary or their business, other
than any such information that was available to the Administrative Agent, the
Collateral Agent, the Issuing Bank or any Lender on a nonconfidential basis
prior to its disclosure by or on behalf of the Borrower, Holdings or any
Subsidiary; provided that, in the
case of Information received from or on behalf of the Borrower, Holdings or any
Subsidiary after the date hereof, such information is identified at the time of
delivery as confidential.  Any person
required to maintain the confidentiality of Information as provided in this Section 9.16
shall be considered to have complied with its obligation to do so if such
person has exercised the same degree of care to maintain the confidentiality of
such Information as such person would accord its own confidential information.

 

SECTION 9.17.  Release of Liens and Guarantees of Subsidiaries.  If any of the Collateral shall be sold,
transferred or otherwise disposed of by the Borrower, Holdings or any other
Loan Party in a transaction permitted by this Agreement (including by way of
merger, consolidation or in connection with the sale of a Subsidiary permitted
hereunder), then the Collateral Agent, at the request and sole expense of the
Borrower or such other Loan Party, shall execute and deliver without recourse,
representation or warranty all releases or other documents necessary or
desirable for the release of the Liens created by any of the Security Documents
on such Collateral.  In the case of any
such sale, transfer or disposal of any property constituting Collateral in a
transaction not constituting an Asset Sale, the Liens created by any of the
Security Documents on such property shall be automatically released (without
need for further action by any person). 
At the request and sole expense of the Borrower, a Subsidiary that is a
Loan Party shall be released from all its obligations under this Agreement and
under all other Loan Documents in the event that all the Equity Interests of
such Subsidiary shall be sold,

 

104

 

transferred or otherwise disposed of in a
transaction permitted by this Agreement (including by way of merger or
consolidation), and the Administrative Agent and the Collateral Agent, at the
request and sole expense of the Borrower, shall execute and deliver without
recourse, representation or warranty all releases or other documents necessary
or desirable to evidence or confirm the foregoing.

 

SECTION 9.18.  USA PATRIOT Act Notice.  Each Lender and the Administrative Agent (for
itself and not on behalf of any Lender) hereby notifies Holdings and the
Borrower that pursuant to the requirements of the USA PATRIOT Act, it is
required to obtain, verify and record information that identifies Holdings and
the Borrower, which information includes the name and address of Holdings and
the Borrower and other information that will allow such Lender or the
Administrative Agent, as applicable, to identify Holdings the Borrower in
accordance with the USA PATRIOT Act.

 

SECTION 9.19.  Lender Action.  Each Lender agrees that it shall
not take or institute any actions or proceedings, judicial or otherwise, for
any right or remedy against any Loan Party or any other obligor under any of
the Loan Documents (including the exercise of any right of setoff, rights on
account of any banker’s lien or similar claim or other rights of self-help), or
institute any actions or proceedings, or otherwise commence any remedial
procedures, with respect to any Collateral or any other property of any such
Loan Party, unless expressly provided for herein or in any other Loan Document,
without the prior written consent of the Administrative Agent. The provisions
of this Section 9.19 are for the sole benefit of the Lenders and shall not
afford any right to, or constitute a defense available to, any Loan Party.

 

SECTION 9.20.  Judgment Currency.  (a)  The obligations of the Borrower and
the other Loan Parties hereunder and under the other Loan Documents to make
payments in dollars or in any Alternate Currency (the “Obligation Currency”)
shall not be discharged or satisfied by any tender or recovery pursuant to any
judgment expressed in or converted into any currency other than the Obligation
Currency, except to the extent that such tender or recovery results in the
effective receipt by the Administrative Agent or an Issuing Bank of the full
amount of the Obligation Currency expressed to be payable to the Administrative
Agent or such Issuing Bank under this Agreement or the other Loan
Documents.  If, for the purpose of
obtaining or enforcing judgment against the Borrower or any other Loan Party or
in any court or in any jurisdiction, it becomes necessary to convert into or
from any currency other than the Obligation Currency (such currency being
hereinafter referred to as the “Judgment Currency”) an amount due in the Obligation
Currency, the conversion shall be made at the Alternative Currency Equivalent
or Dollar Equivalent, in the case of any Alternative Currency or dollars, and,
in the case of other currencies, the rate of exchange (as quoted by the Administrative
Agent or if the Administrative Agent does not quote a rate of exchange on such
currency, by a known dealer in such currency designated by the Administrative
Agent) determined, in each case, as of the date immediately preceding the day
on which the judgment is given (such Business Day being hereinafter referred to
as the “Judgment
Currency Conversion Rate”).

 

105

 

(b)  If there is a change in the rate of
exchange prevailing between the Judgment Currency Conversion Date and the date
of actual payment of the amount due, the Borrower covenants and agrees to pay,
or cause to be paid, as a separate obligation and notwithstanding any judgment,
such additional amounts, if any (but in any event not a lesser amount), as may
be necessary to ensure that the amount paid in the Judgment Currency, when
converted at the rate of exchange prevailing on the date of payment, will
produce the amount of the Obligation Currency which could have been purchased
with the amount of Judgment Currency stipulated in the judgment or judicial
award at the rate of exchange prevailing on the Judgment Currency Conversion
Date.

 

(c)  For purposes of determining the
Alternative Currency Equivalent or Dollar Equivalent or rate of exchange for
this Section, such amounts shall include any premium and costs payable in
connection with the purchase of the Obligation Currency.

 

SECTION 9.21.  European Monetary Union.  If, as a result of the further
implementation of European monetary union, (a) any Alternative Currency
(other than the euro) ceases to be lawful currency of the nation issuing the
same and is replaced by the euro, then any amount payable hereunder by any
party hereto in such currency shall instead be payable in euro and the amount
so payable shall be determined by translating the amount payable in such
currency to euro at the exchange rate recognized by the European Central Bank
for the purpose of replacing such currency by the euro, or (b) any such
Alternative Currency and the euro are at the same time recognized by the
central bank or comparable authority of the nation issuing such currency as
lawful currency of such nation, then (i) any Alternative Currency Letter
of Credit issued at such time that would otherwise be denominated in such
currency shall be denominated in euro and (ii) any other amount payable by
any party hereto in such currency shall be payable in such currency or in euro
(in an amount determined as set forth in clause (a)), at the election of the
obligor.

 

106

 

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

 

	
   

  	
   

  	
  IKARIA
  ACQUISITION INC.,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
  /s/
  Daniel Tassé

  
	
   

  	
   

  	
   

  	
  Name: Daniel Tassé

  
	
   

  	
   

  	
   

  	
  Title:
  President

  

 

	
   

  	
   

  	
  IKARIA,
  INC.,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
  /s/
  Daniel Tassé

  
	
   

  	
   

  	
   

  	
  Name: Daniel Tassé

  
	
   

  	
   

  	
   

  	
  Title:
  Chairman and Chief Executive Officer

  

 

Signature
page to Ikaria Credit Agreement

 

 

	
   

  	
  CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, individually
  and as Administrative Agent, Collateral Agent and Issuing Bank,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
  /s/
  John D. Toronto

  
	
   

  	
   

  	
   

  	
  Name: John D. Toronto

  
	
   

  	
   

  	
   

  	
  Title:
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Vipul Dhadda

  
	
   

  	
   

  	
   

  	
  Name: Vipul Dhadda

  
	
   

  	
   

  	
   

  	
  Title:
  Associate

  

 

Signature
page to Ikaria Credit Agreement

 

 

	
   

  	
   

  	
  SIGNATURE PAGE TO THE

  IKARIA ACQUISITION INC.

  CREDIT AGREEMENT DATED

  AS OF THE DATE FIRST WRITTEN ABOVE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name
  of Lender:

  	
  Fifth
  Third Bank

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
  /s/
  Jeffrey A. Thieman

  
	
   

  	
   

  	
     
  Name: Jeffrey A. Thieman

  
	
   

  	
   

  	
     
  Title: Vice President

  
					

 

 

	
   

  	
   

  	
  SIGNATURE PAGE TO THE

  IKARIA ACQUISITION INC.

  CREDIT AGREEMENT DATED

  AS OF THE DATE FIRST WRITTEN ABOVE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name
  of Lender:

  	
  PNC
  Bank, National Association

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
  /s/
  Lori S. Franzon

  
	
   

  	
   

  	
     
  Name: Lori S. Franzon

  
	
   

  	
   

  	
     
  Title: Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  *by

  	
   

  
	
   

  	
   

  	
    Name:

  
	
   

  	
   

  	
    Title:

  
					

 

	
   

  	
  *
  For Lenders requiring two signature blocks.

  

 

 

	
   

  	
   

  	
  SIGNATURE PAGE TO THE

  IKARIA ACQUISITION INC.

  CREDIT AGREEMENT DATED

  AS OF THE DATE FIRST WRITTEN ABOVE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name
  of Lender:

  	
  Sovereign
  Bank

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
  /s/
  Ronald Andersen

  
	
   

  	
   

  	
     
  Name: Ronald Andersen

  
	
   

  	
   

  	
     
  Title: Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  *by

  	
   

  
	
   

  	
   

  	
    Name:

  
	
   

  	
   

  	
    Title:

  
					

 

	
   

  	
  *
  For Lenders requiring two signature blocks.

  

 

 

	
   

  	
   

  	
  SIGNATURE PAGE TO THE

  IKARIA ACQUISITION INC.

  CREDIT AGREEMENT DATED

  AS OF THE DATE FIRST WRITTEN ABOVE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name
  of Lender:

  	
  SunTrust
  Bank

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
  /s/
  John Cappellari

  
	
   

  	
   

  	
     
  Name: John Cappellari

  
	
   

  	
   

  	
     
  Title: Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  *by

  	
   

  
	
   

  	
   

  	
    Name:

  
	
   

  	
   

  	
    Title:

  
					

 

	
   

  	
  *
  For Lenders requiring two signature blocks.

  

 

 

 

Schedule 1.01(a)

 

SUBSIDIARY GUARANTORS

 

Ikaria
Research, Inc.

Ikaria
International, Inc.

Ikaria
Therapeutics LLC

Ikaria
Development Subsidiary One LLC

Ikaria
Development Subsidiary Two LLC

INO
Therapeutics LLC

 

 

Schedule 1.01(b)

 

MORTGAGED PROPERTIES

 

All
that land being Parcel B, Parcel F-1, and Tract AC-2-A Westport, located in
sections 68, 69, 93 & 94, T7S, R12E, West Baton Rouge Parish, LA.

 

 

Schedule 1.01(c)

 

EXISTING
LETTERS OF CREDIT

 

	
  LC #

  	
   

  	
  Borrower

  	
   

  	
  Current

  Amount

  	
   

  	
  Effective

  Date

  	
   

  	
  Actual

  Expiration

  Date

  	
   

  	
  Adjusted

  Expiration

  Date

  	
   

  	
  Beneficiary

  
	
  TS-07004646

  	
   

  	
  Ikaria
  Acquisition Inc.

  	
   

  	
  $

  	
  5,000.00

  	
   

  	
  17-Jun-08

  	
   

  	
  17-Jun-10

  	
   

  	
  17-Jun-10

  	
   

  	
  Wisconsin Dept.
  of Regulation & Licensing

  
	
  TS-07004755

  	
   

  	
  Ikaria
  Acquisition Inc.

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  7-Aug-08

  	
   

  	
  7-Aug-10

  	
   

  	
  9-Aug-10

  	
   

  	
  State of
  Nebraska-Dept. of Health & Human Services

  
	
  TS-07004802

  	
   

  	
  Ikaria
  Acquisition Inc.

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  26-Sep-08

  	
   

  	
  26-Sep-10

  	
   

  	
  27-Sep-10

  	
   

  	
  Oregon Board of
  Pharmacy

  
	
  TS-07004852

  	
   

  	
  Ikaria
  Acquisition Inc.

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  24-Nov-08

  	
   

  	
  24-Nov-10

  	
   

  	
  24-Nov-10

  	
   

  	
  California State
  Board of Pharmacy

  
	
  TS-07004853

  	
   

  	
  Ikaria
  Acquisition Inc.

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  18-Nov-08

  	
   

  	
  18-Nov-10

  	
   

  	
  18-Nov-10

  	
   

  	
  Nevada State
  Board of Pharmacy

  
	
  TS-07004860

  	
   

  	
  Ikaria
  Acquisition Inc.

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  24-Nov-08

  	
   

  	
  24-Nov-10

  	
   

  	
  24-Nov-10

  	
   

  	
  Maryland Board
  of Pharmacy

  
	
  TS-07004973

  	
   

  	
  Ikaria
  Acquisition Inc.

  	
   

  	
  $

  	
  305,000.00

  	
   

  	
  28-Jan-09

  	
   

  	
  1-Jan-11

  	
   

  	
  3-Jan-11

  	
   

  	
  Zurich American
  Insurance

  
	
  TS-07005003

  	
   

  	
  Ikaria
  Acquisition Inc.

  	
   

  	
  $

  	
  150,000.00

  	
   

  	
  23-Feb-09

  	
   

  	
  23-Feb-11

  	
   

  	
  23-Feb-11

  	
   

  	
  Lease Plan USA
  Inc.

  

 

 

Schedule 2.01

 

LENDERS AND COMMITMENTS

 

	
  Lender

  	
   

  	
  Revolving

  Commitment

  	
   

  	
  Term Loan

  Commitment

  	
   

  	
  Total

  Commitments

  	
   

  
	
  Credit Suisse AG

  	
   

  	
  $

  	
  7,500,000

  	
   

  	
  $

  	
  207,500,000

  	
   

  	
  $

  	
  215,000,000

  	
   

  
	
  Fifth/Third Bank

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
   

  	
   

  	
  $

  	
  20,000,000

  	
   

  
	
  SunTrust Robinson Humphrey

  	
   

  	
  $

  	
  7,500,000

  	
   

  	
  $

  	
  22,500,000

  	
   

  	
  $

  	
  30,000,000

  	
   

  
	
  Sovereign Bank

  	
   

  	
  $

  	
  5,000,000

  	
   

  	
  $

  	
  15,000,000

  	
   

  	
  $

  	
  20,000,000

  	
   

  
	
  PNC Bank

  	
   

  	
   

  	
   

  	
  $

  	
  5,000,000

  	
   

  	
  $

  	
  5,000,000

  	
   

  
	
  Total

  	
   

  	
  $

  	
  40,000,000

  	
   

  	
  $

  	
  250,000,000

  	
   

  	
  $

  	
  290,000,000

  	
   

  

 

 

Schedule 3.07(a)

 

CERTAIN MATTERS AFFECTING REAL PROPERTY

 

None.

 

 

Schedule 3.07(d)

 

CERTAIN MATTERS AFFECTING INTELLECTUAL PROPERTY

 

None.

 

 

Schedule 3.08

 

SUBSIDIARIES

 

	
  Subsidiary

  	
   

  	
  Owner

  	
   

  	
  Class of

  Ownership Interest

  	
   

  	
  Percentage

  Ownership Interest

  	
   

  
	
  Ikaria Research, Inc.

  	
   

  	
  Ikaria, Inc.

  	
   

  	
  Capital stock

  	
   

  	
  100

  	
  %

  
	
  Ikaria Acquisition Inc.

  	
   

  	
  Ikaria, Inc.

  	
   

  	
  Capital stock

  	
   

  	
  100

  	
  %

  
	
  Ikaria International, Inc.

  	
   

  	
  Ikaria, Inc.

  	
   

  	
  Capital stock

  	
   

  	
  100

  	
  %

  
	
  Ikaria Therapeutics LLC

  	
   

  	
  Ikaria Research, Inc.

  	
   

  	
  Limited liability company membership interest

  	
   

  	
  100

  	
  %

  
	
  Ikaria Development Subsidiary One LLC

  	
   

  	
  Ikaria Acquisition Inc.

  	
   

  	
  Limited liability company membership interest

  	
   

  	
  100

  	
  %

  
	
  Ikaria Development Subsidiary Two LLC

  	
   

  	
  Ikaria Acquisition Inc.

  	
   

  	
  Limited liability company membership interest

  	
   

  	
  100

  	
  %

  
	
  INO Therapeutics LLC

  	
   

  	
  Ikaria Acquisition Inc.

  	
   

  	
  Limited liability company membership interest

  	
   

  	
  100

  	
  %

  
	
  Ikaria Japan K.K.

  	
   

  	
  Ikaria International, Inc.

  	
   

  	
  Capital stock

  	
   

  	
  100

  	
  %

  
	
  Ikaria Australia Pty Ltd

  	
   

  	
  Ikaria International, Inc.

  	
   

  	
  Capital stock

  	
   

  	
  100

  	
  %

  
	
  Ikaria Canada Inc.

  	
   

  	
  Ikaria International, Inc.

  	
   

  	
  Capital stock

  	
   

  	
  100

  	
  %

  

 

 

Schedule 3.09(a)

 

LITIGATION

 

None.

 

 

Schedule 3.09(b)

 

REGULATORY DISCLOSURES

 

None.

 

 

Schedule 3.09(d)

 

FDA NOTICES

 

INO Therapeutics LLC is
currently on “Partial Clinical Hold” for its iCO clinical program, which places
certain conditions on Phase 2 of the study conducted in connection with the
clinical program.

 

 

Schedule 3.14

 

CERTAIN TAX MATTERS

 

None.

 

 

Schedule 3.17

 

ENVIRONMENTAL MATTERS

 

None.

 

 

Schedule 3.18

 

INSURANCE

 

Please see attachments.

 

 

	
  

  	
  CERTIFICATE
  OF LIABILITY INSURANCE

  	
  DATE (MM/DD/YYYY)

  05/12/10

  

 

	
  PRODUCER
                                                                        1-212-295-8000

  Integro USA Inc.

  dba Integro Insurance Brokers

  1 State Street Plaza

  9th Floor

  New York, NY 10004

  Jesse Paulson

  	
  THIS
  CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS
  UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER
  THE COVERAGE AFFORDED BY THE POLICIES BELOW.

  
	
  INSURERS
  AFFORDING COVERAGE

  	
  NAIC #

  
	
   

  	
   

  	
   

  
	
  INSURED

  INO THERAPEUTICS LLC

  IKARIA, INC., (F/K/A Ikaria Holdings, Inc.)

  6 ROUTE 173

  

  CLINTON, NJ 08809

  	
  INSURER A: Zurich American Ins Co

  	
  16535

  
	
  INSURER B: American Guarantee & Liability Ins

  	
  26247

  
	
  INSURER C: NOETIC SPECIALTY INS CO

  	
  17400

  
	
  INSURER D:

  	
   

  
	
  INSURER E:

  	
   

  
	
   

  	
   

  
	
   

  
	
  COVERAGES

  
	
   

  
	
  THE POLICIES OF
  INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE
  POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION
  OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE
  ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED
  HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH
  POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INSR

  LTR

  	
   

  	
  ADD’L

  INSRD

  	
   

  	
  TYPE OF
  INSURANCE

  	
   

  	
  POLICY
  NUMBER

  	
   

  	
  POLICY
  EFFECTIVE

  DATE (MM/DD/YY)

  	
   

  	
  POLICY
  EXPIRATION

  DATE (MM/DD/YY)

  	
   

  	
  LIMITS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A

  	
   

  	
  x

  	
   

  	
  GENERAL LIABILITY

  x COMMERCIAL GENERAL LIABILITY

  oo CLAIMS MADE   x OCCUR

  o                                                                 

  o                                                                 

   

  GEN’L AGGREGATE LIMIT
  APPLIES PER:

  x  POLICY
   o PROJECT o  LOC

  	
   

  	
  GLO 5095678-02

  	
   

  	
  01/01/10

  	
   

  	
  01/01/11

  	
   

  	
  EACH
  OCCURRENCE

  	
   

  	
  $1,000,000

  
	
  DAMAGE
  TO RENTED

  PREMISES
  (Ea occurence)

  	
   

  	
  $1,000,000

  
	
  MED EXP
  (Any one person)

  	
   

  	
  $10,000

  
	
  PERSONAL &
  ADV INJURY

  	
   

  	
  $1,000,000

  
	
  GENERAL
  AGGREGATE

  	
   

  	
  $5,000,000

  
	
  PRODUCTS
  - COMP/OP AGG

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  AUTOMOBILE LIABILITY

  o  ANY
  AUTO

  o  ALL
  OWNED AUTOS

  o  SCHEDULED
  AUTOS

  o  HIRED
  AUTOS

  o  NON-OWNED
  AUTOS

  o                                                                 

  o  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  COMBINED SINGLE LIMIT

  (Ea accident)

  	
   

  	
  $

  
	
  BODILY INJURY

  (Per person)

  	
   

  	
  $

  
	
  BODILY INJURY

  (Per accident)

  	
   

  	
  $

  
	
  PROPERTY DAMAGE

  (Per accident)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  GARAGE LIABILITY

  o  ANY AUTO

  o  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  AUTO ONLY - EA ACCIDENT

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  OTHER THAN

  AUTO ONLY: 

  	
  EA ACC

  	
   

  	
  $

  
	
  AGG

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B

  	
   

  	
   

  	
   

  	
  EXCESS/UMBRELLA LIABILITY

  x OCCUR 
  o  CLAIMS
  MADE

   

  o  DEDUCTIBLE

  x  RETENTION  
  $10,000

  	
   

  	
  AUC-5963968-02

  	
   

  	
  01/01/10

  	
   

  	
  01/01/11

  	
   

  	
  EACH OCCURRENCE

  	
   

  	
  $15,000,000

  
	
  AGGREGATE

  	
   

  	
  $15,000,000

  
	
   

  	
   

  	
  $

  
	
   

  	
   

  	
  $

  
	
   

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WORKERS
  COMPENSATION AND EMPLOYERS’ LIABILITY

   

  ANY
  PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED?

   

  If yes, describe
  under SPECIAL PROVISIONS below

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
  WC
  STATU-

  TORY LIMITS

  	
  o

  	
  OTHER

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E.L. EACH ACCIDENT

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E.L. DISEASE - EA
  EMPLOYEE

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E.L. DISEASE - POLICY
  LIMIT

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C

  	
   

  	
  OTHER

  Products/Completed Ops

  Operations Liability

  Claims Made Coverage

  	
   

  	
   

  N10NJ380001

  SIR: $250,000 per claimant

  Retro Date: 7/20/98

  	
   

  	
   

  01/01/10

  	
   

  	
   

  01/01/11

  	
   

  	
   

  	
   

  	
   

    10,000,000

  
																					

 

	
  DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES
  / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS

   

  Credit Suisse AG, Cayman
  Islands Branch, as Collateral Agent for the Lenders and Administrative Agent
  is included as additional insured Mortgagee on the General Liability Policy,
  per endorsement to be issued by the Insurance Carrier.

  
	
   

  
	
  CERTIFICATE HOLDER

  	
  CANCELLATION

  
	
   

  	
   

  
	
   

  Credit Suisse AG

  Cayman Islands Branch, as Collateral Agent for the Lenders

  

  1 Madison Avenue

  	
  SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE
  CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL
  ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO
  THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY
  KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES.

  
	
   

  	
   

  
	
  New York, NY 10010

  	
   

  	
   

  	
   

  
	
   

  	
  USA

  	
  AUTHORIZED REPRESENTATIVE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ [ILLEGIBLE]

  	
   

  	
   

  

 

	
  ACORD 25 (2001/08)

  	
  Ocaro

  	
  © ACORD
  CORPORATION 1988

  
	
   

  	
  15656134

  	
   

  

 

 

IMPORTANT

 

If
the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be
endorsed. A statement on this certificate does not confer rights to the
certificate holder in lieu of such endorsement(s).

 

If
SUBROGATION IS WAIVED, subject to the terms and conditions of the policy,
certain policies may require an endorsement. A statement on this certificate
does not confer rights to the certificate holder in lieu of such
endorsement(s).

 

DISCLAIMER

 

The
Certificate of Insurance on the reverse side of this form does not constitute a
contract between the issuing insurer(s), authorized representative or producer,
and the certificate holder, nor does it affirmatively or negatively amend,
extend or alter the coverage afforded by the policies listed thereon.

 

ACORD 25 (2001/08)

 

 

	
  POLICY NUMBER: GLO 5095678 02

  	
  COMMERCIAL
  GENERAL LIABILITY

  
	
   

  	
  CG 20
  26 07 04

  

 

THIS
ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

 

ADDITIONAL
INSURED – DESIGNATED

PERSON
OR ORGANIZATION

 

This endorsement modifies insurance provided
under the following:

 

COMMERCIAL GENERAL LIABILITY
COVERAGE PART

 

SCHEDULE

 

Name Of Additional Insured
Person(s) Or Organization(s)

 

Credit Suisse, Cayman Islands
Branch

As Collateral Agent for the
Lender

1 Madison Avenue

New York, NY 10010

 

Information required to complete this
Schedule, if not shown above, will be shown in the Declarations.

 

Section II – Who Is An Insured is amended to
include as an additional insured the person(s) or organization(s) shown in the
Schedule, but only with respect to liability for "bodily injury",
"property damage" or "personal and advertising injury"
caused, in whole or in part, by your acts or omissions or the acts or omissions
of those acting on your behalf: 

A. In the performance of your
ongoing operations; or 

B. In connection
with your premises owned by or rented to you.

 

	
  CG 20 26 07 04

  	
  Copyright,
  ISO Properties, Inc., 2004

  	
   

  

 

1

 

	
  EVIDENCE
  OF PROPERTY INSURANCE

  	
   

  	
  DATE (MM/DD/YY)

  05/12/10

  
	
   

  	
   

  	
   

  
	
  THIS IS EVIDENCE THAT
  INSURANCE AS IDENTIFIED BELOW HAS BEEN ISSUED, IS IN FORCE, AND CONVEYS
  ALL THE RIGHTS AND PRIVILEGES AFFORDED UNDER THE POLICY.

  
	
   

  
	
  PRODUCER

  	
  PHONE             1-212-295-8000

  (A/C. No.Ext)

  	
  COMPANY

  
	
  Axis Insurance Company

  
	
  Integro USA Inc.

  	
   

  
	
  dba Integro Insurance Brokers

  	
   

  
	
  1 State Street Plaza

  	
   

  
	
  9th Floor

  	
   

  
	
  New York, NY 10004

  	
   

  
	
   

  	
   

  
	
  CODE:

  	
  SUB CODE:

  	
   

  
	
  AGENCY

  	
   

  	
   

  
	
  CUSTOMER ID:

  	
   

  
	
   

  	
   

  
	
  INSURED

  	
  LOAN NUMBER

  	
  POLICY
  NUMBER

  	
   

  
	
  INO THERAPEUTICS LLC

  	
   

  	
  MNB736647-10

  	
   

  
	
  IKARIA, INC., (F/K/A Ikaria
  Holdings, Inc.)

  	
   

  	
   

  	
   

  
	
  6 ROUTE 173

  	
  EFFECTIVE
  DATE

  	
  EXPIRATION
  DATE

  	
   

  
	
   

  	
   

  	
   

  	
  CONTINUED
  UNTIL

  
	
   

  	
  01/01/10

  	
  01/01/11

  	
  o TERMINATED IF CHECKED

  
	
  CLINTON, NJ 08809

  	
  THIS REPLACES PRIOR EVIDENCE DATED:

  
	
   

  	
   

  
	
  PROPERTY INFORMATION

  	
   

  
	
   

  	
   

  
	
  LOCATION/DESCRIPTION

  	
   

  
	
   

  	
   

  
	
  All
  Real  & Personal Property Insured under subject Policy.

  
	
   

  
	
  COVERAGE
  INFORMATION

  
	
   

  
	
  COVERAGE/PERILS/FORMS

  	
   

  	
  AMOUNT
  OF INSURANCE

  	
   

  	
  DEDUCTIBLE

  
	
  Blanket
  “All Risk”, Real & Personal Property

  	
   

  	
  81,000,000

  	
   

  	
  50,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REMARKS
  (Including Special Conditions)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  As respects Loss Payee/Lenders Loss
  Payee Endorsement, Credit Suisse AG, Cayman Islands Branch, as Collateral
  Agent for the lenders is included as Lenders Loss Payee per attached
  endorsement, which applies to Real & Personal Property at locations
  covered under this policy.

  
	
   

  
	
  CANCELLATION

  
	
   

  
	
  THE POLICY IS SUBJECT TO
  THE PREMIUMS, FORMS, AND RULES IN EFFECT FOR EACH POLICY PERIOD. SHOULD THE
  POLICY BE TERMINATED, THE COMPANY WILL GIVE THE ADDITIONAL INTEREST IDENTIFIED
  BELOW 30 DAYS WRITTEN NOTICE, AND WILL SEND NOTIFICATION OF ANY CHANGES TO
  THE POLICY THAT WOULD AFFECT THAT INTEREST, IN ACCORDANCE WITH THE POLICY
  PROVISIONS OR AS REQUIRED BY LAW.

  
	
   

  
	
  ADDITIONAL INTEREST

  
	
   

  
	
  NAME AND ADDRESS

  	
  x MORTGAGEE

  	
  o ADDITIONAL INSURED

  
	
   

  	
  x  LOSS PAYEE

  	
  o 

  
	
   

  	
   

  
	
  Credit Suisse AG

  	
  LOAN #

  
	
  Cayman Islands Branch, as Collateral
  Agent For the Lenders

  	
   

  
	
   

  	
   

  
	
  1 Madison Avenue

  	
  AUTHORIZED REPRESENTATIVE

  
	
   

  	
   

  
	
  New York, NY 10010

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
  USA

  	
   

  
	
  ACORD 27 (3/93) BOrr

  	
  © ACORD CORPORATION 1993

  
	
  15661428

  	
   

  
															

 

 

	
  Named Insured

  	
   

  	
   

  	
   

  	
  Endorsement Number

  
	
  Ikaria Holdings. Inc

  	
   

  	
   

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Policy Number

  	
   

  	
  Policy Period

  	
   

  	
  Effective Date of Endorsement

  
	
  MNB736647-10

  	
   

  	
  January 1, 2010 To
  January 1, 2011

  	
   

  	
  January 1, 2010

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued by

  AXIS Insurance Company

  	
   

  	
   

  	
   

  	
   

  

 

THIS
ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

 

LENDER’S LOSS PAYABLE PROVISIONS

 

This endorsement modifies
insurance provided under the AXIS PREMIER PROPERTY FORM

 

SCHEDULE

 

	
  Prem.

  No.

  	
   

  	
  Bldg.

  No.

  	
   

  	
  Description

  of Property

  	
   

  	
  Loss
  Payee

  (Name & Address)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Credit Suisse AG

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Cayman Islands Branch

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  As Collateral Agent for the lenders

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1 Madison Avenue

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  New York, NY 10010

  

 

LENDER’S
LOSS PAYABLE

 

	
  1.

  	
   

  	
  The Loss Payee shown in
  the Schedule is a creditor, including a mortgageholder or trustee, whose
  interest in Insured Property is established by such written instruments as:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a.

  	
  Warehouse receipts;

  
	
   

  	
   

  	
  b.

  	
  A contract for deed;

  
	
   

  	
   

  	
  c.

  	
  Bills of lading;

  
	
   

  	
   

  	
  d.

  	
  Financing statements; or

  
	
   

  	
   

  	
  e.

  	
  Mortgages, deeds of trust,
  or security agreements.

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  For Insured Property in
  which the Insured and a Loss Payee have an insurable interest:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a.

  	
  The Company will pay for
  covered loss or damage to each Loss Payee in their order of precedence, as
  interests may appear.

  
	
   

  	
   

  	
  b.

  	
  The Loss Payee has the
  right to receive loss payment even if the Loss Payee has started foreclosure
  or similar action on the Insured Property.

  
	
   

  	
   

  	
  c.

  	
  If the Company denies the
  Insured’s claim because of the Insured’s acts or because the Insured has failed
  to comply with the terms of the Policy, the Loss Payee will still have the
  right to receive loss payment if the Loss Payee:

  

 

GUA0905
027

Includes
copyrighted material of ISO Commercial Risk Services, Inc., with its
permission

 

1

 

	
   

  	
   

  	
   

  	
  (1)

  	
  Pays any premium due under
  this Policy at the Company’s request if the Insured has failed to do so;

  
	
   

  	
   

  	
   

  	
  (2)

  	
  Submits a signed, sworn
  proof of loss within 60 days after receiving notice from the Company of the
  Insured’s failure to do so; and

  
	
   

  	
   

  	
   

  	
  (3)

  	
  Has notified the Company
  of any change in ownership, occupancy or substantial change in risk known to
  the Loss Payee.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  All of the terms of this
  Policy will then apply directly to the Loss Payee.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  d.

  	
  If Company pays the Loss
  Payee for any loss or damage and deny payment to the Insured because of the
  Insured’s acts or because the Insured has failed to comply with the terms of
  this Policy:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (1)

  	
  The Loss Payee’s rights
  will be transferred to the Company to the extent of the Company’s payment;
  and

  
	
   

  	
   

  	
   

  	
  (2)

  	
  The Loss Payee’s rights to
  recover the full amount of the Loss Payee’s claim will not be Impaired.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  At the Company’s option,
  the Company may pay to the Loss Payee the whole principal on the debt plus
  any accrued interest. In this event, the Insured will pay the remaining debt
  to the Company.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  If the Company cancels
  this policy, the Company will give written notice to the Loss Payee at least:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a.

  	
  10 days before the
  effective date of cancellation if the Company cancels for the Insured’s
  failure to pay premium; or

  
	
   

  	
   

  	
  b.

  	
  30 days before the
  effective date of cancellation if the Company cancels for any other reason.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  If the Company elects not
  to renew this Policy, the Company will give written notice to the Loss Payee
  at least 10 days before the expiration date of this Policy.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  All Other terms and
  conditions remain unchanged

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ [ILLEGIBLE]

  	
   

  
						

 

2

 

Schedule 3.19(a)

 

UCC FILING OFFICES

 

	
  Filing

  	
   

  	
  Filing Office

  
	
  Ikaria, Inc.

  	
   

  	
  Delaware
  Secretary of State

  
	
  Ikaria
  Acquisition Inc.

  	
   

  	
  Delaware
  Secretary of State

  
	
  Ikaria
  Research, Inc.

  	
   

  	
  Delaware
  Secretary of State

  
	
  Ikaria
  International, Inc.

  	
   

  	
  Delaware
  Secretary of State

  
	
  Ikaria
  Therapeutics LLC

  	
   

  	
  Delaware
  Secretary of State

  
	
  Ikaria
  Development Subsidiary One LLC

  	
   

  	
  Delaware
  Secretary of State

  
	
  Ikaria
  Development Subsidiary Two LLC

  	
   

  	
  Delaware
  Secretary of State

  
	
  INO
  Therapeutics LLC

  	
   

  	
  Delaware
  Secretary of State

  

 

 

Schedule 3.19(c)

 

MORTGAGE FILING OFFICES

 

West
Baton Rouge Parish

Clerk
of Court: Mark J. Graffeo

850
Eighth Street

P.
O. Box 107

Port Allen, LA 70767

 

 

Schedule 3.20(a)

 

OWNED REAL PROPERTY

 

	
  Owner

  	
   

  	
  Property

  
	
  INO
  Therapeutics LLC

  	
   

  	
  All
  that land being Parcel B, Parcel F-1, and Tract AC-2-A Westport, located in
  sections 68, 69, 93 & 94, T7S, R12E, West Baton Rouge Parish, LA

  
	
  INO
  Therapeutics LLC

  	
   

  	
  Condominium
  located at 1 Willow Court, Clinton, NJ, 08809 (Beaverbrook Community)

  

 

 

Schedule 3.20(b)

 

LEASED REAL PROPERTY

 

	
  Lessee

  	
   

  	
  Property

  
	
  Ikaria
  Research, Inc. (f/k/a Ikaria, Inc.)

  	
   

  	
  1616
  Eastlake Avenue, Suite 340, Seattle, WA, 98102

  
	
  INO
  Therapeutics LLC

  	
   

  	
  Suwanee
  Creek Business Center, 130 Satellite Boulevard NE, Suite C, Suwanee, GA,
  30024

  
	
  INO
  Therapeutics LLC

  	
   

  	
  175
  E. Crossroads Parkway, Suite C Bolingbrook, IL 60440

  
	
  INO
  Therapeutics LLC

  	
   

  	
  Amberpoint
  Business Park 875 West Sandy Lake Road, Suite 300 Coppell, TX 75019

  
	
  INO
  Therapeutics LLC

  	
   

  	
  12874
  East Florence Avenue, Santa Fe Springs, CA, 90670

  
	
  INO
  Therapeutics LLC

  	
   

  	
  22
  Worlds Fair Drive, Units G, H, J & K, Somerset, NJ, 08873

  
	
  INO
  Therapeutics LLC

  	
   

  	
  2867
  Bayview Dr. Fremont, CA 94538

  
	
  INO
  Therapeutics LLC

  	
   

  	
  6
  Route 173, Clinton, NJ, 08809

  
	
  INO
  Therapeutics LLC

  	
   

  	
  43
  Frontage Road, Perryville, NJ 08827

  
	
  INO
  Therapeutics LLC

  	
   

  	
  2902
  Dairy Drive, Madison, WI, 53718

  
	
  INO
  Therapeutics LLC

  	
   

  	
  2820
  Walton Commons West, Suite 100, Madison, WI, 53718

  
	
  INO
  Therapeutics LLC

  	
   

  	
  6061
  Industrial Drive, Geismar, LA, 70734

  
	
  Ikaria, Inc.
  (f/k/a Ikaria Holdings, Inc.)

  	
   

  	
  400/444
  North Capitol Street NW, Suite 830, Washington, DC 20001

  
	
  Ikaria
  Australia Pty. Ltd

  	
   

  	
  Suite 6,
  Level 1, 695 Burke Road, Hawthorn East, Victoria 3123, Australia

  

 

 

	
  Ikaria
  Canada Inc.

  	
   

  	
  340
  Albert Street, Suite 1300, Ottawa, ON K1R 7Y6, Canada

  
	
  Ikaria
  Japan K.K.

  	
   

  	
  Oak
  Minami Azabu Bldg., 2F, 19-23 Minami-Azabu 3-Chome, Minato-ku, Tokyo, Japan

  

 

 

Schedule 5.12

 

POST-CLOSING COLLATERAL ACTIONS

 

1. Deposit Account Control Agreement Notice to Bank
of America, N.A.

 

2. Deposit Account Control Agreement Notice to PNC Bank

 

3. Deposit Account Control Agreement Amendment to
Bank of America Securities LLC

 

4. Delivery of Pledged Collateral to the Collateral
Agent

 

 

Schedule 6.01

 

EXISTING INDEBTEDNESS

 

None.

 

 

Schedule 6.02

 

EXISTING LIENS

 

None.

 

 

Schedule 6.07

 

TRANSACTIONS WITH CERTAIN AFFILIATES

 

1.  Arrangements with Linde Gas Inc. or Linde AG
and their Affiliates

 

Sale
and Purchase Agreement, dated as of February 22, 2007, by and among Linde
Gas Inc., Linde, Ikaria, Inc. (f/k/a Ikaria Holdings, Inc.), Ikaria
Acquisition Inc., and Ikaria, Inc.

 

Commercial
Agreement by and among INO Therapeutics LLC, Ikaria, Inc. (f/k/a Ikaria
Holdings, Inc.) and AGA AB, dated as of March 28, 2007.

 

Patent
and Know-how License Agreement by and between INO Therapeutics LLC and AGA AB,
dated as of March 28, 2007.

 

Co-existence
Agreement by and between INO Therapeutics LLC and AGA AB, dated March 28,
2007.

 

Distribution
Agreement between INO Therapeutics LLC and AGA SA (Chile), dated March 30,
2005.

 

Distribution
Agreement between INO Therapeutics LLC and AGA SA (Uruguay), dated April 15,
2005.

 

Distribution
Agreement between INO Therapeutics LLC and AGA SA (Argentina), dated April 26,
2005.

 

Distribution
Agreement between INO Therapeutics LLC and AGA FANO FABRICA NACIONAL DE OXIGENA
SA (Colombia), not dated.

 

Existing
ROW Amendment Agreement by and among INO Therapeutics LLC, AGA S.A. (an
Argentinean corporation), BOC Limited, AGA S.A. (a Chilean corporation), AGA
FANO, Fabrica Nacional De Oxigeno S.A. and AGA S.A. (an Uruguayan corporation),
dated as of March 28, 2007.

 

Logistics
Services Agreement between AGA Linde HealthCare, Institutional Division (Puerto
Rico) and INO Therapeutics LLC, dated March 31, 2004.

 

The Settlement Agreement dated as of May 13,
2004, among AGA AB, INO
Therapeutics LLC, Massachusetts General Hospital, Pulmonox Medical, Inc.
and SensorMedics Corporation, as amended by a side letter dated as of May 24,
2005, and as further amended by a Binding Term Sheet for DLNO Collaboration
dated as of December 23, 2005 the terms of which replaced clause 9 of the
Viasys Agreement.

 

 

MGH Partial Assignment Agreement, dated as of March 28,
2007, by and between AGA and INO

 

Viasys
Side Letter from AGA AB to INO Therapeutics LLC, dated March 26, 2007.

 

Distribution Agreement
between INO Therapeutics LLC and BOC Limited (Australia), dated 9 May 2006.

 

2.  Arrangements with the other investors in
Ikaria Holdings, Inc.

 

Investor
Stockholders Agreement by and among Ikaria, Inc. (f/k/a Ikaria Holdings, Inc.),
New Mountain Partners II, L.P., New Mountain Affiliated Investors II, L.P.,
Allegheny New Mountain Partners, L.P., ARCH Venture Fund VI, L.P., Venrock
Partners, L.P., Venrock Associates IV, L.P., Venrock Entrepreneurs Fund IV,
L.P., 5AM Ventures LLC, 5AM Co-Investors LLC, Aravis Venture I L.P., Black
Point Group, LP, Linde Gas Inc., and such other parties signatory thereto on
the date thereof or who will become signatories thereof, as provided therein,
dated as of March 28, 2007.

 

Management
Rights Letter from Ikaria, Inc. (f/k/a Ikaria Holdings, Inc.) to New
Mountain Partners II, L.P., dated March 28, 2007.

 

Management
Rights Letter from Ikaria, Inc. (f/k/a Ikaria Holdings, Inc.) to
Allegheny New Mountain Partners, L.P., dated March 28, 2007.

 

Management
Rights Letter from Ikaria, Inc. (f/k/a Ikaria Holdings, Inc.) to ARCH
Venture Fund VI, L.P., dated March 28, 2007.

 

Management
Rights Letter from Ikaria, Inc. (f/k/a Ikaria Holdings, Inc.) to
Venrock Associates IV, L.P., dated March 28, 2007.

 

Management
Rights Letter from Ikaria, Inc. (f/k/a Ikaria Holdings, Inc.) to 5AM
Ventures LLC, dated March 28, 2007.

 

Management
Rights Letter from Ikaria, Inc. (f/k/a Ikaria Holdings, Inc.) to 5AM
Co-Investors LLC, dated March 28, 2007.

 

Common
Stockholders Agreement by and among Ikaria, Inc. (f/k/a Ikaria Holdings, Inc.)
and the holders of the common stock of Ikaria, Inc. (f/k/a Ikaria Holdings, Inc.)
that are listed as intended signatories to that agreement, dated February 22,
2007.

 

Stock
Restriction Agreement between Ikaria Research, Inc. (f/k/a Ikaria, Inc.)
and Mark Roth dated April 21, 2005.

 

 

EXHIBIT A

 

FORM OF

IKARIA ACQUISITION INC.

ADMINISTRATIVE QUESTIONNAIRE

 

	
  Please
  accurately complete the following information and return via Fax to the
  attention of Agency Administration at Credit Suisse as soon as possible, at
  Fax No. (212) 322-2291.

  
	
   

  
	
  LENDER LEGAL NAME TO
  APPEAR IN DOCUMENTATION:

  
	
   

  
	
  GENERAL INFORMATION - DOMESTIC LENDING OFFICE:

  
	
   

  
	
  Institution Name:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Street Address:

  	
   

  
	
   

  	
   

  
	
  City, State, Zip Code:

  	
   

  
	
   

  	
   

  
	
  GENERAL
  INFORMATION - EURODOLLAR LENDING OFFICE:

  
	
   

  	
   

  
	
  Institution Name:

  	
   

  
	
   

  	
   

  
	
  Street Address:

  	
   

  
	
   

  	
   

  
	
  City, State, Zip Code:

  	
   

  
	
   

  	
   

  
	
  POST-CLOSING,
  ONGOING CREDIT CONTACTS/NOTIFICATION METHODS:

  
	
   

  	
   

  
	
  CREDIT CONTACTS:

  	
   

  
	
   

  	
   

  
	
  Primary Contact:

  	
   

  
	
   

  	
   

  
	
  Street Address:

  	
   

  
	
   

  	
   

  
	
  City, State, Zip Code:

  	
   

  
	
   

  	
   

  
	
  Phone Number:

  	
   

  
	
   

  	
   

  
	
  Fax Number:

  	
   

  
	
   

  	
   

  
	
  Backup Contact:

  	
   

  
	
   

  	
   

  
	
  Street Address:

  	
   

  
	
   

  	
   

  
	
  City, State, Zip Code:

  	
   

  
	
   

  	
   

  
	
  Phone Number:

  	
   

  
			

 

 

	
  Fax Number:

  	
   

  
	
   

  	
   

  
	
  TAX
  WITHHOLDING:

  
	
   

  	
   

  
	
  Nonresident
  Alien

  	
  Y*         N

  
			

 

	
  *
  Form 4224 Enclosed

  	
   

  
	
   

  	
   

  
	
  Tax
  ID Number

  	
   

  	
   

  
	
   

  
	
  POST-CLOSING,
  ONGOING ADMIN. CONTACTS / NOTIFICATION METHODS:

  
	
   

  	
   

  
	
  ADMINISTRATIVE CONTACTS -
  BORROWINGS, PAYDOWNS, FEES, ETC.

  
	
   

  	
   

  
	
  Contact:

  	
   

  
	
   

  	
   

  
	
  Street Address:

  	
   

  
	
   

  	
   

  
	
  City, State, Zip Code:

  	
   

  
	
   

  	
   

  
	
  Phone Number:

  	
   

  
	
   

  	
   

  
	
  Fax Number:

  	
   

  
	
   

  	
   

  
	
  PAYMENT
  INSTRUCTIONS:

  
	
   

  	
   

  
	
  Name of Bank to which
  funds are to be transferred:

  	
   

  
	
   

  	
   

  
	
   

  
	
   

  	
   

  
	
  Routing Transit/ABA number
  of Bank to which funds are to be transferred:

  	
   

  
	
   

  	
   

  
	
  Name of Account, if
  applicable:

  	
   

  
	
   

  	
   

  
	
  Account Number:

  	
   

  
	
   

  	
   

  
	
  Additional information:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  MAILINGS:

  	
   

  
	
   

  	
   

  
	
  Please specify the person to whom the Borrower should send financial
  and compliance information received subsequent to the closing (if different
  from primary credit contact):

  
	
   

  	
   

  
	
  Name:

  	
   

  
	
   

  	
   

  
	
  Street Address:

  	
   

  
						

 

2

 

	
  City, State, Zip Code:

  	
   

  

 

It is very important that all the above information
be accurately completed and that this questionnaire be returned to the person
specified in the introductory paragraph of this questionnaire as soon as
possible.  If there is someone other than
yourself who should receive this questionnaire, please notify us of that person’s
name and Fax number and we will Fax a copy of the questionnaire.  If you have any questions about this form,
please call Agency Administration at Credit Suisse AG.

 

3

 

EXHIBIT B

 

FORM OF

 

ASSIGNMENT AND ACCEPTANCE

 

Reference
is made to the Credit Agreement dated as of May [·], 2010 (as amended, supplemented or otherwise
modified from time to time, the “Credit
Agreement”), among
Ikaria, Inc., a Delaware corporation, Ikaria Acquisition Inc., a Delaware
corporation (the “Borrower”), the lenders from time to time party
thereto (the “Lenders”) and Credit Suisse AG, as administrative
agent (in such capacity, the “Administrative
Agent”) for the
Lenders.  Capitalized terms used but not
otherwise defined herein shall have the meanings set forth in the Credit
Agreement.

 

1.  The Assignor hereby sells and assigns,
without recourse, to the Assignee, and the Assignee hereby purchases and
assumes, without recourse, from the Assignor, subject to and in accordance with
the Credit Agreement, effective as of the Effective Date set forth below (but
not prior to the acceptance by the Administrative Agent of this Assignment and
Acceptance and the registration of the information contained herein in the
Register pursuant to Section 9.04(e) of the Credit Agreement), the
interests set forth below (the “Assigned
Interest”) in the
Assignor’s rights and obligations under the Credit Agreement and the other Loan
Documents, including, without limitation, the amounts and percentages set forth
below of (i) the Commitments of the Assignor on the Effective Date and (ii) the
Loans owing to the Assignor which are outstanding on the Effective Date.  Each of the Assignor and the Assignee hereby
makes and agrees to be bound by all the representations, warranties and
agreements set forth in Section 9.04(c) of the Credit Agreement, a
copy of which has been received by each such party and further represents and
warrants that it has full power and authority and has taken all action
necessary, to execute and deliver this Assignment and Acceptance and to
consummate the transactions contemplated hereby.  From and after the Effective Date (i) the
Assignee shall be a party to and be bound by the provisions of the Credit Agreement
and, to the extent of the interests assigned by this Assignment and Acceptance,
have the rights and obligations of a Lender thereunder and under the Loan
Documents and (ii) the Assignor shall, to the extent of the interests
assigned by this Assignment and Acceptance, relinquish its rights and be
released from its obligations under the Credit Agreement; provided
that the obligations of the Assignor under Section 9.16 of the Credit
Agreement shall survive the execution of this Assignment and Acceptance and the
assignment of interests effected hereby.

 

2.  This Assignment and Acceptance is being
delivered to the Administrative Agent together with (i) if the Assignee is
organized under the laws of a jurisdiction outside the United States, any forms
referred to in Section 2.20(e) of the Credit Agreement, duly
completed and executed by such Assignee, (ii) if the Assignee is not
already a Lender under the Credit Agreement, a completed Administrative
Questionnaire and (iii) if required by Section 9.04(b) of the
Credit Agreement, a processing and recordation fee of $3,500.

 

 

3.  This Assignment and Acceptance shall be
governed by and construed in accordance with the laws of the State of New York.

 

4.  This Assignment and Acceptance shall be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed an
original and all of which taken together shall constitute all of the same
agreement.

 

Date of Assignment:

 

Legal Name of Assignor (“Assignor”):

 

Legal Name of Assignee (“Assignee”):

 

Effective Date of Assignment (“Effective Date”):

 

2

 

	
  Facility/Commitment

  	
   

  	
  Principal Amount

  Assigned(1)

  	
   

  	
  Percentage Assigned of

  Commitment(1) (set forth, to at least

  8 decimals, as a percentage of the

  Facility and the aggregate

  Commitments of all Lenders

  thereunder)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Term
  Loans/Commitments

  	
   

  	
  $

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Revolving
  Loans/Commitments

  	
   

  	
  $

  	
   

  	
  %

  

 

[Remainder of Page Intentionally Left Blank]

 

(1) Amount
of Commitments and/or Loans assigned is governed by Section 9.04(b) of
the Credit Agreement.

 

3

 

	
  The
  terms set forth above are

  	
   

  	
   

  
	
  hereby
  agreed to:

  	
   

  	
  Accepted

  
	
   

  	
   

  	
   

  
	
                                    ,
  as Assignor

  	
   

  	
  CREDIT
  SUISSE AG, as Administrative Agent, [and Issuing Bank](2)

  
	
   

  	
   

  	
   

  
	
  by:

  	
   

  	
   

  
	
   

  	
   

  	
  by:

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
                                     ,
  as Assignee

  	
   

  	
  by:

  
	
   

  	
   

  	
   

  
	
  by:

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
  [IKARIA
  ACQUISITION INC.](3),

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

(2) Consent
of the Issuing Bank required only for assignments of Revolving Credit
Commitments.

 

(3) Consent
of the Borrower shall not be required for any assignment made to another Lender
or an Affiliate of a Lender or after the occurrence and during the continuation
of any Event of Default.  Further, if the
Borrower has not responded within five Business Days to any request for an
assignment, the Borrower shall be deemed to have consented.

 

4

 

EXHIBIT C

 

FORM OF
BORROWING REQUEST

 

Credit Suisse AG, as Administrative Agent

One Madison Avenue

New York, New York  10010

 

ATTN: Loan Operations Agency Group

 

[DATE](1)

 

Ladies and Gentlemen:

 

The undersigned, Ikaria
Acquisition Inc., a Delaware corporation (the “Borrower”),
refers to the Credit Agreement dated as of May [·],
2010 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Ikaria, Inc., the Borrower,
the lenders from time to time party thereto (the “Lenders”)
and Credit Suisse AG, as administrative agent (in such capacity, the “Administrative Agent”) for the Lenders.  Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to such terms in the
Credit Agreement.

 

The Borrower hereby gives
you notice pursuant to Section 2.03 of the Credit Agreement that it
requests a Borrowing under the Credit Agreement, and in that connection sets
forth below the terms on which such Borrowing is requested to be made:

 

	
  (A)

  	
  Type of Borrowing:(2)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (B)

  	
  Date of Borrowing:(3)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (C)

  	
  Account Number and
  Location:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (D)

  	
  Principal Amount of
  Borrowing:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (E)

  	
  Interest Period:(4)

  	
   

  	
   

  

 

(1)   Must be notified irrevocably by telephone  (a) in the case of a Eurodollar Borrowing,
not later than 12:00 noon (New York City time) three Business Days
before a proposed Borrowing, and (b) in the case of an ABR Borrowing, not
later than 12:00 noon (New York City time) on the day of the proposed
Borrowing, in each case to be promptly confirmed by hand delivery or fax.

 

(2)   Specify a Term Borrowing or a Revolving Credit
Borrowing, and whether such Borrowing is to be a Eurodollar Borrowing or an ABR
Borrowing.

 

(3)   Date of Borrowing must be a Business Day.

 

(4)   If such Borrowing is to be a Eurodollar Borrowing, the
Interest Period with respect thereto.

 

 

The Borrower hereby
represents and warrants to the Administrative Agent and the Lenders that, on
the date of this Borrowing Request (except with respect to the Credit Event to
occur on the Closing Date) and on the date of the related Borrowing, the
conditions to lending specified in paragraphs (b) and (c) of Section 4.01
of the Credit Agreement have been satisfied.

 

 

	
   

  	
  IKARIA ACQUISITION INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title:

  
				

 

2

 

EXHIBIT D

 

See Guarantee and Collateral Agreement among Ikaria
Acquisition Inc., Ikaria, Inc. the Subsidiaries of Ikaria, Inc. and
Credit Suisse AG, Cayman Islands Branch, dated as of May 14, 2010, filed as
exhibit 10.2 to Ikaria, Inc.’s Registration Statement on Form S-1
filed on August 17, 2010.

 

 

May 14, 2010

 

To the Lenders and
the Agent

Referred to Below

 

c/o Credit Suisse
AG

One Madison Avenue

New York, NY 10010

 

Ladies and Gentlemen:

 

We have acted as special counsel for (i) Ikaria
Acquisition Inc., a Delaware corporation (the “Company”), (ii) Ikaria, Inc.
(f/k/a Ikaria Holdings, Inc.), a Delaware corporation (“Holdings”), (iii) Ikaria
Research, Inc. (f/k/a Ikaria, Inc.), a Delaware corporation (“Research”),
(iv) Ikaria International, Inc., a Delaware corporation (“International”),
(v) Ikaria Therapeutics LLC, a Delaware limited liability company (“Therapeutics”),
(vi) Ikaria Development Subsidiary One LLC, a Delaware limited liability
company (“Development One”), (vii) Ikaria Development Subsidiary Two LLC,
a Delaware limited liability company (“Development Two”), and (viii) INO
Therapeutics LLC, a Delaware limited liability company (“INO”) in connection
with the Credit Agreement, dated as of May 14, 2010 (the “Financing
Agreement”), among the Company, Holdings, the financial institutions parties
thereto as lenders from time to time (the “Lenders”), and Credit Suisse AG, as
administrative agent and collateral agent for the Lenders (in such capacity,
the “Agent”).  The Company, Holdings,
Research, International, Therapeutics, Development One, Development Two and INO
are referred to herein each as an “Obligor” and collectively as the “Obligors.”  This opinion is delivered to you pursuant to Section 4.02(a)(i) of
the Financing Agreement.  Capitalized
terms used herein that are defined in, or by reference in, the Financing
Agreement have the meanings assigned to such terms therein, or by reference
therein, unless otherwise defined herein. 

 

 

The Uniform Commercial Code
of the State of New York is referred to herein as the “NYUCC.”  Terms used herein that are defined in
Articles 8 and 9 of the NYUCC and not otherwise defined herein have the
meanings assigned to such terms therein. 
The Uniform Commercial Code of the State of Delaware is referred to
herein as the “DEUCC.”  “UCC” means the
NYUCC and the DEUCC, as applicable.  With
your permission, all assumptions and statements of reliance herein have been
made without any independent investigation or verification on our part, and we
express no opinion with respect to the subject matter or accuracy of such
assumptions or items relied upon.

 

In connection with this opinion, we have (i) investigated
such questions of law, (ii) examined originals, or certified, conformed or
reproduction copies, of such documents and records of each Obligor, such
certificates of public officials and such other documents, and (iii) received
such information from officers and representatives of each Obligor and others,
as we have deemed necessary or appropriate for the purposes of this
opinion.  We have examined, among other
documents, the following (each dated as of May 14, 2010, unless otherwise
noted):

 

(a)     an executed copy of the
Financing Agreement;

 

(b)     the Notes issued by the
Borrower and delivered to Lenders on the date hereof pursuant to Section 2.04(e) of
the Financing Agreement;

 

(c)     an executed copy of the
Guarantee and Collateral Agreement (the “Security Agreement”) among the
Obligors and the Agent;

 

(d)     an executed copy of the
Patent Security Agreement among the Obligors and the Agent;

 

(e)     an executed copy of the Trademark
Security Agreement among the Obligors and the Agent;

 

(f)      unfiled copies of the
financing statements on form UCC-1 (the “DE Financing Statements”) naming each
Obligor as a debtor and the Agent as secured party, copies of which are
attached hereto as Exhibit A, which we understand are to be filed
with the Office of the Secretary of State of the State of Delaware, Uniform
Commercial Code Section (the “DE Filing Office”);

 

(g)     the certificate of incorporation or
certificate of formation, as the case may be, of each Obligor;

 

(h)     the by-laws or limited liability company
agreement, as the case may be, of each Obligor;

 

(i)      resolutions adopted by the Board of Directors
or Members, as the case may be, of each Obligor; and

 

2

 

(j)      the Officer’s
Certificate of each Obligor delivered to us in connection with this opinion, a
copy of which is attached hereto as Exhibit B.

 

The documents referred to in items (a) through
(e) above are referred to herein collectively as the “Financing Documents”; and
the documents referred to in items (a) through (j) above are referred
to herein collectively as the “Documents”.

 

In all such examinations, we have assumed the legal capacity of all
natural persons, the genuineness of all signatures, the authenticity of
original and certified documents and the conformity to original or certified
copies of all copies submitted to us as conformed or facsimile, electronic or
photostatic copies.  As to various
questions of fact relevant to the opinions expressed herein, we have relied
upon, and assume the accuracy of, statements and representations contained in
the Documents and certificates and other information of or from representatives
of each Obligor and others and assume compliance on the part of all parties to
the Documents with their covenants and agreements contained therein.  With respect to the opinions expressed in the
paragraph 1 below, we have relied solely upon certificates of public officials.  The opinions expressed in clause (b) of
paragraph 4 below are limited to our review of only those laws and regulations
that, in our experience, are normally applicable to borrowers and guarantors in
transactions of the type contemplated by the Financing Documents.

 

To the extent it may be relevant to the opinions expressed herein, we
have assumed (i) that all of the parties to the Financing Documents (other
than the Obligors) are validly existing and in good standing under the laws of
their respective jurisdictions of organization and have the power and authority
to execute and deliver the Financing Documents, to perform their obligations
thereunder and to consummate the transactions contemplated thereby, (ii) that
the Financing Documents have been duly authorized, executed and delivered by all
of the parties thereto (other than the Obligors), (iii) that the Financing
Documents constitute valid and binding obligations of all the parties thereto
(other than the Obligors), enforceable against such parties in accordance with
their respective terms, and (iv) that all of the parties to the Financing
Documents comply with all laws applicable thereto.

 

Based upon the foregoing, and subject to the limitations,
qualifications and assumptions set forth herein, we are of the opinion that:

 

1.  Each of the Obligors is a corporation or a
limited liability company, as the case may be, validly existing and in good
standing under the laws of the State of Delaware.

 

2.  Each of the Obligors has the
requisite corporate or limited liability company power, as the case may be, and
has taken all corporate or limited liability company action, as the case may
be, necessary to authorize it, to execute and deliver each of the Financing
Documents to which it is a party, to perform its obligations thereunder and to
grant the security interests pursuant to the Financing Documents to which it is
a party.

 

3.  Each of the Obligors has
duly executed and delivered each of the Financing Documents to which it is a
party.

 

3

 

4.  The execution and delivery by each Obligor of
the Financing Documents to which it is a party and the performance by each
Obligor of its obligations thereunder,

 

(a)     do not contravene any
provision of the certificate of incorporation or by-laws, certificate of formation
or limited liability company agreement, as applicable, of such Obligor,

 

(b)     do not violate any law, rule or
regulation of any governmental agency or authority, of the United States of
America or the State of New York, the provisions of the Delaware General
Corporation Law or the Delaware Limited Liability Company Act applicable to
such Obligor or its property and do not require under such laws, rules or
regulations any filing or registration by such Obligor with, or approval or
consent to such Obligor of, any such governmental agency or authority that has
not been made or obtained except (i) those required in the ordinary course
of business after the date hereof in connection with the performance by such
Obligor of its obligations under certain covenants contained in the Financing
Documents, (ii) to perfect or release security interests or other liens
thereunder, and (iii) pursuant to securities and other laws that may be
applicable to the disposition of any collateral subject thereto, and

 

(c)     do not breach or cause a
default under any agreement, do not violate any court decree or order and do
not result in or require the creation or imposition of any security interest,
mortgage or other lien (other than any in favor of the Agent, the Lenders or their
affiliates under any of the Financing Documents or applicable law) under any
agreement, in each case binding upon such Obligor or its property (this opinion
being limited (x) to those agreements, decrees or orders, if any, that
have been identified to us in the Officer’s Certificate and (y) in that we
express no opinion with respect to any of the foregoing not readily
ascertainable from the face of any such agreement, decree or order, or arising
under or based upon any cross default provision insofar as it relates to a
default under an agreement not so identified to us, or arising under or based
upon any covenant of a financial or numerical nature or requiring computation).

 

5.  The
Notes, upon the making of the initial loan evidenced thereby, will be, and each
of the other Financing Documents is, a valid and binding obligation of each
Obligor which is a party thereto enforceable against such Obligor in accordance
with its terms.

 

6.  The borrowings by the Company under the
Financing Agreement and the application of the proceeds thereof as provided
therein do not violate Regulations T, U or X of the Board of Governors of the
Federal Reserve System.

 

7.  No Obligor is an “investment company”
registered or required to be registered under the Investment Company Act of
1940, as amended.

 

4

 

8.  The Security Agreement creates  in
favor of the Agent for the benefit of the Secured Parties (as defined in the
Security Agreement), as security for the Obligations (as defined in the
Security Agreement), a security interest in all right, title and interest
of each Obligor in such Collateral (as defined in the Security Agreement) in
which a security interest may be created under Article 9 of the NYUCC (the
“Article 9 Collateral”).

 

9.  Upon filing of the DE Financing Statements
with the DE Filing Office, the Agent will have for the benefit of the Secured
Parties a perfected security interest in each Obligor’s right, title and
interest in that portion of the Article 9 Collateral in which a security
interest may be perfected by filing a financing statement under the DEUCC.

 

10.  (a) The
Security Agreement, together with physical delivery of the certificates
representing the shares of stock or membership interests, as applicable, identified
on Schedule II to the Security Agreement (the “Pledged Securities”) to the
Agent in the State of New York, creates in favor of the Agent for the benefit
of the Secured Parties a perfected security interest in the Obligors’ rights in
the Pledged Securities.

 

(b)
Assuming the Agent (and the Secured Parties) acquires its interest in the
Pledged Securities without notice of any adverse claim and that each of the
Pledged Securities is either in bearer form or is in registered form issued in
the name of the Agent or accompanied by an effective indorsement to the Agent
or in blank, the Agent will acquire its security interest in the Pledged
Securities free of any adverse claim.

 

We have not been engaged
to represent or advise any Obligor professionally with respect to any
legal proceeding pending before any court or administrative agency or authority
of the United States of America, the State of New York or any other
jurisdiction, or any arbitration tribunal, against or directly affecting any
Obligor or any of its properties which seeks to enjoin or otherwise prevent the
performance of, or to recover any damages or obtain relief in connection with
or which questions the validity or enforceability of any of the Financing
Documents.  In making the foregoing statement,
we have endeavored, to the extent we have believed necessary, to determine from
lawyers currently in our firm who have performed substantive legal services for
the Obligors in connection with the Financing Documents, whether such services
involved substantive attention in the form of legal representation concerning
pending legal proceedings of the nature referred to above.  Beyond that, we have not made any review,
search or investigation of public files or records or files or records of the
Obligors or of their transactions, or any other investigation or inquiry with
respect to the foregoing statement.

 

We have assumed for purposes of our opinions in
paragraphs 8 to 10 the following:

 

(i)            each Obligor has (or has the power to transfer)
sufficient rights in the Collateral for the security interest in favor of the
Agent to attach and value has been given by the Lenders to each of the Obligors
for the security interest granted by each Obligor in the Collateral;

 

5

 

(ii)           that (x) the certificate of incorporation or
certificate of formation, as the case may be, of each Obligor reviewed by us
has not been amended, (y) the name and jurisdiction of organization of
each Obligor is true and accurate in accordance with the records of the
Secretary of State of the State of Delaware and (z) there are no
proceedings for the merger, consolidation, dissolution, liquidation,
termination, change of jurisdiction of organization or change of name of any
Obligor;

 

(iii)          the Security Agreement  and the DE Financing Statements reasonably identify what is
described as the collateral;

 

(iv)          the Agent (or any bailee of the Agent) is not acting
as a securities intermediary in connection with any of the Pledged Securities;

 

(v)           the Obligors do not control, are not controlled by,
and are not under common control with, the Agent (or any bailee of the Agent);
the Agent, or any bailee that has acknowledged in an authenticated record that
it is holding on behalf of the Agent, retains continuous and exclusive
possession in the State of New York of the Pledged Securities and has
possession of such items solely on behalf of the Secured Parties and not any
other person; the Pledged Securities are the only certificates issued and
outstanding with respect to the shares of capital stock or membership interests
intended to be represented thereby; and

 

(vi)          the terms of the membership interests in the limited
liability companies constituting a portion of the Pledged Securities expressly
provide that such interests are securities.

 

The opinions set forth above
are subject to the following qualifications:

 

(A) 
We express no opinion as to:

 

(i)            the validity, binding effect or enforceability of
any provision in any Financing Document:

 

(a)   relating to (I)  forum selection or submission
to jurisdiction (including any waiver of any objection to venue in any court or
that a court is an inconvenient forum) to the extent that the validity, binding
effect or enforceability of such provision is to determined by any court other
than a court of the State of New York, or (II) choice of governing law to
the extent that the validity, binding effect or enforceability of such
provision (x) is determined by any court other than a court of the State
of New York or a federal court sitting in the State of New York, in each case
applying the choice of law rules of the State of New York, or (y) is
contrary to the governing law provided in Sections 1-105(2), 5-116, 8-110 or
9-301 to 9-306 of the NYUCC, or (III) service of process, or (IV) waivers
of any rights to trial by jury;

 

(b)   relating to (I) indemnification, contribution
or exculpation in connection with violations of applicable laws, statutory
duties or public policy, or in connection 

 

6

 

with
willful, reckless or unlawful acts or gross negligence of the indemnified or
exculpated party or the party receiving contribution, or (II) exculpation
of any party in connection with its own negligence the enforcement of which a
court determines in the circumstances to be unfair or insufficiently explicit
or contrary to public policy;

 

(c)   specifying that provisions thereof may be modified
or waived only in writing;

 

(d)   that purports to give any person the power to
accelerate obligations, foreclose on collateral or require additional
collateral at will or without notice to the Obligors;

 

(e)   relating to payment of late charges, interest (or
discount or equivalent amounts), premium, “make-whole” payments, collection
costs or fees at a rate or in an amount, after or upon the maturity or
acceleration of the liabilities evidenced or secured thereby or after or during
the continuance of any default or other circumstance, or upon prepayment, that
a court would determine in the circumstances to be unreasonable, a penalty or a
forfeiture;

 

(f)    relating to any purported waiver, release or
variation of rights or other agreement to similar effect (all of the foregoing,
collectively, a “Waiver”) by any Obligor under any of the Financing Documents to
the extent limited by Sections 1-102(3), 5-103(c), 9-602 or 9-603 of the
NYUCC or other provisions of applicable law (including judicial decisions), or
to the extent that such a Waiver applies to a right, claim, duty, ground for
discharge or release of, or defense available to, an obligor generally or as a
guarantor or co-obligor or otherwise available as a matter of law (including
judicial decisions), except to the extent that such a Waiver is effective under
and is not prohibited by Sections 9-602 or 9-603 of the NYUCC or other
applicable law (including judicial decisions);

 

(g)   that purports to create a trust, power of attorney
or other fiduciary relationship;

 

(h)   specifying that any person purchasing a
participation from a Lender or other person may exercise set-off or similar
rights with respect to such participation or that a Lender or other person may
exercise set-off rights other than in accordance with applicable law;

 

(i)    that purports to limit the ability of any Obligor or
any other person to transfer any of its right, title or interest in or to any
collateral, to the extent contemplated by Section 9-401 of the NYUCC or
other applicable law regarding restraints on alienation;

 

(j)    relating to third party beneficiary rights of the
Agent, the Lenders or other person;

 

(k)   which is inconsistent with Article 5 of the
NYUCC;

 

7

 

(ii)           Section 9.20 [Judgment Currency] of the Credit
Agreement;

 

(iii)          the effect of any law of any jurisdiction other than
the State of New York wherein any party to the Financing Documents may be
located or wherein enforcement of any Financing Document may be sought that
limits the rates of interest legally chargeable or collectible;

 

(iv)          the right, title or interest of any Obligor (or the
power of any Obligor to transfer rights) in or to any collateral under the
Financing Documents or any other property; whether any property constitutes a
particular type of collateral under the DEUCC or NYUCC; or the validity or
effectiveness for any purpose of any such collateral or any other property;

 

(v)           (x) except as expressly stated in paragraphs 8
through 10 above, the creation, attachment, validity, binding effect,
enforceability or perfection of any security interest, mortgage, pledge, lien
or other encumbrance that may be created under any of the Financing Documents,
or (y) except as expressly stated in paragraph 10(b) above, the
priority or other effect of perfection or non-perfection of any security
interest created under any of the Financing Documents;

 

(vi)          the creation, attachment, validity, binding effect,
enforceability, perfection, priority or other effect of perfection or
non-perfection of any security interest in: (1) the proceeds of any
collateral other than in accordance with, and subject to the limitations set
forth in, Section 9-315 of the NYUCC, (2) goods which are accessions
to, or commingled or processed with, other goods other than in accordance with,
and subject to the limitations set forth in, Section 9-335 or 9-336 of the
NYUCC, (3) goods which are subject to a certificate-of-title statute, (4) consumer
goods, (5) commercial tort claims, (6)  rights to demand payment or
performance under a letter of credit, (7) commodity accounts or commodity
contracts, (8) as extracted collateral, (9) farm products, (10) goods
that are or are to become fixtures to the extent required to be perfected by
the filing of a fixture filing, (11) health care insurance receivables,
(12) manufactured homes, (13) standing timber or timber to be cut, (14) 
cooperative apartment interests, (15) any item of collateral that is
subject to restriction on or prohibition against transfer (except to the extent
limited by Sections 9-401, 9-406, 9-407, 9-408 or 9-409 of the NYUCC) contained
in an agreement, instrument, document or applicable law governing, evidencing
or otherwise relating to such item, or (16) any obligations of the United
States of America or any agency or instrumentality thereof;

 

(vii)         any filings or other actions required after the date
of this opinion to maintain the perfection, priority or other effect of
perfection of the security interests under the Financing Documents in any
collateral; and

 

(viii)        any agreement, instrument or other document referred
to, or incorporated by reference, in any of the Financing Documents, other than
the Financing Documents listed in this opinion letter.

 

8

 

(B)      Our opinions
are subject to (i) bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws relating to or affecting
creditors’ rights generally, (ii) general equitable principles (including,
without limitation, standards of materiality, good faith, fair dealing and
reasonableness, equitable defenses and limits on the availability of equitable
remedies), whether considered in a proceeding at law or in equity, and (iii) 
the qualification that certain provisions of the Financing Documents may be
unenforceable in whole or in part, but the inclusion of such provisions does
not affect the validity as against any Obligor of the Financing Documents as a
whole, and the Financing Documents and the laws of the State of New York
contain adequate provisions for enforcing payment of the obligations governed
or secured thereby, subject to the other qualifications contained in this
letter.

 

(C)      Provisions in a
guarantee (or equivalent) that provide that the guarantor’s liability
thereunder shall not be affected by actions or failures to act on the part of
the recipient of the guarantee or by modifications or waivers of provisions of
the guaranteed obligations might not be enforceable if such actions, failures
to act, modifications or waivers so change the essential nature of the terms
and conditions of the guaranteed obligations that, in effect, a new contract
has arisen between such recipient and the primary obligor on whose behalf the
guarantee was issued. We have assumed that (i) the obligations of
each Obligor under the Financing Documents are necessary or convenient to the
conduct, promotion or attainment of the business of each such Obligor and (ii) consideration
that is sufficient to support the agreements of each Obligor under the
Financing Documents has been received by each such Obligor.

 

(D)     We express no
opinions as to, and our opinions are subject to the effect, if any, of laws,
rules, regulations or orders promulgated, issued or administered by the United
States Food and Drug Administration, the United States Department of Health and
Human Services and other federal or state laws, rules, regulations and orders
that apply to the development, manufacturing, marketing, distribution or sale
of pharmaceuticals and medical devices.

 

The opinions expressed herein are limited to the
federal laws of the United States of America, the laws of the State of New
York, to the extent relevant to the opinions expressed in paragraphs 1, 2, 3
and 4 above, the Delaware General Corporation Law and the Delaware Limited
Liability Company Act, and, to the extent relevant to paragraph 9 above, the
DEUCC, each as currently in effect; and no opinion is expressed with respect to
any other laws or any effect that such other laws may have on the opinions
expressed herein.

 

Our opinions in paragraph 8 above are limited to Article 9
of the NYUCC, and our opinions in paragraphs 10 are limited to Articles 8
and 9 of the NYUCC, and, therefore, those opinions do not address (i) laws
of jurisdictions other than New York, and of New York except for
Articles 8 or 9, as the case may be, of the NYUCC, (ii) collateral of
a type not subject to Article 9 of the NYUCC, and (iii) except as
stated in paragraph 10 above, under the NYUCC what law governs perfection of
the security interests in the collateral addressed by this opinion letter.  Our opinions in paragraph 9 above are limited
to Article 9 of the DEUCC and, therefore, those opinions do not address (i) laws
of 

 

9

 

jurisdictions
other than Delaware, and of Delaware except for Article 9 of the DEUCC,
and (ii) collateral of a type not subject to Article 9 of the DEUCC,
and (iii) except as stated in paragraph 9 above, under the DEUCC what
law governs perfection of the security interests in the collateral addressed by
this opinion letter.

 

This opinion letter is limited to the matters stated
herein, and no opinion is implied or may be inferred beyond the opinions
expressly stated herein.  The opinions
expressed herein are given only as of the date hereof, and we undertake no
responsibility to update or supplement this opinion letter after the date
hereof for any reason.

 

The opinions expressed herein are solely for the
benefit of the Agent and the Lenders in connection with the Financing Documents
and may not be relied upon in any manner or used for any purpose by any other
person, and may not be quoted in whole or in part, without our prior written
consent.

 

Very truly yours,

 

/s/ Fried, Frank, Harris, Shriver &
Jacobson LLP

FRIED, FRANK, HARRIS,
SHRIVER & JACOBSON LLP

 

10

 

Exhibit A

DE Financing Statements

 

 

 

UCC FINANCING STATEMENT

FOLLOW INSTRUCTIONS (front
and back) CAREFULLY

 

	
  A.
  NAME & PHONE OF CONTACT AT FILER [optional]

  	
   

  
	
   

  	
   

  
	
  Joanne Kang

  	
  (212) 474-1000

  	
   

  
	
   

  	
   

  
	
  B.
  SEND ACKNOWLEDGMENT TO:   (Name and
  Address)

  	
   

  
	
   

  	
   

  
	
  Cravath,
  Swaine & Moore LLP

  825 Eighth Avenue

  Worldwide Plaza

  New York, NY 10019

   

  jkang@cravath.com

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  ABOVE SPACE IS FOR FILING OFFICE USE ONLY

  
			

 

 

	
  1. DEBTOR’S EXACT FULL
  LEGAL NAME - insert only one debtor name (1a or 1b) - do not
  abbreviate or combine names

  
	
   

  
	
   

  	
  1a. ORGANIZATION’S NAME

  IKARIA ACQUISITION INC.

  
	
  OR

  	
   

  
	
   

  	
  1b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
  6 ROUTE 173

  	
  CLINTON

  	
  NJ

  	
  08809

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1d. SEE INSTRUCTIONS

  	
  ADD’L INFO RE
  ORGANIZATION

  	
  1e. TYPE OF ORGANIZATION

   

  	
  1f. JURISDICTION OF
  ORGANIZATION

  	
  1g. ORGANIZATIONAL ID #,
  if any

  
	
   

  	
  DEBTOR

  	
  Corporation

  	
  Delaware

  	
   

  	
  o NONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. ADDITIONAL DEBTOR’S
  EXACT FULL LEGAL NAME - insert only one debtor name (2a or 2b) - do
  not abbreviate or combine names

  
	
   

  
	
   

  	
  2a. ORGANIZATION’S NAME

   

  
	
  OR

  	
   

  
	
   

  	
  2b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2d. SEE INSTRUCTIONS

  	
  ADD’L INFO RE
  ORGANIZATION

  	
  2e. TYPE OF ORGANIZATION

   

  	
  2f. JURISDICTION OF
  ORGANIZATION

  	
  2g. ORGANIZATIONAL ID #,
  if any

  
	
   

  	
  DEBTOR

  	
   

  	
   

  	
   

  	
  o NONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. SECURED PARTY’S NAME
  (or NAME of TOTAL ASSIGNEE of ASSIGNOR S/P) - insert only one secured
  party name (3a or 3b)

  
	
   

  
	
   

  	
  3a. ORGANIZATION’S NAME

  CREDIT SUISSE AG, AS
  COLLATERAL AGENT

  
	
  OR

  	
   

  
	
   

  	
  3b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
  11 MADISON AVENUE

  	
  NEW YORK

  	
  NY

  	
  10010

  	
  USA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

	
  4.
  This FINANCING
  STATEMENT covers the following collateral:

  
	
  ALL
  ASSETS.

  

 

 

	
  5. ALTERNATIVE DESIGNATION [if applicable]: o LESSEE/LESSOR o CONSIGNEE/CONSIGNOR o BAILEE/BAILOR o SELLER/BUYER o AG. LIEN o NON-UCC FILING

  
	
   

  
	
  6.

  	
  o

  	
  This
  FINANCING STATEMENT is to be filed [for record] (or recorded) in the REAL
  ESTATE RECORDS. Attach
  Addendum                                                    [if
  applicable]

  	
  7.

  	
  Check
  to REQUEST SEARCH REPORT(S) on Debtor(s) [ADDITIONAL FEE]                 [optional]

  	
  o All Debtors  o Debtor 1  o Debtor 2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  OPTIONAL
  FILER REFERENCE DATA

  	
   

  	
   

  	
  F # 274727

  
	
   

  	
  5865-713
  –– DE - Secretary of State

  	
   

  	
   

  	
  A # 406664

  

 

FILING OFFICE COPY — UCC FINANCING STATEMENT (FORM UCC1) (REV.05/22/02)

 

 

UCC FINANCING STATEMENT

FOLLOW INSTRUCTIONS (front
and back) CAREFULLY

 

	
  A.
  NAME & PHONE OF CONTACT AT FILER [optional]

  	
   

  
	
   

  	
   

  
	
  Joanne Kang

  	
  (212) 474-1000

  	
   

  
	
   

  	
   

  
	
  B.
  SEND ACKNOWLEDGMENT TO:   (Name and
  Address)

  	
   

  
	
   

  	
   

  
	
  Cravath,
  Swaine & Moore LLP

  825 Eighth Avenue

  Worldwide Plaza

  New York, NY 10019

   

  jkang@cravath.com

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  ABOVE SPACE IS FOR FILING OFFICE USE ONLY

  
			

 

 

	
  1. DEBTOR’S EXACT FULL
  LEGAL NAME - insert only one debtor name (1a or 1b) - do not
  abbreviate or combine names

  
	
   

  
	
   

  	
  1a. ORGANIZATION’S NAME

  IKARIA, INC.

  
	
  OR

  	
   

  
	
   

  	
  1b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
  6 ROUTE 173

  	
  CLINTON

  	
  NJ

  	
  08809

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1d. SEE INSTRUCTIONS

  	
  ADD’L INFO RE
  ORGANIZATION

  	
  1e. TYPE OF ORGANIZATION

   

  	
  1f. JURISDICTION OF
  ORGANIZATION

  	
  1g. ORGANIZATIONAL ID #,
  if any

  
	
   

  	
  DEBTOR

  	
  Corporation

  	
  Delaware

  	
   

  	
  o NONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. ADDITIONAL DEBTOR’S
  EXACT FULL LEGAL NAME - insert only one debtor name (2a or 2b) - do
  not abbreviate or combine names

  
	
   

  
	
   

  	
  2a. ORGANIZATION’S NAME

   

  
	
  OR

  	
   

  
	
   

  	
  2b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2d. SEE INSTRUCTIONS

  	
  ADD’L INFO RE
  ORGANIZATION

  	
  2e. TYPE OF ORGANIZATION

   

  	
  2f. JURISDICTION OF
  ORGANIZATION

  	
  2g. ORGANIZATIONAL ID #,
  if any

  
	
   

  	
  DEBTOR

  	
   

  	
   

  	
   

  	
  o NONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. SECURED PARTY’S NAME
  (or NAME of TOTAL ASSIGNEE of ASSIGNOR S/P) - insert only one secured
  party name (3a or 3b)

  
	
   

  
	
   

  	
  3a. ORGANIZATION’S NAME

  CREDIT SUISSE AG, AS
  COLLATERAL AGENT

  
	
  OR

  	
   

  
	
   

  	
  3b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
  11 MADISON AVENUE

  	
  NEW YORK

  	
  NY

  	
  10010

  	
  USA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

	
  4.
  This FINANCING STATEMENT
  covers the following collateral:

  
	
  ALL
  ASSETS.

  

 

 

	
  5. ALTERNATIVE DESIGNATION [if applicable]: o LESSEE/LESSOR o CONSIGNEE/CONSIGNOR o BAILEE/BAILOR o SELLER/BUYER o AG. LIEN o NON-UCC FILING

  
	
   

  
	
  6.

  	
  o

  	
  This
  FINANCING STATEMENT is to be filed [for record] (or recorded) in the REAL
  ESTATE RECORDS. Attach
  Addendum                                                    [if
  applicable]

  	
  7.

  	
  Check
  to REQUEST SEARCH REPORT(S) on Debtor(s) [ADDITIONAL
  FEE]                 [optional]

  	
  o All Debtors  o Debtor 1  o Debtor 2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  OPTIONAL
  FILER REFERENCE DATA

  	
   

  	
   

  	
  F # 274728

  
	
   

  	
  5865-713
  –– DE - Secretary of State

  	
   

  	
   

  	
  A # 406665

  

 

FILING
OFFICE COPY — UCC
FINANCING STATEMENT (FORM UCC1) (REV.05/22/02)

 

 

UCC FINANCING STATEMENT

FOLLOW INSTRUCTIONS (front
and back) CAREFULLY

 

	
  A.
  NAME & PHONE OF CONTACT AT FILER [optional]

  	
   

  
	
   

  	
   

  
	
  Joanne Kang

  	
  (212) 474-1000

  	
   

  
	
   

  	
   

  
	
  B.
  SEND ACKNOWLEDGMENT TO:   (Name and
  Address)

  	
   

  
	
   

  	
   

  
	
  Cravath,
  Swaine & Moore LLP

  825 Eighth Avenue

  Worldwide Plaza

  New York, NY 10019

   

  jkang@cravath.com

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  ABOVE SPACE IS FOR FILING OFFICE USE ONLY

  
			

 

 

	
  1. DEBTOR’S EXACT FULL
  LEGAL NAME - insert only one debtor name (1a or 1b) - do not
  abbreviate or combine names

  
	
   

  
	
   

  	
  1a. ORGANIZATION’S NAME

  IKARIA RESEARCH, INC.

  
	
  OR

  	
   

  
	
   

  	
  1b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
  1616 EASTLAKE AVENUE
  EAST, SUITE 340

  	
  SEATTLE

  	
  WA

  	
  98102

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1d. SEE INSTRUCTIONS

  	
  ADD’L INFO RE
  ORGANIZATION

  	
  1e. TYPE OF ORGANIZATION

   

  	
  1f. JURISDICTION OF
  ORGANIZATION

  	
  1g. ORGANIZATIONAL ID #,
  if any

  
	
   

  	
  DEBTOR

  	
  Corporation

  	
  Delaware

  	
   

  	
  o NONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. ADDITIONAL DEBTOR’S
  EXACT FULL LEGAL NAME - insert only one debtor name (2a or 2b) - do
  not abbreviate or combine names

  
	
   

  
	
   

  	
  2a. ORGANIZATION’S NAME

   

  
	
  OR

  	
   

  
	
   

  	
  2b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2d. SEE INSTRUCTIONS

  	
  ADD’L INFO RE
  ORGANIZATION

  	
  2e. TYPE OF ORGANIZATION

   

  	
  2f. JURISDICTION OF
  ORGANIZATION

  	
  2g. ORGANIZATIONAL ID #,
  if any

  
	
   

  	
  DEBTOR

  	
   

  	
   

  	
   

  	
  o NONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. SECURED PARTY’S NAME
  (or NAME of TOTAL ASSIGNEE of ASSIGNOR S/P) - insert only one secured
  party name (3a or 3b)

  
	
   

  
	
   

  	
  3a. ORGANIZATION’S NAME

  CREDIT SUISSE AG, AS
  COLLATERAL AGENT

  
	
  OR

  	
   

  
	
   

  	
  3b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
  11 MADISON AVENUE

  	
  NEW YORK

  	
  NY

  	
  10010

  	
  USA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

	
  4.
  This FINANCING
  STATEMENT covers the following collateral:

  
	
  ALL
  ASSETS.

  

 

 

	
  5. ALTERNATIVE DESIGNATION [if applicable]: o LESSEE/LESSOR o CONSIGNEE/CONSIGNOR o BAILEE/BAILOR o SELLER/BUYER o AG. LIEN o NON-UCC FILING

  
	
   

  
	
  6.

  	
  o

  	
  This
  FINANCING STATEMENT is to be filed [for record] (or recorded) in the REAL
  ESTATE RECORDS. Attach
  Addendum                                                    [if
  applicable]

  	
  7.

  	
  Check
  to REQUEST SEARCH REPORT(S) on Debtor(s) [ADDITIONAL
  FEE]                 [optional]

  	
  o All Debtors  o Debtor 1  o Debtor 2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  OPTIONAL
  FILER REFERENCE DATA

  	
   

  	
   

  	
  F # 274729

  
	
   

  	
  5865-713
  –– DE - Secretary of State

  	
   

  	
   

  	
  A # 406666

  

 

FILING OFFICE COPY — UCC FINANCING STATEMENT (FORM UCC1) (REV.05/22/02)

 

 

 

UCC FINANCING STATEMENT

FOLLOW INSTRUCTIONS (front
and back) CAREFULLY

 

	
  A.
  NAME & PHONE OF CONTACT AT FILER [optional]

  	
   

  
	
   

  	
   

  
	
  Joanne
  Kang

  	
  (212) 474-1000

  	
   

  
	
   

  	
   

  
	
  B.
  SEND ACKNOWLEDGMENT TO:   (Name and
  Address)

  	
   

  
	
   

  	
   

  
	
  Cravath,
  Swaine & Moore LLP

  825 Eighth Avenue

  Worldwide Plaza

  New York, NY 10019

   

  jkang@cravath.com

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  ABOVE SPACE IS FOR FILING OFFICE USE ONLY

  
			

 

 

	
  1. DEBTOR’S EXACT FULL
  LEGAL NAME - insert only one debtor name (1a or 1b) - do not
  abbreviate or combine names

  
	
   

  
	
   

  	
  1a. ORGANIZATION’S NAME

  IKARIA INTERNATIONAL,
  INC.

  
	
  OR

  	
   

  
	
   

  	
  1b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
  6 ROUTE 173

  	
  CLINTON

  	
  NJ

  	
  08809

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1d. SEE INSTRUCTIONS

  	
  ADD’L INFO RE
  ORGANIZATION

  	
  1e. TYPE OF ORGANIZATION

   

  	
  1f. JURISDICTION OF
  ORGANIZATION

  	
  1g. ORGANIZATIONAL ID #,
  if any

  
	
   

  	
  DEBTOR

  	
  Corporation

  	
  Delaware

  	
   

  	
  o NONE

  
	
   

  
	
  2. ADDITIONAL DEBTOR’S
  EXACT FULL LEGAL NAME - insert only one debtor name (2a or 2b) - do
  not abbreviate or combine names

  
	
   

  
	
   

  	
  2a. ORGANIZATION’S NAME

   

  
	
  OR

  	
   

  
	
   

  	
  2b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2d. SEE INSTRUCTIONS

  	
  ADD’L INFO RE
  ORGANIZATION

  	
  2e. TYPE OF ORGANIZATION

   

  	
  2f. JURISDICTION OF
  ORGANIZATION

  	
  2g. ORGANIZATIONAL ID #,
  if any

  
	
   

  	
  DEBTOR

  	
   

  	
   

  	
   

  	
  o NONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. SECURED PARTY’S NAME
  (or NAME of TOTAL ASSIGNEE of ASSIGNOR S/P) - insert only one secured
  party name (3a or 3b)

  
	
   

  
	
   

  	
  3a. ORGANIZATION’S NAME

  CREDIT SUISSE AG, AS
  COLLATERAL AGENT

  
	
  OR

  	
   

  
	
   

  	
  3b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
  11 MADISON AVENUE

  	
  NEW YORK

  	
  NY

  	
  10010

  	
  USA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

	
  4.
  This FINANCING
  STATEMENT covers the following collateral:

  
	
  ALL
  ASSETS.

  

 

 

	
  5. ALTERNATIVE DESIGNATION [if applicable]: o LESSEE/LESSOR o CONSIGNEE/CONSIGNOR o BAILEE/BAILOR o SELLER/BUYER o AG. LIEN o NON-UCC FILING

  
	
   

  
	
  6.

  	
  o

  	
  This
  FINANCING STATEMENT is to be filed [for record] (or recorded) in the REAL
  ESTATE RECORDS. Attach
  Addendum                                                    [if
  applicable]

  	
  7.

  	
  Check
  to REQUEST SEARCH REPORT(S) on Debtor(s) [ADDITIONAL
  FEE]                 [optional]

  	
  o All Debtors   o Debtor
  1   o Debtor 2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  OPTIONAL
  FILER REFERENCE DATA

  	
   

  	
   

  	
  F#274730

  
	
   

  	
  5865-713
  –– DE - Secretary of State

  	
   

  	
   

  	
  A#406667

  

 

FILING
OFFICE COPY — UCC
FINANCING STATEMENT (FORM UCC1) (REV. 05/22/02)

 

 

UCC FINANCING STATEMENT

FOLLOW INSTRUCTIONS (front
and back) CAREFULLY

 

	
  A.
  NAME & PHONE OF CONTACT AT FILER [optional]

  	
   

  
	
   

  	
   

  
	
  Joanne
  Kang

  	
  (212) 474-1000

  	
   

  
	
   

  	
   

  
	
  B. SEND
  ACKNOWLEDGMENT TO:   (Name and Address)

  	
   

  
	
   

  	
   

  
	
  Cravath,
  Swaine & Moore LLP

  825 Eighth Avenue

  Worldwide Plaza

  New York, NY 10019

   

  jkang@cravath.com

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  ABOVE SPACE IS FOR FILING OFFICE USE ONLY

  
			

 

 

	
  1. DEBTOR’S EXACT FULL
  LEGAL NAME - insert only one debtor name (1a or 1b) - do not
  abbreviate or combine names

  
	
   

  
	
   

  	
  1a. ORGANIZATION’S NAME

  IKARIA THERAPEUTICS LLC

  
	
  OR

  	
   

  
	
   

  	
  1b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
  6 ROUTE 173

  	
  CLINTON

  	
  NJ

  	
  08809

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1d. SEE INSTRUCTIONS

  	
  ADD’L INFO RE
  ORGANIZATION

  	
  1e. TYPE OF ORGANIZATION

   

  	
  1f. JURISDICTION OF
  ORGANIZATION

  	
  1g. ORGANIZATIONAL ID #,
  if any

  
	
   

  	
  DEBTOR

  	
  LLC

  	
  Delaware

  	
   

  	
  o NONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. ADDITIONAL DEBTOR’S
  EXACT FULL LEGAL NAME - insert only one debtor name (2a or 2b) - do
  not abbreviate or combine names

  
	
   

  
	
   

  	
  2a. ORGANIZATION’S NAME

   

  
	
  OR

  	
   

  
	
   

  	
  2b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2d. SEE INSTRUCTIONS

  	
  ADD’L INFO RE
  ORGANIZATION

  	
  2e. TYPE OF ORGANIZATION

   

  	
  2f. JURISDICTION OF
  ORGANIZATION

  	
  2g. ORGANIZATIONAL ID #,
  if any

  
	
   

  	
  DEBTOR

  	
   

  	
   

  	
   

  	
  o NONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. SECURED PARTY’S NAME
  (or NAME of TOTAL ASSIGNEE of ASSIGNOR S/P) - insert only one secured
  party name (3a or 3b)

  
	
   

  
	
   

  	
  3a. ORGANIZATION’S NAME

  CREDIT SUISSE AG, AS
  COLLATERAL AGENT

  
	
  OR

  	
   

  
	
   

  	
  3b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
  11 MADISON AVENUE

  	
  NEW YORK

  	
  NY

  	
  10010

  	
  USA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

	
  4.
  This FINANCING STATEMENT
  covers the following collateral:

  
	
  ALL
  ASSETS.

  

 

 

	
  5. ALTERNATIVE DESIGNATION [if applicable]: o LESSEE/LESSOR o CONSIGNEE/CONSIGNOR o BAILEE/BAILOR o SELLER/BUYER o AG. LIEN o NON-UCC FILING

  
	
   

  
	
  6.

  	
  o

  	
  This
  FINANCING STATEMENT is to be filed [for record] (or recorded) in the REAL
  ESTATE RECORDS. Attach
  Addendum                                                    [if
  applicable]

  	
  7.

  	
  Check
  to REQUEST SEARCH REPORT(S) on Debtor(s) [ADDITIONAL
  FEE]                 [optional]

  	
  o All Debtors   o Debtor
  1   o Debtor 2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  OPTIONAL
  FILER REFERENCE DATA

  	
   

  	
   

  	
  F#274734

  
	
   

  	
  5865-713
  –– DE - Secretary of State

  	
   

  	
   

  	
  A#406671

  

 

FILING
OFFICE COPY — UCC
FINANCING STATEMENT (FORM UCC1) (REV. 05/22/02)

 

 

UCC FINANCING STATEMENT

FOLLOW INSTRUCTIONS (front
and back) CAREFULLY

 

	
  A.
  NAME & PHONE OF CONTACT AT FILER [optional]

  	
   

  
	
   

  	
   

  
	
  Joanne
  Kang

  	
  (212) 474-1000

  	
   

  
	
   

  	
   

  
	
  B.
  SEND ACKNOWLEDGMENT TO:   (Name and
  Address)

  	
   

  
	
   

  	
   

  
	
  Cravath,
  Swaine & Moore LLP

  825 Eighth Avenue

  Worldwide Plaza

  New York, NY 10019

   

  jkang@cravath.com

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  ABOVE SPACE IS FOR FILING OFFICE USE ONLY

  
			

 

 

	
  1. DEBTOR’S EXACT FULL
  LEGAL NAME - insert only one debtor name (1a or 1b) - do not
  abbreviate or combine names

  
	
   

  
	
   

  	
  1a. ORGANIZATION’S NAME

  IKARIA DEVELOPMENT
  SUBSIDIARY ONE LLC

  
	
  OR

  	
   

  
	
   

  	
  1b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
  6 ROUTE 173

  	
  CLINTON

  	
  NJ

  	
  08809

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1d. SEE INSTRUCTIONS

  	
  ADD’L INFO RE
  ORGANIZATION

  	
  1e. TYPE OF ORGANIZATION

   

  	
  1f. JURISDICTION OF
  ORGANIZATION

  	
  1g. ORGANIZATIONAL ID #,
  if any

  
	
   

  	
  DEBTOR

  	
  LLC

  	
  Delaware

  	
   

  	
  o NONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. ADDITIONAL DEBTOR’S
  EXACT FULL LEGAL NAME - insert only one debtor name (2a or 2b) - do
  not abbreviate or combine names

  
	
   

  
	
   

  	
  2a. ORGANIZATION’S NAME

   

  
	
  OR

  	
   

  
	
   

  	
  2b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2d. SEE INSTRUCTIONS

  	
  ADD’L INFO RE
  ORGANIZATION

  	
  2e. TYPE OF ORGANIZATION

   

  	
  2f. JURISDICTION OF
  ORGANIZATION

  	
  2g. ORGANIZATIONAL ID #,
  if any

  
	
   

  	
  DEBTOR

  	
   

  	
   

  	
   

  	
  o NONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. SECURED PARTY’S NAME
  (or NAME of TOTAL ASSIGNEE of ASSIGNOR S/P) - insert only one secured
  party name (3a or 3b)

  
	
   

  
	
   

  	
  3a. ORGANIZATION’S NAME

  CREDIT SUISSE AG, AS
  COLLATERAL AGENT

  
	
  OR

  	
   

  
	
   

  	
  3b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
  11 MADISON AVENUE

  	
  NEW YORK

  	
  NY

  	
  10010

  	
  USA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

	
  4.
  This FINANCING
  STATEMENT covers the following collateral:

  
	
  ALL
  ASSETS.

  

 

 

	
  5. ALTERNATIVE DESIGNATION [if applicable]: o LESSEE/LESSOR o CONSIGNEE/CONSIGNOR o BAILEE/BAILOR o SELLER/BUYER o AG. LIEN o NON-UCC FILING

  
	
   

  
	
  6.

  	
  o

  	
  This
  FINANCING STATEMENT is to be filed [for record] (or recorded) in the REAL
  ESTATE RECORDS. Attach
  Addendum                                                    [if
  applicable]

  	
  7.

  	
  Check
  to REQUEST SEARCH REPORT(S) on Debtor(s) [ADDITIONAL
  FEE]                 [optional]

  	
  o All Debtors   o Debtor
  1   o Debtor 2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  OPTIONAL
  FILER REFERENCE DATA

  	
   

  	
   

  	
  F#274731

  
	
   

  	
  5865-713
  –– DE - Secretary of State

  	
   

  	
   

  	
  A#406668

  

 

FILING
OFFICE COPY — UCC
FINANCING STATEMENT (FORM UCC1) (REV. 05/22/02)

 

 

UCC FINANCING STATEMENT

FOLLOW INSTRUCTIONS (front
and back) CAREFULLY

 

	
  A.
  NAME & PHONE OF CONTACT AT FILER [optional]

  	
   

  
	
   

  	
   

  
	
  Joanne
  Kang

  	
  (212) 474-1000

  	
   

  
	
   

  	
   

  
	
  B.
  SEND ACKNOWLEDGMENT TO:   (Name and
  Address)

  	
   

  
	
   

  	
   

  
	
  Cravath,
  Swaine & Moore LLP

  825 Eighth Avenue

  Worldwide Plaza

  New York, NY 10019

   

  jkang@cravath.com

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  ABOVE SPACE IS FOR FILING OFFICE USE ONLY

  
			

 

 

	
  1. DEBTOR’S EXACT FULL
  LEGAL NAME - insert only one debtor name (1a or 1b) - do not
  abbreviate or combine names

  
	
   

  
	
   

  	
  1a. ORGANIZATION’S NAME

  IKARIA DEVELOPMENT
  SUBSIDIARY TWO LLC

  
	
  OR

  	
   

  
	
   

  	
  1b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
  6 ROUTE 173

  	
  CLINTON

  	
  NJ

  	
  08809

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1d. SEE INSTRUCTIONS

  	
  ADD’L INFO RE ORGANIZATION

  	
  1e. TYPE OF ORGANIZATION

   

  	
  1f. JURISDICTION OF
  ORGANIZATION

  	
  1g. ORGANIZATIONAL ID #,
  if any

  
	
   

  	
  DEBTOR

  	
  LLC

  	
  Delaware

  	
   

  	
  o NONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. ADDITIONAL DEBTOR’S
  EXACT FULL LEGAL NAME - insert only one debtor name (2a or 2b) - do
  not abbreviate or combine names

  
	
   

  
	
   

  	
  2a. ORGANIZATION’S NAME

   

  
	
  OR

  	
   

  
	
   

  	
  2b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2d. SEE INSTRUCTIONS

  	
  ADD’L INFO RE
  ORGANIZATION

  	
  2e. TYPE OF ORGANIZATION

   

  	
  2f. JURISDICTION OF
  ORGANIZATION

  	
  2g. ORGANIZATIONAL ID #,
  if any

  
	
   

  	
  DEBTOR

  	
   

  	
   

  	
   

  	
  o NONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. SECURED PARTY’S NAME
  (or NAME of TOTAL ASSIGNEE of ASSIGNOR S/P) - insert only one secured
  party name (3a or 3b)

  
	
   

  
	
   

  	
  3a. ORGANIZATION’S NAME

  CREDIT SUISSE AG, AS
  COLLATERAL AGENT

  
	
  OR

  	
   

  
	
   

  	
  3b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
  11 MADISON AVENUE

  	
  NEW YORK

  	
  NY

  	
  10010

  	
  USA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

	
  4.
  This FINANCING
  STATEMENT covers the following collateral:

  
	
  ALL
  ASSETS.

  

 

 

	
  5. ALTERNATIVE DESIGNATION [if applicable]: o LESSEE/LESSOR o CONSIGNEE/CONSIGNOR o BAILEE/BAILOR o SELLER/BUYER o AG. LIEN o NON-UCC FILING

  
	
   

  
	
  6.

  	
  o

  	
  This
  FINANCING STATEMENT is to be filed [for record] (or recorded) in the REAL
  ESTATE RECORDS. Attach Addendum                                                    [if
  applicable]

  	
  7.

  	
  Check
  to REQUEST SEARCH REPORT(S) on Debtor(s) [ADDITIONAL
  FEE]                 [optional]

  	
  o All Debtors   o Debtor
  1   o Debtor 2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  OPTIONAL
  FILER REFERENCE DATA

  	
   

  	
   

  	
  F#274732

  
	
   

  	
  5865-713
  –– DE - Secretary of State

  	
   

  	
   

  	
  A#406669

  

 

FILING
OFFICE COPY — UCC
FINANCING STATEMENT (FORM UCC1) (REV. 05/22/02)

 

 

UCC FINANCING STATEMENT

FOLLOW INSTRUCTIONS (front
and back) CAREFULLY

 

	
  A.
  NAME & PHONE OF CONTACT AT FILER [optional]

  	
   

  
	
   

  	
   

  
	
  Joanne
  Kang

  	
  (212) 474-1000

  	
   

  
	
   

  	
   

  
	
  B.
  SEND ACKNOWLEDGMENT TO:   (Name and
  Address)

  	
   

  
	
   

  	
   

  
	
  Cravath,
  Swaine & Moore LLP

  825 Eighth Avenue

  Worldwide Plaza

  New York, NY 10019

   

  jkang@cravath.com

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  ABOVE SPACE IS FOR FILING OFFICE USE ONLY

  
			

 

 

	
  1. DEBTOR’S EXACT FULL
  LEGAL NAME - insert only one debtor name (1a or 1b) - do not
  abbreviate or combine names

  
	
   

  
	
   

  	
  1a. ORGANIZATION’S NAME

  INO THERAPEUTICS LLC

  
	
  OR

  	
   

  
	
   

  	
  1b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
  6 ROUTE 173

  	
  CLINTON

  	
  NJ

  	
  08809

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1d. SEE INSTRUCTIONS

  	
  ADD’L INFO RE
  ORGANIZATION

  	
  1e. TYPE OF ORGANIZATION

   

  	
  1f. JURISDICTION OF
  ORGANIZATION

  	
  1g. ORGANIZATIONAL ID #,
  if any

  
	
   

  	
  DEBTOR

  	
  LLC

  	
  Delaware

  	
   

  	
  o NONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. ADDITIONAL DEBTOR’S
  EXACT FULL LEGAL NAME - insert only one debtor name (2a or 2b) - do
  not abbreviate or combine names

  
	
   

  
	
   

  	
  2a. ORGANIZATION’S NAME

   

  
	
  OR

  	
   

  
	
   

  	
  2b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2d. SEE INSTRUCTIONS

  	
  ADD’L INFO RE
  ORGANIZATION

  	
  2e. TYPE OF ORGANIZATION

   

  	
  2f. JURISDICTION OF
  ORGANIZATION

  	
  2g. ORGANIZATIONAL ID #,
  if any

  
	
   

  	
  DEBTOR

  	
   

  	
   

  	
   

  	
  o NONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. SECURED PARTY’S NAME
  (or NAME of TOTAL ASSIGNEE of ASSIGNOR S/P) - insert only one secured
  party name (3a or 3b)

  
	
   

  
	
   

  	
  3a. ORGANIZATION’S NAME

  CREDIT SUISSE AG, AS
  COLLATERAL AGENT

  
	
  OR

  	
   

  
	
   

  	
  3b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
  11 MADISON AVENUE

  	
  NEW YORK

  	
  NY

  	
  10010

  	
  USA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

	
  4.
  This FINANCING
  STATEMENT covers the following collateral:

  
	
  ALL
  ASSETS.

  

 

 

	
  5. ALTERNATIVE DESIGNATION [if applicable]: o LESSEE/LESSOR o CONSIGNEE/CONSIGNOR o BAILEE/BAILOR o SELLER/BUYER o AG. LIEN o NON-UCC FILING

  
	
   

  
	
  6.

  	
  o

  	
  This
  FINANCING STATEMENT is to be filed [for record] (or recorded) in the REAL
  ESTATE RECORDS. Attach
  Addendum                                                    [if
  applicable]

  	
  7.

  	
  Check
  to REQUEST SEARCH REPORT(S) on Debtor(s) [ADDITIONAL
  FEE]                 [optional]

  	
  o All Debtors   o Debtor
  1   o Debtor 2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  OPTIONAL
  FILER REFERENCE DATA

  	
   

  	
   

  	
  F#274733

  
	
   

  	
  5865-713
  –– DE - Secretary of State

  	
   

  	
   

  	
  A#406670

  

 

FILING
OFFICE COPY — UCC
FINANCING STATEMENT (FORM UCC1) (REV. 05/22/02)

 

 

Exhibit B

Officer’s Certificate

 

 

Execution Version

 

IKARIA ACQUISITION INC.

IKARIA, INC.

IKARIA RESEARCH, INC.

IKARIA INTERNATIONAL, INC.

IKARIA THERAPEUTICS LLC

IKARIA DEVELOPMENT SUBSIDIARY ONE LLC

IKARIA DEVELOPMENT SUBSIDIARY TWO LLC

INO THERAPEUTICS LLC

 

May 14, 2010

 

OFFICER’S CERTIFICATE

 

The undersigned, officers of
(i) Ikaria Acquisition Inc., a Delaware corporation (“Acquisition”), (ii) Ikaria, Inc.
(f/k/a Ikaria Holdings, Inc.), a Delaware corporation (“Holdings”), (iii) Ikaria
Research, Inc. (f/k/a Ikaria, Inc.), a Delaware corporation (“Research”),
(iv) Ikaria International, Inc., a Delaware corporation (“International”),
(v) Ikaria Therapeutics LLC, a Delaware limited liability company (“Therapeutics”),
(vi) Ikaria Development Subsidiary One LLC, a Delaware limited liability
company (“Development One”), (vii) Ikaria Development Subsidiary Two LLC,
a Delaware limited liability company (“Development Two”), and (viii) INO
Therapeutics LLC, a Delaware limited liability company (“INO”) (each an “Obligor”
and collectively the “Obligors”), hereby certify, in connection with (a) the
Credit Agreement, of even date herewith (the “Credit Agreement”), by and among
Holdings, Acquisition, the Lenders party thereto and Credit Suisse AG, as the
Administrative Agent and Collateral Agent, and (b) the opinion of Fried,
Frank, Harris, Shriver & Jacobson LLP delivered in connection
therewith (capitalized terms used herein and defined either in such opinion or
the Credit Agreement, as applicable, shall have such defined meanings when used
herein unless otherwise defined herein), as follows:

 

1.                                       There are no
court decrees or orders (i) to which any of the Obligors is a party or (ii) that
are otherwise binding upon or applicable to any of the Obligors or any of the
assets or property of any of the Obligors.

 

2.                                       There are no
contracts or agreements relating to Indebtedness to which any Obligor is a
party (other than the Loan Documents) for which breach, non-performance,
cancellation, or failure to renew could reasonably be expected to have a
Material Adverse Effect.

 

3.                                       There are no
actions, suits or proceedings pending or threatened against any of the Obligors
which involve the Documents or the transactions contemplated by the Documents.

 

4.                                       Each of the
Obligors (i) does not hold itself out as being engaged primarily, and does
not propose to engage primarily, in the business of investing, reinvesting or
trading in securities, (ii) is not engaged and does not propose to engage
in the business of issuing face-amount certificates of the installment type and
has not been engaged in such business or have any such certificates
outstanding, (iii) is

 

 

not
engaged and does not propose to engage in the business of investing,
reinvesting, owning, holding, or trading in securities, and does not own or
propose to acquire investment securities (other than securities issued by
majority owned subsidiaries of the owner) having a value exceeding 40 per
centum of the value of such Obligor’s total assets (exclusive of government
securities and cash items) and (iv) is primarily engaged in, directly or
through a wholly-owned subsidiary or subsidiaries, in a business other than
that of investing, reinvesting, owning, holding or trading in securities.

 

5.                                       Less than 25
percent of the assets of each of the Obligors individually and on a
consolidated basis consists of Margin Stock (as such term is defined in
regulation U of the Board of Governors of the Federal Reserve System).

 

6.                                       To the
knowledge of the undersigned, (i) the Obligors do not engage or propose to
engage in any industry, business or activity, or own property or assets, that
cause or would cause them to be subject to special, local, state or federal
regulation not applicable to business corporations or limited liability
companies generally, other than laws, rules, regulations or orders promulgated,
issued or administered by the United States Food and Drug Administration, the
United States Department of Health and Human Services and other federal or
state laws, rules, regulations and orders that apply to the development,
manufacturing, marketing, distribution or sale of pharmaceuticals and medical
devices (collectively, the “Drug Regulations”), and (ii) none of such Drug
Regulations regulate, limit or qualify in any way the right of the Obligors to
borrow money, to guaranty the obligations of the Obligors or to grant a
security interest or other Lien in any or all of the Obligors’ assets.

 

7.                                       Fried, Frank,
Harris, Shriver & Jacobson LLP may rely upon the accuracy of the
representations, warranties and certifications of the Obligors contained in the
Loan Documents and in all documents delivered by Obligors in connection
therewith.

 

 

IN
WITNESS WHEREOF, the undersigned have executed this  certificate on behalf of each Obligor as of the date first
above written.

 

	
   

  	
  IKARIA ACQUISITION INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel Tassé

  
	
   

  	
  Name:

  	
  Daniel Tassé

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  IKARIA RESEARCH INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel Tassé

  
	
   

  	
  Name:

  	
  Daniel Tassé

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  IKARIA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel Tassé

  
	
   

  	
  Name:

  	
  Daniel Tassé

  
	
   

  	
  Title:

  	
  Chairman & CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  IKARIA INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel Tassé

  
	
   

  	
  Name:

  	
  Daniel Tassé

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  IKARIA THERAPEUTICS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel Tassé

  
	
   

  	
  Name:

  	
  Daniel Tassé

  
	
   

  	
  Title:

  	
  President

  

 

[Signature
Page to Opinion Officer’s Certificate]

 

 

	
   

  	
  IKARIA DEVELOPMENT SUBSIDIARY ONE LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel Tassé

  
	
   

  	
  Name:

  	
  Daniel Tassé

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  IKARIA DEVELOPMENT SUBSIDIARY TWO LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel Tassé

  
	
   

  	
  Name:

  	
  Daniel Tassé

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INO THERAPEUTICS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel Tassé

  
	
   

  	
  Name:

  	
  Daniel Tassé

  
	
   

  	
  Title:

  	
  President & CEO

  

 

[Signature
Page to Opinion Officer’s Certificate]

 

 

 

May 14, 2010

 

Credit
Suisse AG,

as
Administrative Agent, Collateral Agent

and
Issuing Bank

Eleven
Madison Avenue

New
York, NY 10010

 

The
Lenders party to the Credit

Agreement
referred to below (all of

the
Addressees, collectively, the

“Lender Parties” and, individually, a “Lender Party”)

 

Ladies
and Gentlemen:

 

We have acted as special counsel in the State of Louisiana (“Louisiana”)  to INO Therapeutics LLC, a
Delaware limited liability company (the “Mortgagor”),  and Ikaria Acquisition, Inc., a Delaware corporation
(the “Borrower”),  and Ikaria Holdings, Inc., a
Delaware corporation (“Holdings”)  (Holdings, Mortgagor, and the
Borrower being collectively, the “Loan Parties”), in connection with the execution and delivery of,
and the consummation of the transactions contemplated by, the Credit Agreement
(the “Credit
Agreement”)  dated
as of even date herewith, among Holdings, the Borrower, the Lenders and Credit
Suisse AG, as administrative agent (in such capacity, the “Administrative
Agent”), collateral agent (in such capacity, the “Collateral
Agent”)  and
issuing bank (in such capacity, the “Issuing Bank”). This opinion is delivered pursuant to Section 4.02(a) of
the Credit Agreement. Capitalized terms used but not defined herein shall have
the meanings assigned to such terms in the Credit Agreement.

 

1.                                       Documents
Reviewed

 

In connection with this opinion letter, we have examined executed
originals or copies, certified or otherwise identified to our satisfaction, of
such documents as we have deemed necessary or appropriate as a basis for the
opinions set forth herein, including, without limitation, the following (each
of which are dated of even date herewith unless otherwise indicated):

 

1.1                                           the Credit
Agreement;

 

1.2                                           the Guarantee
and Collateral Agreement;

 

1.3                                           the Mortgage,
Assignment of Leases and Rents, and Security Agreement by Mortgagor in favor of
the Collateral Agent for the benefit of the Secured Parties (as defined

 

JONES, WALKER, WAECHTER, POITEVENT, CARRÈRE & DENÈGRE L.L.P.

 

201 ST. CHARLES
AVENUE · NEW ORLEANS, LOUISIANA 70170-5100 ·
504-582-8000 · FAX 504-582-8583 · E-MAIL info@joneswalker.com ·
www.joneswalker.com

ALABAMA      ARIZONA      DISTRICT OF COLUMBIA      FLORIDA      LOUISIANA      TEXAS

 

 

therein)
delivered with respect to the Mortgagor’s property in West Baton Rouge Parish,
Louisiana (the “Mortgage”); and

 

1.4                                 the UCC
financing statement relating to Louisiana fixtures, a copy of which is attached
hereto as Exhibit A (the “Fixture Filing”).

 

Items 1.1 through 1.4 are hereinafter collectively referred to as the “Documents”.

 

In addition, we have examined originals or copies, certified or
otherwise identified to our satisfaction, of such records, agreements,
instruments and other documents, and have made such other investigations, as we
have deemed necessary for the purpose of this opinion.

 

References in this opinion to the “UCC”  shall mean the Uniform Commercial
Code as in effect on the date hereof in Louisiana.

 

2.                                     Assumptions

 

In rendering this opinion to you, we have assumed:

 

2.1                                  the genuineness of all
signatures on each of the documents examined by us;

 

2.2                                  the legal capacity as
natural persons of all natural persons who have signed documents examined by
us;

 

2.3                                  the authenticity of all
documents submitted to us as originals, the conformity to original documents of
all documents submitted to us as certified or photostatic copies and the
authenticity of the originals of all such copies;

 

2.4                                  the factual accuracy and
completeness of (a) all records made available to us by Borrower, (b) all
certificates submitted to us, and (c) each of the representations and
warranties made in the Documents by each of the parties thereto;

 

2.5                                  the Documents accurately
reflect the complete understanding of the parties with respect to the
transactions contemplated thereby and the rights and obligations of the parties
thereunder and there are no agreements or understandings between or among any
of the parties to the Documents that would modify, release, terminate,
subordinate or delay the attachment of the security interests and liens granted
thereunder;

 

2.6                                  that each party to the
Documents is in good standing under its jurisdiction of organization and has
all requisite power and authority to enter into and perform its respective
obligations in connection with the transactions described in the Documents to
which it is a party;

 

2.7                                  that the Documents have been
duly authorized, executed and delivered by all parties thereto;

 

2.8                                  that the Documents (other
than the Mortgage), and the transactions evidenced thereby, are valid, binding
and enforceable against all parties thereto under the laws of the State of New
York;

 

2

 

2.9                                  with respect to any
provisions of the Mortgage which are stated to be governed by the laws of a
state other than Louisiana, the Mortgage is the valid, legal, binding and
enforceable obligation of the parties thereto under the chosen law;

 

2.10                            the Mortgagor has received
adequate consideration in connection with the delivery of the Mortgage;

 

2.11                            the Obligations (as defined
in the Mortgage) exist and constitute the legal, valid, and binding obligation
of all obligors thereunder, and are enforceable in accordance with their terms;

 

2.12                            the execution, delivery and
performance of the Mortgage by the Mortgagor (a) did not require any
authorization, approval or consent of, or filing with, any governmental or
regulatory authority or agency outside of Louisiana, (b) did not
contravene any provision of its organizational documents, and (c) did not
contravene or constitute a breach of or default under any agreement, judgment,
injunction, order, decree or other instrument binding upon it;

 

2.13                            the Land (as defined in the
Mortgage) exists and is located in West Baton Rouge Parish, Louisiana; the
Mortgage accurately describes all of the Land encumbered thereby; and the
Mortgagor has record title to the Land and immovable improvements located
thereon as described in the Mortgage;

 

2.14                            except as otherwise set
forth in the Mortgage, the Mortgagor owns the Mortgaged Property (as defined in
the Mortgage);

 

2.15                            the names, addresses, and
the last four digits of the federal taxpayer identification numbers of each
party to the Mortgage are correctly set forth in the Mortgage;

 

2.16                            the fixtures (as defined in
the UCC, the “Fixtures”)
exist, are located on the Land, and the Mortgagor has rights
in the Fixtures;

 

2.17                            the names and addresses of
the debtor and secured party are correctly set forth in the Fixture Filing;

 

2.18                            the Mortgagor’s organization
identification number is 3724403;

 

2.19                            the Fixture Filing will be
duly filed, indexed and recorded in the appropriate public records, as
described in the opinions below, and all fees and charges will be paid at the
time of such filing;

 

We understand that with respect to title
matters, you will be relying upon your own title insurance policy or title
examination. We have not made any investigation of, and do not express an
opinion as to, any matters of title to or the description of any property
(whether real, personal or mixed) or priority of liens.

 

3.                                        Opinions

 

Subject to the foregoing assumptions, we are of the
opinion that:

 

3

 

3.1                                  We cannot give an
unqualified opinion that the Lender Parties are not required to qualify to do
business in Louisiana. Louisiana law provides that all entities must qualify
with the Louisiana Secretary of State before transacting business in Louisiana.
Many exceptions are, however, provided, including but not limited to: (a) creating
evidences of debt, mortgages or liens; (b) securing or collecting debts or
enforcing any rights in property securing the same; and (c) transacting
any business in interstate or foreign commerce.

 

If it is determined that the Lender Parties should have qualified to do
business in Louisiana, then such Lender Party would not be permitted to present
any judicial demand before any state court of Louisiana until qualification
including paying all fees and taxes which would have been imposed. The failure
to qualify should not, however, impair the validity of the Mortgage or Fixture
Filing, and would not prevent any Lender Party from defending any action, suit
or proceeding in any court of Louisiana. In a transaction where a lender has no
place of business or other presence in Louisiana and is not otherwise
conducting business in Louisiana, the transaction was negotiated, documented,
executed, closed and will be paid outside Louisiana, and where property is
taken as security in multiple states, including Louisiana, it is our opinion
that a Louisiana court or federal court having jurisdiction in Louisiana and
applying Louisiana law would likely hold the transaction to be an exempt
transaction under Louisiana law so that qualification in Louisiana is not
required. In addition, assuming the facts set forth in the immediately
preceding sentence, under Louisiana law there is no requirement that, solely as
a result of the execution, delivery or performance of the Documents, any of the
Lender Parties must acquire a license to carry out the transactions
contemplated by, to receive the benefits provided by, or to enforce the
provisions of the Documents.

 

If it were determined that such qualification and filing were required,
the validity of the Documents would not be affected thereby, but (i) if
the Collateral Agent were not qualified it would be precluded from enforcing
its rights as collateral agent on behalf of the Lenders in the courts of
Louisiana until such time as it is admitted to transact business in Louisiana
or (ii) assuming the Lender Parties would institute remedies without the
Collateral Agent, they would be precluded from enforcing their rights in the
courts of Louisiana until such time as they were admitted to transact business
in Louisiana. The lack of qualification should not, however, result in any
waiver of rights or remedies pending such qualification.

 

3.2                                  The execution, delivery,
filing or recording, as applicable, and performance by the Loan Parties of each
of the Documents to which each of them is a party (a) will not violate any
existing law, governmental rule or regulation of Louisiana and (b) do not
require any license, permit, authorization, consent or other approval of, any
exemption by, or any registration, recording or filing with any court,
administrative agency or other Governmental Authority of Louisiana.

 

3.3                                  The Mortgage constitutes the
legal, valid and binding obligation of the Mortgagor, enforceable against the
Mortgagor in accordance with its terms.

 

3.4                                  Following the proper
authorization, execution, and delivery of the Mortgage by the Mortgagor and the
filing of the Mortgage in the mortgage records of the Clerk of Court of West
Baton Rouge Parish, the Mortgage will create a legal, valid, binding, and fully
perfected (a) mortgage lien in favor of the Collateral Agent upon
Mortgagor’s interest in that portion of the

 

4

 

Mortgaged Property described in such Mortgage constituting land, the
component parts thereof, and immovable improvements thereon which is located in
such parish, (b) collateral assignment of the leases and rents in favor of
the Collateral Agent related to such land and immovable improvements as
contemplated by La. R.S. 9:4401, and (c) a collateral assignment under La.
R.S. 9:5386 of insurance proceeds resulting from the damage or destruction of
the mortgaged immovable improvements (the “Insurance”)  in
favor of the Collateral Agent. Except as described in Section 4.6
below, no further filings or notices in Louisiana are necessary to perfect such
liens and collateral assignments.

 

3.5                                  The Mortgage provides for
the remedies and contains the other terms and provisions customarily included
in mortgages of immovable property in Louisiana. The Mortgage is in proper form
for recording in Louisiana.

 

3.6                                  The Mortgage creates a
valid, binding, and enforceable security interest in favor of the Collateral
Agent under the UCC in the Fixtures that are located on the Land.

 

3.7                                  The Fixture Filing is in
appropriate form for filing in the UCC records of the clerk of court of any
parish of Louisiana other than Orleans Parish or with the Recorder of Mortgages
of Orleans Parish, Louisiana. Upon the filing of the Fixture Filing in the UCC
records of the Clerk of Court of any parish of Louisiana other than Orleans
Parish or with the Recorder of Mortgages of Orleans Parish, Louisiana and the
payment of all filing fees related thereto, the security interest under the UCC
in favor of Collateral Agent in the Fixtures located on the Land described in
the Fixture Filing will be perfected. Except as described in Subsection
4.3.10 and Section 4.9 below, no further filings or notices in
Louisiana are necessary to perfect or maintain the perfection of Collateral
Agent’s security interest in the Fixtures.

 

3.8                                  No taxes or other charges,
including, without limitation, intangible or documentary stamp taxes, mortgage
taxes, transfer taxes or similar charges, are payable to Louisiana or to any
jurisdiction therein on account of the execution or delivery or recording or
filing of the Mortgage or the Fixture Filing or the creation of the Obligations
evidenced or secured by any of the Documents, as applicable, except for nominal
filing or recording fees.

 

3.9                                  Provided the judicial
foreclosure sale of the Mortgaged Property is conducted in strict conformity
with all applicable laws of Louisiana, including, without limitation, the
Louisiana Deficiency Judgment Act, the transfer of all or any portion of the
Mortgaged Property in connection with the exercise in Louisiana of the remedy
of the judicial foreclosure under the Mortgage will not limit or impair the
liability of the Mortgagor under the Mortgage with respect to the Obligations
secured thereby or the Collateral Agent’s rights or remedies to the foreclosure
or enforcement in Louisiana of any other security interest or liens securing
such Obligations; provided, however, that the proceeds of the sale of the
Mortgaged Property will be applied as a credit against the Obligations
exclusively. The Louisiana law does not require a lienholder to elect to pursue
its remedies exclusively against either mortgaged immovable property or movable
property where such lienholder holds a security interest and liens on both
immovable and movable property of a debtor.

 

5

 

3.10                       None of the
provisions of the Documents will violate any law, statute or regulation of
Louisiana relating to usury and the use of counterpart originals of any of the
Documents does not affect the enforceability of any of the Documents.

 

4.                                        Qualifications,
Exceptions and Limitations

 

Our opinions expressed above
are subject to the following qualifications, exceptions and limitations:

 

4.1                                 The validity,
binding effect and enforceability of the Mortgage or any particular provisions
or remedy therein may be limited by (a) bankruptcy, insolvency,
reorganization, moratorium or other statutes, rules, regulations or laws
affecting the enforcement of creditor’s rights generally, (b) general
principles of equity and the exercise of equitable powers by a court of
competent jurisdiction, including, without limitation, the unavailability of or
limitation on the availability of a particular right or remedy because of an
equitable principle, such as specific performance or injunctive relief, or a
requirement as to commercial reasonableness, conscionability or good faith and (c) applicable
state and federal laws relating to fraudulent transfers or conveyances. In
addition, the Collateral Agent’s remedies under the Mortgage will be subject to
the requirement that the Collateral Agent act in good faith and that certain
procedural matters be satisfied in connection with any enforcement proceeding.

 

4.2                                 Our opinion as
to perfection of the liens, security interests, and collateral assignments
created by the Mortgage are subject to the assumption that the Collateral Agent
has not waived, or agreed with any third party to any modification of, the
perfection of such liens, security interests, or collateral assignments.

 

4.3                                 We express no opinion with
respect to any of the following:

 

4.3.1                        the priority and ranking of
any mortgage, security interest or other lien created pursuant to the Mortgage;

 

4.3.2                        the legality, validity,
binding effect, enforceability or perfection of any provision of the Mortgage
purporting to cover or affect, or grant a lien on, any collateral other than
the interest of Mortgagor in (a) the Land described in the Mortgage, the
component parts thereof, and any immovable improvements located on such Land, (b) the
leases and rents associated with such Land and immovable improvements, (c) the
Insurance, and (d) the Fixtures;

 

4.3.3                        the enforceability of any
severability clause, irrevocable power of attorney or appointment, waiver of
unknown rights or defenses or extension of statutes of limitations contained in
the Mortgage;

 

4.3.4                        the availability of
executory process under Louisiana law to the Collateral Agent following an
Event of Default;

 

4.3.5                        any provision of the
Mortgage that provides for (a) the continuation of any lien created
thereby notwithstanding that any Obligations secured thereby may become invalid
or

 

6

 

otherwise unenforceable or (b) the continuing validity of any
Obligation secured by any lien following foreclosure or other realization on
such lien;

 

4.3.6                       title or status
of title to, or the existence of, any of the collateral purposed to be
encumbered by the Mortgage;

 

4.3.7                       the right to
exercise self-help or other remedies without judicial process;

 

4.3.8                       the adequacy of
the Mortgage’s description of the Land or other Mortgaged Property;

 

4.3.9                       the application
of the Mortgage to easements, servitudes and other appurtenant rights to the
Land that are not described with specificity in the Mortgage; or

 

4.3.10                 the perfection of a security
interest in any Fixtures described in the Fixture Filing which are acquired by
the Mortgagor more than four months after the Mortgagor so changes its name as
to make the Fixture Filing seriously misleading, unless new appropriate
financing statements indicating the new name, of a security interest therein
are properly filed before the expiration of four months from the name change.

 

4.4                                 Certain provisions of the
Mortgage impose indemnification obligations on the parties thereto. Courts may
apply public policy considerations in limiting the rights of parties seeking to
obtain indemnification under circumstances where the conduct of such parties in
the circumstances in question is determined to have constituted negligence or
willful misconduct.

 

4.5                                 The Mortgage provides that
its assignment of leases and rents can be exercised without further notice to
any other party. La. R.S. 9:4401 requires notice to the obligors under the
assigned leases and rents before such obligors are bound by the terms of the
assignment. Prior to such obligors’ receipt of such notice, the Collateral
Agent’s rights under the assignment are subject to all dealings between the
Mortgagor and such obligors. Likewise, the Collateral Agent’s rights to the
Insurance are subject to all dealings between the Mortgagor and its insurers
until such insurers receive notice of the assignment as contemplated by La.
R.S. 9:5386.

 

4.6                                 We note that, subject to La.
Civ. Code Art. 3357, the effectiveness of the recordation of the Mortgage will
lapse if the Mortgage is not reinscribed in the mortgage records of the parish
in which the Mortgage was originally recorded within ten years following the
Mortgage’s date and within each subsequent ten-year period thereafter.

 

4.7                                 In the case of proceeds of
the Fixtures, continuation of perfection of the security interests therein
under the UCC is limited to the extent set forth in Section 9-315 of the
UCC.

 

4.8                                 A buyer of the Fixtures in
the ordinary course of business may acquire the Fixtures free of the Collateral
Agent’s security interest as contemplated by Section 9-320 of the UCC.

 

4.9                                 In order to maintain the
perfection of the security interest in the Fixtures perfected by the filing of
the Fixture Filing, it will be necessary to file continuation statements with
respect thereto with the same filing office where the Fixture Filing was filed
within the six month period

 

7

 

prior to the expiration of five years after the date of filing of the
Fixture Filing and within each six month period prior to the expiration of each
five year period thereafter.

 

4.10                          The obligations of the
Mortgagor under the Mortgage are those of a guarantor, and, unless such
obligations are contemporaneously therewith reaffirmed, any renewal, extension
or material modification of the primary obligors’ obligations may extinguish
the guarantor’s obligations. We further advise you that under the provisions of
La. Civ. Code arts. 3058, et seq., a suretyship (guaranty) (a) is
extinguished upon extinction of the principal obligation for which it is given,
(b) is terminated upon notice by the surety to the creditor (except that
any such termination would not affect the surety’s liability for obligations
incurred by the principal obligor, or obligations that the creditor is bound to
permit the principal obligor to incur, at the time the notice is received), and
(c) may be extinguished, to the extent the surety is prejudiced by the action,
by a modification or amendment of the principal obligation, or the impairment of
security held for the guaranteed obligations by the creditor in any material
manner and without the consent of the surety. Further, under certain provisions
of the Louisiana Civil Code (including, without limitation, articles 1803 and
1892 thereof), a remission of debt, transaction or compromise with one joint
and several obligor may have the effect of releasing the other joint and
several obligors for all or a portion of the amount involved. We express no
opinion whatsoever with respect to any provisions of the Mortgage which are in
conflict with or which purport to vary these provisions of law.

 

We are admitted to practice in Louisiana. We
express no opinion as to matters under or involving the laws of any
jurisdiction other than laws of Louisiana and its political subdivisions and,
to the extent expressly provided above, the United States.

 

The opinions expressed
herein are limited to the specific issues addressed herein and are expressed as
of the date hereof and are not intended to have any prospective effect. We
assume no obligation to advise you or any other person or entity of any changes
concerning the above, whether or not deemed material, which may hereafter come
or be brought to our attention, including but not limited to, changes which
could result from pending or future legislation, law or jurisprudence.

 

The foregoing expresses our legal opinion as to the
matters set forth above and is based upon our professional knowledge and
judgment at this time; it is not, however, to be construed as a guarantee, nor
is it a warranty that a court considering such matters would not rule in a
manner contrary to the opinions set forth above.

 

This opinion may be relied upon by each of you, by any successors and
assigns of the Administrative Agent, the Collateral Agent, the Issuing Bank and
any participant, assignee or successor to the interests of the Lenders under
the Loan Documents.

 

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  /s/
  Jones, Walker, Waechter, Poitevent, 

  
	
   

  	
  Carrère &
  Denègre, L.L.P.

  
	
   

  	
  Jones,
  Walker, Waechter, Poitevent, 

  Carrère & Denègre, L.L.P.

  

 

8

 

Exhibit A

 

UCC 1 FIXTURE FILING

 

 

UCC FINANCING STATEMENT

FOLLOW INSTRUCTIONS (front
and back) CAREFULLY

 

	
  A.
  NAME & PHONE OF CONTACT AT FILER [optional]

  	
   

  
	
   

  	
   

  
	
  Joanne Kang

  	
  (212) 474-1000

  	
   

  
	
   

  	
   

  
	
  B.
  SEND ACKNOWLEDGMENT TO:   (Name and
  Address)

  	
   

  
	
   

  	
   

  
	
  Cravath, Swaine &
  Moore LLP

  825 Eighth Avenue

  Worldwide Plaza

  New York, NY 10019

   

  jkang@cravath.com

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  ABOVE SPACE IS FOR FILING OFFICE USE ONLY

  
			

 

 

	
  1. DEBTOR’S EXACT FULL
  LEGAL NAME - insert only one debtor name (1a or 1b) - do not
  abbreviate or combine names

  
	
   

  
	
   

  	
  1a. ORGANIZATION’S NAME

  INO THERAPEUTICS LLC

  
	
  OR

  	
   

  
	
   

  	
  1b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
  6 ROUTE 173

  	
  CLINTON

  	
  NJ

  	
  08809

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1d. SEE INSTRUCTIONS

  	
  ADD’L INFO RE 

  	
  1e. TYPE OF ORGANIZATION

  	
  1f. JURISDICTION OF
  ORGANIZATION

  	
  1g. ORGANIZATIONAL ID #,
  if any

  
	
   

  	
  ORGANIZATION

  DEBTOR

  	
  LLC

  	
  Delaware

  	
   

  	
  3724403

  	
   

  o NONE

  
	
   

  
	
  2. ADDITIONAL DEBTOR’S
  EXACT FULL LEGAL NAME - insert only one debtor name (2a or 2b) - do
  not abbreviate or combine names

  
	
   

  
	
   

  	
  2a. ORGANIZATION’S NAME

   

  
	
  OR

  	
   

  
	
   

  	
  2b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2d. SEE INSTRUCTIONS

  	
  ADD’L INFO RE
  ORGANIZATION

  	
  2e. TYPE OF ORGANIZATION

   

  	
  2f. JURISDICTION OF
  ORGANIZATION

  	
  2g. ORGANIZATIONAL ID #,
  if any

  
	
   

  	
  DEBTOR

  	
   

  	
   

  	
   

  	
  o NONE

  
	
   

  
	
  3. SECURED PARTY’S NAME
  (or NAME of TOTAL ASSIGNEE of ASSIGNOR S/P) - insert only one secured
  party name (3a or 3b)

  
	
   

  
	
   

  	
  3a. ORGANIZATION’S NAME

  CREDIT SUISSE AG, AS
  COLLATERAL AGENT

  
	
  OR

  	
   

  
	
   

  	
  3b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
  11 MADISON AVENUE

  	
  NEW YORK

  	
  NY

  	
  10010

  	
  USA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  
	
  4.
  This FINANCING
  STATEMENT covers the following collateral:

  
	
  ALL FIXTURES LOCATED ON
  THE REAL ESTATE AS DESCRIBED ON EXHIBIT A ATTACHED HERETO AND INCORPORATED BY
  REFERENCE HEREIN.

   

  THIS IS A FIXTURE FILING
  AND SHOULD BE RECORDED IN THE REAL ESTATE RECORDS.

  
									

 

 

	
  5. ALTERNATIVE DESIGNATION [If applicable]: o LESSEE/LESSOR o CONSIGNEE/CONSIGNOR o BAILEE/BAILOR o SELLER/BUYER o AG. LIEN o NON-UCC FILING

  
	
   

  
	
  6.

  	
  x

  	
  This
  FINANCING STATEMENT is to be filed [for record] (or recorded) in the REAL
  ESTATE RECORDS. Attach
  Addendum                          [if
  applicable]

  	
  7.

  	
  Check
  to REQUEST SEARCH REPORT(S) on Debtor(s) [ADDITIONAL
  FEE]                 [optional]

  	
  o All Debtors   o Debtor
  1   o Debtor 2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  OPTIONAL
  FILER REFERENCE DATA

  	
   

  	
   

  	
  F#275293

  
	
   

  	
  5865-713
  — LA - West Baton Rouge Parish

  	
   

  	
   

  	
  A#407469

  

 

FILING
OFFICE COPY — UCC
FINANCING STATEMENT (FORM UCC1) (REV. 05/22/02)

 

 

UCC FINANCING STATEMENT ADDENDUM

FOLLOW INSTRUCTIONS (front
and back) CAREFULLY

 

	
  9.
  NAME OF FIRST DEBTOR (1a or 1b) ON RELATED FINANCING STATEMENT

  	
   

  
	
   

  	
   

  
	
   

  	
  9a. ORGANIZATION’S NAME

  INO THERAPEUTICS LLC

  	
   

  
	
  OR

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME, SUFFIX

  	
   

  
	
   

  	
   

  
	
  10.
  MISCELLANEOUS:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  ABOVE SPACE IS FOR FILING OFFICE USE ONLY

  
	
   

  
	
  11. ADDITIONAL DEBTOR’S
  EXACT FULL LEGAL NAME - insert only one name (11a or 11b) - do not
  abbreviate or combine names

  

 

	
   

  	
  11a. ORGANIZATION’S NAME

  
	
  OR

  	
   

  
	
   

  	
  11b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  

 

	
  11c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11d. SEE INSTRUCTIONS

  	
  ADD’L INFO RE
  ORGANIZATION

  	
  11e. TYPE OF
  ORGANIZATION

   

  	
  11f. JURISDICTION OF
  ORGANIZATION

  	
  11g. ORGANIZATIONAL ID #,
  if any

   

  
	
   

  	
  DEBTOR

  	
   

  	
   

  	
   

  	
  o NONE

  
									

 

	
  12. o ADDITIONAL SECURED PARTY’S or  o ASSIGNOR S/P’S   NAME - insert only one name (12a or
  12b)

  
	
   

  
	
   

  	
  12a. ORGANIZATION’S NAME

   

  
	
  OR

  	
   

  
	
   

  	
  12b. INDIVIDUAL’S LAST
  NAME

  	
  FIRST NAME

  	
  MIDDLE NAME

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12c. MAILING ADDRESS

  	
  CITY

  	
  STATE

  	
  POSTAL CODE

  	
  COUNTRY

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  13. This FINANCING STATEMENT covers o timber to be cut or o as-extracted collateral, or is filed as
  a x fixture filing.

  	
   

  	
  16. Additional
  collateral description:

  
	
   

  
	
  14. Description of real
  estate:

  
	
  SEE EXHIBIT A.

  

 

	
  15.

  	
  Name
  and address of a RECORD OWNER of above-described real estate (if Debtor does
  not have a record interest):

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  17.  Check only if applicable and check
  only one box.

  	
   

  
	
   

  	
   

  	
   

  	
  Debtor
  is a o Trust   or
  o Trustee acting with respect to property held in
  trust   or o Decedent’s
  Estate

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  18.
  Check only if applicable and check only one box.

  	
   

  
	
   

  	
   

  	
   

  	
  o Debtor is a TRANSMITTING
  UTILITY

  	
   

  
	
   

  	
   

  	
   

  	
  o Filed in connection with
  a Manufactured-Home Transaction

  	
   

  
	
   

  	
   

  	
   

  	
  o Filed in connection with
  a Public-Finance Transaction

  	
   

  

 

International Association of Commercial Administrators
(IACA)

 

FILING
OFFICE COPY — UCC
FINANCING STATEMENT ADDENDUM (FORM UCC1Ad) (REV. 05/21/09)

 

 

EXHIBIT A

 

PARCEL AC-2-A

 

A
CERTAIN TRACT OR PARCEL OF GROUND, situated in the Parish of West Baton Rouge,
State of Louisiana, in that subdivision known as WESTPORT, and being designated
as TRACT “AC-2-A” of the Resubdivision of TRACT “AC-2” on a map prepared by
Stevens Engineering entitled “Final Plat of Tracts AC-2-A and AC-2-B Westport
being the Resubdivision of Tract AC-2 Located in Sections 68 & 69,
T7S-R12E, Southeastern Land District, West Baton Rouge Parish, Louisiana, for
The BOC Group, Inc.” dated February 20, 1998, a copy of which is on
file and of record in Map Book 4, Entry 221 of the official records of West
Baton Rouge Parish, Louisiana, said tract having such size, shape and
dimensions as shown on said map, said tract or parcel of ground being the same
property more particularly described as follows:

 

A certain parcel or tract of
land located in Sections 68 & 69, Township 7 South, Range 12 East,
West Baton Rouge Parish Louisiana, and being more particularly described as
follows:

 

Commence at a point, which is the intersection of the South right of
way line of Commercial Drive with the West right of way line of Allendale
Drive:

 

Thence proceed S 02°25’25” E a distance of 300.00’ to a point;

 

Thence proceed N 87°34’35” E a distance of 80.00’ to a point;

 

Thence proceed S 02°25’25” E a distance of 35.00’ to a point, the Actual
Point of Beginning;

 

Thence proceed N 87°34’35” E a distance of 300.62’ to a point;

 

Thence proceed S 02°25’25” E a distance of 200.22’ to a point;

 

Thence proceed S 87°34’35” W a distance of 11.71’ to a point;

 

Thence proceed S 02°25’25” E a distance of 199.78’ to a point;

 

Thence proceed N 87°34’35” E a distance of 11.09’ to a point;

 

Thence proceed S 02°25’25” E a distance of 284.29’ to a point;

 

Thence proceed with a curve turning to the right with an arc length of
399.48’;

 

with a radius of 5579.58’, with a chord bearing of N 67°49’05” W, with
a chord length of 399.39’ to a point;

 

Thence proceed N 65°45”43” W a distance of 41.26’ to a point;

 

Thence proceed N 02°25’25” W a distance of 349.48’ to a point;

 

Thence proceed N 87°34’35” E a distance of 100.00’ to a point;

 

 

Thence proceed N 02°25’25” W a distance of 150.00’
to a point, the Actual Point of Beginning;

 

and

 

PARCEL B

 

A
certain parcel or tract of land, located in Sections 68 & 93, Township
7 South, Range 12 East, West Baton Rouge Parish, Louisiana, being more
particularly described as follows:

 

Commence at a point which is the intersection of the South right of way
line of Commercial Drive and the West right of way line of Allendale Drive the
actual Point of Beginning:

 

Thence proceed S02°25’25”E a distance of 300.00’ to a point;

 

Thence proceed S87°34’35”W along and fronting on a 35’ railroad
servitude a distance of 182.74’ to a point;

 

Thence proceed along and fronting on a 35’ railroad servitude, with a
curve turning to the right with an arc length of 650.72’, with a radius of
556.19’ with a chord bearing of N58°54’23”W with a chord length of 614.24’;

 

Thence proceed with a curve turning to the left with an arc length of
229.37’, with a radius of 664.79’, with a chord bearing of S82° 32’22”E. with a
chord length of 228.23’;

 

Thence proceed N87°34’35”E a distance of 470.00’ to a point, which is
the Point of Beginning.

 

The
above described Parcel B fronts on and is bounded by a 35’ railroad servitude
and right-a-way on its southerly and westerly sides;

 

and

 

PARCEL F-l

 

A
certain parcel or tract of land, located in Sections 68, 69, 93 & 94,
Township 7 South, Range 12 East, West Baton Rouge Parish, Louisiana, being more
particularly described as follows:

 

Commence at a point which is the intersection of the South right of way
line of Commercial Drive and the East right of way line of Allendale Drive:

 

Thence proceed S02°25’25”E a distance of 335.00’ to a point, the actual
Point of Beginning;

 

Thence proceed S02°25’25”E a distance of 150.00’ to a point;

 

Thence proceed S87°34’35”W a distance of 100.00’ to a point;

 

Thence proceed S02°25’25”E a distance of 349.48’ to a point;

 

Thence proceed N65°46’03”W a distance of 389.20’ to a point;

 

 

Thence proceed N58°14’46”W a distance of 429.61’ to a point;

 

Thence proceed N03°07’19”W a distance of 447.98’ to a point;

 

Thence proceed along and fronting on a 35’ railroad servitude, with a
curve turning to the left with an arc length of 695.89’, with a radius of
591.19’, with a chord bearing of S58°42’07”E, with a chord length of 656.41;

 

Thence proceed N87°34’35”E along and fronting on a 35’ railroad
servitude, a distance of 262.74’ to a point, which is the Point of Beginning;

 

The
above described Parcel F-I fronts on and is bounded by a 35’ railroad servitude
and right-a-way on its northerly side; 

 

and

 

PARCEL Z SERVITUDE

 

A
perpetual servitude of passage in favor of and for the benefit of the above
described Parcels F-l and AC-2-A, as shown on the survey by Baton Rouge Land
Surveying, Inc., dated December 21, 2001, in, on, over, across,
through, under and above the following described property, to wit:

 

That
certain parcel of ground, situated in the Parish of West Baton Rouge, State of
Louisiana, in Sections 68, 69 and 93, Township 7 South, Range 12 East, designated
as Parcel Z on the said survey by Baton Rouge Land Surveying, Inc. dated December 21,
2001, a copy of which is attached hereto and made a part hereof, including,
without limitation, that portion of Parcel Z which is bounded on the north by
Allendale Drive, on the south by said Parcel F-l, on the east by the southerly
extension of the easterly right-of-way line of Allendale Drive, south 02°25’25”
east, a distance of 35’ across Parcel Z to the northerly property line of
Parcel F- 1, and on the west by the southerly extension of the westerly
right-of-way line of Allendale Drive, south 02°25’25” east a distance of 35’
across Parcel Z from the northerly right-of-way line of Allendale Drive to the
northerly property line of said Parcel F-I;

 

all
as more particularly described on the survey of Baton Rouge Land Surveying, Inc.,
dated March 23, 2007.

 

The
improvements bear municipal number 1060 Allendale Drive, Port Allen, LA 70767.

 

 

EXHIBIT F-1

 

LENDER:
[·]

PRINCIPAL
AMOUNT: $[·]

 

 

FORM OF REVOLVING PROMISSORY NOTE

 

New York, New York

[·], 2010

 

FOR
VALUE RECEIVED, the undersigned, IKARIA ACQUISITION INC., a Delaware
corporation (the “Borrower”),
hereby promises to pay to the Lender set forth above (the “Lender”) or its registered assigns, in lawful
money of the United States of America in immediately available funds at the
office of Credit Suisse AG, One Madison Avenue, New York, New York 10010, on
the Revolving Credit Maturity Date (as defined in the Credit Agreement dated as
of May [·], 2010 (as the
same may be amended, supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Ikaria, Inc., the Borrower, the lenders from time to time party
thereto and Credit Suisse AG, as administrative agent (in such capacity, the “Administrative Agent”)
for the lenders), (A) the lesser of (i) the Principal Amount set
forth above and (ii) the aggregate unpaid principal amount of all
Revolving Loans made by the Lender to the Borrower pursuant to the Credit
Agreement, and (B) interest from the date hereof on the principal amount
from time to time outstanding at the rate or rates per annum and payable on
such dates as provided in the Credit Agreement. 
Capitalized terms used but not defined herein shall have the meanings
assigned thereto in the Credit Agreement.

 

The Borrower promises to pay interest, on
demand, on any overdue principal and, to the extent permitted by law, overdue
interest from their due dates at the rate or rates provided in the Credit
Agreement.

 

This Note is one of the promissory notes
referred to in Section 2.04(e) of the Credit Agreement that, among
other things, contains provisions for the acceleration of the maturity hereof
upon the happening of certain events, for optional and mandatory prepayment of
the principal hereof prior to the maturity hereof and for the amendment or
waiver of certain provisions of the Credit Agreement, all upon the terms and
conditions therein specified.  This Note
is entitled to the benefit of the Credit Agreement and is guaranteed and
secured as provided therein and in the other Loan Documents referred to
therein.

 

In case an Event of Default shall occur and
be continuing, the principal of and accrued interest on this Note may become or
be declared to be due and payable in the manner and with the effect provided in
the Credit Agreement.  The nonexercise by
the Lender of any of its rights hereunder in any particular instance shall not
constitute a waiver thereof in that or any subsequent instance.

 

The Borrower hereby waives diligence,
presentment, demand, protest and notice of any kind in connection with this
Note.

 

 

All Borrowings evidenced by this Note, the
Type thereof, the maturity thereof, all payments, repayments and prepayments of
the principal hereof and interest hereon and the respective dates thereof shall
be recorded by the Lender and, prior to any transfer hereof, endorsed by the
Lender on the applicable schedule attached hereto and made a part hereof, or on
a continuation of such schedules attached to and made a part hereof or
otherwise recorded by such Lender in its internal records; provided
that the failure of the Lender to make any such recordation or endorsement
shall not affect the obligations of the Borrower under this Note or under the
Credit Agreement.

 

This Note and the Revolving Loans evidenced
hereby may be transferred in whole or in part only by registration of such
transfer on the Register maintained for such purpose by or on behalf of the
undersigned as provided in Section 9.04(d) of the Credit Agreement.

 

THIS NOTE AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK).

 

 

	
   

  	
  IKARIA
  ACQUISITION INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
    Name:

  
	
   

  	
   

  	
   

  	
    Title:

  

 

 

Schedule A  to Note

 

LOANS, CONVERSIONS AND REPAYMENTS OF ABR LOANS

 

	
  Date

  	
   

  	
  Amount
  of ABR Loans

  	
   

  	
  Amount Converted to ABR
  

  Loans

  	
   

  	
  Amount
  of Principal of 

  ABR Loans Repaid

  	
   

  	
  Amount
  of ABR Loans 

  Converted to Eurodollar 

  Loans

  	
   

  	
  Unpaid Principal Balance
  

  of ABR Loans

  	
   

  	
  Notation
  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Schedule B  to
Note

 

LOANS, CONTINUATIONS, CONVERSIONS AND REPAYMENTS OF EURODOLLAR LOANS

 

	
  Date

  	
   

  	
  Amount
  of

  Eurodollar Loans

  	
   

  	
  Amount
  Converted

  to Eurodollar Loans

  	
   

  	
  Interest Period and

  Adjusted LIBOR with

  Respect Thereto

  	
   

  	
  Amount of Principal of

  Eurodollar Loans

  Repaid

  	
   

  	
  Amount of Eurodollar

  Loans Converted to

  ABR Loans

  	
   

  	
  Unpaid Principal

  Balance of Eurodollar

  Loans

  	
   

  	
  Notation
  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

4

 

EXHIBIT F-2

 

LENDER:
[•]

PRINCIPAL
AMOUNT: $[•]

 

FORM OF TERM PROMISSORY NOTE

 

New
York, New York

[•],
2010

 

FOR
VALUE RECEIVED, the undersigned, IKARIA ACQUISITION INC., a Delaware
corporation (the “Borrower”),
hereby promises to pay to the Lender set forth above (the “Lender”) or its registered assigns, in lawful
money of the United States of America in immediately available funds at the
office of Credit Suisse AG, One Madison Avenue, New York, New York 10010 (i) on
the dates set forth in the Credit Agreement dated as of May [·], 2010 (as the same may be amended, supplemented or
otherwise modified from time to time, the “Credit
Agreement”), among Ikaria, Inc., the Borrower, the lenders
from time to time party thereto and Credit Suisse AG, as administrative agent
(in such capacity, the “Administrative
Agent”) for the lenders), the principal amounts set forth in the
Credit Agreement, and (ii) on each Interest Payment Date, interest at the
rate or rates per annum as provided in the Credit Agreement on the unpaid
principal amount of all Term Loans made by the Lender to the Borrower pursuant
to the Credit Agreement.  Capitalized
terms used but not defined herein shall have the meanings assigned thereto in
the Credit Agreement.

 

The Borrower promises to pay interest, on
demand, on any overdue principal and, to the extent permitted by law, overdue
interest from their due dates at the rate or rates provided in the Credit
Agreement.

 

This Note is one of the promissory notes
referred to in Section 2.04(e) of the Credit Agreement that, among
other things, contains provisions for the acceleration of the maturity hereof
upon the happening of certain events, for optional and mandatory prepayment of
the principal hereof prior to the maturity hereof and for the amendment or
waiver of certain provisions of the Credit Agreement, all upon the terms and
conditions therein specified.  This Note
is entitled to the benefit of the Credit Agreement and is guaranteed and
secured as provided therein and in the other Loan Documents referred to
therein.

 

In case an Event of Default shall occur and
be continuing, the principal of and accrued interest on this Note may become or
be declared to be due and payable in the manner and with the effect provided in
the Credit Agreement.  The non-exercise
by the Lender of any of its rights hereunder in any particular instance shall
not constitute a waiver thereof in that or any subsequent instance.

 

The Borrower hereby waives diligence,
presentment, demand, protest and notice of any kind in connection with this
Note.

 

 

All Borrowings evidenced by this Note, the
Type thereof, the maturity thereof, all payments, repayments and prepayments of
the principal hereof and interest hereon and the respective dates thereof shall
be recorded by the Lender and, prior to any transfer hereof, endorsed by the
Lender on the applicable schedule attached hereto and made a part hereof, or on
a continuation of such schedules attached to and made a part hereof or
otherwise recorded by such Lender in its internal records; provided
that the failure of the Lender to make any such recordation or endorsement
shall not affect the obligations of the Borrower under this Note or under the
Credit Agreement.

 

This
Note and the Term Loans evidenced hereby may be transferred in whole or in part
only by registration of such transfer on the Register maintained for such
purpose by or on behalf of the undersigned as provided in Section 9.04(d) of
the Credit Agreement.

 

THIS NOTE AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF
NEW YORK (INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK).

 

	
   

  	
  IKARIA
  ACQUISITION INC.

  
	
   

  	
   

  
	
   

  	
  By

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

2

 

Schedule A  to Note

 

LOANS , CONVERSIONS AND REPAYMENTS OF ABR LOANS

 

	
  Date

  	
   

  	
  Amount
  of ABR Loans

  	
   

  	
  Amount Converted to ABR
  

  Loans

  	
   

  	
  Amount
  of Principal of 

  ABR Loans Repaid

  	
   

  	
  Amount
  of ABR Loans 

  Converted to Eurodollar 

  Loans

  	
   

  	
  Unpaid Principal Balance

  of ABR Loans

  	
   

  	
  Notation
  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Schedule B  to Note

 

LOANS, CONTINUATIONS, CONVERSIONS AND REPAYMENTS OF EURODOLLAR LOANS

 

	
  Date

  	
   

  	
  Amount
  of 

  Eurodollar Loans

  	
   

  	
  Amount
  Converted 

  to Eurodollar Loans

  	
   

  	
  Interest Period and

  Adjusted LIBOR with

  Respect Thereto

  	
   

  	
  Amount of Principal of

  Eurodollar Loans

  Repaid

  	
   

  	
  Amount of Eurodollar

  Loans Converted to

  ABR Loans

  	
   

  	
  Unpaid Principal

  Balance of Eurodollar

  Loans

  	
   

  	
  Notation
  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

4

 

EXHIBIT G

 

CERTIFICATE RE NON-BANK STATUS

 

Reference
is made to the Credit Agreement, dated as of May [·], 2010 (as it may be amended, supplemented or
otherwise modified, the “Credit Agreement”,
the terms defined therein and not otherwise defined herein being used herein as
therein defined), by and among, Ikaria, Inc., Ikaria Acquisition Inc., (“Borrower”) the Lenders party thereto
from time to time, and Credit Suisse AG, as Administrative Agent.

 

Pursuant
to Section 2.20(f) of the Credit Agreement, the undersigned hereby
certifies that:

 

1.             The
Lender is the sole record and beneficial owner of the interest in the Loans
(the “Interest”) in
respect of which it is providing this certificate and it shall remain the sole
beneficial owner of the Interest at all times during which it is the record
holder of such Interest.

 

2.             The
Lender is not a “bank” or other Person described in Section 881(c)(3) of
the Internal Revenue Code of 1986, as amended (the “Code”).

 

3.             The
Lender meets all of the requirements under Code Section 871(h) or 881(c) to
be eligible for a complete exemption from withholding of Taxes on interest
payments made to it under the Credit Agreement, including without limitation,
that it is not a 10-percent shareholder (within the meaning of Section 871(h)(3)(B) of
the Code) of the Borrower and it not a controlled foreign corporation related
to the Borrower (within the meaning of Sections 881(c)(3)(C) and 864(d)(4) of
the Code).  In connection with the
foregoing, the Lender represents and warrants that it has not taken and will
not take, any action that would cause an Interest held by it at any time during
the term of the Credit Agreement to fail to be in registered form within the
meaning of U.S. Treasury Regulations Section 5f.103-1(c).

 

4.             The
Lender shall promptly notify the Borrower and the Administrative Agent if any
of the representations and warranties made herein are no longer true and
correct.

 

IN
WITNESS WHEREOF, the undersigned has duly executed this certificate as of the
     day of
                      .

 

 

	
   

  	
  [LENDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

 

 

MORTGAGE,
ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND

FINANCING STATEMENT

 

From

 

INO THERAPEUTICS LLC

 

To

 

CREDIT SUISSE AG

 

 

 

Dated: May 14, 2010

Premises: Port Allen, Louisiana

West Baton Rouge Parish

 

 

 

	
  MORTGAGE, ASSIGNMENT OF

  	
  *

  	
   

  	
  UNITED STATES OF AMERICA 

  
	
  LEASES AND RENTS, AND

  	
  *

  	
   

  	
   

  
	
  SECURITY AGREEMENT

  	
  *

  	
   

  	
  STATE OF NEW YORK

  
	
  BY

  	
  *

  	
   

  	
   

  
	
   

  	
  *

  	
   

  	
  COUNTY OF NEW YORK

  
	
  INO THERAPEUTICS LLC

  	
  *

  	
   

  	
   

  
	
   

  	
  *

  	
   

  	
   

  
	
  IN FAVOR OF

  	
  *

  	
   

  	
   

  
	
   

  	
  *

  	
   

  	
   

  
	
  CREDIT SUISSE AG

  	
  *

  	
   

  	
   

  
	
   

  	
  *

  	
   

  	
   

  
	
  * * * * * * * * * * * * * * * * * * * * * * * *

  	
  *

  	
   

  	
   

  

 

BE IT KNOWN, that on this
14th day of May, 2010;

 

BEFORE ME, the undersigned
Notary Public, duly commissioned and qualified in and for the aforesaid County
and State, and in the presence of the undersigned competent witnesses:

 

PERSONALLY CAME AND APPEARED:

 

INO Therapeutics LLC, a Delaware
limited liability company, the last four digits of whose taxpayer
identification number are 1456 and whose mailing address is 6 Route 173,
Clinton, New Jersey 08809, appearing herein through its duly authorized representative
(“Transferor”) pursuant to the certified resolutions of its sole member
attached hereto as Exhibit A;

 

Who declared that:

 

WITNESSETH:

 

Reference is made to (i) the
Credit Agreement dated as of May 14, 2010 (as amended, supplemented or
otherwise modified from time to time, the “Credit Agreement”), among Ikaria
Acquisition, Inc., a Delaware corporation (the “Borrower”), Ikaria, Inc.,
a Delaware corporation (“Holdings”), the lenders from time to time party
thereto (the “Lenders”) and Credit Suisse AG, Eleven Madison Avenue, New York,
New York 10010, the last four digits of whose taxpayer identification number
are 5677 (the “Mortgagee”), as administrative agent (the “Administrative Agent”)
for the Lenders, collateral agent (the “Collateral Agent”) for the Secured
Parties (as defined below) and an issuing bank (an “Issuing Bank”) with respect
to any letters of credit (the “Letters of Credit”) issued pursuant to the terms
thereof and (ii) the Guarantee and Collateral Agreement dated as of May 14,
2010 (as amended, supplemented or otherwise modified from time to time, the “Guarantee
and Collateral Agreement”) among Holdings, the Borrower, the subsidiaries of
Holdings identified therein and the Collateral Agent. Capitalized terms used
but not defined herein have the meanings given to them in the Credit Agreement
and the Guarantee and Collateral Agreement.

 

In the Credit Agreement, (i) the Lenders have
agreed to make term loans (the “Term Loans”) and revolving loans (the “Revolving
Loans”, together with the Term Loans, the

 

 

“Loans”) to the Borrower and (ii) the Issuing
Banks have issued or agreed to issue from time to time Letters of Credit for
the account of the Borrower, in each case pursuant to, upon the terms, and
subject to the conditions specified in, the Credit Agreement. Amounts paid in
respect of Term Loans may not be reborrowed. Subject to the terms of the Credit
Agreement, Borrower may borrow, prepay and reborrow Revolving Loans.

 

Mortgagor is a wholly owned
direct or indirect Subsidiary of the Borrower and will derive substantial
benefit from the making of the Loans by the Lenders and the issuance of the
Letters of Credit by the Issuing Banks. In order to induce the Lenders to make
Loans and the Issuing Banks to issue Letters of Credit, the Mortgagor has
agreed to guarantee, among other things, the due and punctual payment and
performance of all of the Obligations (as defined in the Guarantee and
Collateral Agreement) of the Borrower under the Credit Agreement pursuant to
the terms of the Guarantee and Collateral Agreement.

 

The obligations of the
Lenders to make Loans and of the Issuing Banks to issue Letters of Credit are
conditioned upon, among other things, the execution and delivery by the
Mortgagor of this Mortgage in the form hereof to secure the Obligations.

 

As used in this Mortgage,
the term “Secured Parties” shall mean (a) the Lenders, (b) the
Administrative Agent, (c) the Collateral Agent, (d) any Issuing Bank,
(e) each counterparty to any Hedging Agreement with a Loan Party that
either (i) is in effect on the Closing Date if such counterparty is the
Administrative Agent or a Lender or an Affiliate of the Administrative Agent or
a Lender as of the Closing Date or (ii) is entered into after the Closing
Date if such counterparty is the Administrative Agent or a Lender or an
Affiliate of the Administrative Agent or a Lender at the time such Hedging
Agreement is entered into, in each case regardless of whether such counterparty
thereafter ceases to be the Administrative Agent or a Lender or an Affiliate of
the Administrative Agent or a Lender, (f) the beneficiaries of each
indemnification obligation undertaken by any Loan Party under any Loan Document
and (g) the successors and assigns of each of the foregoing.

 

Pursuant to the requirements
of the Credit Agreement, the Mortgagor is granting this Mortgage to create a
lien on and a security interest in the Mortgaged Property (as hereinafter
defined) to secure the performance and payment by the Mortgagor of the
Obligations. The Credit Agreement also requires the granting by other Loan
Parties of mortgages, deeds of trust and/or deeds to secure debt (the “Other
Mortgages”) that create liens on and security interests in certain real and
personal property other than the Mortgaged Property to secure the performance
of the Obligations.

 

3

 

Granting Clauses

 

NOW, THEREFORE, IN
CONSIDERATION OF the foregoing and in order to secure the due and punctual
payment and performance of the Obligations for the benefit of the Secured
Parties, Mortgagor hereby grants, conveys, mortgages, assigns and pledges to
the Mortgagee, a mortgage lien on and a security interest in, all the following
described property (the “Mortgaged Property”) whether now owned or held or
hereafter acquired:

 

(1)     the land more particularly described on Exhibit B
hereto (the “Land”), together with all rights appurtenant thereto, including
the easements over certain other adjoining land granted by any easement
agreements, covenant or restrictive agreements and all air rights, mineral
rights, water rights, oil and gas rights and development rights, if any,
relating thereto, and also together with all of the other easements, rights,
privileges, interests, hereditaments and appurtenances thereunto belonging or
in any way appertaining and all of the estate, right, title, interest, claim or
demand whatsoever of Mortgagor therein and in the streets and ways adjacent
thereto, either in law or in equity, in possession or expectancy, now or
hereafter acquired (the “Premises”);

 

(2)     all buildings, improvements, structures, paving, parking areas,
walkways and landscaping now or hereafter erected or located upon the Land, and
all fixtures of every kind and type affixed to the Premises or attached to or
forming part of any structures, buildings or improvements and replacements
thereof now or hereafter erected or located upon the Land (the “Improvements”);

 

(3)     all apparatus, movable appliances, building materials,
equipment, fittings, furnishings, furniture, machinery and other articles of
tangible personal property of every kind and nature, and replacements thereof,
now or at any time hereafter placed upon or used in any way in connection with
the use, enjoyment, occupancy or operation of the Improvements or the Premises,
including all of Mortgagor’s books and records relating thereto and including
all pumps, tanks, goods, machinery, tools, equipment, lifts (including fire
sprinklers and alarm systems, fire prevention or control systems, cleaning
rigs, air conditioning, heating, boilers, refrigerating, electronic monitoring,
water, loading, unloading, lighting, power, sanitation, waste removal,
entertainment, communications, computers, recreational, window or structural,
maintenance, truck or car repair and all other equipment of every kind),
restaurant, bar and all other indoor or outdoor furniture (including tables,
chairs, booths, serving stands, planters, desks, sofas, racks, shelves, lockers
and cabinets), bar equipment, glasses, cutlery, uniforms, linens, memorabilia
and other decorative items, furnishings, appliances, supplies, inventory, rugs,
carpets and other floor coverings, draperies, drapery rods and brackets,
awnings, Venetian blinds, partitions, chandeliers and other lighting fixtures,
freezers, refrigerators, walk-in coolers, signs (indoor and outdoor), computer
systems, cash registers and inventory control systems, and all other apparatus,
equipment, furniture, furnishings, and articles used in connection with the use
or operation of the Improvements or the Premises, it being understood that the
enumeration of any specific articles of property shall in no way result in or
be held to exclude any items of property not specifically mentioned (the
property referred to in this subparagraph (3), the “Personal Property”);

 

4

 

(4)      all general intangibles owned by Mortgagor and relating to
design, development, operation, management and use of the Premises or the
Improvements, all certificates of occupancy, zoning variances, building, use or
other permits, approvals, authorizations and consents obtained from and all
materials prepared for filing or filed with any governmental agency in
connection with the development, use, operation or management of the Premises
and Improvements, all construction, service, engineering, consulting, leasing,
architectural and other similar contracts concerning the design, construction,
management, operation, occupancy and/or use of the Premises and Improvements,
all architectural drawings, plans, specifications, soil tests, feasibility studies,
appraisals, environmental studies, engineering reports and similar materials relating
to any portion of or all of the Premises and Improvements, and all payment and performance
bonds or warranties or guarantees relating to the Premises or the Improvements,
all to the extent assignable (the “Permits, Plans and Warranties”);

 

With respect to any Personal
Property covered by both the Guarantee and Collateral Agreement and this
Mortgage, in the event of any conflict between the terms and provisions
contained in the body of this Mortgage and the terms and provisions contained
in the Guarantee and Collateral Agreement, the terms and provisions set forth
in the Guarantee and Collateral Agreement shall govern and control. Any release
of Collateral pursuant to the Guarantee and Collateral Agreement shall be
deemed to be a release of such Collateral hereunder.

 

(5)      all now or hereafter existing leases or licenses (under which
Mortgagor is landlord or licensor) and subleases (under which Mortgagor is
sublandlord), concession, management, mineral or other agreements of a similar
kind that permit the use or occupancy of the Premises or the Improvements for
any purpose in return for any payment, or the extraction or taking of any gas,
oil, water or other minerals from the Premises in return for payment of any
fee, rent or royalty (collectively, “Leases”), and all agreements or contracts
for the sale or other disposition of all or any part of the Premises or the
Improvements, now or hereafter entered into by Mortgagor, together with all
charges, fees, income, issues, profits, receipts, rents, revenues or royalties
payable thereunder (“Rents”);

 

(6)      all real estate tax refunds and all proceeds of the conversion,
voluntary or involuntary, of any of the Mortgaged Property into cash or
liquidated claims (“Proceeds”), including Proceeds of insurance maintained by
the Mortgagor and condemnation awards, any awards that may become due by reason
of the taking by eminent domain or any transfer in lieu thereof of the whole or
any part of the Premises or Improvements or any rights appurtenant thereto, and
any awards for change of grade of streets, together with any and all moneys now
or hereafter on deposit for the payment of real estate taxes, assessments or
common area charges levied against the Mortgaged Property, unearned premiums on
policies of fire and other insurance maintained by the Mortgagor covering any
interest in the Mortgaged Property or required by the Credit Agreement (with
respect to the insurance proceeds, this Mortgage is a collateral assignment
thereof pursuant to La. R.S. 9:5386 et seq., whether such insurance proceeds
now exist or arise in the future, and Mortgagor does hereby irrevocably appoint
Mortgagee, for the benefit as the true and lawful mandatory and
attorney-in-fact of

 

5

 

Mortgagor to carry out and enforce all of Mortgagor’s
right, title and interest in and to any or all of the insurance proceeds hereby
collaterally assigned); and

 

(7)     all extensions, improvements, betterments, renewals, substitutes
and replacements of and all additions and appurtenances to, the Land, the
Premises, the Improvements, the Personal Property, the Permits, Plans and
Warranties and the Leases, hereinafter acquired by or released to the Mortgagor
or constructed, assembled or placed by the Mortgagor on the Land, the Premises
or the Improvements, and all conversions of the security constituted thereby,
immediately upon such acquisition, release, construction, assembling, placement
or conversion, as the case may be, and in each such case, without any further
mortgage, deed of trust, conveyance, assignment or other act by the Mortgagor,
all of which shall become subject to the lien of this Mortgage as fully and
completely, and with the same effect, as though now owned by the Mortgagor and
specifically described herein.

 

TO HAVE AND TO HOLD the
Mortgaged Property unto the Mortgagee, its successors and assigns, for the
ratable benefit of the Secured Parties, forever, subject only to Liens
permitted under Section 6.02 of the Credit Agreement (the “Permitted
Encumbrances”) and to satisfaction and release as provided in Section 3.04
hereunder.

 

ARTICLE I

 

Representations, Warranties and Covenants of
Mortgagor

 

Mortgagor agrees, covenants, represents and/or
warrants as follows:

 

SECTION 1.01. Title,
Mortgage Lien. (a) Mortgagor has good and marketable fee simple title
to the Mortgaged Property, subject only to Permitted Encumbrances.

 

(b)    The execution and delivery of this Mortgage is within Mortgagor’s
limited liability company powers and has been duly authorized by all necessary
limited liability company and, if required, member action. This Mortgage has
been duly executed and delivered by Mortgagor and constitutes a legal, valid
and binding obligation of Mortgagor, enforceable in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium or
other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in
equity or at law.

 

(c)    The execution, delivery and recordation of this Mortgage (i) do
not require any consent or approval of, registration or filing with, or any
other action by, any Governmental Authority, except such as have been obtained
or made and are in full force and effect and except filings necessary to
perfect the lien of this Mortgage, (ii) will not violate any applicable
law or regulation or the organizational documents of Mortgagor or any order of
any Governmental Authority, (iii) will not violate or result in a default
under any indenture, agreement or other instrument binding upon Mortgagor or
its assets, or give rise to a right thereunder to require any payment to be
made by Mortgagor, and (iv) will not result in the creation or imposition
of any Lien on any asset of Mortgagor, except the lien of this Mortgage.

 

6

 

(d)    This Mortgage and the Uniform Commercial Code Financing
Statements described in Section 1.09 of this Mortgage, when duly recorded
in the public records identified in the Perfection Certificate will create a
valid, perfected and enforceable lien upon and security interest in all of the
Mortgaged Property.

 

(e)    Mortgagor will forever warrant and defend its title to the
Mortgaged Property, the rights of Mortgagee therein under this Mortgage and the
validity and priority of the lien of this Mortgage thereon against the claims
of all persons and parties except those having rights under Permitted
Encumbrances to the extent of those rights.

 

SECTION 1.02. Credit
Agreement. (a) This Mortgage is given pursuant to the Credit
Agreement. Mortgagor expressly covenants and agrees to pay when due, and to
timely perform, and to cause the other Loan Parties to pay when due, and to
timely perform, the Obligations in accordance with the terms of the Loan
Documents.

 

(b)   Mortgagor
and Mortgagee intend that, in addition to any other indebtedness or obligations
secured hereby, this Mortgage will secure unpaid balances of loan advances made
after this Mortgage is recorded. Such loan advances may be evidenced by a note
or notes of Mortgagor. In accordance with La. R.S. 9:4401 and Louisiana Civil
Code Article 3288, the maximum amount of the Obligations which are and
will be secured by this Mortgage is $445,000,000 (the “Maximum Amount”).

 

SECTION 1.03. Payment
of Taxes, and Other Obligations. (a) Mortgagor will pay and discharge
from time to time prior to the time when the same shall become delinquent, and
before any interest or penalty accrues thereon or attaches thereto, all Taxes
and other obligations with respect to the Mortgaged Property or any part
thereof or upon the Rents from the Mortgaged Property or arising in respect of
the occupancy, use or possession thereof in accordance with, and to the extent
required by, the Credit Agreement.

 

(b)   In the
event of the passage of any state, Federal, municipal or other governmental
law, order, rule or regulation subsequent to the date hereof (i) deducting
from the value of real property for the purpose of taxation any lien or
encumbrance thereon or in any manner changing or modifying the laws now in
force governing the taxation of this Mortgage or debts secured by mortgages or
deeds of trust (other than laws governing income, franchise and similar taxes
generally) or the manner of collecting taxes thereon and (ii) imposing a
tax to be paid by Mortgagee, either directly or indirectly, on this Mortgage or
any of the Loan Documents, or requiring an amount of taxes to be withheld or
deducted therefrom, Mortgagor will promptly (i) notify Mortgagee of such
event, (ii) enter into such further instruments as Mortgagee may determine
are reasonably necessary or desirable to obligate Mortgagor to make any
additional payments necessary to put the Lenders and Secured Parties in the
same financial position they would have been if such law, order, rule or
regulation had not been passed and (iii) make such additional payments to
Mortgagee for the benefit of the Lenders and Secured Parties.

 

SECTION 1.04. Maintenance
of Mortgaged Property. Mortgagor will maintain the Improvements and the
Personal Property in the manner required by the Credit Agreement.

 

7

 

SECTION 1.05. Insurance.
Mortgagor will keep or cause to be kept the Improvements and Personal Property
insured against such risks, and in the manner, described in Section 5.02
of the Credit Agreement. If any portion of Improvements constituting part of the
Mortgaged Property is located in an area identified as a special flood hazard
area by Federal Emergency Management Agency or other applicable agency,
Mortgagor will purchase flood insurance in an amount not less than the maximum
limit of coverage available under the National Flood Insurance Act of 1968, as
amended, with such additional privately placed coverage as Mortgagor deems
reasonable.

 

SECTION 1.06. Casualty
Condemnation/Eminent Domain. Mortgagor shall give Mortgagee prompt written
notice of any casualty or other damage to the Mortgaged Property or any
proceeding for the taking of the Mortgaged Property or any portion thereof or
interest therein under power of eminent domain or by condemnation or any
similar proceeding in accordance with, and to the extent required by, Section 5.05
of the Credit Agreement. Any Net Cash Proceeds received by or on behalf of the
Mortgagor in respect of any such casualty, damage or taking shall constitute
trust funds held by the Mortgagor for the benefit of the Secured Parties to be
applied to repair, restore or replace the Mortgaged Property or, if so
required, be applied in accordance with Section 2.13 of the Credit
Agreement.

 

SECTION 1.07. Assignment
of Leases and Rents. (a) Mortgagor hereby collectively assigns all of
its right title and interest in all Leases and Rents, together with any and all
extensions and renewals thereof for purposes of securing and discharging the
performance by Mortgagor of the Obligations up to the Maximum Amount. Mortgagor
has not assigned or executed any assignment of, and will not assign or execute
any assignment of, any Leases or the Rents payable thereunder to anyone other
than Mortgagee. It is the intention of the parties that the assignment
contained in this paragraph shall be a collateral assignment made in accordance
with and to the fullest extent permitted by La. R.S. 9:4401, and it is
expressly understood and agreed, anything to the contrary notwithstanding, that
Mortgagee shall not exercise any of the rights or powers conferred upon it by
this paragraph until an Event of Default shall exist and be continuing under
this Mortgage.

 

(b)    All
Leases shall be subordinate to the lien of this Mortgage. Mortgagor will not
enter into, modify or amend any Lease if such Lease, as entered into, modified
or amended, will not be subordinate to the lien of this Mortgage.

 

(c)    So
long as an Event of Default shall not have occurred and be continuing,
Mortgagor shall receive and collect the Rents accruing under any Lease; but
after the happening and during the continuance of any Event of Default,
Mortgagee may, at its option, receive and collect all Rents and enter upon the
Premises and Improvements through its officers, agents, employees or attorneys
for such purpose and for the operation and maintenance thereof. Mortgagor
hereby irrevocably authorizes and directs each tenant, if any, and each
successor, if any, to the interest of any tenant under any Lease, respectively,
to rely upon any notice of a claimed Event of Default sent by Mortgagee to any such
tenant or any of such tenant’s successors in interest, and thereafter to pay
Rents to Mortgagee without any obligation or right to inquire as to whether an
Event of Default actually exists and even if some notice to the contrary is
received from the Mortgagor, who shall have no right or claim against any such
tenant or successor in interest for any such Rents so paid to Mortgagee. Each
tenant or any of such tenant’s successors in interest

 

8

 

from whom Mortgagee or any officer, agent, attorney or employee of
Mortgagee shall have collected any Rents, shall be authorized to pay Rents to
Mortgagor only after such tenant or any of their successors in interest shall
have received written notice from Mortgagee that the Event of Default is no
longer continuing, unless and until a further notice of an Event of Default is
given by Mortgagee to such tenant or any of its successors in interest.

 

(d)   Mortgagee will not become a mortgagee in possession so long as it
does not enter or take actual possession of the Mortgaged Property. In
addition, Mortgagee shall not be responsible or liable for performing any of
the obligations of the landlord under any Lease, for any waste by any tenant,
or others, for any dangerous or defective conditions of any of the Mortgaged
Property, for negligence in the management, upkeep, repair or control of any of
the Mortgaged Property or any other act or omission by any other person.

 

(e)    Mortgagor shall furnish to Mortgagee, within 30 days after a
request by Mortgagee to do so, a written statement containing the names of all
tenants, subtenants and concessionaires of the Premises or Improvements, the
terms of any Lease, the space occupied and the rentals and/or other amounts
payable thereunder.

 

SECTION 1.08. Restrictions
on Transfers and Encumbrances. Mortgagor shall not directly or indirectly
sell, convey, alienate, assign, lease, sublease, license, mortgage, pledge,
encumber or otherwise transfer, create, consent to or suffer the creation of any
lien, charge or other form of encumbrance upon any interest in or any part of
the Mortgaged Property, or be divested of its title to the Mortgaged Property
or any interest therein in any manner or way, whether voluntarily or
involuntarily (other than resulting from a condemnation), or engage in any
common, cooperative, joint, time-sharing or other congregate ownership of all
or part thereof, except in each case in accordance with and to the extent
permitted by the Credit Agreement; provided, that Mortgagor may, in the
ordinary course of business and in accordance with reasonable commercial
standards, enter into easement or covenant agreements that relate to and/or
benefit the operation of the Mortgaged Property and that do not materially and
adversely affect the value, use or operation of the Mortgaged Property. If any
of the foregoing transfers or encumbrances results in an Asset Sale, any Net
Cash Proceeds received by or on behalf of the Mortgagor in respect thereof
shall constitute trust funds to be held by the Mortgagor for the benefit of the
Secured Parties and applied in accordance with Section 2.13 of the Credit
Agreement.

 

SECTION 1.09. Security
Agreement. This Mortgage is both a mortgage of real property and a grant of
a security interest in personal property, and shall constitute and serve as a “Security
Agreement” within the meaning of the uniform commercial code as adopted in the
state wherein the Premises are located (“UCC”). Mortgagor has hereby granted
unto Mortgagee a security interest in and to all the Mortgaged Property
described in this Mortgage that is not real property, and simultaneously with
the recording of this Mortgage, Mortgagor has filed or will file UCC financing
statements, and will file continuation statements prior to the lapse thereof,
at the appropriate offices in the jurisdiction of formation of the Mortgagor to
perfect the security interest granted by this Mortgage in all the Mortgaged
Property that is not real property and in the state which the Premises are
located to perfect Mortgagee’s security interest in any fixtures (as defined in
the UCC) located on the Premises. Mortgagor hereby appoints, following the
occurrence and continuation of an Event of Default, Mortgagee as its true and
lawful attorney-in-

 

9

 

fact and agent, for Mortgagor and in its name, place and stead, in any
and all capacities, to execute any document and to file the same in the
appropriate offices (to the extent it may lawfully do so), and to perform each
and every act and thing reasonably requisite and necessary to be done to
perfect the security interest contemplated by the preceding sentence. Mortgagee
shall have all rights with respect to the part of the Mortgaged Property that
is the subject of a security interest afforded by the UCC in addition to, but
not in limitation of, the other rights afforded Mortgagee hereunder and under
the Guarantee and Collateral Agreement.

 

SECTION 1.10. Filing
and Recording. Mortgagor will cause this Mortgage, the UCC financing
statements referred to in Section 1.09, any other security instrument
creating a security interest in or evidencing the lien hereof upon the
Mortgaged Property and each UCC continuation statement and instrument of
further assurance to be filed, registered or recorded and, if necessary,
refiled, rerecorded and reregistered, in such manner and in such places as may
be required by any present or future law in order to publish notice of and
fully to perfect the lien hereof upon, and the security interest of Mortgagee
in, the Mortgaged Property until this Mortgage is terminated and released in
full in accordance with Section 3.04 hereof. Mortgagor will pay all
filing, registration and recording fees, all Federal, state, county and
municipal recording, documentary or intangible taxes and other taxes, duties,
imposts, assessments and charges, and all reasonable expenses incidental to or
arising out of or in connection with the execution, delivery and recording of
this Mortgage, UCC continuation statements any mortgage supplemental hereto,
any security instrument with respect to the Personal Property, Permits, Plans
and Warranties and Proceeds or any instrument of further assurance.

 

SECTION 1.11. Further
Assurances. Upon request by Mortgagee, Mortgagor will, at the cost of
Mortgagor and without expense to Mortgagee, do, execute, acknowledge and
deliver all such further acts, deeds, conveyances, mortgages, assignments,
notices of assignment, transfers and assurances as Mortgagee shall from time to
time reasonably require for the better assuring, conveying, assigning,
transferring and confirming unto Mortgagee the property and rights hereby
conveyed or assigned or intended now or hereafter so to be, or which Mortgagor
may be or may hereafter become bound to convey or assign to Mortgagee, or for
carrying out the intention or facilitating the performance of the terms of this
Mortgage, or for filing, registering or recording this Mortgage, and on demand,
following the occurrence and continuation of an Event of Default Mortgagor will
also execute and deliver and hereby appoints Mortgagee as its true and lawful
attorney-in-fact and agent, for Mortgagor and in its name, place and stead, in
any and all capacities, to execute and file to the extent it may lawfully do
so, one or more financing statements, chattel mortgages or comparable security
instruments reasonably requested by Mortgagee to evidence more effectively the
lien hereof upon the Personal Property and to perform each and every act and
thing requisite and necessary to be done to accomplish the same.

 

SECTION 1.12. Additions
to Mortgaged Property. All right, title and interest of Mortgagor in and to
all extensions, improvements, betterments, renewals, substitutes and
replacements of, and all additions and appurtenances to, the Mortgaged Property
hereafter acquired by or released to Mortgagor or constructed, assembled or
placed by Mortgagor upon the Premises or the Improvements, and all conversions
of the security constituted thereby, immediately upon such acquisition,
release, construction, assembling, placement or conversion, as the case may be,
and in each such case without any further mortgage, conveyance, assignment or
other act by Mortgagor, shall become subject to the lien and security interest
of this Mortgage

 

10

 

 

as fully and completely and with the same effect as though now owned by
Mortgagor and specifically described in the grant of the Mortgaged Property
above, but at any and all times Mortgagor will execute and deliver to Mortgagee
any and all such further assurances, mortgages, conveyances or assignments
thereof as Mortgagee may reasonably require for the purpose of expressly and
specifically subjecting the same to the lien and security interest of this
Mortgage.

 

SECTION 1.13.  No
Claims Against Mortgagee.  Nothing contained in this Mortgage
shall constitute any consent or request by Mortgagee, express or implied, for
the performance of any labor or services or the furnishing of any materials or
other property in respect of the Mortgaged Property or any part thereof, nor as
giving Mortgagor any right, power or authority to contract for or permit the
performance of any labor or services or the furnishing of any materials or
other property in such fashion as would permit the making of any claim against
Mortgagee in respect thereof.

 

SECTION 1.14.  Fixture
Filing.  Certain portions of the Mortgaged Property are or will
become “fixtures” (as that term is defined in the UCC) on the Land. The real
property to which the fixtures relate is described in Exhibit B
attached hereto. The record owner of the real property described in Exhibit B
attached hereto is Mortgagor. The name, type of organization and jurisdiction
of organization of the debtor for purposes of any financing statement
concerning fixtures are the name, type of organization and jurisdiction of
organization of the Mortgagor set forth in the first paragraph of this
Mortgage, and the name of the secured party for purposes of this financing
statement is the name of the Mortgagee set forth in the first paragraph of this
Mortgage. The mailing address of the Mortgagor/debtor is the address of the
Mortgagor set forth in the first paragraph of this Mortgage. The mailing
address of the Mortgagee/secured party from which information concerning the
security interest hereunder may be obtained is the address of the Mortgagee set
forth in the first paragraph of this Mortgage. Mortgagor’s organizational
identification number is 3724403.

 

ARTICLE II

 

Defaults and Remedies

 

SECTION 2.01.  Events
of Default.  Any Event of Default under the Credit Agreement (as
such term is defined therein) shall constitute an Event of Default under this
Mortgage.

 

SECTION 2.02.  Demand for Payment.  If
an Event of Default shall occur and be continuing, then, upon written demand of
Mortgagee, Mortgagor will pay to Mortgagee all amounts due hereunder and under
the Credit Agreement and the Guarantee and Collateral Agreement and such
further amount as shall be sufficient to cover the costs and expenses of
collection, including attorneys’ fees, disbursements and expenses incurred by
Mortgagee, and Mortgagee shall be entitled and empowered to institute an action
or proceedings at law or in equity for the collection of the sums so due and
unpaid, to prosecute any such action or proceedings to judgment or final
decree, to enforce any such judgment or final decree against Mortgagor and to
collect, in any manner provided by law, all moneys adjudged or decreed to be
payable.

 

11

 

SECTION 2.03.  Rights
To Take Possession, Operate and Apply Revenues.  (a) If an
Event of Default shall occur and be continuing, Mortgagor shall, upon demand of
Mortgagee, forthwith surrender to Mortgagee actual possession of the Mortgaged
Property and, if and to the extent not prohibited by applicable law, Mortgagee
itself, or by such officers or agents as it may appoint, may then enter and
take possession of all the Mortgaged Property without the appointment of a
keeper or an application therefor, exclude Mortgagor and its agents and
employees wholly therefrom, and have access to the books, papers and accounts
of Mortgagor.

 

(b)    If Mortgagor shall for any reason fail to surrender or deliver
the Mortgaged Property or any part thereof after such demand by Mortgagee,
Mortgagee may to the extent not prohibited by applicable law, obtain a judgment
or decree conferring upon Mortgagee the right to immediate possession or
requiring Mortgagor to deliver immediate possession of the Mortgaged Property
to Mortgagee, to the entry of which judgment or decree Mortgagor hereby
specifically consents. Mortgagor will pay to Mortgagee, upon demand, all
reasonable expenses of obtaining such judgment or decree, including reasonable
compensation to Mortgagee’s attorneys and agents with interest thereon at the
rate per annum applicable to overdue amounts under the Credit Agreement (the “Interest
Rate”); and all such expenses and compensation shall, until paid, be secured by
this Mortgage.

 

(c)    Upon every such entry or taking of possession, Mortgagee may, to
the extent not prohibited by applicable law, hold, store, use, operate, manage
and control the Mortgaged Property, conduct the business thereof and, from time
to time, (i) make all necessary and proper maintenance, repairs, renewals,
replacements, additions, betterments and improvements thereto and thereon, (ii) purchase
or otherwise acquire additional fixtures, personalty and other property, (iii) insure
or keep the Mortgaged Property insured, (iv) manage and operate the
Mortgaged Property and exercise all the rights and powers of Mortgagor to the
same extent as Mortgagor could in its own name or otherwise with respect to the
same, or (v) enter into any and all agreements with respect to the
exercise by others of any of the powers herein granted Mortgagee, all as may
from time to time be directed or determined by Mortgagee to be in its best
interest and Mortgagor hereby appoints Mortgagee as its true and lawful
attorney-in-fact and agent, for Mortgagor and in its name, place and stead, in
any and all capacities, to perform any of the foregoing acts. Mortgagee may
collect and receive all the Rents, issues, profits and revenues from the
Mortgaged Property, including those past due as well as those accruing
thereafter, and, after deducting (i) all expenses of taking, holding,
managing and operating the Mortgaged Property (including compensation for the
services of all persons employed for such purposes), (ii) the costs of all
such maintenance, repairs, renewals, replacements, additions, betterments,
improvements, purchases and acquisitions, (iii) the costs of insurance, (iv) such
taxes, assessments and other similar charges as Mortgagee may at its option
pay, (v) other proper charges upon the Mortgaged Property or any part
thereof and (vi) the compensation, expenses and disbursements of the
attorneys and agents of Mortgagee, Mortgagee shall apply the remainder of the
moneys and proceeds so received first to the payment of the Mortgagee for the
satisfaction of the Obligations, and second, if there is any surplus, to Mortgagor,
subject to the entitlement of others thereto under applicable law.

 

(d)    Whenever, before any sale of the Mortgaged Property under Section 2.06,
all Obligations that are then due shall have been paid and all Events of
Default fully cured, Mortgagee will surrender possession of the Mortgaged
Property back to Mortgagor, its

 

12

 

successors or assigns. The same right of taking
possession shall, however, arise again if any subsequent Event of Default shall
occur and be continuing.

 

SECTION 2.04.  Right
To Cure Mortgagor’s Failure to Perform.  Should Mortgagor fail in
the payment, performance or observance of any term, covenant or condition
required by this Mortgage or the Credit Agreement (with respect to the
Mortgaged Property), Mortgagee may pay, perform or observe the same, and all
payments made or costs or expenses incurred by Mortgagee in connection
therewith shall be secured hereby and shall be, without demand, immediately
repaid by Mortgagor to Mortgagee with interest thereon at the Interest Rate.
Mortgagee shall be the judge using reasonable discretion of the necessity for
any such actions and of the amounts to be paid. Mortgagee is hereby empowered
to enter and to authorize others to enter upon the Premises or the Improvements
or any part thereof for the purpose of performing or observing any such
defaulted term, covenant or condition without having any obligation to so
perform or observe and without thereby becoming liable to Mortgagor, to any person
in possession holding under Mortgagor or to any other person.

 

SECTION 2.05.  Right to a Keeper.  If an Event of Default has occurred and is
continuing, Mortgagee may, at its election and by or through any nominee,
assignee or otherwise, make ex parte application to a court of competent
jurisdiction for, and obtain from such court as a matter of strict right and
without notice to Mortgagor or regard to the adequacy of the Mortgaged Property
for the repayment of the Obligations, the appointment of a keeper of the
Mortgaged Property. If the Mortgaged Property or any part thereof, is seized as
an incident to an action for the recognition or enforcement of this Mortgage by
executory process, ordinary process, sequestration, writ of fieri
facias or otherwise, Mortgagor and Mortgagee agree that the
court issuing any such order shall, if petitioned for by Mortgagee, direct the
applicable sheriff to appoint as a keeper of the Mortgaged Property Mortgagee
or any agent designated by Mortgagee or any other person named by Mortgagee at
the time such seizure is effected. This designation is pursuant to La. R.S.
9:5136 through 5140.2, inclusive, as the same may be amended from time to time,
and Mortgagee shall be entitled to all the rights and benefits afforded
thereunder. It is hereby agreed that the keeper shall be entitled to receive
its reasonable compensation in addition to its costs and expenses incurred in
the administration or preservation of the Mortgaged Property. The designation
of keeper made herein shall not be deemed to require Mortgagee to provoke the
appointment of such keeper. Nothing herein is to be construed to deprive
Mortgagee of any other right, remedy or privilege it may have under law to have
a keeper appointed. Mortgagor shall pay to Mortgagee upon demand all reasonable
expenses, including keeper’s fees, reasonable attorney’s fees and
disbursements, costs and agent’s compensation incurred pursuant to the
provisions of this Section 2.05; and all such expenses shall be secured by
this Mortgage and shall be, without demand, immediately repaid by Mortgagor to
Mortgagee with interest thereon. The appointment of such keeper, Mortgagee or
other appointee by virtue of any court order, statue or regulation will not
impair or in any manner prejudice the rights of Mortgagee to receive payment of
the Rents pursuant to Section 1.07(c). Any advance by Mortgagee in
connection with any such keepership will be secured by this Mortgage. Any such
keeper shall have the usual powers and duties of keepers in similar cases, including
the full power to rent, maintain and otherwise operate the Property upon such
terms as may be approved by the court, and shall apply such Rents in accordance
with the provisions of Section 2.08.

 

13

 

SECTION 2.06.  Foreclosure and Sale.  (a) If an Event of Default shall occur
and be continuing, Mortgagee may elect to sell the Mortgaged Property or any
part of the Mortgaged Property by exercise of the power of foreclosure or of
sale granted to Mortgagee by applicable law or this Mortgage. In such case,
Mortgagee may commence a civil action to foreclose this Mortgage, or it may
proceed and sell the Mortgaged Property to satisfy any Obligation. Mortgagee or
an officer appointed by a judgment of foreclosure to sell the Mortgaged
Property, may sell all or such parts of the Mortgaged Property as may be chosen
by Mortgagee at the time and place of sale fixed by it in a notice of sale,
either as a whole or in separate lots, parcels or items as Mortgagee shall deem
expedient, and in such order as it may determine, at public auction to the
highest bidder. Mortgagee or an officer appointed by a judgment of foreclosure
to sell the Mortgaged Property may postpone any foreclosure or other sale of
all or any portion of the Mortgaged Property by public announcement at such
time and place of sale, and from time to time thereafter may postpone such sale
by public announcement or subsequently noticed sale. Without further notice,
Mortgagee or an officer appointed to sell the Mortgaged Property may make such
sale at the time fixed by the last postponement, or may, in its discretion,
give a new notice of sale. Any person, including Mortgagor or Mortgagee or any
designee or affiliate thereof, may purchase at such sale.

 

(b)    The Mortgaged Property may be sold subject to unpaid taxes and
Permitted Encumbrances, and, after deducting all costs, fees and expenses of
Mortgagee (including costs of evidence of title in connection with the sale),
Mortgagee or an officer that makes any sale shall apply the proceeds of sale in
the manner set forth in Section 2.08.

 

(c)    Any foreclosure or other sale of less than the whole of the
Mortgaged Property or any defective or irregular sale made hereunder shall not
exhaust the power of foreclosure or of sale provided for herein; and subsequent
sales may be made hereunder until the Obligations have been satisfied, or the
entirety of the Mortgaged Property has been sold.

 

(d)    If an Event of Default shall occur and be continuing, Mortgagee
may instead of, or in addition to, exercising the rights described in Section 2.06(a) above
and either with or without entry or taking possession as herein permitted,
proceed by a suit or suits in law or in equity or by any other appropriate
proceeding or remedy (i) to specifically enforce payment of some or all of
the Obligations, or the performance of any term, covenant, condition or
agreement of this Mortgage or any other Loan Document or any other right, or (ii) to
pursue any other remedy available to Mortgagee, all as Mortgagee shall
determine most effectual for such purposes.

 

SECTION 2.07.  Other Remedies.  (a) In case an Event of Default shall
occur and be continuing, Mortgagee may also exercise, to the extent not
prohibited by law, any or all of the remedies available to a secured party
under the UCC.

 

(b)   In
connection with a sale of the Mortgaged Property or any Personal Property and
the application of the proceeds of sale as provided in Section 2.08,
Mortgagee shall be entitled to enforce payment of and to receive up to the
principal amount of the Obligations, plus all other charges, payments and costs
due under this Mortgage, and to recover a deficiency judgment for any portion
of the aggregate principal amount of the Obligations remaining unpaid, with interest.

 

14

 

SECTION 2.08.  Application of Sale Proceeds and Rents.  After any foreclosure sale of all or any
of the Mortgaged Property, Mortgagee shall receive and apply the proceeds of
the sale together with any Rents that may have been collected and any other
sums that then may be held by Mortgagee under this Mortgage in accordance with
the terms and provisions of Section 5.02 of the Guarantee and Collateral
Agreement.

 

The Mortgagee shall have
absolute discretion as to the time of application of any such proceeds, moneys
or balances in accordance with this Mortgage. Upon any sale of the Mortgaged
Property by the Mortgagee (including pursuant to a power of sale granted by
statute or under a judicial proceeding), the receipt of the Mortgagee or of the
officer making the sale shall be a sufficient discharge to the purchaser or
purchasers of the Mortgaged Property so sold and such purchaser or purchasers
shall not be obligated to see to the application of any part of the purchase
money paid over to the Mortgagee or such officer or be answerable in any way
for the misapplication thereof.

 

SECTION 2.09.  Mortgagor as Tenant Holding Over.  If Mortgagor remains in possession of any of
the Mortgaged Property after any foreclosure sale by Mortgagee, at Mortgagee’s
election Mortgagor shall be deemed a tenant holding over and shall forthwith
surrender possession to the purchaser or purchasers at such sale or be
summarily dispossessed or evicted according to provisions of law applicable to
tenants holding over.

 

SECTION 2.10.  Waiver of Appraisement, Valuation, Stay,
Extension and Redemption Laws.  Mortgagor
waives, to the extent not prohibited by law, (i) the benefit of all laws
now existing or that hereafter may be enacted (x) providing for any
appraisement or valuation of any portion of the Mortgaged Property and/or (y) in
any way extending the time for the enforcement or the collection of amounts due
under any of the Obligations or creating or extending a period of redemption
from any sale made in collecting said debt or any other amounts due Mortgagee, (ii) any
right to at any time insist upon, plead, claim or take the benefit or advantage
of any law now or hereafter in force providing for any homestead exemption,
stay, statute of limitations, extension or redemption, or sale of the Mortgaged
Property as separate tracts, units or estates or as a single parcel in the
event of foreclosure or notice of deficiency, and (iii) all rights of
redemption, valuation, appraisement, stay of execution, notice of election to
mature or declare due the whole of or each of the Obligations and marshaling in
the event of foreclosure of this Mortgage.

 

To the extent permitted
under applicable Louisiana law, Mortgagor waives in favor of Mortgagee any and
all homestead exemptions and other exemptions of seizure or otherwise to which
Mortgagor is or may be entitled under the constitution and statutes of the
State of Louisiana insofar as the Mortgaged Property is concerned. Mortgagor
further waives (i) the benefit of appraisement as provided in Louisiana
Code of Civil Procedure Articles 2332, 2336, 2723 and 2724, and all other laws
conferring the same; (ii) the demand and three days’ delay afforded by the
Louisiana Code of Civil Procedure Articles 2639 and 2721; (iii) the notice
of seizure required by Louisiana Code of Civil Procedure Articles 2293 and
2721; (iv) the three days’ delay provided by Louisiana Code of Civil
Procedure Articles 2331 and 2772; and (v) the benefit of the other
provisions of Louisiana Code of Civil Procedure Articles 2331, 2722 and 2723,
not specifically mentioned above.

 

15

Any and all declarations of
fact made by authentic act before a notary public in the presence of two
witnesses by persons declaring that such facts lie within his or her knowledge
shall constitute authentic evidence of such facts for purposes of executory
process.

 

For purposes of foreclosure
under Louisiana executory process procedures, Mortgagor hereby acknowledges the
Maximum Amount and confesses judgment in favor of Mortgagee for the full and
true sum of the Maximum Amount.

 

SECTION 2.1l.  Discontinuance of Proceedings.  In case Mortgagee shall proceed to enforce any
right, power or remedy under this Mortgage by foreclosure, entry or otherwise,
and such proceedings shall be discontinued or abandoned for any reason, or
shall be determined adversely to Mortgagee, then and in every such case
Mortgagor and Mortgagee shall be restored to their former positions and rights
hereunder, and all rights, powers and remedies of Mortgagee shall continue as
if no such proceeding had been taken.

 

SECTION 2.12.  Suits To Protect the Mortgaged Property.  Mortgagee shall have power (a) to
institute and maintain suits and proceedings to prevent any impairment of the
Mortgaged Property by any acts that may be unlawful or in violation of this
Mortgage, (b) to preserve or protect its interest in the Mortgaged
Property and in the Rents arising therefrom and (c) to restrain the
enforcement of or compliance with any legislation or other governmental
enactment, rule or order that may be unconstitutional or otherwise invalid
if the enforcement of or compliance with such enactment, rule or order
would impair the security or be prejudicial to the interest of Mortgagee
hereunder.

 

SECTION 2.13.  Filing Proofs of Claim.  In case of any receivership, insolvency,
bankruptcy, reorganization, arrangement, adjustment, composition or other
proceedings affecting Mortgagor, Mortgagee shall, to the extent permitted by
law, be entitled to file such proofs of claim and other documents as may be
necessary or advisable in order to have the claims of Mortgagee allowed in such
proceedings for the Obligations secured by this Mortgage at the date of the
institution of such proceedings and for any interest accrued, late charges and
additional interest or other amounts due or that may become due and payable
hereunder after such date.

 

SECTION 2.14.  Possession by Mortgagee.  Notwithstanding the appointment of any keeper,
liquidator or trustee of Mortgagor, any of its property or the Mortgaged
Property, Mortgagee shall be entitled, to the extent not prohibited by law, to
remain in possession and control of all parts of the Mortgaged Property now or
hereafter granted under this Mortgage to Mortgagee in accordance with the terms
hereof and applicable law.

 

SECTION 2.15.  Waiver.  (a) No delay or failure by Mortgagee to
exercise any right, power or remedy accruing upon any breach or Event of
Default shall exhaust or impair any such right, power or remedy or be construed
to be a waiver of any such breach or Event of Default or acquiescence therein;
and every right, power and remedy given by this Mortgage to Mortgagee may be
exercised from time to time and as often as may be deemed expedient by
Mortgagee. No consent or waiver by Mortgagee to or of any breach or Event of
Default by Mortgagor in the performance of the Obligations shall be deemed or
construed to be a consent or waiver to or of any other breach or Event of Default
in the performance of the same or of any other Obligations by Mortgagor
hereunder. No failure on the part of Mortgagee to complain of any act or
failure to

 

16

 

act or to declare an Event of Default, irrespective of how long such
failure continues, shall constitute a waiver by Mortgagee of its rights
hereunder or impair any rights, powers or remedies consequent on any future
Event of Default by Mortgagor.

 

(b)   Even if
Mortgagee (i) grants some forbearance or an extension of time for the
payment of any sums secured hereby, (ii) takes other or additional
security for the payment of any sums secured hereby, (iii) waives or does
not exercise some right granted herein or under the Loan Documents, (iv) releases
a part of the Mortgaged Property from this Mortgage, (v) agrees to change
some of the terms, covenants, conditions or agreements of any of the Loan
Documents, (vi) consents to the filing of a map, plat or replat affecting
the Premises, (vii) consents to the granting of an easement or other right
affecting the Premises or (viii) makes or consents to an agreement
subordinating Mortgagee’s lien on the Mortgaged Property hereunder; no such act
or omission shall preclude Mortgagee from exercising any other right, power or
privilege herein granted or intended to be granted in the event of any breach
or Event of Default then made or of any subsequent default; nor, except as
otherwise expressly provided in an instrument executed by Mortgagee, shall this
Mortgage be altered thereby. In the event of the sale or transfer by operation
of law or otherwise of all or part of the Mortgaged Property, Mortgagee is
hereby authorized and empowered to deal with any vendee or transferee with
reference to the Mortgaged Property secured hereby, or with reference to any of
the terms, covenants, conditions or agreements hereof, as fully and to the same
extent as it might deal with the original parties hereto and without in any way
releasing or discharging any liabilities, obligations or undertakings.

 

SECTION 2.16.  Waiver of Trial by Jury.  To the fullest extent permitted by applicable
law, Mortgagor and Mortgagee each hereby irrevocably and unconditionally waive
trial by jury in any action, claim, suit or proceeding relating to this Mortgage
and for any counterclaim brought therein. Mortgagor hereby waives all rights to
interpose any counterclaim in any suit brought by Mortgagee hereunder and all
rights to have any such suit consolidated with any separate suit, action or
proceeding.

 

SECTION 2.17.  Remedies Cumulative.  No right, power or remedy conferred upon or
reserved to Mortgagee by this Mortgage is intended to be exclusive of any other
right, power or remedy, and each and every such right, power and remedy shall
be cumulative and concurrent and in addition to any other right, power and
remedy given hereunder or now or hereafter existing at law or in equity or by
statute.

 

ARTICLE III

 

Miscellaneous

 

SECTION 3.01.  Partial Invalidity.  In the event any one or more of the provisions
contained in this Mortgage shall for any reason be held to be invalid, illegal
or unenforceable in any respect, such validity, illegality or unenforceability
shall, at the option of Mortgagee, not affect any other provision of this
Mortgage, and this Mortgage shall be construed as if such invalid, illegal or
unenforceable provision had never been contained herein or therein.

 

17

 

SECTION 3.02.  Notices.  All notices and communications hereunder shall
be in writing and given to Mortgagor in accordance with the terms of the Credit
Agreement and to the Mortgagee as provided in the Credit Agreement.

 

SECTION 3.03.  Successors and Assigns.  All of the grants, covenants, terms,
provisions and conditions herein shall run with the Premises and the
Improvements and shall apply to, bind and inure to, the benefit of the
permitted successors and assigns of Mortgagor and the successors and assigns of
Mortgagee.

 

SECTION 3.04.  Satisfaction and Cancelation.  (a) The encumbrance of the Mortgaged
Property as security created and consummated by this Mortgage shall terminate
when all the Loan Document Obligations (other than wholly contingent
indemnification and reimbursement obligations) have been indefeasibly paid in
full and the Lenders have no further commitment to lend under the Credit
Agreement, the aggregate L/C Exposure has been reduced to zero and the Issuing
Banks have no further obligations to issue Letters of Credit under the Credit
Agreement.

 

(b)    Upon a sale or financing by Mortgagor of all or any portion of
the Mortgaged Property that is permitted by the Credit Agreement and the
application of the Net Cash Proceeds of such sale or financing in accordance
with the terms of the Credit Agreement, the lien of this Mortgage shall be
released from the applicable portion of the Mortgaged Property. Mortgagor shall
give the Mortgagee reasonable written notice of any sale or financing of the
Mortgaged Property prior to the closing of such sale or financing.

 

(c)    In connection with any termination or release pursuant to
paragraph (a), the Mortgage shall be marked “satisfied” by the Mortgagee, and
this Mortgage shall be canceled of record at the request and at the expense of
the Mortgagor. Mortgagee shall execute any documents reasonably requested by
Mortgagor to accomplish the foregoing or to accomplish any release contemplated
by this Section 3.04 and Mortgagor will pay all costs and expenses,
including reasonable attorneys’ fees, disbursements and other charges, incurred
by Mortgagee in connection with the preparation and execution of such
documents.

 

SECTION 3.05.  Definitions.  As used in this Mortgage, the singular
shall include the plural as the context requires and the following words and
phrases shall have the following meanings: (a) “including” shall mean “including
but not limited to”; (b) “provisions” shall mean “provisions, terms,
covenants and/or conditions”; (c) “lien” shall mean “lien, charge,
encumbrance, security interest, mortgage or deed of trust”; (d) “obligation”
shall mean “obligation, duty, covenant and/or condition”; and (e) “any of
the Mortgaged Property” shall mean “the Mortgaged Property or any part thereof
or interest therein”. Any act that Mortgagee is permitted to perform hereunder
may be performed at any time and from time to time by Mortgagee or any person
or entity designated by Mortgagee. Any act that is prohibited to Mortgagor
hereunder is also prohibited to all lessees of any of the Mortgaged Property.
Each appointment of Mortgagee as attorney-in-fact for Mortgagor under the
Mortgage is irrevocable, with power of substitution and coupled with an
interest. Subject to the applicable provisions hereof, Mortgagee has the right
to refuse to grant its consent, approval or acceptance or to indicate its satisfaction,
in its sole discretion, whenever such consent, approval, acceptance or
satisfaction is required hereunder.

 

18

 

SECTION 3.06.  Multisite Real Estate Transaction.  Mortgagor acknowledges that this Mortgage is
one of a number of Other Mortgages and Security Documents that may be granted
to secure the Obligations. Mortgagor agrees that the lien of this Mortgage
shall be absolute and unconditional and shall not in any manner be affected or
impaired by any acts or omissions whatsoever of Mortgagee, and without limiting
the generality of the foregoing, the lien hereof shall not be impaired by any
acceptance by the Mortgagee of any security for or guarantees of any of the
Obligations hereby secured, or by any failure, neglect or omission on the part
of Mortgagee to realize upon or protect any Obligation or indebtedness hereby
secured or any collateral security therefor including the Other Mortgages and
other Security Documents. The lien hereof shall not in any manner be impaired
or affected by any release (except as to the property released), sale, pledge,
surrender, compromise, settlement, renewal, extension, indulgence, alteration,
changing, modification or disposition of any of the Obligations secured or of any
of the collateral security therefor, including the Other Mortgages and other
Security Documents or of any guarantee thereof, and Mortgagee may at its
discretion foreclose, exercise any power of sale, or exercise any other remedy
available to it under any or all of the Other Mortgages and other Security
Documents without first exercising or enforcing any of its rights and remedies
hereunder. Such exercise of Mortgagee’s rights and remedies under any or all of
the Other Mortgages and other Security Documents shall not in any manner impair
the indebtedness hereby secured or the lien of this Mortgage and any exercise
of the rights or remedies of Mortgagee hereunder shall not impair the lien of
any of the Other Mortgages and other Security Documents or any of Mortgagee’s
rights and remedies thereunder. Mortgagor specifically consents and agrees that
Mortgagee may exercise its rights and remedies hereunder and under the Other
Mortgages and other Security Documents separately or concurrently and in any
order that it may deem appropriate and waives any rights of subrogation.

 

SECTION 3.07.  No Oral Modification.  This Mortgage may not be changed or terminated
orally. Any agreement made by Mortgagor and Mortgagee after the date of this
Mortgage relating to this Mortgage shall be superior to the rights of the
holder of any intervening or subordinate Mortgage, lien or encumbrance.

 

SECTION 3.08.  Credit Agreement Controls.  In the event of any conflict between the terms
and provisions set forth in this Mortgage and those set forth in the Credit
Agreement, the terms and provisions of the Credit Agreement shall supersede and
control the terms and provisions of this Mortgage.

 

ARTICLE IV

 

Particular Provisions

 

This Mortgage is subject to
the following provisions relating to the particular laws of the state wherein
the Premises are located:

 

SECTION 4.01.  Applicable Law; Certain Particular
Provisions.  This Mortgage shall be
governed by and construed in accordance with the internal law of the state
where the Mortgaged Property is located, except that Mortgagor expressly
acknowledges that by their terms, the Credit

 

19

 

Agreement and other Loan Documents (aside from those
Other Mortgages to be recorded outside New York) shall be governed by the
internal law of the State of New York, without regard to principles of conflict
of law. Mortgagor and Mortgagee agree to submit to jurisdiction and the laying
of venue for any suit on this Mortgage in the state where the Mortgaged Property
is located.

 

20

 

 

Mortgagor has, on the date
first written above, caused this instrument to be duly executed and delivered
by authority duly given in the presence of the undersigned Notary for the
County and State first written above, and in the presence of the two undersigned
competent witnesses.

 

	
  WITNESSES:

  	
  INO
  THERAPEUTICS LLC,

  
	
   

  	
  A
  Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Daniel Tassé

  
	
  Scott Charles

  	
   

  	
   

  	
  Name:

  
	
  Print Name:

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Christina Keeney

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
   

  	
   

  	
   

  

 

 

	
   

  	
  /s/ Devi Kawalek

  	
   

  
	
   

  	
  Notary Public

  	
   

  
	
   

  	
  Printed Name:

  	
   

  	
   

  
	
   

  	
  My Commission expires:

  	
   

  	
   

  
	
   

  	
  Notarial Identification
  Number (if applicable)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DEVI KAWALEK

  	
   

  
	
   

  	
  Notary Public, State of New York

  	
   

  
	
   

  	
  No. 01KA4702105

  	
   

  
	
   

  	
  Qualified in Richmond County

  	
   

  
	
   

  	
  Certificate Filed in New York County

  	
   

  
	
   

  	
  Commission
  Expires 02/28/2014

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Signature Page to
  Mortgage]

  	
   

  
						

 

 

EXHIBIT
A

 

AUTHORIZING
RESOLUTIONS

 

The undersigned certifying
officer of INO Therapeutics, LLC (the “Company”), a Delaware limited
liability company, does hereby certify that the resolutions attached hereto
were adopted by the sole member of the Company and remain in effect on the date
hereof.

 

	
   

  	
   

  	
  /s/ Daniel Tassé

  
	
   

  	
   

  	
  CERTIFYING OFFICER

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  

 

 

EXHIBIT B

 

Description of the Land

 

PARCEL AC-2-A

 

A CERTAIN TRACT OR PARCEL OF GROUND, situated in the Parish of West
Baton Rouge, State of Louisiana, in that subdivision known as WESTPORT, and
being designated as TRACT “AC-2-A” of the Resubdivision of TRACT “AC-2” on a
map prepared by Stevens Engineering entitled “Final Plat of Tracts AC-2-A and
AC-2-B Westport being the Resubdivision of Tract AC-2 Located in Sections 68 &
69, T7S-R12E, Southeastern Land District, West Baton Rouge Parish, Louisiana,
for The BOC Group, Inc.” dated February 20, 1998, a copy of which is
on file and of record in Map Book 4, Entry 221 of the official records of West
Baton Rouge Parish, Louisiana, said tract having such size, shape and
dimensions as shown on said map, said tract or parcel of ground being the same
property more particularly described as follows:

 

A certain parcel or tract
of land located in Sections 68 & 69, Township 7 South, Range 12 East,
West Baton Rouge Parish Louisiana, and being more particularly described as
follows:

 

Commence at a point, which is the intersection of the South right of
way line of Commercial Drive with the West right of way line of Allendale
Drive:

 

Thence proceed S 02°25’25” E a distance of 300.00’ to a point;

 

Thence proceed N 87°34’35” E a distance of 80.00’ to a point;

 

Thence proceed S 02°25’25” E a distance of 35.00’ to a point, the
Actual Point of Beginning;

 

Thence proceed N 87°34’35” E a distance of 300.62’ to a point;

 

Thence proceed S 02°25’25” E a distance of 200.22’ to a point;

 

Thence proceed S 87°34’35” W a distance of 11.71’ to a point;

 

Thence proceed S 02°25’25” E a distance of 199.78’ to a point;

 

Thence proceed N 87°34’35” E a distance of 11.09’ to a point;

 

Thence proceed S 02°25’25” E a distance of 284.29’ to a point;

 

Thence proceed with a curve turning to the right with an arc length of
399.48’;

 

with a radius of 5579.58’, with a chord bearing of N 67°49’05” W, with
a chord length of 399.39’ to a point;

 

Thence proceed N 65°45”43” W a distance of 41.26’ to a point;

 

Thence proceed N 02°25’25” W a distance of 349.48’ to a point;

 

Thence proceed N 87°34’35” E a distance of 100.00’ to a point;

 

23

 

Thence proceed N 02°25’25” W a distance of 150.00’ to
a point, the Actual Point of Beginning;

 

and

 

PARCEL B

 

A certain parcel or tract of land, located in
Sections 68 & 93, Township 7 South, Range 12 East, West Baton Rouge
Parish, Louisiana, being more particularly described as follows:

 

Commence at a point which is the intersection of the South right of way
line of Commercial Drive and the West right of way line of Allendale Drive the
actual Point of Beginning:

 

Thence proceed S02°25’25”E a distance of 300.00’ to a point;

 

Thence proceed S87°34’35”W along and fronting on a 35’ railroad
servitude a distance of 182.74’to a point;

 

Thence proceed along and fronting on a 35’ railroad servitude, with a
curve turning to the right with an arc length of 650.72’, with a radius of
556.19’ with a chord bearing of N58°54’23”W with a chord length of 614.24’;

 

Thence proceed with a curve turning to the left with an arc length of
229.37’, with a radius of 664.79’, with a chord bearing of S82° 32’22”E. with a
chord length of 228.23’;

 

Thence proceed N87°34’35”E a distance of 470.00’ to a point, which is
the Point of Beginning.

 

The above described Parcel B fronts on and is bounded by a 35’ railroad
servitude and right-a-way on its southerly and westerly sides;

 

and

 

PARCEL F-l

 

A certain parcel or tract of land, located in
Sections 68, 69, 93 & 94, Township 7 South, Range 12 East, West Baton
Rouge Parish, Louisiana, being more particularly described as follows:

 

Commence at a point which is the intersection of the
South right of way line of Commercial Drive and the East right of way line of
Allendale Drive:

 

Thence proceed S02°25’25”E a distance of 335.00’ to a point, the actual
Point of Beginning;

 

Thence proceed S02°25’25”E a distance of 150.00’ to a point;

 

Thence proceed S87°34’35”W a distance of 100.00’ to a point;

 

Thence proceed S02°25’25”E a distance of 349.48’ to a point;

 

Thence proceed N65°46’03”W a distance of 389.20’ to a point;

 

24

 

Thence proceed N58°14’46”W a distance of 429.61’ to a point;

 

Thence proceed N03°07’19”W a distance of 447.98’ to a point;

 

Thence proceed along and fronting on a 35’ railroad servitude, with a curve
turning to the left with an arc length of 695.89’, with a radius of 591.19’,
with a chord bearing of S58°42’07”E, with a chord length of 656.41;

 

Thence proceed N87°34’35”E along and fronting on a 35’ railroad
servitude, a distance of 262.74’ to a point, which is the Point of Beginning;

 

The above described Parcel F-I fronts on and is bounded by a 35’
railroad servitude and right-a-way on its northerly side;

 

and

 

PARCEL Z SERVITUDE

 

A perpetual servitude of passage in favor of
and for the benefit of the above described Parcels F-l and AC-2-A, as shown on
the survey by Baton Rouge Land Surveying, Inc., dated December 21,
2001, in, on, over, across, through, under and above the following described
property, to wit:

 

That certain parcel of ground, situated in
the Parish of West Baton Rouge, State of Louisiana, in Sections 68, 69 and 93,
Township 7 South, Range 12 East, designated as Parcel Z on the said survey by
Baton Rouge Land Surveying, Inc. dated December 21, 2001, a copy of
which is attached hereto and made a part hereof, including, without limitation,
that portion of Parcel Z which is bounded on the north by Allendale Drive, on
the south by said Parcel F-l, on the east by the southerly extension of the
easterly right-of-way line of Allendale Drive, south 02°25’25” east, a distance
of 35’ across Parcel Z to the northerly property line of Parcel F- 1, and on
the west by the southerly extension of the westerly right-of-way line of
Allendale Drive, south 02°25’25” east a distance of 35’ across Parcel Z from
the northerly right-of-way line of Allendale Drive to the northerly property
line of said Parcel F-I;

 

all as more particularly described on the
survey of Baton Rouge Land Surveying, Inc., dated March 23, 2007.

 

The improvements bear municipal number 1060
Allendale Drive, Port Allen, LA 70767.

 

25

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