Document:

Exhibit
10.1

 

Performance-Based Bonus Plan

 

Jersey Shore State Bank

 

Effective for the calendar
year beginning on  January 1, 2010

and approved by the Board
of Directors on March 23, 2010

 

 

Contents

 

	
  I.

  	
   

  	
  Purpose

  
	
   

  	
   

  	
   

  
	
  II.

  	
   

  	
  General Description

  
	
   

  	
   

  	
   

  
	
  III.

  	
   

  	
  Definition of Terms

  
	
   

  	
   

  	
   

  
	
  IV.

  	
   

  	
  Plan Administration

  
	
   

  	
   

  	
   

  
	
  V.

  	
   

  	
  Plan Participation

  
	
   

  	
   

  	
   

  
	
  VI.

  	
   

  	
  Operating Rules

  
	
   

  	
   

  	
   

  
	
  VII.

  	
   

  	
  Summary of Plan Parameters

  
	
   

  	
   

  	
   

  
	
  VIII.

  	
   

  	
  Summary
  of Performance Objectives

  

 

 

I.  Purpose

 

The purpose of the Plan
is to provide at-risk compensation awards to officers, managers, and employees
who, through high levels of performance, contribute to the success and
profitability of the Bank.  The Plan is
designed to support organizational objectives and financial goals, as set forth
in the Strategic Business Plan and the Financial Plan, by making available
additional, variable, and contingent compensation, in the form of cash awards.

 

II.  General Description

 

The Plan is based upon the achievement of required financial targets, and
other defined objectives, before any performance-based bonus award is
considered.  The Plan specifies goals
that are consistent with those contained in the Strategic Business Plan and the
Financial Plan.

 

The calculation of any cash bonuses that may be payable to the Participants,
and the Target Results, shall be constructed to integrate the interests of
shareholders, including shareholders of Penns Woods, with those of the
Participants.  The Target Results are
intended to support a level of Performance-Based Bonus Awards that will assist
the Bank to attract, retain, and motivate high-quality personnel and support
the continued growth and profitability of the Bank.

 

The Plan is established to augment regular salary and benefits programs
already in existence.  The Plan is not
meant to be a substitute for salary increases but supplemental to base salary
and, as stated, a reward for performance that contributes to outstanding levels
of long-term achievement.

 

Except to the extent preempted by federal law, this Plan document shall be
construed, administered, and enforced in accordance with the domestic internal
law of the Commonwealth of Pennsylvania.

 

III.  Definition of Terms

 

A.                “Bank” shall mean Jersey Shore State
Bank, excluding any subsidiaries.

 

B.                  “Beneficiary” shall mean the beneficiary
designated by the Participant.  All such
Beneficiaries shall be natural persons who have reached the age of majority at
the time they are so designated.

 

C.                  “Board” shall mean the board of directors
of the Bank.

 

D.                 “Committee” shall mean the Compensation
and Benefits Committee of the Board.

 

1

 

E.                   “Eligible Compensation” shall mean, for
the purpose of this Plan, a participating employee’s Form W-2 gross wages
net of any amount included as a result of the payment of any prior year
Performance-Based Bonus Award or any other bonus award.

 

F.                   “Eligible Employee” shall mean a
full-time employee of the Bank (exclusive of commissioned employees) or a
part-time employee who is eligible to participate in the Retirement Plans, as
well as employees who have a minimum of one (1) year of service with the
Bank in which they worked a minimum of 1,000 hours but do not yet meet all of
the eligibility requirements for participation in Retirement Plans.

 

G.                  “Financial Plan” shall mean the profit
plan, including quantitative objectives, established by the Bank.

 

H.                 “Participant” shall mean an Eligible
Employee who the Committee has selected to participate in the Plan.

 

I.                      “Penns Woods” shall mean Penns Woods Bancorp, Inc.,
the parent holding company of the Bank.

 

J.                     “Performance-Based Bonus Award” shall
mean an award of a cash bonus payable under the Plan to a Participant upon
satisfaction of pre-established Target Results for a Plan Year in accordance
with the terms and conditions set forth herein.

 

K.                 “Plan” shall mean this Performance-Based
Bonus Plan.

 

L.                   “Plan Year” shall mean a full calendar
year in which the Plan is in effect, unless otherwise specified.

 

M.              “Retirement” shall mean termination of
employment at or after reaching age 65, or, in a specific case, as otherwise
determined by the Committee.

 

N.                 “Retirement Plans” shall mean the Jersey
Shore State Bank Pension Plan and the Jersey Shore State Bank 401(k) Plan.

 

O.                 “Strategic Business Plan” shall mean the
strategic plan of Jersey Shore State Bank.

 

P.                   “Target Results” shall mean annual goals
of the bank, consistent with the Strategic Business Plan and the Financial
Plan, the attainment of which is integrated with the granting of
Performance-Based Bonus Awards.

 

2

 

IV.  Plan Administration

 

The Plan shall be administered by the Committee.  In the event the Committee determines, at any
time, that it would in the best interest of the Bank for the Plan to be
administered by a different group of individuals, it may provide for the
administration of the Plan by such other individuals.  In such event, all references to the
Committee herein shall be deemed to be references to such other individuals as
a group.

 

The Committee shall be vested with full authority to make such operating rules and
regulations as it deems appropriate to administer the Plan and to interpret the
provisions of the Plan.  Any
determination, decision, or action of the Committee in connection with the
construction, interpretation, administration, or application of the Plan shall
be final, conclusive, and binding upon each Participant and any person claiming
under or through a Participant.  The
Committee may specify such persons as it deems appropriate to assist it in
carrying out its responsibilities under the Plan.

 

Before the beginning of each Plan Year, the Committee may review and
revise the operating rules and regulations.  It is expected that the Plan will require
modification only when significant changes in organization, goals, personnel,
or performance occur (except to the extent that the Target Results and awards
are set each year in accordance with Section VII below).

 

Computation of any cash bonuses payable upon satisfaction of the Target
Results shall be made by the Bank’s Chief Financial Officer, with review and
approval by the Bank’s Chief Executive Officer, and consistent with the
parameters established herein.  The
Committee shall approve all such computations. 
Maintenance of Participant payments and other related records shall be
the responsibility of the Bank’s Human Resource Director.

 

The Committee may take into account the presence or absence of
nonrecurring or extraordinary items of income, gain, expense or loss, and any
and all factors which it may deem relevant, before approving any cash bonuses
for any given Plan Year.

 

The Committee may in its discretion exclude any nonrecurring or
extraordinary occurrences when it approves (a) whether the Target Results
have been satisfied and (b) the payment of any cash bonuses upon
satisfaction of such Target Results to ensure that the best interests of the
Bank and of Penns Woods’s shareholders are protected and are not brought into
conflict with the interests of Participants.

 

No member of the Committee or any person assisting the Committee in
connection with the administration of the Plan shall be liable for any act,
whether of commission or omission, made in reasonable good faith in connection
therewith.

 

3

 

V.  Plan Participation

 

Participation in the Plan is limited to Eligible Employees selected by the
Committee to participate.

 

The following is a summary of the positions selected by the Committee for
participation in the Plan.

 

	
  Tier

  	
   

  	
  Participants

  
	
  #1

  	
   

  	
  President  &
  CEO

  
	
  #2

  	
   

  	
  Positions in Grades 14
  and 15

  
	
  #3

  	
   

  	
  Positions in Grades 11,
  12, and 13

  
	
  #4

  	
   

  	
  Positions in Grades 8,
  9, and 10

  
	
  #5

  	
   

  	
  Positions in Grades 1–7

  

 

 

VI.  Operating Rules

 

A.                The Plan shall be effective as of January 1,
2010 with the first Plan Year being calendar year 2010.

 

B.                  The Bank reserves the right, by action of the
Committee or the Board, to amend, modify, suspend, reinstate, or terminate the
Plan at any time and from time to time, including during any Plan Year with
retroactive effect.  The Committee shall
communicate any such action to Participants in writing as soon as
administratively feasible following any such action.

 

C.                  Eligibility for participation in the Plan is based
upon the eligibility requirements as stated herein.

 

D.                 To be eligible for a Performance-Based Bonus Award, a
Participant must receive an overall rating of “Good” or higher on his/her most
recent individual performance appraisal prior to the end of the Plan Year.

 

E.                   Plan guidelines for each Plan Year, including setting
the Target Results for such Plan Year, and other pertinent matters will be
prepared and then approved by the Committee during the first quarter of each
Plan Year

 

F.                   Except as otherwise provided in subparagraph, K, no
right or interest of any Participant in the Plan shall be assignable or
transferable, or subject to any lien, directly, by operation of law, or
otherwise, including levy, garnishment, attachment, pledge, or bankruptcy.

 

4

 

G.                  Upon satisfaction of the Target Results for a Plan
Year, Participants shall receive payment of their cash bonuses no later than March 15
following the end of such Plan Year.

 

H.                 Plan guidelines for each Plan Year and the applicable
Target Results shall be reviewed with the Participants during the first quarter
of each Plan Year.

 

I.                      A Performance-Based Bonus Award shall not
confer any right on any employee to continue in the employ of the Bank or limit
in any way the right of the Bank to terminate any employee’s employment at any
time for any reason.  The receipt of a
Performance-Based Bonus Award or a cash bonus for any one year shall not
guarantee any employee the right to receive an award or bonus for any
subsequent year.

 

J.                     The Participant’s employer shall deduct from payments
made under this Plan any federal, state, or local taxes required to be withheld
with respect to such payments.

 

K.                 Should a Participant’s employment terminate due to
death during a Plan Year, such Participant’s designated Beneficiary shall
receive a prorated share of any cash bonus under the Plan for which such
Participant would have been entitled for such Plan Year had such Participant
been employed at the end of such Plan Year, provided such Participant worked
for at least six (6) months during such Plan Year.  Such prorated bonus shall be paid at the same
time and in the same manner as cash bonuses are paid under the Plan to other
Participants for such Plan Year. 
Eligible Employees selected by the Committee to participate in the Plan
shall designate in writing a Beneficiary, which designation such Participant
may change from time to time in writing. 
All such Beneficiary designations shall be made in the manner and in
such form as directed by the Committee. 
In the event that the Participant does not have a designated Beneficiary
upon such Participant’s termination due to death during a Plan Year, the
Participant’s cash bonus for such Plan Year shall be forfeited.

 

L.                   Should a Participant terminate employment due to
Retirement during a Plan Year, such Participant shall receive a prorated share
of any cash bonus payment under the Plan for which such Participant would have
been entitled for such Plan Year had such Participant been employed at the end
of such Plan Year, provided such Participant worked for at least six (6) months
during such Plan Year prior to such Retirement or for such shorter period as
the Committee may designate in a specific case. 
Such prorated bonus shall be paid at the same time and in the same
manner as cash bonuses are paid under the Plan to other Participants for such
Plan Year.

 

M.              Should a Participant’s employment terminate during a
Plan Year for any reason other than death or Retirement, such Participant shall
not be eligible to receive a 

 

5

 

cash bonus under
the Plan for such Plan Year regardless if the Target Results for such Plan Year
are satisfied.

 

VII.  Summary of Plan Parameters

 

A.           Performance-Based Bonus Awards

 

The Committee may approve payments of cash bonuses
under the Plan  upon the satisfaction of
established targets for six (6) Target Results.

 

B.             Target Results

 

The Committee shall
establish Target
Results on an annual basis for six (6) key performance factors addressing
shareholder interests and the interests of profitably perpetuating the Bank
over time.  The Target Results shall
integrate industry peer group standards with specific goals established for the
Bank.  In addition, the Target Results
shall be weighted to reflect the relative importance of each, as established by
the Committee.

 

C.             Performance-Based Bonus Awards

 

As noted earlier in this document, the granting of
Performance-Based Bonus Awards, and the payment of cash bonuses upon
satisfaction of the Target Results, is at the discretion of the Committee.  Payment of cash bonuses upon satisfaction of
Performance-Based Bonus Awards may be made only when (a) the Target
Results are satisfied as determined by the Committee and (b) the Committee
deems that such actions are in the best interests of shareholders, the Bank,
and the Participants.

 

The Target Results and weighting shall be established
annually.  Documentation of these
guidelines shall be updated annually by the March 15th of each year by
the Committee via resolution.

 

Committee
determinations under this Section VII shall be subject to Board approval.

 

6Exhibit 10.1

 

AMENDED
AND RESTATED

CREDIT
AGREEMENT

Among

MARTEK
BIOSCIENCES CORPORATION,

A
Delaware Corporation

 

“As
Borrower”

 

and

 

MANUFACTURERS
AND TRADERS TRUST COMPANY,

A New
York Banking Corporation

 

“As
Administrative Agent and Issuing Lender”

 

and

 

BANK OF
AMERICA, N.A.,

A
National Banking Association

 

“As
Syndication Agent”

 

and

 

SUNTRUST
BANK,

A Georgia
Banking Corporation

 

“As
Documentation Agent”

 

and

 

CAPITAL
ONE, N.A.,

A
National Banking Association

 

“As
Co-Agent”

 

and

 

MANUFACTURERS
AND TRADERS TRUST COMPANY,

A New
York Banking Corporation

 

AND VARIOUS OTHER FINANCIAL INSTITUTIONS

NOW OR HEREAFTER PARTY HERETO

 

“As
Lenders”

 

Dated:  To Be Effective As Of March 19, 2010

 

 

TABLE OF
CONTENTS

 

	
  ARTICLE 1

  	
  CERTAIN DEFINITIONS; RULES OF
  CONSTRUCTION

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01

  	
  CERTAIN DEFINITIONS

  	
  1

  
	
  SECTION 1.02

  	
  TERMS GENERALLY

  	
  23

  
	
  SECTION 1.03

  	
  ACCOUNTING PRINCIPLES

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
  CREDIT FACILITIES

  	
  24

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01

  	
  REVOLVING CREDIT LOANS

  	
  24

  
	
  2.01.1

  	
  Revolving
  Credit Loan Promissory Notes

  	
  24

  
	
  2.01.2

  	
  Procedure For
  Revolving Credit Loan Borrowings

  	
  24

  
	
  2.01.3

  	
  Repayment Of
  Revolving Credit Loans

  	
  25

  
	
  2.01.4

  	
  Permitted
  Purposes Of Revolving Credit Loans

  	
  25

  
	
  2.01.5

  	
  Revolving
  Credit Unused Fees

  	
  25

  
	
  2.01.6

  	
  Permanent
  Reduction Of Revolving Credit Dollar Cap

  	
  25

  
	
  2.01.7

  	
  Increase In
  Revolving Credit Commitments

  	
  26

  
	
  SECTION 2.02.

  	
  LETTER OF CREDIT SUBFACILITY

  	
  26

  
	
  2.02.1

  	
  Request for
  Issuance; Amendment; Renewal; Extension; Certain Conditions

  	
  27

  
	
  2.02.2

  	
  Expiration
  Date

  	
  27

  
	
  2.02.3

  	
  Agreement of
  Lenders To Purchase Proportionate Share of Letters of Credit

  	
  27

  
	
  2.02.4

  	
  Reimbursement
  Obligations of the Borrower

  	
  28

  
	
  2.02.5

  	
  Borrower’s
  Reimbursement Obligations Are Absolute

  	
  28

  
	
  2.02.6

  	
  Applicability
  of ISP98

  	
  28

  
	
  2.02.7

  	
  Interim
  Interest

  	
  28

  
	
  2.02.8

  	
  Cash
  Collateralization

  	
  29

  
	
  2.02.9

  	
  Letter of
  Credit Fees

  	
  29

  
	
  2.02.10

  	
  Letters of
  Credit Issued for Other Loan Parties or Subsidiaries

  	
  29

  
	
  2.02.11

  	
  Increased
  Costs

  	
  29

  
	
  SECTION 2.03.

  	
  TERM LOANS

  	
  30

  
	
  2.03.1

  	
  Term Loan
  Notes

  	
  30

  
	
  2.03.2

  	
  Payment

  	
  30

  
	
  2.03.3

  	
  Mandatory
  Prepayments

  	
  30

  
	
  2.03.4.

  	
  Voluntary Prepayments

  	
  31

  
	
  SECTION 2.04.

  	
  INTEREST TERMS APPLICABLE TO THE
  LOANS

  	
  31

  
	
  2.04.1.

  	
  Adjusted Base
  Rate

  	
  31

  
	
  2.04.2.

  	
  LIBOR
  Borrowing Option

  	
  31

  
	
  2.04.3

  	
  Calculation Of
  Interest

  	
  33

  
	
  2.04.4

  	
  Default
  Interest

  	
  33

  
	
  2.04.5

  	
  Maximum Rate
  Of Interest

  	
  33

  
	
  SECTION 2.05.

  	
  LATE PAYMENT CHARGES

  	
  33

  
	
  SECTION 2.06.

  	
  PRO RATA TREATMENT AND PAYMENTS

  	
  33

  
	
  2.06.1.

  	
  Distribution
  Of Payments To Lenders

  	
  33

  
	
  2.06.2.

  	
  Funding Of
  Loans

  	
  33

  
	
  2.06.3.

  	
  Ratable
  Sharing

  	
  34

  
	
  2.06.4.

  	
  Setoffs,
  Counerclaims, Other Payments

  	
  34

  
	
  SECTION 2.07.

  	
  APPLICATION OF PAYMENTS

  	
  34

  
	
  SECTION 2.08.

  	
  INCREASED COSTS

  	
  35

  
	
  2.08.1.

  	
  Increased
  Costs Generally

  	
  35

  
	
  2.08.2

  	
  Capital
  Requirements

  	
  35

  
	
  2.08.3

  	
  Certificate
  for Reimbursement

  	
  35

  
	
  2.08.4

  	
  Delay in
  Requests

  	
  36

  
	
  SECTION 2.09.

  	
  TAXES

  	
  36

  
	
  2.09.1

  	
  Payment Free
  of Taxes

  	
  36

  
	
  2.09.2

  	
  Payment of Other Taxes by the Borrower

  	
  36

  

 

ii

 

	
  2.09.3

  	
  Indemnification
  by the Borrower

  	
  36

  
	
  2.09.4

  	
  Evidence of
  Payments

  	
  36

  
	
  2.09.5

  	
  Status of
  Lenders

  	
  36

  
	
  2.09.6

  	
  Treatment of
  Certain Refunds

  	
  37

  
	
  SECTION 2.10.

  	
  MITIGATION, OBLIGATIONS;
  REPLACEMENT OF LENDERS

  	
  37

  
	
  2.10.1

  	
  Designation of
  a Different Lending Office

  	
  37

  
	
  2.10.2

  	
  Replacement of
  Lenders

  	
  38

  
	
  SECTION 2.11.

  	
  FEES

  	
  38

  
	
  SECTION 2.12.

  	
  PAYMENTS

  	
  38

  
	
  SECTION 2.13.

  	
  ADVANCEMENTS

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
  REPRESENTATIONS AND WARRANTIES

  	
  39

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01

  	
  ORGANIZATION AND QUALIFICATION

  	
  39

  
	
  SECTION 3.02

  	
  CAPITALIZATION AND OWNERSHIP

  	
  39

  
	
  SECTION 3.03

  	
  SUBSIDIARIES

  	
  40

  
	
  SECTION 3.04

  	
  POWER AND AUTHORITY

  	
  40

  
	
  SECTION 3.05

  	
  VALIDITY AND BINDING EFFECT

  	
  40

  
	
  SECTION 3.06

  	
  NO CONFLICT

  	
  40

  
	
  SECTION 3.07

  	
  LITIGATION

  	
  40

  
	
  SECTION 3.08

  	
  FINANCIAL statementS; FINANCIAL PROJECTIONS

  	
  40

  
	
  3.08.1.

  	
  Financial
  Statements

  	
  40

  
	
  3.08.2.

  	
  Books and
  Records

  	
  41

  
	
  3.08.3.

  	
  Absence of
  Material Liability

  	
  41

  
	
  3.08.4.

  	
  Financial
  Projections

  	
  41

  
	
  SECTION 3.09

  	
  MARGIN STOCK

  	
  41

  
	
  SECTION 3.10

  	
  FULL DISCLOSURE

  	
  41

  
	
  SECTION 3.11

  	
  TAX RETURNS AND PAYMENTS

  	
  42

  
	
  SECTION 3.12

  	
  CONSENTS AND APPROVALS

  	
  42

  
	
  SECTION 3.13

  	
  NO EVENT OF DEFAULT; COMPLIANCE
  WITH INSTRUMENTS

  	
  42

  
	
  SECTION 3.14

  	
  COMPLIANCE WITH LAWS

  	
  42

  
	
  SECTION 3.15.

  	
  ERISA COMPLIANCE

  	
  42

  
	
  3.15.1.

  	
  Plans and
  Contributions

  	
  42

  
	
  3.15.2.

  	
  Pending Claims

  	
  42

  
	
  3.15.3.

  	
  ERISA Events

  	
  42

  
	
  SECTION 3.16

  	
  TITLE TO PROPERTIES

  	
  43

  
	
  SECTION 3.17

  	
  INSURANCE

  	
  43

  
	
  SECTION 3.18

  	
  EMPLOYMENT MATTERS

  	
  43

  
	
  SECTION 3.19.

  	
  SOLVENCY

  	
  43

  
	
  SECTION 3.20

  	
  MATERIAL CONTRACTS; BURDENSOME
  RESTRICTIONS

  	
  43

  
	
  SECTION 3.21

  	
  PATENTS, TRADEMARKS, COPYRIGHTS,
  LICENSES, ETC.

  	
  43

  
	
  SECTION 3.22

  	
  LIENS

  	
  43

  
	
  SECTION 3.23.

  	
  ENVIRONMENTAL COMPLIANCE

  	
  44

  
	
  SECTION 3.24

  	
  ANTI-TERRORISM
  LAWS

  	
  44

  
	
  SECTION 3.25

  	
  ACQUISITION

  	
  44

  
	
  section 3.26

  	
  Funding Date

  	
  44

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
  CONDITIONS PRECEDENT

  	
  44

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  CONDITIONS TO CLOSING

  	
  44

  
	
  4.01.1.

  	
  Closing
  Submissions

  	
  44

  
	
  4.01.2.

  	
  Fees

  	
  44

  
	
  4.01.3.

  	
  Officer Certificate; Other
  Submissions

  	
  44

  
	
  4.01.4

  	
  Landlord
  Warehouseman Agreements

  	
  45

  
	
  SECTION 4.02.

  	
  CONDITIONS TO ADVANCES OF PROCEEDS OF LOANS AND ISSUANCES
  OF LETTERS OF CREDIT AFTER CLOSING DATE

  	
  45

  
	
  4.02.1.

  	
  Representations
  And Warranties

  	
  45

  
	
  4.02.2.

  	
  Absence Of
  Defaults And Events Of Default

  	
  45

  
	
  4.02.3.

  	
  No Material
  Adverse Changes

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
  AFFIRMATIVE
  COVENANTS

  	
  45

  

 

iii

 

	
  SECTION 5.01.

  	
  PAYMENT AND PERFORMANCE

  	
  45

  
	
  SECTION 5.02.

  	
  INSURANCE

  	
  45

  
	
  SECTION 5.03.

  	
  COLLECTION OF ACCOUNTS; SALE OF
  INVENTORY

  	
  46

  
	
  SECTION 5.04.

  	
  NOTICE OF LITIGATION AND
  PROCEEDINGS

  	
  46

  
	
  SECTION 5.05.

  	
  PAYMENT OF LIABILITIES TO THIRD
  PERSONS

  	
  46

  
	
  SECTION 5.06.

  	
  NOTICE OF CHANGE OF BUSINESS
  LOCATION

  	
  46

  
	
  SECTION 5.07.

  	
  PAYMENT OF TAXES

  	
  46

  
	
  SECTION 5.08.

  	
  REPORTING REQUIREMENTS

  	
  47

  
	
  5.08.1.

  	
  Inventory
  Reports

  	
  47

  
	
  5.08.2.

  	
  Receivables
  And Accounts Payable Reports

  	
  47

  
	
  5.08.3.

  	
  Quarterly
  Financial Statements

  	
  47

  
	
  5.08.4.

  	
  Annual
  Financial Statements

  	
  47

  
	
  5.08.5.

  	
  Management
  Letters

  	
  47

  
	
  5.08.6.

  	
  Compliance
  Certificate

  	
  47

  
	
  5.08.7.

  	
  Reports To
  Other Creditors

  	
  47

  
	
  5.08.8.

  	
  Management
  Changes

  	
  48

  
	
  5.08.9.

  	
  Notice of
  Defaults and Events of Default

  	
  48

  
	
  5.08.10.

  	
  SEC Filings

  	
  48

  
	
  5.08.11.

  	
  General
  Information

  	
  48

  
	
  SECTION 5.09.

  	
  PRESERVATION OF EXISTENCE, ETC.

  	
  48

  
	
  SECTION 5.10.

  	
  MAINTENANCE OF ASSETS AND
  PROPERTIES

  	
  48

  
	
  SECTION 5.11.

  	
  COMPLIANCE WITH LAWS

  	
  48

  
	
  SECTION 5.12.

  	
  INSPECTION RIGHTS

  	
  48

  
	
  SECTION 5.13.

  	
  ENVIRONMENTAL MATTERS AND
  INDEMNIFICATION

  	
  49

  
	
  SECTION 5.14.

  	
  ADDITIONAL GUARANTORS

  	
  49

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
  NEGATIVE COVENANTS

  	
  49

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  LIENS

  	
  49

  
	
  SECTION 6.02.

  	
  INVESTMENTS AND LOANS

  	
  49

  
	
  SECTION 6.03.

  	
  INDEBTEDNESS

  	
  50

  
	
  SECTION 6.04.

  	
  FUNDAMENTAL CHANGES

  	
  50

  
	
  SECTION 6.05.

  	
  DISPOSITIONS

  	
  50

  
	
  SECTION 6.06.

  	
  RESTRICTED PAYMENTS

  	
  50

  
	
  SECTION 6.07.

  	
  CHANGE IN NATURE OF BUSINESS

  	
  51

  
	
  SECTION 6.08.

  	
  TRANSACTIONS WITH AFFILIATES

  	
  51

  
	
  SECTION 6.09.

  	
  BURDENSOME AGREEMENTS; NEGATIVE
  PLEDGES

  	
  51

  
	
  SECTION 6.10.

  	
  USE OF PROCEEDS

  	
  51

  
	
  SECTION 6.11.

  	
  CONSOLIDATED LEVERAGE RATIO

  	
  51

  
	
  SECTION 6.12.

  	
  CONSOLIDATED FIXED CHARGE
  COVERAGE RATIO

  	
  51

  
	
  SECTION 6.13.

  	
  MINIMUM CONSOLIDATED EBITDA

  	
  51

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
  EVENTS OF DEFAULT

  	
  51

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
  FAILURE TO PAY

  	
  51

  
	
  SECTION 7.02.

  	
  VIOLATION OF COVENANTS

  	
  51

  
	
  SECTION 7.03.

  	
  REPRESENTATION OR WARRANTY

  	
  52

  
	
  SECTION 7.04.

  	
  CROSS DEFAULT

  	
  52

  
	
  SECTION 7.05.

  	
  JUDGMENTS

  	
  52

  
	
  SECTION 7.06.

  	
  LEVY BY JUDGMENT CREDITOR

  	
  52

  
	
  SECTION 7.07.

  	
  INVOLUNTARY INSOLVENCY
  PROCEEDINGS

  	
  52

  
	
  SECTION 7.08.

  	
  VOLUNTARY INSOLVENCY PROCEEDINGS

  	
  53

  
	
  SECTION 7.09.

  	
  ATTEMPT TO TERMINATE OR LIMIT
  GUARANTIES

  	
  53

  
	
  SECTION 7.10.

  	
  ERISA

  	
  53

  
	
  SECTION 7.11.

  	
  INJUNCTION

  	
  53

  
	
  SECTION 7.12.

  	
  CHANGE IN CONTROL

  	
  53

  
	
  SECTION 7.13

  	
  MATERIAL ADVERSE CHANGE

  	
  53

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
  RIGHTS AND REMEDIES OF CREDIT PARTIES ON THE OCCURRENCE
  OF AN 

  	
   

  
	
  EVENT OF
  DEFAULT

  	
  53

  

 

iv

 

	
  SECTION 8.01.

  	
  CREDIT PARTIES’ SPECIFIC RIGHTS
  AND REMEDIES

  	
  53

  
	
  SECTION 8.02.

  	
  AUTOMATIC ACCELERATION

  	
  53

  
	
  SECTION 8.03.

  	
  CONSENT TO APPOINTMENT OF
  RECEIVER

  	
  54

  
	
  SECTION 8.04.

  	
  REMEDIES CUMULATIVE

  	
  54

  
	
  SECTION 8.05.

  	
  APPLICATION OF FUNDS

  	
  54

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
  THE AGENT

  	
  55

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
  APPOINTMENT

  	
  55

  
	
  SECTION 9.02.

  	
  EXCULPATORY PROVISIONS

  	
  55

  
	
  9.02.1.

  	
  No Fiduciary,
  Discretionary or Implied Duties

  	
  55

  
	
  9.02.2.

  	
  No Liability
  for Certain Actions

  	
  55

  
	
  9.02.3.

  	
  Knowledge

  	
  55

  
	
  9.02.4.

  	
  No Duty to
  Inquire

  	
  55

  
	
  SECTION 9.03.

  	
  RELIANCE BY AGENT

  	
  56

  
	
  SECTION 9.04.

  	
  DELEGATION OF DUTIES

  	
  56

  
	
  SECTION 9.05.

  	
  RESIGNATION OF AGENT

  	
  56

  
	
  SECTION 9.06.

  	
  NON-RELIANCE ON AGENT AND OTHER
  LENDERS

  	
  57

  
	
  SECTION 9.07.

  	
  AGENT MAY HOLD COLLATERAL
  FOR LENDERS AND OTHERS

  	
  57

  
	
  SECTION 9.08.

  	
  THE AGENT IN ITS INDIVIDUAL
  CAPACITY

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
  MISCELLANEOUS

  	
  57

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01.

  	
  NOTICES

  	
  57

  
	
  SECTION 10.02.

  	
  COURSE OF CONDUCT

  	
  59

  
	
  SECTION 10.03.

  	
  WAIVERS AND AMENDMENTS

  	
  59

  
	
  SECTION 10.04.

  	
  EXPENSES

  	
  60

  
	
  SECTION 10.05.

  	
  INDEMNITY

  	
  60

  
	
  SECTION 10.06.

  	
  WAIVER OF CLAIMS

  	
  61

  
	
  SECTION 10.07.

  	
  SUCCESSORS AND ASSIGNS GENERALLY

  	
  61

  
	
  SECTION 10.08.

  	
  ASSIGNMENTS BY LENDERS

  	
  61

  
	
  SECTION 10.09.

  	
  REGISTER

  	
  62

  
	
  SECTION 10.10.

  	
  PROCEDURES FOR IMPLEMENTING LENDER
  ASSIGNMENTS

  	
  62

  
	
  SECTION 10.11.

  	
  PARTICIPATIONS

  	
  62

  
	
  SECTION 10.12.

  	
  PLEDGES

  	
  63

  
	
  SECTION 10.13.

  	
  RESIGNATION BY M&T BANK AS
  ISSUING LENDER

  	
  63

  
	
  SECTION 10.14.

  	
  SURVIVAL

  	
  63

  
	
  SECTION 10.15.

  	
  COUNTERPARTS AND INTEGRATION

  	
  63

  
	
  SECTION 10.16.

  	
  ELECTRONIC EXECUTION

  	
  64

  
	
  SECTION 10.17.

  	
  SEVERABILITY

  	
  64

  
	
  SECTION 10.18.

  	
  RIGHT OF SETOFF

  	
  64

  
	
  SECTION 10.19.

  	
  GOVERNING LAW

  	
  64

  
	
  SECTION 10.20.

  	
  JURISDICTION

  	
  64

  
	
  SECTION 10.21.

  	
  VENUE

  	
  64

  
	
  SECTION 10.22.

  	
  SERVICE OF PROCESS

  	
  64

  
	
  SECTION 10.23.

  	
  WAIVER OF JURY TRIAL

  	
  65

  
	
  SECTION 10.24.

  	
  TIME

  	
  65

  
	
  SECTION 10.25.

  	
  TREATMENT OF CERTAIN
  INFORMATION; CONFIDENTIALITY

  	
  65

  
	
  SECTION 10.26

  	
  ADVERTISEMENT

  	
  65

  
	
  SECTION 10.27.

  	
  ACKNOWLEDGMENTS

  	
  65

  
	
  SECTION 10.28.

  	
  USA PATRIOT
  ACT NOTICE

  	
  66

  

 

SCHEDULES

 

Schedule 3.02              Capital Stock Guarantors

Schedule 3.03              Subsidiaries

Schedule 3.20              Material Contracts

 

v

 

Schedule 6.03              Indebtedness

 

EXHIBITS

 

Exhibit A                      Form of Assignment
And Assumption

Exhibit B                      Form of Compliance
Certificate

Exhibit C                      Form of Lender
Addendum

Exhibit D                      Form of Revolving
Credit Note

Exhibit E                       Form of Term Loan
Note

Exhibit F                       Opinion Letter Contents

 

vi

 

AMENDED AND RESTATED CREDIT
AGREEMENT

 

THIS
AMENDED AND RESTATED CREDIT AGREEMENT is dated to be effective as of January 21,
2010, by and between MARTEK BIOSCIENCES CORPORATION, a Delaware corporation (“Borrower”);
each lender from time to time party hereto (collectively, the “Lenders” and
each a “Lender”); MANUFACTURERS AND TRADERS TRUST COMPANY, a New York banking
corporation, as administrative agent and Issuing Lender; BANK OF AMERICA, N.A.,
a national banking association, as syndication agent; SUNTRUST BANK, a Georgia
banking corporation, as documentation agent; and CAPITAL ONE, N.A., a national
banking association, as co-agent.

 

RECITALS:

 

The
Borrower has requested that the Lenders extend loans and other financial
accommodations to the Borrower as more particularly described in this Credit
Agreement.

 

The
Lenders have agreed to provide such loans and financial accommodations to the
Borrower in accordance with the terms and conditions contained herein.

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter
set forth, and other valuable consideration, and intending to be legally bound
hereby, the parties hereby covenant and agree as follows:

 

ARTICLE 1

CERTAIN DEFINITIONS; RULES OF CONSTRUCTION

 

Section 1.01.          Certain Definitions.  In addition to the terms defined elsewhere in this
Agreement, the following terms shall have the following meanings, respectively,
unless the context hereof clearly requires otherwise:

 

“Account” means any “account” within the meaning of that term
under the Uniform Commercial Code.

 

“Account Debtor” means any “account debtor” within the
meaning of that term under the Uniform Commercial Code, including any Person
who is obligated to pay an Account.

 

“Acquisition” means the Borrower’s acquisition of Amerifit
pursuant to the terms of the Purchase Agreement.

 

“Acquisition Target” means any Person (or
substantially all of the assets and business operations of any Person) which is
to be acquired in a Permitted Acquisition by the Borrower or any of  its Subsidiaries.

 

“Act” means the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism
(USA Patriot Act), Act of 2001, Pub. L. No. 107-56, 115 Stat. 272
(codified in scattered sections of 18 U.S.C.A.).

 

“Adjusted Base Rate” means that rate of interest equal to the
Base Rate plus the Applicable Margin.

 

“Adjusted Base Rate Borrowing”  means each amount of the unpaid principal
balance of a Loan which accrues interest at the Adjusted Base Rate.

 

 

“Adjusted LIBOR Rate” means for any LIBOR
Borrowing for any Interest Period, an interest rate per annum that is equal to
the LIBOR Rate for such Interest Period plus the Applicable Margin.

 

“Affiliate” means, 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.

 

“Agent” means M&T Bank, in its capacity as
administrative agent for the Lenders in accordance with this Agreement, and its
successors and assigns in such capacity as authorized by the terms of this
Agreement.

 

“Agreement” means this Credit Agreement, as it may be amended
or modified from time to time, together with all schedules and exhibits hereto.

 

“Amerifit” means Charter Amerifit, LLC, a Delaware limited
liability company, now known as Martek Amerifit, LLC, and certain of its
subsidiaries, including Amerifit Brands, Inc.

 

“Applicable Margin” means the following
percentages corresponding to the Consolidated Leverage Ratio in effect as of
the most recent Calculation Date:

 

	
   

  	
   

  	
   

  	
   

  	
  APPLICABLE
  MARGIN FOR

  ADJUSTED BASE RATE

  BORROWINGS

  	
   

  	
  APPLICABLE
  MARGIN FOR

  LIBOR BORROWINGS

  	
   

  	
  APPLICABLE
  MARGIN

  	
   

  	
  APPLICABLE
  MARGIN

  	
   

  
	
  TIER

  LEVEL

  	
   

  	
  CONSOLIDATED

  LEVERAGE RATIO

  	
   

  	
  REVOLVING

  CREDIT LOANS

  	
   

  	
  TERM

  LOANS

  	
   

  	
  REVOLVING

  CREDIT LOANS

  	
   

  	
  TERM

  LOANS

  	
   

  	
  FOR
  REVOLVING

  CREDIT UNUSED FEES

  	
   

  	
  FOR
  LETTER OF

  CREDIT FEES

  	
   

  
	
  1

  	
   

  	
  X
  > 2.25

  	
   

  	
  1.000

  	
  %

  	
  1.25

  	
  %

  	
  3.000

  	
  %

  	
  3.375

  	
  %

  	
  0.250

  	
  %

  	
  3.00

  	
  %

  
	
  2

  	
   

  	
  1.75
  < X < 2.25

  	
   

  	
  0.750

  	
  %

  	
  1.00

  	
  %

  	
  2.625

  	
  %

  	
  3.000

  	
  %

  	
  0.250

  	
  %

  	
  2.625

  	
  %

  
	
  3

  	
   

  	
  1.25
  < X < 1.75

  	
   

  	
  0.250

  	
  %

  	
  0.50

  	
  %

  	
  2.375

  	
  %

  	
  2.625

  	
  %

  	
  0.125

  	
  %

  	
  2.375

  	
  %

  
	
  4

  	
   

  	
  X
  < 1.25

  	
   

  	
  0.000

  	
  %

  	
  0.00

  	
  %

  	
  2.000

  	
  %

  	
  2.375

  	
  %

  	
  0.125

  	
  %

  	
  2.00

  	
  %

  

 

The initial Applicable
Margin shall be based on Tier Level 1. 
Beginning with the Calculation Date immediately following the Fiscal
Quarter of the Borrower ending on April 30, 2010 and after each
consecutive Fiscal Quarter thereafter, the Applicable Margin shall be
determined and adjusted by the then current Consolidated Leverage Ratio as
determined in accordance with the quarterly Compliance Certificates to be
provided by the Borrower in accordance with this Agreement.  If the Borrower fails to timely provide a
Compliance Certificate for any Fiscal Quarter of the Borrower as required by
and within the time limitations set forth in this Agreement, the Applicable
Margin from the applicable date of such failure shall be based on Tier
Level 1 until five (5) Business Days after a Compliance Certificate
has been provided, whereupon the applicable Tier Level shall be determined by
the Consolidated Leverage Ratio set forth in such Compliance Certificate.  If an Event of Default has occurred and is
continuing on a Calculation Date for which there should be a reduction in the
Applicable Margin due to a reduction in the Consolidated Leverage Ratio, such
reduction in the Applicable Margin shall not take effect until the first day of
the first calendar month following the date on which such Event of Default is
waived or cured.  Except as set forth
above, each Applicable Margin shall be effective from a Calculation Date until
the next Calculation Date.  If, as a
result of any restatement of or other adjustment to the financial statements of
the Borrower and its Subsidiaries or for any other reason, the Borrower or the
Lenders determine that (a) the Consolidated Leverage Ratio (or any
component thereof) as calculated by the Borrower as of any applicable date was
inaccurate, and (b) a proper calculation would have resulted in higher
pricing for such period, the Borrower shall immediately and retroactively be
obligated to pay to the Agent for the Account of the applicable Lenders or the
Issuing Lender promptly on demand by Agent (or, after the occurrence of an
actual or deemed entry of an order for relief with respect to the Borrower
under the Bankruptcy Code, automatically and without further action by Agent,
any Lender or the Issuing Lender), an amount equal to the excess of the amount
of interest and fees that should have been paid for such period over the amount

 

2

 

of interest and fees
actually paid for such period.  Borrower’s
obligations to make such payment shall survive the termination of the
Commitments and the repayment of all other Obligations hereunder.

 

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

 

“Assignment And Assumption”  means an Assignment and
Assumption entered into by a Lender
and an Eligible Assignee, and accepted by the Agent, substantially in the form
of Exhibit A attached hereto or any other form approved by the Agent.

 

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

 

“Authorized Officer” means, with respect to any
Person (other than a natural Person), any officer, partner, manager or other
representative authorized to act on behalf of such Person and shall include,
with respect to any Loan Party, those Persons duly designated as such in any
incumbency certificates delivered to the Agent from time to time.

 

“Bank Products” means any one or more of the following types
of services or facilities extended to any of the Loan Parties by any Credit Party
or Affiliate of a Credit Party: (a) Automated Clearing House (ACH)
transactions and other similar money transfer services; (b) cash
management, lockbox services and other similar services; (c) establishing
and maintaining deposit accounts; (d) credit cards or stored value cards;
and (e) other similar or related bank products and services.

 

“Bankruptcy Code” means the bankruptcy code of the United
States of America codified in Title 11 of the United States Code, as from time
to time amended or supplemented.

 

“Base Rate” means, for any day, the fluctuating rate per annum
equal to the higher of (a) the Prime Rate for such day,  (b) the Federal Funds Rate in effect on
such day plus fifty (50) Basis Points, or (c) the one-month LIBOR
Rate plus one hundred fifty (150) Basis Points. Any change in the Base Rate
shall be effective on the opening of business on the day of such change.

 

“Basis Point” means one one-hundredth (.01)of one percent.

 

“Borrowing Date” means, any Business Day specified in a Loan Request in accordance
with Section 2.01.2 of this Agreement as a date on which the Borrower has
requested that the Lenders advance proceeds of the Revolving Credit Loans to or
for the account of the Borrower.

 

“Business Day” means (a) any day other than a Saturday
or Sunday or a legal holiday on which commercial banks in the State of New York
are authorized or required to be closed under the Laws of the State of New
York, and (b) if the applicable Business Day relates to any day for the
determination of a LIBOR Rate, any day that satisfies the conditions of clause (a) above which is
also a day on which dealings in Dollar deposits are conducted by and between
banks in the London Interbank Eurodollar Market.

 

“Calculation Date” means each of the dates
upon which the Applicable Margins are to be determined and adjusted, which
adjustments shall be made quarterly on the date occurring five (5) Business
Days after the date on which the Agent receives the quarterly Compliance
Certificate in 

 

3

 

accordance
with the provisions of this
Agreement, or otherwise as required by the terms of this Agreement.

 

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

 

“Cash Capital Expenditures” means, with respect to any
Person for any applicable period, the capital expenditures of such Person made
during such period (including any capitalized expenditures for Intangible
Assets other than goodwill, customer lists and non-compete agreements),
excluding any capital expenditures paid from proceeds of Indebtedness (other
than proceeds of Indebtedness arising from borrowings under any working capital
line of credit or similar short term financing, such as the Revolving Credit
Loans).

 

“Cash Collateral” has the meaning given to such term in Section 2.02.8
of this Agreement.

 

“Cash Collateralize” has the meaning given to
such term in Section 2.02.8 of this Agreement.

 

“Cash Equivalents” means (a) securities
issued or directly and fully guaranteed or insured by the United States
Government or any agency or instrumentality thereof having maturities of not
more than one year from the date of acquisition, (b) time deposits,
certificates of deposit and Eurodollar time deposits with maturities of not
more than twelve (12) months from the date of acquisition, bankers’ acceptances
with maturities not exceeding twelve (12) months from the date of acquisition
and overnight bank deposits, in each case with the Agent or any Lender or with
any domestic commercial bank having capital and surplus in excess of Five
Hundred Million Dollars ($500,000,000), (c) repurchase obligations with a
term of not more than thirty (30) days for underlying securities of any of the
types described in clause (a) or (b) and entered into with any bank
meeting the qualifications specified in clause (b) above, (d) commercial
paper with maturities not exceeding twelve (12) months rated not lower than A-1
or A-2 by Standard & Poor’s Ratings Group or P-1 or P-2 by Moody’s
Investors Service, Inc. on the date of acquisition, (e) readily marketable
obligations issued by any State of the United States of America or any
political subdivision thereof or any authorized agency thereof having a rating
of not lower than A-1 by Standard & Poor’s Ratings Group or P-1 by
Moody’s Investors Service, Inc. on the date of acquisition, and (f) interests
in pooled investment funds (including mutual funds and money market funds) the
assets of which are invested in investments referred to in items (a) through
(d) above.

 

“Cash Taxes” means, with respect to any referenced Person, for
any applicable period, the taxes paid in cash by such Person during such
period.

 

“Casualty
Event” means any loss of or damage to, or any condemnation or other
taking of, any of the Collateral for which any Loan Party receives insurance
proceeds, or proceeds of a condemnation award or other compensation.

 

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

 

4

 

“Change of Control” means an event or series of events by
which:

 

(a)           any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, but excluding any employee benefit plan of
such person or its subsidiaries, and any person or entity acting in its
capacity as trustee, agent or other fiduciary or administrator of any such
plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5
under the Securities Exchange Act of 1934, except that a person or group shall
be deemed to have “beneficial ownership” of all securities that such person or
group has the right to acquire, whether such right is exercisable immediately
or only after the passage of time (such right, an “option right”)),
directly or indirectly, of twenty-five percent (25%) or more of the equity
securities of the Borrower entitled to vote for members of the board of
directors or equivalent governing body of the Borrower on a fully-diluted basis
(and taking into account all such securities that such person or group has the
right to acquire pursuant to any option right), or

 

(b)           during any period of twenty-four (24)
consecutive months, a majority of the members of the board of directors or
other equivalent governing body of the Borrower cease to be composed of
individuals (i) who were members of that board or equivalent governing
body on the first day of such period, (ii) whose election or nomination to
that board or equivalent governing body was approved by individuals referred to
in clause (i) above constituting at the time of such election or
nomination at least a majority of that board or equivalent governing body or (iii) whose
election or nomination to that board or other equivalent governing body was
approved by individuals referred to in clauses (i) and (ii) above
constituting at the time of such election or nomination at least a majority of
that board or the nominating committee thereof or equivalent governing body
(excluding, in the case of both clause (ii) and clause (iii), any individual
whose initial nomination for, or assumption of office as, a member of that
board or equivalent governing body occurs as a result of an actual or
threatened solicitation of proxies or consents for the election or removal of
one or more directors by any person or group other than a solicitation for the
election of one or more directors by or on behalf of the board of directors)

 

“Closing” means the execution and delivery of this Agreement
by the parties hereto.

 

“Closing Date” means the above stated effective date of
this Agreement.

 

“Code” means the Internal Revenue Code of 1986, as the
same may be amended or supplemented from time to time, and any successor
statute of similar import, and the rules and regulations thereunder, as
from time to time in effect.

 

“Collateral” means all of the tangible and intangible assets
and real and personal property of the Loan Parties which is pledged from time
to time to the Credit Parties in accordance with the Security Documents to
secure the Obligations.

 

“Commitment Percentages” means, with respect to any Lender,
such Lender’s Revolving Credit Commitment Percentage and Term Loan Commitment
Percentage, and with respect to all Lenders, all of the Revolving Credit
Commitment Percentages and all of the Term Loan Commitment Percentages.

 

“Commitment Period” means, with respect to
Revolving Credit Loans, the period from and including the Closing Date to but
not including the Revolving Credit Termination Date.

 

“Commitments”
means, with respect to any Lender, such Lender’s Revolving Credit Commitment
and Term Loan Commitment and its obligations hereunder to purchase
participations in LC Obligations.

 

5

 

“Compliance Certificate” means a
certificate provided by the Borrower in accordance with the requirements of Section 5.08.7
of this Agreement in form and substance as Exhibit B attached hereto.

 

“Consolidated
EBITDA” means for any period, for the Borrower and its Subsidiaries
on a consolidated basis, an amount equal to Consolidated Net Income for such
period plus (a) the following to the extent deducted in calculating
such Consolidated Net Income: (i) Consolidated Interest Charges for such
period, (ii) the provision for Federal, state, local and foreign income
taxes payable by the Borrower and its Subsidiaries for such period, (iii) depreciation,
amortization and other non-cash charges or expenses for such period and (iv) to
the extent not included in clause (iii) above, non-cash expenses
associated with stock compensation and/or stock awards and minus (b) the
following to the extent included in calculating such Consolidated Net Income: (i) Federal,
state, local and foreign income tax credits of the Borrower and its
Subsidiaries for such period and (ii) all non-cash items increasing
Consolidated Net Income for such period.

 

“Consolidated Excess Cash
Flow” means the Consolidated EBITDA for any Fiscal Year, minus (a) Consolidated
Interest Charges to the extent paid in cash, minus (b) consolidated
Cash Taxes of the Borrower and its Subsidiaries, minus (c) the
aggregate amount of scheduled payments of principal made during such year on
account of the Consolidated Funded Indebtedness (excluding any payments of
principal upon the Revolving Credit Loans), minus (d) consolidated
Cash Capital Expenditures, and minus (e) for the Fiscal Year ending
October 31, 2010, the lesser of Twenty-Five Million Dollars
($25,000,000.00) and the amount by which the aggregate principal balance of the
Revolving Credit Loans on October 31, 2010 is less than the aggregate
principal balance of the Revolving Credit Loans immediately after closing on
the Acquisition.

 

“Consolidated
Fixed Charges” means for any period of determination for the
Borrower and its Subsidiaries determined on a consolidated basis: the sum of (a) Consolidated
Interest Charges, (b) Letter of Credit Fees and other fees paid in
connection with Letters of Credit, including fronting, issuance, amendment and
processing fees, (c) scheduled principal payments upon Consolidated Funded
Indebtedness (including the principal components of capital lease payments),
and (d) Restricted Payments paid by the Borrower during such period.  The following shall not be included in the
definition of Consolidated Fixed Charges: (i) Mandatory Prepayments, and (ii) voluntary
prepayments upon Consolidated Funded Indebtedness.

 

“Consolidated
Fixed Charge Coverage Ratio” means the ratio for the four (4) consecutive
Fiscal Quarters most recently ended prior to any date of determination of (a) Consolidated
EBITDA for such period minus (i) Cash Capital Expenditures and (ii) Cash
Taxes during such period to (b) Consolidated Fixed Charges for such
period.

 

“Consolidated
Funded Indebtedness” means, as of any date of determination, for the
Borrower and its Subsidiaries on a consolidated basis, the sum of (a) the
outstanding principal amount of all obligations, whether current or long-term,
for borrowed money (including the Obligations owing by the Borrower with
respect to the Loans) and all obligations evidenced by bonds, debentures,
notes, loan agreements or other similar instruments, (b) all purchase
money Indebtedness, (c) all direct obligations arising under letters of
credit (including standby and commercial), bankers’ acceptances, bank
guaranties, surety bonds and similar instruments, (d) all obligations in
respect of the deferred purchase price of property or services (other than
trade accounts payable in the ordinary course of business), (e) Attributable
Indebtedness in respect of capital leases and Synthetic Lease Obligations, (f) without
duplication, all Guarantees with respect to outstanding Indebtedness of the
types specified in clauses (a) through (e) above of Persons other
than the Borrower or any Subsidiary, and (g) all Indebtedness of the types
referred to in clauses (a) through (f) above of any partnership or
joint venture (other than a joint venture that is itself a corporation or
limited liability company) in which the Borrower or a Subsidiary of 

 

6

 

the
Borrower is a general partner or joint venturer, unless such Indebtedness is
expressly made non-recourse to the Borrower or such Subsidiary.

 

“Consolidated
Interest Charges” means, for any period, for the Borrower and its
Subsidiaries on a consolidated basis, the sum of (a) all interest, premium
payments, debt discount, fees, charges and related expenses of the Borrower and
its Subsidiaries in connection with borrowed money (including capitalized
interest) or in connection with the deferred purchase price of assets, in each
case to the extent treated as interest in accordance with GAAP, and (b) the
portion of rent expense of the Borrower and its Subsidiaries with respect to
such period under capital leases that is treated as interest in accordance with
GAAP.

 

“Consolidated
Leverage Ratio” means, as of any date of determination, the ratio of
(a) (i) Consolidated Funded Indebtedness as of such date of
determination to (b) Consolidated EBITDA for the period of the four
(4) Fiscal Quarters most recently ended prior to such date of
determination.

 

“Consolidated
Net Income” means, for any period, for the Borrower and its
Subsidiaries on a consolidated basis, the net income of the Borrower and its
Subsidiaries (excluding extraordinary gains and extraordinary losses) for that
period, determined in accordance with GAAP.

 

“Contamination” means the
presence of any Hazardous Substance at any real property owned or leased by any
Loan Party which may require investigation, clean-up or remediation under any
Environmental Law.

 

“Control”  means 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
ability to exercise voting power, by contract or otherwise.  “Controlling”
and “Controlled” have meanings correlative
thereto.

 

“Credit Documents” means
collectively, this Agreement, the Notes, the Guaranty Agreements, the Security
Documents, the LC Documents, and all agreements, instruments and documents
evidencing or securing the Obligations, including without limitation each
document listed as a “Credit Document” on a Closing Index dated as of the
Closing Date, and all amendments and modifications thereto.

 

“Credit Parties” means, the
Agent, the Lenders and the Issuing Lender, and their respective successors and
assigns as permitted by the terms of this Agreement.

 

“Credit Party Expenses” means, without
duplication (a) reasonable
costs and expenses incurred by the Agent and its Affiliates, including the
reasonable fees, charges, and disbursements of counsel for the Agent arising
out of, pertaining to, or in any way connected with this Agreement, any of the
other Credit Documents or the Obligations, the syndication of the credit
facilities provided for herein, or otherwise in connection with such credit facilities,
(b) all costs and reimbursements required to be paid by the Borrower to
the Agent by the terms of the Credit Documents, (c) taxes and insurance
premiums advanced or otherwise paid by the Agent or any other Credit Party in
connection with the Collateral or on behalf of the Borrower, (d) filing
and recording costs, audit fees, search fees, and other expenses paid or
incurred by the Agent or any other Credit Party, (e) reasonable costs and
expenses incurred by the Agent in the collection of the accounts (with or
without the institution of legal action), or to enforce any provision of this
Agreement or any other Credit Document on behalf of the Credit Parties, or in
gaining possession of, maintaining, handling, evaluating, preserving, storing,
shipping, selling, preparing for sale and/or advertising to sell or foreclose
upon the Collateral or any other property of any of the Loan Parties whether or
not a sale is consummated, (f) reasonable costs and expenses of litigation
incurred by the Credit Parties, including reasonable attorney’s fees, in
enforcing or defending this Agreement or any portion hereof or any other Credit
Document, or in collecting any of the Obligations after the occurrence and
during the continuance of any Event of Default, (g) reasonable attorneys’
fees and expenses incurred 

 

7

 

by
the Agent in obtaining advice or the services of its attorneys with respect to
the structuring, drafting, negotiating, reviewing, amending, terminating,
waiving, enforcing or defending of this Agreement and the other Credit
Documents, or any agreement or matter related hereto, whether or not litigation
is instituted, (h) reasonable travel expenses of the Agent or its agents
related to any of the foregoing, and (i) all reasonable costs and
expenses, including reasonable attorneys’ fees and expenses, incurred by the
Issuing Lender in connection with Letters of Credit and LC Obligations.

 

“Debt Capitalization Ratio” means the ratio of (a) Consolidated
Funded Indebtedness, to (b) the sum of (i) Consolidated Funded
Indebtedness plus (ii) Shareholders’ Equity.

 

“Default” means any occurrence, event or condition which with
notice, the passage of time, or both would constitute an Event of Default.

 

“Default Rate” means the Adjusted Base Rate plus two
hundred (200) Basis Points per annum.

 

“Defaulting Lender” means a Lender that (a) has failed
to extend or fund a Loan required by the terms of this Agreement, including the
failure to fund a participation interest of such Lender required by this
Agreement, or (b) has failed to pay to the Agent or any Lender an amount
owed by such Lender pursuant to the terms of this Agreement, or (c) has
been deemed insolvent or has become the subject of a bankruptcy or insolvency
proceeding or to a receiver, trustee or similar official.

 

“Disposition”
means the sale, transfer, license, lease or other disposition (including any
sale and leaseback transaction) of any real or personal property by any Loan
Party or any Subsidiary of a Loan Party, including any sale, assignment,
transfer or other disposal, with or without recourse, of any notes or accounts
receivable or any rights and claims associated therewith, but specifically
excluding:  (a) the sale or transfer
of inventory or other assets in the ordinary course of business; (b) the
licensing of intellectual property in the ordinary course of business; (c) the
sale, transfer or other disposition of obsolete or worn-out property, tools or
equipment and property, tools or equipment no longer used or useful in the
business of any Loan Party, which are sold, transferred or disposed of in the
ordinary course of business; (d) the sale, transfer or other disposition
of any property from one Loan Party to another Loan Party; (e) the sale,
transfer or other disposition of any property from the Borrower or any
Subsidiary to any Foreign Subsidiary not to exceed in the aggregate, during any
Fiscal Year, One Million Dollars ($1,000,000.00); (f) the discount or sale
of receivables over sixty (60) days or more overdue in connection with the
compromise or collection thereof, provided that the aggregate proceeds from any
such sale or discount does not exceed Two Hundred Fifty Thousand Dollars
($250,000.00); (g) Restricted Payments otherwise permitted hereunder; (h) Dispositions
in transactions permitted by Section 6.04 of this Agreement; (i) Investments
of cash permitted pursuant to Section 6.02 of this Agreement; (j) use
of cash, Cash Equivalents and Short-Term Investments not otherwise prohibited
by this Agreement; and (k) leases or subleases of real property to other
Persons not materially interfering with the business of the Loan Parties, taken
as a whole.

 

“Dollar,” “Dollars,” “U.S. Dollars” and the symbol “$” means lawful money of the United States of America.

 

“Domestic Subsidiary” means any Subsidiary that is organized
and existing under the laws of the United States or any state thereof or under
the laws of the District of Columbia.

 

“Eligible Assignee” means (a) a Lender, (b) an
Affiliate of a Lender, (c) an Approved Fund, and (d) any other Person
(other than a natural person) approved by (i) the Agent, each such
approval not to be unreasonably withheld or delayed, (ii) in the case of
any assignment of a Revolving Credit Commitment, the Issuing Lender, each such
approval not to be unreasonably withheld or delayed, and (iii) unless a
Default or Event of Default has occurred and is continuing, the Borrower (each
such 

 

8

 

approval
not to be unreasonably withheld or delayed); provided that
notwithstanding the foregoing, the definition of “Eligible Assignee” shall not
include the Borrower or any of the Borrower’s Affiliates or Subsidiaries or any
natural Person.

 

“Environmental Laws” means any Law relating to
pollution and the protection of the environment or the release of any materials
into the environment, including those related to hazardous substances or
wastes, air emissions and discharges to waste or public systems.

 

“Environmental Liability” means any liability,
contingent or otherwise (including any liability for damages, costs of
environmental remediation, fines, penalties or indemnities), of the Borrower,
any other Loan Party or any of their respective Subsidiaries directly or
indirectly resulting from or based upon (a) violation of 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 or threatened release of any Hazardous Materials
into the environment 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 Interest” means with respect to any Person the shares
of Capital Stock of (or other ownership or profit interests in) such Person,
warrants, options or other rights for the purchase or acquisition from such
Person of shares of Capital Stock of (or other ownership or profit interests
in) such Person, securities convertible into or exchangeable for shares of
Capital Stock of (or other ownership or profit interests in) such Person or
warrants, rights or options for the purchase or acquisition from such Person of
such shares (or such other interests), and all other ownership or profit
interests in such Person, whether voting or nonvoting, and whether or not such
shares, warrants, options, rights or other interests are outstanding on any
date of determination.

 

“Equity Issuance” means any issuance by any Loan Party to any
Person which is not a Loan Party or by any Foreign Subsidiary of a Loan Party
which is not a Loan Party of any Equity Interests.

 

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

 

“ERISA Affiliate” means any trade or business
(whether or not incorporated) under common Control with the Loan Parties within
the meaning of Section 414(b) or (c) of the Code (and Sections
414(m) and (o) of the Code for purposes of provisions relating to Section 412
of the Code).

 

“ERISA Event” means (a) a Reportable Event with
respect to a Pension Plan, (b) a withdrawal by a Loan Party or any ERISA
Affiliate from a Pension Plan subject to Section 4063 of ERISA during a
plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of
ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of
ERISA; (c) a complete or partial withdrawal by a Loan Party or any ERISA
Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan
is in reorganization, (d) the filing of a notice of intent to terminate,
the treatment of a Plan amendment as a termination under Section 4041 or
4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a
Pension Plan or Multiemployer Plan, (e) an event or condition which
constitutes grounds under Section 4042 of ERISA for the termination of, or
the appointment of a trustee to administer, any Pension Plan or Multiemployer
Plan, or (f) the imposition of any liability under Title IV of ERISA,
other than for PBGC premiums due but not delinquent under Section 4007 of
ERISA, upon a Loan Party or any ERISA Affiliate.

 

“Event of Default” has the meaning given to
such term in Article 7 of this Agreement.

 

9

 

“Excluded Taxes” means, with respect to the Credit Parties or any
other recipient of any payment to be made by or on account of any obligation of
the Borrower hereunder, (a) taxes imposed on or measured by its overall
net income (however denominated), and franchise taxes imposed on it (in lieu of
net income taxes), by the jurisdiction (or any political subdivision thereof)
under the laws of which such recipient is organized 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
in which the Borrower is located, and (c) in the case of a Foreign Lender
(other than an assignee pursuant to a request by the Borrower under Section 2.10.2),
any withholding tax that is imposed on amounts payable to such Foreign Lender
at the time such Foreign Lender becomes a party hereto (or designates a new
lending office) or is attributable to such Foreign Lender’s failure or
inability (other than as a result of a Change in Law) to comply with Section 2.09.5,
except to the extent that such Foreign Lender (or its assignor, if any) was
entitled, at the time of designation of a new lending office (or assignment),
to receive additional amounts from the Borrower with respect to such
withholding tax pursuant to Section 2.09.1.

 

“Existing Revolver” means the existing
revolving line of credit being provided by M&T Bank, Bank of America, N.A.
and SunTrust Bank to the Borrower.

 

“Extraordinary
Receipts” means
any cash or non-cash payments or consideration received by any Loan Party or
its Subsidiaries which are (a) proceeds of a Casualty Event, (b) proceeds
of a Disposition, (c) proceeds arising from the issuance by any Loan Party
or its Subsidiaries of any Indebtedness for borrowed money other than
Indebtedness which is otherwise permitted by the terms of this Agreement, or (d) proceeds
arising from any Equity Issuances, except (i) Equity Issuances issued upon
exercise of employee and director stock options, and (ii) Equity Issuances
issued for cash for the purpose of funding the acquisition price and related
costs and expenses of one or more Permitted Acquisitions.

 

“Federal Funds Rate” means, for any day, the
rate per annum, (rounded, if necessary, to the next greater 1/100 of 1%)
determined (which determination shall be conclusive and binding, absent
manifest error) by the Agent to be equal to the weighted average of the rates
on overnight Federal funds transactions with member banks of the Federal
Reserve System arranged by Federal funds brokers on such day, as published by
the Federal Reserve Bank of New York on the Business Day next succeeding such
day; provided that (a) if such day is not a Business Day, the Federal
Funds Rate for such day shall be such rate on such transactions on the next
preceding Business Day as so published on the next succeeding Business Day, and
(b) if no such rate is so published on such next succeeding Business Day,
the Federal Funds Rate for such day shall be the average rate charged to the
Agent (in its individual capacity) on such day on such transactions as
determined by the Agent (which determination shall be conclusive and binding,
absent manifest error).

 

“Federal Reserve Board” means the Board of
Governors of the United States Federal Reserve System as constituted from time
to time.

 

“Fee Letter” means collectively: (a) the letter
agreement dated November 13, 2009 between M&T Bank and the Borrower;
and (b) the letter agreement dated March       ,
2010 between M&T Bank and the Borrower.

 

“Fiscal Quarter” means each three (3) month fiscal
period of the Borrower beginning on the first (1st) day of each consecutive February, May, August, and
November during the term of this Agreement.

 

“Fiscal Year” means each 12-month fiscal period of the
Borrower beginning November 1st of each year.

 

10

 

“Foreign Lender” means any Lender that is organized under the
laws of a jurisdiction other than that in which the Borrower is resident for
tax purposes.  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.

 

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

 

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

 

“Funding Date” means the date on which the
first advance of any proceeds of the Loans is made.

 

“GAAP” means generally accepted accounting principles set
forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as may be recognized by a significant segment
of the accounting profession, which are applicable to the circumstances as of
the date of determination, consistently applied.

 

“Governing State” means the State of New York.

 

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

 

“Guarantors” means collectively Martek Biosciences Boulder
Corporation, a Delaware corporation, Martek Biosciences Kingstree Corporation,
a Delaware corporation, Amerifit Pharma, Inc., a Massachusetts
corporation, Amerifit Brands, Inc., a Delaware corporation, Martek
Amerifit, LLC, a Delaware limited liability company, Amerifit, Inc., a
Delaware corporation, Martek Amerifit Holding Corporation, a Delaware
corporation, and all of the Subsidiaries of the Borrower other than Foreign
Subsidiaries.

 

“Guaranty Agreements” mean each of the guaranty agreements of
the Guarantors guaranteeing the repayment and performance of the Obligations.

 

“Guaranty Obligation” or “Guarantee”
(or “guaranty” or “guarantee”)
means any obligation, direct or indirect, by which a Person undertakes to
guaranty, assume or remain liable for the payment of another Person’s
obligations, including but not limited to (a) endorsements of negotiable
instruments, (b) discounts with recourse, (c) agreements to pay upon
a second Person’s failure to pay, (d) agreements to maintain the capital,
working capital solvency or general financial condition of a second Person, and
(e) agreements for the purchase or other acquisition of products,
materials, supplies or services, if in any case payment therefor is to be made
regardless of the nondelivery of such products, materials or supplies or the
non-furnishing of such services.

 

“Hazardous Materials” means all explosive or
radioactive substances or wastes and all hazardous or toxic substances, wastes
or other pollutants, including petroleum or petroleum distillates, asbestos or
asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious
or medical wastes and all other substances or wastes of any nature regulated
pursuant to any Environmental Law.

 

11

 

“Increase Effective Date” has the meaning provided to such
term in Section 2.01.7(d) of this Agreement.

 

“Indebtedness” means, as to any Person at a particular
time, without duplication, all of the following, whether or not included as
indebtedness or liabilities in accordance with GAAP (a) all obligations of
such Person for borrowed money and all obligations of such Person evidenced by
bonds, debentures, notes, loan agreements or other similar instruments, (b) all
direct or contingent obligations of such Person arising under letters of credit
(including standby and commercial), bankers’ acceptances, bank guaranties,
surety bonds and similar instruments, (c) net obligations of such Person
under any Interest Rate Hedge Agreement, (d) all obligations of such
Person to pay the deferred purchase price of property or services (other than
trade accounts payable in the ordinary course of business and due within six (6) months of the
incurrence thereof), (e) indebtedness (excluding prepaid interest
thereon) secured by a Lien on property owned or being purchased by such Person
(including indebtedness arising under conditional sales or other title
retention agreements), whether or not such indebtedness shall have been assumed
by such Person or is limited in recourse, (f) capital leases and Synthetic
Lease Obligations, (g) all obligations of such Person to purchase, redeem,
retire, defease or otherwise make any payment in respect of any Equity Interest
in such Person or any other Person, valued, in the case of a redeemable
preferred interest, at the greater of its voluntary or involuntary liquidation
preference plus accrued and unpaid dividends, and (h) all
Guarantees of such Person in respect of any of the foregoing.  For purposes of this definition, the
Indebtedness of any Person shall include the Indebtedness of any partnership or
joint venture (other than a joint venture that is itself a corporation or
limited liability company) in which such Person is a general partner or a joint
venturer, unless such Indebtedness is expressly made non-recourse to such
Person.  The amount of any net obligation
under any Interest Rate Hedge Agreement on any date shall be deemed to be the
Swap Termination Value thereof as of such date. 
The amount of any capital lease or Synthetic Lease Obligation as of any
date shall be deemed to be the amount of Attributable Indebtedness in respect
thereof as of such date.

 

“Indemnified Taxes” means Taxes other than Excluded Taxes.

 

“Indemnitee” has the meaning provided to such term in Section 10.05
of this Agreement.

 

“Information” means all information received from any Loan
Party relating to the Loan Parties or any of their respective businesses, other
than any such information that is available to the Credit Parties on a
nonconfidential basis prior to disclosure by the Loan Parties, provided
that, in the case of information received from the Loan Parties after the date
hereof, such information is clearly identified at the time of delivery as
confidential.

 

“Insolvency Proceeding” means, with respect to any
referenced Person, any case or proceeding commenced by or against such Person,
under any provision of the Bankruptcy Code or under any other federal or state
bankruptcy or insolvency law, or any assignments for the benefit of creditors,
formal or informal moratoriums, receiverships, compositions or extensions with
some or all creditors with respect to any indebtedness of such Person.

 

“Intangible Assets” means assets that are considered to be
intangible assets under GAAP, including goodwill, customer lists, computer software,
copyrights, trade names, trademarks, patents, franchises, licenses, unamortized
deferred charges, unamortized debt discount and capitalized research and
development costs.

 

“Interest Payment Date” means (a) with respect to any
Adjusted Base Rate Borrowing, the last Business Day of each Fiscal Quarter, and
(b) with respect to any LIBOR Borrowing, the last day of the Interest
Period applicable to such Loan and, in the case of a LIBOR Borrowing with an
Interest Period of more than three (3) months’ duration, each day prior to
the last day of such Interest Period that occurs at intervals of three (3) months’
duration after the first day of such Interest Period.

 

12

 

“Interest Period” means, with respect to any
LIBOR Borrowing, the period commencing on the date of such LIBOR Borrowing and
ending on the numerically corresponding day in the calendar month that is one
(1), two (2), three (3), or six (6) months thereafter, as the Borrower may
elect, provided that (a) if any Interest Period would end on a day
other than a Business Day, such Interest 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 commences on the
last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the last calendar month of such Interest
Period) shall end on the last Business Day of the last calendar month of such
Interest Period, and (c) the Borrower may not select any Interest Period
which would end after the Revolving Credit Termination Date or the Term Loan
Maturity Date, as the case may be.  For
purposes hereof, the date of a LIBOR Borrowing initially shall be the date on
which such LIBOR Borrowing is made and thereafter shall be the effective date
of the most recent conversion or continuation of such LIBOR Borrowing.

 

“Interest Rate Hedge Agreement” means any of the following,
whether currently existing or arising in the future, between any Loan Party and
any Interest Rate Hedge Provider (a) any and all rate swap transactions,
basis swaps, credit derivative transactions, forward rate transactions,
commodity swaps, commodity options, forward commodity contracts, equity or
equity index swaps or options, bond or bond price or bond index swaps or
options or forward bond or forward bond price or forward bond index
transactions, interest rate options, forward foreign exchange transactions, cap
transactions, floor transactions, collar transactions, currency swap
transactions, cross-currency rate swap transactions, currency options, spot
contracts, or any other similar transactions or any combination of any of the
foregoing (including any options to enter into any of the foregoing), whether
or not any such transaction is governed by or subject to any master agreement,
and (b) any and all transactions of any kind, and the related
confirmations, which are subject to the terms and conditions of, or governed
by, any form of master agreement published by the International Swaps and
Derivatives Association, Inc., any International Foreign Exchange Master
Agreement, or any other master agreement (any such master agreement, together
with any related schedules, a “Master Agreement”), including any such
obligations or liabilities under any Master Agreement.

 

“Interest Rate Hedge Provider” means any Credit Party or
Affiliate of a Credit Party (regardless of whether such Interest Rate Hedge
Provider ceases to be a Credit Party or Affiliate of a Credit Party after such
Interest Rate Hedge Agreement is entered into) that has entered into, or
subsequently enters into an Interest Rate Hedge Agreement from time to time with
a Loan Party to limit, hedge or mitigate interest rate, fee, and other risks
with respect to the Loans, the Letters of Credit, or any of the other
Obligations, but excluding, for the avoidance of doubt, any Interest Rate Hedge
Agreement entered into by a Credit Party or its Affiliates after its
Commitments have been fully cancelled in accordance with the terms of this
Agreement or after it has assigned all of its rights under the credit
facilities established by this Agreement.

 

“Investment”  means, as to any referenced Person, any direct or indirect acquisition
or investment by such Person, whether by means of (a) the purchase or
other acquisition of Capital Stock or other securities of another Person, (b) a
loan, advance or capital contribution to, guarantee or assumption of debt of,
or purchase or other acquisition of any other debt or equity participation or
interest in, another Person, including any partnership or joint venture
interest in such other Person, (c) the purchase or other acquisition (in
one transaction or a series of transactions) of assets of another Person that
constitute a business unit, or (d) any other investment in securities,
deposits, or the obligations of other Persons. For purposes of covenant
compliance, the amount of any Investment shall be the amount actually invested,
without adjustment for subsequent increases or decreases in the value of such
Investment.

 

“ISP” means, with respect
to any Letter of Credit, the “International Standby Practices 1998” published
by the Institute of International Banking Law & Practice (or such
later version thereof as may be in effect at the time of issuance).

 

13

 

“Issuing
Lender” means M&T Bank, as the issuer of Letters of Credit
pursuant to this Agreement, and any successor to M&T Bank, as the issuer of
Letters of Credit.

 

“Law” means any law (including common law), constitution,
statute, treaty, regulation, rule, ordinance, opinion, release, ruling, order,
injunction, writ, decree or award of any Governmental Authority.

 

“LC Borrowing” means an extension of credit resulting from a
drawing under any Letter of Credit which has not been reimbursed on the date
when made.

 

“LC
Commitment” means (a) the commitment of the Issuing Lender to
issue Letters of Credit in an aggregate amount at any time outstanding not to
exceed the Letter of Credit Sublimit, and (b) with respect to each Lender,
the commitment of such Lender to purchase participation interests in the LC
Obligations up to such Lender’s Revolving Credit Commitment Percentage
multiplied by the Letter of Credit Sublimit. 
The LC Commitment of each Lender is included in and is part of each
Lender’s Revolving Credit Commitment and is not in addition to the Lenders’
respective Revolving Credit Commitments.

 

“LC
Disbursement” means a payment made by the Issuing Lender pursuant to
a Letter of Credit, including but not limited to the amount of any draft paid
by the Issuing Lender under any Letter of Credit, and any taxes, charges, or
other costs or expenses incurred by the Issuing Lender in connection with any
such payment.

 

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

 

“LC
Expiration Date” means the day that is thirty (30) days prior to the
Revolving Credit Termination Date (or, if such day is not a Business Day, the
next preceding Business Day).

 

“LC
Obligations” means, at any time, the sum of (a) the
aggregate Stated Amount of all issued and outstanding Letters of Credit, plus (b) the
aggregate amount of all LC Borrowings. For all purposes of this Agreement, if
on any date of determination a Letter of Credit has expired by its terms but any
amount may still be drawn thereunder by reason of the operation of Rule 3.14
of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the
amount so remaining available to be drawn.

 

“Lender” means each of the financial institutions and Funds
that signs a Lender Addendum and their assignees as permitted by the terms of
this Agreement, each of which is referred to herein as a Lender.  Except where the context requires otherwise,
the term “Lender” shall also include the Issuing Lender.

 

“Lender Addendum” means a Lender Addendum substantially in
form as Exhibit C attached hereto pursuant to which a financial
institution or Fund agrees to become a Lender holding the Commitments and
Commitment Percentages set forth therein.

 

“Letter of Credit” means any letter of credit
issued by the Issuing Lender for the account of the Borrower or any Affiliate
thereof in accordance with the terms of this Agreement.

 

“Letter of Credit Application” means the Issuing Lender’s
then current form of application and agreement for the issuance or amendment of
a Letter of Credit.

 

14

 

“Letter of Credit Fee” has the meaning provided to
such term in Section 2.02.9 of this Agreement.

 

“Letter of Credit Sublimit” means an amount equal to
Fifteen Million Dollars ($15,000,000.00).

 

“LIBOR Borrowing” means each unpaid principal balance of a Loan
which accrues interest at the Adjusted LIBOR Rate.

 

“LIBOR Rate” means, for any LIBOR Borrowing for any Interest
Period, the higher of:  (a) one and
one-quarter percent (1.25%) per annum; or (b) the rate per annum (rounded
upwards, if necessary, to the nearest 1/16th of 1%)
obtained by dividing (i) the rate fixed by the British Bankers Association
for United States Dollar deposits in the London Interbank Eurodollar Market,
for a term comparable to such Interest Period, as determined by the Agent from
any broker, quoting service, or commonly available source utilized by the Agent
as a basis for such quotations, at approximately 11:00 a.m. London,
England time (or as soon thereafter as practicable) two (2) Business Days
prior to the first day of such Interest Period by (ii) a percentage
equal to one hundred percent (100%) minus the stated maximum rate of all
reserves required to be maintained against “Eurocurrency Liabilities” as
specified in Regulation D (or against any other category of liabilities which includes
deposits by reference to which the interest rate on LIBOR Rate loans is
determined or any category of extensions of credit or other assets which
includes loans by a non-United States office of a bank to United States
residents) on such date to any member bank of the Federal Reserve System.

 

“Lien” means any mortgage, deed of trust, pledge, lien,
security interest, charge or other encumbrance or security arrangement of any
nature whatsoever, whether voluntarily or involuntarily given, including but not
limited to any conditional sale or title retention arrangement, and any
assignment, deposit arrangement or lease intended as, or having the effect of,
security and any filed financing statement or other notice of any of the
foregoing (whether or not a lien or other encumbrance is created or exists at
the time of the filing).

 

“Loan Parties” means, collectively, the Borrower and the
Guarantors (including Persons that become Guarantors after the Closing Date).

 

“Loan Request” means a notice from the Borrower in
accordance with Section 2.01.2 hereof.

 

“Loans” means collectively the Revolving Credit Loans and
the Term Loans.

 

“M&T Bank” means Manufacturers and Traders Trust
Company, a New York banking corporation and its successors and assigns.

 

“Mandatory Prepayments” has the meaning provided to
such term in Section 2.03.3 of this Agreement.

 

“Margin Regulations” means Regulation T, U or X
as promulgated by the Federal Reserve Board, as amended from time to time.

 

“Material Adverse Change” means any set of circumstances
or events which (a) has or could reasonably be expected to have a material
adverse effect upon the validity or enforceability of this Agreement or any of
the other Credit Documents, (b) is or could reasonably be expected to be
material and adverse to the business, properties, assets, financial condition
or results of operations of the Borrower and its Subsidiaries, taken as a
whole, (c) materially impairs or could reasonably be expected to impair
materially the ability of the Borrower and its Subsidiaries, taken as a whole,
to pay and perform the 

 

15

 

Obligations,
(d) materially impairs or could reasonably be expected to impair
materially the ability of the Borrower and its Subsidiaries, taken as a whole,
to duly and punctually pay their Indebtedness, or (e) materially impairs
or could reasonably be expected to impair materially the ability of the Credit
Parties to enforce their remedies against the Loan Parties as authorized by the
terms of the Credit Documents or pursuant to applicable Law.

 

“Maturity Dates” means collectively (a) the Revolving
Credit Termination Date, and (b) the Term Loan Maturity Date.

 

“Minimum Borrowing Amount” means (a) with respect
to Adjusted Base Rate Borrowings Two Hundred Fifty Thousand Dollars ($250,000.00), and (b) with
respect to LIBOR Borrowings One Million Dollars ($1,000,000.00) with minimum
increments of One Hundred Thousand Dollars ($100,000.00).

 

“Multiemployer Plan” means any employee benefit
plan which is a “multiemployer plan” within the meaning of Section 4001(a)(3) of
ERISA and to which any Loan Party or any member of the ERISA Group is then
making or accruing an obligation to make contributions or, within the preceding
five (5) plan years, has made or had an obligation to make such
contributions.

 

“Net
Available Proceeds”  means any
cash payments, and the fair market cash value of any non-cash consideration,
received by any Loan Party or its Subsidiaries directly or indirectly in
connection with or from any transaction, event, condition or occurrence which
generates or results in any Extraordinary Receipts, net of (a) the amount
of any legal, title, accounting, investment banking and recording tax expenses,
commissions and other reasonable and necessary fees and expenses payable by any
Loan Party or its Subsidiaries in connection with the subject transaction, (b) any
foreign or U.S. federal, state and local income or other taxes estimated to be
payable by any Loan Party or its Subsidiaries (or their stockholders) as a
result of such transaction, and (c) any repayments (including reasonable
expenses in connection therewith) of Indebtedness to the extent that (x) such
Indebtedness is secured by a Lien on an asset that is the subject of the
transaction, and (y) the transferee of (or holder of a Lien on) such asset
requires that such Indebtedness be repaid as a condition to the subject
transaction.

 

“Notes” means, collectively, the Revolving Credit Notes and
the Term Notes.

 

“Obligations” means,
collectively, the obligations of the Borrower or of any other Loan Party to pay
to the Credit Parties or to perform for the benefit of the Credit Parties,
M&T Bank or any of their Affiliates (a) sums due arising out of or in
connection with the Loans or otherwise pursuant to the terms of the Notes, and
the other Credit Documents, including without limitation all unpaid principal,
accrued interest (including interest that accrued during any Insolvency
Proceedings of the Borrower), fees and expenses, (b) indemnification and reimbursement
duties and obligations owed in accordance with the terms of any of the Credit
Documents, (c) Credit Party Expenses, (d) reimbursement, repayment or
indemnity obligations owed by the Borrower or any of the other Loan Parties to
any Credit Party or to an Affiliate of a Credit Party arising out of or related
to Bank Products, (e) all payment and indemnification obligations owed by
the Borrower to the Issuing Lender or to any other Credit Party which arise out
of or relate to any Letters of Credit, including all of the LC Obligations, (f) all
obligations, duties, or sums due to any Interest Rate Hedge Provider pursuant
to or arising from any Interest Rate Hedge Agreements, (g) payments owed
to M&T Bank in accordance with the Fee Letter, (h) any indebtedness or
liability which may exist or arise as a result of any payment made by or for
the benefit of any of the Credit Parties being avoided or set aside for any
reason including any payment being avoided as a preference under Sections 547
and 550 of the Bankruptcy Code, as amended, or under any state law governing
insolvency or creditors’ rights, and (i) any interest on any portion of
the Loans that accrues after the commencement of any Insolvency Proceeding.

 

16

 

“Organization
Documents” means (a) with respect to any corporation, the
certificate or articles of incorporation and the bylaws (or equivalent or
comparable constitutive documents with respect to any non-U.S. jurisdiction), (b) with
respect to any limited liability company, the certificate or articles of
formation or organization and operating agreement, and (c) with respect to
any partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation or
organization and any agreement, instrument, filing or notice with respect
thereto filed in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its formation or
organization and, if applicable, any certificate or articles of formation or
organization of such entity.

 

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

 

“PBGC” means the Pension Benefit Guaranty Corporation.

 

“Participant” has the meaning provided to such term in Section 10.11
of this Agreement.

 

“Participation” means an undivided participation interest
sold by a Lender, in accordance with the provisions of Section 10.11, in
such Lender’s Commitments, Loans and rights and obligations under this
Agreement and the other Credit Documents.

 

“Pension Plan” means any “employee pension benefit plan” (as
such term is defined in Section 3(2) of ERISA), other than a
Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or
maintained by the Borrower or any ERISA Affiliate or to which the Borrower or
any ERISA Affiliate contributes or has an obligation to contribute, or in the
case of a multiple employer or other plan described in Section 4064(a) of
ERISA, has made contributions at any time during the immediately preceding five
plan years.

 

“Permitted Acquisition” means any Investment after the
Closing Date by the Borrower in any Person located within the United States,
whose business operations are consistent with the operations of the Borrower
and its Subsidiaries, provided that (a) there are no then continuing
Defaults or Events of Default and no Material Adverse Change has occurred, and
immediately after giving effect to such Investment there will not be any
Defaults, Events of Default or Material Adverse Change, (b) with respect
to such Investment, the Borrower shall have submitted to each of the Credit
Parties, not less than fifteen (15) days before the Borrower becomes bound
under any agreement to make such Investment, (i) a description of the
transaction pursuant to which such Investment is to be made, accompanied by
substantially final drafts of all material definitive documents for such
transaction, (ii) pro forma financial statements for the Borrower and its
Subsidiaries after giving effect to such Investment, (iii) updated and
revised financial projections which incorporate the Acquisition Target’s
projected results of operations into the financial projections of the Borrower
and its Subsidiaries then most recently submitted to the Credit Parties,
projecting the compliance by the Borrower and its Subsidiaries with all
covenants of this Agreement after giving effect to the Investment, (iv) a
certification given by an Authorized Officer of the Borrower to the effect that
no Default or Event of Default then exists, no Material Adverse Change has
occurred, and that no Default, Event of Default or Material Adverse Change is
reasonably expected to occur upon or as a result of the proposed acquisition,
and (c) the aggregate amount of all consideration payable for such
acquisition, which when combined with the aggregate amount of all consideration
paid by the Borrower and its Subsidiaries pursuant to other Permitted
Acquisitions occurring in the same Fiscal Year, shall not be more than Fifty
Million Dollars ($50,000,000.00).

 

“Permitted Encumbrances” means collectively:

 

17

 

(a)           Liens for taxes, assessments,
governmental levies or similar charges incurred in the ordinary course of business
and which are not yet due and payable, or if due and payable, (i) are
being contested in good faith and by appropriate and lawful proceedings
diligently conducted, but only so long as such proceedings could not reasonably
subject any Credit Party to any civil or criminal penalties or liabilities and (ii) for
which such reserves or other appropriate provisions, if any, as shall be
required by GAAP shall have been made and (iii) which shall be paid in
accordance with the terms of any final non-appealable judgments or orders
relating thereto within thirty (30) days after the entry of such judgments or
orders,

 

(b)           Pledges or deposits made in the
ordinary course of business to secure payment of worker’s compensation, or to
participate in any fund in connection with worker’s compensation, unemployment
insurance, old-age pensions, other social security programs or similar program
or to secure liability to insurance carriers under insurance or self insurance
agreements or arrangement,

 

(c)           Liens of mechanics, materialmen,
warehousemen, carriers, or other like Liens, securing obligations incurred in
the ordinary course of business that are not yet due and payable and Liens of
landlords securing obligations to pay lease payments that are not yet due and
payable or in default, or if such Liens are due and payable, (i) are being
contested in good faith and by appropriate and lawful proceedings diligently
conducted and (ii) for which such reserves or other appropriate
provisions, if any, as required by GAAP shall have been made and (iii) which
shall be paid in accordance with the terms of any final non-appealable
judgments or orders relating thereto within thirty (30) days after the entry of
such judgments or orders,

 

(d)           Pledges or deposits made in the
ordinary course of business to secure performance of bids, tenders, contracts
(other than for the repayment of borrowed money) or leases, not in excess of
the aggregate amounts due thereunder, or to secure statutory obligations, or
surety, appeal, indemnity, performance or other similar bonds required in the
ordinary course of business,

 

(e)           (i) Encumbrances consisting of
zoning restrictions, easements, rights-of-way, or other restrictions on the use
of real property, (ii) defects in title to real property, and (iii) Liens,
encumbrances and title defects affecting real property not known by the
Borrower or a Subsidiary, as applicable, and not discoverable by a search of
the public records, none of which materially impairs the use of such property,

 

(f)            Liens created by or resulting from
any litigation or legal proceedings which are currently being contested in good
faith by appropriate and lawful proceedings diligently conducted and for which
such reserves or other appropriate provisions, if any, as shall be required by GAAP
shall have been made and Liens arising out of judgments or orders for the
payment of money which do not constitute an Event of Default hereunder,

 

(g)           Liens placed upon personal property
constituting fixed assets or equipment hereafter acquired to secure all or a
portion of the purchase price thereof, provided that any such Lien shall not
encumber any other property of any Loan Party (other than proceeds of the
foregoing) and the Indebtedness secured by any such Lien shall not be otherwise
prohibited by the terms of this Agreement,

 

(h)           Other Liens incidental to the conduct
of the Loan Parties’ businesses or the ownership of their respective properties
and assets which were not incurred in connection with the borrowing of money or
the obtaining of advances or credit, and which do not in the aggregate
materially detract from the value of the Loan Parties’ properties or assets and
or which do not materially impair the use thereof in the operation of the Loan
Parties’ business,

 

(i)            Liens securing the Obligations, and

 

18

 

(j)            Precautionary financing statements
filed in connection with leases of equipment which pertain solely to such
leased equipment.

 

“Person” means any individual, corporation, partnership, limited
liability company, association, joint-stock company, trust, unincorporated
organization, joint venture, government or political subdivision or agency
thereof, or any other entity.

 

“Plan” means any “employee benefit plan” (as such term is
defined in Section 3(3) of ERISA) established by any Loan Party or,
with respect to any such plan that is subject to Section 412 of the Code
or Title IV of ERISA, any ERISA Affiliate.

 

“Prime Rate” means the rate
of interest per annum publicly announced from time to time by the Agent, in its
sole discretion, as its prime lending rate of interest.  Such announced rate bears no inference,
implication, representation or warranty that such announced rate is charged to
any particular customer or customers of Agent. 
The Agent’s prime lending rate of interest is but one of several
interest rate bases used by the Agent. 
Changes in the applicable interest rate shall be made as of, and
immediately upon the occurrence of, changes in the Agent’s prime rate.

 

“Principal Payment Date” means the last Business Day
of each consecutive Fiscal Quarter and the Term Loan Maturity Date.  The first Principal Payment Date is the last
Business Day of the Fiscal Quarter in which the Funding Date occurs.

 

“Prohibited Transaction” shall mean any prohibited
transaction as defined in Section 4975 of the Code or Section 406 of
ERISA that is not exempt under Section 408 of ERISA and for which neither
an individual nor a class exemption has been issued by the United States
Department of Labor.

 

“Property” means, any parcel of real property, whether owned
in fee or leased, of any of the Loan Parties.

 

“Purchase Agreement” means the Agreement And
Plan of Merger by and among the Borrower, Amerifit, AB Merger Sub, Inc.,
Charter Amerifit Holding Corporation (now known as Martek Amerifit Holding
Corporation), Amerifit Brands, Inc., AB SR LLC, and Pearl, LLC, all
schedules and exhibits thereto and all agreements to be executed in connection
therewith.

 

“Register” has the meaning given to such term in Section 10.09
of this Agreement.

 

“Regulatory Change” means any change after the
Closing Date in the Laws of the United States, any state thereof, or any other
Governmental Authority, or the adoption or making after such date, of any
interpretations, changes in convention, directives or requests applying to a
class of depository institutions, including any Lender, of or under any Laws of
the United States, any state thereof, or any other Governmental Authority
(whether or not any such interpretation, directive or request has the force of
Law).

 

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

 

“Reportable Event” means any of the events set
forth in Section 4043(c) of ERISA, other than events for which the
thirty (30) day notice period has been waived.

 

“Required Lenders” means, at any time of
determination, Lenders holding in the aggregate more than fifty-one percent
(51%) of (a) the aggregate outstanding unpaid principal balances of the
Loans plus the aggregate unused Revolving Credit Commitments at such time (and
participation 

 

19

 

interests
therein) (treating for purposes hereof in the case of LC Obligations, in the
case of the Issuing Lender, only the portion of the LC Obligations of the
Issuing Lender which is not subject to the participation interests of the other
Lenders and, in the case of the Lenders other than the Issuing Lender, only the
participation interests of such Lenders in LC Obligations hereunder as being “held”
by such Lenders) or (b) if the Revolving Credit Commitments have been
terminated, the aggregate outstanding unpaid principal balances of the Loans
and participation interests (including, in the case of the Issuing Lender, the
portion of the LC Obligations held by the Issuing Lender), provided
however, the Revolving Credit Commitments and the portions of the
unpaid principal balances of the Loans held or deemed held by any Defaulting
Lenders shall be excluded for the purposes of making any determination of
Required Lenders.

 

“Restricted Payment” means collectively, with respect to the Loan
Parties and each of their Subsidiaries (a) any dividend or other payment
or distribution, direct or indirect, on account of any Equity Interest in such
Person now or hereafter outstanding, except (i) a dividend or distribution
payable solely in the same class or type of Equity Interest to the holders of
that class or type, and (ii) any distribution payable to an employee or
director pursuant to the terms of any restricted share plan in connection with
any tax liabilities of such Person, (b) any redemption, repurchase,
conversion, exchange, retirement, sinking fund or similar payment, purchase or
other acquisition for value, direct or indirect, by such Person of any Equity
Interest in such Person now or hereafter outstanding (other than (i) repurchases
of Equity Interests held by employees or directors pursuant to the terms of any
restricted share plan of the Borrower, which in aggregate amount in any Fiscal
Year do not exceed One Million Dollars ($1,000,000.00), and (ii) repurchase
by the Borrower of Equity Interests of the Borrower in any Fiscal Year in an
aggregate amount not exceeding Five Million Dollars ($5,000,000.00), provided
that in the event there are no sums outstanding under the Revolving Credit
Loans, the Borrower may use cash and Cash Equivalents to repurchase Equity
Interests in an aggregate amount not exceeding Twenty Million Dollars
($20,000,000.00) in any Fiscal Year), (c) any payment made by such Person
to retire, or to obtain the surrender of, any outstanding warrants, options or
other rights to acquire Equity Interests in such Person now or hereafter outstanding,
or (d) any payment by such Person of any management, consulting or similar
fees which are not payments in amounts comparable to sums paid in the
marketplace by entities comparable to the payor for similar services to
unrelated employees or providers of management, consulting or other services
actually performed.

 

“Restricted Subsidiary” means any Subsidiary of the Borrower
which is not (and is not required by the terms of this Agreement to be) a
Guarantor.

 

“Revolving Credit Commitment” means, as to any Lender, the
amount initially set forth as on a Lender Addendum under the heading “Revolving
Credit”, and thereafter as set forth on any relevant Assignment And Assumption.

 

“Revolving Credit Commitment Percentage” means, as to any
Lender, the percentage initially set forth on a Lender Addendum under the
heading “Revolving Credit” and thereafter on any relevant Assignment And
Assumption, if applicable, as the same may be adjusted from time to time
pursuant to this Agreement.

 

“Revolving Credit Loans” means collectively, the Revolving
Credit Loans made by the Lenders to the Borrower in accordance with Section 2.01
of this Agreement.

 

“Revolving Credit Maximum Borrowing Amount” means One
Hundred Million Dollars ($100,000,000.00), as such sum may be decreased from
time to time by the operation of Section 2.01.6 of this Agreement or
increased from time to time by the operation of Section 2.01.7 of this
Agreement.

 

20

 

“Revolving Credit Notes” means, collectively, the
promissory notes of the Borrower evidencing the Revolving Credit Loans,
together with all amendments or replacements thereto.  The Revolving Credit Notes shall be in the
form of Exhibit D attached hereto.

 

“Revolving Credit Termination Date” means the third annual
anniversary date of the Funding Date.

 

“Revolving Credit Unused Fee” has the meaning given to such
term in Section 2.01.5 of this Agreement.

 

“Security Agreement” means the Security
Agreement of even date herewith between the Borrower, the Guarantors, and the
Agent, together with all counterparts thereof hereafter executed.

 

“Security Documents” means, collectively, the
Security Agreement, all pledges, mortgages, deeds of trust, control agreements,
or other agreements, instruments, documents or filings pursuant to which any of
the Loan Parties, from time to time, pledges or grants Liens for the benefit of
the Credit Parties in or to any of the Collateral.

 

“Senior Indebtedness” means, as of any date of determination (a) the
aggregate unpaid balances of the Loans; plus (b) the aggregate outstanding
LC Obligations.

 

“Senior Leverage Ratio” means, as of any date of
determination, the ratio of (a) Senior Indebtedness as of such date of
determination to (b) Consolidated EBITDA for the period of the four (4) Fiscal
Quarters most recently ended prior to such date of determination.

 

“Shareholders’ Equity” means, as of any date of
determination, consolidated shareholders’ equity of the Borrower and its
Subsidiaries as of that date determined in accordance with GAAP.

 

“Short-Term Investments” means (a) securities
issued or directly and fully guaranteed or insured by the United States
Government or any agency or instrumentality thereof having maturities of more
than one year from the date of acquisition but not more than two years from the
date of acquisition, (b) time deposits, certificates of deposit and
Eurodollar time deposits with maturities of more than twelve (12) months but
not more than twenty-four (24) months from the date of acquisition and bankers’
acceptances with maturities exceeding twelve (12) months but not exceeding
twenty-four (24) months from the date of acquisition, in each case with the
Agent or any Lender or with any domestic commercial bank having capital and
surplus in excess of Five Hundred Million Dollars ($500,000,000), (c) repurchase
obligations with a term of not more than thirty (30) days for underlying
securities of any of the types described in clause (a) or (b) and
entered into with any bank meeting the qualifications specified in clause (b) above,
(d) commercial paper with maturities exceeding twelve (12) months but not
exceeding twenty-four (24) months rated not lower than A-1 or A-2 by Standard &
Poor’s Ratings Group or P-1 or P-2 by Moody’s Investors Service, Inc. on
the date of acquisition, and (e) interests in pooled investment funds
(including mutual funds and money market funds) the assets of which are
invested in investments referred to in items (a) through (d) above
and in investments referred to in items (a) through (d) of the
definition of Cash Equivalents.

 

“Solvent” means, with respect to any Person on a particular
date, that on such date (a) the fair value of the property of such Person
is greater than the total amount of liabilities, including, without limitation,
contingent liabilities, of such Person, (b) the present fair salable value
of the assets of such Person is not less than the amount that will be required
to pay the probable liability of such Person on its debts as they become
absolute and matured, (c) such Person is able to pay its debts and other
liabilities as they mature in the normal course of business, (d) such
Person does not intend to, and does not believe that it will, incur debts or
liabilities beyond such Person’s ability to pay as such debts and liabilities
mature, 

 

21

 

and
(e) such Person is not engaged in business or a transaction, and is not
about to engage in business or a transaction, for which such Person’s property
would constitute unreasonably small capital after giving due consideration to
the prevailing practice in the industry in which such Person is engaged or
about to be engaged, as the case may be. In computing the amount of contingent
liabilities at any time, it is intended that such liabilities will be computed
at the amount which, in light of all the facts and circumstances existing at
such time, represents the amount that can reasonably be expected to become an
actual or matured liability.

 

“Stated Amount” means as to any Letter of Credit, the lesser
of (a) the face amount thereof, or (b) the remaining available
undrawn amount thereof (regardless of whether any conditions for drawing could
then be met).

 

“Subsidiary” means, with
respect to any Person (the “parent”) at any date, any corporation, limited
liability company, partnership, association or other entity the accounts of
which would be consolidated with those of the parent in the parent’s
consolidated financial statements if such financial statements were prepared in
accordance with GAAP as of such date, as well as any other corporation, limited
liability company, partnership, association or other entity of which securities
or other ownership interests representing more than fifty percent (50%) of the
equity or more than fifty percent (50%) of the ordinary voting power or, in the
case of a partnership, more than fifty percent (50%) of the general partnership
interests are, as of such date, owned, controlled or held by the parent or one
or more subsidiaries of the parent.

 

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

 

“Synthetic Lease Obligation” means the monetary obligation of
a Person under (a) a so-called synthetic, off-balance sheet or tax
retention lease, or (b) an agreement for the use or possession of property
creating obligations that do not appear on the balance sheet of such Person but
which, upon the insolvency or bankruptcy of such Person, would be characterized
as the indebtedness of such Person (without regard to accounting treatment).

 

“Tax Distributions” 
means quarterly distributions by the Borrower to its holders of Capital
Stock in such amounts as are reasonably calculated to ensure that each holders
of Capital Stock shall be able to pay estimated installments of the federal,
state and local tax on the income derived by such holders of Capital Stock for
such quarter from the holder’s ownership of Capital Stock in the Borrower.  For the purposes of computing Tax
Distributions, it shall be assumed that all income allocated to the holders of
Capital Stock of the Borrower is taxable for estimated tax purposes by the
appropriate federal, state and local taxing authorities at the highest
individual marginal tax rates.  The
amount of the Tax Distributions shall be reduced by any amounts paid or
required to be paid by the Borrower on behalf of any of its holders of Capital
Stock to any taxing authorities.

 

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

 

“Term Loan Commitment” means, as to any Lender,
the amount set forth as such on a Lender Addendum under the heading “Term Loan”,
and thereafter on any relevant Assignment And 

 

22

 

Assumption,
and “Term Loan Commitments” shall mean the
aggregate Term Loan Commitments of all of the Lenders, which as of the Closing
Date is the amount of Seventy-Five Million Dollars ($75,000,000).

 

“Term Loan Commitment Percentage” means, as to any Lender,
the percentage initially set forth as such on a Lender Addendum under the
heading “Term Loan” and thereafter on any relevant Assignment And Assumption.

 

“Term Loan Maturity Date” means the third annual
anniversary date of the Funding Date.

 

“Term Loan Notes” means, collectively, the promissory notes of
the Borrower evidencing the Term Loans in the form of Exhibit E attached
hereto, together with all amendments and replacements thereof.

 

“Term Loans” means collectively the term loans extended by the
Lenders to the Borrower as an obligor in accordance with the provisions of Section 2.04
of this Agreement.

 

“Threshold Amount” means Five Million Dollars
($5,000,000.00).

 

“Unfunded Pension Liability” means the excess of a
Pension Plan’s benefit liabilities under Section 4001(a)(16) of ERISA,
over the current value of that Pension Plan’s assets, determined in accordance
with the assumptions used for funding the Pension Plan pursuant to Section 412
of the Code for the applicable plan year.

 

“Uniform Commercial Code” or “UCC”
means the Uniform Commercial Code as adopted and in effect from time to time in
the Governing State.

 

Section 1.02.          Terms Generally.  The
definitions of terms herein shall apply equally to 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.”  Unless the
context requires otherwise, (a) any definition of or reference to any
agreement, instrument or document herein shall be construed as referring to
such agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any
reference herein to any Person shall be construed to include such Person’s
successors and assigns, (c) the words “herein,” “hereof” and “hereunder,”
and words of similar import, shall be construed to refer to this Agreement in
its entirety and not to any particular provision hereof, (d) all
references herein to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
this Agreement, (e) the words “asset” and “property” shall be construed to
have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, securities, accounts and
contract rights, (f) each reference to a time shall be a reference to the
prevailing Eastern U.S. time, and (g) Article and Section headings
and the Table of Contents used herein are for convenience of reference only,
are not part of this Agreement and shall not affect the construction of, or be
taken into consideration in interpreting, this Agreement.

 

Section 1.03.          Accounting Principles.  Except as otherwise provided in this Agreement, all
computations and determinations as to accounting or financial matters and all
financial statements to be delivered pursuant to this Agreement shall be made
and prepared in accordance with GAAP (including principles of consolidation
where appropriate), and all accounting or financial terms shall have the
meanings ascribed to such terms by GAAP In the event GAAP changes after the
date hereof in a manner that causes noncompliance with the covenants hereof,
the parties hereto shall agree in good faith to modify the covenants and the
related defined terms to compensate for such change in GAAP.

 

23

 

ARTICLE 2

CREDIT FACILITIES

 

Section 2.01.          Revolving Credit Loans. During the Commitment Period, subject
to the terms and conditions of this Agreement and the other Credit Documents,
each of the Lenders severally agrees to make revolving credit loans (the “Revolving
Credit Loans”) to the Borrower from time to time until the Revolving Credit
Termination Date; provided, however, that (a) the aggregate
unpaid principal balance of the Revolving Credit Loans plus the outstanding LC
Obligations shall not at any time exceed the Revolving Credit Maximum Borrowing
Amount, and (b) with regard to each Lender, the sum of (i) the unpaid
aggregate principal balances of Revolving Credit Loans held by such Lender, and
(ii) such Lender’s LC Commitment of outstanding LC Obligations, shall not
exceed the amount of such Lender’s Revolving Credit Commitment.  The Borrower shall not request any advances
of proceeds of the Revolving Credit Loans which would cause the aggregate
unpaid principal balances of the Revolving Credit Loans to exceed the
above-stated limitations.  In the event
that the aggregate unpaid principal balances of the Revolving Credit Loans
exceed the above-stated limitations, the Borrower shall immediately make such
payments to the Agent as will be sufficient to reduce the aggregate unpaid
principal balances of the Revolving Credit Loans to an aggregate amount which
will not be in excess of such limitations. 
Each Revolving Credit Loan extended by a Lender shall be in a principal
amount equal to the Lender’s Revolving Credit Commitment Percentage of the
aggregate principal amount of the Revolving Credit Loans requested on such
occasion.  Subject to the satisfaction of
the terms and conditions of this Agreement and of the other Credit Documents,
the Borrower may borrow, prepay, and reborrow the Revolving Credit Loans in
whole or in part until the Revolving Credit Termination Date.  Revolving Credit Loans may consist of
Adjusted Base Rate Borrowings or LIBOR Borrowings, or a combination thereof, as
the Borrower may request in accordance with the terms hereof.

 

2.01.1      Revolving Credit Loan
Promissory Notes.  The
obligation of the Borrower to repay the Revolving Credit Loans to each Lender
shall be evidenced by a Revolving Credit Note. 
The Borrower shall deliver a Revolving Credit Note on the date of
Closing to each of the Lenders executed by an Authorized Officer of the
Borrower, with the face amount of each of such Revolving Credit Notes to be in
the amount of the Revolving Credit Commitment of the respective Lender.

 

2.01.2      Procedure For Revolving
Credit Loan Borrowings.  The
Borrower may borrow proceeds of the Revolving Credit Loans until (but not
including) the Revolving Credit Termination Date, provided, that the Borrower
delivers to the Agent an irrevocable notice (“Loan Request”) from an Authorized
Officer of the Borrower (which Loan Request must be received by the Agent prior
to 10:00 a.m.) (a) two (2) Business Days prior to the requested
Borrowing Date, if all or any part of the requested advances of proceeds of the
Revolving Credit Loans are to be initially LIBOR Borrowings, or (b) on the
requested Borrowing Date if all of the requested advances of proceeds of the
Revolving Credit Loans are to be initially Adjusted Base Rate Borrowings.  Each Loan Request shall specify: (i) the
aggregate amount to be borrowed, (ii) the requested Borrowing Date, (iii) whether
the borrowing is to be a LIBOR Borrowing, an Adjusted Base Rate Borrowing, or a
combination thereof, and (iv) if the borrowing is to be entirely or partly
a LIBOR Borrowing, the information required to be specified in the election
described in Section 2.05.2(a) of this Agreement.  The Loan Requests may be delivered to the
Agent via facsimile or by other electronic transmission or by telephonic
request, it being agreed that the Agent may rely on the authority of the Person
making any such request without receipt of any other confirmation.  The Agent shall promptly notify each Lender
of the Agent’s receipt of each notice and the contents thereof.  Each Lender shall make the amount of its pro rata share (calculated in accordance with its respective
Revolving Credit Commitment Percentage) of each requested borrowing available
to the Agent for the account of the Borrower at the offices of the Agent
specified in this Agreement prior to 12:00 Noon on the Borrowing Date requested
by the Borrower in U.S. Dollars and in funds immediately available to the
Agent.  Such borrowing will be made
available to the Borrower on or prior to 1:00 p.m. by the Agent crediting
the Borrower’s depository account maintained by the Agent with the aggregate of

 

24

 

the
amounts made available to the Agent by the Lenders and in like funds as
received by the Agent to an account maintained by the Borrower with the Agent.

 

2.01.3      Repayment Of Revolving Credit
Loans.  The Borrower unconditionally
promises to pay to the Agent for the accounts of the Lenders the then unpaid
principal amount of each Revolving Credit Loan of the Lenders on or before the
Revolving Credit Termination Date (or on any earlier date on which the
Revolving Credit Loans become due and payable as required by the stated
provisions of this Agreement). The Borrower unconditionally promises to pay to
the Agent for the ratable accounts of the Lenders all interest which has
accrued upon the unpaid principal amounts of the Revolving Credit Loans from
time to time outstanding from the date of Closing until the date of payment in
full of the Revolving Credit Loans at the rates per annum and on the dates set
forth in Section 2.04 of this Agreement. 
All sums due to the Lenders in connection with the Revolving Credit
Loans shall be paid in full on or before the Revolving Credit Termination Date.

 

2.01.4      Permitted Purposes Of Revolving
Credit Loans.  The proceeds
of the Revolving Credit Loans shall be used by the Borrower solely for the
general working capital needs and for the general corporate purposes of the
Borrower and its Subsidiaries.

 

2.01.5      Revolving Credit Unused
Fees.  For each Fiscal Quarter
until the termination of the Revolving Credit Commitments, the Borrower agrees
to pay to the Agent for the ratable accounts of the Lenders a per annum fee
(the “Revolving Credit Unused Fee”)
calculated by subtracting (a) the sum of (i) the average daily
disbursed aggregate principal balances of the Revolving Credit Loans during
such Fiscal Quarter (calculated on the basis of the actual number of days
elapsed in a year of 360 days) and (ii) the aggregate amount of LC
Obligations from (b) the Revolving Credit Maximum Borrowing Amount
(as such Revolving Credit Maximum Borrowing Amount may be reduced from time to
time in accordance with Section 2.01.6 of this Agreement or increased from
time to time in accordance with Section 2.01.7 of this Agreement), and
multiplying any positive difference thereof by the Applicable Margin then in
effect. The Revolving Credit Unused Fee shall be payable in arrears on the
first Business Day of each succeeding Fiscal Quarter with the first of such
payments to be scheduled for payment on May 1, 2010.

 

2.01.6      Permanent Reduction Of Revolving
Credit Maximum Borrowing Amount.  The Borrower shall have the right at any time,
upon not less than ten (10) Business Days prior written notice to the
Agent, to permanently reduce, in whole or in part, without premium or penalty,
the Revolving Credit Maximum Borrowing Amount, provided that (a) each
reduction shall be in an amount of not less than Two Hundred Fifty Thousand
Dollars ($250,000.00) or, if greater, a multiple of Fifty Thousand Dollars
($50,000.00), and (b) no reduction shall be permitted if, after giving
effect thereto, and to any repayments of the Revolving Credit Loans made on the
effective date thereof, the sum of the aggregate principal balances of the
Revolving Credit Loans then unpaid and outstanding plus the aggregate
amount of LC Obligations outstanding would exceed the Revolving Credit Maximum
Borrowing Amount then in effect.

 

25

 

2.01.7      Increase in Revolving Credit Commitments.

 

(a)           Request
for Increase.  Provided there exists no continuing Default or
Event of Default, upon notice to each of the Credit Parties, the Borrower may
from time to time request an increase in the aggregate amount of Revolving
Credit Commitments by an amount (for all such requests) not exceeding Fifty
Million Dollars ($50,000,000.00); provided that (i) any such request
for an increase shall be in a minimum amount of Five Million Dollars
($5,000,000.00), and (ii) the Borrower may make a maximum of three (3) such
requests.  At the time of sending such
notice, the Borrower (in consultation with the Agent) shall specify the time
period within which each Lender is requested to respond (which shall in no
event be less than ten (10) Business Days from the date of delivery of
such notice to the Lenders).

 

(b)           Lender
Elections to Increase.  Each Lender
shall notify the Agent within such time period whether or not it agrees to
increase its Revolving Credit Commitment and, if so, whether by an amount equal
to, greater than, or less than its Revolving Credit Commitment Percentage of
such requested increase.  Any Lender not
responding within such time period shall be deemed to have declined to increase
its Commitment.

 

(c)           Notification
by Agent; Additional Lenders.  The Agent shall
notify the Borrower and each Lender of the Lenders’ responses to each request
made hereunder.  To achieve the full
amount of a requested increase and subject to the approval of the Agent and the
Issuing Lender (which approvals shall not be unreasonably withheld), the
Borrower may also invite additional Eligible Assignees to become Lenders
pursuant to a joinder agreement in form and substance satisfactory to the Agent
and its counsel.

 

(d)           Effective
Date and Allocations.  If the
aggregate amount of Revolving Credit Commitments are increased in accordance
with this Section, the Agent and the Borrower shall determine the effective
date (the “Increase Effective Date”) and the final allocation of such
increase.  The Agent shall promptly
notify the Borrower and the Lenders of the final allocation of such increase
and the Increase Effective Date.

 

(e)           Conditions
to Effectiveness of Increase.  As a condition
precedent to such increase, the Borrower shall deliver to the Agent a
certificate of each Loan Party dated as of the Increase Effective Date (in
sufficient copies for each Lender) signed by a Authorized Officer of such Loan
Party (i) certifying and attaching the resolutions adopted by such Loan
Party approving or consenting to such increase, and (ii) in the case of
the Borrower, certifying that, before and after giving effect to such increase,
(A) the representations and warranties of the Borrower contained in this
Agreement and the other Credit Documents are true and correct on and as of the
Increase Effective Date, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they are true
and correct as of such earlier date, and (B) no Default or Event of
Default has occurred and is continuing. 
The Borrower shall prepay any Revolving Credit Loans outstanding on the
Increase Effective Date to the extent necessary to keep the outstanding
Revolving Credit Loans held by each Lender ratable with any revised Revolving
Credit Commitment Percentages arising from any nonratable increase in the
Revolving Credit Commitments under this Section.

 

(f)            Conflicting
Provisions.  This Section 2.01.7
shall supersede any provisions in Section 2.06.3 or 10.03 to the contrary.

 

Section 2.02.          Letter of Credit Subfacility. 
Subject to the terms and conditions set forth in this Agreement, the
Borrower may request the issuance of, and the Issuing Lender in reliance upon
the agreements of the Lenders set forth in Section 2.02.3 agrees to issue,
Letters of Credit for the accounts of the Borrower’s or any of its
Subsidiaries, in a form acceptable to the Issuing Lender, at any time and from
time to time on any Business Day from the Closing Date through, but not
including the LC Expiration 

 

26

 

Date, provided, however, that (a) no Default or Event of Default has
occurred and is then continuing, (b) the aggregate amount of LC
Obligations (after giving effect to any requested issuance) shall not at any
time exceed the Letter of Credit Sublimit, (c) the sum of the aggregate
unpaid balances of the Revolving Credit Loans plus the aggregate amount
of LC Obligations (after giving effect to any requested issuance) shall not
exceed the Revolving Credit Maximum Borrowing Amount, (d) all Letters of
Credit shall be denominated in Dollars, and not in any other currency, (e) Letters
of Credit shall be issued for lawful corporate purposes and shall be issued as
standby letters of credit, (f) the issuance of any Letter of Credit shall
not violate any policies of the Issuing Lender, and (g) no Letter of
Credit shall contain any provision for automatic reinstatement of the Stated
Amount after any drawing thereunder.  In
the event of any inconsistency between the terms and conditions of this
Agreement and the terms and conditions of any form of Letter of Credit
Application or other LC Document submitted by the Borrower to, or entered into
by the Borrower with, the Issuing Lender relating to any Letter of Credit, the
terms and conditions of this Agreement shall control.

 

2.02.1.         Request for Issuance; Amendment; Renewal; Extension; Certain
Conditions.  To request the issuance of a Letter of
Credit (or the amendment, renewal or extension of an outstanding Letter of
Credit), the Borrower shall hand deliver or transmit by electronic
communication, if arrangements for doing so have been approved by the Issuing
Lender, to the Issuing Lender and the 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 together with a Letter of Credit
Application, and specifying the proposed date of issuance, amendment, renewal
or extension (which shall be a Business Day), the date on which such Letter of
Credit is to expire (which shall comply with Section 2.02.2), the amount
of such Letter of Credit, the name and address of the beneficiary thereof and
such other information as shall be necessary to prepare, amend, renew or extend
such Letter of Credit.  Upon receipt of
the Letter of Credit Application executed by an Authorized Officer of the
Borrower, the Issuing Lender shall process such Letter of Credit Application
and issue the Letter of Credit requested thereby, provided all fees and
expenses in connection with such Letter of Credit have been paid and all other
conditions precedent to the issuance of Letters of Credit have been satisfied
and, provided further, the Issuing Lender shall not be required to issue any
Letter of Credit earlier than three (3) Business Days after receipt by the
Issuing Lender of the Letter of Credit Application and of all of the
certificates, documents and other papers and information required by the
Issuing Lender which relate thereto.  The
Issuing Lender shall promptly furnish a copy of each Letter of Credit to the
Agent, the Borrower and to each of the Lenders. 
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 the proviso set forth
in Section 2.02(a) through (g) is satisfied.  The Issuing Lender shall not be obligated to
amend any Letter of Credit if the Issuing Lender would not be required at such
time to issue such Letter of Credit in its amended form under the terms of this
Agreement.

 

2.02.2.         Expiration Date.  Each Letter of Credit shall
expire at or prior to the close of business on the earlier of (a) the date
that is 365 days after the date of the issuance of such Letter of Credit (or,
in the case of any renewal or extension thereof, 365 days after such renewal or
extension) and (b) the LC Expiration Date, provided
that any Letter of Credit may provide for the automatic renewal thereof for
additional 365-day periods (which shall in no event extend beyond the LC
Expiration Date).

 

2.02.3.         Agreement of Lenders To Purchase Proportionate Share of Letters of
Credit.  In order to induce the Issuing Lender to issue Letters
of Credit for the account of the Borrower in accordance with the terms of this
Agreement, each Lender unconditionally and irrevocably agrees to accept and
purchase and hereby accepts and purchases from the Issuing Lender, on the terms
and conditions hereinafter stated, for such Lender’s own account and risk an
undivided interest equal to such Lender’s Revolving Credit Commitment
Percentage in the Issuing Lender’s obligations and rights under each Letter of
Credit issued hereunder and the amount of each LC Disbursement of the Issuing
Lender.  

 

27

 

Each Lender unconditionally and irrevocably covenants to the Issuing
Lender that, if an LC Disbursement is made by the Issuing Lender with respect
to any Letter of Credit for which the Issuing Lender is not immediately reimbursed
in full by the Borrower, such Lender shall pay to the Agent, for the account of
the Issuing Lender, upon the demand by the Agent, an amount equal to such
Lender’s Revolving Credit Commitment Percentage of the unreimbursed amount of
such LC Disbursement not later than 1:00 p.m. on the Business Day
specified by the Agent in its demand for payment. Any payment made by a Lender
pursuant to this paragraph to reimburse the Issuing Lender for any LC
Disbursement shall not constitute a Loan and shall not relieve the Borrower of
its obligation to reimburse such LC Disbursement.

 

2.02.4.         Reimbursement Obligations of the Borrower. 
The Borrower unconditionally and irrevocably agrees to reimburse the
Issuing Lender on each date on which either the Issuing Lender or the Agent
notifies the Borrower of an LC Disbursement for the amount of the LC
Disbursement, including but not limited to the amount of any draft so paid and
any taxes, charges, or other costs or expenses incurred by the Issuing Lender
in connection with such payment.  Each
drawing under any Letter of Credit shall be deemed to automatically constitute
a request by the Borrower to the Agent for an Adjusted Base Rate Borrowing of
proceeds of the Revolving Credit Loans in the amount of such drawing to be made
on the date on which either the Issuing Lender or the Agent notifies the
Borrower of the drawing, and the proceeds of such Adjusted Base Rate Borrowing
shall be advanced directly by the Agent to the Issuing Lender for application
to the Borrower’s reimbursement obligations set forth in this Section.

 

2.02.5.         Borrower’s Reimbursement Obligations Are Absolute. 
The Borrower’s reimbursement obligations hereunder shall be absolute and
unconditional under all circumstances and irrespective of any set-off, counterclaim
or defense to payment which the Borrower may have or has had against the Agent,
the Issuing Lender, any of the Lenders, any beneficiary of a Letter of Credit
or any other Person.  The Borrower agrees
that none of the Agent, the Issuing Lender, or the Lenders shall be responsible
for, nor shall the Borrower’s duties and obligations hereunder or under the
Credit Documents be affected by, among other things (a) the form,
validity, sufficiency, accuracy, genuineness or legal effect of any documents or
of any endorsements thereon presented in connection with any draft upon a
Letter of Credit, even though such documents shall in fact prove to be invalid,
fraudulent or forged, (b) any dispute between or among the Borrower and
any beneficiary of any Letter of Credit or any other party to which such Letter
of Credit may be transferred, or (c) any claims whatsoever of the Borrower
against any beneficiary of such Letter of Credit or any such transferee.  None of the Agent, the Issuing Lender, or any
of the Lenders shall be liable for any error, omission, interruption or delay
in transmission, dispatch or delivery of any message or advice, however
transmitted, in connection with the issuance, administration, or payment of any
drafts presented against any Letter of Credit. 
The Borrower agrees that any action taken or omitted by the Agent, the
Issuing Lender, or the Lenders under or in connection with any Letter of Credit
or the related drafts or documents shall be binding on the Borrower and shall
not result in any liability of any of the Agent, the Issuing Lender, or the
Lenders to the Borrower, absent gross negligence or willful misconduct.  In furtherance and not in limitation of the
foregoing, the Issuing Lender 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 the Issuing Lender shall not be
responsible for the validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign a Letter of Credit or the rights
or benefits thereunder or proceeds thereof, in whole or in part, which may
prove to be invalid or ineffective for any reason.

 

2.02.6.         Applicability of ISP98.  Unless
otherwise expressly agreed by the Issuing Lender and the Borrower, when a
Letter of Credit is issued the rules of the ISP shall apply to each
standby Letter of Credit.

 

2.02.7.         Interim Interest.  If the Issuing Lender shall
make any LC Disbursement, then, unless the Borrower shall reimburse such LC
Disbursement in full on the date such LC Disbursement is made, the unpaid
amount thereof shall bear interest, for each day from and including 

 

28

 

the date such LC Disbursement is made to but excluding the date that
the Borrower reimburses such LC Disbursement at the Adjusted Base Rate then
applicable to Revolving Credit Loans; provided that the Default Rate
shall apply during any continuing Event of Default.  Interest accrued pursuant to this paragraph
shall be for the account of the Issuing Lender, except that interest accrued on
and after the date of payment by any Lender pursuant to Section 2.02.3 to
purchase a participation from the Issuing Lender shall be for the account of
such purchasing Lender to the extent of such payment.

 

2.02.8.         Cash Collateralization.  Upon the
request of the Agent (a) if the Issuing Lender has honored any full or
partial drawing request under any Letter of Credit and such drawing has
resulted in an LC Borrowing (unless such LC Borrowing has been reimbursed by
the proceeds of a Revolving Credit Loan in accordance with Section 2.02.4),
or (b) if, as of the LC Expiration Date, any Letter of Credit for any
reason remains outstanding and partially or wholly undrawn, or (c) a
continuing Event of Default exists and the Loans have been accelerated and have
become due and payable in accordance with Section 8.01 of this Agreement,
the Borrower shall immediately “Cash Collateralize” all then outstanding LC
Obligations (in an amount determined as of the date of such LC Borrowing or the
LC Expiration Date or the date of acceleration of the Loans, as the case may
be).  As used herein, the term “Cash
Collateralize” means to pledge and deposit with or deliver to the Agent, for
the benefit of the Issuing Lender and the Lenders, as collateral (“Cash
Collateral”) for the LC Obligations, cash or deposit account balances in
accordance with documentation in form and substance reasonably satisfactory to
the Agent and the Issuing Lender (which documents are hereby consented to by
the Lenders).  The Borrower hereby grants
to the Agent, for the benefit of the Credit Parties, a security interest in all
of such cash, deposit accounts and all balances therein and all proceeds of the
foregoing.  Cash Collateral shall be
maintained in blocked, non-interest bearing deposit accounts held by the Agent.

 

2.02.9.         Letter of Credit Fees.  The Borrower
shall pay to the Agent, for the ratable accounts of the Lenders, a letter of
credit fee (the “Letter of Credit Fee”) on the aggregate daily Stated Amount of
the outstanding Letters of Credit at the rate equal to the Applicable Margin
for Revolving Credit Loans LIBOR Borrowings in effect from time to time,
provided, that upon the implementation of the Default Rate and for so long as
the same shall continue, the Letter of Credit Fee shall be increased to the
Default Rate.  Letter of Credit Fees
shall be payable (a) quarterly in arrears on the last Business Day of each
Fiscal Quarter occurring during the term of this Agreement, and (b) on the
Revolving Credit Termination Date or any other date on which the Revolving
Credit Commitments are terminated.  The
Borrower shall pay to the Agent, for the sole account of the Issuing Lender, a
fronting fee of 0.125% of the Stated Amount on any new or extended Letters of
Credit, plus such customary issuance, presentation, amendment and processing
fees and all standard costs or charges of the Issuing Lender relating to
letters of credit, as from time to time in effect.  Such fees and costs and charges shall be due
and payable on demand and shall be nonrefundable.

 

2.02.10.       Letters of Credit Issued for Other Loan Parties or Subsidiaries.  Notwithstanding that a Letter of Credit issued or
outstanding hereunder is in support of any obligations of, or is for the
account of another Loan Party or a Subsidiary of the Borrower or of another
Loan Party, the Borrower shall be obligated to reimburse the Issuing Lender
hereunder for any and all drawings under such Letter of Credit.  The Borrower hereby acknowledges that the
issuance of Letters of Credit for the accounts of other Loan Parties and
Subsidiaries of the Borrower and any other Loan Party inures to the benefit of
the Borrower, and that the Borrower’s business derives substantial benefits
from the businesses of such other Loan Parties and Subsidiaries.

 

2.02.11.       Increased Costs.  To the extent that after the Closing Date
any Governmental Authority imposes any condition or requirement upon the
Issuing Lender regarding the Letters of Credit and if the result of such
condition or requirement is to directly or indirectly increase the cost to the
Issuing Lender of issuing or maintaining any Letter of Credit, or to reduce the
effective yield to the Issuing Lender of the amount receivable in respect
thereof, then the Issuing Lender may any time after the additional cost is
incurred or the yield of the amount receivable is reduced, notify the Borrower
and 

 

29

 

the Agent, and the Borrower shall pay within ten (10) Business
Days after demand such amounts as the Issuing Lender may specify to be
necessary to compensate the Issuing Lender for such additional cost or reduced
receipt, together with interest on such amount from the date of the notice of
such event which results in such increased cost or reduction in amount
receivable until payment in full thereof at a rate equal at all times to the
Adjusted Base Rate applicable to Revolving Credit Loans.  The determination by the Issuing Lender of
any amount due hereunder as set forth in a certificate setting forth the
calculation thereof, shall, in the absence of manifest error, be final and
conclusive and binding.

 

Section 2.03.          Term Loans.  Subject to
the terms and conditions set forth herein, each Lender severally agrees to
extend a term loan (each such term loan, a “Term Loan”) to the Borrower in the
initially stated principal amount of each Lender’s respective Term Loan
Commitment.   The Term Loans may be
either Adjusted Base Rate Borrowings, or LIBOR Borrowings, or a combination
thereof.

 

2.03.1.         Term Loan Notes.  The obligations of the Borrower to repay the
Term Loans to each of the Lenders shall be evidenced by a Term Loan Note to be
issued to each Lender in the stated principal amount of each Lender’s
respective Term Loan Commitment.

 

2.03.2.         Payment.  The aggregate unpaid principal balances of
the Term Loans shall be paid to the Agent for the ratable accounts of the
Lenders in consecutive quarterly installments each in the amount of Three
Million Seven Hundred Fifty Thousand Dollars ($3,750,000.00) payable on each of
the Principal Payment Dates.   All
remaining unpaid balances of the Term Loans, including all unpaid principal,
unpaid and accrued interest and fees, shall be paid in full on the Term Loan
Maturity Date.  The Borrower
unconditionally promises to pay interest to the Agent for the accounts of the
Lenders on the unpaid principal balances of the Term Loans from time to time
outstanding from the date of Closing until the date of the payment in full of
the Term Loans at the rates per annum, and on the dates set forth in Section 2.04
of this Agreement.

 

2.03.3.         Mandatory Prepayments.  The Borrower
shall have the obligation to pay, or cause to be paid, to the Agent for the
accounts of the Lenders the following (collectively, “Mandatory Prepayments”):

 

(a)           Extraordinary Receipts.  The Borrower shall pay, or cause to be paid,
to the Agent the Net Available Proceeds of any Extraordinary Receipts within
five (5) Business Days of the receipt thereof by any Loan Party; provided,
that, at the option of the Borrower and as long as no Default of Event of
Default shall have occurred and be continuing or would be caused thereby, Net
Available Proceeds from Extraordinary Receipts (other than from proceeds from the
issuance of Indebtedness for borrowed money or Equity Issuances) in an
aggregate amount not exceeding Ten Million Dollars ($10,000,000.00) (i.e., when aggregated with all other Net Available Proceeds
not paid to the Agent as a Mandatory Prepayment) shall not be required to be
paid to the Agent as a Mandatory Prepayment so long as an Authorized Officer of
the Borrower delivers a certificate to the Agent within five (5) Business
Days of the receipt of the Net Available Proceeds stating that the applicable Loan
Party intends to use the Net Available Proceeds from the Extraordinary Receipts
(the “Reinvestable Proceeds”) to purchase assets to be used by such Loan Party
in its business (the “Qualified Assets”) within one hundred eighty (180) days
after receipt of such proceeds and setting forth the estimated cost of the
Qualified Assets.  After such election to
use the Reinvestable Proceeds, on the date which occurs one hundred eighty
(180) days after the receipt of the applicable Net Available Proceeds, the Borrower
shall (i) deliver a certificate of an Authorized Officer of the Borrower
to the Agent certifying as to the amount and use of such Reinvestable Proceeds
actually used to purchase Qualified Assets, and (ii) deliver to the Agent
for application in accordance with this Section 2.03.3, an amount equal to
the remaining unused Reinvestable Proceeds. 
The provisions of this Section 2.03.3(a) shall not be deemed a
waiver of or constitute the implied consent of the Credit Parties to any
transactions which are either prohibited by the terms of the Credit Documents
or which by the terms of any of the Credit Documents require the prior consent
of any or all of the Credit Parties.

 

30

 

(b)           Consolidated Excess Cash Flow Recapture.  Commencing for the Borrower’s Fiscal Year
ending October 31, 2010, the Borrower shall pay, or cause to be paid, to
the Agent for the account of the Lenders on or before each January 31st of each successive Fiscal Year an amount equal
to fifty percent (50%) of the Consolidated Excess Cash Flow achieved by the
Borrower and its Subsidiaries for the immediately ended Fiscal Year; provided,
however, the amount required to be paid for the Fiscal Year ending October 31,
2010 shall be prorated based on the portion of such Fiscal Year between the
Funding Date and October 31, 2010. 
The amount of any Mandatory Prepayments due from the Consolidated Excess
Cash Flow in any Fiscal Year shall be reduced by the amount of any voluntary
prepayments made by the Borrower or by any other Loan Party in accordance with Section 2.03.4
of this Agreement.

 

(c)           Application
Of Mandatory Prepayments.  The
Mandatory Prepayments shall be applied first to the unpaid balances of the Term
Loans, secondly to the unpaid balances of the Revolving Credit Loans, and
thirdly to any other unpaid Obligations. 
Mandatory Prepayments made upon the Term Loans shall be applied in the
inverse order of scheduled maturities.

 

2.03.4.         Voluntary Prepayments.  The Borrower
may, upon notice to the Agent, at any time or from time to time voluntarily
prepay the Term Loans in whole or in part without premium or penalty; provided
that (a) such notice must be received by the Agent not later than 11:00 a.m.
(i) three (3) Business Days prior to any date of prepayment of LIBOR
Borrowings, and (ii) on the date of prepayment of Adjusted Base Rate
Borrowings; and (b) any voluntary prepayment of the Term Loans shall be in
a principal amount of not less than Five Million Dollars ($5,000,000.00).  Each such notice shall specify the date and
amount of such prepayment and, if LIBOR Borrowings are to be prepaid, the
Interest Period(s) of such LIBOR Borrowings.  The Agent will promptly notify each Lender of
its receipt of each such notice, and of the amount of such Term Loan Commitment
Percentage of such prepayment.  If such
notice is given by the Borrower, the Borrower shall make such prepayment and
the payment amount specified in such notice shall be due and payable on the
date specified therein.  Any prepayment
of a LIBOR Borrowing shall be accompanied by all accrued interest on the amount
prepaid, together with any additional amounts required pursuant to Section 2.04.2(b)(iii).  Each such prepayment shall be applied to the
Term Loans in accordance with the Term Loan Commitment Percentages of the
Lender.

 

Section 2.04.          Interest Terms Applicable To The Loans.  Interest shall accrue upon the unpaid
principal balances of the Loans until the Loans have been repaid in full at the
rate or rates described below in this Section 2.04.  Interest shall be paid in arrears on the
applicable Interest Payment Dates.

 

2.04.1.         Adjusted Base Rate.  Absent a timely election by
the Borrower of a LIBOR Borrowing in accordance with Section 2.04.2 of
this Agreement, the unpaid balances of the Loans, including any balances of any
LIBOR Borrowings for which the applicable Interest Period has expired, shall be
deemed automatically to bear interest at the Adjusted Base Rate.  Changes in the Adjusted Base Rate shall be
made when and as changes in the Base Rate occur.  Each election by the Borrower of an Adjusted
Base Rate Borrowing shall be in the Minimum Borrowing Amount, or any multiple
thereof.

 

2.04.2.         LIBOR Borrowing Option.  Subject to the terms of this Section,
interest may accrue at the election of the Borrower for Interest Periods
selected by the Borrower, at the Adjusted LIBOR Rate on portions of the unpaid
principal balances of the Revolving Credit Loans and the Term Loans.  Any election for a LIBOR Borrowing shall be
subject to the following terms and conditions:

 

(a)           Notice Of Election.  An Authorized Officer of the Borrower shall
deliver by 10:00 a.m. on that Business Day which occurs two (2) Business
Days prior to the Business Day on which the Borrower desires that an Interest
Period commence, a written election to the Agent specifying: (i) the
commencement date of and length of the relevant Interest Period, (ii) a
statement as to whether the LIBOR Borrowing is to be applicable to the Term
Loans or the Revolving Credit Loans, and (iii) the 

 

31

 

Dollar
amount of that portion of the total aggregate principal amount of the Loans
identified by the Borrower, which are to bear interest at the Adjusted LIBOR
Rate, which amount: (A) shall not be less than the Minimum Borrowing
Amount; and (B) if elected with respect to the Term Loans shall not be in
a principal amount greater than that sum obtained by deducting the aggregate
amount of principal payments upon the Term Loans which are scheduled for payment
on Principal Payment Dates occurring prior to the end of the subject Interest
Period from the aggregate unpaid principal balances of the Term Loans.

 

(b)           Effect Of Election.  Interest shall accrue from and including the
first day of each Interest Period selected by the Borrower to (but not
including) the last day of such Interest Period at the Adjusted LIBOR Rate
determined as applicable to such Interest Period upon the amount of the unpaid
principal balances of the Loans identified by the Borrower in the Borrower’s
written election.

 

(i)            Interest Periods.  There shall be no more than eight (8) Interest
Periods outstanding at any one time.  No
Interest Period may expire after the Maturity Date.

 

(ii)           Availability.  If prior to the commencement of any Interest
Period for a LIBOR Borrowing: (A) the Agent is advised that the Required
Lenders have determined that a Regulatory Change or a change in market
conditions has made it impractical for the Lenders to offer pricing based on
the Adjusted LIBOR Rate; or (B) the Agent determines (which determination
shall be conclusive absent manifest error) that adequate and reasonable means
do not exist for ascertaining the LIBOR Rate for such Interest Period; or (C) the
Agent is advised by the Required Lenders that the LIBOR Rate applicable to such
Interest Period will not adequately and fairly reflect the cost to the Lenders
of making or maintaining the proposed LIBOR Borrowing for such Interest Period;
then the Agent shall give notice thereof to the Borrower and the Lenders as
promptly as practicable thereafter and, until the Agent notifies the Borrower
and the Lenders that the circumstances giving rise to such notice no longer
exist, (x) any request to convert any borrowing to, or continue any
borrowing as, a LIBOR Borrowing shall be ineffective and (y) any requested
LIBOR Borrowing shall bear interest at the Base Rate.

 

(iii)          Breakage Costs.  The Borrower agrees to compensate the Lenders
from time to time, upon demand from any Lender through the Agent, for all
losses, expenses, lost earnings, costs and liabilities (including all interest
paid to lenders of funds borrowed by the Lenders to carry LIBOR Borrowings)
which any of the Lenders sustains if: (A) any repayment or prepayment of
any LIBOR Borrowings (including any payment resulting from the acceleration of
the Loans in accordance with the terms of this Agreement) or any conversion of
a LIBOR Borrowing for any reason occurs on a date which is not the last day of
the applicable Interest Period; or (B) any failure by the Borrower to
borrow a LIBOR Borrowing or convert an Adjusted Base Rate Borrowing to a LIBOR
Borrowing on the date for such borrowing or conversion specified in the
relevant notice of election given by the Borrower to the Agent in accordance
with the terms of this Agreement.  For
purposes of calculating amounts payable by the Borrower to the Lenders under
this Section, each Lender shall be deemed to have funded each LIBOR Borrowing
made by it at the LIBOR Rate for such LIBOR Borrowing by a matching deposit or
other borrowing in the offshore interbank market for such currency for a
comparable amount and for a comparable period, whether or not such LIBOR
Borrowing was in fact so funded.

 

(iv)          Termination Of Right To Elect
LIBOR Borrowings.  Notwithstanding
anything to the contrary set forth in this Agreement, and without limiting any
other rights and remedies of the Lenders, the Required Lenders during any
continuing Default or Event of Default may suspend the right of the Borrower to
elect any new LIBOR Borrowing or to convert any Adjusted Base Rate Borrowing
into a LIBOR Borrowing or to permit any LIBOR Borrowing to be renewed as a
LIBOR Borrowing, in which case all LIBOR Borrowings shall be converted (on the
last days of the respective Interest Periods therefor) or continued, as the
case may be, as Adjusted Base Rate Borrowings.

 

32

 

2.04.3.         Calculation Of Interest.  Interest shall be calculated upon Adjusted
Base Rate Borrowings on the basis of a 365 or 366 days per year factor applied
to the actual days on which there exists an unpaid balance of the Adjusted Base
Rate Borrowings.  Interest shall be
calculated upon LIBOR Borrowing on the basis of a 360 day per year factor applied
to the actual days on which there exists an unpaid balance of the LIBOR
Borrowing.

 

2.04.4.         Default Interest.  The interest rates payable upon the Loans may
be increased to the Default Rate during any continuing Event of Default upon
the election of the Required Lenders until the Event of Default has been cured
to the satisfaction of the Required Lenders or waived by the Agent upon the
authorization of the Required Lenders.

 

2.04.5.         Maximum Rate Of Interest.  Any provision contained in the Credit
Documents to the contrary notwithstanding, the Lenders shall not be entitled to
receive or collect, nor shall the Borrower be obligated to pay, interest, fees,
or charges thereunder in excess of the maximum rate of interest permitted by
any applicable Law, and if any provision of this Agreement, the Notes or any of
the other Credit Documents is construed or held by any court of law or
Governmental Authority having jurisdiction to permit or require the charging,
collection or payment of any amount of interest in excess of that permitted by
such Laws, the provisions of this Section shall control and shall override
any contrary or inconsistent provision. 
The intention of the parties is to at all times conform strictly with
all applicable usury requirements and other Laws limiting the maximum rates of interest
which may be lawfully charged upon the Loans. 
The interest to be paid pursuant to the Notes shall be held subject to
reduction to the amount allowed under said usury or other Laws as now or
hereafter construed by the courts having jurisdiction, and any sums of money
paid in excess of the interest rate allowed by applicable law shall be applied
in reduction of the principal amount owing pursuant to the Notes.

 

Section 2.05.          Late Payment Charges. 
Any payment of principal, interest or fees due upon any of the Loans
(including any final payment) which is received by the Agent more than fifteen
(15) calendar days after its due date shall incur a late payment charge equal
to five percent (5%) of the amount of the payment due, which charge shall be
immediately due and payable.  The
existence of the right by the Lenders to receive a late payment charge shall
not be deemed to constitute a grace period or provide any right to the Borrower
to make a payment other than on such payment’s scheduled due date.

 

Section 2.06.          Pro Rata Treatment And Payments.

 

2.06.1.         Distribution Of Payments To Lenders.  Except as otherwise expressly provided to the
contrary by the terms of this Agreement, all payments (including prepayments)
to be made by the Borrower hereunder, whether on account of principal,
interest, fees or otherwise shall be made without set-off or counterclaim and
shall be made prior to 12:00 Noon on the due date thereof to the Agent for the
accounts of the Lenders at the Agent’s offices in Buffalo, New York in
immediately available Dollars.  The Agent
shall promptly distribute to each Lender by wire transfer such Lender’s pro
rata share of each of such payments in like funds as received.  The Agent may assume that the Borrower has
made such payments on the applicable date in accordance herewith and may, in
reliance upon such assumption, distribute to the Lenders or to the Issuing
Lender, as the case may be, the amount due. 
In such event, if the Borrower has not in fact made such payments, then
each of the Lenders or the Issuing Lender, as the case may be, severally agrees
to repay to the Agent forthwith on demand the amount so distributed to such
Lender or the Issuing Lender, in immediately available funds with 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 Agent, at the greater of the
Federal Funds Rate or a rate determined by the Agent in accordance with banking
industry customs and rules on interbank compensation.

 

2.06.2.         Funding Of Loans.  The Lenders agree that the Agent may assume
that each Lender will fund timely its pro rata
portion of each borrowing requested by the Borrower in accordance with the
terms of this Agreement and that the Agent may, in reliance upon such
assumption, 

 

33

 

make
available to the Borrower a corresponding amount.  In such event, if a Lender has not in fact
made its share of the applicable borrowing available to the Agent, then the
applicable Lender and the Borrower severally agree to pay to the Agent
forthwith on demand such corresponding amount in immediately available funds
with interest thereon, for each day from and including the date such amount is
made available to the Borrower to but excluding the date of payment to the
Agent, at (a) in the case of a payment to be made by such Lender, the
greater of the Federal Funds Rate or a rate determined by the Agent in
accordance with banking industry customs and rules on interbank
compensation, plus any administrative, processing or similar fees customarily
charged by the Agent in connection with the foregoing, and (b) in the case
of a payment to be made by the Borrower, the interest rate applicable to
Adjusted Base Rate Borrowings.  If the
Borrower and such Lender shall pay such interest to the Agent for the same or
an overlapping period, the Agent shall promptly remit to the Borrower the
amount of such interest paid by the Borrower for such period.  If such Lender pays its share of the
applicable borrowing to the Agent, then the amount so paid shall constitute
such share included in the subject borrowing. 
Any payment by the Borrower shall be without prejudice to any claim the
Borrower may have against a Lender that shall have failed to make such payment
to the Agent.

 

2.06.3.         Ratable Sharing.  Each borrowing by the Borrower shall be made
ratably from the Lenders in accordance with their applicable respective
Commitment Percentages.  Any reduction in
the Revolving Credit Maximum Borrowing Amount shall be made ratably among the
Lenders in accordance with their respective Revolving Credit Commitment
Percentages. Each payment (including each prepayment) by the Borrower on
account of principal and interest on the Loans shall be shared pro rata by the Lenders in accordance with their respective
balances of the Loans which are being paid.

 

2.06.4.         Setoffs, Counterclaims, Other
Payments.  If any
Lender shall, by exercising any right of setoff or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of the Loans
made by it, or the participations in LC Obligations held by it resulting in
such Lender’s receiving payment greater than its pro rata share
thereof as provided herein, then the Lender receiving such greater proportion
shall (a) notify the Agent of such fact, and (b) purchase (for cash
at face value in Dollars) participations in the Loans and participations in the
LC Obligations of the other Lenders, or make such other adjustments as shall be
equitable, so that the benefit of all such payments shall be shared by the
Lenders ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Loans and other amounts owing them, provided
that:

 

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

 

(ii)           the provisions
of this Section shall not be construed to apply to (A) any payment
made by the Borrower pursuant to and in accordance with the express terms of
this Agreement or (B) any payment obtained by a Lender as consideration
for the assignment of or sale of a participation in any of its Loans or participations
in LC Obligations to any assignee or participant, other than to the Borrower or
any Subsidiary thereof (as to which the provisions of this Section shall
apply).

 

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

 

Section 2.07.        Application Of Payments.  Except as expressly required to the contrary
by the terms of this Agreement, all payments received upon the Loans may be
applied first to Credit Party

 

34

 

Expenses,
next to late payment charges, then to accrued interest and the unpaid principal
balances of the Loans, or in such other order as elected by the Required
Lenders.

 

Section 2.08.                             Increased Costs.

 

2.08.1.         Increased Costs Generally. 
If any Change In Law shall:

 

(a)     impose,
modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for
the account of, or credit extended or participated in by, any Lender (except
any reserve requirement reflected in the Adjusted LIBOR Rate) or the Issuing
Lender;

 

(b)     subject
any Lender or the Issuing Lender to any tax of any kind whatsoever with respect
to this Agreement, any Letter of Credit, any participation in a Letter of Credit
or any LIBOR Borrowing made by it, or change the basis of taxation of payments
to such Lender or the Issuing Lender in respect thereof (except for Indemnified
Taxes or Other Taxes covered by Section 2.09 and the imposition of, or any
change in the rate of, any Excluded Taxes payable by such Lender or the Issuing
Lender); or

 

(c)     impose
on any Lender or the Issuing Lender or the London Interbank Market any other
condition, cost or expense affecting this Agreement or any LIBOR Borrowing made
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 LIBOR Borrowing (or of maintaining its
obligation to make any such Loan), or to increase the cost to such Lender or
the Issuing Lender of participating in, issuing or maintaining any Letter of
Credit (or of maintaining its obligation to participate in or to issue any
Letter of Credit), or to reduce the amount of any sum received or receivable by
such Lender or the Issuing Lender hereunder (whether of principal, interest or
any other amount) then, upon request of such Lender or the Issuing Lender, the
Borrower will pay to such Lender or the Issuing Lender, as the case may be,
such additional amount or amounts as will compensate such Lender or the Issuing
Lender, as the case may be, for such additional costs incurred or reduction
suffered.

 

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

 

2.08.3.         Certificate for Reimbursement.  A certificate of a Lender or the Issuing Lender
setting forth the amount or amounts necessary to compensate such Lender or the
Issuing Lender or its holding company, as the case may be, as specified in this
Section 2.08 and delivered to the Borrower

 

35

 

shall be conclusive absent manifest error.  The Borrower shall pay such Lender or the
Issuing Lender, as the case may be, the amount shown as due on any such
certificate within ten (10) days after receipt thereof.

 

2.08.4.         Delay in Requests. 
Failure or delay on the part of any Lender or the Issuing Lender to
demand compensation pursuant to this Section or Section 2.02.11 shall
not constitute a waiver of such Lender’s or the Issuing Lender’s right to
demand such compensation, provided that the Borrower shall not be
required to compensate a Lender or the Issuing Lender pursuant to this Section for
any increased costs incurred or reductions suffered more than nine (9) months
prior to the date that such Lender or the Issuing Lender, as the case may be, notifies
the Borrower of the Change in Law giving rise to such increased costs or
reductions and of such Lender’s or the Issuing Lender’s intention to claim
compensation therefor (except that, if the Change in Law giving rise to such
increased costs or reductions is retroactive, then the nine (9) month
period referred to above shall be extended to include the period of retroactive
effect thereof).

 

Section 2.09.          Taxes.

 

2.09.1.          Payments Free of Taxes. 
Any and all payments by or on account of any obligation of the Borrower
hereunder or under any other Credit Document shall be made free and clear of
and without reduction or withholding for any Indemnified Taxes or Other Taxes, provided
that if the Borrower shall be required by applicable law to deduct any Indemnified
Taxes (including any Other Taxes) from such payments, then (a) 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 Agent, Lender or Issuing Lender, as the case may be, receives
an amount equal to the sum it would have received had no such deductions been
made, (b) the Borrower shall make such deductions and (c) the
Borrower shall timely pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.

 

2.09.2.         Payment of Other Taxes by the Borrower.  Without limiting the provisions of Section 2.09.1
above, the Borrower shall timely pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.

 

2.09.3.         Indemnification by the Borrower.  The Borrower shall indemnify the Agent, each
Lender and the Issuing Lender, within ten (10) days after demand therefor,
for the full amount of any Indemnified Taxes or Other Taxes (including
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to
amounts payable under this Section) paid by the Agent, such Lender or the
Issuing Lender, as the case may be, and any penalties, interest and reasonable
expenses arising therefrom or with respect thereto, whether or not such
Indemnified Taxes or Other 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 Borrower by a Lender or the Issuing Lender (with a copy to the Agent), or
by the Agent on its own behalf or on behalf of a Lender or the Issuing Lender,
shall be conclusive absent manifest error.

 

2.09.4.         Evidence of Payments. 
As soon as practicable after any payment of Indemnified Taxes or Other
Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver
to the 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
Agent.

 

2.09.5.         Status of Lenders.  Any Foreign Lender that is entitled to an
exemption from or reduction of withholding tax under the law of the
jurisdiction in which the Borrower is resident for tax purposes, or any treaty
to which such jurisdiction is a party, with respect to payments hereunder or
under any other Credit Document shall deliver to the Borrower (with a copy to
the Agent), at the time or

 

36

 

times prescribed by applicable law or
reasonably requested by the Borrower or the Agent, such properly completed and
executed documentation prescribed by applicable law as will permit such
payments to be made without withholding or at a reduced rate of
withholding.  In addition, any Lender, if
requested by the Borrower or the Agent, shall deliver such other documentation
prescribed by applicable law or reasonably requested by the Borrower or the
Agent as will enable the Borrower or the Agent to determine whether or not such
Lender is subject to backup withholding or information reporting requirements.

 

Without
limiting the generality of the foregoing, in the event that the Borrower is
resident for tax purposes in the United States of America, any Foreign Lender
shall deliver to the Borrower and the Agent (in such number of copies as shall
be requested by the recipient) on or prior to the date on which such Foreign
Lender becomes a Lender under this Agreement (and from time to time thereafter
upon the request of the Borrower or the Agent, but only if such Foreign Lender
is legally entitled to do so), whichever of the following is applicable:

 

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

 

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

 

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

 

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

 

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

 

Section 2.10.          Mitigation Obligations; Replacement of Lenders.

 

2.10.1.         Designation of a Different Lending Office.  If any Lender requests compensation under Section 2.08,
or requires the Borrower to pay any additional amount to any Lender or

 

37

 

any Governmental Authority for the account of any Lender pursuant to Section 2.09,
then such Lender shall use reasonable efforts to designate a different lending
office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designation or assignment (i) would
eliminate or reduce amounts payable pursuant to Sections 2.08 and 2.09, as the
case may be, in the future and (ii) would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such
Lender.  The Borrower hereby agrees to
pay all reasonable costs and expenses incurred by any Lender in connection with
any such designation or assignment.

 

2.10.2.         Replacement of Lenders. If any Lender
requests compensation under Sections 2.08 or 2.09, or if the Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Sections 2.08 or 2.09,
or if any Lender defaults in its obligation to fund Loans hereunder, or if in
connection with any proposed amendment, modification, termination, waiver or
consent with respect to any terms of the Credit Documents as contemplated by Section 10.03,
the consent of the Required Lenders has been obtained but the consent of a
Lender whose consent is required shall not have been obtained, then the
Borrower may, at its sole expense and effort, upon notice to such Lender and
the Agent, require any of such Lenders to assign and delegate, without recourse
(in accordance with and subject to the restrictions contained in, and consents
required by, Section 10.08), all of its interests, rights and obligations
under this Agreement and the related Credit Documents to an assignee that shall
assume such obligations (which assignee may be another Lender, if a Lender
accepts such assignment), provided that:

 

(a)           the
Borrower shall have paid to the Agent the assignment fee specified in Section 10.08;

 

(b)           such
Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and participations in LC Disbursements, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder and
under the other Credit Documents from the assignee (to the extent of such
outstanding principal and accrued interest and fees) or the Borrower (in the
case of all other amounts);

 

(c)           in
the case of any such assignment resulting from a claim for compensation under Section 2.08
or payments required to be made pursuant to Section 2.09, such assignment
will result in a reduction in such compensation or payments thereafter; and

 

(d)           such
assignment does not conflict with applicable laws.

 

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

 

Section 2.11.        Fees.  The Borrower shall pay to M&T Bank for
M&T Bank’s own account such fees as are required by the terms of the Fee
Letter.

 

Section 2.12.        Payments.  All payments received by the Credit Parties
which are to be applied to reduce the Obligations shall be provisional and shall
not be considered final unless and until such payment is not subject to
avoidance under any provision of the Bankruptcy Code, as amended, including
Sections 547 and 550, or any state law governing insolvency or creditors’
rights.  If any payment is avoided or set
aside under any provision of the Bankruptcy Code, including Sections 547 and
550, or any state law governing insolvency or creditors’ rights, the payment
shall be considered not to have been

 

38

 

made
for all purposes of this Agreement and the Credit Parties shall adjust their
respective records to reflect the fact that the avoided payment was not made
and has not been credited against the Obligations.

 

Section 2.13.        Advancements.  If the Borrower or any other Loan Party fails
to perform any of its respective agreements or covenants contained in the
Credit Documents or if the Borrower or any other Loan Party fails to protect or
preserve the Collateral or any other security for the Obligations or the status
and priority of the Liens of the Credit Parties in the Collateral or in any
other security for the Obligations and such failure shall remain uncured for
three (3) Business Days after the Agent shall have notified the Borrower
thereof, the Agent for the account of the Lenders may make advances to perform
the same on behalf of the Borrower or other Loan Party to protect or preserve
the Collateral or any other security for the Obligations or the status and
priority of the Liens of the Credit Parties in the Collateral or in any other
security for the Obligations, and all sums so advanced shall immediately upon
such advance become secured by the Liens granted in the Credit Documents and
any other security for the Obligations, and shall become part of the principal
amount owed to the Lenders with interest to be assessed at the Default
Rate.  The Borrower shall repay on demand
all sums so advanced on the Borrower’s behalf, plus all expenses or costs
incurred by the Agent, on account of the Lenders, including reasonable legal
fees, with interest thereon.  The
provisions of this Section shall not be construed to prevent the
institution of the rights and remedies of the Agent upon the occurrence of an
Event of Default.  The authorization
contained in this Section is not intended to impose any duty or obligation
on the Agent or any other Credit Party to perform any action or make any
advancement on behalf of the Borrower and is intended to be for the sole
benefit and protection of the Credit Parties.

 

ARTICLE 3

REPRESENTATIONS
AND WARRANTIES

 

The
Borrower makes the following representations and warranties to the Credit
Parties as of the Closing Date and, as of each date on which any Revolving
Credit Loan is requested or made or any Letter of Credit is requested or issued
(for purposes hereof, each extension or other amendment of a Letter of Credit
shall constitute an issuance thereof), and as of each date on which any Loan or
portion of a Loan is converted to or continued as a LIBOR Borrowing:

 

Section 3.01.          Organization and Qualification. 
Each Loan Party and each Subsidiary of each Loan Party (a) is a
corporation, limited liability company or partnership duly organized, validly
existing and in good standing under the laws of the state (or nation and/or
province or other applicable jurisdiction, in the case of a Foreign Subsidiary)
of incorporation or organization of such Loan Party or Subsidiary, (b) has
the lawful power to own or lease its properties and to engage in the business
it presently conducts or proposes to conduct, and (c) is duly licensed or
qualified and in good standing in all jurisdictions where the property owned or
leased by it or the nature of the business transacted by it makes such
licensing or qualification necessary (except to the extent that the failure to
be licensed, qualified or in good standing is not reasonably likely to cause a
Material Adverse Change).

 

Section 3.02.          Capitalization and Ownership. 
As of the Closing Date, the authorized Capital Stock and the issued and
outstanding Capital Stock of: (a) the respective Guarantors which are
corporations consists of those shares of common stock described as disclosed on
Schedule 3.02, having such par value as may be indicated therein, of which that
number of shares indicated therein as issued and outstanding are in fact issued
and outstanding; and (b) the respective Guarantors that are limited
liability companies are not evidenced by certificates and are one hundred
percent owned by other Loan Parties.  All
of the Capital Stock of the Guarantors indicated as issued and outstanding has
been validly issued and is fully paid and nonassessable.  As of the Closing Date, there are no options,
warrants or other rights outstanding to purchase any Capital Stock of any
Guarantor, except as disclosed on Schedule 3.02.

 

39

 

Section 3.03.          Subsidiaries.  No Loan Party
nor any Subsidiary of a Loan Party has any Subsidiaries as of the Closing Date,
except as disclosed on Schedule 3.03. 
Each Loan Party has good and marketable title to all the Capital Stock
of any Subsidiary which such Loan Party owns, free and clear of any Lien other
than Permitted Encumbrances.  There are
no options, warrants or other rights outstanding to purchase any shares of
Capital Stock of any Subsidiary of any Loan Party or, to the best of the
Borrower’s knowledge, any Restricted Subsidiary, nor are any securities of any
Subsidiary or, to the best of the Borrower’s knowledge, any Restricted
Subsidiary, convertible into or exchangeable for their common stock.  Except for any investments in such assets
permitted under the provisions of this Agreement, (a) no Loan Party or, to
the best of the Borrower’s knowledge, Restricted Subsidiary, owns directly or
indirectly any Capital Stock of any other Person, (b) no Loan Party or, to
the best of the Borrower’s knowledge, Restricted Subsidiary, is a partner
(general or limited) of any partnership, and (c) no Loan Party or, to the
best of the Borrower’s knowledge, Restricted Subsidiary is a party to any joint
venture and or otherwise owns (beneficially or of record) any Equity Interest
or similar interest in any other Person.

 

Section 3.04.          Power and Authority.  Each of the
Loan Parties has the full power to enter into, execute, deliver, carry out and
perform this Agreement and the Credit Documents to which it is a party, to
incur the Indebtedness contemplated by the Credit Documents and to perform its
respective obligations under the Credit Documents to which it is a party and
all of such actions have been duly authorized in each instance by all necessary
corporate proceedings.

 

Section 3.05.          Validity and Binding Effect. 
This Agreement has been, and each Credit Document, when executed and
delivered by the respective Loan Parties, will have been, duly and validly
executed and delivered by the Loan Parties which are signatories thereto.  This Agreement and each of the other Credit
Documents executed and delivered by the respective Loan Parties will, upon such
execution and delivery, constitute the legal, valid and binding obligations of
such Loan Parties, enforceable against the respective Loan Parties in
accordance with their respective terms, subject to applicable bankruptcy,
insolvency, reorganization moratorium or similar laws affecting the rights of
creditors generally and to the effect of general principles of equity whether
applied by a court of law or equity.

 

Section 3.06.          No Conflict.  Neither the
execution and delivery by the Borrower of this Agreement nor the execution and
delivery by any other Loan Party of any Credit Documents to which it is a
party, nor the consummation of the transactions herein or therein contemplated,
nor compliance with the terms and provisions hereof or thereof by the Borrower
or the other Loan Parties will (a) conflict with, constitute a default
under or result in any breach of (i) the terms and conditions of the
Organization Documents of any Loan Party or (ii) any Law or any agreement
or instrument or order, writ, judgment, injunction or decree to which any Loan
Party is a party or by which it is bound or to which it is subject, which
conflict, default or breach would cause a Material Adverse Change, or (b) result
in the creation or enforcement of any Lien upon any property (now or hereafter
acquired) of any of the Loan Parties (other than Liens securing the Obligations
and the Permitted Encumbrances).

 

Section 3.07.          Litigation.  Except as
otherwise set forth in the Borrower’s Form 10-K for the Fiscal Year ending
October 31, 2009, there are no actions, suits, proceedings or investigations
pending or, to the knowledge of the Borrower, threatened against any Loan Party
or any Restricted Subsidiary, at law or in equity, before any Governmental
Authority which individually or in the aggregate, could be reasonably expected
to result in any Material Adverse Change; and no Loan Party or Restricted
Subsidiary is in violation of any order, writ, injunction or decree of any
Governmental Authority, the violation of which could reasonably be expected to
result in any Material Adverse Change.

 

Section 3.08.          Financial Statements; Financial Projections.

 

3.08.1.         Financial Statements. 
The Borrower has previously delivered to the Agent correct and complete
copies of the audited consolidated balance sheets and statements of income,

 

40

 

retained earnings and cash flows of the Borrower and its Subsidiaries
as of and for its Fiscal Year ended October 31, 2009, including the
footnotes thereto.  Such financial
statements fairly present, in all material respects, the financial condition of
the Borrower and its Subsidiaries as at the end of the periods covered thereby
and the results of the Borrower’s and its Subsidiaries’ operations and the
changes in the Borrower’s and its Subsidiaries’ financial positions for the
periods covered thereby, and were prepared in accordance with GAAP applied on a
consistent basis throughout the periods covered thereby subject.

 

3.08.2.         Books and Records. (a)  The books of account and other
financial records of the Borrower and its Subsidiaries as in effect on the
Closing Date are correct and complete in all material respects, represent
actual, bona fide transactions and have been maintained in accordance with
sound business and accounting practices; and (b) as of the Closing Date,
the Borrower and its Subsidiaries maintain an adequate system of internal
accounting controls and do not engage in or maintain any off-the-books accounts
or transactions.

 

3.08.3.         Absence of Material Liability.  As of the Closing Date, except with respect
to the Acquisition, neither the Borrower nor any of its Subsidiaries have any
material liabilities of any kind, whether direct or indirect, fixed or
contingent or otherwise which is not disclosed upon the consolidated financial
statements of the Borrower and its Subsidiaries which have been provided to the
Credit Parties; other than executory obligations under contracts, leases, or
other agreements which GAAP would not require to be set forth in the
consolidated financial statements of the Borrower and its Subsidiaries.

 

3.08.4.         Financial Projections. 
The Borrower has delivered to the Credit Parties financial projections
of the Borrower and its Subsidiaries for the period commencing November 1,
2010 and ending October 31, 2012. 
Such projections set forth in the judgment of the Borrower a reasonable
range of possible results in light of the history of the businesses of the
Borrower and its Subsidiaries, and present reasonably foreseeable conditions
and the intentions of the management of the Borrower and its Subsidiaries.  In the reasonable judgment of the Borrower,
such projections accurately reflect the liabilities of the Borrower and its
Subsidiaries on the Closing Date, after giving effect to the transactions contemplated
by this Agreement.  No events have
occurred since the preparation of the projections which would cause the
projections, taken as a whole, not to be reasonably attainable; provided,
however, that such projections are subject to significant uncertainties and
contingencies, many of which are beyond the Borrower’s control, that no
assurances can be given that any such projections will be realized and that
actual results may differ from any such projections and such differences may be
material.

 

Section 3.09.          Margin Stock.  Neither the
Borrower nor any of its Subsidiaries engages or intends to engage principally,
or as one of its important activities, in the business of incurring
Indebtedness or extending credit to others for the purpose, immediately,
incidentally or ultimately, of purchasing or carrying “margin stock” (within
the meaning of Regulation U issued by the Federal Reserve Board).  No part of the proceeds of any Loan or other
extension of credit hereunder has been or will be used, to purchase or carry
any margin stock or to extend credit to others for the purpose of purchasing or
carrying any margin stock or to refund or retire Indebtedness originally
incurred for such purpose.  As of the
Closing Date neither the Borrower nor any of its Subsidiaries intends to hold
any margin stock.

 

Section 3.10.          Full Disclosure.  Neither this
Agreement nor any Credit Document, nor any certificate, statement, agreement or
other document furnished to the Credit Parties in writing by the Loan Parties,
contains any misstatement of a material fact or, taken as a whole, omits to
state a material fact necessary in order to make the statements contained
herein and therein, in light of the circumstances under which they were made,
not misleading.  As of the Closing Date,
there is no fact known to the Borrower which materially adversely affects the
business, property, assets, financial condition, results of operations or
prospects of the Borrower and its Subsidiaries, taken as a whole, which has not
been set

 

41

 

forth in this Agreement or the Credit Documents or in
the certificates, statements, agreements or other documents furnished in
writing to the Credit Parties before or at the date hereof in connection with
the transactions contemplated hereby and thereby.

 

Section 3.11.          Tax Returns and Payments. 
All federal and state tax returns that are required by applicable Law to
be filed by the Borrower and its Subsidiaries, which are material to the
conduct of their business, have been filed or properly extended.  All taxes, assessments and other governmental
charges levied upon the Borrower and its Subsidiaries, or any of their
respective properties, assets, income or franchises which are due and payable
have been paid in full other than (a) those presently payable without
penalty or interest, (b) those which are being contested in good faith by
appropriate proceedings, and (c) those which, if not paid, would not, in
the aggregate, constitute a Material Adverse Change; and as to each of items
(a), (b) and (c) the Borrower and its Subsidiaries have established
reserves for such claims as have been determined to be adequate by application
of GAAP consistently applied.  There are
no agreements or waivers extending the statutory period of limitations
applicable to any consolidated federal income tax return of the Borrower and
its Subsidiaries for any period.

 

Section 3.12.          Consents and Approvals. 
No consent, approval, exemption, order or authorization of, or a
registration or filing with any Governmental Authority or any other Person is
required by any Law or any agreement (other than the Credit Documents) in
connection with the execution, delivery and carrying out of this Agreement and
the Credit Documents to which any Loan Party is a party.

 

Section 3.13.          No Event of Default; Compliance with Instruments. 
No event has occurred and is continuing and no condition exists or will
exist after giving effect to the Loans which constitutes an Event of Default or
a Default. No Loan Party or Subsidiary of a Loan Party is in material violation
of any term of its Organization Documents.

 

Section 3.14.          Compliance with Laws.  Each of the
Loan Parties and their respective Subsidiaries are in compliance in all
material respects with all applicable Laws in all jurisdictions in which any of
the Loan Parties or their Subsidiaries are presently doing business, the
non-compliance with which could reasonably be likely to be, or result in, a
Material Adverse Change.

 

Section 3.15.          ERISA Compliance.

 

3.15.1.         Plans and Contributions.  Each
Plan is in compliance in all material respects with the applicable provisions
of ERISA, the Code and other federal or state Laws.  Each Plan that is intended to qualify under Section 401(a) of
the Code has received a favorable determination letter from the Internal
Revenue Service (“IRS”) or an application for such
a letter is currently being processed by the IRS with respect thereto and, to
the best knowledge of the Borrower, nothing has occurred which would prevent,
or cause the loss of, such qualification. 
The Loan Parties and each ERISA Affiliate have made all required
contributions to each Plan subject to Section 412 of the Code, and no
application for a funding waiver or an extension of any amortization period
pursuant to Section 412 of the Code has been made with respect to any
Plan.

 

3.15.2.         Pending Claims.  There
are no pending or, to the best knowledge of the Borrower, threatened claims,
actions or lawsuits, or action by any Governmental Authority, with respect to
any Plan that could reasonably be expected to result in a Material Adverse
Change.  There has been no Prohibited
Transaction or violation of the fiduciary responsibility rules with
respect to any Plan that has resulted or could reasonably be expected to result
in a Material Adverse Change.

 

3.15.3.         ERISA Events.  (a) No
ERISA Event has occurred or is reasonably expected to occur, (b) no
Pension Plan has any Unfunded Pension Liability, (c) no Loan Party and no
ERISA Affiliate has incurred, or reasonably expects to incur, any liability
under Title IV of ERISA with

 

42

 

respect to any Pension Plan (other than premiums due and not delinquent
under Section 4007 of ERISA), (d) neither the Borrower nor any ERISA
Affiliate has incurred, or reasonably expects to incur, any liability (and no
event has occurred which, with the giving of notice under Section 4219 of
ERISA, would result in such liability) under Section 4201 or 4243 of ERISA
with respect to a Multiemployer Plan, and (e) neither the Borrower nor any
ERISA Affiliate has engaged in a transaction that could be reasonably subject
to Section 4069 or 4212(c) of ERISA.

 

Section 3.16.          Title to Properties.  The Loan
Parties and their Subsidiaries have good title to, or a valid leasehold
interest in, all their respective real and personal property material to the
conduct of their businesses, taken as a whole.

 

Section 3.17.          Insurance.  There are in
full force and effect for the benefit of the Loan Parties and their
Subsidiaries insurance policies and bonds providing adequate coverage from
reputable and financially sound insurers in amounts sufficient to insure the
assets and risks of the Loan Parties and their Subsidiaries in accordance with
prudent business practices in the respective industries of the Loan Parties and
their Subsidiaries.  As of the Closing
Date, and, as of each subsequent reaffirmation of this representation and
warranty, except as otherwise previously disclosed in writing to the Agent, no
notice has been given or claim made and to the knowledge of the Loan Parties,
no grounds exist, to cancel or void any of such policies or bonds or to reduce
the coverage provided thereby.

 

Section 3.18.          Employment Matters.  Each Loan
Party and each Subsidiary of a Loan Party is in material compliance with all
employee benefit plans, employment agreements, collective bargaining agreements
and labor contracts and all applicable Laws thereto.  There are no outstanding grievances,
arbitration awards or appeals relating to any of the foregoing plans,
agreements or contracts, or, to the knowledge of the Borrower, threatened
strikes, picketing, handbilling or other work stoppages or slowdowns at
facilities of any Loan Party or any Subsidiary of a Loan Party which could
reasonably be expected to result in any Material Adverse Change.  All payments due or to become due from any
Loan Party or the Subsidiary of the Loan Party on account of obligations in
respect of employee health and welfare insurance which could reasonably be
expected to have a Material Adverse Change if not paid have been paid or, in
the case of such amounts not yet due, have been recorded as liabilities on the
books of the Borrower and its Subsidiaries.

 

Section 3.19.          Solvency.  As of the
Closing Date, and as of the date of each advance of the proceeds of any Loan
and each issuance or renewal of any Letter of Credit, as the case may be, and
after giving effect to such advances or issuances or renewals, each of the Loan
Parties and each Subsidiary of a Loan Party, taken as a whole is, and will
remain, Solvent.

 

Section 3.20.          Material Contracts; Burdensome Restrictions. 
Except as otherwise disclosed on Schedule 3.20, as of the Closing Date,
all contracts required to be filed by the Borrower with the Securities and
Exchange Commission pursuant to Item 1.01 of Form 8K relating to the
business operations of the Loan Parties and their Subsidiaries, are valid,
binding and enforceable upon the Loan Parties and their Subsidiaries, and to
the knowledge of the Borrower, the other parties thereto, without any material
defaults thereunder.

 

Section 3.21.          Patents, Trademarks, Copyrights, Licenses, Etc. 
Each Loan Party owns or possesses all the patents, trademarks, service
marks, trade names, copyrights, licenses, registrations, franchises, permits
and rights which are materially necessary to own and operate its assets and to
carry on its business as presently conducted and the Borrower has no knowledge
that any such intellectual property materially infringes upon the valid and
enforceable rights of any other Persons.

 

Section 3.22.          Liens.  The Liens in
the Collateral granted to the Credit Parties pursuant to the Credit Documents
constitute and will continue to constitute valid and enforceable Liens under
all applicable Laws, having the priority required herein and in the other
Credit Documents, and are entitled to

 

43

 

all the rights, benefits and priorities provided by
applicable Law.  All filing fees and
other expenses in connection with each such action have been or will be paid by
the Borrower.

 

Section 3.23.          Environmental Compliance. 
The Borrower’s and the other Loan Parties’ businesses, operations and
Properties, are in compliance with applicable Environmental Laws, and neither
the Borrower nor any Loan Party has any Environmental Liabilities, taken as a
whole, which could, individually or in the aggregate, reasonably be expected to
result in a Material Adverse Change.

 

Section 3.24.          Anti-Terrorism Laws.  The making and funding of the Loans, the
Borrower’s use of the proceeds thereof, the issuance of the Letters of Credit
hereunder and the use thereof will not violate the Act or any of the foreign
assets control regulations of the United States Treasury Department (31 CFR,
Subtitle B, Chapter V, as amended) or any enabling legislation or executive
order relating thereto, and shall not be in violation of any federal statute or
Presidential Executive Order, including Executive Order 13224 66 Fed. Reg.
49079 (September 25, 2001) (Blocking Property and Prohibiting Transactions
With Persons Who Commit, Threaten To Commit, or Support Terrorism).

 

Section 3.25.          Acquisition. 
The Borrower has delivered to the Agent full and complete copies of the
Purchase Agreement and the Borrower has completed the Acquisition in accordance
with the Purchase Agreement.  The
Borrower contributed not less than One Hundred Million Dollars
($100,000,000.00) in cash to finance the Acquisition.

 

Section 3.26.          Funding Date. 
On the Funding Date: (a) the Senior Leverage Ratio of the Loan
Parties did not exceed 1.5 to 1.0; and (b) the Borrower’s Debt
Capitalization Ratio did not exceed 0.5 to 1.0.

 

ARTICLE 4

CONDITIONS
PRECEDENT

 

Section 4.01.          Conditions to Closing. 
Prior to the Agent’s and Lender’s execution of this Agreement each of
the following conditions shall be satisfied:

 

4.01.1.         Closing Submissions.  The
Agent’s receipt of the following, each properly executed by an Authorized
Officer of the signing Loan Party, each dated either the Closing Date (or, in
the case of certificates of governmental officials, a recent date before the
Closing Date) and each in form and substance reasonably satisfactory to the
Agent and its counsel, (a) executed counterparts of this Agreement and the
other Credit Documents, (b) Notes executed by the Borrower in favor of
each Lender requesting a Note for each Loan extended by such Lender, (c) such
certificates of resolutions or other action, incumbency certificates and/or
other certificates of Authorized Officers of each Loan Party as the Agent may
require evidencing the identity, authority and capacity of each Authorized
Officer thereof authorized to act as a Authorized Officer in connection with
this Agreement and the other Credit Documents to which such Loan Party is a
party, (d) such documents and certifications as the Agent may reasonably
require to evidence that each Loan Party is duly organized or formed, and that
each Loan Party is validly existing, in good standing and qualified to engage
in business in each jurisdiction where its ownership, lease or operation of
properties or the conduct of its business requires such qualification, and (e) a
favorable opinion of counsel to the Loan Parties, addressed to the Agent and
the Lenders as to the matters addressed in Exhibit F attached hereto.

 

4.01.2.         Fees.  Any fees
required to be paid on or before the Closing Date shall have been paid.

 

4.01.3.     Officer Certificate; Other Submissions. 
The receipt by the Agent of: (a) a certificate signed by an
Authorized Officer of the Borrower certifying the absence of any continuing

 

44

 

Defaults or Events of
Default; and (b) such other assurances, certificates, documents, consents
or opinions as the Agent, the Issuing Lender, or the Required Lenders
reasonably may require.

 

4.01.4.         Landlord Warehouseman Agreements. 
The Borrower shall have delivered to the Agent landlord agreements and
warehouse agreements, in forms reasonably acceptable to the Agent, for each
location any Collateral is located which is not owned by a Loan Party
unless:  (i) the Collateral is held
by a processor or bailee for which the Borrower has complied with the last
sentence of Section 5.06 of this Agreement; (ii) the Borrower
delivers to the Agent a certification that the Borrower, after using
commercially reasonable efforts, has been unable to obtain such agreement, or (iii) the
location is a warehouse for which the value of the Collateral held in such
warehouse is less than One Million Dollars ($1,000,000.00).

 

Section 4.02.         Conditions To Advances Of
Proceeds Of Loans And Issuances Of Letters Of Credit After Closing Date.   The obligations of each Lender and of the
Issuing Lender to honor any request for the advance of any proceeds of the
Loans or the issuance or reissuance of any Letters of Credit after the Closing
Date or request to renew or amend any Letter of Credit after the Closing Date,
shall be subject to the satisfaction of the following conditions precedent:

 

4.02.1.         Representations And Warranties.  The representations and warranties of the Loan Parties
contained in Article 3 of this Agreement or in any other Credit Document,
or which are contained in any document furnished at any time under or in
connection herewith or therewith, shall be true and correct in all material
respects on and as of the date of any such advance of proceeds of the Loans or
issuance of Letters of Credit, except to the extent that such representations
and warranties specifically refer to an earlier date, in which case they shall
be true and correct in all material respects as of such earlier date.

 

4.02.2.         Absence Of Defaults And Events Of
Default.  No continuing Default or Event of Default shall exist,
or would result from such requested advance or issuance.

 

4.02.3.         No Material Adverse Changes.   No Material
Adverse Changes shall have occurred since the Closing Date.

 

ARTICLE 5

AFFIRMATIVE COVENANTS

 

The Borrower agrees that until the payment and satisfaction in full of
all of the Obligations (other than contingent indemnity Obligations that
survive termination of the Credit Documents), it will comply with and cause the
other Loan Parties to comply with the covenants set forth in this Article 5.

 

Section 5.01.         Payment and Performance.  
All Obligations shall be paid and performed in full when and as due.

 

Section 5.02.         Insurance. 
The Borrower and each Loan Party shall obtain and maintain and shall
cause its Subsidiaries to obtain and maintain such insurance coverages as are
reasonable, customary and prudent for businesses engaged in activities similar
to the business activities in which it is engaged.  Without limitation to the foregoing, (a) the
Borrower and the other Loan Parties shall each maintain fire and extended
coverage casualty insurance covering the Collateral and their respective assets
in amounts reasonably satisfactory to the Agent consistent with prudent
practices and sufficient to prevent any co-insurance liability (which amount
shall be the full insurable value of the assets and properties insured unless
the Agent in writing agrees to a lesser amount), naming the Agent for the
benefit of the Credit Parties as sole loss payee and/or additional insured with
respect to the Collateral, with insurance companies and upon policy forms which
are acceptable to and approved by the Agent; and (b) the Loan

 

45

 

Parties shall maintain commercial
umbrella insurance policy with not less than Thirty Million Dollars
($30,000,000.00) of coverage and product/human clinical trial coverage of not
less than Thirty Million Dollars ($30,000,000.00).  The Loan Parties shall submit to the Agent
copies of the insurance policies and paid receipts evidencing payment of the
premiums due on the same.  The casualty
insurance policies shall be endorsed so as to make them noncancellable unless
thirty (30) days prior notice of cancellation is provided to the Agent.

 

Section 5.03.         Collection Of Accounts; Sale Of
Inventory.  The Loan Parties shall collect their
respective Accounts and sell their respective inventory only in the ordinary
course of their respective businesses, subject to customary credit and collection
policies.

 

Section 5.04.         Notice Of Litigation And
Proceedings.  The Borrower and each other Loan Party shall
give prompt notice to the Agent of any action, suit, citation, violation,
direction, notice or proceeding before any court or governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign,
affecting such Loan Party, or the assets or properties thereof, which, if
determined adversely to such Loan Party (a) could require it to pay over
more than the Threshold Amount or deliver assets the value of which exceeds
that sum, or (b) could reasonably be expected to cause a Material Adverse
Change.

 

Section 5.05.         Payment Of Liabilities To Third
Persons.  The Borrower and each other Loan Party shall
pay when and as due, or within applicable grace periods, all liabilities due to
third persons, which individually or in the aggregate have an unpaid amount
exceeding the Threshold Amount, except when the amount thereof is being
contested in good faith by appropriate proceedings and with adequate reserves
therefor being set aside by it.

 

Section 5.06.         Notice Of Change Of Business
Location Or Of Jurisdiction of Organization; Notice of Name Change. 
Each of the Borrower and the other Loan Parties shall notify the Agent
thirty (30) days in advance (or such shorter period as may be agreed to by the
Agent) of,  (a) any change in the
location of its chief executive office, and (b) any change to its name or
jurisdiction of organization.  Prior to
moving any Collateral (or other property securing the Obligations) to any
location not owned by a Loan Party (other than deliveries to Account Debtors of
sold or leased goods, deliveries to bailees, agents and processors and the
delivery of Collateral having a value of less than One Million Dollars
($1,000,000.00) to a warehouse), each Loan Party shall use its commercially
reasonable efforts to obtain and deliver to the Agent an agreement, in form and
substance acceptable to the Agent, pursuant to which the owner of such location
shall:  (i) subordinate any rights
which it may have, or thereafter may obtain, in any of the Collateral or other
property to the rights and security interests of the Credit Parties; and (ii) allow
the Agent access to the Collateral or other property in order to remove the
Collateral or other property from such location.  In addition, if any Collateral having a value
in excess of One Million Dollars ($1,000,000.00) is at any time in the
possession or control of a bailee or any agent or processor the Borrower shall (a) notify
the Agent of such possession, (b) notify such Person of the Agent’s
security interest for the benefit of the Lenders in such Collateral, (c) instruct
such Person to hold all such Collateral for the Agent’s account subject to the
Agent’s instructions and (d) use its commercially reasonable efforts to
obtain an acknowledgment from such Person that it is holding such Collateral
for the benefit of the Agent.

 

Section 5.07.         Payment of Taxes. 
Each of the Borrower and the other Loan Parties shall pay or cause to be
paid when and as due all Taxes imposed upon it or on any of its property or
which it is required to withhold and pay over to the taxing authority or which
it must pay on its income, except where contested in good faith, by appropriate
proceedings and at its own cost and expense; provided, however, that no Loan
Party shall be deemed to be contesting in good faith by appropriate proceedings
unless,  (a)  such proceedings
operate to prevent the taxing authority from attempting to collect the Taxes, (b) the
Collateral is not subject to sale, forfeiture or loss during such proceedings, (c) the
applicable Loan Party’s contest does not subject the Credit Parties to any
liabilities owed to or claims from the taxing

 

46

 

authority or any other
person, (d) the applicable Loan Party establishes appropriate reserves for
the payment of all Taxes, court costs and other expenses for which such Loan
Party would be liable if unsuccessful in the contest, (e) the applicable Loan
Party prosecutes the contest continuously to its final conclusion, and (f) at
the conclusion of the proceedings, the applicable Loan Party promptly pays all
amounts determined to be payable, including but not limited to all Taxes, legal
fees and court costs.

 

Section 5.08.         Reporting Requirements. 
The Borrower shall submit the following items to Agent:

 

5.08.1.         Inventory Reports.  As
periodically requested by the Agent, reports of the inventory of the Borrower
on such reporting forms as are required by the Agent from time to time,
certified to be accurate and correct by an Authorized Officer of the Borrower.

 

5.08.2.         Receivables And Accounts Payable Reports. 
As periodically requested by the Agent: 
(a) a report and aging of the Accounts of the Borrower; and (b) an
accounts payable report and aging for the Borrower.  Such reports shall be accompanied by such
reports, copies of sales journals, remittance reports, and other documentation
as the Agent may reasonably request from time to time.

 

5.08.3.         Quarterly Financial Statements.  As soon as available and in
any event within fifty (50) calendar days after the end of each Fiscal Quarter,
the Borrower shall submit to the Credit Parties a consolidated balance sheet of
the Borrower and its
Subsidiaries as of the end of such
quarter and a consolidated statement of income and retained earnings of the Borrower
and its Subsidiaries for such quarter,
and a consolidated statement of cash flow of the Borrower and its
Subsidiaries for such quarter, all in
reasonable detail and stating in comparative form the respective consolidated
figures for the corresponding date and period in the previous Fiscal Year and
all prepared in accordance with GAAP and certified by an Authorized Officer of
the Borrower (subject to year-end adjustments and the lack of footnotes).

 

5.08.4.         Annual Financial Statements. 
As soon as available and in any event within ninety (90) calendar days
after the end of each Fiscal Year, the Borrower shall submit to the Agent, a
consolidated balance sheet of the Borrower
and its Subsidiaries as of the end of such Fiscal Year and a consolidated
statement of income and retained earnings of the Borrower and its Subsidiaries
for such Fiscal Year, and a consolidated statement of cash flow of the Borrower
and its Subsidiaries for such Fiscal Year, all in reasonable detail and stating
in comparative form the respective consolidated figures for the corresponding
date and period in the prior Fiscal Year and all prepared in accordance with
GAAP and accompanied by an audited opinion thereon issued by independent
certified public accountants selected by the Borrower and reasonably acceptable
to the Required Lenders.

 

5.08.5.         Management Letters.  Promptly upon
receipt thereof, the Borrower shall submit to the Agent copies of any reports
submitted to the Borrower or to its Subsidiaries by independent certified
public accountants in connection with the examination of the financial
statements of the Borrower and its Subsidiaries made by such accountants.

 

5.08.6.         Compliance Certificate. 
The Borrower shall submit a Compliance Certificate to the Agent, within
fifty (50) calendar days after the end of each Fiscal Quarter.

 

5.08.7.         Reports To Other Creditors. 
Promptly after the furnishing thereof, the Borrower shall submit to the Agent
copies of any statement or report furnished to any other Person pursuant to the
terms of any indenture, loan, or credit or similar agreement and not otherwise
required to be furnished to the Agent pursuant to any other provisions of this
Agreement.

 

47

 

5.08.8.         Management Changes.  The Borrower
shall notify the Agent promptly of any changes in the personnel holding the
positions of Chief Executive Officer, Chief Financial Officer or Chief
Operating Officer of the Borrower.

 

5.08.9.         Notice of Defaults and Events of Default. 
The Borrower shall promptly give written notice to the Agent of the
occurrence of any Default or Event of Default, setting forth in such notice the
details thereof, and the action which the Borrower is taking or proposes to
take with respect thereto.

 

5.08.10.       SEC Filings.  Within five (5) days
after the sending, filing, or receipt thereof, and to the extent not readily
available to the public through the internet, copies of:  (a) all financial statements, reports,
notices and proxy statements that the Borrower sends to its shareholders; and (b) all
regular, periodic and special reports, registration statements and prospectuses
that the Borrower renders to or files with the Securities And Exchange
Commission or any national securities exchange, including without limitation
each of the Forms 10-K and 10-Q filed by the Borrower with the Securities And
Exchange Commission.

 

5.08.11.       General Information. In addition to the items set forth in subparagraphs
5.08.1 through 5.08.10 above, the Borrower agrees to submit, and cause the
other Loan Parties to submit, to the Agent such other information respecting
the condition or operations, financial or otherwise, of the Loan Parties as the
Agent may reasonably request from time to time.

 

Section 5.09.         Preservation of Existence, Etc. 
The Borrower and the other Loan Parties shall each (a) preserve,
renew and maintain in full force and effect its legal existence and good
standing under the Laws of the jurisdiction of its organization, (b) take
all reasonable action to maintain all rights, privileges, permits, licenses and
franchises necessary or desirable in the normal conduct of its business, except
to the extent that failure to do so could not reasonably be expected to cause a
Material Adverse Change, and (c) preserve or renew all of its registered
patents, trademarks, trade names and service marks, the non-preservation of
which could reasonably be expected to cause a Material Adverse Change.

 

Section 5.10.         Maintenance of Assets and
Properties.   Each of the Borrower and the other Loan
Parties shall maintain, preserve and protect all of its material assets and
properties necessary in the operation of its business in good working order and
condition, ordinary wear and tear excepted and except as otherwise permitted to
be disposed of in accordance with the terms of this Agreement.

 

Section 5.11.         Compliance with Laws. 
Each of the Borrower and the other Loan Parties shall comply in all
material respects with the requirements of all Laws and all orders, writs,
injunctions and decrees applicable to it or to its business or property, except
in such instances in which such requirement of Law or order, writ, injunction
or decree is being contested in good faith by appropriate proceedings
diligently conducted and except where the noncompliance with which would not or
could not reasonably be expected to cause a Material Adverse Change.

 

Section 5.12.         Inspection Rights. Each of the Borrower and the other Loan
Parties shall permit representatives and independent contractors of the Agent
to visit and inspect any of its properties, to examine its corporate, financial
and operating records, and make copies thereof or abstracts therefrom, and to
discuss its affairs, finances and accounts with its officers and independent
public accountants, all at such reasonable times during normal business hours
and as often as may be reasonably desired, upon reasonable advance notice to
the Loan Parties; provided, however, that when a continuing Default or Event of
Default exists any Credit Party (or any of their respective representatives or
independent contractors) may do any of the foregoing at the expense of the Loan
Parties at any time during normal business hours and without advance notice.

 

48

 

Section 5.13.         Environmental Matters and
Indemnification. Each
of the Borrower and the other Loan Parties shall comply, and shall cause its
Subsidiaries to comply with all applicable Environmental Laws, the
non-compliance with which could reasonably be expected to cause a Material
Adverse Change.  The Loan Parties shall
investigate any circumstances which give the Loan Parties reason to believe or
suspect the Contamination of any of the Properties, which Contamination could
reasonably be expected to cause a Material Adverse Change.  The Loan Parties shall promptly perform any
remediation of such Contamination required under applicable Environmental Laws.

 

Section 5.14.         Additional Guarantors. 
The Borrower shall notify the Agent at the time that any Person becomes
a Subsidiary of the Borrower, and promptly thereafter (and in any event within
thirty (30) days) if such Subsidiary is a Domestic Subsidiary, cause such
Person to (a) become a Guarantor by executing and delivering to the Agent
a counterpart of the Guaranty Agreement or such other document as the Agent
shall deem appropriate for such purpose, (b) become an Obligor under the
Security Agreement by executing and delivering to the Agent a counterpart of
the Security Agreement or such other document as the Agent shall deem
appropriate for such purpose, and (c) deliver to the Agent documents of
the types referred to in clauses (c) and (d) of Section 4.01.1
and favorable opinions of counsel to such Person (which shall cover, among
other things, the legality, validity, binding effect and enforceability of the
documentation referred to in clause (a)), all in form, content and scope
reasonably satisfactory to the Agent. 
The Borrower shall also exercise and deliver, or cause to be delivered,
to the Agent such documents as the Agent may require in order to have the
equity interest in such Person pledged to the Agent, for the benefit of the
Loan Parties, as security for the Obligations, provided that if such Person is
a Foreign Subsidiary only sixty-five percent (65%) (or if less, the full amount
owned by the Borrower or any of its Subsidiaries) of the voting equity interest
and one hundred percent (100%) (or if less, the full amount owned by the
Borrower or any of its Subsidiaries) of the non-voting equity interest shall be
pledged to the Agent for the benefit of the Lenders as security for the
Obligations.

 

ARTICLE 6

NEGATIVE COVENANTS

 

The Borrower agrees that until the payment and performance in full of
all of the Obligations (other than contingent indemnity Obligations that
survive termination of the Credit Documents), it will not do, and it will not
permit any of the other Loan Parties to do, any of the following:

 

Section 6.01.         Liens. 
Neither the Borrower nor any other Loan Party shall create, incur,
assume or suffer to exist any Lien upon any of its properties (real or
personal), assets or revenues, whether now owned or hereafter acquired, other
than Liens securing the Obligations and Permitted Encumbrances.

 

Section 6.02.         Investments And Loans.  Neither the Borrower nor any
other Loan Party shall make any Investments or extend any loans or credit
facilities to any Persons, except (a) Investments in Cash Equivalents, (b) advances
to its employees in the ordinary course of business for travel, entertainment,
relocation and general ordinary course of business purposes and loans to
employees to purchase Capital Stock of Parent, (c) 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, (d) acquisitions of fixed
assets, equipment and Inventory in the ordinary course of business to the
extent not otherwise prohibited by the terms of this Agreement, (e) Investments
and credit accommodations provided by any Loan Party to another Loan Party, (f) Permitted
Acquisitions, (g) loans and advances provided by any Loan Party to any of
its Subsidiaries which are subordinated to the repayment of the Obligations and
which have been assigned as collateral security to the Agent for the ratable
benefit of the Lenders, and (h) Investments or extensions of loans or
credit facilities permitted pursuant to Section 6.03, (i) Investments
or loans or credit facilities to one or more Foreign Subsidiary in an aggregate
amount not exceeding One Million Dollars ($1,000,000.00) in any Fiscal Year,
and (j) Investments not otherwise permitted hereunder in an aggregate
amount not exceeding Two Million Dollars ($2,000,000.00) in any Fiscal Year;

 

49

 

provided, however, if the unpaid balance of the Term Loans and the
Revolving Credit Loans are zero, the Borrower may make Short Term Investments
provided (i) such Investments are made with cash and Cash Equivalents; (ii) the
Borrower maintains cash and Cash Equivalents of not less than Forty Million
Dollars ($40,000,000.00) following the making of such Short-Term Investments;
and (iii) no Revolving Credit Loans shall be made pursuant to this
Agreement while any Investments not otherwise permitted hereunder are owned by
the Borrower or any other Loan Party.

 

Section 6.03.         Indebtedness.  No Loan Party shall create,
incur, assume or suffer to exist any Indebtedness, except (a) the
Obligations, (b) Indebtedness outstanding on the Closing Date and listed
on Schedule 6.03 attached hereto and any refinancings, refundings, renewals or
extensions thereof; provided that the amount of any such Indebtedness is not
increased at the time of such refinancing, refunding, renewal or extension
except by an amount equal to a reasonable premium or other reasonable amount
paid, and fees and expenses reasonably incurred, in connection with such
refinancing and by an amount equal to any existing commitments unutilized
thereunder, (c) obligations (contingent or otherwise) of any Loan Party
existing or arising under any Interest Rate Hedge Agreements, provided
that (i) such obligations are (or were) entered into either in connection
with the Obligations or in the ordinary course of business for the purpose of
directly mitigating risks associated with liabilities, commitments,
investments, assets, or property held or reasonably anticipated by such Loan
Party, or changes in the value of securities issued by such Loan Party, and not
for purposes of speculation or taking a “market view,” and (ii) such
Interest Rate Hedge Agreement does not contain any provision exonerating the
non-defaulting party from its obligation to make payments on outstanding
transactions to the defaulting party, (d) foreign exchange hedging
transactions entered into in the ordinary course of business to manage the
foreign currency risks of the Loan Parties and their Subsidiaries, (e) Indebtedness
in respect of capital leases and purchase money obligations for capital assets;
provided that the aggregate amount of all of such Indebtedness at anytime
outstanding shall not exceed the Threshold Amount, (f) Indebtedness owed
to other Loan Parties, (g) unsecured Indebtedness in an aggregate amount
not to exceed the Threshold Amount at any time outstanding, and (h) Indebtedness
permitted pursuant to Section 6.02(g).

 

Section 6.04.         Fundamental Changes.  No Loan Party or Subsidiary
of a Loan Party shall merge, dissolve, liquidate, consolidate with or into
another Person (whether in one transaction or in a series of transactions),
except that, so long as no continuing Default or Event of Default exists and no
Material Adverse Change has occurred and no Default, Event of Default or
Material Adverse Change would be likely to result therefrom after giving effect
thereto (a) any Subsidiary of the Borrower may merge with the Borrower
provided that the Borrower is the continuing or surviving Person of such
merger, (b) any Subsidiary of the Borrower may merge with or liquidate
into any other Subsidiary of the Borrower, provided that the continuing
surviving Person from such merger shall be a Guarantor, (c) any Restricted
Subsidiary of the Borrower may merge with or liquidate into any other
Restricted Subsidiary of the Borrower, or (d) a Subsidiary of the Borrower
may merge into an Acquisition Target.

 

Section 6.05.         Dispositions.  No Loan Party or Subsidiary
of a Loan Party shall make any Disposition or enter into any agreement to make
any Disposition without the consent of the Required Lenders, except (a) Dispositions
of equipment to the extent that (i) such property is exchanged for credit
against the purchase price of similar replacement property or (ii) the
proceeds of such Disposition are applied to the purchase price of similar
replacement property, (b) the sale of residual ownership rights in
vehicles and equipment upon the termination of operating leases, (c) Dispositions
the Net Available Proceeds of which are applied pursuant to Section 2.03.03,
and (d) Dispositions not otherwise permitted hereunder in an aggregate
amount not exceeding Ten Million Dollars ($10,000,000.00) which are intended to
be used to purchase Qualified Assets pursuant to Section 2.03.3.(a) of
this Agreement, provided that the Borrower complies with the terms of Section 2.03.3.(a) of
this Agreement.

 

Section 6.06.         Restricted Payments.  No Loan Party may declare or make, directly
or indirectly, any Restricted Payments, or incur any obligation (contingent or
otherwise) to do so, except that each Subsidiary of the Borrower may make
Restricted Payments to the Borrower.

 

50

 

Section 6.07.         Change in Nature Of Business.  No Loan Party and no
Subsidiary of a Loan Party shall engage in any material line of business
substantially different from (a) those lines of business conducted by it
on the Closing Date, or (b) any business substantially related or
incidental to the lines of business conducted by it on the Closing Date.

 

Section 6.08.         Transactions With Affiliates.  No Loan Party and no
Subsidiary of any Loan Party shall enter into any transaction of any kind with
any Affiliate (other than with its wholly-owned Subsidiaries), whether or not
in the ordinary course of business, other than on fair and reasonable terms
substantially as favorable as would be obtainable at the time in a comparable
arm’s length transaction with a Person other than an Affiliate.

 

Section 6.09.         Burdensome Agreements; Negative
Pledges.  No Loan Party shall enter
into or grant any negative pledges or agreements restricting its ability to
pledge its assets or to grant Liens against its assets, except as otherwise
expressly provided for in the Credit Documents and except to the extent that
any capital lease or purchase money facility of any of the Loan Parties prohibits
the granting of Liens against the equipment that is being leased or financed,
as applicable, pursuant to such capital lease or purchase money facility.  No Subsidiary of the Borrower shall enter
into any contractual obligation that limits the ability of such Subsidiary (a) to
make Restricted Payments to the Borrower or to otherwise transfer property to
the Borrower, or (b) with respect to any Domestic Subsidiary, to guarantee
the Obligations.

 

Section 6.10.         Use Of Proceeds.  The Loan Parties shall not
use the proceeds of any Loan, whether directly or indirectly, and whether
immediately, incidentally or ultimately, to purchase or carry “margin stock”
(within the meaning of the Margin Regulations) or to extend credit to others
for the purpose of purchasing or carrying margin stock or to refund
Indebtedness originally incurred for such purpose.

 

Section 6.11.         Consolidated Leverage Ratio.   The Borrower shall not permit the Consolidated
Leverage Ratio to exceed 2.50 to 1.0.

 

Section 6.12.         Consolidated Fixed Charge
Coverage Ratio.  The Borrower
shall not permit the Consolidated Fixed Charge Coverage Ratio to be less than
1.40 to 1.0.

 

Section 6.13.         Minimum Consolidated EBITDA.  The Borrower shall not
permit the Consolidated EBITDA of the Borrower and its Subsidiaries for the
four (4) consecutive Fiscal Quarters most recently ended prior to the date
of determination to be less than Ninety Million Dollars ($90,000,000.00) as of
the end of any Fiscal Quarter; provided, however, for any period after October 31,
2010 in which the Borrower’s Consolidated Leverage Ratio does not exceed 1.0 to
1.0 this covenant of minimum Consolidated EBITDA shall not be applicable and
shall not be tested.

 

ARTICLE 7

EVENTS OF
DEFAULT

 

The occurrence of any of the following events or conditions shall
constitute an Event of Default.

 

Section 7.01.         Failure To Pay.  The failure or refusal of
the Borrower to pay (a) all or any amount or installment of principal due
upon the Loans or upon any LC Borrowing (whether scheduled, by acceleration, or
as otherwise required by the terms of the Credit Documents), or (b)  any
interest, fees or any other payment Obligation within one (1) Business Day
after demand thereof by the Agent.

 

Section 7.02.         Violation Of Covenants.  The failure or refusal of the
Borrower to (a) perform, observe, and comply with any covenant, agreement,
or condition contained in Article 6 of this

 

51

 

Agreement, or (b) the failure of the Borrower to provide any of
the reports or items required by Section 5.09 of this Agreement and such
failure continues for a period of ten (10) Business Days after notice
thereof by the Agent, or (c) timely perform, observe and comply with any
other covenant, agreement, or condition contained in this Agreement (not
specified above in Section 7.01, 7.02(a), 7.02(b) or any other Section of
this Article 7), and such failure or refusal continues for a period of
thirty (30) calendar days after notice thereof by the Agent.

 

Section 7.03.         Representation Or Warranty.  Any representation or
warranty made by the Borrower or by any other Loan Party herein or in any
Credit Document or in any Compliance Certificate or other document or
instrument delivered from time to time to any of the Credit Parties shall be
false, incorrect, or misleading in any material respect when made or deemed
made.

 

Section 7.04.         Cross-Default.  The Borrower or any other
Loan Party (a) fails to make any payment when due (whether by scheduled
maturity, required prepayment, acceleration, demand, or otherwise) in respect
of any Indebtedness or guarantee (other than Indebtedness hereunder and
Indebtedness under Interest Rate Hedge Agreements) having an aggregate
principal amount of more than the Threshold Amount, or (b) fails to
observe or perform any other agreement or condition relating to any such
Indebtedness or guarantee or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event occurs, the effect
of which default or other event is to cause, or to permit the holder or holders
of such Indebtedness or the beneficiary or beneficiaries of such guarantee (or
a trustee or agent on behalf of such holder or holders or beneficiary or
beneficiaries) to cause (without regard to any existing intercreditor arrangements),
with the giving of notice if required, such Indebtedness to be demanded or to
become due or to be repurchased, prepaid, defeased or redeemed (automatically
or otherwise), or an offer to repurchase, prepay, defease or redeem such
Indebtedness to be made, prior to its stated maturity, or such guarantee to
become payable or cash collateral in respect thereof to be demanded; or (c) there
occurs under any Interest Rate Hedge Agreement an “Early Termination Date” (as
defined in such Interest Rate Hedge Agreement) resulting from (i) any
event of default under such Interest Rate Hedge Agreement as to which the
Borrower or any Loan Party is the “Defaulting Party” (as defined in such
Interest Rate Hedge Agreement), or (ii) any “Termination Event” (as so defined
under such Interest Rate Hedge Agreement) as to which the Borrower or any Loan
Party is an “Affected Party” (as so defined under such Interest Rate Hedge
Agreement) and, in either event, the Swap Termination Value owed by the
Borrower or such Loan Party as a result thereof is greater than the Threshold
Amount.

 

Section 7.05.         Judgments.  The Borrower or any of the other Loan Parties
shall suffer final judgments for the payment of money aggregating for all Loan
Parties in excess of the Threshold Amount in excess of available insurance
proceeds and shall not discharge the same within a period of thirty (30) days
unless, pending further proceedings, execution has not been commenced or if
commenced has been effectively stayed.

 

Section 7.06.         Levy By Judgment Creditor.  A judgment creditor of any
Loan Party shall obtain possession of any of the Collateral by any means,
including but not limited to levy, distraint, replevin or self-help, and the
Loan Parties shall not remedy same within thirty (30) days thereof; or a writ
of garnishment is served on the Agent or any other Credit Party relating to any
of the accounts of the Borrower maintained with the Agent or any other Credit
Party.

 

Section 7.07.         Involuntary Insolvency
Proceedings.  The institution
of involuntary Insolvency Proceedings against the Borrower or any Loan Party
and the failure of any such Insolvency Proceedings to be dismissed before the
earliest to occur of (a) the date which is ninety (90) days after the
institution of such Insolvency Proceedings, (b) the entry of any order for
relief in the Insolvency Proceeding or any order adjudicating the Borrower or
any other Loan Party insolvent, or (c) the impairment (as to validity,
priority or otherwise) of any Lien of the Credit Parties in any of the Collateral.

 

52

 

Section 7.08.         Voluntary Insolvency Proceedings.  The commencement by the
Borrower or by any other Loan Party of Insolvency Proceedings.

 

Section 7.09.         Attempt To Terminate Or Limit
Guaranties.  The receipt by
a Credit Party of notice from a Guarantor that such Guarantor is attempting to
terminate or limit any portion of its obligations under a Guaranty Agreement.

 

Section 7.10.         ERISA.  An ERISA Event occurs with
respect to a Pension Plan or Multiemployer Plan which has resulted or could
reasonably be expected to result in liability of any Loan Party under Title IV
of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate
amount in excess of the Threshold Amount, or any Loan Party or any ERISA
Affiliate fails to pay when due, after the expiration of any applicable grace
period, any installment payment with respect to its withdrawal liability under Section 4201
of ERISA under a Multiemployer Plan in an aggregate amount in excess of the
Threshold Amount.

 

Section 7.11.         Injunction.  The issuance of any
injunction against the Borrower or any other Loan Party which enjoins or
restrains the Borrower or any other Loan Party from continuing to conduct any
material part of its business affairs which continues for more than ten (10) days.

 

Section 7.12.         Change Of Control.  The occurrence of any Change
of Control of the Borrower.

 

Section 7.13.         Material Adverse Change.  The occurrence of a Material Adverse Change.

 

ARTICLE 8

RIGHTS AND
REMEDIES OF CREDIT PARTIES

ON THE
OCCURRENCE OF AN EVENT OF DEFAULT

 

Upon the occurrence of an Event of Default and during the continuance
thereof:

 

Section 8.01.         Credit Parties’ Specific Rights
And Remedies.  In addition to
all other rights and remedies provided by applicable Laws and the terms of the
Credit Documents, upon the occurrence and during the continuance of any Event
of Default, the Agent may, on behalf of the Lenders and shall, at the direction
of the Required Lenders (a) declare the commitment of each Lender to
advance proceeds of the Loans and any obligation of the Issuing Lender to issue
any Letters of Credit to be terminated, (b) accelerate and call
immediately due and payable all or any part of the Obligations, (c) require
the Loan Parties to Cash Collateralize the LC Obligations, (d) seek
specific performance or injunctive relief to enforce performance of the
undertakings, duties, and agreements provided in the Credit Documents, whether
or not a remedy at law exists or is adequate, (e) exercise any rights of a
secured creditor under applicable Laws against the Collateral, including (i) the
right to take possession of the Collateral without the use of judicial process
or hearing of any kind, (ii) the right to require the Loan Parties to
assemble the Collateral at such place as the Agent may specify, and (iii) the
right to sell the Collateral, in whole or in part, at either private or public
sale, and (f) seek the appointment of a receiver for any or all of the
Loan Parties and/or the assets of any or all of the Loan Parties.

 

Section 8.02.         Automatic Acceleration.  Upon the occurrence and
during the continuance of an Event of Default as described in Sections 7.07 or
7.08 of this Agreement, Commitments shall automatically terminate, the
Obligations shall be automatically accelerated and due and payable without any
notice, demand or action of any type on the part of the Credit Parties, the
obligations of the Issuing Lender to issue Letters of Credit shall be
automatically terminated, and the Loan Parties shall be automatically required
to Cash Collateralize the LC Obligations.

 

53

 

Section 8.03.         Consent To Appointment Of Receiver. The Borrower irrevocably consents to the
appointment of a receiver upon the request of the Agent during any continuing
Event of Default for it and for any or all of its business affairs and its
assets, which receiver shall be authorized to have and exercise the broadest
powers permitted or available under applicable Laws to operate, manage,
conserve, liquidate and sell any or all of the Borrower’s assets.

 

Section 8.04.         Remedies Cumulative.  The rights and remedies
provided in this Agreement and in the other Credit Documents or otherwise under
applicable Laws shall be cumulative and the exercise of any particular right or
remedy shall not preclude the exercise of any other rights or remedies in
addition to, or as an alternative of, such right or remedy.

 

Section 8.05.         Application Of Funds.  After the exercise of
remedies (or after the Loans have automatically become immediately due and
payable and the LC Obligations have automatically been required to be Cash
Collateralized), any amounts received on account of the Obligations shall be
applied by the Agent in the following order:

 

8.05.1.         First, to the payment of that portion of the Obligations
constituting fees, indemnities, expenses, reimbursements, and other amounts
(including Credit Party Expenses) payable to the Agent, in its capacity as
such.

 

8.05.2.         Second, to the payment of that portion of the
Obligations constituting fees, indemnities and other amounts (other than
principal, interest and Letter of Credit Fees) payable to the Lenders and the
Issuing Lender (including Credit Party Expenses), ratably among the Lenders.

 

8.05.3.         Third, to the payment of that portion of the
Obligations constituting Letter of Credit Fees, accrued and unpaid interest on
the Loans, the LC Borrowings, and other Obligations, ratably among the Lenders
and the Issuing Lender in proportion to the respective amounts described in
this clause Third payable to them.

 

8.05.4.         Fourth, on a pari passu
basis (a) to the payment of that portion of the Obligations constituting
unpaid principal of the Loans and the LC Borrowings ratably among the Lenders
and the Issuing Lender in proportion to the respective amounts described in
this clause Fourth held by them, (b) to pay or cash collateralize
any Obligations of the Borrower to any Interest Rate Hedge Provider arising
from any Interest Rate Hedge Agreement (including Swap Termination Values), and
(c) to that part of the obligations owed to any of the Credit Parties or
to any Affiliates of any of the Credit Parties for Bank Products, as described
in item (d) in the definition of Obligation.

 

8.05.5.         Fifth, to the Agent for the account of the Issuing
Lender, to Cash Collateralize that portion of the LC Obligations comprised of
the aggregate undrawn amount of Letters of Credit.

 

8.05.6.         Last, the balance, if any, after all of the
Obligations have been indefeasibly paid in full, to the Borrower or as
otherwise required by applicable Laws.

 

Amounts
used to Cash Collateralize either the aggregate undrawn amount of Letters of
Credit pursuant to clause Fifth above or the Interest Rate Hedge
Agreements pursuant to clause Fourth above shall be applied to satisfy
drawings under such Letters of Credit and payment obligations under the
Interest Rate Hedge Agreements as they occur. 
If any amounts remain on deposit as Cash Collateral after all Letters of
Credit have been fully drawn or have expired and all Interest Rate Hedge
Agreements have been terminated, such remaining amount shall be applied to
other Obligations, if any, in the order set forth above.

 

54

 

ARTICLE 9

THE AGENT

 

Section 9.01.          Appointment.  Each of the
Lenders and the Issuing Lender hereby irrevocably designates and appoints
M&T Bank as administrative agent under this Agreement and the other Credit
Documents and each Lender and the Issuing Lender authorizes M&T Bank as
their respective administrative agent to take such action on their behalf under
the provisions of this Agreement and the other Credit Documents and to exercise
such powers and perform such duties as are expressly delegated to the Agent by
the terms of this Agreement and such other Credit Documents, together with such
other powers as are reasonably incidental thereto.  The provisions of this Article 9 are
solely for the benefit of the Credit Parties and no Loan Party shall have any
rights as a third party beneficiary of any of such provisions, provided the
Borrower shall have the benefit of the provision in Section 9.05 requiring
the Borrower’s consent to the appointment of a 
successor Agent if there are no continuing Defaults or Events of
Default.

 

Section 9.02.          Exculpatory Provisions.

 

9.02.1.         No Fiduciary, Discretionary or Implied Duties.  The Agent shall not have any duties or
obligations except those expressly set forth herein and in the other Credit
Documents.  Without limiting the
generality of the foregoing, the Agent:

 

(a)           Shall
not be subject to any fiduciary or other implied duties, regardless of whether
a Default or Event of Default has occurred and is continuing;

 

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

 

(c)           Shall not,
except as expressly set forth herein and in the other Credit Documents, have
any duty to disclose, and shall not be liable for the failure to disclose, any
information relating to any Loan Party or any of their Affiliates that is
communicated to or obtained by the Person serving as the Agent or any of its
Affiliates in any capacity.

 

9.02.2.         No Liability for Certain Actions.  The Agent shall not be liable for any action
taken or not taken by it (a) with the consent or at the request of the
Required Lenders (or such other number or percentage of the Lenders as shall be
necessary, or as the Agent shall believe in good faith shall be necessary,
under the circumstances as provided in Sections 8.01 and 10.03) or (b) in
the absence of its own gross negligence or willful misconduct.

 

9.02.3.         Knowledge.  The Agent
shall be deemed not to have knowledge of any Default or Event of Default or
Material Adverse Change unless and until written notice describing such
Default, Event of Default or Material Adverse Change is given to the Agent by a
Credit Party or by a Loan Party.

 

9.02.4.         No Duty to Inquire. 
The Agent shall not be responsible for or have any duty to ascertain or
inquire into (a) any statement, warranty or representation made in or in
connection with this Agreement or any other Credit Document, (b) the
contents of any certificate, report or other document delivered hereunder or
thereunder or in connection herewith or therewith, (c) the performance or
observance of any of the covenants, agreements or other terms or conditions set
forth herein or therein

 

55

 

or the occurrence of any Default or Event of Default, (d) the
validity, enforceability, effectiveness or genuineness of this Agreement, any
other Credit Document or any other agreement, instrument or document or (e) the
satisfaction of any condition set forth in Article 4 or elsewhere herein,
other than to confirm receipt of items expressly required to be delivered to
the Agent.

 

Section 9.03.          Reliance by Agent.  The Agent shall be entitled to rely upon, and
shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing
(including any electronic message, Internet or intranet website posting or
other distribution) believed by it to be genuine and to have been signed, sent
or otherwise authenticated by the proper Person.  The Agent also may 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.  In determining compliance with any condition
hereunder to the making of a Loan, or the issuance of a Letter of Credit, that
by its terms must be fulfilled to the satisfaction of a Lender or the Issuing
Lender, the Agent may presume that such condition is satisfactory to such
Lender or the Issuing Lender unless the Agent shall have received notice to the
contrary from such Lender or the Issuing Lender prior to the making of such
Loan or the issuance of such Letter of Credit. 
The Agent may consult with legal counsel (who may be counsel for 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.

 

Section 9.04.          Delegation of Duties.  The Agent may
perform any and all of its duties and exercise its rights and powers hereunder
or under any other Credit Document by or through any one or more sub-agents
appointed by the Agent.  The Agent and
any such sub-agent may perform any and all of its duties and exercise its
rights and powers by or through their respective Related Parties.  The exculpatory provisions of this Article shall
apply to any such sub-agent and to the Related Parties of the 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.

 

Section 9.05.          Resignation of Agent. 
The Agent may at any time give notice of its resignation to the Credit
Parties and the Borrower.  Upon receipt
of any such notice of resignation, the Required Lenders shall have the right,
with the prior written approval of the Borrower (which approval shall not be
unreasonably withheld or delayed, and shall not be required if a Default or
Event of Default shall have occurred and be continuing), to appoint a successor,
which shall be a bank with an office in the State of Maryland.  If no such successor shall have been so
appointed by the Required Lenders and shall have accepted such appointment
within thirty (30) days after the retiring Agent gives notice of its
resignation, then the retiring Agent may on behalf of the Lenders and the
Issuing Lender, appoint a successor Agent meeting the qualifications set forth
above provided that if the Agent shall notify the Borrower and the Lenders and
Issuing Lender that no qualifying Person has accepted such appointment, then
such resignation shall nonetheless become effective in accordance with such
notice and (a) the retiring Agent shall be discharged from its duties and
obligations hereunder and under the other Credit Documents (except that in the
case of any collateral security held by the Agent on behalf of the Lenders or
the Issuing Lender under any of the Credit Documents, the retiring Agent shall
continue to hold such collateral security until such time as a successor Agent
is appointed) and (b) all payments, communications and determinations
provided to be made by, to or through the Agent shall instead be made by or to
each Lender and the Issuing Lender directly, until such time as the Required
Lenders appoint a successor Agent as provided for above in this paragraph.  Upon the acceptance of a successor’s
appointment as Agent hereunder, such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring
(or retired) Agent, and the retiring Agent shall be discharged therefrom as
provided above in this paragraph.  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 the retiring Agent’s
resignation hereunder and under the other Credit Documents, the provisions of
this Article and Section shall continue in effect for the benefit of
such retiring Agent, its

 

56

 

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

 

Section 9.06.          Non-Reliance
on Agent and Other Lenders.
 Each Lender and the
Issuing Lender acknowledges that it has, independently and without reliance
upon the Agent or any other Lender or any of their Related Parties 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 and the Issuing Lender
acknowledges that it will, independently and without reliance upon the Agent or
any other Lender or any of their Related Parties 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, any other Credit Document or any related agreement or any document
furnished hereunder or thereunder.

 

Section 9.07.          Agent May Hold Collateral For Lenders and
Others.  The Lenders, Issuing Lender and the Loan Parties
acknowledge that any Security Documents relating to the Loans, the Letters of
Credit, the Obligations, or the Collateral, including all of such documents
filed in the public records in order to evidence or perfect the Liens and
security interests granted in the Credit Documents, may name only the Agent, as
agent for the Lenders (including, but not limited to, the Issuing Lender) as
the secured party, mortgagee, beneficiary, or as lienholder.  The Lenders (including, but not limited to,
the Issuing Lender) and the Loan Parties authorize the Agent to hold any or all
of the above-described security interests and Liens in and to the Collateral as
the agent for the ratable benefit of the Lenders.

 

Section 9.08.          The Agent In Its Individual Capacity.  The Person serving as the 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 the Agent and the term “Lender” or “Lenders”
shall, unless otherwise expressly indicated or unless the context otherwise
requires, including the Person serving as the Agent hereunder in its individual
capacity.  Such Person and its Affiliates
may accept deposits from, lend money to, act as the financial advisor or in any
other advisory capacity for and generally engage in any kind of business with
any Loan Party or any Subsidiary or other Affiliate thereof as if such Person
were not the Agent hereunder and without any duty to account therefor to the
Lenders.

 

Section 9.09.          Other Agents. 
None of the Lenders or other Persons identified on the facing page or
signature pages of this Agreement as a “syndication agent,” “documentation
agent,” “co-agent,” “book manager,” “lead manager,” “arranger,” lead arranger,”
or “co-arranger” shall have any right, power, obligation, liability,
responsibility or duty under this Agreement other than, in the case of such
Lenders, those applicable to all Lenders as such.  Without limiting the foregoing, none of the
Lenders or other Persons so identified shall have or be deemed to have any
fiduciary relationship with any Lender. 
Each Lender acknowledges that it has not relied, and will not rely, on
any of the Lenders or other Persons so identified in deciding to enter into
this Agreement or in taking or not taking action hereunder.

 

ARTICLE 10

MISCELLANEOUS

 

Section 10.01.        Notices. Except in the case of notices and other
communications expressly permitted to be given by telephone, all 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 facsimile, as follows:

 

57

 

If to the Loan Parties:

 

Manufacturers And Traders Trust Company

25 S. Charles Street, 12th Floor

Baltimore, Maryland 21201

Attn:       Hugh E. Giorgio, Vice
President

Facsimile: (410) 244-4447

 

-and-

 

Manufacturers And Traders Trust Company

10025 Governor Warfield Parkway, Suite 300

Columbia, Maryland 21044

Attn:       Robert F. Topper, Vice
President

Facsimile: (410) 964-6849

 

If to the BORROWER:

 

Martek Biosciences Corporation

6480 Dobbin Road

Columbia, Maryland 21045

Attn:       David M. Feitel,
Esquire

Facsimile: (410) 740-2985

 

With A Courtesy Copy To:

 

HOGAN & HARTSON L.L.P.

100 International Drive, Suite 2000

Baltimore, Maryland 21202

Attn.: Kevin G. Gralley, Esquire

Facsimile:  (410) 659-2701

 

If to any Lender, to it at its address (or facsimile number) set forth on the signature pages of
this Agreement, on the respective Lender Addendum, or in any Assignment And
Assumption.

 

Any
party hereto may change its address or facsimile number for notices and other
communications hereunder by notice to the other parties 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.

 

Notices
and other communications to the Lenders and the Issuing Lender hereunder may be
delivered or furnished by electronic communication (including e-mail and
Internet or intranet websites) pursuant to procedures approved by the Agent, provided
that the foregoing shall not apply to notices to any Lender or the Issuing Lender
pursuant to any funding or issuance mechanics if such Lender or the Issuing
Lender, as applicable, has notified the Agent that it is incapable of receiving
notices under such Article by electronic communication.  The Agent or the Borrower may, in its discretion,
agree to accept notices and other communications to it hereunder by electronic
communications pursuant to procedures approved by it, provided that
approval of such procedures may be limited to particular notices or
communications.  Unless the Agent
otherwise prescribes, (a) notices and other communications sent to an
e-mail address shall be deemed received upon the sender’s receipt of an
acknowledgement from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other written
acknowledgement), provided that if such notice or other communication is
not sent during the

 

58

 

normal
business hours of the recipient, such notice or communication shall be deemed
to have been sent at the opening of business on the next Business Day for the
recipient, and (b) notices or communications posted to an Internet or
intranet website shall be deemed received upon the deemed receipt by the
intended recipient at its e-mail address as described in the foregoing
clause (a) of notification that such notice or communication is
available and identifying the website address therefor.

 

Section 10.02.        Course of Conduct.  No failure or
delay by any Credit Party in exercising any right or power under any Credit
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 Credit Parties
under the Credit Documents are cumulative and are not exclusive of any rights
or remedies that they would otherwise have. 
No waiver of any provision of any Credit Document or consent to any
departure by any Loan Party therefrom shall in any event be effective unless
such waiver is made in accordance with Section 10.03 of this Agreement,
and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. 
No waiver or indulgence by any of the Credit Parties shall constitute a
future waiver of performance or exact performance by any of the Loan Parties.  No amendment or waiver shall be effective
unless in writing.  Without limiting the
generality of the foregoing, the advance of proceeds of a Loan or the issuance
of a Letter of Credit shall not be construed as a waiver of any Default or an
Event of Default, regardless of whether any Credit Party may have had notice or
knowledge of such Default or Event of Default at the time of such advance or
issuance.

 

Section 10.03.        Waivers and Amendments. Except as expressly set forth herein, any
term, covenant, agreement or condition of this Agreement or of any of the other
Credit Documents may be amended or waived by the Required Lenders on behalf of
the Lenders, and any consent may be given by the Required Lenders on behalf of
the Lenders; provided, however, that no amendment, waiver or consent shall (a) without
the prior written consent of each Lender directly affected thereby, (i) increase
or decrease the principal amount of any Loans or of any Commitments of any
Lender, (ii) extend the Revolving Credit Termination Date, the Term Loan
Maturity Date or the LC Expiration Date, (iii) change any Commitment
Percentage of any such Lender, (iv) change Sections 2.06 or 8.05 or any
other provision relating specifically to the sharing of any prepayments or
payments of Loans to the Lenders in a manner that would alter the pro rata
sharing of payments required thereby, (v) postpone the originally
scheduled time or times of payment of the principal of any of the Loans, the
time or times of payment of interest or of any fees on account of any of the
Loans or Letters of Credit or LC Obligations, or the time or times of payment
of any of the reimbursement obligations in respect of the Letters of Credit or
of any other LC Obligations, or (vi) reduce the rates of interest or fees
payable on any of the Loans or other Obligations, or (b) without the prior
written consent of all of the Lenders, (i) release all or substantially
all of the Collateral (other than as specifically authorized by the terms of
this Agreement or any of the other Credit Documents), (ii) release any
Guarantor; (iii) amend the definition of Required Lenders or modify in any
other manner the number or percentage of Lenders required to make any
determinations or grant any waiver or consent hereunder; (iv) amend the
provisions of this Section 10.03; and provided, further, that no
such agreement shall amend, modify or otherwise affect the rights or duties of
the Agent or the Issuing Lender hereunder without the prior written consent of
the Agent and Issuing Lender, respectively. 
Except as expressly provided to the contrary in this Agreement and with
the exception of amendments to any provision of Article 9 of this
Agreement, this Agreement may not be amended without the prior written consent
of the Borrower.  The Agent and all of
the Lenders may amend or modify any provision of Article 9 of this
Agreement without the need for any consent or approval from the Borrower or any
Loan Party (provided the Borrower’s approval shall be required to revise the
requirement in Section 9.05 to obtain the consent of Borrower to the
appointment of a new Agent if there are no continuing Defaults or Events of
Default).  Notwithstanding anything to
the contrary herein, no Defaulting Lender shall have any right to approve or
disapprove any amendment, waiver or consent hereunder, except that the principal
amounts of any Loans held by such Defaulting Lender may not be increased and
the Commitments and

 

59

 

Commitment Percentages of such Defaulting Lender may
not be increased without the consent of such Defaulting Lender.

 

Section 10.04.        Expenses. The Borrower shall pay all Credit Party Expenses,
including, without limitation (a) all reasonable out-of-pocket expenses
incurred by the Agent and its Affiliates (including the reasonable fees,
charges and disbursements of counsel for the Agent) in connection with the
syndication of the credit facilities provided for herein, the preparation,
negotiation, execution, delivery and administration of this Agreement and the
other Credit Documents or any amendments, modifications or waivers of the
provisions hereof or thereof (whether or not the transactions contemplated
hereby or thereby shall be consummated) and the recordation of any Credit
Documents (including all recording costs and taxes, transfer taxes, documentary
stamps, and the like), (b) all reasonable out-of-pocket expenses incurred
by the Issuing Lender in connection with the issuance, amendment, renewal or
extension of any Letter of Credit or any demand for payment thereunder, and (c) all
reasonable out-of-pocket expenses incurred by 
the Agent, any Lender or the Issuing Lender in connection with the
enforcement or protection of their respective rights under this Agreement and
the other Credit Documents.

 

Section 10.05.        Indemnity.  The Borrower shall indemnify, and shall
cause the other Loan Parties to indemnify, each of the Credit Parties and each
Related Party of any of the Credit Parties (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses (including the reasonable fees,
charges and disbursements of any counsel for any Indemnitee) incurred by any
Indemnitee or asserted against any Indemnitee by any third party or by any Loan
Party arising out of, in connection with, or as a result of (a) the
execution or delivery of this Agreement, any other Credit Document or any
agreement or instrument contemplated hereby or thereby, the performance by the
parties hereto of their respective obligations hereunder or thereunder or the
consummation of the transactions contemplated hereby or thereby, (b) any
Loan or Letter of Credit or the use or proposed use of the proceeds therefrom
(including any refusal by the Issuing Lender to honor a demand for payment
under a Letter of Credit if the documents presented in connection with such
demand do not strictly comply with the terms of such Letter of Credit), (c) any
actual or alleged presence or release of Hazardous Materials on or from any
property owned or operated by any Loan Party, any contamination of a Property
or of any other Collateral, or any Environmental Liability of the Borrower or
any of its Subsidiaries, or (d) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing
whether based on contract, tort or any other theory, whether brought by a third
party or by any Loan Party, and regardless of whether any Indemnitee is a party
thereto, provided that such indemnity shall not as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or
related expenses (i) are determined by a court of competent jurisdiction
by final and nonappealable judgment to have resulted from the gross negligence
or willful misconduct of any Indemnitee, or (ii) result from a claim
brought by a Loan Party against any Indemnitee for breach in bad faith of such
Indemnitee’s obligations hereunder or under any other Credit Document, if the
Borrower or any other Loan Party has obtained a final and nonappealable judgment
in its favor on such claim as determined by a court of competent jurisdiction.
To the extent that the Borrower and the other Loan Parties for any reason fail
to indefeasibly pay any amount required by this Section 10.05 to be paid
to the Agent (or any sub-agent thereof), the Issuing Lender or any Related
Party of any of the foregoing, (but without limiting the obligation of the
Borrower or such other Loan Parties to do so) each Lender severally agrees to
pay to the Agent (or any sub-agent), the Issuing Lender or such Related Party,
as the case may be, such Lender’s applicable 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 Agent (or
any such sub-agent) or the Issuing Lender in its capacity as such, or against
any Related Party of any of the foregoing acting for the Agent (or any such
sub-agent) or the Issuing Lender in connection with such capacity.

 

60

 

Section 10.06.        Waiver of Claims. 
To the
fullest extent permitted by applicable law, the Borrower shall not assert, and
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, any other Credit Document or any agreement or instrument
contemplated hereby, the administration thereof, the transactions contemplated
hereby or thereby, any Loan or Letter of Credit or the use of the proceeds
thereof.  No Indemnitee shall be liable
for any damages arising from the use by unintended recipients of any
information or other materials distributed by it through telecommunications,
electronic or other information transmission systems in connection with this
Agreement or the other Credit Documents or the transactions contemplated hereby
or thereby.  Without limitation to the
foregoing, the Borrower acknowledges that the Agent will make available to the
Lenders materials and information, including the Information, provided by or on
behalf of the Loan Parties by posting such materials and information on
IntraLinks, or another similar electronic system.

 

Section 10.07.        Successors and Assigns Generally. 
The provisions of this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that neither the Borrower nor any other Loan Party may
assign or otherwise transfer any of its rights or obligations without the prior
written consent of the Agent and each other Credit Party and no Lender may
assign or otherwise transfer any of its rights or obligations hereunder except (a) to
an Eligible Assignee in accordance with the provisions of Section 10.08, (b) by
way of participation in accordance with the provisions of Section 10.11,
or (c) by way of pledge or assignment of a security interest subject to
the restrictions of Section 10.12 (and any other attempted assignment or
transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or implied,
shall be construed to confer upon any Person (other than the parties hereto,
their respective successors and assigns permitted hereby, Participants to the
extent provided in Section 10.11) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

 

Section 10.08.        Assignments By Lenders. 
Each Lender may assign to one or more Eligible Assignees all or any
portion of such Lender’s interests, rights and obligations set forth in this
Agreement or the other Credit Documents, including all or a portion of its
Commitments and the Loans (including for purposes hereof, its participations in
LC Obligations) provided that (a) an administrative fee in the amount of
Three Thousand Five Hundred Dollars ($3,500.00) is paid to the Agent by either
the assigning Lender or the Eligible Assignee in connection with the
assignment, (b) if less than all of the assigning Lender’s Commitments and
Loans is to be assigned, the amount of the Commitments and Loans so assigned
shall be for an aggregate principal amount of not less than Five Million
Dollars ($5,000,000.00), (c) each partial assignment shall be made as an
assignment of a proportionate amount of all of the assigning Lender’s rights
and obligations under this Agreement with respect to the Loans and Commitments
assigned, (d) the parties to each such assignment shall execute and
deliver an Assignment And Assumption to the Agent (with copies to be sent
contemporaneously to each Lender), for its acceptance, and (e) such
Assignment And Assumption does not require the filing of a registration
statement with the Securities And Exchange Commission or require the Loans or
the Notes to be qualified in conformance with the requirements imposed by any
blue sky laws or other laws of any state. 
Upon such execution, delivery, acceptance and recording, from and after
the effective date specified in each Assignment And Assumption, which effective
date is at least five (5) Business Days after the execution thereof, (a) the
Eligible Assignee thereunder shall be a party hereto and, to the extent
provided in such Assignment And Assumption, have the rights, duties, and
obligations of a Lender hereunder, and (b) the assigning Lender thereunder
shall, to the extent provided in such Assignment And Assumption, be released from
its duties and obligations under this Agreement but shall continue to be
entitled to all indemnification and reimbursement rights provided to the
Lenders by the Borrower pursuant to any of the Credit Documents with respect to
facts, events, and circumstances occurring prior to the effective date of such
assignment.  By executing and delivering
an Assignment And Assumption, the assigning Lender thereunder and the Eligible
Assignee thereunder confirm to and agree with each other and the other parties
to this Agreement the facts and matters as set forth in such Assignment and
Assumption.  Lenders

 

61

 

may only assign their interests in the Commitments,
the Loans, and Credit Documents to Eligible Assignees. Any assignment or
transfer by a Lender of rights or obligations under the Credit Documents that
does not comply with this paragraph shall be treated for purposes of the Credit
Documents as a sale by such Lender of a participation in such rights and
obligations in accordance with Section 10.11 of this Agreement.  Any consent of the Borrower that is required
for a proposed assignee to be eligible to be an Eligible Assignee shall be
deemed to have been given by the Borrower unless the Borrower objects to such
proposed assignee by written notice to the Agent within five (5) Business
Days after having received notice of the proposed assignment to such assignee.

 

Section 10.09.        Register.  The Agent
shall maintain a copy of each Assignment And Assumption delivered to it and a
register for the recordation of the names and addresses of the Lenders and the
amount of the Loans with respect to each Lender from time to time (the “Register”).  The entries in the Register shall be
conclusive, in the absence of manifest error, and the Borrower, the Agent and
the Lenders may treat each Person whose name is recorded in the Register as a
Lender hereunder for all purposes of this Agreement.  The Register shall be available for
inspection by the Borrower or the Lenders at any reasonable time and from time
to time upon reasonable prior notice.

 

Section 10.10.        Procedures for Implementing Lender Assignments. 
Upon the Agent’s receipt of an Assignment And Assumption executed by an
assigning Lender and an Eligible Assignee together with any Note or Notes
subject to such Assignment and Assumption and any necessary consents to such
Assignment and Assumption, the Agent shall, if such Assignment and Assumption
has been completed and is substantially in the form of Exhibit A attached
hereto (a) accept such Assignment And Assumption, (b) record the
information contained therein in the Register, (c) give prompt notice
thereof to the Borrower, and (d) promptly deliver a copy of such
Assignment And Assumption to the Borrower. 
Within three (3) Business Days after receipt of notice, the
Borrower shall execute and deliver to the Agent, in exchange for the
surrendered Notes, new Notes to the order of such Eligible Assignee in amounts
equal to the Commitments and Commitment Percentages assumed by it pursuant to
such Assignment And Assumption and new Notes to the order of the assigning
Lender in an amount equal to the Commitments and Commitment Percentages
retained by the assigning Lender.  Such
Notes shall be in the aggregate stated principal amount equal to the aggregate
principal amount of such surrendered Notes, shall be dated the effective date
of such Assignment And Assumption and shall otherwise be in substantially the
form of the assigned Notes delivered to the assigning Lender.  The surrendered Notes shall be canceled and
returned to the Borrower. The Borrower expressly acknowledges that the
cancellation of any Note or Notes and the replacement of any Note or Notes in
accordance with this provision shall not constitute or be deemed to be a
refinancing or a novation of any of the Obligations.

 

Section 10.11.        Participations.  Any Lender may
at any time, without the consent of, or notice to, the Borrower, the Agent, or
any other Lender, sell participations to any Person (other than to natural
persons, the Borrower or any of the Borrower’s Affiliates or Subsidiaries, who
would not qualify as an Eligible Assignee) (each, a “Participant”) in
all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitments and Loans owing to
it); provided that (a) such Lender’s obligations under this
Agreement shall remain unchanged, (b) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (c) the Loan Parties and the other Credit Parties shall continue to
deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under this Agreement and the other Credit Documents. Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or wavier of any provision
of this Agreement; provided that such agreement or instrument may provide
that such Lender will not, without the consent of the Participant, agree to any
amendment, modification or waiver that affects such Participant which (a) increases
or decreases the principal amounts of the Commitments or Loans of such Lender, (b) extends
the Revolving Credit Termination Date, the Term Loan Maturity Date or the LC
Expiration Date, (c) postpones the time of payment of principal, interest
or fees on account of the Loans or LC Obligations, (d) reduces the rates
of

 

62

 

interest payable on the Loans or reduces any fees
payable under the Credit Documents, or (e) releases substantially all of
the Collateral that affects such Participant. 
Each Participant shall be entitled to the benefits of Sections 2.08 and
2.09.2 to the same extent as if it were a Lender and had acquired its interest
by assignment pursuant to Section 10.08. 
To the extent permitted by Law, each Participant also shall be entitled
to the benefits of Section 10.18 as though it were a Lender, provided such
Participant agrees to be subject to Section 2.06.4 as though it were a
Lender.  A Participant shall not be
entitled to receive any greater payment under Sections 2.08 or 2.09.3 than the
applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant. 
A Participant that would be a Foreign Lender if it were a Lender shall
not be entitled to the benefits of Section 2.09.3 unless the Borrower is
notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 2.09.5 as
though it were a Lender.

 

Section 10.12.        Pledges.  Any Lender may
at any time pledge or assign a security interest in all or any portion of its
rights under this Agreement to secure obligations of such Lender, including any
pledge or assignment to secure obligations to a Federal Reserve Bank; provided
that no such pledge or assignment shall release such Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

 

Section 10.13.        Resignation By M&T Bank As Issuing Lender.  Notwithstanding anything to the contrary contained
herein, if at any time M&T Bank assigns all of its Commitments and Loans,
M&T Bank may upon thirty (30) days’ notice to the Borrower and the Lenders,
resign as Issuing Lender.  In the event
of any such resignation as Issuing Lender, the Borrower shall be entitled to
appoint from among the Lenders a successor Issuing Lender hereunder; provided,
however, that no failure by the Borrower to appoint any such successor
shall affect the resignation of M&T Bank as Issuing Lender.  If M&T Bank resigns, it shall retain all
the rights, powers, privileges and duties of the Issuing Lender hereunder with
respect to all Letters of Credit outstanding as of the effective date of its
resignation as Issuing Lender and all LC Obligations with respect thereto.  Upon the appointment of a successor Issuing Lender,
(x) such successor shall succeed to and become vested with all of the
rights, powers, privileges and duties of the retiring Issuing Lender, and (y) the
successor Issuing Lender shall issue letters of credit in substitution for the
Letters of Credit, if any, outstanding at the time of such succession or make
other arrangements satisfactory to M&T Bank to effectively assume the
obligations of M&T Bank with respect to such Letters of Credit.

 

Section 10.14.        Survival.  All covenants, agreements,
representations and warranties made by the Borrower herein and in the
certificates or other instruments prepared or delivered in connection with or
pursuant to this Agreement or any other Credit Document shall be considered to
have been relied upon by the other parties hereto and shall survive the execution
and delivery of any Credit Document and the making of any Loans, regardless of
any investigation made by any such other party or on its behalf and
notwithstanding that any Credit Party may have had notice or knowledge of any
Default or incorrect representation or warranty at the time any credit is
extended hereunder, 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 the Credit Documents is outstanding and unpaid and so long as the
Revolving Credit Commitments have not expired or terminated.  The provisions of Sections 2.09, 2.10.3, Article 9
and Sections 10.05 and 10.06 shall survive and remain in full force and
effect regardless of the consummation of the transactions contemplated hereby,
the repayment of the Loans and the termination of the Commitments or the
termination of this Agreement or any provision hereof.

 

Section 10.15.        Counterparts And Integration.  This Agreement may be executed in counterparts (and by
different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract.  This Agreement and the
other Credit Documents constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof.  Except as provided in Article 4,
this Agreement shall become effective when it shall have

 

63

 

been executed by the Agent and when the Agent shall
have received counterparts hereof that, when taken together, bear the
signatures of each of the other parties hereto. 
Delivery of an executed counterpart of a signature page of this
Agreement or a Lender Addendum electronically shall be just as effective as the
delivery of a manually executed counterpart of this Agreement.

 

Section 10.16.        Electronic Execution.  The words “execution”, “signed,” “signature,” and
words of like import in any Assignment and Assumption shall be deemed to
include electronic signatures or the keeping of records in electronic form,
each of which shall be of the same legal effect, validity or enforceability as
a manually executed signature or the use of a paper-based recordkeeping system,
as the case may be, to the extent and as provided for in any applicable law,
including the Federal Electronic Signatures in Global and National Commerce
Act, the New York State Electronic Signatures and Records Act, or any other
similar state laws based on the Uniform Electronic Transactions Act.

 

Section 10.17.        Severability. 
In the
event any one or more of the provisions contained in this Agreement should be
held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein 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 which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

 

Section 10.18.        Right of Setoff. 
If an
Event of Default shall have occurred and be continuing, each of the Credit
Parties and their respective Affiliates and Participants is hereby authorized
at any time and from time to time, to the fullest extent permitted by
applicable law, to setoff and apply any and all deposits (general or special,
time or demand, provisional or final) at any time held and other obligations at
any time owing by it to or for the credit or the account of any Loan Party
against any of and all the obligations of any Loan Party now or hereafter
existing under this Agreement held by it, irrespective of whether or not it
shall have made any demand under this Agreement and although such obligations
may be unmatured.  The rights of each of
the Credit Parties and their respective Affiliates and Participants under this Section are
in addition to other rights and remedies (including other rights of setoff)
that it may have.

 

Section 10.19.        Governing Law. 
This
Agreement shall be governed by, and construed in accordance with, the laws of
the Governing State.

 

Section 10.20.        Jurisdiction. 
The
Borrower hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any state or federal court
located in the Governing State for any action or proceeding arising out of or
relating to this Agreement or the other Credit Documents.

 

Section 10.21.        Venue.  The Borrower
hereby irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection that 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 Credit Documents in any court referred
to in Section 10.20.  Each of the
parties hereto hereby irrevocably waives, to the fullest extent permitted by
applicable law, the defense of an inconvenient forum to the maintenance of such
action or proceeding in any such court.

 

Section 10.22.        Service Of Process. 
Each party
to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 10.01. 
Nothing in this Agreement will affect the right of any party to this
Agreement to serve process in any other manner permitted by law.

 

64

 

Section 10.23.        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 THE OBLIGATIONS.  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 BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

 

Section 10.24.        Time.  Time is of the
essence to this Agreement.

 

Section 10.25.        Treatment of Certain Information; Confidentiality. 
Each Credit Party agrees to maintain the confidentiality of the
Information, except that Information may be disclosed (a) to its
Affiliates and to its and its Affiliates’ respective partners, directors,
officers, employees, agents, advisors and representatives (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 an regulatory authority
purporting to have jurisdiction over it (including any self-regulatory
authority, such as the National Association of Insurance Commissioners), (c) to
the extent required by applicable laws or regulations or by any subpoena or
similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies hereunder or under any other
Credit Document or any action or proceeding relating to this Agreement or any
other Credit Document or the enforcement of rights hereunder or thereunder, (f) subject
to an agreement containing provisions substantially the same as those in this
Section, to any assignee of or Participant in, or any prospective assignee of
or Participant in, any of its rights or obligations under this Agreement or (g) to
the extent such Information (x) becomes publicly available other than as a
result of a breach of this Section or (y) becomes available to any of
the Credit Parties or any of their respective Affiliates on a nonconfidential
basis from a source other than the Borrower. 
Any Person required to maintain the confidentiality of Information as
provided in this Section shall be considered to have complied with its
obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord to
its own confidential information.  Each
of the Credit Parties acknowledges that (i) the Information may include
material non-public information concerning the Loan Parties, (ii) it has
developed compliance procedures regarding the use of material non-public
information, and (iii) it will handle such material non-public information
in accordance with all applicable Laws, including Federal and state securities
Laws.

 

Section 10.26.        Advertisement.  The Borrower
authorizes the Agent to publish the name of the Borrower and the amount of the
financing provided in accordance with this Agreement in any “tombstone” or
comparable advertisement which the Agent elects to publish.  The Borrower further agrees that the Agent
may provide lending industry trade organizations with information necessary and
customary (including, without limitation, the amount and type of facilities,
the rates and counsel’s name) for inclusion in league table measurements after
the Closing Date.  Without limiting the
generality of the foregoing, the Borrower consents to the disclosure by the
Agent after the Closing Date of information relating to the Loans to Gold
Sheets and other similar bank trade publications, with such information to
consist of deal terms consisting of (a) the Borrower’s name, (b) principal
loan amounts, (c) interest rates, (d) term lengths, (e) commitment
fees and other fees to the Lenders in the syndicate, and (f) the identity
of their attorneys and other information customarily found in such
publications.

 

Section 10.27.        Acknowledgments.  The Borrower hereby acknowledges that (a) 
it and each of the other Loan Parties has been advised and represented by
counsel in the negotiation, execution and delivery of each Credit Document, (b) no
Credit Party has any fiduciary relationship with or duty to it or

 

65

 

to the Borrower or any other Loan Party
arising out of or in connection with this Agreement and the relationship
between the Credit Parties, on one hand, and the Borrower and the other Loan
Parties, on the other hand, in connection herewith is solely that of creditor
and debtors, and (c) no joint venture exists among the Credit Parties and
the Borrower or any of the other Loan Parties.

 

Section 10.28.        USA Patriot Act Notice. Each Credit Party that is subject to the
Act hereby notifies the Borrower that pursuant to the requirements of the Act
it is required to obtain, verify and record information that identifies the
Borrower, which information includes the name and address of the Borrower and
other information that will allow such Credit Party to identify the Borrower in
accordance with the Act.

 

[Signatures begin on following page]

 

66

 

IN WITNESS WHEREOF, the parties hereto, intending to
be legally bound hereby, have caused this Credit Agreement to be executed by
their respective duly Authorized Officers as of the date first written above.

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  MARTEK
  BIOSCIENCES CORPORATION,

  
	
   

  	
  a
  Delaware Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Peter L. Buzy

  	
  (SEAL)

  
	
   

  	
   

  	
  Name:
  Peter L. Buzy

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer, Treasurer and Executive Vice President for Finance
  and Administration

  

 

 

NOTARY ACKNOWLEDGMENT

 

STATE
OF MARYLAND, CITY/COUNTY OF HOWARD, TO WIT:

 

I
HEREBY CERTIFY that on this 18th day of March,
2010, before me, the undersigned Notary Public of the State of Maryland,
personally appeared Peter L. Buzy, and acknowledged himself to be the Chief
Financial Officer of MARTEK BIOSCIENCES CORPORATION, a Delaware corporation,
and that he, as such officer, being authorized so to do, executed the foregoing
instrument for the purposes therein contained by signing the name of MARTEK
BIOSCIENCES CORPORATION by himself as its Chief Financial Officer.

 

IN
WITNESS MY Hand and Notarial Seal.

 

 

	
   

  	
  /s/
  Sarah E. Chandler

  	
  (SEAL)

  
	
   

  	
       NOTARY
  PUBLIC

  
	
   

  	
   

  
	
  My
  Commission Expires:

  	
   

  
	
  3-22-2011

  	
   

  

 

[Signatures continue on following page]

 

67

 

	
   

  	
  AGENT:

  
	
   

  	
  MANUFACTURERS
  AND TRADERS TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Hugh E. Giorgio 

  	
  (SEAL)

  
	
   

  	
   

  	
  Name:
  Hugh E. Giorgio

  
	
   

  	
   

  	
  Title:
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SYNDICATION
  AGENT:

  
	
   

  	
  BANK
  OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Mary K. Giermek 

  	
  (SEAL)

  
	
   

  	
   

  	
  Name:
  Mary K. Giermek

  
	
   

  	
   

  	
  Title:
  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DOCUMENTATION
  AGENT:

  
	
   

  	
  SUNTRUST
  BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Paul Deerin

  	
  (SEAL)

  
	
   

  	
   

  	
  Name:
  Paul Deerin

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CO-AGENT:

  
	
   

  	
  CAPITAL
  ONE, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joseph Chirico

  	
  (SEAL)

  
	
   

  	
   

  	
  Name:
  Joseph Chirico

  
	
   

  	
   

  	
  Title:
  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LENDER:

  
	
   

  	
   

  
	
   

  	
  MANUFACTURERS
  AND TRADERS TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert F. Topper

  	
  (SEAL)

  
	
   

  	
   

  	
  Name:
  Robert F. Topper

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

68

 

Schedule 3.02

(Capital Stock of Guarantors)

 

	
  Name
  of Guarantor

  	
   

  	
  Par

  Value

  	
   

  	
  Number of

  Authorized Shares

  	
   

  	
  Number of Issued and

  Outstanding Shares

  	
   

  
	
  Martek Biosciences Boulder Corporation

  	
   

  	
  $

  	
  0.001

  	
   

  	
  100

  	
   

  	
  100

  	
   

  
	
  Martek Biosciences Kingstree Corporation

  	
   

  	
  $

  	
  0.001

  	
   

  	
  100

  	
   

  	
  100

  	
   

  
	
  Amerifit Pharma, Inc.

  	
   

  	
  $

  	
  0.01

  	
   

  	
  1000

  	
   

  	
  100

  	
   

  
	
  Amerifit Brands, Inc.

  	
   

  	
  $

  	
  0.01

  	
   

  	
  1000

  	
   

  	
  100

  	
   

  
	
  Amerifit, Inc.

  	
   

  	
  $

  	
  0.01

  	
   

  	
  1000

  	
   

  	
  100

  	
   

  
	
  Martek Amerifit Holding Corporation

  	
   

  	
  $

  	
  0.01

  	
   

  	
  500

  	
   

  	
  10

  	
   

  

 

 

Schedule 3.03

(Subsidiaries)

 

	
  Name
  Of Loan Party

  	
   

  	
  Subsidiaries Of Loan Party

  
	
   

  	
   

  	
   

  
	
  Martek
  Biosciences Corporation

  	
   

  	
  Martek
  Biosciences Boulder Corporation

  
	
   

  	
   

  	
  Martek
  Biosciences Kingstree Corporation

  
	
   

  	
   

  	
  Martek
  Amerifit, LLC

  
	
   

  	
   

  	
   

  
	
  Martek
  Biosciences Boulder Corporation

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Martek
  Biosciences Kingstree Corporation

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Martek
  Amerifit, LLC

  	
   

  	
  Martek
  Amerifit Holding Corporation

  
	
   

  	
   

  	
   

  
	
  Amerifit
  Pharma, Inc.

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Amerifit
  Brands, Inc.

  	
   

  	
  Amerifit, Inc.

  
	
   

  	
   

  	
  Amerifit
  Pharma, Inc.

  
	
   

  	
   

  	
   

  
	
  Amerifit, Inc.

  	
   

  	
  Estroven,
  Ltd.

  
	
   

  	
   

  	
   

  
	
  Martek
  Amerifit Holding Corporation

  	
   

  	
  Amerifit
  Brands, Inc.

  
	
   

  	
   

  	
   

  
	
  Estroven,
  Ltd.

  	
   

  	
  None

  

 

 

Schedule 3.20

(Material Contracts)

 

NONE

 

 

Schedule 6.03

(Indebtedness)

 

NONE

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]