Document:

Exhibit
10.2

 

CREDIT AGREEMENT (this “Agreement”),
dated as of May 13, 2004, among PP HOLDING CORPORATION, a Delaware corporation
(“Holdings”), PP ACQUISITION CORPORATION, a Delaware corporation (the “Borrower”),
the several banks and other financial institutions or entities from time to
time parties to this Agreement (the “Lenders”), GENERAL ELECTRIC CAPITAL
CORPORATION, LEHMAN COMMERCIAL PAPER INC. and UBS SECURITIES LLC, as
co-documentation agents (in such capacity, the “Co-Documentation Agents”),
BEAR STEARNS CORPORATE LENDING INC., as syndication agent (in such capacity,
the “Syndication Agent”), and JPMORGAN CHASE BANK, as administrative
agent.

 

W I  T  N  E  S
S  E  T  H:

 

WHEREAS, the Borrower
will acquire all the capital stock of Polypore, Inc., a Delaware corporation
(the “Company”), pursuant to the Stock Purchase Agreement, dated as of
January 30, 2004 (the “Acquisition Agreement”), between the
Company, the sellers named therein and the Borrower;

 

WHEREAS, pursuant to the
Acquisition Agreement, the Borrower will be merged with and into the Company,
with the Company continuing as the surviving corporation in such merger (the “Merger”);
and

 

WHEREAS, upon the
effectiveness of the Merger, the Company will succeed to all rights and
obligations of the Borrower by operation of law and all references herein and
in the other Loan Documents to the term “Borrower” shall thereupon be
deemed to be references to the Company;

 

NOW, THEREFORE, in
consideration of the premises and to induce the Administrative Agent and the
Lenders to enter into this Agreement and to induce the Lenders to make their
respective extensions of credit to the Borrower hereunder, the parties hereto
hereby agree as follows:

 

ARTICLE I

 

Definitions

 

               
SECTION 1.1.  Defined Terms. 
As used in this Agreement, the following terms shall have the meanings
specified below:

 

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

 

“Acquired CapEx Amount”
shall have the meaning assigned to such term in Section 6.10(a).

 

“Acquired Entity”
shall have the meaning assigned to such term in Section 6.4(g).

 

“Acquisition”
shall mean the acquisition by the Borrower of all the outstanding capital stock
of the Company and its subsidiaries pursuant to the Acquisition Agreement,
under which the Company shall have been merged into the Borrower, with the
Borrower being the surviving entity.

 

“Acquisition Agreement”
shall have the meaning assigned to such term in the recitals, as such agreement
may be amended, supplemented or otherwise modified from time to time in
accordance with Section 6.15.

 

 

 

“Acquisition
Documentation” shall mean, collectively, the Acquisition Agreement and all
schedules, exhibits and annexes thereto and all side letters and agreements
affecting the terms thereof or entered into in connection therewith.

 

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

 

“Administrative Agent
Fees” shall have the meaning assigned to such term in Section 2.5(b).

 

“Affiliate” shall
mean, when used with respect to a specified person, another person that
directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the person specified.

 

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

 

“Aggregate Alternative
Currency Exposure” shall mean, as at any date of determination with respect
to any Lender, the Dollar Equivalent of the sum of (a) the principal amount of
such Lender’s outstanding Revolving Loans denominated in an Alternative
Currency on such date and (b) the aggregate amount of such Lender’s Alternative
Currency L/C Exposure on such date.

 

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

 

“Alternate Base Rate”
shall mean, for any day, a rate per annum (rounded upwards, if necessary, to
the next 1/100 of 1%) equal to the greatest of (a) the Prime Rate in effect on
such day and (b) the Federal Funds Effective Rate in effect on such day plus 1⁄2
of 1%.  For purposes hereof:  “Prime Rate” shall mean the rate
of interest per annum publicly announced from time to time by JPMorgan Chase
Bank as its prime rate in effect at its principal office in New York City (the
Prime Rate not being intended to be the lowest rate of interest charged by
JPMorgan Chase Bank in connection with extensions of credit to debtors). 
Any change in the ABR due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective as of the opening of business on the
effective day of such change in the Prime Rate or the Federal Funds Effective
Rate, respectively.

 

“Alternative
Currencies” shall mean Euros.

 

“Alternative Currency
L/C Exposure” shall mean at any time the Dollar Equivalent of the sum of
(a) the aggregate undrawn amount of all outstanding Letters of Credit
denominated in an Alternative Currency at such time and (b) the aggregate
principal amount of all L/C Disbursements with respect to Letters of Credit
denominated in an Alternative Currency that have not yet been reimbursed at
such time.  The Alternative Currency L/C Exposure of any Revolving Credit
Lender at any time shall equal its Pro Rata Percentage of the aggregate
Alternative Currency L/C Exposure at such time.

 

“Alternative Currency
Loans” shall mean Term Loans and Revolving Loans denominated in any
Alternative Currency.

 

“Alternative Currency
Sublimit” shall mean $50,000,000.

 

“Applicable Percentage”
shall mean, for any day, with respect to any Eurodollar Loan or ABR Loan, as
the case may be, the applicable percentage set forth below under the caption
“Eurodollar Spread-

 

 

 

2

 

 

Term Loans”, “ABR Spread-Term Loans”, “Eurodollar
Spread-Revolving Loans and Swingline Loans” or “ABR Spread-Revolving Loans and
Swingline Loans”, as the case may be:

 

	
  Eurodollar

  Spread-

  Term Loans

  	
   

  	
  ABR
  Spread-

  Term Loans

  	
   

  	
  Eurodollar
  Spread-

  Revolving Loans and

  Swingline Loans

  	
   

  	
  ABR
  Spread-

  Revolving Loans and

  Swingline Loans

  	
   

  
	
  2.50

  	
  %

  	
  1.50

  	
  %

  	
  2.50

  	
  %

  	
  1.50

  	
  %

  

 

; provided, that on and after the first
Adjustment Date (as defined in the definition of “Pricing Grid”) occurring
after October 2, 2004, the Applicable Percentage with respect to Revolving
Loans and Swingline Loans will be determined pursuant to the Pricing Grid.

 

“Approved Fund”
shall have the meaning assigned to such term in Section 9.4.

 

“Asset Sale” shall
mean the sale, transfer or other disposition (by way of merger, casualty,
condemnation or otherwise but excluding investments permitted by
Section 6.4) by Holdings, the Borrower or any of the Subsidiaries to any
person other than the Borrower or any Subsidiary Guarantor of (a) any Equity
Interests of any of the Subsidiaries (other than directors’ qualifying shares
or the sale by any person of Equity Interests of such person) or (b) any other
assets of Holdings, the Borrower or any of the Subsidiaries (other than (i)
inventory, damaged, obsolete or worn out assets, scrap and Permitted
Investments, in each case disposed of in the ordinary course of business, (ii)
dispositions between or among the Borrower and Domestic Subsidiaries, (iii)
dispositions listed on Schedule 1.1(c) hereto;  (iv) dispositions between
or among Foreign Subsidiaries and (v) dispositions of assets from the Borrower
or a Domestic Subsidiary to a Foreign Subsidiary if the disposition were
treated as an Investment in the Foreign Subsidiary and would be permitted by
Section 6.4), provided, that any asset sale or series of related
asset sales described in clause (b) above having a value not in excess of
$2,000,000 shall be deemed not to be an “Asset Sale” for purposes of
this Agreement.

 

“Assignee” shall
have the meaning assigned to such term in Section 9.4(b).

 

“Assignment and
Assumption” shall mean an Assignment and Assumption, substantially in the
form of Exhibit A or such other form as may be approved by the Administrative
Agent.

 

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

 

“Borrower” shall
have the meaning assigned to such term in the preamble hereto.

 

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

 

“Borrowing Request”
shall mean a request by the Borrower in accordance with the terms of
Section 2.3 and substantially in the form of Exhibit B, or such other form
as shall be approved by the Administrative Agent.

 

“Breakage Event”
shall have the meaning assigned to such term in Section 2.15.

 

 

3

 

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

 

“Calculation Date”
shall mean (a) three Business Days prior to the last Business Day of each
calendar quarter and (b) any other Business Day selected by the Administrative
Agent in its discretion; provided that each date that is on or about the
date of any borrowing request or rollover request with respect to any
Alternative Currency Loan shall also be a “Calculation Date” with respect to
the relevant Alternative Currency.

 

“Capital Expenditures”
shall mean, for any period, (a) the additions to property, plant and equipment
and other capital expenditures of the Borrower and its consolidated
Subsidiaries that are (or should be) set forth in a consolidated statement of
cash flows of the Borrower for such period prepared in accordance with GAAP and
(b) Capital Lease Obligations or Synthetic Lease Obligations incurred by the
Borrower and its consolidated Subsidiaries during such period, but excluding in
each case (i) any such expenditure made to restore, replace or rebuild property
to the condition of such property immediately prior to any damage, loss,
destruction or condemnation of such property, to the extent such expenditure is
made with insurance proceeds, condemnation awards or damage recovery proceeds
relating to any such damage, loss, destruction or condemnation, (ii) any such
expenditure made as the purchase price of any Permitted Acquisition, (iii)
capital expenditures relating to the construction or acquisition of any
property that has been transferred to a Person (other than Holdings or any
Subsidiary) pursuant to a sale-leaseback transaction permitted under
Section 6.3, (iv) interest capitalized during such period, (v) the
purchase price of equipment that is purchased during such period to the extent
the consideration therefor consists of any combination of (x) used or surplus
equipment traded in at the time of such purchase and (y) the proceeds of a
concurrent sale of used or surplus equipment, in each case, in the ordinary
course of business, (vi) the purchase price of equipment that is purchased
substantially contemporaneously with the trade-in of existing equipment to the
extent that the gross amount of the such price is reduced by the credit granted
by the seller of such equipment for the equipment being traded at such time or
(vii) any capital expenditures made with Net Cash Proceeds received from an
Asset Sale.  Except for purposes of computing Excess Cash Flow, any buyout
payments of the Exide Lease not in excess of $10,000,000 in the aggregate shall
be deemed not to constitute a Capital Expenditure.

 

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

 

“Cash Management
Obligations” shall mean obligations owed by Holdings, the Borrower or any
of its Subsidiaries to any Lender or any Affiliate of a Lender in respect of
any overdraft and related liabilities arising from treasury, depository and
cash management services or any automated clearing house transfers of funds.

 

“Change in Control”
shall mean any of the following events:

 

(a)  prior to the
initial Public Equity Offering, the Permitted Investors shall fail to
beneficially own, directly or indirectly, Equity Interests in Holdings
representing more than 50% of the aggregate ordinary voting power represented
by the issued and outstanding Equity Interests of Holdings;

 

 

4

 

(b)  after the
initial Public Equity Offering, any “person” or “group” (within the meaning of
the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in
effect on the date hereof) other than the Permitted Investors becomes, directly
or indirectly, the beneficial owner of Equity Interests in Holdings
representing more than 35% of the aggregate ordinary voting power represented
by the issued and outstanding Equity Interests of Holdings and the percentage
of aggregate voting power owned by such “person” or “group” exceeds the
percentage of ordinary voting power owned by the Permitted Investors;

 

(c)  at any time,
occupation of a majority of the seats (other than vacant seats) on the board of
directors of Holdings or the Borrower by persons who were neither (i) nominated
by the board of directors of Holdings or the Borrower, as the case may be, nor
(ii) appointed by directors so nominated;

 

(d)  the occurrence
of any change in control or similar event (however denominated) with respect to
Holdings or the Borrower under and as defined in any indenture or agreement in
respect of Material Indebtedness to which Holdings, the Borrower or a
Subsidiary is a party; or

 

(e)  at any time,
Holdings shall cease to directly own, beneficially and of record, 100% of the
issued and outstanding Equity Interests of the Borrower.

 

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

 

“Charges” shall
have the meaning assigned to such term in Section 9.9.

 

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

 

“Closing Date”
shall mean May 13, 2004.

 

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

 

“Co-Documentation
Agents” shall have the meaning assigned to such term in the preamble
hereto.

 

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

 

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

 

“Commitment Fee”
shall have the meaning assigned to such term in Section 2.5(a).

 

“Company” shall
have the meaning assigned to such term in the recitals.

 

 

5

 

“Conduit Lender”
shall mean  any special purpose corporation organized and administered by
any Lender for the purpose of making Loans otherwise required to be made by
such Lender and designated by such Lender in a written instrument; provided,
that the designation by any Lender of a Conduit Lender shall not relieve the
designating Lender of any of its obligations to fund a Loan under this
Agreement if, for any reason, its Conduit Lender fails to fund any such Loan,
and the designating Lender (and not the Conduit Lender) shall have the sole
right and responsibility to deliver all consents and waivers required or
requested under this Agreement with respect to its Conduit Lender, and provided,
further, that no Conduit Lender shall (a) be entitled to receive any
greater amount pursuant to Section 2.14, 2.15, 2.19 or 9.5 than the
designating Lender would have been entitled to receive in respect of the
extensions of credit made by such Conduit Lender or (b) be deemed to have any
Commitment.

 

“Confidential
Information Memorandum” shall mean the Confidential Information Memorandum
of the Borrower dated April 16, 2004.

 

“Consolidated EBITDA”
shall mean, for any period, Consolidated Net Income for such period plus (a)
without duplication and to the extent deducted in determining such Consolidated
Net Income, the sum of (i) Consolidated Interest Expense for such period, (ii)
all income tax expense (including, without limitation, income tax expense of
consolidated Foreign Subsidiaries) and foreign withholding tax expense for such
period, (iii) all amounts attributable to depreciation and amortization for
such period, (iv) any non-recurring fees, cash charges and other cash expenses
made or incurred in connection with the Transactions that are paid or otherwise
accounted for within 180 days of the consummation of the Transactions, (v) any
extraordinary losses, (vi) (A) facilities relocation or closing costs, (B)
non-recurring restructuring costs and (C) integration costs and fees, including
cash severance costs, in connection with Permitted Acquisitions, in each case
incurred during such period and payable in cash, in an aggregate amount under
this clause (vi) not to exceed $10,000,000, (vii) amortization and impairment
charges resulting from purchase accounting adjustments (including inventory
step-up adjustments recognized in costs of sales and write-offs of in-process
research and development costs), (viii) any non-cash compensation charges and
deferred compensation charges, including arising from stock options, taken
during such period, (ix) any other non-cash charges (other than the write-down
of current assets), impairments and expenses for such period (including
amortization of loan acquisition costs and unrealized gains and losses on
Hedging Agreements and gains and losses on foreign exchange (including in
respect of intercompany notes)), (x) special incentives paid in the first
fiscal quarter of 2003 to management of the Borrower in an aggregate amount not
to exceed $2,361,000, (xi) one-time salary and bonus payment made prior to the
Closing Date to certain stockholders of the Borrower in an aggregate amount not
to exceed $7,500,000 and (xii) all operating lease payments not in excess of
$3,000,000 associated with the Exide Lease during such period minus (b)
without duplication (i) all cash payments made during such period on account of
non-cash charges added to Consolidated Net Income pursuant to clauses (a)(viii)
or (ix) above in such period or in a previous period and (ii) to the extent
included in determining such Consolidated Net Income, any extraordinary gains
and all non-cash items of income (other than normal accruals in the ordinary
course of business) for such period, all determined on a consolidated basis in
accordance with GAAP.

 

“Consolidated Interest
Expense” shall mean, for any period, the sum of (a) the interest expense
(including imputed interest expense in respect of Capital Lease Obligations and
Synthetic Lease Obligations), net of cash interest income of the Borrower and
its Subsidiaries for such period, determined on a consolidated basis in
accordance with GAAP, plus (b) any interest accrued during such period
in respect of Indebtedness of the Borrower or any Subsidiary that is required
to be capitalized rather than included in consolidated interest expense for
such period in accordance with GAAP. For purposes of the foregoing, interest
expense shall be determined (a) by excluding non-cash interest expense and
amortization of deferred financing costs and original issue discount and (b)
after giving effect to any net

 

 

6

 

payments made or received by the Borrower or any
Subsidiary with respect to interest rate Hedging Agreements.

 

“Consolidated Net
Income” shall mean, for any period, the net income or loss of the Borrower
and its Subsidiaries for such period determined on a consolidated basis in
accordance with GAAP (adjusted to reflect any charge, tax or expense incurred
or accrued by Holdings during such period as though such charge, tax or expense
had been incurred by the Borrower, to the extent that the Borrower has made or
would be entitled under the Loan Documents to make any payment to or for the
account of Holdings in respect thereof); provided, that there shall be
excluded (a) the income of any Subsidiary to the extent that the declaration or
payment of dividends or similar distributions by the Subsidiary of that income
is not at the time permitted by operation of the terms of its charter or any
agreement, instrument, judgment, decree, statute, rule or governmental
regulation applicable to such Subsidiary, (b) the income or loss of any person
accrued prior to the date it becomes a Subsidiary or is merged into or
consolidated with the Borrower or any Subsidiary or the date that such person’s
assets are acquired by the Borrower or any Subsidiary, (c) the income of any
person in which any other person (other than the Borrower or a wholly owned
Subsidiary or any director holding qualifying shares in accordance with
applicable law) has a joint interest, except to the extent of the amount of
dividends or other distributions actually paid to the Borrower or a wholly
owned Subsidiary by such person during such period, (d) any gains or losses
attributable to sales of assets out of the ordinary course of business in
excess of $2,500,000 and (e) gains and losses, realized or unrealized, relating
to fluctuations in currency values.  Notwithstanding anything set forth in
clause (a) above to the contrary, a Foreign Subsidiary may agree to restrict
its ability to declare dividends or similar distributions without excluding the
net income of such Foreign Subsidiary from Consolidated Net Income so long as
(a) the agreement that restricts such ability relates to Indebtedness of such
Foreign Subsidiary described in Section 6.1(h) or Section 6.1(n), (b)
the proceeds thereof are used, directly or indirectly through intercompany
transfers, to prepay the Loans and (c) the net income of such Foreign
Subsidiary, together with the net income of each other Foreign Subsidiary
subject to a similar restriction, does not exceed 10% of Consolidated Net
Income.

 

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

 

“Credit Event”
shall have the meaning assigned to such term in Section 4.1.

 

“Cumulative Excess
Cash Flow” shall mean the sum of Excess Cash Flow (but not less than zero
in any period) for the period commencing on the Closing Date and ending on
January 1, 2005 and Excess Cash Flow for each succeeding fiscal year
commencing with the fiscal year ended December 31, 2005 and ending on the
Borrower’s most recently ended fiscal year.

 

“Cure Amount”
shall have the meaning assigned to such term in Article VII.

 

“Cure Right” shall
have the meaning assigned to such term in Article VII.

 

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

 

“Current Liabilities”
shall mean, at any time, the consolidated current liabilities of the Borrower
and the Subsidiaries at such time, but excluding, without duplication, (a) the
current portion of any long-term Indebtedness and (b) outstanding Revolving
Loans and Swingline Loans.

 

 

7

 

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

 

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

 

“De Minimis Holders”
shall mean, with respect to any wholly owned Subsidiary holders of directors’
qualifying shares and other de minimis ownership interests required to be owned
under foreign law by local residents.

 

“Determination Date”
shall mean each date that is three Business Days after any Calculation Date.

 

“Dollar Equivalent”
shall mean on any date of determination, with respect to any amount hereunder
denominated in an Alternative Currency, the amount of Dollars that may be
purchased with such amount of such currency at the Exchange Rate (determined as
of the applicable Determination Date) with respect to such currency on such
date.

 

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

 

“Domestic Subsidiaries”
shall mean all Subsidiaries incorporated or organized under the laws of the
United States of America, any State thereof or the District of Columbia. 
If a Foreign Subsidiary becomes a Guarantor and complies with the provisions of
Section 5.9 as to collateral, the Borrower may elect by written notice to
the Administrative Agent to treat such Subsidiary as a Domestic Subsidiary for
purposes of the Loan Documents; provided, that the Administrative Agent
concludes, in its reasonable discretion, that the Lenders would have
substantially the same rights against such Subsidiary pursuant to the Security
Documents under the law of the relevant foreign jurisdiction as the Lenders
would have if such Subsidiary were organized in the United States of America.

 

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

 

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

 

 

8

 

“Environmental Permits”
shall mean any and all permits, licenses, approvals, registrations,
notifications, exemptions and any other authorization pursuant to any
Environmental Law.

 

“Equity Interests”
shall mean shares of capital stock, partnership interests, membership interests
in a limited liability company, beneficial interests in a trust or other equity
interests in any person.

 

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

 

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

 

“ERISA Event”
shall mean (a) any “reportable event”, as defined in Section 4043 of ERISA
or the regulations issued thereunder, with respect to a Plan (other than an
event for which the 30-day notice period is waived); (b) the existence with
respect to any Plan of an “accumulated funding deficiency” (as defined in
Section 412 of the Code or Section 302 of ERISA), whether or not
waived; (c) the filing pursuant to Section 412(d) of the Code or
Section 303(d) of ERISA of an application for a waiver of the minimum
funding standard with respect to any Plan; (d) the incurrence by the Borrower
or any of its ERISA Affiliates of any liability under Title IV of ERISA with
respect to the termination of any Plan or the withdrawal or partial withdrawal
of the Borrower or any of its ERISA Affiliates from any Plan or Multiemployer
Plan; (e) the receipt by the Borrower or any of its ERISA Affiliates from the
PBGC or a plan administrator of any notice relating to the intention to
terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f)
the adoption of any amendment to a Plan that would require the provision of
security pursuant to Section 401(a)(29) of the Code or Section 307 of
ERISA; (g) the receipt by the Borrower or any of its ERISA Affiliates of any notice,
or the receipt by any Multiemployer Plan from the Borrower or any of its ERISA
Affiliates of any notice, concerning the imposition of Withdrawal Liability or
a determination that a Multiemployer Plan is, or is expected to be, insolvent
or in reorganization, within the meaning of Title IV of ERISA; (h) the
occurrence of a “prohibited transaction” with respect to which Holdings, the
Borrower, any of the Subsidiaries or any ERISA Affiliate is a “disqualified
person” (within the meaning of Section 4975 of the Code) or with respect
to which Holdings, the Borrower or any such Subsidiary or ERISA Affiliate could
otherwise be liable; or (i) any other event or condition with respect to a Plan
or Multiemployer Plan that could result in liability of the Borrower or any ERISA
Affiliate.

 

“Euro” and “€”
shall mean the single currency of participating member states of the European
Union.

 

“Euro Term Loan”
shall have the meaning assigned to such term in Section 2.1.

 

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

 

“Euro Term Loan
Commitment” shall mean, with respect to each Lender, the commitment of such
Lender to make Euro Term Loans hereunder as set forth on Schedule 2.1, or
in the Assignment and Assumption pursuant to which such Lender assumed its Euro
Term Loan Commitment, as applicable, as the same may be (i) reduced from time
to time pursuant to Section 2.9 and (ii) reduced or increased from time to
time pursuant to assignments by or to such Lender pursuant to Section 9.4. 
The original aggregate amount of the Euro Term Loan Commitments is €36,000,000.

 

 

9

 

“Euro Term Percentage”: 
as to any Lender at any time, the percentage which such Lender’s Euro Term Loan
Commitment then constitutes of the aggregate Euro Term Loan Commitments (or, at
any time after the Closing Date, the percentage which the principal amount of
such Lender’s Euro Term Loan then outstanding constitutes of the aggregate
principal amount of the Euro Term Loans then outstanding).

 

“Eurocurrency Reserve
Requirements” shall mean, for any day as applied to a Eurodollar Loan, the
aggregate (without duplication) of the maximum rates (expressed as a decimal
fraction) of reserve requirements in effect on such day (including basic,
supplemental, marginal and emergency reserves) under any regulations of the
Board or other Governmental Authority having jurisdiction with respect thereto
dealing with reserve requirements prescribed for eurocurrency funding
(currently referred to as “Eurocurrency Liabilities” in Regulation D of the
Board) maintained by a member bank of the Federal Reserve System. “Eurodollar”,
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate
determined by reference to the Eurodollar Rate.

 

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

 

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

 

	
   

  	
  Eurodollar Base
  Rate

  	
   

  
	
  1.00 -
  Eurocurrency Reserve Requirements

  

 

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

 

“Excess Cash Flow”
shall mean, for any fiscal year of the Borrower, the excess of (a) the sum,
without duplication, of (i) Consolidated EBITDA for such fiscal year and (ii)
reductions to noncash working capital of the Borrower and the Subsidiaries for
such fiscal year (i.e., the
decrease, if any, in Current Assets minus Current Liabilities from the
beginning to the end of such fiscal year) over (b) the sum, without
duplication, of (i) the amount of any Tax Payments in cash by the Borrower and
the Subsidiaries with respect to such fiscal year, (ii) Consolidated Interest
Expense for such fiscal year payable in cash, (iii) Capital Expenditures made
in cash in accordance with Section 6.10 and cash expenditures in
connection with Permitted Acquisitions during such fiscal year, in each case
except to the extent financed with the proceeds of Indebtedness, equity
issuances or other proceeds that would not be included in Consolidated EBITDA
for such fiscal year, (iv) permanent repayments of Indebtedness (other than
mandatory prepayments of Loans under Section 2.13), including the
principal component of Capitalized Lease Obligations and Synthetic Lease
Obligations, made by the Borrower and the

 

 

10

 

Subsidiaries during such fiscal year, but only to the
extent that such prepayments by their terms cannot be reborrowed or redrawn and
do not occur in connection with a refinancing of all or any portion of such
Indebtedness, (v) additions to noncash working capital for such fiscal year (i.e., the increase, if any, in Current
Assets minus Current Liabilities from the beginning to the end of such fiscal
year), (vi) proceeds received by the Loan Parties during such fiscal year from
insurance claims with respect to casualty events, business interruption or
product recalls which reimburse prior business expenses, (vii) management fees
for such fiscal year permitted to be paid under Section 6.6(a)(iii),
(viii) cash indemnity payments received during such fiscal year pursuant to
indemnification provisions in any agreement in connection with the Acquisition,
any Permitted Acquisition or any other Investment permitted hereunder (or in
any similar agreement related to any other acquisition consummated prior to the
Closing Date), (ix) Restricted Payments made in such fiscal year to the extent
such Restricted Payments are permitted under Section 6.6(a)(ii) and 6.6(a)(iv),
(x) letter of credit fees paid in such fiscal year, (xi) all extraordinary cash
charges for such fiscal year, (xii) cash payments made in satisfaction of
current liabilities during such fiscal year, (xiii) to the extent included in
determining Consolidated EBITDA, non-recurring cash charges for such fiscal
year, (xiv) to the extent added to Consolidated Net Income in determining
Consolidated EBITDA, losses from discontinued operations for such fiscal year,
(xv) cash expenditures made in respect of Hedging Agreements during such fiscal
year to the extent not reflected in the computation of Consolidated EBITDA,
(xvi) to the extent not deducted from Consolidated Net Income in determining
Consolidated EBITDA, cash payments for employment benefits made during such
fiscal year and (xvii) to the extent not deducted from Consolidated Net Income
in determining Consolidated EBITDA, cash payments for reserves deemed
appropriate by the Borrower for environmental liabilities during such fiscal
year.  For purposes of computation of Excess Cash Flow, Consolidated
EBITDA shall be computed by excluding (A) items (iv), (v), (vi) and, so long as
no Indebtedness is incurred by Holdings, the Borrower or any Subsidiary in
connection with the buyout of the Exide Lease, item (xii) of clause (a) of the
definition of Consolidated EBITDA to the extent such items are paid in cash
during such fiscal year, (B) without duplication of clause (b)(xvii) above and
to the extent added to Consolidated Net Income in determining Consolidated EBITDA,
reserves deemed appropriate by the Borrower for environmental liabilities for
such fiscal year, (C) without duplication of clause (b)(xvi) above and to the
extent added to Consolidated Net Income in determining Consolidated EBITDA,
employment benefits for such fiscal year and (D) to the extent added to
Consolidated Net Income in determining Consolidated EBITDA, working capital
changes resulting from purchase accounting for such fiscal year.

 

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

 

“Excluded Taxes”
shall mean, with respect to the Administrative Agent, any Lender, the Issuing
Bank or any other recipient of any payment to be made by or on account of any
obligation of the Borrower hereunder, (a) income or franchise taxes imposed on
(or measured by) its net income by the United States of America, or by the
jurisdiction under the laws of which such recipient is organized or in

 

 

11

 

which its principal office is located or, in the case
of any Lender, in which its applicable lending office is located, (b) any
branch profits taxes imposed by the United States of America or any similar tax
imposed by any other jurisdiction described in clause (a) above and (c) in the
case of a Foreign Lender (other than an assignee pursuant to a request by the
Borrower under Section 2.20(a)), any withholding tax that is imposed on
amounts payable to such Foreign Lender at the time such Foreign Lender becomes
a party to this Agreement (or designates a new lending office) or is
attributable to such Foreign Lender’s failure to comply with
Section 2.19(e), 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 2.19(a).

 

“Executive Order”
shall mean have the meaning assigned to such term in Section 3.26.

 

“Exide Lease”
shall mean, collectively, (i) the Master Equipment Lease Agreement dated as of
December 23, 1997 between General Electric Capital Corporation, as Lessor,
and Exide Corporation, as Lessee, and (ii) the Sublease Agreement dated as of
December 15, 1999 between Exide Delaware LLC and Daramic, Inc.

 

“Existing Credit
Agreement” shall mean the Credit Agreement, dated as of December 15,
1999, among the Company, each of the subsidiaries of the Company party thereto,
the lenders party thereto and JPMorgan Chase Bank, as administrative agent, as
such agreement may be amended, supplemented or otherwise modified from time to
time prior to the date hereof.

 

“Facility” shall
mean each of (a) the US$ Term Commitments and the US$ Term Loans made
thereunder (the “US$ Term Facility”), (b) the Euro Term Commitments and
the Euro Term Loans made thereunder (the “Euro Term Facility”), (c) the
Incremental Term Commitments and the Incremental Term Loans made thereunder
(the “Incremental Term Facility”) and (d) the Revolving Credit
Commitments and the extensions of credit made thereunder (the “Revolving
Facility”).

 

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

 

“Fee Letter” shall
mean the Administrative Agent Fee Letter dated January 30, 2004, between
the Borrower and the Administrative Agent.

 

“Fee Payment Date”
shall mean (a) the third Business Day following the last day of each March,
June, September and December and (b) the Revolving Credit Maturity
Date.

 

“Fees” shall mean
the Commitment Fees, the Administrative Agent Fees, the L/C Participation Fees,
the Issuing Bank Fees and any other fees payable by a Loan Party pursuant to a
fee agreement entered into with the Administrative Agent or any other Lender.

 

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

 

“Financial Performance
Covenant” shall have the meaning assigned to such term in Article VII.

 

 

12

 

“Foreign Asset Control
Regulations” shall mean have the meaning assigned to such term in
Section 3.26.

 

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

 

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

 

“Funded Debt”
shall mean, as to any Person, all Indebtedness of such Person that matures more
than one year from the date of its creation or matures within one year from
such date but is renewable or extendible, at the option of such Person, to a
date more than one year from such date or arises under a revolving credit or
similar agreement that obligates the lender or lenders to extend credit during
a period of more than one year from such date, including all current maturities
and current sinking fund payments in respect of such Indebtedness whether or
not required to be paid within one year from the date of its creation and, in
the case of the Borrower, Indebtedness in respect of the Loans.

 

“Funding Office”
shall mean the office of the Administrative Agent specified in Section 9.1
or such other office as may be specified from time to time by the
Administrative Agent as its funding office by written notice to the Borrower
and the Lenders.

 

“GAAP” shall mean
United States of America generally accepted accounting principles.

 

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

 

“Group Members”
shall mean the collective reference to Holdings, the Borrower and the
Subsidiaries.

 

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

 

“Guarantee and
Collateral Agreement” shall mean the Guarantee and Collateral Agreement to
be executed and delivered by Holdings, the Borrower and each Subsidiary
Guarantor, substantially in the form of Exhibit C.

 

“Guarantors” shall
mean Holdings and the Subsidiary Guarantors.

 

“Hazardous Materials”
shall mean (a) any petroleum products or byproducts and all other hydrocarbons,
coal ash, radon gas, asbestos, urea formaldehyde foam insulation,
polychlorinated

 

 

13

 

biphenyls, chlorofluorocarbons and all other
ozone-depleting substances and (b) any chemical, material, substance or waste
that is prohibited, limited or regulated by or pursuant to any Environmental
Law.

 

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

 

“Holdings” shall
have the meaning assigned to such term in the preamble hereto.

 

“Holdings Equity
Contribution” shall have the meaning assigned to such term in
Section 4.2(j).

 

“Inactive Subsidiary”
shall mean any Subsidiary of the Borrower that (a) does not conduct any
business operations, (b) has assets with a total book value not in excess of
$10,000 and (c) does not have any Indebtedness outstanding.

 

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

 

“Incremental Term Loan
Amount” shall mean, at any time, the excess, if any, of (a) $200,000,000
over (b) the aggregate amount of all Incremental Term Loan Commitments
established prior to such time pursuant to Section 2.23.

 

“Incremental Term Loan
Assumption Agreement” shall mean an Incremental Term Loan Assumption
Agreement in form and substance reasonably satisfactory to the Administrative
Agent, among the Borrower, the Administrative Agent and one or more Incremental
Term Lenders.

 

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

 

“Incremental Term Loan
Commitment” shall mean the commitment of any Lender, established pursuant
to Section 2.23, to make Incremental Term Loans to the Borrower.

 

“Incremental Term Loan
Maturity Date” shall mean the final maturity date of any Incremental Term
Loan, as set forth in the applicable Incremental Term Loan Assumption
Agreement.

 

“Incremental Term Loan
Repayment Dates” shall mean the dates scheduled for the repayment of principal
of any Incremental Term Loan, as set forth in the applicable Incremental Term
Loan Assumption Agreement.

 

“Incremental Term
Loans” shall mean Term Loans made by one or more Lenders to the Borrower
pursuant to Section 2.1(b).  Incremental Term Loans may be made in
the form of additional Term Loans or, to the extent permitted by
Section 2.23 and provided for in the relevant Incremental Term Loan
Assumption Agreement, Other Term Loans.

 

“Indebtedness” of
any person shall mean, without duplication, (a) all obligations of such person
for borrowed money, (b) all obligations of such person evidenced by bonds,
debentures, notes or similar instruments, (c) all obligations of such person
under conditional sale or other title retention agreements relating to property
or assets purchased by such person, (d) all obligations of such person issued
or assumed as the deferred purchase price of property or services (excluding
trade accounts payable and accrued obligations incurred in the ordinary course
of business), (e) all Indebtedness of others secured by (or for which the
holder of such Indebtedness has an existing right, contingent or otherwise, to
be secured

 

 

14

 

by) any Lien on property owned or acquired by such
person, whether or not the obligations secured thereby have been assumed (it
being understood that, unless such person shall have assumed such obligations,
the amount of such Indebtedness shall be the lesser of (x) the fair market
value of the property securing such Indebtedness and (y) the stated principal
amount of such Indebtedness), (f) all Guarantees by such person of Indebtedness
of others, (g) all Capital Lease Obligations and Synthetic Lease Obligations of
such person, (h) all outstanding reimbursement obligations of such person as an
account party in respect of letters of credit, (i) all obligations of such
person in respect of bankers’ acceptances and (j) all obligations of such
person under or in respect of Hedging Agreements.  For purposes of determining
the amount of Indebtedness of any person under clause (j) of the preceding
sentence, the amount of the obligations of such person in respect of any
Hedging Agreement at any time shall be zero prior to the time any counterparty
to such Hedging Agreement shall be entitled to terminate such Hedging Agreement
and, thereafter, shall be the maximum aggregate amount (giving effect to any
netting agreements) that such person would be required to pay if such Hedging
Agreement were terminated at such time.  The Indebtedness of any person
shall include the Indebtedness of any partnership in which such person is a
general partner only to the extent such person is liable therefor by contract,
as a matter of law or otherwise, and shall not include any Indebtedness of such
partnership that is expressly non-recourse to such person.  For
clarification purposes, the liability of the Borrower or any Subsidiary
Guarantor to make any periodic payments to licensors in consideration for the
license of patents and technical information under license agreements in
existence on the Closing Date and any amount payable in respect of a settlement
of disputes with respect to such payments thereunder, shall not constitute
Indebtedness.  Indebtedness incurred by Holdings pursuant to
Section 6.1 shall not be included in the computations under Sections 6.11
or 6.12.  Notwithstanding any other provision of this Agreement to the
contrary, (i) the term “Indebtedness” shall not be deemed to include (x) any
earn-out obligation until such obligation becomes a liability on the balance
sheet of the applicable Person, (y) any deferred compensation arrangements or
(z) any non compete or consulting obligations incurred in connection with
Permitted Acquisitions and (ii) the amount of Indebtedness for which recourse
is limited either to a specified amount or to an identified asset of such
Person shall be deemed to be equal to such specified amount or the fair market
value of such identified asset, as the case may be.

 

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

 

“Interest Coverage
Ratio” shall mean, for any period, the ratio of (a) Consolidated EBITDA for
such period to (b) Consolidated Interest Expense for such period.

 

“Interest Payment Date”
shall mean (a) as to any ABR Loan (other than any Swingline Loan), the last day
of each March, June, September and December to occur while such Loan
is outstanding and the final maturity date of such Loan, (b) as to any
Eurodollar Loan having an Interest Period of three months or less, the last day
of such Interest Period, (c) as to any Eurodollar Loan having an Interest
Period longer than three months, each day that is three months, or a whole
multiple thereof, after the first day of such Interest Period and the last day
of such Interest Period, (d) as to any Loan (other than any Revolving Loan that
is an ABR Loan and any Swingline Loan), the date of any repayment or prepayment
made in respect thereof and (e) as to any Swingline Loan, the day that such
Loan is required to be repaid.

 

“Interest Period”
shall mean, as to any Eurodollar Loan, (a) initially, the period commencing on
the borrowing or conversion date, as the case may be, with respect to such
Eurodollar Loan and ending one, two, three or six or (if available to all
Lenders under the relevant Facility) twelve months thereafter, as selected by
the Borrower in its notice of borrowing or notice of conversion, as the case
may be, given with respect thereto; and (b) thereafter, each period commencing
on the last day of the next preceding Interest Period applicable to such
Eurodollar Loan and ending one, two, three or six or (if available to all
Lenders under the relevant Facility) twelve months thereafter, as selected by
the Borrower by irrevocable notice to the Administrative Agent not later than
11:00 A.M., Local Time, on the date that is three

 

 

15

 

Business Days prior to the last day of the then
current Interest Period with respect thereto; provided that, all of the
foregoing provisions relating to Interest Periods are subject to the following:

 

(i)           
if any Interest Period would otherwise end on a day that is not a Business Day,
such Interest Period shall be extended to the next succeeding Business Day
unless the result of such extension would be to carry such Interest Period into
another calendar month in which event such Interest Period shall end on the
immediately preceding Business Day;

 

(ii)          
the Borrower may not select an Interest Period under a particular Facility that
would extend beyond the Revolving Credit Maturity Date or beyond the date final
payment is due on the Term Loans, as the case may be; and

 

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

 

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

 

“Issuing Bank Fees”
shall have the meaning assigned to such term in Section 2.5(c).

 

“Judgment Currency”
shall have the meaning assigned to such term in Section 9.19.

 

“Judgment Currency
Conversion Date” shall have the meaning assigned to such term in
Section 9.19.

 

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

 

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

 

“L/C Exposure”
shall mean at any time the Dollar Equivalent of the sum of (a) the aggregate
undrawn amount of all outstanding Letters of Credit at such time and (b) the
aggregate principal amount of all L/C Disbursements that have not yet been
reimbursed at such time.  The L/C Exposure of any Revolving Credit Lender
at any time shall equal its Pro Rata Percentage of the aggregate L/C Exposure
at such time.

 

“L/C Participation Fee”
shall have the meaning assigned to such term in Section 2.5(c).

 

“Lenders” shall
mean (a) the persons listed on Schedule 2.1 (other than any such person
that has ceased to be a party hereto pursuant to an Assignment and Assumption)
and (b) any person that has become a party hereto pursuant to an Assignment and
Assumption.  Unless the context clearly indicates otherwise, the term
“Lenders” shall include the Swingline Lender.

 

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

 

 

16

 

“Leverage Ratio”
shall mean, on any date, the ratio of the total Indebtedness of the Borrower
and the Subsidiaries on a consolidated basis on such date to Consolidated
EBITDA for the period of four consecutive fiscal quarters most recently ended
on or prior to such date.

 

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

 

“Loan Documents”
shall mean this Agreement, the Letters of Credit, the Security Documents, any
fee letters entered into between any Loan Party and the Administrative Agent or
any Lender and each Incremental Term Loan Assumption Agreement.

 

“Loan Parties”
shall mean the Borrower and the Guarantors.

 

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

 

“Local Time” shall
mean (a) in the case of Alternative Currency Loans or Letters of Credit
denominated in an Alternative Currency, London time (or, in the case of the
definition of “Eurodollar Base Rate” with respect to Loans denominated in
Euros, Brussels time) and (b) in all other cases, New York City time.

 

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

 

“Material Adverse
Effect” shall mean (a) a materially adverse effect on the business,
operations, assets, liabilities, financial condition or results of operations
of Holdings, the Borrower and the Subsidiaries, taken as a whole, (b) a
material impairment of the ability of the Borrower or any other Loan Party to
perform any of its obligations under any Loan Document to which it is or will
be a party or (c) a material impairment of the rights of or benefits available
to the Lenders under any Loan Document.

 

“Material Indebtedness”
shall mean Indebtedness (other than the Loans and Letters of Credit) of any one
or more of Holdings, the Borrower and the Subsidiaries in an aggregate
principal amount exceeding $10,000,000.

 

“Material Subsidiary”
shall mean, at any time, any Subsidiary which at such time shall be a
“significant subsidiary” of the Borrower within the meaning of Regulation S-X
of the SEC as in effect on the date hereof; provided, that the Borrower
and its Material Subsidiaries shall at all times have assets during the term of
this Agreement constituting at least 90% of the Borrower’s consolidated total
assets; provided, further, that each Subsidiary which owns any
Intellectual Property (other than Intellectual Property with an aggregate fair
market value of less than $1,500,000) shall be deemed to be a Material
Subsidiary hereunder.

 

“Materials of
Environmental Concern” shall mean any gasoline or petroleum (including
crude oil or any fraction thereof) or petroleum products, asbestos,
polychlorinated biphenyls and urea-formaldehyde insulation, molds, pollutants,
contaminants, radioactivity, radiofrequency radiation or any other radiation
associated with or allegedly associated with the telecommunications business,
and any other substance of any kind that is regulated pursuant to or gives rise
to liability under any applicable Environmental Law.

 

“Maximum Rate”
shall have the meaning assigned to such term in Section 9.9.

 

 

17

 

“Merger” shall
have the meaning assigned to such term in the recitals.

 

“Mortgaged Properties”
shall mean, initially, the real properties owned or leased by the Loan Parties
specified on Schedule 1.1(b), and shall include each parcel of real
property and improvements thereto with respect to which a Mortgage is granted
pursuant to Section 5.9.

 

“Mortgages” shall
mean the mortgages, deeds of trust, leasehold mortgages, assignments of leases
and rents, modifications and other security documents delivered pursuant to
clause (i) of Section 4.2(h) or pursuant to Section 5.9, each
substantially in the form of Exhibit F.

 

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

 

“Net Cash Proceeds”
shall mean (a) with respect to any Asset Sale or Recovery Event, the cash proceeds
(including cash proceeds subsequently received (as and when received) in
respect of noncash consideration initially received), net of (i) selling
expenses (including reasonable broker’s and investment banking fees or
commissions, legal, environmental assessment, appraisal and consultant’s fees,
transfer and similar taxes and the Borrower’s good faith estimate of income
taxes paid or payable in connection with such sale), (ii) amounts provided as a
reserve, in accordance with GAAP, against (A) any liabilities under any
indemnification obligations or purchase price adjustment associated with such
Asset Sale and (B) any liabilities associated with such asset or assets and
retained by the Borrower or any of its Subsidiaries after such sale or other
disposition thereof, including, without limitation, pension and other
post-employment benefit liabilities and liabilities related to environmental
matters or against any indemnification obligations associated with such
transaction (provided, that, to the extent and at the time any such
amounts are released from such reserve, such amounts shall constitute Net Cash
Proceeds) and (iii) the principal amount, premium or penalty, if any, interest
and other amounts on any Indebtedness for borrowed money which is secured by
the asset sold in such Asset Sale or the asset relating to such Recovery Event,
as applicable, and which is required to be repaid with such proceeds (other
than any such Indebtedness assumed by the purchaser of such asset); provided,
however, that, if (x) the Borrower shall deliver a certificate of a
Financial Officer to the Administrative Agent at the time of receipt thereof
setting forth the Borrower’s intent to reinvest such proceeds in productive
assets of a kind used or useful in the business of the Borrower and its
Subsidiaries within 365 days of receipt of such proceeds and (y) no Default or
Event of Default shall have occurred and shall be continuing at the time of
such certificate or at the proposed time of the application of such proceeds,
such proceeds shall not constitute Net Cash Proceeds except to the extent not
so used or contractually committed to be used at the end of such 365-day
period, at which time such proceeds shall be deemed to be Net Cash Proceeds;
and (b) with respect to any issuance or disposition of Indebtedness, the cash
proceeds thereof, net of all taxes and fees (including investment banking fees,
underwriting discounts, commissions, costs and other out-of-pocket expenses and
other customary expenses) incurred in connection therewith.

 

“Not Otherwise Applied”
shall mean, with reference to any amount of Net Cash Proceeds of any
transaction or event or of Excess Cash Flow, that such amount was not required
to be applied to prepay the Loans pursuant to Section 2.13(c).

 

“Obligation Currency”
shall have the meaning assigned to such term in Section 9.19.

 

“Obligations” the
unpaid principal of and interest on (including interest accruing after the
maturity of the Loans (including the Incremental Term Loans) and Reimbursement
Obligations and interest accruing after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding, relating to the Borrower, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding) the Loans and all other
obligations and liabilities of the

 

 

18

 

Borrower to the Administrative Agent or to any Lender
(or, in the case of Specified Hedging Agreements, any affiliate of any Lender),
whether direct or indirect, absolute or contingent, due or to become due, or
now existing or hereafter incurred, which may arise under, out of, or in
connection with, this Agreement, any other Loan Document, the Letters of
Credit, any Specified Hedging Agreement or any other document made, delivered
or given in connection herewith or therewith, whether on account of principal,
interest, reimbursement obligations, fees, indemnities, costs, expenses
(including all fees, charges and disbursements of counsel to the Administrative
Agent or to any Lender that are required to be paid by the Borrower pursuant
hereto) or otherwise.

 

“OID” shall have
the meaning assigned to such term in Section 2.23(b).

 

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

 

“Other Term Loans”
shall have the meaning assigned to such term in Section 2.23(a).

 

“Parent” shall
mean any direct or indirect parent of Holdings.

 

“Participant”
shall have the meaning assigned to such term in Section 9.4(c).

 

“Patriot Act shall
have the meaning assigned to such term in Section 9.17.

 

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

 

“Perfection
Certificate” shall mean the Perfection Certificate substantially in the
form of Exhibit D, prepared by the Borrower.

 

“Permitted Acquisition”
shall have the meaning assigned to such term in Section 6.4(g).

 

“Permitted Cure
Securities” shall have the meaning assigned to such term in
Article VII.

 

“Permitted Investments”
shall mean:

 

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

 

(b) investments in commercial paper maturing within
one year from the date of acquisition thereof and having, at such date of
acquisition, one of the two highest credit ratings obtainable from Standard
& Poor’s Ratings Service or from Moody’s Investors Service, Inc. or
carrying an equivalent rating by a nationally recognized rating agency, if both
of the two named rating agencies cease publishing ratings of investments;

 

(c) investments in certificates of deposit, Eurodollar
deposits, overnight bank deposits or banker’s acceptances, demand deposits and
time deposits maturing within one year from the date

 

 

19

 

of acquisition thereof issued or guaranteed by or
placed with, and money market deposit accounts issued or offered by, the
Administrative Agent or any domestic office of any Lender or any other
commercial bank organized under the laws of the United States of America or any
State thereof that has a combined capital and surplus and undivided profits of
not less than $500,000,000 or issued by or offered by a bank organized under
the laws of any foreign country recognized by the United States the long-term
debt of which is rated at least “A” or the equivalent by S&P or “A” or the
equivalent thereof by Moody’s having at the date of acquisition thereof
combined capital and surplus of not less than $500,000,000 or the foreign
currency equivalent thereof;

 

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

 

(e) investments in marketable direct obligations
issued by any state of the United States of America or any political
subdivision of any such state or any public instrumentality thereof 
maturing within one year from the date of acquisition thereof and having, at
such date of acquisition, one of the two highest credit ratings obtainable from
Standard & Poor’s Ratings Service or from Moody’s Investors Service, Inc.;

 

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

 

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

 

(h) solely with respect to any Foreign Subsidiary,
non-Dollar denominated (i) certificates of deposit of, bankers acceptances of,
or time deposits with, any commercial bank which is organized and existing
under the laws of the country in which such Foreign Subsidiary maintains its
chief executive office and principal place of business provided such country is
a member of the Organization for Economic Cooperation and Development, and
whose short-term commercial paper rating from S&P is at least A-1 or the
equivalent thereof or from Moody’s is at least P-1 or the equivalent thereof
(any such bank being an “Approved Foreign Bank”) and maturing within
twelve (12) months of the date of acquisition and (ii) equivalents of demand
deposit accounts which are maintained with an Approved Foreign Bank.

 

“Permitted Investors”
shall mean (a) the Sponsor, (b) the other holders of Equity Interests in
Holdings on the Closing Date and, to the extent approved by the Administrative
Agent (such approval not to be unreasonably withheld) other persons who, within
45 days after the Closing Date, become holders of Equity Interests in Holdings
(and any Affiliate of any such person under this clause (b)) and (c) the
directors, executive officers and other management employees of Holdings or the
Borrower on the Closing Date.

 

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

 

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

 

 

20

 

“Pricing Grid” the
table set forth below.

 

	
  Leverage
  Ratio

  	
   

  	
  Eurodollar
  Spread-

  Revolving Loans and

  Swingline Loans

  	
   

  	
  ABR
  Spread-

  Revolving Loans and

  Swingline Loans

  	
   

  
	
  Category 1

   

  Greater than 3.50 to
  1.00

  	
   

  	
  2.50

  	
  %

  	
  1.50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Category 2

   

  Greater than 3.00 to
  1.00, but less than or equal to 3.50 to 1.00

  	
   

  	
  2.25

  	
  %

  	
  1.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Category 3

   

  Greater than 2.50 to
  1.00, but less than or equal to 3.00 to 1.00

  	
   

  	
  1.75

  	
  %

  	
  0.75

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Category 4

   

  Less than or equal to 2.50 to 1.00

  	
   

  	
  1.50

  	
  %

  	
  0.50

  	
  %

  

 

Each change in the
Applicable Percentage resulting from a change in the Leverage Ratio shall be
effective with respect to all Loans and Letters of Credit outstanding on and
after the date (the “Adjustment Date”) of delivery to the Administrative
Agent of the financial statements and certificates required by
Section 5.4(a) or (b) and Section 5.4(c), respectively, indicating
such change, and until the date immediately preceding the next date of delivery
of such financial statements and certificates indicating another such
change.  Notwithstanding the foregoing, until the Borrower shall have
delivered the financial statements and certificates required by
Section 5.4(b) and Section 5.4(d), respectively, for the fiscal
period ended on or about June 30, 2004, the Leverage Ratio shall be deemed
to be in Category 1 for purposes of determining the Applicable Percentage. In
addition, (a) at any time during which the Borrower has failed to deliver the
financial statements and certificates required by Section 5.4(a) or (b)
and Section 5.4(c), respectively, or (b) at any time after the occurrence
and during the continuance of an Event of Default, the Administrative Agent or
the Required Lenders may require that the Leverage Ratio shall be deemed to be
in Category 1 for purposes of determining the Applicable Percentage.

 

“Pro Forma Basis”
shall mean, with respect to compliance with any test or covenant hereunder,
compliance with such covenant or test after giving effect to any proposed
Permitted Acquisition, the proposed Exide Lease buyout or Asset Sale (including
pro forma adjustments arising out of events which are directly attributable to
the proposed Permitted Acquisition or Asset Sale, are factually supportable and
are expected to have a continuing impact, in each case as reasonably determined
by the Borrower and as certified by a Financial Officer of the Borrower and
approved by the Administrative Agent) using, for purposes of determining such
compliance, the historical financial statements of all entities or assets so
acquired or sold or to be acquired or sold and the consolidated financial
statements of the Borrower and its Subsidiaries which shall be reformulated as
if such Permitted Acquisitions or Asset Sale, and all other Permitted
Acquisitions or Asset Sales that have been consummated during the period, and
any Indebtedness or other liabilities incurred or repaid in connection with any
such Permitted Acquisitions or Asset Sale had been consummated and incurred or
repaid at the beginning of such period  (and if such

 

 

21

 

Indebtedness has a floating or formula rate, shall
have an implied rate of interest for the applicable period for purposes of this
definition determined by utilizing the rate which is or would be in effect with
respect to such Indebtedness as at the relevant date of determination); provided,
that, in connection with any Permitted Acquisition and the buyout of the Exide
Lease, the Borrower shall be permitted to assume cost savings certified by a
Responsible Officer of the Borrower and expected to be achieved within a
twelve-month period following the closing of such Permitted Acquisition if the
consolidated balance sheet of such acquired Person and its consolidated
Subsidiaries as at the end of the period preceding the acquisition of such Person
and the related consolidated statements of income and stockholders’ equity and
of cash flows for the period in respect of which Consolidated EBITDA is to be
calculated (x) have been previously provided to the Administrative Agent and
(y) either (1) have been reported on without a qualification arising out of the
scope of the audit by independent certified public accountants of nationally
recognized standing or (2) have been found acceptable by the Administrative
Agent.  For purposes of determining compliance with the covenants set
forth in Sections 6.11 and 6.12 (and the computations made for purposes of
determining the Applicable Percentage), all calculations shall be made on a Pro
Forma Basis after giving effect to the Transactions, treating each as if it
were a Permitted Acquisition (subject, in the case of the Transactions, to the
limitations contained in clause (a)(iv) of the definition of Consolidated
EBITDA).

 

“Pro Forma Compliance”
shall mean, at any date of determination, that the Borrower shall be in pro
forma compliance with the covenants set forth in Sections 6.11 and 6.12 as of
the date of such determination or the last day of the most recent fiscal
quarter-end, as the case may be (computed on the basis of (a) balance sheet
amounts as of such date and (b) income statement amounts for the most recently
completed period of four consecutive fiscal quarters for which financial
statements shall have been delivered to the Administrative Agent and calculated
on a Pro Forma Basis in respect of the event giving rise to such
determination).

 

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

 

“Proposed
Restructuring” shall mean the proposed restructuring of the Borrower and
its Subsidiaries as set forth in Schedule 1.1(d) hereto.

 

“Public Equity
Offering” shall mean an underwritten public offering of common stock of,
and by, Holdings or Parent pursuant to a registration statement filed with the
SEC in accordance with the Securities Act of 1933, as amended, which yields not
less than $75,000,000 in Net Cash Proceeds to Holdings.

 

“Recovery Event”
shall mean any settlement of or payment in respect of any property or casualty
insurance claim or any condemnation proceeding relating to any asset of any
Loan Party.

 

“Register” shall
have the meaning assigned to such term in Section 9.4(b).

 

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

 

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

 

 

22

 

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

 

“Reimbursement
Obligation” shall mean the obligation of the Borrower to reimburse the
Issuing Bank pursuant to Section 2.22(e) for amounts drawn under Letters
of Credit.

 

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

 

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

 

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

 

“Required Lenders”
shall mean, at any time, the holders of more than 50% of (a) until the Closing
Date, the Commitments then in effect and (b) thereafter, the sum of (i) the aggregate
unpaid principal amount of the Term Loans then outstanding and (ii) the Total
Revolving Credit Commitments then in effect or, if the Revolving Credit
Commitments have been terminated, the total Revolving Credit Exposure of all
Lenders at such time; provided, that the unused Term Commitment, unused
Revolving Credit Commitment of, and the portion of the Term Loans and Revolving
Credit Exposure held or deemed held by, any Defaulting Lender shall be excluded
for purposes of making a determination of Required Lenders.

 

“Reset Date” shall
have the meaning assigned to such term in Section 1.5.

 

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

 

“Restricted
Indebtedness” shall mean Indebtedness of Holdings, the Borrower or any
Subsidiary, the payment, prepayment, repurchase or defeasance of which is restricted
under Section 6.9(b).

 

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

 

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

 

“Revolving Credit
Commitment” shall mean, as to any Lender, the obligation of such Lender, if
any, to make Revolving Credit Loans and participate in Swingline Loans and
Letters of Credit in an aggregate principal and/or face amount not to exceed
the amount set forth under the heading “Revolving Credit Commitment” opposite
such Lender’s name on Schedule 2.1 or in the Assignment and Assumption
pursuant to which such Lender became a party hereto, as the same may be changed
from time to time pursuant to the terms hereof.

 

 

23

 

“Revolving Credit
Exposure” shall mean, with respect to any Lender at any time, the aggregate
principal amount at such time of all outstanding Revolving Loans of such
Lender, plus the aggregate amount at such time of such Lender’s L/C
Exposure, plus the aggregate amount at such time of such Lender’s
Swingline Exposure.  In the case of Revolving Loans denominated in
Alternative Currencies, such amount shall be calculated using the Dollar
Equivalent thereof.

 

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

 

“Revolving Credit
Maturity Date” shall mean May 13, 2010.

 

“Revolving Loans”
shall mean the revolving loans made by the Lenders to the Borrower pursuant to
clause (iii) of Section 2.1(a).

 

“SEC” shall mean
the Securities and Exchange Commission, any successor thereto and any analogous
Governmental Authority.

 

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

 

“Security Documents”
shall mean the Mortgages, the Guarantee and Collateral Agreement and each of
the security agreements, mortgages and other instruments and documents executed
and delivered pursuant to any of the foregoing or pursuant to Section 5.9.

 

“Senior Subordinated
Note Indenture” shall mean the Indenture entered into by the Borrower and
certain of the Subsidiary Guarantors in connection with the issuance of the
Senior Subordinated Notes, together with all instruments and other agreements
entered into by the Borrower or such Subsidiary Guarantor in connection
therewith.

 

“Senior Subordinated
Notes” shall mean (a) the 8 3⁄4% subordinated notes of the Borrower issued on
or about the Closing Date pursuant to the Senior Subordinated Note Indenture,
together with any exchange notes or any replacement notes issued under the
Senior Subordinated Note Indenture and (b) additional subordinated notes of the
Borrower issued after the Closing Date pursuant to the Senior Subordinated Note
Indenture to the extent permitted under Section 6.1.

 

“Specified Hedging
Agreement” shall mean any Hedging Agreement entered into by the Borrower
and any Lender or affiliate thereof in respect of interest rates.

 

“Sponsor” shall
mean Warburg Pincus Private Equity VIII, L.P., Warburg Pincus International
Partners, L.P. and their respective Affiliates.

 

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

 

“Subsidiary” shall
mean any subsidiary of the Borrower.

 

“Subsidiary Guarantor”
shall mean each Subsidiary listed on Schedule 1.1(a), and each other
Subsidiary that is or becomes a party to the Guarantee and Collateral
Agreement.

 

 

24

 

“Swingline Commitment”
shall mean the commitment of the Swingline Lender to make loans pursuant to
Section 2.21, as the same may be reduced from time to time pursuant to Section 2.9
or Section 2.21.

 

“Swingline Exposure”
shall mean at any time the aggregate principal amount at such time of all
outstanding Swingline Loans.  The Swingline Exposure of any Revolving
Credit Lender at any time shall equal its Pro Rata Percentage of the aggregate
Swingline Exposure at such time.

 

“Swingline Lender”
shall mean JPMorgan Chase Bank, in its capacity as lender of Swingline Loans
hereunder.

 

“Swingline Loan”
shall mean any loan made by the Swingline Lender pursuant to Section 2.21.

 

“Syndication Agent”
shall have the meaning assigned to such term in the preamble hereto.

 

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

 

“Synthetic Lease
Obligations” shall mean, as to any person, an amount equal to the sum of
(a) the obligations of such person to pay rent or other amounts under any
Synthetic Lease which are attributable to principal and, without duplication, (b)
the amount of any purchase price payment under any Synthetic Lease assuming the
lessee exercises the option to purchase the leased property at the end of the
lease term.

 

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

 

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

 

“Tax Payments”
shall mean net payments in cash by the Borrower (or by Holdings or Parent on
behalf of the Borrower) to Holdings in respect of Taxes pursuant to the Tax
Sharing Agreement.

 

“Tax Sharing Agreement”
shall mean the Tax Sharing Agreement dated as of the Closing Date among
Holdings, Parent, the Borrower and certain Subsidiaries.

 

“Term Loan Commitment”
shall mean, with respect to any Lender, such Lender’s (a) US$ Term Loan
Commitment, (b) Euro Term Loan Commitment and (c) Incremental Term Loan
Commitment.

 

“Term Loan Maturity
Date” shall mean November 12, 2011.

 

 

25

 

“Term Loans” shall
mean the term loans made by the Lenders to the Borrower pursuant to clauses (i)
and (ii) of Section 2.1(a).  Unless the context shall otherwise
require, the term “Term Loans” shall include Incremental Term Loans.

 

“Total Enterprise
Value” shall mean the sum of (a) the Holdings Equity Contribution and (b)
the aggregate principal amount of Funded Debt of the Borrower as of the Closing
Date (after giving effect to the Transactions).

 

“Total Revolving
Credit Commitment” shall mean, at any time, the aggregate amount of the
Revolving Credit Commitments, as in effect at such time. The initial Total
Revolving Credit Commitment is $90,000,000.

 

“Trading With the
Enemy Act” shall have the meaning assigned to such term in
Section 3.26.

 

“Transactions”
shall mean, collectively, (a) the execution, delivery and performance by
Holdings and the Borrower of the Acquisition Agreement and the consummation of
the Acquisition, (b) the execution, delivery and performance by the Loan
Parties of the Loan Documents to which they are a party and, in the case of the
Borrower, the making of the initial Borrowings hereunder, (c) the execution,
delivery and performance by the Loan Parties of the Senior Subordinated Note
Indenture and related documents to which they are a party and, in the case of
the Borrower, the issuance of the Senior Subordinated Notes, (d) the repayment
of all amounts outstanding or due under, and the termination of, the Existing
Credit Agreement, (e) the Holdings Equity Contribution and (e) the payment of
related fees and expenses.

 

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

 

“Uniform Customs”
shall have the meaning assigned to such term in Section 9.7.

 

“US$ Term Loan”
shall have the meaning assigned to such term in Section 2.1.

 

“US$ Term Loan
Borrowing” shall mean a Borrowing comprised of US$ Term Loans.

 

“US$ Term Loan
Commitment” shall mean, with respect to each Lender, the commitment of such
Lender to make US$ Term Loans hereunder as set forth on Schedule 2.1, or
in the Assignment and Assumption pursuant to which such Lender assumed its US$
Term Loan Commitment, as applicable, as the same may be (i) reduced from time
to time pursuant to Section 2.9 and (ii) reduced or increased from time to
time pursuant to assignments by or to such Lender pursuant to
Section 9.4.  The original aggregate amount of the US$ Term Loan
Commitments is $370,000,000.

 

“US$ Term Percentage”: 
as to any Lender at any time, the percentage which such Lender’s US$ Term Loan
Commitment then constitutes of the aggregate US$ Term Loan Commitments (or, at
any time after the Closing Date, the percentage which the principal amount of
such Lender’s US$ Term Loan then outstanding constitutes of the aggregate
principal amount of the US$ Term Loans then outstanding).

 

“wholly owned
Subsidiary” of any person shall mean a subsidiary of such person of which
securities (except for directors’ qualifying shares and other de minimis
ownership interests required to be owned under foreign law by local residents)
or other ownership interests representing 100% of the Equity Interests are, at
the time any determination is being made, owned, controlled or held by such
person or

 

 

26

 

one or more wholly owned Subsidiaries of such person
or by such person and one or more wholly owned Subsidiaries of such person.

 

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

 

              
SECTION 1.2.  Terms Generally. 
The definitions in Section 1.1 shall apply equally to both the singular
and plural forms of the terms defined.  Whenever the context may require,
any pronoun shall include the corresponding masculine, feminine and neuter
forms.  The words “include”, “includes” and “including” shall be deemed to
be followed by the phrase “without limitation”.  The word “will” shall be
construed to have the same meaning and effect as the word “shall”; and the
words “asset” and “property” shall be construed as having the same meaning and
effect and to refer to any and all tangible and intangible assets and
properties, including cash, securities, accounts and contract rights.  All
references herein to Articles, Sections, Exhibits and Schedules shall be deemed
references to Articles and Sections of, and Exhibits and Schedules to, this
Agreement unless the context shall otherwise require.  Except as otherwise
expressly provided herein, (a) any reference in this Agreement to any Loan
Document shall mean such document as amended, restated, supplemented or
otherwise modified from time to time and (b) all terms of an accounting or
financial nature shall be construed in accordance with GAAP, as in effect from
time to time; provided, however, that if, before or after any change in GAAP
occurs, the Borrower notifies the Administrative Agent that the Borrower wishes
to amend any covenant in Article VI or any related definition to eliminate
the effect of any such change in GAAP occurring after the date of this
Agreement on the operation of such covenant (or if the Administrative Agent
notifies the Borrower that the Required Lenders wish to amend Article VI
or any related definition for such purpose), then the Borrower’s compliance
with such covenant (and the computations made for purposes of determining the
Applicable Percentage) shall be determined on the basis of GAAP in effect
immediately before the relevant change in GAAP became effective, until either
such notice is withdrawn or such covenant is amended in a manner satisfactory
to the Borrower and the Required Lenders.

 

               
SECTION 1.3.  Pro Forma Calculations.
 With respect to any period during which any Permitted Acquisition, the
buyout of the Exide Lease or Asset Sale occurs as permitted pursuant to the
terms hereof, the Leverage Ratio and the Interest Coverage Ratio shall be
calculated with respect to such period and such Permitted Acquisition or Asset
Sale on a Pro Forma Basis.

 

               
SECTION 1.4.  Classification of
Loans and Borrowings.  For purposes of this Agreement, Loans
may be classified and referred to by Class (e.g., a “Revolving Loan”) or
by Type (e.g., a “Eurodollar Loan”) or by Class and Type (e.g., a “Eurodollar
Revolving Loan”).  Borrowings also may be classified and referred to
by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar
Borrowing”) or by Class and Type (e.g., a “Eurodollar Revolving
Borrowing”).

 

               
SECTION 1.5.  Exchange Rates. 
(a)  Not later than 1:00 P.M., Local Time, on each Calculation Date, the
Administrative Agent shall (i) determine the Exchange Rate as of such
Calculation Date for each Alternative Currency in which a Loan is then
outstanding and (ii) give notice thereof to the Borrower.  The Exchange
Rates so determined shall become effective on the first Business Day
immediately following the relevant Calculation Date (a “Reset Date”) and
shall remain effective until the next succeeding Reset Date.

 

(b)  Not later than
2:00 P.M., Local Time, on each Reset Date with respect to the Revolving
Facility, the Administrative Agent shall (i) determine the aggregate amount of
Revolving Credit Exposure on such date (after giving effect to any
Multicurrency Revolving Loans to be made in connection with such determination)
and (ii) notify the Borrower of such determination.

 

 

27

 

               
SECTION 1.6.  Currency Equivalents
Generally.  Any amount specified in this Agreement (other
than in Articles 2, 8 and 9) or any of the other Loan Documents to be in
Dollars shall also include the equivalent of such amount in any currency other
than Dollars, such equivalent amount to be determined at the rate of exchange
quoted by JPMorgan Chase Bank in New York, New York at the close of business on
the Business Day immediately preceding any date of determination thereof, to
prime banks in New York, New York for the spot purchase in the New York foreign
exchange market of such amount in Dollars with such other currency; provided
that the determination of any Dollar Equivalent shall be made in accordance
with the definition of “Dollar Equivalent”.  The maximum amount of
Indebtedness, investments and other threshold amounts that Holdings, the
Borrower and the Subsidiaries may incur under Article VI shall not be
deemed to be exceeded, with respect to any outstanding Indebtedness,
investments and other threshold amounts solely as a result of fluctuations in
the exchange rate of currencies.  When calculating capacity for the
incurrence of additional Indebtedness, investments and other threshold amounts
by Holdings, the Borrower and any Subsdiary, the exchange rate of currencies
shall be measured as of the date of such calculation.

 

ARTICLE II

 

The Credits

 

               
SECTION 2.1.  Commitments. 
(a)  Subject to the terms and conditions and relying upon the
representations and warranties herein set forth, each Lender agrees, severally
and not jointly, (i) to make a term loan to the Borrower in Dollars (a “US$
Term Loan”) on the Closing Date in a principal amount not to exceed its US$
Term Loan Commitment, (ii) to make a term loan to the Borrower in Euros (a “Euro
Term Loan”) on the Closing Date in a principal amount not to exceed its
Euro Term Loan Commitment and (iii) to make Revolving Loans to the Borrower in
Dollars or in an Alternative Currency, at any time and from time to time on or
after the date hereof, and until the earlier of the Revolving Credit Maturity
Date and the termination of the Revolving Credit Commitment of such Lender in
accordance with the terms hereof, in an aggregate principal amount at any time
outstanding that will not result in (a) such Lender’s Revolving Credit Exposure
exceeding such Lender’s Revolving Credit Commitment or (b) the Aggregate
Alternative Currency Exposure of all Lenders exceeding the Alternative Currency
Sublimit.  Within the limits set forth in clause (iii) of the preceding
sentence and subject to the terms, conditions and limitations set forth herein,
the Borrower may borrow, pay or prepay and reborrow Revolving Loans. 
Amounts paid or prepaid in respect of Term Loans may not be reborrowed.

 

(b)          
Incremental Term Loans.  Each Lender having an Incremental Term
Loan Commitment hereby agrees, severally and not jointly, on the terms and
subject to the conditions set forth herein and in the applicable Incremental
Term Loan Assumption Agreement and in reliance on the representations and
warranties set forth herein and in the other Loan documents, to make
Incremental Term Loans to the Borrower, in an aggregate principal amount not to
exceed its Incremental Term Loan Commitment.  Amounts paid or prepaid in
respect of Incremental Term Loans may not be reborrowed.

 

               
SECTION 2.2.  Loans. 
(a)  Each Loan (other than Swingline Loans) shall be made as part of a
Borrowing consisting of Loans made by the Lenders ratably in accordance with
their applicable Commitments; provided, however, that the failure
of any Lender to make any Loan shall not in itself relieve any other Lender of
its obligation to lend hereunder (it being understood, however, that no Lender
shall be responsible for the failure of any other Lender to make any Loan
required to be made by such other Lender).  Except for Swingline Loans and
Loans deemed made pursuant to Section 2.2(f), the Loans comprising any Borrowing
shall be in an aggregate principal amount that is (i) (A) in the case of a
Revolving Borrowing denominated in US Dollars, an integral multiple of
$1,000,000 and not less than $1,000,000, (B) in the case of a Revolving
Borrowing denominated in Euros, an integral multiple of €1,000,000 and not less
than €1,000,000, (C) in the case of a US$ Term Loan Borrowing or an

 

 

28

 

Incremental Term Loan Borrowing, an integral multiple
of $1,000,000 and not less than $5,000,000 (except with respect to any
Incremental Term Loan Borrowing, to the extent otherwise provided in the
related Incremental Term Loan Assumption Agreement) and (D) in the case of a
Euro Term Loan Borrowing, an integral multiple of €1,000,000 and not less than
€5,000,000 or (ii) in the case of any Borrowing, equal to the remaining
available balance of the applicable Commitments.

 

(b)          
Subject to Section 2.8, each Borrowing shall be comprised entirely of
Eurodollar Loans or, with respect to Term Loans or Revolving Loans denominated
in Dollars, ABR Loans, as the Borrower may request pursuant to
Section 2.3.  Each Lender may at its option make any Eurodollar Loan
by causing any domestic or foreign branch or Affiliate of such Lender to make
such Loan; provided, that any exercise of such option shall not affect
the obligation of the Borrower to repay such Loan in accordance with the terms
of this Agreement.  Borrowings of more than one Type may be outstanding at
the same time; provided, however, that the Borrower shall not be
entitled to request any Borrowing that, if made, would result in more than ten
(10) Eurodollar Borrowings outstanding hereunder at any time.  For
purposes of the foregoing, Borrowings having different Interest Periods,
regardless of whether they commence on the same date, shall be considered
separate Borrowings.

 

(c)          
Except with respect to Swingline Loans and Loans made pursuant to
Section 2.2(f), each Lender shall make each Loan to be made by it
hereunder on the proposed date thereof by wire transfer of immediately
available funds to the Funding Office not later than 12:00 (noon), Local Time,
and the Administrative Agent shall promptly transfer the amounts so received to
the account designated by the Borrower in the applicable Borrowing Request or,
if a Borrowing shall not occur on such date because any condition precedent
herein specified shall not have been met, return the amounts so received to the
respective Lenders.

 

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

 

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

 

(f)           
If the Issuing Bank shall not have received from the Borrower the payment
required to be made by Section 2.22(e) within the time specified in such
Section, the Issuing Bank will promptly notify the Administrative Agent of the
L/C Disbursement and the Administrative Agent will promptly notify each Revolving
Credit Lender of such L/C Disbursement and its Pro Rata Percentage
thereof.  Each Revolving Credit Lender shall pay by wire transfer of
immediately available funds to the Administrative

 

 

29

 

Agent not later than 2:00 p.m., New York City time, on
such date (or, if such Revolving Credit Lender shall have received such notice
later than 12:00 (noon), New York City time, on any day, not later than 10:00
a.m., New York City time, on the immediately following Business Day), an amount
equal to such Lender’s Pro Rata Percentage of such L/C Disbursement (it being
understood that such amount shall be deemed to constitute an ABR Revolving Loan
of such Lender and such payment shall be deemed to have reduced the L/C
Exposure), and the Administrative Agent will promptly pay to the Issuing Bank
amounts so received by it from the Revolving Credit Lenders.  The
Administrative Agent will promptly pay to the Issuing Bank any amounts received
by it from the Borrower pursuant to Section 2.22(e) prior to the time that
any Revolving Credit Lender makes any payment pursuant to this paragraph (f);
any such amounts received by the Administrative Agent thereafter will be
promptly remitted by the Administrative Agent to the Revolving Credit Lenders
that shall have made such payments and to the Issuing Bank, as their interests
may appear.  If any Revolving Credit Lender shall not have made its Pro
Rata Percentage of such L/C Disbursement available to the Administrative Agent
as provided above, such Lender and the Borrower severally agree to pay interest
on such amount, for each day from and including the date such amount is
required to be paid in accordance with this paragraph to but excluding the date
such amount is paid, to the Administrative Agent for the account of the Issuing
Bank at (i) in the case of the Borrower, a rate per annum equal to the interest
rate applicable to Revolving Loans pursuant to Section 2.6(a), and (ii) in
the case of such Lender, for the first such day, the Federal Funds Effective
Rate, and for each day thereafter, the Alternate Base Rate.

 

               
SECTION 2.3.  Borrowing Procedure. 
In order to request a Borrowing (other than a Swingline Loan or a deemed
Borrowing pursuant to Section 2.2(f), as to which this Section 2.3
shall not apply), the Borrower shall hand deliver or fax to the Administrative
Agent (or give telephonic notice promptly confirmed by written notice) a duly
completed Borrowing Request (a) in the case of a Eurodollar Borrowing, not
later than 12:00 (noon), Local Time, three Business Days before a proposed
Borrowing, and (b) in the case of an ABR Borrowing, not later than 12:00
(noon), New York City time, one Business Day before a proposed Borrowing. 
Each Borrowing Request shall be irrevocable, shall be signed by or on behalf of
the Borrower and shall specify the following information: (i) whether the
Borrowing then being requested is to be a US$ Term Loan Borrowing, a Euro Term
Loan Borrowing, an Incremental Term Loan Borrowing or a Revolving Credit
Borrowing, whether such Borrowing is denominated in Dollars or an Alternative
Currency, and whether such Borrowing is to be a Eurodollar Borrowing or an ABR
Borrowing (provided, that until the Administrative Agent shall have
notified the Borrower that the primary syndication of the Commitment has been
completed (which notice shall be given as promptly as practicable and, in any
event, within 7 days after the Closing Date), the Borrower shall not be
permitted to request a Eurodollar Borrowing for any Loans denominated in US
Dollars); (ii) the date of such Borrowing (which shall be a Business Day);
(iii) the number and location of the account to which funds are to be
disbursed; (iv) the amount of such Borrowing; and (v) if such Borrowing is to
be a Eurodollar Borrowing, the Interest Period with respect thereto; provided,
however, that, notwithstanding any contrary specification in any
Borrowing Request, each requested Borrowing shall comply with the requirements
set forth in Section 2.2.  If no election as to the Type of Borrowing
is specified in any such notice, then (a) if such Borrowing is denominated in
US Dollars, the requested Borrowing shall be an ABR Borrowing and (b) if such
Borrowing is denominated in an Alternative Currency, the requested Borrowing
shall be a Eurodollar Borrowing.  If no Interest Period with respect to
any Eurodollar Borrowing is specified in any such notice, then the Borrower
shall be deemed to have selected an Interest Period of one month’s
duration.  The Administrative Agent shall promptly advise the applicable
Lenders of any notice given pursuant to this Section 2.3 (and the contents
thereof), and of each Lender’s portion of the requested Borrowing.

 

               
SECTION 2.4.  Evidence of Debt;
Repayment of Loans.  (a)  The Borrower hereby
unconditionally promises to pay to each Lender, through the Administrative
Agent, (i) the principal amount of each Term Loan of such Lender as provided in
Section 2.11 and (ii) the then unpaid principal amount of each Revolving

 

 

30

 

Loan of such Lender on the Revolving Credit Maturity
Date.  The Borrower hereby promises to pay to the Swingline Lender the
then unpaid principal amount of each Swingline Loan on the Revolving Credit
Maturity Date.

 

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

 

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

 

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

 

(e)          
Any Lender may request that Loans made by it hereunder be evidenced by a
promissory note.  In such event, the Borrower shall execute and deliver to
such Lender a promissory note payable to such Lender and its registered assigns
and in a form and substance reasonably acceptable to the Administrative Agent
and the Borrower. Notwithstanding any other provision of this Agreement, in the
event any Lender shall request and receive such a promissory note, the
interests represented by such note shall at all times (including after any
assignment of all or part of such interests pursuant to Section 9.4) be
represented by one or more promissory notes payable to the payee named therein
or its registered assigns.

 

               
SECTION 2.5.  Fees. 
(a)  The Borrower agrees to pay to each Lender, through the Administrative
Agent, on the last Business Day of March, June, September and
December in each year and on each date on which any Commitment of such
Lender shall expire or be terminated as provided herein, a commitment fee (a “Commitment
Fee”) equal to 0.50% per annum on the daily unused amount of the
Commitments of such Lender (other than the Swingline Commitment) during the
preceding quarter (or other period commencing with the date hereof or ending
with the Revolving Credit Maturity Date or the date on which the Commitments of
such Lender shall expire or be terminated); provided that any commitment
fee accrued with respect to any of the Commitments of a Defaulting Lender
during the period prior to the time such Lender became a Defaulting Lender and
unpaid at such time shall not be payable by the Borrower so long as such Lender
shall be a Defaulting Lender except to the extent that such commitment fee
shall otherwise have been due and payable by the Borrower prior to such time;
and provided, further that no commitment fee shall accrue on any
of the Commitments of a Defaulting Lender so long as such Lender shall be a
Defaulting Lender.  All Commitment Fees shall be computed on the basis of
the actual number of days elapsed in a year of 360 days.  The Commitment
Fee due to each Lender shall commence to accrue on the date hereof and shall
cease to accrue on the date on which the Commitment of such Lender shall expire
or be terminated as provided herein.  For purposes of calculating
Commitment Fees only, no portion of the Revolving Credit Commitments shall be
deemed utilized as a result of outstanding Swingline Loans.

 

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

 

31

 

 

(c)          
The Borrower agrees to pay (i) to each Revolving Credit Lender, through the
Administrative Agent, on each Fee Payment Date a fee (an “L/C Participation
Fee”) calculated on such Lender’s Pro Rata Percentage of the daily
aggregate L/C Exposure (excluding the portion thereof attributable to unreimbursed
L/C Disbursements) during the preceding quarter (or shorter period commencing
with the date hereof or ending with the Revolving Credit Maturity Date or the
date on which all Letters of Credit have been canceled or have expired and the
Revolving Credit Commitments of all Lenders shall have been terminated) at a
rate per annum equal to the Applicable Percentage from time to time used to
determine the interest rate on Revolving Credit Borrowings comprised of
Eurodollar Loans pursuant to Section 2.6, and (ii) to the Issuing Bank,
for its own account, a fronting fee of 0.25% per annum on the undrawn and
unexpired amount of each Letter of Credit, payable quarterly in arrears on each
Fee Payment Date after the issuance date (the “Issuing Bank Fees”). 
All L/C Participation Fees and Issuing Bank Fees shall be computed on the basis
of the actual number of days elapsed in a year of 360 days.

 

(d)          
All Fees shall be paid in Dollars on the dates due, in immediately available
funds, to the Administrative Agent for distribution, if and as appropriate,
among the Lenders, except that the Issuing Bank Fees shall be paid directly to
the Issuing Bank.  Once paid, none of the Fees shall be refundable under
any circumstances.

 

               
SECTION 2.6.  Interest on Loans. 
(a)  Subject to the provisions of Section 2.7, the Loans comprising
each ABR Borrowing, including each Swingline Loan, shall bear interest
(computed on the basis of the actual number of days elapsed over a year of 365
or 366 days, as the case may be, when the Alternate Base Rate is determined by
reference to the Prime Rate and over a year of 360 days at all other times and
calculated from and including the date of such Borrowing to but excluding the
date of repayment thereof) at a rate per annum equal to the Alternate Base Rate
plus the Applicable Percentage in effect from time to time.

 

(b)          
Subject to the provisions of Section 2.7, the Loans comprising each
Eurodollar Borrowing shall bear interest (computed on the basis of the actual
number of days elapsed over a year of 360 days) at a rate per annum equal to
the Eurodollar Rate for the Interest Period in effect for such Borrowing plus
the Applicable Percentage in effect from time to time.

 

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

 

               
SECTION 2.7.  Default Interest. 
Any amount (whether of principal, interest, Fees or otherwise) not paid when
due hereunder or under any other Loan Document shall bear interest, to the
extent permitted by law (after as well as before judgment), payable on demand,
(a) in the case of principal, at the rate otherwise applicable thereto pursuant
to Section 2.6 plus 2.00% per annum and (b) in all other cases, at a rate
per annum (computed on the basis of the actual number of days elapsed over a
year of 365 or 366 days, as the case may be, when determined by reference to
the Prime Rate and over a year of 360 days at all other times) equal to the
rate that would be applicable to an ABR Term Loan plus 2.00% per annum.

 

               
SECTION 2.8.  Alternate Rate of
Interest.  In the event, and on each occasion, that on the
day two Business Days prior to the commencement of any Interest Period for a
Eurodollar Borrowing the Administrative Agent shall have determined that dollar
deposits in the principal amounts of the Loans comprising such Borrowing are
not generally available in the London interbank market, or that the rates at
which such dollar deposits are being offered will not adequately and fairly
reflect the cost to a majority in interest of the Lenders participating or to
participate in such Loan of making or maintaining its Eurodollar Loan

 

 

32

 

during such Interest Period, or that reasonable means
do not exist for ascertaining the Eurodollar Rate, the Administrative Agent
shall, as soon as practicable thereafter, give written or fax notice of such
determination to the Borrower and the Lenders.  In the event of any such
determination, until the Administrative Agent shall have advised the Borrower
and the Lenders that the circumstances giving rise to such notice no longer exist,
any request by the Borrower for a Eurodollar Borrowing pursuant to
Section 2.3 or 2.10 shall be deemed to be a request for an ABR
Borrowing.  Each determination by the Administrative Agent under this
Section 2.8 shall be conclusive absent manifest error.

 

               
SECTION 2.9.  Termination and
Reduction of Commitments.  (a)  The US$ Term Loan
Commitments and the Euro Term Loan Commitments shall automatically terminate at
5:00 p.m., New York City time, on the Closing Date. The Revolving Credit Commitments,
the Swingline Commitment and the L/C Commitment shall automatically terminate
on the Revolving Credit Maturity Date.  Notwithstanding the foregoing, all
the Commitments shall automatically terminate at 5:00 p.m., New York City time,
on June 30, 2004, if the initial Credit Event shall not have occurred by
such time.

 

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

 

(c)          
Each reduction in the Term Loan Commitments or the Revolving Credit Commitments
hereunder shall be made ratably among the Lenders in accordance with their
respective applicable Commitments.  The Borrower shall pay to the
Administrative Agent for the account of the applicable Lenders, on the date of
termination of the Commitments of any Class, all accrued and unpaid Commitment
Fees relating to such Class to but excluding the date of such termination.

 

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

 

(i)   until the Administrative Agent shall
have notified the Borrower that the primary syndication of the Commitments has
been completed (which notice shall be given as promptly as practicable and, in
any event, within seven (7) days after the Closing Date), no ABR Borrowing may
be converted into a Eurodollar Borrowing; provided, that after such
seven-day (or shorter) period, each ABR Borrowing converted to a Eurodollar
Borrowing shall have an initial Interest Period of thirty (30) days;

 

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

 

 

33

 

(iii)   if less than all the outstanding
principal amount of any Borrowing shall be converted or continued, then each
resulting Borrowing shall satisfy the limitations specified in Sections 2.2(a)
and 2.2(b) regarding the principal amount and maximum number of Borrowings of
the relevant Type;

 

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

 

(v)   if any Eurodollar Borrowing is
converted at a time other than the end of the Interest Period applicable
thereto, the Borrower shall pay, upon demand, any amounts due to the Lenders
pursuant to Section 2.15; and

 

(vi)   after the occurrence and during the
continuance of a Default specified in clause (b) or (c) of Article VII
(without regard to any applicable grace period in such clause (c)), no
outstanding Loan denominated in Dollars may be converted into, or continued as,
a Eurodollar Loan.

 

Each notice pursuant to
this Section 2.10 shall be irrevocable and shall refer to this Agreement
and specify (i) the identity, currency denomination and amount of the Borrowing
that the Borrower requests be converted or continued, (ii) whether such
Borrowing is to be converted to or continued as a Eurodollar Borrowing or an
ABR Borrowing, (iii) if such notice requests a conversion, the date of such
conversion (which shall be a Business Day) and (iv) if such Borrowing is to be
converted to or continued as a Eurodollar Borrowing, the Interest Period with
respect thereto.  If no Interest Period is specified in any such notice
with respect to any conversion to or continuation as a Eurodollar Borrowing,
the Borrower shall be deemed to have selected an Interest Period of one month’s
duration.  The Administrative Agent shall advise the Lenders of any notice
given pursuant to this Section 2.10 and of each Lender’s portion of any
converted or continued Borrowing.  If the Borrower shall not have given notice
in accordance with this Section 2.10 to continue any Eurodollar Borrowing
into a subsequent Interest Period (and shall not otherwise have given notice in
accordance with this Section 2.10 to convert such Borrowing), such
Borrowing shall, at the end of the Interest Period applicable thereto (unless
repaid pursuant to the terms hereof), automatically be converted into an ABR
Borrowing.

 

               
SECTION 2.11.  Repayment of Term
Loan Borrowings.  (a)  The Borrower shall pay to the
applicable Lenders, through the Administrative Agent, on the dates set forth
below, or if any such date is not a Business Day, on the next preceding
Business Day (each such date being called a “Repayment Date”), a
principal amount of the US$ Term Loans and Euro Term Loans (as adjusted from
time to time pursuant to Sections 2.11(c), 2.12, 2.13(e) and 2.23(d)) equal to
such Lender’s US$ Term Percentage or Euro Term Percentage, as the case may be,
multiplied by a percentage of the original aggregate principal amount of the US$
Term Loans or the Euro Term Loans, as applicable, as set forth below (together
in each case with accrued and unpaid interest on the principal amount to be
paid to but excluding the date of such payment):

 

	
  Repayment
  Date

  	
   

  	
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  October 2, 2004

  	
   

  	
  0.25

  	
  %

  
	
  January 1, 2005

  	
   

  	
  0.25

  	
  %

  
	
  April 2, 2005

  	
   

  	
  0.25

  	
  %

  
	
  July 2, 2005

  	
   

  	
  0.25

  	
  %

  
	
  October 1, 2005

  	
   

  	
  0.25

  	
  %

  

 

 

34

 

	
  December 31, 2005

  	
   

  	
  0.25

  	
  %

  
	
  April 1, 2006

  	
   

  	
  0.25

  	
  %

  
	
  July 1, 2006

  	
   

  	
  0.25

  	
  %

  
	
  September 30, 2006

  	
   

  	
  0.25

  	
  %

  
	
  December 30, 2006

  	
   

  	
  0.25

  	
  %

  
	
  March 31, 2007

  	
   

  	
  0.25

  	
  %

  
	
  June 30, 2007

  	
   

  	
  0.25

  	
  %

  
	
  September 29, 2007

  	
   

  	
  0.25

  	
  %

  
	
  December 29, 2007

  	
   

  	
  0.25

  	
  %

  
	
  March 29, 2008

  	
   

  	
  0.25

  	
  %

  
	
  June 28, 2008

  	
   

  	
  0.25

  	
  %

  
	
  September 27, 2008

  	
   

  	
  0.25

  	
  %

  
	
  January 3, 2009

  	
   

  	
  0.25

  	
  %

  
	
  April 4, 2009

  	
   

  	
  0.25

  	
  %

  
	
  June 27, 2009

  	
   

  	
  0.25

  	
  %

  
	
  October 3, 2009

  	
   

  	
  0.25

  	
  %

  
	
  January 2, 2010

  	
   

  	
  0.25

  	
  %

  
	
  April 3, 2010

  	
   

  	
  0.25

  	
  %

  
	
  July 3, 2010

  	
   

  	
  0.25

  	
  %

  
	
  October 2, 2010

  	
   

  	
  0.25

  	
  %

  
	
  January 1, 2011

  	
   

  	
  0.25

  	
  %

  
	
  April 2, 2011

  	
   

  	
  0.25

  	
  %

  
	
  July 2, 2011

  	
   

  	
  0.25

  	
  %

  
	
  October 1, 2011

  	
   

  	
  0.25

  	
  %

  
	
  Term Loan Maturity Date

  	
   

  	
  92.75

  	
  %

  

 

(b)          
The Borrower shall pay to the Administrative Agent, for the account of the
Lenders, on each Incremental Term Loan Repayment Date, a principal amount of
the Other Term Loans (as adjusted from time to time pursuant to Sections
2.11(c), 2.12 and 2.13(e)) equal to the amount set forth for such date in the
applicable Incremental Term Loan Assumption Agreement, together in each case
with accrued and unpaid interest on the principal amount to be paid to but
excluding the date of such payment.

 

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

 

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

 

(e)          
All repayments pursuant to this Section 2.11 shall be subject to
Section 2.15, but shall otherwise be without premium or penalty.

 

               
SECTION 2.12.  Optional Prepayments. 
(a)  The Borrower shall have the right at any time and from time to time
to prepay any Borrowing, in whole or in part, upon at least three Business
Days’ prior written or fax notice (or telephonic notice promptly confirmed by
written notice) in the case of Eurodollar Loans, or written or fax notice (or
telephonic notice promptly confirmed by written notice) at least one Business
Day prior to the date of prepayment in the case of ABR Loans, to the
Administrative Agent before 12:00 (noon), Local Time; provided, however,
that (i) each partial prepayment of Loans denominated in Dollars

 

 

35

 

shall be in an amount that is an integral multiple of
$100,000 and not less than $500,000 and (ii) each partial prepayment of Loans
denominated in Euros shall be in an amount that is an integral multiple of
€100,000 and not less than €500,000.

 

(b)          
Optional prepayments of Term Loans shall be allocated ratably between the Term
Loans and the Other Term Loans, if any, and shall be applied first, in
chronological order to the installments of principal in respect of the Term
Loans and Other Term Loans scheduled to be paid within 12 months after such
optional prepayment and second, pro rata against the remaining scheduled
installments of principal due in respect of the Term Loans and Other Term
Loans.

 

(c)          
Each notice of prepayment shall specify the prepayment date and the principal
amount and currency denomination of each Borrowing (or portion thereof) to be
prepaid, shall be irrevocable and shall commit the Borrower to prepay such
Borrowing by the amount stated therein on the date stated therein.  All
prepayments under this Section 2.12 shall be subject to Section 2.15
but otherwise without premium or penalty.  All prepayments under this
Section 2.12 shall be accompanied by accrued and unpaid interest on the
principal amount to be prepaid to but excluding the date of payment; provided,
however, that in the case of a prepayment of an ABR Revolving Loan or a
Swingline Loan that is not made in connection with a termination of the
Revolving Credit Commitments, the accrued and unpaid interest on the principal
amount prepaid shall be payable on the next scheduled Interest Payment Date
with respect to such ABR Revolving Loan or Swingline Loan.

 

               
SECTION 2.13.  Mandatory Prepayments. 
(a)  In the event of any termination of all the Revolving Credit
Commitments, the Borrower shall, on the date of such termination, repay or
prepay all its outstanding Revolving Credit Borrowings and all outstanding
Swingline Loans and replace all outstanding Letters of Credit. If as a result
of any partial reduction of the Revolving Credit Commitments the Aggregate
Revolving Credit Exposure would exceed the Total Revolving Credit Commitment
after giving effect thereto, then the Borrower shall, on the date of such
reduction, repay or prepay Revolving Credit Borrowings or Swingline Loans (or a
combination thereof) and/or replace outstanding Letters of Credit in an amount
sufficient to eliminate such excess.

 

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

 

(c)          
No later than the earlier of (i) 90 days after the end of each fiscal year of
the Borrower, commencing with the fiscal year ending on December 31, 2005,
and (ii) the date on which the financial statements with respect to such period
are delivered pursuant to Section 5.4(a), the Borrower shall prepay
outstanding Term Loans in accordance with Section 2.13(e) in an aggregate
principal amount equal to 50% of Excess Cash Flow for the fiscal year then
ended; provided, however, that in the event the Leverage Ratio at the end of such
fiscal year was equal to or less than 3.75 to 1.00 and greater than 3.25 to
1.00, then such amount shall be reduced to 25% of such Excess Cash Flow and in
the event the Leverage Ratio at the end of such fiscal year was equal to or
less than 3.25 to 1.00, no such prepayment shall be required.

 

(d)          
In the event that any Loan Party or any subsidiary of a Loan Party shall
receive Net Cash Proceeds from the issuance or other disposition of Indebtedness
for money borrowed (or similar transaction evidenced by bonds, debentures,
notes or similar instruments) of any Loan Party or any subsidiary of a Loan
Party (other than Indebtedness for money borrowed (or similar transaction
evidenced by bonds, debentures, notes or similar instruments) permitted
pursuant to Section 6.1, except for Indebtedness incurred under (i) the
proviso to Section 6.1(g)(i) to the extent the proceeds thereof are not
applied to finance the cash consideration payable in a Permitted Acquisition
(including the refinancing of 

 

 

36

 

Indebtedness of the Acquired Entity
and the payment of related fees and expenses) or (ii) Section 6.1(j), for
which a mandatory prepayment shall be required), the Borrower shall,
substantially simultaneously with (and in any event not later than the third
Business Day next following) the receipt of such Net Cash Proceeds by such Loan
Party or such subsidiary, apply an amount equal to 100% of such Net Cash Proceeds
to prepay outstanding Term Loans in accordance with Section 2.13(e).

 

(e)          
Mandatory prepayments of outstanding Term Loans under this Agreement shall be
allocated ratably between the Term Loans and the Other Term Loans, if any, and
shall be applied first, in chronological order to the installments of
principal in respect of the Term Loans and Other Term Loans scheduled to be
paid within 12 months after such mandatory prepayment and second, pro
rata against the remaining scheduled installments of principal due in respect
of the Term Loans and Other Term Loans under Section 2.11.

 

(f)           
If, on any Determination Date, the Aggregate Alternative Currency Exposure
exceed 105% of the Alternative Currency Sublimit, the Borrower shall, without
notice or demand, within three Business Days after such Determination Date,
prepay Aternative Currency Loans in an aggregate amount such that, after giving
effect thereto, the Aggregate Alternative Currency Exposure do not exceed the
Alternative Currency Sublimit.

 

(g)          
The Borrower shall deliver to the Administrative Agent, at the time of each
prepayment required under this Section 2.13, (i) a certificate signed by a
Financial Officer of the Borrower setting forth in reasonable detail the calculation
of the amount of such prepayment and (ii) to the extent practicable, at least
three days prior written notice of such prepayment.  Each notice of
prepayment shall specify the prepayment date, the Type of each Loan being
prepaid and the principal amount of each Loan (or portion thereof) to be
prepaid.  All prepayments of Borrowings under this Section 2.13 shall
be subject to Section 2.15, but shall otherwise be without premium or
penalty.

 

               
SECTION 2.14.  Reserve Requirements;
Change in Circumstances.  (a)  Notwithstanding any
other provision of this Agreement, if any Change in Law shall impose, modify or
deem applicable any reserve, special deposit or similar requirement against
assets of, deposits with or for the account of or credit extended by any Lender
or the Issuing Bank (except any such reserve requirement which is reflected in
the Eurodollar Rate) or shall impose on such Lender or the Issuing Bank or the
London interbank market any other condition affecting this Agreement or Eurodollar
Loans 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
or the Issuing Bank of making or maintaining any Eurodollar Loan or increase
the cost to any Lender of issuing or maintaining any Letter of Credit or
purchasing or maintaining a participation therein or to reduce the amount of
any sum received or receivable by such Lender or the Issuing Bank hereunder
(whether of principal, interest or otherwise), in each case, by an amount
deemed by such Lender or the Issuing Bank to be material, then the Borrower
will pay to such Lender or the Issuing Bank, as the case may be, upon demand
such additional amount or amounts as will compensate such Lender or the Issuing
Bank, as the case may be, for such additional costs incurred or reduction
suffered.

 

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

 

 

37

 

be material, then from time to time
the Borrower shall pay to such Lender or the Issuing Bank, as the case may be,
such additional amount or amounts as will compensate such Lender or the Issuing
Bank or such Lender’s or the Issuing Bank’s holding company for any such
reduction suffered.

 

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

 

(d)          
Failure or delay on the part of any Lender or the Issuing Bank to demand
compensation for any increased costs or reduction in amounts received or
receivable or reduction in return on capital shall not constitute a waiver of
such Lender’s or the Issuing Bank’s right to demand such compensation; provided,
that the Borrower shall not be under any obligation to compensate any Lender or
the Issuing Bank under paragraph (a) or (b) above with respect to increased
costs or reductions with respect to any period prior to the date that is 180
days prior to such request if such Lender or the Issuing Bank knew or could
reasonably have been expected to know of the circumstances giving rise to such
increased costs or reductions and of the fact that such circumstances would
result in a claim for increased compensation by reason of such increased costs
or reductions; provided, further,
that the foregoing limitation shall not apply to any increased costs or
reductions arising out of the retroactive application of any Change in Law
within such 180-day period.  The protection of this Section shall be
available to each Lender and the Issuing Bank regardless of any possible
contention of the invalidity or inapplicability of the Change in Law that shall
have occurred or been imposed.

 

               
SECTION 2.15.  Indemnity. 
The Borrower shall indemnify each Lender against any loss or expense that such
Lender may sustain or incur as a consequence of (a) any event, other than a
default by such Lender in the performance of its obligations hereunder, which
results in (i) such Lender receiving or being deemed to receive any amount on
account of the principal of any Eurodollar Loan prior to the end of the
Interest Period in effect therefor, (ii) the conversion of any Eurodollar Loan
to an ABR Loan, or the conversion of the Interest Period with respect to any
Eurodollar Loan, in each case other than on the last day of the Interest Period
in effect therefor, or (iii) any Eurodollar Loan to be made by such Lender
(including any Eurodollar Loan to be made pursuant to a conversion or
continuation under Section 2.10) not being made after notice of such Loan
shall have been given by the Borrower hereunder (any of the events referred to in
this clause (a) being called a “Breakage Event”) or (b) any default in
the making of any payment or prepayment required to be made hereunder.  In
the case of any Breakage Event, such loss shall include an amount equal to the
excess, as reasonably determined by such Lender, of (i) its cost of obtaining
funds for the Eurodollar Loan that is the subject of such Breakage Event for
the period from the date of such Breakage Event to the last day of the Interest
Period in effect (or that would have been in effect) for such Loan over (ii)
the amount of interest likely to be realized by such Lender in redeploying the
funds released or not utilized by reason of such Breakage Event for such
period, but such loss shall not, in any event, include any lost profit or loss
of applicable margin.  A certificate of any Lender setting forth any
amount or amounts which such Lender is entitled to receive pursuant to this
Section 2.15 shall be delivered to the Borrower and shall be conclusive
absent manifest error.

 

               
SECTION 2.16.  Pro Rata Treatment. 
Each Borrowing, each payment or prepayment of principal of any Borrowing, each
payment of interest on the Loans, each payment of the Commitment Fees or the
L/C Participation Fees, each reduction of the Term Loan Commitments or the
Revolving Credit Commitments and each conversion of any Borrowing to or
continuation of any Borrowing as a Borrowing of any Type shall be allocated pro
rata among the Lenders in accordance with their respective applicable
Commitments (or, if such Commitments shall have expired or been terminated, in
accordance with the respective principal amounts of their outstanding Loans or
participations in L/C Disbursements, as

 

 

38

 

applicable).  Each Lender agrees that in
computing such Lender’s portion of any Borrowing to be made hereunder, the
Administrative Agent may, in its discretion, round each Lender’s percentage of
such Borrowing to the next higher or lower whole dollar amount.

 

               
SECTION 2.17.  Sharing of Setoffs. 
Each Lender agrees that if it shall, through the exercise of a right of
banker’s lien, setoff or counterclaim against the Borrower or any other Loan
Party, or pursuant to a secured claim under Section 506 of Title 11 of the
United States Code or other security or interest arising from, or in lieu of,
such secured claim, received by such Lender under any applicable bankruptcy,
insolvency or other similar law or otherwise, or by any other means, obtain
payment (voluntary or involuntary) in respect of any Loan or L/C Disbursement
as a result of which the unpaid portion of its Loans and participations in L/C
Disbursements shall be proportionately less than the unpaid portion of the
Loans and participations in L/C Disbursements of any other Lender, it shall be
deemed simultaneously to have purchased from such other Lender at face value,
and shall promptly pay to such other Lender the purchase price for, a
participation in the Loans and L/C Exposure of such other Lender, so that the
aggregate unpaid amount of the Loans and L/C Exposure and participations in
Loans and L/C Exposure held by each Lender shall be in the same proportion to
the aggregate unpaid amount of all Loans and L/C Exposure then outstanding as
the amount of its Loans and L/C Exposure prior to such exercise of banker’s
lien, setoff or counterclaim or other event was to the amount of all Loans and
L/C Exposure outstanding prior to such exercise of banker’s lien, setoff or
counterclaim or other event; provided, however, that if any such
purchase or purchases or adjustments shall be made pursuant to this
Section 2.17 and the payment giving rise thereto shall thereafter be
recovered, such purchase or purchases or adjustments shall be rescinded to the
extent of such recovery and the purchase price or prices or adjustment restored
without interest.  The Borrower and Holdings expressly consent to the
foregoing arrangements and agree that any Lender holding a participation in a
Loan or L/C Disbursement deemed to have been so purchased may exercise any and
all rights of banker’s lien, setoff or counterclaim with respect to any and all
moneys owing by the Borrower and Holdings to such Lender by reason thereof as
fully as if such Lender had made a Loan directly to the Borrower in the amount
of such participation.

 

               
SECTION 2.18.  Payments. 
(a)  The Borrower shall make each payment (including principal of or
interest on any Borrowing or any L/C Disbursement or any Fees or other amounts)
hereunder and under any other Loan Document not later than 12:00 (noon), Local
Time, on the date when due in Dollars or the relevant Alternative Currency, as
applicable, and in immediately available funds, without setoff, defense or
counterclaim.  Each such payment (other than (i) Issuing Bank Fees, which
shall be paid directly to the Issuing Bank, and (ii) principal of and interest
on Swingline Loans, which shall be paid directly to the Swingline Lender except
as otherwise provided in Section 2.20(e)) shall be made to the Administrative
Agent at the Funding Office, or at such other location as the Administrative
Agent shall notify the Borrower from time to time in accordance with
Section 9.1.  The Administrative Agent shall distribute any such
payments received by it for the account of any other person to the appropriate
recipient promptly following receipt thereof.

 

(b)          
Except as otherwise expressly provided herein, whenever any payment (including
principal of or interest on any Borrowing or any Fees or other amounts) hereunder
or under any other Loan Document shall become due, or otherwise would occur, on
a day that is not a Business Day, such payment may be made on the next
succeeding Business Day, and such extension of time shall in such case be
included in the computation of interest or Fees, if applicable.

 

               
SECTION 2.19.  Taxes. 
(a)  Any and all payments by or on account of any obligation of the
Borrower or any Loan Party hereunder or under any other Loan Document shall be
made free and clear of and without deduction for any Indemnified Taxes or Other
Taxes; provided, that if the Borrower or any Loan Party shall be
required to deduct any Indemnified Taxes or Other Taxes from such payments,
then (i) the sum payable shall be increased as necessary so that after making
all required deductions (including deductions

 

 

39

 

applicable to additional sums payable under this
Section) the Administrative Agent or such Lender (as the case may be) receives
an amount equal to the sum it would have received had no such deductions been
made, (ii) the Borrower or such Loan Party shall make such deductions and (iii)
the Borrower or such Loan Party shall pay the full amount deducted to the
relevant Governmental Authority in accordance with applicable law.

 

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

 

(c)          
The Borrower shall indemnify the Administrative Agent and each Lender, within
10 days after written demand therefor, for the full amount of any Indemnified
Taxes or Other Taxes paid by the Administrative Agent or such Lender, as the
case may be, on or with respect to any payment by or on account of any
obligation of the Borrower or any Loan Party hereunder or under any other Loan
Document (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) and any penalties, interest
and reasonable expenses arising therefrom or with respect thereto (other than
penalties or interest attributable to (i) a failure or delay by the
Administrative Agent or such Lender, as applicable, in making such written
demand to the Borrower or (ii) the gross negligence or willful misconduct of
the Administrative Agent or such Lender, as applicable), 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 by the
Administrative Agent on its behalf or on behalf of a Lender, shall be
conclusive absent manifest error.

 

(d)          
As soon as practicable after any payment of Indemnified Taxes or Other Taxes by
the Borrower or any other Loan Party to a Governmental Authority, the Borrower
shall deliver to the Administrative Agent the original or a certified copy of a
receipt issued by such Governmental Authority evidencing such payment, a copy
of the return reporting such payment or other evidence of such payment
reasonably satisfactory to the Administrative Agent.

 

(e)          
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
located, or any treaty to which such jurisdiction is a party, with respect to
payments under this Agreement shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law, such
properly completed and executed documentation prescribed by applicable law or
reasonably requested by the Borrower as will permit such payments to be made
without withholding or at a reduced rate.

 

               
SECTION 2.20.  Assignment of
Commitments Under Certain Circumstances; Duty to Mitigate. 
(a)  In the event (i) any Lender or the Issuing Bank delivers a
certificate requesting compensation pursuant to Section 2.14, (ii) the
Borrower is required to pay any additional amount to any Lender or the Issuing
Bank or any Governmental Authority on account of any Lender or the Issuing Bank
pursuant to Section 2.19, (iii) any Lender becomes a Defaulting Lender or
(iv) any Lender refuses to consent to any amendment, waiver or other
modification of any Loan Document requested by the Borrower that requires the
consent of a greater percentage of the Lenders than the Required Lenders and
such amendment, waiver or other modification is consented to by the Required
Lenders, the Borrower may, at its sole expense and effort (including with
respect to the processing and recordation fee referred to in
Section 9.4(b)), upon notice to such Lender or the Issuing Bank and the
Administrative Agent, require such Lender or the Issuing Bank to transfer and
assign, without recourse, representation or warranty, except as to warranty as
to its ownership of the assigned obligations (in accordance with and subject to
the restrictions contained in Section 9.4), all of its interests, rights
and obligations under this Agreement to an assignee that shall assume such
assigned obligations and, with respect to clause (iv) above, shall consent to
such requested amendment, waiver or other modification of any Loan Document
(which assignee may be another Lender,

 

 

40

 

if a Lender accepts such assignment); provided that
(x) such assignment shall not conflict with any law, rule or regulation or
order of any court or other Governmental Authority having jurisdiction, (y) the
Borrower shall have received the prior written consent of the Administrative
Agent (and, if a Revolving Credit Commitment is being assigned, of the Issuing
Bank and the Swingline Lender), which consent shall not unreasonably be
withheld, and (z) the Borrower or such assignee shall have paid to the affected
Lender or the Issuing Bank in immediately available funds an amount equal to
the sum of the principal of and interest accrued to the date of such payment on
the outstanding Loans or L/C Disbursements of such Lender or the Issuing Bank plus
all Fees and other amounts accrued for the account of such Lender or the
Issuing Bank hereunder (including any amounts under Section 2.14 and
Section 2.15); provided, further, that, if prior to any such
transfer and assignment the circumstances or event that resulted in such
Lender’s or the Issuing Bank’s claim for compensation under Section 2.14
or the amounts paid pursuant to Section 2.19, as the case may be, cease to
cause such Lender or the Issuing Bank to suffer increased costs or reductions
in amounts received or receivable or reduction in return on capital or cease to
result in amounts being payable under Section 2.19, as the case may be
(including as a result of any action taken by such Lender or the Issuing Bank
pursuant to paragraph (b) below), or if such Lender or the Issuing Bank shall
waive its right to claim further compensation under Section 2.14 in
respect of such circumstances or event or shall waive its right to further
payments under Section 2.19 in respect of such circumstances or event or
shall consent to the proposed amendment, waiver, consent or other modification,
as the case may be, then such Lender or the Issuing Bank shall not thereafter
be required to make any such transfer and assignment hereunder.

 

(b)          
If (i) any Lender or the Issuing Bank shall request compensation under
Section 2.14 or (ii) the Borrower is required to pay any additional amount
to any Lender or the Issuing Bank or any Governmental Authority on account of
any Lender or the Issuing Bank, pursuant to Section 2.19, then such Lender
or the Issuing Bank shall use reasonable efforts (which shall not require such
Lender or the Issuing Bank to incur an unreimbursed loss or unreimbursed cost
or expense or otherwise take any action inconsistent with its internal policies
or legal or regulatory restrictions or suffer any disadvantage or burden deemed
by it to be significant) (x) to file any certificate or document reasonably
requested in writing by the Borrower or (y) to assign its rights and delegate
and transfer its obligations hereunder to another of its offices, branches or
Affiliates, if such filing or assignment would reduce its claims for
compensation under Section 2.14 or would reduce amounts payable pursuant
to Section 2.19, as the case may be, in the future.  The Borrower
hereby agrees to pay all reasonable costs and expenses incurred by any Lender
or the Issuing Bank in connection with any such filing or assignment,
delegation and transfer.

 

               
SECTION 2.21.  Swingline Loans. 
(a)  Swingline Commitment.  Subject to the terms and
conditions and relying upon the representations and warranties herein set
forth, the Swingline Lender agrees to make loans to the Borrower at any time
and from time to time on and after the Closing Date and until the earlier of
the Revolving Credit Maturity Date and the termination of the Revolving Credit
Commitments in accordance with the terms hereof, in an aggregate principal
amount at any time outstanding that will not result in (i) the aggregate
principal amount of all Swingline Loans exceeding $5,000,000 in the aggregate
or (ii) the Aggregate Revolving Credit Exposure, after giving effect to any
Swingline Loan, exceeding the Total Revolving Credit Commitment.  Each
Swingline Loan shall be in a principal amount that is an integral multiple of
$100,000 and not less than $100,000.  The Swingline Commitment may be
terminated or reduced from time to time as provided herein.  Within the
foregoing limits, the Borrower may borrow, pay or prepay and reborrow Swingline
Loans hereunder, subject to the terms, conditions and limitations set forth
herein.

 

(b)          
Swingline Loan Borrowing Procedure. The Borrower shall notify the
Swingline Lender by fax, or by telephone (confirmed by fax), not later than
12:00 (noon), New York City time, on the day of a proposed Swingline
Loan.  Such notice shall be delivered on a Business Day, shall be
irrevocable and shall refer to this Agreement and shall specify the requested
date (which shall be a Business Day) and

 

 

41

 

amount of such Swingline Loan and
the wire transfer instructions for the account of the Borrower to which the
proceeds of such Swingline Loan should be transferred. The Swingline Lender
shall promptly make each Swingline Loan by wire transfer to the account
specified by the Borrower in such request.

 

(c)          
Prepayment.  The Borrower shall have the right at any time and from
time to time to prepay any Swingline Loan, in whole or in part, upon giving
written or fax notice (or telephonic notice promptly confirmed by written
notice) to the Swingline Lender and to the Administrative Agent before 12:00
(noon), New York City time on the date of prepayment at the Swingline Lender’s
address for notices specified in Section 9.1.

 

(d)          
Interest.  Each Swingline Loan shall be an ABR Loan and, subject to
the provisions of Section 2.7, shall bear interest at the rate provided
for the ABR Revolving Loans as provided in Section 2.6(a).

 

(e)          
Participations.  The Swingline Lender may by written notice given
to the Administrative Agent not later than 11:00 a.m., New York City time, on
any Business Day require the Revolving Credit Lenders to acquire participations
on such Business Day in all or a portion of the Swingline Loans
outstanding.  Such notice shall specify the aggregate amount of Swingline
Loans in which the Revolving Credit Lenders will participate.  The
Administrative Agent will, promptly upon receipt of such notice, give notice to
each Revolving Credit Lender, specifying in such notice such Lender’s Pro Rata
Percentage of such Swingline Loan or Loans.  In furtherance of the
foregoing, each Revolving Credit Lender hereby absolutely and unconditionally
agrees, upon receipt of notice as provided above, to pay to the Administrative
Agent, for the account of the Swingline Lender, such Revolving Credit Lender’s
Pro Rata Percentage of such Swingline Loan or Loans.  Each Revolving
Credit Lender acknowledges and agrees that its obligation to acquire participations
in Swingline Loans pursuant to this paragraph is absolute and unconditional and
shall not be affected by any circumstance whatsoever, including the occurrence
and continuance of a Default or an Event of Default, and that each such payment
shall be made without any offset, abatement, withholding or reduction
whatsoever.  Each Revolving Credit Lender shall comply with its obligation
under this paragraph by wire transfer of immediately available funds, in the
same manner as provided in Section 2.2(c) with respect to Loans made by
such Lender (and Section 2.2(c) shall apply, mutatis mutandis, to the payment obligations of the Lenders)
and the Administrative Agent shall promptly pay to the Swingline Lender the
amounts so received by it from the Lenders.  The Administrative Agent
shall notify the Borrower of any participations in any Swingline Loan acquired
pursuant to this paragraph and thereafter payments in respect of such Swingline
Loan shall be made to the Administrative Agent and not to the Swingline Lender. 
Any amounts received by the Swingline Lender from the Borrower (or other party
on behalf of the Borrower) in respect of a Swingline Loan after receipt by the
Swingline Lender of the proceeds of a sale of participations therein shall be
promptly remitted to the Administrative Agent; any such amounts received by the
Administrative Agent shall be promptly remitted by the Administrative Agent to
the Lenders that shall have made their payments pursuant to this paragraph and
to the Swingline Lender, as their interests may appear. The purchase of
participations in a Swingline Loan pursuant to this paragraph shall not relieve
the Borrower (or other party liable for obligations of the Borrower) of any
default in the payment thereof.

 

               
SECTION 2.22.  Letters of Credit. 
(a)  General.  The Borrower may request the issuance of a
Letter of Credit denominated in Dollars or in an Alternative Currency for its
own account or for the account of any Subsidiary, in a form reasonably
acceptable to the Administrative Agent and the Issuing Bank, at any time and
from time to time while the Revolving Credit Commitments remain in
effect.  This Section shall not be construed to impose an obligation
upon the Issuing Bank to issue any Letter of Credit that is inconsistent with
the terms and conditions of this Agreement.

 

 

42

 

(b)          
Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. 
In order to request the issuance of a Letter of Credit (or to amend, renew or
extend an existing Letter of Credit), the Borrower shall hand deliver or fax to
the Issuing Bank and the Administrative Agent (reasonably in advance of the
requested date of issuance, amendment, renewal or extension) a notice
requesting the issuance of a Letter of Credit, or identifying the Letter of
Credit to be amended, renewed or extended, the date of issuance, amendment,
renewal or extension, the date on which such Letter of Credit is to expire
(which shall comply with paragraph (c) below), whether such Letter of Credit
shall be issued in Dollars or an Alternative Currency, 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 such Letter of Credit. The
Issuing Bank shall promptly (i) notify the Administrative Agent in writing of
the amount and expiry date of each Letter of Credit issued by it and (ii)
provide a copy of each such Letter of Credit (and any amendments, renewals or
extensions thereof) to the Administrative Agent.  A Letter of Credit shall
be issued, amended, renewed or extended only if, and upon issuance, amendment,
renewal or extension of each Letter of Credit the Borrower shall be deemed to
represent and warrant that, after giving effect to such issuance, amendment,
renewal or extension (i) the L/C Exposure shall not exceed $50,000,000, (ii)
the Aggregate Alternative Currency Exposure shall not exceed $50,000,000 and
(iii) the Aggregate Revolving Credit Exposure shall not exceed the Total
Revolving Credit Commitment.  The Borrower shall be deemed to have
complied with the notification and other information delivery requirements set
forth in this Section 2.22(b) in respect of the Letter of Credit in the
form attached hereto as Schedule 2.22(b), which Letter of Credit shall be
issued on the Closing Date.

 

(c)          
Expiration Date.  Each Letter of Credit shall expire at the close
of business on the earlier of the date one year after the date of the issuance
of such Letter of Credit and the date that is five Business Days prior to the
Revolving Credit Maturity Date, unless such Letter of Credit expires by its
terms on an earlier date; provided, that a Letter of Credit may, upon
the request of the Borrower, include a provision whereby such Letter of Credit
shall be renewed automatically for additional consecutive periods of 12 months
or less (but not beyond the date that is five Business Days prior to the
Revolving Credit Maturity Date) unless the Issuing Bank notifies the
beneficiary thereof at least 30 days prior to the then-applicable expiration
date that such Letter of Credit will not be renewed.

 

(d)          
Participations.  By the issuance of a Letter of Credit and without
any further action on the part of the Issuing Bank or the Lenders, the Issuing
Bank hereby grants to each Revolving Credit Lender, and each such Lender hereby
acquires from the Issuing Bank, a participation in such Letter of Credit equal
to such Lender’s Pro Rata Percentage of the aggregate amount available to be
drawn under such Letter of Credit, effective upon the issuance of such Letter
of Credit.  In consideration and in furtherance of the foregoing, each
Revolving Credit Lender hereby absolutely and unconditionally agrees to pay to
the Administrative Agent, for the account of the Issuing Bank, such Lender’s
Pro Rata Percentage of each L/C Disbursement made by the Issuing Bank and not
reimbursed by the Borrower (or, if applicable, another party pursuant to its
obligations under any other Loan Document) forthwith on the date due as
provided in Section 2.2(f).  Each Revolving Credit Lender
acknowledges and agrees that its obligation to acquire participations pursuant
to this paragraph in respect of Letters of Credit is absolute and unconditional
and shall not be affected by any circumstance whatsoever, including the
occurrence and continuance of a Default or an Event of Default, and that each
such payment shall be made without any offset, abatement, withholding or
reduction whatsoever.

 

(e)          
Reimbursement.  If the Issuing Bank shall make any L/C Disbursement
in respect of a Letter of Credit, the Borrower shall pay to the Administrative
Agent (or directly to the Issuing Bank, with concurrent notice to the
Administrative Agent) an amount (in the currency in which the Letter of Credit
was denominated) equal to such L/C Disbursement not later than two hours after
the Borrower shall have received notice from the Issuing Bank that payment of
such draft will be made, or, if the Borrower shall

 

 

43

 

have received such notice later
than 10:00 a.m., Local Time, on any Business Day, not later than 10:00 a.m.,
Local Time, on the immediately following Business Day.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

44

 

with the terms thereof shall, in each case, be deemed
not to constitute willful misconduct or gross negligence of the Issuing Bank.

 

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

 

(h)          
Interim Interest.  If the Issuing Bank shall make any L/C
Disbursement in respect of a Letter of Credit, then, unless the Borrower shall
reimburse such L/C Disbursement in full on such date, the unpaid amount thereof
shall bear interest for the account of the Issuing Bank, for each day from and
including the date of such L/C Disbursement, to but excluding the earlier of
the date of payment by the Borrower or the date on which interest shall
commence to accrue thereon as provided in Section 2.2(f), at the rate per
annum that would apply to such amount if such amount were an ABR Revolving
Loan.

 

(i)           
Resignation or Removal of the Issuing Bank.  The Issuing Bank may
resign at any time by giving 30 days’ prior written notice to the
Administrative Agent, the Lenders and the Borrower, and may be removed at any
time by the Borrower by notice to the Issuing Bank, the Administrative Agent
and the Lenders.  Subject to the next succeeding paragraph, upon the
acceptance of any appointment as the Issuing Bank hereunder by a Lender that
shall agree to serve as successor Issuing Bank, such successor shall succeed to
and become vested with all the interests, rights and obligations of the
retiring Issuing Bank and the retiring Issuing Bank shall be discharged from
its obligations to issue additional Letters of Credit hereunder.  At the
time such removal or resignation shall become effective, the Borrower shall pay
all accrued and unpaid fees pursuant to Section 2.5(c)(ii).  The
acceptance of any appointment as the Issuing Bank hereunder by a successor
Lender shall be evidenced by an agreement entered into by such successor, in a
form satisfactory to the Borrower and the Administrative Agent, and, from and
after the effective date of such agreement, (i) such successor Lender shall
have all the rights and obligations of the previous Issuing Bank under this
Agreement and the other Loan Documents and (ii) references herein and in the
other Loan Documents to the term “Issuing Bank” shall be deemed to refer to
such successor or to any previous Issuing Bank, or to such successor and all
previous Issuing Banks, as the context shall require.  After the
resignation or removal of the Issuing Bank hereunder, the retiring Issuing Bank
shall remain a party hereto and shall continue to have all the rights and
obligations of an Issuing Bank under this Agreement and the other Loan
Documents with respect to Letters of Credit issued by it prior to such
resignation or removal, but shall not be required to issue additional Letters
of Credit.

 

(j)           
Cash Collateralization.  If any Event of Default shall occur and be
continuing, the Borrower shall, on the Business Day it receives notice from the
Administrative Agent or the Required Lenders (or, if the maturity of the Loans
has been accelerated, Revolving Credit Lenders holding participations in
outstanding Letters of Credit representing greater than 50% of the aggregate
undrawn amount of all outstanding Letters of Credit) thereof and of the amount
to be deposited, deposit in an account with the Administrative Agent, for the
benefit of the Revolving Credit Lenders, an amount in cash equal to the L/C
Exposure as of such date; provided, however, that the obligation
to deposit such cash shall become effective immediately, and such deposit shall
become immediately due and payable, without demand or other notice of any kind,
upon the occurrence of any Event of Default with respect to the Borrower
described in clause (g) or (h) of Article VII.  Such deposit shall be
held by the Administrative Agent as collateral for the payment and performance
of the Obligations.  The Administrative Agent shall have exclusive
dominion and control, including the exclusive right of

 

 

45

 

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

 

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

 

               
SECTION 2.23.  Increase in Term Loan
Commitments.  (a)  The Borrower may, by written notice
to the Administrative Agent from time to time, request Incremental Term Loan
Commitments in an amount not to exceed the Incremental Term Loan Amount from
one or more Incremental Term Lenders (which may include any existing Lender)
willing to provide such Incremental Term Loans in their own discretion; provided,
that (i) before submitting any such request to a Person that is not a Lender,
the Borrower shall first give each existing Lender the opportunity to provide
such Incremental Term Loan Commitments (in which case, existing Lenders shall
have no more than two (2) Business Days from the date of such notice to
indicate whether they are willing to provide such Incremental Term Loans) and
(ii) each Incremental Term Lender, if not already a Lender hereunder, shall be
subject to the approval of the Administrative Agent (which approval shall not
be unreasonably withheld).  Such notice shall set forth (i) the amount of
the Incremental Term Loan Commitments being requested (which shall be in
minimum increments of $1,000,000 and a minimum amount of $5,000,000 or equal to
the remaining Incremental Term Loan Amount), (ii) the date on which such
Incremental Term Loan Commitments are requested to become effective (which
shall not be less than 10 Business Days after the date of such notice) and
(iii) whether such Incremental Term Loan Commitments are to be Term Loan
Commitments or commitments to make term loans with terms different from the
Term Loans (“Other Term Loans”).

 

(b)          
The Borrower and each Incremental Term Lender shall execute and deliver to the
Administrative Agent an Incremental Term Loan Assumption Agreement and such
other documentation as the Administrative Agent shall reasonably specify to
evidence the Incremental Term Loan Commitment of such Incremental Term
Lender.  Each Incremental Term Loan Assumption Agreement shall specify the
terms of the Incremental Term Loans to be made thereunder; provided,
that, without the prior written consent of the Required Lenders, (i) the final
maturity date of any Other Term Loans shall be no earlier than the Term Loan
Maturity Date and (ii) the average life to maturity of any Other Term Loans
shall be no shorter than the average life to maturity of the Term Loans and provided, further, that, if the interest rate margin in respect of any Other
Term Loan would exceed the Applicable Percentage for the Term Loans by more
than 1⁄2 of 1% (it being understood that any such increase may take the form of
original issue discount (“OID”), with OID being equated to the interest
rates in a manner determined by the Administrative Agent based on an assumed
four-year life to maturity), the Applicable Percentage for

 

46

 

the Term Loans shall be increased so that the interest
rate margin in respect of such Other Term Loan (giving effect to any OID issued
in connection with such Other Term Loan) is no more than 1⁄2 of 1% higher than
the Applicable Percentage for the Term Loans.  The Administrative Agent
shall promptly notify each Lender as to the effectiveness of each Incremental
Term Loan Assumption Agreement.  Each of the parties hereto hereby agrees
that, upon the effectiveness of any Incremental Term Loan Assumption Agreement,
this Agreement shall be amended to the extent (but only to the extent)
necessary to reflect the existence and terms of the Incremental Term Loan
Commitment evidenced thereby as provided for in Section 9.8(b).  Any
such deemed amendment may be memorialized in writing by the Administrative
Agent with the Borrower’s consent (not to be unreasonably withheld) and
furnished to the other parties hereto.

 

(c)                                 
Notwithstanding
the foregoing, no Incremental Term Loan Commitment shall become effective under
this Section 2.23 unless (i) on the date of such effectiveness, the
conditions set forth in paragraphs (b) and (c) of Section 4.1 shall be
satisfied and the Administrative Agent shall have received a certificate to that
effect dated such date and executed by a Financial Officer of the Borrower,
(ii) the Administrative Agent shall have received (with sufficient copies for
each of the Incremental Term Lenders) legal opinions, board resolutions and
other closing certificates and documentation consistent with those delivered on
the Closing Date under Section 4.2 and (iii) the Borrower would be in Pro
Forma Compliance after giving effect to such Incremental Term Loan Commitment
and the Loans to be made thereunder and the application of the proceeds
therefrom as if made and applied on such date.

 

(d)                                
Each
of the parties hereto hereby agrees that the Administrative Agent may take any
and all action as may be reasonably necessary to ensure that all Incremental
Term Loans (other than Other Term Loans), when originally made, are included in
each Borrowing of outstanding Term Loans on a pro rata basis, and the Borrower
agrees that Section 2.15 shall apply to any conversion of Eurodollar Term
Loans to ABR Term Loans reasonably required by the Administrative Agent to
effect the foregoing.  In addition, to the extent any Incremental Term
Loans are not Other Term Loans, the scheduled amortization payments under
Sections 2.11(a) required to be made after the making of such Incremental Term
Loans shall be ratably increased by the aggregate principal amount of such
Incremental Term Loans.

 

ARTICLE III

 

Representations
and Warranties

 

Each of Holdings and the
Borrower represents and warrants to the Administrative Agent, the Issuing Bank
and each of the Lenders that (both prior to and after giving effect to the
Acquisition):

 

              
SECTION 3.1.  Organization; Powers. 
Holdings, the Borrower and each of the Subsidiaries (a) is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization, (b) has all requisite power and authority to own its property and
assets and to carry on its business as now conducted and as proposed to be
conducted, (c) is qualified to do business in, and is in good standing in,
every jurisdiction where such qualification is required, except where the
failure so to qualify could not reasonably be expected to result in a Material
Adverse Effect, and (d) has the power and authority to execute, deliver and
perform its obligations under each of the Loan Documents and each other
agreement or instrument contemplated hereby or thereby to which it is or will
be a party and, in the case of the Borrower, to borrow hereunder.

 

               
SECTION 3.2.  Authorization. 
The Transactions (a) have been duly authorized by all requisite corporate and,
if required, stockholder action and (b) will not (i) violate (A) any provision
of law, statute, rule or regulation, or of the certificate or articles of
incorporation or other constitutive documents or by-laws of Holdings, the
Borrower or any Subsidiary, (B) any order of any Governmental Authority or (C)
any

 

 

47

 

provision of any indenture, material agreement or
other material instrument to which Holdings, the Borrower or any Subsidiary is
a party or by which any of them or any of their property is or may be bound,
(ii) except as set forth on Schedule 3.2, be in conflict with, result in a
breach of or constitute (alone or with notice or lapse of time or both) a
default under, or give rise to any right to accelerate or to require the
prepayment, repurchase or redemption of any obligation under any such
indenture, material agreement or other material instrument or (iii) result in
the creation or imposition of any Lien upon or with respect to any property or
assets now owned or hereafter acquired by Holdings, the Borrower or any
Subsidiary (other than any Lien created hereunder or under the Security
Documents).

 

              
SECTION 3.3.  Enforceability. 
This Agreement has been duly executed and delivered by Holdings and the
Borrower and constitutes, and each other Loan Document when executed and
delivered by each Loan Party party thereto will constitute, a legal, valid and
binding obligation of such Loan Party enforceable against such Loan Party in
accordance with its terms.

 

               
SECTION 3.4.  Governmental Approvals. 
Except as set forth on Schedule 3.4, no action, consent or approval of,
registration or filing with or any other action by any Governmental Authority
is or will be required in connection with the Transactions, except for (a) the
filing of Uniform Commercial Code financing statements and filings with the
United States Patent and Trademark Office and the United States Copyright
Office, (b) recordation of any Mortgages, (c) such as have been made or
obtained and are in full force and effect or which are not material to the
consummation of the Transactions and (d) those approvals, consents, exemptions,
authorizations or other actions, notices or filings, the failure of which to
obtain or make could not reasonably be expected to have a Material Adverse
Effect.

 

               
SECTION 3.5.  Financial Statements. 
(a)  The Borrower has heretofore furnished to the Lenders (i) the
consolidated balance sheets and related statements of income, stockholders’
equity and cash flows of the Company and its consolidated subsidiaries as of
and for the fiscal year ended January 3, 2004, audited by and accompanied
by the unqualified opinion of Ernst & Young LLP, independent public
accountants and (ii) the unaudited consolidated balance sheet and related
statements of income, stockholders’ equity and cash flows of the Company and
its consolidated subsidiaries as of and for each fiscal quarter subsequent to
January 3, 2004 ended 45 days before the Closing Date.  Such
financial statements present fairly, in all material respects, the financial
condition and results of operations and cash flows of the Company and its
consolidated subsidiaries as of such dates and for such periods.  Except
as set forth on Schedule 3.5(a), such balance sheets and the notes thereto
disclose all material liabilities, direct or contingent, of the Borrower and
its consolidated subsidiaries as of the dates thereof.  Such financial
statements were prepared in accordance with GAAP applied on a consistent basis,
except that the unaudited financial statements are subject to normal year-end
adjustments and do not contain notes thereto.

 

(b)                                
The
Borrower has heretofore delivered to the Lenders the unaudited pro forma
consolidated balance sheet of the Company and its consolidated subsidiaries at
May 13, 2004, prepared giving effect to the Transactions as if they had
occurred on such date.  Such pro forma financial statements have been
prepared in good faith by the Borrower, based on the assumptions used to
prepare the pro forma financial information contained in the Confidential
Information Memorandum (which assumptions are believed by the Borrower on the
date hereof and on the Closing Date to be reasonable), are based on the best
information available to the Borrower as of the date of delivery thereof,
accurately reflect, in all material respects, all adjustments required to be
made to give effect to the Transactions and present fairly, in all material
respects, on a pro forma basis the estimated consolidated financial position of
the Company and its consolidated subsidiaries as of such date and for such
periods, assuming that the Transactions had actually occurred at such date or
at the beginning of such period, as the case may be.

 

              
SECTION 3.6.  No Material Adverse
Change.  No event, change or condition has occurred that
has had, or could reasonably be expected to have, a material adverse effect on
the business, operations, assets, liabilities,

 

 

48

 

financial condition or results of operations of
Holdings, the Borrower and the Subsidiaries, taken as a whole, since
January 3, 2004.

 

               
SECTION 3.7.  Title to Properties;
Possession Under Leases.  (a)  Each of Holdings, the
Borrower and each of the Subsidiaries has good and marketable title to, or
valid leasehold interests in, all its material properties and material assets,
except for minor defects in title that do not materially interfere with its
ability to conduct its business or to utilize such assets for their intended
purposes and Liens permitted by Section 6.2 and except where the failure
to have such title could not reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect.  All such material properties
and assets are free and clear of Liens, other than Liens expressly permitted by
Section 6.2.

 

(b)                                
Each
of Holdings, the Borrower and each of the Subsidiaries has complied with all
material obligations due and payable or required to be performed under all
material leases to which it is a party and all such material leases are in full
force and effect.  Each of Holdings, the Borrower and each of the
Subsidiaries enjoys peaceful and undisturbed possession under all such leases,
except where the failure to so enjoy could not reasonably be expected to have a
Material Adverse Effect.

 

               
SECTION 3.8.  Subsidiaries. 
Schedule 3.8 sets forth as of the Closing Date a list of all Subsidiaries
and the percentage ownership interest of Holdings or the Borrower
therein.  The shares of Equity Interests so indicated on Schedule 3.8
are owned by Holdings or the Borrower, directly or indirectly, free and clear
of all Liens (other than Liens created under the Security Documents).

 

               
SECTION 3.9.  Litigation; Compliance
with Laws.  (a)  Except as set forth on Schedule 3.9,
there are not any actions, suits or proceedings at law or in equity or by or
before any Governmental Authority now pending or, to the knowledge of Holdings
or the Borrower, threatened against or affecting Holdings, the Borrower, any
Subsidiary or any business, property or rights of any such person (i) that
involve any Loan Document or the Transactions or (ii) as to which there is a
reasonable possibility of an adverse determination and that, if adversely
determined, could reasonably be expected, individually or in the aggregate, to
result in a Material Adverse Effect.

 

(b)                                
Since
the date of this Agreement, there has been no change in the status of the
matters disclosed on Schedule 3.9 that, individually or in the aggregate,
has resulted in, or could reasonably be expected to result in, a Material
Adverse Effect.

 

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

 

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

 

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

 

 

49

 

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

 

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

 

               
SECTION 3.12.  Investment Company
Act; Public Utility Holding Company Act.  None of Holdings,
the Borrower or any Subsidiary is (a) an “investment company” as defined in, or
subject to regulation under, the Investment Company Act of 1940 or (b) a
“holding company” as defined in, or subject to regulation under, the Public
Utility Holding Company Act of 1935.

 

               
SECTION 3.13.  Use of Proceeds. 
The Borrower will use the proceeds of the Loans (other than any Incremental
Term Loans) and will request the issuance of Letters of Credit only for the
purposes specified in Section 5.8.  The Borrower will use the
proceeds of any Incremental Term Loans solely as set forth in the applicable
Incremental Term Loan Assumption Agreement.

 

               
SECTION 3.14.  Tax Returns. 
Each of the Holdings, the Borrower and each of the Subsidiaries has filed or
caused to be filed all Federal and all material state, local and foreign tax
returns or materials required to have been filed by it and has paid or caused
to be paid all material taxes due and payable by it and all assessments
received by it, except taxes that are being contested in good faith by
appropriate proceedings and for which Holdings, the Borrower or such
Subsidiary, as applicable, shall have set aside on its books adequate reserves
and except for taxes the nonpayment of which could not reasonably be expected
to have a Material Adverse Effect.

 

               
SECTION 3.15.  No Material
Misstatements.  None of (a) the Confidential Information
Memorandum or (b) any other information, report, financial statement, exhibit
or schedule furnished by or on behalf of Holdings or the Borrower to the
Administrative Agent or any Lender in connection with the negotiation of any
Loan Document or included therein or delivered pursuant thereto contained,
which, in the case of clauses (a) and (b), when taken as a whole and together
with the representations and warranties contained in this Agreement, contains
or will contain any material misstatement of fact or omitted, omits or will
omit to state any material fact necessary to make the statements therein, in
the light of the circumstances under which they were, are or will be made, not
misleading; provided that to the extent any such information, report, financial
statement, exhibit or schedule was based upon or constitutes a forecast or
projection, each of Holdings and the Borrower represents only that it acted in
good faith and utilized reasonable assumptions and due care in the preparation
of such information, report, financial statement, exhibit or schedule and
it is understood that actual results may differ from forecasts and projections.

 

               
SECTION 3.16.  Employee Benefit
Plans.  Each of the Borrower and each of its ERISA
Affiliates is in compliance in all material respects with the applicable
provisions of ERISA and the Code and the regulations and published
interpretations thereunder.  No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events,
could reasonably be expected to result in a Material Adverse Effect.  The
present value of all benefit liabilities under any underfunded Plan (based on
the assumptions used to fund such plan and when considered together with all
such underfunded Plans) did not, as of the last annual valuation dates
applicable thereto, exceed the fair market value of the assets of such
underfunded Plans by an amount that could reasonably be expected to result in a
Material Adverse Effect.

 

 

50

 

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

 

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

 

               
SECTION 3.18.  Insurance. 
Schedule 3.18 sets forth a true, complete and correct description of all
insurance maintained by the Borrower or by the Borrower for its Subsidiaries as
of the date hereof and the Closing Date.  As of each such date, such
insurance is in full force and effect and all premiums have been duly paid if
due.  The Borrower and its Subsidiaries have insurance in such amounts and
covering such risks and liabilities as are, when considered in its entirety, in
the good faith judgment of the Borrower prudent in the ordinary course of
business of the Borrower and its Subsidiaries.

 

               
SECTION 3.19.  Security Documents. 
(a)  The Guarantee and Collateral Agreement, upon execution and delivery
thereof by the parties thereto, will create in favor of the Administrative
Agent, for the ratable benefit of the Secured Parties, a legal, valid and
enforceable security interest in the Collateral (as defined in the Guarantee
and Collateral Agreement) and the proceeds thereof and (i) when the Pledged
Collateral (as defined in the Guarantee and Collateral Agreement) is delivered
to the Administrative Agent, the Guarantee and Collateral Agreement shall
constitute a fully perfected first priority Lien on, and security interest in,
all right, title and interest of the Loan Parties in such Pledged Collateral,
in each case prior and superior in right to any other person, and (ii) when
financing statements in appropriate form are filed in the offices specified on
Schedule 3.19(a), the Lien created under the Guarantee and Collateral
Agreement will constitute a fully perfected Lien on, and security interest in,
all right, title and interest of the Loan Parties in all such Collateral as to
which a security interest may be perfected by such a filing (other than
Intellectual Property, as defined in the Guarantee and Collateral Agreement),
in each case prior and superior in right to any other person, other than with
respect to Liens expressly permitted by Section 6.2.

 

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

 

(c)                                 
The
Mortgages are effective to create in favor of the Administrative Agent, for the
ratable benefit of the Secured Parties, a legal, valid and enforceable Lien on
all of the Loan Parties’ right, title and interest in and to the Mortgaged
Property thereunder and the proceeds thereof, and when the Mortgages are filed
in the offices specified on Schedule 3.19(d), the Mortgages shall
constitute a fully perfected Lien on, and security interest in, all right,
title and interest of the Loan Parties in such Mortgaged Property and the
proceeds thereof, in each case prior and superior in right to any other person,
other than with respect to the rights of persons pursuant to Liens expressly
permitted by Section 6.2.

 

 

51

 

               
SECTION 3.20.  Location of Real
Property and Leased Premises.  Schedule 3.20(a) lists
completely and correctly as of the Closing Date all domestic real property
owned by the Borrower and the Subsidiaries and the addresses thereof.  The
Borrower and the Subsidiaries, as the case may be, as of the Closing Date, own
in fee all the real property set forth on Schedule 3.20(a). 
Schedule 3.20(b) lists completely and correctly as of the Closing Date all
material domestic real property leased by the Borrower and the Subsidiaries and
the addresses thereof.  The Borrower and the Subsidiaries, as the case may
be, as of the Closing Date, have valid leasehold interests in all the real
property set forth on Schedule 3.20(b).

 

               
SECTION 3.21.  Labor Matters. 
As of the date hereof and the Closing Date, there are no strikes, lockouts or
slowdowns against Holdings, the Borrower or any Subsidiary pending or, to the
knowledge of Holdings or the Borrower, threatened.  The consummation of
the Transactions will not give rise to any right of termination or right of
renegotiation on the part of any union under any collective bargaining
agreement to which Holdings, the Borrower or any Subsidiary is bound. 
Except to the extent any of the following, individually or in the aggregate,
could not reasonably be expected to have a Material Adverse Effect, (a) the
hours worked by and payments made to employees of Holdings, the Borrower and
the Subsidiaries have not been in violation in any material respect of the Fair
Labor Standards Act or any other applicable Federal, state, local or foreign
law dealing with such matters and (b) all payments due from Holdings, the
Borrower or any Subsidiary, or for which any claim may be made against
Holdings, the Borrower or any Subsidiary, on account of wages and employee
health and welfare insurance and other benefits, have been paid or accrued as a
liability on the books of Holdings, the Borrower or such Subsidiary.

 

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

 

               
SECTION 3.23.  Representations and
Warranties in Acquisition Documents.  All representations
and warranties set forth in the Acquisition Documents were true and correct at
the time as of which such representations and warranties were made (or deemed
made) except where the failure to be true and correct could not reasonably be likely
to have a Material Adverse Effect.

 

               
SECTION 3.24.  Senior Indebtedness. 
The Obligations constitute “Senior Indebtedness” under and as defined in the
Senior Subordinated Note Indenture.

 

               
SECTION 3.25.  Certain Treasury
Regulation Matters.  The Borrower does not intend to treat
the Loans and related transactions as being a “reportable” transaction (within
the meaning of Treasury Regulation 1.6011-4).  The Borrower acknowledges
that the Administrative Agent and one or more of the Lenders may treat its
Loans as part of a transaction that is subject to Treasury Regulation
Section 301.6112-1 to the extent that the Borrower’s application of the
proceeds of the Loans requires the same and the Administrative Agent and such
Lender or Lenders, as applicable, may, in connection therewith, maintain such
lists and other records as they may determine is required by such Treasury
Regulation.

 

               
SECTION 3.26.  Foreign Assets
Control Regulations, Etc.  None of the requesting or
borrowing of the Loans, the requesting or issuance, extension or renewal of any
Letters of Credit or the use of the proceeds of any

 

 

52

 

thereof will violate the Trading With the Enemy Act
(50 U.S.C. § 1 et seq., as amended) (the “Trading With the Enemy Act”)
or any of the foreign assets control regulations of the United States Treasury
Department (31 CFR, Subtitle B, Chapter V, as amended) (the “Foreign Assets
Control Regulations”) or any enabling legislation or executive order
relating thereto (which for the avoidance of doubt shall include, but shall not
be limited to (a) Executive Order 13224 of September 21, 2001 Blocking
Property and Prohibiting Transactions With Persons Who Commit, Threaten to
Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)) (the “Executive
Order”) and (b) the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001
(Public Law 107-56)).  To the knowledge of the Borrower, neither the
Borrower nor any of its Subsidiaries (a) is a “blocked person” as described in
the Executive Order, the Trading With the Enemy Act or the Foreign Assets
Control Regulations or (b) engages transactions with any such “blocked person”
blocked by such order, law or regulation.

 

ARTICLE IV

 

Conditions of
Lending

 

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

 

               
SECTION 4.1.  All Credit Events. 
On the date of each Borrowing, including each Borrowing of a Swingline Loan and
on the date of each issuance, amendment, extension or renewal of a Letter of
Credit (each such event being called a “Credit Event”):

 

(a)                                 
The
Administrative Agent shall have received a notice of such Borrowing as required
by Section 2.3 (or such notice shall have been deemed given in accordance
with Section 2.3) or, in the case of the issuance, amendment, extension or
renewal of a Letter of Credit, the Issuing Bank and the Administrative Agent
shall have received a notice requesting the issuance, amendment, extension or
renewal of such Letter of Credit as required by Section 2.22(b) or, in the
case of the Borrowing of a Swingline Loan, the Swingline Lender and the
Administrative Agent shall have received a notice requesting such Swingline
Loan as required by Section 2.21(b).

 

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

 

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

 

Each Credit Event shall
be deemed to constitute a representation and warranty by the Borrower and
Holdings on the date of such Credit Event as to the matters specified in
paragraphs (b) and (c) of this Section 4.1.

 

               
SECTION 4.2.  First Credit Event. 
On the Closing Date:

 

(a)                                 
The Administrative
Agent shall have received, on behalf of itself, the Lenders and the Issuing
Bank, a favorable written opinion of (i) Willkie Farr & Gallagher, counsel
for Holdings and the Borrower, substantially to the effect set forth in Exhibit
E-1, and (ii) each local counsel listed on Schedule 4.2(a), substantially
to the effect set forth in Exhibit E-2, in each case

 

 

53

 

(A) dated the Closing Date, (B) addressed to the
Issuing Bank, the Administrative Agent and the Lenders and (C) covering such
other matters relating to the Loan Documents and the Transactions as the
Administrative Agent shall reasonably request, and Holdings and the Borrower
hereby request such counsel to deliver such opinions.

 

(b)                                
All legal matters
incident to this Agreement, the Borrowings and extensions of credit hereunder
and the other Loan Documents shall be reasonably satisfactory to the Lenders,
to the Issuing Bank and to the Administrative Agent.

 

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

 

(d)                                
The Administrative
Agent shall have received a certificate, dated the Closing Date and signed by a
Financial Officer of the Borrower, confirming compliance with the conditions
precedent set forth in paragraphs (b) and (c) of Section 4.1.

 

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

 

(f)                                   
The Security
Documents shall have been duly executed by each Loan Party that is to be a
party thereto and shall be in full force and effect on the Closing Date. 
The Administrative Agent on behalf of the Secured Parties shall have a security
interest in the Collateral of the type and priority described in each Security
Document, except to the extent otherwise provided herein or in such Security
Documents.

 

(g)                                
The Administrative
Agent shall have received a Perfection Certificate with respect to the Loan
Parties dated the Closing Date and duly executed by a Responsible Officer of
the Borrower, and shall have received the results of a search of the Uniform
Commercial Code filings (or equivalent filings) made with respect to the Loan
Parties in the states (or other jurisdictions) of formation of such persons, in
which the chief executive office of each such person is located and in the
other jurisdictions in which such persons maintain property, in each case as
indicated on such Perfection Certificate, together with copies of the financing
statements

 

 

54

 

(or similar documents) disclosed by such search, and
accompanied by evidence satisfactory to the Administrative Agent that the Liens
indicated in any such financing statement (or similar document) would be
permitted under Section 6.2 or have been or will be contemporaneously released
or terminated.

 

(h)                                
(i)  Each of the
Mortgages, substantially in the form of Exhibit F, relating to each of the
Mortgaged Properties shall have been duly executed by the parties thereto and
delivered to the Administrative Agent and shall be in full force and effect,
(ii) each of such Mortgaged Properties shall not be subject to any Lien other
than those permitted under Section 6.2, (iii) each of such Mortgages shall
have been filed and recorded in the recording office as specified on
Schedule 3.19(d) (or a lender’s title insurance policy or a final marked
commitment, in form and substance acceptable to the Administrative Agent,
insuring such Mortgage as a first lien on such Mortgaged Property (subject to
any Lien permitted by Section 6.2) shall have been received by the
Administrative Agent) and, in connection therewith, the Administrative Agent
shall have received evidence satisfactory to it of each such filing and
recordation and (iv) the Administrative Agent shall have received such other
documents, including a policy or policies of title insurance issued by a
nationally recognized title insurance company, together with such endorsements,
coinsurance and reinsurance as may be reasonably requested by the
Administrative Agent and the Lenders, insuring the Mortgages as valid first
liens on the Mortgaged Properties, free of Liens other than those permitted
under Section 6.2.

 

(i)                                    
The Administrative
Agent shall have received a copy of, or a certificate as to coverage under, the
insurance policies required by Section 5.2 and the applicable provisions
of the Security Documents, each of which shall be endorsed or otherwise amended
to include a customary lender’s loss payable endorsement and to name the
Administrative Agent on behalf of the Secured Parties as additional insured, in
form and substance satisfactory to the Administrative Agent.

 

(j)                                    
Acquisition, etc.  The following transactions shall
have been consummated, in each case on terms and conditions reasonably
satisfactory to the Lenders:

 

(1)                                 
the Acquisition shall
have been consummated.

 

(2)                                 
Holdings shall have
received at least $275,000,000 from the proceeds of equity issued by Holdings,
and such proceeds shall have been contributed to the Borrower (the “Holdings
Equity Contribution”);

 

(3)                                 
the Borrower shall
have received at least $225,000,000 and €150,000,000 in gross cash proceeds
from the issuance of the Senior Subordinated Notes;

 

(4)                                 
the Administrative
Agent shall have received satisfactory evidence that the fees and expenses to
be incurred in connection with the Acquisition and the financing thereof shall
not exceed $55,000,000;

 

(5)                                 
(i) The
Administrative Agent shall have received satisfactory evidence that the Existing
Credit Agreement shall have been terminated and all amounts thereunder shall
have been paid in full and (ii) arrangements satisfactory to the Administrative
Agent shall have been made for the termination of all Liens granted in
connection therewith; and

 

 

55

 

(6)                                 
Immediately after
giving effect to the Transactions and the other transactions contemplated
hereby, the Borrower and the Subsidiaries shall have outstanding no Indebtedness
or preferred stock other than (a) Indebtedness outstanding under this
Agreement, (b) the Senior Subordinated Notes and (c) Indebtedness set forth on
Schedule 6.01.  Immediately after giving effect to the Transactions
and the other transactions contemplated hereby, Holdings shall have no
outstanding Indebtedness or preferred stock other than (a) its Guarantee of the
Indebtedness outstanding under this Agreement and its Guarantee of the Senior
Subordinated Notes.

 

(k)                                 
The Lenders shall
have received the financial statements and opinion referred to in
Section 3.5.

 

(l)                                    
All requisite
Governmental Authorities shall have approved or consented to the Transactions
and the other transactions contemplated hereby to the extent required, all
applicable appeal periods shall have expired and there shall not be any pending
or threatened litigation, governmental, administrative or judicial action that
could reasonably be expected to prevent or impose materially burdensome
conditions on the Transactions or the other transactions contemplated
hereby.  All requisite third-party consents necessary for the consummation
of the Acquisition shall have been obtained except for those third-party consents
where the failure to so obtain such consents would not have a Material Adverse
Effect.

 

(m)                              
The Lenders shall
have received a certificate of the chief financial officer of the Borrower
certifying that the Leverage Ratio as at January 3, 2004 for fiscal year
2003 is no greater than 6.1 to 1.0 and containing all information and
calculations necessary for determining such ratio.

 

(n)                                
The aggregate amount
of the Holdings Equity Contribution shall be no less than the product of (x)
0.25 and (y) the Total Enterprise Value of the Borrower.

 

(o)                                
The Administrative
Agent shall have received a solvency certificate from the chief financial
officer of the Borrower documenting the solvency of the Borrower and its
Subsidiaries after giving effect to the Transactions, in form and substance
reasonably satisfactory to the Administrative Agent.

 

ARTICLE V

 

Affirmative
Covenants

 

Each of Holdings and the
Borrower covenants and agrees with each Lender that so long as this Agreement
shall remain in effect and until the Commitments have been terminated and the
principal of and interest on each Loan, all Fees and all other expenses or
amounts payable under any Loan Document shall have been paid in full and all
Letters of Credit have been canceled or have expired and all amounts drawn
thereunder have been reimbursed in full, unless the Required Lenders shall
otherwise consent in writing, each of Holdings and the Borrower will, and will cause
each of the Material Subsidiaries to:

 

               
SECTION 5.1.  Existence; Businesses
and Properties.  (a)  Do or cause to be done all
things necessary to preserve, renew and keep in full force and effect its legal
existence, except as otherwise expressly permitted under Section 6.5.

 

 

56

 

(b)                                
Do
or cause to be done all things necessary to obtain, preserve, renew, extend and
keep in full force and effect all rights, licenses, permits, franchises,
authorizations, patents, copyrights, trademarks and trade names used in or
relating to the conduct of its business, except where the failure to do so
could not reasonably be expected to have a Material Adverse Effect; maintain
and operate such business in substantially the manner in which it is presently
conducted and operated, including any reasonable extension, development or
expansion thereof; comply with all applicable laws, rules, regulations and
decrees and orders of any Governmental Authority, whether now in effect or
hereafter enacted, except where the failure to do so could not reasonably be
expected to have a Material Adverse Effect; and at all times maintain and
preserve all property material to the conduct of such business and keep such
property in good repair, working order and condition and from time to time
make, or cause to be made, all needful and proper repairs, renewals, additions,
improvements and replacements thereto necessary in order that the business carried
on in connection therewith may be properly conducted at all times, except where
the failure to do so could not reasonably be expected to have a Material
Adverse Effect.

 

               
SECTION 5.2.  Insurance. 
(a)  Keep its insurable properties adequately insured at all times by
financially sound and reputable insurers; maintain such other insurance, to
such extent and against such risks, including fire and other risks insured
against by extended coverage, as is customary with companies in the same or
similar businesses operating in the same or similar locations, including public
liability insurance against claims for personal injury or death or property
damage occurring upon, in, about or in connection with the use of any
properties owned, occupied or controlled by it; and maintain such other
insurance as may be required by law.

 

(b)                                
Cause
all such policies covering any Collateral to be endorsed or otherwise amended
to include a customary lender’s loss payable endorsement, in form and substance
satisfactory to the Administrative Agent, which endorsement shall provide that,
from and after the Closing Date, if the insurance carrier shall have received
written notice from the Administrative Agent of the occurrence of an Event of
Default, the insurance carrier shall pay all proceeds otherwise payable to the
Borrower or the Loan Parties under such policies directly to the Administrative
Agent; cause all such policies to provide that neither the Borrower, the
Administrative Agent nor any other party shall be a coinsurer thereunder and to
contain a “Replacement Cost Endorsement”, without any deduction for
depreciation, and such other provisions as the Administrative Agent may
reasonably require from time to time to protect their interests; deliver
evidence of all such policies to the Administrative Agent; upon the occurrence
of an Event of Default, deliver original or certified copies of all such
policies to the Administrative Agent upon its request; cause each such policy to
provide that it shall not be canceled, modified or not renewed (i) by reason of
nonpayment of premium upon not less than 10 days’ prior written notice thereof
by the insurer to the Administrative Agent (giving the Administrative Agent the
right to cure defaults in the payment of premiums) or (ii) for any other reason
upon not less than 30 days’ prior written notice thereof by the insurer to the
Administrative Agent; deliver to the Administrative Agent, prior to the
cancellation, modification or nonrenewal of any such policy of insurance,
evidence of a renewal or replacement policy (or other evidence of renewal of a
policy previously delivered to the Administrative Agent) together with evidence
satisfactory to the Administrative Agent of payment of the premium therefor.

 

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

 

 

57

 

(d)                                
With
respect to any Mortgaged Property, carry and maintain comprehensive general
liability insurance including a “broad form” commercial general liability
endorsement and coverage on an occurrence basis against claims made for
personal injury (including bodily injury, death and property damage) and
umbrella liability insurance against any and all claims, in no event for a
combined single limit of less than $15,000,000, naming the Administrative Agent
as an additional insured, on forms satisfactory to the Administrative Agent.

 

(e)                                 
Notify
the Administrative Agent immediately whenever any separate insurance concurrent
in form or contributing in the event of loss with that required to be
maintained under this Section 5.2 is taken out by the Borrower; and
promptly deliver to the Administrative Agent a duplicate original copy of such
policy or policies.

 

               
SECTION 5.3.  Taxes. 
Pay all taxes, assessments and governmental charges or levies imposed upon it
or upon its income or profits or in respect of its property, before the same
shall become delinquent or in default; provided, however, that such payment and
discharge shall not be required with respect to any such tax, assessment,
charge or levy so long as (a) the validity or amount thereof shall be contested
in good faith by appropriate proceedings and the Borrower shall have set aside
on its books adequate reserves with respect thereto in accordance with GAAP and
such contest operates to suspend collection of the contested obligation, tax,
assessment or charge and enforcement of a Lien and, in the case of a Mortgaged
Property, there is no risk of forfeiture of such property or (b) the nonpayment
thereof could not reasonably be expected to result in a Material Adverse
Effect.

 

               
SECTION 5.4.  Financial Statements,
Reports, etc.  In the case of the Borrower, furnish to the
Administrative Agent (either physically or through electronic delivery reasonably
acceptable to the Administrative Agent), which shall furnish to each Lender:

 

(a)                                 
within 90 days after
the end of each fiscal year, its consolidated balance sheet and related
statements of income, stockholders’ equity and cash flows showing the financial
condition of the Borrower and its consolidated Subsidiaries as of the close of
such fiscal year and the results of its operations and the operations of such
Subsidiaries during such year, together with comparative figures for the
immediately preceding fiscal year, all audited by Ernst & Young LLP or
other independent public accountants of recognized national standing and
accompanied by an opinion of such accountants (which shall not be qualified in
any material respect) to the effect that such consolidated financial statements
fairly present the financial condition and results of operations of the
Borrower and its consolidated Subsidiaries on a consolidated basis in
accordance with GAAP consistently applied;

 

(b)                                
within 45 days after
the end of each of the first three fiscal quarters of each fiscal year, its
consolidated balance sheet and related statements of income, stockholders’
equity and cash flows showing the financial condition of the Borrower and its
consolidated Subsidiaries as of the close of such fiscal quarter and the
results of its operations and the operations of such Subsidiaries during such
fiscal quarter and the then elapsed portion of the fiscal year, and comparative
figures for the same periods in the immediately preceding fiscal year, all
certified by one of its Financial Officers as fairly presenting the financial
condition and results of operations of the Borrower and its consolidated
Subsidiaries on a consolidated basis in accordance with GAAP consistently
applied, subject to normal year-end audit adjustments;

 

(c)                                 
concurrently with any
delivery of financial statements under paragraph (a), or (b) above, a
certificate of the accounting firm (in the case of paragraph (a)) or Financial
Officer (in the case of paragraph (b)) opining on or certifying such statements
(which certificate, when furnished by an accounting firm, may be limited to
accounting matters and disclaim responsibility

 

 

58

 

for legal interpretations and which may be provided by
a Financial Officer if accounting firms generally are not providing such
certificates) (i) certifying that no Event of Default or Default has occurred
or, if such an Event of Default or Default has occurred, specifying the nature
and extent thereof and any corrective action taken or proposed to be taken with
respect thereto and (ii) setting forth computations in reasonable detail
satisfactory to the Administrative Agent demonstrating compliance with the
covenants contained in Sections 6.6, 6.10, 6.11 and 6.12 and, in the case of a
certificate delivered with the financial statements required by paragraph (a)
above, (x) setting forth the Borrower’s calculation of Excess Cash Flow and (y)
certifying that there has been no change in the business activities, assets or
liabilities of Holdings, or if there has been any such change, describing such
change in reasonable detail and certifying that Holdings is in compliance with
Section 6.8;

 

(d)                                
within 45 days after
the commencement of each fiscal year of the Borrower, a detailed consolidated
budget for such fiscal year (including a projected consolidated balance sheet
and related statements of projected operations and cash flows as of the end of
and for such fiscal year);

 

(e)                                 
promptly after the
same become publicly available, copies of all periodic and other reports, proxy
statements and other materials filed by Holdings, the Borrower or any
Subsidiary with the SEC, or any Governmental Authority succeeding to any or all
of the functions of said Commission, or with any national securities exchange,
or, after the initial Public Equity Offering (disregarding for purposes of this
Section 5.4(e) the Net Cash Proceeds dollar threshold contained in the
definition of such term), distributed to its shareholders, as the case may be;

 

(f)                                   
promptly after the
receipt thereof by Holdings or the Borrower or any Subsidiary, a copy of any
“management letter” received by any such person from its certified public
accountants and the management’s response thereto; and

 

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

 

Documents required to be delivered pursuant to
Section 5.4(a), (b) or (e) (to the extent any such documents are included
in materials otherwise filed with the SEC) may be delivered electronically and
if so delivered, shall be deemed to have been delivered on the date (i) on
which the Borrower posts such documents, or provides a link thereto on the
Borrower’s website on the Internet at the Borrower’s website address; or (ii)
on which such documents are posted on the Borrower’s behalf on
IntraLinks/IntraAgency or another relevant website, if any, to which each
Lender and the Administrative Agent have access (whether a commercial,
third-party website or whether sponsored by the Administrative Agent).

 

               
SECTION 5.5.  Litigation and Other
Notices.  Furnish to the Administrative Agent, the Issuing
Bank and each Lender prompt written notice of the following:

 

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

 

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

 

 

59

 

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

 

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

 

              
SECTION 5.6.  Information Regarding
Collateral.  (a)  Furnish to the Administrative Agent
prompt written notice of any change in (i) any Loan Party’s legal name, (ii)
the jurisdiction of organization or formation of any Loan Party, (iii) any Loan
Party’s identity or corporate structure or (iv) any Loan Party’s Federal
Taxpayer Identification Number.  Holdings and the Borrower agree not to
effect or permit any change referred to in the preceding sentence unless all
filings have been made under the Uniform Commercial Code or otherwise that are
required in order for the Administrative Agent to continue at all times
following such change to have a valid, legal and perfected security interest in
all the Collateral.  Holdings and the Borrower also agree promptly to
notify the Administrative Agent if any material portion of the Collateral is
damaged or destroyed.

 

(b)                                
In
the case of the Borrower, each year, at the time of delivery of the annual
financial statements with respect to the preceding fiscal year pursuant to
Section 5.4(a), deliver to the Administrative Agent a certificate of a
Financial Officer setting forth the information required pursuant to
Section 2 of the Perfection Certificate or confirming that there has been
no change in such information since the date of the Perfection Certificate
delivered on the Closing Date or the date of the most recent certificate
delivered pursuant to this Section 5.6.

 

               
SECTION 5.7.  Maintaining Records;
Access to Properties and Inspections.  Keep proper books of
record and account in which full, true and correct entries in conformity with
GAAP and all requirements of law are made of all dealings and transactions in
relation to its business and activities.  Each Loan Party will, and will
cause each of its subsidiaries to, permit any representatives designated by the
Administrative Agent or any Lender to visit and inspect the financial records
and the properties of Holdings, the Borrower or any Material Subsidiary at
reasonable times and as often as reasonably requested (but not, except during
the continuance of an Event of Default, more than two times per fiscal year)
and to make extracts from and copies of such financial records, and permit any
representatives designated by the Administrative Agent or any Lender to discuss
the affairs, finances and condition of Holdings, the Borrower or any Material
Subsidiary with the officers thereof and independent accountants
therefor.  Except following the occurrence and during the continuance of
any Default, the Borrower shall be entitled to have a representative present at
all such discussions and to obtain a copy of all written requests for
information relating to any Loan Party made by the Administrative Agent or any
Lender to any third party.

 

               
SECTION 5.8.  Use of Proceeds. 
Use the proceeds of (a) the Term Loans (other than the Incremental Term Loans)
to pay (i) a portion of the Existing Credit Agreement and other existing
Indebtedness of the Borrower, (ii) transaction costs incurred in connection
with the Transactions and (iii) a portion of the purchase price set forth in
the Acquisition Agreement, (b) the Revolving Loans and Swingline Loans for
working capital and general corporate purposes; provided, that up to
$10,000,000 in the aggregate of Revolving Loans and Swingline Loans may be
borrowed on the Closing Date to pay the costs described in clauses (a)(i)
through (a)(iii) above, (c) the Letters of Credit for general corporate
purposes and (d) Incremental Term Loans for general corporate purposes
(including Permitted Acquisitions).

 

               
SECTION 5.9.  Further Assurances. 
Execute any and all further documents, financing statements, agreements and
instruments, and take all further action (including (i) filing Uniform
Commercial Code and other financing statements, mortgages and deeds of trust
and (ii) delivering duly executed deposit account control agreements as
contemplated by, and within the time period referred to in, the Guarantee and

 

 

60

 

Collateral Agreement) that may be required under
applicable law, or that the Required Lenders or the Administrative Agent may
reasonably request, in order to effectuate the transactions contemplated by the
Loan Documents and in order to grant, preserve, protect and perfect the
validity and first priority of the security interests created or intended to be
created by the Security Documents.  The Borrower will cause any
subsequently acquired or organized Domestic Subsidiary (other than any Inactive
Subsidiary) or any Domestic Subsidiary that ceases to be an Inactive Subsidiary
to become a Loan Party by executing the Guarantee and Collateral Agreement and
each other applicable Security Document in favor of the Administrative
Agent.   In addition, subject to the last sentence of this
Section 5.9, from time to time, the Borrower will, at its cost and
expense, promptly secure the Obligations by pledging or creating, or causing to
be pledged or created, perfected security interests with respect to such of its
assets and properties as the Administrative Agent or the Required Lenders shall
designate (it being understood that it is the intent of the parties that the
Obligations shall be secured by substantially all the assets of the Borrower
and its Subsidiaries (including real and other properties acquired subsequent
to the Closing Date, but excluding real property with a value of less than
$1,000,000, leasehold real property, other immaterial leasehold property, and
other Excluded Property (as defined in the Guarantee and Collateral
Agreement).  Such security interests and Liens will be created under the
Security Documents and other security agreements, mortgages, deeds of trust and
other instruments and documents in form and substance satisfactory to the
Administrative Agent, and the Borrower shall deliver or cause to be delivered
to the Lenders all such instruments and documents (including legal opinions,
title insurance policies and lien searches) as the Administrative Agent shall
reasonably request to evidence compliance with this Section 5.9.  The
Borrower agrees to provide such evidence as the Administrative Agent shall
reasonably request as to the perfection and priority status of each such
security interest and Lien.  In furtherance of the foregoing, the Borrower
will give prompt notice to the Administrative Agent of the acquisition by it or
any of the Domestic Subsidiaries of any real property (or any interest in real
property) having a value in excess of $1,000,000.  The actions required
under this Section 5.9 shall be taken with 30 days (or such later time as
may be acceptable to the Administrative Agent) after the event giving rise to
the requirement to take such action.  Notwithstanding the foregoing, (x)
the Administrative Agent shall not take a security interest in those assets as
to which the Administrative Agent shall determine, in its reasonable
discretion, that the cost of obtaining such Lien (including any mortgage,
stamp, intangibles or other tax) are excessive in relation to the benefit to
the Lenders of the security afforded thereby and (y) Liens required to be
granted pursuant to this Section 5.9 shall be subject to exceptions and
limitations consistent with those set forth in the Collateral Documents as in
effect on the Closing Date (to the extent appropriate in the applicable
jurisdiction).

 

               
SECTION 5.10.   Certain
Treasury Regulation Matters.  In the event the Borrower
determines to take any action inconsistent with its intention as set forth in
the first sentence of Section 3.25, it will promptly notify the
Administrative Agent thereof.

 

               
SECTION 5.11.  Hedging Agreements. 
In the case of the Borrower, within 90 days after the Closing Date, enter into,
and thereafter maintain, Hedging Agreements with one or more Lenders (or
Affiliates thereof) to the extent necessary to provide that at least 50% of the
aggregate principal amount of Funded Debt of the Borrower outstanding on the
Closing Date is subject to either a fixed interest rate or interest rate
protection for a period of not less than two years from the Closing Date, which
Hedging Agreements shall have terms and conditions reasonably satisfactory to
the Administrative Agent.

 

               
SECTION 5.12.  Environmental Laws. 
Except, in each case, as would not, individually or in the aggregate, have a
Material Adverse Effect:

 

(a)  Comply in all
material respects with, and use reasonable efforts to ensure compliance in all
material respects by all tenants and subtenants, if any, with, all applicable
Environmental Laws, and obtain and comply in all material respects with and
maintain, and use reasonable efforts to ensure that all

 

 

61

 

tenants and subtenants obtain and comply in all
material respects with and maintain, any and all Environmental Permits required
of them by any applicable Environmental Laws.  For purposes of this
Section 5.12(a), noncompliance with the foregoing shall be deemed not to
constitute a breach of this covenant, provided, that upon learning of
any actual or suspected noncompliance, Borrower shall promptly undertake
reasonable efforts to achieve compliance.

 

(b)                                
Conduct
and complete in all material respects all investigations, studies, sampling and
testing, and all remedial, removal and other actions required to be undertaken
by any Group Member under Environmental Laws and promptly comply with all
orders and directives applicable to any Group Member of all Governmental
Authorities regarding Environmental Laws; provided, however, that
this covenant shall be deemed not violated if the relevant Group Member
promptly challenges in good faith any such order or directive in a manner
consistent with all applicable Environmental Laws and other Requirements of Law
and pursues such challenge or challenges diligently.

 

(c)                                 
Generate,
use, treat, store, release, dispose of, and otherwise manage Materials of
Environmental Concern in a manner that would not reasonably be expected to
result in a material liability to any Group Member or to materially affect any
real property owned or leased by any of them; and take reasonable efforts to
prevent any other Person from generating, using, treating, storing, releasing,
disposing of, or otherwise managing Materials of Environmental Concern in a
manner that could reasonably be expected to result in a material liability to,
or materially affect any real property owned or operated by, any Group
Member.  For purposes of this Section 5.12(c), noncompliance with the
foregoing shall be deemed not to constitute a breach of this covenant, provided,
that, upon learning of any actual or suspected noncompliance, the Borrower
shall promptly undertake reasonable efforts to remove such Materials of
Environmental Concern or otherwise remediate them in a manner consistent with
applicable Environmental Law.

 

(d)                                
Maintain,
update as appropriate, and implement in all material respects an ongoing
program reasonably designed to ensure that all the properties and operations of
the Group Members are regularly and reasonably reviewed by competent
professionals to identify and promote compliance with and to reasonably and
prudently manage any liabilities or potential liabilities under any
Environmental Law that may affect any Group Member, including, without
limitation, compliance and liabilities relating to:  discharges to air and
water; acquisition, transportation, storage and use of hazardous materials;
waste disposal; repair, maintenance and improvement of properties; employee
health and safety; species protection; and recordkeeping.

 

ARTICLE VI

 

Negative Covenants

 

Each of Holdings and the
Borrower covenants and agrees with each Lender that, so long as this Agreement
shall remain in effect and until the Commitments have been terminated and the
principal of and interest on each Loan, all Fees and all other expenses or
amounts payable under any Loan Document have been paid in full and all Letters
of Credit have been cancelled or have expired and all amounts drawn thereunder
have been reimbursed in full, unless the Required Lenders shall otherwise
consent in writing, neither Holdings nor the Borrower will, nor will they cause
or permit any of the Material Subsidiaries to:

 

               
SECTION 6.1.  Indebtedness. 
Incur, create, assume or permit to exist any Indebtedness, except:

 

 

62

 

(a)                                 
Indebtedness existing
on the date hereof and set forth in Schedule 6.1, including in the case of
lines of credit the maximum amount of Indebtedness permitted to be incurred
thereunder;

 

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

 

(c)                                 
intercompany
Indebtedness of Holdings, the Borrower and the Subsidiaries to the extent
permitted by Section 6.4(c);

 

(d)                                
Indebtedness of the
Borrower or any Subsidiary incurred to finance the acquisition, construction or
improvement of any fixed or capital assets, and extensions, renewals and
replacements of any such Indebtedness that do not increase the outstanding
principal amount thereof (plus the amount of any interest, premiums or
penalties required to be paid thereon plus fees and expenses associated
therewith); provided, that (i) such Indebtedness is incurred prior to or
within 120 days after such acquisition or the completion of such construction
or improvement and (ii) the aggregate principal amount of Indebtedness
permitted by this Section 6.1(d), when combined with the aggregate
principal amount of all Capital Lease Obligations and Synthetic Lease
Obligations incurred pursuant to Section  6.1(e), shall not exceed
$25,000,000 at any time outstanding;

 

(e)                                 
Capital Lease
Obligations and Synthetic Lease Obligations in an aggregate principal amount,
when combined with the aggregate principal amount of all Indebtedness incurred
pursuant to Section 6.1(d), not in excess of $25,000,000 at any time
outstanding;

 

(f)                                   
Indebtedness under
completion guarantees, performance or surety bonds or with respect to workers’
compensation claims, in each case incurred in the ordinary course of business;

 

(g)                                
(i) Indebtedness of
the Borrower in respect of the Senior Subordinated Notes in an aggregate
principal amount not to exceed $400,000,000 at any time outstanding; provided,
however, that additional Indebtedness of the Borrower in respect of the
Senior Subordinated Notes may be incurred so long as (w) the Borrower complies
with the provisions of Section 2.13(d), (x) no Default or Event of Default
shall have occurred or shall result therefrom, (y) the Borrower will be in Pro
Forma Compliance and (z) to the extent the Borrower uses the proceeds of such
Indebtedness to finance the cash consideration payable in a Permitted
Acquisition (including the refinancing of Indebtedness of the Acquired Entity
and the payment of related fees and expenses), the principal amount of such
Indebtedness incurred, when combined with the aggregate principal amount of
Indebtedness incurred pursuant to Section 6.1(i), shall not exceed
$250,000,000 at any time outstanding; and (ii) Guarantees of any Guarantor in
respect of such Indebtedness, provided that such Guarantees are
subordinated to the same extent as the obligations of the Borrower in respect
of the Senior Subordinated Notes;

 

(h)                                
Indebtedness acquired
or assumed by the Borrower or any Subsidiary in connection with any Permitted
Acquisition in an aggregate principal amount not in excess of $20,000,000 at
any time outstanding; provided, that such Indebtedness existed at the
time of such Permitted Acquisition and was not created in connection therewith
or in contemplation thereof;

 

(i)                                    
unsecured
subordinated Indebtedness of Holdings or the Borrower (which may be Guaranteed
by any Loan Party on a subordinated basis) the proceeds of which are used to
finance the cash consideration payable in a Permitted Acquisition (including
the refinancing of Indebtedness of the Acquired Entity and the payment of
related fees and expenses) in an aggregate principal amount, when combined with
the aggregate principal amount of all

 

 

63

 

Indebtedness incurred pursuant to the proviso to
Section 6.1(g)(i) (to the extent the proceeds thereof are not required to
be applied to the prepayment of outstanding Term Loans pursuant to
Section 2.13(d)), not in excess of $250,000,000 at any time outstanding; provided,
that such Indebtedness (i) matures after the six-month anniversary of the Term
Loan Maturity Date, (ii) requires no scheduled payment of principal prior to
its maturity, (iii)  contains subordination provisions that are no less
favorable to the Lenders than the subordination provisions contained in the
Senior Subordinated Note Indenture and (iv) does not require the issuer thereof
or any other obligor thereon to maintain any specified financial condition or
performance (other than as a condition to the taking of certain actions);

 

(j)                                    
additional unsecured
subordinated Indebtedness of Holdings or the Borrower (which may be Guaranteed
by any Loan Party on a subordinated basis) the proceeds of which are used to
prepay outstanding Term Loans pursuant to Section 2.13(d); provided,
that such Indebtedness (i) matures after the six-month anniversary of the Term
Loan Maturity Date, (ii) requires no scheduled payment of principal prior to
its maturity, (iii) contains subordination provisions that are no less
favorable to the Lenders than the subordination provisions contained in the
Senior Subordinated Note Indenture and (iv) does not require the issuer thereof
or any other obligor thereon to maintain any specified financial condition or
performance (other than as a condition to the taking of certain actions);

 

(k)                                 
Indebtedness under or
in respect of Hedging Agreements that are not speculative in nature;

 

(l)                                    
Indebtedness incurred
to extend, renew or refinance any Indebtedness described in
Section 6.1(a), (d), (g), (h), (i) or (j) (“Refinancing Indebtedness”);
provided, that (i) such Refinancing Indebtedness is in an aggregate principal
amount not greater than the aggregate principal amount of the Indebtedness
being extended, renewed or refinanced, plus the amount of any interest,
premiums or penalties required to be paid thereon plus fees and expenses
associated therewith, (ii) such Refinancing Indebtedness has a later or equal
final maturity and a longer or equal weighted average life to maturity than the
Indebtedness being extended, renewed or refinanced, (iii) if the Indebtedness
being extended, renewed or refinanced is subordinated to the Obligations, the
Refinancing Indebtedness is subordinated to the Obligations on terms no less
favorable to the Lenders than the Indebtedness being extended, renewed or
refinanced, (iv) only the obligors in respect of the Indebtedness being extended,
renewed or refinanced may become obligated with respect to such Refinancing
Indebtedness, (v) the security interest(s) granted in connection with such
Refinancing Indebtedness, if any, shall not cover more collateral, in any
material respect, than the security interest(s), if any, granted in connection
with the Indebtedness being refinanced and (vi) the non-economic covenants,
events of default, remedies and other provisions of the Refinancing
Indebtedness, when taken as a whole, shall be materially no less favorable to
the Lenders than those contained in the Indebtedness being extended, renewed or
refinanced;

 

(m)                              
Indebtedness arising
from the honoring by a bank or other financial institution of a check, draft or
similar instrument inadvertently drawn against insufficient funds in the
ordinary course of business, so long as such Indebtedness is extinguished
within three Business Days of the incurrence thereof;

 

(n)                                
Indebtedness of
Foreign Subsidiaries not to exceed $50,000,000 in the aggregate at any one
time;

 

 

64

 

(o)                                
Indebtedness of
Holdings incurred for the purpose of making Restricted Payments or purchasing
stock of management so long as such Indebtedness (i) matures at least six
months after the Term Loan Maturity Date, (ii) requires no scheduled payment of
principal prior to maturity, (iii) does not permit any payments in cash of
interest or other amounts in respect of the principal thereof and (iv) is
subordinated to the prior payment in full of the Obligations on terms
reasonably acceptable to the Administrative Agent;

 

(p)                                
Cash Management
Obligations and other Indebtedness in respect of netting services, overdraft
protections and similar arrangements in each case in connection with deposit
accounts;

 

(q)                                
Indebtedness
consisting of (i) the financing of insurance premiums or (ii) take-or-pay
obligations contained in supply arrangements, in each case, in the ordinary
course of business;

 

(r)                                   
Indebtedness incurred
by the Borrower or any of its Subsidiaries constituting reimbursement
obligations with respect to letters of credit issued in the ordinary course of
business, including without limitation letters of credit in respect of workers
compensation claims, health, disability or other employee benefits or property,
casualty or liability insurance or self-insurance or other Indebtedness with
respect to reimbursement-type obligations regarding workers compensation
claims; provided, that (i) upon the drawing of such letters of credit or
the incurrence of such Indebtedness, such obligations are reimbursed within 30
days following such drawing or incurrence and (ii) such letters of credit are
not provided to secure the repayment of other Indebtedness of Holdings, the
Borrower or any of their respective Subsidiaries; and

 

(s)                                 
other Indebtedness of
the Borrower or the Domestic Subsidiaries in an aggregate principal amount not
exceeding $50,000,000 at any time outstanding.

 

               
SECTION 6.2.  Liens. 
Create, incur, assume or permit to exist any Lien on any property or assets
(including Equity Interests or other securities of any person, including any
Subsidiary) now owned or hereafter acquired by it or on any income or revenues
or rights in respect of any thereof, except:

 

(a)                                 
Liens on property or
assets of the Borrower and its Subsidiaries existing on the date hereof and set
forth in Schedule 6.2; provided, that such Liens shall secure only
those obligations which they secure on the date hereof and any extensions,
renewals and replacements thereof permitted hereunder;

 

(b)                                
any Lien created
under the Loan Documents;

 

(c)                                 
any Lien existing on
any property or asset prior to the acquisition thereof by the Borrower or any
Subsidiary; provided, that (i) such Lien is not created in contemplation
of or in connection with such acquisition, (ii) such Lien does not apply to any
other property or assets of the Borrower or any Subsidiary and (iii) such Lien
does not materially interfere with the use, occupancy and operation of any
Mortgaged Property;

 

(d)                                
Liens for taxes not
yet due or which are being contested in compliance with Section 5.3;

 

(e)                                 
carriers’,
landlords’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other
like Liens arising in the ordinary course of business and securing obligations
that are not due and payable or which are being contested in compliance with
Section 5.3;

 

 

65

 

(f)                                   
pledges and deposits
made in the ordinary course of business in compliance with workmen’s
compensation, unemployment insurance and other social security laws or
regulations;

 

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

 

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

 

(i)                                    
purchase money
security interests in real property, improvements thereto or equipment
hereafter acquired (or, in the case of improvements, constructed) by the
Borrower or any Subsidiary; provided, that (i) such security interests
secure Indebtedness permitted by Section 6.1, (ii) such security interests
are incurred, and the Indebtedness secured thereby is created, within 120 days
after such acquisition (or construction), and (iii) such security interests do
not apply to any other property or assets of the Borrower or any Subsidiary (it
being agreed that transactions with the same vendor or any Affiliate of such
vendor may be cross-collateralized);

 

(j)                                    
Liens arising out of
judgments or awards in respect of which Holdings, the Borrower or any of the
Subsidiaries shall in good faith be prosecuting an appeal or proceedings for
review in respect of which there shall be secured a subsisting stay of
execution pending such appeal or proceedings; provided, that the
aggregate amount of all such judgments or awards (and any cash and the fair
market value of any property subject to such Liens) does not exceed $10,000,000
at any time outstanding;

 

(k)                                 
any interest or title
of a licensor, lessor or sublessor under any license or lease agreement
pursuant to which rights are granted to the Borrower or any Subsidiary;

 

(l)                                    
licenses, leases or
subleases granted by the Borrower or any Subsidiary to third persons in the
ordinary course of business not interfering in any material respect with the
business of the Borrower or any Subsidiary;

 

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

 

(n)                                
restrictions imposed
in the ordinary course of business on the sale or distribution of designated
inventory pursuant to agreements with customers under which such inventory is
consigned by the customer or such inventory is designated for sale to one or
more customers;

 

(o)                                
(i) Liens on the
assets of a Foreign Subsidiary that is not a Subsidiary Guarantor securing
Indebtedness permitted to be incurred by such Foreign Subsidiary pursuant to
Section 6.1(m) and (ii) other Liens on the assets of a Foreign Subsidiary
that is not a Subsidiary Guarantor securing Indebtedness by such Foreign
Subsidiary not, in the case of this clause (ii), in excess of $1,000,000;

 

 

66

 

(p)                                
any interest of a
lessor under Liens arising from precautionary UCC financing statement filings
regarding leases entered into by the Borrower or any of its Subsidiaries in the
ordinary course of business;

 

(q)                                
Liens arising out of
conditional sale, title retention, consignment or similar arrangements for the
sale of goods entered into by the Borrower or any of its Subsidiaries in the
ordinary course of business;

 

(r)                                   
Liens deemed to exist
in connection with investments in repurchase agreements permitted under this
Agreement;

 

(s)                                 
Liens that are
contractual or statutory setoff rights arising in the ordinary course of
business with financial institutions, relating to pooled deposit accounts or
sweep accounts of Holdings and its Subsidiaries to permit satisfaction of
overdraft or similar obligations incurred in the ordinary course of business or
relating to purchase orders or other agreements entered into with customers of
Holdings or any of its Subsidiaries in the ordinary course of business;

 

(t)                                   
Liens solely on any
cash earnest money deposits by the Borrower or any of its Subsidiaries in
connection with any letter of intent or purchase agreement permitted under this
Agreement; and

 

(u)                                
other Liens on the
assets of the Borrower or any Domestic Subsidiary that do not, individually or
in the aggregate, secure obligations (or encumber property with a fair market
value) in excess of $50,000,000 at any one time.

 

               
SECTION 6.3.  Sale and Lease-Back
Transactions.  Enter into any arrangement, directly or
indirectly, with any person whereby it shall sell or transfer any property,
real or personal, used or useful in its business, whether now owned or
hereafter acquired, and thereafter rent or lease such property or other property
which it intends to use for substantially the same purpose or purposes as the
property being sold or transferred unless (a) the sale of such property is
permitted by Section 6.5 and (b) any Capital Lease Obligations, Synthetic
Lease Obligations or Liens arising in connection therewith are permitted by
Sections 6.1 and 6.2, as applicable.

 

               
SECTION 6.4.  Investments, Loans and
Advances.  Purchase, hold or acquire any Equity Interests,
evidences of indebtedness or other securities of, make or permit to exist any
loans or advances to, or make or permit to exist any investment or any other
interest in, any other person, except:

 

(a)                                 
(i) investments by
Holdings, the Borrower and the Subsidiaries existing on the date hereof in the
Equity Interests of the Borrower and the Subsidiaries and (ii) additional
investments by Holdings, the Borrower and the Subsidiaries in the Equity
Interests of the Borrower and the Subsidiaries; provided, that (A) any
such Equity Interests held by a Loan Party shall be pledged pursuant to the
Guarantee and Collateral Agreement (subject to the limitations applicable to
voting stock of a Foreign Subsidiary referred to therein) and (B) the aggregate
amount of investments by Loan Parties in, and loans and advances by Loan
Parties to, Subsidiaries that are not Loan Parties (other than in connection
with (a) any transfer made to pay off the Existing Credit Agreement and (b) the
Proposed Restructuring) (determined without regard to any write-downs or
write-offs of such investments, loans and advances but taking into account
repayments, redemptions, return of capital, etc.) under this clause (ii) shall
not exceed at any time outstanding the sum of (v) $25,000,000, (w) the
principal amount of any loan the proceeds of which are used to fund Capital
Expenditures in an aggregate amount not to exceed $15,000,000 (provided,
that any such loan made by a Loan Party to a Subsidiary that is not a

 

 

67

 

Loan Party must have a maturity of no greater than,
and must be repaid within, two (2) years from the date of issuance), (x) the
principal amount of any dividend by a Subsidiary that is not a Loan Party to a
Loan Party made in the form of a promissory note payable by such Subsidiary
that is not a Loan Party to such Loan Party (provided, that, in
connection with the issuance of such promissory note, no loans, advances or
other payments were made by such Loan Party to such Subsidiary that is not a
Loan Party), (y) the amount of any investment or principal amount of any
advance funded with the proceeds of Equity Interests issued by Holdings and (z)
the amount of any investment or principal amount of any advance the proceeds of
which are used to fund a Permitted Acquisition and which such Loan Party
obtained through items (I) through (IV) of Section 6.4(g)(iii)(D);

 

(b)                                
Permitted
Investments;

 

(c)                                 
loans or advances
made by the Borrower to any Subsidiary and made by the Borrower or any
Subsidiary to Holdings, the Borrower or any other Subsidiary; provided,
that (i) any such loans and advances made by a Loan Party shall be evidenced by
a promissory note pledged to the Administrative Agent for the ratable benefit
of the Secured Parties pursuant to the Guarantee and Collateral Agreement, (ii)
the amount of such loans and advances made by Loan Parties to Subsidiaries that
are not Loan Parties shall be subject to the limitation set forth in clause (a)
above and (iii) the aggregate amount of outstanding loans and advances made to
Holdings shall not exceed $3,000,000 during any fiscal year of the Borrower or
$15,000,000 at any time during the term of this Agreement; provided,
that the amount of any loans and advances that can be made during any fiscal
year pursuant to clause (iii) above shall be increased by the amount of unused
permitted loans and advances for any preceding fiscal year so long as the
aggregate amount of such loans and advances does not exceed $15,000,000 at any
time during the term of this Agreement;

 

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

 

(e)                                 
the Borrower and the
Subsidiaries may make loans and advances in the ordinary course of business to
their respective employees so long as the aggregate principal amount thereof at
any time outstanding (determined without regard to any write-downs or
write-offs of such loans and advances) shall not exceed $10,000,000 at any time
and advances in the ordinary course of business of payroll payments to
employees;

 

(f)                                   
the Borrower may
enter into Hedging Agreements that are not speculative in nature;

 

(g)                                
the Borrower or any
Subsidiary may acquire all or substantially all the assets of a person or line
of business of such person, or not less than 100% of the Equity Interests
(except for directors’ qualifying shares) of a person (referred to herein as
the “Acquired Entity”); provided, that (i) such acquisition was
not preceded by an unsolicited tender offer for such Equity Interests by, or
proxy contest initiated by, Holdings, the Borrower or any Subsidiary; (ii) the
Acquired Entity shall be a going concern and after giving effect to the
acquisition the Borrower shall be in compliance with Section 6.8; (iii) at
the time of such transaction (A) both before and after giving effect thereto,
no Event of Default or Default shall have occurred and be continuing; (B) the
Borrower would be in Pro Forma Compliance (assuming for purposes of making such
determination with respect to the covenant set forth in Section 6.12 that
the Leverage Ratio is at least 0.25 to 1.00 lower than the Leverage Ratio set
forth therein and in effect at the time such

 

 

68

 

determination is made); (C) after giving effect to
such acquisition, there must be at least $10,000,000 of unused and available
Revolving Credit Commitments; and (D) each Permitted Acquisition shall only
consist of, or be financed with (I) cash and Permitted Investments of the Borrower
and its Subsidiaries, (II) the proceeds of Equity Interests of Holdings, (III)
Incremental Term Loans and (IV) Indebtedness incurred under
Section 6.1(c), (g), (h), (i), (n) and (s) (or any Refinancing
Indebtedness thereof), and (iv) the Borrower shall comply, and shall cause the
Acquired Entity to comply, with the applicable provisions of Section 5.9
and the Security Documents (any acquisition of an Acquired Entity meeting all
the criteria of this Section 6.4(g) being referred to herein as a “Permitted
Acquisition”);

 

(h)                                
the Borrower and its
Subsidiaries may acquire and hold receivables owing to it, if created or
acquired in the ordinary course of business and payable or dischargeable in
accordance with customary trade terms (including the dating of receivables) of
the Borrower or such Subsidiary;

 

(i)                                    
Holdings may acquire
and hold obligations of one or more officers or other employees of Holdings or
its subsidiaries in connection with such officers’ or employees’ acquisition of
Equity Interests of Holdings;

 

(j)                                    
the Borrower and its
Subsidiaries may acquire and hold non-cash consideration issued by the
purchaser of assets in connection with a sale of such assets to the extent
permitted by Section 6.5;

 

(k)                                 
investments, loans
and advances existing on the date hereof and set forth in Schedule 6.4;
and

 

(l)                                    
investments by the Borrower
or any Subsidiary in joint ventures or similar arrangements in an aggregate
amount at any time outstanding not to exceed $5,000,000;

 

(m)                              
in addition to
investments permitted by paragraphs (a) through (l) above, additional
investments, loans and advances by the Borrower and the Subsidiaries so long as
the aggregate amount invested, loaned or advanced pursuant to this paragraph
(m) (determined without regard to any write-downs or write-offs of such
investments, loans and advances but taking into account repayments,
redemptions, return of capital etc.) does not exceed (i) $75,000,000 in the
aggregate at any one time outstanding or (ii) $35,000,000 in the aggregate at
any one time outstanding with respect to investments in foreign joint ventures
or similar arrangements (provided, that clause (ii) above shall not
limit investments in Foreign Subsidiaries).

 

               
SECTION 6.5.  Mergers,
Consolidations, Sales of Assets and Acquisitions. 
(b)  Merge into or consolidate with any other person, or permit any other
person to merge into or consolidate with it, or sell, transfer, lease or
otherwise dispose of (in one transaction or in a series of transactions) all or
substantially all of the assets (whether now owned or hereafter acquired) of
the Borrower or less than all the Equity Interests of any Subsidiary, or
purchase, lease or otherwise acquire (in one transaction or a series of
transactions) all or any substantial part of the assets of any other person,
except that (i) the Borrower and any Subsidiary may purchase and sell
inventory, materials and equipment in the ordinary course of business and may
license intellectual property in the ordinary course of business and (ii) if at
the time thereof and immediately after giving effect thereto no Event of
Default or Default shall have occurred and be continuing (u) any Subsidiary may
change its form of organization in compliance with Section 5.6(a), if
applicable, (v) any Person may make investments and advances permitted by Section 6.4,
(w) any wholly owned Subsidiary may merge into the Borrower in a transaction in
which the Borrower is the surviving corporation, (x) any

 

 

69

 

wholly owned Subsidiary may merge into or consolidate
with any other wholly owned Subsidiary in a transaction in which the surviving
entity is a wholly owned Subsidiary and no person other than the Borrower, a
wholly owned Subsidiary or the De Minimis Holders receives any consideration (provided,
that if any party to any such transaction is a Loan Party, the surviving entity
of such transaction shall be a Loan Party), (y) the Borrower and the
Subsidiaries may make Permitted Acquisitions and (z) any Subsidiary of the
Borrower may merge with another person in a transaction constituting an Asset
Sale permitted hereunder.

 

(b)                                
Engage
in any Asset Sale otherwise permitted under paragraph (a) above unless (i) such
Asset Sale is for consideration at least 75% of which is cash (other than in
the case of a like-kind exchange or trade-in of one asset for another asset
used or useful in the business of the Borrower and its Subsidiaries), (ii) such
consideration is at least equal to the fair market value of the assets being
sold, transferred, leased or disposed of and (iii) other than in the case of
the sale of one or more parcels of real property in connection with the
relocation of the operations of the Borrower or any Subsidiary, the fair market
value of all assets sold, transferred, leased or disposed of pursuant to this
paragraph (b) shall not exceed $35,000,000 in any fiscal year.

 

               
SECTION 6.6.  Restricted Payments;
Restrictive Agreements.  (a)  Declare or make, or
agree to declare or make, directly or indirectly, any Restricted Payment
(including pursuant to any Synthetic Purchase Agreement but excluding any
Restricted Payment made to consummate the Transactions), or incur any
obligation (contingent (unless the contingency is the repayment of the
Obligations or receipt of consent from the requisite lenders under this
Agreement) or otherwise) to do so; provided, however, that:

 

(i) any Subsidiary may declare and pay dividends or
make other distributions ratably to its equity holders;

 

(ii) so long as no Event of Default or Default shall
have occurred and be continuing or would result therefrom, Holdings may (and
the Borrower may make distributions to Holdings to enable Holdings to
repurchase or make distributions to Parent to enable it to) repurchase Equity
Interests of Holdings or Parent owned by employees of Holdings or Parent, the
Borrower or the Subsidiaries or make payments to employees of Holdings or
Parent, the Borrower or the Subsidiaries upon termination of employment of such
employees (including as a result of retirement or severance) in connection with
the exercise of stock options, stock appreciation rights or similar equity
incentives or equity based incentives pursuant to management incentive plans or
in connection with the death or disability of such employees in an aggregate
amount not to exceed $5,000,000 in any fiscal year (it being agreed that (A)
any amount not utilized in any fiscal year may be carried forward and utilized
in any subsequent fiscal year, (B) such amount shall be increased by the amount
of cash proceeds received by Holdings from the sale of Equity Interests of
Holdings or Parent to such employees after the Closing Date to the extent such
proceeds are contributed directly or indirectly to the Borrower as common
equity and (C) any proceeds of key man life insurance actually received by the
Borrower or Holdings may be used or distributed by the Borrower or Holdings for
purposes of such repurchases without regard to such amount);

 

(iii) so long as no Event of Default under clause (b)
or (c) of Article VII shall have occurred and be continuing, the Borrower
may pay dividends to Holdings to permit Holdings to pay management fees in an
aggregate amount not to exceed $3,000,000 per fiscal year; provided,
that (a) any such amount referred to above, if not so expended in the fiscal
year for which it is permitted, may be carried over for expenditure in the next
two succeeding fiscal years and (b) management fees paid pursuant to this
clause (iii) during any fiscal year shall be deemed made, first, in
respect of amounts carried over from the fiscal year two years prior thereto
pursuant to

 

 

70

 

clause (a) above, second, in respect of amounts
carried over from the immediately prior fiscal year pursuant to clause (a)
above, and, third, in respect of amounts permitted for such fiscal year
as provided above;

 

(iv) the Borrower and Holdings may make Restricted
Payments to Holdings and/or Parent  (x) the proceeds of which shall be
applied by Holdings and/or Parent to pay out of pocket general corporate and
overhead expenses incurred by Holdings and/or Parent not to exceed $5,000,000
during any fiscal year of the Borrower and (y) in the form of Tax Payments, to
the extent directly attributable to (or arising as a result of) the operations
of the Borrower and the Subsidiaries; provided, however, that (A)
the amount of such dividends shall not exceed the amount that the Borrower and
the Subsidiaries would be required to pay in respect of Federal, State and
local taxes were the Borrower and the Subsidiaries to pay such taxes as
stand-alone taxpayers, (B) all Restricted Payments made to Holdings and/or
Parent pursuant to this clause (iv) are used by Holdings and/or Parent for the
purposes specified herein within 20 days of the receipt thereof and (C) in the
case of any Restricted Payment made to Holdings pursuant to this clause (iv),
Holdings owns, beneficially and of record, 100% of the issued and outstanding
Equity Interests of the Borrower at the time of such Restricted Payment;

 

(v) in addition to the foregoing Restricted Payments
and so long as no Default or Event of Default shall have occurred and be
continuing or would result therefrom, the Borrower may make additional
Restricted Payments to Holdings the proceeds of which may be utilized by
Holdings to make additional Restricted Payments, in an aggregate amount not to
exceed 100% of Cumulative Excess Cash Flow that is Not Otherwise Applied if the
Leverage Ratio as of the last day of the immediately preceding four fiscal
quarters (after giving pro forma effect to such additional Restricted Payments)
was less than 3.25 to 1.00;

 

(vi) Holdings may make Restricted Payments in any
fiscal year to the extent made with the proceeds of an incurrence of
Indebtedness or equity issuance (so long as such equity issuance is to any
person other than a Loan Party) permitted hereunder; and

 

(vii) Holdings, the Borrower and its Subsidiaries may
make additional Restricted Payments not in excess of $10,000,000 in the
aggregate so long as no Default or Event of Default shall have occurred and be
continuing or would result therefrom.

 

Notwithstanding the foregoing, in the event that the
failure to comply with any Financial Performance Covenant is cured through the
exercise of the Cure Right set forth in Article VII,
Section 6.6(a)(iii), (v) (vi) and (vii) above shall only be available to
the Loan Parties if (x) the Required Lenders consent to the relevant Restricted
Payment pursuant to Section 6.6(a)(iii), (v), (vi) or (vii) or (y) the
Borrower is in compliance with all Financial Performance Covenants for the end
of any two consecutive fiscal quarters following the fiscal quarter in which
the Borrower exercised its Cure Right.

 

(b)                                
Enter
into, incur or permit to exist any agreement or other arrangement that
prohibits, restricts or imposes any condition upon (i) the ability of Holdings,
the Borrower or any Subsidiary to create, incur or permit to exist any Lien
upon any of its property or assets to secure the Obligations or (ii) the
ability of any Subsidiary to pay dividends or other distributions with respect
to any of its Equity Interests or to make or repay loans or advances to the
Borrower or any other Subsidiary or to Guarantee Indebtedness of the Borrower
or any other Subsidiary; provided, that (A) the foregoing shall not
apply to restrictions and conditions imposed by law or by any Loan Document or
the Senior Subordinated Note Indenture, (B) the foregoing shall not apply to
customary restrictions and conditions contained in agreements relating to the
sale of stock or assets of a Subsidiary pending such sale, provided,
such restrictions and conditions apply only to the Subsidiary that is to be
sold and such sale is permitted

 

 

71

 

hereunder, (C) clause (i) of the
foregoing shall not apply to restrictions or conditions imposed by any
agreement relating to secured Indebtedness permitted by this Agreement if such
restrictions or conditions apply only to the property or assets securing such
Indebtedness, (D) clause (i) of the foregoing shall not apply to customary
provisions in leases and other contracts restricting the assignment thereof and
(E) clause (i) and (ii) of the foregoing shall not apply to restrictions and
conditions imposed (1) under debt agreements of Foreign Subsidiaries incurred
under Section 6.1(h) and Section 6.1(n) or (2) under contracts with
customers entered into the ordinary course of business that contain
restrictions on cash or other deposits or net worth.

 

               
SECTION 6.7.  Transactions with
Affiliates.  Except for transactions by or among Loan
Parties, sell or transfer any property or assets to, or purchase or acquire any
property or assets from, or otherwise engage in any other transactions with,
any of its Affiliates, except that (a) the Borrower or any Subsidiary may
engage in any of the foregoing transactions at prices and on terms and
conditions not less favorable to the Borrower or such Subsidiary than could be
obtained on an arm’s-length basis from unrelated third parties, (b) dividends
and purchases may be paid and effected to the extent provided in
Section 6.6, (c) the Loan Parties may perform their respective obligations
under the terms of the Tax Sharing Agreement or any other agreement with any of
its Affiliates in effect on the Closing Date and set forth on
Schedule 6.7, or any amendments thereto that do not materially increase
the Loan Parties’ obligations thereunder, (d) reasonable fees and compensation
may be paid to, and indemnities may be provided on behalf of, officers,
directors and employees of, and consultants (other than the Sponsor) to,
Holdings, the Borrower and the Subsidiaries, as determined by the Board of
Directors or appropriate officers of the Borrower in good faith, (e) securities
may be issued and other payments, awards or grants (in cash, equity securities
or otherwise) may be made pursuant to, or with respect to the funding of,
employment arrangements, stock options and stock ownership plans approved by
the Board of Directors of the Borrower in good faith,  (f) the Loan
Parties may perform their respective obligations under the terms of any
registration rights agreement, (g) loans, investments and advances may be made
to the extent permitted by Sections 6.1 and 6.4, (h) Restricted Payments
permitted to be made pursuant to Section 6.6, (i) equity securities may be
sold, (j) fees may be paid to the Sponsor in respect of any acquisitions or
dispositions with respect to which the Sponsor acts as an adviser to Holdings,
the Borrower or any Subsidiary in an amount not to exceed 1% of the value of
such transaction.

 

               
SECTION 6.8.  Business of Holdings,
Borrower and Subsidiaries.  (a)  With respect to
Holdings, engage in any business activities or have any assets or liabilities
other than (i) its ownership of the Equity Interests of the Borrower and
liabilities incidental thereto, including its liabilities hereunder and
pursuant to the Guarantee and Collateral Agreement and (ii) Indebtedness
permitted under Section 6.1.

 

(b)                                
With
respect to the Borrower and its Subsidiaries, engage at any time in any
business or business activity other than the business currently conducted by
them and business activities that constitute a reasonable extension,
development or expansion thereof (including engaging in engineered components
businesses not within the aerospace industry) reasonably incidental thereto.

 

               
SECTION 6.9.  Other Indebtedness;
Material Agreements.  (a)  Permit any supplement,
modification or amendment of any joint venture or similar agreement or any
indenture, instrument or agreement pursuant to which any Material Indebtedness
of Holdings, the Borrower or any of the Subsidiaries is outstanding if the
effect of such supplement, modification or amendment as a whole would
materially increase the obligations (including, without limitation, the pricing
thereof) of the obligor or confer additional material rights on the holder of
such Indebtedness (or the counterparty to the joint venture or similar
agreement, as applicable) in a manner that would be, or could reasonably be
expected to be, materially detrimental to the Borrower or materially adverse to the interests of the
Lenders, as determined in good faith by the Borrower.

 

 

72

 

(b)                                
(i)
Make any distribution, whether in cash, property, securities or a combination
thereof in excess of $15,000,000 in the aggregate during the term of this
Agreement, other than regular scheduled payments of principal and interest as
and when due (to the extent not prohibited by applicable subordination
provisions), in respect of, or pay, or offer or commit to pay, or directly or
indirectly (including pursuant to any Synthetic Purchase Agreement) redeem,
repurchase, retire or otherwise acquire for consideration, or set apart any sum
for the aforesaid purposes, any subordinated Indebtedness (provided, however, that the foregoing shall
not prohibit any refinancings of Indebtedness in accordance with
Section 6.1(l) or the conversion of any such Indebtedness into equity
securities) or (ii) pay in cash any amount in respect of any Indebtedness or
preferred Equity Interests that may at the obligor’s option be paid in kind or
in other securities.

 

               
SECTION 6.10.  Capital Expenditures. 
(j)  Permit the aggregate amount of Capital Expenditures made by the
Borrower and the Subsidiaries in any fiscal year of the Borrower to exceed the
sum of (i) the amount set forth below for such fiscal year as the “Capital
Expenditure Base Amount” for such year, and (ii) the Acquired CapEx Amount:

 

	
  Fiscal
  Year Ended

  	
   

  	
  Capital
  Expenditure Base Amount

  	
   

  
	
  January 1, 2005

  	
   

  	
  $45,000,000

  	
   

  
	
  December 31, 2005

  	
   

  	
  $45,000,000

  	
   

  
	
  December 30, 2006

  	
   

  	
  $45,000,000

  	
   

  
	
  December 29, 2007

  	
   

  	
  $45,000,000

  	
   

  
	
  January 3, 2009

  	
   

  	
  $45,000,000

  	
   

  
	
  January 2, 2010

  	
   

  	
  $45,000,000

  	
   

  
	
  January 1, 2011

  	
   

  	
  $45,000,000

  	
   

  
	
  December 31, 2011

  	
   

  	
  $45,000,000

  	
   

  

 

For purposes of this
Section 6.10, the “Acquired CapEx Amount”, with respect to any
Acquired Entity, shall equal the product of (x) the aggregate amount of Capital
Expenditures made by the Acquired Entity in the two fiscal years prior to the
date of the Permitted Acquisition and (y) 0.50.

 

(b)                                
The
amount of permitted Capital Expenditures set forth in paragraph (a) above (as
adjusted in accordance with the terms thereof) in respect of any fiscal year
commencing with the fiscal year ending on January 1, 2005, shall be
increased (but not decreased) by the amount of unused permitted Capital
Expenditures for the two immediately preceding fiscal years; provided,
that Capital Expenditures made pursuant to this Section during any fiscal
year shall be deemed made, first, in respect of amounts carried over
from the fiscal year two years prior thereto pursuant to the preceding
sentence, second, in respect of amounts carried over from the
immediately prior fiscal year pursuant to the preceding sentence, and, third,
in respect of amounts permitted for such fiscal year as provided above.

 

               
SECTION 6.11.  Interest Coverage
Ratio.  Permit the Interest Coverage Ratio for any period
of four consecutive fiscal quarters, in each case taken as one accounting period,
ending on a date or during any period set forth below to be less than the ratio
set forth opposite such date or period below:

 

 

73

 

	
  Date or
  Period

  	
   

  	
  Ratio

  	
   

  
	
  October 2, 2004 through July 1, 2006

  	
   

  	
  2.25 to 1.00

  	
   

  
	
  September 30, 2006 through January 3, 2009

  	
   

  	
  2.50 to 1.00

  	
   

  
	
  April 4, 2009 through January 2, 2010

  	
   

  	
  2.75 to 1.00

  	
   

  
	
  April 3, 2010 and each fiscal quarter
  thereafter

  	
   

  	
  3.00 to 1.00

  	
   

  

 

               
SECTION 6.12.  Maximum Leverage
Ratio.  Permit the Leverage Ratio at the end of any fiscal
quarter ending on a date or during a period set forth below to be greater than
the ratio set forth opposite such date or period below.

 

	
  Date or
  Period

  	
   

  	
  Ratio

  	
   

  
	
  October 2, 2004 through July 2, 2005

  	
   

  	
  6.25 to 1.00

  	
   

  
	
  October 1, 2005

  	
   

  	
  6.00 to 1.00

  	
   

  
	
  December 31, 2005 through July 1, 2006

  	
   

  	
  5.75 to 1.00

  	
   

  
	
  September 30, 2006 through December 30,
  2006

  	
   

  	
  5.50 to 1.00

  	
   

  
	
  March 31, 2007 through June 30, 2007

  	
   

  	
  5.25 to 1.00

  	
   

  
	
  September 29, 2007

  	
   

  	
  5.00 to 1.00

  	
   

  
	
  December 29, 2007 through March 29, 2008

  	
   

  	
  4.75 to 1.00

  	
   

  
	
  June 28, 2008 through September 27, 2008

  	
   

  	
  4.50 to 1.00

  	
   

  
	
  January 3, 2009 through October 3, 2009

  	
   

  	
  4.25 to 1.00

  	
   

  
	
  January 2, 2010 and each fiscal quarter
  thereafter

  	
   

  	
  4.00 to 1.00

  	
   

  

 

               
SECTION 6.13.  Fiscal Year. 
With respect to Holdings and the Borrower, change their fiscal year-end to a
date other than the end of the 52 or 53-week period ending the Saturday nearest
to December 31.

 

               
SECTION 6.14.  Amendments to
Acquisition Documentation.  (a)  Amend, supplement or
otherwise modify (pursuant to a waiver or otherwise) the terms and conditions
of the indemnities and licenses furnished to the Borrower or any of its
Subsidiaries pursuant to the Acquisition Documentation such that after giving
effect thereto such indemnities or licenses shall be materially less favorable
to the interests of the Loan Parties or the Lenders with respect thereto or (b)
otherwise amend, supplement or otherwise modify the terms and conditions of the
Acquisition Documentation or any such other documents except for any such
amendment, supplement or modification that (i) becomes effective after the
Closing Date and (ii) could not reasonably be expected to have a Material
Adverse Effect.

 

 

74

 

ARTICLE VII

 

Events of Default

 

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

 

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

 

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

 

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

 

(d)                                
default
shall be made in the due observance or performance by Holdings, the Borrower or
any Subsidiary of any covenant, condition or agreement contained in
Section 5.1(a), 5.5(a) or in Article VI;

 

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

 

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

 

(g)                                
an
involuntary proceeding shall be commenced or an involuntary petition shall be
filed in a court of competent jurisdiction seeking (i) relief in respect of
Holdings, the Borrower or any Material Subsidiary, or of a substantial part of
the property or assets of Holdings, the Borrower or a Material Subsidiary,
under Title 11 of the United States Code, as now constituted or hereafter
amended, or any other Federal, state or foreign bankruptcy, insolvency,
receivership or similar law, (ii) the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for Holdings, the
Borrower or any Material Subsidiary or for a substantial part of the property
or assets of Holdings, the Borrower or a Subsidiary or (iii) the winding-up or
liquidation of Holdings, the Borrower or any Material Subsidiary; and such
proceeding or petition shall continue undismissed for 60 days or an order or
decree approving or ordering any of the foregoing shall be entered;

 

 

75

 

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

 

(i)                                    
one
or more judgments for the payment of money in an aggregate amount in excess of
$10,000,000 (net of amounts covered by independent third party insurance as to
which the insurer has been notified of such judgment or order and does not deny
coverage and of amounts covered by an indemnity from a Person that, in the
reasonable judgment of the Administrative Agent, is creditworthy) from a
party  shall be rendered against Holdings, the Borrower, any Material
Subsidiary or any combination thereof and the same shall remain undischarged
for a period of 30 consecutive days during which execution shall not be
effectively stayed, or any action shall be legally taken by a judgment creditor
to levy upon assets or properties of Holdings, the Borrower or any Material
Subsidiary to enforce any such judgment;

 

(j)                                    
an
ERISA Event shall have occurred that, in the opinion of the Required Lenders,
when taken together with all other ERISA Events that have occurred, could
reasonably be expected to result in liability of the Borrower and its ERISA
Affiliates in an aggregate amount exceeding $10,000,000;

 

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

 

(l)                                    
any
security interest in any material item of Collateral purported to be created by any Security Document
shall cease to be, or shall be asserted by the Borrower or any other Loan Party
not to be, a valid, perfected, first priority (except as otherwise expressly
provided in this Agreement or such Security Document) security interest in the
securities, assets or properties covered thereby, except to the extent that any
such loss of perfection or priority results from the failure of the
Administrative Agent to maintain possession of certificates representing
securities pledged under the Pledge Agreement and except to the extent that
such loss is covered by a lender’s title insurance policy and the related
insurer shall not have denied or disclaimed in writing that such loss is
covered by such title insurance policy;

 

(m)                              
the
Indebtedness under the Senior Subordinated Notes or any Guarantees thereof
shall cease, for any reason, to be validly subordinated to the Obligations, as
provided in the Senior Subordinated Note Indenture, or any Loan Party or any
Affiliate of any Loan Party shall so assert; or

 

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

 

then, and in every such event (other than an event
with respect to Holdings or the Borrower described in paragraph (g) or (h) (i)
- (v) above), and at any time thereafter during the continuance of such event,
the Administrative Agent may, and at the request of the Required Lenders shall,
by notice to the Borrower, take either or both of the following actions, at the
same or different times:  (i) terminate forthwith the Commitments and (ii)
declare the Loans then outstanding to be forthwith due and payable in whole or
in 

 

 

76

 

part, whereupon the principal of the Loans so declared
to be due and payable, together with accrued interest thereon and any unpaid
accrued Fees and all other liabilities of the Borrower accrued hereunder and
under any other Loan Document, shall become forthwith due and payable, without
presentment, demand, protest or any other notice of any kind, all of which are
hereby expressly waived by the Borrower, anything contained herein or in any
other Loan Document to the contrary notwithstanding; and in any event with
respect to Holdings or the Borrower described in paragraph (g) or (h) (i) - (v)
above, the Commitments shall automatically terminate and the principal of the
Loans then outstanding, together with accrued interest thereon and any unpaid
accrued Fees and all other liabilities of the Borrower accrued hereunder and
under any other Loan Document, shall automatically become due and payable,
without presentment, demand, protest or any other notice of any kind, all of
which are hereby expressly waived by the Borrower, anything contained herein or
in any other Loan Document to the contrary notwithstanding.

 

Notwithstanding anything to the contrary contained in
this Article VII, in the event that the Borrower would otherwise fail to
comply with the requirements of Sections 6.11 or 6.12 (each, a “Financial
Performance Covenant”) at the end of any fiscal quarter, at any time within
ten days after the date on which a Compliance Certificate must be delivered for
the end of such fiscal quarter or fiscal year, as applicable, Holdings shall
have the right, exercisable at any time during the term of this Agreement
(provided that it may not be exercised with respect to more than two fiscal
quarters during any consecutive four fiscal quarter period), to issue Permitted
Cure Securities (as defined below) for cash or otherwise receive cash contributions
to the capital of Holdings, and to contribute any such cash to the capital of
Borrower (the “Cure Right”), and upon the receipt by Borrower of such
cash (the “Cure Amount”) pursuant to the exercise by Holdings of such
Cure Right, the Financial Performance Covenants shall be recalculated giving
effect to the following pro forma adjustments:

 

(i)                    
Consolidated EBITDA
shall be increased solely for the purpose of measuring the Financial
Performance Covenants and not for any other purpose under this Agreement, by an
amount equal to the Cure Amount; and

 

(ii)                 
if, after giving
effect to the foregoing recalculations, the Borrower shall then be in
compliance with the requirements of all Financial Performance Covenants, the
Borrower shall be deemed to have satisfied the requirements of the Financial
Performance Covenants as of the relevant date of determination with the same
effect as though there had been no failure to comply therewith at such date,
and the applicable breach or default of any such Financial Performance Covenant
that would have otherwise occurred on such date but for the application of the
foregoing recalculations shall be deemed not to have occurred.

 

As used in this Article VII, the term “Permitted
Cure Securities” shall mean an equity security of Holdings having no
mandatory redemption, repurchase, repayment or similar requirements prior to
the six-month anniversary of the Term Loan Maturity Date and upon which all
dividends or distributions, at the election of Holdings, may be payable in
additional shares of such equity security.

 

ARTICLE VIII

 

The Agents

 

               
SECTION 8.1.  Appointment. 
Each Lender hereby irrevocably designates and appoints the Administrative Agent
as the agent of such Lender under this Agreement and the other Loan Documents,
and each such Lender irrevocably authorizes the Administrative Agent, in such
capacity, to take such action on its behalf under the provisions of this
Agreement and the other Loan Documents and to exercise such powers and perform
such duties as are expressly delegated to the Administrative Agent by the terms
of this Agreement and the other Loan Documents, together with such other powers
as are reasonably incidental thereto.

 

 

77

 

Notwithstanding any provision to the contrary
elsewhere in this Agreement, the Administrative Agent shall not have any duties
or responsibilities, except those expressly set forth herein, or any fiduciary
relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the
Administrative Agent.

 

               
SECTION 8.2.  Delegation of Duties. 
The Administrative Agent may execute any of its duties under this Agreement and
the other Loan Documents by or through agents or attorneys-in-fact and shall be
entitled to advice of counsel concerning all matters pertaining to such
duties.  The Administrative Agent shall not be responsible for the
negligence or misconduct of any agents or attorneys in-fact selected by it with
reasonable care.

 

               
SECTION 8.3.  Exculpatory Provisions. 
Neither any Agent nor any of their respective officers, directors, employees,
agents, attorneys-in-fact or affiliates shall be (i) liable for any action
lawfully taken or omitted to be taken by it or such Person under or in
connection with this Agreement or any other Loan Document (except to the extent
that any of the foregoing are found by a final and nonappealable decision of a
court of competent jurisdiction to have resulted from its or such Person’s own
gross negligence or willful misconduct) or (ii) responsible in any manner to
any of the Lenders for any recitals, statements, representations or warranties
made by any Loan Party or any officer thereof contained in this Agreement or
any other Loan Document or in any certificate, report, statement or other
document referred to or provided for in, or received by the Agents under or in
connection with, this Agreement or any other Loan Document or for the value,
validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement or any other Loan Document or for any failure of any Loan Party a
party thereto to perform its obligations hereunder or thereunder.  The
Agents shall not be under any obligation to any Lender to ascertain or to
inquire as to the observance or performance of any of the agreements contained
in, or conditions of, this Agreement or any other Loan Document, or to inspect
the properties, books or records of any Loan Party.

 

               
SECTION 8.4.  Reliance by
Administrative Agent.  The Administrative Agent shall be
entitled to rely, and shall be fully protected in relying, upon any instrument,
writing, resolution, notice, consent, certificate, affidavit, letter, telecopy,
telex or teletype message, statement, order or other document or conversation
believed by it to be genuine and correct and to have been signed, sent or made
by the proper Person or Persons and upon advice and statements of legal counsel
(including counsel to Holdings or the Borrower), independent accountants and
other experts selected by the Administrative Agent.  The Administrative
Agent may deem and treat the payee of any Note as the owner thereof for all
purposes unless a written notice of assignment, negotiation or transfer thereof
shall have been filed with the Administrative Agent.  The Administrative
Agent shall be fully justified in failing or refusing to take any action under
this Agreement or any other Loan Document unless it shall first receive such
advice or concurrence of the Required Lenders (or, if so specified by this
Agreement, all Lenders) as it deems appropriate or it shall first be indemnified
to its satisfaction by the Lenders against any and all liability and expense
that may be incurred by it by reason of taking or continuing to take any such
action.  The Administrative Agent shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement and the other Loan
Documents in accordance with a request of the Required Lenders (or, if so
specified by this Agreement, all Lenders), and such request and any action
taken or failure to act pursuant thereto shall be binding upon all the Lenders
and all future holders of the Loans.

 

               
SECTION 8.5.  Notice of Default. 
The Administrative Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default unless the Administrative Agent
has received notice from a Lender, Holdings or the Borrower referring to this
Agreement, describing such Default or Event of Default and stating that such
notice is a “notice of default”.  In the event that the Administrative
Agent receives such a notice, the Administrative Agent shall give notice
thereof to the Lenders.  The

 

 

78

 

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

 

               
SECTION 8.6.  Non-Reliance on Agents
and Other Lenders.  Each Lender expressly acknowledges that
neither the Agents nor any of their respective officers, directors, employees,
agents, attorneys-in-fact or affiliates have made any representations or
warranties to it and that no act by any Agent hereafter taken, including any review
of the affairs of a Loan Party or any affiliate of a Loan Party, shall be
deemed to constitute any representation or warranty by any Agent to any
Lender.  Each Lender represents to the Agents that it has, independently
and without reliance upon any Agent or any other Lender, and based on such
documents and information as it has deemed appropriate, made its own appraisal
of and investigation into the business, operations, property, financial and
other condition and creditworthiness of the Loan Parties and their affiliates
and made its own decision to make its Loans hereunder and enter into this
Agreement.  Each Lender also represents that it will, independently and
without reliance upon any Agent or any other Lender, and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit analysis, appraisals and decisions in taking or not taking
action under this Agreement and the other Loan Documents, and to make such
investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other condition and creditworthiness of the
Loan Parties and their affiliates.  Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the Administrative
Agent hereunder, the Administrative Agent shall not have any duty or
responsibility to provide any Lender with any credit or other information
concerning the business, operations, property, condition (financial or
otherwise), prospects or creditworthiness of any Loan Party or any affiliate of
a Loan Party that may come into the possession of the Administrative Agent or
any of its officers, directors, employees, agents, attorneys-in-fact or
affiliates.

 

               
SECTION 8.7.  Indemnification. 
The Lenders agree to indemnify each Agent in its capacity as such (to the
extent not reimbursed by Holdings or the Borrower and without limiting the
obligation of Holdings or the Borrower to do so), ratably according to their
respective Aggregate Exposure Percentages in effect on the date on which
indemnification is sought under this Section (or, if indemnification is
sought after the date upon which the Commitments shall have terminated and the
Loans shall have been paid in full, ratably in accordance with such Aggregate
Exposure Percentages immediately prior to such date), from and against any and
all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind whatsoever that may at any
time (whether before or after the payment of the Loans) be imposed on, incurred
by or asserted against such Agent in any way relating to or arising out of, the
Commitments, this Agreement, any of the other Loan Documents or any documents
contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by such Agent
under or in connection with any of the foregoing; provided that no
Lender shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements that are found by a final and nonappealable decision
of a court of competent jurisdiction to have resulted from such Agent’s gross
negligence or willful misconduct.  The agreements in this
Section shall survive the payment of the Loans and all other amounts
payable hereunder.

 

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

 

 

79

 

               
SECTION 8.9.  Successor
Administrative Agent.  The Administrative Agent may resign
as Administrative Agent upon 10 days’ notice to the Lenders and the
Borrower.  If the Administrative Agent shall resign as Administrative
Agent under this Agreement and the other Loan Documents, then the Required
Lenders shall appoint from among the Lenders a successor agent for the Lenders,
which successor agent shall (unless an Event of Default under Section 7(b),
(c), (g) or (h) with respect to the Borrower shall have occurred and be
continuing) be subject to approval by the Borrower (which approval shall not be
unreasonably withheld or delayed), whereupon such successor agent shall succeed
to the rights, powers and duties of the Administrative Agent, and the term
“Administrative Agent” shall mean such successor agent effective upon such
appointment and approval, and the former Administrative Agent’s rights, powers
and duties as Administrative Agent shall be terminated, without any other or
further act or deed on the part of such former Administrative Agent or any of
the parties to this Agreement or any holders of the Loans.  If no
successor agent has accepted appointment as Administrative Agent by the date that
is 10 days following a retiring Administrative Agent’s notice of resignation,
the retiring Administrative Agent’s resignation shall nevertheless thereupon
become effective, and the Lenders shall assume and perform all of the duties of
the Administrative Agent hereunder until such time, if any, as the Required
Lenders appoint a successor agent as provided for above.  After any
retiring Administrative Agent’s resignation as Administrative Agent, the
provisions of this Section 8 shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Administrative Agent under this
Agreement and the other Loan Documents.

 

               
SECTION 8.10.  Co-Documentation
Agents and Syndication Agent.  Neither the Co-Documentation
Agents nor the Syndication Agent shall have any duties or responsibilities
hereunder in its capacity as such.

 

ARTICLE IX

 

Miscellaneous

 

               
SECTION 9.1.  Notices. 
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 telecopy, as follows:

 

(a)                                 
if to the Borrower or Holdings,
to it at 13800 South Lakes Drive, Charlotte, NC  28273, Attention: Lynn
Amos, Fax No. (704) 587-8722, with a copy to Warburg Pincus, 466 Lexington
Avenue, New York, NY 10017, Attention: Jamie Dimitri, Fax No. (212) 922-0933;

 

(b)                                
if to the Administrative Agent
or the Swingline Lender, to JPMorgan Chase Bank, Loan and Agency Services
Group, 1111 Fannin, 10th Floor, Houston, TX, 77002 Attention: James
DeLeon, Fax No. (713) 750-2666, with a copy to JPMorgan Chase Bank, 270 Park
Avenue, New York, NY, 10017, Attention: Peter Dedousis, Fax No. (212) 270-5100;

 

(c)                                 
if to the Funding Office with
respect to Alternative Currcncy Loans, to J.P. Morgan Europe Ltd., 125 London
Wall, London, England EC2A 5YJ, Attention: Loans Agency (Nichola Hall/Caroline
Walsh), Fax No. 44-207-777-2542/2360; and

 

(d)                                
if to a Lender, to it at its
address (or fax number) set forth on Schedule 2.1 or in the Assignment and
Assumption pursuant to which such Lender shall have become a party hereto.

 

All notices and other communications given to any
party hereto in accordance with the provisions of this Agreement shall be
deemed to have been given on the date of receipt if delivered by hand or
overnight courier service or sent by fax or on the date five Business Days
after dispatch by certified or registered mail if mailed, in each case
delivered, sent or mailed (properly addressed) to such party as provided in

 

 

80

 

this Section 9.1 or in accordance with the latest
unrevoked direction from such party given in accordance with this
Section 9.1.  As agreed to among the Borrower, the Administrative
Agent, the Swingline Lender and the applicable Lenders from time to time,
notices and other communications may also be delivered by e-mail to the e-mail
address of a representative of the applicable person provided from time to time
by such person.

 

              
SECTION 9.2.  Survival of Agreement. 
All covenants, agreements, representations and warranties made by the Borrower
or Holdings herein and in the certificates or other instruments prepared or
delivered in connection with or pursuant to this Agreement or any other Loan
Document shall be considered to have been relied upon by the Lenders and the
Issuing Bank and shall survive the making by the Lenders of the Loans and the
issuance of Letters of Credit by the Issuing Bank, regardless of any
investigation made by the Lenders or the Issuing Bank or on their behalf, and
shall continue in full force and effect as long as the principal of or any
accrued interest on any Loan or any Fee or any other amount payable under this
Agreement or any other Loan Document is outstanding and unpaid or any Letter of
Credit is outstanding and so long as the Commitments have not been terminated. 
The provisions of Sections 2.14, 2.15, 2.19 and 9.5 shall remain operative and
in full force and effect regardless of the expiration of the term of this
Agreement, the consummation of the transactions contemplated hereby, the
repayment of any of the Loans, the expiration of the Commitments, the
expiration of any Letter of Credit, the invalidity or unenforceability of any
term or provision of this Agreement or any other Loan Document, or any
investigation made by or on behalf of the Administrative Agent, any Lender or
the Issuing Bank.

 

               
SECTION 9.3.  Binding Effect. 
This Agreement shall become effective when it shall have been executed by the
Borrower, Holdings and the Administrative Agent and when the Administrative
Agent shall have received counterparts hereof which, when taken together, bear
the signatures of each of the other parties hereto.

 

               
SECTION 9.4.  Successors and Assigns. 
(a) The provisions of this Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns permitted
hereby (including any affiliate of the Issuing Bank that issues any Letter of
Credit), except that (i) the Borrower may not assign or otherwise transfer any
of its rights or obligations hereunder without the prior written consent of
each Lender (and any attempted assignment or transfer by the Borrower without
such consent shall be null and void) and (ii) no Lender may assign or otherwise
transfer its rights or obligations hereunder except in accordance with this
Section.

 

(b)                                
(i) 
Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may
assign to one or more assignees (each, an “Assignee”) all or a portion
of its rights and obligations under this Agreement (including all or a portion
of its Commitments and the Loans at the time owing to it) with the prior
written consent (such consent not to be unreasonably withheld) of:

 

(A)  the Borrower, provided that no
consent of the Borrower shall be required for an assignment to a Lender, an
affiliate of a Lender, an Approved Fund (as defined below) or, if an Event of
Default has occurred and is continuing, any other Person;

 

(B)  the Administrative Agent, provided
that no consent of the Administrative Agent shall be required for an assignment
of all or any portion of a Term Loan to a Lender, an Affiliate of a Lender or
an Approved Fund; and

 

(C)  the Issuing Bank, provided that no
consent of the Issuing Bank shall be required for an assignment of all or any
portion of a Term Loan.

 

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

 

 

81

 

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

 

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

 

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

 

For the purposes of this
Section 9.4, “Approved Fund” means any Person (other than a natural
person) that is engaged in making, purchasing, holding or investing in bank
loans and similar extensions of credit in the ordinary course of its business
and 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.

 

(iii)  Subject to
acceptance and recording thereof pursuant to paragraph (b)(iv) below, from and
after the effective date specified in each Assignment and Assumption the
Assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and obligations of
a Lender under this Agreement, and the assigning Lender thereunder shall, to
the extent of the interest assigned by such Assignment and Assumption, be
released from its obligations under this Agreement (and, in the case of an
Assignment and Assumption covering all of the assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a party hereto
but shall continue to be entitled to the benefits of Sections 2.14, 2.15, 2.19
and 9.5).  Any assignment or transfer by a Lender of rights or obligations
under this Agreement that does not comply with this Section 9.4 shall be
treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with paragraph (c)
of this Section.

 

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

 

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

 

 

82

 

(c)                                 
(i) 
Any Lender may, without the consent of the Borrower or the Administrative
Agent, sell participations to one or more banks or other entities (a “Participant”)
in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Commitments and the Loans owing to
it); provided that (A) such Lender’s obligations under this Agreement
shall remain unchanged, (B) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations and (C) the
Borrower, the Administrative Agent, the Issuing Bank and the other Lenders
shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under this Agreement.  Any agreement
pursuant to which a Lender sells such a participation shall provide that such
Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided
that such agreement may provide that such Lender will not, without the consent
of the Participant, agree to any amendment, modification or waiver that (1)
requires the consent of each Lender directly affected thereby pursuant to
Section 9.8(b) and (2) directly affects such Participant.  Subject to
paragraph (c)(ii) of this Section, the Borrower agrees that each Participant
shall be entitled to the benefits of Sections 2.14, 2.15 and 2.19 to the same
extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (b) of this Section.  To the extent permitted by
law, each Participant also shall be entitled to the benefits of
Section 2.17 as though it were a Lender, provided such Participant
shall be subject to Section 9.6 as though it were a Lender.

 

(ii)  A Participant
shall not be entitled to receive any greater payment under Section 2.14 or
2.19 than the applicable Lender would have been entitled to receive with
respect to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrower’s prior written
consent.  Any Participant that is a Non-U.S. Lender shall not be entitled
to the benefits of Section 2.19 unless such Participant complies with
Section 2.19(e).

 

(d)                                
Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal
Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest; provided that no such pledge or
assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or Assignee for such
Lender as a party hereto.

 

(e)                                 
Notwithstanding
the foregoing, any Conduit Lender may assign any or all of the Loans it may
have funded hereunder to its designating Lender without the consent of the
Borrower or the Administrative Agent and without regard to the limitations set
forth in Section 9.4(b).  Each of Holdings, the Borrower, each Lender
and the Administrative Agent hereby confirms that it will not institute against
a Conduit Lender or join any other Person in instituting against a Conduit
Lender any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceeding under any state bankruptcy or similar law, for one year and one day
after the payment in full of the latest maturing commercial paper note issued
by such Conduit Lender; provided, however, that each Lender designating
any Conduit Lender hereby agrees to indemnify, save and hold harmless each
other party hereto for any loss, cost, damage or expense arising out of its
inability to institute such a proceeding against such Conduit Lender during
such period of forbearance.

 

               
SECTION 9.5.  Expenses; Indemnity. 
(a)  The Borrower and Holdings agree, jointly and severally, to pay all
out-of-pocket expenses incurred by the Administrative Agent, the Issuing Bank
and the Swingline Lender in connection with the syndication of the credit
facilities provided for herein and the preparation and administration of this
Agreement and the other Loan Documents or in connection with any amendments,
modifications or waivers of the provisions hereof or thereof (whether or not
the transactions hereby or thereby contemplated shall be consummated) or
incurred by the Administrative Agent or any Lender in connection with the
enforcement or protection of its rights in connection with this Agreement and
the

 

 

83

 

other Loan Documents or in connection with the Loans
made or Letters of Credit issued hereunder, including the reasonable fees,
charges and disbursements of Simpson Thacher & Bartlett LLP, counsel for
the Administrative Agent, and, in connection with any such enforcement or
protection, the fees, charges and disbursements of any other counsel for the
Administrative Agent or any Lender.

 

(b)                                
The
Borrower and Holdings agree, jointly and severally, to indemnify the
Administrative Agent, each Lender, the Issuing Bank and each Related Party of
any of the foregoing persons (each such person being called an “Indemnitee”)
against, and to hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses, including reasonable counsel fees,
charges and disbursements, incurred by or asserted against any Indemnitee
arising out of, in any way connected with, or as a result of (i) the execution
or delivery of this Agreement or any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the performance by the parties
hereto or thereto of their respective obligations hereunder or thereunder or
the consummation of the Transactions and the other transactions contemplated
hereby or thereby, (ii) the use of the proceeds of the Loans or issuance of
Letters of Credit, (iii) any claim, litigation, investigation or proceeding
relating to any of the foregoing, whether or not any Indemnitee is a party
thereto, or (iv) any actual or alleged presence or Release of Hazardous
Materials on any property currently or formerly owned or operated by the
Borrower or any of the Subsidiaries, or any Environmental Liability related in
any way to the Borrower or the Subsidiaries; provided, that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses are determined by a
court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Indemnitee.

 

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

 

(d)                                
To
the extent permitted by applicable law, neither Holdings nor the Borrower shall
assert, and each hereby waives, any claim against any Indemnitee, on any theory
of liability, for special, indirect, consequential or punitive damages (as
opposed to direct or actual damages) arising out of, in connection with, or as
a result of, this Agreement or any agreement or instrument contemplated hereby,
the Transactions, any Loan or Letter of Credit or the use of the proceeds
thereof.

 

(e)                                 
The
provisions of this Section 9.5 shall remain operative and in full force
and effect regardless of the expiration of the term of this Agreement, the
consummation of the transactions contemplated hereby, the repayment of any of
the Loans, the expiration of the Commitments, the expiration of any Letter of
Credit, the invalidity or unenforceability of any term or provision of this
Agreement or any other Loan Document, or any investigation made by or on behalf
of the Administrative Agent, any Lender or the Issuing Bank.  All amounts
due under this Section 9.5 shall be payable on written demand therefor.

 

               
SECTION 9.6.  Right of Setoff. 
If an Event of Default shall have occurred and be continuing, each Lender is
hereby authorized at any time and from time to time, except to the extent
prohibited by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and

 

 

84

 

other indebtedness at any time owing by such Lender to
or for the credit or the account of the Borrower or Holdings against any of and
all the obligations of the Borrower or Holdings now or hereafter existing under
this Agreement and other Loan Documents held by such Lender, irrespective of
whether or not such Lender shall have made any demand under this Agreement or
such other Loan Document and although such obligations may be unmatured. 
The rights of each Lender under this Section 9.6 are in addition to other
rights and remedies (including other rights of setoff) which such Lender may
have.

 

               
SECTION 9.7.  Applicable Law. 
THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (OTHER THAN LETTERS OF CREDIT AND
AS EXPRESSLY SET FORTH IN OTHER LOAN DOCUMENTS) SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.  EACH
LETTER OF CREDIT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED IN ACCORDANCE
WITH, THE LAWS OR RULES DESIGNATED IN SUCH LETTER OF CREDIT, OR IF NO SUCH LAWS
OR RULES ARE DESIGNATED, THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY
CREDITS MOST RECENTLY PUBLISHED AND IN EFFECT, ON THE DATE SUCH LETTER OF
CREDIT WAS ISSUED, BY THE INTERNATIONAL CHAMBER OF COMMERCE (THE “UNIFORM
CUSTOMS”) AND, AS TO MATTERS NOT GOVERNED BY THE UNIFORM CUSTOMS, THE LAWS
OF THE STATE OF NEW YORK.

 

               
SECTION 9.8.  Waivers; Amendment. 
(a)  No failure or delay of the Administrative Agent, any Lender or the
Issuing Bank in exercising any power or right hereunder or under any other Loan
Document shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power.  The rights and
remedies of the Administrative Agent, the Issuing Bank and the Lenders
hereunder and under the other Loan Documents are cumulative and are not exclusive
of any rights or remedies that they would otherwise have.  No waiver of
any provision of this Agreement or any other Loan Document or consent to any
departure by the Borrower or any other Loan Party therefrom shall in any event
be effective unless the same shall be permitted by paragraph (b) below, and
then such waiver or consent shall be effective only in the specific instance
and for the purpose for which given.  No notice or demand on the Borrower
or Holdings in any case shall entitle the Borrower or Holdings to any other or
further notice or demand in similar or other circumstances.

 

(b)                                
Neither
this Agreement nor any of the Security Documents nor any provision hereof or
thereof may be waived, amended or modified except pursuant to an agreement or
agreements in writing entered into by the Borrower, Holdings and the Required
Lenders; provided, however,
that (x) the Borrower, Holdings and the Administrative Agent may enter into an
amendment to effect the provisions of Section 2.23(b) upon the
effectiveness of any Incremental Term Loan Assumption Agreement (and any such
amendment shall in any event be deemed to have occurred upon such
effectiveness) and (y) no such agreement under this Section 9.8(b) shall
(i) decrease the principal amount of, or extend the maturity of or any
scheduled principal payment date or date for the payment of any interest on any
Loan or any date for reimbursement of an L/C Disbursement, or waive or excuse
any such payment or any part thereof, or decrease the rate of interest on any
Loan or L/C Disbursement, without the prior written consent of each Lender
affected thereby, (ii) increase or extend the Commitment or decrease or extend
the date for payment of any Fees of or any other amount actually due and payable
hereunder to any Lender without the prior written consent of such Lender, (iii)
amend or modify the pro rata requirements of Section 2.16, the provisions
of Section 9.4(j), the provisions of this Section, or release any
Guarantor or all or substantially all of the Collateral, without the prior
written consent of each Lender, (iv) change the provisions of any Loan Document
in a manner that by its terms adversely affects the rights in respect of
payments due to Lenders holding Loans of one Class differently from the rights
of Lenders holding Loans of any other Class without the prior written consent
of Lenders holding a majority in interest of the

 

 

85

 

outstanding Loans and unused
Commitments of each adversely affected Class, (v) amend, modify or waive
compliance by Holdings or the Borrower with the provisions of Section 6.11
or 6.12 (or with the provisions of Section 4.1, as it relates to an Event
of Default following a breach of any provision of this Agreement) without the
prior written consent of Revolving Lenders holding a majority in interest of
the Revolving Credit Commitments, (vii) reduce the percentage contained in the
definition of the term “Required Lenders” without the prior written consent of
each Lender (it being understood that with the consent of the Required Lenders,
additional extensions of credit pursuant to this Agreement may be included in
the determination of the Required Lenders on substantially the same basis as
the Term Loan Commitments and Revolving Credit Commitments on the date hereof)
or (viii) without the prior written consent of each Lender directly affected
thereby, amend the definition of the term “Interest Period” in any way which
would permit Interest Periods to be in excess of six months without regard to
availability to Lenders; provided, further, that no such
agreement shall amend, modify or otherwise affect the rights or duties of the
Administrative Agent, the Issuing Bank or the Swingline Lender hereunder or
under any other Loan Document without the prior written consent of the
Administrative Agent, the Issuing Bank or the Swingline Lender. 
Notwithstanding anything to the contrary herein, no Defaulting Lender shall
have any right to approve or disapprove any amendment, waiver or consent
hereunder, except that the Commitment of such Lender may not be increased or
extended without the consent of such Lender (it being understood that any
Commitments or Loans held or deemed held by any Defaulting Lender shall be
excluded for a vote of the Lenders hereunder requiring any consent of the
Lenders).

 

               
SECTION 9.9.  Interest Rate
Limitation.  Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan or
participation in any L/C Disbursement, together with all fees, charges and
other amounts which are treated as interest on such Loan or participation in
such L/C Disbursement under applicable law (collectively the “Charges”),
shall exceed the maximum lawful rate (the “Maximum Rate”) which may be
contracted for, charged, taken, received or reserved by the Lender holding such
Loan or participation in accordance with applicable law, the rate of interest
payable in respect of such Loan or participation hereunder, together with all
Charges payable in respect thereof, shall be limited to the Maximum Rate and,
to the extent lawful, the interest and Charges that would have been payable in
respect of such Loan or participation but were not payable as a result of the
operation of this Section 9.9 shall be cumulated and the interest and
Charges payable to such Lender in respect of other Loans or participations or
periods shall be increased (but not above the Maximum Rate therefor) until such
cumulated amount, together with interest thereon at the Federal Funds Effective
Rate to the date of repayment, shall have been received by such Lender.

 

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

 

               
SECTION 9.11.  WAIVER OF JURY TRIAL. 
EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS
AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS.  EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO

 

 

86

 

ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT
IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.11.

 

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

 

              
SECTION 9.13.  Counterparts. 
This Agreement may be executed in counterparts (and by different parties hereto
on different counterparts), each of which shall constitute an original but all
of which when taken together shall constitute a single contract, and shall
become effective as provided in Section 9.3.  Delivery of an executed
signature page to this Agreement by facsimile transmission shall be as
effective as delivery of a manually signed counterpart of this Agreement.

 

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

 

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

 

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

 

(c)                                 
Each
of Holdings and the Borrower irrevocably consents to service of process in the
manner provided for notices in Section 9.1.  Nothing in this
Agreement will affect the right of any party to this Agreement to serve process
in any other manner permitted by law.

 

               
SECTION 9.16.  Confidentiality. 
Each of the Administrative Agent, the Issuing Bank and the Lenders agrees to
maintain the confidentiality of the Information (as defined below), except that
Information may be

 

 

87

 

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

 

               
SECTION 9.17.  USA Patriot Act. 
Each Lender hereby notifies the Borrower that pursuant to the requirements of
the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law
October 26, 2001)) (the “Patriot 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 Lender to identify the Borrower in accordance with the Act.

 

               
SECTION 9.18.  Releases of
Guarantees and Liens.  (a) Notwithstanding anything to the
contrary contained herein or in any other Loan Document, the Administrative
Agent is hereby irrevocably authorized by each Lender (without requirement of
notice to or consent of any Lender except as expressly required by
Section 9.8) to take any action requested by the Borrower having the
effect of releasing any Collateral or guarantee obligations (i) to the extent
necessary to permit consummation of any transaction not prohibited by any Loan
Document or that has been consented to in accordance with Section 9.8 or
(ii) under the circumstances described in paragraph (b) below.

 

(b)  At such time as
the Loans, the Reimbursement Obligations and the other obligations under the
Loan Documents (other than obligations under or in respect of Hedging
Agreements) shall have been paid in full, the Commitments have been terminated
and no Letters of Credit shall be outstanding, the Collateral shall be released
from the Liens created by the Security Documents, and the Security Documents
and all obligations (other than those expressly stated to survive such
termination) of the Administrative Agent and each Loan Party under the Security
Documents shall terminate, all without delivery of any instrument or
performance of any act by any Person.

 

               
SECTION 9.19.  Judgment Currency. 
(a) The Borrower’s obligations hereunder and under the other Loan Documents to
make payments in a specified currency (the “Obligation Currency”) shall
not be discharged or satisfied by any tender or recovery pursuant to any
judgment expressed in or converted into any currency other than the Obligation
Currency, except to the extent that such tender or recovery results in the
effective receipt by the Administrative Agent or a Lender of the full amount of
the Obligation Currency expressed to be payable to the Administrative Agent or
such Lender under this Agreement or

 

 

88

 

the other Loan Documents.  If, for the purpose of
obtaining or enforcing judgment against any Loan Party in any court or in any
jurisdiction, it becomes necessary to convert into or from any currency other
than the Obligation Currency (such other currency being hereinafter referred to
as the “Judgment Currency”) an amount due in the Obligation Currency,
the conversion shall be made, at the rate of exchange (as quoted by the
Administrative Agent or if the Administrative Agent does not quote a rate of exchange
on such currency, by a known dealer in such currency designated by the
Administrative Agent) determined, in each case, as of the Business Day
immediately preceding the date on which the judgment is given (such Business
Day being hereinafter referred to as the “Judgment Currency Conversion Date”).

 

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

 

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

 

 

89

 

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

 

	
   

  	
  PP HOLDING CORPORATION,

  
	
   

  	
   

  
	
   

  	
  by 

  	
  /s/ Lynn Amos

  	
   

  
	
   

  	
   

  	
  Name: Lynn Amos

  
	
   

  	
   

  	
  Title: Chief Financial
  Officer, Treasurer and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PP ACQUISITION
  CORPORATION,

  
	
   

  	
   

  
	
   

  	
  by 

  	
  /s/ Lynn Amos

  	
   

  
	
   

  	
   

  	
  Name: Lynn Amos

  
	
   

  	
   

  	
  Title: Chief Financial
  Officer, Treasurer and Secretary

  

 

 

	
  The undersigned hereby
  acknowledges and agrees

  that, upon the effectiveness of the Merger, it will

  succeed by operation of law to all of the rights and

  obligations of the Borrower set forth herein and that

  all references herein to the “Borrower” shall thereupon

  be deemed to be references to the undersigned.

  
	
   

  
	
   

  
	
  POLYPORE, INC.

  	
   

  
	
   

  	
   

  
	
  by 

  	
  /s/ Lynn Amos

  	
   

  
	
  Name: Lynn Amos

  
	
  Title:

  
	
   

  	
   

  	
   

  

 

 

	
   

  	
  JPMORGAN CHASE BANK,
  individually and as

  Administrative Agent,

  
	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Thomas H. Kozlark

  	
   

  
	
   

  	
   

  	
  Name: Thomas H. Kozlark

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAR STEARNS CORPORATE
  LENDING INC.,

  individually and as Syndication Agent, 

  
	
   

  	
   

  
	
   

  	
  by 

  	
  /s/ Victor Bulzacchelli

  	
   

  
	
   

  	
   

  	
  Name: Victor
  Bulzacchelli

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC
  CAPITAL CORPORATION,

  individually and as Co-Documentation Agent,

  
	
   

  	
   

  
	
   

  	
  by 

  	
  /s/ Vish Sathappan

  	
   

  
	
   

  	
   

  	
  Name: Vish Sathappan

  
	
   

  	
   

  	
  Title: Vice President

  

 

 

2

 

	
   

  	
  LEHMAN COMMERCIAL PAPER
  INC.

  
	
   

  	
   

  
	
   

  	
  by

  	
  /s/ G. Andrew Keith

  	
   

  
	
   

  	
   

  	
  Name: G. Andrew Keith

  
	
   

  	
   

  	
  Title: Authorized
  Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UBS LOAN FINANCE LLC

  
	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Wilfred V. Saint

  	
   

  
	
   

  	
   

  	
  Name: Wilfred V. Saint

  
	
   

  	
   

  	
  Title: Director,
  Banking Products Services U.S.

  
	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Barbara
  Ezell-McMichael

  	
   

  
	
   

  	
   

  	
  Name: Barbara
  Ezell-McMichael

  
	
   

  	
   

  	
  Title:  Associate
  Director, Banking Products Services U.S.

  

 

 

	
   

  	
  ING CAPITAL LLC  

  
	
   

  	
   

  
	
   

  	
  by 

  	
  /s/ Simon Clark 

  
	
   

  	
   

  	
  Name: Simon Clark

  
	
   

  	
   

  	
  Title: Managing
  Director  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NATIONAL CITY
  BANK  

  
	
   

  	
   

  
	
   

  	
  by 

  	
  /s/ Gavin D. Young 

  
	
   

  	
   

  	
  Name: Gavin D. Young

  
	
   

  	
   

  	
  Title: Account
  Officer  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  OPPENHEIMER SENIOR
  FLOATING RATE FUND  

  
	
   

  	
   

  
	
   

  	
  by 

  	
  /S/ David Foxhoven 

  
	
   

  	
   

  	
  Name: David Foxhoven

  
	
   

  	
   

  	
  Title: A.V.P.  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KZH CYPRESS TREE-1
  LLC  

  
	
   

  	
   

  
	
   

  	
  by 

  	
  /s/ Dorian Herrera 

  
	
   

  	
   

  	
  Name: Dorian Herrera

  
	
   

  	
   

  	
  Title: Authorized
  Agent  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KZH SOLEIL-2 LLC  

  
	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Dorian Herrera

  
	
   

  	
   

  	
  Name: Dorian Herrera

  
	
   

  	
   

  	
  Title: Authorized
  Agent  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KZH STERLING LLC  

  
	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Dorian Herrera 

  
	
   

  	
   

  	
  Name: Dorian Herrera

  
	
   

  	
   

  	
  Title: Authorized
  Agent  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF
  TOKYO-MITSUBISHI TRUST COMPANY  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Chris Droussiotis

  
	
   

  	
   

  	
  Name: Chris Droussiotis

  
	
   

  	
   

  	
  Title: Vice President

  

 

 

 

2

 

 

 

	
   

  	
  KZH CRESCENT-2
  LLC  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Dorian Herrera 

  
	
   

  	
   

  	
  Name: Dorian Herrera

  
	
   

  	
   

  	
  Title: Authorized
  Agent  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KZH CRESCENT-3
  LLC  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Dorian Herrera

  
	
   

  	
   

  	
  Name: Dorian Herrera

  
	
   

  	
   

  	
  Title: Authorized
  Agent  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KZH SOLEIL LLC  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Dorian Herrera 

  
	
   

  	
   

  	
  Name: Dorian Herrera

  
	
   

  	
   

  	
  Title: Authorized Agent

  

 

 

3Exhibit
10.3

 

 

Execution
Copy

 

FIRST AMENDMENT

 

FIRST AMENDMENT, dated as
of July 30, 2004 (this “Amendment”), to the Credit Agreement, dated as
of May 13, 2004 (as amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”), among PP HOLDING CORPORATION, a Delaware
corporation (“Holdings”), POLYPORE, INC. (f/k/a PP Acquisition
Corporation), a Delaware corporation (the “Borrower”), the several banks
and other financial institutions or entities from time to time parties thereto
(the “Lenders”), GENERAL ELECTRIC CAPITAL CORPORATION, LEHMAN COMMERCIAL
PAPER INC. and UBS SECURITIES LLC, as co-documentation agents, BEAR STEARNS
CORPORATE LENDING INC., as syndication agent, and JPMORGAN CHASE BANK, as
administrative agent (in such capacity, the “Administrative Agent”).

W I T N E S S E T
H:

 

WHEREAS, pursuant to the
Credit Agreement, the Lenders have agreed to make, and have made, certain loans
and other extensions of credit to the Borrowers;

WHEREAS, the Borrower has
requested, and, upon this Amendment becoming effective, the Lenders have
agreed, that certain provisions of the Credit Agreement be amended as set forth
below;

NOW, THEREFORE, the
parties hereto hereby agree as follows:

SECTION 1. Defined Terms.  Terms defined in the
Credit Agreement and used herein shall have the meanings given to them in the
Credit Agreement.

PART
I

SECTION 2. Amendment to Section 1.1 [Defined Terms]. 
(a)  Section 1.1 of the Credit Agreement is hereby amended by inserting
the following defined terms in their appropriate alphabetical order:

“IPO” shall mean the initial public offering of
the shares of common stock of the Parent.

“Moody’s” shall mean Moody’s Investors Service,
Inc.

“S&P” shall mean Standard & Poor’s
Ratings Service.

“SunTrust Lease” shall mean the Equipment Lease
Agreement dated July 29th, 2003 between SunTrust Leasing Corp., its successors
and assigns, and Celgard, Inc.

(b)  The “Capital
Expenditures” definition is hereby amended by deleting the last sentence
therein and substituting in lieu thereof the following sentence:

“Except for purposes of
computing Excess Cash Flow, any buyout payments of (x) the Exide Lease not in
excess of $10,000,000 in the aggregate and (y) the SunTrust Lease not in excess
of $12,000,000 in the aggregate shall be deemed not to constitute a Capital
Expenditure.”

 

 

(c)  The
“Consolidated EBITDA” definition is hereby amended by deleting clause (iv)
thereof in its entirety and substituting in lieu thereof the following:

“(iv) any non-recurring fees, cash charges and other
cash expenses made or incurred in connection with (A) the Transactions (to the
extent paid or otherwise accounted for within 180 days of the consummation of
the Transactions), (B) the IPO, (C) current and future permitted financing
transactions, (D) permitted retirements, purchases and redemptions of the
Senior Subordinated Notes (including, without limitation, premiums paid and
costs incurred in connection therewith) or (E) the First Amendment to this
Agreement”

The “Consolidated EBITDA”
definition is hereby further amended by (i) deleting the term “and” at the end
of clause (xi) therein and replacing such term with a “,” and (ii) inserting
the following language at the end of clause (xii) therein immediately prior to
the word “minus”:

“, (xiii) all operating lease payments not in excess
of $3,000,000 associated with the SunTrust Lease during such period and (xiv)
one-time charges in connection with cleanup costs in the Borrower’s or its
Subsidiaries’ Potenza, Italy facility incurred on or before December 30, 2006
and one-time restructuring costs in connection with the Membrana facility
incurred on or before December 30, 2006 (including, without limitation, in
connection with severance and similar costs, facility closure costs and
equipment relocation costs), in each case incurred during such period and in an
aggregate amount with respect to this clause (xiv) not to exceed $20,000,000
during any period of four consecutive fiscal quarters ending on or before
December 30, 2006”

(d)  The “Excess
Cash Flow” definition is hereby amended by deleting clause (A) of the last
sentence thereof and substituting in lieu thereof the following:

“(A) items (iv), (v), (vi), (xiv) and, so long as no
Indebtedness is incurred by Holdings, the Borrower or any Subsidiary in
connection with the buyout of the Exide Lease and the SunTrust Lease,
respectively, items (xii) and (xiii) of clause (a) of the definition of
Consolidated EBITDA to the extent such items are paid in cash during such
fiscal year,”

(e)  The “Parent”
definition is hereby amended by deleting such definition in its entirety and
substituting in lieu thereof the following:

“Parent” shall mean Polypore International,
Inc. or any other direct or indirect parent of Holdings.

(f)  The “Pro Forma
Basis” definition is hereby amended by (i) deleting the phrase “Exide Lease
buyout” set forth in the first sentence thereof and substituting in lieu
thereof the phrase “buyouts of the Exide Lease and the SunTrust Lease” and (ii)
deleting the phrase “buyout of the Exide Lease” set forth in the proviso
therein and substituting in lieu thereof the phrase “buyouts of the Exide Lease
and the SunTrust Lease”.

SECTION 3. Amendment to Section 1.3 [Pro Forma
Calculations].  Section 1.3 of the Credit Agreement is hereby amended
by inserting the language “or the SunTrust Lease” immediately following the
phrase “Exide Lease” contained therein.

SECTION
4. Amendment to Section 6.1 [Indebtedness].  Section 6.1 of the
Credit Agreement is hereby amended by revising subsection (g) thereof to delete
the words “$400,000,000 at

 

2

 

any
time outstanding” set forth in clause (i) therein and substituting in lieu
thereof the words “$405,915,000 net of any redemptions, repurchases or other
repayments made in respect thereof”.

SECTION 5. Amendment to Section 6.9 [Other Indebtedness;
Material Agreements].  Section 6.9(b) of the Credit Agreement is
hereby amended by replacing the parenthetical proviso contained in clause (i)
thereof with the following:

“(provided, however,
that the foregoing shall not prohibit any refinancings of Indebtedness in
accordance with Section 6.1(l) or the conversion of any such Indebtedness into
equity securities; and provided, further, that, notwithstanding
the foregoing, Holdings, the Borrower and each of their Material Subsidiaries
shall be permitted to make any of the payments referred to in clause (i) above
(or offer to make such payments) (A) with the net cash proceeds of the IPO (to
the extent Parent directly or indirectly contributes such proceeds to the
Borrower) or (B) with the net cash proceeds of subsequent equity offerings by
the Parent (to the extent Parent directly or indirectly contributes such
proceeds to the Borrower) so long as, in the case of this clause (B), at such
time, (x) no Default or Event of Default shall have occurred and be continuing
either before or after giving effect to such payment and (y) the Leverage Ratio
is less than or equal to 3.25 to 1.0 after giving effect to such payment)”

PART
II

SECTION 6. Amendment to Section 6.1 [Indebtedness]. 
Section 6.1 of the Credit Agreement is hereby amended by revising subsection
(s) thereof to delete the dollar amount “$50,000,000” contained therein and
substituting in lieu thereof the dollar amount “$75,000,000”.

SECTION 7. Amendments to Section 6.4 [Investments, Loans
and Advances].  (a)  Section 6.4 of the Credit Agreement is
hereby amended by revising subsection (a) thereof to delete the dollar amount
“$25,000,000” contained therein and substituting in lieu thereof the dollar
amount “$50,000,000”.

(b)  Section 6.4 of
the Credit Agreement is hereby further amended by revising subsection (c)
thereof by deleting clause (iii) thereof in its entirety and substituting in
lieu thereof the following:

“(iii) the aggregate amount of loans and advances (net
of repayments) made to Holdings shall not exceed (x) $5,000,000 during any
fiscal year of the Borrower or (y) $25,000,000 during the term of this
Agreement; provided, that the amount of any loans and advances that can be
made during any fiscal year pursuant to clause (iii) above shall be increased
by the amount of unused permitted loans and advances for any preceding fiscal
year so long as the aggregate amount of such loans and advances does not exceed
$25,000,000 at any time during the term of this Agreement”

(c)  Section 6.4 of
the Credit Agreement is hereby further amended by (x) deleting the word “and”
at the end of clause (k) contained therein, (y) renaming clause (m) as clause
(n) and (z) inserting the new clause (m) set forth below in appropriate
alphabetical order:

“(m)       
the Borrower and Holdings may make loans and advances to Holdings and/or Parent
(x) the proceeds of which shall be applied by Holdings and/or Parent to pay out
of pocket general corporate and overhead expenses incurred by Holdings and/or
Parent not to exceed (together with the total amount of Restricted Payments
made for such purpose under Section 6.6(a)(iv)) $5,000,000 during any fiscal
year of the Borrower and (y) in the form of Tax

 

3

 

 Payments, to the extent directly attributable to (or arising as a
result of) the operations of the Borrower and the Subsidiaries; provided,
however, that (A) the amount of such loans and advances (together
with dividends made pursuant to Section 6.6(a)(iv)) shall not exceed the amount
that the Borrower and the Subsidiaries would be required to pay in respect of
Federal, State and local taxes were the Borrower and the Subsidiaries to pay
such taxes as stand-alone taxpayers, (B) all loans and advances made to
Holdings and/or Parent pursuant to this clause (m) are used by Holdings and/or
Parent for the purposes specified herein within 20 days of the receipt thereof
and (C) in the case of any loan or advance made to Holdings pursuant to this
clause (m), Holdings owns, beneficially and of record, 100% of the issued and
outstanding Equity Interests of the Borrower at the time of such Investment;
and”

SECTION 8. Amendments to Section 6.6 [Restricted
Payments; Restrictive Agreements].  (a)  Section 6.6 of the
Credit Agreement is hereby amended by revising clause (a)(iv) thereof to insert
the words “(together with the aggregate amount of loans and advances made
pursuant to Section 6.4(m))” both immediately prior to the amount “$5,000,000”
set forth in clause (x) therein and immediately following the word “dividends”
set forth in clause (A) of the proviso therein.

(b)  Section 6.6 of
the Credit Agreement is hereby further amended by revising clause (a)(v)
thereof to insert (i) after the words “100% of Cumulative Excess Cash Flow that
is Not Otherwise Applied”, the words “minus the aggregate amount of
Restricted Payments made pursuant to Section 6.6(a)(viii)” and (ii) at the end
thereof the following proviso:

“provided, that no Restricted Payments shall be
made under this clause (v) for the purpose of enabling Parent to make dividend
payments on its common stock until on or after July 30, 2006; and, provided,
further, that, notwithstanding anything herein to the contrary, on or after
July 30, 2006, Restricted Payments may be made under this clause (v) for the
purpose of enabling Parent to make dividend payments on its common stock
regardless of whether the above Leverage Ratio test has been met;”

(c)  Section 6.6 of
the Credit Agreement is hereby further amended by (i) deleting the term “and”
set forth at the end of clause (a)(vi) thereof, (ii) deleting the “.” at the
end of clause (vii) thereof and substituting in lieu thereof the following
language “; and” and (iii) inserting the following clause (viii) immediately
after clause (a)(vii):

“(viii) Holdings, the Borrower and its Subsidiaries
may make additional Restricted Payments for the sole purpose of enabling Parent
to pay dividends on its common stock not to exceed (x) $10,000,000 during the
period from July 30, 2004 through July 29, 2005 and (y) $10,000,000 during the
period from July 30, 2005, through July 29, 2006.”

PART
III

SECTION
9. Amendment to Section 1.1 [Defined Terms].  (a)  The
“Applicable Percentage” definition is hereby amended by deleting the two left
columns of the table set forth therein in their entirety (the columns located
under the headings “Eurodollar Spread-Term Loans” and “ABR Spread-Term Loans”)
and substituting in lieu thereof the following two columns:

 

4

 

	
  Eurodollar Spread—

  Term Loans

  	
   

  	
  ABR Spread—

  Term Loans

  
	
  2.25%

  	
   

  	
  1.25%

  

(b)  The “Applicable Percentage” definition is
hereby further amended by inserting the following language at the end thereof

The
Applicable Percentage for Eurodollar Spread-Term Loans shall be reduced to
2.00%, and the Applicable Percentage for ABR Spread-Term Loans shall be reduced
to 1.00% upon (and for so long as) (x) the Leverage Ratio being less than 4.0
to 1.0 or (y) the senior secured credit rating of the Borrower being rated at
least “Ba3” by Moody’s and “BB-” by S&P, each with a stable outlook or
better.  Each change in the Applicable Percentage resulting from a change
in the Leverage Ratio or a change in the senior secured credit rating of the
Borrower shall be effective with respect to all Term Loans outstanding on and
after (the “Term Loan Adjustment Date”) (i) with respect to changes in
the Leverage Ratio, the date of delivery to the Administrative Agent of the
financial statements and certificates required by Section 5.4(a) or (b)
and Section 5.4(c), respectively, indicating such change and (ii) with
respect to changes in the senior secured credit rating of the Borrower, the
first Business Day following the date on which Moody’s or S&P,
respectively, announces such change in ratings, and until the next Term Loan
Adjustment Date.

SECTION 10. Conditions to Effectiveness of Amendment. 
(a) The amendments set forth in Part I of this Amendment (other than the
amendments solely relating to transaction costs associated with the IPO
referred to in clause (a)(iv)(B) of the “Consolidated EBITDA” definition and
the corresponding reference in the “Excess Cash Flow” definition) shall be
effective on the date on which all of the following conditions precedent have
been satisfied or waived (the “First Effective Date”):

(i)           
The Administrative Agent (or its counsel) shall have received a counterpart of
this Amendment, executed and delivered by a duly authorized officer of each of
(A) Holdings, (B) the Borrower and (C) the Required Lenders;

(ii)          
The Borrower shall have paid all fees and expenses of the Administrative Agent,
including the reasonable fees and expenses of counsel to the Administrative
Agent;

(iii)         
After giving effect to the Amendment, no Default or Event of Default shall have
occurred and be continuing; and

(iv)          The
Administrative Agent shall have received such fees as separately agreed between
the Administrative Agent (or any of its Affiliates) and the Borrower.

(b)  The amendments
set forth in Part II of this Amendment (together with the amendments set forth
in Part I solely relating to transaction costs associated with the IPO referred
to in clause (a)(iv)(B) of the “Consolidated EBITDA” definition and the
corresponding reference in the “Excess Cash Flow” definition) shall be
effective on the date on which all of the following conditions precedent have
been satisfied or waived (the “Second Effective Date”):

(i)           
The conditions set forth in Section 10(a) above shall have been satisfied; and

(ii)          
(A)  The IPO shall have been consummated on or before September 30, 2004,
and (B) the Borrower shall have purchased, retired or redeemed (or made
arrangements

 

5

 

satisfactory to the Administrative Agent to do so; it being understood
that open market purchases, a cash tender offer pursuant to documents provided
to the Administrative Agent on or before the Second Effective Date and arrangements
for redemptions pursuant to the Senior Subordinated Note Indenture are all
satisfactory to the Administrative Agent) the Loans or the Senior Subordinated
Notes in an aggregate principal amount not less than $75,000,000.

(c)  The amendment
set forth in Part III of this Amendment shall be effective on the date on which
all of the following conditions precedent have been satisfied or waived (the “Third
Effective Date”):

(i)           
The conditions set forth in Section 10(a) above shall have been satisfied; and

(ii)          
The Administrative Agent (or its counsel) shall have received (after giving
effect to any assignments entered into pursuant to Section 2.20) a counterpart
of this Amendment, executed and delivered by a duly authorized officer of each
of the Lenders with Term Loan Commitments.

(d)  The
Administrative Agent shall notify the Borrower and each Lender (via IntraLinks
or such other means reasonably determined by the Administrative Agent) of the
occurrence of the First Effective Date, the Second Effective Date and the Third
Effective Date.

SECTION 11. Representations and Warranties. 
Each of the representations and warranties made by each of Holdings and the
Borrower in or pursuant to the Loan Documents shall be true and correct in all
material respects on and as of the date hereof as if made as of the date
hereof, except for representations and warranties expressly stated to relate to
a specific earlier date, in which case such representations and warranties were
true and correct in all material respects as of such earlier date; provided,
that each reference to the Credit Agreement therein shall be deemed to be a
reference to the Credit Agreement after giving effect to this Amendment.

SECTION 12. Effect on the Loan Documents.  (a)
Except as specifically amended above, the Credit Agreement and all other Loan
Documents shall continue to be in full force and effect and are hereby in all
respects ratified and confirmed.

(b)          
The execution, delivery and effectiveness of this Amendment shall not operate
as a waiver of any right, power or remedy of any Lender or the Administrative
Agent under any of the Loan Documents, nor constitute a waiver of any provision
of any of the Loan Documents.

SECTION 13. Expenses.  Holdings and the
Borrower agree to pay or reimburse the Administrative Agent for all of its
out-of-pocket costs and reasonable expenses incurred in connection with this
Amendment, any other documents prepared in connection herewith and the
transaction contemplated hereby, including, without limitation, the reasonable
fees and disbursements of counsel to the Administrative Agent.

SECTION 14. Affirmation of Guaranty and Credit Agreement. 
The Guarantors hereby consent to this Amendment and hereby confirm, reaffirm
and restate that their obligations under or in respect of the Credit Agreement
and the documents related thereto to which they are a party are and shall
remain in full force and effect after giving effect to the foregoing Amendment.

SECTION
15. GOVERNING LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HERETO SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

6

 

SECTION 16. Execution in Counterparts.  This
Amendment may be executed by one or more of the parties to this Amendment on
any number of separate counterparts, and all of said counterparts taken
together shall be deemed to constitute one and the same instrument.

 

[Remainder
of page intentionally left blank.]

 

7

 

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

	
   

  	
  PP HOLDING CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lynn Amos

  
	
   

  	
  Name: Lynn Amos

  	
   

  
	
   

  	
  Title: Chief Financial Officer, Treasurer and
  Secretary

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

	
   

  	
  POLYPORE, INC., as a Borrower

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lynn Amos

  
	
   

  	
  Name: Lynn Amos

  
	
   

  	
  Title: Chief Financial Officer, Treasurer and
  Secretary

  

 

 

	
   

  	
  JP MORGAN CHASE BANK, as Administrative Agent

  and a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas H. Kozlark

  
	
   

  	
  Name: Thomas H. Kozlark

  
	
   

  	
  Title:Vice President

  

 

 

	
   

  	
  BEAR STEARNS CORPORATE LENDING INC., as Syndication
  Agent and a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Victor Bulzacchelli

  
	
   

  	
  Name: Victor Bulzacchelli

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  GENERAL ELECTRIC CAPITAL CORPORATION, as
  Co-Documentation Agent and a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Vish Sathappan

  
	
   

  	
  Name: Vish Sathappan

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  LEHMAN COMMERCIAL PAPER INC., as Co-Documentation
  Agent and a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Francis Chang

  
	
   

  	
  Name: Francis Chang

  
	
   

  	
  Title: Authorized Signatory

  

 

8

 

	
   

  	
  ING CAPITAL LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Scott Orner

  
	
   

  	
  Name: Gavin D. Young

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  NATIONAL CITY BANK

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gavin D. Young

  
	
   

  	
  Name:  Gavin D. Young

  
	
   

  	
  Title:  Assistant Vice President

  

 

 

	
   

  	
  LEHMAN COMMERCIAL PAPER, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Francis Chang

  
	
   

  	
  Name: Francis Chang

  
	
   

  	
  Title: Authorized Signatory

  

 

 

	
   

  	
  BANK OF TOKYO3⁄4MITSUBISHI TRUST COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric J. Planey

  
	
   

  	
  Name: Eric J. Planey

  
	
   

  	
  Title: Assistant Vice President

  

 

9

 

	
   

  	
  ARCHIMEDES FUNDING III, LTD.

  
	
   

  	
  BY: ING Capital Advisors LLC, as Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gordon R. Cook

  
	
   

  	
  Name:  Gordon R. Cook

  
	
   

  	
  Title:  Managing Director

  

 

 

	
   

  	
  ARCHIMEDES FUNDING IV (CAYMAN), LTD.

  
	
   

  	
  BY: ING Capital Advisors LLC, as Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gordon R. Cook

  
	
   

  	
  Name: Gordon R. Cook

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  NEMEAN CLO, LTD.

  
	
   

  	
  BY: ING Capital Advisors LLC, as Investment Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gordon R. Cook

  
	
   

  	
  Name: Gordon R. Cook

  
	
   

  	
  Title: Managing Director

  

 

10

 

	
   

  	
  ENDURANCE CLO I, LTD

  
	
   

  	
  c/o: ING Capital Advisors LLC, as Portfolio Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gordon R. Cook

  
	
   

  	
  Name: Gordon R. Cook

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  ING-ORYX CLO, LTD

  
	
   

  	
  BY: ING Capital Advisors LLC, as Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gordon R. Cook

  
	
   

  	
  Name: Gordon R. Cook

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  WESTERN ASSET FLOATING RATE HIGH INCOME FUND

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ WESTERN ASSET FLOATING RATE HIGH INCOME FUND

  

 

 

	
   

  	
  ING CAPITAL MANAGEMENT LTD, acting as Investment
  Advisor for ____

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DJ Wilson

  
	
   

  	
  Name: DJ Wilson

  
	
   

  	
  Title:  Managing Director

  

 

11

 

	
   

  	
  CLARENVILLE CEDO, SA

  
	
   

  	
  By: Pacific Investment Management Company LLC, as
  its Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mohan V. Phansalkar

  
	
   

  	
  Name: Mohan V. Phansalkar

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  INTERCONTINENTAL CDO S.A.

  
	
   

  	
  By: Pacific Investment Management Company LLC, as
  its Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mohan V. Phansalkar

  
	
   

  	
  Name: Mohan V. Phansalkar

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  INVESCO EUROPEAN CO I S.A.

  
	
   

  	
  By: INVESCO Senior Secured Management, Inc. as
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Joseph Rotondo

  
	
   

  	
  Name: Joseph Rotondo

  
	
   

  	
  Title: Authorized Signatory

  

 

12

 

	
   

  	
  PETRUSSE EUROPEAN CLO S.A.

  
	
   

  	
  By:  INVESCO Senior Secured Management, Inc. as
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Joseph Rotondo

  
	
   

  	
  Name: Joseph Rotondo

  
	
   

  	
  Title: Authorized Signatory

  

 

 

	
   

  	
  RMF EURO CDO S.A.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Nick Martin

  
	
   

  	
  Name: Nick Martin

  
	
   

  	
  Title: Director

  

 

 

	
   

  	
  RMF EURO CDO II S.A.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Nick Martin

  
	
   

  	
  Name: Nick Martin

  
	
   

  	
  Title: Director

  

 

 

	
   

  	
  JUPITER LOAN FUNDING LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Meredith J. Koslick

  
	
   

  	
  Name: Meredith J. Koslick

  
	
   

  	
  Title: Assistant Vice President

  

 

13

 

	
   

  	
  WINGED FOOT FUNDING TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Diana M. Himes

  
	
   

  	
  Name: Diana M. Himes

  
	
   

  	
  Title: Authorized Agent

  

 

 

	
   

  	
  LANDMARK IV CDO LIMITED

  
	
   

  	
  By: Aladdin Capital Management LLC, As Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Joseph Moroney

  
	
   

  	
  Name: Joseph Moroney

  
	
   

  	
  Title: Director

  

 

 

	
   

  	
  PACIFIC CDO III, LTD

  
	
   

  	
  By: Lacontra Inc. as its Investment Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ PACIFIC CDO III, LTD

  

 

 

	
   

  	
  AIMCO CDO SERIES 2000-A

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ AIMCO COO SERIES 2000-A

  

 

14

 

	
   

  	
  ALLSTATE LIFE INSURANCE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ ALLSTATE LIFE INSURANCE COMPANY

  

 

 

	
   

  	
  AMERICAN EXPRESS CERTIFICATE COMPANY

  
	
   

  	
  By: American Express Asset Management Group as
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Yvonne E. Stevens

  
	
   

  	
  Name: Yvonne E. Stevens

  
	
   

  	
  Title: Senior Managing Director

  

 

 

	
   

  	
  CENTURION CDO II, LTD.

  
	
   

  	
  By: American Express Asset Management Group, Inc. as
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Leanne Stavrakis

  
	
   

  	
  Name: Leanne Stavrakis

  
	
   

  	
  Title: Director - Operations

  

 

 

	
   

  	
  CENTURION CDO VI, LTD.

  
	
   

  	
  By: American Asset Management Group, Inc. as
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Leanne Stavrakis

  
	
   

  	
  Name: Leanne Stavrakis

  
	
   

  	
  Title: Director - Operations

  

 

15

 

	
   

  	
  CENTURION CDO VII, LTD.

  
	
   

  	
  By: American Express Asset Management Group, Inc. as
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Leanne Stavrakis

  
	
   

  	
  Name: Leanne Stavrakis

  
	
   

  	
  Title: Director - Operations

  

 

 

	
   

  	
  IDS LIFE INSURANCE COMPANY

  
	
   

  	
  By: American Express Asset Management Group, Inc. as
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Yvonne E. Stevens

  
	
   

  	
  Name: Yvonne E. Stevens

  
	
   

  	
  Title: Senior Managing Director

  

 

 

	
   

  	
  KZH CYPRESSTREE-1 LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Dorian Herrera

  
	
   

  	
  Name: Dorian Herrera

  
	
   

  	
  Title: Authorized Agent

  

 

 

	
   

  	
  KZH STERLING LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Dorian Herrera

  
	
   

  	
  Name: Dorian Herrera

  
	
   

  	
  Title: Authorized Agent

  

 

16

 

	
   

  	
  SEQUILS-CENTURION V, LTD.

  
	
   

  	
  By: American Express Asset Management Group, Inc. as
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Leanne Stavrakis

  
	
   

  	
  Name: Leanne Stavrakis

  
	
   

  	
  Title: Director - Operations

  

 

 

	
   

  	
  NAVIGATOR CDO 2003, LTD.

  
	
   

  	
  By: Antares Asset Management Inc., as Collateral
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ David Mahon

  
	
   

  	
  Name: David Mahon

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  BILL & MELINDA GATES FOUNDATION

  
	
   

  	
  By: Babson Capital Management LLC as Investment
  Adviser

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Glenn P. Duffy, CFA

  
	
   

  	
  Name: Glenn P. Duffy, CFA

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  MAPLEWOOD (CAYMAN) LIMITED

  
	
   

  	
  By: Babson Capital Management LLC under delegated
  authority from Massachusetts Mutual Life Insurance Company as Investment
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Glenn P. Duffy, CFA

  
	
   

  	
  Name: Glenn P, Duffy, CFA

  
	
   

  	
  Title: Managing Director

  

 

17

 

	
   

  	
  MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY

  
	
   

  	
  By: Babson Capital Management LLC as Investment
  Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Glenn P. Duffy, CFA

  
	
   

  	
  Name: Glenn P. Duffy, CFA

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  SUFFIELD CLO, LIMITED

  
	
   

  	
  By: Babson Capital Management LLC as Collateral
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Glenn P. Duffy, CFA

  
	
   

  	
  Name: Glenn P. Duffy, CFA

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  SANKATY ADVISORS, LLC as Collateral Manager for
  AVERY POINT CLO, LTD., as Term Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Diane J. Exter

  
	
   

  	
  Name: Diane J. Exter

  
	
   

  	
  Title: Managing Director

            Portfolio Manager

  

 

 

	
   

  	
  SANKATY ADVISORS, LLC as Collateral Manager for
  Castle Hill I - INGOTS, Ltd., as Term Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Diane J. Exter

  
	
   

  	
  Name: Diane J. Exter

  
	
   

  	
  Title: Managing Director

            Portfolio Manager

  

 

18

 

	
   

  	
  SANKATY ADVISORS, LLC as Collateral Manager for
  Castle Hill II - INGOTS, Ltd., as Term Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Diane J. Exter

  
	
   

  	
  Name: Diane J. Exter

  
	
   

  	
  Title: Managing Director

            Portfolio Manager

  

 

 

	
   

  	
  SANKATY ADVISORS, LLC as Collateral Manager for
  Castle Hill III CLO, Limited, as Term Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Diane J. Exter

  
	
   

  	
  Name: Diane J. Exter

  
	
   

  	
  Title: Managing Director

            Portfolio Manager

  

 

 

	
   

  	
  HARBOUR TOWN FUNDING LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Meredith J. Koslick

  
	
   

  	
  Name: Meredith J. Koslick

  
	
   

  	
  Title: Assistant Vice President

  

 

 

	
   

  	
  SANKATY ADVISORS, LLC as Collateral Manager for Race
  Point CLO, Limited, as Term Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Diane J. Exter

  
	
   

  	
  Name: Diane J. Exter

  
	
   

  	
  Title: Managing Director

            Portfolio Manager

  

 

19

 

	
   

  	
  SANKATY ADVISORS, LLC as Collateral Manager for Race
  Point II CLO, Limited, as Term Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Diane J. Exter

  
	
   

  	
  Name: Diane J. Exter

  
	
   

  	
  Title: Managing Director

            Portfolio Manager

  

 

 

	
   

  	
  SANKATY ADVISORS, LLC as Collateral Manager for
  Prospect Funding I, LLC as Term Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Diane J. Exter

  
	
   

  	
  Name: Diane J. Exter

  
	
   

  	
  Title: Managing Director

            Portfolio Manager

  

 

 

	
   

  	
  PPM MONARCH BAY FUNDING LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Meredith J. Koslick

  
	
   

  	
  Name: Meredith J. Koslick

  
	
   

  	
  Title: Assistant Vice President

  

 

 

	
   

  	
  BLACKROCK SENIOR INCOME SERIES MAGNETITE IV CLO,
  LIMITED MAGNETITE V CLO, LIMITED SENIOR LOAN PORTFOLIO

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Tom Colwell

  
	
   

  	
  Name: Tom Colwell

  
	
   

  	
  Title: Authorized Signatory

  

 

20

 

	
   

  	
  BEAR STEARNS LOAN TRUST

  
	
   

  	
  By: Bear Stearns Asset Management, Inc., as its
  attorney-in-fact

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Bear Stearns Asset Management, Inc.

  

 

 

	
   

  	
  BRAYMOOR & CO.

  
	
   

  	
  By: Bear Stearns Asset Management, Inc., as its
  attorney-in-fact

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Bear Stearns Asset Management, Inc.

  

 

 

	
   

  	
  GALLATIN FUNDING I LTD.

  
	
   

  	
  By: Bear Stearns Asset Management, Inc., as
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Bear Stearns Asset Management, Inc.

  

 

 

	
   

  	
  GRAYSTON CLO 2001-01 LTD.

  
	
   

  	
  By: Bear Stearns Asset Management, Inc., as
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Bear Stearns Asset Management, Inc.

  

 

21

 

	
   

  	
  GRAYSTON CLO II 2004-01 LTD.

  
	
   

  	
  By: Bear Stearns Asset Management, Inc., as
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Bear Stearns Asset Management, Inc.

  
	
   

  	
  Name:

  
	
   

  	
  Title: Associate Director

  

 

 

	
   

  	
  CALLIDUS DEBT PARTNERS CLO FUND II, LTD.

  
	
   

  	
  By: Its Collateral Manager, Callidus Capital
  Management, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Mavis Taintor

  
	
   

  	
  Name: Mavis Taintor

  
	
   

  	
  Title: Managing Director

  

 

22

 

	
   

  	
  CITADEL CREDIT TRADING LTD.

  
	
   

  	
  By: Citadel Limited Partnership, its Portfolio
  Manager

  
	
   

  	
  By: GLB Partners, L.P., its General Partner

  
	
   

  	
  By: Citadel Investment Group, L.L.C., its General
  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ James E. Bolin

  
	
   

  	
  Name: James E. Bolin

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  CITADEL EQUITY FUND, LTD.

  
	
   

  	
  By: Citadel Limited Partnership, its Portfolio
  Manager

  
	
   

  	
  By: GLB Partners, L.P., its General Partner

  
	
   

  	
  By: Citadel Investment Group, L.L.C., its General
  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ James E. Bolin

  
	
   

  	
  Name: James E. Bolin

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  ECL FUNDING LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Shawn Hendrickson

  
	
   

  	
  Name: Shawn Hendrickson

  
	
   

  	
  Title: Attorney-in-fact

  

 

23

 

	
   

  	
  COLUMBUS LOAN FUNDING LTD.

  
	
   

  	
  By: Travelers Asset Management International

  Company LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John O’Connell

  
	
   

  	
  Name: John O’Connell

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  CITIGROUP FINANCIAL PRODUCTS, INC.

  
	
   

  	
  By: Antares Asset Management Inc., as Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ David Mahon

  
	
   

  	
  Name: David Mahon

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  CSAM FUNDING I

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ David H. Lerner

  
	
   

  	
  Name: David H. Lerner

  
	
   

  	
  Title: Authorized Signatory

  

 

 

	
   

  	
  CSAM FUNDING III

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ David H. Lerner

  
	
   

  	
  Name: David H. Lerner

  
	
   

  	
  Title: Authorized Signatory

  

 

 

	
   

  	
  CSAM FUNDING IV

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ David H. Lerner

  
	
   

  	
  Name: David H. Lerner

  
	
   

  	
  Title: Authorized Signatory

  

 

24

 

	
   

  	
  BRYN MAWR CLO, LTD.

  
	
   

  	
  By: Deerfield Capital Management LLC as its
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Dan Hattori

  
	
   

  	
  Name: Dan Hattori

  
	
   

  	
  Title: Senior Vice President

  

 

 

	
   

  	
  FOREST CREEK CLO, LTD.

  
	
   

  	
  By: Deerfield Capital Management LLC as its
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Dan Hattori

  
	
   

  	
  Name: Dan Hattori

  
	
   

  	
  Title: Senior Vice President

  

 

 

	
   

  	
  LONG GROVE CLO, LIMITED.

  
	
   

  	
  By: Deerfield Capital Management LLC as its
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Dan Hattori

  
	
   

  	
  Name: Dan Hattori

  
	
   

  	
  Title: Senior Vice President

  

 

 

	
   

  	
  MUIRFIELD TRADING LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Meredith J. Koslick

  
	
   

  	
  Name: Meredith J. Koslick

  
	
   

  	
  Title: Assistant Vice President

  

 

25

 

	
   

  	
  ROSEMONT CLO, LTD.

  
	
   

  	
  By: Deerfield Capital Management LLC as its
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Dan Hattori

  
	
   

  	
  Name: Dan Hattori

  
	
   

  	
  Title: Senior Vice President

  

 

 

	
   

  	
  DENALI CAPITAL LLC, managing member of DC Funding
  Partners, portfolio manager for DENALI CAPITAL CLO IV, LTD., or an affiliate

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John P. Thacker

  
	
   

  	
  Name: John P. Thacker

  
	
   

  	
  Title: Chief Credit Officer

  

 

26

 

	
   

  	
  DENALI CAPITAL LLC, managing member of DC Funding
  Partners, portfolio manager for DENALI CAPITAL CLO I, LTD., or an affiliate

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John P. Thacker

  
	
   

  	
  Name: John P. Thacker

  
	
   

  	
  Title: Chief Credit Officer

  

 

 

	
   

  	
  DENALI CAPITAL LLC, managing member of DC Funding
  Partners, portfolio manager for DENALI CAPITAL CLO II, LTD., or an affiliate

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John P. Thacker

  
	
   

  	
  Name: John P. Thacker

  
	
   

  	
  Title: Chief Credit Officer

  

 

 

	
   

  	
  DENALI CAPITAL LLC, managing member of DC Funding
  Partners, portfolio manager for DENALI CAPITAL CLO III, LTD., or an affiliate

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John P. Thacker

  
	
   

  	
  Name: John P. Thacker

  
	
   

  	
  Title: Chief Credit Officer

  

 

 

	
   

  	
  BIG SKY III SENIOR LOAN TRUST

  
	
   

  	
  By: Eaton Vance Management as Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Payson F. Swaffield

  
	
   

  	
  Name: Payson F. Swaffield

  
	
   

  	
  Title: Vice President

  

 

27

 

	
   

  	
  COSTANTINUS EATON VANCE CDO V, LTD.

  
	
   

  	
  By: Eaton Vance Management as Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Payson F. Swaffield

  
	
   

  	
  Name: Payson F. Swaffield

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  EATON VANCE CDO III, LTD.

  
	
   

  	
  By: Eaton Vance Management as Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Payson F. Swaffield

  
	
   

  	
  Name: Payson F. Swaffield

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  EATON VANCE CDO VI LTD.

  
	
   

  	
  By: Eaton Vance Management as Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Payson F. Swaffield

  
	
   

  	
  Name: Payson F. Swaffield

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  EATON VANCE INSTITUTIONAL SENIOR LOAN FUND

  
	
   

  	
  By: Eaton Vance Management as Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Payson F. Swaffield

  
	
   

  	
  Name: Payson F. Swaffield

  
	
   

  	
  Title: Vice President

  

 

28

 

	
   

  	
  EATON VANCE LIMITED DURATION INCOME FUND

  
	
   

  	
  By: Eaton Vance Management as Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Payson F. Swaffield

  
	
   

  	
  Name: Payson F. Swaffield

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  EATON VANCE SENIOR FLOATING-RATE TRUST

  	 

	
   

  	
  By: Eaton Vance Management as Investment Advisor

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  By: 

  	
  /s/ Payson F. Swaffield

  	
   

  
	
   

  	
  Name: Payson F. Swaffield

  	 

	
   

  	
  Title: Vice President

  	 

 

 

	
   

  	
  EATON VANCE SENIOR INCOME TRUST

  
	
   

  	
  By: Eaton Vance Management as Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Payson F. Swaffield

  
	
   

  	
  Name: Payson F. Swaffield

  
	
   

  	
  Title: Vice President

  

 

29

 

	
   

  	
  EATON VANCE VT FLOATING-RATE INCOME FUND

  
	
   

  	
  By: Eaton Vance Management as Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Payson F. Swaffield

  
	
   

  	
  Name: Payson F. Swaffield

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  GRAYSON & CO.

  
	
   

  	
  By: Boston Management and Research as Investment
  Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Payson F. Swaffield

  
	
   

  	
  Name: Payson F. Swaffield

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  OXFORD STRATEGIC INCOME FUND

  
	
   

  	
  By: Eaton Vance Management as Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Payson F. Swaffield

  
	
   

  	
  Name: Payson F. Swaffield

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  SENIOR DEBT PORTFOLIO

  
	
   

  	
  By: Boston Management and Research as Investment
  Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Payson F. Swaffield

  
	
   

  	
  Name: Payson F. Swaffield

  
	
   

  	
  Title: Vice President

  

 

30

 

	
   

  	
  TOLLI & CO.

  
	
   

  	
  By: Eaton Vance Management as Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Payson F. Swaffield

  
	
   

  	
  Name: Payson F. Swaffield

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  BALLYROCK CDO I LIMITED

  
	
   

  	
  By: BALLYROCK Investment Advisors LLC, as Collateral
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Lisa Rymut

  
	
   

  	
  Name: Lisa Rymut

  
	
   

  	
  Title: Assistant Treasurer

  

 

 

	
   

  	
  BALLYROCK CDO II LIMITED

  
	
   

  	
  By: BALLYROCK Investment Advisors LLC, as Collateral
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Lisa Rymut

  
	
   

  	
  Name: Lisa Rymut

  
	
   

  	
  Title: Assistant Treasurer

  

 

 

	
   

  	
  FIDELITY ADVISOR SERIES II: FIDELITY ADVISOR
  FLOATING RATE HIGH INCOME FUND

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John H. Costello

  
	
   

  	
  Name: John H. Costello

  
	
   

  	
  Title: Assistant Treasurer

  

 

31

 

	
   

  	
  FLAGSHIP CLO II

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Mark S. Pelletier

  
	
   

  	
  Name: Mark S. Pelletier

  
	
   

  	
  Title: Director

  

 

 

	
   

  	
  FLAGSHIP CLO III

  
	
   

  	
  By: Flagship Capital Management, Inc. its
  Attorney-in-Fact

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Mark S. Pelletier

  
	
   

  	
  Name: Mark S. Pelletier

  
	
   

  	
  Title: Director

  

 

 

	
   

  	
  FLAGSHIP CLO 2001-1

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Mark S. Pelletier

  
	
   

  	
  Name: Mark S. Pelletier

  
	
   

  	
  Title: Director

  

 

 

	
   

  	
  LONG LANE MASTER TRUST IV

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Diana M. Himes

  
	
   

  	
  Name: Diana M. Himes

  
	
   

  	
  Title: Authorized Agent

  

 

 

	
   

  	
  FOOTHILL INCOME TRUST II, L.P.

  
	
   

  	
  By: FIT II G.P., its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Dennis R. Ascher

  
	
   

  	
  Name: Dennis R. Ascher

  
	
   

  	
  Title: Managing Member

  

 

32

 

	
   

  	
  FOREST MULTI-STRATEGY MASTER FUND SPC, on behalf of
  its Multi-Strategy Segregated Portfolio

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ David Teolis

  
	
   

  	
  Name: David Teolis

  
	
   

  	
  Title: Portfolio Manager

  

 

 

	
   

  	
  FRANKLIN FLOATING RATE TRUST

  
	
   

  	
  FRANKLIN FLOATING RATE DAILY ACCESS FUND

  
	
   

  	
  FRANKLIN FLOATING RATE MASTER SERIES

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ FRANKLIN FLOATING RATE TRUST

  

 

33

 

	
   

  	
  LOAN FUNDING VII LLC (Valhalla)

  
	
   

  	
  By: Highland Capital Management, L.P. as Collateral
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Todd Travers

  
	
   

  	
  Name: Todd Travers

  
	
   

  	
  Title: Senior Portfolio Manager

           Highland Capital Management,
  L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RESTORATION FUNDING CLO, LTD.

  
	
   

  	
  By: Highland Capital Management, L.P. as Collateral
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Todd Travers

  
	
   

  	
  Name: Todd Travers

  
	
   

  	
  Title: Senior Portfolio Manager

           Highland Capital Management,
  L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COLUMBIA FLOATING RATE LIMITED LIABILITY COMPANY

  
	
   

  	
  By: Highland Capital Management, L.P. as Collateral
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Todd Travers

  
	
   

  	
  Name: Todd Travers

  
	
   

  	
  Title: Senior Portfolio Manager

           Highland Capital Management,
  L.P.

  

 

34

 

	
   

  	
  COLUMBIA FLOATING RATE ADVANTAGE FUND

  
	
   

  	
  By: Highland Capital Management, L.P. as Collateral
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Todd Travers

  
	
   

  	
  Name: Todd Travers

  
	
   

  	
  Title: Senior Portfolio Manager

           Highland Capital Management,
  L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AIM FLOATING RATE FUND

  
	
   

  	
  By: INVESCO Senior Secured Management, Inc. as
  Sub-Adviser

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Joseph Rotondo

  
	
   

  	
  Name: Joseph Rotondo

  
	
   

  	
  Title: Authorized Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AVALON CAPITAL LTD. 2

  
	
   

  	
  By: INVESCO Senior Secured Management, Inc. as
  Portfolio Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Joseph Rotondo

  
	
   

  	
  Name: Joseph Rotondo

  
	
   

  	
  Title: Authorized Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CHAMPLAIN CLO, LTD.

  
	
   

  	
  By: INVESCO Senior Secured Management, Inc. as
  Collateral Adviser

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Joseph Rotondo

  
	
   

  	
  Name: Joseph Rotondo

  
	
   

  	
  Title: Authorized Signatory

  

 

35

 

	
   

  	
  CHARTER VIEW PORTFOLIO

  
	
   

  	
  By: INVESCO Senior Secured Management, Inc. as
  Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Joseph Rotondo

  
	
   

  	
  Name: Joseph Rotondo

  
	
   

  	
  Title: Authorized Signatory

  

 

 

	
   

  	
  DIVERSIFIED CREDIT PORTFOLIO LTD.

  
	
   

  	
  By: INVESCO Senior Secured Management, Inc. as
  Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Joseph Rotondo

  
	
   

  	
  Name: Joseph Rotondo

  
	
   

  	
  Title: Authorized Signatory

  

 

 

	
   

  	
  SEQUILS-LIBERTY, LTD.

  
	
   

  	
  By: INVESCO Senior Secured Management, Inc. as
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Joseph Rotondo

  
	
   

  	
  Name: Joseph Rotondo

  
	
   

  	
  Title: Authorized Signatory

  

 

 

	
   

  	
  SAGAMORE CLO LTD.

  
	
   

  	
  By: INVESCO Senior Secured Management, Inc. as
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Joseph Rotondo

  
	
   

  	
  Name: Joseph Rotondo

  
	
   

  	
  Title: Authorized Signatory

  

 

36

 

	
   

  	
  SARATAOGA CLO I, LIMITED.

  
	
   

  	
  By: INVESCO Senior Secured Management, Inc. as Asset
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Joseph Rotondo

  
	
   

  	
  Name: Joseph Rotondo

  
	
   

  	
  Title: Authorized Signatory

  

 

 

	
   

  	
  CONTINENTAL CASUALTY COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Marilou R. McGirr

  
	
   

  	
  Name: Marilou R. McGirr

  
	
   

  	
  Title: Vice President and Assistant Treasurer

  

 

 

	
   

  	
  MADISON AVENUE CDO III LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ James R. Dingler

  
	
   

  	
  Name: James R. Dingler

  
	
   

  	
  Title: Director

  

 

 

	
   

  	
  METLIFE BANK, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ James R. Dingler

  
	
   

  	
  Name: James R. Dingler

  
	
   

  	
  Title: Director

  

 

37

 

	
   

  	
  METROPOLITAN LIFE INSURANCE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ James R. Dingler

  
	
   

  	
  Name: James R. Dingler

  
	
   

  	
  Title: Director

  

 

 

	
   

  	
  MORGAN STANLEY PRIME INCOME TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Elizabeth Bodisch

  
	
   

  	
  Name: Elizabeth Bodisch

  
	
   

  	
  Title: Authorized Signatory

  

 

 

	
   

  	
  MORGAN STANLEY SENIOR FUNDING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ James Morgan

  
	
   

  	
  Name: James Morgan

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  MOUNTAIN CAPITAL III LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ MOUNTAIN CAPITAL III LTD.

  

 

38

 

	
   

  	
  NATEXIS BANQUES POPULAIRES

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Tefta Ghilaga

  
	
   

  	
  Name: Tefta Ghilaga

  
	
   

  	
  Title: Vice President

  

 

	
   

  	
  By: 

  	
  /s/ Kristen E. Brainard

  
	
   

  	
  Name: Kristen E. Brainard

  
	
   

  	
  Title: Assistant Vice President

  

 

 

	
   

  	
  NATIONWIDE LIFE INSURANCE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Thomas S. Leggett

  
	
   

  	
  Name: Thomas S. Leggett

  
	
   

  	
  Title: Associate Vice President

            Public Bonds

  

 

 

	
   

  	
  NATIONWIDE MUTUAL INSURANCE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Thomas S. Leggett

  
	
   

  	
  Name: Thomas S. Leggett

  
	
   

  	
  Title: Associate Vice President

            Public Bonds

  

 

39

 

	
   

  	
  MAINSTAY FLOATING RATE FUND, a series of Eclipse
  Funds Inc.

  
	
   

  	
  By: New York Life Investment Management LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ R. H. Dial

  
	
   

  	
  Name: R. H. Dial

  
	
   

  	
  Title: Director

  

 

 

	
   

  	
  CLYDESDALE CLO 2001-1, LTD.

  
	
   

  	
  Nomura Corporate Research and Asset Management Inc.
  as Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Elizabeth MacLean

  
	
   

  	
  Name: Elizabeth MacLean

  
	
   

  	
  Title: Director

  

 

 

	
   

  	
  CLYDESDALE CLO 2003, LTD.

  
	
   

  	
  Nomura Corporate Research and Asset Management Inc.
  as Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Elizabeth MacLean

  
	
   

  	
  Name: Elizabeth MacLean

  
	
   

  	
  Title: Director

  

 

 

	
   

  	
  CLYDESDALE CLO 2004, LTD.

  
	
   

  	
  Nomura Corporate Research and Asset Management Inc.

  as Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Elizabeth MacLean

  
	
   

  	
  Name: Elizabeth MacLean

  
	
   

  	
  Title: Director

  

 

40

 

	
   

  	
  NUVEEN TAX-ADVANTAGED TOTAL RETURN STRATEGY FUND, as
  a Lender

  
	
   

  	
  By: Symphony Asset Management LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Lenny Marion

  
	
   

  	
  Name: Lenny Marion

  
	
   

  	
  Title: Portfolio Manager

  

 

 

	
   

  	
  OPPENHEIMER SENIOR FLOATING RATE FUND

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Lisa Chaffee

  
	
   

  	
  Name: Lisa Chaffee

  
	
   

  	
  Title: Manager

  

 

 

	
   

  	
  ING PRIME RATE TRUST

  
	
   

  	
  By: ING Investment Management, Co., as its
  investment manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Charles E. LeMieux, CFA

  
	
   

  	
  Name: Charles E. LeMieux, CFA

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  ING SENIOR INCOME FUND

  
	
   

  	
  By: ING Investment Management, Co., as its
  investment manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Charles E. LeMieux, CFA

  
	
   

  	
  Name: Charles E. LeMieux, CFA

  
	
   

  	
  Title: Vice President

  

 

41

 

	
   

  	
  ADDISON CDO, LIMITED

  
	
   

  	
  By: Pacific Investment Management Company LLC, as its
  Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Mohan V. Phansalkar

  
	
   

  	
  Name: Mohan V. Phansalkar

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  JISSEKIKUN FUNDING, LTD.

  
	
   

  	
  By: Pacific Investment Management Company LLC, as
  its Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Mohan V. Phansalkar

  
	
   

  	
  Name: Mohan V. Phansalkar

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  LOAN FUNDING III LLC

  
	
   

  	
  By: Pacific Investment Management Company LLC, as
  its Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Mohan V. Phansalkar

  
	
   

  	
  Name: Mohan V. Phansalkar

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  SEQUILS-MAGNUM, LTD.

  
	
   

  	
  By: Pacific Investment Management Company LLC, as
  its Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Mohan V. Phansalkar

  
	
   

  	
  Name: Mohan V. Phansalkar

  
	
   

  	
  Title: Managing Director

  

 

42

 

	
   

  	
  SOUTHPORT CLO, LIMITED

  
	
   

  	
  By: Pacific Investment Management Company LLC, as
  its Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Mohan V. Phansalkar

  
	
   

  	
  Name: Mohan V. Phansalkar

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  WRIGLEY CDO, LTD..

  
	
   

  	
  By: Pacific Investment Management Company LLC, as
  its Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Mohan V. Phansalkar

  
	
   

  	
  Name: Mohan V. Phansalkar

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  LAGUNA FUNDING LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Meredith J. Koslick

  
	
   

  	
  Name: Meredith J. Koslick

  
	
   

  	
  Title: Assistant Vice President

  

 

 

	
   

  	
  SEMINOLE FUNDING LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Meredith J. Koslick

  
	
   

  	
  Name: Meredith J. Koslick

  
	
   

  	
  Title: Assistant Vice President

  

 

43

 

	
   

  	
  LOAN FUNDING V, LLC

  
	
   

  	
  By: Prudential Investment Management, Inc., as
  Portfolio Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ George W. Edwards

  
	
   

  	
  Name: George W. Edwards

  
	
   

  	
  Title: Principal

  

 

 

	
   

  	
  BOSTON HARBOR CLO 2004-1 LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Beth Mazor

  
	
   

  	
  Name: Beth Mazor

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  VERAVAS CDO I. LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John Randolph Watkins

  
	
   

  	
  Name: John Randolph Watkins

  
	
   

  	
  Title: Executive Director

  

 

 

	
   

  	
  HAMILTON CDO, LTD.

  
	
   

  	
  By: Stanfield Capital Partners LLC, as its
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Christopher E. Jansen

  
	
   

  	
  Name: Christopher E. Jansen

  
	
   

  	
  Title: Managing Partner

  

 

44

 

	
   

  	
  STANFIELD ARBITRAGE CDO, LTD.

  
	
   

  	
  By: Stanfield Capital Partners LLC, as its
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Christopher E. Jansen

  
	
   

  	
  Name: Christopher E. Jansen

  
	
   

  	
  Title: Managing Partner

  

 

 

	
   

  	
  STANFIELD CARRERA CLO, LTD.

  
	
   

  	
  By: Stanfield Capital Partners LLC, as its Asset
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Christopher E. Jansen

  
	
   

  	
  Name: Christopher E. Jansen

  
	
   

  	
  Title: Managing Partner

  

 

 

	
   

  	
  STANFIELD QUATTRO CLO, LTD.

  
	
   

  	
  By: Stanfield Capital Partners LLC, as its
  Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Christopher E. Jansen

  
	
   

  	
  Name: Christopher E. Jansen

  
	
   

  	
  Title: Managing Partner

  

 

 

	
   

  	
  SUNAMERICA SENIOR FLOATING RATE FUND INC..

  
	
   

  	
  By: Stanfield Capital Partners LLC, as subadvisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Christopher E. Jansen

  
	
   

  	
  Name: Christopher E. Jansen

  
	
   

  	
  Title: Managing Partner

  

 

45

 

	
   

  	
  AURUM CLO 2002-1 LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Thomas R. Bouchard

  
	
   

  	
  Name: Thomas R. Bouchard

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  SRF 2000, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Meredith J. Koslick

  
	
   

  	
  Name: Meredith J. Koslick

  
	
   

  	
  Title: Assistant Vice President

  

 

 

	
   

  	
  STRONG SHORT-TERM HIGH YIELD OLD FUND

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Gilbert L. Southwell, III

  
	
   

  	
  Name: Gilbert L. Southwell, III

  
	
   

  	
  Title: Assistant Secretary

  

 

46

 

	
   

  	
  THE SUMITOMO TRUST & BANKING CO., LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Elizabeth A. Quirk

  
	
   

  	
  Name: Elizabeth A. Quirk

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  GALAXY CLO 2003-1, LTD.

  
	
   

  	
  By: AIG Global Investment Corp. as Investment
  Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven S. Oh

  
	
   

  	
  Name: Steven S. Oh

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  GALAXY III CLO, LTD.

  
	
   

  	
  By: AIG Global Investment Corp. as Investment
  Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven S. Oh

  
	
   

  	
  Name: Steven S. Oh

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  KZH SOLEIL LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Dorian Herrera

  
	
   

  	
  Name: Dorian Herrera

  
	
   

  	
  Title: Authorized Agent

  

 

47

 

	
   

  	
  KZH SOLEIL-2 LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Dorian Herrera

  
	
   

  	
  Name: Dorian Herrera

  
	
   

  	
  Title: Authorized Agent

  

 

 

	
   

  	
  SUNAMERICA LIFE INSURANCE COMPANY

  
	
   

  	
  By: AIG Global Investment Corp. as Investment
  Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven S. Oh

  
	
   

  	
  Name: Steven S. Oh

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  NUVEEN FLOATING RATE INCOME FUND, as a Lender

  
	
   

  	
  By: Symphony Asset Management LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Lenny Mason

  
	
   

  	
  Name: Lenny Mason

  
	
   

  	
  Title: Portfolio Manager

  

 

 

	
   

  	
  CITIGROUP INVESTMENTS CORPORATE LOAN FUND INC.

  
	
   

  	
  By: Travelers Asset Management International Company
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John O’Connell

  
	
   

  	
  Name: John O’Connell

  
	
   

  	
  Title: Vice President

  

 

48

 

	
   

  	
  APEX (Trimaran) CDO I, LTD.

  
	
   

  	
  By: Trimaran Advisors L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ David M. Millison

  
	
   

  	
  Name: David M. Millison

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  CELERITY CLO LIMITED

  
	
   

  	
  By: TCW Advisors, Inc., as Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ G. Steven Kalin

  
	
   

  	
  Name: G. Steven Kalin

  
	
   

  	
  Title: Senior Vice President

  

 

	
   

  	
  By: 

  	
  /s/ Jonathan R. Insull

  
	
   

  	
  Name: Jonathan R. Insull

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  KZH CRESCENT-2 LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Dorian Herrera

  
	
   

  	
  Name: Dorian Herrera

  
	
   

  	
  Title: Authorized Agent

  

 

 

	
   

  	
  KZH CRESCENT-3 LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Dorian Herrera

  
	
   

  	
  Name: Dorian Herrera

  
	
   

  	
  Title: Authorized Agent

  

 

49

 

	
   

  	
  LOAN FUNDING I LLC, a wholly owned subsidiary of
  Citibank, N.A.

  
	
   

  	
  By: TCW Advisors, Inc., as portfolio manager of Loan
  Funding I LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ G. Steven Kalin

  
	
   

  	
  Name: G. Steven Kalin

  
	
   

  	
  Title: Senior Vice President

  

 

	
   

  	
  By: 

  	
  /s/ Jonathan R. Insull

  
	
   

  	
  Name: Jonathan R. Insull

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  TCW SELECT LOAN FUND, LIMITED

  
	
   

  	
  By: TCW Advisors, Inc., as its Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ G. Steven Kalin

  
	
   

  	
  Name: G. Steven Kalin

  
	
   

  	
  Title: Senior Vice President

  

 

	
   

  	
  By: 

  	
  /s/ Jonathan R. Insull

  
	
   

  	
  Name: Jonathan R. Insull

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  FIRST 2004-I CLO, LTD.

  
	
   

  	
  By: TCW Advisors, Inc., its Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Jonathan R. Insull

  
	
   

  	
  Name: Jonathan R. Insull

  
	
   

  	
  Title: Managing Director

  

 

	
   

  	
  By: 

  	
  /s/ G. Steven Kalin

  
	
   

  	
  Name: G. Steven Kalin

  
	
   

  	
  Title: Senior Vice President

  

 

50

 

	
   

  	
  VELOCITY CLO, LTD.

  
	
   

  	
  By: TCW Advisors, Inc., its Collateral Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Richard F. Kurth

  
	
   

  	
  Name: Richard F. Kurth

  
	
   

  	
  Title: Senior Vice President

  

 

	
   

  	
  By: 

  	
  /s/ Jonathan R. Insull

  
	
   

  	
  Name: Jonathan R. Insull

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  SPIRET IV LOAN TRUST 2003-B

  
	
   

  	
  By: Wilmington Trust Company not in its individual

  capacity but solely as trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Rachel I. Simpson

  
	
   

  	
  Name: Rachel I. Simpson

  
	
   

  	
  Title: Financial Services Officer

  

 

 

	
   

  	
  VAN KAMPEN

  
	
   

  	
  SENIOR INCOME TRUST

  
	
   

  	
  By: Van Kampen Investment Advisory Corp.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Howard Tiffen

  
	
   

  	
  Name: Howard Tiffen

  
	
   

  	
  Title: Managing Director

  

 

51

 

	
   

  	
  VAN KAMPEN SENIOR LOAN FUND

  
	
   

  	
  By: Van Kampen Investment Advisory Corp.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Howard Tiffen

  
	
   

  	
  Name: Howard Tiffen

  
	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  WESTLB AG, NEW YORK BRANCH

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Salvatore Battinelli

  
	
   

  	
  Name: Salvatore Battinelli

  
	
   

  	
  Title: Managing Director

           Credit Department

  

 

	
   

  	
  By: 

  	
  /s/ Walter T. Duffy III

  
	
   

  	
  Name: Walter T. Duffy III

  
	
   

  	
  Title: Director

  

 

52

 

ACKNOWLEDGEMENT
AND CONSENT

Each of the undersigned Subsidiary Guarantors hereby
acknowledges and consents to the foregoing First Amendment.

 

	
   

  	
  DARAMIC, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lynn Amos

  
	
   

  	
  Name: Lynn Amos

  
	
   

  	
  Title: Chief Financial Officer, Treasurer and

            Secretary

  

 

 

	
   

  	
  DARAMIC INTERNATIONAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lynn Amos

  
	
   

  	
  Name: Lynn Amos

  
	
   

  	
  Title: Chief Financial Officer, Treasurer and

            Secretary

  

 

 

	
   

  	
  CELGARD, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lynn Amos

  
	
   

  	
  Name: Lynn Amos

  
	
   

  	
  Title: Chief Financial Officer, Treasurer and

            Secretary

  

 

 

	
   

  	
  DARAMIC ASIA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lynn Amos

  
	
   

  	
  Name: Lynn Amos

  
	
   

  	
  Title: Chief Financial Officer, Treasurer and

            Secretary

  

 

53

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}]]