Document:

Exhibit
10.6

 

April 29, 2004

 

Joseph A. Mollica, Ph.D.

Pharmacopeia, Inc.

3000 Eastpark Boulevard

Cranbury, NJ  08512

 

Re:                               Terms
of Employment with Pharmacopeia Drug Discovery, Inc. (“PDD”)

 

Dear Joe:

 

This letter sets forth the terms on which you will be employed
with PDD immediately upon the completion by Pharmacopeia, Inc. of the
distribution of all of the issued and outstanding shares of common stock of its
wholly owned subsidiary, PDD, to the holders of Pharmacopeia’s common stock
(the “Spin Transaction”).  It is
anticipated by the parties hereto that the Spin Transaction will be completed
on or about April 30, 2004.  Please read
this letter carefully and return a signed copy within seven days.  By signing this letter agreement, you agree
to the following:

 

1.                                       Upon
the date of the completion of the Spin Transaction (the “Effective Date”), you
will be employed as interim Chief Executive Officer (“CEO”) of PDD.  Your employment in that position is intended
to be temporary and will continue only until 30 days after another individual
retained by PDD has commenced serving as its CEO.  Your compensation for your services in this position shall be at
an annualized rate of Five Hundred Thirty Thousand Dollars ($530,000.00), paid
in equal installments, less normally applicable payroll deductions, in
accordance with PDD’s regular payroll schedule.  As interim CEO, you will not receive health insurance or other
fringe benefits from PDD.  In the event
that your successor as CEO is not retained within four (4) months following the
Effective Date, the Compensation Committee of the Board of Directors of PDD
shall consider, and discuss with you in good faith, appropriate adjustments to
your compensation package, including salary review,  bonus opportunity and participation in PDD’s equity-based
executive incentive compensation programs.

 

2.                                       Upon
the Effective Date, you shall serve as a member of the Board of Directors of
PDD and as the Non-Executive Chairman of the Board of Directors.  Your term as Non-Executive Chairman of the
Board of Directors (“Chairman”) shall terminate upon the date of the first
annual meeting of the shareholders of PDD which is tentatively scheduled for
May, 2005.  At the conclusion of your
initial term, you will be eligible for renomination as Chairman.  During your service as Chairman, you shall
receive an annual retainer of One Hundred Thousand Dollars ($100,000.00)
payable in four (4) equal quarterly installments.  You shall also be granted (i) as of the Effective Date, options
to purchase 12,000 shares of PDD’s common stock, and (ii) during your
service as Chairman, options to purchase an additional 6,000 shares of PDD’s
common stock on each anniversary of the Effective Date.  Your stock option grants will

 

 

otherwise be on the same terms generally applicable to other directors
of PDD.  This retainer (and the stock
options that are granted to you) shall constitute your full compensation as
Chairman.  For any period during which
you serve as a member of the Board of Directors of PDD after your term as
Chairman ends, you shall be entitled to receive the same compensation as is
generally applicable to other directors of PDD.

 

3.                                       You
will be eligible to participate in PDD’s deferred compensation plan with
respect to the compensation provided to you under this letter.

 

4.                                       Your
employment as interim CEO shall be at-will, and either you or PDD may
discontinue the relationship at any time, for any reason or no reason.

 

5.                                       During
your tenure as Chairman, in the event you do not already have them, you shall
be provided with a home telephone, cellular telephone, computer and fax machine
(and reimbursement of reasonable, properly documented related expenses), as
well as secretarial support through PDD’s headquarters in South Brunswick, New
Jersey, sufficient to assist you in performing your duties as Chairman
(collectively, the “Support Services”). 
These Support Services shall continue to be made available to you for a
six-month period following the end of your tenure as Chairman.

 

6.                                       This
agreement (a) sets forth the entire agreement and understanding between PDD and
you, (b) shall supersede all prior agreements, documents or discussions with
respect to the matters herein covered, but shall not affect the terms of the
Disengagement Agreement dated as of March 31, 2004 by and between you and
Pharmacopeia, Inc., (c) may be amended, modified or waived only by an
instrument in writing signed by the parties hereto, (d) is not assignable
or transferable by you, and (e) shall be governed by the substantive laws of
the State of New Jersey.

 

7.                                       Any
and all disputes between you and PDD arising under or relating to this letter
agreement or any other dispute arising between you and PDD, including claims
arising under any employment discrimination laws, shall be adjudicated and
resolved exclusively through binding arbitration before the American
Arbitration Association pursuant to the American Arbitration Association’s
then-in-effect National Rules for the Resolution of Employment Disputes
(hereafter “Rules”).  The initiation and
conduct of any arbitration hereunder shall be in accordance with the Rules and
each side shall bear its own costs and counsel fees in such arbitration.  Any arbitration hereunder shall be conducted
in Princeton, New Jersey, and any arbitration award shall be final and binding
on both you and PDD.  The arbitrator
shall have no authority to depart from, modify, or add to the written terms of
this letter agreement.  The arbitration
provisions of this paragraph shall be interpreted according to, and governed
by, the Federal Arbitration Act, 9 U.S.C. § 1 et seq., and any action
pursuant to such Act to enforce any rights hereunder shall be brought
exclusively in the United States District Court for the District of  New Jersey. 
All parties described in this paragraph consent to the jurisdiction of
(and the laying of venue in) such court.  

 

 

Please acknowledge
your acceptance of the terms and conditions of this letter agreement by signing
both originals in the space provided below and returning one of the originals
to PDD.

 

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James J. Marino

  
	
   

  	
   

  	
  Pharmacopeia Drug 
  Discovery, Inc.

  

 

 

The undersigned,
intending to be legally

bound hereby, has, this 30th day of April,

2004, agreed to and accepted the foregoing

terms and conditions:

 

 

	
  /s/ Joseph A. Mollica, Ph.D.

  	
   

  
	
  Joseph A. Mollica, Ph.D.Exhibit
10.1

 

 

 

THREE YEAR

CREDIT AGREEMENT

 

among

 

IMS HEALTH
INCORPORATED,

as a Borrower,

 

IMS AG,

as a Borrower,

 

IMS JAPAN K.K.,

as a Borrower,

 

THE LENDERS
PARTIES HERETO,

 

WACHOVIA BANK,
NATIONAL ASSOCIATION,

as Administrative
Agent,

 

BARCLAYS BANK PLC
AND ABN AMRO BANK N.V.,

as Co-Syndication
Agents,

 

and

 

SUNTRUST BANK AND
FORTIS CAPITAL CORP,

as
Co-Documentation Agents

 

Dated as of April
5, 2004

 

 

WACHOVIA CAPITAL
MARKETS, LLC,

as Lead Arranger
and Sole Book Runner

 

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I
  DEFINITIONS AND OTHER PROVISIONS

  	
   

  
	
  Section 1.1

  	
  Defined Terms.

  	
   

  
	
  Section 1.2

  	
  Other
  Definitional Provisions.

  	
   

  
	
  Section 1.3

  	
  Accounting Terms.

  	
   

  
	
  Section
  1.4

  	
  Exchange
  Rates; Currency Equivalents.

  	
   

  
	
  Section
  1.5

  	
  Redenomination
  of Certain Foreign Currencies and Computation of Dollar Amounts.

  	
   

  
	
  Section 1.6

  	
  Additional
  Foreign Currencies.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II THE
  LOANS; AMOUNT AND TERMS

  	
   

  
	
  Section 2.1

  	
  Revolving Loans.

  	
   

  
	
  Section 2.2

  	
  Letter of
  Credit Subfacility.

  	
   

  
	
  Section 2.3

  	
  Swingline Loan
  Subfacility.

  	
   

  
	
  Section 2.4

  	
  Fees.

  	
   

  
	
  Section 2.5

  	
  Commitment
  Reductions.

  	
   

  
	
  Section
  2.6

  	
  Prepayments.

  	
   

  
	
  Section
  2.7

  	
  Minimum
  Principal Amount of Tranches.

  	
   

  
	
  Section 2.8

  	
  Default Rate.

  	
   

  
	
  Section 2.9

  	
  Conversion Options.

  	
   

  
	
  Section
  2.10

  	
  Computation
  of Interest and Fees.

  	
   

  
	
  Section 2.11

  	
  Computations, Pro
  Rata Treatment and Payments.

  	
   

  
	
  Section
  2.12

  	
  Non-Receipt
  of Funds by the Administrative Agent.

  	
   

  
	
  Section
  2.13

  	
  Inability
  to Determine Interest Rate.

  	
   

  
	
  Section
  2.14

  	
  Illegality.

  	
   

  
	
  Section
  2.15

  	
  Deposits
  Unavailable; Impractibility.

  	
   

  
	
  Section 2.16

  	
  Increased Cost.

  	
   

  
	
  Section 2.17

  	
  Increased Capital
  Costs.

  	
   

  
	
  Section 2.18

  	
  Funding Losses.

  	
   

  
	
  Section
  2.19

  	
  Taxes.

  	
   

  
	
  Section
  2.20

  	
  Indemnification;
  Nature of Issuing Lender’s Duties.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  III REPRESENTATIONS AND WARRANTIES

  	
   

  
	
  Section
  3.1

  	
  Existence.

  	
   

  
	
  Section
  3.2

  	
  Power
  and Authorization; Enforceable Obligations.

  	
   

  
	
  Section 3.3

  	
  No Legal Bar to
  Loans.

  	
   

  
	
  Section
  3.4

  	
  Financial
  Information; Disclosure, etc.

  	
   

  
	
  Section 3.5

  	
  Licenses, Permits, etc.

  	
   

  
	
  Section 3.6

  	
  Tax Returns and
  Payments.

  	
   

  
	
  Section 3.7

  	
  Title to
  Properties; Liens.

  	
   

  
	
  Section 3.8

  	
  Litigation, etc.

  	
   

  
	
  Section 3.9

  	
  No Default.

  	
   

  
	
  Section
  3.10

  	
  Governmental
  and Other Consents.

  	
   

  
	
  Section 3.11

  	
  Regulation U, etc.

  	
   

  
	
  Section 3.12

  	
  Investment Company Act;
  Other Regulations.

  	
   

  

 

i

 

	
  Section 3.13

  	
  Compliance with
  ERISA.

  	
   

  
	
  Section 3.14

  	
  Environmental
  Matters.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV CONDITIONS
  PRECEDENT

  	
   

  
	
  Section
  4.1

  	
  Conditions
  to Closing Date and Initial Revolving Loans.

  	
   

  
	
  Section
  4.2

  	
  Conditions
  to All Extensions of Credit.

  	
   

  
	
  Section
  4.3

  	
  Condition
  to Initial Extension of Credit to Any Foreign Borrower.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V AFFIRMATIVE
  COVENANTS

  	
   

  
	
  Section 5.1

  	
  Financial
  Information.

  	
   

  
	
  Section 5.2

  	
  Use of Proceeds.

  	
   

  
	
  Section 5.3

  	
  Payment of
  Obligations.

  	
   

  
	
  Section
  5.4

  	
  Conduct
  of Business and Maintenance of Existence.

  	
   

  
	
  Section
  5.5

  	
  Insurance.

  	
   

  
	
  Section 5.6

  	
  Books and Records.

  	
   

  
	
  Section
  5.7

  	
  Notices.

  	
   

  
	
  Section 5.8

  	
  Payment of Taxes.

  	
   

  
	
  Section 5.9

  	
  Further Assurances.

  	
   

  
	
  Section 5.10

  	
  No Dividend
  Restrictions.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI NEGATIVE
  COVENANTS

  	
   

  
	
  Section 6.1

  	
  Limitation on Liens.

  	
   

  
	
  Section 6.2

  	
  Dissolutions and
  Mergers.

  	
   

  
	
  Section 6.3

  	
  Disposition of
  Assets.

  	
   

  
	
  Section 6.4

  	
  Conduct of Business.

  	
   

  
	
  Section
  6.5

  	
  Compliance
  with Federal Reserve Regulations.

  	
   

  
	
  Section 6.6

  	
  Financial Covenants.

  	
   

  
	
  Section 6.7

  	
  Subsidiary
  Indebtedness.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII EVENTS OF
  DEFAULT

  	
   

  
	
  Section 7.1

  	
  Events of Default.

  	
   

  
	
  Section 7.2

  	
  Acceleration;
  Remedies.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII
  THE ADMINISTRATIVE AGENT

  	
   

  
	
  Section
  8.1

  	
  Appointment.

  	
   

  
	
  Section 8.2

  	
  Delegation of Duties.

  	
   

  
	
  Section 8.3

  	
  Exculpatory
  Provisions.

  	
   

  
	
  Section
  8.4

  	
  Reliance
  by the Administrative Agent.

  	
   

  
	
  Section 8.5

  	
  Notice of Default.

  	
   

  
	
  Section
  8.6

  	
  Non-Reliance
  on the Administrative Agent and Other Lenders.

  	
   

  
	
  Section 8.7

  	
  Indemnification.

  	
   

  
	
  Section
  8.8

  	
  Administrative
  Agent in its Individual Capacity.

  	
   

  
	
  Section 8.9

  	
  Successor
  Administrative Agent.

  	
   

  
	
  Section 8.10

  	
  Nature of Duties.

  	
   

  
	
  Section 8.11

  	
  Other Agents;
  Arrangers.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX MISCELLANEOUS

  	
   

  
	
  Section 9.1

  	
  Amendments and
  Waivers.

  	
   

  
	
  Section
  9.2

  	
  Notices.

  	
   

  

 

ii

 

	
  Section 9.3

  	
  No Waiver;
  Cumulative Remedies.

  	
   

  
	
  Section 9.4

  	
  Payment of
  Expenses and Taxes.

  	
   

  
	
  Section
  9.5

  	
  Successors
  and Assigns; Participations; Purchasing Lenders.

  	
   

  
	
  Section 9.6

  	
  Adjustments; Set-off.

  	
   

  
	
  Section
  9.7

  	
  Table
  of Contents and Section Headings.

  	
   

  
	
  Section 9.8

  	
  Counterparts.

  	
   

  
	
  Section 9.9

  	
  Effectiveness.

  	
   

  
	
  Section 9.10

  	
  Severability.

  	
   

  
	
  Section 9.11

  	
  Integration.

  	
   

  
	
  Section 9.12

  	
  Governing Law.

  	
   

  
	
  Section
  9.13

  	
  Consent
  to Jurisdiction and Service of Process.

  	
   

  
	
  Section 9.14

  	
  Confidentiality.

  	
   

  
	
  Section 9.15

  	
  Acknowledgments.

  	
   

  
	
  Section 9.16

  	
  Waivers of Jury
  Trial.

  	
   

  
	
  Section 9.17

  	
  Judgment Currency.

  	
   

  
	
  Section 9.18

  	
  USA Patriot Act
  Notice.

  	
   

  
	
  Section
  9.19

  	
  Joint
  and Several Liability; Maximum Liability; Waiver of Subrogation.

  	
   

  

 

iii

 

	
  Schedules

  	
   

  
	
   

  	
   

  
	
  Schedule 1.1

  	
  Account Designation
  Letter

  
	
  Schedule 2.1(a)

  	
  Schedule of Lenders and
  Commitments

  
	
  Schedule 2.1(b)(i)

  	
  Form of Notice of
  Borrowing

  
	
  Schedule 2.1(e)

  	
  Form of Revolving Note

  
	
  Schedule 2.3(d)

  	
  Form of Swingline Note

  
	
  Schedule 2.9

  	
  Form of Notice of
  Conversion/Extension

  
	
  Schedule 4.1(b)

  	
  Form of Secretary’s
  Certificate

  
	
  Schedule 4.1(f)

  	
  Form of Solvency
  Certificate

  
	
  Schedule 9.2

  	
  Schedule of Lenders’
  Lending Offices

  
	
  Schedule 9.6(c)

  	
  Form of Commitment
  Transfer Supplement

  

 

iv

 

This CREDIT AGREEMENT, dated as of
April 5, 2004, is by and among IMS HEALTH INCORPORATED,  a
Delaware corporation (the “Company”), IMS AG, a Swiss corporation
and a wholly-owned subsidiary of the Company (the “Swiss Borrower”), IMS JAPAN
K.K., a Japanese corporation and a wholly-owned subsidiary of the
Company (the “Japanese Borrower”; and together with the Company and the
Swiss Borrower, each a “Borrower” and collectively, the “Borrowers”),
the several banks and other financial institutions as may from time to time
become parties to this Credit Agreement (collectively, the “Lenders”;
and individually, a “Lender”), and WACHOVIA BANK, NATIONAL ASSOCIATION, a
national banking association, as administrative agent for the Lenders hereunder
(in such capacity, the “Administrative Agent”).

 

W I T N E S S E T
H:

 

WHEREAS, the
Company has requested that the Lenders make loans and other financial accommodations
to the Borrowers in the amount of up to $270,000,000, as more particularly
described herein;

 

WHEREAS, the
Lenders have agreed to make such loans and other financial accommodations to
the Borrowers on the terms and conditions contained herein;

 

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

 

ARTICLE
I

DEFINITIONS AND OTHER PROVISIONS

 

Section 1.1            Defined
Terms.

 

As used in this Credit
Agreement, terms defined in the preamble to this Credit Agreement have the
meanings therein indicated, and the following terms have the following
meanings:

 

“364-Day Credit
Agreement” means that certain 364-Day Credit Agreement dated as of the date
hereof among the Company, the Lenders identified therein and Wachovia, as
administrative agent, as amended, modified, supplemented, extended or restated
from time to time.

 

“Account Designation
Letter” shall mean the Notice of Account Designation Letter dated the
Closing Date from the Borrowers to the Administrative Agent substantially in
the form attached hereto as Schedule 1.1.

 

“Administrative Agent”
shall have the meaning set forth in the preamble of this Credit Agreement and
any successors in such capacity.

 

 

“Administrative
Agent’s Office” shall mean, with respect to any currency, the
Administrative Agent’s address and, as appropriate, account as set forth on Schedule 9.2
with respect to such currency, or such other address or account with respect to
such currency as the Administrative Agent may from time to time notify to the
Borrowers and the Lenders.

 

“Affected Lender”
shall have the meaning set forth in Section 2.14(a).

 

“Affiliate” shall
mean as to any Person, any other Person which, directly or indirectly,
controls, is controlled by, or is under common control with, such Person
(excluding any trustee under, or any committee with responsibility for
administering, any Plan).  For purposes
of this definition, a Person shall be deemed to be “controlled by” another
Person if such Person possesses, directly or indirectly, power either
(a) to vote 20% or more of the securities (on a fully diluted basis)
having ordinary voting power for the election of directors or managing general
partners of such Person or (b) to direct or cause the direction of the
management and policies of such Person whether by contract or otherwise.

 

“Aggregate Revolving
Committed Amount” shall have the meaning set forth in Section 2.1.

 

“Alternate Base Rate”
shall mean, for any day, a rate per annum equal to the greater 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, at any time, the
rate of interest per annum publicly announced from time to time by Wachovia at
its principal office in Charlotte, North Carolina as its prime rate.  Each change in the Prime Rate shall be
effective as of the opening of business on the day such change in the Prime
Rate occurs.  The parties hereto
acknowledge that the rate announced publicly by Wachovia as its Prime Rate is
an index or base rate and shall not necessarily be its lowest or best rate
charged to its customers or other banks; and “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 on
the next succeeding Business Day, the average of the quotations for the day of
such transactions received by the Administrative Agent from three federal funds
brokers of recognized standing selected by it. 
If for any reason the Administrative Agent shall have determined (which
determination shall be conclusive in the absence of manifest error) that it is
unable to ascertain the Federal Funds Effective Rate, including the inability
or failure of the Administrative Agent to obtain sufficient quotations in
accordance with the terms above, the Alternate Base Rate shall be determined
without regard to clause (b) of the first sentence of this definition
until the circumstances giving rise to such inability no longer exist.  Any change in the Alternate Base Rate due to
a change in the Prime Rate or the Federal Funds Effective Rate shall be
effective on the opening of business on the date of such change.

 

“Alternate Base Rate
Loans” shall mean Loans that bear interest at an interest rate based on the
Alternate Base Rate.

 

2

 

“Applicable Percentage”
shall mean, for any day, the rate per annum set forth below opposite the
applicable level then in effect, it being understood that the Applicable
Percentage for (a) Revolving Loans which are Alternate Base Rate Loans
shall be the percentage set forth under the column “Alternate Base Rate Margin
for Revolving Loans”, (b) Revolving Loans which are LIBOR Rate Loans shall
be the percentage set forth under the column “LIBOR Rate Margin for Revolving
Loans and Letter of Credit Fee”, (c) the Letter of Credit Fee shall be the
percentage set forth under the column “LIBOR Rate Margin for Revolving Loans
and Letter of Credit Fee”, and (d) the Commitment Fee shall be the percentage
set forth under the column “Commitment Fee”:

 

	
  Level

  	
   

  	
  Leverage

  Ratio

  	
   

  	
  Alternate

  Base Rate

  Margin

  for

  Revolving

  Loans

  	
   

  	
  LIBOR

  Rate

  Margin for

  Revolving

  Loans

  and Letter

  of

  Credit Fee

  	
   

  	
  Commitment

  Fee

  	
   

  
	
  I

  	
   

  	
  >
  2.00 to 1.0

  	
   

  	
  0.000

  	
  %

  	
  0.950

  	
  %

  	
  0.225

  	
  %

  
	
  II

  	
   

  	
  >
  1.25 to 1.0 but < 2.00 to 1.0

  	
   

  	
  0.000

  	
  %

  	
  0.625

  	
  %

  	
  0.150

  	
  %

  
	
  III

  	
   

  	
  < 1.25 to 1.0

  	
   

  	
  0.000

  	
  %

  	
  0.450

  	
  %

  	
  0.100

  	
  %

  

 

The Applicable Percentage
shall, in each case, be determined and adjusted quarterly on the date
five (5) Business Days after the date on which the Administrative Agent
has received from the Company the quarterly financial information (in the case
of the first three Fiscal Quarters of the Company), annual financial
information (in the case of the fourth Fiscal Quarter of the Company), and
certifications required to be delivered to the Administrative Agent and the
Lenders in accordance with the provisions of Sections 5.1(a), (b)
and (c) pursuant to which the Company shall notify the Administrative
Agent of a change in the applicable pricing level based on the financial
information contained therein (each an “Interest Determination Date”).  Subject to the last sentence of this
definition, such Applicable Percentage shall be effective from such Interest
Determination Date until the next such Interest Determination Date.  Notwithstanding the foregoing, the initial
Applicable Percentages shall be set at Level II until the first Interest
Determination Date to occur after the delivery by the Company of the financial
statements and certifications required pursuant to Sections 5.1(a), (b) and (c)
for the Fiscal Quarter ended March 31, 2004. 
If the Company shall fail to provide the quarterly and annual financial
information and certifications in accordance with the provisions of Sections 5.1(a),
(b) and (c), the Applicable Percentage shall, on the date five (5)
Business Days after the date by which the Company was so required to provide
such financial information and certifications to the Administrative Agent and
the Lenders, be based on Level I until such time as such information and
certifications are provided, whereupon the Level shall be determined by the
then current Leverage Ratio.

 

3

 

“Applicable Time”
shall mean, with respect to any borrowings and payments in Foreign Currencies,
the local times in the place of settlement for such Foreign Currencies as may
be determined by the Administrative Agent to be necessary for timely settlement
on the relevant date in accordance with normal banking procedures in the place
of payment.

 

“Arranger” shall
mean Wachovia Capital Markets, LLC, together with its successors and
assigns.

 

“Bankruptcy Code”
shall mean the Bankruptcy Code in Title 11 of the United States Code,
as amended, modified, succeeded or replaced from time to time.

 

“Bilateral Credit
Facilities” shall mean the credit agreements entered into by the Company
with each of ABN AMRO Bank N.V., Barclays Bank PLC, BNP Paribas, Citizens Bank
of Massachusetts, Dresdner Bank AG (Frankfurt Branch), Fleet National Bank,
Fortis (USA) Finance LLC, Key Corporate Capital Inc., Mizuho Corporate Bank,
LTD, SunTrust Bank, The Northern Trust Company, UBS AG, Cayman Islands Branch,
Wachovia National Bank.

 

“Borrower” or “Borrowers”
shall have the meaning set forth in the first paragraph of this Credit
Agreement.

 

“Borrower Obligations”
shall mean, without duplication, (a) all of the obligations, indebtedness
and liabilities of the Borrowers to the Lenders (including the Issuing Lender)
and the Administrative Agent, whenever arising, under this Credit Agreement,
the Notes or any of the other Credit Documents including principal, interest,
fees, reimbursements and indemnification obligations and other amounts
(including, but not limited to, any interest accruing after the occurrence of a
filing of a petition of bankruptcy under the Bankruptcy Code with respect to
any Borrower, regardless of whether such interest is an allowed claim under the
Bankruptcy Code) and (b) all liabilities and obligations, whenever
arising, owing from the Borrowers or any of the Company’s Subsidiaries to any
Hedging Agreement Provider arising under any Hedging Agreement permitted
hereunder.

 

“Borrowing Date”
shall mean, in respect of any Loan, the date such Loan is made.

 

“Business Day”
shall mean a day other than a Saturday, Sunday or other day on which commercial
banks in Charlotte, North Carolina or New York, New York are
authorized or required by law to close; provided, however, that
when used in connection with a rate determination, borrowing or payment in
respect of a LIBOR Rate Loan, (a) the term “Business Day” shall also
exclude any day on which banks in London, England are not open for dealings in
deposits of Dollars or Foreign Currencies, as applicable, in the London
interbank market and (b) the term “Business Day” shall also exclude any
day on which banks are not open for foreign exchange dealings between banks in
the exchange of the home country of such foreign currency.

 

“Capital Stock” shall mean (a) in the case
of a corporation, capital stock, (b) in the case of an association or
business entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of capital stock, (c) in the case of a
partnership, partnership interests (whether general or limited), (d) in
the case of a limited liability company, membership

 

4

 

interests and
(e) any other interest or participation that confers on a Person the right
to receive a share of the profits and losses of, or distributions of assets of,
the issuing Person.

 

“Change of Control” shall mean the occurrence
of one or more of the following events: (a) any sale, lease, exchange or other
transfer (in a single transaction or a series of related transactions) of all
or substantially all of the assets of the Company to any Person or “group”
(within the meaning of the Exchange Act and the rules of the SEC thereunder as
in effect on the date hereof), (b) the acquisition or ownership, directly or
indirectly, beneficially or of record, by any Person or “group” (within the
meaning of the Exchange Act and the rules of the SEC thereunder as in effect on
the date hereof) of 35% or more of the outstanding shares of Voting Stock of
the Company, or (c) the occupation of a majority of the seats (other than
vacant seats) on the board of directors of the Company by Persons who were
neither (i) nominated by the current board of directors or (ii) appointed by
directors so nominated.

 

“Closing Date”
shall mean the date of this Credit Agreement.

 

“Code” shall mean
the Internal Revenue Code of 1986, as amended from time to time, and the
regulations promulgated and rulings issued thereunder.  Section references to the Code are to the
Code as in effect at the date of this Agreement and any subsequent provisions
of the Code amendatory thereof, supplemental thereto or substituted therefore.

 

“Commitment” shall
mean the Revolving Commitment, the LOC Commitment and the Swingline Commitment,
individually or collectively, as appropriate.

 

“Commitment Fee”
shall have the meaning set forth in Section 2.4(a).

 

“Commitment Percentage”
shall mean the Revolving Commitment Percentage and/or the LOC Commitment
Percentage, as appropriate.

 

“Commitment Period”
shall mean the period from and including the Closing Date to but not including
the Maturity Date.

 

“Commitment Transfer
Supplement” shall mean a Commitment Transfer Supplement, substantially in
the form of Schedule 9.6(c).

 

“Company” shall
have the meaning set forth in the first paragraph of this Credit Agreement.

 

“Consolidated Capital
Expenditures” shall mean, for any period of four consecutive Fiscal
Quarters, all capital expenditures of the Company and its Subsidiaries
(including without limitation additions to computer software) on a consolidated
basis for such period, all as determined in accordance with GAAP.

 

“Consolidated EBITDA”
shall mean, for any period of four consecutive Fiscal Quarters, the Company and
its Subsidiaries’ income before income taxes plus, (i) Consolidated Interest
Expense, (ii) depreciation and amortization expense, (iii) income (or
minus loss) from

 

5

 

discontinued operations,
and (iv) charges for the in-process, research and development related to
an acquisition, all as the same are or would be set forth in a statement of the
income of the Company for such period.

 

“Consolidated Interest
Expense” shall mean, for any period of four consecutive Fiscal Quarters,
the total interest expense of the Company and its Subsidiaries, as the same
would be set forth in a statement of income of the Company and its Subsidiaries
for such period.

 

“Consolidated Total
Debt” shall mean, as of any particular time and after eliminating
inter-company items, all Indebtedness of the Company and its Subsidiaries, all
as consolidated and determined in accordance with GAAP, but shall not include
Hedging Agreements.

 

“Contractual
Obligation” shall mean, as to any Person, any provision of any security
issued by such Person or of any contract, agreement, instrument or undertaking
to which such Person is a party or by which it or any of its property is bound.

 

“Credit Agreement”
shall mean this Credit Agreement, as amended, modified or supplemented from
time to time in accordance with its terms.

 

“Credit Documents”
shall mean this Credit Agreement, each of the Notes, the Letters of Credit, any
Commitment Transfer Supplement and the LOC Documents and all other agreements,
documents, certificates and instruments delivered to the Administrative Agent
or any Lender by any Borrower in connection therewith (other than any
agreement, document, certificate or instrument related to a Hedging Agreement).

 

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

 

“Defaulting Lender”
shall mean, at any time, any Lender that, at such time (a) has failed to
make a Loan required pursuant to the term of this Credit Agreement, including
the funding of a Participation Interest in accordance with the terms hereof
absent a good faith dispute relating to the Credit Agreement or the Extensions
of Credit hereunder, (b) has failed to pay to the Administrative Agent or
any Lender an amount owed by such Lender pursuant to the terms of this Credit
Agreement absent a good faith dispute relating to the Credit Agreement or the
Extensions of Credit hereunder, or (c) has been deemed insolvent or has
become subject to a bankruptcy or insolvency proceeding or to a receiver,
trustee or similar official.

 

“Determination Date”
means with respect to any Extension of Credit:

 

(a)           in connection with the origination of
any new Extension of Credit, the Business Day which is the earliest of the date
such credit is extended, the date the rate is set or the date the bid is
accepted, as applicable;

 

(b)           in connection with any extension or
conversion or continuation of an existing Loan, the last Business Day of each
month or the Business Day which is the

 

6

 

earlier of the date such advance is extended, converted or continued,
or the date the rate is set, as applicable, in connection with any extension,
conversion or continuation;

 

(c)           in connection with any extension of
an existing Letter of Credit, the last Business Day of each month or the
Business Day which is the earlier of the date such Letter of Credit is
extended; or

 

(d)           the date of any reduction of the
Revolving Committed Amount pursuant to the terms of Section 2.5; and

 

in addition to the
foregoing, such additional dates not more frequently than once a month as may
be determined by the Administrative Agent. 
For purposes of determining availability hereunder, the rate of exchange
for any Foreign Currency shall be the Spot Rate.

 

“Dollar Amount”
shall mean, at any time, (a) with respect to Dollars or an amount
denominated in Dollars, such amount and (b) with respect to an amount of
any Foreign Currency or an amount denominated in such Foreign Currency, the
equivalent amount thereof in Dollars as determined by the Administrative Agent
at such time on the basis of the Spot Rate (determined in respect of the most
recent Revaluation Date) for the purchase of Dollars with such Foreign
Currency.

 

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

 

“Domestic Lending
Office” shall mean, initially, the office of each Lender designated as such
Lender’s Domestic Lending Office shown on Schedule 9.2; and
thereafter, such other office of such Lender as such Lender may from time to
time specify to the Administrative Agent and the Borrowers as the office of
such Lender at which Alternate Base Rate Loans of such Lender are to be made.

 

“EMU” shall mean Economic and Monetary Union as
contemplated in the Treaty on European Union.

 

“EMU Legislation” shall mean legislative
measures of the European Council (including without limitation European Council
regulations) for the introduction of, changeover to or operation of a single or
unified European currency (whether known as the Euro or otherwise), being in
part the implementation of the third stage of EMU.

 

“Environmental Laws”
shall mean any and all applicable federal, state, local or municipal laws,
rules, orders, regulations, statutes, ordinances, codes, decrees, requirements
of any Governmental Authority regulating, relating to or imposing liability or
standards of conduct concerning environmental protection measures, including
without limitation, Hazardous Materials, as now or may at any time be in effect
during the term of this Credit Agreement.

 

“ERISA” shall mean
the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the regulations promulgated and the rulings issued thereunder.  Section references to ERISA are to ERISA as
in effect at the date of this Credit Agreement and any

 

7

 

subsequent provisions of
ERISA amendatory thereof, supplemental thereto or substituted therefor.

 

“ERISA Affiliate”
shall mean each person (as defined in Section 3(9) of ERISA) which together
with the Company or any other Borrower would be deemed a “single employer” (i)
within the meaning of Section 414(b), (c), (m) or (o) of the Code or (ii) as a
result of the Company or any other Borrower being or having been a general
partner of such person.

 

“Euro” shall mean the single currency of
Participating Member States of the European Union.

 

“Euro Unit” shall
mean the currency unit of the Euro.

 

“Eurodollar Reserve
Percentage” shall mean for any day, the percentage (expressed as a decimal
and rounded upwards, if necessary, to the next higher 1/100th of 1%) which is
in effect for such day as prescribed by the Federal Reserve Board (or any
successor) for determining the maximum reserve requirement (including without
limitation any basic, supplemental or emergency reserves) in respect of
Eurocurrency liabilities, as defined in Regulation D of such Board as in
effect from time to time, or any similar category of liabilities for a member
bank of the Federal Reserve System in New York City.

 

“Event of Default”
shall mean any of the events specified in Section 7.1; provided, however,
that any requirement for the giving of notice or the lapse of time, or both, or
any other condition, has been satisfied.

 

“Exchange Act”
shall mean the U.S. Securities Exchange Act of 1934, as amended.

 

“Extension of Credit”
shall mean, as to any Lender, the making of a Loan by such Lender or the
issuance of, or participation in, a Letter of Credit or Loan by such Lender.

 

“Federal Funds
Effective Rate” shall have the meaning set forth in the definition of
“Alternate Base Rate”.

 

“Fee Letter” shall
mean the letter agreement dated December 2, 2003 addressed to the Company from
the Administrative Agent and the Arranger, as amended, modified or otherwise
supplemented.

 

“Fiscal Quarter”
shall mean any quarter of a Fiscal Year.

 

“Fiscal Year”
shall mean any period of twelve consecutive calendar months ending on December
31; references to a Fiscal Year with a number corresponding to any calendar
year (e.g., the 2003 Fiscal Year) refer to the Fiscal Year ending on the
December 31 occurring during such calendar year.

 

“Fixed Charge Coverage
Ratio” shall mean, for any Fiscal Quarter, the ratio of
(a) Consolidated EBITDA to (b) Fixed Charges as of the last day of such
Fiscal Quarter.

 

8

 

“Fixed Charges”
shall mean, with respect to the Company and its Subsidiaries on a consolidated
basis, for the four Fiscal Quarters most recently concluded, the sum of (i)
Consolidated Interest Expense plus (ii) Scheduled Funded Debt Payments plus
(iii) Consolidated Capital Expenditures plus (v) additions to computer
software.

 

“Foreign Borrower”
shall mean either of the Swiss Borrower or the Japanese Borrower.

 

“Foreign Currency”
shall mean (a) Euros, (b) Swiss Francs, (c) Japanese Yen and (d) any other
freely available currency which is freely transferable and freely convertible
into Dollars and in which dealings in deposits are carried on in the London
interbank market, which shall be requested by the Company and approved by each
Lender.

 

“Foreign Currency
Equivalent” shall mean, with respect to any amount denominated in Dollars,
the equivalent amount thereof in the applicable Foreign Currency as determined
by the Administrative Agent at such time on the basis of the Spot Rate
(determined in respect of the most recent Revaluation Date) for the purchase of
such Foreign Currency with Dollars.

 

“Foreign Currency
Fronting Bank” shall mean the Administrative Agent or, to the extent any
Foreign Borrower would suffer adverse tax consequences as a result of a Foreign
Currency Loan being funded to such Foreign Borrower by the Administrative
Agent, any other Lender who from time to time agrees to serve as a fronting
bank hereunder, as may be agreed upon by such Lender, the Administrative Agent
and the Company.

 

“Foreign Currency
Participant” shall mean any Lender who is unable to fund a Foreign Currency
Loan in a particular Foreign Currency to the extent such Lender has notified the Foreign Currency Fronting Bank
in writing as of (i) the Closing Date or (ii) the date such Lender becomes a
Lender pursuant to a Commitment Transfer Supplement delivered pursuant to
Section 9.5 that such Lender is unable to fund Foreign Currency Loans in such
Foreign Currency.

 

“Foreign Currency Loan”
shall mean any Loan denominated in a Foreign Currency.

 

“Fronted Foreign Currency
Loans” shall have the meaning set forth in Section 2.1(b)(iii).

 

“GAAP” shall mean
generally accepted accounting principles, applied on a basis consistent with
the principles used in the preparation of the Company’s annual balance sheet
and income statement as of and for the year ending December 31, 2003, copies of
which have previously been delivered to the Administrative Agent, with such
changes as may be approved by the Company’s independent auditors.

 

“Government Acts”
shall have the meaning set forth in Section 2.19(a).

 

“Governmental
Authority” shall mean any nation or government, any state or other
political subdivision thereof and any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to
government.

 

9

 

“Hazardous Materials”
shall mean any hazardous materials, hazardous wastes, hazardous constituents,
hazardous or toxic substances, petroleum products (including crude oil or any
fraction thereof), defined or regulated as such in or under any Environmental
Law.

 

“Hedging Agreement
Provider” shall mean any Person that enters into a Hedging Agreement with a
Borrower or any of its Subsidiaries that is permitted hereunder to the extent
such Person is a Lender, an Affiliate of a Lender or any other Person that was
a Lender (or an Affiliate of a Lender) at the time it entered into the Hedging
Agreement but has ceased to be a Lender (or whose Affiliate has ceased to be a
Lender) under the Credit Agreement.

 

“Hedging Agreements”
shall mean, with respect to any Person, any interest rate swap, cap or collar
agreement or similar arrangement between such Person and one or more
counterparties, any foreign currency exchange agreement, currency protection
agreements, commodity purchase or option agreements or other interest or
exchange rate or commodity price hedging agreements.

 

“Indebtedness”
shall mean, as to any Person, at a particular time without duplication, (a) all
indebtedness of such Person for borrowed money or on account of advances made
to such person or for the deferred purchase price of property (excluding
accounts payable to trade creditors for goods and services which are incurred
in the ordinary course of business and on customary trade terms), in respect of
which such Person is liable or evidenced by any bond, debenture, note or other
instrument, (b) indebtedness arising under acceptance facilities and the face
amount of all letters of credit issued for the account of such person and,
without duplication, all drafts drawn thereunder, (c) all liabilities secured
by any lien on any property owned by such Person even though it has not assumed
or otherwise become liable for the payment thereof, (d) obligations under
financial leases; (e) all indebtedness of others with respect to which such
person has provided a guarantee or otherwise has agreed to become directly or
indirectly liable; and (f) all obligations under Hedging Agreements.

 

“Interest
Determination Date” shall have the meaning assigned thereto in the
definition of “Applicable Percentage”.

 

“Interest Payment Date”
shall mean (a) as to any Alternate Base Rate Loan or Swingline Loan, the
last Business Day of each March, June, September and December and on the
applicable Maturity Date, (b) as to any LIBOR Rate Loan having an Interest
Period of three months or less, the last day of such Interest Period,
(c) as to any LIBOR Rate Loan having an Interest Period longer than three
months, each day which is three months after the first day of such Interest
Period and the last day of such Interest Period and (d) as to any Loan which is
the subject of a mandatory prepayment required pursuant to Section 2.6(b),
the date on which such mandatory prepayment is due.

 

“Interest Period”
shall mean, with respect to any LIBOR Rate Loan,

 

(a)             initially, the period commencing on
the Borrowing Date or conversion date, as the case may be, with respect to such
LIBOR Rate Loan and ending fourteen days, one, two, three, six or twelve months
thereafter (in the case of twelve months, only with

 

10

 

the prior consent of the
Administrative Agent and each of the Lenders (in its sole discretion)), subject
to availability, as selected by the applicable Borrower in the Notice of Borrowing
or Notice of Conversion given with respect thereto; and

 

(b)             thereafter, each period commencing
on the last day of the immediately preceding Interest Period applicable to such
LIBOR Rate Loan and ending fourteen days, one, two, three, six or twelve months
thereafter (in the case of twelve months, only with the prior consent of the
Administrative Agent and each of the Lenders (in its sole discretion)), as
selected by the applicable Borrower by irrevocable notice to the Administrative
Agent not less than three Business Days prior to the last day of the then
current Interest Period with respect thereto;

 

provided
that the foregoing provisions are subject to the following:

 

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

 

(iii)          if the applicable Borrower shall fail
to give notice as provided above, such Borrower shall be deemed to have
selected an Alternate Base Rate Loan to replace the affected LIBOR Rate Loan;

 

(iv)          no Interest Period in respect of any
Loan shall extend beyond the applicable Maturity Date; and

 

(v)           no more than eight (8) LIBOR
Rate Loans may be in effect at any time. 
For purposes hereof, LIBOR Rate Loans with different Interest Periods
shall be considered as separate LIBOR Rate Loans, even if they shall begin on
the same date and have the same duration, although borrowings, extensions and
conversions may, in accordance with the provisions hereof, be combined at the
end of existing Interest Periods to constitute a new LIBOR Rate Loan with a
single Interest Period.

 

“Issuing Lender”
shall mean Wachovia.

 

“Issuing Lender Fees”
shall have the meaning set forth in Section 2.4(c).

 

“Japanese Borrower”
shall have the meaning set forth in the first paragraph of this Credit
Agreement.

 

11

 

“Japanese Yen” or
“JPY” shall mean Japanese yen, the lawful currency of Japan.

 

“Lender” shall
have the meaning set forth in the first paragraph of this Credit Agreement.

 

“Letter of Credit”
shall mean any letter of credit issued by the Issuing Lender pursuant to the
terms hereof, as such Letter of Credit may be amended, modified, extended,
renewed or replaced from time to time.

 

“Letter of Credit
Facing Fee” shall have the meaning set forth in Section 2.4(b).

 

“Letter of Credit Fee”
shall have the meaning set forth in Section 2.4(b).

 

“Leverage Ratio”
shall mean, for any Fiscal Quarter, the ratio of (a) Consolidated Total
Debt to (b) Consolidated EBITDA as of the last day of such Fiscal Quarter.

 

“LIBOR” shall
mean, for any LIBOR Rate Loan for any Interest Period therefor, the rate per
annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on
Telerate Page 3750 (or any successor page) as the London interbank offered rate
for deposits in Dollars or the applicable Foreign Currency, as appropriate, at
approximately 11:00 A.M. (London time) two Business Days prior to the
first day of such Interest Period for a term comparable to such Interest
Period.  If for any reason such rate is
not available, the term “LIBOR” shall mean, for any LIBOR Rate Loan for any
Interest Period therefor, the rate per annum (rounded upwards, if necessary, to
the nearest 1/100 of 1%) appearing on Reuters Screen LIBO Page as the London
interbank offered rate for deposits in Dollars or the applicable Foreign
Currency, as appropriate, at approximately 11:00 A.M. (London time) two
Business Days prior to the first day of such Interest Period for a term comparable
to such Interest Period; provided, however, if more than one rate
is specified on Reuters Screen LIBO Page, the applicable rate shall be the
arithmetic mean of all such rates (rounded upwards, if necessary, to the
nearest 1/100 of 1%).  If, for any reason,
neither of such rates is available, then “LIBOR” shall mean the rate per annum
at which, as determined by the Administrative Agent, Dollars in an amount
comparable to the Loans then requested are being offered to leading banks at
approximately 11:00 A.M. London time, two (2) Business Days prior to
the commencement of the applicable Interest Period for settlement in
immediately available funds by leading banks in the London interbank market for
a period equal to the Interest Period selected.

 

“LIBOR Lending Office”
shall mean, initially, the office(s) of each Lender designated as such Lender’s
LIBOR Lending Office shown on Schedule 9.2; and thereafter, such
other office of such Lender as such Lender may from time to time specify to the
Administrative Agent and the Borrowers as the office of such Lender at which
the LIBOR Rate Loans of such Lender are to be made.

 

12

 

“LIBOR Rate” shall
mean a rate per annum (rounded upwards, if necessary, to the next higher
1/100th of 1%) determined by the Administrative Agent pursuant to the following
formula:

 

	
  LIBOR Rate =

  	
   

  	
  LIBOR

  
	
   

  	
   

  	
  1.00 -
  Eurodollar Reserve Percentage

  

 

“LIBOR Rate Loan”
shall mean Loans the rate of interest applicable to which is based on the LIBOR
Rate.

 

“Lien” shall mean
any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), or preference, priority or other
security agreement or preferential arrangement of any kind or nature whatsoever
(including, without limitation, any conditional sale or other title retention
agreement and any financial lease having substantially the same economic effect
as any of the foregoing).

 

“Loan” shall mean
a Revolving Loan and/or a Swingline Loan, as appropriate.

 

“LOC Commitment”
shall mean the commitment of the Issuing Lender to issue Letters of Credit and
with respect to each Lender, the commitment of such Lender to purchase
participation interests in the Letters of Credit up to such Lender’s LOC
Committed Amount as specified in Schedule 2.1(a), as such amount
may be reduced from time to time in accordance with the provisions hereof.

 

“LOC Commitment
Percentage” shall mean, for each Lender, the percentage identified as its
LOC Commitment Percentage on Schedule 2.1(a), as such percentage
may be modified in connection with any assignment made in accordance with the
provisions of Section 9.6(c).

 

“LOC Committed Amount”
shall mean, collectively, the aggregate amount of all of the LOC Commitments of
the Lenders to issue and participate in Letters of Credit as referenced in
Section 2.2 and, individually, the amount of each Lender’s LOC Commitment
as specified in Schedule 2.1(a).

 

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

 

“LOC Obligations”
shall mean, at any time, the sum of (a) the maximum amount which is, or at
any time thereafter may become, available to be drawn under Letters of Credit
then outstanding, assuming compliance with all requirements for drawings
referred to in such Letters of Credit plus (b) the aggregate amount
of all drawings under Letters of Credit honored by the Issuing Lender but not
theretofore reimbursed.

 

13

 

“Mandatory Borrowing”
shall have the meaning set forth in Section 2.2 or  Section 2.3(b)(ii), as
the context may require.

 

“Material Adverse
Change” shall mean a material adverse change in the financial condition,
operations, assets, business, properties or prospects of the Company,
individually or the Company and its Subsidiaries taken as a whole.

 

“Material Subsidiary” shall mean, as of any
date of determination, any Subsidiary that (a) accounted for at least five
percent (5%) of consolidated revenues of the Company and its Subsidiaries, in
each case ending on the last day of the last of the last Fiscal Quarter
immediately preceding the date as of which any such determination is made; or (b)
has assets which represent at least five percent (5%) of the consolidated
assets of the Company and its Subsidiaries as of the last day of the last
Fiscal Quarter immediately preceding the date as of which any such
determination is made; all of which, with respect to clauses (a) and (b) shall
be as reflected on the financial statements of the Company for the period, or
as of the date in question. 
Notwithstanding the foregoing, each of the Foreign Borrowers shall be
deemed to be Material Subsidiaries.

 

“Maturity Date”
shall mean April 5, 2007.

 

“National Currency
Unit” shall mean a fraction or multiple of one Euro Unit expressed in units
of the former national currency of a Participating Member State.

 

“Note” or “Notes”
shall mean the Revolving Notes and/or the Swingline Note, collectively,
separately or individually, as appropriate.

 

“Notice of Borrowing”
shall mean the written notice of borrowing as referenced and defined in
Section 2.1(b)(i) or 2.3(b)(i), as appropriate.

 

“Notice of
Conversion/Extension” shall mean the written notice of conversion or
extension as referenced and defined in Section 2.9.

 

“Participant”
shall have the meaning set forth in Section 9.6(b).

 

“Participating Member
State” shall mean each country so described in any EMU Legislation.

 

“Participation
Interest” shall mean the purchase by a Lender of a participation interest
in Letters of Credit as provided in Section 2.2 and in Swingline Loans as
provided in Section 2.3.

 

“PBGC” shall mean
the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of
Title IV of ERISA.

 

“Periodical SEC Report”
shall mean any report on Form 10-K or 10-Q of the Company filed with the SEC
pursuant to Sections 13(a) and 15(d) of the Exchange Act for the most recently
concluded Fiscal Year or Fiscal Quarter, as applicable.

 

14

 

“Person” shall
mean an individual, partnership, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint
venture, Governmental Authority or other entity of whatever nature.

 

“Plan” shall mean
any multi-employer or single-employer plan as defined in Section 4001 of ERISA,
which is maintained or contributed to by (or to which there is an obligation to
contribute of) the Company or a Subsidiary of the Company or an ERISA Affiliate
and each plan for the five-year period immediately following the latest date,
on which the Company or a Subsidiary of the Company or an ERISA Affiliate
maintained, contributed to or has an obligation to contribute to such plan.

 

“Prime Rate” shall
have the meaning set forth in the definition of Alternate Base Rate.

 

“Purchasing Lenders”
shall have the meaning set forth in Section 9.6(c).

 

“Register” shall
have the meaning set forth in Section 9.6(d).

 

“Related Fund”
shall mean, with respect to any Lender or other Person who invests in
commercial bank loans in the ordinary course of business, any other fund or
trust or entity that invests in commercial bank loans in the ordinary course of
business and is advised or managed by such Lender, by an Affiliate of such
Lender or other Persons or the same investment advisor as such Lender or by an
Affiliate of such Lender or investment advisor.

 

“Reportable Event”
shall mean any of the events set forth in Section 4043(c) of ERISA with
respect to a Plan, other than those events as to which the thirty-day notice
period is waived under the regulations promulgated thereunder.

 

“Required Lenders”
shall mean, at any time, Lenders holding in the aggregate a majority of
(a) the Commitments (and Participation Interests therein) or (b) if
the Commitments have been terminated, the aggregate principal Dollar Amount
(determined as of the most recent Determination Date) of the outstanding Loans
and Participation Interests (including Fronted Foreign Currency Loans of the
Foreign Currency Participants and the Participation Interests of the Issuing
Lender in any Letters of Credit and of the Swingline Lender in Swingline Loans)
in provided, however, that if any Lender shall be a Defaulting
Lender at such time, then there shall be excluded from the determination of
Required Lenders, the Borrower Obligations (including Participation Interests)
owing to such Defaulting Lender and such Defaulting Lender’s Commitments, or
after termination of the Commitments, the principal balance of the Borrower
Obligations owing to such Defaulting Lender.

 

“Requirement of Law”
shall mean, as to any Person, the certificate of incorporation and bylaws or
other organizational or governing documents of such Person, and each law,
treaty, rule or regulation or determination of an arbitrator or a court or
other Governmental Authority, in each case applicable to or binding upon such
Person or any of its property or to which such Person or any of its property is
subject.

 

15

 

“Responsible Officer”
shall mean, as to any Borrower, the Chief Executive Officer, the President, the
Chief Financial Officer, the Treasurer or any other officer acting in a
substantially similar capacity.

 

“Revaluation Date”
shall mean each of the following: 
(a) each date a LIBOR Rate Loan denominated in a Foreign Currency
is made pursuant to Section 2.1; (b) each date a LIBOR Rate Loan
denominated in a Foreign Currency is continued pursuant to Section 2.9;
(c) the last Business Day of each calendar month; and (d) such
additional dates as the Administrative Agent or the Required Lenders shall
specify.

 

“Revolving Commitment”
shall mean, with respect to each Lender, the commitment of such Lender to make
Revolving Loans in an aggregate principal Dollar Amount at any time outstanding
up to such Lender’s Revolving Committed Amount.

 

“Revolving Commitment
Percentage” shall mean, for each Lender, the percentage identified as its
Revolving Commitment Percentage on Schedule 2.1(a), as such
percentage may be modified in connection with any assignment made in accordance
with the provisions of Section 9.6(c).

 

 “Revolving Committed Amount” shall
mean the amount of each Lender’s Revolving Commitment as specified on Schedule 2.1(a),
as such amount may be reduced from time to time in accordance with the
provisions hereof.

 

“Revolving Loans”
shall have the meaning set forth in Section 2.1.

 

“Revolving Note”
or “Revolving Notes” shall mean the promissory notes of the Borrowers in
favor of each of the Lenders evidencing the Revolving Loans provided pursuant
to Section 2.1(e), individually or collectively, as appropriate, as such
promissory notes may be amended, modified, supplemented, extended, renewed or replaced
from time to time.

 

“Sale” means any
sale, transfer, assignment, lease, conveyance, exchange, swap or other
disposition.

 

“Scheduled Funded Debt
Payments” shall mean, as of any date of determination, the sum of all
scheduled payments of principal by the Company and its Subsidiaries made on
Indebtedness classified as “long-term” under GAAP for the four consecutive
Fiscal Quarters prior to such date of determination.

 

“SEC” shall mean
the U.S. Securities and Exchange Commission.

 

“Spot Rate” shall
mean, with respect to any Foreign Currency, the rate quoted by Wachovia as the
spot rate for the purchase by Wachovia of such Foreign Currency with Dollars
through its principal foreign exchange trading office at approximately
11:00 a.m. on the date two Business Days prior to the date as of which the
foreign exchange computation is made.

 

16

 

“Subsidiary” shall
mean any corporation or other entity of which the Company owns, directly or
indirectly, such number of outstanding shares or other voting interests as have
more than fifty percent (50%) of the ordinary voting power for the election of
directors.  Unless otherwise qualified,
all references to a “Subsidiary” or to “Subsidiaries” in this Credit Agreement
shall refer to a Subsidiary or Subsidiaries of the Company.

 

“Swingline Commitment”
shall mean the commitment of the Swingline Lender to make Swingline Loans in an
aggregate principal amount at any time outstanding up to the Swingline
Committed Amount, and the commitment of the Lenders to purchase participation
interests in the Swingline Loans as provided in Section 2.3(b)(ii), as
such amounts may be reduced from time to time in accordance with the provisions
hereof.

 

“Swingline Committed
Amount” shall mean the amount of the Swingline Lender’s Swingline
Commitment as specified in Section 2.3(a).

 

“Swingline Lender”
shall mean the Administrative Agent.

 

“Swingline Loan”
or “Swingline Loans” shall have the meaning set forth in
Section 2.3(a).

 

“Swingline Note”
shall mean the promissory note of each of the Borrowers in favor of the
Swingline Lender evidencing the Swingline Loans provided pursuant to
Section 2.3(d), as such promissory note may be amended, modified,
supplemented, extended, renewed or replaced from time to time.

 

“Swiss Borrower”
shall have the meaning set forth in the first paragraph of this Credit
Agreement.

 

“Swiss Francs” or
“CHF” shall mean swiss francs, the lawful currency of Switzerland.

 

“Taxes” shall have
the meaning set forth in Section 2.19.

 

“Tranche” shall
mean the collective reference to LIBOR Rate Loans whose Interest Periods begin
and end on the same day.  A Tranche may
sometimes be referred to as a “LIBOR Tranche”.

 

“Transfer Effective
Date” shall have the meaning set forth in each Commitment Transfer
Supplement.

 

“Treaty on European
Union” shall mean the Treaty of Rome of March 25, 1957, as amended by
the Single European Act 1986 and the Maastricht Treaty (which was signed at
Maastricht on February 1, 1992 and came into force on November 1,
1993), as amended from time to time.

 

“Type” shall mean,
as to any Loan, its nature as an Alternate Base Rate Loan or LIBOR Rate Loan,
as the case may be.

 

17

 

“Voting Stock”
shall mean, with respect to any Person, Capital Stock issued by such Person the
holders of which are ordinarily, in the absence of contingencies, entitled to
vote for the election of directors (or persons performing similar functions) of
such Person, even though the right so to vote has been suspended by the
happening of such a contingency.

 

“Wachovia” shall
mean Wachovia Bank, National Association, together with its successors and/or
assigns.

 

Section
1.2            Other Definitional
Provisions.

 

(a)           Unless otherwise specified therein,
all terms defined in this Credit Agreement shall have the defined meanings when
used in the Notes or other Credit Documents or any certificate or other
document made or delivered pursuant hereto.

 

(b)           The words “hereof”, “herein” and
“hereunder” and words of similar import when used in this Credit Agreement
shall refer to this Credit Agreement as a whole and not to any particular
provision of this Credit Agreement, and Section, subsection, Schedule and
Exhibit references are to this Credit Agreement unless otherwise specified.

 

(c)           The meanings given to terms defined
herein shall be equally applicable to both the singular and plural forms of
such terms.

 

Section 1.3            Accounting
Terms.

 

Unless otherwise
specified herein, all accounting terms used herein shall be interpreted, all
accounting determinations hereunder shall be made, and all financial statements
required to be delivered hereunder shall be prepared in accordance with GAAP
applied on a basis consistent with the most recent audited consolidated
financial statements of the Company delivered to the Lenders; provided
that, if the Company shall notify the Administrative Agent that it wishes to
amend any covenant in Section 6.6 to eliminate the effect of any change in
GAAP on the operation of such covenant (or if the Administrative Agent notifies
the Company that the Required Lenders wish to amend Section 6.6 for such
purpose), then the Company’s compliance with such covenant shall be determined
on the basis of GAAP in effect immediately before the relevant change in GAAP
became effective, until either such notice is withdrawn or such covenant is
amended in a manner satisfactory to the Company and the Required Lenders.

 

Notwithstanding the
above, the parties hereto acknowledge and agree that, for purposes of all calculations
made in determining compliance for any applicable period with the financial
covenants set forth in Section 6.6, (i) beginning after consummation
of any acquisition, (A) income statement items and other balance sheet
items (whether positive or negative) attributable to the target acquired in
such transaction shall be included in such calculations to the extent relating
to such applicable period, subject to adjustments mutually acceptable to the
Company and the Administrative Agent, and (B) Indebtedness of a target
which is retired in connection with a acquisition shall be excluded from such
calculations and deemed to have been retired as of the first day of such
applicable period and (ii) beginning after consummation of any

 

18

 

“Sale” permitted by
Section 6.3(b), (A) income statement items and other balance sheet items
(whether positive or negative) attributable to the assets disposed of shall be
excluded in such calculations to the extent relating to such applicable period,
subject to adjustments mutually acceptable to the Company and the
Administrative Agent and (B) Indebtedness of the target of an acquisition
which is retired in connection with a Sale permitted by Section 6.3(b) shall be
excluded from such calculations and deemed to have been retired as of the first
day of such applicable period.

 

Section 1.4            Exchange Rates; Currency
Equivalents.

 

(a)           The
Administrative Agent shall determine the Spot Rates as of each Revaluation Date
to be used for calculating the Dollar Amounts of Extensions of Credit and
amounts outstanding hereunder denominated in Foreign Currencies.  Such Spot Rates shall become effective as of
such Revaluation Date and shall be the Spot Rates employed in converting any
amounts between the applicable currencies until the next Revaluation Date to
occur.  Except for purposes of financial
statements delivered by the Company hereunder or calculating financial
covenants hereunder or except as otherwise provided herein, the applicable amount
of any currency for purposes of the Credit Documents shall be such Dollar
Amount as so determined by the Administrative Agent.

 

(b)           Wherever
in this Credit Agreement in connection with an Extension of Credit, conversion,
continuation or prepayment of a Loan, an amount, such as a required minimum or
multiple amount, is expressed in Dollars, but such Extension of Credit or Loan
is denominated in a Foreign Currency, such amount shall be the relevant Foreign
Currency Equivalent of such Dollar Amount (rounded to the nearest
1,000 units of such Foreign Currency), as determined by the Administrative
Agent.

 

Section 1.5            Redenomination of Certain Foreign
Currencies and Computation of Dollar Amounts.

 

(a)           Each
obligation of the Borrowers to make a payment denominated in the National
Currency Unit of any member state of the European Union that adopts the Euro as
its lawful currency after the date hereof shall be redenominated into Euro at
the time of such adoption (in accordance with the EMU Legislation).  If, in relation to the currency of any such
member state, the basis of accrual of interest expressed in this Credit
Agreement in respect of that currency shall be inconsistent with any convention
or practice in the London interbank market for the basis of accrual of interest
in respect of the Euro, such expressed basis shall be replaced by such
convention or practice with effect from the date on which such member state
adopts the Euro as its lawful currency; provided that if any Extension
of Credit in the currency of such member state is outstanding immediately prior
to such date, such replacement shall take effect, with respect to such
Extension of Credit, at the end of the then current Interest Period.

 

(b)           Each
provision of this Credit Agreement shall be subject to such reasonable changes
of construction as the Administrative Agent may from time to time specify to be
appropriate to reflect the adoption of the Euro by any member state of the
European Union and any relevant market conventions or practices relating to the
Euro.

 

19

 

(c)           References
herein to minimum Dollar Amounts and integral multiples stated in Dollars,
where they shall also be applicable to Foreign Currency, shall be deemed to
refer to approximate Foreign Currency Equivalents.

 

Section
1.6            Additional Foreign
Currencies.

 

The Company may from time to time request that
Revolving Loans that are LIBOR Rate Loans be made in a currency other than
those specifically listed in the definition of “Foreign Currency”; provided
that such requested currency otherwise meets the requirements set forth in such
definition.  Any such request shall be
made to the Administrative Agent (which shall promptly notify each Lender
thereof) not later than 11:00 a.m., ten (10) Business Days prior to
the date of the desired borrowing in such currency.  Each Lender shall notify the Administrative Agent, not later than
11:00 a.m., seven (7) Business Days after receipt of such request whether
it consents, in its sole discretion, to making LIBOR Rate Loans in such
requested currency.  Any failure by a
Lender to respond to such request within the time period specified in the
preceding sentence shall be deemed to be a refusal by such Lender to make LIBOR
Rate Loans in such requested currency. 
If all the Lenders consent to making LIBOR Rate Loans in such requested
currency, the Administrative Agent shall so notify the Company and such
currency shall thereupon be deemed for all purposes to be a Foreign Currency
hereunder.

 

ARTICLE
II

THE LOANS; AMOUNT AND TERMS

 

Section 2.1            Revolving
Loans.

 

(a)           Revolving Commitment.  During the Commitment Period, subject to the
terms and conditions hereof, each Lender severally agrees to make revolving
credit loans (i) in Dollars and in Foreign Currencies to the Company,
(ii) in Swiss Francs to the Swiss Borrower, and (iii) in Japanese Yen
to the Japanese Borrower from time to time in an aggregate principal Dollar
Amount of up to TWO HUNDRED SEVENTY MILLION DOLLARS ($270,000,000) (as
such aggregate maximum amount may be reduced from time to time as provided in
Section 2.5, the “Aggregate Revolving Committed Amount”) for the
purposes hereinafter set forth; provided, however, that
(i) the aggregate principal Dollar Amount of revolving credit loans made
to the Swiss Borrower in Swiss Francs shall not exceed $100,000,000,
(ii) the aggregate principal Dollar Amount of revolving credit loans made
to the Japanese Borrower in Japanese Yen shall not exceed $100,000,000;
(iii) the aggregate principal Dollar Amount of revolving credit loans made
to the Company in all Foreign Currencies shall not exceed $200,000,000,
(iv) the aggregate Dollar Amount of revolving credit loans made to all of
the Borrowers in all Foreign Currencies shall not at any time exceed $200,000,000,
(v) with regard to each Lender individually, the aggregate principal
Dollar Amount (determined as of the most recent Determination Date) of such
Lender’s Revolving Commitment Percentage of outstanding Revolving Loans
(including, without limitation, Fronted Foreign Currency Loans) plus
such Lender’s Revolving Commitment Percentage of outstanding Swingline Loans plus
such Lender’s

 

20

 

LOC Commitment Percentage
of LOC Obligations shall not exceed such Lender’s Revolving Committed Amount,
and (vi) with regard to the Lenders collectively, the aggregate principal
Dollar Amount (determined as of the most recent Determination Date) of the
outstanding Revolving Loans plus outstanding Swingline Loans plus
LOC Obligations shall not exceed the Aggregate Revolving Committed Amount.  Revolving Loans may consist of Base Rate
Loans or LIBOR Rate Loans, or a combination thereof, as the applicable Borrower
may request, and may be repaid and reborrowed in accordance with the provisions
hereof; provided, however, (A) Revolving Loans denominated
in Foreign Currencies shall consist solely of LIBOR Rate Loans and
(B) Revolving Loans made on the Closing Date or on any of the three
Business Days following the Closing Date may only consist of Alternate Base
Rate Loans unless the applicable Borrower executes a funding indemnity letter
in form and substance satisfactory to the Administrative Agent.  LIBOR Rate Loans shall be made by each
Lender at its LIBOR Lending Office and Alternate Base Rate Loans at its
Domestic Lending Office.

 

(b)           Revolving Loan Borrowings.

 

(i)            Notice of Borrowing.  Any Borrower may request a Revolving Loan
borrowing by written notice (or telephone notice promptly confirmed in writing
which confirmation may be by fax) to the Administrative Agent not later than
12:00 Noon (Charlotte, North Carolina time) on the Business Day prior
to the date of requested borrowing in the case of Alternate Base Rate Loans
denominated in Dollars, on the third Business Day prior to the date of the
requested borrowing in the case of LIBOR Rate Loans denominated in Dollars, and
on the fourth Business Day prior to the date of the requested borrowing in the
case of all LIBOR Rate Loans denominated in Foreign Currencies.  Each such request for borrowing shall be
irrevocable and shall specify (A) the applicable Borrower, (B) that a
Revolving Loan is requested, (C) the date of the requested borrowing
(which shall be a Business Day), (D) the currency and the aggregate
principal amount to be borrowed, (E) whether the borrowing shall be
comprised of Alternate Base Rate Loans, LIBOR Rate Loans or a combination
thereof, and if LIBOR Rate Loans are requested, the Interest Period(s) and
currency therefor.  A form of Notice of
Borrowing (a “Notice of Borrowing”) is attached as Schedule 2.1(b)(i).  If the applicable Borrower shall fail to
specify in any such Notice of Borrowing (I) an applicable Interest Period
in the case of a LIBOR Rate Loan, then such notice shall be deemed to be a
request for an Interest Period of one month, (II) the type of Revolving
Loan requested, then such notice shall be deemed to be a request for an
Alternate Base Rate Loan hereunder (unless such notice indicates that the
requested borrowing is to be made in a Foreign Currency, in which case, such
notice shall be deemed to be a request for a LIBOR Rate Loan hereunder), or
(III) the currency of the Revolving Loan requested, (x) if such
request is made by the Company, then such notice shall be deemed to be a
request for a Revolving Loan denominated in Dollars, (y) if such request
is made by the Swiss Borrower, then such notice shall be deemed to be a request
for a Revolving Loan denominated in Swiss Francs and (z) if such request
is made by the Japanese Borrower, then such notice shall be deemed to be a
request for a Revolving Loan denominated in Japanese Yen.  The Administrative Agent shall give notice
to each Lender promptly upon receipt of each Notice of Borrowing, the contents
thereof and each such Lender’s share thereof.

 

21

 

(ii)           Minimum Amounts.  Each Revolving Loan which is an Alternate
Base Rate Loan shall be in a minimum aggregate Dollar Amount of $1,000,000 and
in integral multiples of $500,000 in excess thereof (or the remaining amount of
the Aggregate Revolving Committed Amount, if less).  Each Revolving Loan which is a LIBOR Rate Loan shall be in a
minimum aggregate Dollar Amount of $1,000,000 and in integral multiples of
$500,000 in excess thereof.

 

(iii)          Advances.  Each Lender (or in the case of any Foreign
Currency Participant, the Foreign Currency Fronting Bank, on such Foreign
Currency Participant’s behalf as set forth below) will make its Revolving
Commitment Percentage of each Revolving Loan borrowing available to the Administrative
Agent, for the account of the applicable Borrower, in Dollars or the applicable
Foreign Currency and in funds immediately available to the Administrative
Agent, at the Administrative Agent’s Office 
by (A) 12:00 Noon on the date specified in the applicable Notice of
Borrowing in the case of any Revolving Loan denominated in Dollars and (B) the
Applicable Time specified by the Administrative Agent in the case of any
Revolving Loan denominated in a Foreign Currency.  With respect to any Foreign Currency Participant, the Foreign
Currency Fronting Bank will make such Foreign Currency Participant’s Revolving
Commitment Percentage of each applicable Foreign Currency Loan on behalf of
such Foreign Currency Participant for the account of the applicable Borrower,
in the applicable Foreign Currency (each such Foreign Currency  Loan a “Fronted Foreign Currency Loan”).  Such borrowing will then be made available
to the applicable Borrower by the Administrative Agent by crediting the account
of the applicable Borrower on the books of the Administrative Agent’s Office
with the aggregate of the amounts made available to the Administrative Agent by
the Lenders and in like funds as received by the Administrative Agent.

 

(c)           Repayment.  The principal amount of all Revolving Loans
shall be due and payable in full on the Maturity Date, unless accelerated
sooner pursuant to Section 7.2.

 

(d)           Interest.  Subject to the provisions of
Section 2.8, Revolving Loans shall bear interest as follows:

 

(i)            Alternate Base Rate Loans.  During such periods as Revolving Loans shall
be comprised of Alternate Base Rate Loans, each such Alternate Base Rate Loan
shall bear interest at a per annum rate equal to the sum of the Alternate Base
Rate plus the Applicable Percentage; and

 

(ii)           LIBOR Rate Loans.  During such periods as Revolving Loans shall
be comprised of LIBOR Rate Loans, each such LIBOR Rate Loan shall bear interest
at a per annum rate equal to the sum of the LIBOR Rate plus the
Applicable Percentage.

 

Interest on Revolving
Loans shall be payable in arrears on each Interest Payment Date.

 

22

 

(e)           Revolving Notes.  Each Lender’s Revolving Committed Amount
shall be evidenced by a duly executed promissory note of each of the Borrowers
to such Lender in substantially the form of Schedule 2.1(e).

 

(f)            Participations
of Foreign Currency Loans.  At the
time that the Foreign Currency Fronting Bank makes a Fronted Foreign Currency
Loan, each Foreign Currency Participant shall be deemed, without any further
action by any Person, to have purchased from the Foreign Currency Fronting Bank
an unfunded participation, without recourse to or warranty of the Foreign
Currency Fronting Bank, in such Fronted Foreign Currency Loan in an amount
equal to such Foreign Currency Participant’s Revolving Commitment Percentage of
such Loan and shall be obligated to fund such participation at the time and in
the manner provided below.  In the event
that the applicable Borrower shall fail to timely repay any Foreign Currency
Loan, and in any event upon (i) the request of the Foreign Currency Fronting
Bank and (ii) the occurrence and during the continuance of a Default or an
Event of Default, each Foreign Currency Participant shall fund its
participation in such Loan (regardless of whether the conditions precedent
thereto set forth in Section 4.2 are then satisfied, whether or not the Company
or a Foreign Borrower has then submitted a Notice of Borrowing and whether or
not the Commitments are then in effect, any Event of Default exists or all the
Loans have been accelerated) by paying to the Foreign Currency Fronting Bank,
at the address provided in Section 9.2 or at such other address as the Foreign
Currency Fronting Bank may designate, the Dollar Amount (as determined as of
the date such participation is to be funded) its participation of such
Revolving Loan.  Upon the funding of its
Revolving Commitment Percentage of such Foreign Currency Loan, a Foreign
Currency Participant shall have a Revolving Loan denoted in Dollars equal to
the U.S. Dollar amount funded.  If such
amount is not in fact made available to the Foreign Currency Fronting Bank by
any Foreign Currency Participant, the Foreign Currency Fronting Bank shall be
entitled to recover such amount on demand from such Foreign Currency
Participant, together with accrued interest thereon for each day from the date
of demand thereof, at the Federal Funds Rate if paid within two Business Days
of the date of demand thereof, and thereafter at a rate equal to the Base Rate.  If such Foreign Currency Participant does
not pay such amount forthwith upon the Foreign Currency Fronting Bank’s demand
therefor, and until such time as such Foreign Currency Participant makes the
required payment, the Foreign Currency Fronting Bank shall be deemed to
continue to have outstanding Foreign Currency Loans in the amount of such
unpaid participation obligation for all purposes of the Credit Documents other
than those provisions requiring the Foreign Currency Participants to purchase a
participation therein.  From the date on
which the Foreign Currency Fronting Bank makes any Fronted Foreign Currency
Loan on behalf of any Foreign Currency Participant until the date on which such
Foreign Currency Participant funds its Revolving Commitment Percentage of any
such Foreign Currency Loans to the Foreign Currency Fronting Bank in the manner
set forth above, the interest payable on such Foreign Currency Loan as set
forth in Section 2.1(d) shall be allocated among the Foreign Currency Fronting
Bank and each Foreign Currency Participant such that each Foreign Currency
Participant shall receive the Applicable Percentage on such Foreign Currency
Loan and the Foreign Currency Fronting Bank shall receive the remainder of the
interest paid by the Company pursuant to Section 2.1(d).

 

23

 

Section 2.2            Letter of Credit Subfacility.

 

(a)           Issuance.  Subject to the terms and conditions hereof
and of the LOC Documents, if any, and any other terms and conditions which the Issuing
Lender may reasonably require, during the Commitment Period the Issuing Lender
shall issue, and the Lenders shall participate in, Letters of Credit for the
account of the Company and its Subsidiaries  from time to time upon request in a form
acceptable to the Issuing Lender; provided, however, that
(i) the aggregate amount of LOC Obligations shall not at any time exceed TEN MILLION
DOLLARS ($10,000,000) (the “LOC Committed Amount”),
(ii) with regard to the Lenders collectively, the aggregate principal
Dollar Amount (determined as of the most recent Determination Date) of the
outstanding Revolving Loans plus outstanding Swingline Loans plus
LOC Obligations shall not exceed the Aggregate Revolving Committed Amount,
(iii) all Letters of Credit shall be denominated in U.S. Dollars and
(iv) Letters of Credit shall be issued for lawful corporate purposes and
may be issued as standby letters of credit, including in connection with
workers’ compensation and other insurance programs, and trade letters of credit.  Except as otherwise expressly agreed upon by
all the Lenders, no Letter of Credit shall have an original expiry date more
than twelve (12) months from the date of issuance; provided, however,
so long as no Default or Event of Default has occurred and is continuing and
subject to the other terms and conditions to the issuance of Letters of Credit
hereunder, the expiry dates of Letters of Credit may be extended annually or
periodically from time to time at the request of the Company or by operation of
the terms of the applicable Letter of Credit to a date not more than twelve
(12) months from the date of extension; provided, further, that
no Letter of Credit, as originally issued or as extended, shall have an expiry
date extending beyond the date that is thirty (30) days prior to the Maturity
Date.  Each Letter of Credit shall
comply with the related LOC Documents. 
The issuance and expiry date of each Letter of Credit shall be a
Business Day.  Any Letters of Credit
issued hereunder shall be in a minimum original face amount of $100,000 or such
lesser amount as may be agreed upon between the Company and the Issuing
Lender.  Wachovia shall be the Issuing
Lender on all Letters of Credit issued after the Closing Date.

 

(b)           Notice and Reports.  The request for the issuance of a Letter of
Credit shall be submitted to the Issuing Lender at least five (5) Business
Days prior to the requested date of issuance. 
The Issuing Lender will promptly upon request provide to the Administrative
Agent for dissemination to the Lenders a detailed report specifying the Letters
of Credit which are then issued and outstanding and any activity with respect
thereto which may have occurred since the date of any prior report, and
including therein, among other things, the account party, the beneficiary, the
face amount, expiry date as well as any payments or expirations which may have
occurred.  The Issuing Lender will
further provide to the Administrative Agent promptly upon request copies of the
Letters of Credit.  The Issuing Lender
will provide to the Administrative Agent promptly upon request a summary report
of the nature and extent of LOC Obligations then outstanding.

 

(c)           Participations.  Each Lender, upon issuance of a Letter of
Credit, shall be deemed to have purchased without recourse a risk participation
from the Issuing Lender in such Letter of Credit and the obligations arising
thereunder and any collateral  relating thereto, in each case in an
amount equal to its LOC Commitment Percentage of the obligations under such
Letter of Credit and shall absolutely, unconditionally and irrevocably assume,
as primary obligor and not

 

24

 

as surety, and be
obligated to pay to the Issuing Lender therefor and discharge when due, its LOC
Commitment Percentage of the obligations arising under such Letter of
Credit.  Without limiting the scope and
nature of each Lender’s participation in any Letter of Credit, to the extent
that the Issuing Lender has not been reimbursed as required hereunder or under
any LOC Document, each such Lender shall pay to the Issuing Lender its LOC
Commitment Percentage of such unreimbursed drawing in same day funds on the day
of notification by the Issuing Lender of an unreimbursed drawing pursuant to
and in accordance with the provisions of subsection (d) hereof.  The obligation of each Lender to so
reimburse the Issuing Lender shall be absolute and unconditional and shall not
be affected by the occurrence of a Default, an Event of Default or any other
occurrence or event.  Any such
reimbursement shall not relieve or otherwise impair the obligation of the
Borrowers to reimburse the Issuing Lender under any Letter of Credit, together
with interest as hereinafter provided.

 

(d)           Reimbursement.  In the event of any drawing under any Letter
of Credit, the Issuing Lender will promptly notify the Company and the
Administrative Agent.  The Company shall
reimburse the Issuing Lender on the day of drawing under any Letter of Credit
(with the proceeds of a Revolving Loan obtained hereunder or otherwise) in same
day funds as provided herein or in the LOC Documents.  If the Company shall fail to reimburse the Issuing Lender as
provided herein, the unreimbursed amount of such drawing shall bear interest at
a per annum rate equal to the Alternate Base Rate plus the Applicable
Percentage for Revolving Loans that are Base Rate Loans plus two
percent (2%) for so long as such amount shall be unreimbursed.  Unless the Company shall immediately notify
the Issuing Lender and the Administrative Agent of its intent to otherwise
reimburse the Issuing Lender, the Company shall be deemed to have requested a
Revolving Loan (a “Mandatory Borrowing”) in the amount of the drawing as
provided in subsection (e) hereof, the proceeds of which will be used to
satisfy the reimbursement obligations. 
The Company’s reimbursement obligations hereunder shall be absolute and
unconditional under all circumstances irrespective of any rights of set-off,
counterclaim or defense to payment the Company may claim or have against the
Issuing Lender, the Administrative Agent, the Lenders, the beneficiary of the
Letter of Credit drawn upon or any other Person, including without limitation
any defense based on any failure of the Company to receive consideration or the
legality, validity, regularity or unenforceability of the Letter of
Credit.  The Issuing Lender will
promptly notify the other Lenders of the amount of any unreimbursed drawing and
each Lender shall promptly pay to the Administrative Agent for the account of
the Issuing Lender in Dollars and in immediately available funds, the amount of
such Lender’s LOC Commitment Percentage of such unreimbursed drawing.  Such payment shall be made on the day such
notice is received by such Lender from the Issuing Lender if such notice is
received at or before 2:00 p.m. (Charlotte, North Carolina time),
otherwise such payment shall be made at or before 12:00 Noon (Charlotte,
North Carolina time) on the Business Day next succeeding the day such
notice is received.  If such Lender does
not pay such amount to the Issuing Lender in full upon such request, such
Lender shall, on demand, pay to the Administrative Agent for the account of the
Issuing Lender interest on the unpaid amount during the period from the date of
such drawing until such Lender pays such amount to the Issuing Lender in full
at a rate per annum equal to, if paid within two (2) Business Days of the
date of drawing, the Federal Funds Effective Rate and thereafter at a rate
equal to the Alternate Base Rate.  Each
Lender’s obligation to make such payment to the Issuing Lender, and the right
of the Issuing Lender to receive the same, shall be absolute and unconditional,
shall not be affected by

 

25

 

any circumstance
whatsoever and without regard to the termination of this Credit Agreement or
the Commitments hereunder, the existence of a Default or Event of Default or
the acceleration of the Borrower Obligations hereunder and shall be made
without any offset, abatement, withholding or reduction whatsoever.

 

(e)           Repayment with Revolving Loans.  On any day on which the Company shall have
requested, or been deemed to have requested, a Revolving Loan to reimburse a
drawing under a Letter of Credit, the Administrative Agent shall give notice to
the Lenders that a Revolving Loan has been requested or deemed requested in
connection with a drawing under a Letter of Credit, in which case a Revolving
Loan borrowing comprised entirely of Alternate Base Rate Loans (each such
borrowing, a “Mandatory Borrowing”) shall be immediately made (without
giving effect to any termination of the Commitments pursuant to
Section 7.2) pro  rata based on each Lender’s respective
Revolving Commitment Percentage (determined before giving effect to any
termination of the Commitments pursuant to Section 7.2).  The proceeds of such Mandatory Borrowing
shall be paid directly to the Issuing Lender for application to the respective
LOC Obligations.  Each Lender hereby
irrevocably agrees to make such Revolving Loans immediately upon any such
request or deemed request on account of each Mandatory Borrowing in the amount
and in the manner specified in the preceding sentence and on the same such date
notwithstanding (i) the amount of Mandatory Borrowing may not
comply with the minimum amount for borrowings of Revolving Loans otherwise
required hereunder, (ii) whether any conditions specified in
Section 4.2 are then satisfied, (iii) whether a Default or an Event
of Default then exists, (iv) failure for any such request or deemed request
for Revolving Loan to be made by the time otherwise required in
Section 2.1(b),  (v) the date of such Mandatory Borrowing,
or (vi) any reduction in the Aggregate Revolving Committed Amount after
any such Letter of Credit may have been drawn upon; provided, however,
that in the event any such Mandatory Borrowing should be less than the minimum
amount for borrowings of Revolving Loans otherwise provided in
Section 2.1(b)(ii), the Company shall pay to the Administrative Agent for
its own account an administrative fee of $500. 
In the event that any Mandatory Borrowing cannot for any reason be made
on the date otherwise required above (including, without limitation, as a
result of the commencement of a proceeding under the Bankruptcy Code), then
each such Lender hereby agrees that it shall forthwith fund (as of the date the
Mandatory Borrowing would otherwise have occurred, but adjusted for any
payments received from the Company on or after such date and prior to such
purchase) its Participation Interests in the outstanding LOC Obligations; provided,
further, that in the event any Lender shall fail to fund its
Participation Interest on the day the Mandatory Borrowing would otherwise have
occurred, then the amount of such Lender’s unfunded Participation Interest
therein shall bear interest payable by such Lender to the Issuing Lender upon
demand, at the rate equal to, if paid within two (2) Business Days of such
date, the Federal Funds Effective Rate, and thereafter at a rate equal to the
Alternate Base Rate.

 

(f)            Modification, Extension.  The issuance of any supplement,
modification, amendment, renewal, or extension to any Letter of Credit shall,
for purposes hereof, be treated in all respects the same as the issuance of a
new Letter of Credit hereunder.

 

(g)           Uniform Customs and Practices.  The Issuing Lender shall have the Letters of
Credit be subject to The Uniform Customs and Practice for Documentary Credits,
as published

 

26

 

as of the date of issue
by the International Chamber of Commerce (the “UCP”), in which case the
UCP may be incorporated therein and deemed in all respects to be a part
thereof.

 

Section 2.3            Swingline Loan Subfacility.

 

(a)           Swingline
Commitment.  During the Commitment
Period, subject to the terms and conditions hereof, the Swingline Lender, in
its individual capacity, agrees to make certain revolving credit loans in
Dollars to the Company (each a “Swingline Loan” and, collectively, the “Swingline
Loans”) for the purposes hereinafter set forth; provided, however,
(i) the aggregate amount of Swingline Loans outstanding at any time shall
not exceed TWENTY-FIVE MILLION DOLLARS ($25,000,000) (the “Swingline
Committed Amount”), and (ii) with regard to the Lenders collectively,
the aggregate principal Dollar Amount (determined as of the most recent
Determination Date) of the outstanding Revolving Loans plus outstanding
Swingline Loans plus LOC Obligations shall not exceed the Aggregate
Revolving Committed Amount.  Swingline
Loans hereunder may be repaid and reborrowed in accordance with the provisions
hereof.

 

(b)           Swingline
Loan Borrowings.

 

(i)            Notice of Borrowing and
Disbursement.  The Swingline Lender
will make Swingline Loans available to the Company on any Business Day upon
request made by the Company not later than 12:00 Noon (Charlotte,
North Carolina time) on such Business Day.  A notice of request for Swingline Loan borrowing shall be made in
the form of Schedule 2.1(b)(i) with appropriate modifications.  Swingline Loan borrowings hereunder shall be
made in minimum amounts of $100,000 and in integral amounts of $100,000 in
excess thereof.

 

(ii)           Repayment of Swingline Loans.  Each Swingline Loan borrowing shall be due
and payable on the Maturity Date.  The
Swingline Lender may, at any time, in its sole discretion, by written notice to
the Company and the Administrative Agent, demand repayment of its Swingline
Loans by way of a Revolving Loan borrowing, in which case the Company shall be
deemed to have requested a Revolving Loan borrowing comprised entirely of
Alternate Base Rate Loans in the amount of such Swingline Loans; provided,
however, that, in the following circumstances, any such demand shall
also be deemed to have been given one Business Day prior to each of
(i) the Maturity Date, (ii) the occurrence of any Event of Default
described in Section 7.1(e), (iii) upon acceleration of the Borrower
Obligations hereunder, whether on account of an Event of Default described in
Section 7.1(e) or any other Event of Default, and (iv) the exercise
of remedies in accordance with the provisions of Section 7.2 hereof (each
such Revolving Loan borrowing made on account of any such deemed request
therefor as provided herein being hereinafter referred to as “Mandatory
Borrowing”).  Each Lender hereby
irrevocably agrees to make such Revolving Loans promptly upon any such request
or deemed request on account of each Mandatory Borrowing in the amount and in
the manner specified in the preceding sentence and on the same such date notwithstanding
(I) the amount of Mandatory Borrowing may not comply with the minimum
amount for borrowings of Revolving Loans otherwise required hereunder,
(II) whether any

 

27

 

conditions specified in Section 4.2 are then
satisfied, (III) whether a Default or an Event of Default then exists,
(IV) failure of any such request or deemed request for Revolving Loans to
be made by the time otherwise required in Section 2.1(b)(i), (V) the
date of such Mandatory Borrowing, or (VI) any reduction in the Revolving
Committed Amount or termination of the Revolving Commitments immediately prior
to such Mandatory Borrowing or contemporaneously therewith.  In the event that any Mandatory Borrowing
cannot for any reason be made on the date otherwise required above (including,
without limitation, as a result of the commencement of a proceeding under the
Bankruptcy Code), then each Lender hereby agrees that it shall forthwith
purchase (as of the date the Mandatory Borrowing would otherwise have occurred,
but adjusted for any payments received from the Company on or after such date
and prior to such purchase) from the Swingline Lender such participations in
the outstanding Swingline Loans as shall be necessary to cause each such Lender
to share in such Swingline Loans ratably based upon its respective Revolving
Commitment Percentage (determined before giving effect to any termination of
the Commitments pursuant to Section 7.2) provided that (A) all
interest payable on the Swingline Loans shall be for the account of the
Swingline Lender until the date as of which the respective participation is
purchased, and (B) at the time any purchase of participations pursuant to
this sentence is actually made, the purchasing Lender shall be required to pay
to the Swingline Lender interest on the principal amount of such participation
purchased for each day from and including the day upon which the Mandatory
Borrowing would otherwise have occurred to but excluding the date of payment
for such participation, at the rate equal to, if paid within two (2)
Business Days of the date of the Mandatory Borrowing, the Federal Funds
Effective Rate, and thereafter at a rate equal to the Alternate Base Rate.

 

(c)           Interest
on Swingline Loans.  Subject to the
provisions of Section 2.8, Swingline Loans shall bear interest at a per
annum rate equal to the Alternate Base Rate plus the Applicable
Percentage for Revolving Loans that are Alternate Base Rate Loans.  Interest on Swingline Loans shall be payable
in arrears on each Interest Payment Date.

 

(d)           Swingline Note.  The Swingline Loans shall be evidenced by a
duly executed promissory note of the Company to the Swingline Lender in the
original amount of the Swingline Committed Amount and substantially in the form
of Schedule 2.3(d).

 

Section 2.4            Fees.

 

(a)           Commitment Fee.  In consideration of the Revolving
Commitment, the Company agrees to pay to the Administrative Agent for the
ratable benefit of the Lenders a commitment fee (the “Commitment Fee”)
in an amount equal to the Applicable Percentage per annum on the average daily
unused amount of the Aggregate Revolving Committed Amount.  For purposes of computation of the
Commitment Fee, LOC Obligations shall be considered usage of the Aggregate
Revolving Committed Amount but Swingline Loans shall not be considered usage of
the Aggregate Revolving Committed Amount. 
The Commitment Fee shall be payable quarterly on the last Business Day
of each calendar quarter.

 

28

 

(b)           Letter of Credit Fees.  In consideration of the LOC Commitments, the
Company agrees to pay to the Issuing Lender a fee (the “Letter of Credit Fee”)
equal to the Applicable Percentage per annum on the average daily maximum
amount available to be drawn under each such Letter of Credit from the date of
issuance to the date of expiration.  In
addition to such Letter of Credit Fee, the Issuing Lender may charge, and
retain for its own account without sharing by the other Lenders, an additional
facing fee (the “Letter of Credit Facing Fee”) of one-eighth of one
percent (.125%) per annum on the average daily maximum amount available to
be drawn under each such Letter of Credit issued by it.  The Issuing Lender shall promptly pay over
to the Administrative Agent for the ratable benefit of the Lenders (including
the Issuing Lender) the Letter of Credit Fee. 
The Letter of Credit Fee shall be payable quarterly in arrears on the
last Business Day of each calendar quarter.

 

(c)           Issuing Lender Fees.  In addition to the Letter of Credit Fees
payable pursuant to subsection (b) hereof, the Company shall pay to the
Issuing Lender for its own account without sharing by the other Lenders the
reasonable and customary charges from time to time of the Issuing Lender with
respect to the amendment, transfer, administration, cancellation and conversion
of, and drawings under, such Letters of Credit (collectively, the “Issuing
Lender Fees”).

 

(d)           Administrative Fee.  The Company agrees to pay to the
Administrative Agent the annual administrative fee as described in the Fee
Letter.

 

Section 2.5            Commitment
Reductions.

 

(a)           Voluntary Reductions.  The Borrowers shall have the right to
terminate or permanently reduce the unused portion of the Aggregate Revolving
Committed Amount at any time or from time to time upon not less than five
Business Days’ prior notice to the Administrative Agent (which shall notify the
Lenders thereof as soon as practicable) of each such termination or reduction,
which notice shall specify the effective date thereof and the amount of any
such reduction which shall be in a minimum Dollar Amount of $5,000,000 or a
whole multiple of $1,000,000 in excess thereof and shall be irrevocable and
effective upon receipt by the Administrative Agent, provided that no
such reduction or termination shall be permitted if after giving effect
thereto, and to any prepayments of the Loans made on the effective date
thereof, the sum of the outstanding Revolving Loans plus outstanding
Swingline Loans plus LOC Obligations would exceed the Aggregate
Revolving Committed Amount.

 

(b)           Maturity Date.  The Revolving Commitment, the Swingline
Commitment and the LOC Commitment shall automatically terminate on the Maturity
Date.

 

Section 2.6            Prepayments.

 

(a)           Optional Prepayments.  The Borrowers shall have the right to prepay
Loans in whole or in part from time to time; provided, however,
that each partial prepayment of a Revolving Loan shall be in a minimum
aggregate principal Dollar Amount of $1,000,000  and integral multiples of
$250,000  in
excess thereof, and each partial prepayment of a Swingline Loan shall be in a
minimum principal amount of $100,000 and integral multiples of $100,000 in

 

29

 

excess thereof.  The applicable Borrower shall give three
Business Days’ irrevocable notice in the case of LIBOR Rate Loans and same-day
irrevocable notice on any Business Day in the case of Alternate Base Rate
Loans, to the Administrative Agent (which shall notify the Lenders thereof as
soon as practicable).  Prepayments shall
be applied first to Alternate Base Rate Loans and then to LIBOR Rate Loans in
direct order of Interest Period maturities. 
All prepayments under this Section 2.6(a) shall be subject to
Section 2.18, but otherwise without premium or penalty.  Interest on the principal amount prepaid
shall be payable on the next occurring Interest Payment Date that would have
occurred had such loan not been prepaid or, at the request of the
Administrative Agent, interest on the principal amount prepaid shall be payable
on any date that a prepayment is made hereunder through the date of
prepayment.  Amounts prepaid on the
Revolving Loans and the Swingline Loans may be reborrowed in accordance with
the terms hereof.

 

(b)           Mandatory Prepayments.  If at any time after the Closing Date, the
aggregate principal Dollar Amount (determined as of the most recent
Determination Date) of the outstanding Revolving Loans plus outstanding
Swingline Loans plus LOC Obligations shall exceed the Aggregate
Revolving Committed Amount, the Borrowers immediately shall prepay the Loans
and cash collateralize the LOC Obligations in an amount sufficient to eliminate
such excess.

 

Such prepayment shall be
applied, to the Revolving Loans and then (after all Revolving Loans have been
repaid) to a cash collateral account in respect of LOC Obligations.  Within the parameters of the applications
set forth above, prepayments shall be applied first to Alternate Base Rate
Loans and then to LIBOR Rate Loans in direct order of Interest Period maturities.  All prepayments under this Section 2.6(b)
shall be subject to Section 2.18 and be accompanied by interest on the
principal amount prepaid through the date of prepayment.

 

(c)           Hedging Obligations Unaffected.  Any repayment or prepayment made pursuant to
this Section 2.6 shall not affect the Borrowers’ obligation to continue to
make payments under any Hedging Agreement, which shall remain in full force and
effect notwithstanding such repayment or prepayment, subject to the terms of
such Hedging Agreement.

 

Section 2.7            Minimum Principal Amount of
Tranches.

 

All borrowings, payments
and prepayments in respect of Revolving Loans shall be in such amounts and be
made pursuant to such elections so that after giving effect thereto the
aggregate principal Dollar Amount (determined as of the most recent
Determination Date) of the Revolving Loans comprising any Tranche shall be
(a) with respect to Alternate Base Rate Loans, $1,000,000 or a whole
multiple of $500,000 in excess thereof, and (ii) with respect to LIBOR
Rate Loans, $1,000,000 or a whole multiple of $500,000 in excess thereof.

 

Section 2.8            Default
Rate.

 

Upon the occurrence, and
during the continuance, of an Event of Default, at the discretion of the
Required Lenders, the principal of and, to the extent permitted by law,
interest on the Loans and any other amounts owing hereunder or under the other
Credit Documents shall bear interest,

 

30

 

payable on demand, at a
per annum rate 2% greater than the rate which would otherwise be applicable (or
if no rate is applicable, whether in respect of interest, fees or other
amounts, then the Alternate Base Rate plus the Applicable Percentage plus
2%).

 

Section 2.9            Conversion
Options.

 

(a)           The Borrowers may, in the case of
Revolving Loans, elect from time to time to convert Alternate Base Rate Loans
to LIBOR Rate Loans, by giving the Administrative Agent at least three Business
Days’ prior irrevocable written notice of such election.  A form of Notice of Conversion/Extension is
attached as Schedule 2.9.  If
the date upon which an Alternate Base Rate Loan is to be converted to a LIBOR
Rate Loan is not a Business Day, then such conversion shall be made on the next
succeeding Business Day and during the period from such last day of an Interest
Period to such succeeding Business Day such Loan shall bear interest as if it
were an Alternate Base Rate Loan.  All
or any part of outstanding Alternate Base Rate Loans may be converted as
provided herein, provided that (i) no Loan may be converted into a
LIBOR Rate Loan when any Default or Event of Default has occurred and is
continuing and (ii) partial conversions shall be in an aggregate principal
Dollar Amount of $1,000,000 or a whole multiple of $500,000  in excess thereof.

 

(b)           Any LIBOR Rate Loans may be continued
as such upon the expiration of an Interest Period with respect thereto by
compliance by the applicable Borrower with the notice provisions contained in
Section 2.9(a); provided, that no LIBOR Rate Loan may be continued
as such when any Default or Event of Default has occurred and is continuing, in
which case such Loan shall be automatically converted to an Alternate Base Rate
Loan at the end of the applicable Interest Period with respect thereto.  If the applicable Borrower shall fail to
give timely notice of an election to continue a LIBOR Rate Loan, or the
continuation of LIBOR Rate Loans is not permitted hereunder, such LIBOR Rate
Loans shall be automatically converted to Alternate Base Rate Loans at the end
of the applicable Interest Period with respect thereto.

 

Section 2.10         Computation of Interest and Fees.

 

(a)           Interest payable hereunder with
respect to Alternate Base Rate Loans shall be calculated on the basis of a year
of 365 days (or 366 days, as applicable) for the actual days
elapsed.  All other fees, interest and
all other amounts payable hereunder shall be calculated on the basis of a
360 day year for the actual days elapsed. 
The Administrative Agent shall as soon as practicable notify the
Borrowers and the Lenders of each determination of a LIBOR Rate on the Business
Day of the determination thereof.  Any
change in the interest rate on a Loan resulting from a change in the Alternate
Base Rate shall become effective as of the opening of business on the day on
which such change in the Alternate Base Rate shall become effective.  The Administrative Agent shall as soon as
practicable notify the Borrowers and the Lenders of the effective date and the
amount of each such change.

 

(b)           Each determination of an interest
rate by the Administrative Agent pursuant to any provision of this Credit
Agreement shall be conclusive and binding on the Borrowers and the Lenders in
the absence of manifest error.  The
Administrative Agent shall, at the request of the

 

31

 

Company or any Lender,
deliver to the Company or such Lender a statement showing the computations used
by the Administrative Agent in determining any interest rate.

 

Section 2.11         Computations,
Pro Rata Treatment and Payments.

 

(a)           Each payment on account of an amount
due from a Borrower hereunder or under any other Credit Document (other than
the 364-Day Credit Agreement) shall be made by such Borrower to the
Administrative Agent for the pro rata account of the Lenders
entitled to receive such payment as provided herein in the currency in which
such amount is denominated and in such funds as are customary at the place and
time of payment for the settlement of international payments in such
currency.  Without limiting the terms of
the preceding sentence, accrued interest on any Loans denominated in a Foreign
Currency shall be payable in the same Foreign Currency as such Loan.  Upon request, the Administrative Agent will
give the Borrowers a statement showing the computation used in calculating such
amount, which statement shall be conclusive in the absence of manifest
error.  The obligation of the Borrowers
to make each payment on account of such amount in the currency in which such
amount is denominated shall not be discharged or satisfied by any tender, or any
recovery pursuant to any judgment, which is expressed in or converted into any
other currency, except to the extent such tender or recovery shall result in
the actual receipt by the Administrative Agent of the full amount in the
appropriate currency payable hereunder. 
The Borrowers agree that their obligation to make each payment on
account of such amount in the currency in which such amount is denominated
shall be enforceable as an additional or alternative claim for recovery in such
currency of the amount (if any) by which such actual receipt shall fall short
of the full amount of such currency payable hereunder, and shall not be
affected by judgment being obtained for such amount.

 

(b)           Each borrowing of Revolving Loans and
any reduction of the Revolving Commitments shall be made pro rata
according to the respective Revolving Commitment Percentages of the
Lenders.  Each payment under this Credit
Agreement or any Note shall be applied, first, to any fees then due and owing
by the Borrowers pursuant to Section 2.4, second, to interest then due and
owing in respect of the Notes of the Borrowers and, third, to principal then
due and owing hereunder and under the Notes of the Borrowers.  Each payment on account of any fees pursuant
to Section 2.4 shall be made pro rata in accordance
with the respective amounts due and owing (except as to the Letter of Credit
Facing Fee and the Issuing Lender Fees). 
Each optional prepayment of the Loans shall be applied in accordance
with Section 2.6(a) and each mandatory prepayment of the Loans shall be
applied in accordance with Section 2.6(b). 
Payments made pursuant to Section 2.14 shall be applied in
accordance with such section.  All payments
(including prepayments) to be made by a Borrower on account of principal,
interest and fees shall be made without defense, set-off or counterclaim
(except as provided in Section 2.19(b)), shall be made to the
Administrative Agent for the account of the Lenders in immediately available
funds at the Administrative Agent’s Office and (i) in the case of Loans or
other amounts denominated in Dollars, shall be made in Dollars not later than
12:00 Noon on the date when due and (ii) in the case of Loans or
other amounts denominated in a Foreign Currency, shall be made in such Foreign
Currency not later than the Applicable Time specified by the Administrative
Agent on the date when due.  Any payment
received after the foregoing deadlines shall be deemed received on the next
Business Day.  The Administrative Agent
shall distribute such payments to the Lenders entitled thereto promptly upon
receipt in like funds as received.  If
any payment hereunder (other than payments on the LIBOR Rate Loans) becomes due
and

 

32

 

payable on a day other
than a Business Day, such payment shall be extended to the next succeeding
Business Day, and, with respect to payments of principal, interest thereon
shall be payable at the then applicable rate during such extension.  If any payment on a LIBOR Rate Loan becomes
due and payable on a day other than a Business Day, the maturity thereof shall
be extended to the next succeeding Business Day unless the result of such
extension would be to extend such payment into another calendar month, in which
event such payment shall be made on the immediately preceding Business Day.

 

(c)           Allocation of Payments After
Exercise of Remedies. 
Notwithstanding any other provisions of this Credit Agreement to the
contrary, after the exercise of remedies by the Administrative Agent or the
Lenders pursuant to Section 7.2 (or after the Commitments shall
automatically terminate and the Loans (with accrued interest thereon) and all
other amounts under the Credit Documents (including without limitation the
maximum amount of all contingent liabilities under Letters of Credit) shall
automatically become due and payable in accordance with the terms of such
Section), all amounts collected or received by the Administrative Agent or any
Lender on account of the Borrower Obligations or any other amounts outstanding
under any of the Credit Documents shall be paid over or delivered as follows:

 

FIRST, to the
payment of all reasonable out-of-pocket costs and expenses (including without
limitation reasonable attorneys’ fees) of the Administrative Agent in connection
with enforcing the rights of the Lenders under the Credit Documents;

 

SECOND, to the
payment of any fees owed to the Administrative Agent;

 

THIRD, to the
payment of all reasonable out-of-pocket costs and expenses (including without
limitation, reasonable attorneys’ fees) of each of the Lenders in connection
with enforcing its rights under the Credit Documents or otherwise with respect
to the Borrower Obligations owing to such Lender;

 

FOURTH, to the
payment of all of the Borrower Obligations consisting of accrued fees and
interest, and including with respect to any
Hedging Agreement between any Borrower and any Hedging Agreement Provider, any
fees, premiums and scheduled periodic payments due under such Hedging Agreement
and any interest accrued thereon;

 

FIFTH, to the payment of the outstanding principal
amount of the Borrower Obligations and the payment or cash collateralization of
the outstanding LOC Obligations, and including with respect to any Hedging
Agreement between any Borrower and any Hedging Agreement Provider, to the
extent such Hedging Agreement is permitted hereunder, any breakage, termination
or other payments due under such Hedging Agreement and any interest accrued
thereon;

 

SIXTH, to all
other Borrower Obligations and other obligations which shall have become due
and payable under the Credit Documents or otherwise and not repaid pursuant to
clauses ”FIRST” through “FIFTH” above; and

 

33

 

SEVENTH, to the
payment of the surplus, if any, to whoever may be lawfully entitled to receive
such surplus.

 

In carrying out the
foregoing, (i) amounts received shall be applied in the numerical order
provided until exhausted prior to application to the next succeeding category;
(ii) each of the Lenders shall receive an amount equal to its pro rata
share (based on the proportion that the then outstanding Loans and LOC
Obligations held by such Lender bears to the aggregate then outstanding Loans
and LOC Obligations) of amounts available to be applied pursuant to
clauses ”THIRD”, “FOURTH”, “FIFTH” and “SIXTH” above; and (iii) to
the extent that any amounts available for distribution pursuant to
clause ”FIFTH” above are attributable to the issued but undrawn amount of
outstanding Letters of Credit, such amounts shall be held by the Administrative
Agent in a cash collateral account and applied (A) first, to reimburse the
Issuing Lender from time to time for any drawings under such Letters of Credit
and (B) then, following the expiration of all Letters of Credit, to all
other obligations of the types described in clauses ”FIFTH” and “SIXTH”
above in the manner provided in this Section 2.11(c).

 

Section 2.12         Non-Receipt of Funds by the
Administrative Agent.

 

(a)           Unless the Administrative Agent shall
have been notified in writing by a Lender prior to the date a Loan is to be
made by such Lender (which notice shall be effective upon receipt) that such
Lender does not intend to make the proceeds of such Loan available to the
Administrative Agent, the Administrative Agent may assume that such Lender has
made such proceeds available to the Administrative Agent on such date, and the
Administrative Agent may in reliance upon such assumption (but shall not be
required to) make available to the applicable Borrower a corresponding
amount.  If such corresponding amount is
not in fact made available to the Administrative Agent, the Administrative
Agent shall be able to recover such corresponding amount from such Lender.  If such Lender does not pay such
corresponding amount forthwith upon the Administrative Agent’s demand therefor,
the Administrative Agent will promptly notify the applicable Borrower, and the
applicable Borrower shall immediately pay such corresponding amount to the
Administrative Agent.  The
Administrative Agent shall also be entitled to recover from the Lender or the
applicable Borrower, as the case may be, interest on such corresponding amount
in respect of each day from the date such corresponding amount was made
available by the Administrative Agent to the applicable Borrower to the date
such corresponding amount is recovered by the Administrative Agent at a per
annum rate equal to (i) from the applicable Borrower at the applicable
rate for the applicable borrowing pursuant to the Notice of Borrowing and (ii) from
a Lender at the Federal Funds Effective Rate.

 

(b)           Unless the Administrative Agent shall
have been notified in writing by the applicable Borrower, prior to the date on
which any payment is due from any Borrower hereunder (which notice shall be
effective upon receipt) that such Borrower does not intend to make such
payment, the Administrative Agent may assume that such Borrower has made such
payment when due, and the Administrative Agent may in reliance upon such
assumption (but shall not be required to) make available to each Lender on such
payment date an amount equal to the portion of such assumed payment to which
such Lender is entitled hereunder, and if such Borrower has not in fact made
such payment to the Administrative Agent, such Lender shall, on

 

34

 

demand, repay to the
Administrative Agent the amount made available to such Lender.  If such amount is repaid to the
Administrative Agent on a date after the date such amount was made available to
such Lender, such Lender shall pay to the Administrative Agent on demand
interest on such amount in respect of each day from the date such amount was
made available by the Administrative Agent to such Lender to the date such
amount is recovered by the Administrative Agent at a per annum rate equal to
the Federal Funds Effective Rate.

 

(c)           A certificate of the Administrative
Agent submitted to any Borrower or any Lender with respect to any amount owing
under this Section 2.12 shall be conclusive in the absence of manifest
error.

 

Section 2.13         Inability to Determine Interest Rate.

 

Notwithstanding any other
provision of this Credit Agreement, if (i) the Administrative Agent shall
reasonably determine (which determination shall be conclusive and binding
absent manifest error) that, by reason of circumstances affecting the relevant
market, reasonable and adequate means do not exist for ascertaining LIBOR for
such Interest Period, or (ii) the Required Lenders shall reasonably
determine (which determination shall be conclusive and binding absent manifest
error) that the LIBOR Rate does not adequately and fairly reflect the cost to
such Lenders of funding LIBOR Rate Loans that a Borrower has requested be
outstanding as a LIBOR Tranche during such Interest Period, the Administrative
Agent shall forthwith give telephone notice of such determination, confirmed in
writing, to such Borrower, and the Lenders at least two Business Days prior to
the first day of such Interest Period. 
If such notice is given (a) any Foreign Currency Loans requested to
be made on the first day of such Interest Period shall be made, at the sole
option of the applicable Borrower, in Dollars as Alternate Base Rate Loans or
such request shall be cancelled, (b) any affected LIBOR Rate Loans
requested to be made on the first day of such Interest Period shall be made, at
the sole option of the applicable Borrower, in Dollars as Alternate Base Rate
Loans and (c) any affected Loans that were to have been converted on the
first day of such Interest Period to or continued as LIBOR Rate Loans shall be
converted to or continued, at the sole option of the applicable Borrower, in
Dollars as Alternate Base Rate Loans. 
Until any such notice has been withdrawn by the Administrative Agent, no
further Loans shall be made as, continued as, or converted into, LIBOR Rate
Loans for the Interest Periods so affected.

 

Section 2.14         Illegality.

 

(a)           Notwithstanding
any other provision herein, if (i) the adoption of, or any change in, any
Requirement of Law or in the interpretation or application thereof by the
relevant Governmental Authority shall make it unlawful for any Lender or its
LIBOR Lending Office to make or maintain LIBOR Rate Loans denominated in
Dollars or in any Foreign Currency as contemplated by this Credit Agreement, or
(ii) there shall have occurred any change in national or international
financial, political or economic conditions (including the imposition of or any
change in exchange controls) or currency exchange rates which would make it
unlawful or impossible for any Lender to make Loans denominated in any Foreign
Currency to the applicable Borrower, as contemplated by this Credit Agreement
(any such affected LIBOR Rate Loans or Foreign Currency Loans, the “Affected
Loans”), then such Lender, together with Lenders giving

 

35

 

notice under
Section 3.8 and 3.10, shall be an “Affected Lender” and by
written notice to the Borrowers and to the Administrative Agent:

 

(i)            may declare that Affected Loans will
not thereafter (for the duration of such unlawfulness or impossibility) be made
by such Lender hereunder, whereupon any request for an Affected Loan shall, as
to such Lender only (A) if such Affected Loan is not a Foreign Currency Loan,
be deemed a request for a Alternate Base Rate Loan (unless it should also be
illegal for the Affected Lender to provide a Base Rate Loan, in which case such
Loan shall bear interest at a commensurate rate to be agreed upon by the
Administrative Agent and the Affected Lender, and so long as no Event of
Default shall have occurred and be continuing, the Borrowers), unless such
declaration shall be subsequently withdrawn and (B) if such Affected Loan is a
Foreign Currency Loan, be deemed to have been withdrawn, unless such
declaration shall be subsequently withdrawn; and

 

(ii)           may require that all outstanding
Affected Loans, as the case may be, made by it be (A) if such Affected
Loans are not Foreign Currency Loans, converted to Alternate Base Rate Loans,
in which event all such Affected Loans shall be automatically converted to
Alternate Base Rate Loans as of the effective date of such notice as provided
in paragraph (b) below or (B) if such Affected Loans are Foreign
Currency Loans, repaid immediately, in which event all such Affected Loans shall
be required to be repaid in full by the Borrowers as of the effective date of
such notice as provided in paragraph (b) below.

 

In the event any Lender shall exercise its rights under (i)
or (ii) above with respect to any Affected Loans which are not Foreign
Currency Loans, all payments and prepayments of principal which would otherwise
have been applied to repay the Affected Loans that would have been made by such
Lender or the converted Affected Loans of such Lender shall instead be applied
to repay the Alternate Base Rate Loans made by such Lender in lieu of, or
resulting from the conversion, of such Affected Loans.

 

(b)           For purposes of this
Section 2.14, a notice to the Borrowers by any Lender shall be effective
as to each such Affected Loan, if lawful, on the last day of the Interest
Period currently applicable to such Affected Loan; in all other cases such
notice shall be effective on the date of receipt by the Borrowers.

 

Section 2.15                            Deposits Unavailable;
Impractibility.

 

If any of the Borrowers has notified the
Administrative Agent of its intention to borrow a LIBOR Loan for an Interest
Period and the Administrative Agent determines (which determination shall be
conclusive and binding on the applicable Borrower) that:

 

(a)           deposits of the necessary amount for
such Interest Period are not available to the Lenders in the London interbank
market or, by reason of circumstances affecting such market, adequate and
reasonable means do not exist for ascertaining LIBOR for such Interest Period;
or

 

36

 

(b)           the making or funding of LIBOR Loans
has become impracticable as a result of any event occurring after the date of
this Credit Agreement which, in the opinion of the Lenders, materially and
adversely affects such Loans or the London interbank market;

 

then any notice of a LIBOR Loan previously given by the Borrowers and
not yet borrowed shall be deemed to be a notice to make a Base Rate Loan.

 

Section 2.16         Increased
Cost.

 

Each Borrower agrees to
reimburse any Lender for any increase in the cost to such Lender of, or any
reduction in the amount of any sum receivable by such Lender from any Borrower
in respect of, making or maintaining any LIBOR Rate Loans relating to the
adoption of any law, rule or regulation or any change therein or any change in
the interpretation or administration thereof by any Governmental Authority,
central bank or comparable agency charged with the interpretation or
administration thereof.  The additional
amount required to compensate such Lender for such increased cost or reduced
amount shall be payable by the applicable Borrower to such Lender within five
days of the Borrower’s receipt of written notice from such Lender specifying
such increased cost or reduced amount and the amount required to compensate
such Lender therefor, which notice shall, in the absence of manifest error, be
conclusive and binding on the Borrowers. 
In determining such additional amount, the applicable Lender may use reasonable
averaging, attribution and allocation methods. 
The agreements in this Section 2.16 shall survive the termination
of this Credit Agreement and payment of the Borrower Obligations.

 

Section 2.17         Increased Capital Costs.

 

If any change in, or the
introduction, adoption, effectiveness, interpretation, reinterpretation or
phase-in of, any law or regulation, directive, guideline, decision or request
(whether or not having the force of law) of any court, central bank, regulator
or other Governmental Authority affects or would affect the amount of capital
required or expected to be maintained by any Lender or any entity controlling
such Lender, and such Lender determines (in its sole and absolute discretion)
that the rate of return on its or such controlling entity’s capital as a
consequence of the Loans made by such Lender or the commitment hereunder is
reduced to a level below that which the Lender or such controlling entity could
have achieved but for the occurrence of any such circumstance, then, in any
such case, upon notice from time to time by any Lender to the Borrowers, the
Borrowers shall immediately pay directly to such Lender additional amounts
sufficient to compensate such Lender or such controlling entity for such
reduction in rate of return.  A
statement of such Lender as to any such additional amount or amounts (including
calculations thereof in reasonable detail) shall, in the absence of manifest
error, be conclusive and binding on the Borrowers.  In determining such amount, the applicable Lender may use
reasonable averaging, attribution and allocation methods.  The agreements in this Section 2.17
shall survive the termination of this Credit Agreement and payment of the
Borrower Obligations.

 

37

 

Section 2.18         Funding
Losses.

 

The Borrowers jointly and severally will indemnify any
Lender upon demand against any loss or expense which such Lender may sustain or
incur (including, without limitation, any loss or expense sustained or incurred
in obtaining, liquidating or employing deposits or other funds acquired to
effect, fund or maintain any Loan) as a consequence of (i) any failure of any
Borrower to make any payment when due of any amount due hereunder, (ii) any
failure of any Borrower to borrow a Loan on a date specified therefor in a notice
thereof, or (iii) any payment (including any payment upon such Lender’s
acceleration of the Loans) or prepayment of any LIBOR Loan on a date other than
the last day of the Interest Period for such Loan.

 

Section 2.19         Taxes.

 

(a)           All payments made by the Borrowers
hereunder or under any Note shall be, except as provided in Section 2.19(b),
made free and clear of, and without deduction or withholding for, any and all
present or future taxes, levies, imposts, duties, fees, assessments or other
charges of whatever nature now or hereafter imposed by any Governmental
Authority or by any political subdivision or taxing authority thereof or
therein with respect to such payments (but excluding any tax imposed on or
measured by the net income or profits or any franchise or other tax in lieu
thereof (including branch profits or similar taxes) of a Lender) and all
interest, penalties or similar liabilities with respect thereto (all such
non-excluded taxes, levies, imposts, duties, fees, assessments or other charges
being referred to collectively as “Taxes”).  If any Taxes are so levied or imposed, the Borrowers agree to pay
the full amount of such Taxes, and such additional amounts as may be necessary
so that every payment of all amounts due under this Credit Agreement or under
any Note, after withholding or deduction for or on account of any Taxes, will
not be less than the amount provided for herein or in such Note.  The Borrowers will furnish to the
Administrative Agent as soon as practicable after the date the payment of any
Taxes is due pursuant to applicable law certified copies (to the extent
reasonably available and required by law) of tax receipts evidencing such
payment by the applicable Borrower.  The
Borrowers jointly and severally agree to indemnify and hold harmless each
Lender, and reimburse such Lender upon its written request, for the amount of
any Taxes so levied or imposed and paid by such Lender.

 

(b)           Each Lender that is not a
United States person (as such term is defined in Section 7701(a)(30)
of the Code) agrees to deliver to the Borrowers and the Administrative Agent on
or prior to the Closing Date, or in the case of a Lender that is an assignee or
transferee of an interest under this Credit Agreement pursuant to
Section 9.5(g) (unless the respective Lender was already a Lender
hereunder immediately prior to such assignment or transfer), on the date of
such assignment or transfer to such Lender two accurate and complete original
signed copies of Internal Revenue Service Form W-8BEN or W-8ECI (or any successor
forms prescribed by the Internal Revenue Service) certifying such Lender’s
entitlement to a complete exemption from United States withholding tax
with respect to payments to be made under this Credit Agreement and under any
Note.  Each other Lender shall provide
Borrowers with two accurate and complete original signed copies of Internal
Revenue Form W-9 or any successor form prescribed by the Internal Revenue
Service.  In addition, each Lender
agrees that it will deliver upon any Borrower’s request updated versions of the
foregoing, as applicable, whenever

 

38

 

the previous
certification has become obsolete or inaccurate in any material respect,
together with such other forms as may be required in order to confirm or
establish the entitlement of such Lender to a continued exemption from or
reduction in United States withholding tax with respect to payments under
this Credit Agreement and any Note. 
Notwithstanding anything to the contrary contained in Section 2.19(a),
but subject to the immediately succeeding sentence, (A) the Borrowers
shall be entitled, to the extent it is required to do so by law, to deduct or
withhold Taxes imposed by the United States (or any political subdivision
or taxing authority thereof or therein) from interest, fees or other amounts
payable hereunder for the account of any Lender which is not a
United States person (as such term is defined in Section 7701(a)(30)
of the Code) for U.S. Federal income tax purposes to the extent that such
Lender has not provided to the Borrowers U.S. Internal Revenue Service Forms
that establish a complete exemption from such deduction or withholding and
(B) the Borrowers shall not be obligated pursuant to Section 2.19(a)
hereof to gross-up payments to be made to a Lender in respect of Taxes imposed
by the United States if such Lender has not provided to the Borrowers the
Internal Revenue Service Forms required to be provided to the Borrowers
pursuant to this Section 2.19(b). 
Notwithstanding anything to the contrary contained in the preceding
sentence or elsewhere in this Section 2.19(d), the Borrowers, jointly and
severally, agree to pay additional amounts and to indemnify each Lender in the
manner set forth in Section 2.19(a) (without regard to the identity of the
jurisdiction requiring the deduction or withholding) in respect of any amounts
deducted or withheld by it as described in the immediately preceding sentence
as a result of any changes after the Closing Date in any applicable law, treaty,
governmental rule, regulation, guideline or order, or in the interpretation
thereof, relating to the deducting or withholding of Taxes.

 

(c)           Each Lender agrees to use reasonable
efforts (including reasonable efforts to change its Domestic Lending Office or
LIBOR Lending Office, as the case may be) to avoid or to minimize any amounts
which might otherwise be payable pursuant to this Section; provided, however,
that such efforts shall not cause the imposition on such Lender of any
additional costs or legal or regulatory burdens deemed by such Lender in its
sole discretion to be material.  For the
avoidance of doubt, each Lender lending to IMS Japan K.K. shall use
commercially reasonable efforts to lend such funds through a lending office
located in Japan or the United States, and each Lender lending to IMS A.G.
shall use its commercially reasonable efforts to lend such funds through a
lending office located in Switzerland.

 

(d)           If any Borrower pays any additional
amount pursuant to this Section 2.19 with respect to a Lender, such Lender
shall use commercially reasonable efforts to obtain a refund of tax or credit
against its tax liabilities on account of such payment.  In the event that such Lender receives such
a refund or credit, such Lender shall pay to the applicable Borrower an amount
that such Lender reasonably determines is equal to the net tax benefit obtained
by such Lender as a result of such payment by the applicable Borrower.  In the event that no refund or credit is
obtained with respect to a Borrower’s payments to such Lender pursuant to this
Section 2.19, then such Lender shall upon request provide a certification that
such Lender has not received a refund or credit for such payments.  Nothing contained in this Section 2.19 shall
require a Lender to disclose or detail the basis of its calculation of the
amount of any tax benefit or any other amount or the basis of its determination
referred to in the proviso to the first sentence of this Section 2.19 to the
Borrowers or any other party.

 

39

 

(e)           If any Lender entitled to additional
compensation under any of the foregoing provisions of this Section 2.19 shall
fail to designate a different Applicable Lending Office as provided in
subsection (c) of this Section 2.19 promptly after receiving notice from a
Borrower, then such Borrower may cause such Lender to (and, if such Borrower so
demands, such Lender shall) assign all of its rights and obligations under this
Credit Agreement or any Note to one or more other persons identified by the
Borrower and reasonably acceptable to the Administrative Agent.

 

(f)            To the extent that no Default or
Event of Default has occurred or is continuing, no Lender who becomes a party
to this Credit Agreement by accepting an assignment of an interest herein from
another Lender shall be entitled to receive any additional amounts pursuant to
this Section 2.19 in excess of the amounts that would have been payable to the
assignor Lender prior to such assignment.

 

(g)           The agreements in this Section 2.19
shall survive the termination of this Credit Agreement and the payment of the
Borrower Obligations.  Notwithstanding
the foregoing, the terms in this Section 2.19 shall only apply to a Foreign Borrower
to the extent such Borrower has received an Extension of Credit hereunder.

 

Section 2.20         Indemnification; Nature of Issuing
Lender’s Duties.

 

(a)           In addition to its other obligations
under Section 2.2, each of the Borrowers hereby agree to protect,
indemnify, pay and save the Issuing Lender harmless from and against any and
all claims, demands, liabilities, damages, losses, costs, charges and expenses
(including reasonable attorneys’ fees) that the Issuing Lender may incur or be
subject to as a consequence, direct or indirect, of (i) the issuance of
any Letter of Credit or (ii) the failure of the Issuing Lender to honor a
drawing under a Letter of Credit as a result of any act or omission, whether
rightful or wrongful, of any present or future de jure or de facto government
or Governmental Authority (all such acts or omissions, herein called “Government
Acts”).

 

(b)           As between the Borrowers and the
Issuing Lender, the Borrowers shall assume all risks of the acts, omissions or
misuse of any Letter of Credit by the beneficiary thereof.  The Issuing Lender shall not be
responsible:  (i) for the form,
validity, sufficiency, accuracy, genuineness or legal effect of any document
submitted by any party in connection with the application for and issuance of
any Letter of Credit, even if it should in fact prove to be in any or all
respects invalid, insufficient, inaccurate, fraudulent or forged; (ii) for
the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign any Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, that may prove to be
invalid or ineffective for any reason; (iii) for failure of the
beneficiary of a Letter of Credit to comply fully with conditions required in
order to draw upon a Letter of Credit; (iv) for errors, omissions,
interruptions or delays in transmission or delivery of any messages, by mail,
cable, telegraph, telex or otherwise, whether or not they be in cipher;
(v) for errors in interpretation of technical terms; (vi) for any
loss or delay in the transmission or otherwise of any document required in
order to make a drawing under a Letter of Credit or of the proceeds thereof;
and (vii) for any consequences arising from causes beyond the control of
the

 

40

 

Issuing Lender,
including, without limitation, any Government Acts.  None of the above shall affect, impair, or prevent the vesting of
the Issuing Lender’s rights or powers hereunder.

 

(c)           In furtherance and extension and not
in limitation of the specific provisions hereinabove set forth, any action
taken or omitted by the Issuing Lender, under or in connection with any Letter
of Credit or the related certificates, if taken or omitted in good faith, shall
not put such Issuing Lender under any resulting liability to the
Borrowers.  It is the intention of the
parties that this Credit Agreement shall be construed and applied to protect
and indemnify the Issuing Lender against any and all risks involved in the
issuance of the Letters of Credit, all of which risks are hereby assumed by the
Borrowers, including, without limitation, any and all risks of the acts or
omissions, whether rightful or wrongful, of any Government Authority.  The Issuing Lender shall not, in any way, be
liable for any failure by the Issuing Lender or anyone else to pay any drawing
under any Letter of Credit as a result of any Government Acts or any other
cause beyond the control of the Issuing Lender.

 

(d)           Nothing in this Section 2.20 is
intended to limit the reimbursement obligation of the Borrowers contained in
Section 2.2(d) hereof.  The
obligations of the Borrowers under this Section 2.20 shall survive the
termination of this Credit Agreement. 
No act or omissions of any current or prior beneficiary of a Letter of
Credit shall in any way affect or impair the rights of the Issuing Lender to
enforce any right, power or benefit under this Credit Agreement.

 

(e)           Notwithstanding anything to the
contrary contained in this Section 2.20, the Borrowers shall have no
obligation to indemnify the Issuing Lender in respect of any liability incurred
by the Issuing Lender arising out of the bad faith, gross negligence or willful
misconduct of the Issuing Lender (including action not taken by the Issuing
Lender), as determined by a court of competent jurisdiction.

 

ARTICLE
III

 

REPRESENTATIONS AND WARRANTIES

 

To induce the Lenders to
enter into this Credit Agreement and to make the Extensions of Credit herein
provided for, the Borrowers hereby represent and warrant to the Administrative
Agent and to each Lender that:

 

Section 3.1            Existence.

 

Each of the Borrowers is
a corporation duly formed, validly existing and in good standing under the laws
of its jurisdiction of incorporation, has all requisite power and authority,
and the legal right, to own, operate and lease its properties and to carry on
the business in which it is engaged or presently proposes to engage, and is
duly qualified or licensed under the laws of each jurisdiction where it is
required to be so qualified or licensed except where the failure to be so
qualified could not, individually or in the aggregate, reasonably be expected
to cause a Material Adverse Change, and is in compliance with all Requirements
of Law except to the extent that

 

41

 

failure to comply
therewith could not, individually or in the aggregate, reasonably be expected
to cause a Material Adverse Change.

 

Section 3.2            Power and Authorization;
Enforceable Obligations.

 

Each of the Borrowers has
all requisite power and authority to execute, deliver and perform this Credit
Agreement and the other Credit Documents to which it is a party and to borrow
the Loans hereunder.  Each of the
Borrowers has taken all necessary corporate and legal action to authorize the
borrowings hereunder on the terms and conditions of this Credit Agreement and
the other Credit Documents to which it is a party and to authorize the
execution, delivery and performance of this Credit Agreement and the other
Credit Documents to which it is a party. 
Each of the Credit Agreement and the other Credit Documents have been
executed and delivered by a duly authorized officer of each of the
Borrowers.  This Credit Agreement constitutes,
and upon execution thereof, each other Credit Document will constitute, a
legal, valid and binding obligation of each applicable Borrower enforceable
against such Borrower in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, moratorium,
reorganization or other similar laws affecting creditors’ rights generally and
except as enforceability may be limited by general principles of equity and an
implied covenant of good faith.

 

Section 3.3            No
Legal Bar to Loans.

 

The execution, delivery
and performance of this Credit Agreement and the other Credit Documents by each
of the Borrowers will not violate any provision of any existing law, treaty or
regulation or of any order, judgment, award or decree of any court, arbitrator
or Governmental Authority or of any Requirement of Law or Contractual
Obligation applicable to the Borrowers and will not result in the creation or
imposition of any Lien on any of the material properties or assets of any of
the Borrowers pursuant to the provisions of any such Requirement of Law or
Contractual Obligation except, to the extent such violation or Lien could not,
individually or in the aggregate, reasonably be expected to cause a Material
Adverse Change.

 

Section 3.4            Financial Information;
Disclosure, etc.

 

The Periodical SEC
Reports of the Company and the related statements of income, shareholders’
equity and cash flows for any applicable period, copies of which have
heretofore been furnished to the Administrative Agent and the Lenders, present
fairly in all material respects the financial condition of the Company as of
the end of such period.  All financial
statements included therein, including the related schedules and notes, if any,
have been prepared in accordance with GAAP applied consistently throughout the
periods involved, except as set forth in the notes thereto (subject, in the
case of any interim financial statements, to normal year-end adjustments).  Since December 31, 2003, there has been no
Material Adverse Change.

 

Section 3.5            Licenses, Permits, etc.

 

No material
authorizations, licenses and permits of any Governmental Authority are required
or necessary for the conduct of the business of the Company as now conducted or

 

42

 

proposed to be conducted
by it except for such authorizations, licenses and permits (i) as have been
obtained and are in full force and effect, or (ii) the failure to have obtained
which could not reasonably be expected to result, either individually or in the
aggregate, in a Material Adverse Change.

 

Section 3.6            Tax Returns and Payments.

 

Each of the Borrowers has
filed all tax returns and information statements required by law to be filed
and has paid all taxes, assessments and other governmental charges levied upon
or in respect of any of its properties, assets, income, licenses or franchises,
other than those not yet delinquent, those not substantial in aggregate amount,
those being or about to be contested and those the failure of which to pay
could not reasonably be expected to cause a Material Adverse Change.  The charges, accruals and reserves on the
books of each of the Borrowers in respect of its taxes are adequate in the
opinion of such Borrower, and none of the Borrowers knows of any unpaid
assessment for additional taxes material in amount or of any reasonable basis
therefor.  No tax liens have been filed,
and, to the knowledge of each of the Borrowers, no claims are being asserted
with respect to any such taxes, fees or other charges.

 

Section 3.7            Title
to Properties; Liens.

 

Each of the Borrowers and
the Subsidiaries have sufficient title to all of their material properties and
assets for the conduct of their respective business as presently conducted and
proposed to be conducted by them.  Each
of the Borrowers and the Subsidiaries enjoy quiet possession under all material
real property leases to which it is a party as lessee, and all of its material
leases are valid, subsisting and in full force and effect.

 

Section 3.8            Litigation, etc.

 

Except as disclosed in
the Periodical SEC Reports of the Company or in any report on Form 8-K filed by
the Company with the SEC, there is no action, proceeding or investigation
pending or, to the knowledge of any Borrower, threatened (or any basis therefor
known to any Borrower) which questions the validity of this Credit Agreement or
the other Credit Documents executed in connection herewith, or any action taken
or to be taken pursuant hereto or thereto, or which could reasonably be
expected to result, individually or in the aggregate, in a Material Adverse
Change.

 

Section 3.9            No Default.

 

No Default or Event of
Default has occurred and is continuing. 
No Borrower nor any of the Subsidiaries is in violation of any
Requirement of Law or any term of any Contractual Obligation applicable to any
Borrower or such Subsidiary, the violation of which could reasonably be
expected to cause a Material Adverse Change. 
Without limiting the scope of the foregoing, each of the Borrowers and
their Subsidiaries are in compliance in all material respects with all
Environmental Laws, the violation of which could be reasonably expected to
cause a Material Adverse Change.

 

43

 

Section 3.10         Governmental and Other Consents.

 

No Borrower is required
to obtain any order, consent, approval or authorization of or to make any
declaration or filing with, any Governmental Authority or any other Person in
connection with the execution and delivery, of and performance under, this
Credit Agreement and the other Credit Documents, unless the failure to do so
could not reasonably be expected to cause a Material Adverse Change.

 

Section
3.11         Regulation
U, etc.

 

Except for systematic
stock repurchase programs from time to time conducted by the Company, none of
the proceeds of the Loans will be used, directly or indirectly, by any Borrower
for the purpose of purchasing or carrying, or for the purpose of reducing or
retiring any Indebtedness which was originally incurred to purchase or carry,
any margin stock or for any other purpose which might constitute the
transactions contemplated hereby a “purpose credit” within the meaning of said
Regulation U, or cause this Agreement to violate Regulation T, Regulation U,
Regulation X, or any other regulation of the Board of Governors of The Federal
Reserve System or the Exchange Act.

 

Section 3.12         Investment
Company Act; Other Regulations.

 

No Borrower is an
“investment company” or a company “controlled” by an “investment company”,
within the meaning of the Investment Company Act of 1940, as amended.  No Borrower is subject to regulation under
any federal, state or other statute or regulation which limits its ability to
incur Indebtedness.

 

Section 3.13         Compliance
with ERISA.

 

Each Plan is in
substantial compliance with ERISA and the Code; no Reportable Event has
occurred with respect to a Plan; no Plan is insolvent or in reorganization; no
Plan has an unfunded current liability within the meaning of Section 412(1)(8)
of the Code; no Plan has an accumulated or waived funding deficiency, has
permitted decreases in its funding standard account or has applied for a waiver
of the minimum funding standard or an extension of any amortization period
within the meaning of Section 412 of the Code; all contributions required to be
made with respect to a Plan have been timely made, neither the Company nor any
ERISA Affiliate has incurred any material liability to or on account of a Plan
pursuant to Section 409, 502(i), 502(1), 515, 4062, 4063, 4064, 4069, 4201,
4204 or 4212 of ERISA or Section 401(a)(29), 4971, 4975 or 4980 of the Code or
reasonably expects to incur any material liability (including any indirect,
contingent or secondary liability) under any of the foregoing Sections with
respect to any Plan (other than liabilities of any ERISA Affiliate which could
not, by operation of law or otherwise, become a liability of the Company); no
proceedings have been instituted to terminate, or to appoint a trustee to
administer, any Plan; no condition exists which presents a material risk to the
Company or any ERISA Affiliate of incurring a liability to or on account of a
Plan pursuant to the foregoing provisions of ERISA and the Code; using
actuarial assumptions and computation methods consistent with Part I of
Subtitle E of Title IV of ERISA, the aggregate liabilities of the Company and
its ERISA Affiliates to all Plans which are multi-

 

44

 

employer plans (as
defined in Section 4001(a)(3) of ERISA) in the event of a complete withdrawal
therefrom, as of the close of the most recent fiscal year of each such Plan
ended prior to the Closing Date would not result in a Material Adverse Change
on the financial condition of the Company; and no lien imposed under the Code
or ERISA on the assets of the Company or any ERISA Affiliate exists or is
likely to arise on account of any Plan. 
Anything in this Section 3.13 to the contrary notwithstanding, the
representations herein are qualified by the uncertainty created by the 2003
decision of the District Court for the Southern District of Illinois in Cooper
v. IBM Personal Pension Plan that cash balance pensions plans violate
ERISA; however, there are no actions, suits or claims pending or, to the best
knowledge of the Borrowers, threatened or anticipated (other than routine
claims for benefits) against the Borrowers or the cash balance pension plan
maintained by the Company.

 

Section 3.14         Environmental
Matters.

 

To the best knowledge of
the Borrowers, except as disclosed in the Periodical SEC Reports of the Company
or in any report on Form 8-K filed by the Company with the SEC, each of the
representations and warranties set for the in paragraphs (a) through (e) of
this subsection is true and correct with respect to each parcel of real
property owned or operated (within the meaning of any Environmental Law) by the
Borrowers or any of the Company’s Subsidiaries (the “Properties”),
except to the extent that the facts and circumstances giving rise to any such
failure to be so true and correct could not, individually or in the aggregate,
reasonably be expected to cause a Material Adverse Change:

 

(a)           The Properties do not contain, and
have not previously contained, in, on, or under, including, without limitation,
the soil and groundwater thereunder, any Hazardous Materials in violation of
any Environmental Laws.

 

(b)           The Properties and all operations and
facilities at the Properties are in compliance with all Environmental Laws, and
there is no Hazardous Materials contamination or violation of any Environmental
Law which could interfere with the continued operation of any of the Properties
or impair the fair salable value of any thereof.

 

(c)           Neither the Company nor any
Subsidiary has received any complaint, notice of violation, alleged violation,
investigation or advisory action or of potential liability or of potential
responsibility regarding environmental protection matters or permit compliance
with regard to the Properties, nor is the Company aware that any Governmental
Authority is contemplating delivering to the Company any such notice.

 

(d)           Hazardous Materials have not been generated,
treated, stored, disposed of, at, on or under any of the Properties, nor have
any Hazardous Materials been transferred from the Properties to any other
location in violation of any Environmental Laws.

 

(e)           There are no governmental,
administrative actions or judicial proceedings pending or contemplated under
any Environmental Laws to which the Company is or will be named as a party with
respect to the Properties, nor are there any consent decrees or

 

45

 

other decrees, consent
orders, administrative orders or other orders, or other administrative or
judicial requirements outstanding under any Environmental Law with respect to
any of the Properties.

 

ARTICLE IV

 

CONDITIONS PRECEDENT

 

Section 4.1            Conditions to Closing Date and
Initial Revolving Loans.

 

The obligation of each
Lender to make the initial Revolving Loans on the Closing Date is subject to
the prior or concurrent satisfaction of the following conditions:

 

(a)           Execution of Agreement.  The Administrative Agent shall have received
(i) counterparts of this Credit Agreement, (ii) for the account of
each Lender, Revolving Notes, (iii) for the account of the Swingline
Lender, the Swingline Note, and (iv) counterparts of the 364-Day Credit
Agreement, in each case conforming to the requirements of this Credit Agreement
and executed by a duly authorized officer of each party thereto.

 

(b)           Authority Documents.  The Administrative Agent shall have received
the following:

 

(i)            Articles of Incorporation.  Copies of the articles of incorporation or
other charter documents, as applicable, of each Borrower certified (A) by the
secretary or an assistant secretary of such Borrower (pursuant to a secretary’s
certificate in substantially the form of Schedule 4.1(b) attached
hereto) as of the Closing Date to be true and correct and in force and effect
as of such date, and (B) to be true and complete as of a recent date by the
appropriate Governmental Authority of the state of its incorporation or
organization, as applicable.

 

(ii)           Resolutions.  Copies of resolutions of the board of
directors or comparable managing body of each Borrower approving and adopting
the Credit Documents, the transactions contemplated therein and authorizing
execution and delivery thereof, certified by a secretary or assistant secretary
of such Borrower (pursuant to a secretary’s certificate in substantially the
form of Schedule 4.1(b) attached hereto) as of the Closing Date to
be true and correct and in force and effect as of such date.

 

(iii)          Bylaws.  A copy of the bylaws or comparable operating
agreement of each Borrower certified by a secretary or assistant secretary of
such Borrower (pursuant to a secretary’s certificate in substantially the form
of Schedule 4.1(b) attached hereto) as of the Closing Date to be
true and correct and in force and effect as of such date.

 

46

 

(iv)          Good Standing.  Copies of (i) certificates of good
standing, existence or its equivalent with respect to the each Borrower
certified as of a recent date by the appropriate Governmental Authorities of
the state of incorporation and each other state in which the failure to so
qualify and be in good standing could reasonably be expected to result in a
Material Adverse Change on the business or operations of the Borrowers and the
Subsidiaries in such state and (ii) a certificate indicating payment of
all corporate franchise taxes certified as of a recent date by the appropriate
governmental taxing authorities.

 

(v)           Incumbency.  An incumbency certificate of each Borrower
certified by a secretary or assistant secretary (pursuant to a secretary’s
certificate in substantially the form of Schedule 4.1(b) attached
hereto) to be true and correct as of the Closing Date.

 

(c)           Legal Opinions of Counsel.
Subject to Section 4.3(b), the Administrative Agent shall have received
opinions of counsel for the Borrowers, dated the Closing Date and addressed to
the Administrative Agent and the Lenders, which opinion shall provide that the
Borrowers are in compliance with (i) all corporate instruments and (ii) in all
material respects, Contractual Obligations, in each case, on the Closing Date
after giving effect to initial Extensions of Credit hereunder.

 

(d)           Officer’s Certificate.  The Administrative Agent shall have received
a certificate executed by a Responsible Officer of the Company as of the
Closing Date stating that immediately after giving effect to this Credit
Agreement, the other Credit Documents, and all the transactions contemplated
therein to occur on such date, (i) no Default or Event of Default exists, (ii)
all representations and warranties contained herein and in the other Credit
Documents are true and correct, and (iii) the Company is in compliance with
each of the financial covenants set forth in Section 6.6, as demonstrated by
covenant calculations on a schedule attached thereto.

 

(e)           Account Designation Letter.  The Administrative Agent shall have received
the executed Account Designation Letter in the form of Schedule 1.1
hereto.

 

(f)            Solvency Certificate.  The Administrative Agent shall have received
an officer’s certificate for each Borrower prepared by a Responsible Officer of
such Borrower as to the financial condition, solvency and related matters of
such Borrower, in each case after giving effect to the initial borrowings under
the Credit Documents, in substantially the form of Schedule 4.1(f)
hereto.

 

(g)           Material Adverse Change.  No Material Adverse Change shall have
occurred since December 31, 2003.

 

(h)           Financial Statements.  The Administrative Agent shall have received
copies of the financial statements referred to in Section 3.4 hereof, each
in form and substance satisfactory to it.

 

47

 

(i)            Fees.  The Administrative Agent and the Lenders
shall have received all fees, if any, owing pursuant to the Fee Letter and
Section 2.4.

 

(j)            Termination of Existing
Indebtedness.  All existing
Indebtedness for borrowed money of the Borrowers and the Company’s Subsidiaries
with respect to the Bilateral Credit Agreements shall have been (or
contemporaneously with funding will be) repaid in full, all commitments
thereunder shall have been terminated and all Liens relating thereto, if any,
shall have been terminated.

 

(k)           Corporate Structure.  The corporate capital and ownership
structure of the Borrowers shall be as described in the Form 10-K of the
Company for the year ended December 31, 2003. 
The Administrative Agent and the Lenders shall be satisfied with the
corporate and capital structure of the Borrowers and the Material Subsidiaries.

 

Section 4.2            Conditions to All Extensions of
Credit.

 

The obligation of each
Lender to make any Extension of Credit hereunder is subject to the satisfaction
of the following conditions precedent on the date of making such Extension of
Credit:

 

(a)           Representations and Warranties.  The representations and warranties made by
the Borrowers herein, in the other Credit Documents or which are contained in
any certificate furnished at any time under or in connection herewith shall be
true and correct on and as of the date of such Extension of Credit as if made
on and as of such date, unless stated to relate solely to an earlier date, in
which case such representations and warranties shall be true and correct as of
such earlier date.

 

(b)           No Default or Event of Default.  No Default or Event of Default shall have
occurred and be continuing on such date or after giving effect to the Extension
of Credit to be made on such date unless such Default or Event of Default shall
have been waived in accordance with this Credit Agreement or other applicable
instrument or agreement.

 

(c)           Compliance with Commitments.  Immediately after giving effect to the
making of any such Extension of Credit (and the application of the proceeds thereof),
(i) the sum of outstanding Revolving Loans plus outstanding
Swingline Loans plus LOC Obligations shall not exceed the Aggregate
Revolving Committed Amount, (ii) the LOC Obligations shall not exceed the
LOC Committed Amount and (iii) the Swingline Loans shall not exceed the
Swingline Committed Amount.

 

(d)           Additional Conditions to Revolving
Loans.  If a Revolving Loan is
requested, all conditions set forth in Section 2.1 shall have been
satisfied.

 

(e)           Additional Conditions to Swingline
Loans.  If a Swingline Loan is
requested, all conditions set forth in Section 2.3 shall have been
satisfied.

 

48

 

(f)            Additional Conditions to Letters
of Credit.  If the issuance of a
Letter of Credit is requested, all conditions set forth in Section 2.2
shall have been satisfied.

 

Each request for an
Extension of Credit and each acceptance by a Borrower of any such Extension of
Credit shall be deemed to constitute a representation by such Borrower as to
the matters set forth in paragraphs (a) and (b) of this Section 4.2.

 

Section 4.3            Condition to Initial Extension of
Credit to any Foreign Borrower.

 

(a)           The obligation of each Lender to make
any initial Extension of Credit to a Foreign Borrower hereunder is subject to
receipt by the Administrative Agent of the English translation of the documents
set forth in Section 4.1(b) in form and substance reasonably satisfactory to
the Administrative Agent.

 

(b)           The obligation of each Lender to make
any initial Extension of Credit to the Japanese Borrower hereunder is subject
to receipt by the Administrative Agent:

 

(i)            opinion of counsel for the Japanese
Borrower, addressed to the Administrative Agent and the Lenders, which opinion
shall provide that the Japanese Borrower is in compliance with (i) all
corporate instruments and (ii) in all material respects, Contractual
Obligations after giving effect to initial Extensions of Credit hereunder, in
form and substance reasonably satisfactory to the Administrative Agent;  and

 

(ii)           a duly executed promissory note of
the Japanese Borrower to Fortis Capital Corp. and KeyBank National Association
in substantially the form of Schedule 2.1(e).

 

ARTICLE V

 

AFFIRMATIVE COVENANTS

 

The Borrowers hereby
covenant and agree that on the Closing Date, and thereafter for so long as this
Credit Agreement is in effect and until the Commitments have terminated, no
Note remains outstanding and unpaid and the Borrower Obligations, together with
interest, Commitment Fee, are paid in full, the Borrowers will:

 

Section 5.1            Financial
Information.

 

Furnish to the
Administrative Agent and each of the Lenders:

 

(a)           As soon as available and in any event
within 45 days after the end of each of the first three quarters of each fiscal
year, the Company’s Form 10-Q containing the consolidated balance sheets of the
Company and its Subsidiaries as at the end of such

 

49

 

quarterly fiscal period
and statements of earnings and cash flow of the Company and its Subsidiaries on
a consolidated basis for such period, certified by a Responsible Officer of the
Company;

 

(b)           as soon as available and in any event
within 90 days after the end of each fiscal year of the Company, the Company’s
Form 10-K containing a copy of the annual audit report for such fiscal year for
the Company and its Subsidiaries on a consolidated basis, including balance
sheets of the Company and its Subsidiaries on a consolidated basis as of the
end of such fiscal year and statements of earnings and cash flow on a consolidated
basis for such fiscal year, in each case certified in a manner acceptable to
the Administrative Agent by independent public accountants acceptable to the
Administrative Agent;

 

(c)           concurrently with the delivery of the
financial statements described in paragraphs (a) and (b), a certificate from a
Responsible Officer of the Company certifying whether there exists any Default
or Event of Default, and setting forth the Leverage Ratio and the Fixed Charge
Coverage Ratio as of the end of the period covered by such financial
statements;

 

(d)           promptly, copies of all financial
statements and reports that the Company sends to its shareholders, and copies
of all financial statements and regular, periodical or special reports
(including Forms 10-K, 10-Q and 8-K) that the Company or any Subsidiary may
make to, or file with, the SEC; and

 

(e)           such other information with respect
to the condition or operations, financial or otherwise, of the Company and its
Subsidiaries as the Administrative Agent or any Lender may from time to time
reasonably request.

 

Any of the above documents that are filed
electronically by the Company with the SEC shall be deemed to have been
provided to the Administrative Agent and the Lenders on the date the same are
available on EDGAR.

 

Section 5.2            Use
of Proceeds.

 

Use the proceeds of Loans
for the general corporate purposes of the Borrowers, including, without
limitation, the repurchase of the Company’s shares.

 

Section 5.3            Payment
of Obligations.

 

If and to the extent the
failure to do so could reasonably be expected to cause a Material Adverse
Change, pay, discharge or otherwise satisfy at or before maturity or before
they become delinquent, as the case may be, all its Indebtedness and other
obligations of whatever nature, except where the amount or validity thereof is
currently being contested in good faith by appropriate proceedings and reserves
in conformity with GAAP with respect thereto have been provided on the books of
the Company; and cause each of its Subsidiaries so to do.

 

50

 

Section 5.4            Conduct of Business and
Maintenance of Existence.

 

(a)           Continue to engage in business of the
same general type as now conducted by it and preserve, renew and keep in full
force and effect its corporate existence and take all reasonable action to
maintain all rights, privileges and franchises necessary or desirable in the
normal conduct of its business (except to the extent that failure to do so
could not, individually or in the aggregate, reasonably be expected to cause a
Material Adverse Change).

 

(b)           Comply with all Contractual
Obligations and Requirements of Law except to the extent that failure to comply
therewith could not individually or in the aggregate, reasonably be expected to
cause a Material Adverse Change.

 

Section 5.5            Insurance.

 

Maintain on a
consolidated basis, adequate insurance coverage on all its properties, with
financially sound and reputable insurance companies.

 

Section 5.6            Books
and Records.

 

Keep proper books of
records and account in which full, true and correct entries in conformity with
GAAP and all Requirements of Law shall be made of all dealings and transactions
in relation to its business and activities.

 

Section 5.7            Notices.

 

Promptly, upon gaining
actual knowledge thereof, give notice to the Administrative Agent and each
Lender of

 

(a)           the occurrence of any Default or
Event of Default, and

 

(b)           any Material Adverse Change;
provided, however, that no Borrower shall be required to give notice under this
paragraph (b) unless such change requires the Company to file a report on
Form 8-K with the SEC.

 

Each notice pursuant to
this subsection shall be accompanied by a statement of a Responsible Officer
setting forth details of the occurrence referred to therein and stating what
action (if any) the Company proposes to take with respect thereto.

 

Section 5.8            Payment
of Taxes.

 

If and to the extent the
failure to do any of the following could, individually or in the aggregate,
reasonably be expected to cause a Material Adverse Change, pay and discharge,
and cause each Subsidiary to pay and discharge, prior to their becoming
delinquent all taxes, assessments and other governmental charges or levies
imposed upon it or its income or upon any of its property or assets, or upon
any part thereof, as well as all lawful claims of any kind

 

51

 

(including claims for
labor, materials and supplies) which, if unpaid, might by law become a Lien
upon its property; provided, that no Borrower nor any Subsidiary will be
required to pay any such tax, assessment, charge, levy or claim if the amount,
applicability or validity thereof shall be contested in good faith by
appropriate proceedings or other appropriate actions diligently conducted and
if such Borrower or any such Subsidiary shall have set aside on its books such
reserves, if any, with respect thereto as are required by GAAP and deemed
appropriate by the Company and its independent public accountants.

 

Section 5.9            Further
Assurances.

 

From time to time
hereafter, execute and deliver, or cause to be executed and delivered, such
additional instruments, certificates or documents, and will take all such
actions, as the Administrative Agent or any Lender may reasonably request, for
the purposes of implementing or effectuating the provisions of the Credit
Documents.  Upon the exercise by the
Administrative Agent or any Lender of any power, right, privileges or remedy
pursuant to the Credit Documents, which requires any consent, approval,
recording, qualification or authorization of any Governmental Authority, the
applicable Borrower will execute and deliver, or will cause the execution and
delivery of, all applications, certifications, instruments and other documents
and papers that the Administrative Agent or any Lender may be required to
obtain from such Borrower for such governmental consent, approval, recording,
qualification or authorization.

 

Section 5.10         No Dividend Restrictions.

 

Neither the Company nor
any wholly-owned Material Subsidiary of the Company is a party to, nor will any
wholly-owned Material Subsidiary of the Company become a party to, any
agreement prohibiting or restricting the payment of dividends.

 

ARTICLE VI

 

NEGATIVE
COVENANTS

 

The Borrowers hereby
covenant and agree that on the Closing Date, and thereafter for so long as this
Credit Agreement is in effect and until the Commitments have terminated, no
Note remains outstanding and unpaid and the Borrower Obligations, together with
interest, Commitment Fee and all other amounts owing to the Administrative
Agent or any Lender hereunder, are paid in full that:

 

Section 6.1            Limitation
on Liens.

 

No Borrower will, nor
will they permit any Subsidiary to, create, assume, incur or suffer to exist
any Lien on any asset now owned or hereafter acquired by it, except for the
following:

 

(a)           Liens existing on the date hereof,
which are reflected in the balance sheet referred to in Section 3.4 hereof or
the footnotes thereto, and renewals, extensions and continuations thereof,
provided that such renewals, extensions and continuations shall not

 

52

 

(i) increase the
Indebtedness secured thereby or (ii) extend the coverage thereof beyond the
original coverage of such Lien;

 

(b)           Liens for taxes, assessments or other
governmental charges not yet delinquent or being contested in good faith and by
appropriate proceedings; Liens in connection with workers’ compensation,
unemployment insurance or other social security obligations; Liens securing the
performance of bids, tenders, contracts, surety and appeal bonds; Liens to
secure progress or partial payments and other Liens of like nature arising in
the ordinary course of business; mechanics’, workmen’s, materialmen’s or other
like Liens arising in the ordinary course of business in respect of obligations
which are not yet due or which are being contested in good faith; and other
Liens arising in the ordinary course of business and incidental to the conduct
of the business of the Company or such Subsidiary or to the ownership of its
properties or assets, which were not incurred in connection with the borrowing
of money and which do not materially detract front the value of the properties
or assets of the Company or materially affect the use thereof in the operation
of its business;

 

(c)           Liens in respect of judgments and
awards to the extent that such judgments or awards are being contested in good
faith and adequate insurance or appropriate reserves are maintained with
respect thereto on the books of the Company to the extent required by GAAP and
so long as execution is not levied thereunder;

 

(d)           Liens on any property acquired after
the date hereof which Liens existed when such property was acquired, and
extensions and renewals of such Liens; provided that no such extension or
renewal shall increase the aggregate amount of Indebtedness secured thereby,
nor add to the property subject to such Lien;

 

(e)           any Lien on any asset securing
Indebtedness incurred or assumed for the purpose of financing all or any part
of the cost of acquiring or improving such asset; provided that such Lien
attaches to such asset concurrently with or within 120 days after the
acquisition or completion of the improvement thereof;

 

(f)            other Liens incurred by the Company
in the ordinary course of its business, provided that the aggregate amount of
Indebtedness secured by all Liens permitted by this clause (f) shall not exceed
$20,000,000 in the aggregate;

 

(g)           zoning restrictions, easements,
licenses, reservations, provisions, covenants, conditions, waivers,
restrictions on the use of property or minor irregularities of title which do
not in the aggregate materially detract from the value of its property or
assets or materially impair the use thereof in the operations, business or
prospects of the Company or its Subsidiaries; and

 

(h)           Liens on the property or assets of
any Subsidiary in favor of the Company or any Subsidiary (other than any Liens
on the property or assets of any Foreign Borrower in favor of any Foreign
Subsidiary (other than another Foreign Borrower)).

 

53

 

It being agreed that
nothing in this Section shall be deemed to directly or indirectly limit any
lien that the Company or any of its Subsidiaries may grant to any other Person
on any margin stock (within the meaning of Regulation U of the Board of
Governors of the Federal Reserve System) owned thereby to the
extent such limitation could result in the view that the Borrower Obligations
hereunder are directly or indirectly secured by such margin stock.

 

Section 6.2            Dissolutions and Mergers.

 

Neither the Company nor
any Foreign Borrower shall merge into or consolidate with or into any
corporation or entity, unless, after giving effect to such merger or
consolidation (a) the Company or such Foreign Borrower, as applicable, is the
surviving corporation, and (b) no Default or Event of Default has occurred and
is continuing or would result therefrom.

 

Section 6.3            Disposition
of Assets.

 

The Company shall not,
and shall not permit any of its Subsidiaries to, convey, sell, assign, lease,
transfer or dispose all or any portion of its assets (including accounts
receivable and Capital Stock of Subsidiaries) to any Person in a single
transaction or in a series of transactions, except for

 

(a)           any Sale in the ordinary course of
business; and

 

(b)           so long as no Default or Event of
Default has occurred and is continuing or would result therefrom, Sales of
assets with an aggregate book value not exceeding 10% of the consolidated
assets of the Company and its Subsidiaries (as determined in accordance with
GAAP and this Section 6.3) as of the end of the most recently concluded Fiscal
Year; provided that, for purposes of this paragraph (b):

 

(i)            the consolidated assets of the
Company and its Subsidiaries as of the end of the most recently concluded
Fiscal Year shall exclude any interest of the Company in The TriZetto Group
Inc., and any shares of Capital Stock of a Subsidiary that are subject to a
Sale shall be valued at the aggregate net book value of the assets of such
Subsidiary multiplied by a fraction of which the numerator is the aggregate
number of shares of Capital Stock of such Subsidiary issued or disposed of in
such Sale and the denominator is the aggregate number of shares of Capital
Stock of such Subsidiary outstanding immediately prior to such Sale; and

 

(ii)           any Sale (x) by any Subsidiary to the
Company of a wholly-owned Subsidiary and (y) any Sale of the Company’s interest
in The TriZetto Group Inc. shall not be taken into account.

 

It being agreed that
nothing in this Section shall be deemed to directly or indirectly limit any
sale by the Company or any of its Subsidiaries to any other Person of margin
stock (within the meaning of Regulation U of the Board
of Governors of the Federal Reserve System) to the

 

54

 

extent such limitation could result in
the view that the Borrower Obligations hereunder are directly or indirectly
secured by such margin stock.

 

Section 6.4            Conduct
of Business.

 

Neither the Company nor
any Foreign Borrower shall make or permit to be made any material change in the
character of its business as carried on at the Closing Date.

 

Section 6.5            Compliance with Federal Reserve
Regulations.

 

Except for systematic
stock repurchase programs from time to time conducted by the Company, neither
the Company nor any Foreign Borrower shall use any part of the proceeds of any
credit extended under this Credit Agreement or the other Credit Documents to
purchase or carry, or to reduce or retire any Indebtedness incurred to purchase
or carry, any margin stock (as defined in Regulation U of the Board of
Governors of the Federal Reserve System) or to extend credit to any Person for
the purpose of purchasing or carrying any margin stock.

 

Section 6.6            Financial
Covenants.

 

The Company will not
permit (a) the Leverage Ratio to exceed at any time 2.50 to 1.00 or (b) the
Fixed Charge Coverage Ratio to be less than at any time 2.00 to 1.00.

 

Section 6.7            Subsidiary Indebtedness.

 

No Subsidiary will create,
incur, assume, or suffer to exist any Indebtedness that, when totaled with all
other Indebtedness of the Subsidiaries, is in excess of $250,000,000.

 

ARTICLE VII

 

EVENTS
OF DEFAULT

 

Section 7.1            Events
of Default.

 

An Event of Default shall
exist upon the occurrence of any of the following specified events (each an “Event
of Default”):

 

(a)           Any Borrower shall fail to pay (i)
any principal on any Note when due in accordance with the terms thereof or
hereof; or any Borrower shall fail to reimburse the Issuing Lender for any LOC
Obligations when due in accordance with the terms hereof; or (ii) any interest
on any Note or any fee or other amount payable hereunder when due in accordance
with the terms thereof or hereof, and such failure shall continue unremedied
for five (5) days; or

 

(b)           Any representation or warranty made
or deemed made herein or in any of the other Credit Documents or which is
contained in any certificate, document or

 

55

 

financial or other statement
furnished at any time under or in connection with this Credit Agreement shall
prove to have been incorrect, false or misleading in any material respect on or
as of the date made or deemed made; or

 

(c)           (i) Any Borrower shall fail to
perform, comply with or observe any term, covenant or agreement applicable to
it contained in Section 5.1, 5.2, 5.4(a), Section 5.7 or Article VI
hereof; or (ii) any Borrower shall default on any other covenant,
contained in this Credit Agreement or the other Credit Documents or any other
agreement, document or instrument among any Borrower, the Administrative Agent
and the Lenders or executed by any Borrower in favor of the Administrative
Agent or the Lenders (other than as described in Sections 7.1(a) or 7.1(c)(i)
above), and in the event such breach or failure to comply continues for thirty
(30) days of its occurrence after the earlier of a Responsible Officer becoming
aware of such default or the receipt by the Company of written notice of such
default from the Administrative Agent; or

 

(d)           The Company or any of its
Subsidiaries shall (i) default in any payment of principal of or interest
on any Indebtedness of the Company or any of its Subsidiaries (other than the
Notes) in a principal amount outstanding of at least $10,000,000 in the
aggregate beyond the period of grace (not to exceed 30 days), if any,
provided in the instrument or agreement under which such Indebtedness was
created; or (ii) default in the observance or performance of any other
agreement or condition relating to any Indebtedness of the Company or any of
its Subsidiaries in a principal amount outstanding of at least $10,000,000 in
the aggregate or contained in any instrument or agreement evidencing, securing
or relating thereto, or any other event shall occur or condition exist, in each
case, the effect of which default or other event or condition is to cause, or
to permit the holder or holders of such Indebtedness or beneficiary or
beneficiaries of such Indebtedness (or a trustee or agent on behalf of such
holder or holders or beneficiary or beneficiaries) to cause, with the giving of
notice if required, such Indebtedness to become due prior to its stated
maturity; or

 

(e)           The Company or any Material
Subsidiary shall (i) become insolvent or generally fail to pay, or admit in
writing its ability or unwillingness to pay, debts as they become due; (ii)
apply for, consent to or acquiesce in the appointment of a trustee, receiver,
sequestrator or other custodian for the Company or any Material Subsidiary or
any substantial part of the property thereof, or make a general assignment for
the benefit of creditors; (iii) in the absence of such application, consent or
acquiescence, permit or suffer to exist the appointment of a trustee, receiver,
sequestrator or other custodian for the Company or any Material Subsidiary or
for a substantial part of the property thereof, and such trustee, receiver,
sequestrator or other custodian shall not be discharged within 60 days; (iv)
permit or suffer to exist the commencement of any bankruptcy, reorganization,
debt arrangement or other case or proceeding under any bankruptcy or insolvency
law, or any dissolution, winding up or liquidation proceeding, in respect of
the Company or any Material Subsidiary and, if any such case or proceeding
shall be consented to or acquiesced in by the Company or any Material
Subsidiary or shall result in the entry of an order for relief or shall remain
for sixty (60) days undismissed; or (v) take any action authorizing, or in
furtherance of, any of the foregoing; or

 

56

 

(f)            Any judgment or order shall be
entered against any Borrower or any of the Material Subsidiaries involving a
liability (to the extent not covered by insurance) of $10,000,000 or more and
such judgment or order shall not be paid or otherwise satisfied, and either (i)
enforcement proceedings shall have been commenced by any creditor upon such
judgment or order, or (ii) there shall be any period of ten
(10) consecutive days during which a stay of enforcement of such judgment
or order, by reason of a pending appeal or otherwise, shall not be in effect;
or

 

(g)           Any Plan shall fail to satisfy the
minimum funding standard required for any plan year or part thereof or a waiver
of such standard or extension of any amortization period is sought or granted
under Section 412 of the Code, any Plan shall have had or is likely to have a
trustee appointed to administer such Plan, any Plan is, shall have been or is
likely to be terminated or the subject of termination proceedings under ERISA,
any Plan shall have an Unfunded Current Liability, a contribution required to
be made to a Plan or a foreign pension plan has not been timely made or the
Company, any Subsidiary or any ERISA Affiliate has incurred or is likely to
incur a liability to or on account of a Plan under Section 409, 502(i), 502(1),
515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section 401
(a)(29), 4971, 4975 or 4980 of the Code (ii) there shall result from any such
event or events the imposition of a Lien, the granting of a security interest,
or a liability or a material risk of incurring a liability, and (iii) which
Lien, security interest or liability, individually and/or in the aggregate, in
the opinion of the Administrative Agent or any Lender will cause a Material
Adverse Change; or

 

(h)           There shall occur a Change of
Control.

 

Section 7.2            Acceleration;
Remedies.

 

Upon the occurrence of an
Event of Default, then, and in any such event, (a) if such event is an
Event of Default specified in Section 7.1(e) above, automatically the
Commitments shall immediately terminate and the Loans (with accrued interest
thereon), and all other amounts under the Credit Documents (including without
limitation the maximum amount of all contingent liabilities under Letters of
Credit) shall immediately become due and payable, and (b) if such event is
any other Event of Default, either or both of the following actions may be
taken:  (i) with the written
consent of the Required Lenders, the Administrative Agent may, or upon the
written request of the Required Lenders, the Administrative Agent shall, by
notice to the Borrowers declare the Commitments to be terminated forthwith,
whereupon the Commitments shall immediately terminate; and (ii) with the written
consent of the Required Lenders,  the Administrative Agent may, or upon
the written request of the Required Lenders, the Administrative Agent shall, by
notice of default to the Borrowers, declare the Loans (with accrued interest
thereon) and all other amounts owing under this Credit Agreement and the Notes
to be due and payable forthwith and direct the Borrowers to pay to the
Administrative Agent cash collateral as security for the LOC Obligations for
subsequent drawings under then outstanding Letters of Credit an amount equal to
the maximum amount of which may be drawn under Letters of Credit then
outstanding, whereupon the same shall immediately become due and payable.

 

57

 

ARTICLE
VIII

 

THE ADMINISTRATIVE AGENT

 

Section 8.1            Appointment.

 

Each Lender hereby
irrevocably designates and appoints Wachovia as the Administrative Agent of
such Lender under this Credit Agreement, and each such Lender irrevocably
authorizes Wachovia, as the Administrative Agent for such Lender, to take such
action on its behalf under the provisions of this Credit Agreement and to
exercise such powers and perform such duties as are expressly delegated to the
Administrative Agent by the terms of this Credit Agreement, together with such
other powers as are reasonably incidental thereto.  Notwithstanding any provision to the contrary elsewhere in this
Credit 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 Credit Agreement or otherwise exist against the
Administrative Agent.

 

Section 8.2            Delegation
of Duties.

 

The Administrative Agent
may execute any of its duties under this Credit Agreement 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.  Without limiting the foregoing, the
Administrative Agent may appoint one of its affiliates as its agent to perform
its the functions of the Administrative Agent hereunder relating to the
advancing of funds to the Borrowers and distribution of funds to the Lenders
and to perform such other related functions of the Administrative Agent
hereunder as are reasonably incidental to such functions.

 

Section 8.3            Exculpatory Provisions.

 

Neither the
Administrative Agent nor any of its 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 Credit Agreement (except for 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 the Borrowers or any officer thereof contained in this
Credit Agreement or in any certificate, report, statement or other document
referred to or provided for in, or received by the Administrative Agent under
or in connection with, this Credit Agreement or for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of any of the Credit
Documents or for any failure of any of the Borrowers to perform its obligations
hereunder or thereunder.  The
Administrative Agent shall not be under any obligation to any Lender to
ascertain or to inquire as to the observance or performance by the Borrowers of
any of the agreements contained in, or

 

58

 

conditions of, this
Credit Agreement, or to inspect the properties, books or records of the
Borrowers.

 

Section 8.4            Reliance by the Administrative
Agent.

 

The Administrative Agent
shall be entitled to rely, and shall be fully protected in relying, upon any
Credit Document, writing, resolution, notice, consent, certificate, affidavit,
letter, cablegram, telegram, telecopy, telex or teletype message, statement,
order or other document or conversation believed by it in good faith to be
genuine and correct and to have been signed, sent or made by the proper Person
or Persons and upon advice and statements of legal counsel (including, without
limitation, counsel to the Borrowers), 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) a written notice of assignment,
negotiation or transfer thereof shall have been filed with the Administrative
Agent and (b) the Administrative Agent shall have received the written agreement
of such assignee to be bound hereby as fully and to the same extent as if such
assignee were an original Lender party hereto, in each case in form
satisfactory to the Administrative Agent. 
The Administrative Agent shall be fully justified in failing or refusing
to take any action under this Credit Agreement unless it shall first receive
such advice or concurrence of the Required Lenders or all the Lenders as may be
required under this Credit Agreement or it shall first be indemnified to its
satisfaction by the Lenders against any and all liability and expense which may
be incurred by it by reason of taking or continuing to take any such
action.  The Administrative Agent shall,
subject to Section 8.3, be fully protected in acting, or in refraining from
acting, under any of the Credit Documents in accordance with a request of the
Required Lenders or all of the Lenders, as may be required under this Credit
Agreement, 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
Notes.

 

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 hereunder unless the Administrative Agent has received
notice from a Lender or a Borrower referring to this Credit 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 prompt notice thereof to the Lenders. 
The Administrative Agent shall take such action with respect to such
Default or Event of Default as shall be reasonably directed by the Required
Lenders, or all Lenders, as applicable; provided, however, that
unless and until the Administrative Agent shall have received such directions,
the Administrative Agent may (but shall not be obligated to) take such action,
or refrain from taking such action, with respect to such Default or Event of
Default as it shall deem advisable in the best interests of the Lenders except
to the extent that this Credit Agreement expressly requires that such action be
taken, or not taken, only with the consent or upon the authorization of the
Required Lenders, or all of the Lenders, as the case may be.

 

59

 

Section 8.6            Non-Reliance on the
Administrative Agent and Other Lenders.

 

Each Lender expressly
acknowledges that neither the Administrative Agent nor any of its officers,
directors, employees, agents, attorneys-in-fact or affiliates has made any
representation or warranty to it and that no act by the Administrative Agent
hereinafter taken, including any review of the affairs of the Borrowers, shall
be deemed to constitute any representation or warranty by the Administrative
Agent to any Lender.  Each Lender
represents to the Administrative Agent that it has, independently and without
reliance upon the Administrative Agent or any other Lender, and based on such
documents and information as it has deemed appropriate, made its own appraisal
of and investigation into the business, operations, property, financial and
other condition and creditworthiness of the Borrowers and made its own decision
to make its Loans hereunder and enter into this Credit Agreement.  Each Lender also represents that it will,
independently and without reliance upon the Administrative Agent or any other
Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals
and decisions in taking or not taking action under this Credit Agreement, and
to make such investigation as it deems necessary to inform itself as to the
business, operations, property, financial and other condition and
creditworthiness of the Borrowers. 
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 the Borrowers which 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 the Administrative Agent in its capacity as such hereunder (to the
extent not reimbursed by the applicable Borrower and without limiting the
obligation of the Borrowers to do so), ratably according to their respective
Commitment Percentages in effect on the date on which indemnification is sought
under this Section, from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind whatsoever which may at any time (including, without
limitation, at any time following the payment of the Notes) be imposed on,
incurred by or asserted against the Administrative Agent in any way relating to
or arising out of any Credit Document 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 the Administrative Agent under or in
connection with any of the foregoing; provided, however, 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 to the extent resulting from the Administrative
Agent’s gross negligence or willful misconduct, as determined by a court of
competent jurisdiction.  The agreements
in this Section 8.7 shall survive the termination of this Credit Agreement
and payment of the Notes and all other amounts payable hereunder.

 

60

 

Section 8.8            Administrative Agent in its
Individual Capacity.

 

The Administrative Agent
and its affiliates may make loans to, accept deposits from and generally engage
in any kind of business with the Borrowers as though the Administrative Agent
was not an Administrative Agent hereunder. 
With respect to its Loans made or renewed by it and any Note issued to
it, the Administrative Agent shall have the same rights and powers under this
Credit Agreement as any Lender and may exercise the same as though it were not
the Administrative Agent, and the terms “Lender” and “Lenders” shall include
the Administrative Agent in its individual capacity.

 

Section
8.9            Successor Administrative
Agent.

 

The Administrative Agent
may resign as Administrative Agent upon 30 days’ prior notice to the
Borrowers and the Lenders.  If the
Administrative Agent shall resign as an Administrative Agent under this Credit
Agreement and the Notes, then the Required Lenders shall appoint from among the
Lenders a successor agent for the Lenders, which successor agent shall be
approved by the Company with such approval not to be unreasonably withheld
(provided, however if an Event of Default shall exist at such time, no approval
of the Company shall be required hereunder), 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 Administrative 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 Credit Agreement or any holders of the
Notes.  After any retiring
Administrative Agent’s resignation as Administrative Agent, the provisions of
this Section 8.9 shall inure to its benefit as to any actions taken or omitted
to be taken by it while it was Administrative Agent under this Credit
Agreement.

 

Section 8.10         Nature
of Duties.

 

Except as otherwise expressly stated herein, any agent
(other than the Administrative Agent) or arranger listed from time to time on the
cover page of this Credit Agreement shall have no obligations, responsibilities
or duties under this Credit Agreement or under any other Credit Document other
than obligations, responsibilities and duties applicable to all Lenders in
their capacity as Lenders; provided, however, that such agents and arrangers
shall be entitled to the same rights, protections, exculpations and
indemnifications granted to the Administrative Agent under this
Article VIII in their capacity as an agent or arranger.

 

Section 8.11         Other
Agents; Arrangers.

 

Except as otherwise
expressly stated herein, any agent (other than the Administrative Agent) or
arranger listed from time to time on the cover page of this Credit Agreement
shall have no obligations, responsibilities or duties under this Credit
Agreement or under any other Credit Document other than obligations,
responsibilities and duties applicable to all Lenders in their capacity as
Lenders; provided, however, that such agents and arrangers shall be entitled to
the

 

61

 

same rights, protections,
exculpations and indemnifications granted to the Administrative Agent under
this Article VIII in their capacity as an agent or arranger.

 

ARTICLE IX

 

MISCELLANEOUS

 

Section 9.1            Amendments
and Waivers.

 

Neither this Credit
Agreement nor any of the other Credit Documents, nor any terms hereof or
thereof may be amended, supplemented, waived or modified except in accordance
with the provisions of this Section 9.1. 
The Required Lenders may, or, with the written consent of the Required
Lenders, the Administrative Agent may, from time to time, (a) enter into
with the Borrowers written amendments, supplements or modifications hereto and
to the other Credit Documents for the purpose of adding any provisions to this
Credit Agreement or the other Credit Documents or changing in any manner the
rights of the Lenders or of the Borrowers hereunder or thereunder or
(b) waive, on such terms and conditions as the Required Lenders may
specify in such instrument, any of the requirements of this Credit Agreement or
the other Credit Documents or any Default or Event of Default and its
consequences; provided, however, that no such amendment, waiver,
supplement, modification or release shall:

 

(i)            reduce the amount or extend the
scheduled date of maturity of any Loan or Note or any installment thereon, or
reduce the stated rate of any interest or fee payable hereunder (other than
interest at the increased post-default rate) or extend the scheduled date of
any payment thereof or increase the amount or extend the expiration date of any
Lender’s Commitment, in each case without the written consent of each Lender
directly affected thereby, or

 

(ii)           amend, modify or waive any provision
of this Section 9.1 or reduce the percentage specified in the definition
of Required Lenders, without the written consent of all the Lenders, or

 

(iii)          amend, modify or waive any provision
of Article VIII without the written consent of the then Administrative
Agent, or

 

(iv)          amend, modify or waive any provision
of the Credit Documents requiring consent, approval or request of the Required
Lenders or all Lenders, without the written consent of such Required Lenders or
Lenders as appropriate; or

 

(v)           amend, modify or waive any provision
of the Credit Documents affecting the rights or duties of the Administrative
Agent, the Issuing Lender or the Swingline Lender under any Credit Document
without the written consent of

 

62

 

the Administrative Agent,
the Issuing Lender and/or the Swingline Lender, as applicable, in addition to
the Lenders required hereinabove to take such action;

 

(vi)          amend or modify the definition of
Borrower Obligations to delete or exclude any obligation or liability described
therein without the written consent of each Lender and each Hedging Agreement
Provider directly affected thereby;

 

(vii)         amend, modify or waive any provision of
Section 2.11 in a manner that would alter the pro rata share of payments
required thereby without the written consent of each Lender directly affected
thereby.

 

Any such waiver,
amendment, supplement or modification and any such release shall apply equally
to each of the Lenders and shall be binding upon the Borrowers, the Lenders,
the Administrative Agent and all future holders of the Notes.  In the case of any waiver, the Borrowers,
the Lenders and the Administrative Agent shall be restored to their former
position and rights hereunder and under the outstanding Loans and Notes and
other Credit Documents, and any Default or Event of Default waived shall be
deemed to be cured and not continuing; but no such waiver shall extend to any
subsequent or other Default or Event of Default, or impair any right consequent
thereon.

 

Notwithstanding any of
the foregoing to the contrary, the consent of the Borrowers shall not be
required for any amendment, modification or waiver of the provisions of
Article VIII (other than the provisions of Section 8.9).  In addition, the Borrowers and the Lenders
hereby authorize the Administrative Agent to modify this Credit Agreement by
unilaterally amending or supplementing Schedule 2.1(a) from time to
time in the manner requested by the Borrowers, the Administrative Agent or any
Lender in order to reflect any assignments or transfers of the Loans as
provided for hereunder; provided, however, that the
Administrative Agent shall promptly deliver a copy of any such modification to
the Borrowers and each Lender.

 

Notwithstanding the fact
that the consent of all the Lenders is required in certain circumstances as set
forth above, (x) each Lender is entitled to vote as such Lender sees fit on any
bankruptcy reorganization plan that affects the Loans, and each Lender
acknowledges that the provisions of Section 1126(c) of the Bankruptcy Code
supersedes the unanimous consent provisions set forth herein and (y) the
Required Lenders may consent to allow a Borrower to use cash collateral in the
context of a bankruptcy or insolvency proceeding.

 

Section 9.2            Notices.

 

Except as otherwise
provided in Article II, all notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by
telecopy), and, unless otherwise expressly provided herein, shall be deemed to
have been duly given or made (a) when delivered by hand, (b) when
transmitted via telecopy (or other facsimile device) to the number set out
herein, (c) the Business Day immediately following the day on which the
same has been delivered prepaid to a reputable national overnight air courier
service, or (d) the third Business Day following the day on which the same
is sent by certified or registered mail, postage prepaid, in each case,
addressed as follows in the case of the Borrowers and the Administrative

 

63

 

Agent, and as set forth
on Schedule 9.2 in the case of the Lenders, or to such other
address as may be hereafter notified by the respective parties hereto and any
future holders of the Notes:

 

	
  The Company

  	
  IMS Health Incorporated

  
	
  and the other

  	
  1499 Post Road

  
	
  Borrowers:

  	
  Fairfield, Connecticut
  06284

  
	
   

  	
  Attention: Jeff Ford,
  Treasurer

  
	
   

  	
  Telecopier: (203)
  319-4533

  
	
   

  	
  Telephone: (203)
  319-4527

  
	
   

  	
   

  
	
  The Administrative

  	
  Wachovia Bank, National
  Association, as Administrative Agent

  
	
  Agent:

  	
  Charlotte Plaza

  
	
   

  	
  201 South College
  Street, CP-8

  
	
   

  	
  Charlotte,
  North Carolina 28288-0680

  
	
   

  	
  Attention: Syndication
  Agency Services

  
	
   

  	
  Telecopier: (704)
  383-0288

  
	
   

  	
  Telephone: (704)
  383-6591

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Wachovia Bank, National
  Association

  
	
   

  	
  One Wachovia Center,
  DC-5

  
	
   

  	
  Charlotte,
  North Carolina 28288-0737

  
	
   

  	
  Attention: Agency
  Management

  
	
   

  	
  Telecopier: (704)
  383-7611

  
	
   

  	
  Telephone: (704)
  715-7708

  
	
   

  	
   

  
	
   

  	
  with respect to Foreign
  Currency Loans:

  
	
   

  	
   

  
	
   

  	
  Wachovia Bank, National
  Association

  
	
   

  	
  London Branch

  
	
   

  	
  3 Bishopsgate

  
	
   

  	
  London, England EC2N3AB

  
	
   

  	
  Attention:

  	
  Maureen Hart

  
	
   

  	
  Facsimile:

  	
  011 44 207 929 4645

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Wachovia Bank, National
  Association

  
	
   

  	
  Charlotte Plaza

  
	
   

  	
  201 South College
  Street, CP-8

  
	
   

  	
  Charlotte,
  North Carolina 28288-0680

  
	
   

  	
  Attention: Syndication
  Agency Services

  
	
   

  	
  Telecopier: (704)
  383-0288

  
	
   

  	
  Telephone: (704)
  383-6591

  

 

64

 

Section 9.3            No Waiver; Cumulative Remedies.

 

No failure to exercise
and no delay in exercising, on the part of the Administrative Agent or any
Lender, any right, remedy, power or privilege hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies,
powers and privileges provided by law.

 

Section 9.4            Payment of Expenses and Taxes.

 

The Borrowers jointly and
severally agree (a) to pay or reimburse the Administrative Agent and the
Arranger for all their reasonable and documented out-of-pocket costs and
expenses incurred in connection with the development, preparation, negotiation,
printing and execution of, and any amendment, supplement or modification to,
this Credit Agreement and the other Credit Documents and any other documents
prepared in connection herewith or therewith, and the consummation and
administration of the transactions contemplated hereby and thereby, together
with the reasonable fees and disbursements of counsel to the Administrative
Agent and the Arranger, (b) to pay or reimburse each Lender and the
Administrative Agent for all its costs and expenses incurred in connection with
the enforcement or preservation of any rights under this Credit Agreement and
the other Credit Documents, including, without limitation, the reasonable fees
and disbursements of counsel to the Administrative Agent and to the Lenders,
and (c) on demand, to pay, indemnify, and hold each Lender and the
Administrative Agent harmless from, any and all recording and filing fees and
any and all liabilities with respect to, or resulting from any delay in paying,
stamp, excise and other similar taxes, if any, which may be payable or
determined to be payable in connection with the execution and delivery of, or
consummation or administration of any of the transactions contemplated by, or
any amendment, supplement or modification of, or any waiver or consent under or
in respect of, the Credit Documents and any such other documents, and (d) to
pay, indemnify, and hold each Lender and the Administrative Agent and their
Affiliates harmless from and against, any and all other liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever with respect to the
execution, delivery, enforcement, performance and administration of the Credit
Documents and any such other documents and the use, or proposed use, of
proceeds of the Loans (all of the foregoing, collectively, the “indemnified
liabilities”); provided, however, that the Borrowers shall
not have any obligation hereunder to any Agent or any Lender or any Affiliate
thereof with respect to indemnified liabilities to the extent (i) arising from
the gross negligence or willful misconduct of the Administrative Agent or any
such Lender or any such Affiliate, as determined by a court of competent
jurisdiction or (ii) relating to disputes among any Lender or Affiliate thereof
and the Administrative Agent or one or more other Lender or Affiliate thereof
unless such dispute is related to this Credit Agreement or the Extensions of
Credit hereunder.  No Borrower shall be
required to indemnify any Indemnified Party for any amount paid or payable to
any Indemnified Party in the compromise or settlement of any action, proceeding
or investigation without the prior written consent of the Company, which
consent shall not be unreasonably withheld. 
Promptly after receipt by an
Indemnified Party of notice of its involvement in any action, proceeding or
investigation, such Indemnified Party shall, if a claim for indemnification in

 

65

 

respect
thereof is to be made against the Company under this Credit Agreement, promptly
notify the Company in writing of such involvement.  Failure by the Indemnified Party to so notify the Company shall
not relieve the Company from the obligation to indemnify the Indemnified Party
under this Credit Agreement except to the extent that the Company suffers
actual prejudice as a result of such failure, and shall not relieve the Company
from its obligation to provide reimbursement and contribution to the
Indemnified Party.  It
is acknowledged and agreed that each Indemnified Party shall cooperate with the
Company in good faith to coordinate a mutual defense strategy and to enter into
joint defense agreements and will use commercially reasonable efforts to
minimize the costs thereof including, without limitation, (i) the delivery of
periodic updates with respect to legal and other expenses incurred, (ii)  limiting the engagement of legal counsel to
one law firm at any one time (excluding local counsel which may be engaged as
deemed necessary by the Indemnified Party) and (iii) the taking of such other
measures in connection therewith as may be reasonably requested by the Company.  The agreements in this
Section 9.4 shall survive repayment of the Loans and the Borrower Obligations.

 

Section 9.5            Successors and Assigns;
Participations; Purchasing Lenders.

 

(a)           This Credit Agreement shall be
binding upon and inure to the benefit of the Borrowers, the Lenders, the
Administrative Agent, all future holders of the Notes and their respective successors
and assigns, except that the Borrowers may not assign or transfer any of their
rights or obligations under this Credit Agreement or the other Credit Documents
without the prior written consent of each Lender; except to the extent any such
assignment results from the consummation of a merger or consolidation permitted
pursuant to Section 6.2 of this Credit Agreement.

 

(b)           Any Lender may, in the ordinary
course of its commercial banking business and in accordance with applicable
law, at any time sell to one or more banks or other entities (“Participants”)
participating interests in any Loan owing to such Lender, any Note held by such
Lender, any Commitment of such Lender, or any other interest of such Lender
hereunder.  In the event of any such
sale by a Lender of participating interests to a Participant, such Lender’s
obligations under this Credit Agreement to the other parties to this Credit
Agreement shall remain unchanged, such Lender shall remain solely responsible
for the performance thereof, such Lender shall remain the holder of any such
Note for all purposes under this Credit Agreement, and the Borrowers and the
Administrative Agent shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this
Credit Agreement.  No Lender shall
transfer or grant any participation under which the Participant shall have
rights to approve any amendment to or waiver of this Credit Agreement or any
other Credit Document except to the extent such amendment or waiver would
(i) extend the scheduled maturity of any Loan or Note or any installment
thereon in which such Participant is participating, or reduce the stated rate
or extend the time of payment of interest or fees thereon (except in connection
with a waiver of interest at the increased post-default rate) or reduce the
principal amount thereof, or increase the amount of the Participant’s
participation over the amount thereof then in effect (it being understood that
a waiver of any Default or Event of Default shall not constitute a change in
the terms of such participation, and that an increase in any Commitment or Loan
shall be permitted

 

66

 

without consent of any
participant if the Participant’s participation is not increased as a result
thereof) or (ii) consent to the assignment or transfer by the Borrowers of any
of their respective rights and obligations under this Credit Agreement.  In the case of any such participation, the
Participant shall not have any rights under this Credit Agreement or any of the
other Credit Documents (the Participant’s rights against such Lender in respect
of such participation to be those set forth in the agreement executed by such
Lender in favor of the Participant relating thereto) and all amounts payable by
the Borrowers hereunder shall be determined as if such Lender had not sold such
participation; provided that each Participant shall be entitled to the
benefits of Sections 2.16, 2.17 and 2.18 with respect to its participation in
the Commitments and the Loans outstanding from time to time; provided  further,
that no Participant shall be entitled to receive any greater amount pursuant to
such Sections than the transferor Lender would have been entitled to receive in
respect of the amount of the participation transferred by such transferor
Lender to such Participant had no such transfer occurred.

 

(c)           Any Lender may, in the ordinary
course of its commercial banking business and in accordance with applicable
law, at any time, sell or assign to any Lender or any Affiliate or Related Fund
thereof and with the consent of the Administrative Agent and, so long as no
Event of Default has occurred and is continuing, the Borrowers (in each case,
which consent shall not be unreasonably withheld or delayed), to one or more
additional banks or financial institutions or entities (“Purchasing Lenders”),
all or any part of its rights and obligations under this Credit Agreement and
the Notes in minimum amounts of $5,000,000 with respect to its Revolving
Commitment and its Revolving Loans (or, if less, the entire amount of such
Lender’s Revolving Commitment and Revolving Loans), pursuant to a Commitment
Transfer Supplement, executed by such Purchasing Lender and such transferor
Lender (and, in the case of a Purchasing Lender that is not then a Lender or an
affiliate or Related Fund thereof, the Administrative Agent and, so long as no
Event of Default has occurred and is continuing, the Company), and delivered to
the Administrative Agent for its acceptance and recording in the Register; provided,
however, that any sale or assignment to an existing Lender, or Affiliate
or Related Fund thereof, shall not require the consent of the Administrative
Agent or the Borrowers nor shall any such sale or assignment be subject to the
minimum assignment amounts specified herein. 
Upon such execution, delivery, acceptance and recording, from and after
the Transfer Effective Date specified in such Commitment Transfer Supplement,
(x) the Purchasing Lender thereunder shall be a party hereto and, to the extent
provided in such Commitment Transfer Supplement, have the rights and
obligations of a Lender hereunder with a Commitment as set forth therein, and
(y) the transferor Lender thereunder shall, to the extent provided in such
Commitment Transfer Supplement, be released from its obligations under this
Credit Agreement (and, in the case of a Commitment Transfer Supplement covering
all or the remaining portion of a transferor Lender’s rights and obligations
under this Credit Agreement, such transferor Lender shall cease to be a party
hereto).  Such Commitment Transfer
Supplement shall be deemed to amend this Credit Agreement to the extent, and
only to the extent, necessary to reflect the addition of such Purchasing Lender
and the resulting adjustment of Commitment Percentages arising from the
purchase by such Purchasing Lender of all or a portion of the rights and
obligations of such transferor Lender under this Credit

 

67

 

Agreement and the
Notes.  On or prior to the Transfer
Effective Date specified in such Commitment Transfer Supplement, the Borrowers,
at their own expense, shall execute and deliver to the Administrative Agent in
exchange for the Notes delivered to the Administrative Agent pursuant to such
Commitment Transfer Supplement new Notes to the order of such Purchasing Lender
in an amount equal to the Commitment assumed by it pursuant to such Commitment
Transfer Supplement and, unless the transferor Lender has not retained a
Commitment hereunder, new Notes to the order of the transferor Lender in an
amount equal to the Commitment retained by it hereunder.  Such new Notes shall be dated the Closing
Date and shall otherwise be in the form of the Notes replaced thereby.

 

(d)           The Administrative Agent shall
maintain at its address referred to in Section 9.2 a copy of each
Commitment Transfer Supplement delivered to it and a register (the “Register”)
for the recordation of the names and addresses of the Lenders and the Commitment
of, and principal amount of the Loans owing to, each Lender from time to
time.  The entries in the Register shall
be conclusive, in the absence of manifest error, and the Borrowers, the
Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register as the owner of the Loan recorded therein for all
purposes of this Credit Agreement.  The
Register shall be available for inspection by the Borrowers or any Lender at
any reasonable time and from time to time upon reasonable prior notice.

 

(e)           Upon its receipt of a duly executed
Commitment Transfer Supplement, together with payment to the Administrative
Agent by the transferor Lender or the Purchasing Lender, as agreed between
them, of a registration and processing fee of $3,500 for each Purchasing Lender
(other than an Affiliate of such Lender or a Related Fund) listed in such
Commitment Transfer Supplement and the Notes subject to such Commitment
Transfer Supplement, the Administrative Agent shall (i) accept such Commitment
Transfer Supplement, (ii) record the information contained therein in the
Register and  (iii) give prompt notice of such acceptance
and recordation to the Lenders and the Borrowers.

 

(f)            The Borrowers authorize each Lender
to disclose to any Participant or Purchasing Lender (each, a “Transferee”)
and any prospective Transferee any and all financial information in such
Lender’s possession concerning the Borrowers and its Affiliates which has been
delivered to such Lender by or on behalf of the Borrowers pursuant to this
Credit Agreement or which has been delivered to such Lender by or on behalf of
the Borrowers in connection with such Lender’s credit evaluation of the
Borrowers and its Affiliates prior to becoming a party to this Credit
Agreement, in each case subject to Section 9.15.

 

(g)           At the time of each assignment
pursuant to this Section 9.5 to a Person which is not already a Lender
hereunder and which is not a United States person (as such term is defined
in Section 7701(a)(30) of the Code) for Federal income tax purposes, the
respective assignee Lender shall provide to the Borrowers and the
Administrative Agent the appropriate Internal Revenue Service Forms described
in Section 2.19.

 

68

 

(h)           Nothing herein shall prohibit any
Lender from pledging or assigning any of its rights under this Credit Agreement
(including, without limitation, any right to payment of principal and interest
under any Note) to any Federal Reserve Bank in accordance with applicable laws.

 

Section 9.6            Adjustments;
Set-off.

 

(a)           Each Lender agrees that if any Lender
(a “benefited Lender”) shall at any time receive any payment of all or
part of its Loans, or interest thereon, or receive any collateral in respect
thereof (whether voluntarily or involuntarily, by set-off, pursuant to events
or proceedings of the nature referred to in Section 7.1(e), or otherwise)
in a greater proportion than any such payment to or collateral received by any
other Lender, if any, in respect of such other Lender’s Loans, or interest
thereon, such benefited Lender shall purchase for cash from the other Lenders a
participating interest in such portion of each such other Lender’s Loan, or
shall provide such other Lenders with the benefits of any such collateral, or
the proceeds thereof, as shall be necessary to cause such benefited Lender to
share the excess payment or benefits of such collateral or proceeds ratably
with each of the Lenders; provided, however, that if all or any
portion of such excess payment or benefits is thereafter recovered from such
benefited Lender, such purchase shall be rescinded, and the purchase price and
benefits returned, to the extent of such recovery, but without interest.  The Borrowers agree that each Lender so
purchasing a portion of another Lender’s Loans may exercise all rights of
payment (including, without limitation, rights of set-off) with respect to such
portion as fully as if such Lender were the direct holder of such portion.

 

(b)           The Borrowers hereby grant to the
Lenders, a lien, security interest, and right of setoff as security for all
liabilities and obligations to the Lenders, whether now existing or hereafter
arising upon and against all deposits, credits, collateral, and property, now
or hereafter in the possession, custody, safekeeping or control of the Lenders
or any entity under the control of the parent company of any of the Lenders,
and their successors and assigns or in transit to any of them.  At any time after an Event of Default,
without demand or notice, the Lenders may set off the same or any part thereof
and apply the same to any liability or obligation of the Borrowers and any
guarantor even though unmatured and regardless of the adequacy of any other
collateral securing the Loans.  ANY AND
ALL RIGHTS TO REQUIRE THE LENDERS TO EXERCISE THEIR RIGHTS OR REMEDIES WITH
RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE LOANS, PRIOR TO EXERCISING
THEIR RIGHTS OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS, OR OTHER
PROPERTY OF THE BORROWERS, ARE HEREBY KNOWINGLY, VOLUNTARILY, AND IRREVOCABLY
WAIVED.

 

Section 9.7            Table of Contents and Section
Headings.

 

The table of contents and
the Section and subsection headings herein are intended for convenience only
and shall be ignored in construing this Credit Agreement.

 

69

 

Section 9.8            Counterparts.

 

This Credit Agreement may
be executed by one or more of the parties to this Credit Agreement on any
number of separate counterparts, and all of said counterparts taken together
shall be deemed to constitute one and the same instrument.  A set of the copies of this Credit Agreement
signed by all the parties shall be lodged with the Company and the
Administrative Agent.

 

Section 9.9            Effectiveness.

 

This Credit Agreement
shall become effective on the date on which all of the parties have signed a
copy hereof (whether the same or different copies) and shall have delivered the
same to the Administrative Agent pursuant to Section 9.2 or, in the
case of the Lenders, shall have given to the Administrative Agent written,
telecopied or telex notice (actually received) at such office that the same has
been signed and mailed to it.

 

Section 9.10         Severability.

 

Any provision of this
Credit Agreement which is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other
jurisdiction.

 

Section 9.11         Integration.

 

This Credit Agreement and
the other Credit Documents represent the agreement of the Borrowers, the
Administrative Agent and the Lenders with respect to the subject matter hereof,
and there are no promises, undertakings, representations or warranties by the
Administrative Agent, the Borrowers or any Lender relative to the subject
matter hereof not expressly set forth or referred to herein or therein.

 

Section 9.12         Governing
Law.

 

This Credit Agreement
and, unless otherwise specified therein, each other Credit Document and the
rights and obligations of the parties under this Credit Agreement and such
other Credit Documents shall be governed by, and construed and interpreted in
accordance with, the laws of the State of New York applicable to contracts
made and to be performed entirely within such State.

 

Section 9.13         Consent to Jurisdiction and Service
of Process.

 

Each Borrower consents,
for itself and in connection with its properties to the non-exclusive
jurisdiction of the United States District Court for the Southern District of
New York and of any New York State court sitting in New York City for purposes
of all legal

 

70

 

proceedings arising out
of the Credit Agreement, any Note or any of the other Credit Documents.  The Borrowers irrevocably agree that all
service of process in any such proceedings in any such court may be effected by
mailing a copy thereof by registered or certified mail (or any substantially
similar form of mail), postage prepaid, return receipt requested, to it at its
address set forth in Section 9.2 or at such other address of which the
Administrative Agent shall have been notified pursuant thereto, such service
being hereby acknowledged by the Borrowers to be effective and binding service
to the fullest extent permitted by applicable law.  The Borrowers, the Administrative Agent and the Lenders
irrevocably waive, to the fullest extent permitted by applicable law, any
objection, including, without limitation, any objection to the laying of venue
or based on the grounds of forum non conveniens which it may now or hereafter
have to the bringing of any such action or proceeding in any such jurisdiction.  Nothing herein shall affect the right to
serve process in any other manner permitted by law or shall limit the right of
any Lender to bring proceedings against the Borrowers in the court of any other
jurisdiction.

 

Section 9.14         Confidentiality.

 

The Administrative Agent
and each of the Lenders agrees that it will use its best efforts not to
disclose without the prior consent of the Borrowers (other than to its
employees, affiliates, auditors or counsel or to another Lender) any
information (the “Information”) with respect to the Borrowers and the
Company’s Subsidiaries which is furnished pursuant to this Credit Agreement,
any other Credit Document or any documents contemplated by or referred to
herein or therein and which is designated by the Borrowers to the Lenders in
writing as confidential or as to which it is otherwise reasonably clear such
information is not public, except that any Lender may disclose any such
Information (a) as has become generally available to the public other than
by a breach of this Section 9.14, (b) as may be required or
appropriate in any report, statement or testimony submitted to any municipal,
state or federal regulatory body having or claiming to have jurisdiction over
such Lender or to the Federal Reserve Board or the Federal Deposit Insurance
Corporation or the Office of the Comptroller of the Currency or the National
Association of Insurance Commissioners or similar organizations (whether in the
United States or elsewhere) or their successors, (c) as may be required
or appropriate in response to any summons or subpoena or any law, order,
regulation or ruling applicable to such Lender, (d) to (i) any prospective
Participant or assignee in connection with any contemplated transfer pursuant
to Section 9.6 or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to the Company, provided
that such prospective transferee shall have been made aware of this
Section 9.14 and shall have agreed to be bound by its provisions as if it
were a party to this Credit Agreement, (e) to Gold Sheets and other
similar bank trade publications; such information to consist of deal terms and
other information regarding the credit facilities evidenced by this Credit
Agreement customarily found in such publications and (f) in connection with any
suit, action or proceeding for the purpose of defending itself, reducing its
liability, or protecting or exercising any of its claims, rights, remedies or
interests under or in connection with the Credit Documents or any Hedging
Agreement.

 

Section 9.15         Acknowledgments.

 

The Borrowers each hereby
acknowledges that:

 

71

 

(a)           it has been advised by counsel in the
negotiation, execution and delivery of each Credit Document;

 

(b)           neither the Administrative Agent nor
any Lender has any fiduciary relationship with or duty to the Borrowers arising
out of or in connection with this Credit Agreement and the relationship between
the Administrative Agent and Lenders, on one hand, and the Borrowers, on the
other hand, in connection herewith is solely that of debtor and creditor; and

 

(c)           no joint venture exists among the
Lenders or among the Borrowers and the Lenders.

 

Section 9.16         Waivers
of Jury Trial.

 

THE BORROWERS, THE
ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY LEGAL
ACTION OR PROCEEDING RELATING TO THIS CREDIT AGREEMENT OR ANY OTHER CREDIT
DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

Section 9.17         Judgment
Currency.

 

If, for the purposes of obtaining judgment in any
court, it is necessary to convert a sum due hereunder or under any other Credit
Document in one currency into another currency, the rate of exchange used shall
be that at which in accordance with normal banking procedures the
Administrative Agent could purchase the first currency with such other currency
on the Business Day preceding that on which final judgment is given.   The obligation of the Borrowers in respect of
any such sum due from it to the Administrative Agent or any Lender hereunder or
under the other Credit Documents shall, notwithstanding any judgment in a
currency (the “Judgment Currency”) other than that in which such sum is
denominated in accordance with the applicable provisions of this Credit
Agreement (the “Agreement Currency”), be discharged only to the extent
that on the Business Day following receipt by the Administrative Agent or such
Lender of any sum adjudged to be so due in the Judgment Currency, the
Administrative Agent or such Lender may in accordance with normal banking
procedures purchase the Agreement Currency with the Judgment Currency.  If the amount of the Agreement Currency so
purchased is less than the sum originally due to the Administrative Agent or
such Lender in the Agreement Currency, the Borrowers agree, as a separate
obligation and notwithstanding any such judgment, to indemnify the
Administrative Agent or such Lender or the Person to whom such obligation was
owing against such loss.  If the amount
of the Agreement Currency so purchased is greater than the sum originally due
to the Administrative Agent or such Lender in such currency, the Administrative
Agent or such Lender agrees to return the amount of any excess to the Borrowers
(or to any other Person who may be entitled thereto under applicable law).

 

72

 

Section 9.18         USA
Patriot Act Notice.

 

Each Lender and the Administrative Agent (for itself
and not on behalf of any Lender) hereby notifies the Borrowers that pursuant to
the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed
into law October 26, 2001)) (the “Act”), it is required to obtain,
verify and record information that identifies the Borrowers, which information
includes the name and address of the Borrowers and other information that will
allow such Lender or the Administrative Agent, as applicable, to identify the
Borrowers in accordance with Act.

 

Section 9.19                            Joint and Several
Liability; Maximum Liability; Waiver of Subrogation.

 

(a)           The Company shall be liable for all
amounts due to the Lenders under this Agreement, regardless of which Borrower
actually receives the Loans or other Extensions of Credit hereunder, or the
amount of such Loans received or the manner in which any Lender accounts for
such Loans or other Extensions of Credit on its books and records.  The Company’s liability with respect to
Loans and Extensions of Credit made to it or to any Foreign Borrower, as
applicable, and the Company’s liability arising as a result of the joint and
several liability of the Company hereunder and under the other Credit Documents
with respect to Loans or other Extensions of Credit made to any other Borrower
hereunder, shall be separate and distinct obligations, but all such liabilities
shall be primary obligations of the Company. 
The joint and several liability of the Company shall in all respects be
continuing, absolute, unconditional and irrevocable, and shall continue in full
force and effect until all Obligations have been paid in full and all
Commitments shall have terminated, and will be paid strictly in accordance with
the terms of this Credit Agreement and each other Credit Document under which
they arise, regardless of any law, regulation or order now or hereafter in
effect in any jurisdiction affecting any of such terms or the rights of Lender
or any holder of any Note with respect thereto.  The joint and several liability of the Company shall be absolute,
unconditional and irrevocable irrespective of:

 

(i)            any lack of validity, legality or
enforceability of this Agreement, any Note or any other Credit Document;

 

(ii)           the failure of any Lender or any
holder of any Note to assert any claim or demand or to enforce any right or
remedy against any Borrower or any other Person (including any guarantor) under
the provisions of this Agreement, any Note, any other Credit Document or
otherwise, or to exercise any right or remedy against any other guarantor of,
or collateral securing, any Borrower Obligations of any Borrower;

 

(iii)          any change in the time, manner or
place of payment of, or in any other term of, all or any of the Borrower
Obligations of any Borrower, or any other extension, compromise or renewal of
any such liability;

 

(iv)          any reduction, limitation, impairment
or termination of any Borrower of any reason, including any claim of waiver,
release, surrender, alteration or compromise, and shall not be subject to (and
each Borrower hereby waives any right to or claim of) any defense or setoff,
counterclaim, recoupment or termination

 

73

 

whatsoever by reason of
the invalidity, illegality, nongenuineness, irregularity, compromise,
unenforceability of, or any other event or occurrence affecting, any of the
liabilities or otherwise;

 

(v)           any amendment to, rescission, waiver,
or other modification of, or any consent to departure from, any of the terms of
this Credit Agreement, any Note or any other Credit Document;

 

(vi)          any addition, exchange, release,
surrender or non-perfection of any collateral, if any, or any amendment to or
waiver or release or addition of, or consent to departure from, any other
guaranty, if any, held by any Lender or any holder of any Note securing any of
the Borrower Obligations; or

 

(vii)         any other circumstance which might
otherwise constitute a defense available to, or a legal or equitable discharge
of, any Borrower, any surety or any guarantor.

 

(b)  The Company (herein, the “Waiving
Borrower”) hereby agrees that it will not exercise any rights which it may
acquire by reason of any payment made hereunder, whether by way of subrogation,
reimbursement or otherwise, until the prior payment, in full and in cash, of
all Borrower Obligations.  Any amount
paid to the Company on account of any payment made hereunder prior to the
payment in full of all Borrower Obligations shall be held in trust for the
benefit of any Lender and such holder of a Note and shall immediately be paid
to such Lender and such holder of a Note and credited and applied against the
Borrower Obligations of the Waiving Borrower and the other Borrowers, whether
matured or unmatured, in accordance with the terms of this Agreement; provided,
however, that if

 

(1)           the Waiving Borrower has made payment
to such Lender and such holder of a Note of all or any part of the Borrower
Obligations of any other Borrower, and

 

(2)           all Borrower Obligations have been
paid in full and all Commitments have been permanently terminated,

 

each Lender and each holder of a Note agrees that, at
the Waiving Borrower’s request, such Lender and the holders of such Notes will
execute and deliver to the Waiving Borrower appropriate documents (without
recourse and without representation or warranty) necessary to evidence the
transfer by subrogation to the Waiving Borrower of an interest in the Borrower
Obligations of each other Borrower resulting from such payment by the Waiving
Borrower.  In furtherance of the
foregoing, for so long as any Borrower Obligations or Commitments remain outstanding,
the Waiving Borrower shall refrain from taking any action or commencing any
proceeding against any other Borrower (or its successors or assigns, whether in
connection with a bankruptcy proceeding or otherwise) to recover any amounts in
respect of payments made under this Agreement or the other Credit Documents in
respect of Borrower Obligations of any other Borrower to any Lender or any
holder of a Note.  The Company
acknowledges that it will receive direct and indirect benefits from the

 

74

 

financing arrangements contemplated by this Credit
Agreement and that the provisions of this Section are knowingly agreed to in
contemplation of such benefits.

 

75

 

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

 

 

	
  COMPANY:

  	
  IMS HEALTH INCORPORATED,

  
	
   

  	
  a Delaware corporation,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  SWISS

  	
  IMS AG,

  
	
  BORROWER:

  	
  a Swiss  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  JAPANESE

  	
  IMS JAPAN K.K.

  
	
  BORROWER:

  	
  a Japanese  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

	
  ADMINISTRATIVE AGENT

  	
   

  
	
  AND LENDERS:

  	
  WACHOVIA BANK, NATIONAL
  ASSOCIATION,

  
	
   

  	
  as Administrative Agent
  and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

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