Document:

Change in Control Agreement with John A. Skolas

 Exhibit 10.3 
  
 Change In Control Agreement 
  
 THIS CHANGE IN CONTROL AGREEMENT (this “Agreement”) between Genaera Corporation, a Delaware corporation (the
“Company”), and John A. Skolas (the “Employee”) is executed and effective as of August 27, 2004 (the “Effective Date). Certain capitalized terms used herein are defined in Section 21. 
  
 W i t n e s s e
t h: 
  
 WHEREAS, the Company
considers it to be in the best interests of its stockholders to encourage the continued employment of certain key employees of the Company notwithstanding the possibility, threat or occurrence of a Change in Control of the Company; 
  
 WHEREAS, the Employee is a key employee of the Company; 
  
 WHEREAS, the Company believes that the possibility of a Change in Control may
cause the Employee to leave the Company for other opportunities or distract the Employee from performance of his/her duties to the Company, in either case to the detriment of the Company and its stockholders; 
  
 WHEREAS, the Company recognizes that the Employee could suffer adverse
financial and professional consequences if a Change in Control were to occur; and 
  
 WHEREAS, the Company wishes to enter into this Agreement to protect the Employee if a Change in Control occurs, thereby encouraging the Employee to remain in the employ of the Company and not to be distracted from the
performance of his duties to the Company by the possibility of a Change in Control. 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows: 
  
 Section 1. Other Employment Arrangements. 
  
 (a) This Agreement does not affect the Employee’s existing or future
employment arrangements with the Company unless a Change in Control shall have occurred before the expiration of the term of this Agreement. The Employee’s employment with the Company shall continue to be governed by the Employee’s
existing or future employment agreements with the Company, if any, or, in the absence of any employment agreement, shall continue to be at the will of the Board of Directors or, if the Employee is not an officer of the Company at the time of the
termination of the Employee’s employment with the Company, the will of the Chief Executive Officer of the Company, except that if (i) a Change in Control shall have occurred before the expiration of the term of this Agreement and (ii) the
Employee’s employment with the Company is terminated (whether by the Employee or the Company or automatically as provided in Section 3) after the occurrence of such Change in Control, then the Employee shall be entitled to receive certain
benefits as provided in this Agreement. 

 (b) Notwithstanding anything contained in this Agreement to the contrary, if following the commencement
of any discussions with any person that ultimately results in a Change in Control, (i) the Employee’s employment with the Company is terminated, (ii) the Employee is removed from any material duties or position with the Company or (iii) the
Employee’s Base Salary is reduced, then for all purposes of this Agreement, such Change in Control shall be deemed to have occurred on the date immediately prior to the date of such termination, removal or reduction. 
  
 (c) Nothing in this Agreement shall prevent or limit the Employee’s
continuing or future participation in any plan, program, policy or practice of or provided by the Company or any of its Affiliates and for which the Employee may qualify, nor shall anything herein limit or otherwise affect such rights as the
Employee may have under any contract or agreement with the Company or any of its Affiliates. Amounts which are vested benefits or which the Employee is otherwise entitled to receive under any plan, program, policy or practice of or provided by, or
any contract or agreement with, the Company or any of its Affiliates at or subsequent to the date of termination of the Employee’s employment with the Company shall be payable of otherwise provided in accordance with such plan, program, policy
or practice or contract or agreement except as explicitly modified by this Agreement 
  
 Section 2. Change in Control of the Company. A “Change in Control” shall have occurred if, after the Effective Date: 
  
 (i) Any “person” (as such term is used in sections 13(d) and 14(d) of the Exchange Act) is or
becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 40% or more of the voting power of the then outstanding securities of the Company;

  
 (ii) During any period of two consecutive
calendar years there is a change of 25% or more in the composition of the Board of the Company in office at the beginning of the period except for changes approved by at least two-thirds of the Directors then in office who were Directors at the
beginning of the period; 
  
 (iii) The
stockholders of the Company approve an agreement providing for (A) the merger or consolidation of the Company with another corporation where the stockholders of the Company, immediately prior to the merger or consolidation, will not beneficially
own, immediately after the merger or consolidation, shares entitling such stockholders to 50% or more of all votes (without consideration of the rights of any class of stock to elect Directors by a separate class vote) to which all stockholders of
the corporation issuing cash or securities in the merger or consolidation would be entitled in the election of directors, or where the members of the Board, immediately prior to the merger or 
  

 -2- 

 consolidation, would not, immediately after the merger or consolidation, constitute a majority of the
Board of Directors of the corporation issuing cash or securities in the merger or consolidation, or (B) the sale or other disposition of all or substantially all of the assets of the Company, or a liquidation, dissolution or statutory exchange of
the Company; or 
  
 (iv) Any person has
commenced, or announced an intention to commence, a tender offer or exchange offer for 40% or more of the voting power of the then-outstanding securities of the Company. 
  
 Section 3. Term of this Agreement. The term of this Agreement shall begin on the Effective Date and shall
expire on the first to occur of: 
  
 (i) the
Employee’s death, the Employee’s Disability or the Employee’s Retirement, which events shall also be deemed automatically to terminate the Employee’s employment by the Company; or 
  
 (ii) the termination by the Employee or the Company of the
Employee’s employment by the Company. 
  
 The expiration of the term of this
Agreement shall not terminate this Agreement itself or affect the right of the Employee or the Employee’s legal representatives to enforce the payment of any amount or other benefit to which the Employee was entitled before the expiration of
the term of this Agreement or to which the Employee became entitled as a result of the event (including the termination, whether by the Employee or the Company or automatically as provided in this Section 3, of the Employee’s employment by the
Company) that caused the term of this Agreement to expire. 
  
 Section 4. Event of Termination for Cause. An “Event of Termination for Cause” shall have occurred if, after a Change in Control, the Employee shall have committed: 
  
 (i) gross negligence or willful misconduct in connection
with his duties or in the course of his employment with the Company; 
  
 (ii) an act of fraud, embezzlement or theft in connection with his duties or in the course of his employment with the Company; 
  

(iii) intentional wrongful damage to property of the Company; 
  
 (iv) intentional wrongful disclosure of secret processes or confidential information of the Company; or

  
 (v) an act leading to a conviction of a
felony or a misdemeanor involving moral turpitude. 
  

 -3- 

 For purposes of this Agreement, no act, or failure to act, on the part of the Employee shall be deemed
“intentional” if it was due primarily to an error in judgment or negligence, but shall be deemed “intentional” only if done, or omitted to be done, by the Employee not in good faith and without reasonable belief that his action
or omission was in the best interest of the Company. Notwithstanding the foregoing, the Employee shall not be deemed to have been terminated as a result of an “Event of Termination for Cause” hereunder unless and until there shall have
been delivered to the Employee a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the Board of Directors then in office at a meeting of the Board of Directors called and held for such purpose (after
reasonable notice to the Employee and an opportunity for the Employee, together with his counsel, to be heard before the Board of Directors), finding that, in the good faith opinion of the Board of Directors, the Employee had committed an act set
forth above in this Section 4 and specifying the particulars thereof in detail. Nothing herein shall limit the right of the Employee or his legal representatives to contest the validity or propriety of any such determination provided that if the
membership of the Board of has not changed in the manner described in Section 2. (ii) as of the date of said Board of Directors’ meeting, then the finding of the Board of Directors shall be final and not subject to contest. 
  
 Section 5. An Event of Termination for Good Reason. An
“Event of Termination for Good Reason” shall have occurred if after a Change in Control, the Company shall: 
  
 (i) assign to the Employee any duties inconsistent with the Employee’s position (including offices, titles and reporting
requirements), authority, duties or responsibilities with the Company in effect immediately before the occurrence of the first Change in Control or otherwise make any change in any such position, authority, duties or responsibilities; 
  
 (ii) remove the Employee from, or fail to re-elect or
appoint the Employee to, any duties or position with the Company or any of its Affiliates that were assigned or held by the Employee immediately before the occurrence of the first Change in Control, except that a nominal change in the
Employee’s title that is merely descriptive and does not affect rank or status shall not constitute such an event; 
  
 (iii) take any other action that results in a material diminution in such position, authority, duties or responsibilities or otherwise
take any action that materially interferes therewith; 
  
 (iv) reduce the Employee’s annual base salary as in effect immediately before the occurrence of the first Change in Control or as the Employee’s annual base salary may be increased from time to time after that occurrence (the
“Base Salary”); 
  
 (v) relocate the
Employee’s principal office outside of the metropolitan area of Philadelphia, Pennsylvania; 
  

 -4- 

 (vi) fail to (x) continue in effect any bonus, incentive, profit sharing, performance,
savings, retirement or pension policy, plan, program or arrangement (such policies, plans, programs and arrangements collectively being referred to herein as “Basic Benefit Plans”), including, but not limited to, any deferred compensation,
supplemental executive retirement or other retirement income, stock option, stock purchase, stock appreciation, or similar policy, plan, program or arrangement of the Company, in which the Employee was a participant immediately before the occurrence
of the first Change in Control, or any substitute plan adopted by the Board of Directors and in which the Employee was a participant immediately before the occurrence of the last Change in Control, unless an equitable and reasonably comparable
arrangement (embodied in a substitute or alternative benefit or plan) shall have been made with respect to such Basic Benefit Plan promptly following the occurrence of the last Change in Control, or (y) continue the Employee’s participation in
any Basic Benefit Plan (or any substitute or alternative plan) on substantially the same basis, both in terms of the amount of benefits provided to the Employee (which are in any event always subject to the terms of any applicable Basic Benefit
Plan) and the level of the Employee’s participation relative to other participants, as existed immediately before the occurrence of the first Change in Control; 
  
 (vii) fail to continue to provide the Employee with benefits substantially similar to those enjoyed by the
Employee under any of the Company’s other employee benefit plans, policies, programs and arrangements (the “Other Benefit Plans”), including, but not limited to, life insurance, medical, dental, health, hospital, accident or
disability plans, in which the Employee was a participant immediately before the occurrence of the first Change in Control; 
  
 (viii) take any action that would directly or indirectly materially reduce any other non-contractual benefits that were provided to the
Employee by the Company immediately before the occurrence of the first Change in Control or deprive the Employee of any material fringe benefit enjoyed by the Employee immediately before the occurrence of the first Change in Control; 
  
 (ix) fail to provide the Employee with the number of paid
vacation days to which the Employee was entitled in accordance with the Company’s vacation policy in effect immediately before the occurrence of the first Change in Control; 
  
 (x) fail to continue to provide Employee with office space, related facilities and support personnel
(including, but not limited to, administrative and secretarial assistance) (y) that are both commensurate with Employee’s responsibilities to and position with the Company immediately before the occurrence of the first Change in Control and not
materially dissimilar to the office space, related facilities and support personnel provided to other employees of the Company having comparable responsibility to the Employee, or (z) that are physically located at the Company’s principal
executive offices; 
  

 -5- 

 (xi) require the Employee to perform a majority of his duties outside the Company’s
principal executive offices for a period of more than 21 consecutive days or for more than 90 days in any calendar year; 
  
 (xii) fail to honor any provision of any employment agreement Employee has or may in the future have with the Company or fail to honor any
provision of this Agreement; 
  
 (xiii) give
effective notice of an election to terminate at the end of the term or extended the term of any employment agreement Employee has or may in the future have with the Company in accordance with the terms of any such agreement; or 
  
 (xiv) purport to terminate the Employee’s employment by
the Company unless notice of that termination shall have been given to the Employee pursuant to, and that notice shall meet the requirements of, Section 6. 
  
 Section 6. Notice of Termination. If a Change in Control shall have occurred before the expiration of the term of this Agreement, any
subsequent termination by the Employee or the Company of the Employee’s employment by the Company, or any determination of the Employee’s Disability, shall be communicated by notice to the other party that shall indicate the specific
paragraph of Section 7 pursuant to which the Employee is to receive benefits as a result of the termination. If the notice states that the Employee’s employment by the Company has been automatically terminated as a result of the Employee’s
Disability, the notice shall (i) specifically describe the basis for the determination of the Employee’s Disability, and (ii) state the date of the determination of the Employee’s Disability, which date shall be not more than ten days
before the date such notice is given. If the notice is from the Company and states that the Employee’s employment by the Company is terminated by the Company as a result of the occurrence of an Event of Termination for Cause, the notice shall
specifically describe the action or inaction of the Employee that the Company believes constitutes an Event of Termination for Cause and shall be accompanied by a copy of the resolution satisfying Section 4. If the notice is from the Employee and
states that the Employee’s employment by the Company is terminated by the Employee as a result of the occurrence of an Event of Termination for Good Reason, the notice shall specifically describe the action or inaction of the Company that the
Employee believes constitutes an Event of Termination for Good Reason. Each notice given pursuant to this Section 6 (other than a notice stating that the Employee’s employment by the Company has been automatically terminated as a result of the
Employee’s Disability) shall state a date, which shall be not fewer than 30 days nor more than 60 days after the date such notice is given, on which the termination of the Employee’s employment by the Company is effective. The date so
stated in accordance with this Section 6 shall be the “Termination Date”. If a Change in Control shall have occurred before the expiration of the term of this Agreement, any subsequent 
  

 -6- 

 purported termination by the Company of the Employee’s employment by the Company, or any subsequent purported
determination by the Company of the Employee’s Disability, shall be ineffective unless that termination or determination shall have been communicated by the Company to the Employee by notice that meets the requirements of the foregoing
provisions of this Section 6 and the provisions of Section 9. 
  
 Section 7. Benefits Payable on Change in Control and Termination. 
  
 (a) If (x) a Change in Control shall have occurred before the expiration of the term of this Agreement, and (y) the Employee’s employment by the Company is terminated (whether by the Employee or the Company or
automatically as provided in Section 3) after the occurrence of that Change in Control, the Employee shall be entitled to the following benefits: 
  
 (i) If the Employee’s employment by the Company is terminated (x) by the Company as a result of the occurrence of an Event of
Termination for Cause, or (y) by the Employee before the occurrence of an Event of Termination for Good Reason, then the Company shall pay to the Employee the Base Salary accrued through the Termination Date but not previously paid to the Employee,
and the Employee shall be entitled to any other amounts or benefits provided under any plan, policy, practice, program, contract or arrangement of or with the Company, including, but not limited to, the Basic Benefit Plans and the Other Benefit
Plans, which shall be governed by the terms thereof (except as explicitly modified by this Agreement). 
  
 (ii) If the Employee’s employment by the Company is automatically terminated as a result of the Employee’s death, the
Employee’s Disability or the Employee’s Retirement, then (x) the Company shall pay to the Employee the Base Salary accrued through the date of the occurrence of that event but not previously paid to the Employee, and (y) the Employee shall
be entitled to any other amounts or benefits provided under any plan, policy, practice, program, contract or arrangement of or with the Company, including, but not limited to, the Basic Benefit Plans and the Other Benefit Plans, which shall be
governed by the terms thereof (except as explicitly modified by this Agreement). 
  
 (iii) If the Employee’s employment by the Company is terminated (x) by the Company otherwise than as a result of the occurrence of an
Event of Termination for Cause, or (y) by the Employee after the occurrence of an Event of Termination for Good Reason, then the Employee shall be entitled to the following: 
  
 (1) the Company shall pay to the Employee the Base Salary and compensation for earned but unused vacation
time accrued through the Termination Date but not previously paid to the Employee; 
  

 -7- 

 (2) the Company shall pay to the Employee an amount equal to the product of (A) the
highest aggregate annual bonus, incentive or other payment of cash compensation in addition to annual base salary pursuant to any bonus, incentive, profit-sharing performance, discretionary pay or similar policy, plan, program or arrangement of the
Company paid or payable to the Employee (including any deferred portion thereof) for any fiscal year (or portion thereof) of the Company ending within three years of the Termination Date (the “Highest Bonus”), and (B) a fraction, the
numerator of which is the number of days in the current fiscal year of the Company through the Date of Termination and the denominator of which is 365; 
  
 (3) the Company shall pay to the Employee, as a lump sum, an amount (the “Severance Payment”) equal to two (2) times the sum
of: 
  
 (A) the amount (including any deferred
portion thereof) of the Base Salary that would have been paid to the Employee during the fiscal year of the Company in which the Termination Date occurs based on the assumption that the Employee’s employment by the Company had continued
throughout that fiscal year at the Base Salary at the highest rate in effect at any time during the term of this Agreement; plus 
  
 (B) the amount of the Highest Bonus; 
  
 (4) the Company (at its sole expense) shall take the following actions: 
  
 (A) throughout the Relevant Period, the Company shall maintain in effect, and not materially reduce the
benefits provided by, each of the Other Benefit Plans in which the Employee was a participant immediately before the Termination Date; and 
  
 (B) the Company shall arrange for the Employee’s uninterrupted participation throughout the Relevant Period in each of such Other
Benefit Plans, 
  
 provided that if the Employee’s
participation after the Termination Date in any such Other Benefit Plan is not permitted by the terms of that Other Benefit Plan, then throughout the Relevant Period, the Company (at its sole expense) shall provide the Employee with substantially
the same benefits that were provided to the Employee by that Other Benefit Plan immediately before the Termination Date; and 
  

 -8- 

 (5) the Employee shall be entitled to any other amounts or benefits provided under any
plan, policy, practice, program, contract or arrangement of or with the Company, including, but not limited to, the Basic Benefit Plans and the Other Benefit Plans, which shall be governed by the terms thereof (except as explicitly modified by this
Agreement). 
  
 (b) Each payment required to be made to the
Employee pursuant to the foregoing provisions of this Section 7(a) above (i) shall be made by check drawn on an account of the Company at a bank located in the United States of America, and (ii) shall be paid (x) if the Employee’s employment by
the Company was terminated as a result of the Employee’s death, the Employee’s Disability or the Employee’s Retirement, not more than 30 days immediately following the date of the occurrence of that event, and (y) if the
Employee’s employment by the Company was terminated for any other reason, not more than ten days immediately following the Termination Date. 
  
 Section 8. Successors. If a Change in Control shall have occurred before the expiration of the term of this Agreement, 
  
 (i) the Company shall not, directly or indirectly,
consolidate with, merge into or sell or otherwise transfer its assets as an entirety or substantially as an entirety to, any person, or permit any person to consolidate with or merge into the Company, unless immediately after such consolidation,
merger, sale or transfer, the Successor shall have assumed in writing the Company’s obligations under this Agreement; and 
  
 (ii) not fewer than ten days before the consummation of any consolidation of the Company with, merger by the Company into, or sale or
other transfer by the Company of its assets as an entirety or substantially as an entirety to, any person, the Company shall give the Employee notice of that proposed transaction. 
  
 Section 9. Notice. Notices required or permitted to be given by either party pursuant to this Agreement shall
be in writing and shall be deemed to have been given when delivered personally to the other party or when deposited with the United States Postal Service as certified or registered mail with postage prepaid and addressed: 
  
 (i) if to the Employee, at the Employee’s address last
shown on the Company’s records, and 
  
 (ii)
if to the Company, Genaera Corporation, 5110 Campus Drive, Plymouth Meeting, Pennsylvania 19462, directed to the attention of the Company’s President. 
  

 -9- 

 or, in either case, to such other address as the party to whom or which such notice is to be given shall have specified
by notice given to the other party. 
  
 Section 10.
Withholding Taxes. The Company may withhold from all payments to be paid to the Employee pursuant to this Agreement all taxes that, by applicable federal or state law, the Company is required to so withhold. 
  
 Section 11. Certain Additional Payments by the Company.

  
 (a) Anything in this Agreement to the contrary
notwithstanding in the event it shall be determined that any payment or distribution by, or benefit from, the Company or any of its Affiliates to or for the benefit of the Employee, whether paid or payable or distributed or distributable pursuant to
the terms of this Agreement or otherwise (any such payments, distributions or benefits being individually referred to herein as a “Payment,” and any two or more of such payments, distributions or benefits being referred to herein as
“Payments”), would be subject to the excise tax imposed by Section 4999 of the Code (such excise tax, together with any interest thereon, any penalties, additions to tax, or additional amounts with respect to such excise tax, and any
interest in respect of such penalties, additions to tax or additional amounts, being collectively referred herein to as the “Excise Tax”), then the Employee shall be entitled to receive an additional payment or payments (individually
referred to herein as a “Gross-Up Payment” and any two or more of such additional payments being referred to herein as “Gross-Up Payments”) in an amount such that after payment by the Employee of all taxes (as defined in Section
11(k)) imposed upon the Gross-Up Payment, the Employee retains an amount of such Gross-Up Payment equal to the Excise Tax imposed upon the Payments. 
  
 (b) Subject to the provisions of Section 11(c) through (i), any determination (individually, a “Determination”) required to be made under this
Section 11(b), including whether a Gross-Up Payment is required and the amount of such Gross-Up Payment, shall initially be made, at the Company’s expense, by nationally recognized tax counsel mutually acceptable to the Company and the Employee
(“Tax Counsel”). Tax Counsel shall provide detailed supporting legal authorities, calculations, and documentation both to the Company and the Employee within 15 business days of the termination of the Employee’s employment, if
applicable, or such other time or times as is reasonably requested by the Company or the Employee. If Tax Counsel makes the initial Determination that no Excise Tax is payable by the Employee with respect to a Payment or Payments, it shall furnish
the Employee with an opinion reasonably acceptable to the Employee that no Excise Tax will be imposed with respect to any such Payment or Payments. The Employee shall have the right to dispute any Determination (a “Dispute”) within 15
business days after delivery of Tax Counsel’s opinion with respect to such Determination. The Gross-Up Payment, if any, as determined pursuant to such Determination shall, at the Company’s expense, be paid by the Company to the Employee
within five business days of the Employee’s receipt of such Determination. The existence of a Dispute shall not in any way affect the Employee’s right to receive the Gross-Up Payment in accordance with such Determination. If there is no
Dispute, such Determination shall be binding, final and conclusive upon the Company and the Employee, subject in all respects, however, to the provisions of Section 11(c) through (i) below. As a result of the 
  

 -10- 

 uncertainty in the application of Sections 4999 and 280G of the Code, it is possible that Gross-Up Payments (or portions
thereof) which will not have been made by the Company should have been made (“Underpayment”), and if upon any reasonable written request from the Employee or the Company to Tax Counsel, or upon Tax Counsel’s own initiative, Tax
Counsel, at the Company’s expense, thereafter determines that the Employee is required to make a payment of any Excise Tax or any additional Excise Tax, as the case may be, Tax Counsel shall, at the Company’s expense, determine the amount
of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to the Employee. 
  
 (c) The Company shall defend, hold harmless, and indemnify the Employee on a fully grossed-up after tax basis from and against any and all claims, losses,
liabilities, obligations, damages, impositions, assessments, demands, judgments, settlements, costs and expenses (including reasonable attorneys’, accountants’, and experts’ fees and expenses) with respect to any tax liability of the
Employee resulting from any Final Determination (as defined in Section 11(j)) that any Payment is subject to the Excise Tax 
  
 (d) If a party hereto receives any written or oral communication with respect to any question, adjustment, assessment or pending or threatened audit,
examination, investigation or administrative, court or other proceeding which, if pursued successfully, could result in or give rise to a claim by the Employee against the Company under this Section 11 (“Claim”), including, but not limited
to, a claim for indemnification of the Employee by the Company under Section 11(c), then such party shall promptly notify the other party hereto in writing of such Claim (“Tax Claim Notice”). 
  
 (e) If a Claim is asserted against the Employee (“Employee Claim”),
the Employee shall take or cause to be taken such action in connection with contesting such Employee Claim as the Company shall reasonably request in writing from time to time, including the retention of counsel and experts as are reasonably
designated by the Company (it being understood and agreed by the parties hereto that the terms of any such retention shall expressly provide that the Company shall be solely responsible for the payment of any and all fees and disbursements of such
counsel and any experts) and the execution of powers of attorney, provided that: 
  
 (i) within 30 calendar days after the Company receives or delivers, as the case may be, the Tax Claim Notice relating to such Employee
Claim (or such earlier date that any payment of the taxes claimed is due from the Employee, but in no event sooner than five calendar days after the Company receives or delivers such Tax Claim Notice), the Company shall have notified the Employee in
writing (“Election Notice”) that the Company does not dispute its obligations (including, but not limited to, its indemnity obligations) under this Agreement and that the Company elects to contest, and to control the defense or prosecution
of such Employee Claim at the Company’s sole risk and sole cost and expense; and 
  
 (ii) the Company shall have advanced to the Employee on an interest-free basis, the total amount of the tax claimed in order for the
Employee, at the 
  

 -11- 

 Company’s request, to pay or cause to be paid the tax claimed, file a claim for refund of such tax
and, subject to the provisions of the last sentence of Section 11(g), sue for a refund of such tax if such claim for refund is disallowed by the appropriate taxing authority (it being understood and agreed by the parties hereto that the Company
shall only be entitled to sue for a refund and the Company shall not be entitled to initiate any proceeding in, for example, United States Tax Court) and shall indemnify and hold the Employee harmless, on a fully grossed-up after tax basis, from any
tax imposed with respect to such advance or with respect to any imputed income with respect to such advance; and 
  
 (iii) the Company shall reimburse the Employee for any and all costs and expenses resulting from any such request by the Company and shall
indemnify and hold the Employee harmless, on fully grossed-up after-tax basis, from any tax imposed as a result of such reimbursement. 
  
 (f) Subject to the provisions of Section 11(e) hereof; the Company shall have the right to defend or prosecute, at the sole cost, expense and risk of the
Company, such Employee Claim by all appropriate proceedings, which proceedings shall be defended or prosecuted diligently by the Company to a Final Determination; provided however, that (i) the Company shall not, without the
Employee’s prior written consent, enter into any compromise or settlement of such Employee Claim that would adversely affect the Employee, (ii) any request from the Company to the Employee regarding any extension of the statute of limitations
relating to assessment, payment, or collection of taxes for the taxable year of the Employee with respect to which the contested issues involved in, and amount of the Employee Claim relate is limited solely to such contested issues and amount, and
(iii) the Company’s control of any contest or proceeding shall be limited to issues with respect to the Employee Claim and the Employee shall be entitled to settle or contest, in his sole and absolute discretion, any other issue raised by the
Internal Revenue Service or any other taxing authority. So long as the Company is diligently defending or prosecuting such Employee Claim, the Employee shall provide or cause to be provided to the Company any information reasonably requested by the
Company that relates to such Employee Claim, and shall otherwise cooperate with the Company and its representatives in good faith in order to contest effectively such Employee Claim. The Company shall keep the Employee informed of all developments
and events relating to any such Employee Claim (including, without limitation, providing to the Employee copies of all written materials pertaining to any such Employee Claim), and the Employee or his authorized representatives shall be entitled, at
the Employee’s expense, to participate in all conferences, meetings and proceedings relating to any such Employee Claim. 
  
 (g) If, after actual receipt by the Employee of an amount of a tax claimed (pursuant to an Employee Claim) that has been advanced by the Company pursuant
to Section 11(e)(ii) hereof the extent of the liability of the Company hereunder with respect to such tax claimed has been established by a Final Determination, the Employee shall promptly pay or cause to be paid to the Company any refund actually
received by, or actually credited to, the Employee with respect to such tax (together with any interest paid or credited thereon by the taxing authority and any recovery of legal fees from such taxing authority related thereto), except to the extent
that any 
  

 -12- 

 amounts are then due and payable by the Company to the Employee, whether under the provisions of this Agreement or
otherwise. If, after the receipt by the Employee of an amount advanced by the Company pursuant to Section 11(e)(ii), a determination is made by the Internal Revenue Service or other appropriate taxing authority that the Employee shall not be
entitled to any refund with respect to such tax claimed and the Company does not notify the Employee in writing of its intent to contest such denial of refund prior to the expiration of 30 calendar days after such determination, then such advance
shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of any Gross-Up Payments and other payments required to be paid hereunder. 
  
 (h) With respect to any Employee Claim, if the Company fails to deliver an
Election Notice to the Employee within the period provided in Section 11(e)(i) hereof or, after delivery of such Election Notice, the Company fails to comply with the provisions of Section 11(e)(ii) and (iii) and (f) hereof, then the Employee shall
at any time thereafter have the right (but not the obligation), at his election and in his sole and absolute discretion, to defend or prosecute, at the sole cost, expense and risk of the Company, such Employee Claim. The Employee shall have full
control of such defense or prosecution and such proceedings, including any settlement or compromise thereof. If requested by the Employee, the Company shall cooperate, and shall cause its Affiliates to cooperate, in good faith with the Employee and
his authorized representatives in order to contest effectively such Employee Claim. The Company may attend, but not participate in or control, any defense, prosecution, settlement or compromise of any Employee Claim controlled by the Employee
pursuant to this Section 11(h) and shall bear its own costs and expenses with respect thereto. In the case of any Employee Claim that is defended or prosecuted by the Employee, the Employee shall, from time to time, be entitled to current payment,
on a fully grossed-up after tax basis, from the Company with respect to costs and expenses incurred by the Employee in connection with such defense or prosecution. 
  
 (i) In the case of any Employee Claim that is defended or prosecuted to a Final Determination pursuant to the terms of this
Section 11(i), the Company shall pay, on a fully grossed-up after tax basis, to the Employee in immediately available funds the full amount of any taxes arising or resulting from or incurred in connection with such Employee Claim that have not
theretofore been paid by the Company to the Employee, together with the costs and expenses, on a folly grossed-up after tax basis, incurred in connection therewith that have not theretofore been paid by the Company to the Employee, within ten
calendar days after such Final Determination. In the case of any Employee Claim not covered by the preceding sentence, the Company shall pay, on a fully grossed-up after tax basis, to the Employee in immediately available funds the full amount of
any taxes arising or resulting from or incurred in connection with such Employee Claim at least ten calendar days before the date payment of such taxes is due from the Employee, except where payment of such taxes is sooner required under the
provisions of this Section 11(i), in which case payment of such taxes (and payment, on a fully grossed-up after tax basis, of any costs and expenses required to be paid under this Section 11(i) shall be made within the time and in the manner
otherwise provided in this Section 11(i). 
  

 -13- 

 (j) For purposes of this Agreement, the term “Final Determination” shall mean (A) a decision,
judgment, decree or other order by a court or other tribunal with appropriate jurisdiction, which has become final and non-appealable; (B) a final and binding settlement or compromise with an administrative agency with appropriate jurisdiction,
including, but not limited to, a closing agreement under Section 7121 of the Code; (C) any disallowance of a claim for refund or credit in respect to an overpayment of tax unless a suit is filed on a timely basis; or (D) any final disposition by
reason of the expiration of all applicable statutes of limitations. 
  
 (k) For purposes of this Agreement, the terms “tax” and “taxes” mean any and all taxes of any kind whatsoever (including, but not limited to, any and all Excise Taxes, income taxes, and employment taxes), together with
any interest thereon, any penalties, additions to tax, or additional amounts with respect to such taxes and any interest in respect of such penalties, additions to tax, or additional amounts. 
  
 Section 12. Expenses of Enforcement. If a Change in Control
shall have occurred before the expiration of the term of this Agreement, then, upon demand by the Employee made to the Company, the Company shall reimburse the Employee for the reasonable expenses (including attorneys’ fees and expenses)
incurred by the Employee in enforcing or seeking to enforce the payment of any amount or other benefit to which the Employee shall have become entitled pursuant to this Agreement, including those incurred in connection with any arbitration initiated
pursuant to Section 20. To the extent that any such reimbursement would be subject to the Excise Tax, then the Employee shall be entitled to receive Gross-Up Payments in an amount such that alter payment by the Employee of all taxes imposed on such
Gross-Up Payments, the Employee retains an amount equal to the Excise Tax imposed upon the reimbursement, and the other provisions of Section 11 hereof shall also apply to such circumstance unless the context thereof otherwise indicates. 

 
 Section 13. Employment by Wholly Owned Entities. If, at or
after the Effective Date, the Employee is or becomes an employee of one or more corporations, partnerships, limited liability companies or other entities that are, directly or indirectly, wholly owned by the Company (“Wholly Owned
Entities”), references in this Agreement to the Employee’s employment by the Company shall include the Employee’s employment by any such Wholly Owned Entity. 
  
 Section 14. No Obligation to Mitigate; No Rights of Offset. 
  
 (a) The Employee shall not be required to mitigate the amount of any payment
or other benefit required to be paid to the Employee pursuant to this Agreement, whether by seeking other employment or otherwise, nor shall the amount of any such payment or other benefit be reduced on account of any compensation earned by the
Employee as a result of employment by another person. 
  
 (b) The
Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the
Company may have against the Employee or others. 
  

 -14- 

 Section 15. Amendment and Waiver. No provision of this Agreement may be amended or waived
(whether by act or course of conduct or omission or otherwise) unless that amendment or waiver is by written instrument signed by the parties hereto. No waiver by either party of any breach of this Agreement shall be deemed a waiver of any other or
subsequent breach. 
  
 Section 16. Governing Law.
The validity, interpretation, construction and enforceability of this Agreement shall be governed by the laws of the State of Delaware. 
  
 Section 17. Validity. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement, which shall remain in full force and effect. 
  
 Section 18. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together will constitute the same instrument. 
  
 Section 19. Assignment. This Agreement shall inure to the
benefit of and be enforceable by the Employee’s legal representative. The Company may not assign any of its obligations under this Agreement unless (i) such assignment is to a Successor and (ii) the requirements of Section 8 are fulfilled.

  
 Section 20. Arbitration. Except as otherwise
explicitly provided in Section 11, any dispute between the parties arising out of this Agreement, whether as to this Agreement’s construction, interpretation or enforceability or as to any party’s breach or alleged breach of any provision
of this Agreement, shall be submitted to arbitration in accordance with the following procedures: 
  
 (i) Either party may demand such arbitration by giving notice of that demand to the other party. The notice shall state (x) the matter in
controversy, and (y) the name of the arbitrator selected by the party giving the notice. 
  
 (ii) Not more than 15 calendar days after such notice is given, the other party shall give notice to the party who demanded arbitration of
the name of the arbitrator selected by the other party. If the other patty shall fail to timely give such notice, the arbitrator that the other party was entitled to select shall be named by the Arbitration Committee of the American Arbitration
Association. Not more than 15 calendar days after the second arbitrator is so named, the two arbitrators shall select a third arbitrator. If the two arbitrators shall fail to timely select a third arbitrator, the third arbitrator shall be named by
the Arbitration Committee of the American Arbitration Association. 
  

 -15- 

 (iii) The dispute shall be arbitrated at a hearing that shall be concluded within ten
days immediately following the date the dispute is submitted to arbitration unless a majority of the arbitrators shall elect to extend the period of arbitration. Any award made by a majority of the arbitrators (x) shall be made within ten days
following the conclusion of the arbitration hearing, (y) shall be conclusive and binding on the parties and (z) may be made the subject of a judgment of any court having jurisdiction. 
  
 (iv) All expenses of the arbitration shall be borne by the Company. 
  
 The agreement of the patties contained in the foregoing provisions of this Section 20 shall
be a complete defense to any action, suit or other proceeding instituted in any court or before any administrative tribunal with respect to any dispute between the parties arising out of this Agreement 
  
 Section 21. Interpretation. 
  
 (a) As used in this Agreement, the following terms and phrases have the
indicated meanings: 
  
 (i) “Affiliate”
and “Affiliates” mean, when used with respect to any entity, individual, or other person, any other entity, individual, or other person which, directly or indirectly, through one or more intermediaries controls, or is controlled by, or is
under common control with such entity, individual or person. 
  
 (ii) “Base Salary” has the meaning assigned to that term in Section 5. 
  
 (iii) “Basic Benefit Plans” has the meaning assigned to that term in Section 5. 
  
 (iv) “Board of Directors” means the Board of
Directors of the Company. 
  
 (v) “Change in
Control” has the meaning assigned to that phrase in Section 2. 
  
 (vi) “Claim” has the meaning assigned to such term in Section 11. 
  
 (vii) “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
  
 (viii) “Commission” means the United States
Securities and Exchange Commission or any successor agency. 
  

 -16- 

 (ix) “Company” has the meaning assigned to that term in the preamble to this
Agreement. The term “Company” shall also include any Successor, whether the liability of such Successor under this Agreement is established by contract or occurs by operation of law. 
  
 (x) “Determination” has the meaning assigned to
that term in Section 11. 
  
 (xi)
“Dispute” has the meaning assigned to that term in Section 11. 
  
 (xii) “Effective Date” has the meaning assigned to that term in the preamble to this Agreement. 
  
 (xiii) “Election Notice” has the meaning assigned to such term in Section 11. 
  
 (xiv) “Employee” has the meaning assigned to such
term in the preamble to this Agreement. 
  
 (xv)
“Employee Claim” has the meaning assigned to such term in Section 11. 
  
 (xvi) “Employee’s Disability” means: 
  
 (A) if no Change in Control shall have occurred before the date of determination, the physical or mental
disability of the Employee determined in accordance with the disability policy of the Company at the time in effect and generally applicable to its salaried employees; and 
  
 (B) If a Change in Control shall have occurred at that date, the physical or mental disability of the
Employee determined in accordance with the disability policy of the Company in effect immediately before the occurrence of the first Change in Control and generally applicable to its salaried employees. 
  
 The Employee’s Disability, and the automatic termination of the
Employee’s employment by the Company by reason of the Employee’s Disability, shall be deemed to have occurred on the date of determination, provided that if (1) a Change in Control shall have occurred before the expiration of the
term of this Agreement, (2) the Company shall have subsequently given notice pursuant to Section 6 of the Company’s determination of the Employee’s Disability and (3) the Employee shall have given notice to the Company that the Employee
disagrees with that determination, then (A) whether the Employee’s Disability shall have occurred shall be submitted to arbitration pursuant to Section 20, and (B) if a majority of the arbitrators decide that the Employee’s Disability had
not occurred, at the date of determination by the Company, then (I) the Employee’s 
  

 -17- 

 Disability, and the automatic termination of the Employee’s employment by the Company by reason of
the Employee’s Disability, shall be deemed not to have occurred, and (II) on demand by the Employee made to the Company, the Company shall reimburse the Employee for the reasonable expenses (including attorneys’ fees and expenses) incurred
by the Employee in obtaining that decision. 
  
 (xvii) “Employee’s Retirement” means (x) if no Change in Control shall have occurred before the date of the Employee’s proposed retirement, the retirement of the Employee in accordance with the retirement policy of the
Company at the time in effect and generally applicable to its salaried employees, and (y) if a Change in Control shall have occurred at that date, the retirement of the Employee from the employ of the Company in accordance with the retirement policy
of the Company in effect immediately before the occurrence of the first Change in Control and generally applicable to its salaried employees. 
  
 (xviii) “Event of Termination for Good Reason” has the meaning assigned to that phrase in Section 5. 
  
 (xix) “Event of Termination for Cause” has the
meaning assigned to that phrase in Section 4. 
  
 (xx) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time. 
  
 (xxi) “Excise Tax” has the meaning assigned to that term in Section 11. 
  
 (xxii) “Expiration Date” has the meaning assigned
to that term in Section 3. 
  
 (xxiii)
“Final Determination” has the meaning assigned to such term in Section 11. 
  
 (xxiv) “Gross-Up Payment” has the meaning assigned to that term in Section 11. 
  
 (xxv) “Other Benefit Plans” has the meaning
assigned to that term in Section 5. 
  
 (xxvi)
“Payment has the meaning assigned to that term in Section 11. 
  
 (xxvii) “person” means any individual, corporation, partnership, joint venture, association, joint-stock company, limited partnership, limited liability company, trust, unincorporated organization,
government, or agency or political subdivision of any government. 
  

 -18- 

 (xxviii) “Relevant Period” means a period beginning on the Termination Date and
ending on the first to occur of (x) the last day of the 24th calendar month immediately following the calendar month in which the Termination Date occurs, (y) the date on which the Employee becomes a full time employee of another person and (z) the
Employee’s normal retirement date, determined in accordance with the retirement policy of the Company in effect on the Termination Date. 
  
 (xxix) “Severance Payment” has the meaning assigned to that term in Section 7. 
  
 (xxx) “Successor” means a person with or into
which the Company shall have been merged or consolidated or to which the Company shall have transferred its assets as an entirety or substantially as an entirety. 
  
 (xxxi) “Tax” has the meaning assigned to that term in Section 11. 
  
 (xxxii) “Tax Claim Notice” has the meaning
assigned to that term in Section 11. 
  
 (xxxiii)
“Tax Counsel” has the meaning assigned to that term in Section 11. 
  
 (xxxiv) “Termination Date” has the meaning assigned to that term in Section 6. 
  
 (xxxv) “this Agreement” means this Change in Control Agreement as it may be amended from time to time in accordance with Section
15. 
  
 (xxxvi) “Underpayment” has the
meaning assigned to that term in Section 11. 
  
 (xxxvii) “Voting Stock” means shares of capital stock of the Company the holders of which are entitled to vote for the election of directors, but excluding shares entitled to so vote only upon the occurrence of a contingency
unless that contingency shall have occurred. 
  
 (xxxviii) “Wholly Owned Entities” has the meaning assigned to that term in Section 13. 
  
 (b) In the event of the enactment of any successor provision to any statue or rule cited in this Agreement, references in this Agreement to such statute
or rule shall be to such successor provision. 
  
 (c) The
headings of Sections of this Agreement shall not control the meaning or interpretation of this Agreement. 
  

 -19- 

 (d) References in this Agreement to any Section are to the corresponding Section of this Agreement unless
the context otherwise indicates. 
  
 IN WITNESS WHEREOF, the
Company and the Employee have executed this Agreement as of the date first set forth above to be effective as of the Effective Date. 
  

			
	 GENAERA CORPORATION

		
	 By:
	 	 /s/ Roy C. Levitt,

	 Name:
	 	Roy C. Levitt, M.D.
	 Title:
	 	President & CEO
	
	 “Employee”

		
	 	 	 /s/ John A. Skolas

	 Name:
	 	John A. Skolas
	
	 APPROVED:

	
	Compensation Committee of the Board of Directors of GENAERA CORPORATION
		
	 By:
	 	 /s/ R. Frank Ecock

	 Name:
	 	R. Frank Ecock
	 Title:
	 	Committee Chairman

  

 -20-Third Amendment to Credit Agreement

  
 Exhibit 10.41

  
 THIRD AMENDMENT TO CREDIT AGREEMENT

  
 This Third Amendment to Credit Agreement is dated
this 3rd day of September, 2004, by and among Respironics, Inc., a Delaware corporation (the “Borrower”),
each of the Guarantors (as defined in the Credit Agreement (as hereinafter defined)), the Banks (as defined in the Credit Agreement), PNC Bank, National Association, in its capacity as agent for the Banks (hereinafter referred to in such capacity as
the “Agent”), and Citizens Bank of Pennsylvania and Fleet National Bank, a Bank of America company, in their capacity as documentation agents for the Banks (hereinafter collectively referred to as the “Documentation Agents”)
(“Third Amendment”). 
  
 W I T
N E S S E T H: 
  
 WHEREAS, the Borrower, the Guarantors, the Banks, the Agent and the Documentation Agents entered into that certain Credit Agreement, dated August 19, 2002, as amended by that certain (i) First Amendment to Credit Agreement, dated as of June
1, 2003, by and among the Borrower, the Guarantors, the Banks, the Agent and the Documentation Agents, and (ii) Second Amendment to Credit Agreement, dated as of April 23, 2004, by and among the Borrower, the Guarantors, the Banks, the Agent and the
Documentation Agents (as amended, the “Credit Agreement”), pursuant to which, among other things, the Banks agreed to provide to the Borrower a revolving credit facility in an aggregate principal amount of One Hundred Fifty Million and
00/100 Dollars ($150,000,000.00); and 
  
 WHEREAS, the Borrower
and the Guarantors desire to amend certain provisions of the Credit Agreement and the Banks, the Agent and the Documentation Agents shall permit such amendments pursuant to the terms and conditions set forth herein. 
  
 NOW, THEREFORE, in consideration of the premises contained herein and other
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows: 
  
 1. All capitalized terms used herein which are defined in the Credit Agreement shall have the same meaning herein as in the
Credit Agreement unless the context clearly indicates otherwise. 
  
 2. Section 1.1 of the Credit Agreement is hereby amended by inserting the following definitions: 
  
 Bank-Provided Hedge shall mean a Hedge Agreement which is provided by any Bank or an Affiliate of a Bank and with respect to which
the Agent confirms (which confirmation shall not be unreasonably withheld) meets the following requirements: such Hedge Agreement (i) is documented in a standard International Swap Dealer Association Agreement, (ii) provides for the method of
calculating the reimbursable amount of the provider’s credit exposure in a customary manner, and (iii) is entered into for hedging (rather than speculative) purposes. The liabilities of the Loan Parties to the provider of any Bank-Provided
Hedge shall be 

  

 
“Obligations” hereunder, guaranteed obligations under the Guaranty Agreements and otherwise treated as Obligations for purposes of each of the
other Loan Documents. 
  
 BBA shall have
the meaning assigned to such term in the definition of Euro-Rate. 
  
 British Pounds Sterling shall mean the official currency of the United Kingdom of Great Britain and Northern Ireland. 
  
 Canadian Dollars shall mean the official currency of Canada. 
  
 Computation Date shall have the meaning assigned to such term in Section 2.12.3. 
  
 Dollar Equivalent shall mean, with respect to any
amount of any currency, the Equivalent Amount of such currency expressed in Dollars. 
  
 Dollar Equivalent Revolving Facility Usage shall mean at any time the sum of the Dollar Equivalent amount of Revolving Credit Loans
then outstanding and the Dollar Equivalent amount of Letters of Credit Outstanding. 
  
 Equivalent Amount shall mean, at any time, as determined by the Agent (which determination shall be conclusive absent manifest
error), with respect to an amount of any currency (the “Reference Currency”) which is to be computed as an equivalent amount of another currency (the “Equivalent Currency”): (i) if the Reference Currency and the Equivalent
Currency are the same, the amount of such Reference Currency, or (ii) if the Reference Currency and the Equivalent Currency are not the same, the amount of such Equivalent Currency converted from such Reference Currency at the Agent’s spot
selling rate (based on the market rates then prevailing and available to the Agent) for the sale of such Equivalent Currency for such Reference Currency at a time determined by the Agent on the second Business Day immediately preceding the event for
which such calculation is made. 
  
 Equivalent
Currency shall have the meaning assigned to such term in the definition of Equivalent Amount. 
  
 Euro shall mean the European common currency pursuant to the European Monetary Union. 
  
 Eurocurrency Liabilities shall have the meaning
assigned to such term in the definition of Euro-Rate Reserve Percentage. 
  

 - 2 - 

 Federal Funds Effective Rate for any day shall mean the rate per annum (based on a
year of 360 days and actual days elapsed and rounded upward to the nearest 1/100 of one percent (1%)) announced by the Federal Reserve Bank of New York (or any successor) on such day as being the weighted average of the rates on overnight federal
funds transactions arranged by federal funds brokers on the previous trading day, as computed and announced by such Federal Reserve Bank (or any successor) in substantially the same manner as such Federal Reserve Bank computes and announces the
weighted average it refers to as the “Federal Funds Effective Rate” as of the date of this Agreement; provided, if such Federal Reserve Bank (or its successor) does not announce such rate on any day, the “Federal Funds
Effective Rate” for such day shall be the Federal Funds Effective Rate for the last day on which such rate was announced. 
  
 Federal Funds Open Rate shall mean the rate per annum determined by the Agent in accordance with its usual procedures (which
determination shall be conclusive absent manifest error) to be the “open” rate for federal funds transactions as of the opening of business for federal funds transactions among members of the Federal Reserve System arranged by federal
funds brokers on such day, as quoted by Garvin Guybutler, any successor entity thereto, or any other broker selected by the Bank, as set forth on the applicable Telerate display page; provided, however; that if such day is not a Business Day, the
Federal Funds Open Rate for such day shall be the “open” rate on the immediately preceding Business Day, or if no such rate shall be quoted by a Federal funds broker at such time, such other rate as determined by the Agent in accordance
with its usual procedures. 
  
 Hedge
Agreements shall mean foreign exchange agreements, currency swap agreements, interest rate exchange, collar, cap, swap, adjustable strike cap, adjustable strike corridor agreements or similar hedging agreements entered into by the Loan Parties
or their Subsidiaries in the ordinary course of business and not for speculative purposes. 
  
 Japanese Yen shall mean the official currency of Japan. 
  
 LIBO Rate shall have the meaning assigned to such term in the definition of Euro-Rate. 
  
 Optional Currency shall mean any of the following
currencies: (i) British Pounds Sterling, (ii) Japanese Yen, (iii) Euros, (iv) Canadian Dollars, (v) Swiss Francs, and (vi) any other currency approved by Agent and all of the Banks pursuant to Section 2.12.4. 
  

 - 3 - 

 Optional Currency Fee shall have the meaning assigned to that term in Section
2.15. 
  
 Original Currency shall have the
meaning assigned to such term in Section 4.10.1. 
  
 Other Currency shall have the meaning assigned to such term in Section 4.10.1. 
  
 Other Taxes shall have the meaning assigned to such term in Section 4.9.2. 
  
 Overnight Rate shall mean for any day with respect to
any Loans in an Optional Currency, the rate of interest per annum as determined by the Agent at which overnight deposits in such currency, in an amount approximately equal to the amount with respect to which such rate is being determined, would be
offered for such day in the applicable offshore interbank market. 
  
 Reference Currency shall have the meaning assigned to such term in the definition of Equivalent Amount. 
  
 Swiss Francs shall mean the official currency of Switzerland. 
  
 Taxes shall have the meaning assigned to such term in Section 4.9.1. 
  
 3. Section 1.1 of the Credit Agreement is hereby amended by deleting the
following definitions in their entirety and replacing them with the following: 
  
 Base Net Worth shall mean, as of any date of determination, the sum of Three Hundred Fifty Million and 00/100 Dollars
($350,000,000.00) plus (i) fifty percent (50%) of consolidated net income of the Borrower and its Subsidiaries (excluding, however, extraordinary gains) for each fiscal quarter in which net income was earned (as opposed to a net loss), plus (ii)
fifty percent (50%) of the net proceeds of capital stock issued by the Borrower and/or its Subsidiaries (other than capital stock issued under any stock option plan, 401(K) plan, employee stock purchase program or other Benefit Arrangement) during
the period from the Closing Date through the date of determination, in each case determined and consolidated for the Borrower and its Subsidiaries in accordance with GAAP. 
  
 Base Rate shall mean the greater of (i) the interest rate per annum announced from time to time by
the Agent at its Principal Office as its then prime rate, which rate may not be the lowest rate then being charged commercial borrowers by the Agent, or (ii) the 

  

 - 4 - 

 
Federal Funds Open Rate plus one half of one percent (.50%) per annum. 
  
 Borrowing Tranche shall mean specified portions of Loans outstanding as follows: (i) any Loans to
which a Euro-Rate Option applies which become subject to the same Interest Rate Option under the same Loan Request by the Borrower and which have the same Interest Period and which are denominated either in Dollars or in the same Optional Currency
shall constitute one Borrowing Tranche, and (ii) all Loans (including Swing Loans) to which a Base Rate Option applies shall constitute one Borrowing Tranche. 
  

Business Day shall mean any day other than a Saturday or Sunday or a legal holiday on which commercial banks are authorized or
required to be closed for business in Pittsburgh, Pennsylvania and (i) if the applicable Business Day relates to any Loan to which the Euro-Rate Option applies, such day must also be a day on which dealings are carried on in the London interbank
market, (ii) with respect to advances or payments of Loans or any other matters relating to Loans denominated in an Optional Currency, such day also shall be a day on which dealings in deposits in the relevant Optional Currency are carried on in the
applicable interbank market, (iii) with respect to advances or payments of Loans denominated in an Optional Currency, such day shall also be a day on which all applicable banks into which Loan proceeds may be deposited are open for business and
foreign exchange markets are open for business in the principal financial center of the country of such currency. 
  
 Euro-Rate shall mean, the following: 
  
 (A) with respect to Dollar Loans comprising any Borrowing Tranche to which the Euro-Rate Option applies for any Interest Period, the
interest rate per annum determined by the Agent by dividing (the resulting quotient rounded upwards, if necessary, to the nearest l/100th of 1% per annum) (i) the rate of interest determined by the Agent in accordance with its usual procedures
(which determination shall be conclusive absent manifest error) to be the average of the London interbank offered rates for U.S. Dollars quoted by the British Bankers’ Association (“BBA”) as set forth on Moneyline Telerate (or
appropriate successor or, if the BBA or its successor ceases to provide such quotes, a comparable replacement determined by the Agent) display page 3750 (or such other display page on the Moneyline Telerate service as may replace display page 3750)
two (2) Business Days prior to the first day of such Interest Period for an amount comparable to such Borrowing Tranche and having a borrowing date and a maturity comparable to such Interest Period 

  

 - 5 - 

 
by (ii) a number equal to 1.00 minus the Euro-Rate Reserve Percentage. The Euro-Rate may also be expressed by the following formula: 
  
 Average of London interbank offered rates quoted by BBA or
appropriate successor as shown on 
  

			
	Euro-Rate =	  	Moneyline Telerate display page 3750
	 	  	1.00 - Euro-Rate Reserve Percentage

  
 The Euro-Rate shall
be adjusted with respect to any Loan to which the Euro-Rate Option applies that is outstanding on the effective date of any change in the Euro-Rate Reserve Percentage as of such effective date. The Agent shall give prompt notice to the Borrower of
the Euro-Rate as determined or adjusted in accordance herewith, which determination shall be conclusive absent manifest error. 
  
 (B) with respect to Optional Currency Loans comprising any Borrowing Tranche to which the Euro-Rate Option applies for any Interest
Period, the interest rate per annum determined by Agent by dividing (i) the rate of interest determined by Agent in accordance with its usual procedures (which determination shall be conclusive absent manifest error) to be the rate of interest per
annum for deposits in the relevant Optional Currency quoted by the BBA as set forth on Moneyline Telerate (or appropriate successor or, if the BBA or its successors ceases to provide such quotes, a comparable replacement determined by the Agent) on
the relevant display page (or such other display page on the Moneyline Telerate service as may replace such display page) at approximately 9:00 a.m., Pittsburgh time, two (2) Business Days prior to the first day of such Interest Period for delivery
on the first day of such Interest Period for a period, and in an amount, comparable to such Interest Period and principal amount of such Borrowing Tranche (“LIBO Rate”) by (ii) a number equal to 1.00 minus the Euro-Rate Reserve Percentage.
Such Euro-Rate may also be expressed by the following formula: 
  

					
	Euro-Rate	  	=	  	                    LIBO
Rate                    
	 	  	 	  	1 - Euro-Rate Reserve Percentage

  
 The Euro-Rate shall
be adjusted with respect to any Loan to which the Euro-Rate Option applies that is outstanding on the effective date of any change in the Euro-Rate Reserve Percentage as of such effective date. The Agent shall give prompt notice to the Borrower of
the Euro-Rate as determined or adjusted in accordance herewith, which determination shall be conclusive absent manifest error. The Euro-Rate for any Loans shall be based upon the Euro-Rate for the currency in which such Loans are requested.

  

 - 6 - 

 Euro-Rate Reserve Percentage shall mean as of any day the maximum percentage in
effect on such day: (i) as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the reserve requirements (including supplemental, marginal and emergency reserve requirements) with respect to
eurocurrency funding (currently referred to as “Eurocurrency Liabilities”); and (ii) to be maintained by a Bank as required for reserve liquidity, special deposit, or a similar purpose by any governmental or monetary authority of any
country or political subdivision thereof (including any central bank), against (A) any category of liabilities that includes deposits by reference to which a Euro-Rate is to be determined, or (B) any category of extension of credit or other assets
that includes Loans or Borrowing Tranches to which a Euro-Rate applies. 
  
 Expiration Date shall mean August 31, 2009. 
  
 Indebtedness shall mean, as to any Person at any time, any and all Indebtedness, obligations or liabilities (whether matured or
unmatured, liquidated or unliquidated, direct or indirect, absolute or contingent, or joint or several) of such Person for or in respect of: (i) borrowed money, (ii) amounts raised under or liabilities in respect of any note, purchase or acceptance
credit facility, (iii) reimbursement obligations (contingent or otherwise) under any Letter of Credit or banker’s acceptance, (iv) any other transactions, (including forward sale or purchase agreements, capitalized leases and conditional sales
agreements) having the commercial effect of a borrowing of money entered into by such Person to finance its operations or capital requirements (but not including trade payables and accrued expenses incurred in the ordinary course of business which
are not represented by a Promissory Note or other evidence of Indebtedness), (v) any guarantee of Indebtedness for borrowed money, (vi) a receivables financing, or (vii) Hedge Agreements. 
  
 Interest Period shall mean the period of time selected by the Borrower in connection with (and to
apply to) any election permitted hereunder by the Borrower to have Revolving Credit Loans bear interest under the Euro-Rate Option. Subject to the last sentence of this definition, such period shall be (i) one (1), two (2), three (3), six (6) or
twelve (12) Months. Such Interest Period shall commence on the effective date of such Interest Rate Option, which shall be (i) the Borrowing Date if the Borrower is requesting new Loans, or (ii) the date of renewal of or conversion to the Euro-Rate
Option if the Borrower is renewing or converting to the Euro-Rate Option applicable to outstanding Loans. Notwithstanding the second sentence hereof: (A) any Interest Period which would otherwise end on a date which is not a Business Day shall be

  

 - 7 - 

 
extended to the next succeeding Business Day unless such Business Day falls in the next calendar month, in which case such Interest Period shall end on the
next preceding Business Day, (B) the Borrower shall not select, convert to or renew an Interest Period for any portion of the Loans that would end after the Expiration Date, and (C) each Interest Period with respect to Optional Currency Loans shall
be one (1) Month. 
  
 Obligation shall
mean any obligation or liability of any of the Loan Parties to the Agent or any of the Banks, howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter existing, or due or to become due, under or
in connection with this Agreement, the Notes, the Letters of Credit, the Agent’s Letter or any other Loan Document. Obligations shall include the liabilities to any Bank under any Bank-Provided Hedge but shall not include the liabilities to
other Persons under any other Hedge Agreement. 
  
 4. Section 1.1
of the Credit Agreement is hereby amended by deleting the following definitions in their entirety: 
  
 Bank-Provided Interest Rate Hedge; 
  
 Federal Funds Rate; and 
  
 Interest Rate Hedge. 
  
 5. Section 2.1.1 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
  
 2.1.1. Revolving Credit Loans. 
  
 Subject to the terms and conditions hereof and relying upon
the representations and warranties herein set forth, each Bank severally agrees to make Revolving Credit Loans in either Dollars or one or more Optional Currencies to the Borrower at any time or from time to time on or after the date hereof to the
Expiration Date provided that (i) after giving effect to such Loan the aggregate Dollar Equivalent amount of Loans from such Bank shall not exceed such Bank’s Revolving Credit Commitment minus such Bank’s Ratable Share of the Dollar
Equivalent amount of Letters of Credit Outstanding, (ii) no Revolving Credit Loan to which the Base Rate Option applies shall be made in an Optional Currency, and (iii) after giving effect to such Loan the Dollar Equivalent amount of all Loans
denominated in Optional Currencies shall not exceed Fifty Million and 00/100 Dollars ($50,000,000.00). Within such limits of time and amount and subject to the other provisions of this Agreement, the Borrower may borrow, repay and reborrow pursuant
to this Section 2.1.1. 
  

 - 8 - 

 6. Section 2.1.2 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted
the following: 
  
 2.1.2. Swing Loans.

  
 Subject to the terms and conditions hereof
and relying upon the representations and warranties herein set forth, and in order to facilitate loans and repayments between Settlement Dates, PNC Bank may, at its option, cancelable at any time for any reason whatsoever, make swing loans (the
“Swing Loans”) to the Borrower in Dollars at any time or from time to time after the date hereof to, but not including, the Expiration Date, in an aggregate principal amount up to but not in excess of Ten Million and 00/100 Dollars
($10,000,000.00) (the “Swing Loan Commitment”), provided that the aggregate principal amount of PNC Bank’s Swing Loans and the Dollar Equivalent amount of the Revolving Credit Loans of all the Banks and the Dollar Equivalent amount of
the Letters of Credit Outstanding at any one time outstanding shall not exceed the Revolving Credit Commitments of all the Banks. Within such limits of time and amount and subject to the other provisions of this Agreement, the Borrower may borrow,
repay and reborrow pursuant to this Section 2.1.2. 
  
 7. Section
2.2 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
  
 2.2 Nature of Banks’ Obligations with Respect to Revolving Credit Loans. 
  
 Each Bank shall be obligated to participate in each request
for Revolving Credit Loans pursuant to Section 2.5.1 [Revolving Credit Loan Requests] in accordance with its Ratable Share. The aggregate Dollar Equivalent amount of each Bank’s Revolving Credit Loans outstanding hereunder to the Borrower at
any time shall never exceed its Revolving Credit Commitment minus its Ratable Share of the Dollar Equivalent amount of Letters of Credit Outstanding, subject to Section 4.7 [Mandatory Prepayments for Currency Fluctuations]. The obligations of each
Bank hereunder are several. The failure of any Bank to perform its obligations hereunder shall not affect the Obligations of the Borrower to any other party nor shall any other party be liable for the failure of such Bank to perform its obligations
hereunder. The Banks shall have no obligation to make Revolving Credit Loans hereunder on or after the Expiration Date. 
  

 - 9 - 

 8. Section 2.3 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the
following: 
  
 2.3 Commitment Fees.

  
 Accruing from the date hereof until the
Expiration Date, the Borrower agrees to pay to the Agent in Dollars for the account of each Bank, as consideration for such Bank’s Revolving Credit Commitment hereunder, a nonrefundable commitment fee (the “Commitment Fee”) equal to
the Applicable Commitment Fee Percentage (computed on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed) on the average daily difference between the amount of (i) such Bank’s Revolving Credit Commitment as the
same may be constituted from time to time (for purposes of this computation, PNC Bank’s Swing Loans shall be deemed to be borrowed amounts under its Revolving Credit Commitment) and the (ii) the sum of such Bank’s Dollar Equivalent amount
of Revolving Credit Loans outstanding plus the Dollar Equivalent amount of its Ratable Share of Letters of Credit Outstanding. All Commitment Fees shall be payable in arrears on the last Business Day of each October, January, April and July after
the date hereof and on the Expiration Date or upon acceleration of the Notes. 
  
 9. Section 2.5.1 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
  
 2.5.1. Revolving Credit Loan Requests. 
  
 Except as otherwise provided herein, the Borrower may from time to time prior to the Expiration Date request the Banks to make Revolving
Credit Loans, or renew or convert the Interest Rate Option applicable to existing Revolving Credit Loans pursuant to Section 3.2 [Interest Periods], by delivering to the Agent, not later than 10:00 a.m., Pittsburgh time, (i) three (3) Business Days
prior to the proposed Borrowing Date with respect to the making of Revolving Credit Loans in Dollars to which the Euro-Rate Option applies or the conversion to or the renewal of the Euro-Rate Option for any such Loans and four (4) Business Days
prior to the proposed Borrowing Date with respect to the making of Revolving Credit Loans in an Optional Currency or the date of conversion to or renewal of the Euro-Rate Option for Revolving Credit Loans in an Optional Currency; and (ii) one (1)
Business Day prior to either the proposed Borrowing Date with respect to the making of a Revolving Credit Loan to which the Base Rate Option applies or the last day of the preceding Interest Period with respect to the conversion to the Base Rate
Option for any Loan, of a duly completed request therefor substantially in the form of 

  

 - 10 - 

 
Exhibit 2.5.1 or a request by telephone immediately confirmed in writing by letter, facsimile or telex in such form (each, a “Loan
Request”), it being understood that the Agent may rely on the authority of any individual making such a telephonic request without the necessity of receipt of such written confirmation. Each Loan Request shall be irrevocable and shall specify
(i) the proposed Borrowing Date; (ii) the aggregate amount of the proposed Loans (expressed in the currency in which such Loans shall be funded) comprising each Borrowing Tranche, the Dollar Equivalent amount of which shall be in integral multiples
of One Million and 00/100 Dollars ($1,000,000.00) and not less than Two Million and 00/100 Dollars ($2,000,000.00) for each Borrowing Tranche to which the Euro-Rate Option applies and integral multiples of One Hundred Thousand and 00/100 Dollars
($100,000.00) and not less than the lesser of Five Hundred Thousand and 00/100 Dollars ($500,000.00) or the maximum amount available for Borrowing Tranches to which the Base Rate Option applies; (iii) whether the Euro-Rate Option or Base Rate Option
shall apply to the proposed Loans comprising the applicable Borrowing Tranche; and (iv) the currency in which such Loans shall be funded if the Borrower is electing the Euro-Rate Option; and (v) in the case of a Borrowing Tranche to which the
Euro-Rate Option applies, an appropriate Interest Period for the Loans comprising such Borrowing Tranche. 
  
 10. Section 2.6.1 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
  
 2.6.1. Making Revolving Credit Loans. 
  
 The Agent shall, promptly after receipt by it of a Loan
Request pursuant to Section 2.5.1 [Revolving Credit Loan Requests], notify the Banks of its receipt of such Loan Request specifying: (i) the proposed Borrowing Date and the time and method of disbursement of the Revolving Credit Loans requested
thereby; (ii) the amount, type and type of currency of each such Revolving Credit Loan and the applicable Interest Period (if any); and (iii) the apportionment among the Banks of such Revolving Credit Loans as determined by the Agent in accordance
with Section 2.2 [Nature of Banks’ Obligations]. Each Bank shall remit the principal amount of each Revolving Credit Loan to the Agent such that the Agent is able to, and the Agent shall, to the extent the Banks have made funds available to it
for such purpose and subject to Section 6.2 [Each Additional Loan], fund such Revolving Credit Loans to the Borrower in U.S. Dollars or the applicable currency and immediately available funds at the Principal Office prior to 2:00 p.m., Pittsburgh
time, on the applicable Borrowing Date, provided that if any Bank fails to remit such funds to the Agent in 

  

 - 11 - 

 
a timely manner, the Agent may elect in its sole discretion to fund with its own funds the Revolving Credit Loans of such Bank on such Borrowing Date, and
such Bank shall be subject to the repayment obligation in Section 9.16 [Availability of Funds]. 
  
 11. Section 2.9.1 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
  
 2.9.1. Issuance of Letters of Credit. 
  
 Borrower may request the issuance of a letter of credit
(each a “Letter of Credit”) on behalf of itself or another Loan Party by delivering or having such other Loan Party deliver to the Issuer a completed application and agreement for letters of credit in such form as the Issuer may specify
from time to time by no later than 10:00 a.m., Pittsburgh time, at least three (3) Business Days, or such shorter period as may be agreed to by the Issuer, in advance of the proposed date of issuance. Each Letter of Credit shall be a Standby Letter
of Credit or a Commercial Letter of Credit and may be denominated in either Dollars or an Optional Currency. Subject to the terms and conditions hereof and in reliance on the agreements of the other Banks set forth in this Section 2.9.1, the Issuer
will issue a Letter of Credit provided that each Letter of Credit shall (A) have a maximum maturity of twelve (12) months from the date of issuance, and (B) in no event expire later than ten (10) Business Days prior to the Expiration Date and
provided further that in no event shall (i) the Dollar Equivalent amount of Letters of Credit Outstanding exceed, at any one time, Thirty Million and 00/100 Dollars ($30,000,000.00) or (ii) the Dollar Equivalent Revolving Facility Usage exceed, at
any one time, the Revolving Credit Commitments. As of the date hereof, those letters of credit set forth on Schedule 2.9.1 attached hereto and made a part hereof, which were issued under the Prior Loan Agreement and are outstanding on the
date hereof, are hereby deemed to be Letters of Credit issued and outstanding hereunder and are included in the calculation of Letters of Credit Outstanding. The parties hereto acknowledge and agree that the letter of credit issued by PNC Bank in
connection with the Borrower’s PEDFA Indebtedness described on Schedule 7.2.1 is not deemed a Letter of Credit hereunder and is not included in the calculation of Letters of Credit Outstanding. 
  

 - 12 - 

 12. Section 2.9.2 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted
the following: 
  
 2.9.2. Letter of Credit
Fees. 
  
 The Borrower shall pay in Dollars
(i) to the Agent for the ratable account of the Banks a fee (the “Letter of Credit Fee”) equal to the Applicable Letter of Credit Fee Percentage (computed on the basis of a year of three hundred sixty (360) days and actual days elapsed),
and (ii) to the Issuer for its own account a fronting fee equal to one-eighth of one percent (.125%) per annum (computed on the basis of a year of 360 days and actual days elapsed), which fees shall be computed on the daily average Dollar Equivalent
amount of Letters of Credit Outstanding and shall be payable quarterly in arrears commencing with the last Business Day of each October, January, April and July following issuance of each Letter of Credit and on the Expiration Date. The Borrower
shall also pay to the Issuer in Dollars for the Issuer’s sole account the Issuer’s then in effect customary fees and administrative expenses payable with respect to the Letters of Credit as the Issuer may generally charge or incur from
time to time in connection with the issuance, maintenance, modification (if any), assignment or transfer (if any), negotiation, and administration of Letters of Credit. 
  
 13. Section 2.9.3.2 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following:

  
 2.9.3.2. In the event of any request for a
drawing under a Letter of Credit by the beneficiary or transferee thereof, the Issuer will promptly notify the Borrower. Provided that it shall have received such notice, the Borrower shall reimburse (such obligation to reimburse the Issuer shall
sometimes be referred to as a “Reimbursement Obligation”) the Issuer in Dollars prior to 12:00 noon, Pittsburgh time on each date that an amount is paid by the Issuer under any Letter of Credit (each such date, a “Drawing Date”)
in an amount equal to the Dollar Equivalent amount so paid by the Issuer. In the event the Borrower fails to reimburse the Issuer for the full Dollar Equivalent amount of any drawing under any Letter of Credit by 12:00 noon, Pittsburgh time, on the
Drawing Date, the Issuer will promptly notify the Agent (if the Agent is not the Issuer) and the Agent will promptly notify each Bank thereof, and the Borrower shall be deemed to have requested that Revolving Credit Loans be made by the Banks in
Dollars under the Base Rate Option to be disbursed on the Drawing Date under such Letter of Credit, subject to the amount of the unutilized portion of the Revolving Credit Commitment and subject to the conditions set forth in Section 6.2 [Each
Additional Loan] other 

  

 - 13 - 

 
than any notice requirements. Any notice given by the Agent pursuant to this Section 2.9.3.2 may be oral if immediately confirmed in writing; provided that
the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice. 
  
 14. Section 2.9.3.3 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
  
 2.9.3.3. Each Bank shall upon any notice pursuant to Section
2.9.3.2 make available to the Agent, for the account of the Issuer, an amount in Dollars in immediately available funds equal to its Ratable Share of the Dollar Equivalent amount of the drawing, whereupon the participating Banks shall (subject to
Section 2.9.3.4) each be deemed to have made a Revolving Credit Loan in Dollars under the Base Rate Option to the Borrower in that amount. If any Bank so notified fails to make available in Dollars to the Agent for the account of the Issuer the
amount of such Bank’s Ratable Share of such Dollar Equivalent amount by no later than 2:00 p.m., Pittsburgh time on the Drawing Date, then interest shall accrue on such Bank’s obligation to make such payment, from the Drawing Date to the
date on which such Bank makes such payment (i) at a rate per annum equal to the Federal Funds Effective Rate during the first three days following the Drawing Date and (ii) at a rate per annum equal to the rate applicable to Loans under the
Revolving Credit Base Rate Option on and after the fourth day following the Drawing Date. The Agent will promptly give notice of the occurrence of the Drawing Date, but failure of the Agent to give any such notice on the Drawing Date or in
sufficient time to enable any Bank to effect such payment on such date shall not relieve such Bank from its obligation under this Section 2.9.3.3. 
  
 15. Section 2.9.3.4 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
  
 2.9.3.4. With respect to any unreimbursed drawing that is
not converted into Revolving Credit Loans under the Base Rate Option to the Borrower in whole or in part as contemplated by Section 2.9.3.2, because of the Borrower’s failure to satisfy the conditions set forth in Section 6.2 [Each Additional
Loan] other than any notice requirements or for any other reason, the Borrower shall be deemed to have incurred from the Agent a borrowing (each a “Letter of Credit Borrowing”) in Dollars in the Dollar Equivalent amount of such drawing.
Such Letter of Credit Borrowing shall be due and payable on demand (together with interest) and shall bear interest at the rate per annum applicable to the Revolving Credit Loans under the Base Rate Option. Each 

  

 - 14 - 

 
Bank’s payment to the Agent, for the account of the Issuer, pursuant to Section 2.9.3.3 shall be deemed to be a payment in respect of its participation
in such Letter of Credit Borrowing and shall constitute a “Participation Advance” from such Bank in satisfaction of its participation obligation under this Section 2.9.3.4. 
  
 16. Section 2.9.4.2 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following:

  
 2.9.4.2. If the Agent, on behalf of the
Issuer, is required at any time to return to any Loan Party, or to a trustee, receiver, liquidator, custodian, or any official in any Insolvency Proceeding, any portion of the payments made by any Loan Party to the Agent, for the account of the
Issuer, pursuant to Section 2.9.4.1 in reimbursement of a payment made under the Letter of Credit or interest or fee thereon, each Bank shall, on demand of the Agent, on behalf of the Issuer, forthwith return to the Agent, for the account of the
Issuer, the amount of its Ratable Share of any amounts so returned by the Agent, on behalf of the Issuer, plus interest thereon from the date such demand is made to the date such amounts are returned by such Bank to the Agent, for the account of the
Issuer, at a rate per annum equal to the Federal Funds Effective Rate in effect from time to time. 
  
 17. The first sentence of Section 2.10 is hereby deleted in its entirety and in its stead is inserted the following: 
  
 If at any time after the Closing Date, and so long as no
Event of Default or Potential Default has occurred and is continuing, the Borrower desires to increase the Revolving Credit Commitments, the Borrower shall notify the Agent, who will promptly notify each Bank thereof, provided that any such increase
shall be in a minimum of Ten Million and 00/100 Dollars ($10,000,000.00) and the aggregate of all such increases shall not exceed One Hundred Million and 00/100 Dollars ($100,000,000.00). 
  
 18. The following is hereby inserted as a new Section 2.12 of the Credit Agreement: 
  
 2.12 Utilization of Commitments in Optional
Currencies. 
  
 2.12.1. Periodic
Computations of Dollar Equivalent Amounts of Loans and Letters of Credit Outstanding. 
  
 The Agent will determine the Dollar Equivalent amount of (i) proposed Revolving Credit Loans or Letters of Credit to be denominated in an
Optional Currency as of the requested 

  

 - 15 - 

 
Borrowing Date or date of issuance, as the case may be, (ii) Letters of Credit Outstanding denominated in an Optional Currency as of the last Business Day of
each month, and (iii) outstanding Revolving Credit Loans denominated in an Optional Currency as of the end of each Interest Period (each such date under clauses (i) through (iii), a “Computation Date”). 
  
 2.12.2. Notices From Banks That Optional Currencies Are
Unavailable to Fund New Loans. 
  
 The Banks
shall be under no obligation to make the Revolving Credit Loans requested by the Borrower which are denominated in an Optional Currency if any Bank notifies the Agent by 5:00 p.m., Pittsburgh time, four (4) Business Days prior to the Borrowing Date
for such Loans that such Bank cannot provide its share of such Loans in such Optional Currency due to the introduction of, or any change in, any applicable Law or any change in the interpretation or administration thereof by any Official Body
charged with the interpretation or administration thereof, or compliance by such Bank (or any of its lending offices) with any request or directive (whether or not having the force of Law) of any such Official Body which would make it unlawful or
impossible for such Bank (or any of its lending offices) to honor its obligations hereunder to make a Loan in an Optional Currency. In the event the Agent timely receives a notice from a Bank pursuant to the preceding sentence, the Agent will notify
the Borrower no later than 12:00 noon, Pittsburgh time, three (3) Business Days prior to the Borrowing Date for such Loans that the Optional Currency is not then available for such Loans, and the Agent shall promptly thereafter notify the Banks of
the same. If the Borrower receives a notice described in the preceding sentence, the Borrower may, by notice to the Agent not later than 5:00 p.m., Pittsburgh time, three (3) Business Days prior to the Borrowing Date for such Loans, withdraw the
Loan Request for such Loans. If the Borrower withdraws such Loan Request, the Agent will promptly notify each Bank of the same and the Banks shall not make such Loans. If the Borrower does not withdraw such Loan Request before such time, (i) the
Borrower shall be deemed to have requested that the Loans referred to in its Loan Request shall be made in Dollars in an amount equal to the Dollar Equivalent amount of such Loans and shall bear interest under the Base Rate Option, and (ii) the
Agent shall promptly deliver a notice to each Bank stating: (A) that such Loans shall be made in Dollars and shall bear interest under the Base Rate Option, (B) the aggregate amount of such Loans, and (C) such Bank’s Ratable Share of such
Loans. 
  

 - 16 - 

 2.12.3. Notices From Banks That Optional Currencies Are Unavailable to Fund Renewals
of the Euro-Rate Option. 
  
 If the Borrower
delivers a Loan Request requesting that the Banks renew the Euro-Rate Option with respect to an outstanding Borrowing Tranche of Loans denominated in an Optional Currency, the Banks shall be under no obligation to renew such Euro-Rate Option if any
Bank delivers to the Agent a notice by 5:00 p.m., Pittsburgh time, four (4) Business Days prior to effective date of such renewal that such Bank cannot continue to provide Loans in such Optional Currency due to the introduction of, or any change in,
any applicable Law or any change in the interpretation or administration thereof by any Official Body charged with the interpretation or administration thereof, or compliance by such Bank (or any of its lending offices) with any request or directive
(whether or not having the force of Law) of any such Official Body which would make it unlawful or impossible for such Bank (or any of its lending offices) to honor its obligations hereunder to make a Loan in an Optional Currency. In the event the
Agent timely receives a notice from a Bank pursuant to the preceding sentence, the Agent will notify the Borrower no later than 12:00 noon, Pittsburgh time, three (3) Business Days prior to the renewal date that the renewal of such Loans in such
Optional Currency is not then available, and the Agent shall promptly thereafter notify the Banks of the same. If the Agent shall have so notified the Borrower that any such continuation of Optional Currency Loans is not then available, any notice
of renewal with respect thereto shall be deemed withdrawn, and such Optional Currency Loans shall be redenominated into Base Rate Loans in Dollars with effect from the last day of the Interest Period with respect to any such Optional Currency Loans.
The Agent will promptly notify the Borrower and the Banks of any such redenomination, and in such notice, the Agent will state the aggregate Dollar Equivalent amount of the redenominated Optional Currency Loans as of the Computation Date with
respect thereto and such Bank’s Ratable Share thereof. 
  
 2.12.4. Requests for Additional Optional Currencies. 
  
 The Borrower may deliver to the Agent a written request that Loans hereunder also be permitted to be made in any other lawful currency
(other than Dollars), in addition to the currencies specified in the definition of “Optional Currency” herein provided that such currency must be freely traded in the offshore interbank foreign exchange markets, freely transferable, freely
convertible into Dollars and available to the Banks in the applicable interbank 

  

 - 17 - 

 
market. The Agent will promptly notify the Banks of any such request promptly after the Agent receives such request. The Agent and each Bank may grant or
accept such request in its sole discretion. The Agent will promptly notify the Borrower of the acceptance or rejection by the Agent and each of the Banks of the Borrower’s request. The requested currency shall be approved as an Optional
Currency hereunder only if the Agent and all of the Banks approve of the Borrower’s request. 
  
 19. The following is hereby inserted as a new Section 2.13 of the Credit Agreement: 
  
 2.13 Currency Repayments. 
  
 Notwithstanding anything contained herein to the contrary, the entire amount of principal of and interest on
any Loan made in an Optional Currency shall be repaid in the same Optional Currency in which such Loan was made, provided, however, that if it is impossible or illegal for Borrower to effect payment of a Loan in the Optional Currency in which such
Loan was made, or if Borrower defaults in its obligations to do so, the Required Banks may at their option permit such payment to be made (i) at and to a different location, subsidiary, affiliate or correspondent of Agent, or (ii) in the Equivalent
Amount of Dollars or (iii) in an Equivalent Amount of such other currency (freely convertible into Dollars) as the Required Banks may solely at their option designate. Upon any events described in (i) through (iii) of the preceding sentence,
Borrower shall make such payment and Borrower agrees to hold each Bank harmless from and against any loss incurred by any Bank arising from the cost to such Bank of any premium, any costs of exchange, the cost of hedging and covering the Optional
Currency in which such Loan was originally made, and from any change in the value of Dollars, or such other currency, in relation to the Optional Currency that was due and owing. Such loss shall be calculated for the period commencing with the first
day of the Interest Period for such Loan and continuing through the date of payment thereof. Without prejudice to the survival of any other agreement of Borrower hereunder, Borrower’s obligations under this Section 2.13 shall survive
termination of this Agreement. 
  
 20. The following is hereby
inserted as a new Section 2.14 of the Credit Agreement: 
  
 2.14 Optional Currency Amounts. 
  
 Notwithstanding anything contained herein to the contrary, Agent may, with respect to notices by Borrower for Loans in an Optional Currency or voluntary prepayments of less than the full amount of an Optional Currency
Borrowing Tranche, engage in reasonable rounding (in accordance with the Agent’s usual and 

  

 - 18 - 

 
customary Optional Currency policies) of the Optional Currency amounts requested to be loaned or repaid; and, in such event, Agent shall promptly notify
Borrower and the Banks of such rounded amounts and Borrower’s request or notice shall thereby be deemed to reflect such rounded amounts. 
  
 21. The following is hereby inserted as a new Section 2.15 of the Credit Agreement: 
  
 2.15 Optional Currency Fee. 
  
 The Borrower shall pay to the Agent in Dollars for its sole account the customary fees of the Agent then in
effect payable with respect to Loans denominated in an Optional Currency or Letters of Credit issued in an Optional Currency as the Agent may generally charge or incur in connection with the funding, maintenance, modification, assignment or
transfer, negotiation, and administration of Loans denominated in an Optional Currency or Letters of Credit issued in an Optional Currency (the “Optional Currency Fee”). 
  
 22. The following is hereby inserted at the end of Section 3.1 of the Credit Agreement: 
  
 Interest on the principal amount of each Loan made in an
Optional Currency shall be paid by the Borrower in such Optional Currency. 
  
 23. Section 3.1.1 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
  
 3.1.1. Revolving Credit Interest Rate Options. 
  
 The Borrower shall have the right to select from the following Interest Rate Options applicable to the
Revolving Credit Loans (subject to the provisions above regarding Swing Loans), except that no Loan to which a Base Rate shall apply may be made in an Optional Currency: 
  
 (i) Revolving Credit Base Rate Option: A fluctuating rate per annum (computed on the basis of a year
of 365 or 366 days, as the case may be, and actual days elapsed) equal to the Base Rate plus the Applicable Margin, such interest rate to change automatically from time to time effective as of the effective date of each change in the Base Rate; or

  
 (ii) Revolving Credit Euro-Rate
Option: A rate per annum (computed on the basis of a year of 360 days and actual days elapsed, provided that, for Loans made in an Optional Currency for which a 365-day basis is the only market practice 

  

 - 19 - 

 
available to the Agent, such rate shall be calculated on the basis of a year of 365 days) equal to the Euro-Rate plus the Applicable Margin. 
  
 24. Section 3.1.2 of the Credit Agreement is hereby deleted in its entirety
and in its stead is inserted the following: 
  
 3.1.2. Rate Quotations. 
  
 The
Borrower may call the Agent on or before the date on which a Loan Request is to be delivered to receive an indication of the interest rates and the applicable currency exchange rates then in effect, but it is acknowledged that such projection shall
not be binding on the Agent or the Banks nor affect the rate of interest or the calculation of Equivalent Amounts which thereafter are actually in effect when the election is made. 
  
 25. Section 3.2 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following:

  
 3.2 Interest Periods. 
  
 At any time when the Borrower shall select, convert to or
renew a Euro-Rate Option, the Borrower shall notify the Agent thereof at least four (4) Business Days prior to the effective date of such Euro-Rate Option, with respect to an Optional Currency Loan, and at least three (3) Business Days prior to the
effective date of such Euro-Rate Option with respect to a Dollar Loan, by delivering a Loan Request. The notice shall specify an Interest Period during which such Interest Rate Option shall apply. Notwithstanding the preceding sentence, in the case
of the renewal of a Euro-Rate Option at the end of an Interest Period, the first (1st) day of the new Interest
Period shall be the last day of the preceding Interest Period, without duplication and payment of interest for such day. 
  
 26. Clause (iii) of Section 3.4.2 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
  
 (iii) after making all reasonable efforts, deposits of the
relevant amount in Dollars or in the Optional Currency (as applicable) for the relevant Interest Period for a Loan, or to banks generally, to which a Euro-Rate Option applies, respectively, are not available to such Bank with respect to such Loan,
or to banks generally, in the interbank eurodollar market, 
  

 - 20 - 

 27. Section 3.4.3 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted
the following: 
  
 3.4.3. Agent’s and
Bank’s Rights. 
  
 In the case of any
event specified in Section 3.4.1 above, the Agent shall promptly so notify the Banks and the Borrower thereof, and in the case of an event specified in Section 3.4.2 above, such Bank shall promptly so notify the Agent and endorse a certificate to
such notice as to the specific circumstances of such notice, and the Agent shall promptly send copies of such notice and certificate to the other Banks and the Borrower. Upon such date as shall be specified in such notice (which shall not be earlier
than the date such notice is given), the obligation of (A) the Banks, in the case of such notice given by the Agent, or (B) such Bank, in the case of such notice given by such Bank, to allow the Borrower to select, convert to or renew a Euro-Rate
Option or select an Optional Currency (as applicable) shall be suspended until the Agent shall have later notified the Borrower, or such Bank shall have later notified the Agent, of the Agent’s or such Bank’s, as the case may be,
determination that the circumstances giving rise to such previous determination no longer exist. If at any time the Agent makes a determination under Section 3.4.1 and the Borrower has previously notified the Agent of its selection of, conversion to
or renewal of a Euro-Rate Option and such Interest Rate Option has not yet gone into effect, such notification shall be deemed to provide for selection of, conversion to or renewal of the Base Rate Option otherwise available with respect to such
Loans. If any Bank notifies the Agent of a determination under Section 3.4.3, the Borrower shall, subject to the Borrower’s indemnification Obligations under Section 4.5.2 [Indemnity], as to any Loan of the Bank to which a Euro-Rate Option
applies, on the date specified in such notice either (i) as applicable, convert such Loan to the Base Rate Option otherwise available with respect to such Loan or select a different Optional Currency or Dollars, or (ii) prepay such Loan in
accordance with Section 4.4 [Voluntary Prepayments]. Absent due notice from the Borrower of conversion or prepayment, such Loan shall automatically be converted to the Base Rate Option otherwise available with respect to such Loan upon such
specified date. 
  

 - 21 - 

 28. Section 3.5 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted
the following: 
  
 3.5 Selection of Interest
Rate Options; Selection of Optional Currency. 
  
 If the Borrower fails to select a new Interest Period or Optional Currency to apply to any Borrowing Tranche of Loans under the Euro-Rate Option at the expiration of an existing Interest Period applicable to such Borrowing Tranche in
accordance with the provisions of Section 3.2 [Interest Periods], the Borrower shall be deemed to have converted such Borrowing Tranche to the Revolving Credit Base Rate Option or to a Dollar Loan, as applicable, commencing upon the last day of the
existing Interest Period. 
  
 29. Section 4.1 of the Credit
Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
  
 4.1 Payments. 
  
 All payments and prepayments to be made in respect of principal, interest, Commitment Fees, Closing Fees, Letter of Credit Fees, Optional
Currency Fees, Agent’s Fee or other fees or amounts due from the Borrower hereunder shall be payable prior to 11:00 a.m., Pittsburgh time, on the date when due without presentment, demand, protest or notice of any kind, all of which are hereby
expressly waived by the Borrower, and without set-off, counterclaim or other deduction of any nature, and an action therefor shall immediately accrue. Such payments shall be made to the Agent at the Principal Office for the account of PNC Bank with
respect to the Swing Loans and for the ratable accounts of the Banks with respect to the Revolving Credit Loans in U.S. Dollars except that payments of principal or interest shall be made in the currency in which such Loan was made, and in
immediately available funds, and the Agent shall promptly distribute such amounts to the Banks in immediately available funds, provided that in the event payments are received by 11:00 a.m., Pittsburgh time, by the Agent with respect to the
Revolving Credit Loans and such payments are not distributed to the Banks on the same day received by the Agent, the Agent shall pay the Banks the Federal Funds Effective Rate in the case of Loans or other amounts due in Dollars, or the Overnight
Rate in the case of Loans or other amounts due in an Optional Currency, with respect to the amount of such payments for each day held by the Agent and not distributed to the Banks. The Agent’s statement of account, ledger or other relevant
record shall, in the absence of manifest error, be conclusive as the statement of the amount of principal of and 

  

 - 22 - 

 
interest on the Loans and other amounts owing under this Agreement (including the Equivalent Amounts of the applicable currencies where such computations are
required) and shall be deemed an “account stated.” 
  
 30. Section 4.2 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
  
 4.2 Pro Rata Treatment of Banks. 
  
 Each borrowing shall be allocated to each Bank according to its Ratable Share, and each selection of, conversion to or renewal of any
Interest Rate Option and each payment or prepayment by the Borrower with respect to principal, interest, Commitment Fees, Closing Fees, Letter of Credit Fees, or other fees (except for the Agent’s Fee and the Optional Currency Fee) or amounts
due from the Borrower hereunder to the Banks with respect to the Loans, shall (except as provided in Section 3.4.3 [Agent’s and Bank’s Rights] in the case of an event specified in Section 3.4 [Euro-Rate Unascertainable; Etc.], 4.4.2
[Replacement of a Bank] or 4.5 [Additional Compensation in Certain Circumstances]) be made in proportion to the applicable Revolving Credit Loans outstanding from each Bank and, if no such Revolving Credit Loans are then outstanding, in proportion
to the Ratable Share of each Bank. Notwithstanding any of the foregoing, each borrowing or payment or pre-payment by the Borrower of principal, interest, fees or other amounts from the Borrower with respect to Swing Loans shall be made by or to PNC
Bank according to Section 2. 
  
 31. Section 4.3 of the Credit
Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
  
 4.3 Interest Payment Dates. 
  
 Interest on Loans to which the Base Rate Option applies shall be due and payable in arrears on the last Business Day of each October,
January, April and July after the date hereof and on the Expiration Date or upon acceleration of the Notes. Interest on Loans to which the Euro-Rate Option applies shall be due and payable in the currency in which such Loan was made on the last day
of each Interest Period for those Loans and, if such Interest Period is longer than three (3) Months, also on the 90th, 180th and 270th (if applicable) day of such Interest Period. Interest on mandatory prepayments of principal under Section 4.7 [Mandatory Prepayments] shall be made in the
currency in which such Loan was made and shall be due on the date such mandatory prepayment is due. Interest on the principal amount of each Loan or other 

  

 - 23 - 

 
monetary Obligation shall be due and payable in the currency in which such Loan was made on demand after such principal amount or other monetary Obligation
becomes due and payable (whether on the stated maturity date, upon acceleration or otherwise). 
  
 32. Section 4.4.1 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
  
 4.4.1. Right to Prepay. 
  
 The Borrower shall have the right at its option from time to time to prepay the Loans in whole or part without premium or penalty (except
as provided in Section 4.4.2 below or in Section 4.5 [Additional Compensation in Certain Circumstances]) in the currency in which such Loan was made: 
  
 (i) at any time with respect to any Loan to which the Base Rate Option applies, 
  
 (ii) on the last day of the applicable Interest Period with
respect to Loans to which a Euro-Rate Option applies, 
  
 (iii) on the date specified in a notice by any Bank pursuant to Section 3.4 [Euro-Rate Unascertainable, Etc.] with respect to any Loan to which a Euro-Rate Option applies. 
  
 Whenever the Borrower desires to prepay any part of the Loans, it shall provide a prepayment notice to the
Agent by 1:00 p.m. at least one (1) Business Day prior to the date of prepayment of the Revolving Credit Loans or no later than 1:00 p.m. Pittsburgh time, on the date of prepayment of Swing Loans, setting forth the following information: 

 
 (x) the date, which shall be a Business Day, on which the
proposed prepayment is to be made; 
  
 (y) a
statement indicating the application of the prepayment between the Revolving Credit Loans and Swing Loans; and 
  
 (z) the total principal amount and currency of such prepayment, the Dollar Equivalent amount of which (a) with respect to Revolving Credit
Loans shall be in integral multiples of One Million and 00/100 Dollars ($1,000,000.00) and not less than Two Million and 00/100 Dollars ($2,000,000.00) for each Borrowing Tranche to which the Euro Rate Option applies and in integral multiples of One
Hundred Thousand and 00/100 Dollars ($100,000.00) and not less than the lesser of Five Hundred Thousand and 00/100 Dollars ($500,000.00) or the outstanding 

  

 - 24 - 

 
principal amount of Revolving Credit Loans to which the Base Rate Option applies and (ii) with respect to Swing Loans, in integral multiples of One Hundred
Thousand and 00/100 Dollars ($100,000.00) and not less than the lesser of Five Hundred Thousand and 00/100 Dollars ($500,000.00) or the outstanding principal amount of the Swing Loans. 
  
 All prepayment notices shall be irrevocable. The principal amount of the Loans for which a prepayment notice
is given, together with interest on such principal amount except with respect to Loans to which the Base Rate Option applies, shall be due and payable on the date specified in such prepayment notice as the date on which the proposed prepayment is to
be made in the currency in which such Loan was made. Except as provided in Section 3.4.3 [Agent’s and Bank’s rights], if the Borrower prepays a Loan but fails to specify the applicable Borrowing Tranche which the Borrower is prepaying, the
prepayment shall be applied first to Loans to which the Base Rate Option applies, then to Dollar Loans to which the Euro-Rate Option applies, and then to Optional Currency Loans. Any prepayment hereunder shall be subject to the Borrower’s
Obligation to indemnify the Banks under Section 4.5.2 [Indemnity]. 
  
 33. Section 4.5.1 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
  
 4.5.1. Increased Costs or Reduced Return Resulting from Taxes. Reserves, Capital Adequacy Requirements, Expenses, Etc. 

 
 If any Law, guideline or interpretation or any change in
any Law, guideline or interpretation or application thereof by any Official Body charged with the interpretation or administration thereof or compliance with any request or directive (whether or not having the force of Law) of any central bank or
other Official Body: 
  
 (i) subjects any Bank to
any tax or changes the basis of taxation with respect to this Agreement, the Notes, the Loans or payments by the Borrower of principal, interest, Commitment Fees, or other amounts due from the Borrower hereunder or under the Notes (except for taxes
on the overall net income of such Bank), 
  
 (ii)
imposes, modifies or deems applicable any reserve, special deposit or similar requirement against credits or commitments to extend credit extended by, or assets (funded or contingent) of, deposits with or for the account of, or other 

  

 - 25 - 

 
acquisitions of funds by, any Bank or any lending office of any Bank, or 
  
 (iii) imposes, modifies or deems applicable any capital adequacy or similar requirement (A) against assets
(funded or contingent) of, or letters of credit, other credits or commitments to extend credit extended by, any Bank, or (B) otherwise applicable to the obligations of any Bank or any lending office of any Bank under this Agreement, 
  
 and the result of any of the foregoing is to increase the cost to, reduce
the income receivable by, or impose any expense (including loss of margin) upon any Bank or its lending office with respect to this Agreement, the Notes or the making, maintenance or funding of any part of the Loans (or, in the case of any capital
adequacy or similar requirement, to have the effect of reducing the rate of return on any Bank’s capital, taking into consideration such Bank’s customary policies with respect to capital adequacy) by an amount which such Bank in its sole
discretion deems to be material, such Bank shall from time to time notify the Borrower and the Agent of the amount determined in good faith (using any averaging and attribution methods employed in good faith) by such Bank to be necessary to
compensate such Bank for such increase in cost, reduction of income, additional expense or reduced rate of return. Such notice shall set forth in reasonable detail the basis for such determination. Such amount shall be due and payable by the
Borrower to such Bank ten (10) Business Days after such notice is given. 
  
 34. The following is hereby inserted as a new Section 4.7 of the Credit Agreement: 
  
 4.7 Mandatory Prepayments for Currency Fluctuations. 
  
 If on any Computation Date the Dollar Equivalent Revolving Facility Usage is equal to or greater than one
hundred percent (100%) of the Commitments as a result of a change in exchange rates between one (1) or more Optional Currencies and Dollars, then the Agent shall notify the Borrower of the same. The Borrower shall pay or prepay Loans (subject to
Borrower’s indemnity obligations under Sections 3.4 and 4.5) within one (1) Business Day after receiving such notice such that the Dollar Equivalent Revolving Facility Usage shall not exceed the aggregate Commitments after giving effect to such
payments or prepayments. 
  

 - 26 - 

 35. The following is hereby inserted as a new Section 4.8 of the Credit Agreement: 
  
 4.8 Interbank Market Presumption. 
  
 For all purposes of this Agreement and each Note with
respect to any aspects of the Euro-Rate, any Loan under the Euro-Rate Option or any Optional Currency, each Bank and Agent shall be presumed to have obtained rates, funding, currencies, deposits, and the like in the applicable interbank market
regardless of whether it did so or not; and, each Bank’s and Agent’s determination of amounts payable under, and actions required or authorized by, Sections 3.4 [Euro-Rate Unascertainable; Illegality; Increased Costs; Deposits Not
Available] and 4.5 [Additional Compensation in Certain Circumstances] shall be calculated, at each Bank’s and Agent’s option, as though each Bank and Agent funded each Borrowing Tranche of Loans under the Euro-Rate Option through the
purchase of deposits of the types and maturities corresponding to the deposits used as a reference in accordance with the terms hereof in determining the Euro-Rate applicable to such Loans, whether in fact that is the case or not. 
  
 36. The following is hereby inserted as a new Section 4.9 of the Credit
Agreement: 
  
 4.9 Taxes. 
  
 4.9.1. No Deductions. 
  
 All payments made by Borrower hereunder and under each Note
shall be made free and clear of and without deduction for any present or future taxes, levies, imposts, deductions, charges, or withholdings, and all liabilities with respect thereto, excluding taxes imposed on the net income of any Bank and all
income and franchise taxes applicable to any Bank of the United States (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings, and liabilities being hereinafter referred to as “Taxes”). If Borrower shall be
required by Law to deduct any Taxes from or in respect of any sum payable hereunder or under any Note, (i) the sum payable shall be increased as may be necessary so that after making all required deductions (including deductions applicable to
additional sums payable under this Section 4.9.1) each Bank receives an amount equal to the sum it would have received had no such deductions been made, (ii) Borrower shall make such deductions and (iii) Borrower shall timely pay the full amount
deducted to the relevant tax authority or other authority in accordance with applicable Law. 
  

 - 27 - 

 4.9.2. Stamp Taxes. 
  
 In addition, Borrower agrees to pay any present or future stamp or documentary taxes or any other excise or
property taxes, charges, or similar levies which arise from any payment made hereunder or from the execution, delivery, or registration of, or otherwise with respect to, this Agreement or any Note (hereinafter referred to as “Other
Taxes”). 
  
 4.9.3. Indemnification for
Taxes Paid by a Bank. 
  
 Borrower shall
indemnify each Bank for the full amount of Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this Section 4.9.3) paid by any Bank and any liability (including
penalties, interest, and expenses) arising therefrom or with respect thereto, whether or not such Taxes or Other Taxes were correctly or legally asserted. This indemnification shall be made within thirty (30) days from the date a Bank makes written
demand therefor. 
  
 4.9.4. Certificate.

  
 Within thirty (30) days after the date of any
payment of any Taxes by Borrower, Borrower shall furnish to each Bank, at its address referred to herein, the original or a certified copy of a receipt evidencing payment thereof. If no Taxes are payable in respect of any payment by Borrower, such
Borrower shall, if so requested by a Bank, provide a certificate of an officer of Borrower to that effect. 
  
 4.9.5. Survival. 
  
 Without prejudice to the survival of any other agreement of Borrower hereunder, the agreements and obligations of Borrower contained in
Sections 4.9.1 through 4.9.4 shall survive the payment in full of principal and interest hereunder and under any instrument delivered hereunder. 
  
 37. The following is hereby inserted as a new Section 4.10 of the Credit Agreement: 
  
 4.10 Judgment Currency. 
  
 4.10.1. Currency Conversion Procedures for Judgments. 
  
 If for the purposes of obtaining judgment in any court it is
necessary to convert a sum due hereunder or under a Note in any currency (the “Original Currency”) into another currency (the 

  

 - 28 - 

 
“Other Currency”), the parties hereby agree, to the fullest extent permitted by Law, that the rate of exchange used shall be that at which in
accordance with normal banking procedures each Bank could purchase the Original Currency with the Other Currency after any premium and costs of exchange on the Business Day preceding that on which final judgment is given. 
  
 4.10.2. Indemnity in Certain Events. 
  
 The obligation of Borrower in respect of any sum due from
Borrower to any Bank hereunder shall, notwithstanding any judgment in an Other Currency, whether pursuant to a judgment or otherwise, be discharged only to the extent that, on the Business Day following receipt by any Bank of any sum adjudged to be
so due in such Other Currency, such Bank may in accordance with normal banking procedures purchase the Original Currency with such Other Currency. If the amount of the Original Currency so purchased is less than the sum originally due to such Bank
in the Original Currency, Borrower agrees, as a separate obligation and notwithstanding any such judgment or payment, to indemnify such Bank against such loss. 
  

38. Section 7.1.12 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
  
 7.1.12. [Reserved.] 
  
 39. Section 7.2.1(vi) of the Credit Agreement is hereby deleted in its
entirety and in its stead is inserted the following: 
  
 (vi) Any Bank-Provided Hedge or other Hedge Agreement approved by the Agent; 
  
 40. Section 7.2.4(v) of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
  
 (v) loans, advances and investments (whether in cash or in kind) in or to (a) corporations, general or limited partnerships, limited
liability companies, joint ventures and similar Persons (excluding natural Persons) that are not Subsidiaries and (b) Subsidiaries that are not Loan Parties (other than RI Assurance and RIC LLC), provided, however, that the aggregate amount of all
such loans, advances and investments shall not exceed (i) Fifty Million and 00/100 Dollars ($50,000,000.00) per such Person or Subsidiary and (ii) One Hundred Million and 00/100 Dollars ($100,000,000.00) at any time for all such Persons and
Subsidiaries; provided, further, that any loan, advance or investment by the Borrower in or to a Subsidiary that is not a Loan Party shall not be included in calculating the Loan Parties’ and 

  

 - 29 - 

 
their Subsidiaries’ compliance with the limits set forth in this Section 7.2.4(v)(b)(i) and (ii) so long as (y) the proceeds of such loan, advance or
investment are used by such Subsidiary solely to complete a Permitted Acquisition (each such loan, advance or investment is an “Acquisition Advance”), and (z) immediately prior to and within ten (10) days following the making of such
Acquisition Advance (A) there are no Loans outstanding, or (B) the amount of the Acquisition Advance does not exceed (1) seventy five percent (75%) of (2) the aggregate amount of cash and Cash Equivalents of the Borrower at such time less the amount
of the Loans outstanding at such time. 
  
 41. Section 7.2.9 of
the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
  
 7.2.9 Subsidiaries. 
  
 Each of the Loan Parties shall not, and shall not permit any of its Subsidiaries to, own or create directly or indirectly any wholly owned
Subsidiaries other than any wholly owned Subsidiary formed or acquired after the Closing Date which (i) is formed or organized outside of the United States, or (ii) joins this Agreement as a Guarantor pursuant to Section 10.18 [Joinder of
Guarantors]. 
  
 42. Section 7.2.14 of the Credit Agreement is
hereby deleted in its entirety and in its stead is inserted the following: 
  
 7.2.14. Minimum Net Worth. 
  
 As of September 30, 2004 and as of the last day of each fiscal quarter thereafter, the Borrower shall not at any time permit Net Worth to be less than the Base Net Worth. 
  
 43. Section 7.3.8 of the Credit Agreement is hereby deleted in its entirety.

  
 44. Section 8.2.1 of the Credit Agreement is hereby deleted in
its entirety and in its stead is inserted the following: 
  
 8.2.1. Events of Default Other Than Bankruptcy, Insolvency or Reorganization Proceedings. 
  
 If an Event of Default specified under Sections 8.1.1 through 8.1.13 shall occur and be continuing, the Banks and the Agent shall be under
no further obligation to make Loans or issue Letters of Credit, as the case may be, and the Agent may, and upon the request of the Required Banks, shall (i) by written notice to the Borrower, declare the unpaid principal amount of the Notes then
outstanding and all interest accrued thereon, any unpaid fees and 

  

 - 30 - 

 
all other Indebtedness of the Borrower to the Banks hereunder to be forthwith due and payable, and the same shall thereupon become and be immediately due and
payable to the Agent for the benefit of each Bank without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived, and (ii) require the Borrower to, and the Borrower shall thereupon, deposit in a
non-interest-bearing account with the Agent, as cash collateral for its Obligations under the Loan Documents, an amount equal to the maximum Dollar Equivalent amount currently or at any time thereafter available to be drawn on all outstanding
Letters of Credit, and the Borrower hereby pledges to the Agent and the Banks, and grants to the Agent and the Banks a security interest in, all such cash as security for such Obligations. Upon the curing of all existing Events of Default to the
satisfaction of the Required Banks, the Agent shall return such cash collateral to the Borrower; and 
  
 45. Section 8.2.5.1 (ii) of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
  
 (ii) second, to the repayment of all Obligations then due
and unpaid of the Loan Parties to the Banks incurred under this Agreement or any of the other Loan Documents or a Bank-Provided Hedge, whether of principal, interest, fees, expenses or otherwise, in such manner as the Agent may determine in its
reasonable discretion; and 
  
 46. Section 9.16 of the Credit
Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
  
 9.16 Availability of Funds. 
  
 The Agent may assume that each Bank has made or will make the proceeds of a Loan available to the Agent in the applicable currency unless
the Agent shall have been notified by such Bank on or before the later of (1) the close of Business on the Business Day preceding the Borrowing Date with respect to such Loan or two (2) hours before the time on which the Agent actually funds the
proceeds of such Loan to the Borrower (whether using its own funds pursuant to this Section 9.16 or using proceeds deposited with the Agent by the Banks and whether such funding occurs before or after the time on which Banks are required to deposit
the proceeds of such Loan with the Agent). The Agent may, in reliance upon such assumption (but shall not be required to), make available to the Borrower a corresponding amount in the applicable currency. If such corresponding amount is not in fact
made available to the Agent by such Bank in the applicable currency, the Agent shall be entitled to recover such amount on 

  

 - 31 - 

 
demand from such Bank (or, if such Bank fails to pay such amount forthwith upon such demand from the Borrower) together with interest thereon, in respect of
each day during the period commencing on the date such amount was made available to the Borrower and ending on the date the Agent recovers such amount, at a rate per annum equal to (i) the Federal Funds Effective Rate during the first three (3) days
after such interest shall begin to accrue and (ii) the applicable interest rate in respect of such Loan after the end of such three-day period. 
  
 47. Section 9.17 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following: 
  
 9.17 Calculations. 
  
 In the absence of gross negligence or willful misconduct,
the Agent shall not be liable for any error in computing the amount payable to any Bank whether in respect of the Loans, fees or any other amounts due to the Banks under this Agreement. In the event an error in computing any amount payable to any
Bank is made, the Agent, the Borrower and each affected Bank shall, forthwith upon discovery of such error, make such adjustments as shall be required to correct such error, and any compensation therefor will be calculated at the Federal Funds
Effective Rate or the Overnight Rate if such computation relates to a Loan made in an Optional Currency. 
  
 48. The following is hereby inserted at the end of Section 10.6 of the Credit Agreement: 
  
 Schedule 1.1(B) lists the lending offices of each Bank. Each Bank may change its lending office by
written notice to the other parties hereto. 
  
 49. All references
to “Fleet National Bank” in the Credit Agreement and each other Loan Document are hereby deleted and in their stead is inserted the following: “Fleet National Bank, a Bank of America company”. 
  
 50. Schedule 1.1(A) is hereby deleted in its entirety and in its stead
is inserted Schedule 1.1(A) attached hereto. 
  
 51.
Schedule 1.1(B) is hereby deleted in its entirety and in its stead is inserted Schedule 1.1(B) attached hereto. 
  

 - 32 - 

 52. The provisions of Section 2 through 51 and Section 54 of this Third Amendment shall not become
effective until the Agent has received the following items, each in form and substance acceptable to the Agent and its counsel: 
  
 (a) this Third Amendment, duly executed by each of the Loan Parties and each of the Banks; 
  
 (b) the documents listed in the Preliminary Closing Agenda
set forth on Exhibit A attached hereto and made a part hereof (except for those documents that are to be provided post closing as described therein); and 
  
 (c) such other documents as may be reasonably requested by the Agent. 
  
 53. Each Loan Party hereby reconfirms and reaffirms all representations and
warranties, agreements and covenants made by it pursuant to the terms and conditions of the Credit Agreement, except as such representations and warranties, agreements and covenants may have heretofore been amended, modified or waived in writing in
accordance with the Credit Agreement. 
  
 54. The Agent and the
Banks hereby release (i) Respironics Deutschland GmbH and Co. KG, a Federal Republic of Germany limited partnership (“Respironics Deutschland”) from that certain Guaranty and Suretyship Agreement, effective August 19, 2002, made by
Respironics Deutschland for the benefit of the Agent and the Banks (the “Respironics Deutschland Guaranty”) and, therefore, Respironics Deutschland has no further obligations pursuant to the Respironics Deutschland Guaranty; (ii)
Respironics (HK) Ltd., a Hong Kong corporation (“Respironics Hong Kong”) from that certain Guaranty and Suretyship Agreement, effective August 19, 2002, made by Respironics Hong Kong for the benefit of the Agent and the Banks (the
“Respironics Hong Kong Guaranty”) and, therefore, Respironics Hong Kong has no further obligations pursuant to the Respironics Hong Kong Guaranty; and (iii) Respironics France S.A.R.L., a French corporation (“Respironics France”)
from that certain Guaranty and Suretyship Agreement, effective August 19, 2002, made by Respironics France for the benefit of the Agent and the Banks (the “Respironics France Guaranty”) and, therefore, Respironics France has no further
obligations pursuant to the Respironics France Guaranty. 
  
 55.
Subject to Paragraph 54 of this Second Amendment, each Loan Party acknowledges and agrees that each and every document, instrument or agreement, which at any time has secured the Obligations including, without limitation, the Guaranty Agreements,
hereby continues to secure the Obligations. 
  
 56. Each Loan
Party hereby represents and warrants to the Banks and the Agent that (i) such Loan Party has the legal power and authority to execute and deliver this Third Amendment, (ii) the officers of such Loan Party executing this Third Amendment have been
duly authorized to execute and deliver the same and bind such Loan Party with respect to the provisions hereof, (iii) the execution and delivery hereof by such Loan Party and the performance and observance by such Loan Party of the provisions hereof
and of the Credit Agreement and all documents executed or to be executed therewith, do not violate or conflict with the organizational agreements of such Loan Party or any Law applicable to such Loan Party or result in a breach of any provision of
or constitute a default under any other agreement, 

  

 - 33 - 

 
instrument or document binding upon or enforceable against such Loan Party, and (iv) this Third Amendment, the Credit Agreement and the documents executed or
to be executed by such Loan Party in connection herewith or therewith constitute valid and binding obligations of such Loan Party in every respect, enforceable in accordance with their respective terms. 
  
 57. Each Loan Party represents and warrants that (i) no Event of Default
exists under the Credit Agreement, nor will any occur as a result of the execution and delivery of this Third Amendment or the performance or observance of any provision hereof, (ii) the schedules attached to and made a part of the Credit Agreement,
are true and correct in all material respects as of the date hereof, except as such schedules may have heretofore been amended or modified in writing in accordance with the Credit Agreement and except as attached hereto as Exhibit B and (ii)
it presently has no known claims or actions of any kind at Law or in equity against the Banks or the Agent arising out of or in any way relating to the Loan Documents. 
  
 58. Each reference to the Credit Agreement that is made in the Credit Agreement or any other document executed or to be
executed in connection therewith shall hereafter be construed as a reference to the Credit Agreement as amended hereby. 
  
 59. The agreements and releases contained in this Third Amendment are limited to the specific agreements and releases made herein. Except as amended
hereby, all of the terms and conditions of the Credit Agreement and the Loan Documents shall remain in full force and effect. This Third Amendment amends the Credit Agreement and is not a novation thereof. 
  
 60. This Third Amendment may be executed in any number of counterparts and by
the different parties hereto on separate counterparts each of which, when so executed, shall be deemed to be an original, but all such counterparts shall constitute but one and the same instrument. 
  
 61. This Third Amendment shall be governed by, and shall be construed and
enforced in accordance with, the Laws of the Commonwealth of Pennsylvania without regard to the principles of the conflicts of law thereof. Each Loan Party hereby consents to the jurisdiction and venue of the Court of Common Pleas of Allegheny
County, Pennsylvania and the United States District Court for the Western District of Pennsylvania with respect to any suit arising out of or mentioning this Third Amendment. 
  

 - 34 - 

 IN WITNESS WHEREOF, and intending to be legally bound, the parties hereto have caused this Third
Amendment to be duly executed by their duly authorized officers on the day and year first above written. 
  
 Respironics, Inc., a Delaware corporation 
 Respironics International, Inc., a Delaware corporation 
 Swiftmed Corp., a Georgia
corporation 
 Respironics Colorado, Inc., a Colorado corporation 
 Respironics International Global Enterprises, Inc., a Delaware corp. 
 Respironics California, Inc., a California corporation 
 Respironics New Jersey, Inc., a New Jersey corporation 
 Fiberoptic Medical Products, Inc., a Pennsylvania corporation 
 Respironics Novametrix, LLC, a Delaware limited liability company 
 Children’s Medical Ventures, LLC, a Delaware limited liability co. 
 RI Finance, Inc., a Delaware corporation 
 RI Licensing, Inc., a Delaware corporation 
 Respironics Overseas, Inc., a Delaware
corporation 
  

									
	 WITNESS:
	 	 	 	 
				
	 /s/ Eileen R. Sisca
	 	 	 	By:	 	 /s/ Daniel J. Bevevino

	 Eileen R. Sisca
 Associate General Counsel
	 	 	 	Daniel J. Bevevino, Vice President and Chief Financial Officer of Respironics, Inc., Vice President of Respironics International, Inc., Vice President of Swiftmed Corp., Treasurer of
Respironics Colorado, Inc., Vice President of Respironics International Global Enterprises, Inc., Vice President of Respironics California, Inc., Vice President of Respironics New Jersey, Inc., Vice President of Fiberoptic Medical Products, Inc.,
Treasurer of Respironics Novametrix, LLC, Vice President of Children’s Medical Ventures, LLC, President of RI Finance, Inc., President of RI Licensing, Inc., and Vice President of Respironics Overseas, Inc.

  

									
	 WITNESS:
	 	 	 	 RI Trading, LLC, a Delaware limited liability company

				
	/s/ Eileen R. Sisca	 	 	 	By:	 	 /s/ Steven P. Fulton

	 Eileen R. Sisca
 Associate General Counsel
	 	 	 	 Steven P. Fulton, Executive Vice President & Secretary

  

			
	PNC Bank, National Association, individually as a Bank and as Agent
		
	By:	 	 /s/ Enrico A. Della Corna

	 Name:
	 	 Enrico A. Della Corna

	 Title:
	 	 Managing Director

  

			
	Citizens Bank of Pennsylvania, individually as a Bank and as Documentation Agent
		
	By:	 	 /s/ Dwayne R. Finney

	 Name:
	 	 Dwayne R. Finney

	 Title:
	 	 Vice President

  

			
	Fleet National Bank, individually as a Bank and as Documentation Agent
		
	By:	 	 /s/ Sandra Guerrieri

	 Name:
	 	 Sandra Guerrieri

	 Title:
	 	 Vice President

  

			
	Fifth Third Bank
		
	By:	 	 /s/ Jim Janovsky

	 Name:
	 	 Jim Janovsky

	 Title:
	 	 Vice President

  

			
	National City Bank of Pennsylvania
		
	By:	 	 /s/ Susan J. Dimmick

	 Name:
	 	 Susan J. Dimmick

	 Title:
	 	 Vice President

  

			
	Key Bank National Association
		
	By:	 	 /s/ CHRISTOPHER A. SWINDELL

	 Name:
	 	 CHRISTOPHER A. SWINDELL

	 Title:
	 	 Portfolio Manager

  

  
 SCHEDULE 1.1(A)

  
 PRICING GRID 
  
 Page 1 of 1 
  

															
	 Pricing
Level

	  	 Leverage Ratio *

	  	Base Rate
Margin

	 	 	Euro-Rate
Margin

	 	 	Letter of
Credit Fee
Percentage

	 	 	Commitment
Fee
Percentage

	 
	I	  	 Less than 0.75 to 1.0
	  	0.00	%	 	0.50	%	 	0.50	%	 	0.16	%
	II	  	 Greater than or equal to 0.75 to 1.0 but less than 1.0 to 1.0
	  	0.00	%	 	0.625	%	 	0.625	%	 	0.185	%
	III	  	 Greater than or equal to 1.0 to 1.0 but less than 1.25 to 1.0
	  	0.00	%	 	0.75	%	 	0.75	%	 	0.21	%
	IV	  	 Greater than or equal to 1.25 to 1.0 but less than 1.50 to 1.0
	  	0.00	%	 	0.875	%	 	0.875	%	 	0.235	%
	V	  	 Greater than or equal to 1.50 to 1.0 but less than 1.75 to 1.0
	  	0.00	%	 	1.00	%	 	1.00	%	 	0.26	%
	VI	  	 Greater than or equal to 1.75 to 1.0
	  	0.00	%	 	1.25	%	 	1.25	%	 	0.285	%

  

	*	Until the forty-fifth (45th) day following the
fiscal quarter of the Borrower and its Subsidiaries ended September 30, 2004, the Applicable Margin, Applicable Letter of Credit Fee Percentage and the Applicable Commitment Fee Percentage shall be calculated based upon the Level I Pricing set forth
above. Any change thereafter shall be based upon the financial statements and compliance certificates provided pursuant to Section 7.3 and shall become effective on the forty-fifth (45th) day following the last day of the fiscal quarter upon which the Leverage Ratio is calculated in accordance with Section 7.2.12; provided, however, with
respect to Loans in an Optional Currency only, no change in pricing shall become effective until the end of the Interest Period applicable to each such Loan. 

  

 SCHEDULE 1.1(A) - 1 

  
 SCHEDULE 1.1(B)

  
 COMMITMENTS OF BANKS AND ADDRESSES FOR NOTICES

  
 Page 1 of 5 
  
 Part 1 - Commitments of Banks and Addresses for Notices to Banks 
  
 Amount of Commitment 
 for Revolving Credit 
  

					
	 Bank

	  	 Loans

	  	 Ratable Share

	 Name: PNC Bank, N.A.
 Address: 249 Fifth Avenue
 Pittsburgh, PA 15222
 Attention: Enrico Delia Corna
 Telephone    (412) 762-6036
 Telecopy:     (412) 762-6484
	  	$35,000,000.00	  	23.3333333333%
			
	 Name: Citizens Bank of Pennsylvania
 Address: 525 William Penn Place
 Pittsburgh, PA 15219
 Attention: Dwayne R. Finney
 Telephone    (412)867-2418
 Telecopy:     (412) 552-6307
	  	$22,500,000.00	  	15.0000000000%
			
	 Name: Fleet National Bank, a Bank
 of America company
 Address: 1600 John F. Kennedy
 Blvd., 11th Floor
 Philadelphia, PA 19103
 Attention: Sandra Guerrieri
 Telephone    (267) 675-0192

Telecopy:     (267) 675-0366
	  	$32,500,000.00	  	21.6666666667%
			
	 Name: National City Bank of
 Pennsylvania
 Address: National City Center
 20 Stanwix Street
 Pittsburgh, PA 15222
 Attention: Susan J. Dimmick
 Telephone    (412) 644-7726
 Telecopy:     (412)471-4883
	  	$22,500,000.00	  	15.0000000000%

  

 SCHEDULE 1.1(B) - 1 

  
 Amount of Commitment

 for Revolving Credit 
  

					
	 Bank

	  	 Loans

	  	 Ratable Share

	 Name: Fifth Third Bank
 Address: Eleven Parkway Center
 Suite 375
 Pittsburgh, PA 15220
 Attention: James M. Janovsky
 Telephone    (412) 937-1855 ext. 27
 Telecopy:     (412) 937-9896
	  	$15,000,000.00	  	10.0000000000%
			
	 Name: Key Bank National
 Association
 Address: 800 Superior Avenue
 Cleveland, OH 44114
 Attention: Michael Jackson
 Telephone    (216)689-4441
 Telecopy:     (216)
689-8329
	  	$22,500,000.00	  	15.0000000000%
			
	 Total
	  	$150,000,000.00	  	100%

  

 SCHEDULE 1.1(B) - 2 

  
 SCHEDULE 1.1(B)

  
 COMMITMENTS OF BANKS AND ADDRESSES FOR NOTICES

  
 Page 3 of 5 
  
 Part 2 - Addresses for Notices to Borrower and Guarantors: 
  
 AGENT 
  
 Name: PNC Bank, National Association 
 Address:
One PNC Plaza 
 249 Fifth Avenue 
 Pittsburgh, PA 15222

 Attention: Enrico Della Corna 
 Telephone: (412) 762-6036

 Telecopy:   (412) 762-6484 
  
 Name: PNC Bank, National Association 
 Address: Multibank Loan Administration

 22nd Floor, One PNC
Plaza 
 Pittsburgh, PA 15222 
 Attention: Lisa Pierce 

Telephone: (412) 762-6442 
 Telecopy:   (412) 762-8672

  
 BORROWER: 
  
 Name: Respironics, Inc. 
 Address: 1010 Murry Ridge Lane 
 Murrysville, PA 15668 
 Attention: Daniel J. Bevevino 
 Telephone: (724) 387-5235 
 Telecopy:   (724) 387-5016 
  
 GUARANTORS: 
  
 Name: Respironics Novametrix, LLC 
 Address: 1010 Murry Ridge Lane 
 Murrysville, PA 15668 
 Attention: Daniel J. Bevevino 
 Telephone: (724) 387-5235 
 Telecopy:   (724) 387-5016 
  

 SCHEDULE 1.1(B) - 3 

 Name: RI Trading, LLC 
 Address: 1010 Murry Ridge Lane 
 Murrysville, PA 15668 
 Attention: Daniel J. Bevevino 
 Telephone: (724) 387-5235 
 Telecopy:   (724) 387-5016 
  
 Name: Respironics
International, Inc. 
 Address: 1010 Murry Ridge Lane 
 Murrysville, PA 15668 
 Attention: Daniel J. Bevevino 
 Telephone: (724) 387-5235 
 Telecopy:   (724) 387-5016 
  
 Name: Swiftmed Corp. 
 Address: 1010 Murry Ridge
Lane 
 Murrysville, PA 15668 
 Attention: Daniel J. Bevevino

 Telephone: (724) 387-5235 
 Telecopy:   (724)
387-5016 
  
 Name: Respironics New Jersey, Inc. 
 Address: 1010 Murry Ridge Lane 
 Murrysville, PA 15668 
 Attention: Daniel J. Bevevino 
 Telephone: (724) 387-5235 
 Telecopy:   (724) 387-5016 
  
 Name: Respironics Colorado, Inc. 
 Address: 1010 Murry Ridge Lane 

Murrysville, PA 15668 
 Attention: Daniel J. Bevevino 
 Telephone: (724) 387-5235 
 Telecopy:   (724) 387-5016 

 
 Name: Childrens Medical Ventures, Inc. 
 Address: 1010 Murry Ridge Lane 
 Murrysville, PA 15668 
 Attention: Daniel J. Bevevino 
 Telephone: (724) 387-5235 
 Telecopy:   (724) 387-5016 
  

 SCHEDULE 1.1(B) - 4 

 Name: RI Finance, Inc. 
 Address: 1010 Murry Ridge Lane 
 Murrysville, PA 15668 
 Attention: Daniel J. Bevevino 
 Telephone: (724) 387-5235 
 Telecopy:   (724) 387-5016 
  
 Name: RI Licensing, Inc.

 Address: 1010 Murry Ridge Lane 
 Murrysville, PA 15668

 Attention: Daniel J. Bevevino 
 Telephone: (724) 387-5235

 Telecopy:   (724) 387-5016 
  
 Name: Respironics California, Inc. 
 Address: 1010 Murry Ridge Lane

 Murrysville, PA 15668 
 Attention: Daniel J. Bevevino

 Telephone: (724) 387-5235 
 Telecopy:   (724)
387-5016 
  
 Name: Respironics Overseas, Inc. 
 Address: 1010 Murry Ridge Lane 
 Murrysville, PA 15668 
 Attention: Daniel J. Bevevino 
 Telephone: (724) 387-5235 
 Telecopy:   (724) 387-5016 
  
 Name: Fiberoptic Medical Products, Inc. 
 Address: 1010 Murry Ridge Lane

 Murrysville, PA 15668 
 Attention: Daniel J. Bevevino

 Telephone: (724) 387-5235 
 Telecopy:   (724)
387-5016 
  

 SCHEDULE 1.1(B) - 5 

  
 EXHIBIT A 

 
 PRELIMINARY CLOSING AGENDA 
  
 This preliminary closing agenda contains the documents to be delivered in
connection with the Third Amendment to Credit Agreement, by and among Respironics, Inc., a Delaware corporation (the “Borrower”), each of the Guarantors party thereto (the “Guarantors”), the Banks party
thereto (the “Banks”), PNC Bank, National Association, in its capacity as agent for the Banks (hereinafter referred to in such capacity as the “Agent”), and Citizens Bank of Pennsylvania and Fleet National Bank,
a Bank of America company, in their capacity as documentation agents for the Banks (hereinafter collectively referred to as the “Documentation Agents”) (the “Third Amendment”). 
  

							
	No.

	  	 LOAN DOCUMENTS

	  	 Responsible
Party

	  	 Status

	1.	  	Third Amendment to Credit Agreement, by and among the Borrower, the Guarantors, the Banks, the Agent and the Documentation Agents (the “Third Amendment”).	  	Agent	  	Final
				
	2.	  	First Amended and Restated Revolving Credit Note, made by the Borrower to Citizens Bank of Pennsylvania, in the principal amount not to exceed Twenty Two Million Five Hundred Thousand and 00/100
Dollars ($22,500,000.00).	  	Agent	  	Final
				
	3.	  	First Amended and Restated Revolving Credit Note, made by the Borrower to Fleet National Bank, a Bank of America company, in the principal amount not to exceed Thirty Two Million Five Hundred
Thousand and 00/100 Dollars ($32,500,000.00).	  	Agent	  	Final
				
	4.	  	First Amended and Restated Revolving Credit Note, made by the Borrower to National City Bank of Pennsylvania, in the principal amount not to exceed Twenty Two Million Five Hundred Thousand and
00/100 Dollars ($22,500,000.00).	  	Agent	  	Final
				
	5.	  	Revolving Credit Note, made by the Borrower to Key Bank National Association in the principal amount not to exceed Twenty Two Million Five Hundred Thousand and 00/100 Dollars
($22,500,000.00).	  	Agent	  	Final

  

 A-1 

  

							
	ORGANIZATIONAL DOCUMENTS	  	 	  	 
			
	(BORROWER)	  	 	  	 
				
	6.	  	Certificate of the Secretary of the Borrower as to (i) the resolutions of the Borrower’s Board of Directors authorizing the Borrower to enter into the Third Amendment and all related
documentation, (ii) incumbency, and (iii) no amendments to its Certificate of Incorporation and By-Laws.	  	Borrower	  	Final
				
	 	  	(GUARANTORS)	  	 	  	 
				
	7.	  	Certificate of the Secretary of each Guarantor/Guarantor’s General Partner as to (i) the resolutions of such Guarantor’s/Guarantor’s General Partner’s Board of
Directors/Board of Managers/Managing Director authorizing such Guarantor/Guarantor’s General Partner to execute the Third Amendment and the related documentation, (ii) incumbency, and (iii) no amendments to its organizational
documents.1	  	Borrower	  	Side Letter Item
				
	 	  	(RESPIRONICS OVERSEAS)	  	 	  	 
				
	8.	  	Copy of the Articles of Incorporation of Respironics Overseas, Inc., a Delaware corporation (“Respironics Overseas”), certified by the Secretary of State of the State of
Delaware.1	  	Borrower	  	Side Letter Item
				
	9.	  	Copy of the Bylaws of Respironics Overseas, certified by the Secretary of Respironics Overseas.1	  	Borrower	  	Side Letter Item
				
	10.	  	Good Standing Certificate of Respironics Overseas from the Secretary of State of the State of Delaware and each state in which it is registered to do business as a foreign corporation, if
any.1	  	Borrower	  	Side Letter Item
				
	 	  	(RI FINANCE)	  	 	  	 
				
	11.	  	Copy of the Articles of Incorporation of RI Finance, Inc., a Delaware corporation (“RI Finance”), certified by the Secretary of State of the State of Delaware.1	  	Borrower	  	Side Letter Item
				
	12.	  	Copy of the Bylaws of RI Finance, certified by the Secretary of RI Finance.1	  	Borrower	  	Side Letter Item

	1	To be delivered post closing pursuant to the terms of the Side Letter.

  

 A-2 

							
				
	13.	  	Good Standing Certificate of RI Finance from the Secretary of State of the State of Delaware and each state in which it is registered to do business as a foreign corporation, if any.1	  	Borrower	  	Side
Letter
Item
				
	 	  	(RI LICENSING)	  	 	  	 
				
	14.	  	Copy of the Articles of Incorporation of RI Licensing, Inc., a Delaware corporation (“RI Licensing”), certified by the Secretary of State of the State of Delaware.1	  	Borrower	  	Side
Letter
Item
				
	15.	  	Copy of the Bylaws of RI Licensing, certified by the Secretary of RI Licensing.1	  	Borrower	  	Side
Letter
Item
				
	16.	  	Good Standing Certificate of RI Licensing from the Secretary of State of the State of Delaware and each state in which it is registered to do business as a foreign corporation, if
any.1	  	Borrower	  	Side
Letter
Item
				
	 	  	RELATED DOCUMENTS	  	 	  	 
				
	17.	  	Opinion of Counsel to the Borrower and the Guarantors, in form and substance satisfactory to the Agent and the Banks.2	  	Borrower	  	Opinion of
counsel to
Borrower
is final;
Opinion of
counsel to
guarantor
is a side
letter item
				
	18.	  	Officer’s Certificate regarding no material adverse change, the accuracy of representations and warranties, compliance with covenants and absence of any Event of Default or Potential
Default.	  	Agent/
Borrower	  	Final
				
	19.	  	Amended and restated Exhibit 2.5.1 to the Credit Agreement – Revolving Credit Loan Request.	  	Agent	  	Final
				
	20.	  	Amended and restated Schedule 1.1 (B) to the Credit Agreement.	  	Agent	  	Final
				
	21.	  	Other revised schedules to the Credit Agreement as set forth on Exhibit B to the Second Amendment, if necessary.	  	Borrower	  	Final
				
	22.	  	Side Letter, by and among the Borrower, the Guarantors, and the Agent.	  	Agent	  	Final

	2	Opinion of counsel with respect to Guarantors to be delivered post closing pursuant to the
terms of the Side Letter. 

  

 A-3 

  
 EXHIBIT B 

 
 Schedule 1.1(A)(2) 
 Authorized Officers 
  
 Respironics, Inc. 
  

			
	 Name

	  	 Title

	John L. Miclot	  	President and CEO
	Daniel J. Bevevino	  	Vice President and CFO
	Steven P. Fulton	  	Vice President and Gen. Counsel
	James C. Woll	  	Vice President and Corporate Controller
	Dorita A. Pishko	  	Corporate Secretary
	Patricia A. Newingham*	  	Manager, Corporate Financial
	(*For compliance certificates only)	  	Reporting

  
 Respironics Novametrix, LLC

  

			
	 Name

	  	 Title

	John L. Miclot	  	President
	Steven P. Fulton	  	Vice President
	James C. Woll	  	Vice President
	Daniel J. Bevevino	  	Treasurer
	Dorita A. Pishko	  	Secretary

  
 Respironics International, Inc.

  

			
	 Name

	  	 Title

	John L. Miclot	  	President and CEO
	Steven P. Fulton	  	Vice President and Gen. Counsel
	Daniel J. Bevevino	  	Vice President and Treasurer
	James C. Woll	  	Vice President
	Dorita A. Pishko	  	Secretary

  
 Swiftmed Corp. 
  

			
	 Name

	  	 Title

	John L. Miclot	  	President and CEO
	Steven P. Fulton	  	Vice President and Gen. Counsel
	Daniel J. Bevevino	  	Vice President and Treasurer
	Dorita A. Pishko	  	Secretary

  

 B-1 

 Respironics Colorado, Inc. 
  

			
	 Name

	  	 Title

	 John L. Miclot
 Steven P. Fulton
 James C. Woll
 Daniel J. Bevevino
 Dorita A. Pishko
	  	 Chairman and President
 Vice President
 Vice President
 Treasurer
 Secretary

  
 Children’s Medical Ventures,
LLC 
  

			
	 Name

	  	 Title

	 John L. Miclot
 Steven P. Fulton
 Daniel J. Bevevino
 Dorita A. Pishko
	  	 President and CEO
 Vice President and Gen.
Counsel
 Vice President and Treasurer
 Secretary

  
 Respironics International Global
Enterprises, Inc. 
  

			
	 Name

	  	 Title

	 John L. Miclot
 Daniel J. Bevevino
 Steven P. Fulton
 James C. Woll
 Dorita A. Pishko
	  	 President
 Vice President and Treasurer
 Vice President
 Vice President
 Secretary

  
 Respironics California, Inc.

  

			
	 Name

	  	 Title

	 John L. Miclot
 Steven P. Fulton
 Daniel J. Bevevino
 Dorita A. Pishko
	  	 President and CEO
 Vice President and Gen.
Counsel
 Vice President and Treasurer
 Secretary

  
 Respironics New Jersey, Inc.

  

			
	 Name

	  	 Title

	 John L. Miclot
 Steven P. Fulton
 Daniel J. Bevevino
 Dorita A. Pishko
	  	 President and CEO
 Vice President and Gen.
Counsel
 Vice President and Treasurer
 Secretary

  

 B-2 

 Fiberoptic Medical Products, Inc. 
  

			
	 Name

	  	 Title

	 John L. Miclot
 Steven P. Fulton
 Daniel J. Bevevino
 Dorita A. Pishko
	  	 President and CEO
 Vice President and Gen.
Counsel
 Vice President and Treasurer
 Secretary

  
 Respironics Overseas, Inc.

  

			
	 Name

	  	 Title

	 John L. Miclot
 Daniel J. Bevevino
 Steven P. Fulton
 James C. Woll
 Dorita A. Pishko
	  	 President & CEO
 Vice President and CFO

Vice President & Gen. Counsel
 Vice President
 Secretary

  
 RI Finance, Inc. 
  

			
	 Name

	  	 Title

	 Daniel J. Bevevino
 Steven P. Fulton
	  	 President
 Executive VP &
Secretary

  
 RI Licensing, Inc. 

 

			
	 Name

	  	 Title

	 Daniel J. Bevevino
 Steven P. Fulton
	  	 President
 Executive VP &
Secretary

  
 RI Trading, LLC 
  

			
	 Name

	  	 Title

	 James C. Woll
 Steven P. Fulton
	  	 President
 Executive VP &
Secretary

  

 B-3 

  
 Schedule 5.1.1

 Qualifications To Do Business 
  

					
	 Name

	  	Jurisdiction of Formation

	  	Jurisdictions in Which Qualified

	 Respironics, Inc.
	  	Delaware	  	California
Illinois
Pennsylvania
	 Respironics Novametrix, LLC
	  	Delaware	  	Connecticut
	 RIC Investments, LLC
	  	Delaware	  	 
	 Respironics International, Inc.
	  	Delaware	  	Connecticut; Branch in France
	 SwiftMed Corp.
	  	Georgia	  	Florida
	 Respironics Colorado, Inc.
	  	Colorado	  	 
	 Children’s Medical Ventures, LLC
	  	Delaware	  	Massachusetts
	 Respironics France
	  	France	  	 
	 Respironics International Global Enterprises, Inc.
	  	Delaware	  	Branch in Japan
Branch in Spain
Branch in United Kingdom
	 Respironics California, Inc.
	  	California	  	 
	 Respironics New Jersey, Inc.
	  	New Jersey	  	Alabama
California
Illinois
	 Respironics Deutschland GmbH and Co. KG
	  	Germany	  	 
	 Respironics (HK) Ltd.
	  	Hong Kong	  	 
	 Fiberoptic Medical Products, Inc.
	  	Pennsylvania	  	 
	 Emertech S.A.R.L.
	  	France	  	 
	 Respironics Netherlands B.V.
	  	Netherlands	  	 
	 Healthdyne U.K. Limited
	  	United Kingdom	  	 
	 Fuji Respironics Kabushiki Kaisha
	  	Japan	  	 
	 Respironics Verwaltungsgesellschaft mbH
	  	Germany	  	 
	 RCM Manufacturing
	  	Philippines	  	 
	 Sigma Manufacturing Ltd.
	  	Hong Kong	  	 
	 Wegot Investments Ltd.
	  	Hong Kong	  	 
	 Respironics Medical Products (Shenzhen) Ltd.
	  	PRC	  	 
	 Respironics Technotrend Ltd.
	  	Hong Kong	  	 
	 Respironics Brussels, S.A.
	  	Belgium	  	 
	 Respironics Overseas, Inc.
	  	Delaware	  	 
	 Respicare Hokkaido
	  	Japan	  	 
	 RI Finance, Inc.
	  	Delaware	  	 
	 RI Licensing, Inc.
	  	Delaware	  	 

  

 B-4 

					
	 Name

	  	Jurisdiction of Formation

	  	Jurisdictions in Which Qualified

	 RI Assurance, Inc.
	  	Vermont	  	 
	 RI Trading, LLC
	  	Delaware	  	 
	 Respironics Sleep & Respiratory Research Foundation
	  	Pennsylvania	  	 
	 Western Biomedical Technologies Limited
	  	Ireland	  	 
	 Respironics (Ireland) Limited
	  	Ireland	  	 
	 Caradyne (R&D) Limited
	  	Ireland	  	 
	 Respironics Profile, Inc.
	  	Delaware	  	 
	 Respironics UK Holding Company Limited
	  	United Kingdom	  	 
	 Profile Therapeutics Ltd.
	  	United Kingdom	  	 
	 Profile Respiratory Systems Ltd.
	  	United Kingdom	  	 
	 Profile Drug Delivery Ltd.
	  	United Kingdom	  	 
	 Profile Pharma Ltd.
	  	United Kingdom	  	 
	 Profile Therapeutics, Inc.
	  	Massachusetts	  	 
	 Medic-Aid Employee Benefit Trust Ltd.
	  	United Kingdom	  	 
	 P.B. North America Ltd.
	  	United Kingdom	  	 
	 Middlesign Ltd.
	  	United Kingdom	  	 
	 Normed A/S
	  	Norway	  	 

  

 B-5 

  
 Schedule 5.1.2

 Subsidiaries 
  

			
	Direct Subsidiaries	  	 
		
	 Name

	  	 Jurisdiction of Formation

	RI Finance, Inc.	  	Delaware
		
	Respironics International, Inc.	  	Delaware; branch in France
		
	Swiftmed Corp.	  	Georgia
		
	Respironics France	  	France
		
	Respironics Colorado, Inc.	  	Colorado
		
	Respironics Novametrix, LLC	  	Delaware
	Respironics Overseas, Inc.	  	Delaware
	Respironics California, Inc.	  	California
	Respironics New Jersey, Inc.	  	New Jersey
	Fiberoptic Medical Products, Inc.	  	Pennsylvania
	Healthdyne U.K. Limited	  	United Kingdom
	Respironics Brussels S.A.	  	Belgium
	Respironics Sleep and Respiratory Research Foundation	  	Pennsylvania (non-profit)
	Western Biomedical Technologies Limited	  	Ireland
	Respironics Profile, Inc.	  	Delaware
		
	Indirect Subsidiaries	  	 
		
	 Name

	  	 Jurisdiction of Formation

	Subsidiaries of RI Finance, Inc.	  	 
	 RI Licensing, Inc.
	  	Delaware
	 RI Licensing has no subsidiaries
	  	 
	 RI Assurance, Inc.
	  	Vermont
	 Subsidiaries of RI Assurance, Inc.:
	  	 
	 RI Trading, LLC
	  	Delaware
	 RIC Investments, LLC
	  	Delaware
	 Respironics (HK) Ltd.
	  	Hong Kong
	 Subsidiaries of Respironics (HK) Ltd.:
	  	 
	 RCM Manufacturing
	  	Philippines
		
	 Sigma Manufacturing Ltd.
	  	Hong Kong
		
	 Wegot Investments Ltd.
	  	Hong Kong
		
	 Respironics Medical Products (Shenzhen) Ltd.
	  	PRC
		
	 Respironics Technotrend Ltd.
	  	Hong Kong

  

 B-6 

			
	 Subsidiaries of Western Biomedical Technologies Limited
	  	 
	 Respironics (Ireland) Limited
	  	Ireland
	 Caradyne (R&D) Limited (a subsidiary of
	  	Ireland
	 Respironics (Ireland) Limited)
	  	 
		
	Subsidiaries of Respironics Colorado, Inc.	  	 
	 Respironics Deutschland GmbH & Co. KG (Respironics
	  	Germany
	 Colorado is the limited partner of Respironics
	  	 
	 Deutschland GmbH & Co. KG; the general partner is
	  	 
	 Respironics Verwaltungsgesellschaft mbH); Respironics
	  	 
	 Colorado, Inc. is the sole shareholder of Respironics
	  	 
	 Verwaltungsgesellschaft
	  	 
		
	Subsidiaries of Respironics International, Inc.	  	 
	 Respironics International Global Enterprises, Inc.
	  	Delaware; branches
	 	  	in Japan, Spain and
	 	  	United Kingdom
	 Respironics Netherlands B.V.
	  	Netherlands
	 Fuji Respironics Kabushiki Kaisha (now wholly-owned by Respironics Netherlands B.V.)
	  	Japan
	 Fuji Respironics Kabushiki Kaisha has one subsidiary - Respicare Hokkaido.
	  	Japan
		
	Subsidiaries of Respironics Novametrix, LLC	  	 
	 Children’s Medical Ventures, LLC
	  	Delaware
	 Emertech, S.A.R.L. (inactive)
	  	France
		
	Subsidiaries of Respironics Profile, Inc.	  	 
	 Respironics UK Holding Company Limited
	  	United Kingdom
	 Subsidiaries of Respironics UK Holding Company Limited
	  	 
	 Profile Therapeutics Ltd.
	  	United Kingdom
	 Subsidiaries of Profile Therapeutics Ltd.
	  	 
	 Profile Drug Delivery Ltd.
	  	United Kingdom
	 Profile Pharma Ltd.
	  	United Kingdom
	 Profile Therapeutics, Inc.
	  	Massachusetts
	 Medic-Aid Employee Benefit Trust Ltd.
	  	United Kingdom
	 P.B. North America Ltd. (50% owned by
	  	United Kingdom
	 Profile Therapeutics Ltd.)
	  	 
	 Profile Respiratory Systems Ltd.
	  	United Kingdom
	 Middlesign Ltd. (subsidiary of Profile
	  	United Kingdom
	 Respiratory Systems Ltd.)
	  	 
	 Normed A/S (Middlesign Ltd. owns 15% of the ownership interests of Normed A/S)
	  	Norway

  

 B-7 

 Benner and Associates, Inc. – Respironics, Inc. has an option (the “Option”) to acquire all of the
outstanding capital stock of Benner and Associates, Inc. (“BAI”). BAI is a distributor of medical products and distributes products of Respironics, Inc. The Option is exercisable at any time and remains in effect until October 1, 2005. In
connection with the Option, Respironics, Inc. holds a proxy from the sole shareholder of BAI to vote all the outstanding capital stock of BAI. For purposes of the Loan Documents BAI will not be considered a Subsidiary or Affiliate of Respironics,
Inc. 
  

 B-8 

  
 Schedule 5.1.6

 Litigation 
  
 On March 5, 2004, Respironics filed a lawsuit against Invacare in federal court alleging that Invacare’s marketing and sale of the Polaris EX(TM) CPAP with SoftX(TM)
violates certain patents of Respironics. 
  
 On August 6, 2004, Invacare filed a
lawsuit against Respironics in federal court alleging that Respironics has engaged in anti-competitive practices in the sale and distribution of certain products for the treatment of sleep apnea. Respironics believes that these allegations are
unfounded and intends to vigorously defend itself in this lawsuit. 
  

 B-9 

  
 Schedule 5.1.11

  
 Taxes 
  
 None. 
  

 B-10 

  
 Schedule 5.1.14

 Patents, Trademarks, Copyrights, Licenses, etc. 
  
 The following patents have been identified by another company as being potentially relevant to existing Respironics products 
  

									
	 Patent No.

	  	 Issue Date

	  	 Inventor

	  	 Title

	  	 Owner/
Licensor

	5,632,272	  	May 27, 1997	  	Diab et al.	  	Signal Processing Apparatus	  	Masimo Corp.
					
	6,002,952	  	Dec. 14, 1999	  	Diab et al.	  	Signal Processing Apparatus and Method	  	Masimo Corp.
					
	6,157,850	  	Dec. 5, 2000	  	Diab et al.	  	Signal Processing Apparatus	  	Masimo Corp.
					
	Re. 35,339	  	Oct. 1, 1996	  	Rapoport	  	Method and Apparatus for the Treatment of Obstructive Sleep Apnea	  	Tyco Int’l.
					
	5,856,173	  	Feb. 2, 1999	  	Froehlich	  	Bilevel CPAP System With Waveform Control for Both IPAP and EPAP	  	Sunrise Medical HHG, Inc.
					
	5,578,115	  	Nov. 26, 1996	  	Cole	  	Molecular Sieve Container for Oxygen Concentrator	  	DiVilbiss Health Care, Inc.
					
	5,503,146	  	April 2, 1996	  	Froehlich et al.	  	Standby Control for CPAP Apparatus	  	DiVilbiss Health Care, Inc.
					
	5,540,234	  	July 30, 1996	  	Lalui	  	Peak Flow Meters	  	Vitalograph (Ireland) Ltd.

  
 Respironics believes that the patents
listed on this Schedule 5.1.14. are not infringed, not valid, not enforceable, or a combination thereof. 
  

 B-11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]