Document:

Exhibit 4.1

 

CERTIFICATE OF  AMENDMENT

OF

AMENDED AND RESTATED CERTIFICATE OF 
INCORPORATION

OF

CROMPTON CORPORATION

(formerly CK Witco
Corporation, incorporated on May 27, 1999)

 

Adopted in accordance
with the provisions

of Section 242 of the Delaware General Corporation Law

 

The undersigned, being
the Secretary of Crompton Corporation (the “Corporation”), a corporation
organized and existing under and by virtue of the Delaware General Corporation
Law (the “DGCL”), does hereby certify:

 

1.                                       That
the Amended and Restated Certificate of Incorporation of the Corporation is
hereby amended by changing Article I thereof so that, as amended, said Article I
shall read in its entirety as follows:

 

ARTICLE I

 

The name of the
corporation (which is hereinafter referred to as the “Corporation”) is Chemtura
Corporation.

 

2.                                       That
the foregoing amendment of the Amended and Restated Certificate of
Incorporation of the Corporation has been duly approved and adopted in
accordance with Section 242 of the DGCL.

 

3.                                       That
the Board of Directors of the Corporation duly adopted resolutions setting
forth the foregoing amendment, declaring said amendment to be advisable and
referring such amendment to the stockholders of the Corporation for
consideration thereof.

 

4.                                       That
the foregoing amendment has been duly approved and adopted in accordance with
the provisions of the DGCL by the stockholders of the Corporation at a special
meeting held on July 1, 2005.

 

IN WITNESS WHEREOF, the
undersigned has caused this Certificate to be signed July 1, 2005.

 

	
   

  	
  CROMPTON
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Barry J. Shainman

  
	
   

  	
  Name: 

  	
  Barry J.
  Shainman

  
	
   

  	
  Title:

  	
  SecretaryExhibit 10.1

 

EXECUTION COPY

 

 

U.S. $600,000,000

 

 

CREDIT AGREEMENT

 

Dated as of July 1, 2005

 

Among

 

CHEMTURA
CORPORATION

as  Borrower

 

and

 

THE INITIAL
LENDERS NAMED HEREIN

as  Initial  Lenders

 

and

 

CITIBANK, N.A.

as  Agent

 

and

 

BANK OF AMERICA,
N.A.

as  Syndication  Agent

 

and

 

CITIGROUP GLOBAL
MARKETS INC.

and

 

BANC OF AMERICA
SECURITIES LLC

as  Joint  Lead  Arrangers

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  1.01. Certain Defined Terms

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 1.02. Computation of
  Time Periods; Other Definitional Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  1.03. Accounting Terms

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  2.01. The Advances and
  Letters of Credit

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  2.02. Making the Advances

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.03. Issuance of
  and Drawings and Reimbursement Under Letters of Credit

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.04. Fees

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  2.05. Termination or Reduction of the Commitments

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  2.06. Repayment of Advances and Letter of Credit Drawings

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  2.07. Interest on Advances

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.08. Interest
  Rate Determination

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.09. Optional
  Conversion of Advances

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.10. Prepayments
  of Advances

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.11. Increased Costs

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.12. Illegality

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.13. Payments and Computations

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.14. Taxes

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.15. Sharing of
  Payments, Etc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.16. Evidence of Debt

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.17. Use of Proceeds

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.18. Increase in
  the Aggregate Commitments

  	
   

  

 

 

	
  ARTICLE
  III

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.01. Conditions Precedent to
  Effectiveness of Section 2.01

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.02. Initial Advance
  to Each Designated Subsidiary

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.03. Conditions
  Precedent to Each Borrowing, Issuance and Commitment Increase.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.04.
  Determinations Under Section 3.01 and 3.02

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IV

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 4.01. Representations and Warranties of the Company

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  V

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.01. Affirmative
  Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.02. Negative Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.03. Financial Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VI

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 6.01. Events of Default

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 6.02. Actions in Respect
  of the Letters of Credit upon Default

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VII

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 7.01. Unconditional Guaranty

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 7.02. Guaranty Absolute

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 7.03. Waivers and
  Acknowledgments

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 7.04. Subrogation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 7.05. Subordination

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 7.06. Guaranty
  Supplements

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 7.07. Continuing
  Guaranty; Assignments

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 8.01. Authorization and Action

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 8.02. Agent’s Reliance,
  Etc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 8.03. Citibank and
  Affiliates

  	
   

  

 

ii

 

	
   

  	
  SECTION 8.04. Lender Credit
  Decision

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 8.05. Indemnification

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 8.06. Successor Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 8.07. Sub-Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 8.08. Other Agents.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IX

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.01. Amendments, Etc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.02. Notices, Etc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.03. No Waiver;
  Remedies

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.04. Costs and
  Expenses

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.05. Right of Set-off

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.06. Binding Effect

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.07. Assignments and
  Participations

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  9.08. Confidentiality

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  9.09. Designated Subsidiaries

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  9.10. Governing Law

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  9.11. Execution in Counterparts

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  9.12. Judgment

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  9.13. Jurisdiction, Etc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  9.14. Substitution of Currency

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  9.15. No Liability of the Issuing Banks

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  9.16. Patriot Act Notice

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  9.17. Power of Attorney

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  9.18. Waiver of Jury Trial

  	
   

  

 

iii

 

	
  Schedules

  
	
   

  
	
  Schedule
  I - List of Commitments and Applicable Lending Offices

  
	
   

  
	
  Schedule II –
  List of Subsidiary Guarantors

  
	
   

  
	
  Schedule 2.01(b) – Letter of
  Credit

  
	
   

  
	
  Schedule 3.01(b)
  - Disclosed Litigation

  
	
   

  
	
  Schedule 4.01(b)
  – Loan Parties

  
	
   

  
	
  Schedule 4.01(c)
  – Subsidiaries of Loan Parties

  
	
   

  
	
  Schedule 4.01(i)
  – Disclosed Litigation

  
	
   

  
	
  Schedule 5.02(a)
  - Existing Liens

  
	
   

  
	
  Schedule 5.02(d)
  - Existing Debt

  
	
   

  
	
  Schedule 5.02(g)
  - Existing Investments

  

 

 

	
  Exhibits

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit
  A

  	
  -

  	
  Form
  of Note

  
	
   

  	
   

  	
   

  
	
  Exhibit
  B

  	
  -

  	
  Form
  of Notice of Borrowing

  
	
   

  	
   

  	
   

  
	
  Exhibit
  C

  	
  -

  	
  Form
  of Assignment and Acceptance

  
	
   

  	
   

  	
   

  
	
  Exhibit
  D

  	
  -

  	
  Form
  of Opinion of Counsel for the Borrower

  
	
   

  	
   

  	
   

  
	
  Exhibit
  E

  	
  -

  	
  Form
  of Designation Agreement

  
	
   

  	
   

  	
   

  
	
  Exhibit F

  	
  -

  	
  Form of Guaranty
  Supplement

  

 

iv

 

CREDIT AGREEMENT

 

Dated as of July 1, 2005

 

CHEMTURA CORPORATION, a Delaware corporation (the “Company”),
the Subsidiary Guarantors (as hereinafter defined), the banks, financial
institutions and other institutional lenders (the “Initial Lenders”) and
issuers of letters of credit (“Initial Issuing Banks”) listed on
Schedule I hereto, and CITIBANK, N.A. (“Citibank”), as agent (the “Agent”)
for the Lenders (as hereinafter defined), agree as follows:

 

ARTICLE I

 

DEFINITIONS AND ACCOUNTING TERMS

 

SECTION 1.01.  Certain
Defined Terms. As used in this Agreement, the following terms shall have
the following meanings (such meanings to be equally applicable to both the
singular and plural forms of the terms defined):

 

“Acquisition” means the Company’s acquisition
of the Great Lakes.

 

“Advance” means an advance by a Lender to any
Borrower as part of a Borrowing and refers to a Base Rate Advance or a
Eurocurrency Rate Advance (each of which shall be a “Type” of Advance).

 

“Affiliate” means, as to any Person, any other
Person that, directly or indirectly, controls, is controlled by or is under
common control with such Person or is a director or officer of such
Person.  For purposes of this definition,
the term “control” (including the terms “controlling”, “controlled by” and “under
common control with”) of a Person means the possession, direct or indirect, of
the power to vote 10% or more of the Voting Stock of such Person or to direct
or cause the direction of the management and policies of such Person, whether
through the ownership of Voting Stock, by contract or otherwise.

 

“Agent’s Account” means (a) in the case of
Advances denominated in Dollars, the account of the Agent maintained by the
Agent at Citibank at its office at Two Penns Way, New Castle, Delaware  19720, Account No. 36852248,
Attention:  Bank Loan Syndications,
(b) in the case of Advances denominated in any Committed Currency, the
account of the Sub-Agent designated in writing from time to time by the Agent
to the Company and the Lenders for such purpose and (c) in any such case,
such other account of the Agent as is designated in writing from time to time
by the Agent to the Company and the Lenders for such purpose.

 

“Applicable Lending Office” means, with respect
to each Lender, such Lender’s Domestic Lending Office in the case of a Base
Rate Advance and such Lender’s Eurocurrency Lending Office in the case of a
Eurocurrency Rate Advance.

 

“Applicable Margin” means as of any date, a
percentage per annum determined by reference to the Public Debt Rating in
effect on such date as set forth below:

 

	
  Public Debt Rating

  S&P/Moody’s

  	
   

  	
  Applicable Margin for

  Base Rate Advances

  	
   

  	
  Applicable Margin for

  Eurocurrency Rate Advances

  	
   

  
	
  Level 1

  BBB or Baa2 or above

  	
   

  	
  0.000

  	
  %

  	
  0.500

  	
  %

  
	
  Level 2

  BBB- or Baa3

  	
   

  	
  0.000

  	
  %

  	
  0.600

  	
  %

  
	
  Level 3

  BB+ and Ba1

  	
   

  	
  0.000

  	
  %

  	
  0.800

  	
  %

  
	
  Level 4

  BB or Ba2

  	
   

  	
  0.250

  	
  %

  	
  1.250

  	
  %

  
	
  Level 5

  Lower than Level 4

  	
   

  	
  0.600

  	
  %

  	
  1.600

  	
  %

  

 

 

“Applicable Percentage” means, as of any date a
percentage per annum determined by reference to the Public Debt Rating in
effect on such date as set forth below:

 

	
  Public Debt Rating

  S&P/Moody’s

  	
   

  	
  Applicable

  Percentage

  	
   

  
	
  Level 1

  BBB or Baa2 or above

  	
   

  	
  0.125

  	
  %

  
	
  Level 2

  BBB- or Baa3

  	
   

  	
  0.150

  	
  %

  
	
  Level 3

  BB+ and Ba1

  	
   

  	
  0.200

  	
  %

  
	
  Level 4

  BB or Ba2

  	
   

  	
  0.250

  	
  %

  
	
  Level 5

  Lower than Level 4

  	
   

  	
  0.4000

  	
  %

  

 

“Assignment and Acceptance” means an assignment
and acceptance entered into by a Lender and an Eligible Assignee, and accepted
by the Agent, in substantially the form of Exhibit C hereto.

 

“Assuming Lender” has the meaning specified in
Section 2.18(d).

 

“Assumption Agreement” has the meaning
specified in Section 2.18(d)(ii).

 

“Available Amount”
of any Letter of Credit means, at any time, the maximum amount available to be
drawn under such Letter of Credit at such time (assuming compliance at such
time with all conditions to drawing).

 

“Bankruptcy Law”
means any proceeding of the type referred to in Section 6.01(e) or Title
11, U.S. Code, or any similar foreign, federal or state law for the relief of
debtors.

 

“Base Rate” means a fluctuating interest rate
per annum in effect from time to time, which rate per annum shall at all times
be equal to the highest of:

 

(a)           the rate
of interest announced publicly by Citibank in New York, New York,
from time to time, as Citibank’s base rate;

 

(b)           the sum (adjusted
to the nearest 1/4 of 1% or, if there is no nearest 1/4 of 1%, to the next
higher 1/4 of 1%) of (i) 1⁄2 of 1% per annum, plus (ii) the rate
obtained by dividing (A) the latest three-week moving average of secondary
market morning offering rates in the United States for three-month certificates
of deposit of major United States money market banks, such three-week moving
average (adjusted to the basis of a year of 360 days) being determined weekly
on each Monday (or, if such day is not a Business Day, on the next succeeding
Business Day) for the three-week period ending on the previous Friday by
Citibank on the basis of such rates reported by certificate of deposit dealers
to and published by the Federal Reserve Bank of New York or, if such
publication shall be suspended or terminated, on the basis of quotations for
such rates received by Citibank from three New York certificate of deposit
dealers of recognized standing

 

2

 

selected
by Citibank, by (B) a percentage equal to 100% minus the average of the
daily percentages specified during such three-week period by the Board of
Governors of the Federal Reserve System (or any successor) for determining the
maximum reserve requirement (including, but not limited to, any emergency,
supplemental or other marginal reserve requirement) for Citibank with respect
to liabilities consisting of or including (among other liabilities) three-month
U.S. dollar non-personal time deposits in the United States, plus
(iii) the average during such three-week period of the annual assessment
rates estimated by Citibank for determining the then current annual assessment
payable by Citibank to the Federal Deposit Insurance Corporation (or any
successor) for insuring U.S. dollar deposits of Citibank in the United States;
and

 

(c)           1⁄2 of one
percent per annum above the Federal Funds Rate.

 

“Base Rate Advance” means an Advance
denominated in Dollars that bears interest as provided in
Section 2.07(a)(i).

 

“Borrowers” means, collectively, the Company
and the Designated Subsidiaries from time to time.

 

“Borrowing” means a borrowing consisting of
simultaneous Advances of the same Type made by each of the Lenders.

 

“Borrowing
Minimum” means, in respect of Advances denominated in Dollars, $5,000,000,
in respect of Advances denominated in any Committed Currency, the approximate
Equivalent of $5,000,000 in such Committed Currency, rounded to the nearest
1,000,000 units of such Committed Currency.

 

“Borrowing
Multiple” means, in respect of Advances denominated in Dollars, $1,000,000,
in respect of Advances denominated in any Committed Currency, the approximate
Equivalent of $1,000,000 in such Committed Currency, rounded to the nearest
100,000 units of such Committed Currency.

 

“Business Day” means a day of the year on which
banks are not required or authorized by law to close in New York City and,
if the applicable Business Day relates to any Eurocurrency Rate Advances, on
which dealings are carried on in the London interbank market and banks are open
for business in London and in the country of issue of the currency of such
Eurocurrency Rate Advance (or, in the case of an Advance denominated in Euro,
on which the Trans-European Automated Real-Time Gross Settlement Express
Transfer (TARGET) System is open).

 

“Collateral Documents”
means each of the collateral documents, instruments and agreements delivered
pursuant to Section 5.01(j), and each other agreement that creates or purports
to create a Lien in favor of the Agent for the benefit of the Lenders.

 

“Commitment” means a Revolving Credit
Commitment or a Letter of Credit Commitment.

 

“Commitment Date” has the meaning specified in
Section 2.18(b).

 

“Commitment Increase” has the meaning specified
in Section 2.18(a).

 

“Committed Currencies” means lawful currency of
the United Kingdom of Great Britain and Northern Ireland, lawful currency of
Canada, lawful currency of The Swiss Federation, lawful currency of Japan and
Euros.

 

“Company Guaranty”
means the guaranty of the Company set forth in Article VII.

 

“Company Information” has the meaning specified
in Section 9.08.

 

“Consolidated” refers to the consolidation of
accounts in accordance with GAAP.

 

3

 

“Convert”, “Conversion” and “Converted”
each refers to a conversion of Advances of one Type into Advances of the other
Type pursuant to Section 2.08, 2.09 or 2.12.

 

“Covenant Debt”
means, at any date of determination, Debt of the Company and its Subsidiaries
of the types included in clauses (a), (b), (c), (d), (e), (g), (i) and (j) of
the definition of “Debt”; provided, however, that Covenant Debt
(i) shall not include obligations under Hedge Agreements other than Hedge
Agreements related to interest rates, which included Hedge Agreement
obligations shall be valued at the unrealized net loss position, if any, of the
Company and/or its Subsidiaries thereunder on a marked to market basis of such
Hedge Agreements as of such date of determination, (ii) shall not include
obligations in respect of the $50,000,000 settlement entered into with the U.S.
Department of Justice, the $7,000,000 settlement entered into with the
Commissioner of Competition and the Attorney General of Canada, and the
$97,000,000 settlement entered into to resolve three consolidated direct class
action lawsuits, each as described in the Company’s report on Form 10-Q filed
with the SEC with respect to the Company’s fiscal quarter ended March 31, 2005,
and (iii) shall not include Guaranteed Debt with respect to Debt of the Company
and its Subsidiaries of the types included in clauses (f), (h) and (k) of the
definition of “Debt”.

 

“Debt” of any Person means, without
duplication, (a) all indebtedness of such Person for borrowed money,
(b) all obligations of such Person for the deferred purchase price of property
or services (other than trade payables not overdue by more than 90 days
incurred in the ordinary course of such Person’s business), (c) all
obligations of such Person evidenced by notes, bonds, debentures or other
similar instruments, (d) all obligations of such Person created or arising
under any conditional sale or other title retention agreement with respect to
property acquired by such Person (even though the rights and remedies of the
seller or lender under such agreement in the event of default are limited to
repossession or sale of such property), (e) all obligations of such Person
as lessee under leases that have been or should be, in accordance with GAAP,
recorded as capital leases, (f) all obligations, contingent or otherwise,
of such Person in respect of acceptances, letters of credit or similar
extensions of credit, (g) all obligations of such Person in respect of
Hedge Agreements, (h) all financings of the type described in Section
5.02(a)(v), (i) all obligations of such Person under any lease that is treated
as an operating lease for financial accounting purposes and a financing lease
for tax purposes (i.e., a “synthetic lease”), (j) all Debt of others referred
to in clauses (a) through (i) above or clause (k) below
(collectively, “Guaranteed Debt”) guaranteed directly or indirectly in
any manner by such Person, or in effect guaranteed directly or indirectly by
such Person through an agreement (1) to pay or purchase such Guaranteed
Debt or to advance or supply funds for the payment or purchase of such
Guaranteed Debt, (2) to purchase, sell or lease (as lessee or lessor)
property, or to purchase or sell services, primarily for the purpose of
enabling the debtor to make payment of such Guaranteed Debt or to assure the
holder of such Guaranteed Debt against loss, (3) to supply funds to or in
any other manner invest in the debtor (including any agreement to pay for
property or services irrespective of whether such property is received or such
services are rendered) or (4) otherwise to assure a creditor against loss,
and (k) all Debt referred to in clauses (a) through (j) above
(including Guaranteed Debt) secured by (or for which the holder of such Debt
has an existing right, contingent or otherwise, to be secured by) any Lien on
property (including, without limitation, accounts and contract rights) owned by
such Person, even though such Person has not assumed or become liable for the
payment of such Debt.

 

“Default” means any Event of Default or any
event that would constitute an Event of Default but for the requirement that
notice be given or time elapse or both.

 

“Designated Litigation Liabilities” means all
criminal and civil judgments rendered against, and all civil and criminal
settlements entered into, the Company and any of its Subsidiaries in connection
with the antitrust investigations and related matters described under the
heading “ANTITRUST INVESTIGATION AND RELATED MATTERS” set forth in the Company’s
Form 10-Q filed with the SEC in respect of the Company’s fiscal quarter ended
March 31, 2005 and all costs and expenses related thereto.

 

4

 

“Designated Subsidiary” means any direct or
indirect Wholly-Owned Subsidiary of the Company organized under the laws of a
jurisdiction other than the United States of America or a political subdivision
thereof designated for borrowing privileges under this Agreement pursuant to
Section 9.09.

 

“Designation Agreement” means, with respect to
any Designated Subsidiary, an agreement in the form of Exhibit D hereto signed
by such Designated Subsidiary and the Company.

 

“Disclosed Litigation” has the meaning
specified in Section 3.01(b).

 

“Dollars” and the “$” sign each means
lawful currency of the United States of America.

 

“Domestic Lending Office” means, with respect
to any Lender, the office of such Lender specified as its “Domestic Lending
Office” opposite its name on Schedule I hereto or in the Assumption
Agreement or the Assignment and Acceptance pursuant to which it became a
Lender, or such other office of such Lender as such Lender may from time to
time specify to the Company and the Agent.

 

“EBITDA” means, for any period, net income (or
net loss) (1) plus, to the extent included the calculation of net income
of such Person for such period in accordance with GAAP, the sum of
(a) Interest Expense, (b) income tax expense, (c) depreciation
expense, (d) amortization expense, (e) charges related to restructuring,
asset impairment or other extraordinary items, (f) charges for legal and other
expenses in connection with Designated Litigation Liabilities in an aggregate
amount not to exceed $20,000,000, (g) the amount of all Designated Litigation
Liabilities incurred for such period in excess of $1,000,000 in the aggregate
to the extent that the same were deducted in arriving at net income (or net
loss) for such period and are otherwise included in Covenant Debt at such time,
(h)charges (x) related to merger expenses related to the Acquisition (other
than as provided in clause (y) below) or acquisitions and consolidations which
occur after the Effective Date in an aggregate amount not to exceed $50,000,000
and (y) taken by Great Lakes relating to the change of control which has
occurred because of the Acquisition and other merger related costs, (i) any
losses from sales of assets other than in the ordinary course of business and
(j) the amount of all fees, expenses and premiums incurred in connection with
the execution and delivery of this Agreement, (2) minus (a) cash
payments for previously reserved restructuring charges and (b) to the extent
included in the calculation of net income of such Person for such period in
accordance with GAAP, any gains from sales of assets other than in the ordinary
course of business.  For the purposes of calculating EBITDA for
any period, if during such period the Company or any Subsidiary shall have made
an acquisition, EBITDA for such period shall be calculated after giving pro
forma effect thereto as if such acquisition occurred on the first day of such
period.  Pursuant to the forgoing, the
Consolidated EBITDA of the Company and its Subsidiaries for the fiscal quarter
ended September 30, 2004 is $97,100,000, for the fiscal quarter ended December
31, 2004 is $74,700,000 and for the fiscal quarter ended March 31, 2005 is
$139,400,000.

 

“Effective Date” has the meaning specified in
Section 3.01.

 

“Eligible Assignee” means (i) a Lender;
(ii) an Affiliate of a Lender; and (iii) any other Person approved by
the Agent, each Issuing Bank and, unless an Event of Default has occurred and
is continuing at the time any assignment is effected in accordance with Section
9.07, the Company, such approval not to be unreasonably withheld or delayed; provided,
however, that neither the Company nor an Affiliate of the Company shall
qualify as an Eligible Assignee.

 

“Environmental Action” means any action, suit,
demand, demand letter, claim, notice of non-compliance or violation, notice of
liability or potential liability, investigation, proceeding, consent order or
consent agreement relating in any way to any Environmental Law, Environmental
Permit or Hazardous Materials or arising from alleged injury or threat of
injury to health, safety or the environment, including, without limitation,
(a) by any governmental or regulatory authority for enforcement, cleanup, removal,
response, remedial or other actions or damages and (b) by any governmental
or regulatory authority or any third party for damages, contribution,
indemnification, cost recovery, compensation or injunctive relief.

 

5

 

“Environmental Law” means any federal, state,
local or foreign statute, law, ordinance, rule, regulation, code, order,
judgment, decree or judicial or agency interpretation, policy or guidance
relating to pollution or protection of the environment, health, safety or
natural resources, including, without limitation, those relating to the use,
handling, transportation, treatment, storage, disposal, release or discharge of
Hazardous Materials.

 

“Environmental Permit” means any permit,
approval, identification number, license or other authorization required under
any Environmental Law.

 

“Equivalent” (i) in Dollars of any Committed
Currency on any date, means the quoted spot rate at which the Sub-Agent’s
principal office in London offers to exchange Dollars for such Committed
Currency in London at or prior to 11:00 A.M. (London time) on such date and
(ii) in any Committed Currency of Dollars on any date, means the quoted spot
rate at which the Sub-Agent’s principal office in London offers to exchange
such Committed Currency for Dollars in London at or prior to 11:00 A.M. (London
time) on such date.

 

“ERISA” means the Employee Retirement Income
Security Act of 1974, as amended from time to time, and the regulations
promulgated and rulings issued thereunder.

 

“ERISA Affiliate” means any Person that for
purposes of Title IV of ERISA is a member of the Company’s controlled
group, or under common control with the Company, within the meaning of
Section 414 of the Internal Revenue Code.

 

“ERISA Event” means (a) (i) the occurrence
of a reportable event, within the meaning of Section 4043 of ERISA, with
respect to any Plan unless the 30-day notice requirement with respect to such
event has been waived by the PBGC, or (ii) the requirements of subsection (1)
of Section 4043(b) of ERISA (without regard to subsection (2) of such Section)
are met with respect to a contributing sponsor, as defined in Section
4001(a)(13) of ERISA, of a Plan, and an event described in paragraph (9),
(10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably expected to
occur with respect to such Plan within the following 30 days; (b) the
application for a minimum funding waiver with respect to a Plan; (c) the
provision by the administrator of any Plan of a notice of intent to terminate
such Plan pursuant to Section 4041(a)(2) of ERISA (including any such
notice with respect to a plan amendment referred to in Section 4041(e) of
ERISA); (d) the cessation of operations at a facility of the Company or
any ERISA Affiliate in the circumstances described in Section 4062(e) of
ERISA; (e) the withdrawal by the Company or any ERISA Affiliate from a
Multiple Employer Plan during a plan year for which it was a substantial
employer, as defined in Section 4001(a)(2) of ERISA; (f)  the
conditions for the imposition of a lien under Section 302(f) of ERISA
shall have been met with respect to any Plan; (g) the adoption of an
amendment to a Plan requiring the provision of security to such Plan pursuant
to Section 307 of ERISA; or (h) the institution by the PBGC of
proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the
occurrence of any event or condition described in Section 4042 of ERISA
that constitutes grounds for the termination of, or the appointment of a
trustee to administer, a Plan.

 

“EURIBO Rate” means,
for any Interest Period, the rate appearing on Page 248 of the Moneyline
Telerate Service (or on any
successor or substitute page of such Service, or any successor to or substitute
for such Service, providing rate quotations comparable to those currently
provided on such page of such Service, as determined by the Agent from time to
time for purposes of providing quotations of interest rates applicable to
deposits in Euro by reference to the Banking Federation of the European Union
Settlement Rates for deposits in Euro) at approximately 10:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period, as
the rate for deposits in Euro with a maturity comparable to such Interest
Period or, if for any reason such rate is not available, the average
(rounded upward to the nearest whole multiple of 1/16 of 1% per annum, if such
average is not such a multiple) of the respective rates per annum at which
deposits in Euros are offered by the principal office of each of the Reference
Banks in London, England to prime banks in the London interbank market at
11:00 A.M. (London time) two Business Days before the first day of such
Interest Period in an amount substantially equal to such

 

6

 

Reference
Bank’s Eurocurrency Rate Advance comprising part of such Borrowing to be
outstanding during such Interest Period and for a period equal to such Interest
Period (subject, however, to the provisions of Section 2.08).

 

“Euro” means the lawful currency of the European Union as constituted
by the Treaty of Rome which established the European Community, as such treaty
may be amended from time to time and as referred to in the EMU legislation.

 

“Eurocurrency Lending Office” means, with
respect to any Lender, the office of such Lender specified as its “Eurocurrency
Lending Office” opposite its name on Schedule I hereto or in the
Assumption Agreement or the Assignment and Acceptance pursuant to which it
became a Lender (or, if no such office is specified, its Domestic Lending
Office), or such other office of such Lender as such Lender may from time to
time specify to the Company and the Agent.

 

“Eurocurrency Liabilities” has the meaning
assigned to that term in Regulation D of the Board of Governors of the
Federal Reserve System, as in effect from time to time.

 

“Eurocurrency Rate” means, for any Interest
Period for each Eurocurrency Rate Advance comprising part of the same
Borrowing, an interest rate per annum equal to the rate per annum obtained by
dividing (a)(i) in the case of any Advance denominated in Dollars or any
Committed Currency other than Euro, the rate per annum (rounded upward to the
nearest whole multiple of 1/16 of 1% per annum) appearing on Moneyline Telerate
Markets Page 3750 (or any successor page) as the London interbank offered rate
for deposits in Dollars or the applicable Committed Currency at approximately
11:00 A.M. (London time) two Business Days prior to the first day of such
Interest Period for a term comparable to such Interest Period or, if for any
reason such rate is not available, the average (rounded upward to the
nearest whole multiple of 1/16 of 1% per annum, if such average is not such a
multiple) of the rate per annum at which deposits in Dollars or the applicable
Committed Currency is offered by the principal office of each of the Reference
Banks in London, England to prime banks in the London interbank market at
11:00 A.M. (London time) two Business Days before the first day of such
Interest Period in an amount substantially equal to such Reference Bank’s
Eurocurrency Rate Advance comprising part of such Borrowing to be outstanding
during such Interest Period and for a period equal to such Interest Period or,
(ii) in the case of any Advance denominated in Euros, the EURIBO Rate by
(b) a percentage equal to 100% minus the Eurocurrency Rate Reserve
Percentage for such Interest Period.  If
the Moneyline Telerate Markets Page 3750 (or any successor page) is unavailable,
the Eurocurrency Rate for any Interest Period for each Eurocurrency Rate
Advance comprising part of the same Borrowing shall be determined by the Agent
on the basis of applicable rates furnished to and received by the Agent from
the Reference Banks two Business Days before the first day of such Interest
Period, subject, however, to the provisions of Section 2.08.

 

“Eurocurrency Rate Advance” means an Advance
denominated in Dollars or a Committed Currency that bears interest as provided
in Section 2.07(a)(ii).

 

“Eurocurrency Rate Reserve Percentage” for any
Interest Period for all Eurocurrency Rate Advances comprising part of the same
Borrowing means the reserve percentage applicable two Business Days before the
first day of such Interest Period under regulations issued from time to time by
the Board of Governors of the Federal Reserve System (or any successor) for
determining the maximum reserve requirement (including, without limitation, any
emergency, supplemental or other marginal reserve requirement) for a member
bank of the Federal Reserve System in New York City with respect to
liabilities or assets consisting of or including Eurocurrency Liabilities (or
with respect to any other category of liabilities that includes deposits by
reference to which the interest rate on Eurocurrency Rate Advances is
determined) having a term equal to such Interest Period.

 

“Events of Default” has the meaning specified
in Section 6.01.

 

7

 

“Federal Funds Rate” means, for any period, a
fluctuating interest rate per annum equal for each day during such period to
the weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers, as
published for such day (or, if such day is not a Business Day, for the next
preceding Business Day) by the Federal Reserve Bank of New York, or, if
such rate is not so published for any day that is a Business Day, the average
of the quotations for such day on such transactions received by the Agent from
three Federal funds brokers of recognized standing selected by it.

 

“GAAP” has the meaning specified in
Section 1.03.

 

“Great Lakes”
means Great Lakes Chemical Corporation, a Delaware corporation.

 

“Guaranteed Hedge
Agreement” means any Hedge Agreement permitted under this Agreement entered
into by and between any Borrower and any Hedge Bank.

 

“Guaranteed
Obligations” has the meaning specified in Section 7.01.

 

“Guaranties” means
the Company Guaranty and the Subsidiary Guaranty.

 

“Guarantors” means
the Company and the Subsidiary Guarantors.

 

“Guaranty Supplement”
has the meaning specified in Section 7.06.

 

“Hazardous Materials” means (a) petroleum and
petroleum products, byproducts or breakdown products, radioactive materials,
asbestos-containing materials, polychlorinated biphenyls and radon gas and (b)
any other chemicals, materials or substances designated, classified or
regulated as hazardous or toxic or as a pollutant or contaminant under any
Environmental Law.

 

“Hedge Agreements” means interest rate swap, cap
or collar agreements, interest rate future or option contracts, currency swap
agreements, currency future or option contracts and other similar agreements.

 

“Hedge Bank” means any Lender or Issuing Bank
or an Affiliate of a Lender or Issuing Bank in its capacity as a party to a
Guaranteed Hedge Agreement.

 

“Increase Date” has the meaning specified in
Section 2.18(a).

 

“Increasing Lender” has the meaning specified
in Section 2.18(b).

 

“Information Memorandum” means the information
memorandum dated May 6, 2005 used by the Agent in connection with the
syndication of the Commitments.

 

“Interest Expense” means the sum of
interest on, and amortization of debt discount, in respect of Debt of the
Company and its Subsidiaries.  For the
purposes of calculating Interest Expense for any period, if during such period
the Company or any Subsidiary shall have made an acquisition, Interest Expense
for such period shall be calculated after giving pro forma effect thereto as if
such acquisition occurred on the first day of such period

 

“Interest Period” means, for each Eurocurrency
Rate Advance comprising part of the same Borrowing, the period commencing on
the date of such Eurocurrency Rate Advance or the date of the Conversion of any
Base Rate Advance into such Eurocurrency Rate Advance and ending on the last
day of the period selected by the Borrower requesting such Borrowing pursuant
to the provisions below and, thereafter, each subsequent period commencing on
the last day of the immediately preceding Interest Period and ending on the
last day of the period selected by such Borrower pursuant to the provisions
below.

 

8

 

The
duration of each such Interest Period shall be one, two, three or six months,
and subject to clause (c) of this definition, nine or twelve months, as the
applicable Borrower may, upon notice received by the Agent not later than
11:00 A.M. (New York City time) on the third Business Day prior to
the first day of such Interest Period, select; provided, however,
that:

 

(a)           the
Borrowers may not select any Interest Period that ends after the Termination
Date;

 

(b)           Interest
Periods commencing on the same date for Eurocurrency Rate Advances comprising
part of the same Borrowing shall be of the same duration;

 

(c)           in the
case of any such Borrowing, the Borrowers shall not be entitled to select an
Interest Period having duration of nine or twelve months unless, by 2:00 P.M.
(New York City time) on the third Business Day prior to the first day of such
Interest Period, each Lender notifies the Agent that such Lender will be
providing funding for such Borrowing with such Interest Period (the failure of
any Lender to so respond by such time being deemed for all purposes of this
Agreement as an objection by such Lender to the requested duration of such
Interest Period); provided that, if any or all of the Lenders object to
the requested duration of such Interest Period, the duration of the Interest
Period for such Borrowing shall be one, two, three or six months, as specified
by the Borrower requesting such Borrowing in the applicable Notice of Borrowing
as the desired alternative to an Interest Period of nine or twelve months;

 

(d)           whenever
the last day of any Interest Period would otherwise occur on a day other than a
Business Day, the last day of such Interest Period shall be extended to occur
on the next succeeding Business Day, provided, however, that, if
such extension would cause the last day of such Interest Period to occur in the
next following calendar month, the last day of such Interest Period shall occur
on the next preceding Business Day; and

 

(e)           whenever
the first day of any Interest Period occurs on a day of an initial calendar
month for which there is no numerically corresponding day in the calendar month
that succeeds such initial calendar month by the number of months equal to the
number of months in such Interest Period, such Interest Period shall end on the
last Business Day of such succeeding calendar month.

 

“Internal Revenue Code” means the Internal
Revenue Code of 1986, as amended from time to time, and the regulations
promulgated and rulings issued thereunder.

 

“Investment” in any Person means any loan or
advance to such Person, any purchase or other acquisition of any capital stock,
warrants, rights, options, obligations or other securities or all or
substantially all of the assets of such Person, any capital contribution to
such Person or any other investment in such Person, including, without
limitation, any arrangement pursuant to which the investor incurs Debt of the
types referred to in clauses (h) and (j) of the definition of “Debt”
in respect of such Person; provided, that any purchase or other acquisition of
any capital stock of the Company (or Great Lakes) for accounting under the
treasury method in connection with the exercise of options or the issuance of
restricted stock under any employee stock option plan (or similar plan or
program) approved by its board of directors shall not constitute an Investment.

 

“Investment Grade Rating” means the Public Debt
Ratings are at least BBB- by S&P and Baa3 by Moody’s and such rating shall
not be accompanied by either (x) in the case of S&P, a negative outlook,
creditwatch negative or the equivalent thereof or (y) in the case of Moody’s, a
negative outlook, a review for possible downgrade or the equivalent thereof.

 

“Investment Grade Rating Date” means the first
date after the date hereof on which the Company has an Investment Grade Rating.

 

“issuance” with respect to any Letter of Credit
means the issuance, amendment, renewal or extension of such Letter of Credit.

 

9

 

“Issuing Bank” means an Initial Issuing Bank or
any Eligible Assignee to which a portion of the Letter of Credit Commitment
hereunder has been assigned pursuant to Section 9.07 so long as such Eligible
Assignee expressly agrees to perform in accordance with their terms all of the
obligations that by the terms of this Agreement are required to be performed by
it as an Issuing Bank and notifies the Agent of its Applicable Lending Office
(which information shall be recorded by the Agent in the Register), for so long
as such Initial Issuing Bank or Eligible Assignee, as the case may be, shall
have a Letter of Credit Commitment.

 

“L/C Cash Deposit
Account” means an interest bearing cash deposit account to be established
and maintained by the Agent, in which the Agent shall have a valid security
interest and over which the Agent shall have sole dominion and control, upon
terms as may be satisfactory to the Agent.

 

“L/C Related Documents”
has the meaning specified in Section 2.06(b)(i).

 

“Lenders” means each Initial Lender, each
Issuing Bank, each Assuming Lender that shall become a party hereto pursuant to
Section 2.18 and each Person that shall become a party hereto pursuant to
Section 9.07.

 

“Letter of Credit” has the meaning specified in
Section 2.01(b).

 

“Letter of Credit
Agreement” has the meaning specified in Section 2.03(a).

 

“Letter of Credit
Commitment” means, with respect to each Issuing Bank, the obligation of
such Issuing Bank to issue Letters of Credit for the account of the Borrowers
and their specified Subsidiaries in (a) the Dollar amount set forth opposite
the Issuing Bank’s name on Schedule I hereto under the caption “Letter of
Credit Commitment” or (b) if such Issuing Bank has entered into one or more
Assignment and Acceptances, the Dollar amount set forth for such Issuing Bank
in the Register maintained by the Agent pursuant to Section 9.07(d) as
such Issuing Bank’s “Letter of Credit Commitment”, in each case as such amount
may be reduced prior to such time pursuant to Section 2.05.

 

“Letter of Credit
Facility” means, at any time, an amount equal to the least of (a) the
aggregate amount of the Issuing Banks’ Letter of Credit Commitments at such
time, (b) $300,000,000 and (c) the aggregate amount of the Revolving Credit
Commitments, as such amount may be reduced at or prior to such time pursuant to
Section 2.05.

 

“Lien” means any lien, security interest or
other charge or encumbrance of any kind, or any other type of preferential
arrangement, including, without limitation, the lien or retained security title
of a conditional vendor and any easement, right of way or other encumbrance on
title to real property.

 

“Loan Documents” means (a) this Agreement,
(b) the Notes, (iii) the Guaranties, (iv) during the Security Period,
the Collateral Documents, and (v) solely for purposes of the Guaranties, the
Guaranteed Hedge Agreements, in each case as amended.

 

“Loan Parties” means the Company, the other Borrowers
and the other Guarantors.

 

“Marketable Securities” means any of the
following, to the extent owned by the Borrower or any of its Subsidiaries free
and clear of all Liens and having a maturity of not greater than 360 days from
the date of acquisition thereof: 
(a) readily marketable direct obligations of the Government of the
United States or any agency or instrumentality thereof or obligations
unconditionally guaranteed by the full faith and credit of the Government of
the United States, (b) insured certificates of deposit of or time deposits
with any commercial bank that is a Lender or a member of the Federal Reserve
System, issues (or the parent of which issues) commercial paper rated as
described in clause (c), is organized under the laws of the United States
or any State thereof and has combined capital and surplus of at least $1
billion or (c) commercial paper issued by any corporation organized under
the laws of any State of the United States

 

10

 

and
rated at least “Prime-1” (or the then equivalent grade) by Moody’s or “A-1” (or
the then equivalent grade) by S&P.

 

“Material Adverse Change” means any material
adverse change in (a) the business, condition (financial or otherwise),
operations or properties of the Company and its Subsidiaries taken as a whole,
(b) the rights and remedies of the Agent or any Lender under this
Agreement or any other Loan Document or (c) the ability of any Borrower to
perform its obligations under this Agreement or any other Loan Document.

 

“Material Adverse Effect” means a material
adverse effect on (a) the business, condition (financial or otherwise),
operations or properties of the Company and its Subsidiaries taken as a whole,
(b) the rights and remedies of the Agent or any Lender under this
Agreement or any Note or (c) the ability of any Borrower to perform its
obligations under this Agreement or any Note.

 

“Moody’s” means Moody’s Investors Service, Inc.

 

“Multiemployer Plan” means a multiemployer
plan, as defined in Section 4001(a)(3) of ERISA, to which the Company or
any ERISA Affiliate is making or accruing an obligation to make contributions,
or has within any of the preceding five plan years made or accrued an
obligation to make contributions.

 

“Multiple Employer Plan” means a single
employer plan, as defined in Section 4001(a)(15) of ERISA, that
(a) is maintained for employees of the Company or any ERISA Affiliate and
at least one Person other than the Company and the ERISA Affiliates or
(b) was so maintained and in respect of which the Company or any ERISA
Affiliate could have liability under Section 4064 or 4069 of ERISA in the
event such plan has been or were to be terminated.

 

“Note” means a promissory note of any Borrower
payable to the order of any Lender, delivered pursuant to a request made under
Section 2.16 in substantially the form of Exhibit A hereto,
evidencing the aggregate indebtedness of such Borrower to such Lender resulting
from the Advances made by such Lender to such Borrower.

 

“Notice of Borrowing” has the meaning specified
in Section 2.02(a).

 

“Notice of Issuance” has the meaning specified
in Section 2.03(a).

 

“OFAC” means the U.S. Department of Treasury’s
Office of Foreign Assets Control.

 

“Patriot Act” means the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001, Pub. L. 107-56, signed into law October 26,
2001.

 

“Payment Office” means, for any Committed
Currency, such office of Citibank (or such other financial institution as
designated by the Agent) as shall be from time to time selected by the Agent
and notified by the Agent to the Company and the Lenders.

 

“PBGC” means the Pension Benefit Guaranty
Corporation (or any successor).

 

“Permitted Liens” means such of the following
as to which no enforcement, collection, execution, levy or foreclosure
proceeding shall have been commenced (or if commenced, shall have been
stayed):  (a) Liens for taxes,
assessments and governmental charges or levies to the extent not required to be
paid under Section 5.01(b) hereof; (b) Liens imposed by law, such as
materialmen’s, mechanics’, carriers’, workmen’s and repairmen’s Liens and other
similar Liens arising in the ordinary course of business securing obligations
that are not overdue for a period of more than 30 days; (c) pledges or
deposits to secure obligations under workers’ compensation laws or similar
legislation or to secure public or statutory

 

11

 

obligations;
(d) easements, rights of way and other encumbrances on title to real
property that do not render title to the property encumbered thereby
unmarketable or materially adversely affect the use of such property for its
present purposes, (e) deposits or other liens to secure the performance of
bids, trade contracts (other than for Debt), leases, statutory obligations,
surety and appeal bonds, performance bonds and other obligations of a like
nature incurred in the ordinary course of business; (f) any banker’s Lien or
right of offset on moneys of the Company or any of its Subsidiaries in favor of
any lender or holder of its commercial paper deposited with such lender or
holder in the ordinary course of business; (g) interest of lessees in property
owned by the Company or any of its Subsidiaries where such interests are
created in the ordinary course of their respective leasing activities and are
not created directly or indirectly in connection with the borrowing of money or
the securing of Debt by the Company or any of its Subsidiaries; (h) Liens in
favor of customs or revenue authorities arising as a matter of law to secure
payment of customs duties in connection with the importation of goods; (i)
Liens arising from or related to precautionary UCC or like personal property
security financing statements regarding operating leases (if any) entered into
by the Company and its Subsidiaries in the ordinary course of business; (j)
licenses, sublicenses, leases and subleases, to the extent that such would be
an encumbrance, in each case entered into in the ordinary course of business
and not materially interfering with the business of the Company or any of its
Subsidiaries and (k) liens arising from judgments not otherwise constituting an
Event of Default.

 

“Person” means an individual, partnership, corporation
(including a business trust), joint stock company, trust, unincorporated
association, joint venture, limited liability company or other entity, or a
government or any political subdivision or agency thereof.

 

“Plan” means a Single Employer Plan or a
Multiple Employer Plan.

 

“Post-Petition
Interest” has the meaning specified in Section 7.05.

 

“Public Debt Rating” means, as of any date, the
rating that has been most recently announced by either S&P or Moody’s, as
the case may be, for any class of non-credit enhanced long-term senior
unsecured debt issued by the Company or, if any such rating agency shall have
issued more than one such rating, the lowest such rating issued by such rating
agency.  For purposes of the foregoing,
(a) if only one of S&P and Moody’s shall have in effect a Public Debt
Rating, the Applicable Margin and the Applicable Percentage shall be determined
by reference to the available rating; (b) if neither S&P nor Moody’s
shall have in effect a Public Debt Rating, the Applicable Margin, the
Applicable Percentage will be set in accordance with Level 5 under the
definition of “Applicable Margin” or “Applicable Percentage”, as
the case may be; (c) if the ratings established by S&P and Moody’s
shall fall within different levels, the Applicable Margin and the Applicable
Percentage shall be based upon the higher rating unless the such ratings differ
by two or more levels, in which case the applicable level will be deemed to be
one level above the lower of such levels; (d) if any rating established by
S&P or Moody’s shall be changed, such change shall be effective as of the
date on which such change is first announced publicly by the rating agency
making such change; and (e) if S&P or Moody’s shall change the basis
on which ratings are established, each reference to the Public Debt Rating
announced by S&P or Moody’s, as the case may be, shall refer to the then
equivalent rating by S&P or Moody’s, as the case may be.

 

“Ratable
Share” of any amount means, with respect to any Lender at any time, the
product of such amount times a fraction the numerator of which is the
amount of such Lender’s Revolving Credit Commitment at such time (or, if the
Revolving Credit Commitments shall have been terminated pursuant to
Section 2.05 or 6.01, such Lender’s Revolving Credit Commitment as in
effect immediately prior to such termination) and the denominator of which is
the aggregate amount of all Revolving Credit Commitments at such time (or, if
the Revolving Credit Commitments shall have been terminated pursuant to
Section 2.05 or 6.01, the aggregate amount of all Revolving Credit
Commitments as in effect immediately prior to such termination).

 

“Reference Banks” means Citibank and Bank of
America, N.A.

 

12

 

“Register” has the meaning specified in
Section 9.07(d).

 

“Required Lenders” means at any time Lenders
owed at least a majority in interest of the then aggregate unpaid principal
amount (based on the Equivalent in Dollars at such time) of the Advances owing
to Lenders, or, if no such principal amount is then outstanding, Lenders having
at least a majority in interest of the Revolving Credit Commitments.

 

“Revolving Credit Commitment” means as to any
Lender (a) the Dollar amount set forth opposite such Lender’s name on
Schedule I hereto as such Lender’s “Revolving Credit Commitment”, (b) if such
Lender has become a Lender hereunder pursuant to an Assumption Agreement, the
Dollar amount set forth in such Assumption Agreement or (c) if such Lender
has entered into an Assignment and Acceptance, the Dollar amount set forth for
such Lender in the Register maintained by the Agent pursuant to
Section 9.07(d), as such amount may be reduced pursuant to
Section 2.05 or increased pursuant to Section 2.18.

 

“S&P” means Standard & Poor’s, a
division of The McGraw-Hill Companies, Inc.

 

“Security Period”
means any period from the date that the Public Debt Ratings are BB or lower by
S&P or Ba2 or lower by Moody’s until the earlier of (a) the date, if any,
that the Public Debt Ratings are at least BB+ by S&P and Ba1 by Moody’s and
(b) the later of (i) the repayment in full of all Advances and the termination
or expiration of all Letters of Credit (or the provision of cash collateral or
other credit support therefor satisfactory to the applicable Issuing Banks
thereof) and (ii) the Termination Date.

 

“Single Employer Plan” means a single employer
plan, as defined in Section 4001(a)(15) of ERISA, that (a) is
maintained for employees of the Company or any ERISA Affiliate and no Person
other than the Company and the ERISA Affiliates or (b) was so maintained
and in respect of which the Company or any ERISA Affiliate could have liability
under Section 4069 of ERISA in the event such plan has been or were to be
terminated.

 

“Solvent” and “Solvency”
mean, with respect to any Person on a particular date, that on such date
(a) the fair value of the property of such Person is greater than the
total amount of liabilities, including, without limitation, contingent
liabilities, of such Person, (b) the present fair salable value of the
assets of such Person is not less than the amount that will be required to pay
the probable liability of such Person on its debts as they become absolute and
matured, (c) such Person does not intend to, and does not believe that it
will, incur debts or liabilities beyond such Person’s ability to pay such debts
and liabilities as they mature and (d) such Person is not engaged in
business or a transaction, and is not about to engage in business or a
transaction, for which such Person’s property would constitute an unreasonably
small capital.  The amount of contingent
liabilities at any time shall be computed as the amount that, in the light of
all the facts and circumstances existing at such time, represents the amount
that can reasonably be expected to become an actual or matured liability.

 

“Sub-Agent” means Citibank International plc.

 

“Subordinated
Obligations” has the meaning specified in Section 7.05.

 

“Subsidiary” of any Person means any
corporation, partnership, joint venture, limited liability company, trust or
estate of which (or in which) more than 50% of (a) the issued and
outstanding capital stock having ordinary voting power to elect a majority of
the Board of Directors of such corporation (irrespective of whether at the time
capital stock of any other class or classes of such corporation shall or might
have voting power upon the occurrence of any contingency), (b) the
interest in the capital or profits of such limited liability company,
partnership or joint venture or (c) the beneficial interest in such trust
or estate is at the time directly or indirectly owned or controlled by such
Person, by such Person and one or more of its other Subsidiaries or by one or
more of such Person’s other Subsidiaries.

 

13

 

“Subsidiary Guarantors”
means the Subsidiaries of the Company listed on Schedule II hereto and
each other Subsidiary of the Company that shall be required to execute and
deliver a guaranty pursuant to Section 5.01(j).

 

“Subsidiary Guaranty”
means the guaranty of the Subsidiary Guarantors set forth in Article VII,
together with each other guaranty and guaranty supplement delivered pursuant to
Section 5.01(j), in each case as amended, amended and restated, modified or otherwise
supplemented.

 

“Termination Date” means the earlier of July 1,
2010 and the date of termination in whole of the Commitments pursuant to
Section 2.05 or 6.01.

 

“Type” refers to
the distinction between Advances bearing interest at the Base Rate and Advances
bearing interest at the Eurocurrency Rate.

 

“Unissued Letter of Credit Commitment” means,
with respect to any Issuing Bank, the obligation of such Issuing Bank to issue
Letters of Credit for the account of the Borrower or its specified Subsidiaries
in an amount equal to the excess of (a) the amount of its Letter of Credit
Commitment over (b) the aggregate Available Amount of all Letters of Credit
issued by such Issuing Bank.

 

“Unused Commitment” means, with respect to each
Lender at any time, (a) such Lender’s Revolving Credit Commitment at such time minus
(b) the sum of (i) the aggregate principal amount of all Advances made by such
Lender (in its capacity as a Lender) and outstanding at such time, plus
(ii) such Lender’s Ratable Share of (A) the aggregate Available Amount of all
the Letters of Credit outstanding at such time and (B) the aggregate principal
amount of all Advances made by each Issuing Bank pursuant to
Section 2.03(c) that have not been ratably funded by such Lender and
outstanding at such time.

 

“Voting Stock” means capital stock issued by a
corporation, or equivalent interests in any other Person, the holders of which
are ordinarily, in the absence of contingencies, entitled to vote for the
election of directors (or persons performing similar functions) of such Person,
even if the right so to vote has been suspended by the happening of such a
contingency.

 

“Wholly-Owned Subsidiary” of any Person means
any Subsidiary of such Person all of the capital interests of which, other than
directors’ qualifying shares, are owned directly or indirectly by such Person.

 

“Withdrawal Liability” has the meaning
specified in Part I of Subtitle E of Title IV of ERISA.

 

SECTION 1.02.  Computation
of Time Periods; Other Definitional Provisions.  In this Agreement and the other Loan
Documents in the computation of periods of time from a specified date to a
later specified date, the word “from” means “from and including” and the words “to”
and “until” each mean “to but excluding”. 
References in the Loan Documents to any agreement or contract “as amended”
shall mean and be a reference to such agreement or contract as amended, amended
and restated, supplemented or otherwise modified from time to time in
accordance with its terms.

 

SECTION 1.03.  Accounting
Terms.  All accounting terms not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles consistent with those applied in the preparation
of the financial statements referred to in Section 4.01(e) (“GAAP”).

 

ARTICLE II

 

AMOUNTS AND TERMS OF THE ADVANCES AND LETTERS OF CREDIT

 

SECTION 2.01.  The
Advances and Letters of Credit.  (a)  The
Advances.  Each Lender severally
agrees, on the terms and conditions hereinafter set forth, to make Advances to
any Borrower from time to time on any Business Day during the period from the
Effective Date until the Termination Date in an amount (based in

 

14

 

respect of any Advances
to be denominated in a Committed Currency by reference to the Equivalent
thereof in Dollars determined on the date of delivery of the applicable Notice
of Borrowing) not to exceed such Lender’s Unused Commitment.  Each Borrowing shall be in an amount not less
than the Borrowing Minimum or the Borrowing Multiple in excess thereof and
shall consist of Advances of the same Type and in the same currency made on the
same day by the Lenders ratably according to their respective Commitments.  Within the limits of each Lender’s Revolving
Credit Commitment, any Borrower may borrow under this Section 2.01(a), prepay
pursuant to Section 2.10 and reborrow under this Section 2.01(a).

 

(b)           Letters
of Credit.  Each Issuing Bank agrees,
on the terms and conditions hereinafter set forth, in reliance upon the
agreements of the other Lenders set forth in this Agreement, to issue standby
and trade letters of credit (each, a “Letter
of Credit”) denominated in Dollars or any Committed Currency for the
account of any Borrower (or on behalf of Subsidiaries specified by any Borrower)
from time to time on any Business Day during the period from the Effective Date
until 30 days before the Termination Date in an aggregate Available Amount
(based in respect of any Letters of Credit to be denominated in a Committed
Currency by reference to the Equivalent thereof in Dollars determined on the
date of delivery of the applicable Notice of Issuance) (i) for all Letters of
Credit not to exceed at any time the Letter of Credit Facility at such time,
(ii) for all Letters of Credit issued by such Issuing Bank not to exceed at any
time such Issuing Bank’s Letter of Credit Commitment at such time and
(iii) for each such Letter of Credit not to exceed an amount equal to the
Unused Commitments of the Lenders at such time. 
No Letter of Credit shall have an expiration date (including all rights
of the applicable Borrower or the beneficiary to require renewal) later than
the earlier of one year after the issuance thereof (or one year after its
renewal or extension) and ten Business Days before the Termination Date.  Within the limits referred to above, the
Borrowers may from time to time request the issuance of Letters of Credit under
this Section 2.01(b).  Each letter
of credit listed on Schedule 2.01(b) shall be deemed to constitute a Letter of
Credit issued hereunder, and each Lender that is an issuer of such a Letter of
Credit shall, for purposes of Section 2.03, be deemed to be an Issuing Bank for
each such letter of credit, provided that any renewal or replacement of
any such letter of credit shall be issued by an Issuing Bank pursuant to the
terms of this Agreement.

 

SECTION 2.02.  Making
the Advances.  (a)  Except as otherwise provided in Section
2.03(c), each Borrowing shall be made on notice, given not later than
(x) 11:00 A.M. (New York City time) on the second Business Day
prior to the date of the proposed Borrowing in the case of a Borrowing
consisting of Eurocurrency Rate Advances denominated in Dollars, (y) 4:00 P.M.
(London time) on the third Business Day prior to the date of the proposed Borrowing
in the case of a Borrowing consisting of Eurocurrency Rate Advances denominated
in any Committed Currency, or (z) 11:00 A.M. (New York City time) on the date
of the proposed Borrowing in the case of a Borrowing consisting of Base Rate
Advances, by any Borrower to the Agent (and, in the case of a Borrowing
consisting of Eurocurrency Rate Advances, simultaneously to the Sub-Agent),
which shall give to each Lender prompt notice thereof by telecopier.  Each such notice of a Borrowing (a “Notice
of Borrowing”) shall be by telephone, confirmed promptly in writing or
telecopier in substantially the form of Exhibit B-1 hereto, specifying
therein the requested (i) date of such Borrowing, (ii) Type of
Advances comprising such Borrowing, (iii) aggregate amount of such
Borrowing, and (iv) in the case of a Borrowing consisting of Eurocurrency
Rate Advances, initial Interest Period and currency for each such Advance.  Each Lender shall, before 11:00 A.M.
(New York City time) on the date of such Borrowing, in the case of a
Borrowing consisting of Advances denominated in Dollars, and before
11:00 A.M. (London time) on the date of such Borrowing, in the case of a
Borrowing consisting of Eurocurrency Rate Advances denominated in any Committed
Currency, make available for the account of its Applicable Lending Office to
the Agent at the applicable Agent’s Account, in same day funds, such Lender’s
ratable portion of such Borrowing.  After
the Agent’s receipt of such funds and upon fulfillment of the applicable
conditions set forth in Article III, the Agent will make such funds
available to the Borrower requesting the Borrowing at the Agent’s address
referred to in Section 9.02 or at the applicable Payment Office, as the
case may be.

 

(b)           Anything
in subsection (a) above to the contrary notwithstanding, (i) the
Borrowers may not select Eurocurrency Rate Advances for any Borrowing if the
aggregate amount of such Borrowing is less than the Borrowing Minimum or if the
obligation of the Lenders to make Eurocurrency Rate Advances shall then be
suspended pursuant to Section 2.08 or 2.12 and (ii) the Eurocurrency
Rate Advances may not be outstanding as part of more than ten separate
Borrowings.

 

(c)           Each
Notice of Borrowing shall be irrevocable and binding on the Borrower requesting
the Borrowing.  In the case of any
Borrowing that the related Notice of Borrowing specifies is to be comprised of

 

15

 

Eurocurrency Rate
Advances, such Borrower shall indemnify each Lender against any loss, cost or
expense incurred by such Lender as a result of any failure to fulfill on or
before the date specified in such Notice of Borrowing for such Borrowing the
applicable conditions set forth in Article III, including, without
limitation, any loss (excluding loss of anticipated profits), cost or expense
incurred by reason of the liquidation or reemployment of deposits or other
funds acquired by such Lender to fund the Advance to be made by such Lender as
part of such Borrowing when such Advance, as a result of such failure, is not
made on such date.

 

(d)           Unless the
Agent shall have received notice from a Lender prior to the time of any
Borrowing that such Lender will not make available to the Agent such Lender’s
ratable portion of such Borrowing, the Agent may assume that such Lender has
made such portion available to the Agent on the date of such Borrowing in
accordance with subsection (a) of this Section 2.02, and the Agent
may, in reliance upon such assumption, make available to the Borrower requesting
the Borrowing on such date a corresponding amount.  If and to the extent that such Lender shall
not have so made such ratable portion available to the Agent, such Lender and
such Borrower severally agree to repay to the Agent forthwith on demand such
corresponding amount together with interest thereon, for each day from the date
such amount is made available to such Borrower until the date such amount is
repaid to the Agent, at (i) in the case of such Borrower, the higher of
(A) the interest rate applicable at the time to the Advances comprising such
Borrowing and (B) the cost of funds incurred by the Agent in respect of such
amount and (ii) in the case of such Lender (A) the Federal Funds Rate in
the case of Advances denominated in Dollars or (B) the cost of funds incurred
by the Agent in respect of such amount in the case of Advances denominated in
Committed Currencies.  If such Lender
shall repay to the Agent such corresponding amount, such amount so repaid shall
constitute such Lender’s Advance as part of such Borrowing for purposes of this
Agreement.

 

(e)           The
failure of any Lender to make the Advance to be made by it as part of any
Borrowing shall not relieve any other Lender of its obligation, if any,
hereunder to make its Advance on the date of such Borrowing, but no Lender
shall be responsible for the failure of any other Lender to make the Advance to
be made by such other Lender on the date of any Borrowing.

 

SECTION 2.03. 
Issuance of and Drawings and Reimbursement Under Letters of Credit.  (a)  Request
for Issuance.  (i) Each Letter of
Credit shall be issued upon notice, given not later than 11:00 A.M.
(New York City time) on the fifth Business Day prior to the date of the
proposed issuance of such Letter of Credit (or on such shorter notice as the
applicable Issuing Bank may agree), by any Borrower to any Issuing Bank, and
such Issuing Bank shall give the Agent prompt notice thereof.  Each such notice by a Borrower of issuance of
a Letter of Credit (a “Notice of Issuance”) shall be by telecopier,
telephone or email, as specified by such Issuing Bank to be its preferred
method of notification, specifying therein the requested (A) date of such
issuance (which shall be a Business Day), (B) Available Amount of such
Letter of Credit, (C) expiration date of such Letter of Credit (which
shall not be later than 10 Business Days before the Termination Date),
(D) name and address of the beneficiary of such Letter of Credit and
(E) form of such Letter of Credit. 
Such Letter of Credit shall be issued pursuant to such application and
agreement for letter of credit as such Issuing Bank and the applicable Borrower
shall agree for use in connection with such requested Letter of Credit (a “Letter
of Credit Agreement”).  If the
requested form of such Letter of Credit is acceptable to such Issuing Bank in
its reasonable discretion (it being understood that any such form shall have
only explicit documentary conditions to draw and shall not include
discretionary conditions), such Issuing Bank will, upon fulfillment of the
applicable conditions set forth in Section 3.03, make such Letter of Credit
available to the applicable Borrower at its office referred to in
Section 9.02 or as otherwise agreed with such Borrower in connection with
such issuance.  In the event and to the
extent that the provisions of any Letter of Credit Agreement shall conflict
with this Agreement, the provisions of this Agreement shall govern.

 

(b)           Participations.  By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing or decreasing the amount thereof)
and without any further action on the part of the applicable Issuing Bank or
the Lenders, such Issuing Bank hereby grants to each Lender, and each Lender
hereby acquires from such Issuing Bank, a participation in such Letter of Credit
equal to such Lender’s Ratable Share of the Available Amount of such Letter of
Credit.  Each Borrower hereby agrees to
each such participation.  In
consideration and in furtherance of the foregoing, each Lender hereby
absolutely and unconditionally agrees to pay to the Agent, for the account of
such Issuing Bank, such Lender’s Ratable Share of each drawing made under a
Letter of Credit funded by such Issuing Bank and not reimbursed by the
applicable Borrower on the date made, or of any reimbursement payment required
to be refunded to such Borrower for any reason, which amount will be

 

16

 

advanced, and deemed to be an Advance to such Borrower
hereunder, regardless of the satisfaction of the conditions set forth in
Section 3.03.  Each Lender acknowledges
and agrees that its obligation to acquire participations pursuant to this
paragraph in respect of Letters of Credit is absolute and unconditional and
shall not be affected by any circumstance whatsoever, including any amendment,
renewal or extension of any Letter of Credit or the occurrence and continuance
of a Default or reduction or termination of the Revolving Credit Commitments,
and that each such payment shall be made without any offset, abatement, withholding
or reduction whatsoever.  Each Lender
further acknowledges and agrees that its participation in each Letter of Credit
will be automatically adjusted to reflect such Lender’s Ratable Share of the
Available Amount of such Letter of Credit at each time such Lender’s Revolving
Credit Commitment is amended pursuant to a Commitment Increase in accordance
with Section 2.18, an assignment in accordance with Section 9.07 or otherwise
pursuant to this Agreement.

 

(c)           Drawing
and Reimbursement.  The payment by an
Issuing Bank of a draft drawn under any Letter of Credit which is not
reimbursed by the applicable Borrower on the date made shall constitute for all
purposes of this Agreement the making by any such Issuing Bank of an Advance,
which in the case of a Letter of Credit denominated in Dollars shall be a Base
Rate Advance, in the amount of such draft, and in the case of a Letter of
Credit denominated in any Committed Currency, shall be exchanged into an
Equivalent amount of Dollars and shall be a Base Rate Advance in the amount of
the Dollar Equivalent of such draft, without regard to whether the making of
such an Advance would exceed such Issuing Bank’s Unused Commitment.  Each Issuing Bank shall give prompt notice of
each drawing under any Letter of Credit issued by it to the applicable Borrower
and the Agent.  Upon written demand by
such Issuing Bank, with a copy of such demand to the Agent and the applicable
Borrower, each Lender shall pay to the Agent such Lender’s Ratable Share of
such outstanding Advance pursuant to Section 2.03(b).  Each Lender acknowledges and agrees that its
obligation to make Advances pursuant to this paragraph in respect of Letters of
Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including any amendment, renewal or extension of any
Letter of Credit or the occurrence and continuance of a Default or reduction or
termination of the Revolving Credit Commitments, and that each such payment
shall be made without any offset, abatement, withholding or reduction
whatsoever.  Promptly after receipt
thereof, the Agent shall transfer such funds to such Issuing Bank.  Each Lender agrees to fund its Ratable Share
of an outstanding Advance on (i) the Business Day on which demand therefor
is made by such Issuing Bank, provided that notice of such demand is
given not later than 11:00 A.M. (New York City time) on such Business
Day, or (ii) the first Business Day next succeeding such demand if notice
of such demand is given after such time. 
If and to the extent that any Lender shall not have so made the amount
of such Advance available to the Agent, such Lender agrees to pay to the Agent
forthwith on demand such amount together with interest thereon, for each day
from the date of demand by any such Issuing Bank until the date such amount is
paid to the Agent, at the Federal Funds Rate for its account or the account of
such Issuing Bank, as applicable.  If
such Lender shall pay to the Agent such amount for the account of any such
Issuing Bank on any Business Day, such amount so paid in respect of principal
shall constitute an Advance made by such Lender on such Business Day for
purposes of this Agreement, and the outstanding principal amount of the Advance
made by such Issuing Bank shall be reduced by such amount on such Business Day.

 

(d)           Letter
of Credit Reports.  Each Issuing Bank
shall furnish (A) to the Agent (with a copy to the Company), on the first
Business Day of each calendar quarter a written report summarizing issuance and
expiration dates of Letters of Credit issued by such Issuing Bank during the
preceding quarter and drawings during such quarter under all Letters of Credit
and (B) to the Agent (with a copy to the Company) on the first Business
Day of each calendar quarter a written report setting forth the average daily
aggregate Available Amount during the preceding calendar quarter of all Letters
of Credit issued by such Issuing Bank. 
The Agent shall provide copies of such reports promptly to each Lender.

 

(e)           Failure
to Make Advances.  The failure of any
Lender to make the Advance to be made by it on the date specified in Section
2.03(c) shall not relieve any other Lender of its obligation hereunder to make
its Advance on such date, but no Lender shall be responsible for the failure of
any other Lender to make the Advance to be made by such other Lender on such
date.

 

SECTION 2.04.  Fees.  (a)  Facility
Fee.  The Company agrees to pay to
the Agent for the account of each Lender a facility fee on the aggregate amount
of such Lender’s Revolving Credit Commitment from the date hereof in the case
of each Initial Lender and from the effective date specified in the Assumption
Agreement or in the Assignment and Acceptance pursuant to which it became a
Lender in the case of each other Lender until the

 

17

 

Termination Date at a
rate per annum equal to the Applicable Percentage in effect from time to time,
payable in arrears quarterly on the last day of each March, June, September and
December, commencing September 30, 2005, and on the Termination Date.

 

(b)           Letter
of Credit Fees.  (i)  Each Borrower shall pay to the Agent for the
account of each Lender a commission on such Lender’s Ratable Share of the
average daily aggregate Available Amount of all Letters of Credit issued for
the account of such Borrower and outstanding from time to time at a rate per
annum equal to the Applicable Margin for Eurocurrency Rate Advances in effect
from time to time during such calendar quarter, payable in arrears quarterly on
the last day of each March, June, September and December, commencing with the
quarter ended September 30, 2005, and on the Termination Date; provided
that the Applicable Margin shall be 2% above the Applicable Margin in effect
upon the occurrence and during the continuation of an Event of Default if such
Borrower is required to pay default interest pursuant to Section 2.07(b).

 

(ii)           Each
Borrower shall pay to each Issuing Bank, for its own account, a fronting fee
and such other commissions, issuance fees, transfer fees and other fees and
charges in connection with the issuance or administration of each Letter of
Credit as such Borrower and such Issuing Bank shall agree.

 

(c)           Agent’s
Fees.  The Company shall pay to the
Agent for its own account such fees as may from time to time be agreed between
the Company and the Agent.

 

SECTION 2.05.  Termination
or Reduction of the Commitments.  The
Company shall have the right, upon at least three Business Days’ notice to the
Agent, to terminate in whole or permanently reduce ratably in part the Unused
Commitments or the Unissued Letter of Credit Commitments of the Lenders, provided
that each partial reduction shall be in a minimum aggregate amount of
$5,000,000 or an integral multiple of $1,000,000 in excess thereof.

 

SECTION 2.06.  Repayment
of Advances and Letter of Credit Drawings. 
(a)  Advances.  Each Borrower shall repay to the Agent for
the ratable account of the Lenders on the Termination Date the aggregate
principal amount of the Advances made to it and then outstanding.

 

(b)           Letter
of Credit Drawings.  The obligations
of each Borrower under any Letter of Credit Agreement and any other agreement
or instrument relating to any Letter of Credit issued for the account of such
Borrower shall be unconditional and irrevocable, and shall be paid strictly in
accordance with the terms of this Agreement, such Letter of Credit Agreement
and such other agreement or instrument under all circumstances, including,
without limitation, the following circumstances (it being understood that any
such payment by such Borrower is without prejudice to, and does not constitute
a waiver of, any rights such Borrower might have or might acquire as a result
of the payment by any Lender of any draft or the reimbursement by such Borrower
thereof):

 

(i)            any
lack of validity or enforceability of any Loan Document, any Letter of Credit
Agreement, any Letter of Credit or any other agreement or instrument relating
thereto (all of the foregoing being, collectively, the “L/C Related
Documents”);

 

(ii)           any
change in the time, manner or place of payment of, or in any other term of, all
or any of the obligations of such Borrower in respect of any L/C Related
Document or any other amendment or waiver of or any consent to departure from
all or any of the L/C Related Documents;

 

(iii)          the
existence of any claim, set-off, defense or other right that such Borrower may
have at any time against any beneficiary or any transferee of a Letter of
Credit (or any Persons for which any such beneficiary or any such transferee may
be acting), any Issuing Bank, the Agent, any Lender or any other Person,
whether in connection with the transactions contemplated by the L/C Related
Documents or any unrelated transaction;

 

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

 

18

 

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

 

(vi)          any
exchange, release or non-perfection of any collateral, or any release or
amendment or waiver of or consent to departure from the Guaranties or any other
guarantee, for all or any of the obligations of such Borrower in respect of the
L/C Related Documents; or

 

(vii)         any
other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, including, without limitation, any other circumstance that might
otherwise constitute a defense available to, or a discharge of, such Borrower
or a guarantor.

 

SECTION 2.07.  Interest
on Advances.  (a)  Scheduled Interest.  Each Borrower shall pay interest on the unpaid
principal amount of each Advance made to it and owing to each Lender from the
date of such Advance until such principal amount shall be paid in full, at the
following rates per annum:

 

(i)            Base
Rate Advances.  During such periods
as such Advance is a Base Rate Advance, a rate per annum equal at all times to
the sum of (x) the Base Rate in effect from time to time plus
(y) the Applicable Margin in effect from time to time, payable in arrears
quarterly on the last day of each March, June, September and December during
such periods and on the date such Base Rate Advance shall be Converted or paid
in full.

 

(ii)           Eurocurrency
Rate Advances.  During such periods
as such Advance is a Eurocurrency Rate Advance, a rate per annum equal at all
times during each Interest Period for such Advance to the sum of (x) the
Eurocurrency Rate for such Interest Period for such Advance plus
(y) the Applicable Margin in effect from time to time, payable in arrears
on the last day of such Interest Period and, if such Interest Period has a
duration of more than three months, on each day that occurs during such
Interest Period every three months from the first day of such Interest Period
and on the date such Eurocurrency Rate Advance shall be Converted or paid in
full.

 

(b)           Default Interest.  Upon
the occurrence and during the continuance of an Event of Default under Section
6.01(a), the Agent may, and upon the request of the Required Lenders shall,
require the Borrowers to pay interest (“Default Interest”) on
(i) the unpaid principal amount of each Advance owing to each Lender,
payable in arrears on the dates referred to in clause (a)(i) or (a)(ii)
above, at a rate per annum equal at all times to 2% per annum above the rate
per annum required to be paid on such Advance pursuant to clause (a)(i) or
(a)(ii) above and (ii) to the fullest extent permitted by law, the amount
of any interest, fee or other amount payable under this Agreement or any other
Loan Document that is not paid when due, from the date such amount shall be due
until such amount shall be paid in full, payable in arrears on the date such
amount shall be paid in full and on demand, at a rate per annum equal at all
times to 2% per annum above the rate per annum required to be paid on Base Rate
Advances pursuant to clause (a)(i) above; provided, however,
that following acceleration of the Advances pursuant to Section 6.01, Default
Interest shall accrue and be payable hereunder whether or not previously
required by the Agent.

 

SECTION 2.08.  Interest
Rate Determination.  (a)  Each
Reference Bank agrees, if requested by the Agent, to furnish to the Agent
timely information for the purpose of determining each Eurocurrency Rate.  If any one or more of the Reference Banks
shall not furnish such timely information to the Agent for the purpose of
determining any such interest rate, the Agent shall determine such interest
rate on the basis of timely information furnished by the remaining Reference
Banks.  The Agent shall give prompt
notice to the Company and the Lenders of the applicable interest rate
determined by the Agent for purposes of Section 2.07(a)(i) or (ii), and
the rate, if any, furnished by each Reference Bank for the purpose of
determining the interest rate under Section 2.07(a)(ii).

 

(b)           If, with
respect to any Eurocurrency Rate Advances, the Required Lenders notify the
Agent that (i) they are unable to obtain matching deposits in the London
inter-bank market at or about 11:00 A.M. (London time) on the second Business
Day before the making of a Borrowing in sufficient amounts to fund their
respective Advances as a part of such Borrowing during its Interest Period or
(ii) the Eurocurrency Rate for any Interest Period for such Advances will
not adequately reflect the cost to such Required Lenders of making, funding

 

19

 

or maintaining their
respective Eurocurrency Rate Advances for such Interest Period, the Agent shall
forthwith so notify the Company and the Lenders, whereupon (A) the
Borrower of such Eurocurrency Rate Advances will, on the last day of the then
existing Interest Period therefor, (1) if such Eurocurrency Rate Advances
are denominated in Dollars, either (x) prepay such Advances or (y) Convert such
Advances into Base Rate Advances and (2) if such Eurocurrency Rate Advances
are denominated in any Committed Currency, either (x) prepay such Advances
or (y) exchange such Advances into an Equivalent amount of Dollars and
Convert such Advances into Base Rate Advances and (B) the obligation of
the Lenders to make, or to Convert Advances into, Eurocurrency Rate Advances
shall be suspended until the Agent shall notify the Company and the Lenders
that the circumstances causing such suspension no longer exist.

 

(c)           If any
Borrower shall fail to select the duration of any Interest Period for any
Eurocurrency Rate Advances in accordance with the provisions contained in the
definition of “Interest Period” in Section 1.01, the Agent will forthwith
so notify such Borrower and the Lenders and such Advances will automatically be
continued as Eurocurrency Rate Advances having an Interest Period of one month.

 

(d)           On the
date on which the aggregate unpaid principal amount of Eurocurrency Rate
Advances comprising any Borrowing shall be reduced, by payment or prepayment or
otherwise, to less than the Borrowing Minimum, such Advances shall
automatically (i) if such Eurocurrency Rate Advances are denominated in
Dollars, Convert into Base Rate Advances and (ii) if such Eurocurrency
Rate Advances are denominated in a Committed Currency, be exchanged for an
Equivalent amount of Dollars and Convert into Base Rate Advances.

 

(e)           Upon the
occurrence and during the continuance of any Event of Default, (i) each
Eurocurrency Rate Advance will automatically, on the last day of the then
existing Interest Period therefor, (A) if such Eurocurrency Rate Advances
are denominated in Dollars, be Converted into Base Rate Advances and
(B) if such Eurocurrency Rate Advances are denominated in any Committed
Currency, be exchanged for an Equivalent amount of Dollars and be Converted
into Base Rate Advances and (ii) the obligation of the Lenders to make, or
to Convert Advances into, Eurocurrency Rate Advances shall be suspended.

 

(f)            If
Moneyline Telerate Markets Page 3750 is unavailable and fewer than two
Reference Banks furnish timely information to the Agent for determining the
Eurocurrency Rate for any Eurocurrency Rate Advances after the Agent has
requested such information,

 

(i)            the Agent
shall forthwith notify the applicable Borrower and the Lenders that the
interest rate cannot be determined for such Eurocurrency Rate Advances,

 

(ii)           each such
Advance will automatically, on the last day of the then existing Interest
Period therefor, (A) if such Eurocurrency Rate Advance is denominated in
Dollars, Convert into a Base Rate Advance and (B) if such Eurocurrency
Rate Advance is denominated in any Committed Currency, be prepaid by the
applicable Borrower or be automatically exchanged for an Equivalent amount of
Dollars and be Converted into a Base Rate Advance (or if such Advance is then a
Base Rate Advance, will continue as a Base Rate Advance), and

 

(iii)          the
obligation of the Lenders to make Eurocurrency Rate Advances or to Convert
Advances into Eurocurrency Rate Advances shall be suspended until the Agent
shall notify the Company and the Lenders that the circumstances causing such
suspension no longer exist and the Agent shall promptly notify the Company and
the Lenders following its knowledge thereof.

 

SECTION 2.09.  Optional Conversion
of Advances.  The Borrower of any Advance
may on any Business Day, upon notice given to the Agent not later than
11:00 A.M. (New York City time) on the third Business Day prior to
the date of the proposed Conversion and subject to the provisions of
Sections 2.08 and 2.12, Convert all Advances denominated in Dollars of one
Type comprising the same Borrowing into Advances denominated in Dollars of the
other Type; provided, however, that any Conversion of Base Rate
Advances into Eurocurrency Rate Advances shall be in an amount not less than
the minimum amount specified in Section 2.02(c) and no Conversion of any
Advances shall result in more separate Borrowings than permitted under
Section 2.02(c).  Each such notice
of a Conversion shall, within the restrictions specified above, specify
(i) the date of such

 

20

 

Conversion, (ii) the
Dollar denominated Advances to be Converted, and (iii) if such Conversion
is into Eurocurrency Rate Advances, the duration of the initial Interest Period
for each such Advance.  Each notice of
Conversion shall be irrevocable and binding on the Borrower giving such notice.

 

SECTION 2.10.  Prepayments
of Advances. 
(a) Optional.  Each
Borrower may, upon notice at least two Business Days’ prior to the date of such
prepayment, in the case of Eurocurrency Rate Advances, and not later than 11:00
A.M. (New York City time) on the date of such prepayment, in the case of Base
Rate Advances, to the Agent stating the proposed date and aggregate principal
amount of the prepayment, and if such notice is given such Borrower shall,
prepay the outstanding principal amount of the Advances comprising part of the
same Borrowing in whole or ratably in part, together with accrued interest to
the date of such prepayment on the principal amount prepaid; provided, however,
that (x) each partial prepayment of Advances shall be in an aggregate principal
amount of not less than the Borrowing Minimum or a Borrowing Multiple in excess
thereof and (y) in the event of any such prepayment of a Eurocurrency Rate
Advance, such Borrower shall be obligated to reimburse the Lenders in respect
thereof pursuant to Section 9.04(c).

 

(b)           Mandatory.  (i) 
If, on any date, the Agent notifies the Company that, on any interest
payment date, the sum of (A) the aggregate principal amount of all Advances
denominated in Dollars plus the aggregate Available Amount of all Letters of
Credit denominated in Dollars then outstanding plus (B) the Equivalent in
Dollars (determined on the third Business Day prior to such interest payment
date) of the aggregate principal amount of all Advances denominated in
Committed Currencies plus the aggregate Available Amount of all Letters of
Credit denominated in Committed Currencies then outstanding exceeds 103% of the
aggregate Commitments of the Lenders on such date, the Borrowers shall, as soon
as practicable and in any event within two Business Days after receipt of such
notice, prepay the outstanding principal amount of any Advances owing by the
Borrowers in an aggregate amount sufficient to reduce such sum to an amount not
to exceed 100% of the aggregate Commitments of the Lenders on such date.

 

(ii)           Each
prepayment made pursuant to this Section 2.10(b) shall be made together with
any interest accrued to the date of such prepayment on the principal amounts
prepaid and, in the case of any prepayment of a Eurocurrency Rate Advance on a
date other than the last day of an Interest Period or at its maturity, any
additional amounts which the applicable Borrower shall be obligated to
reimburse to the Lenders in respect thereof pursuant to Section 9.04(c).  The Agent shall give prompt notice of any
prepayment required under this Section 2.10(b) to the Company and the Lenders.

 

SECTION 2.11.  Increased
Costs.  (a)  If, due to either (i) the introduction
of or any change in or in the interpretation of any law or regulation or
(ii) the compliance with any guideline or request from any central bank or
other governmental authority including, without limitation, any agency of the
European Union or similar monetary or multinational authority (whether or not
having the force of law), there shall be any increase in the cost to any Lender
of agreeing to make or making, funding or maintaining Eurocurrency Rate
Advances or of agreeing to issue or of issuing or maintaining or participating
in Letters of Credit (excluding for purposes of this Section 2.11 any such
increased costs resulting from (i) taxes (as to which Section 2.14 shall
govern) and (ii) changes in the basis or rate of taxation of overall net income
or overall gross income by the United States or by the foreign jurisdiction or
state under the laws of which such Lender is organized or has its Applicable
Lending Office or any political subdivision thereof), then the Company shall
from time to time, upon demand by such Lender (with a copy of such demand to
the Agent), pay to the Agent for the account of such Lender additional amounts
sufficient to compensate such Lender for such increased cost; provided, however,
that before making any such demand, each Lender agrees to use reasonable
efforts (consistent with its internal policy and legal and regulatory
restrictions) to designate a different Applicable Lending Office if the making
of such designation would avoid the need for, or reduce the amount of, such increased
cost and would not, in the reasonable judgment of such Lender, be otherwise
disadvantageous to such Lender.  A
certificate as to the amount of such increased cost, submitted to the Company
and the Agent by such Lender, shall be conclusive and binding for all purposes,
absent manifest error.

 

(b)           If any
Lender determines that compliance with any law or regulation or any guideline
or request from any central bank or other governmental authority (whether or
not having the force of law) affects or would affect the amount of capital
required or expected to be maintained by such Lender or any corporation
controlling such Lender and that the amount of such capital is increased by or
based upon the existence of such Lender’s commitment to lend or to issue or participate
in Letters of Credit hereunder and other commitments of such

 

21

 

type or the issuance or
maintenance of or participation in the Letters of Credit (or similar contingent
obligations), then, upon demand by such Lender (with a copy of such demand to
the Agent), the Company shall pay to the Agent for the account of such Lender,
from time to time as specified by such Lender, additional amounts sufficient to
compensate such Lender or such corporation in the light of such circumstances,
to the extent that such Lender reasonably determines such increase in capital
to be allocable to the existence of such Lender’s commitment to lend or to
issue or participate in Letters of Credit hereunder or to the issuance or
maintenance of or participation in any Letters of Credit.  A certificate as to such amounts submitted to
the Company and the Agent by such Lender shall be conclusive and binding for
all purposes, absent manifest error.

 

SECTION 2.12.  Illegality.  Notwithstanding any other provision of this
Agreement, if any Lender shall notify the Agent that the introduction of or any
change in or in the interpretation of any law or regulation makes it unlawful,
or any central bank or other governmental authority asserts that it is
unlawful, for any Lender or its Eurocurrency Lending Office to perform its
obligations hereunder to make Eurocurrency Rate Advances in Dollars or any
Committed Currency or to fund or maintain Eurocurrency Rate Advances in Dollars
or any Committed Currency hereunder, (a) each Eurocurrency Rate Advance
will automatically at the end of the applicable Interest Period therefor or if
required by law, upon such demand (i) if such Eurocurrency Rate Advance is
denominated in Dollars, be Converted into a Base Rate Advance and (ii) if
such Eurocurrency Rate Advance is denominated in any Committed Currency, be
exchanged into an Equivalent amount of Dollars and be Converted into a Base
Rate Advance and (b) the obligation of the Lenders to make Eurocurrency
Rate Advances or to Convert Advances into Eurocurrency Rate Advances shall be
suspended until the Agent shall notify the Company and the Lenders that the
circumstances causing such suspension no longer exist (and the Agent shall
promptly notify the Company and the Lenders following its knowledge thereof).

 

SECTION 2.13.  Payments
and Computations.  (a)  Each Loan Party shall make each payment
hereunder and under the other Loan Documents (except with respect to principal
of, interest on, and other amounts relating to, Advances denominated in a
Committed Currency), irrespective of any right of counterclaim or set-off, not
later than 11:00 A.M. (New York City time) on the day when due in
U.S. Dollars to the Agent at the applicable Agent’s Account in same day funds.  Each Loan Party shall make each payment
hereunder and under the other Loan Documents with respect to principal of,
interest on, and other amounts relating to, Advances denominated in a Committed
Currency, irrespective of any right of counterclaim or set-off, not later than
11:00 A.M. (at the Payment Office for such Committed Currency) on the day
when due in such Committed Currency to the Agent, by deposit of such funds to
the applicable Agent’s Account in same day funds.  The Agent will promptly thereafter cause to
be distributed like funds relating to the payment of principal or interest,
fees or commissions ratably (other than amounts payable pursuant to
Section 2.11, 2.14 or 9.04(c)) to the Lenders for the account of their
respective Applicable Lending Offices, and like funds relating to the payment
of any other amount payable to any Lender to such Lender for the account of its
Applicable Lending Office, in each case to be applied in accordance with the
terms of this Agreement.  Upon any
Assuming Lender becoming a Lender hereunder as a result of a Commitment
Increase pursuant to Section 2.18 and upon the Agent’s receipt of such Lender’s
Assumption Agreement and recording of the information contained therein in the
Register, from and after the applicable Increase Date, the Agent shall make all
payments hereunder and under the other Loan Documents in respect of the
interest assumed thereby to the Assuming Lender.  Upon its acceptance of an Assignment and
Acceptance and recording of the information contained therein in the Register
pursuant to Section 9.07(c), from and after the effective date specified
in such Assignment and Acceptance, the Agent shall make all payments hereunder
and under the other Loan Documents in respect of the interest assigned thereby
to the Lender assignee thereunder, and the parties to such Assignment and
Acceptance shall make all appropriate adjustments in such payments for periods
prior to such effective date directly between themselves.

 

(b)           All
computations of interest based on clause (a) of the definition of the Base Rate
shall be made by the Agent on the basis of a year of 365 or 366 days, as the
case may be, and all computations of interest based on the Eurocurrency Rate or
the Federal Funds Rate and of fees and Letter of Credit Commissions shall be
made by the Agent on the basis of a year of 360 days (or, in each case of
Advances denominated in Committed Currencies where market practice differs, in
accordance with market practice), in each case for the actual number of days (including
the first day but excluding the last day) occurring in the period for which
such interest, fees or commissions are payable. 
Each determination by the Agent of an interest rate hereunder shall be
conclusive and binding for all purposes, absent manifest error.

 

22

 

(c)           Whenever
any payment hereunder or under the other Loan Documents shall be stated to be
due on a day other than a Business Day, such payment shall be made on the next
succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest, fee or commission, as the
case may be; provided, however, that, if such extension would
cause payment of interest on or principal of Eurocurrency Rate Advances to be
made in the next following calendar month, such payment shall be made on the
next preceding Business Day.

 

(d)           Unless the
Agent shall have received notice from any Borrower prior to the date on which
any payment is due to the Lenders hereunder that such Borrower will not make
such payment in full, the Agent may assume that such Borrower has made such
payment in full to the Agent on such date and the Agent may, in reliance upon
such assumption, cause to be distributed to each Lender on such due date an
amount equal to the amount then due such Lender.  If and to the extent such Borrower shall not
have so made such payment in full to the Agent, each Lender shall repay to the
Agent forthwith on demand such amount distributed to such Lender together with
interest thereon, for each day from the date such amount is distributed to such
Lender until the date such Lender repays such amount to the Agent, at (i) the
Federal Funds Rate in the case of Advances denominated in Dollars or (ii) the
cost of funds incurred by the Agent in respect of such amount in the case of
Advances denominated in Committed Currencies.

 

(e)           To the
extent that the Agent receives funds for application to the amounts owing by
any Borrower under or in respect of this Agreement or any Note in currencies
other than the currency or currencies required to enable the Agent to
distribute funds to the Lenders in accordance with the terms of this Section
2.13, the Agent shall be entitled to convert or exchange such funds into
Dollars or into a Committed Currency or from Dollars to a Committed Currency or
from a Committed Currency to Dollars, as the case may be, to the extent
necessary to enable the Agent to distribute such funds in accordance with the
terms of this Section 2.13; provided that each Borrower and each of the Lenders
hereby agree that the Agent shall not be liable or responsible for any loss,
cost or expense suffered by such Borrower or such Lender as a result of any
conversion or exchange of currencies affected pursuant to this Section 2.13(f)
or as a result of the failure of the Agent to effect any such conversion or
exchange; and provided further that the Borrowers agree to indemnify the Agent
and each Lender, and hold the Agent and each Lender harmless, for any and all
losses, costs and expenses incurred by the Agent or any Lender for any
conversion or exchange of currencies (or the failure to convert or exchange any
currencies) in accordance with this Section 2.13(e).

 

SECTION 2.14.  Taxes.  (a)  Any
and all payments by each Loan Party to or for the account of any Lender or the
Agent hereunder or under any other Loan Document shall be made, in accordance
with Section 2.13 or the applicable provisions of such other documents, if
any, free and clear of and without deduction for any and all present or future
taxes, levies, imposts, deductions, charges or withholdings, and all
liabilities with respect thereto, excluding, in the case of each Lender
and the Agent, taxes imposed on its overall net income, and franchise taxes
(including net profits or capital taxes) imposed on it in lieu of net income
taxes, by the jurisdiction under the laws of which such Lender or the Agent (as
the case may be) is organized or any political subdivision thereof and, in the
case of each Lender, taxes imposed on its overall net income, and franchise
taxes imposed on it in lieu of net income taxes, by the jurisdiction of such
Lender’s Applicable Lending Office or any jurisdiction in which it is otherwise
treated as doing business (other than a jurisdiction in which such Lender would
not have been treated as doing business but for and solely as a result of its
execution and delivery of any Loan Document or its exercise of its rights or
performance of its obligations thereunder or otherwise as a result of its
participation (or the participation of an entity in which it owns a beneficial
interest) in the transactions contemplated by the Loan Documents) or any
political subdivision thereof (all such non-excluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities in respect of payments
hereunder or under any other Loan Document being hereinafter referred to as “Taxes”).  In addition, it is understood and agreed that
a Loan Party shall not be required to indemnify the Agent or any Lenders for,
or pay additional amounts under this Section 2.14 with respect to, any
withholding Taxes imposed by the United States, except to the extent the
withholding Taxes would not have been imposed but for and solely as a result of
a change in applicable law occurring after (i) the date such Person became a
party to this Agreement or (ii) with respect to an assignment, participation,
acquisition, designation of a new Applicable Lending Office or the appointment
of a successor Agent, the effective date thereof except, in each case (x) to
the extent and at the rate that such Person’s predecessor was entitled to such
amounts as provided for in Section 2.14(e) or (y) if the assignment,
acquisition, designation of a new Applicable Lending Office or the appointment
of a successor Agent occurs as a result of the Borrower’s request pursuant to
Section 9.07(a).  If any Loan Party shall
be required by law to deduct

 

23

 

any Taxes from or in
respect of any sum payable hereunder or under any other Loan Document to any
Lender or the Agent, (1) 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 2.14) such Lender
or the Agent (as the case may be) receives an amount equal to the sum it would
have received had no such deductions been made, (2) such Loan Party shall
make such deductions and (3) such Loan Party shall pay the full amount
deducted to the relevant taxation authority or other authority in accordance
with applicable law.

 

(b)           In
addition, the Company shall pay any present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies that
arise from any payment made hereunder or under any other Loan Documents or from
the execution, delivery or registration of, performing under, or otherwise with
respect to, this Agreement or the other Loan Documents excluding, in each case,
such amounts that result from an assignment, grant of a participation, transfer
or designation of a new Applicable Lending Office or other office for receiving
payments under any Loan Document (hereinafter referred to as “Other Taxes”).

 

(c)           Each
Borrower shall indemnify each Lender and the Agent for and hold it harmless
against the full amount of Taxes or Other Taxes (including, without limitation,
Taxes of any kind imposed or asserted by any jurisdiction on amounts payable
under this Section 2.14) imposed on or paid by such Lender or the Agent (as
the case may be) and any liability (including penalties, interest and expenses)
arising therefrom or with respect thereto. 
This indemnification shall be made within 30 days from the date such
Lender or the Agent (as the case may be) makes written demand therefor.  A certificate from the Applicable Lender or
the Agent setting forth in reasonable detail the basis and calculation of such
amounts shall be deemed to be correct, absent manifest error.

 

(d)           Within 30
days after the date of any payment of Taxes, each Loan Party shall furnish to
the Agent, at its address referred to in Section 9.02, the original or a
certified copy of a receipt evidencing such payment to the extent such a
receipt is issued therefor, or other written proof of payment thereof that is
reasonably satisfactory to the Agent.

 

(e)           Each
Lender organized under the laws of a jurisdiction outside the United States, on
or prior to the date of its execution and delivery of this Agreement in the
case of each Initial Lender and on the date of the Assumption Agreement or the
Assignment and Acceptance pursuant to which it becomes a Lender in the case of
each other Lender, upon a change in Applicable Lending Office and from time to
time thereafter as reasonably requested in writing by the Company (but only so
long as such Lender remains lawfully able to do so), shall provide each of the
Agent and the Company with two original Internal Revenue Service
Forms W-8BEN or W-8ECI, as appropriate, or any successor or other form
prescribed by the Internal Revenue Service, certifying that such Lender is
exempt from or entitled to a reduced rate of United States withholding tax on
payments pursuant to this Agreement or any other Loan Document.  If the form provided by a Lender at the time
such Lender first becomes a party to this Agreement indicates a United States
interest withholding tax rate in excess of zero, withholding tax at such rate
shall be considered excluded from Taxes unless and until such Lender provides
the appropriate forms certifying that a lesser rate applies, whereupon
withholding tax at such lesser rate only shall be considered excluded from
Taxes for periods governed by such form; provided, however, that,
if at the date of the Assignment and Acceptance pursuant to which a Lender
assignee becomes a party to this Agreement, the Lender assignor was entitled to
payments under subsection (a) in respect of United States withholding tax
with respect to interest paid at such date, then, to such extent, the term
Taxes shall include (in addition to withholding taxes that may be imposed in
the future or other amounts otherwise includable in Taxes) United States
withholding tax, if any, applicable with respect to the Lender assignee on such
date.  If any form or document referred
to in this subsection (e) requires the disclosure of information, other
than information necessary to compute the tax payable and information required
on the date hereof by Internal Revenue Service Form W-8BEN or W-8ECI, that
the Lender reasonably considers to be confidential, the Lender shall give
notice thereof to the Company and shall not be obligated to include in such
form or document such confidential information.

 

(f)            For any
period with respect to which a Lender has failed to provide the Company with
the appropriate form, certificate or other document described in
Section 2.14(e) (other  than if such failure is due to a
change in law, or in the interpretation or application thereof, occurring
subsequent to the date on which a form, certificate or other document
originally was required to be provided, or if such form, certificate or other
document otherwise is not required under subsection (e) above), such
Lender shall not be entitled to indemnification or additional amounts under
Section 2.14(a) or (c) with respect to Taxes imposed by the United States
by reason of

 

24

 

such failure; provided,
however, that should a Lender become subject to Taxes because of its
failure to deliver a form, certificate or other document required hereunder,
the Company shall take such steps as the Lender shall reasonably request to
assist the Lender to recover such Taxes.

 

(g)           If the
Agent of any Lender determines in good faith that it has received a refund in
respect of any Taxes paid by a Borrower pursuant to this Section 2.14, it shall
within thirty (30) days from the date of such receipt pay over such refund to
the such Borrower (but only to the extent of Taxes paid pursuant to this
Section 2.14, net of all out-of-pocket expenses of such Lender, and with out
interest (other than interest paid by the relevant taxing authority with
respect to such refund); provided, however, that upon the request
of such Lender, the Borrower agrees to repay such amounts in the event such
Lender is required to repay such refund to the relevant taxing authority.  Nothing in this Section 2.14(g) shall require
the Agent or any Lender to disclose the contents of its tax returns to any
Person.

 

SECTION 2.15.  Sharing
of Payments, Etc. 
If any Lender shall obtain any payment (whether voluntary, involuntary,
through the exercise of any right of set-off, or otherwise) on account of the
Advances owing to it (other than (x) as payment of an Advance made by an
Issuing Bank pursuant to the first sentence of Section 2.03(c) or (y) pursuant
to Section 2.03(b), 2.11, 2.14 or 9.04(c)) in excess of its Ratable Share
of payments on account of the Advances obtained by all the Lenders, such Lender
shall forthwith purchase from the other Lenders such participations in the
Advances owing to them as shall be necessary to cause such purchasing Lender to
share the excess payment ratably with each of them; provided, however,
that if all or any portion of such excess payment is thereafter recovered from
such purchasing Lender, such purchase from each Lender shall be rescinded and
such Lender shall repay to the purchasing Lender the purchase price to the
extent of such recovery together with an amount equal to such Lender’s ratable
share (according to the proportion of (i) the amount of such Lender’s required
repayment to (ii) the total amount so recovered from the purchasing
Lender) of any interest or other amount paid or payable by the purchasing
Lender in respect of the total amount so recovered.  Each Borrower agrees that any Lender so
purchasing a participation from another Lender pursuant to this
Section 2.15 may, to the fullest extent permitted by law, exercise all its
rights of payment (including the right of set-off) with respect to such
participation as fully as if such Lender were the direct creditor of such
Borrower in the amount of such participation.

 

SECTION 2.16.  Evidence
of Debt.  (a)  Each Lender shall maintain in accordance with
its usual practice an account or accounts evidencing the indebtedness of each
Borrower to such Lender resulting from each Advance owing to such Lender from
time to time, including the amounts of principal and interest payable and paid
to such Lender from time to time hereunder in respect of Advances.  Each Borrower agrees that upon notice by any
Lender to such Borrower (with a copy of such notice to the Agent) to the effect
that a Note is required or appropriate in order for such Lender to evidence
(whether for purposes of pledge, enforcement or otherwise) the Advances owing
to, or to be made by, such Lender, such Borrower shall promptly execute and
deliver to such Lender a Note payable to the order of such Lender in a
principal amount up to the Revolving Credit Commitment of such Lender.  All references to Notes in the Loan Documents
shall mean Notes, if any, to the extent issued hereunder.

 

(b)           The
Register maintained by the Agent pursuant to Section 9.07(d) shall include a
control account, and a subsidiary account for each Lender, in which accounts
(taken together) shall be recorded (i) the date and amount of each Borrowing
made hereunder, the Type of Advances comprising such Borrowing and, if
appropriate, the Interest Period applicable thereto, (ii) the terms of each
Assumption Agreement and each Assignment and Acceptance delivered to and
accepted by it, (iii) the amount of any principal or interest due and payable
or to become due and payable from each Borrower to each Lender hereunder and
(iv) the amount of any sum received by the Agent from such Borrower hereunder
and each Lender’s share thereof.

 

(c)           Entries made
in good faith by the Agent in the Register pursuant to subsection (b) above,
and by each Lender in its account or accounts pursuant to subsection (a) above,
shall be prima  facie evidence of the amount of principal and
interest due and payable or to become due and payable from each Borrower to, in
the case of the Register, each Lender and, in the case of such account or
accounts, such Lender, under this Agreement, absent manifest error; provided,
however, that the failure of the Agent or such Lender to make an entry,
or any finding that an entry is incorrect, in the Register or such account or
accounts shall not limit or otherwise affect the obligations of any Borrower
under this Agreement.

 

25

 

SECTION 2.17.  Use
of Proceeds. 
The proceeds of the Advances and the Letters of Credit shall be
available (and each Borrower agrees that it shall use such proceeds) solely for
general corporate purposes of such Borrower and its Subsidiaries, including acquisition
financing relating to the merger of the Company with Great Lakes.

 

SECTION 2.18.  Increase
in the Aggregate Commitments.  (a) The Company may, at any time but in any
event not more than twice in any calendar year prior to the Termination Date,
by notice to the Agent, request that the aggregate amount of the Commitment be
increased by an amount of $10,000,000 or an integral multiple thereof (each a “Commitment
Increase”) to be effective as of a date that is at least 90 days prior to
the scheduled Termination Date then in effect (the “Increase Date”) as
specified in the related notice to the Agent; provided, however
that (i) in no event shall the aggregate amount of the Commitments at any time
exceed $750,000,000 and (ii) on the date of any request by the Company for a
Commitment Increase and on the related Increase Date the applicable conditions
set forth in Section 3.03 shall be satisfied.

 

(b)           The Agent
shall promptly notify the Lenders of a request by the Company for a Commitment
Increase, which notice shall include (i) the proposed amount of such requested
Commitment Increase, (ii) the proposed Increase Date and (iii) the date by
which Lenders wishing to participate in the Commitment Increase must commit to
an increase in the amount of their respective Commitments (the “Commitment
Date”).  Each Lender that is willing
to participate in such requested Commitment Increase (each an “Increasing
Lender”) shall, in its sole discretion, give written notice to the Agent on
or prior to the Commitment Date of the amount by which it is willing to
increase its Commitment.  If the Lenders
notify the Agent that they are willing to increase the amount of their
respective Commitments by an aggregate amount that exceeds the amount of the
requested Commitment Increase, the requested Commitment Increase shall be
allocated among the Lenders willing to participate therein in such amounts as
are agreed between the Company and the Agent.

 

(c)           Promptly
following each Commitment Date, the Agent shall notify the Company as to the
amount, if any, by which the Lenders are willing to participate in the
requested Commitment Increase.  If the
aggregate amount by which the Lenders are willing to participate in any
requested Commitment Increase on any such Commitment Date is less than the
requested Commitment Increase, then the Company may extend offers to one or
more Eligible Assignees to participate in any portion of the requested
Commitment Increase that has not been committed to by the Lenders as of the
applicable Commitment Date; provided, however, that the
Commitment of each such Eligible Assignee shall be in an amount of $5,000,000
or more.

 

(d)           On each
Increase Date, each Eligible Assignee that accepts an offer to participate in a
requested Commitment Increase in accordance with Section 2.18(b) (each such
Eligible Assignee, an “Assuming Lender”) shall become a Lender party to
this Agreement as of such Increase Date and the Commitment of each Increasing
Lender for such requested Commitment Increase shall be so increased by such amount
(or by the amount allocated to such Lender pursuant to the last sentence of
Section 2.18(b)) as of such Increase Date; provided, however,
that the Agent shall have received on or before such Increase Date the
following, each dated such date:

 

(i)            (A) certified
copies of resolutions of the Board of Directors of the Company or the Executive
Committee of such Board approving the Commitment Increase and (B) an opinion of
counsel for the Company (which may be in-house counsel), in substantially the
form of Exhibit D hereto;

 

(ii)           an
assumption agreement from each Assuming Lender, if any, in form and substance
reasonably satisfactory to the Company and the Agent (each an “Assumption
Agreement”), duly executed by such Eligible Assignee, the Agent and the
Company; and

 

(iii)          confirmation
from each Increasing Lender of the increase in the amount of its Commitment in
a writing satisfactory to the Company and the Agent.

 

On each Increase Date, upon fulfillment of the
conditions set forth in the immediately preceding sentence of this Section
2.18(d), the Agent shall notify the Lenders (including, without limitation,
each Assuming Lender) and the Company, on or before 1:00 P.M. (New York City
time), by telecopier, of the occurrence of the Commitment Increase to be effected
on such Increase Date and shall record in the Register the relevant information
with respect

 

26

 

to each Increasing Lender and each Assuming Lender on
such date.  Each Increasing Lender and
each Assuming Lender shall, before 2:00 P.M. (New York City time) on the
Increase Date, make available for the account of its Applicable Lending Office
to the Agent at the Agent’s Account, in same day funds, in the case of such
Assuming Lender, an amount equal to such Assuming Lender’s ratable portion of
the Borrowings then outstanding (calculated based on its Revolving Credit
Commitment as a percentage of the aggregate Revolving Credit Commitments
outstanding after giving effect to the relevant Commitment Increase) and, in
the case of such Increasing Lender, an amount equal to the excess of (i) such
Increasing Lender’s ratable portion of the Borrowings then outstanding
(calculated based on its Revolving Credit Commitment as a percentage of the
aggregate Revolving Credit Commitments outstanding after giving effect to the
relevant Commitment Increase) over (ii) such Increasing Lender’s ratable
portion of the Borrowings then outstanding (calculated based on its Revolving
Credit Commitment (without giving effect to the relevant Commitment Increase)
as a percentage of the aggregate Revolving Credit Commitments (without giving
effect to the relevant Commitment Increase). 
After the Agent’s receipt of such funds from each such Increasing Lender
and each such Assuming Lender, the Agent will promptly thereafter cause to be
distributed like funds to the other Lenders for the account of their respective
Applicable Lending Offices in an amount to each other Lender such that the
aggregate amount of the outstanding Advances owing to each Lender after giving
effect to such distribution equals such Lender’s ratable portion of the
Borrowings then outstanding (calculated based on its Revolving Credit
Commitment as a percentage of the aggregate Revolving Credit Commitments
outstanding after giving effect to the relevant Commitment Increase).

 

ARTICLE III

 

CONDITIONS TO EFFECTIVENESS AND LENDING

 

SECTION 3.01.  Conditions
Precedent to Effectiveness of Section 2.01. 
Section 2.01 of this Agreement shall become effective on and as of
the first date (the “Effective Date”) on which the following conditions
precedent have been satisfied:

 

(a)           There
shall have occurred no Material Adverse Change since December 31, 2004,
and no material adverse change in the business, condition (financial or otherwise),
operations or properties of Great Lakes and its Subsidiaries taken as a whole
since December 31, 2004.

 

(b)           There
shall exist no action, suit, investigation, litigation or proceeding affecting
the Company or any of its Subsidiaries pending or threatened before any court,
governmental agency or arbitrator that (i) could be reasonably likely to
have a Material Adverse Effect other than the matters described on
Schedule 3.01(b) hereto (the “Disclosed Litigation”) or a material
adverse effect on the business, condition (financial or otherwise), operations
or properties of Great Lakes and its Subsidiaries, taken as a whole, or
(ii) purports to affect the legality, validity or enforceability of this
Agreement or any Note or the consummation of the transactions contemplated
hereby, and there shall have been no material adverse change in the status, or
financial effect on the Company or any of its Subsidiaries, of the Disclosed
Litigation from that described on Schedule 3.01(b) hereto.

 

(c)           Nothing
shall have come to the attention of the Lenders during the course of their due
diligence investigation to lead them to believe that the Information Memorandum
was or has become misleading, incorrect or incomplete in any material respect
or that the business, condition (financial or otherwise), operations or
properties of the Company and its Subsidiaries, taken as a whole, are different
in any material adverse respect from that presented in the Information
Memorandum or derived by the Agent and the Lender from the public filings of
the Company and its Subsidiaries.

 

(d)           All
governmental and third party consents and approvals necessary in order to
consummate the transactions contemplated hereby shall have been obtained
(without the imposition of any conditions that are not acceptable to the
Lenders) and shall remain in effect, all applicable waiting periods in
connection with the Acquisition shall have expired without any action being
taken by any competent authority, and no law or regulation shall be applicable
in the reasonable judgment of the Lenders, in each

 

27

 

case
that restrains, prevents or imposes materially adverse conditions upon the
transactions contemplated hereby, and

 

(e)           The
Company shall have notified each Lender and the Agent in writing as to the
proposed Effective Date.

 

(f)            The
Company shall have paid all accrued fees and expenses of the Agent and the
Lenders (including the accrued and invoiced reasonable fees and expenses of
counsel to the Agent).

 

(g)           On the
Effective Date, the following statements shall be true and the Agent shall have
received for the account of each Lender a certificate signed by a duly
authorized officer of the Company, dated the Effective Date, stating that:

 

(i)            The
representations and warranties contained in Section 4.01 are correct on
and as of the Effective Date,

 

(ii)                                  No
event has occurred and is continuing that constitutes a Default, and

 

(iii)          all
conditions precedent to the consummation of the Acquisition shall have been
satisfied substantially in accordance with the terms of the Agreement and Plan
of Merger dated as of March 8, 2005 between Great Lakes, Copernicus Merger
Corporation and the Company, without any waiver or amendment not consented to
by the Required Lenders of any material term, provision or condition set forth
therein, and in compliance with all applicable laws.

 

(h)           The Agent
shall have received on or before the Effective Date the following, each dated
such day, in form and substance satisfactory to the Agent and (except for the
Notes) in sufficient copies for each Lender:

 

(i)            The Notes
to the order of the Lenders to the extent requested by any Lender pursuant to
Section 2.16.

 

(ii)           Certified
copies of the resolutions of the board of directors (or similar governing body)
of each Loan Party approving each of the Loan Documents to which it is a party,
and of all documents evidencing other necessary corporate action and
governmental approvals, if any, with respect to such Loan Document.

 

(iii)          A
certificate of each Loan Party signed on behalf of such Loan Party by its
Secretary or any Assistant Secretary, dated the Effective Date (the statements
made in which certificate shall be true on and as of the Effective Date),
certifying as to (A) a true and correct copy of the charter or similar
document of such Loan Party, (B) a true and correct copy of the bylaws or
similar document of such Loan Party as in effect on the date on which the
resolutions referred to in Section 3.01(h)(ii) were adopted and on the Effective
Date, (C) the due incorporation and good standing or valid existence of
such Loan Party under the laws of the jurisdiction of its incorporation or
formation, and the absence of any proceeding for the dissolution or liquidation
of such Loan Party and (D) certifying the names and true signatures of the
officers of such Loan Party authorized to sign each of the Loan Documents to
which it is a party and the other documents to be delivered hereunder.

 

(iv)          Certificates
in form and substance satisfactory to the Agent attesting to the Solvency of
the Company and the Company and its Subsidiaries, taken as a whole, before and
after giving effect to the merger with Great Lakes, from the chief financial
officer or other officer of the Company acceptable to the Agent.

 

28

 

(v)           Pro forma
financial statements as to the Company and forecasts prepared by management of
the Company, in form and substance satisfactory to the Lenders, of balance
sheets, income statements and cash flow statements on an annual basis through
December 31, 2009.

 

(vi)          A favorable
opinion of Skadden, Arps, Meagher & Flom LLP, counsel for the Company,
substantially in the form of Exhibit D hereto.

 

(vii)         A
favorable opinion of Shearman & Sterling LLP, counsel for the Agent,
in form and substance satisfactory to the Agent.

 

(i)            The
Company shall have terminated the commitments of the lenders and repaid or
prepaid all of the obligations under, the Credit Agreement dated as of August
16, 2004 among the Company, the lenders parties thereto and Deutsche Bank AG,
New York Branch, as administrative agent, and each of the Lenders that is a
party to such credit facility hereby waives, upon execution of this Agreement,
any notice required by said Credit Agreement relating to the termination of
commitments thereunder.

 

(j)            Liens
securing any of the public notes of the Company shall have been released.

 

(k)           Great
Lakes shall have terminated the commitments of the lenders and repaid or
prepaid all of the obligations under, the Five Year Credit Agreement dated as
of September 30, 2004 among Great Lakes, the lenders parties thereto and
Citicorp USA, Inc., as administrative agent, and each of the Lenders that is a
party to such credit facility hereby waives, upon execution of this Agreement,
any notice required by said Credit Agreement relating to the termination of
commitments thereunder.

 

SECTION 3.02.  Initial
Advance to Each Designated Subsidiary.  The obligation of each Lender to make an
initial Advance to each Designated Subsidiary is subject to the receipt by the
Agent on or before the date of such initial Advance of each of the following,
in form and substance reasonably satisfactory to the Agent and dated such date,
and (except for the Notes) in sufficient copies for each Lender:

 

(a)           The Notes
of such Designated Subsidiary to the order of the Lenders to the extent
requested by any Lender pursuant to Section 2.16.

 

(b)           Certified
copies of the resolutions of the board of directors (or similar governing body)
of such Designated Subsidiary (with a certified English translation if the
original thereof is not in English) approving this Agreement and the Notes to
be delivered by it, and of all documents evidencing other necessary corporate
action and governmental approvals, if any, with respect to this Agreement.

 

(c)           A
certificate of a proper officer of such Designated Subsidiary certifying the
names and true signatures of the officers of such Designated Subsidiary
authorized to sign its Designation Agreement and the Notes to be delivered by
it and the other documents to be delivered by it hereunder.

 

(d)           A
certificate signed by a duly authorized officer of the Company, certifying that
such Designated Subsidiary has obtained all governmental and third party
authorizations, consents, approvals (including exchange control approvals) and
licenses required under applicable laws and regulations necessary for such
Designated Subsidiary to execute and deliver its Designation Agreement and the
Notes to be delivered by it and to perform its obligations hereunder and
thereunder.

 

(e)           A
Designation Agreement duly executed by such Designated Subsidiary and the
Company.

 

(f)            Favorable
opinions of counsel (which may be in-house counsel) to such Designated
Subsidiary substantially in the form of Exhibit D hereto, and as to such other
matters as any Lender through the Agent may reasonably request.

 

29

 

(g)           Such other
approvals, opinions or documents as any Lender, through the Agent may
reasonably request.

 

SECTION 3.03.  Conditions
Precedent to Each Borrowing, Issuance and Commitment Increase.  The obligation of each Lender to make an
Advance (other than an Advance made by any Issuing Bank or any Lender pursuant
to Section 2.03(c)) on the occasion of each Borrowing, the obligation of each
Issuing Bank to issue, renew or extend a Letter of Credit and each Commitment
Increase shall be subject to the conditions precedent that the Effective Date
shall have occurred and on the date of such Borrowing, such issuance or the
applicable Increase Date (as the case may be) the following statements shall be
true (and each of the giving of the applicable Notice of Borrowing, Notice of
Issuance or request for Commitment Increase and the acceptance by any Borrower
of the proceeds of such Borrowing, such issuance or such Increase Date shall
constitute a representation and warranty by such Borrower that on the date of
such Borrowing, such issuance or such Increase Date such statements are true):

 

(a)           the
representations and warranties contained in Section 4.01 are correct in
all material respects on and as of such date, before and after giving effect to
such Borrowing, such issuance or such Commitment Increase and to the
application of the proceeds therefrom, as though made on and as of such date
(it being understood and agreed that any representation or warranty which by
its terms is made as of a specified date shall be required to be true and
correct in all material respects only as of such specified date), and
additionally, if such Borrowing or issuance shall have been requested by a
Designated Subsidiary, the representations and warranties of such Designated
Subsidiary contained in its Designation Agreement are correct in all material
respects on and as of the date of such Borrowing or such issuance, before and
after giving effect to such Borrowing, such issuance or such Commitment
Increase and to the application of the proceeds therefrom, as though made on
and as of such date, and

 

(b)           no event
has occurred and is continuing, or would result from such Borrowing, such
issuance or such Commitment Increase or from the application of the proceeds
therefrom, that constitutes a Default.

 

SECTION 3.04.  Determinations
Under Section 3.01 and 3.02.  For
purposes of determining compliance with the conditions specified in
Sections 3.01 and 3.02, each Lender shall be deemed to have consented to,
approved or accepted or to be satisfied with each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to the Lenders unless an officer of the Agent responsible for the
transactions contemplated by this Agreement shall have received notice from
such Lender prior to the date that the Company, by notice to the Agent,
designates as the proposed Effective Date or the date of the initial Advance to
the applicable Designated Subsidiary, as the case may be, specifying its
objection thereto.  The Agent shall
promptly notify the Lenders of the occurrence of the Effective Date and each
date of initial Advance to a Designated Subsidiary, as applicable.

 

ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES

 

SECTION 4.01.  Representations
and Warranties of the Company.  The
Company represents and warrants as follows:

 

(a)           Each Loan
Party and each of its Subsidiaries (i) is a corporation, limited liability
company or limited partnership duly organized, validly existing and in good
standing (or its equivalent) under the laws of the jurisdiction of its
incorporation or formation, except where the failure to be so duly organized,
validly existing or in good standing in the case of a Subsidiary organized
outside of the United States has not had, or could not reasonably be expected
to have, a Material Adverse Effect, (ii) is duly qualified and in good
standing as a foreign corporation or company in each other jurisdiction in
which it owns or leases property or in which the conduct of its business
requires it to so qualify or be licensed except where the failure to so qualify
or be licensed would not be reasonably likely to have a Material Adverse Effect
and (iii) has all requisite corporate, limited liability company or
partnership (as applicable)

 

30

 

power
and authority (including, without limitation, all governmental authorizations
to own or lease and operate its properties and to carry on its business.

 

(b)           Set forth
on Schedule 4.01(b) hereto is a complete and accurate list of all Loan Parties,
showing as of the date hereof (as to each Loan Party) the jurisdiction of its
incorporation and its U.S. taxpayer identification number or, in the case of
any non-U.S. Loan Party that does not have a U.S. taxpayer identification
number, its unique identification number (if any) issued to it by the
jurisdiction of its organization.  The copy
of the charter of each Loan Party and each amendment thereto provided pursuant
to Section 3.01(h)(iii) is a true and correct copy of each such document as of
the Effective Date, each of which is valid and in full force and effect.

 

(c)           Set forth
on Schedule 4.01(c) hereto is a complete and accurate list of all
Subsidiaries of each Loan Party, showing as of the date hereof (as to each such
Subsidiary) the jurisdiction of its formation, the number of shares, membership
interests or partnership interests (as applicable) of each class of its equity
interests authorized, and the number outstanding, on the date hereof and the
percentage of each such class of its equity interests owned (directly or
indirectly) by such Loan Party and the number of shares covered by all
outstanding options, warrants, rights of conversion or purchase and similar
rights at the date hereof.  All of the
outstanding equity interests in each Loan Party’s Subsidiaries have been
validly issued, are fully paid and non-assessable and are owned by such Loan
Party or one or more of its Subsidiaries free and clear of all Liens, except
Permitted Liens and those created under the Collateral Documents.

 

(d)           The
execution, delivery and performance by each Loan Party of each Loan Document to
which it is or is to be a party, and the incurrence of Debt hereunder, are
within such Loan Party’s corporate, limited liability company or limited
partnership (as applicable) powers, have been duly authorized by all necessary
corporate, limited liability company or limited partnership (as applicable)
action, and do not (i) contravene such Loan Party’s charter, bylaws,
limited liability company agreement, partnership agreement or other constituent
documents, (ii) violate any law, rule, regulation (including, without
limitation, Regulation X of the Board of Governors of the Federal Reserve
System), order, writ, judgment, injunction, decree, determination or award
applicable to such Loan Party, (iii) conflict with or result in the breach
of, or constitute a default or require any payment to be made under, any
contract, loan agreement, indenture, mortgage, deed of trust, lease or other
instrument binding on or affecting any Loan Party, any of its Subsidiaries or
any of their properties or (iv) except for the Liens created under the
Loan Documents, result in or require the creation or imposition of any Lien
upon or with respect to any of the properties of any Loan Party or any of its
Subsidiaries.  No Loan Party or any of
its Subsidiaries is in violation of any such law, rule, regulation, order,
writ, judgment, injunction, decree, determination or award or in breach of any
such contract, loan agreement, indenture, mortgage, deed of trust, lease or
other instrument, the violation or breach of which would be reasonably likely
to have a Material Adverse Effect.

 

(e)           No
authorization or approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body or any other third party is
required for the due execution, delivery and performance by any Loan Party of
any Loan Document to which it is or is to be a party, or for the incurrence of
Debt hereunder, except for those authorizations, approvals, actions, notices
and filings which have been duly obtained, taken, given, waived or made and are
in full force and effect.  All applicable
waiting periods in connection with the Acquisition have expired without any
action having been taken by any competent authority restraining, preventing or
imposing materially adverse conditions upon the Acquisition or the rights of
the Loan Parties or their Subsidiaries freely to transfer or otherwise dispose
of, or to create any Lien on, any properties now owned or hereafter acquired by
any of them.

 

(f)            This
Agreement has been, and each other Loan Document when delivered hereunder will
have been, duly executed and delivered by each Loan Party party thereto.  This Agreement is, and each other Loan
Document when delivered hereunder will be, the legal, valid and binding obligation
of each Loan Party party thereto, enforceable against such Loan Party in
accordance with its terms, except to the extent that the enforceability thereof
may be limited by applicable bankruptcy, insolvency, reorganization,

 

31

 

moratorium
or similar laws affecting creditors rights and by equitable principles
(regardless of whether enforcement is sought in equity or at law).

 

(g)           (i) The
Consolidated balance sheet of the Company and its Subsidiaries as at
December 31, 2004, and the related Consolidated statements of income and
cash flows of the Company and its Subsidiaries for the fiscal year then ended,
accompanied by an opinion of KPMG LLP, independent public accountants, and the
Consolidated balance sheet of the Company and its Subsidiaries as at March 31,
2005, and the related Consolidated statements of income and cash flows of the
Company and its Subsidiaries for the three months then ended, duly certified by
the chief financial officer of the Company, copies of which have been furnished
to each Lender, fairly present, subject, in the case of said balance sheet as
at March 31, 2005, and said statements of income and cash flows for the three
months then ended, to year-end audit adjustments, the Consolidated financial
condition of the Company and its Subsidiaries as at such dates and the
Consolidated results of the operations of the Company and its Subsidiaries for
the periods ended on such dates, all in accordance with generally accepted
accounting principles consistently applied. 
Since December 31, 2004, there has been no Material Adverse Change.

 

(ii)           The
Consolidated balance sheet of Great Lakes and its Subsidiaries as at
December 31, 2004, and the related Consolidated statements of income and
cash flows of Great Lakes and its Subsidiaries for the fiscal year then ended,
accompanied by an opinion of Ernst & Young LLP, independent public
accountants, and the Consolidated balance sheet of Great Lakes and its
Subsidiaries as at March 31, 2005, and the related Consolidated statements of
income and cash flows of Great Lakes and its Subsidiaries for the three months
then ended, duly certified by the chief financial officer of Great Lakes,
copies of which have been furnished to each Lender, fairly present, subject, in
the case of said balance sheet as at March 31, 2005, and said statements of
income and cash flows for the three months then ended, to year-end audit
adjustments and absence of footnotes, the Consolidated financial condition of
Great Lakes and its Subsidiaries as at such dates and the Consolidated results
of the operations of Great Lakes and its Subsidiaries for the periods ended on
such dates, all in accordance with generally accepted accounting principles
consistently applied.  Since
December 31, 2003, there has been no material adverse change in the
business, condition (financial or otherwise), operations or properties of Great
Lakes and its Subsidiaries taken as a whole.

 

(h)           The
Consolidated forecasted balance sheets, statements of income and statements of
cash flows of the Company and its Subsidiaries delivered to the Agent pursuant
to Section 3.01(h)(v) were prepared in good faith on the basis of the
assumptions stated therein, which assumptions were fair in light of the
conditions existing at the time of delivery of such forecasts, it being
understood that projections are subject to significant uncertainties and
contingencies many of which are beyond the Company’s control, and that no
guarantees can be giving that the forecasts will be realized.

 

(i)            There is
no action, suit, investigation, litigation or proceeding affecting any Loan
Party or any of its Subsidiaries, including any Environmental Action, pending
or threatened before any court, governmental agency or arbitrator that
(i) would be reasonably likely to have a Material Adverse Effect (other
than the Disclosed Litigation) or (ii) purports to affect the legality,
validity or enforceability of any Loan Document or the consummation of the
transactions contemplated hereby, and there has been no material adverse change
in the status, or financial effect on any Loan Party or any of its
Subsidiaries, of the Disclosed Litigation.

 

(j)            No
Borrower is engaged in the business of extending credit for the purpose of
purchasing or carrying margin stock (within the meaning of Regulation U
issued by the Board of Governors of the Federal Reserve System), and no
proceeds of any Advance will be used to purchase or carry any margin stock or
to extend credit to others for the purpose of purchasing or carrying any margin
stock.

 

(k)           Neither
any Loan Party nor any of its Subsidiaries is an “investment company,” or an “affiliated
person” of, or “promoter” or “principal underwriter” for, an “investment
company,” as such

 

32

 

terms
are defined in the Investment Company Act of 1940, as amended.  Neither any Loan Party nor any of its
Subsidiaries is a “holding company,” or a “subsidiary company” of a “holding
company,” or an “affiliate” of a “holding company” or of a “subsidiary company”
of a “holding company,” as such terms are defined in the Public Utility Holding
Company Act of 1935, as amended.  Neither
the making of any Advances, nor the issuance of any Letters of Credit, nor the
application of the proceeds or repayment thereof by the Borrower, nor the
consummation of the other transactions contemplated by the Loan Documents, will
violate any provision of any such Act or any rule, regulation or order of the
Securities and Exchange Commission thereunder.

 

(l)            Neither
the Information Memorandum nor any other information, exhibit or report
furnished by or on behalf of the Company or any other Borrower to the Agent or
any Lender in connection with the negotiation and syndication of this Agreement
or pursuant to the terms of this Agreement contained any untrue statement of a
material fact or omitted to state a material fact necessary to make the
statements, taken as a whole, made therein not misleading in any material
respect in light of the circumstances under which such statements were made.

 

(m)          The Company
is, individually and together with its Subsidiaries, Solvent.

 

(n)           The
Company and each of its Subsidiaries owns, or is licensed to use, all
trademarks, tradenames, copyrights, technology, know-how and processes
necessary for the conduct of its business as currently conducted except for
those the failure to own or license which could not reasonably be expected to
have a Material Adverse Effect (the “Intellectual Property”).  No claim has been asserted and is pending by
any Person challenging or questioning the use of any such Intellectual Property
or the validity or effectiveness of any such Intellectual Property, nor does
such Borrower know of any valid basis for any such claim, except, in either
case, for such claims that in the aggregate could not reasonably be expected to
have a Material Adverse Effect.  The use
of such Intellectual Property by the Company and its Subsidiaries does not
infringe on the rights of any Person, except for such claims and infringements
that, in the aggregate, could not reasonably be expected to have a Material
Adverse Effect.

 

(o)           (i)  No ERISA Event has occurred or is reasonably
expected to occur with respect to any Plan that has resulted in or is
reasonably expected to result in a liability of any Loan Party or any ERISA
Affiliate that in the aggregate could reasonably be expected to have a Material
Adverse Effect.

 

(ii)           Neither any Loan Party
nor any ERISA Affiliate has incurred or is reasonably expected to incur any
Withdrawal Liability to any Multiemployer Plan that in the aggregate could
reasonably be expected to have a Material Adverse Effect.

 

(iii)          Neither any Loan Party
nor any ERISA Affiliate has been notified by the sponsor of a Multiemployer
Plan that such Multiemployer Plan is in reorganization or has been terminated,
within the meaning of Title IV of ERISA, and no such Multiemployer Plan is
reasonably expected to be in reorganization or to be terminated, within the
meaning of Title IV of ERISA.

 

(p)           Except as
could not reasonably be expected to result in, individually or in the
aggregate, a Material Adverse Effect, the operations and properties of the
Company and each of its Subsidiaries comply in all material respects with all
applicable Environmental Laws and Environmental Permits, all past
non-compliance with such Environmental Laws and Environmental Permits has been
resolved without ongoing obligations or costs, and no circumstances exist that
could be reasonably likely to (i) form the basis of an Environmental
Action against the Company or any of its Subsidiaries or any of their
properties (whether owned, leased or operated or formerly owned leased or
operated) or (ii) cause any such property to be subject to any
restrictions on ownership, occupancy, use or transferability under any
Environmental Law.

 

33

 

(q)           Each Loan
Party and each of its Subsidiaries and Affiliates has filed, has caused to be
filed or has been included in all material tax returns (Federal, state, local
and foreign) required to be filed and has paid all taxes shown thereon to be
due, together with applicable interest and penalties.

 

(r)            Except as
could not reasonably be expected to result in, individually or in the
aggregate, a Material Adverse Effect, neither the business nor the properties
of any Loan Party or any of its Subsidiaries are affected by any unfair labor
practices complaint, union representation campaigns, strike, lockout or other
labor dispute.

 

(s)           Each Loan
Party and each of its Subsidiaries is in compliance with all contracts and
agreements to which it is a party, except such non-compliances as have not had,
and could not reasonably be expected to have, either individually or in the
aggregate, a Material Adverse Effect.

 

ARTICLE V

 

COVENANTS OF THE COMPANY

 

SECTION 5.01.  Affirmative Covenants. 
So long as any Advance shall remain unpaid, any Letter of Credit
is outstanding or any Lender shall have any Commitment hereunder, the Company
will:

 

(a)           Compliance
with Laws, Etc.  Comply, and cause
each of its Subsidiaries to comply, in all material respects, with all
applicable laws, rules, regulations and orders material to the business of the
Company and its Subsidiaries, such compliance to include, without limitation,
compliance with ERISA, Environmental Laws and the Patriot Act.

 

(b)           Payment
of Taxes, Etc.  Pay and discharge,
and cause each of its Subsidiaries to pay and discharge, before the same shall
become delinquent, (i) all material taxes, assessments and governmental
charges or levies imposed upon it or upon its property and (ii) all lawful
claims that, if unpaid, might by law become a Lien upon its property; provided,
however, that neither the Company nor any of its Subsidiaries shall be
required to pay or discharge any such tax, assessment, charge, claim or levy
that is being contested in good faith and by proper proceedings and as to which
appropriate reserves are being maintained, unless and until any Lien resulting
therefrom attaches to its property and becomes enforceable and enforcement
thereof has not been stayed.

 

(c)           Maintenance
of Insurance.  Maintain, and cause
each of its Subsidiaries to maintain, insurance with responsible and reputable
insurance companies or associations in such amounts and covering such risks as
is usually carried by companies engaged in similar businesses and owning
similar properties in the same general areas in which the Company or such
Subsidiary operates; provided, however, that the Company and its
Subsidiaries may self-insure to the same extent as other companies engaged in
similar businesses and owning similar properties in the same general areas in
which the Company or such Subsidiary operates and to the extent consistent with
prudent business practice.

 

(d)           Preservation
of Corporate Existence, Etc. 
Preserve and maintain, and cause each of its Subsidiaries to preserve
and maintain, its corporate existence, material rights (charter and statutory)
and material franchises; provided, however, that the Company and
its Subsidiaries may consummate any merger or consolidation permitted under
Section 5.02(b) and provided  further that neither the
Company nor any of its Subsidiaries shall be required to preserve any right or
franchise, or the existence of any Subsidiary that is not a Loan Party, if the
board of directors (or similar governing body) of the Company or such
Subsidiary shall determine that the preservation thereof is no longer desirable
in the conduct of the business of the Company or such Subsidiary, as the case
may be, and that the loss thereof is not disadvantageous in any material
respect to the Company, such Subsidiary or the Lenders.

 

(e)           Visitation
Rights.  At any reasonable time and
at reasonable intervals, permit the Agent or any of the Lenders or any agents
or representatives thereof, to examine and make copies of and abstracts

 

34

 

from
the records and books of account of, and visit the properties of, the Company
and any of its Subsidiaries, and to discuss the affairs, finances and accounts
of the Company and any of its Subsidiaries with any of their officers or
directors and with their independent certified public accountants; provided
that such visitation rights shall not include access to or review of any
intellectual property or trade secrets of the Company and provided, further,
that, unless an Event of Default shall have occurred and be continuing, the
Company shall have the right to have a representative present during any such
discussion with the Company’s independent certified accountants.

 

(f)            Keeping
of Books.  Keep, and cause each of
its Subsidiaries to keep, proper books of record and account, in which full and
correct entries shall be made of all financial transactions and the assets and
business of the Company and each such Subsidiary in accordance with generally
accepted accounting principles in effect from time to time.

 

(g)           Maintenance
of Properties, Etc.  Maintain and
preserve, and cause each of its Subsidiaries to maintain and preserve, all of
its material properties that are used or useful in the conduct of its business
in good working order and condition, ordinary wear and tear, casualty and
condemnation excepted.

 

(h)           Transactions
with Affiliates.  Conduct, and cause
each of its Subsidiaries to conduct, all transactions otherwise permitted under
this Agreement with any of their Affiliates on terms that are fair and
reasonable and no less favorable to the Company or such Subsidiary than it
would obtain in a comparable arm’s-length transaction with a Person not an
Affiliate, other than (i) intercompany transactions among the Company and its
Wholly-Owned Subsidiaries, (ii) customary fees and other benefits to
non-officer directors of the Company and its Subsidiaries and (iii) employment
and severance arrangements with officers and employees of the Company and its
Subsidiaries in the ordinary course of business.

 

(i)            Reporting
Requirements.  Furnish to the
Lenders:

 

(i)            as soon
as available and in any event within 10 days after the date the Company is
required to file its Form 10-Q with the Securities and Exchange Commission
(without giving effect to any extension of such due date, whether obtained by
filing the notification permitted by Rule 12b-25 or any successor provision or
otherwise), the Consolidated balance sheet of the Company and its Subsidiaries
as of the end of such quarter and Consolidated statements of income and cash
flows of the Company and its Subsidiaries for the period commencing at the end
of the previous fiscal year and ending with the end of such quarter, duly
certified (subject to year-end audit adjustments) by the chief financial
officer, controller or treasurer of the Company as having been prepared in
accordance with generally accepted accounting principles and certificates of
the chief financial officer, controller or treasurer of the Company as to
compliance with the terms of this Agreement and setting forth in reasonable
detail the calculations necessary to demonstrate compliance with
Section 5.03, provided that in the event of any change in generally
accepted accounting principles used in the preparation of such financial
statements, the Company shall also provide, if necessary for the determination
of compliance with Section 5.03, a statement of reconciliation conforming
such financial statements to GAAP;

 

(ii)           as soon as
available and in any event within 10 days after the date the Company is
required to file its Form 10-K with the Securities and Exchange Commission
(without giving effect to any extension of such due date, whether obtained by
filing the notification permitted by Rule 12b-25 or any successor provision or
otherwise), a copy of the annual audit report for such year for the Company and
its Subsidiaries, containing the Consolidated balance sheet of the Company and
its Subsidiaries as of the end of such fiscal year and Consolidated statements
of income and cash flows of the Company and its Subsidiaries for such fiscal
year, in each case accompanied by an opinion by KPMG LLP or other nationally
recognized independent public accountants without any going concern
qualification and certificates of the chief financial officer, controller or
treasurer of the Company as to compliance with the terms of this Agreement and
setting forth in reasonable detail the calculations necessary to demonstrate
compliance with

 

35

 

Section 5.03,
provided that in the event of any change in generally accepted
accounting principles used in the preparation of such financial statements, the
Company shall also provide, if necessary for the determination of compliance
with Section 5.03, a statement of reconciliation conforming such financial
statements to GAAP;

 

(iii)          as
soon as available and in any event within 75 days after the beginning of each
fiscal year of the Company the budget for such fiscal year of the Company for
such fiscal year certified by the chief financial officer, controller or
treasurer of the Company;

 

(iv)          as soon as
possible and in any event within five days after the occurrence of each Default
continuing on the date of such statement, a statement of the chief financial
officer of the Company setting forth details of such Default and the action
that the Company has taken and proposes to take with respect thereto;

 

(v)           promptly
after the sending or filing thereof, copies of all reports that the Company
sends to any of its securityholders, and copies of all reports and registration
statements that the Company or any Subsidiary files with the Securities and
Exchange Commission or any national securities exchange;

 

(vi)          promptly
after the commencement thereof, notice of all actions and proceedings before
any court, governmental agency or arbitrator affecting the Company or any of
its Subsidiaries of the type described in Section 4.01(i); and

 

(vii)         such
other information respecting the Company or any of its Subsidiaries as any
Lender through the Agent may from time to time reasonably request.

 

(j)            Covenant
to Guarantee Obligations and Provide Security.  Upon (x) the formation or acquisition of any
new direct or indirect Subsidiaries by any Loan Party or (y) the commencement
of the Security Period, then at the Company’s expense:

 

(i)            within 10
Business Days after such formation or acquisition, cause each such Subsidiary
that is not (A) a controlled foreign corporation of the Company under Section
957 of the Internal Revenue Code (a “CFC”), (B) a Subsidiary that
engages in no other activity other than the ownership of the equity of one or
more CFCs (a “CFC Holdco”), (C) a special purpose corporation formed in
connection with a securitization transaction or (D) a captive insurance company
(each of the Subsidiaries described in clauses (A), (B), (C) and (D) being an “Excluded
Subsidiary”), to duly execute and deliver to the Agent a guaranty or
guaranty supplement, in form and substance reasonably satisfactory to the
Agent, guaranteeing the other Loan Parties’ obligations under the Loan
Documents,

 

(ii)           within 30
days after the commencement of the Security Period, execute, and cause each
Subsidiary that is not an Excluded Subsidiary to execute and deliver pledges,
assignments and other security agreements as specified by, and in form and
substance reasonably satisfactory to, the Agent to create Liens securing
payment of all of the obligations of such Subsidiary or Loan Party,
respectively, under the Loan Documents in favor of the Agent for the benefit of
the Lenders on the equity interests of each of the Company’s Subsidiaries; provided
that (A) the stock of any Subsidiary held by a CFC or a CFC Holdco shall not be
required to be pledged and (B) if such new property is equity interests in a
CFC or a CFC Holdco, no more than 66% of the equity interests in a CFC or a CFC
Holdco shall be pledged in favor of the Agent and the Lenders,

 

(iii)          if
the Security Period is in effect, within 30 days after such formation or
acquisition of any new Subsidiary duly execute and deliver and cause such
Subsidiary and each

 

36

 

Loan
Party acquiring equity interests in such Subsidiary to duly execute and deliver
to the Agent documents as specified in clause (ii) above,

 

(iv)          within 60
days after such formation or acquisition or the commencement of the Security
Period, as the case may be, deliver to the Agent, upon the request of the Agent
in its sole discretion, a signed copy of a favorable opinion, addressed to the
Agent and the Lenders, of counsel for the Loan Parties reasonably acceptable to
the Agent as to (1) the matters contained in clauses (i), (ii) and (iii)
above, (2) such guaranties, guaranty supplements, pledges, assignments and
security agreements being legal, valid and binding obligations of each Loan
Party party thereto enforceable in accordance with their terms, (3) such
pledges, assignments, security agreements and other actions being sufficient to
create valid perfected Liens on such equity interests and (4) such other
matters as the Agent may reasonably request,

 

(v)           at any
time and from time to time, promptly execute and deliver, and cause each Loan
Party and each newly acquired or newly formed Subsidiary (other than any
Excluded Subsidiary) to execute and deliver, any and all further instruments
and documents and take, and cause each Loan Party and each newly acquired or
newly formed Subsidiary (other than any Excluded Subsidiary) to take, all such
other action as the Agent may deem necessary or desirable in obtaining the full
benefits of, or in perfecting and preserving the Liens of, such guaranties,
pledges, assignments, and security agreements.

 

Upon the termination of the Security Period and at the
request and sole expense of the Company, the security interests shall terminate
on and subject to the terms of the Collateral Documents, and the parties shall
take such further action all as provided therein.

 

(k)           Further
Assurances.  Promptly upon request by
the Agent, or any Lender through the Agent, do, execute, acknowledge, deliver,
record, re-record, file, re-file, register and re-register any and all such
further acts, pledge agreements, assignments, financing statements and
continuations thereof, termination statements, notices of assignment, transfers,
certificates, assurances and other instruments as the Agent, or any Lender
through the Agent, may reasonably require from time to time in order to
(i) carry out more effectively the purposes of the Loan Documents,
(ii) to the fullest extent permitted by applicable law, subject any Loan
Party’s or any of its Subsidiaries’ properties, assets, rights or interests to
the Liens now or hereafter intended to be covered by any of the Collateral
Documents, (iii) perfect and maintain the validity, effectiveness and
priority of any of the Collateral Documents and any of the Liens intended to be
created thereunder and (iv) assure, convey, grant, assign, transfer,
preserve, protect and confirm more effectively unto the Secured Parties the
rights granted or now or hereafter intended to be granted to the Secured
Parties under any Loan Document or under any other instrument executed in
connection with any Loan Document to which any Loan Party or any of its
Subsidiaries is or is to be a party, and cause each of its Subsidiaries to do
so.

 

SECTION 5.02.  Negative
Covenants.  So long as any Advance
shall remain unpaid, any Letter of Credit is outstanding or any Lender shall
have any Commitment hereunder, the Company will not:

 

(a)           Liens, Etc.  Create
or suffer to exist, or permit any of its Subsidiaries to create or suffer to
exist, any Lien on or with respect to any of its properties, whether now owned
or hereafter acquired, or assign, or permit any of its Subsidiaries to assign,
any right to receive income, other than:

 

(i)            Permitted
Liens and Liens, if any, created under the Loan Documents (including, if
applicable, Liens that are required by the terms of the applicable indentures
existing on the date hereof to secure equally and ratably the Debt issued under
such indentures),

 

(ii)           purchase
money Liens upon or in any real property or equipment acquired or held by the
Company or any Subsidiary in the ordinary course of business to secure the
purchase price of such property or equipment or to secure Debt incurred solely for
the purpose of financing

 

37

 

the
acquisition of such property or equipment, or Liens existing on such property
or equipment at the time of its acquisition (other than any such Liens created
in contemplation of such acquisition that were not incurred to finance the
acquisition of such property) or extensions, renewals or replacements of any of
the foregoing for the same or a lesser amount, provided, however,
that no such Lien shall extend to or cover any properties of any character
other than the real property or equipment being acquired, and no such
extension, renewal or replacement shall extend to or cover any properties not
theretofore subject to the Lien being extended, renewed or replaced, provided
further that the aggregate principal amount of the indebtedness secured
by the Liens referred to in this clause (ii) shall not exceed $100,000,000
at any time outstanding,

 

(iii)          the
Liens existing on the Effective Date and described on Schedule 5.02(a)
hereto and other Liens aggregating not more than $10,000,000 existing on the
Effective Date on assets of Subsidiaries of the Company organized outside of
the United States,

 

(iv)          Liens on
property of a Person existing at the time such Person is merged into or consolidated
with the Company or any Subsidiary of the Company or becomes a Subsidiary of
the Company; provided that such Liens were not created in contemplation
of such merger, consolidation or acquisition and do not extend to any assets
other than those of the Person so merged into or consolidated with the Company
or such Subsidiary or acquired by the Company or such Subsidiary,

 

(v)           assignments
of the right to receive income (including factoring of accounts receivable) or
Liens that arise in connection with receivables securitization programs, in an
aggregate principal amount not to exceed $325,000,000 at any time outstanding
(for purposes of this clause (v), the “principal amount” of a receivables
securitization program shall mean the amount invested by investors that are not
Affiliates of the company and paid to the Company or its Subsidiaries, as
reduced by the aggregate amounts received by such investors from the payment of
receivables and applied to reduce such invested amounts)),

 

(vi)          other Liens
securing obligations in an aggregate principal amount not to exceed $75,000,000
at any time outstanding prior to the Investment Grade Rating Date, and not to
exceed $200,000,000 at any time outstanding on or after the Investment Grade
Rating Date,

 

(vii)         Liens
securing Hedge Agreements in an amount not to exceed $10,000,000 at any time
outstanding, and

 

(viii)        the
replacement, extension or renewal of any Lien permitted by clause (iii)
and clause (iv) above upon or in the same property theretofore subject thereto
or the replacement, extension or renewal (without increase in the amount or
change in any direct or contingent obligor) of the Debt secured thereby.

 

(b)           Mergers, Etc.  Merge
into or consolidate with any Person or permit any Person to merge into it, or permit
any of its Subsidiaries to do so, except that:

 

(i)            the
Company may consummate the Acquisition;

 

(ii)           any
Subsidiary of the Company may merge into or consolidate with any other
Subsidiary of the Company; provided that, in the case of any such merger
or consolidation, the Person formed by such merger or consolidation shall be a
Wholly-Owned Subsidiary of the Company; and provided  further
that, in the case of any such merger or consolidation to which a Subsidiary
Guarantor is a party, the Person formed by such merger or consolidation shall
be a Subsidiary Guarantor;

 

38

 

(iii)          as
part of any acquisition permitted under Section 5.02(g), any Subsidiary of the
Company may merge into or consolidate with any other Person or permit any other
Person to merge into or consolidate with it; provided that the Person
surviving such merger shall be a Wholly-Owned Subsidiary of the Company; and provided
further that, in the case of any merger or consolidation to which a Subsidiary
Guarantor is a party, the Person formed by such merger or consolidation shall
be a Subsidiary Guarantor;

 

(iv)          as part of
any sale or other disposition permitted under Section 5.02(f) (other than
clause (ii) thereof), any Subsidiary of the Company may merge into or
consolidate with any other Person or permit any other Person to merge into or
consolidate with it; and

 

(v)           any of the
Company’s Subsidiaries may merge into the Company;

 

provided,
however, that in each case, immediately before and after giving effect
thereto, no Default shall have occurred and be continuing and, in the case of
any such merger to which the Company is a party, the Company is the surviving
corporation.

 

(c)           Accounting
Changes.  Make or permit, or permit
any of its Subsidiaries to make or permit, any change in accounting policies or
reporting practices, except as required or permitted by generally accepted
accounting principles.

 

(d)           Subsidiary
Debt.  Permit any of its Subsidiaries
that are not Subsidiary Guarantors to create or suffer to exist, any Debt other
than:

 

(i)            Debt owed
to the Company or to a Wholly-Owned Subsidiary of the Company or Debt arising
under the Loan Documents,

 

(ii)           Debt
existing on the Effective Date and described on Schedule 5.02(d) hereto
(the “Existing Debt”), and any Debt extending the maturity of, or
refunding or refinancing, in whole or in part, the Existing Debt, provided
that the principal amount of such Existing Debt shall not be increased above
the principal amount thereof outstanding immediately prior to such extension,
refunding or refinancing, and the direct and contingent obligors therefor shall
not be changed, as a result of or in connection with such extension, refunding
or refinancing,

 

(iii)          Debt
secured by Liens permitted by Section 5.02(a)(ii) or (iv),

 

(iv)          Debt
arising in connection with receivables securitization programs to the extent
permitted by Section 5.02(a)(v),

 

(v)           Debt of a
Person existing at the time such Person is merged into or consolidated with the
Company or any Subsidiary of the Company or becomes a Subsidiary of the
Company; provided that such Debt was not created in contemplation of
such merger, consolidation or acquisition,

 

(vi)          Debt
consisting of guarantees of Debt which is otherwise permitted by this Section
5.02(d),

 

(vii)         Hedge
Agreements permitted under Section 5.02(k) having an aggregate unrealized net
loss position, if any, on a marked to market basis determined as of any date of
determination of Covenant Debt not to exceed $10,000,000,

 

(viii)        other
Debt (whether secured or unsecured) to the extent such Debt would be permitted
to be secured under Section 5.02(a)(vi), and

 

39

 

(ix)           endorsement
of negotiable instruments for deposit or collection or similar transactions in
the ordinary course of business.

 

(e)           Lease
Obligations.  Create, incur, assume
or suffer to exist, or permit any of its Subsidiaries to create, incur, assume
or suffer to exist, any obligations as lessee for the rental or hire of real or
personal property of any kind under sale and leaseback arrangements that would
cause the direct and contingent liabilities of the Company and its
Subsidiaries, on a Consolidated basis, in respect of all such obligations to
exceed $50,000,000 payable in any period of 12 consecutive months prior to the
Investment Grade Rating Date, and not to exceed $100,000,000 payable in any
period of 12 consecutive months on or after the Investment Grade Rating Date.

 

(f)            Sales,
Etc. of Assets.  Until either (x) the
Company has an Investment Grade Rating or (y) (1) the Public Debt Ratings are
at least BB+ by S&P and Ba1 by Moody’s and (2) the ratio of Covenant Debt
of the Company and its Subsidiaries at such date to Consolidated EBITDA of the
Company and its Subsidiaries for the most recently completed four consecutive
fiscal quarters is less than 3.00 to 1.00, sell, lease, transfer or otherwise
dispose of, or permit any of its Subsidiaries to sell, lease, transfer or
otherwise dispose of, any assets, or grant any option or other right to
purchase, lease or otherwise acquire any assets (unless such option is
conditioned upon approval of the Required Lenders or termination of this
Agreement), except (i) sales of inventory in the ordinary course of its
business, (ii) in a transaction authorized by subsection (b) of this
Section, (iii) in transactions between or among the Company and its
Wholly-Owned Subsidiaries, (iv) dispositions of obsolete or worn-out tools,
equipment or other property no longer used or useful in business and sales of
intellectual property determined to be uneconomical, negligible or obsolete,
(v) licenses and sub-licenses of intellectual property incurred in the ordinary
course of business, (vi) dispositions of Marketable Securities, (vii) sales of
accounts receivable to the extent permitted by Section 5.02(a)(v), (viii)
leases of real property and (ix) sales of assets for fair value in an
aggregate amount not to exceed $25,000,000 or, if the Increase Conditions (as
set forth below) are met, $50,000,000 in any year, provided that in the
case of the sale of any asset in a single transaction or a series of related
transactions in an aggregate amount exceeding $15,000,000, the fair value of
such asset shall have been determined in good faith by the Board of Directors
of the Company.  The Increase Conditions
are met on any date that the Public Debt Ratings are at least BB+ by S&P
and Ba1 by Moody’s and the ratio of Covenant Debt of the Company and its
Subsidiaries at such date to Consolidated EBITDA of the Company and its Subsidiaries
for the most recently completed four consecutive fiscal quarters is not less
than 3.00 to 1.00.

 

(g)           Investments
in Other Persons.  Until the Company
has an Investment Grade Rating, make or hold, or permit any of its Subsidiaries
to make or hold, any Investment in any Person other than:

 

(i)            (A)
Investments by the Company and its Subsidiaries in their Subsidiaries
outstanding on the date hereof, (B) additional Investments by the Company and
its Subsidiaries in Subsidiary Guarantors, (C) additional Investments by
Subsidiaries of the Company that are not Loan Parties in other Subsidiaries
that are not Subsidiary Guarantors and (D) additional Investments by the Loan
Parties in Wholly-Owned Subsidiaries that are not Loan Parties in an aggregate
amount invested from the date hereof not to exceed $100,000,000;

 

(ii)           loans and
advances to employees in the ordinary course of the business of the Company and
its Subsidiaries as presently conducted in an aggregate principal amount not to
exceed $5,000,000 at any time outstanding;

 

(iii)          Investments
existing on the date hereof, including those listed on Schedule 5.02(g), and
Investments in Marketable Securities;

 

(iv)          Investments
consisting of intercompany Debt;

 

40

 

(v)           Investments
received in settlement of claims against another Person in connection with a
bankruptcy proceeding against such Person;

 

(vi)          Investments
arising in connection with receivables securitization programs to the extent
permitted by Section 5.02(a)(v),

 

(vii)         the
purchase or other acquisition of all of the equity interests in any Person
that, upon the consummation thereof, will be a Wholly-Owned Subsidiary of the
Company or one or more of its Wholly-Owned Subsidiaries (including, without limitation,
as a result of a merger or consolidation) and the purchase or other acquisition
by the Company or one or more of its Wholly-Owned Subsidiaries of all or
substantially all of the property and assets of any Person; provided
that, with respect to each purchase or other acquisition made pursuant to this
clause (vii):

 

(A)          the
Loan Parties and any such newly created or acquired Subsidiary shall comply
with the requirements of Section 5.01(j);

 

(B)           the
lines of business of the Person to be (or the property and assets of which are
to be) so purchased or otherwise acquired shall be substantially the same lines
of business as one or more of the principal businesses of the Company and its
Subsidiaries in the ordinary course or complimentary to such lines of business;

 

(C)           the
total cash consideration (including, without limitation, earnouts and other
contingent payment obligations to, and the aggregate amounts paid or to be paid
under noncompete, consulting and other affiliated agreements with, the sellers
of such Person or assets and all assumptions of debt, liabilities and other
obligations in connection therewith) paid by or on behalf of the Company and
its Subsidiaries for any such purchase or other acquisition, when aggregated
with the total cash consideration paid by or on behalf of the Company and its
Subsidiaries for all other purchases and other acquisitions made by the Company
and its Subsidiaries pursuant to this clause (vii), shall not exceed
$100,000,000;

 

(D)          (1)
immediately before and immediately after giving effect to any such purchase or
other acquisition, no Default shall have occurred and be continuing and (2)
immediately after giving effect to such purchase or other acquisition, the
Company and its Subsidiaries shall be in pro forma compliance with all of the
covenants set forth in Section 5.03, such compliance to be determined on the
basis of financial statements of such Person or assets as though such purchase
or other acquisition had been consummated as of the first day of the fiscal
period covered thereby; and

 

(E)           the
Company shall have delivered to the Agent, on behalf of the Lenders, at least
five Business Days prior to the date on which any such purchase or other
acquisition is to be consummated, a certificate of the chief financial officer,
controller or treasurer of the Company, in form and substance reasonably
satisfactory to the Agent, certifying that all of the requirements set forth in
this clause (vii) have been satisfied or will be satisfied on or prior to the
consummation of such purchase or other acquisition; and

 

(viii)        Investments
by the Company and its Subsidiaries not otherwise permitted under this Section
5.02(g) in an aggregate amount not to exceed $50,000,000; provided that,
with respect to each Investment made after the date hereof pursuant to this clause (viii):

 

(A)          such
Investment shall be in property and assets which are part of, or in lines of
business that are, substantially the same lines of business as one or more of
the principal businesses of the Company and its Subsidiaries in the ordinary
course or complimentary lines of business;

 

41

 

(B)           any
determination of the amount of such Investment shall include all cash
consideration (including, without limitation, earnouts and other contingent
payment obligations to, and the aggregate amounts paid or to be paid under
noncompete, consulting and other affiliated agreements with, the sellers of
such investment and all assumptions of debt, liabilities and other obligations
in connection therewith) paid by or on behalf of the Company and its
Subsidiaries in connection with such Investment; and

 

(C)           (1)
immediately before and immediately after giving effect to any such purchase or
other acquisition, no Default shall have occurred and be continuing and (2)
immediately after giving effect to such purchase or other acquisition, the
Company and its Subsidiaries shall be in pro forma compliance with all of the
covenants set forth in Section 5.03, such compliance to be determined on the
basis of financial statements for such Investment as though such Investment had
been consummated as of the first day of the fiscal period covered thereby.

 

(h)           Change
in Nature of Business.  (i)  Make, or permit any of its Subsidiaries to
make, any material change in the nature of its business as carried on at the
date hereof; (ii) permit any entity created as a special purpose entity in
connection with any receivables securitization program to own any material
assets or have any material liabilities other than in connection with its
activities as a special purpose vehicle to facilitate such receivables
securitization program; and (iii) permit Crompton International Corp. to engage
in any material operations, or own any material assets or have any material liabilities
other than its ownership of the equity interests of Subsidiaries of the Company
organized in jurisdictions outside of the United States, in each case so long
as Crompton International Corp. is not a Subsidiary Guarantor.

 

(i)            Negative
Pledge.  Enter into or suffer to
exist, or permit any of its Subsidiaries to enter into or suffer to exist, any
agreement prohibiting or conditioning the creation or assumption of any Lien
upon any of its property or assets except (i) agreements in favor of the
Lenders or (ii) prohibitions or conditions under (A) indentures,
agreements or instruments in effect on the date hereof and any similar
indentures, agreements or instruments that are no more restrictive as to the
ability of the Company or its Subsidiaries to incur Liens than such existing
indentures, agreements or instruments, (B) any purchase money Debt solely
to the extent that the agreement or instrument governing such Debt prohibits a
Lien on the property acquired with the proceeds of such Debt, (C) any Capitalized
Lease solely to the extent that such Capitalized Lease prohibits a Lien on the
property subject thereto, (D) any agreement in effect on the date any
Person first becomes a Subsidiary of the Company (so long as such agreement was
not entered into solely in contemplation of such Person becoming a Subsidiary
of the Company), (E) any restrictions consisting of customary provisions
restricting assignment, subletting or other transfers contained in leases,
licenses and other agreements entered into in the ordinary course of business
so long as such restrictions do not extend to assets other than those that are
the subject of such lease, license or other agreement or (F) restrictions with
respect to any asset pending the close of the sale of such asset.

 

(j)            Partnerships,
Etc.  Until the Company has an
Investment Grade Rating, become a general partner in any general or limited
partnership or joint venture, or permit any of its Subsidiaries to do so, other
than any Subsidiary the sole assets of which consist of its interest in such
partnership or joint venture.

 

(k)           Speculative
Transactions.  Engage, or permit any
of its Subsidiaries to engage, in any transaction involving commodity options
or futures contracts or any similar speculative transactions (including,
without limitation, take-or-pay contracts) solely for speculative purposes or
other than for the purpose of hedging risks associated with the businesses of
the Company and its Subsidiaries in the ordinary course of such businesses.

 

(l)            Payment
Restrictions Affecting Subsidiaries. 
Directly or indirectly, enter into or suffer to exist, or permit any of
its Subsidiaries to enter into or suffer to exist, any agreement or arrangement
limiting the ability of any of its Subsidiaries to declare or pay dividends or
other distributions in respect of its Equity Interests or repay or prepay any
Debt owed to, make loans or advances to, or otherwise transfer

 

42

 

assets
to or make Investments in, the Company or any Subsidiary of the Company
(whether through a covenant restricting dividends, loans, asset transfers or
investments, a financial covenant or otherwise), except (i) the Loan Documents,
(ii) any indenture, agreement or instrument existing on the date hereof
and any similar indentures, agreements or instruments that are no more
restrictive as to the ability of the Company or its Subsidiaries to declare or
pay dividends or other distributions in respect of its Equity Interests or
repay or prepay any Debt than such existing indentures, agreements or
instruments, (iii) any agreement in effect at the time a Person first became a
Subsidiary of the Company, so long as such agreement was not entered into
solely in contemplation of such Person becoming a Subsidiary of the Company,
(iv) any restrictions consisting of customary provisions restricting
assignment, subletting or other transfers contained in leases, licenses and
other agreements entered into in the ordinary course of business so long as
such restrictions do not extend to assets other than those that are the subject
of such lease, license or other agreement, (v) restrictions with respect to any
asset pending the close of the sale of such asset, (vi) any restriction or
encumbrance on the transfer of any assets subject to the Liens permitted by
Section 5.02(a)(ii) or (v), or (vii) under applicable law.

 

SECTION 5.03.  Financial Covenants. 
So long as any Advance shall remain unpaid, any Letter of Credit
is outstanding or any Lender shall have any Commitment hereunder, the Company
will:

 

(a)           Leverage
Ratio.  Maintain, as of any date, a
ratio of Covenant Debt of the Company and its Subsidiaries at such date to
Consolidated EBITDA of the Company and its Subsidiaries for the most recently
completed four consecutive fiscal quarters of not greater than the amount set
forth below for each period set forth below:

 

	
  Quarter

  Ending On

  	
   

  	
  Ratio

  	
   

  
	
  June 30, 2005

  	
   

  	
  4.00 : 1.00

  	
   

  
	
  September 30,
  2005

  	
   

  	
  4.00 : 1.00

  	
   

  
	
  December 31,
  2005

  	
   

  	
  3.25 : 1.00

  	
   

  
	
  March 31, 2006

  	
   

  	
  3.25 : 1.00

  	
   

  
	
  June 30, 2006

  	
   

  	
  3.25 : 1.00

  	
   

  
	
  September 30,
  2006

  	
   

  	
  3.25 : 1.00

  	
   

  
	
  December 31,
  2006 and thereafter

  	
   

  	
  3.00 : 1.00

  	
   

  

 

(b)           Interest
Coverage Ratio.  Maintain a ratio of
Consolidated EBITDA of the Company and its Subsidiaries to Interest Expense of
the Company and its Subsidiaries, in each case for the period of four
consecutive financial quarters most recently ended of not less than the amount
set forth below for each period set forth below:

 

	
  Quarter

  Ending On

  	
   

  	
  Ratio

  	
   

  
	
  June 30, 2005

  	
   

  	
  3.75 : 1.00

  	
   

  
	
  September 30,
  2005

  	
   

  	
  3.75 : 1.00

  	
   

  
	
  December 31,
  2005

  	
   

  	
  4.00 : 1.00

  	
   

  
	
  March 31, 2006

  	
   

  	
  4.25 : 1.00

  	
   

  
	
  June 30, 2006

  	
   

  	
  4.25 : 1.00

  	
   

  
	
  September 30,
  2006

  	
   

  	
  4.25 : 1.00

  	
   

  
	
  December 31,
  2006 and thereafter

  	
   

  	
  4.50 : 1.00

  	
   

  

 

43

 

ARTICLE VI

 

EVENTS OF DEFAULT

 

SECTION 6.01.  Events
of Default.  If any of the following
events (“Events of Default”) shall occur and be continuing:

 

(a)           The
Company or any other Borrower shall fail to pay any principal of any Advance
when the same becomes due and payable; or the Company or any other Borrower
shall fail to pay any interest on any Advance or make any other payment of fees
or other amounts payable under this Agreement or any Note within three Business
Days after the same becomes due and payable; or

 

(b)           Any representation
or warranty made by any Loan Party herein or by any Loan Party (or any of its
officers) in connection with this Agreement or by any Designated Subsidiary in
the Designation Agreement pursuant to which such Designated Subsidiary became a
Borrower hereunder shall prove to have been incorrect in any material respect
when made; or

 

(c)           (i) The
Company shall fail to perform or observe any term, covenant or agreement
contained in Section 5.01(d), (e), (h) or (i), 5.02 or 5.03, or
(ii) the Company shall fail to perform or observe any other term, covenant
or agreement contained in this Agreement on its part to be performed or
observed if such failure shall remain unremedied for 30 days after written
notice thereof shall have been given to the Company by the Agent or any Lender;
or

 

(d)           The
Company or any of its Subsidiaries shall fail to pay any principal of or
premium or interest on any Debt that is outstanding in a principal or notional
amount of at least $25,000,000 in the aggregate (but excluding Debt outstanding
hereunder) of the Company or such Subsidiary (as the case may be), when the
same becomes due and payable (whether by scheduled maturity, required
prepayment, acceleration, demand or otherwise), and such failure shall continue
after the applicable grace period, if any, specified in the agreement or
instrument relating to such Debt; or any other event shall occur or condition
shall exist under any agreement or instrument relating to any such Debt and
shall continue after the applicable grace period, if any, specified in such
agreement or instrument, if the effect of such event or condition is to
accelerate, or to permit the acceleration of, the maturity of such Debt; or any
such Debt shall be declared to be due and payable, or required to be prepaid or
redeemed (other than by a regularly scheduled required prepayment or
redemption), purchased or defeased, or an offer to prepay, redeem, purchase or
defease such Debt shall be required to be made (other than prepayments on
customary terms in connection with sales of assets), in each case prior to the
stated maturity thereof; or

 

(e)           The
Company or any of its Subsidiaries shall generally not pay its debts as such
debts become due, or shall admit in writing its inability to pay its debts
generally, or shall make a general assignment for the benefit of creditors; or
any proceeding shall be instituted by or against the Company or any of its
Subsidiaries seeking to adjudicate it bankrupt or insolvent, or seeking
liquidation, winding up, reorganization, arrangement, adjustment, protection,
relief, or composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors, or seeking the entry of an
order for relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property and, in the
case of any such proceeding instituted against it (but not instituted by it),
either such proceeding shall remain undismissed or unstayed for a period of 60
days, or any of the actions sought in such proceeding (including, without
limitation, the entry of an order for relief against, or the appointment of a
receiver, trustee, custodian or other similar official for, it or for any
substantial part of its property) shall occur; or the Company or any of its
Subsidiaries shall take any corporate action to authorize any of the actions
set forth above in this subsection (e); or

 

(f)            Judgments
or orders for the payment of money in excess of $25,000,000 in the aggregate
shall be rendered against the Company or any of its Subsidiaries and either
(i) enforcement proceedings shall have been commenced by any creditor upon
such judgment or order and not been stayed or (ii) there shall be any
period of 10 consecutive days during which a stay of enforcement of such
judgment or order, by reason of a pending appeal or otherwise, shall not be in
effect; provided, however, that any such judgment or order shall
not be an Event of Default under this Section 6.01(f) if and for so long
as (i) the amount of such judgment or order is covered by a valid and
binding policy of insurance between the

 

44

 

defendant
and the insurer covering payment thereof and (ii) such insurer, which
shall be rated at least “A” by A.M. Best Company, has been notified of, and has
not disputed in writing the claim made for payment of, the amount of such
judgment or order; or

 

(g)           (i) Any
Person or two or more Persons acting in concert shall have acquired beneficial
ownership (within the meaning of Rule 13d-3 of the Securities and Exchange
Commission under the Securities Exchange Act of 1934), directly or indirectly,
of Voting Stock of the Company (or other securities convertible into such
Voting Stock) representing 35% or more of the combined voting power of all
Voting Stock of the Company; or (ii) during any period of up to 24
consecutive months, commencing after the date of this Agreement, individuals
who at the beginning of such 24-month period were directors of the Company,
together with individuals who were either (x) elected by a majority of the
remaining members of the board of directors of the Company or (y) nominated for
election by a majority of the remaining members of the board of directors of
the Company, shall cease for any reason to constitute a majority of the board
of directors of the Company; or

 

(h)           The
Company or any of its ERISA Affiliates shall incur, or shall be reasonably
likely to incur liability in excess of $25,000,000 in the aggregate as a result
of one or more of the following: 
(i) the occurrence of any ERISA Event; (ii) the partial or
complete withdrawal of the Company or any of its ERISA Affiliates from a
Multiemployer Plan; or (iii) the reorganization or termination of a
Multiemployer Plan; or

 

(i)            any
Guaranty or any Collateral Document after delivery thereof pursuant to
Section 3.01 or 5.01(j) shall for any reason cease to be valid and binding
on or enforceable against any Loan Party party to it, or any such Loan Party
shall so state in writing;

 

then, and in any such event, the Agent (i) shall
at the request, or may with the consent, of the Required Lenders, by notice to
the Borrowers, declare the obligation of each Lender to make Advances (other
than Advances to be made by an Issuing Bank or a Lender pursuant to Section
2.03(c)) and of the Issuing Banks to issue Letters of Credit to be terminated,
whereupon the same shall forthwith terminate, and (ii) shall at the
request, or may with the consent, of the Required Lenders, by notice to the Borrowers,
declare the Advances, all interest thereon and all other amounts payable under
this Agreement to be forthwith due and payable, whereupon the Advances, all
such interest and all such amounts shall become and be forthwith due and
payable, without presentment, demand, protest or further notice of any kind,
all of which are hereby expressly waived by each Borrower; provided, however,
that in the event of an actual or deemed entry of an order for relief with
respect to the Company or any other Borrower under any Bankruptcy Law,
(A) the obligation of each Lender to make Advances (other than Advances to
be made by an Issuing Bank or a Lender pursuant to Section 2.03(c)) and of the
Issuing Banks to issue Letters of Credit shall automatically be terminated and
(B) the Advances, all such interest and all such amounts shall
automatically become and be due and payable, without presentment, demand,
protest or any notice of any kind, all of which are hereby expressly waived by
each Borrower.

 

SECTION 6.02.  Actions
in Respect of the Letters of Credit upon Default.  If any Event of Default shall have occurred
and be continuing, the Agent may with the consent, or shall at the request, of
the Required Lenders, irrespective of whether it is taking any of the actions
described in Section 6.01 or otherwise, make demand upon the Borrowers to, and
forthwith upon such demand the Borrowers will, (a) pay to the Agent on behalf
of the Lenders in same day funds at the Agent’s office designated in such
demand, for deposit in the L/C Cash Deposit Account, an amount equal to the
aggregate Available Amount of all Letters of Credit then outstanding or (b)
make such other arrangements in respect of the outstanding Letters of Credit as
shall be acceptable to the Required Lenders and not more disadvantageous to the
Borrowers than clause (a); provided, however, that in the event
of an actual or deemed entry of an order for relief with respect to any
Borrower under the Federal Bankruptcy Code, an amount equal to the aggregate Available Amount of all outstanding
Letters of Credit shall be immediately due and payable to the Agent for the
account of the Lenders without notice to or demand upon the Borrowers, which
are expressly waived by each Borrower, to be held in the L/C Cash Deposit
Account.  If at any time an Event
of Default is continuing the Agent determines that any funds held in the L/C
Cash Deposit Account are subject to any right or claim of any Person other than
the Agent and the Lenders or that the total amount of such funds is less than
the aggregate Available Amount of all Letters of Credit, the Borrowers will,
forthwith upon demand by the Agent, pay

 

45

 

to the Agent, as
additional funds to be deposited and held in the L/C Cash Deposit Account, an
amount equal to the excess of (a) such aggregate Available Amount over (b) the
total amount of funds, if any, then held in the L/C Cash Deposit Account that
the Agent determines to be free and clear of any such right and claim.  Upon the drawing of any Letter of Credit, to
the extent funds are on deposit in the L/C Cash Deposit Account, such funds
shall be applied to reimburse the Issuing Banks to the extent permitted by
applicable law.  After all such Letters
of Credit shall have expired or been fully drawn upon and all other obligations
of the Borrowers hereunder and under the Notes shall have been paid in full,
the balance, if any, in such L/C Cash Deposit Account shall be returned to the
Borrowers.

 

ARTICLE VII

 

GUARANTY

 

SECTION 7.01.  Unconditional
Guaranty.  (a) Each Guarantor,
jointly and severally, hereby absolutely, unconditionally and irrevocably
guarantees the punctual payment when due, whether at scheduled maturity or on
any date of a required prepayment or by acceleration, demand or otherwise, of
all obligations of each other Loan Party now or hereafter existing under or in
respect of the Loan Documents (including, without limitation, any extensions,
modifications, substitutions, amendments or renewals of any or all of the
foregoing obligations), whether direct or indirect, absolute or contingent, and
whether for principal, interest, premiums, fees, indemnities, contract causes
of action, costs, expenses or otherwise (such obligations being the “Guaranteed
Obligations”), and agrees to pay any and all expenses (including, without
limitation, reasonable fees and expenses of counsel) incurred by the Agent or
any Lender in enforcing any rights under this Agreement.  Without limiting the generality of the
foregoing, each Guarantor’s liability shall extend to all amounts that
constitute part of the Guaranteed Obligations and would be owed by any other
Loan Party to the Agent or any Lender under or in respect of the Loan Documents
but for the fact that they are unenforceable or not allowable due to the
existence of a bankruptcy, reorganization or similar proceeding involving other
Loan Party.

 

(b)           Each Guarantor, and by
its acceptance of this Guaranty, the Agent and each Lender, hereby confirms
that it is the intention of all such Persons that this Guaranty and the
obligations of each Subsidiary Guarantor hereunder not constitute a fraudulent
transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal
or state law to the extent applicable to this Guaranty and the obligations of
each Subsidiary Guarantor hereunder.  To
effectuate the foregoing intention, the Agent, the Lenders and the Guarantors
hereby irrevocably agree that the obligations of each Subsidiary Guarantor
under this Guaranty at any time shall be limited to the maximum amount as will
result in the obligations of such Guarantor under this Guaranty not
constituting a fraudulent transfer or conveyance.

 

(c)           Each Guarantor hereby
unconditionally and irrevocably agrees that in the event any payment shall be
required to be made to the Agent or any Lender under this Guaranty or any other
guaranty, such Guarantor will contribute, to the maximum extent permitted by
law, such amounts to each other Guarantor and each other guarantor so as to
maximize the aggregate amount paid to the Agent and the Lenders under or in
respect of the Loan Documents.

 

SECTION 7.02.  Guaranty Absolute.  (a) 
Each Guarantor guarantees that the Guaranteed Obligations will be paid
strictly in accordance with the terms of the Loan Documents, regardless of any
law, regulation or order now or hereafter in effect in any jurisdiction
affecting any of such terms or the rights of the Agent or any Lender with
respect thereto.  The obligations of each
Guarantor under or in respect of this Guaranty are independent of the
Guaranteed Obligations or any other obligations of any other Loan Party under
or in respect of the Loan Documents, and a separate action or actions may be
brought and prosecuted against each Guarantor to enforce this Guaranty,
irrespective of whether any action is brought against any other Loan Party or
whether any other Loan Party is joined in any such action or actions.  The liability of each Guarantor under this
Guaranty shall be irrevocable, absolute and unconditional irrespective of, and
each Guarantor hereby irrevocably waives any defenses it may now have or
hereafter acquire in any way relating to, any or all of the following:

 

(a)           any lack of validity or
enforceability of any Loan Document or any agreement or instrument relating
thereto;

 

46

 

(b)           any change in the time,
manner or place of payment of, or in any other term of, all or any of the
Guaranteed Obligations or any other obligations of any other Loan Party under
or in respect of the Loan Documents, or any other amendment or waiver of or any
consent to departure from any Loan Document, including, without limitation, any
increase in the Guaranteed Obligations resulting from the extension of
additional credit to any Loan Party or any of its Subsidiaries or otherwise;

 

(c)           any taking, exchange,
release or non-perfection of any collateral, or any taking, release or
amendment or waiver of, or consent to departure from, any other guaranty, for
all or any of the Guaranteed Obligations;

 

(d)           any manner of
application of any collateral, or proceeds thereof, to all or any of the
Guaranteed Obligations, or any manner of sale or other disposition of any
collateral for all or any of the Guaranteed Obligations or any other
obligations of any Loan Party under the Loan Documents or any other assets of
any Loan Party or any of its Subsidiaries;

 

(e)           any change,
restructuring or termination of the corporate structure or existence of any
Loan Party or any of its Subsidiaries;

 

(f)            any failure of the
Agent or any Lender to disclose to any Loan Party any information relating to
the business, condition (financial or otherwise), operations, performance,
properties or prospects of any other Loan Party now or hereafter known to the
Agent or such Lender (each Guarantor waiving any duty on the part of the Agent
and the Lenders to disclose such information);

 

(g)           the failure of any
other Person to execute or deliver this Agreement, any Guaranty Supplement or
any other guaranty or agreement or the release or reduction of liability of any
Guarantor or other guarantor or surety with respect to the Guaranteed
Obligations; or

 

(h)           any other circumstance
(including, without limitation, any statute of limitations) or any existence of
or reliance on any representation by the Agent or any Lender that might
otherwise constitute a defense available to, or a discharge of, any Loan Party
or any other guarantor or surety.

 

This Guaranty shall continue to be effective or be
reinstated, as the case may be, if at any time any payment of any of the
Guaranteed Obligations is rescinded or must otherwise be returned by the Agent
or any Lender or any other Person upon the insolvency, bankruptcy or
reorganization of any other Loan Party or otherwise, all as though such payment
had not been made.

 

SECTION 7.03.  Waivers and
Acknowledgments.  (a)  Each Guarantor hereby unconditionally and
irrevocably waives promptness, diligence, notice of acceptance, presentment,
demand for performance, notice of nonperformance, default, acceleration,
protest or dishonor and any other notice with respect to any of the Guaranteed
Obligations and this Guaranty and any requirement that the Agent or any Lender
protect, secure, perfect or insure any Lien or any property subject thereto or
exhaust any right or take any action against any Loan Party or any other Person
or any collateral.

 

(b)           Each Guarantor hereby
unconditionally and irrevocably waives any right to revoke this Guaranty and
acknowledges that this Guaranty is continuing in nature and applies to all
Guaranteed Obligations, whether existing now or in the future.

 

(c)           Each Guarantor hereby
unconditionally and irrevocably waives (i) any defense arising by reason
of any claim or defense based upon an election of remedies by the Agent or any
Lender that in any manner impairs, reduces, releases or otherwise adversely
affects the subrogation, reimbursement, exoneration, contribution or
indemnification rights of such Guarantor or other rights of such Guarantor to
proceed against any of the other Loan Parties, any other guarantor or any other
Person or any collateral and (ii) any defense based on any right of
set-off or counterclaim against or in respect of the obligations of such
Guarantor hereunder.

 

47

 

(d)           Each Guarantor hereby
unconditionally and irrevocably waives any duty on the part of the Agent or any
Lender to disclose to such Guarantor any matter, fact or thing relating to the
business, condition (financial or otherwise), operations, performance,
properties or prospects of any other Loan Party or any of its Subsidiaries now
or hereafter known by the Agent or such Lender.

 

(e)           Each Guarantor
acknowledges that it will receive substantial direct and indirect benefits from
the financing arrangements contemplated by the Loan Documents and that the
waivers set forth in Section 7.02 and this Section 7.03 are knowingly
made in contemplation of such benefits.

 

SECTION 7.04.  Subrogation.  Each Guarantor hereby unconditionally and
irrevocably agrees not to exercise any rights that it may now have or hereafter
acquire against any other Loan Party or any other insider guarantor that arise
from the existence, payment, performance or enforcement of such Guarantor’s
obligations under or in respect of this Guaranty or any other Loan Document,
including, without limitation, any right of subrogation, reimbursement,
exoneration, contribution or indemnification and any right to participate in
any claim or remedy of the Agent or any Lender against any other Loan Party or
any other insider guarantor or any collateral, whether or not such claim,
remedy or right arises in equity or under contract, statute or common law,
including, without limitation, the right to take or receive from any other Loan
Party or any other insider guarantor, directly or indirectly, in cash or other
property or by set-off or in any other manner, payment or security on account
of such claim, remedy or right, unless and until all of the Guaranteed
Obligations and all other amounts payable under this Guaranty shall have been
paid in full in cash, all Letters of Credit shall have expired or been
terminated and the Commitments shall have expired or been terminated.  If any amount shall be paid to any Guarantor
in violation of the immediately preceding sentence at any time prior to the
latest of (a) the payment in full in cash of the Guaranteed Obligations
and all other amounts payable under this Guaranty, (b) the Termination
Date and (c) the latest date of expiration or termination of all Letters
of Credit, such amount shall be received and held in trust for the benefit of
the Agent and the Lenders, shall be segregated from other property and funds of
such Guarantor and shall forthwith be paid or delivered to the Agent in the
same form as so received (with any necessary endorsement or assignment) to be
credited and applied to the Guaranteed Obligations and all other amounts
payable under this Guaranty, whether matured or unmatured, in accordance with the
terms of the Loan Documents, or to be held as collateral for any Guaranteed
Obligations or other amounts payable under this Guaranty thereafter
arising.  If (i) any Guarantor shall
make payment to the Agent or any Lender of all or any part of the Guaranteed
Obligations, (ii) all of the Guaranteed Obligations and all other amounts
payable under this Guaranty shall have been paid in full in cash,
(iii) the Termination Date shall have occurred and (iv) all Letters
of Credit shall have expired or been terminated, the Agent and the Lenders
will, at such Guarantor’s request and expense, execute and deliver to such
Guarantor appropriate documents, without recourse and without representation or
warranty, necessary to evidence the transfer by subrogation to such Guarantor
of an interest in the Guaranteed Obligations resulting from such payment made
by such Guarantor pursuant to this Guaranty.

 

SECTION 7.05.  Subordination.  Each Guarantor hereby subordinates any and
all debts, liabilities and other obligations owed to such Guarantor by each
other Loan Party (the “Subordinated Obligations”) to the Guaranteed
Obligations to the extent and in the manner hereinafter set forth in this
Section 7.05:

 

(a)           Prohibited Payments,
Etc.  Except during the continuance
of an Event of Default under Section 6.01(a) or (e) (including the commencement
and continuation of any proceeding under any Bankruptcy Law relating to such
Loan Party), each Guarantor may receive regularly scheduled payments from such
Loan Party on account of the Subordinated Obligations.  After the occurrence and during the
continuance of any Event of Default under Section 6.01(a) or (e) (including the
commencement and continuation of any proceeding under any Bankruptcy Law relating
to such Loan Party), however, unless the Required Lenders otherwise agree, no
Guarantor shall demand, accept or take any action to collect any payment on
account of the Subordinated Obligations.

 

(b)           Prior Payment of
Guaranteed Obligations.  In any
proceeding under any Bankruptcy Law relating to such Loan Party, each Guarantor
agrees that the Agent and the Lenders shall be entitled to receive payment in
full in cash of all Guaranteed Obligations (including all interest and expenses
accruing after the commencement of a proceeding under any Bankruptcy Law,
whether or not constituting an allowed claim in such proceeding (“Post
Petition Interest”)) before such Guarantor receives payment of any
Subordinated Obligations.

 

48

 

(c)           Turn-Over.  After the occurrence and during the
continuance of any Event of Default under Section 6.01(a) or (e) (including the
commencement and continuation of any proceeding under any Bankruptcy Law
relating to such Loan Party), each Guarantor shall, if the Agent so requests,
collect, enforce and receive payments on account of the Subordinated
Obligations as trustee for the Agent and the Lenders and deliver such payments
to the Agent on account of the Guaranteed Obligations (including all Post
Petition Interest), together with any necessary endorsements or other
instruments of transfer, but without reducing or affecting in any manner the
liability of such Guarantor under the other provisions of this Guaranty.

 

(d)           Agent Authorization.  After the occurrence and during the continuance
of any Event of Default under Section 6.01(a) or (e) (including the
commencement and continuation of any proceeding under any Bankruptcy Law
relating to such Loan Party), the Agent is authorized and empowered (but
without any obligation to so do), in its discretion, (i) in the name of each
Guarantor, to collect and enforce, and to submit claims in respect of,
Subordinated Obligations and to apply any amounts received thereon to the
Guaranteed Obligations (including any and all Post Petition Interest), and (ii)
to require each Guarantor (A) to collect and enforce, and to submit claims in
respect of, Subordinated Obligations and (B) to pay any amounts received on
such obligations to the Agent for application to the Guaranteed Obligations
(including any and all Post Petition Interest).

 

SECTION 7.06.  Guaranty Supplements.  Upon the execution and delivery by any Person
of a guaranty supplement in substantially the form of Exhibit F hereto
(each, a “Guaranty Supplement”), (a) such Person shall be referred
to as an “Additional Guarantor” and shall become and be a Guarantor
hereunder, and each reference in this Guaranty to a “Guarantor” shall also mean
and be a reference to such Additional Guarantor, and each reference in any other Loan Document to a “Subsidiary
Guarantor” shall also mean and be a reference to such Additional Guarantor, and
(b) each reference herein to “this Guaranty,” “hereunder,” “hereof” or
words of like import referring to this Guaranty, and each reference in any
other Loan Document to the “Guaranty,” “thereunder,” “thereof” or words of like
import referring to this Guaranty, shall mean and be a reference to this
Guaranty as supplemented by such Guaranty Supplement.

 

SECTION 7.07.  Continuing
Guaranty; Assignments.  This Guaranty
is a continuing guaranty and shall (a) remain in full force and effect
until the latest of (i) the payment in full in cash of the Guaranteed
Obligations and all other amounts payable under this Guaranty, (ii) the
Termination Date and (iii) the latest date of expiration or termination of
all Letters of Credit, (b) be binding upon each Guarantor, its successors
and assigns and (c) inure to the benefit of and be enforceable by the
Agent and the Lenders and their successors, transferees and assigns.  Without limiting the generality of
clause (c) of the immediately preceding sentence, the Agent or any Lender
may assign or otherwise transfer all or any portion of its rights and
obligations under this Agreement (including, without limitation, all or any
portion of its Commitments, the Advances owing to it and any Note or Notes held
by it) to any other Person, and such other Person shall thereupon become vested
with all the benefits in respect thereof granted to the Agent or such Lender
herein or otherwise, in each case as and to the extent provided in
Section 9.07.  No Guarantor shall
have the right to assign its rights hereunder or any interest herein without
the prior written consent of the Lenders.

 

ARTICLE VIII

 

THE AGENT

 

SECTION 8.01.  Authorization
and Action.  Each Lender (in its
capacities as a Lender and Issuing Bank, as applicable) hereby appoints and
authorizes the Agent to take such action as agent on its behalf and to exercise
such powers and discretion under this Agreement as are delegated to the Agent
by the terms hereof, together with such powers and discretion as are reasonably
incidental thereto.  As to any matters
not expressly provided for by this Agreement (including, without limitation,
enforcement or collection of the Loan Documents), the Agent shall not be
required to exercise any discretion or take any action, but shall be required
to act or to refrain from acting (and shall be fully protected in so acting or
refraining from acting) upon the instructions of the Required Lenders, and such
instructions shall be binding upon all Lenders and all holders of Notes; provided,
however, that the Agent shall not be required to take any action that
exposes the Agent to personal liability or that is contrary to

 

49

 

this Agreement, any other
Loan Document or applicable law.  The
Agent agrees to give to each Lender prompt notice of each notice given to it by
the Company or any other Loan Party pursuant to the terms of this Agreement.

 

SECTION 8.02.  Agent’s
Reliance, Etc.  Neither the Agent nor
any of its directors, officers, agents or employees shall be liable for any
action taken or omitted to be taken by it or them under or in connection with
any Loan Document, except for its or their own gross negligence or willful misconduct.  Without limitation of the generality of the
foregoing, the Agent:  (i) may treat
the Lender that made
any Advance as the holder of the Debt resulting therefrom until the Agent
receives and accepts an Assumption Agreement entered into by an Assuming Lender
as provided in Section 2.18 or an Assignment and Acceptance entered into by
such Lender, as assignor, and an Eligible Assignee, as assignee, as provided in
Section 9.07; (ii) may consult with legal counsel (including counsel
for the Company), independent public accountants and other experts selected by
it and shall not be liable for any action taken or omitted to be taken in good
faith by it in accordance with the advice of such counsel, accountants or
experts; (iii) makes no warranty or representation to any Lender and shall
not be responsible to any Lender for any statements, warranties or
representations (whether written or oral) made in or in connection with any
Loan Document; (iv) shall not have any duty to ascertain or to inquire as to
the performance, observance or satisfaction of any of the terms, covenants or
conditions of any Loan Document on the part of any Loan Party or the existence
at any time of any Default or to inspect the property (including the books and
records) of the Company or any other Loan Party; (v) shall not be
responsible to any Lender for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of, or the perfection or
priority of any lien or security interest created or purported to be created
under or in connection with, any Loan Document or any other instrument or
document furnished pursuant hereto; and (vi) shall incur no liability
under or in respect of any Loan Document by acting upon any notice, consent,
certificate or other instrument or writing (which may be by telecopier or
telegram) believed by it to be genuine and signed or sent by the proper party
or parties.

 

SECTION 8.03.  Citibank
and Affiliates.  With respect to its
Commitments, the Advances made by it and the Note issued to it, Citibank shall
have the same rights and powers under this Agreement as any other Lender and
may exercise the same as though it were not the Agent; and the term “Lender” or
“Lenders” shall, unless otherwise expressly indicated, include Citibank in its
individual capacity.  Citibank and its
Affiliates may accept deposits from, lend money to, act as trustee under
indentures of, accept investment banking engagements from and generally engage
in any kind of business with, the Company, any of its Subsidiaries and any
Person who may do business with or own securities of the Company or any such
Subsidiary, all as if Citibank were not the Agent and without any duty to
account therefor to the Lenders.  The
Agent shall have no duty to disclose any information obtained or received by it
or any of its Affiliates relating to the Company or any of its Subsidiaries to
the extent such information was obtained or received in any capacity other than
as Agent.

 

SECTION 8.04.  Lender
Credit Decision.  Each Lender
acknowledges that it has, independently and without reliance upon the Agent or
any other Lender and based on the financial statements referred to in
Section 4.01 and such other documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement.  Each Lender also acknowledges
that it will, independently and without reliance upon the Agent or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under this Agreement.

 

SECTION 8.05.  Indemnification.  (a) 
Each Lender severally agrees to indemnify the Agent (to the extent not
reimbursed by the Company) from and against such Lender’s Ratable Share of any
and all liabilities, obligations, losses, damages, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever that may be
imposed on, incurred by, or asserted against the Agent in any way relating to
or arising out of the Loan Documents or any action taken or omitted by the
Agent in its capacity as such under the Loan Documents (collectively, the “Indemnified
Costs”), provided that no Lender shall be liable for any portion of
the Indemnified Costs resulting from the Agent’s gross negligence or willful
misconduct.  Without limitation of the
foregoing, each Lender agrees to reimburse the Agent promptly upon demand for
its Ratable Share of any out-of-pocket expenses (including counsel fees)
incurred by the Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, the Loan Documents, to the extent that the
Agent is not reimbursed for such expenses by the Company.  In the case of any investigation, litigation
or

 

50

 

proceeding giving rise to
any Indemnified Costs, this Section 8.05 applies whether any such
investigation, litigation or proceeding is brought by the Agent, any Lender or
a third party.

 

(b)           Each
Lender severally agrees to indemnify the Issuing Banks (to the extent not
promptly reimbursed by the Company) from and against such Lender’s Ratable
Share of any and all liabilities, obligations, losses, damages, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever that may be imposed on, incurred by, or asserted against any such
Issuing Bank in any way relating to or arising out of the Loan Documents or any
action taken or omitted by such Issuing Bank in its capacity as such hereunder
or in connection herewith; provided, however,
that no Lender shall be liable for any portion of such liabilities,
obligations, losses, damages, actions, judgments, suits, costs, expenses or
disbursements resulting from such Issuing Bank’s gross negligence or willful
misconduct.  Without limitation of the
foregoing, each Lender agrees to reimburse any such Issuing Bank promptly upon
demand for its Ratable Share of any costs and expenses (including, without
limitation, fees and expenses of counsel) payable by the Company under Section
9.04, to the extent that such Issuing Bank is not promptly reimbursed for such
costs and expenses by the Company.

 

(c)           The
failure of any Lender to reimburse the Agent or any Issuing Bank promptly upon
demand for its Ratable Share of any amount required to be paid by the Lenders
to the Agent as provided herein shall not relieve any other Lender of its
obligation hereunder to reimburse the Agent or any Issuing Bank for its Ratable
Share of such amount, but no Lender shall be responsible for the failure of any
other Lender to reimburse the Agent or any Issuing Bank for such other Lender’s
Ratable Share of such amount.  Without
prejudice to the survival of any other agreement of any Lender hereunder, the
agreement and obligations of each Lender contained in this Section 8.05 shall
survive the payment in full of principal, interest and all other amounts
payable hereunder and under the Notes. 
Each of the Agent and each Issuing Bank agrees to return to the Lenders
their respective Ratable Shares of any amounts paid under this Section 8.05
that are subsequently reimbursed by the Company.

 

SECTION 8.06.  Successor
Agent.  The Agent may resign at any
time by giving written notice thereof to the Lenders and the Company and may be
removed at any time with or without cause by the Required Lenders.  Upon any such resignation or removal, the
Required Lenders shall have the right to appoint a successor Agent with the
consent of the Company, so long as no Event of Default shall have occurred and
be continuing and which consent shall not be unreasonably withheld or
delayed.  If no successor Agent shall
have been so appointed by the Required Lenders, and shall have accepted such
appointment, within 30 days after the retiring Agent’s giving of notice of
resignation or the Required Lenders’ removal of the retiring Agent, then the
retiring Agent may, on behalf of the Lenders, appoint a successor Agent, which
shall be a commercial bank organized under the laws of the United States of
America or of any State thereof and having a combined capital and surplus of at
least $500,000,000.  Upon the acceptance
of any appointment as Agent hereunder by a successor Agent, such successor
Agent shall thereupon succeed to and become vested with all the rights, powers,
discretion, privileges and duties of the retiring Agent, and the retiring Agent
shall be discharged from its duties and obligations under this Agreement.  After any retiring Agent’s resignation or
removal hereunder as Agent, the provisions of this Article VIII shall
inure to its benefit as to any actions taken or omitted to be taken by it while
it was Agent under this Agreement.

 

SECTION 8.07.  Sub-Agent.  The Sub-Agent has been designated under this
Agreement to carry out duties of the Agent. 
The Sub-Agent shall be subject to each of the obligations in this
Agreement to be performed by the Sub-Agent, and each of the Company, each other
Borrower and the Lenders agrees that the Sub-Agent shall be entitled to
exercise each of the rights and shall be entitled to each of the benefits of
the Agent under this Agreement as relate to the performance of its obligations
hereunder.  References in Section 2.14 to
the Agent shall also include the Sub-Agent.

 

SECTION 8.08.  Other
Agents.  Each Lender hereby
acknowledges that none of the syndication agents, the documentation agents nor
any other Lender designated as any “Agent” on the signature pages hereof has
any liability hereunder other than in its capacity as a Lender.

 

51

 

ARTICLE IX

 

MISCELLANEOUS

 

SECTION 9.01.  Amendments, Etc. 
No amendment or waiver of any provision of this Agreement or the
Notes, nor consent to any departure by any Borrower therefrom, shall in any
event be effective unless the same shall be in writing and signed by the
Required Lenders, and then such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given; provided,
however, that no amendment, waiver or consent shall, unless in writing
and signed by all the Lenders, do any of the following:  (a) waive any of the conditions
specified in Section 3.01, (b) increase the Commitments of the
Lenders other than in accordance with Section 2.18, (c) reduce the
principal of, or interest on, the Advances or any fees or other amounts payable
hereunder, (d) postpone any date fixed for any payment of principal of, or
interest on, the Advances or any fees or other amounts payable hereunder,
(e) change the percentage of the Commitments or of the aggregate unpaid
principal amount of the Advances, or the number of Lenders, that shall be
required for the Lenders or any of them to take any action hereunder, (f)
release one or more Guarantors (or otherwise limit such Guarantors’ liability
with respect to the obligations owing to the Agent and the Lenders under the
Guaranties) if such release or limitation is in respect of all or substantially
all of the value of the Guaranties to the Lenders, (g) during the Security
Period, release all or substantially all of the Collateral in any transaction
or series of related transactions, (h) amend this Section 9.01, or (i)
extend the Termination Date; and provided  further that (x) no
amendment, waiver or consent shall, unless in writing and signed by the Agent
in addition to the Lenders required above to take such action, affect the
rights or duties of the Agent under this Agreement or any Note and (y) no
amendment, waiver or consent shall, unless in writing and signed by the Issuing
Banks in addition to the Lenders required above to take such action, adversely
affect the rights or obligations of the Issuing Banks in their capacities as
such under this Agreement.

 

SECTION 9.02.  Notices, Etc.  (a)  All notices and other communications provided
for hereunder shall be either (x) in writing (including telecopier or
telegraphic communication) and mailed, telecopied, telegraphed or delivered or
(y) as and to the extent set forth in Section 9.02(b) and in the proviso to
this Section 9.02(a), if to the Company or any other Borrower, at the Company’s
address at 199 Benson Road, Middlebury, Connecticut 06749, Attention:  Treasurer, with a copy to General Counsel; if
to any Initial Lender, at its Domestic Lending Office specified opposite its
name on Schedule I hereto; if to any other Lender, at its Domestic Lending
Office specified in the Assumption Agreement or the Assignment and Acceptance
pursuant to which it became a Lender; and if to the Agent, at its address at
Two Penns Way, New Castle, 19720, Attention: Bank Loan Syndications Department;
or, as to the Company or the Agent, at such other address as shall be
designated by such party in a written notice to the other parties and, as to
each other party, at such other address as shall be designated by such party in
a written notice to the Company and the Agent, provided that materials
required to be delivered pursuant to Section 5.01(i)(i), (ii) or (v) shall be
delivered to the Agent as specified in Section 9.02(b) or as otherwise
specified to the Company by the Agent. 
All such notices and communications shall, when mailed, telecopied,
telegraphed or e-mailed, be effective when deposited in the mails, telecopied,
delivered to the telegraph company or confirmed by e-mail, respectively, except
that notices and communications to the Agent pursuant to Article II, III
or VIII shall not be effective until received by the Agent.  Delivery by telecopier of an executed
counterpart of any amendment or waiver of any provision of this Agreement or
the Notes or of any Exhibit hereto to be executed and delivered hereunder shall
be effective as delivery of a manually executed counterpart thereof.

 

(b)           So
long as Citibank or any of its Affiliates is the Agent, materials required to
be delivered pursuant to Section 5.01(i)(i), (ii) and (v) shall be delivered to
the Agent in an electronic medium in a format acceptable to the Agent and the
Lenders by e-mail at oploanswebadmin@citigroup.com.  The Company agrees that the Agent may make
such materials, as well as any other written information, documents,
instruments and other material relating to the Company, any of its Subsidiaries
or any other materials or matters relating to this Agreement, the Notes or any
of the transactions contemplated hereby (collectively, the “Communications”)
available to the Lenders by posting such notices on Intralinks or a
substantially similar electronic system (the “Platform”).  The Company acknowledges that (i) the
distribution of material through an electronic medium is not necessarily secure
and that there are confidentiality and other risks associated with such
distribution, (ii) the Platform is provided “as is” and “as available” and
(iii) neither the Agent nor any of its Affiliates warrants the accuracy,
adequacy or completeness of the Communications or the Platform and each
expressly disclaims liability for errors or omissions in the Communications or
the Platform.  No warranty of any kind,
express, implied or statutory, including, without limitation, any warranty of
merchantability, fitness for a particular purpose, non-infringement of third
party rights or freedom from viruses or other code defects, is made by the
Agent or any of its Affiliates in connection with the Platform.

 

52

 

(c)           Each Lender agrees that notice to it (as provided
in the next sentence) (a “Notice”) specifying that any Communications
have been posted to the Platform shall constitute effective delivery of such
information, documents or other materials to such Lender for purposes of this
Agreement; provided that if requested by any Lender the Agent shall
deliver a copy of the Communications to such Lender by email or
telecopier.  Each Lender agrees (i) to
notify the Agent in writing of such Lender’s e-mail address to which a Notice
may be sent by electronic transmission (including by electronic communication)
on or before the date such Lender becomes a party to this Agreement (and from
time to time thereafter to ensure that the Agent has on record an effective
e-mail address for such Lender) and (ii) that any Notice may be sent to such
e-mail address.

 

SECTION 9.03.  No
Waiver; Remedies. 
No failure on the part of any Lender or the Agent to exercise, and no
delay in exercising, any right hereunder or under any Note or any other Loan
Document shall operate as a waiver thereof; nor shall any single or partial
exercise of any such right preclude any other or further exercise thereof or the
exercise of any other right.  The
remedies herein provided are cumulative and not exclusive of any remedies
provided by law.

 

SECTION 9.04.  Costs
and Expenses. 
(a)  The Company agrees to pay on
demand all reasonable and documented costs and expenses of the Agent in
connection with the preparation, execution, delivery, administration,
modification and amendment of the Loan Documents and the other documents to be
delivered hereunder, including, without limitation, (A) all due diligence,
syndication (including printing, distribution and bank meetings),
transportation, computer, duplication, appraisal, consultant, and audit
expenses and (B) the reasonable fees and expenses of counsel for the Agent
with respect thereto and with respect to advising the Agent as to its rights
and responsibilities under the Loan Documents. 
The Company further agrees to pay on demand all costs and expenses of
the Agent and the Lenders, if any (including, without limitation, reasonable
counsel fees and expenses), in connection with the enforcement (whether through
negotiations, legal proceedings or otherwise) of the Loan Documents, including,
without limitation, reasonable fees and expenses of counsel for the Agent and
each Lender in connection with the enforcement of rights under this
Section 9.04(a).

 

(b)           The
Company agrees to indemnify and hold harmless the Agent and each Lender and
each of their Affiliates and their officers, directors, employees, agents and
advisors (each, an “Indemnified Party”) from and against any and all claims,
damages, losses, liabilities and expenses (including, without limitation,
reasonable fees and expenses of counsel) incurred by or asserted or awarded
against any Indemnified Party, in each case arising out of or in connection
with or by reason of (including, without limitation, in connection with any
investigation, litigation or proceeding or preparation of a defense in
connection therewith) (i) any Loan Document, any of the transactions
contemplated herein or the actual or proposed use of the proceeds of the
Advances or Letters of Credit or (ii) the actual or alleged presence of
Hazardous Materials on any property of the Company or any of its Subsidiaries
or any Environmental Action relating in any way to the Company or any of its
Subsidiaries, except to the extent such claim, damage, loss, liability or
expense is found in a final, non-appealable judgment by a court of competent
jurisdiction to have resulted from such Indemnified Party’s gross negligence or
willful misconduct.  In the case of an
investigation, litigation or other proceeding to which the indemnity in this
Section 9.04(b) applies, such indemnity shall be effective whether or not such
investigation, litigation or proceeding is brought by the Company, its
directors, equityholders or creditors or an Indemnified Party or any other
Person, whether or not any Indemnified Party is otherwise a party thereto and
whether or not the transactions contemplated hereby are consummated.  The Company and the Indemnified Parties agree
not to assert any claim for special, indirect, consequential or punitive
damages against any Indemnified Party or the Company, on any theory of
liability, arising out of or otherwise relating to any Loan Document, any of
the transactions contemplated herein or the actual or proposed use of the
proceeds of the Advances.  The Company
further agrees to pay any civil penalty or fine assessed by OFAC against the
Agent or any Lender and all reasonable costs and expenses (including, without
limitation, reasonable counsel fees and expenses) incurred in connection with
the defense thereof, as a result of conduct by any Borrower that violates a
sanction enforced by OFAC.

 

(c)           If any
payment of principal of, or Conversion of, any Eurocurrency Rate Advance is
made by any Borrower to or for the account of a Lender (i) other than on the
last day of the Interest Period for such Advance, as a result of a payment or
Conversion pursuant to Section 2.08, 2.10 or 2.12, acceleration of the
maturity of the Advances pursuant to Section 6.01 or for any other reason,
or by an Eligible Assignee to a Lender other than on the last day of the
Interest Period for such Advance upon an assignment of rights and obligations
under this Agreement pursuant to Section 9.07 as a result of a demand by
the Company pursuant to Section 9.07(a) or (ii) as a

 

53

 

result of a payment or
Conversion pursuant to Section 2.08, 2.10 or 2.12, such Borrower shall, upon
demand by such Lender (with a copy of such demand to the Agent), pay to the
Agent for the account of such Lender any amounts required to compensate such
Lender for any additional losses, costs or expenses that it may reasonably
incur as a result of such payment or Conversion, including, without limitation,
any loss (excluding loss of anticipated profits), cost or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired
by any Lender to fund or maintain such Advance. 
If the amount of the Committed Currency purchased by any Lender in the
case of a Conversion or exchange of Advances in the case of Section 2.08 or
2.12 exceeds the sum required to satisfy such Lender’s liability in respect of
such Advances, such Lender agrees to remit to the applicable Borrower such
excess.

 

(d)           Without prejudice
to the survival of any other agreement of the Borrowers hereunder, the
agreements and obligations of the Borrowers contained in Sections 2.11,
2.14 and 9.04 shall survive the payment in full of principal, interest and all
other amounts payable hereunder and under the Notes.

 

SECTION 9.05.  Right
of Set-off.  Upon (i) the
occurrence and during the continuance of any Event of Default and (ii) the
making of the request or the granting of the consent specified by
Section 6.01 to authorize the Agent to declare the Advances due and
payable pursuant to the provisions of Section 6.01, each Lender and each
of its Affiliates is hereby authorized at any time and from time to time, to
the fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other indebtedness at any time owing by such Lender or such Affiliate to or for
the credit or the account of the Company or any Loan Party against any and all
of the obligations of the Company or any Loan Party now or hereafter existing
under this Agreement and the Note held by such Lender, whether or not such
Lender shall have made any demand under this Agreement or such Note and
although such obligations may be unmatured. 
Each Lender agrees promptly to notify the Company or the applicable Loan
Party after any such set-off and application, provided that the failure
to give such notice shall not affect the validity of such set-off and
application.  The rights of each Lender
and its Affiliates under this Section are in addition to other rights and
remedies (including, without limitation, other rights of set-off) that such
Lender and its Affiliates may have.

 

SECTION 9.06.  Binding
Effect. 
This Agreement shall become effective (other than Section 2.01,
which shall only become effective upon satisfaction of the conditions precedent
set forth in Section 3.01) when it shall have been executed by the Company
and the other Loan Parties to be party hereto as of the date hereof and the Agent
and when the Agent shall have been notified by each Initial Lender that such
Initial Lender has executed it and thereafter shall be binding upon and inure
to the benefit of the Company, the other Loan Parties, the Agent and each
Lender and their respective successors and assigns, except that neither the
Company nor any other Loan Party shall have the right to assign its rights
hereunder or any interest herein without the prior written consent of the
Lenders.

 

SECTION 9.07.  Assignments
and Participations.  (a)  Each Lender may with the consent of each
Issuing Bank (which consent shall not be unreasonably withheld or delayed) and,
if demanded by the Company (so long as no Default shall have occurred and be
continuing and following (w) the refusal of such Lender to approve any request
for an amendment, waiver or consent, (x) a demand by such Lender pursuant to
Section 2.11 or 2.14, (y) an assertion of illegality by such Lender
pursuant to Section 2.12 or (z) the failure of such Lender to perform its obligations
hereunder) upon at least five Business Days’ notice to such Lender and the
Agent, will assign to one or more Persons all or a portion of its rights and
obligations under this Agreement (including, without limitation, all or a
portion of its Revolving Credit Commitment, its Unissued Letter of Credit
Commitment, the Advances owing to it, its participations in Letters of Credit
and the Note or Notes held by it); provided, however, that
(i) each such assignment shall be of a constant, and not a varying, percentage
of all rights and obligations under this Agreement, (ii) except in the
case of an assignment to a Person that, immediately prior to such assignment,
was a Lender or an assignment of all of a Lender’s rights and obligations under
this Agreement, the amount of (x) the Revolving Credit Commitment of the
assigning Lender being assigned pursuant to each such assignment (determined as
of the date of the Assignment and Acceptance with respect to such assignment)
shall in no event be less than $5,000,000 or an integral multiple of $1,000,000
in excess thereof and (y) the Unissued Letter of Credit Commitment of the
assigning Lender being assigned pursuant to each such assignment (determined as
of the date of the Assignment and Acceptance with respect to such assignment)
shall in no event be less than $5,000,000 or an integral multiple of $1,000,000
in excess thereof, in each case, unless the Company and the Agent otherwise
agree, (iii) each such assignment shall be to an Eligible Assignee, (iv)
each such assignment made as a result of a demand by the

 

54

 

Company pursuant to this
Section 9.07(a) shall be arranged by the Company after consultation with
the Agent and shall be either an assignment of all of the rights and
obligations of the assigning Lender under this Agreement or an assignment of a
portion of such rights and obligations made concurrently with another such
assignment or other such assignments that together cover all of the rights and
obligations of the assigning Lender under this Agreement, (v) no Lender
shall be obligated to make any such assignment as a result of a demand by the
Company pursuant to this Section 9.07(a) unless and until such Lender
shall have received one or more payments from either the Borrowers or one or
more Eligible Assignees in an aggregate amount at least equal to the aggregate
outstanding principal amount of the Advances owing to such Lender, together
with accrued interest thereon to the date of payment of such principal amount
and all other amounts payable to such Lender under this Agreement, and
(vi) the parties to each such assignment shall execute and deliver to the
Agent, for its acceptance and recording in the Register, an Assignment and
Acceptance, together with any Note subject to such assignment and a processing
and recordation fee of $3,500 payable by the parties to each such assignment, provided,
however, that in the case of each assignment made as a result of a
demand by the Company, such recordation fee shall be payable by the Company
except that no such recordation fee shall be payable in the case of an
assignment made at the request of the Company to an Eligible Assignee that is
an existing Lender.  Upon such execution,
delivery, acceptance and recording, from and after the effective date specified
in each Assignment and Acceptance, (x) the assignee thereunder shall be a
party hereto and, to the extent that rights and obligations hereunder have been
assigned to it pursuant to such Assignment and Acceptance, have the rights and
obligations of a Lender hereunder and (y) the Lender assignor thereunder
shall, to the extent that rights and obligations hereunder have been assigned
by it pursuant to such Assignment and Acceptance, relinquish its rights (other
than its rights under Sections 2.11, 2.14 and 9.04 to the extent any claim
thereunder relates to an event arising prior to such assignment) and be
released from its obligations (other than its obligations under Section 8.05 to
the extent any claim thereunder relates to an event arising prior to such
assignment) under this Agreement (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a party
hereto).

 

(b)           By
executing and delivering an Assignment and Acceptance, the Lender assignor
thereunder and the assignee thereunder confirm to and agree with each other and
the other parties hereto as follows: 
(i) other than as provided in such Assignment and Acceptance, such
assigning Lender makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with this Agreement or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of, or the
perfection or priority of any lien or security interest created or purported to
be created under or in connection with, this Agreement or any other instrument
or document furnished pursuant hereto; (ii) such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of the Company or any other Borrower or the performance or
observance by the Company or any other Borrower of any of its obligations under
this Agreement or any other instrument or document furnished pursuant hereto;
(iii) such assignee confirms that it has received a copy of this
Agreement, together with copies of the financial statements referred to in
Section 4.01 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Assignment and Acceptance; (iv) such assignee will, independently and
without reliance upon the Agent, such assigning Lender or any other Lender and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under this Agreement; (v) such assignee confirms that it is an Eligible Assignee;
(vi) such assignee appoints and authorizes the Agent to take such action
as agent on its behalf and to exercise such powers and discretion under this
Agreement as are delegated to the Agent by the terms hereof, together with such
powers and discretion as are reasonably incidental thereto; and (vii) such
assignee agrees that it will perform in accordance with their terms all of the
obligations that by the terms of this Agreement are required to be performed by
it as a Lender.

 

(c)           Upon its
receipt of an Assignment and Acceptance executed by an assigning Lender and an
assignee representing that it is an Eligible Assignee, together with any Note
or Notes subject to such assignment, the Agent shall, if such Assignment and
Acceptance has been completed and is in substantially the form of
Exhibit C hereto, (i) accept such Assignment and Acceptance,
(ii) record the information contained therein in the Register and
(iii) give prompt notice thereof to the Company.

 

(d)           The Agent
shall maintain at its address referred to in Section 9.02 a copy of each
Assumption Agreement and each Assignment and Acceptance delivered to and
accepted by it and a register for the recordation of the names and addresses of
the Lenders and the Commitment of, and principal amount of the

 

55

 

Advances owing to,
each Lender from time to time (the “Register”).  The entries in the Register shall be
conclusive and binding for all purposes, absent manifest error, and the Company
and the other Borrowers, the Agent and the Lenders shall treat each Person
whose name is recorded in the Register as a Lender hereunder for all purposes
of this Agreement.  No Assumption
Agreement or Assignment and Acceptance shall be effective unless and until
entered in the Register.  The Register
shall be available for inspection by the Company or any Lender at any
reasonable time and from time to time upon reasonable prior notice.

 

(e)                                  Each
Lender may sell participations to one or more banks or other entities (other
than the Company or any of its Affiliates) in or to all or a portion of its
rights and obligations under this Agreement (including, without limitation, all
or a portion of its Commitment, the Advances owing to it and any Note or Notes
held by it); provided, however, that (i) such Lender’s
obligations under this Agreement (including, without limitation, its Commitment
to the Borrowers hereunder) shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations, (iii) such Lender shall remain the holder of any such
Note for all purposes of this Agreement, (iv) the Company, the other
Borrowers, the Agent and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement and (v) no participant under any such
participation shall have any right to approve any amendment or waiver of any
provision of this Agreement or any Note, or any consent to any departure by the
Company or any other Borrower therefrom, except to the extent that such
amendment, waiver or consent would reduce the principal of, or interest on, the
Notes or any fees or other amounts payable hereunder, in each case to the
extent subject to such participation, or postpone any date fixed for any
payment of principal of, or interest on, the Notes or any fees or other amounts
payable hereunder, in each case to the extent subject to such participation or
release all or substantially all of the Collateral or the value of the
Guaranties.

 

(f)                                    Any
Lender may, in connection with any assignment or participation or proposed
assignment or participation pursuant to this Section 9.07, disclose to the
assignee or participant or proposed assignee or participant, any information
relating to the Company furnished to such Lender by or on behalf of the
Company; provided that, prior to any such disclosure, the assignee or
participant or proposed assignee or participant shall agree to preserve the
confidentiality of any Company Information relating to the Company received by
it from such Lender.

 

(g)                                 Notwithstanding
any other provision set forth in this Agreement, any Lender may at any time
create a security interest in all or any portion of its rights under this
Agreement (including, without limitation, the Advances owing to it and any Note
or Notes held by it) in favor of any Federal Reserve Bank in accordance with
Regulation A of the Board of Governors of the Federal Reserve System.

 

(h)                                 No
Lender will assign its rights and obligations hereunder, or sell participations,
to any Person who is (i) listed on the Specially Designated Nationals and
Blocked Persons List maintained by OFAC and/or on any other similar list
maintained by the OFAC pursuant to any authorizing statute, executive order or
regulation, or (ii) either (A) included within the term “designated
national” as defined in the Cuban Assets Control Regulations, 31 C.F.R. Part 515,
or (B) designated under Sections 1(a), 1(b), 1(c) or 1(d) of
Executive Order No. 13224, 66 Fed. Reg. 49079 (published September 25,
2001) or similarly designated under any related enabling legislation or any
other similar executive orders.

 

SECTION 9.08.  Confidentiality.  Neither the Agent nor any Lender may disclose
to any Person any confidential, proprietary or non-public information of the
Company furnished to the Agent or the Lenders by the Company (such information
being referred to collectively herein as the “Company Information”), except that each of the Agent and
each of the Lenders may disclose Company Information (i) to its and its
affiliates’ employees, officers, directors, agents and advisors (it being
understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such Company Information and instructed to keep such
Company Information confidential on substantially the same terms as provided
herein), (ii) to the extent requested by any regulatory or self-regulatory
authority, (iii) to the extent required by applicable laws or regulations
or by any subpoena or similar legal process, provided, to the extent
practicable under the circumstances, the Agent or such Lender shall provide the
Company with prompt notice of such requested disclosure so that the Company may
seek a protective order prior to the time when the Agent or such Lender is
required to make such disclosure, (iv) to any other party to this
Agreement, (v) in connection with the exercise of any remedies hereunder
or any suit, action or proceeding relating to this Agreement or the enforcement
of rights hereunder, (vi) subject to an agreement containing provisions

 

56

 

substantially the
same as those of this Section 9.08, to any assignee or participant or
prospective assignee or participant, (vii) to the extent such Company Information
(A) is or becomes generally available to the public on a non-confidential
basis other than as a result of a breach of this Section 9.08 by the Agent
or such Lender, or (B) is or becomes available to the Agent or such Lender
on a nonconfidential basis from a source other than the Company and (viii) with
the consent of the Company.

 

SECTION 9.09.  Designated Subsidiaries.  (a)  Designation.  The Company may at any time, and from time to
time, by delivery to the Agent of a Designation Agreement duly executed by the
Company and the respective Subsidiary and substantially in the form of Exhibit D
hereto, designate such Subsidiary as a “Designated Subsidiary” for purposes of
this Agreement and such Subsidiary shall thereupon become a “Designated
Subsidiary” for purposes of this Agreement and, as such, shall have all of the
rights and obligations of a Borrower hereunder. 
The Agent shall promptly notify each Lender of each such designation by
the Company and the identity of the respective Subsidiary.

 

(b)                                 Termination.  Upon the indefeasible payment and performance
in full of all of the indebtedness, liabilities and obligations under this
Agreement of any Designated Subsidiary then, so long as at the time no Notice
of Borrowing or Notice of Issuance in respect of such Designated Subsidiary is
outstanding, such Subsidiary’s status as a “Designated Subsidiary” shall
terminate upon notice to such effect from the Agent to the Lenders (which
notice the Agent shall give promptly, and only upon its receipt of a request
therefor from the Company).  Thereafter,
the Lenders shall be under no further obligation to make any Advance hereunder
to such Designated Subsidiary.

 

(c)                                  Obligations
of Designated Subsidiaries.  A
Designated Subsidiary shall be obligated solely for its own obligations under
the Loan Documents, and not for the obligations of any Borrower that is a U.S.
entity.

 

SECTION 9.10.  Governing Law.  This Agreement and the Notes shall be
governed by, and construed in accordance with, the laws of the State of New York.

 

SECTION 9.11.  Execution in Counterparts.  This Agreement may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a
signature page to this Agreement by telecopier shall be effective as
delivery of a manually executed counterpart of this Agreement.

 

SECTION 9.12.  Judgment.  (a)  If for the purposes of obtaining
judgment in any court it is necessary to convert a sum due hereunder in Dollars
into another currency, the parties hereto agree, to the fullest extent that
they may effectively do so, that the rate of exchange used shall be that at
which in accordance with normal banking procedures the Agent could purchase
Dollars with such other currency at Citibank’s principal office in London at
11:00 A.M. (London time) on the Business Day preceding that on which final
judgment is given.

 

(b)                                 If
for the purposes of obtaining judgment in any court it is necessary to convert
a sum due hereunder in a Committed Currency into Dollars, the parties agree to
the fullest extent that they may effectively do so, that the rate of exchange
used shall be that at which in accordance with normal banking procedures the
Agent could purchase such Committed Currency with Dollars at Citibank’s
principal office in London at 11:00 A.M. (London time) on the Business Day
preceding that on which final judgment is given.

 

(c)                                  The
obligation of any Borrower in respect of any sum due from it in any currency
(the “Primary Currency”) to any Lender or the Agent hereunder shall,
notwithstanding any judgment in any other currency, be discharged only to the
extent that on the Business Day following receipt by such Lender or the Agent
(as the case may be), of any sum adjudged to be so due in such other currency,
such Lender or the Agent (as the case may be) may in accordance with normal
banking procedures purchase the applicable Primary Currency with such other
currency; if the amount of the applicable Primary Currency so purchased is less
than such sum due to such Lender or the Agent (as the case may be) in the
applicable Primary Currency, each Borrower agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify such Lender or the Agent (as
the case may be) against such loss, and if the amount of the applicable Primary
Currency so purchased exceeds such sum due to any

 

57

 

Lender or the
Agent (as the case may be) in the applicable Primary Currency, such Lender or
the Agent (as the case may be) agrees to remit to such Borrower such excess.

 

SECTION 9.13. 
Jurisdiction, Etc.  (a) 
Each of the parties hereto hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of any New York
State court or federal court of the United States of America sitting in
New York City, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Agreement or the Notes, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in any such New York
State court or, to the extent permitted by law, in such federal court. Each
Designated Subsidiary hereby agrees that service of process in any such action
or proceeding brought in the any such New York State court or in such federal
court may be made upon the Company and each Designated Subsidiary hereby
irrevocably appoints the Company its authorized agent to accept such service of
process, and agrees that the failure of the Company to give any notice of any
such service shall not impair or affect the validity of such service or of any
judgment rendered in any action or proceeding based thereon.  The Company and each Designated Subsidiary
hereby further irrevocably consent to the service of process in any action or
proceeding in such courts by the mailing thereof by any parties hereto by
registered or certified mail, postage prepaid, to the Company at its address
specified pursuant to Section 9.02. 
Each of the parties hereto agrees that a final judgment in any such
action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by
law.  Nothing in this Agreement shall
affect any right that any party may otherwise have to bring any action or
proceeding relating to this Agreement or the Notes in the courts of any
jurisdiction.  To the extent that each
Designated Subsidiary has or hereafter may acquire any immunity from jurisdiction
of any court or from any legal process (whether through service or notice,
attachment prior to judgment, attachment in aid of execution, execution or
otherwise) with respect to itself or its property, each Designated Subsidiary
hereby irrevocably waives such immunity in respect of its obligations under
this Agreement.

 

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

 

SECTION 9.14.  Substitution of Currency. If a change
in any Committed Currency occurs pursuant to any applicable law, rule or
regulation of any governmental, monetary or multi-national authority, this Agreement
(including, without limitation, the definition of Eurocurrency Rate) will be
amended to the extent determined by the Agent (acting reasonably and in
consultation with the Company) to be necessary to reflect the change in
currency and to put the Lenders and the Borrowers in the same position, so far
as possible, that they would have been in if no change in such Committed
Currency had occurred.

 

SECTION 9.15.  No Liability of the Issuing Banks.  The Borrowers assume all risks of the acts or
omissions of any beneficiary or transferee of any Letter of Credit with respect
to its use of such Letter of Credit. 
Neither an Issuing Bank nor any of its officers or directors shall be
liable or responsible for:  (a) the
use that may be made of any Letter of Credit or any acts or omissions of any
beneficiary or transferee in connection therewith; (b) the validity,
sufficiency or genuineness of documents, or of any endorsement thereon, even if
such documents should prove to be in any or all respects invalid, insufficient,
fraudulent or forged; (c) payment by such Issuing Bank against
presentation of documents that do not comply with the terms of a Letter of
Credit, including failure of any documents to bear any reference or adequate
reference to the Letter of Credit; or (d) any other circumstances
whatsoever in making or failing to make payment under any Letter of Credit,
except that the applicable Borrower shall have a claim against such Issuing
Bank, and such Issuing Bank shall be liable to such Borrower, to the extent of
any direct, but not consequential, damages suffered by such Borrower that such
Borrower proves were caused by such Issuing Bank’s willful misconduct or gross
negligence when determining whether drafts and other documents presented under
a Letter of Credit comply with the terms thereof.  In furtherance and not in limitation of the
foregoing, such Issuing Bank may accept documents that appear on their face to
be in order, without responsibility for further investigation, regardless of
any notice or information to the contrary; provided that nothing herein
shall be deemed to excuse such Issuing Bank if it acts with gross negligence or
willful misconduct in accepting such documents.

 

58

 

SECTION 9.16.  Patriot Act Notice.  Each Lender and the Agent (for itself and not
on behalf of any Lender) hereby notifies each Borrower that pursuant to the
requirements of the Patriot Act, it is required to obtain, verify and record
information that identifies each Borrower, which information includes the name
and address of each Borrower and other information that will allow such Lender
or the Agent, as applicable, to identify each Borrower in accordance with the
Patriot Act.  Each Borrower shall provide
such information and take such actions as are reasonably requested by the Agent
or any Lenders in order to assist the Agent and the Lenders in maintaining
compliance with the Patriot Act.

 

SECTION 9.17.  Power of Attorney.  Each Subsidiary of the Company may from time
to time authorize and appoint the Company as its attorney-in-fact to execute
and deliver (a) any amendment, waiver or consent in accordance with Section 9.01
on behalf of and in the name of such Subsidiary and (b) any notice or
other communication hereunder, on behalf of and in the name of such
Subsidiary.  Such authorization shall
become effective as of the date on which such Subsidiary delivers to the Agent
a power of attorney enforceable under applicable law and any additional
information to the Agent as necessary to make such power of attorney the legal,
valid and binding obligation of such Subsidiary.

 

59

 

SECTION 9.18.  Waiver of Jury Trial.  Each of the Company, each of the other Loan
Parties party hereto, the Agent and the Lenders hereby irrevocably waives all
right to trial by jury in any action, proceeding or counterclaim (whether based
on contract, tort or otherwise) arising out of or relating to this Agreement or
the Notes or the actions of the Agent or any Lender in the negotiation,
administration, performance or enforcement thereof.

 

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

 

 

	
   

  	
  CHEMTURA
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  CITIBANK, N.A.,

  as Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA,
  N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  ABN AMRO BANK
  N.V.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  CREDIT SUISSE,
  CAYMAN ISLANDS BRANCH

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  MORGAN STANLEY
  BANK

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  THE ROYAL BANK
  OF SCOTLAND PLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

60

 

	
   

  	
  WACHOVIA BANK,
  NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  CALYON NEW YORK
  BRANCH

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK AG
  NEW YORK BRANCH

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  ING CAPITAL LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  SUMITOMO MITSUI
  BANKING CORP.,

  
	
   

  	
  NEW YORK

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  BANCA INTESA
  S.P.A. NEW YORK BRANCH

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANCA NAZIONALE DEL LAVOR SPA,

  
	
   

  	
  NEW YORK BRANCH

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF
  TOKYO-MITSUBISHI TRUST

  COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

61

 

	
   

  	
  COMMERZBANK AG,
  NEW YORK AND

  GRAND CAYMAN BRANCHES

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

62

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