Document:

EXHIBIT 10.2 AMENDED ICP

Exhibit 10.2
EZCORP, INC.
INCENTIVE COMPENSATION PLAN
EZCORP, Inc., a Delaware corporation (the "Company"), adopts this Incentive Compensation Plan (the "Plan") to provide additional financial incentives for executives and selected key employees to promote the success of the Company and to enhance the Company’s ability to attract and retain highly qualified executives and other key employees.  Under the Plan, each Plan Participant (as defined below) shall have the opportunity to earn an annual bonus (an “Incentive Bonus”) based on Company, business unit or individual performance or a combination thereof.
Compensation payable under the Plan to Executive Officers is intended to constitute "qualified performance-based compensation" for purposes of Section 162(m) of the Internal Revenue Code of 1986, as amended, and Section 1.162-27 of the Treasury Regulations promulgated thereunder, and the Plan shall be construed consistently with such intention.
Administration of the Plan
The Plan shall be administered by the Compensation Committee of the Company’s Board of Directors (the “Committee”), which shall have full power and authority to construe, interpret and administer the Plan and shall have the exclusive right to establish, adjust, pay or decline to pay the Incentive Bonus for each Plan participant (subject to the limitations and restrictions stated in the Plan).  Such power and authority shall include the right to exercise discretion to increase or reduce by any amount the Incentive Bonus otherwise payable to any Plan Participant; provided, however, that (a) the Committee shall not have any discretion to increase the Incentive Bonus otherwise payable to an Executive Officer, and (b) the exercise of discretion with respect to any Plan Participant shall not have the effect of increasing the Incentive Bonus that is otherwise payable to any Executive Officer.  All Committee actions under the Plan shall be taken in accordance with the applicable provisions of the Company’s By-laws and the Committee’s Charter.
The Committee may delegate any or all of its authority and responsibilities with respect to the Plan and Incentive Bonuses, on such terms and conditions as it considers appropriate, to the Chief Executive Officer of the Company; provided, however, that all determinations and decisions regarding Incentive Bonuses to the Executive Officers may not be delegated and shall be made by the Committee.  All references to “Committee” herein shall include those persons to whom the Committee has properly delegated authority and responsibility.
Participants
The following persons shall be participants in the Plan (“Plan Participants”):
		
	•
	The persons who, from time to time, are designated by the Board of Directors as Executive Officers.

		
	•
	Those other employees of the Company or any of its subsidiaries who are designated for participation in the Plan with respect to any fiscal year, taking into consideration (a) whether incentive-based compensation components are typically available for comparable positions at competitor companies and (b) each employee’s potential to make meaningful and substantial contributions to the achievement of the Company’s strategic, financial and other performance goals.

A person’s selection as a Plan Participant for any fiscal year will be evidenced by a personalized Award Statement delivered to them.  After a person has been designated as a Plan Participant, he or she may be removed from the Plan at any time and for any reason.

1

Awards
Not later than the 90th day of each fiscal year, the Committee, in its sole and absolute discretion, shall designate the Plan Participants for such fiscal year and shall specify the terms and conditions for the determination and payment of an Incentive Bonus to each Plan Participant for such fiscal year.  After the end of such 90-day period, the Committee may designate additional Plan Participants so long as, within 30 days following each such additional designation, the Committee specifies the terms and conditions for the determination and payment of an Incentive Bonus to such additional Plan Participant.
The Committee may condition the payment of an Incentive Bonus upon the satisfaction of such objective or subjective standards as the Committee shall determine to be appropriate, in its sole and absolute discretion, and shall retain the discretion to increase or reduce the amount of any Incentive Bonus that would otherwise be payable to a Plan Participant; provided, however, that the Committee shall have no discretion to increase the amount of any Incentive Bonus that would otherwise be payable to an Executive Officer.
Each Incentive Bonus awarded to an Executive Officer shall be conditioned on the achievement of one or more of the following “Performance Measures,” calculated on a consolidated basis or a business unit basis, as specified by the Committee:
		
	•
	Total stockholder return (stock price appreciation plus dividends);

		
	•
	Net income;

		
	•
	Earnings per share;

		
	•
	Return on sales;

		
	•
	Return on equity;

		
	•
	Return on assets;

		
	•
	Return on invested capital;

		
	•
	Increase in the market price of stock or other securities;

		
	•
	Revenues;

		
	•
	Net revenues;

		
	•
	Operating income;

		
	•
	Cash flow;

		
	•
	EBITDA (earnings before interest, taxes, depreciation, amortization, and gain/loss on sale/disposal of assets);

		
	•
	The performance of the Company in any of the above items in comparison to the average performance of the companies used in a self-constructed peer group established before the beginning of the period for measuring performance; or

		
	•
	Any other performance objective approved by the stockholders of the Company in accordance with Section 162(m) of the Internal Revenue Code.

The Committee may exclude the impact of any of the following events or occurrences which the Committee determines should appropriately be excluded:  (a) asset write-downs; (b) litigation, claims, judgments or settlements; (c) the effect of changes in tax law or other such laws or regulations affecting reported results; (d) accruals for reorganization and restructuring programs; (e) any extraordinary, unusual or nonrecurring items as described in the Accounting Standards Codification Topic 225, as the same may be amended or superseded from time to time; (f) any change in accounting principles as defined in the Accounting Standards Codification Topic 250, as the same may be amended or superseded from time to time; (g) any loss from a discontinued operation as described in the Accounting Standards Codification Topic 360, as the same may be amended or superseded from time to time; (h) goodwill impairment charges; (i) operating results for any business acquired during the calendar year; (j) third party expenses associated with any acquisition by EZCORP, or any subsidiary; (k) war, acts of terrorism, political upheaval or natural disasters; or (l) provided such items are identified with reasonable particularity at the time terms and conditions for the determination and payment of an Incentive Bonus are established, any other extraordinary events or occurrences identified by the Committee.  With the 

2

exception of clause (l), such adjustments may be made at any time during the applicable fiscal year or immediately following the applicable fiscal year (but prior to payment of an Incentive Bonus).
As soon as reasonably practicable after the end of each fiscal year, the Committee shall determine whether the stated performance goal for each Incentive Bonus has been achieved and the amount of the Incentive Bonus to be paid to each Plan Participant for such fiscal year; provided, however, that the Incentive Bonus awarded to any Executive Officer may not exceed 300% of that Executive Officer’s base salary during the fiscal year for which the Incentive Bonus is awarded.
Subject to any available election duly and validly made by a Plan Participant with respect to the deferral of all or a portion of his or her Incentive Bonus, Incentive Bonuses shall be paid in cash at such times (after the determinations described above) and on such terms as are determined by the Committee in its sole and absolute discretion.
The Company shall have the right to withhold, or require a Plan Participant to remit to the Company, an amount sufficient to satisfy any applicable federal, state, local or foreign withholding tax requirements imposed with respect to the payment of any Incentive Bonus.
Adoption, Amendment, Suspension and Termination of the Plan
Subject to the approval of the Plan by the holder of the Company’s Class B Voting Common Stock, the Plan shall be effective for the fiscal year of the Company commencing October 1, 2010 and shall continue in effect until September 30, 2015, unless earlier terminated as provided below.  Notwithstanding the termination of the Plan on September 30, 2015, the Plan shall continue in effect solely for the purpose of determining and paying out Incentive Bonuses for the fiscal year ended September 30, 2015.
The Board of Directors may at any time suspend or terminate the Plan and may amend it from time to time in such respects as the Board may deem advisable; provided, however, that the Board shall not amend the Plan in any of the following respects without the approval of the holder of the Company’s Class B Voting Common Stock:
		
	•
	To increase the maximum amount of Incentive Bonus that may be paid to an Executive Officer under the Plan;

		
	•
	To materially modify the requirements as to eligibility for participation in the Plan; or

		
	•
	To materially modify the definition of Performance Measures.

No Incentive Bonus may be awarded during any suspension or after termination of the Plan, and no amendment, suspension or termination of the Plan shall, without the consent of the person affected thereby, alter or impair any rights or obligations under any Incentive Bonus previously awarded under the Plan.
Miscellaneous
No Right to Bonus or Continued Employment — Neither the establishment of the Plan, the provision for or payment of any amounts under the Plan nor any action of the Company, the Board of Directors or the Committee with respect to the Plan shall be held or construed to confer upon any person (a) any legal right to receive, or any interest in, an Incentive Bonus or any other benefit under the Plan or (b) any legal right to continue to serve as an officer or employee of the Company or any subsidiary of the Company.  The Company expressly reserves any and all rights to discharge any Plan Participant without incurring liability to any person under the Plan or otherwise.  Notwithstanding any other provision of the Plan and notwithstanding the fact that any stated performance goal has been achieved or the individual Incentive Bonus amounts have been determined, the Company shall have no obligation to pay any Incentive Bonus under the Plan unless the Committee otherwise expressly provides by written contract or other written commitment.
Nontransferability — Except as expressly provided by the Committee, the rights and benefits under the Plan are personal to a Plan Participant and shall not be subject to any voluntary or involuntary alienation, assignment, pledge, transfer or other disposition.

3

Unfunded Plan — The Company shall have no obligation to reserve or otherwise fund in advance any amounts that are or may in the future become payable under the Plan.  Any funds that the Company, acting in its sole and absolute discretion, determines to reserve for future payments under the Plan may be commingled with other funds of the Company and need not in any way be segregated from other assets or funds held by the Company.  A Plan Participant’s rights to payment under the Plan shall be limited to those of a general creditor of the Company.
Governing Law — The validity, interpretation and effect of the Plan, and the rights of all persons hereunder, shall be governed by and determined in accordance with the laws of the State of Delaware, other than the choice of law rules thereof.

4Exhibit 10.1 

CREDIT AGREEMENT

dated as of

September 28, 2012

among

MTS SYSTEMS CORPORATION

The Foreign Subsidiary Borrowers From Time to
Time Party Hereto

The Lenders Party Hereto

U.S. BANK NATIONAL ASSOCIATION and HSBC BANK
USA, NATIONAL ASSOCIATION 

as Co-Documentation Agents

WELLS FARGO BANK, NATIONAL ASSOCIATION 

as Syndication Agent

and 

JPMORGAN CHASE BANK, N.A. 

as Administrative Agent

_____________________________

J.P. MORGAN SECURITIES LLC 

as Sole Bookrunner and Sole Lead Arranger

TABLE OF CONTENTS

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 Page

 
	
 ARTICLE I
 Definitions

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION

 	
  

 	
 1.01.

 	
  

 	
 Defined
 Terms

 	
 1

 
	
 SECTION

 	
  

 	
 1.02.

 	
  

 	
 Classification
 of Loans and Borrowings

 	
 20

 
	
 SECTION

 	
  

 	
 1.03.

 	
  

 	
 Terms
 Generally

 	
 20

 
	
 SECTION

 	
  

 	
 1.04.

 	
  

 	
 Accounting
 Terms; GAAP

 	
 21

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE II
 The Credits

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION

 	
  

 	
 2.01.

 	
  

 	
 Commitments

 	
 21

 
	
 SECTION

 	
  

 	
 2.02.

 	
  

 	
 Loans and
 Borrowings

 	
 21

 
	
 SECTION

 	
  

 	
 2.03.

 	
  

 	
 Requests for
 Revolving Borrowings

 	
 22

 
	
 SECTION

 	
  

 	
 2.04.

 	
  

 	
 Determination
 of Dollar Amounts

 	
 23

 
	
 SECTION

 	
  

 	
 2.05.

 	
  

 	
 Swingline
 Loans

 	
 23

 
	
 SECTION

 	
  

 	
 2.06.

 	
  

 	
 Letters of
 Credit

 	
 24

 
	
 SECTION

 	
  

 	
 2.07.

 	
  

 	
 Funding of
 Borrowings

 	
 29

 
	
 SECTION

 	
  

 	
 2.08.

 	
  

 	
 Interest
 Elections

 	
 30

 
	
 SECTION

 	
  

 	
 2.09.

 	
  

 	
 Termination
 and Reduction of Commitments

 	
 31

 
	
 SECTION

 	
  

 	
 2.10.

 	
  

 	
 Repayment of
 Loans; Evidence of Debt

 	
 31

 
	
 SECTION

 	
  

 	
 2.11.

 	
  

 	
 Prepayment
 of Loans

 	
 32

 
	
 SECTION

 	
  

 	
 2.12.

 	
  

 	
 Fees

 	
 33

 
	
 SECTION

 	
  

 	
 2.13.

 	
  

 	
 Interest

 	
 34

 
	
 SECTION

 	
  

 	
 2.14.

 	
  

 	
 Alternate
 Rate of Interest

 	
 34

 
	
 SECTION

 	
  

 	
 2.15.

 	
  

 	
 Increased
 Costs

 	
 35

 
	
 SECTION

 	
  

 	
 2.16.

 	
  

 	
 Break
 Funding Payments

 	
 36

 
	
 SECTION

 	
  

 	
 2.17.

 	
  

 	
 Taxes

 	
 37

 
	
 SECTION

 	
  

 	
 2.18.

 	
  

 	
 Payments
 Generally; Pro Rata Treatment; Sharing of Set-offs

 	
 40

 
	
 SECTION

 	
  

 	
 2.19.

 	
  

 	
 Mitigation
 Obligations; Replacement of Lenders

 	
 41

 
	
 SECTION

 	
  

 	
 2.20.

 	
  

 	
 Expansion
 Option

 	
 42

 
	
 SECTION

 	
  

 	
 2.21.

 	
  

 	
 Market
 Disruption

 	
 43

 
	
 SECTION

 	
  

 	
 2.22.

 	
  

 	
 Judgment
 Currency

 	
 44

 
	
 SECTION

 	
  

 	
 2.23.

 	
  

 	
 Designation
 of Foreign Subsidiary Borrowers

 	
 44

 
	
 SECTION

 	
  

 	
 2.24.

 	
  

 	
 Senior Debt

 	
 45

 
	
 SECTION

 	
  

 	
 2.25.

 	
  

 	
 Defaulting
 Lenders

 	
 45

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE III
 Representations and Warranties

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION

 	
  

 	
 3.01.

 	
  

 	
 Organization; Powers; Subsidiaries

 	
 46

 
	
 SECTION

 	
  

 	
 3.02.

 	
  

 	
 Authorization;
 Enforceability

 	
 47

 
	
 SECTION

 	
  

 	
 3.03.

 	
  

 	
 Governmental
 Approvals; No Conflicts

 	
 47

 
	
 SECTION

 	
  

 	
 3.04.

 	
  

 	
 Financial
 Condition; No Material Adverse Change

 	
 47

 
	
 SECTION

 	
  

 	
 3.05.

 	
  

 	
 Properties

 	
 47

 
	
 SECTION

 	
  

 	
 3.06.

 	
  

 	
 Litigation
 and Environmental Matters

 	
 47

 
	
 SECTION

 	
  

 	
 3.07.

 	
  

 	
 Compliance
 with Laws and Agreements

 	
 48

 
	
 SECTION

 	
  

 	
 3.08.

 	
  

 	
 Investment
 Company Status

 	
 48

 
	
 SECTION

 	
  

 	
 3.09.

 	
  

 	
 Taxes

 	
 48

 
	
 SECTION

 	
  

 	
 3.10.

 	
  

 	
 ERISA

 	
 48

 
	
 SECTION

 	
  

 	
 3.11.

 	
  

 	
 Disclosure

 	
 48

 

TABLE OF CONTENTS
(continued)

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION

 	
  

 	
 3.12.

 	
  

 	
 Federal
 Reserve Regulations

 	
 48

 
	
 SECTION

 	
  

 	
 3.13.

 	
  

 	
 Liens

 	
 49

 
	
 SECTION

 	
  

 	
 3.14.

 	
  

 	
 No Default

 	
 49

 
	
 SECTION

 	
  

 	
 3.15.

 	
  

 	
 No
 Burdensome Restrictions

 	
 49

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IV
 Conditions

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION

 	
  

 	
 4.01.

 	
  

 	
 Effective
 Date

 	
 49

 
	
 SECTION

 	
  

 	
 4.02.

 	
  

 	
 Each Credit
 Event

 	
 50

 
	
 SECTION

 	
  

 	
 4.03.

 	
  

 	
 Designation
 of a Foreign Subsidiary Borrower

 	
 50

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE V
 Affirmative Covenants

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION

 	
  

 	
 5.01.

 	
  

 	
 Financial
 Statements and Other Information

 	
 51

 
	
 SECTION

 	
  

 	
 5.02.

 	
  

 	
 Notices of
 Material Events

 	
 52

 
	
 SECTION

 	
  

 	
 5.03.

 	
  

 	
 Existence;
 Conduct of Business

 	
 52

 
	
 SECTION

 	
  

 	
 5.04.

 	
  

 	
 Payment of
 Obligations

 	
 52

 
	
 SECTION

 	
  

 	
 5.05.

 	
  

 	
 Maintenance
 of Properties; Insurance

 	
 53

 
	
 SECTION

 	
  

 	
 5.06.

 	
  

 	
 Books and
 Records; Inspection Rights

 	
 53

 
	
 SECTION

 	
  

 	
 5.07.

 	
  

 	
 Compliance
 with Laws and Material Contractual Obligations

 	
 53

 
	
 SECTION

 	
  

 	
 5.08.

 	
  

 	
 Use of
 Proceeds

 	
 53

 
	
 SECTION

 	
  

 	
 5.09.

 	
  

 	
 Subsidiary
 Guaranty

 	
 53

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VI
 Negative Covenants

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION

 	
  

 	
 6.01.

 	
  

 	
 Indebtedness

 	
 54

 
	
 SECTION

 	
  

 	
 6.02.

 	
  

 	
 Liens

 	
 55

 
	
 SECTION

 	
  

 	
 6.03.

 	
  

 	
 Fundamental
 Changes and Asset Sales

 	
 55

 
	
 SECTION

 	
  

 	
 6.04.

 	
  

 	
 Investments,
 Loans, Advances, Guarantees and Acquisitions

 	
 56

 
	
 SECTION

 	
  

 	
 6.05.

 	
  

 	
 Swap
 Agreements

 	
 57

 
	
 SECTION

 	
  

 	
 6.06.

 	
  

 	
 Transactions
 with Affiliates

 	
 57

 
	
 SECTION

 	
  

 	
 6.07.

 	
  

 	
 Restricted
 Payments

 	
 57

 
	
 SECTION

 	
  

 	
 6.08.

 	
  

 	
 Restrictive
 Agreements

 	
 57

 
	
 SECTION

 	
  

 	
 6.09.

 	
  

 	
 Subordinated
 Indebtedness and Amendments to Subordinated Indebtedness Documents

 	
 58

 
	
 SECTION

 	
  

 	
 6.10.

 	
  

 	
 Sale and
 Leaseback Transactions

 	
 58

 
	
 SECTION

 	
  

 	
 6.11.

 	
  

 	
 Financial
 Covenants

 	
 58

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VII
 Events of Default

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VIII
 The Administrative Agent

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IX
 Miscellaneous

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION

 	
  

 	
 9.01.

 	
  

 	
 Notices

 	
 63

 
	
 SECTION

 	
  

 	
 9.02.

 	
  

 	
 Waivers;
 Amendments

 	
 64

 
	
 SECTION

 	
  

 	
 9.03.

 	
  

 	
 Expenses;
 Indemnity; Damage Waiver

 	
 65

 
	
 SECTION

 	
  

 	
 9.04.

 	
  

 	
 Successors
 and Assigns

 	
 66

 
	
 SECTION

 	
  

 	
 9.05.

 	
  

 	
 Survival

 	
 69

 

ii

TABLE OF CONTENTS 

(continued)

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION

 	
  

 	
 9.06.

 	
  

 	
 Counterparts;
 Integration; Effectiveness

 	
 70

 
	
 SECTION

 	
  

 	
 9.07.

 	
  

 	
 Severability

 	
 70

 
	
 SECTION

 	
  

 	
 9.08.

 	
  

 	
 Right of
 Setoff

 	
 70

 
	
 SECTION

 	
  

 	
 9.09.

 	
  

 	
 Governing
 Law; Jurisdiction; Consent to Service of Process

 	
 70

 
	
 SECTION

 	
  

 	
 9.10.

 	
  

 	
 WAIVER OF
 JURY TRIAL

 	
 71

 
	
 SECTION

 	
  

 	
 9.11.

 	
  

 	
 Headings

 	
 71

 
	
 SECTION

 	
  

 	
 9.12.

 	
  

 	
 Confidentiality

 	
 72

 
	
 SECTION

 	
  

 	
 9.13.

 	
  

 	
 USA PATRIOT
 Act

 	
 72

 
	
 SECTION

 	
  

 	
 9.14.

 	
  

 	
 Releases of
 Subsidiary Guarantors

 	
 72

 
	
 SECTION

 	
  

 	
 9.15.

 	
  

 	
 Interest
 Rate Limitation

 	
 73

 
	
 SECTION

 	
  

 	
 9.16.

 	
  

 	
 No Advisory
 or Fiduciary Responsibility

 	
 73

 

	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE X Cross-Guarantee

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 SCHEDULES: 

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 Schedule 2.01

 	
  

 	
 – Commitments

 	
  

 
	
 Schedule 2.02

 	
  

 	
 – Mandatory Cost

 	
  

 
	
 Schedule 2.06

 	
  

 	
 – Existing Letters of Credit

 	
  

 
	
 Schedule 3.01

 	
  

 	
 – Subsidiaries

 	
  

 
	
 Schedule 6.01

 	
  

 	
 – Existing Indebtedness

 	
  

 
	
 Schedule 6.02

 	
  

 	
 – Existing Liens

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 EXHIBITS: 

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 Exhibit A

 	
  

 	
 – Form of Assignment and Assumption

 	
  

 
	
 Exhibit B

 	
  

 	
 – [Intentionally Omitted]

 	
  

 
	
 Exhibit C

 	
  

 	
 – Form of Increasing Lender Supplement

 	
  

 
	
 Exhibit D

 	
  

 	
 – Form of Augmenting Lender Supplement

 	
  

 
	
 Exhibit E

 	
  

 	
 – List of Closing Documents

 	
  

 
	
 Exhibit F-1

 	
  

 	
 – Form of Borrowing Subsidiary Agreement

 	
  

 
	
 Exhibit F-2

 	
  

 	
 – Form of Borrowing Subsidiary Termination

 	
  

 
	
 Exhibit G

 	
  

 	
 – Form of Subsidiary Guaranty

 	
  

 
	
 Exhibit H

 	
  

 	
 – Form of Compliance Certificate

 	
  

 
	
 Exhibit I-1

 	
  

 	
 – Form of U.S. Tax Certificate (Foreign Lenders That Are Not
 Partnerships)

 	
  

 
	
 Exhibit I-2

 	
  

 	
 – Form of U.S. Tax Certificate (Foreign Participants That Are Not
 Partnerships)

 	
  

 
	
 Exhibit I-3

 	
  

 	
 – Form of U.S. Tax Certificate (Foreign Participants That Are
 Partnerships)

 	
  

 
	
 Exhibit I-4

 	
  

 	
 – Form of U.S. Tax Certificate (Foreign Lenders That Are
 Partnerships)

 	
  

 
	
 Exhibit J-1

 	
  

 	
 – Form of Borrowing Request

 	
  

 
	
 Exhibit J-2

 	
  

 	
 – Form of Interest Election Request

 	
  

 
	
 Exhibit K

 	
  

 	
 – Form of Note

 	
  

 

iii

          CREDIT
AGREEMENT (this “Agreement”) dated as of September 28, 2012 among MTS SYSTEMS
CORPORATION, the FOREIGN SUBSIDIARY BORROWERS from time to time party hereto,
the LENDERS from time to time party hereto, WELLS FARGO BANK, NATIONAL
ASSOCIATION, as Syndication Agent and U.S. BANK NATIONAL ASSOCIATION and HSBC
BANK USA, NATIONAL ASSOCIATION, as Co-Documentation Agents and JPMORGAN CHASE
BANK, N.A., as Administrative Agent.  

          The parties
hereto agree as follows: 

ARTICLE I

Definitions

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

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

          “Adjusted
LIBO Rate” means, with respect to any Eurocurrency Borrowing for any
Interest Period, an interest rate per annum (rounded upwards, if necessary, to
the next 1/100 of 1%) equal to the sum of (i) (a) the LIBO Rate for such
Interest Period multiplied by (b) the Statutory Reserve Rate plus, without
duplication, (ii) in the case of Loans by a Lender from its office or branch in
the United Kingdom or any Participating Member State, the Mandatory Cost. 

          “Administrative
Agent” means JPMorgan Chase Bank, N.A. (including its successors, branches
and affiliates), in its capacity as administrative agent for the Lenders
hereunder. 

          “Administrative
Questionnaire” means an Administrative Questionnaire in a form supplied by
the Administrative Agent. 

          “Affected
Foreign Subsidiary” means any Foreign Subsidiary to the extent such Foreign
Subsidiary acting as a Subsidiary Guarantor would cause a Deemed Dividend. 

          “Affiliate”
means, with respect to a specified Person, another Person that directly, or
indirectly through one or more intermediaries, Controls or is Controlled by or
is under common Control with the Person specified. 

          “Aggregate
Commitment” means the aggregate of the Commitments of all of the Lenders,
as reduced or increased from time to time pursuant to the terms and conditions
hereof. As of the Effective Date, the Aggregate Commitment is $100,000,000. 

          “Agreed
Currencies” means (i) Dollars, (ii) euro, (iii) Japanese Yen, (iv) Pounds
Sterling, (v) Canadian Dollars, (vi) Swiss Francs and (vii) any other currency
that is (x) a lawful currency (other than Dollars) that is readily available
and freely transferable and convertible into Dollars, (y) available in the
London interbank deposit market and (z) agreed to by the Administrative Agent
and each of the Lenders. 

          “Alternate
Base Rate” means, for any day, a rate per annum equal to the greatest of
(a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate
in effect on such day plus 1⁄2 of 1% and (c) the Adjusted LIBO Rate for a one
month Interest Period on such day (or if such day is not a 

Business Day, the immediately preceding Business Day) plus 1%, provided
that, for the avoidance of doubt, the Adjusted LIBO Rate for any day shall be
based on the rate appearing on Reuters Screen LIBOR01 Page (or on any successor
or substitute page of such service) at approximately 11:00 a.m. London time on
such day. Any change in the Alternate Base Rate due to a change in the Prime
Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate shall be
effective from and including the effective date of such change in the Prime
Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate, respectively. 

          “Applicable
Percentage” means, with respect to any Lender, the percentage of the
Aggregate Commitment represented by such Lender’s Commitment; provided that, in
the case of Section 2.25 when a Defaulting Lender shall exist, “Applicable
Percentage” shall mean the percentage of the Aggregate Commitment (disregarding
any Defaulting Lender’s Commitment) represented by such Lender’s Commitment. If
the Commitments have terminated or expired, the Applicable Percentages shall be
determined based upon the Commitments most recently in effect, giving effect to
any assignments and to any Lender’s status as a Defaulting Lender at the time
of determination.  

          “Applicable
Rate” means, for any day, with respect to any Eurocurrency Loan or any ABR
Loan, or with respect to the commitment fees and commission on outstanding
performance and commercial payable hereunder, as the case may be, the
applicable rate per annum set forth below under the caption “Commitment Fee
Rate”, “Eurocurrency Spread”, “ABR Spread” or “Performance and Commercial L/C
Rate”, as the case may be, based upon the Leverage Ratio applicable on such
date: 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Leverage Ratio:

 	
  

 	
  

 	
 Commitment
Fee Rate

 	
  

 	
  

 	
 Eurocurrency

 Spread

 	
  

 	
  

 	
 ABR Spread

 	
  

 	
  

 	
 Performance
and
 Commercial
L/C Rate

 
	
  Category
 1:

 	
  

 	
  

 	
 < 1.00 to 1.00

 	
  

 	
  

 	
 0.15%

 	
  

 	
  

 	
 0.875%

 	
  

 	
  

 	
 0%

 	
  

 	
  

 	
 0.4375%

 
	
  Category
 2:

 	
  

 	
  

 	
 > 1.00 to 1.00 but

< 1.50 to 1.00 

 	
  

 	
  

 	
 0.175%

 	
  

 	
  

 	
 1.00%

 	
  

 	
  

 	
 0%

 	
  

 	
  

 	
 0.50%

 
	
  Category
 3:

 	
  

 	
  

 	
 > 1.50 to 1.00 but 

< 2.00 to 1.00 

 	
  

 	
  

 	
 0.20%

 	
  

 	
  

 	
 1.25%

 	
  

 	
  

 	
 0.25%

 	
  

 	
  

 	
 0.625%

 
	
  Category
 4:

 	
  

 	
  

 	
 > 2.00 to 1.00 but

< 2.50 to 1.00 

 	
  

 	
  

 	
 0.25%

 	
  

 	
  

 	
 1.375%

 	
  

 	
  

 	
 0.375%

 	
  

 	
  

 	
 0.6875%

 
	
  Category
 5:

 	
  

 	
  

 	
 > 2.50 to 1.00 

 	
  

 	
  

 	
 0.30%

 	
  

 	
  

 	
 1.50%

 	
  

 	
  

 	
 0.50%

 	
  

 	
  

 	
 0.75%

 

          For
purposes of the foregoing, 

          (i) if at
any time the Company fails to deliver the Financials on or before the date the
Financials are due pursuant to Section 5.01, Category 5 shall be deemed
applicable for the period commencing three (3) Business Days after the required
date of delivery and ending on the date which is three (3) Business Days after
the Financials are actually delivered, after which the Category shall be
determined in accordance with the table above as applicable;

          (ii)
adjustments, if any, to the Category then in effect shall be effective three
(3) Business Days after the Administrative Agent has received the applicable
Financials (it being understood and agreed that each change in Category shall
apply during the period commencing on the effective date of such change and
ending on the date immediately preceding the effective date of the next such
change); and 

2

          (iii)
notwithstanding the foregoing, Category 1 shall be deemed to be applicable
until the Administrative Agent’s receipt of the applicable Financials for the
Company’s first fiscal quarter ending after the Effective Date (unless such
Financials demonstrate that Category 2, 3, 4 or 5 should have been applicable
during such period, in which case such other Category shall be deemed to be
applicable during such period) and adjustments to the Category then in effect
shall thereafter be effected in accordance with the preceding paragraphs. 

                    “Approved
Fund” has the meaning assigned to such term in Section 9.04. 

                    “Assignment
and Assumption” means an assignment and assumption agreement entered into
by a Lender and an assignee (with the consent of any party whose consent is
required by Section 9.04), and accepted by the Administrative Agent, in the
form of Exhibit A or any other form approved by the Administrative Agent.  

                    “Augmenting
Lender” has the meaning assigned to such term in Section 2.20. 

                    “Availability
Period” means the period from and including the Effective Date to but
excluding the earlier of the Maturity Date and the date of termination of the
Commitments. 

                    “Available
Revolving Commitment” means, at any time with respect to any Lender, the
Commitment of such Lender then in effect minus the Revolving Credit Exposure of
such Lender at such time; it being understood and agreed that any Lender’s
Swingline Exposure shall not be deemed to be a component of the Revolving
Credit Exposure for purposes of calculating the commitment fee under Section
2.12(a). 

                    “Banking
Services” means each and any of the following bank services provided to the
Company or any Subsidiary by any Lender or any of its Affiliates: (a) credit
cards for commercial customers (including, without limitation, commercial
credit cards and purchasing cards), (b) stored value cards and (c) treasury
management services (including, without limitation, controlled disbursement,
automated clearinghouse transactions, return items, overdrafts and interstate
depository network services). 

                    “Banking
Services Agreement” means any agreement entered into by the Company or any
Subsidiary in connection with Banking Services. 

                    “Banking
Services Obligations” means any and all obligations of the Company or any
Subsidiary, whether absolute or contingent and howsoever and whensoever
created, arising, evidenced or acquired (including all renewals, extensions and
modifications thereof and substitutions therefor) in connection with Banking
Services. 

                    “Bankruptcy
Event” means, with respect to any Person, such Person becomes the subject
of a bankruptcy or insolvency proceeding, or has had a receiver, conservator,
trustee, administrator, custodian, assignee for the benefit of creditors or
similar Person charged with the reorganization or liquidation of its business
appointed for it, or, in the good faith determination of the Administrative
Agent, has taken any action in furtherance of, or indicating its consent to,
approval of, or acquiescence in, any such proceeding or appointment, provided
that a Bankruptcy Event shall not result solely by virtue of any ownership
interest, or the acquisition of any ownership interest, in such Person by a
Governmental Authority or instrumentality thereof, provided, further, that such
ownership interest does not result in or provide such Person with immunity from
the jurisdiction of courts within the United States or from the enforcement of
judgments or writs of attachment on its assets or permit such Person (or such
Governmental Authority or instrumentality) to reject, repudiate, disavow or
disaffirm any contracts or agreements made by such Person. 

3

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

                    “Borrower”
means the Company or any Foreign Subsidiary Borrower. 

                    “Borrowing”
means (a) Revolving Loans of the same Type, made, converted or continued on the
same date and, in the case of Eurocurrency Loans, as to which a single Interest
Period is in effect, (b) Incremental Term Loans of the same Type, made, converted
or continued on the same date and, in the case of Eurocurrency Loans, as to
which a single Interest Period is in effect or (c) a Swingline Loan. 

                    “Borrowing
Request” means a request by any Borrower for a Revolving Borrowing in accordance
with Section 2.03 in the form attached hereto as Exhibit J-1.  

                    “Borrowing
Subsidiary Agreement” means a Borrowing Subsidiary Agreement substantially
in the form of Exhibit F-1.  

                    “Borrowing
Subsidiary Termination” means a Borrowing Subsidiary Termination
substantially in the form of Exhibit F-2.  

                    “Burdensome
Restrictions” means any consensual encumbrance or restriction of the type
described in clause (a) or (b) of Section 6.08 (without giving effect to any
exceptions described in clauses (i) through (iv) of such Section 6.08). 

                    “Business
Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain
closed; provided that, when used in connection with a Eurocurrency Loan, the
term “Business Day” shall also exclude any day on which banks are not open for
dealings in the relevant Agreed Currency in the London interbank market or the
principal financial center of such Agreed Currency (and, if the Borrowings or
LC Disbursements which are the subject of a borrowing, drawing, payment,
reimbursement or rate selection are denominated in euro, the term “Business
Day” shall also exclude any day on which the TARGET2 payment system is not open
for the settlement of payments in euro).  

                    “Canadian
Dollars” means the lawful currency of Canada. 

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

                    “Change
in Control” means (a) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the
Securities Exchange Act of 1934 and the rules of the SEC thereunder as in
effect on the date hereof), of Equity Interests representing more than 35% of
the aggregate ordinary voting power represented by the issued and outstanding
Equity Interests of the Company; (b) occupation of a majority of the seats
(other than vacant seats) on the board of directors of the Company by Persons
who were neither (i) nominated by the board of directors of the Company nor
(ii) appointed by directors so nominated; (c) the acquisition of direct or
indirect Control of the Company by any Person or group; (d) the occurrence of a
change in control, or other similar provision, as defined in any agreement or
instrument evidencing any Material Indebtedness (triggering a default or
mandatory prepayment, which default or mandatory prepayment has not been waived
in 

4

writing); or
(e) the Company ceases to own, directly or indirectly, and Control 100% (other
than directors’ qualifying shares) of the ordinary voting and economic power of
any Foreign Subsidiary Borrower. 

                    “Change
in Law” means the occurrence, after the date of this Agreement (or with
respect to any Lender, if later, the date on which such Lender becomes a
Lender), of any of the following: (a) the adoption or taking effect of any law,
rule, regulation or treaty, (b) any change in any law, rule, regulation or
treaty or in the administration, interpretation or application thereof by any Governmental
Authority, or (c) the making or issuance of any request, rules, guideline,
requirement or directive (whether or not having the force of law) by any
Governmental Authority; provided however, that notwithstanding anything herein
to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection
Act and all requests, rules, guidelines, requirements and directives
thereunder, issued in connection therewith or in implementation thereof, and
(ii) all requests, rules, guidelines, requirements and directives promulgated
by the Bank for International Settlements, the Basel Committee on Banking
Supervision (or any successor or similar authority) or the United States or
foreign regulatory authorities, in each case pursuant to Basel III, shall in
each case be deemed to be a “Change in Law” regardless of the date enacted,
adopted, issued or implemented.  

                    “Class”,
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Revolving Loans, Incremental Term
Loans or Swingline Loans. 

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

                    “Co-Documentation
Agent” means each of U.S. Bank National Association and HSBC Bank USA,
National Association in its capacity as co-documentation agent for the credit
facility evidenced by this Agreement. 

                    “Commitment”
means, with respect to each Lender, the commitment of such Lender to make
Revolving Loans and to acquire participations in Letters of Credit and
Swingline Loans hereunder, expressed as an amount representing the maximum
aggregate amount of such Lender’s Revolving Credit Exposure hereunder, as such
commitment may be (a) reduced or terminated from time to time pursuant to
Section 2.09, (b) increased from time to time pursuant to Section 2.20 and (c)
reduced or increased from time to time pursuant to assignments by or to such
Lender pursuant to Section 9.04. The initial amount of each Lender’s Commitment
is set forth on Schedule 2.01, or in the Assignment and Assumption or other
documentation contemplated hereby pursuant to which such Lender shall have
assumed its Commitment, as applicable. 

                    “Company”
means MTS Systems Corporation, a Minnesota corporation. 

                    “Computation
Date” is defined in Section 2.04. 

                    “Connection
Income Taxes” means Other Connection Taxes that are imposed on or measured
by net income (however denominated) or that are franchise Taxes or branch
profits Taxes. 

                    “Consolidated
EBITDA” means Consolidated Net Income plus,
to the extent deducted from revenues in determining Consolidated Net Income,
(i) Consolidated Interest Expense, (ii) expense for taxes paid or accrued,
(iii) depreciation, (iv) amortization, (v) extraordinary non-cash losses
incurred other than in the ordinary course of business minus, to the extent included in
Consolidated Net Income, (vi) interest income and (vii) extraordinary gains
realized other than in the ordinary course of business, all calculated for the
Company and its Subsidiaries in accordance with GAAP on a consolidated basis.
For 

5

the purposes of calculating Consolidated EBITDA for any period of four
consecutive fiscal quarters (each such period, a “Reference Period”), (i) if at
any time during such Reference Period the Company or any Subsidiary shall have
made any Material Disposition, the Consolidated EBITDA for such Reference
Period shall be reduced by an amount equal to the Consolidated EBITDA (if
positive) attributable to the property that is the subject of such Material
Disposition for such Reference Period or increased by an amount equal to the
Consolidated EBITDA (if negative) attributable thereto for such Reference Period,
and (ii) if during such Reference Period the Company or any Subsidiary shall
have made a Material Acquisition, Consolidated EBITDA for such Reference Period
shall be calculated after giving pro forma effect thereto as if such Material
Acquisition occurred on the first day of such Reference Period. As used in this
definition, “Material Acquisition” means any acquisition of property or series
of related acquisitions of property that (a) constitutes (i) assets comprising
all or substantially all or any significant portion of a business or operating
unit of a business, or (ii) all or substantially all of the common stock or
other Equity Interests of a Person, and (b) involves the payment of
consideration by the Company and its Subsidiaries in excess of $5,000,000; and
“Material Disposition” means any sale, transfer or disposition of property or
series of related sales, transfers, or dispositions of property that yields
gross proceeds to the Company or any of its Subsidiaries in excess of
$5,000,000.  

                    “Consolidated
Interest Expense” means, with reference to any period, the interest expense
(including without limitation interest expense under Capital Lease Obligations
that is treated as interest in accordance with GAAP) of the Company and its
Subsidiaries calculated on a consolidated basis for such period with respect to
all outstanding Indebtedness of the Company and its Subsidiaries allocable to
such period in accordance with GAAP (including, without limitation, net costs
under interest rate Swap Agreements to the extent such net costs are allocable
to such period in accordance with GAAP). 

                    “Consolidated
Net Income” means, with reference to any period, the net income (or loss)
of the Company and its Subsidiaries calculated in accordance with GAAP on a
consolidated basis (without duplication) for such period. 

                    “Consolidated
Total Assets” means, as of the date of any determination thereof, total
assets of the Company and its Subsidiaries calculated in accordance with GAAP
on a consolidated basis as of such date. 

                    “Consolidated
Total Indebtedness” means at any time the sum, without duplication, of (a)
the aggregate Indebtedness of the Company and its Subsidiaries calculated on a
consolidated basis as of such time in accordance with GAAP, (b) the aggregate
amount of Indebtedness of the Company and its Subsidiaries relating to the
maximum drawing amount of all letters of credit outstanding and bankers
acceptances and (c) Indebtedness of the type referred to in clauses (a) or (b)
hereof of another Person guaranteed by the Company or any of its Subsidiaries;
provided that Consolidated Total Indebtedness shall exclude the aggregate
amount of Indebtedness of the Company and its Subsidiaries in respect of
undrawn performance and commercial letters of credit, Guarantees related
thereto, and obligations with respect to deposits and advances in the ordinary
course of business.  

                    “Control”
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether through the
ability to exercise voting power, by contract or otherwise. “Controlling” and
“Controlled” have meanings correlative thereto. 

                    “Country
Risk Event” means: 

	
  

 	
  

 
	
  

 	
           (i)          any
 law, action or failure to act by any Governmental Authority in any Borrower’s
 or Letter of Credit beneficiary’s country which has the effect of: 

 

6

	
  

 	
  

 
	
  

 	
           (a)          changing
 the obligations under the relevant Letter of Credit, the Credit Agreement or
 any of the other Loan Documents as originally agreed or otherwise creating
 any additional liability, cost or expense to an Issuing Bank, the Lenders or
 the Administrative Agent, 

 
	
  

 	
  

 
	
  

 	
           (b)          changing
 the ownership or control by such Borrower or Letter of Credit beneficiary of
 its business, or 

 
	
  

 	
  

 
	
  

 	
           (c)          preventing
 or restricting the conversion into or transfer of the applicable Agreed
 Currency; 

 

           (ii)          force
 majeure; or 

           (iii)         any
 similar event 

which, in relation to (i), (ii) and (iii), directly or indirectly,
prevents or restricts the payment or transfer of any amounts owing under the
relevant Letter of Credit in the applicable Agreed Currency into an account
designated by the Administrative Agent or the relevant Issuing Bank and freely
available to the Administrative Agent or such Issuing Bank. 

                    “Credit
Event” means a Borrowing, the issuance of a Letter of Credit, an LC
Disbursement or any of the foregoing. 

                    “Credit
Party” means the Administrative Agent, each Issuing Bank, the Swingline
Lender or any other Lender. 

                    “Deemed
Dividend” means, with respect to any Foreign Subsidiary, such Foreign
Subsidiary’s accumulated and undistributed earnings and profits being deemed to
be repatriated to the Company or the applicable parent Domestic Subsidiary
under Section 956 of the Code. 

                    “Default”
means any event or condition which constitutes an Event of Default or which
upon notice, lapse of time or both would, unless cured or waived, become an
Event of Default. 

                    “Defaulting
Lender” means any Lender that (a) has failed, within two (2) Business Days
of the date required to be funded or paid, to (i) fund any portion of its
Loans, (ii) fund any portion of its participations in Letters of Credit or
Swingline Loans or (iii) pay over to any Credit Party any other amount required
to be paid by it hereunder, unless, in the case of clause (i) above, such
Lender notifies the Administrative Agent in writing that such failure is the
result of such Lender’s good faith determination that a condition precedent to
funding (specifically identified and including the particular default, if any)
has not been satisfied, (b) has notified the Company or any Credit Party in
writing, or has made a public statement to the effect, that it does not intend
or expect to comply with any of its funding obligations under this Agreement
(unless such writing or public statement indicates that such position is based
on such Lender’s good faith determination that a condition precedent
(specifically identified and including the particular default, if any) to
funding a loan under this Agreement cannot be satisfied) or generally under
other agreements in which it commits to extend credit, (c) has failed, within
three (3) Business Days after request by a Credit Party, acting in good faith,
to provide a certification in writing from an authorized officer of such Lender
that it will comply with its obligations (and is financially able to meet such
obligations) to fund prospective Loans and participations in then outstanding
Letters of Credit and Swingline Loans under this Agreement, provided that such
Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon
such Credit Party’s receipt of such certification in form 

7

and substance
satisfactory to it and the Administrative Agent, or (d) has become the subject
of a Bankruptcy Event. 

                    “Dollar
Amount” of any currency at any date shall mean (i) the amount of such
currency if such currency is Dollars or (ii) the equivalent amount thereof in
Dollars if such currency is a Foreign Currency, calculated on the basis of the
Exchange Rate for such currency, on or as of the most recent Computation Date
provided for in Section 2.04. 

                    “Dollars”
or “$” refers to lawful money of the United States of America.  

                    “Domestic
Subsidiary” means a Subsidiary organized under the laws of a jurisdiction
located in the United States of America. 

                    “Effective
Date” means the date on which the conditions specified in Section 4.01 are
satisfied (or waived in accordance with Section 9.02). 

                    “Eligible
Foreign Subsidiary” means (i) MTS Systems GmbH, a limited liability company
organized under the laws of Germany and (ii) any other Foreign Subsidiary that
is approved from time to time by the Administrative Agent and each of the
Lenders. 

                    “Environmental
Laws” means all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices or binding agreements issued,
promulgated or entered into by any Governmental Authority, relating in any way
to the environment, preservation or reclamation of natural resources, the
management, release or threatened release of any Hazardous Material or to
health and safety matters. 

                    “Environmental
Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or
indemnities), of the Company or any Subsidiary directly or indirectly resulting
from or based upon (a) violation of any Environmental Law, (b) the generation,
use, handling, transportation, storage, treatment or disposal of any Hazardous
Materials, (c) exposure to any Hazardous Materials, (d) the release or
threatened release of any Hazardous Materials into the environment or (e) any
contract, agreement or other consensual arrangement pursuant to which liability
is assumed or imposed with respect to any of the foregoing. 

                    “Equity
Interests” means shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or
other equity ownership interests in a Person, and any warrants, options or
other rights entitling the holder thereof to purchase or acquire any of the
foregoing. 

                    “Equivalent
Amount” of any currency with respect to any amount of Dollars at any date
shall mean the equivalent in such currency of such amount of Dollars,
calculated on the basis of the Exchange Rate for such other currency at 11:00
a.m., London time, on the date on or as of which such amount is to be
determined. 

                    “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time
to time. 

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

8

                    “ERISA
Event” means (a) any “reportable event”, as defined in Section 4043 of
ERISA or the regulations issued thereunder with respect to a Plan (other than
an event for which the 30-day notice period is waived); (b) the failure to
satisfy the “minimum funding standard” (as defined in Section 412 of the Code
or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to
Section 412(c) of the Code or Section 302(c) of ERISA of an application for a
waiver of the minimum funding standard with respect to any Plan; (d) the
incurrence by the Company or any of its ERISA Affiliates of any liability under
Title IV of ERISA with respect to the termination of any Plan; (e) the receipt
by the Company or any ERISA Affiliate from the PBGC or a plan administrator of
any notice relating to an intention to terminate any Plan or Plans or to
appoint a trustee to administer any Plan; (f) the incurrence by the Company or
any of its ERISA Affiliates of any liability with respect to the withdrawal or
partial withdrawal of the Company or any of its ERISA Affiliates from any Plan
or Multiemployer Plan; or (g) the receipt by the Company or any ERISA Affiliate
of any notice, or the receipt by any Multiemployer Plan from the Company or any
ERISA Affiliate of any notice, concerning the imposition upon the Company or
any of its ERISA Affiliates of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA. 

                    “euro”
and/or “EUR” means the single currency of the Participating Member States.  

                    “Eurocurrency”,
when used in reference to a currency means an Agreed Currency and when used in
reference to any Loan or Borrowing, means that such Loan, or the Loans
comprising such Borrowing, bears interest at a rate determined by reference to
the Adjusted LIBO Rate. 

                    “Eurocurrency
Payment Office” of the Administrative Agent shall mean, for each Foreign Currency,
the office, branch, affiliate or correspondent bank of the Administrative Agent
for such currency as specified from time to time by the Administrative Agent to
the Company and each Lender. 

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

                    “Exchange
Rate” means, on any day, with respect to any Foreign Currency, the rate at
which such Foreign Currency may be exchanged into Dollars, as set forth at
approximately 11:00 a.m., Local Time, on such date on the Reuters World
Currency Page for such Foreign Currency. In the event that such rate does not
appear on any Reuters World Currency Page, the Exchange Rate with respect to
such Foreign Currency shall be determined by reference to such other publicly
available service for displaying exchange rates as may be reasonably selected
by the Administrative Agent or, in the event no such service is selected, such
Exchange Rate shall instead be calculated on the basis of the arithmetical mean
of the buy and sell spot rates of exchange of the Administrative Agent for such
Foreign Currency on the London market at 11:00 a.m., Local Time, on such date
for the purchase of Dollars with such Foreign Currency, for delivery two
Business Days later; provided, that if at the time of any such determination,
for any reason, no such spot rate is being quoted, the Administrative Agent,
after consultation with the Company, may use any reasonable method it deems
appropriate to determine such rate, and such determination shall be conclusive
absent manifest error.  

                    “Excluded
Taxes” means any of the following Taxes imposed on or with respect to a
Recipient or required to be withheld or deducted from a payment to a Recipient,
(a) Taxes imposed on or measured by net income (however denominated), franchise
Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such
Recipient being organized under the laws of, or having its principal office or,
in the case of any Lender, its applicable lending office located in, the
jurisdiction imposing such Tax (or any political subdivision thereof) or (ii)
that are Other Connection Taxes, (b) in the case of a Lender, U.S. Federal
withholding Taxes imposed on amounts payable to or for the account of such Lender
with respect to an applicable interest in a Loan or Commitment pursuant to a
law in effect on the date on which 

9

(i) such Lender acquires such interest in the Loan or Commitment (other
than pursuant to an assignment request by any Borrower under Section 2.19(b))
or (ii) such Lender changes its lending office, except in each case to the
extent that, pursuant to Section 2.17, amounts with respect to such Taxes were
payable either to such Lender’s assignor immediately before such Lender
acquired the applicable interest in a Loan or Commitment or to such Lender
immediately before it changed its lending office, (c) Taxes attributable to
such Recipient’s failure to comply with Section 2.17(f) and (d) any U.S.
Federal withholding Taxes imposed under FATCA. 

                    “Existing
Credit Agreement” means that certain Credit Agreement dated as of December
18, 2007 by and among the Company, the foreign subsidiary borrowers party
thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative
agent, as amended, restated, supplemented or otherwise modified prior to the
Effective Date. 

                    “Existing
Letters of Credit” is defined in Section 2.06(a). 

                    “FATCA”
means Sections 1471 through 1474 of the Code, as of the date of this Agreement
(or any amended or successor version that is substantively comparable and not
materially more onerous to comply with), any current or future regulations or
official interpretations thereof and any agreement entered into pursuant to
Section 1471(b)(1) of the Code. 

                    “Federal
Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight
Federal funds transactions with members of the Federal Reserve System arranged
by Federal funds brokers, as published on the next succeeding Business Day by
the Federal Reserve Bank of New York, or, if such rate is not so published for
any day that is a Business Day, the average (rounded upwards, if necessary, to
the next 1/100 of 1%) of the quotations for such day for such transactions
received by the Administrative Agent from three Federal funds brokers of
recognized standing selected by it. 

                    “Financial
Officer” means the chief financial officer, principal accounting officer,
treasurer or controller of the Company. 

                    “Financials”
means the annual or quarterly financial statements, and accompanying
certificates and other documents, of the Company and its Subsidiaries required
to be delivered pursuant to Section 5.01(a) or 5.01(b). 

                    “Foreign
Currencies” means Agreed Currencies other than Dollars. 

                    “Foreign
Currency LC Exposure” means, at any time, the sum of (a) the Dollar Amount
of the aggregate undrawn and unexpired amount of all outstanding Foreign
Currency Letters of Credit at such time plus (b) the aggregate principal Dollar
Amount of all LC Disbursements in respect of Foreign Currency Letters of Credit
that have not yet been reimbursed at such time. 

                    “Foreign
Currency Letter of Credit” means a Letter of Credit denominated in a
Foreign Currency. 

                    “Foreign
Lender” means (a) if the applicable Borrower is a U.S. Person, a Lender,
with respect to such Borrower, that is not a U.S. Person, and (b) if the
applicable Borrower is not a U.S. Person, a Lender, with respect to such
Borrower, that is resident or organized under the laws of a jurisdiction other
than that in which the Borrower is resident for tax purposes. 

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

10

                    “Foreign
Subsidiary Borrower” means any Eligible Foreign Subsidiary that has become
a Foreign Subsidiary Borrower pursuant to Section 2.23 and that has not ceased
to be a Foreign Subsidiary Borrower pursuant to such Section. 

                    “Foreign
Subsidiary Borrower Sublimit” means $50,000,000. 

                    “GAAP”
means generally accepted accounting principles in the United States of America.

                    “Governmental
Authority” means the government of the United States of America, any other
nation or any political subdivision thereof, whether state or local, and any
agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government. 

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

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

                    “Hostile
Acquisition” means (a) the acquisition of the Equity Interests of a Person
through a tender offer or similar solicitation of the owners of such Equity
Interests which has not been approved (prior to such acquisition) by the board
of directors (or any other applicable governing body) of such Person or by
similar action if such Person is not a corporation and (b) any such acquisition
as to which such approval has been withdrawn. 

                    “Increasing
Lender” has the meaning assigned to such term in Section 2.20. 

                    “Incremental
Term Loan” has the meaning assigned to such term in Section 2.20. 

                    “Incremental
Term Loan Amendment” has the meaning assigned to such term in Section 2.20.

                    “Indebtedness”
of any Person means, without duplication, (a) all obligations of such Person
for borrowed money or with respect to deposits or advances of any kind, (b) all
obligations of such Person evidenced by bonds, debentures, notes or similar
instruments, (c) all obligations of such Person upon which interest charges are
customarily paid, (d) all obligations of such Person under conditional sale or
other title retention agreements relating to property acquired by such Person,
(e) all obligations of such Person in respect of the deferred purchase price of
property or services (excluding current accounts 

11

payable
incurred in the ordinary course of business), (f) all Indebtedness of others
secured by (or for which the holder of such Indebtedness has an existing right,
contingent or otherwise, to be secured by) any Lien on property owned or
acquired by such Person, whether or not the Indebtedness secured thereby has
been assumed, (g) all Guarantees by such Person of Indebtedness of others, (h)
all Capital Lease Obligations of such Person, (i) all obligations, contingent
or otherwise, of such Person as an account party in respect of letters of
credit and letters of guaranty, (j) all obligations, contingent or otherwise,
of such Person in respect of bankers’ acceptances and (k) obligations of such
Person under Sale and Leaseback Transactions (other than such obligations
constituting operating lease obligations). The Indebtedness of any Person shall
include the Indebtedness of any other entity (including any partnership in
which such Person is a general partner) to the extent such Person is liable
therefor as a result of such Person’s ownership interest in or other
relationship with such entity, except to the extent the terms of such
Indebtedness provide that such Person is not liable therefor. 

                    “Indemnified
Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with
respect to any payment made by or on account of any obligation of any Loan
Party under any Loan Document and (b) to the extent not otherwise described in
clause (a), Other Taxes. 

                    “Information
Memorandum” means the Confidential Information Memorandum dated August,
2012 relating to the Company and the Transactions. 

                    “Interest
Coverage Ratio” has the meaning assigned to such term in Section 6.11(b). 

                    “Interest
Election Request” means a request by the applicable Borrower to convert or
continue a Revolving Borrowing in accordance with Section 2.08 in the form
attached hereto as Exhibit J-2.  

                    “Interest
Payment Date” means (a) with respect to any ABR Loan (other than a
Swingline Loan), the last day of each March, June, September and December and
the Maturity Date, (b) with respect to any Eurocurrency Loan, the last day of
the Interest Period applicable to the Borrowing of which such Loan is a part
and, in the case of a Eurocurrency Borrowing with an Interest Period of more
than three months’ duration, each day prior to the last day of such Interest
Period that occurs at intervals of three months’ duration after the first day
of such Interest Period and the Maturity Date and (c) with respect to any Swingline
Loan, the day that such Loan is required to be repaid and the Maturity Date. 

                    “Interest
Period” means with respect to any Eurocurrency Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically corresponding
day in the calendar month that is one, two, three or six months thereafter, as
the applicable Borrower (or the Company on behalf of the applicable Borrower)
may elect; provided, that (i) if any Interest Period would end on a day other
than a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless such next succeeding Business Day would fall in
the next calendar month, in which case such Interest Period shall end on the
next preceding Business Day and (ii) any Interest Period that commences on the
last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the last calendar month of such Interest
Period) shall end on the last Business Day of the last calendar month of such
Interest Period. For purposes hereof, the date of a Borrowing initially shall
be the date on which such Borrowing is made and, in the case of a Revolving
Borrowing, thereafter shall be the effective date of the most recent conversion
or continuation of such Borrowing.  

                    “IRS”
means the United States Internal Revenue Service. 

                    “Issuing
Bank” means, as the context may require, (a) JPMorgan Chase Bank, N.A.,
with respect to Letters of Credit issued by it, or (b) any other Lender
selected by the Company and approved 

12

by the Administrative Agent (which consent shall not be unreasonably
withheld, delayed or conditioned) which agrees to act as an Issuing Bank
hereunder, with respect to Letters of Credit issued by it, and in each case in
its capacity as an issuer of Letters of Credit hereunder, and its successors in
such capacity as provided in Section 2.06(i). Each Issuing Bank may, in its
discretion, arrange for one or more Letters of Credit to be issued by Affiliates
of such Issuing Bank, in which case the term “Issuing Bank” shall include any
such Affiliate with respect to Letters of Credit issued by such Affiliate. 

                    “Japanese
Yen” or “¥” means the lawful currency of Japan. 

                    “LC
Disbursement” means a payment made by an Issuing Bank pursuant to a Letter
of Credit. 

                    “LC
Exposure” means, at any time, the sum of (a) the aggregate undrawn Dollar
Amount of all outstanding Letters of Credit at such time plus (b) the aggregate
Dollar Amount of all LC Disbursements that have not yet been reimbursed by or
on behalf of the Company at such time. The LC Exposure of any Lender at any
time shall be its Applicable Percentage of the total LC Exposure at such time. 

                    “Lenders”
means the Persons listed on Schedule 2.01 and any other Person that shall have
become a Lender hereunder pursuant to Section 2.20 or pursuant to an Assignment
and Assumption, other than any such Person that ceases to be a party hereto
pursuant to an Assignment and Assumption. Unless the context otherwise
requires, the term “Lenders” includes the Swingline Lender and each Issuing
Bank.  

                    “Letter
of Credit” means any letter of credit issued pursuant to this Agreement. 

                    “Leverage
Ratio” has the meaning assigned to such term in Section 6.11(a). 

                    “LIBO
Rate” means, with respect to any Eurocurrency Borrowing for any Interest
Period, the rate appearing on, in the case of Dollars, Reuters Screen LIBOR01
Page and, in the case of any Foreign Currency, the appropriate page of such
service which displays British Bankers Association Interest Settlement Rates
for deposits in such Foreign Currency (or, in each case, 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 Administrative Agent from time to time
for purposes of providing quotations of interest rates applicable to deposits
in the relevant Agreed Currency in the London interbank market) at
approximately 11:00 a.m., London time, two (2) Business Days prior to (or, in
the case of Loans denominated in Pounds Sterling, on the day of) the
commencement of such Interest Period, as the rate for deposits in the relevant
Agreed Currency with a maturity comparable to such Interest Period. In the
event that such rate is not available at such time for any reason, then the
“LIBO Rate” with respect to such Eurocurrency Borrowing for such Interest
Period shall be the rate at which deposits in the relevant Agreed Currency in
an Equivalent Amount of $5,000,000 and for a maturity comparable to such
Interest Period are offered by the principal London office of the
Administrative Agent in immediately available funds in the London interbank
market at approximately 11:00 a.m., London time, two (2) Business Days prior to
(or, in the case of Loans denominated in Pounds Sterling, on the day of) the
commencement of such Interest Period.  

                    “Lien”
means, with respect to any asset, (a) any mortgage, deed of trust, lien,
pledge, hypothecation, encumbrance, charge or security interest in, on or of
such asset, (b) the interest of a vendor or a lessor under any conditional sale
agreement, capital lease or title retention agreement (or any financing lease
having substantially the same economic effect as any of the foregoing) relating
to such 

13

asset and (c) in the case of securities, any purchase option, call or
similar right of a third party with respect to such securities. 

                    “Loan
Documents” means this Agreement, each Borrowing Subsidiary Agreement, each
Borrowing Subsidiary Termination, the Subsidiary Guaranty, any promissory notes
executed and delivered pursuant to Section 2.10(e) and any and all other
instruments and documents executed and delivered in connection with any of the
foregoing. 

                    “Loan
Parties” means, collectively, the Borrowers and the Subsidiary Guarantors. 

                    “Loans”
means the loans made by the Lenders to the Borrowers pursuant to this
Agreement. 

                    “Local
Time” means (i) Chicago time in the case of a Loan, Borrowing or LC
Disbursement denominated in Dollars and (ii) local time in the case of a Loan,
Borrowing or LC Disbursement denominated in a Foreign Currency (it being
understood that such local time shall mean London, England time unless
otherwise notified by the Administrative Agent). 

                    “Mandatory
Cost” is described in Schedule 2.02.  

                    “Material
Adverse Effect” means a material adverse effect on (a) the business,
assets, property, condition (financial or otherwise) or prospects of the
Company and the Subsidiaries taken as a whole or (b) the validity or
enforceability of this Agreement or any and all other Loan Documents or the
rights or remedies of the Administrative Agent and the Lenders thereunder. 

                    “Material
Indebtedness” means any Indebtedness (other than the Loans and Letters of
Credit), or obligations in respect of one or more Swap Agreements, of any one
or more of the Company and its Subsidiaries in an aggregate principal amount
exceeding $10,000,000. For purposes of determining Material Indebtedness, the
“principal amount” of the obligations of the Company or any Subsidiary in
respect of any Swap Agreement at any time shall be the maximum aggregate amount
(giving effect to any netting agreements) that the Company or such Subsidiary
would be required to pay if such Swap Agreement were terminated at such time. 

                    “Material
Subsidiary” means each Subsidiary (i) which, as of the most recent fiscal
quarter of the Company, for the period of four consecutive fiscal quarters then
ended, for which financial statements have been delivered pursuant to Section
5.01, contributed greater than ten percent (10%) of the Company’s Consolidated
EBITDA for such period or (ii) which contributed greater than ten percent (10%)
of Consolidated Total Assets as of such date; provided that, if at any time the
aggregate amount of Consolidated EBITDA or Consolidated Total Assets
attributable to all Subsidiaries that are not Material Subsidiaries exceeds
twenty five percent (25%) of Consolidated EBITDA for any such period or twenty
five percent (25%) of Consolidated Total Assets as of the end of any such
fiscal quarter, the Company (or, in the event the Company has failed to do so
within ten days, the Administrative Agent) shall designate sufficient
Subsidiaries as “Material Subsidiaries” to eliminate such excess, and such
designated Subsidiaries shall for all purposes of this Agreement constitute
Material Subsidiaries.  

                    “Maturity
Date” means September 28, 2017. 

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

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

14

                    “New
Money Credit Event” means with respect to any Issuing Bank, any increase
(directly or indirectly) in such Issuing Bank’s exposure (whether by way of
additional credit or banking facilities or otherwise, including as part of a
restructuring) to any Borrower or any Governmental Authority in any Borrower’s
or any applicable Letter of Credit beneficiary’s country occurring by reason of
(i) any law, action or requirement of any Governmental Authority in such
Borrower’s or such Letter of Credit beneficiary’s country, or (ii) any request
in respect of external indebtedness of borrowers in such Borrower’s or such
Letter of Credit beneficiary’s country applicable to banks generally which
conduct business with such borrowers, or (iii) any agreement in relation to
clause (i) or (ii), in each case to the extent calculated by reference to the
aggregate Revolving Credit Exposures outstanding prior to such increase. 

                    “Obligations”
means all indebtedness (including interest and fees accruing during the
pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such proceeding),
obligations and liabilities of any of the Loan Parties to any of the Lenders,
the Administrative Agent any Issuing Bank or any indemnified party,
individually or collectively, existing on the Effective Date or arising
thereafter, direct or indirect, joint or several, absolute or contingent,
matured or unmatured, liquidated or unliquidated, secured or unsecured, arising
by contract, operation of law or otherwise, arising or incurred under this
Credit Agreement or any of the other Loan Documents or to the Lenders or any of
their Affiliates under any Swap Agreement or any Banking Services Agreement or
in respect of any of the Loans made or reimbursement or other obligations incurred
or any of the Letters of Credit or other instruments at any time evidencing any
thereof. 

                    “Other
Connection Taxes” means, with respect to any Recipient, Taxes imposed as a
result of a present or former connection between such Recipient and the
jurisdiction imposing such Tax (other than connections arising from such
Recipient having executed, delivered, become a party to, performed its
obligations under, received payments under, received or perfected a security
interest under, engaged in any other transaction pursuant to or enforced any
Loan Document, or sold or assigned an interest in any Loan or Loan Document). 

                    “Other
Taxes” means all present or future stamp, court or documentary, intangible,
recording, filing or similar Taxes that arise from any payment made under, from
the execution, delivery, performance, enforcement or registration of, from the
receipt or perfection of a security interest under, or otherwise with respect
to, any Loan Document, except any such Taxes that are Other Connection Taxes
imposed with respect to an assignment (other than an assignment made pursuant
to Section 2.19). 

                    “Overnight
Foreign Currency Rate” means, for any amount payable in a Foreign Currency,
the rate of interest per annum as determined by the Administrative Agent at
which overnight or weekend deposits in the relevant currency (or if such amount
due remains unpaid for more than three (3) Business Days, then for such other
period of time as the Administrative Agent may elect) for delivery in
immediately available and freely transferable funds would be offered by the
Administrative Agent to major banks in the interbank market upon request of
such major banks for the relevant currency as determined above and in an amount
comparable to the unpaid principal amount of the related Credit Event, plus any
taxes, levies, imposts, duties, deductions, charges or withholdings imposed
upon, or charged to, the Administrative Agent by any relevant correspondent
bank in respect of such amount in such relevant currency. 

                    “Parent”
means, with respect to any Lender, any Person as to which such Lender is,
directly or indirectly, a subsidiary. 

                    “Participant”
has the meaning set forth in Section 9.04. 

15

                    “Participant
Register” has the meaning set forth in Section 9.04(c). 

                    “Participating
Member State” means any member state of the European Union that adopts or
has adopted the euro as its lawful currency in accordance with legislation of
the European Union relating to economic and monetary union. 

                    “PBGC”
means the Pension Benefit Guaranty Corporation referred to and defined in ERISA
and any successor entity performing similar functions. 

                    “Permitted
Acquisition” means any acquisition (whether by purchase, merger,
consolidation or otherwise but excluding in any event a Hostile Acquisition) or
series of related acquisitions by the Company or any Subsidiary of (i) all or
substantially all the assets of a Person or division or line of business of a
Person or (ii) all or substantially all the Equity Interests in, a Person, if,
at the time of and immediately after giving effect thereto, (a) no Default has
occurred and is continuing or would arise after giving effect thereto, (b) such
Person or division or line of business is engaged in the same or a similar line
of business as the Company and the Subsidiaries or business reasonably related
thereto, (c) all actions required to be taken with respect to such acquired or
newly formed Subsidiary under Sections 5.09 shall have been taken, (d) the
Company and the Subsidiaries are in compliance, on a pro forma basis reasonably
acceptable to the Administrative Agent after giving effect to such acquisition
(but without giving effect to any synergies or cost savings), with the
covenants contained in Section 6.11 recomputed as of the last day of the most
recently ended fiscal quarter of the Company for which financial statements are
available, as if such acquisition (and any related incurrence or repayment of
Indebtedness, with any new Indebtedness being deemed to be amortized over the
applicable testing period in accordance with its terms) had occurred on the
first day of each relevant period for testing such compliance and, if the
aggregate consideration paid in respect of such acquisition exceeds
$15,000,000, the Company shall have delivered to the Administrative Agent a
certificate of a Financial Officer of the Company to such effect, together with
all relevant financial information, statements and projections requested by the
Administrative Agent and (e) in the case of an acquisition or merger involving
the Company or another Loan Party, the Company or such Loan Party is the
surviving entity of such merger and/or consolidation. 

                    “Permitted
Encumbrances” means: 

	
  

 	
  

 
	
  

 	
           (a) Liens
 imposed by law for Taxes that are not yet due or are being contested in
 compliance with Section 5.04; 

 
	
  

 	
  

 
	
  

 	
           (b)
 carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other
 like Liens imposed by law, arising in the ordinary course of business and
 securing obligations that are not overdue by more than thirty (30) days or
 are being contested in compliance with Section 5.04; 

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (d)
 deposits to secure the performance of bids, trade contracts, leases,
 statutory obligations, surety and appeal bonds, performance bonds and other
 obligations of a like nature, in each case in the ordinary course of
 business; 

 
	
  

 	
  

 
	
  

 	
           (e)
 judgment Liens in respect of judgments that do not constitute an Event of
 Default under clause (k) of Article VII; and 

 

16

	
  

 	
  

 
	
  

 	
           (f)
 easements, zoning restrictions, rights-of-way and similar encumbrances on
 real property imposed by law or arising in the ordinary course of business
 that do not secure any monetary obligations and do not materially detract
 from the value of the affected property or interfere with the ordinary
 conduct of business of the Company or any Subsidiary; 

 
	
  

 	
  

 
	
 provided that the term “Permitted Encumbrances” shall not include any
 Lien securing Indebtedness. 

 
	
  

 	
  

 
	
  

 	
            “Permitted Investments” means: 

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (b)
 investments in commercial paper maturing within 270 days from the date of
 acquisition thereof and having, at such date of acquisition, the highest
 credit rating obtainable from S&P or from Moody’s; 

 
	
  

 	
  

 
	
  

 	
           (c)
 investments in certificates of deposit, banker’s acceptances and time
 deposits maturing within 180 days from the date of acquisition thereof issued
 or guaranteed by or placed with, and money market deposit accounts issued or
 offered by, any domestic office of any commercial bank organized under the
 laws of the United States of America or any State thereof which has a
 combined capital and surplus and undivided profits of not less than
 $500,000,000; 

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (e) money
 market funds that (i) comply with the criteria set forth in SEC Rule 2a-7
 under the Investment Company Act of 1940, (ii) are rated AAA by S&P and
 Aaa by Moody’s and (iii) have portfolio assets of at least $5,000,000,000;
 and 

 
	
  

 	
  

 
	
  

 	
           (f) other
 investments made in accordance with the Company’s investment policy as
 disclosed to the Administrative Agent prior to the Effective Date and with
 such amendments or modifications thereto as are from time to time approved by
 the Administrative Agent. 

 

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

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

                    “Pounds
Sterling” or “£” means the lawful currency of the United Kingdom.  

                    “Prime
Rate” means the rate of interest per annum publicly announced from time to
time by JPMorgan Chase Bank, N.A. as its prime rate in effect at its principal
office in New York City; each change in the Prime Rate shall be effective from
and including the date such change is publicly announced as being effective. 

17

                    “Recipient”
means, as applicable, (a) the Administrative Agent, (b) any Lender and (c) any
Issuing Bank. 

                    “Register”
has the meaning set forth in Section 9.04. 

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

                    “Required
Lenders” means, at any time, Lenders having Revolving Credit Exposures and
unused Commitments representing more than 50% of the sum of the total Revolving
Credit Exposures and unused Commitments at such time. 

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

                    “Revolving
Borrowing” means a Borrowing comprised of Revolving Loans. 

                    “Revolving
Credit Exposure” means, with respect to any Lender at any time, the sum of
the outstanding principal amount of such Lender’s Revolving Loans and its LC
Exposure and Swingline Exposure at such time. 

                    “Revolving
Loan” means a Loan made pursuant to Section 2.01. 

                    “S&P”
means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial
Services LLC business. 

                    “Sale
and Leaseback Transaction” means any sale or other transfer of any property
or asset by any Person with the intent to lease such property or asset as
lessee. 

                    “SEC”
means the United States Securities and Exchange Commission. 

                    “Statutory
Reserve Rate” means, with respect to any currency, a fraction (expressed as
a decimal), the numerator of which is the number one and the denominator of
which is the number one minus the aggregate of the maximum reserve, liquid
asset, fees or similar requirements (including any marginal, special, emergency
or supplemental reserves or other requirements) established by any central
bank, monetary authority, the Board, the Financial Services Authority, the
European Central Bank or other Governmental Authority for any category of
deposits or liabilities customarily used to fund loans in such currency,
expressed in the case of each such requirement as a decimal. Such reserve,
liquid asset, fees or similar requirements shall, in the case of Dollar
denominated Loans, include those imposed pursuant to Regulation D of the Board.
Eurocurrency Loans shall be deemed to be subject to such reserve, liquid asset,
fee or similar requirements without benefit of or credit for proration, exemptions
or offsets that may be available from time to time to any Lender under any
applicable law, rule or regulation, including Regulation D of the Board. The
Statutory Reserve Rate shall be adjusted automatically on and as of the
effective date of any change in any reserve, liquid asset or similar
requirement. 

18

                    “Subordinated
Indebtedness” means any Indebtedness of the Company or any Subsidiary the
payment of which is subordinated to payment of the obligations under the Loan
Documents. 

                    “Subordinated
Indebtedness Documents” means any document, agreement or instrument
evidencing any Subordinated Indebtedness or entered into in connection with any
Subordinated Indebtedness. 

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

                    “Subsidiary”
means any subsidiary of the Company. 

                    “Subsidiary
Guarantor” means each Material Subsidiary (other than Affected Foreign
Subsidiaries and Foreign Subsidiary Borrowers) that is a party to the
Subsidiary Guaranty. The Subsidiary Guarantors on the Effective Date are
identified as such in Schedule 3.01 hereto. 

                    “Subsidiary
Guaranty” means that certain Guaranty in the form of Exhibit G
(including any and all supplements thereto) and executed by each Subsidiary
Guarantor party thereto, and, in the case of any guaranty by a Foreign
Subsidiary, any other guaranty agreements as are requested by the
Administrative Agent and its counsel, in each case as amended, restated,
supplemented or otherwise modified from time to time. 

                    “Swap
Agreement” means any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by
reference to, one or more rates, currencies, commodities, equity or debt
instruments or securities, or economic, financial or pricing indices or
measures of economic, financial or pricing risk or value or any similar
transaction or any combination of these transactions; provided that no
phantom stock or similar plan providing for payments only on account of
services provided by current or former directors, officers, employees or consultants
of the Company or the Subsidiaries shall be a Swap Agreement. 

                    “Swingline
Exposure” means, at any time, the aggregate principal amount of all
Swingline Loans outstanding at such time. The Swingline Exposure of any Lender
at any time shall be its Applicable Percentage of the total Swingline Exposure
at such time. 

                    “Swingline
Lender” means JPMorgan Chase Bank, N.A., in its capacity as lender of
Swingline Loans hereunder. 

                    “Swingline
Loan” means a Loan made pursuant to Section 2.05. 

                    “Swiss
Francs” means the lawful currency of Switzerland. 

                    “Syndication
Agent” means Wells Fargo Bank, National Association in its capacity as
syndication agent for the credit facility evidenced by this Agreement. 

19

                    “TARGET2”
means the Trans-European Automated Real-time Gross Settlement Express Transfer
(TARGET2) payment system (or, if such payment system ceases to be operative,
such other payment system (if any) reasonably determined by the Administrative
Agent to be a suitable replacement) for the settlement of payments in euro. 

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

                    “Transactions”
means the execution, delivery and performance by the Loan Parties of this
Agreement and the other Loan Documents, the borrowing of Loans and other credit
extensions, the use of the proceeds thereof and the issuance of Letters of
Credit hereunder. 

                    “Type”,
when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined
by reference to the Adjusted LIBO Rate or the Alternate Base Rate. 

                    “U.S.
Person” means a “United States person” within the meaning of Section
7701(a)(30) of the Code. 

                    “U.S.
Tax Compliance Certificate” has the meaning assigned to such term in
Section 2.17(f)(ii)(B)(3). 

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

                    “Withholding
Agent” means any Loan Party or the Administrative Agent. 

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

                    SECTION
1.03. Terms Generally. The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”. The word
“will” shall be construed to have the same meaning and effect as the word
“shall”. The word “law” shall be construed as referring to all statutes, rules,
regulations, codes and other laws (including official rulings and
interpretations thereunder having the force of law or with which affected
Persons customarily comply), and all judgments, orders and decrees, of all
Governmental Authorities. Unless the context requires otherwise (a) any
definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other
document as from time to time amended, restated, supplemented or otherwise
modified (subject to any restrictions on such amendments, restatements,
supplements or modifications set forth herein), (b) any definition of or
reference to any statute, rule or regulation shall be construed as referring thereto as from time to time amended,
supplemented or otherwise modified (including by succession of comparable
successor laws), (c) any reference herein to any Person shall be construed to
include such Person’s successors and assigns (subject to any restrictions on
assignment set forth herein) and, in the case of any Governmental Authority,
any

20

other Governmental Authority that shall have succeeded to any or all
functions thereof, (d) the words “herein”, “hereof” and “hereunder”, and words
of similar import, shall be construed to refer to this Agreement in its
entirety and not to any particular provision hereof, (e) all references herein
to Articles, Sections, Exhibits and Schedules shall be construed to refer to
Articles and Sections of, and Exhibits and Schedules to, this Agreement and (f)
the words “asset” and “property” shall be construed to have the same meaning
and effect and to refer to any and all tangible and intangible assets and
properties, including cash, securities, accounts and contract rights. 

                    SECTION
1.04. Accounting Terms; GAAP. Except as otherwise expressly provided
herein, all terms of an accounting or financial nature shall be construed in
accordance with GAAP, as in effect from time to time; provided that, if
the Company notifies the Administrative Agent that the Company requests an
amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the
operation of such provision (or if the Administrative Agent notifies the
Company that the Required Lenders request an amendment to any provision hereof
for such purpose), regardless of whether any such notice is given before or
after such change in GAAP or in the application thereof, then such provision
shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective until such notice shall have
been withdrawn or such provision amended in accordance herewith.
Notwithstanding any other provision contained herein, all terms of an
accounting or financial nature used herein shall be construed, and all
computations of amounts and ratios referred to herein shall be made (i) without
giving effect to any election under Accounting Standards Codification 825-10-25
(or any other Accounting Standards Codification or Financial Accounting
Standard having a similar result or effect) to value any Indebtedness or other
liabilities of the Company or any Subsidiary at “fair value”, as defined
therein and (ii) without giving effect to any treatment of Indebtedness in
respect of convertible debt instruments under Accounting Standards Codification
470-20 (or any other Accounting Standards Codification or Financial Accounting
Standard having a similar result or effect) to value any such Indebtedness in a
reduced or bifurcated manner as described therein, and such Indebtedness shall
at all times be valued at the full stated principal amount thereof. 

ARTICLE II

The Credits

                    SECTION
2.01. Commitments. Subject to the terms and conditions set forth
herein, each Lender agrees to make Revolving Loans to the Borrowers in Agreed
Currencies from time to time during the Availability Period in an aggregate
principal amount that will not result in (a) subject to Sections 2.04 and
2.11(b), the Dollar Amount of such Lender’s Revolving Credit Exposure exceeding
such Lender’s Commitment, (b) subject to Sections 2.04 and 2.11(b), the sum of
the Dollar Amount of the total Revolving Credit Exposures exceeding the Aggregate
Commitment or (c) subject to Sections 2.04 and 2.11(b), the Dollar Amount of
the total outstanding Revolving Loans and LC Exposure in respect of the Foreign
Subsidiary Borrowers exceeding the Foreign Subsidiary Borrower Sublimit. Within
the foregoing limits and subject to the terms and conditions set forth herein,
the Borrowers may borrow, prepay and reborrow Revolving Loans. 

                    SECTION
2.02. Loans and Borrowings. (a) Each Revolving Loan shall be made as
part of a Borrowing consisting of Revolving Loans made by the Lenders ratably
in accordance with their respective Commitments. The failure of any Lender to
make any Loan required to be made by it shall not relieve any other Lender of
its obligations hereunder; provided that the Commitments of the Lenders
are several and no Lender shall be responsible for any other Lender’s failure
to make Loans as required. Any Swingline Loan shall be made in accordance with
the procedures set forth in Section 2.05.

21

 

                    (b)
Subject to Section 2.14, each Revolving Borrowing shall be comprised entirely
of ABR Loans or Eurocurrency Loans as the relevant Borrower may request in
accordance herewith; provided that each ABR Loan shall only be made in
Dollars. Each Swingline Loan shall be an ABR Loan. Each Lender at its option
may make any Loan by causing any domestic or foreign branch or Affiliate of
such Lender to make such Loan (and in the case of an Affiliate, the provisions
of Sections 2.14, 2.15, 2.16 and 2.17 shall apply to such Affiliate to the same
extent as to such Lender); provided that any exercise of such option
shall not affect the obligation of the relevant Borrower to repay such Loan in
accordance with the terms of this Agreement. 

                    (c)
At the commencement of each Interest Period for any Eurocurrency Revolving
Borrowing, such Borrowing shall be in an aggregate amount that is an integral
multiple of $500,000 (or, if such Borrowing is denominated in (i) Japanese Yen,
¥50,000,000 and (ii) a Foreign Currency other than Japanese Yen, 500,000 units
of such currency) and not less than $1,000,000 (or, if such Borrowing is
denominated in (i) Japanese Yen, ¥100,000,000 and (ii) a Foreign Currency other
than Japanese Yen, 1,000,000 units of such currency). At the time that each ABR
Revolving Borrowing is made, such Borrowing shall be in an aggregate amount
that is an integral multiple of $250,000 and not less than $1,000,000; provided
that an ABR Revolving Borrowing may be in an aggregate amount that is equal to
the entire unused balance of the Aggregate Commitment or that is required to
finance the reimbursement of an LC Disbursement as contemplated by Section
2.06(e). Each Swingline Loan shall be in an amount that is an integral multiple
of $100,000 and not less than $500,000. Borrowings of more than one Type and
Class may be outstanding at the same time; provided that there shall not
at any time be more than a total of five (5) Eurocurrency Revolving Borrowings
outstanding. 

                    (d)
Notwithstanding any other provision of this Agreement, no Borrower shall be
entitled to request, or to elect to convert or continue, any Borrowing if the
Interest Period requested with respect thereto would end after the Maturity
Date. 

                    SECTION
2.03. Requests for Revolving Borrowings. To request a Revolving
Borrowing, the applicable Borrower, or the Company on behalf of the applicable
Borrower, shall notify the Administrative Agent of such request (a) by
irrevocable written notice (via a written Borrowing Request signed by the
applicable Borrower, or the Company on behalf of the applicable Borrower,
promptly followed by telephonic confirmation of such request) in the case of a
Eurocurrency Borrowing, not later than 11:00 a.m., Local Time, three (3)
Business Days (in the case of a Eurocurrency Borrowing denominated in Dollars)
or by irrevocable written notice (via a written Borrowing Request signed by
such Borrower, or the Company on its behalf) not later than four (4) Business
Days (in the case of a Eurocurrency Borrowing denominated in a Foreign
Currency), in each case before the date of the proposed Borrowing or (b) by
telephone in the case of an ABR Borrowing, not later than 11:00 a.m., Chicago
time, one (1) Business Day before the date of the proposed Borrowing; provided
that any such notice of an ABR Revolving Borrowing to finance the reimbursement
of an LC Disbursement as contemplated by Section 2.06(e) may be given not later
than 10:00 a.m., Chicago time, on the date of the proposed Borrowing. Each such
telephonic Borrowing Request shall be irrevocable and shall be confirmed
promptly by hand delivery or telecopy to the Administrative Agent of a written
Borrowing Request signed by the applicable Borrower, or the Company on behalf
of the applicable Borrower. Each such telephonic and written Borrowing Request
shall specify the following information in compliance with Section 2.02:

	
  

 	
  

 
	
  

 	
           (i) the
 aggregate amount of the requested Borrowing; 

 
	
  

 	
  

 
	
  

 	
           (ii) the
 date of such Borrowing, which shall be a Business Day; 

 
	
  

 	
  

 
	
  

 	
           (iii)
 whether such Borrowing is to be an ABR Borrowing or a Eurocurrency Borrowing;
 

 

22

	
  

 	
  

 
	
  

 	
           (iv) in
 the case of a Eurocurrency Borrowing, the Agreed Currency and initial
 Interest Period to be applicable thereto, which shall be a period
 contemplated by the definition of the term “Interest Period”; and 

 
	
  

 	
  

 
	
  

 	
           (v) the
 location and number of the applicable Borrower’s account to which funds are
 to be disbursed, which shall comply with the requirements of Section 2.07. 

 

If no election as to the Type of Revolving Borrowing is specified,
then, in the case of a Borrowing denominated in Dollars, the requested
Revolving Borrowing shall be an ABR Borrowing. If no Interest Period is
specified with respect to any requested Eurocurrency Revolving Borrowing, then
the relevant Borrower shall be deemed to have selected an Interest Period of
one month’s duration. Promptly following receipt of a Borrowing Request in
accordance with this Section, the Administrative Agent shall advise each Lender
of the details thereof and of the amount of such Lender’s Loan to be made as
part of the requested Borrowing. 

                    SECTION
2.04. Determination of Dollar Amounts. The Administrative Agent will
determine the Dollar Amount of: 

	
  

 	
  

 
	
  

 	
           (a) each
 Eurocurrency Borrowing as of the date two (2) Business Days prior to the date
 of such Borrowing or, if applicable, the date of conversion/continuation of
 any Borrowing as a Eurocurrency Borrowing, 

 
	
  

 	
  

 
	
  

 	
           (b) the
 LC Exposure as of the date of each request for the issuance, amendment,
 renewal or extension of any Letter of Credit, and 

 
	
  

 	
  

 
	
  

 	
           (c) all
 outstanding Credit Events on and as of the last Business Day of each calendar
 quarter and, during the continuation of an Event of Default, on any other
 Business Day elected by the Administrative Agent in its discretion or upon
 instruction by the Required Lenders. 

 

Each day upon or as of which the Administrative Agent determines Dollar
Amounts as described in the preceding clauses (a), (b) and (c) is herein
described as a “Computation Date” with respect to each Credit Event for which a
Dollar Amount is determined on or as of such day. 

                    SECTION
2.05. Swingline Loans. (a) Subject to the terms and conditions set
forth herein, the Swingline Lender agrees to make Swingline Loans in Dollars to
the Company from time to time during the Availability Period, in an aggregate
principal amount at any time outstanding that will not result in (i) the
aggregate principal amount of outstanding Swingline Loans exceeding $10,000,000
or (ii) the Dollar Amount of the total Revolving Credit Exposures exceeding the
Aggregate Commitment; provided that the Swingline Lender shall not be
required to make a Swingline Loan to refinance an outstanding Swingline Loan.
Within the foregoing limits and subject to the terms and conditions set forth
herein, the Company may borrow, prepay and reborrow Swingline Loans. 

                    (b) To request
a Swingline Loan, the Company shall notify the Administrative Agent of such
request by telephone (confirmed by telecopy), not later than 12:00 noon,
Chicago time, on the day of a proposed Swingline Loan. Each such notice shall
be irrevocable and shall specify the requested date (which shall be a Business Day)
and amount of the requested Swingline Loan. The Administrative Agent will
promptly advise the Swingline Lender of any such notice received from the
Company. The Swingline Lender shall make each Swingline Loan available to the
Company by means of a credit to the general deposit account of the Company with
the Swingline Lender (or, in the case of a Swingline Loan made to finance the
reimbursement of an LC Disbursement as provided in Section 2.06(e), by
remittance to the relevant Issuing Bank) by 3:00 p.m., Chicago time, on the
requested date of such Swingline Loan. 

23

                    
(c) The Swingline Lender may by written notice given to the Administrative
Agent not later than 10:00 a.m., Chicago time, on any Business Day require the
Lenders to acquire participations on such Business Day in all or a portion of
the Swingline Loans outstanding. Such notice shall specify the aggregate amount
of Swingline Loans in which Lenders will participate. Promptly upon receipt of
such notice, the Administrative Agent will give notice thereof to each Lender,
specifying in such notice such Lender’s Applicable Percentage of such Swingline
Loan or Loans. Each Lender hereby absolutely and unconditionally agrees, upon
receipt of notice as provided above, to pay to the Administrative Agent, for
the account of the Swingline Lender, such Lender’s Applicable Percentage of
such Swingline Loan or Loans. Each Lender acknowledges and agrees that its
obligation to acquire participations in Swingline Loans pursuant to this paragraph
is absolute and unconditional and shall not be affected by any circumstance
whatsoever, including the occurrence and continuance of a Default or reduction
or termination of the Commitments, and that each such payment shall be made
without any offset, abatement, withholding or reduction whatsoever. Each Lender
shall comply with its obligation under this paragraph by wire transfer of
immediately available funds, in the same manner as provided in Section 2.07
with respect to Loans made by such Lender (and Section 2.07 shall apply, mutatis
mutandis, to the payment obligations of the Lenders), and the
Administrative Agent shall promptly pay to the Swingline Lender the amounts so
received by it from the Lenders. The Administrative Agent shall notify the
Company of any participations in any Swingline Loan acquired pursuant to this
paragraph, and thereafter payments in respect of such Swingline Loan shall be
made to the Administrative Agent and not to the Swingline Lender. Any amounts
received by the Swingline Lender from the Company (or other party on behalf of
the Company) in respect of a Swingline Loan after receipt by the Swingline
Lender of the proceeds of a sale of participations therein shall be promptly
remitted to the Administrative Agent; any such amounts received by the
Administrative Agent shall be promptly remitted by the Administrative Agent to
the Lenders that shall have made their payments pursuant to this paragraph and
to the Swingline Lender, as their interests may appear; provided that
any such payment so remitted shall be repaid to the Swingline Lender or to the
Administrative Agent, as applicable, if and to the extent such payment is
required to be refunded to the Company for any reason. The purchase of
participations in a Swingline Loan pursuant to this paragraph shall not relieve
the Company of any default in the payment thereof. 

                    SECTION
2.06. Letters of Credit. (a) General. Subject to the terms and
conditions set forth herein, the Company may request the issuance of Letters of
Credit denominated in Agreed Currencies as the applicant thereof for the
support of its or its Subsidiaries’ obligations, in a form reasonably
acceptable to the Administrative Agent and the relevant Issuing Bank, at any
time and from time to time during the Availability Period. Notwithstanding the
foregoing, the letters of credit identified on Schedule 2.06 (the “Existing
Letters of Credit”) shall be deemed to be “Letters of Credit” issued on the
Effective Date for all purposes of the Loan Documents. In the event of any
inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of
letter of credit application or other agreement submitted by the Company to, or
entered into by the Company with, the relevant Issuing Bank relating to any
Letter of Credit, the terms and conditions of this Agreement shall control;
provided, however, if such Issuing Bank is requested to issue Letters of Credit
with respect to a jurisdiction such Issuing Bank deems, in its reasonable
judgment, may at any time subject it to a New Money Credit Event or a Country
Risk Event, the Company shall, at the request of such Issuing Bank, guaranty
and indemnify such Issuing Bank against any and all costs, liabilities and
losses resulting from such New Money Credit Event or Country Risk Event, in
each case in a form and substance reasonably satisfactory to such Issuing Bank.
The Company unconditionally and irrevocably agrees that, in connection with any
Letter of Credit issued for the support of any Subsidiary’s obligations as
provided in the first sentence of this paragraph, the Company will be fully
responsible for the reimbursement of LC Disbursements in accordance with the
terms hereof, the payment of interest thereon and the payment of fees due under
Section 2.12(b) to the same extent as if it were the sole account party in
respect of such Letter of Credit (the Company hereby irrevocably waiving any
defenses that might otherwise be available 

24

to it as a guarantor or surety of the obligations of such a Subsidiary
that is an account party in respect of any such Letter of Credit). 

                    
(b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions.
To request the issuance of a Letter of Credit (or the amendment, renewal or
extension of an outstanding Letter of Credit), the Company shall hand deliver
or telecopy (or transmit by electronic communication, if arrangements for doing
so have been approved by the relevant Issuing Bank) to an Issuing Bank and the
Administrative Agent (reasonably in advance of the requested date of issuance,
amendment, renewal or extension) a notice requesting the issuance of a Letter
of Credit, or identifying the Letter of Credit to be amended, renewed or
extended, and specifying the date of issuance, amendment, renewal or extension
(which shall be a Business Day), the date on which such Letter of Credit is to
expire (which shall comply with paragraph (c) of this Section), the amount of
such Letter of Credit, the Agreed Currency applicable thereto, the name and
address of the beneficiary thereof and such other information as shall be
necessary to prepare, amend, renew or extend such Letter of Credit. If
requested by such Issuing Bank, the Company also shall submit a letter of
credit application on such Issuing Bank’s standard form in connection with any
request for a Letter of Credit. A Letter of Credit shall be issued, amended,
renewed or extended only if (and upon issuance, amendment, renewal or extension
of each Letter of Credit the Company shall be deemed to represent and warrant
that), after giving effect to such issuance, amendment, renewal or extension
(i) subject to Sections 2.04 and 2.11(b), the sum of the Dollar Amount of the
total Revolving Credit Exposures shall not exceed the Aggregate Commitment and
(ii) subject to Sections 2.04 and 2.11(b), the sum of the Dollar Amount of the
total outstanding Revolving Loans and LC Exposure, in each case in respect of
the Foreign Subsidiary Borrowers, shall not exceed the Foreign Subsidiary Borrower
Sublimit. 

                    (c)
Expiration Date. Each Letter of Credit shall expire (or be subject to
termination by notice from the relevant Issuing Bank to the beneficiary
thereof) at or prior to the close of business on the earlier of (i) the date
two years after the date of the issuance of such Letter of Credit (or, in the
case of any renewal or extension thereof, one year after such renewal or
extension) and (ii) the date that is five (5) Business Days prior to the
Maturity Date. 

                    (d)
Participations. By the issuance of a Letter of Credit (or an amendment
to a Letter of Credit increasing the amount thereof) and without any further
action on the part of any Issuing Bank or the Lenders, each Issuing Bank hereby
grants to each Lender, and each Lender hereby acquires from each Issuing Bank,
a participation in such Letter of Credit equal to such Lender’s Applicable
Percentage of the aggregate amount available to be drawn under such Letter of
Credit. In consideration and in furtherance of the foregoing, each Lender
hereby absolutely and unconditionally agrees to pay to the Administrative
Agent, for the account of the relevant Issuing Bank, such Lender’s Applicable
Percentage of each LC Disbursement made by such Issuing Bank and not reimbursed
by the Company on the date due as provided in paragraph (e) of this Section, or
of any reimbursement payment required to be refunded to the Company for any
reason. 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 Commitments, and that each such payment shall be made
without any offset, abatement, withholding or reduction whatsoever. 

                    (e) Reimbursement.
If any Issuing Bank shall make any LC Disbursement in respect of a Letter of
Credit, the Company shall reimburse such LC Disbursement by paying to the
Administrative Agent in Dollars the Dollar Amount equal to such LC
Disbursement, calculated as of the date such Issuing Bank made such LC
Disbursement (or if such Issuing Bank shall so elect in its sole discretion by
notice to the Company, in such other Agreed Currency which was paid by such
Issuing Bank pursuant to 

25

such LC Disbursement in an amount equal to such LC Disbursement) not
later than 12:00 noon, Local Time, on the date that such LC Disbursement is
made, if the Company shall have received notice of such LC Disbursement prior
to 10:00 a.m., Local Time, on such date, or, if such notice has not been
received by the Company prior to such time on such date, then not later than
12:00 noon, Local Time, on (i) the Business Day that the Company receives such
notice, if such notice is received prior to 10:00 a.m., Local Time, on the day
of receipt, or (ii) the Business Day immediately following the day that the
Company receives such notice, if such notice is not received prior to such time
on the day of receipt; provided that, if such LC Disbursement is not
less than the Dollar Amount of $1,000,000, the Company may, subject to the
conditions to borrowing set forth herein, request in accordance with Section
2.03 or 2.05 that such payment be financed with (i) to the extent such LC
Disbursement was made in Dollars, an ABR Revolving Borrowing, Eurocurrency
Revolving Borrowing or Swingline Loan in Dollars in an amount equal to such LC
Disbursement or (ii) to the extent that such LC Disbursement was made in a
Foreign Currency, a Eurocurrency Revolving Borrowing in such Foreign Currency
in an amount equal to such LC Disbursement and, in each case, to the extent so
financed, the Company’s obligation to make such payment shall be discharged and
replaced by the resulting ABR Revolving Borrowing, Eurocurrency Revolving
Borrowing or Swingline Loan, as applicable. If the Company fails to make such
payment when due, the Administrative Agent shall notify each Lender of the
applicable LC Disbursement, the payment then due from the Company in respect
thereof and such Lender’s Applicable Percentage thereof. Promptly following
receipt of such notice, each Lender shall pay to the Administrative Agent its
Applicable Percentage of the payment then due from the Company, in the same
manner as provided in Section 2.07 with respect to Loans made by such Lender
(and Section 2.07 shall apply, mutatis mutandis, to the payment
obligations of the Lenders), and the Administrative Agent shall promptly pay to
such Issuing Bank the amounts so received by it from the Lenders. Promptly
following receipt by the Administrative Agent of any payment from the Company
pursuant to this paragraph, the Administrative Agent shall distribute such
payment to the relevant Issuing Bank or, to the extent that Lenders have made
payments pursuant to this paragraph to reimburse such Issuing Bank, then to
such Lenders and such Issuing Bank as their interests may appear. Any payment
made by a Lender pursuant to this paragraph to reimburse an Issuing Bank for
any LC Disbursement (other than the funding of ABR Revolving Loans or a
Swingline Loan as contemplated above) shall not constitute a Loan and shall not
relieve the Company of its obligation to reimburse such LC Disbursement. If the
Company’s reimbursement of, or obligation to reimburse, any amounts in any
Foreign Currency would subject the Administrative Agent, the relevant Issuing
Bank or any Lender to any stamp duty, ad valorem charge or similar tax that
would not be payable if such reimbursement were made or required to be made in
Dollars, the Company shall, at its option, either (x) pay the amount of any
such tax requested by the Administrative Agent, the relevant Issuing Bank or
the relevant Lender or (y) reimburse each LC Disbursement made in such Foreign
Currency in Dollars, in an amount equal to the Equivalent Amount, calculated
using the applicable Exchange Rates, on the date such LC Disbursement is made,
of such LC Disbursement. 

                    (f)
Obligations Absolute. The Company’s obligation to reimburse LC
Disbursements as provided in paragraph (e) of this Section shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement under any and all circumstances whatsoever and
irrespective of (i) any lack of validity or enforceability of any Letter of
Credit or this Agreement, or any term or provision therein, (ii) any draft or
other document presented under a Letter of Credit proving to be forged,
fraudulent or invalid in any respect or any statement therein being untrue or
inaccurate in any respect, (iii) payment by an Issuing Bank under a Letter of
Credit against presentation of a draft or other document that does not comply
with the terms of such Letter of Credit, or (iv) any other event or
circumstance whatsoever, whether or not similar to any of the foregoing, that
might, but for the provisions of this Section, constitute a legal or equitable
discharge of, or provide a right of setoff against, the Company’s obligations
hereunder. Neither the Administrative Agent, the Lenders nor any Issuing Bank,
nor any of their Related Parties, shall have any liability or responsibility by
reason of or in connection with the issuance or transfer of any Letter of
Credit or any payment or failure to make any 

26

payment thereunder (irrespective of any of the circumstances referred
to in the preceding sentence), or any error, omission, interruption, loss or
delay in transmission or delivery of any draft, notice or other communication
under or relating to any Letter of Credit (including any document required to
make a drawing thereunder), any error in interpretation of technical terms or
any consequence arising from causes beyond the control of the relevant Issuing
Bank; provided that the foregoing shall not be construed to excuse any
Issuing Bank from liability to the Company to the extent of any direct damages
(as opposed to special, indirect, consequential or punitive damages, claims in
respect of which are hereby waived by the Company to the extent permitted by
applicable law) suffered by the Company that are caused by such Issuing Bank’s
failure to exercise care when determining whether drafts and other documents
presented under a Letter of Credit comply with the terms thereof. The parties
hereto expressly agree that, in the absence of gross negligence or willful
misconduct on the part of any Issuing Bank (as finally determined by a court of
competent jurisdiction), such Issuing Bank shall be deemed to have exercised
care in each such determination. In furtherance of the foregoing and without
limiting the generality thereof, the parties agree that, with respect to
documents presented which appear on their face to be in substantial compliance
with the terms of a Letter of Credit, each Issuing Bank may, in its sole
discretion, either accept and make payment upon such documents without
responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and make payment upon such
documents if such documents are not in strict compliance with the terms of such
Letter of Credit. 

                    (g)
Disbursement Procedures. Each Issuing Bank shall, promptly following its
receipt thereof, examine all documents purporting to represent a demand for
payment under a Letter of Credit. Each Issuing Bank shall promptly notify the
Administrative Agent and the Company by telephone (confirmed by telecopy) of
such demand for payment and whether such Issuing Bank has made or will make an
LC Disbursement thereunder; provided that any failure to give or delay
in giving such notice shall not relieve the Company of its obligation to
reimburse such Issuing Bank and the Lenders with respect to any such LC
Disbursement. 

                    (h)
Interim Interest. If any Issuing Bank shall make any LC Disbursement,
then, unless the Company shall reimburse such LC Disbursement in full on the
date such LC Disbursement is made, the unpaid amount thereof shall bear
interest, for each day from and including the date such LC Disbursement is made
to but excluding the date that the Company reimburses such LC Disbursement, at
the rate per annum then applicable to ABR Revolving Loans (or in the case such
LC Disbursement is denominated in a Foreign Currency, at the Overnight Foreign
Currency Rate for such Agreed Currency plus the then effective Applicable Rate
with respect to Eurocurrency Revolving Loans); provided that, if the
Company fails to reimburse such LC Disbursement when due pursuant to paragraph
(e) of this Section, then Section 2.13(c) shall apply. Interest accrued
pursuant to this paragraph shall be for the account of such Issuing Bank,
except that interest accrued on and after the date of payment by any Lender
pursuant to paragraph (e) of this Section to reimburse such Issuing Bank shall
be for the account of such Lender to the extent of such payment. 

                    (i)
Replacement of an Issuing Bank. Any Issuing Bank may be replaced at any
time by written agreement among the Company, the Administrative Agent, the
replaced Issuing Bank and the successor Issuing Bank. The Administrative Agent
shall notify the Lenders of any such replacement of an Issuing Bank. At the
time any such replacement shall become effective, the Company shall pay all
unpaid fees accrued for the account of the replaced Issuing Bank pursuant to
Section 2.12(b). From and after the effective date of any such replacement, (i)
the successor Issuing Bank shall have all the rights and obligations of an
Issuing Bank under this Agreement with respect to Letters of Credit to be
issued thereafter and (ii) references herein to the term “Issuing Bank” shall
be deemed to refer to such successor or to any previous Issuing Bank, or to
such successor and all previous Issuing Banks, as the context shall require.
After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank
shall remain a party hereto and shall continue to have all the rights and
obligations of an Issuing Bank under this

27

Agreement with respect to Letters of Credit then outstanding and issued
by it prior to such replacement, but shall not be required to issue additional
Letters of Credit. 

                    (j)
Cash Collateralization. If any Event of Default shall occur and be
continuing, on the Business Day that the Company receives notice from the
Administrative Agent or the Required Lenders (or, if the maturity of the Loans
has been accelerated, Lenders with LC Exposure representing greater than 50% of
the total LC Exposure) demanding the deposit of cash collateral pursuant to
this paragraph, the Company shall deposit in an account with the Administrative
Agent, in the name of the Administrative Agent and for the benefit of the
Lenders, an amount in cash equal to 105% of the Dollar Amount of the LC
Exposure as of such date plus any accrued and unpaid interest thereon; provided
that (i) the portions of such amount attributable to undrawn Foreign Currency
Letters of Credit or LC Disbursements in a Foreign Currency that the Company is
not late in reimbursing shall be deposited in the applicable Foreign Currencies
in the actual amounts of such undrawn Letters of Credit and LC Disbursements
and (ii) the obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due and payable, without
demand or other notice of any kind, upon the occurrence of any Event of Default
with respect to the Company described in clause (h) or (i) of Article VII. For
the purposes of this paragraph, the Foreign Currency LC Exposure shall be
calculated using the applicable Exchange Rate on the date notice demanding cash
collateralization is delivered to the Company. The Company also shall deposit
cash collateral pursuant to this paragraph as and to the extent required by
Section 2.11(b). Such deposit shall be held by the Administrative Agent as
collateral for the payment and performance of the Obligations. The
Administrative Agent shall have exclusive dominion and control, including the
exclusive right of withdrawal, over such account. Other than any interest
earned on the investment of such deposits, which investments shall be made at
the option and sole discretion of the Administrative Agent and at the Company’s
risk and expense, such deposits shall not bear interest. Interest or profits,
if any, on such investments shall accumulate in such account. Moneys in such
account shall be applied by the Administrative Agent to reimburse the relevant
Issuing Bank for LC Disbursements for which it has not been reimbursed and, to
the extent not so applied, shall be held for the satisfaction of the
reimbursement obligations of the Company for the LC Exposure at such time or,
if the maturity of the Loans has been accelerated (but subject to the consent of
Lenders with LC Exposure representing greater than 50% of the total LC
Exposure), be applied to satisfy other Obligations. If the Company is required
to provide an amount of cash collateral hereunder as a result of the occurrence
of an Event of Default, such amount (to the extent not applied as aforesaid)
shall be returned to the Company within three (3) Business Days after all
Events of Default have been cured or waived. 

                    (k)
Conversion. In the event that the Loans become immediately due and
payable on any date pursuant to Article VII, all amounts (i) that the Company
is at the time or thereafter becomes required to reimburse or otherwise pay to
the Administrative Agent in respect of LC Disbursements made under any Foreign
Currency Letter of Credit (other than amounts in respect of which the Company
has deposited cash collateral pursuant to paragraph (j) above, if such cash
collateral was deposited in the applicable Foreign Currency to the extent so
deposited or applied), (ii) that the Lenders are at the time or thereafter
become required to pay to the Administrative Agent and the Administrative Agent
is at the time or thereafter becomes required to distribute to the relevant
Issuing Bank pursuant to paragraph (e) of this Section in respect of
unreimbursed LC Disbursements made under any Foreign Currency Letter of Credit
and (iii) of each Lender’s participation in any Foreign Currency Letter of
Credit under which an LC Disbursement has been made shall, automatically and
with no further action required, be converted into the Dollar Amount,
calculated using the Administrative Agent’s currency exchange rates on such
date (or in the case of any LC Disbursement made after such date, on the date
such LC Disbursement is made), of such amounts. On and after such conversion,
all amounts accruing and owed to the Administrative Agent, any Issuing Bank or
any Lender in respect of the obligations described in this paragraph shall
accrue and be payable in Dollars at the rates otherwise applicable hereunder. 

28

                    (l)
Issuing Bank Agreements. Each Issuing Bank agrees that, unless otherwise
requested by the Administrative Agent, such Issuing Bank shall report in
writing to the Administrative Agent (i) on the first Business Day of each week,
the daily activity (set forth by day) in respect of Letters of Credit during
the immediately preceding week, including all issuances, extensions, amendments
and renewals, all expirations and cancellations and all disbursements and
reimbursements, (ii) on or prior to each Business Day on which such Issuing
Bank expects to issue, amend, renew or extend any Letter of Credit, the date of
such issuance, amendment, renewal or extension, and the aggregate face amount
of the Letters of Credit to be issued, amended, renewed or extended by it and
outstanding after giving effect to such issuance, amendment, renewal or
extension occurred (and whether the amount thereof changed), it being
understood that such Issuing Bank shall not permit any issuance, renewal, extension
or amendment resulting in an increase in the amount of any Letter of Credit to
occur without first obtaining written confirmation from the Administrative
Agent that it is then permitted under this Agreement, (iii) on each Business
Day on which such Issuing Bank makes any LC Disbursement, the date of such LC
Disbursement and the amount of such LC Disbursement, (iv) on any Business Day
on which any Borrower fails to reimburse an LC Disbursement required to be
reimbursed to such Issuing Bank on such day, the date of such failure and the
amount and currency of such LC Disbursement and (v) on any other Business Day,
such other information as the Administrative Agent shall reasonably request. 

                    SECTION
2.07. Funding of Borrowings. (a) Each Lender shall make each Loan to be made by it hereunder on
the proposed date thereof by wire transfer of immediately available funds (i)
in the case of Loans denominated in Dollars, by 12:00 noon, Chicago time, to
the account of the Administrative Agent most recently designated by it for such
purpose by notice to the Lenders and (ii) in the case of each Loan denominated
in a Foreign Currency, by 12:00 noon, Local Time, in the city of the
Administrative Agent’s Eurocurrency Payment Office for such currency and at
such Eurocurrency Payment Office for such currency; provided that
Swingline Loans shall be made as provided in Section 2.05. The Administrative
Agent will make such Loans available to the relevant Borrower by promptly
crediting the amounts so received, in like funds, to (x) an account of the
Company maintained with the Administrative Agent in New York City or Chicago
and designated by the Company in the applicable Borrowing Request, in the case
of Loans denominated in Dollars and (y) an account of such Borrower in the
relevant jurisdiction and designated by such Borrower in the applicable
Borrowing Request, in the case of Loans denominated in a Foreign Currency; provided
that ABR Revolving Loans made to finance the reimbursement of an LC
Disbursement as provided in Section 2.06(e) shall be remitted by the
Administrative Agent to the relevant Issuing Bank. 

                    (b)
Unless the Administrative Agent shall have received notice from a Lender prior
to the proposed date of any Borrowing that such Lender will not make available
to the Administrative Agent such Lender’s share of such Borrowing, the
Administrative Agent may assume that such Lender has made such share available
on such date in accordance with paragraph (a) of this Section and may, in reliance
upon such assumption, make available to the relevant Borrower a corresponding
amount. In such event, if a Lender has not in fact made its share of the
applicable Borrowing available to the Administrative Agent, then the applicable
Lender and such Borrower severally agree to pay to the Administrative Agent
forthwith on demand such corresponding amount with interest thereon, for each
day from and including the date such amount is made available to such Borrower
to but excluding the date of payment to the Administrative Agent, at (i) in the
case of such Lender, the greater of the Federal Funds Effective Rate and a rate
determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation (including without limitation the Overnight
Foreign Currency Rate in the case of Loans denominated in a Foreign Currency)
or (ii) in the case of such Borrower, the interest rate applicable to ABR
Loans. If such Lender pays such amount to the Administrative Agent, then such
amount shall constitute such Lender’s Loan included in such Borrowing. 

29

                    SECTION
2.08. Interest Elections. (a) Each Revolving Borrowing initially shall
be of the Type specified in the applicable Borrowing Request and, in the case
of a Eurocurrency Revolving Borrowing, shall have an initial Interest Period as
specified in such Borrowing Request. Thereafter, the relevant Borrower may
elect to convert such Borrowing to a different Type or to continue such
Borrowing and, in the case of a Eurocurrency Revolving Borrowing, may elect
Interest Periods therefor, all as provided in this Section. A Borrower may
elect different options with respect to different portions of the affected
Borrowing, in which case each such portion shall be allocated ratably among the
Lenders holding the Loans comprising such Borrowing, and the Loans comprising
each such portion shall be considered a separate Borrowing. This Section shall
not apply to Swingline Borrowings, which may not be converted or continued. 

                    (b)
To make an election pursuant to this Section, a Borrower, or the Company on its
behalf, shall notify the Administrative Agent of such election (by telephone or
irrevocable written notice in the case of a Borrowing denominated in Dollars or
by irrevocable written notice (via an Interest Election Request signed by such
Borrower, or the Company on its behalf) in the case of a Borrowing denominated
in a Foreign Currency) by the time that a Borrowing Request would be required
under Section 2.03 if such Borrower were requesting a Revolving Borrowing of
the Type resulting from such election to be made on the effective date of such
election. Each such telephonic Interest Election Request shall be irrevocable
and shall be confirmed promptly by hand delivery or telecopy to the
Administrative Agent of a written Interest Election Request signed by the
relevant Borrower, or the Company on its behalf. Notwithstanding any contrary
provision herein, this Section shall not be construed to permit any Borrower to
(i) change the currency of any Borrowing, (ii) elect an Interest Period for
Eurocurrency Loans that does not comply with Section 2.02(d) or (iii) convert
any Borrowing to a Borrowing of a Type not available under such Borrowing. 

                    (c)
Each telephonic and written Interest Election Request shall specify the
following information in compliance with Section 2.02: 

	
  

 	
  

 
	
  

 	
           (i) the
 Borrowing to which such Interest Election Request applies and, if different
 options are being elected with respect to different portions thereof, the
 portions thereof to be allocated to each resulting Borrowing (in which case
 the information to be specified pursuant to clauses (iii) and (iv) below
 shall be specified for each resulting Borrowing); 

 
	
  

 	
  

 
	
  

 	
           (ii) the
 effective date of the election made pursuant to such Interest Election
 Request, which shall be a Business Day; 

 
	
  

 	
  

 
	
  

 	
           (iii)
 whether the resulting Borrowing is to be an ABR Borrowing or a Eurocurrency
 Borrowing; and 

 
	
  

 	
  

 
	
  

 	
           (iv) if the
 resulting Borrowing is a Eurocurrency Borrowing, the Interest Period and
 Agreed Currency to be applicable thereto after giving effect to such
 election, which Interest Period shall be a period contemplated by the
 definition of the term “Interest Period”. 

 

If any such Interest
Election Request requests a Eurocurrency Borrowing but does not specify an
Interest Period, then the applicable Borrower shall be deemed to have selected
an Interest Period of one month’s duration. 

                    (d) Promptly following receipt of an Interest Election Request, the
Administrative Agent shall advise each Lender of the details thereof and of
such Lender’s portion of each resulting Borrowing. 

30

                    (e)
If the relevant Borrower, or the Company on its behalf, fails to deliver a
timely Interest Election Request with respect to a Eurocurrency Revolving
Borrowing prior to the end of the Interest Period applicable thereto, then,
unless such Borrowing is repaid as provided herein, at the end of such Interest
Period (i) in the case of a Borrowing denominated in Dollars, such Borrowing
shall be converted to an ABR Borrowing and (ii) in the case of a Borrowing
denominated in a Foreign Currency in respect of which the applicable Borrower,
or the Company on its behalf, shall have failed to deliver an Interest Election
Request prior to the third (3rd) Business Day preceding the end of
such Interest Period, such Borrowing shall automatically continue as a
Eurocurrency Borrowing in the same Agreed Currency with an Interest Period of one
month unless such Eurocurrency Borrowing is or was repaid in accordance with
Section 2.11. Notwithstanding any contrary provision hereof, if an Event of
Default has occurred and is continuing and the Administrative Agent, at the
request of the Required Lenders, so notifies the Company, then, so long as an
Event of Default is continuing (i) no outstanding Revolving Borrowing
denominated in Dollars may be converted to or continued as a Eurocurrency
Borrowing, (ii) unless repaid, each Eurocurrency Revolving Borrowing
denominated in Dollars shall be converted to an ABR Borrowing at the end of the
Interest Period applicable thereto and (iii) unless repaid, each Eurocurrency
Revolving Borrowing denominated in a Foreign Currency shall automatically be
continued as a Eurocurrency Borrowing with an Interest Period of one month. 

                    SECTION
2.09. Termination and Reduction of Commitments. (a) Unless previously
terminated, the Commitments shall terminate on the Maturity Date. 

                    (b)
The Company may at any time terminate, or from time to time reduce, the
Commitments; provided that (i) each reduction of the Commitments shall
be in an amount that is an integral multiple of $1,000,000 and not less than
$5,000,000 and (ii) the Company shall not terminate or reduce the Commitments
if, after giving effect to any concurrent prepayment of the Loans in accordance
with Section 2.11, the Dollar Amount of the sum of the Revolving Credit
Exposures would exceed the Aggregate Commitment. 

                    (c)
The Company shall notify the Administrative Agent of any election to terminate
or reduce the Commitments under paragraph (b) of this Section at least three
Business Days prior to the effective date of such termination or reduction,
specifying such election and the effective date thereof. Promptly following
receipt of any notice, the Administrative Agent shall advise the Lenders of the
contents thereof. Each notice delivered by the Company pursuant to this Section
shall be irrevocable; provided that a notice of termination of the
Commitments delivered by the Company may state that such notice is conditioned
upon the effectiveness of other credit facilities, in which case such notice
may be revoked by the Company (by notice to the Administrative Agent on or
prior to the specified effective date) if such condition is not satisfied. Any
termination or reduction of the Commitments shall be permanent. Each reduction
of the Commitments shall be made ratably among the Lenders in accordance with
their respective Commitments. 

                    SECTION
2.10. Repayment of Loans; Evidence of Debt. (a) Each Borrower hereby
unconditionally promises to pay (i) to the Administrative Agent for the account
of each Lender the then unpaid principal amount of each Revolving Loan made to
such Borrower on the Maturity Date in the currency of such Loan and (ii) in the
case of the Company, to the Swingline Lender the then unpaid principal amount
of each Swingline Loan on the earlier of the Maturity Date and the first date
after such Swingline Loan is made that is the 15th or last day of a
calendar month and is at least two Business Days after such Swingline Loan is
made; provided that on each date that a Revolving Borrowing is made, the
Company shall repay all Swingline Loans then outstanding. 

                    (b)
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 Loan made by 

31

such Lender, including the amounts of principal and interest payable
and paid to such Lender from time to time hereunder. 

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

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

                    (e)
Any Lender may request that Loans made by it to any Borrower be evidenced by a
promissory note. In such event, the relevant Borrower shall prepare, execute
and deliver to such Lender a promissory note payable to the order of such
Lender (or, if requested by such Lender, to such Lender and its registered
assigns) and in the form attached hereto as Exhibit K. Thereafter, the
Loans evidenced by such promissory note and interest thereon shall at all times
(including after assignment pursuant to Section 9.04) be represented by one or
more promissory notes in such form payable to the order of the payee named
therein (or, if such promissory note is a registered note, to such payee and
its registered assigns). 

                    SECTION
2.11. Prepayment of Loans. 

                    (a)
Any Borrower shall have the right at any time and from time to time to prepay
any Borrowing in whole or in part, subject to prior notice in accordance with
the provisions of this Section 2.11(a). The applicable Borrower, or the Company
on behalf of the applicable Borrower, shall notify the Administrative Agent
(and, in the case of prepayment of a Swingline Loan, the Swingline Lender) by
telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case
of prepayment of a Eurocurrency Revolving Borrowing, not later than 11:00 a.m.,
Local Time, three (3) Business Days (in the case of a Eurocurrency Borrowing
denominated in Dollars) or four (4) Business Days (in the case of a
Eurocurrency Borrowing denominated in a Foreign Currency), in each case before
the date of prepayment, (ii) in the case of prepayment of an ABR Revolving
Borrowing, not later than 11:00 a.m., Chicago time, one (1) Business Day before
the date of prepayment or (iii) in the case of prepayment of a Swingline Loan,
not later than 12:00 noon, Chicago time, on the date of prepayment. Each such
notice shall be irrevocable and shall specify the prepayment date and the
principal amount of each Borrowing or portion thereof to be prepaid; provided
that, if a notice of prepayment is given in connection with a conditional
notice of termination of the Commitments as contemplated by Section 2.09, then
such notice of prepayment may be revoked if such notice of termination is
revoked in accordance with Section 2.09. Promptly following receipt of any such
notice relating to a Revolving Borrowing, the Administrative Agent shall advise
the Lenders of the contents thereof. Each partial prepayment of any Revolving
Borrowing shall be in an amount that would be permitted in the case of an
advance of a Revolving Borrowing of the same Type as provided in Section 2.02.
Each prepayment of a Revolving Borrowing shall be applied ratably to the Loans
included in the prepaid Borrowing. Prepayments shall be accompanied by (i)
accrued interest to the extent required by Section 2.13 and (ii) break funding
payments pursuant to Section 2.16. 

                    (b)
If at any time, (i) other than as a result of fluctuations in currency exchange
rates, (A) the sum of the aggregate principal Dollar Amount of all of the
Revolving Credit Exposures (calculated, 

32

with respect to those Credit Events denominated in Foreign Currencies,
as of the most recent Computation Date with respect to each such Credit Event)
exceeds the Aggregate Commitment or (B) such sum in respect of Foreign
Subsidiary Borrowers (collectively, “Foreign Subsidiary Borrower Exposure”)
exceeds the Foreign Subsidiary Borrower Sublimit or (ii) solely as a result of
fluctuations in currency exchange rates, (A) the sum of the aggregate principal
Dollar Amount of all of the Revolving Credit Exposures (calculated, with
respect to those Credit Events denominated in Foreign Currencies, as of the
most recent Computation Date with respect to each such Credit Event) exceeds
105% of the Aggregate Commitment or (B) the Foreign Subsidiary Borrower
Exposure exceeds 105% of the Foreign Subsidiary Borrower Sublimit, the
Borrowers shall immediately repay Borrowings or cash collateralize LC
Disbursements in an account with the Administrative Agent pursuant to Section
2.06(j), as applicable, in an aggregate principal amount sufficient to cause
(x) the aggregate Dollar Amount of all Revolving Credit Exposures (so calculated)
to be less than or equal to the Aggregate Commitment and (y) the Foreign
Subsidiary Borrower Exposure to be less than or equal to the Foreign Subsidiary
Borrower Sublimit, as applicable. 

                    SECTION
2.12. Fees. (a) The Company agrees to pay to the Administrative Agent
for the account of each Lender a commitment fee, which shall accrue at the
Applicable Rate on the average daily amount of the Available Revolving
Commitment of such Lender during the period from and including the Effective
Date to but excluding the date on which such Commitment terminates; provided
that, if such Lender continues to have any Revolving Credit Exposure after its
Commitment terminates, then such commitment fee shall continue to accrue on the
daily amount of such Lender’s Revolving Credit Exposure from and including the
date on which its Commitment terminates to but excluding the date on which such
Lender ceases to have any Revolving Credit Exposure. Accrued commitment fees
shall be payable in arrears on the last day of March, June, September and
December of each year and on the date on which the Commitments terminate,
commencing on the first such date to occur after the date hereof; provided that
any commitment fees accruing after the date on which the Commitments terminate
shall be payable on demand. All commitment fees shall be computed on the basis
of a year of 360 days and shall be payable for the actual number of days
elapsed (including the first day but excluding the last day). For purposes of
computing commitment fees, the Commitment of a Lender shall be deemed to be
used to the extent of the outstanding Revolving Loans and LC Exposure of such
Lender. 

                    (b)
The Company agrees to pay (i) to the Administrative Agent for the account of
each Lender a participation fee with respect to its participations in Letters
of Credit, which shall accrue, in the case of commercial or performance Letters
of Credit, at the Applicable Rate and, in the case of standby Letters of
Credit, at the same Applicable Rate used to determine the interest rate
applicable to Eurocurrency Revolving Loans on the average daily Dollar Amount
of such Lender’s LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the
Effective Date to but excluding the later of the date on which such Lender’s
Commitment terminates and the date on which such Lender ceases to have any LC
Exposure, and (ii) to the relevant Issuing Bank a fronting fee, which shall
accrue at the rate of 0.125% per annum on the average daily Dollar Amount of
the LC Exposure (excluding any portion thereof attributable to unreimbursed LC
Disbursements) attributable to Letters of Credit issued by such Issuing Bank
during the period from and including the Effective Date to but excluding the
later of the date of termination of the Commitments and the date on which there
ceases to be any LC Exposure, as well as such Issuing Bank’s standard fees and
commissions (including, without limitation, standard commissions with respect
to commercial or performance Letters of Credit, payable at the time of invoice
of such amounts) with respect to the issuance, amendment, cancellation,
negotiation, transfer, presentment, renewal or extension of any Letter of
Credit or processing of drawings thereunder. Participation fees and fronting
fees accrued through and including the last day of March, June, September and
December of each year shall be payable on the third (3rd) Business
Day following such last day, commencing on the first such date to occur after
the Effective Date; provided that all such fees shall be payable on the
date on which the 

33

Commitments terminate and any such fees accruing after the date on
which the Commitments terminate shall be payable on demand. Any other fees
payable to any Issuing Bank pursuant to this paragraph shall be payable within
ten (10) days after demand. All participation fees and fronting fees shall be
computed on the basis of a year of 360 days and shall be payable for the actual
number of days elapsed (including the first day but excluding the last day).
Participation fees and fronting fees in respect of Letters of Credit
denominated in Dollars shall be paid in Dollars, and participation fees and
fronting fees in respect of Letters of Credit denominated in a Foreign Currency
shall be paid in such Foreign Currency. 

                    (c)
The Company agrees to pay to the Administrative Agent, for its own account,
fees payable in the amounts and at the times separately agreed upon between the
Company and the Administrative Agent. 

                    (d)
All fees payable hereunder shall be paid on the dates due, in Dollars (except
as otherwise expressly provided in this Section 2.12) and immediately available
funds, to the Administrative Agent (or to the relevant Issuing Bank, in the
case of fees payable to it) for distribution, in the case of commitment fees
and participation fees, to the Lenders. Fees paid shall not be refundable under
any circumstances. 

                    SECTION
2.13. Interest. (a) The Loans comprising each ABR Borrowing (including
each Swingline Loan) shall bear interest at the Alternate Base Rate plus the
Applicable Rate.  

                    (b)
The Loans comprising each Eurocurrency Borrowing shall bear interest at the
Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.  

                    (c)
Notwithstanding the foregoing, if any principal of or interest on any Loan or
any fee or other amount payable by any Borrower hereunder is not paid when due,
whether at stated maturity, upon acceleration or otherwise, such overdue amount
shall bear interest, after as well as before judgment, at a rate per annum
equal to (i) in the case of overdue principal of any Loan, 2% plus the rate
otherwise applicable to such Loan as provided in the preceding paragraphs of
this Section or (ii) in the case of any other amount, 2% plus the rate
applicable to ABR Loans as provided in paragraph (a) of this Section. 

                    (d)
Accrued interest on each Loan shall be payable in arrears on each Interest
Payment Date for such Loan and, in the case of Revolving Loans, upon
termination of the Commitments; provided that (i) interest accrued
pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in
the event of any repayment or prepayment of any Loan (other than a prepayment
of an ABR Revolving Loan prior to the end of the Availability Period), accrued
interest on the principal amount repaid or prepaid shall be payable on the date
of such repayment or prepayment and (iii) in the event of any conversion of any
Eurocurrency Revolving Loan prior to the end of the current Interest Period
therefor, accrued interest on such Loan shall be payable on the effective date
of such conversion. 

                    (e)
All interest hereunder shall be computed on the basis of a year of 360 days,
except that interest (i) computed by reference to the Alternate Base Rate at
times when the Alternate Base Rate is based on the Prime Rate shall be computed
on the basis of a year of 365 days (or 366 days in a leap year) and (ii) for
Borrowings denominated in Pounds Sterling shall be computed on the basis of a
year of 365 days, and in each case shall be payable for the actual number of
days elapsed (including the first day but excluding the last day). The
applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO Rate shall be
determined by the Administrative Agent, and such determination shall be
conclusive absent manifest error. 

                    SECTION
2.14. Alternate Rate of Interest. If prior to the commencement of any
Interest Period for a Eurocurrency Borrowing: 

34

	
  

 	
  

 
	
  

 	
           (a) the
 Administrative Agent determines (which determination shall be conclusive
 absent manifest error) that adequate and reasonable means do not exist for
 ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such
 Interest Period; or 

 
	
  

 	
  

 
	
  

 	
           (b) the
 Administrative Agent is advised by the Required Lenders that the Adjusted
 LIBO Rate or the LIBO Rate, as applicable, for such Interest Period will not
 adequately and fairly reflect the cost to such Lenders (or Lender) of making
 or maintaining their Loans (or its Loan) included in such Borrowing for such
 Interest Period; 

 

then the Administrative Agent shall give notice thereof to the
applicable Borrower and the Lenders by telephone or telecopy as promptly as
practicable thereafter and, until the Administrative Agent notifies the
applicable Borrower and the Lenders that the circumstances giving rise to such
notice no longer exist, (i) any Interest Election Request that requests the
conversion of any Revolving Borrowing to, or continuation of any Revolving
Borrowing as, a Eurocurrency Borrowing shall be ineffective and, unless repaid,
(A) in the case of a Eurocurrency Borrowing denominated in Dollars, such
Borrowing shall be continued as an ABR Borrowing and (B) in the case of a
Eurocurrency Borrowing denominated in a Foreign Currency, such Eurocurrency
Borrowing shall be repaid on the last day of the then current Interest Period
applicable thereto and (ii) if any Borrowing Request requests a Eurocurrency
Revolving Borrowing in Dollars, such Borrowing shall be made as an ABR
Borrowing (and if any Borrowing Request requests a Eurocurrency Revolving Borrowing
denominated in a Foreign Currency, such Borrowing Request shall be
ineffective); provided that if the circumstances giving rise to such
notice affect only one Type of Borrowings, then the other Type of Borrowings
shall be permitted. 

	
  

 	
  

 
	
  

 	
           SECTION
2.15. Increased Costs. (a) If any Change in Law shall:  

 
	
  

 	
  

 
	
  

 	
           (i)
 impose, modify or deem applicable any reserve, special deposit or similar
 requirement (including any compulsory loan requirement, insurance charge or
 other assessment) against assets of, deposits with or for the account of, or
 credit extended by, any Lender (except any such reserve requirement reflected
 in the Adjusted LIBO Rate) or any Issuing Bank; 

 
	
  

 	
  

 
	
  

 	
           (ii)
 impose on any Lender or any Issuing Bank or the London interbank market any
 other condition, cost or expense (other than Taxes) affecting this Agreement
 or Loans made by such Lender or any Letter of Credit or participation
 therein; or 

 
	
  

 	
  

 
	
  

 	
           (iii)
 subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B)
 Taxes described in clauses (b) through (d) of the definition of Excluded
 Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters
 of credit, commitments, or other obligations, or its deposits, reserves,
 other liabilities or capital attributable thereto; 

 

and the result of any of the foregoing shall be to increase the cost to
such Lender or such other Recipient of making or maintaining any Loan or of
maintaining its obligation to make any such Loan (including, without
limitation, pursuant to any conversion of any Borrowing denominated in an
Agreed Currency into a Borrowing denominated in any other Agreed Currency) or
to increase the cost to such Lender, such Issuing Bank or such other Recipient
of participating in, issuing or maintaining any Letter of Credit (including,
without limitation, pursuant to any conversion of any Borrowing denominated in
an Agreed Currency into a Borrowing denominated in any other Agreed Currency)
or to reduce the amount of any sum received or receivable by such Lender, such
Issuing Bank or such other Recipient hereunder, whether of principal, interest
or otherwise (including, without limitation, pursuant to any conversion of any
Borrowing denominated in an Agreed Currency into a Borrowing denominated in any
other Agreed Currency), then the applicable Borrower will pay to such Lender,
such Issuing Bank or such other Recipient, as the case may be, such additional
amount or amounts as will compensate such Lender, such 

35

Issuing Bank
or such other Recipient, as the case may be, for such additional costs incurred
or reduction suffered. 

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

                    (c)
A certificate of a Lender or an Issuing Bank setting forth the amount or
amounts necessary to compensate such Lender or such Issuing Bank or its holding
company, as the case may be, as specified in paragraph (a) or (b) of this
Section shall be delivered to the Company and shall be conclusive absent
manifest error. The Company shall pay, or cause the other Borrowers to pay,
such Lender or such Issuing Bank, as the case may be, the amount shown as due
on any such certificate within 10 days after receipt thereof. 

                    (d)
Failure or delay on the part of any Lender or any Issuing Bank to demand
compensation pursuant to this Section shall not constitute a waiver of such
Lender’s or such Issuing Bank’s right to demand such compensation; provided
that the Company shall not be required to compensate a Lender or an Issuing
Bank pursuant to this Section for any increased costs or reductions incurred
more than 270 days prior to the date that such Lender or such Issuing Bank, as
the case may be, notifies the Company of the Change in Law giving rise to such
increased costs or reductions and of such Lender’s or such Issuing Bank’s
intention to claim compensation therefor; provided further that, if the
Change in Law giving rise to such increased costs or reductions is retroactive,
then the 270-day period referred to above shall be extended to include the
period of retroactive effect thereof. 

                    SECTION
2.16. Break Funding Payments. In the event of (a) the payment of any
principal of any Eurocurrency Loan other than on the last day of an Interest
Period applicable thereto (including as a result of an Event of Default or as a
result of any prepayment pursuant to Section 2.11), (b) the conversion of any
Eurocurrency Loan other than on the last day of the Interest Period applicable
thereto, (c) the failure to borrow, convert, continue or prepay any
Eurocurrency Loan on the date specified in any notice delivered pursuant hereto
(regardless of whether such notice may be revoked under Section 2.11(a) and is
revoked in accordance therewith) or (d) the assignment of any Eurocurrency Loan
other than on the last day of the Interest Period applicable thereto as a
result of a request by the Company pursuant to Section 2.19, then, in any such
event, the Borrowers shall compensate each Lender for the loss, cost and
expense attributable to such event. Such loss, cost or expense to any Lender
shall be deemed to include an amount determined by such Lender to be the
excess, if any, of (i) the amount of interest which would have accrued on the
principal amount of such Loan had such event not occurred, at the Adjusted LIBO
Rate that would have been applicable to such Loan, for the period from the date
of such event to the last day of the then current Interest Period therefor (or,
in the case of a failure to borrow, convert or continue, for the period that
would have been the Interest Period for such Loan), over (ii) the amount of
interest which would accrue on such principal amount for such period at the
interest rate which such Lender would bid were it to bid, at the commencement
of such period, for deposits in the relevant currency of a comparable amount
and period from other banks in the eurocurrency market. A certificate 

36

of any Lender setting forth any amount or amounts that such Lender is
entitled to receive pursuant to this Section shall be delivered to the
applicable Borrower and shall be conclusive absent manifest error. The
applicable Borrower shall pay such Lender the amount shown as due on any such
certificate within ten (10) days after receipt thereof. 

                    SECTION
2.17. Taxes. (a) Payments Free of Taxes. Any and all payments by
or on account of any obligation of any Loan Party under any Loan Document shall
be made without deduction or withholding for any Taxes, except as required by
applicable law. If any applicable law (as determined in the good faith
discretion of an applicable Withholding Agent) requires the deduction or
withholding of any Tax from any such payment by a Withholding Agent, then the applicable
Withholding Agent shall be entitled to make such deduction or withholding and
shall timely pay the full amount deducted or withheld to the relevant
Governmental Authority in accordance with applicable law and, if such Tax is an
Indemnified Tax, then the sum payable by the applicable Loan Party shall be
increased as necessary so that after such deduction or withholding has been
made (including such deductions and withholdings applicable to additional sums
payable under this Section 2.17) the applicable Recipient receives an amount
equal to the sum it would have received had no such deduction or withholding
been made. 

                    (b)
Payment of Other Taxes by the Borrowers. The relevant Borrower shall
timely pay to the relevant Governmental Authority in accordance with applicable
law, or at the option of the Administrative Agent timely reimburse it for,
Other Taxes. 

                    (c)
Evidence of Payments. As soon as practicable after any payment of Taxes
by any Loan Party to a Governmental Authority pursuant to this Section 2.17,
such Loan Party shall deliver to the Administrative Agent the original or a
certified copy of a receipt issued by such Governmental Authority evidencing
such payment, a copy of the return reporting such payment or other evidence of
such payment reasonably satisfactory to the Administrative Agent. 

                    (d)
Indemnification by the Loan Parties. The Loan Parties shall indemnify
each Recipient, within 10 days after demand therefor, for the full amount of
any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or
attributable to amounts payable under this Section) payable or paid by such
Recipient or required to be withheld or deducted from a payment to such
Recipient and any reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. A certificate as to
the amount of such payment or liability delivered to the relevant Borrower by a
Lender (with a copy to the Administrative Agent), or by the Administrative
Agent on its own behalf or on behalf of a Lender, shall be conclusive absent
manifest error. 

                    (e)
Indemnification by the Lenders. Each Lender shall severally indemnify
the Administrative Agent, within 10 days after demand therefor, for (i) any
Indemnified Taxes attributable to such Lender (but only to the extent that any
Loan Party has not already indemnified the Administrative Agent for such
Indemnified Taxes and without limiting the obligation of the Loan Parties to do
so), (ii) any Taxes attributable to such Lender’s failure to comply with the
provisions of Section 9.04(c) relating to the maintenance of a Participant
Register and (iii) any Excluded Taxes attributable to such Lender, in each
case, that are payable or paid by the Administrative Agent in connection with
any Loan Document, and any reasonable expenses arising therefrom or with
respect thereto, whether or not such Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority. A certificate as to the amount
of such payment or liability delivered to any Lender by the Administrative
Agent shall be conclusive absent manifest error. Each Lender hereby authorizes
the Administrative Agent to set off and apply any and all amounts at any time
owing to such Lender under any Loan Document or otherwise payable by the
Administrative Agent to the Lender from any other source against any amount due
to the Administrative Agent under this paragraph (e). 

37

                    (f)
Status of Lenders. (i) Any Lender that is entitled to an exemption from
or reduction of withholding Tax with respect to payments made under any Loan
Document shall deliver to the Borrowers and the Administrative Agent, at the
time or times reasonably requested by the Borrowers or the Administrative
Agent, such properly completed and executed documentation reasonably requested
by the Borrowers or the Administrative Agent as will permit such payments to be
made without withholding or at a reduced rate of withholding. In addition, any
Lender, if reasonably requested by the Borrowers or the Administrative Agent,
shall deliver such other documentation prescribed by applicable law or
reasonably requested by the Borrowers or the Administrative Agent as will
enable the Borrowers or the Administrative Agent to determine whether or not
such Lender is subject to backup withholding or information reporting
requirements. Notwithstanding anything to the contrary in the preceding two
sentences, the completion, execution and submission of such documentation
(other than such documentation set forth in Section 2.17(f)(ii)(A), (ii)(B) and
(ii)(D) below) shall not be required if in the Lender’s reasonable judgment such
completion, execution or submission would subject such Lender to any material
unreimbursed cost or expense or would materially prejudice the legal or
commercial position of such Lender. 

	
  

 	
  

 
	
  

 	
           (ii)
 Without limiting the generality of the foregoing, in the event that any
 Borrower is a U.S. Person: 

 
	
  

 	
  

 
	
  

 	
           (A) any
 Lender that is a U.S. Person shall deliver to such Borrower and the
 Administrative Agent on or prior to the date on which such Lender becomes a
 Lender under this Agreement (and from time to time thereafter upon the
 reasonable request of such Borrower or the Administrative Agent), executed
 originals of IRS Form W-9 certifying that such Lender is exempt from U.S.
 Federal backup withholding tax; 

 
	
  

 	
  

 
	
  

 	
           (B) any
 Foreign Lender shall, to the extent it is legally entitled to do so, deliver
 to such Borrower and the Administrative Agent (in such number of copies as
 shall be requested by the recipient) on or prior to the date on which such
 Foreign Lender becomes a Lender under this Agreement (and from time to time
 thereafter upon the reasonable request of such Borrower or the Administrative
 Agent), whichever of the following is applicable; 

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (1) in
 the case of a Foreign Lender claiming the benefits of an income tax treaty to
 which the United States is a party (x) with respect to payments of interest
 under any Loan Document, executed originals of IRS Form W-8BEN establishing
 an exemption from, or reduction of, U.S. Federal withholding Tax pursuant to
 the “interest” article of such tax treaty and (y) with respect to any other
 applicable payments under any Loan Document, IRS Form W-8BEN establishing an
 exemption from, or reduction of, U.S. Federal withholding Tax pursuant to the
 “business profits” or “other income” article of such tax treaty; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (2)
 executed originals of IRS Form W-8ECI; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (3) in
 the case of a Foreign Lender claiming the benefits of the exemption for
 portfolio interest under Section 881(c) of the Code, (x) a certificate substantially
 in the form of Exhibit I-1 to the effect that such Foreign Lender is
 not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10
 percent shareholder” of such Borrower within the meaning of Section
 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in
 Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”)
 and (y) executed originals of IRS Form W-8BEN; or 

 

38

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (4) to
 the extent a Foreign Lender is not the beneficial owner, executed originals
 of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, a U.S.
 Tax Compliance Certificate substantially in the form of Exhibit I-2 or
 Exhibit I-3, IRS Form W-9, and/or other certification documents from
 each beneficial owner, as applicable; provided that if the Foreign
 Lender is a partnership and one or more direct or indirect partners of such
 Foreign Lender are claiming the portfolio interest exemption, such Foreign
 Lender may provide a U.S. Tax Compliance Certificate substantially in the
 form of Exhibit I-4 on behalf of each such direct and indirect
 partner; 

 

	
  

 	
  

 
	
  

 	
           (C) any
 Foreign Lender shall, to the extent it is legally entitled to do so, deliver
 to such Borrower and the Administrative Agent (in such number of copies as
 shall be requested by the recipient) on or prior to the date on which such
 Foreign Lender becomes a Lender under this Agreement (and from time to time
 thereafter upon the reasonable request of such Borrower or the Administrative
 Agent), executed originals of any other form prescribed by applicable law as
 a basis for claiming exemption from or a reduction in U.S. Federal
 withholding Tax, duly completed, together with such supplementary
 documentation as may be prescribed by applicable law to permit such Borrower
 or the Administrative Agent to determine the withholding or deduction
 required to be made; and 

 
	
  

 	
  

 
	
  

 	
           (D) if a
 payment made to a Lender under any Loan Document would be subject to U.S.
 Federal withholding Tax imposed by FATCA if such Lender were to fail to
 comply with the applicable reporting requirements of FATCA (including those
 contained in Section 1471(b) or 1472(b) of the Code, as applicable), such
 Lender shall deliver to such Borrower and the Administrative Agent at the
 time or times prescribed by law and at such time or times reasonably
 requested by such Borrower or the Administrative Agent such documentation
 prescribed by applicable law (including as prescribed by Section
 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably
 requested by such Borrower or the Administrative Agent as may be necessary
 for such Borrower and the Administrative Agent to comply with their
 obligations under FATCA and to determine that such Lender has complied with
 such Lender’s obligations under FATCA or to determine the amount to deduct
 and withhold from such payment. Solely for purposes of this clause (D),
 “FATCA” shall include any amendments made to FATCA after the date of this
 Agreement. 

 

          Each Lender
agrees that if any form or certification it previously delivered expires or
becomes obsolete or inaccurate in any respect, it shall update such form or
certification or promptly notify the Company and the Administrative Agent in
writing of its legal inability to do so. 

                    (g)
Treatment of Certain Refunds. If any party determines, in its sole
discretion exercised in good faith, that it has received a refund of any Taxes
as to which it has been indemnified pursuant to this Section 2.17 (including by
the payment of additional amounts pursuant to this Section 2.17), it shall pay
to the indemnifying party an amount equal to such refund (but only to the
extent of indemnity payments made under this Section 2.17 with respect to the
Taxes giving rise to such refund), net of all out-of-pocket expenses (including
Taxes) of such indemnified party and without interest (other than any interest
paid by the relevant Governmental Authority with respect to such refund). Such
indemnifying party, upon the request of such indemnified party, shall repay to
such indemnified party the amount paid over pursuant to this paragraph (g)
(plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) in the event that such indemnified party is required to
repay such refund to such Governmental Authority. Notwithstanding anything to
the contrary in this paragraph (g), in no event will the indemnified party be
required to pay any amount to an indemnifying party pursuant to this paragraph
(g) the payment of which would place the indemnified party in a less favorable
net after-Tax position than the indemnified party would have been in if the Tax
subject to 

39

indemnification and giving rise to such refund had not been deducted,
withheld or otherwise imposed and the indemnification payments or additional
amounts with respect to such Tax had never been paid. This paragraph shall not
be construed to require any indemnified party to make available its Tax returns
(or any other information relating to its Taxes that it deems confidential) to
the indemnifying party or any other Person. 

                    (h)
Survival. Each party’s obligations under this Section 2.17 shall survive
the resignation or replacement of the Administrative Agent or any assignment of
rights by, or the replacement of, a Lender, the termination of the Commitments
and the repayment, satisfaction or discharge of all obligations under any Loan
Document. 

                    (i)
Defined Terms. For purposes of this Section 2.17, the term “Lender”
includes each Issuing Bank and the term “applicable law” includes FATCA. 

                    SECTION
2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs. (a)
Each Borrower shall make each payment required to be made by it hereunder
(whether of principal, interest, fees or reimbursement of LC Disbursements, or
of amounts payable under Section 2.15, 2.16 or 2.17, or otherwise) prior to (i)
in the case of payments denominated in Dollars, 12:00 noon, Chicago time and
(ii) in the case of payments denominated in a Foreign Currency, 12:00 noon,
Local Time, in the city of the Administrative Agent’s Eurocurrency Payment
Office for such currency, in each case on the date when due, in immediately
available funds, without set-off or counterclaim. Any amounts received after
such time on any date may, in the discretion of the Administrative Agent, be
deemed to have been received on the next succeeding Business Day for purposes
of calculating interest thereon. All such payments shall be made (i) in the
same currency in which the applicable Credit Event was made (or where such
currency has been converted to euro, in euro) and (ii) to the Administrative
Agent at its offices at 10 South Dearborn Street, Chicago, Illinois 60603 or,
in the case of a Credit Event denominated in a Foreign Currency, the
Administrative Agent’s Eurocurrency Payment Office for such currency, except
payments to be made directly to an Issuing Bank or the Swingline Lender as
expressly provided herein and except that payments pursuant to Sections 2.15, 2.16,
2.17 and 9.03 shall be made directly to the Persons entitled thereto. The
Administrative Agent shall distribute any such payments denominated in the same
currency received by it for the account of any other Person to the appropriate
recipient promptly following receipt thereof. If any payment hereunder shall be
due on a day that is not a Business Day, the date for payment shall be extended
to the next succeeding Business Day, and, in the case of any payment accruing
interest, interest thereon shall be payable for the period of such extension.
Notwithstanding the foregoing provisions of this Section, if, after the making
of any Credit Event in any Foreign Currency, currency control or exchange
regulations are imposed in the country which issues such currency with the
result that the type of currency in which the Credit Event was made (the “Original
Currency”) no longer exists or any Borrower is not able to make payment to
the Administrative Agent for the account of the Lenders in such Original
Currency, then all payments to be made by such Borrower hereunder in such
currency shall instead be made when due in Dollars in an amount equal to the
Dollar Amount (as of the date of repayment) of such payment due, it being the
intention of the parties hereto that the Borrowers take all risks of the
imposition of any such currency control or exchange regulations. 

                    (b)
If at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, unreimbursed LC
Disbursements, interest and fees then due hereunder, such funds shall be
applied (i) first, towards payment of interest and fees then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
interest and fees then due to such parties, and (ii) second, towards payment of
principal and unreimbursed LC Disbursements then due hereunder, ratably among
the parties entitled thereto in accordance with the amounts of principal and
unreimbursed LC Disbursements then due to such parties. 

40

                    (c)
If any Lender shall, by exercising any right of set-off or counterclaim or
otherwise, obtain payment in respect of any principal of or interest on any of
its Revolving Loans or participations in LC Disbursements or Swingline Loans
resulting in such Lender receiving payment of a greater proportion of the
aggregate amount of its Revolving Loans and participations in LC Disbursements
and Swingline Loans and accrued interest thereon than the proportion received by
any other Lender, then the Lender receiving such greater proportion shall
purchase (for cash at face value) participations in the Revolving Loans and
participations in LC Disbursements and Swingline Loans of other Lenders to the
extent necessary so that the benefit of all such payments shall be shared by
the Lenders ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Revolving Loans and participations in LC
Disbursements and Swingline Loans; provided that (i) if any such
participations are purchased and all or any portion of the payment giving rise
thereto is recovered, such participations shall be rescinded and the purchase
price restored to the extent of such recovery, without interest, and (ii) the provisions
of this paragraph shall not be construed to apply to any payment made by any
Borrower pursuant to and in accordance with the express terms of this Agreement
or any payment obtained by a Lender as consideration for the assignment of or
sale of a participation in any of its Loans or participations in LC
Disbursements and Swingline Loans to any assignee or participant, other than to
the Company or any Subsidiary or Affiliate thereof (as to which the provisions
of this paragraph shall apply). Each Borrower consents to the foregoing and
agrees, to the extent it may effectively do so under applicable law, that any
Lender acquiring a participation pursuant to the foregoing arrangements may
exercise against such Borrower rights of set-off and counterclaim with respect
to such participation as fully as if such Lender were a direct creditor of such
Borrower in the amount of such participation. 

                    (d)
Unless the Administrative Agent shall have received notice from the relevant
Borrower prior to the date on which any payment is due to the Administrative
Agent for the account of the Lenders or the Issuing Banks hereunder that such
Borrower will not make such payment, the Administrative Agent may assume that
such Borrower has made such payment on such date in accordance herewith and
may, in reliance upon such assumption, distribute to the Lenders or the Issuing
Banks, as the case may be, the amount due. In such event, if such Borrower has
not in fact made such payment, then each of the Lenders or each Issuing Bank,
as the case may be, severally agrees to repay to the Administrative Agent
forthwith on demand the amount so distributed to such Lender or such Issuing
Bank with interest thereon, for each day from and including the date such
amount is distributed to it to but excluding the date of payment to the
Administrative Agent, at the greater of the Federal Funds Effective Rate and a
rate determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation (including without limitation the Overnight
Foreign Currency Rate in the case of Loans denominated in a Foreign Currency). 

                    (e)
If any Lender shall fail to make any payment required to be made by it pursuant
to Section 2.05(c), 2.06(d) or (e), 2.07(b), 2.18(d) or 9.03(c), then the
Administrative Agent may, in its discretion (notwithstanding any contrary
provision hereof), (i) apply any amounts thereafter received by the
Administrative Agent for the account of such Lender and for the benefit of the
Administrative Agent, the Swingline Lender or the relevant Issuing Bank to
satisfy such Lender’s obligations to it under such Section until all such
unsatisfied obligations are fully paid and/or (ii) hold any such amounts in a
segregated account over which the Administrative Agent shall have exclusive
control as cash collateral for, and application to, any future funding
obligations of such Lender under any such Section; in the case of each of
clauses (i) and (ii) above, in any order as determined by the Administrative
Agent in its discretion. 

                    SECTION
2.19. Mitigation Obligations; Replacement of Lenders. (a) If any Lender
requests compensation under Section 2.15, or if any Borrower is required to pay
any Indemnified Taxes or additional amounts to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.17, then such
Lender shall use reasonable efforts to designate a different lending 

41

office for funding or booking its Loans hereunder or to assign its
rights and obligations hereunder to another of its offices, branches or
affiliates, if, in the judgment of such Lender, such designation or assignment
(i) would eliminate or reduce amounts payable pursuant to Section 2.15 or 2.17,
as the case may be, in the future and (ii) would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such
Lender. The Company hereby agrees to pay all reasonable costs and expenses
incurred by any Lender in connection with any such designation or assignment. 

                    (b)
If (i) any Lender requests compensation under Section 2.15, (ii) any Borrower
is required to pay any Indemnified Taxes or additional amounts to any Lender or
any Governmental Authority for the account of any Lender pursuant to Section
2.17 or (iii) any Lender becomes a Defaulting Lender, then the Company may, at
its sole expense and effort, upon notice to such Lender and the Administrative
Agent, require such Lender to assign and delegate, without recourse (in
accordance with and subject to the restrictions contained in Section 9.04), all
its interests, rights (other than its existing rights to payments pursuant to
Sections 2.15 or 2.17) and obligations under the Loan Documents to an assignee that
shall assume such obligations (which assignee may be another Lender, if a
Lender accepts such assignment); provided that (i) the Company shall
have received the prior written consent of the Administrative Agent, which
consent shall not unreasonably be withheld, (ii) such Lender shall have
received payment of an amount equal to the outstanding principal of its Loans
and participations in LC Disbursements and Swingline Loans, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder, from the
assignee (to the extent of such outstanding principal and accrued interest and
fees) or the Company (in the case of all other amounts) and (iii) in the case
of any such assignment resulting from a claim for compensation under Section
2.15 or payments required to be made pursuant to Section 2.17, such assignment
will result in a reduction in such compensation or payments. A Lender shall not
be required to make any such assignment and delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the
Company to require such assignment and delegation cease to apply. 

                    SECTION
2.20. Expansion Option. The Company may from time to time elect to
increase the Commitments or enter into one or more tranches of term loans (each
an “Incremental Term Loan”), in each case in minimum increments of
$10,000,000 so long as, after giving effect thereto, the aggregate amount of
such increases and all such Incremental Term Loans does not exceed $50,000,000.
The Company may arrange for any such increase or tranche to be provided by one
or more Lenders (each Lender so agreeing to an increase in its Commitment, or
to participate in such Incremental Term Loans, an “Increasing Lender”),
or by one or more new banks, financial institutions or other entities (each
such new bank, financial institution or other entity, an “Augmenting Lender”),
to increase their existing Commitments, or to participate in such Incremental
Term Loans, or extend Commitments, as the case may be; provided that (i)
each Augmenting Lender, shall be subject to the approval of the Company and the
Administrative Agent and (ii) (x) in the case of an Increasing Lender, the
Company and such Increasing Lender execute an agreement substantially in the
form of Exhibit C hereto, and (y) in the case of an Augmenting Lender,
the Company and such Augmenting Lender execute an agreement substantially in
the form of Exhibit D hereto. No consent of any Lender (other than the
Lenders participating in the increase or any Incremental Term Loan) shall be
required for any increase in Commitments or Incremental Term Loan pursuant to
this Section 2.20. Increases and new Commitments and Incremental Term Loans
created pursuant to this Section 2.20 shall become effective on the date agreed
by the Company, the Administrative Agent and the relevant Increasing Lenders or
Augmenting Lenders and the Administrative Agent shall notify each Lender
thereof. Notwithstanding the foregoing, no increase in the Commitments (or in
the Commitment of any Lender) or tranche of Incremental Term Loans shall become
effective under this paragraph unless, (i) on the proposed date of the
effectiveness of such increase or Incremental Term Loans, (A) the conditions
set forth in paragraphs (a) and (b) of Section 4.02 shall be satisfied or
waived by the Required Lenders and the Administrative Agent shall have received
a 

42

certificate to that effect dated such date and executed by a Financial
Officer of the Company and (B) the Company shall be in compliance (on a pro
forma basis reasonably acceptable to the Administrative Agent) with the
covenants contained in Section 6.11 and (ii) the Administrative Agent shall
have received documents consistent with those delivered on the Effective Date as
to the corporate power and authority of the Borrowers to borrow hereunder after
giving effect to such increase. On the effective date of any increase in the
Commitments or any Incremental Term Loans being made, (i) each relevant
Increasing Lender and Augmenting Lender shall make available to the
Administrative Agent such amounts in immediately available funds as the
Administrative Agent shall determine, for the benefit of the other Lenders, as
being required in order to cause, after giving effect to such increase and the
use of such amounts to make payments to such other Lenders, each Lender’s
portion of the outstanding Revolving Loans of all the Lenders to equal its
Applicable Percentage of such outstanding Revolving Loans, and (ii) except in
the case of any Incremental Term Loans, the Borrowers shall be deemed to have
repaid and reborrowed all outstanding Revolving Loans as of the date of any
increase in the Commitments (with such reborrowing to consist of the Types of
Revolving Loans, with related Interest Periods if applicable, specified in a
notice delivered by the applicable Borrower, or the Company on behalf of the
applicable Borrower, in accordance with the requirements of Section 2.03). The
deemed payments made pursuant to clause (ii) of the immediately preceding
sentence shall be accompanied by payment of all accrued interest on the amount
prepaid and, in respect of each Eurocurrency Loan, shall be subject to
indemnification by the Borrowers pursuant to the provisions of Section 2.16 if
the deemed payment occurs other than on the last day of the related Interest
Periods. The Incremental Term Loans (a) shall rank pari passu in right of
payment with the Revolving Loans, (b) shall not mature earlier than the
Maturity Date (but may have amortization prior to such date) and (c) shall be
treated substantially the same as (and in any event no more favorably than) the
Revolving Loans; provided that (i) the terms and conditions applicable
to any tranche of Incremental Term Loans maturing after the Maturity Date may
provide for material additional or different financial or other covenants or
prepayment requirements applicable only during periods after the Maturity Date
and (ii) the Incremental Term Loans may be priced differently than the
Revolving Loans. Incremental Term Loans may be made hereunder pursuant to an
amendment or restatement (an “Incremental Term Loan Amendment”) of this
Agreement and, as appropriate, the other Loan Documents, executed by the
Borrowers, each Increasing Lender participating in such tranche, each
Augmenting Lender participating in such tranche, if any, and the Administrative
Agent. The Incremental Term Loan Amendment may, without the consent of any
other Lenders, effect such amendments to this Agreement and the other Loan
Documents as may be necessary or appropriate, in the reasonable opinion of the
Administrative Agent, to effect the provisions of this Section 2.20. Nothing
contained in this Section 2.20 shall constitute, or otherwise be deemed to be,
a commitment on the part of any Lender to increase its Commitment hereunder, or
provide Incremental Term Loans, at any time. 

                    SECTION
2.21. Market Disruption. Notwithstanding the satisfaction of all
conditions referred to in Article II and Article IV with respect to any Credit
Event to be effected in any Foreign Currency, if (i) there shall occur on or
prior to the date of such Credit Event any change in national or international
financial, political or economic conditions or currency exchange rates or
exchange controls which would in the reasonable opinion of the Administrative
Agent, the relevant Issuing Bank (if such Credit Event is a Letter of Credit)
or the Required Lenders make it impracticable for the Eurocurrency Borrowings
or Letters of Credit comprising such Credit Event to be denominated in the
Agreed Currency specified by the applicable Borrower or (ii) an Equivalent
Amount of such currency is not readily calculable, then the Administrative
Agent shall forthwith give notice thereof to such Borrower, the Lenders and, if
such Credit Event is a Letter of Credit, the relevant Issuing Bank, and such
Credit Events shall not be denominated in such Agreed Currency but shall,
except as otherwise set forth in Section 2.07, be made on the date of such
Credit Event in Dollars, (a) if such Credit Event is a Borrowing, in an
aggregate principal amount equal to the Dollar Amount of the aggregate
principal amount specified in the related request for a Credit Event or
Interest Election Request, as the case may be, as ABR Loans, unless such
Borrower notifies the Administrative Agent at least one Business Day before
such date that (i) it 

43

elects not to borrow on such date or (ii) it elects to borrow on such
date in a different Agreed Currency, as the case may be, in which the denomination
of such Loans would in the reasonable opinion of the Administrative Agent and
the Required Lenders be practicable and in an aggregate principal amount equal
to the Dollar Amount of the aggregate principal amount specified in the related
request for a Credit Event or Interest Election Request, as the case may be or
(b) if such Credit Event is a Letter of Credit, in a face amount equal to the
Dollar Amount of the face amount specified in the related request or
application for such Letter of Credit, unless such Borrower notifies the
Administrative Agent at least one (1) Business Day before such date that (i) it
elects not to request the issuance of such Letter of Credit on such date or
(ii) it elects to have such Letter of Credit issued on such date in a different
Agreed Currency, as the case may be, in which the denomination of such Letter
of Credit would in the reasonable opinion of the relevant Issuing Bank, the
Administrative Agent and the Required Lenders be practicable and in face amount
equal to the Dollar Amount of the face amount specified in the related request
or application for such Letter of Credit, as the case may be. 

                    SECTION
2.22. Judgment Currency. If for the purposes of obtaining judgment in
any court it is necessary to convert a sum due from any Borrower hereunder in
the currency expressed to be payable herein (the “specified currency”)
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 Administrative Agent
could purchase the specified currency with such other currency at the
Administrative Agent’s main New York City office on the Business Day preceding
that on which final, non-appealable judgment is given. The obligations of each
Borrower in respect of any sum due to any Lender or the Administrative Agent
hereunder shall, notwithstanding any judgment in a currency other than the
specified currency, be discharged only to the extent that on the Business Day
following receipt by such Lender or the Administrative Agent (as the case may
be) of any sum adjudged to be so due in such other currency such Lender or the
Administrative Agent (as the case may be) may in accordance with normal,
reasonable banking procedures purchase the specified currency with such other
currency. If the amount of the specified currency so purchased is less than the
sum originally due to such Lender or the Administrative Agent, as the case may be,
in the specified currency, each Borrower agrees, to the fullest extent that it
may effectively do so, as a separate obligation and notwithstanding any such
judgment, to indemnify such Lender or the Administrative Agent, as the case may
be, against such loss, and if the amount of the specified currency so purchased
exceeds (a) the sum originally due to any Lender or the Administrative Agent,
as the case may be, in the specified currency and (b) any amounts shared with
other Lenders as a result of allocations of such excess as a disproportionate
payment to such Lender under Section 2.18, such Lender or the Administrative
Agent, as the case may be, agrees to remit such excess to such Borrower. 

                    SECTION
2.23. Designation of Foreign Subsidiary Borrowers. The Company may at
any time and from time to time designate any Eligible Foreign Subsidiary as a
Foreign Subsidiary Borrower by delivery to the Administrative Agent of a
Borrowing Subsidiary Agreement executed by such Subsidiary and the Company and
the satisfaction of the other conditions precedent set forth in Section 4.03,
and upon such delivery and satisfaction such Subsidiary shall for all purposes
of this Agreement be a Foreign Subsidiary Borrower and a party to this
Agreement until the Company shall have executed and delivered to the
Administrative Agent a Borrowing Subsidiary Termination with respect to such
Subsidiary, whereupon such Subsidiary shall cease to be a Foreign Subsidiary
Borrower and a party to this Agreement. Notwithstanding the preceding sentence,
no Borrowing Subsidiary Termination will become effective as to any Foreign
Subsidiary Borrower at a time when any principal of or interest on any Loan to
such Borrower shall be outstanding hereunder, provided that such
Borrowing Subsidiary Termination shall be effective to terminate the right of
such Foreign Subsidiary Borrower to make further Borrowings under this
Agreement. As soon as practicable upon receipt of a Borrowing Subsidiary
Agreement, the Administrative Agent shall furnish a copy thereof to each
Lender. 

44

                    SECTION
2.24. Senior Debt. The Company hereby designates all Obligations now or
hereinafter incurred or otherwise outstanding, and agrees that the Obligations
shall at all times constitute, senior indebtedness and designated senior
indebtedness, or terms of similar import, which are entitled to the benefits of
the subordination provisions of all Subordinated Indebtedness. 

                    SECTION
2.25. Defaulting Lenders. Notwithstanding any provision of this
Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the
following provisions shall apply for so long as such Lender is a Defaulting
Lender: 

	
  

 	
  

 
	
  

 	
           (a) fees
 shall cease to accrue on the unfunded portion of the Commitment of such
 Defaulting Lender pursuant to Section 2.12(a); 

 
	
  

 	
  

 
	
  

 	
           (b) the
 Commitment and Revolving Credit Exposure of such Defaulting Lender shall not
 be included in determining whether all Lenders or the Required Lenders have
 taken or may take any action hereunder (including any consent to any
 amendment, waiver or other modification pursuant to Section 9.02); provided,
 that, except as otherwise provided in Section 9.02, this clause (b) shall not
 apply to the vote of a Defaulting Lender in the case of an amendment, waiver
 or other modification requiring the consent of such Lender or each Lender
 affected thereby; 

 
	
  

 	
  

 
	
  

 	
           (c) if
 any Swingline Exposure or LC Exposure exists at the time such Lender becomes
 a Defaulting Lender then: 

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i) all
 or any part of the Swingline Exposure and LC Exposure of such Defaulting
 Lender shall be reallocated among the non-Defaulting Lenders in accordance
 with their respective Applicable Percentages but only to the extent that the
 sum of all non-Defaulting Lenders’ Revolving Credit Exposures plus such
 Defaulting Lender’s Swingline Exposure and LC Exposure does not exceed the
 total of all non-Defaulting Lenders’ Commitments; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii) if
 the reallocation described in clause (i) above cannot, or can only partially,
 be effected, the Company shall within one (1) Business Day following notice
 by the Administrative Agent (x) first, prepay such Swingline Exposure
 and (y) second, cash collateralize for the benefit of the relevant
 Issuing Banks only the Borrowers’ obligations corresponding to such
 Defaulting Lender’s LC Exposure (after giving effect to any partial
 reallocation pursuant to clause (i) above) in accordance with the procedures
 set forth in Section 2.06(j) for so long as such LC Exposure is outstanding; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iii) if
 the Company cash collateralizes any portion of such Defaulting Lender’s LC
 Exposure pursuant to clause (ii) above, the Borrowers shall not be required
 to pay any fees to such Defaulting Lender pursuant to Section 2.12(b) with
 respect to such Defaulting Lender’s LC Exposure during the period such
 Defaulting Lender’s LC Exposure is cash collateralized; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iv) if
 the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to clause
 (i) above, then the fees payable to the Lenders pursuant to Section 2.12(a)
 and Section 2.12(b) shall be adjusted in accordance with such non-Defaulting
 Lenders’ Applicable Percentages; and 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (v) if
 all or any portion of such Defaulting Lender’s LC Exposure is neither
 reallocated nor cash collateralized pursuant to clause (i) or (ii) above,
 then, without prejudice to any rights or remedies of any Issuing Bank or any
 other Lender hereunder, 

 

45

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 all letter of credit fees payable under Section 2.12(b) with respect
 to such Defaulting Lender’s LC Exposure shall be payable to the relevant
 Issuing Banks until and to the extent that such LC Exposure is reallocated
 and/or cash collateralized; and 

 

	
  

 	
  

 
	
  

 	
           (d) so
 long as such Lender is a Defaulting Lender, the Swingline Lender shall not be
 required to fund any Swingline Loan and the Issuing Banks shall not be
 required to issue, amend or increase any Letter of Credit, unless it is
 satisfied that the related exposure and the Defaulting Lender’s then
 outstanding LC Exposure will be 100% covered by the Commitments of the
 non-Defaulting Lenders and/or cash collateral will be provided by the Company
 in accordance with Section 2.25(c), and participating interests in any such
 newly made Swingline Loan or any newly issued or increased Letter of Credit
 shall be allocated among non-Defaulting Lenders in a manner consistent with
 Section 2.25(c)(i) (and such Defaulting Lender shall not participate
 therein). 

 

          If (i) a
Bankruptcy Event with respect to a Parent of any Lender shall occur following
the date hereof and for so long as such event shall continue or (ii) the
Swingline Lender or any Issuing Bank has a good faith belief that any Lender
has defaulted in fulfilling its obligations under one or more other agreements
in which such Lender commits to extend credit, the Swingline Lender shall not
be required to fund any Swingline Loan and no Issuing Bank shall be required to
issue, amend or increase any Letter of Credit, unless the Swingline Lender or
such Issuing Bank, as the case may be, shall have entered into arrangements
with the Company or such Lender, satisfactory to the Swingline Lender or such
Issuing Bank, as the case may be, to defease any risk to it in respect of such
Lender hereunder. 

          In the
event that the Administrative Agent, the Company, the Swingline Lender and each
Issuing Bank each agrees that a Defaulting Lender has adequately remedied all
matters that caused such Lender to be a Defaulting Lender, then the Swingline
Exposure and LC Exposure of the Lenders shall be readjusted to reflect the
inclusion of such Lender’s Commitment and on such date such Lender shall
purchase at par such of the Loans of the other Lenders (other than Swingline
Loans) as the Administrative Agent shall determine may be necessary in order
for such Lender to hold such Loans in accordance with its Applicable
Percentage. 

ARTICLE III

Representations and Warranties

                    Each
Borrower represents and warrants to the Lenders that: 

                    SECTION
3.01. Organization; Powers; Subsidiaries. Each of the Company and its
Material Subsidiaries is duly organized, validly existing and in good standing
(to the extent such concept is applicable in the relevant jurisdiction) under
the laws of the jurisdiction of its organization, has all requisite power and
authority to carry on its business as now conducted and, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business
in, and is in good standing (to the extent such concept is applicable) in,
every jurisdiction where such qualification is required. Schedule 3.01
hereto (as supplemented from time to time) identifies each Subsidiary, noting
whether such Subsidiary is a Material Subsidiary, the jurisdiction of its
incorporation or organization, as the case may be, the percentage of issued and
outstanding shares of each class of its capital stock or other equity interests
owned by the Company and the other Subsidiaries and, if such percentage is not
100% (excluding directors’ qualifying shares as required by law), a description
of each class issued and outstanding. All of the outstanding shares of capital
stock and other equity interests of each Subsidiary are validly issued and
outstanding and fully paid and nonassessable and all such shares and other
equity interests indicated on Schedule 3.01 as owned by the Company or
another Subsidiary are owned, beneficially and of record, by the Company or any

46

Subsidiary free and clear of all Liens. Other than pursuant to employee
compensation plans or in connection with Permitted Acquisitions, there are no
outstanding commitments or other obligations of the Company or any Material
Subsidiary to issue, and no options, warrants or other rights of any Person to
acquire, any shares of any class of capital stock or other equity interests of
the Company or any Material Subsidiary. 

                    SECTION
3.02. Authorization; Enforceability. The Transactions are within each
Loan Party’s corporate powers and have been duly authorized by all necessary
corporate and, if required, shareholder action. The Loan Documents to which
each Loan Party is a party have been duly executed and delivered by such Loan
Party and constitute a legal, valid and binding obligation of such Loan Party,
enforceable in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors’
rights generally and subject to general principles of equity, regardless of
whether considered in a proceeding in equity or at law. 

                    SECTION
3.03. Governmental Approvals; No Conflicts. The Transactions (a) do not
require any consent or approval of, registration or filing with, or any other
action by, any Governmental Authority, except such as have been obtained or
made and are in full force and effect, (b) will not violate any applicable law
or regulation or the charter, by-laws or other organizational documents of any
Borrower or any of the Material Subsidiaries or any order of any Governmental
Authority, (c) will not violate or result in a default under any indenture,
agreement or other instrument binding upon any Borrower or any of the Material
Subsidiaries or its assets, or give rise to a right thereunder to require any
payment to be made by any Borrower or any of the Material Subsidiaries, and (d)
will not result in the creation or imposition of any Lien on any asset of any
Borrower or any of the Material Subsidiaries. 

                    SECTION
3.04. Financial Condition; No Material Adverse Change. (a) The Company
has heretofore furnished to the Lenders its consolidated balance sheet and
statements of income, stockholders equity and cash flows (i) as of and for the
fiscal year ended October 1, 2011 reported on by KMPG LLP, independent public
accountants and (ii) as of and for the fiscal quarter and the portion of the
fiscal year ended December 31, 2011, March 31, 2012 and June 30, 2012,
certified by its chief financial officer. Such financial statements present
fairly, in all material respects, the financial position and results of
operations and cash flows of the Company and its consolidated Subsidiaries as
of such dates and for such periods in accordance with GAAP, subject to year-end
audit adjustments and the absence of footnotes in the case of the statements
referred to in clause (ii) above. 

                    (b)
Since October 1, 2011, there has been no material adverse change in the
business, assets, operations or condition, financial or otherwise, of the
Company and its Subsidiaries, taken as a whole. 

                    SECTION
3.05. Properties. (a) Each of the Company and its Material Subsidiaries
has good title to, or valid leasehold interests in, all its real and personal
property material to its business, except for minor defects in title that do
not interfere with its ability to conduct its business as currently conducted
or to utilize such properties for their intended purposes. 

                    (b)
Each of the Company and its Subsidiaries owns, or is licensed to use, all
trademarks, tradenames, copyrights, patents and other intellectual property
material to its business, and the use thereof by the Company and its
Subsidiaries does not, to their knowledge, infringe upon the rights of any
other Person, except for any such infringements that, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect. 

                    SECTION
3.06. Litigation and Environmental Matters. (a) There are no actions,
suits, proceedings or investigations by or before any arbitrator or
Governmental Authority pending against or, 

47

to
the knowledge of any Borrower, threatened against or affecting the Company or
any of its Subsidiaries (i) as to which there is a reasonable possibility of an
adverse determination and that, if adversely determined, could reasonably be
expected, individually or in the aggregate, to result in a Material Adverse
Effect or (ii) that involve this Agreement or the Transactions. There are no
labor controversies pending against or, to the knowledge of the Company,
threatened against or affecting the Company or any of its Subsidiaries (i)
which could reasonably be expected, individually or in the aggregate, to result
in a Material Adverse Effect, or (ii) that involve this Agreement or the
Transactions. 

                    (b)
Except with respect to any other matters that, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect, neither the Company nor any of its Subsidiaries (i) has failed to
comply with any Environmental Law or to obtain, maintain or comply with any
permit, license or other approval required under any Environmental Law, (ii)
has become subject to any Environmental Liability, (iii) has received notice of
any claim with respect to any Environmental Liability or (iv) knows of any
basis for any Environmental Liability. 

                    SECTION
3.07. Compliance with Laws and Agreements. Each of the Company and its
Subsidiaries is in compliance with all laws, regulations and orders of any
Governmental Authority applicable to it or its property and all indentures,
agreements and other instruments binding upon it or its property, except where
the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect. 

                    SECTION
3.08. Investment Company Status. Neither the Company nor any of its
Subsidiaries is an “investment company” as defined in, or subject to regulation
under, the Investment Company Act of 1940. 

                    SECTION
3.09. Taxes. Each of the Company and its Subsidiaries has timely filed
or caused to be filed all Tax returns and reports required to have been filed
and has paid or caused to be paid all Taxes required to have been paid by it,
except (a) Taxes that are being contested in good faith by appropriate
proceedings and for which the Company or such Subsidiary, as applicable, has
set aside on its books adequate reserves or (b) to the extent that the failure
to do so could not reasonably be expected to result in a Material Adverse
Effect. 

                    SECTION
3.10. ERISA. No ERISA Event has occurred or is reasonably expected to
occur that, when taken together with all other such ERISA Events for which
liability is reasonably expected to occur, could reasonably be expected to
result in a Material Adverse Effect. 

                    SECTION
3.11. Disclosure. The Company has disclosed to the Lenders all material
agreements, instruments and corporate or other restrictions to which it or any
of its Subsidiaries is subject, and all other matters known to it, that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect. Neither the Information Memorandum nor any of the
other reports, financial statements, certificates or other information
furnished by or on behalf of the Company or any Subsidiary to the
Administrative Agent or any Lender in connection with the negotiation of this
Agreement or delivered hereunder (as modified or supplemented by other
information so furnished) contains any material misstatement of fact or omits
to state any material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided
that, with respect to projected financial information, the Borrowers represent
only that such information was prepared in good faith based upon assumptions
believed to be reasonable at the time. 

                    SECTION
3.12. Federal Reserve Regulations. No part of the proceeds of any Loan
have been used or will be used, whether directly or indirectly, for any purpose
that entails a violation of any of the Regulations of the Board, including
Regulations T, U and X. 

48

                    SECTION
3.13. Liens. There are no Liens on any of the real or personal
properties of the Company or any Subsidiary except for Liens permitted by
Section 6.02. 

                    SECTION
3.14. No Default. Each Borrower is in full compliance with this
Agreement and no Default or Event of Default has occurred and is continuing. 

                    SECTION
3.15. No Burdensome Restrictions. On the date hereof, no Borrower is
subject to any Burdensome Restrictions except Burdensome Restrictions permitted
under Section 6.08. 

ARTICLE IV

Conditions

                    SECTION
4.01. Effective Date. The obligations of the Lenders to make Loans and of the
Issuing Banks to issue Letters of Credit hereunder shall not become effective
until the date on which each of the following conditions is satisfied (or
waived in accordance with Section 9.02): 

	
  

 	
  

 
	
  

 	
           (a)
 The Administrative Agent (or its counsel) shall have received from (i) each
 party hereto either (A) a counterpart of this Agreement signed on behalf of
 such party or (B) written evidence satisfactory to the Administrative Agent
 (which may include telecopy or electronic transmission of a signed signature
 page of this Agreement) that such party has signed a counterpart of this
 Agreement and (ii) each initial Subsidiary Guarantor (if any) either (A) a
 counterpart of the Subsidiary Guaranty signed on behalf of such Subsidiary
 Guarantor or (B) written evidence satisfactory to the Administrative Agent
 (which may include telecopy or electronic transmission of a signed signature
 page of the Subsidiary Guaranty) that such Subsidiary Guarantor has signed a
 counterpart of the Subsidiary Guaranty. 

 
	
  

 	
  

 
	
  

 	
           (b)
 The Administrative Agent shall have received a favorable written opinion
 (addressed to the Administrative Agent and the Lenders and dated the
 Effective Date) of Faegre Baker Daniels LLP, special counsel for the initial
 Loan Parties, covering such matters relating to the Loan Parties, the Loan
 Documents or the Transactions as the Administrative Agent shall reasonably
 request. The Company hereby requests such counsel to deliver such opinion. 

 
	
  

 	
  

 
	
  

 	
           (c)
 The Lenders shall have received (i) satisfactory audited consolidated
 financial statements of the Company for the two most recent fiscal years
 ended prior to the Effective Date as to which such financial statements are
 available, (ii) satisfactory unaudited interim consolidated financial
 statements of the Company for each quarterly period ended subsequent to the
 date of the latest financial statements delivered pursuant to clause (i) of
 this paragraph as to which such financial statements are publicly available
 and (iii) satisfactory financial statement projections through and including
 the Company’s 2017 fiscal year, together with such information as the
 Administrative Agent and the Lenders shall reasonably request (including,
 without limitation, a detailed description of the assumptions used in
 preparing such projections). 

 
	
  

 	
  

 
	
  

 	
           (d)
The Administrative Agent shall have received such documents and certificates
as the Administrative Agent or its counsel may reasonably request relating to
the organization, existence and good standing of the initial Loan Parties,
the authorization of the Transactions and any other legal matters relating to
such Loan Parties, the Loan Documents or the Transactions, all in form and
substance satisfactory to the Administrative Agent and its counsel and as
further described in the list of closing documents attached as Exhibit E.  

 

49

	
  

 	
  

 
	
  

 	
           (e)
 The Administrative Agent shall have received a certificate, dated the
 Effective Date and signed by the President, a Vice President or a Financial
 Officer of the Company, confirming compliance with the conditions set forth
 in paragraphs (a) and (b) of Section 4.02. 

 
	
  

 	
  

 
	
  

 	
           (f)
 The Administrative Agent shall have received evidence satisfactory to it that
 the Existing Credit Agreement shall have been terminated and cancelled and
 all indebtedness thereunder shall have been fully repaid (except to the
 extent being so repaid with the initial Revolving Loans). 

 
	
  

 	
  

 
	
  

 	
           (g)
 The Administrative Agent shall have received all fees and other amounts due
 and payable on or prior to the Effective Date, including, to the extent invoiced,
 reimbursement or payment of all out-of-pocket expenses required to be
 reimbursed or paid by the Company hereunder. 

 

The
Administrative Agent shall notify the Company and the Lenders of the Effective
Date, and such notice shall be conclusive and binding. 

                    SECTION
4.02. Each Credit Event. The obligation of each Lender to make a Loan on
the occasion of any Borrowing, and of the Issuing Banks to issue, amend, renew
or extend any Letter of Credit, is subject to the satisfaction of the following
conditions: 

	
  

 	
  

 
	
  

 	
           (a)
 The representations and warranties of the Borrowers set forth in this
 Agreement (other than the representation and warranty set forth in Section
 3.04(b)) shall be true and correct on and as of the date of such Borrowing or
 the date of issuance, amendment, renewal or extension of such Letter of
 Credit, as applicable. 

 
	
  

 	
  

 
	
  

 	
           (b)
 At the time of and immediately after giving effect to such Borrowing or the
 issuance, amendment, renewal or extension of such Letter of Credit, as applicable,
 no Default shall have occurred and be continuing. 

 
	
  

 	
  

 
	
  

 	
           (c)
 No law or regulation shall prohibit, and no order, judgment or decree of any
 Governmental Authority shall enjoin, prohibit or restrain, any Lender from
 making the requested Loan or the relevant Issuing Bank or any Lender from
 issuing, renewing, extending or increasing the face amount of or
 participating in the Letter of Credit requested to be issued, renewed,
 extended or increased. 

 

Each
Borrowing and each issuance, amendment, renewal or extension of a Letter of
Credit shall be deemed to constitute a representation and warranty by the
Borrowers on the date thereof as to the matters specified in paragraphs (a) and
(b) of this Section. 

                    SECTION
4.03. Designation of a Foreign Subsidiary Borrower. The designation of a
Foreign Subsidiary Borrower pursuant to Section 2.23 is subject to the
condition precedent that the Company or such proposed Foreign Subsidiary
Borrower shall have furnished or caused to be furnished to the Administrative
Agent: 

	
  

 	
  

 
	
  

 	
           (a)
 Copies, certified by the Secretary or Assistant Secretary of such Subsidiary,
 of its Board of Directors’ resolutions (and resolutions of other bodies, if
 any are deemed necessary by counsel for the Administrative Agent) approving
 the Borrowing Subsidiary Agreement and any other Loan Documents to which such
 Subsidiary is becoming a party and such documents and certificates as the
 Administrative Agent or its counsel may reasonably request relating to the
 organization, existence and good standing of such Subsidiary; 

 

50

	
  

 	
  

 
	
  

 	
           (b)
 An incumbency certificate, executed by the Secretary or Assistant Secretary
 of such Subsidiary, which shall identify by name and title and bear the
 signature of the officers of such Subsidiary authorized to request Borrowings
 hereunder and sign the Borrowing Subsidiary Agreement and the other Loan
 Documents to which such Subsidiary is becoming a party, upon which
 certificate the Administrative Agent and the Lenders shall be entitled to
 rely until informed of any change in writing by the Company or such
 Subsidiary; 

 
	
  

 	
  

 
	
  

 	
           (c)
 Opinions of counsel to such Subsidiary, in form and substance reasonably
 satisfactory to the Administrative Agent and its counsel, with respect to the
 laws of its jurisdiction of organization and such other matters as are
 reasonably requested by counsel to the Administrative Agent and addressed to
 the Administrative Agent and the Lenders; and 

 
	
  

 	
  

 
	
  

 	
           (d)
 Any promissory notes requested by any Lender, and any other instruments and
 documents reasonably requested by the Administrative Agent. 

 

ARTICLE V

Affirmative Covenants

                    Until
the Commitments have expired or been terminated and the principal of and
interest on each Loan and all fees payable hereunder shall have been paid in
full and all Letters of Credit shall have expired or terminated, in each case,
without any pending draw, and all LC Disbursements shall have been reimbursed,
the Company covenants and agrees with the Lenders that: 

                    SECTION
5.01. Financial Statements and Other Information. The Company will
furnish to the Administrative Agent and each Lender: 

	
  

 	
  

 
	
  

 	
           (a)
 within ninety (90) days after the end of each fiscal year of the Company, its
 audited consolidated balance sheet and related statements of operations,
 stockholders’ equity and cash flows as of the end of and for such year,
 setting forth in each case in comparative form the figures for the previous
 fiscal year, all reported on by KPMG LLP or other independent public
 accountants of recognized national standing (without a “going concern” or
 like qualification or exception and without any qualification or exception as
 to the scope of such audit) to the effect that such consolidated financial
 statements present fairly in all material respects the financial condition
 and results of operations of the Company and its consolidated Subsidiaries on
 a consolidated basis in accordance with GAAP consistently applied; 

 
	
  

 	
  

 
	
  

 	
           (b)
 within forty-five (45) days after the end of each of the first three fiscal
 quarters of each fiscal year of the Company, its consolidated balance sheet
 and related statements of operations, stockholders’ equity and cash flows as
 of the end of and for such fiscal quarter and the then elapsed portion of the
 fiscal year, setting forth in each case in comparative form the figures for
 the corresponding period or periods of (or, in the case of the balance sheet,
 as of the end of) the previous fiscal year, all certified by one of its
 Financial Officers as presenting fairly in all material respects the
 financial condition and results of operations of the Company and its
 consolidated Subsidiaries on a consolidated basis in accordance with GAAP
 consistently applied, subject to normal year-end audit adjustments and the
 absence of footnotes; 

 
	
  

 	
  

 
	
  

 	
           (c)
 concurrently with any delivery of financial statements under clause (a) or
 (b) above, a certificate of a Financial Officer of the Company (i) certifying
 as to whether a Default has occurred and, if a Default has occurred,
 specifying the details thereof and any action taken or proposed to be taken
 with respect thereto, (ii) setting forth reasonably detailed calculations 

 

51

	
  

 	
  

 
	
  

 	
 demonstrating
 compliance with Section 6.11 and (iii) stating whether any change in GAAP or
 in the application thereof has occurred since the date of the audited
 financial statements referred to in Section 3.04 and, if any such change has
 occurred, specifying the effect of such change on the financial statements
 accompanying such certificate; and 

 
	
  

 	
  

 
	
  

 	
           (d)
 promptly following any request therefor, such other information regarding the
 operations, business affairs and financial condition of the Company or any
 Subsidiary, or compliance with the terms of this Agreement, as the
 Administrative Agent or any Lender may reasonably request. 

 

Documents
required to be delivered pursuant to clauses (a) and (b) of this Section 5.01
may be delivered electronically and if so delivered, shall be deemed to have been
delivered on the date on which such documents are filed for public availability
on the SEC’s Electronic Data Gathering and Retrieval System; provided that the
Company shall notify (which may be by facsimile or electronic mail) the
Administrative Agent of the filing of any such documents and provide to the
Administrative Agent by electronic mail electronic versions (i.e., soft copies)
of such documents. Notwithstanding anything contained herein, in every instance
the Company shall be required to provide paper copies of the compliance
certificates required by clause (c) of this Section 5.01 to the Administrative
Agent. 

                    SECTION
5.02. Notices of Material Events. The Company will furnish to the
Administrative Agent and each Lender prompt written notice of the following: 

	
  

 	
  

 
	
  

 	
           (a)
 the occurrence of any Default; 

 
	
  

 	
  

 
	
  

 	
           (b)
 the filing or commencement of any action, suit or proceeding by or before any
 arbitrator or Governmental Authority against or affecting the Company or any
 Subsidiary thereof that, if adversely determined, could reasonably be
 expected to result in a Material Adverse Effect; 

 
	
  

 	
  

 
	
  

 	
           (c)
 the occurrence of any ERISA Event that, alone or together with any other
 ERISA Events that have occurred, could reasonably be expected to result in a
 Material Adverse Effect; and 

 
	
  

 	
  

 
	
  

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

 

Each
notice delivered under this Section shall be accompanied by a statement of a
Financial Officer or other executive officer of the Company setting forth the
details of the event or development requiring such notice and any action taken
or proposed to be taken with respect thereto. 

                    SECTION
5.03. Existence; Conduct of Business. The Company will, and will cause
each of its Material Subsidiaries to, do or cause to be done all things
necessary to preserve, renew and keep in full force and effect its legal
existence and the rights, qualifications, licenses, permits, privileges,
franchises, governmental authorizations and intellectual property rights
material to the conduct of its business, and maintain all requisite authority
to conduct its business in each jurisdiction in which its business is conducted;
provided that the foregoing shall not prohibit any merger, consolidation,
liquidation or dissolution permitted under Section 6.03.  

                    SECTION
5.04. Payment of Obligations. The Company will, and will cause each of
its Subsidiaries to, pay its obligations, including Tax liabilities, that, if
not paid, could result in a Material Adverse Effect before the same shall
become delinquent or in default, except where (a) the validity or amount
thereof is being contested in good faith by appropriate proceedings, (b) the
Company or such 

52

Subsidiary
has set aside on its books adequate reserves with respect thereto in accordance
with GAAP and (c) the failure to make payment pending such contest could not
reasonably be expected to result in a Material Adverse Effect. 

                    SECTION
5.05. Maintenance of Properties; Insurance. The Company will, and will
cause each of its Material Subsidiaries to, (a) keep and maintain all property
material to the conduct of its business in good working order and condition,
ordinary wear and tear excepted, and (b) maintain, with financially sound and
reputable insurance companies, insurance in such amounts and against such risks
as are customarily maintained by companies engaged in the same or similar
businesses operating in the same or similar locations. 

                    SECTION
5.06. Books and Records; Inspection Rights. The Company will, and will
cause each of its Material Subsidiaries to, keep proper books of record and
account in which full, true and correct entries are made of all dealings and
transactions in relation to its business and activities. The Company will, and
will cause each of its Material Subsidiaries to, permit any representatives
designated by the Administrative Agent or any Lender, upon reasonable prior
notice, to visit and inspect its properties, to examine and make extracts from
its books and records, and to discuss its affairs, finances and condition with
its officers and independent accountants, all at such reasonable times and as
often as reasonably requested. 

                    SECTION
5.07. Compliance with Laws and Material Contractual Obligations. The
Company will, and will cause each of its Subsidiaries to, (i) comply with all
laws, rules, regulations and orders of any Governmental Authority applicable to
it or its property (including without limitation Environmental Laws) and (ii)
perform in all material respects its obligations under material agreements to
which it is a party, in each case except where the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect. 

                    SECTION
5.08. Use of Proceeds. The proceeds of the Loans will be used only to
finance the working capital needs, and for general corporate purposes
(including Permitted Acquisitions and Restricted Payments as permitted
hereunder), of the Company and its Subsidiaries in the ordinary course of
business. No part of the proceeds of any Loan will be used, whether directly or
indirectly, for any purpose that entails a violation of any of the Regulations
of the Board, including Regulations T, U and X. 

                    SECTION
5.09. Subsidiary Guaranty. As promptly as possible but in any event
within thirty (30) days (or such later date as may be agreed upon by the
Administrative Agent) after any Person becomes a Subsidiary or any Subsidiary
qualifies independently as, or is designated by the Company or the
Administrative Agent as, a Material Subsidiary, the Company shall provide the
Administrative Agent with written notice thereof setting forth information in
reasonable detail describing the material assets of such Person and shall cause
each such Material Subsidiary (other than Affected Foreign Subsidiaries and
Foreign Subsidiary Borrowers) to deliver to the Administrative Agent a
Subsidiary Guaranty (or a joinder to the Subsidiary Guaranty in the form
contemplated thereby) pursuant to which such Material Subsidiary agrees to be
bound by the terms and provisions thereof, such Subsidiary Guaranty (or joinder
thereto) to be accompanied by appropriate corporate resolutions, other
corporate documentation and legal opinions in form and substance reasonably
satisfactory to the Administrative Agent and its counsel. 

ARTICLE VI

Negative Covenants

53

                    Until
the Commitments have expired or terminated and the principal of and interest on
each Loan and all fees payable hereunder have been paid in full and all Letters
of Credit have expired or terminated, in each case, without any pending draw,
and all LC Disbursements shall have been reimbursed, the Company covenants and
agrees with the Lenders that: 

                    SECTION
6.01. Indebtedness. The Company will not, and will not permit any
Subsidiary to, create, incur, assume or permit to exist any Indebtedness,
except: 

	
  

 	
  

 
	
  

 	
           (a)
 the Obligations and any other Indebtedness created under the Loan Documents; 

 
	
  

 	
  

 
	
  

 	
           (b)
 Indebtedness existing on the date hereof and set forth in Schedule 6.01
 and extensions, renewals and replacements of any such Indebtedness with
 Indebtedness of a similar type that does not increase the outstanding
 principal amount thereof; 

 
	
  

 	
  

 
	
  

 	
           (c)
 Indebtedness of the Company to any Subsidiary and of any Subsidiary to the
 Company or any other Subsidiary; provided that Indebtedness permitted
 under this Section 6.01(c) of any Subsidiary that is not a Loan Party to any
 Loan Party shall be subject to the proviso in Section 6.04(d); 

 
	
  

 	
  

 
	
  

 	
           (d)
 Guarantees permitted by clause (f) below and Guarantees by (i) any Loan Party
 of Indebtedness of any other Loan Party, (ii) any Subsidiary of Indebtedness
 of any Loan Party and (iii) and by any Subsidiary that is not a Loan Party of
 Indebtedness of any other Subsidiary that is not a Loan Party; 

 
	
  

 	
  

 
	
  

 	
           (e)
 Indebtedness of the Company or any Subsidiary incurred to finance the
 acquisition, construction or improvement of any fixed or capital assets,
 including Capital Lease Obligations and any Indebtedness assumed in
 connection with the acquisition of any such assets or secured by a Lien on
 any such assets prior to the acquisition thereof, and extensions, renewals
 and replacements of any such Indebtedness that do not increase the
 outstanding principal amount thereof; provided that (i) such
 Indebtedness is incurred prior to or within ninety (90) days after such
 acquisition or the completion of such construction or improvement and (ii)
 the aggregate principal amount of Indebtedness permitted by this clause (e)
 shall not exceed $15,000,000 at any time outstanding; 

 
	
  

 	
  

 
	
  

 	
           (f)
 Indebtedness of the Company or any Subsidiary as an account party or a
 guarantor in respect of trade and performance letters of credit, bankers’
 acceptances, letters of guarantee and similar instruments, and obligations
 with respect to deposits and advances, all in the ordinary course of
 business; 

 
	
  

 	
  

 
	
  

 	
           (g)
 Indebtedness permitted under Sections 6.04(b) and 6.04(f); 

 
	
  

 	
  

 
	
  

 	
           (h)
 Indebtedness of the Company or any Subsidiary secured by a Lien on any asset
 of the Company or any Subsidiary (in addition to Indebtedness permitted by
 clauses (b) and (e) above); provided that the aggregate outstanding
 principal amount of Indebtedness permitted by this clause (h) shall not in
 the aggregate exceed $10,000,000 at any time; 

 
	
  

 	
  

 
	
  

 	
           (i)
 unsecured Indebtedness of the Company’s Subsidiaries in an aggregate
 principal amount not exceeding $15,000,000 at any time outstanding; 

 
	
  

 	
  

 
	
  

 	
           (j)
 Indebtedness secured by liens permitted by Section 6.02(c) so long as the
 aggregate outstanding principal amount of such Indebtedness does not exceed
 $15,000,000; and 

 

54

	
  

 	
  

 
	
  

 	
           (k)
 other unsecured Indebtedness of the Company so long as the Company is in
 compliance on a pro forma basis reasonably acceptable to the Administrative
 Agent with the covenants set forth in Section 6.11 both immediately before
 and after giving effect (including pro forma effect) to the incurrence
 thereof. 

 

                    SECTION
6.02. Liens. The Company will not, and will not permit any Subsidiary
to, create, incur, assume or permit to exist any Lien on any property or asset
now owned or hereafter acquired by it, or assign or sell any income or revenues
(including accounts receivable) or rights in respect of any thereof, except: 

	
  

 	
  

 
	
  

 	
           (a)
 Permitted Encumbrances; 

 
	
  

 	
  

 
	
  

 	
           (b)
 any Lien on any property or asset of the Company or any Subsidiary existing
 on the date hereof and set forth in Schedule 6.02; provided
 that (i) such Lien shall not apply to any other property or asset of the
 Company or any Subsidiary and (ii) such Lien shall secure only those
 obligations which it secures on the date hereof and extensions, renewals and
 replacements thereof that do not increase the outstanding principal amount
 thereof; 

 
	
  

 	
  

 
	
  

 	
           (c)
 any Lien existing on any property or asset prior to the acquisition thereof
 by the Company or any Subsidiary or existing on any property or asset of any
 Person that becomes a Subsidiary after the date hereof prior to the time such
 Person becomes a Subsidiary; provided that (i) such Lien is not
 created in contemplation of or in connection with such acquisition or such
 Person becoming a Subsidiary, as the case may be, (ii) such Lien shall not
 apply to any other property or assets of the Company or any Subsidiary and (iii)
 such Lien shall secure only those obligations which it secures on the date of
 such acquisition or the date such Person becomes a Subsidiary, as the case
 may be, and extensions, renewals and replacements thereof that do not
 increase the outstanding principal amount thereof; 

 
	
  

 	
  

 
	
  

 	
           (d)
 Liens on fixed or capital assets acquired, constructed or improved by the
 Company or any Subsidiary; provided that (i) such security interests
 secure Indebtedness permitted by clause (e) of Section 6.01, (ii) such
 security interests and the Indebtedness secured thereby are incurred prior to
 or within ninety (90) days after such acquisition or the completion of such
 construction or improvement, (iii) the Indebtedness secured thereby does not
 exceed the cost of acquiring, constructing or improving such fixed or capital
 assets and (iv) such security interests shall not apply to any other property
 or assets of the Company or any Subsidiary; 

 
	
  

 	
  

 
	
  

 	
           (e)
 Liens securing the Obligations, and any other Indebtedness created under, and
 in each case pursuant to, the Loan Documents; and 

 
	
  

 	
  

 
	
  

 	
           (f)
 Liens on assets of the Company and its Subsidiaries not otherwise permitted
 above so long as the aggregate principal amount of the Indebtedness subject
 to such Liens does not at any time exceed $10,000,000. 

 

                    SECTION
6.03. Fundamental Changes and Asset Sales. (a) The Company will not, and
will not permit any Subsidiary to, merge into or consolidate with any other
Person, or permit any other Person to merge into or consolidate with it, or
sell, transfer, lease or otherwise dispose of (in one transaction or in a
series of transactions) any of its assets, (including pursuant to a Sale and
Leaseback Transaction), or any of the Equity Interests of any of its
Subsidiaries (in each case, whether now owned or hereafter acquired), or
liquidate or dissolve, except that, if at the time thereof and immediately
after giving effect thereto no Default shall have occurred and be continuing: 

55

	
  

 	
  

 
	
  

 	
           (i)
 any Person may merge into the Company in a transaction in which the Company
 is the surviving corporation; 

 
	
  

 	
  

 
	
  

 	
           (ii)
 any Subsidiary may merge into a Loan Party in a transaction in which the
 surviving entity is such Loan Party (provided that any such merger involving
 the Company must result in the Company as the surviving entity); 

 
	
  

 	
  

 
	
  

 	
           (iii)
 any Subsidiary may sell, transfer, lease or otherwise dispose of its assets
 to a Loan Party; 

 
	
  

 	
  

 
	
  

 	
           (iv)
 the Company and its Subsidiaries may (A) sell inventory in the ordinary
 course of business, (B) effect sales, trade-ins or dispositions of used
 equipment for value in the ordinary course of business consistent with past
 practice, (C) enter into licenses of technology in the ordinary course of
 business, and (D) make any other sales, transfers, leases or dispositions
 that, together with all other property of the Company and its Subsidiaries
 previously leased, sold or disposed of as permitted by this clause (D) during
 any fiscal year of the Company, does not exceed $15,000,000; and 

 
	
  

 	
  

 
	
  

 	
           (v)
 any Subsidiary may liquidate or dissolve if the Company determines in good
 faith that such liquidation or dissolution is in the best interests of the
 Company and is not materially disadvantageous to the Lenders; provided
 that any such merger involving a Person that is not a wholly owned Subsidiary
 immediately prior to such merger shall not be permitted unless also permitted
 by Section 6.04. 

 
	
  

 	
  

 
	
                     (b)
 The Company will not, and will not permit any of its Subsidiaries to, engage
 to any material extent in any business other than businesses of the type
 conducted by the Company and its Subsidiaries on the date of execution of
 this Agreement and businesses reasonably related thereto. 

 
	
  

 	
  

 
	
                     (c)
 The Company will not, nor will it permit any of its Subsidiaries to, change
 its fiscal year from the basis in effect on the Effective Date. 

 

                    SECTION
6.04. Investments, Loans, Advances, Guarantees and Acquisitions. The
Company will not, and will not permit any of its Subsidiaries to, purchase,
hold or acquire (including pursuant to any merger with any Person that was not
a wholly owned Subsidiary prior to such merger) any capital stock, evidences of
indebtedness or other securities (including any option, warrant or other right
to acquire any of the foregoing) of, make or permit to exist any loans or
advances to, Guarantee any obligations of, or make or permit to exist any
investment or any other interest in, any other Person, or purchase or otherwise
acquire (in one transaction or a series of transactions) any Person or any
assets of any other Person constituting a business unit, except: 

	
  

 	
  

 
	
  

 	
           (a)
 Permitted Investments; 

 
	
  

 	
  

 
	
  

 	
           (b)
 Permitted Acquisitions (including any intercompany investments, loans and
 advances used to consummate Permitted Acquisitions); 

 
	
  

 	
  

 
	
  

 	
           (c)
 investments by the Company existing on the date hereof in the capital stock
 of its Subsidiaries; 

 
	
  

 	
  

 
	
  

 	
           (d)
 investments, loans or advances made by the Company in or to any Subsidiary
 (in addition to those specified in clauses (b) and (c) above) and
 investments, loans or advances made by any Subsidiary in or to the Company or
 any other Subsidiary (provided that not more than 

 

56

	
  

 	
  

 
	
  

 	
 $10,000,000
 in investments, loans or advances or capital contributions may be made and
 remain outstanding under this clause (d), during the term of this Agreement,
 by any Loan Party to a Subsidiary which is not a Loan Party); 

 
	
  

 	
  

 
	
  

 	
           (e)
 Guarantees constituting Indebtedness permitted by Section 6.01; and 

 
	
  

 	
  

 
	
  

 	
           (f)
 any other investment, loan or advance (other than acquisitions) so long as
 the aggregate amount of all such investments, loans and advances does not
 exceed $10,000,000 during the term of this Agreement. 

 

                    SECTION
6.05. Swap Agreements. The Company will not, and will not permit any of
its Subsidiaries to, enter into any Swap Agreement, except (a) Swap Agreements
entered into to hedge or mitigate risks to which the Company or any Subsidiary
has actual exposure (other than those in respect of Equity Interests of the
Company or any of its Subsidiaries), and (b) Swap Agreements entered into in
order to effectively cap, collar or exchange interest rates (from fixed to
floating rates, from one floating rate to another floating rate or otherwise)
with respect to any interest-bearing liability or investment of the Company or
any Subsidiary. 

                    SECTION
6.06. Transactions with Affiliates. The Company will not, and will not
permit any of its Subsidiaries to, sell, lease or otherwise transfer any
property or assets to, or purchase, lease or otherwise acquire any property or
assets from, or otherwise engage in any other transactions with, any of its
Affiliates, except (a) transactions in the ordinary course of business at
prices and on terms and conditions not less favorable to the Company or such
Subsidiary than could be obtained on an arm’s-length basis from unrelated third
parties, (b) transactions between or among the Company and its wholly owned
Subsidiaries not involving any other Affiliate and (c) transactions otherwise
permitted by this Agreement. 

                    SECTION
6.07. Restricted Payments. The Company will not, and will not permit any
of its Subsidiaries to, declare or make, or agree to pay or make, directly or
indirectly, any Restricted Payment, except (a) the Company may declare and pay
dividends with respect to its Equity Interests payable solely in additional
shares of its common stock, (b) Subsidiaries may declare and pay dividends
ratably with respect to their Equity Interests, (c) the Company may make
Restricted Payments pursuant to and in accordance with stock option plans or
other benefit plans for management or employees of the Company and its Subsidiaries
and (d) the Company and its Subsidiaries may make any other Restricted Payment
so long as no Default or Event of Default has occurred and is continuing prior
to making such Restricted Payment or would arise after giving effect (including
pro forma effect) thereto and the aggregate amount of such Restricted Payments
during any fiscal year of the Company does not exceed (i) $25,000,000, if at
the time of and immediately after giving effect thereto, the Leverage Ratio
(recomputed on a pro forma basis as if such Restricted Payment had occurred on
the last day of the most recently ended fiscal quarter of the Company for which
financial statements are available) is less than 3.00 to 1.00 but is greater
than or equal to 2.50 to 1.00 or (ii) $35,000,000, if at the time of and
immediately after giving effect thereto, the Leverage Ratio (recomputed on a
pro forma basis as if such Restricted Payment had occurred on the last day of
the most recently ended fiscal quarter of the Company for which financial
statements are available) is less than 2.50 to 1.00 but is greater than or
equal to 2.00 to 1.00; provided that, if at the time of and immediately
after giving effect thereto, the Leverage Ratio (recomputed on a pro forma
basis as if such Restricted Payment had occurred on the last day of the most
recently ended fiscal quarter of the Company for which financial statements are
available) is less than 2.00 to 1.00, there shall be no dollar limitation on
such Restricted Payments. 

                    SECTION
6.08. Restrictive Agreements. The Company will not, and will not permit
any of its Subsidiaries to, directly or indirectly, enter into, incur or permit
to exist any agreement or other 

57

arrangement
that prohibits, restricts or imposes any condition upon (a) the ability of the
Company or any Subsidiary to create, incur or permit to exist any Lien upon any
of its property or assets, or (b) the ability of any Subsidiary to pay
dividends or other distributions with respect to holders of its Equity
Interests or to make or repay loans or advances to the Company or any other
Subsidiary or to Guarantee Indebtedness of the Company or any other Subsidiary;
provided that (i) the foregoing shall not apply to restrictions and conditions
imposed by law or by any Loan Document, (ii) the foregoing shall not apply to
customary restrictions and conditions contained in agreements relating to the
sale of a Subsidiary pending such sale, provided such restrictions and
conditions apply only to the Subsidiary that is to be sold and such sale is
permitted hereunder, (iii) clause (a) of the foregoing shall not apply to
restrictions or conditions imposed by any agreement relating to secured
Indebtedness permitted by this Agreement if such restrictions or conditions
apply only to the property or assets securing such Indebtedness and (iv) clause
(a) of the foregoing shall not apply to customary provisions in leases and
other contracts restricting the assignment thereof.  

                    SECTION
6.09. Subordinated Indebtedness and Amendments to Subordinated Indebtedness
Documents. The Company will not, and will not permit any Subsidiary to,
directly or indirectly voluntarily prepay, defease or in substance defease,
purchase, redeem, retire or otherwise acquire, any Subordinated Indebtedness or
any Indebtedness from time to time outstanding under the Subordinated
Indebtedness Documents. Furthermore, the Company will not, and will not permit
any Subsidiary to, amend the Subordinated Indebtedness Documents relating to
any Subordinated Indebtedness or any document, agreement or instrument
evidencing any Indebtedness incurred pursuant to the Subordinated Indebtedness
Documents (or any replacements, substitutions, extensions or renewals thereof)
or pursuant to which such Indebtedness is issued where such amendment,
modification or supplement amends, modifies or adds any provision thereof in a
manner which (i) when taken as a whole, is materially adverse to the Company,
any Subsidiary and/or the Lenders or (ii) is more onerous than the existing
applicable provision in the Subordinated Indebtedness Documents or the
applicable provision in this Agreement (except in each case to the extent
permitted under the applicable subordination agreement governing such
Subordinated Indebtedness). 

                    SECTION
6.10. Sale and Leaseback Transactions. The Company shall not, nor shall
it permit any Subsidiary to, enter into any Sale and Leaseback Transaction,
other than Sale and Leaseback Transactions in respect of which the net cash
proceeds received in connection therewith does not exceed $50,000,000 in the
aggregate during the term of this Agreement, determined on a consolidated basis
for the Company and its Subsidiaries. 

                    SECTION
6.11. Financial Covenants. (a) Maximum Leverage Ratio. The Company will
not permit the ratio (the “Leverage Ratio”), determined as of the end of
each of its fiscal quarters ending on and after September 29, 2012, of (i)
Consolidated Total Indebtedness to (ii) Consolidated EBITDA for the period of
four (4) consecutive fiscal quarters ending with the end of such fiscal
quarter, all calculated for the Company and its Subsidiaries on a consolidated
basis, to be greater than 3.00 to 1.00. 

                    (b)
Minimum Interest Coverage Ratio. The Company will not permit the ratio
(the “Interest Coverage Ratio”), determined as of the end of each of its
fiscal quarters ending on and after September 29, 2012, of (i) Consolidated
EBITDA to (ii) Consolidated Interest Expense, in each case for the period of
four (4) consecutive fiscal quarters ending with the end of such fiscal
quarter, all calculated for the Company and its Subsidiaries on a consolidated
basis, to be less than 3.00 to 1.00. 

ARTICLE VII

Events of Default

58

	
  

 	
  

 
	
  

 	
           If
any of the following events (“Events of Default”) shall occur:  

 

	
  

 	
  

 
	
  

 	
                     (a)
 any Borrower shall fail to pay any principal of any Loan or any reimbursement
 obligation in respect of any LC Disbursement when and as the same shall
 become due and payable, whether at the due date thereof or at a date fixed
 for prepayment thereof or otherwise; 

 
	
  

 	
  

 
	
  

 	
                     (b)
 any Borrower shall fail to pay any interest on any Loan or any fee or any
 other amount (other than an amount referred to in clause (a) of this Article)
 payable under this Agreement, when and as the same shall become due and
 payable, and such failure shall continue unremedied for a period of three (3)
 Business Days; 

 
	
  

 	
  

 
	
  

 	
                     (c)
 any representation or warranty made or deemed made by or on behalf of any
 Borrower or any Subsidiary in or in connection with this Agreement or any
 other Loan Document or any amendment or modification hereof or thereof or
 waiver hereunder or thereunder, or in any report, certificate, financial
 statement or other document furnished pursuant to or in connection with this
 Agreement or any other Loan Document or any amendment or modification thereof
 or waiver thereunder, shall prove to have been incorrect in any material
 respect when made or deemed made; 

 
	
  

 	
  

 
	
  

 	
                     (d)
 any Borrower shall fail to observe or perform any covenant, condition or
 agreement contained in Section 5.02, 5.03 (with respect to any Borrower’s
 existence), 5.08 or 5.09, in Article VI or in Article X; 

 
	
  

 	
  

 
	
  

 	
                     (e)
 any Borrower or any Subsidiary Guarantor, as applicable, shall fail to
 observe or perform any covenant, condition or agreement contained in this
 Agreement (other than those specified in clause (a), (b) or (d) of this
 Article) or any other Loan Document, and such failure shall continue
 unremedied for a period of thirty (30) days after notice thereof from the
 Administrative Agent to the Company (which notice will be given at the
 request of any Lender); 

 
	
  

 	
  

 
	
  

 	
                     (f)
 the Company or any Subsidiary shall fail to make any payment (whether of
 principal or interest and regardless of amount) in respect of any Material
 Indebtedness, when and as the same shall become due and payable; 

 
	
  

 	
  

 
	
  

 	
                     (g)
 any event or condition occurs that results in any Material Indebtedness
 becoming due prior to its scheduled maturity or that enables or permits (with
 or without the giving of notice, the lapse of time or both) the holder or
 holders of any Material Indebtedness or any trustee or agent on its or their
 behalf to cause any Material Indebtedness to become due, or to require the
 prepayment, repurchase, redemption or defeasance thereof, prior to its
 scheduled maturity; provided that this clause (g) shall not apply to
 secured Indebtedness that becomes due as a result of the voluntary sale or
 transfer of the property or assets securing such Indebtedness; 

 
	
  

 	
  

 
	
  

 	
                     (h)
 an involuntary proceeding shall be commenced or an involuntary petition shall
 be filed seeking (i) liquidation, reorganization or other relief in respect
 of any Borrower or any Material Subsidiary or its debts, or of a substantial
 part of its assets, under any Federal, state or foreign bankruptcy,
 insolvency, receivership or similar law now or hereafter in effect or (ii)
 the appointment of a receiver, trustee, custodian, sequestrator, conservator
 or similar official for any Borrower or any Material Subsidiary or for a
 substantial part of its assets, and, in any such case, such proceeding or
 petition shall continue undismissed for 60 days or an order or decree
 approving or ordering any of the foregoing shall be entered; 

 

59

	
  

 	
  

 
	
  

 	
                     (i)
 any Borrower or any Material Subsidiary shall (i) voluntarily commence any
 proceeding or file any petition seeking liquidation, reorganization or other
 relief under any Federal, state or foreign bankruptcy, insolvency,
 receivership or similar law now or hereafter in effect, (ii) consent to the
 institution of, or fail to contest in a timely and appropriate manner, any
 proceeding or petition described in clause (h) of this Article, (iii) apply
 for or consent to the appointment of a receiver, trustee, custodian,
 sequestrator, conservator or similar official for any Borrower or any
 Material Subsidiary or for a substantial part of its assets, (iv) file an answer
 admitting the material allegations of a petition filed against it in any such
 proceeding, (v) make a general assignment for the benefit of creditors or
 (vi) take any action for the purpose of effecting any of the foregoing; 

 
	
  

 	
  

 
	
  

 	
                     (j)
 any Borrower or any Material Subsidiary shall become unable, admit in writing
 its inability or fail generally to pay its debts as they become due; 

 
	
  

 	
  

 
	
  

 	
                     (k)
 one or more judgments for the payment of money in an aggregate amount in excess
 of $10,000,000 shall be rendered against the Company, any Subsidiary or any
 combination thereof and the same shall remain undischarged for a period of
 thirty (30) consecutive days during which execution shall not be effectively
 stayed, or any action shall be legally taken by a judgment creditor to attach
 or levy upon any assets of the Company or any Subsidiary to enforce any such
 judgment; 

 
	
  

 	
  

 
	
  

 	
                     (l)
 an ERISA Event shall have occurred that, in the opinion of the Required
 Lenders, when taken together with all other ERISA Events that have occurred,
 could reasonably be expected to result in a Material Adverse Effect; 

 
	
  

 	
  

 
	
  

 	
                     (m)
 a Change in Control shall occur; 

 
	
  

 	
  

 
	
  

 	
                     (n)
 the occurrence of any “default”, as defined in any Loan Document (other than
 this Agreement) or the breach of any of the terms or provisions of any Loan
 Document (other than this Agreement), which default or breach continues
 beyond any period of grace therein provided; or 

 
	
  

 	
  

 
	
  

 	
                     (o)
 the obligations of any Loan Party under any material provision of any Loan
 Document for any reason ceases to be valid, binding and enforceable in
 accordance with such provision (or the Company or any Subsidiary shall
 challenge the enforceability of any Loan Document or shall assert in writing,
 or engage in any action or inaction based on any such assertion, that any
 provision of any of the Loan Documents has ceased to be or otherwise is not
 valid, binding and enforceable in accordance with its terms); 

 

then,
and in every such event (other than an event with respect to the Company
described in clause (h) or (i) of this Article), and at any time thereafter
during the continuance of such event, the Administrative Agent may, and at the
request of the Required Lenders shall, by notice to the Company, take either or
both of the following actions, at the same or different times: (i) terminate
the Commitments, and thereupon the Commitments shall terminate immediately, and
(ii) declare the Loans then outstanding to be due and payable in whole (or in
part, in which case any principal not so declared to be due and payable may
thereafter be declared to be due and payable), and thereupon the principal of
the Loans so declared to be due and payable, together with accrued interest
thereon and all fees and other Obligations of the Borrowers accrued hereunder
and under the other Loan Documents, shall become due and payable immediately,
without presentment, demand, protest or other notice of any kind, all of which
are hereby waived by the Borrowers; and in case of any event with respect to
any Borrower described in clause (h) or (i) of this Article, the Commitments
shall automatically terminate and the principal of the Loans then 

60

outstanding,
together with accrued interest thereon and all fees and other Obligations
accrued hereunder and under the other Loan Documents, shall automatically
become due and payable, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by the Borrowers. Upon the occurrence
and during the continuance of an Event of Default, the Administrative Agent
may, and at the request of the Required Lenders shall, exercise any rights and
remedies provided to the Administrative Agent under the Loan Documents or at
law or equity. 

ARTICLE VIII

The Administrative Agent

                    Each
of the Lenders and the Issuing Banks hereby irrevocably appoints the
Administrative Agent as its agent and authorizes the Administrative Agent to
take such actions on its behalf, including execution of the other Loan
Documents, and to exercise such powers as are delegated to the Administrative
Agent by the terms of the Loan Documents, together with such actions and powers
as are reasonably incidental thereto. 

                    The
bank serving as the Administrative Agent hereunder shall have the same rights
and powers in its capacity as a Lender as any other Lender and may exercise the
same as though it were not the Administrative Agent, and such bank and its Affiliates
may accept deposits from, lend money to and generally engage in any kind of
business with Company or any Subsidiary or other Affiliate thereof as if it
were not the Administrative Agent hereunder. 

                    The
Administrative Agent shall not have any duties or obligations except those
expressly set forth in the Loan Documents. Without limiting the generality of
the foregoing, (a) the Administrative Agent shall not be subject to any
fiduciary or other implied duties, regardless of whether a Default has occurred
and is continuing, (b) the Administrative Agent shall not have any duty to take
any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated by the Loan Documents
that the Administrative Agent is required to exercise in writing as directed by
the Required Lenders (or such other number or percentage of the Lenders as
shall be necessary under the circumstances as provided in Section 9.02), and
(c) except as expressly set forth in the Loan Documents, the Administrative
Agent shall not have any duty to disclose, and shall not be liable for the
failure to disclose, any information relating to the Company or any of its
Subsidiaries that is communicated to or obtained by the bank serving as
Administrative Agent or any of its Affiliates in any capacity. The
Administrative Agent shall not be liable for any action taken or not taken by
it with the consent or at the request of the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary under the
circumstances as provided in Section 9.02) or in the absence of its own gross
negligence or willful misconduct. The Administrative Agent shall be deemed not
to have knowledge of any Default unless and until written notice thereof is
given to the Administrative Agent by the Company or a Lender, and the
Administrative Agent shall not be responsible for or have any duty to ascertain
or inquire into (i) any statement, warranty or representation made in or in
connection with any Loan Document, (ii) the contents of any certificate, report
or other document delivered hereunder or in connection with any Loan Document,
(iii) the performance or observance of any of the covenants, agreements or
other terms or conditions set forth in any Loan Document, (iv) the validity,
enforceability, effectiveness or genuineness of any Loan Document or any other
agreement, instrument or document or (v) the satisfaction of any condition set
forth in Article IV or elsewhere in any Loan Document, other than to confirm
receipt of items expressly required to be delivered to the Administrative
Agent. 

                    The
Administrative Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine
and to have been signed or sent by the proper Person. The 

61

Administrative Agent also may rely upon any statement made to it orally
or by telephone and believed by it to be made by the proper Person, and shall
not incur any liability for relying thereon. The Administrative Agent may
consult with legal counsel (who may be counsel for the Company), independent
accountants and other experts selected by it, and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such
counsel, accountants or experts. 

                    The
Administrative Agent may perform any and all its duties and exercise its rights
and powers by or through any one or more sub-agents appointed by the
Administrative Agent. The Administrative Agent and any such sub-agent may
perform any and all its duties and exercise its rights and powers through their
respective Related Parties. The exculpatory provisions of the preceding
paragraphs shall apply to any such sub-agent and to the Related Parties of the
Administrative Agent and any such sub-agent, and shall apply to their
respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent. 

                    Subject
to the appointment and acceptance of a successor Administrative Agent as
provided in this paragraph, the Administrative Agent may resign at any time by
notifying the Lenders, the Issuing Banks and the Company. Upon any such
resignation, the Required Lenders shall have the right, in consultation with
the Company, to appoint a successor. If no successor shall have been so
appointed by the Required Lenders and shall have accepted such appointment
within 30 days after the retiring Administrative Agent gives notice of its
resignation, then the retiring Administrative Agent may, on behalf of the
Lenders and the Issuing Banks, appoint a successor Administrative Agent which
shall be a bank with an office in New York, New York, or an Affiliate of any
such bank. Upon the acceptance of its appointment as Administrative Agent
hereunder by a successor, such successor shall succeed to and become vested
with all the rights, powers, privileges and duties of the retiring
Administrative Agent, and the retiring Administrative Agent shall be discharged
from its duties and obligations hereunder. The fees payable by any Borrower to
a successor Administrative Agent shall be the same as those payable to its
predecessor unless otherwise agreed between such Borrower and such successor.
After the Administrative Agent’s resignation hereunder, the provisions of this
Article and Section 9.03 shall continue in effect for the benefit of such
retiring Administrative Agent, its sub-agents and their respective Related
Parties in respect of any actions taken or omitted to be taken by any of them
while it was acting as Administrative Agent. 

                    Each
Lender acknowledges and agrees that the extensions of credit made hereunder are
commercial loans and letters of credit and not investments in a business
enterprise or securities. Each Lender further represents that it is engaged in
making, acquiring or holding commercial loans in the ordinary course of its
business and has, independently and without reliance upon the Administrative
Agent or any other Lender and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into
this Agreement as a Lender, and to make, acquire or hold Loans hereunder. Each
Lender shall, independently and without reliance upon the Administrative Agent
or any other Lender and based on such documents and information (which may
contain material, non-public information within the meaning of the United
States securities laws concerning the Company and its Affiliates) as it shall
from time to time deem appropriate, continue to make its own decisions in
taking or not taking action under or based upon this Agreement, any related
agreement or any document furnished hereunder or thereunder and in deciding
whether or to the extent to which it will continue as a lender or assign or
otherwise transfer its rights, interests and obligations hereunder. 

                    None
of the Lenders, if any, identified in this Agreement as a Syndication Agent or
Co-Documentation Agent shall have any right, power, obligation, liability,
responsibility or duty under this Agreement other than those applicable to all
Lenders as such. Without limiting the foregoing, none of such Lenders shall
have or be deemed to have a fiduciary relationship with any Lender. Each Lender
hereby makes the same acknowledgments with respect to the relevant Lenders in
their respective 

62

capacities as Syndication Agent or Co-Documentation Agents, as
applicable, as it makes with respect to the Administrative Agent in the
preceding paragraph. 

ARTICLE IX

Miscellaneous

                    SECTION
9.01. Notices. (a) Except in the case of notices and other communications
expressly permitted to be given by telephone (and subject to paragraph (b)
below), all notices and other communications provided for herein shall be in writing
and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by telecopy, as follows: 

	
  

 	
  

 
	
  

 	
           (i) if to
 any Borrower, to it c/o MTS Systems Corporation, 14000 Technology Drive, Eden
 Prairie, Minnesota 55344, Attention of Andy Cebulla, Treasurer (Telecopy No.
 (952) 937-4515; Telephone No. (952) 937-4020); 

 
	
  

 	
  

 
	
  

 	
           (ii) if
 to the Administrative Agent, (A) in the case of Borrowings denominated in
 Dollars, to JPMorgan Chase Bank, N.A., 10 South Dearborn Street, 7th
 Floor, Chicago, Illinois 60603, Attention of Darren Cunningham (Telecopy No.
 (888) 292-9533) and (B) in the case of Borrowings denominated in Foreign
 Currencies, to J.P. Morgan Europe Limited, 25 Bank Street, Canary Wharf,
 London E14 5JP, Attention of The Manager, Loan & Agency Services
 (Telecopy No. 44 207 777 2360), and in each case with a copy to JPMorgan
 Chase Bank, N.A., 10 South Dearborn Street, Chicago, Illinois 60603,
 Attention of Krys Szremski (Telecopy No. (312) 325-3239); 

 
	
  

 	
  

 
	
  

 	
           (iii) if
 to an Issuing Bank, to it at (A) JPMorgan Chase Bank, N.A., 10 South Dearborn
 Street, 7th Floor, Chicago, Illinois 60603, Attention of Darren
 Cunningham (Telecopy No. (888) 292-9533) and (B) in the case of any other
 Issuing Bank, to it at the address and telecopy number specified from time to
 time by such Issuing Bank to the Company and the Administrative Agent; 

 
	
  

 	
  

 
	
  

 	
           (iv) if
 to the Swingline Lender, to it at JPMorgan Chase Bank, N.A., 10 South
 Dearborn Street, 7th Floor, Chicago, Illinois 60603, Attention of
 Darren Cunningham (Telecopy No. (888) 292-9533); and 

 
	
  

 	
  

 
	
  

 	
           (v) if to
 any other Lender, to it at its address (or telecopy number) set forth in its
 Administrative Questionnaire. 

 

                    (b)
Notices and other communications to the Lenders hereunder may be delivered or
furnished by electronic communications pursuant to procedures approved by the
Administrative Agent; provided that the foregoing shall not apply to notices
pursuant to Article II unless otherwise agreed by the Administrative Agent and
the applicable Lender. The Administrative Agent or the Company may, in its
discretion, agree to accept notices and other communications to it hereunder by
electronic communications pursuant to procedures approved by it; provided
that approval of such procedures may be limited to particular notices or
communications.  

                    (c)
Any party hereto may change its address or telecopy number for notices and
other communications hereunder by notice to the other parties hereto. All
notices and other communications given to any party hereto in accordance with
the provisions of this Agreement shall be deemed to have been given on the date
of receipt. 

63

                    SECTION
9.02. Waivers; Amendments. (a) No failure or delay by the Administrative
Agent, any Issuing Bank or any Lender in exercising any right or power
hereunder or under any other Loan Document shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Administrative Agent, the
Issuing Banks and the Lenders hereunder and under the other Loan Documents are
cumulative and are not exclusive of any rights or remedies that they would
otherwise have. No waiver of any provision of any Loan Document or consent to
any departure by any Borrower therefrom shall in any event be effective unless
the same shall be permitted by paragraph (b) of this Section, and then such
waiver or consent shall be effective only in the specific instance and for the
purpose for which given. Without limiting the generality of the foregoing, the
making of a Loan or issuance of a Letter of Credit shall not be construed as a
waiver of any Default, regardless of whether the Administrative Agent, any
Lender or any Issuing Bank may have had notice or knowledge of such Default at
the time. 

                    (b)
Except as provided in Section 2.20 with respect to an Incremental Term Loan
Amendment, neither this Agreement nor any provision hereof may be waived,
amended or modified except pursuant to an agreement or agreements in writing entered
into by the Borrowers and the Required Lenders or by the Borrowers and the
Administrative Agent with the consent of the Required Lenders; provided that no
such agreement shall (i) increase the Commitment of any Lender without the
written consent of such Lender, (ii) reduce the principal amount of any Loan or
LC Disbursement or reduce the rate of interest thereon, or reduce any fees
payable hereunder, without the written consent of each Lender directly affected
thereby, (iii) postpone the scheduled date of payment of the principal amount
of any Loan or LC Disbursement, or any interest thereon, or any fees payable
hereunder, or reduce the amount of, waive or excuse any such payment, or
postpone the scheduled date of expiration of any Commitment, without the
written consent of each Lender directly affected thereby, (iv) change Section
2.18(b) or (c) in a manner that would alter the pro rata sharing of payments
required thereby, without the written consent of each Lender, (v) change any of
the provisions of this Section or the definition of “Required Lenders” or any
other provision hereof specifying the number or percentage of Lenders required
to waive, amend or modify any rights hereunder or make any determination or
grant any consent hereunder, without the written consent of each Lender (it
being understood that, solely with the consent of the parties prescribed by
Section 2.20 to be parties to an Incremental Term Loan Amendment, Incremental
Term Loans may be included in the determination of Required Lenders on
substantially the same basis as the Commitments and the Revolving Loans are
included on the Effective Date) or (vi) release the Company from its
obligations under Article X or release all or substantially all of the
Subsidiary Guarantors from their obligations under the Subsidiary Guaranty, in
each case, without the written consent of each Lender; provided further that no
such agreement shall amend, modify or otherwise affect the rights or duties of
the Administrative Agent, any Issuing Bank or the Swingline Lender hereunder
without the prior written consent of the Administrative Agent, such Issuing
Bank or the Swingline Lender, as the case may be (it being understood that any
change to Section 2.25 shall require the consent of the Administrative Agent,
each Issuing Bank and the Swingline Lender). Notwithstanding the foregoing, no
consent with respect to any amendment, waiver or other modification of this
Agreement shall be required of any Defaulting Lender, except with respect to
any amendment, waiver or other modification referred to in clause (i), (ii) or
(iii) of the first proviso of this paragraph and then only in the event such
Defaulting Lender shall be affected by such amendment, waiver or other
modification.  

                    (c)
Notwithstanding the foregoing, this Agreement and any other Loan Document may
be amended (or amended and restated) with the written consent of the Required
Lenders, the Administrative Agent and each Borrower (x) to add one or more
credit facilities (in addition to the Incremental Term Loans pursuant to an
Incremental Term Loan Amendment) to this Agreement and to permit extensions of
credit from time to time outstanding thereunder and the accrued interest and
fees in 

64

respect thereof to share ratably in the benefits of this Agreement and
the other Loan Documents with the Revolving Loans, Incremental Term Loans and
the accrued interest and fees in respect thereof and (y) to include
appropriately the Lenders holding such credit facilities in any determination
of the Required Lenders and Lenders. 

                    (d)
If, in connection with any proposed amendment, waiver or consent requiring the
consent of “each Lender” or “each Lender directly affected thereby,” the
consent of the Required Lenders is obtained, but the consent of other necessary
Lenders is not obtained (any such Lender whose consent is necessary but not
obtained being referred to herein as a “Non-Consenting Lender”), then the
Company may elect to replace a Non-Consenting Lender as a Lender party to this
Agreement, provided that, concurrently with such replacement, (i) another bank
or other entity which is reasonably satisfactory to the Company and the
Administrative Agent shall agree, as of such date, to purchase for cash the
Loans and other Obligations due to the Non-Consenting Lender pursuant to an
Assignment and Assumption and to become a Lender for all purposes under this
Agreement and to assume all obligations of the Non-Consenting Lender to be
terminated as of such date and to comply with the requirements of clause (b) of
Section 9.04, and (ii) such Non-Consenting Lender shall have received in same
day funds on the day of such replacement (1) all interest, fees and other
amounts then accrued but unpaid to such Non-Consenting Lender by such Borrower
hereunder to and including the date of termination, including without
limitation payments due to such Non-Consenting Lender under Sections 2.15 and
2.17, and (2) an amount, if any, equal to the payment which would have been due
to such Lender on the day of such replacement under Section 2.16 had the Loans
of such Non-Consenting Lender been prepaid on such date rather than sold to the
replacement Lender.  

                    (e)
Notwithstanding anything to the contrary herein the Administrative Agent may, with
the consent of the Borrowers only, amend, modify or supplement this Agreement
or any of the other Loan Documents to cure any ambiguity, omission, mistake,
defect or inconsistency. 

                    SECTION
9.03. Expenses; Indemnity; Damage Waiver. (a) The Company shall pay (i)
all reasonable out-of-pocket expenses incurred by the Administrative Agent and
its Affiliates, including the reasonable fees, charges and disbursements of
counsel for the Administrative Agent, in connection with the syndication and
distribution (including, without limitation, via the internet or through a
service such as Intralinks) of the credit facilities provided for herein, the
preparation and administration of this Agreement and the other Loan Documents
or any amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), (ii) all reasonable out-of-pocket expenses incurred by any
Issuing Bank in connection with the issuance, amendment, renewal or extension
of any Letter of Credit or any demand for payment thereunder and (iii) all
out-of-pocket expenses incurred by the Administrative Agent, any Issuing Bank
or any Lender, including the fees, charges and disbursements of any counsel for
the Administrative Agent, any Issuing Banks or any Lender, in connection with
the enforcement or protection of its rights in connection with this Agreement
and any other Loan Document, including its rights under this Section, or in
connection with the Loans made or Letters of Credit issued hereunder, including
all such out-of-pocket expenses incurred during any workout, restructuring or
negotiations in respect of such Loans or Letters of Credit. 

                    (b)
The Company shall indemnify the Administrative Agent, each Issuing Bank and
each Lender, and each Related Party of any of the foregoing Persons (each such
Person being called an “Indemnitee”) against, and hold each Indemnitee harmless
from, any and all losses, claims, damages, liabilities and related expenses,
including the fees, charges and disbursements of any counsel for any
Indemnitee, incurred by or asserted against any Indemnitee arising out of, in
connection with, or as a result of (i) the execution or delivery of any Loan
Document or any agreement or instrument contemplated thereby, the performance
by the parties hereto of their respective obligations thereunder or  

65

the consummation of the Transactions or any other transactions
contemplated hereby, (ii) any Loan or Letter of Credit or the use of the
proceeds therefrom (including any refusal by any Issuing Bank to honor a demand
for payment under a Letter of Credit if the documents presented in connection
with such demand do not strictly comply with the terms of such Letter of Credit),
(iii) any actual or alleged presence or release of Hazardous Materials on or
from any property owned or operated by the Company or any of its Subsidiaries,
or any Environmental Liability related in any way to the Company or any of its
Subsidiaries, or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory, whether brought by a third party or by the
Company or any of its Subsidiaries, and regardless of whether any Indemnitee is
a party thereto; provided that such indemnity shall not, as to any Indemnitee,
be available to the extent that such losses, claims, damages, liabilities or
related expenses are determined by a court of competent jurisdiction by final
and nonappealable judgment to have resulted from (x) the gross negligence or
willful misconduct of such Indemnitee or (y) the material breach in bad faith
by such Indemnitee of its express obligations under this Agreement pursuant to
a claim initiated by the Company. This Section 9.03(b) shall not apply with
respect to Taxes other than any Taxes that represent losses, claims or damages
arising from any non-Tax claim.  

                    (c)
To the extent that the Company fails to pay any amount required to be paid by
it to the Administrative Agent, any Issuing Bank or the Swingline Lender under
paragraph (a) or (b) of this Section, each Lender severally agrees to pay to
the Administrative Agent, any Issuing Bank or the Swingline Lender, as the case
may be, such Lender’s Applicable Percentage (determined as of the time that the
applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount (it being understood that the Company’s failure to pay any such amount
shall not relieve the Company of any default in the payment thereof); provided
that the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against the
Administrative Agent, any Issuing Bank or the Swingline Lender in its capacity
as such. 

                    (d)
To the extent permitted by applicable law, no Borrower shall assert, and each
Borrower hereby waives, any claim against any Indemnitee (i) for any damages
arising from the use by others of information or other materials obtained
through telecommunications, electronic or other information transmission
systems (including the Internet), or (ii) on any theory of liability, for
special, indirect, consequential or punitive damages (as opposed to direct or
actual damages) arising out of, in connection with, or as a result of, this
Agreement, any other Loan Document or any agreement or instrument contemplated
hereby or thereby, the Transactions, any Loan or Letter of Credit or the use of
the proceeds thereof. 

                    (e)
All amounts due under this Section shall be payable not later than fifteen (15)
days after written demand therefor. 

                    SECTION
9.04. Successors and Assigns. (a) The provisions of this Agreement shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby (including any Affiliate of
the relevant Issuing Bank that issues any Letter of Credit), except that (i) no
Borrower may assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by any Borrower without such consent shall be null and
void) and (ii) no Lender may assign or otherwise transfer its rights or
obligations hereunder except in accordance with this Section. Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns
permitted hereby (including any Affiliate of the relevant Issuing Bank that
issues any Letter of Credit), Participants (to the extent provided in paragraph
(c) of this Section) and, to the extent expressly contemplated hereby, the
Related Parties of each of the Administrative Agent, the 

66

Issuing Banks and the Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement. 

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

	
  

 	
  

 
	
  

 	
           (A) the
Company (provided that the Company shall be deemed to have consented to any
such assignment unless it shall object thereto by written notice to the
Administrative Agent within five (5) Business Days after having received
notice thereof); provided further, that no consent of the Company shall be
required for an assignment to a Lender, an Affiliate of a Lender, an Approved
Fund or, if an Event of Default has occurred and is continuing, any other
assignee; and  

 
	
  

 	
  

 
	
  

 	
           (B) the
 Administrative Agent. 

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (A)
except in the case of an assignment to a Lender or an Affiliate of a Lender
or an Approved Fund or an assignment of the entire remaining amount of the
assigning Lender’s Commitment or Loans of any Class, the amount of the
Commitment or Loans of the assigning Lender subject to each such assignment
(determined as of the date the Assignment and Assumption with respect to such
assignment is delivered to the Administrative Agent) shall not be less than
$5,000,000 unless each of the Company and the Administrative Agent otherwise
consent, provided that no such consent of the Company shall be required if an
Event of Default has occurred and is continuing;  

 
	
  

 	
  

 
	
  

 	
           (B) each
 partial assignment shall be made as an assignment of a proportionate part of
 all the assigning Lender’s rights and obligations under this Agreement,
 provided that this clause shall not be construed to prohibit the assignment
 of a proportionate part of all the assigning Lender’s rights and obligations
 in respect of one Class of Commitments or Loans; 

 
	
  

 	
  

 
	
  

 	
           (C) the
 parties to each assignment shall execute and deliver to the Administrative
 Agent an Assignment and Assumption, together with a processing and
 recordation fee of $3,500, such fee to be paid by either the assigning Lender
 or the assignee Lender or shared between such Lenders; and 

 
	
  

 	
  

 
	
  

 	
           (D) the
 assignee, if it shall not be a Lender, shall deliver to the Administrative
 Agent an Administrative Questionnaire in which the assignee designates one or
 more credit contacts to whom all syndicate-level information (which may
 contain material non-public information about the Company and its affiliates
 and their Related Parties or their respective securities) will be made
 available and who may receive such information in accordance with the
 assignee’s compliance procedures and applicable laws, including Federal and
 state securities laws. 

 

                    For
the purposes of this Section 9.04(b), the term “Approved Fund” has the
following meaning:  

                    “Approved Fund”
means any Person (other than a natural person) that is engaged in making,
purchasing, holding or investing in bank loans and similar extensions of credit
in the ordinary course of its business and that is administered or managed by
(a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of
an entity that administers or manages a Lender.  

67

	
  

 	
  

 
	
  

 	
           (iii)
 Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of
 this Section, from and after the effective date specified in each Assignment
 and Assumption the assignee thereunder shall be a party hereto and, to the
 extent of the interest assigned by such Assignment and Assumption, have the
 rights and obligations of a Lender under this Agreement, and the assigning
 Lender thereunder shall, to the extent of the interest assigned by such
 Assignment and Assumption, be released from its obligations under this
 Agreement (and, in the case of an Assignment and Assumption covering all of
 the assigning Lender’s rights and obligations under this Agreement, such
 Lender shall cease to be a party hereto but shall continue to be entitled to
 the benefits of Sections 2.15, 2.16, 2.17 and 9.03). Any assignment or
 transfer by a Lender of rights or obligations under this Agreement that does
 not comply with this Section 9.04 shall be treated for purposes of this
 Agreement as a sale by such Lender of a participation in such rights and
 obligations in accordance with paragraph (c) of this Section. 

 
	
  

 	
  

 
	
  

 	
           (iv) The
Administrative Agent, acting for this purpose as an agent of each Borrower,
shall maintain at one of its offices a copy of each Assignment and Assumption
delivered to it and a register for the recordation of the names and addresses
of the Lenders, and the Commitment of, and principal amount (and stated
interest) of the Loans and LC Disbursements owing to, each Lender pursuant to
the terms hereof from time to time (the “Register”). The entries in the
Register shall be conclusive, and the Borrowers, the Administrative Agent,
the Issuing Banks and the Lenders shall treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder
for all purposes of this Agreement, notwithstanding notice to the contrary.
The Register shall be available for inspection by the Company, any Issuing
Bank and any Lender, at any reasonable time and from time to time upon
reasonable prior notice.  

 
	
  

 	
  

 
	
  

 	
           (v) Upon
its receipt of a duly completed Assignment and Assumption executed by an
assigning Lender and an assignee, the assignee’s completed Administrative
Questionnaire (unless the assignee shall already be a Lender hereunder), the
processing and recordation fee referred to in paragraph (b) of this Section
and any written consent to such assignment required by paragraph (b) of this
Section, the Administrative Agent shall accept such Assignment and Assumption
and record the information contained therein in the Register; provided that
if either the assigning Lender or the assignee shall have failed to make any
payment required to be made by it pursuant to Section 2.05(c), 2.06(d) or
(e), 2.07(b), 2.18(d) or 9.03(c), the Administrative Agent shall have no
obligation to accept such Assignment and Assumption and record the
information therein in the Register unless and until such payment shall have
been made in full, together with all accrued interest thereon. No assignment
shall be effective for purposes of this Agreement unless it has been recorded
in the Register as provided in this paragraph.  

 
	
  

 	
  

 
	
  

 	
           (a) Any
Lender may, without the consent of any Borrower, the Administrative Agent,
the Issuing Banks or the Swingline Lender, sell participations to one or more
banks or other entities (a “Participant”) in all or a portion of such
Lender’s rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans owing to it); provided that (A) such
Lender’s obligations under this Agreement shall remain unchanged, (B) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (C) the Borrowers, the Administrative
Agent, the Issuing Banks and the other Lenders shall continue to deal solely
and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement. Any agreement or instrument pursuant to
which a Lender sells such a participation shall provide that such Lender
shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement;
provided that such agreement or instrument may provide that such Lender will
not, without the consent of the Participant, agree to any amendment,
modification or waiver described in the first proviso to Section 9.02(b) that
affects such Participant. Each  

 

68

	
  

 	
  

 
	
  

 	
 Borrower agrees that each Participant shall be entitled to the
 benefits of Sections 2.15, 2.16 and 2.17 (subject to the requirements and
 limitations therein, including the requirements under Section 2.17(f) (it
 being understood that the documentation required under Section 2.17(f) shall
 be delivered to the participating Lender)) to the same extent as if it were a
 Lender and had acquired its interest by assignment pursuant to paragraph (b)
 of this Section; provided that such Participant (A) agrees to be subject to
 the provisions of Sections 2.18 and 2.19 as if it were an assignee under
 paragraph (b) of this Section; and (B) shall not be entitled to receive any
 greater payment under Sections 2.15 or 2.17, with respect to any
 participation, than its participating Lender would have been entitled to
 receive, except to the extent such entitlement to receive a greater payment
 results from a Change in Law that occurs after the Participant acquired the
 applicable participation. To the extent permitted by law, each Participant
 also shall be entitled to the benefits of Section 9.08 as though it were a
 Lender, provided such Participant agrees to be subject to Section 2.18(c) as
 though it were a Lender. Each Lender that sells a participation shall, acting
 solely for this purpose as an agent of the Borrowers, maintain a register on
 which it enters the name and address of each Participant and the principal
 amounts (and stated interest) of each Participant’s interest in the Loans or
 other obligations under the Loan Documents (the “Participant Register”);
 provided that no Lender shall have any obligation to disclose all or
 any portion of the Participant Register (including the identity of any
 Participant or any information relating to a Participant’s interest in any
 Commitments, Loans, Letters of Credit or its other obligations under any Loan
 Document) to any Person except to the extent that such disclosure is
 necessary to establish that such Commitment, Loan, Letter of Credit or other
 obligation is in registered form under Section 5f.103-1(c) of the United
 States Treasury Regulations. The entries in the Participant Register shall be
 conclusive absent manifest error, and such Lender shall treat each Person
 whose name is recorded in the Participant Register as the owner of such
 participation for all purposes of this Agreement notwithstanding any notice
 to the contrary. For the avoidance of doubt, the Administrative Agent (in its
 capacity as Administrative Agent) shall have no responsibility for
 maintaining a Participant Register. 

 
	
  

 	
  

 
	
  

 	
           (b) Any
 Lender may at any time pledge or assign a security interest in all or any
 portion of its rights under this Agreement to secure obligations of such
 Lender, including without limitation any pledge or assignment to secure
 obligations to a Federal Reserve Bank, and this Section shall not apply to
 any such pledge or assignment of a security interest; provided that no
 such pledge or assignment of a security interest shall release a Lender from
 any of its obligations hereunder or substitute any such pledgee or assignee
 for such Lender as a party hereto. 

 

                    SECTION
9.05. Survival. All covenants, agreements, representations and
warranties made by the Loan Parties in the Loan Documents and in the
certificates or other instruments delivered in connection with or pursuant to
this Agreement or any other Loan Document shall be considered to have been
relied upon by the other parties hereto and shall survive the execution and
delivery of the Loan Documents and the making of any Loans and issuance of any
Letters of Credit, regardless of any investigation made by any such other party
or on its behalf and notwithstanding that the Administrative Agent, any Issuing
Bank or any Lender may have had notice or knowledge of any Default or incorrect
representation or warranty at the time any credit is extended hereunder, and
shall continue in full force and effect as long as the principal of or any
accrued interest on any Loan or any fee or any other amount payable under this
Agreement or any other Loan Document is outstanding and unpaid or any Letter of
Credit is outstanding and so long as the Commitments have not expired or
terminated. The provisions of Sections 2.15, 2.16, 2.17 and 9.03 and Article
VIII shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the
Loans, the expiration or termination of the Letters of Credit and the
Commitments or the termination of this Agreement or any other Loan Document or
any provision hereof or thereof. 

69

                    SECTION
9.06. Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which
when taken together shall constitute a single contract. This Agreement, the
other Loan Documents and any separate letter agreements with respect to fees
payable to the Administrative Agent constitute the entire contract among the
parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof. Except as provided in Section 4.01, this Agreement shall become
effective when it shall have been executed by the Administrative Agent and when
the Administrative Agent shall have received counterparts hereof which, when
taken together, bear the signatures of each of the other parties hereto, and
thereafter shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. Delivery of an executed
counterpart of a signature page of this Agreement by telecopy, e-mailed .pdf or
any other electronic means that reproduces an image of the actual executed
signature page shall be effective as delivery of a manually executed counterpart
of this Agreement. 

                    SECTION
9.07. Severability. Any provision of any Loan Document held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions thereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction. 

                    SECTION
9.08. Right of Setoff. If an Event of Default shall have occurred and be
continuing, 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 and in whatever currency denominated) at any time held and other
obligations at any time owing by such Lender or Affiliate to or for the credit
or the account of any Borrower or any Subsidiary Guarantor against any of and
all of the Obligations held by such Lender, irrespective of whether or not such
Lender shall have made any demand under the Loan Documents and although such
obligations may be unmatured. The rights of each Lender under this Section are
in addition to other rights and remedies (including other rights of setoff)
which such Lender may have. 

                    SECTION
9.09. Governing Law; Jurisdiction; Consent to Service of Process. (a)
This Agreement shall be construed in accordance with and governed by the law of
the State of New York. 

                    (b)
Each Borrower hereby irrevocably and unconditionally submits, for itself and
its property, to the nonexclusive jurisdiction of the Supreme Court of the
State of New York sitting in New York County, Borough of Manhattan, and of the
United States District Court for the Southern District of New York, and any
appellate court from any thereof, in any action or proceeding arising out of or
relating to any Loan Document, or for recognition or enforcement of any
judgment, and each of the parties hereto hereby irrevocably and unconditionally
agrees that all claims in respect of any such action or proceeding may be heard
and determined in such New York State or, to the extent permitted by law, in
such Federal court. Each of the parties hereto agrees that a final judgment in
any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement or any other Loan Document shall affect any right
that the Administrative Agent, any Issuing Bank or any Lender may otherwise
have to bring any action or proceeding relating to this Agreement or any other
Loan Document against any Loan Party or its properties in the courts of any
jurisdiction. 

                    (c)
Each Borrower hereby irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection which it may now or
hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Agreement or any other Loan 

70

Document in any court referred to in paragraph (b) of this Section.
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. 

                    (d)
Each party to this Agreement irrevocably consents to service of process in the
manner provided for notices in Section 9.01. Each Foreign Subsidiary Borrower
irrevocably designates and appoints the Company, as its authorized agent, to
accept and acknowledge on its behalf, service of any and all process which may be
served in any suit, action or proceeding of the nature referred to in Section
9.09(b) in any federal or New York State court sitting in New York City. The
Company hereby represents, warrants and confirms that the Company has agreed to
accept such appointment (and any similar appointment by a Subsidiary Guarantor
which is a Foreign Subsidiary). Said designation and appointment shall be
irrevocable by each such Foreign Subsidiary Borrower until all Loans, all
reimbursement obligations, interest thereon and all other amounts payable by
such Foreign Subsidiary Borrower hereunder and under the other Loan Documents
shall have been paid in full in accordance with the provisions hereof and
thereof and such Foreign Subsidiary Borrower shall have been terminated as a
Borrower hereunder pursuant to Section 2.23. Each Foreign Subsidiary Borrower
hereby consents to process being served in any suit, action or proceeding of
the nature referred to in Section 9.09(b) in any federal or New York State
court sitting in New York City by service of process upon the Company as
provided in this Section 9.09(d); provided that, to the extent lawful
and possible, notice of said service upon such agent shall be mailed by
registered or certified air mail, postage prepaid, return receipt requested, to
the Company and (if applicable to) such Foreign Subsidiary Borrower at its
address set forth in the Borrowing Subsidiary Agreement to which it is a party
or to any other address of which such Foreign Subsidiary Borrower shall have
given written notice to the Administrative Agent (with a copy thereof to the
Company). Each Foreign Subsidiary Borrower irrevocably waives, to the fullest
extent permitted by law, all claim of error by reason of any such service in
such manner and agrees that such service shall be deemed in every respect
effective service of process upon such Foreign Subsidiary Borrower in any such
suit, action or proceeding and shall, to the fullest extent permitted by law,
be taken and held to be valid and personal service upon and personal delivery
to such Foreign Subsidiary Borrower. To the extent any Foreign Subsidiary
Borrower has or hereafter may acquire any immunity from jurisdiction of any
court or from any legal process (whether from service or notice, attachment
prior to judgment, attachment in aid of execution of a judgment, execution or
otherwise), each Foreign Subsidiary Borrower hereby irrevocably waives such
immunity in respect of its obligations under the Loan Documents. Nothing in
this Agreement or any other Loan Document will affect the right of any party to
this Agreement to serve process in any other manner permitted by law. 

                    SECTION
9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING
TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION. 

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

71

                    SECTION
9.12. Confidentiality. Each of the Administrative Agent, the Issuing
Banks and the Lenders agrees to maintain the confidentiality of the Information
(as defined below), except that Information may be disclosed (a) to its and its
Affiliates’ directors, officers, employees and agents, including accountants,
legal counsel and other advisors (it being understood that the Persons to whom
such disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (b) to the
extent requested by any regulatory authority (including any self-regulatory
authority, such as the National Association of Insurance Commissioners), (c) to
the extent required by applicable laws or regulations or by any subpoena or
similar legal process, (d) to any other party to this Agreement, (e) in
connection with the exercise of any remedies hereunder or any suit, action or
proceeding relating to this Agreement or any other Loan Document or the
enforcement of rights hereunder or thereunder, (f) subject to an agreement
containing provisions substantially the same as those of this Section, to (i)
any assignee of or Participant in, or any prospective assignee of or
Participant in, any of its rights or obligations under this Agreement or (ii)
any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to any Borrower and its obligations, (g) with
the consent of the Company or (h) to the extent such Information (i) becomes
publicly available other than as a result of a breach of this Section or (ii)
becomes available to the Administrative Agent, any Issuing Bank or any Lender
on a nonconfidential basis from a source other than the Company. For the
purposes of this Section, “Information” means all information received from the
Company relating to the Company or its business, whether or not identified at
the time of delivery as confidential, other than (x) any such information that
is available to the Administrative Agent, any Issuing Bank or any Lender on a
nonconfidential basis prior to disclosure by the Company and (y) any such
information that is independently developed, discovered or arrived at by the
Administrative Agent, any Issuing Bank or any Lender. Any Person required to
maintain the confidentiality of Information as provided in this Section shall
be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.  

                    SECTION
9.13. USA PATRIOT Act. Each Lender that is subject to the requirements
of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October
26, 2001)) (the “Act”) hereby notifies each Loan Party that pursuant to the
requirements of the Act, it is required to obtain, verify and record
information that identifies such Loan Party, which information includes the
name and address of such Borrower and other information that will allow such
Lender to identify such Loan Party in accordance with the Act.  

                    SECTION
9.14. Releases of Subsidiary Guarantors. (a) A Subsidiary Guarantor
shall automatically be released from its obligations under the Subsidiary
Guaranty upon the consummation of any transaction permitted by this Agreement
as a result of which such Subsidiary Guarantor ceases to be a Subsidiary; provided
that, if so required by this Agreement, the Required Lenders shall have
consented to such transaction and the terms of such consent shall not have
provided otherwise. In connection with any termination or release pursuant to
this Section, the Administrative Agent shall (and is hereby irrevocably
authorized by each Lender to) execute and deliver to any Loan Party, at such
Loan Party’s expense, all documents that such Loan Party shall reasonably
request to evidence such termination or release. Any execution and delivery of
documents pursuant to this Section shall be without recourse to or warranty by
the Administrative Agent. 

                    (b)
Further, the Administrative Agent may (and is hereby irrevocably authorized by
each Lender to), upon the request of the Company, release any Subsidiary
Guarantor from its obligations under the Subsidiary Guaranty if such Subsidiary
Guarantor is no longer a Material Subsidiary. 

                    (c)
At such time as the principal and interest on the Loans, all LC Disbursements,
the fees, expenses and other amounts payable under the Loan Documents and the
other Obligations (other 

72

than obligations under any Swap Agreement or any Banking Services
Agreement, and other Obligations expressly stated to survive such payment and
termination) shall have been paid in full in cash, the Commitments shall have
been terminated and no Letters of Credit shall be outstanding, the Subsidiary
Guaranty and all obligations (other than those expressly stated to survive such
termination) of each Subsidiary Guarantor thereunder shall automatically
terminate, all without delivery of any instrument or performance of any act by
any Person. 

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

                    SECTION
9.16. No Advisory or Fiduciary Responsibility. In connection with all
aspects of each transaction contemplated hereby (including in connection with
any amendment, waiver or other modification hereof or of any other Loan
Document), each Borrower acknowledges and agrees that: (i) (A) the arranging
and other services regarding this Agreement provided by the Lenders are
arm’s-length commercial transactions between such Borrower and its Affiliates,
on the one hand, and the Lenders and their Affiliates, on the other hand, (B)
such Borrower has consulted its own legal, accounting, regulatory and tax
advisors to the extent it has deemed appropriate, and (C) such Borrower is
capable of evaluating, and understands and accepts, the terms, risks and
conditions of the transactions contemplated hereby and by the other Loan
Documents; (ii) (A) each of the Lenders and their Affiliates is and has been
acting solely as a principal and, except as expressly agreed in writing by the
relevant parties, has not been, is not, and will not be acting as an advisor,
agent or fiduciary for such Borrower or any of its Affiliates, or any other
Person and (B) no Lender or any of its Affiliates has any obligation to such
Borrower or any of its Affiliates with respect to the transactions contemplated
hereby except, in the case of a Lender, those obligations expressly set forth
herein and in the other Loan Documents; and (iii) each of the Lenders and their
respective Affiliates may be engaged in a broad range of transactions that
involve interests that differ from those of such Borrower and its Affiliates,
and no Lender or any of its Affiliates has any obligation to disclose any of
such interests to such Borrower or its Affiliates. To the fullest extent
permitted by law, each Borrower hereby waives and releases any claims that it
may have against each of the Lenders and their Affiliates with respect to any
breach or alleged breach of agency or fiduciary duty in connection with any
aspect of any transaction contemplated hereby. 

ARTICLE X

Cross-Guarantee

                    In
order to induce the Lenders to extend credit to the other Borrowers hereunder,
but subject to the last sentence of this Article X, each Borrower hereby
irrevocably and unconditionally guarantees, as a primary obligor and not merely
as a surety, the payment when and as due of the Obligations of such other
Borrowers. Each Borrower further agrees that the due and punctual payment of
such Obligations may be extended or renewed, in whole or in part, without
notice to or further assent 

73

from it, and that it will remain bound upon its guarantee hereunder
notwithstanding any such extension or renewal of any such Obligation. 

                    Each
Borrower waives presentment to, demand of payment from and protest to any
Borrower of any of the Obligations, and also waives notice of acceptance of its
obligations and notice of protest for nonpayment. The obligations of each
Borrower hereunder shall not be affected by (a) the failure of the
Administrative Agent, any Issuing Bank or any Lender to assert any claim or
demand or to enforce any right or remedy against any Borrower under the
provisions of this Agreement, any other Loan Document or otherwise; (b) any
extension or renewal of any of the Obligations; (c) any rescission, waiver,
amendment or modification of, or release from, any of the terms or provisions
of this Agreement, or any other Loan Document or agreement; (d) any default,
failure or delay, willful or otherwise, in the performance of any of the
Obligations; (e) the failure of the Administrative Agent to take any steps to
perfect and maintain any security interest in, or to preserve any rights to,
any security or collateral for the Obligations, if any; (f) any change in the
corporate, partnership or other existence, structure or ownership of any
Borrower or any other guarantor of any of the Obligations; (g) the
enforceability or validity of the Obligations or any part thereof or the
genuineness, enforceability or validity of any agreement relating thereto or
with respect to any collateral securing the Obligations or any part thereof, or
any other invalidity or unenforceability relating to or against any Borrower or
any other guarantor of any of the Obligations, for any reason related to this
Agreement, any Swap Agreement, any other Loan Document, or any provision of
applicable law, decree, order or regulation of any jurisdiction purporting to
prohibit the payment by such Borrower or any other guarantor of the
Obligations, of any of the Obligations or otherwise affecting any term of any
of the Obligations; or (h) any other act, omission or delay to do any other act
which may or might in any manner or to any extent vary the risk of such
Borrower or otherwise operate as a discharge of a guarantor as a matter of law
or equity or which would impair or eliminate any right of such Borrower to
subrogation. 

                    Each
Borrower further agrees that its agreement hereunder constitutes a guarantee of
payment when due (whether or not any bankruptcy or similar proceeding shall
have stayed the accrual or collection of any of the Obligations or operated as
a discharge thereof) and not merely of collection, and waives any right to
require that any resort be had by the Administrative Agent, any Issuing Bank or
any Lender to any balance of any deposit account or credit on the books of the
Administrative Agent, any Issuing Bank or any Lender in favor of any Borrower
or any other Person. 

                    The
obligations of each Borrower hereunder shall not be subject to any reduction,
limitation, impairment or termination for any reason, and shall not be subject
to any defense or set-off, counterclaim, recoupment or termination whatsoever,
by reason of the invalidity, illegality or unenforceability of any of the
Obligations, any impossibility in the performance of any of the Obligations or
otherwise. 

                    Each
Borrower further agrees that its obligations hereunder shall continue to be
effective or be reinstated, as the case may be, if at any time payment, or any
part thereof, of any Obligation (including a payment effected through exercise
of a right of setoff) is rescinded, or is or must otherwise be restored or
returned by the Administrative Agent, any Issuing Bank or any Lender upon the
insolvency, bankruptcy or reorganization of any Borrower or otherwise
(including pursuant to any settlement entered by a holder of Obligations in its
discretion). 

                    In
furtherance of the foregoing and not in limitation of any other right which the
Administrative Agent, any Issuing Bank or any Lender may have at law or in
equity against any Borrower by virtue hereof, upon the failure of any other
Borrower to pay any Obligation when and as the same shall become due, whether
at maturity, by acceleration, after notice of prepayment or otherwise, each
Borrower hereby promises to and will, upon receipt of written demand by the
Administrative Agent, any Issuing 

74

Bank or any Lender, forthwith pay, or cause to be paid, to the
Administrative Agent, any Issuing Bank or any Lender in cash an amount equal to
the unpaid principal amount of such Obligations then due, together with accrued
and unpaid interest thereon. Each Borrower further agrees that if payment in
respect of any Obligation shall be due in a currency other than Dollars and/or
at a place of payment other than New York, Chicago or any other Eurocurrency
Payment Office and if, by reason of any Change in Law, disruption of currency
or foreign exchange markets, war or civil disturbance or other event, payment
of such Obligation in such currency or at such place of payment shall be
impossible or, in the reasonable judgment of the Administrative Agent, any
Issuing Bank or any Lender, disadvantageous to the Administrative Agent, any
Issuing Bank or any Lender in any material respect, then, at the election of
the Administrative Agent, such Borrower shall make payment of such Obligation
in Dollars (based upon the applicable Equivalent Amount in effect on the date
of payment) and/or in New York, Chicago or such other Eurocurrency Payment
Office as is designated by the Administrative Agent and, as a separate and
independent obligation, shall indemnify the Administrative Agent, any Issuing
Bank and any Lender against any losses or reasonable out-of-pocket expenses
that it shall sustain as a result of such alternative payment. 

                    Upon
payment by any Borrower of any sums as provided above, all rights of such
Borrower against any Borrower arising as a result thereof by way of right of
subrogation or otherwise shall in all respects be subordinated and junior in
right of payment to the prior indefeasible payment in full in cash of all the
Obligations owed by such Borrower to the Administrative Agent, the Issuing
Banks and the Lenders. 

                    Nothing
shall discharge or satisfy the liability of any Borrower hereunder except the
full performance and payment in cash of the Obligations. 

                    Notwithstanding
anything contained in this Article X to the contrary, no Foreign Subsidiary
Borrower which is and remains an Affected Foreign Subsidiary shall be liable
hereunder for any of the Loans made to, or any other Obligation incurred solely
by or on behalf of, the Company or any Subsidiary Guarantor which is a Domestic
Subsidiary.  

[Signature Pages Follow]

75

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

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 MTS SYSTEMS
 CORPORATION, as the Company

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 /s/ Sue
 Knight

 	
  

 
	
  

 	
  

 	
 Name: Sue
 Knight

 
	
  

 	
  

 	
 Title: Chief
 Financial Officer

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 JPMORGAN
 CHASE BANK, N.A., individually as a Lender, as Swingline Lender, as an
 Issuing Bank and as Administrative Agent

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 /s/ Krys
 Szremski

 	
  

 
	
  

 	
  

 	
 Name: Krys
 Szremski

 
	
  

 	
  

 	
 Title: Vice
 President

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WELLS FARGO
 BANK, NATIONAL ASSOCIATION, individually as a Lender and as Syndication Agent

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 /s/ Sharlyn
 G. Rekenthaler

 	
  

 
	
  

 	
  

 	
 Name:
 Sharlyn G. Rekenthaler

 
	
  

 	
  

 	
 Title: Vice
 President

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 U.S. BANK
 NATIONAL ASSOCIATION, individually as a Lender and as Co-Documentation Agent

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 /s/ Andrew
 C. Beckman

 	
  

 
	
  

 	
  

 	
 Name: Andrew
 C. Beckman

 
	
  

 	
  

 	
 Title:
 Assistant Vice President

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 HSBC BANK
 USA, NATIONAL ASSOCIATION, individually as a Lender and as Co-Documentation
 Agent

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 /s/ Jonathan
 Twrchell

 	
  

 
	
  

 	
  

 	
 Name:
 Jonathan Twrchell

 
	
  

 	
  

 	
 Title: Vice
 President

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