Document:

Exhibit 10.1

ASSET PURCHASE AGREEMENT

by and between

FISCHER IMAGING
CORPORATION

as “Seller”

and

BYERS PEAK, INC.

as “Buyer”

Dated as of August 21,
2006

 

TABLE OF CONTENTS

 

	
  ARTICLE I
  DEFINITIONS

  	
  4

  
	
  1.1

  	
  Defined
  Terms.

  	
   

  	
  4

  
	
  ARTICLE II PURCHASE
  AND SALE AGREEMENT

  	
  8

  
	
  2.1

  	
  Transfer of
  Assets.

  	
   

  	
  8

  
	
  2.2

  	
  Assumed Liabilities.

  	
   

  	
  9

  
	
  2.3

  	
  Purchase Price.

  	
   

  	
  9

  
	
  ARTICLE III CLOSING

  	
  10

  
	
  3.1

  	
  Closing.

  	
   

  	
  10

  
	
  3.2

  	
  Conveyances at
  Closing.

  	
   

  	
  10

  
	
  3.3

  	
  Transaction
  Expenses.

  	
   

  	
  11

  
	
  3.4

  	
  Transfer Taxes.

  	
   

  	
  11

  
	
  3.5

  	
  Other Closing
  Matters.

  	
   

  	
  11

  
	
  ARTICLE IV
  REPRESENTATIONS AND WARRANTIES OF SELLER

  	
  11

  
	
  4.1

  	
  Organization
  and Authorization of Seller.

  	
   

  	
  11

  
	
  4.2

  	
  No Violation.

  	
   

  	
  12

  
	
  4.3

  	
  Governmental
  Consents and Approvals.

  	
   

  	
  12

  
	
  4.4

  	
  Intellectual
  Property.

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V
  REPRESENTATIONS AND WARRANTIES OF BUYER

  	
  13

  
	
  5.1

  	
  Organization of
  Buyer.

  	
   

  	
  13

  
	
  5.2

  	
  Authorization.

  	
   

  	
  13

  
	
  5.3

  	
  Governmental
  Consents and Approvals.

  	
   

  	
  13

  
	
  5.4

  	
  No Violation.

  	
   

  	
  13

  
	
  5.5

  	
  Financial Capacity.

  	
   

  	
  14

  
	
  ARTICLE VI
  ADDITIONAL COVENANTS OF SELLER

  	
  14

  
	
  6.1

  	
  Maintenance
  of Business Prior to Closing.

  	
   

  	
  14

  
	
  6.2

  	
  Investigation by
  Buyer.

  	
   

  	
  14

  
	
  6.3

  	
  Consents
  and Reasonable Efforts.

  	
   

  	
  15

  
	
  ARTICLE VII
  CONDITIONS TO SELLER’S OBLIGATIONS

  	
  15

  
	
  7.1

  	
  Entry of
  Sale Approval Order.

  	
   

  	
  15

  
	
  7.2

  	
  No Order
  Enjoining Sale.

  	
   

  	
  15

  
	
  7.3

  	
  Representations,
  Warranties and Covenants.

  	
   

  	
  15

  
	
  ARTICLE
  VIII
  CONDITIONS TO BUYER’S OBLIGATIONS

  	
  16

  
	
  8.1

  	
  Entry and
  Finality of Sale Approval Order.

  	
   

  	
  16

  
	
  8.2

  	
  Representations,
  Warranties and Covenants.

  	
   

  	
  16

  
	
  8.3

  	
  Consents.

  	
   

  	
  16

  
	
  8.4

  	
  No
  Proceedings or Litigation.

  	
   

  	
  16

  
	
  8.5

  	
  Instruments
  of Conveyance, Certificates.

  	
   

  	
  17

  
	
  ARTICLE IX OTHER
  AGREEMENTS

  	
  17

  
	
  9.1

  	
  Employee Matters.

  	
   

  	
  17

  
	
  9.2

  	
  Risk of Loss.

  	
   

  	
  17

  
	
  9.3

  	
  Consents to
  Assignment.

  	
   

  	
  17

  
	
  ARTICLE X MISCELLANEOUS

  	
  18

  

 2
 

 

 

	
  10.1

  	
  Termination.

  	
   

  	
  18

  
	
  10.2

  	
  In the
  Event of Termination; Remedies.

  	
   

  	
  18

  
	
  10.3

  	
  Assignment;
  Successors.

  	
   

  	
  19

  
	
  10.4

  	
  Notices.

  	
   

  	
  19

  
	
  10.5

  	
  Choice of Law.

  	
   

  	
  20

  
	
  10.6

  	
  Entire
  Agreement; Amendments and Waivers.

  	
   

  	
  20

  
	
  10.7

  	
  Construction.

  	
   

  	
  21

  
	
  10.8

  	
  Third Party
  Beneficiaries.

  	
   

  	
  21

  
	
  10.9

  	
  No Waiver.

  	
   

  	
  21

  
	
  10.10

  	
  Multiple
  Counterparts.

  	
   

  	
  21

  
	
  10.11

  	
  Invalidity.

  	
   

  	
  22

  
	
  10.12

  	
  Publicity.

  	
   

  	
  22

  
	
  10.13

  	
  Further Assurances.

  	
   

  	
  22

  
	
  10.14

  	
  Access to
  Books and Records.

  	
   

  	
  22

  
	
  10.15

  	
  Cumulative
  Remedies.

  	
   

  	
  22

  
	
  10.16

  	
  Termination
  of Covenants, Representations, and Warranties.

  	
   

  	
  23

  
	
  10.17

  	
  No
  Impediment to Liquidation.

  	
   

  	
  23

  
	
  10.18

  	
  Representation
  by Counsel; Mutual Negotiation.

  	
   

  	
  23

  

 3
 

 

ASSET
PURCHASE AGREEMENT

This Asset Purchase Agreement (this “Agreement”), dated as of August 21, 2006, is  by and between Byers Peak, Inc., a Colorado
corporation (“Buyer”), and Fischer Imaging
Corporation, a Delaware corporation (“Seller”).

R
E  C  I  T  A  L  S:

Seller engages in the design, manufacture, sale,
distribution, marketing, technical support and warranty and post-warranty
repair of the Product Lines defined below (the “Business”).

This Agreement contemplates
a transaction in which Buyer will purchase from Seller certain assets of the
Business.  Specifically, Buyer will
purchase the VersaRad-A and VersaRad-D systems (the “VersaRad  Line”),
EPX-60 Single Plane EP Imaging System, the SPX Surgical Imaging System, EP602, and Tangent tables (the “EPX/SPX Line”) and Bloom Electrophysiology Stimulator (the “Bloom  Line”)
(collectively the “Product Line”)
subject to the terms and conditions of this Agreement, including its provisions
regarding the assignment of liabilities.

AGREEMENT

NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants and promises contained
herein and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

1.1           Defined Terms.

As used herein, the terms below shall have the
following meanings:

Affiliate has the same meaning
as set forth in the Bankruptcy Code, 11 U.S.C. § 101(2).

Agreement has the meaning set
forth in the preface above.

Acquired Assets means all of
Seller’s right, title and interest in and to the Data, the Deliverables, the
Assumed Executory Contracts, the Equipment, the Intellectual Property and the
Inventory.

Assumed Executory Contracts
means the Contracts and leases set forth on Schedule 1.1
(Assumed Executory Contracts) attached hereto.

Assumed Liabilities means the
liabilities and obligations of or relating to the Product Line (which may be
trade payable liabilities and include the warranty obligations relating to the
twenty Bloom Units retained by Buyer) specifically set forth on Schedule 1.1 (Assumed Liabilities) attached hereto.

 4
 

 

Bankruptcy Case means the case,
if necessary, filed by Debtor in the Bankruptcy Court for the District of
Colorado.

Bankruptcy Code means the United
States Bankruptcy Code, 11 U.S.C. § 101 et seq.

Bankruptcy Court means the
United States Bankruptcy Court for the District of Colorado.

Bankruptcy Schedules means the
Seller’s Schedules filed in the Bankruptcy Case.

Bloom Line has the meaning set
forth in the recitals above.

Business has the meaning set
forth in the recitals above.

Business Day means any day
excluding Saturday, Sunday and any day which is a legal holiday under the laws
of the State of Colorado or is a day on which banking institutions located in
such state are authorized or required by law or other governmental action to
close.

Buyer has the meaning set forth
in the preface above.

Cash Purchase Price
has the meaning set forth in § 2.3 (a) below.

Closing has the
meaning set forth in § 3.1 below.

Closing  Date has the meaning set forth in § 3.1
below.

Confidentiality Agreement means
the Confidentiality Agreement dated as of March 27, 2006 by and between the
Seller and the Buyer.

Data means historical Product
Line information including sales history, inventory history, product approved
part list matched to approved vendor list, bills of material, warranty and
repair history, price lists, end-user information, pricing and cost
information, and business and marketing plans and proposals to the extent
available under Seller’s document retention program and such other information
as Buyer may reasonably request which relates to the Product Line but excluding
(i) data so commingled with Seller’s other data such that it cannot be
extracted without unreasonable expense or (ii) data obtained from third Persons
subject to a confidentiality agreement or other applicable law restricting
Buyer’s access to such data and such Person has refused to consent to the transfer
of such data to Buyer.

Deferred Purchase Price has the meaning set forth in § 2.3 (b)
below.

Deliverables means a copy (in
accessible electronic or hard copy form) of the following:

(a)           all issued patent certificates and
files for all issued patents and patent applications for the patents identified
on Schedule 1.1 (IP-Transferred Patents) together
with files for all reissuances, continuations-in-part, revisions, extensions,
reexaminations and improvements thereof; all patent disclosure documentation for
the patents and patent applications

 5
 

 

on Schedule 1.1 (IP-Transferred Patents) and
for all reissuances, continuations-in-part, revisions, extensions,
reexaminations and improvements thereof;

(b)           all issued registration certificates
(or to the extent accessible in Seller’s possession use or control, the
original certificates) for the trademarks and service marks set forth on Schedule 1.1 (IP-Transferred Trademarks)
together with the application files and any trademark searches thereof;

(c)           all documents and/or files regarding
the design, development and improvement of the packaging trade dress for the
Product Line;

(d)           all copyrightable works of authorship
(including web pages, computer software source and object code, manuals and end
user-documentation, and to the extent accessible and in Seller’s possession,
use or control, a master copy thereof), and copyright application files,
copyright registration and renewal certificates, if any, as set forth on Schedule 1.1 (IP-Copyrights);

(e)           all mask works, if any, and all
application files and registration certificates thereof, if any;

(f)            all documents and/or files, if any,
of Seller’s trade secrets;

(g)           all documents and/or files containing
the proprietary confidential business information as defined in subparagraph (b) of the definition of “Intellectual
Property” below;

(h)           all documents and/or files containing
any other Intellectual Property;

(i)            all equipment warranties relating to
the Equipment and Product Line, if any; and

(j)            all manuals relating to Intellectual
Property.

Deposits shall
mean the good faith deposits previously paid to Seller by Buyer in the
aggregate amount of $11,000.00.

Encumbrance
means any pledge, lien, charge, right of others, sublease, easement, title
defect, mortgage, license, encumbrance, security interest and other adverse
claim or interest of any kind or nature whatsoever, other than the liens of
taxing authorities that are not properly due and payable.

Environmental Laws shall mean
all applicable local, state and federal statutes and regulations relating to
the protection of human health or the environment, as the foregoing are enacted
and in effect prior to the Closing Date.

EPX/SPX Line has the meaning set
forth in the recitals above.

 6
 

 

Equipment means the equipment,
machinery, tools, jigs, dies, parts and other tangible property wherever
located, set forth on Schedule 1.1
(Equipment) attached hereto.

Excluded Liabilities has the
meaning set forth in § 2.2 below.

Final Order means an Order of
the Bankruptcy Court that has not been reversed, stayed, modified or amended
and as to which the time to appeal or petition for certiorari has expired and
as to which no appeal or petition for certiorari is pending.

Intellectual
Property means the following intangible items:

(a)           all patents and patent applications
on Schedule 1.1 (IP-Transferred Patents) and
all reissuances, continuations-in-part, revisions, extensions, reexaminations
and improvements thereof;

(b)           all material know how, trade secrets,
and proprietary confidential business information  relating to the Product Lines in Seller’s
possession as of the Closing Date;

(c)           the trade names, trademarks and
service marks set forth on Schedule 1.1
(IP-Transferred Trademarks) the goodwill of the business associated
with and symbolized by the foregoing and all applications, registrations and
renewals thereof;

(d)           all material copyrights (including
web pages, computer software, manuals and end user-documentation), and all
copyright applications, copyright registrations and copyright registration renewals,
if any, in connection therewith, as set forth on Schedule 1.1
(IP-Copyrights); and

(e)           all mask works, if any, and all
applications, registrations and renewals, if any, in connection therewith; and

(f)            URL redirection/forwarding, at the
cost of Buyer, enabling prospects or other individuals entering the URL domain
www.fischerimaging.com to be redirected to a URL to be established by Buyer for
a period of 12 months after close of sale.

Notwithstanding the
foregoing, the trade name Fischer Imaging or any derivative thereof, any
registered trademark containing the trade name Fischer Imaging or any
derivative thereof, or any domain name containing the name Fischer Imaging or
any derivative thereof is not included in the definition of Intellectual Property.

Intellectual Property Schedules has
the meaning set forth in § 4.4 below.

Inventory means those items
described on Schedule 1.1  (Inventory) attached hereto. Buyer specifically acknowledges
that 20 Bloom finished goods units will be retained by Seller and are not
included in Inventory.

IRC means the Internal Revenue
Code of 1986, as amended.

 7
 

 

Maintenance Obligations has the
meaning set forth in § 2.3 below.

Person means any individual,
corporation, partnership, limited liability company, trust, association, joint
venture or other entity or any kind whatsoever.

Personnel means all directors,
officers and employees.

Product Line has the meaning set
forth in the recitals above.

Purchase
Price means the Cash Purchase
Price plus the Deferred Purchase Price.

Representative means any
attorney, accountant, agent, consultant or other representative (but shall not
include Personnel).

Sale Approval Order means, in
the event of a Bankruptcy Case, an order of the Bankruptcy Court, satisfactory
in form and substance to Buyer, Seller and their respective counsel, entered
after a hearing conducted with adequate notice, approving the transactions
contemplated by this Agreement.

Sale Procedures Order means, in
the event of a Bankruptcy Case, an order of the Bankruptcy Court, satisfactory
in form and substance to Buyer, Seller and their respective counsel, entered
after a hearing conducted with adequate notice, approving any specific sales
procedures in the Bankruptcy Court.

Seller has the meaning set forth
in the preface above.

Subsidiary means any corporation
with respect to which a specified Person (or a Subsidiary thereof) owns a
majority of the common stock or has the power to vote or direct the voting of
sufficient securities to elect a majority of the directors.

Taxes shall mean all taxes,
estimated taxes, assessments and other charges, including any interest,
penalties, additions to tax or additional amounts that may become payable in
respect thereof, imposed by any foreign, federal, state, county, local or other
government or taxing authority, which taxes shall include, without limitation,
all income taxes, payroll and employee withholding taxes, unemployment
insurance, social security, sales and use taxes, value-added taxes, excise
taxes, franchise taxes, gross receipts taxes, occupation taxes, real and
personal property taxes, stamp taxes, transfer taxes, workers’ compensation and
other obligations of the same or of a similar nature.

VersaRad Line has the meaning
set forth in the recitals above.

 8

 

ARTICLE II

PURCHASE AND SALE AGREEMENT

2.1           Transfer of Acquired Assets.

Upon the terms and
subject to the conditions and provisions contained herein and in the Sale
Procedures Order, if any, at the Closing, Seller shall sell, convey, transfer,
assign and deliver to Buyer, and Buyer shall purchase, acquire and accept from
Seller, the Acquired Assets free and clear of any and all Encumbrances, “as is,
where is” without representations or warranties of any kind, express or implied
except as contained in this Agreement.

2.2           Assumed Liabilities.

At the Closing,
Buyer shall assume and undertake to pay, perform and discharge when due or
required to be performed the Assumed Liabilities and the Assumed Executory
Contracts.  Buyer will not assume nor
have any responsibility, however, with respect to any other obligation or
liability of Seller not included within the definition of Assumed Liabilities
(the “Excluded Liabilities”).

2.3           Assumed Executory Contracts.

From and after the
Closing Date, Buyer shall assume all of Seller’s obligations under the Assumed
Executory Contracts including, if set forth on Schedule 1.1 (Assumed Executory Contracts), the obligations to
provide maintenance services pursuant to the existing service contracts listed
thereon (“Maintentance Obligations”).

2.4           Purchase Price.

(a)           Upon
the terms and subject to the conditions set forth herein, Buyer shall pay to
Seller for the sale, transfer, assignment, conveyance and delivery of the
Acquired Assets, $100,000 (the “Cash Purchase
Price”), net of the Deposits (i.e., $89,000 = $100,000 – Deposits of
$11,000), by delivery of cash payable by wire transfer or other immediately
available funds.

(b)           Buyer
shall pay to Seller as additional consideration $4,000.00 per individual Bloom
Electrophysiology Stimulator (“Bloom Unit”)
sold by Buyer during the twelve (12) months following the Closing (the “Deferred Purchase Price”).  Buyer shall pay Seller under this Section
2.4(b) by the 20th of each month for any Bloom Units sold during
the previous month.  Notwithstanding the
number of Bloom Units actually sold during the twelve (12) months following
Closing, Buyer shall pay to Seller pursuant to this Section 2.4(b) a
minimum of $160,000, but in no event more than $240,000.  If at the end of the twelve (12) month period
Buyer has not paid to Seller an aggregate minimum amount of $160,000 pursuant
to this Section 2.4(b), Buyer shall pay to Seller the shortfall to
Seller within fifteen (15) days after the expiration of the twelve (12) month
period.

(c)           The
Purchase Price shall be allocated for federal income tax purposes among the
Acquired Assets in a manner reasonably agreeable to Seller and Buyer; provided that such allocation shall be
made in a manner consistent with § 1060 of the IRC.

(d)           The
Deposits shall be held in a segregated account, and applied in accordance with
the terms of this Agreement.

 9
 

 

ARTICLE III

CLOSING

3.1           Closing.

Upon the terms and
conditions set forth herein and, in the event of a Bankruptcy Case, in the Sale
Procedures Order or the Sale Approval Order, the closing of the transactions
contemplated herein (the “Closing”)
shall be held at 10:00 a.m. prevailing Mountain time at the offices of
Jessop & Company, P.C., 303 E 17th Ave, Suite 930, Denver, Colorado, on the later
of (i) a date within two (2) Business Days after the Sale Approval Order
becomes a Final Order, (ii)       
  , 2006, or (iii) such other date (which date shall in no event
be more than three business days after the date of satisfaction or waiver of
the conditions (other than conditions intended to be satisfied at the Closing)
to each Party’s obligations hereunder) as the Parties may mutually
determine.  The date on which the Closing
occurs in accordance with the previous sentence is referred to as the “Closing Date.”

3.2           Conveyances at Closing.

At the Closing,
and in connection with effecting and consummating the Closing, including,
without limitation, the sale and purchase of the Acquired Assets and the
delivery of the Purchase Price, Seller and Buyer shall, on the Closing Date,
deliver the following:

(a)           Instruments
and Possession.  Seller shall
deliver to Buyer:

(i)            in
the event of a Bankruptcy Case, a certified copy of the Sale Approval Order;

(ii)           originals
of all Assumed Executory Contracts owned by or in the possession of Seller,
otherwise copies thereof;

(iii)          assignments
and transfers of Intellectual Property in the forms attached hereto as Exhibit 3.2(a)(iii);

(iv)          one
or more bills of sale for the Equipment, Inventory and Deliverables in the
forms attached hereto as Exhibit 3.2(a)(iv);

(b)           Deliverables.  Promptly following the Closing, Seller shall
provide the Deliverables and copies of the Data to Buyer and, from time to time
thereafter, such additional Data as Buyer may reasonably request;

(c)           Miscellaneous.  After the Closing Date, Seller shall deliver
to Buyer such other instruments as shall be reasonably requested by Buyer to
vest in Buyer title in and to the Acquired Assets in accordance with the
provisions hereof.

(d)           Form of Instruments.  To the extent that a form of any document to
be delivered hereunder is not attached as an Exhibit hereto, such
documents shall be in form and substance, and shall be executed and delivered
in a manner, reasonably satisfactory to Buyer and Seller.

 10
 

 

 

(e)           Purchase Price.  Buyer shall deliver the Cash Purchase Price,
net of the Deposits, to the Seller in accordance with Section 2.4 and
such other instruments of assumption as Seller and its counsel reasonably may
request.

3.3           Transaction Expenses.

Except as
expressly provided herein, each party shall bear its own costs and expenses,
including attorney, accountant and other consultant fees, in connection with
the execution and negotiation of this Agreement and the consummation of the
transactions contemplated hereby.

3.4           Transfer Taxes and Costs.

All transfer,
sales, use and other Taxes in connection with the transactions contemplated by
this Agreement shall be paid equally by both Seller and Buyer.  All costs to register or record the transfer
of any intellectual property shall be paid by Buyer.

3.5           Other Closing Matters.

Each of the
parties shall use their reasonable efforts to take such other actions required
hereby to be performed by it prior to or on the Closing Date.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF SELLER

Seller hereby
makes, as of the date hereof, the following representations and warranties to
Buyer regarding only those Acquired Assets being transferred from Seller to
Buyer, subject to an appropriate vote of Seller’s shareholders or, in the event
of a Bankruptcy Case, the entry of the Sale Approval Order by the Bankruptcy
Court:

4.1           Organization and Authorization of Seller.

Seller is duly
organized, validly existing and in good standing under the laws of the State of
Delaware.  Seller has all necessary
corporate power and authority to enter into this Agreement subject to Seller
shareholder approval or the Sale Approval Order and has taken all corporate
action necessary, to execute and deliver this Agreement, to consummate the
transactions contemplated hereby and to perform its obligations hereunder, and
no other corporate proceedings on the part of Seller are necessary to authorize
the execution, delivery and performance of this Agreement and the consummation
of the transactions contemplated hereby. 
This Agreement has been duly executed and delivered by Seller and, upon
receipt of shareholder approval or the Sale Approval Order, is a valid and
binding obligation of Seller, enforceable against it in accordance with its
terms (except to the extent that enforcement may be affected by applicable
bankruptcy, reorganization, insolvency and similar laws affecting creditors’
rights and remedies and by general principles of equity (regardless of whether
enforcement is sought at law or in equity)). 
Each agreement or instrument which has been or shall be entered into or
executed and delivered by Seller in connection with the transactions
contemplated hereby has been (or will

 11
 

 

be) duly authorized,
executed and delivered by Seller, and is (or will be when authorized, executed
and delivered) a valid and binding obligation of Seller, enforceable against it
in accordance with its terms (except to the extent that enforcement may be
affect by laws relating to bankruptcy, reorganization, insolvency and similar
laws affecting creditors’ rights and remedies and by general principles of
equity (regardless of whether enforcement is sought at law or in equity)).

4.2           No Violation.

Other than the
requirement to obtain shareholder approval for the sale of all or substantially
all of Seller’s assets, the execution and delivery of this Agreement and the
other agreements specified herein and the consummation of the transactions
contemplated hereby and thereby do not and will not (a) violate any
provision of the certificate of incorporation or bylaws of Seller, (b) conflict
with or violate any statute or law, or any judgment, decree, order, regulation
or rule of any court or governmental authority, binding upon or applicable to
Seller or by which the Acquired Assets, are bound or affected or (c) result in
the creation or imposition of any lien or encumbrance on any of the Acquired
Assets.

4.3           Governmental Consents and Approvals.

Except for the
Sale Approval Order or the requirement to obtain shareholder approval, as
applicable, no consent, waiver, agreement, approval, Permit or authorization
of, or declaration, filing, notice or registration to or with, any United
States federal or state, local or foreign governmental or regulatory authority
is required to be made or obtained by Seller in connection with the execution,
delivery and performance of this Agreement and the consummation of the
transactions contemplated hereby or thereby.

4.4           Intellectual Property.

Those Intellectual
Property assets designated as being registered on the attached Schedule 1.1 (IP-Transferred Patents), and Schedule 1.1 (IP-Transferred Trademarks),
(collectively the “Intellectual Property
Schedules”), are all of Seller’s registered Intellectual Property
assets relating to the Product Lines.  To
Seller’s actual knowledge, Seller owns all the Intellectual Property that is
material to the Business as currently conducted by Seller.  To Seller’s actual knowledge, all patents,
trademarks and trade names listed on the Intellectual Property Schedules and
designated as being registered have been duly issued and are subsisting.  Seller has not received any written notice of
invalidity, infringement or misappropriation of any rights of others with
respect to such Intellectual Property. 
To Seller’s actual knowledge, no other firm, corporation, association or
person is infringing upon or misappropriating any such Intellectual
Property.  To Seller’s actual knowledge,
Seller’s use of the Intellectual Property is not infringing upon or otherwise
violating the rights of any third party in or to such Intellectual Property.   To Seller’s actual knowledge, there are no
restrictions on Seller’s right to sell products manufactured by Seller in
connection with the Product Line that result from, are caused by or are
otherwise related to any of the Intellectual Property.

 12
 

 

4.5           Good Title, Adequacy and Condition.

Upon receipt of
the Approval Order, Seller has good and marketable title to all of the Acquired
Assets, with full power to sell, assign, transfer and convey the same, free and
clear of any liens or encumbrances.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF BUYER

Buyer hereby makes
the following representations and warranties as of the date hereof to Seller:

5.1           Organization of Buyer.

Buyer is duly
organized, validly existing and in good standing under the laws of the State of
Colorado.

5.2           Authorization.

Buyer has all
necessary corporate power and authority to enter into this Agreement and has
taken all corporate action necessary, to execute and deliver this Agreement, to
consummate the transactions contemplated hereby and to perform its obligations
hereunder, and no other corporate proceedings on the part of Buyer are
necessary to authorize the execution, delivery and performance of this
Agreement and the consummation of the transactions contemplated hereby.  This Agreement has been duly executed and
delivered by Buyer and is a valid and binding obligation of Buyer, enforceable
against it in accordance with its terms (except to the extent that enforcement
may be affected by applicable bankruptcy, reorganization, insolvency and
similar laws affecting creditors’ rights and remedies and by general principles
of equity (regardless of whether enforcement is sought at law or in
equity)).  Each agreement or instrument
which has been or shall be entered into or executed and delivered by Buyer in
connection with the transactions contemplated hereby has been (or will be) duly
authorized, executed and delivered by Buyer, and is (or will be when
authorized, executed and delivered) a valid and binding obligation of Buyer,
enforceable against it in accordance with its terms (except to the extent that
enforcement may be affect by laws relating to bankruptcy, reorganization,
insolvency and similar laws affecting creditors’ rights and remedies and by
general principles of equity (regardless of whether enforcement is sought at
law or in equity)).

5.3           Governmental Consents and Approvals.

Other than the
Sale Approval Order, no consent, waiver, agreement, approval, permit or
authorization of, or declaration, filing, notice or registration to or with,
any United States federal or state governmental or regulatory authority is
required to be made or obtained by Buyer in connection with the execution,
delivery and performance of this Agreement and the consummation of the
transactions contemplated hereby or thereby.

5.4           No Violation.

The execution and
delivery of this Agreement and the other agreements specified herein and the
consummation of the transactions contemplated hereby and thereby do not and
will not

 13
 

 

(a) violate any
provision of the bylaws of Buyer or (b) conflict with or violate any
statute or law, or any judgment, decree, order, regulation or rule of any court
or governmental authority, binding upon or applicable to Buyer or by which the
property or assets of Buyer are bound or affected.

5.5           Financial Capacity.

Buyer has access
to sufficient financial resources to pay the Cash Purchase Price, consummate
the transactions contemplated herein and perform its obligations under the
Assumed Executory Contracts and under Section 9.1 of this Agreement.

5.6           Due Diligence.

Buyer has had an
opportunity to inspect and examine the Acquired Assets and to conduct any and
all due diligence regarding the assets prior to making its offer.  Buyer has relied solely upon its own
independent review, investigation and/or inspection of any documents and/or the
assets in making its bid, except as expressly stated in this Agreement.  Buyer did not rely upon any written or oral
statements, representations, promises, warranties or guaranties whatsoever,
except as provided in this Agreement, whether express or implied, by operation
of law or otherwise, regarding the Product Lines, or the completeness of any
information provided in connection therewith or the auction.

ARTICLE VI

ADDITIONAL COVENANTS

Seller and Buyer
covenant and agree with each other that from the date hereof through the
Closing:

6.1           Maintenance of Business Prior to Closing.

Seller shall
maintain the Acquired Assets in their current state of repair, excepting normal
wear and tear.

6.2           Investigation by Buyer.

Seller shall allow
Buyer and its Representatives and the financial institutions (and their counsel
and representatives) providing or proposed to provide financing in connection
with this Agreement and the transactions contemplated hereby, during regular business
hours upon reasonable notice, to make such inspection of the Acquired Assets,
business and operations of Seller and to inspect and make copies of contracts
and all other documents and information requested by Buyer and related to the
Product Line, including, without limitation, historical financial information
concerning the Product Line, and to meet with Seller’s designated personnel
and/or their representatives.  Seller
shall make available to Buyer promptly upon reasonable request (a) all
additional documents and information with respect to the affairs of Seller
relating to the Product Line and (b) access to the Personnel and to Seller’s
Representatives as Buyer, or its Representatives, may from time to time
reasonably request and shall instruct such Personnel and Representatives to
cooperate with Buyer and its Representatives, and to

 14
 

 

make available such
documents and information as Buyer and its Representatives may request.  Buyer will treat and hold any information it
receives in the course of the reviews contemplated by this section in
accordance with the Confidentiality Agreement. 

6.3           Consents and Reasonable Efforts.

(a)           Seller
shall take all reasonable actions required (i) to obtain at the earliest
practicable date all consents, waivers, approvals, authorizations and
agreements required hereunder,  and
promptly to give all notices to, effect all registrations pursuant to, and make
all other filings with or submissions to, any third parties, including, without
limitation, governmental and regulatory authorities, necessary or advisable to
authorize approve or permit the consummation of the transactions contemplated
hereby.

(b)           Each
of the parties hereto covenants and agrees, upon the terms and subject to the
conditions contained herein, to pursue diligently and in good faith and use all
reasonable efforts to take, or cause to be taken, all actions and to do, or
cause to be done, all things necessary or advisable under applicable laws and
regulations to put, consummate and make effective the transactions contemplated
hereby, subject to Seller’s obligations under the Sale Procedures Order, if
applicable.

ARTICLE VII

CONDITIONS TO SELLER’S OBLIGATIONS

The obligations of Seller
to sell the Acquired Assets and to consummate the transactions contemplated
hereby are subject to the satisfaction, on or prior to the Closing Date, of
each of the following conditions, any of which may be waived (in whole or in
part) by Seller:

7.1           Entry of Sale Approval Order or Shareholder Approval.

In the event of a
Bankruptcy Case, the Sale Approval Order shall have been entered by the
Bankruptcy Court and shall not have been stayed.  If an appeal of the Sale Approval Order is
filed and Buyer elects in its sole discretion to waive the condition to Closing
that the Sale Approval Order shall be a Final Order then Seller shall be
obligated to proceed with Closing notwithstanding the pendency of any such
appeal, unless the Sale Approval Order is stayed.  Otherwise, Seller shall have obtained
shareholder approval.

7.2           No Order Enjoining Sale; Proceedings or Litigation.

No judgment,
injunction, order or decree shall prohibit the consummation of the transactions
contemplated herein. No actions by any governmental authority shall have been
instituted for the purpose of enjoining or preventing, or which question the
validity or legality of, the transactions contemplated hereby.  No judgment, injunction, order or decree
shall prohibit the consummation of the transactions contemplated herein.

 15
 

 

7.3           Representations, Warranties and Covenants.

All
representations and warranties of Buyer contained in this Agreement shall be
true and correct in all material respects at and as of the Closing Date as if
such representations and warranties were made at and as of the Closing Date,
and Buyer shall have performed all agreements and covenants required hereby to
be performed by Buyer prior to or at the Closing Date.

7.4           Consents.

All material
consents, approvals, and waivers from third parties and governmental and
regulatory authorities required to consummate the transactions set forth herein
or contemplated hereby, if any, shall have been obtained.

ARTICLE VIII

CONDITIONS TO BUYER’S OBLIGATIONS

The obligations of
Buyer to purchase the Acquired Assets and to consummate the transactions
contemplated hereby are subject to the satisfaction, on or prior to the Closing
Date, of each of the following conditions, any of which may be waived (in whole
or in part) by Buyer:

8.1           Entry and Finality of Sale Approval Order or
Shareholder Approval.

In the event of a
Bankruptcy Case, the Sale Approval Order shall have been entered by the
Bankruptcy Court and shall have become a Final Order.  Otherwise, shareholder approval shall have
been obtained by Seller.

8.2           Representations, Warranties and Covenants.

All representations
and warranties of Seller contained in this Agreement shall be true and correct
in all material respects at and as of the Closing Date as if such
representations and warranties were made at and as of the Closing Date, and
Seller shall have performed in all material respects all agreements and
covenants required hereby to be performed by Seller prior to or at the Closing
Date.

8.3           Consents.

All material
consents, approvals, and waivers from third parties and governmental and
regulatory authorities required to consummate the transactions set forth herein
or contemplated hereby, if any, shall have been obtained.

8.4           No Order Enjoining Sale; No Proceedings or Litigation.

No actions by any
governmental authority shall have been instituted for the purpose of enjoining
or preventing, or which question the validity or legality of, the transactions
contemplated hereby.  No judgment,
injunction, order or decree shall prohibit the consummation of the transactions
contemplated herein.

 16

 

8.5           Instruments of Conveyance, Certificates.

Seller shall have
executed and delivered to Buyer all of the documents provided for in Section 3.2(a).

ARTICLE IX

OTHER AGREEMENTS

9.1           Service Provider.

(a)           From and
after the Closing Date, Buyer agrees to the handle and fulfill all customer
inquiries and requests for the Product Lines. 
In addition, from and after the Closing Date, Buyer shall perform all
governmental regulatory functions associated with the maintenance of the
Product Lines, including, without limitation, handling of customer calls and
complaints, performing any required corrections and removals, maintaining
complaint logs and filing appropriate reports with the United States Food &
Drug Administration (“FDA”), reviewing and analyzing customer complaints, and
taking corrective action (collectively, “Customer
Service and Corrective Action”) with 
regard to products manufactured by Buyer from and after the Closing
Date.  Notwithstanding anything herein to
the contrary, Buyer shall be responsible for Customer Service and Corrective
Action for the Product Lines that were manufactured by Seller prior to the
Closing Date solely to the extent required by applicable law.  In addition, Buyer assumes no responsibility or
obligation with respect to requests or governmental regulatory inquiries,
investigations, or demands that would require the filing of a Premarket
Approval Supplement with the FDA for any substantial redesign work associated
with the Product Lines or its components.

(b)           Indemnification.  Buyer shall indemnify, defend and hold Seller
and its affiliates harmless from and against any and all costs, losses,
liabilities, claims, damages or expenses (“Losses”) suffered or incurred by
Seller or any of its affiliates as a result of the activities of Buyer
undertaken under this Section 9.1 other than in the case of any Losses arising
in whole or in part from the intentionally wrongful or grossly negligent
actions of Seller from and after the Closing Date.

9.2           Risk of Loss.

Seller
acknowledges and agrees that Buyer does not have any liability or obligation to
Seller in respect of any loss, theft or damage to property experienced by
Seller at any time, whether occurring prior to, on or after the date
hereof.  If Closing occurs, Buyer shall
be entitled to the proceeds of any insurance or other proceeds payable with
respect to the losses on the Acquired Assets for loss or damage occurring prior
to the Closing Date, whether received prior to, at or after Closing.

9.3           Consents to Assignment.

Anything in this
Agreement to the contrary notwithstanding, this Agreement shall not constitute
an agreement to assign any Assumed Executory Contract or any claim or right or
any benefit arising thereunder or resulting therefrom if an attempted
assignment thereof, without the

 17
 

 

consent of a third party
thereto, would constitute a breach thereof or in any way adversely affect the
rights of Buyer thereunder and, if applicable, after taking into account the
operation of the Bankruptcy Code.  If
such consent is not obtained, or if an attempted assignment thereof would be
ineffective or would affect the rights thereunder so that Buyer would not
receive all such rights, Seller will cooperate with Buyer, in all reasonable
respects, to provide to Buyer the benefits under any such Assumed Executory
Contract, claim or right including, without limitation, enforcement for the
benefit of Buyer of any and all rights of Seller against a third party thereto
arising out of the breach or cancellation by such third party or otherwise.

ARTICLE X

MISCELLANEOUS

10.1         Termination.

This Agreement may
be terminated prior to the Closing:

(a)           by mutual
written consent executed by both Buyer and Seller (and in the event of a
Bankruptcy Case, subject to the approval of the Bankruptcy Court) at any
time;

(b)           by Buyer
if any event occurs which renders satisfaction of one or more of the conditions
to Buyer’s obligations set forth in Article VIII impossible; and

(c)           by Seller
if any event occurs which renders satisfaction of one or more of the conditions
to Seller’s obligations set forth in Article VII impossible.

10.2         In the Event of Termination; Remedies.

In the event of
termination of this Agreement pursuant to Section 10.1:

(a)           each party
shall redeliver all documents, work papers and other material of any other
party relating to the transactions contemplated hereby, whether obtained before
or after the execution hereof, to the party furnishing the same;

(b)           no
confidential information received by any party with respect to the business of
any other party or its Affiliates shall be disclosed to any third party, unless
required by law;

(c)           all
obligations of the parties hereto under this Agreement shall terminate
and there shall be no liability of any party hereto to any other party and
each party hereto shall bear its own expenses incurred in connection with the
negotiation, preparation, execution and performance of this Agreement; provided that the foregoing shall not
relieve any party of liability for damages actually incurred by any other party
as a result of any breach of this Agreement resulting from the willful
misconduct or reckless or grossly negligent act or omission of the party
permitting, causing or committing such breach; and further provided that the termination of this Agreement
shall not affect the obligations of the Buyer and the Seller under the
Confidentiality Agreement; and

 18
 

 

(d)           If this
Agreement is terminated pursuant to Section10.1 (c) , then the Deposits shall
be retained by Seller and (i) if such default occurs prior to the entry of the
Sale Approval Order, such Deposits shall be Seller’s sole and exclusive remedy
against the Buyer which consideration the parties to this Agreement agree is
reasonable and fair compensation for the foreseeable losses that might result
from such breach considering all of the circumstances existing on the date of
this Agreement, including the value of the Deposits in relation to the harm to
Seller that can be reasonably anticipated, and in recognition that proof of
actual damages would be difficult, costly or inconvenient or (ii) if such
default occurs on or after the entry of the Sale Approval Order, the retention
of such Deposit shall not be Seller’s exclusive remedy.  If this Agreement is terminated pursuant to
Section 10.1 (b), then the Deposits shall be returned to Buyer with interest,
if applicable. In the event of termination of this Agreement pursuant to
Section 10.1 (a), then the Deposits shall be returned to Buyer with interest.

10.3         Assignment; Successors.

Neither this
Agreement nor any of the rights or obligations hereunder may be assigned by any
party without the prior written consent of all other parties to this
Agreement.  Seller agrees to the
assignment by Buyer of its rights pursuant to this Agreement, to any Affiliate
of Buyer; provided that no such
assignment by Buyer shall relieve Buyer of any of its obligations hereunder and
any such assignee shall only have such rights (as limited hereunder) and
obligations as Buyer now has hereunder. 
Subject to the foregoing, this Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective representatives,
heirs, legatees, successors and permitted assigns, including without limitation
any Chapter 11 or Chapter 7 trustee appointed in the Bankruptcy Case, and no
other person shall have any right, benefit or obligation hereunder.

10.4         Notices.

All notices,
requests, demands and other communications which are required or may be given
under this Agreement shall be in writing and shall be deemed to have been duly
given when received if personally delivered; when transmitted if transmitted by
telecopy, upon receipt of telephonic confirmation; the date after it is sent,
if sent for next day delivery to a domestic address by recognized overnight
delivery service (e.g., Federal Express); and upon receipt, if sent by
certified or registered mail, return receipt requested.  In each case notice shall be:

	
  If to Seller, addressed to:

  	
   

  	
  Fischer Imaging Corp.

  
	
   

  	
   

  	
  370 Interlocken
  Blvd., Suite 400

  
	
   

  	
   

  	
  Broomfield,
  Colorado 80021

  
	
   

  	
   

  	
  Fax: (303)
  327-1576

  
	
   

  	
   

  	
  Attention: Paula
  Rosson

  
	
   

  	
   

  	
   

  
	
  with a copy to

  	
   

  	
  Douglas W.
  Jessop

  
	
  Attorneys for
  Seller:

  	
   

  	
  Jessop &
  Company, P.C.

  
	
   

  	
   

  	
  303 E 17th Avenue, Suite 930

  
	
   

  	
   

  	
  Denver, Colorado
  80203

  
	
   

  	
   

  	
  Fax: (303)
  860-7723

  

 19
 

 

 

	
  and:

  	
   

  	
  Ron Levine

  
	
   

  	
   

  	
  Davis Graham & Stubbs LLP

  
	
   

  	
   

  	
  Suite 500

  
	
   

  	
   

  	
  1550 Seventeenth Street

  
	
   

  	
   

  	
  Denver, CO 
  80202

  
	
   

  	
   

  	
  Fax: (303) 893-1379

  
	
   

  	
   

  	
   

  
	
  If to Buyer,
  addressed to:

  	
   

  	
  Byers Peak, Inc.

  
	
   

  	
   

  	
  4975 Miller Street

  
	
   

  	
   

  	
  Wheat Ridge, CO 80033

  
	
   

  	
   

  	
  Fax: 303-232-4150

  
	
   

  	
   

  	
  Attention: Doug Pruett

  
	
  with a copy to

  	
   

  	
   

  
	
  Attorneys for
  Buyer:

  	
   

  	
  Anthony A. King

  
	
   

  	
   

  	
  Minor & Brown, P.C.

  
	
   

  	
   

  	
  650 South Cherry Street, Suite 1100

  
	
   

  	
   

  	
  Denver, CO 80246

  
	
   

  	
   

  	
  Fax: 303-320-6330

  

or to such other place and with such other copies as
either party may designate as to itself by written notice to the others.

10.5         Choice of Law.

This Agreement
shall be construed and interpreted, and the rights of the parties determined in
accordance with, the laws of the State of Colorado.  Each party irrevocably consents to the
service of any and all process in any action or proceeding arising out of or
relating to this Agreement by the mailing of copies of such process to each
party at its address specified in Section 10.4.  The parties hereto irrevocably submit to the
exclusive jurisdiction of (i) the courts of the State of Colorado, (ii) if it
has or can acquire jurisdiction, in the United State District Court for the
District of Colorado, or (iii) the United States Bankruptcy Court (or any court
exercising appellate jurisdiction over the Bankruptcy Court) over any dispute
arising out of or relating to this Agreement or any other agreement or
instrument contemplated hereby or entered into in connection herewith or any of
the transactions contemplated hereby or thereby and any such dispute shall be
deemed to have arisen in the State of Colorado. 
Each party hereby irrevocably agrees that all claims in respect of such
dispute or proceedings may be heard and determined in such dispute or
proceedings may be heard and determined in such courts.  The parties hereby irrevocably waive, to the
fullest extent permitted by applicable law, any objection which they may now or
hereafter have to the laying of venue of any such dispute brought in such court
or any defense of inconvenient forum in connection therewith.

 20
 

 

10.6         Entire Agreement; Amendments and Waivers.

This Agreement,
together with all exhibits and schedules attached or to be attached hereto
constitutes the entire agreement among the parties pertaining to the subject
matter hereof and supersedes all prior agreements, understandings, negotiations
and discussions, whether oral or written, of the parties (except the
Confidentiality Agreement); provided
that the forms of agreements attached hereto as Exhibits shall be superseded by
the copies of such agreements by the parties thereto to be conclusive evidence
of such parties’ approval of any change or modification or waiver of this
Agreement shall be binding unless executed in writing by or on behalf of the
party to be bound thereby.  No waiver of
any of the provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provision hereof (whether or not similar), nor shall such
waiver constitute a continuing waiver unless otherwise expressly provided.

10.7         Construction.

The headings and
captions of the various Articles and Sections of this Agreement have been
inserted solely for purposes of convenience, are not part of this Agreement,
and shall not be deemed in any manner to modify, explain, expand or restrict
any of the provisions of this Agreement. 
Unless stated to the contrary, all references to Articles, Sections
paragraphs or clauses herein shall be to the specified Article, Section,
paragraph or clause of this Agreement, and all references to Exhibits and
Schedules shall be to the specified Exhibits and Schedules attached
hereto.  All Exhibits and
Schedules attached are made a part hereof. 
All terms defined herein shall have the same meaning in the Exhibits and
Schedules, except as otherwise provided therein.  All references in this Agreement to “this
Agreement” shall be deemed to include the Exhibits and Schedules attached
hereto.  The terms “hereby”, “hereto”, “hereunder”
and any similar terms as used in this Agreement, refer to this Agreement in its
entirety and not only to the particular portion of this Agreement where the
term is used.  Whenever in this Agreement
provision is made for the payment of attorneys’ fees, such provision shall be
deemed to mean reasonable attorneys’ fees and paralegals’ fees.  The term “including” when used herein shall
mean “including, without limitation.” 
Wherever in this Agreement the singular number is used, the same shall
include the plural, and the masculine gender shall include the feminine and
neuter genders, and vice versa, as the context shall require.

10.8         Third Party Beneficiaries.

No Person other
than the parties hereto, shall have any rights or claims under this Agreement.

10.9         No Waiver.

The failure of
either party hereto to seek redress for any breach, or to insist upon the
strict performance, of any covenant or condition of the Agreement by the other
shall not be, or be deemed to be, a waiver of the breach or failure to perform,
nor prevent a subsequent act or omission in violation of, or not strictly complying
with, the terms hereof from constituting a default hereunder.

 21
 

 

10.10       Multiple Counterparts.

This Agreement may
be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

10.11       Invalidity.

In the event that
any one or more of the provisions, or any portion thereof, contained in this
Agreement or in any other instrument referred to herein, shall, for any reason,
be held to be invalid, illegal or unenforceable in any respect, then to the
maximum extent permitted by law, such invalidity, illegality or
unenforceability shall not affect any other provision, or any portion thereof,
of this Agreement or any other such instrument.

10.12       Publicity.

No party shall
issue any press release or make any public statement regarding the transactions
contemplated hereby, without the prior approval of the other party, and the
parties hereto shall issue a mutually acceptable press release as soon as
practicable after the earlier of the Closing or the entry of the Sale Approval
Order; provided that nothing
herein shall be deemed to prohibit any party from making any disclosure which
its counsel deems necessary in order to fulfill such party’s disclosure or
notice obligations imposed by law or by the Sale Procedures Order.

10.13       Further Assurances.

Without limiting
any other rights or obligations of the parties contained in this Agreement,
following the Closing, Seller agrees to execute such documents, instruments or
conveyances and take such actions as may be reasonably requested by Buyer’s
counsel and otherwise reasonably cooperate with Buyer, its Affiliates and their
respective Representatives in connection with any action that may be necessary
or advisable to put Buyer in possession of the Assets.

10.14       Access to Books and Records.

Seller will permit
representatives of Buyer to have access at reasonable times and with reasonable
notice, and in a manner so as not to interfere with the normal business
operations of Seller, to the premises, properties, personnel, books, records
(excluding Tax records), contracts, and documents pertaining to the Acquired
Assets.  Buyer will treat and hold any
information it receives in the course of the reviews contemplated by this
section in accordance with the Confidentiality Agreement.

10.15       Cumulative Remedies.

All rights and
remedies of either party hereto are cumulative of each other and of every other
right or remedy such party may otherwise have at law or in equity, and the
exercise of one or more rights or remedies shall not prejudice or impair the
concurrent or subsequent exercise of other rights or remedies; provided, however, that any Person
pursuing any rights and remedies with respect to access to books and records
shall first agree to reasonable confidentiality restriction with Buyer.

 22
 

 

10.16       Termination of Covenants, Representations, and
Warranties.

The covenants,
representations, and warranties made by Seller and/or Buyer herein shall
terminate as of the Closing.  Buyer shall
have no right to seek indemnification subsequent to the Closing based on a
breach of a representation and/or warranty made by Seller herein or in any
other document, certificate or instrument entered into by the Seller in
connection herewith.

10.17       No Impediment to Liquidation.

Nothing herein
shall be deemed or construed so as to limit, restrict or impose any impediment
to Seller’s right to liquidate, dissolve and wind-up its affairs and to cease
all business activities and operations at such time as it may determine
following the Closing.

10.18       Representation by Counsel; Mutual Negotiation.

Each party has
been represented by counsel of its choice in negotiating this Agreement.  This Agreement shall therefore be deemed to
have been negotiated and prepared at the joint request, direction and
construction of the parties, at arm’s length, with the advice and participation
of counsel, and will be interpreted in accordance with its terms without favor
to any party.

[The remainder of this page is intentionally left
blank – signature page follows]

 23

 

IN WITNESS WHEREOF,
Fischer Imaging Corp. and Byers Peak, Inc. have caused this Asset Purchase
Agreement to be executed by their respective duly authorized officers, and have
caused their respective corporate seals to be hereunto affixed, all as of the
day and year first above written.

	
  FISCHER IMAGING CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ STEVEN
  DURNIL

  	
   

  
	
  Name:

  	
   

  	
  STEVEN DURNIL

  	
   

  
	
  Its:

  	
   

  	
  President and
  CEO

  	
   

  
	
   

  	
   

  	
   

  
	
  BYERS PEAK, INC.

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Doug K
  Pruett

  	
   

  
	
  Name:

  	
   

  	
  Doug Pruett

  	
   

  
	
  Its:

  	
   

  	
  Vice PresidentExhibit 10.01

 

EXECUTION VERSION

 

 

 

FIVE-YEAR
CREDIT AGREEMENT

 

dated as of

 

August 16,
2006,

 

among

 

 

LAUREATE
EDUCATION, INC.,

 

INICIATIVAS CULTURALES DE ESPAÑA, SL,

 

The LENDERS
Party Hereto,

 

JPMORGAN CHASE
BANK, N.A.,

as Facility Agent

 

and

 

J. P. MORGAN EUROPE LIMITED,

as London Agent

 

 

BANK OF AMERICA, N.A.,

CREDIT SUISSE,

as Co-Syndication Agents

 

LASALLE BANK NATIONAL ASSOCIATION,

SUNTRUST BANK,

HSBC BANK USA, NATIONAL
ASSOCIATION,

as Co-Documentation Agents

 

 

J.P. MORGAN
SECURITIES INC.,

 

as Sole Lead
Arranger and Bookrunner

 

[CS&M No. 6701-638]

 

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE I

  	
   

  
	
   

  	
   

  
	
  Definitions

  	
   

  
	
   

  	
   

  
	
  SECTION
  1.02.

  	
  Classification
  of Loans and Borrowings

  	
  33

  
	
  SECTION
  1.03.

  	
  Terms
  Generally

  	
  33

  
	
  SECTION
  1.04.

  	
  Accounting
  Terms; GAAP

  	
  34

  
	
  SECTION
  1.05.

  	
  Currency
  Translation

  	
  34

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
   

  	
   

  	
   

  
	
  The Credits

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  2.01.

  	
  Commitments

  	
  34

  
	
  SECTION
  2.02.

  	
  Loans and
  Borrowings

  	
  35

  
	
  SECTION
  2.03.

  	
  Requests for
  Borrowings

  	
  36

  
	
  SECTION
  2.04.

  	
  Swingline
  Loans

  	
  37

  
	
  SECTION
  2.05.

  	
  Letters of
  Credit

  	
  38

  
	
  SECTION
  2.06.

  	
  Funding of
  Borrowings

  	
  43

  
	
  SECTION
  2.07.

  	
  Interest
  Elections

  	
  44

  
	
  SECTION
  2.08.

  	
  Termination,
  Reduction and Increase of Commitments

  	
  45

  
	
  SECTION
  2.09.

  	
  Repayment of
  Loans; Evidence of Debt

  	
  48

  
	
  SECTION
  2.10.

  	
  Prepayment
  of Loans

  	
  49

  
	
  SECTION
  2.11.

  	
  Fees

  	
  50

  
	
  SECTION
  2.12.

  	
  Interest

  	
  52

  
	
  SECTION
  2.13.

  	
  Alternate
  Rate of Interest

  	
  53

  
	
  SECTION
  2.14.

  	
  Increased
  Costs

  	
  53

  
	
  SECTION
  2.15.

  	
  Break
  Funding Payments

  	
  54

  
	
  SECTION
  2.16.

  	
  Taxes

  	
  55

  
	
  SECTION
  2.17.

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

  	
  56

  
	
  SECTION
  2.18.

  	
  Mitigation
  Obligations; Replacement of Lenders

  	
  58

  
	
  SECTION
  2.19.

  	
  Foreign
  Subsidiary Costs

  	
  59

  
	
  SECTION
  2.20.

  	
  Redenomination
  of Certain Alternative Currencies

  	
  59

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
   

  	
   

  
	
  Representations and Warranties

  	
   

  
	
   

  	
   

  
	
  SECTION
  3.01.

  	
  Organization;
  Powers

  	
  60

  
	
  SECTION
  3.02.

  	
  Authorization;
  Enforceability

  	
  60

  

 

i

 

	
  SECTION
  3.03.

  	
  Governmental
  Approvals; No Conflicts

  	
  60

  
	
  SECTION
  3.04.

  	
  Financial
  Condition; No Material Adverse Change

  	
  61

  
	
  SECTION
  3.05.

  	
  Properties

  	
  61

  
	
  SECTION
  3.06.

  	
  Litigation
  and Environmental Matters

  	
  62

  
	
  SECTION
  3.07.

  	
  Compliance
  with Laws and Agreements

  	
  62

  
	
  SECTION
  3.08.

  	
  Investment
  Company Status

  	
  62

  
	
  SECTION
  3.09.

  	
  Taxes

  	
  62

  
	
  SECTION
  3.10.

  	
  ERISA

  	
  62

  
	
  SECTION
  3.11.

  	
  Disclosure

  	
  63

  
	
  SECTION
  3.12.

  	
  Subsidiaries
  and Joint Ventures

  	
  63

  
	
  SECTION
  3.13.

  	
  Solvency

  	
  63

  
	
  SECTION
  3.14.

  	
  Collateral
  Matters

  	
  63

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
   

  	
   

  
	
  Conditions

  	
   

  
	
   

  	
   

  
	
  SECTION
  4.01.

  	
  US Tranche
  Effective Date

  	
  64

  
	
  SECTION
  4.02.

  	
  Spanish
  Tranche Effective Date

  	
  66

  
	
  SECTION
  4.03.

  	
  Each Credit
  Event

  	
  67

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  
	
   

  	
   

  
	
  Affirmative Covenants

  	
   

  
	
   

  	
   

  
	
  SECTION
  5.01.

  	
  Financial
  Statements and Other Information

  	
  68

  
	
  SECTION
  5.02.

  	
  Notices of
  Material Events

  	
  69

  
	
  SECTION
  5.03.

  	
  Information
  Regarding Collateral

  	
  70

  
	
  SECTION
  5.04.

  	
  Existence;
  Conduct of Business

  	
  70

  
	
  SECTION
  5.05.

  	
  Payment of
  Obligations

  	
  71

  
	
  SECTION
  5.06.

  	
  Maintenance
  of Properties

  	
  71

  
	
  SECTION
  5.07.

  	
  Insurance

  	
  71

  
	
  SECTION
  5.08.

  	
  Books and
  Records; Inspection and Audit Rights

  	
  71

  
	
  SECTION
  5.09.

  	
  Compliance
  with Laws

  	
  71

  
	
  SECTION
  5.10.

  	
  Use of
  Proceeds and Letters of Credit

  	
  72

  
	
  SECTION
  5.11.

  	
  Subsidiaries

  	
  72

  
	
  SECTION
  5.12.

  	
  Further
  Assurances

  	
  72

  
	
  SECTION
  5.13.

  	
  Deferred
  Collateral Requirement

  	
  73

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  
	
   

  	
   

  
	
  Negative Covenants

  	
   

  
	
   

  	
   

  
	
  SECTION
  6.01.

  	
  Indebtedness;
  Certain Equity Securities

  	
  73

  
	
  SECTION
  6.02.

  	
  Liens

  	
  75

  

 

ii

 

	
  SECTION
  6.03.

  	
  Fundamental
  Changes

  	
  76

  
	
  SECTION
  6.04.

  	
  Investments,
  Loans, Advances, Guarantees and Acquisitions

  	
  77

  
	
  SECTION
  6.05.

  	
  Asset
  Transfers

  	
  78

  
	
  SECTION
  6.06.

  	
  Hedging
  Agreements

  	
  79

  
	
  SECTION
  6.07.

  	
  Restricted
  Payments; Certain Payments of Indebtedness

  	
  79

  
	
  SECTION
  6.08.

  	
  Transactions
  with Affiliates

  	
  80

  
	
  SECTION
  6.09.

  	
  Restrictive
  Agreements

  	
  80

  
	
  SECTION
  6.10.

  	
  Capital
  Expenditures

  	
  81

  
	
  SECTION
  6.11.

  	
  Net Leverage
  Ratio

  	
  81

  
	
  SECTION
  6.12.

  	
  Interest
  Expense Coverage Ratio

  	
  81

  
	
  SECTION
  6.13.

  	
  Walden
  Trademarks

  	
  81

  
	
  SECTION
  6.14.

  	
  Business of
  Subsidiaries

  	
  81

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  
	
   

  	
   

  
	
  Events of Default

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  
	
   

  	
   

  
	
  The Agents

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ARTICLE IX

  	
   

  
	
   

  	
   

  
	
  Collection Allocation Mechanism

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ARTICLE X

  	
   

  
	
   

  	
   

  
	
  Guarantee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ARTICLE XI

  	
   

  
	
   

  	
   

  
	
  Miscellaneous

  	
   

  
	
   

  	
   

  
	
  SECTION
  11.01.

  	
  Notices

  	
  89

  
	
  SECTION
  11.02.

  	
  Waivers;
  Amendments

  	
  90

  
	
  SECTION
  11.03.

  	
  Expenses;
  Indemnity; Damage Waiver

  	
  92

  
	
  SECTION
  11.04.

  	
  Successors
  and Assigns

  	
  93

  
	
  SECTION
  11.05.

  	
  Survival

  	
  96

  
	
  SECTION
  11.06.

  	
  Counterparts;
  Integration; Effectiveness

  	
  96

  

 

iii

 

	
  SECTION
  11.07.

  	
  Severability

  	
  97

  
	
  SECTION
  11.08.

  	
  Right of
  Setoff

  	
  97

  
	
  SECTION
  11.09.

  	
  Governing
  Law; Jurisdiction; Consent to Service of Process

  	
  97

  
	
  SECTION
  11.10.

  	
  WAIVER OF
  JURY TRIAL

  	
  98

  
	
  SECTION
  11.11.

  	
  Notarization

  	
  98

  
	
  SECTION
  11.12.

  	
  Headings

  	
  98

  
	
  SECTION
  11.13.

  	
  Confidentiality

  	
  99

  
	
  SECTION
  11.14.

  	
  Interest
  Rate Limitation

  	
  99

  
	
  SECTION
  11.15.

  	
  Conversion
  of Currencies

  	
  100

  
	
  SECTION
  11.16.

  	
  Release of
  Subsidiary Credit Parties and Collateral

  	
  100

  
	
  SECTION
  11.17.

  	
  USA Patriot
  Act

  	
  101

  
	
  SECTION
  11.18.

  	
  No Fiduciary
  Duty

  	
  101

  
	
  SECTION
  11.19.

  	
  Effectiveness

  	
  101

  

 

iv

 

	
  SCHEDULES:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 1.01A —

  	
  Applicable Funding Account

  	
   

  
	
  Schedule 1.01B —

  	
  Initial Designated Foreign Subsidiary Holding Companies

  	
   

  
	
  Schedule 2.01 —

  	
  Commitments

  	
   

  
	
  Schedule 2.05 —

  	
  Existing Letters of Credit

  	
   

  
	
  Schedule 3.12 —

  	
  Subsidiaries and Affiliates

  	
   

  
	
  Schedule 6.01 —

  	
  Existing Indebtedness

  	
   

  
	
  Schedule 6.02 —

  	
  Existing Liens

  	
   

  
	
  Schedule 6.04 —

  	
  Existing Investments

  	
   

  
	
  Schedule 6.09 —

  	
  Existing Restrictive Agreements

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  —

  	
  Form of Borrowing Request

  	
   

  
	
  Exhibit B

  	
  —

  	
  Mandatory Costs Rate

  	
   

  
	
  Exhibit C

  	
  —

  	
  Form of Assignment and Assumption

  	
   

  
	
  Exhibit D-1

  	
  —

  	
  Form of Opinion of DLA Piper Rudnick Gray Cary US LLP

  	
   

  
	
  Exhibit D-2

  	
  —

  	
  Form of Opinion of Houthoff Buruma

  	
   

  
	
  Exhibit D-3

  	
  —

  	
  Form of Opinion of Robert W. Zentz

  	
   

  
	
  Exhibit E-1

  	
  —

  	
  Form of US Guarantee and Collateral Agreement

  	
   

  
	
  Exhibit E-2

  	
  —

  	
  Form of Fleet Street IU Netherlands Pledge Agreement (Company)

  	
   

  
	
  Exhibit E-3

  	
  —

  	
  Form of Walden Collateral Agreement

  	
   

  
	
  Exhibit E-4

  	
  —

  	
  Form of ICE Pledge Agreement

  	
   

  
	
  Exhibit E-5

  	
  —

  	
  Form of ICE Inversiones Brazil/Escuela Superior Pledge Agreement

  	
   

  
	
  Exhibit E-6

  	
  —

  	
  Form of Laureate I BV Pledge Agreement

  	
   

  
	
  Exhibit E-7

  	
  —

  	
  Form of Non-US Guarantee Agreement

  	
   

  
	
  Exhibit E-8

  	
  —

  	
  Form of Laureate International BV Pledge Agreement

  	
   

  
	
  Exhibit E-9

  	
  —

  	
  Form of ICE Intercompany Debt Pledge Agreement

  	
   

  
	
  Exhibit E-10

  	
  —

  	
  Form of Fleet Street IU Netherlands Pledge Agreement (LEIL)

  	
   

  
	
  Exhibit F

  	
  —

  	
  Form of Perfection Certificate

  	
   

  

 

v

 

FIVE-YEAR CREDIT AGREEMENT dated as of August
16, 2006, among LAUREATE EDUCATION, INC., a Maryland corporation; INICIATIVAS
CULTURALES DE ESPAÑA, SL, a Spanish limited liability company; the LENDERS from
time to time party hereto; JPMORGAN CHASE BANK, N.A., as Facility Agent and
Collateral Agent; and J.P. MORGAN EUROPE LIMITED, as London Agent.

 

The Borrowers
(capitalized terms used and not otherwise defined herein having the meanings
assigned to them in Article I) have requested the Lenders to extend credit
in the form of (a) US Tranche Commitments under which the Company may
obtain Revolving Loans, Swingline Loans and Letters of Credit, in each case denominated
in US Dollars, in an aggregate principal or face amount not exceeding US$150,000,000
at any time outstanding and (b) Spanish Tranche Commitments under which (i)
ICE may obtain Loans and Letters of Credit, in each case denominated in Euro,
Sterling and Alternative Currencies approved by the Facility Agent and the
Spanish Tranche Lenders and, in the case of Letters of Credit, the Issuing Bank,
and (ii) the Company may obtain Loans in US Dollars, in an aggregate principal
amount at any time outstanding that will not result in the aggregate Spanish
Tranche Revolving Exposures exceeding US$100,000,000. The proceeds of
borrowings hereunder are to be used for working capital and other general
corporate purposes of the Company and the Subsidiaries, including the repayment
of amounts outstanding under the Existing Credit Agreement and the financing of
Permitted Acquisitions. The Letters of Credit will be used for general
corporate purposes of the Company and the Subsidiaries. The Lenders are willing
to extend such credit to the Borrowers on the terms and subject to the
conditions herein set forth.

 

Accordingly,
the parties hereto agree as follows:

 

ARTICLE I

 

Definitions

 

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 whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate
determined by reference to the Alternate Base Rate.

 

“Adjusted
EURIBO Rate” means, with respect to any EURIBOR Borrowing for any Interest
Period, an interest rate per annum equal to the sum of (a) the EURIBO Rate for
such Interest Period and (b) the Mandatory Costs Rate.

 

“Adjusted
LIBO Rate” means (a) with respect to any LIBOR Borrowing denominated in US
Dollars for any Interest Period, an interest rate per annum equal to the product
of (i) the LIBO Rate for such Interest Period multiplied by (ii) the Statutory
Reserve Rate and (b) with respect to any LIBOR Borrowing denominated in an 

 

 

Alternative Currency for any
Interest Period, an interest rate per annum equal to the sum of (x) the LIBO
Rate for such Interest Period plus (y) the Mandatory Costs Rate.

 

“Adjusted
Total Indebtedness” means, as of any date, Total Indebtedness on such date
minus the amount by which (a) the aggregate cash on such date of the Company
and the US Subsidiaries that are Subsidiary Credit Parties that is held in the
United States of America exceeds (b) US$20,000,000.

 

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

 

“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.

 

“Agents”
means the Facility Agent, the London Agent and the Collateral Agent.

 

“Agreement”
means this Credit Agreement.

 

“Agreement
Currency” has the meaning assigned to such term in Section 11.15(b).

 

“Alternate
Base Rate” means, for any day, a rate per annum equal to the greater of
(a) the Prime Rate in effect on such day and (b) the Federal Funds
Effective Rate in effect on such day plus 1⁄2 of 1%. Any change in the
Alternate Base Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective from and including the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively.

 

“Alternative Currency” means
(a) Euro, (b) Sterling and (c) any other currency that is freely
transferable and convertible into US Dollars in the London market and for which
LIBO Rates can be determined as provided in the definition of “LIBO Rate”,
and that has been requested by ICE in a notice to the Facility Agent and agreed
upon by the Facility Agent and all Spanish Tranche Lenders.

 

“Applicable
Agent” means (a) with respect to a Loan or Borrowing denominated in US
Dollars or any Letter of Credit, and with respect to any payment hereunder that
does not relate to a particular Loan or Borrowing, the Facility Agent, and (b) with
respect to a Loan or Borrowing denominated in an Alternative Currency, the
London Agent.

 

“Applicable
Creditor” has the meaning assigned to such term in Section 11.15(b).

 

“Applicable
Funding Account” means, as to each Borrower, the applicable account with
the Facility Agent (or one of its Affiliates) specified on Schedule 1.01A
hereto, or any other account with the Facility Agent (or one of its Affiliates)
that shall be 

 

2

 

specified in a written notice
signed by a Financial Officer and delivered to the Applicable Agent and
approved by such Applicable Agent.

 

“Applicable
Rate” means, for any day, with respect to (a) any LIBOR Revolving Loan
or any EURIBOR Revolving Loan, the applicable rate per annum set forth below
under the caption “LIBOR/EURIBOR Spread”, (b) any ABR Revolving Loan, the
applicable rate per annum set forth below under the caption “ABR Spread”, and (c) the
commitment fees payable hereunder, the applicable rate per annum set forth
below under the caption “Commitment Fee Rate”, in each case based upon the Net
Leverage Ratio as of the most recent determination date:

 

	
  Category

  	
   

  	
  Net Leverage

  Ratio

  	
   

  	
  LIBOR/EURIBOR

  Spread (basis points

  per annum)

  	
   

  	
  ABR Spread

  (basis points

  per annum)

  	
   

  	
  Commitment

  Fee Rate

  	
   

  
	
  Category 1

  	
   

  	
  > 2.50

  	
   

  	
  175.00

  	
   

  	
  75.00

  	
   

  	
  37.50

  	
   

  
	
  Category 2

  	
   

  	
  < 2.50 and > 1.50

  	
   

  	
  150.00

  	
   

  	
  50.00

  	
   

  	
  30.00

  	
   

  
	
  Category 3

  	
   

  	
  < 1.50

  	
   

  	
  125.00

  	
   

  	
  25.00

  	
   

  	
  25.00

  	
   

  

 

For purposes
of the foregoing, (i) the Net Leverage Ratio shall be determined as of the
end of each fiscal quarter of the Company’s fiscal year based upon the Company’s
consolidated financial statements delivered pursuant to Section 5.01(a) or
(b) and (ii) the Applicable Rate indicated by the Net Leverage Ratio as of
the end of each fiscal quarter shall be effective during the period commencing
on and including the third Business Day following the date of delivery to the
Facility Agent of the consolidated financial statements for such fiscal quarter
and ending on the date immediately preceding the third Business Day following
the date of delivery to the Facility Agent of the consolidated financial
statements for the next succeeding fiscal quarter; provided that (A) the
Net Leverage Ratio shall be deemed to be in Category 2 until the third
Business Day following the first delivery of financial statements pursuant to
Section 5.01(a) or (b), and (B) if any financial statements required to
have been delivered under Section 5.01(a) or (b) shall not at any time
have been delivered, the Applicable Rate shall, until such financial statements
shall have been delivered, be determined by reference to Category 1 in the
Table above.

 

“Approved
Fund” has the meaning assigned to such term in Section 11.04.

 

“Assignment
and Assumption” means an assignment and assumption entered into by a Lender
and an assignee (with the consent of any party whose consent is required by
Section 11.04), and accepted by the Facility Agent in the form of Exhibit A
or any other form approved by the Facility Agent.

 

“Attributable
Indebtedness” means, on any date, (a) in respect of any Capital Lease
of any Person, the capitalized amount thereof that would appear on a balance
sheet of such Person prepared as of such date in accordance with GAAP and
(b) in respect of any Synthetic Lease Obligation or any Sale-Leaseback
Transaction that 

 

3

 

does not result in a Capital
Lease, the capitalized amount of the remaining lease payments under the
relevant lease that would appear on a balance sheet of such Person prepared as
of such date in accordance with GAAP if such lease were accounted for as a
Capital Lease.

 

“Augmenting
Lender” has the meaning set forth in Section 2.08(d).

 

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

 

“Borrower”
means each of the Company and ICE.

 

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

 

“Borrowing Minimum” means (a) in
the case of a Borrowing denominated in US Dollars, US$3,000,000 and (b) in
the case of a Borrowing denominated in any Alternative Currency, the smallest
amount of such Alternative Currency that is an integral multiple of 100,000
units of such currency and that has a US Dollar Equivalent of at least US$3,000,000.

 

“Borrowing Multiple” means
(a) in the case of a Borrowing denominated in US Dollars, US$100,000 and
(b) in the case of a Borrowing denominated in any Alternative Currency,
100,000 units of such currency.

 

“Borrowing
Request” means a request by a Borrower for a Borrowing in accordance with
Section 2.03.

 

“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 (a) when used in connection with a LIBOR
Loan, the term “Business Day” shall also exclude any day on which banks
are not open for dealings in deposits in such currency in the London interbank
market, (b) when used in connection with EURIBOR Loan, the term “Business Day” shall also exclude
any day on which the TARGET payment system is not open for the settlement of
payments in Euros and (c) when used in connection with a Loan to ICE, “Business
Day” shall also exclude any day on which commercial banks in Spain are
authorized or required by law to remain closed.

 

“CAM”
means the mechanism for the allocation and exchange of interests in the
Tranches and the collections thereunder established under Article IX.

 

“CAM
Exchange” means the exchange of the Lenders’ interests provided for in
Article IX.

 

“CAM
Exchange Date” means the date on which any event referred to in clause (h)
or (i) of Article VII shall occur with respect to the Company.

 

4

 

“CAM
Percentage” means, as to each Lender, a fraction, expressed as a decimal,
of which (a) the numerator shall be the sum of the US Dollar Equivalents
(determined on the CAM Exchange Date on the basis of Exchange Rates prevailing
on the CAM Exchange Date) of the Specified Obligations owed to such Lender and
(b) the denominator shall be the sum of the US Dollar Equivalents (as so
determined) of the Specified Obligations owed to all the Lenders.

 

“Capital
Expenditures” means, for any period, (a) the additions to property, plant
and equipment and other capital expenditures of the Company and its
consolidated Subsidiaries that are (or should be) set forth in a consolidated
statement of cash flows of the Company for such period prepared in accordance
with GAAP and (b) Capital Lease Obligations incurred by the Company and its
consolidated Subsidiaries during such period.

 

“Capital
Lease Obligations” means, with respect to any Person, as of the date of
determination, the obligations of such Person under any lease required to be
capitalized on the balance sheet of such Person in accordance with GAAP applied
on a consistent basis. The amount of the obligations under any Capital Lease as
of any date shall be deemed to be the amount of Attributable Indebtedness in
respect thereof as of such date.

 

“Cash
Collateralize” has the meaning set forth in Section 2.05(j).

 

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

 

“Change of
Control” means (a) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the
Exchange Act and the rules of the SEC thereunder as in effect on the date
hereof) of Equity Interests representing more than 25% of either the aggregate
ordinary voting power or the aggregate equity value represented by the issued
and outstanding Equity Interests in 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 of control” or similar event, however denominated,
under the terms of any instrument or agreement evidencing or governing any
Indebtedness of the Company; or (e) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person other than the Company or
a wholly owned subsidiary of the Company of any Equity Interest in ICE.

 

“Charges” has the meaning set forth in Section 11.13.

 

5

 

“Chilean
Student Loan Securitization Transaction” means any transfer by UNAB or UDLA
of student loans or related accounts receivable or interests therein
(collectively, “Chilean Student Loans”) (a) to a trust, partnership,
corporation or other “conduit” entity, which transfer is funded in whole or in
part, directly or indirectly, by the incurrence or issuance by the transferee
or any successor transferee of Indebtedness or other securities that are to
receive payments from, or that represent interests in, the cash flow derived
from such Chilean Student Loans, or (b) directly to one or more investors.
The “amount” of any Chilean Student Loan Securitization Transaction shall be
deemed at any time to be the aggregate principal or stated amount of the
Indebtedness or other securities referred to in clause (a) of the preceding
sentence or, if there shall be no such principal or stated amount or such
Chilean Student Loan Securitization Transaction shall be in the form of a direct
sale to one or more investors, the uncollected amount of the Chilean Student
Loans transferred pursuant to such Securitization Transaction net of any such
Chilean Student Loans that have been written off as uncollectible.

 

“Class”,
when used in reference to (a) any Loan or Borrowing, refers to whether
such Loan, or the Loans comprising such Borrowing, are US Tranche Revolving
Loans, Swingline Loans or Spanish Tranche Revolving Loans and (b) any
Commitment, refers to whether such Commitment is a US Tranche Commitment or a Spanish
Tranche Commitment.

 

“Closing
Date” means the date of this Agreement.

 

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

 

“Collateral”
means any and all “Collateral”, as defined in any applicable Credit Support
Document.

 

“Collateral
Agent” means JPMCB, in its capacity as collateral agent for the Secured
Parties.

 

“Commitment”
means a US Tranche Commitment or a Spanish Tranche Commitment. The aggregate
amount of the Lenders’ Commitments as of the Closing Date is US$250,000,000.

 

“Commitment
Increase” has the meaning set forth in Section 2.08(e).

 

“Company”
means Laureate Education, Inc., a Maryland corporation.

 

“Company
Non-Owned EBITDA Amount” means, for any period, for each Subsidiary (other
than any Excluded Subsidiary)  the Equity
Interests of which are not directly or indirectly wholly owned by the Company,
an amount equal to the product of (a) the portion of Consolidated EBITDA
attributable to such Subsidiary multiplied by (b) the percentage (expressed as
a decimal) of the Equity Interests of such Subsidiary not directly or
indirectly owned by the Company.

 

6

 

“Consolidated
Adjusted EBITDA” means, for any period, (a) Consolidated EBITDA for such
period minus, (b) without duplication, and to
the extent included in the calculation of Consolidated EBITDA, (i) that portion
of Consolidated EBITDA for such period attributable to Excluded Subsidiaries
and (ii) Consolidated Non-Owned EBITDA for such period.

 

“Consolidated
EBITDA” means, for any period, Consolidated Operating Income for such
period plus (a) without duplication and to the extent deducted in determining
such Consolidated Operating Income for such period, the sum of (i) all amounts
attributable to depreciation and amortization for such period and (ii) non-cash
stock option expense or other non-cash equity-related compensation expense for
such period, and minus (b) any cash expenditures during such period related to
non-cash charges referred to in subclause (ii) of the preceding clause (a)
during prior periods, all determined on a consolidated basis in accordance with
GAAP. In the event that there shall have occurred any acquisition or
disposition by the Company or a Subsidiary of a business or business unit
during any period for which Consolidated EBITDA is to be determined (other than
any acquisition or disposition in which the aggregate value of the
consideration paid or received is less than US$1,000,000), such determination
shall be made on a pro forma basis (in accordance with Regulation S-X under the
Securities Act of 1933) as if such acquisition or disposition and any related
incurrence or repayment of Indebtedness had occurred on the first day of such
period.

 

“Consolidated
Interest Expense” means, for any period, the interest expense (including
imputed interest expense in respect of Capital Lease Obligations) of the
Company and the Subsidiaries for such period, determined on a consolidated
basis in accordance with GAAP.

 

“Consolidated
Non-Owned EBITDA”  means the sum of
the Company Non-Owned EBITDA Amounts for all the Subsidiaries (other than
Excluded Subsidiaries) the Equity Interests of which are not directly or
indirectly wholly owned by the Company that are included in the calculation of
Consolidated EBITDA.

 

“Consolidated
Operating Income” means, for any period, the operating income of the
Company and the Subsidiaries for such period, determined on a consolidated
basis in accordance with GAAP.

 

“Consolidated Tangible Assets” means, with respect to any Person,
the aggregate amount of assets of such Person (less applicable reserves and
other properly deductible items) after deducting therefrom (to the extent
otherwise included therein) all goodwill, trade names, trademarks, patents,
unamortized debt discount and expense and other like intangibles, all as set
forth on the books and records of such Person and its consolidated Subsidiaries
and computed in accordance with GAAP.

 

“Control”
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies, or the dismissal or appointment of
the management, of a Person, whether through the ability to exercise 

 

7

 

voting power, by contract or
otherwise. “Controlling” and “Controlled” have meanings
correlative thereto.

 

“Credit
Parties” means each Borrower and each Subsidiary Credit Party.

 

“Credit
Support Documents” means the US Guarantee and Collateral Agreement, the
Walden Collateral Agreement, the Fleet Street IU Netherlands Pledge Agreement
(Company), the Fleet Street IU Netherlands Pledge Agreement (LEIL), the ICE
Pledge Agreement, the Foreign Pledge Agreements, the Laureate I BV Pledge
Agreement, the Laureate International BV Pledge Agreement, the ICE Inversiones
Brazil/Escuela Superior Pledge Agreement, the ICE Intercompany Debt Pledge
Agreement, the Non-US Guarantee Agreements, each guarantee agreement referred
to in clause (a)(v) and (a) (vii)(B) of the definition of “Guarantee and
Collateral Requirement” and each other agreement, instrument or document
delivered pursuant to Section 5.11 or 5.12 or otherwise to guarantee or secure
any of the Obligations.

 

“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.

 

“Deferred
Collateral Requirement” means the requirement that the following clauses of
the definition of “Guarantee and Collateral Requirement” shall be satisfied:
(i) clause (a)(iv); (ii) clause (b) insofar as it requires the pledge of Equity
Interests of ICE; and (iii) clause (d) and clause (e) insofar as they are
applicable to the pledge referred to in the clauses of the definition of “Guarantee
and Collateral Requirement” listed in this definition.

 

“Designated
Foreign Subsidiary Holding Company” means (a) each of the Subsidiaries
listed on Schedule 1.01B; and (b) each other Holding Company Subsidiary (other
than ICE and any Subsidiary organized in the United States of America) that
directly or indirectly (other than through ICE) owns Equity Interests in one or
more Operating Subsidiaries; provided, that no Foreign Subsidiary shall
constitute a Designated Foreign Subsidiary Holding Company under this clause
(b) if and for so long as (i) the furnishing of a guarantee of the Spanish
Obligations by such Foreign Subsidiary would violate applicable law, expose the
Company or its subsidiaries to material tax liabilities or expose the directors
of such Foreign Subsidiary to a material risk of personal liability and (ii)
the Collateral Agent shall have received a certificate of the Company, based on
the advice of counsel, to such effect.

 

“EMU
Legislation” means the legislative measures of the European Union for the
introduction of, changeover to or operation of the Euro in one or more member
states.

 

“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 

 

8

 

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 such
equity interest.

 

“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 Borrower, is treated as a single employer under
Section 414(b) or (c) of the Code or, solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.

 

“ERISA
Event” 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
existence with respect to any Plan of an “accumulated funding deficiency” (as
defined in Section 412 of the Code or Section 302 of ERISA), whether
or not waived; (c) the filing pursuant to Section 412(d) of the Code
or Section 303(d) of ERISA of an application for a waiver of the minimum
funding standard with respect to any Plan; (d) the incurrence by the Borrower
or any of its ERISA Affiliates of any liability under Title IV of ERISA
with respect to the termination of any Plan; (e) the receipt by the
Borrower 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 Borrower or any of
its ERISA Affiliates of any liability with respect to the withdrawal or partial
withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the
Borrower or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.

 

“Euro” or “€” means the
single currency of the European Union as constituted by the Treaty on European
Union and as referred to in the EMU Legislation.

 

9

 

“EURIBO Rate”
means, with respect to any EURIBOR Borrowing for any Interest Period, (a) the
applicable Screen Rate or (b) if no Screen Rate is available for such Interest
Period, the arithmetic mean of the rates quoted by the Reference Banks to
leading banks in the Banking Federation of the European Union for the offering
of deposits for a period comparable to such Interest Period, in each case as of
the Specified Time on the Quotation Day.

 

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

 

“Euro” or “€” means the
single currency of the European Union as constituted by the Treaty on European
Union and as referred to in the EMU Legislation.

 

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

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Exchange Rate” means on any day,
for purposes of determining the US Dollar Equivalent of any other currency, the
rate at which such other currency may be exchanged into US Dollars at the time
of determination on such day on the Reuters WRLD Page for such currency. In the
event that such rate does not appear on any Reuters WRLD Page, the Exchange
Rate shall be determined by reference to such other publicly available service
for displaying exchange rates as may be agreed upon by the Applicable Agent and
the Company, or, in the absence of such an agreement, such Exchange Rate shall
instead be the arithmetic average of the spot rates of exchange of the Applicable
Agent in the market where its foreign currency exchange operations in respect
of such currency are then being conducted, at or about such time as the Applicable
Agent shall elect after determining that such rates shall be the basis for
determining the Exchange Rate, on such date for the purchase of US Dollars 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 Applicable Agent may use any reasonable method it
deems appropriate to determine such rate, and such determination shall be
conclusive absent manifest error.

 

“Excluded
Subsidiary” means any Subsidiary that is subject to any charter,
contractual, legal, regulatory or other restriction limiting in any material
respect the ability of such Subsidiary to dividend its income to the holders of
its Equity Interests (other than general restrictions imposed by law on
dividends that would impair the capital of a Subsidiary, render it insolvent or
constitute a fraudulent transfer, and other than generally applicable
withholding taxes on dividends); provided, that for purposes of this
definition, restrictions on the payment of dividends by Glion Group and UDLA
contained in the Glion Group Mortgages and UDLA Mortgages shall be disregarded
so long as the Indebtedness under such mortgages shall be immediately
prepayable (subject to any customary notice period) without penalty at the sole
discretion of such Subsidiaries.

 

10

 

“Excluded
Taxes” means (a) with respect to any Lender, (i) income or franchise taxes
imposed on (or measured by) its net income by the United States of America or
by the jurisdiction under the laws of which such Lender is organized, in which
its principal office is located or in which its applicable lending office is
located, (ii) any branch profits taxes imposed by the United States of America
or any similar tax imposed by any other jurisdiction described in clause (a)(i)
above, (iii) any withholding tax that is attributable to the failure of such
Lender to comply with Section 2.16(e) and (iv) any withholding tax that is
imposed by the United States of America on amounts payable by the Company from
locations within the United States of America to such Lender’s US Tranche
Lending Office at the time such Lender becomes a party to this Agreement (or
designates a new US Tranche Lending Office) (assuming the taking by the
applicable Borrower of all actions required in order for available exemptions
from such tax to be effective), except to the extent that such Lender (or its
assignor, if any) was entitled, at the time of designation of a new lending
office (or assignment), to receive additional amounts with respect to such
withholding tax pursuant to Section 2.16(a), and (b) with respect to any Spanish
Tranche Lender (other than a Lender that becomes a Spanish Tranche Lender through
an assignment under Section 2.18 or by operation of the CAM), any withholding
tax that is imposed on amounts payable by ICE by the Kingdom of Spain on
amounts payable from locations within such jurisdiction to such Lender’s Spanish
Tranche Lending Office designated for ICE at the time such Lender becomes a
party to this Agreement (or designates a new Spanish Tranche Lending Office for
ICE) (assuming the taking by the applicable Borrower of all actions required in
order for available exemptions from such tax to be effective), except to the
extent that such Lender (or its assignor, if any) was entitled, at the time of
designation of a new lending office (or assignment), to receive additional
amounts with respect to such withholding tax pursuant to Section 2.16(a).

 

“Exposure”
means a US Tranche Revolving Exposure or Spanish Tranche Revolving Exposure.

 

“Existing
Credit Agreement” means the Credit Agreement dated as of October 26, 2005,
among the Company, certain Subsidiaries, the lenders party thereto and Bank of
America, N.A., as administrative agent.

 

“Existing
Letters of Credit” means each letter of credit previously issued for the
account of the Company pursuant to the Existing Credit Agreement that is
outstanding on the US Tranche Effective Date and listed on Schedule 2.05,
but shall not include any renewal or extension of any Existing Letter of
Credit.

 

“Facility
Agent” means JPMCB, in its capacity as facility agent for the Lenders
hereunder and under the Loan Documents or, as applicable, such Affiliates
thereof as it shall from time to time designate by notice to the Company and
the Lenders for the purpose of performing its obligations hereunder.

 

“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

 

11

 

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 Facility 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.

 

“Fleet
Street IU Netherlands” means Fleet Street International Universities CV, a
wholly owned subsidiary of the Company.

 

“Fleet
Street IU USA” means Fleet Street International University Holdings LLC, a Maryland
limited liability company and a wholly owned subsidiary of the Company.

 

“Fleet
Street IU Netherlands Pledge Agreement (Company)” means a Pledge Agreement
substantially in the form of Exhibit E-2.

 

“Fleet
Street IU Netherlands Pledge Agreement (LEIL)” means a Pledge Agreement
substantially in the form of Exhibit E-2.

 

“Foreign
Pledge Agreement” means a pledge or charge agreement with respect to the
Collateral that constitutes Equity Interests of a Foreign Subsidiary, in form
and substance reasonably satisfactory to the Collateral Agent.

 

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

 

“FSIUH
Holding Company” means FSIUH Holding Company, a wholly owned subsidiary of
the Company.

 

“GAAP”
means generally accepted accounting principles in the United States,
consistently applied.

 

“Glion
Group” means Glion Group SA, a wholly owned subsidiary of the Company.

 

“Glion
Group Mortgages” means (a) the mortgages dated as of November 16, 2003 and
January 1, 2005 between Glion Group and Banque Cantonal Fribourg, (b) the
mortgages dated as of November 11, 2003 and October 27, 2004 between Glion
Group and Banque Cantonal Vaud, and (c) the mortgages dated as of August 1,
2002, December 31, 2003 and June 1, 2006 between Glion Group and Union Bank of
Switzerland.

 

“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 

 

12

 

exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions
of or pertaining to government.

 

“Guarantee”
means, as to any Person (the “Guarantor”), any obligation, contingent or
otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness 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 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 of the payment
thereof (including pursuant to any “synthetic lease” financing), (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 (d) as an account party in respect of any letter of
credit or letter of guaranty issued to support such Indebtedness; provided,
that the term Guarantee shall not include endorsements for collection or
deposit in the ordinary course of business. The terms “Guaranteed” and “Guarantor”
shall have correlative meanings.

 

“Guarantee and Collateral Requirement” means, at any time, the
requirement that:

 

(a) the Facility Agent shall have received
(i) either (A) a counterpart of the US Guarantee and Collateral Agreement
duly executed and delivered by the Company and each US Material Subsidiary
(other than Walden University, Inc.) and each US Subsidiary directly or
indirectly owning any Equity Interest in ICE (it being understood that the US
Guarantee and Collateral Agreement shall not require Laureate Education
International Ltd., FSIUH Holding Company or Fleet Street IU USA to guarantee the
US Obligations or pledge Equity Interests to secure the US Obligations) or
(B) in the case of any Person that becomes a US Material Subsidiary or a
US Subsidiary directly or indirectly owning any Equity Interest in ICE after
the US Tranche Effective Date (other than Walden University, Inc.), a
supplement to the US Guarantee and Collateral Agreement, in the form specified
therein, duly executed and delivered by such Person; (ii) a counterpart of the
Walden Collateral Agreement duly executed and delivered by Walden University,
Inc.; (iii) a counterpart of a Fleet Street IU Netherlands Pledge Agreement (Company)
duly executed and delivered by the Company; (iv) a counterpart of the ICE
Pledge Agreement duly executed and delivered by Fleet Street IU USA; (v) in the
case of any Foreign Subsidiary directly or indirectly owning any Equity
Interest in ICE, a counterpart of any guarantee agreement and Foreign Pledge
Agreement that the Facility Agent shall determine, based on the advice of
counsel, to be necessary or advisable in connection with the guarantee by such
Foreign Subsidiary of the Spanish Obligations and the pledge of, or the
granting of security interests in, any Equity Interests directly owned by such
Foreign Subsidiary to secure the Spanish Obligations, in each case duly
executed and delivered by such Foreign Subsidiary; (vi)(A) a counterpart of the
Laureate I BV Pledge Agreement duly executed and delivered by ICE and (B) a
counterpart 

 

13

 

of the ICE
Inversiones Brazil/Escuela Superior Pledge Agreement duly executed and
delivered by ICE; (vii) either (A) a counterpart of a Non-US Guarantee
Agreement duly executed and delivered by each Designated Foreign Subsidiary
Holding Company or (B) in the case of any Person that becomes a Designated
Foreign Subsidiary Holding Company after the Spanish Tranche Effective Date, a counterpart of any other guarantee agreement that the
Facility Agent determines, based on the advice of counsel, to be necessary or
advisable in connection with the guarantee by such Person of the Spanish
Obligations, each such guarantee agreement to be duly executed and delivered by
each Person party thereto; (viii) a counterpart of the Laureate International
BV Pledge Agreement duly executed and delivered by Laureate I BV; (ix) a
counterpart of the ICE Intercompany Debt Pledge Agreement duly executed and
delivered by ICE; and (x) a counterpart of a Fleet Street IU Netherlands Pledge
Agreement (LEIL) duly executed and delivered by Laureate Education
International Ltd.;

 

(b) all outstanding Equity Interests of Laureate
International BV and each Subsidiary (other than Prouniversidad SL, Promotora
Proyecto UIM, SL or Rede Internacional de Universidades Laureate, Ltda.) owned
directly by the Company, any US Material Subsidiary, ICE or any Subsidiary
directly or indirectly owning any Equity Interest in ICE shall have been
pledged pursuant to the US Guarantee and Collateral Agreement or a Foreign
Pledge Agreement or otherwise (except that (i) no more than 65% of the
outstanding voting Equity Interests of Laureate Education International Ltd.,
FSIUH Holding Company and any Foreign Subsidiary directly owned by the Company
or a US Subsidiary shall be required to be pledged to secure the US Obligations,
(ii) the Equity Interests of Fleet Street IU USA, Wall Street International
Holdings US I, Inc. and Foreign Subsidiaries directly owned by a Foreign
Subsidiary shall not be required to be pledged to secure the US Obligations and
(iii) the Equity Interests of Fleet Street IU Netherlands owned by Fleet Street
IU USA shall not be required to be pledged to secure the US Obligations or the
Spanish Obligations), and the Collateral Agent shall have received certificates
or other instruments representing all such Equity Interests (to the extent
certificated), together with undated stock powers or other instruments of transfer
with respect thereto endorsed in blank that the Facility Agent determines,
based on the advice of counsel, to be necessary or advisable in connection with
such pledge;

 

(c) all Indebtedness of the Company (other
than Indebtedness owing to Walden University, Inc.) and each Subsidiary that is
owing to the Company, any US Material Subsidiary or ICE shall be evidenced by a
promissory note and shall be pledged and endorsed in guarantee (“endosados en garantía”) pursuant to the US Guarantee and
Collateral Agreement, the ICE Intercompany Debt Pledge Agreement or otherwise,
and the Collateral Agent shall have received all such promissory notes,
together with undated instruments of transfer with respect thereto endorsed in
blank;

 

(d) all documents, notices, instruments and
actions, including the filing of Uniform Commercial Code financing statements,
filings with the United States 

 

14

 

Patent and
Trademark Office, filings with the relevant public registries and registrations
on the registry books of shareholders required by law or reasonably requested
by the Collateral Agent to create the Liens intended to be created by the
Credit Support Documents and to perfect such Liens to the extent and with the
priority required by the Credit Support Documents shall have been filed,
registered, recorded (or delivered to the Collateral Agent for filing,
registration or recording) or taken;

 

(e) the Company, each US Material Subsidiary
or US Subsidiary directly or indirectly owning any Equity Interest in ICE, ICE,
Fleet Street IU Netherlands, Laureate I BV, each other Foreign Subsidiary (if
any) directly or indirectly owning any Equity Interest in ICE and each
Designated Foreign Subsidiary Holding Company shall have obtained all consents
and approvals required to be obtained by it in connection with the execution
and delivery of all Credit Support Documents to which it is a party, the
performance of its obligations thereunder and the granting by it of the Liens
thereunder.

 

The foregoing
definition shall not require the creation or perfection of pledges of or
security interests in particular assets if and for so long as, in the judgment
of the Collateral Agent, the cost of creating or perfecting such pledges or
security interests in such assets would be excessive in view of the benefits to
be obtained by the Lenders therefrom. The Collateral Agent may grant extensions
of time for the perfection of security interests in particular assets or
delivery of Non-US Guarantee Agreements and related opinions of counsel where
it determines that such perfection or delivery cannot be accomplished without
undue effort or expense by the time or times at which they would otherwise be
required by this Agreement or the Credit Support Documents.

 

“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.

 

“Hedging
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 Hedging Agreement.

 

“Holding
Company Subsidiary” means a Wholly Owned Subsidiary that (a) does not own
any assets other than Equity Interests in other Subsidiaries and other
incidental assets and (b) does not directly engage in any business (other than
activities 

 

15

 

incidental to the maintenance
of its existence or the ownership of the Equity Interests referred to in the
preceding clause (a)).

 

“ICE”
means Iniciativas Culturales de Espana, SL, a Spanish limited liability company
and a wholly owned subsidiary of the Company.

 

“ICE
Inversiones Brazil/Escuela Superior Pledge Agreement” means a Pledge of
Participations substantially in the form of Exhibit E-5.

 

“ICE Pledge
Agreement” means a Pledge of Participations substantially in the form of Exhibit
E-4.

 

“ICE
Intercompany Debt Pledge Agreement” means a Pledge Agreement substantially
in the form of Exhibit E-9.

 

“Increase
Effective Date” has the meaning set forth in Section 2.08(e).

 

“Increasing
Lender” has the meaning set forth in Section 2.08(d).

 

“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
payable incurred in the ordinary course of business and earn-out obligations
that do not constitute balance sheet liabilities under GAAP), (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) Capital Lease Obligations, Sale-Leaseback
Transactions and Synthetic 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, (k) in the
case of UNAB and UDLA, all Chilean Student Loan Securitization Transactions
(except that sales of Chilean Student Loans directly to investors, and not to
any conduit entity, for cash in one or more non-recourse, true sale
transactions shall not be deemed to constitute Indebtedness under this clause
to the extent that the aggregate outstanding principal amount of the Chilean
Student Loans sold in such transactions does not exceed US$50,000,000); and (l)
in the case of any Subsidiary, all Preferred Stock of such Person (the “amount”
of any such Preferred Stock being deemed to be the liquidation preference thereof).
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 

 

16

 

relationship with such entity,
except to the extent the terms of such Indebtedness provide that such Person is
not liable therefor.

 

“Indemnitee”
has the meaning set forth in Section 11.03(b).

 

“Indemnified
Taxes” means Taxes other than Excluded Taxes.

 

“Information
Memorandum” means the Confidential Information Memorandum dated May 2006
relating to the Borrowers and the Transactions.

 

“Initial
Loans” has the meaning set forth in Section 2.08(e).

 

“Intercompany
Debt Holding Company” means a wholly owned Delaware Subsidiary to be formed
by the Company solely for the purpose of receiving transfers of and holding
Indebtedness and accounts receivable owed by Subsidiaries to the Company or to
other Subsidiaries.

 

“Interest
Election Request” means a request by the relevant Borrower to convert or
continue a Borrowing in accordance with Section 2.07.

 

“Interest
Payment Date” means (a) with respect to any ABR Loan (including any
Swingline Loan), the last day of each March, June, September and December and
(b) with respect to any LIBOR Loan or EURIBOR 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 LIBOR Borrowing or a EURIBOR 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.

 

“Interest
Period” means, with respect to any LIBOR Borrowing or EURIBOR 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 may elect; provided
that (a) 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 (b) 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 thereafter shall be the effective date of the most recent
conversion or continuation of such Borrowing.

 

“Investment”
has the meaning set forth in Section 6.04.

 

“Issuing
Bank” means JPMCB, in its capacity as the issuer of Letters of Credit
hereunder, and its successors in such capacity as provided in Section 2.05(i)
and, in respect of the Existing Letters of Credit only, the issuers of such
Existing Letters of 

 

17

 

Credit, as set forth in Schedule 2.05.
The Issuing Bank may, in its discretion, arrange for one or more Letters of
Credit to be issued by Affiliates of the Issuing Bank, in which case the term “Issuing
Bank” shall include any such Affiliate with respect to Letters of Credit
issued by such Affiliate.

 

“JPMCB”
means JPMorgan Chase Bank, N.A.

 

“Judgment Currency” has the
meaning assigned to such term in Section 11.14(b).

 

“Laureate I
BV Pledge Agreement” means a Pledge Agreement substantially in the form of Exhibit
E-6.

 

“Laureate
International BV Pledge Agreement” means a Pledge Agreement substantially
in the form of Exhibit E-8.

 

“LC
Disbursement” means a US Tranche LC Disbursement or a Spanish Tranche LC
Disbursement.

 

“LC
Exposure” means the US Tranche LC Exposure and the Spanish Tranche LC
Exposure.

 

“Lenders”
means the Persons listed on Schedule 2.01 and any other Person that
shall have become a party hereto 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.

 

“Lending
Office” means any US Tranche Lending Office or any Spanish Tranche Lending
Office.

 

“Letter of
Credit” means a US Tranche Letter of Credit or a Spanish Tranche Letter of
Credit.

 

“LIBO Rate”
means, with respect to any LIBOR Borrowing denominated in any currency for any
Interest Period, (a) the applicable Screen Rate or (b) if no Screen Rate is
available for such currency or for such Interest Period, the arithmetic mean of
the rates quoted by the Reference Banks to leading banks in the London
interbank market for the offering of deposits in such currency and for a period
comparable to such Interest Period, in each case as of the Specified Time on
the Quotation Day.

 

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

 

“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 

 

18

 

lease, Sale-Leaseback
Transaction, synthetic lease or title retention agreement (or any financing
lease having substantially the same economic effect as any of the foregoing)
relating to such asset and (c) in the case of securities, any purchase
option, call or similar right of a third party with respect to such securities.

 

“Loan
Documents” means this Agreement, the Credit Support Documents and each
promissory note delivered pursuant to this Agreement.

 

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

 

“Local Time”
means (a) with respect to a Loan or Borrowing denominated in US Dollars or
any Letter of Credit, New York City time and (b) with respect to a
Loan or Borrowing denominated in an Alternative Currency, London time.

 

“London
Agent” means J.P. Morgan Europe Limited.

 

“Mandatory
Costs Rate” has the meaning set forth in Exhibit B.

 

“Material
Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the business, assets, operations, liabilities (actual or
contingent), condition (financial or otherwise) or prospects of the Company and
the Subsidiaries, taken as a whole, (b) a material impairment of the
ability of any Credit Party to perform its obligations under any Loan Document
to which it is a party or (c) a material adverse effect upon the legality,
validity, binding effect or enforceability against any Credit Party of any Loan
Document to which it is a party or on the rights of or benefits available to
the Lenders under this Agreement.

 

“Material
Indebtedness” means Indebtedness (other than the Loans and Letters of
Credit), or obligations in respect of one or more Hedging Agreements, of any
one or more of the Company and the Subsidiaries in an aggregate amount
exceeding US$5,000,000. For purposes of determining Material Indebtedness, the “amount”
of the obligations of the Company or any Subsidiary in respect of any Hedging
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 Hedging Agreement were terminated at such time.

 

“Material
Subsidiary” means any Subsidiary (a) the consolidated assets of which equal
2% or more of the consolidated assets of the Company and the Subsidiaries as of
the last day of the most recent fiscal quarter of Borrower for which financial
statements have been delivered pursuant to Section 5.01(a) or (b) (or, prior to
the delivery of any such financial statements, as of March 31, 2006), or (b)
the consolidated revenues of which equal 2% or more of the consolidated
revenues of the Company and the Subsidiaries for the most recent period of four
consecutive fiscal quarters for which financial statements have been delivered
pursuant to Section 5.01(a) or (b) (or, prior to the delivery of any such
financial statements, for the period of four consecutive fiscal quarters ended March
31, 2006); provided that if at the end of the most recent fiscal quarter
or for the most recent period of four consecutive fiscal quarters the
consolidated 

 

19

 

assets or consolidated revenues
of all Subsidiaries that under clauses (a) and (b) above would not constitute
Material Subsidiaries shall have exceeded 5% of the consolidated assets or 5%
of the consolidated revenues of the Company and the Subsidiaries, then one or
more of such excluded Subsidiaries shall for all purposes of this Agreement be
deemed to be Material Subsidiaries in descending order based on the amounts of
their consolidated assets until such excess shall have been eliminated.
Notwithstanding any other provision herein, the Intercompany Debt Holding
Company shall constitute a Material Subsidiary.

 

“Maturity
Date” means August 16, 2011, or, if such day is not a Business Day, the
next preceding Business Day.

 

“Maximum
Rate” has the meaning set forth in Section 11.14.

 

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

 

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

 

“Net
Leverage Ratio” means, on any date, the ratio of (a) Adjusted Total
Indebtedness as of such date to (b) Consolidated Adjusted EBITDA for the period
of four consecutive fiscal quarters of the Company ended on such date (or, if
such date is not the last day of a fiscal quarter, ended on the last day of the
fiscal quarter of the Company most recently ended prior to such date).

 

“Non-Increasing
Lender” has the meaning set forth in Section 2.08(d).

 

“Non-US
Guarantee Agreement” means a Guarantee Agreement substantially in the form
of Exhibit E-7 or another form approved by the Facility Agent for the
guarantee of the Spanish Obligations.

 

“Obligations”
means, collectively, the US Obligations and the Spanish Obligations.

 

“Operating
Subsidiary” means any Subsidiary that directly owns, operates or provides
services to one or more educational institutions or that directly engages in
one or more other businesses.

 

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

 

“Participant”
has the meaning set forth in Section 11.04(c)(i).

 

“Patriot
Act” means the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of
Pub. L. No. 107-56 (signed into law October 26, 2001)).

 

20

 

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

 

“Perfection
Certificate” means a certificate in the form of Exhibit F or any
other form approved by the Collateral Agent.

 

“Permitted
Acquisition” means any acquisition by the Company or a Subsidiary of (a) Equity
Interests (other than directors’ qualifying shares) in any Person as a result
of which such Person becomes a Subsidiary, or (b) all or substantially all the
assets of, or all or substantially all the assets constituting a division or
line of business of, any Person; provided that (i) no Default has
occurred and is continuing or would result therefrom, (ii) such acquisition and
all transactions related thereto are consummated in accordance with applicable
laws, (iii) all actions required to be taken with respect to such acquired or
newly-formed Subsidiary or such acquired assets under Section 5.11 shall have
been taken (or simultaneously with the consummation of such acquisition shall
be taken), (iv) the business of such Person or such assets, as the case may be,
constitutes a business permitted by Section 6.03(b), and (v) the Company has delivered
to the Facility Agent a certificate of a Financial Officer confirming the
satisfaction of the conditions set forth in clauses (i) through (iv) above and
setting forth computations demonstrating that, giving pro forma effect to such
acquisition and any related incurrence or repayment of Indebtedness, the Net
Leverage Ratio as of the most recent fiscal quarter end for which financial
statements shall have been delivered pursuant to Section 5.01(a) or (b), shall
be not greater than the maximum Net Leverage Ratio permitted as of such quarter
end under Section 6.11 reduced by 0.25.

 

“Permitted
Encumbrances” means:

 

(a) Liens imposed by law for taxes that
are not yet due or are being contested in compliance with Section 5.05;

 

(b) carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s, landlord’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 60 days or are being contested in compliance with
Section 5.05;

 

(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

 

(f) easements, zoning restrictions,
rights-of-way and other encumbrances on real property imposed by law or arising
in the ordinary course of business that 

 

21

 

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 US$500,000,000;

 

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

 

(e) money market funds that (i) comply with the criteria set forth
in Securities and Exchange Commission 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 US$5,000,000,000.

 

“Permitted Refinancing Indebtedness” means, in respect of any
Indebtedness (the “Original Indebtedness”), Indebtedness the Net
Proceeds of which are applied to refund, refinance, repurchase or retire such
Original Indebtedness; provided that: (a) the principal amount of such Permitted
Refinancing Indebtedness shall not exceed the principal amount of such Original
Indebtedness; (b) such Permitted Refinancing Indebtedness shall not constitute
an obligation of any Subsidiary that shall not have been an obligor in respect
of such Original Indebtedness, (c) if such Original Indebtedness shall have
been subordinated to the Obligations, such Permitted Refinancing Indebtedness
shall also be subordinated to the Obligations on terms not less favorable in
any material respect to the Lenders; and (d) such Permitted Refinancing
Indebtedness shall not mature, and shall not be required to be repaid, prepaid,
redeemed, repurchased or defeased, whether on one or more fixed dates, upon the
occurrence of one or more events or at the option of any holder thereof
(except, in each case, upon the 

 

22

 

occurrence of an event of
default or a change in control or similar event) prior to the earlier of (i) the
maturity of such Original Indebtedness and (ii) the date six months after the
Maturity Date.

 

“Permitted
Subordinated Notes” means unsecured notes of the Company (a) the principal
of which is not by its terms required to be repaid, prepaid, redeemed,
repurchased or defeased, in whole or in part, at the option of any holder
thereof or otherwise, on any date prior to the date six months after the Maturity
Date (except (i) upon the occurrence of an event of default or a change in
control or similar event or (ii) pursuant to provisions requiring the Company
to prepay or redeem, or to offer to prepay or redeem, such notes with the
proceeds of asset sales or the incurrence of Indebtedness; provided,
that such provisions do not require any such prepayment, redemption or offer to
prepay or redeem if (among other reasons prepayment is not required) such
proceeds have been applied, inter  alia, to reduce the
Indebtedness and related Commitments under this Agreement), (b) that are not
Guaranteed by Walden University, Inc., and are not Guaranteed by any other
Subsidiary unless (i) such Subsidiary is a US Subsidiary that Guarantees the
Obligations pursuant to the US Guarantee and Collateral Agreement, (ii) the
Guarantee of such subordinated notes is unsecured and subordinated to the corresponding
Guarantee of the Obligations under the US Guarantee and Collateral Agreement on
terms no less favorable to the Lenders than those on which the obligations of
the Company in respect of such notes are subordinated to the Obligations of the
Company and (iii) such Guarantee provides for the release and termination
thereof, without action by any party, upon any release and termination of the
corresponding Guarantee of the Obligations, (c) that are fully subordinated to
the Obligations in the event of any bankruptcy, reorganization or insolvency
proceeding with respect to the Company, (d) that provide that no payments of
interest will be made during the continuance of any Default in the payment of
the principal of or interest on the Obligations, (e) that provide on customary
terms that payments of interest will be suspended for a period of at least 180
days during the continuance of non-payment Defaults upon notice given by the Facility
Agent on behalf of the Lenders, (f) the subordination provisions of which,
insofar as they relate to the Obligations, are otherwise reasonably determined
by the Company to be customary at the time of issuance for publicly offered
subordinated debt securities and (g) that do not contain any financial
maintenance covenants.

 

“Permitted
Unsecured Notes” means unsecured notes of the Company (a) the principal of
which is not by its terms required to be repaid, prepaid, redeemed, repurchased
or defeased, in whole or in part, at the option of any holder thereof or
otherwise, on any date prior to the date six months after the Maturity Date (except
(i) upon the occurrence of an event of default or a change in control or
similar event or (ii) pursuant to provisions requiring the Company to prepay or
redeem, or to offer to prepay or redeem, such notes with the proceeds of asset
sales or the incurrence of Indebtedness; provided, that such provisions
do not require any such prepayment, redemption or offer to prepay or redeem if (among
other reasons prepayment is not required) such proceeds have been applied, inter
alia, to reduce the Indebtedness and related Commitments under this
Agreement), (b) that are not Guaranteed by Walden University, Inc., and are not
Guaranteed by any other Subsidiary unless (i) such Subsidiary is a US Subsidiary
that 

 

23

 

Guarantees the Obligations
pursuant to the US Guarantee and Collateral Agreement, (ii) such Guarantee is
unsecured and (iii) such Guarantee provides for the release and termination
thereof, without action by any party, upon any release and termination of the
corresponding Guarantee of the Obligations and (c) that do not contain any
financial maintenance covenants.

 

“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 Borrower or any ERISA Affiliate is (or, if such plan were
terminated, would under Section 4069 of ERISA be deemed to be) an “employer”
as defined in Section 3(5) of ERISA.

 

“Pledged Walden Trademarks” has the meaning assigned to such
term in the Walden Collateral Agreement.

 

“Preferred
Stock” means with respect to any Person all Equity Interests of such Person
that have a preference in liquidation or a preference with respect to the
payment of dividends or distributions over any common Equity Interests of such
Person.

 

“Prime Rate”
means the rate of interest per annum publicly announced from time to time by
JPMCB, 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.

 

“Qualified
Preferred Stock” means Preferred Stock that is not by its terms required to
be redeemed or repurchased, at the option of any holder thereof, upon the
occurrence of any event or otherwise, on any date prior to the date six months
after the Maturity Date.

 

“Qualified
Title IV Sales Transaction” means any transfer by a Subsidiary of Title IV
Student Loans directly to one or more investors (and not through any conduit or
similar entity) for cash in a non-recourse, true sale transaction. The “amount”
of any Qualified Title IV Sales Transaction shall be deemed at any time to be
the uncollected amount of the Title IV Student Loans sold pursuant to such Qualified
Title IV Sales Transaction net of any such Title IV Student Loans that have
been written off as uncollectible.

 

“Quotation
Day” means (a) with respect to any currency (other than Sterling) for any
Interest Period, two Business Days prior to the first day of such Interest
Period and (b) with respect to Sterling for any Interest Period, the first day
of such Interest Period, in each case unless market practice differs in the
Relevant Interbank Market for any currency, in which case the Quotation Day for
such currency shall be determined by the Applicable Agent in accordance with
market practice in the Relevant 

 

24

 

Interbank Market (and if
quotations would normally be given by leading banks in the Relevant Interbank
Market on more than one day, the Quotation Day shall be the last of those
days).

 

“Reference
Banks” means, with respect to the LIBO Rate or the EURIBO Rate, the Facility
Agent or such other bank or financial institution as may be appointed as such
by the Facility Agent in consultation with the Company.

 

“Register”
has the meaning set forth in Section 11.04.

 

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

 

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

 

“Relevant
Interbank Market” means (a) with respect to any currency (other than
Euros), the London interbank market and (b) with respect to Euros, the European
interbank market.

 

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

 

“Responsible
Officer” means the chief executive officer, president, chief operating
officer, secretary or general counsel of the Company or any Financial Officer.

 

“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, cancelation or termination of
any Equity Interests in the Company or any Subsidiary or any option, warrant or
other right to acquire any such Equity Interests in the Company or any
Subsidiary.

 

“Revolving
Exposure” means any US Tranche Revolving Exposure or Spanish Tranche
Revolving Exposure.

 

“Revolving
Borrowing” means any US Tranche Revolving Borrowing or Spanish Tranche
Revolving Borrowing.

 

“Revolving
Loan” means any US Tranche Revolving Loan or Spanish Tranche Revolving Loan.

 

25

 

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

 

“Sale-Leaseback Transaction” means any
arrangement whereby the Company or a Subsidiary shall sell or transfer any
property, real or personal, used or useful in its business, whether now owned
or hereafter acquired, and, as part of such arrangement, rent or lease such
property or other property that it intends to use for substantially the same
purpose or purposes as the property sold or transferred.  The amount of any Sale-Leaseback Transaction
as of any date shall be deemed to be the amount of Attributable Indebtedness in
respect thereof as of such date.

 

“Screen Rate” means (a) in
respect of the LIBO Rate for any currency for any Interest Period, the British
Bankers Association Interest Settlement Rate for such currency and such
Interest Period as set forth on the applicable page of the Telerate
Service (and if such page is replaced or such service ceases to be
available, another page or service displaying the appropriate rate
designated by the Applicable Agent) and (b) in respect of the EURIBO Rate
for any Interest Period, the percentage per annum determined by the Banking
Federation of the European Union for such Interest Period as set forth on the
applicable page of the Telerate Service (and if such page is replaced
or such service ceases to be available, another page or service displaying
the appropriate rate designated by the Applicable Agent).

 

“SEC” means the Securities and
Exchange Commission.

 

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

 

“Seller Notes” means promissory notes
of Foreign Subsidiaries issued to the sellers of Subsidiaries acquired prior to
the Closing Date or in transactions on or after the Closing Date that
constitute Permitted Acquisitions.

 

“Spanish Obligations” means the due
and punctual payment by ICE of (i) the principal of and interest
(including interest accruing during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding) on the Loans made to it, when and as due, whether
at maturity, by acceleration, upon one or more dates set for prepayment or
otherwise, (ii) each payment required to be made by ICE under this
Agreement in respect of any Letter of Credit, when and as due, including
payments in respect of reimbursement of Spanish Tranche LC Disbursements,
interest thereon (including interest accruing during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding) and obligations to provide
cash collateral and (iii) all other monetary obligations of ICE under this
Agreement and each of the other Loan Documents, including obligations to pay
fees, expense reimbursement obligations and indemnification obligations,
whether primary, secondary, direct, contingent, fixed or otherwise (including
monetary obligations incurred during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether
allowed or allowable in such proceeding).

 

26

 

“Spanish Tranche” has the meaning set
forth in the definition of “Tranche”.

 

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

 

“Spanish Tranche Borrower” means (a) ICE
and (b) the Company.

 

“Spanish Tranche Commitment” means,
with respect to each Spanish Tranche Lender, the commitment of such Spanish
Tranche Lender to make Spanish Tranche Revolving Loans pursuant to Section 2.01(b) and
acquire participations in Spanish Tranche Letters of Credit pursuant to Section 2.05(d),
expressed as an amount representing the maximum aggregate amount of such
Spanish Tranche Lender’s Spanish Tranche Revolving Exposure hereunder, as such
commitment may be reduced or increased from time to time pursuant to Section 2.08
or assignments by or to such Spanish Tranche Lender pursuant to Section 11.04.  The initial amount of each Spanish Tranche
Lender’s Spanish Tranche Commitment is set forth on Schedule 2.01,
or in the Assignment and Assumption pursuant to which such Spanish Tranche
Lender shall have assumed its Spanish Tranche Commitment, as the case may
be.  The aggregate amount of Spanish
Tranche Commitments on the Closing Date is US$100,000,000.

 

“Spanish Tranche Effective Date” means
the first date on which the conditions specified in Section 4.02 are
satisfied (or waived in accordance with Section 11.02).

 

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

 

“Spanish Tranche LC Exposure” means,
at any time, the sum of (a) the aggregate of the US Dollar Equivalents of
the undrawn amounts of all outstanding Spanish Tranche Letters of Credit at
such time plus (b) the aggregate of the US Dollar Equivalents of the
amounts of all Spanish Tranche LC Disbursements that have not yet been
reimbursed by or on behalf of ICE at such time. 
The Spanish Tranche LC Exposure of any Spanish Tranche Lender at any
time shall be such Spanish Tranche Lender’s Spanish Tranche Percentage of the
total Spanish Tranche LC Exposure at such time.

 

“Spanish Tranche Lender” means a
Lender with a Spanish Tranche Commitment or a Spanish Tranche Revolving
Exposure.

 

“Spanish Tranche Lending Office”
means, with respect to any Spanish Tranche Lender, the office(s) of such Lender
(or an Affiliate of such Lender) specified as its “Spanish Tranche Lending
Office(s)” on Schedule 2.01 or, as to any Person that becomes a
Spanish Tranche Lender after the Closing Date, in the Assignment and Assumption
executed by such Person, or such other office(s) of such Lender (or an
Affiliate of such Lender) as such Lender may hereafter designate from time to
time as its “Spanish Tranche Lending Office(s)” by notice to the Company and
the Facility Agent.  

 

27

 

A Spanish Tranche Lender may designate different Spanish Tranche
Lending Offices for Loans to the Company and ICE.

 

“Spanish Tranche Letter of Credit”
means a letter of credit issued by the Issuing Bank for the account of ICE
pursuant to Section 2.05(a)(ii).

 

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

 

“Spanish Tranche Revolving Exposure”
means, with respect to any Spanish Tranche Lender at any time, the sum at such
time, without duplication, of (a) the US Dollar Equivalents of such
Spanish Tranche Lender’s outstanding Spanish Tranche Revolving Loans and (b) such
Lender’s Spanish Tranche LC Exposure.

 

“Spanish Tranche Revolving Loans”
means Loans made by a Spanish Tranche Lender pursuant to Section 2.01(b).  Each Spanish Tranche Revolving Loan
denominated in US Dollars shall be a LIBOR Loan or an ABR Loan.  Each Spanish Tranche Revolving Loan
denominated in an Alternative Currency (other than Euros) shall be a LIBOR
Loan.  Each Spanish Tranche Revolving
Loan denominated in Euros shall be a EURIBOR Loan.

 

“Spanish Tranche Percentage” means,
with respect to any Spanish Tranche Lender at any time, the percentage of the
aggregate Spanish Tranche Commitments represented by such Spanish Tranche
Lender’s Spanish Tranche Commitment at such time; provided, that if the
Spanish Tranche Commitments have terminated or expired, the Spanish Tranche
Percentages shall be determined on the basis of the Spanish Tranche Commitments
most recently in effect, giving effect to any assignments.

 

“Specified Obligations” means
Obligations consisting of the principal of and interest on Loans, reimbursement
obligations in respect of LC Disbursements (including interest accrued thereon)
and fees.

 

“Specified Time” means (a) with
respect to the LIBO Rate, 11:00 a.m., London time and (b) with
respect to the EURIBO Rate, 11:00 a.m., Brussels time.

 

“Statutory Reserve Rate” means 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 percentages (including any marginal, special, emergency or supplemental
reserves) expressed as a decimal established by the Board to which the Facility
Agent is subject, for LIBOR funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board).  Such reserve percentages shall include those
imposed pursuant to such Regulation D. 
LIBOR Loans shall be deemed to constitute eurocurrency funding and to be
subject to such reserve requirements without benefit of or credit for
proration, exemptions or offsets that may be available from time to time to any
Lender under such Regulation D or any comparable regulation.  The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in any reserve
percentage.

 

28

 

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

 

“Subsequent Borrowings” has the
meaning set forth in Section 2.08(e).

 

“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 direct or
indirect subsidiary of the Company.

 

“Subsidiary Credit Party” means any
Subsidiary (other than ICE) that is a party to any Loan Document.

 

“Swingline Exposure” means, at any
time, the aggregate principal amount of all Swingline Loans outstanding at such
time.  The Swingline Exposure of any US
Tranche Lender at any time shall be such US Tranche Lender’s US Tranche
Percentage of the aggregate 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 2.04.

 

“Synthetic Lease Obligation” means the
monetary obligation of a Person under (a) a so-called synthetic,
off-balance sheet or tax retention lease, or (b) an agreement for the use
or possession of property creating obligations that do not appear on the
balance sheet of such Person but which, upon the insolvency or bankruptcy of
such Person, would be characterized as the indebtedness of such Person (without
regard to accounting treatment).  The
amount of any Synthetic Lease Obligation as of any date shall be deemed to be
the amount of Attributable Indebtedness in respect thereof as of such date.

 

“TARGET” means the Trans-European
Automated Real Time Gross Settlement Express Transfer (TARGET) payment system.

 

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

 

“Title IV Student Loans” means student
loans made (and guaranteed by the US Department of Education or one or more
State guaranty agencies) pursuant to 

 

29

 

Title IV of the Higher
Education Act of 1965 (Pub. L. 89-329) or related accounts receivable or
interests therein.

 

“Total Indebtedness” means, as of any date
and without duplication, the sum of (a) the aggregate principal amount of
Indebtedness of the Company and the Subsidiaries outstanding as of such date,
in the amount that would be reflected on a balance sheet prepared as of such
date on a consolidated basis in accordance with GAAP, plus (b) the
aggregate principal amount of Indebtedness of the Borrower and the Subsidiaries
outstanding as of such date that is not required to be reflected on a balance
sheet in accordance with GAAP, determined on a consolidated basis; provided
that, for purposes of clause (b) above, the term “Indebtedness” shall not
include contingent obligations of the Borrower or any Subsidiary as an account
party in respect of any letter of credit or letter of guaranty unless such
letter of credit or letter of guaranty supports an obligation that constitutes
Indebtedness.

 

“Tranche” means a category of
Commitments and extensions of credit thereunder.  For purposes hereof, each of the following
shall comprise a separate Tranche: (a) the US Tranche Commitments, the US
Tranche Revolving Loans, US Tranche Letters of Credit and the Swingline Loans
(the “US Tranche”), and (b) the Spanish Tranche Commitments, the
Spanish Tranche Revolving Loans and the Spanish Tranche Letters of Credit (the “Spanish
Tranche”).

 

“Tranche Percentage” means, with
respect to any Lender holding any US Tranche Commitment or Loan or Spanish
Tranche Commitment or Loan, such Lender’s US Tranche Percentage or Spanish
Tranche Percentage, as the case may be.

 

“Transactions” means the execution,
delivery and performance by each Credit Party of the Loan Documents to which it
is to be a party, the satisfaction of the Guarantee and Collateral Requirement,
the borrowing of Loans, the use of the proceeds thereof and the issuance of
Letters of Credit.

 

“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, the Adjusted EURIBO Rate or the Alternate Base Rate.

 

“UDLA” means Universidad de las
Americas, a wholly owned subsidiary of the Company.

 

“UDLA Mortgages” means (a) the
mortgage dated as of November 30, 2000 between UDLA and Banco de Estado de
Chile and (b) the mortgage dated as of March 10, 2003 between UDLA
and Banco de Credit y Inversiones.

 

“UNAB” means Universidad Nacional
Andres Bello, a wholly owned subsidiary of the Company.

 

“Unreimbursed Amount” has the meaning
set forth in Section 2.05(e).

 

30

 

“US Dollar Equivalent” means, on any
date of determination, (a) with respect to any amount in US Dollars, such
amount and (b) with respect to any amount in any Alternative Currency, the
equivalent in US Dollars of such amount, determined by the Facility Agent
pursuant to Section 1.05 using the applicable Exchange Rate with respect
to such Alternative Currency at the time in effect under the provisions of such
Section.

 

“US Dollars” or “US$” means the
lawful currency of the United States of America.

 

“US Guarantee and Collateral Agreement”
means a Guarantee and Collateral Agreement substantially in the form of Exhibit E-1.

 

“US Material Subsidiary” means any
Material Subsidiary that is a US Subsidiary. 
As of the US Tranche Effective Date, the following US Subsidiaries are
US Material Subsidiaries: (i) The Canter Group of Companies, a California
corporation; (ii) Canter and Associates, Inc., a Delaware
corporation; (iii) Walden e-Learning, Inc., a Delaware corporation, (iv) Post-Secondary
Education Acquisition Corporation, a Delaware corporation, and (v) Walden
University, Inc., a Florida corporation.

 

“US Obligations” means (a) the
due and punctual payment by the Company of (i) the principal of and
interest (including interest accruing during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether
allowed or allowable in such proceeding) on the Loans, when and as due, whether
at maturity, by acceleration, upon one or more dates set for prepayment or
otherwise, (ii) each payment required to be made by the Company under this
Agreement in respect of any Letter of Credit, when and as due, including
payments in respect of reimbursement of US Tranche LC Disbursements, interest
thereon (including interest accruing during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether
allowed or allowable in such proceeding) and obligations to provide cash
collateral, and (iii) all other monetary obligations of the Company under
this Agreement and each of the other Loan Documents, including obligations to
pay fees, expense reimbursement obligations and indemnification obligations,
whether primary, secondary, direct, contingent, fixed or otherwise (including monetary
obligations incurred during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding), and (b) the due and punctual payment and
performance of all the obligations of each other Credit Party under or pursuant
to this Agreement and each of the other Loan Documents.

 

“US Subsidiary” means any Subsidiary
that is organized under the laws of the United States of America, any State
thereof or the District of Columbia.

 

“US Tranche” has the meaning set forth
in the definition of “Tranche”.

 

31

 

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

 

“US Tranche Commitment” means, with
respect to each US Tranche Lender, the commitment of such US Tranche Lender to
make US Tranche Revolving Loans pursuant to Section 2.01(a) and to
acquire participations in Swingline Loans and US Tranche Letters of Credit
hereunder, expressed as an amount representing the maximum aggregate amount of
such US Tranche Lender’s US Tranche Revolving Exposure hereunder, as such
commitment may be reduced or increased from time to time pursuant to Section 2.08
or assignments by or to such US Tranche Lender pursuant to Section 11.04.  The initial amount of each US Tranche Lender’s
US Tranche Commitment is set forth on Schedule 2.01, or in the
Assignment and Assumption pursuant to which such US Tranche Lender shall have
assumed its US Tranche Commitment, as the case may be.  The aggregate amount of US Tranche
Commitments on the Closing Date is US$150,000,000.

 

“US Tranche Effective Date” means the
first date on which the conditions specified in Section 4.01 are satisfied
(or waived in accordance with Section 11.02).

 

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

 

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

 

“US Tranche Lender” means a Lender
with a US Tranche Commitment or a US Tranche Revolving Exposure.

 

“US Tranche Lending Office” means,
with respect to any US Tranche Lender, the office of such Lender (or an
Affiliate of such Lender) specified as its “US Tranche Lending Office” on Schedule 2.01
or, as to any Person that becomes a US Tranche Lender after the Closing Date,
in the Assignment and Assumption executed by such Person, or such other office
of such Lender (or an Affiliate of such Lender) as such Lender may hereafter
designate from time to time as its “US Tranche Lending Office” by notice to the
Company and the Facility Agent.

 

“US Tranche Letter of Credit” means a
letter of credit issued by the Issuing Bank for the account of the Company
pursuant to Section 2.05(a)(i) and each Existing Letter of Credit.

 

“US Tranche Percentage” means, with
respect to any US Tranche Lender at any time, the percentage of the aggregate
US Tranche Commitments represented by such US Tranche Lender’s US Tranche
Commitment at such time; provided, that if the 

 

32

 

US Tranche Commitments have
terminated or expired, the US Tranche Percentages shall be determined on the
basis of the US Tranche Commitments most recently in effect, giving effect to
any assignments.

 

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

 

“US Tranche Revolving Exposure” means,
with respect to any US Tranche Lender at any time, the aggregate amount of (a) such
US Tranche Lender’s outstanding US Tranche Revolving Loans, (b) such US
Tranche Lender’s US Tranche LC Exposure and (c) such US Tranche Lender’s
Swingline Exposure.

 

“US Tranche Revolving Loans” means
Loans made by a US Tranche Lender pursuant to Section 2.01(a).  Each US Tranche Revolving Loan shall be a
LIBOR Loan or an ABR Loan.

 

“VAT” means value added tax or any
other similar Tax.

 

“Walden Collateral Agreement” means a
Collateral Agreement substantially in the form of Exhibit E-3.

 

“Wholly Owned Subsidiary” means any
Subsidiary all the Equity Interests in which (other than directors’ qualifying
shares) are owned, directly or indirectly, by the Company.

 

“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.

 

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 “US Tranche Revolving Loan”) or by Type (e.g.,
a “US Tranche LIBOR Loan”) or by Class and Type (e.g., a “US
Tranche LIBOR Revolving Loan”). 
Borrowings also may be classified and referred to by Class (e.g.,
a “US Tranche Revolving Borrowing”) or by Type (e.g., a “US Tranche
LIBOR Borrowing”) or by Class and Type (e.g., a “US Tranche LIBOR
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”.  Unless the context requires otherwise (a) any
definition of or reference to any agreement, instrument, other document or
statute herein shall be construed as referring to such agreement, instrument,
other document or statute as from time to time amended, supplemented or
otherwise modified (subject to any restrictions on such amendments, supplements
or modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such 

 

33

 

Person’s successors and assigns, (c) 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, (d) 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, (e) each capitalized term used but not defined in any Schedule to
this Agreement shall have the meaning assigned to such term in 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 Facility Agent that the
Company requests an amendment to any provision hereof to eliminate the effect
of any change occurring after the Closing Date in GAAP or in the application
thereof on the operation of such provision (or if the Facility 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 shall have been amended in accordance
herewith.

 

SECTION 1.05.
Currency Translation.  The
Facility Agent shall (A) determine the US Dollar Equivalent of any
Borrowing denominated in an Alternative Currency as of the date of the
commencement of the initial Interest Period therefor and as of the date of the
commencement of each subsequent Interest Period therefor, in each case using
the Exchange Rate for the applicable currency in relation to US Dollars in
effect on the date that is three Business Days prior to the date on which the
applicable Interest Period shall commence, and each such amount shall be the US
Dollar Equivalent of such Borrowing until the next required calculation thereof
pursuant to this paragraph and (B) notify the Company and the Lenders of
each calculation of the US Dollar Equivalent of each Borrowing.  The Facility Agent shall determine the Exchange
Rate in relation to US Dollars for each currency in which Letters of Credit may
be issued under the Spanish Tranche on the last Business Day of each calendar
quarter, and the Exchange Rates so determined shall be the Exchange Rates used
to determine the Spanish Tranche LC Exposure until the next required
determination of such Exchange Rates pursuant to this paragraph.

 

ARTICLE II

The Credits

 

SECTION 2.01.
Commitments.  (a) US Tranche
Commitments.  Subject to the terms
and conditions set forth herein, each US Tranche Lender agrees to make US
Tranche Revolving Loans denominated in US Dollars to the Company from time to
time during the US Tranche Availability Period in an aggregate principal amount
at any time 

 

34

 

outstanding that will not result in (i) the aggregate US Tranche
Revolving Exposures exceeding the aggregate US Tranche Commitments or (ii) the
US Tranche Revolving Exposure of any Lender exceeding its US Tranche
Commitment.  Within the foregoing limits
and subject to the terms and conditions set forth herein, the Company may
borrow, prepay and reborrow US Tranche Revolving Loans.

 

(b) 
Spanish Tranche Commitments. 
Subject to the terms and conditions set forth herein, each Spanish
Tranche Lender agrees to make Spanish Tranche Revolving Loans from time to time
during the Spanish Tranche Availability Period, (i) to ICE in Alternative
Currencies and (ii) to the Company in US Dollars, in an aggregate
principal amount at any time outstanding that will not result in (A) the
aggregate Spanish Tranche Revolving Exposures exceeding the aggregate Spanish
Tranche Commitments or (B) the Spanish Tranche Revolving Exposure of any
Lender exceeding its Spanish Tranche Commitment.  Within the foregoing limits and subject to
the terms and conditions set forth herein, the Spanish Tranche Borrowers may
borrow, repay and reborrow Spanish Tranche Revolving Loans.

 

SECTION 2.02.
Loans and Borrowings.   (a) Each US Tranche Revolving Loan shall be
made as part of a US Tranche Revolving Borrowing consisting of US Tranche
Revolving Loans of the same Type made by the US Tranche Lenders ratably in
accordance with their respective US Tranche Commitments.  Each Spanish Tranche Revolving Loan shall be
made as part of a Spanish Tranche Revolving Borrowing consisting of Spanish
Tranche Revolving Loans of the same Type and currency made by the Spanish
Tranche Lenders ratably in accordance with their respective Spanish Tranche
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.

 

(b) 
Subject to Section 2.13, (i) each Revolving Borrowing denominated in
US Dollars shall be comprised entirely of LIBOR Loans or ABR Loans, (ii) each
Revolving Borrowing denominated in an Alternative Currency (other than Euros)
shall be comprised entirely of LIBOR Loans and (iii) each Revolving
Borrowing denominated in Euros shall be comprised entirely of EURIBOR
Loans.  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; provided that any exercise of such option
shall not affect the obligation of the applicable Borrower to repay such Loan
in accordance with the terms of this Agreement.

 

(c) 
At the commencement of each Interest Period for any LIBOR Revolving Borrowing
or EURIBOR Revolving Borrowing, such Borrowing shall be in an aggregate amount
that is an integral multiple of the Borrowing Multiple and not less than the
Borrowing Minimum.  At the time that each
ABR Revolving Borrowing is made, such Borrowing shall be in an aggregate amount
that is an integral multiple of US$100,000 and not less than US$500,000; provided
that an ABR Revolving Borrowing under any Tranche may be in an aggregate amount
that is equal to the entire unused balance of the Commitments under such
Tranche or that is required to finance the 

 

35

 

reimbursement of a US Tranche LC Disbursement as
contemplated by Section 2.05(e). 
Each Swingline Loan shall be in an amount that is an integral multiple
of US$1,000,000 and not less than US$3,000,000. 
Borrowings of more than one Type may be outstanding at the same time; provided
that there shall not at any time be more than a total of (i) eight US
Tranche LIBOR Revolving Borrowings outstanding or (ii) five Spanish
Tranche 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 Borrowings.  To
request a Borrowing, the applicable Borrower shall notify the Applicable Agent
of such request by telecopy of a written Borrowing Request in the form of Exhibit A
or any other form approved by the Applicable Agent and signed by a Responsible
Officer of the Company (or, in the case of the Facility Agent, by telephone
confirmed promptly by hand delivery or telecopy to the Facility Agent of a
written Borrowing Request in the form of Exhibit A or any other
form approved by the Facility Agent and signed by a Responsible Officer of the
Company) (a) in the case of a LIBOR Borrowing denominated in US Dollars,
not later than 11:00 a.m., Local Time, three Business Days before the date
of the proposed Borrowing, (b) in the case of a LIBOR Borrowing
denominated in an Alternative Currency or a EURIBOR Borrowing, not later than
11:00 a.m., Local Time, four Business Days before the date of the proposed
Borrowing and (c) in the case of an ABR Borrowing, not later than 11:00 a.m.,
Local Time, one Business Day prior to the date of the proposed Borrowing.  Each such telephonic and written Borrowing
Request shall specify the following information in compliance with Section 2.02:

 

(i) the Borrower requesting such
Borrowing;

 

(ii) whether the requested Borrowing is
to be a US Tranche Revolving Borrowing or a Spanish Tranche Revolving
Borrowing;

 

(iii) the currency and the aggregate
amount of the requested Borrowing;

 

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

 

(v) the Type of such Borrowing;

 

(vi) in the case of a LIBOR Borrowing or
a EURIBOR Borrowing, the initial Interest Period to be applicable thereto,
which shall be a period contemplated by the definition of the term “Interest
Period”; and

 

(vii) the Applicable Funding Account.

 

If no currency is specified by ICE with respect to any requested LIBOR
Borrowing, it shall be deemed to have selected Euros.  If no election as to the Type of a Borrowing
is specified, then the requested Borrowing shall be (A) in the case of a
Borrowing denominated in US Dollars, an ABR Borrowing, (B) in the case of
Borrowing 

 

36

 

denominated in an Alternative Currency (other than Euros), a LIBOR
Borrowing and (C) in the case of a Borrowing denominated in Euros, a
EURIBOR Borrowing.  If no Interest Period
is specified with respect to any requested LIBOR Borrowing or EURIBOR
Borrowing, then the applicable 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 Applicable Agent shall advise each Lender that will make a
Loan as part of the requested Borrowing 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.
Swingline Loans.  (a) Subject to
the terms and conditions set forth herein, the Swingline Lender agrees to make
Swingline Loans denominated in US Dollars to the Company, from time to time
during the US Tranche 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 US$10,000,000, (ii) the
aggregate amount of the US Tranche Revolving Exposures exceeding the aggregate
amount of the US Tranche Commitments or (iii) the US Tranche Revolving
Exposure of any Lender exceeding its US Tranche 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 Facility Agent of
such request by telephone (confirmed by telecopy signed by a Responsible
Officer of the Company), not later than 12:00 noon, New York City 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 Facility 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 Applicable
Funding Account (or, in the case of a Swingline Loan made to finance the
reimbursement of an US Tranche LC Disbursement as provided in Section 2.05(e),
by remittance to the Issuing Bank) by 3:00 p.m., New York City time,
on the requested date of such Swingline Loan.

 

(c) 
The Swingline Lender may by written notice given to the Facility Agent not
later than 10:00 a.m., New York City time, on any Business Day
require the US Tranche Lenders to acquire participations on such Business Day
in all or a portion of the Swingline Loans outstanding.  Such notice shall specify the aggregate
amount of Swingline Loans in which the US Tranche Lenders will participate.  Promptly upon receipt of such notice, the
Facility Agent will give notice thereof to each US Tranche Lender, specifying
in such notice such US Tranche Lender’s US Tranche Percentage of such Swingline
Loan or Loans.  Each US Tranche Lender
hereby absolutely and unconditionally agrees, upon receipt of notice as
provided above, to pay to the Facility Agent, for the account of the Swingline
Lender, such Lender’s US Tranche Percentage of such Swingline Loan or
Loans.  Each US Tranche 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, 

 

37

 

including the occurrence and continuance of a
Default or reduction or termination of the US Tranche Commitments, and that
each such payment shall be made without any offset, abatement, withholding or
reduction whatsoever.  Each US Tranche
Lender shall comply with its obligation under this paragraph by wire transfer
of immediately available funds, in the same manner as provided in Section 2.06
with respect to Loans made by such US Tranche Lender (and Section 2.06
shall apply, mutatis  mutandis, to the payment obligations of the
US Tranche Lenders), and the Facility Agent shall promptly pay to the Swingline
Lender the amounts so received by it from the US Tranche Lenders.  The Facility 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 Facility 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 Facility Agent; any
such amounts received by the Facility Agent shall be promptly remitted by the
Facility Agent to the US Tranche 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 Facility Agent, as applicable, if and to the
extent such payment is required to be refunded to a Credit Party 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 2.05.
Letters of Credit.  (a) General.  Subject to the terms and conditions set forth
herein, (i) the Company may request the issuance of US Tranche Letters of
Credit denominated in US Dollars for its own account (or the amendment, renewal
or extension of outstanding US Tranche Letters of Credit) at any time and from
time to time during the US Tranche Availability Period and (ii) ICE may
request the issuance of Spanish Tranche Letters of Credit denominated in Euro,
Sterling or any Alternative Currency in which the Issuing Bank shall have
agreed to issue Spanish Tranche Letters of Credit for its own account (or the
amendment, renewal or extension of outstanding Spanish Tranche Letters of
Credit) at any time and from time to time during the Spanish Tranche
Availability Period, in each case, in a form reasonably acceptable to the
Facility Agent and the Issuing Bank.  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 a Borrower to, or entered into by a
Borrower with, the Issuing Bank relating to any Letter of Credit, the terms and
conditions of this Agreement shall control. 
From and after the US Tranche Effective Date, each Existing Letter of
Credit, as set forth in Schedule 2.05, shall be deemed to be a US
Tranche Letter of Credit for all purposes hereof and shall be deemed to have
been issued hereunder on the US Tranche Effective Date.  Any Lender that issued an Existing Letter of
Credit shall have the rights of an Issuing Bank as to such Letter of Credit for
purposes of this Section 2.05.

 

(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 applicable Borrower shall hand deliver 

 

38

 

or telecopy (or transmit by electronic
communication, if arrangements for doing so have been approved by the Issuing
Bank) to the Issuing Bank and the Facility Agent (reasonably in advance of the
requested date of issuance, amendment, renewal or extension, and in any event
not fewer than five Business Days in advance of the issuance, amendment,
renewal or extension of any Spanish Tranche Letter of Credit unless the Issuing
Bank shall agree to a shorter period) a notice signed by a Responsible Officer
of the Company 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 currency in which such Letter of Credit is to be denominated (in
the case of a Spanish Tranche Letter of Credit), the name and address of the
beneficiary thereof and such other information as shall be necessary to enable
the Issuing Bank to prepare, amend, renew or extend such Letter of Credit.  If requested by the Issuing Bank, the
applicable Borrower also shall submit a letter of credit application on the
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 applicable Borrower shall be
deemed to represent and warrant that), after giving effect to such issuance,
amendment, renewal or extension (i) in the case of a US Tranche Letter of
Credit, (A) the sum of the US Tranche LC Exposures and the Spanish Tranche
LC Exposures shall not exceed US$35,000,000, (B) the aggregate amount of
the US Tranche Revolving Exposures shall not exceed the aggregate amount of the
US Tranche Commitments and (C) the US Tranche Revolving Exposure of each
Lender shall not exceed such Lender’s US Tranche Commitment and (ii) in
the case of a Spanish Tranche Letter of Credit, (A) the Spanish Tranche LC
Exposure shall not exceed US$17,500,000, (B) the sum of the Spanish
Tranche LC Exposures and the US Tranche LC Exposures shall not exceed
US$35,000,000, (C) the aggregate amount of the Spanish Tranche Revolving
Exposures shall not exceed the aggregate amount of the Spanish Tranche
Commitments and (D) the Spanish Tranche Revolving Exposure of each Lender
shall not exceed such Lender’s Spanish Tranche Commitment.

 

(c) 
Expiration Date.  Each Letter of
Credit shall expire at or prior to the close of business on the earlier of (i) the
date one year 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 Business Days prior to the
Maturity Date; provided that at the request of a Borrower any Letter of
Credit may contain customary “evergreen” provisions pursuant to which such
Letter of Credit will, in the absence of a notice given by the Issuing Bank, be
automatically renewed (but in no event beyond the date that is five Business
Days prior to the Maturity Date) for successive one-year periods.

 

(d) 
Participations.  By the issuance
of a US Tranche Letter of Credit or a Spanish Tranche Letter of Credit (or an
amendment to any such Letter of Credit increasing the amount thereof) and
without any further action on the part of the Issuing Bank or the applicable
Lenders, the Issuing Bank hereby grants to each US Tranche Lender or Spanish
Tranche Lender, respectively, and each such Lender hereby acquires 

 

39

 

from the Issuing Bank, a participation in such
Letter of Credit equal to such Lender’s applicable Tranche 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 Facility Agent, for the account of the Issuing Bank, such Lender’s
applicable Tranche Percentage of each LC Disbursement made by the Issuing Bank
under such Tranche and not reimbursed by the applicable Borrower on the date
due as provided in paragraph (e) of this Section, or of any reimbursement
payment required to be refunded under such Tranche to the applicable Borrower
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.  On the US Tranche Effective
Date and without any further action by any party hereto, each Issuing Bank that
has issued an Existing Letter of Credit shall be deemed to have granted to each
US Tranche Lender, and each US Tranche Lender shall be deemed to have acquired
from such Issuing Bank, a participation in each such Existing Letter of Credit
in accordance with the foregoing provisions of this paragraph.

 

(e) 
Reimbursement.  If the Issuing
Bank shall make any LC Disbursement in respect of a Letter of Credit, the
applicable Borrower shall reimburse such LC Disbursement by paying to the
Facility Agent an amount equal to such LC Disbursement not later than 12:00
noon, New York City time, on the Business Day next following the Business
Day on which such Borrower receives such notice; provided that, if such
LC Disbursement is a US Tranche LC Disbursement, the applicable Borrower may,
subject to the conditions to borrowing set forth herein, request in accordance
with Section 2.03 or 2.04 that such payment be financed with a ABR
Revolving Borrowing or Swingline Loan in an equivalent amount and, to the
extent so financed, such Borrower’s obligation to make such payment shall be
discharged and replaced by the resulting ABR Revolving Borrowing or Swingline
Loan.  If the applicable Borrower fails
to make such payment when due, the Facility Agent shall notify each applicable
Lender of such LC Disbursement, the payment then required to be made to the
Issuing Bank in respect thereof (the “Unreimbursed Amount”) and such
Lender’s applicable Tranche Percentage thereof. 
Promptly following receipt of such notice, each applicable Lender shall
pay to the Facility Agent its applicable Tranche Percentage of the Unreimbursed
Amount, in the same manner as provided in Section 2.06 with respect to
Loans made by such Lender (and Section 2.06 shall apply, mutatis  mutandis,
to the payment obligations of the Lenders), and the Facility Agent shall
promptly pay to the Issuing Bank the amounts so received by it from the
applicable Lenders.  Promptly following
receipt by the Facility Agent of any payment from a Borrower pursuant to this
paragraph, the Facility Agent shall distribute such payment to the Issuing Bank
or, to the extent that Lenders have made payments pursuant to this paragraph to
reimburse the Issuing Bank, then to such Lenders and the Issuing Bank as their
interests may appear.  Any payment made
by a Lender pursuant to this paragraph to reimburse the Issuing Bank for any LC
Disbursement (other than the funding of ABR Revolving Loans or a Swingline Loan
as contemplated above) 

 

40

 

shall not constitute a Loan and shall not relieve
the applicable Borrower of its obligation to reimburse such LC Disbursement.

 

(f) 
Obligations Absolute.  The
Borrowers’ obligations 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,
this Agreement or any other Loan Document, or any term or provision therein or
herein, (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 the Issuing Bank under a Letter of Credit against presentation of a draft or
other document that does not comply with the terms of such Letter of Credit 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
applicable Borrower’s obligations hereunder. 
None of the Facility Agent, the Lenders or the Issuing Bank, or 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 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 Issuing Bank; provided that the foregoing shall not be construed to
excuse the Issuing Bank from liability to the applicable Borrower to the extent
of any direct damages (as opposed to consequential damages, claims in respect
of which are hereby waived by the Borrowers to the extent permitted by
applicable law) suffered by such Borrower that are caused by the 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 wilful misconduct on the part of the Issuing
Bank (as finally determined by a court of competent jurisdiction), the 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, the 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.  The
Issuing Bank shall, promptly following its receipt thereof, examine all
documents purporting to represent a demand for payment under a Letter of
Credit.  The Issuing Bank shall promptly
notify the Facility Agent and the applicable Borrower by telephone (confirmed
by telecopy) of such demand for payment and whether the 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 

 

41

 

relieve the applicable Borrower of its obligation
to reimburse the Issuing Bank and the Lenders with respect to any such LC
Disbursement.

 

(h) 
Interim Interest.  If the Issuing
Bank shall make any LC Disbursement, then, unless the applicable Borrower shall
reimburse such LC Disbursement in full, by 12:00 noon, New York City time, 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 applicable Borrower reimburses such LC
Disbursement, at (i) in the case of a US Tranche Letter of Credit, the
rate per annum then applicable to ABR Revolving Loans and (ii) in the case
of a Spanish Tranche Letter of Credit, a rate per annum reasonably determined
by the applicable Issuing Bank (which determination will be conclusive absent
manifest error) to be its cost of funds plus the Applicable Rate used to
determine interest applicable to LIBOR Loans; provided that, if the
applicable Borrower fails to reimburse such LC Disbursement when due pursuant
to paragraph (e) of this Section, then Section 2.12(d) shall
apply.  Interest accrued pursuant to this
paragraph shall be for the account of the 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 the Issuing Bank shall be for the account of
such Lender to the extent of such payment.

 

(i) 
Replacement of the Issuing Bank. 
The Issuing Bank may be replaced at any time by written agreement among
the Company, the Facility Agent, the replaced Issuing Bank and the successor
Issuing Bank.  The Facility Agent shall
notify the Lenders of any such replacement of the 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 2.11(b).  From and after the effective date of any such
replacement, (i) the successor Issuing Bank shall have all the rights and
obligations of the 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 Agreement with respect to Letters of Credit issued by it prior to
such replacement (including the right to receive fees under Section 2.11(b)),
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
Borrowers receive notice from the Facility Agent or the Required Lenders (or,
if the maturity of the Loans has been accelerated, Lenders with LC Exposures
representing more than 50% of the aggregate amount of LC Exposure) demanding
the deposit of cash collateral pursuant to this paragraph, the Borrowers shall
deposit (“Cash Collateralize”) in an account with the Facility Agent, in
the name of the Facility Agent and for the benefit of the applicable Lenders
and the Issuing Bank, an amount in cash equal to the sum of the US Tranche LC
Exposure and 105% of the Spanish Tranche LC Exposure as of such date plus any
accrued and unpaid interest thereon; provided that the obligation to
Cash Collateralize shall become effective 

 

42

 

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 a Borrower described in
clause (h) or (i) of Article 7.  Amounts payable under the preceding sentence
shall be payable in the currency of each applicable Letter of Credit and LC
Disbursement.  Each such deposit shall be
held by the Facility Agent as collateral for the payment and performance of the
obligations of the Borrowers under this Agreement.  The Facility 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 Facility Agent and at the applicable Borrower’s
risk and expense, such deposits shall not bear interest.  Interest or profits, if any, on such
investments shall accumulate in such account. 
Monies in such account shall be applied by the Facility Agent to
reimburse the Issuing Bank for LC Disbursements with respect to Letters of
Credit issued for the account of the applicable Borrower 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 applicable Borrower for
the LC Exposure at such time or, if the maturity of the Loans has been
accelerated (but subject to the consent of US Tranche Lenders or Spanish Tranche
Lenders, as the case may be, with US Tranche LC Exposures or Spanish Tranche LC
Exposures representing more than 50% of the aggregate amount of US Tranche LC
Exposure or Spanish Tranche LC Exposure), be applied to satisfy other
obligations of such Borrower under this Agreement.  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 Business Days after all Events of Default
have been cured or waived.

 

SECTION 2.06.
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 in the applicable
currency by 12:00 noon, Local Time, to the account of the Applicable Agent most
recently designated by it for such purpose by notice to the Lenders; provided
that Swingline Loans shall be made as provided in Section 2.04.  The Applicable Agent will make such Loans
available to the applicable Borrower by promptly crediting the amounts so
received, in like funds, to the Applicable Funding Account of such Borrower; provided
that ABR Revolving Loans or Swingline Loans made to finance the reimbursement of
an LC Disbursement as provided in Section 2.05(e) shall be remitted
by the Facility Agent to the Issuing Bank.

 

(b) 
Unless the Applicable 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 Applicable Agent such Lender’s share of such Borrowing, the Applicable
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 applicable Borrower a corresponding
amount.  In such event, if a Lender has
not in fact made its share of the applicable Borrowing available to the
Applicable Agent, then the applicable Lender and such Borrower severally agree
to pay to the Applicable 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 

 

43

 

the date of payment to the Applicable Agent, at (i) in
the case of such Lender, the rate reasonably determined by the Applicable Agent
to be the cost to it of funding such amount or (ii) in the case of such
Borrower, the interest rate applicable to the subject Loan.

 

SECTION 2.07.
Interest Elections.  (a) Each
Revolving Borrowing initially shall be of the Type specified in the applicable
Borrowing Request and, in the case of a LIBOR Borrowing or a EURIBOR Borrowing,
shall have an initial Interest Period as specified in such Borrowing
Request.  Thereafter, the applicable
Borrower may elect to convert such Borrowing to a different Type or to continue
such Borrowing and, in the case of a LIBOR Borrowing or a EURIBOR Borrowing,
may elect Interest Periods therefor, all as provided in this Section.  A Borrower may elect different options with
respect to different portions of an affected Revolving 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 Revolving 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 shall notify the
Applicable Agent of such election by telecopy (or, in the case of the Facility
Agent, by telephone) 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 Interest
Election Request shall be irrevocable and, if telephonic, shall be confirmed
promptly by hand delivery or telecopy to the Facility Agent of a written
Interest Election Request in a form approved by the Facility Agent and signed
by a Responsible Officer of the Company, on behalf of the applicable
Borrower.  Notwithstanding any other
provision of this Section, the Borrower shall not be permitted to (i) change
the currency of any Borrowing, (ii) elect an Interest Period for LIBOR
Loans or EURIBOR Loans that does not comply with Section 2.02(d) or (iii) convert
any Borrowing to a Borrowing of a Type not available to such Borrower under the
Class of Commitments pursuant to which such Borrowing was made.

 

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

 

(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) the Type of the resulting
Borrowing; and

 

44

 

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

 

If any such Interest Election Request requests a LIBOR Borrowing or a
EURIBOR Borrowing but does not specify an Interest Period, then the 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 Applicable
Agent shall advise each Lender holding a Loan to which such request relates of
the details thereof and of such Lender’s portion of each resulting Borrowing.

 

(e) 
If the applicable Borrower fails to deliver a timely Interest Election Request
with respect to a LIBOR Borrowing or EURIBOR 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, such Borrowing shall (i) in
the case of a LIBOR Borrowing denominated in US Dollars, be converted to an ABR
Borrowing, (ii) in the case of any other LIBOR Borrowing or a EURIBOR
Borrowing, become due and payable on the last day of such Interest Period.  Notwithstanding any contrary provision
hereof, if an Event of Default has occurred and is continuing and the Facility
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 US Dollars may be converted to or continued as a LIBOR
Borrowing and (ii) unless repaid, each LIBOR Revolving Borrowing
denominated in US Dollars shall be converted to an ABR Borrowing at the end of
the Interest Period applicable thereto.

 

SECTION 2.08.
Termination, Reduction and Increase 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 of any Class; provided that (i) each reduction of the
Commitments of any Class shall be in an amount that is an integral
multiple of the Borrowing Multiple and not less than the Borrowing Minimum, in
each case for Borrowings denominated in US Dollars, (ii) the Company shall
not terminate or reduce the US Tranche Commitments if, after giving effect to
any concurrent prepayment of the US Tranche Revolving Loans or Swingline Loans
in accordance with Section 2.10, the aggregate amount of US Revolving
Exposures would exceed the aggregate amount of US Tranche Commitments, and (iii) the
Company shall not terminate or reduce the Spanish Tranche Commitments if, after
giving effect to any concurrent prepayment of the Spanish Tranche Revolving
Loans in accordance with Section 2.10, the aggregate amount of Spanish
Tranche Exposures would exceed the aggregate amount of Spanish Tranche
Commitments.

 

(c) 
The Company shall notify the Facility Agent of any election to terminate or
reduce the Commitments under any Class 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 

 

45

 

receipt of any such notice, the Facility Agent
shall advise the London Agent and the applicable 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 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 Facility Agent on
or prior to the specified effective date) if such condition is not
satisfied.  Any termination or reduction
of the Commitments under any Tranche shall be permanent.  Each reduction of the Commitments under any
Tranche shall be made ratably among the applicable Lenders in accordance with
their Commitments under such Tranche.

 

(d) 
The Company may at any time and from time to time, by written notice to the
Facility Agent (which shall promptly deliver a copy to each of the Lenders),
request that the aggregate US Tranche Commitments and/or the aggregate Spanish
Tranche Commitments be increased by an amount not greater than US$100,000,000
in the aggregate for all such increases during the term of this Agreement and
not less than US$25,000,000 (or any portion of such US$100,000,000 aggregate
amount remaining unused) for any such increase. 
Such notice shall set forth the amount of the requested increase in the
applicable Commitments and the date on which such increase is requested to
become effective (which shall be not less than 45 days or more than 90
days after the date of such notice), and shall offer each US Tranche Lender or
Spanish Tranche Lender, as the case may be, the opportunity to increase its
applicable Commitment by its US Tranche Percentage or Spanish Tranche
Percentage, as the case may be, of the proposed increased amount.  Each US Tranche Lender or Spanish Tranche
Lender shall, by notice to the Company and the Facility Agent given not more
than 20 days after the date of the Company’s notice, either agree to
increase its applicable Commitment by all or a portion of the offered amount
(each Lender so agreeing being called an “Increasing Lender”) or decline
to increase its Commitment (and any Lender that does not deliver such a notice
within such period of 20 days shall be deemed to have declined to increase
its Commitment) (each Lender so declining or deemed to have declined being
called a “Non-Increasing Lender”). 
No Lender shall have any obligation hereunder to become an Increasing
Lender and any election to do so shall be in the sole discretion of each
Lender.  In the event that, on the 20th
day after the Company shall have delivered a notice pursuant to the first
sentence of this paragraph, the applicable Lenders shall have agreed pursuant
to the preceding sentence to increase their applicable Commitments by an
aggregate amount less than the total increase requested by the Company, the
Company may arrange for one or more Lenders or other financial institutions
(any such Lender or other financial institution referred to in this
paragraph (a) being called an “Augmenting Lender”) to extend
Commitments of the applicable Class or increase their existing applicable
Commitments in an aggregate amount equal to the unsubscribed amount; provided
that each Augmenting Lender, if not already a Lender hereunder, shall be
subject to the approval of the Facility Agent (which approval shall not be
unreasonably withheld) and each Augmenting Lender shall execute all such
documentation as the Facility Agent shall specify to evidence its Commitment and
its status as a Lender hereunder. 
Increases and new Commitments created pursuant to this paragraph shall
become effective on the date specified in the notice delivered by the Borrower
pursuant to the first sentence of this paragraph.  Notwithstanding the foregoing, no increase in
the 

 

46

 

Commitments of either Class shall become
effective under this paragraph unless, (i) on the date of such increase,
the conditions set forth in paragraphs (a) and (b) of Section 4.03
shall be satisfied and the Facility Agent shall have received a certificate to
that effect dated such date and executed by a Financial Officer of the
Borrower, and (ii) the Facility Agent shall have received documents
consistent with those delivered under clauses (c), (d) and (e) of
Section 4.01 as to the corporate power and authority of the applicable
Borrower to borrow hereunder and as to the enforceability of this Agreement
after giving effect to such increase.

 

(e) 
On the effective date (the “Increase Effective Date”) of any increase in
the Commitments of either Class pursuant to paragraph (d) above (a “Commitment
Increase”), (i) the aggregate principal amount of the Revolving Loans
of such Class outstanding (the “Initial Loans”) immediately prior
to the Commitment Increase on the Increase Effective Date shall be deemed to be
paid, (ii) each Increasing Lender and each Augmenting Lender that shall
have been a US Tranche Lender or Spanish Tranche Lender, as the case may be,
prior to the Commitment Increase shall pay to the Facility Agent in same day
funds an amount equal to the difference between (A) the product of (1) such
Lender’s applicable Tranche Percentage (calculated after giving effect to the
Commitment Increase) multiplied by (2) the amount of the Subsequent
Borrowings (as hereinafter defined) and (B) the product of (1) such
Lender’s applicable Tranche Percentage (calculated without giving effect to the
Commitment Increase) multiplied by (2) the amount of the Initial Loans, (iii) each
Augmenting Lender that shall not have been a US Tranche Lender or Spanish
Tranche Lender, as the case may be, prior to the Commitment Increase shall pay
to Facility Agent in same day funds an amount equal to the product of (1) such
Augmenting Lender’s applicable Tranche Percentage (calculated after giving
effect to the Commitment Increase) multiplied by (2) the amount of the
Subsequent Borrowings, (iv) after the Facility Agent receives the funds
specified in clauses (ii) and (iii) above, the Facility Agent shall
pay to each Non-Increasing Lender the portion of such funds that is equal to
the difference between (A) the product of (1) such Non-Increasing
Lender’s applicable Tranche Percentage (calculated without giving effect to the
Commitment Increase) multiplied by (2) the amount of the Initial Loans,
and (B) the product of (1) such Non-Increasing Lender’s applicable
Tranche Percentage (calculated after giving effect to the Commitment Increase)
multiplied by (2) the amount of the Subsequent Borrowings, (v) after
the effectiveness of the Commitment Increase, the applicable Borrower shall be
deemed to have made new Borrowings (the “Subsequent Borrowings”) in an
aggregate principal amount equal to the aggregate principal amount of the
Initial Loans and of the Types and for the Interest Periods specified in a
Borrowing Request delivered to the Facility Agent in accordance with Section 2.03,
(vi) each Non-Increasing Lender, each Increasing Lender and each
Augmenting Lender shall be deemed to hold its applicable Tranche Percentage of
each Subsequent Borrowing (calculated after giving effect to the Commitment
Increase) and (vii) the Borrower shall pay each Increasing Lender and each
Non-Increasing Lender any and all accrued but unpaid interest on the Initial
Loans.  The deemed payments made pursuant
to clause (i) above shall be subject to compensation by the applicable
Borrower pursuant to the provisions of Section 2.15 if the Increase
Effective Date occurs other than on the last day of the Interest Period
relating thereto.

 

47

 

SECTION 2.09.
Repayment of Loans; Evidence of Debt.  (a) Each Borrower hereby unconditionally
promises to pay to the Applicable Agent for the account of each Lender the
then unpaid principal amount of each Revolving Loan of such Borrower on the
Maturity Date.  The Company hereby
unconditionally promises to pay 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 three Business Days after such Swingline
Loan is made; provided that on each date that a Revolving Borrowing
denominated in US Dollars is made to the Company, the Company shall repay all
outstanding Swingline Loans.

 

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

 

(c) 
The Facility Agent shall maintain accounts in which it shall record (i) the
amount of each Loan made hereunder, the Class 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 any
Agent hereunder for the account of the Lenders and each Lender’s share
thereof.  The London Agent shall furnish
to the Facility Agent, promptly after the making of any Loan or Borrowing with
respect to which it is the Applicable Agent or the receipt of any payment of
principal or interest with respect to any such Loan or Borrowing, information
with respect thereto that will enable the Facility Agent to maintain the
accounts referred to in the preceding sentence.

 

(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 Facility 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) 
For the purposes of article 572 of the Spanish Civil Procedure Law (Ley de Enjuiciamiento Civil), all parties
to this Agreement expressly agree that the exact amount due at any time from
ICE to any Lender will be the amount specified in a certificate issued by the
Facility Agent as representative of such Lender or by such Lender with respect
to the amount owed to such Lender and reflecting the balance of the accounts
referred to in paragraphs (c) and (d) above.  For purposes of Spanish law, the amount so
specified will be considered as liquid, due and payable, provided that
the relevant certificate has been formalized in a public deed (documento fehaciente) authorized by a
Spanish notary public who will certify that the calculation of the balance has
been made consistently with the procedure agreed by the parties to this
Agreement.

 

48

 

(f) 
As a consequence of paragraphs (b) through (e) above, enforcement
against ICE may be initiated in Spain if all or any portion of the Spanish
Obligations has been declared immediately due and payable pursuant to this
Agreement, by presenting:

 

(i) the first authorized copy of the
notarized deed formalizing this Agreement issued by a Spanish notary public or
an original of this Agreement executed as a notarial deed attested to by a
Spanish notary public;

 

(ii) the public deed which incorporates
the certificate issued by the Facility Agent or by any Lender referred to in
paragraph (e) above, setting forth the total amount owed by ICE and
confirming that the computation of such amount has been made consistent with
the procedure agreed upon by the parties in this Section;

 

(iii) an excerpt of the credits and
debits which appear in the relevant accounts referred to in paragraphs (c) and
(d) above; and

 

(iv) a document evidencing that ICE has
been served notice of the amount due and payable.

 

(g) 
Any Lender may request that US Tranche Revolving Loans made by it be evidenced
by a promissory note.  In such event, the
Company 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 a form reasonably acceptable to the
Facility Agent.  Thereafter, the Loans
evidenced by such promissory note and interest thereon shall at all times
(including after assignment pursuant to Section 11.04) 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 2.10.
Prepayment of Loans.  (a) Each
Borrower shall have the right at any time and from time to time to prepay any
Borrowing of such Borrower in whole or in part, subject to prior notice in
accordance with paragraph (e) of this Section.

 

(b) 
If the aggregate Exposures under the Spanish Tranche shall exceed the aggregate
Commitments under such Tranche, then on the last day of any Interest Period for
any LIBOR Revolving Borrowing or EURIBOR Revolving Borrowing under such
Tranche, the applicable Borrower or Borrowers shall prepay Loans under such
Tranche in an aggregate amount equal to the lesser of (A) the amount
necessary to eliminate such excess (after giving effect to any other prepayment
of Loans on such day) and (B) the amount of such LIBOR Revolving Borrowing
or EURIBOR Revolving Borrowing.  If on
any date the aggregate amount of the Exposures under the Spanish Tranche shall
exceed 105% of the aggregate Commitments under such Tranche, then the
applicable Borrower or Borrowers shall, not later than the third Business Day
following such date, prepay one or more Borrowings under such Tranche in an
aggregate principal amount sufficient to eliminate such excess.

 

49

 

(c) 
The Borrowers will prepay the Loans with proceeds of assets sold or
Indebtedness incurred by the Company and the Subsidiaries and make
corresponding reductions of  the
Commitments at such times and in such amounts, if any, as shall be necessary in
order that the Company shall not be required under the terms of any indenture
or other agreement or instrument governing any Permitted Subordinated Notes or
Permitted Unsecured Notes to prepay or redeem, or offer to prepay or redeem,
such Permitted Subordinated Notes or Permitted Unsecured Notes with such
proceeds.  It is agreed that nothing in
this paragraph shall prohibit the reinvestment of proceeds of assets sold or
Indebtedness incurred in assets used or useful in the business of the Company
and the Subsidiaries if such reinvestment will avoid any requirement that the
Company prepay or redeem, or offer to prepay or redeem, any Permitted
Subordinated Notes or Permitted Unsecured Notes.

 

(d) 
Prior to any optional or mandatory prepayment of Borrowings hereunder, the
applicable Borrower shall select the Borrowing or Borrowings to be prepaid and
shall specify such selection in the notice of such prepayment pursuant to
paragraph (e) of this Section.

 

(e) 
The applicable Borrower shall notify the Applicable Agent (and, in the case of
prepayment of a Swingline Loan, the Swingline Lender) by a telecopy notice
signed by a Financial Officer of the Company of any prepayment of a Borrowing
hereunder (i) in the case of a LIBOR Borrowing denominated in US Dollars,
not later than 11:00 a.m., Local Time, three Business Days before the
date of such prepayment (or, in the case of a prepayment under paragraph (b) or
(c) above, as soon thereafter as practicable), (ii) in the case of a
LIBOR Borrowing denominated in an Alternative Currency or a EURIBOR Borrowing,
not later than 11:00 a.m., Local Time, four Business days before the date
of such prepayment (or, in the case of a prepayment under paragraph (b) or
(c) above, as soon thereafter as practicable) and (iii) in the case
of an ABR Borrowing, not later than 11:00 a.m., Local Time, on the date of
such 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 optional prepayment is given in connection with a conditional notice
of termination of the Commitments as contemplated by Section 2.08, then
such notice of prepayment may be revoked if such notice of termination is
revoked in accordance with Section 2.08. 
Promptly following receipt of any such notice, the Applicable Agent
shall advise the applicable Lenders of the contents thereof.  Each partial prepayment of any Borrowing
shall be in an amount that would be permitted in the case of an advance of a
Borrowing of the same Type as provided in Section 2.02.  Each prepayment of a 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 2.12 and (ii) any break
funding payments pursuant to Section 2.15.

 

SECTION 2.11.
Fees.  (a) The Company agrees to pay
to the Facility Agent, in US Dollars, for the account of each Lender, a
commitment fee, which shall accrue at the Applicable Rate on the daily unused
amount (determined, in the case of the Spanish Tranche Commitments, on the
basis of the US Dollar Equivalents of the outstanding Spanish Tranche Revolving
Loans) of each of the Commitments of such 

 

50

 

Lender during the period from and including the Closing Date to but
excluding the date on which the last of such Commitments terminates.  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 all the Commitments shall have terminated,
commencing on the first such date to occur after the Closing Date.  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
with respect to the Commitments, a US Tranche Commitment or a Spanish Tranche
Commitment of a Lender shall be deemed to be used to the extent of the
outstanding Revolving Loans and LC Exposure of such Lender under such Tranche
(and the Swingline Exposure of such Lender shall be disregarded for such
purpose).

 

(b) 
Each Borrower agrees to pay (i) to the Facility Agent for the account of (A) in
the case of the Company, each US Tranche Lender and (B) in the case of
ICE, each Spanish Tranche Lender, a participation fee with respect to such
Lender’s participations in Letters of Credit under the US Tranche or the
Spanish Tranche, as applicable, which shall accrue at the Applicable Rate used
to determine the interest rate applicable to LIBOR or EURIBOR Revolving Loans,
on the daily amount of such Lender’s LC Exposure (excluding any portion thereof
attributable to unreimbursed LC Disbursements) under the applicable Tranche
during the period from and including the US Tranche Effective Date to but
excluding the later of the date on which such Lender’s Commitment under the
applicable Tranche terminates and the date on which such Lender ceases to have
any LC Exposure under the applicable Tranche, and (ii) to the Issuing Bank
in respect of (A) in the case of the Company, the US Tranche LC Exposure
and (B) in the case of ICE, the Spanish Tranche LC Exposure, a fronting
fee, which shall accrue at a rate equal to 0.125% per annum on the average
daily amount of the LC Exposure under such Tranche (excluding any portion thereof
attributable to unreimbursed LC Disbursements) during the period from and
including the US Tranche Effective Date to but excluding the later of the date
of termination of all Revolving Commitments and the date on which there ceases
to be any LC Exposure, as well as the Issuing Bank’s standard fees with respect
to the issuance, amendment, renewal or extension of any Letter of Credit or
processing of drawings thereunder. 
Participation fees and fronting fees accrued or becoming payable in
respect of Letters of Credit issued through and including the last day of
March, June, September and December of each year shall be payable on
the third Business Day following such last day, commencing on the first such
date to occur after the US Tranche Effective Date; provided that all
such fees with respect to a Tranche shall be payable on the date on which the
Commitments under such Tranche terminate and any such fees accruing after the
date on which such Commitments terminate shall be payable on demand.  Any other fees payable to the Issuing Bank
pursuant to this paragraph shall be payable within 10 days after
demand.  All participation 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).

 

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

 

51

 

(d) 
All fees payable hereunder shall be paid on the dates due, in immediately
available funds, to the Facility Agent (or to the Issuing Bank, in the case of
fees payable to it) for distribution (i) in the case of commitment fees,
to the Lenders and (ii) in the case of the participation fees, to the US
Tranche Lenders.  Fees paid shall not be
refundable under any circumstances.

 

SECTION 2.12.
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 Revolving Loans comprising each LIBOR Revolving Borrowing shall bear
interest at the Adjusted LIBO Rate for the Interest Period in effect for such
Borrowing plus the Applicable Rate.

 

(c) 
The Revolving Loans comprising each EURIBOR Revolving Borrowing shall bear
interest at the Adjusted EURIBO Rate for the Interest Period in effect for such
Borrowing plus the Applicable Rate.

 

(d) 
Notwithstanding the foregoing, if any principal of or interest on any Loan or
any fee or other amount payable by either 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.

 

(e) 
Accrued interest on each Loan shall be payable in arrears on each Interest
Payment Date for such Loan and upon the termination of the Commitments; provided
that (i) interest accrued pursuant to paragraph (d) 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 or a Swingline Loan
prior to the end of the US Tranche 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
LIBOR Revolving Loan or EURIBOR 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.  All
interest shall be payable in the currency in which the applicable Loan is
denominated.

 

(f) 
All interest hereunder shall be computed on the basis of a year of
360 days, except that (i) interest on Borrowings denominated in
Sterling and (ii) interest computed by reference to the Alternate Base
Rate at times when the Alternate Base Rate is based on the Prime Rate shall
each be computed on the basis of a year of 365 days (or, except in the
case of Borrowings denominated in Sterling, 366 days in a leap year), 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 Adjusted LIBO Rate, Adjusted EURIBO Rate 

 

52

 

or Alternate Base Rate shall be determined by the
Applicable Agent, and such determination shall be conclusive absent manifest
error.

 

SECTION 2.13.
Alternate Rate of Interest.  If
prior to the commencement of any Interest Period for a LIBOR Borrowing
denominated in any currency or a EURIBOR Borrowing denominated in Euros:

 

(i) the Applicable 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 Adjusted EURIBO Rate, as the case may be, for such Interest Period; or

 

(ii) the Applicable Agent is advised by
a majority in interest of the Lenders that would participate in such Borrowing
that the LIBO Rate or EURIBO Rate, as the case may be, for such Interest Period
will not adequately and fairly reflect the cost to such Lenders of making or
maintaining the Loans included in such Borrowing for such Interest Period;

 

then the Applicable Agent shall give notice thereof to the applicable
Borrower and the applicable Lenders by telephone or telecopy as promptly as
practicable thereafter and, until the Applicable Agent notifies the applicable
Borrower and the applicable Lenders that the circumstances giving rise to such
notice no longer exist, (i) any Interest Election Request that requests
the conversion of any affected Revolving Borrowing to, or continuation of any
affected Revolving Borrowing as, a LIBOR Borrowing or a EURIBOR Borrowing, as the
case may be, shall be ineffective, (ii) any affected LIBOR Borrowing or
EURIBOR Borrowing that is requested to be continued shall be repaid on the last
day of the then current Interest Period applicable thereto and (iii) any
Borrowing Request for an affected LIBOR Borrowing or a EURIBOR Borrowing shall
be ineffective.

 

SECTION 2.14.
Increased Costs.  (a)  If any Change in Law shall:

 

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

 

(ii) impose on any Lender, the Issuing
Bank or the London or European interbank market any other condition affecting
this Agreement or LIBOR Loans or EURIBOR Loans made by such Lender or any
Letter of Credit or participations therein;

 

and the result of any of the foregoing shall be to increase the cost to
such Lender of making or maintaining any LIBOR Loan or EURIBOR Loan (or of
maintaining its obligation to make any such Loan) or to increase the cost to
such Lender or the Issuing Bank of participating in, issuing or maintaining any
Letter of Credit or to reduce the amount of any sum received or receivable by
such Lender or the Issuing Bank hereunder (whether of principal, interest or
otherwise), then the applicable Borrower will pay to 

 

53

 

such Lender or the Issuing Bank, as the case may be, such additional
amount or amounts as will compensate such Lender or the Issuing Bank, as the
case may be, for such additional costs incurred or reduction suffered.

 

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

 

(c) 
A certificate of a Lender or the Issuing Bank setting forth the amount or
amounts necessary to compensate such Lender or the Issuing Bank or its holding
company, as 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 such Lender or the 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 the Issuing Bank to demand
compensation pursuant to this Section shall not constitute a waiver of
such Lender’s or the Issuing Bank’s right to demand such compensation; provided
that the applicable Borrower shall not be required to compensate a Lender or
the Issuing Bank pursuant to this Section for any increased costs or
reductions incurred more than 180 days prior to the date that such Lender
or the 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
the 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 180-day period referred to above shall be extended to
include the period of retroactive effect thereof.

 

SECTION 2.15.
Break Funding Payments.  In the
event of (a) the payment of any principal of any LIBOR Loan or any EURIBOR
Loan other than on the last day of an Interest Period applicable thereto
(including as a result of an Event of Default), (b) the conversion of any
LIBOR Loan or any EURIBOR Loan other than on the last day of the Interest
Period applicable thereto, (c) the failure to borrow, convert, continue or
prepay any LIBOR Loan or any EURIBOR Loan on the date specified in any notice
delivered pursuant hereto (regardless of whether such notice may be revoked
under Section 2.10(d) and is revoked in accordance therewith) or (d) the
assignment of any LIBOR Loan or any EURIBOR Loan other than on the last day of
the Interest Period applicable thereto as a result of a request by the
applicable Borrower pursuant to Section 2.18 or the CAM 

 

54

 

Exchange, then, in any such event, the applicable Borrower shall
compensate each Lender for the loss, cost and expense attributable to such
event.  In the case of a LIBOR Loan or a
EURIBOR Loan, 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 or the Adjusted
EURIBO Rate, as the case may be, 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 that 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 applicable
currency of a comparable amount and period from other banks in the London or
European interbank market.  A certificate
of any Lender setting forth in reasonable detail any amount or amounts that
such Lender is entitled to receive pursuant to this Section shall be
delivered to the Company and shall be conclusive absent manifest error.  The Company shall pay such Lender the amount
shown as due on any such certificate within 10 days after receipt thereof.

 

SECTION 2.16.
Taxes.  (a) Any and all
payments by or on account of any obligation of a Credit Party hereunder or
under any other Loan Document shall be made free and clear of and without
deduction for any Indemnified Taxes or Other Taxes; provided that if any
Credit Party shall be required to deduct any Indemnified Taxes or Other Taxes
from such payments, then (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section) each Agent, each
Lender and the Issuing Bank (as the case may be) receives an amount equal to
the sum it would have received had no such deductions been made, (ii) such
Credit Party shall make such deductions and (iii) such Credit Party shall
pay the full amount deducted to the relevant Governmental Authority in
accordance with applicable law.

 

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

 

(c) 
Each relevant Credit Party shall indemnify each Agent, each Lender and the
Issuing Bank, within 10 days after written demand therefor, for the full
amount of any Indemnified Taxes or Other Taxes paid by such Agent, such Lender
or the Issuing Bank, as the case may be, on or with respect to any payment by
or on account of any obligation of such Credit Party hereunder or under any
other Loan Document (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section) and any
penalties, surcharges, interest and reasonable expenses arising therefrom or
with respect thereto, whether or not such Indemnified Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental
Authority.  A certificate setting forth
the amount of such payment or liability delivered to the Company by a Lender or
the Issuing Bank, or by the Facility Agent on its own behalf or on behalf of a
Lender or the Issuing Bank, shall be conclusive absent manifest error.

 

55

 

(d) 
As soon as practicable after any payment of Indemnified Taxes or Other Taxes by
a Credit Party to a Governmental Authority, such Credit Party shall deliver to
the Facility 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
Facility Agent.

 

(e) 
Any Lender that is entitled to an exemption from or reduction of withholding
tax under the laws of the jurisdiction in which a Borrower is located, or any
treaty to which such jurisdiction is a party, with respect to payments under
this Agreement shall deliver to the Company (with a copy to the Facility
Agent), at the time or times prescribed by applicable law, such properly
completed and executed documentation prescribed by applicable law or reasonably
requested by the Company as will permit such payments to be made without
withholding or at a reduced rate; provided that, except in the case of
exemptions from or reductions of withholding taxes (i) under the laws of
the United States of America or (ii) for which such Lender is eligible on
the date it becomes a party to this Agreement, such Lender has received written
notice from the Company advising it of the availability of such exemption or
reduction and containing all applicable documentation.  Each Lender shall promptly notify the Company
at any time it determines that it is no longer in a position to provide any
such previously delivered documentation to the Company.

 

(f) 
Value Added Tax.  All amounts
payable by any Credit Party to the Agents, the Lenders or the Issuing Bank
shall be deemed to be exclusive of any VAT. 
If VAT is payable on any amount paid to the Agents, the Lenders or the
Issuing Bank by any Credit Party, the Borrower or such Credit Party shall pay
to the Agents, the Lenders or the Issuing Bank an amount equal to the amount of
the VAT.

 

SECTION 2.17.
Payments Generally; Pro Rata Treatment; Sharing of Set-offs.  (a) Each Borrower shall make each
payment required to be made by it hereunder or under any other Loan Document
(whether of principal, interest, fees or reimbursement of LC Disbursements, or
of amounts payable under Section 2.14, 2.15, 2.16 or 2.19, or otherwise)
prior to the time expressly required hereunder or under such other Loan
Document for such payment or, if no such time is expressly required, prior to
12:00 noon, Local Time, 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
Applicable 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 to the
Applicable Agent for the account of the Lenders to such account as the
Applicable Agent shall from time to time specify in one or more notices
delivered to the Company, except that payments to be made directly to the
Issuing Bank or Swingline Lender as expressly provided herein shall be made directly
to such parties and payments pursuant to Sections 2.14, 2.15, 2.16, 2.19 and
11.03 shall be made directly to the Persons entitled thereto.  The Applicable Agent shall distribute any
such payments received by it for the account of any other Person to the
appropriate recipient promptly following receipt thereof.  If any payment under any Loan Document 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 

 

56

 

payable for the period of such extension.  All payments hereunder of principal or
interest in respect of any Loan or LC Disbursement shall, except as otherwise
expressly provided herein, be made in the currency of such Loan or LC
Disbursement; all other payments hereunder and under each other Loan Document
shall be made in US Dollars.  Any payment
required to be made by any Agent hereunder shall be deemed to have been made by
the time required if such Agent shall, at or before such time, have taken the
necessary steps to make such payment in accordance with the regulations or
operating procedures of the clearing or settlement system used by such Agent to
make such payment.

 

(b) 
If at any time insufficient funds are received by the Agents from any Borrower
(or from the Company as guarantor of the Obligations of such Borrower pursuant
to Article X) and available to pay fully all amounts of principal, unreimbursed
LC Disbursements, interest and fees then due from such Borrower hereunder, such
funds shall be applied (i) first, towards payment of interest and
fees then due from such Borrower 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 of the Loans
and unreimbursed LC Disbursements then due from such Borrower hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
principal and unreimbursed LC Disbursements then due to such parties.  It is expressly agreed that the receipt by
the Facility Agent or any Lender of any payment of principal of any Loans
without an express reservation of the right to collect any interest accrued
thereon will not terminate the obligation of the applicable Borrower with
respect to such interest.

 

(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 its US
Tranche Revolving Loans, Spanish Tranche 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 US Tranche Revolving
Loans, Spanish Tranche 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 US Tranche Revolving
Loans, Spanish Tranche 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 amounts of their respective US Tranche Revolving
Loans, Spanish Tranche 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 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 

 

57

 

so under applicable law, that any Lender acquiring
a participation pursuant to the foregoing arrangements may exercise against the
each 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 an Agent shall have received notice from a Borrower prior to the date on
which any payment is due to such Agent for the account of the Lenders or the
Issuing Bank hereunder that such Borrower will not make such payment, such
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 applicable Lenders or the Issuing Bank, 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 applicable Lenders or the
Issuing Bank, as the case may be, severally agrees to repay to such Agent
forthwith on demand the amount so distributed to such Lender or 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 Agent, at a rate determined
by the Agent in accordance with banking industry rules on interbank
compensation.

 

(e) 
If any Lender shall fail to make any payment required to be made by it pursuant
to Section 2.04(c), 2.05(d) or (e), 2.06(b), 2.17(d) or 11.03(c) then
the Facility Agent may, in its discretion (notwithstanding any contrary
provision hereof), apply any amounts thereafter received by any Agent for the
account of such Lender to satisfy such Lender’s obligations under such Sections
until all such unsatisfied obligations are fully paid.

 

SECTION 2.18.
Mitigation Obligations; Replacement of Lenders.  (a) If any Lender requests compensation under
Section 2.14 or 2.19, or if any Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 2.16, or if any Borrower is required to
pay any additional interest to any Lender pursuant to Section 2.19, then
such Lender shall use reasonable efforts to designate a different lending
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 2.14, 2.16 or
2.19, 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
Borrowers hereby agree 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 2.14 or 2.19, (ii) any
Credit Party is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.16,
(iii) any Credit Party is required to pay any additional interest to any
Lender pursuant to Section 2.19 or (iv) any Lender defaults in its
obligation to fund Loans hereunder, then the applicable Borrower may, at its
sole expense and effort, upon notice to such Lender and the Facility Agent,
require such Lender to assign and delegate, without recourse (in accordance
with and subject to the restrictions contained in Section 11.04), all its 

 

58

 

interests, rights 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
(x) such Borrower shall have received the prior written consent of the
Facility Agent (and, if a US Tranche Commitment is being assigned, the Issuing
Bank), which consent, in each case, shall not be unreasonably withheld,
(y) such Lender shall have received payment of an amount equal to the
outstanding principal of its Loans and funded 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, funded participations and accrued interest and
fees) or such Borrower (in the case of all other amounts) and (z) in the
case of any such assignment resulting from a claim for compensation under Section 2.14
or 2.19 or payments required to be made pursuant to Section 2.16 or
additional interest required pursuant to Section 2.19, such assignment
will result in a material 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 applicable Borrower
to require such assignment and delegation cease to apply.

 

SECTION 2.19.
Foreign Subsidiary Costs.  (a) If
the cost to any Lender of making or maintaining any Loan to ICE is increased
(or the amount of any sum received or receivable by any Lender (or its
applicable lending office) is reduced) by an amount deemed in good faith by
such Lender to be material, by reason of the fact that ICE is incorporated in,
or conducts business in, a jurisdiction outside the United States of America,
ICE shall indemnify such Lender for such increased cost or reduction within 15
days after demand by such Lender (with a copy to the Facility Agent).  A certificate of such Lender claiming
compensation under this paragraph and setting forth the additional amount or
amounts to be paid to it hereunder (and the basis for the calculation of such
amount or amounts) shall be conclusive in the absence of manifest error.

 

(b) 
Each Lender will promptly notify the Company and the Facility Agent of any
event of which it has knowledge that will entitle such Lender to additional
interest or payments pursuant to paragraph (a) above, but in any event
within 45 days after such Lender obtains actual knowledge thereof; provided
that (i) if any Lender fails to give such notice within 45 days after it
obtains actual knowledge of such an event, such Lender shall, with respect to
compensation payable pursuant to this Section in respect of any costs
resulting from such event, only be entitled to payment under this Section for
costs incurred from and after the date 45 days prior to the date that such
Lender does give such notice and (ii) each Lender will designate a
different applicable lending office, if, in the judgment of such Lender, such
designation will avoid the need for, or reduce the amount of, such compensation
and will not be otherwise disadvantageous to such Lender.

 

SECTION 2.20.
Redenomination of Certain Alternative Currencies.  (a) Each obligation of any party to this
Agreement to make a payment denominated in the national currency unit of any
member state of the European Union that adopts the Euro as its lawful currency
after the Closing Date shall be redenominated into Euro at the time of such
adoption (in accordance with the EMU Legislation).  If, in relation to the currency of any such
member state, the basis of accrual of interest expressed in this 

 

59

 

Agreement in respect of that currency shall be inconsistent with any
convention or practice in the London interbank market for the basis of accrual
of interest in respect of the Euro, such expressed basis shall be replaced by
such convention or practice with effect from the date on which such member
state adopts the Euro as its lawful currency; provided that if any
Borrowing in the currency of such member state is outstanding immediately prior
to such date, such replacement shall take effect, with respect to such Borrowing,
at the end of the then current Interest Period.

 

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

 

ARTICLE III

Representations and Warranties

 

Each Borrower represents and warrants to the
Lenders that:

 

SECTION 3.01.
Organization; Powers.  Each
Borrower and each Material Subsidiary is duly organized, validly existing and
(to the extent the concept is applicable in its jurisdiction of organization)
in good standing 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 in, every jurisdiction where such
qualification is required.

 

SECTION 3.02.
Authorization; Enforceability. 
The Transactions to be entered into by each Credit Party will be, when
entered into and at all times thereafter, within such Credit Party’s corporate
or other organizational powers and will have been duly authorized by all
necessary corporate or other organizational and, if required, stockholder or
other equity holder action.  This
Agreement has been duly executed and delivered by each Borrower and
constitutes, and each other Loan Document to which any Credit Party is to be a
party, when executed and delivered by such Credit Party, will constitute, a
legal, valid and binding obligation of such Borrower or Credit Party (as the
case may be), enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and 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 other action by any Governmental Authority,
except (i) such consents, approvals, registrations, or filings as have
been obtained or made and are in full force and effect; (ii) filings
necessary to perfect Liens created under the Loan Documents; (iii) in the
case of 

 

60

 

Transactions applicable to the Spanish Tranche (other than in respect
of the Deferred Collateral Requirement), such consents, approvals,
registrations, or filings as will have been obtained or made and will be in
full force and effect as of the Spanish Tranche Effective Date; and (iv) in
the case of Transactions required for the satisfaction of the Deferred
Collateral Requirement, such consents, approvals, registrations, or filings as
will have been obtained or made and will be in full force and effect as of the
date (if any) on which such requirement is satisfied, (b) when entered
into and at all times thereafter, will not violate any applicable law or
regulation or the charter, by-laws or other organizational documents of either
Borrower or any of the 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 either Borrower or any of the Subsidiaries or
its assets, or give rise to a right thereunder to require any payment to be
made by either Borrower or any of the Subsidiaries, and (d) will not
result in the creation or imposition of any Lien on any asset of either
Borrower or any of the Subsidiaries, except Liens created under the Loan
Documents.

 

SECTION 3.04.
Financial Condition; No Material Adverse Change.  (a) The Company has heretofore furnished to
the Lenders its consolidated balance sheets and its consolidated statements of
operations, stockholders equity and cash flows (i) as of and for the
fiscal year ended December 31, 2005, reported on by Ernst & Young
LLP, independent public accountants, and (ii) as of and for the fiscal
quarter and the portion of the fiscal year ended March 31, 2006, certified
by its chief financial officer.  Such financial
statements present fairly, in all material respects, the financial position,
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) 
Except as disclosed in the financial statements referred to in paragraph (a) above
or the notes thereto or in the Information Memorandum, after giving effect to
the Transactions, none of the Company or the Subsidiaries has, as of the US
Tranche Effective Date, any material contingent liabilities, unusual long-term
commitments or unrealized losses.

 

(c) 
Since December 31, 2005, there has been no material adverse change in the
business, assets, operations, liabilities (actual or contingent), condition
(financial or otherwise) or prospects of the Company and the Subsidiaries,
taken as a whole.

 

SECTION 3.05.
Properties.  (a) The Company and
the Subsidiaries have good title to, or valid leasehold interests in, all their
real and personal property, except for defects that do not interfere with their
ability to conduct their businesses as currently conducted and could not,
individually or in the aggregate, reasonably be expected to result in a
Material Adverse Effect.

 

(b) 
The Company and the Subsidiaries own, or are licensed to use, all trademarks,
tradenames, copyrights, patents and other intellectual property material to
their businesses, and the use thereof by the Company and the Subsidiaries do
not infringe 

 

61

 

upon the rights of any other Person, except for
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 or proceedings by or before any
Governmental Authority or arbitrator pending against or, to the knowledge of
either Borrower, threatened against or affecting the Company or any of the
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 any of the Loan Documents 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 the Subsidiaries (i) has failed to
comply with any Environmental Law or to obtain, maintain or comply with any
permit, license or other approval required under any Environmental Law, (ii) has
become subject to any Environmental Liability, (iii) has received notice
of any claim with respect to any Environmental Liability or (iv) knows of
any basis for any Environmental Liability.

 

SECTION 3.07.
Compliance with Laws and Agreements. 
The Borrower and the Subsidiaries are in compliance with all laws,
regulations and orders of any Governmental Authority applicable to them or
their property and all agreements and other instruments binding upon them or
their property, except where the failure to be in compliance, individually or
in the aggregate, could not reasonably be expected to result in a Material
Adverse Effect.  No Default has occurred
and is continuing.

 

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

 

SECTION 3.09.
Taxes.  The Borrower and the
Subsidiaries have timely filed or caused to be filed all Tax returns and
reports required to have been filed by them and have paid or caused to be paid
all Taxes required to have been paid by them, except (a) any Taxes that
are being contested in good faith by appropriate proceedings and for which the
Company or the applicable Subsidiary, has set aside on its books reserves as
required by GAAP 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 ERISA Events for which liability is reasonably expected to occur, could
reasonably be expected to result in a Material Adverse Effect.  The present value of all accumulated benefit
obligations under each Plan (based on the assumptions used for purposes of
Statement of Financial Accounting Standards No. 87) did not, as of the
date of the most recent financial statements reflecting such amounts, exceed by
more than US$1,000,000 the fair market value of the assets of such Plan, and
the present value of all accumulated benefit obligations of all underfunded
Plans (based on the assumptions used for purposes of 

 

62

 

Statement of Financial Accounting Standards No. 87) did not, as of
the date of the most recent financial statements reflecting such amounts,
exceed by more than US$5,000,000 the fair market value of the assets of all
such underfunded Plans.

 

SECTION 3.11.
Disclosure.  Neither the
Information Memorandum nor any of the other reports, financial statements,
certificates or other information furnished by or on behalf of any Credit Party
to the Administrative Agent or any Lender in connection with the negotiation of
this Agreement or any other Loan Document or delivered hereunder or thereunder
contains any material misstatement of fact or omits to state any material fact
necessary to make the statements therein, taken as a whole and 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.
Subsidiaries and Joint Ventures.  Schedule 3.12
sets forth (a) the name and jurisdiction of organization of, and the
ownership interest of the Company and the Subsidiaries in (i) each
Subsidiary of the Company and (ii) each joint venture in which the Company
or any Subsidiary holds an Equity Interest, in each case as of the Closing
Date, and identifies as of the Closing Date (iii) each Material Subsidiary
and (iv) each Subsidiary that is required to be a Subsidiary Credit Party
in order for the Guarantee and Collateral Requirement to be satisfied.

 

SECTION 3.13.
Solvency.  Immediately after the
consummation of the Transactions to occur on each of the US Tranche Effective
Date and the Spanish Tranche Effective Date and immediately following the
making of each Loan made on each such Effective Date and after giving effect to
the application of the proceeds of such Loans, (a) the fair value of the
assets of each Credit Party, at a fair valuation, will exceed its debts and
liabilities, subordinated, contingent or otherwise; (b) the present fair
saleable value of the property of each Credit Party will be greater than the
amount that will be required to pay the probable liability of its debts and
other liabilities, subordinated, contingent or otherwise, as such debts and
other liabilities become absolute and matured; (c) each Credit Party will
be able to pay its debts and liabilities, subordinated, contingent or
otherwise, as such debts and liabilities become absolute and matured; and (d) each
Credit Party will not have unreasonably small capital with which to conduct the
business in which it is engaged as such business is now conducted and is
proposed to be conducted following the US Tranche Effective Date.

 

SECTION 3.14.
Collateral Matters.  (a) When
executed and delivered, the US Guarantee and Collateral Agreement and the
Walden Collateral Agreement will be effective to create in favor of the
Collateral Agent for the ratable benefit of the applicable Secured Parties a
valid and enforceable security interest in the Collateral (as defined in each
such agreement) and (i) when the Collateral (as defined in the US Guarantee
and Collateral Agreement) constituting certificated securities (as defined in
the Uniform Commercial Code) is delivered to the Collateral Agent under the US
Guarantee and Collateral Agreement together with instruments of transfer duly
endorsed in blank, the US Guarantee and Collateral Agreement will constitute a
fully perfected Lien on, and 

 

63

 

security interest in, all right, title and interest of the pledgors
thereunder in such Collateral, prior and superior in right to any other Person,
and (ii) when financing statements in appropriate form are filed in the
offices specified in the Perfection Certificate, the US Guarantee and
Collateral Agreement and the Walden Collateral Agreement will each constitute a
fully perfected Lien on and security interest in all right, title and interest
of the Credit Parties in the Collateral (as defined in each such agreement) to
the extent perfection can be obtained by filing Uniform Commercial Code
financing statements, prior and superior to the rights of any other Person,
except for rights secured by Liens expressly permitted by Section 6.02.

 

(b) 
Upon the recordation of the Walden Collateral Agreement or a memorandum of such
Agreement with the United States Patent and Trademark Office, the Lien created
under the Walden Collateral Agreement will constitute a fully perfected Lien on
all right, title and interest of the Credit Parties in the Pledged Walden
Trademarks in which a security interest may be perfected by filing in the
United States and its territories and possessions, in each case prior and
superior in right to any other Person, subject to Liens permitted under Section 6.02.

 

(c) 
Each Credit Support Document other than the US Guarantee and Collateral
Agreement and the Walden Collateral Agreement that purports to create a
security interest in any Collateral, when executed and delivered, will be
effective under applicable law to create in favor of the Collateral Agent for
the ratable benefit of the applicable Secured Parties a valid and enforceable
security interest in the Collateral subject thereto, and will constitute a
fully perfected Lien on and security interest in all right, title and interest
of the applicable Credit Parties in the Collateral subject thereto, prior and
superior to the rights of any other Person, except for rights secured by Liens
expressly permitted by Section 6.02.

 

ARTICLE IV

Conditions

 

SECTION 4.01.
US Tranche Effective Date.  The
obligations of the US Tranche Lenders to make US Tranche Revolving Loans and of
the Issuing Bank to issue US Tranche 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 11.02):

 

(a) The Facility Agent (or its counsel)
shall have received from each party hereto either (i) a counterpart of
this Agreement signed on behalf of such party or (ii) written evidence
satisfactory to the Facility Agent (which may include telecopy transmission of
a signed signature page of this Agreement) that such party has signed a
counterpart of this Agreement.

 

(b) The Facility Agent shall have
received favorable written opinions (addressed to the Agents and the Lenders
and dated the US Tranche Effective Date) of (i) DLA Piper Rudnick Gray
Cary US LLP, counsel for the Credit 

 

64

 

Parties, substantially in the form of Exhibit D-1, (ii) Houthoff
Buruma, Dutch counsel for the Company, substantially in the form of Exhibit D-2
and (iii) Robert W. Zentz, General Counsel of the Company, substantially
in the form of Exhibit D-3. 
The applicable Credit Parties hereby request such counsel to deliver
such opinions.

 

(c) The Facility Agent shall have
received such documents as the Facility Agent or its counsel may reasonably
request relating to (i) the organization, existence and good standing of
the Company and each Subsidiary party to a Credit Support Document applicable
to the US Tranche (such Subsidiaries, together with the Company, the “US Tranche
Credit Parties” and such documents, together with this Agreement, the “US
Tranche Credit Documents”) (ii) the authorization of the Transactions
applicable to the US Tranche and (iii) any other legal matters relating to
the US Tranche Credit Parties, the US Tranche Credit Documents or the
Transactions referred to above, all in form and substance satisfactory to the
Facility Agent and its counsel.

 

(d) The Facility Agent shall have
received a certificate, dated the US Tranche 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 4.03 and paragraphs (e) and (g) of this Section.

 

(e) The Guarantee and Collateral
Requirement (other than the requirements set forth in clauses (a)(iv), (a)(v),
(a)(vi), (a)(vii), (a)(viii), (a)(ix) and (a)(x) of the definition of such
term, in clause (b) of the definition of such term to the extent
applicable to Equity Interests of any Subsidiary owned directly by Fleet Street
IU USA, Laureate I BV, ICE or any other Foreign Subsidiary, in clause (c) of
the definition of such term to the extent applicable to Indebtedness owed to
ICE, in clause (d) of the definition of such term to the extent applicable
to any Foreign Pledge Agreement (other than the Fleet Street IU Netherlands
Pledge Agreement (Company)), or in clause (e) of the definition of such
term to the extent applicable to requirements referred to above in this
parenthetical) shall be satisfied.

 

(f) The Facility Agent shall have
received a completed Perfection Certificate dated the US Tranche Effective Date
and signed by a Financial Officer of the Company, together with all attachments
contemplated thereby, including the results of a search of the Uniform
Commercial Code (or equivalent) filings made with respect to the Company and
each US Material Subsidiary in the jurisdictions contemplated by the Perfection
Certificate and copies of the financing statements (or similar documents)
disclosed by such search and evidence reasonably satisfactory to the
Administrative Agent that the Liens indicated by such financing statements (or
similar documents) are permitted by Section 6.02 or have been released.

 

65

 

 

(g)
The Facility Agent shall have received all fees and other amounts due and
payable on or prior to the US Tranche Effective Date, including, to the extent
invoiced, reimbursement or payment of all out-of-pocket expenses (including
fees, charges and disbursements of counsel) required to be reimbursed or paid
by the Company hereunder or under any other Loan Document.

 

(h)
The Existing Credit Agreement and the commitments thereunder shall have been
terminated, the loans and other amounts outstanding or payable thereunder shall
have been paid in full and all letters of credit outstanding thereunder shall
have expired or been terminated or arrangements shall have been made for such
letters of credit to become Existing Letters of Credit.

 

(i)
The Lenders shall have received all documentation and other information
reasonably requested by the Lenders or the Facility Agent under applicable
“know your customer” and anti-money laundering rules and regulations, including
the USA Patriot Act.

 

The
Facility Agent shall notify the Company and the Lenders of the US Tranche
Effective Date, and such notice shall be conclusive and binding.
Notwithstanding the foregoing, the obligations of the Lenders to make US
Tranche Revolving Loans and of the Issuing Bank to issue US Tranche Letters of
Credit hereunder shall not become effective unless each of the foregoing
conditions is satisfied (or waived pursuant to Section 11.02) at or prior to
5:00 p.m., New York City time, on August 18, 2006 (and, in the event such
conditions are not so satisfied or waived, the Commitments shall terminate at
such time).

 

SECTION 4.02. Spanish
Tranche Effective Date. The obligations of the Spanish Tranche Lenders to
make Spanish Tranche Revolving Loans and of the Issuing Bank to issue Spanish
Tranche 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 11.02):

 

(a)
Each of the conditions set forth in Section 4.01 shall be satisfied (or waived
in accordance with Section 11.02).

 

(b)
The Facility Agent shall have received favorable written opinions (addressed to
the Agents and the Lenders and dated the Spanish Tranche Effective Date) of (i)
Houthoff Buruma, Dutch counsel for the Company, in a form reasonably acceptable
to the Facility Agent, (ii) Gómez-Acebo & Pombo Abogados, S.L., Spanish
counsel for the Company and ICE, in a form reasonably acceptable to the
Facility Agent and (iii) counsel for each Designated Foreign Subsidiary Holding
Company, in a form reasonably acceptable to the Facility Agent. The applicable
Credit Parties hereby request such counsel to deliver such opinions.

 

(c)
The Facility Agent shall have received such documents (other than those
relating to the pledge required by the Deferred Collateral Requirement) as

 

66

 

the Facility Agent or its
counsel may reasonably request relating to the organization, existence and good
standing of each Credit Party, the authorization of the Transactions and any
other legal matters relating to the Credit Parties, the Loan Documents or the
Transactions, all in form and substance satisfactory to the Facility Agent and
its counsel.

 

(d)
The Facility Agent shall have received a certificate, dated the Spanish Tranche
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 4.03 and paragraphs (e) and (f) of
this Section.

 

(e)
The Guarantee and Collateral Requirement (other than the requirements of such
term that constitute the Deferred Collateral Requirement) shall be satisfied.

 

(f)
The Facility Agent shall have received all fees and other amounts due and
payable on or prior to the Spanish Tranche Effective Date, including, to the
extent invoiced, reimbursement or payment of all out-of-pocket expenses
(including fees, charges and disbursements of counsel) required to be
reimbursed or paid by the Company hereunder or under any other Loan Document.

 

(g)
The Facility Agent shall have received (i) a copy of the financial
transaction number (“Número de Operación Financiera” or
“N.O.F.”) assigned by the Bank of Spain to the credit facility established
hereby and (ii) a copy of the PE-1 form stamped with the seal of the Bank of
Spain.

 

The Facility Agent shall
notify the Company and the Lenders of the Spanish Tranche Effective Date, and
such notice shall be conclusive and binding. Notwithstanding the foregoing, the
obligations of the Lenders to make Spanish Tranche Revolving Loans and of the
Issuing Bank to issue Spanish Tranche Letters of Credit hereunder shall not
become effective unless each of the foregoing conditions is satisfied (or
waived pursuant to Section 11.02) at or prior to 5:00 p.m., New York City
time, on September 30, 2006 or such later date no later than 30 days thereafter
as the Facility Agent shall agree (and, in the event such conditions are not so
satisfied or waived, the Spanish Tranche Commitments shall terminate at such
time).

 

SECTION 4.03. Each Credit
Event. The obligation of each Lender to make a Loan on the occasion of any
Borrowing, and of the Issuing Bank 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 Credit Parties set forth in the Loan
Documents shall be true and correct in all material respects 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.

 

67

 

(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.

 

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 applicable Borrower on the date thereof as to the matters specified in
paragraphs (a) and (b) of this Section.

 

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 and all LC
Disbursements have been reimbursed, each Borrower covenants and agrees with the
Lenders that:

 

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

 

(a)
as soon as available, and in any event within 90 days after the end of
each fiscal year of the Company, its audited consolidated balance sheets and
its consolidated 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 Ernst &
Young 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)
as soon as available, and in any event within 45 days after the end of
each of the first three fiscal quarters of each fiscal year of the Company, its
consolidated balance sheets and its consolidated 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;

 

68

 

(c)
within three Business Days after 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 demonstrating compliance with Sections 6.11 and 6.12
(including an identification of the Excluded Subsidiaries), (iii) stating
whether any change in GAAP or in the application thereof has occurred since the
date of the Company’s 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
(iv) in the case of any certificate delivered in connection with financial
statements delivered under clause (a) above, setting forth the Company’s
Consolidated Tangible Assets as of the end of the fiscal year to which such
statements relate;

 

(d)
promptly after the same become publicly available, copies of all periodic and
other reports, proxy statements and other materials filed by the Company or any
Subsidiary with the SEC, or any Governmental Authority succeeding to any or all
of the functions of the SEC, or with any national securities exchange, or
distributed by the Company to its shareholders generally; and

 

(e)
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 any Loan Document, as the Facility
Agent or any Lender (through the Facility Agent) may reasonably request.

 

Information
required to be delivered pursuant to paragraph (a), (b) or (d) of this Section
shall be deemed to have been delivered if such information, or one or more
annual or quarterly reports containing such information, shall have been posted
by the Facility Agent on an IntraLinks or similar site to which the Lenders
have been granted access or shall be available on the website of the Securities
and Exchange Commission at http://www.sec.gov and the Company shall have
notified the Facility Agent of such availability; provided that the
Company shall deliver paper copies of such information to any Lender that
requests such delivery. Information required to be delivered pursuant to this
Section may also be delivered by electronic communications pursuant to procedures
approved by the Facility Agent.

 

SECTION 5.02. Notices of
Material Events. The Company will furnish to the Facility 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

 

69

 

or any Affiliate 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 liability
of the Company and the Subsidiaries in an aggregate amount exceeding
US$5,000,000; 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. Information
Regarding Collateral. (a)  The
Company will furnish to the Facility Agent prompt written notice of any change
(i) in any Credit Party’s legal name, as reflected in its organization
documents, (ii) in any Credit Party’s jurisdiction of organization or
corporate or other organizational structure and (iii) in any Credit
Party’s identity, Federal Taxpayer Identification Number or organization
number, if any, assigned by the jurisdiction of its organization. The Company
also agrees to promptly provide to the Facility Agent certified organizational
documents reflecting any of the changes described in the preceding sentence.
The Company agrees not to effect or permit any change referred to in the
preceding sentence unless all filings have been made under the Uniform
Commercial Code or otherwise that are required in order for the Collateral
Agent to continue at all times following such change to have a valid, legal and
perfected security interest in all the Collateral.

 

(b)  Each
year, at the time of delivery of annual financial statements with respect to
the preceding fiscal year pursuant to Section 5.01(a), the Company shall
deliver to the Facility Agent a certificate of a Financial Officer of the
Company (i) setting forth the information required pursuant to the Perfection
Certificate or confirming that there has been no change in such information
since the date of the Perfection Certificate delivered on the US Tranche
Effective Date or the date of the most recent certificate delivered pursuant to
this Section and (ii) certifying that all Uniform Commercial Code financing
statements or other appropriate filings, recordings or registrations, including
all refilings, rerecordings and reregistrations, have been filed of record in
each governmental, municipal or other appropriate office in each jurisdiction
to the extent necessary to protect and perfect the security interests under the
Credit Support Agreements for a period of not less than 18 months after the
date of such certificate (except as noted therein with respect to any
continuation or similar statements to be filed within such period).

 

SECTION 5.04. Existence;
Conduct of Business. The Company will, and will cause each of the
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,

 

70

 

licenses, permits, privileges, franchises, patents, copyrights,
trademarks and trade names material to the conduct of its business (including
all accreditations of  educational
institutions operated by it to the extent the loss of one or more such
accreditations would materially affect the ability of the Company or any
Material Subsidiary to conduct its business and operations as presently
conducted or could reasonably be expected to result in a Material Adverse
Effect); provided that the foregoing shall not prohibit any merger,
consolidation, liquidation or dissolution permitted under Section 6.03.

 

SECTION 5.05. Payment of
Obligations. The Company will, and will cause each of the Subsidiaries to,
pay its Indebtedness and other obligations, including Tax liabilities, 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 Subsidiary has set aside on its books adequate reserves
with respect thereto in accordance with GAAP, (c) such contest effectively
suspends collection of the contested obligation and the enforcement of any Lien
securing such obligation and (d) the failure to make payment pending such
contest could not reasonably be expected to result in a Material Adverse
Effect.

 

SECTION 5.06. Maintenance
of Properties. The Company will, and will cause each of the Subsidiaries
to, keep and maintain all property material to the conduct of its business in
good working order and condition, ordinary wear and tear excepted.

 

SECTION 5.07. Insurance.
The Company will, and will cause each of the Subsidiaries to, maintain, with
financially sound and reputable insurance companies insurance in such amounts
(with no greater risk retention) and against such risks as are customarily
maintained by companies of established repute engaged in the same or similar
businesses operating in the same or similar locations. The Company will furnish
to the Lenders, upon request of the Facility Agent, information in reasonable
detail as to the insurance so maintained.

 

SECTION 5.08. Books and
Records; Inspection and Audit Rights. The Company will, and will cause each
of the 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 the
Subsidiaries to, permit any representatives designated by the Facility 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 5.09. Compliance
with Laws. The Company will, and will cause each of the Subsidiaries to,
comply with all laws, rules, regulations and orders of any Governmental Authority
applicable to 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.

 

71

 

SECTION 5.10. Use of Proceeds
and Letters of Credit. The proceeds of the Loans and the Letters of Credit
will be used only for the purposes set forth in the recitals to this Agreement.
No part of the proceeds of any Loan will be used, whether directly or
indirectly, to purchase or carry any Margin Stock (as defined in Regulation U
of the Board), to extend credit to others for the purpose of purchasing or
carrying Margin Stock, or to refund Indebtedness originally incurred for any
such purpose, or for any other purpose that entails a violation of any of the
Regulations of the Board, including Regulations T, U and X.

 

SECTION 5.11. Subsidiaries.
(a)  The Company will cause each
Operating Subsidiary organized in a country other than the United States of
America at all times to be owned either (i) directly by ICE or (ii) directly or
indirectly by a Holding Company Subsidiary.

 

(b)  If (A)
at any time after the US Tranche Effective Date (i) any Subsidiary shall be
formed or acquired that constitutes a US Material Subsidiary, (ii) any Subsidiary not previously a US Material Subsidiary shall become a US Material Subsidiary, (iii) any
Subsidiary shall be formed or acquired the Equity Interests of which are owned
by the Company or any US Material Subsidiary or (iv) any
Subsidiary shall be formed or acquired that directly or indirectly owns any
Equity Interest in ICE, or (B) at any time after the Spanish Tranche Effective
Date (i) any Subsidiary shall be formed or acquired that constitutes a
Designated Foreign Subsidiary Holding Company, (ii) any Subsidiary not
previously a Designated Foreign Subsidiary Holding Company shall become a
Designated Foreign Subsidiary Holding Company or (iii) any Subsidiary shall be
formed or acquired the Equity Interests of which are owned by ICE, the Company
will promptly notify the Facility Agent and the Lenders thereof and will cause
the Guarantee and Collateral Requirement, to the extent applicable, to be
satisfied with respect to such Subsidiary within 30 days (or, in the event such
satisfaction cannot reasonably be accomplished within 30 days, then within such
longer period, not to exceed 90 days, as may be reasonably required) after such
Subsidiary is formed or acquired or becomes a US Material Subsidiary or a
Designated Foreign Subsidiary Holding Company. The Collateral Agent may grant
extensions of time for the satisfaction of the Guarantee and Collateral
Requirement with respect to any Subsidiary where it determines that such
satisfaction cannot be accomplished without undue effort or expense by the time
or times at which they would otherwise be required by this paragraph.

 

SECTION 5.12. Further
Assurances. The Company will, and will cause each Subsidiary to, execute
any and all further documents, financing statements, agreements and
instruments, and take all such further actions (including the filing and
recording of financing statements and other documents), which may be required
under any applicable law, or which the Facility Agent or the Required Lenders
may reasonably request, to cause the Guarantee and Collateral Requirement to be
and remain satisfied at all times (other than (a) prior to the Spanish Tranche
Effective Date, those portions of the Guarantee and Collateral Requirement
required to be satisfied under Section 4.02(e) but not under Section 4.01(e)
and (b) after the Spanish Tranche Effective Date, those portions of the
Guarantee and Collateral Requirement constituting the Deferred Collateral
Requirement that are not yet required to have been satisfied under Section
5.13), all at the

 

72

 

expense of the Credit Parties. The Company also agrees to provide to
the Facility Agent, from time to time upon request, evidence reasonably
satisfactory to the Facility Agent as to the perfection and priority of the Liens
created or intended to be created by the Credit Support Documents.

 

SECTION 5.13. Deferred
Collateral Requirement. The Borrowers will endeavor diligently, using all
commercially reaonable efforts, to satisfy the Deferred Collateral Requirement
as promptly as practicable. In connection therewith, the Borrowers will engage
appropriate foreign counsel to prepare and deliver to the Agents and the
Lenders such opinions as to the ICE Pledge Agreement, the validity, perfection
and enforceability of the pledge to be created thereunder and such other
matters relating to the pledge required by the Deferred Collateral Requirement
as the Facility Agent may reasonably request. The Borrowers will also provide
such documents (other than those previously provided pursuant to Section
4.01(c) and Section 4.02(c)) as the Facility Agent or its counsel may
reasonably request relating to the organization, existence and good standing of
each Credit Party, the authorization of the Transactions and any other legal
matters relating to the Credit Parties, the Loan Documents or the Transactions,
all in form and substance satisfactory to the Facility Agent and its counsel.

 

ARTICLE VI

Negative Covenants

 

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 and all LC Disbursements have been
reimbursed, the Borrowers covenant and agree with the Lenders that:

 

SECTION 6.01. Indebtedness;
Certain Equity Securities. (a) The Company will not, and will not permit
any Subsidiary to, create, incur, assume or permit to exist any Indebtedness,
except:

 

(i)
Indebtedness created under the Loan Documents, other Indebtedness existing on
the date hereof and listed on Schedule 6.01 and Permitted Refinancing
Indebtedness in respect of any such Indebtedness listed on Schedule 6.01;

 

(ii)
Permitted Unsecured Notes and/or Permitted Subordinated Notes of the Company; provided
that after giving effect to each issuance of such Notes, the Net Leverage Ratio
as of the most recent fiscal quarter end for which financial statements shall
have been delivered pursuant to Section 5.01(a) or (b), determined on a pro
forma basis giving effect to such issuance and to the payment of any
Indebtedness discharged with the proceeds thereof, shall be not greater than
the maximum Net Leverage Ratio permitted as of such quarter end under Section
6.11 reduced by 0.25;

 

(iii)  Indebtedness of Universidad del Valle de
Mexico, a Mexican SA,  created under a
line of credit established prior to the first anniversary of the

 

73

 

Closing Date, and Permitted
Refinancing Indebtedness in respect of any such Indebtedness, in each case not
Guaranteed, or secured by assets of, the Company or any US Subsidiary and in an
aggregate principal amount for all such Indebtedness and Refinancing
Indebtedness not exceeding US$60,000,000 outstanding at any time;

 

(iv)
Indebtedness (including Preferred Stock) of Foreign Subsidiaries (including
indebtedness of acquired companies) (in addition to the Indebtedness permitted
under (a)(i) and (a)(iii) of this Section) equal at any time to the greater of
US$150,000,000 or 50% of Consolidated Adjusted EBITDA for the most recent
period of four fiscal quarters for which financial statements shall have been
delivered pursuant to Section 5.01(a) or (b) (such greater amount being called
the “Maximum Amount”); provided that (A) such Indebtedness will
not be Guaranteed, or secured by assets of, the Company or any US Subsidiary,
(B) the amount of such Indebtedness secured by Liens on any assets may not
exceed one third of the Maximum Amount (it being agreed that secured Seller
Notes shall not be subject to such limitation) (C) any such Indebtedness in the
form of Seller Notes issued as consideration for any Permitted Acquisition
after the date hereof shall not constitute more than 50% of the aggregate
consideration for such Permitted Acquisition and (D) any such Indebtedness in the
form of Seller Notes shall not represent obligations of, or be Guaranteed or
secured by assets of, any Person other than the Subsidiary or Subsidiaries
acquired in the Permitted Acquisition (or acquisition prior to the Closing
Date) in which such Seller Notes were issued and any holding company Subsidiary
in the relevant jurisdiction owning such acquired Subsidiary or Subsidiaries
(with recourse to any such holding company Subsidiary that holds interests in
other Subsidiaries or Persons being limited to the stock of such acquired
Subsidiary or Subsidiaries); provided  further, that in addition
to the Indebtedness permitted under the preceding provisions of this clause
(iv), one or more Subsidiaries organized under the laws of the Federative
Republic of Brazil may issue Preferred Stock, prior to the second anniversary
of the Closing Date, in an aggregate amount not in excess of the lesser of (x)
US$25,000,000 and (y) the aggregate amount of Seller Notes listed on Schedule
6.01 that shall have been repaid (and not refinanced with other Indebtedness)
prior to the first anniversary of the Closing Date;

 

(v)
Indebtedness of the Company to any Subsidiary and of any Subsidiary to the
Company or any other Subsidiary; provided that such Indebtedness shall
not be transferred or pledged to any third party and shall be incurred in
compliance with Section 6.04;

 

(vi)
Guarantees by the Company of Indebtedness of any Subsidiary and by any
Subsidiary (other than Walden University, Inc.) of Indebtedness of the Company
or any other Subsidiary; provided that (A) such Guarantees shall be
incurred in compliance with Section 6.03, (B) no Subsidiary shall Guarantee
Indebtedness of the Company unless such Subsidiary is a Credit Party that has
Guaranteed the Obligations and (C) no Subsidiary shall Guarantee Indebtedness

 

74

 

of ICE unless such
Subsidiary is a Credit Party that has Guaranteed the Spanish Obligations;

 

(vii)
Indebtedness under Hedging Agreements permitted under Section 6.06;

 

(viii)
Indebtedness of a Subsidiary under any line of credit provided by a purchaser
of Title IV Student Loans solely to provide funds for the making by such
Subsidiary of Title IV Student Loans that such purchaser has committed to
purchase; provided that (A) the Title IV Student Loans made with
proceeds of such line of credit shall be promptly sold to such purchaser and
(B) borrowings under such line of credit shall not remain outstanding for more
than three Business Days;

 

(ix)
unsecured Indebtedness in an amount not greater than US$5,000,000 at any time
outstanding under one or more short-term advance or overdraft facilities
provided by one or more Lenders; and

 

(x)
Capital Lease Obligations of a US Subsidiary not greater than US$2,500,000 at
any time outstanding.

 

(b) The Company will not, and will not permit any
Subsidiary to, issue any Preferred Stock; provided that (i) the Company
may issue Qualified Preferred Stock and (ii) one or more Subsidiaries organized
under the laws of the Federative Republic of Brazil may issue Preferred Stock
to the extent such Preferred Stock is permitted under clause (iv) of paragraph
(a) above.

 

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 loans or
accounts receivable) or rights in respect of any thereof, except:

 

(i)
Liens created under the Loan Documents;

 

(ii)
Permitted Encumbrances;

 

(iii)
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 (A)
any such Lien shall not apply to any other property or asset of the Company or
any Subsidiary and (B) any 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;

 

(iv)
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 (A) such Lien is not
created in contemplation of or in connection with such acquisition or such
Person becoming

 

75

 

a Subsidiary, as the case
may be, (B) such Lien shall not apply to any other property or assets of
the Company or any Subsidiary and (C) 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;

 

(v)
Liens securing Seller Notes or other Indebtedness of Foreign Subsidiaries to
the extent such Seller Notes or other Indebtedness and such Liens are permitted
under Section 6.01(a)(iv);

 

(vi)
sales of Chilean Student Loans in Chilean Student Loan Securitization
Transactions and Liens on Chilean Student Loans securing the interests of
transferees thereof under Chilean Student Loan Securitization Transactions;

 

(vii)
sales of Title IV Student Loans in Qualified Title IV Sales Transactions in an
aggregate amount not to exceed US$100,000,000;

 

(viii)
sales of Title IV Student Loans funded with proceeds of Indebtedness permitted
under Section 6.01(a)(viii) and Liens securing such Indebtedness; provided
that (A) the proceeds of such sales are applied to reduce outstanding
Indebtedness (if any) under one or more lines of credit referred to in Section
6.01(a)(viii) and (B) such Liens shall not apply to any property or assets of
the Company or any Subsidiary other than such Title IV Student Loans and any
accounts established for the purpose of holding the proceeds of such
Indebtedness pending their use to fund such Title IV Student Loans;

 

(ix)
transfers of Indebtedness and accounts receivable permitted under Section 6.05(a)(iii);
and

 

(x)
Liens on any property or asset of the Company or any Subsidiary securing (i)
obligations other than Indebtedness in an aggregate amount at any time not in
excess of US$2,500,000 and (ii) Capital Lease Obligations permitted under
Section 6.01(a)(x).

 

SECTION 6.03. Fundamental
Changes. (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 liquidate or dissolve, except that, if at
the time thereof and immediately after giving effect thereto no Default shall
have occurred and be continuing, (i) any US Subsidiary (other than Walden
University, Inc.) may merge into or consolidate with a US Subsidiary in a
transaction in which the surviving or resulting Person is a US Subsidiary and
the Guarantee and Collateral Requirement is satisfied with respect to such
surviving or resulting Person, (ii) any Foreign Subsidiary (other than ICE) may
merge into another Foreign Subsidiary organized in its jurisdiction of
organization; provided, that if either such Foreign Subsidiary is a
Designated Foreign Subsidiary Holding Company and a Guarantor of the Spanish
Obligations, the surviving or resulting Person shall also be a Designated Foreign

 

76

 

Subsidiary Holding Company and a Guarantor of the Spanish Obligations,
(iii) any Subsidiary that is not a Subsidiary Credit Party (other than Walden
University, Inc.) may liquidate or dissolve into another Subsidiary if the
Company determines in good faith that such liquidation, dissolution, merger or
consolidation is in the best interests of the Company and is not materially
disadvantageous to the Lenders, and (iv) any Permitted Acquisition may be effected
through a merger of a Subsidiary and the acquired Person; provided that
any such merger or consolidation involving a Person that is not a wholly owned
Subsidiary immediately prior to such merger shall not be permitted unless also
permitted by Section 6.03.

 

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

 

(c) The Company will not permit any material
portion of its assets and operations outside the United States of America to be
owned or conducted at any time by Subsidiaries other than ICE or one or more
other Subsidiaries directly or indirectly owned by ICE or by Subsidiaries that
guarantee, and the equity interests in which are pledged to secure, the Spanish
Obligations, in each case on terms and under documentation reasonably
satisfactory to the Facility Agent.

 

SECTION 6.04. Investments,
Loans, Advances, Guarantees and Acquisitions. The Company will not, and
will not permit any of the 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 Equity Interests in or 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 assets of any
other Person constituting a business unit (whether through purchase of assets,
merger or otherwise) (all the foregoing being collectively called “Investments”),
except:

 

(a)
Permitted Investments;

 

(b)
Investments existing on the date hereof and set forth on Schedule 6.04;

 

(c)
Investments by the Company and the Subsidiaries in Equity Interests in their
respective Subsidiaries (that are Subsidiaries prior to such investment);

 

(d)
Investments consisting of loans or advances made by the Company to any
Subsidiary or made by any Subsidiary to the Company or any other Subsidiary; provided
that (i) Walden University, Inc. shall not make any loans or advances to any
Subsidiary and (ii) any loans or advances made by the Company, any US
Subsidiary that is a Credit Party (other than loans and advances made by Walden
University, Inc. to the Company) or ICE shall be evidenced by a

 

77

 

promissory note pledged
pursuant to the applicable Credit Support Document to secure the Obligations or
the Spanish Obligations, as the case may be;

 

(e)
Investments consisting of Guarantees by the Company or any US Subsidiary (other
than Walden University, Inc.) of Indebtedness of the Company or any other US
Subsidiary, or Guarantees by any Foreign Subsidiary of Indebtedness of any
other Foreign Subsidiary; provided that (i) no Subsidiary shall
Guarantee Indebtedness of the Company unless such Subsidiary is a Credit Party
that has Guaranteed the Obligations and (ii) no Subsidiary shall Guarantee
Indebtedness of ICE unless such Subsidiary is a Credit Party that has
Guaranteed the Spanish Obligations;

 

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

 

(g)
Permitted Acquisitions;

 

(h)
Investments arising from the creation, holding or sale of Chilean Student Loans
made by UDLA and UNAB in the ordinary course of business;

 

(i)
Investments arising from the creation or holding of Title IV Student Loans made
by a Subsidiary in the ordinary course of business; and

 

(j)
Other Investments in an amount (i) not greater than US$20,000,000 for any
single Investment or group of related Investments and (ii) not greater than
US$80,000,000 in the aggregate for all such Investments made after the Closing
Date.

 

SECTION 6.05. Asset
Transfers. (a) The Company will not, and will not permit any Subsidiary to,
sell, transfer, lease or otherwise dispose of any asset, including any Equity
Interest owned by it, nor will the Company permit any Subsidiary to issue any
additional Equity Interest in such Subsidiary (other than to the Company or
another Subsidiary), except:

 

(i)
sales of inventory, used or surplus equipment and Permitted Investments in the
ordinary course of business;

 

(ii)
sales, transfers and dispositions of assets (other than assets of Walden
University, Inc. or ICE) to the Company or a Subsidiary;

 

(iii)
transfers to the Intercompany Debt Holding Company of Indebtedness or accounts
receivable of the Company or any Subsidiary that are owed by the Company or any
other Subsidiary;

 

(iv)
Restricted Payments permitted under Section 6.07;

 

78

 

(v)
sales of Chilean Student Loans in Chilean Student Loan Securitization
Transactions;

 

(vi)
sales of Title IV Student Loans permitted under Section 6.02(vii) and Section
6.02(viii);

 

(vii)
other sales, transfers and other dispositions of assets that are not permitted
by any other clause of this Section; provided that the aggregate fair
market value of all assets sold, transferred or otherwise disposed of in
reliance upon this clause (vii) shall not exceed during any fiscal year of the
Company the greater of US$20,000,000 and 1% of Consolidated Tangible Assets as
of the end of the most recent fiscal year and all sales, transfers and other
dispositions permitted by this clause (vii) shall be made for fair value.

 

(b) 
Notwithstanding any provision of paragraph (a) above, the Company will
not, and will not permit any Subsidiary to, sell, transfer, lease or otherwise dispose
of

 

(i)
any Equity Interests in Walden University, Inc.;

 

(ii)
any Equity Interests in ICE;

 

(iii)
any Equity Interests in any US Subsidiary to any Foreign Subsidiary; or

 

(iv)
the Pledged Walden Trademarks or any interest therein.

 

SECTION 6.06. Hedging
Agreements. The Company will not, and will not permit any Subsidiary to,
enter into any Hedging Agreement, except (a) Hedging Agreements entered into to
hedge or mitigate risks (including currency risks) to which the Company or any
Subsidiary has actual exposure and not for speculative purposes, and
(b) Hedging 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 6.07. Restricted
Payments; Certain Payments of Indebtedness. (a) The Company will not, and
will not permit any Subsidiary to, declare or make, or agree to pay or make,
directly or indirectly, any Restricted Payment, or incur any obligation
(contingent or otherwise) to do so, except that (i) the Company may declare and
pay dividends with respect to its Equity Interests payable solely in additional
Equity Interests otherwise permitted hereunder, (ii) Subsidiaries may declare
and pay dividends ratably with respect to their Equity Interests and (iii) the
Company may make Restricted Payments in an aggregate amount during the term of
this Agreement not greater than US$25,000,000.

 

(b) The Company will not, and will not permit any
Subsidiary to, make or agree to pay or make, directly or indirectly, any
payment or other distribution (whether in cash, securities or other property)
of or in respect of principal of or interest on any

 

79

 

Indebtedness, or
any payment or other distribution (whether in cash, securities or other
property), including any sinking fund or similar deposit, on account of the
purchase, redemption, retirement, acquisition, cancelation, termination or
defeasance of any Indebtedness, except:

 

(i)
payments in respect of Indebtedness created under the Loan Documents;

 

(ii)
regularly scheduled interest and principal payments as and when due in respect
of any Indebtedness, other than payments in respect of any Indebtedness
subordinated to the Obligations or any of them to the extent prohibited by the
subordination provisions thereof;

 

(iii)
refinancings of Indebtedness with the proceeds of Permitted Refinancing Indebtedness;

 

(iv)  prepayments of Seller Notes and repurchases
or redemptions of Preferred Stock issued pursuant to clause (iv) of Section
6.01(a); and

 

(v)
any payment of secured Indebtedness that becomes due as a result of the
voluntary sale or transfer of the property or assets securing such
Indebtedness.

 

SECTION 6.08. Transactions
with Affiliates. The Company will not, and will not permit any Subsidiary
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 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 the Subsidiaries,
(c) Restricted Payments permitted by Section 6.07 and (d) Investments permitted
under Section 6.04 in Persons Controlled by the Company that are not
Subsidiaries.

 

SECTION 6.09. Restrictive
Agreements. The Company will not, and will not permit any Subsidiary to,
directly or indirectly, enter into, incur or permit to exist any agreement or
arrangement that prohibits, restricts or imposes any condition upon (a) the
ability of the Borrower 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 of its
Equity Interests or to make or repay loans or advances to the Borrower or any
other Subsidiary or to Guarantee Indebtedness of the Borrower or any other
Subsidiary; provided that (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 restrictions and conditions existing on the date
hereof identified on Schedule 6.09 (but shall apply to any amendment or
modification expanding the scope of any such restriction or condition), (iii)
the foregoing shall not apply to restrictions contained in Seller Notes or in
the organizational documents of or any shareholder or similar agreements with
respect to any Subsidiary in which minority Equity Interests are owned by
Persons other than the Company and the Subsidiaries; provided, that such
restrictions

 

80

 

relate only to such Subsidiary, (iv) 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, (v) 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 (vi) clause
(a) of the foregoing shall not apply to customary provisions in leases and
other contracts restricting the assignment thereof.

 

SECTION 6.10. Capital
Expenditures. The Company will not, and will not permit any Subsidiary to
make any Capital Expenditures (other than maintenance Capital Expenditures and
Capital Expenditures that the Company or a Subsidiary is committed under any
contract to make) if a payment Default or a Default under Section 6.11 or 6.12
has occurred and is continuing or would arise as a result thereof.

 

SECTION 6.11. Net
Leverage Ratio. The Borrowers will not permit the Net Leverage Ratio as of
any date during any period set forth below to exceed the ratio set forth
opposite such period:

 

	
  Period

  	
   

  	
  Ratio

  	
   

  
	
  Prior to March 31, 2007

  	
   

  	
  3.50 to 1.00

  	
   

  
	
  On and after March 31, 2007

  	
   

  	
  3.25 to 1.00

  	
   

  

 

;
provided, that if the Company shall have received, in one or more
transactions after the Closing Date, at least US$150,000,000 of aggregate gross
cash proceeds from the issuance and sale of Permitted Unsecured Notes and/or
Permitted Subordinated Notes, then the Net Leverage Ratio required to be
maintained on and after March 31, 2007, shall be 3.50 to 1.00.

 

SECTION 6.12. Interest
Expense Coverage Ratio. The Borrowers will not permit the ratio of (a)
Consolidated Adjusted EBITDA to (b) Consolidated Interest Expense for any period
of four consecutive fiscal quarters ending after the Closing Date to be less
than 3.50 to 1.00.

 

SECTION 6.13. Walden
Trademarks. The Company will not, and will not permit any Subsidiary (other
than Walden University, Inc.) to, own any right, title or interest that
constitutes a Pledged Walden Trademark.

 

SECTION 6.14. Business of
Subsidiaries. The Company will not permit Laureate Education International
Ltd., FSIUH Holding Company, Fleet Street IU USA, Fleet Street IU Netherlands
or Rede Internacional de Universidades Laureate, Ltda. (a) to engage in any
business activities (including pledging or transferring Equity Interests owned
by such Subsidiaries) other than ownership of the Equity Interests owned by
such Subsidiaries as of the US Tranche Effective Date, activities incidental
thereto and pledges of such Equity Interests under the Loan Documents, (b) to
incur any Indebtedness or liabilities, including any Guarantee of Indebtedness
of the Company, other than (i) Indebtedness under the Loan Documents, (ii)
Indebtedness to the Company or any 

 

81

 

Subsidiary permitted under this Agreement and (iii) other liabilities
not constituting Indebtedness incidental to the ownership of the Equity
Interests referred to in the preceding clause (a). The Company will not permit
the Intercompany Debt Holding Company to engage in any business or activity
other than receiving and holding Indebtedness and accounts receivable
transferred to it pursuant to Section 6.05(a)(iii) and activities incidental to
the maintenance of its existence, and will not incur any Indebtedness or other
obligation other than Indebtedness under the Loan Documents and obligations not
constituting Indebtedness incidental to the activities permitted by this
sentence.

 

ARTICLE VII

Events of Default

 

If
any of the following events (any such event being called an “Event of
Default”) shall occur:

 

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

 

(c)
any representation, warranty or statement made or deemed made by or on behalf
of the Company or any Subsidiary in any Loan Document or any amendment or
modification thereof or waiver thereunder, or in any report, certificate, financial
statement or other document furnished pursuant to or in connection with any
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)
The Company or any Subsidiary shall fail to observe or perform any covenant,
condition or agreement contained in Section 5.02, 5.04 (with respect to
the existence of either Borrower) or 5.10 or in Article VI;

 

(e)
any Credit Party shall fail to observe or perform any covenant, condition or
agreement contained in any Loan Document (other than those specified in
paragraphs (a), (b) and (d) of this Article), and such failure shall continue
unremedied for a period of 30 days after the earlier of (i) notice thereof
from any Lender or Agent to the Company and (ii) the date on which the
Company has actual knowledge of such failure;

 

82

 

(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 (after giving
effect to any applicable grace periods);

 

(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 paragraph (g) shall not
apply to secured Indebtedness that becomes due as a result of the sale, transfer
or other disposition (including as a result of a casualty or condemnation
event) of the property or assets securing such Indebtedness (to the extent such
sale, transfer or other disposition is not prohibited under this Agreement);

 

(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 Credit Party or 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 Credit Party or 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;

 

(i)
any Credit Party or 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 paragraph (h) of this Article, (iii) apply for
or consent to the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for such Credit Party or 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 Credit Party or 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 in an aggregate amount in excess of US$15,000,000 shall
be rendered against the Company, any Subsidiary or any combination thereof and
the same shall remain undischarged for a period of 30 consecutive days during
which execution shall not be effectively stayed, or any action shall be legally
taken by a judgment creditor to attach or levy upon any

 

83

 

assets of the Company or any
Subsidiary to enforce any such judgment; provided, that a judgment
against a Foreign Subsidiary that is not a Material Subsidiary, and the
operations of which the Company has determined to discontinue, shall not
constitute an Event of Default hereunder if and for so long as none of (i) the
Company, (ii) any Material Subsidiary or (iii) any Subsidiaries that on a
combined basis would constitute a Material Subsidiary shall be liable for 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)
any Lien purported to be created under any Credit Support Document shall cease
to be, or shall be asserted by any Credit Party not to be, a valid and
perfected Lien on any material portion of the Collateral, with the priority
required by the applicable Credit Support Document, except (i) as a result of
the sale or other disposition of the applicable Collateral in a transaction
permitted under the Loan Documents or (ii) as a result of the Collateral
Agent’s failure to (A) maintain possession of any stock certificates,
promissory notes or other instruments delivered to it under the US Guarantee
and Collateral Agreement or (B) file Uniform Commercial Code continuation
statements;

 

(n)
any Loan Document or any Guarantee of the Obligations (including the Guarantee
contained in Article X of this Agreement) shall cease to be in full force and
effect (in each case, other than in accordance with the terms of the Loan
Documents) or shall for any reason be asserted by any Credit Party not to be a
legal, valid and binding obligation of any Credit Party party thereto; or

 

(o)
a Change in Control shall occur;

 

then,
and in every such event (other than an event with respect to either Borrower
described in paragraph (h) or (i) of this Article), and at any time
thereafter during the continuance of such event, the Facility 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, 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 either Borrower described in paragraph (h) or (i) of this
Article, the Commitments shall automatically terminate and the principal of the
Loans then outstanding, together with accrued interest thereon and all fees and
other obligations of the Borrowers accrued hereunder, shall automatically become
due and payable, without

 

84

 

presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the Borrowers.

 

ARTICLE VIII

The Agents

 

Each
of the Lenders and the Issuing Bank hereby irrevocably appoints the Agents as
its agents and authorizes the Agents to take such actions on its behalf and to
exercise such powers as are delegated to the Agents by the terms of the Loan
Documents, together with such actions and powers as are reasonably incidental
thereto.

 

Any
Person serving as an 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 an Agent, and such Person and its Affiliates may accept
deposits from, lend money to and generally engage in any kind of business with
the Company or any Subsidiary or other Affiliate thereof as if it were not an
Agent hereunder.

 

The
Agents 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 Agents shall not be subject to any fiduciary or other implied
duties, regardless of whether a Default has occurred and is continuing,
(b) the Agents 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 Agents are 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 11.02) and (c) except as expressly set forth in the Loan
Documents, the Agents 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 the Subsidiaries that is communicated to or obtained by them or any of
their Affiliates in any capacity. The Agents shall not be liable for any action
taken or not taken by them 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 11.02) or in the
absence of their own gross negligence or wilful misconduct. Each Agent shall be
deemed not to have knowledge of any Default unless and until written notice
thereof is given to such Agent by the Company or a Lender, and the Agents 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 thereunder or in connection therewith, (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 such Agent.

 

Each
Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument,

 

85

 

document
or other writing believed by it to be genuine and to have been signed or sent
by the proper Person. Each 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. Each 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.

 

Each
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 it. Each Agent and any such
sub-agent may perform any and all its duties and exercise its rights and powers
through its respective Related Parties. The exculpatory provisions of the
preceding paragraphs and the provisions of Section 11.03 shall apply to any
such sub-agent and to the Related Parties of each 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 Agent.

 

Subject
to the appointment and acceptance of a successor Agent as provided in this
paragraph, each Agent may resign at any time by notifying the other Agents, the
Lenders, the Issuing Bank and the Company. Upon any such resignation, the
Required Lenders (in the case of a resignation by the Facility Agent) or the
Facility Agent (in the case of a resignation by any other Agent) shall have the
right, in consultation with the Company, to appoint a successor. If no
successor Agent shall have been so appointed and shall have accepted such
appointment within 30 days after the retiring Agent gives notice of its
resignation, then the retiring Agent may, on behalf of the Lenders and the
Issuing Bank, appoint a successor 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 Agent hereunder by a successor, such successor shall succeed
to and become vested with all the rights, powers, privileges and duties of the
retiring Agent, and the retiring Agent shall be discharged from its duties and
obligations hereunder. The fees payable by the Company to a successor Agent
shall be the same as those payable to its predecessor unless otherwise agreed
between the Company and such successor. After an Agent’s resignation hereunder,
the provisions of this Article and Section 11.03 shall continue in effect
for the benefit of such retiring 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 Agent.

 

Each
Lender acknowledges that it has, independently and without reliance upon any
Agent or any other Lender and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into
this Agreement. Each Lender also acknowledges that it will, independently and
without reliance upon any Agent or any other Lender and based on such documents
and information 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 other Loan Document or any related agreement or any document
furnished hereunder or thereunder.

 

86

 

The
parties agree that none of the Lead Arranger and Bookrunner, the   Co-Syndication Agents or the
Co-Documentation Agents referred to on the cover page shall have any powers,
duties or responsibilities under this Agreement or any other Loan Document,
except in its capacity, as applicable, as an Agent, a Lender, the Issuing Bank
or the Swingline Lender hereunder.

 

ARTICLE IX

Collection Allocation Mechanism

 

On
the CAM Exchange Date, (a) the Commitments shall automatically and without
further act be terminated as provided in Article VII and (b) the Lenders
shall automatically and without further act be deemed to have made reciprocal
purchases of interests in the Specified Obligations such that, in lieu of the
interests of each Lender in the particular Specified Obligations that it shall
own as of such date and prior to the CAM Exchange, such Lender shall own an
interest equal to such Lender’s CAM Percentage in each Specified Obligation.
Each Lender, each person acquiring a participation from any Lender as
contemplated by Section 11.04 and each Borrower hereby consents and agrees to
the CAM Exchange. Each Borrower and each Lender agrees from time to time to
execute and deliver to the Agents all such promissory notes and other
instruments and documents as the Facility Agent shall reasonably request to
evidence and confirm the respective interests and obligations of the Lenders
after giving effect to the CAM Exchange, and each Lender agrees to surrender
any promissory notes originally received by it hereunder to the Facility Agent
against delivery of any promissory notes so executed and delivered; provided
that the failure of or any Borrower to execute or deliver or of any Lender to
accept any such promissory note, instrument or document shall not affect the
validity or effectiveness of the CAM Exchange.

 

As
a result of the CAM Exchange, on and after the CAM Exchange Date, each payment
received by an Agent pursuant to any Loan Document in respect of any Specified
Obligations shall be distributed to the Lenders pro rata in accordance with
their respective CAM Percentages (to be redetermined as of each such date of
payment or distribution to the extent required by the next paragraph).

 

In
the event that, on or after the CAM Exchange Date, the aggregate amount of the
Specified Obligations shall change as a result of the making by the Issuing
Bank of an LC Disbursement that is not reimbursed by the applicable Borrower,
then (a) the applicable Lenders shall, in accordance with Section 2.05(d),
promptly purchase from the Issuing Bank a participation in such LC Disbursement
in the amount of such Lender’s applicable Tranche Percentage of such LC
Disbursement (without giving effect to the CAM Exchange), (b) the Facility
Agent shall redetermine the CAM Percentages after giving effect to such LC
Disbursement and the purchase of participations therein by the applicable
Lenders, and the Lenders shall automatically and without further act be deemed
to have made reciprocal purchases of interests in the Specified Obligations
such that each Lender shall own an interest equal to such Lender’s CAM
Percentage in each of the Specified Obligations and (c) in the event
distributions shall have been made in accordance with the preceding paragraph,
the Lenders shall make such payments to one

 

87

 

another
as shall be necessary in order that the amounts received by them shall be equal
to the amounts they would have received had each LC Disbursement been
outstanding on the CAM Exchange Date. Each such redetermination shall be
binding on each of the Lenders and their successors and assigns and shall be
conclusive, absent manifest error.

 

ARTICLE X

Guarantee

 

In
order to induce the Lenders to extend credit to ICE hereunder, the Company 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 ICE. The Company
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
from it, and that it will remain bound upon its guarantee hereunder
notwithstanding any such extension or renewal of any such Obligation.

 

The
Company waives presentment to, demand of payment from and protest to ICE of any
of the Obligations, and also waives notice of acceptance of its obligations and
notice of protest for nonpayment. The obligations of the Company hereunder
shall not be affected by (a) the failure of any Agent or Lender to assert
any claim or demand or to enforce any right or remedy against any Credit Party
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, wilful or otherwise, in the performance
of any of the Obligations or (e) 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 the Company 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 the Company to
subrogation.

 

The
Company 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 any Agent or Lender to any balance of any
deposit account or credit on the books of any Agent or Lender in favor of ICE
or any other Person.

 

The
obligations of the Company hereunder shall not be subject to any reduction,
limitation, impairment or termination for any reason (other than the
indefeasible payment in full of all the Obligations), 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 (other than for the indefeasible payment in full of all the
Obligations).

 

88

 

The
Company 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 is rescinded or must otherwise be restored by
any Agent or Lender upon the bankruptcy or reorganization of ICE or otherwise.

 

In
furtherance of the foregoing and not in limitation of any other right which any
Agent or Lender may have at law or in equity against the Company by virtue
hereof, upon the failure of ICE to pay any Obligation when and as the same
shall become due, whether at maturity, by acceleration, after notice of
prepayment or otherwise, the Company hereby promises to and will, upon receipt
of written demand by any Agent or Lender, forthwith pay, or cause to be paid,
to the applicable Agent or Lender in cash an amount equal to the unpaid
principal amount of such Obligation then due, together with accrued and
unpaid interest thereon. The Company further agrees that if payment in respect
of any Obligation shall be due in a currency other than US Dollars and/or at a
place of payment other than New York 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 any
Agent or Lender, not consistent with the protection of its rights or interests,
then, at the election of the Facility Agent, the Company shall make payment of
such Obligation in US Dollars (based upon the applicable Exchange Rate in
effect on the date of payment) and/or in New York, and shall indemnify
each Agent and Lender against any losses or reasonable out-of-pocket expenses
that it shall sustain as a result of such alternative payment.

 

Upon
payment by the Company of any sums as provided above, all rights of the Company
against ICE 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 of all the Obligations owed by ICE to
the Agents, the Issuing Bank and the Lenders.

 

Nothing
shall discharge or satisfy the liability of the Company hereunder except the
full performance and payment of the Obligations.

 

ARTICLE XI

Miscellaneous

 

SECTION 11.01. 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 the Company, to it at Laureate Education, Inc., 1001 Fleet Street,
Baltimore, MD 21202, Attention of Ms. Rosemarie Mecca, Executive Vice President
and Chief Financial Officer (Telecopy No. (410) 843-8093);

 

89

 

(ii)
if to ICE, to it in care of the Company;

 

(iii)
if to the Facility Agent, the Issuing Bank or the Swingline Lender, to JPMorgan
Chase Bank, N.A., Loan and Agency Services Group, 10 South Dearborn, 19th
Floor, Chicago, Illinois 60603-2003, Attention of Mi Y Kim (Telecopy No. (312)
385-7098), with a copy to JPMorgan Chase Bank, N.A., 395 N. Service Road, Suite
302, Melville, New York 11747, Attention of John Budzynski (Telecopy No. (631)
755-5184);

 

(iv)
if to the London Agent, to J. P. Morgan Europe Limited, 125 London Wall, London
EC2Y 5AJ, Attention of Agency Department (Telecopy No. 44-207-777-2360), with a
copy to the Facility Agent as provided under clause (ii) above; 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 Facility
Agent; provided that the foregoing shall not apply to notices pursuant
to Article II unless otherwise agreed by the Facility Agent and the applicable
Lender. Each 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.

 

SECTION 11.02. Waivers;
Amendments. (a)  No failure or delay
by any Agent, the 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 Agents, the Issuing Bank and the
Lenders hereunder and under the other Loan Documents are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver
of any provision of any Loan Document or consent to any departure by any Credit
Party 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 any Agent, any Lender or the Issuing Bank
may have had notice or knowledge of such Default at the time.

 

90

 

(b)  None of
this Agreement, any other Loan Document or any provision hereof or thereof may
be waived, amended or modified except, in the case of this Agreement, pursuant
to an agreement or agreements in writing entered into by the Borrowers and the
Required Lenders or, in the case of any other Loan Document, pursuant to an
agreement or agreements in writing entered into by the Facility Agent and each
Credit Party that is a party thereto, in each case with the consent of the
Required Lenders; provided that no such agreement shall
(i) increase any 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 affected thereby,
(iii) postpone the maturity of any Loan, or the required date of
reimbursement of any LC Disbursement, or any date for the payment of any
interest or 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 affected thereby,
(iv) change Sections 2.17(b), 2.17(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 percentage
set forth in the definition of “Required Lenders” or any other provision
of any Loan Document specifying the number or percentage of Lenders required to
waive, amend or modify any rights thereunder or make any determination or grant
any consent thereunder, without the written consent of each Lender,
(vi) release all or substantially all the Subsidiary Credit Parties from
their obligations under the US Guarantee and Collateral Agreement or any other
guarantee agreements constituting Credit Support Documents (except as expressly
provided in Section 11.15), or limit their liability in respect of such
obligations, without the written consent of each Lender, (vii) release all or
substantially all the Collateral from the Liens of the Credit Support Documents
without the written consent of each Lender, (viii) change any provisions
of Article IX without the written consent of each Lender or (ix) change any
provision of any Loan Document in a manner that by its terms adversely affects
the rights in respect of payments due to Lenders under one Tranche differently
than those under any other Tranche, without the written consent of Lenders holding
a majority in interest of the outstanding Commitments and Revolving Exposure
under each affected Tranche; provided further that (A) no such
agreement shall amend, modify or otherwise affect the rights or duties of any
Agent, the Issuing Bank or the Swingline Lender without the prior written
consent of such Agent, the Issuing Bank or the Swingline Lender, as the case
may be and (B) any waiver, amendment or modification of this Agreement
that by its terms affects the rights or duties under this Agreement of the US
Tranche Lenders (but not the Spanish Tranche Lenders), or the Spanish Tranche
Lenders (but not the US Tranche Lenders) may be effected by an agreement or
agreements in writing entered into by the Borrowers and the requisite
percentage in interest of the affected Lenders under the applicable Tranche.
Notwithstanding the foregoing, any provision of this Agreement may be amended
by an agreement in writing entered into by the Borrowers, the Facility Agent
(and, if their rights or obligations are affected thereby, the Issuing Bank and
the Swingline Lender) and the Lenders that will remain parties hereto after
giving effect to such amendment if (i) by the terms of such agreement the
Commitments of each Lender not consenting to the amendment provided for therein
shall terminate upon the effectiveness of such amendment and (ii) at the time

 

91

 

such amendment
becomes effective, each Lender not consenting thereto receives payment in full
of the principal of and interest accrued on each Loan made by it and all other
amounts owing to it or accrued for its account under this Agreement.

 

SECTION 11.03. Expenses;
Indemnity; Damage Waiver. (a)  The
Company shall pay (i) all reasonable out-of-pocket expenses incurred by
the Agents and their Affiliates, including the reasonable fees, charges and
disbursements of counsel for the Agents, in connection with the syndication of
the credit facilities provided for herein, the preparation, execution, delivery
and administration of the Loan Documents or any amendments, modifications or
waivers of the provisions thereof (whether or not the transactions contemplated
hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket
expenses incurred by the 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
Agents, the Issuing Bank or any Lender, including the fees, charges and disbursements
of any counsel for the Agents, the Issuing Bank or any Lender, in connection
with the enforcement or protection of its rights in connection with the Loan
Documents, 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 Agents, the 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 syndication of the credit facilities provided for
herein, the preparation, execution, delivery or administration of the Loan
Documents or any agreement or instrument contemplated thereby, the performance
by the parties thereto of their respective obligations thereunder or the
consummation of the Transactions or any other transactions contemplated thereby,
(ii) any Loan or Letter of Credit or the use of the proceeds therefrom
(including any refusal by the 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 currently or formerly owned or operated by the Company or any of the
Subsidiaries, or any Environmental Liability related in any way to the Company
or any of the 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 and regardless of whether
any Indemnitee is a party thereto and regardless of whether such matter is
initiated by a third party or by the Company or any Affiliate thereof; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or wilful misconduct of
such Indemnitee.

 

92

 

(c)  To
the extent that the Company fails to pay any amount required to be paid by it
to any Agent, the Issuing Bank or the Swingline Lender under paragraph (a) or
(b) of this Section, each Lender severally agrees to pay to such Agent,
the Issuing Bank or the Swingline Lender, as the case may be, such Lender’s
pro rata share (determined as of the time that the applicable unreimbursed
expense or indemnity payment is sought) of such unpaid amount; provided
that the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against such
Agent, the Issuing Bank or the Swingline Lender in its capacity as such. For
purposes hereof, a Lender’s “pro rata share” shall be determined based
upon its share of the aggregate amount of Revolving Exposures and unused
Commitments at the time (or, if there shall be no Revolving Exposures or unused
Commitments, based upon its share of the unused Commitments most recently in
effect at the time).

 

(d)  To
the extent permitted by applicable law, the Company shall not assert, and
hereby waives, any claim against any Indemnitee, on any theory of liability,
for special, indirect, consequential or punitive damages (as opposed to direct
or actual damages) arising out of, in connection with or as a result of this
Agreement or any agreement or instrument contemplated hereby, the Transactions,
any Loan or any Letter of Credit or the use of the proceeds thereof.

 

(e)  All
amounts due under this Section shall be payable not later than 10 days
after written demand therefor.

 

SECTION 11.04.
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 Issuing Bank that issues any Letter of Credit), except that (i) no Credit
Party may assign or otherwise transfer any of its rights or obligations
hereunder or under any other Loan Document without the prior written consent of
each Lender (and any attempted assignment or transfer by a Credit Party 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 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 Agents, the Issuing
Bank 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 Commitments and the Loans at
the time owing to it) with the prior written consent (such consent not to be
unreasonably withheld) of:

 

(A) the Company; provided that no
consent of the Company shall be required for an assignment to a Lender, an
Affiliate of a Lender, an

 

93

 

Approved Fund or, if a Default has occurred and is continuing, any
other assignee; and

 

(B) the Facility Agent; and

 

(C) the Issuing Bank.

 

(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 Commitments, the amount
of the Commitments 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 Facility Agent) shall not be less than US$5,000,000
unless each of the Company and the Facility Agent otherwise consents; provided
that no such consent of the Company shall be required if a 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;

 

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

 

(D) the assignee, if it shall not be a
Lender, shall deliver to the Facility 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 the Subsidiaries and its and their Related
Parties or 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, the term “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 Lender, an Affiliate
of a Lender or an entity or an Affiliate of an entity that administers or
manages a Lender.

 

(iii) Subject to acceptance and
recording thereof pursuant to paragraph (b)(iv) 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

 

94

 

Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.14, 2.15, 2.16, 2.19 and 11.03). Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does
not comply with this Section 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 Facility Agent, acting for this
purpose as an agent of the Borrowers, shall maintain at one of its offices a
copy of each Assignment and Assumption delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitments of,
and principal amount of the Loans and 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 Facility
Agent, the Issuing Bank and the Lenders may treat each Person whose name
is recorded in the Register pursuant to the terms hereof as a Lender hereunder
for all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by each Borrower, the 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 consent to such assignment
required by paragraph (b) of this Section, the Facility Agent shall record
the information contained in such Assignment and Assumption in the Register. No
assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this paragraph.

 

(c)  (i) Any
Lender may, without the consent of, or notice to, either Borrower, the Facility
Agent, the Issuing Bank or the Swingline Lender, sell participations to one or
more banks or other entities (each a “Participant”) in all or a portion
of such Lender’s rights and obligations under this Agreement (including all or
a portion of its Commitments and the Loans owing to it); provided that (A) such
Lender’s obligations under this Agreement shall remain unchanged, (B) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (C) the Borrowers, the Facility Agent,
the Issuing Bank and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and
obligations under the Loan Documents. 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 the Loan Documents and to approve any amendment,
modification or waiver of any provision of the Loan Documents; provided
that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant,

 

95

 

agree to any amendment,
modification or waiver described in the first proviso to Section 11.02(b) that
affects such Participant. Subject to paragraph (c)(ii) of this Section,
the Company agrees that each Participant shall be entitled to the benefits of
Sections 2.14, 2.15, 2.16 and 2.19 to the same extent as if it were a Lender
and had acquired its interest by assignment pursuant to paragraph (b) of
this Section. To the extent permitted by law, each Participant also shall be
entitled to the benefits of Section 11.08 as though it were a Lender; provided
such Participant agrees to be subject to Section 2.17(c) as though it
were a Lender.

 

(ii) A
Participant shall not be entitled to receive any greater payment under Section 2.14,
2.16 or 2.19 than the applicable Lender would have been entitled to receive
with respect to the participation sold to such Participant, unless the sale of
the participation to such Participant is made with the Company’s prior written
consent. A Participant shall not be entitled to the benefits of Section 2.16
unless such Participant agrees, for the benefit of the Company, to comply with Section 2.16(e) as
though it were a Lender.

 

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

 

SECTION 11.05.
Survival. All covenants, agreements, representations and warranties made
by the Borrowers or the Credit Parties herein, in the other 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 any Agent, the
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 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 2.14, 2.15, 2.16, 2.19 and 11.03 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 provision hereof.

 

SECTION 11.06.
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

 

96

 

and any separate letter
agreements with respect to fees payable to the Agents or the Issuing Bank 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 Facility
Agent and when the Facility 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 or other electronic transmission shall be effective as delivery of a
manually executed counterpart of this Agreement.

 

SECTION 11.07.
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 of such Loan Document; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

 

SECTION 11.08.
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) 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 either Borrower
against any of and all the obligations of such Borrower now or hereafter
existing under this Agreement held by such Lender, irrespective of whether or
not such Lender shall have made any demand under this Agreement and although such
obligations may be unmatured. The rights of each Lender under this Section are
in addition to and shall not limit other rights and remedies (including other
rights of setoff) which such Lender may have.

 

SECTION 11.09.
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
party hereto 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 and of the United States District
Court of 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 any
Agent, the Issuing Bank or any

 

97

 

Lender may otherwise have
to bring any action or proceeding relating to this Agreement or any other Loan
Document against any Credit Party or its properties in the courts of any
jurisdiction.

 

(c)  Each
party hereto 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 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 11.01. Nothing in this Agreement or
any other Loan Document will affect the right of any party hereto or thereto to
serve process in any other manner permitted by law.

 

SECTION 11.10.
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 11.11.
Notarization. If any of the Lenders at any time
request that the Facility Agent instruct the Borrowers to raise this Agreement
to the status of public document before a Spanish notary public, the Facility
Agent shall promptly send a notice (a “Notarization Notice”) to the
Borrowers and, unless the Borrowers receive a notice from the Facility Agent
withdrawing such Notarization Notice by the tenth Business Day after delivery
thereof (such date, the “Notarization Notice Effective Date”), then the
Borrowers hereby expressly agree and undertake (a) to appear, within
fifteen days after the Notarization Notice Effective Date, before a Spanish notary
public selected by the Borrowers and (b) to raise this Agreement to the
status of public document. All the costs arising from the notarization of this
Agreement shall be borne by the Borrowers. Each Lender hereby empowers the
Facility Agent to appear before a Spanish notary public for the purpose of
raising this Agreement to the status of public document.

 

SECTION 11.12.
Headings. Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of
this

 

98

 

Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this
Agreement.

 

SECTION 11.13.
Confidentiality. (a)  Each Agent, the Issuing Bank and each Lender
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, (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 the Company 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 any Agent, the
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,
other than any such information that is available to any Agent, the Issuing
Bank or any Lender on a nonconfidential basis prior to disclosure by the Company;
provided that, in the case of information received from the Company
after the Closing Date, such information is clearly identified at the time of
delivery as confidential.

 

(b)  Each
Lender acknowledges that Information furnished to it pursuant to this Agreement
may include material non-public information concerning the Company and its
Related Parties or its or their securities, and confirms that it has developed
compliance procedures regarding the use of material non-public information and
that it will handle such material non-public information in accordance with the
procedures and applicable law, including Federal and State securities laws.

 

(c)  All
Information, including requests for waivers and amendments, furnished by the
Company or the Agents pursuant to, or in the course of administering, this
Agreement will be syndicate-level information, which may contain material
non-public information about the Company and the Subsidiaries and its and their
Related Parties or securities. Accordingly, each Lender represents to the
Company and each Agent that it has identified in its Administrative
Questionnaire a credit contact who may receive information that may contain
material non-public information in accordance with its compliance procedures
and applicable law, including Federal and State securities laws.

 

SECTION 11.14.
Interest Rate Limitation. Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together
with

 

99

 

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 11.15.
Conversion of Currencies. (a)  If, for the purpose of obtaining
judgment in any court, it is necessary to convert a sum owing hereunder in one
currency into another currency, each party hereto agrees, to the fullest extent
that it may effectively do so, that the rate of exchange used shall be
that at which in accordance with normal banking procedures in the relevant
jurisdiction the first currency could be purchased with such other currency on
the Business Day immediately preceding the day on which final judgment is
given.

 

(b)  The
obligations of each party hereto in respect of any sum due to any other party
hereto or any holder of the obligations owing hereunder (the “Applicable
Creditor”) shall, notwithstanding any judgment in a currency (the “Judgment
Currency”) other than the currency in which such sum is stated to be due
hereunder (the “Agreement Currency”), be discharged only to the extent
that, on the Business Day following receipt by the Applicable Creditor of any
sum adjudged to be so due in the Judgment Currency, the Applicable Creditor may in
accordance with normal banking procedures in the relevant jurisdiction purchase
the Agreement Currency with the Judgment Currency; if the amount of the
Agreement Currency so purchased is less than the sum originally due to the
Applicable Creditor in the Agreement Currency, the Company agrees, as a
separate obligation and notwithstanding any such judgment, to indemnify the
Applicable Creditor against such loss. The obligations of each party hereto contained
in this Section shall survive the termination of this Agreement and the
payment of all other amounts owing hereunder.

 

SECTION 11.16.
Release of Subsidiary Credit Parties and Collateral. (a)   Notwithstanding any contrary provision herein
or in any other Loan Document, (i) upon any sale or other transfer by any
Credit Party of any Collateral consisting of inventory or used, surplus,
obsolete or outmoded equipment, the security interest in such Collateral shall
automatically be released and (ii) if the Company shall request the
release under any Credit Support Document of any Subsidiary Credit Party, or
any Collateral, to be sold or otherwise disposed of (including through the sale
or disposition of any Subsidiary owning any such Subsidiary Credit Party or such
Collateral) to a Person other than the Company or a Subsidiary in a transaction
permitted under the terms of this Agreement and shall deliver to the Collateral
Agent a certificate executed by a Financial Officer to the effect that such
sale or other disposition will comply with the terms of this Agreement, then,
if

 

100

 

the Collateral Agent is
satisfied that such certificate is correct, the Collateral Agent shall, without
the consent of any Lender, execute and deliver all such releases or other
agreements or instruments, and take all such further actions, as shall be
necessary to effectuate the release of such Subsidiary Credit Party or such
Collateral substantially simultaneously with or at any time after the
completion of such sale or other disposition. If the Collateral Agent shall not
be satisfied that any certificate delivered pursuant to the preceding sentence
is correct, it shall promptly notify the Company in writing, setting forth the
reason for its failure to be satisfied. Any such release shall be without
recourse to, or representation or warranty by, any Agent and shall not require
the consent of any Lender.

 

(b)  Without
limiting the provisions of Section 11.03, the Borrowers shall reimburse
the Collateral Agent for all costs and expenses, including reasonable fees,
charges and disbursements of counsel, incurred by it in connection with any
action contemplated by this Section.

 

SECTION 11.17.
USA Patriot Act. Each Lender and the Facility Agent (for itself and not
on behalf of any Lender) hereby notifies each of the Credit Parties that pursuant
to the requirements of the Patriot Act, it is required to obtain, verify and
record information that identifies Credit Parties, which information includes
the name and address of such Credit Parties and other information that will
allow such Lender or the Facility Agent, as applicable, to identify such Credit
Parties in accordance with the Patriot Act.

 

SECTION 11.18.
No Fiduciary Duty. Each Borrower, on behalf of itself and the
Subsidiaries, agrees that in connection with all aspects of the transactions
contemplated hereby and any communications in connection therewith, the Borrowers,
the Subsidiaries and their Affiliates, on the one hand, and the Agents, the
Issuing Bank, the Lenders and their Affiliates, on the other hand, will have a
business relationship that does not create, by implication or otherwise, any
fiduciary duty on the part of the Agents, the Issuing Bank, the Lenders or
their Affiliates, and no such duty will be deemed to have arisen in connection
with any such transactions or communications.

 

SECTION 11.19.
Effectiveness. The rights and obligations of ICE hereunder and the
obligations of the Spanish Tranche Lenders to make Spanish Tranche Revolving
Loans and of the Issuing Bank to issue Spanish Tranche Letters of Credit
hereunder shall not become effective until the date on which the conditions set
forth in Section 4.02 are satisfied (or waived in accordance with Section 11.02).

 

[The remainder of this page has
been left blank intentionally.]

 

101

 

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.

 

	
   

  	
  LAUREATE EDUCATION, INC.,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ Robert
  W. Zentz

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert W. Zentz

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  INICIATIVAS CULTURALES DE

  
	
   

  	
  ESPAÑA, SL,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ Robert
  W. Zentz

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert W. Zentz

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Sole Administrator

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A.,

  as Facility Agent, Swingline Lender, Issuing

  Bank and Lender,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ Teri
  Streusand

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Teri Streusand

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  J. P. MORGAN EUROPE LIMITED,

  as London Agent,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ Maxine
  Graves

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Maxine Graves

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Associate

  	
   

  

 

 

Lender signature page to
the

Laureate Education, Inc.
Five-Year Credit Agreement

 

To approve the Credit Agreement:

 

Name of Lender

 

	
  BANK OF AMERICA, N.A.

  	
   

  
	
   

  	
   

  
	
  by

  	
   

  
	
   

  	
  /s/ Mary K.
  Giermek

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Mary K.
  Giermek

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice
  President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  For any Lender require a second signature
  line:

  	
   

  
	
   

  	
   

  
	
  by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

 

Lender signature page to
the

Laureate Education, Inc.
Five-Year Credit Agreement

 

To approve the Credit Agreement:

 

Name of Lender

 

	
  THE BANK OF NOVA SCOTIA

  	
   

  
	
   

  	
   

  
	
  by

  	
   

  
	
   

  	
  /s/ William
  Collins

  	
   

  	
   

  
	
   

  	
  Name:

  	
  William Collins

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Managing Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  For any Lender require a second signature
  line:

  	
   

  
	
   

  	
   

  
	
  by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

Lender signature page to
the

Laureate Education, Inc.
Five-Year Credit Agreement

 

To approve the Credit Agreement:

 

Name of Lender

 

	
  CREDIT SUISSE, CAYMAN ISLANDS

  	
   

  
	
  BRANCH

  	
   

  
	
   

  	
   

  
	
  by

  	
   

  
	
   

  	
  /s/ Vanessa
  Gomez

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Vanessa Gomez

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  For any Lender require a second signature
  line:

  	
   

  
	
   

  	
   

  
	
  by

  
	
   

  	
  /s/ Nupur
  Kumar

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Nupur Kumar

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Associate

  	
   

  	
   

  

 

 

Lender signature page to
the

Laureate Education, Inc.
Five-Year Credit Agreement

 

To approve the Credit Agreement:

 

Name of Lender

 

	
  CREDIT SUISSE INTERNATIONAL

  	
   

  
	
   

  	
   

  
	
  by

  	
   

  
	
   

  	
  /s/ Garrett
  Lynskey

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Garrett Lynskey

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  For any Lender require a second signature
  line:

  	
   

  
	
   

  	
   

  
	
  by

  
	
   

  	
  /s/ Siobhan
  McGrady

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Siobhan
  McGrady

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice
  President

  	
   

  	
   

  

 

 

Lender signature page to
the

Laureate Education, Inc.
Five-Year Credit Agreement

 

To approve the Credit Agreement:

 

Name of Lender

 

	
  HSBC BANK, USA, NATIONAL

  	
   

  
	
  ASSOCIATION

  	
   

  
	
   

  	
   

  
	
  by

  	
   

  
	
   

  	
  /s/ Thomas
  W. Doe

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Thomas W. Doe

  	
   

  	
   

  
	
   

  	
  Title:

  	
  First Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  For any Lender require a second signature
  line:

  	
   

  
	
   

  	
   

  
	
  by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  

 

 

Lender signature page to
the

Laureate Education, Inc.
Five-Year Credit Agreement

 

To approve the Credit Agreement:

 

Name of Lender

 

	
  LASALLE BANK N.A.

  	
   

  
	
   

  	
   

  
	
  by

  	
   

  
	
   

  	
  /s/ Michael
  A. Berent

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Michael A. Berent

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  For any Lender require a second signature
  line:

  	
   

  
	
   

  	
   

  
	
  by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
						

 

 

Lender signature page to
the

Laureate Education, Inc.
Five-Year Credit Agreement

 

To approve the Credit Agreement:

 

Name of Lender

 

	
  M & T BANK

  	
   

  
	
   

  	
   

  
	
  by

  	
   

  
	
   

  	
  /s/ Theodore
  K. Oswald

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Theodore K. Oswald

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  For any Lender require a second signature
  line:

  	
   

  
	
   

  	
   

  
	
  by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
						

 

 

Lender signature page to
the

Laureate Education, Inc.
Five-Year Credit Agreement

 

To approve the Credit Agreement:

 

Name of Lender

 

	
  SCOTIABANK EUROPE PLC

  	
   

  
	
   

  	
   

  
	
  by

  	
   

  
	
   

  	
  /s/ Sarah
  Haynes

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Sarah Haynes

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Associate Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  For any Lender require a second signature
  line:

  	
   

  
	
   

  	
   

  
	
  by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
						

 

 

Lender signature page to
the

Laureate Education, Inc.
Five-Year Credit Agreement

 

To approve the Credit Agreement:

 

Name of Lender

 

	
  SUNTRUST BANK

  	
   

  
	
   

  	
   

  
	
  by

  	
   

  
	
   

  	
  /s/ Van
  Buren Knick II

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Van Buren Knick II

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  For any Lender require a second signature
  line:

  	
   

  
	
   

  	
   

  
	
  by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]