Document:

exhibit10_1.htm

    EXHIBIT
      10.1

     

    

    WAIVER
      AND ELEVENTH AMENDMENT TO CREDIT AGREEMENT

    

    This
      Waiver and Eleventh Amendment to Credit Agreement (this "Amendment") is dated
      as
      of July 26, 2007, and is by and among General Electric Capital Corporation,
      a
      Delaware corporation, individually as a Lender and as Agent and Security Trustee
      for the Lenders, and Analysts International Corporation, a Minnesota corporation
      ("Borrower").

     

    W
      I T N E S S E T H:

     

    WHEREAS,
      pursuant to a certain Credit Agreement dated as of April 11, 2002, by and among
      General Electric Capital Corporation, a Delaware corporation, individually
      as a
      Lender and as Agent and Security Trustee for the Lenders, the other Credit
      Parties signatory from time to time thereto, and Borrower (as amended or
      otherwise modified from time to time, the "Credit Agreement"; capitalized terms
      used herein and not otherwise defined herein shall have the meaning ascribed
      to
      such terms in the Credit Agreement), Agent and Lenders agreed, subject to the
      terms and provisions thereof, to provide certain loans and other financial
      accommodations to Borrower;

     

    WHEREAS,
      Borrower has notified Agent and Lenders that Borrower has incurred surety and
      performance bond reimbursement obligations in excess of $3,000,000 individually,
      and in excess of $10,000,000 in the aggregate, constituting breaches of Sections
      6.3(a)(vi) and Section 6.7(d) of the Credit Agreement and separate Events of
      Default under Section 8.1(b) of the Credit Agreement (collectively, the
      "Existing Events of Default"); and

     

    WHEREAS,
      Borrower has requested that Agent and Requisite Lenders waive the Existing
      Events of Default and amend the Credit Agreement in certain respects, as set
      forth below.

     

    NOW,
      THEREFORE, in consideration of the premises and other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      parties hereto agree as follows:

     

    1.  Waiver.  In
      reliance upon the representations and warranties of Borrower set forth in
      Section 4 below, and subject to the conditions to effectiveness set forth in
      Section 3 below, Agent and Requisite Lenders hereby waive the Existing Events
      of
      Default.  This is a limited waiver and shall not be deemed to
      constitute a waiver of, or consent to, any other future breach of the Credit
      Agreement.

     

    2.  Amendment.  In
      reliance upon the representations and warranties of Borrower set forth in
      Section 4 below, and subject to the conditions to effectiveness set forth in
      Section 3 below, the Credit Agreement is hereby amended as follows:

     

    
      (a)  Section
        6.3(a) of the Credit Agreement is hereby amended by deleting the reference
        therein to "$10,000,000" and inserting a reference to "$30,000,000" in lieu
        thereof.

       

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    (b)  Section
      6.7(d) of the Credit Agreement is hereby amended by (i) deleting the
      reference therein to "$3,000,000" and inserting a reference to "$7,500,000"
      in
      lieu thereof and (ii) deleting the reference therein to "$10,000,000" and
      inserting a reference to "$30,000,000" in lieu thereof.

     

    (c)  Section
      6.14 of the Credit Agreement is hereby amended by (i) deleting the reference
      therein to "and" immediately prior to clause (e) thereof and inserting a
      comma in lieu thereof and (ii) inserting the following new clause (f)
      therein, immediately prior to the end of such Section, which clause (f)
      shall read as follows:

     

    "(f)
      purchases by Borrower of Borrower's outstanding common stock in an aggregate
      amount not to exceed $5,000,000; provided that at the time of any such
      purchase (i) no Event of Default has occurred and is then continuing and (ii)
      Borrowing Availability immediately after giving effect to any such purchase
      is
      not less than $15,000,000; provided, further, that Borrower's
      right to make purchases pursuant to this clause (f) shall be suspended
      over any period commencing on the date that Borrowing Availability is less
      than
      $15,000,000 through and including the date that Borrowing Availability shall
      have exceeded $15,000,000 for ninety (90) consecutive days."

    

    (d)  Clause
      (a) of Annex E to the Credit Agreement is hereby amended by (i)
      deleting the reference therein to "and" immediately prior to clause (iii)
      thereof and inserting a comma in lieu thereof and (ii) inserting the following
      new clause (iv) therein, immediately following clause (iii)
      thereof, which clause (iv) shall read as follows:

     

    "(iv)
      a listing of all surety and/or performance bonds outstanding for the account
      of
      Borrower or any of its Subsidiaries, setting forth with respect to each such
      bond the original face amount thereof and the aggregate amount of Accounts
      collected by Borrower or any of its Subsidiaries with respect to any contractual
      undertakings supported by such bond, together with a listing of all related
      reimbursement agreements or other obligations entered into by Borrower or any
      of
      its Subsidiaries in connection therewith."

    

    (e)  Annex
      G to the Credit Agreement is hereby amended by amending and restating
clause (c) thereof as follows:

     

    "(c)    Minimum
      Fixed Charge Coverage Ratio.  In the event that average daily
      Borrowing Availability for any Fiscal Month (the "Trigger Month") is less than
      $7,000,000, then Borrower and its Subsidiaries shall have on a consolidated
      basis at the end of each Fiscal Month, commencing with the Trigger Month, a
      Fixed Charge Coverage Ratio for the twelve (12) Fiscal Month period then ended
      of not less than 1.0 to 1.0."

    

    3.  Conditions
      Precedent.  The effectiveness of the waivers and amendments
      contemplated hereby is subject to the prior receipt by Agent of each of the
      following documents and agreements, each in form and substance acceptable to
      Agent in its sole discretion:

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (a)  Agent
      shall have received a fully executed copy of this Amendment;

     

    (b)  No
      Default or Event of Default (other than the Existing Events of Default) shall
      have occurred and be continuing; and

     

    (c)  All
      proceedings taken in connection with the transactions contemplated by this
      Amendment and all agreements, documents, instruments and other legal matters
      incident thereto shall be satisfactory to Agent and its legal
      counsel.

     

    4.  Representations
      and Warranties.  To induce Agent to enter into this Amendment, the
      Borrower hereby represents and warrants to Agent that:

     

    (a)  The
      execution, delivery and performance by each Credit Party of this Amendment
      and
      each other agreement and document contemplated hereby are within their corporate
      or limited liability company power, have been duly authorized by all necessary
      corporate or limited liability company action, have received all necessary
      governmental approval (if any shall be required), and do not and will not
      contravene or conflict with any provision of law applicable to any Credit Party,
      the articles of incorporation, articles of organization, by-laws or operating
      agreement of any Credit Party, any order, judgment or decree of any court or
      governmental agency, or any agreement, instrument or document binding upon
      any
      Credit Party or any of their respective properties;

     

    (b)  Each
      of the Credit Agreement, the other Loan Documents, and each other agreement
      and
      document contemplated hereby is the legal, valid and binding obligation of
      the
      applicable Credit Party, enforceable against such Credit Party in accordance
      with their terms, except as such enforceability may be limited by applicable
      bankruptcy, reorganization, moratorium, fraudulent transfer or other similar
      laws affecting creditors' rights generally or by principles governing the
      availability of equitable remedies;

     

    (c)  All
      of the statements contained in Section 3 of the Credit Agreement and in Section
      4 of the Security Agreement are true and correct on the date
      hereof;

     

    (d)  Each
      Credit Party has performed all of its obligations under the Credit Agreement
      and
      the Loan Documents to be performed by it on or before the date hereof and as
      of
      the date hereof, each Credit Party is in compliance with all applicable terms
      and provisions of the Credit Agreement and each of the Loan Documents to be
      observed and performed by it and, except to the extent otherwise waived by
      the
      provisions hereof, no Event of Default or other event which, upon notice or
      lapse of time or both, would constitute an Event of Default, has occurred;
      and

     

    (e)  Set
      forth as Schedule 1 hereto is a listing of all surety and/or performance
      bonds outstanding as of the date hereof for the account of Borrower or any
      of
      its Subsidiaries, setting forth with respect to each such bond the original
      face
      amount thereof and the aggregate amount of Accounts collected by Borrower or
      any
      of its Subsidiaries with respect to any contractual undertakings supported
      by
      such bond, together with a listing of all related reimbursement agreements
      or
      other obligations entered into by Borrower or any of its Subsidiaries in
      connection therewith.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    5.  Collection
      Reserve.  Pursuant to the Loan Documents, Agent established, prior
      to the date hereof, a Collection Reserve in the amount of
      $3,200,000.  The Collection Reserve shall remain in effect until such
      time, if any, that Agent shall have determined, in its reasonable credit
      judgment, to terminate, reduce or otherwise modify such Reserve (without
      limitation of Agent's rights generally to establish and adjust
      Reserves).

     

    6.  Reaffirmation.  Each
      of Medical Concepts Staffing, Inc., a Minnesota corporation ("Medical
      Staffing"), Analysts International Management Services, LLC, a Minnesota limited
      liability company ("AIMS"), Analysts International Business Solution Services,
      LLC, a Minnesota limited liability company ("AIBSS"), Analysts International
      Business Resource Services, LLC, a Minnesota limited liability company ("AIBRS")
      and Analysts International Strategic Sourcing Services, LLC, a Minnesota limited
      liability company ("AISSS"; AIMS, AIBSS, AIBRS and AISSS are collectively the
      "Staffing Subsidiaries" and each a "Staffing Subsidiary") hereby consents to
      Borrower's execution and delivery of this Amendment and agrees to be bound
      hereby.  Medical Staffing hereby affirms that nothing contained herein
      shall modify in any respect whatsoever its obligations under the Loan Documents,
      including, without limitation, its guaranty of the obligations of Borrower
      to
      Agent and Lenders pursuant to the terms of that certain Guaranty, dated as
      of
      April 7, 2003 (the "MCS Guaranty"), executed by Medical Staffing in favor of
      Agent and Lenders and reaffirms that the MCS Guaranty is and shall continue
      to
      remain in full force and effect.  Each Staffing Subsidiary hereby
      affirms that nothing contained herein shall modify in any respect whatsoever
      its
      obligations under the Loan Documents, including, without limitation, its
      guaranty of the obligations of Borrower to Agent and Lenders pursuant to the
      Guaranty, dated December 31, 2003, executed by such Staffing Subsidiary in
      favor
      of Agent and Lenders and reaffirms that such Guaranty is and shall continue
      to
      remain in full force and effect.  Although Medical Staffing and each
      Staffing Subsidiary has been informed of the matters set forth herein and has
      acknowledged and agreed to same, such Person understands that Agent and Lenders
      have no obligation to inform any such Person of such matters in the future
      or to
      seek any such Person's acknowledgment or agreement to future consents or
      waivers, and nothing herein shall create such a duty.

     

    7.  Counterparts.  This
      Amendment may be executed in any number of counterparts and by the different
      parties on separate counterparts, and each such counterpart shall be deemed
      to
      be an original, but all such counterparts shall together constitute but one
      and
      the same Amendment.  Any such counterpart which may be delivered by
      facsimile transmission or electronic portable format (i.e., "pdf") shall be
      deemed the equivalent of an originally signed counterpart and shall be fully
      advisable in any enforcement proceeding regarding this Amendment.

     

    8.  Continued
      Effectiveness.  Except as amended hereby, the Credit Agreement and
      each of the Loan Documents shall continue in full force and effect according
      to
      its terms.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    9.  Costs
      and Expenses. Borrower hereby agrees that all expenses incurred by Agent in
      connection with the preparation, negotiation and closing of the transactions
      contemplated hereby, including, without limitation, reasonable attorneys' fees
      and expenses, shall be part of the Obligations.

     

    10.  Governing
      Law.  This Amendment shall be a contract made under and governed
      by the internal laws of the State of Illinois.

     

    [REMAINDER
      OF PAGE LEFT INTENTIONALLY BLANK]

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, this Amendment has been executed as of the day and year first
      written above.

     

    

    
      	 	
              ANALYSTS
                INTERNATIONAL CORPORATION

            
	 	 
	 	 
	 	
              By___________________________________

            
	 	
              Its
                ___________________________________

            

    

    

     

    
      	 	
              MEDICAL
                CONCEPTS STAFFING, INC.

            
	 	 
	 	 
	 	
              By
                ___________________________________

            
	 	
              Its
                ___________________________________

            

    

    

    

    
      	 	
              ANALYSTS
                INTERNATIONAL MANAGEMENT

            
	 	
              SERVICES,
                LLC

            
	 	 
	 	 
	 	
              By
                ___________________________________

            
	 	
              Its
                ___________________________________

            

    

    

    

    
      	 	
              ANALYSTS
                INTERNATIONAL BUSINESS

            
	 	
              SOLUTION
                SERVICES, LLC

            
	 	 
	 	 
	 	
              By
                ___________________________________

            
	 	
              Its
                ___________________________________

            

    

    

    

    
      	 	
              ANALYSTS
                INTERNATIONAL BUSINESS

            
	 	
              RESOURCE
                SERVICES, LLC

            
	 	 
	 	 
	 	
              By
                ____________________________________

            
	 	
              Its
                ____________________________________

            

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    

    
      	 	
              ANALYSTS
                INTERNATIONAL STRATEGIC

            
	 	
              SOURCING
                SERVICES, LLC

            
	 	 
	 	 
	 	
              By
                ____________________________________

            
	 	
              Its
                ____________________________________

            

    

    

    

    
      	 	
              GENERAL
                ELECTRIC CAPITAL CORPORATION,

            
	 	
              As
                Agent, Security Trustee and Lender

            
	 	 
	 	 
	 	
              By
                _____________________________________

            
	 	
                   An
                Authorized Signatory

            

    

    

    

    
 

    
      
        
        

      

      
        7ex10_1.htm

    Exhibit
      10-1

    

    SECOND
      AMENDMENT

    TO

    AMENDED
      AND RESTATED CREDIT AGREEMENT

    

    

    THIS
      SECOND AMENDMENT
TO AMENDED AND RESTATED
CREDIT AGREEMENT (this
      “Amendment”), dated as of June 29, 2005, is entered into by and among
      HERCULES INCORPORATED, a Delaware corporation (the “Company”), the
      Guarantors signatory hereto, the Lenders signatory hereto, CREDIT SUISSE, CAYMAN
      ISLANDS BRANCH (formerly known as Credit Suisse First Boston, acting through
      its
      Cayman Islands Branch), as Administrative Agent for the Lenders (in such
      capacity, the “Administrative Agent”) and WACHOVIA BANK, NATIONAL
      ASSOCIATION, as Syndication Agent and Issuing Lender (together with the
      Administrative Agent, the “Agents”).

    

    

    RECITALS

    

    A.           The
      Company, the Guarantors, the Lenders and the Agents are party to that certain
      Amended and Restated Credit Agreement dated as of April 8,
      2004 (as amended by that certain First Amendment to Amended and Restated Credit
      Agreement dated as of August 12, 2004, and as further amended, restated,
      modified or supplemented, the “Existing Credit
      Agreement”).  Unless otherwise defined herein or the context
      otherwise requires, terms used in this Amendment, including its preamble and
      recitals, have the meanings provided in the Existing Credit
      Agreement.

    

    B.           The
      Company has requested certain modifications to the Existing Credit
      Agreement.

    

    C.           Such
      modifications require the consent of the Required Lenders and of all of the
      Lenders with a Revolving Commitment (the “Revolving
      Lenders”).

    

    D.           The
      Required Lenders and the Revolving Lenders have consented to the requested
      modifications on the terms and conditions set forth herein.

    

    

    AGREEMENT

    

    

    NOW,
      THEREFORE, IN
      CONSIDERATION of the premises and other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      parties hereto agree as follows:

    
      
        
        

      

      
        
          

        

      

      
        
        

      

    

    I.           AMENDMENTS
      TO EXISTING CREDIT AGREEMENT

    

    Subject
      to the satisfaction of the
      conditions precedent set forth in Section 4 of Article II hereof, from and
      after
      the Second Amendment Effective Date (as defined below), the Existing Credit
      Agreement is hereby amended in the following respects:

    

    1.           Section
      5.2(k)(ii)(B)(I)(2) of the Existing Credit Agreement is hereby amended by
      deleting the reference therein to “$100,000,000” and replacing it with a
      reference to “$150,000,000”.

    

    2.           The
      definition of “Applicable Margin” in Section 7.1 of the Existing Credit
      Agreement is hereby amended by replacing the pricing grid relating to Revolving
      Loans and Revolving Commitments in clause (i) of such definition in its entirety
      with the following:

    

    
      	
               

              Pricing
                Level

            	
               

              Leverage
                Ratio

            	
               

              Applicable
                Margin for Commitment Fees

            	
               

              Revolving
                Loans

            
	 	
              Applicable
                Margin for Eurodollar Loans

            	
              Applicable
                Margin for ABR Loans

            
	
              I

            	
              >
                3.75x

            	
              .375%

            	
              1.50%

            	
              0.50%

            
	
              II

            	
              >
                3.25x and < 3.75x

            	
              .325%

            	
              1.25%

            	
              0.25%

            
	
              III

            	
              <
                3.25x

            	
              .300%

            	
              1.00%

            	
              0.00%

            

    

    

    3.           The
      definition of “Applicable Margin” in Section 7.1 of the Existing Credit
      Agreement is hereby further amended by deleting the “and” before clause (b) in
      the proviso in the last paragraph of such definition and inserting the following
      as a new clause (c) in such proviso:

    

    
      	
            	
              “(c) 
                

            	
              the
                Applicable Margin for Revolving Loans and the Commitment Fee as of
                the
                Second Amendment Effective Date shall be based on Pricing Level II
                of the
                pricing grid set forth in clause (i) above and shall remain at such
                level
                until the first Rate Calculation Date subsequent to the Second Amendment
                Effective Date (as defined in the Second Amendment hereto), and,
                thereafter, the Pricing Level shall be determined by the then current
                Leverage Ratio”

            

    

    

    4.           The
      definition of “Asset Disposition” in Section 7.1 of the Existing Credit
      Agreement is hereby amended by deleting the reference to “$25,000” in clause
      (ii) therein and replacing it with a reference to “$250,000”.

    

    5.           The
      definition of “Consolidated EBITDA” in Section 7.1 of the Existing Credit
      Agreement is hereby amended by deleting the “and” immediately before clause
      (iii)(e) and replacing it with a “,” and inserting the following as a new clause
      (iii)(f):

    

    “(f)
      cash restructuring charges taken
      by the Company in the fiscal year ended December 31, 2005 not to exceed
      $20,000,000 in the aggregate”

    

    6.           The
      definition of “Indebtedness” in Section 7.1 of the Existing Credit Agreement is
      hereby amended by adding the following proviso at the end of clause (vii) of
      such definition:

    
      
        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

    

    “;
provided
      that the component
      of such amount represented by contingent obligations only (i.e., rather than
      actual liabilities on the balance sheet) shall be reduced Dollar for Dollar
      by
      the amount of unrestricted cash on the consolidated balance sheet of the Company
      and its Subsidiaries,”

    

    

    II.           MISCELLANEOUS

    

    1.           Representations
      and Warranties.  Each of the Credit Parties represents and
      warrants to the Lenders and the Administrative Agent as follows:

    

    
      	
            	
              (i) 
                

            	
              It
                has taken all necessary action to authorize the execution, delivery
                and
                performance of this Amendment.

            

    

    

    
      	
              (ii) 
                

            	
              This
                Amendment has been duly executed and delivered by such Credit Party
                and
                constitutes such Credit Party’s legal, valid and binding obligation,
                enforceable in accordance with its terms, except as such enforceability
                may be limited (x) by general principles of equity and conflicts
                of laws
                (whether enforcement is sought by proceedings in equity or at law)
                or (y)
                by bankruptcy, reorganization, insolvency, moratorium or other laws
                of
                general application relating to or affecting the enforcement, of
                creditors' rights.

            

    

    

    
      	
              (iii) 
                

            	
              No
                consent, approval, authorization or order of, or filing, registration
                or
                qualification with, any court or governmental authority or third
                party is
                required in connection with the execution, delivery or performance
                by such
                Credit Party of this Amendment (except for those which have been
                obtained
                on or prior to the Second Amendment Effective
                Date).

            

    

    

    
      	
              (iv) 
                

            	
              The
                execution and delivery of this Amendment does not diminish or reduce
                its
                obligations under the Credit Documents (including, without limitation,
                in
                the case of each Guarantor, such Guarantor’s guaranty pursuant to
                Section 3A of the Existing Credit Agreement) in any manner, except as
                specifically set forth herein.

            

    

    

    
      	
            	
              (v) 
                

            	
              Such
                Credit Party has no claims, counterclaims, offsets, or defenses to
                the
                Credit Documents and the performance of its obligations thereunder,
                or if
                such Credit Party has any such claims, counterclaims, offsets, or
                defenses
                to the Credit Documents or any transaction related to the Credit
                Documents, the same are hereby waived, relinquished and released
                in
                consideration of the Required Lenders’ and the Term B Loan Lenders’
                execution and delivery of this
                Amendment.

            

    

    

    
      	
              (vi) 
                

            	
              The
                representations and warranties of the Credit Parties set forth in
                Section
                1 of the Existing Credit Agreement are true and correct in all material
                respects as of the date hereof (except those that expressly relate
                to an
                earlier date, in which case such representations and warranties are
                true
                and correct in all material respects as of such earlier date) and
                all of
                the provisions of the Credit Documents, except as amended hereby,
                are in
                full force and effect.

            

    

    
      
        
        

      

      
        -
          3
          -

        
          

        

      

      
        
        

      

    

    

    
      	
              (vii) 
                

            	
              Subsequent
                to the execution and delivery of this Amendment and after giving
                effect
                hereto, no unwaived event has occurred and is continuing on the date
                hereof which constitutes a Default or an Event of
                Default.

            

    

    

    2.           Liens.  Each
      Credit Party affirms the liens and security interests created and granted by
      it
      in the Credit Documents (including, but not limited to, the Security Agreement
      and the Mortgages) and agrees that this Amendment shall in no manner adversely
      affect or impair such liens and security interests.

    

    3.           Effect
      of Amendment.  Except as expressly modified and amended in this
      Amendment, all of the terms, provisions and conditions of the Credit Documents
      shall remain unchanged and in full force and effect.  The Credit
      Documents and any and all other documents heretofore, now or hereafter executed
      and delivered pursuant to the terms of or otherwise in connection with the
      Credit Documents are hereby amended so that any reference to the Existing Credit
      Agreement shall mean a reference to the Existing Credit Agreement as amended
      hereby.

    

    4.           Conditions
      Precedent.   This Amendment shall become effective as of the
      date first above written (the “Second Amendment Effective Date”) when,
      and only when, each of the following conditions shall have been satisfied (it
      being understood that the satisfaction of one or more of the following
      conditions may occur concurrently with the effectiveness of this
      Amendment):

    

    (a)           Execution
      of Counterparts of Amendment.  The Administrative Agent shall have
      received counterparts of this Amendment, which collectively shall have been
      duly
      executed on behalf of the Company, each of the Guarantors, the Required Lenders
      and each of the Revolving Lenders.

    

    (b)           Officer’s
      Certificate.  The Administrative Agent shall have received a
      certificate executed by a Responsible Officer of the Company as of the Second
      Amendment Effective Date, in form and substance satisfactory to the
      Administrative Agent, stating that (i) each Credit Party is in compliance with
      all existing material financial obligations, (ii) all governmental, shareholder
      and third party consents and approvals, if any, with respect to the Credit
      Documents and the transactions contemplated thereby have been obtained, (iii)
      no
      action, suit, investigation or proceeding is pending or threatened in any court
      or before any arbitrator or governmental instrumentality that purports to affect
      any Credit Party or any transaction contemplated by the Credit Documents, if
      such action, suit, investigation or proceeding would reasonably be expected
      to
      have a Material Adverse Effect, and (iv) (A) no Default or Event of Default
      exists and (B) all representations and warranties contained herein and in the
      other Credit Documents are true and correct in all material respects (except
      those that expressly relate to an earlier date, in which case such
      representations and warranties are true and correct in all material respects
      as
      of such earlier date).

    
      
        
        

      

      
        -
          4
          -

        
          

        

      

      
        
        

      

    

    

    (c)           Fees
      and Expenses.  The payment by the Company to the Agents (or their
      Affiliates) of all fees and expenses relating to this Amendment and the Existing
      Credit Agreement which are due and payable on the Second Amendment Effective
      Date, including, without limitation, payment by the Company (i) on the date
      hereof, of all out-of-pocket costs and expenses of the Agents in connection
      with
      the preparation, execution and delivery of this Amendment, including without
      limitation the fees and expenses of Moore & Van Allen PLLC, special counsel
      to the Agents, and (ii) of the other respective fees set forth in the engagement
      letter executed by and among the Company and the Agents in connection with
      this
      Amendment.

     

    5.           Construction.  This
      Amendment is a Credit Document executed pursuant to the Existing Credit
      Agreement and shall (unless otherwise expressly indicated therein) be construed,
      administered and applied in accordance with the terms and provisions of the
      Existing Credit Agreement as amended hereby.

    

    6.           Counterparts.  This
      Amendment may be executed in any number of counterparts and by the parties
      hereto in separate counterparts, each of which when so executed and delivered
      shall be deemed to be an original and all of which taken together shall
      constitute one and the same instrument.

    

    7.           GOVERNING
      LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
      HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE
      WITH
      THE LAWS OF THE STATE OF NEW YORK.

    

    8.           Binding
      Effect.  This Amendment, the Existing Credit Agreement as amended
      hereby and the other Credit Documents embody the entire agreement between the
      parties and supersede all prior agreements and understandings, if any, relating
      to the subject matter hereof. These Credit Documents represent the final
      agreement between the parties and may not be contradicted by evidence of prior,
      contemporaneous or subsequent oral agreements of the parties. Except as
      expressly modified and amended in this Amendment, all the terms, provisions
      and
      conditions of the Credit Documents shall remain unchanged and shall continue
      in
      full force and effect.

    

    9.           Severability.   If
      any provision of this Amendment is determined to be illegal, invalid or
      unenforceable, such provision shall be fully severable and the remaining
      provisions shall remain in full force and effect and shall be construed without
      giving effect to the illegal, invalid or unenforceable provisions.

    

    [Remainder
      of Page Intentionally Left Blank]

    

    
      
        
        

      

      
        -
          5
          -

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      each of the parties hereto has caused a counterpart of this Amendment to be
      duly
      executed and delivered as of the date first above written.

    

    COMPANY:                                                                           HERCULES
      INCORPORATED

    

    By:
      /s/
      Allen A. Spizzo

    Name:
      Allen A. Spizzo

    Title:
      Chief Financial Officer

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    GUARANTORS:                                                  AQUALON
      COMPANY,

    a
      Delaware general
      partnership

    EAST
      BAY REALTY SERVICES,
      INC.,

    a
      Delaware corporation

    HERCULES
      COUNTRY CLUB,
      INC.,

    a
      Delaware corporation

    HERCULES
      CREDIT,
      INC.,

    a
      Delaware corporation

    HERCULES
      EURO HOLDINGS,
      LLC,

    a
      Delaware limited liability
      company

    HERCULES
      FINANCE
      COMPANY,

    a
      Delaware general
      partnership

    HERCULES
      FLAVOR,
      INC.,

     a
      Delaware
      corporation

    HERCULES
      HYDROCARBON HOLDINGS,
      INC.,

    a
      Delaware corporation

    HERCULES
      INTERNATIONAL LIMITED,
      LLC,

    a
      Delaware limited liability
      company

    HERCULES
      PAPER HOLDINGS,
      INC.,

    a
      Delaware corporation

    HERCULES
      SHARED SERVICES
      CORPORATION,

    a
      Delaware corporation

    WSP,
      INC.,

    a
      Delaware corporation

    ATHENS
      HOLDINGS,
      INC.,

    a
      Delaware corporation

    COVINGTON
      HOLDINGS,
      INC.,

    a
      Delaware corporation

    FIBERVISIONS
      INCORPORATED,

    a
      Delaware corporation

    FIBERVISIONS,
      L.P.,

    a
      Delaware limited
      partnership

    FIBERVISIONS
      PRODUCTS,
      INC.,

    a
      Georgia corporation

    FIBERVISIONS,
      L.L.C.,

    a
      Delaware limited liability
      company

    

    

    By:
      /s/ Allen A. Spizzo

    Name:
      Allen A. Spizzo

    Title:
      Authorized
      Representative

    for
      each of the foregoing
      Guarantors

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              
                ADMINISTRATIVE
                  AGENT

              

            	
               

            

    

    
      	
              AND
                LENDER:

            	
              CREDIT
                SUISSE, CAYMAN ISLANDS BRANCH (formerly known as Credit Suisse
                First Boston, acting through its Cayman Islands Branch), in its capacity
                as Administrative Agent, Collateral Agent and
                Lender

            

    

    

    By:
      /s/ James
      Moran                                                                

    Name:
      James Moran

    Title:
      Managing Director

    

    By:  /s/
      Denise
      Alvarez                                                                

    Name:
      Denise Alvarez

    Title:
      Associate

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    LENDERS:                                                                          
      WACHOVIA BANK, NATIONAL ASSOCIATION

    

    By:  /s/
      C. Jeffrey
      Seaton                                                                

    Name
      C.
      Jeffrey Seaton

    Title:
      Managing Director

    

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ____________________________________

    [Name
      of Institution or
      Fund]

    

    By:                                                                

    Name:

    Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}]]