Document:

Exhibit 10.52

 

EXECUTION
COPY

 

THIRD-LIEN
LOAN AND GUARANTY AGREEMENT

 

dated as of
April 13, 2005

 

among

 

RELIANT
PHARMACEUTICALS, INC.,

 

CERTAIN
SUBSIDIARIES OF RELIANT PHARMACEUTICALS, INC.,

as
Guarantor Subsidiaries,

 

VARIOUS
LENDERS,

 

and

 

GOLDMAN
SACHS CREDIT PARTNERS L.P.,

as
Administrative Agent and Collateral Agent

 

 

$49,625,000
Senior Secured Credit Facility

 

 

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
  SECTION 1.

  	
  DEFINITIONS
  AND INTERPRETATION

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  1.1.

  	
  Definitions

  	
   

  	
  1

  
	
  1.2.

  	
  Accounting
  Terms

  	
   

  	
  23

  
	
  1.3.

  	
  Interpretation,
  etc

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  2.

  	
  LOANS

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  2.1.

  	
  Term
  Loans

  	
   

  	
  24

  
	
  2.2.

  	
  Subsequent
  Loans

  	
   

  	
  24

  
	
  2.3.

  	
  Reduction
  of Commitments

  	
   

  	
  25

  
	
  2.4.

  	
  PIK
  Loans

  	
   

  	
  25

  
	
  2.5.

  	
  Pro
  Rata Shares; Availability of Funds

  	
   

  	
  25

  
	
  2.6.

  	
  Use
  of Proceeds

  	
   

  	
  26

  
	
  2.7.

  	
  Evidence
  of Debt; Register; Lenders’ Books and Records; Notes

  	
   

  	
  26

  
	
  2.8.

  	
  Interest
  on Loans

  	
   

  	
  27

  
	
  2.9.

  	
  [RESERVED]

  	
   

  	
  27

  
	
  2.10.

  	
  Default
  Interest

  	
   

  	
  28

  
	
  2.11.

  	
  Fees

  	
   

  	
  28

  
	
  2.12.

  	
  [RESERVED]

  	
   

  	
  28

  
	
  2.13.

  	
  Voluntary
  Prepayments

  	
   

  	
  28

  
	
  2.14.

  	
  Mandatory
  Prepayments

  	
   

  	
  29

  
	
  2.15.

  	
  Application
  of Prepayments

  	
   

  	
  31

  
	
  2.16.

  	
  General
  Provisions Regarding Payments

  	
   

  	
  32

  
	
  2.17.

  	
  Ratable
  Sharing

  	
   

  	
  33

  
	
  2.18.

  	
  [RESERVED]

  	
   

  	
  33

  
	
  2.19.

  	
  Increased
  Costs; Capital Adequacy

  	
   

  	
  33

  
	
  2.20.

  	
  Taxes;
  Withholding, etc

  	
   

  	
  34

  
	
  2.21.

  	
  Obligation
  to Mitigate

  	
   

  	
  36

  
	
  2.22.

  	
  Defaulting
  Lenders

  	
   

  	
  36

  
	
  2.23.

  	
  Removal
  or Replacement of a Lender

  	
   

  	
  37

  
	
  2.24.

  	
  Incremental
  Term Loans

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  3.

  	
  CONDITIONS
  PRECEDENT

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  
	
  3.1.

  	
  Closing
  Date

  	
   

  	
  38

  
	
  3.2.

  	
  Conditions
  to Each Credit Extension

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  4.

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
  4.1.

  	
  Organization;
  Requisite Power and Authority; Qualification

  	
   

  	
  42

  
	
  4.2.

  	
  Capital
  Stock and Ownership

  	
   

  	
  43

  
	
  4.3.

  	
  Due
  Authorization

  	
   

  	
  43

  
	
  4.4.

  	
  No
  Conflict, Violation, Default

  	
   

  	
  43

  

 

i

 

	
  4.5.

  	
  Governmental
  Consents

  	
   

  	
  44

  
	
  4.6.

  	
  Binding
  Obligation

  	
   

  	
  44

  
	
  4.7.

  	
  Historical
  Financial Statements

  	
   

  	
  44

  
	
  4.8.

  	
  Projections

  	
   

  	
  44

  
	
  4.9.

  	
  No
  Material Adverse Change

  	
   

  	
  44

  
	
  4.10.

  	
  Schedule
  3.1(e)

  	
   

  	
  44

  
	
  4.11.

  	
  Adverse
  Proceedings, etc

  	
   

  	
  44

  
	
  4.12.

  	
  Payment
  of Taxes

  	
   

  	
  45

  
	
  4.13.

  	
  Properties

  	
   

  	
  45

  
	
  4.14.

  	
  Environmental
  Matters

  	
   

  	
  46

  
	
  4.15.

  	
  No
  Defaults

  	
   

  	
  46

  
	
  4.16.

  	
  Material
  Contracts

  	
   

  	
  47

  
	
  4.17.

  	
  Governmental
  Regulation

  	
   

  	
  47

  
	
  4.18.

  	
  Margin
  Stock

  	
   

  	
  47

  
	
  4.19.

  	
  Employee
  Matters

  	
   

  	
  47

  
	
  4.20.

  	
  Employee
  Benefit Plans

  	
   

  	
  48

  
	
  4.21.

  	
  Certain
  Fees

  	
   

  	
  48

  
	
  4.22.

  	
  Solvency

  	
   

  	
  48

  
	
  4.23.

  	
  [RESERVED]

  	
   

  	
  48

  
	
  4.24.

  	
  Permits,
  Compliance with Statutes, etc

  	
   

  	
  48

  
	
  4.25.

  	
  Disclosure

  	
   

  	
  48

  
	
  4.26.

  	
  New
  Drug Applications

  	
   

  	
  49

  
	
  4.27.

  	
  Quality
  of Inventory

  	
   

  	
  49

  
	
  4.28.

  	
  Non-disclosure
  and Confidentiality Policies

  	
   

  	
  49

  
	
  4.29.

  	
  Non-compliance
  with Governmental Regulation

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  AFFIRMATIVE
  COVENANTS

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
  5.1.

  	
  Financial
  Statements and Other Reports

  	
   

  	
  49

  
	
  5.2.

  	
  Existence

  	
   

  	
  53

  
	
  5.3.

  	
  Payment
  of Taxes and Claims

  	
   

  	
  53

  
	
  5.4.

  	
  Maintenance
  of Properties

  	
   

  	
  53

  
	
  5.5.

  	
  Insurance

  	
   

  	
  54

  
	
  5.6.

  	
  Inspections

  	
   

  	
  54

  
	
  5.7.

  	
  Lenders
  Meetings

  	
   

  	
  54

  
	
  5.8.

  	
  Compliance
  with Laws

  	
   

  	
  54

  
	
  5.9.

  	
  Environmental

  	
   

  	
  55

  
	
  5.10.

  	
  Subsidiaries

  	
   

  	
  56

  
	
  5.11.

  	
  Additional
  Material Real Estate Assets

  	
   

  	
  56

  
	
  5.12.

  	
  Segregated
  Account for Working Capital Collateral

  	
   

  	
  57

  
	
  5.13.

  	
  [RESERVED]

  	
   

  	
  57

  
	
  5.14.

  	
  Further
  Assurances

  	
   

  	
  57

  
	
  5.15.

  	
  Personal
  Property Collateral Access Agreement

  	
   

  	
  57

  

 

ii

 

	
  SECTION
  6.

  	
  NEGATIVE
  COVENANTS

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  
	
  6.1.

  	
  Indebtedness

  	
   

  	
  57

  
	
  6.2.

  	
  Liens

  	
   

  	
  59

  
	
  6.3.

  	
  Equitable
  Lien

  	
   

  	
  61

  
	
  6.4.

  	
  No
  Further Negative Pledges

  	
   

  	
  61

  
	
  6.5.

  	
  Restricted
  Junior Payments

  	
   

  	
  61

  
	
  6.6.

  	
  Restrictions
  on Subsidiary Distributions

  	
   

  	
  62

  
	
  6.7.

  	
  Investments

  	
   

  	
  62

  
	
  6.8.

  	
  [RESERVED]

  	
   

  	
  63

  
	
  6.9.

  	
  Fundamental
  Changes; Disposition of Assets; Acquisitions

  	
   

  	
  63

  
	
  6.10.

  	
  Disposal
  of Subsidiary Interests

  	
   

  	
  64

  
	
  6.11.

  	
  Sales
  and Lease-Backs

  	
   

  	
  64

  
	
  6.12.

  	
  Transactions
  with Shareholders and Affiliates

  	
   

  	
  64

  
	
  6.13.

  	
  Conduct
  of Business

  	
   

  	
  65

  
	
  6.14.

  	
  [RESERVED]

  	
   

  	
  65

  
	
  6.15.

  	
  Provisions
  Related to Joint Ventures

  	
   

  	
  65

  
	
  6.16.

  	
  Amendments
  or Waivers with Respect to Certain Indebtedness

  	
   

  	
  65

  
	
  6.17.

  	
  Fiscal
  Year

  	
   

  	
  65

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  GUARANTY

  	
   

  	
  65

  
	
   

  	
   

  	
   

  	
   

  
	
  7.1.

  	
  Guaranty
  of the Obligations

  	
   

  	
  65

  
	
  7.2.

  	
  Contribution
  by Guarantor Subsidiaries

  	
   

  	
  66

  
	
  7.3.

  	
  Payment
  by Guarantor Subsidiaries

  	
   

  	
  66

  
	
  7.4.

  	
  Liability
  of Guarantor Subsidiaries Absolute

  	
   

  	
  67

  
	
  7.5.

  	
  Waivers
  by Guarantor Subsidiaries

  	
   

  	
  68

  
	
  7.6.

  	
  Guarantor
  Subsidiaries’ Rights of Subrogation, Contribution, etc

  	
   

  	
  69

  
	
  7.7.

  	
  Subordination
  of Other Obligations

  	
   

  	
  69

  
	
  7.8.

  	
  Continuing
  Guaranty

  	
   

  	
  70

  
	
  7.9.

  	
  Authority
  of Guarantor Subsidiaries or Company

  	
   

  	
  70

  
	
  7.10.

  	
  Financial
  Condition of Company

  	
   

  	
  70

  
	
  7.11.

  	
  Bankruptcy,
  etc

  	
   

  	
  70

  
	
  7.12.

  	
  Discharge
  of Guaranty Upon Sale of Guarantor Subsidiary

  	
   

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  8.

  	
  EVENTS
  OF DEFAULT

  	
   

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
  8.1.

  	
  Events
  of Default

  	
   

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  9.

  	
  AGENTS

  	
   

  	
  73

  
	
   

  	
   

  	
   

  	
   

  
	
  9.1.

  	
  Appointment
  of Agents

  	
   

  	
  73

  
	
  9.2.

  	
  Powers
  and Duties

  	
   

  	
  73

  
	
  9.3.

  	
  General
  Immunity

  	
   

  	
  74

  
	
  9.4.

  	
  Agents
  Entitled to Act as Lender

  	
   

  	
  74

  
	
  9.5.

  	
  Lenders’
  Representations, Warranties and Acknowledgment

  	
   

  	
  75

  
	
  9.6.

  	
  Right
  to Indemnity

  	
   

  	
  75

  
	
  9.7.

  	
  Successor
  Administrative Agent

  	
   

  	
  75

  

 

iii

 

	
  9.8.

  	
  Collateral
  Documents and Guaranty

  	
   

  	
  76

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
  MISCELLANEOUS

  	
   

  	
  77

  
	
   

  	
   

  	
   

  	
   

  
	
  10.1.

  	
  Notices

  	
   

  	
  77

  
	
  10.2.

  	
  Expenses

  	
   

  	
  77

  
	
  10.3.

  	
  Indemnity

  	
   

  	
  77

  
	
  10.4.

  	
  Set-Off

  	
   

  	
  78

  
	
  10.5.

  	
  Amendments
  and Waivers

  	
   

  	
  78

  
	
  10.6.

  	
  Successors
  and Assigns; Participations

  	
   

  	
  79

  
	
  10.7.

  	
  Independence
  of Covenants

  	
   

  	
  82

  
	
  10.8.

  	
  Survival
  of Representations, Warranties and Agreements

  	
   

  	
  82

  
	
  10.9.

  	
  No
  Waiver; Remedies Cumulative

  	
   

  	
  83

  
	
  10.10.

  	
  Marshalling;
  Payments Set Aside

  	
   

  	
  83

  
	
  10.11.

  	
  Severability

  	
   

  	
  83

  
	
  10.12.

  	
  Obligations
  Several; Independent Nature of Lenders’ Rights

  	
   

  	
  83

  
	
  10.13.

  	
  Headings

  	
   

  	
  83

  
	
  10.14.

  	
  APPLICABLE
  LAW

  	
   

  	
  83

  
	
  10.15.

  	
  CONSENT
  TO JURISDICTION

  	
   

  	
  84

  
	
  10.16.

  	
  WAIVER
  OF JURY TRIAL

  	
   

  	
  84

  
	
  10.17.

  	
  Confidentiality

  	
   

  	
  84

  
	
  10.18.

  	
  Usury
  Savings Clause

  	
   

  	
  85

  
	
  10.19.

  	
  Counterparts

  	
   

  	
  85

  
	
  10.20.

  	
  Effectiveness

  	
   

  	
  85

  

 

iv

 

	
  APPENDICES:

  	
  A

  	
  Commitments

  
	
   

  	
  B

  	
  Notice
  Addresses

  
	
   

  	
   

  	
   

  
	
  SCHEDULES:

  	
  2.14(c)

  	
  Outstanding
  Warrants

  
	
   

  	
   

  	
   

  
	
   

  	
  3.1(e)

  	
  Liquidity
  Option Agreements

  
	
   

  	
  4.1

  	
  Jurisdictions
  of Organization and Qualification

  
	
   

  	
  4.2

  	
  Capital
  Stock and Ownership

  
	
   

  	
  4.7

  	
  Certain
  Liabilities

  
	
   

  	
  4.9

  	
  Certain
  Changes

  
	
   

  	
  4.11

  	
  Adverse
  Proceedings

  
	
   

  	
  4.12

  	
  Taxes

  
	
   

  	
  4.13

  	
  Title;
  Real Estate Assets

  
	
   

  	
  4.13(c)

  	
  Intellectual
  Property Rights

  
	
   

  	
  4.16

  	
  Material
  Contracts

  
	
   

  	
  4.17(b)

  	
  Non-compliance
  with Governmental Regulation

  
	
   

  	
  4.24

  	
  Legal
  Compliance

  
	
   

  	
  6.1(p)

  	
  Leased
  and Financed Vehicles

  
	
   

  	
  6.2(l)

  	
  Certain
  Liens

  
	
   

  	
  6.7

  	
  Certain
  Investments

  
	
   

  	
  6.12

  	
  Certain
  Affiliate Transactions

  
	
   

  	
   

  	
   

  
	
  EXHIBITS:

  	
  A

  	
  Form
  of Funding Notice

  
	
   

  	
  B-1

  	
  Form
  of Note

  
	
   

  	
  B-2

  	
  Form
  of PIK Note

  
	
   

  	
  C

  	
  Form
  of Compliance Certificate

  
	
   

  	
  D

  	
  Form
  of Opinion of Counsel

  
	
   

  	
  E

  	
  Form
  of Assignment Agreement

  
	
   

  	
  F

  	
  Form
  of Certificate Re Non-bank Status

  
	
   

  	
  G-1

  	
  Form
  of Closing Date Certificate

  
	
   

  	
  G-2

  	
  Form
  of Solvency Certificate

  
	
   

  	
  H

  	
  Form
  of Counterpart Agreement

  
	
   

  	
  I

  	
  [RESERVED]

  
	
   

  	
  J

  	
  Form
  of Joinder Agreement

  
	
   

  	
  K

  	
  Form
  of Personal Property Collateral Access Agreement

  

 

v

 

THIRD-LIEN
LOAN AND GUARANTY AGREEMENT

 

This THIRD-LIEN
LOAN AND GUARANTY AGREEMENT, dated as of April 13, 2005, is entered
into by and among RELIANT PHARMACEUTICALS,
INC., a corporation organized under the laws of the state of
Delaware (“Company”), CERTAIN SUBSIDIARIES OF COMPANY, as
Guarantor Subsidiaries, the Lenders party hereto from time to time, and GOLDMAN SACHS CREDIT PARTNERS L.P. (“GSCP”) as Administrative Agent and
Collateral Agent.

 

RECITALS:

 

WHEREAS, capitalized terms used in these Recitals
shall have the respective meanings set forth for such terms in Section 1.1
hereof;

 

WHEREAS, Lenders have agreed to make a term loan to
Company, in an amount not to exceed an aggregate principal amount of $49.625
million, the proceeds of which will be used for general corporate purposes,
working capital and Permitted Acquisitions;

 

WHEREAS, Company has agreed to secure all of its
Obligations by granting to Collateral Agent, for the benefit of Secured
Parties, (1) a Third Priority Lien on substantially all of its assets,
including a pledge of all of the Capital Stock of each of its Domestic
Subsidiaries, if any, and 65% of all of the Capital Stock of each of its
Foreign Subsidiaries, if any, but excluding the accounts receivable that
comprise the Working Capital Collateral, and (2) a fourth priority lien on the
Working Capital Collateral; and

 

WHEREAS, Guarantor Subsidiaries have agreed to guarantee
the obligations of Company hereunder and, except in the case of RP Sub No. 1,
to secure their respective Obligations by granting to Collateral Agent, for the
benefit of Secured Parties, a Third Priority Lien on substantially all of their
respective assets, including a pledge of all of the Capital Stock of each of
their respective Domestic Subsidiaries, if any, and 65% of all the Capital
Stock of each of their respective Foreign Subsidiaries, if any.

 

NOW, THEREFORE, in consideration of the premises and the
agreements, provisions and covenants herein contained, the parties hereto agree
as follows:

 

Section 1. DEFINITIONS AND INTERPRETATION

 

1.1. Definitions. The following terms used herein, including
in the preamble, recitals, exhibits and schedules hereto, shall have the
following meanings:

 

“Administrative Agent” means GSCP in such capacity as an
administrative agent hereunder, and its successors or assigns.

 

“Adverse Proceeding” means any action, suit, proceeding (whether
administrative, judicial or otherwise), governmental investigation or
arbitration (whether or not purportedly on behalf of Company or any of its
Subsidiaries) at law or in equity, or before or by any Governmental Authority,
domestic or foreign (including any Environmental Claims), whether pending or,
to the Knowledge of Company or any of its Subsidiaries, threatened in writing
against or adversely affecting Company or any of its Subsidiaries or any
property of Company or any of its Subsidiaries.

 

“Affected Lender” as defined in Section 2.18(b).

 

 

“Affected Loans” as defined in Section 2.18(b).

 

“Affiliate” means, as applied to any Person, any other
Person directly or indirectly controlling, controlled by, or under common
control with, that Person. For the purposes of this definition, “control”
(including, with correlative meanings, the terms “controlling”, “controlled by”
and “under common control with”), as applied to any Person, means the
possession, directly or indirectly, of the power (i) to vote 10% or more of the
Securities having ordinary voting power for the election of directors (or
individuals performing comparable functions) of such Person or (ii) to direct
or cause the direction of the management and policies of that Person, whether
through the ownership of voting securities or by contract or otherwise.

 

“Agent” means Administrative Agent, Collateral Agent
and any successors or assigns.

 

“Aggregate Amounts Due” as defined in Section 2.17.

 

“Aggregate Payments” as defined in Section 7.2.

 

“Aggregate Proceeds Threshold” means the greater of (x) $7,500,000 and (y)
the net proceeds from the sale or disposition of Axid® OS. For purposes of calculating the Aggregate Proceeds Threshold, any
amounts paid or required to be paid after the Closing Date to Eli Lilly and
Company in connection with Axid® OS shall be
deducted from the proceeds of the sale or disposition of Axid® OS, whether or not such amounts have already been paid at the time of
the Axid® OS sale.

 

“Agreement” means this Third-Lien Loan and Guaranty
Agreement, dated as of April 13, 2005, as it may be amended, restated,
supplemented or otherwise modified from time to time.

 

“Asset Sale” means a sale, lease or sub-lease (as lessor
or sublessor), sale-and-leaseback, assignment, conveyance, transfer or other
disposition to, or any exchange of property with, any Person (other than
Company or any Guarantor Subsidiary, excluding RP Sub No. 1), in one
transaction or a series of transactions, of all or any part of Company’s or any
of its Subsidiaries’ businesses, assets (other than Cash or Cash Equivalents
sold for the fair market value thereof) or properties of any kind, whether
real, personal or mixed and whether tangible or intangible, whether now owned
or hereafter acquired, including, without limitation, the Capital Stock of any of
Company’s Subsidiaries, other than (i) inventory sold, leased or otherwise
disposed of in the ordinary course of business (excluding any such sales by
operations or divisions discontinued or to be discontinued) and obsolete, worn
out or surplus property, (ii) licenses and sublicenses granted by Company in
the ordinary course of business to enable third parties to manufacture
inventory for sale by Company or its Subsidiaries, or otherwise provide goods
or services to Company or its Subsidiaries, provided, that such
licenses and sublicenses do not permit the manufacture of products for, or the
provision of services to, Persons other than the Company or its Subsidiaries
and Persons providing services to Company and its Subsidiaries, and (iii) any
transfer of a Product to a PSF Joint Venture or any receipt of funds from a PSF
Counterpart pursuant to the terms of an Eligible Product-Specific Financing.

 

“Assignment Agreement” means an Assignment and Assumption Agreement
substantially in the form of Exhibit E, with such amendments or modifications
as may be approved by Administrative Agent.

 

“Authorized Officer” means, as applied to any Person, any
individual holding the position of chairman of the board (if an officer), chief
executive officer, president or one of its vice presidents (or the equivalent
thereof), and such Person’s chief financial officer, treasurer or controller.

 

2

 

“Bankruptcy Code” means Title 11 of the United States Code
entitled “Bankruptcy,” as now and hereafter in effect, or any
successor statute.

 

“Beneficiary” means each Agent and each Lender.

 

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

 

“Capital Lease” means, as applied to any Person, any lease
of any property (whether real, personal or mixed) by that Person as lessee
that, in conformity with GAAP, is or should be accounted for as a capital lease
on the balance sheet of that Person.

 

“Capital Stock” means any and all shares, interests,
participations or other equivalents (however designated) of capital stock of a
corporation, any and all equivalent ownership interests in a Person (other than
a corporation), including, without limitation, any preferred interests and
preferred shares, partnership interests and membership interests, and any and
all warrants, rights or options to purchase or other arrangements or rights to
acquire any of the foregoing.

 

“Cash” means money, currency or a credit balance in
any demand or Deposit Account.

 

“Cash Equivalents” means, as at any date of determination, (i)
marketable securities (a) issued or directly and unconditionally guaranteed as
to interest and principal by the United States Government or (b) issued by any
agency of the United States the obligations of which are backed by the full
faith and credit of the United States, in each case maturing within one year
after such date; (ii) marketable direct obligations issued by any state of the
United States of America or any political subdivision of any such state or any
public instrumentality thereof, in each case maturing within one year after
such date and having, at the time of the acquisition thereof, a rating of at
least A-1 from S&P or at least P-1 from Moody’s; (iii) commercial paper
maturing no more than one year from the date of creation thereof and having, at
the time of the acquisition thereof, a rating of at least A-1 from S&P or
at least P-1 from Moody’s; (iv) certificates of deposit or bankers’ acceptances
maturing within one year after such date and issued or accepted by any Lender
or by any commercial bank organized under the laws of the United States of
America or any state thereof or the District of Columbia that (a) is at least “adequately capitalized” (as defined in the regulations of its
primary Federal banking regulator) and (b) has Tier 1 capital (as defined in
such regulations) of not less than $100,000,000; and (v) shares of any money
market mutual fund that (a) has substantially all of its assets invested
continuously in the types of investments referred to in clauses (i) and (ii)
above, (b) has net assets of not less than $500,000,000, and (c) has the
highest rating obtainable from either S&P or Moody’s.

 

“Certificate re Non-Bank Status” means a certificate substantially in the
form of Exhibit F.

 

“cGMPs”
means the regulatory requirements for current good manufacturing practices
promulgated by the United States FDA under the Food and Drug Act, including at
21 C.F.R. § 210 et seq., and
under the Public Health Service Act, Biological Products, 21 C.F.R. §§ 610-10,
as the same may be amended from time to time.

 

3

 

“Change of Control” means, at any time,

 

(i) any Person or “group” (within the meaning of Rules 13d-3 and
13d-5 under the Exchange Act) other than Specified Holders (a) shall have
acquired beneficial ownership of 50% or more on a fully diluted basis of the
voting and/or economic interest in the Capital Stock of Company or (b) shall
have obtained the power (whether or not exercised) to elect a majority of the
members of the board of directors (or similar governing body) of Company; or

 

(ii) any “change of control” or similar event under
the documentation evidencing the First-Lien Term Loan or the Second-Lien Term
Loan shall have occurred; or

 

(iii) prior to the consummation of an initial public
offering of the Capital Stock of Company, the Specified Holders fail to hold at
least 25% of the Capital Stock of the Company.

 

“Closing Date” means the date of this Agreement, which shall
be the date on which the initial Loans are made pursuant to Section 2.1.

 

“Closing Date Certificate” means a Closing Date Certificate
substantially in the form of Exhibit G-1.

 

“Collateral” means, collectively, all of the owned real
property, personal property, mixed property (including Capital Stock) and the
Interest Reserve Funds (as defined under the First-Lien Term Loan Agreement) in
which Liens are purported to be granted pursuant to the Collateral Documents as
security for the Obligations.

 

“Collateral Agent” means GSCP in such capacity as a collateral
agent under the Pledge and Security Agreement and hereunder, and its successors
or assigns.

 

“Collateral Documents” means the Pledge and Security Agreement and
all other instruments, documents and agreements delivered by any Credit Party
pursuant to this Agreement or any of the other Credit Documents in order to
grant to Collateral Agent, for the benefit of Secured Parties, a Lien on any
owned real property, personal property or mixed property of that Credit Party
as security for the Obligations.

 

“Collateral Questionnaire” means a certificate in form satisfactory to
Collateral Agent that provides information with respect to the personal or
mixed property of each Credit Party.

 

“Commitment” means the commitment of a Lender to make or
otherwise fund a Loan pursuant to Section 2.1 and 2.2, and “Commitments” means such commitments of all
Lenders in the aggregate. The amount of each Lender’s Commitment, if any, is
set forth on Appendix A or in the applicable Assignment Agreement, reduced by
the principal amount of any Loans previously made by such Lender. The aggregate
amount of the Commitments as of the Closing Date is specifically set forth on
Appendix A hereto before giving effect to any Loans made on the Closing Date.
For the avoidance of doubt, the making of a Loan under Section 2.1 and 2.2 and
the consequent termination of such Lender’s Commitment do not limit the
obligation of such Lender to make a PIK Loan under Section 2.8(b).

 

“Commitment Period” means the period from and including the
Closing Date to but excluding the Commitment Termination Date.

 

 

4

 

“Commitment Termination Date” means the earliest to occur of (i) one year
prior to the Maturity Date, (ii) the date the Commitments of all Lenders are
reduced to zero in accordance with this Agreement, and (iii) the date of the
termination of the Commitments pursuant to Section 8.1.

 

“Company” as defined in the preamble hereto.

 

“Compliance Certificate” means a Compliance Certificate substantially
in the form of Exhibit C.

 

“Consolidated Adjusted EBITDA” means, for any period, an amount determined
for Company and its Subsidiaries on a consolidated basis equal to (i) the sum,
without duplication, of the amounts for such period of (a) Consolidated Net
Income, (b) Consolidated Interest Expense, (c) provisions for taxes based on
income, (d) total depreciation expense, (e) total amortization expense, and (f)
other non-Cash items reducing Consolidated Net Income (excluding any such
non-Cash item to the extent that it represents an accrual or reserve for potential
Cash items in any future period or amortization of a prepaid Cash item that was
paid in a prior period), minus (ii) other non-Cash items increasing
Consolidated Net Income for such period (excluding any such non-Cash item to
the extent it represents the reversal of an accrual or reserve for potential
Cash item in any prior period).

 

“Consolidated Capital Expenditures” means, for any period, the aggregate of all
expenditures of Company and its Subsidiaries during such period determined on a
consolidated basis that, in accordance with GAAP, are or should be included in “purchase
of property and equipment” or similar items reflected in the consolidated
statement of cash flows of Company and its Subsidiaries.

 

“Consolidated Cash Interest Expense” means, for any period, Consolidated Interest
Expense for such period, excluding any amount not payable in Cash.

 

“Consolidated Current Assets” means, as at any date of determination, the
total assets of Company and its Subsidiaries on a consolidated basis that may
properly be classified as current assets in conformity with GAAP, excluding
Cash and Cash Equivalents.

 

“Consolidated Current Liabilities” means, as at any date of determination, the
total liabilities of Company and its Subsidiaries on a consolidated basis that
may properly be classified as current liabilities in conformity with GAAP,
excluding the current portion of long-term debt.

 

“Consolidated Excess Cash Flow” means, for any period, an amount (if
positive) equal to: (i) the sum, without duplication, of the amounts for such
period of (a) Consolidated Adjusted EBITDA, plus (b) the Consolidated Working
Capital Adjustment, minus (ii) the sum, without duplication, of the
amounts for such period of (a) repayments of Consolidated Total Debt, (b)
Consolidated Capital Expenditures (net of any proceeds of (y) any related
financings with respect to such expenditures and (z) any sales of assets used
to finance such expenditures), (c) Consolidated Cash Interest Expense, (d)
provisions for current taxes based on income of Company and its Subsidiaries
and payable in cash with respect to such period, and (e) Cash payments made by
the Company and its consolidated subsidiaries as part of the purchase price for
a Permitted Acquisition and expenses incurred to consummate such Permitted
Acquisition.

 

“Consolidated Interest Expense” means, for any period, total interest
expense (including that portion attributable to Capital Leases in accordance
with GAAP and capitalized interest hereunder or otherwise) of Company and its Subsidiaries
on a consolidated basis with respect to all outstanding Indebtedness of Company
and its Subsidiaries, including all commissions, discounts and other fees and
charges owed with respect to letters of credit and net costs under Interest
Rate Agreements, but excluding, however, any amounts referred to in Section
2.11 payable before the Closing Date.

 

5

 

“Consolidated Net Income” means, for any period, (i) the net income
(or loss) of Company and its Subsidiaries on a consolidated basis for such
period taken as a single accounting period determined in conformity with GAAP, minus
(ii) (a) the income (or loss) of any Person (other than a Subsidiary of
Company) in which any other Person (other than Company or any of its
Subsidiaries) has a joint interest, except to the extent of the amount of
dividends or other distributions actually paid to Company or any of its
Subsidiaries by such Person during such period, (b) the income (or loss) of any
Person accrued prior to the date it becomes a Subsidiary of Company or is
merged into or consolidated with Company or any of its Subsidiaries or that
Person’s assets are acquired by Company or any of its Subsidiaries, (c) the
income of any Subsidiary of Company to the extent that the declaration or
payment of dividends or similar distributions by that Subsidiary of that income
is not at the time permitted by operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or governmental
regulation applicable to that Subsidiary, (d) any after-tax gains or losses
attributable to Asset Sales or returned surplus assets of any Pension Plan, and
(e) (to the extent not included in clauses (a) through (d) above) any net
extraordinary gains or net extraordinary losses.

 

“Consolidated Total Debt” means, as at any date of determination, the
aggregate stated balance sheet amount of all Indebtedness of Company and its
Subsidiaries determined on a consolidated basis in accordance with GAAP.

 

“Consolidated Working Capital” means, as at any date of determination, the
excess of Consolidated Current Assets over Consolidated Current Liabilities.

 

“Consolidated Working Capital
Adjustment” means,
for any period on a consolidated basis, the amount (which may be a negative
number) by which Consolidated Working Capital as of the beginning of such
period exceeds (or is less than) Consolidated Working Capital as of the end of
such period.

 

“Contractual Obligation” means, as applied to any Person, any
provision of any Security issued by that Person or of any indenture, mortgage,
deed of trust, contract, undertaking, agreement or other instrument to which
that Person is a party or by which it or any of its properties is bound or to
which it or any of its properties is subject.

 

“Contributing Guarantors” as defined in Section 7.2.

 

“Counterpart Agreement” means a Counterpart Agreement substantially
in the form of Exhibit H delivered by a Credit Party pursuant to Section 5.10.

 

“Credit Date” means the date of a Credit Extension
(including the Closing Date), which date shall only be a Business Day selected
in accordance with this Agreement.

 

“Credit Document” means any of this Agreement, the Notes, if
any, the Collateral Documents, the Term Loan Intercreditor Agreement, the
Working Capital Intercreditor Agreement and all other documents, instruments or
agreements executed and delivered by a Credit Party for the benefit of any
Agent, or any Lender in connection herewith, and including, for the avoidance
of doubt, any Counterpart Agreement.

 

“Credit Extension” means the making of one or more Loans.

 

6

 

“Credit Party” means each Person (other than any Agent or
any Lender or any other representative thereof) from time to time party to a
Credit Document.

 

“Currency Agreement” means any foreign exchange contract,
currency swap agreement, futures contract, option contract, synthetic cap or
other similar agreement or arrangement, each of which is for the purpose of
hedging the foreign currency risk associated with Company’s and its
Subsidiaries’ operations and not for speculative purposes.

 

“Default” means a condition or event that, after
notice or lapse of time or both, would constitute an Event of Default.

 

“Default Excess” means, with respect to any Defaulting
Lender, the excess, if any, of such Defaulting Lender’s Pro Rata Share of the
aggregate outstanding principal amount of Loans of all Lenders (calculated as
if all Defaulting Lenders (other than such Defaulting Lender) had funded all of
their respective Defaulted Loans) over the aggregate outstanding principal
amount of all Loans of such Defaulting Lender.

 

“Default Period” means, with respect to any Defaulting
Lender, the period commencing on the date of the applicable Funding Default and
ending on the earliest of the following dates: (i) the date on which all
Commitments are cancelled or terminated and/or the Obligations are declared or
become immediately due and payable, (ii) the date on which (a) the Default
Excess with respect to such Defaulting Lender shall have been reduced to zero
(whether by the funding by such Defaulting Lender of any Defaulted Loans of
such Defaulting Lender or by the non-pro rata application of any voluntary or
mandatory prepayments of the Loans in accordance with the terms of Section 2.13
or Section 2.14 or by a combination thereof) and (b) such Defaulting Lender
shall have delivered to Company and Administrative Agent a written
reaffirmation of its intention to honor its obligations hereunder with respect
to its Commitment, and (iii) the date on which Company, Administrative Agent
and Requisite Lenders waive all Funding Defaults of such Defaulting Lender in
writing.

 

“Defaulted Loan” as defined in Section 2.22.

 

“Defaulting Lender” as defined in Section 2.22.

 

“Deposit Account” means a demand, time, savings, passbook or
like account with a bank, savings and loan association, credit union or like
organization, other than an account evidenced by a negotiable certificate of
deposit.

 

“Dollars” and the sign “$” mean the lawful money of the United States of America.

 

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

 

“Eligible Assignee” means (i) any Lender, any Affiliate of any
Lender and any Related Fund (any two or more Related Funds being treated as a
single Eligible Assignee for all purposes hereof), and (ii) any commercial
bank, insurance company, investment or mutual fund or other entity that is an “accredited investor” (as defined in Regulation D under the
Securities Act) and which extends credit or buys loans as one of its
businesses; provided, no Person that is or intends to be a competitor of
the Company (except any Person that is described in clauses (i) or (ii) and is
or may be deemed to be a competitor of the Company solely by virtue of being a
lender to, or Non-Controlling Equity Investor (as defined below) with respect
to such a competitor), other than an Affiliate of Company or its Subsidiaries,

 

7

 

shall
be an Eligible Assignee. For purposes of the preceding sentence, “Non-Controlling Equity Investor” means,
with respect to the relevant entity, a Person that (i) is not an Affiliate of
such entity, (ii) does not possess a seat on the board of directors (or
individuals performing comparable functions) of such entity and (iii) does not
possess, directly or indirectly, the power to elect a member of the board of
directors (or individuals performing comparable functions) of such entity.

 

“Eligible Product-Specific
Financing” means any
financing or Joint Venture arrangement that conforms to the following criteria:

 

(i)
the Company has given the Administrative Agent and the Lenders notice of any
such financing or arrangement at least 10 Business Days prior to the closing
date of any such financing or arrangement together with a reasonably detailed
description of such transaction, and the Requisite Lenders shall have approved
in writing such transaction prior to the closing date of such transaction;

 

(ii)
such financing or arrangement is between (a) a Person that is not an Affiliate
of Company (such Person, the “PSF Counterpart”),
and (b) Company or any of its Guarantor Subsidiaries (other than RP Sub No. 1),
with respect to a specific pharmaceutical product or pharmaceutical product
family or pharmaceutical formulation in the development phase (collectively, a “Product”) (including line extensions and
improvements to approved products) pursuant to which the PSF Counterpart agrees
to lend, reimburse or pay a portion of the development costs of such Product in
exchange for any one or a combination of the following: (1) rights of the PSF
Counterpart to share in the profits from the ultimate sale or exploitation of such
Product, (2) royalties payable to the PSF Counterpart on the sale of such
Product, (3) repayment to the PSF Counterpart of development costs and agreed
upon premiums upon achievement of certain milestone events, or (4) repayment to
the PSF Counterpart of borrowed principal plus interest and fees thereon, provided,
however, that the Company and its applicable Subsidiaries, taken as a
whole, shall not enter into more than two separate such arrangements, each
involving a single Product, during the term of this Agreement;

 

(iii)
if such arrangement involves the establishment of a Joint Venture (a “PSF Joint Venture”) in which the PSF
Counterpart acquires Capital Stock of the PSF Joint Venture, (a) the Company or
its applicable Subsidiary shall grant to the Collateral Agent, pursuant to the
Pledge and Security Agreement, a Third Priority Lien on all of the Capital
Stock in the PSF Joint Venture owned by the Company or such Subsidiary, (b) the
PSF Joint Venture shall engage in no business other than entering into such
arrangement, shall have no Indebtedness other than the Indebtedness to the PSF
Counterpart contemplated in subparagraph (i) above and shall not grant a Lien
on any of its assets other than a Lien on the Product and related rights in
favor of the PSF Counterpart, and (c) the PSF Joint Venture shall not be
required to be a Guarantor Subsidiary or grant a Lien on its assets in favor of
the Collateral Agent;

 

(iv)
copies of the final documentation relating to each such arrangement or
financing shall be furnished reasonably promptly to the Administrative Agent
and no payments or distributions will be made to the PSF Counterpart in respect
of such arrangement other than pursuant to the terms of such documentation; and

 

(v)
no Default or Event of Default shall have occurred and be continuing either
before or after giving effect to such financing or arrangement.

 

8

 

“Employee Benefit Plan” means any “employee
benefit plan” as defined in
Section 3(3) of ERISA which is or was sponsored, maintained or contributed to
by, or required to be contributed by, Company, any of its Subsidiaries or any
of their respective ERISA Affiliates.

 

“Environmental Claim” means any written communication regarding
any investigation, notice, notice of violation, claim, action, suit,
proceeding, demand, abatement order or other order or directive (conditional or
otherwise), by any Governmental Authority or any other Person, arising (i)
pursuant to or in connection with any actual or alleged violation of any
Environmental Law; (ii) in connection with any Hazardous Material or any actual
or alleged Hazardous Materials Activity; or (iii) in connection with any actual
or alleged damage, injury, threat or harm to health, safety, natural resources
or the environment.

 

“Environmental Laws” means any and all current or future
applicable foreign or domestic, federal or state (or any subdivision of either
of them), statutes, ordinances, orders, rules, regulations, judgments and
Governmental Authorizations relating to (i) environmental matters, including
those relating to any Hazardous Materials Activity; (ii) the generation, use,
storage, transportation or disposal of Hazardous Materials; or (iii)
occupational safety and health, industrial hygiene, land use or the protection
of human, plant or animal health or welfare.

 

“ERISA” means the Employee Retirement Income
Security Act of 1974, as amended from time to time, and any successor thereto,
and the regulations thereunder.

 

“ERISA Affiliate” means, as applied to any Person, (i) any
corporation which is a member of a controlled group of corporations, within the
meaning of Section 414(b) of the Internal Revenue Code, of which that Person is
a member; (ii) any trade or business (whether or not incorporated) which is a
member of a group of trades or businesses under common control, within the
meaning of Section 414(c) of the Internal Revenue Code, of which that Person is
a member; and (iii) any member of an affiliated service group, within the
meaning of Section 414(m) or (o) of the Internal Revenue Code, of which that
Person is a member. Any former ERISA Affiliate of Company or any of its
Subsidiaries shall continue to be considered an ERISA Affiliate of Company or
any such Subsidiary within the meaning of this definition with respect to the
period such entity was an ERISA Affiliate of Company or such Subsidiary and
with respect to liabilities for which Company or such Subsidiary could be
liable under the Internal Revenue Code or ERISA.

 

“ERISA Event” means (i) a “reportable event”
within the meaning of Section 4043 of ERISA and the regulations issued
thereunder with respect to any Pension Plan (excluding those for which the
provision for 30-day notice to the PBGC has been waived by regulation); (ii)
the failure to meet the minimum funding standard of Section 412 of the Internal
Revenue Code with respect to any Pension Plan (whether or not waived in
accordance with Section 412(d) of the Internal Revenue Code); (iii) the
provision by the administrator of any Pension Plan pursuant to Section
4041(a)(2) of ERISA of a notice of intent to terminate such plan in a distress
termination described in Section 4041(c) of ERISA; (iv) the withdrawal by
Company, any of its Subsidiaries or any of their respective ERISA Affiliates
from any Pension Plan with two or more contributing sponsors or the termination
of any such Pension Plan resulting in liability to Company, any of its
Subsidiaries or any of their respective ERISA Affiliates pursuant to Section
4063 or 4064 of ERISA; (v) the institution by the PBGC of proceedings to
terminate any Pension Plan, or the occurrence of any event or condition which
might constitute grounds under ERISA for the termination of, or the appointment
of a trustee to administer, any Pension Plan; (vi) the imposition of liability
on Company, any of its Subsidiaries or any of their respective ERISA Affiliates
pursuant to Section 4062(e) or 4069 of ERISA or by reason of the application of
Section 4212(c) of ERISA; (vii) the occurrence of an act or omission which
could give rise to the imposition on Company, or

 

9

 

any
of its Subsidiaries of fines, penalties, taxes or related charges under Chapter
43 of the Internal Revenue Code or under Section 409, Section 502(c), (i) or
(l), or Section 4071 of ERISA in respect of any Employee Benefit Plan; (viii)
the assertion of a material claim (other than routine claims for benefits)
against any Employee Benefit Plan other than a Multiemployer Plan or the assets
thereof, or against Company or any of its Subsidiaries in connection with any
Employee Benefit Plan; (ix) receipt from the Internal Revenue Service of notice
of the failure of any Pension Plan (or any other Employee Benefit Plan intended
to be qualified under Section 401(a) of the Internal Revenue Code) to qualify
under Section 401(a) of the Internal Revenue Code, or the failure of any trust
forming part of any Pension Plan to qualify for exemption from taxation under
Section 501(a) of the Internal Revenue Code; or (x) the imposition of a Lien
pursuant to Section 401(a)(29) or 412(n) of the Internal Revenue Code or
pursuant to ERISA with respect to any Pension Plan.

 

“Event of Default” means each of the conditions or events set
forth in Section 8.1.

 

“Exchange Act” means the Securities Exchange Act of 1934,
as amended from time to time, and any successor statute.

 

“Facility” means any real property (including all
buildings, fixtures or other improvements located thereon) now, hereafter or
heretofore owned, leased, operated or used by Company or any of its
Subsidiaries or any of their respective predecessors or Affiliates.

 

“Fair Share Contribution Amount” as defined in Section 7.2.

 

“Fair Share” as defined in Section 7.2.

 

“FDA” as defined in Section 4.17(b).

 

“FDA Regulation” means any rule, regulation or administrative
order promulgated or issued by the FDA.

 

“Financial Officer Certification” means, with respect to the financial
statements for which such certification is required, the certification of the
principal financial officer of Company that such financial statements fairly
present, in all material respects, the financial condition of Company and its
Subsidiaries as at the dates indicated and the results of their operations and
their cash flows for the periods indicated, subject to changes resulting from
audit and normal year-end adjustments.

 

“Financial Plan” as defined in Section 5.1(i).

 

“First-Lien
Collateral Agent” means the collateral agent under the First-Lien
Security Agreement.

 

“First-Lien
Lenders” means the lender(s) under the First-Lien Term Loan
Agreement.

 

“First-Lien
Security Agreement” means the pledge and security agreement securing
the collateral relating to the Indebtedness under the First-Lien Term Loan
Agreement, as it may be amended, restated, supplemented or otherwise modified
from time to time in accordance with the terms hereof.

 

“First-Lien Term Loan Agreement” means the First-Lien Term Loan and Guaranty
Agreement, dated as of the date hereof, between Company and certain lenders and
agents, as it may be amended, restated, supplemented or otherwise modified from
time to time in accordance with the terms hereof.

 

10

 

“First-Lien Term Loan” means the term borrowing in an amount, not
to exceed an initial amount of $120 million, on the terms and conditions set
forth in the First-Lien Term Loan Agreement.

 

“Fiscal Quarter” means a fiscal quarter of any Fiscal Year.

 

“Fiscal Year” means the fiscal year of Company and its
Subsidiaries ending on December 31 of each calendar year.

 

“Food and Drug Act” means the Federal Food, Drug and Cosmetic
Act, as amended, 21 U.S.C. § 301 et seq.
and any successor act.

 

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

 

“Funding Default” as defined in Section 2.22.

 

“Funding Guarantor” as defined in Section 7.2.

 

“Funding Notice” means a notice substantially in the form of
Exhibit A.

 

“GAAP” means, subject to the limitations on the
application thereof set forth in Section 1.2, accounting principles generally
accepted in the United States in effect as of the date of determination
thereof.

 

“Governmental Acts” means any act (including any order or
decree) or omission, of any present or future Governmental Authority.

 

“Governmental Authority” means any federal, state, municipal,
national or other government, governmental department, commission, board,
bureau, court, agency or instrumentality or political subdivision thereof or
any entity or officer exercising executive, legislative, judicial, regulatory
or administrative functions of or pertaining to any government or any court, in
each case whether associated with a state of the United States, the United
States, or a foreign entity or government.

 

“Governmental Authorization” means any permit, license, authorization,
directive, consent order or consent decree of or from any Governmental
Authority.

 

“Grantor” as defined in the Pledge and Security
Agreement.

 

“Guaranteed Obligations” as defined in Section 7.1.

 

“Guarantor Subsidiary” means each Domestic Subsidiary of Company, excluding
any PSF Joint Venture.

 

“Guaranty” means the guaranty of each Guarantor
Subsidiary set forth in Section 7.

 

“Hazardous Material” means any chemical, material or substance,
exposure to which is prohibited, limited or regulated by any Governmental
Authority or which may or could pose a hazard to the health and safety of the
owners, occupants or any Persons in the vicinity of any Facility or to the
indoor or outdoor environment.

 

11

 

“Hazardous Materials Activity” means any past or current activity, event or
occurrence involving any Hazardous Materials, including the use, manufacture,
possession, storage, holding, presence, existence, location, Release,
threatened Release, discharge, placement, generation, transportation,
processing, construction, treatment, abatement, removal, remediation, disposal,
disposition or handling of any Hazardous Materials, and any corrective action
or response action with respect to any of the foregoing.

 

“Hedge Agreement” means an interest rate agreement or a
currency agreement entered into in the ordinary course of Company’s or any of
its Subsidiaries’ businesses.

 

“HHS” means the United States Department of Health
and Human Services, or any successor agency thereof.

 

“HHS Regulation” means any rule, regulations or
administrative order promulgates or issued by the HHS.

 

“Highest Lawful Rate” means the maximum lawful interest rate, if
any, that at any time or from time to time may be contracted for, charged, or
received under the laws applicable to any Lender which are now in effect or, to
the extent allowed by law, under such applicable laws which may hereafter be in
effect and which allow a higher maximum nonusurious interest rate than
applicable laws now allow.

 

“Historical Financial Statements” means, collectively, (i) the audited
financial statements of Company for the 2001, 2002 and 2003 Fiscal Years, each
consisting of a balance sheet and the related statement of operations, member’s
deficit and cash flows for such Fiscal Year and notes thereto, (ii) the
unaudited financial statements of Company for the Fiscal Year ended December
31, 2004, consisting of a balance sheet as of December 31, 2004 and the related
statements of operations and cash flows for such Fiscal Year and a statement of
stockholders’ equity from the prior fiscal year end through December 31, 2004
and notes thereto, and (iii) the unaudited financial statements of Company for
the months ending January 31, 2005 and February 28, 2005, consisting of a
balance sheet as of January 31, 2005 and as of February 28, 2005 and the
related statements of operations and cash flows for such month and a statement
of stockholders’ equity from the prior fiscal year end through February 28,
2005, and, in the case of clause (ii), together with a Financial Officer
Certification with respect thereto.

 

“Increased Amount Date” as defined in Section 2.24.

 

“Increased-Cost Lenders” as defined in Section 2.23.

 

“Indebtedness” as applied to any Person, means, without
duplication, (i) all indebtedness of such Person for borrowed money; (ii) that
portion of obligations of such Person with respect to Capital Leases that is
properly classified as a liability on a balance sheet in conformity with GAAP;
(iii) notes payable and drafts accepted by such Person representing extensions
of credit whether or not representing obligations for borrowed money; (iv) any
obligation owed by such Person for all or any part of the deferred purchase
price of property or services (excluding any such obligations incurred under
ERISA), which purchase price is (a) due more than six months from the date of
incurrence of the obligation in respect thereof to the extent classified as a
liability on a balance sheet in conformity with GAAP or (b) evidenced by a note
or similar written instrument; (v) all indebtedness secured by any Lien on any
property or asset owned or held by that Person regardless of whether the
indebtedness secured

 

12

 

thereby
shall have been assumed by that Person or is nonrecourse to the credit of that
Person; (vi) the face amount of any letter of credit (whether or not drawn)
issued for the account of that Person or as to which that Person is otherwise
liable for reimbursement of drawings; (vii) the direct or indirect guaranty,
endorsement (other than for collection or deposit in the ordinary course of
business), co-making, discounting with recourse or sale with recourse by such
Person of the obligation of another; (viii) any obligation of such Person the
primary purpose or intent of which is to provide assurance to an obligee that
the obligation of the obligor thereof will be paid or discharged, or any
agreement relating thereto will be complied with, or the holders thereof will be
protected (in whole or in part) against loss in respect thereof; (ix) any
liability of such Person for an obligation of another through any agreement
(contingent or otherwise) (a) to purchase, repurchase or otherwise acquire such
obligation or any security therefor, or to provide funds for the payment or
discharge of such obligation (whether in the form of loans, advances, stock
purchases, capital contributions or otherwise) or (b) to maintain the solvency
or any balance sheet item, level of income or financial condition of another
if, in the case of any agreement described under subclause (a) or (b) of this
clause (ix), the primary purpose or intent thereof is as described in clause
(viii) above; and (x) all obligations of such Person in respect of any exchange
traded or over the counter derivative transaction, including any Hedge
Agreement.

 

“Indemnified Liabilities” means, collectively, any and all
liabilities, obligations, losses, damages (including natural resource damages),
penalties, claims (including Environmental Claims), costs (including the costs
of any investigation, study, sampling, testing, abatement, cleanup, removal,
remediation or other response action necessary to remove, remediate, clean up
or abate any Hazardous Materials Activity), expenses and disbursements of any
kind or nature whatsoever (including the reasonable fees and disbursements of
counsel for Indemnitees in connection with any investigative, administrative or
judicial proceeding commenced or threatened by any Person, whether or not any
such Indemnitee shall be designated as a party or a potential party thereto,
and any reasonable fees or reasonable expenses incurred by Indemnitees in
enforcing the indemnity under Section 10.3 herein), whether direct, indirect or
consequential and whether based on any federal, state or foreign laws,
statutes, rules or regulations (including securities and commercial laws,
statutes, rules or regulations and Environmental Laws), on common law or
equitable cause or on contract or otherwise, that may be imposed on, incurred
by, or asserted against any such Indemnitee, in any manner relating to or
arising out of (i) this Agreement or the other Credit Documents or the
transactions contemplated hereby or thereby (including the use or intended use
of the proceeds thereof, or any proper enforcement of any of the Credit
Documents (including any sale of, collection from, or other realization upon
any of the Collateral or the enforcement of the Guaranty)); or (ii) any
Environmental Claim or any Hazardous Materials Activity relating to or arising
from, directly or indirectly, any past or present activity, operation, land
ownership, or practice of Company or any of its Subsidiaries.

 

“Indemnitee” as defined in Section 10.3(a).

 

“Intellectual Property Rights” as defined in Section 4.13(c).

 

“Interest Compounding Date” means each March 31, June 30, September 30,
and December 31 of each year commencing on the first such date to occur after
the Closing Date and ending on the last such date to occur prior to the
Maturity Date. If such date is not a Business Day, such Interest Compounding
Date will be the next succeeding Business Day.

 

“Interest Period” means an interest period of three months,
(i) initially, commencing on the Closing Date and ending on June 30, 2005 and (ii)
thereafter, commencing on the day on which the immediately preceding Interest
Period expires.

 

13

 

“Interest Rate Agreement” means any interest rate swap agreement,
interest rate cap agreement, interest rate collar agreement, interest rate
hedging agreement or other similar agreement or arrangement, each of which is
for the purpose of hedging the interest rate exposure associated with Company’s
and its Subsidiaries’ operations and not for speculative purposes.

 

“Interest Rate” as defined in Section 2.8(a).

 

“Internal Revenue Code” means the Internal Revenue Code of 1986, as
amended to the date hereof and from time to time hereafter, and any successor
statute, and the regulations thereunder.

 

“Investment” means (i) any direct or indirect purchase or
other acquisition by Company or any of its Subsidiaries of, or of a beneficial
interest in, any of the Securities of any other Person (other than a Guarantor
Subsidiary); (ii) any direct or indirect redemption, retirement, purchase or
other acquisition for value, by any Subsidiary of Company from any Person
(other than Company or any Guarantor Subsidiary), of any Capital Stock of such
Person; and (iii) any direct or indirect loan, advance (other than advances to employees
for moving, entertainment and travel expenses, drawing accounts and similar
expenditures in the ordinary course of business) or capital contribution by
Company or any of its Subsidiaries to any other Person (other than Company or
any Guarantor Subsidiary), including all indebtedness and accounts receivable
from that other Person that are not current assets or did not arise from sales
to that other Person in the ordinary course of business. The amount of any
Investment shall be the original cost of such Investment plus the cost of all
additions thereto, without any adjustments for increases or decreases in value,
or write-ups, write-downs or write-offs with respect to such Investment. For
purposes of this definition, RP Sub No. 1 shall not be considered a Guarantor
Subsidiary.

 

“Joinder Agreement” means an agreement substantially in the form
of Exhibit J.

 

“Joint Venture” means a joint venture, partnership or other
similar arrangement, whether in corporate, partnership or other legal form; provided,
in no event shall any corporate Subsidiary of any Person be considered to be a
Joint Venture to which such Person is a party.

 

“Knowledge” means, with respect to any Credit Party, the
actual knowledge of any Responsible Officer of such Credit Party.

 

“Lender” means each lender listed on the signature
pages hereto as a Lender, and any other Person that becomes a party hereto
pursuant to an Assignment Agreement.

 

“Lien” means (i) any lien, mortgage, pledge,
assignment, security interest, charge or encumbrance of any kind (including any
agreement to give any of the foregoing (other than an agreement to grant a Lien
on any Collateral that does not result in attachment of the Lien within the
meaning of 9-203 of the UCC until after the payment in full of the Obligations
and termination of all of the Commitments), any conditional sale or other title
retention agreement, and any lease in the nature thereof) and any option, trust
or other preferential arrangement having the practical effect of any of the
foregoing and (ii) in the case of Securities, any purchase option, call or
similar right of a third-party with respect to such Securities.

 

“Loan” means a loan made by a Lender to Company
pursuant to Section 2.1 or 2.2 or a PIK Loan deemed to have been made by a
Lender in the form of PIK Interest pursuant to Section 2.8(b).

 

14

 

“Loan Exposure” means, with respect to any Lender, as of any
date of determination, the outstanding principal amount of the Loans of such
Lender; provided, at any time prior to the making of the Loans, the Loan
Exposure of any Lender shall be equal to such Lender’s Commitment.

 

“Loan-to-Value Ratio” means the ratio as of the date of
determination of (i) Consolidated Total Debt, on a pro forma basis as of such
date, to (ii) (x) the net present value, at a 10% discount rate, of all future
promotional revenues and/or reimbursements received for Lescol® projected to be received from Novartis AG, plus (y) three times the
net sales revenue of all pharmaceutical products marketed for the four-Fiscal
Quarter period ending on the last day of the most recent Fiscal Quarter for
which financial statements have been delivered pursuant to Sections 5.1(b) or
5.1(c).

 

“Margin Stock” as defined in Regulation U of the Board of
Governors of the Federal Reserve System as in effect from time to time.

 

“Material Adverse Effect” means any effect, event, change or state of
fact that, individually or in the aggregate, has resulted in, or would be
reasonably likely to result in, a material adverse effect with respect to (i)
the business operations, properties, assets or condition (financial or
otherwise) of Company and its Subsidiaries taken as a whole; (ii) the industry
taken as a whole or the business segment taken as a whole in which Company or
its Subsidiaries operate or rely upon if such effect or development is
reasonably likely to have a material adverse effect on Company and its
Subsidiaries taken as a whole; (iii) the ability of any Credit Party to fully
and timely perform its Obligations; (iv) the legality, validity, binding effect
or enforceability against a Credit Party of a Credit Document to which it is a
party; or (v) the rights, remedies and benefits available to, or conferred
upon, any Agent, any Lender or any Secured Party under any Credit Document.

 

“Material Contract” means any contract or other arrangement to
which Company or any of its Subsidiaries is a party (other than the Credit
Documents) of which breach, nonperformance or cancellation could reasonably be
expected to have a Material Adverse Effect.

 

“Material Real Estate Asset” means any fee-owned Real Estate Asset having
a fair market value in excess of $2,000,000 as of the date of the acquisition
thereof.

 

“Maturity Date” means the earlier of (i) December 30, 2008,
and (ii) the date that all Loans shall become due and payable in full
hereunder, whether by acceleration or otherwise.

 

“Merrill Lynch” means Merrill Lynch Capital, Inc., as lender
under the Permitted Working Capital Facility, or any other lender thereunder.

 

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

 

“Multiemployer Plan” means any Employee Benefit Plan that is a “multiemployer plan” as defined in Section 3(37) of ERISA.

 

“NAIC” means The National Association of Insurance
Commissioners, and any successor thereto.

 

“Narrative Report” means, with respect to the financial
statements for which such narrative report is required, a management’s
discussion and analysis of financial condition and results of operations of
Company and its Subsidiaries for the applicable Fiscal Year to which such
financial statements relate.

 

15

 

“Net Asset Sale Proceeds” means, with respect to any Asset Sale, an
amount equal to: (i) Cash payments (including any Cash received by way of
deferred payment pursuant to, or by monetization of, a note receivable or
otherwise, but only as and when so received) received by Company or any of its
Subsidiaries from such Asset Sale, minus (ii) any bona fide direct costs
incurred in connection with such Asset Sale, including (a) income or gains
taxes payable by the seller as a result of any gain recognized in connection
with such Asset Sale, (b) payment of the outstanding principal amount of,
premium or penalty, if any, and interest on any Indebtedness (other than the
Loans) that is secured by a Lien on the stock or assets in question and that is
required to be repaid under the terms thereof as a result of such Asset Sale
and (c) a reasonable reserve for any indemnification payments (fixed or
contingent) attributable to seller’s indemnities and representations and
warranties to purchaser in respect of such Asset Sale undertaken by Company or
any of its Subsidiaries in connection with such Asset Sale.

 

“Net Insurance/Condemnation
Proceeds” means an
amount equal to: (i) any Cash payments or proceeds received by Company or any
of its Subsidiaries (a) under any casualty insurance policy in respect of a
covered loss thereunder or (b) as a result of the taking of any assets of
Company or any of its Subsidiaries by any Person pursuant to the power of
eminent domain, condemnation or otherwise, or pursuant to a sale of any such
assets to a purchaser with such power under threat of such a taking, minus
(ii) (a) any actual and reasonable costs incurred by Company or any of its
Subsidiaries in connection with the adjustment or settlement of any claims of
Company or such Subsidiary in respect thereof, and (b) any bona fide direct
costs incurred in connection with any sale of such assets as referred to in clause
(i)(b) of this definition, including income taxes payable as a result of any
gain recognized in connection therewith.

 

“New Term Loan Commitments” as defined in Section 2.24.

 

“New Term Loan Exposure” means, with respect to any Lender, as of any
date of determination, the outstanding principal amount of the New Term Loans
of such Lender.

 

“New Term Loan Lender” as defined in Section 2.24.

 

“New Term Loan Maturity Date” means the date that New Term Loans of a
Series shall become due and payable in full hereunder, as specified in the
applicable Joinder Agreement, including by acceleration or otherwise.

 

“New Term Loans” as defined in Section 2.24.

 

“Non-Consenting Lender” as defined in Section 2.23.

 

“Non-US Lender” as defined in Section 2.20(c).

 

“Note” means a promissory note in the form of
Exhibit B-1 (in the case of a Loan made pursuant to Section 2.1) or Exhibit B-2
(in the case of a PIK Loan deemed made pursuant to Section 2.8(b)), as it may
be amended, supplemented or otherwise modified from time to time.

 

“Obligations” means all obligations of every nature of
each Credit Party from time to time owed to the Agents (including former
Agents), the Lenders (including former Lenders or their affiliates) or any of
them under any Credit Document, whether for principal, interest (including
interest which, but for the filing of a petition in bankruptcy with respect to
such Credit Party, would have accrued on any Obligation, whether or not a claim
is allowed against such Credit Party for such interest in the related
bankruptcy proceeding), fees, expenses, indemnification or otherwise.

 

16

 

“Obligee Guarantor”
as defined in Section 7.7.

 

“Organizational Documents” means (i) with respect to any corporation,
its certificate or articles of incorporation or organization, as amended, and
its by-laws, as amended, (ii) with respect to any limited partnership, its
certificate of limited partnership, as amended, and its partnership agreement,
as amended, (iii) with respect to any general partnership, its partnership
agreement, as amended, and (iv) with respect to any limited liability company,
its certificate of formation or comparable documents, as amended, and its
operating agreement, as amended. In the event any term or condition of this
Agreement or any other Credit Document requires any Organizational Document to
be certified by a secretary of state or similar governmental official, the
reference to any such “Organizational
Document” shall only be to a
document of a type customarily certified by such governmental official.

 

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

 

“Pension Plan” means any Employee Benefit Plan, other than
a Multiemployer Plan, which is subject to Section 412 of the Internal Revenue
Code or Title IV or Section 302 of ERISA.

 

“Permitted Acquisition” means (a) any acquisition by Company or any
Guarantor Subsidiary (other than RP Sub No. 1, Inc.), whether by purchase,
merger or otherwise, of all or substantially all of (1) the assets, (2) the
Capital Stock, or (3) a business line, product line (regardless of the stage of
development) or unit or a division, of any Person whose primary business is the
research, development, testing, marketing, distribution or manufacture of pharmaceuticals,
or (b) a Permitted Minority Investment (any of (a) or (b), an “Acquisition”); provided,

 

(i)
immediately prior to, and after giving effect thereto, no Default or Event of
Default shall have occurred and be continuing or would result therefrom;

 

(ii)
all transactions in connection therewith shall be consummated, in all material
respects, in accordance with all applicable laws and in conformity with all
applicable Governmental Authorizations;

 

(iii)
in the case of the Acquisition of Capital Stock, the Capital Stock (except for
any such Securities in the nature of directors’ qualifying shares required
pursuant to applicable law) acquired or otherwise issued by such Person or any
newly formed Subsidiary of Company in connection with such acquisition shall be
owned by Company or a Guarantor Subsidiary thereof, if applicable, and Company
shall have taken, or caused to be taken, as of the date such Person becomes a
Subsidiary of Company, each of the actions set forth in Sections 5.10 and/or
5.11, as applicable;

 

(iv)
the aggregate amount of purchase price (as distinct from royalty fees,
licensing fees, promotional and marketing investments and similar payments) by
Company and its Subsidiaries in all such Acquisitions shall not (A) exceed $40
million during the period from the Closing Date through December 31, 2005 or
(B) exceed $60 million during the period from the Closing Date through the
Maturity Date;

 

(v)
after giving effect to the purchase price of each Acquisition, the sum of
Company’s Cash on hand, Company’s Cash Equivalents on hand and the remaining
undrawn availability under the Permitted Working Capital Facility following any
such Acquisition shall be at least $20 million;

 

17

 

(vi)
all assets acquired shall become Collateral and shall be subject to a Third
Priority Lien pursuant to the Pledge and Security Agreement; and

 

(vii)
Company shall have delivered to Administrative Agent at least five Business
Days prior to such proposed Acquisition all information with respect to such
acquired assets reasonably requested by the Administrative Agent, including,
without limitation, the aggregate consideration for such Acquisition and pro
forma financial projections.

 

“Permitted Liens” means each of the Liens permitted pursuant
to Section 6.2.

 

“Permitted Minority Investment” means any acquisition by Company or any
Guarantor Subsidiary, whether by purchase or otherwise, of less than all or
substantially all of (1) the assets, (2) the Capital Stock, or (3) a business
line, product line (regardless of the stage of development) or unit or a
division, of any Person; provided, that the primary business of
such Person is the research, development, testing, marketing, distribution or
manufacture of pharmaceuticals, and provided, further, that the
aggregate amount invested by Company and its Guarantor Subsidiaries in all such
acquisitions from and after September 3, 2004 does not exceed $3,000,000. For purposes of this
definition, RP Sub No. 1 shall not be considered a Guarantor Subsidiary.

 

“Permitted Working Capital Facility” means the Indebtedness of the Company
evidenced by the Credit Agreement, dated as of August 19, 2004, as amended by
the First Amendment dated as of October 20, 2004, among Company and Merrill Lynch
and other lenders from time to time party thereunder, the Second Amendment
dated as of the date hereof and as further amended, restated, supplemented and
otherwise modified from time to time, pursuant to which Company may borrow an
initial principal amount of up to $25 million, a maximum amount of $40 million
at any time outstanding in Fiscal Year 2005 and a maximum amount of $50 million
at any time outstanding after Fiscal Year 2005, subject to the terms and
conditions thereof.

 

“Person” means and includes natural persons,
corporations, limited partnerships, general partnerships, limited liability
companies, limited liability partnerships, joint stock companies, Joint
Ventures, associations, companies, trusts, banks, trust companies, land trusts,
business trusts or other organizations, whether or not legal entities, and
Governmental Authorities.

 

“Personal Property Collateral
Access Agreement”
means an agreement substantially in the form of Exhibit K, with such amendments
or modifications as may be approved by Collateral Agent in its reasonable
discretion, permitting Collateral Agent to access personal property of the
Company or its Subsidiaries, held by a third-party.

 

“PIK Interest” as defined in Section 2.8(b).

 

“PIK Loan” as defined in Section 2.4.

 

“PIK Note” as defined in Section 2.7(d).

 

“Pledge and Security Agreement” means the Pledge and Security Agreement,
dated as of the date hereof, among the Collateral Agent, Company and Guarantor
Subsidiaries (other than RP Sub No. 1) from time to time party thereto, as it
may be amended, supplemented or otherwise modified from time to time.

 

18

 

“Principal Office” means, for Administrative Agent, its “Principal Office” as set forth on Appendix B, or such other office as it may
from time to time designate in writing to Company and each Lender.

 

“Product”
as defined in the definition of “Eligible Product-Specific Financing”, except
that for the purposes of Sections 4.26, 4.27 and 4.29, Products means the
products currently being developed, marketed, sold and/or offered for sale in
the Territory under the following trademarks/tradenames: DynaCirc® (including DynaCirc® IR and DynaCirc CR®), Rythmol®, InnoPran® (including
InnoPran XL®), AntaraTM, Omacor® and Lescol® and all successor products thereto.

 

“Product Recall Notice” means any written notice from the FDA
stating that any product or product line of any Credit Party or any of its
Subsidiaries has been or will be recalled.

 

“Productive Assets”
as defined in Section 2.14(a).

 

“Projections” as defined in Section 4.8.

 

“Pro Rata Share” means, (i) with respect to all payments,
computations and other matters relating to the Loan Exposure of any Lender, the
percentage obtained by dividing (a) the Loan Exposure of that Lender by (b) the
aggregate Loan Exposure of all Lenders; and (ii) with respect to the Commitment
of any Lender, the percentage obtained by dividing (a) the Commitment of that
Lender by (b) the aggregate Commitment of all Lenders.

 

“PSF Counterpart” as defined in the definition of “Eligible Product-Specific Financing.”

 

“PSF Joint Venture” as defined in the definition of “Eligible Product-Specific Financing.”

 

“Real Estate Asset” means, at any time of determination, any fee
interest then held by any Credit Party in any real property.

 

“Receivables” as defined in the Pledge and Security
Agreement.

 

“Receivables-Related Assets” means (i) all rights of enforcement and
collection, remedies, guarantees, supporting obligations, letter-of-credit
rights and security interests, in each case, to the extent relating to the
Receivables, (ii) all books and records, information and data evidencing or
describing the Receivables, whether compiled or derived by Borrower or any of
its Subsidiaries or to which Borrower or any of its Subsidiaries is entitled,
in whatever form or medium, that at any time evidence or contain information
relating to any of the Receivables, (iii) all lockboxes and other depositary
accounts where the proceeds of Receivables are deposited to the extent constituting
proceeds of Receivables, (iv) all accessions and additions to, and
substitutions and replacements of, any and all of the foregoing, and (v) all
proceeds and products of the foregoing (including, without limitation, payment
intangibles, as such term is defined in the UCC).

 

“Receivables Records” as defined in the Pledge and Security
Agreement.

 

“Register” as defined in Section 2.7(b).

 

19

 

“Regulation D” means Regulation D of the Board of Governors
of the Federal Reserve System, as in effect from time to time.

 

“Related Fund” means, with respect to any Lender that is an
investment fund, any other investment fund that invests in or originates
commercial loans and that is managed or advised by the same investment advisor
as such Lender or by an Affiliate of such investment advisor.

 

“Release” means any release, spill, emission, leaking,
pumping, pouring, injection, escaping, deposit, disposal, discharge, dispersal,
dumping, leaching or migration of any Hazardous Material into the environment
(including the abandonment or disposal of any barrels, containers or other
closed receptacles containing any Hazardous Material), including the movement
of any Hazardous Material through the air, soil, surface water or groundwater.

 

“Replacement Lender” as defined in Section 2.23.

 

“Required Prepayment Date” as defined in Section 2.15(c)

 

“Requisite Lenders” means one or more Lenders having or holding
Loan Exposures representing more than 50% of the aggregate Loan Exposure of all
Lenders; provided, however, that for purposes of this definition,
Company shall not be considered a Lender.

 

“Responsible Officer” means, as applied to any Person, any
individual holding the position of chief executive officer, president, chief financial
officer, vice president-finance, treasurer, controller or general counsel.

 

“Restricted Junior Payment” means (i) any dividend or other
distribution, direct or indirect, on account of any shares of any class of
Capital Stock of Company now or hereafter outstanding, except (a) a dividend
payable solely in shares of any class of Capital Stock to the holders of that
class or (b) any dividend, distribution or other payment by a PSF Joint Venture
to a PSF Counterpart; (ii) any redemption, retirement, sinking fund or similar
payment (including redemptions and payments under any liquidity option
agreements), purchase or other acquisition for value, direct or indirect, of
any shares of any class of Capital Stock of Company now or hereafter
outstanding; (iii) any payment made to retire, or to obtain the surrender of,
any outstanding warrants, options or other rights to acquire shares of any
class of Capital Stock of Company now or hereafter outstanding; and (iv)
management or similar fees payable to a Specified Holder or any of its
Affiliates (excluding Guarantor Subsidiaries).

 

“RP Sub No. 1” means RP Sub No. 1, Inc., a Delaware
corporation, and its successors.

 

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

 

“Second-Lien
Collateral Agent” means the collateral agent under the Second-Lien
Security Agreement.

 

“Second-Lien
Lenders” means the Lender(s) under and as defined in the Second-Lien
Term Loan Agreement.

 

“Second-Lien
Security Agreement” means the pledge and security agreement securing
the collateral relating to the Indebtedness under the Second-Lien Term Loan
Agreement, as it may be amended, restated, supplemented or otherwise modified
from time to time in accordance with the terms hereof.

 

20

 

“Second-Lien Term Loan” means the term borrowing on the terms and
conditions set forth in the Second-Lien Term Loan Agreement.

 

“Second-Lien Term Loan Agreement” means the Second-Lien Term Loan and Guaranty
Agreement, dated as of the date hereof, between Company and certain lenders and
agents, as it may be amended, restated, supplemented or otherwise modified from
time to time in accordance with the terms hereof.

 

“Secured Parties” has the meaning assigned to that term in the
Pledge and Security Agreement.

 

“Securities” means any stock, shares, partnership
interests, limited liability company interests, voting trust certificates,
certificates of interest or participation in any profit-sharing agreement or
arrangement (e.g., stock appreciation rights), options, warrants, bonds,
debentures, notes, or other evidences of indebtedness, secured or unsecured,
convertible, subordinated or otherwise, or in general any instruments commonly
known as “securities” or any certificates of interest, shares
or participations in temporary or interim certificates for the purchase or
acquisition of, or any right to subscribe to, purchase or acquire, any of the
foregoing.

 

“Securities Act” means the Securities Act of 1933, as amended
from time to time, and any successor statute.

 

“Series” as defined in Section 2.24.

 

“Solvency Certificate” means a Solvency Certificate of the principal
financial officer of Company substantially in the form of Exhibit G-2.

 

“Solvent” means, with respect to any Credit Party,
that as of the date of determination, both (i) (a) the sum of such Credit Party’s
debt (including contingent liabilities, but excluding liabilities from
mandatorily redeemable preferred shares that are not redeemable prior to the
Maturity Date) does not exceed the present fair saleable value of such Credit
Party’s assets at such date of determination; (b) such Credit Party’s capital
is not unreasonably small in relation to its business as contemplated on the
Closing Date and reflected in the Projections or with respect to any
transaction contemplated or undertaken after the Closing Date; and (c) such
Credit Party has not incurred and does not intend to incur, or believe (nor
should it reasonably believe) that it will incur, debts beyond its ability to pay
such debts as they become due (whether at maturity or otherwise); and (ii) such
Credit Party is “solvent” within the meaning given that term and
similar terms under applicable laws relating to fraudulent transfers and
conveyances in Delaware, Florida, Massachusetts, Nebraska, New Jersey, New York
and Ohio, and relating to federal fraudulent conveyance law as set forth in §
548 of the Bankruptcy Code. For purposes of this definition, the amount of any
contingent liability at any time shall be computed as the amount that, in light
of all of the facts and circumstances existing at such time, represents the
amount that can reasonably be expected to become an actual or matured liability
(irrespective of whether such contingent liabilities meet the criteria for
accrual under Statement of Financial Accounting Standard No. 5).

 

“Special Purpose Entity” means a corporation or limited liability
company whose organizational documents contain limitations on business
activities, incurrence of Indebtedness and creation of Liens.

 

21

 

“Specified Holders” means collectively PharmBay Investors,
L.L.C., The Bay City Capital Fund II, L.P. and The Bay City Capital Fund III,
L.P and their respective Affiliates.

 

“Subsequent Loan” as defined in Section 2.2.

 

“Subsidiary”
means, with respect to any Person, any corporation, partnership, limited
liability company, association, joint venture or other business entity of which
more than 50% of the total voting power of shares of stock or other ownership
interests entitled (without regard to the occurrence of any contingency) to
vote in the election of the Person or Persons (whether directors, managers,
trustees or other Persons performing similar functions) having the power to
direct or cause the direction of the management and policies thereof is at the
time owned or controlled, directly or indirectly, by that Person, or the
accounts of which would be consolidated with those of such Person in its
consolidated financial statements in accordance with GAAP, if such statements
were prepared as of such date, or one or more of the other Subsidiaries of that
Person or a combination thereof; provided, in determining the percentage
of ownership interests of any Person controlled by another Person, no ownership
interest in the nature of a “qualifying share” of the former Person shall be
deemed to be outstanding.

 

“Syndication Agent”
as defined in Section 2.24(a).

 

“Tax” means any present or future tax, levy,
impost, duty, assessment, charge, fee, deduction or withholding of any nature
and whatever called (including interest and penalties), by whomsoever, on
whomsoever and wherever imposed, levied, collected, withheld or assessed; provided,
“Tax on the overall net income” of a Person shall be construed as a
reference to a tax imposed by the jurisdiction in which that Person is
organized or in which that Person’s applicable principal office (and/or, in the
case of a Lender, its lending office) is located on all or part of the net
income (whether worldwide, or only insofar as such income is considered to
arise in or to relate to a particular jurisdiction, or otherwise) of that
Person (and/or, in the case of a Lender, its applicable lending office).

 

“Terminated Lender” as defined in Section 2.23.

 

“Term Loan
Intercreditor Agreement” means an intercreditor and lien
subordination agreement, dated as of the date hereof, between the Collateral
Agent, the First-Lien Collateral Agent and the Second-Lien Collateral Agent,
that provides for the subordination of the Lien of the Collateral Agent on the
Collateral to the First-Lien Collateral Agent’s and the Second-Lien Collateral
Agent’s respective liens, each on terms reasonably satisfactory to the
Collateral Agent and the Requisite Lenders.

 

“Territory”
means the United States.

 

“Third Priority” means, with respect to any Lien purported to
be created in any Collateral pursuant to any Collateral Document, that such
Lien is the only Lien to which such Collateral is subject, other than any
Permitted Lien.

 

“Transaction Costs” means (i) the fees, and (ii) the reasonable
costs and expenses payable by Company or any of Company’s Subsidiaries on or
before the Closing Date in connection with the transactions contemplated by the
Credit Documents.

 

“UCC” means the Uniform Commercial Code (or any
similar or equivalent legislation) as in effect in any applicable jurisdiction.

 

“Waivable Prepayment” as defined in Section 2.15(c)

 

22

 

“Warrant” means each warrant to acquire Capital Stock
of the Company issued pursuant to the Warrant Agreement.

 

“Warrant Agreement” means the Common Stock Purchase Warrant,
dated the date hereof, between the Company and each Lender.

 

“Working Capital Collateral” means the collateral, including (i) all accounts
receivable for goods sold and services rendered by Company or any of Company’s
Subsidiaries, and rents license fees, and “payment intangibles” (as that term
is defined in the UCC now or hereafter in effect) in respect of the foregoing
and all proceeds or any of the foregoing (“Accounts”)
(including, without limitation, all Accounts constituting proceeds of
inventory); (ii) all rights of enforcement and collection, remedies,
guarantees, supporting obligations, letter-of-credit rights and security interests,
in each case, in respect of the Accounts; (iii) all books and records,
information and data evidencing or describing the Accounts, whether compiled or
derived by Company or any of its subsidiaries or to which the Company or any of
its subsidiaries is entitled, in whatever form or medium, that at any time
evidence or contain information relating to any of the Accounts or are
otherwise necessary or helpful in the collection thereof or realization
thereon; (iv) the lockbox where the proceeds of Accounts are deposited
(including any and all funds and other payments deposited therein); (v) all
accessions and additions to, and substitutions and replacements of, any and all
of the foregoing; and (vi) all proceeds and products of the foregoing
(including, without limitation, payment intangibles, as such term is defined in
the UCC), securing the Permitted Working Capital Facility, on which Merrill
Lynch has a Lien pursuant to the Working Capital Facility Security Agreement.

 

“Working Capital
Facility Security Agreement” means the Second Amended and Restated
Security Agreement, dated as of April 13, 2005, between Company and Merrill
Lynch as agent.

 

“Working Capital Intercreditor
Agreement” means an
intercreditor and lien subordination agreement, dated as of the date hereof,
among the Collateral Agent, the First-Lien Collateral Agent, the Second-Lien
Collateral Agent and Merrill Lynch, pursuant to which the Lenders, the
First-Lien Lenders and the Second-Lien Lenders shall agree not to take
enforcement action with respect to the Working Capital Collateral until the
Working Capital Facility shall be paid in full; and otherwise in a form
reasonably satisfactory to the Collateral Agent and the Requisite Lenders.

 

1.2. Accounting Terms. Except as otherwise expressly provided
herein, all accounting terms not otherwise defined herein shall have the
meanings assigned to them in conformity with GAAP. Financial statements and
other information required to be delivered by Company to Lenders pursuant to
Section 5.1(a), 5.1(b) and 5.1(c) shall be prepared in accordance with GAAP as
in effect at the time of such preparation. Subject to the foregoing,
calculations in connection with the definitions, covenants and other provisions
hereof shall utilize accounting principles and policies in conformity with
those used to prepare the Historical Financial Statements.

 

1.3. Interpretation, etc. Any of the terms defined herein may, unless
the context otherwise requires, be used in the singular or the plural,
depending on the reference. References herein to any Section, Appendix,
Schedule or Exhibit shall be to a Section, an Appendix, a Schedule or an
Exhibit, as the case may be, hereof unless otherwise specifically provided. The
use herein of the word “include” or “including”, when following any general statement,
term or matter, shall not be construed to limit such statement, term or matter
to the specific items or matters set forth immediately following such word or
to similar items or matters, whether or not limiting language (such as “without limitation” or “but
not limited to” or words of
similar import) is used with reference thereto, but rather shall be deemed to
refer to all other items or matters that fall within the broadest possible
scope of such general statement, term or matter.

 

23

 

SECTION 2. LOANS

 

2.1. Term Loans.

 

(a) Loans and Commitments. Subject to the
terms and conditions hereof, each Lender severally agrees to make, on the
Closing Date, a Loan to Company in an amount equal to its pro rata portion of
$20 million shown on Appendix A, such that the total Loans of all Lenders made
on the Closing Date shall be $20 million. Any amount borrowed under this
Section 2.1(a) and subsequently repaid or prepaid may not be reborrowed. Subject
to Sections 2.13(a) and 2.14, all amounts owed hereunder with respect to the
Loans shall be paid in full no later than the Maturity Date. Each Lender’s Loan
made on the Closing Date shall automatically reduce such Lender’s Commitment in
the principal amount funded. For the avoidance of doubt, the making of a Loan
under this Section 2.1 and the consequent termination of such Lender’s
Commitment on the Closing Date do not limit the obligation of such Lender to
make a PIK Loan under Section 2.8(b).

 

(b) Borrowing Mechanics for Term Loans on the
Closing Date.

 

(i)
Company shall deliver to Administrative Agent a fully executed Funding Notice
not later than 1:00 p.m. (New York City time) on the Closing Date. Promptly
upon receipt by Administrative Agent of such Funding Notice, Administrative
Agent shall notify each Lender of the proposed borrowing.

 

(ii)
Upon satisfaction or waiver of the conditions precedent specified in Section
3.1, each Lender shall make its Loan available to Company not later than 12:00
p.m. (New York City time) on the Closing Date, by wire transfer of same day
funds in Dollars, to the account of Company as designated in the Funding Notice
by Company.

 

2.2. Subsequent Loans.

 

(a) Subsequent Loan Commitments. During the
Commitment Period, subject to the terms and conditions hereof, each Lender
severally agrees to make Loans (each a “Subsequent
Loan”) to Company in an aggregate amount up to but not exceeding
such Lender’s Commitment; provided, that after giving effect to
the making of any Subsequent Loans in no event shall the aggregate Loan
Exposure of all Lenders exceed the aggregate Commitments of all Lenders.
Amounts borrowed pursuant to this Section 2.2(a) and subsequently repaid or
prepaid may not be reborrowed. Each Lender’s Commitment shall expire on the
Commitment Termination Date.

 

(b) Borrowing Mechanics for Subsequent Loans.

 

(i)
Except in the case of a Subsequent Loan made under clause (b)(ii)(B) below, the
aggregate amount of Subsequent Loans made on any Credit Date after the Closing
Date shall be a minimum amount of $5,000,000 and integral multiples of
$1,000,000 thereof in excess of such amount.

 

(ii)
Whenever (A) Company desires that Lenders make a Subsequent Loan after the
Closing Date, or (B) the average daily balance over a consecutive 30-day period
(measured at the end of each month beginning with May 2005) of the Company’s
aggregate total

 

24

 

for each day during such
period of the sum of (1) Cash then held by Company plus (2) the lesser of (x)
the borrowing base availability under the Permitted Working Capital Facility
minus the total loans outstanding thereunder and (y) the aggregate commitments
of the lenders under the Permitted Working Capital Facility minus the total
loans outstanding thereunder is less than $20,000,000, the Company shall
promptly deliver to Administrative Agent a fully executed, irrevocable, Funding
Notice no later than 1:00 P.M. (New York City time) three Business Days prior
to the proposed Credit Date; it being understood that any funding required to
be requested by Company under clause (ii)(B) hereto shall not be required to be
more than the amount necessary to satisfy such $20,000,000 threshold. Promptly
upon receipt by Administrative Agent of such funding notice, Administrative
Agent shall notify each lender of the proposed borrowing.

 

(iii)
Upon satisfaction or waiver of the conditions precedent specified herein, each Lender
shall make its Subsequent Loan available to Administrative Agent not later than
12:00 p.m. (New York City time) on the applicable Credit Date, by wire transfer
of same day funds in Dollars, at the Principal Office. Upon satisfaction or
waiver of the conditions precedent specified herein, Administrative Agent shall
make the proceeds of such Subsequent Loans available to Company on the
applicable Credit Date by causing an amount of same day funds in Dollars equal
to proceeds of all such Subsequent Loans received by Administrative Agent from
Lenders to be credited to the account of Company as designated in the Funding
Notice to Administrative Agent by Company. Notwithstanding the foregoing, if
GSCP is acting as Administrative Agent or otherwise upon request of the
Administrative Agent furnished to each Lender not later than 4:00 p.m. (New
York City time) on the Business Day preceding the applicable Credit Date, each
Lender shall make its Subsequent Loan directly available to Company not later
than 12:00 p.m. (New York City time) on the applicable Credit Date in the same
manner as is specified in Section 2.1(b)(ii) with respect to Loans funded on
the Closing Date.

 

2.3. Reduction of Commitments. Each Subsequent Loan made on or after the
Closing Date by a Lender shall automatically reduce such Lender’s Commitment in
the principal amount funded.

 

2.4. PIK Loans.  Subject
to the terms hereof, each Lender severally agrees to make, pursuant to Section
2.8(b), on each Interest Compounding Date, a PIK Loan to Company in an amount
equal to the Lender’s respective Pro Rata Share of all interest accrued on
Loans during the Interest Period ending on such Interest Compounding Date (such
loans, “PIK Loans”). An amount
borrowed under this Section 2.4 and subsequently repaid or prepaid may not be
reborrowed. Subject to Section 2.13(a) and 2.14, all amounts owed hereunder
with respect to the Loans shall be paid in full no later than the Maturity
Date.

 

2.5. Pro Rata Shares; Availability
of Funds.

 

(a) Pro Rata Shares. All Loans shall be made,
and all participations purchased under Section 2.17, by Lenders simultaneously
and proportionately to their respective Pro Rata Shares, it being understood
that no Lender shall be responsible for any default by any other Lender in such
other Lender’s obligation to make a Loan requested under this Agreement or
purchase a participation required hereby under Section 2.17 nor shall any
Commitment of any Lender be increased or decreased as a result of a default by
any other Lender in such other Lender’s obligation to make a Loan requested
under this Agreement or purchase a participation required hereby under Section
2.17.

 

(b) Availability of Funds. The provisions of
this Section 2.5(b) shall apply only in the case of Subsequent Loans to be
funded through the Administrative Agent pursuant to the first two sentences of
Section 2.2(b)(iii). Unless Administrative Agent shall have been notified by
any Lender

 

25

 

prior
to the applicable Credit Date that such Lender does not intend to make
available to Administrative Agent the amount of such Lender’s Loan requested on
such Credit Date, Administrative Agent may assume that such Lender has made
such amount available to Administrative Agent on such Credit Date, or
Administrative Agent shall make available to Company a corresponding amount on
such Credit Date. If such corresponding amount is not in fact made available to
Administrative Agent by such Lender but Administrative Agent has made such
amount available to Company, Administrative Agent shall be entitled to recover
such corresponding amount on demand from such Lender together with interest
thereon, for each day from such Credit Date until the date such amount is paid
to Administrative Agent, at the customary rate set by Administrative Agent for
the correction of errors among banks for three Business Days and thereafter at
the Interest Rate. If Administrative Agent has made such amount available to
Company but such Lender does not pay such corresponding amount forthwith upon
Administrative Agent’s demand therefor, Administrative Agent shall promptly
notify Company and Company shall immediately pay such corresponding amount to
Administrative Agent together with interest thereon, for each day from such Credit
Date until the date such amount is paid to Administrative Agent, at the
Interest Rate. Nothing in this Section 2.5(b) shall be deemed to relieve any
Lender from its obligation to fulfill its Commitment hereunder or to prejudice
any rights that Company may have against any Lender as a result of any default
by such Lender hereunder.

 

2.6. Use of Proceeds. The proceeds of the Loans made pursuant to
Section 2.1 and 2.2 shall be used by Company for general corporate purposes,
working capital and Permitted Acquisitions, and to pay fees and expenses
related thereto. No portion of the proceeds of any Credit Extension shall be
used in any manner that causes or might cause such Credit Extension or the
application of such proceeds to violate Regulation T, Regulation U or
Regulation X of the Board of Governors of the Federal Reserve System or any
other regulation thereof or to violate the Exchange Act.

 

2.7. Evidence of Debt; Register;
Lenders’ Books and Records; Notes.

 

(a) Lenders’ Evidence of Debt. Each Lender
shall maintain on its internal records an account or accounts evidencing the
Obligations of Company to such Lender, including the amounts of the Loans made
or deemed made by it, accrued and capitalized interest and fees thereon and
each repayment and prepayment in respect thereof. Any such recordation shall be
conclusive and binding on Company, absent manifest error; provided, that
the failure to make any such recordation, or any error in such recordation,
shall not affect any Lender’s Commitment or Company’s Obligations in respect of
any applicable Loans; and provided, further, in the event of any
inconsistency between the Register and any Lender’s records, the recordations
in the Register (if applicable) shall govern.

 

(b) Register. Administrative Agent shall
maintain at the Principal Office a register for the recordation of the names
and addresses of Lenders and the Commitments and Loans of each Lender from time
to time (the “Register”). The
Register shall be available for inspection by Company or any Lender at any
reasonable time and from time to time upon reasonable prior notice.
Administrative Agent shall record in the Register the Commitments and the
Loans, and each repayment or prepayment in respect of the principal amount of
the Loans, and any such recordation shall be conclusive and binding on Company
and each Lender, absent manifest error; provided, failure to make any
such recordation, or any error in such recordation, shall not affect any Lender’s
Commitment or Company’s Obligations in respect of any Loan. Company hereby
designates Administrative Agent to serve as Company’s agent solely for purposes
of maintaining the Register as provided in this Section 2.7, and Company hereby
agrees that, to the extent Administrative Agent serves in such capacity, Administrative
Agent and its officers, directors, employees, agents and affiliates shall
constitute “Indemnitees.”

 

26

 

(c) Notes. If so requested by any Lender by
written notice to Company (with a copy to Administrative Agent) at least two
Business Days prior to the applicable Credit Date, or at any time thereafter,
Company shall execute and deliver to such Lender (and/or, if applicable and if
so specified in such notice, to any Person who is an assignee of such Lender
pursuant to Section 10.6) on the applicable Credit Date (or, if such notice is
delivered after the applicable Credit Date, promptly after Company’s receipt of
such notice) a Note or Notes to evidence such Lender’s Loans.

 

(d) PIK Notes. If so requested by any Lender
by written notice to Company (with a copy to Administrative Agent) at least two
Business Days prior to an Interest Compounding Date, or at any time thereafter,
Company shall execute and deliver to such Lender (and/or, if applicable and if
so specified in such notice, to any Person who is an assignee of such Lender
pursuant to Section 10.6) on such Interest Compounding Date (or, if such notice
is delivered after such Interest Compounding Date, promptly after Company’s
receipt of such notice) a PIK Note, substantially in the form of Exhibit B-2
attached hereto (each, a “PIK Note”)
and pursuant to Section 2.8(b), to evidence such Lender’s PIK Loans.

 

2.8. Interest on Loans.

 

(a) Except as otherwise set forth herein, each Loan
(including, for the avoidance of doubt, each PIK Loan) shall bear interest on
the unpaid principal amount thereof from the date made or deemed made through
repayment (whether by acceleration or otherwise) thereof at a rate per annum
equal to 14.00% (the “Interest Rate”).
Such interest shall accrue on each Loan during each Interest Period.

 

(b) On each Interest Compounding Date, interest
accrued during the immediately preceding Interest Period on any Loan shall
automatically be deemed to be a PIK Loan made by the applicable Lender
hereunder evidenced by an entry in accordance with Section 2.7(a) and, if so
elected in writing by such Lender pursuant to Section 2.7(d), through the
issuance to such Lender, on or prior to such Interest Compounding Date, of a
PIK Note with an aggregate principal amount equal to 100% of the amount of
interest accrued on the Loan Exposure of such Lender during the Interest Period
ending on the Business Day immediately preceding such Interest Compounding Date
(such interest, “PIK Interest”).

 

(c) Each PIK Loan representing PIK Interest shall be
due and payable on the Maturity Date in cash unless earlier prepaid pursuant to
Section 2.13 or 2.14.

 

(d) Interest accrued pursuant to Section 2.8(a)
shall be computed on the basis of a 365-day or 366-day year, as the case may
be, for the actual number of days elapsed in the period during which it
accrues. In computing interest on any Loan, the date of the making or deemed
making of such Loan or the first day of an Interest Period applicable to such
Loan shall be included, and the date of payment of such Loan or the expiration
date of an Interest Period applicable to such Loan shall be excluded; provided,
if a Loan is repaid on the same day on which it is made, one day’s interest
shall be paid on that Loan.

 

(e) Except as otherwise set forth herein, interest
on each Loan shall be payable in arrears (i) upon any prepayment of that Loan,
whether voluntary or mandatory, to the extent accrued on the amount being
prepaid and (ii) on the Maturity Date. The interest payable on any prepayment
of a PIK Loan shall equal the interest accrued on the principal amount thereof
paid or prepaid from and including the most recent Interest Compounding Date to
but excluding the date of payment.

 

2.9. [RESERVED].

 

27

 

2.10. Default Interest. Upon the occurrence and during the
continuance of an Event of Default, (i) the principal amount of all Loans
outstanding, and (ii) to the extent permitted by applicable law, any interest,
fees or other amounts (other than principal) which are not paid, or in the case
of interest, accrued, when due, whether by acceleration or otherwise, shall
thereafter bear interest (including post-petition interest in any proceeding
under the Bankruptcy Code or other applicable bankruptcy laws (including any
such interest which, but for the filing of a petition in bankruptcy, would have
accrued, whether or not a claim is allowed for such interest in the related
bankruptcy proceeding)) and accrue at a rate that is 2% per annum in excess of
the interest rate otherwise payable hereunder, with respect to the applicable
Loans (or, in the case of any such fees and other amounts, at a rate which is
2% per annum in excess of the interest rate otherwise payable hereunder), provided
that such payment is not in violation of the First-Lien Term Loan Agreement or
the Second-Lien Term Loan Agreement; it being understood that PIK Interest does
not constitute a default. Payment or acceptance of the increased rates of
interest provided for in this Section 2.10 is not a permitted alternative to
timely payment and shall not constitute a waiver of any Event of Default or
otherwise prejudice or limit any rights or remedies of Administrative Agent or
any Lender.

 

2.11. Fees. Company agrees to pay to Agents such fees and
expenses in the amounts and at the times separately agreed upon in writing.

 

2.12. [RESERVED].

 

2.13. Voluntary Prepayments.

 

(a) Voluntary Prepayments.

 

(i)
The Company may not voluntarily prepay Loans prior to the first anniversary of
the Closing Date.

 

(ii)
Any time and from time to time after the first anniversary of the Closing Date,
provided, there are no amounts outstanding under the First-Lien Term
Loan or the Second-Lien Term Loan, and any permitted refinancings thereof:
Company may prepay any such Loans on any Business Day in whole or in part, in
an aggregate minimum amount of $5,000,000 and integral multiples of $1,000,000
in excess of that amount.

 

(iii)
All such prepayments shall be made upon not less than one Business Day’s prior
written or telephonic notice, given to Administrative Agent by 11:00 a.m. (New
York City time) on the date required and, if given by telephone, promptly
confirmed in writing to Administrative Agent (and Administrative Agent will
notify each Lender). Upon the giving of any such notice, the principal amount
of the Loans specified in such notice shall become due and payable on the
prepayment date specified therein. Any such voluntary prepayment shall be
applied as specified in Section 2.15(a).

 

(iv)
[Reserved].

 

(b) [Reserved].

 

(c) [Reserved].

 

(d) Prepayment Premium. In the event that for
any reason any Loans are prepaid in whole or in part after the first
anniversary of the Closing Date and prior to the Maturity Date, whether

 

28

 

pursuant
to this Section 2.13 or otherwise, except as provided in Sections 2.14 and
2.23, Company shall pay to Lenders having Loan Exposure a call premium equal to
(i) four percent of the principal amount prepaid, for all prepayments made at
any time after the first anniversary of the Closing Date but on or prior to the
second anniversary of the Closing Date, and (ii) two percent of the principal
amount prepaid, for all prepayments made at any time after the second anniversary
of the Closing Date but on or prior to the third anniversary of the Closing
Date. Prepayments after the third anniversary of the Closing Date through the
Maturity Date shall not have any call premiums.

 

2.14. Mandatory Prepayments. In the event that there are no amounts
outstanding under the First-Lien Term Loan and the Second-Lien Term Loan, and
any permitted refinancings thereof, or the Second-Lien Lenders decline an offer
of prepayment in accordance with the terms of the Second-Lien Term Loan Agreement,
and subject to each Lender’s option to waive such payment pursuant to Section
2.15(c), the Company shall make mandatory payments as follows:

 

(a) Asset Sales. No later than the second
Business Day following the date of receipt by Company or any of its
Subsidiaries of any Net Asset Sale Proceeds, Company shall prepay the Loans in
an aggregate amount equal to such Net Asset Sale Proceeds; provided, so
long as no Event of Default shall have occurred and be continuing, Company
shall have the option, directly or through one or more of its Guarantor
Subsidiaries (other than RP Sub No. 1), to invest, within 180 Business Days
after receipt thereof, any Net Asset Sale Proceeds, up to an aggregate amount
for all such invested Net Asset Sale Proceeds after the Closing Date not to
exceed the Aggregate Proceeds Threshold, in productive assets of the general
type used in the business of Company and its Subsidiaries (“Productive Assets”); provided, further,
that if aggregate Net Asset Sale Proceeds plus Cash proceeds relating to
Capital Stock referenced in Sections 2.14(c)(ii) and 2.14(c)(iii) from the
Closing Date through the applicable date of determination do not exceed
$3,000,000, Company shall have no obligation to prepay the Loans or reinvest
the proceeds thereof; provided, further, that for the first two
Fiscal Quarters following the Closing Date, all proceeds from a sale of Axid® OS that shall not require a mandatory prepayment pursuant to the
foregoing shall (i) be held in escrow until such time that Company has
delivered a duly executed and completed Compliance Certificate certifying
compliance with the covenants under this Agreement for the first two Fiscal
Quarters following the Closing Date, and (ii) upon delivery of such Compliance
Certificates, such escrowed proceeds shall be released to Company for
reinvestment in Productive Assets. Otherwise, in the event such Compliance
Certificate prerequisite has not been satisfied, the escrowed proceeds shall
remain in escrow pending Requisite Lender request for the application of such
proceeds to the payment of Loans or a waiver permitting proceeds to be released
from escrow and returned to Company.

 

(b) Insurance/Condemnation Proceeds. No later
than the second Business Day following the date of receipt by Company or any of
its Subsidiaries, or Administrative Agent as loss payee, of any Net
Insurance/Condemnation Proceeds, Company shall prepay the Loans in an aggregate
amount equal to such Net Insurance/Condemnation Proceeds; provided, so
long as no Event of Default shall have occurred and be continuing, Company
shall have the option, directly or through one or more of its Subsidiaries, to
invest, within 180 Business Days after receipt thereof, any Net
Insurance/Condemnation Proceeds, up to an aggregate amount for all such
invested Net Insurance/Condemnation Proceeds after the Closing Date not to
exceed $7,500,000, in Productive Assets, which investment may include the
repair, restoration or replacement of the applicable assets thereof.

 

(c) Issuance of Equity Securities. Company
shall prepay the Loans no later than the second Business Day following receipt
by Company or any of its Subsidiaries of all Cash proceeds (net of underwriting
discounts and commissions and other reasonable costs and expenses associated
therewith, including reasonable legal fees and expenses) received from a
capital contribution to, or the issuance of any Capital Stock, except for (i)
equity securities issued in an initial public offering, provided, that
any

 

 

29

 

net
Cash proceeds from an initial public offering not applied towards prepayment of
the Loans are invested in Productive Assets; (ii) Capital Stock issued in
connection with warrants outstanding as of December 31, 2004 (as specified on
Schedule 2.14(c)) of Company or any of its Subsidiaries; (iii) Capital Stock or
options issued pursuant to any employee stock, arrangement, stock option
compensation plan, employment agreement or similar such plans; and (iv) Capital
Stock and warrants issued to Third-Lien Lenders under the Third-Lien Term Loan
Agreement; provided, further, that if net Cash proceeds from
Capital Stock referenced in subclause (ii) and (iii) in this clause (c) plus
the aggregate Net Asset Sales Proceeds exceed $3,000,000, all net Cash proceeds
from Capital Stock referenced in subclause (ii) and (iii) in this clause (c) in
excess of such $3,000,000 threshold shall be invested in Productive Assets or
applied towards a prepayment of the Loans.

 

(d) Issuance of Debt. On the date of receipt
by Company or any of its Subsidiaries of any Cash proceeds from the incurrence
of any Indebtedness of Company or any of its Subsidiaries (other than with
respect to any Indebtedness permitted to be incurred pursuant to Section 6.1),
Company shall prepay the Loans in an aggregate amount equal to 100% of such
proceeds, net of underwriting discounts and commissions and other reasonable
costs and expenses associated therewith, including reasonable legal fees and
expenses.

 

(e) Consolidated Excess Cash Flow. In the
event that there shall be Consolidated Excess Cash Flow for any Fiscal Year,
Company shall, no later than 105 days after the end of such Fiscal Year, prepay
the Loans in an aggregate amount equal to 50% of such Consolidated Excess Cash
Flow.

 

(f) Prepayment Certificate. Concurrently with
any prepayment of the Loans pursuant to Sections 2.14(a) through 2.14(d),
Company shall deliver to Administrative Agent a certificate of an Authorized
Officer demonstrating the calculation of the amount of the applicable net
proceeds. In the event that Company shall subsequently determine that the
actual amount received exceeded the amount set forth in such certificate,
Company shall promptly make an additional prepayment of the Loans in the amount
of such excess and Company shall concurrently therewith deliver to
Administrative Agent a certificate of an Authorized Officer demonstrating the
derivation of such excess.

 

(g) Prepayment Premium. No mandatory
prepayments shall be made prior to the first anniversary of the Closing Date or
prior to the payment in full of all amounts under the First-Lien Term Loan. In
the event that for any reason any Loans are prepaid in whole or in part after
the first anniversary of the Closing Date and prior to the Maturity Date,
whether pursuant to this Section 2.14 or otherwise, except as provided in
Section 2.23, Company shall pay to Lenders having Loan Exposure a call premium
equal to (i) four percent of the principal amount prepaid, for all prepayments
made at any time after the first anniversary of the Closing Date but on or
prior to the second anniversary of the Closing Date, and (ii) two percent of
the principal amount prepaid, for all prepayments made at any time after the
second anniversary of the Closing Date but on or prior to the third anniversary
of the Closing Date. Prepayments after the third anniversary of the Closing
Date through the Maturity Date shall not have any call premiums.

 

(h) First-Year Proceeds. Notwithstanding the
foregoing in clauses (a) – (e) above, in the event the Company would, but for
the requirement in the first sentence of Section 2.14(g), be required to prepay
the Loans pursuant to Sections 2.14(a) through 2.14(e) above prior to the first
anniversary of the Closing Date, Company shall not make any prepayments and
shall instead transfer the proceeds otherwise required to be prepaid to the
Administrative Agent, who shall hold all such funds sufficient to pay the
principal amount of such prepayment in escrow in an interest-bearing account
until (i) the first Business Day after the first anniversary of the Closing
Date, or (ii) such date that a Lender requests payment, in writing, of the
proceeds; and on that date Administrative Agent shall apply all amounts (or the
requested

 

 

30

 

amounts,
as applicable) as mandatory prepayments pursuant to Section 2.15(b) with the
applicable call premiums pursuant to Section 2.14(g) to be paid by the Company
as if such prepayments were made on the first Business Day after the first
anniversary of the Closing Date. Any interest earned on amounts held in escrow
shall be credited to the Company and Company may apply such interest towards
any call premiums or interest due on any prepayments. Pending the
Administrative Agent’s application of funds to make such prepayment, such funds
shall be held as part of the Collateral. The Administrative Agent shall give
Company and each lender three (3) Business Days’ prior written or telephonic
notice of the date on which such funds will be applied to prepayments of the
Loans. Company shall pay interest on the amount so prepaid (until applied to
the Loans) pursuant to Sections 2.16(a) and (b).

 

2.15. Application of Prepayments.

 

(a) Application of Voluntary Prepayments. Any
prepayment of any Loan pursuant to Section 2.13 shall be applied to prepay
Loans of the Lenders in accordance with their respective Pro Rata Shares.

 

(b) Application of Mandatory Prepayments. Any
amount required to be paid pursuant to Sections 2.14(a) through 2.14(e) shall
be applied to prepay Loans of the Lenders in accordance with their respective
Pro Rata Shares.

 

(c) Waivable Mandatory Prepayment. Anything
contained herein to the contrary notwithstanding, so long as any Loans are
outstanding, in the event the Company is required to make a mandatory
prepayment (a “Waivable Prepayment”)
of the Loans whether pursuant to Section 2.14 herein or as a result of an
exercise by any First-Lien Lender and any Second-Lien Lender of its right to
waive a mandatory prepayment pursuant to the First-Lien Term Loan Agreement and
the Second-Lien Term Loan Agreement, respectively, then Company shall, within
two Business Days of knowledge of such Waivable Prepayment, notify
Administrative Agent in writing of the amount of such prepayment, and Administrative
Agent shall promptly thereafter notify each Lender holding an outstanding Loan
of the amount of such Lender’s Pro Rata Share of such Waivable Prepayment and
such Lender’s option to refuse such amount. Each such Lender may exercise such
option by giving written notice, or telephonic notice followed within one
Business Day with written notice, to Company and Administrative Agent of its
election to do so, on or before noon New York time on the second Business Day
following receipt of the Company’s notice (the “Required Prepayment Date”), it being understood that any
Lender that does not notify Company and Administrative Agent of its election to
exercise such option by noon New York time on the Required Prepayment Date
shall be deemed to have elected, as of such date, not to exercise such option.
On the Required Prepayment Date, Company shall pay to Administrative Agent an
amount equal to that portion of the Waivable Prepayment payable to those
Lenders that have elected not to exercise such option to prepay the Loans of
such Lenders in accordance with Section 2.15(b). Such portion of the Waivable
Prepayment not payable due to the election by any Lender to waive rights to the
Waivable Prepayment shall be offered to any Lender, who shall have the right to
receive such Lender’s pro rata share (as between those non-waiving Lenders) of
any additional amounts of the Waivable Prepayment waived by other Lenders; provided,
however, that no Lender shall receive or be paid any amount in excess of
such Lender’s Loan Exposure. In the event all Lenders have waived their rights
to receive the Waivable Prepayment, the Company shall retain such portion of
the Waivable Prepayment not payable due to the election by Lenders to waive
their rights to the Waivable Prepayment and such portion may be used for
general corporate or other working capital purposes.

 

(d) [Reserved].

 

31

 

2.16. General Provisions Regarding
Payments.

 

(a) All payments by Company of principal of the
Loans, interest, fees and other Obligations shall be made in Dollars in same
day funds, without defense, setoff or counterclaim, free of any restriction or
condition, and delivered to Administrative Agent not later than 1:00 p.m. (New
York City time) on the date due at the Principal Office for the account of
Lenders.

 

(b) All payments in respect of the principal amount
of any Loan shall be accompanied by payment of accrued interest on the
principal amount being repaid or prepaid.

 

(c) Administrative Agent shall promptly distribute
to each Lender at such address as such Lender shall indicate in writing, such
Lender’s applicable Pro Rata Share of all payments and prepayments of principal
and interest due hereunder, together with all other amounts due thereto,
including, without limitation, all fees payable with respect thereto, to the
extent received by Administrative Agent.

 

(d) [Reserved].

 

(e) [Reserved].

 

(f) Company hereby authorizes Administrative Agent
to charge Company’s accounts (if any) with Administrative Agent in order to
cause timely payment to be made to Administrative Agent of all principal,
interest, fees and expenses due hereunder (subject to sufficient funds being
available in its accounts for that purpose).

 

(g) Administrative Agent may deem, at Administrative
Agent’s sole discretion, any payment by or on behalf of Company hereunder that
is not made in same day funds prior to 1:00 p.m. (New York City time) on the
due date thereof at the Principal Office to be a nonconforming payment. Any
such payment shall not be deemed to have been received by Administrative Agent
until the later of (i) the time such funds become available funds, and (ii) the
applicable next Business Day. Administrative Agent shall give prompt telephonic
notice to Company and each applicable Lender (confirmed in writing) if any
payment is nonconforming. Any nonconforming payment may constitute or become a
Default or Event of Default in accordance with the terms of Section 8.1(a).
Interest shall continue to accrue on any principal as to which a nonconforming
payment is made until such funds become available funds (but in no event less
than the period from the date of such payment to the next succeeding applicable
Business Day) at the rate determined pursuant to Section 2.10 from the date such
amount was due and payable until the date such amount is paid in full.

 

(h) If an Event of Default shall have occurred and
not otherwise been waived, and the maturity of the Obligations shall have been
accelerated pursuant to Section 8.1, all payments or proceeds received by
Agents hereunder in respect of any of the Obligations, shall be applied first, to the payment of all reasonable
costs and expenses of such sale, collection or other realization, including
reasonable compensation to the Collateral Agent and its agents and counsel, and
all other reasonable expenses, liabilities and advances made or incurred by the
Collateral Agent in connection therewith, and all amounts for which the
Collateral Agent is entitled to indemnification hereunder (in its capacity as
the Collateral Agent and not as a Lender) and all advances made by the
Collateral Agent hereunder for the account of the applicable Grantor, and to
the payment of all costs and expenses paid or incurred by the Collateral Agent
in connection with the exercise of any right or remedy hereunder or under the
Credit Agreement, all in accordance with the terms hereof or thereof; second, to the extent of any excess of
such proceeds, to the payment of all other Obligations for the ratable benefit
of the Lenders; and third, to the
extent of any excess of such proceeds, to the payment to, or upon the order of,
Company or Guarantor Subsidiary or to whosoever may be lawfully entitled to
receive the same or as a court of competent jurisdiction may direct.

 

 

32

 

Notwithstanding
the foregoing in this Section 2.7, at any time to the extent GSCP remains as
Administrative Agent, all payments made by Company in accordance with this
Section 2.7 shall be made directly to each Lender, and not to the
Administrative Agent.

 

2.17. Ratable Sharing. Lenders hereby agree among themselves that,
except as otherwise provided in Section 2.16(h), if any of them shall, whether
by voluntary payment, through the exercise of any right of set-off or banker’s
lien, by counterclaim or cross action or by the enforcement of any right under
the Credit Documents or otherwise, or as adequate protection of a deposit
treated as cash collateral under the Bankruptcy Code, receive payment or
reduction of a proportion of the aggregate amount of principal, interest, fees
and other amounts then due and owing to such Lender hereunder or under the
other Credit Documents (collectively, the “Aggregate
Amounts Due” to such Lender) which is greater than the proportion
received by any other Lender in respect of the Aggregate Amounts Due to such
other Lender, then the Lender receiving such proportionately greater payment
shall (a) notify Administrative Agent and each other Lender of the receipt of
such payment and (b) apply a portion of such payment to purchase participations
(which it shall be deemed to have purchased from each seller of a participation
simultaneously upon the receipt by such seller of its portion of such payment)
in the Aggregate Amounts Due to the other Lenders so that all such recoveries
of Aggregate Amounts Due shall be shared by all Lenders in proportion to the
Aggregate Amounts Due to them; provided, if all or part of such
proportionately greater payment received by such purchasing Lender is thereafter
recovered from such Lender upon the bankruptcy or reorganization of Company or
otherwise, those purchases shall be rescinded and the purchase prices paid for
such participations shall be returned to such purchasing Lender ratably to the
extent of such recovery, but without interest. Company expressly consents to
the foregoing arrangement and agrees that any holder of a participation so
purchased may exercise any and all rights of banker’s lien, set-off or
counterclaim with respect to any and all monies owing by Company to that holder
with respect thereto as fully as if that holder were owed the amount of the
participation held by that holder.

 

2.18. [RESERVED].

 

2.19. Increased Costs; Capital
Adequacy.

 

(a) Compensation For Increased Costs and Taxes.
Subject to the provisions of Section 2.20 (which shall be controlling with
respect to the matters covered thereby), in the event that any Lender shall
reasonably determine (which determination shall, absent manifest error, be
final and conclusive and binding upon all parties hereto) that any law, treaty
or governmental rule, regulation or order, or any change therein or in the
interpretation, administration or application thereof (including the
introduction of any new law, treaty or governmental rule, regulation or order),
or any determination of a court or governmental authority, in each case that
becomes effective after the date hereof, or compliance by such Lender with any
guideline, request or directive issued or made after the date hereof by any
central bank or other governmental or quasi-governmental authority (whether or
not having the force of law): (i) subjects such Lender (or its applicable
lending office) to any additional Tax (other than any Tax on the overall net
income of such Lender) with respect to this Agreement or any of the other
Credit Documents or any of its obligations hereunder or thereunder or any
payments to such Lender (or its applicable lending office) of principal,
interest, fees or any other amount payable hereunder; (ii) imposes, modifies or
holds applicable any reserve (including any marginal, emergency, supplemental,
special or other reserve), special deposit, compulsory loan, FDIC insurance or
similar requirement against assets held by, or deposits or other liabilities in
or for the account of, or advances or loans by, or other credit extended by, or
any other

 

 

33

 

acquisition
of funds by, any office of such Lender; or (iii) imposes any other condition
(other than with respect to a Tax matter) on or affecting such Lender (or its
applicable lending office); and the result of any of the foregoing is to
increase the cost to such Lender of agreeing to make, making or maintaining
Loans hereunder or to reduce any amount received or receivable by such Lender
(or its applicable lending office) with respect thereto; then, in any such
case, Company shall promptly pay to such Lender, upon receipt of the statement
referred to in the next sentence, such additional amount or amounts (in the
form of an increased rate of, or a different method of calculating, interest or
otherwise as such Lender in its sole discretion shall determine) as may be
necessary to compensate such Lender for any such increased cost or reduction in
amounts received or receivable hereunder. Such Lender shall deliver to Company
(with a copy to Administrative Agent) a written statement, setting forth in
reasonable detail the basis for calculating the additional amounts owed to such
Lender under this Section 2.19(a), which statement shall be conclusive and
binding upon all parties hereto absent manifest error.

 

(b) Capital Adequacy Adjustment. In the event
that any Lender shall have reasonably determined that the adoption,
effectiveness, phase-in or applicability after the Closing Date of any law,
rule or regulation (or any provision thereof) regarding capital adequacy, or
any change therein or in the interpretation or administration thereof by any
Governmental Authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender (or its
applicable lending office) with any guideline, request or directive regarding
capital adequacy (whether or not having the force of law) of any such
Governmental Authority, central bank or comparable agency, has or would have
the effect of reducing the rate of return on the capital of such Lender or any
corporation controlling such Lender as a consequence of, or with reference to,
such Lender’s Loans or other obligations hereunder with respect to the Loans to
a level below that which such Lender or such controlling corporation could have
achieved but for such adoption, effectiveness, phase-in, applicability, change
or compliance (taking into consideration the policies of such Lender or such controlling
corporation with regard to capital adequacy), then from time to time, within
five Business Days after receipt by Company from such Lender of the statement
referred to in the next sentence, Company shall pay to such Lender such
additional amount or amounts as will compensate such Lender or such controlling
corporation on an after-tax basis for such reduction. Such Lender shall deliver
to Company (with a copy to Administrative Agent) a written statement, setting
forth in reasonable detail the basis for calculating the additional amounts
owed to Lender under this Section 2.19(b), which statement shall be conclusive
and binding upon all parties hereto absent manifest error.

 

2.20. Taxes; Withholding, etc.

 

(a) Payments to Be Free and Clear. All sums payable
by any Credit Party hereunder and under the other Credit Documents shall
(except to the extent required by law) be paid free and clear of, and without
any deduction or withholding on account of, any Tax (other than a Tax on the
overall net income of any Lender) imposed, levied, collected, withheld or
assessed by or within the United States of America or any political subdivision
in or of the United States of America or any other jurisdiction from or to
which a payment is made by or on behalf of any Credit Party or by any
federation or organization of which the United States of America or any such
jurisdiction is a member at the time of payment.

 

(b) Withholding of Taxes. If any Credit Party
or any other Person is required by law to make any deduction or withholding on
account of any such Tax from any sum paid or payable by any Credit Party to
Administrative Agent or any Lender under any of the Credit Documents: (i)
Company shall notify Administrative Agent of any such requirement or any change
in any such requirement as soon as practicable after Company becomes aware of
it; (ii) Company shall pay any such Tax before the date on which penalties
attach thereto, such payment to be made (if the liability to pay is imposed on
any Credit Party) for its own account or (if that liability is imposed on
Administrative Agent or such Lender,

 

 

34

 

as
the case may be) on behalf of and in the name of Administrative Agent or such
Lender; (iii) the sum payable by such Credit Party in respect of which the
relevant deduction, withholding or payment is required shall be increased to
the extent necessary to ensure that, after the making of that deduction,
withholding or payment, Administrative Agent or such Lender, as the case may
be, receives on the due date a net sum equal to what it would have received had
no such deduction, withholding or payment been required or made; and (iv)
within thirty days after paying any sum from which it is required by law to
make any deduction or withholding, and within thirty days after the due date of
payment of any Tax which it is required by clause (ii) above to pay, Company
shall deliver to Administrative Agent evidence satisfactory to the other
affected parties of such deduction, withholding or payment and of the
remittance thereof to the relevant taxing or other authority; provided, no such
additional amount shall be required to be paid to any Lender under clause (iii)
above except to the extent that any change after the date hereof (in the case
of each Lender listed on the signature pages hereof on the Closing Date) or
after the effective date of the Assignment Agreement pursuant to which such
Lender became a Lender (in the case of each other Lender) in any such
requirement for a deduction, withholding or payment as is mentioned therein
shall result in an increase in the rate of such deduction, withholding or
payment from that in effect at the date hereof or at the date of such
Assignment Agreement, as the case may be, in respect of payments to such
Lender.

 

(c) Evidence of Exemption From U.S. Withholding
Tax. Each Lender that is not a United States Person (as such term is
defined in Section 7701(a)(30) of the Internal Revenue Code) for United States
federal income tax purposes (a “Non-US Lender”)
shall deliver to Administrative Agent for transmission to Company, on or prior
to the Closing Date (in the case of each Lender listed on the signature pages
hereof on the Closing Date) or on or prior to the date of the Assignment
Agreement pursuant to which it becomes a Lender (in the case of each other
Lender), and at such other times as may be necessary in the determination of
Company or Administrative Agent (each in the reasonable exercise of its
discretion), (i) two original copies of Internal Revenue Service Form W-8BEN or
W-8ECI (or any successor forms), properly completed and duly executed by such
Lender, and such other documentation required under the Internal Revenue Code
and reasonably requested by Company to establish that such Lender is not subject
to deduction or withholding of United States federal income tax with respect to
any payments to such Lender of principal, interest, fees or other amounts
payable under any of the Credit Documents, or (ii) if such Lender is not a “bank”
or other Person described in Section 881(c)(3) of the Internal Revenue Code and
cannot deliver either Internal Revenue Service Form W-8BEN or W-8ECI pursuant
to clause (i) above, a Certificate re Non-Bank Status together with two
original copies of Internal Revenue Service Form W-8 (or any successor form),
properly completed and duly executed by such Lender, and such other
documentation required under the Internal Revenue Code and reasonably requested
by Company to establish that such Lender is not subject to deduction or
withholding of United States federal income tax with respect to any payments to
such Lender of interest payable under any of the Credit Documents. Each Lender
required to deliver any forms, certificates or other evidence with respect to
United States federal income tax withholding matters pursuant to this Section
2.20(c) hereby agrees, from time to time after the initial delivery by such
Lender of such forms, certificates or other evidence, whenever a lapse in time
or change in circumstances renders such forms, certificates or other evidence
obsolete or inaccurate in any material respect, that such Lender shall promptly
deliver to Administrative Agent for transmission to Company two new original
copies of Internal Revenue Service Form W-8BEN or W-8ECI, or a Certificate re
Non-Bank Status and two original copies of Internal Revenue Service Form W-8,
as the case may be, properly completed and duly executed by such Lender, and
such other documentation required under the Internal Revenue Code and
reasonably requested by Company to confirm or establish that such Lender is not
subject to deduction or withholding of United States federal income tax with
respect to payments to such Lender under the Credit Documents, or notify
Administrative Agent and Company of its inability to deliver any such forms,
certificates or other evidence. Company shall not be required to pay any
additional amount to any Non-US Lender under

 

35

 

Section
2.20(b)(iii) if such Lender shall have failed (1) to deliver the forms,
certificates or other evidence referred to in the second sentence of this
Section 2.20(c), or (2) to notify Administrative Agent and Company of its
inability to deliver any such forms, certificates or other evidence, as the
case may be; provided, if such Lender shall have satisfied the
requirements of the first sentence of this Section 2.20(c) on the Closing Date
or on the date of the Assignment Agreement pursuant to which it became a
Lender, as applicable, nothing in this Section 2.20(c) shall relieve Company of
its obligation to pay any additional amounts pursuant to this Section 2.20 in
the event that, as a result of any change in any applicable law, treaty or
governmental rule, regulation or order, or any change in the interpretation,
administration or application thereof, such Lender is no longer properly
entitled to deliver forms, certificates or other evidence at a subsequent date
establishing the fact that such Lender is not subject to withholding as
described herein.

 

2.21. Obligation to Mitigate. Each Lender agrees that, as promptly as
practicable after the officer of such Lender responsible for administering its
Loans becomes aware of the occurrence of an event or the existence of a
condition that would cause such Lender to become an Affected Lender or that
would entitle such Lender to receive payments under Section 2.18, 2.19 or 2.20,
it will, to the extent not inconsistent with the internal policies of such
Lender and any applicable legal or regulatory restrictions, use reasonable
efforts to (a) make, issue, fund or maintain its Credit Extensions, including
any Affected Loans, through another office of such Lender, or (b) take such
other measures as such Lender may deem reasonable, if as a result thereof the
circumstances which would cause such Lender to be an Affected Lender would
cease to exist or the additional amounts which would otherwise be required to
be paid to such Lender pursuant to Section 2.18, 2.19 or 2.20 would be
materially reduced and if, as determined by such Lender in its sole discretion,
the making, funding or maintaining of the Commitments or Loans through such
other office or in accordance with such other measures, as the case may be,
would not otherwise adversely affect such Commitments or Loans, or the
interests of such Lender; provided, such Lender will not be obligated to
utilize such other office pursuant to this Section 2.21 unless Company agrees
to pay all incremental expenses incurred by such Lender as a result of
utilizing such other office as described in clause (a) above. A certificate as
to the amount of any such expenses payable by Company pursuant to this Section
2.21 (setting forth in reasonable detail the basis for requesting such amount)
submitted by such Lender to Company (with a copy to Administrative Agent) shall
be conclusive absent manifest error.

 

2.22. Defaulting Lenders. Anything contained herein to the contrary
notwithstanding, in the event that any Lender defaults (a “Defaulting Lender”) in its obligation to
fund (a “Funding Default”) any
Loan (a “Defaulted Loan”), then
(a) during any Default Period with respect to such Defaulting Lender, such
Defaulting Lender shall be deemed not to be a “Lender” for purposes of voting on any matters
(including the granting of any consents or waivers) with respect to any of the
Credit Documents; (b) to the extent permitted by applicable law, until such
time as the Default Excess with respect to such Defaulting Lender shall have
been reduced to zero, (i) any voluntary prepayment of the Loans shall, if
Company so directs at the time of making such voluntary prepayment, be applied
to the Loans of other Lenders as if such Defaulting Lender had no Loans
outstanding and the Loan Exposure of such Defaulting Lender were zero, and (ii)
any mandatory prepayment of the Loans shall, if Company so directs at the time
of making such mandatory prepayment, be applied to the Loans of other Lenders
(but not to the Loans of such Defaulting Lender) as if such Defaulting Lender
had funded all Defaulted Loans of such Defaulting Lender, it being understood
and agreed that Company shall be entitled to retain any portion of any
mandatory prepayment of the Loans that is not paid to such Defaulting Lender
solely as a result of the operation of the provisions of this clause (b); and
(c) the Loan Exposure as at any date of determination shall be calculated as if
such Defaulting Lender had funded all Defaulted Loans of such Defaulting
Lender. No Commitment of any Lender shall be increased or otherwise affected,
and, except as otherwise expressly provided in this Section 2.22, performance
by Company of its obligations

 

 

36

 

hereunder
and the other Credit Documents shall not be excused or otherwise modified as a
result of any Funding Default or the operation of this Section 2.22. The rights
and remedies against a Defaulting Lender under this Section 2.22 are in
addition to other rights and remedies which Company may have against such
Defaulting Lender with respect to any Funding Default and which Administrative
Agent or any Lender may have against such Defaulting Lender with respect to any
Funding Default.

 

2.23. Removal or Replacement of a
Lender. Anything
contained herein to the contrary notwithstanding, in the event that: (a) (i) any
Lender (an “Increased-Cost Lender”)
shall give notice to Company that such Lender is an Affected Lender or that
such Lender is entitled to receive payments under Section 2.18, 2.19 or 2.20,
(ii) the circumstances which have caused such Lender to be an Affected Lender
or which entitle such Lender to receive such payments shall remain in effect,
and (iii) such Lender shall fail to withdraw such notice within five Business
Days after Company’s request for such withdrawal; or (b) (i) any Lender shall
become a Defaulting Lender, (ii) the Default Period for such Defaulting Lender
shall remain in effect, and (iii) such Defaulting Lender shall fail to cure the
default as a result of which it has become a Defaulting Lender within five
Business Days after Company’s request that it cure such default; or (c) in
connection with any proposed amendment, modification, termination, waiver or
consent with respect to any of the provisions hereof as contemplated by Section
10.5(b), the consent of Requisite Lenders shall have been obtained but the
consent of one or more of such other Lenders (each a “Non-Consenting Lender”) whose consent is required shall not
have been obtained; then, with respect to each such Increased-Cost Lender,
Defaulting Lender or Non-Consenting Lender (the “Terminated Lender”), Company may, by giving written notice to
Administrative Agent and any Terminated Lender of its election to do so, elect
to cause such Terminated Lender (and such Terminated Lender hereby irrevocably
agrees) to assign its outstanding Loans and its Commitments, if any, in full to
one or more Eligible Assignees (each a “Replacement
Lender”) in accordance with the provisions of Section 10.6 and
Replacement Lender shall pay any fees payable thereunder in connection with
such assignment; provided, (1) on the date of such assignment, the
Replacement Lender shall pay to Terminated Lender an amount equal to the sum of
(A) an amount equal to the principal of, and all accrued interest on, all
outstanding Loans of the Terminated Lender, and (B) an amount equal to all
accrued, but theretofore unpaid fees owing to such Terminated Lender pursuant
to Section 2.11; (2) on the date of such assignment, Company shall pay any
amounts payable to such Terminated Lender pursuant to Section 2.18(c), 2.19 or 2.20;
or otherwise as if it were a prepayment pursuant to Section 2.13 or 2.14,
including, in the case of any Increased-Cost Lender or any Non-Consenting
Lender, prepayment premiums pursuant to Section 2.13(d) or 2.14(g) (it being
agreed that prior to the first anniversary of the Closing Date, the Company
shall pay a call premium equal to four percent of the principal amount
prepaid); and (3) in the event such Terminated Lender is a Non-Consenting
Lender, each Replacement Lender shall consent, at the time of such assignment,
to each matter in respect of which such Terminated Lender was a Non-Consenting
Lender. Upon the prepayment of all amounts owing to any Terminated Lender and
the termination of such Terminated Lender’s Commitments, if any, such
Terminated Lender shall no longer constitute a “Lender” for
purposes hereof; provided, any rights of such Terminated Lender to
indemnification hereunder shall survive as to such Terminated Lender.

 

2.24. Incremental Term Loans.

 

(a) Company may by written notice to Administrative
Agent at any time following the Closing Date, elect to request the
establishment of one or more new term loan commitments (the “New Term Loan Commitments”), by an amount
not in excess of $15,000,000 in the aggregate. After such notice, Company may
retain a syndication agent (the “Syndication
Agent”) reasonably satisfactory to Requisite Lenders, for the
purposes of arranging and syndicating the New Term Loan Commitments. Company
shall notify the Syndication Agent of the date (each, an “Increased Amount Date”) on which Company
proposes that the New Term Loan Commitments shall be effective, which shall be
a date not

 

 

37

 

less
than 10 Business Days after the date on which such notice is delivered to
Syndication Agent. Syndication Agent shall use its reasonable efforts to
deliver to Company as soon as practicable a notice containing the identity of
each Lender or other Person that is an Eligible Assignee (each, a “New Term Loan Lender”) to whom Syndication
Agent proposes any portion of such New Term Loan Commitments be allocated and
the amounts of such allocations; provided, that Syndication Agent
shall invite each Lender to participate in some portion of such New Term Loan
Commitments, and that any Lender approached to provide all or a portion of the
New Term Loan Commitments may elect or decline, in its sole discretion, to
provide a New Term Loan Commitment. Such New Term Loan Commitments shall become
effective, as of such Increased Amount Date; provided, that (i)
no Default or Event of Default shall exist on such Increased Amount Date before
or after giving effect to such New Term Loan Commitments, as applicable; (ii)
the New Term Loan Commitments shall be effected pursuant to one or more Joinder
Agreements executed and delivered by Company, Syndication Agent, Administrative
Agent and the New Term Loan Lenders, and each of which shall be recorded in the
Register and shall be subject to the requirements set forth in Section 2.20(c);
(iii) all such New Term Loan Commitments and/or New Term Loans shall have been
designated as “Third Lien Obligations” pursuant to and as defined in the Term
Loan Intercreditor Agreement; and (iv) Company shall deliver or cause to be
delivered any legal opinions or other documents reasonably requested by
Administrative Agent in connection with any such transaction. Any New Term
Loans made on an Increased Amount Date shall be designated, a separate series
(a “Series”) of New Term Loans for all purposes of this Agreement.

 

(b) On any Increased Amount Date on which any New
Term Loan Commitments of any Series are effective, subject to the satisfaction
of the foregoing terms and conditions, (i) each New Term Loan Lender of such
Series shall make a Loan to Company (a “New
Term Loan”) in an amount equal to its New Term Loan Commitment of
such Series, and (ii) each New Term Loan Lender of any Series shall become a
Lender hereunder with respect to the New Term Loan Commitment of such Series
and the New Term Loans of such Series made pursuant thereto.

 

(c) Administrative Agent shall notify Lenders
promptly upon receipt of Company’s notice of each Increased Amount Date and in
respect thereof, the Series of New Term Loan Commitments and the New Term Loan
Lenders of such Series, subject to the assignments contemplated by this
Section.

 

(d) The terms and provisions of the New Term Loans
of any Series shall be, except as otherwise set forth herein or in the Joinder
Agreement, identical to the Third Lien Term Loans. In any event the applicable
New Term Loan Maturity Date of each Series shall be no shorter than the final
maturity of the Third Lien Term Loans, and the rate of interest applicable to
the New Term Loans of each Series shall be determined by Company and the
applicable New Term Loan Lenders and shall be set forth in each applicable
Joinder Agreement; provided, however, that the interest rate
applicable to the New Term Loans shall not be greater than the highest interest
rate that may, under any circumstances, be payable with respect to Third Lien
Term Loans plus 0.50% per annum unless the interest rate with respect to the
Third Lien Term Loans is increased so as to equal the interest rate applicable
to the New Term Loans. Each Joinder Agreement may, without the consent of any
other Lenders, effect such amendments to this Agreement and the other Credit
Documents as may be necessary or appropriate, in the opinion of the Syndication
Agent and Administrative Agent, to effect the provision of this Section 2.24.

 

SECTION 3. CONDITIONS PRECEDENT

 

3.1. Closing Date. The obligation of any Lender to make a
Credit Extension on the Closing Date is subject to the reasonable satisfaction,
or waiver in accordance with Section 10.5, of the following conditions on or
before the Closing Date:

 

(a) Credit Documents. Administrative Agent
shall have received sufficient copies of each Credit Document (other than the
PIK Notes) originally executed and delivered by each applicable Credit Party
for each Lender.

 

 

38

 

(b) Organizational Documents; Incumbency.
Administrative Agent shall have received (i) sufficient copies of each
Organizational Document executed and delivered by each Credit Party, as
applicable, and, to the extent applicable, certified as of a recent date by the
appropriate governmental official, for each Lender, each dated the Closing Date
or a recent date prior thereto; (ii) signature and incumbency certificates of
the officers of such Person executing the Credit Documents to which it is a
party; (iii) resolutions of the Board of Directors or similar governing body of
each Credit Party approving and authorizing the execution, delivery and
performance of this Agreement and the other Credit Documents to which it is a
party or by which it or its assets may be bound as of the Closing Date,
certified as of the Closing Date by its secretary or an assistant secretary as
being in full force and effect without modification or amendment; (iv) a good
standing certificate from the applicable Governmental Authority of each Credit
Party’s jurisdiction of incorporation, organization or formation and in each
jurisdiction in which it is qualified as a foreign corporation or other entity
to do business, each dated a recent date prior to the Closing Date; and (v)
such other documents as Administrative Agent may reasonably request.

 

(c) Organizational and Capital Structure. The
organizational structure and capital structure of Company and its Subsidiaries
shall be as set forth on Schedule 4.2.

 

(d) Permitted Working Capital Facility,
First-Lien Term Loan and Second-Lien Term Credit Documents. Collateral
Agent shall have received the following agreements each in form and substance
reasonably satisfactory to the Requisite Lenders:

 

(i)
a certified copy of the Permitted Working Capital Facility agreement and the
Working Capital Facility Security Agreement, together with the amendments of
such Permitted Working Capital Facility agreement and Working Capital Facility
Security Agreement, pursuant to which Merrill Lynch releases its Lien on
Collateral (excluding the Working Capital Collateral);

 

(ii)
copies of the First-Lien Term Loan Agreement and the related First-Lien
Security Agreement;

 

(iii)
copies of the Second-Lien Term Loan Agreement and the related Second-Lien
Security Agreement;

 

(iv)
a copy of the Term Loan Intercreditor Agreement;

 

(v)
a copy of the Working Capital Intercreditor Agreement;

 

(vi)
satisfactory evidence that the Company has received gross proceeds of
$120,000,000 from the First-Lien Term Loan; and

 

(vii)
satisfactory evidence that the Company has received gross proceeds of
$30,000,000 from the Second-Lien Term Loan.

 

(e) Amendment of Liquidity Option Agreements.
Each of the holders of liquidity option agreements listed on Schedule 3.1(e)
shall have agreed that it will not seek payment from the Company in respect of
its liquidity option agreement until all of the Loans are paid in full or as
otherwise permitted pursuant to Section 6.5 hereof.

 

 

39

 

(f) Existing Indebtedness. On the Closing
Date, Company and its Subsidiaries shall have repaid in full all Indebtedness,
if any, described in clauses (i) and (iii) of the definition of such term,
excluding the Permitted Working Capital Facility, the First-Lien Term Loan and
the Second-Lien Term Loan. On the Closing Date, Company and its Subsidiaries
shall have delivered to Collateral Agent and Administrative Agent all documents
or instruments necessary to release all Liens, if any, securing such
Indebtedness, except Liens pursuant to the Permitted Working Capital Facility,
the First-Lien Term Loan and the Second-Lien Term Loan.

 

(g) Transaction Costs. On or prior to the
Closing Date, Company shall have delivered to Administrative Agent Company’s
reasonable best estimate of the Transactions Costs (other than fees payable to
any Agent).

 

(h) Governmental Authorizations and Consents.
Each Credit Party shall have obtained all Governmental Authorizations and all
consents of other Persons, in each case that are necessary or advisable in
connection with the execution, delivery and performance of the Credit Documents
and each of the foregoing shall be in full force and effect and in form and
substance reasonably satisfactory to Administrative Agent. All applicable
waiting periods shall have expired without any action being taken or threatened
by any competent authority which would restrain, prevent or otherwise impose
adverse conditions on the transactions contemplated by the Credit Documents or
the financing thereof and no action, request for stay, petition for review or
rehearing, reconsideration, or appeal with respect to any of the foregoing
shall be pending, and the time for any applicable agency to take action to set
aside its consent on its own motion shall have expired.

 

(i) Warrant Agreement and Warrants. Each
Lender shall have received an originally executed copy of the Warrant Agreement
and the Warrants issuable thereunder on the Closing Date to such Lender and
delivered by the Company.

 

(j) Personal Property Collateral. In order to
create in favor of Collateral Agent, for the benefit of Secured Parties, a
valid, perfected Third Priority security interest in the personal property
Collateral, Collateral Agent shall have received:

 

(i)
evidence satisfactory to Collateral Agent of the compliance by Company of its
obligations under the Pledge and Security Agreement and the other Collateral
Documents (including, without limitation, its obligations to authorize the
filing of UCC financing statements and execute (if required) and deliver originals
of securities, instruments and chattel paper and any agreements governing
deposit and/or securities accounts as provided therein);

 

(ii)
A completed Collateral Questionnaire dated the Closing Date and executed by an
Authorized Officer of each Credit Party, together with all attachments
contemplated thereby, including (A) the results of a recent search of all
effective UCC financing statements (or equivalent filings) made with respect to
any personal or mixed property of any Credit Party in the jurisdictions
specified in the Collateral Questionnaire, together with copies of all such
filings disclosed by such search, and (B) UCC termination statements (or
similar documents) duly executed by all applicable Persons for filing in all
applicable jurisdictions as may be necessary to terminate any effective UCC
financing statements (or equivalent filings) disclosed in such search (other
than any such financing statements in respect of Permitted Liens), as specified
by the Collateral Agent or counsel to the Administrative Agent; and

 

 

40

 

(iii)
[Reserved].

 

(iv)
evidence that each Credit Party shall have taken or caused to be taken any
other action, executed and delivered or caused to be executed and delivered any
other agreement, document and instrument (including without limitation, any
intercompany notes evidencing Indebtedness permitted to be incurred pursuant to
Section 6.1(b)) and made or caused to be made any other filing and recording
(other than as set forth herein) reasonably required by Collateral Agent.

 

(k) [Reserved].

 

(l) Financial Statements; Projections.
Lenders shall have received from Company (i) the Historical Financial
Statements and (ii) the Projections.

 

(m) Evidence of Insurance. Collateral Agent
shall have received a certificate from Company’s insurance broker or other
evidence satisfactory to it that all insurance required to be maintained
pursuant to Section 5.5 is in full force and effect and that Collateral Agent,
for the benefit of Lenders has been named as additional insured and loss payee
thereunder to the extent required under Section 5.5.

 

(n) Opinion of Counsel to Credit Parties.
Lenders and their respective counsel shall have received originally executed
copies of the favorable written opinion of outside counsel for Credit Parties,
in the form of Exhibit D, dated as of the Closing Date, addressed to Lenders
and the Agents, and otherwise in form and substance reasonably satisfactory to
Lenders and their respective counsel (and each Credit Party hereby instructs
such counsel to deliver such opinions to Agents and Lenders).

 

(o) [Reserved].

 

(p) Fees and Expenses. Company shall have
paid to the Agents the fees and expenses payable on or prior to the Closing
Date referred to in Section 2.11.

 

(q) Solvency Certificate. On the Closing
Date, Administrative Agent shall have received a Solvency Certificate from
Company dated the Closing Date and addressed to Administrative Agent and
Lenders, and in form, scope and substance satisfactory to Administrative Agent,
with appropriate attachments and demonstrating that Company and its
Subsidiaries are and will be Solvent.

 

(r) Closing Date Certificate. Company shall
have delivered to Administrative Agent an originally executed Closing Date
Certificate, together with all attachments thereto.

 

(s) [Reserved].

 

(t) [Reserved].

 

(u) No Litigation. There shall not exist any
action, suit, investigation, litigation or proceeding pending or threatened in
writing in any court or before any arbitrator or Governmental Authority that,
in the reasonable opinion of Administrative Agent, singly or in the aggregate,
that could reasonably be expected to have a Material Adverse Effect.

 

(v) Completion of Proceedings. All corporate
and other proceedings taken or to be taken in connection with the transactions
contemplated hereby shall be reasonably satisfactory in form

 

 

41

 

and
substance to Administrative Agent and its counsel, and Administrative Agent and
its counsel shall have received all such counterpart originals or certified
copies of such documents as Administrative Agent may reasonably request.

 

Each
Lender, by delivering its signature page to this Agreement and funding a Loan
on the Closing Date, shall be deemed to have consented to and approved, each
Credit Document and each other document required to be approved by any Agent,
Requisite Lenders or Lenders, as applicable on the Closing Date.

 

3.2. Conditions to Each Credit
Extension.

 

(a) Conditions Precedent. The obligation of
each Lender to make any Loan on any Credit Date, including the Closing Date, is
subject to the satisfaction, or waiver in accordance with Section 10.5, of the
following conditions precedent:

 

(i)
Administrative Agent shall have received a fully executed and delivered Funding
Notice in accordance with 2.2(b);

 

(ii)
after making the Credit Extensions requested on such Credit Date, (a) the
aggregate Loan Exposure of all Lenders shall not exceed the aggregate
Commitments of all Lenders as of the Closing Date (without any reduction
thereof) and (b) the amount of such Credit Extensions shall not exceed the
aggregate Commitments then in effect; and

 

(iii)
as of such Credit Date, no event shall have occurred and be continuing or would
result from the consummation of the applicable Credit Extension that would
constitute a Default or an Event of Default.

 

(b) Notices. Any Funding Notice shall be
executed by an Authorized Officer in a writing delivered to Administrative
Agent. In lieu of delivering a Funding Notice, Company may give Administrative
Agent telephonic notice by the time otherwise required for the delivery of a
Funding Notice for any proposed borrowing; provided, each such notice
shall be promptly confirmed in writing by delivery of the applicable Funding
Notice to Administrative Agent on or before the applicable date of borrowing.
Neither Administrative Agent nor any Lender shall incur any liability to
Company in acting upon any telephonic notice referred to above that
Administrative Agent believes in good faith to have been given by a duly
authorized officer or other person authorized on behalf of Company or otherwise
acting in good faith with reasonable care.

 

SECTION 4. REPRESENTATIONS AND WARRANTIES

 

In order to induce Lenders to enter into this
Agreement and to make each Credit Extension to be made thereby, each Credit
Party represents and warrants to each Lender, on the Closing Date, that the
following statements are true and correct:

 

4.1. Organization; Requisite Power
and Authority; Qualification. Each of Company and its Subsidiaries (a) is duly organized, validly
existing and in good standing under the laws of its jurisdiction of
organization as identified in Schedule 4.1, (b) has all requisite power and
authority to own and operate its properties, to carry on its business as now
conducted and as proposed to be conducted, to enter into the Credit Documents
to which it is a party and to carry out the transactions contemplated thereby,
and (c) is qualified to do business and in good standing in every jurisdiction
where its assets are located and wherever necessary to carry out its business
and operations, except in jurisdictions where the failure to be so qualified or
in good standing has not had, and could not be reasonably expected to have, a Material
Adverse Effect.

 

 

42

 

4.2. Capital Stock and Ownership. All of the issued shares of Capital Stock
of Company have been duly and validly authorized and issued, and are fully paid
and non-assessable; and all of the issued shares of Capital Stock of each
Subsidiary of Company have been duly and validly authorized and issued, are
fully paid and non-assessable and are owned directly or indirectly by Company,
free and clear of all Liens, other than those created by the Credit Documents
in favor of the Collateral Agent. As of the date hereof, except as set forth in
Schedule 4.2, no options, warrants or other rights to purchase, agreements or
other obligations to issue, or rights to convert any obligations into or
exchange any securities for, shares of Capital Stock of Company or any of its
Subsidiaries are outstanding. Schedule 4.2 correctly sets forth the ownership
interest of Company and each of its Subsidiaries in their respective
Subsidiaries as of the Closing Date. Prior to the Closing Date, Company has not
permitted RP Sub No. 1 to engage in any business activities, incur any
Indebtedness, grant or permit to exist any Liens, make any Investments, or hold
any property other than 903,420 shares of Capital Stock of the Company.

 

4.3. Due Authorization. This Agreement has been duly authorized,
executed and delivered by each Credit Party.

 

4.4. No Conflict, Violation,
Default.

 

(a) The execution, delivery and compliance by each
Credit Party to each Credit Document to which it is a party and the
consummation of the transactions contemplated by the Credit Documents will not
(i) conflict with or result in a breach or violation of any of the terms or
provisions of, or constitute a default under, any indenture, mortgage, deed of
trust, loan agreement or other agreement or instrument to which Company or any
of its Subsidiaries is a party or by which Company or any of its Subsidiaries
is bound or to which any of the property or assets of Company or any of its
Subsidiaries is subject, other than such conflict, breach or violation as could
not reasonably be expected to have a Material Adverse Effect, (ii) result in or
require the creation or imposition of any Lien upon any of the properties or
assets of Company or any of its Subsidiaries (other than the Liens created by
the Credit Documents in favor of the Collateral Agent) or (iii) result in any
violation of the provisions of the Organizational Documents of Company or any
of its Subsidiaries or any statute or any order, rule or regulation of any
Governmental Authority having jurisdiction over Company or any of its
Subsidiaries or any of their properties; and no consent, approval,
authorization, order, registration or qualification of or with any such
Governmental Authority is required for the consummation by the Credit Parties
of the transactions contemplated by the Credit Documents (other than the filing
of UCC financing statements to perfect the Collateral Agent’s Liens in certain
of the Collateral); and no approval of stockholders, members or partners or any
approval or consent of any Person under any Contractual Obligation of Company
or any of its Subsidiaries is required for the consummation by the Credit
Parties of the transactions contemplated by the Credit Documents, except for
such approvals or consents which have been obtained, and the execution and
delivery by the respective parties thereto of the Term Loan Intercreditor
Agreement and the Working Capital Intercreditor Agreement.

 

(b) Neither Company nor any of its Subsidiaries is
(i) in violation of its Organizational Documents or (ii) in default in the
performance or observance of any material obligation, agreement, covenant or
condition contained in any indenture, mortgage, deed of trust, loan agreement,
lease or other agreement or instrument to which it is a party or by which it or
any of its properties may be bound, other than, in the case of clause (ii),
such defaults as could not reasonably be expected to have a Material Adverse
Effect, and no condition exists which, with the giving of notice or the lapse
of time or both, could reasonably be expected to constitute such a default.

 

 

43

 

4.5. Governmental Consents. The execution, delivery and performance by
Credit Parties of the Credit Documents to which they are parties and the
consummation of the transactions contemplated by this Agreement and the
Collateral Documents do not and will not require any registration with, consent
or approval of, or notice to, or other action to, with or by, any Governmental
Authority, except for filings and recordings with respect to the Collateral to
be made, or otherwise delivered to Collateral Agent for filing and/or
recordation, as of the Closing Date.

 

4.6. Binding Obligation. Each Credit Document has been duly executed
and delivered by each Credit Party that is a party thereto and is the legally
valid and binding obligation of such Credit Party, enforceable against such
Credit Party in accordance with its respective terms, except as may be limited
by bankruptcy, insolvency, reorganization, moratorium or similar laws relating
to or limiting creditors’ rights generally or by equitable principles relating
to enforceability.

 

4.7. Historical Financial
Statements. The
Historical Financial Statements present fairly in all material respects the
financial position of Company as of the dates shown thereon and its results of
operations and cash flows for the periods specified therein, and the Historical
Financial Statements have been prepared in conformity with GAAP (subject, in
the case of the financial statements for the months ended January 31, 2005 and
February 28, 2005, to the absence of footnotes and changes resulting from audit
and normal year-end adjustments); except as set forth on Schedule 4.7, as of
the Closing Date, none of Company or any of its Subsidiaries has any contingent
liability or liability for taxes, long-term leases or unusual forward or
long-term commitments that are not reflected in the Historical Financial
Statements and which in any such case is material in relation to the business,
operations, properties, assets, condition (financial or otherwise) of Company
and its Subsidiaries taken as a whole.

 

4.8. Projections. On and as of the Closing Date, the
Projections of Company and its Subsidiaries for the period Fiscal Year 2005
through and including Fiscal Year 2008 (the “Projections”)
are based on good faith estimates and assumptions made by the management of
Company; provided, the Projections are not to be viewed as facts and
that actual results during the period or periods covered by the Projections may
differ from such Projections and that the differences may be material; provided,
further, as of the Closing Date, senior management of Company believed
that the Projections were reasonable.

 

4.9. No Material Adverse Change. Since December 31, 2003, (i) neither
Company nor any of its Subsidiaries has sustained any material loss or
interference with its business from fire, explosion, flood or other calamity,
whether or not covered by insurance, or from any labor dispute or Governmental
Acts, other than as set forth in Schedule 4.9; (ii) there has not been any
change in the capital stock or long-term debt of Company or any of its
Subsidiaries other than as set forth in Schedule 4.9; and (iii) there has not
occurred any effect, event, change or state of fact that, individually or in
the aggregate, has resulted in, or would be reasonably likely to result in, a
material adverse effect with respect to the business operations, properties,
assets or condition (financial or otherwise) of Company and its Subsidiaries
taken as a whole, other than as set forth in Schedule 4.9.

 

4.10. Schedule 3.1(e).  Schedule
3.1(e) is a complete list of all holders who are parties to liquidity option
agreements with the Company.

 

4.11. Adverse Proceedings, etc. Except as set forth on Schedule 4.11: (a)
there are no legal or governmental proceedings pending to which Company or any
of its Subsidiaries is a party or of which any property of Company or any of
its Subsidiaries is the subject which, if determined adversely to Company or
any of its Subsidiaries, would individually or in the aggregate have a Material
Adverse Effect; and (b) to the Company’s Knowledge, no such proceedings have
been threatened or contemplated in writing by Governmental Authorities or other
Persons.

 

 

44

 

4.12. Payment of Taxes. Except as otherwise permitted under Section
5.3 and as disclosed on Schedule 4.12, all material tax returns and reports of
Company and its Subsidiaries required to be filed by any of them have been
timely filed, and all material Taxes shown on such tax returns to be due and
payable and all assessments, fees and other governmental charges upon Company
and its Subsidiaries and upon their respective properties, assets, income,
businesses and franchises which are due and payable have been paid when due and
payable, other than any such Taxes, assessments, fees and charges that are
being contested in good faith by appropriate proceedings promptly instituted
and diligently conducted, so long as (a) adequate reserve or other appropriate
provision, as shall be required in conformity with GAAP shall have been made
therefor, and (b) in the case of a Tax, assessment, fee or charge that has or
may become a Lien against any of the Collateral, such contest proceedings
conclusively operate to stay the sale of any portion of the Collateral to
satisfy such Tax, assessment, fee or charge.

 

4.13. Properties.

 

(a) Title. Except for Permitted Liens and
except as disclosed on Schedule 4.13, Company and its Subsidiaries have good
and marketable title to all personal property owned by them, in each case free
and clear of all Liens except such as do not materially affect the value of
such property and do not interfere with the use made and proposed to be made of
such property by Company and its Subsidiaries; and any real property and
buildings held under lease by Company and its Subsidiaries are held by them
under valid, subsisting and enforceable leases with such exceptions as are not
material and do not interfere with the use made and proposed to be made of such
property and buildings by Company and its Subsidiaries.

 

(b) Real Estate. As of the Closing Date,
Schedule 4.13 contains a true, accurate and complete list of (i) all Material
Real Estate Assets, and (ii) the lease of Company’s headquarters at the address
listed on Appendix B hereto (together with all amendments, modifications,
supplements, renewals or extensions of any thereof). The lease described in
clause (ii) of the immediately preceding sentence is in full force and effect
and constitutes the legally valid and binding obligation of each applicable
Credit Party, enforceable against such Credit Party in accordance with its
terms, except as enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or limiting creditors’
rights generally or by equitable principles.

 

(c) Intellectual Property. Subject to the
qualifications set forth in this Section 4.13(c) below, the Company and/or its
Subsidiaries own, or are licensed or otherwise have the right to use, all
patents, inventions, trademarks, service marks, trade names, domain names,
copyrights, and registrations and applications for the foregoing, know-how,
manufacturing processes, formulae, trade secrets, rights of publicity of
natural persons and any other intangible property and assets which are material
to the businesses of Company and its Subsidiaries as now conducted and as
proposed to be conducted (collectively, the “Intellectual
Property Rights”). Except as set forth on Schedule 4.13(c), Company
does not have any Knowledge of, and neither Company nor any of its Subsidiaries
has given any notice of, any pending conflicts with or infringement of or other
violation of any Intellectual Property Rights or Regulatory Approvals by any
third-party, and no action, suit, arbitration, or legal, administrative or
other proceedings, or investigation is pending, or, to the Knowledge of
Company, threatened, which involves any Intellectual Property Rights and which
could reasonably be expected to have a Material Adverse Effect. Except as set
forth on Schedule 4.13(c), neither Company nor any of its Subsidiaries is
subject to any judgment, order, writ, injunction or decree of any Governmental
Authority or any arbitrator, or has entered into or is a party to any contract,
which restricts or impairs the use of any such Intellectual

 

 

45

 

Property
Rights or Company’s or any of its Subsidiaries’ use of or right to use any of
the Intellectual Property Rights and which could reasonably be expected to have
a Material Adverse Effect. To the Knowledge of Company, no Intellectual
Property Rights licensed to or by or otherwise used by Company or any of its
Subsidiaries, no services rendered or products manufactured by or sold by
Company or any of its Subsidiaries, and no conduct of the business of Company
or any of its Subsidiaries, infringes upon or otherwise violates any
intellectual property rights of any third-party. Except as set forth on
Schedule 4.13(c), neither Company nor any of its Subsidiaries has received
notice of any pending conflict with or infringement upon such third-party
intellectual property rights. No claims have been asserted by any Person with
respect to the validity of or Company’s or any of its Subsidiaries’ ownership
of or right to use, the Intellectual Property Rights and, to the Knowledge of
Company, there is no reasonable basis for any such claim to be successful. The
Intellectual Property Rights are valid and enforceable and no registration or
application relating thereto that is material to the business of Company or its
Subsidiaries has lapsed, expired or been abandoned or cancelled or is the subject
of cancellation or other adversarial proceedings, and all applications
therefore are pending and are in good standing. Company and its Subsidiaries
have complied in all material respects with their respective contractual
obligations relating to the Intellectual Property Rights used pursuant to
licenses. Company and its Subsidiaries take reasonable security measures that
are adequate to retain trade secret protection in the non-patented technology
that is material to their business.

 

4.14. Environmental Matters. Neither Company nor any of its Subsidiaries
nor any of their respective facilities or operations are subject to any
outstanding written order, consent decree or settlement agreement with any
Person relating to any Environmental Law, any Environmental Claim, or any
Hazardous Materials Activity that could reasonably be expected to have a
Material Adverse Effect. Neither Company nor any of its Subsidiaries has
received any letter or request for information under Section 104 of the
Comprehensive Environmental Response, Compensation, and Liability Act (42
U.S.C. § 9604) or any comparable state law. To Company’s Knowledge, there are
and have been no conditions, occurrences, or Hazardous Materials Activities
which could reasonably be expected to form the basis of an Environmental Claim
against Company or any of its Subsidiaries, which if adversely determined would
reasonably be expected to have a Material Adverse Effect. Neither Company nor
any of its Subsidiaries nor any predecessor of Company or any of its
Subsidiaries has filed any notice under any Environmental Law indicating past
or present treatment of Hazardous Materials at any of their respective
facilities, and none of Company’s or any of its Subsidiaries’ operations
involves the generation, transportation, treatment, storage or disposal of
hazardous waste, as defined under 40 C.F.R. Parts 260-270 or any state
equivalent. Compliance with all current or reasonably foreseeable future
requirements pursuant to or under Environmental Laws could not be reasonably
expected to have, individually or in the aggregate, a Material Adverse Effect.
No event or condition has occurred or is occurring with respect to Company or
any of its Subsidiaries relating to any Environmental Law, any release of
Hazardous Materials, or any Hazardous Materials Activity that could reasonably
be expected to have a Material Adverse Effect. To Company’s Knowledge, no event
or condition has occurred with respect to any manufacturer of a material
product of Company or its Subsidiaries relating to any Environmental Law, and
release of Hazardous Materials or any Hazardous Materials Activity that could
reasonably be expected to have a Material Adverse Effect.

 

4.15. No Defaults. Neither Company nor any of its Subsidiaries
is in default in the performance, observance or fulfillment of any of the
obligations, covenants or conditions contained in any of its Contractual
Obligations, and no condition exists which, with the giving of notice or the
lapse of time or both, could reasonably be expected to constitute such a
default, except where the consequences, direct or indirect, of such default or
defaults, if any, singularly or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect.

 

 

46

 

4.16. Material Contracts. Schedule 4.16 contains a true, correct and
complete list of all the Material Contracts in effect on the Closing Date, and
except as described thereon, all such Material Contacts are in full force and
effect and to the Knowledge of Company, no defaults by the counterparties to
such Material Contracts currently exist thereunder, other than any such
defaults or failure to be in force and effect which could not reasonably be
expected to have a Material Adverse Effect.

 

4.17. Governmental Regulation.

 

(a) Neither Company nor any of its Subsidiaries is
subject to regulation under the Investment Company Act of 1940, as amended (the
“Investment Company Act”); and
neither Company nor any of its Subsidiaries is, and after receipt of the Loans
or the use of the Loan proceeds, will be, an “investment
company” as such term is defined
in the Investment Company Act.

 

(b) Except as disclosed in Schedule 4.17(b)(i),
Company and each of its Subsidiaries is in compliance with all applicable laws,
statutes, ordinances, rules and regulations and has filed all applications and
has obtained all licenses, permits and approvals or other regulatory
authorizations of the Federal Food and Drug Administration (the “FDA”) and any other Governmental
Authorities with regulatory authority over the activities of Company and its
Subsidiaries (including, without limitation, all FDA approvals necessary for
manufacturing or marketing the products Company and each of its Subsidiaries
currently manufacture or market) (“Regulatory Approvals”), other than where the
failure to so be in compliance could reasonably be expected to have a Material
Adverse Effect.

 

(c) The FDA has not commenced, or, to Company’s
Knowledge, threatened to initiate, any action to withdraw its approval of any
product of Company or its Subsidiaries or commenced or, to Company’s Knowledge,
threatened in writing to initiate any action to withdraw its approval of any
facility of Company or its Subsidiaries.

 

(d) To Company’s Knowledge, the human clinical
trials conducted by or on behalf of Company or its Subsidiaries, or in which
Company or its Subsidiaries have participated, or the results thereof, were
and, if still pending, are being, conducted in accordance with applicable
regulatory requirements; Company has no Knowledge of any other studies or
tests, the results of which discredit the results of such human clinical
trials; neither Company nor its Subsidiaries have received any notice or
correspondence from the FDA or any other Governmental Authority requiring the
termination or suspension of any human clinical trials conducted by, or on
behalf of, Company or its Subsidiaries or in which Company or its Subsidiaries
have participated, or any modification of any clinical trials conducted by, or
on behalf of, Company or its Subsidiaries or in which Company or its
Subsidiaries have participated.

 

4.18. Margin Stock. Neither Company nor any of its Subsidiaries
is engaged principally, or as one of its important activities, in the business
of extending credit for the purpose of purchasing or carrying any Margin Stock.
No part of the proceeds of the Loans made to such Credit Party will be used to
purchase or carry any Margin Stock or to extend credit to others for the
purpose of purchasing or carrying any Margin Stock or for any purpose that
violates, or is inconsistent with, the provisions of Regulation T, U or X of
the Board of Governors of the Federal Reserve System.

 

4.19. Employee Matters. (a) Neither Company nor any of its
Subsidiaries is engaged in any unfair labor practice, which could reasonably be
expected to have a Material Adverse Effect and (b) there is (i) no unfair labor
practice complaint pending against Company or any of its Subsidiaries, or to
the Knowledge of Company, threatened against any of them, before the National
Labor Relations Board and no grievance or arbitration proceeding arising out of
or under any collective bargaining agreement that is

 

 

47

 

so
pending against Company or any of its Subsidiaries, or to the Knowledge of
Company, threatened against any of them, (ii) no strike or work stoppage in
existence or threatened involving Company or any of its Subsidiaries and (iii)
to the Knowledge of Company, no union representation question existing with
respect to the employees of Company or any of its Subsidiaries and, to the
Knowledge of Company, no union organization activity that is taking place.

 

4.20. Employee Benefit Plans. Company, each of its Subsidiaries and each
of their respective ERISA Affiliates are in material compliance with all
applicable provisions and requirements of ERISA and the Internal Revenue Code
with respect to each Employee Benefit Plan and have performed all their
obligations under each Employee Benefit Plan. Other than in the ordinary
course, no liability to the PBGC, the Internal Revenue Service, any Employee
Benefit Plan or any trust established under Title IV of ERISA has been or is
expected to be incurred by Company, any of its Subsidiaries or any of their
ERISA Affiliates. No ERISA Event has occurred or is reasonably expected to
occur. The present value of the aggregate benefit liabilities under each
Pension Plan sponsored, maintained or contributed to by Company, any of its
Subsidiaries or any of their ERISA Affiliates (determined as of the end of the
most recent plan year on the basis of the actuarial assumptions specified for
funding purposes in the most recent actuarial valuation for such Pension Plan),
did not exceed the aggregate current value of the assets of such Pension Plan.
None of Company, any of its Subsidiaries, or any of their ERISA Affiliates has
any Multiemployer Plan.

 

4.21. Certain Fees. No broker’s or finder’s fee or commission
will be payable with respect hereto or any of the transactions contemplated
hereby, except for any such fees or commissions payable to any Agent or Lender.

 

4.22. Solvency. Each Credit Party is and, upon the
incurrence of any Obligation by such Credit Party on any date on which this
representation and warranty is made, will be, Solvent.

 

4.23. [RESERVED].

 

4.24. Permits, Compliance with
Statutes, etc. Except
as disclosed on Schedule 4.24:

 

(a) Each of Company and its Subsidiaries is in
compliance with all applicable statutes, rules, regulations and orders of, and
all applicable restrictions imposed by, all Governmental Authorities, in
respect of the conduct of its business and the ownership of its property
(including compliance with all applicable Environmental Laws with respect to
any Real Estate Asset or governing its business and the requirements of any
permits issued under such Environmental Laws with respect to any such Real
Estate Asset or the operations of Company or any of its Subsidiaries), except
in each of the foregoing cases, for such non-compliance that, individually or
in the aggregate, could not reasonably be expected to result in a Material
Adverse Effect.

 

(b) Company and its Subsidiaries possess adequate
certificates, authorities or permits issued by appropriate Governmental
Authorities necessary to conduct the business now operated by them and have not
received any notice of proceedings relating to the revocation or modification
of any such certificate, authority or permit.

 

4.25. Disclosure. No representation or warranty of any Credit
Party contained in any Credit Document or in any other document or certificate
delivered to an Agent or the Lenders by or on behalf of Company or any of its
Subsidiaries pursuant to such Credit Document contains any untrue statement of
a material fact or omits to state a material fact necessary in order to make
the statements contained herein or therein not misleading in light of the
circumstances in which the same were made. Any projections

 

 

48

 

contained
in such materials are based upon good faith estimates and assumptions believed
by senior management of Company to be reasonable at the time made, it being
recognized by Lenders that such projections as to future events are not to be
viewed as facts and that actual results during the period or periods covered by
any such projections may differ from the projected results and that the
differences may be material.

 

4.26. New Drug Applications. To Company’s Knowledge, there exist no
pending abbreviated new drug applications or other applications filed by third
parties with respect to any of the Products for which there is no generic
equivalent product on the market, whereby any such third-party could reasonably
be expected to obtain approval to make, have made, use, sell, offer for sale,
import, distribute, commercialize and otherwise dispose of any of the Products
in the Territory on or prior to the Closing Date.

 

4.27. Quality of Inventory. To the Knowledge of Company, all inventory
of any Product in possession or control of Company or any of its Subsidiaries
(a) is not adulterated or misbranded (within the meaning of the Food and Drug
Act or the rules and regulations of the FDA promulgated thereunder; and (b) is
manufactured, labeled and packaged in accordance with cGMPs and with all other
applicable laws. Company has taken reasonable precautions to ensure that all
inventory of any Product in possession or control of Company or any of its
Subsidiaries (a) is not adulterated or misbranded (within the meaning of the
Food and Drug Act or the rules and regulations of the FDA promulgated
thereunder and (b) is manufactured, labeled and packaged in accordance with
cGMPs and with all other applicable laws.

 

4.28. Non-disclosure and
Confidentiality Policies. Company has adopted and will use measures it deems reasonably
necessary and/or desirable to enforce non-disclosure and confidentiality
policies and has obtained agreements from employees, consultants and other
third parties that it deems reasonably necessary or desirable to protect its
Intellectual Property Rights.

 

4.29.  Non-compliance
with Governmental Regulation. A complete and correct list of all
material Regulatory Approvals and all material patents and patent applications
owned or licensed by Company or any of its Subsidiaries that cover the
manufacture, marketing, use, sale, offer for sale, importation, distribution,
commercialization and other disposition of the Products anywhere in the
Territory is described in Schedule 4.17(b)(ii).

 

SECTION 5. AFFIRMATIVE COVENANTS

 

Each Credit Party covenants and agrees that so long
as any Commitment is in effect and until payment in full of all Obligations,
each Credit Party shall perform, and shall cause each of its Subsidiaries to
perform, all covenants in this Section 5.

 

5.1. Financial Statements and Other
Reports. Company will
deliver to Administrative Agent for distribution to each Lender:

 

(a) Monthly Reports. As soon as available,
and in any event within thirty (30) days after the end of each month ending
after the Closing Date (except any such month as is the last month of a Fiscal
Quarter), the consolidated balance sheets of Company and its Subsidiaries as at
the end of such month and the previous Fiscal Year end and the related
consolidated statements of operations and cash flows of Company and its
Subsidiaries for such month and for the period from the beginning of the then
current Fiscal Year to the end of such month, setting forth in each case in
comparative form the corresponding figures for the corresponding periods of the
previous Fiscal Year and a statement of stockholders’ equity from the prior
Fiscal Year end to the end of such month, and with respect to the

 

 

49

 

consolidated
statement of operations, corresponding figures from the Financial Plan for the
current Fiscal Year, as modified from time to time by management and approved
by the Board of Directors of Company, for such month and for the period from
the beginning of the then current Fiscal Year to the end of such month;

 

(b) Quarterly Financial Statements. As soon
as available, and in any event within forty-five (45) days after the end of
each of the first three Fiscal Quarters of each Fiscal Year, the consolidated
balance sheets of Company and its Subsidiaries as at the end of such Fiscal
Quarter and the previous Fiscal Year end and the related consolidated
statements of operations and cash flows of Company and its Subsidiaries for
such Fiscal Quarter and for the period from the beginning of the then current
Fiscal Year to the end of such Fiscal Quarter, setting forth in each case in
comparative form the corresponding figures for the corresponding periods of the
previous Fiscal Year and a statement of stockholders’ equity from the prior
Fiscal Year end to the end of such month and, with respect to the consolidated
statements of operations, the corresponding figures from the Financial Plan for
the current Fiscal Quarter and from the prior Fiscal Year end to the end of
such Fiscal Quarter, as modified from time to time by management and approved
by the Board of Directors of Company, all in reasonable detail, together with a
Financial Officer Certification with respect thereto;

 

(c) Annual Financial Statements. As soon as
available, and (i) in any event within thirty (30) days after the Closing Date,
the audited financial statements of Company for the Fiscal Year ended December
31, 2004; (ii) in any event within ninety (90) days after the end of each
Fiscal Year, the consolidated and consolidating balance sheets of Company and its
Subsidiaries as at the end of such Fiscal Year and the related consolidated
(and with respect to statements of operations, consolidating) statements of
operations, stockholders’ equity and cash flows of Company and its Subsidiaries
for such Fiscal Year, setting forth in each case in comparative form the
corresponding figures for the previous Fiscal Year and, with respect to the
consolidated statement of operations, the corresponding figures from the
Financial Plan for the Fiscal Year covered by such financial statements, as
modified from time to time by management and approved by the Board of Directors
of Company, in reasonable detail, together with a Financial Officer
Certification and a Narrative Report with respect thereto; provided, however,
that until Company has an operating Subsidiary, Company shall not be obligated
to prepare consolidating financial statements; and (iii) in any event within
ninety (90) days after the end of each Fiscal Year with respect to such
consolidated financial statements (such statements to exclude the corresponding
figures from the Financial Plan), a report thereon of Ernst & Young, LLP or
other independent certified public accountants of recognized national standing
selected by Company, and reasonably satisfactory to Administrative Agent (which
report shall be unqualified as to going concern and scope of audit, and shall
state that such consolidated financial statements fairly present, in all
material respects, the consolidated financial position of Company and its
Subsidiaries as at the dates indicated and the results of their operations and
their cash flows for the periods indicated in conformity with GAAP and that the
examination by such accountants in connection with such consolidated financial
statements has been made in accordance with generally accepted auditing
standards). Their report will indicate that their audit was not directed
primarily towards obtaining knowledge of such noncompliance;

 

(d) Compliance Certificate. Together with
each delivery of financial statements of Company and its Subsidiaries pursuant
to Sections 5.1(b) and 5.1(c), a duly executed and completed Compliance
Certificate;

 

(e) [Reserved];

 

(f) Notice of Default. Promptly upon any
Responsible Officer of Company obtaining knowledge (i) of any condition or
event that constitutes a Default or an Event of Default or that notice has

 

 

50

 

been
given to Company with respect thereto; (ii) that any Person has given any
written notice to Company or any of its Subsidiaries or taken any other action
with respect to any event or condition set forth in Section 8.1(b); or (iii) of
the occurrence of any event or change that has caused or evidences, either in
any case or in the aggregate, a Material Adverse Effect, a certificate of an
Authorized Officer specifying the nature and period of existence of such
condition, event or change, or specifying the notice given and action taken by
any such Person and the nature of such claimed Event of Default, Default,
default, event or condition, and what action Company has taken, is taking and
proposes to take with respect thereto; provided, however, that
Company shall not be obligated under the foregoing provision to furnish any
information to the extent that furnishing such information would result in its
waiver of a privilege;

 

(g) Notice of Litigation. Promptly upon any
Responsible Officer of Company obtaining knowledge of (i) the institution of,
or non-frivolous written threat, as determined by the Company in its reasonable
business judgment, of, any Adverse Proceeding not previously disclosed in
writing by Company to Lenders, or (ii) any material development in any Adverse
Proceeding that, in the case of either (i) or (ii) if adversely determined,
could be reasonably expected to have a Material Adverse Effect, or seeks to
enjoin or otherwise prevent the consummation of, or to recover any damages or
obtain relief as a result of, the transactions contemplated hereby, written
notice thereof together with such other information as may be reasonably
available to Company to enable Lenders and their counsel to evaluate such
matters; provided, however, that Company shall not be obligated
under the foregoing provision to furnish any information to the extent that
furnishing such information would result in its waiver of a privilege;

 

(h) ERISA. (1) Promptly upon becoming aware
of the occurrence of or forthcoming occurrence of any ERISA Event, a written
notice specifying the nature thereof, what action Company, any of its
Subsidiaries or any of their respective ERISA Affiliates has taken, is taking
or proposes to take with respect thereto and, when known, any action taken or
threatened by the Internal Revenue Service, the Department of Labor or the PBGC
with respect thereto; and (2) with reasonable promptness, copies of (x) each
Schedule B (Actuarial Information) to the annual report (Form 5500 Series)
filed by Company, any of its Subsidiaries or any of their respective ERISA
Affiliates with the Internal Revenue Service with respect to each Pension Plan,
and (y) copies of such other documents or governmental reports or filings
relating to any Employee Benefit Plan as Administrative Agent shall reasonably
request;

 

(i) Financial Plan. (1) As soon as
practicable and in any event no later than thirty (30) days after the beginning
of each Fiscal Year, a consolidated budget and/or financial forecast with
respect to the statement of operations for such Fiscal Year (a “Financial Plan”), including a Financial
Plan of Company and its Subsidiaries for such Fiscal Year containing monthly
plans of the then-upcoming Fiscal Year and quarterly plans thereafter through
Fiscal Year 2008, together with a pro forma Compliance Certificate for each
such Fiscal Year and an explanation of the assumptions on which such forecasts
are based; and (2) reasonably promptly after each modification of the Financial
Plan by management and approval thereof by the Board of Directors, a copy of
such modification;

 

(j) Insurance Report. As soon as practicable
and in any event within 90 days following the end of each Fiscal Year, a report
in form and substance satisfactory to Administrative Agent outlining all
material insurance coverage maintained as of the date of such report by Company
and its Subsidiaries and all material insurance coverage planned to be
maintained by Company and its Subsidiaries in the immediately succeeding Fiscal
Year;

 

(k) Notice of Submissions to Governmental
Authorities. Promptly after submission of any material documents to any
Governmental Authority in connection with any investigation of any Credit Party
other than routine inquiries by such Governmental Authority, to the fullest
extent permitted

 

51

 

by
applicable law, notice, in reasonable detail, of the furnishing of such
documents and information to such Governmental Authority; following the receipt
of such notice, the Administrative Agent on reasonable notice to the Credit
Party shall have the right to review copies of such documents and information
during the business hours of the Credit Party at the Company’s executive
offices; provided, however, that the Credit Party shall not be
obligated to furnish such notice or make such documents available for review,
as the case may be, to the extent that doing so would invalidate any privileged
status granted by such Governmental Authority with respect to the information
contained in such notice or in such documents and information, respectively, in
which case, the Credit Party shall furnish a notice, or a summary of the
documents or information so provided, respectively, that does not invalidate
such privilege;

 

(l) Notice Regarding Material Contracts.
Promptly, and in any event within ten Business Days (i) after any Material
Contract of Company or any of its Subsidiaries is terminated or amended in a
manner that is materially adverse to Company or such Subsidiary, as the case
may be, or (ii) any new Material Contract is entered into, a written statement
describing such event, with copies of such material amendments or new
contracts, delivered to Administrative Agent (to the extent such delivery is
permitted by the terms of the applicable Material Contract, provided, no
such prohibition on delivery shall be effective if it were bargained for by
Company or its applicable Subsidiary with the intent of avoiding compliance
with this Section 5.1(l)), and an explanation of any actions being taken with
respect thereto;

 

(m) FDA Violation Notices. Promptly, and in
any event within 5 Business Days after any Credit Party has Knowledge of any
material violation, claim, complaint, charge or receipt of any material
violation, claim, complaint or charge of or under the Food and Drug Act or any
material applicable statutes, rules, regulations, guidelines, policies orders
or directives administered or issued by the FDA, including without limitation
receipt by any Credit Party or any of its Subsidiaries of any Product Recall
Notice, other FDA notice satisfying the foregoing materiality standard or
amendment to such a previous Product Recall Notice or FDA notice that is
required to be disclosed under this Section 5.1(m), a statement of an
Authorized Officer setting forth the material details of such occurrence and
the actions, if any, which such Credit Party proposes to take with respect thereto
and in the case of a written document evidencing such event, together with a
true, correct and complete copy of such Product Recall Notice, FDA Notice or
amendment or other notice, as the case may be (other than to the extent that
provision of such documents or information to the Agents and the Lenders would
invalidate any privileged status granted by such Governmental Authority with
respect to such documents or information, in which case, the Credit Parties
shall furnish a summary of the documents or information so provided that does
not invalidate such privilege);

 

(n) Information Regarding Collateral. (a)
Company will furnish to Collateral Agent prompt written notice of any change
(i) in any Credit Party’s corporate name, (ii) in any Credit Party’s identity
or corporate structure or (iii) in any Credit Party’s Federal Taxpayer
Identification Number. Company agrees not to effect or permit any change
referred to in the preceding sentence unless all filings have been made under
the UCC or otherwise that are required in order for Collateral Agent to
continue at all times following such change to have a valid, legal and
perfected Third Priority Lien in all the Collateral (except the Working Capital
Collateral, in which Collateral Agent will have a valid, legal and perfected
fourth lien) and for the Collateral Agent at all times following such change to
have a valid, legal and perfected Third Priority Lien (except the Working
Capital Collateral, in which Collateral Agent will have a valid, legal and
perfected fourth lien), as contemplated in the Collateral Documents. Company
also agrees promptly to notify Collateral Agent if any material portion of the
Collateral is damaged or destroyed;

 

52

 

(o) Annual Collateral Verification. At the
time of delivery of the annual financial statements with respect to the
preceding Fiscal Year pursuant to Section 5.1(c), Company shall deliver to
Collateral Agent an Officer’s Certificate (i) confirming that there has been no
change in such information since the date of the Collateral Questionnaire
delivered on the Closing Date or identifying such changes should any exist, and
(ii) certifying that all UCC financing statements (including fixtures filings,
as applicable) or other appropriate filings, recordings or registrations, have
been filed of record in each governmental, municipal or other appropriate
office in each jurisdiction identified pursuant to clause (i) above to the
extent necessary to protect and perfect the security interests under the
Collateral Documents for a period of not less than 18 months after the date of
such certificate (except as noted therein with respect to any continuation
statements to be filed within such period); and

 

(p) Other Information. (A) Promptly upon
their becoming available, copies of (i) all financial statements, financial
reports, notices and proxy statements sent or made available generally by
Company to its security holders acting in such capacity or by any Subsidiary of
Company to its security holders other than Company or another Subsidiary of
Company, (ii) all regular and periodic financial reports, reports filed under
the Exchange Act and all registration statements and prospectuses, if any,
filed by Company or any of its Subsidiaries with any securities exchange or
with the Securities and Exchange Commission, and (iii) all press releases and
other statements made available generally by Company or any of its Subsidiaries
to the public concerning material developments in the business of Company or
any of its Subsidiaries, and (B) such other information and data with respect
to Company or any of its Subsidiaries as from time to time may be reasonably
requested by Administrative Agent or any Lender.

 

5.2. Existence. Except as otherwise permitted under Section
6.9, each Credit Party will, and will cause each of its Subsidiaries to, at all
times preserve and keep in full force and effect its existence and all rights
and franchises, licenses and permits material to its business; provided,
no Credit Party or any of its Subsidiaries shall be required to preserve any
such right or franchise, licenses or permits if such Person’s board of
directors (or similar governing body) shall determine that the preservation
thereof is no longer desirable in the conduct of the business of such Person,
and that the loss thereof is not disadvantageous in any material respect to
such Person or to Lenders.

 

5.3. Payment of Taxes and Claims. Each Credit Party will, and will cause each
of its Subsidiaries to, pay all material Taxes imposed upon it or any of its
properties or assets or in respect of any of its income, businesses or
franchises before any penalty or fine accrues thereon, and all claims
(including claims for labor, services, materials and supplies) for sums that
have become due and payable and that by law have or may become a Lien upon any
of its properties or assets, prior to the time when any penalty or fine shall
be incurred with respect thereto; provided, no such Tax or claim need be
paid if it is being contested in good faith by appropriate proceedings promptly
instituted and diligently conducted, so long as (a) adequate reserve or other
appropriate provision, as shall be required in conformity with GAAP shall have
been made therefor, and (b) in the case of a Tax or claim which has or may
become a Lien against any of the Collateral, such contest proceedings
conclusively operate to stay the sale of any portion of the Collateral to
satisfy such Tax or claim. No Credit Party will, nor will it permit any of its Subsidiaries
to, file or consent to the filing of any consolidated income tax return with
any Person (other than Company or any of its Subsidiaries).

 

5.4. Maintenance of Properties. Each Credit Party will, and will cause each
of its Subsidiaries to, maintain or cause to be maintained in good repair,
working order and condition, ordinary wear and tear excepted, all material
properties used or useful in the business of Company and its Subsidiaries and
from time to time will make or cause to be made all commercially reasonable
repairs, renewals and replacements thereof.

 

53

 

5.5. Insurance. Company will maintain or cause to be
maintained, with financially sound and reputable insurers, such public
liability insurance, third-party property damage insurance and casualty
insurance with respect to liabilities, losses or damage in respect of the
assets, properties and businesses of Company and its Subsidiaries as may
customarily be carried or maintained under similar circumstances by Persons of
established reputation engaged in similar businesses, in each case in such
amounts (giving effect to self-insurance), with such deductibles, covering such
risks and otherwise on such terms and conditions as shall be customary for such
Persons. Without limiting the generality of the foregoing, Company will
maintain or cause to be maintained replacement value casualty insurance on the
Collateral under such policies of insurance, with such insurance companies, in
such amounts, with such deductibles, and covering such risks as are at all
times carried or maintained under similar circumstances by Persons of
established reputation engaged in similar businesses. Each such policy of
insurance (other than directors and officers insurance policies) shall (i) name
Administrative Agent, on behalf of Lenders as an additional insured thereunder
as its interests may appear, (ii) in the case of each casualty insurance policy
for which claim payments are payable to the Company or its Subsidiaries, contain
a loss payable clause or endorsement, satisfactory in form and substance to
Administrative Agent, that names Administrative Agent, on behalf of Lenders as
the loss payee thereunder, and (iii) in the case of all insurance policies
(other than directors and officers insurance), provide for at least thirty days’
prior written notice to Administrative Agent of any modification or
cancellation of such policy. Notwithstanding clause (ii) of the preceding
sentence, under any insurance policy in which Company or its Subsidiaries are
the loss payees, the Company shall have the right to reinvest insurance
proceeds therefrom to the extent provided in Section 2.14(b).

 

5.6. Inspections. Each Credit Party will, and will cause each
of its Subsidiaries to, permit any authorized representatives designated by any
Lender to visit and inspect any of the properties of any Credit Party and any
of its respective Subsidiaries, to inspect, copy and take extracts from its and
their financial and accounting records, and to discuss its and their affairs,
finances and accounts with its and their Responsible Officers, all upon
reasonable notice and at such reasonable times during normal business hours and
as often as may reasonably be requested; provided, however, that
unless an Event of Default shall have occurred and be continuing, the Lenders
shall conduct such inspections so as to avoid undue interference with the
operations of the Company and its Subsidiaries. Upon request of any Lender,
Company shall make reasonable efforts to cause their independent public
accountants to be available for such discussion.

 

5.7. Lenders Meetings. Company will, upon the reasonable advance
request of Administrative Agent or Requisite Lenders, participate in a meeting
of Administrative Agent and Lenders once during each Fiscal Year (to be held at
such location as may be agreed to by Company and Administrative Agent) at such
time as may be agreed to by Company and Administrative Agent.

 

5.8. Compliance with Laws. Each Credit Party will comply, and shall
cause each of its Subsidiaries and all other Persons, if any, on or occupying
any Facilities to comply, with the requirements of all applicable laws, rules,
regulations and orders of any Governmental Authority (including all
Environmental Laws, FDA Regulations and HHS Regulations), noncompliance with
which could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect.

 

54

5.9. Environmental.

 

(a) Environmental Disclosure. Company will
deliver to Administrative Agent and Lenders:

 

(i)
as soon as practicable, copies of all environmental audits, investigations,
analyses and reports of any kind or character that are in the control of or are
reasonably available to Company, whether prepared by personnel of Company or
any of its Subsidiaries or by independent consultants, Governmental Authorities
or any other Persons, with respect to significant environmental matters at any
Facility or with respect to any Environmental Claims that, in any such case,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect;

 

(ii)
promptly upon the occurrence thereof, written notice describing in reasonable
detail (1) any Release required to be reported to any federal, state or local
Governmental Authority under any applicable Environmental Laws that,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect, and (2) any remedial action taken by Company or any
other Person in response to (A) any Hazardous Materials Activities the
existence of which has a reasonable possibility of resulting in one or more
Environmental Claims that, individually or in the aggregate, could reasonably
be expected to have a Material Adverse Effect, or (B) any Environmental Claims
that, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect;

 

(iii)
as soon as practicable following the sending or receipt thereof by Company or
any of its Subsidiaries, a copy of any and all written communications (provided,
however, that Company shall not be obligated under the foregoing
provision to furnish any information that would result in its waiver of a
privilege), with respect to (1) any Environmental Claims that, individually or
in the aggregate, have a reasonable possibility of giving rise to a Material
Adverse Effect, (2) any Release required to be reported to any federal, state
or local Governmental Authority that, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect, and (3) any request
for information from any Governmental Authority that suggests such agency is
investigating whether Company or any of its Subsidiaries may be potentially
responsible for any Hazardous Materials Activity that could reasonably be
expected to have a Material Adverse Effect;

 

(iv)
prompt written notice describing in reasonable detail (1) any proposed
acquisition of stock, assets, or property by Company or any of its Subsidiaries
that could reasonably be expected to (A) expose Company or any of its
Subsidiaries to, or result in, Environmental Claims that could reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect
or (B) affect the ability of Company or any of its Subsidiaries to maintain in
full force and effect all material Governmental Authorizations required under
any Environmental Laws for their respective operations, the absence of which
could be reasonably expected to have a Material Adverse Effect and (2) any
proposed action to be taken by Company or any of its Subsidiaries to modify
current operations in a manner that could reasonably be expected to subject
Company or any of its Subsidiaries to any additional material obligations or
requirements under any Environmental Laws and which could reasonably be
expected to have a Material Adverse Effect; and

 

(v)
with reasonable promptness, such other documents and information as from time
to time may be reasonably requested by Administrative Agent in relation to any

 

55

 

matters disclosed pursuant
to this Section 5.9(a); provided, however, that Company shall not
be obligated under the foregoing provision to furnish any information to the
extent that furnishing such information would result in its waiver of a
privilege.

 

(b) Hazardous Materials Activities, Etc. Each
Credit Party shall promptly take, and shall cause each of its Subsidiaries
promptly to take, any and all commercially reasonable actions necessary to (i)
avoid engaging in any Hazardous Materials Activities that would constitute a
violation of applicable Environmental Laws that could reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect, (ii) cure
any violation of applicable Environmental Laws by such Credit Party or its
Subsidiaries that could reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect, and (iii) make an appropriate response to
any Environmental Claim against such Credit Party or any of its Subsidiaries
and discharge any obligations it may have to any Person thereunder where
failure to do so could reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect.

 

5.10. Subsidiaries. In the event that any Person becomes a
direct or indirect Domestic Subsidiary of Company, Company shall (a)
concurrently with such Person becoming a Subsidiary, cause such Domestic
Subsidiary to become a Guarantor Subsidiary hereunder and a Grantor under the
Pledge and Security Agreement by executing and delivering to Administrative
Agent and Collateral Agent a Counterpart Agreement, and (b) take all such
actions and execute and deliver, or cause to be executed and delivered, to
Administrative Agent all such documents, instruments, agreements, and
certificates as are similar (and as are relevant) to those described in
Sections 3.1(b), 3.1(j), 3.1(m) and 3.1(n). In the event that any Person
becomes a Foreign Subsidiary of Company, the Company shall (a) cause such
Foreign Subsidiary to be wholly owned by a Domestic Subsidiary of the Company
that is a Special Purpose Entity and (b) promptly cause such Domestic
Subsidiary to deliver, all such documents, instruments, agreements, and
certificates as are similar to those described in Sections 3.1(b), and Company
shall take, or shall cause such Domestic Subsidiary to take all of the
commercially reasonable actions referred to in Section 3.1(j)(i) necessary to
grant and to perfect a Third Priority Lien in favor of Collateral Agent, for
the benefit of Secured Parties, under the Pledge and Security Agreement in 65%
of the Capital Stock of such Foreign Subsidiary. With respect to each such
Subsidiary, Company shall promptly send to Administrative Agent written notice
setting forth with respect to such Person (i) the date on which such Person
became a Subsidiary of Company, and (ii) all of the data required to be set
forth in Schedules 4.1 and 4.2 with respect to such Subsidiary of Company; provided,
such written notice shall be deemed to supplement Schedule 4.1 and 4.2 for all
purposes hereof. For the avoidance of doubt, each direct or indirect Domestic
Subsidiary shall remain a Guarantor Subsidiary and, except in the case of RP
Sub No. 1, a grantor under the Pledge and Security Agreement at all times until
all Loans are paid in full.

 

5.11. Additional Material Real
Estate Assets. In the
event that any Credit Party acquires a Material Real Estate Asset or a Real
Estate Asset owned or leased on the Closing Date becomes a Material Real Estate
Asset and such interest has not otherwise been made subject to the Lien of the
Collateral Documents in favor of Collateral Agent, for the benefit of Secured
Parties, then such Credit Party, contemporaneously with acquiring such Material
Real Estate Asset, shall take all such actions and execute and deliver, or
cause to be executed and delivered, all such mortgages, documents, instruments,
agreements, opinions and certificates with respect to each such Material Real
Estate Asset that Collateral Agent shall reasonably request to create in favor
of Collateral Agent, for the benefit of Secured Parties, a valid and, subject
to any filing and/or recording referred to herein, perfected Second Priority
Lien in such Material Real Estate Assets and any related personal property. In
addition to the foregoing, Company shall, at the request of Requisite Lenders,
deliver, from time to time, to Administrative Agent such appraisals of Real
Estate Assets as are reasonably requested by any Agent or Requisite Lenders.

 

56

 

5.12. Segregated Account for
Working Capital Collateral. If Receivables-Related Assets include lockboxes and other depositary
accounts into which the proceeds of Receivables are deposited, Company agrees
that all such lockboxes and other depositary accounts will be segregated
accounts into which no other funds of the Company shall be deposited.

 

5.13. [RESERVED].

 

5.14. Further Assurances. At any time or from time to time upon the
request of Administrative Agent, each Credit Party will, at its expense,
promptly execute, acknowledge and deliver such further documents and do such
other acts and things as Administrative Agent, Collateral Agent or Requisite
Lenders may reasonably request in order to effect fully the purposes of the
Credit Documents. In furtherance and not in limitation of the foregoing, each
Credit Party shall take such actions as Administrative Agent, Collateral Agent
or Requisite Lenders may reasonably request from time to time to ensure that
the Obligations are guarantied by the Guarantor Subsidiaries and are secured by
substantially all of the assets of Company and its Subsidiaries and all of the
outstanding Capital Stock of Company and its Subsidiaries (subject to
limitations contained in the Credit Documents with respect to Foreign
Subsidiaries).

 

5.15. Personal Property Collateral
Access Agreement. The
Company shall use reasonable efforts to deliver a Personal Property Collateral
Access Agreement executed by the applicable Credit Party and by Priority
Healthcare Corporation with respect to finished-goods or non-bulk sample
Inventory (as defined in the Pledge and Security Agreement) warehoused at
Priority Healthcare Corporation facilities located at 2450 Spiegel Drive,
Groveport, Ohio 43125.

 

SECTION 6. NEGATIVE COVENANTS

 

Each Credit Party covenants and agrees that, so long
as any Commitment is in effect and until payment in full of all Obligations,
such Credit Party shall perform, and shall cause each of its Subsidiaries to
perform, all covenants in this Section 6.

 

6.1. Indebtedness. No Credit Party shall, nor shall it permit
any of its Subsidiaries to, directly or indirectly, create, incur, assume or
guaranty, or otherwise become or remain directly or indirectly liable (any of
the foregoing, “incur”) with
respect to any Indebtedness; provided, however, that any Credit
Party shall be permitted to incur any such Indebtedness if, on the date of such
incurrence, and after giving pro forma effect thereto, (a) no Default or Event
of Default shall have occurred and be continuing or would occur after giving
effect to such incurrence, and (b) the Loan-to-Value Ratio shall be less than
0.6 as of the date of incurrence of such Indebtedness; provided, further,
notwithstanding the first part of this sentence, any Credit Party may incur the
following types of Indebtedness, without duplication:

 

(a) the Obligations;

 

(b) Indebtedness of any Guarantor Subsidiary to
Company or to any other Guarantor Subsidiary, or of Company to any Guarantor
Subsidiary; provided, (i) all such Indebtedness shall be evidenced by
promissory notes and all such notes shall be subject to a Third Priority Lien
pursuant to the Pledge and Security Agreement, (ii) all such Indebtedness shall
be unsecured and subordinated in right of payment to the payment in full of the
Obligations pursuant to the terms of the applicable promissory notes or an
intercompany subordination agreement that in any such case, is reasonably
satisfactory to Administrative Agent, and (iii) any payment by any such
Guarantor Subsidiary under any guaranty of the Obligations shall result in a
pro tanto reduction of the amount of any Indebtedness owed by such Subsidiary
to Company or to any of its Subsidiaries for whose benefit such payment is
made;

 

57

 

(c) (i) the First-Lien Term Loan and any permitted
refinancings thereof on substantially similar terms, in an amount no greater
than the remaining principal amount thereunder at the time of such refinancing,
plus allowances for any interest, fees, expenses and premiums payable under the
First-Lien Term Loan Agreement, and (ii) the Second-Lien Term Loan and any
permitted refinancings thereof on substantially similar terms, in an amount no
greater than the remaining principal amount thereunder at the time of such
refinancing, plus allowances for any interest, fees, expenses and premiums
payable under the Second-Lien Term Loan Agreement;

 

(d) Indebtedness incurred by Company or any of its
Subsidiaries arising from agreements providing for indemnification, adjustment
of purchase price or similar obligations, in connection with Permitted
Acquisitions or permitted dispositions of any business, assets or Subsidiary of
Company or any of its Subsidiaries;

 

(e) Indebtedness which may be deemed to exist
pursuant to any performance, statutory, appeal or similar obligations incurred
in the ordinary course of business;

 

(f) Indebtedness in respect of netting services,
overdraft protections and otherwise in connection with Deposit Accounts;

 

(g) guaranties in the ordinary course of business of
the obligations of suppliers, customers, franchisees and licensees of Company
and its Subsidiaries;

 

(h) guaranties by Company of Indebtedness of a
Guarantor Subsidiary (other than RP Sub No. 1) or guaranties by a Subsidiary of
Company of Indebtedness of Company or a Guarantor Subsidiary, with respect, in
each case, to Indebtedness otherwise permitted to be incurred pursuant to this
Section 6.1;

 

(i) reimbursement obligations in respect of letters
of credit and surety bonds issued to support obligations of Company and its
Subsidiaries in the ordinary course of business in an aggregate amount not to
exceed at any time $15,000,000;

 

(j) Indebtedness with respect to Capital Leases (i)
with respect to the Company’s principal offices at Liberty Corner, New Jersey,
if such offices are held under a Capital Lease, in an aggregate amount not to
exceed at any time $10,000,000 and (ii) otherwise in an aggregate amount not to
exceed at any time $5,000,000;

 

(k) purchase money Indebtedness, in an aggregate
amount for all Indebtedness under this clause (k) not to exceed at any time
$14,000,000 (including Indebtedness acquired or assumed in connection with a
Permitted Acquisition); provided, any such Indebtedness shall be secured
only by the asset acquired in connection with the incurrence of such
Indebtedness;

 

(l) the Permitted Working Capital Facility;

 

(m) Indebtedness evidenced by Hedge Agreements
entered into in order to manage existing or anticipated interest rate, exchange
rate or commodity price risks and not for speculative purposes;

 

(n) Indebtedness to a PSF Counterpart in respect of
Eligible Product-Specific Financings;

 

58

 

(o) so long as no Event of Default shall be in
existence or would occur as a result of the incurrence thereof, other
Indebtedness of the Company and/or its Subsidiaries, in an aggregate amount for
all Indebtedness under this clause (o) not to exceed $50,000,000 at any time
outstanding, that is (i) unsecured and (ii) junior in right of payment to the
payment of the Indebtedness arising or existing under this Agreement and the
other Credit Documents, and the First-Lien Term Loan and Second-Lien Term Loan,
and the terms of which require no payments to be made, and under which no
payments of principal, interest (if any), fees, expenses or any other payment
are made, prior to at least one year after the Maturity Date; provided, that
such Indebtedness is subordinated to the Obligations and the Third Priority
Lien of the Collateral Agent pursuant to an intercreditor agreement with the
lenders under such subordinated Indebtedness in form and substance reasonably
acceptable to the Collateral Agent;

 

(p) Indebtedness with respect to leases and
financings of vehicles for use by employees in the ordinary course of business,
with such initial amounts, as of the Closing Date, as described in Schedule
6.1(p); provided, that financings that are securitizations are
specifically excluded; and

 

(q) Indebtedness incurred in the ordinary course of
business to customs and revenue authorities consisting of the obligation to pay
customs duties in connection with the importation of goods.

 

6.2. Liens. No Credit Party shall, nor shall it permit
any of its Subsidiaries to, directly or indirectly, create, incur, assume or
permit to exist any Lien on or with respect to any property or asset of any
kind (including any document or instrument in respect of goods or accounts
receivable) of Company or any of its Subsidiaries, whether now owned or
hereafter acquired, or any income or profits therefrom, or file or permit the
filing of, or permit to remain in effect, any financing statement or other
similar notice of any Lien with respect to any such property, asset, income or
profits under the UCC of any State or under any similar recording or notice
statute, except, without duplication:

 

(a) Subject to the terms of the Term Loan
Intercreditor Agreement and the Working Capital Intercreditor Agreement, Liens
in favor of Collateral Agent for the benefit of Secured Parties granted
pursuant to any Credit Document;

 

(b) Liens for Taxes, assessments or governmental
charges or levies the payment of which is not required under Section 5.3;

 

(c) statutory Liens of landlords, banks (and rights
of set-off), of carriers, warehousemen, mechanics, repairmen, workmen and
materialmen, and other similar Liens imposed by law (other than any such Lien
imposed pursuant to Section 401(a)(29) or 412(n) of the Internal Revenue Code
or by ERISA or securing Indebtedness for borrowed money unless permitted
pursuant to subsections (a), (e), (m), (n), (t), (u) or (w) of this Section
6.2), in each case incurred in the ordinary course of business (i) for amounts
not yet overdue or (ii) for amounts that are overdue and that (in the case of
any such amounts overdue for a period in excess of five days) are being
contested in good faith by appropriate proceedings, so long as such reserves or
other appropriate provisions, if any, as shall be required by GAAP shall have
been made for any such contested amounts;

 

(d) Liens incurred in the ordinary course of
business in connection with workers’ compensation, unemployment insurance and
other types of social security, or to secure the performance of tenders,
statutory obligations, appeal bonds, bids, leases, government contracts, trade
contracts and other similar obligations (exclusive of obligations for the
payment of borrowed money or other Indebtedness), so long as no foreclosure, sale
or similar proceedings have been commenced with respect to any portion of the
Collateral on account thereof;

 

59

 

(e) Liens on the Working Capital Collateral to
secure the obligations under the Permitted Working Capital Facility;

 

(f) any interest or title of a lessor or sublessor
under any lease of real estate permitted hereunder;

 

(g) Liens solely on any cash earnest money deposits
made by Company or any of its Subsidiaries in connection with any letter of
intent or purchase agreement permitted under the Credit Documents;

 

(h) purported Liens evidenced by the filing of
precautionary UCC financing statements relating solely to operating leases of
personal property entered into in the ordinary course of business;

 

(i) Liens in favor of customs and revenue
authorities arising as a matter of law to secure payment of customs duties in
connection with the importation of goods;

 

(j) Liens for Indebtedness permitted under Section
6.1(i), provided that such Liens encumber only Cash, Cash Equivalents or
Deposit Accounts in which the Collateral Agent does not have a Lien;

 

(k) licenses of patents, trademarks and other
intellectual property rights granted by Company or any of its Subsidiaries in
the ordinary course of business and not interfering in any respect with the
ordinary conduct of the business of Company or such Subsidiary;

 

(l) Liens described in Schedule 6.2(l), but not the
extension of coverage thereof to other property or assets;

 

(m) Liens securing Indebtedness permitted pursuant
to 6.1(k); provided, any such Lien shall encumber only the asset
acquired with the proceeds of such Indebtedness;

 

(n) Liens securing Indebtedness under the First-Lien
Term Loan Agreement and the Second-Lien Term Loan Agreement, provided,
that the holders of such Liens are subject to the Term Loan Intercreditor
Agreement and the Working Capital Intercreditor Agreement;

 

(o) [Reserved];

 

(p) Liens in connection with attachments and
judgments (including judgment or appeal bonds) not constituting an Event of
Default hereunder; provided, that the judgments secured shall, within 30
days after the entry thereof, have been discharged or execution thereof stayed
pending appeal, or shall have been discharged within 30 days after the
expiration of any such stay;

 

(q) easements, rights-of-way, restrictions
(including zoning restrictions), minor defects or irregularities in title and
other similar charges or encumbrances not, in any material respect, impairing
the use of the encumbered Property for its intended purposes;

 

(r) leases or subleases granted to others in the
ordinary course of business not interfering in any material respect with the
business of the Borrower and its Subsidiaries;

 

(s) normal and customary rights of setoff upon
deposits of cash in favor of banks or other depository institutions;

 

60

 

(t) Liens assumed in connection with a Permitted
Acquisition, so long as such Liens cover only the assets acquired pursuant to
such Permitted Acquisition and were not created in contemplation thereof;

 

(u) Liens on a specific Product and related
intellectual property rights and proceeds in favor of a PSF Counterpart in
respect of the related Product in connection with Indebtedness permitted under Section
6.1(n);

 

(v) Liens arising in connection with consignments or
similar arrangements for the sale of goods in the ordinary course of business;

 

(w) Liens on vehicles acquired with Indebtedness
permitted by Section 6.1(p).

 

(x) Liens arising in connection with purchases of
computer equipment and accessories, furniture and fixtures in an aggregate
amount not to exceed at any time $1,500,000 in fair market value; and

 

(y) additional Liens not otherwise permitted by the
foregoing clauses of this Section 6.2; provided, that such additional
Liens permitted by this clause (y) do not encumber property and assets which at
any time exceed $500,000 in fair market value.

 

6.3. Equitable Lien. If any Credit Party or any of its
Subsidiaries shall create or assume any Lien upon any of its properties or
assets, whether now owned or hereafter acquired, other than Permitted Liens, it
shall make or cause to be made effective provisions whereby the Obligations
will be secured by such Lien equally and ratably with any and all other
Indebtedness secured thereby as long as any such Indebtedness shall be so
secured; provided, notwithstanding the foregoing, this covenant shall
not be construed as a consent by Requisite Lenders to the creation or
assumption of any such Lien not otherwise permitted hereby.

 

6.4. No Further Negative Pledges. Except with respect to (a) specific
property encumbered to secure payment of Indebtedness permitted by Section
6.1(k) or to be sold pursuant to an executed agreement with respect to an Asset
Sale permitted under Section 6.9(c), (b) specific property as to which Liens
are permitted under Section 6.2 (provided any fourth lien of the Collateral
Agent is not thereby impaired), (c) property encumbered as collateral pursuant
to the First-Lien Security Agreement; the Third-Lien Security Agreement and the
Working Capital Facility Security Agreement, and (d) restrictions by reason of
customary provisions restricting assignments, subletting or other transfers
contained in leases, licenses and similar agreements entered into in the
ordinary course of business (provided that such restrictions are limited to the
property or assets secured by such Liens or the property or assets subject to
such leases, licenses or similar agreements, as the case may be) no Credit
Party nor any of its Subsidiaries shall enter into any agreement prohibiting
the creation or assumption of any Lien upon any of its properties or assets,
whether now owned or hereafter acquired.

 

6.5. Restricted Junior Payments. No Credit Party shall, nor shall it permit
any of its Subsidiaries or Affiliates through any manner or means or through
any other Person to, directly or indirectly, declare, order, pay, make or set
apart, or agree to declare, order, pay, make or set apart, any sum for any
Restricted Junior Payment except that Company may make payments required to
repurchase rights or obligations with respect to outstanding options granted
by, and restricted stock of, the Company pursuant to the rights of the holders
thereof and the obligations of Company with respect thereof in an aggregate
amount not to exceed $5,000,000 during the term of this Agreement. In addition
to the foregoing clause, a Credit Party may make a Restricted Junior Payment so
long as (i) no Default or Event

 

61

 

of
Default exists at the time of such Restricted Junior Payment or would occur
after giving effect thereto, (ii) the Company would be permitted to issue an
additional $1.00 of Indebtedness pursuant to clause (b) of the lead-in
paragraph of Section 6.1 after giving pro forma effect to such Restricted
Junior Payment; (iv) the aggregate amount of such Restricted Junior Payments
and all other Restricted Junior Payments since the Closing Date would not
exceed 50% of Company’s cumulative Consolidated Net Income accrued during the
period (treated as one accounting period) from the beginning of the first full
Fiscal Quarter commencing after March 31, 2005 to the end of the most recent
Fiscal Quarter for which financial statements are available.

 

6.6. Restrictions on Subsidiary
Distributions. Except
as provided in this Section 6.6, no Credit Party shall, nor shall it permit any
of its Subsidiaries to, create or otherwise cause or suffer to exist or become
effective any consensual encumbrance or restriction of any kind on the ability
of any Subsidiary of Company to (a) pay dividends or make any other
distributions on any of such Subsidiary’s Capital Stock owned by Company or any
other Subsidiary of Company, (b)
repay or prepay any Indebtedness owed by such Subsidiary to Company or any
other Subsidiary of Company, (c) make loans or advances to Company or any other
Subsidiary of Company, or (d) transfer any of its property or assets to Company
or any other Subsidiary of Company other than restrictions (i) in agreements
evidencing Indebtedness permitted by Section 6.1(k), that impose restrictions
on the property so acquired and (ii) permitted under Section 6.4.

 

6.7. Investments. No Credit Party shall, nor shall it permit
any of its Subsidiaries to, directly or indirectly, make or own any Investment
in any Person, including without limitation any Joint Venture, except:

 

(a) Investments in Cash and Cash Equivalents;

 

(b) equity Investments owned as of the Closing Date
in any Subsidiary and Investments made after the Closing Date in Guarantor
Subsidiaries (other than RP Sub No. 1) of Company;

 

(c) Investments (i) in any Securities received in
satisfaction or partial satisfaction thereof from financially troubled account
debtors and (ii) deposits, prepayments and other credits to suppliers made in
the ordinary course of business consistent with the past practices of Company
and its Subsidiaries;

 

(d) intercompany loans to the extent permitted under
Section 6.1(b);

 

(e) Investments in PSF Joint Ventures, subject to
the satisfaction of all terms and conditions contained in the definition of
Eligible Product Specific Financing;

 

(f) (i) loans and advances to employees of Company
and its Guarantor Subsidiaries (other than RP Sub No. 1) made in the ordinary
course of business in an aggregate principal amount not to exceed $3,500,000 at
any time outstanding, of which no more than $650,000 can be loans for purposes
other than for executive relocation or executive transition and (ii) Section
83(b) Loans to employees outstanding as of the date hereof made to fund the
early exercise of stock options in the amount of $5,500,000;

 

(g) Investments made in connection with Permitted
Acquisitions permitted pursuant to Section 6.9;

 

(h) Investments existing on the date hereof and
described in Schedule 6.7;

 

62

 

(i) receivables owing to Company or any of its
Subsidiaries or any receivables and advances to suppliers, in each case if
created, acquired or made in the ordinary course of business and payable or
dischargeable in accordance with customary trade terms;

 

(j) purchases of inventory, supplies, materials and
equipment or licenses, contributions or leases of intellectual property, in
each case in the ordinary course of business consistent with past practices;

 

(k) other Investments in an aggregate amount not to
exceed at any time $2,500,000; and

 

(l) Investments consisting of cash on deposit with
banks or other depository institutions solely to the extent required in connection
with the maintenance of deposit accounts in the ordinary course of business.

 

Notwithstanding
the foregoing, in no event shall any Credit Party make, or permit any of its
Subsidiaries to make, any Investment that results in or facilitates in any manner
any Restricted Junior Payment not otherwise permitted under the terms of
Section 6.5.

 

6.8. [RESERVED].

 

6.9. Fundamental Changes;
Disposition of Assets; Acquisitions. No Credit Party shall, nor shall it permit any of its Subsidiaries
to, enter into any transaction of merger or consolidation, or liquidate,
wind-up or dissolve itself (or suffer any liquidation or dissolution), or
convey, sell, lease or sublease (as lessor or sublessor), exchange, transfer or
otherwise dispose of, in one transaction or a series of transactions, all or
any part of its business, assets or property of any kind whatsoever, whether
real, personal or mixed and whether tangible or intangible, whether now owned
or hereafter acquired, or acquire by purchase or otherwise (other than
purchases or other acquisitions of inventory, materials and equipment and
Capital Expenditures in the ordinary course of business) the business, property
or fixed assets of, or stock or other evidence of beneficial ownership of, any
Person or any division or line of business or other business unit of any
Person, except:

 

(a) any wholly owned Subsidiary of Company may be
merged with or into Company or any Guarantor Subsidiary, or may be liquidated,
wound up or dissolved, or all or any part of its business, property or assets
may be conveyed, sold, leased, transferred or otherwise disposed of, in one
transaction or a series of transactions, to Company or any Guarantor
Subsidiary; provided, (i) in the case of such a merger, Company or such
Guarantor Subsidiary, as applicable shall be the continuing or surviving
Person, (ii) Company gives the Agents ten days’ prior written notice of such
action, (iii) no Default or Event of Default shall have occurred or be
continuing either before or after giving effect thereto, and (iv) the
Collateral Agent’s Liens in the Collateral shall not be affected in any manner
thereby; provided, further, for purposes of this Section 6.9, RP
Sub No. 1 shall not be considered a Guarantor Subsidiary.

 

(b) any Subsidiary (other than the Company) (i) that
is no longer useful in the business of the Company or (ii) of which liquidation
or dissolution is in the best interest of the Company, each as determined in
good faith and reasonable discretion by the Company, may dissolve, liquidate or
wind up its affairs at any time; provided, that (x) all assets of
such Subsidiary are transferred to another Credit Party, (y) such dissolution
is not materially disadvantageous to the Lenders, and (z) all Liens on assets
of such Subsidiary are maintained for the benefit of Collateral Agent
subsequent to any dissolution;

 

63

 

(c) sales or other dispositions described in clauses
(i), (ii) and (iii) of the definition of “Asset
Sale”;

 

(d) Asset Sales, provided, (1) except with
respect to the licensing of property in the ordinary course of business, the
consideration received for such assets shall be in an amount at least equal to
the fair market value thereof (determined in good faith by the board of
directors of Company (or similar governing body)), (2) no less than 80% thereof
shall be paid in Cash on the date of such sale or within six months thereafter,
excluding any sales of Axid® OS and (3) the
Net Asset Sale Proceeds thereof shall be applied as required by Section
2.14(a);

 

(e) disposals of obsolete, worn out or surplus
property;

 

(f) disposals of leased or financed automobiles in
the ordinary course of business;

 

(g) Permitted Acquisitions;

 

(h) Reinvestments permitted under Section 2.14(a) or
(b); and

 

(i) Investments made in accordance with Section 6.7.

 

6.10. Disposal of Subsidiary
Interests. Except for
any sale of all of its interests in the Capital Stock of any of its
Subsidiaries in compliance with the provisions of Section 6.9, no Credit Party
shall, nor shall it permit any of its Subsidiaries to, (a) directly or
indirectly sell, assign, pledge or otherwise encumber or dispose of any Capital
Stock of any of its Subsidiaries, except to qualify directors if required by
applicable law; or (b) permit any of its Subsidiaries directly or indirectly to
sell, assign, pledge or otherwise encumber or dispose of any Capital Stock of
any of its Subsidiaries, except to another Credit Party (subject to the
restrictions on such disposition otherwise imposed hereunder), or to qualify
directors if required by applicable law.

 

6.11. Sales and Lease-Backs. No Credit Party shall, nor shall it permit
any of its Subsidiaries to, directly or indirectly, become or remain liable as
lessee or as a guarantor or other surety with respect to any lease of any
property (whether real, personal or mixed), whether now owned or hereafter
acquired, which such Credit Party or such Subsidiary (a) has sold or
transferred or is to sell or to transfer to any other Person (other than
Company or any Guarantor Subsidiary), or (b) intends to use for substantially
the same purpose as any other property which has been or is to be sold or
transferred by such Credit Party to any Person (other than Company or any
Guarantor Subsidiary) in connection with such lease. For purposes of this
Section 6.11, RP Sub No. 1 shall not be considered a Guarantor Subsidiary.

 

6.12. Transactions with
Shareholders and Affiliates. No Credit Party shall, nor shall it permit any of its Subsidiaries
to, directly or indirectly, enter into or permit to exist any transaction
(including the purchase, sale, lease or exchange of any property or the
rendering of any service) with any holder of 5% or more of any class of Capital
Stock of Company or any of its Subsidiaries or with any Affiliate of Company or
of any such holder, on terms that are less favorable to Company or that
Subsidiary, as the case may be, than those that might be obtained at the time
from a Person who is not such a holder or Affiliate; provided, the
foregoing restriction shall not apply to (a) any transaction between Company
and any Guarantor Subsidiary (other than RP Sub No. 1); (b) reasonable and
customary fees paid and options granted to members of the board of directors
(or similar governing body) of Company and its Subsidiaries that are approved
by the board of directors of Company or such Subsidiary (or a committee
thereof); (c) compensation arrangements (including employment agreements,
option agreements and restricted stock agreements) for officers and other employees
of Company and its Subsidiaries entered into in the ordinary

 

64

 

course
of business that are approved by the board of directors of Company or such
Subsidiary (or a committee thereof); (d) transactions described in Schedule
6.12, including, with respect to officers or directors of Company, only those
transactions not in the ordinary course of business and not on arms’-length
terms; (e) any payments permitted under Section 6.5; (f) loans to employees,
directors, officers, shareholders or agents to the extent permitted under
Section 6.7(f); (g) Investments in any Credit Party or other Subsidiaries
existing on the Closing Date; (h) transactions entered into pursuant to or
contemplated by this Agreement, and (i) Investments (including Permitted
Acquisitions) permitted under Section 6.7(e) and (g) to the extent that such
Investment is approved by the board of directors of Company as being on terms
that are not less favorable to Company than those that might be obtained from a
Person who is not an Affiliate.

 

6.13. Conduct of Business. From and after the Closing Date, no Credit
Party shall, nor shall it permit any of its Subsidiaries to, engage in any
business other than (i) the businesses engaged in by such Credit Party on the
Closing Date and similar or related businesses and (ii) such other lines of
business as may be consented to by Requisite Lenders. From and after the
Closing Date, Company shall not permit RP Sub No. 1 to engage in any business
activities, incur any Indebtedness, grant or permit to exist any Liens, make
any Investments, or hold any property other than 903,420 shares of Capital
Stock of the Company.

 

6.14. [RESERVED].

 

6.15. Provisions Related to Joint
Ventures.
Notwithstanding anything to the contrary in this Agreement, Company shall not
(i) engage in any Asset Sale with a Joint Venture (excluding any PSF Joint
Ventures) in which Company has an equity interest or (ii) permit any such Joint
Venture (excluding any PSF Joint Ventures) to incur any Indebtedness.

 

6.16. Amendments or Waivers with
Respect to Certain Indebtedness. No Credit Party shall, nor shall it permit any of its Subsidiaries to
amend, waive or otherwise change the terms of the First-Lien Term Loan, the
Second-Lien Term Loan and the Permitted Working Capital Facility, except in
accordance with the terms of the Term Loan Intercreditor Agreement and the
Working Capital Intercreditor Agreement; provided, that the
Credit Parties shall be permitted to amend the First-Lien Term Loan, the Second-Lien
Term Loan and the Permitted Working Capital Facility, so long as any amendments
shall not materially and adversely affect the Credit Parties or the Lenders; provided,
however, that any amendments to the Permitted Working Capital Facility
shall not increase the principal amount of the facility such that it exceeds a
maximum amount of $40 million at any time outstanding in Fiscal Year 2005 and a
maximum amount of $50 million at any time outstanding after Fiscal Year 2005.

 

6.17. Fiscal Year. No Credit Party shall, nor shall it permit
any of its Subsidiaries to change its Fiscal Year-end from December 31.

 

6.18. RP Sub No. 1. Company shall not permit RP Sub No. 1 to,
and RP Sub No. 1 shall not, (i) become an operating subsidiary or (ii) acquire
or hold any assets other than any preferred shares already held by it as of the
Closing Date.

 

SECTION 7. GUARANTY

 

7.1. Guaranty of the Obligations. Subject to the provisions of Section 7.2,
Guarantor Subsidiaries jointly and severally hereby irrevocably and unconditionally
guaranty to Administrative Agent for the ratable benefit of the Beneficiaries
the due and punctual payment in full of all Obligations when the same shall
become due, whether at stated maturity, by required prepayment, declaration,

 

65

 

acceleration,
demand or otherwise (including amounts that would become due but for the
operation of the automatic stay under Section 362(a) of the Bankruptcy Code)
(collectively, the “Guaranteed Obligations”).

 

7.2. Contribution by Guarantor
Subsidiaries. All
Guarantor Subsidiaries desire to allocate among themselves (collectively, the “Contributing Guarantors”), in a fair and
equitable manner, their obligations arising under this Guaranty. Accordingly,
in the event any payment or distribution is made on any date by a Guarantor
Subsidiary (a “Funding Guarantor”)
under this Guaranty such that its Aggregate Payments exceeds its Fair Share as
of such date, such Funding Guarantor shall be entitled to a contribution from
each of the other Contributing Guarantors in an amount sufficient to cause each
Contributing Guarantor’s Aggregate Payments to equal its Fair Share as of such
date. “Fair Share” means, with
respect to a Contributing Guarantor as of any date of determination, an amount
equal to (a) the ratio of (i) the Fair Share Contribution Amount with respect
to such Contributing Guarantor to (ii) the aggregate of the Fair Share
Contribution Amounts with respect to all Contributing Guarantors multiplied by
(b) the aggregate amount paid or distributed on or before such date by all
Funding Guarantors under this Guaranty in respect of the obligations
Guaranteed. “Fair Share Contribution Amount”
means, with respect to a Contributing Guarantor as of any date of
determination, the maximum aggregate amount of the obligations of such
Contributing Guarantor under this Guaranty that would not render its
obligations hereunder or thereunder subject to avoidance as a fraudulent
transfer or conveyance under Section 548 of the Bankruptcy Code or any
comparable applicable provisions of state law; provided, solely for
purposes of calculating the “Fair Share
Contribution Amount” with respect to any Contributing Guarantor for
purposes of this Section 7.2, any assets or liabilities of such Contributing
Guarantor arising by virtue of any rights to subrogation, reimbursement or
indemnification or any rights to or obligations of contribution hereunder shall
not be considered as assets or liabilities of such Contributing Guarantor. “Aggregate Payments” means, with respect to
a Contributing Guarantor as of any date of determination, an amount equal to
(1) the aggregate amount of all payments and distributions made on or before
such date by such Contributing Guarantor in respect of this Guaranty (including,
without limitation, in respect of this Section 7.2), minus (2) the aggregate
amount of all payments received on or before such date by such Contributing
Guarantor from the other Contributing Guarantors as contributions under this
Section 7.2. The amounts payable as contributions hereunder shall be determined
as of the date on which the related payment or distribution is made by the
applicable Funding Guarantor. The allocation among Contributing Guarantors of
their obligations as set forth in this Section 7.2 shall not be construed in
any way to limit the liability of any Contributing Guarantor hereunder. Each
Guarantor Subsidiary is a third-party beneficiary to the contribution agreement
set forth in this Section 7.2.

 

7.3. Payment by Guarantor Subsidiaries. Subject to Section 7.2, Guarantor
Subsidiaries hereby jointly and severally agree, in furtherance of the
foregoing and not in limitation of any other right which any Beneficiary may
have at law or in equity against any Guarantor Subsidiary by virtue hereof,
that upon the failure of Company to pay any of the Guaranteed Obligations when
and as the same shall become due, whether at stated maturity, by required
prepayment, declaration, acceleration, demand or otherwise (including amounts
that would become due but for the operation of the automatic stay under Section
362(a) of the Bankruptcy Code), Guarantor Subsidiaries will upon demand pay, or
cause to be paid, in Cash, to Administrative Agent for the ratable benefit of
Beneficiaries, an amount equal to the sum of the unpaid principal amount of all
Guaranteed Obligations then due as aforesaid, accrued and unpaid interest on
such Guaranteed Obligations (including interest which, but for Company’s
becoming the subject of a case under the Bankruptcy Code, would have accrued on
such Guaranteed Obligations, whether or not a claim is allowed against Company
for such interest in the related bankruptcy case) and all other Guaranteed
Obligations then owed to Beneficiaries as aforesaid.

 

66

 

7.4. Liability of Guarantor
Subsidiaries Absolute.
Each Guarantor Subsidiary agrees that its obligations hereunder are
irrevocable, absolute, independent and unconditional and shall not be affected
by any circumstance that constitutes a legal or equitable discharge of a
guarantor or surety other than payment in full of the Guaranteed Obligations.
In furtherance of the foregoing and without limiting the generality thereof,
each Guarantor Subsidiary agrees as follows:

 

(a) this Guaranty is a guaranty of payment when due
and not of collectability. This Guaranty is a primary obligation of each
Guarantor Subsidiary and not merely a contract of surety;

 

(b) Administrative Agent may enforce this Guaranty
upon the occurrence of an Event of Default;

 

(c) the obligations of each Guarantor Subsidiary
hereunder are independent of the obligations of Company and the obligations of
any other guarantor (including any other Guarantor Subsidiary) of the
obligations of Company, and a separate action or actions may be brought and
prosecuted against such Guarantor Subsidiary whether or not any action is
brought against Company or any of such other guarantors and whether or not
Company is joined in any such action or actions;

 

(d) payment by any Guarantor Subsidiary of a
portion, but not all, of the Guaranteed Obligations shall in no way limit,
affect, modify or abridge any Guarantor Subsidiary’s liability for any portion
of the Guaranteed Obligations which has not been paid. Without limiting the
generality of the foregoing, if Administrative Agent is awarded a judgment in
any suit brought to enforce any Guarantor Subsidiary’s covenant to pay a
portion of the Guaranteed Obligations, such judgment shall not be deemed to
release such Guarantor Subsidiary from its covenant to pay the portion of the
Guaranteed Obligations that is not the subject of such suit, and such judgment
shall not, except to the extent satisfied by such Guarantor Subsidiary, limit,
affect, modify or abridge any other Guarantor Subsidiary’s liability hereunder
in respect of the Guaranteed Obligations;

 

(e) any Beneficiary, upon such terms as it deems
appropriate, without notice or demand and without affecting the validity or
enforceability hereof or giving rise to any reduction, limitation, impairment,
discharge or termination of any Guarantor Subsidiary’s liability hereunder,
from time to time may (i) renew, extend, accelerate, increase the rate of
interest on, or otherwise change the time, place, manner or terms of payment of
the Guaranteed Obligations; (ii) settle, compromise, release or discharge, or
accept or refuse any offer of performance with respect to, or substitutions
for, the Guaranteed Obligations or any agreement relating thereto and/or
subordinate the payment of the same to the payment of any other obligations;
(iii) request and accept other guaranties of the Guaranteed Obligations and
take and hold security for the payment hereof or the Guaranteed Obligations;
(iv) release, surrender, exchange, substitute, compromise, settle, rescind,
waive, alter, subordinate or modify, with or without consideration, any
security for payment of the Guaranteed Obligations, any other guaranties of the
Guaranteed Obligations, or any other obligation of any Person (including any
other Guarantor Subsidiary) with respect to the Guaranteed Obligations; (v)
enforce and apply any security now or hereafter held by or for the benefit of
such Beneficiary in respect hereof or the Guaranteed Obligations and direct the
order or manner of sale thereof, or exercise any other right or remedy that
such Beneficiary may have against any such security, in each case as such
Beneficiary in its discretion may determine consistent herewith or any
applicable security agreement, including foreclosure on any such security pursuant
to one or more judicial or nonjudicial sales, whether or not every aspect of
any such sale is commercially reasonable, and even though such action operates
to impair or extinguish any right of reimbursement or subrogation or other
right or remedy of any Guarantor Subsidiary against Company or any security for
the Guaranteed Obligations; and (vi) exercise any other rights available to it
under the Credit Documents; and

 

67

 

(f) this Guaranty and the obligations of Guarantor
Subsidiaries hereunder shall be valid and enforceable and shall not be subject
to any reduction, limitation, impairment, discharge or termination for any
reason (other than payment in full of the Guaranteed Obligations), including
the occurrence of any of the following, whether or not any Guarantor Subsidiary
shall have had notice or knowledge of any of them: (i) any failure or omission
to assert or enforce or agreement or election not to assert or enforce, or the
stay or enjoining, by order of court, by operation of law or otherwise, of the
exercise or enforcement of, any claim or demand or any right, power or remedy
(whether arising under the Credit Documents, at law, in equity or otherwise)
with respect to the Guaranteed Obligations or any agreement relating thereto,
or with respect to any other guaranty of or security for the payment of the
Guaranteed Obligations; (ii) any rescission, waiver, amendment or modification
of, or any consent to departure from, any of the terms or provisions (including
provisions relating to events of default) hereof, any of the other Credit
Documents or any agreement or instrument executed pursuant thereto, or of any
other guaranty or security for the Guaranteed Obligations, in each case whether
or not in accordance with the terms hereof or such Credit Document or any
agreement relating to such other guaranty or security; (iii) the Guaranteed
Obligations, or any agreement relating thereto, at any time being found to be
illegal, invalid or unenforceable in any respect; (iv) the application of
payments received from any source (other than payments received pursuant to the
other Credit Documents or from the proceeds of any security for the Guaranteed
Obligations, except to the extent such security also serves as collateral for
indebtedness other than the Guaranteed Obligations) to the payment of
indebtedness other than the Guaranteed Obligations, even though any Beneficiary
might have elected to apply such payment to any part or all of the Guaranteed
Obligations; (v) any Beneficiary’s consent to the change, reorganization or
termination of the corporate structure or existence of Company or any of its
Subsidiaries and to any corresponding restructuring of the Guaranteed
Obligations; (vi) any failure to perfect or continue perfection of a security
interest in any collateral which secures any of the Guaranteed Obligations;
(vii) any defenses, set-offs or counterclaims which Company may allege or
assert against any Beneficiary in respect of the Guaranteed Obligations, including
failure of consideration, breach of warranty, payment, statute of frauds,
statute of limitations, accord and satisfaction and usury; (viii) any
bankruptcy, insolvency, liquidation or dissolution of any Credit Party, provided,
that the foregoing shall not prevent the dissolution of RP Sub No. 1
pursuant to Section 6.9(a), and (ix) any other act or thing or omission, or
delay to do any other act or thing, which may or might in any manner or to any
extent vary the risk of any Guarantor Subsidiary as an obligor in respect of
the Guaranteed Obligations.

 

7.5. Waivers by Guarantor
Subsidiaries. Each
Guarantor Subsidiary hereby waives, for the benefit of Beneficiaries: (a) any
right to require any Beneficiary, as a condition of payment or performance by
such Guarantor Subsidiary, to (i) proceed against Company, any other guarantor
(including any other Guarantor Subsidiary) of the Guaranteed Obligations or any
other Person, (ii) proceed against or exhaust any security held from Company,
any such other guarantor or any other Person, (iii) proceed against or have
resort to any balance of any Deposit Account or credit on the books of any
Beneficiary in favor of Company or any other Person, or (iv) pursue any other
remedy in the power of any Beneficiary whatsoever; (b) any defense arising by
reason of the incapacity, lack of authority or any disability or other defense
of Company or any other Guarantor Subsidiary including any defense based on or
arising out of the lack of validity or the unenforceability of the Guaranteed
Obligations or any agreement or instrument relating thereto or by reason of the
cessation of the liability of Company or any other Guarantor Subsidiary from
any cause other than payment in full of the Guaranteed Obligations; (c) any
defense based upon any statute or rule of law which provides that the
obligation of a surety must be neither larger in amount nor in other respects
more burdensome than that of the principal; (d) any defense based upon any
Beneficiary’s errors or omissions in the administration of the Guaranteed
Obligations, except behavior which amounts to bad faith; (e) (i) any principles
or provisions of law, statutory or otherwise, which are or might be in conflict
with the terms hereof and any legal or equitable discharge of such Guarantor
Subsidiary’s obligations hereunder, (ii) any rights to set-offs, recoupments
and

 

68

 

counterclaims
against Beneficiaries, and (iii) promptness, diligence and any requirement that
any Beneficiary protect, secure, perfect or insure any Lien or any property
subject thereto; (f) notices, demands, presentments, protests, notices of
protest, notices of dishonor and notices of any action or inaction, including
acceptance hereof, notices of default hereunder or any agreement or instrument
related hereto, notices of any renewal, extension or modification of the
Guaranteed Obligations or any agreement related thereto, notices of any
extension of credit to Company and notices of any of the matters referred to in
Section 7.4 and any right to consent to any thereof; and (g) any defenses or
benefits that may be derived from or afforded by law which limit the liability
of or exonerate guarantors or sureties, or which may conflict with the terms
hereof.

 

7.6. Guarantor Subsidiaries’ Rights
of Subrogation, Contribution, etc. Until the Guaranteed Obligations shall have been indefeasibly paid in
full and the Commitments shall have terminated, each Guarantor Subsidiary
hereby waives any claim, right or remedy, direct or indirect, that such
Guarantor Subsidiary now has or may hereafter have against Company or any other
Guarantor Subsidiary or any of its assets in connection with this Guaranty or
the performance by such Guarantor Subsidiary of its obligations hereunder, in
each case whether such claim, right or remedy arises in equity, under contract,
by statute, under common law or otherwise and including without limitation (a)
any right of subrogation, reimbursement or indemnification that such Guarantor
Subsidiary now has or may hereafter have against Company with respect to the
Guaranteed Obligations, (b) any right to enforce, or to participate in, any
claim, right or remedy that any Beneficiary now has or may hereafter have
against Company, and (c) any benefit of, and any right to participate in, any
collateral or security now or hereafter held by any Beneficiary. In addition,
until the Guaranteed Obligations shall have been indefeasibly paid in full and
the Commitments shall have terminated, each Guarantor Subsidiary shall withhold
exercise of any right of contribution such Guarantor Subsidiary may have
against any other guarantor (including any other Guarantor Subsidiary) of the
Guaranteed Obligations, including, without limitation, any such right of
contribution as contemplated by Section 7.2. Each Guarantor Subsidiary further
agrees that, to the extent the waiver or agreement to withhold the exercise of
its rights of subrogation, reimbursement, indemnification and contribution as
set forth herein is found by a court of competent jurisdiction to be void or
voidable for any reason, any rights of subrogation, reimbursement or
indemnification such Guarantor Subsidiary may have against Company or against
any collateral or security, and any rights of contribution such Guarantor Subsidiary
may have against any such other guarantor, shall be junior and subordinate to
any rights any Beneficiary may have against Company, to all right, title and
interest any Beneficiary may have in any such collateral or security, and to
any right any Beneficiary may have against such other guarantor. If any amount
shall be paid to any Guarantor Subsidiary on account of any such subrogation,
reimbursement, indemnification or contribution rights at any time when all
Guaranteed Obligations shall not have been finally and indefeasibly paid in
full, such amount shall be held in trust for Administrative Agent on behalf of
Beneficiaries and shall forthwith be paid over to Administrative Agent for the
benefit of Beneficiaries to be credited and applied against the Guaranteed
Obligations, whether matured or unmatured, in accordance with the terms hereof.

 

7.7. Subordination of Other
Obligations. Any
Indebtedness of Company or any Guarantor Subsidiary now or hereafter held by
any Guarantor Subsidiary (the “Obligee Guarantor”)
is hereby subordinated in right of payment to the Guaranteed Obligations, and
any such indebtedness collected or received by the Obligee Guarantor after an
Event of Default has occurred and is continuing shall be held in trust for
Administrative Agent on behalf of Beneficiaries and shall forthwith be paid
over to Administrative Agent for the benefit of Beneficiaries to be credited
and applied against the Guaranteed Obligations but without affecting, impairing
or limiting in any manner the liability of the Obligee Guarantor under any
other provision hereof.

 

69

 

7.8. Continuing Guaranty. This Guaranty is a continuing guaranty and
shall remain in effect until all of the Guaranteed Obligations shall have been
paid in full and the Commitments shall have terminated. Each Guarantor
Subsidiary hereby irrevocably waives any right to revoke this Guaranty as to
future transactions giving rise to any Guaranteed Obligations.

 

7.9. Authority of Guarantor
Subsidiaries or Company.
It is not necessary for any Beneficiary to inquire into the capacity or powers
of any Guarantor Subsidiary or Company or the officers, directors or any agents
acting or purporting to act on behalf of any of them.

 

7.10. Financial Condition of
Company. Any Credit
Extension may be made to Company or converted from time to time without notice
to or authorization from any Guarantor Subsidiary regardless of the financial
or other condition of Company at the time of any such grant or conversion, as
the case may be. No Beneficiary shall have any obligation to disclose or
discuss with any Guarantor Subsidiary its assessment, or any Guarantor
Subsidiary’s assessment, of the financial condition of Company. Each Guarantor
Subsidiary has adequate means to obtain information from Company on a
continuing basis concerning the financial condition of Company and its ability
to perform its obligations under the Credit Documents, and each Guarantor
Subsidiary assumes the responsibility for being and keeping informed of the
financial condition of Company and of all circumstances bearing upon the risk
of nonpayment of the Guaranteed Obligations. Each Guarantor Subsidiary hereby
waives and relinquishes any duty on the part of any Beneficiary to disclose any
matter, fact or thing relating to the business, operations or conditions of
Company now known or hereafter known by any Beneficiary.

 

7.11. Bankruptcy, etc.

 

(a) The obligations of Guarantor Subsidiaries
hereunder shall not be reduced, limited, impaired, discharged, deferred,
suspended or terminated by any case or proceeding, voluntary or involuntary,
involving the bankruptcy, insolvency, receivership, reorganization, liquidation
or arrangement of Company or any other Guarantor Subsidiary or by any defense
which Company or any other Guarantor Subsidiary may have by reason of the
order, decree or decision of any court or administrative body resulting from
any such case or proceeding.

 

(b) Each Guarantor Subsidiary acknowledges and
agrees that any interest on any portion of the Guaranteed Obligations which
accrues after the commencement of any case or proceeding referred to in clause
(a) above (or, if interest on any portion of the Guaranteed Obligations ceases
to accrue by operation of law by reason of the commencement of such case or
proceeding, such interest which but for such case or proceeding would have
accrued on such portion of the Guaranteed Obligations, whether or not a claim
is allowed for such interest in the related case or proceeding) shall be
included in the Guaranteed Obligations because it is the intention of Guarantor
Subsidiaries and Beneficiaries that the Guaranteed Obligations which are
guaranteed by Guarantor Subsidiaries pursuant hereto should be determined
without regard to any rule of law or order which may relieve Company of any
portion of such Guaranteed Obligations. Guarantor Subsidiaries will permit any
trustee in bankruptcy, receiver, debtor in possession, assignee for the benefit
of creditors or similar Person to pay Administrative Agent, or allow the claim
of Administrative Agent in respect of, any such interest accruing after the
date on which such case or proceeding is commenced.

 

(c) In the event that all or any portion of the
Guaranteed Obligations are paid by Company, the obligations of Guarantor
Subsidiaries hereunder shall continue and remain in full force and effect or be
reinstated, as the case may be, in the event that all or any part of such
payment(s) are rescinded or recovered directly or indirectly from any
Beneficiary as a preference, fraudulent transfer or otherwise, and any such
payments which are so rescinded or recovered shall constitute Guaranteed
Obligations for all purposes hereunder.

 

70

 

7.12. Discharge of Guaranty Upon Sale
of Guarantor Subsidiary.
If all of the Capital Stock of any Guarantor Subsidiary or any of its
successors in interest hereunder shall be sold or otherwise disposed of
(including by merger or consolidation) in accordance with the terms and
conditions hereof, the Guaranty of such Guarantor Subsidiary or such successor
in interest, as the case may be, hereunder shall automatically be discharged
and released without any further action by any Beneficiary or any other Person
effective as of the time of such Asset Sale.

 

SECTION 8. EVENTS OF DEFAULT

 

8.1. Events of Default. If any one or more of the following
conditions or events shall occur:

 

(a) Failure to Make Payments When Due.
Failure by Company to pay (i) when due any principal of any Loan, whether at
stated maturity, by acceleration, by notice of voluntary prepayment, by
mandatory prepayment or otherwise; or (ii) any interest on any Loan or any fee
or any other amount due hereunder within three days after the date due; or

 

(b) Default in Other Agreements. (i) Failure
of any Credit Party or any of their respective Subsidiaries to pay when due any
principal of or interest on or any other amount payable in respect of one or
more items of Indebtedness (other than Indebtedness referred to in Section
8.1(a)) with an aggregate principal amount of $7,000,000 or more, in each case
beyond the grace period, if any, provided therefor; or (ii) breach or default
by any Credit Party with respect to any other material term of (1) one or more
items of Indebtedness in the individual or aggregate principal amounts referred
to in clause (i) above or (2) any loan agreement, mortgage, indenture or other
agreement relating to such item(s) of Indebtedness, in each case beyond the
grace period, if any, provided therefor, if the effect of such breach or
default is to cause that Indebtedness to become or be declared due and payable
(or redeemable) prior to its stated maturity or the stated maturity of any
underlying obligation, as the case may be; provided, that with
respect to any breach or default under the First-Lien Term Loan Agreement, such
event shall only constitute an Event of Default under this Agreement if such
event occurs and is not cured or waived within ninety (90) days after the
occurrence of such event (other than with respect to a default under Section
8.1(a) under the First-Lien Term Loan Agreement or acceleration under the
First-Lien Term Loan Agreement) and, provided, that with respect
to any breach or default under the Second-Lien Term Loan Agreement, such event
shall only constitute an Event of Default under this Agreement if such event
occurs and is not cured or waived within thirty (30) days after the occurrence
of such event (other than with respect to a default under Section 8.1(a) under
the Second-Lien Term Loan Agreement or acceleration under the Second-Lien Term
Loan Agreement); or

 

(c) Breach of Certain Covenants. Failure of
any Credit Party to perform or comply with any term or condition contained in
Section 2.6, Section 5.2 or Section 6; or

 

(d) Breach of Representations, etc. Any
representation, warranty, certification or other statement made by any Credit
Party in any Credit Document or in any statement or certificate by any Credit
Party or any of its Subsidiaries in writing pursuant hereto or thereto or in
connection herewith or therewith shall be false in any material respect as of
the date made; or

 

(e) Other Defaults Under Credit Documents.
Any Credit Party shall default in the performance of or compliance with any
term contained herein or any of the other Credit Documents, other than any such
term referred to in any other subsection of this Section 8.1, and such default
shall not have

 

71

 

been
remedied or waived within thirty (30) days (in the case of other provisions of
this Agreement) after the earlier of (i) a Responsible Officer of such Credit
Party becoming aware of such default or (ii) receipt by Company of notice from
Administrative Agent of such default; or

 

(f) Involuntary Bankruptcy; Appointment of
Receiver, etc. (i) A court of competent jurisdiction shall enter a decree
or order for relief in respect of Company or any of its Subsidiaries in an
involuntary case under the Bankruptcy Code or under any other applicable
bankruptcy, insolvency or similar law now or hereafter in effect, which decree
or order is not stayed; or any other similar relief shall be granted under any
applicable federal or state law; or (ii) an involuntary case shall be commenced
against Company or any of its Subsidiaries under the Bankruptcy Code or under
any other applicable bankruptcy, insolvency or similar law now or hereafter in
effect; or a decree or order of a court having jurisdiction in the premises for
the appointment of a receiver, liquidator, sequestrator, trustee, custodian or
other officer having similar powers over Company or any of its Subsidiaries, or
over all or a substantial part of its property, shall have been entered; or
there shall have occurred the involuntary appointment of an interim receiver,
trustee or other custodian of Company or any of its Subsidiaries for all or a
substantial part of its property; or a warrant of attachment, execution or
similar process shall have been issued against any substantial part of the
property of Company or any of its Subsidiaries, and any such event described in
this clause (ii) shall continue for sixty days without having been dismissed,
bonded or discharged; or

 

(g) Voluntary Bankruptcy; Appointment of
Receiver, etc. (i) Company or any of its Subsidiaries shall have an order
for relief entered with respect to it or shall commence a voluntary case under
the Bankruptcy Code or under any other applicable bankruptcy, insolvency or
similar law now or hereafter in effect, or shall consent to the entry of an
order for relief in an involuntary case, or to the conversion of an involuntary
case to a voluntary case, under any such law, or shall consent to the
appointment of or taking possession by a receiver, trustee or other custodian
for all or a substantial part of its property; or Company or any of its
Subsidiaries shall make any assignment for the benefit of creditors; or (ii)
Company or any of its Subsidiaries shall be unable, or shall fail generally, or
shall admit in writing its inability, to pay its debts as such debts become due;
or the board of directors (or similar governing body) of Company or any of its
Subsidiaries (or any committee thereof) shall adopt any resolution or otherwise
authorize any action to approve any of the actions referred to herein or in
Section 8.1(f); or

 

(h) Judgments and Attachments. Any money
judgment, writ or warrant of attachment or similar process involving (x) in any
individual case an amount in excess of $8,000,000 or (y) in the aggregate at
any time an amount in excess of $16,000,000 (in each case to the extent not
adequately covered by insurance as to which a solvent and unaffiliated
insurance company has acknowledged coverage) shall be entered or filed against
Company or any of its Subsidiaries or any of their respective assets and, in
the case of clause (x), shall remain undischarged, unvacated, unbonded or
unstayed for a period of sixty days (or in any event later than five days prior
to the date of any proposed sale thereunder); or

 

(i) Dissolution. Any order, judgment or
decree shall be entered against any Credit Party (except any inactive or
immaterial Subsidiary) decreeing the dissolution or split up of such Credit
Party and such order shall remain undischarged or unstayed for a period in
excess of thirty days; or

 

(j) Employee Benefit Plans. (i) There shall
occur one or more ERISA Events which individually or in the aggregate results
in or might reasonably be expected to result in liability of Company or any of
its Subsidiaries in excess of $7,000,000 during the term hereof; or (ii) there exists
any fact or circumstance that reasonably could be expected to result in the
imposition of a Lien or security interest under Section 412(n) of the Internal
Revenue Code or under ERISA.

 

72

 

(k) Change of Control. A Change of Control
shall occur; or

 

(l) Guaranties, Collateral Documents and other
Credit Documents. At any time after the execution and delivery thereof, (i)
the Guaranty for any reason, other than the satisfaction in full of all
Obligations or release thereof, shall cease to be in full force and effect
(other than in accordance with its terms) or shall be declared to be null and
void or any Guarantor Subsidiary shall repudiate its obligations thereunder,
(ii) this Agreement or any Collateral Document ceases to be in full force and
effect (other than by reason of a release of Collateral in accordance with the
terms hereof or thereof or the satisfaction in full of the Obligations in
accordance with the terms hereof) or shall be declared null and void, or
Collateral Agent shall not have or shall cease to have a valid and perfected
Lien in any Collateral purported to be covered by the Collateral Documents with
the priority required by the relevant Collateral Document, in each case for any
reason other than the failure of Collateral Agent or any Secured Party to take
any action within its control, or (iii) any Credit Party shall contest the
validity or enforceability of any Credit Document in writing or deny in writing
that it has any further liability, including with respect to future advances by
Lenders, under any Credit Document to which it is a party.

 

THEN, (1) upon the occurrence of any Event of Default described in Section
8.1(f) or 8.1(g), automatically, and (2) upon the occurrence of any other Event
of Default, at the request of (or with the consent of) Requisite Lenders, upon
notice to Company by Administrative Agent, (A) the Commitments, if any, of each
Lender having such Commitments shall immediately terminate; (B) each of the
following shall immediately become due and payable, in each case without
presentment, demand, protest or other requirements of any kind, all of which
are hereby expressly waived by each Credit Party: (I) the unpaid principal
amount of and accrued interest on the Loans, (II) any call premiums payable
under Section 2.14(g) (provided, that, in the event the Loans are
accelerated during the first year after the Closing Date, the call premium
payable shall be the call premium that would otherwise be applicable as if such
acceleration occurred after the first anniversary of the Closing Date but
before the second anniversary of the Closing Date), if and only if such Event
of Default was the direct result of a failure by Company to make a mandatory
prepayment pursuant to Section 2.14, and (III) all other Obligations; and (C)
Administrative Agent may cause Collateral Agent to enforce any and all Liens
and security interests created pursuant to Collateral Documents.

 

SECTION 9. AGENTS

 

9.1. Appointment of Agents. GSCP is hereby appointed Administrative
Agent hereunder and under the other Credit Documents and each Lender hereby
authorizes Administrative Agent to act as its agent in accordance with the
terms hereof and the other Credit Documents. Each Agent hereby agrees to act
upon the express conditions contained herein and the other Credit Documents, as
applicable. The provisions of this Section 9 are solely for the benefit of
Agents and Lenders and no Credit Party shall have any rights as a third-party
beneficiary of any of the provisions thereof. In performing its functions and
duties hereunder, each Agent shall act solely as an agent of Lenders and does
not assume and shall not be deemed to have assumed any obligation towards or
relationship of agency or trust with or for Company or any of its Subsidiaries.
The Company (on behalf of itself and its Affiliates) and each Lender
acknowledge that, in agreeing to serve on a temporary basis as Administrative
Agent hereunder, GSCP is acting solely in a ministerial capacity to facilitate
initial settlement of the transactions hereunder and was not involved in any
manner in the sale, syndication, distribution or placement of the Loans
hereunder.

 

9.2. Powers and Duties. Each Lender irrevocably authorizes each
Agent to take such action on such Lender’s behalf and to exercise such powers,
rights and remedies hereunder and under the other Credit Documents as are
specifically delegated or granted to such Agent by the terms hereof and
thereof, together with such powers, rights and remedies as are reasonably
incidental thereto. Each Agent shall

 

73

 

have
only those duties and responsibilities that are expressly specified herein and
the other Credit Documents. Each Agent may exercise such powers, rights and
remedies and perform such duties by or through its agents or employees. No
Agent shall have, by reason hereof or any of the other Credit Documents, a
fiduciary relationship in respect of any Lender; and nothing herein or any of
the other Credit Documents, expressed or implied, is intended to or shall be so
construed as to impose upon any Agent any obligations in respect hereof or any
of the other Credit Documents except as expressly set forth herein or therein.

 

9.3. General Immunity.

 

(a) No Responsibility for Certain Matters. No
Agent shall be responsible to any Lender for the execution, effectiveness,
genuineness, validity, enforceability, collectability or sufficiency hereof or
any other Credit Document or for any representations, warranties, recitals or
statements made herein or therein or made in any written or oral statements or
in any financial or other statements, instruments, reports or certificates or
any other documents furnished or made by any Agent to Lenders or by or on
behalf of any Credit Party to any Agent or any Lender in connection with the
Credit Documents and the transactions contemplated thereby or for the financial
condition or business affairs of any Credit Party or any other Person liable
for the payment of any Obligations, nor shall any Agent be required to
ascertain or inquire as to the performance or observance of any of the terms,
conditions, provisions, covenants or agreements contained in any of the Credit
Documents or as to the use of the proceeds of the Loans or as to the existence
or possible existence of any Event of Default or Default or to make any
disclosures with respect to the foregoing except as expressly set forth in the
Credit Documents. Anything contained herein to the contrary notwithstanding,
Administrative Agent shall not have any liability arising from confirmations of
the amount of outstanding Loans, except to the extent it would be liable
therefor pursuant to section 9.3(b).

 

(b) Exculpatory Provisions. No Agent nor any
of its officers, partners, directors, employees or agents shall be liable to
Lenders for any action taken or omitted by any Agent under or in connection
with any of the Credit Documents except to the extent caused by such Agent’s
gross negligence or willful misconduct. Each Agent shall be entitled to refrain
from any act or the taking of any action (including the failure to take an
action) in connection herewith or any of the other Credit Documents or from the
exercise of any power, discretion or authority vested in it hereunder or
thereunder unless and until such Agent shall have received instructions in
respect thereof from Requisite Lenders (or such other Lenders as may be
required to give such instructions under Section 10.5) and, upon receipt of
such instructions from Requisite Lenders (or such other Lenders, as the case
may be), such Agent shall be entitled to act or (where so instructed) refrain
from acting, or to exercise such power, discretion or authority, in accordance
with such instructions. Without prejudice to the generality of the foregoing,
(i) each Agent shall be entitled to rely, and shall be fully protected in
relying, upon any communication, instrument or document believed by it to be
genuine and correct and to have been signed or sent by the proper Person or
Persons, and shall be entitled to rely and shall be protected in relying on
opinions and judgments of attorneys (who may be attorneys for Company and its
Subsidiaries), accountants, experts and other professional advisors selected by
it; and (ii) no Lender shall have any right of action whatsoever against any
Agent as a result of such Agent acting or (where so instructed) refraining from
acting hereunder or any of the other Credit Documents in accordance with the
instructions of Requisite Lenders (or such other Lenders as may be required to
give such instructions under Section 10.5).

 

9.4. Agents Entitled to Act as
Lender. The agency
hereby created shall in no way impair or affect any of the rights and powers
of, or impose any duties or obligations upon, any Agent in its individual
capacity as a Lender hereunder. With respect to its participation in the Loans,
each Agent shall have the same rights and powers hereunder as any other Lender
and may exercise the same as if it were

 

74

 

not
performing the duties and functions delegated to it hereunder, and the term “Lender”
shall, unless the context clearly otherwise indicates, include each Agent in
its individual capacity. Any Agent and its Affiliates may accept deposits from,
lend money to, own securities of, and generally engage in any kind of banking,
trust, financial advisory or other business with Company or any of its
Affiliates as if it were not performing the duties specified herein, and may
accept fees and other consideration from Company for services in connection
herewith and otherwise without having to account for the same to Lenders.

 

9.5. Lenders’ Representations,
Warranties and Acknowledgment. Each Lender represents and warrants that it has made its own
independent investigation of the financial condition and affairs of Company and
its Subsidiaries in connection with Credit Extensions hereunder and that it has
made and shall continue to make its own appraisal of the creditworthiness of
Company and its Subsidiaries. No Agent shall have any duty or responsibility,
either initially or on a continuing basis, to make any such investigation or
any such appraisal on behalf of Lenders, except as proved herein, or to provide
any Lender with any credit or other information with respect thereto, whether
coming into its possession before the making of the Loans or at any time or
times thereafter, and no Agent shall have any responsibility with respect to
the accuracy of or the completeness of any information provided to Lenders.

 

9.6. Right to Indemnity. Each Lender, in proportion to its Pro Rata
Share, severally agrees to indemnify each Agent, to the extent that such Agent
shall not have been reimbursed by any Credit Party, for and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses (including counsel fees and disbursements) or
disbursements of any kind or nature whatsoever which may be imposed on,
incurred by or asserted against such Agent in exercising its powers, rights and
remedies or performing its duties hereunder or under the other Credit Documents
or otherwise in its capacity as such Agent in any way relating to or arising
out of this Agreement or the other Credit Documents; provided, no Lender
shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from such Agent’s gross negligence or willful misconduct. If any
indemnity furnished to any Agent for any purpose shall, in the opinion of such
Agent, be insufficient or become impaired, such Agent may call for additional
indemnity and cease, or not commence, to do the acts indemnified against until
such additional indemnity is furnished; provided, in no event shall this
sentence require any Lender to indemnify any Agent against any liability,
obligation, loss, damage, penalty, action, judgment, suit, cost, expense or
disbursement in excess of such Lender’s Pro Rata Share thereof; and provided,
further, this sentence shall not be deemed to require any Lender to
indemnify any Agent against any liability, obligation, loss, damage, penalty,
action, judgment, suit, cost, expense or disbursement described in the proviso
in the immediately preceding sentence.

 

9.7. Successor Administrative Agent. Administrative Agent may resign at any time
by giving thirty days’ prior written notice thereof to Lenders and Company
(except in the case of GSCP, which may resign by giving five days’ prior
written notice thereof, provided GSCP has identified a successor Administrative
Agent), and Administrative Agent may be removed at any time with or without
cause by an instrument or concurrent instruments in writing delivered to
Company and Administrative Agent and signed by Requisite Lenders. Upon any such
notice of resignation or any such removal, Requisite Lenders shall have the
right to appoint a successor Administrative Agent, upon five Business Days’
notice to Company, and Company shall have the right to consent to such
successor Administrative Agent, such consent not to be unreasonably withheld or
delayed. Upon the acceptance of any appointment as Administrative Agent
hereunder by a successor Administrative Agent, that successor Administrative
Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring or removed Administrative Agent and the
retiring or removed Administrative Agent shall promptly (i) transfer to such
successor Administrative Agent all sums, Securities and other items of Collateral
held under the Collateral Documents, together with all records and other
documents necessary

 

75

 

or
appropriate in connection with the performance of the duties of the successor
Administrative Agent under the Credit Documents, and (ii) execute and deliver
to such successor Administrative Agent such amendments to financing statements,
and take such other actions, as may be necessary or appropriate in connection
with the assignment to such successor Administrative Agent of the security
interests created under the Collateral Documents, whereupon such retiring or
removed Administrative Agent shall be discharged from its duties and
obligations hereunder. After any retiring or removed Administrative Agent’s
resignation or removal hereunder as Administrative Agent, the provisions of
this Section 9 shall inure to its benefit as to any actions taken or omitted to
be taken by it while it was Administrative Agent hereunder.

 

9.8. Collateral Documents and
Guaranty.

 

(a) Agents under Collateral Documents and
Guaranty. Each Lender hereby further authorizes Administrative Agent or
Collateral Agent, as applicable, on behalf of and for the benefit of Lenders,
to be the agent for and representative of Lenders with respect to the Guaranty,
the Collateral and the Collateral Documents. Each Lender, by its signature
hereto or by its signature to an Assignment Agreement, consents and agrees to
all terms of the Collateral Documents as such agreements may be in effect or
may be amended from time to time in accordance with their terms (including,
without limitation, the Working Capital Facility Intercreditor Agreement and
the Term Loan Intercreditor Agreement and the provisions therein providing for
the exercise of remedies, release of the Collateral and any restrictions on the
exercise of rights or remedies during an Insolvency or Liquidation Proceeding,
as defined in the Term Loan Intercreditor Agreement) and agrees to be bound by
such terms as they apply to the Collateral Agent acting on behalf of such
Lender. Subject to Section 10.5, without further written consent or
authorization from Lenders, Administrative Agent or Collateral Agent, as
applicable may execute any documents or instruments necessary to (i) release
any Lien encumbering any item of Collateral that is the subject of a sale or
other disposition of assets permitted hereby or to which Requisite Lenders (or
such other Lenders as may be required to give such consent under Section 10.5)
have otherwise consented or (ii) release any Guarantor Subsidiary from the
Guaranty pursuant to Section 7.12 or with respect to which Requisite Lenders
(or such other Lenders as may be required to give such consent under Section
10.5) have otherwise consented.

 

(b) Right to Realize on Collateral and Enforce
Guaranty. Anything contained in any of the Credit Documents to the contrary
notwithstanding, Company, Administrative Agent, Collateral Agent and each
Lender hereby agree that (i) no Lender shall have any right individually to
realize upon any of the Collateral or to enforce the Guaranty, it being
understood and agreed that all powers, rights and remedies hereunder may be
exercised solely by Administrative Agent, on behalf of Lenders in accordance
with the terms hereof and all powers, rights and remedies under the Collateral
Documents may be exercised solely by Collateral Agent in accordance with the
terms hereof, and (ii) in the event of a foreclosure by Collateral Agent on any
of the Collateral pursuant to a public or private sale, Collateral Agent or any
Lender may be the purchaser of any or all of such Collateral at any such sale
and Collateral Agent, as agent for and representative of Secured Parties (but
not any Lender or Lenders in its or their respective individual capacities
unless Requisite Lenders shall otherwise agree in writing) shall be entitled,
for the purpose of bidding and making settlement or payment of the purchase
price for all or any portion of the Collateral sold at any such public sale, to
use and apply any of the Obligations as a credit on account of the purchase
price for any collateral payable by Collateral Agent at such sale.

 

(c) Rights in Collateral and Intercreditor
Agreements. The Company, Administrative Agent, Collateral Agent and each
Lender hereto acknowledge and agree that their respective rights in the
Collateral as established under each Credit Document are subject to the Term
Loan Intercreditor Agreement and the Working Capital Intercreditor Agreement.

 

76

 

SECTION 10. MISCELLANEOUS

 

10.1. Notices. Unless otherwise specifically provided
herein, any notice or other communication herein required or permitted to be
given to a Credit Party, Collateral Agent or Administrative Agent, shall be
sent to such Person’s address as set forth on Appendix B or in the other
relevant Credit Document, and in the case of any Lender, the address as
indicated on Appendix B or otherwise indicated to Administrative Agent in
writing. Each notice hereunder shall be in writing and may be personally
served, telexed (if the recipient has telex facilities) sent by facsimile,
United States mail or courier service or furnished by electronic communication
(including e-mail and Internet or intranet websites) and shall be deemed to
have been given when delivered in person or by courier service and signed for
against receipt thereof, upon receipt of facsimile or telex, or three Business
Days after depositing it in the United States mail with postage prepaid and
properly addressed; provided, no notice to any Agent shall be effective
until received by such Agent. The preceding sentence notwithstanding, the
Administrative Agent may, in its discretion, agree to accept notices and other
communications from Lenders to it hereunder by electronic communications
pursuant to procedures approved by the Administrative Agent and approval of
such procedures may be limited to particular notices or communications.

 

10.2. Expenses. Company agrees to pay promptly (a) all the
actual and reasonable costs and expenses of preparation of the Credit Documents
and any consents, amendments, waivers or other modifications thereto (subject
to clause (c) below); (b) all the costs of furnishing all opinions by counsel
for Company and the other Credit Parties; (c) the reasonable fees, expenses and
disbursements of a single law firm acting as counsel to the Agents, in
connection with the negotiation, preparation, execution and administration of
the Credit Documents and any consents, amendments, waivers or other
modifications thereto and any other documents or matters requested by Company;
(d) all the actual reasonable costs and expenses of creating and perfecting
Liens in favor of Collateral Agent, for the benefit of Lenders pursuant hereto,
including filing and recording fees, expenses and taxes, stamp or documentary
taxes, search fees, title insurance premiums and reasonable fees, expenses and
disbursements of a single law firm acting as counsel to the Agents, and of
counsel to Company and the other Credit Parties providing any opinions that any
Agent or Requisite Lenders may request in respect of the Collateral or the
Liens created pursuant to the Collateral Documents; (e) all the actual
reasonable costs and reasonable expenses (including the reasonable fees,
expenses and disbursements of any appraisers, accountants, consultants,
advisors and agents employed or retained by Collateral Agent and its counsel)
in connection with the custody or preservation of any of the Collateral
following the occurrence of an Event of Default; (f) all other actual and
reasonable costs and expenses incurred by each Agent and each Lender in
connection with the negotiation, preparation and execution of any consents,
amendments, waivers or other modifications to any Credit Document; and (g)
after the occurrence of an Event of Default, all costs and expenses, including
reasonable attorneys’ fees and costs of settlement, incurred by each Agent and
each Lender in enforcing any Obligations of or in collecting any payments due
from any Credit Party hereunder or under the other Credit Documents by reason
of such Event of Default (including in connection with the sale of, collection
from, or other realization upon any of the Collateral or the enforcement of the
Guaranty) or in connection with any refinancing or restructuring of the credit
arrangements provided hereunder in the nature of a “work-out” or
pursuant to any insolvency or bankruptcy cases or proceedings.

 

10.3. Indemnity.

 

(a) In addition to the payment of expenses pursuant
to Section 10.2, whether or not the transactions contemplated hereby shall be
consummated, each Credit Party agrees to defend (subject to Indemnitees’
selection of counsel), indemnify, pay and hold harmless, each Agent and each
Lender and the officers, partners, directors, trustees, employees, agents and
Affiliates of each Agent and each Lender (each, an “Indemnitee”), from and against any and all Indemnified
Liabilities; provided, no Credit Party

 

77

 

shall
have any obligation to any Indemnitee hereunder with respect to any Indemnified
Liabilities to the extent such Indemnified Liabilities arise from the breach of
contract, gross negligence or willful misconduct of that Indemnitee. To the
extent that the undertakings to defend, indemnify, pay and hold harmless set
forth in this Section 10.3 may be unenforceable in whole or in part because
they are violative of any law or public policy, the applicable Credit Party
shall, subject to the proviso in the preceding sentence, contribute the maximum
portion that it is permitted to pay and satisfy under applicable law to the
payment and satisfaction of all Indemnified Liabilities incurred by Indemnitees
or any of them.

 

(b) To the extent permitted by applicable law, no
Credit Party shall assert, and each Credit Party hereby waives, any claim
against Lenders, Agents and their respective Affiliates, directors, employees,
attorneys or agents, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages)
(whether or not the claim therefor is based on contract, tort or duty imposed
by any applicable legal requirement) arising out of, in connection with,
arising out of, as a result of, or in any way related to, this Agreement or any
Credit Document or any agreement or instrument contemplated hereby or thereby
or referred to herein or therein, the transactions contemplated hereby or
thereby, any Loan or the use of the proceeds thereof or any act or omission or
event occurring in connection therewith, and Company hereby waives, releases
and agrees not to sue upon any such claim or any such damages, whether or not
accrued and whether or not known or suspected to exist in its favor.

 

10.4. Set-Off. In addition to any rights now or hereafter
granted under applicable law and not by way of limitation of any such rights,
upon the occurrence and during the continuance of any Event of Default each
Lender is hereby authorized by each Credit Party at any time or from time to
time subject to the consent of Administrative Agent (such consent not to be
unreasonably withheld or delayed), without prior notice to any Credit Party or
to any other Person (other than Administrative Agent), any such prior notice
being hereby expressly waived, to set-off and to appropriate and to apply any
and all deposits (general or special, including Indebtedness evidenced by
certificates of deposit, whether matured or unmatured, but not including trust
accounts) and any other Indebtedness at any time held or owing by such Lender
to or for the credit or the account of any Credit Party against and on account
of the obligations and liabilities of any Credit Party to such Lender
hereunder, irrespective of whether or not (a) such Lender shall have made any
demand hereunder or (b) the principal of or the interest on the Loans or any
other amounts due hereunder shall have become due and payable pursuant to
Section 2 and although such obligations and liabilities, or any of them, may be
contingent or unmatured.

 

10.5. Amendments and Waivers.

 

(a) Requisite Lenders’ Consent. Subject to
Section 10.5(b) and 10.5(c), no amendment, modification, termination or waiver
of any provision of the Credit Documents, or consent to any departure by any
Credit Party therefrom, shall in any event be effective without the written
concurrence of the Requisite Lenders.

 

(b) Affected Lenders’ Consent. Without the
written consent of each Lender affected thereby (other than a Defaulting
Lender), no amendment, modification, termination, or consent shall be effective
if the effect thereof would:

 

(i)
extend the scheduled final maturity of any Loan or Note;

 

(ii)
waive, reduce or postpone any scheduled repayment (but not prepayment), or
alter the required application of any prepayment pursuant to Section 2.15, as
applicable;

 

78

 

(iii)
reduce the principal of or the rate of interest on any Loan (other than any
waiver of any increase in the interest rate applicable to any Loan pursuant to
Section 2.10) or any fee or premium payable hereunder;

 

(iv)
extend the time for payment of any such interest or fees;

 

(v)
amend, modify, terminate or waive any provision of this Section 10.5(b) or
Section 10.5(c);

 

(vi)
change the percentage of the outstanding principal amount of the Loans that is
required for the Lenders or any of them to take any action hereunder or amend
the definition of “Requisite Lenders”
or “Pro Rata Share”, or modify the
amount of the Commitment of any Lender;

 

(vii)
release any portion of the Collateral or any of the Guarantor Subsidiaries from
the Guaranty, or subordinate any of the Collateral Agent’s Liens, in each case,
except as expressly provided in the Credit Documents; or

 

(viii)
consent to the assignment or transfer by any Credit Party of any of its rights
and obligations under any Credit Document, except as provided in Section 10.6.

 

(c) Other Consents. No amendment,
modification, termination or waiver of any provision of the Credit Documents,
or consent to any departure by any Credit Party therefrom, shall amend, modify,
terminate or waive any provision of Section 9 as the same applies to any Agent,
or any other provision hereof as the same applies to the rights or obligations
of any Agent, in each case without the consent of such Agent.

 

(d) Execution of Amendments, etc.
Administrative Agent may, but shall have no obligation to, with the concurrence
of any Lender, execute amendments, modifications, waivers or consents on behalf
of such Lender. Any waiver or consent shall be effective only in the specific
instance and for the specific purpose for which it was given. No notice to or
demand on any Credit Party in any case shall entitle any Credit Party to any
other or further notice or demand in similar or other circumstances. Any
amendment, modification, termination, waiver or consent effected in accordance
with this Section 10.5 shall be binding upon each Lender at the time
outstanding, each future Lender and, if signed by a Credit Party, on such
Credit Party.

 

10.6. Successors and Assigns;
Participations.

 

(a) Generally. This Agreement shall be
binding upon the parties hereto and their respective successors and assigns and
shall inure to the benefit of the parties hereto and the successors and assigns
of Lenders. No Credit Party’s rights or obligations hereunder nor any interest
therein may be assigned or delegated by any Credit Party without the prior
written consent of all Lenders. 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 and, to the
extent expressly contemplated hereby, Affiliates of each of the Agents and
Lenders) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

 

(b) Register. Company, Administrative Agent
and Lenders shall deem and treat the Persons listed as Lenders in the Register
as the holders and owners of the corresponding Commitments and Loans listed
therein for all purposes hereof, and, except as provided in Section 10.6(i), no
assignment

 

79

 

or
transfer of any such Commitment or Loan shall be effective, in each case,
unless and until an Assignment Agreement effecting the assignment or transfer
thereof shall have been delivered to and accepted by Administrative Agent and
recorded in the Register as provided in Section 10.6(e). Prior to such
recordation, all amounts owed with respect to the applicable Commitment or Loan
shall be owed to the Lender listed in the Register as the owner thereof, and
any request, authority or consent of any Person who, at the time of making such
request or giving such authority or consent, is listed in the Register as a
Lender shall be conclusive and binding on any subsequent holder, assignee or
transferee of the corresponding Commitments or Loans.

 

(c) Right to Assign. Each Lender shall have
the right at any time to sell, assign or transfer all or a portion of its
rights and obligations under this Agreement, including all or a portion of its
Loans owing to it or other Obligation (provided, however, that
each such assignment shall be of a uniform, and not varying, percentage of all
rights and obligations under and in respect of any Loan) (i) to any Person
meeting the criteria of the definition of “Eligible Assignee” upon the giving
of notice to Company and Administrative Agent; and (ii) to any other Person
consented to by Company following notice to Administrative Agent (such Company
consent not to be unreasonably withheld or delayed, or required at any time an
Event of Default shall have occurred and then be continuing); provided, further,
each such assignment (other than to any Person meeting the criteria of clause
(i) of the definition of “Eligible
Assignee”) shall be in an
aggregate amount of not less than $500,000 (or such lesser amount as may be
agreed to by Company or as shall constitute the aggregate amount of the Loans
of the assigning Lender) with respect to the assignment of the Loans.

 

(d) Mechanics. Except as provided in Section
10.6(i), the assigning Lender and the assignee to each such assignment thereof
shall execute and deliver to the Administrative Agent an Assignment Agreement
(such Assignment Agreement to be (A) electronically executed and delivered to
the Administrative Agent via an electronic settlement system then acceptable to
the Administrative Agent, which shall initially be the settlement system of
ClearPar, LLC, or (B) manually executed and delivered, in either case without
any additional processing or recordation fees) and (ii) such forms, certificates
or other evidence, if any, with respect to United States federal income tax
withholding matters as the assignee, if it shall not be a Lender immediately
prior to the assignment, under such Assignment Agreement may be required to
deliver to Administrative Agent pursuant to Section 2.20(c).

 

(e) Notice of Assignment. Upon its receipt of
a duly executed and completed Assignment Agreement, together with the
processing and recordation fee referred to in Section 10.6(d) if applicable
(and any forms, certificates or other evidence required by this Agreement in
connection therewith), Administrative Agent shall record the information
contained in such Assignment Agreement in the Register and shall maintain a
copy of such Assignment Agreement.

 

(f) Representations and Warranties of Assignee.
Each Lender, upon execution and delivery hereof or upon executing and
delivering an Assignment Agreement, as the case may be, represents and warrants
as of the Closing Date or as of the applicable Effective Date (as defined in
the applicable Assignment Agreement) that (i) it is an Eligible Assignee; (ii)
it has experience and expertise in the making of or investing in commitments or
loans such as the applicable Commitments or Loans, as the case may be; and
(iii) it will make or invest in, as the case may be, its Commitments or Loans
for its own account in the ordinary course of its business and without a view
to distribution of such Commitments or Loans within the meaning of the
Securities Act or the Exchange Act or other federal securities laws (it being
understood that, subject to the provisions of this Section 10.6, the
disposition of such Commitments or Loans or any interests therein shall at all
times remain within its exclusive control).

 

80

 

Each
Lender represents and warrants that it is an “accredited investor” within the
meaning of Rule 501(a) under the Securities Act of 1933, as amended and
modified, and is making the Loans and acquiring the Notes for investment for its
own account and not with a view to distribution in violation of the Securities
Act of 1933 or any applicable state securities laws. Each Eligible Assignee,
participant or acquiror of a participation interest in any Loan shall also make
the foregoing representation in writing to the Company and Administrative Agent
concurrently with any such assignment, participation or acquisition.

 

(g) Effect of Assignment. Subject to the
terms and conditions of this Section 10.6, as of the “Effective Date”
specified in the applicable Assignment Agreement: (i) the assignee thereunder
shall have the rights and obligations of a “Lender” hereunder to the extent such rights and
obligations hereunder have been assigned to it pursuant to such Assignment
Agreement and shall thereafter be a party hereto and a “Lender”
for all purposes hereof; (ii) the assigning Lender thereunder shall, to the
extent that rights and obligations hereunder have been assigned thereby
pursuant to such Assignment Agreement, relinquish its rights (other than any
rights which survive the termination hereof under Section 10.8) and be released
from its obligations hereunder (and, in the case of an Assignment Agreement
covering all or the remaining portion of an assigning Lender’s rights and
obligations hereunder, such Lender shall cease to be a party hereto; provided,
anything contained in any of the Credit Documents to the contrary
notwithstanding, such assigning Lender shall continue to be entitled to the
benefit of all indemnities hereunder as specified herein with respect to
matters arising out of the prior involvement of such assigning Lender as a
Lender hereunder); and (iii) if any such assignment occurs after the issuance
of any Note hereunder, the assigning Lender shall, upon the effectiveness of such
assignment or as promptly thereafter as practicable, surrender its applicable
Notes to Administrative Agent for cancellation, and thereupon Company shall
issue and deliver new Notes, if so requested by the assignee and/or assigning
Lender, to such assignee and/or to such assigning Lender, with appropriate
insertions, to reflect the outstanding Loans of the assignee and/or the
assigning Lender. Except as provided in clause (i) below, any assignment or
transfer by a Lender of rights or obligations under this Agreement that does
not comply with clauses (c) through (g) 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 clause (h).

 

(h) Participations. Each Lender shall have
the right at any time to sell one or more participations to any Person (other
than Company, any of its Subsidiaries or any of its Affiliates) in all or any
part of its Loans or in any other Obligation. The holder of any such
participation, other than an Affiliate or Related Fund of the Lender granting
such participation, shall not be entitled to require such Lender to take or
omit to take any action hereunder except with respect to any amendment,
modification or waiver that would (i) extend the final scheduled maturity of
any Loan or Note in which such participant is participating, or reduce the rate
or extend the time of payment of interest or fees thereon (except in connection
with a waiver of applicability of any post-default increase in interest rates)
or reduce the principal amount thereof, or increase the amount of the
participant’s participation over the amount thereof then in effect (it being
understood that a waiver of any Default or Event of Default or of a mandatory
reduction in the Commitment shall not constitute a change in the terms of such
participation, and that an increase in any Commitment or Loan shall be
permitted without the consent of any participant if the participant’s
participation is not increased as a result thereof), (ii) consent to the
assignment or transfer by any Credit Party of any of its rights and obligations
under this Agreement or (iii) release all or substantially all of the
Collateral under the Collateral Documents (except as expressly provided in the
Credit Documents) supporting the Loans hereunder in which such participant is
participating. Company agrees that each participant shall be entitled to the
benefits of Sections 2.18(c), 2.19 and 2.20 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to paragraph (c) of
this Section; provided, (i) a participant shall not be entitled to
receive any greater payment under Section 2.19 or 2.20 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 Company’s

 

81

 

prior
written consent and (ii) a participant that would be a Non-US Lender if it were
a Lender shall not be entitled to the benefits of Section 2.20 unless Company
is notified of the participation sold to such participant and such participant
agrees, for the benefit of Company, to comply with Section 2.20 as though it
were a Lender. To the extent permitted by law, each participant also shall be
entitled to the benefits of Section 10.4 as though it were a Lender, provided,
such Participant agrees to be subject to Section 2.17 as though it were a
Lender.

 

(i) Certain Other Assignments. In addition to
any other assignment permitted pursuant to this Section 10.6, (i) any Lender
may assign and/or pledge all or any portion of its Loans, the other Obligations
owed by or to such Lender, and its Notes, if any, to secure obligations of such
Lender to any other Person (including, without limitation, any Federal Reserve
Bank or any Federal Home Loan Bank) as collateral security (including, without
limitation, pursuant to Regulation A of the Board of Governors of the Federal
Reserve System and any operating circular issued by such Federal Reserve Bank);
provided, no Lender, as between Company and such Lender, shall be
relieved of any of its obligations hereunder as a result of any such assignment
and pledge, and provided, further, in no event shall the
applicable Federal Reserve Bank or Federal Home Loan Bank, or other pledgee or
trustee be considered to be a “Lender” or be entitled to require the assigning
Lender to take or omit to take any action hereunder and (ii) any Lender may
assign any or all of its rights and obligations under the Credit Documents to
an Affiliate of such Lender or a Related Fund of such Lender without delivering
an Assignment Agreement to the Company or the Administrative Agent or the
payment of any processing fee or the giving of the notice called for by Section
10.6(c)(i); provided, that (x) the Credit Parties and the Agents
shall continue to deal solely and directly with such assigning Lender in
connection with the interest so assigned unless such assignee is an Eligible
Assignee and until such Lender and such Eligible Assignee shall have executed
and delivered an Assignment Agreement to the Company and the Administrative
Agent for recordation, (y) the failure of such assigning Lender to deliver an
Assignment Agreement to the Company, the Administrative Agent or any other
Person shall not affect the legality, validity or binding effect of such
assignment and (z) the assigning Lender shall maintain a register on behalf of
the Company comparable to the Register which may be accessed upon reasonable
notice and at such reasonable times during normal business hours and as often
as may reasonably be requested. For the avoidance of doubt, any assignment
contemplated by subclause (ii) above that is effected by delivery of an
Assignment Agreement shall be subject to all other requirements set forth in
this Section 10.6 for such assignment to be effective. Nothing in this
Agreement or any other Credit Document shall prevent or prohibit a Lender from
assigning or transferring all of a portion of its rights and delegating all or
a portion of its obligations under this Agreement and the other Credit
Documents to any lender to or financing source of such Lender; provided,
however, that no lender to or financing source of such Lender shall be
considered a Lender under this Agreement or any other Credit Document, and such
Lender shall continue to be liable and obligated in all respects as a Lender
under this Agreement and the other Credit Documents (and the Agent, the Lenders
and the Borrowers shall only be required to communicate with, and otherwise
deal with, such Lender as a Lender hereunder and under the other Credit
Documents), unless such assignee or transferee is an Eligible Assignee and
until such Eligible Assignee executes an Assignment Agreement and thereby
becomes a Lender hereunder and under the other Credit Documents in accordance
with the provisions of this Section 10.6.

 

10.7. Independence of Covenants. All covenants hereunder shall be given
independent effect so that if a particular action or condition is not permitted
by any of such covenants, the fact that it would be permitted by an exception
to, or would otherwise be within the limitations of, another covenant shall not
avoid the occurrence of a Default or an Event of Default if such action is taken
or condition exists.

 

10.8. Survival of Representations,
Warranties and Agreements. All representations, warranties and agreements made herein shall
survive the execution and delivery hereof and the making of

 

82

 

any
Credit Extension. Notwithstanding anything herein or implied by law to the
contrary, the agreements of each Credit Party set forth in Sections 2.18(c),
2.19, 2.20, 7.11, 10.2, 10.3 and 10.4 and the agreements of Lenders set forth
in Sections 2.17, 9.3(b) and 9.6 shall survive the payment of the Loans and the
termination hereof.

 

10.9. No Waiver; Remedies
Cumulative. No
failure or delay on the part of any Agent or any Lender in the exercise of any
power, right or privilege hereunder or under any other Credit Document shall
impair such power, right or privilege or be construed to be a waiver of any
default or acquiescence therein, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further exercise thereof
or of any other power, right or privilege. The rights, powers and remedies
given to each Agent and each Lender hereby are cumulative and shall be in
addition to and independent of all rights, powers and remedies existing by
virtue of any statute or rule of law or in any of the other Credit Documents.
Any forbearance or failure to exercise, and any delay in exercising, any right,
power or remedy hereunder shall not impair any such right, power or remedy or
be construed to be a waiver thereof, nor shall it preclude the further exercise
of any such right, power or remedy.

 

10.10. Marshalling; Payments Set
Aside. Neither any
Agent nor any Lender shall be under any obligation to marshal any assets in
favor of any Credit Party or any other Person or against or in payment of any
or all of the Obligations. To the extent that any Credit Party makes a payment
or payments to Administrative Agent or Lenders (or to Administrative Agent, on
behalf of Lenders), or Administrative Agent or Lenders enforce any security interests
or exercise their rights of setoff, and such payment or payments or the
proceeds of such enforcement or setoff or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside and/or
required to be repaid to a trustee, receiver or any other party under any
bankruptcy law, any other state or federal law, common law or any equitable
cause, then, to the extent of such recovery, the obligation or part thereof
originally intended to be satisfied, and all Liens, rights and remedies
therefor or related thereto, shall be revived and continued in full force and
effect as if such payment or payments had not been made or such enforcement or
setoff had not occurred.

 

10.11. Severability. In case any provision in or obligation
hereunder or any Note shall be invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby.

 

10.12. Obligations Several;
Independent Nature of Lenders’ Rights. The obligations of Lenders hereunder are several and no Lender shall
be responsible for the obligations or Commitment of any other Lender hereunder.
Nothing contained herein or in any other Credit Document, and no action taken
by Lenders pursuant hereto or thereto, shall be deemed to constitute Lenders as
a partnership, an association, a joint venture or any other kind of entity. The
amounts payable at any time hereunder to each Lender shall be a separate and
independent debt, and each Lender shall be entitled to protect and enforce its
rights arising out hereof and it shall not be necessary for any other Lender to
be joined as an additional party in any proceeding for such purpose.

 

10.13. Headings. Section headings herein are included herein
for convenience of reference only and shall not constitute a part hereof for
any other purpose or be given any substantive effect.

 

10.14. APPLICABLE LAW. THIS AGREEMENT
AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY,
AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK.

 

83

 

10.15. CONSENT TO JURISDICTION. ALL
JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY PARTY ARISING OUT OF OR RELATING
HERETO OR ANY OTHER CREDIT DOCUMENT, OR ANY OF THE OBLIGATIONS, MAY BE BROUGHT
IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY
AND CITY OF NEW YORK. BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH PARTY,
FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (a) ACCEPTS
GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH
COURTS; (b) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; (c) AGREES THAT SERVICE
OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY
REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE PARTY
AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 10.1; (d) AGREES THAT
SERVICE AS PROVIDED IN CLAUSE (c) ABOVE IS SUFFICIENT TO CONFER PERSONAL
JURISDICTION OVER SUCH PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND
OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (e)
AGREES EACH OTHER PARTY RETAINS THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY PARTY IN THE COURTS OF ANY
OTHER JURISDICTION.

 

10.16. WAIVER OF JURY TRIAL. EACH
OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER
ANY OF THE OTHER CREDIT DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE
SUBJECT MATTER OF THIS LOAN TRANSACTION OR THE LENDER/COMPANY RELATIONSHIP THAT
IS BEING ESTABLISHED. THE SCOPE OF THIS WAIVER IS INTENDED TO BE
ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND
THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT
CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND
STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL
INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED
ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE TO
RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER
WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL
AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING
CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT
MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN
WAIVER SPECIFICALLY REFERRING TO THIS SECTION 10.16 AND EXECUTED BY EACH OF THE
PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO OR ANY OF THE OTHER CREDIT
DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS MADE
HEREUNDER. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL BY THE COURT.

 

10.17. Confidentiality. Each Lender shall hold all non-public
information regarding Company and its Subsidiaries and their businesses
identified as such by Company and obtained by such Lender pursuant to the requirements
hereof in accordance with such Lender’s customary procedures for handling
confidential information of such nature, it being understood and agreed by
Company that, in any event, a

 

84

 

Lender
may make (i) disclosures of such information to Affiliates and Related Funds of
such Lender and to their agents and advisors (and to other persons authorized
by a Lender or Agent to organize, present or disseminate such information in
connection with disclosures otherwise made in accordance with this Section
10.17), (ii) subject to the prior receipt of appropriate written
confidentiality undertakings, disclosures of such information reasonably
required by any bona fide or potential assignee, transferee or participant in
connection with the contemplated assignment, transfer or participation by such
Lender of any Loans or any participations therein or by any direct or indirect
contractual counterparties (or the professional advisors thereto) in Hedge Agreements
(provided, such counterparties and advisors are advised of and agree to
be bound by the provisions of this Section 10.17), (iii) disclosure to any
rating agency when required by it, provided, that, prior to any
disclosure, such rating agency shall undertake in writing to preserve the
confidentiality of any confidential information relating to the Credit Parties
received by it from any of the Agents or any Lender, and (iv) disclosures
required or requested by any Governmental Authority or representative thereof
or by the NAIC or pursuant to legal or judicial process; provided,
unless specifically prohibited by applicable law or court order, each Lender
shall make reasonable efforts to notify Company of any request by any
Governmental Authority or representative thereof (other than any such request
in connection with any examination of the financial condition or other routine
examination of such Lender by such Governmental Authority) for disclosure of
any such non-public information prior to disclosure of such information.

 

10.18. Usury Savings Clause. Notwithstanding any other provision herein,
the aggregate interest rate charged with respect to any of the Obligations,
including all charges or fees in connection therewith deemed in the nature of
interest under applicable law shall not exceed the Highest Lawful Rate. If the
rate of interest (determined without regard to the preceding sentence) under
this Agreement at any time exceeds the Highest Lawful Rate, the outstanding
amount of the Loans made hereunder shall bear interest at the Highest Lawful
Rate until the total amount of interest due hereunder equals the amount of
interest which would have been due hereunder if the stated rates of interest
set forth in this Agreement had at all times been in effect. In addition, if
when the Loans made hereunder are repaid in full the total interest due
hereunder (taking into account the increase provided for above) is less than
the total amount of interest which would have been due hereunder if the stated
rates of interest set forth in this Agreement had at all times been in effect,
then to the extent permitted by law, Company shall pay to Administrative Agent
an amount equal to the difference between the amount of interest paid and the
amount of interest which would have been paid if the Highest Lawful Rate had at
all times been in effect. Notwithstanding the foregoing, it is the intention of
Lenders and Company to conform strictly to any applicable usury laws.
Accordingly, if any Lender contracts for, charges, or receives any
consideration which constitutes interest in excess of the Highest Lawful Rate,
then any such excess shall be cancelled automatically and, if previously paid,
shall at such Lender’s option be applied to the outstanding amount of the Loans
made hereunder or be refunded to Company.

 

10.19. Counterparts. This Agreement may be executed in any
number of counterparts, each of which when so executed and delivered shall be
deemed an original, but all such counterparts together shall constitute but one
and the same instrument.

 

10.20. Effectiveness. This Agreement shall become effective upon
the execution of a counterpart hereof by each of the parties hereto and receipt
by Company and Administrative Agent of written or telephonic notification of
such execution and authorization of delivery thereof.

 

[Remainder of page
intentionally left blank]

 

85

 

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

 

	
   

  	
   

  	
  RELIANT PHARMACEUTICALS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RP SUB NO. 1, INC.,

  
	
   

  	
   

  	
  as
  a Guarantor Subsidiary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GOLDMAN SACHS CREDIT PARTNERS

  L.P.,

  
	
   

  	
   

  	
  as
  Administrative Agent and Collateral Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signatory

  

 

 

86

 

AGREED
TO AND ACKNOWLEDGED:

 

	
   

  	
   

  	
  BAY CITY CAPITAL FUND II, L.P., as

  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  BAY
  CITY CAPITAL MANAGEMENT II,

  LLC, its manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  
						

 

 

87

 

	
   

  	
   

  	
  BAY CITY CAPITAL FUND III, L.P., as

  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  BAY
  CITY CAPITAL MANAGEMENT III,

  LLC, its manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  

 

 

88

 

	
   

  	
   

  
	
   

  	
  Stephen
  Bowen, as Lender

  

 

89

 

	
   

  	
   

  	
  CRAVES FAMILY, L.L.C., as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

90

 

	
   

  	
   

  	
  HANDELSMAN FAMILY INVESTMENT

  
	
   

  	
   

  	
  GROUP, LLC, as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

91

 

	
   

  	
   

  	
  THE HEATHER ROAD TRUST, as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

92

 

	
   

  	
   

  	
  INTERNATIONAL CAPITAL GROUP S.A,

  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

93

 

	
   

  	
   

  
	
   

  	
  John
  J. Mack, as Lender

  

 

94

 

	
   

  	
   

  
	
   

  	
  Ernest
  Mario, as Lender

  

 

95

 

	
   

  	
   

  	
  PHARMBAY INVESTORS, L.L.C., as

  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

96

 

	
   

  	
   

  	
  PROMERICA CAPITAL, LLC, as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

97

 

	
   

  	
   

  	
  JAMES C. SMITH AND NORMA I.

  
	
   

  	
   

  	
  SMITH, JTWROS, as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  James
  C. Smith:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Norma
  I. Smith

  

 

98

 

	
   

  	
   

  
	
   

  	
  Robert
  K. Steel, as Lender

  

 

 

99

 

	
   

  	
   

  	
  PG GIGI M TRUST, as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

100

 

	
   

  	
   

  	
  THE WEXNER CHILDREN’S TRUST II, as

  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Jeffrey
  Epstein, not individually but solely in

  his capacity as trustee of the Trust.

  

 

101

 

APPENDIX A

TO CREDIT
AGREEMENT

 

Commitments

 

	
  Lender

  	
   

  	
  Commitment

  	
   

  	
  Pro 

  Rata Share

  	
   

  
	
  Bay City Capital Fund II, L.P.

  	
   

  	
  $

  	
  6,025,371.03

  	
   

  	
  12.1418

  	
  %

  
	
  Bay City Capital Fund III, L.P.

  	
   

  	
  $

  	
  4,256,621.81

  	
   

  	
  8.5776

  	
  %

  
	
  Stephen Bowen

  	
   

  	
  $

  	
  25,000.00

  	
   

  	
  0.0504

  	
  %

  
	
  Craves Family, L.L.C.

  	
   

  	
  $

  	
  500,000.00

  	
   

  	
  1.0076

  	
  %

  
	
  Handelsman Family Investment Group, LLC

  	
   

  	
  $

  	
  300,000.00

  	
   

  	
  0.6045

  	
  %

  
	
  The Heather Road Trust

  	
   

  	
  $

  	
  300,000.00

  	
   

  	
  0.6045

  	
  %

  
	
  International Capital Group S.A.

  	
   

  	
  $

  	
  3,500,000.00

  	
   

  	
  7.0529

  	
  %

  
	
  John J. Mack

  	
   

  	
  $

  	
  2,000,000.00

  	
   

  	
  4.0302

  	
  %

  
	
  Ernest Mario

  	
   

  	
  $

  	
  2,000,000.00

  	
   

  	
  4.0302

  	
  %

  
	
  PharmBay Investors, L.L.C.

  	
   

  	
  $

  	
  14,718,007.16

  	
   

  	
  29.6585

  	
  %

  
	
  Promerica Capital, LLC

  	
   

  	
  $

  	
  2,000,000.00

  	
   

  	
  4.0302

  	
  %

  
	
  James C. Smith and Norma I. Smith, JTWROS

  	
   

  	
  $

  	
  500,000.00

  	
   

  	
  1.0076

  	
  %

  
	
  Robert K. Steel

  	
   

  	
  $

  	
  2,000,000.00

  	
   

  	
  4.0302

  	
  %

  
	
  PG Gigi M Trust

  	
   

  	
  $

  	
  1,500,000.00

  	
   

  	
  3.0227

  	
  %

  
	
  The Wexner Children’s Trust II

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  	
  20.1511

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  49,625,000.00

  	
   

  	
  100

  	
  %

  

 

 

B-1

 

APPENDIX B

TO CREDIT
AGREEMENT

 

Notice
Addresses

 

	
  RELIANT
  PHARMACEUTICALS, INC.

  	 

	
   

  	 

	
  110 Allen Road

  	 

	
  Liberty Corner, NJ 07938

  	 

	
  Attention:

  	
   

  	
  Bob
  Ferguson, Chief Financial Officer

  
	
  Telephone:

  	
   

  	
  (908)
  580-1200

  
	
  Telecopier:

  	
   

  	
  (908)
  542-9406

  
	
  E-mail:

  	
   

  	
   

  
	
   

  	 

	
  in
  each case, with a copy to:

  	 

	
   

  	 

	
  Latham & Watkins LLP

  	 

	
  5800 Sears Tower

  	 

	
  Chicago, IL 60606

  	 

	
  Attention:

  	
   

  	
  Michael
  A. Pucker

  	 

	
  Telephone:

  	
   

  	
   

  	 

	
  Telecopier:

  	
   

  	
  312-993-9767

  	 

	
  E-mail:

  	
   

  	
   

  	 

	
   

  	 

	
  RP
  SUB NO. 1, INC.

  	 

	
   

  	 

	
  110 Allen Road

  	 

	
  Liberty Corner, NJ 07938

  	 

	
  Attention:

  	
   

  	
  Bob
  Ferguson, Chief Financial Officer

  	 

	
  Telephone:

  	
   

  	
  (908)
  580-1200

  	 

	
  Telecopier:

  	
   

  	
  (908)
  542-9406

  	 

	
  E-mail:

  	
   

  	
   

  	 

	
   

  	 

	
  in
  each case, with a copy to:

  	 

	
   

  	 

	
  Latham & Watkins LLP

  	 

	
  5800 Sears Tower

  	 

	
  Chicago, IL 60606

  	 

	
  Attention:

  	
   

  	
  Michael
  A. Pucker

  	 

	
  Telephone:

  	
   

  	
   

  	 

	
  Telecopier:

  	
   

  	
  312-993-9767

  	 

	
  E-mail:

  	
   

  	
   

  	 

							

 

B-2

 

	
  GOLDMAN SACHS CREDIT PARTNERS L.P.,

  
	
   

  
	
  Goldman Sachs Credit
  Partners L.P.

  
	
  85 Broad Street

  
	
  New York, New York 10004

  
	
  Attention:

  	
   

  	
  Elizabeth Fischer

  
	
  Telephone:

  	
   

  	
   

  
	
  Telecopier:

  	
   

  	
  212-357-9110

  
	
  E-mail:

  	
   

  	
   

  
	
   

  
	
  with a copy to:

  
	
   

  
	
  Goldman Sachs Credit
  Partners L.P.

  
	
  85 Broad Street

  
	
  New York, New York 10004

  
	
  Attention:

  	
   

  	
  Philip Green

  
	
  Telephone:

  	
   

  	
   

  
	
  Telecopier:

  	
   

  	
  (212) 357-4597

  
	
  E-mail:

  	
   

  	
   

  
	
   

  
	
  For purposes of funding notices:

  
	
   

  
	
  Goldman Sachs Credit
  Partners L.P.

  
	
  85 Broad Street

  
	
  New York, New York 10004

  
	
  Attention:

  	
   

  	
  Philip Green

  
	
  Telephone:

  	
   

  	
   

  
	
  Telecopier:

  	
   

  	
  (212) 357-4597

  
	
  E-mail:

  	
   

  	
   

  
	
   

  
	
  Lender Notices:

  
	
   

  
	
   

  	
  Bay City Capital Fund II, L.P.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Bay City Capital Fund III, L.P.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
					

 

B-3

 

	
  Stephen
  Bowen

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Craves
  Family, L.L.C.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Handelsman
  Family Investment Group, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Diversified
  Financial Management Corp.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  International
  Capital Group S.A.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  John
  J. Mack

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Ernest
  Mario

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  PharmBay
  Investors, L.L.C.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

B-4

 

	
  Promerica
  Capital, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  James
  C. Smith and Norma I. Smith, JTWROS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Robert
  K. Steel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  PG
  Gigi M Trust

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  The
  Wexner Children’s Trust II

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

B-5

 

THIRD-LIEN LOAN & GUARANTY AGREEMENT
EXHIBITS

 

	
  A

  	
  Form of Funding Notice

  
	
  B-1

  	
  Form of Note

  
	
  B-2

  	
  Form of PIK Note

  
	
  C

  	
  Form of Compliance Certificate

  
	
  D

  	
  Form of Opinion of Counsel

  
	
  E

  	
  Form of Assignment Agreement

  
	
  F

  	
  Form of Certificate Re Non-bank Status

  
	
  G-1

  	
  Form of Closing Date Certificate

  
	
  G-2

  	
  Form of Solvency Certificate

  
	
  H

  	
  Form of Counterpart Agreement

  
	
  J

  	
  Form of Joinder Agreement

  
	
  K

  	
  Form of Personal Property Collateral Access Agreement

  

 

 

EXHIBIT A TO

THIRD-LIEN LOAN AND GUARANTY AGREEMENT

 

FORM OF FUNDING NOTICE

 

Reference is
made to the Third-Lien Loan and Guaranty Agreement, dated as of April 13, 2005
(as it may be amended, supplemented or otherwise modified, the “Third-Lien Agreement”; the terms defined therein and not
otherwise defined herein being used herein as therein defined), by and among RELIANT PHARMACEUTICALS, INC. (“Company”), CERTAIN SUBSIDIARIES OF COMPANY, as Guarantor Subsidiaries,
the Lenders party hereto from time to time, GOLDMAN
SACHS CREDIT PARTNERS L.P., as Administrative Agent and Collateral
Agent.

 

Pursuant to
Section 2.1 of the Third-Lien Agreement, ‘Company desires that Lenders make the
following Loans to Company in accordance with the applicable terms and
conditions of the Third-Lien Agreement on [mm/dd/yy] (the “Credit
Date”):

 

	
  Fixed Rate Loan:

  	
  $[      ,      ,      ]

  

 

Company hereby
certifies that:

 

(i)            after making the Loans requested on
the Credit Date, the aggregate Loan Exposure shall not exceed the Commitments
then in effect;

 

(ii)           as of the Credit Date, the
representations and warranties contained in each of the Credit Documents are
true, correct and complete in all material respects on and as of such Credit
Date to the same extent as though made on and as of such date, except to the
extent such representations and warranties specifically relate to an earlier
date, in which case such representations and warranties are true, correct and
complete in all material respects on and as of such earlier date; and

 

(iii)          as of the Credit Date, no event has
occurred and is continuing or would result from the consummation of the
borrowing contemplated hereby that would constitute an Event of Default or a
Default.

 

 

	
  Date: [mm/dd/yy]

  	
  RELIANT PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  

 

A-1

 

EXHIBIT B-1 TO 

THIRD-LIEN LOAN AND GUARANTY AGREEMENT

 

FORM OF NOTE

 

$(1) [      ,      ,      ]

(2) [mm/dd/yy]

 

FOR VALUE RECEIVED, RELIANT PHARMACEUTICALS, INC., a Delaware
corporation (“Company”), promises to pay [NAME OF LENDER] (“Payee”)
or its registered assigns, on or before June 30, 2008,
the unpaid principal amount of its Loan under that certain Third-Lien Loan and
Guaranty Agreement, dated as of April 13, 2005
(as it may be amended, supplemented or otherwise modified, the “Third-Lien Agreement”; the terms defined therein and not
otherwise defined herein being used herein as therein defined), by and among RELIANT PHARMACEUTICALS, INC., CERTAIN SUBSIDIARIES OF COMPANY,
as Guarantor Subsidiaries, the Lenders party hereto from time to time, GOLDMAN SACHS CREDIT PARTNERS L.P., as Administrative Agent
and Collateral Agent.

 

This Note is
one of the “Notes” in the aggregate principal amount of forty-nine million and
six hundred and twenty-five thousand dollars ($49,625,000)
and is issued pursuant to and entitled to the benefits of the Third-Lien
Agreement, to which reference is hereby made for a more complete statement of
the terms and conditions under which the Loan evidenced hereby was made and is
to be repaid.

 

All payments
of principal in respect of this Note shall be made in lawful money of the
United States of America in same day funds at the Principal Office or at such
other place as shall be designated in writing for such purpose in accordance
with the terms of the Third-Lien Agreement. Unless and until an Assignment
Agreement effecting the assignment or transfer of the obligations evidenced
hereby shall have been accepted by Administrative Agent and recorded in the
Register, Company, each Agent and Lenders shall be entitled to deem and treat Payee
as the owner and holder of this Note and the obligations evidenced hereby. Payee
hereby agrees, by its acceptance hereof, that before disposing of this Note or
any part hereof it will make a notation hereon of all principal payments
previously made hereunder; provided, the failure to make a notation of any
payment made on this Note shall not limit or otherwise affect the obligations
of Company hereunder with respect to payments of principal on this Note. Company
shall also issue to Lenders PIK Notes in the form as provided in the Third-Lien
Agreement, in lieu of cash interest payments pursuant to Sections 2.7(d) and
2.8(b) of the Third-Lien Agreement.

 

This Note is
subject to (i) mandatory prepayment and (ii) voluntary prepayment at the option
of Company, each as provided in the Third-Lien Agreement.

 

THIS NOTE AND
THE RIGHTS AND OBLIGATIONS OF COMPANY AND PAYEE HEREUNDER SHALL BE GOVERNED BY,
AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK.

 

(1)           Amount of Lender’s
Loan

(2)           Date of Issuance

 

B-1-1

 

Upon the
occurrence of an Event of Default, the unpaid balance of the principal amount
of this Note may become, or may be declared to be, due and payable in the manner,
upon the conditions and with the effect provided in the Third-Lien Agreement.

 

The terms of
this Note are subject to amendment only in the manner provided in the
Third-Lien Agreement.

 

No reference
herein to the Third-Lien Agreement and no provision of this Note or the
Third-Lien Agreement shall alter or impair the obligations of Company, which
are absolute and unconditional, to pay the principal of this Note at the place,
at the respective times, and in the currency herein prescribed.

 

Company
promises to pay all costs and expenses, including reasonable attorneys’ fees,
all as provided in the Third-Lien Agreement, incurred in the collection and
enforcement of this Note. Company and any endorsers of this Note hereby consent
to renewals and extensions of time at or after the maturity hereof, without
notice, and hereby waive diligence, presentment, protest, demand, and, except
as required by Section 8.1 of the Third-Lien Agreement upon the occurrence of
an Event of Default, notice of every kind.

 

[SIGNATURE FOLLOWS
ON NEXT PAGE]

 

B-1-2

IN WITNESS WHEREOF, Company has caused this
Note to be duly executed and delivered by its officer thereunto duly authorized
as of the date and at the place first written above.

 

 

	
   

  	
  RELIANT PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  

 

B-1-3

 

	
  Date

  	
   

  	
  Amount of Principal

  Paid This Date

  	
   

  	
  Outstanding Principal

  Balance This Date

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

B-1-4

 

EXHIBIT B-2 TO 

THIRD-LIEN LOAN AND GUARANTY AGREEMENT

 

FORM OF PIK NOTE

 

$(3) [      ,      ,      ]

(4) [mm/dd/yy]

 

For value
received, Reliant Pharmaceuticals, Inc, a corporation organized and existing
under the laws of the State of Delaware (the “Company”), promises to pay [NAME OF LENDER] (“Payee”) or its registered assigns, on or
before September 30, 2008, the unpaid principal amount of PIK Interest accrued
on its Loan under that certain Third-Lien Loan and Guaranty Agreement, dated as
of April 13, 2005 (as it may be amended, supplemented or otherwise modified,
the “Third-Lien Agreement”; the terms
defined therein and not otherwise defined herein being used herein as therein
defined), by and among RELIANT PHARMACEUTICALS,
INC., CERTAIN SUBSIDIARIES OF COMPANY, as Guarantor Subsidiaries,
the Lenders party hereto from time to time, GOLDMAN
SACHS CREDIT PARTNERS L.P., as Administrative Agent and Collateral
Agent.

 

This PIK Note
is in the principal amount of [        ]
dollars [and                   cents]
$                  
and is issued pursuant to and entitled to the benefits of the Third-Lien
Agreement, to which reference is hereby made for a more complete statement of
the terms and conditions under which the Loan evidenced hereby was made and is
to be repaid.

 

Company
promises to pay interest on the unpaid principal amount outstanding hereunder
on the dates and at the rate provided for in Section 2.8 of the Third-Lien
Agreement. All such payments of PIK Interest required to be paid in cash in
respect of this PIK Note shall be made to the Lenders in lawful money of the
United States of America in same day funds at the Principal Office or at such
other place as shall be designated in writing for such purpose in accordance
with the terms of the Third-Lien Agreement. Unless and until an Assignment
Agreement effecting the assignment or transfer of the obligations evidenced
hereby shall have been accepted by Administrative Agent and recorded in the
Register, Company, each Agent and Lenders shall be entitled to deem and treat
Payee as the owner and holder of this PIK Note and the obligations evidenced
hereby. Payee hereby agrees, by its acceptance hereof, that before disposing of
this PIK Note or any part hereof it will make a notation hereon of all PIK
Interest payments previously made hereunder; provided, the failure to make a
notation of any payment made on this PIK Note shall not limit or otherwise
affect the obligations of Company hereunder with respect to payments of
principal on this PIK Note.

 

This PIK Note
is subject to (i) mandatory prepayment and (ii) voluntary prepayment at the
option of Company, each as provided in the Third-Lien Agreement.

 

(3)           Amount of Lender’s Loan

(4)           Date of Issuance

 

B-2-1

 

THIS NOTE AND
THE RIGHTS AND OBLIGATIONS OF COMPANY AND PAYEE HEREUNDER SHALL BE GOVERNED BY,
AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK.

 

Upon the
occurrence of an Event of Default, the unpaid balance of the principal amount
of this PIK Note may become, or may be declared to be, due and payable in the
manner, upon the conditions and with the effect provided in the Third-Lien
Agreement.

 

The terms of
this PIK Note are subject to amendment only in the manner provided in the
Third-Lien Agreement.

 

No reference
herein to the Third-Lien Agreement and no provision of this PIK Note or the
Third-Lien Agreement shall alter or impair the obligations of Company, which
are absolute and unconditional, to pay the PIK Interest on this PIK Note at the
place, at the respective times, and in the currency herein prescribed.

 

Company
promises to pay all costs and expenses, including reasonable attorneys’ fees,
all as provided in the Third-Lien Agreement, incurred in the collection and
enforcement of this PIK Note. Company and any endorsers of this PIK Note hereby
consent to renewals and extensions of time at or after the maturity hereof,
without notice, and hereby waive diligence, presentment, protest, demand, and,
except as required by Section 8.1 of the Third-Lien Agreement upon the
occurrence of an Event of Default, notice of every kind.

 

[SIGNATURE
FOLLOWS ON NEXT PAGE]

 

B-2-2

 

IN WITNESS WHEREOF, Company has caused this
Note to be duly executed and delivered by its officer thereunto duly authorized
as of the date and at the place first written above.

 

	
   

  	
  RELIANT PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  

 

B-2-3

 

	
  Date

  	
   

  	
  Amount of Interest

  Paid This Date

  	
   

  	
  Outstanding Principal

  Balance This Date

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

B-2-4

 

EXHIBIT C TO 

THIRD-LIEN LOAN AND GUARANTY AGREEMENT

 

FORM OF COMPLIANCE CERTIFICATE

 

THE UNDERSIGNED HEREBY CERTIFIES AS FOLLOWS:

 

1.             I am the Principal Financial
Officer of RELIANT PHARMACEUTICALS, INC. (“Company”).

 

2.             I have reviewed the terms of that
certain Third-Lien Loan and Guaranty Agreement, dated as of April 13, 2005 (as it may be amended, supplemented or
otherwise modified, the “Third-Lien Agreement”;
the terms defined therein and not otherwise defined herein being used herein as
therein defined), by and among Company, CERTAIN SUBSIDIARIES OF COMPANY,
as Guarantor Subsidiaries, the Lenders party hereto from time to time, GOLDMAN SACHS CREDIT PARTNERS L.P., as Administrative Agent
and Collateral Agent, and I have made, or have caused to be made under my
supervision, a review in reasonable detail of the transactions and condition of
Company and its Subsidiaries during the accounting period covered by the
attached financial statements.

 

3.             The examination described in
paragraph 2 above did not disclose, and I have no knowledge of, the existence
of any condition or event which constitutes an Event of Default or Default
during or at the end of the accounting period covered by the attached financial
statements or as of the date of this Certificate [, except as set forth in a
separate attachment, if any, to this Certificate, describing in detail, the
nature of the condition or event, the period during which it has existed and
the action which Company has taken, is taking, or proposes to take with respect
to each such condition or event].(5)

 

The foregoing
certifications and the financial statements delivered with this Certificate in
support hereof (in accordance with Section 5.1(b) or Section 5.1(c) of the Third-Lien
Agreement, as applicable) are made and delivered [mm/dd/yy]
pursuant to Section 5.1(d) of the Third-Lien Agreement.

 

	
   

  	
  RELIANT PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title: Principal Financial Officer

  

 

(5)           Text in brackets to be omitted if not applicable.

 

C-1

 

EXHIBIT D TO 

THIRD-LIEN LOAN AND GUARANTY AGREEMENT

 

 

FORM OF

OPINIONS OF COUNSEL

 

D-1

 

[            ]

 

 

Goldman Sachs Credit Partners LP., as Administrative

Agent and Collateral Agent

85 Broad Street

New York, New York 10004

 

	
  Re:

  	
  Third-Lien
  Loan and Guaranty Agreement dated as of the date hereof among Reliant
  Pharmaceuticals, Inc., certain subsidiaries of Reliant Pharmaceuticals, Inc.,
  Goldman Sachs Credit Partners L.P., as Administrative Agent and Collateral
  Agent and the other Lenders from time to time party thereto.

  

 

Ladies and
Gentlemen:

 

We have acted
as special counsel to Reliant Pharmaceuticals, Inc., a Delaware corporation
(the “Borrower”), and RP SUB No. 1, Inc.,
a Delaware corporation (the “Guarantor”
and, together with the Borrower, the “Credit Parties”),
in connection with that certain Third-Lien Loan and Guaranty Agreement dated as
of the date hereof (the “Third-Lien Loan Agreement”),
by and among the Credit Parties, Goldman Sachs Credit Partners L.P.,
individually, as Administrative Agent and Collateral Agent, the other lenders
from time to time party thereto (the “Lenders”),
and the other Loan Documents (as defined below).

 

This letter is
furnished pursuant to Section 3.1 of the Third-Lien Loan Agreement.
Capitalized terms used herein and not otherwise defined herein shall have the
meanings ascribed to them in the Third-Lien Loan Agreement and, if not defined
therein, in the Pledge Agreement.

 

As such
counsel, we have examined such matters of fact and questions of law as we have
considered appropriate for purposes of this letter, except where a specified
fact confirmation procedure is stated to have been performed (in which case we
have with your consent performed the stated procedure), and except where a
statement is qualified as to knowledge or awareness (in which case we have with
your consent made no or limited inquiry as specified below). We have examined,
among other things, the following:

 

(a)           The Third-Lien Loan Agreement;

 

(b)           Third-Lien Pledge and Security
Agreement dated as of April 13, 2005 executed by the Borrower in favor of the
Collateral Agent (the “Pledge Agreement”);

 

(c)           The agreements and instrument(s)
creating, evidencing or securing indebtedness of the Borrower for borrowed
money identified to us by an officer of the Borrower as material to the
Borrower and listed in Annex A (the “Material Agreements”);

 

(d)           The Certificate of Incorporation and
Bylaws of each of the Borrower and the Guarantor (the “Governing
Documents”); and

 

 

(e)           A photocopy of the UCC-1 financing
statements naming the Borrower as debtor and the Collateral Agent, as secured
party (the “Borrower Financing Statement”),
together with all schedules and exhibits to such financing statements, to be
filed in the Office of the Secretary of State of Delaware (the “Delaware Filing Office”), a copy of
which is attached hereto as Exhibit 1 and incorporated herein by this
reference.

 

The documents
described in subsections (a) – (b) above are referred to herein collectively as
the “Loan Documents.” As used in this
letter, the “NY UCC” shall mean the Uniform
Commercial Code as now in effect in the State of New York. As used in this
letter, “Applicable UCC” shall mean the
NY UCC and/or the Delaware UCC (as defined below).

 

With your
consent, we have relied upon the foregoing, including the representations and
warranties of the Credit Parties in the Loan Documents, and upon certificates
of officer(s) of the Credit Parties and of others with respect to certain
factual matters. We have not independently verified such factual matters. Whenever
a statement herein is qualified by “to the best of our knowledge” or a similar
phrase, it is intended to indicate that those attorneys in this firm who have
rendered legal services in connection with the negotiation of the Loan
Documents do not have current actual knowledge of the inaccuracy of such
statement. However, except as otherwise expressly indicated, we have not
undertaken any independent investigation to determine the accuracy of any such
statement.

 

We are opining
herein as to the effect on the subject transaction only of the federal laws of
the United States, the internal laws of the State of New York and (a) with
respect to our opinions set forth in paragraphs 1, 2 and 4(iii) of this letter,
the General Corporation Law of the State of Delaware (the “DGCL”),
and (b) with respect to our opinions set forth in paragraphs 7, 9(i) and 11(i),
the Delaware UCC (as defined below). Except as described in the previous
sentence, we express no opinion with respect to the applicability thereto, or
the effect thereon, of the laws of any other jurisdiction or, in the case of
Delaware, any other laws, or as to any matters of municipal law or the laws of
any other local agencies within any state. With your permission, we have based
our opinions set forth in paragraph 7 exclusively upon our review of Article 9
of the Uniform Commercial Code of the State of Delaware as set forth in the CCH
SECURED TRANSACTIONS GUIDE, as supplemented through February 8, 2005
(without regard to judicial interpretations thereof or any regulations
promulgated thereunder or any other laws of the State of Delaware), and
referred to herein as the “Delaware UCC.”
 We call to your attention that we are
not licensed to practice in the State of Delaware.

 

Our opinions
herein are based upon our consideration of only those statutes, rules and
regulations which, in our experience, are normally applicable to borrowers and
guarantors in secured loan transactions, provided that no opinion is expressed
as to securities laws, tax laws, antitrust or trade regulation laws, insolvency
or fraudulent transfer laws, antifraud laws, NASD\NYSE rules, Food and Drug
Administration rules and regulations, pension or employee benefit laws,
compliance with fiduciary duty requirements, usury laws, environmental laws, or
other laws excluded by customary practice. We express no opinion as to any
state or federal laws or regulations applicable to the subject transactions
because of the legal or regulatory status or nature or extent of the business
of any parties to the Loan Documents or of any of their affiliates.

 

2

 

Subject to the
foregoing and the other matters set forth herein, it is our opinion that, as of
the date hereof:

 

1.             Each of the Credit
Parties is a corporation under the DGCL with corporate power and authority to
own its properties and conduct its business and enter into the Loan Documents
and perform its obligations thereunder. Based on certificates from public
officials, we confirm that each of the Credit Parties is in good standing under
the laws of the State of Delaware.

 

2.             The execution,
delivery and performance of the Loan Documents by each of the Credit Parties
party thereto have been duly authorized by all necessary corporate action of
such Credit Parties, and the Loan Documents have been duly executed and
delivered by each of the Credit Parties party thereto.

 

3.             Each of the Loan
Documents constitutes a legally valid and binding obligation of each of the
Credit Parties party thereto, enforceable against each such Credit Party in
accordance with its respective terms.

 

4.             The execution and
delivery of the Loan Documents by each of the Credit Parties party thereto, the
borrowing and guaranty of the Loans and the granting of the security interests
pursuant to the Loan Documents on the date hereof do not:

 

(i)            violate the provisions of the
Governing Documents,

 

(ii)           result in the breach of or a default
under any of the Material Agreements,

 

(iii)          violate the DGCL or any federal or New
York statute, rule, or regulation applicable to either of the Credit Parties
(including, without limitation, Regulations T, U or X of the Board of Governors
of the Federal Reserve System, assuming the Borrower complies with the
provisions of the Loan Documents relating to the use of proceeds), or

 

(iv)          require any consents, approvals, or
authorizations to be obtained by either of the Credit Parties, or any
registrations, declarations or filings to be made by either of the Credit
Parties, under any federal or New York statute, rule, or regulation applicable
to such Credit Party except filings and recordings required in order to perfect
or otherwise protect the security interests under the Loan Documents.

 

5.             The Pledge
Agreement creates a valid security interest in favor of the Collateral Agent in
that portion of the collateral described in Section 2.1 of the Pledge Agreement
in which the Borrower has rights and a valid security interest may be created
under Article 9 of the NY UCC (the “Pledged UCC Collateral”),
which security interest secures the Secured Obligations (as defined in the
Pledge Agreement).

 

3

 

6.             Upon delivery of
that portion of the Pledged UCC Collateral consisting of the certificates in registered
form representing the ownership interests in those entities listed on Schedule
4.4 to the Pledge Agreement that constitute “certificated securities” within
the meaning of Section 8-102(a)(4) of the NY UCC and that are listed on Exhibit
2 to this opinion (the “Pledged Securities”)
to the Collateral Agent in, and while located in the State of New York,
pursuant to the Pledge Agreement indorsed to the Collateral Agent or in blank,
in each case, by an effective endorsement, the security interest in favor of
the Collateral Agent in the Pledged Securities will be perfected.

 

7.             The Borrower
Financing Statement is in appropriate form for filing in the Delaware Filing
Office. Upon the proper filing of the Borrower Financing Statement in the
Delaware Filing Office, the security interest in favor of the Collateral Agent
for the benefit of the Lenders in the Pledged UCC Collateral described in the
Borrower Financing Statement will be perfected to, the extent a security
interest in such Pledged UCC Collateral can be perfected under the Delaware UCC
by the filing of a financing statement in that office.

 

8.             Neither the
Borrower nor the Guarantor is an “investment company” as such term is defined
in the Investment Company Act of 1940, as amended.

 

The opinions
expressed in paragraphs 3 and 4 do not include any opinions with respect to the
creation, validity, perfection or priority of any security interest or lien,
and the opinions expressed in 3 and 4(iii) do not include any opinions with
respect to compliance with laws relating to permissible rates of interest.

 

The opinions
expressed in paragraph 3 and the opinions expressed in paragraphs 5 - 7 as to
the creation, validity, perfection and priority of the security interests and
liens referred to therein are further subject to the following limitations,
qualifications and exceptions:

 

(a)           the effects of bankruptcy,
insolvency, reorganization, preference, fraudulent transfer, moratorium or
other similar laws relating to or affecting the rights or remedies of creditors;

 

(b)           the effects of general principles of
equity, whether considered in a proceeding in equity or at law (including the
possible unavailability of specific performance or injunctive relief), concepts
of materiality, reasonableness, good faith and fair dealing, and the discretion
of the court before which a proceeding is brought;

 

(c)           the unenforceability under certain
circumstances under law or court decisions of provisions for the
indemnification of or contribution to a party with respect to a liability where
such indemnification or contribution is contrary to public policy; and

 

(d)           we express no opinion with respect to
the enforceability of (i) consents to, or restrictions upon, judicial relief or
jurisdiction or venue; (ii) advance waivers of claims, defenses, rights granted
by law, or notice, opportunity for hearing, evidentiary requirements, statutes
of limitation, trial by jury or at law, or other procedural rights; (iii)
provisions for exclusivity, election or cumulation of rights or remedies;

 

4

 

(iv) restrictions upon non-written modifications and waivers; (v)
provisions authorizing or validating conclusive or discretionary
determinations; (vi) grants of setoff rights; (vii) provisions to the effect that
a guarantor is liable as a primary obligor, and not as a surety; (viii)
provisions for the payment of attorneys’ fees where such payment is contrary to
law or public policy; (ix) proxies, powers and trysts; (x) provisions
prohibiting, restricting, or requiring consent to assignment or transfer of any
right or property; and (xi) provisions for liquidated damages, default
interest, late charges, monetary penalties, prepayment or make-whole premiums
or other economic remedies.

 

The opinions
set forth above are also subject to (i) the unenforceability of contractual
provisions waiving or varying the rules listed in Section 9-602 of the NY UCC,
(ii) the unenforceability under certain circumstances of contractual provisions
respecting self-help or summary remedies without notice of or opportunity for
hearing or correction, (iii) the effect of provisions of the NY UCC, which
require a secured party, to act in good faith and in a commercially reasonable
manner, and (iv) the effect of Sections 9-406, 9-407, 9-408 or 9-409 of the NY
UCC on any provision of any Loan Document that purports to prohibit, restrict,
require consent for or otherwise condition the assignment of rights under such
Loan Document.

 

In rendering
the opinions in clause (ii) of paragraph 4 insofar as they require
interpretation of the Material Agreements, with your consent, (i) we have
assumed that all courts of competent jurisdiction would enforce such agreements
in accordance with their plain meaning, (ii) to the extent that any questions
of legality or legal construction have arisen in connection with our review, we
have applied the laws of New York in resolving such questions, although certain
of the Material Agreements may be governed by other laws, (iii) we express no
opinion with respect to the effect of any action or inaction by the Credit
Parties under the Loan Documents or the Material Agreements which may result in
a breach or default under any Material Agreement, and (iv) we express no
opinion with respect to any matters which require the performance of a
mathematical calculation or the making of a financial or accounting
determination. Because certain of the Material Agreements may be governed by
laws other than New York law, this letter may not be relied upon as to whether
a breach or default would occur under the law actually governing such Material
Agreements.

 

Our opinions
expressed above are limited to Article 9 of the Applicable UCC, and therefore
those opinion paragraphs, among other things, do not address collateral of a
type not subject to, or excluded from the coverage of, Article 9, as the case
may be, of the Applicable UCC. Additionally,

 

(i)            We express no opinion with respect
to: (a) the priority of any security interest or lien; or (b) any agricultural
lien or any collateral that consists of letter-of-credit rights, commercial
tort claims, goods covered by a certificate of title, claims against any
government or governmental agency, consumer goods, crops growing or to be
grown, timber to be cut, goods which are or are to become fixtures, or
as-extracted collateral.

 

(ii)           Our opinions in paragraphs 5 - 7
above are not based on any specialized knowledge of the type, nature or extent
of the business of any parties to the

 

5

 

Loan Documents or any of their affiliates, and we express no opinion as
to the impact of such business on the Collateral Agent’s or Lenders’ rights in
any of the collateral.

 

(iii)          We assume the descriptions of
collateral contained, or attached as schedules to, the Loan Documents
sufficiently describe the collateral intended to be covered by the Loan
Documents, and we express no opinion as to whether the phrases “all personal
property” or “all assets” or similarly general phrases would be sufficient to
create a valid security interest in the collateral or particular item or items
of collateral.

 

(iv)          We have assumed that the Borrower has,
or with respect to after-acquired property will have, rights in the collateral
or the power to transfer rights in the collateral, and that value has been
given, and we express no opinion as to the nature or extent of the Borrower’s
rights in any of the collateral and we note that with respect to any
after-acquired property, the security interest will not attach until the
Borrower, as applicable, acquires such rights or power.

 

(v)           We call to your attention the fact
that the perfection of a security interest in “proceeds” (as defined in the
Applicable UCC) of collateral is governed and restricted by Section 9-315 of
the Applicable UCC.

 

(vi)          We express no opinion regarding the
effect of any security interest perfected prior to July 1, 2001 under the
Applicable UCC or outside the Applicable UCC.

 

(vii)         We have assumed that the exact legal
name of the Borrower is as set forth in the copy of its organizational
documents certified by the Delaware Secretary of State.

 

(viii)        Section 552 of the federal Bankruptcy
Code limits the extent to which property acquired by a debtor after the
commencement of a case under the federal Bankruptcy Code may be subject to a
security interest arising from a security agreement entered into by the debtor
before the commencement of such case.

 

(ix)           We express no opinion with respect to
any property subject to a statute, regulation or treaty of the United States whose
requirements for a security interest’s obtaining priority over the rights of a
lien creditor with respect to the property preempt Section 9-310(a) of the
Applicable UCC.

 

(x)            We express no opinion with respect
to any goods which are accessions to, or commingled or processed with, other
goods to the extent that the security interest is limited by Section 9-335 or
9-336 of the Applicable UCC.

 

(xi)           We have assumed that there are no
effective agreements prohibiting, restricting or conditioning the assignment of
any portion of the collateral and that any conditions for the assignment
thereof have been complied with.

 

(xii)          We express no opinion regarding any
security interest in any copyrights, patents, trademarks, service marks or
other intellectual property, the proceeds

 

6

 

thereof or money due with respect to the lease, license or use thereof
except to the extent Article 9 of the Applicable UCC may be applicable to the
foregoing and, without limiting the generality of the foregoing, we express no
opinion as to the effect of any federal laws relating to copyrights, patents,
trademarks, service marks or other intellectual property on the opinions
expressed herein.

 

(xiii)         We express no opinion as to the priority
of the Collateral Agent’s security interest in the Pledged Securities as
against any lien creditor to the extent that such security interest purports to
secure any advances or other obligations other than those that are made without
knowledge of the lien or pursuant to a commitment entered into without
knowledge of the lien.

 

With your
consent, we have assumed (a) that the Loan Documents and the Working Capital
Intercreditor Agreement have been duly authorized, executed and delivered by
the parties thereto other than the Borrower and the Guarantor, (b) that the
Loan Documents and the Working Capital Intercreditor Agreement constitute
legally valid and binding obligations of the parties thereto other than the
Borrower and the Guarantor, enforceable against each of them in accordance with
their respective terms, and (c) that the status of the Loan Documents and the
Working Capital Intercreditor Agreement as legally valid and binding
obligations of the parties is not affected by any (i) breaches of, or defaults
under, agreements or instruments, (ii) violations of statutes, rules,
regulations or court or governmental orders, or (iii) failures to obtain
required consents, approvals or authorizations from, or make required
registrations, declarations or filings with, governmental authorities, provided
that we make no such assumption to the extent we have opined as to such matters
with respect to the Borrower herein.

 

We call to
your attention that certain partners of Latham & Watkins LLP have direct
and indirect interests in the equity and debt of the Borrower.

 

This letter is
furnished only to you and is solely for your benefit in connection with the
transactions covered hereby. This letter may not be relied upon by you for any
other purpose, or furnished to, assigned to, quoted to or relied upon by any
other person, firm or entity for any purpose, without our prior written
consent, which may be granted or withheld in our discretion. At your request,
we hereby consent to reliance hereon by any future assignee of your interest in
the loans under the Third-Lien Loan Agreement pursuant to an assignment that is
made and consented to in accordance with the express provisions of Section
10.6(c) of the Third-Lien Loan Agreement, on the condition and
understanding that (i) this letter speaks only as of the date hereof, (ii) we
have no responsibility or obligation to update this letter, to consider its
applicability or correctness to other than its addressee, or to take into
account changes in law, facts or any other developments of which we may later
become aware, and (iii) any such reliance by a future assignee must be actual
and reasonable under the circumstances existing at the time of assignment,
including any changes in law, facts or any other developments known to or reasonably
knowable by the assignee at such time.

 

Very truly yours,

 

7

 

ANNEX A

MATERIAL AGREEMENTS

 

 

 

8

 

EXHIBIT 1

 

BORROWER FINANCING STATEMENT

 

 

 

 

EXHIBIT 2

 

PLEDGED SECURITIES

 

 

 

 

EXHIBIT E TO 

THIRD-LIEN LOAN AND GUARANTY AGREEMENT

 

FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

 

This
Assignment and Assumption Agreement (the “Assignment”) is
dated as of the Effective Date set forth below and is entered into by and
between [Insert name of Assignor] (the “Assignor”) and [Insert
name of Assignee] (the “Assignee”). Capitalized
terms used but not defined herein shall have the meanings given to them in the
Third-Lien Loan and Guaranty Agreement identified below (as it may be amended,
supplemented or otherwise modified from time to time, the “Third-Lien
Agreement”), receipt of a copy of which is hereby acknowledged by
the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached
hereto are hereby agreed to and incorporated herein by reference and made a
part of this Assignment as if set forth herein in full.

 

For an agreed
consideration, the Assignor hereby irrevocably sells and assigns to the Assignee,
and the Assignee hereby irrevocably purchases and assumes from the Assignor,
subject to and in accordance with the Standard Terms and Conditions and the
Third-Lien Agreement, as of the Effective Date inserted by the Administrative
Agent as contemplated below, the interest in and to all of the Assignor’s
rights and obligations under the Third-Lien Agreement and any other documents
or instruments delivered pursuant thereto that represents the amount and
percentage interest identified below of all of the Assignor’s outstanding
rights and obligations under the respective facilities identified below (the “Assigned Interest”). Such sale and assignment is without
recourse to the Assignor and, except as expressly provided in this Assignment
and the Third-Lien Agreement, without representation or warranty by the
Assignor.

 

	
  1. Assignor:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  2. Assignee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  3.
  Borrower(s):

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  4.
  Administrative Agent:

  	
   

  	
                              ,
  as the administrative agent under the Third-Lien Agreement.

  
	
   

  	
   

  	
   

  
	
  5. Third-Lien
  Agreement:

  	
   

  	
  The
  $49,625,000 Third-Lien Loan and Guaranty Agreement dated as of April 13, 2005
  among RELIANT PHARMACEUTICALS, INC., CERTAIN
  SUBSIDIARIES OF COMPANY, as Guarantor Subsidiaries, the Lenders
  party hereto from time to time, GOLDMAN SACHS CREDIT
  PARTNERS L.P., as Administrative Agent and Collateral Agent.

  

 

E-1

 

6. Assigned
Interest:

 

	
  Aggregate Amount of

  Loans

  for all Lenders

  	
   

  	
  Amount of Loans

  Assigned

  	
   

  	
  Percentage Assigned of Loans

  [*****]

  	
   

  
	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
   

  	
  %

  
									

 

Effective
Date:                       ,
20       [TO BE INSERTED BY ADMINISTRATIVE AGENT
AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE
REGISTER THEREFOR.]

 

7. Notice and
Wire Instructions:

 

	
  [NAME OF ASSIGNOR]

  	
   

  	
  [NAME OF ASSIGNEE]

  
	
   

  	
   

  	
   

  
	
  Notices:

  	
   

  	
  Notices:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attention:

  	
   

  	
   

  	
  Attention:

  
	
   

  	
  Telecopier:

  	
   

  	
   

  	
  Telecopier:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attention:

  	
   

  	
   

  	
  Attention:

  
	
   

  	
  Telecopier:

  	
   

  	
   

  	
  Telecopier:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Wire Instructions:

  	
   

  	
  Wire Instructions:

  

 

 

[SIGNATURES
FOLLOW ON NEXT PAGE]

 

[*****]        Set forth, to at
least 9 decimals, as a percentage of the Commitment/Loans of all Lenders
thereunder.

 

E-2

 

The terms set
forth in this Assignment are hereby agreed to:

 

	
   

  	
  ASSIGNOR

  
	
   

  	
  [NAME OF ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE

  
	
   

  	
  [NAME OF ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  

 

 

Consented to
and Accepted:(6)

 

	
  GOLDMAN SACHS CREDIT PARTNERS L.P.,

  
	
  as
  Administrative Agent

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Title:

  
	
   

  
	
  Consented
  to:

  
	
   

  
	
  RELIANT PHARMACEUTICALS, INC.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Title:

  

 

(6)                                  If
necessary pursuant to Section 10.6(c)(ii) of the Third-Lien Agreement.

 

E-3

 

ANNEX 1

 

STANDARD TERMS
AND CONDITIONS FOR ASSIGNMENT

AND ASSUMPTION AGREEMENT

 

1.                                       Representations
and Warranties.

 

1.1                                 Assignor.
The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free
and clear of any lien, encumbrance or other adverse claim and (iii) it has full
power and authority, and has taken all action necessary, to execute and deliver
this Assignment and to consummate the transactions contemplated hereby; and (b)
assumes no responsibility with respect to (i) any statements, warranties or
representations made in or in connection with any Credit Document, (ii) the
execution, legality, validity, enforceability, genuineness, sufficiency or
value of the Third-Lien Agreement or any other instrument or document delivered
pursuant thereto, other than this Assignment (herein collectively the “Credit Documents”), or any collateral thereunder, (iii) the
financial condition of the Company, any of its Subsidiaries or Affiliates or
any other Person obligated in respect of any Credit Document or (iv) the
performance or observance by the Borrower, any of its Subsidiaries or
Affiliates or any other Person of any of their respective obligations under any
Credit Document.

 

1.2                                 Assignee.
The Assignee (a) represents and warrants that (i) it has full power and
authority, and has taken all action necessary, to execute and deliver this
Assignment and to consummate the transactions contemplated hereby and to become
a Lender under the Third-Lien Agreement, (ii) it meets all requirements of an
Eligible Assignee under the Third-Lien Agreement, (iii) from and after the
Effective Date, it shall be bound by the provisions of the Third-Lien Agreement
and, to the extent of the Assigned Interest, shall have the obligations of a
Lender thereunder, (iv) it has received a copy of the Third-Lien Agreement and
such other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Assignment and to purchase the
Assigned Interest on the basis of which it has made such analysis and decision,
and (v) if it is a Non-US Lender, attached to the Assignment is any
documentation required to be delivered by it pursuant to the terms of the
Third-Lien Agreement, duly completed and executed by the Assignee; and (b)
agrees that (i) it will, independently and without reliance on the
Administrative Agent, the Assignor or any other Lender, and based on such
documents and information as it shall deem appropriate at that time, continue
to make its own credit decisions in taking or not taking action under the
Credit Documents, and (ii) it will perform in accordance with their terms all
of the obligations which by the terms of the Credit Documents are required to
be performed by it as a Lender.

 

E-4

 

2.                                       Payments.
From and after the Effective Date, the Administrative Agent shall make all
payments in respect of the Assigned Interest (including payments of principal,
interest, fees and other amounts) to the Assignor for amounts that have accrued
to but excluding the Effective. Date and to the Assignee for amounts that have
accrued from and after the Effective Date.(7)

 

3.                                       General
Provisions. This Assignment shall be binding upon, and inure to the benefit
of, the parties hereto and their respective successors and assigns. This
Assignment may be executed in any number of counterparts, which together shall
constitute one instrument. Delivery of an executed counterpart of a signature
page of this Assignment by telecopy shall be effective as delivery of a
manually executed counterpart of this Assignment. This Assignment shall be
governed by, and construed in accordance with, the laws of the State of New
York.

 

 

(7)           GSCP/Administrative Agent may adjust as necessary to
conform with its internal systems.

 

E-5

 

EXHIBIT F TO 

THIRD-LIEN LOAN AND GUARANTY AGREEMENT

 

FORM OF CERTIFICATE RE NON-BANK STATUS

 

Reference is
made to the Third-Lien Loan and Guaranty Agreement, dated as of April 13, 2005
(as it may be amended, supplemented or otherwise modified, the “Third-Lien Agreement”; the terms defined therein and not
otherwise defined herein being used herein as therein defined), by and among RELIANT PHARMACEUTICALS, INC. (“Company”),
CERTAIN SUBSIDIARIES OF COMPANY, as
Guarantor Subsidiaries, the Lenders party hereto from time to time, GOLDMAN SACHS CREDIT PARTNERS L.P., as Administrative Agent
and Collateral Agent. Pursuant to Section 2.20(c) of the Third-Lien Agreement,
the undersigned hereby certifies that it is not a “bank” or other Person
described in Section 881(c)(3) of the Internal Revenue Code of 1986, as
amended.

 

	
   

  	
  [NAME OF LENDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

F-1

 

EXHIBIT G-1 TO

THIRD-LIEN LOAN AND GUARANTY AGREEMENT

 

FORM OF CLOSING DATE CERTIFICATE

 

THE UNDERSIGNED HEREBY CERTIFY AS FOLLOWS:

 

1.             We are, respectively, the Chief
Executive Officer and the Chief Financial Officer of RELIANT
PHARMACEUTICALS, INC. (the “Company”).

 

2.             Loan Agreements.

 

a.                                       Pursuant
to Section 2.1 of the First-Lien Loan and Guaranty Agreement dated as of April
13, 2005 (as it may be amended, supplemented or otherwise modified, the “First-Lien Loan Agreement”) among the Company; certain
Subsidiaries of the Company, as Subsidiary Guarantors; Goldman Sachs Credit
Partners L.P. (“GSCP”), as Lender, Lead Arranger, Sole Bookrunner and
Syndication Agent; the other Lenders from time to time party thereto; and The
Bank of New York, as Administrative Agent and Collateral Agent, the Company
requests that Lenders thereunder make a $120,000,000
Loan to the Company on April 13, 2005 (the “Closing Date”);

 

b.                                      Pursuant
to Section 2.1 of the Second-Lien Loan and Guaranty Agreement dated as of April
13, 2005 (as it may be amended, supplemented or otherwise modified, the “Second-Lien Loan Agreement”) among the Company; certain
Subsidiaries of the Company, as Subsidiary Guarantors; GSCP, as Lender, Lead
Arranger, Sole Bookrunner and Syndication Agent; the other Lenders from time to
time party thereto; and Silver Point Finance, LLC, as Administrative Agent and
Collateral Agent, the Company requests that Lenders thereunder make a $30,000,000 Loan to the Company on the Closing Date; and

 

c.                                       Pursuant
to Section 2.1 of the Third-Lien Loan and Guaranty Agreement dated as of April
13, 2005 (as it may be amended, supplemented or otherwise modified, the “Third-Lien Loan Agreement”, and together with the First-Lien
Loan Agreement and the Second-Lien Loan Agreement, the “Loan
Agreements”) among the Company; certain Subsidiaries of the Company,
as Subsidiary Guarantors; the other Lenders from time to time party thereto;
and GSCP, as Administrative Agent and Collateral Agent, the Company requests
that Lenders thereunder make an $49,625,000
Loan to the Company and fund $20,000,000 on
the Closing Date.

 

3.             We have reviewed the terms of
Section 3 of each of the Loan Agreements and the definitions and provisions
contained in such Loan Agreements relating thereto, and in our opinion we have
made, or have caused to be made under our supervision, such examination or
investigation as is necessary to enable us to express an informed opinion as to
the matters referred to herein.

 

G-1-1

 

4.             Capitalized terms used but not
otherwise defined herein have the meanings ascribed to them in the relevant
Loan Agreement.

 

5.             Based upon our review and examination
described in paragraph 3 above, we certify, on behalf of Company, that as
of the date hereof:

 

a.                                       as
of the Closing Date, the representations and warranties contained in each of
the Credit Documents are true, correct and complete in all material respects on
and as of the Closing Date to the same extent as though made on and as of such date,
except to the extent such representations and warranties specifically relate to
an earlier date, in which case such representations and warranties are true,
correct and complete in all respects on and as of such earlier date;

 

b.                                      as
of the Closing Date, no injunction or other restraining order has been issued
and, to our knowledge, no hearing to cause an injunction or other restraining
order to be issued is pending or noticed with respect to any action, suit or
proceeding seeking to enjoin or otherwise prevent the consummation of, or to
recover any damages or obtain relief as a result of, the borrowing contemplated
hereby, and

 

c.                                       as
of the Closing Date, no event has occurred and is continuing or would result
from the consummation of the borrowing contemplated hereby that would
constitute an Event of Default or a Default.

 

6.             Each Credit Party has requested
outside counsel to deliver to Agents and Lenders on the Closing Date favorable
written opinions setting forth substantially the matters in the opinions
designated in (a) Exhibit D, annexed to the First-Lien Loan Agreement, (b) Exhibit
D, annexed to the Second-Lien Loan Agreement, and (c) Exhibit D, annexed to the
Third-Lien Loan Agreement, and as to such other matters as Syndication Agent
and Administrative Agent may reasonably request.

 

7.             Attached hereto as Annex A are true
and complete copies of (a) the Historical Financial Statements, and (b) the
Projections.

 

[SIGNATURES
FOLLOW ON NEXT PAGE]

 

G-1-2

 

The foregoing
certifications are made and delivered as of April 13, 2005.

 

	
   

  	
  RELIANT PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Ernest Mario

  	
   

  
	
   

  	
   

  	
  Chief Executive Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Robert Ferguson III

  	
   

  
	
   

  	
   

  	
  Chief Financial Officer

  	
   

  

 

G-1-3

 

ANNEX A

 

Historical Financial Statements and
Projections

 

G-1-4

 

EXHIBIT G-2 TO 

THIRD-LIEN LOAN AND GUARANTY AGREEMENT

 

FORM OF SOLVENCY CERTIFICATE

 

THE UNDERSIGNED HEREBY CERTIFIES AS FOLLOWS:

 

1.             I am the Chief Financial Officer of
RELIANT PHARMACEUTICALS, INC., a
Delaware corporation (“Company”).

 

2.             Reference is made to that certain:

 

a.                                       First-Lien
Loan and Guaranty Agreement dated as of April 13, 2005 (as it may be amended,
supplemented or otherwise modified, the “First-Lien Loan Agreement”)
among the Company; certain Subsidiaries of the Company, as Subsidiary
Guarantors; Goldman Sachs Credit Partners L.P. (“GSCP”), as Lender, Lead
Arranger, Sole Bookrunner and Syndication Agent; the other Lenders from time to
time party thereto; and The Bank of New York, as Administrative Agent and
Collateral Agent;

 

b.                                      Second-Lien
Loan and Guaranty Agreement dated as of April 13, 2005 (as it may be amended,
supplemented or otherwise modified, the “Second-Lien Loan Agreement”) among the
Company; certain Subsidiaries of the Company, as Subsidiary Guarantors; GSCP,
as Lender, Lead Arranger, Sole Bookrunner and Syndication Agent; the other
Lenders from time to time party thereto; and Silver Point Finance, LLC, as
Administrative Agent and Collateral Agent; and

 

c.                                       Third-Lien
Loan and Guaranty Agreement dated as of April 13, 2005 (as it may be amended,
supplemented or otherwise modified, the “Third-Lien Loan Agreement”, and together
with the First-Lien Loan Agreement and the Second-Lien Loan Agreement, the “Loan
Agreements”) among the Company; certain Subsidiaries of the Company, as
Subsidiary Guarantors; GSCP, as Administrative Agent and Collateral Agent; the
other Lenders from time to time party thereto.

 

3.             Capitalized terms used but not
otherwise defined herein have the meanings ascribed to them in the relevant Loan
Agreement.

 

4.             I have reviewed the terms of
Sections 3 and 4 of each Loan Agreement and the definitions and provisions
contained in such Loan Agreement relating thereto, and, in my opinion, have
made, or have caused to be made under my supervision, such examination or
investigation as is necessary to enable me to express an informed opinion as to
the matters referred to herein.

 

5.             Based upon my review and
examination described in paragraph 4 above, I certify that as of the date
hereof, after giving effect to the consummation of the related financings and 

 

G-2-1

 

the transactions contemplated
by the Credit Documents (as defined in and with respect to each Loan
Agreement), each Credit Party is Solvent.

 

[SIGNATURES FOLLOW ON NEXT PAGE]

 

G-2-2

 

The foregoing
certifications are made and delivered as of April 13, 2005.

 

	
   

  	
  RELIANT PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Robert Ferguson III

  	
   

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  	
   

  

 

G-2-3

 

EXHIBIT H TO 

THIRD-LIEN LOAN AND GUARANTY AGREEMENT

 

FORM OF COUNTERPART AGREEMENT

 

This COUNTERPART AGREEMENT, dated [mm/dd/yy]
(this “Counterpart Agreement”) is delivered
pursuant to that certain Third-Lien Loan and Guaranty Agreement, dated as of April 13, 2005 (as it may be amended, supplemented or
otherwise modified, the “Third-Lien Agreement”;
the terms defined therein and not otherwise defined herein being used herein as
therein defined), by and among RELIANT PHARMACEUTICALS,
INC. (the “Company”), CERTAIN SUBSIDIARIES OF COMPANY, as Guarantor
Subsidiaries, the Lenders party hereto from time to time, GOLDMAN
SACHS CREDIT PARTNERS L.P. as Administrative Agent and Collateral
Agent.

 

Section 1.               Pursuant to Section 5.10 of the
Third-Lien Agreement, the undersigned hereby:

 

agrees that
this Counterpart Agreement may be attached to the Third-Lien Agreement and that
by the execution and delivery hereof, the undersigned becomes a Guarantor under
the Third-Lien Agreement and agrees to be bound by all of the terms thereof;

 

represents and
warrants that each of the representations and warranties set forth in the
Third-Lien Agreement and each other Credit Document and applicable to the
undersigned is true and correct both before and after giving effect to this
Counterpart Agreement, except to the extent that any such representation and
warranty relates solely to any earlier date, in which case such representation
and warranty is true and correct as of such earlier date;

 

no event has
occurred or is continuing as of the date hereof, or will result from the transactions
contemplated hereby on the date hereof, that would constitute an Event of
Default or a Default;

 

agrees to
irrevocably and unconditionally guaranty the due and punctual payment in full
of all Obligations when the same shall become due, whether at stated maturity,
by required prepayment, declaration, acceleration, demand or otherwise
(including amounts that would become due but for the operation of the automatic
stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)) and in
accordance with Section 7 of the Third-Lien Agreement; and

 

the
undersigned hereby (i) agrees that this counterpart may be attached to the
Third-Lien Pledge and Security Agreement, (ii) agrees that the undersigned will
comply with all the terms and conditions of the Security Agreement as if it
were an original signatory thereto, (iii) grants to Secured Party (as such term
is defined in the Third-Lien Pledge and Security Agreement) a security interest
in all of the undersigned’s right, title and interest in and to all “Collateral”
(as such term is defined in the Third-Lien Pledge and Security Agreement) of
the undersigned, in each case whether now or hereafter existing or in which the
undersigned now has or hereafter acquires an interest and wherever the same may
be located and (iv) delivers to Collateral Agent supplements to all schedules
attached to the Third-Lien Pledge and Security Agreement. All such Collateral
shall be deemed to be part of the “Collateral” and hereafter subject to each of
the terms and conditions of the Third-Lien Pledge and Security Agreement.

 

H-1

 

Section 2.               The undersigned agrees from time
to time, upon request of Administrative Agent, to take such additional actions
and to execute and deliver such additional documents and instruments as Administrative
Agent may request to effect the transactions contemplated by, and to carry out
the intent of, this Agreement. Neither this Agreement nor any term hereof may
be changed, waived, discharged or terminated, except by an instrument in
writing signed by the party (including, if applicable, any party required to
evidence its consent to or acceptance of this Agreement) against whom
enforcement of such change, waiver, discharge or termination is sought. Any
notice or other communication herein required or permitted to be given shall be
given in pursuant to Section 10.1 of the Third-Lien Agreement, and all for
purposes thereof, the notice address of the undersigned shalt be the address as
set forth on the signature page hereof. In case any provision in or obligation
under this Agreement shall be invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby.

 

THIS AGREEMENT
SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED, AND ENFORCED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK.

 

[SIGNATURES FOLLOW ON NEXT PAGE]

 

H-2

 

IN WITNESS
WHEREOF, the undersigned has caused this Counterpart Agreement to be duly
executed and delivered by its duly authorized officer as of the date above
first written.

 

	
   

  	
  [NAME OF SUBSIDIARY]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

	
  Address for
  Notices:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attention:

  	
   

  	
   

  
	
   

  	
  Telecopier

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  with a copy
  to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attention:

  	
   

  	
   

  
	
   

  	
  Telecopier

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ACKNOWLEDGED
  AND ACCEPTED,

  	
   

  	
   

  
	
   

  	
  as of the
  date above first written:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  GOLDMAN
  SACHS CREDIT PARTNERS L.P.,

  	
   

  	
   

  
	
   

  	
  as
  Administrative Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  GOLDMAN
  SACHS CREDIT PARTNERS L.P.,

  	
   

  	
   

  
	
   

  	
  as
  Collateral Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

H-3

 

EXHIBIT J TO 

THIRD-LIEN LOAN AND GUARANTY AGREEMENT’

 

FORM OF JOINDER AGREEMENT

 

THIS JOINDER AGREEMENT, dated as of                     
, 2005 (this “Agreement”), by and among [NEW TERM LOAN LENDERS) (each a “New Term
Loan Lender” and collectively the “New Term
Loan Lenders”), RELIANT PHARMACEUTICALS,
INC., a Delaware corporation, as a Borrower (“Company”), and CERTAIN SUBSIDIARIES OF THE COMPANY, as Guarantor
Subsidiaries, GOLDMAN SACHS CREDIT PARTNERS L.P. (“GSCP”),
as Administrative Agent and Collateral Agent.

 

RECITALS:

 

WHEREAS, reference is hereby made to the THIRD-LIEN LOAN AND GUARANTY AGREEMENT, dated as of April 13, 2005 (as it may be amended, restated, supplemented
or otherwise modified from time to time, the “Third-Lien
Agreement”; the terms defined therein and not otherwise defined
herein being used herein as therein defined), by and among the Lenders party
thereto from time to time; GSCP, as Administrative Agent and Collateral Agent;
and

 

WHEREAS, subject to the terms and conditions
of the Third-Lien Agreement, Company may request New Term Loan Commitments by
entering into one or more Joinder Agreements with the New Term Loan Lenders, as
applicable.

 

NOW, THEREFORE, in consideration of the
premises and agreements, provisions and covenants herein contained, the parties
hereto agree as follows:

 

Each New Term
Loan Lender party hereto hereby agrees to commit to provide its respective
Commitment as set forth on Schedule A annexed hereto, on the terms and subject
to the conditions set forth below:

 

Each New Term
Loan Lender (i) confirms that it has received a copy of the Third-Lien
Agreement and the other Credit Documents, together with copies of the financial
statements referred to therein and such other documents and information as it
has deemed appropriate to make its own credit analysis and decision to enter
into this Agreement; (ii) agrees that it will, independently and without
reliance upon the Administrative Agent or any other New Term Loan Lender or
Agent and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under the Third-Lien Agreement; (iii) appoints and authorizes
Administrative Agent and Syndication Agent to take such action as agent on its
behalf and to exercise such powers under the Third-Lien Agreement and the other
Credit Documents as are delegated to Administrative Agent and Syndication
Agent, as the case may be, by the terms thereof, together with such powers as
are reasonably incidental thereto; and (iv) agrees that it will perform in
accordance with their terms all of the obligations which by the terms of the
Credit Agreement are required to be performed by it as a Lender.

 

J-1

 

Each New Term
Loan Lender hereby agrees to make its Commitment on the following terms and
conditions [********]

 

1.             Principal
Payments. Company shall make principal payments on the New Term
Loans on the Maturity Date of the Third-Lien Agreement.

 

2.             Voluntary
and Mandatory Prepayments. Payment of the principal of the New Term
Loans on the Maturity Date shall be reduced in connection with any voluntary or
mandatory prepayments of the New Term Loans in accordance with Sections 2.13
and 2.14 of the Third-Lien Agreement respectively; and provided  further,
that the final installment payable by Company in respect of the New Term Loans
on such date shall be in an amount, if such amount is different from the amount
specified above, sufficient to repay all amounts owing by Company under the
Third-Lien Agreement with respect to the New Term Loans.

 

3.             Prepayment
Fees. Borrower agrees to pay to each Lender under the New Term Loans
the following prepayment fees, if any:  [                    ].

 

4.             [Insert
other additional prepayment provisions with respect to New Term Loans]

 

5.             Other Fees.
Borrower agrees to pay each New Term Loan Lender its Pro Rata Share of an aggregate
fee equal to [                        ,          ]
on [                        ,          ].

 

6.             Proposed
Borrowing. This Agreement represents Borrower’s request to borrow
New Term Loans from New Term Loan Lender as follows (the “Proposed Borrowing”):

 

a.                                       Business
Day of Proposed Borrowing:                                ,
        

 

b.                                      Amount
of Proposed Borrowing: $                                

 

c.                                       Interest
rate:          14.00%

 

7.             New Lenders.
Each New Term Loan Lender acknowledges and agrees that, upon its execution of
this Agreement and the making of New Term Loans, such New Term Loan Lender
shall become a “Lender” under, and for all purposes of, the Credit Agreement
and the other Credit Documents, and shall be subject to and bound by the terms
thereof, and shall perform all the obligations of and shall have all rights of
a Lender thereunder.[********]

 

8.             Credit
Agreement Governs. Except as set forth in this Agreement, New Term
Loans shall otherwise be subject to the provisions of the Third-Lien Agreement
and the other Credit Documents.

 

	
  [********]

  	
  Insert
  completed items 1-7 as applicable, with respect to New Term Loans with such
  modifications as may be agreed to by the parties hereto to the extent
  consistent with Section 2.24 of the Credit Agreement.

  
	
  [********]

  	
  Insert
  bracketed language if the lending institution is not already a Lender.

  

 

J-2

9.             Company’s
Certifications. By its execution of this Agreement, the undersigned
officer, to the best of his or her knowledge, and Company hereby certify that:

 

i.                                          [The
representations and warranties contained in the Third-Lien Agreement and the
other Credit Documents are true and correct in all material respects on and as
of the date hereof to the same extent as though made on and as of the date
hereof, except to the extent such representations and warranties specifically
relate to an earlier date, in which case such representations and warranties
were true and correct in all material respects on and as of such earlier date;]

 

ii.                                       No
event has occurred and is continuing or would result from the consummation of
the Proposed Borrowing contemplated hereby that would constitute a Default or
an Event of Default; and

 

iii.                                    [Company has performed in all material respects all agreements and
satisfied all conditions which the Credit Agreement provides shall be performed
or satisfied by it on or before the date hereof.]

 

10.           Company Covenants.
By its execution of this Agreement, Company hereby covenants that:

 

i.                                          Company
shall deliver or cause to be delivered the following legal opinions and documents:
 [                    ],
together with all other legal opinions and other documents reasonably requested
by Administrative Agent in connection with this Agreement.

 

11.           Eligible Assignee.
By its execution of this Agreement, each New Term Loan Lender represents and
warrants that it is an Eligible Assignee.

 

12.           Non-US Lenders.
For each New Term Loan Lender that is a Non-US Lender, delivered herewith to
Administrative Agent are such forms, certificates or other evidence with
respect to United States federal income tax withholding matters as such New
Term Loan Lender may be required to deliver to Administrative Agent pursuant to
subsection 2.23(c) of the Third-Lien Agreement.

 

13.           Recordation of the New
Loans. Upon execution and delivery hereof, Administrative Agent will
record the New Term Loans made by New Term Loan Lenders in the Register.

 

14.           Amendment, Modification
and Waiver. This Agreement may not be amended, modified or waived
except by an instrument or instruments in writing signed and delivered on behalf
of each of the parties hereto.

 

15.           Entire Agreement.
This Agreement, the Third-Lien Agreement and the other Credit Documents
constitute the entire agreement among the parties with respect to the subject
matter hereof and thereof and supersede all other prior agreements and
understandings, both written and verbal, among the parties or any of them with
respect to the subject matter hereof.

 

J-3

 

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

 

17.           Severability. Any
term or provision of this Agreement which is invalid or unenforceable in any
jurisdiction shall, as to that jurisdiction, be ineffective to the extent of
such invalidity or unenforceability without rendering invalid or unenforceable
the remaining terms and provisions of this Agreement or affecting the validity
or enforceability of any of the terms or provisions of this Agreement in any
other jurisdiction. If any provision of this Agreement is so broad as to be
unenforceable, the provision shall be interpreted to be only so broad as would
be enforceable.

 

18.           Counterparts. This
Agreement may be executed in counterparts, each of which shall be deemed to be
an original, but all of which shall constitute one and the same agreement.

 

J-4

 

IN WITNESS WHEREOF, each of the undersigned
has caused its duly authorized officer to execute and deliver this Joinder
Agreement as of [                        ,          ].

 

	
   

  	
  [NAME OF NEW TERM LOAN LENDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RELIANT PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

J-5

	
  Consented to
  by:

  
	
   

  
	
  GOLDMAN
  SACHS CREDIT PARTNERS, LP,

  
	
  as Administrative Agent

  
	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

J-6

 

SCHEDULE A 

TO JOINDER AGREEMENT

 

	
  Name of New Term Lender

  	
   

  	
  Type of Commitment

  	
   

  	
  Amount

  	
   

  
	
  [                              ]

  	
   

  	
  New Term Loan Commitment

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total:

  	
   

  	
  $

  	
   

  	
   

  

 

J-7

 

EXHIBIT K TO 

THIRD-LIEN LOAN AND GUARANTY AGREEMENT

 

FORM OF PERSONAL PROPERTY COLLATERAL ACCESS
AGREEMENT

 

This PERSONAL PROPERTY COLLATERAL ACCESS AGREEMENT (this “Agreement”) is dated as of [ ] [ ],
2005 and entered into by PRIORITY HEALTHCARE
CORPORATION (“Warehouser”), THE BANK OF NEW YORK, as administrative
agent and collateral agent (the “First-Lien Agent”)
for the lenders (collectively, the “First-Lien Lenders”)
from time to time party to the First-Lien Loan Agreement (as defined below), SILVER POINT FINANCE, LLC, as administrative agent and
collateral agent (the “Second-Lien Agent”)
for the lenders (collectively, the “Second-Lien Lenders”)
from time to time party to the Second-Lien Loan Agreement (as defined below)
and GOLDMAN SACHS CREDIT PARTNERS, L.P. (“GSCP”),
as administrative agent and collateral agent (the “Third-Lien
Agent”) for the lenders (collectively, the “Third-Lien
Lenders”) from time to time party to the Third-Lien Loan Agreement
(as defined below) (First-Lien Agent, First-Lien Lenders, Second-Lien Agent,
Second-Lien Lenders, Third-Lien Agent and Third-Lien Lenders, collectively, the
“Secured Parties”).

 

RECITALS:

 

WHEREAS, reference is made to that certain:

 

a)                                      First-Lien
Loan and Guaranty Agreement, dated as of April 13, 2005
(as it may be amended, supplemented or otherwise modified, the “First-Lien Loan Agreement”), by and among Reliant
Pharmaceuticals, Inc. (the “Company”);
certain Subsidiaries of the Company, as Subsidiary Guarantors; GSCP, as Lender,
Sole Lead Arranger, Sole Bookrunner and Syndication Agent; the First-Lien
Lenders and the First-Lien Agent, pursuant to which Company has executed that
certain First-Lien Pledge and Security Agreement and other Collateral Documents
in relation to the First-Lien Loan Agreement;

 

b)                                     Second-Lien
Loan and Guaranty Agreement, dated as of April 13, 2005
(as it may be amended, supplemented or otherwise modified, the “Second-Lien Loan Agreement”), by and among the Company;
certain Subsidiaries of the Company, as Subsidiary Guarantors; GSCP, as Lender,
Sole Lead Arranger, Sole Bookrunner and Syndication Agent; the Second-Lien
Lenders and the Second-Lien Agent, pursuant to which Company has executed that
certain Second-Lien Pledge and Security Agreement and other Collateral
Documents in relation to the Second-Lien Loan Agreement; and

 

c)                                      Third-Lien
Loan and Guaranty Agreement, dated as of April 13, 2005
(as it may be amended, supplemented or otherwise modified, the “Third-Lien Loan Agreement”; and together with the First-Lien
Loan Agreement and the Second-Lien Loan Agreement, the “Loan
Agreements”), by and among the Company; certain Subsidiaries of the
Company, as Subsidiary Guarantors; the Third-Lien Lenders and the Third-Lien
Agent, pursuant to which Company

 

K-1

 

has executed that certain Third-Lien Pledge and Security Agreement and
other Collateral Documents in relation to the Third-Lien Loan Agreement.

 

WHEREAS, Company and Warehouser have entered
into a servicing agreement (the “Servicing Agreement”)
pursuant to which Warehouser has possession of and holds all or a portion of the
Company’s Inventory described on Exhibit A annexed hereto at the
Warehouser’s facility located at its address listed on the signature page (the “Premises”);

 

WHEREAS, Company’s repayment of the extensions
of credit made by the Secured Parties under their respective Loan Agreement
will be secured, in part, by all Inventory of Company (including all Inventory
of Company now or hereafter located on the Premises (the “Subject
Collateral”)); and

 

WHEREAS, the Secured Parties have requested
that Warehouser execute this Agreement as a condition to the extension of
credit to Company under the Loan Agreements.

 

WHEREAS, Capitalized terms used but not
otherwise defined herein have the meanings ascribed to them in the relevant
Loan Agreement.

 

NOW, THEREFORE, in consideration of these
premises and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Warehouser hereby represents and
warrants to, and covenants and agrees with, the Secured Parties as follows:

 

1.             Warehouser hereby (a) waives and
releases unto each of the Controlling Party and its successors and assigns any
and all rights granted by or under any present or future laws to levy or
distraint for rent or any other charges which may be due to Warehouser against
the Subject Collateral, and any and all other claims, liens and demands of
every kind which it now has or may hereafter have against the Subject
Collateral, and (b) agrees that any rights it may have in or to the Subject
Collateral, no matter how arising (to the extent not effectively waived
pursuant to clause (a) of this paragraph 1), shall be subordinate to the rights
of Secured Parties under their respective Loan Agreement and Pledge and
Security Agreement. Warehouser acknowledges that the Subject Collateral is and
will remain personal property of the Company. As used herein, “Controlling Party” means the First-Lien Agent; provided,
however, that at such time as (i) all obligations owing to the First-Lien Agent
and the First-Lien Lenders have been indefeasibly paid in full in cash; (ii)
all Commitments of the First-Lien Agent and the First-Lien Lenders to provide
financial accommodations to or for the benefit of Company and its affiliates
have terminated; (iii) all financing agreements among the First-Lien Agent,
First-Lien Lenders, Company and its affiliates have terminated and (iv) the
First-Lien Agent has provided Warehouser with a written notice that the
First-Lien Agent has ceased to be the Controlling Party hereunder, “Controlling
Party” shall mean the Second-Lien Agent; provided,
that at such time as (i) all obligations owing to the Second-Lien Agent and
Second-Lien Lenders have been indefeasibly paid in full in cash; (ii) all
Commitments of Second-Lien Collateral Agent and Second-Lien Lenders to provide
financial accommodations to or for the benefit of Company and its affiliates
have

 

K-2

 

terminated; (iii) all financing agreements among Second-Lien Agent,
Second-Lien Lenders, Company and its affiliates have terminated and (iv)
Second-Lien Collateral Agent has provided Warehouser with a written notice that
Second-Lien Agent has ceased to be the Controlling Party hereunder, “Controlling
Party” shall mean the Third-Lien Agent.

 

2.             Warehouser certifies that (a)
Warehouser is the Warehouser under the Servicing Agreement, (b) the Servicing
Agreement is in full force and effect and has not been amended, modified, or
supplemented except as set forth on Exhibit B annexed hereto, (c) to the
knowledge of Warehouser, there is no defense, offset, claim or counterclaim by
or in favor of Warehouser against Company under the Servicing Agreement or
against the obligations of Warehouser under the Servicing Agreement, (d) no
notice of default has been given under or in connection with the Servicing
Agreement which has not been cured, and Warehouser has no knowledge of the
occurrence of any other default under or in connection with the Servicing
Agreement, and (e) except as disclosed to Secured Parties, no portion of
the Premises is encumbered in any way by any deed of trust or mortgage lien or
ground or superior lease.

 

3.             Warehouser consents to the
placement of the Subject Collateral in the Premises, and Warehouser grants to
Controlling Party a license to enter upon and into the Premises to do any or
all of the following with respect to the Subject Collateral: assemble, have
appraised, display, remove, maintain, prepare for sale or lease, repair,
transfer, or sell (at public or private sale). In entering upon or into the
Premises, Controlling Party hereby agrees to indeninify, defend and hold
Warehouser harmless from and against any and all claims, judgments,
liabilities, costs and expenses incurred by Warehouser caused solely by
Controlling Party’s entering upon or into the Premises and taking any of the
foregoing actions with respect to the Subject Collateral. Such costs shall
include any damage to the Premises made by Controlling Party in severing and/or
removing the Subject Collateral therefrom.

 

4.             Warehouser agrees that it will not
prevent Controlling Party or its designee from entering upon the Premises at
all reasonable times to inspect or remove the Collateral. In the event that
Warehouser has the right to, and desires to, terminate the Servicing Agreement,
Warehouser will deliver notice (the “Warehouser’s Notice”)
to each Collateral Agent to that effect. Within the 45-day period after
Controlling Party receives the Warehouser’s Notice, Controlling Party shall
have the right, but not the obligation, to cause the Subject Collateral to be
removed from the Premises. During such 45-day period, Warehouser will not
remove the Subject Collateral from the Premises nor interfere with Controlling
Party’s actions in removing the Subject Collateral from the Premises or Controlling
Party’s actions in otherwise enforcing its security interest in the Subject
Collateral. Notwithstanding anything to the contrary in this paragraph,
Controlling Party shall at no time have any obligation to remove the Subject
Collateral from the Premises.

 

K-3

 

5.             Warehouser shall send to the
Secured Parties a copy of any notice of default under the Servicing Agreement
sent by Warehouser to Company. In, addition, Warehouser shall send to
Collateral Agents and Administrative Agents a copy of any notice received by
Warehouser of a breach or default under any other lease, mortgage, deed of
trust, security agreement or other instrument to which Warehouser is a party
which may affect Warehouser’s rights in, or possession of, the Premises.

 

6.             All notices to the Secured Parties
under this Agreement shall be in writing and sent to the First-Lien Agent,
Second-Lien Agent and Third-Lien Agent, as applicable, at its address set forth
on the signature page hereof by facsimile, by electronic communication, by
United States mail, or by overnight delivery service.

 

7.             The provisions of this Agreement
shall continue in effect until Warehouser shall have received each Controlling
Party’s written certification that all amounts advanced under each of the
Agreements have been paid in full, in accordance with their respective terms.

 

8.             This Agreement and the rights and
obligations of the parties hereunder shall be governed by, and shall be
construed and enforced in accordance with, the laws of the State of New York.

 

[SIGNATURES FOLLOW ON NEXT PAGE]

 

K-4

 

IN WITNESS WHEREOF, the undersigned have
caused this Agreement to be duly executed and delivered as of the day and year
first set forth above.

 

 

	
  NOTICE ADDRESS:

  	
  “WAREHOUSER”

  
	
   

  	
   

  
	
  2450 Spiegel Drive

  Groveport, Ohio 43125

  Attention:

  	
  PRIORITY HEALTHCARE CORPORATION

  
	
  Telecopier:

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
  PREMISES

  	
   

  
	
  (if different from address listed above):

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
								

 

K-5

 

By its
acceptance hereof, as of the day and year first set forth above, the Secured
Parties agree to be bound by the provisions hereof.

 

 

	
  NOTICE ADDRESS:

  	
  “FIRST-LIEN AGENT”

  
	
   

  	
   

  
	
  600 E. Las Colinas Boulevard 

  Irving, TX 75039

  Attention:

  	
  THE BANK OF NEW YORK

  
	
  Telecopier:

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  “SECOND-LIEN AGENT”

  
	
   

  	
   

  
	
  Two Greenwich Plaza 

  First Floor

  Greenwich, CT 06830 

  Attention:

  	
  SILVER POINT FINANCE, LLC

  
	
  Telecopier:

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  “THIRD-LIEN AGENT”

  
	
   

  	
   

  
	
  85 Broad Street

  	
  GOLDMAN SACHS CREDIT PARTNERS L.P.

  
	
  New York, NY 10004

  	
  By:

  	
   

  	
   

  
	
  Attention:  Elizabeth Fischer

  	
  Name:

  	
   

  	
   

  
	
  Telecopier:  (212) 902-1021

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
								

 

K-6

 

EXHIBIT A TO

PERSONAL PROPERTY COLLATERAL ACCESS AGREEMENT

 

Legal
Description of Inventory:

 

 

 

 

K-7Exhibit 10.52(a)

 

RELIANT PHARMACEUTICALS, INC.

110 Allen Road

Liberty Corner, NJ 07938

 

April
13, 2005

 

The Lenders party to that
certain Third-Lien Loan and Guaranty Agreement dated as of the date hereof,
among Reliant Pharmaceuticals, Inc. (“Borrower”), certain Subsidiaries
of Reliant Pharmaceuticals, Inc., the lenders party thereto and Goldman Sachs
Credit Partners L.P., as Administrative Agent and Collateral Agent (as amended,
restated, supplemented and otherwise modified from time to time, the “Third-Lien
Credit Agreement”)

 

Re:          Additional Warrants

 

Ladies
and Gentlemen:

 

Reference is made to the
Third-Lien Credit Agreement (capitalized terms used herein without definition
shall be used as defined in the Third-Lien Credit Agreement). On the earliest
to occur of (i) the consummation of a Change of Control and (ii) the Maturity
Date, the Borrower will issue to the Lenders, pro rata in accordance with their
respective Commitments, warrants (the “Additional Warrants”) in form
similar to the Warrant Agreement to acquire that number of shares of common
stock of the Borrower sufficient to generate a compound annual return to the
Lenders of 19% (the “Target Return”) under (i) the Third-Lien Credit
Agreement (including, without limitation, the interest rate received thereunder
and any applicable call premium) and (ii) the intrinsic value of those warrants
issued to the Lenders in respect of amounts funded as of the date of
determination (the “Closing Date Warrants”). The negative difference (if
any) between the Target Return and the annual return generated by clauses (i)
and (ii) above is referred to as the “Shortfall”. The value used in
calculating the number of Additional Warrants to be issued will be the
Black-Scholes value.

 

The foregoing
notwithstanding, in the event that the number of shares of common stock
underlying the Closing Date Warrants plus the Additional Warrants (the “Total
Underlying Shares”) exceeds 1,100,000, the number of Additional Warrants
shall be automatically reduced (pro rata among the Lenders in accordance with
the Commitments) to bring the number of Total Underlying Shares to 1,100,000.
The Additional Warrants shall be exercisable at any time on or prior to the
tenth anniversary of the date hereof at a price to be determined by the Board of
Directors of the Borrower (the “Board”) at the time of issuance
(expected to be at fair market value) and will be transferable separately from
the Lenders’ interest in the Loan (but subject to the Borrower’s stockholders
agreement). To the extent the Company is free to make cash payments to the
Warrant holders, the Board, in its discretion, may elect to make up all or a
portion of the Shortfall in cash.

 

 

This letter regarding
Additional Warrants is for the benefit of the Lenders (and their permitted successors
and assigns) and may be enforced by the Lenders as if they were parties hereto.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  RELIANT
  PHARMACEUTICALS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Ferguson III

  
	
   

  	
  Name:

  	
  Robert Ferguson III

  
	
   

  	
  Title:

  	
  CFO

  

 

2

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