Document:

exhibit4-ii.htm

    Exhibit 4(ii) 

     

    
      	
               

               

              FIVE-YEAR CREDIT
      AGREEMENT 

               

              dated as of
      

               

              July 13, 2010,
      

               

              among
      

               

              PALL
      CORPORATION, 

               

              The LENDERS
      Party Hereto, 

               

              JPMORGAN CHASE
      BANK, N.A., 
as Facility Agent 

               

              and

               

              J. P. MORGAN
      EUROPE LIMITED, 
as London Agent 

               

              and

               

              BANK OF TOKYO
      MITSUBISHI UFJ TRUST COMPANY, 
HSBC BANK USA, NATIONAL ASSOCIATION
      

               

              and

               

              WELLS FARGO
      BANK, N.A., 
as Documentation Agents
      
___________________________

J.P. MORGAN SECURITIES INC. and
      
BANC OF AMERICA SECURITIES LLC, 
as Co-Lead Arrangers and Joint
      Bookrunners

               

               

               

            

    

    

    
    

    TABLE OF CONTENTS

     

    Page

     

    
      	ARTICLE I	
            
	 
	Definitions	
            
	 
	SECTION  	1.01.	      	Defined Terms	1
	SECTION	1.02.	
            	Classification of Loans and Borrowings	28
	SECTION	1.03.	
            	Terms Generally	28
	SECTION	1.04.	
            	Accounting Terms; GAAP	28
	SECTION	1.05.	
            	Currency Translation	29
	 
	 
	ARTICLE II	
            
	 
	The Credits	
            
	 
	SECTION	2.01.	
            	Commitments	30
	SECTION	2.02.	
            	Loans and Borrowings	30
	SECTION	2.03.	
            	Requests for Borrowings	31
	SECTION	2.04.	
            	Swingline Loans	31
	SECTION	2.05.	
            	Letters of Credit	33
	SECTION	2.06.	
            	Funding of Borrowings	38
	SECTION	2.07.	
            	Interest Elections	38
	SECTION	2.08.	
            	Termination, Reduction and Increase of Commitments	40
	SECTION	2.09.	
            	Repayment of Loans; Evidence of
      Debt	42
	SECTION	2.10.	
            	Prepayment of Loans	43
	SECTION	2.11.	
            	Fees	44
	SECTION	2.12.	
            	Interest	45
	SECTION	2.13.	
            	Alternate Rate of Interest	46
	SECTION	2.14.	
            	Increased Costs	47
	SECTION	2.15.	
            	Break Funding Payments	48
	SECTION	2.16.	
            	Taxes	49
	SECTION	2.17.	
            	Payments Generally; Pro Rata Treatment;
      Sharing of Set-offs	53
	SECTION	2.18.	
            	Mitigation Obligations; Replacement of Lenders	54
	SECTION	2.19.	
            	Redenomination of Certain Alternative
      Currencies	55
	SECTION	2.20.	
            	Defaulting Lenders	56
	 
	 
	ARTICLE III	
            
	 
	Representations and Warranties	
            
	 
	SECTION	3.01.	
            	Existence, Qualification and Power;
      Compliance with Laws	58

    

    i 

     

    

    
    

    
      	SECTION  	3.02	.	      	Authorization; No
Contravention	58
	SECTION	3.03	.	
            	Governmental Authorization; Other Consents	59
	SECTION	3.04	.	
            	Binding Effect	59
	SECTION	3.05	.	
            	Financial Statements; No Material Adverse Effect	59
	SECTION	3.06	.	
            	Litigation	60
	SECTION	3.07	.	
            	No Default	60
	SECTION	3.08	.	
            	Ownership of Property; Liens	60
	SECTION	3.09	.	
            	Environmental Compliance	60
	SECTION	3.10	.	
            	Insurance	60
	SECTION	3.11	.	
            	Taxes	61
	SECTION	3.12	.	
            	ERISA Compliance	61
	SECTION	3.13	.	
            	Subsidiaries; Equity Interests  	61
	SECTION	3.14	.	
            	Margin Regulations; Investment Company
      Act	61
	SECTION	3.15	.	
            	Disclosure	62
	SECTION	3.16	.	
            	Compliance with Laws	62
	SECTION	3.17	.	
            	Permits and Licenses, Etc.	62
	SECTION	3.18	.	
            	Labor Disputes and Acts of God 
      	62
	SECTION	3.19	.	
            	Specially Designated Nationals or Blocked Persons List	62
	SECTION	3.20	.	
            	Cash Pool Arrangements	62
	 
	 
	ARTICLE IV	
            
	 
	Conditions	
            
	 
	SECTION	4.01	.	
            	Effective Date	63
	SECTION	4.02	.	
            	Each Credit Event	64
	 
	 
	ARTICLE V	
            
	 
	Affirmative Covenants	
            
	 
	SECTION	5.01	.	
            	Financial Statements	65
	SECTION	5.02	.	
            	Certificates; Other Information  	66
	SECTION	5.03	.	
            	Notices	67
	SECTION	5.04	.	
            	Payment of Obligations	68
	SECTION	5.05	.	
            	Preservation of Existence,
Etc.	69
	SECTION	5.06	.	
            	Maintenance of Properties	69
	SECTION	5.07	.	
            	Maintenance of Insurance	69
	SECTION	5.08	.	
            	Compliance with Laws	69
	SECTION	5.09	.	
            	Books and Records	69
	SECTION	5.10	.	
            	Inspection Rights	69
	SECTION	5.11	.	
            	Use of Proceeds	70
	SECTION	5.12	.	
            	Environmental Laws	70
	SECTION	5.13	.	
            	Company Ratings	70
	SECTION	5.14	.	
            	Cash Pool Arrangements	70

    

    ii 

     

    

    
    

    
      	
              ARTICLE VI
      

            	
            
	 	
            
	
              Negative
      Covenants 

            	
            
	
            	
            	
            	
            	  	
            
	SECTION  	6.01	.	    
    	Liens	70
	SECTION	6.02	.	
            	Investments	71
	SECTION	6.03	.	
            	Priority Indebtedness	72
	SECTION	6.04	.	
            	Fundamental Changes	73
	SECTION	6.05	.	
            	Dispositions	73
	SECTION	6.06	.	
            	Restricted Payments	74
	SECTION	6.07	.	
            	Change in Nature of Business	74
	SECTION	6.08	.	
            	Transactions with Affiliates	74
	SECTION	6.09	.	
            	Burdensome Agreements	74
	SECTION	6.10	.	
            	Use of Proceeds	75
	SECTION	6.11	.	
            	Financial Covenants	75
	SECTION	6.12	.	
            	Hazardous Materials	75
	SECTION	6.13	.	
            	Certain Agreements, Amendment and
      Waivers	75
	 
	 
	ARTICLE VII	
            
	 
	Events of Default	
            
	 
	SECTION	7.01	.	
            	Events of Default	75
	SECTION	7.02	.	
            	Remedies Upon Event of Default  	78
	SECTION	7.03	.	
            	Application of Funds	78
	 
	 
	ARTICLE VIII	
            
	 
	The Agents	
            
	 
	 
	 
	ARTICLE IX	
            
	 
	Miscellaneous	
            
	 
	SECTION	9.01	.	
            	Notices	81
	SECTION	9.02	.	
            	Waivers; Amendments	82
	SECTION	9.03	.	
            	Expenses; Indemnity; Damage
    Waiver	83
	SECTION	9.04	.	
            	Successors and Assigns	85
	SECTION	9.05	.	
            	Survival	88
	SECTION	9.06	.	
            	Counterparts; Integration; Effectiveness	88
	SECTION	9.07	.	
            	Severability	89
	SECTION	9.08	.	
            	Right of Setoff	89
	SECTION	9.09	.	
            	Governing Law; Jurisdiction; Consent to
      Service of Process	89
	SECTION	9.10	.	
            	WAIVER OF JURY TRIAL	90

    

    iii 

     

    

    
    

    
      	SECTION  	9.11	.	    
    	Headings	90
	SECTION	9.12	.	
            	Confidentiality	90
	SECTION	9.13	.	
            	Interest Rate Limitation	91
	SECTION	9.14	.	
            	Conversion of Currencies	91
	SECTION	9.15	.	
            	USA Patriot Act	92
	SECTION	9.16	.	
            	No Fiduciary Duty	92

    

    iv 

     

    

    
    

    
      	SCHEDULES:
	 
	Schedule 1.01 
      	--	      	Applicable Funding Account
	Schedule 2.01	--	
            	Commitments
	Schedule 2.05	--	
            	Existing Letters of Credit
	Schedule 3.09	--	
            	Environmental Compliance
	Schedule 3.11	--	
            	Tax-Sharing Agreements
	Schedule 3.13	--	
            	Subsidiaries and Affiliates  
	Schedule 3.20	--	
            	Cash Pool Arrangements
	Schedule 6.01	--	
            	Existing Liens
	Schedule 6.02	--	
            	Other Investments
	Schedule 6.03	--	
            	Priority Indebtedness
	 
	EXHIBITS:
	 
	Exhibit A	--	
            	Form of Assignment and Assumption  
	Exhibit B	--	
            	Form of Compliance Certificate  
	Exhibit C	--	
            	Mandatory Costs Rate
	Exhibit D	--	
            	Form of Borrowing Request
	Exhibit E	--	
            	U.S. Tax Certificate
	Exhibit F	--	
            	Form of Opinion of Cleary Gottlieb Steen & Hamilton
    LLP

    

    v 

     

    

    
    

         FIVE-YEAR CREDIT AGREEMENT dated as of July
13, 2010, among PALL CORPORATION, a New York corporation (the “Company”), the LENDERS from time to time party
hereto, JPMORGAN CHASE BANK, N.A., as Facility Agent, and J. P. MORGAN EUROPE
LIMITED, as London Agent. 

     

                   The Company has requested that the Lenders
(such term and the other capitalized terms used but not defined herein having
the meanings assigned to them in Article I) extend credit in the form of
Commitments under which (a) the Company may obtain Revolving Loans in US Dollars
and Alternative Currencies and (b) the Company may obtain Swingline Loans in US
Dollars and Letters of Credit in US Dollars and Alternative Currencies, in an
aggregate principal or face amount not exceeding the equivalent of
US$500,000,000 at any time outstanding. The proceeds of borrowings hereunder are
to be used for working capital and other general corporate purposes of the
Company and the Subsidiaries, including the provision of credit support for the
Company’s commercial paper program, the repayment of amounts outstanding under
the Existing Credit Agreement and the financing of Permitted Acquisitions. The
Letters of Credit will be used for general corporate purposes of the Company and
the Subsidiaries. The Lenders are willing to extend such credit to the Company
on the terms and subject to the conditions herein set forth. 

     

                   Accordingly,
the parties hereto agree as follows: 

     

    ARTICLE I

     

    Definitions 

     

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

     

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

     

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

     

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

     

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

     

    

    
    

    2 

     

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

     

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

     

                   “Agreement” means this Credit Agreement, as amended from
time to time in accordance with the provisions hereof. 

     

                   “Agreement Currency” has the meaning assigned to such term in
Section 9.14(b). 

     

                   “Alternate Base Rate” means, for any day, a rate per annum equal
to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal
Funds Effective Rate in effect on such day plus 1⁄2 of 1% and (c) the Adjusted
LIBO Rate on such day (or if such day is not a Business Day, the immediately
preceding Business Day) for a deposit in dollars with a maturity of one month
plus 1%. For purposes of clause (c) above, the Adjusted LIBO Rate on any day
shall be based on the rate per annum appearing on the Reuters “LIBOR01” screen
displaying British Bankers’ Association Interest Settlement Rates (or on any
successor or substitute screen provided by Reuters, or any successor to or
substitute for such service, providing rate quotations comparable to those
currently provided on such screen, as determined by the Facility Agent from time
to time for purposes of providing quotations of interest rates applicable to
dollar deposits in the London interbank market) at approximately 11:00 a.m.,
London time, two Business Days prior to such day for deposits in dollars with a
maturity of one month. Any change in the Alternate Base Rate due to a change in
the Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate shall
be effective from and including the effective date of such change in the Prime
Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate, respectively.

     

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

     

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

     

                   “Applicable Creditor” has the meaning assigned to such term in
Section 9.14(b). 

     

                   “Applicable Funding Account” means the applicable account of the Company
with the Facility Agent (or one of its Affiliates) specified on Schedule 1.01
hereto or any other account with the Facility Agent (or one of its
Affiliates) that shall be specified in a written notice signed by a Financial
Officer and delivered to the Applicable Agent and approved by such Applicable
Agent. 

     

    

    
    

    3 

     

                   “Applicable Percentage” means, with respect to any Lender, the
percentage of the total Commitments represented by such Lender’s Commitment;
provided that in the case of Section 2.20 when a Defaulting Lender shall exist,
“Applicable Percentage” shall mean the percentage of the total Commitments
(disregarding any Defaulting Lender’s Commitment) represented by such Lender’s
Commitment. If the Commitments have terminated or expired, the Applicable
Percentages shall be determined based upon the Commitments most recently in
effect, giving effect to any assignments and to any Lender’s status as a
Defaulting Lender at the time of determination. 

     

                   “Applicable Rate” means, for any day, with respect to (a) any
LIBOR Revolving Loan or any EURIBOR Revolving Loan, the applicable rate per
annum set forth below under the caption “LIBOR/EURIBOR Spread”, (b) any ABR
Loan, the applicable rate per annum set forth below under the caption “ABR
Spread” and (c) the commitment fees payable hereunder, the applicable rate per
annum set forth below under the caption “Commitment Fee Rate”, in each case
based upon the ratings by S&P and Moody’s, respectively, applicable on such
date to the Index Debt: 

     

    
      	
            	
            	
            	LIBOR/EURIBOR
	
            	Commitment Fee	ABR Spread	Spread
	Index Debt Ratings:	Rate (basis points)	(basis points)	(basis points)
	Category 1	20	50	150
	A/A2 or
      higher	
            	
            	
            
	Category 2	25	75	175
	A-/A3	
            	
            	
            
	Category 3	30	100	200
	BBB+/Baa1	
            	
            	
            
	Category 4	35	125	225
	BBB/Baa2	
            	
            	
            
	Category 5	45	150	250
	BBB-/Baa3	
            	
            	
            
	Category 6	55	175	275
	BB+/Ba1 or
      lower	
            	
            	  

    

    

    
    

    4 

     

                   For purposes of the foregoing, (i) if either
S&P or Moody’s shall not have in effect a rating for the Index Debt (other
than by reason of the circumstances referred to in the last sentence of this
definition), then such rating agency shall be deemed to have established a
rating in Category 6, (ii) if the ratings established or deemed to have been
established by Moody’s and S&P for the Index Debt shall fall within
different Categories, the Applicable Rate shall be the applicable rate per annum
corresponding to the higher (or numerically lower) of such Categories unless one
of the ratings is two or more Categories lower than the other, in which case the
Applicable Rate shall be determined by reference to the Category next above that
corresponding to the lower of the two ratings and (iii) if the ratings
established or deemed to have been established by S&P and Moody’s for the
Index Debt shall be changed (other than as a result of a change in the rating
system of S&P or Moody’s), such change shall be effective as of the date on
which it is first announced by the applicable rating agency, irrespective of
when notice of such change shall have been furnished by the Company to the
Facility Agent and the Lenders pursuant to Section 5.03(e) or otherwise. Each
change in the Applicable Rate shall apply during the period commencing on the
effective date of such change and ending on the date immediately preceding the
effective date of the next such change. If the rating system of S&P or
Moody’s shall change, or if either such rating agency shall cease to be in the
business of rating corporate debt obligations, the Company and the Lenders shall
negotiate in good faith to amend this definition to reflect such changed rating
system or the unavailability of ratings from such rating agency and, pending the
effectiveness of any such amendment, the Applicable Rate shall be determined by
reference to the rating most recently in effect prior to such change or
cessation. 

     

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

     

                   “Arrangers” means J.P. Morgan Securities Inc. and Banc
of America Securities LLC. 

     

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

     

                   “Attributable Indebtedness” means, on any date, (a) in respect of any
Capital Lease of any Person, the capitalized amount thereof that would appear on
a balance sheet of such Person prepared as of such date in accordance with GAAP
and (b) in respect of any Sale-Leaseback Transaction that does not result in a
Capital Lease, the capitalized amount of the remaining lease payments under the
relevant lease that would appear on a balance sheet of such Person prepared as
of such date in accordance with GAAP if such lease were accounted for as a
Capital Lease. 

     

                   “Audited Financial
Statements” means the
audited consolidated balance sheet of the Company and the Subsidiaries as at
July 31, 2009, and the related audited consolidated statements of earnings,
shareholders’ equity and cash flows of the Company and the Subsidiaries for the
Fiscal Year then ended, including the notes thereto. 

     

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

     

    

    
    

    5 

     

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

     

                   “Beneficial Owner” means, in the case of a Lender that is
classified as a partnership for U.S. Federal income tax purposes, the direct or
indirect partner or owner of such Lender that is treated, for U.S. Federal
income tax purposes, as the beneficial owner of a payment by the Company under
this Agreement. 

     

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

     

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

     

                   “Borrowing Minimum” means (a) in the case of a Borrowing
denominated in US Dollars, US$5,000,000 and (b) in the case of a Borrowing
denominated in any Alternative Currency, the smallest amount of such Alternative
Currency that is an integral multiple of 1,000,000 units of such currency and
that has a US Dollar Equivalent in excess of US$5,000,000. 

     

                   “Borrowing Multiple” means (a) in the case of a Borrowing
denominated in US Dollars, US$1,000,000 and (b) in the case of a Borrowing
denominated in any Alternative Currency, 1,000,000 units of such currency.

     

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

     

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

     

    

    
    

    6 

     

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

     

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

     

                   “Cash Pool Arrangement” means a centralized cash pooling arrangement
of any group of Subsidiaries with a Cash Pool Bank under which such Subsidiaries
make deposits with and receive advances from such Cash Pool Bank in order to
facilitate the efficient deployment of cash of such Subsidiaries. 

     

                   “Cash Pool Availability” means, with respect to any Cash Pool
Arrangement, the aggregate amount
of cash of Subsidiaries on deposit with the applicable Cash Pool Bank under such
Cash Pool Arrangement.

     

                   “Cash Pool Bank” means Bank Mendes Gans N.V. and each other
bank that is a provider of cash pooling arrangements to the Company, Pall
Netherlands B.V. or any of the other Subsidiaries; provided that each such other bank must have a
long-term credit rating of BBB or better by S&P and a long-term obligation
rating of Baa2 or better by Moody’s at the time such bank becomes a Cash Pool
Bank. 

     

                   “Cash Pool Obligations” means, with respect to any Cash Pool
Arrangement, the aggregate
outstanding amount of borrowings by the Subsidiaries under such Cash Pool
Arrangement. 

     

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

     

                   “Change of Control” means, as to the Company, an event or series
of events by which: 

     

         (a) any “person” or “group” (as such terms are
used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but
excluding any employee benefit plan of the Company or its subsidiaries, and any
Person or entity acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan) becomes the “beneficial owner” (as defined in
Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a
person or group shall be deemed to have “beneficial ownership” of all securities
that such person or group has the right to acquire (such right, an “option right”), whether such right is
exercisable immediately or only after the passage of time), directly or
indirectly, of 30% or more of the equity securities of the Company entitled to
vote for members of the board of directors or equivalent governing body of the
Company on a fully-diluted basis (and taking into account all such securities
that such person or group has the right to acquire pursuant to any option
right);

     

    

    
    

    7 

     

         (b) during any period of 12 consecutive
months, a majority of the members of the board of directors or other equivalent
governing body of the Company ceases to be composed of individuals (i) who were
members of that board or equivalent governing body on the first day of such
period, (ii) whose election or nomination to that board or equivalent governing
body was approved by individuals referred to in clause (i) above constituting at
the time of such election or nomination at least a majority of that board or
equivalent governing body or (iii) whose election or nomination to that board or
other equivalent governing body was approved by individuals referred to in
clauses (i) and (ii) above constituting at the time of such election or
nomination at least a majority of that board or equivalent governing body
(excluding, in the case of both clause (ii) and clause (iii), any individual
whose initial nomination for, or assumption of office as, a member of that board
or equivalent governing body occurs as a result of an actual or threatened
solicitation of proxies or consents for the election or removal of one or more
directors by any person or group other than a solicitation for the election of
one or more directors by or on behalf of the board of directors);
or 

     

         (c) any Person or two or more Persons acting
in concert shall have acquired by contract or otherwise, or shall have entered
into a contract or arrangement that, upon consummation thereof, will result in
its or their acquisition of the power to exercise, directly or indirectly, a
controlling influence over the management or policies of the Company, or control
over the Equity Interests of the Company entitled to vote for members of the
board of directors or equivalent governing body of the Company on a
fully-diluted basis (and taking into account all such securities that such
Person or group has the right to acquire pursuant to any option right)
representing 30% or more of the combined voting power of such securities.

     

                   “Charges” has the meaning set forth in Section 9.13.

     

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

     

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

     

    

    
    

    8 

     

                   “Commitment” means, with respect to each Lender, the
commitment of such Lender to make Revolving Loans pursuant to Section 2.01 and
to acquire participations in Swingline Loans and Letters of Credit hereunder,
expressed as an amount representing the maximum aggregate amount of such
Lender’s Revolving Exposure permitted hereunder, as such commitment may be
reduced or increased from time to time pursuant to Section 2.08 or assignments
by or to such Lender pursuant to Section 9.04. The initial amount of each
Lender’s Commitment is set forth on Schedule 2.01, or in the Assignment and Assumption pursuant
to which such Lender shall have assumed its Commitment, as the case may be. The
aggregate amount of Commitments on the date hereof is US$500,000,000.

     

                   “Company” means Pall Corporation, a New York
corporation. 

     

                   “Company Materials” has the meaning set forth in Section
5.02.

     

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

     

                   “Consolidated EBITDA” means, for any four consecutive fiscal
quarter period, for the Company and the Subsidiaries on a consolidated basis, an
amount equal to the Consolidated Net Income (Net Loss) of the Company and the
Subsidiaries for such period, plus the sum, without duplication, for such period
of (a) Consolidated Interest Charges, (b) depreciation and amortization expenses
or charges, (c) income taxes payable to any government or governmental
instrumentality expensed on the Company’s or the Subsidiaries’ books (whether
paid or accrued) and (d) non-cash, non-recurring charges or losses, if any,
minus the sum, without duplication, for such period
of (a) non-cash non-recurring gains, if any, and (b) interest income, determined
in accordance with GAAP applied on a consistent basis. All the foregoing
categories shall be calculated with respect to the Company and the Subsidiaries
on a consolidated basis. At any time Consolidated EBITDA is required to be
calculated hereunder, the Company shall use the amounts set forth in the
financial statement or statements delivered to the Facility Agent covering the
last four consecutive fiscal quarters pursuant to the terms hereof.

     

                   “Consolidated Funded
Indebtedness” means, as of
any date of determination, for the Company and its Subsidiaries on a
consolidated basis, the sum of (a) the outstanding principal amount of all
obligations, whether current or long-term, for borrowed money (including
Obligations hereunder) and all obligations evidenced by bonds, debentures,
notes, loan agreements or other similar instruments, (b) all purchase money
Indebtedness, (c) except as provided in clause (ii) of the next sentence, the
undrawn amount of all letters of credit (including standby and commercial), and
all obligations in respect of bankers’ acceptances, bank guarantees, surety
bonds and similar instruments, (d) all obligations in respect of the deferred
purchase price of property or services (other than trade accounts payable in the
ordinary course of business), (e) all Attributable Indebtedness in respect of
Capital Leases, (f) without duplication, all Guarantees with respect to
outstanding Indebtedness of the types specified in clauses (a) through (e) above
of Persons other than the Company or any Subsidiary, and (g) all Indebtedness of
the types referred to in clauses (a) through (f) above of any partnership or
joint venture (other than a joint venture that is itself a corporation or
limited liability company) in which the Company or a Subsidiary is a general
partner or joint venturer, unless such Indebtedness is expressly made
non-recourse to the Company or such Subsidiary. Notwithstanding the foregoing,
(i) Cash Pool Obligations outstanding under any Cash Pool Arrangement shall be
deemed to constitute Consolidated Funded Indebtedness only to the extent of the
excess thereof over the Cash Pool Availability under such arrangement; (ii)
contingent obligations under undrawn letters of credit, bank guarantees, surety
bonds and similar instruments supporting trade payables, workers’ compensation
and similar obligations and other non-financial obligations shall not be deemed
to constitute Consolidated Funded Indebtedness; (iii) Indebtedness under
arrangements for factoring of foreign receivables shall be deemed to constitute
Consolidated Funded Indebtedness only to the extent the aggregate uncollected
amount of the receivables transferred pursuant to such arrangements at any time
exceeds $50,000,000; and (iv) if the net proceeds of the issuance and sale of
any Refinancing Notes shall be irrevocably deposited at the time of such
issuance and sale with the trustee under the New Notes Indenture for the sole
purpose of repaying amounts due in respect of the New Notes upon the maturity or
redemption thereof, then that portion of the New Notes not in excess of the
amounts so deposited shall be excluded in computing Consolidated Funded
Indebtedness until the earlier of (i) the release of such net proceeds by the
trustee and (ii) the date that is 180 days after the date of such issuance and
sale; provided
further, that
all Refinancing Notes will, at all times after the issuance and sale thereof, be
included in computing Consolidated Funded Indebtedness.

     

    

    
    

    9 

     

                   “Consolidated Interest
Charges” means, for any
four fiscal quarter period, for the Company and the Subsidiaries on a
consolidated basis, the sum, for such period, of (a) all interest, premium
payments, debt discount, fees, charges and related expenses of the Company and
the Subsidiaries in connection with borrowed money (including capitalized
interest but excluding any make-whole and other premium payments in connection
with any redemption of the Existing Notes) or in connection with the deferred
purchase price of assets, in each case to the extent treated as interest in
accordance with GAAP, and (b) the portion of rent expense of the Company and the
Subsidiaries with respect to such period under Capital Leases that is treated as
interest in accordance with GAAP. 

     

                   “Consolidated Leverage Ratio” means, as of any date of determination, the
ratio of (a) Consolidated Funded Indebtedness at such date to (b) Consolidated
EBITDA for the four fiscal quarter period ending on or most recently prior to
such date. 

     

                   “Consolidated Net Income (Net
Loss)” means, for any
period, the net income (or net loss) of the Company and the Subsidiaries on a
consolidated basis for such period determined in accordance with GAAP applied on
a consistent basis. 

     

                   “Consolidated Net Interest Coverage
Ratio” means, as of any
date of determination, the ratio of (a) Consolidated EBITDA to (b) Consolidated
Interest Charges less interest income earned by the Company and the
Subsidiaries, in each case for the four fiscal quarter period ending on such
date. 

     

                   “Consolidated Net Tangible
Assets” means, at any
time, Consolidated Tangible Assets minus all current liabilities (excluding any
thereof which are by their terms
extendible or renewable at the option of the obligor thereon to a time more than
twelve months after the time as of which the amount thereof is being computed
and excluding deferred income taxes) of the Company and the Subsidiaries, all as
set forth in the most recent consolidated balance sheet of the Company and the
Subsidiaries delivered pursuant to Section 5.01 (or, prior to any such delivery,
referred to in Section 3.05) as of such date of determination, determined on a
consolidated basis in accordance with GAAP. 

     

    

    
    

    10 

     

                   “Consolidated Tangible
Assets” means, at any
time, the aggregate amount of assets (less applicable accumulated depreciation,
depletion and amortization and other reserves and other properly deductible
items) of the Company and the Subsidiaries minus all goodwill, trade names, trademarks,
patents, unamortized debt discount and expense and other intangible assets of
the Company and the Subsidiaries, all as set forth in the most recent
consolidated balance sheet of the Company and the Subsidiaries delivered
pursuant to Section 5.01 (or, prior to any such delivery, referred to in Section
3.05) as of such date of determination, determined on a consolidated basis in
accordance with GAAP. 

     

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

     

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

     

                   “Day One” means the time a Recipient (other than an
assignee pursuant to Section 2.18(b)) (i) becomes a Recipient with respect to
its applicable ownership interest in the Loan or Commitment or (ii) designates a
new lending office 

     

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

     

    

    
    

    11 

     

                   “Defaulting Lender” means any Lender that (a) has failed, within
two Business Days of the date required to be funded or paid, to (i) fund any
portion of its Loans (including pursuant to Section 2.06(b)), unless such Lender
notifies the Applicable Agent in writing that such failure is the result of such
Lender’s good faith determination that a condition precedent to funding
(specifically identified and including the particular default, if any) has not
been satisfied, (ii) fund any portion of its participations in Letters of Credit
or Swingline Loans or (iii) pay over to any Credit Party any other amount
required to be paid by it hereunder, unless, in the case of this clause (iii),
such payment is the subject of a good faith dispute identified in writing to the
applicable Credit Party, (b) has notified the Company or any Credit Party in
writing, or has made a public statement to the effect, that it does not intend
or expect to comply with any of its funding obligations under this Agreement
(unless such writing or public statement indicates that such position is based
on such Lender’s good faith determination that a condition precedent
(specifically identified and including the particular default, if any) to
funding a loan under this Agreement cannot be satisfied) or generally under
other agreements in which it commits to extend credit, (c) has failed, within
three Business Days after request by a Credit Party, acting in good faith, to
provide a certification in writing from an authorized officer of such Lender
that it will comply with its obligations (and is financially able to meet such
obligations) to fund prospective Loans and participations in then outstanding
Letters of Credit and Swingline Loans under this Agreement, provided that such Lender shall cease to be a
Defaulting Lender pursuant to this clause (c) upon such Credit Party’s receipt
of such certification in form and substance satisfactory to it and the Facility
Agent, or (d) has become the subject of a Bankruptcy Event.

     

                   “Disposition” or “Dispose” means the sale, transfer, license, lease or
other disposition (including any sale and leaseback transaction) of any property
by any Person, including any sale, assignment, transfer or other disposal, with
or without recourse, of any notes or accounts receivables or any rights and
claims associated therewith.

     

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

     

                   “Eligible Investments” means (a) direct obligations of the United
States of America or any governmental agency thereof which are fully guaranteed
or insured by the United States of America; provided that such obligations mature within two years
from the date of acquisition thereof; (b) US Dollar denominated time deposit
maturing within one year issued by any bank organized and existing under the
laws of the United States of America or any state thereof and having aggregate
capital and surplus in excess of $1,000,000,000; (c) investments in any time
deposit issued by any bank with a long-term credit rating of BBB or better by
S&P and a long-term obligation rating of Baa2 or better by Moody’s made in
connection with a Cash Pool Arrangement; (d) money market mutual funds having
assets in excess of $1,000,000,000; (e) commercial paper rated not less than P-1
or A-1 or their equivalent by Moody’s or S&P, respectively; (f) tax exempt
securities of an issuer organized in the United States of America rated A or
better by Moody’s or S&P; (g) repurchase agreements entered into with any
bank, trust company or financial institution organized under the laws of the
United States of America or any state thereof or under the laws of Puerto Rico,
having capital and surplus in an aggregate amount not less than $1,000,000,000
and relating to any of the obligations referred to in clause (a) above; (h)
short-term investments by any Foreign Subsidiary made in the ordinary course of
its business and in accordance with the Company’s guidelines and procedures,
provided that the aggregate amount of such investments
by the Foreign Subsidiaries shall not exceed $50,000,000, at any one time
outstanding; (i) investments in corporate bonds or notes having maturities of
not more than five years from the date of acquisition thereof and having a
rating of at least A- or better by S&P and A3 or better by Moody’s or (j)
cash. 

     

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

     

    

    
    

    12 

     

                   “Environmental Laws” means any and all Federal, state, local and
foreign statutes, laws, regulations, ordinances, rules, judgments, orders,
decrees, permits, concessions, grants, franchises, licenses, agreements or
governmental restrictions relating to pollution and the protection of the
environment or the release of any materials into the environment, including
those related to hazardous substances or wastes, air emissions and discharges to
waste or public systems. 

     

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

     

                   “Equity Interests” means, with respect to any Person, all of
the shares of capital stock of (or other ownership or profit interests in) such
Person, all of the warrants, options or other rights for the purchase or
acquisition from such Person of shares of capital stock of (or other ownership
or profit interests in) such Person, all of the securities convertible into or
exchangeable for shares of capital stock of (or other ownership or profit
interests in) such Person or warrants, rights or options for the purchase or
acquisition from such Person of such shares (or such other interests), and all
of the other ownership or profit interests in such Person (including
partnership, member or trust interests therein), whether voting or nonvoting,
and whether or not such shares, warrants, options, rights or other interests are
outstanding on any date of determination. 

     

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

     

                   “ERISA Affiliate” means any trade or business (whether or not
incorporated) under common control with the Company within the meaning of
Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for
purposes of provisions relating to Section 412 of the Code). 

     

                   “ERISA Event” means (a) a “reportable event” (as defined
in Section 4043 of ERISA) with
respect to a Pension Plan for which notice thereof has not been waived pursuant
to the regulations under Section 4043(c) of ERISA as in effect on the date
hereof; (b) a withdrawal by the Company or any ERISA Affiliate from a Pension
Plan subject to Section 4063 of ERISA during a plan year in which it was a
substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation
of operations that is treated as such a withdrawal under Section 4062(e) of
ERISA; (c) a complete or partial withdrawal by the Company or any ERISA
Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is
in reorganization; (d) the filing of a notice of intent to terminate, the
treatment of a Plan amendment as a termination under Sections 4041 or 4041A of
ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer
Plan; (e) an event or condition which constitutes grounds under Section 4042 of
ERISA for the termination of, or the appointment of a trustee to administer, any
Pension Plan or Multiemployer Plan; or (f) the imposition of any liability under
Title IV of ERISA, other than for PBGC premiums due but not delinquent under
Section 4007 of ERISA, upon the Company or any ERISA Affiliate if such
liability, taken together with any other such liabilities then existing, would
reasonably be expected to have a Material Adverse Effect. 

     

    

    
    

    13 

     

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

     

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

     

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

     

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

     

                   “Exchange Act” means the U.S. Securities Exchange Act of
1934. 

     

                   “Exchange Rate” means on any day, for purposes of
determining the US Dollar Equivalent of any other currency, the rate at which
such other currency may be exchanged into US Dollars at the time of
determination on such day on the Reuters WRLD Page for such currency. In the
event that such rate does not appear on any Reuters WRLD Page, the Exchange Rate
shall be determined by reference to such other publicly available service for
displaying exchange rates as may be agreed upon by the Applicable Agent and the
Company, or, in the absence of such an agreement, such Exchange Rate shall
instead be the arithmetic average of the spot rates of exchange of the
Applicable Agent in the market where its foreign currency exchange operations in
respect of such currency are then being conducted, at or about such time as the
Applicable Agent shall elect after determining that such rates shall be the
basis for determining the Exchange Rate, on such date for the purchase of US
Dollars for delivery two Business Days later; provided that if at the time of any such
determination, for any reason, no such spot rate is being quoted, the Applicable
Agent may use any reasonable method it deems appropriate to determine such rate,
and such determination shall be conclusive absent manifest error. 

     

                   “Excluded Taxes” means, with respect to payments made under
this Agreement, any of the following Taxes of a Recipient (without duplication):

     

                   (i)
Other Connection Taxes; 

     

    

    
    

    14 

     

                   (ii)
Taxes attributable to such Recipient’s failure to comply with Section 2.16(f);
and 

     

                   (iii) U.S. Federal withholding Taxes resulting
from any law in effect (including FATCA) at Day One (except to the extent that,
pursuant to Section 2.16(a), amounts with respect to such Taxes were payable to
(A) such Recipient’s assignor immediately before such Recipient became a
Recipient with respect to its applicable ownership interest in the Loan or
Commitment or (B) such Recipient immediately before it designated a new lending
office). 

     

                   “Existing Credit Agreement” means the Credit Agreement dated as of June
21, 2006, among the Company, the Subsidiaries party thereto, the lenders party
thereto, JPMorgan Chase Bank, N.A., as facility agent and J. P. Morgan Europe
Limited, as London agent.

     

                   “Existing Indenture” means the Indenture dated as of August 1,
2002, by and among the Company, the guarantors named therein and The Bank of New
York, as Trustee (as amended on October 9, 2007). 

     

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

     

                   “Existing Notes” means the $280 million of 6% Senior Notes
due 2012 issued by the Company pursuant to the Existing Indenture. 

     

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

     

                   “FATCA” means (i) Sections 1471 through 1474 of the
Code, as in effect at Day One, and (ii) any current or future regulations or
official interpretations thereof. 

     

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

     

    

    
    

    15 

     

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

     

                   “Fiscal Year” means any period of twelve consecutive
calendar months ending on July 31st; references to a Fiscal Year with a number
corresponding to any calendar year (e.g., the “2009 Fiscal Year”) refer to the Fiscal
Year ending on July 31st of such calendar year. 

     

                   “Foreign Currency Exposure” means, with respect to any Lender, the
aggregate amount of (a) the sum of the US Dollar Equivalents of such Lender’s
Revolving Loans denominated in Alternative Currencies and (b) the portion of
such Lender’s LC Exposure attributable to Letters of Credit denominated in
Alternative Currencies. 

     

                   “Foreign Currency Sublimit” means $100,000,000. 

     

                   “Foreign Lender” means any Lender that is organized under the
laws of a jurisdiction other than the United States of America or any State
thereof or the District of Columbia. 

     

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

     

                   “GAAP” means generally accepted accounting
principles in the United States as in effect from time to time, including
without limitation, those set forth in the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as approved by
a significant segment of the accounting profession. 

     

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

     

    

    
    

    16

     

                   “Guarantee” means, as to
any Person, any (a) any obligation, contingent or otherwise, of such Person
guaranteeing or having the economic effect of guaranteeing any Indebtedness or
other obligation payable or performable by another Person (the “primary obligor”) in any manner,
whether directly or indirectly, and including any obligation of such Person,
direct or indirect, (i) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness or other obligation, (ii) to purchase
or lease property, securities or services for the purpose of assuring the
obligee in respect of such Indebtedness or other obligation of the payment or
performance of such Indebtedness or other obligation, (iii) to maintain working
capital, equity capital or any other financial statement condition or liquidity
or level of income or cash flow of the primary obligor so as to enable the
primary obligor to pay such Indebtedness or other obligation or (iv) entered
into for the purpose of assuring in any other manner the obligee in respect of
such Indebtedness or other obligation of the payment or performance thereof or
to protect such obligee against loss in respect thereof (in whole or in part) or
(b) any Lien on any assets of such Person securing any Indebtedness or other
obligation of any other Person, whether or not such Indebtedness or other
obligation is assumed by such Person (or any right, contingent or otherwise, of
any holder of such Indebtedness to obtain any such Lien). The amount of any
Guarantee shall be deemed to be an amount equal to the stated or determinable
amount of the related primary obligation, or portion thereof, in respect of
which such Guarantee is made or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof as determined by the
guaranteeing Person in good faith. The term “Guarantee” as a verb has a corresponding
meaning.

     

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

     

                   “IFRS” means the International Financial Reporting
Standards adopted by the International Accounting Standards Board as in effect
from time to time consistently applied throughout the periods
involved.

     

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

     

                   “Indebtedness” means, as to any Person at any time, without
duplication, all of the following, whether or not included as indebtedness or
liabilities in accordance with GAAP: (a) all obligations of such Person for
borrowed money and all obligations of such Person evidenced by bonds,
debentures, notes, loan agreements or other similar instruments; (b) all direct
or contingent obligations of such Person arising under letters of credit
(including standby and commercial), bankers’ acceptances, bank guaranties,
surety bonds and similar instruments; (c) net obligations of such Person under
any Swap Contract; (d) all obligations of such Person to pay the deferred
purchase price of property or services (other than trade accounts payable in the
ordinary course of business and, in each case, not past due for more than 60
days after the date on which such trade account payable was created); (e)
indebtedness (excluding prepaid interest thereon) secured by a Lien on property
owned or being purchased by such Person (including indebtedness arising under
conditional sales or other title retention agreements), whether or not such
indebtedness shall have been assumed by such Person or is limited in recourse;
(f) Capital Leases; (g) all obligations of such Person to purchase, redeem,
retire, defease or otherwise make any payment in respect of any Equity Interest
in such Person or any other Person, valued, in the case of a redeemable
preferred interest, at the greater of its voluntary or involuntary liquidation
preference plus accrued and unpaid dividends; (h) all
Guarantees of such Person in respect of any of the foregoing; and (i) all
Securitization Transactions. For all purposes hereof, the Indebtedness of any
Person shall include the Indebtedness of any partnership or joint venture (other
than a joint venture that is itself a corporation or limited liability company)
in which such Person is a general partner or a joint venturer, unless such
Indebtedness is expressly made non-recourse to such Person. The amount of any Capital Lease as of any date
shall be deemed to be the amount of Attributable Indebtedness in respect thereof
as of such date. 

     

    

    
    

    17 

     

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

     

                   “Indemnified Taxes” means, with respect to payments made under
this Agreement, (i) Taxes other than Excluded Taxes and (ii) Other
Taxes.

     

                   “Index Debt” means senior, unsecured, Long-Term
Indebtedness for borrowed money of the Company that is not guaranteed by any
other Person or subject to any other credit enhancement. 

     

                   “Information Memorandum” means the Confidential Information
Memorandum dated May 2010 relating to the Company. 

     

                   “Initial Borrowings” has the meaning set forth in Section
2.08(d)(iii). 

     

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

     

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

     

                   “Interest Period” means, with respect to any LIBOR Borrowing
or EURIBOR Borrowing, the period commencing on the date of such Borrowing and
ending on the numerically corresponding day in the calendar month that is one,
two, three or six months (or, with consent of each Lender, nine or 12 months)
thereafter, as the Company may elect; provided that (a) if any Interest Period would end on
a day other than a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless such next succeeding Business Day would fall
in the next calendar month, in which case such Interest Period shall end on the
next preceding Business Day and (b) any Interest Period that commences on the
last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the last calendar month of such Interest
Period) shall end on the last Business Day of the last calendar month of such
Interest Period. For purposes hereof, the date of a Borrowing initially shall be
the date on which such Borrowing is made and thereafter shall be the effective
date of the most recent conversion or continuation of such Borrowing.

     

                   “Investment” means, as to any Person, any direct or
indirect acquisition or investment by such Person, whether by means of (a) the
purchase or other acquisition of capital stock or other securities of another
Person, (b) a loan, advance or capital contribution to, or assumption of debt of
or purchase or other acquisition of any other debt or equity participation or
interest in, another Person, including any partnership or joint venture interest in such other Person or
(c) the purchase or other acquisition (in one transaction or a series of
transactions) of assets of another Person that constitute a business unit. For
purposes of covenant compliance, the amount of any Investment shall be the
amount actually invested, without adjustment for subsequent increases or
decreases in the value of such Investment. 

     

    

    
    

    18 

     

                   “IRS” means the United States Internal Revenue
Service. 

     

                   “Issuing Bank” means JPMCB, in its capacity as the issuer
of Letters of Credit hereunder, and its successors in such capacity as provided
in Section 2.05(i) and, in respect of the Existing Letters of Credit only, the
issuers of such Existing Letters of Credit, as set forth in Schedule 2.05. The Issuing Bank may, in its discretion,
arrange for one or more Letters of Credit to be issued by Affiliates of the
Issuing Bank, in which case the term “Issuing Bank” shall include any such Affiliate with
respect to Letters of Credit issued by such Affiliate. 

     

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

     

                   “Judgment Currency” has the meaning assigned to such term in
Section 9.14(b).

     

                   “LC Collateral Account” has the meaning set forth in Section
2.05(j). 

     

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

     

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

     

                   “LC Sublimit” means $50,000,000. 

     

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

     

                   “Lending Office” means, with respect to any Lender, the
office(s) of such Lender (or an Affiliate of such Lender) specified as its
“Lending Office(s)” on Schedule 2.01 or, as to any Person that becomes a Lender
after the date hereof, in the Assignment and Assumption executed by such Person,
or such other office(s) of such Lender (or an Affiliate of such Lender) as such
Lender may hereafter designate from time to time as its “Lending Office(s)” by
notice to the Company and the Facility Agent. A Lender may designate different Lending Offices for Loans denominated in
different currencies. 

     

    

    
    

    19 

     

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

     

                   “Letter of Credit Extension” means, with respect to any Letter of Credit,
the issuance thereof or extension of the expiry date thereof, or the increase of
the amount thereof. 

     

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

     

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

     

                   “Lien” means any mortgage, pledge, hypothecation,
assignment (including an assignment to provide security), deposit arrangement,
encumbrance, lien (statutory or other), charge, or preference, priority or other
security interest or preferential arrangement in the nature of a security
interest of any kind or nature whatsoever (including any conditional sale or
other title retention agreement, any easement, right of way or other encumbrance
on title to real property, and any financing lease having substantially the same
economic effect as any of the foregoing); provided that in no event shall a Sale-Leaseback
Transaction be considered a Lien. 

     

                   “Loan Documents” means this Agreement and each promissory
note delivered pursuant to this Agreement. 

     

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

     

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

     

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

     

                   “Long-Term Indebtedness” means any Indebtedness that, in accordance
with GAAP, constitutes (or, when incurred, constituted) a long-term
liability.

     

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

     

    

    
    

    20 

     

                   “Material Adverse Effect” means (a) a material adverse change in, or a
material adverse effect upon, the business, results of operations, properties,
assets or financial condition of the Company and the Subsidiaries, taken as a
whole, (b) a material impairment of the ability of the Company to perform its
obligations under any Loan Document to which it is a party or (c) a material
adverse effect upon the legality, validity, binding effect or enforceability
against the Company of any Loan Document to which it is a party. 

     

                   “Maturity Date” means July 13, 2015. 

     

                   “Maximum Rate” has the meaning set forth in Section 9.13.

     

                   “Moody’s” means Moody’s Investors Service, Inc., and
its successors. 

     

                   “Multiemployer Plan” means any employee benefit plan of the type
described in Section 4001(a)(3) of ERISA, to which the Company or any ERISA
Affiliate makes or is obligated to make contributions, or during the preceding
five plan years, has made or been obligated to make contributions.

     

                   “New Notes” means the $375 million of the Company’s
5.00% Senior Notes due 2020 issued by the Company pursuant to the New Notes
Indenture. 

     

                   “New Notes Indenture” means the Indenture dated as of June 15,
2010, by and among the Company and The Bank of New York Mellon, as Trustee,
together with the Company Order dated as of June 18, 2010, issued in connection
with the New Notes and executed by the chief financial officer of the
Company.

     

                   “New Notes Trustee” means, at any time, the trustee under the
New Notes Indenture at such time. 

     

                   “Non-U.S. Lender” means a Lender that is not a U.S. Person.

     

                   “Obligations” means all advances to, and debts,
liabilities, obligations, covenants and duties of, the Company arising under any
Loan Document or otherwise with respect to any Loan or Letter of Credit, whether
direct or indirect (including those acquired by assumption), absolute or
contingent, due or to become due, now existing or hereafter arising and
including interest and fees that accrue after the commencement by or against the
Company or any Affiliate thereof of any proceeding under any bankruptcy,
insolvency or other debtor relief laws naming such Person as the debtor in such
proceeding, regardless of whether such interest and fees are allowed claims in
such proceeding. 

     

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

     

    

    
    

    21 

     

                   “Other Taxes” means any present or future stamp, court,
documentary, excise, property, intangible, recording, filing or similar Taxes
that arise from any payment made under, from the execution, delivery,
performance, enforcement or registration of, or from the registration, receipt
or perfection of a security interest under, or otherwise with respect to, this
Agreement, except any such Taxes imposed with respect to an assignment or
participation. 

     

                   “Outstanding Amount” means (i) with respect to Loans and
Swingline Loans on any date, the aggregate outstanding principal amount thereof
after giving effect to any borrowings and prepayments or repayments of Loans and
Swingline Loans, as the case may be, occurring on such date; and (ii) with
respect to any LC Exposure on any date, the amount of such LC Exposure on such
date after giving effect to any Letter of Credit Extension occurring on such
date and any other changes in the aggregate amount of the LC Exposure as of such
date, including as a result of any reimbursements by the Company of Unreimbursed
Amounts. 

     

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

     

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

     

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

     

                   “Pension Plan” means any “employee pension benefit plan”
(as such term is defined in Section 3(2) of ERISA), other than a Multiemployer
Plan, that is subject to Title IV of ERISA and is sponsored or maintained by the
Company or any ERISA Affiliate or to which the Company or any ERISA Affiliate
contributes or has an obligation to contribute, or in the case of a multiple
employer or other plan described in Section 4064(a) of ERISA, has made
contributions at any time during the immediately preceding five plan years.

     

    

    
    

    22

     

                   “Permitted Acquisition” means an
acquisition (whether pursuant to an acquisition of Equity Interests, assets or
otherwise) by the Company or any of the Subsidiaries from any Person or Persons
of a business that is substantially similar (a) to any line of business
conducted by the Company and/or the Subsidiaries on the date hereof or (b) to
any business substantially related to or incidental to those lines of business
conducted by the Company and/or the Subsidiaries on the date hereof and in which
the following conditions are satisfied: (i) the acquisition shall have been
approved by the board of directors or other appropriate governing body of the
Person whose business is to be acquired; (ii) immediately before and after
giving effect to such acquisition, no Default shall have occurred and be
continuing or would result therefrom; (iii) if the acquisition is of Equity
Interests of a Person, such Person becomes a Subsidiary; (iv) after giving pro
forma effect (in a manner satisfactory to the Facility Agent) to the
consummation of such acquisition and the incurrence of any Indebtedness in
connection with such acquisition, the Consolidated Leverage Ratio shall not
exceed 3.00 to 1.00; and (c) the Company shall have delivered to the Facility
Agent a Compliance Certificate for the period of four full fiscal quarters
immediately preceding such acquisition for which financial statements have been
delivered pursuant to the terms hereof (prepared in good faith and in a manner
and using a methodology which is consistent with the most recent financial
statements delivered pursuant to Section 5.01 or, prior to the delivery of any
such financial statements, the financial statements referred to in Section 3.05)
giving pro forma effect to the consummation of such acquisition and the
incurrence of any Indebtedness in connection with such acquisition and
evidencing compliance with the covenants set forth in Section 6.11; provided that the conditions set forth in clause (c)
above shall not apply to any such acquisition the aggregate consideration paid
for which, together with the aggregate consideration paid for any other such
acquisition consummated during the twelve months preceding such acquisition
(disregarding the aggregate consideration paid for any acquisitions consummated
prior to the Effective Date) in reliance on Section 6.02(d) (including, in each
case, Indebtedness assumed in connection therewith, all obligations in respect
of deferred purchase price (including obligations under any purchase price
adjustment but excluding earnout or similar payments) and all other
consideration payable in connection therewith (including payment obligations in
respect of non-competition agreements or other arrangements representing
acquisition consideration)) does not exceed
$50,000,000.

     

                   “Permitted Lien” has the meaning set forth in Section
6.01.

     

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

     

                   “Plan” means any “employee benefit plan” (as such
term is defined in Section 3(3) of ERISA) established by the Company or, with
respect to any such plan that is subject to Section 412 of the Code or Title IV
of ERISA, any ERISA Affiliate.

     

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

     

                   “Priority Indebtedness” means the sum, without duplication, for the
Company and the Subsidiaries, of (a) all Indebtedness secured by any Lien on any
assets of the Company or any Subsidiary, (b) all Indebtedness referred to in
clauses (f) and (i) of the definition of “Indebtedness”, (c) all Indebtedness of
the Subsidiaries (other than Indebtedness owed to the Company or another
Subsidiary) and (d) all Sale-Leaseback Transactions; provided, that Priority Indebtedness shall not include
(i) Cash Pool Obligations under any Cash Pool Arrangement to the extent, and for
so long as, such obligations do not exceed the Cash Pool Availability under such
Cash Pool Arrangement, (ii) any Indebtedness under arrangements for factoring of
foreign receivables to the extent the aggregate uncollected amount of the
receivables transferred pursuant to such arrangements does not exceed
$50,000,000, and (iii) contingent obligations under undrawn letters of credit,
bank guarantees, surety bonds and similar instruments supporting trade payables, workers’
compensation and similar obligations and other non-financial obligations.

     

    

    
    

    23 

     

                   “Public Lender” has the meaning set forth in Section
5.02.

     

                   “Quotation Day” means (a) with respect to any currency
(other than Sterling) for any Interest Period, two Business Days prior to the
first day of such Interest Period and (b) with respect to Sterling for any
Interest Period, the first day of such Interest Period, in each case unless
market practice differs in the Relevant Interbank Market for any currency, in
which case the Quotation Day for such currency shall be determined by the
Applicable Agent in accordance with market practice in the Relevant Interbank
Market (and if quotations would normally be given by leading banks in the
Relevant Interbank Market on more than one day, the Quotation Day shall be the
last of those days).

     

                   “Recipient” means, as applicable, (i) any Agent (ii) any
Lender, (iii) the Issuing Bank and (iv) solely for U.S. Federal withholding tax
purposes, any Beneficial Owner. 

     

                   “Reference Banks” means with respect to the LIBO Rate or the
EURIBO Rate, the principal London offices of J.P. Morgan Europe Limited and Bank
of America, N.A., or such other banks as may be appointed by the Facility Agent
in consultation with the Company.

     

                   “Refinancing Notes” means any bonds, notes or other debt
instruments of the Company issued and sold for the purpose of refinancing the
New Notes. 

     

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

     

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

     

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

     

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

     

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

     

                   “Responsible Officer” means the chief executive officer,
president, chief financial officer, treasurer, vice president of finance,
controller, director of treasury operations, secretary or general counsel of the
Company or any other person authorized by the Board of Directors of the Company
to sign Loan Documents on its behalf. Any document delivered hereunder that is
signed by a Responsible Officer of the Company shall be conclusively presumed to
have been authorized by all necessary corporate, partnership and/or other action
on the part of the Company and such Responsible Officer shall be conclusively
presumed to have acted on behalf of the Company. 

     

    

    
    

    24 

     

                   “Restricted Payment” has the meaning set forth in Section 6.06.

     

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

     

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

     

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

     

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

     

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

     

                   “SEC” means the Securities and Exchange
Commission. 

     

                   “Securitization Transaction” means any transfer by the Company or any
Subsidiary of accounts receivable or interests therein (a) to a trust,
partnership, corporation or other entity, which transfer is funded in whole or
in part, directly or indirectly, by the incurrence or issuance by the transferee
or any successor transferee of Indebtedness, fractional undivided interests or securities that are to
receive payments from, or that represent interests in, the cash flow derived
from such accounts receivable or interests or (b) directly to one or more
investors or other purchasers (other than any sale of delinquent or doubtful
accounts for collection and not as part of a financing transaction). The amount
of any Securitization Transaction shall be deemed at any time to be the
aggregate principal or stated amount of the Indebtedness, fractional undivided
interests or other securities referred to in the preceding sentence or, if there
shall be no such principal or stated amount, the uncollected amount of the
accounts receivable transferred pursuant to such Securitization Transaction net
of any such accounts receivable that have been written off as uncollectible.

     

    

    
    

    25 

     

                   “Solvent” shall mean with respect to any Person as of
the date of determination thereof that (a) the amount of the “present fair
saleable value” of the assets of such Person will, as of such date, exceed the
amount of all “liabilities of such Person, contingent or otherwise,” as of such
date, as such quoted terms are determined in accordance with applicable Federal
and state laws governing determinations of the insolvency of debtors, (b) the
present fair saleable value of the assets of such Person will, as of such date,
be greater than the amount that will be required on its debts as such debts
become absolute and matured, (c) such Person will not have as of such date, an
unreasonably small amount of capital with which to conduct its business and (d)
such Person will be able to pay its debts as they mature in each case after
giving effect to any right of indemnification and contribution of such Person
from or to any Affiliate. 

     

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

     

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

     

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

     

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

     

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

     

    

    
    

    26 

     

                   “Subsidiary” means any direct or indirect subsidiary of
the Company. 

     

                   “Swap Contract” means (a) any rate swap transaction, basis
swap, credit derivative transaction, forward rate transaction, commodity swap,
commodity option, forward commodity contract, equity or equity index swap or
option, bond or bond price or bond index swap or option or forward bond or
forward bond price or forward bond index transaction, interest rate option,
forward foreign exchange transaction, cap transaction, floor transaction, collar
transaction, currency swap transaction, cross-currency rate swap transaction,
currency option, spot contract, or any other similar transaction or any
combination of any of the foregoing (including any option to enter into any of
the foregoing), whether or not any such transaction is governed by or subject to
any master agreement and (b) any and all transactions of any kind, and the
related confirmations, which are subject to the terms and conditions of, or
governed by, any form of master agreement published by the International Swaps
and Derivatives Association, Inc., any International Foreign Exchange Master
Agreement, or any other master agreement (any such master agreement, together
with any related schedules, a “Master Agreement”), including any such obligations or
liabilities under any Master Agreement. The amount of any net obligation under
any Swap Contract on any date shall be deemed to be the Swap Termination Value
thereof as of such date. 

     

                   “Swap Termination Value” means, in respect of any one or more Swap
Contracts, after taking into account the effect of any legally enforceable
netting agreement relating to such Swap Contracts, (a) for any date on or after
the date such Swap Contracts have been closed out and termination value(s)
determined in accordance therewith, such termination value(s) and (b) for any
date prior to the date referenced in clause (a), the amount(s) determined as the
mark-to-market value(s) for such Swap Contracts, as determined based upon one or
more mid-market or other readily available quotations provided by any recognized
dealer in such Swap Contracts (which may include a Lender or any Affiliate of a
Lender). 

     

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

     

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

     

                   “Swingline Loan” means a Loan made pursuant to Section
2.04.

     

    

    
    

    27 

     

                   “Swiss Franc” or the sign “CHF” means the lawful currency of
Switzerland.

     

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

     

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

     

                   “Threshold Amount” means $25,000,000. 

     

                   “Transactions” means the execution, delivery and
performance by the Company of the Loan Documents, the borrowing of Loans and the
issuance of Letters of Credit hereunder. 

     

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

     

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

     

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

     

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

     

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

     

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

     

                   “U.S. Tax Certificate” has the meaning assigned to such term in
Section 2.16(f)(ii)(D)(2). 

     

                   “Withholding Agent” means the Company, the Facility Agent, the
London Agent or any other entity that is deemed to be a withholding agent for
U.S. Federal income tax purposes. 

     

    

    
    

    28 

     

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

     

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

     

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

     

                   SECTION 1.03. Terms Generally.
The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words “include”, “includes” and “including” shall
be deemed to be followed by the phrase “without limitation”. The word “will”
shall be construed to have the same meaning and effect as the word “shall”.
Unless the context requires otherwise (a) any definition of or reference to any
agreement, instrument, other document or statute herein shall be construed as
referring to such agreement, instrument, other document or statute as from time
to time amended, supplemented or otherwise modified (subject to any restrictions
on such amendments, supplements or modifications set forth herein), (b) any
reference herein to any Person shall be construed to include such Person’s
successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and
words of similar import, shall be construed to refer to this Agreement in its
entirety and not to any particular provision hereof, (d) all references herein
to Articles, Sections, Exhibits and Schedules shall be construed to refer to
Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e)
each capitalized term used but not defined in any Schedule to this Agreement
shall have the meaning assigned to such term in this Agreement and (f) the words
“asset” and “property” shall be construed to have the same meaning and effect
and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights. 

     

                   SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly provided
herein, all terms of an accounting or financial nature shall be construed in
accordance with GAAP, as in effect from time to time; provided, that (i) if the Company notifies the
Facility Agent that the Company requests an amendment to any provision hereof to
eliminate the effect of any change occurring after the date hereof in GAAP or in
the application thereof on the operation of such provision (or if the Facility
Agent notifies the Company that the Required Lenders request an amendment to any
provision hereof for such purpose), regardless of whether any such notice is
given before or after such change in GAAP or in the application thereof, then
the Company, the Lenders and the Agents shall negotiate in good faith to amend
such provision and such provision shall be interpreted on the basis of GAAP as
in effect and applied immediately before such change shall have become effective
until such notice shall have been withdrawn or such provision shall have been
amended in accordance herewith and (ii) notwithstanding any other provision contained herein, all terms of an
accounting or financial nature used herein shall be construed, and all
computations of amounts and ratios referred to herein shall be made, without
giving effect to any election under Accounting Standards Codification 825-10, or
any successor thereto, to value any Indebtedness of the Company or any
Subsidiary at “fair value”, as defined therein. In addition, if the Company
notifies the Facility Agent that the Company proposes to change the accounting
principles used by the Company for the preparation of its financial statements
from GAAP to IFRS, then the Company, the Lenders and the Agents agree to
negotiate in good faith to amend the relevant provisions of this Agreement,
including the financial covenants and the financial reporting requirements, to
reflect such change and to preserve the intent of this Agreement as in effect
prior to such change.

     

    

    
    

    29 

     

                   SECTION 1.05. Currency Translation. (a) For purposes of any determination
under Section 6.01, 6.02 or 6.03, under paragraph (e) or (h) of Section 7.01 or
under any other provision of this Agreement expressly requiring the use of a
current exchange rate, all amounts incurred, outstanding or proposed to be
incurred or outstanding in currencies other than US Dollars shall be translated
into US Dollars at currency exchange rates in effect on the date of such
determination; provided that no Default or Event of Default shall
arise as a result of any limitation set forth in US Dollars in Section 6.01,
6.02 or 6.03 being exceeded solely as a result of changes in currency exchange
rates from those rates applicable at the time or times any transactions were
initially consummated in reliance on the exceptions under such Sections. For
purposes of any determination under Section 6.05, the amount of each Disposition
or other applicable transaction denominated in a currency other than US Dollars
shall be translated into US Dollars at the applicable currency exchange rate in
effect on the date such Disposition or other transaction is consummated. Such
currency exchange rates shall be determined in good faith by the Company. For
purposes of Section 6.11, amounts in currencies other than US Dollars shall be
translated into US Dollars at the currency exchange rates used in preparing the
Company’s annual and quarterly financial statements. 

     

                   (b) The Facility Agent shall (A) determine the
US Dollar Equivalent of any Borrowing denominated in an Alternative Currency as
of the date of the commencement of the initial Interest Period therefor and as
of the date of the commencement of each subsequent Interest Period therefor, in
each case using the Exchange Rate for the applicable currency in relation to US
Dollars in effect on the date that is three Business Days prior to the date on
which the applicable Interest Period shall commence, and each such amount shall
be the US Dollar Equivalent of such Borrowing until the next required
calculation thereof pursuant to this paragraph and (B) notify the Company and
the Lenders of each calculation of the US Dollar Equivalent of each Borrowing.
The Facility Agent shall determine the US Dollar Equivalent of any Letter of
Credit denominated in an Alternative Currency as of the date such Letter of
Credit is issued, amended to increase its face amount, extended or renewed and
as of the last Business Day of each subsequent calendar quarter, and such amount
shall be the US Dollar Equivalent of such Letter of Credit until the next
required calculation thereof pursuant to this sentence. 

     

    

    
    

    30 

     

    ARTICLE II

     

    The Credits 

     

                   SECTION 2.01. Commitments. Subject to the terms and conditions set forth herein,
each Lender agrees to make Revolving Loans denominated in US Dollars or
Alternative Currencies to the Company from time to time during the Availability
Period in an aggregate principal amount at any time outstanding that will not
result in (i) the aggregate Revolving Exposures exceeding the aggregate
Commitments, (ii) the aggregate Foreign Currency Exposures exceeding the Foreign
Currency Sublimit or (iii) the Revolving Exposure of any Lender exceeding its
Commitment. Within the foregoing limits and subject to the terms and conditions
set forth herein, the Company may borrow, prepay and reborrow Revolving Loans.

     

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

     

                   (b) Subject to Section 2.13, (i) each
Revolving Borrowing denominated in US Dollars shall be comprised entirely of
LIBOR Loans or ABR Loans, (ii) each Revolving Borrowing denominated in an
Alternative Currency (other than Euros) shall be comprised entirely of LIBOR
Loans and (iii) each Revolving Borrowing denominated in Euros shall be comprised
entirely of EURIBOR Loans. Each Swingline Loan shall be an ABR Loan. Each Lender
at its option may make any Loan by causing any domestic or foreign branch or
Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not
affect the obligation of the Company to repay such Loan in accordance with the
terms of this Agreement. 

     

                   (c) At the commencement of each Interest
Period for any LIBOR Revolving Borrowing or EURIBOR Revolving Borrowing, such
Borrowing shall be in an aggregate amount that is an integral multiple of the
Borrowing Multiple and not less than the Borrowing Minimum. At the time that
each ABR Revolving Borrowing is made, such Borrowing shall be in an aggregate
amount that is an integral multiple of US$100,000 and not less than US$500,000;
provided that an ABR Revolving Borrowing may be in an
aggregate amount that is equal to the entire unused balance of the Commitments
or that is required to finance the reimbursement of an LC Disbursement as
contemplated by Section 2.05(e). Each Swingline Loan shall be in an amount that
is an integral multiple of US$100,000 and not less than US$100,000. Borrowings
of more than one Type may be outstanding at the same time; provided that there shall not at any time be more than
a total of ten LIBOR Revolving Borrowings and EURIBOR Revolving Borrowings
outstanding.

     

                   (d) Notwithstanding any other provision of
this Agreement, the Company shall not be entitled to request, or to elect to
convert or continue, any Borrowing if the Interest Period requested with respect
thereto would end after the Maturity Date. 

     

    

    
    

    31 

     

                   SECTION 2.03. Requests for Borrowings. To request a Borrowing, the Company
shall notify the Applicable Agent of such request by facsimile of a written
Borrowing Request in the form of Exhibit D or any other form approved by the Applicable
Agent and signed by a Responsible Officer of the Company (or, in the case of the
Facility Agent, by telephone confirmed promptly by hand delivery or facsimile to
the Facility Agent of a written Borrowing Request in the form of Exhibit D or any other form approved by the Facility
Agent and signed by a Responsible Officer of the Company) (a) in the case of a
LIBOR Borrowing denominated in US Dollars, not later than 11:00 a.m., Local
Time, three Business Days before the date of the proposed Borrowing, (b) in the
case of a LIBOR Borrowing denominated in an Alternative Currency or a EURIBOR
Borrowing, not later than 11:00 a.m., Local Time, four Business Days before the
date of the proposed Borrowing and (c) in the case of an ABR Borrowing, not
later than 11:00 a.m., Local Time, on the date of the proposed Borrowing. Each
such telephonic and written Borrowing Request shall specify the following
information in compliance with Section 2.02: 

     

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

     

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

     

         (iii) the Type of such Borrowing;

     

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

     

         (v) the Applicable Funding Account. 

     

    If no currency is
specified with respect to any requested LIBOR Borrowing, then the Company shall
be deemed to have selected US Dollars. If no election as to the Type of
Borrowing is specified, then the requested Borrowing shall be (A) in the case of
a Borrowing denominated in US Dollars, an ABR Borrowing, (B) in the case of
Borrowing denominated in an Alternative Currency (other than Euros), a LIBOR
Borrowing and (C) in the case of a Borrowing denominated in Euros, a EURIBOR
Borrowing. If no Interest Period is specified with respect to any requested
LIBOR Borrowing or EURIBOR Borrowing, then the Company shall be deemed to have
selected an Interest Period of one month’s duration. Promptly following receipt
of a Borrowing Request in accordance with this Section, the Applicable Agent
shall advise each Lender of the details thereof and of the amount of such
Lender’s Loan to be made as part of the requested Borrowing. 

     

                   SECTION 2.04. Swingline Loans.
(a) Subject to the terms and conditions set
forth herein, the Swingline Lender agrees to make Swingline Loans denominated in
US Dollars to the Company, from time to time during the Availability Period, in
an aggregate principal amount at any time
outstanding that will not result in (i) the aggregate principal amount of
outstanding Swingline Loans exceeding US$25,000,000, (ii) the aggregate amount
of the Revolving Exposures exceeding the aggregate amount of the Commitments or
(iii) the Revolving Exposure of any Lender exceeding its Commitment;
provided that the Swingline Lender shall not be required to
make a Swingline Loan to refinance an outstanding Swingline Loan. Within the
foregoing limits and subject to the terms and conditions set forth herein, the
Company may borrow, prepay and reborrow Swingline Loans.

     

    

    
    

    32 

     

                   (b) To request a Swingline Loan, the Company
shall notify the Facility Agent of such request by telephone (confirmed by
facsimile signed by a Responsible Officer of the Company), not later than 12:00
noon, New York City time, on the day of a proposed Swingline Loan. Each such
notice shall be irrevocable and shall specify the requested date (which shall be
a Business Day) and amount of the requested Swingline Loan. The Facility Agent
will promptly advise the Swingline Lender of any such notice received from the Company. The
Swingline Lender shall make each Swingline Loan available to the Company by
means of a credit to the Applicable Funding Account (or, in the case of a
Swingline Loan made to finance the reimbursement of an LC Disbursement as
provided in Section 2.05(e), by remittance to the Issuing Bank) by 3:00 p.m.,
New York City time, on the requested date of such Swingline
Loan. 

     

                   (c) The Swingline Lender may by written notice
given to the Facility Agent not later than 10:00 a.m., New York City time, on
any Business Day require the Lenders to acquire participations on such Business
Day in all or a portion of the Swingline Loans outstanding. Such notice shall
specify the aggregate amount of Swingline Loans in which the Lenders will
participate. Promptly upon receipt of such notice, the Facility Agent will give
notice thereof to each Lender, specifying in such notice such Lender’s
Applicable Percentage of such Swingline Loan or Loans. Each Lender hereby
absolutely and unconditionally agrees, upon receipt of notice as provided above,
to pay to the Facility Agent, for the account of the Swingline Lender, such
Lender’s Applicable Percentage of such Swingline Loan or Loans. Each Lender
acknowledges and agrees that its obligation to acquire participations in
Swingline Loans pursuant to this paragraph is absolute and unconditional and
shall not be affected by any circumstance whatsoever, including the occurrence
and continuance of a Default or reduction or termination of the Commitments, and
that each such payment shall be made without any offset, abatement, withholding
or reduction whatsoever. Each Lender shall comply with its obligation under this
paragraph by wire transfer of immediately available funds, in the same manner as
provided in Section 2.06 with respect to Loans made by such Lender (and Section
2.06 shall apply, mutatis mutandis, to the payment obligations of the Lenders),
and the Facility Agent shall promptly pay to the Swingline Lender the amounts so
received by it from the Lenders. The Facility Agent shall notify the Company of
any participations in any Swingline Loan acquired pursuant to this paragraph,
and thereafter payments in respect of such Swingline Loan shall be made to the
Facility Agent and not to the Swingline Lender. Any amounts received by the
Swingline Lender from the Company
(or other party on behalf of the Company) in respect of a Swingline Loan after receipt by the Swingline Lender of the
proceeds of a sale of participations therein shall be promptly remitted to the
Facility Agent; any such amounts received by the Facility Agent shall be
promptly remitted by the Facility Agent to the Lenders that shall have made
their payments pursuant to this paragraph and to the Swingline Lender, as their
interests may appear; provided that any such payment so remitted shall be
repaid to the Swingline Lender or to the Facility Agent, as applicable, if and
to the extent such payment is required to be refunded to the Company for any
reason. The purchase of participations in a Swingline Loan pursuant to this
paragraph shall not relieve the Company of any default in the payment thereof.

     

    

    
    

    33 

     

                   SECTION 2.05. Letters of Credit.
(a) General. Subject to the terms and conditions set forth herein,
the Company may request the issuance of Letters of Credit (or the amendment,
renewal or extension of an outstanding Letter of Credit) denominated in US
Dollars or in any Alternative Currency for its own account, in a form reasonably
acceptable to the Facility Agent and the Issuing Bank, at any time and from time
to time during the Availability Period. In the event of any inconsistency
between the terms and conditions of this Agreement and the terms and conditions
of any form of letter of credit application or other agreement submitted by the
Company to, or entered into by the Company with, the Issuing Bank relating to
any Letter of Credit, the terms and conditions of this Agreement shall control.
From and after the Effective Date, each Existing Letter of Credit, as set forth
in Schedule 2.05, shall be deemed to be a Letter of Credit for
all purposes hereof and shall be deemed to have been issued hereunder on the
Effective Date. Any Lender that issued an Existing Letter of Credit shall have
the rights of an Issuing Bank as to such Letter of Credit for purposes of this
Section 2.05. 

     

                   (b) Notice of Issuance, Amendment, Renewal,
Extension; Certain Conditions. To request the issuance of a Letter of Credit (or the
amendment, renewal or extension of an outstanding Letter of Credit), the Company
shall hand deliver or facsimile (or transmit by electronic communication, if
arrangements for doing so have been approved by the Issuing Bank) to the Issuing
Bank and the Facility Agent (reasonably in advance of the requested date of
issuance, amendment, renewal or extension) a notice signed by a Responsible
Officer of the Company requesting the issuance of a Letter of Credit, or
identifying the Letter of Credit to be amended, renewed or extended, and
specifying the date of issuance, amendment, renewal or extension (which shall be
a Business Day), the date on which such Letter of Credit is to expire (which
shall comply with paragraph (c) of this Section), the currency and amount of
such Letter of Credit, the name and address of the beneficiary thereof and such
other information as shall be necessary to prepare, amend, renew or extend such
Letter of Credit. If requested by the Issuing Bank, the Company also shall
submit a letter of credit application on the Issuing Bank’s standard form in
connection with any request for a Letter of Credit. A Letter of Credit shall be
issued, amended, renewed or extended only if (and upon issuance, amendment,
renewal or extension of each Letter of Credit the Company shall be deemed to
represent and warrant that), after giving effect to such issuance, amendment,
renewal or extension (i) the LC Exposure shall not exceed the LC Sublimit, (ii)
the aggregate amount of the Revolving Exposures shall not exceed the aggregate
amount of the Commitments, (iii) the aggregate amount of the Foreign Currency
Exposures shall not exceed the Foreign Currency
Sublimit and (iv) the Revolving Exposure of each Lender shall not exceed such
Lender’s Commitment. 

     

    

    
    

    34 

     

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

     

                   (d) Participations.
By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) and without any
further action on the part of the Issuing Bank or the Lenders, the Issuing Bank
hereby grants to each Lender, and each Lender hereby acquires from the Issuing
Bank, a participation in such Letter of Credit equal to such Lender’s Applicable
Percentage of the aggregate amount available to be drawn under such Letter of
Credit. In consideration and in furtherance of the foregoing, each Lender hereby
absolutely and unconditionally agrees to pay to the Facility Agent, for the
account of the Issuing Bank, such Lender’s Applicable Percentage of each LC
Disbursement made by the Issuing Bank and not reimbursed by the Company on the
date due as provided in paragraph (e) of this Section, or of any reimbursement
payment required to be refunded to the Company for any reason, each such payment
to be made in the currency of such LC Disbursement. Each Lender acknowledges and
agrees that its obligation to acquire participations pursuant to this paragraph
in respect of Letters of Credit is absolute and unconditional and shall not be
affected by any circumstance whatsoever, including any amendment, renewal or
extension of any Letter of Credit or the occurrence and continuance of a Default
or reduction or termination of the Commitments, and that each such payment shall
be made without any offset, abatement, withholding or reduction whatsoever. On
the Effective Date and without any further action by any party hereto, each
Issuing Bank that has issued an Existing Letter of Credit shall be deemed to
have granted to each Lender, and each Lender shall be deemed to have acquired
from such Issuing Bank, a participation in each such Existing Letter of Credit
in accordance with the foregoing provisions of this paragraph (d).

     

    

    
    

    35 

     

                   (e)
Reimbursement. If the
Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the Company shall
reimburse such LC Disbursement by paying to the Facility Agent an amount equal
to such LC Disbursement in the
currency of such LC Disbursement not later than 12:00 noon, New York City time,
on the date that such LC Disbursement is made, if the Company shall have
received notice of such LC Disbursement prior to 10:00 a.m., New York City time,
on such date, or, if such notice has not been received by the Company prior to
such time on such date, then not later than 12:00 noon, New York City time, on
(i) the Business Day that the Company receives such notice, if such notice is
received prior to 10:00 a.m., New York City time, on the day of receipt
or (ii) the Business Day immediately following the day that the Company receives
such notice, if such notice is not received prior to such time on the day of
receipt; provided that if the Maturity Date shall not have
occurred, the Company may, subject to the conditions to borrowing set forth
herein, request in accordance with Section 2.03 or 2.04 that any LC Disbursement
be financed with an ABR Revolving Borrowing or Swingline Loan (in each case, if
such LC Disbursement is not less than US$500,000) in an equivalent amount if
such LC Disbursement is denominated in US Dollars and otherwise in an amount
determined by the Issuing Bank that will be sufficient, when converted to the
currency of such LC Disbursement, to reimburse the Issuing Bank for such LC
Disbursement, and to the extent so financed, the Company’s obligation to make
such payment shall be discharged and replaced by the resulting ABR Revolving
Borrowing or Swingline Loan. If the Company fails to make such payment when due,
the Facility Agent shall notify each Lender of the applicable LC Disbursement,
the amount and currency of the payment then due from the Company in respect
thereof (the “Unreimbursed Amount”) and such Lender’s Applicable Percentage
thereof. Promptly following receipt of such notice, each Lender shall pay to the
Facility Agent its Applicable Percentage of the Unreimbursed Amount, in the
currency of such LC Disbursement and in the same manner as provided in Section
2.06 with respect to Loans made by such Lender (and Section 2.06 shall apply,
mutatis mutandis, to the payment obligations of the Lenders),
and the Facility Agent shall promptly pay to the Issuing Bank the amounts so
received by it from the Lenders. Promptly following receipt by the Facility
Agent of any payment from the Company pursuant to this paragraph, the Facility
Agent shall distribute such payment to the Issuing Bank or, to the extent that
Lenders have made payments pursuant to this paragraph to reimburse the Issuing
Bank, then to such Lenders and the Issuing Bank as their interests may appear.
Any payment made by a Lender pursuant to this paragraph to reimburse the Issuing
Bank for any LC Disbursement (other than the funding of ABR Revolving Loans or a
Swingline Loan as contemplated above) shall not constitute a Loan and shall not
relieve the Company of its obligation to reimburse such LC Disbursement.

     

                   (f) Obligations Absolute. The Company’s obligation to reimburse
LC Disbursements as provided in paragraph (e) of this Section shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement under any and all circumstances whatsoever and
irrespective of (i) any lack of validity or enforceability of any Letter of
Credit, this Agreement or any other Loan Document, or any term or provision
therein, (ii) any draft or other document presented under a Letter of Credit
proving to be forged, fraudulent or invalid in any respect or any statement
therein being untrue or inaccurate in any respect, (iii) payment by the Issuing
Bank under a Letter of Credit against presentation of a draft or other document
that does not comply with the terms of such Letter of Credit or (iv) any other
event or circumstance whatsoever, whether or not similar to any of the
foregoing, that might, but for the provisions of this Section, constitute a
legal or equitable discharge of, or provide a right of setoff against, the
Company’s obligations hereunder. None of the Facility Agent, the Lenders or the
Issuing Bank, or any of their Related Parties, shall have any liability or
responsibility by reason of or in connection with the issuance or transfer of
any Letter of Credit or any payment or failure
to make any payment thereunder (irrespective of any of the circumstances
referred to in the preceding sentence), or any error, omission, interruption,
loss or delay in transmission or delivery of any draft, notice or other
communication under or relating to any Letter of Credit (including any document
required to make a drawing thereunder), any error in interpretation of technical
terms or any consequence arising from causes beyond the control of the Issuing
Bank; provided that the foregoing shall not be construed to excuse
the Issuing Bank from liability to the Company to the extent of any direct
damages (as opposed to consequential damages, claims in respect of which are
hereby waived by the Company to the extent permitted by applicable law) suffered
by the Company that are caused by the Issuing Bank’s failure to exercise care
when determining whether drafts and other documents presented under a Letter of
Credit comply with the terms thereof. The parties hereto expressly agree that,
in the absence of gross negligence or wilful misconduct on the part of the
Issuing Bank (as finally determined by a court of competent jurisdiction), the
Issuing Bank shall be deemed to have exercised care in each such determination.
In furtherance of the foregoing and without limiting the generality thereof, the
parties agree that, with respect to documents presented which appear on their
face to be in substantial compliance with the terms of a Letter of Credit, the
Issuing Bank may, in its sole discretion, either accept and make payment upon
such documents without responsibility for further investigation, regardless of
any notice or information to the contrary, or refuse to accept and make payment
upon such documents if such documents are not in strict compliance with the
terms of such Letter of Credit. 

     

    

    
    

    36 

     

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

     

                   (h) Interim Interest.
If the Issuing Bank shall make any LC
Disbursement, then, unless the Company shall reimburse such LC Disbursement in
full by 12:00 noon, New York City time, on the date such LC Disbursement is
made, the unpaid amount thereof shall bear interest, for each day from and
including the date such LC Disbursement is made to but excluding the date that
the Company reimburses such LC Disbursement, (i) in the case of an LC
Disbursement in US Dollars, at the rate per annum then applicable to ABR
Revolving Loans and (ii) in the case of an LC Disbursement in any other
currency, at the rate per annum determined by the Issuing Bank (which
determination will be conclusive absent manifest error) to represent its cost of
funds plus the Applicable Rate that would at the time be added to the Adjusted
LIBO Rate to determine interest applicable to Revolving LIBOR Loans;
provided that, if the Company fails to reimburse such
LC Disbursement when due pursuant to paragraph (e) of this Section, then Section
2.12(d) shall apply. Interest accrued pursuant to this paragraph shall be for
the account of the Issuing Bank, except
that interest accrued on and after the date of payment by any Lender pursuant to
paragraph (e) of this Section to reimburse the Issuing Bank shall be for the
account of such Lender to the extent of such payment. 

     

    

    
    

    37 

     

                   (i) Replacement of the Issuing Bank.
The Issuing Bank may be
replaced at any time by written agreement among the Company, the Facility Agent,
the replaced Issuing Bank and the successor Issuing Bank. The Facility Agent
shall notify the Lenders of any such replacement of the Issuing Bank. At the
time any such replacement shall become effective, the Company shall pay all
unpaid fees accrued for the account of the replaced Issuing Bank pursuant to
Section 2.11(b). From and after the effective date of any such replacement, (i)
the successor Issuing Bank shall have all the rights and obligations of the
Issuing Bank under this Agreement with respect to Letters of Credit to be issued
thereafter and (ii) references herein to the term “Issuing Bank” shall be deemed to refer to such successor
or to any previous Issuing Bank, or to such successor and all previous Issuing
Banks, as the context shall require. After the replacement of an Issuing Bank
hereunder, the replaced Issuing Bank shall remain a party hereto and shall
continue to have all the rights and obligations of an Issuing Bank under this
Agreement with respect to Letters of Credit issued by it prior to such
replacement (including the right to receive fees under Section 2.11(b)), but
shall not be required to issue additional Letters of Credit. 

     

                   (j) Cash Collateralization. If any Event of Default shall occur and be
continuing, on the Business Day that the Company receives notice from the
Facility Agent or the Required Lenders (or, if the maturity of the Loans has
been accelerated, Lenders with LC Exposures representing more than 50% of the
aggregate amount of LC Exposure) demanding the deposit of cash collateral
pursuant to this paragraph, the Company shall deposit (“Cash Collateralize”) in an account with the Facility Agent, in
the name of the Facility Agent and for the benefit of the Lenders and the
Issuing Bank (the “LC Collateral Account”), an amount in cash in US Dollars equal to
the aggregate amount of LC Exposure as of such date (determined, in the case of
Letters of Credit denominated in Alternative Currencies, on the basis of
Exchange Rates prevailing on such date) plus any accrued and unpaid interest
thereon; provided that the obligation to Cash Collateralize
shall become effective immediately, and such deposit shall become immediately
due and payable, without demand or other notice of any kind, upon the occurrence
of any Event of Default with respect to the Company described in clause (f) of
Section 7.01. Each such deposit in the LC Collateral Account shall be held by
the Facility Agent as collateral for the payment and performance of the
obligations of the Company under this Agreement, and the Company shall from time
to time, at the request of the Facility Agent, deposit additional amounts into
the LC Collateral Account as necessary in order that the amount in such account
shall not be less than the aggregate amount of LC Exposure. The Facility Agent
shall have exclusive dominion and control, including the exclusive right of
withdrawal, over the LC Collateral Account. Other than any interest earned on
the investment of such deposits, which investments shall be made at the option
and sole discretion of the Facility Agent and at the Company’s risk and expense,
such deposits shall not bear interest. Interest or profits, if any, on such
investments shall accumulate in the LC Collateral Account. Monies in the LC Collateral
Account shall be applied by the Facility Agent to reimburse the Issuing
Bank for LC Disbursements for which it has not been reimbursed and, to the
extent not so applied, shall be held for the satisfaction of the reimbursement
obligations of the Company for the LC Exposure at such time or, if the maturity
of the Loans has been accelerated (but subject to the consent of Lenders with LC
Exposures representing more than 50% of the aggregate amount of LC Exposure), be
applied to satisfy other obligations of the Company under this Agreement.
Deposits made in the LC Collateral Account in compliance with the preceding
provisions of this Section as a result of the occurrence of an Event of Default
shall (to the extent not applied as aforesaid) be returned to the Company within
three Business Days after all Events of Default have been cured or waived.
Deposits made in the LC Collateral Account pursuant to Section 2.10(b) shall (to
the extent not applied as aforesaid) be returned to the Company as, and to the
extent that, after giving effect to such return, (i) the aggregate Revolving
Exposures would not exceed the aggregate Commitments, (ii) the aggregate Foreign
Currency Exposures would not exceed the Foreign Currency Sublimit, (iii) the LC
Exposure would not exceed the LC Sublimit and (iv) no Default shall have
occurred and be continuing. 

     

    

    
    

    38 

     

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

     

                   (b) Unless the Applicable Agent shall have
received notice from a Lender prior to the proposed date of any Borrowing that
such Lender will not make available to the Applicable Agent such Lender’s share
of such Borrowing, the Applicable Agent may assume that such Lender has made
such share available on such date in accordance with paragraph (a) of this
Section and may, in reliance upon such assumption, make available to the Company
a corresponding amount. In such event, if a Lender has not in fact made its
share of the applicable Borrowing available to the Applicable Agent, then the
applicable Lender and the Company severally agree to pay to the Applicable Agent
forthwith on demand such corresponding amount with interest thereon, for each
day from and including the date such amount is made available to the Company to
but excluding the date of payment to the Applicable Agent, at (i) in the case of
such Lender, the rate reasonably determined by the Applicable Agent to be the
cost to it of funding such amount or (ii) in the case of the Company, the
interest rate applicable to the subject Loan. 

     

                   SECTION 2.07. Interest Elections. (a) Each Revolving Borrowing initially shall
be of the Type specified in the applicable Borrowing Request and, in the case of
a LIBOR Borrowing or a EURIBOR Borrowing, shall have an initial Interest Period as specified in such Borrowing Request.
Thereafter, the Company may elect to convert such Borrowing to a different Type
or to continue such Borrowing and, in the case of a LIBOR Borrowing or a EURIBOR
Borrowing, may elect Interest Periods therefor, all as provided in this Section.
The Company may elect different options with respect to different portions of an
affected Revolving Borrowing, in which case each such portion shall be allocated
ratably among the Lenders holding the Loans comprising such Borrowing, and the
Loans comprising each such portion shall be considered a separate Revolving
Borrowing. This Section shall not apply to Swingline Borrowings, which may not
be converted or continued. 

     

    

    
    

    39 

     

                   (b) To make an election pursuant to this
Section, the Company shall notify the Applicable Agent of such election by
facsimile (or, in the case of the Facility Agent, by telephone) by the time that
a Borrowing Request would be required under Section 2.03 if the Company were
requesting a Revolving Borrowing of the Type resulting from such election to be
made on the effective date of such election. Each such Interest Election Request
shall be irrevocable and, if telephonic, shall be confirmed promptly by hand
delivery or facsimile to the Facility Agent of a written Interest Election
Request in a form approved by the Facility Agent and signed by a Responsible
Officer of the Company. Notwithstanding any other provision of this Section, the
Company shall not be permitted to (i) change the currency of any Borrowing or
(ii) elect an Interest Period for LIBOR Loans or EURIBOR Loans that does not
comply with Section 2.02(d). 

     

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

     

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

     

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

     

         (iii) the Type of the resulting Borrowing; and 

     

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

     

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

     

    

    
    

    40 

     

                   (d) Promptly following receipt of an Interest
Election Request, the Applicable Agent shall advise each Lender holding a Loan
to which such request relates of the details thereof and of such Lender’s
portion of each resulting Borrowing. 

     

                   (e) If the Company fails to deliver a timely
Interest Election Request with respect to a LIBOR Borrowing or EURIBOR Borrowing
prior to the end of the Interest Period applicable thereto, then, unless such
Borrowing is repaid as provided herein, at the end of such Interest Period, such
Borrowing shall (i) in the case of a LIBOR Borrowing denominated in US Dollars,
be converted to an ABR Borrowing and (ii) in the case of any other LIBOR
Borrowing or a EURIBOR Borrowing, become due and payable on the last day of such
Interest Period. Notwithstanding any contrary provision hereof, if an Event of
Default has occurred and is continuing and the Facility Agent, at the request of
the Required Lenders, so notifies the Company, then, so long as an Event of
Default is continuing (i) no outstanding Revolving Borrowing denominated in US
Dollars may be converted to or continued as a LIBOR Borrowing, (ii) unless
repaid, each LIBOR Revolving Borrowing denominated in US Dollars shall be
converted to an ABR Borrowing at the end of the Interest Period applicable
thereto and (iii) unless repaid, each LIBOR Borrowing or EURIBOR Borrowing
denominated in an Alternative Currency shall be continued as a LIBOR Borrowing
or EURIBOR Borrowing, as applicable, with an Interest Period of one month’s
duration. 

     

                   SECTION 2.08. Termination, Reduction and Increase of
Commitments. (a) Unless
previously terminated, the Commitments shall terminate on the Maturity Date.

     

                   (b) The Company may at any time terminate, or
from time to time reduce, the Commitments; provided that (i) each reduction of the Commitments
shall be in an amount that is an integral multiple of the Borrowing Multiple and
not less than the Borrowing Minimum, in each case for Borrowings denominated in
US Dollars and (ii) the Company shall not terminate or reduce the Commitments
if, after giving effect to any concurrent prepayment of the Revolving Loans or
Swingline Loans in accordance with Section 2.10, the aggregate amount of
Revolving Exposures would exceed the aggregate amount of
Commitments. 

     

                   (c) The Company shall notify the Facility
Agent of any election to terminate or reduce the Commitments under paragraph (b)
of this Section at least three Business Days prior to the effective date of such
termination or reduction, specifying such election and the effective date
thereof. Promptly following receipt of any such notice, the Facility Agent shall
advise the other Agent and the applicable Lenders of the contents thereof. Each
notice delivered by the Company pursuant to this Section shall be irrevocable;
provided that a notice of termination of the
Commitments delivered by a Responsible Officer of the Company may state that
such notice is conditioned upon the effectiveness of other credit facilities, in
which case such notice may be revoked by the Company (by notice to the Facility
Agent on or prior to the specified effective date) if such condition is not
satisfied. Any termination or reduction of the Commitments shall be permanent.
Subject to Section 2.20(d), each
reduction of the Commitments shall be made ratably among the applicable Lenders
in accordance with their Commitments. 

     

    

    
    

    41 

     

                   (d) (i) The Company may on one or more
occasions, by written notice to the Facility Agent signed by a Responsible
Officer of the Company and one or more financial institutions (any such
financial institution referred to in this paragraph (d) being called an
“Increasing Lender”), which may include any consenting Lender,
cause Commitments to be extended by the Increasing Lenders (or cause the
Commitments of the Increasing Lenders to be increased, as the case may be);
provided that (A) at no time shall the aggregate
amount of all extensions of new Commitments and increases in existing
Commitments effected pursuant to this paragraph (d) exceed $100,000,000, (B)
each Increasing Lender, if not already a Lender hereunder, shall be subject to
the approval of the Facility Agent (which approval shall not be unreasonably
withheld), (C) each Increasing Lender, if not already a Lender hereunder, shall
execute all such documentation as the Facility Agent shall reasonably specify to
evidence the Commitment of such Increasing Lender and/or its status as a Lender
hereunder and (D) the election of any Lender to become an Increasing Lender
shall be in the sole discretion of such Lender, and no Lender shall have any
obligation to agree to increase its Commitment hereunder. 

     

                   (ii) Extensions of new Commitments and increases in existing Commitments pursuant to this paragraph (d)
shall become effective on the date specified in the applicable notice delivered
by the Company pursuant to subparagraph (i) above (the “Increase Effective Date”) (which shall be not less than five Business
Days after the date of such notice). Upon the effectiveness of such extension of
new Commitments and/or increases in existing Commitments, (A) each Increasing
Lender not already a Lender hereunder shall be deemed to be a party to this
Agreement and shall thereafter be entitled to all rights, benefits and
privileges accorded a Lender hereunder and subject to all obligations of a
Lender hereunder and (B) Schedule 2.01 shall be deemed to have been amended to
reflect the new Commitment or increase in Commitment, as applicable, of each
Increasing Lender as set forth in the applicable notice delivered by the
Company. 

     

                   (iii) On the Increase Effective Date, (A) the aggregate principal amount of the
Revolving Borrowings outstanding (the “Initial Borrowings”) immediately prior to giving effect to the
extensions of new Commitments and increases in existing Commitments shall be
deemed to be repaid, (B) after the effectiveness of such extension or increase,
the Company shall be deemed to have made new Borrowings (the “Subsequent Borrowings”) in the aggregate principal amounts and
currencies of the Initial Borrowings and of the Types and for the Interest
Periods specified in a Borrowing Request delivered to the Agent in accordance
with Section 2.03, (C) each Lender shall pay to the Applicable Agent in same day
funds an amount equal to the difference, if positive, between (x) such Lender’s
Applicable Percentage (calculated after giving effect to any such extension or
increase) of each Subsequent Borrowing and (y) such Lender’s Applicable
Percentage (calculated without giving effect to any such extension or increase)
of the related Initial Borrowing, (D) after the Applicable Agent receives the
funds specified in clause (C) above, the Applicable Agent shall pay to each
Lender the portion of such funds that is equal to the difference, if positive,
between (1) such Lender’s Applicable
Percentage (calculated without giving effect to any such extension or increase)
of each Initial Borrowing and (2) such Lender’s Applicable Percentage
(calculated after giving effect to any such extension or increase) of the amount
of the related Subsequent Borrowing, (E) each Lender shall be deemed to hold its
Applicable Percentage of each Subsequent Borrowing (each calculated after giving
effect to any such extension or increase) and (F) the Company shall pay each
applicable Lender any and all accrued but unpaid interest on the Initial
Borrowings. The deemed payments made pursuant to clause (A) above in respect of
each LIBOR Loan or EURIBOR Loan shall be subject to indemnification by the
Company pursuant to the provisions of Section 2.15 if the Increase Effective
Date occurs other than on the last day of the Interest Period relating thereto
and breakage costs result. 

     

    

    
    

    42 

     

                   (iv) The terms and conditions of any Commitment increases or new Commitments
created pursuant to this Section, and the Loans made pursuant thereto, shall be
identical to those of the existing Commitments and Loans except with respect to
upfront fees payable to the Increasing Lenders (it being understood and agreed
that the Company may such pay upfront fees to the Increasing Lenders as agreed
between the Company, the Facility Agent and Increasing Lenders). 

     

                   (v) Notwithstanding the foregoing, no increase in the Commitments (or in any
Commitment of any Lender) or extension of new Commitments hereunder shall become
effective under this Section unless, (A) on the date of such increase or
extension, the conditions set forth in paragraphs (a) and (b) of Section 4.02
shall be satisfied (with all references therein to the making of Loans being
deemed to be references to such increase or extension) and the Facility Agent
shall have received a certificate to that effect dated such date and executed by
a Financial Officer of the Company and (B) the Facility Agent shall have
received (with sufficient copies for each of the Lenders) (x) documents
consistent with those delivered on the Effective Date under clause (c) of
Section 4.01 as to the corporate power and authority of the Company to borrow
hereunder after giving effect to such increase or extension and (y) an opinion
of counsel as to such corporate power and authority, the enforceability of the
Loan Documents after giving effect to such increase or extension and such other
matters as the Facility Agent may reasonably request. 

     

                   SECTION 2.09. Repayment of Loans; Evidence of Debt.
(a) The Company hereby
unconditionally promises to pay (i) to the Applicable Agent for the account of
each Lender the then unpaid principal amount of each Revolving Loan of the
Company on the Maturity Date and (ii) to the Swingline Lender the then unpaid
principal amount of each Swingline Loan on the earlier of the Maturity Date and
the first date after such Swingline Loan is made that is the 15th or last day of
a calendar month and is at least three Business Days after such Swingline Loan
is made; provided that on each date that a Revolving Borrowing
denominated in US Dollars (including any ABR Borrowing) is made to the Company,
the Company shall repay all outstanding Swingline Loans. 

     

                   (b) Each Lender shall maintain in accordance
with its usual practice an account or accounts evidencing the
Indebtedness of the Company to such Lender resulting from each Loan made by such Lender, including the amounts of
principal and interest payable and paid to such Lender from time to time
hereunder. 

     

    

    
    

    43 

     

                   (c) The Facility Agent shall maintain accounts
in which it shall record (i) the amount and currency of each Loan made
hereunder, the Class and Type thereof and the Interest Period applicable
thereto, (ii) the amount of any principal or interest due and payable or to
become due and payable from the Company to each Lender hereunder and (iii) the
amount of any sum received by any Agent hereunder for the account of the Lenders
and each Lender’s share thereof. The London Agent shall furnish to the Facility
Agent, promptly after the making of any Loan or Borrowing with respect to which
it is the Applicable Agent or the receipt of any payment of principal or
interest with respect to any such Loan or Borrowing, information with respect
thereto that will enable the Facility Agent to maintain the accounts referred to
in the preceding sentence. 

     

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

     

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

     

                   SECTION 2.10. Prepayment of Loans. (a) The Company shall have the right at any
time and from time to time to prepay any Borrowing in whole or in part, subject
to prior notice in accordance with paragraph (d) of this Section. 

     

                   (b) If, on any date, (i) the aggregate Foreign
Currency Exposures shall exceed the Foreign Currency Sublimit or (ii) the
aggregate Revolving Exposures shall exceed the aggregate Commitments, the
Company shall prepay Loans (A) on the last day of the Interest Period for any
LIBOR Revolving Borrowing or EURIBOR Revolving Borrowing and (B) in the case of
clause (ii) above, on any other day in the event ABR Revolving Borrowings or
Swingline Loans are outstanding (or, if no Loans are outstanding, Cash
Collateralize Letters of Credit by depositing in the LC Collateral Account
subject to the provisions of Section 2.05(j)) an aggregate amount equal to the
lesser of (1) the amount necessary to eliminate such excess (after giving effect
to any previous prepayment of Loans and cash collateralization of Letters or
Credit) and (2) the amount of the applicable Borrowing or Loans referred to in
clause (A) or (B) above. If, on any
date, the aggregate amount of the Revolving Exposures shall exceed 105% of the
aggregate Commitments, then the Company shall, not later than the next Business
Day, prepay one or more Borrowings in an aggregate principal amount sufficient
to eliminate such excess. 

     

    

    
    

    44 

     

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

     

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

     

                   SECTION 2.11. Fees. (a) The Company agrees to pay to the Facility
Agent, in US Dollars, for the account of each Lender, a commitment fee, which
shall accrue at the Applicable Rate on the average daily unused amount of each
of the Commitments of such Lender during the period from and including the date
hereof to but excluding the date on which such Commitment terminates. Accrued
commitment fees shall be payable in arrears on the last day of March, June,
September and December of each year and on the date on which all the Commitments
shall have terminated, commencing on the first such date to occur after the date
hereof. All commitment fees shall be computed on the basis of a year of 360 days
and shall be payable for the actual number of days elapsed (including the first
day but excluding the last day). For purposes of computing commitment fees with
respect to the Commitments, a Commitment of a Lender shall be deemed to be used
to the extent of the outstanding Revolving Loans and the LC Exposure of such Lender (and the
Swingline Exposure of such Lender shall be disregarded for such purpose).

     

    

    
    

    45 

     

                   (b) The Company agrees to pay (i) to the
Facility Agent for the account of each Lender a participation fee with respect
to its participations in Letters of Credit, which shall accrue at the Applicable
Rate for Revolving LIBOR Loans, on the average daily amount of such Lender’s LC
Exposure (excluding any portion thereof attributable to unreimbursed LC
Disbursements) during the period from and including the Effective Date to but
excluding the later of the date on which such Lender’s Commitment terminates and
the date on which such Lender ceases to have any LC Exposure and (ii) to the
Issuing Bank a one-time fronting fee with respect to the issuance of each Letter
of Credit (other than the Existing Letters of Credit) equal to 0.125 % of the
initial amount of such Letter of Credit, as well as the Issuing Bank’s standard
fees with respect to the issuance, amendment, renewal or extension of any Letter
of Credit or processing of drawings thereunder. Participation fees and fronting
fees accrued or becoming payable in respect of Letters of Credit issued through
and including the last day of March, June, September and December of each year
shall be payable on the third Business Day following such last day, commencing
on the first such date to occur after the Effective Date; provided that all such fees shall be payable on the
date on which the Commitments terminate and any such fees accruing after the
date on which the Commitments terminate shall be payable on demand. Any other
fees payable to the Issuing Bank pursuant to this paragraph shall be payable
within 10 days after demand. All participation fees shall be computed on the
basis of a year of 360 days and shall be payable for the actual number of days
elapsed (including the first day but excluding the last day). 

     

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

     

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

     

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

     

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

     

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

     

    

    
    

    46 

     

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

     

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

     

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

     

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

     

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

     

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

     

    

    
    

    47 

     

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

     

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

     

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

     

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

     

         (iii) subject any Recipient to any Tax on its capital reserves (or any similar
Tax) with respect to this Agreement or any Loan or Commitment made by such
Recipient (except for Indemnified Taxes and Excluded Taxes and changes in the
rate of Tax on the overall net income or profits of such Lender); 

     

    and the result of any of
the foregoing shall be to increase the cost to such Lender or such other
Recipient of making or maintaining any LIBOR Loan or EURIBOR Loan (or of
maintaining its obligation to make any such Loan) or to increase the cost to
such Lender, the Issuing Bank or such other Recipient of participating in,
issuing or maintaining any Letter of Credit or to reduce the amount of any sum
received or receivable by such Lender, the Issuing Bank or such other Recipient
hereunder (whether of principal, interest or otherwise), then the Company will
pay to such Lender, the Issuing Bank or such other Recipient, as the case may
be, such additional amount or amounts as will compensate such Lender, the
Issuing Bank or such other Recipient, as the case may be, for such additional
costs incurred or reduction suffered. 

     

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

     

    

    
    

    48 

     

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

     

                   (d) Failure or delay on the part of any Lender
or the Issuing Bank to demand compensation pursuant to this Section shall not
constitute a waiver of such Lender’s or the Issuing Bank’s right to demand such
compensation; provided that the Company shall not be required to
compensate a Lender or the Issuing Bank pursuant to this Section for any
increased costs or reductions incurred more than 180 days prior to the date that
such Lender or the Issuing Bank, as the case may be, notifies the Company of the
Change in Law giving rise to such increased costs or reductions and of such
Lender’s or the Issuing Bank’s intention to claim compensation therefor;
provided further that, if the Change in Law giving rise to
such increased costs or reductions is retroactive, then the 180-day period
referred to above shall be extended to include the period of retroactive effect
thereof. 

     

                   SECTION 2.15. Break
Funding Payments. In the event of (a) the payment of any principal of any LIBOR Loan or any
EURIBOR Loan other than on the last day of the Interest Period applicable
thereto (including as a result of an Event of Default), (b) the conversion of
any LIBOR Loan or any EURIBOR Loan other than on the last day of the Interest
Period applicable thereto, (c) the failure to borrow, convert, continue or
prepay any LIBOR Loan or any EURIBOR Loan on the date specified in any notice
delivered pursuant hereto (regardless of whether such notice may be revoked
under Section 2.10(d) and is revoked in accordance therewith) or (d) the
assignment of any LIBOR Loan or any EURIBOR Loan other than on the last day of
the Interest Period applicable thereto as a result of a request by the Company
pursuant to Section 2.18, then, in any such event, the Company shall compensate
each Lender for the loss, cost and expense attributable to such event. In the
case of a LIBOR Loan or a EURIBOR Loan, such loss, cost or expense to any Lender
shall be deemed to include an amount determined by such Lender to be the excess,
if any, of (i) the amount of interest which would have accrued on the principal
amount of such Loan had such event not occurred, at the Adjusted LIBO Rate or
the Adjusted EURIBO Rate, as the case may be, that would have been applicable to
such Loan, for the period from the date of such event to the last day of the
then current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period for
such Loan) over (ii) the amount of interest that would accrue on such principal
amount for such period at the interest rate which such Lender would bid were it
to bid, at the commencement of such period, for deposits in the applicable currency of a comparable amount and period
from other banks in the London or European interbank market. A certificate of
any Lender setting forth in reasonable detail any amount or amounts that such
Lender is entitled to receive pursuant to this Section shall be delivered to the
Company and shall be conclusive absent manifest error. The Company shall pay
such Lender the amount shown as due on any such certificate within 10 days after
receipt thereof. 

     

    

    
    

    49 

     

                   SECTION
2.16. Taxes.

     

                   (a) Withholding of Taxes;
Gross-Up. Each payment by
the Company under this Agreement shall be made without withholding for any
Taxes, unless such withholding is required by any law. If any Withholding Agent
determines, in its sole discretion exercised in good faith, that it is so
required to withhold Taxes, then such Withholding Agent may so withhold and
shall timely pay the full amount of withheld Taxes to the relevant Governmental
Authority in accordance with applicable law. If such Taxes are Indemnified
Taxes, then the amount payable by the Company shall be increased as necessary so
that, net of such withholding (including such withholding applicable to
additional amounts payable under this Section), the applicable Recipient
receives the amount it would have received had no such withholding been
made. 

     

                   (b) Payment of Other Taxes by the
Company. The Company shall
timely pay any Other Taxes to the relevant Governmental Authority in accordance
with applicable law. 

     

                   (c) Evidence of Payments. As soon as practicable after any payment of
Indemnified Taxes by the Company to a Governmental Authority, the Company shall
deliver to the Facility Agent the original or a certified copy of a receipt
issued by such Governmental Authority evidencing such payment, a copy of the
return reporting such payment or other evidence of such payment reasonably
satisfactory to the Facility Agent. 

     

                   (d) Indemnification by the
Company. The Company shall
indemnify each Recipient for any Indemnified Taxes that are paid or payable by
such Recipient (including Indemnified Taxes that are paid or payable by a
Non-U.S. Lender that is classified as a partnership for U.S. Federal income tax
purposes on behalf of one or more of its Beneficial Owners) in connection with
this Agreement (including amounts payable under this Section 2.16(d)) and any
reasonable expenses arising therefrom or with respect thereto, whether or not
such Indemnified Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority. The indemnity under this Section 2.16(d) shall
be paid within 10 days after the Recipient delivers to the Company a certificate
stating the amount of any Indemnified Taxes so payable by such Recipient. Such
certificate shall be conclusive of the amount so payable absent manifest error.
Such Recipient shall deliver a copy of such certificate to the Facility
Agent.

     

    

    
    

    50

     

                   
(e) Indemnification by the Lenders. Each
Lender shall severally indemnify the Agents for any Taxes (but in the case of
Indemnified Taxes, only to the extent that the Company has not already
indemnified the Agents for any such Indemnified Taxes and without limiting the
obligation of the Company to do so) and the Company for any Excluded Taxes, in
each case attributable to such Lender that are paid or payable by the Agents or
the Company in connection with this Agreement and any reasonable expenses
arising therefrom or with respect thereto, whether or not such Taxes or Excluded
Taxes were correctly or legally imposed or asserted by the relevant Governmental
Authority. The indemnity under this Section 2.16(e) shall be paid within 10 days
after the Agents or the Company delivers to the applicable Lender a certificate
stating the amount of Taxes or Excluded Taxes so paid or payable by the Agents
or the Company. Such certificate shall be conclusive of the amount so paid or
payable absent manifest error. 

     

                   (f) Status of Lenders. (i) Any Lender that is entitled to an
exemption from, or reduction of, any applicable withholding Tax with respect to
any payments under this Agreement shall deliver to the Company and to any
applicable Withholding Agent, at the time or times prescribed by law or
reasonably requested by the Company or any applicable Withholding Agent, such
properly completed and executed documentation prescribed by law or reasonably
requested by the Company or any applicable Withholding Agent as will permit such
payments to be made without, or at a reduced rate of, withholding. In addition,
any Lender, if requested by the Company or any applicable Withholding Agent,
shall deliver such other documentation prescribed by law or reasonably requested
by the Company or any applicable Withholding Agent as will enable the Company or
any applicable Withholding to determine whether or not such Lender is subject to
backup withholding or information reporting requirements. Notwithstanding
anything to the contrary in the preceding two sentences, the completion,
execution and submission of such documentation (other than such documentation
set forth in Section 2.16(f)(ii) and (iii) below) shall not be required if in
the Lender’s reasonable judgment such completion, execution or submission would
subject such Lender to any material unreimbursed cost or expense or would
materially prejudice the legal or commercial position of such Lender. Upon the
reasonable request of the Company or any applicable Withholding Agent, any
Lender shall update any form or certification previously delivered pursuant to
this Section 2.16(f). If any form or certification previously delivered pursuant
to this Section expires or becomes obsolete or inaccurate in any respect with
respect to a Lender, such Lender shall promptly (and in any event within 10 days
after such expiration, obsolescence or inaccuracy) notify the Company and any
applicable Withholding Agent in writing of such expiration, obsolescence or
inaccuracy and update the form or certification if it is legally eligible to do
so.

     

    

    
    

    51

     

         (i) Without limiting the generality of the foregoing, so long as the
Company is a U.S. Person, any Lender with respect to such Company shall, if it
is legally eligible to do so, deliver to such Company and to any applicable
Withholding Agent (in such number of copies reasonably requested by such Company
and any applicable Withholding Agent) on or prior to the date on which such
Lender becomes a party hereto, duly completed and executed copies of whichever
of the following is applicable:

     

         (A) in the case of a Lender that is a U.S.
Person, IRS Form W-9;

     

         (B) in the case of a Non-U.S. Lender claiming the benefits of an income tax
treaty to which the United States is a party (1) with respect to payments of
interest under any this Agreement, IRS Form W-8BEN establishing an exemption
from, or reduction of, U.S. Federal withholding Tax pursuant to the “interest”
article of such tax treaty and (2) with respect to any other applicable payments
under this Agreement, IRS Form W-8BEN establishing an exemption from U.S.
Federal withholding Tax pursuant to the “business profits” or “other income”
article of such tax treaty;

     

         (C) in the case of a Non-U.S. Lender for whom payments under this Agreement
constitute income that is effectively connected with such Lender’s conduct of a
trade or business in the United States, IRS Form W-8ECI;

     

         (D) in the case of a Non-U.S. Lender claiming the benefits of the exemption
for portfolio interest under Section 881(c) of the Code both (1) IRS Form W-8BEN
and (2) a certificate substantially in the form of Exhibit E (a “U.S.
Tax Certificate”) to the effect that such Lender is not (a) a “bank” within the
meaning of Section 881(c)(3)(A) of the Code, (b) a “10 percent shareholder” of
the Company within the meaning of Section 881(c)(3)(B) of the Code (c) a
“controlled foreign corporation” described in Section 881(c)(3)(C) of the Code
and (d) conducting a trade or business in the United States with which the
relevant interest payments are effectively connected;

     

         (E) in the case of a Non-U.S. Lender that is not the beneficial owner of
payments made under this Agreement (including a partnership or a participating
Lender) (1) an IRS Form W-8IMY on behalf of itself and (2) the relevant forms
prescribed in clauses (A), (B), (C), (D) and (F) of this paragraph (f)(ii) that
would be required of each such beneficial owner or partner of such partnership
if such beneficial owner or partner were a Lender; provided, however, that if
the Lender is a partnership and one or more of its partners are claiming the
exemption for portfolio interest under Section 881(c) of the Code, such Lender
may provide a U.S. Tax Certificate on behalf of such partners; or

     

         (F) any other form prescribed by law as a basis for claiming exemption from,
or a reduction of, U.S. Federal withholding Tax together with such supplementary
documentation necessary to enable the Company or any applicable Withholding
Agent to determine the amount of Tax (if any) required by law to be
withheld.

     

    

    
    

    52 

     

         (ii) If a payment made to a Lender under this Agreement would be subject to
U.S. Federal withholding Tax imposed by FATCA if such Lender fails to comply
with the applicable reporting requirements of FATCA (including those contained
in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall
deliver to the Withholding Agent, at the time or times prescribed by law and at
such time or times reasonably requested by the Withholding Agent, such
documentation prescribed by applicable law (including as prescribed by Section
1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably
requested by the Withholding Agent as may be necessary for the Withholding Agent
to comply with its obligations under FATCA, to determine that such Lender has
complied with such Lender’s obligations under FATCA or to determine the amount
to deduct and withhold from such payment. 

     

              (g) Treatment of Certain
Refunds. If any party
determines, in its sole discretion exercised in good faith, that it has received
a refund of any Taxes as to which it has been indemnified pursuant to this
Section 2.16 (including additional amounts paid pursuant to this Section 2.16),
it shall pay to the indemnifying party an amount equal to such refund (but only
to the extent of indemnity payments made under this Section with respect to the
Taxes giving rise to such refund), net of all out-of-pocket expenses (including
any Taxes) of such indemnified party and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such
refund). Such indemnifying party, upon the request of such indemnified party,
shall repay to such indemnified party the amount paid to such indemnified party
pursuant to the previous sentence (plus any penalties, interest or other charges
imposed by the relevant Governmental Authority) in the event such indemnified
party is required to repay such refund to such Governmental Authority.
Notwithstanding anything to the contrary in this Section 2.16(g), in no event
will any indemnified party be required to pay any amount to any indemnifying
party pursuant to this Section 2.16(g) if such payment would place such
indemnified party in a less favorable position (on a net after-Tax basis) than
such indemnified party would have been in if the indemnification payments or
additional amounts giving rise to such refund had never been paid. In order to
invoke the protection of the preceding sentence, an indemnified party must
provide to the indemnifying party whatever information and documentation the
indemnifying party reasonably requests to establish that the indemnified party
would be in a less favorable position (on a net after-Tax basis) than such
indemnified party would have been in if the indemnification payments or
additional amounts giving rise to such refund had never been paid, and the
amount of such detriment. This Section 2.16(g) shall not be construed to require
any indemnified party to make available its Tax returns (or any other
information relating to its Taxes which it deems confidential) to the
indemnifying or any other Person.

     

                   (h) Survival. Each party’s
obligations under this Section 2.16 shall survive termination of this Agreement
and payment of any obligations thereunder. 

     

    

    
    

    53 

     

                   SECTION 2.17. Payments Generally; Pro Rata Treatment; Sharing of Set-offs. (a) The Company shall make each payment
required to be made by it hereunder or under any other Loan Document (whether of
principal, interest, fees or reimbursement of LC Disbursements, or of amounts
payable under Section 2.14, 2.15 or 2.16, or otherwise) prior to the time expressly required hereunder or
under such other Loan Document for such payment or, if no such time is expressly
required, prior to 12:00 noon, Local Time, on the date when due, in immediately
available funds, without set-off or counterclaim. Any amounts received after
such time on any date may, in the discretion of the Applicable Agent, be deemed
to have been received on the next succeeding Business Day for purposes of
calculating interest thereon. All such payments shall be made to the Applicable
Agent for the account of the Lenders to such account as the Applicable Agent
shall from time to time specify in one or more notices delivered to the Company,
except that payments to be made directly to the Issuing Bank or Swingline Lender
as expressly provided herein shall be made directly to such parties and payments
pursuant to Sections 2.14, 2.15, 2.16, and 9.03 shall be made directly to the
Persons entitled thereto. The Applicable Agent shall distribute any such
payments received by it for the account of any other Person to the appropriate
recipient promptly following receipt thereof. If any payment under any Loan
Document shall be due on a day that is not a Business Day, the date for payment
shall be extended to the next succeeding Business Day and, in the case of any
payment accruing interest, interest thereon shall be payable for the period of
such extension. All payments hereunder of principal or interest in respect of
any Loan or LC Disbursement shall, except as otherwise expressly provided
herein, be made in the currency of such Loan or LC Disbursement; all other
payments hereunder and under each other Loan Document shall be made in US
Dollars. Any payment required to be made by any Agent hereunder shall be deemed
to have been made by the time required if such Agent shall, at or before such
time, have taken the necessary steps to make such payment in accordance with the
regulations or operating procedures of the clearing or settlement system used by
such Agent to make such payment. 

     

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

     

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

     

    

    
    

    54 

     

                   (d) Unless an Agent shall have received notice
from the Company prior to the date on which any payment is due to such Agent for
the account of the Lenders or the Issuing Bank hereunder that the Company will
not make such payment, such Agent may assume that the Company has made such
payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to the Lenders or the Issuing Bank, as the case may be,
the amount due. In such event, if the Company has not in fact made such payment,
then each of the Lenders or the Issuing Bank, as the case may be, severally
agrees to repay to such Agent forthwith on demand the amount so distributed to
such Lender or the Issuing Bank with interest thereon, for each day from and
including the date such amount is distributed to it to but excluding the date of
payment to the Agent, at a rate determined by the Agent in accordance with
banking industry rules on interbank compensation. 

     

                   (e) If any Lender shall fail to make any
payment required to be made by it pursuant to Section 2.04(c), 2.05(d), 2.05(e),
2.06(b), 2.16(d) or 9.03(c), then the Facility Agent may, in
its discretion and notwithstanding any contrary provision hereof, (i) apply any
amounts thereafter received by the Facility Agent for the account of such Lender
for the benefit of the Facility Agent, the Swingline Lender or the Issuing Bank
to satisfy such Lender’s obligations to it under such Section until all such
unsatisfied obligations are fully paid, and/or (ii) hold any such amounts in a
segregated account as cash collateral for, and application to, any future
funding obligations of such Lender under any such Section, in the case of each
of clauses (i) and (ii) above, in any order as determined by the Facility Agent
in its discretion. 

     

                   SECTION 2.18. Mitigation Obligations;
Replacement of Lenders. (a) If any Lender requests compensation under Section 2.14, or if the
Company is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.16,
then such Lender shall use reasonable efforts to designate a different lending
office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designation or assignment (i) would eliminate
or reduce amounts payable
pursuant to Section 2.14 or 2.16, as the case may be, in the future and (ii)
would not subject such Lender to any unreimbursed cost or expense and would not
otherwise be disadvantageous to such Lender. The Company hereby agrees to pay
all reasonable costs and expenses incurred by any Lender in connection with any
such designation or assignment.

     

    

    
    

    55 

     

                   (b) If (i) any Lender requests compensation
under Section 2.14, (ii) the Company is required to pay any additional amount to
any Lender or any Governmental Authority for the account of any Lender pursuant
to Section 2.16 or (iii) any Lender is a Defaulting Lender, then the Company
may, at its sole expense and effort, upon notice to such Lender and the Facility
Agent, require such Lender to assign and delegate, without recourse (in
accordance with and subject to the restrictions contained in Section 9.04), all
its interests, rights and obligations under the Loan Documents to an assignee
that shall assume such obligations (which assignee may be another Lender, if a
Lender accepts such assignment); provided that (x) the
Company shall have received the prior written consent of the Facility Agent and
the Issuing Bank, which consent, in each case, shall not unreasonably be
withheld, (y) such Lender shall have received payment of an amount equal to the
outstanding principal of its Loans and funded participations in LC Disbursements
and Swingline Loans, accrued interest thereon, accrued fees and all other
amounts payable to it hereunder, from the assignee (to the extent of such
outstanding principal, funded participations and accrued interest and fees) or
the Company (in the case of all other amounts) and (z) in the case of any such
assignment resulting from a claim for compensation under Section 2.14 or
payments required to be made pursuant to Section 2.16, such assignment will
result in a material reduction in such compensation or payments. A Lender shall
not be required to make any such assignment and delegation if, prior thereto, as
a result of a waiver by such Lender or otherwise, the circumstances entitling
the Company to require such assignment and delegation cease to apply.

     

                   SECTION 2.19. Redenomination of Certain
Alternative Currencies. (a) Each obligation of any party to this Agreement to make a payment
denominated in the national currency unit of any member state of the European
Union that adopts the Euro as its lawful currency after the date hereof shall be
redenominated into Euro at the time of such adoption (in accordance with the EMU
Legislation). If, in relation to the currency of any such member state, the
basis of accrual of interest expressed in this Agreement in respect of that
currency shall be inconsistent with any convention or practice in the London
interbank market for the basis of accrual of interest in respect of the Euro,
such expressed basis shall be replaced by such convention or practice with
effect from the date on which such member state adopts the Euro as its lawful
currency; provided that if any
Borrowing in the currency of such member state is outstanding immediately prior
to such date, such replacement shall take effect, with respect to such
Borrowing, at the end of the then current Interest Period. 

     

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

     

    

    
    

    56 

     

                   SECTION 2.20. Defaulting
Lenders. Notwithstanding any
provision of this Agreement to the contrary, if any Lender becomes a Defaulting
Lender, then the following provisions shall apply for so long as such Lender is
a Defaulting Lender: 

     

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

     

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

     

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

     

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

     

         (ii) if the reallocation
described in clause (i) above cannot, or can only partially, be effected, the
Company shall within three Business Days following notice by the Facility Agent
(x) first, prepay Swingline
Loans in an amount equal to such Defaulting Lender’s Swingline Exposure (or such
portion thereof as shall remain after giving effect to any partial reallocation
pursuant to clause (i) above) and (y) second, Cash Collateralize for the benefit of the
Issuing Bank only the Company’s obligations corresponding to such Defaulting
Lender’s LC Exposure (after giving effect to any partial reallocation pursuant
to clause (i) above) in accordance with the procedures set forth in Section
2.05(j) for so long as such LC Exposure is outstanding;

     

         (iii) if the Company cash
collateralizes any portion of such Defaulting Lender’s LC Exposure pursuant to
clause (ii) above, the Company shall not be required to pay any fees to such
Defaulting Lender pursuant to Section 2.11(b) with respect to such Defaulting
Lender’s LC Exposure during the period such Defaulting Lender’s LC Exposure is
Cash Collateralized;

     

         (iv) if the LC Exposure of the
non-Defaulting Lenders is reallocated pursuant to clause (i) above, then the
fees payable to the Lenders pursuant to Sections 2.11(a) and 2.11(b) shall be adjusted in accordance with such
non-Defaulting Lenders’ Applicable Percentages; and 

     

    

    
    

    57 

     

         (v) if all or any portion of
such Defaulting Lender’s LC Exposure is neither reallocated nor Cash
Collateralized pursuant to clause (i) or (ii) above, then, without prejudice to
any rights or remedies of the Issuing Bank or any other Lender hereunder, all
participation fees payable under Section 2.11(b) with respect to such Defaulting
Lender’s LC Exposure shall be payable to the Issuing Bank until and to the
extent that such LC Exposure is reallocated and/or cash
collateralized;

     

                   (d) the Company may, upon at least three
Business Days’ notice to such Defaulting Lender (with a copy to the Facility
Agent), elect from time to time to irrevocably terminate, in whole or in part,
the unused portion of the Commitment of such Defaulting Lender. Such termination
shall be effective, with respect to the applicable portion of such Defaulting
Lender’s then existing unused Commitment, on the date set forth in such notice
(provided, however, that such date
shall be no earlier than three Business Days after such notice) and with respect
to the applicable portion of any unused Commitment thereafter arising, on the
later of the date set forth in such notice and the date on which such unused
Commitment first arises (and no commitment fee will be payable in respect of
such portion of such unused Commitment terminated on the date it arises). Upon
termination of any portion of the Defaulting Lender’s unused Commitments under
this paragraph, the Company shall pay or cause to be paid all accrued commitment
fees payable to such Defaulting Lender and all other amounts due and payable to
such Defaulting Lender hereunder in respect of such portion of the Defaulting
Lender’s unused Commitment. Upon such payments, the obligations of such
Defaulting Lender hereunder with respect to such portion of such unused
Commitment which has been terminated shall, by the provisions hereof, be
released and discharged; provided, however, that such
Defaulting Lender’s rights and obligations provided in Section 9.03 with respect
to such portion of such unused Commitment which has been terminated shall
survive such release and discharge as to matters occurring prior to such
date;

     

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

     

    

    
    

    58 

     

                   If (a)
(i) a Bankruptcy Event with respect to a parent entity of any Lender shall occur
following the date hereof and for so long as such event shall continue or (ii)
the Swingline Lender or the Issuing Bank has a good faith belief that any Lender
has defaulted in
fulfilling its obligations under one or more other agreements in which such
Lender commits to extend credit and (b) the Swingline Lender or the Issuing Bank
notifies the Company that in its judgment there is a material risk that such
Lender will not perform its obligation to fund its participation in any
Swingline Exposure or LC Exposure, the Swingline Lender shall not be required to fund any
Swingline Loan or the Issuing Bank shall not be required to issue, amend or
increase any Letter of Credit, unless the Swingline Lender or the Issuing Bank,
as the case may be, shall have entered into arrangements with the Company or
such Lender, satisfactory to the Swingline Lender or the Issuing Bank, as the
case may be, to defease any risk to it in respect of such Lender hereunder.

     

                   In the event that the Agents, the Company, the
Swingline Lender and the Issuing Bank all agree that a Defaulting Lender has
adequately remedied all matters that caused such Lender to be a Defaulting
Lender, then the Swingline Exposures and LC Exposures of the Lenders shall be
readjusted to reflect the inclusion of such Lender’s Commitment (to the extent
such Commitment shall not have been terminated as provided in clause (d) above)
and on such date such Lender shall purchase at par such of the Loans of the
other Lenders (other than Swingline Loans) as the Facility Agent shall determine
may be necessary in order for such Lender to hold such Loans in accordance with
its Applicable Percentage.

     

    ARTICLE III

     

    Representations and Warranties

     

                   The
Company represents and warrants to the Lenders that: 

     

                   SECTION 3.01. Existence,
Qualification and Power; Compliance with Laws. The Company and each Subsidiary (a) is duly
incorporated or organized, validly existing and in good standing under the laws
of the jurisdiction of its incorporation or organization, (b) has all requisite
power and authority and all requisite governmental licenses, authorizations,
consents and approvals to (i) own its assets and carry on its business and (ii)
execute, deliver and perform its obligations under the Loan Documents (if any)
to which it is a party, (c) is duly qualified and is licensed and in good
standing under the laws of each jurisdiction where its ownership, lease or
operation of properties or the conduct of its business requires such
qualification or license and (d) is in compliance with all laws, regulations and
orders of any Governmental Authority applicable to it or its properties; except
in each case referred to in clause (b)(i), (c) or (d), to the extent that
failure to do so could not reasonably be expected to result in a Material
Adverse Effect.

     

                   SECTION 3.02. Authorization; No
Contravention. The
execution, delivery and performance by the Company of each Loan Document have
been duly authorized by all necessary corporate or other organizational action,
and do not and will not (a) contravene the terms of the Company’s charter,
by-laws or other organizational documents; (b) conflict with or result in any
breach or contravention of, or the creation of any Lien under, or require any
payment to be made under (i) any material agreement, instrument or undertaking to which the Company
is a party or affecting the Company or the properties of the Company or any of
its subsidiaries or (ii) any order, injunction, writ or decree of any
Governmental Authority or any arbitral award to which the Company or its
property is subject; or (c) violate any law, rule or regulation. The Company and
each Subsidiary is in compliance with all agreements, instruments and
undertakings referred to in clause (b)(i), except to the extent that failure to
be in compliance could not reasonably be expected to result in a Material
Adverse Effect. 

     

    

    
    

    59 

     

                   SECTION 3.03. Governmental Authorization;
Other Consents. No
registration with or consent or approval of, or other action by, any
Governmental Authority or any other Person is required in connection with the
execution, delivery and performance of this Agreement or the other Loan
Documents by the Company or the borrowings and each other extension of credit
hereunder, other than registrations, consents and approvals received prior to
the date hereof and which are in full force and effect or such registrations,
consents and approvals referred to in Section 3.01 hereof.

     

                   SECTION 3.04. Binding Effect.
This Agreement has been, and each
other Loan Document, when delivered hereunder, will have been, duly executed and
delivered by the Company. This Agreement constitutes, and each other Loan
Document when so executed and delivered will constitute, a legal, valid and
binding obligation of the Company enforceable against the Company in accordance
with its terms except to the extent that enforcement may be limited by
applicable bankruptcy, reorganization, moratorium, insolvency and similar laws
affecting creditors’ rights generally or by equitable principles of general
application, regardless of whether considered in a proceeding in equity or at
law.

     

                   SECTION 3.05. Financial
Statements; No Material Adverse Effect. (a) The Audited Financial Statements (i) were prepared in accordance
with GAAP consistently applied throughout the period covered thereby, except as
otherwise expressly noted therein; (ii) fairly present in all material respects
the consolidated financial condition of the Company and the Subsidiaries as of
the date thereof and their consolidated results of operations for the period
covered thereby in accordance with GAAP consistently applied throughout the
period covered thereby, except as otherwise expressly noted therein; and (iii)
show all material indebtedness and other liabilities, direct or contingent, of
the Company and the Subsidiaries as of the date thereof, including liabilities
for taxes, material commitments and Indebtedness.

     

                   (b) The unaudited consolidated balance sheet
of the Company and the Subsidiaries as at April 30, 2010, and the related
unaudited consolidated statements of earnings and cash flows for the nine-month
period ended on that date, (i) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise
expressly noted therein and (ii) fairly present in all material respects the
financial condition of the Company and the Subsidiaries as of the date thereof
and their results of operations for the period covered thereby, subject, in the
case of clauses (i) and (ii), to the absence of footnotes and to normal year-end
audit adjustments.

     

    

    
    

    60 

     

                   (c) Since the date of the Audited Financial
Statements, there has been no event or circumstance, either individually or in
the aggregate, that has resulted, or could reasonably be expected to result, in
a Material Adverse Effect. The Company is Solvent.

     

                   SECTION 3.06. Litigation. (a) There are no actions, suits or proceedings
(whether or not purportedly on behalf of the Company or any Subsidiary) pending
or, to the knowledge of the Company, threatened against or affecting the Company
or any Subsidiary at law or in equity or before or by any Governmental
Authority, which involve any of the Transactions or which could reasonably be
expected to result in a Material Adverse Effect. 

     

                   (b) Neither the Company nor any Subsidiary is
in default with respect to any judgment, writ, injunction, decree, rule or
regulation of any Governmental Authority which could reasonably be expected to
result in a Material Adverse Effect.

     

                   SECTION 3.07. No Default. Neither the Company nor any Subsidiary is a
party to any agreement, indenture, loan or credit agreement or any lease or
other agreement or instrument or subject to any charter or other corporate
restriction or any judgment, order, writ, injunction, decree or regulation which
could reasonably be expected to result in a Material Adverse Effect. Neither the
Company nor any Subsidiary is in default in the performance, observance or
fulfillment of any of the obligations, covenants or conditions contained in any
agreement or instrument to which it is a party, which default could reasonably
be expected to result in a Material Adverse Effect.

     

                   SECTION 3.08. Ownership of Property;
Liens. The Company and
each Subsidiary has good title to its respective properties and assets, and all
such properties and assets are free and clear of all Liens other than Permitted
Liens.

     

                   SECTION 3.09. Environmental Compliance.
Except as disclosed in
Schedule 3.09 hereto and
in the financial statements described in Section 3.05 (including the notes
thereto), the Company and each Subsidiary are in compliance with all applicable
Environmental Laws and neither the Company nor any Subsidiary has used Hazardous
Materials on, from, or affecting any property now owned or occupied or hereafter
owned or occupied by the Company or any such Subsidiary in any manner which
violates any applicable Environmental Law, except to the extent any such
noncompliance or violation could not reasonably be expected to result in a
Material Adverse Effect. To the best actual knowledge of any Responsible Officer
of the Company, no prior owner of any such property or any tenant, subtenant,
prior tenant or prior subtenant have used Hazardous Materials on, from, or
affecting such property in any manner which violates any applicable
Environmental Law, except to the extent any such violation could not reasonably
be expected to result in a Material Adverse Effect.

     

                   SECTION 3.10. Insurance. The properties of the Company and the
Subsidiaries are insured with financially sound and reputable insurance
companies in such amounts, with such deductibles and covering such risks as are
customarily carried by companies
engaged in similar businesses and owning similar properties in localities where
the Company or the applicable Subsidiary operates.

     

    

    
    

    61 

     

                   SECTION 3.11. Taxes. Each of the Company and the Subsidiaries has
timely filed or caused to be filed all Tax returns and reports required to have
been filed and has paid or caused to be paid all Taxes required to have been
paid by it, except (a) Taxes that are being contested in good faith by
appropriate proceedings and for which the Company or such Subsidiary, as
applicable, has set aside on its books adequate reserves or (b) to the extent
that the failure to do so could not reasonably be expected to result in a
Material Adverse Effect. There is no proposed tax assessment against the Company
or any Subsidiary that would, if made, result in a Material Adverse Effect.
Except as set forth in Schedule
3.11 hereto, the Company is not a
party to any tax sharing agreement. 

     

                   SECTION 3.12. ERISA Compliance.
No material liability under ERISA
or the Code (other than for PBGC premiums due but not delinquent), has been
imposed, or could reasonably be expected to be imposed, upon the Company or any
ERISA Affiliate. No ERISA Event has occurred, or could reasonably be expected to
occur, that, when taken together with any other ERISA Events that have occurred,
could reasonably be expected to result in a material liability to the Company or
any ERISA Affiliate. No lien imposed under the Code or ERISA on the assets of
the Company or any of its ERISA Affiliates exists or to the knowledge of the
Company is likely to arise on account of any Plan. The excess of the present
value of all projected benefit obligations under each Plan (based on the
assumptions used for purposes of preparing the audited financial statements set
forth in the Company’s most recent Annual Report on Form 10-K), as of the date
of the most recent financial statements reflecting such amounts, over the fair
market value of the assets of such Plan, if any, could not reasonably be
expected to result in a Material Adverse Effect. 

     

                   SECTION 3.13. Subsidiaries; Equity
Interests. Attached hereto
as Schedule 3.13 is a correct
and complete list of each of the Subsidiaries and Affiliates (other than
directors and officers of the Company) as of the date hereof showing as to each
(a) Subsidiary, its name, the jurisdiction of its incorporation, its
shareholders or other owners of interests in such Subsidiary and the number of
outstanding shares or other ownership interests owned by each shareholder or
other owner of interests and (b) Affiliate in which the Company or any of its
Subsidiaries owns an interest, the number of shares or other ownership interests
of such Affiliate owned directly or indirectly by the Company. 

     

                   SECTION 3.14. Margin Regulations; Investment
Company Act. (a) Neither
the Company nor any of the Subsidiaries is engaged or will engage, principally
or as one of its important activities, in the business of purchasing or carrying
margin stock (within the meaning of Regulation U issued by the Board), or
extending credit for the purpose of purchasing or carrying margin stock.
Following the application of the proceeds of each Borrowing and each issuance of
a Letter of Credit, not more than 25% of the value of the assets (either of the
Company only or of the Company and the Subsidiaries on a consolidated basis)
subject to any provision of this Agreement under which the sale, pledge or disposition of
assets is restricted (within the meaning of Regulation U) will be margin stock.

     

    

    
    

    62 

     

                   (b) None of the Company or any Subsidiary is
or is required to be registered as an “investment company” under the Investment
Company Act of 1940. 

     

                   SECTION 3.15. Disclosure. None of the Information Memorandum, this
Agreement, any other Loan Document or any other document, certificate or written
statement furnished to any Agent, the Issuing Bank or any Lender by or on behalf
of the Company or any of the Subsidiaries for use in connection with the
transactions contemplated by this Agreement contains any untrue statement of
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 they were made.

     

                   SECTION 3.16. Compliance with Laws.
The Company and each Subsidiary is in compliance with all laws,
rules, regulations, orders and decrees which are applicable to the Company or
such Subsidiary, or to any of their respective properties, the failure to comply
with which could reasonably be expected to result in a Material Adverse
Effect.

     

                   SECTION 3.17. Permits and Licenses,
Etc. The Company and each
Subsidiary has all permits, licenses, certifications, authorizations and
approvals required for it lawfully to own and operate its respective business
except to the extent the failure to have any such permit, license,
certification, authorization or approval could not reasonably be expected to
result in a Material Adverse Effect. 

     

                   SECTION 3.18. Labor Disputes and Acts of
God. Neither the business
nor the properties of the Company or any Subsidiary are affected by any
accident, loss, theft, destruction, strike, lockout or other labor dispute,
embargo, condemnation, act of God or of the public enemy or other casualty
(whether or not covered by insurance), which could reasonably be expected to
result in a Material Adverse Effect.

     

                   SECTION 3.19. Specially Designated Nationals
or Blocked Persons List. None of the Company, the Subsidiaries or any Affiliates of the Company
are named on the United States Department of the Treasury’s Specially Designated
Nationals or Blocked Persons list.

     

                   SECTION 3.20. Cash Pool
Arrangements. The Cash Pool Availability under
each Cash Pool Arrangement exceeds the Cash Pool Obligations outstanding
thereunder, and no Cash Pool Bank has made extensions of third party financing
pursuant to any Cash Pool Arrangement in excess of the Cash Pool Availability
thereunder. Attached hereto as Schedule
3.20 is a correct and complete
list of all Cash Pool Arrangements of the Company and the Subsidiaries as of the
date hereof.

     

    

    
    

    63 

     

    ARTICLE
IV

     

    Conditions

     

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

     

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

     

              (b) The Facility Agent shall
have received a favorable written opinion (addressed to the Facility Agent and
the Lenders and dated the Effective Date) of Cleary Gottlieb Steen &
Hamilton LLP, counsel for the Company, substantially in the form of Exhibit
F. The Company hereby requests
such counsel to deliver such opinion.

     

              (c) The Facility Agent shall
have received such documents as the Facility Agent or its counsel may reasonably
request relating to the organization, existence and good standing of the
Company, the authorization of the Transactions and any other legal matters
relating to the Company, the Loan Documents or the Transactions, all in form and
substance satisfactory to the Facility Agent and its counsel.

     

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

     

              (e) There shall not have
occurred since July 31, 2009, any event, condition or circumstance that has
resulted, or could reasonably be expected to result, in a Material Adverse
Effect.

     

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

     

              (g) The Existing Credit
Agreement and the commitments thereunder shall have been terminated, the loans
and other amounts outstanding or payable thereunder shall have been paid in full
and all letters of credit outstanding thereunder shall have expired or been
terminated or arrangements shall have been made for such letters of credit to
become Existing Letters of Credit and the Facility Agent shall have received evidence
reasonably satisfactory to it of the foregoing. 

     

    

    
    

    64 

     

              (h) The Facility Agent shall
have received the annual financial projections for the Company and its
Subsidiaries for the years 2010 through 2013, all in form and substance
satisfactory to the Facility Agent.

     

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

     

              (j) The Facility Agent shall
have received evidence reasonably satisfactory to it that the Company has given
a notice of redemption for the Existing Notes. 

     

    The Facility Agent shall
notify the Company and the Lenders of the Effective Date, and such notice shall
be conclusive and binding. Notwithstanding the foregoing, the obligations of the
Lenders to make Loans and of the Issuing Bank to issue Letters of Credit
hereunder shall not become effective unless each of the foregoing conditions is
satisfied (or waived pursuant to Section 9.02) at or prior to 5:00 p.m., New
York City time, on or before July 15, 2010 (and, in the event such conditions
are not so satisfied or waived, the Commitments shall terminate at such time).

     

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

     

              (a) The representations and
warranties of the Company set forth in the Loan Documents shall be true and
correct in all material respects on and as of the date of such Borrowing or the
date of issuance, amendment, renewal or extension of such Letter of Credit, as
applicable.

     

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

     

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

     

    ARTICLE V

     

    Affirmative Covenants

     

                   So long as any Lender shall have any
Commitment hereunder, any Loan or other Obligation hereunder shall remain unpaid
or unsatisfied or any Letter of Credit shall remain outstanding, the Company shall, and shall (except in the
case of the covenants set forth in Sections 5.01, 5.02, and 5.03) cause each
Subsidiary to: 

     

    

    
    

    65 

     

                   SECTION 5.01. Financial Statements.
Deliver to the Facility Agent, in
form and detail satisfactory to the Facility Agent and the Lenders:

     

              (a) as soon as available, but
in any event within 90 days after the end of each Fiscal Year of the Company or
at such earlier time as the SEC may require the Company to deliver its Form 10-K
(commencing with the Fiscal Year ended July 31, 2010), a consolidated balance
sheet of the Company and the Subsidiaries as at the end of such Fiscal Year, and
the related consolidated statements of earnings, shareholders’ equity and cash
flows for such Fiscal Year, setting forth in each case in comparative form the
figures for the previous Fiscal Year, all in reasonable detail and prepared in
accordance with GAAP consistently applied throughout the periods covered
thereby, except as otherwise expressly noted therein, audited and accompanied by
a report and opinion of an independent certified public accountant of nationally
recognized standing reasonably acceptable to the Required Lenders, which report
and opinion shall be prepared in accordance with generally accepted auditing
standards and shall not be subject to any “going concern” or like qualification
or exception or any qualification or exception as to the scope of such financial
statement audit; provided that the
requirements of this paragraph shall be deemed satisfied by delivery within the
time period specified above of (i) a copy of the Company’s Annual Report on Form
10-K for such Fiscal Year (together with the Company’s annual report to
shareholders, if any, prepared pursuant to Rule 14a-3 under the Exchange Act)
(“Form
10-K”) prepared in accordance
with the requirements therefor and filed with the SEC or (ii) a notice setting
forth a written reference to a website that contains such Form 10-K (together
with the Company’s annual report to shareholders, if any, prepared pursuant to
Rule 14a-3 under the Exchange Act); and

     

              (b) as soon as available, but
in any event within 45 days after the end of each of the first three fiscal
quarters of the Company or at such earlier time as the SEC may require the
Company to deliver its Form 10-Q (commencing with the fiscal quarter ended
October 31, 2010), (i) a consolidated balance sheet of the Company and the
Subsidiaries as at the end of such quarter and (ii) consolidated statements of
earnings of the Company and the Subsidiaries for such quarter and (in the case
of the second and third quarters) for the portion of the Fiscal Year ending with
such quarter, and a statement of cash flows for the portion of the Fiscal Year
ending with such quarter, setting forth in each case in comparative form the
figures for the corresponding periods in the previous Fiscal Year, all in
reasonable detail, prepared in accordance with GAAP applicable to quarterly
financial statements generally consistently applied throughout the periods
covered thereby, except as otherwise expressly noted therein, and certified by a
Responsible Officer of the Company as fairly presenting, in all material
respects, the financial position of the Company and the Subsidiaries being
reported on and their results of operations and cash flows, subject to the
changes resulting from year-end
adjustments; provided that the
requirements of this paragraph shall be deemed satisfied by delivery within the
time period specified above of (i) a copy of the Company’s Quarterly Report on
Form 10-Q (“Form 10-Q”) prepared in
compliance with the requirements therefor and filed with the SEC or (ii) a
notice setting forth a written reference to a website that contains such Form
10-Q.

     

    

    
    

    66 

     

    As to any information
contained in materials furnished pursuant to Section 5.02(c), the Company shall
not be separately required to furnish such information under clause (a) or (b)
above, but the foregoing shall not be in derogation of the obligation of the
Company to furnish the information and materials described in clauses (a) and
(b) above at the times specified therein. 

     

                   SECTION 5.02. Certificates; Other
Information. Deliver to
the Facility Agent, in form and detail satisfactory to the Facility Agent and
the Required Lenders: 

     

              (a) concurrently with the
delivery of the financial statements referred to in Section 5.01(a), a
certificate of its independent certified public accountants certifying such
financial statements and stating that in making the examination necessary
therefor no knowledge was obtained of any Default or, if any such Default shall
exist, stating the nature and status of such event;

     

              (b) concurrently with the
delivery of the financial statements referred to in Section 5.01(a) and (b), a
duly completed Compliance Certificate signed by a Responsible Officer of the
Company;

     

              (c) promptly after the same
are available, copies of each annual report, proxy or financial statement or
other report or communication sent to the stockholders of the Company, and
copies of all annual, regular, periodic and special reports and registration
statements which the Company may file or be required to file with the SEC under
Section 13 or 15(d) of the Securities Exchange Act of 1934, and not otherwise
required to be delivered to the Facility Agent pursuant hereto;

     

              (d) promptly after the
furnishing thereof, copies of any statement or report furnished to any holder of
debt securities of the Company or any Subsidiary pursuant to the terms of any
indenture, loan or credit or similar agreement and not otherwise required to be
furnished to the Lenders pursuant to Section 5.01 or any other clause of this
Section;

     

              (e) promptly, and in any
event within five Business Days after receipt thereof by the Company or any
Subsidiary thereof, copies of each notice or other correspondence received from
the SEC or the U.S. Department of Justice concerning any investigation or
possible investigation or other inquiry by such agency regarding financial or
other operational results of the Company or any Subsidiary thereof;
and

     

              (f) promptly, such additional
information regarding the business, financial or corporate affairs of the
Company or any Subsidiary, or compliance with the terms of the Loan Documents, as the Facility
Agent or any Lender may from time to time reasonably
request.

     

    

    
    

    67

     

                   Documents required to be delivered pursuant to
Section 5.01(a) or (b) or paragraph (c) of this Section (to the extent any such
documents are included in materials otherwise filed with the SEC) may be
delivered electronically and if so delivered, shall be deemed to have been
delivered on the date (i) on which the Company posts such documents, or provides
a link thereto on the Company’s website on the Internet at www.pall.com; or (ii)
on which such documents are posted on the Company’s behalf on an Internet or
intranet website, if any, to which each Lender and the Facility Agent has access
(whether a commercial, third-party website or whether sponsored by the Facility
Agent); provided that the Company shall notify the Facility
Agent (by facsimile transmission or electronic mail) of the posting of any such
documents and provide to the Facility Agent by electronic mail electronic
versions (i.e., soft copies) of such documents.
Notwithstanding anything contained herein, in every instance the Company shall
be required to provide paper copies of the Compliance Certificates required by
Section 5.02(b) to the Facility Agent. Except for such Compliance Certificates,
the Facility Agent shall have no obligation to request the delivery or to
maintain copies of the documents referred to above, and in any event shall have
no responsibility to monitor compliance by the Company with any such request for
delivery.

     

                   The
Company hereby acknowledges that (a) the Facility Agent may make available to
the Lenders and the Issuing Bank materials and/or information provided by or on
behalf of the Company hereunder (collectively, “Company Materials”) by posting the Company Materials on
IntraLinks or another similar electronic system (the “Platform”) and (b) certain of the Lenders may be
“public-side” Lenders (i.e., Lenders that do not wish to receive material
non-public information with respect to the Company or its securities) (each, a
“Public Lender”). The Company hereby agrees that (w) all
Company Materials that are to be made available to Public Lenders shall be
clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that
the word “PUBLIC” shall appear prominently on the first page thereof; (x) by
marking Company Materials “PUBLIC,” the Company shall be deemed to have
authorized the Facility Agent, the Issuing Bank and the Lenders to treat such
Company Materials as either publicly available information or not material
information (although it may be sensitive and proprietary) with respect to the
Company or its securities for purposes of United States Federal and state
securities laws; (y) all Company Materials marked “PUBLIC” are permitted to be
made available through a portion of the Platform designated “Public Investor”;
and (z) the Facility Agent and the Arranger shall be entitled to treat any
Company Materials that are not marked “PUBLIC” as being suitable only for
posting on a portion of the Platform not designated “Public Investor”.

     

                   SECTION
5.03. Notices. Promptly notify the Facility
Agent:

     

         (a) of the occurrence of any
Default or Event of Default which shall have occurred or the occurrence or
existence of any event or circumstance that in the reasonable judgment of the
Company is likely to become a Default or Event of Default;

     

    

    
    

    68

     

         (b) of any matter that has
resulted or could reasonably be expected to result in a Material Adverse Effect,
including (i) breach or non-performance of, or any default under, any agreement,
instrument or other undertaking to which the Company or any Subsidiary is a
party or by which any of the Company or the Subsidiaries or any of their
respective properties are bound; (ii) any dispute, litigation, investigation,
proceeding or suspension between the Company or any Subsidiary and any
Governmental Authority; or (iii) the commencement of, or any material
development in, any litigation or proceeding affecting the Company or any
Subsidiary, including pursuant to any applicable Environmental
Laws;

     

         (c) of the occurrence of any ERISA
Event;

     

         (d) of any material change in
accounting policies or financial reporting practices by the Company or any
Subsidiary not mandated by GAAP; and

     

         (e) of any announcement by
Moody’s or S&P of any change in a rating by S&P or Moody’s of the Index
Debt.

     

                   Each
notice pursuant to this Section shall be accompanied by a statement of a
Responsible Officer of the Company setting forth details of the occurrence
referred to therein and stating what action the Company has taken and proposes
to take with respect thereto. Each notice pursuant to paragraph (a) of this
Section shall describe with particularity any and all provisions of this
Agreement and any other Loan Document that have been breached.

     

                   SECTION
5.04. Payment of
Obligations. (a) Pay all
material indebtedness and obligations, now existing or hereafter arising, as and
when due and payable except where (i) the validity or amount thereof is being
contested in good faith and by appropriate proceedings, which proceedings shall
include good faith negotiations, and (ii) the Company or any Subsidiary has set
aside on its books adequate reserves with respect thereto in accordance with
GAAP, and (iii) the failure to make such payment pending such contest could not
reasonably be expected to result in a Material Adverse Effect, and (b) pay and
discharge or cause to be paid and discharged promptly all Taxes imposed upon it
or upon its income and profits, or upon any of its property, real, personal or
mixed, or upon any part thereof, as and when due and payable, as well as all
lawful claims for labor, materials and supplies or otherwise which, if unpaid,
might become a lien or charge upon such properties or any part thereof or except
where the failure to make such payment could not reasonably be expected to
result in a Material Adverse Effect; provided, however, that neither the Company nor any Subsidiary
shall be required to pay and discharge or cause to be paid and discharged any
such Tax, assessment, charge, levy or claim so long as the validity thereof
shall be contested in good faith by appropriate proceedings, and the Company or
such Subsidiary, as the case may be, shall have set aside on its books adequate
reserves determined in accordance with GAAP with respect to any such tax,
assessment, charge, levy or claim so contested; provided further that, subject to the foregoing proviso, the
Company and each Subsidiary will pay or cause to be paid all such taxes,
assessments, charges, levies or claims upon the commencement of proceedings to
foreclose any lien which has attached as security therefor.

     

    

    
    

    69

     

                   SECTION
5.05. Preservation of Existence,
Etc. (a) Preserve, renew
and maintain in full force and effect its legal existence and good standing
under the laws of the jurisdiction of its organization except in a transaction
permitted by Section 6.04 or 6.05, (b) take all reasonable action to maintain
all rights, privileges, permits, licenses and franchises (other than as
expressly permitted herein) necessary or desirable in the normal conduct of its
business, except to the extent that failure to do so could not reasonably be
expected to result in a Material Adverse Effect and (c) preserve or renew all of
its registered patents, trademarks, trade names and service marks, the
non-preservation of which could reasonably be expected to result in a Material
Adverse Effect.

     

                   SECTION
5.06. Maintenance of
Properties. (a) Maintain,
preserve and protect all of its material properties and equipment necessary in
the operation of its business in good working order and condition, ordinary wear
and tear excepted; (b) make all necessary repairs and improvements thereto and
renewals and replacements thereof so that the business carried on in connection
therewith may be properly and advantageously conducted in the ordinary course at
all times in the manner and custom of similar businesses; and (c) use the
standard of care typical in the industry in the operation and maintenance of its
facilities.

     

                   SECTION
5.07. Maintenance of
Insurance. Maintain with
financially sound and reputable insurance companies that are not Affiliates of
the Company, or through self insurance, if adequate reserves are maintained with
respect thereto, insurance with respect to its properties and business against
loss or damage of the kinds customarily insured against by Persons engaged in
the same or similar business, of such types (including hazard, business
interruption, public liability and product liability) and in such amounts
(including deductibles and co-insurance, if adequate reserves are maintained
with respect thereto) as are customarily carried under similar circumstances by
such other Persons.

     

                   SECTION
5.08. Compliance with Laws.
Comply with the requirements of
all applicable laws, rules, regulations and orders of any Governmental
Authority, the breach of which could reasonably be expected to result in a
Material Adverse Effect, including, without limitation, the rules and
regulations of the Board.

     

                   SECTION
5.09. Books and Records.
Maintain adequate records and
proper books of record and account in which full entries, true and correct in
all material respects, will be made in a manner to enable the preparation of
financial statements in accordance with GAAP, and which shall reflect all
financial transactions of the Company and each Subsidiary and matters involving
the assets and business of the Company and each Subsidiary.

     

                   SECTION
5.10. Inspection Rights.
At any time during normal
business hours, upon reasonable advance notice and subject to compliance by the
Facility Agent with the Company’s normal confidentiality requirements, permit
the Facility Agent or any of its agents or representatives to examine the books
and records of the Company and the Subsidiaries and to visit the properties of
the Company and the Subsidiaries and to discuss the affairs, finances and
accounts of the Company and the Subsidiaries with any of the Company’s executive
officers or, in the presence of a Responsible Officer of the Company or a person
designated in writing by a Responsible Officer of the Company, the Company’s
independent accountants.

     

    

    
    

    70

     

                   SECTION
5.11. Use of Proceeds.
Use the proceeds of the Loans and
the Letters of Credit for the purposes set forth in the recitals hereto, and not
in contravention of any law or of any Loan Document; provided that proceeds of Loans will not be used to
finance any acquisition of Equity Interests in a public company preceded by, or
consummated pursuant to, an unsolicited tender offer or proxy contest initiated
by or on behalf of the Company or any Subsidiary if any Lender shall object on
the grounds that financing such acquisition would be likely to involve such
Lender in a conflict of interest or risk material damage to a significant client
relationship of such Lender. 

     

                   SECTION
5.12. Environmental Laws.
Comply in all material respects
with the requirements of all applicable Environmental Laws, provide to the
Lenders all documentation in connection with such compliance that the Lenders
may reasonably request.

     

                   SECTION
5.13. Company Ratings.
Arrange for an annual
reassessment and review of the ratings by S&P and Moody’s of the Index Debt
and maintain ratings by S&P and Moody’s of the Index Debt at all times.

     

                   SECTION
5.14. Cash Pool Arrangements. Maintain Cash Pool Availability under each
Cash Pool Arrangement in excess of the Cash Pool Obligations outstanding
thereunder.

     

    ARTICLE
VI

     

    Negative Covenants

     

                   So
long as any Lender shall have any Commitment hereunder, any Loan or other
Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit
shall remain outstanding, the Company shall not, nor shall it permit any
Subsidiary to, directly or indirectly:

     

                   SECTION
6.01. Liens. Create, incur, assume or suffer to exist any
Lien upon any of its property, assets or revenues, whether now owned or
hereafter acquired, other than the following (collectively, “Permitted Liens”):

     

         (a) Liens created under any Loan Document;

     

         (b) Liens existing on the
date of this Agreement and listed on Schedule 6.01, and extensions, renewals and replacements
thereof to the extent such extensions, renewals and replacements secure only the
obligations secured by such original Liens and extend only to the assets covered
by such original Liens;

     

         (c) Liens imposed by law for
Taxes (i) not yet due or (ii) which are being contested in compliance with
Section 5.04;

     

    

    
    

    71

     

         (d) carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens
arising in the ordinary course of business which are not yet due and payable or
the payment of which is not at the time required;

     

         (e) pledges or deposits in
the ordinary course of business in connection with workers’ compensation,
unemployment insurance and other social security legislation, other than any
Lien imposed by ERISA;

     

         (f) deposits to secure (or
obtain letters of credit that secure) the performance of tenders, statutory
obligations, surety bonds, appeal bonds, bids, leases, performance bonds,
purchase, construction or sales contracts and other similar obligations, in each
case not incurred or made in connection with the borrowing of money, the
obtaining of advances or credit or the payment of the deferred purchase price of
property;

     

         (g) leases or subleases
granted to others, easements, rights-of-way, restrictions (including zoning
restrictions) and other similar encumbrances affecting real property which, in
the aggregate could not result in a Material Adverse Effect;

     

         (h) Liens securing judgments
for the payment of money not constituting an Event of Default under Section
7.01(h) or securing appeal or other surety bonds related to such judgments,
unless the judgment it secures shall not, within 60 days after the entry
thereof, have been discharged or execution thereof stayed pending appeal, or
shall not have been discharged within 60 days after the expiration of any
stay;

     

         (i) Liens securing leases;

     

         (j) bankers’ liens or set-off
rights of depositary banks or securities intermediaries arising in the ordinary
course of business;

     

         (k) Liens on cash of
Subsidiaries on deposit with any Cash Pool Bank securing Cash Pool Obligations
owed to such Cash Pool Bank;

     

         (l) Liens in favor of the New
Notes Trustee deemed to exist on any proceeds of Refinancing Notes held in a
Designated Account; and

     

         (m) Liens not expressly
permitted by clauses (a) through (k) above securing or deemed to exist in
connection with Priority Indebtedness permitted under Section 6.03; provided that such Liens shall not secure any other
obligations (other than principal, interest, fee, expense reimbursement,
indemnity and similar obligations associated with such permitted Priority
Indebtedness).

     

                   SECTION
6.02. Investments.
Make any Investments,
except:

     

         (a) Investments held by the
Company or any Subsidiary in the form of Eligible Investments;

     

    

    
    

    72

     

         (b) Investments of the
Company in any Subsidiary and Investments of any Subsidiary in the Company or in
another Subsidiary;

     

         (c) Investments consisting of
extensions of credit in the nature of accounts receivable or notes receivable
arising from the grant of trade credit in the ordinary course of business, and
Investments received in satisfaction or partial satisfaction thereof from
financially troubled account debtors to the extent reasonably necessary in order
to prevent or limit loss;

     

         (d) Investments constituting Permitted Acquisitions;

     

         (e) Investments (including by
the purchase of Equity Interests) (other than Investments listed on Schedule 6.02 hereto, such Investments being permitted by
clause (g) below) by the Company in any Person which is not a Subsidiary;
provided that such entities are engaged in a business
which is related to the business of the Company, and provided further that the aggregate amount of all Investments
made pursuant to this paragraph, calculated at the time of the incurrence of
each such Investment, is in an amount not in excess of 10.0% of the Consolidated
Tangible Assets of the Company and the Subsidiaries;

     

         (f) Investments in the
Company’s benefits protection trust, established for the purpose of satisfying
certain supplemental retirement benefit obligations for eligible executives in
the event of a change of control of the Company, consistent with past practices;
and

     

         (g) Investments not otherwise
specified in clauses (a) through (f) hereof that are described on Schedule 6.02 hereto.

     

                   SECTION
6.03. Priority
Indebtedness. Permit the
aggregate Priority Indebtedness (excluding (a) the Priority Indebtedness listed
on Schedule 6.03 and extensions, renewals and replacements
thereof to the extent such extensions, renewals and replacements (i) do not
increase the outstanding principal amount thereof, (ii) do not result in an
earlier maturity date or decreased weighted average life thereof and (iii) are
not secured by any Liens other than those permitted by Section 6.01(b), and (b)
the Existing Notes, so long as the Company shall redeem the Existing Notes on or
before July 31, 2010) of the Company and the Subsidiaries at any time to exceed
7.5% of Consolidated Net Tangible Assets as of the most recent fiscal quarter
end of the Company.

     

    

    
    

    73

     

                   SECTION 6.04.
Fundamental Changes.
Merge, dissolve, liquidate, consolidate
with or into another Person, or Dispose of (whether in one transaction or in a
series of transactions) all or substantially all of its assets (whether now
owned or hereafter acquired) to or in favor of any Person or purchase or
otherwise acquire all or substantially all of the assets of any Person (or any
division thereof) whether in one transaction or a series of transactions, except
that, so long as no Default exists or would result
therefrom:

     

         (a) any US Subsidiary may
merge with (i) the Company; provided that the Company shall be the continuing or
surviving Person or (ii) any one or more other US Subsidiaries;

     

         (b) any Foreign Subsidiary
may merge with any one or more other Foreign Subsidiaries;

     

         (c) any Subsidiary may
Dispose of all or substantially all its assets (upon voluntary liquidation or
otherwise) to the Company or to another Subsidiary;

     

         (d) the Company and any
Subsidiary may make Investments permitted under Section 6.02 and Permitted
Acquisitions; and

     

         (e) the Company may merge
with and into a US Subsidiary; provided that (i) the Company shall notify the
Facility Agent not less than thirty days prior to such event and (ii) the
surviving entity shall assume the obligations of the merged entity pursuant to
this Agreement or any of the other Loan Documents and shall execute such
documents and agreements as may be reasonably required by the Facility
Agent.

     

                   SECTION
6.05. Dispositions.
Make any Disposition or enter
into any agreement to make any Disposition, except:

     

         (a) Dispositions of
properties or assets no longer used or useful in the conduct of their respective
businesses;

     

         (b) Dispositions of inventory in the ordinary course of
business;

     

         (c) Dispositions of property
by the Company or any Subsidiary to the Company or to a Subsidiary;

     

         (d) Dispositions of all or
substantially all the assets of the Company or a Subsidiary permitted by Section
6.04;

     

         (e) Dispositions of notes,
accounts receivable or other obligations owing to the Company or any Subsidiary
of the Company, with or without recourse, including for collections in the
ordinary course of business;

     

         (f) the making of Investments
permitted by Section 6.02 and the making of Restricted Payments permitted by
Section 6.06; and

     

    

    
    

    74

     

         (g) Dispositions by the
Company and the Subsidiaries not otherwise permitted under this Section;
provided that (i) at the time of each such
Disposition, no Default shall exist or would result from such Disposition and
(ii) the aggregate book value of all property Disposed of in reliance on this
clause (g) in any Fiscal Year shall not exceed the amount expressed in dollars
which is equal to 15% of the aggregate book value of the assets of the Company
and the Subsidiaries on a consolidated basis calculated at the time such
Disposition is made;

     

    provided, however, that any Disposition pursuant to the
foregoing clauses (other than clause (c)) shall be for at least fair market
value.

     

                   SECTION
6.06. Restricted Payments.
If a Default shall have occurred
and is continuing, declare any dividend on, or make any payment on account of,
or set apart assets for a sinking or other analogous fund for, the purchase,
redemption, defeasance, retirement or other acquisition of any shares or any
class of stock of the Company whether now or hereafter outstanding, or make any
other distribution in respect thereof, either directly or indirectly, whether in
cash, securities or property or in obligations of the Company or in any
combination thereof (each of the foregoing being a “Restricted Payment”).

     

                   SECTION
6.07. Change in Nature of
Business. Engage in any
material line of business which is substantially different (i) from those lines
of business conducted by the Company and the Subsidiaries on the date of this
Agreement and (ii) from any business substantially related or incidental to
those lines of business conducted by the Company and the Subsidiaries on the
date of this Agreement.

     

                   SECTION
6.08. Transactions with
Affiliates. Enter into any
transaction of any kind with any Affiliate of the Company, except in the
ordinary course of and pursuant to the reasonable requirements of the Company’s
or any of the Subsidiaries’ business and on fair and reasonable terms
substantially as favorable to the Company or such Subsidiary as would be
obtainable by the Company or such Subsidiary at the time in a comparable arm’s
length transaction with a Person other than an Affiliate; provided that the foregoing restriction shall not
apply to (i) transactions among the Company and the Subsidiaries, (ii) the tax
sharing agreements set forth on Schedule 3.11 hereto and (iii) Restricted Payments
permitted under Section 6.06.

     

                   SECTION
6.09. Burdensome Agreements. Enter into any agreement, instrument or
undertaking (other than this Agreement or any other Loan Document) that limits
the ability (a) of any Subsidiary to pay a dividend to, to make a distribution
to or to repurchase, redeem, defease or retire any Equity Interests in any
Subsidiary held by, the Company or to otherwise transfer property to the
Company, (b) of any Subsidiary to Guarantee the Indebtedness of the Company or
(c) the Company or any Subsidiary to create, incur or permit to exist any Lien
upon any of its assets to secure the Obligations; provided that the foregoing shall not apply to
restrictions and conditions contained in indentures or other instruments
pursuant to which the Company has issued or may issue senior notes which
condition the ability of the Company and the Subsidiaries to grant Liens to
secure the Obligations on the equal and ratable securing of such senior notes
(including restrictions and conditions of the sort contained in the New Notes
Indenture or the Existing Indenture).

     

    

    
    

    75

     

                   SECTION
6.10. Use of Proceeds. Use the proceeds of any Loan or any
Letter of Credit, whether directly or indirectly, and whether immediately,
incidentally or ultimately, to purchase or carry margin stock (within the
meaning of Regulation U of the Board) or to extend credit to others for the
purpose of purchasing or carrying margin stock or to refund indebtedness
originally incurred for such purpose.

     

                   SECTION
6.11. Financial Covenants.
(a) Permit the Consolidated Net
Interest Coverage Ratio as of the end of any fiscal quarter of the Company to be
less than 3.50 to 1.00.

     

         (b) Permit the Consolidated Leverage Ratio at
any time to be greater than 3.50 to 1.00.

     

                   SECTION
6.12. Hazardous Materials.
Except to the extent failures to
do so could not, individually or in the aggregate, reasonably be expected to
result in a Material Adverse Effect, cause or permit any of its properties or
assets to be used to generate, manufacture, refine, transport, treat, store,
handle, dispose of, transfer, produce or process Hazardous Materials, except in
compliance with all applicable Federal, state and local laws or regulations, or
cause or permit, as a result of any intentional or negligent act or omission on
the part of the Company or any of its Subsidiaries, a release of Hazardous
Materials onto such property or asset or onto any other property, except in
compliance with such laws and regulations.

     

                   SECTION
6.13. Certain Agreements,
Amendment and Waivers. Enter into, amend or waive any provision of any agreement, instrument or
undertaking evidencing or related to Indebtedness of the Company, if such
agreement, instrument or undertaking (after giving effect to any such amendment
or waiver, as applicable) would contain any financial covenant that would be
more restrictive than any financial covenant contained in this
Agreement.

     

    ARTICLE
VII

     

    Events of Default

     

                   SECTION
7.01. Events of
Default. Any of the
following shall constitute an “Event of Default”:

     

         (a) Non-Payment. The Company fails to pay (i) when and as
required to be paid herein, any amount of principal of any Loan or any LC
Disbursement, or (ii) within five days after the same becomes due, any interest
on any Loan or on any LC Disbursement, or any fee due hereunder, or any other
amount payable hereunder or under any other Loan Document; or

     

    

    
    

    76

     

    
           (b) Specific Covenants. The Company fails to perform or observe any
term, covenant or agreement contained in any of Section 5.01, 5.02, 5.03, 5.05,
5.10 or 5.11 or Article VI; or

       

           (c) Other Defaults. The Company fails to perform or observe any
other covenant or agreement (not specified in subsection (a) or (b) above)
contained in any Loan Document on its part to be performed or observed and such
failure continues unremedied for 30 days; or

       

           (d) Representations and
Warranties. Any
representation, warranty, certification or statement of fact made or deemed made
by or on behalf of the Company herein, in any other Loan Document or in any
document delivered in connection herewith or therewith shall be incorrect or
misleading in any material respect when made or deemed made; or

       

           (e) Cross-Default. (i) The Company or any Subsidiary (A) fails
to make any payment when due (whether by scheduled maturity, required
prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness
or Guarantee (other than Indebtedness hereunder and Indebtedness under Swap
Contracts) having an aggregate principal amount (including undrawn committed or
available amounts and including amounts owing to all creditors under any
combined or syndicated credit arrangement) of more than the Threshold Amount, or
(B) fails to observe or perform any other agreement or condition relating to any
such Indebtedness or Guarantee or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event occurs, the effect
of which default or other event is to cause, or to permit the holder or holders
of such Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a
trustee or agent on behalf of such holder or holders or beneficiary or
beneficiaries) to cause, with the giving of notice if required, such
Indebtedness to be demanded or to become due or to be repurchased, prepaid,
defeased or redeemed (automatically or otherwise), or an offer to repurchase,
prepay, defease or redeem such Indebtedness to be made, prior to its stated
maturity, or such Guarantee to become payable or cash collateral in respect
thereof to be demanded; or (ii) there occurs under any Swap Contract an early
termination date (however defined in such Swap Contract) resulting from (A) any
event of default under such Swap Contract as to which the Company or any
Subsidiary is the defaulting party (however defined in such Swap Contract) or
(B) any termination event (however defined in such Swap Contract) under such
Swap Contract as to which the Company or any Subsidiary is an affected party
(however defined in such Swap Contract) and, in either event, the Swap
Termination Value owed by the Company or such Subsidiary as a result thereof is
greater than the Threshold Amount; or

       

    

    

    
    

    77

     

    
      
             (f) Insolvency Proceedings,
Etc. An involuntary
proceeding shall be commenced or an involuntary petition shall be filed seeking
(i) liquidation, reorganization or other relief in respect of the Company or any
Subsidiary or its debts, or of a substantial part of its assets, under any
Federal, state or foreign bankruptcy, insolvency, receivership or similar law
now or hereafter in effect or (ii) the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for the Company or any
Subsidiary or for a substantial part of its assets, and, in any such case, such
proceeding or petition shall continue undismissed for 60 days or an order or
decree approving or ordering any of the foregoing shall be entered; or the
Company or any Subsidiary shall (i) voluntarily commence any proceeding or file
any petition seeking liquidation, reorganization or other relief under any
Federal, state or foreign bankruptcy, insolvency, receivership or similar law
now or hereafter in effect, (ii) consent to the institution of, or fail to
contest in a timely and appropriate manner, any proceeding or petition described
in clause (h) of this Article, (iii) apply for or consent to the appointment of
a receiver, trustee, custodian, sequestrator, conservator or similar official
for the Company or any Subsidiary or for a substantial part of its assets, (iv)
file an answer admitting the material allegations of a petition filed against it
in any such proceeding, (v) make a general assignment for the benefit of
creditors or (vi) take any action for the purpose of effecting any of the
foregoing; or

      

       

           (g) Inability to Pay Debts. The Company or any Subsidiary shall become
unable, admit in writing its inability or fail generally to pay its debts as
they become due; or

       

           (h) Judgments. There is entered against the Company or any
Subsidiary (i) a final judgment or order for the payment of money in an
aggregate amount exceeding the Threshold Amount (to the extent not covered by
independent third-party insurance as to which the insurer does not dispute
coverage) or (ii) any one or more non-monetary final judgments that result, or
could reasonably be expected to result, individually or in the aggregate, in a
Material Adverse Effect and, in either case, (A) enforcement proceedings are
commenced by any creditor upon such judgment or order or (B) there is a period
of 30 consecutive days during which a stay of enforcement of such judgment, by
reason of a pending appeal or otherwise, is not in effect; or 

       

           (i) ERISA. (i) An ERISA Event occurs with respect to a
Plan or Multiemployer Plan which
has resulted or could reasonably be expected to result in liability of the
Company under Title IV of ERISA to the Plan, Multiemployer Plan or the PBGC in
an aggregate amount in excess of the Threshold Amount, or (ii) the Company or
any ERISA Affiliate fails to pay when due, after the expiration of any
applicable grace period, any installment payment with respect to its withdrawal
liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate
amount in excess of the Threshold Amount; or

       

           (j) Invalidity of Loan
Documents. Any material
provision of any Loan Document, at any time after its execution and delivery and
for any reason other than as expressly permitted hereunder or thereunder or
satisfaction in full of all the Obligations, ceases to be in full force and
effect; or the Company contests in any manner the validity or enforceability of
any provision of any Loan Document; or the Company denies that it has any or
further liability or obligation under any Loan Document, or purports to revoke,
terminate or rescind any provision of any Loan Document; or 

       

           (k) Change of Control. There occurs any Change of
Control.

       

    

    

    
    

    78

     

                   SECTION 7.02. Remedies Upon
Event of Default. If any
Event of Default occurs and is continuing unremedied, the Facility Agent may,
and at the request of the Required Lenders shall, take any or all of the
following actions:

     

         (a) declare the Commitment of
each Lender to make Loans and any obligation of the Issuing Bank to make Letter
of Credit Extensions to be terminated, whereupon such Commitments and obligation
shall be terminated; 

     

         (b) declare the unpaid
principal amount of all outstanding Loans, all interest accrued and unpaid
thereon, and all other amounts owing or payable hereunder or under any other
Loan Document to be immediately due and payable, without presentment, demand,
protest or other notice of any kind, all of which are hereby expressly waived by
the Company; 

     

         (c) require that the Company
Cash Collateralize the LC Exposure (in an amount equal to the then Outstanding
Amount thereof); and 

     

         (d) exercise on behalf of
itself and the Lenders all rights and remedies available to it and the Lenders
under the Loan Documents; 

     

    provided, however, that upon the occurrence of an actual or
deemed entry of an order for relief with respect to the Company or any
Subsidiary under the Bankruptcy Code of the United States, the obligation of
each Lender to make Loans and any obligation of the Issuing Bank to make Letter
of Credit Extensions shall automatically terminate, the unpaid principal amount
of all outstanding Loans and all interest and other amounts as aforesaid shall
automatically become due and payable, and the obligation of the Company to Cash
Collateralize the LC Exposure as aforesaid shall automatically become effective,
in each case without further act of the Facility Agent or any Lender.

     

                   SECTION
7.03. Application of Funds.
After an Event of Default, any
amounts received on account of the Obligations shall be applied by the Facility
Agent in the following order:

     

                   First, to payment of that portion of the
Obligations constituting fees, indemnities, expenses and other amounts
(including fees, charges and disbursements of counsel to the Facility Agent and
amounts payable under Article VIII) payable to the Facility Agent in its
capacity as such;

     

                   Second, to payment of that portion of the
Obligations constituting fees, indemnities and other amounts (other than
principal and interest) payable to the Lenders and the Issuing Bank (including
fees, charges and disbursements of counsel to the respective Lenders and the
Issuing Bank (including fees and time charges for attorneys who may be employees
of any Lender or the Issuing Bank) and other amounts payable under Article II),
ratably among them in proportion to the amounts described in this clause Second
payable to them;

     

    

    
    

    79

     

                   Third, to payment of that portion of the
Obligations constituting accrued and unpaid interest on the Loans, LC
Disbursements and other Obligations, ratably among the Lenders and the Issuing
Bank in proportion to the respective amounts described in this clause Third
payable to them;

     

                   Fourth, to payment of that portion of the
Obligations constituting unpaid principal of the Loans and LC Disbursements,
ratably among the Lenders and the Issuing Bank in proportion to the respective
amounts described in this clause Fourth held by them; 

     

                   Fifth, to the Facility Agent for the account of the
Issuing Bank, to Cash Collateralize that portion of LC Exposure comprised of the
aggregate undrawn amount of Letters of Credit; and 

     

                   Last, the balance, if any, after all of the
Obligations have been indefeasibly paid in full, to the Company or as otherwise
required by law. 

     

    Subject to Section
2.05(j), amounts used to Cash Collateralize the aggregate undrawn amount of
Letters of Credit pursuant to clause Fifth above shall be applied to satisfy
drawings under such Letters of Credit as they occur. If any amount remains on
deposit as cash collateral after all Letters of Credit have either been fully
drawn or expired, such remaining amount shall be applied to the other
Obligations, if any, in the order set forth above.

     

    ARTICLE
VIII

     

    The Agents

     

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

     

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

     

    

    
    

    80

     

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

     

                   Each Agent shall be entitled to rely upon, and
shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing believed
by it to be genuine and to have been signed or sent by the proper Person. Each
Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any
liability for relying thereon. Each Agent may consult with legal counsel (who
may be counsel for the Company), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it
in accordance with the advice of any such counsel, accountants or
experts.

     

                   Each
Agent may perform any of and all its duties and exercise its rights and powers
by or through any one or more sub-agents appointed by it. Each Agent and any
such sub-agent may perform any and all its duties and exercise its rights and
powers through its respective Related Parties. The exculpatory provisions of the
preceding paragraphs and the provisions of Section 9.03 shall apply to any such
sub-agent and to the Related Parties of each Agent and any such sub-agent, and
shall apply to their respective activities in connection with the syndication of
the credit facilities provided for herein as well as activities as
Agent.

     

    

    
    

    81

     

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

     

                   Each Lender acknowledges that it has,
independently and without reliance upon any Agent or any other Lender and based
on such documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon any Agent or
any other Lender and based on such documents and information as it shall from
time to time deem appropriate, continue to make its own decisions in taking or
not taking action under or based upon this Agreement, any other Loan Document or
any related agreement or any document furnished hereunder or thereunder.

     

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

     

    ARTICLE
IX

     

    Miscellaneous

     

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

     

         (i) if to the Company, to it
at Pall Corporation, 25 Harbor Park Drive, Port Washington, NY 11050, Attention
of General Counsel (Facsimile No. (516) 801-9780), with a copy to the Chief
Financial Officer (Facsimile No. (516) 801-9780);

     

         (ii) if to the Facility Agent,
the Issuing Bank or the Swingline Lender, to JPMorgan Chase Bank, N.A., Loan and
Agency Services Group, 10 South Dearborn , Floor 07, Chicago, Illinois
60603-2003, Attention of Teresita R. Siao (Facsimile No. (888) 266-8058), with a copy to JPMorgan Chase Bank, N.A.,
395 N. Service Road, Suite 302, Melville, New York 11747, Attention of Alicia T.
Schreibstein (Facsimile No. (631) 755-5184);

     

    

    
    

    82 

     

         (iii) if to the London Agent, to J. P. Morgan Europe Limited, 125 London Wall,
London EC2Y 5AJ, Attention of Agency Department, James Beard (Facsimile No.
44-207-777-2360), with a copy to the Facility Agent as provided under clause
(ii) above; and

     

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

     

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

     

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

     

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

     

                   (b) None of this Agreement, any other Loan
Document or any provision hereof or thereof may be waived, amended or modified
except, in the case of this Agreement or any other Loan Document, pursuant to an
agreement or agreements in writing entered into by the Company and the Required
Lenders; provided that no such agreement shall (i) increase the
Commitment of any Lender without the written consent of such Lender, (ii) reduce
the principal amount of any Loan or LC Disbursement or reduce the rate of
interest thereon, or reduce any fees payable hereunder, without the written
consent of each Lender affected thereby, (iii) postpone the maturity of any
Loan, or the required date of reimbursement of any LC Disbursement, or any date
for the payment of any interest or fees payable hereunder, or reduce the amount
of, waive or excuse any such payment, or postpone the scheduled date of
expiration of any Commitment, without the written consent of each Lender
affected thereby, (iv) change Sections 2.16(b), 2.16(c) or 7.03 in a manner that
would alter the pro rata sharing of payments required thereby, without the
written consent of each Lender, and (v) change any of the provisions of this
Section or the percentage voting requirements set forth in the definitions of
“Required Lenders” or “Alternative Currency” or any other provision of any Loan Document
specifying the number or percentage of Lenders required to waive, amend or
modify any rights thereunder or make any determination or grant any consent
thereunder, without the written consent of each Lender; provided further that no such agreement shall amend, modify or
otherwise affect the rights or duties of any Agent, the Issuing Bank or the
Swingline Lender without the prior written consent of such Agent, the Issuing
Bank or the Swingline Lender, as the case may be. 

     

    

    
    

    83 

     

                   SECTION
9.03. Expenses; Indemnity; Damage Waiver.
(a) The Company shall pay (i) all reasonable,
documented out-of-pocket expenses incurred by the Agents, the Arrangers and
their respective Affiliates, including the reasonable, documented fees, charges
and disbursements of counsel for the Agents, in connection with the syndication
of the credit facilities provided for herein, the preparation, execution,
delivery and administration of the Loan Documents or any amendments,
modifications or waivers of the provisions thereof (whether or not the
transactions contemplated hereby or thereby shall be consummated), (ii) all
reasonable out-of-pocket expenses incurred by the Issuing Bank in connection
with the issuance, amendment, renewal or extension of any Letter of Credit or
any demand for payment thereunder and (iii) all documented out-of-pocket
expenses incurred by the Agents, the Arrangers, the Issuing Bank or any Lender,
including the fees, charges and disbursements of any counsel for the Agents, the
Issuing Bank or any Lender, in connection with the enforcement or protection of
its rights in connection with the Loan Documents, including its rights under
this Section, or in connection with the Loans made or Letters of Credit issued
hereunder, including all such documented out-of-pocket expenses incurred during
any workout, restructuring or negotiations in respect of such Loans or Letters
of Credit. 

     

                   (b) The Company shall indemnify the Agents,
the Arrangers, the Issuing Bank and each Lender, and each Related Party of any
of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless
from, any and all losses, claims, damages, liabilities and related expenses,
including the documented fees, charges and disbursements of any counsel for any
Indemnitee, incurred by or asserted against any Indemnitee arising out of, in
connection with, or as a result of (i) the syndication of the credit facilities
provided for herein, the preparation, execution, delivery or administration of
the Loan Documents or any agreement or instrument contemplated thereby, the
performance by the parties thereto of
their respective obligations thereunder or the consummation of the Transactions
or any other transactions contemplated thereby, (ii) any Loan or Letter of
Credit or the use of the proceeds therefrom (including any refusal by the
Issuing Bank to honor a demand for payment under a Letter of Credit if the
documents presented in connection with such demand do not strictly comply with
the terms of such Letter of Credit), (iii) any actual or alleged presence or
Release of Hazardous Materials on or from any property currently or formerly
owned or operated by the Company or any of the Subsidiaries, or any
Environmental Liability related in any way to the Company or any of the
Subsidiaries or (iv) any actual or prospective claim, litigation, investigation
or proceeding relating to any of the foregoing, whether based on contract, tort
or any other theory and regardless of whether any Indemnitee is a party thereto
and regardless of whether such matter is initiated by a third party or by the
Company or any Affiliate thereof; provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or wilful misconduct of such Indemnitee. 

     

    

    
    

    84 

     

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

     

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

     

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

     

    

    
    

    85 

     

                   SECTION
9.04. Successors and
Assigns. (a) The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted hereby
(including any Affiliate of the Issuing Bank that issues any Letter of Credit),
except that (i) the Company may not assign or otherwise transfer any of its
rights or obligations hereunder or under any other Loan Document without
the prior written consent of each Lender (and any attempted assignment or
transfer by the Company without such consent shall be null and void) and (ii) no
Lender may assign or otherwise transfer its rights or obligations hereunder
except in accordance with this Section. Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby (including any
Affiliate of the Issuing Bank that issues any Letter of Credit), Participants
(to the extent provided in paragraph (c) of this Section) and, to the extent
expressly contemplated hereby, the Related Parties of each of the Agents, the
Issuing Bank and the Lenders) any legal or equitable right, remedy or claim
under or by reason of this Agreement. 

     

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

     

              (A) the Company; provided that no consent of the Company shall be
required for an assignment to a Lender, an Affiliate of a Lender, an Approved
Fund or, if an Event of Default has occurred and is continuing, any other
assignee; and

     

              (B) the Facility Agent; and

     

              (C) the Issuing Bank; and

     

              (D) the Swingline Lender. 

     

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

     

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

     

              (B) each partial assignment shall be made as an assignment of a proportionate
part of all the assigning Lender’s rights and obligations under this
Agreement; 

     

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

     

    

    
    

    86 

     

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

     

              (E) the assignee shall not bear a relationship to the Company described in
Section 108(e)(4) of the Code. 

     

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

     

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

     

         (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv)
of this Section, from and after the effective date specified in each Assignment
and Assumption the assignee thereunder shall be a party hereto and, to the
extent of the interest assigned by such Assignment and Assumption, have the
rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Assumption, be released from its obligations under this Agreement
(and, in the case of an Assignment and Assumption covering all of the assigning
Lender’s rights and obligations under this Agreement, such Lender shall cease to
be a party hereto but shall continue to be entitled to the benefits of Sections
2.14, 2.15, 2.16 and 9.03). Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this Section 9.04
shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with paragraph (c) of
this Section. 

     

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

     

    

    
    

    87 

     

         (v) Upon its receipt of a duly completed Assignment and Assumption executed
by an assigning Lender and an assignee, the assignee’s completed Administrative
Questionnaire (unless the assignee shall already be a Lender hereunder), the
processing and recordation fee referred to in paragraph (b) of this Section and
any consent to such assignment required by paragraph (b) of this Section, the
Facility Agent shall record the information contained in such Assignment and
Assumption in the Register. No assignment shall be effective for purposes of
this Agreement unless it has been recorded in the Register as provided in this
paragraph. 

     

                   (c) (i) Any Lender may, without the consent
of, or notice to, the Company, the Facility Agent, the Issuing Bank or the
Swingline Lender, sell participations to one or more banks or other entities (a
“Participant”) in all or a portion of such Lender’s rights
and obligations under this Agreement (including all or a portion of its
Commitment and the Loans owing to it); provided that (A) such Lender’s obligations under this
Agreement shall remain unchanged, (B) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (C) the Company, the Facility Agent, the Issuing Bank and the other Lenders
shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under the Loan Documents. Any agreement or
instrument pursuant to which a Lender sells such a participation shall provide
that such Lender shall retain the sole right to enforce the Loan Documents and
to approve any amendment, modification or waiver of any provision of the Loan
Documents; provided that such agreement or instrument may provide
that such Lender will not, without the consent of the Participant, agree to any
amendment, modification or waiver described in the first proviso to Section
9.02(b) that affects such Participant. Subject to paragraph (c)(ii) of this
Section, the Company agrees that each Participant shall be entitled to the
benefits of Sections 2.14, 2.15 and 2.16 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to paragraph (b) of
this Section. To the extent permitted by law, each Participant also shall be
entitled to the benefits of Section 9.08 as though it were a Lender;
provided such Participant agrees to be subject to
Section 2.17(c) as though it were a Lender. 

     

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

     

    

    
    

    88 

     

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

     

                   (e) Any taxes that would be Other Taxes if not
for being imposed with respect to an assignment or participation (other than an
assignment pursuant to Section 2.18(b)) shall be the responsibility of either
the assigning Lender or the assignee in the case of an assignment or the Lender
or the Participant in the case of a participation, but for the avoidance of
doubt shall not be the responsibility of the Company. 

     

                   SECTION 9.05. Survival. All covenants, agreements, representations and
warranties made by the Company herein, in the other Loan Documents and in the
certificates or other instruments delivered in connection with or pursuant to
this Agreement or any other Loan Document shall be considered to have been
relied upon by the other parties hereto and shall survive the execution and
delivery of the Loan Documents and the making of any Loans and issuance of any
Letters of Credit, regardless of any investigation made by any such other party
or on its behalf and notwithstanding that the Facility Agent, the Issuing Bank
or any Lender may have had notice or knowledge of any Default or incorrect
representation or warranty at the time any credit is extended hereunder, and
shall continue in full force and effect as long as the principal of or any
accrued interest on any Loan or any fee or any other amount payable under this
Agreement is outstanding and unpaid or any Letter of Credit is outstanding and
so long as the Commitments have not expired or terminated. The provisions of
Sections 2.14, 2.15, 2.16 and 9.03 and Article VIII shall survive and remain in
full force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Loans, the expiration or termination
of the Letters of Credit and the Commitments or the termination of this
Agreement or any provision hereof. 

     

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

     

    

    
    

    89 

     

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

     

                   SECTION 9.08. Right of
Setoff. If an Event of
Default shall have occurred and be continuing, each Lender and each of its
Affiliates is hereby authorized at any time and from time to time, to the
fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other obligations at any time owing by such Lender or Affiliate to or for the
credit or the account of the Company against any of and all the obligations of
the Company now or hereafter existing under this Agreement held by such Lender,
irrespective of whether or not such Lender shall have made any demand under this
Agreement and although such obligations may be unmatured. The rights of each
Lender under this Section are in addition to and shall not limit other rights
and remedies (including other rights of setoff) which such Lender may have.

     

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

     

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

     

                   (c) Each party hereto hereby irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do
so, any objection which it may now or hereafter have to the laying of venue of
any suit, action or proceeding arising out of or relating to this Agreement or
any other Loan Document in any court referred to in paragraph (b) of this
Section. Each of the parties hereto hereby irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the maintenance
of such action or proceeding in any such court. 

     

    

    
    

    90 

     

                   (d) Each party to this Agreement irrevocably
consents to service of process in the manner provided for notices in Section
9.01. Nothing in this Agreement or any other Loan Document will affect the right
of any party hereto or thereto to serve process in any other manner permitted by
law. 

     

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

     

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

     

                   SECTION 9.12. Confidentiality. (a) Each of the Agents, the Issuing Bank and the Lenders agrees to
maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its and its Affiliates’ directors, officers,
employees and agents, including accountants, legal counsel and other advisors
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep
such Information confidential), (b) to the extent requested by any regulatory
authority or as required in connection with any pledge or assignment permitted
by Section 9.04(d), (c) to the extent required by applicable laws or regulations
or by any subpoena or similar legal process, (d) to any other party to this
Agreement, (e) in connection with the exercise of any remedies hereunder or any
suit, action or proceeding relating to this Agreement or any other Loan Document
or the enforcement of rights hereunder or thereunder, (f) subject to an
agreement containing provisions substantially the same as those of this Section,
to (i) any assignee of or Participant in, or any prospective assignee of or
Participant in, any of its rights or obligations under this Agreement or (ii)
any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Company and its obligations, (g) with the
consent of the Company or (h) to the extent such Information (i) becomes
publicly available other than as a result of a breach of this Section or (ii)
becomes available to any Agent, the Issuing Bank or any Lender on a nonconfidential basis from a source other than
the Company. For the purposes of this Section, “Information” means all information received from the
Company relating to the Company or its business, other than any such information
that is available to any Agent, the Issuing Bank or any Lender on a
nonconfidential basis prior to disclosure by the Company; provided that, in the case of information received
from the Company after the date hereof, such information is clearly identified
at the time of delivery as confidential. Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered
to have complied with its obligation to do so if such Person has exercised the
same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information. 

     

    

    
    

    91 

     

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

     

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

     

                   SECTION 9.13. Interest Rate Limitation.
Notwithstanding anything
herein to the contrary, if at any time the interest rate applicable to any Loan,
together with all fees, charges and other amounts which are treated as interest
on such Loan under applicable law (collectively the “Charges”), shall exceed the maximum lawful rate (the
“Maximum Rate”) which may be contracted for, charged,
taken, received or reserved by the Lender holding such Loan in accordance with
applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges that would have
been payable in respect of such Loan but were not payable as a result of the
operation of this Section shall be cumulated and the interest and Charges
payable to such Lender in respect of other Loans or periods shall be increased
(but not above the Maximum Rate therefor) until such cumulated amount, together
with interest thereon at the Federal Funds Effective Rate to the date of
repayment, shall have been received by such Lender. 

     

                   SECTION 9.14. Conversion of
Currencies. (a) If, for
the purpose of obtaining judgment in any court, it is necessary to convert a sum
owing hereunder in one currency into another currency, each party hereto agrees,
to the fullest extent that it may effectively do so, that the rate of exchange used shall be that at which
in accordance with normal banking procedures in the relevant jurisdiction the
first currency could be purchased with such other currency on the Business Day
immediately preceding the day on which final judgment is given.

     

    

    
    

    92 

     

                   (b) The obligations of each party hereto in
respect of any sum due to any other party hereto or any holder of the
obligations owing hereunder (the “Applicable Creditor”) shall, notwithstanding any judgment in a
currency (the “Judgment Currency”) other than the currency in which such sum
is stated to be due hereunder (the “Agreement Currency”), be discharged only to the extent that, on
the Business Day following receipt by the Applicable Creditor of any sum
adjudged to be so due in the Judgment Currency, the Applicable Creditor may in
accordance with normal banking procedures in the relevant jurisdiction purchase
the Agreement Currency with the Judgment Currency; if the amount of the
Agreement Currency so purchased is less than the sum originally due to the
Applicable Creditor in the Agreement Currency, the Company agrees, as a separate
obligation and notwithstanding any such judgment, to indemnify the Applicable
Creditor against such loss. The obligations of each party hereto contained in
this Section 9.14 shall survive the termination of this Agreement and the
payment of all other amounts owing hereunder. 

     

                   SECTION 9.15. USA Patriot Act. Each Lender and the Facility Agent (for itself
and not on behalf of any Lender) hereby notifies the Company that pursuant to
the requirements of the Patriot Act, it is required to obtain, verify and record
information that identifies the Company, which information includes the name and
address of the Company and other information that will allow such Lender or the
Facility Agent, as applicable, to identify the Company in accordance with the
Patriot Act. 

     

                   SECTION 9.16. No Fiduciary Duty. The Company, on behalf of itself and the
Subsidiaries, agrees that in connection with all aspects of the transactions
contemplated hereby and any communications in connection therewith, the Company,
the Subsidiaries and their Affiliates, on the one hand, and the Agents, the
Issuing Bank, the Lenders and their Affiliates, on the other hand, will have a
business relationship that does not create, by implication or otherwise, any
fiduciary duty on the part of the Agents, the Issuing Bank, the Lenders or their
Affiliates, and no such duty will be deemed to have arisen in connection with
any such transactions or communications. 

     

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

     

    

    
    

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

     

    
      	PALL CORPORATION,
	 
	by	     	
            	
            	
            
	 	 	 	  /s/ Lisa McDermott
	
            	
            	
            	Name:   	Lisa McDermott
	
            	
            	
            	Title:	Chief Financial Officer and
	
            	
            	
            	
            	Treasurer
	 
	 
	JPMORGAN CHASE BANK, N.A.,
	as Facility Agent, Lender, Swingline
      Lender
	and Issuing Bank,
	 
	by	
            	
            	
            	
            
	
            	
            	
            	/s/ Alicia T. Schreibstein
	
            	
            	
            	Name:	Alicia T. Schreibstein
	
            	
            	
            	Title:	Vice President
	 
	 
	J. P. MORGAN EUROPE
LIMITED,
	as London Agent,
	 
	by	
            	
            	
            	
            
	
            	
            	
            	/s/ Maxine Graves
	
            	
            	
            	Name:	Maxine Graves
	
            	
            	
            	Title:	Associate

    

    

    
    

         Lender signature page to the
Pall Corporation Five-Year Credit
Agreement 

     

     

     

    To approve the Credit
Agreement:

     

    Name of
Lender

     

    BANK OF AMERICA

     

    
      	by	     	
            	
            	
            
	
            	
            	 	/s/ Martha Novak
	
            	
            	
            	Name:   	Martha Novak
	
            	
            	
            	Title:	Senior Vice President

    

    

    
    

    Lender signature page
to the
Pall Corporation Five-Year Credit Agreement 

     

    To approve the Credit
Agreement: 

     

    Name of
Lender

     

    WELLS FARGO BANK, N.A.

     

    
      	by	     	
            	
            	
            
	
            	
            	 	/s/ Robert J. Milas
	
            	
            	
            	Name:   	Robert J. Milas
	
            	
            	
            	Title:	Vice President

    

     

    

    
    

    Lender signature page
to the
Pall Corporation Five-Year Credit Agreement 

     

    To approve the Credit
Agreement: 

     

    Name of Lender

     

    HSBC BANK USA, NATIONAL
ASSOCIATION

     

    
      	by	     	
            	
            	
            
	
            	
            	 	/s/ Christopher J. Mendelsohn
	
            	
            	
            	Name:   	Christopher J. Mendelsohn
	
            	
            	
            	Title:	Senior Vice President

    

     

    

    
    

    Lender signature page
to the 
Pall Corporation Five-Year Credit Agreement 

     

    To approve the Credit
Agreement: 

     

    Name of Lender

     

    SUMITOMO MITSUI BANKING
CORPORATION 

     

    
      	by	      	
            	
            
	
            	
            	 /s/ Yasuhiko
      Imai	 
	
            	
            	 Name: 	Yasuhiko Imai
	
            	
            	 Title:	Group Head 

    

    

    
    

         Lender signature page to the 
Pall Corporation Five-Year Credit
Agreement 

     

    To approve the Credit
Agreement: 

     

    Name of Lender

     

    THE BANK OF
TOKYO-MITSUBISHI UFJ. 

    TRUST COMPANY

    
    

     

    
      	by	      	
            	
            
	
            	
            	 /s/ George
      Stoecklein	 
	
            	
            	 Name: 	George Stoecklein
	
            	
            	 Title:	Vice
President

    

    

    
    

         Lender signature page to the 
Pall Corporation Five-Year Credit
Agreement 

     

    To approve the Credit
Agreement: 

     

    Name of Lender

     

    INTESA SANPAOLO SPA

    
    

     

    
      	by	      	
            	
            
	
            	
            	 /s/ John J.
      Michalisin	 
	
            	
            	 Name: 	John J. Michalisin
	
            	
            	 Title:	First Vice
President

    

     

    For any Lender require a
second signature line: 

    
    

     

    
      	by	      	
            	
            
	
            	
            	 /s/ Francesco Di
      Mario	 
	
            	
            	 Name: 	Francesco Di Mario
	
            	
            	 Title:	First Vice President & Credit
      Manager

    

    

    
    

         Lender signature page to the 
Pall Corporation Five-Year Credit
Agreement 

     

    To approve the Credit
Agreement: 

     

    Name of Lender

     

    BNPP 

    
    

     

    
      	by	      	
            	
            
	
            	
            	 /s/ Angela
      Bentley-Arnold	 
	
            	
            	 Name: 	Angela Bentley-Arnold
	
            	
            	 Title:	Managing
Director

    

     

    For any Lender require a
second signature line: 

    
    

     

    
      	by	      	
            	
            
	
            	
            	 /s/ Berangere
      Allen	 
	
            	
            	 Name: 	Berangere Allen
	
            	
            	 Title:	Vice-President

    

    

    
    

         Lender signature page to the 
Pall Corporation Five-Year Credit
Agreement 

     

    To approve the Credit
Agreement: 

     

    Name of Lender

     

    ING BANK N.V., DUBLIN
BRANCH 

    
    

     

    
      	by	      	
            	
            
	
            	
            	 /s/ Maurice
      Kenny	 
	
            	
            	 Name: 	Maurice Kenny
	
            	
            	 Title:	Director

    

     

    For any Lender require a
second signature line: 

    
    

     

    
      	by	      	
            	
            
	
            	
            	 /s/ Aidan
      Neill	 
	
            	
            	 Name: 	Aidan Neill
	
            	
            	 Title:	Director

    

    

    
    

         Lender signature page to the 
Pall Corporation Five-Year Credit
Agreement

     

    To approve the Credit
Agreement: 

     

    Name of Lender

     

    AUSTRALIA AND NEW
ZEALAND 
BANKING GROUP LIMITED 

    
    

     

    
      	by	      	
            	
            
	
            	
            	 /s/ Robert
      Grillo	 
	
            	
            	 Name: 	Robert Grillo
	
            	
            	 Title:	Director

    

    

    
    

    Lender signature page
to the 
Pall Corporation Five-Year Credit Agreement 

     

    To approve the Credit
Agreement: 

     

    Name of Lender

     

    COMMERZBANK AG, NEW YORK
AND 
GRAND CAYMAN BRANCHES 

    
    

     

    
      	by	      	
            	
            
	
            	
            	 /s/ Diane
      Pockaj	 
	
            	
            	 Name: 	Diane Pockaj
	
            	
            	 Title:	Senior Vice
  President

    

     

    For any Lender require a
second signature line: 

    
    

     

    
      	by	      	
            	
            
	
            	
            	 /s/ Sandy
      Bau	 
	
            	
            	 Name: 	Sandy Bau
	
            	
            	 Title:	Assistant
Treasurer

    

    

    
    

    Schedule 1.01 

     

    
      	Applicable Funding
      Account
	
            
	US$
      Funding:	
            	
            	
            
	Bank
      Name	Swift	Acct
      #	ABA
	JP Morgan
      Chase Bank	CHASUS33	3141073233	021000021
	 
	EURO
      Funding:	
            	
            	
            
	Bank
      Name	Swift	Acct
      #	IBAN
	JP Morgan
      Chase N.A.	CHASGB2L	40709001	GB33CHAS6092420709001

    

    Schedule 1.01 

     

    

    
    

    Schedule 2.01 
Commitments

     

    
      	Name of Lender	
            	Commitment	
            
	  JPMorgan Chase Bank, N.A.	 	$	90,000,000	 
	  Bank of America, N.A.	
            	$	90,000,000	
            
	  Wells Fargo Bank, N.A.	
            	$	65,000,000	
            
	  HSBC Bank USA, N.A.	
            	$	65,000,000	 
	  Sumitomo Mitsui Banking Corporation	
            	$	45,000,000	
            
	  The Bank of Tokyo-Mitsubishi UFJ Trust Company	
            	$	45,000,000	
            
	  Intesa Sanpaolo SpA	
            	$	20,000,000	
            
	  BNP PARIBAS	
            	$	20,000,000	
            
	  ING Bank N.V., Dublin Branch	
            	$	20,000,000	
            
	  Australia and New Zealand Banking Group Limited	
            	$	20,000,000	
            
	  Commerzbank AG, New York and Grand Cayman Branches	 	$	20,000,000	
            
	Total  
      	
            	$	500,000,000	
            

    

    Schedule 2.01

     

    

    
    

    Schedule 2.05

     

    Existing Letters of
Credit

     

    
      	Ref	      	Beneficiary	Date	      	Expiry	      	Amount
	T-250506	
            	Travelers	27-Aug-04	 	31-Jul-11	 	$ 	9,890,000.00
	T-250682	 	HSBC Bank Malaysia	21-Sep-04	
            	23-Nov-10	 	$ 	1,319,000.00
	T-250681	
            	State of NY Dept of Labor	21-Sep-04	
            	23-Sep-10	
            	$ 	75,000.00
	TTTS-640029	
            	Insurance Co. of North America	29-Jul-05	
            	01-Aug-11	
            	$	500,000.00
	TTTS-213901	
            	Nebraska City Power	16-Nov-05	
            	15-May-11	
            	$	130,115.80
	TPTS-719028	
            	Duke Energy Indiana	30-Apr-09	
            	01-Mar-11	
            	$	56,583.00
	CPCS-705457	
            	Bariven, S.A.	05-Nov-09	
            	01-Jul-10	
            	$	129,330.00
	CPCS-796436	
            	Iberdrola Ingenieria	22-Dec-09	
            	31-Dec-10	
            	$	77,516.00
	CPCS-679731	
            	Bariven, S.A.	03-Feb-10	
            	29-Jul-10	
            	$	169,977.00
	CPCS-825829	
            	Bariven, S.A.	24-Feb-10	
            	31-Aug-10	
            	$	240,339.30
	CPCS-709245	
            	Board of County Road
    Commissioners	08-Mar-10	
            	01-Mar-11	
            	$	20,000.00
	CPCS-821980	
            	Bariven, S.A.	30-Mar-10	 	31-Jul-10	
            	$	27,570.92
	CPCS-821147	
            	Bariven, S.A.	30-Mar-10	
            	30-Jul-10	
            	$	18,241.92
	CPCS-829454	
            	Bariven, S.A.	28-Apr-10	
            	01-Oct-10	
            	$ 	297,360.00
	 
	     
      Total	
            	
            	
            	
            	
            	
            	$	12,951,033.94

    

    Schedule 2.05

     

    

    
    

    Schedule 3.09

     

    Environmental
Compliance

     

    As set forth in the financial statements
described in Section 3.05 of the Credit Agreement.

     

    Schedule 3.09

     

    

    
    

    Schedule 3.11

     

    Tax-Sharing
Agreements

     

    None.

     

    Schedule 3.11

     

    

    
    

    Schedule 3.13 

     

    Subsidiaries and Affiliates 

     

    
      	US Subsidiaries:	
            	
            	Active	      	
            	      	
            
	
            	
            	
            	Medsep Corporation	
            	Delaware	
            	
            
	
            	
            	
            	Pall Acquisition LLC	
            	Delaware	
            	
            
	
            	
            	
            	Pall Aeropower Corporation	
            	Delaware	
            	
            
	
            	
            	
            	Pall Biomedical, Inc.	
            	Delaware	
            	
            
	
            	
            	
            	Pall Filtration and Seperations Group inc.	
            	Delaware	
            	
            
	
            	
            	
            	Pall Industrial Membranes, LLC	 	Delaware	
            	
            
	
            	
            	
            	Pall Medical Products, Inc.	
            	Delaware	
            	
            
	
            	
            	
            	Pall Puerto Rico Inc.	
            	Delaware	
            	
            
	
            	
            	
            	Pall-PASS US, LLC	
            	Delaware	
            	
            
	
            	
            	
            	Rochem Separations Systems, Inc.	
            	Delaware	
            	
            
	
            	
            	
            	Pall Microreactor Technologies, Inc.	
            	California	
            	
            
	
            	
            	
            	Russell Associates Inc.	
            	Maryland	
            	
            
	
            	
            	
            	Gelman Sciences Inc.	
            	Michigan	
            	
            
	  
	Foreign Subsidiaries:	
            	
            	Active	
            	
            	
            	
            
	
            	
            	
            	Pall Technologies SA	
            	Argentina	
            	
            
	
            	
            	
            	Pall Australia Pty Ltd	
            	Australia	
            	
            
	
            	
            	
            	Pall Austria Filter Ges.m.b.h.	
            	Austria	
            	
            
	
            	
            	
            	Pall SeitzSchenk Filtertechnik Ges.m.b.h.	
            	Austria	
            	
            
	
            	
            	
            	Pall BVBA	
            	Belgium	
            	
            
	
            	
            	
            	Pall do Brasil Ltda.	
            	Brazil	
            	
            
	
            	
            	
            	Pall (Canada) Limited	
            	Canada	
            	
            
	
            	
            	
            	Pall Filter (Beijing) Co. Ltd.	
            	China	
            	
            
	
            	
            	
            	Filtration & Separations Group SAS	
            	France	
            	
            
	
            	
            	
            	Pall Exekia S.A.	
            	France	
            	
            
	
            	
            	
            	Pall France SAS	
            	France	
            	
            
	
            	
            	
            	Pall Genesystems S.A.	
            	France	
            	
            
	
            	
            	
            	Pall Deutschland Beteilgungs Gmbh	
            	Germany	
            	
            
	
            	
            	
            	Pall Filtersystems GmbH	
            	Germany	
            	
            
	
            	
            	
            	Pall Filtration & Separation GmbH	
            	Germany	
            	
            
	
            	
            	
            	Pall GmbH	
            	Germany	 	
            
	
            	(*)	     	Pall SeitzSchenk Modultechnik GmbH	
            	Germany	
            	Pall Indirect 51%

    

    Schedule 3.13 

     

    

    
    

    
      	                      	Pall Verwaltungsgesellschaft mit beschrankter	    	
            
	 	Haftung	
            	Germany
	
            	Pall Asia International Ltd. (Hong Kong)	
            	Hong Kong
	
            	Pall India Private Ltd	
            	India
	
            	PT Pall Filtration Indonesia	
            	Indonesia
	 	Pall Filtration and Separations SpA	 	Italy
	
            	Pall Italia S.R.L.	
            	Italy
	
            	Nihon Pall Ltd.	
            	Japan
	
            	Pall Luxembourg S.a.r.l.	
            	Luxembourg
	
            	Pall (Malaysia) Sdn Bhd	
            	Malaysia
	
            	Pall Life Sciences Mexico, S. de R.L. de C.V.	
            	Mexico
	
            	Pall Netherlands B.V.	
            	Netherlands
	
            	Pall New Zealand Ltd	
            	New Zealand
	
            	Pall Norge AS	
            	Norway
	
            	Pall (Philippines) Inc.	
            	Philippines
	
            	Pall Poland Limited	
            	Poland
	
            	Pall Life Sciences Puerto Rico, LLC	
            	Puerto Rico
	
            	Pall Eurasia LLC	
            	Russia
	
            	Pall Filtration Pte Ltd	
            	Singapore
	
            	Pall Singapore Taiwan Branch Holding	
            	
            
	
            	Company Pte Ltd	
            	Singapore
	
            	Pall South Africa (Pty) Ltd	
            	South Africa
	
            	Pall Korea Ltd	
            	South Korea
	
            	Pall Espana, S.A.U.	
            	Spain
	
            	Pall Norden AB	
            	Sweden
	
            	Argentaurum AG	 	Switzerland
	
            	Pall (Schweiz) AG	
            	Switzerland
	
            	Pall International Sarl	
            	Switzerland
	
            	Pall Corporation Filtration & Separations	
            	
            
	
            	(Thailand) Ltd	
            	Thailand
	
            	Pall Middle East FZE	
            	UAE
	
            	Pall Europe Limited	
            	UK

    

    2

     

    

    
    

    
    

    
      	 	Inactive	 	 
	 	Gelman Ireland Ltd.	 	Ireland
	 	Gelman Sciences Pty Ltd	 	Australia
	                      	Pall Filtration & Separations Pty Ltd	    	Australia
	
            	Presian Pty Ltd	
            	Australia
	
            	Pall Filtration SAS	
            	France
	
            	D.T. Membranfilter Vertriebs GmbH	
            	Germany
	
            	Pall Export Sales Ltd.	
            	Jamaica
	
            	Pall Mauritius	
            	Mauritius
	
            	Pall Filtration & Separations Holding B.V.	
            	Netherlands
	
            	Cord Chemical Company Ltd	
            	UK
	
            	Pall Filtration & Separations Limited	
            	UK
	
            	Pall Seitz Filterite Limited	
            	UK
	  
	
            	Dormant	
            	
            
	
            	Pall Biomedical Limited	
            	UK
	
            	Pall Euroflow Limited	
            	UK
	  
	Foreign
      Partnerships:     	PLLN CV	
            	Netherlands
	
            	Pall Deutschland Holding GmbH & Co. KG	
            	Germany

    

    
      	Note:	     	
              Except as
      otherwise noted (*), all Subsidiaries (US & Foreign) and both Foreign Partnerships are,
      directly or indirectly, 100% owned by Pall Corporation.

            

    

     

    3 

     

    

    
    

    
      Schedule
3.20 

       

      Cash Pool
Arrangements 

       

      The Cash Pool
Arrangement pursuant to the Cash Pooling Agreement, dated July 10, 2008, by and
among Pall Netherlands B.V., Pall Corporation, the Subsidiaries listed below and
Bank Mendes Gans N.V., as Cash Pool Bank. 

       

      
        	      	
              	      	Subsidiaries	      	Country
	
              	1	
              	NIHON PALL LTD	
              	Japan
	
              	2	
              	PALL (SCHWEIZ) AG	
              	Switzerland
	
              	3	
              	PALL ASIA INTERNATIONAL
LIMITED	
              	Hong Kong
	
              	4	
              	PALL AUSTRIA FILTER GMBH	
              	Austria
	
              	5	
              	PALL BVBA	
              	Belgium
	 	6	
              	PALL CANADA LIMITED	
              	Canada
	
              	7	
              	PALL DEUTSCHLAND HOLDING GMBH CO
      KG	
              	Germany
	
              	8	
              	PALL ESPANA S.A.U.	
              	Spain
	
              	
                9

              	
              	PALL EUROPE LIMITED	
              	United Kingdom
	
              	10	
              	PALL EXEKIA SA	
              	France
	
              	11	 	PALL FILTRATION, SEPERATIONS
    SPA	
              	Italy
	
              	12	
              	PALL FILTRATION PTE LTD	
              	Singapore
	
              	13	
              	PALL FRANCE S.A.	
              	France
	
              	14	
              	PALL GENESYSTEMS	
              	France
	
              	15	
              	PALL INTERNATIONAL SARL	
              	Switzerland
	
              	16	
              	PALL ITALIA S.R.L.	
              	Italy
	
              	17	
              	PALL LIFE SCIENCES PUERTO RICO
    LLC	
              	United States (Puerto Rico)
	
              	18	
              	PALL NETHERLANDS B.V.	
              	Netherlands
	
              	19	
              	PALL NETHERLANDS BV IRELAND
    BRANCH	
              	Ireland
	
              	20	
              	PALL NEW ZEALAND LIMITED	
              	New Zealand
	
              	21	
              	PALL NORDEN AB	
              	Sweden
	
              	22	
              	PALL NORGE AS	 	Norway
	
              	23	
              	PALL POLAND SP Z.O.O.	
              	Poland

      

      Schedule 3.20

       

      

      
      

      Schedule 6.01 

       

      Existing Liens

       

      
        	Debtor	Jurisdiction	Type of Lien	Date of Filing	Secured Party	Collateral
	Medsep Corporation	Delaware	UCC	03/25/2004	American	Leased
    equipment
	
              	Secretary of	
              	
              	Express
    Business	
              
	
              	State	
              	
              	Finance	
              
	Medsep Corporation	Delaware	UCC	07/28/2005	NMHG	Leased
    equipment
	
              	Secretary of	
              	
              	Financial	
              
	
              	State	
              	
              	Services, Inc.	
              
	Medsep Corporation	Delaware	UCC	06/01/2006	Raymond	Specified
	
              	Secretary of	
              	
              	Leasing	equipment
	
              	State	
              	
              	Corporation	 
	Medsep Corporation	Delaware	UCC	01/31/2007	Crown Credit	Specified
	
              	Secretary of	
              	
              	Company	equipment
	
              	State	
              	
              	
              	
              
	Medsep Corporation	Delaware	UCC	12/19/2007	Raymond	Specified
	
              	Secretary of	 	
              	Leasing	equipment
	
              	State	
              	
              	Corporation	
              
	Medsep Corporation	Delaware	UCC	11/11/2008	Raymond	Specified
	
              	Secretary of	
              	 	Leasing	equipment
	
              	State	
              	
              	Corporation	
              

      

      Schedule 6.01 

       

      

      
      

      
        	Debtor	Jurisdiction	Type of Lien	Date of Filing	Secured Party	Collateral
	Pall
      Aeropower	Delaware	UCC	06/07/2004	Citibank,
    N.A.	Accounts
	Corporation	Secretary of	
              	
              	
              	Receivable
    from
	
              	State	
              	
              	
              	United
	
              	
              	
              	
              	
              	Technologies
	
              	
              	
              	
              	
              	Corp.
    purchased
	
              	
              	
              	
              	
              	by
      Citibank, N.A.
	Pall
      Aeropower	Delaware	UCC	04/19/2006	Toyota Motor	Leased
    equipment
	Corporation	Secretary of	 	 	Credit	
              
	
              	State	
              	
              	Corporation	
              
	Pall
      Aeropower	Delaware	UCC	08/06/2008	JPMorgan
    Chase	Accounts
	Corporation	Secretary of	
              	
              	Bank, N.A.	Receivable
    from
	
              	State	
              	
              	
              	SPX
      Corporation
	Pall
      Puerto Rico Inc.	Delaware	UCC	02/27/2006	De Lage
    Landen	Leased
    equipment
	
              	Secretary of	
              	
              	Financial	
              
	
              	State	
              	
              	Services, Inc.	
              
	Gelman Sciences	Delaware	UCC	02/05/2001	Dell
    Financial	Leased
    equipment
	Inc.	Secretary of	
              	
              	Services, LP	
              
	
              	State	
              	
              	
              	
              
	Gelman Sciences	Delaware	UCC	02/08/2001	Dell
    Financial	Leased
    equipment
	Inc.	Secretary of	
              	
              	Services, LP	
              
	
              	State	
              	
              	
              	
              

      

      2 

       

      

      
      

      
        	Debtor	Jurisdiction	Type of Lien	Date of Filing	Secured Party	Collateral
	Gelman Sciences	Delaware	UCC	01/17/2006	Dell
    Financial	Leased
    equipment
	Inc.	Secretary of	
              	
              	Services, LP	
              
	
              	State	
              	
              	
              	
              
	Pall
      Corporation	New York	UCC	06/27/2005	Wells Fargo	Leased
    equipment
	
              	Department
of	
              	
              	Equipment	
              
	
              	State	
              	
              	Finance	
              
	Pall
      Corporation	New York	UCC	08/15/2005	Cummings	Leased
    equipment
	
              	Department
of	
              	
              	Properties,
    LLC	
              
	
              	State	
              	
              	
              	
              
	Pall
      Corporation	New York	UCC	01/05/2006	Wells Fargo	Leased
    equipment
	
              	Department
of	
              	
              	Equipment	
              
	
              	State	 	
              	Finance	
              
	Pall
      Corporation	New York	UCC	04/19/2005	Wells Fargo	Leased
    equipment
	
              	Department
of	
              	
              	Equipment	
              
	
              	State	
              	
              	Finance	
              
	Pall
      Corporation	New York	UCC	10/19/2006	Banc of
    America	Leased
    equipment
	
              	Department
of	
              	
              	Leasing
&	
              
	
              	State	
              	 	Capital, LLC	
              
	Pall
      Corporation	New York	UCC	04/02/2007	Solarcom LLC
      &	Leased
    equipment
	
              	Department
of	
              	
              	Wells Fargo	
              
	
              	State	
              	
              	Equipment	
              
	
              	
              	
              	
              	Finance	  

      

      3 

       

      

      
      

      
        	Debtor	Jurisdiction	Type of Lien	Date of Filing	Secured Party	Collateral
	Pall
      Corporation	New York	UCC	04/25/2007	Abbott	Leased
    equipment
	
              	Department
of	
              	
              	Laboratories
      Inc.	
              
	
              	State	
              	
              	
              	
              
	Pall
      Corporation	New York	UCC	05/09/2007	Canon
    Financial	Leased
    equipment
	
              	Department
of	
              	
              	Services	
              
	
              	State	
              	
              	
              	
              
	Pall
      Corporation	New York	UCC	05/19/2007	Canon
    Financial	Leased
    equipment
	
              	Department
of	
              	
              	Services	
              
	
              	State	
              	
              	
              	
              
	Pall
      Corporation	New York	UCC	06/29/2007	Canon
    Financial	Leased
    equipment
	
              	Department
of	
              	
              	Services	
              
	
              	State	
              	
              	
              	
              
	Pall
      Corporation	New York	UCC	08/06/2007	Canon
    Financial	Leased
    equipment
	
              	Department
of	
              	
              	Services	
              
	
              	State	
              	
              	
              	
              
	Pall
      Corporation	New York	UCC	08/22/2007	Canon
    Financial	Leased
    equipment
	
              	Department
of	
              	 	Services	
              
	
              	State	
              	
              	
              	
              
	Pall
      Corporation	New York	UCC	09/05/2007	Canon
    Financial	Leased
    equipment
	
              	Department
of	
              	
              	Services	
              
	
              	State	
              	
              	
              	
              

      

      4 

       

      

      
      

      
        	Debtor	Jurisdiction	Type of Lien	Date of Filing	Secured Party	Collateral
	Pall
      Corporation	New York	UCC	09/26/2007	Hitachi
    Capital	Leased
    equipment
	
              	Department
of	
              	
              	America
Corp.	
              
	
              	State	
              	
              	
              	
              
	Pall
      Corporation	New York	UCC	12/03/2007	Canon
    Financial	Leased
    equipment
	
              	Department
of	
              	
              	Services	
              
	
              	State	
              	
              	
              	
              
	Pall
      Corporation	New York	UCC	12/14/2007	Canon
    Financial	Leased
    equipment
	
              	Department
of	
              	
              	Services	
              
	
              	State	
              	
              	
              	
              
	Pall
      Corporation	New York	UCC	04/01/2008	Canon
    Financial	Leased
    equipment
	
              	Department
of	
              	
              	Services	
              
	
              	State	
              	
              	
              	
              
	Pall
      Corporation	New York	UCC	12/11/2008	Canon
    Financial	Leased
    equipment
	
              	Department
of	 	
              	Services	
              
	
              	State	
              	
              	
              	
              
	Pall
      Corporation	New York	UCC	12/18/2008	Multivac,
    Inc.	Leased
    equipment
	
              	Department
of	
              	
              	
              	
              
	
              	State	
              	
              	
              	
              
	Pall
      Corporation	New York	UCC	12/20/2008	Xerox	Leased
    equipment
	
              	Department
of	
              	 	Corporation	
              
	
              	State	
              	
              	
              	
              

      

      5 

       

      

      
      

      
        	Debtor	Jurisdiction	Type of Lien	Date of Filing	Secured Party	Collateral
	Pall
      Corporation	New York	UCC	10/27/2009	Canon
    Financial	Leased
    equipment
	
              	Department
of	 	
              	Services	
              
	
              	State	
              	
              	
              	
              
	Pall
      Corporation	New York	UCC	11/17/2009	Canon
    Financial	Leased
    equipment
	
              	Department
of	
              	
              	Services	
              
	
              	State	
              	
              	
              	
              

      

      6 

       

      

      
      

      Schedule 6.02

       

      Other Investments 

       

      
        	
              	
              	
              	
              	
              	
              	Per share	
              	Total
	
              	
              	
              	
              	# Shares	
              	Currency	
              	l/c	
              	fx	
              	
              	US $’s
	Equity:	   	SATAIR	     	100,000.00	     	Danish Krone	    
    	269.50	     	0.177898	    
    	$	4,794,341
	 
	
              	
              	BAXTER (BAX)	
              	20.00	
              	US$	
              	47.22	
              	
              	
              	$	944
	
              	
              	CERUS (CERS)	
              	100.00	
              	US$	
              	3.24	 	 	
              	$	324
	 	
              	DONALDSON CO. INC. (DCI)	
              	240.00	
              	US$	
              	46.30	
              	
              	
              	$	11,112
	
              	
              	ESCO TECHNOLOGIES INC. (ESE)	
              	250.00	
              	US$	
              	30.85	
              	
              	 	$	7,713
	
              	
              	DARA BIOSCIENCES (DARA)	
              	0.75	
              	US$	 	0.43	
              	
              	
              	$	0
	
              	 	MILLIPORE (MIL)	
              	42.00	 	US$	
              	106.15	
              	
              	
              	$	4,458
	
              	
              	PARKER-HANNIFIN (PH)	 	75.00	
              	US$	
              	69.18	
              	
              	
              	$	5,189
	
              	
              	EDWARDS LIFESCIENCE (EW)	
              	2.00	
              	US$	
              	103.08	
              	
              	
              	$	206
	
              	
              	PURE CYCLE CORP (PCYO)	
              	1,554.00	
              	US$	
              	2.94	
              	
              	
              	$	4,569

      

      Reflected at 30 April ’10 Market Value 

       

      Schedule 6.02 

       

      

      
      

      Schedule 6.03

       

      Priority
Indebtedness

       

      
        	Entity	      	Debt Type	      	Maturity	      	FX
      Value	      	B/S Rate	      	Value in
      US$
	Pall Italia	
              	Mortgage	
              	7/2019	
              	€	9,636,417	
              	1.3314	
              	$	12,829,926
	Pall France	
              	Capital Lease	
              	3/2019	
              	€	2,493,006	 	1.3314	
              	$	3,319,188
	Pall France	 	Biosepra Capital Lease	 	5/2011	 	€	405,125	
              	1.3314	 	$	539,383
	Nihon Pall	
              	Capital Leases	
              	Various	 	JPY  	38,629,989	
              	93.93	
              	$	411,255
	 	
              	
              	
              	
              	
              	
              	
              	
              	
              	
              	
              	
              
	
              	
              	
              	
              	
              	
              	
              	
              	
              	
              	
              	$	17,099,751
	 	
              	
              	
              	
              	
              	
              	
              	
              	
              	
              	
              	
              

      

      As of 30 April, 2010

       

      Schedule
6.03

       

      

      
      

      EXHIBIT A 

       

      Form of Assignment and
Assumption 

       

                     This Assignment and Assumption (the
“Assignment and Assumption”) is dated as of the Effective Date set forth
below and is entered into by and between [NAME OF ASSIGNOR] (the “Assignor”) and [NAME OF ASSIGNEE] (the “Assignee”). Capitalized terms used but not defined
herein shall have the meanings given to them in the Credit Agreement identified
below (as amended, the “Credit 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 and
Assumption 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 Credit Agreement, as
of the Effective Date inserted by the Facility Agent as contemplated below (i)
all of the Assignor’s rights and obligations in its capacity as a Lender under
the Credit Agreement and any other documents or instruments delivered pursuant
thereto to the extent related to the amount and percentage interest identified
below of all of such outstanding rights and obligations of the Assignor under
the respective facilities identified below (including any letters of credit and
swingline loans included in such facilities) and (ii) to the extent permitted to
be assigned under applicable law, all claims, suits, causes of action and any
other right of the Assignor (in its capacity as a Lender) against any Person,
whether known or unknown, arising under or in connection with the Credit
Agreement, any other documents or instruments delivered pursuant thereto or the
loan transactions governed thereby or in any way based on or related to any of
the foregoing, including contract claims, tort claims, malpractice claims,
statutory claims and all other claims at law or in equity related to the rights
and obligations sold and assigned pursuant to clause (i) above (the rights and
obligations sold and assigned pursuant to clauses (i) and (ii) above being
referred to herein collectively as the “Assigned Interest”). Such sale and assignment is without
recourse to the Assignor and, except as expressly provided in this Assignment
and Assumption, without representation or warranty by the Assignor.

       

      
        	1.	      	Assignor:	     
    	 	 
	
              	
              	 	
              	
              
	2.	
              	Assignee:	
              	
              	 
	
              	
              	
              	
              	[and is an Affiliate/Approved Fund of
      [identify
      Lender]1]
	
              	
              	 	
              	
              
	3.	 	Company:	
              	Pall Corporation
	
              	
              	 	
              	
              
	4.	 	Facility Agent:	 	JPMorgan Chase Bank, N.A., as the
      facility agent under the Credit Agreement
	
              	
              	 	
              	
              
	5.	
              	Credit Agreement:	
              	The $500,000,000 Credit Agreement dated
      as of July 13, 2010, among Pall Corporation, the Lenders party thereto,
      JPMorgan

      
____________________

           1 Select as
applicable. 

       

      A- 

       

      

      
      

      
        	Chase Bank, N.A., as Facility Agent and J. P. Morgan
    Europe
	Limited, as London Agent

      

      6. Assigned Interest:

       

      
        	Facility
      Assigned	Aggregate
      Amount of	Amount
    of	Percentage
      Assigned of
	
              	Commitments/Loans
      of	Commitment/Loans	Commitment/Loans2
	
              	all
      Lenders	Assigned	
              
	Revolving Facility	$	$	%     

      

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

       

      The Assignee agrees to
deliver to the Facility Agent a completed Administrative Questionnaire in which
the Assignee designates one or more credit contacts to whom all syndicate-level
information (which may contain material non-public information about the Company
and its Related Parties or their respective securities, subject to Section 9.12
of the Credit Agreement) will be made available and who may receive such
information in accordance with the Assignee’s compliance procedures and
applicable laws, including Federal and state securities laws. 

       

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

       

      
        	ASSIGNOR
	 
	[NAME OF ASSIGNOR],

 

        	     	by	     	
              	
              	
              
	
              	
              	
              	 	
              
	
              	
              	
              	
              	Name:  	 
	
              	
              	
              	
              	Title:	 

        	ASSIGNEE
	[NAME OF ASSIGNEE],

      

      
        	     	by	     	
              	
              	
              
	
              	
              	
              	 	
              
	
              	
              	
              	
              	Name:  	 
	
              	
              	
              	
              	Title:	 

      

       

      ____________________ 
     2 Set forth, to at least
9 decimals, as a percentage of the Commitments/Loans of all Lenders
thereunder. 

       

      A- 

       

      

      
      

      [Consented to and]3 Accepted:

       

      
        	JPMORGAN CHASE BANK, N.A., as Facility
Agent,

      

      

        	     	by	     	
              	
              	
              
	
              	
              	
              	 	
              
	
              	
              	
              	
              	Name:  	 
	
              	
              	
              	
              	Title:	 

        	[Consented to]4	 
	
              	[NAME OF RELEVANT PARTY],

        	     	by	     	
              	
              	
              
	
              	
              	
              	 	
              
	
              	
              	
              	
              	Name:  	 
	
              	
              	
              	
              	Title:	 

 

        	[Consented to]5	 
	
              	PALL CORPORATION,

        	     	by	     	
              	
              	
              
	
              	
              	
              	 	
              
	
              	
              	
              	
              	Name:  	 
	
              	
              	
              	
              	Title:	 

      

      ____________________

           3 To be added only if
the consent of the Facility Agent is required by the terms of the Credit
Agreement. 

       

           4 To be
added only if the consent of other parties (e.g., Swingline
Lender, Issuing Bank) is required by the terms of the Credit Agreement.

       

           5 To be
added only if the consent of the Company is required by the terms of the Credit
Agreement.

       

      A- 

       

      
        

      

      
      

      ANNEX 1 

       

      $500,000,000 Pall Corporation Credit Agreement

       

      STANDARD TERMS AND CONDITIONS
FOR
ASSIGNMENT AND ASSUMPTION 

       

           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 Assumption 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 the Credit Agreement or any other Loan Document,
(ii) the execution, legality, validity, enforceability, genuineness, sufficiency
or value of the Loan 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 Loan Document or (iv) the performance or
observance by the Company, any of its Subsidiaries or Affiliates or any other
Person of any of their respective obligations under any Loan 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 Assumption and to consummate the
transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii) it satisfies the requirements, if any, specified in the Credit
Agreement that are required to be satisfied by it in order to acquire the
Assigned Interest and become a Lender, (iii) from and after the Effective Date,
it shall be bound by the provisions of the Credit Agreement as a Lender
thereunder and, to the extent of the Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it has received and/or had the
opportunity to review a copy of the Credit Agreement to the extent it has in its
sole discretion deemed necessary, together with copies of the most recent
financial statements delivered pursuant to Section 5.01(a) or 5.01(b) thereof,
as applicable, and such other documents and information as it has in its sole
discretion deemed appropriate to make its own credit analysis and decision to
enter into this Assignment and Assumption and to purchase the Assigned Interest
on the basis of which it has made such analysis and decision independently and
without reliance on the Facility Agent, the London Agent or any Lender, and (v)
if it is a Foreign Lender, attached to the Assignment and Assumption is any
documentation required to be delivered by it pursuant to the terms of the Credit
Agreement, duly completed and executed by the Assignee and (b) agrees that (i)
it will, independently and without reliance on the Facility Agent or the London
Agent, the Assignor or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Loan Documents and
(ii) it will perform in accordance with their terms all of the obligations which
by the terms of the Loan Documents are required to be performed by it as a
Lender. 

       

           2. Payments. From and after the Effective Date, the
Applicable 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 which have accrued to but excluding the Effective Date and
to the Assignee for amounts which have accrued from and after the Effective
Date. 

       

           3. General Provisions. This Assignment and Assumption shall be
binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns. This Assignment and Assumption 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 and Assumption by
telecopy shall be effective as delivery of a manually executed counterpart of
this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the law of the State of New York, without
regard to conflict of laws principles thereof.

       

      A- 

       

      
        

      

      
      

      EXHIBIT B 

       

      Form of Compliance
Certificate 

       

           Financial Statement Date:_______ __, 20__ 

       

      To:   JPMorgan
Chase Bank, N.A., as Facility Agent

       

      Ladies and Gentlemen:

       

                Reference is made to that certain Credit
Agreement dated as of July 13, 2010 (as amended, restated, extended,
supplemented or otherwise modified in writing from time to time, the
“Agreement;” the terms defined therein being used herein
as therein defined), among Pall Corporation, a New York corporation (the
“Company”), the Lenders from time to time party
thereto and JPMorgan Chase Bank, N.A., as Facility Agent and J.P. Morgan Europe
Limited, as London Agent. 

       

           The undersigned Responsible Officer of the Company hereby certifies as of
the date hereof that he/she is the ________________________ of the Company, and
that, as such, he/she is authorized to execute and deliver this Certificate to
the Facility Agent on the behalf of the Company, and that: 

       

      [Use following paragraph 1 for
Fiscal Year-end financial statements] 

       

           1. Attached hereto as Schedule 1 are the year-end audited financial
statements required by Section 5.01(a) of the Agreement for the Fiscal Year of the
Company ended as of the above date, together with the report and opinion of an
independent certified public accountant required by such section. 

       

      [Use following paragraph 1 for
fiscal quarter-end financial statements] 

       

           1. Attached hereto as Schedule 1.
are the unaudited financial statements required by Section 5.01(b) of the Agreement for the fiscal quarter of
the Company ended as of the above date. Such financial statements fairly present
in all material respects the financial position, results of operations and cash
flows of the Company and its Subsidiaries in accordance with GAAP as at such
date and for such period, subject only to normal year-end audit adjustments and
the absence of footnotes. 

       

           2. The undersigned has reviewed and
is familiar with the terms of the Agreement and has made, or has caused to be made under his/her
supervision, a detailed review of the transactions and condition (financial or
otherwise) of the Company during the accounting period covered by the attached
financial statements. 

       

           3. A review of the activities of the Company during such fiscal period
has been made under the supervision of the undersigned with a view to
determining whether during such fiscal period the Company performed and observed
all its Obligations under the Loan Documents, and 

       

      B- 

       

      
        

      

    

    
    

    [select one:]

     

         [the Company performed and observed each covenant of the Loan Documents
applicable to it in accordance with any applicable materiality qualifications
set forth therein.]

     

    --or--

     

         [the following covenants have not been performed or observed (subject to
all applicable materiality qualifications) and the following is a list of each
such Default and its nature and status:]

     

         4. The financial covenant analyses and information set forth on
Schedule 2 attached hereto are true and accurate on and
as of the date of this Certificate. 

     

         IN WITNESS WHEREOF, the undersigned has executed this Certificate as of __________________,
__________.

     

    
      	PALL CORPORATION
	 
 	
            
	By:	 
	Name:   	 
	Title:	 

    

    B-Form of Compliance
Certificate

     

    

    
    

    For the Quarter/Year
ended _______________ (“Statement Date”)

     

    SCHEDULE 2
to the Compliance Certificate
($ in
000’s)

     

    
      	I.	 	Section 6.03 –
    Indebtedness	      	
            	                    
    	
            
	 
	
            	 	A.	 	Priority Indebtedness as of the
      Statement Date:	
            	$	
            	
            
	
            	 	B.	
            	Consolidated Net Tangible Assets as of
      the Statement Date:	
            	$	
            	
            
	
            	 	C.	
            	7.5% of Consolidated Net Tangible Assets
      as of the Statement Date (Line I.B x 7.5%):	
            	$	
            	
            
	 
	II.	 	Section 6.11 (a) - Consolidated Net
      Interest Coverage Ratio.	
            	
            	
            	
            
	 
	
            	 	A.	
            	Consolidated EBITDA for four consecutive
      fiscal quarters ending on above date (“Subject Period”):	
            	
            
	 
	
            	     
    	
            	     
    	1.	     
    	Consolidated Net Income (Net Loss) for Subject Period:	
            	$	
            	
            
	
            	
            	
            	 	2.	 	Consolidated Interest Charges for Subject Period:	
            	$	
            	
            
	
            	
            	
            	 	3.	 	Provision for income taxes for Subject Period:	
            	$	
            	
            
	
            	
            	
            	 	4.	 	Depreciation expenses for Subject Period:	
            	$	
            	
            
	
            	
            	
            	 	5.	 	Amortization expenses for Subject Period:	
            	$	
            	
            
	
            	
            	
            	 	6.	 	Non-cash non-recurring charges or losses for Subject
    Period:	
            	$	
            	
            
	
            	
            	
            	 	7.	 	Non-cash non-recurring gains for Subject Period:	
            	$	
            	
            
	
            	
            	
            	 	8.	 	Income tax credits or refunds for Subject Period:	
            	$	
            	 
	
            	
            	
            	 	9.	 	Interest income for Subject Period	
            	$	
            	
            
	
            	
            	
            	 	10.	 	Consolidated EBITDA (Lines II.Al + 2 + 3 + 4 + 5 + 6 – 7 – 8 –
      9):	
            	$	
            	
            
	
            	
            	B.	 	Consolidated Interest Charges for
      Subject Period less interest income earned by the Company and its
      Subsidiaries for Subject Period:	
            	$	
            	
            
	
            	
            	C.	 	Consolidated Net Interest Coverage Ratio
      (Line II.A.10 ÷ Line II.B):	
            	$	
            	 to 1
	
            	
            	
            	
            	Minimum required: 3.50 to
      1.00	
            	
            	
            	
            

    

    B-Form of Compliance
Certificate

     

    

    
    

    
      	III.	 	Section 6.11(b) - Consolidated Net
      Leverage Ratio.	
            	
            	                    
    	
            
	 
	
            	     
    	A.	      	Consolidated Funded Indebtedness at Statement Date:	      	$	
            	
            
	
            	 	B.	
            	Consolidated EBITDA for Subject Period (Line II.A.10
    above):	
            	$	
            	
            
	
            	 	C.	
            	Consolidated Leverage Ratio (Line III.A ÷ Line III.B):	
            	$	
            	 to 1
	
            	
            	
            	
            	Maximum permitted: 3.50 to
      1.00	
            	
            	
            	
            

    

    B-Form of Compliance
Certificate

     

    

    
    

    For the Quarter/Year
ended _______________ (“Statement Date”)

     

    SCHEDULE 3
to the Compliance Certificate
($ in
000’s)

     

    Consolidated EBITDA
(in accordance with the definition of
Consolidated EBITDA
as set forth in the Agreement)

     

    
      	Consolidated	Quarter	Quarter	Quarter	Quarter	Twelve
	EBITDA	Ended	Ended	Ended	Ended	Months
	
            	
            	
            	
            	
            	Ended
	 	                           
 	                           
 	                           
 	                           
 	                           
 
	Consolidated Net Income
 	 	
            	
            	
            	
            
	+
      Consolidated Interest Charges
 	
            	 	
            	
            	 
	+
      income taxes
 	
            	
            	 	 	
            
	+
      depreciation expense
 	
            	 	
            	
            	 
	+
      amortization expense
 	
            	
            	
            	
            	
            
	+
      non-cash non-recurring charges and losses
 	
            	
            	
            	 	
            
	-
      non-cash non-recurring gains
 	
            	
            	
            	
            	
            
	-
      income tax credits and refunds
 	
            	
            	
            	
            	
            
	-
      interest income
 	
            	
            	
            	
            	
            
	=
      Consolidated EBITDA
 	
            	
            	
            	
            	  

    

    B-Form of Compliance
Certificate

     

    

    
    

    EXHIBIT C

     

    Mandatory Costs
Rate

     

    1. The Mandatory Costs
Rate is an addition to the interest rate to compensate Lenders for the cost of
compliance with (a) the requirements of the Bank of England and/or the Financial
Services Authority (or, in either case, any other authority which replaces all
or any of its functions) or (b) the requirements of the European Central
Bank.

     

    2. On the first day of
each Interest Period (or as soon as possible thereafter) the London Agent shall calculate a rate (the
“Additional Costs Rate”), expressed as a percentage, for each
Lender, in accordance with the paragraphs set out below. The Mandatory Costs
Rate will be calculated by the London Agent as a weighted average of the
Lenders’ Additional Costs Rates (weighted in proportion to the percentage
participation of each Lender in the applicable Borrowing) and will be expressed
as a percentage rate per annum.

     

    3. The Additional Costs
Rate for any Lender lending from a Lending Office located in a Participating Member State will be the
percentage notified by that Lender to the London Agent. This percentage will be
certified by that Lender in its notice to the London Agent to be its reasonable
determination of the cost (expressed as a percentage of that Lender’s
participation in all Loans made from such Lending Office) of complying with the
minimum reserve requirements of the European Central Bank in respect of Loans
made from such Lending Office.

     

    4. The Additional Costs
Rate for any Lender lending from a Lending Office in the United Kingdom will be calculated by the
London Agent as follows:

     

    (a) with respect to any
Loan denominated in Sterling:

     

    
      	AB + C(B –
      D) + E × 0.01	  percent per annum
	100 – (A + C)

    

    (b) with respect to any
Loan denominated in any currency (other than Sterling):

     

    
      	E × 0.01	  percent per annum.
	300

    

    Where:

     

    “A” means the percentage of Eligible Liabilities
(assuming these to be in excess of any stated minimum) which that Lender is from
time to time required to maintain as an interest free cash ratio deposit with
the Bank of England to comply with cash ratio requirements.

     

    “B” means the percentage rate of interest
(excluding the Applicable Rate and the Mandatory Costs Rate and, if the Loan was
not paid when due, the additional rate of interest specified in Section 2.12(d))
payable for the applicable Interest Period on the Loan.

     

    C-

     

    

    
    

    “C” means the percentage (if any) of Eligible
Liabilities which that Lender is required from time to time to maintain as
interest bearing Special Deposits with the Bank of England.

     

    “D” means the percentage rate per annum payable
by the Bank of England to the London Agent on interest bearing Special
Deposits.

     

    “E” is designed to compensate Lenders for
amounts payable under the Fees Rules and is calculated by the London Agent as
being the average of the most recent rates of charge supplied by the Reference
Banks to the London Agent pursuant to paragraph 7 below and expressed in
Sterling per £1,000,000.

     

    5. For the purposes of
this Schedule:

     

    (a) “Eligible Liabilities” and “Special Deposits” have the meanings given to them from time to
time under or pursuant to the Bank of England Act 1998 or (as may be
appropriate) by the Bank of England.

     

    (b) “Fees Rules” means the rules on periodic fees contained
in the Financial Services Authority Supervision Manual or such other law or
regulation as may be in force from time to time in respect of the payment of
fees for the acceptance of deposits.

     

    (c) “Fee Tariffs” means the fee tariffs specified in the Fees
Rules under the activity group A.1 Deposit acceptors (ignoring any minimum fee
or zero rated fee required pursuant to the Fees Rules but taking into account
any applicable discount rate).

     

    (d) “Participating Member State” means any member state of the European
Communities that adopts or has adopted the Euro as its lawful currency in
accordance with legislation of the European Community relating to Economic and
Monetary Union.

     

    (e) “Tariff Base” has the meaning given to it in, and will be
calculated in accordance with, the Fees Rules.

     

    6. In application of the
above formulae, A, B, C and D will be included in the formulae as percentages
(i.e. 5% will be included in the formula as 5 and
not as 0.05). A negative result obtained by subtracting D from B shall be taken
as zero. The resulting figures shall be rounded to four decimal
places.

     

    7. If requested by the
London Agent, each Reference Bank shall, as soon as practicable after
publication by the Financial Services Authority, supply to the London Agent, the
rate of charge payable by that Reference Bank to the Financial Services
Authority pursuant to the Fees Rules in respect of the relevant financial year
of the Financial Services Authority (calculated for this purpose by that
Reference Bank as being the average of the Fee Tariffs applicable to that
Reference Bank for that financial year) and expressed in Sterling per £1,000,000
of the Tariff Base of that Reference Bank.

     

    C-

     

    

    
    

    8. Each Lender shall
supply any information required by the London Agent for the purpose of
calculating its Additional Costs Rate. In particular, but without limitation,
each Lender shall supply the following information on or prior to the date on
which it becomes a Lender:

     

    (a) the jurisdiction of
its applicable Lending Office; and

     

    (b) any other
information that the London Agent may reasonably require for such
purpose.

     

    Each Lender shall
promptly notify the London Agent of any change to the information provided by it
pursuant to this paragraph.

     

    9. The percentages of
each Lender for the purpose of A and C above and the rates of charge of each
Reference Bank for the purpose of E above shall be determined by the London
Agent based upon the information supplied to it pursuant to paragraphs 7 and 8
above and on the assumption that, unless a Lender notifies the London Agent to
the contrary, each Lender’s obligations in relation to cash ratio deposits and
Special Deposits are the same as those of a typical bank from its jurisdiction
of incorporation with a Lending Office in the same jurisdiction as its
applicable Lending Office.

     

    10. The London Agent
shall have no liability to any person if such determination results in an
Additional Costs Rate which over or under compensates any Lender and shall be
entitled to assume that the information provided by any Lender or Reference Bank
pursuant to paragraphs 3, 7 and 8 above is true and correct in all
respects.

     

    11. The London Agent
shall distribute the additional amounts received as a result of the Mandatory
Costs Rate to the Lenders on the basis of the Additional Costs Rate for each
Lender based on the information provided by each Lender and each Reference Bank
pursuant to paragraphs 3, 7 and 8 above.

     

    12. Any determination by
the London Agent pursuant to this Schedule in relation to a formula, the
Mandatory Costs Rate, an Additional Costs Rate or any amount payable to a Lender
shall, in the absence of manifest error, be conclusive and binding.

     

    13. The London Agent may
from time to time, after consultation with the Company and the Lenders,
determine and notify to all parties any amendments which are required to be made
to this Schedule in order to comply with any change in law, regulation or any
requirements from time to time imposed by the Bank of England, the Financial
Services Authority or the European Central Bank (or, in any case, any other
authority which replaces all or any of its functions) and any such determination
shall, in the absence of manifest error, be conclusive and binding.

     

    C-

     

    

    
    

    EXHIBIT D

     

    Form of Borrowing
Request

     

    JPMorgan Chase Bank,
N.A., as Facility Agent
for the Lenders referred to below,
270 Park
Avenue
New York, N.Y. 10017

    [Date]

    Attention: [Teresita R.
Siao]

     

    Dear Ladies and
Gentlemen:

     

              The
undersigned, Pall Corporation, a New York corporation (the “Company”), refers to the Five-Year Credit Agreement
dated as of July 13, 2010 (as amended, supplemented or otherwise modified time
to time, the “Credit Agreement”), among the Company, the Lenders from time
to time party thereto, JPMorgan Chase Bank, N.A., as Facility Agent and J. P.
Morgan Europe Limited, as London Agent. Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to such terms in the
Credit Agreement. This notice constitutes a Borrowing Request and the Company
hereby gives you notice pursuant to Section 2.03 of the Credit Agreement that it
requests a Borrowing under the Credit Agreement, and in that connection sets
forth below the terms on which such Borrowing is requested to be
made:

     

              (a)
such Borrowing shall be denominated in [CURRENCY]1 and shall be in an
aggregate principal amount equal to $[●]2;

     

              (b)
the date of such Borrowing shall be [●]3;

     

              (c)
such Borrowing shall be [an ABR Borrowing]4[a EURIBOR Borrowing][a
LIBOR Borrowing];

     

              (d)
[if such Borrowing is a EURIBOR Borrowing or a
LIBOR Borrowing] the
initial Interest Period for such Borrowing shall have a
[one][two][three][six]5 months’ duration;
and

     

    ____________________

     

         1
Borrowings may be denominated in US Dollars or an Alternative
Currency.

     

         2 The
principal amount of any Borrowing must be an integral multiple of the Borrowing
Multiple and not less than the Borrowing Minimum. 

     

         3 The date
of any Borrowing must be a Business Day and (a) in the case of a LIBOR Borrowing
denominated in US Dollars, the third Business Day after the date of this
Borrowing Request, (b) in the case of a LIBOR Borrowing denominated in an
Alternative Currency or a EURIBOR Borrowing, the fourth Business Day after the
date of this Borrowing Request and (c) in the case of an ABR Borrowing, the date
of this Borrowing Request, in each case assuming this Borrowing Request is made
not later than 11:00 a.m. Local Time.

     

         4 ABR
Borrowings are only available for US Dollar denominated Borrowings.

     

    D-

     

    

    
    

              (e) the Applicable Funding Account for such
Borrowing shall be [●].

     

    
      	Very truly yours,
 
	PALL CORPORATION,
 
	       by  	 
	 	Name:
	 	Title:

    

    
      	     5 With the consent
      of each Lender, the Interest Period may have a nine or 12 months’
      duration.

    

    D-

     

    

    
    

    EXHIBIT E

     

    [FORM OF]

     

    U.S. TAX
CERTIFICATE

     

    (For Non-U.S. Lenders
That Are Not Partnerships For U.S. Federal Income Tax Purposes)

     

              Reference is hereby made to the Credit
Agreement dated as of July 13, 2010 (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among Pall Corporation, the
Lenders party thereto, JPMorgan Chase Bank, N.A., as Facility Agent and J. P.
Morgan Europe Limited, as London Agent.

     

              Pursuant
to the provisions of Section 2.16 of the Credit Agreement, the undersigned
hereby certifies that (i) it is the sole record and beneficial owner of the
Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it
is providing this certificate, (ii) it is not a bank within the meaning of
Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended, (the
“Code”), (iii) it is not a ten percent shareholder of the Borrower within the
meaning of Code Section 871(h)(3)(B), (iv) it is not a controlled foreign
corporation related to the Borrower as described in Section 881(c)(3)(C) of the
Code and (v) the interest payments in question are not effectively connected
with the undersigned’s conduct of a U.S. trade or business.

     

              The
undersigned has furnished the Administrative Agent and the Borrower with a
certificate of its non-U.S. person status on IRS Form W-8BEN. By executing this
certificate, the undersigned agrees that (1) if the information provided on this
certificate changes, the undersigned shall promptly so inform the Borrower and
the Administrative Agent and (2) the undersigned shall have at all times
furnished the Borrower and the Administrative Agent with a properly completed
and currently effective certificate in either the calendar year in which each
payment is to be made to the undersigned, or in either of the two calendar years
preceding such payments.

     

              Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

     

     

     

     

     

    [NAME OF
LENDER]

     

    
      	By:	
            
	
            	  Name:
	
            	  Title:

    

    Date: ________ __,
20[  ]

     

    E-Form of U. S. Tax
Certificate

     

    

    
    

    [FORM OF]

     

    U.S. TAX
CERTIFICATE

     

    (For Non-U.S. Lenders
That Are Partnerships For U.S. Federal Income Tax Purposes)

     

              Reference is hereby made to the Credit
Agreement dated as of July 13, 2010 (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among Pall Corporation, the
Lenders party thereto, JPMorgan Chase Bank, N.A., as Facility Agent and J. P.
Morgan Europe Limited, as London Agent.

     

              Pursuant
to the provisions of Section 2.16 of the Credit Agreement, the undersigned
hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as
any Note(s) evidencing such Loan(s)) in respect of which it is providing this
certificate, (ii) its partners/members are the sole beneficial owners of such
Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with respect to
the extension of credit pursuant to this Credit Agreement, neither the
undersigned nor any of its partners/members is a bank extending credit pursuant
to a loan agreement entered into in the ordinary course of its trade or business
within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code of 1986,
as amended, (the “Code”), (iv) none of its partners/members is a ten percent
shareholder of the Borrower within the meaning of Code Section 871(h)(3)(B), (v)
none of its partners/members is a controlled foreign corporation related to the
Borrower as described in Section 881(c)(3)(C) of the Code, and (vi) the interest
payments in question are not effectively connected with the undersigned’s or its
partners/members’ conduct of a U.S. trade or business.

     

              The
undersigned has furnished the Administrative Agent and the Borrower with IRS
Form W-8IMY accompanied by an IRS Form W-8BEN from each of its partners/members
claiming the portfolio interest exemption. By executing this certificate, the
undersigned agrees that (1) if the information provided on this certificate
changes, the undersigned shall promptly so inform the Borrower and the
Administrative Agent and (2) the undersigned shall have at all times furnished
the Borrower and the Administrative Agent with a properly completed and
currently effective certificate in either the calendar year in which each
payment is to be made to the undersigned, or in either of the two calendar years
preceding such payments.

     

              Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

     

     

     

     

     

    [NAME OF
LENDER]

     

    
      	By:	  
	  	  Name:
	  	  Title:

    

    Date: ________ __,
20[  ]

     

    E-Form of U. S. Tax
Certificate

     

    

    
    

    [FORM OF]

     

    U.S. TAX
CERTIFICATE

     

    (For Non-U.S.
Participants That Are Not Partnerships For U.S. Federal Income Tax
Purposes)

     

              Reference is hereby made to the Credit
Agreement dated as of July 13, 2010 (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among Pall Corporation, the
Lenders party thereto, JPMorgan Chase Bank, N.A., as Facility Agent and J. P.
Morgan Europe Limited, as London Agent.

     

              Pursuant
to the provisions of Section 2.16 of the Credit Agreement, the undersigned
hereby certifies that (i) it is the sole record and beneficial owner of the
participation in respect of which it is providing this certificate, (ii) it is
not a bank within the meaning of Section 881(c)(3)(A) of the Internal Revenue
Code of 1986, as amended, (the “Code”), (iii) it is not a ten percent
shareholder of the Borrower within the meaning of Code Section 871(h)(3)(B),
(iv) it is not a controlled foreign corporation related to the Borrower as
described in Section 881(c)(3)(C) of the Code, and (v) the interest payments in
question are not effectively connected with the undersigned’s conduct of a U.S.
trade or business.

     

              The
undersigned has furnished its participating Lender with a certificate of its
non-U.S. person status on IRS Form W-8BEN. By executing this certificate, the
undersigned agrees that (1) if the information provided on this certificate
changes, the undersigned shall promptly so inform such Lender in writing and (2)
the undersigned shall have at all times furnished such Lender with a properly
completed and currently effective certificate in either the calendar year in
which each payment is to be made to the undersigned, or in either of the two
calendar years preceding such payments.

     

              Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

     

     

     

     

     

    [NAME OF
PARTICIPANT]

     

    
      	By:	 
	
            	  Name:
	
            	  Title:

    

    Date: ________ __,
20[  ]

     

    E-Form of U. S. Tax
Certificate

     

    

    
    

    [FORM OF]

     

    U.S. TAX
CERTIFICATE

     

    (For Non-U.S.
Participants That Are Partnerships For U.S. Federal Income Tax
Purposes)

     

              Reference is hereby made to the Credit
Agreement dated as of July 13, 2010 (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among Pall Corporation, the
Lenders party thereto, JPMorgan Chase Bank, N.A., as Facility Agent and J. P.
Morgan Europe Limited, as London Agent.

     

              Pursuant
to the provisions of Section 2.16 of the Credit Agreement, the undersigned
hereby certifies that (i) it is the sole record owner of the participation in
respect of which it is providing this certificate, (ii) its partners/members are
the sole beneficial owners of such participation, (iii) with respect such
participation, neither the undersigned nor any of its partners/members is a bank
extending credit pursuant to a loan agreement entered into in the ordinary
course of its trade or business within the meaning of Section 881(c)(3)(A) of
the Internal Revenue Code of 1986, as amended, (the “Code”), (iv) none of its
partners/members is a ten percent shareholder of the Borrower within the meaning
of Code Section 871(h)(3)(B), (v) none of its partners/members is a controlled
foreign corporation related to the Borrower as described in Section 881(c)(3)(C)
of the Code, and (vi) the interest payments in question are not effectively
connected with the undersigned’s or its partners/members’ conduct of a U.S.
trade or business.

     

              The
undersigned has furnished its participating Lender with IRS Form W-8IMY
accompanied by an IRS Form W-8BEN from each of its partners/members claiming the
portfolio interest exemption. By executing this certificate, the undersigned
agrees that (1) if the information provided on this certificate changes, the
undersigned shall promptly so inform such Lender and (2) the undersigned shall
have at all times furnished such Lender with a properly completed and currently
effective certificate in either the calendar year in which each payment is to be
made to the undersigned, or in either of the two calendar years preceding such
payments.

     

              Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

     

     

     

     

     

    [NAME OF
PARTICIPANT]

     

    
      	By:	
            
	
            	  Name:
	
            	  Title:

    

    Date: ________ __,
20[  ]

     

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    EXHIBIT F

     

    Form of Company’s Counsel’s
Opinion

     

    JPMorgan Chase Bank, N.A., in its capacity as
Facility Agent,
and the Lenders party on the date hereof 
to the Credit
Agreement referred to below 

     

    Ladies and Gentlemen:

     

         We have acted as special counsel to Pall Corporation, a New York
corporation (the “Borrower”), in connection with the credit agreement dated as
of the date hereof (the “Credit Agreement”) among the Borrower, JPMorgan Chase
Bank, N.A., as facility agent, J. P. Morgan Europe Limited, as London agent, and
the lenders party thereto. Capitalized terms used but not defined herein shall
have the meanings ascribed to them in the Credit Agreement. This opinion letter
is furnished pursuant to Section 4.01(b) of the Credit Agreement. 

     

         In arriving at the opinions expressed below, we have reviewed the
following documents: 

     

    
      	        	(a)	        	an executed copy
      of the Credit Agreement; and
	
            	 
	
            	(b)	
            	the copies of the
      Borrower’s Certificate of Incorporation and By-Laws certified by the
      Secretary of State of the State of New York and the corporate secretary of
      the Borrower, respectively, delivered to you by the Borrower at the
      closing pursuant to the Credit Agreement.

    

     

    In addition, we have
reviewed the originals or copies certified or otherwise identified to our
satisfaction of all such corporate records of the Borrower and such other
documents, and we have made such investigations of law, as we have deemed
appropriate as a basis for the opinions expressed below. 

     

         In rendering the opinions expressed below, we have assumed the
authenticity of all documents submitted to us as originals and the conformity to
the originals of all documents submitted to us as copies. In addition, we have
assumed and have not verified the accuracy as to factual matters of each
document we have reviewed (including, without limitation, the accuracy of the
representations and warranties of the Borrower in the Credit Agreement).

     

         Based on the foregoing, and subject to the further assumptions and
qualifications set forth below, it is our opinion that: 

     

         1. The Borrower is validly existing as a corporation in good standing
under the laws of its jurisdiction of incorporation. 

     

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         2. The Borrower has corporate power
to own its properties and conduct its business as currently conducted, to enter into the Credit Agreement and
to perform its obligations thereunder. 

     

         3. The execution and delivery by the Borrower of the Credit Agreement
have been duly authorized by all necessary corporate action of the Borrower. The
Credit Agreement has been duly executed and delivered by the Borrower and is a
valid, binding and enforceable agreement of the Borrower. 

     

         4. The execution and delivery of the Credit Agreement by the Borrower do
not, and the performance by the Borrower of its obligations in the Credit
Agreement will not, (a) require any consent, approval, authorization,
registration or qualification of or with any governmental authority of the
United States of America or the State of New York that in our experience
normally would be applicable to general business entities with respect to such
execution, delivery and performance (but we express no opinion relating to the
United States federal securities laws or any state securities or Blue Sky laws
except as set forth in numbered paragraph 5 below), (b) result in a breach of
any of the terms and provisions of, or constitute a default under, any of the
agreements of the Borrower identified in Exhibit A hereto, or a violation of the
Certificate of Incorporation or By-Laws of the Borrower or (c) result in a
violation of any United States federal or New York State law or published rule
or regulation that in our experience normally would be applicable to general
business entities with respect to such execution, delivery and performance (but
we express no opinion relating to the United States federal securities laws or
any state securities or Blue Sky laws except as set forth in numbered paragraph
5 below). 

     

         5. The Borrower is not required to be registered as an investment company
under the U.S. Investment Company Act of 1940, as amended. 

     

         Insofar as the foregoing opinions relate to the valid existence and good
standing of the Borrower, they are based solely on confirmation from public
officials. Insofar as the foregoing opinions relate to the validity, binding
effect or enforceability of any agreement or obligation of the Borrower, (a) we
have assumed that the Borrower and each other party to such agreement or
obligation has satisfied those legal requirements that are applicable to it to
the extent necessary to make such agreement or obligation enforceable against it
(except that no such assumption is made as to the Borrower regarding matters of
the federal law of the United States of America or the law of the State of New
York that in our experience normally would be applicable to general business
entities with respect to such agreement or obligation), and (b) such opinions
are subject to applicable bankruptcy, insolvency and similar laws affecting
creditors’ rights generally and to general principles of equity. 

     

         We note that by statute New York provides that a judgment or decree
rendered in a currency other than the currency of the United States shall be
converted into U.S. dollars at the rate of exchange prevailing on the date of
entry of the judgment or decree. There is no corresponding Federal statute and
no controlling Federal court decision on this issue. Accordingly, we express no opinion as to
whether a Federal court would award a judgment in a currency other than U.S.
dollars or, if it did so, whether it would order conversion of the judgment into
U.S. dollars. 

     

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         We express no opinion as to the enforceability of Section 9.14 of the
Credit Agreement relating to currency indemnity. 

     

         With respect to Section 9.09(b) of the Credit Agreement in which the
parties submit to the non-exclusive jurisdiction of the United States District
Court for the Southern District of New York, we express no opinion as to the
subject matter jurisdiction of any United States federal court to adjudicate any
action relating to the Credit Agreement where jurisdiction based on diversity of
citizenship under 28 U.S.C. §1332 does not exist. We also note that the
designation in Section 9.09(b) of the Credit Agreement of the United States
District Court for the Southern District of New York as the venue for actions or
proceedings relating to the Credit Agreement is (notwithstanding the waiver in
Section 9.09(c)) subject to the power of such court to transfer actions pursuant
to 28 U.S.C. §1404(a) or to dismiss such actions or proceedings on the grounds
that such a federal court is an inconvenient forum for such an action or
proceeding. 

     

         The foregoing opinions are limited to the federal law of the United
States of America and the law of the State of New York. 

     

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         We are furnishing this opinion letter to you solely for your benefit in
connection with the Credit Agreement. This opinion letter is not to be relied on
by or furnished to any other person or used, circulated, quoted or otherwise
referred to for any other purpose. Notwithstanding the foregoing, a copy of this opinion letter may be
furnished to, and relied upon by, any of your permitted assignees of the Loans
under the Credit Agreement that becomes a Lender on or prior to the 30th day
after the date of this opinion letter. The opinions expressed herein are,
however, rendered on and as of the date hereof, and we assume no obligation to
advise you or any such assignee or any other person, or to make any
investigations, as to any legal developments or factual matters arising
subsequent to the date hereof that might affect the opinions expressed herein.

     

    
      	Very truly yours,
	 
	CLEARY GOTTLIEB STEEN & HAMILTON
    LLP
	 
	 
	By:	 	 

    

     

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    Exhibit A

     

    Material Agreements

     

    
      	1)	        	Indenture, dated
      as of August 1, 2002, by and among the Company, as Issuer, the Guarantors
      named therein, as Guarantors, and The Bank of New York, as
    Trustee
	 
	2)	
            	First
      Supplemental Indenture, dated as of October 9, 2007, to the Indenture,
      dated as of August 1, 2002, by and among the Company, the guarantors named
      therein and The Bank of New York, as trustee
	 
	3)	
            	Credit Agreement,
      dated June 21, 2006, between the Company and JPMorgan Chase Bank and the
      Other Lenders Party Thereto
	 
	4)	
            	First Amendment
      and Waiver, dated as of August 16, 2007 to the Five-Year Credit Agreement,
      dated as of June 21, 2006, among Pall Corporation, the subsidiaries of the
      Company named on the signature pages thereto, the lenders from time to
      time party thereto, JPMorgan Chase Bank, N.A., as facility agent for the
      Lenders, and J.P. Morgan Europe Limited, as London agent for the
      Lenders
	 
	5)	
            	Second Amendment
      and Waiver, dated as of December 7, 2007 to the Five-Year Credit
      Agreement, dated as of June 21, 2006, among the Company, the subsidiaries
      of the Registrant named on the signature pages thereto, the lenders from
      time to time party thereto, JPMorgan Chase Bank, N.A., as facility agent
      for the Lenders, and J.P. Morgan Europe Limited, as London agent for the
      Lenders
	 
	6)	
            	Third Amendment
      and Waiver, dated as of March 25, 2008 to the Five-Year Credit Agreement,
      dated as of June 21, 2006, among the Company, the subsidiaries of the
      Registrant named on the signature pages thereto, the lenders from time to
      time party thereto, JPMorgan Chase Bank, N.A., as facility agent for the
      Lenders, and J.P. Morgan Europe Limited, as London agent for the
      Lenders
	 
	7)	
            	Indenture, dated
      as of June 18, 2010, by and among the Company, as Issuer, and The Bank of
      New York Mellon, as Trustee
	 
	8)	
            	Company Order,
      dated as of June 18, 2010, to the Indenture, dated as of June 18, 2010, by
      and among the Company and The Bank of New York, as
  trustee

    

     

    F-ex4_1.htm

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR REGISTERED OR QUALIFIED UNDER ANY STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS SUCH SALE, TRANSFER, PLEDGE OR HYPOTHECATION IS IN ACCORDANCE WITH SUCH ACT AND APPLICABLE STATE SECURITIES LAWS.

 

	Warrant No. ______     	No. of Shares of Common Stock: _______

                                                               

WARRANT

to Purchase Common Stock of

 

Xzeres Wind Corp.

 

a Nevada Corporation

 

 

This Warrant certifies that  (“Purchaser”), is entitled to purchase from Xzeres Wind Corp., a Nevada corporation (the “Company”),  shares of Common Stock (or any portion thereof) at an exercise price of $1.25 per share of Common Stock at any time on or before ________ ___, 2013 (the “Expiration Date”), all on the terms and conditions hereinafter provided.

 

Section 1. Certain Definitions. As used in this Warrant, unless the context otherwise requires:

 

“Articles” shall mean the Articles of Incorporation of the Company, as in effect from time to time.

 

“Common Stock” shall mean the Company’s authorized common stock, no par value per share.

 

“Exercise Price” shall mean the exercise price per share of Common Stock set forth above, as adjusted from time to time pursuant to Section 3 hereof.

 

“Securities Act” shall mean the Securities Act of 1933, as amended.

 

“Warrant” shall mean this Warrant and all additional or new warrants issued upon division or combination of, or in substitution for, this Warrant. All such additional or new warrants shall at all times be identical as to terms and conditions and date, except as to the number of shares of Common Stock for which they may be exercised.

 

“Warrant Stock” shall mean the shares of Common Stock purchasable by the holder of this Warrant upon the exercise of such Warrant.

 

“Warrantholder” shall mean the Purchaser, as the initial holder of this Warrant, and its nominees, successors or assigns, including any subsequent holder of this Warrant to whom it has been legally transferred.

 

  

  

  

 

Section 2. Exercise of Warrant.

 

(a)At any time after the date hereof and on or before the Expiration Date, the Purchaser may at any time and from time to time exercise this Warrant, in whole or in part.

 

(b)(i) The Warrantholder shall exercise this Warrant by means of delivering to the Company at its office identified in Section 14 hereof (i) a written notice of exercise, including the number of shares of Warrant Stock to be delivered pursuant to such exercise, (ii) this Warrant and (iii) payment equal to the Exercise Price either in cash or in accordance with Section 2(b)(ii). In the event that any exercise shall not be for all shares of Warrant Stock purchasable hereunder, the Company shall deliver to the Warrantholder a new Warrant registered in the name of the Warrantholder, of like tenor to this Warrant and for the remaining shares of Warrant Stock purchasable hereunder, within ten (10) days of any such exercise. Such notice of exercise shall be in the Subscription Form set out at the end of this Warrant.

 

(ii) In lieu of exercising this Warrant by payment of the Exercise Price in cash, during any period of time in which there is not a registration statement in effect for the resale by the Warrantholder of the Warrant Stock pursuant to the Securities Act, the Warrantholder may elect to receive shares equal to the value of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal office of the Company together with notice of such election, in which event the Company shall issue to the Holder hereof a number of Shares computed using the following formula:

 

X    =        Y(A-B)/A

 

Where                      X --           The number of shares of Common Stock to be issued to the holder

of this Warrant upon cashless exercise.

 

	
  

	
Y --

	
The number of shares of Common Stock purchasable under this Warrant.

 

	
  

	
A --

	
The fair market value of one share of the Company’s Common Stock.

 

	
  

	
B --

	
The Exercise Price (as adjusted to the date of such calculations).

 

For purposes of this Section 2(b)(ii), the fair market value of the Common Stock, if publicly traded, shall be the five day average of the reported closing price each day of the Common Stock for the five days immediately preceding the exercise of this Warrant.  If the Shares are not publicly traded, their fair market value shall be the price per share that the Company could obtain from a willing buyer for shares of Common Stock sold by the Company from authorized but unissued shares, as such prices shall be determined by reference to the most recent sale or issuance by the Company of Common Stock.

 

(c)Upon exercise of this Warrant and delivery of the Subscription Form with proper payment relating thereto, the Company shall cause to be executed and delivered to the Warrantholder a certificate or certificates representing the aggregate number of fully-paid and nonassessable shares of Common Stock issuable upon such exercise.

 

(d)The stock certificate or certificates for Warrant Stock to be delivered in accordance with this Section 2 shall be in such denominations as may be specified in said notice of exercise and shall be registered in the name of the Warrantholder or such other name or names as shall be designated in said notice. Such certificate or certificates shall be deemed to have been issued and the Warrantholder or any other person so designated to be named therein shall be deemed to have become the holder of record of such shares, including to the extent permitted by law the right to vote such shares or to consent or to receive notice as stockholders, as of the time said notice is delivered to the Company as aforesaid.

 

  

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(e)The Company shall pay all expenses payable in connection with the preparation, issue and delivery of stock certificates under this Section 2, including any transfer taxes resulting from the exercise of the Warrant and the issuance of Warrant Stock hereunder.

 

(f)All shares of Warrant Stock issuable upon the exercise of this Warrant in accordance with the terms hereof shall be validly issued, fully paid and nonassessable, and free from all liens and other encumbrances thereon, other than liens or other encumbrances created by the Warrantholder.

 

(g)In no event shall any fractional share of Common Stock of the Company be issued upon any exercise of this Warrant. If, upon any exercise of this Warrant, the Warrantholder would, except as provided in this paragraph, be entitled to receive a fractional share of Common Stock, then the Company shall deliver in cash to such holder an amount equal to such fractional interest.

 

Section 3. Adjustment of Exercise Price and Warrant Stock.

 

(a)If, at any time prior to the Expiration Date, the number of outstanding shares of Common Stock is (i) increased by a stock dividend payable in shares of Common Stock or by a subdivision or split-up of shares of Common Stock, or (ii) decreased by a combination of shares of Common Stock, then, following the record date fixed for the determination of holders of Common Stock entitled to receive the benefits of such stock dividend, subdivision, split-up, or combination, the Exercise Price shall be adjusted to a new amount equal to the product of (I) the Exercise Price in effect on such record date and (II) the quotient obtained by dividing (x) the number of shares of Common Stock outstanding on such record date (without giving effect to the event referred to in the foregoing clause (i) or (ii)), by (y) the number of shares of Common Stock which would be outstanding immediately after the event referred to in the foregoing clause (i) or (ii), if such event had occurred immediately following such record date. 

 

(b)Upon each adjustment of the Exercise Price as provided in Section 3 (a), the Warrantholder shall thereafter be entitled to subscribe for and purchase, at the Exercise Price resulting from such adjustment, the number of shares of Warrant Stock equal to the product of (i) the number of shares of Warrant Stock existing prior to such adjustment and (ii) the quotient obtained by dividing (I) the Exercise Price existing prior to such adjustment by (II) the new Exercise Price resulting from such adjustment.

 

(c) If the Company, at any time while this Warrant is outstanding, shall sell or grant any  instrument or right, including but not limited to any option, warrant, or convertible debt, entitling any person to acquire shares of Common Stock, at an effective price per share less than the then Exercise Price (such lower price, the “Base Exercise Price” and such issuances collectively, a “Dilutive Convertible Issuance”), then the Exercise Price shall be reduced and only reduced to equal the Base Exercise Price.

 

  

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(d)      If the Company, at any time while this Warrant is outstanding, shall sell or grant Common Stock at an effective price per share less than eighty percent (80%) of the then Exercise Price (such lower price, the “Base Share Price” and such issuances collectively, a “Dilutive Equity Issuance”), then the Exercise Price shall be reduced and only reduced to equal one hundred and twenty-five percent (125%) of the Base Share Price.

 

Section 4. Division and Combination. This Warrant may be divided or combined with other Warrants upon presentation at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Warrantholder or its agent or attorney. The Company shall pay all expenses in connection with the preparation, issue and delivery of Warrants under this Section 4, including any transfer taxes resulting from the division or combination hereunder. The Company agrees to maintain at its aforesaid office books for the registration of the Warrants.

 

Section 5. Reclassification, Etc. In case of any reclassification or change of the outstanding Common of the Company (other than as a result of a subdivision, combination or stock dividend), or in case of any consolidation of the Company with, or merger of the Company into, another corporation or other business organization (other than a consolidation or merger in which the Company is the continuing corporation and which does not result in any reclassification or change of the outstanding Common Stock of the Company) at any time prior to the Expiration Date, then, as a condition of such reclassification, reorganization, change, consolidation or merger, lawful provision shall be made, and duly executed documents evidencing the same from the Company or its successor shall be delivered to the Warrantholder, so that the Warrantholder shall have the right prior to the Expiration Date to purchase, at a total price not to exceed that payable upon the exercise of this Warrant, the kind and amount of shares of stock and other securities and property receivable upon such reclassification, reorganization, change, consolidation or merger by a holder of the number of shares of Common Stock of the Company which might have been purchased by the Warrantholder immediately prior to such reclassification, reorganization, change, consolidation or merger, in any such case appropriate provisions shall be made with respect to the rights and interest of the Warrantholder to the end that the provisions hereof (including provisions for the adjustment of the Exercise Price and of the number of shares purchasable upon exercise of this Warrant) shall thereafter be applicable in relation to any shares of stock and other securities and property thereafter deliverable upon exercise hereof.

 

Section 6. Reservation and Authorization of Capital Stock. The Company shall at all times reserve and keep available for issuance such number of its authorized but unissued shares of Common Stock as will be sufficient to permit the exercise in full of all outstanding Warrants.

 

Section 7. Stock and Warrant Books. The Company will not at any time, except upon dissolution, liquidation or winding up, close its stock books or Warrant books so as to result in preventing or delaying the exercise of any Warrant.

 

Section 8. Limitation of Liability. No provisions hereof, in the absence of affirmative action by the Warrantholder to purchase Warrant Stock hereunder, shall give rise to any liability of the Warrantholder to pay the Exercise Price or as a stockholder of the Company (whether such liability is asserted by the Company or creditors of the Company).

 

Section 9. Registration Rights. The Warrant Stock issuable upon exercise of this Warrant is subject to the provisions of a certain Subscription and Registration Rights Agreement, dated same date herewith, by and among the Company, and the Purchaser.

 

Section 10. Transfer. Subject to compliance with the Securities Act and the applicable rules and regulations promulgated thereunder, this Warrant and all rights hereunder shall be transferable in whole or in part. Any such transfer shall be made at the office or agency of the Company at which this Warrant is exercisable, by the registered holder hereof in person or by its duly authorized attorney, upon surrender of this Warrant together with the assignment hereof properly endorsed, and promptly thereafter a new warrant shall be issued and delivered by the Company, registered in the name of the assignee. Until registration of transfer hereof on the books of the Company, the Company may treat the Purchaser as the owner hereof for all purposes.

 

  

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Section 11. Investment Representations; Restrictions on Transfer of Warrant Stock. Unless a current registration statement under the Securities Act shall be in effect with respect to the Warrant Stock to be issued upon exercise of this Warrant, the Warrantholder, by accepting this Warrant, covenants and agrees that, at the time of exercise hereof, and at the time of any proposed transfer of Warrant Stock acquired upon exercise hereof, such Warrantholder will deliver to the Company a written statement that the securities acquired by the Warrantholder upon exercise hereof are for the account of the Warrantholder or are being held by the Warrantholder as trustee, investment manager, investment advisor or as any other fiduciary for the account of the beneficial owner or owners for investment and are not acquired with a view to, or for sale in connection with, any distribution thereof (or any portion thereof) and with no present intention (at any such time) of offering and distributing such securities (or any portion thereof).

 

Section 12. Loss, Destruction of Warrant Certificates. Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction or mutilation of any Warrant and, in the case of any such loss, theft or destruction, upon receipt of indemnity and/or security satisfactory to the Company or, in the case of any such mutilation, upon surrender and cancellation of such Warrant, the Company will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the right to purchase the same aggregate number of shares of Common Stock.

 

Section 13. Amendments. The terms of this Warrant may be amended, and the observance of any term herein may be waived, but only with the written consent of the Company and the Warrantholder.

 

Section 14. Notices Generally. Any notice, request, consent, other communication or delivery pursuant to the provisions hereof shall be in writing and shall be sent by one of the following means: (i) by registered or certified first class mail, postage prepaid, return receipt requested; (ii) by facsimile transmission with confirmation of receipt; (iii) by nationally recognized courier service guaranteeing overnight delivery; or (iv) by personal delivery, and shall be properly addressed to the Warrantholder at the last known address or facsimile number appearing on the books of the Company, or, except as herein otherwise expressly provided, to the Company at its principal executive office, or such other address or facsimile number as shall have been furnished to the party giving or making such notice, demand or delivery.

 

Section 15. Successors and Assigns. This Warrant shall bind and inure to the benefit of and be enforceable by the parties hereto and their respective permitted successors and assigns.

 

Section 16. Governing Law. In all respects, including all matters of construction, validity and performance, this Warrant and the obligations arising hereunder shall be governed by, and construed and enforced in accordance with the laws of the State of Nevada.

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be signed in its name by its Authorized Representative.

 

Dated: _____________________

 

Xzeres Wind Corp.

 

a Nevada Corporation

 

By:___________________

 

Its: __________________

 

  

5

  

SUBSCRIPTION FORM

 

(to be executed only upon exercise of Warrant)

 

 

	
  

	
To:Xzeres Wind Corp.

 

	
  

	
1500 SW 1st Street, Suite 910

 

	
  

	
Portland, OR 97201

 

[Choose one or both of the paragraphs, as applicable]

 

 

The undersigned, pursuant to the provisions set forth in the attached Warrant (No. __ ), hereby irrevocably elects to purchase __________ shares of the Common Stock covered by such Warrant and herewith makes payment of $__________, representing the full purchase price for such shares at the price per share provided for in such Warrant.

 

 

The undersigned, pursuant to the provisions set forth in the attached Warrant (No. __ ), hereby irrevocably elects to exercise the right of conversion represented by the attached Warrant for ____ shares of Common Stock, and as payment therefor hereby directs Xzeres Wind Corp. to withhold ____ shares of Common Stock that the undersigned would otherwise be entitled thereunder.

 

 

 

Dated: ____________           Name: _______________________

 

 

Signature: _____________________

 

 

Address: ______________________

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