Document:

exv10w1

 

EXHIBIT 10.1

EXECUTION COPY

$1,350,000,000

AMENDED AND RESTATED

REVOLVING CREDIT AND TERM LOAN AGREEMENT

among

ZIMMER HOLDINGS, INC.,

ZIMMER, INC.,

ZIMMER K. K.,

ZIMMER LTD.,

CENTERPULSE LTD.,

THE BORROWING SUBSIDIARIES,

THE LENDERS NAMED HEREIN,

JPMORGAN CHASE BANK, as General Administrative Agent,

JPMORGAN CHASE BANK, TOKYO BRANCH, as Japanese Administrative Agent,

and

J.P. MORGAN EUROPE LIMITED, as European Administrative Agent,

Dated as of May 24, 2004

J. P. Morgan Securities Inc., Credit Suisse First Boston

and Banc of America Securities LLC,

as Joint Lead Arrangers and Joint Bookrunners

Credit Suisse First Boston and Bank of America, N.A.,

as Co-Syndication Agents

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I
 Definitions
	 	 	 	 
	SECTION 1.01. Defined Terms
	 	 	1	 
	SECTION 1.02. Classification of Loans and Borrowings
	 	 	25	 
	SECTION 1.03. Terms Generally
	 	 	25	 
	SECTION 1.04. Accounting Terms, GAAP
	 	 	25	 
	ARTICLE II
 Amount and Terms of the Commitments
	 	 	 	 
	SECTION 2.01. Commitments
	 	 	26	 
	SECTION 2.02. Loans and Borrowings
	 	 	27	 
	SECTION 2.03. Requests for Borrowings
	 	 	28	 
	SECTION 2.04. Borrowing Subsidiaries
	 	 	29	 
	ARTICLE III
 Competitive Bid Loans
	 	 	 	 
	SECTION 3.01. Competitive Bid Procedure
	 	 	30	 
	ARTICLE IV
 Letters of Credit
	 	 	 	 
	SECTION 4.01. Letters of Credit
	 	 	32	 
	ARTICLE V 
Swingline Loans
	 	 	 	 
	SECTION 5.01. Swingline Loans
	 	 	36	 
	ARTICLE VI
 General Provisions Applicable to Loans
	 	 	 	 
	SECTION 6.01. Funding of Borrowings
	 	 	37	 

 

 

	 	 	 	 	 
	SECTION 6.02. Interest Elections
	 	 	38	 
	SECTION 6.03. Termination and Reduction of Commitments
	 	 	39	 
	SECTION 6.04. Repayment of Loans; Evidence of Debt
	 	 	40	 
	SECTION 6.05. Amortization of Term Loans
	 	 	41	 
	SECTION 6.06. Prepayment of Loans
	 	 	42	 
	SECTION 6.07. Fees
	 	 	43	 
	SECTION 6.08. Interest
	 	 	44	 
	SECTION 6.09. Alternate Rate of Interest
	 	 	45	 
	SECTION 6.10. Increased Costs
	 	 	46	 
	SECTION 6.11. Break Funding Payments
	 	 	47	 
	SECTION 6.12. Taxes
	 	 	48	 
	SECTION 6.13. Payments Generally; Pro Rata Treatment; Sharing of Setoffs
	 	 	51	 
	SECTION 6.14. Mitigation Obligations; Replacement of Lenders
	 	 	52	 
	ARTICLE VII 
Representations and Warranties
	 	 	 	 
	SECTION 7.01. Organization; Powers
	 	 	53	 
	SECTION 7.02. Authorization
	 	 	53	 
	SECTION 7.03. Enforceability
	 	 	54	 
	SECTION 7.04. Governmental Approvals
	 	 	54	 
	SECTION 7.05. Financial Statements; No Material Adverse Effect
	 	 	54	 
	SECTION 7.06. Litigation, Compliance with Laws
	 	 	54	 
	SECTION 7.07. Federal Reserve Regulations
	 	 	55	 
	SECTION 7.08. Taxes
	 	 	55	 
	SECTION 7.09. Employee Benefit Plans
	 	 	55	 
	SECTION 7.10. Environmental and Safety Matters
	 	 	55	 
	SECTION 7.11. Properties
	 	 	55	 
	SECTION 7.12. Investment and Holding Company Status
	 	 	56	 
	ARTICLE VIII
 Conditions
	 	 	 	 
	SECTION 8.01. Restatement Date
	 	 	56	 
	SECTION 8.02. Conditions to All Other Extensions of Credit
	 	 	57	 
	SECTION 8.03. Initial Borrowing by Each Borrowing Subsidiary
	 	 	57	 
	ARTICLE IX 
Affirmative Covenants
	 	 	 	 
	SECTION 9.01. Existence
	 	 	58	 
	SECTION 9.02. Business and Properties
	 	 	58	 

ii

 

	 	 	 	 	 
	SECTION 9.03. Financial Statements, Reports, Etc
	 	 	58	 
	SECTION 9.04. Insurance
	 	 	59	 
	SECTION 9.05. Obligations and Taxes
	 	 	59	 
	SECTION 9.06. Litigation and Other Notices
	 	 	59	 
	SECTION 9.07. Books and Records
	 	 	60	 
	SECTION 9.08. Subsidiary Guarantor
	 	 	60	 
	SECTION 9.09. Use of Proceeds
	 	 	60	 
	ARTICLE X 
Negative Covenants
	 	 	 	 
	SECTION 10.01. Consolidations, Mergers, and Sales of Assets
	 	 	61	 
	SECTION 10.02. Liens
	 	 	61	 
	SECTION 10.03. Limitation on Sale and Leaseback Transactions
	 	 	63	 
	SECTION 10.04. Financial Condition Covenants
	 	 	63	 
	SECTION 10.05. Indebtedness
	 	 	63	 
	SECTION 10.06. Transactions with Affiliates
	 	 	63	 
	SECTION 10.07. Restricted Payments
	 	 	63	 
	SECTION 10.08. Investments
	 	 	64	 
	ARTICLE XI
 Events of Default
	 	 	 	 
	ARTICLE XII 
The Administrative Agents
	 	 	 	 
	ARTICLE XIII 
Miscellaneous
	 	 	 	 
	SECTION 13.01. Notices
	 	 	70	 
	SECTION 13.02. Survival of Agreement
	 	 	71	 
	SECTION 13.03. Binding Effect
	 	 	71	 
	SECTION 13.04. Successors and Assigns
	 	 	72	 
	SECTION 13.05. Expenses, Indemnity
	 	 	75	 
	SECTION 13.06. Applicable Law
	 	 	76	 
	SECTION 13.07. Waivers, Amendment
	 	 	76	 
	SECTION 13.08. Entire Agreement
	 	 	77	 
	SECTION 13.09. Severability
	 	 	77	 
	SECTION 13.10. Counterparts
	 	 	77	 
	SECTION 13.11. Headings
	 	 	77	 

iii

 

	 	 	 	 	 
	SECTION 13.12. Right of Setoff
	 	 	77	 
	SECTION 13.13. Jurisdiction: Consent to Service of Process
	 	 	77	 
	SECTION 13.14. Waiver of Jury Trial
	 	 	78	 
	SECTION 13.15. Conversion of Currencies
	 	 	78	 
	SECTION 13.16. Guaranty
	 	 	79	 
	SECTION 13.17. CAM Exchange
	 	 	81	 
	SECTION 13.18. Letters of Credit
	 	 	82	 
	SECTION 13.19. Confidentiality
	 	 	82	 
	SECTION 13.20. Effect of Restatement
	 	 	83	 
	SECTION 13.21. U.S.A. Patriot Act Notice
	 	 	83	 

SCHEDULES:

	 	 	 
	Schedule 2.01

	 	Commitments
	Schedule 10.02

	 	Existing Liens
	Schedule 10.06

	 	Transactions with Affiliates

EXHIBITS:

	 	 	 
	Exhibit A-1

	 	Form of Competitive Bid Request
	Exhibit A-2

	 	Form of Notice of Competitive Bid Request
	Exhibit A-3

	 	Form of Competitive Bid
	Exhibit A-4

	 	Form of Competitive Bid Accept/Reject Letter
	Exhibit A-5

	 	Form of Borrowing Request
	Exhibit B

	 	Form of Assignment and Acceptance
	Exhibit C

	 	Form of Opinion of Baker & Daniels
	Exhibit D

	 	Form of Administrative Questionnaire
	Exhibit E

	 	Form of Borrowing Subsidiary Agreement
	Exhibit F

	 	Form of Borrowing Subsidiary Termination
	Exhibit G

	 	Additional Cost

iv

 

     AMENDED AND RESTATED CREDIT AGREEMENT (the
“Agreement”) dated as of May 24, 2004, among ZIMMER
HOLDINGS, INC., a Delaware corporation (the
“Company”), ZIMMER, INC., a Delaware corporation
(“Zimmer” and, together with the Company, the “U.S.
Borrowers”), ZIMMER K.K., a company organized under
the laws of Japan (the “Japanese Borrower”), ZIMMER
LTD., a company incorporated under the laws of
England and Wales (the “English Borrower”),
CENTERPULSE LTD., a company organized under the laws
of Switzerland (the “Swiss Borrower” and, together
with the English Borrower, the “European Borrowers”),
the BORROWING SUBSIDIARIES (as defined herein), the
LENDERS (as defined herein), JPMORGAN CHASE BANK, a
New York banking corporation, as administrative agent
for the Lenders (in such capacity, the “General
Administrative Agent”), JPMORGAN CHASE BANK, TOKYO
BRANCH, as administrative agent for the Japanese
Lenders (in such capacity, the “Japanese
Administrative Agent”), and J.P. MORGAN EUROPE
LIMITED, as administrative agent for the European
Lenders (in such capacity, the “European
Administrative Agent”).

           The parties hereto agree as follows:

ARTICLE I

Definitions

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

           “364-Day Credit Agreement” shall mean the 364-Day Credit Agreement dated
as of the Restatement Date, among the Company, Zimmer, the borrowing
subsidiaries party thereto, the lenders from time to time party thereto and
JPMCB, as Administrative Agent.

           “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.

           “Acquisition” shall mean the acquisition by the Company of Centerpulse AG,
a Swiss company, and Incentive Capital AG, a Swiss registered investment
company, and all related transactions.

           “Acquisition Date” shall mean October 2, 2003.

           “Additional Cost” shall mean, in relation to any Borrowing denominated in
Sterling for any Interest Period, the cost as calculated by the European
Administrative Agent in accordance with Exhibit G imputed to each Multicurrency
Lender of compliance with the

 

 

mandatory liquid assets requirements of the Bank of England during that
Interest Period, expressed as a percentage.

           “Adjusted Eurocurrency Rate” shall mean, with respect to any Eurocurrency
Borrowing for any Interest Period, an interest rate per annum equal to (a) if
such Eurocurrency Borrowing is denominated in a Currency other than Sterling,
(i) the applicable Eurocurrency Rate for such currency in effect for such
Interest Period divided by (ii) one minus the Eurocurrency Reserve
Requirements, and (b) if such Eurocurrency Borrowing is denominated in
Sterling, the applicable Eurocurrency Rate in effect for such Interest Period
plus Additional Cost.

           “Administrative Agents” shall mean the collective reference to the General
Administrative Agent, the Japanese Administrative Agent and the European
Administrative Agent; each, individually, an “Administrative Agent”.

           “Administrative Fees” shall have the meaning assigned to such term in
Section 6.07(b).

           “Administrative Questionnaire” shall mean an administrative questionnaire
delivered by a Lender pursuant to Section 13.04 in the form of Exhibit D.

           “Advance Agent” shall mean JPMCB, as competitive advance facility
agent.

           “Affiliate” shall mean, when used with respect to a specified Person,
another Person that directly, or indirectly, Controls or is Controlled by or is
under common Control with the Person specified.

           “Alternate Base Rate” shall mean for any day, a rate per annum equal to
the greater of (a) the rate of interest per annum publicly announced from time
to time by JPMCB as its base rate in effect at its principal office in New York
City and (b) 1/2 of one percent above the Federal Funds Effective Rate. If for
any reason JPMCB shall have determined (which determination shall be conclusive
absent manifest error) that it is unable to ascertain the Federal Funds
Effective Rate specified in clause (b) of the first sentence of this
definition, for any reason, including, without limitation, the inability or
failure of JPMCB to obtain sufficient quotations in accordance with the terms
hereof, the Alternate Base Rate shall be determined without regard to clause
(b) of the first sentence of this definition until the circumstances giving
rise to such inability no longer exist. Any change in the Alternate Base Rate
shall be effective on the effective date of any change in such rate.

           “Alternate Currency” shall mean (i) each Committed Currency and (ii)
Japanese Yen.

           “Applicable Administrative Agent” shall mean, (a) with respect to a Loan
or Borrowing denominated in Dollars, and with respect to any payment hereunder
that does not relate to a particular Loan or Borrowing, the General
Administrative Agent, (b) with respect to a Borrowing denominated in Japanese
Yen, the Japanese Administrative Agent, (c) with respect to a Borrowing
denominated in a Committed Currency, the European Administrative Agent and (d)
with respect to a Competitive Borrowing, the Advance Agent.

2

 

           “Applicable Margin” shall mean, for each Loan, the applicable rate per
annum determined pursuant to the Pricing Grid.

           “Applicable Percentage” shall mean, with respect to any Revolving Lender,
the percentage of the total Revolving Commitments represented by such Lender’s
Revolving Commitments. If the Revolving Commitments have terminated or
expired, “Applicable Percentage” shall mean, with respect to any Revolving
Lender, the percentage of the aggregate outstanding principal amount of the
Revolving Credit Exposures and Competitive Loans represented by the aggregate
outstanding principal amount of such Lender’s Revolving Credit Exposures and
Competitive Loans.

           “Arrangers” shall mean J.P. Morgan Securities Inc., CSFB and Banc of
America Securities LLC.

           “Assignment and Acceptance” shall mean an assignment and acceptance
entered into by a Lender and an assignee in the form of Exhibit B, or such
other form as shall be approved by the General Administrative Agent.

           “Bank of America” shall mean Bank of America, N.A.

           “Basis Point” shall mean 1/100th of 1%.

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

           “Board of Directors” shall mean either the board of directors of the
Company or any duly authorized committee thereof or any committee of officers
of the Company acting pursuant to authority granted by the board of directors
of the Company or any committee of such board.

           “Borrowers” shall mean the U.S. Borrowers, the European Borrowers, the
Japanese Borrower or any Borrowing Subsidiary.

           “Borrower Obligations” shall mean the due and punctual payment of (i) the
principal of and interest on any Loans made by the Lenders to the Borrowers
pursuant to this Agreement, when and as due, whether at maturity, by
acceleration, upon one or more dates set for prepayment or otherwise and (ii)
all other monetary obligations, including fees, costs, expenses and indemnities
(including the obligations described in
Section 2.04) of the Borrowers to the Lenders under this Agreement and the
other Loan Documents.

           “Borrowing” shall mean (a) Loans of the same Class, Type and Currency,
made, converted or continued on the same date and, in the case of Eurocurrency
Loans, as to which a single Interest Period is in effect, (b) a Competitive
Loan or group of Competitive Loans of the same Type made on the same date and
as to which a single Interest Period is in effect or (c) a Swingline Loan.

           “Borrowing Request” shall mean a request by any Borrower for a Borrowing
in accordance with Section 2.03.

3

 

           “Borrowing Subsidiary” shall mean any Wholly Owned Subsidiary of the
Company designated as a Borrowing Subsidiary by the Company pursuant to Section
2.04.

           “Borrowing Subsidiary Agreement” shall mean a Borrowing Subsidiary
Agreement substantially in the form of Exhibit E.

           “Borrowing Subsidiary Termination” shall mean a Borrowing Subsidiary
Termination substantially in the form of Exhibit F.

           “Business Day” shall mean any day (other than a day which is a Saturday,
Sunday or legal holiday in the State of New York) on which banks are open for
business in New York City; provided, however, that, when used in connection
with a Eurocurrency Loan, the term “Business Day” shall also exclude any day on
which banks are not open for dealings in dollar deposits in the London
interbank market, or in the city which is the principal financial center of the
country of issuance of the applicable Alternate Currency.

           “CAM” shall mean the mechanism for the allocation and exchange of
interests in Loans and other extensions of credit under the several Classes and
collections thereunder established under Section 13.17.

           “CAM Exchange” shall mean the exchange of the Lender’s interests provided
for in Section 13.17.

           “CAM Exchange Date” shall mean any date on which either (a) an Event of
Default under paragraph (g) or (h) of Article XI has occurred with respect to a
Borrower or (b) the Revolving Commitments shall have been terminated prior to
the Revolving Maturity Date and/or the Loans shall have been declared
immediately due and payable, in either case pursuant to Article XI.

           “CAM Percentage” shall mean, as to each Lender, a fraction, expressed as a
decimal, of which (a) the numerator shall be the aggregate Dollar Equivalent
(determined on the basis of Exchanges Rates prevailing on the CAM Exchange
Date) of the Designated Obligations owed to such Lender (whether or not at the
time due and payable) immediately prior to the CAM Exchange Date and (b) the
denominator shall be
the aggregate Dollar Equivalent (as so determined) of the Designated
Obligations owed to all the Lenders (whether or not at the time due and
payable) immediately prior to CAM Exchange Date.

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

           “Cash Equivalents” shall mean (a) marketable direct obligations issued by,
or unconditionally guaranteed or insured by, the United States Government or
issued by any agency thereof and backed by the full faith and credit of the
United States, in each case maturing within one year from the date of
acquisition; (b) certificates of deposit, time deposits, eurodollar time

4

 

deposits, bankers’ acceptances or overnight bank deposits having maturities of
six months or less from the date of acquisition issued by any Lender or by any
commercial bank organized under the laws of the United States or any state
thereof whose short-term commercial paper rating at the time of acquisition is
at least B or the equivalent thereof by Fitch IBCA, A-3 or the equivalent
thereof by S&P, or P-3 or the equivalent thereof by Moody’s; (c) commercial
paper of an issuer rated at least A-2 or the equivalent thereof at the time of
acquisition by S&P or at least P-2 or the equivalent thereof at the time of
acquisition by Moody’s, or carrying an equivalent rating by a nationally
recognized rating agency, if both of the two named rating agencies cease
publishing ratings of commercial paper issuers generally, and maturing within
six months from the date of acquisition; (d) repurchase obligations of any
Lender or of any commercial bank satisfying the requirements of clause (b) of
this definition, having a term of not more than 30 days, with respect to
securities issued or fully guaranteed or insured by the United States
government; (e) securities or marketable direct obligations with maturities of
one year or less from the date of acquisition issued or fully guaranteed by any
state, commonwealth or territory of the United States, by any political
subdivision or taxing authority of any such state, commonwealth or territory or
by any foreign government, the securities of which state, commonwealth,
territory, political subdivision, taxing authority or foreign government (as
the case may be) are rated at least A by S&P or A by Moody’s; (f) securities
with maturities of six months or less from the date of acquisition backed by
standby letters of credit issued by any Lender or any commercial bank
satisfying the requirements of clause (b) of this definition; or (g) shares of
money market mutual or similar funds which invest exclusively in assets
satisfying the requirements of clauses (a) through (f) of this definition;
provided, however, that, in case of any investment by a Foreign Subsidiary,
“Cash Equivalents” shall also include: (i) certificates of deposit, time
deposits, Eurodollar time deposits, bankers’ acceptances or overnight bank
deposits having maturities of six months or less from the date of acquisition
issued by any commercial bank located in the same jurisdiction as such Foreign
Subsidiary whose
short-term commercial paper rating at the time of acquisition would meet or
exceed those ratings applicable to a Lender set forth in clause (b) hereof,
(ii) direct obligations of the sovereign nation (or any agency thereof) in
which such Foreign Subsidiary is organized or is conducting business or in
obligations fully and unconditionally guaranteed by such sovereign nation (or
any agency thereof), in each case maturing within one year from the date of
acquisition, (iii) investments of the type and maturity described in clauses
(c) through (f) above of obligors located in the same jurisdiction as such
Foreign Subsidiary, which Investments or obligors (or the parent of any such
obligor) have ratings described in clauses (c) through (f) or equivalent
ratings from comparable foreign rating agencies and (iv) shares of money market
mutual or similar funds which invest exclusively in assets otherwise satisfying
the requirements of this proviso.

           “Change in Control” shall be deemed to have occurred if (a) any Person or
group of Persons (other than (i) the Company, (ii) any Subsidiary or (iii) any
employee or director benefit plan or stock plan of the Company or a Subsidiary
or any trustee or fiduciary with respect to any such plan when acting in that
capacity or any trust related to any such plan) shall have acquired beneficial
ownership of shares representing more than 20% of the combined voting power
represented by the outstanding Voting Shares of the Company (within the meaning
of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended,
and the applicable rules and regulations thereunder) or (b) during any period
of 12 consecutive months, commencing before and ending after, or commencing
after the Restatement Date, individuals who on the first day of such period
were directors of the Company (together with any

5

 

replacement or additional directors who were nominated or elected by a majority
of directors then in office) cease to constitute a majority of the Board of
Directors of the Company.

           “Change in Law” shall mean (a) the adoption of any law, rule or regulation
after the Effective Date, (b) any change in any law, rule or regulation or in
the interpretation or application thereof by any Governmental Authority after
the Effective Date or (c) compliance by any Lender (or, for purposes of Section
6.10, by any lending office of such Lender or by such Lender’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 Effective
Date.

           “Class” when used in reference to any Loan or Borrowing, refers to whether
such Loan, or the Loans comprising such Borrowing, are Existing Term Loans, New
Term Loans, U.S. Revolving Loans, Multicurrency Revolving Loans, Japanese
Revolving Loans, Swingline Loans or Competitive Loans and when used in
reference to any Commitment, refers to whether such Commitment is a U.S.
Revolving Commitment, a Term Loan Commitment, a Multicurrency Commitment or a
Japanese Commitment.

           “Code” shall mean the Internal Revenue Code of 1986, as amended.

           “Commitments” shall mean the collective reference to the Term Loan
Commitments, the U.S. Revolving Commitments, the Multicurrency Commitments and
the Japanese Commitments.

           “Committed Currency” shall mean (a) Euro, Sterling and Swiss Francs and
(b) any other Eligible Currency that shall be designated by the Company in a
notice delivered to the General Administrative Agent and approved by the
General Administrative Agent and all the Multicurrency Lenders as a Committed
Currency.

           “Company” shall have the meaning set forth in the preamble.

           “Company Stock” shall mean the common stock, $0.01 par value per share, of
the Company, and the associated preferred stock purchase rights.

           “Competitive Bid” shall mean an offer by a Lender to make a Competitive
Loan pursuant to Article III.

           “Competitive Bid Accept/Reject Letter” shall mean a notification made by
the Company pursuant to Section 3.01(d) in the form of Exhibit A-4.

           “Competitive Bid Rate” shall mean, as to any Competitive Bid, the
Competitive Loan Margin or the Fixed Rate, as applicable, offered by the Lender
making such Competitive Bid.

           “Competitive Bid Request” shall mean a request made pursuant to Article
III in the form of Exhibit A-1.

6

 

           “Competitive Borrowing” shall mean a Borrowing consisting of a Competitive
Loan or concurrent Competitive Loans from the Lender or Lenders whose
Competitive Bids for such Borrowing have been accepted under the bidding
procedure described in Article III.

           “Competitive Loan” shall mean a Loan made pursuant to Article III. Each
Competitive Loan shall be a Eurocurrency Competitive Loan or a Fixed Rate Loan.

           “Competitive Loan Exposure” shall mean, with respect to any Lender at any
time, the aggregate principal amount of the outstanding Competitive Loans of
such Lender.

           “Competitive Loan Margin” shall mean, with respect to any Competitive Loan
bearing interest at a rate based on the Eurocurrency Rate, the marginal rate of
interest, if any, to be added to or subtracted from the Eurocurrency Rate in
order to determine the interest rate applicable to such Loan, as specified by
the Lender making such Loan in its related Competitive Bid.

           “Conduit Lender” means any special purpose entity organized and
administered by any Lender for the purpose of making Loans otherwise required
to be made by such Lender and designated by such Lender in a written instrument
subject to the consent of the Company (such consent not to be unreasonably
withheld); provided, that the designation by any Lender of a Conduit Lender
shall not relieve the designating
Lender of any of its obligations to fund a Loan under this Agreement if,
for any reason, its Conduit Lender fails to fund any such Loan, and the
designating Lender (and not the Conduit Lender) shall have the sole right and
responsibility to deliver all consents and waivers required or requested under
this Agreement with respect to its Conduit Lender, and provided, further, that
no Conduit Lender shall (a) be entitled to receive any greater amount pursuant
to Section 6.10, 6.11, 6.12, or 13.05 than the designating Lender would have
been entitled to receive in respect of the extensions of credit made by such
Conduit Lender or (b) be deemed to have any Commitment.

           “Consolidated EBITDA” shall mean, for any period, Consolidated Net Income
for such period plus, without duplication and to the extent reflected as a
charge in the statement of such Consolidated Net Income for such period, the
sum of (a) income tax expense, (b) interest expense, amortization or write-off
of debt discount and debt issuance costs and commissions, discounts and other
fees and charges associated with Debt (including the Loans), (c) depreciation
and amortization expense (plus, to the extent GAAP then includes amounts as
such expense, amounts of such expenses (calculated under the current GAAP) for
any prior portion of such period if not otherwise so included), (d)
amortization of intangibles (including goodwill) and organization costs (e) any
extraordinary, unusual or non-recurring non-cash expenses or losses (including,
whether or not otherwise includable as a separate item in the statement of such
Consolidated Net Income for such period, non-cash losses on sales of assets
outside of the ordinary course of business), (f) one-time integration costs in
connection with the Acquisition incurred during the first 12 months (or 18
months in the case of costs associated with the closure of manufacturing
facilities) after the Acquisition Date in an amount in the aggregate not to
exceed $200,000,000, and one-time transaction costs (other than integration
costs) in connection with the Acquisition incurred on or before the Acquisition
Date or during the first three months after the Acquisition Date, in each case
as set forth in reasonable detail on a schedule prepared by the Company and
delivered to the Lenders with the financial statements for the relevant

7

 

period, (g) purchase accounting adjustments (including inventory step-ups and
write-downs of in-process research and development) in connection with the
Acquisition and made within the first 12 months of the Acquisition Date, (h)
any non-cash expenses relating to stock option exercises (if applicable
accounting rules so require) and (i) any other non-cash charges and minus, to
the extent included in the statement of such Consolidated Net Income for such
period, the sum of (a) interest income, (b) any extraordinary, unusual or
non-recurring income or gains (including, whether or not otherwise includable
as a separate item in the statement of such Consolidated Net Income for such
period, gains on the sales of assets outside of the ordinary course of
business) and (c) any other non-cash income, all as determined on a
consolidated basis. For the purposes of calculating Consolidated EBITDA for any
period of four consecutive fiscal quarters (each, a “Reference Period”)
pursuant to any determination of the Consolidated Leverage Ratio, (i) if at any
time during such Reference Period the Company or any Subsidiary shall have made
any Material Disposition, the Consolidated EBITDA for such Reference Period
shall be reduced by an amount equal to the Consolidated EBITDA (if positive)
attributable to the property that is the subject of such Material Disposition
for such Reference Period or increased by an amount equal to the Consolidated
EBITDA (if negative) attributable thereto for such Reference Period and (ii) if during
such Reference Period the Company or any Subsidiary shall have made a Material
Acquisition, Consolidated EBITDA for such Reference Period shall be calculated
after giving pro forma effect thereto as if such Material Acquisition occurred
on the first day of such Reference Period. As used in this definition,
“Material Acquisition” means any acquisition of property or series of related
acquisitions of property that (a) constitutes assets comprising all or
substantially all of an operating unit of a business or constitutes all or
substantially all of the common stock of a Person and (b) involves the payment
of consideration by the Company and its Subsidiaries in excess of $25,000,000;
and “Material Disposition” means any Disposition of property or series of
related Dispositions of property that yields gross proceeds to the Borrower or
any of its Subsidiaries in excess of $25,000,000.

           “Consolidated Interest Coverage Ratio” shall mean, for any period, the
ratio of (a) Consolidated EBITDA for such period to (b) Consolidated Interest
Expense for such period.

           “Consolidated Interest Expense” shall mean, for any period, total cash interest
expense (including that attributable to Capital Lease Obligations) of the
Company and its Subsidiaries for such period with respect to all outstanding
Debt of the Company and its Subsidiaries (including all commissions, discounts
and other fees and charges owed with respect to letters of credit and bankers’
acceptance financing), minus interest income on cash equivalent investments.

           “Consolidated Leverage Ratio” shall mean, as at the last day of any
period, the ratio of (a) the sum of (i) Consolidated Total Debt plus, to the
extent not included in the definition of Consolidated Total Debt, (ii) the
aggregate amount of financing provided by third-parties in connection with
Permitted Receivables Securitizations on such day to (b) Consolidated EBITDA
for such period.

           “Consolidated Net Income” shall mean, for any period, the consolidated net
income (or loss) of the Company and its Subsidiaries, determined on a
consolidated basis in accordance with GAAP; provided that there shall be
excluded, without duplication, (a) the income (or deficit) of any Person
accrued prior to the date it becomes a Subsidiary of the

8

 

Company or is merged into or consolidated with the Company or any of its
Subsidiaries, (b) the income (or deficit) of any Person (other than a
Subsidiary of the Company) in which the Company or any of its Subsidiaries has
an ownership interest, except to the extent that any such income is actually
received by the Company or such Subsidiary in the form of dividends or similar
distributions and (c) the undistributed earnings of any Subsidiary of the
Company to the extent that the declaration or payment of dividends or similar
distributions by such Subsidiary is not at the time permitted by the terms of
any Contractual Obligation (other than under any Loan Document) or Requirement
of Law applicable to such Subsidiary.

           “Consolidated Net Tangible Assets” shall mean, with respect to the
Company, the total amount of its assets (less applicable reserves and other
properly deductible items) after deducting (i) all current liabilities (excluding
the amount of those which are by their terms extendable or renewable at the
option of the obligor to a date more than 12 months after the date as of which
the amount is being determined) and (ii) all goodwill, tradenames, trademarks,
patents, unamortized debt discount and expense and other like intangible
assets, all as set forth on the most recent balance sheet of the Company and
its consolidated subsidiaries and determined on a consolidated basis in
accordance with GAAP.

           “Consolidated Total Debt” shall mean, at any date, the aggregate stated
balance sheet amount of all Debt of the Company and its Subsidiaries at such
date, determined on a consolidated basis in accordance with GAAP, minus up to
$50,000,000 of cash and cash equivalent investments held in the United States
by the U.S. Borrowers and the Subsidiary Guarantors; provided that such cash
and cash equivalent investments are free of any Liens.

           “Contractual Obligation” shall mean, as to any Person, any provision of
any security issued by such Person or of any agreement, instrument or other
undertaking to which such Person is a party or by which it or any of its
property is bound.

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

           “Credit Party” shall mean any Borrower or any Subsidiary
Guarantor.

           “CSFB” shall mean Credit Suisse First Boston, a bank organized under the
laws of Switzerland, acting through its Cayman Islands branch.

           “Currency” shall mean Dollars or any Alternate Currency.

           “Debt” of any Person, shall mean, without duplication, (i) all obligations
of such Person represented by notes, bonds, debentures or similar evidences of
indebtedness; (ii) all indebtedness of such Person for borrowed money or for
the deferred purchase price of property or services other than, in the case of
any such deferred purchase price, on normal trade terms, (iii) all rental
obligations of such Person as lessee under leases which shall have been or
should be recorded as Capital Lease Obligations, (iv) all indebtedness of such
Person created or arising under any conditional sale or other title retention
agreement with respect to property acquired by such Person (even though the
rights and remedies of the seller or lender under such agreement in

9

 

the event of default are limited to repossession or sale of such property), (v)
all obligations, contingent or otherwise, of such Person as an account party or
applicant under or in respect of acceptances, letters of credit, surety bonds
or similar arrangements, (vi) the liquidation value of all preferred capital
stock of such Person which is redeemable at the option of the holder thereof or
which may become (by scheduled or mandatory redemption) due within one year of
the Term Loan Maturity Date, (vii) all Guarantees of such Person in respect of
obligations of the kind referred to in clauses (i)
through (vi) above, (viii) all obligations of the kind referred to in clauses
(i) through (vii) above secured by (or for which the holder of such obligation
has an existing right, contingent or otherwise, to be secured by) any Lien on
property (including accounts and contract rights) owned by the applicable
Person, whether or not such Person has assumed or become liable for the payment
of such obligation and (ix) for the purposes of paragraph (f) of Article XI
only, all obligations in respect of Hedge Agreements. The Debt of any Person
shall include Debt of any other entity (including any partnership in which such
Person is a general partner) to the extent such Person is liable therefore as a
result of such Person’s ownership interest in or other relationship with such
entity, except to the extent the terms of such Debt expressly provide that such
Person is not liable therefor.

           “Default” shall mean 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.

           “Designated Obligations” shall mean all obligations of the Credit Parties
with respect to (a) principal of and interest on the Loans of each Class (other
than Competitive Loans), (b) unreimbursed LC Disbursements and interest thereon
and (c) all facility fees and participation fees under Section 6.07 with
respect thereto.

           “Dollar Equivalent” shall mean, with respect to an amount denominated in
any Alternate Currency, the equivalent in Dollars of such amount determined at
the Exchange Rate determined by the General Administrative Agent on the date of
determination of such equivalent. In making any determination of the Dollar
Equivalent for purposes of calculating the amount of Loans to be borrowed from
the respective Lenders on any date, the Applicable Administrative Agent shall
use the relevant Exchange Rate in effect on the date on which the relevant
Borrower delivers a borrowing notice for such Loans pursuant to the provisions
of this Agreement.

           “Dollars” or “$” shall mean lawful money of the United States of
America.

           “Domestic Wholly Owned Subsidiary” shall mean a Wholly Owned Subsidiary
that is incorporated or organized under the laws of the United States or any
state or political subdivision thereof.

           “Effective Date” shall mean May 24, 2004.

           “Eligible Currency” shall mean at any time any currency (other than
Dollars, Euro, Sterling, Swiss Francs or Japanese Yen) that is freely tradeable
and exchangeable into Dollars in the London market and for which an Exchange
Rate can be determined.

           “English Borrower” shall have the meaning set forth in the
Preamble.

10

 

           “Environmental and Safety Laws” shall mean any and all applicable current
and future treaties, laws (including without limitation common law),
regulations, enforceable requirements, binding determinations, orders, decrees,
judgments,
injunctions, permits, approvals, authorizations, licenses, permissions, or
binding agreements issued, promulgated or entered by any Governmental
Authority, relating to the environment, to employee health or safety as it
pertains to the use or handling of, or exposure to, any Hazardous Substance, to
preservation or reclamation of natural resources or to the management, release
or threatened release of any Hazardous Substance, including without limitation
the Hazardous Materials Transportation Act, the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended by the Superfund
Amendments and Reauthorization Act of 1986, the Solid Waste Disposal Act, as
amended by the Resource Conservation and Recovery Act of 1976 and the Hazardous
and Solid Waste Amendments of 1984, the Federal Water Pollution Control Act, as
amended by the Clean Water Act of 1977, the Clean Air Act of 1970, as amended,
the Toxic Substances Control Act of 1976, the Occupational Safety and Health
Act of 1970, as amended, the Emergency Planning acid Community Right-to-Know
Act of 1986, the Safe Drinking Water Act of 1974, as amended, any similar or
implementing state law, all amendments of any of them, and any regulations
promulgated under any of them.

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

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

           “ERISA Termination Event” shall mean (i) a “Reportable Event” described in
Section 4043 of ERISA and the regulations issued thereunder (other than a
“Reportable Event” not subject to the provision for 30-day notice to the PBGC
under such regulations), or (ii) the withdrawal of the Company or any of its
ERISA Affiliates from a “single employer” Plan during a plan year in which it
was a “substantial employer”, both of such terms as defined in Section 4001 (a)
of ERISA, or (iii) the incurrence of liability under Title IV of ERISA with
respect to the termination of a Plan, or (iv) the institution of proceedings to
terminate a Plan by the PBGC or (v) the receipt by the Company or any ERISA
Affiliate of any notice (whether or not written) from the PBGC of any event or
condition which the PBGC asserts is reasonably likely to constitute grounds
under Section 4042 of ERISA to terminate, or to appoint a trustee to
administer, any Plan or (vi) the partial or complete withdrawal of the Company
or any ERISA Affiliate of the Company from, or the Insolvency or Reorganization
of, a Multiemployer Plan as defined in Section 4001(a)(3) of ERISA.

           “Euro”
and “€” shall mean the single currency of the participating member
states of the European Union as constituted by the Treaty of Rome of March 25,
1957 (as amended by the Single European Act 1986, the Maastricht Treaty which
was signed at Maastricht on February 7, 1992 and came into force on November 1,
1993), the Amsterdam Treaty (which was signed at Amsterdam on October 2, 1997
and came into force on May 1, 1999) and the Nice Treaty (which was signed on
February 26, 2001), each as amended from time to time and as

11

 

referred to in legislative measures of the European Union for the introduction
of, changeover to or operating of the Euro in one or more member states.

           “Eurocurrency” 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 a Eurocurrency Rate.

           “Eurocurrency Rate” shall mean (a) with respect to any Eurocurrency
Borrowing (other than Borrowings denominated in Euro or Japanese Yen) for any
Interest Period, the rate appearing on Page 3740 or Page 3750, as the case may
be, of Dow Jones Markets (or on any successor or substitute page of such
service, or any successor to or substitute for such service, providing rate
quotations comparable to those currently provided on such page of such service,
as determined by the General Administrative Agent from time to time for
purposes of providing quotations of interest rates applicable to deposits in
Dollars or the applicable Alternate Currency in the London interbank market) at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, as the rate for deposits in Dollars or
the applicable Alternate Currency with a maturity comparable to such Interest
Period, (b) with respect to any Eurocurrency Borrowing denominated in Euro for
any Interest Period, the rate appearing on page 248 of Dow Jones Markets (it
being understood that this rate is the Euro interbank offered rate (known as
the “EURIBOR Rate”) sponsored by the Banking Federation of the European Union
(known as the “FBE”) and the Financial Markets Association (known as the
“ACI”)) at approximately 11:00 a.m., London time, two Business Days prior to
the commencement of such Interest Period, as the rate for deposits in Euro with
a maturity comparable to such Interest Period, and (c) with respect to any
Eurocurrency Borrowing denominated in Japanese Yen for any Interest Period, the
rate appearing on the TIBM Page under the caption “Average 10 Banks” of Reuters
(or on any successor or substitute page of such service, or any successor to or
substitute for such service, providing rate quotations comparable to those
currently provided on such page of such service, as determined by General
Administrative Agent from time to time for purposes of providing quotations of
interest rates applicable to deposits in Japanese Yen in the Tokyo interbank
market) at approximately 11:00 a.m., Tokyo time, two Business Days prior to the
commencement of such Interest Period, as the rate for deposits in Japanese Yen
with a maturity comparable to such Interest Period. In the event that such rate
is not available at such time for any reason, then the “Eurocurrency Rate” with
respect to such Eurocurrency Borrowing for such Interest Period shall be the
rate per annum (rounded upwards, if necessary, to the next Basis Point) equal
to the arithmetic average of the rates at which deposits in Dollars or the
applicable Alternate Currency approximately equal in principal amount to such
Borrowing and for a maturity comparable to such Interest Period are offered (x)
with respect to any Eurocurrency Borrowing (other than Borrowings denominated
in Japanese Yen), to the principal London offices of the Reference Lenders (or,
if any Reference Lender does not at the time maintain a London office, the
principal London office of any Affiliate of such Reference Lender) in
immediately available funds in the London interbank market at approximately
11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period and (y) with respect to any Eurocurrency Borrowing denominated
in Japanese Yen, to the principal Tokyo offices of the Reference Lenders
(or, if any Reference Lender does not at the time maintain a Tokyo office, the
principal Tokyo office of any Affiliate of such Reference Lender) in
immediately available funds in the Tokyo interbank market at approximately
11:00 a.m., Tokyo time, two Tokyo Business Days prior to the

12

 

commencement of such Interest Period; provided, however, that, if only two
Reference Lenders notify the General Administrative Agent of the rates offered
to such Reference Lenders (or any Affiliates of such Reference Lenders) as
aforesaid, the Eurocurrency Rate with respect to such Eurocurrency Borrowing
shall be equal to the arithmetic average of the rates so offered to such
Reference Lenders (or any such Affiliates).

           “Eurocurrency Reserve Requirements” shall mean, with respect to the
Eurocurrency Loans of any Lender for any day, that percentage (expressed as a
decimal) that is in effect on such day, as prescribed by any Governmental
Authority for determining the reserve, liquid asset or similar requirement with
respect to such Eurocurrency Loans for such Lender that is subject to the rules
and regulations of such Governmental Authority.

           “European Administrative Agent” shall mean J.P. Morgan Europe Limited,
together with its affiliates (it being understood that any notices required to
be delivered to the European Administrative Agent under this Agreement need not
be delivered to such affiliates), as administrative agent for the Multicurrency
Lenders under this Agreement and the other Loan Documents, and any successor
thereto appointed pursuant to Article XII.

           “European Borrowers” shall have the meaning set forth in the preamble, and
when used to describe a Borrower who is permitted to borrow under the
Multicurrency Commitment, shall mean and include any Borrowing Subsidiary
organized and existing under the laws of a jurisdiction whose currency is a
Committed Currency.

           “Event of Default” shall have the meaning assigned to such term in
Article XI.

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

           “Exchange Rate” shall mean, with respect to any Alternate Currency on a
particular date, the rate at which such Alternate Currency may be exchanged
into Dollars, as set forth on such date on the applicable Reuters currency page
with respect to such Alternate Currency; provided that, the Company may make a
one time election with the approval of the General Administrative Agent (such
approval not to be unreasonably withheld) to use Bloomberg currency pages to
determine the Exchange Rate instead of the Reuters currency pages. In the event
that such rate does not appear on the applicable Reuters currency page or
Bloomberg currency page, as the case may be, the Exchange Rate with respect to
such Alternate Currency shall be determined by reference to such other publicly
available service for displaying exchange rates as may be agreed upon by the
General Administrative Agent and the Company or, in the absence of such
agreement, such Exchange Rate shall instead be JPMCB’s spot rate of exchange in the
London interbank or other market where its foreign currency exchange operations
in respect of such Alternate Currency are then being conducted, at or about
10:00 a.m., Local Time, at such date for the purchase of Dollars with such
Alternate Currency, for delivery two Business Days later; provided, however,
that if at the time of any such determination, for any reason, no such spot
rate is being quoted, the General Administrative Agent may use any reasonable
method it deems appropriate to determine such rate, and such determination
shall be conclusive absent manifest error.

13

 

           “Existing Credit Agreement” shall mean the Amended and Restated Revolving
Credit and Term Loan Agreement dated as of September 12, 2003, among the
Company, Zimmer, the Japanese Borrower, the English Borrower, the borrowing
subsidiaries party thereto, the lenders from time to time party thereto and the
Administrative Agents.

           “Existing Term Loans” shall mean the $450,000,000 term loans outstanding
under the Existing Credit Agreement.

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

           “Financial Officer” of any corporation shall mean the chief financial
officer, principal accounting officer, vice president of finance, controller or
treasurer of such corporation.

           “Fixed Rate” shall mean, with respect to any Competitive Loan (other than
a Eurocurrency Competitive Loan), the fixed rate of interest per annum
specified by the Lender making such Competitive Loan in its related Competitive
Bid.

           “Fixed Rate Loan” shall mean a Competitive Loan bearing interest
at a Fixed Rate.

           “Foreign Borrowing Subsidiary” shall mean any Borrowing Subsidiary that is
a Foreign Subsidiary.

           “Foreign Subsidiary” shall mean any Subsidiary that is not organized under
the laws of the United States or any state or political subdivision thereof.

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

           “General Administrative Agent” shall mean JPMCB, together with its
affiliates (it being understood that any notices required to be delivered under
this Agreement to the General Administrative Agent need not be delivered to
such affiliates), as general administrative agent for the Lenders under this
Agreement and the other Loan Documents, and any successor thereto appointed
pursuant to Article XII.

           “Governmental Authority” shall mean the government of any nation,
including, but not limited to, the United States of America, 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.

14

 

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

           “Guarantor” shall mean the collective reference to the Company and the
Subsidiary Guarantors.

           “Hazardous Substances” shall mean any toxic, radioactive, mutagenic,
carcinogenic, noxious, caustic or otherwise hazardous substance, material or
waste, including petroleum, its derivatives, by-products and other
hydrocarbons, including, without limitation, polychlorinated biphenyls
(“PCBs”), asbestos or asbestos-containing material, and any substance, waste or
material regulated or that could reasonably be expected to result in liability
under Environmental and Safety Laws.

           “Hedge Agreements” shall mean all interest rate swaps, caps or collar
agreements or similar arrangements dealing with interest rates or currency
exchange rates or the exchange of nominal interest obligations, either
generally or under specific contingencies.

           “Inactive Subsidiary” shall mean, at any time, any Subsidiary that (a) has
consolidated assets of less than $50,000 at such time, (b) has not conducted
any business or other operations during the prior 12-month period and (c) has
no outstanding Debt at such time.

           “Insolvency” shall mean with respect to any Multiemployer Plan, the
condition that such plan is insolvent within the meaning of Section 4245 of
ERISA.

           “Interest Election Request” shall mean a request by a Borrower to convert
or continue a Borrowing in accordance with Section 6.02.

           “Interest Payment Date” shall mean (a) with respect to any ABR Loan, the
last day of each March, June, September and December, (b) with respect to any
Eurocurrency Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the case of a Eurocurrency
Borrowing with an Interest Period of more than three months’ duration, each day
prior to the last day of such Interest Period that occurs at intervals of three
months’ duration after the first day of such Interest Period and (c) with
respect to any Fixed Rate 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 Fixed Rate
Borrowing with an Interest Period of more than 90 days’ duration (unless
otherwise specified in the applicable Competitive Bid Request), each day prior

15

 

to the last day of such Interest Period that occurs at intervals of 90 days’
duration after the first day of such Interest Period, and any other dates that
are specified in the applicable Competitive Bid Request as Interest Payment
Dates with respect to such Borrowing.

           “Interest Period” shall mean (a) as to any Eurocurrency Borrowing, the
period commencing on the date of such Borrowing and ending either (x) on the
day that is two weeks thereafter or (y) on the numerically corresponding day in
the calendar month that is 1, 2, 3 or 6 (or, with the consent of all Lenders
making such Loan, 9 or 12) months thereafter, in each case as the applicable
Borrower may elect, and (b) as to any Fixed Rate Borrowing, the period (which
shall not be less than seven days or more than 360 days) commencing on the date
of such Borrowing and ending on the date specified in the applicable
Competitive Bid Request; provided, that (i) if any Interest Period would end on
a day other than a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless, in the case of a Eurocurrency Borrowing
only, such next succeeding Business Day would fall in the next calendar month,
in which case such Interest Period shall end on the next preceding Business Day
and (ii) any Interest Period referred to in clause (a) (y) above that commences
on the last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the last calendar month of such Interest
Period) shall end on the last Business Day of the last calendar month of such
Interest Period. For purposes hereof, the date of a Borrowing initially shall
be the date on which such Borrowing is made and, in the case of a Revolving
Borrowing, thereafter shall be the effective date of the most recent conversion
or continuation of such Borrowing.

           “Investment Grade Standing” shall exist at any time when the actual
Ratings are at or above BBB- from S&P and at or above Baa3 from Moody’s. If
either of S&P or Moody’s shall change its system of classifications after the
Restatement Date, Investment Grade Standing shall exist at any time when the
actual Rating is at or above the new Rating which most closely corresponds to
the above-specified level under the previous rating system.

           “Issuing Lender” shall mean JPMCB in its capacity as the issuer of Letters
of Credit hereunder, and its successors in such capacity as provided in Article
IV. The Issuing Lender may, in its discretion, arrange for one or more Letters
of Credit to be issued by Affiliates of the Issuing Lender, in which case the
term “Issuing Lender” shall include any such Affiliate with respect to Letters
of Credit issued by such Affiliate.

           “Japanese Administrative Agent” shall mean JPMorgan Chase Bank, Tokyo
Branch, together with its affiliates (it being understood that any notices
required to be delivered to the Japanese Administrative Agent under this
Agreement need not be delivered to such affiliates), as administrative agent
for the Japanese Lenders under this Agreement and the other Loan Documents, and
any successor thereto appointed pursuant to Article XII.

           “Japanese Borrower” shall have the meaning set forth in the preamble and,
when used to describe the Borrowers who are permitted to borrow under the
Japanese Commitment, also shall mean and include any Borrowing Subsidiary
organized and existing under the laws of Japan.

16

 

           “Japanese Commitment” shall mean, as to any Japanese Lender at any time,
its obligation to make Japanese Revolving Loans to the Japanese Borrower and
the U.S. Borrowers in an aggregate Dollar Equivalent amount not to exceed at
any one time outstanding the amount set forth opposite such Japanese Lender’s
name in Part B of Schedule 2.01 under the heading “Japanese Commitment”. The
initial aggregate amount of the Japanese Commitments is $100,000,000.

           “Japanese Lender” shall mean any Lender that has a Japanese Commitment or
an outstanding Japanese Revolving Loan.

           “Japanese Revolving Credit Exposure” shall mean, as at any date of
determination with respect to any Japanese Lender, an amount equal to the
Dollar Equivalent of the Japanese Revolving Loans of such Lender on such date.

           “Japanese Revolving Loan” shall have the meaning given to such term in
Section 2.01(c).

           “Japanese Yen” and “¥” shall mean lawful money of Japan.

           “JPMCB” shall mean JPMorgan Chase Bank, a New York banking
corporation.

           “LC Disbursement” shall mean a payment made by the Issuing Lender pursuant
to a Letter of Credit.

           “LC Exposure” shall mean, at any time, the sum of (a) the aggregate
undrawn amount of all outstanding Letters of Credit at such time plus (b) the
aggregate amount of all LC Disbursements that have not yet been reimbursed by
or on behalf of the
Borrower at such time. The LC Exposure of any U.S. Revolving Lender at any
time shall be its U.S. Revolving Commitment Percentage of the total LC Exposure
at such time.

           “Lenders” shall mean (a) the financial institutions listed on Part A, Part
B and Part C of Schedule 2.01 (other than any such financial institution that
has ceased to be a party hereto, pursuant to an Assignment and Acceptance) and
(b) any financial institution that has become a party hereto pursuant to an
Assignment and Acceptance; provided, that unless the context requires
otherwise, each reference herein to the Lenders shall be deemed to include any
Conduit Lender.

           “Letter Agreement” shall mean the Letter Agreement dated as of April 7,
2004, between the Company and the General Administrative Agent.

           “Letter of Credit” shall mean any Letter of Credit issued pursuant
to Article IV.

           “Lien” shall mean any mortgage, lien, pledge, encumbrance, charge or security
interest.

           “Loan Documents” shall mean this Agreement, each Borrowing Subsidiary
Agreement, each Borrowing Subsidiary Termination and each promissory note held
by a Lender pursuant to Section 6.04(g).

17

 

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

           “Local Time” shall mean (a) with respect to a Loan or Borrowing
denominated in Dollars, New York City time, (b) with respect to a Loan or
Borrowing denominated in a Committed Currency, London time and (c) with respect
to a Loan or Borrowing denominated in Japanese Yen, Tokyo time.

           “Margin Regulations” shall mean Regulations T, U and X of the Board as
from time to time in effect, and all official rulings and interpretations
thereunder or thereof.

           “Material Adverse Effect” shall mean a material adverse effect on the
business, operations, properties or financial condition of the Company and its
consolidated Subsidiaries, taken as a whole.

           “Moody’s” shall mean Moody’s Investors Service, Inc. or any
successor thereto.

           “Multicurrency Commitment” shall mean, as to any Multicurrency Lender at
any time, its obligation to make Multicurrency Revolving Loans to the European
Borrowers and the U.S. Borrowers in an aggregate Dollar Equivalent amount not
to exceed at any time outstanding the amount set forth opposite such
Multicurrency Lender’s name in Part C of Schedule 2.01 under the heading
“Multicurrency Commitment”. The initial aggregate amount of the Multicurrency
Commitments is $250,000,000.

           “Multicurrency Lender” shall mean any Lender that has a Multicurrency
Commitment or an outstanding Multicurrency Revolving Loan.

           “Multicurrency Revolving Credit Exposure” shall mean, as at any date of
determination with respect to any Multicurrency Lender, an amount equal to the
Dollar Equivalent of the Multicurrency Revolving Loans of such Lender on such
date.

           “Multicurrency Revolving Loans” shall have the meaning given such term in
Section 2.01(d).

           “Net Cash Proceeds” shall mean (a) in the case of a Permitted Receivables
Securitization, the gross cash proceeds obtained from third-party financing
sources net of attorneys’ fees, investment banking fees, accountants’ fees,
underwriting discounts and commissions and other customary fees and expenses
actually incurred in connection therewith and (b) in the case of a Permitted
Securities Issuance, the gross cash proceeds received from such issuance or
incurrence, net of attorneys’ fees, investment banking fees, accountants’ fees,
underwriting discounts and commissions and other customary fees and expenses
actually incurred in connection therewith.

           “New Term Loans” shall have the meaning assigned to such term in
Section 2.01(a).

           “Notice of Competitive Bid Request” shall mean a notification made
pursuant to Article III in the form of Exhibit A-2.

18

 

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

           “Permitted Debt” shall mean (i) Debt of any Subsidiary to any Credit
Party, (ii) Guarantees by any Subsidiary of Debt of any Credit Party (other
than the Company) and Guarantees by the Company of any Debt of any Subsidiary,
(iii) any Debt incurred pursuant to Sale and Leaseback Transactions permitted
under Section 10.03, (iv) Debt of any Subsidiary as an account party in respect
of trade letters of credit, to the extent that such letters of credit are not
drawn upon, (v) Debt assumed in connection with any Investment permitted under
Section 10.08, (vi) Debt secured by any Lien permitted pursuant to Section
10.02 (b) or (q), (vii) Debt consisting of guarantees of loans made to
officers, directors or employees of any Subsidiary, (viii) unsecured trade
accounts payable and other unsecured current Debt incurred in the ordinary
course of business and not more than 120 days past due (but excluding any Debt
for borrowed money), (ix) any Permitted Receivables Securitization, (x) any
Permitted Securities Issuance, (xi) Debt with respect to surety, appeal and
performance bonds obtained by any Subsidiary in the ordinary course of
business, (xii) Debt incurred under the 364-Day Credit Agreement; and (xiii)
any replacement, renewal, refinancing or extension of any Debt referenced above
that does not exceed the aggregate principal amount (plus associated fees and
expenses) of the Debt being replaced, renewed, refinanced or extended
(except that accrued and unpaid interest not delinquent in accordance with its
terms may be part of any refinancing pursuant to this clause) and that
otherwise complies with this Agreement.

           “Permitted Receivables Securitization” shall mean the incurrence of Debt
in respect of any receivables securitization of the Company or any Subsidiary,
provided that the aggregate principal amount of all Permitted Receivables
Securitizations outstanding at any time shall not exceed $200,000,000.

           “Permitted Securities Issuance” shall mean the issuance or incurrence by
the Company of any Debt for borrowed money (which may be guaranteed by one or
more Subsidiary Guarantors) in respect of debt securities issued in a public
offering or a private placement, provided that the aggregate principal amount
of all Permitted Securities Issuances outstanding at any time shall not exceed
$500,000,000, and provided further, that any debt securities (and related
guarantees, if any) issued or incurred pursuant to any Permitted Securities
Issuance shall be subordinated to, or pari passu with, the Loans or Guarantees
thereof.

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

           “Plan” shall mean any employee pension benefit plan (other than a
Multiemployer Plan) as defined in Section 4001(a)(3) of ERISA, subject to the
provisions of Title IV of ERISA or Section 412 of the Code that is maintained
by the Company or any ERISA Affiliate for current or former employees, or any
beneficiary thereof, of the Company or any ERISA Affiliate.

           “Pricing Grid” shall mean the Facility Fee and Applicable Margin Pricing
Grid set forth below.

19

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	S&P/Moody’s Rating	 	 	 	 	 	Applicable	 	 
	Equivalent of the	 	 	 	 	 	Margin for	 	Applicable
	Company’s senior	 	 	 	 	 	Eurocurrency	 	Margin for ABR
	unsecured non-credit	 	Facility Fee	 	Revolving Loans	 	Revolving Loans
	enhanced long-term debt
	 	(in Basis Points)
	 	(in Basis Points)
	 	(in Basis Points)

	Higher than BBB+/Baa1
	 	 	10.0	 	 	 	27.5	 	 	 	0	 
	BBB+/Baa1
or BBB/Baa1 or BBB+/Baa2
	 	 	12.5	 	 	 	37.5	 	 	 	0	 
	BBB/Baa2 or
BBB-/Baa2 or
BBB/Baa3
	 	 	15.0	 	 	 	47.5	 	 	 	0	 
	BBB-/Baa3
	 	 	17.5	 	 	 	82.5	 	 	 	0	 
	BBB-/Ba1 or
BB+/Baa3
	 	 	25.0	 	 	 	125.0	 	 	 	25.0	 
	BB+/Ba1 or
lower or
unrated
	 	 	25.0	 	 	 	150.0	 	 	 	50.0	 

	 	 	 	 	 	 	 	 	 
	S&P/Moody's	 	 	 	 
	Rating Equivalent	 	 	 	 
	of the Company's	 	Applicable Margin	 	Applicable
	senior unsecured	 	for Eurocurrency	 	Margin for ABR
	non-credit	 	Term Loans	 	Term Loans
	enhanced long-term debt
	 	(in Basis Points)
	 	(in Basis Points)

	Higher than BBB/Baa2
	 	 	75.0	 	 	 	0	 
	BBB/Baa2 or
BBB-/Baa2 or
BBB/Baa3
	 	 	87.5	 	 	 	0	 
	BBB-/Baa3
	 	 	112.5	 	 	 	12.5	 
	BBB-/Ba1 or
BB+/Baa3
	 	 	150.0	 	 	 	50.0	 
	BB+/Ba1 or
lower or unrated
	 	 	200.0	 	 	 	100.0	 

           If the S&P and Moody’s Ratings are one level apart, the higher Rating will
determine the Facility Fee and Applicable Margin; if the S&P and Moody’s
Ratings are more than one level apart, the Rating one level above the lower
Rating will be determinative. In the event that the Company’s senior unsecured
long-term debt is rated by only one of S&P and Moody’s, then that single Rating
shall be determinative. The Company hereby agrees that at all

20

 

times it shall maintain a Rating from either S&P or Moody’s. Each change in a
Rating by a Rating Agency shall be effective on the date such change is
announced by such Rating Agency.

           The Applicable Margin for the Loans and Letters of Credit shall be
increased by 25.0 Basis Points for each day that (i) the sum of (a) the
Revolving Credit Exposures, (b) the Competitive Loan Exposures and (c) the
aggregate principal amount of the loans outstanding under the 364-Day Credit
Agreement exceed 50% of the sum of (x) the total Revolving Commitments and (y)
the total revolving commitments (or, if the Term Loan Conversion Option has
been exercised, the aggregate outstanding principal amount of the loans
outstanding) under the 364-Day Credit Agreement, and (ii) the
Company has an Investment Grade Standing.

           “Rating Agencies” shall mean Moody’s and S&P.

           “Ratings” shall mean the ratings from time to time established by the
Rating Agencies for senior, unsecured, non-credit-enhanced long-term debt of
the Company.

           “Reference Lenders” shall mean CSFB, JPMCB and Bank of America.

           “Register” shall have the meaning set forth in Section 13.04(d).

           “Reorganization” shall mean with respect to any Multiemployer Plan, the
condition that such plan is in reorganization within the meaning of Section
4241 of ERISA.

           “Required Lenders” shall mean, at any time, Lenders having Revolving
Credit Exposures, outstanding Term Loans and unused Commitments representing at
least 51% of the sum of the Revolving Credit Exposures, outstanding Term Loans
and unused Commitments at such time; provided that, for purposes of declaring
the Loans to be due and payable pursuant to Article XI, and for all purposes
after the loans become due and payable pursuant to Article XI or the
Commitments shall have expired or terminated, the Competitive Loan Exposures of
the Lenders shall be included in their respective Revolving Credit Exposures in
determining the Required Lenders.

           “Restatement Date” shall mean May 24, 2004.

           “Restatement Required Lenders” shall mean the Required Lenders
(immediately prior to the Restatement Date) and the Term Lenders.

           “Revolving Availability Period” shall mean the period from and including
the Effective Date to (but excluding) the earlier of the Revolving Maturity
Date and the date of termination of the Revolving Commitments in accordance
with the terms hereof.

           “Revolving Commitments” shall mean the collective reference to the U.S.
Revolving Commitments, the Multicurrency Commitments and the Japanese
Commitments. The initial aggregate amount of the Revolving Commitments is
$800,000,000.

           “Revolving Credit Exposure” shall mean, as at any date of determination
with respect to any Lender, an amount in Dollars equal to the sum of (a) the
U.S. Revolving Credit

21

 

Exposure of such Lender, (b) the Multicurrency Revolving Credit Exposure of
such Lender and (c) the Japanese Revolving Credit Exposure of such Lender.

           “Revolving Lender” shall mean a Lender with a Revolving Commitment or
outstanding Revolving Credit Exposure.

           “Revolving Loans” shall mean the collective reference to the U.S.
Revolving Loans, the Multicurrency Revolving Loans and the Japanese Revolving
Loans, each, individually, a “Revolving Loan”.

           “Revolving Maturity Date” shall mean June 12, 2006.

           “Sale and Leaseback Transaction” shall mean any arrangement with any
Person pursuant to which the Company or any Subsidiary leases any property that
has been or is to be sold or transferred by the Company or the Subsidiary to
such Person, other than (i) temporary leases for a term, including renewals at
the option of the lessee, of not more than three years, (ii) leases between the
Company and a Subsidiary or between Subsidiaries, (iii) leases of property
executed by the time of, or within 12 months after the latest of, the
acquisition, the completion of construction or improvement, or the commencement
of commercial operation, of such property and (iv) arrangements pursuant to any
provision of law with an effect similar to that under former Section 168(f)(8)
of the Internal Revenue Code of 1954.

           “S&P” shall mean Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc. or any successor rating agency.

           “SEC” shall mean the Securities and Exchange Commission.

           “Sterling” or “ “ means the lawful money of the United Kingdom.

           “subsidiary” shall mean, with respect to any Person (the “parent”) at any
date, (a) for purposes of Sections 10.03 and 10.06 only, any Person the
majority of the outstanding Voting Stock (or equivalent voting securities of
any Person which is not a corporation) of which is owned, directly or
indirectly, by the parent or one or more subsidiaries of the parent of such
Person and (b) for all other purposes under this Agreement, 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 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.

           “Subsidiary” shall mean a subsidiary of the Company.

           “Subsidiary Guarantor” shall mean each Domestic Wholly Owned Subsidiary
that has executed a counterpart of this Agreement and has become a guarantor of
the Borrower Obligations.

22

 

           “Swingline Lender” shall mean JPMCB in its capacity as lender of
Swingline Loans hereunder.

           “Swingline Loan” shall mean a Loan made pursuant to Article V.

           “Swiss Borrower” shall have the meaning set forth in the
Preamble.

           “Swiss Francs” or “CHF” shall mean the lawful money
of Switzerland.

           “Taxes” shall mean any and all present or future taxes, levies, imposts,
duties, deductions, charges or withholdings imposed by any Governmental
Authority and all liabilities with respect thereto.

           “Term Lender” shall mean each Lender with a Term Loan Commitment or an
outstanding Term Loan.

           “Term Loan Commitment” shall mean, as to any U.S. Lender, its obligation
to make a New Term Loan to the U.S. Borrowers on the Restatement Date,
expressed as an amount representing the maximum principal amount of the New
Term Loans to be made by such Lender hereunder, as such Commitment may be (a)
reduced from time to time pursuant to Section 6.03 and (b) reduced or increased
from time to time pursuant to assignments by or to such Lender pursuant to
Section 13.04. The initial amount of such Lender’s Term Loan Commitment is set
forth opposite such U.S. Lender’s name in Part A of Schedule 2.01 under the
heading “Term Loan Commitment”. The initial aggregate amount of the Term Loan
Commitments is $100,000,000.

           “Term Loan Convergence Date” shall mean a Business Day selected by the
Borrower and notified to the General Administrative Agent, (a) on which all the
outstanding Term Loans shall be ABR Loans or (b) that is the first day of one
or more Interest Periods for all the outstanding Term Loans.

           “Term Loan Conversion Option” shall mean the right of the Borrower to
convert the outstanding loans under the 364-Day Credit Agreement to a term loan
in accordance with the terms of such Agreement.

           “Term Loan Maturity Date” shall mean June 12, 2008.

           “Term Loans” shall mean the Existing Term Loans and the New Term
Loans.

           “Transactions” shall mean the execution and delivery by the Credit Parties
of this Agreement (or, in the case of the Borrowing Subsidiaries, the Borrowing
Subsidiary Agreements) and the 364-Day Credit Agreement, the performance by the
Credit Parties of their obligations hereunder and thereunder, the borrowings
made or to be made hereunder and thereunder and the use of the proceeds
thereof.

           “Type” when used in respect of any Loan or Borrowing, shall refer to the
Rate by reference to which interest on such Loan or on the Loans comprising
such Borrowing is

23

 

determined. For purposes hereof, “Rate” shall include the Eurocurrency Rate,
the Alternate Base Rate and the Fixed Rate.

           “U.S. Borrowers” shall have the meaning set forth in the preamble and,
when used to describe the Borrowers who are permitted to borrow under any of
the Revolving Commitments, also shall mean and include any Borrowing Subsidiary
that is a Domestic Wholly Owned Subsidiary.

           “U.S. Commitments” shall mean the U.S. Revolving Commitments and the Term
Loan Commitments.

           “U.S. Lender” shall mean a Lender having a Term Loan Commitment or any
outstanding Term Loan, or a U.S. Revolving Commitment or outstanding U.S.
Revolving Credit Exposure.

           “U.S. Loans” shall mean U.S. Revolving Loans and Term Loans.

           “U.S. Revolving Commitment” shall mean, as to any U.S. Revolving Lender at
any time, its obligation to make U.S. Revolving Loans to, and/or participate in
Swingline Loans made to and Letters of Credit issued for the account of, any
U.S. Borrower and the Borrowing Subsidiaries in an aggregate amount not to
exceed at any time outstanding the Dollar amount set forth opposite such U.S.
Lender’s name in Part A of Schedule 2.01 under the heading “U.S. Revolving
Commitment”, as such amount may be reduced from time to time pursuant to
Section 6.03 and the other applicable provisions hereof. The initial aggregate
amount of the U.S. Revolving Commitments is $450,000,000.

           “U.S. Revolving Commitment Percentage” shall mean, as to any U.S.
Revolving Lender at any time, the percentage which such U.S. Revolving Lender’s
U.S. Revolving Commitment then constitutes of the aggregate U.S. Revolving
Commitments of all U.S. Revolving Lenders.

           “U.S. Revolving Credit Exposure” shall mean, as at any date of
determination with respect to any U.S. Revolving Lender, an amount in Dollars
equal to the sum of (a) the aggregate unpaid principal amount of such U.S.
Revolving Lender’s U.S. Revolving Loans on such date, (b) such U.S. Revolving
Lender’s U.S. Revolving Commitment Percentage of the aggregate unpaid principal
amount of all Swingline Loans and (c) such U.S. Revolving Lender’s LC Exposure.

           “U.S. Revolving Lender” shall mean a U.S. Lender with a U.S. Revolving
Commitment or, if the U.S. Revolving Commitments have terminated or expired, a
U.S. Lender with U.S. Revolving Credit Exposure.

           “U.S. Revolving Loan” shall have the meaning set forth in Section
2.01(b).

           “Value” shall mean, with respect to a Sale and Leaseback Transaction, an
amount equal to the present value of the lease payments with respect to the
term of the lease (reduced by the amount of rental obligations of any sublessee
of all or part of the
same property) remaining on the date as of which the amount is being
determined, without regard to any renewal or

24

 

extension options contained in the lease, discounted at an interest rate
determined by the Company at the time of the consummation of such Sale and
Leaseback Transaction as long as such interest rate is customary for leases of
such type.

           “Voting Stock” shall mean, as applied to the stock of any corporation,
stock of any class or classes (however designated) having by the terms thereof
ordinary voting power to elect a majority of the members of the board of
directors (or other governing body) of such corporation other than stock having
such power only by reason of the happening of a contingency.

           “Wholly Owned Subsidiary” of any Person, a subsidiary of such Person of
which securities (except for directors’ qualifying shares) or other ownership
interests representing 100% of the equity are, at the time any determination is
being made, owned by such Person or one or more wholly owned subsidiaries of
such Person or by such Person and one or more wholly owned subsidiaries of such
Person.

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

           SECTION 1.03. Terms Generally. The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined. Whenever
the context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”. The word
“will” shall be construed to have the same meaning and effect as the word
“shall”. Unless the context requires otherwise (a) any definition of or
reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, 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 and (e) 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,
however, that if the Company notifies the General Administrative Agent that the
Company wishes to amend any covenant in Article X or

25

 

any related definition or other financial term used herein to eliminate the
effect of any change in GAAP occurring after the Restatement Date on the
operation of such covenant (or if the General Administrative Agent notifies the
Company that the Required Lenders wish to amend Article X or any related
definition or other financial term used herein for such purpose), then the
Company’s compliance with such covenant shall be determined on the basis of
GAAP in effect immediately before the relevant change in GAAP became effective,
until either such notice is withdrawn or such covenant is amended in a manner
satisfactory to the Company and the Required Lenders.

ARTICLE II

Amount and Terms of the Commitments

           SECTION 2.01. Commitments. (a) Subject to the terms and conditions set
forth herein, each U.S. Lender agrees to make a term loan (each, a “New Term
Loan”) to the U.S. Borrowers on the Restatement Date in a principal amount in
Dollars not exceeding its Term Loan Commitment.

           (b) Subject to the terms and conditions set forth herein, each U.S.
Revolving Lender agrees to make revolving loans (“U.S. Revolving Loans”) to the
U.S. Borrowers from time to time during the Revolving Availability Period in
Dollars in an aggregate principal amount that will not result in (i) such
Lender’s U.S. Revolving Credit Exposure exceeding such Lender’s U.S. Revolving
Commitment, (ii) the sum of the total U.S. Revolving Credit Exposures exceeding
the total U.S. Revolving Commitments or (iii) the sum of the total Revolving
Credit Exposures plus the total Competitive Loan Exposures exceeding the total
Revolving Commitments. Within the foregoing limits and subject to the terms
and conditions set forth herein, the U.S. Borrowers may borrow, prepay and
reborrow U.S. Revolving Loans.

           (c) Subject to the terms and conditions set forth herein, each Japanese
Lender agrees to make revolving loans (“Japanese Revolving Loans”) from time to
time during the Revolving Availability Period to the Japanese Borrower and the
U.S. Borrowers in Japanese Yen or Dollars in an aggregate principal amount that
will not result in (i) such Lender’s Japanese Revolving Credit Exposure
exceeding such Lender’s
Japanese Commitment, (ii) the sum of the total Japanese Revolving Credit
Exposures exceeding the total Japanese Commitments or (iii) the sum of the
total Revolving Credit Exposure plus the total Competitive Loan Exposures
exceeding the total Revolving Commitments. Within the foregoing limits and
subject to the terms and conditions set forth herein, any Japanese Borrower and
the U.S. Borrowers may borrow, prepay and reborrow the Japanese Revolving
Loans.

           (d) Subject to the terms and conditions set forth herein, each
Multicurrency Lender agrees to make revolving loans (“Multicurrency Revolving
Loans”) from time to time during the Revolving Availability Period to the
European Borrowers and the U.S. Borrowers in a Committed Currency or Dollars in
an aggregate principal amount that will not result in (i) such Lender’s
Multicurrency Revolving Credit Exposure exceeding such Lender’s Multicurrency
Commitment, (ii) the sum of the total Multicurrency Revolving Credit Exposures
exceeding the total Multicurrency Commitments or (iii) the sum of the total
Revolving Credit Exposure plus the total Competitive Loan Exposures exceeding
the total Revolving Commitments. Within the

26

 

foregoing limits and subject to the terms and conditions set forth herein, the
European Borrowers and the U.S. Borrowers may borrow, prepay and reborrow the
Multicurrency Revolving Loans.

           (e) The Credit Parties and the Lenders acknowledge the making of Revolving
Loans and the Existing Term Loans prior to the Restatement Date in accordance
with the terms of the Existing Credit Agreement and agree that such Revolving
Loans and Existing Term Loans outstanding on the Restatement Date shall
continue to be outstanding pursuant to the terms and conditions of this
Agreement and the other Loan Documents. From and after the Term Loan
Convergence Date, the New Term Loans and the Existing Term Loans shall be
treated as Term Loans of the same Class for all purposes of this Agreement and
the other Loan Documents. To facilitate the Term Loan Convergence Date,
notwithstanding anything to the contrary contained herein, the New Term Loans
will be made on the Restatement Date in the form of a single Eurocurrency
Borrowing with an Interest Period ending on December 2, 2004, and with a
Eurocurrency Rate for such Interest Period equal to 1.66% per annum. The
Company agrees to cause the Term Loan Convergence Date to occur on or prior to
December 10, 2004.

           SECTION 2.02. Loans and Borrowings. (a) Each U.S. Loan shall be made as
part of a Borrowing consisting of U.S. Loans of the same Class and Type made by
the U.S. Lenders ratably in accordance with their respective U.S. Commitments
of the applicable Class. Each Competitive Loan shall be made in accordance with
the procedures set forth in Section 3.01.

           (b) Each Japanese Revolving Loan shall be made as part of a Borrowing
consisting of Japanese Revolving Loans made by the Japanese Lenders to the
Japanese Borrower or the U.S. Borrowers, as the case may be, ratably in
accordance with their respective Japanese Commitments.

           (c) Each Multicurrency Revolving Loan shall be made as part of a Borrowing
consisting of Multicurrency Revolving Loans made by the Multicurrency Lenders
to the English Borrower, the Swiss Borrower or the U.S. Borrowers, as the case
may be, ratably in accordance with their respective Multicurrency Commitments.

           (d) 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 and Competitive Bids of the Lenders are several and no Lender
shall be responsible for any other Lender’s failure to make such Loans as
required.

           (e) Subject to Section 6.09, (i) each Term Borrowing and each Revolving
Borrowing denominated in Dollars shall be comprised entirely of ABR Loans or
Eurocurrency Loans as the Company (on its own behalf or on behalf of any other
applicable Borrower) may request in accordance herewith, (ii) each Competitive
Borrowing shall be comprised entirely of Eurocurrency Loans or Fixed Rate Loans
as the Company (on its own behalf or on behalf of any other Borrower) may
request in accordance herewith and (iii) each Revolving Borrowing denominated
in an Alternate Currency shall be comprised entirely of Eurocurrency Loans.
Each Lender at its option may make any Eurocurrency Loan by causing any
domestic or foreign branch or Affiliate of such Lender to make such Loan;
provided that any exercise of such option

27

 

shall not affect the obligation of any Borrower to repay such Loan in
accordance with the terms of this Agreement.

           (f) At the commencement of each Interest Period for any Eurocurrency
Borrowing, such Borrowing shall be in an aggregate amount that is (i) in the
case of a Eurocurrency Borrowing denominated in Dollars, an integral multiple
of $1,000,000 and not less than $5,000,000 and (ii) in the case of a
Eurocurrency Borrowing denominated in an Alternate Currency a minimum principal
amount the Dollar Equivalent of which is $2,000,000. At the time that each ABR
Borrowing is made, such Borrowing shall be in an aggregate amount that is an
integral multiple of $1,000,000 and not less than $1,000,000; provided that an
ABR Borrowing may be in an aggregate amount that is equal to the entire unused
balance of the total Commitments of a particular Class. Each Competitive
Borrowing shall be in an aggregate amount that is an integral multiple of
$1,000,000 and not less than $5,000,000. Borrowings of more than one
Commitment, Type and Class may be outstanding at the same time; provided that
there shall not at any time be more than a total of (i) 30 Eurocurrency
Revolving Borrowings outstanding or (ii) 7 Eurocurrency Term Borrowings
outstanding.

           (g) Notwithstanding any other provision of this Agreement, the Company (on
its own behalf or on behalf of any other Borrower) 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 Revolving Maturity
Date or the Term Loan Maturity Date, as the case may be.

           SECTION 2.03. Requests for Borrowings. To request a Revolving Borrowing or
a Term Borrowing, the applicable Borrower or the Company (on its own
behalf or on behalf of any other Borrower) shall notify the Applicable
Administrative Agent and the General Administrative Agent of such request by
telephone (a) in the case of a Eurocurrency Borrowing, not later than 1:30
p.m., Local Time, three Business Days before the date of the proposed Borrowing
or (b) in the case of an ABR Borrowing, not later than 12:00 noon, New York
City time, on the date of the proposed Borrowing. Each such telephonic
Borrowing Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the applicable Administrative Agent and the General
Administrative Agent of a written Borrowing Request in the form of Exhibit A-5.
Each such telephonic and written Borrowing Request shall specify the following
information in compliance with Section 2.02:

     (i) whether the requested Borrowing is to be comprised of Revolving
Loans or Term Loans;

     (ii) the aggregate amount of the requested Borrowing and the
Currency of such Borrowing;

     (iii) if such Borrowing is to be an Alternate Currency Borrowing,
whether such Borrowing is to be a Japanese Revolving Borrowing or a
Multicurrency Revolving Borrowing (and stating the Currency in which such
Borrowing is to be made);

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

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     (v) whether such Borrowing is to be an ABR Borrowing or a
Eurocurrency Borrowing (which, in the case of an Alternate Currency
Borrowing shall be a Eurocurrency Borrowing);

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

     (vii) the location and number of the account of the applicable
Borrower or any Borrowing Subsidiary to which funds are to be disbursed,
which shall comply with the requirements of Section 6.01; and

     (viii) the applicable Borrower.

If no election as to the Type of Borrowing is specified, then the requested
Borrowing shall be, in the case of a Borrowing in Dollars, an ABR Borrowing. If
no Interest Period is specified with respect to any requested Eurocurrency
Borrowing, then the applicable Borrower or the Company, as the case may be,
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 Administrative Agent shall advise each applicable
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. Borrowing Subsidiaries. The Company may designate
any Wholly Owned Subsidiary of the Company as a Borrowing Subsidiary under
any of the Commitments; provided that the Administrative Agent shall be
reasonably satisfied that the applicable Lenders may make loans and other
extensions of credit to such Person in the applicable Currency or Currencies in
such Person’s jurisdiction in compliance with applicable laws and regulations
and without being subject to any unreimbursed or unindemnified Tax or other
expense. Upon the receipt by the General Administrative Agent of a Borrowing
Subsidiary Agreement executed by such a Wholly Owned Subsidiary and the
Company, such Wholly Owned Subsidiary shall be a Borrowing Subsidiary and a
party to this Agreement. A Subsidiary shall cease to be a Borrowing Subsidiary
hereunder at such time as no Loans, fees or any other amounts due in connection
therewith pursuant to the terms hereof shall be outstanding to such Subsidiary
and such Subsidiary and the Company shall have executed and delivered to the
General Administrative Agent a Borrowing Subsidiary Termination; provided that,
notwithstanding anything herein to the contrary, no Borrowing Subsidiary shall
cease to be a Borrowing Subsidiary solely because it no longer is a Wholly
Owned Subsidiary of the Company so long as such Borrowing Subsidiary and the
Company shall not have executed and delivered to the General Administrative
Agent a Borrowing Subsidiary Termination and the Guarantors’ guarantee of the
Borrower Obligations of such Borrowing Subsidiary pursuant to Section 13.16 has
not been released.

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ARTICLE III

Competitive Bid Loans

           SECTION 3.01. Competitive Bid Procedure. (a) Subject to the terms and
conditions set forth herein, from time to time during the Revolving
Availability Period the Company (on its own behalf or on behalf of any other
Borrower) may request Competitive Bids and the Company (on its own behalf or on
behalf of any other Borrower) may (but shall not have any obligation to) accept
Competitive Bids and borrow Competitive Loans; provided that no Competitive
Loan may be requested that would result in the sum of the total Revolving
Credit Exposures plus the total Competitive Loan Exposures exceeding the total
Revolving Commitments. To request Competitive Bids, the Company (on its own
behalf or on behalf of any other Borrower) shall hand deliver or telecopy to
the Advance Agent a duly completed Competitive Bid Request in the form of
Exhibit A-1 hereto, to be received by the Advance Agent, in the case of a
Eurocurrency Borrowing, not later than 10:00 a.m., New York City time, four
Business Days before the date of the proposed Borrowing and, in the case of a
Fixed Rate Borrowing, not later than 10:00 a.m., New York City time, two
Business Days before the date of the proposed Borrowing. A Competitive Bid
Request that does not conform substantially to Exhibit A-1 may be rejected in
the Advance Agent’s sole discretion, and the Advance Agent shall promptly
notify the Company of such rejection by telecopy. Each Competitive Bid Request
shall specify the following information in compliance with Section 2.02:

     (i) the aggregate amount of the requested Borrowing;

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

     (iii) whether such Borrowing is to be a Eurocurrency Borrowing or a
Fixed Rate Borrowing;

     (iv) the Interest Period to be applicable to such Borrowing, which
shall be a period contemplated by the definition of the term “Interest
Period”;

     (v) the location and number of the account of the Borrower to which
funds are to be disbursed, which shall comply with the requirements of
Section 6.01; and

     (vi) the applicable Borrower.

Promptly following receipt of a Competitive Bid Request in accordance with this
Section, the Advance Agent shall notify the Revolving Lenders of the details
thereof by telecopy, inviting the Revolving Lenders to submit
Competitive Bids.

           (b) Each Revolving Lender may (but shall not have any obligation to) make
one or more Competitive Bids to such Borrower in response to a Competitive Bid
Request. Each Competitive Bid by a Revolving Lender must be received by the
Advance Agent by telecopy, in the form of Exhibit A-3 hereto, in the case of a
Eurocurrency Competitive Borrowing, not later than 9:30 a.m., New York City
time, three Business Days before the proposed date of such Competitive
Borrowing, and in the case of a Fixed Rate Borrowing, not later than 11:30
a.m., New York City time, one Business Day before the proposed date of such
Competitive

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Borrowing. Competitive Bids that do not conform substantially to the format of
Exhibit A-3 may be rejected by the Advance Agent, and the Advance Agent shall
notify the applicable Revolving Lender as promptly as practicable. Each
Competitive Bid shall specify (i) the principal amount of the Competitive Loan
or Loans that the Revolving Lender is willing to make (which shall be a minimum
of $5,000,000 and an integral multiple of $1,000,000, and which may equal the
entire principal amount of the Competitive Borrowing Request by such Borrower),
(ii) the Competitive Bid Rate or Rates at which the Revolving Lender is
prepared to make such Loan or Loans (expressed as a percentage rate per annum
in the form of a decimal to no more than four decimal places) and (iii) the
Interest Period applicable to each such Loan and the last day thereof.

           (c) The Advance Agent shall promptly notify such Borrower by telecopy of
the Competitive Bid Rate and the principal amount specified in each Competitive
Bid and the identity of the Lender that shall have made such Competitive Bid.

           (d) Subject only to the provisions of this paragraph, such Borrower may
accept or reject any Competitive Bid. Such Borrower shall notify the Advance
Agent by telephone, confirmed by telecopy in the form of a Competitive Bid
Accept/Reject Letter, whether and to what extent it has decided to accept or
reject each Competitive Bid, in the case of a Eurocurrency Competitive
Borrowing, not later than 2:00 p.m., New York City time, three Business Days
before the date of the proposed
Competitive Borrowing, and in the case of a Fixed Rate Borrowing, not
later than 2:00 p.m., New York City time, on the proposed date of the
Competitive Borrowing; provided that (i) the failure of such Borrower to give
such notice shall be deemed to be a rejection of each Competitive Bid, (ii)
such Borrower shall not accept a Competitive Bid made at a particular
Competitive Bid Rate if the Company rejects a Competitive Bid made at a lower
Competitive Bid Rate, (iii) the aggregate amount of the Competitive Bids
accepted by such Borrower shall not exceed the aggregate amount of the
requested Competitive Borrowing specified in the related Competitive Bid
Request, (iv) to the extent necessary to comply with clause (iii) above, such
Borrower may accept Competitive Bids at the same Competitive Bid Rate in part,
which acceptance, in the case of multiple Competitive Bids at such Competitive
Bid Rate, shall be made pro rata in accordance with the amount of each such
Competitive Bid and (v) except pursuant to clause (iv) above, no Competitive
Bid shall be accepted for a Competitive Loan unless such Competitive Loan is in
a minimum principal amount of $5,000,000 and an integral multiple of
$1,000,000; provided further that if a Competitive Loan must be in an amount
less than $5,000,000 because of the provisions of clause (iv) above, such
Competitive Loan may be for a minimum of $5,000,000 or any integral multiple of
$1,000,000 thereof, and in calculating the pro rata allocation of acceptances
of portions of multiple Competitive Bids at a particular Competitive Bid Rate
pursuant to clause (iv) the amounts shall be rounded to integral multiples of
$1,000,000 in a manner which shall be in the discretion of such Borrower. A
notice given by such Borrower pursuant to this paragraph (d) shall be
irrevocable.

           (e) The Advance Agent shall promptly notify each bidding Lender by
telecopy whether or not its Competitive Bid has been accepted (and, if so, the
amount and Competitive Bid Rate so accepted), and each successful bidder will
thereupon become bound, subject to the terms and conditions hereof, to make the
Competitive Loan in respect of which its Competitive Bid has been accepted.

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           (f) If the Advance Agent shall elect to submit a Competitive Bid in its
capacity as a Revolving Lender, it shall submit such Competitive Bid directly
to the Company (on its own behalf or on behalf of any other Borrower) at least
one quarter of an hour earlier than the time by which the other Revolving
Lenders are required to submit their Competitive Bids to the Advance Agent
pursuant to paragraph (b) of this Section 3.01.

           (g) All notices required by this Section 3.01 shall be given in accordance
with Section 13.01.

ARTICLE IV

Letters of Credit

           SECTION 4.01. Letters of Credit. (a) General. Subject to the terms and
conditions set forth herein, each U.S. Borrower and the Company (on behalf of
any Borrowing Subsidiary) may request the issuance under the U.S. Revolving
Commitments
of Letters of Credit for its own account (including for the account of any
Borrowing Subsidiary), in a form reasonably acceptable to the General
Administrative Agent and the Issuing Lender, at any time and from time to time
during the Revolving 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 a
U.S. Borrower or the Company (on behalf of any Borrowing Subsidiary) to, or
entered into by a U.S. Borrower or the Company (on behalf of any Borrowing
Subsidiary) with, the Issuing Lender relating to any Letter of Credit, the
terms and conditions of this Agreement shall control. At the request of a U.S.
Borrower or the Company (on behalf of any Borrowing Subsidiary), any Letter of
Credit may be issued for the joint and several account of such Borrower and
another Borrower.

           (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), a U.S. Borrower or the Company
(on behalf of any Borrowing Subsidiary) shall hand deliver or telecopy (or
transmit by electronic communication, if arrangements for doing so have been
approved by the Issuing Lender) to the Issuing Lender and the General
Administrative Agent (reasonably in advance of the requested date of issuance,
amendment, renewal or extension) a notice requesting the issuance of a Letter
of Credit, or identifying the Letter of Credit to be amended, renewed or
extended, the date of issuance, amendment, renewal or extension, the date on
which such Letter of Credit is to expire (which shall comply with paragraph (c)
of this Section 4.01), the 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 Lender, such U.S. Borrower or the Company (on behalf
of any Borrowing Subsidiary) also shall submit a letter of credit application
on the Issuing Lender’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 Borrowers 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 $50,000,000, (ii) the sum of the total U.S.
Revolving Credit Exposures shall not exceed the total U.S. Revolving
Commitments and

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(iii) the sum of the total Revolving Credit Exposures plus the total
Competitive Loan Exposures shall not exceed the total Revolving Commitments.

           (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 Revolving Maturity Date.

           (d) Participations. By the issuance of a Letter of Credit (or an amendment
to a Letter of Credit increasing the amount thereof) and without any further
action on the part of the Issuing Lender or the U.S. Revolving Lenders,
the Issuing Lender hereby grants to each U.S. Revolving Lender, and each U.S.
Revolving Lender hereby acquires from the Issuing Lender, a participation in
such Letter of Credit equal to such U.S. Revolving Lender’s U.S. Revolving
Commitment Percentage of the aggregate amount available to be drawn under such
Letter of Credit. In consideration and in furtherance of the foregoing, each
U.S. Revolving Lender hereby absolutely and unconditionally agrees to pay to
the General Administrative Agent, for the account of the Issuing Lender, such
U.S. Revolving Lender’s U.S. Revolving Commitment Percentage of each LC
Disbursement made by the Issuing Lender and not reimbursed on or before the
date due as provided in paragraph (e) of this Section 4.01, or of any
reimbursement payment required to be refunded to the Borrowers for any reason.
Each U.S. Revolving 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 U.S. Revolving Commitments, and that each such payment shall
be made without any offset, abatement, withholding or reduction whatsoever.

           (e) Reimbursement. If the Issuing Lender shall make any LC Disbursement in
respect of a Letter of Credit, the applicable Borrower shall reimburse such LC
Disbursement by paying to the General Administrative Agent an amount equal to
such LC Disbursement not later than 2:00 p.m., New York City time, on the date
that such LC Disbursement is made, if such Borrower 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 such Borrower prior to such time on
such date, then not later than 2:00 p.m., New York City time, on (i) the
Business Day that such Borrower 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 such Borrower receives such
notice, if such notice is not received prior to such time on the day of
receipt; provided that such U.S. Borrower or the Company (on behalf of the
applicable Borrowing Subsidiary) may, subject to the conditions to borrowing
set forth herein, request in accordance with Section 2.03 that such payment be
financed with a U.S. Revolving Loan or Swingline Loan in an equivalent amount
and, to the extent so financed, such Borrower’s obligation to make such payment
shall be discharged and replaced by the resulting U.S. Revolving Loan or
Swingline Loan. If such Borrower fails to make such payment when due, the
General Administrative Agent shall notify each U.S. Revolving Lender of the
applicable LC Disbursement, the payment then due from such Borrower in respect
thereof and such U.S. Revolving Lender’s U.S. Revolving Commitment Percentage
thereof. Promptly following receipt of such notice, each U.S. Revolving Lender
shall pay to the General Administrative

33

 

Agent its U.S. Revolving Commitment Percentage of the payment then due from
such Borrower, in the same manner as provided in Section 6.01 with respect to
U.S. Revolving Loans made by such U.S. Revolving Lender (and Section 6.01 shall
apply, mutatis mutandis, to the payment obligations of the U.S. Revolving
Lenders), and the General Administrative Agent shall promptly pay to the
Issuing Lender the amounts so received
by it from the U.S. Revolving Lenders. Promptly following receipt by the
General Administrative Agent of any payment from such Borrower pursuant to this
paragraph, the General Administrative Agent shall distribute such payment to
the Issuing Lender or, to the extent that U.S. Revolving Lenders have made
payments pursuant to this paragraph to reimburse the Issuing Lender, then to
such U.S. Revolving Lenders and the Issuing Lender as their interests may
appear. Any payment made by a U.S. Revolving Lender pursuant to this paragraph
to reimburse the Issuing Lender for any LC Disbursement (other than the funding
of U.S. Revolving Loans as contemplated above) shall not constitute a Loan and
shall not relieve such Borrower of its obligation to reimburse such LC
Disbursement.

           (f) Obligations Absolute. Each applicable Borrower’s obligation to
reimburse LC Disbursements as provided in paragraph (e) of this Section 4.01
shall be absolute, unconditional and irrevocable, and shall be performed
strictly in accordance with the terms of this Agreement under any and all
circumstances whatsoever and irrespective of:

     (i) any lack of validity or enforceability of any Letter of Credit
or this Agreement, or any term or provision therein;

     (ii) any amendment or waiver of or any consent to departure from all
or any of the provisions of any Letter of Credit or this Agreement;

     (iii) the existence of any claim, setoff, defense or other right
that any Borrower, any other party guaranteeing, or otherwise obligated
with, any Borrower, any Subsidiary or other Affiliate thereof or any
other Person may at any time have against the beneficiary under any
Letter of Credit, the Issuing Lender, the General Administrative Agent or
any Lender or any other Person, whether in connection with this Agreement
or any other related or unrelated agreement or transaction;

     (iv) 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;

     (v) payment by the Issuing Lender 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; and

     (vi) any other act or omission to act or delay of any kind of the
Issuing Lender, the Lenders, the General Administrative Agent or any
other Person or any other event or circumstance whatsoever, whether or
not similar to any of the foregoing, that might, but for the provisions
of this Section 4.01, constitute a legal or equitable discharge of such
Borrower’s obligations hereunder.

Neither the General Administrative Agent, the Lenders nor the Issuing Lender
nor any of their Affiliates, directors, officers, employees and agents, shall
have any liability or responsibility by

34

 

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, including any
of the circumstances specified in clauses (i) through (vi) above, as well as
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 Lender; provided that the foregoing
shall not be construed to excuse the Issuing Lender from liability to such
Borrower to the extent of any direct damages (as opposed to consequential
damages, claims in respect of which are hereby waived by the Borrowers to the
extent permitted by applicable law) suffered by such Borrower that are caused
by the Issuing Lender’s failure to exercise the agreed standard of care (as set
forth below) in determining whether drafts and other documents presented under
a Letter of Credit comply with the terms thereof. The parties hereto expressly
agree that the Issuing Lender shall have exercised the agreed standard of care
in the absence of gross negligence or wilful misconduct on the part of the
Issuing Lender. Without limiting the generality of the foregoing, it is
understood that the Issuing Lender may accept documents that appear on their
face to be in substantial compliance with the terms of a Letter of Credit,
without responsibility for further investigation, regardless of any notice or
information to the contrary, and may make payment upon presentation of
documents that appear on their face to be in substantial compliance with the
terms of such Letter of Credit; provided that the Issuing Lender shall have the
right, in its sole discretion, to decline to accept such documents and to make
such payment if such documents are not in strict compliance with the terms of
such Letter of Credit.

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

           (h) Interim Interest. If the Issuing Lender shall make any LC
Disbursement, unless the Borrowers shall reimburse (including with the proceeds
of Loans as provided in Section 4.01(e)) such LC Disbursement in full on the
date such LC Disbursement is made, the unpaid amount thereof shall bear
interest, for each day from and including the date such LC Disbursement is made
to but excluding the date that the Borrowers reimburse such LC Disbursement at
the rate per annum specified in Section 6.08(a); provided that, if the
Borrowers fail to reimburse (including with the proceeds of Loans as provided
in Section 4.01(e)) such LC, Disbursement when due pursuant to paragraph (e) of
this Section 4.01, then Section 6.08(d) shall apply. Interest accrued pursuant
to this paragraph shall be for the account of the Issuing Lender, except that
interest accrued on and after the date of payment by any U.S. Revolving Lender
pursuant to paragraph (e) of this Section 4.01 to reimburse the Issuing Lender
shall be for the
account of such U.S. Revolving Lender to the extent of such payment.

           (i) Resignation or Removal of the Issuing Lender. The Issuing Lender may
resign at any time by giving at least 30 days’ prior written notice to the
General Administrative

35

 

Agent and the Company, and may be removed at any time by the Company by notice
to the Issuing Lender and the General Administrative Agent. Upon the
acceptance of any appointment as the Issuing Lender hereunder by a Lender that
shall agree to serve as successor Issuing Lender, such successor shall succeed
to and become vested with all the interests, rights and obligations of the
retiring Issuing Lender and the retiring Issuing Lender shall be discharged
from its obligations to issue additional Letters of Credit hereunder. At the
time such removal or resignation shall become effective, the Company shall pay
all accrued and unpaid fees pursuant to Section 6.07(c)(ii). The acceptance of
any appointment as the Issuing Lender hereunder by a successor Lender shall be
evidenced by an agreement entered into by such successor, in a form
satisfactory to the Company and the General Administrative Agent, and, from and
after the effective date of such agreement, (i) such successor Lender shall
have all the rights and obligations of the previous Issuing Lender under this
Agreement and the other Loan Documents and (ii) references herein and in the
other Loan Documents to the term “Issuing Lender” shall be deemed to refer to
such successor or to any previous Issuing Lender, or to such successor and all
previous Issuing Lenders, as the context shall require. After the resignation
or removal of the Issuing Lender hereunder, the retiring Issuing Lender shall
remain a party hereto and shall continue to have all the rights and obligations
of an Issuing Lender under this Agreement and the other Loan Documents with
respect to Letters of Credit issued by it prior to such resignation or removal,
but shall not be required to issue additional Letters of Credit.

ARTICLE V

Swingline Loans

           SECTION 5.01. Swingline Loans. (a) Subject to the terms and conditions
set forth herein, the Swingline Lender agrees to make Swingline Loans under the
U.S. Revolving Commitments to the U.S. Borrowers or any Borrowing Subsidiary
from time to time during the Revolving 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
$50,000,000, (ii) the sum of the total U.S. Revolving Credit Exposures
exceeding the total U.S. Revolving Commitments or (iii) the sum of the total
Revolving Credit Exposures plus the total Competitive Loan Exposures exceeding
the total Revolving Commitments; 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 U.S. Borrowers or any Borrowing Subsidiary may borrow, prepay
and reborrow Swingline Loans. Swingline Loans shall be in an aggregate amount
that is not less than $100,000. Swingline Loans shall be ABR Loans.

           (b) To request a Swingline Loan, a U.S. Borrower or the Company (on behalf
of any Borrowing Subsidiary) shall notify the General Administrative Agent of
such request by telephone (confirmed by telecopy), not later than 3:00 p.m.,
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 General Administrative Agent
will promptly advise the Swingline Lender of any such notice received from such
U.S. Borrower or the Company (on behalf of any Borrowing Subsidiary). The

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Swingline Lender shall make each Swingline Loan available to such Borrower by
means of a credit to the general deposit account of such Borrower with the
Swingline Lender (or, in the case of a Swingline Loan made to finance the
reimbursement of an LC Disbursement as provided in Section 4.01, by remittance
to the Issuing Lender) by 4:00 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 General
Administrative Agent not later than 10:00 a.m., New York City time, on any
Business Day require the U.S. Revolving 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 U.S.
Revolving Lenders will participate. Promptly upon receipt of such notice, the
General Administrative Agent will give notice thereof to each U.S. Revolving
Lender, specifying in such notice such U.S. Revolving Lender’s U.S. Revolving
Commitment Percentage of such Swingline Loan or Loans. Each U.S. Revolving
Lender hereby absolutely and unconditionally agrees, upon receipt of notice as
provided above, to pay to the General Administrative Agent, for the account of
the Swingline Lender, such U.S. Revolving Lender’s U.S. Revolving Commitment
Percentage of such Swingline Loan or Loans. Each U.S. Revolving 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 Revolving
Commitments, and that each such payment shall be made without any offset,
abatement, withholding or reduction whatsoever. Each U.S. Revolving Lender
shall comply with its obligation under this paragraph by wire transfer of
immediately available funds, in the same manner as provided in Section 6.01
with respect to U.S. Revolving Loans made by such U.S. Revolving Lender (and
Section 6.01 shall apply, mutatis mutandis, to the payment obligations of the
U.S. Revolving Lenders), and the General Administrative Agent shall promptly
pay to the Swingline Lender the amounts so received by it from the U.S.
Revolving Lenders. The General Administrative Agent shall notify the Company
of any participations in any Swingline Loan acquired pursuant to this
paragraph, and thereafter payments in respect of such Swingline Loan shall be
made to the General Administrative Agent and not to the Swingline Lender. Any
amounts received by the Swingline Lender from a Borrower (or other party on
behalf of such Borrower) 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 General Administrative Agent; any such amounts
received by the General Administrative Agent shall be promptly remitted by the
General Administrative Agent to the U.S. Revolving Lenders that shall have made
their payments pursuant to this paragraph and to the Swingline Lender, as their
interests may appear. The purchase of participations in a Swingline Loan
pursuant to this paragraph shall not relieve the Borrowers of any default in
the payment thereof.

ARTICLE VI

General Provisions Applicable to Loans

           SECTION 6.01. 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 to the account of
the Applicable Administrative Agent

37

 

or an Affiliate thereof, most recently designated by it for such purpose by
notice to the Lenders, by 2:00 p.m., Local Time or, in the case of any Japanese
Revolving Loan by 12:00 noon, Local Time. The Applicable Administrative Agent
will make Loans available to the applicable Borrower by promptly crediting the
amounts so received, in like funds, to an account of such Borrower maintained
with the Applicable Administrative Agent in (i) New York City with respect to
Loans made in Dollars, (ii) London with respect to Loans made in a Committed
Currency and (iii) Tokyo with respect to Loans made in Japanese Yen, as the
case may be. If a Borrowing shall not occur on such date because any condition
precedent herein specified shall not have been met, the Applicable
Administrative Agent shall return the amounts so received to the respective
Lenders.

           (b) Unless the Applicable Administrative Agent shall have received notice
from a Lender prior to the proposed date of any Borrowing that such Lender will
not make available to the Applicable Administrative Agent such Lender’s share
of such Borrowing, the Applicable Administrative Agent may assume that such
Lender has made such share available on such date in accordance with paragraph
(a) of this Section 6.01 and may, in reliance upon such assumption, make
available to such Borrower a corresponding amount. In such event, if a Lender
has not in fact made its share of the applicable Borrowing available to the
Applicable Administrative Agent, then the Applicable Lender and the applicable
Borrower severally agree to pay to the Applicable Administrative Agent
forthwith on demand such corresponding amount with interest thereon, for each
day from and including the date such amount is made available to such Borrower
to but excluding the date of payment to the Applicable Administrative Agent, at
(i) in the case of such Lender, (A) in the case of Borrowings denominated in
Dollars, the greater of the Federal Funds Effective Rate and a rate determined
by the Applicable Administrative Agent in accordance with banking industry
rules on interbank compensation and (B) in the case of Borrowings denominated
in any Alternate Currency, the interest rate reasonably determined by the
Applicable Administrative Agent to reflect its cost of funds for the amount
advanced by such Administrative Agent on behalf of such Lender, or (ii) in the
case of such Borrower, the interest rate on the applicable Borrowing; provided
that no repayment by such Borrower pursuant to this sentence shall be deemed to
be a prepayment for purposes of Section 6.11. If such Lender pays such amount
to the Applicable Administrative Agent, then such amount shall constitute such
Lender’s Loan included in such Borrowing.

           SECTION 6.02. Interest Elections. (a) Each Borrowing initially shall be
of the Type specified in the applicable Borrowing Request and, in the case of a
Eurocurrency Borrowing, shall have an initial Interest Period as specified in
such Borrowing Request. Thereafter, the applicable Borrower or the Company (on
its own behalf or on behalf of any other Borrower) may elect to convert such
Borrowing to a different Type or to continue such Borrowing and, in the case of
a Eurocurrency Borrowing, may elect Interest Periods therefor, all as provided
in this Section. The applicable Borrower or the Company (on its own behalf or
on behalf of any other Borrower) may elect different options with respect to
different portions of the affected Borrowing, in which case each such portion
shall be allocated ratably among the Lenders holding the Loans comprising such
Borrowing, and the Loans comprising each such
portion shall be considered a separate Borrowing. This Section shall not
apply to Competitive Borrowings, which may not be converted or continued.

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           (b) To make an election pursuant to this Section, the applicable Borrower
or the Company (on its own behalf or on behalf of any other Borrower) shall
notify the Applicable Administrative Agent of such election by telephone by the
time that a Borrowing Request would be required under Section 2.03 if the
applicable Borrower or the Company (on its own behalf or on behalf of any other
Borrower) were requesting a Borrowing of the Type resulting from such election
to be made on the effective date of such election. Each such telephonic
Interest Election Request shall be irrevocable and shall be confirmed promptly
by hand delivery or telecopy to the Applicable Administrative Agent of a
written Interest Election Request in a form approved by the Applicable
Administrative Agent and signed by the Company or the Applicable Borrower.

           (c) Each telephonic and written Interest Election Request shall specify
the following information in compliance with Section 2.03:

     (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) in the case of Borrowings denominated in Dollars, whether the
resulting Borrowing is to be an ABR Borrowing or Eurocurrency Borrowing;
and

     (iv) if the resulting Borrowing is a Eurocurrency 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 Eurocurrency Borrowing but
does not specify an Interest Period, then the applicable Borrower or the
Company (on its own behalf or on behalf of any other Borrower) shall be deemed
to have selected an Interest Period of one month’s duration.

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

           (e) If the Company or the applicable Borrower fails to deliver a timely
Interest Election Request with respect to a Eurocurrency 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 be (i) converted to an ABR Borrowing if it is denominated in Dollars or
(ii) continued as such with an Interest Period of one month if it is
denominated in an Alternate Currency.

           SECTION 6.03. Termination and Reduction of Commitments. (a) Unless
previously terminated, the Revolving Commitments shall terminate on the
Revolving
Maturity Date and the Term Loan Commitments shall terminate upon the
making of the New Term Loans on the Restatement Date.

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           (b) The Company may at any time terminate, or from time to time reduce,
the Revolving Commitments of a Class; provided that (i) each reduction of the
Revolving Commitments of a Class shall be in an amount that is an integral
multiple of $1,000,000 and not less than $3,000,000 and (ii) the Company shall
not terminate or reduce the Revolving Commitments of such Class if, after
giving effect to any concurrent prepayment of the Revolving Loans of such
Class, (i) the outstanding Revolving Credit Exposure of such Class would exceed
the Revolving Commitment of such Class or (ii) the sum of the Revolving Credit
Exposures plus the Competitive Loan Exposures would exceed the total Revolving
Commitments.

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

           SECTION 6.04. Repayment of Loans; Evidence of Debt. (a) Each of the U.S.
Borrowers and each Borrowing Subsidiary hereby unconditionally promises to pay
to the General Administrative Agent for the account of each U.S. Lender (i) on
the Revolving Maturity Date, the then unpaid principal amount of the U.S.
Revolving Loans of such Lender, (ii) the then unpaid principal amount of each
Competitive Loan made by such U.S. Lender to such Borrower on the last day of
the Interest Period applicable to such Loan and (iii) the then unpaid principal
amount of each Term Loan of such Lender as provided in Section 6.05.

           (b) Each of the Borrowers hereby unconditionally promises to pay to the
Japanese Administrative Agent for the account of each Japanese Lender the then
unpaid principal amount of its Japanese Revolving Loans on the Revolving
Maturity Date.

           (c) Each of the Borrowers hereby unconditionally promises to pay to the
European Administrative Agent for the account of each Multicurrency Lender the
then unpaid principal amount of its Multicurrency Revolving Loans on the
Revolving Maturity Date.

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

           (e) Each Administrative Agent shall maintain a Register pursuant to
subsection 13.04(d) and an account for each applicable Lender in which it shall
record (i) the amount of each Loan made hereunder and any promissory note
evidencing such Loan, the Class

40

 

and Type thereof (and, in the case of an Alternate Currency Loan, the Currency)
and the Interest Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from each Borrower to
each Lender hereunder and (iii) the amount of any sum received by such
Administrative Agent hereunder for the account of the Lenders and each Lender’s
share thereof.

           (f) The entries made in the Register and the accounts of each Lender
maintained pursuant to paragraphs (d) and (e) 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 any Administrative Agent to
maintain such accounts or any error therein shall not in any manner affect the
obligation of any Borrower to repay the Loans in accordance with the terms of
this Agreement.

           (g) Any Lender may request that Loans of any Class made by it be evidenced
by a promissory note. In such event, the applicable Borrower shall prepare,
execute and deliver to such Lender a promissory note payable to the order of
such Lender (or, if requested by such Lender, to such Lender and its registered
assigns) and in a form approved by the General Administrative Agent.
Thereafter, the Loans evidenced by such promissory note and interest thereon
shall at all times (including after assignment pursuant to Section 13.04) 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 assigns).

           SECTION 6.05. Amortization of Term Loans. (a) The U.S. Borrowers shall
repay Term Loans on each date set forth below in the aggregate principal amount
set forth opposite such date:

	 	 	 	 	 
	Date
	 	Amount

	September 30, 2005
	 	$	12,500,000	 
	December 31, 2005
	 	$	12,500,000	 
	March 31, 2006
	 	$	12,500,000	 
	June 30, 2006
	 	$	12,500,000	 
	September 30, 2006
	 	$	37,500,000	 
	December 31, 2006
	 	$	37,500,000	 
	March 31, 2007
	 	$	37,500,000	 
	June 30, 2007
	 	$	37,500,000	 
	September 30, 2007
	 	$	87,500,000	 
	December 31, 2007
	 	$	87,500,000	 
	March 31, 2008
	 	$	87,500,000	 
	Term Loan Maturity Date
	 	$	87,500,000	 

     (b) To the extent not previously paid, all Term Loans shall be due and
payable on the Term Loan Maturity Date.

     (c) Any prepayment of a Term Loan made prior to the Term Loan Convergence
Date shall be allocated ratably between the Existing Term Loans and the New
Term Loans. All prepayments of Term Loans shall be applied to reduce the
subsequent scheduled repayments of the Term Loans to be made pursuant to
this Section ratably.

41

 

     (d) Each repayment of a Borrowing shall be applied ratably to the Loans
included in the repaid Borrowing. Repayments of Term Loans shall be
accompanied by accrued interest on the amount repaid.

     SECTION 6.06. Prepayment of Loans. (a) A Borrower shall have the right
at any time and from time to time to prepay any Borrowing in whole or in part,
subject to prior notice in accordance with paragraph (b) of this Section;
provided that no Borrower shall have the right to prepay any Competitive Loan
without the prior consent of the Lender thereof.

     (b) A Borrower shall notify the General Administrative Agent and the
Applicable Administrative Agent by telephone (confirmed by telecopy) of any
optional or mandatory prepayment hereunder (i) in the case of prepayment of a
Eurocurrency Borrowing, not later than 12:00 noon, Local Time, three Business
Days before the date of prepayment, and (ii) in the case of prepayment of an
ABR Borrowing, not later than 12:00 noon, New York City time, one Business Day
before the date of prepayment. Each such notice shall be irrevocable and shall
specify the prepayment date and the principal amount of each Borrowing or
portion thereof to be prepaid and, in the case of a mandatory prepayment, a
reasonably detailed calculation of the amount of such prepayment; provided
that, if a notice of prepayment is given in connection with a conditional
notice of termination of any Commitments as contemplated by Section 6.03, then
such notice of prepayment may be revoked if such notice of termination is
revoked in accordance with Section 6.03. Promptly following receipt of any
such notice relating to a Borrowing, the Applicable Administrative Agent shall
advise the applicable Lenders of the contents thereof. Each partial prepayment
of any Borrowing shall be in an amount that would be permitted in the case of
an advance of a Borrowing of the same Commitment and Type as provided in
Section 2.02, except as necessary to apply fully the required amount of a
mandatory prepayment. Each prepayment of a Borrowing shall be applied ratably
to the Loans included in the prepaid Borrowing. Prepayments shall be
accompanied by accrued interest to the extent required by Section 6.08.

     (c) In the event and on each occasion that the Company or any Subsidiary
receives any Net Cash Proceeds from a Permitted Receivables Securitization, the
Company shall promptly after such Net Cash Proceeds are received, prepay the
Term Loans in an aggregate amount equal to such Net Cash Proceeds. After the
payment in full of all outstanding Term Loans, the aggregate Revolving
Commitments will be automatically and permanently reduced by the amount of any
Net Cash Proceeds so received (or, following prepayment in full of the Term
Loans, so remaining). Any such reduction of the Revolving Commitments
hereunder shall be applied ratably first to the U.S. Revolving Commitments,
until such time as the U.S. Revolving Commitments equal the Multicurrency
Commitments or the Japanese Commitments, and thereafter ratably to all
Revolving Commitments.

     (d) In the event and on each occasion that the Company or any Subsidiary
receives any Net Cash Proceeds from a Permitted Securities Issuance, the
Company shall promptly after such Net Cash Proceeds are received, prepay the
Term Loans in an aggregate amount equal to such Net Cash Proceeds. After the
payment in full of all outstanding Term Loans, the aggregate Revolving
Commitments will be
automatically and permanently reduced by the amount of any Net Cash
Proceeds so received (or, following prepayment in full of the Term Loans, so
remaining) less the aggregate amount, as of the date of such Permitted
Securities

42

 

Issuance, by which the Revolving Commitments have been reduced or terminated
pursuant to Section 6.03(b), such reduction to be applied ratably first to the
U.S. Revolving Commitments, until such time as the U.S. Revolving Commitments
equal the Multicurrency Commitments or the Japanese Commitments, and thereafter
ratably to all Revolving Commitments.

           (e) If on the last day of any fiscal quarter of the Company for any reason
the sum of the total Revolving Credit Exposures plus the total Competitive Loan
Exposures exceeds the total Revolving Commitments then in effect by more than
5%, the Borrowers shall, as soon as practicable but in no event later than
three Business Days after learning thereof, or, as soon as practicable but in
no event later than three Business Days after the request of the General
Administrative Agent, prepay Revolving Loans and cancel or reduce Letters of
Credit, in an aggregate principal amount equal to the amount of such excess.

           (f) If on the last day of any fiscal quarter of the Company for any reason
the sum of the total Japanese Revolving Credit Exposures exceeds the total
Japanese Commitments then in effect by more than 5%, the Borrowers shall, as
soon as practicable but in no event later than three Business Days after
learning thereof, or, as soon as practicable but in no event later than three
Business Days after the request of the General Administrative Agent,
immediately prepay Japanese Revolving Loans in an aggregate principal amount
equal to the amount of such excess.

           (g) If on the last day of any fiscal quarter of the Company for any reason
the sum of the total Multicurrency Revolving Credit Exposures exceeds the total
Multicurrency Commitments then in effect by more than 5%, the Borrowers shall,
as soon as practicable but in no event later than three Business Days after
learning thereof, or as soon as practicable but in no event later than three
Business Days after the request of the General Administrative Agent, prepay
Multicurrency Revolving Loans in an aggregate principal amount equal to the
amount of such excess.

           (h) The Company and the other Borrowers will use reasonable efforts to
implement and maintain internal controls to monitor the Borrowings and
repayments, with the object of preventing any request for a Borrowing that
would cause conditions specified in the first sentence of each of Sections
2.01(b), (c) and (d) not to be satisfied.

           (i) The Administrative Agents shall not be obligated to calculate the
Dollar Equivalent of any Alternate Currency but may do so from time to time in
their sole discretion.

           SECTION 6.07. Fees. (a) The Company agrees to pay to the General
Administrative Agent for the account of each Lender a facility fee, which shall
accrue at the facility fee rate set forth in the Pricing Grid from time to time
on the daily amount of the Commitments of such Lender (whether used or unused)
during the period from and including the Effective Date to but excluding the
date on which such Commitments terminate; provided that, if such Lender
continues to have any Revolving Credit Exposure after its Commitments
terminate, then such facility fee shall continue to accrue on the daily amount
of such Lender’s Revolving Credit Exposure from and including the date on which
its Commitments terminate to but excluding the date on which such Lender
ceases to have any Revolving Credit Exposure. Accrued facility fees shall
be payable in arrears on the last day of March, June, September and

43

 

December of each year and on the date on which the Commitments terminate,
commencing on the first such date to occur after the Effective Date; provided
that any facility fees accruing after the date on which the Commitments
terminate shall be payable on demand. All facility 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).

           (b) The Company agrees to pay to the Administrative Agents, for their own
account, the administrative, auction and other fees separately agreed upon
between the Company and the Administrative Agents (collectively, the
“Administrative Fees”).

           (c) The Company agrees to pay (i) to the General Administrative Agent for
the account of each U.S. Revolving Lender (including the Issuing Lender) a
participation fee with respect to its participations in Letters of Credit,
which shall accrue at a rate per annum equal to the Applicable Margin
applicable to interest on Eurocurrency Revolving Loans on the average daily
amount of such U.S. Revolving 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 date on which such U.S.
Revolving Lender ceases to have any LC Exposure and (ii) to the Issuing Lender
a fronting fee, which shall accrue at the rate of 0.125% per annum on the
average daily amount of the LC Exposure (excluding any portion thereof
attributable to unreimbursed LC Disbursements) during the period from and
including the Effective Date to but excluding the date on which there ceases to
be any LC Exposure, as well as the Issuing Lender’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 shall
be payable on the last day of March, June, September and December of each year,
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 U.S. Revolving
Commitments terminate and any such fees accruing after the date on which the
U.S. Revolving Commitments terminate shall be payable on demand. Any other
fees payable to the Issuing Lender pursuant to this paragraph shall be payable
promptly after demand. All participation fees and fronting fees shall be
computed on the basis of a year of 360 days and shall be payable for the actual
number of days elapsed (including the first day but excluding the last day).

           (d) All fees payable hereunder shall be paid on the dates due, in
immediately available funds, to the General Administrative Agent for
distribution, in the case of facility fees and participation fees, to the
Lenders. Fees paid shall not be refundable under any circumstances.

           SECTION 6.08. Interest. (a) The Loans comprising each ABR Borrowing
shall bear interest at the Alternate Base Rate plus the Applicable Margin.

           (b) The Loans comprising each Eurocurrency Borrowing shall bear interest
(i) in the case of a Eurocurrency Revolving Loan or Eurocurrency Term Loan, at
the Adjusted Eurocurrency Rate for the Interest Period in effect for such
Borrowing plus the Applicable Margin or (ii) in the case of a Eurocurrency
Competitive Loan, at the
Adjusted Eurocurrency Rate for the Interest Period in effect for such
Borrowing plus (or minus, as applicable) the Competitive Loan Margin applicable
to such Loan.

44

 

           (c) Each Fixed Rate Loan shall bear interest at the Fixed Rate applicable
to such Loan.

           (d) Notwithstanding the foregoing, if any principal of or interest on any
Loan or any fee or other amount payable by any Borrower hereunder is not paid
when due, whether at stated maturity, upon acceleration or otherwise, such
overdue amount shall bear interest, after as well as before judgment, at a rate
per annum equal to (i) in the case of overdue principal of any Loan, 2% plus
the rate otherwise applicable to such Loan as provided in the preceding
paragraphs of this Section or (ii) in the case of any other amount, 2% plus the
rate applicable to ABR Term 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, in the case of Revolving Loans, upon
termination of the Revolving 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 prior to the end of the Revolving Availability
Period), accrued interest on the principal amount repaid or prepaid shall be
payable on the date of such repayment or prepayment and (iii) in the event of
any conversion of any Eurocurrency 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.

           (f) All interest hereunder shall be computed on the basis of a year of 360
days, except that interest computed by reference to the Alternate Base Rate at
time when the Alternate Base Rate is based on clause (a) of the first sentence
of the definition of Alternate Base Rate shall be computed on the basis of a
year of 365 days (or 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 Alternate Base Rate or Eurocurrency
Rate shall be determined by the General Administrative Agent, and such
determination shall be conclusive absent manifest error.

           SECTION 6.09. Alternate Rate of Interest. If prior to the commencement of
any Interest Period for a Eurocurrency Borrowing:

           (a) the General Administrative Agent shall have determined (which
determination shall be made in good faith and shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for
ascertaining the Eurocurrency Rate for the relevant Currency for such Interest
Period; or

           (b) the General Administrative Agent is advised by the Required Lenders
(or, in the case of a Eurocurrency Competitive Loan, the Lender that is
required to make such Loan) that the Eurocurrency Rate for such Interest Period
will not adequately and fairly reflect the cost to such Lenders (or Lender) of
making or maintaining their Loans (or its Loan) included in such Borrowing for
such Interest Period;

then the General Administrative Agent shall give notice thereof to the Company
(on its own behalf or on behalf of the applicable Borrower) and the Lenders by
telephone or
telecopy as promptly as practicable thereafter and, until the General
Administrative Agent notifies the

45

 

Company (on its own behalf or on behalf of the applicable Borrower) and the
Lenders that the circumstances giving rise to such notice no longer exist, (i)
any Interest Election Request that requests the conversion of any Borrowing to,
or continuation of any Borrowing as, a Eurocurrency Borrowing shall be
ineffective, (ii) if any Borrowing Request requests a Eurocurrency Borrowing,
such Borrowing, if denominated in Dollars, shall be made as an ABR Borrowing
and, if denominated in any Alternate Currency, shall be made as a Borrowing
bearing interest at an interest rate reasonably determined by the General
Administrative Agent to compensate the applicable Lenders for such Borrowing in
such Currency for the applicable period and (iii) any request by the Company
(on its own behalf or on behalf of any other Borrower) or any other Borrower
for a Eurocurrency Competitive Borrowing shall be ineffective; provided that
(x) if the circumstances giving rise to such notice do not affect all the
Lenders, then requests by the Company for Eurocurrency Competitive Borrowings
may be made to Lenders that are not affected thereby and (y) if the
circumstances giving rise to such notice affect only one Type of Borrowing,
then the other Type of Borrowings shall be permitted.

           SECTION 6.10. 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 for any such
reserve requirement which is reflected in the Adjusted Eurocurrency
Rate); or

     (ii) impose on any Lender, the London interbank market, the Tokyo
interbank market or any other interbank market relevant to the funding of
Loans in Alternate Currencies any other condition affecting this
Agreement or Eurocurrency Loans or Fixed Rate Loans made by such Lender;

and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Eurocurrency Loan or Fixed Rate Loan (or of
maintaining its obligation to make any such Loan) or issuing or participating
in Letters of Credit by an amount deemed by such Lender to be material or to
reduce the amount of any sum received or receivable by such Lender hereunder
(whether of principal, interest or otherwise) by an amount deemed by such
Lender to be material, then the applicable Borrower will pay to such Lender
such additional amount or amounts as will compensate such Lender for such
additional costs actually incurred or reduction actually suffered.

           (b) If any Lender 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 capital or on the capital of such Lender’s holding company, if
any, as a consequence of this Agreement or the Loans made by such Lender to a
level below that which such Lender or such Lender’s holding company could have
achieved but for such Change in Law (taking into consideration such Lender’s
policies and the policies of such Lender’s holding company with respect to
capital adequacy) by an amount deemed by such Lender to be material, then from
time to time the applicable Borrower will pay to such Lender such additional
amount or amounts as will compensate such Lender or such Lender’s holding
company for any such reduction suffered.

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           (c) A certificate of a Lender setting forth the amount or amounts
necessary to compensate such Lender or its holding company as specified in
paragraph (a) or (b) of this Section and setting forth in reasonable detail the
manner in which such amount or amounts shall have been determined, shall be
delivered to the applicable Borrower and shall be conclusive absent manifest
error. The applicable Borrower shall pay such Lender the amount shown as due
on any such certificate within 10 days after receipt thereof.

           (d) Failure or delay on the part of any Lender to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender’s right
to demand such compensation; provided that the Borrowers shall not be required
to compensate a Lender pursuant to this Section for any increased costs or
reductions incurred more than 90 days prior to the date that such Lender
notifies such Borrower of the Change in Law giving rise to such increased costs
or reductions and of such Lender’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 90-day period referred to above shall be
extended to include the period of retroactive effect thereof.

           (e) Notwithstanding the foregoing provisions of this Section, a Lender
shall not be entitled to compensation pursuant to this Section in respect of
any Competitive Loan if the Change in Law that would otherwise entitle it to
such compensation shall have been publicly announced prior to submission of the
Competitive Bid pursuant to which such Loan was made. The obligations of the
Borrowers under this Section shall survive the termination of this Agreement
and the payment of the Loans and all other amounts payable hereunder.

           SECTION 6.11. Break Funding Payments. In the event of (a) the payment or
prepayment of any principal of any Eurocurrency Loan or Fixed Rate Loan other
than on the last day of an Interest Period applicable thereto (including as a
result of an Event of Default), (b) the conversion of any Eurocurrency Loan
other than on the last day of the Interest Period applicable thereto, (c) the
failure to borrow, convert, continue or prepay any Loan on the date specified
in any notice delivered pursuant hereto (regardless of whether such notice may
be revoked under Section 6.06(b) and is revoked in accordance therewith), (d)
the failure to borrow any Competitive Loan after accepting the Competitive Bid
to make such Loan or (e) the assignment of any Eurocurrency Loan or Fixed Rate
Loan other than on the last day of the Interest Period applicable thereto as a
result of a request by any Borrower pursuant to Section 6.14, then, in any such
event, the applicable Borrower shall compensate each Lender for the
out-of-pocket loss, cost and expense attributable to such event. In the case
of a Eurocurrency Loan, such loss, cost or expense to any Lender shall be
deemed to include an amount determined by such Lender to be the present value
of the excess, if any, of (i) its cost of obtaining the funds for the Loan
being paid, prepaid, refinanced or not borrowed (assumed to be the Eurocurrency
Rate applicable thereto) for the period from the date of such payment,
prepayment, refinancing or failure to borrow or refinance to the last day of
the Interest Period for such Loan (or, in the case of a failure to borrow or
refinance the Interest Period for such Loan which would have commenced on the
date of such failure) over (ii) the amount of interest (as reasonably
determined by such Lender) that would be realized by such Lender in reemploying
the funds so paid, prepaid or not borrowed or refinanced for such period or
Interest Period, as the case may be. A certificate of any Lender setting
forth any amount or amounts that such Lender is entitled to receive pursuant to
this Section and setting forth in reasonable detail the manner in which such
amount or

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amounts shall have been determined shall be delivered to the applicable
Borrower and shall be conclusive absent manifest error. Such Borrower shall
pay such Lender the amount shown as due on any such certificate within 10 days
after receipt thereof. The obligations of the Borrowers under this Section
shall survive the termination of this Agreement and the payment of the Loans
and all other amounts payable hereunder.

           SECTION 6.12. Taxes. (a) Any and all payments to the Lenders or the
Administrative Agents hereunder by a Borrower or on behalf of any Borrower
shall be made free and clear of and without deduction for any and all current
or future Taxes or Other Taxes (as defined in Section 6.12(b) below), excluding
(i) Taxes imposed on any Administrative Agent or any Lender (or participant) as
a result of a present or former connection between such Administrative Agent or
such Lender (or participant) and the jurisdiction of the Governmental Authority
imposing such Tax or any political subdivision or taxing authority thereof or
therein (other than as a result of entering into this Agreement, performing any
obligations hereunder, receiving any payments hereunder or enforcing any rights
hereunder) and (ii) any Taxes that are attributable solely to the failure of
any Lender to comply with Section 6.12 (g) or 6.12 (h) (all such nonexcluded
Taxes or Other Taxes, collectively or individually, “Non-Excluded Taxes”). If
the relevant Borrower shall be required to deduct any Non-Excluded Taxes from
or in respect of any sum payable hereunder to any Lender or any Administrative
Agent, (i) the sum payable shall be increased by the amount (an “Additional
Amount”) necessary so that after making all required deductions (including
deductions applicable to Additional Amounts payable under this Section 6.12)
such Lender or such Administrative Agent (as the case may be) shall receive an
amount equal to the sum it would have received had no such deductions been
made, (ii) the relevant Borrower shall make such deductions and (iii) the
relevant Borrower shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.

           (b) In addition, the relevant Borrower (or the Guarantors, as applicable)
shall pay to the relevant Governmental Authority in accordance with applicable
law any current or future stamp, intangibles or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment
made hereunder or from the execution, delivery or registration of, or otherwise
with respect to, this Agreement or any other Loan Document that are imposed by
a Governmental Authority in a jurisdiction in which the relevant Borrower (or
Guarantor, as applicable) is incorporated, organized, managed and controlled or
considered to have its seat or otherwise has a connection (other than as a
result of entering into this Agreement, performing any obligations hereunder,
making any payments hereunder or enforcing any rights hereunder (“Other
Taxes”).

           (c) The relevant Borrower (or Guarantor, as applicable) shall indemnify
each Lender (or participant) and each Administrative Agent for the full amount
of Non-Excluded Taxes paid by such Lender (or participant) or such
Administrative Agent, as the case may be, and any liability (including
penalties, interest and expenses (including reasonable attorney’s fees and
expenses)) arising therefrom or with respect thereto, whether or not such
Non-Excluded Taxes were correctly or legally asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or
liability prepared by a Lender, or an Administrative Agent on its behalf and
setting forth in reasonable detail the manner in which such amount shall
have been determined, absent manifest error, shall be final, conclusive and
binding for all purposes. Such indemnification shall be made within 30 days
after the date the Lender or the

48

 

Administrative Agent, as the case may be, makes written demand therefor, which
written demand shall be made within 60 days of the date such Lender or
Administrative Agent receives written demand for payment of such Non-Excluded
Taxes from the relevant Governmental Authority.

           (d) If a Lender (or participant) or an Administrative Agent receives a
refund, which in its reasonable judgment is in respect of any Non-Excluded
Taxes as to which it has been indemnified by the relevant Borrower or with
respect to which the relevant Borrower has paid Additional Amounts pursuant to
this Section 6.12, it shall within 30 days from the date of such receipt pay
over such refund to the relevant Borrower (but only to the extent of indemnity
payments made, or Additional Amounts paid, by the relevant Borrower under this
Section 6.12 with respect to the Non-Excluded Taxes giving rise to such
refund), net of all out-of-pocket expenses of such Lender (or participant) or
such Administrative Agent and without interest (other than interest paid by the
relevant Governmental Authority with respect to such refund); provided,
however, that the relevant Borrower, upon the request of such Lender (or
participant) or such Administrative Agent, agrees to repay the amount paid over
to the relevant Borrower (plus penalties, interest or other charges) to such
Lender (or participant) or such Administrative Agent in the event such Lender
(or participant) or such Administrative Agent is required to repay such refund
to such Governmental Authority.

           (e) As soon as practicable after the date of any payment of Non-Excluded
Taxes by the relevant Borrower to the relevant Governmental Authority, the
relevant Borrower will deliver to the applicable Administrative Agent at its
address referred to in Section 13.01, the original or a certified copy of a
receipt issued by such Governmental Authority evidencing payment thereof.

           (f) Without prejudice to the survival of any other agreement contained
herein, the agreements and obligations contained in this Section 6.12 shall
survive the payment in full of the principal of and interest on all Loans made
hereunder.

           (g) Each Lender (or participant) that is not a United States Person as
defined in Section 7701(a)(30) of the Code (a “Non-U.S. Lender”) shall deliver
to the Company and the applicable Administrative Agent two copies of either (i)
United States Internal Revenue Service Form W-8BEN or W8ECI or any subsequent
or substitute versions thereof or successors thereto or (ii) in the case of a
Non-U.S. Lender claiming exemption from U.S. Federal withholding tax under
Section 871 (h) or 881 (c) of the Code with respect to payments of “portfolio
interest,” a Form W-8BEN, or any subsequent or substitute versions thereof or
successors thereto (and, if such Non-U.S. Lender delivers a Form W-8BEN
pursuant to this clause (ii), a certificate representing that such Non-U.S.
Lender is not a bank for purposes of Section 881(c)(3)(A) of the Code, is not a
10 percent shareholder (within the meaning of Section 881(c)(3)(B) of the Code)
of the Company and is not a controlled foreign corporation related to the
Company (within the meaning of Section 881(c)(3)(C) of the Code)), in each case
properly completed and duly executed by such Non-U.S. Lender claiming complete
exemption from, or reduced rate of, U.S. Federal withholding tax on payments by
the Company under this Agreement. Each Lender (or participant) that is a U.S.
Person as defined in Section 7701(a)(30) of the Code shall deliver to the
Company and the applicable
Administrative Agent two copies of Internal Revenue Service Form W-9, or
any subsequent or substitute versions thereof or successors thereto, certifying
that

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such Lender (or participant) is entitled to a complete exemption from U.S.
Federal backup withholding tax on payments made pursuant to this Agreement.
Such forms shall be delivered by each Lender on or before the date it becomes a
party to this Agreement (or, in the case of a participant, on or before the
date such participant becomes a participant hereunder) and on or before the
date, if any, such Lender changes its applicable lending office by designating
a different lending office (a “New Lending Office”), unless each of the
applicable lending office prior to such designation and the New Lending Office
are located within the United States. In addition, each Lender shall deliver
such forms promptly upon the obsolescence or invalidity of any form previously
delivered by such Lender. Notwithstanding any other provision of this Section
6.12(g), a Lender shall not be required to deliver any form pursuant to this
Section 6.12(g) that such Lender is not legally able to deliver.

           (h) A Lender (or participant) that is entitled to an exemption from or
reduction of non-U.S. withholding tax under the law of the jurisdiction in
which a Borrower (other than the Company) is located, or any treaty to which
such jurisdiction is a party, with respect to payments under this Agreement,
shall deliver to such Borrower (with a copy to the applicable Administrative
Agent), at the time or times prescribed by applicable law or reasonably
requested by such Borrower, such properly completed and executed documentation
prescribed by applicable law as will permit such payments to be made without
withholding or at a reduced rate, provided that such Lender (or participant) is
legally entitled to complete, execute and deliver such documentation and in
such Lender’s reasonable judgment such completion, execution or submission
would not materially prejudice the legal position of such Lender (or
participant).

           (i) The relevant Borrower shall not be required to indemnify any Lender,
or to pay any Additional Amounts to any Lender, in respect of any withholding
tax pursuant to paragraph (a) or (c) above to the extent that (i) the
obligation to withhold amounts with respect to such withholding tax was in
effect and would apply to amounts payable to such Lender on the date such
Lender became a party to this Agreement (or, in the case of a participant, on
the date such participant became a participant hereunder) or, with respect to
payments to a New Lending Office, the date such Lender designated such New
Lending Office with respect to a Loan or, with respect to payments by a
Borrower pursuant to a Competitive Loan, as of the date the Company accepts a
Competitive Bid pursuant to Section 3.01(d); provided, however, that this
clause (i) shall not apply to any Lender (or participant) if the assignment,
participation, transfer or designation of a New Lending Office was made at the
request of the relevant Borrower; and provided further, however, that this
clause (i) shall not apply (x) to the extent the indemnity payment or
Additional Amounts any Lender (or participant) would be entitled to receive
(without regard to this clause (i)) do not exceed the indemnity payment or
Additional Amounts that the Lender (or participant) making the assignment,
participation, transfer or designation of such New Lending Office would have
been entitled to receive in the absence of such assignment, participation,
transfer or designation or (y) to the extent the obligation to withhold such
amounts is an obligation of, or an obligation in respect of payments made by, a
Borrowing Subsidiary that becomes a Borrowing Subsidiary after the Restatement
Date, or (ii) the obligation to pay such Additional Amounts would not
have arisen but for a failure by such Lender (or participant) to comply
with the provisions of paragraph (g) or (h) of this Section 6.12.

           (j) Any Lender (or participant) claiming any indemnity payment or
Additional Amounts payable pursuant to this Section 6.12 shall use reasonable
efforts (consistent

50

 

with legal and regulatory restrictions) to file any certificate or document
reasonably requested in writing by the relevant Borrower or to change the
jurisdiction of its applicable lending office if the making of such a filing or
change would avoid the need for or reduce the amount of any such indemnity
payment or Additional Amounts that may thereafter accrue and would not, in the
sole determination of such Lender (or participant), be otherwise
disadvantageous to such Lender (or participant).

           (k) Nothing contained in this Section 6.12 shall require any Lender (or
participant) or any Administrative Agent to make available any of its tax
returns (or any other information that it deems to be confidential or
proprietary).

           SECTION 6.13. Payments Generally; Pro Rata Treatment; Sharing of Setoffs.
(a) Each Borrower shall make each payment required to be made by it hereunder
(whether of principal, interest, fees, or of amounts payable under Section
6.10, 6.11 or 6.12, or otherwise) prior to 3:00 p.m., Local Time or, in the
case of any Japanese Revolving Loan, by 12:00 noon Local Time at the place of
payment, on the date when due, in immediately available funds, without setoff
or counterclaim. Any amounts received after such time on any date may, in the
discretion of the Applicable Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating
interest thereon. All such payments shall be made to the Applicable
Administrative Agent at its offices referred to in Section 13.01, or such other
location as such Administrative Agent shall designate from time to time, except
that payments pursuant to Sections 6.10, 6.11 or 6.12 and 13.05 shall be made
directly to the Persons entitled thereto. The Applicable Administrative 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 hereunder shall be due on a day that is not a Business Day, the date
for payment shall be extended to the next succeeding Business Day, and, in the
case of any payment accruing interest, interest thereon shall be payable for
the period of such extension. All payments hereunder shall be made in the
Currency in which the applicable payment obligation is due.

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

           (c) If any Lender shall, by exercising any right of setoff or counterclaim
or otherwise, obtain payment in respect of any principal of or interest on any
of its Revolving Loans or Term Loans or in respect of its interest in any
Letters of Credit resulting in such Lender receiving payment of a greater
proportion of the aggregate amount of its Revolving Loans, Terms Loans and
accrued interest thereon or its interest in Letters of Credit than the
proportion received by any other Lender participating in such Loan or Letters
of Credit, then the Lender receiving such greater proportion shall purchase
(for cash at face value) participations in the Revolving Loans,
the Term Loans and Letters of Credit of such other Lenders to the extent
necessary so that the benefit of all such payments shall be shared by such
Lenders ratably in

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accordance with the aggregate amount of principal of and accrued interest on
their respective Revolving Loans, Term Loans and Letters of Credit; provided
that (i) if any such participations are purchased and all or any portion of the
payment giving rise thereto is recovered, such participations shall be
rescinded and the purchase price restored to the extent of such recovery,
without interest and (ii) the provisions of this paragraph shall not be
construed to apply to any payment made by any Borrower pursuant to and in
accordance with the express terms of this Agreement or any payment obtained by
a Lender as consideration for the assignment of or sale of a participation in
any of its Loans to any assignee or participant, other than to the Company or
any Subsidiary or Affiliate thereof (as to which the provisions of this
paragraph shall apply). Each Borrower consents to the foregoing and agrees, to
the extent it may effectively do so under applicable law, that any Lender
acquiring a participation pursuant to the foregoing arrangements may exercise
against such Borrower rights of setoff and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of such
Borrower in the amount of such participation.

           (d) Unless the Applicable Administrative Agent shall have received notice
from a Borrower prior to the date on which any payment is due to the Applicable
Administrative Agent for the account of the Lenders hereunder that such
Borrower will not make such payment, the Applicable Administrative Agent may
assume that such Borrower has made such payment on such date in accordance
herewith and may, in reliance upon such assumption, distribute to the Lenders
the amount due. In such event, if such Borrower has not in fact made such
payment, then each of the Applicable Lenders severally agrees to repay to the
Applicable Administrative Agent forthwith on demand the amount so distributed
to such Lenders 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
Applicable Administrative Agent, (i) if the relevant amount is denominated in
Dollars, at the greater of the Federal Funds Effective Rate and a rate
determined by the Applicable Administrative Agent in accordance with banking
industry rules on interbank compensation and (ii) if the relevant amount is
denominated in any other Currency, at the interest rate reasonably determined
by the Applicable Administrative Agent to reflect the cost of funds for the
amount paid by such Administrative Agent on behalf of such Borrower.

           (e) If any Lender shall fail to make any payment required to be made by it
pursuant to Section 6.01 (b) or 6.12(d), then the Applicable Administrative
Agent may, in its discretion (notwithstanding any contrary provision hereof),
apply any amounts thereafter received by such Administrative Agent for the
account of such Lender to satisfy such Lender’s obligations under such Sections
until all such unsatisfied obligations are fully paid.

           SECTION 6.14. Mitigation Obligations; Replacement of Lenders. (a) If any
Lender requests compensation under Section 6.10, or if any Borrower is required
to pay any Additional Amount to any Lender or any Governmental Authority for
the account of any Lender pursuant to Section 6.12, then such Lender shall use
reasonable efforts to file any certificate or document requested by the
applicable Borrower (consistent with legal and regulatory restrictions), 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 filing, designation or assignment (i) would
eliminate or reduce amounts payable pursuant to Section 6.10 or 6.12, as the
case may be, in the future and (ii) would not otherwise be disadvantageous to
such Lender.

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           (b) If any Lender requests compensation under Section 6.10, or if any
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 6.12,
or if any Lender defaults in its obligation to fund Loans hereunder, then such
Borrower may, upon notice to such Lender and the applicable Administrative
Agent, require such Lender to assign and delegate, without recourse (in
accordance with and subject to the restrictions contained in Section 13.04),
all its interests, rights and obligations under this Agreement (other than any
outstanding Competitive Loans held by it and any and all rights and interests
related thereto) to an assignee that shall assume such obligations (which
assignee may be another Lender, if a Lender accepts such assignment); provided
that (i) such Borrower shall have received the prior written consent of the
Administrative Agents which consent shall not unreasonably be withheld, (ii)
such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans (other than Competitive Loans), accrued interest
thereon, accrued fees and all other amounts payable to it hereunder, from the
assignee (to the extent of such outstanding principal and accrued interest and
fees) or such Borrower (in the case of all other amounts) and (iii) in the case
of any such assignment resulting from a claim for compensation under Section
6.10 or payments required to be made pursuant to Section 6.11, such assignment
will result in a reduction in such compensation or payments.

ARTICLE VII

Representations and Warranties

           The Company represents and warrants to each of the Lenders and each of the
Administrative Agents that:

           SECTION 7.01. Organization; Powers. Each Credit Party (a) is duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, (b) has all requisite power and authority to
own its property and assets and to carry on its business as now conducted and
as proposed to be conducted and (c) is qualified to do business in every
jurisdiction where such qualification is required, except where the failure so
to qualify would not result in a Material Adverse Effect. Each Credit Party
has the corporate power and authority to execute and deliver this Agreement
(or, in the case of the Borrowing Subsidiaries, the Borrowing Subsidiary
Agreements), to perform its obligations under this Agreement and to borrow
hereunder.

           SECTION 7.02. Authorization. The Transactions (a) are within each Credit
Party’s corporate powers and have been duly authorized by all requisite
corporate action and (b) do not (i) violate (A) any provision of any law,
statute, rule or regulation (including, without limitation, the Margin
Regulations), (B) any provision of the certificate of incorporation or other
constitutive documents or by-laws of the Company or any Subsidiary, (C) any
order of any Governmental Authority or (D) any provision of any indenture,
agreement or other instrument to which the Company or any Subsidiary is a party
or by which it or any of its property is or may be bound, (ii) conflict with,
result in a breach of or constitute (alone or with notice or lapse of time or
both) a default under any such indenture, agreement or other instrument or
(iii) result in the creation or imposition
of any lien upon any property or assets of the Company or any Subsidiary
other than, in the case of clauses (i)(A), (i)(C), (i)(D), (ii) and (iii), any
such violations, conflicts,

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breaches, defaults or liens that, individually or in the aggregate, would not
have a Material Adverse Effect.

           SECTION 7.03. Enforceability. This Agreement has been duly executed and
delivered by each of the Credit Parties and constitutes, and each other Loan
Document constitutes or, when executed and delivered, will constitute a legal,
valid and binding obligation of each Credit Party thereto, enforceable in
accordance with its terms (subject, as to enforceability, to applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting creditors’ rights generally and to general principles of equity
(regardless of whether such enforceability is considered in a proceeding at law
or in equity)).

           SECTION 7.04. Governmental Approvals. No action, consent or approval of,
registration or filing with or other action by any Governmental Authority is
required in connection with the Transactions except such as have, or on or
prior to the Restatement Date will have, been obtained or made and are in full
force and effect or except for the failure of which to obtain could not
reasonably be expected to have a Material Adverse Effect.

           SECTION 7.05. Financial Statements; No Material Adverse Effect. (a) The
Company has heretofore furnished to the Administrative Agents and the Lenders
its consolidated balance sheet and statements of income, stockholders’ equity
and cash flows (i) as of and for the fiscal year ended December 31, 2003,
reported on by PricewaterhouseCoopers LLP, independent public accountants, and
(ii) as of and for the fiscal quarter and the portion of the fiscal year ended
March 31, 2004, certified by its chief financial officer. Such financial
statements present fairly, in all material respects, the financial position and
results of operations and cash flows of the Company and its consolidated
Subsidiaries as of such dates and for such periods in accordance with GAAP,
subject to year-end audit adjustments and the absence of footnotes in the case
of the statements referred to in clause (ii) above.

           (b) Since December 31, 2003, there has been no material adverse effect on
the business, operations, properties or financial condition of the Company and
its Subsidiaries, taken as a whole.

           SECTION 7.06. Litigation, Compliance with Laws. (a) There are no
actions, proceedings or investigations filed or (to the knowledge of the
Company) threatened against the Company or any Subsidiary in any court or
before any Governmental Authority or arbitration board or tribunal which
question the validity or legality of this Agreement, the Transactions or any
action taken or to be taken pursuant to this Agreement and no order or judgment
has been issued or entered restraining or enjoining the Company from the
execution, delivery or performance of this Agreement nor is there any other
action, proceeding or investigation filed or (to the knowledge of the Company)
threatened against the Company or any Subsidiary in any court or before any
Governmental Authority or arbitration board or tribunal as to which there is a
reasonable likelihood of an adverse determination and that, if adversely
determined, would be reasonably likely to result in a Material Adverse Effect.

           (b) Neither the Company nor any Subsidiary is in violation of any law,
rule or regulation, or in default with respect to any judgment, writ,
injunction or decree of any

54

 

Governmental Authority, where such violation or default would be reasonably
likely to result in a Material Adverse Effect.

           SECTION 7.07. Federal Reserve Regulations. No part of the proceeds of any
Loan will be used, whether directly or indirectly, and whether immediately,
incidentally or ultimately, for any purpose which entails a violation of, or
which is inconsistent with, the provisions of the Margin Regulations.

           SECTION 7.08. Taxes. The Company and the Subsidiaries have filed or
caused to be filed all Federal and material state, local and foreign Tax
returns which are required to be filed by them, and have paid or caused to be
paid all material Taxes required to have been paid by them, other than any
Taxes or assessments the validity of which is being contested in good faith by
appropriate proceedings, and with respect to which appropriate accounting
reserves have, to the extent required by GAAP, been set aside.

           SECTION 7.09. Employee Benefit Plans. The present aggregate value of
accumulated benefit obligations of each Plan and each foreign employee pension
benefit plan required to be funded (based on those assumptions used for
disclosure of such obligations in corporate financial statements in accordance
with GAAP) did not, as of the most recent statements available, exceed the
aggregate value of the assets for each plan by an amount in the aggregate for
all such plans that would reasonably be expected to have a Material Adverse
Effect. Except as would not individually or in the aggregate be reasonably
expected to have a Material Adverse Effect, (a) no ERISA Termination Event has
occurred or (b) each Plan has been established and administered in accordance
with its terms and in compliance with the applicable provisions of ERISA, the
Code and other applicable laws, rules and regulations.

           SECTION 7.10. Environmental and Safety Matters. Other than exceptions to
any of the following that would not in the aggregate have a Material Adverse
Effect: (a) the Company and the Subsidiaries comply and have complied with all
applicable Environmental and Safety Laws; (b) there are and have been no
Hazardous Substances at any property owned, leased or operated by the Company
now or in the past, or at any other location, that could reasonably be expected
to result in liability of the Company or any Subsidiary under any Environmental
and Safety Law or result in costs to any of them arising out of any
Environmental and Safety Law; (c) there are no past, present, or, to the
knowledge of the Company and the Subsidiaries, anticipated future events,
conditions, circumstances, practices, plans, or legal requirements that could
reasonably be expected to prevent the Company or any of the Subsidiaries from,
or increase the costs to the Company or any of the Subsidiaries of, complying
with applicable Environmental and Safety Laws or obtaining or renewing all
material permits, approvals, authorizations, licenses or permissions required
of any of them pursuant to any such law; and (d) neither the Company nor any of
the Subsidiaries has retained or assumed, by contract or operation of law, any
liability, fixed or contingent, under any Environmental and Safety Law.

           SECTION 7.11. Properties. (a) Each of the Company and its Subsidiaries
has good title to, or valid leasehold interests in, all its real and personal
property that are
material to the business of the Company and its Subsidiaries taken as a
whole, except for defects in title that could not reasonably be expected to
result in a Material Adverse Effect.

55

 

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

           SECTION 7.12. Investment and Holding Company Status. Neither the Company
nor any of its Subsidiaries is (a) an “investment company” as defined in, or
subject to regulation under, the Investment Company Act of 1940 or (b) a
“holding company” as defined in, or subject to regulation under, the Public
Utility Holding Company Act of 1935.

ARTICLE VIII

Conditions

           SECTION 8.01. Restatement Date. The effectiveness of the amendment and
restatement of the Existing Credit Agreement and the obligation of each Lender
with a Term Loan Commitment to make New Term Loans on the Restatement Date are
subject to the satisfaction of the following conditions:

           (a) The General Administrative 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 General
Administrative Agent (which may include telecopy transmission of a signed
signature page of this Agreement) that such party has signed a counterpart of
this Agreement.

           (b) The General Administrative Agent shall have received, with a
counterpart or copy for each Lender, such documents and certificates as the
General Administrative Agent or its counsel may reasonably request relating to
the organization, existence and good standing of each Credit Party, the
authorization of the Transactions and other legal matters relating to the
Credit Parties, the Loan Documents or the Transactions, all in form and
substance reasonably satisfactory to the General Administrative Agent and its
counsel.

           (c) The representations and warranties of each Credit Party set forth in
the Loan Documents shall be true and correct on and as of the Effective Date,
except to the extent such representations and warranties expressly relate to an
earlier or later date and no Default shall have occurred and be continuing, and
the General Administrative Agent shall have received, with a counterpart or
copy for each Lender, a certificate signed by the President, a Vice President
or a Financial Officer of the Company confirming the foregoing.

           (d) The General Administrative Agent shall have received all fees and
other amounts due and payable on or prior to the Restatement Date, including,
to the extent invoiced, reimbursement or payment of all out-of-pocket expenses
required to be reimbursed or paid by any Credit Party hereunder or under any
Loan Document.

           (e) The General Administrative Agent (or its counsel) shall have received
a favorable written opinion (addressed to the General Administrative Agent and
the Lenders and

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dated the Effective Date) from Baker & Daniels, U.S. counsel for the Borrowers,
substantially in the form of Exhibit C and covering such other matters relating
to the Credit Parties, the Loan Documents or the Transactions as the General
Administrative Agent or the Lenders shall reasonably request. The Company
hereby requests such counsel to deliver such opinion.

           (f) The General Administrative Agent shall have received updated schedules
to the Existing Credit Agreement, in form and substance reasonably satisfactory
to the General Administrative Agent and its counsel.

           (g) The 364-Day Credit Agreement shall have been executed and delivered by
each of the parties thereto.

           (h) The Lenders shall have received, to the extent requested, all
documentation and other information required by regulatory authorities under
applicable “know your customer” and anti-money laundering rules and
regulations, including the U.S.A. Patriot Act.

           SECTION 8.02. Conditions to All Other Extensions of Credit. The
obligation of each Lender to make a Loan on the occasion of any Borrowing
(other than a Borrowing made solely to refinance outstanding Borrowings that
does not increase the aggregate principal amount of the Loans of any Lender
outstanding), and of the Issuing Lender to issue, amend, renew or extend any
Letter of Credit is subject to the satisfaction of the following conditions:

           (a) The General Administrative Agent and the Applicable Administrative
Agent shall have received a Borrowing Request in accordance with Section 2.03.

           (b) The Restatement Date shall have occurred.

           (c) The representations and warranties of each Credit Party set forth in
the Loan Documents shall be true and correct on and as of the date of any such
Borrowing or the date of issuance, amendment, renewal or extension of such
Letter of Credit, as applicable, except to the extent such representations and
warranties expressly relate to an earlier or later date.

           (d) 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 the issuance, amendment, renewal or extension of each 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 (c) and
(d) of this Section.

           SECTION 8.03. Initial Borrowing by Each Borrowing Subsidiary. The
obligation of each Lender to make a Loan on the occasion of the first Borrowing
by each Borrowing Subsidiary is subject to the satisfaction of the condition
that the General Administrative Agent (or its counsel) shall have received a
Borrowing Subsidiary Agreement properly executed by such Borrowing Subsidiary
and the Company.

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ARTICLE IX

Affirmative Covenants

           The Company covenants and agrees with each Lender and each Administrative
Agent that so long as this Agreement shall remain in effect or the principal of
or interest on any Loan, any fees or any other amounts payable hereunder shall
be unpaid or any Letter of Credit remains outstanding, unless the Required
Lenders shall otherwise consent in writing, it will, and will cause each of the
Subsidiaries to, on and after the Restatement Date:

           SECTION 9.01. Existence. Do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate, partnership and/or
limited liability company existence and its rights and franchises that are
material to the business of the Company and its Subsidiaries as a whole, except
as expressly permitted under Section 10.01 or 10.06 and except, in the case of
any Subsidiary, where the failure to do so would not result in a Material
Adverse Effect.

           SECTION 9.02. Business and Properties. Comply in all respects with all
applicable laws, rules, regulations and orders of any Governmental Authority
(including Environmental and Safety Laws and ERISA), whether now in effect or
hereafter enacted except instances that could not, in the aggregate, reasonably
be expected to result in a Material Adverse Effect; and at all times maintain
and preserve all property material to the conduct of the business of the
Company and its Subsidiaries as a whole and keep such property in good repair,
working order and condition and from time to time make, or cause to be made,
all needful and proper repairs, renewals, additions, improvements and
replacements thereto necessary in order that the business carried on in
connection therewith may be properly conducted at all times, except where the
failure to do so would not result in a Material Adverse Effect.

           SECTION 9.03. Financial Statements, Reports, Etc. Furnish to the
Administrative Agents for distribution to each Lender (except in the case of
the materials required by paragraphs (d) below, which shall only be furnished
to the General Administrative Agent, the Japanese Administrative Agent and the
Japanese Lenders):

           (a) within 105 days after the end of each fiscal year, its annual report
on Form 10-K as filed with the SEC, including its consolidated balance sheet
and the related consolidated earnings statement showing its consolidated
financial condition as of the close of such fiscal year and the consolidated
results of its operations during such year, all audited by
PricewaterhouseCoopers LLP or other independent certified public accountants of
recognized national standing selected by the Company and accompanied by an
opinion of such accountants to the effect that such consolidated financial
statements fairly present the Company’s financial condition and results of
operations on a consolidated basis in accordance with GAAP;

           (b) within 60 days after the end of each of the first three fiscal
quarters of each fiscal year, its quarterly report on Form 10-Q as filed with
the SEC, including its unaudited consolidated balance sheet and related
consolidated earnings statement, showing its consolidated financial condition
as of the close of such fiscal quarter and the
consolidated results of its operations during such fiscal quarter and the
then elapsed portion of the fiscal year (and each

58

 

delivery of such statements shall be deemed a representation that such
statements fairly present the Company’s financial condition and results of
operations on a consolidated basis in accordance with GAAP, subject to normal
year-end audit adjustments and the absence of footnotes);

           (c) concurrently with any delivery of financial statements under paragraph
(a) or (b) above, a certificate of a Financial Officer (i) certifying that no
Event of Default or Default has occurred or, if such an Event of Default or
Default has occurred, specifying the nature and extent thereof and any
corrective action taken or proposed to be taken with respect thereto and (ii)
demonstrating in reasonable detail calculation of the covenants set forth in
Section 10.04 as of the last day of the period covered by such financial
statements;

           (d) promptly after the same become publicly available, copies of all
reports on Form 8-K filed by it with the SEC, or any Governmental Authority
succeeding to any of or all the functions of the SEC, or copies of all reports
distributed to its shareholders, as the case may be; and

           (e) promptly, from time to time, such other information as any Lender
shall reasonably request through the General Administrative Agent, including
any additional information relating to any one-time integration or transaction
costs referred to in clause (f) of the definition of the term “Consolidated
EBITDA” (it being understood that the Company shall not be required to provide
any information or documents which are subject to confidentiality provisions
the nature of which prohibit such disclosure).

Information required to be delivered pursuant to this Section shall be deemed
to have been delivered on the date on which the Company provides notice
(reasonably identifying where the applicable disclosure may be obtained) to the
General Administrative Agent that such information has been posted on the
Company’s website on the internet at www.zimmer.com, or on the SEC’s website on
the internet at www.sec.gov or at another website identified in such notice and
accessible by the Lenders without charge.

          SECTION 9.04. Insurance. Keep its insurable properties adequately insured
at all times by financially sound and reputable insurers (which may include
captive insurers), and maintain such other insurance or self insurance
(including product liability insurance), to such extent and against such risks,
including fire and other risks insured against by extended coverage, as is
customary with companies similarly situated and in the same or similar
businesses.

          SECTION 9.05. Obligations and Taxes. Pay and discharge promptly when due
all material taxes, assessments and governmental charges imposed upon it or
upon its income or profits or in respect of its property, in each case before
the same shall become delinquent or in default and before penalties accrue
thereon, unless and to the extent that the same are being contested in good
faith by appropriate proceedings and adequate reserves with respect thereto
shall, to the extent required by GAAP, have been set aside.

          SECTION 9.06. Litigation and Other Notices. Give the General
Administrative Agent written notice of the following within ten Business Days
after any executive officer of the Company obtains knowledge thereof:

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     (a) the filing or commencement of any action, suit or proceeding which the
Company reasonably expects to result in a Material Adverse Effect;

     (b) any Event of Default or Default, specifying the nature and extent
thereof and the action (if any) which is proposed to be taken with respect
thereto; and

     (c) any change in any of the Ratings.

provided, that in each case the Company shall not be required to provide
separate notice of any event disclosed in any report promptly filed with the
SEC if the Company has provided notice to the General Administrative Agent in
accordance with the last paragraph of Section 9.03 as long as the Company has
provided notice reasonably identifying where the applicable disclosure may be
obtained to the General Administrative Agent that such information has been
posted.

           SECTION 9.07. Books and Records. (a) Keep proper books of record and
account in which full, true and correct entries are made of all material
dealings and transactions in relation to its business and activities and (b)
permit any representatives designated by the General Administrative Agent or
any Lender, upon reasonable prior notice, to visit and inspect its properties,
to examine and make extracts from its books and records, and to discuss its
affairs, finances and condition with its officers and (in the presence of
officers of a Credit Party, whether by phone or in person) its independent
accountants (in each case subject to the Company’s obligations under applicable
confidentiality provisions), all at such reasonable times and as often as
reasonably requested, all at the expense of the applicable Lenders; provided
that during the continuation of any Default (x) any expense of the Lenders in
connection with the foregoing shall be for the account of the Company and (y)
Lenders shall be permitted to discuss the affairs, finances and condition of
the Company and its Subsidiaries without officers of the Credit Parties being
present.

           SECTION 9.08. Subsidiary Guarantor. (i) Cause each subsidiary guarantor
under the Existing Credit Agreement to execute and deliver a counterpart to
this Agreement thereby reaffirming its obligations as a Subsidiary Guarantor
under Section 13.16 on the Restatement Date and (ii) cause any subsequently
acquired or organized Domestic Wholly Owned Subsidiary (other than a special
purpose subsidiary organized to facilitate a Permitted Receivables
Securitization or an Inactive Subsidiary) or any Domestic Wholly Owned
Subsidiary that ceases to be an Inactive Subsidiary to execute and deliver a
counterpart to this Agreement thereby assuming the obligations of a Subsidiary
Guarantor under Section 13.16 within 15 Business Days of such Person becoming
such a Domestic Wholly Owned Subsidiary.

           SECTION 9.09. Use of Proceeds. All proceeds of the Loans shall be used
for general corporate purposes, including acquisitions that are not prohibited
by the terms of this Agreement.

ARTICLE X

Negative Covenants

          The Company covenants and agrees with each Lender and each Administrative
Agent that so long as this Agreement shall remain in effect or the principal of
or interest on any

60

 

Loan, any fees or any other amounts payable hereunder shall be unpaid or any
Letter of Credit remains outstanding, unless the Required Lenders shall
otherwise consent in writing, it will not, and will not permit any of the
Subsidiaries to, on and after the Restatement Date:

           SECTION 10.01. Consolidations, Mergers, and Sales of Assets. (a)
Consolidate or merge with or into any other Person or liquidate, wind up or
dissolve (or suffer any liquidation or dissolution) or (b) sell, or otherwise
transfer (in one transaction or a series of transactions), or permit any
Subsidiary to sell, or otherwise transfer (in one transaction or a series of
transactions), all or substantially all of the assets of the Company and the
Subsidiaries, taken as a whole, to any other Person; provided that (i) the
Company may merge or consolidate with another Person if the Company is the
corporation surviving such merger or consolidation, (ii) a Subsidiary may merge
or consolidate with another Person if (A) the Company is the surviving
corporation if the Company is a party to such merger or consolidation or (B)
the survivor of such merger or consolidation (in the event that it is not the
Subsidiary) shall assume all of the payment and performance obligations of such
Subsidiary on terms reasonably satisfactory to the General Administrative Agent
and (iii) immediately after giving effect to any such merger or consolidation,
no Default or Event of Default shall have occurred and be continuing; provided,
however, that the foregoing restrictions of this Section 10.01 shall not apply
to transactions permitted under Section 10.06 or 10.08.

           SECTION 10.02. Liens. Create, assume or suffer to exist any Lien upon any
property, except that the foregoing shall not prevent the Company or any
Subsidiary from creating, assuming or suffering to exist any of the following
Liens:

           (a) Liens existing on the Restatement Date and set forth on Schedule 10.02
hereof;

           (b) any Lien existing on property owned or leased by any Person at the
time it becomes a Subsidiary, provided that such Lien was not created in
anticipation of such person becoming a Subsidiary;

           (c) any Lien existing on property at the time of the acquisition thereof
by the Company or any Subsidiary provided that such Lien was not created in
anticipation of such acquisition;

           (d) Liens on property acquired, constructed or improved by the Company or
any Subsidiary; provided that the Debt secured thereby does not exceed 80% of
the cost of acquiring, constructing or improving such property and such Liens
do not apply to any other property of the Company or any Subsidiary;

           (e) Liens on receivables and the proceeds thereof securing any Permitted
Receivables Securitization;

           (f) any Liens securing Debt of the Company owing to a Subsidiary or a
Subsidiary owing to the Company or to another Subsidiary;

           (g) Liens for taxes, assessments or governmental charges or levies not yet
due or that are being contested in good faith by appropriate proceedings;
provided that adequate

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reserves with respect thereto are maintained on the books of the Company or its
Subsidiaries, as the case may be, in conformity with GAAP;

           (h) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or
other like Liens arising in the ordinary course of business that are not more
than 60 days delinquent in accordance with their terms or that are being
contested in good faith by appropriate proceedings;

           (i) pledges or deposits in connection with workers’ compensation,
unemployment insurance and other social security legislation and deposits
securing liability to insurance carriers under insurance or self-insurance
arrangements;

           (j) deposits to secure the performance of bids, trade contracts (other
than for borrowed money), leases, statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature incurred in the
ordinary course of business;

           (k) easements, rights-of-way, restrictions, licenses, reservations,
utility easements and other similar encumbrances imposed by law or incurred in
the ordinary course of business that, do not materially detract from the value
of the property subject thereto or materially interfere with the ordinary
conduct of the business of the Company and its Subsidiaries, considered as a
whole;

           (l) any interest or title of a lessor under any lease entered into by the
Company or any Subsidiary in the ordinary course of its business and covering
only the assets so leased;

           (m) attachment or judgment Liens in respect of judgments or decrees that
have been vacated, discharged or stayed within 30 days from the entry thereof;
and attachment or judgment Liens in respect of judgments or decrees that have
been bonded pending appeal within 30 days from the entry thereof and which do
not exceed $75,000,000 in the aggregate;

           (n) Liens arising from precautionary U.C.C. financing statement filings
with respect to operating leases or consignment arrangements entered into by
the Company or any Subsidiary in the ordinary course of business;

           (o) customary Liens in favor of a banking institution arising by operation
of law encumbering deposits (including the right of set-off) held by such
banking institutions incurred in the ordinary course of business and that are
within the general parameters customary in the banking industry;

           (p) any extension, renewal or replacement (or successive extensions,
renewals or replacements) in whole or in part of any Lien referred to in
clauses (a) through (o) above, so long as the principal amount of the Debt or
other obligations secured thereby does not exceed the principal amount of Debt
or obligations so secured at the time of such extension, renewal or replacement
(except that, where an additional principal amount of Debt is incurred to
provide funds for the completion of a specific project, the additional
principal amount, and any related financing costs, may be secured by the Lien
as well) and such Lien is limited to the same

62

 

property subject to the Lien so extended, renewed or replaced (and improvements
on such property); and

           (q) any Lien not permitted by clauses (a) through (p) above securing Debt
which, together with the aggregate outstanding principal amount of all other
Debt of the Company and its Subsidiaries which would otherwise be subject to
the foregoing restrictions and the aggregate Value of their existing Sale and
Leaseback Transactions which would be subject to the restrictions of Section
10.02 but for this clause (q), does not at any time exceed 5% of Consolidated
Net Tangible Assets.

           SECTION 10.03. Limitation on Sale and Leaseback Transactions. Enter into
any Sale and Leaseback Transaction, or permit any Subsidiary to do so, unless
the Company or such Subsidiary would be entitled to incur Debt, in a principal
amount equal to the Value of such Sale and Leaseback Transaction, which is
secured by Liens on the property to be leased without violating Section 10.02.

           SECTION 10.04. Financial Condition Covenants.

           (a) Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio
as at the last day of any period of four consecutive fiscal quarters of the
Company to exceed 3.0 to 1.0.

           (b) Consolidated Interest Coverage Ratio. Permit the Consolidated
Interest Coverage Ratio as at the last day of any period of four consecutive
fiscal quarters of the Company to be less than 3.5 to 1.0.

           SECTION 10.05. Indebtedness. Permit Subsidiaries of the Company to
create, issue, incur, assume, become liable in respect of or suffer to exist
any Debt (other than Permitted Debt) in an aggregate principal amount exceeding
$125,000,000 outstanding at any time.

           SECTION 10.06. Transactions with Affiliates. Enter into any material
transaction, including any purchase, sale, lease or exchange of property, the
rendering of any service or the payment of any management, advisory or similar
fees, with any Affiliate, except any such transaction which is (a) otherwise
permitted under this Agreement, in the ordinary course of business of the
relevant Affiliate and upon fair and reasonable terms no less favorable to the
relevant Affiliate than it would obtain in a comparable arm’s length
transaction with a Person that is not an Affiliate, (b) entered into prior to
the Restatement Date or contemplated by any agreement identified on Schedule
10.06 hereof, (c) between or among the Company or any Subsidiary exclusively,
(d) any Restricted Payment permitted under Section 10.07, (e) any transactions
in connection with any Permitted Receivables Securitization or (f) any
arrangements with officers, directors, representatives or other employees of
the Company or any Subsidiary relating specifically to employment as such.

           SECTION 10.07. Restricted Payments. At any time that the Company does not
have an Investment Grade Standing, declare or pay any dividend (other than (i)
dividends payable solely in common stock of the Person making such dividend or
options, warrants or rights to purchase shares of such common stock or (ii)
dividends or
other distributions made pursuant to the Rights Agreement) on, or make any
payment on account of, or set apart assets for

63

 

a sinking or other analogous fund for, the purchase, redemption, defeasance,
retirement or other acquisition of, any capital stock of any Subsidiary,
whether now or hereafter outstanding, or make any other distribution in respect
thereof, either directly or indirectly, whether in cash or property or in
obligations of any Subsidiary (collectively, “Restricted Payments”), except
that any Subsidiary may make Restricted Payments to the Company and its other
equity holders, pro rata in accordance with their respective equity interests
in such Subsidiary.

           SECTION 10.08. Investments. At any time that the Company does not have an
Investment Grade Standing, make any advance, loan, extension of credit (by way
of guaranty or otherwise) or capital contribution to, or purchase any capital
stock, bonds, notes, debentures or other debt securities of, or any assets
constituting a business unit of, or make any other investment in, any Person
(all of the foregoing, “Investments”), except:

           (a) investments in Cash Equivalents;

           (b) extensions of trade credit in the ordinary course of business;

           (c) Loans and advances to employees of the Company or any Subsidiary in
the ordinary course of business (including for travel, entertainment and
relocation expenses) in an aggregate amount for such employees not to exceed
$10,000,000 at any one time outstanding;

           (d) Loans to employees of the Company or any Subsidiary solely for the
purpose of exercising options to purchase the common stock of the Company or
any Subsidiary;

           (e) intercompany Investments by the Company or any Subsidiary in the
Company or any Person that, prior to such investment, is a Guarantor, including
Guarantees by the Company of any Debt of any Subsidiary;

           (f) in addition to Investments otherwise expressly permitted by this
Section 10.08, Investments by the Company or any of its Subsidiaries in an
aggregate amount (valued at cost) at any time invested not to exceed the sum of
$250,000,000 plus any amount thereof financed with Company Stock or the
proceeds of the issuance of Company Stock;

           (g) Investments made or committed to be made when the Company has
Investment Grade Standing, together with any extensions, renewals or
replacements thereof (provided the aggregate amount of the Investment is not
increased); and

           (h) Loans and advances to vendors, distributors or agents in the ordinary
course of business in an aggregate amount not to exceed $20,000,000 at any one
time outstanding.

ARTICLE XI

Events of Default

           In case of the happening of any of the following events (each an “Event of
Default”):

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           (a) any representation or warranty made or deemed made in or in connection
with the execution and delivery of this Agreement or the Borrowings hereunder
or under any Borrowing Subsidiary Agreement shall prove to have been false or
misleading in any material respect when so made, deemed made or furnished;

           (b) default shall be made in the payment of any principal of any Loan or
LC Disbursement when and as the same shall become due and payable, whether at
the due date thereof or at a date fixed for prepayment thereof or by
acceleration thereof or otherwise;

           (c) default shall be made in the payment of any interest on any Loan or
any fee or any other amount (other than an amount referred to in paragraph (b)
above) due hereunder, when and as the same shall become due and payable, and
such default shall continue unremedied for a period of five Business Days;

           (d) default shall be made in the due observance or performance of any
covenant, condition or agreement contained in Section 9.06 or Article X;

           (e) default shall be made in the due observance or performance of any
covenant, condition or agreement contained herein (other than those specified
in (b), (c) or (d) above) or in any other Loan Document and such default shall
continue unremedied for a period of 30 days after notice thereof from any
Administrative Agent or any Lender to the Company;

           (f) the Company or any Subsidiary shall (i) fail to pay any principal or
interest, regardless of amount, due in respect of one or more items of Debt in
an aggregate principal amount greater than or equal to $75,000,000, when and as
the same shall become due and payable (giving effect to any applicable grace
period) or (ii) fail to observe or perform any other term, covenant, condition
or agreement contained in any agreement or instrument evidencing or governing
any such Debt if the effect of any failure referred to in this clause (ii) is
to cause such Debt to become due prior to its stated maturity;

           (g) an involuntary proceeding shall be commenced or an involuntary
petition shall be filed in a court of competent jurisdiction seeking (i) relief
in respect of the Company or any Subsidiary, or of a substantial part of the
property or assets of the Company or any Subsidiary, under Title 11 of the
United States Code, as now constituted or hereafter amended, or any other
Federal, state or foreign bankruptcy, insolvency, receivership or similar law,
(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 the property or assets of the Company or any Subsidiary or
(iii) the winding up or liquidation of the Company or any Subsidiary; and 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;

           (h) the Company or any Subsidiary shall (i) voluntarily commence any
proceeding or file any petition seeking relief under Title 11 of the United
States Code, as now constituted or hereafter amended, or any other Federal,
state or foreign bankruptcy, insolvency, receivership or similar law, (ii)
consent to the institution of, or fail to contest
in a timely and appropriate manner, any proceeding or the filing of any
petition described in (g) above, (iii) apply for or consent to the appointment
of a receiver, trustee, custodian, sequestrator,

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conservator or similar official for the Company or any Subsidiary or for a
substantial part of the property or assets of the Company or any Subsidiary,
(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, (vi) become unable, admit in writing its inability or
fail generally to pay its debts as they become due or (vii) take any action for
the purpose of effecting any of the foregoing;

           (i) one or more judgments for the payment of money in an aggregate amount
equal to or greater than $75,000,000 (exclusive of any amount thereof
reasonably expected to be covered by insurance) shall be rendered against the
Company, any Subsidiary or any combination thereof and the same shall remain
undischarged for a period of 30 consecutive days during which execution shall
not be effectively stayed, or any action shall be legally taken by a judgment
creditor (whose liquidated judgment, along with those of any other judgment
creditors, exceeds $75,000,000) to levy upon assets or properties of the
Company or any Subsidiary to enforce any such judgment;

           (j) (i) a Plan of any Borrower shall fail to maintain the minimum funding
standard required by Section 412 of the Code for any plan year or a waiver of
such standard is sought or granted under Section 412(d) or (ii) an ERISA
Termination Event shall have occurred with respect to any Borrower or an ERISA
Affiliate has incurred, or in the reasonable opinion of the Required Lenders is
reasonably likely to incur, a liability to or on account of a Plan under
Section 4062, 4063, 4064, 4201 or 4204 of ERISA or (iii) any Person shall
engage in any prohibited transaction described in Sections 406 of ERISA or 4975
of the Code for which a statutory or class exemption is not available or a
private exemption has not been previously obtained from the United States
Department of Labor or (iv) any Borrower or any ERISA Affiliate shall fail to
pay any required installment or any other payment required to be paid by such
entity under Section 412 of the Code on or before the due date for such
installment or other payment (taking into account any extensions granted) or
(v) any Borrower or any ERISA Affiliate shall fail to make any contribution or
payment to any Multiemployer Plan (as defined in Section 4001(a)(3) of ERISA)
which any Borrower or any ERISA Affiliate is required to make under any
agreement relating to such Multiemployer Plan or any law pertaining thereto
(taking into account any extensions granted), and, in the event of the
occurrence of any of the events described in clauses (i) through (v) above,
there shall result from any such event or events either a liability or a
material risk of incurring a liability which is reasonably expected to have a
Material Adverse Effect;

           (k) a Change in Control shall occur; or the Company shall cease to own
beneficially all of the then outstanding capital stock (or equivalent equity
interests) of each of the Japanese Borrower and the European Borrowers; or

           (l) the guarantee in Section 13.16 shall cease to be, or shall be asserted
by any Credit Party not to be, a valid and binding obligation on the part of
any Guarantor;

then, and in every such event (other than an event with respect to any Borrower
described in paragraph (g) or (h) above), and at any time thereafter during the
continuance of such event, the General Administrative Agent, at the request of
the Required Lenders, shall, by
notice to the Company or any other Borrower (which notice to any other Borrower
may be given to the

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Company), take either or both of the following actions, at the same or
different times: (i) terminate forthwith the Commitments and (ii) declare the
Loans then outstanding to be forthwith due and payable in whole or in part,
whereupon the principal of the Loans so declared to be due and payable,
together with accrued interest thereon and any unpaid accrued fees and all
other liabilities of the Borrowers accrued hereunder (including all amounts of
LC Exposure, whether or not the beneficiary of the then outstanding Letters of
Credit shall have presented the documents required therein), shall become
forthwith due and payable, without presentment, demand, protest or any other
notice of any kind, all of which are hereby expressly waived anything contained
herein to the contrary notwithstanding; and, in any event with respect to any
Borrower described in paragraph (g) or (h) above, the Commitments shall
automatically terminate and the principal of the Loans then outstanding,
together with accrued interest thereon and any unpaid accrued fees and all
other liabilities of the Borrowers accrued hereunder (including all amounts of
LC Exposure, whether or not the beneficiary of the then outstanding Letters of
Credit shall have presented the documents required therein) shall automatically
become due and payable, without presentment, demand, protest or any other
notice of any kind, all of which are hereby expressly waived anything contained
herein to the contrary notwithstanding. With respect to all Letters of Credit
with respect to which presentment for honor shall not have occurred at the time
of an acceleration pursuant to this paragraph, the U.S. Borrower shall at such
time deposit in a cash collateral account opened by the General Administrative
Agent an amount equal to the aggregate then undrawn and unexpired amount of
such Letters of Credit. Amounts held in such cash collateral account shall be
applied by the General Administrative Agent to the payment of drafts drawn
under such Letters of Credit, and the unused portion thereof after all such
Letters of Credit shall have expired or been fully drawn upon, if any, shall be
applied to repay other obligations of the U.S. Borrower hereunder and under the
other Loan Documents. The General Administrative Agent shall have exclusive
dominion and control, including the exclusive right of withdrawal, over such
account. Other than any interest earned on the investment of such deposits,
which investments shall be made at the option and sole discretion of the
General Administrative Agent and at the U.S. Borrower risk and expense, such
deposits shall not bear interest. Interest or profits, if any, on such
investments shall accumulate in such account. After all such Letters of Credit
shall have expired or been fully drawn upon, all reimbursement obligations
shall have been satisfied and all other obligations of the U.S. Borrower
hereunder and under the other Loan Documents shall have been paid in full, the
balance, if any, in such cash collateral account shall be returned to the U.S.
Borrower (or such other Person as may be lawfully entitled thereto).

ARTICLE XII

The Administrative Agents

           In order to expedite the transactions contemplated by this Agreement,
JPMCB is hereby appointed to act as the General Administrative Agent on behalf
of the U.S. Lenders, JPMorgan Chase Bank, Tokyo Branch is hereby appointed to
act as Japanese Administrative Agent on behalf of the Japanese Lenders, J.P.
Morgan Europe Limited is hereby appointed to act as European Administrative
Agent on behalf of the
Multicurrency Lenders and JPMCB is hereby appointed to act as Advance
Agent on behalf of the Lenders. Each of the Lenders hereby irrevocably
authorizes each Administrative Agent (which term, for purposes of this Article
XII shall be deemed to include the Advance Agent) to take such actions on
behalf of such Lender or

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holder and to exercise such powers as are specifically delegated to the
Administrative Agents or an Administrative Agent individually, as the case may
be, by the terms and provisions hereof, together with such actions and powers
as are reasonably incidental thereto. Each Administrative Agent is hereby
expressly authorized by the Lenders, without hereby limiting any implied
authority, (a) to receive on behalf of the Lenders all payments of principal of
and interest on the Loans, payments in respect of the Letters of Credit and all
other amounts due to the Lenders hereunder, and promptly to distribute to each
Lender its proper share of each payment so received; (b) to give notice on
behalf of each of the Lenders to the Credit Parties of any Event of Default of
which such Administrative Agent has actual knowledge acquired in connection
with its agency hereunder; and (c) to distribute to each Lender copies of all
notices, financial statements and other materials delivered by any Credit Party
pursuant to this Agreement as received by such Administrative Agent.

           Neither the Administrative Agents nor any of their respective directors,
officers, employees or agents shall be liable as such for any action taken or
omitted by any of them except for its or his or her own gross negligence or
wilful misconduct, or be responsible for any statement, warranty or
representation herein or the contents of any document delivered in connection
herewith, or be required to ascertain or to make any inquiry concerning the
performance or observance by any Borrower of any of the terms, conditions,
covenants or agreements contained in this Agreement. The Administrative Agents
shall not be responsible to the Lenders for the due execution, genuineness,
validity, enforceability or effectiveness of this Agreement or other
instruments or agreements. The Administrative Agents may deem and treat the
Lender which makes any Loan or issues or participates in any Letter of Credit
as the holder of the indebtedness resulting therefrom for all purposes hereof
until it shall have received notice from such Lender, given as provided herein,
of the transfer thereof. The Administrative Agents shall in all cases be fully
protected in acting, or refraining from acting, in accordance with written
instructions signed by the Required Lenders and, except as otherwise
specifically provided herein, such instructions and any action or inaction
pursuant thereto shall be binding on all the Lenders. The Administrative
Agents shall, in the absence of knowledge to the contrary, be entitled to rely
on any instrument or document believed by it in good faith to be genuine and
correct and to have been signed or sent by the proper Person or Persons.
Neither the Administrative Agents nor any of their respective directors,
officers, employees or agents shall have any responsibility to any Borrower on
account of the failure of or delay in performance or breach by any Lender of
any of its obligations hereunder or to any Lender on account of the failure of
or delay in performance or breach by any other Lender or any Borrower of any of
their respective obligations hereunder or in connection herewith. The
Administrative Agents may execute any and all duties hereunder by or through
their Affiliates, agents or employees and shall be entitled to rely upon the
advice of legal counsel selected by them with due care with respect to all
matters arising hereunder and shall not be liable for any action taken or
suffered in good faith by them in accordance with the advice of such counsel.

           The Lenders hereby acknowledge that the Administrative Agents shall be
under no duty to take any discretionary action permitted to be taken by them
pursuant to
the provisions of this Agreement unless they shall be requested in writing
to do so by the Required Lenders.

           Subject to the appointment and acceptance of a successor Administrative
Agent as provided below, any Administrative Agent may resign at any time by
notifying the Lenders, the

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other Administrative Agents and the Company. Upon any such resignation of an
Administrative Agent, the Required Lenders shall have the right to appoint a
successor Administrative Agent acceptable to the Company. If no successor
shall have been so appointed by the Required Lenders and shall have accepted
such appointment within 30 days after the retiring Administrative Agent gives
notice of its resignation, then the retiring Administrative Agent may, on
behalf of the Lenders, appoint a successor Administrative Agent which shall be
a bank having a combined capital and surplus of at least $500,000,000 (or any
Affiliate of such bank), (i) with, in the case of the U.S. Commitments, an
office in New York, New York, (ii) with, in the case of the Japanese
Commitments, an office in Tokyo, Japan, or (iii) with, in the case of the
Multicurrency Commitments, an office in London. Upon the acceptance of any
appointment as Administrative Agent hereunder by a successor bank, such
successor shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Administrative Agent and the retiring
Administrative Agent shall be discharged from its duties and obligations
hereunder. After any Administrative Agent’s resignation hereunder, the
provisions of this Article XII and Section 13.05 shall continue in effect for
its benefit in respect of any actions taken or omitted to be taken by it while
it was acting as Administrative Agent.

           With respect to the Loans made by, or Letters of Credit issued by or
participated in by, them hereunder, each Administrative Agent in its individual
capacity and not as Administrative Agent shall have the same rights and powers
as any other Lender and may exercise the same as though it were not an
Administrative Agent, and such Administrative Agent 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 Administrative Agent.

           Each Lender agrees (i) to reimburse the Administrative Agents, on demand,
in the amount of its pro rata share of any expenses incurred for the benefit of
the Lenders by the Administrative Agents, including counsel fees and
compensation of agents and employees paid for services rendered on behalf of
the Lenders, which shall not have been reimbursed by the Borrowers and (ii) to
indemnify and hold harmless the Administrative Agents and any of their
respective directors, officers, employees or agents, on demand, in the amount
of such pro rata share, from and against any and all liabilities, taxes,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever which may be imposed
on, incurred by or asserted against either of them in its capacity as an
Administrative Agent in any way relating to or arising out of this Agreement or
any action taken or omitted by either of them under this Agreement to the
extent the same shall not have been reimbursed by the Borrowers; provided that
no Lender shall be liable to any Administrative Agent for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from the gross negligence or
wilful misconduct of such Administrative Agent or any of its directors,
officers, employees or agents. For purposes hereof, a Lender’s “pro rata
share” shall be determined based upon its share of the sum of the aggregate
Revolving Credit Exposure, outstanding Term Loans and unused Commitments at the
time.

           Each Lender acknowledges that it has, independently and without reliance
upon any Administrative Agent or any other Lender and based on such documents
and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this

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Agreement. Each Lender also acknowledges that it will, independently and
without reliance upon any Administrative 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 or any related agreement or any document furnished
hereunder or thereunder.

ARTICLE XIII

Miscellaneous

           SECTION 13.01. Notices. Notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed or sent by telecopy, as follows:

     (i) if to the Company, to Zimmer Holdings, Inc., 345 Main Street,
Warsaw, IN 46581, Attention of Sam R. Leno, Executive Vice President,
Corporate Finance and Operations and Chief Financial Officer (Telecopy
No.: 574-372-4988);

     (ii) if to Zimmer, to Zimmer, Inc., 345 Main Street, Warsaw, IN
46581, Attention of Sam R. Leno, Executive Vice President, Corporate
Finance and Operations and Chief Financial Officer (Telecopy No.:
574-372-4988);

     (iii) if to the Japanese Borrower, to Zimmer K.K., 7F Shiroyama Mt.
Building, 1-17, Toranomon 4-Chome, Minato-ku, Tokyo, Japan 10S-0001,
Attention of Rob Pullan, Director, Finance & IM, (Telecopy No.:
81-3-6402-6620); with a copy to Zimmer Holdings, Inc., 345 Main Street,
Warsaw, IN 46581, Attention of Sam R. Leno, Executive Vice President,
Corporate Finance and Operations and Chief Financial Officer (Telecopy
No.: 574-372-4988);

     (iv) if to the English Borrower, to Zimmer Ltd., The Courtyard,
Lancaster Place, Southmarston Park, Swindon, Wiltshire SN3 4FP, Attention
of James Evenson, Director of Finance (Telecopy No.: 44-1793-584-563);
with a copy to Zimmer Holdings, Inc., 345 Main Street, Warsaw, IN 46581,
Attention of Sam R. Leno, Executive Vice President, Corporate Finance and
Operations and Chief Financial Officer (Telecopy No.: 574-372-4988);

     (v) If to the Swiss Borrower, to Centerpulse Ltd., Postfach 65, CH -
8404 Oberwinterhur, Switzerland, Attention of Heidi Jauch, Legal Counsel
(Telecopy No.: 41-52-262-7974); with a copy to Zimmer Holdings, Inc., 345
Main Street, Warsaw, IN 46581, Attention of Sam R. Leno, Executive Vice
President, Corporate Finance and Operations and Chief Financial Officer
(Telecopy No.: 574-372-4988);

     (vi) if to the General Administrative Agent, to JPMorgan Chase Bank,
1111 Fannin Street, Houston, Texas 77002, Attention of Jennifer Anyigbo,
Account Manager (Telecopy No.: 713-750-2782) (email:
jennifer.anyigbo@jpmorgan.com); with a copy of all documents to be
delivered pursuant to Section 9.03 to JPMorgan Chase, 270 Park Avenue,
15th Floor, New
York, New York 10017, Attention of Lyette Proctor, (Telecopy No.:
212-270-5135) and to JPMorgan Chase Bank, 270 Park Avenue,

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4th Floor, New York, New York, 10017, Attention of Dawn Lee Lum (Telecopy
No.: 212-270-5100);

     (vii) if to the European Administrative Agent, to J. P. Morgan
Europe Limited, 125 London Wall, London EC2Y 5AJ, Attention of Nichola
Hall (Telecopy No.: 44-207-777-2360);

     (viii) if to the Japanese Administrative Agent, to JPMorgan Chase
Bank, Tokyo Branch, 5-2-20, Akasaka, Minato-ku, Tokyo, Japan 107-6117,
Attention of Naoko Morimoto (Telecopy No.: 813-5570-7539);

     (ix) if to the Issuing Lender, to JPMorgan Chase Bank, JPMorgan
Treasury Services , 10420 Highland Manor Drive, Tampa, FL 33610,
Attention: Stephen Carew, Operations Manager (Telecopy No.:
813-432-5161), (email: stephen.m.carew@jpmorgan.com).

     (x) if to a Lender, to it at its address (or telecopy number) set
forth in Schedule 2.01 or in the Assignment and Acceptance pursuant to
which such Lender became a party hereto; and

     (xi) if to any other Borrowing Subsidiary, to it at the address (or
telecopy number) set forth above for the Company. Each Borrower (other
than the Company) hereby irrevocably appoints the Company as its agent
for the purpose of giving on its behalf any notice and taking any other
action provided for in this Agreement (whether or not this Agreement
expressly authorizes the Company to take any such action on behalf of
such Borrower) and hereby agrees that it shall be bound by any such
notice or action given or taken by the Company hereunder irrespective of
whether or not any such notice shall have in fact been authorized by such
Borrower and irrespective of whether or not the agency provided for
herein shall have theretofore been terminated.

           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 if delivered by hand or overnight courier service
or sent by telecopy to such party as provided in this Section or in accordance
with the latest unrevoked direction from such party given in accordance with
this Section.

           SECTION 13.02. Survival of Agreement. All covenants, agreements,
representations and warranties made by any Credit Party herein and in the
certificates or other instruments prepared or delivered in connection with or
pursuant to this Agreement shall be considered to have been relied upon by the
Lenders and shall survive the making by the Lenders of the Loans regardless of
any investigation made by the Lenders or on their behalf, 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 the Commitments have not been terminated.

           SECTION 13.03. Binding Effect. This Agreement shall become effective when
it shall have been executed by the Company, the European Borrowers, the
Japanese Borrower and the Administrative Agents and when the Administrative
Agents shall have received copies hereof

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(telecopied or otherwise) which, when taken together, bear the signatures of
the Restatement Required Lenders, and thereafter shall be binding upon and
inure to the benefit of the parties hereto and the Lenders and their respective
successors and assigns, except that no Borrower shall have the right to assign
any rights hereunder or any interest herein, except in accordance with Section
10.01, without the prior consent of all the Lenders.

           SECTION 13.04. Successors and Assigns. (a) Whenever in this Agreement
any of the parties is referred to, such reference shall be deemed to include
the successors and assigns of such party; and all covenants, promises and
agreements by or on behalf of any party that are contained in this Agreement
shall bind and inure to the benefit of its successors and assigns (including
any Affiliate of the Issuing Lender that issues any Letter of Credit).

           (b) Each Lender other than any Conduit Lender may assign to one or more
assignees all or a portion of its interests, rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans at the
time owing to it); provided, however, that, except in the case of an assignment
to another Lender, an Affiliate of a Lender or an Approved Fund, (i) each of
the Company (so long as no Event of Default shall have occurred and be
continuing) and the General Administrative Agent must give its prior written
consent to such assignment (which consent in each case shall not be
unreasonably withheld), (ii) the amount of the Commitments of the assigning
Lender subject to each such assignment (determined as of the date the
Assignment and Acceptance with respect to such assignment is delivered to the
General Administrative Agent) shall not be less than $5,000,000 unless it shall
be the entire amount of such Lender’s Commitments or Loans, as applicable and
(iii) an assignment by a Lender of any of its U.S. Revolving Commitments shall
include an assignment by such Lender of its proportionate interest in LC
Exposure. The parties to each assignment shall execute and deliver to the
General Administrative Agent an Assignment and Acceptance, and a processing and
recordation fee of $3,500; provided, however, that such processing and
recordation fee shall not be payable in the case of assignments made by or to
Arrangers or their Affiliates. Upon acceptance and recording pursuant to
paragraph (e) of this Section 13.04, from and after the effective date
specified in each Assignment and Acceptance, which effective date shall be at
least five Business Days after the execution thereof, (x) the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned
by such Assignment and Acceptance, have the rights and obligations of a Lender
under this Agreement and (y) the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Acceptance, be released
from its obligations under this Agreement (and, in the case of an Assignment
and Acceptance covering all or the remaining portion of an assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto (but shall (i) continue to be entitled to the benefits of Sections
6.10, 6.11, 6.12 and 13.05, as well as to any fees accrued for its account
hereunder and not yet paid and (ii) continue to be subject to the
confidentiality provisions hereof). Notwithstanding the foregoing, any Lender
assigning its rights and obligations under this Agreement may retain any
Competitive Loans made by it outstanding at such time, and in such case shall
retain its rights hereunder in respect of any Loans so retained until such
Loans have been repaid in full in accordance with this
Agreement. Notwithstanding the foregoing, any Conduit Lender may assign
at any time to its designating Lender hereunder without the consent of the
Company or the General Administrative Agent any or all of the Loans it may have
funded hereunder and pursuant to its designation agreement and without regard
to the limitations set forth in the first sentence of this Section 13.04(b).

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           For the purpose of this Section 13.04(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 (i) a Lender, (ii) an Affiliate of a Lender or (iii)
an entity or an Affiliate of an entity that administers or manages a Lender.

           (c) By executing and delivering an Assignment and Acceptance, the
assigning Lender thereunder and the assignee thereunder shall be deemed to
confirm to and agree with each other and the other parties hereto as follows:
(i) such assigning Lender warrants that it is the legal and beneficial owner of
the interest being assigned thereby free and clear of any adverse claim; (ii)
except as set forth in (i) above, such assigning Lender makes no representation
or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of this Agreement or any other instrument or document furnished pursuant
hereto or the financial condition of the Borrowers or the performance or
observance by the Borrowers of any obligations under this Agreement or any
other instrument or document furnished pursuant hereto; (iii) such assignee
represents and warrants that it is legally authorized to enter into such
Assignment and Acceptance; (iv) such assignee confirms that it has received a
copy of this Agreement, together with copies of the most recent financial
statements delivered pursuant to Section 9.03 and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into such Assignment and Acceptance; (v) such assignee will
independently and without reliance upon any Administrative Agent, such
assigning Lender 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 this Agreement; (vi) such
assignee appoints and authorizes the General Administrative Agent, the Japanese
Administrative Agent and the European Administrative Agent to take such action
as agent on its behalf and to exercise such powers under this Agreement as are
delegated to the Administrative Agents by the terms hereof, together with such
powers as are reasonably incidental thereto; and (vii) such assignee agrees
that it will perform in accordance with their terms all the obligations which
by the terms of this Agreement are required to be performed by it as a Lender.

           (d) Each of the Administrative Agents shall maintain at its office
referred to in Section 13.01 a copy of each Assignment and Acceptance delivered
to it and a register for the recordation of the names and addresses of the
Lenders, and the Commitments of, and the principal amount of the Loans owing
to, each Lender pursuant to the terms hereof from time to time and any
promissory notes evidencing such Loans (the “Register”). The entries in the
Register shall be conclusive in the absence of manifest error and the Company,
the other Borrowers, the Administrative Agents 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. No assignment or transfer
of any Loan (or portion thereof) or any Note evidencing such Loan shall be
effected unless and until it has been recorded in the Register as provided in
this
subsection 13.04(d). Notwithstanding any other provision of this
Agreement, any assignment or transfer of all or part of a promissory note shall
be registered on the Register

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only upon surrender for registration of assignment or transfer of the
promissory note (and each promissory note shall expressly so provide),
accompanied by a duly executed Assignment and Acceptance, and thereupon one or
more new promissory notes in the same aggregate principal amount shall be
issued to the designated Assignee and the old promissory notes shall be
returned by the applicable Administrative Agent to the Company marked
“cancelled”. The Register shall be available for inspection by each party
hereto, at any reasonable time and from time to time upon reasonable prior
notice.

           (e) Upon its receipt of a duly completed Assignment and Acceptance
executed by an assigning Lender and an assignee together with an Administrative
Questionnaire completed in respect of the assignee (unless the assignee shall
already be a Lender hereunder), the processing and recordation fee referred to
in paragraph (b) above, if applicable, and, if required, the written consent of
the Company to such assignment, the relevant Administrative Agent shall (i)
accept such Assignment and Acceptance and (ii) record the information contained
therein in the Register.

           (f) Each Lender other than any Conduit Lender may sell participations to
one or more banks or other entities in all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitments
and the Loans owing to it); provided, however, that (i) such Lender’s
obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto or thereto for the
performance of such obligations, (iii) each participating bank or other entity
shall be entitled to the benefit of the cost protection provisions contained in
Sections 6.10, 6.11 and 6.12 to the same extent as if it was the selling Lender
(and limited to the amount that could have been claimed by the selling Lender
had it continued to hold the interest of such participating bank or other
entity, it being further agreed that the selling Lender will not be permitted
to make claims against the Borrowers under Section 6.10(b) for costs or
reductions resulting from the sale of a participation), except that all claims
made pursuant to such Sections shall be made through such selling Lender and
(iv) the Borrowers, the Administrative Agents and the other Lenders shall
continue to deal solely and directly with such selling Lender in connection
with such Lender’s rights and obligations under this Agreement, and such Lender
shall retain the sole right to enforce the obligations of the Borrowers
relating to the Loans and to approve any amendment, modification or waiver of
any provision of this Agreement (other than amendments, modifications or
waivers decreasing any fees payable hereunder or thereunder or the amount of
principal of or the rate at which interest is payable on the Loans, extending
the final scheduled maturity of the Loans or any date scheduled for the payment
of interest on the Loans, extending the Commitments or releasing any Guarantor
from its obligations hereunder).

           (g) Any Lender or participant may, in connection with any assignment or
participation or proposed assignment or participation pursuant to this Section
13.04, disclose to the assignee or participant or proposed assignee or
participant any information relating to the Company or the other Borrowers
furnished to such Lender; provided that, prior to any such disclosure, each
such assignee or participant or proposed assignee or participant shall be
subject to the confidentiality provisions contained herein.

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           (h) The Borrowers shall not assign or delegate any rights and duties
hereunder, except in accordance with Section 10.01, without the prior written
consent of all Lenders.

           (i) Any Lender may at any time pledge or otherwise assign all or any
portion of its rights under this Agreement to a Federal Reserve Bank; provided
that no such pledge shall release any Lender from its obligations hereunder.
In order to facilitate such an assignment to a Federal Reserve Bank, the
relevant Borrower shall, at the request of the assigning Lender, duly execute
and deliver to the assigning Lender a promissory note or notes evidencing the
Loans made by the assigning Lender hereunder.

           (j) Each party hereto hereby confirms that it will not institute against a
Conduit Lender or join any other Person in instituting against a Conduit Lender
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceeding under any state bankruptcy or similar law, for one year and one day
after the payment in full of the latest maturing commercial paper note issued
by such Conduit Lender; provided, however, that each Lender designating any
Conduit Lender hereby agrees to indemnify, save and hold harmless each other
party hereto for any loss, cost, damage or expense arising out of its inability
to institute such a proceeding against such Conduit Lender during such period
of forbearance.

           SECTION 13.05. Expenses, Indemnity. (a) The Company agrees to pay all
reasonable out-of-pocket expenses incurred by the Administrative Agents and the
Arrangers in connection with entering into this Agreement or in connection with
any amendments, modifications or waivers of the provisions hereof or thereof
(including the reasonable fees, disbursements and other charges of a single
counsel), or incurred by the Administrative Agents, the Arrangers or any Lender
in connection with the enforcement of their rights in connection with this
Agreement or in connection with the Loans made hereunder or thereunder,
including the fees and disbursements of counsel for the Administrative Agents
and the Arrangers and, in the case of enforcement, each Lender.

           (b) The Company agrees to indemnify each Administrative Agent, the
Arrangers, each Lender, each of their Affiliates and the directors, officers,
employees and agents of the foregoing (each such Person being called an
“Indemnitee”) against, and to hold each Indemnitee harmless from, any and all
losses, claims, damages, liabilities and related expenses, including reasonable
counsel fees, incurred by or asserted against any Indemnitee arising out of (i)
the consummation of the transactions contemplated by this Agreement, (ii) the
use of the proceeds of the Loans or (iii) any claim, litigation, investigation
or proceeding relating to any of the foregoing, whether or not any Indemnitee
is a party thereto; provided that (x) such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses result from the gross negligence or wilful
misconduct of such Indemnitee and (y) such indemnity shall not apply to losses,
claims, damages, liabilities or relate expenses that result from disputes
solely between Lenders.

           (c) The provisions of this Section 13.05 shall remain operative and in
full force and effect regardless of the expiration of the term of this
Agreement, the consummation of the transactions contemplated hereby, the
repayment of any of the
Loans, the invalidity or unenforceability of any term or provision of this
Agreement or any investigation made by or on

75

 

behalf of the Administrative Agents, the Syndication Agent or any Lender. All
amounts due under this Section 13.05 shall be payable on written demand
therefor.

           SECTION 13.06. Applicable Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

           SECTION 13.07. Waivers, Amendment. (a) No failure or delay of any
Administrative Agent or any Lender in exercising any power or right hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right or power, or any abandonment or discontinuance of steps to
enforce such a right or power, preclude any other or further exercise thereof
or the exercise of any other right or power. The rights and remedies of the
Administrative Agents and the Lenders hereunder are cumulative and are not
exclusive of any rights or remedies which they would otherwise have. No waiver
of any provision of this Agreement or consent to any departure therefrom shall
in any event be effective unless the same shall be permitted by paragraph (b)
below, and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. No notice or demand on the
Company or any other Borrower in any case shall entitle such party to any other
or further notice or demand in similar or other circumstances.

           (b) Neither this Agreement nor any provision hereof may be waived, amended
or modified except pursuant to an agreement or agreements in writing entered
into by the Borrowers and the Required Lenders; provided, however, that no such
agreement shall (i) decrease the principal amount of, or extend the maturity of
or any scheduled principal payment date or date for the payment of any interest
on any Loan or reimbursement obligation with respect to an LC Disbursement, or
waive or excuse any such payment or any part thereof, or decrease the rate of
interest on any Loan, or amend or modify Section 13.16, without the prior
written consent of each Lender directly affected thereby, (ii) increase the
Commitments or decrease or extend the date for payment of the facility fees or
fees in respect of Letters of Credit of any Lender (with the exception of
fronting fees payable to the Issuing Lender, which shall require the consent of
the Issuing Lender) without the prior written consent of such Lender, (iii)
amend or modify the provisions of Section 6.13 or Section 13.04(h), the
provisions of this Section 13.07 or the definition of the “Required Lenders”,
or release any Guarantor from its obligations under Section 13.16 hereof except
for the release of a Subsidiary Guarantor in connection with the consummation
of a transaction permitted under Section 10.01, without the prior written
consent of each Lender, (iv) change the provisions of any Loan Document in a
manner that by its terms adversely affects the rights in respect of payments
due to Lenders holding Loans of one Class differently from the rights of
Lenders holding Loans of any other class without the prior written consent of
Lenders holding a majority in interest of the outstanding Loans and unused
Commitments of each adversely affected Class or (v) change the requirement that
disbursements made by any Lender be made ratably with respect to its applicable
Commitment without the prior written consent of each Lender directly affected
thereby; provided further, however, that no such agreement shall amend, modify
or otherwise affect the rights or duties of (w) any Administrative Agent
hereunder without the prior written consent of such Administrative Agent, (x)
any Issuing Lender without the prior written consent of such Issuing Lender,
(y) the Swingline Lender without the prior written consent of the
Swingline Lender or (z) an Arranger under Section 13.04(b) without the prior
written consent of

76

 

such Arranger. Each Lender shall be bound by any waiver, amendment or
modification authorized by this Section 13.07 and any consent by any Lender
pursuant to this Section 13.07 shall bind any assignee of its rights and
interests hereunder.

           SECTION 13.08. Entire Agreement. This Agreement and the Letter Agreement
constitute the entire contract among the parties relative to the subject matter
hereof. Any previous agreement among the parties with respect to the subject
matter hereof is superseded by this Agreement. Nothing in this Agreement,
expressed or implied, is intended to confer upon any party other than the
parties hereto any rights, remedies, obligations or liabilities under or by
reason of this Agreement.

           SECTION 13.09. Severability. In the event any one or more of the
provisions contained in this Agreement should be held invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not in any way be affected or
impaired thereby. The parties shall endeavor in good-faith negotiations to
replace the invalid, illegal or unenforceable provisions with valid provisions
the economic effect of which comes as close as possible to that of the invalid,
illegal or unenforceable provisions.

           SECTION 13.10. Counterparts. This Agreement may be executed in two or
more counterparts, each of which shall constitute an original but all of which
when taken together shall constitute but one contract, and shall become
effective as provided in Section 13.03.

           SECTION 13.11. 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 are not to affect the construction of, or to be taken into
consideration in interpreting, this Agreement.

           SECTION 13.12. Right of Setoff. If an Event of Default shall have
occurred and be continuing, each Lender 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 indebtedness at any time owing by such Lender to or
for the credit or obligations of each Credit Party 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. Each Lender agrees promptly to notify the
Company after such setoff and application made by such Lender, but the failure
to give such notice shall not affect the validity of such setoff and
application. The rights of each Lender under this Section 13.12 are in
addition to other rights and remedies (including, without limitation, other
rights of setoff) which such Lender may have.

           SECTION 13.13. Jurisdiction: Consent to Service of Process. (a) Each
party hereto hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any New York State court or
Federal court of the United States of America sitting in New York City, and any
appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement, 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

77

 

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. Subject to the foregoing and to
paragraph (b) below, nothing in this Agreement shall affect any right that any
party hereto may otherwise have to bring any action or proceeding relating to
this Agreement against any other party hereto in the courts of any
jurisdiction.

           (b) Each of the parties hereto hereby irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection which it may now or thereafter have to the laying of venue of any
suit, action or proceeding arising out of or relating to this Agreement in any
New York State or Federal court. 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.

           (c) Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 13.01. Nothing in this
Agreement will affect the right of any party to this Agreement to serve process
in any other manner permitted by law.

           (d) Each Borrower hereby irrevocably appoints the Company as its agent for
the service of process in any action referred to in Section 13.13(a) and agrees
that service of process in any such proceeding may be made by mailing or
delivering a copy thereof to it care of the Company at its address for notice
set forth in Section 13.01.

           (e) Each Credit Party waives, to the maximum extent not prohibited by law,
any right it may have to claim or recover in any legal action or proceeding
referred to in this Section for any special, exemplary, punitive or
consequential damages.

           SECTION 13.14. 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 respect of any litigation directly or indirectly arising out
of, under or in connection with this Agreement. 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 other parties hereto have been induced to enter into this Agreement
by, among other things, the mutual waivers and certification in this Section
13.14.

           SECTION 13.15. Conversion of Currencies. (a) If, for the purpose of
obtaining judgment in any court, it is necessary to convert a sum owing
hereunder in one currency into another currency, each party hereto agrees, to
the fullest extent that it may effectively do so, that the rate of exchange
used shall be that at which in accordance with normal banking procedures in the
relevant jurisdiction the first currency could be purchased with such other
currency on the Business Day immediately preceding the day on which final
judgment is given.

           (b) The obligations of each Borrower in respect of any sum due to any
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

78

 

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, such Borrower agrees, as a
separate obligation and notwithstanding any such judgment, to indemnify the
Applicable Creditor against such loss. The obligations of the Borrowers
contained in this Section 13.15 shall survive the termination of this Agreement
and the payment of all other amounts owing hereunder.

           SECTION 13.16. Guaranty. In order to induce the Lenders to make Loans to
the Company and the other Borrowers, each Guarantor hereby unconditionally and
irrevocably guarantees as a primary obligor the Borrower Obligations of all the
Borrowers. Each Guarantor further agrees that the Borrower Obligations may be
extended and renewed, in whole or in part, without notice to or further assent
from it, and that it will remain bound upon its agreement hereunder
notwithstanding any extension or renewal of any Borrower Obligation.

           Each Guarantor waives promptness, diligence, presentment to, demand of
payment from and protest to the Borrowers of any Borrower Obligations, and also
waives notice of acceptance of its obligations and notice of protest for
nonpayment. The obligations of each Guarantor hereunder shall be absolute and
unconditional and not be affected by, and each Guarantor waives any defense it
may now or hereafter have arising out of (a) the failure of any Lender or the
Administrative Agents to assert any claim or demand or to enforce any right or
remedy against any Borrower under the provisions of this Agreement or any of
the other Loan Documents or otherwise; (b) any rescission, waiver, amendment or
modification of any of the terms or provisions of this Agreement, any other
Loan Documents or any other agreement; (c) the failure of any Lender to
exercise any right or remedy against any Borrower; (d) the invalidity or
unenforceability of any Loan Document; (e) the validity, legality or
enforceability of this Agreement or any Loan or Letter of Credit or any
document or instrument relating thereto or given in connection therewith; or
(f) any other circumstance which might otherwise constitute a defense available
to or discharge of a Borrower or a guarantor (other than indefeasible payment).

           Each Guarantor further agrees that its agreements hereunder constitutes a
promise of payment when due and not of collection, and waives any right to
require that any resort be had by any Lender to any balance of any deposit
account or credit on the books of any Lender in favor of any Borrower or any
other Person.

           The obligations of each Guarantor hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason, and shall not
be subject to any defense or setoff, counterclaim, recoupment or termination
whatsoever, by reason of the invalidity, illegality or unenforceability of the
Borrower Obligations or otherwise. Without limiting the generality of the
foregoing, the obligations of the Guarantors hereunder shall not be discharged
or impaired or otherwise affected by the failure of the Administrative Agents
or any Lender to assert any claim or demand or to enforce any remedy under this
Agreement or under any other Loan Document or any other agreement, by any
waiver or modification in respect of any thereof, by any default, failure or
delay,
wilful or otherwise, in the performance of the Borrower Obligations, or by
any other act or omission which may or might in any manner or to any extent

79

 

vary the risk of the Guarantors (or any of them) or otherwise operate as a
discharge of the Guarantors (or any of them) as a matter of law or equity.

           Each Guarantor further agrees that its obligations hereunder shall
continue to be effective or be reinstated, as the case may be, if at any time
payment, or any part thereof, of principal of or interest on any Borrower
Obligation is rescinded or must otherwise be restored by the Administrative
Agents or any Lender upon the bankruptcy or reorganization of any Borrower or
otherwise.

           In furtherance of the foregoing and not in limitation of any other right
which the Administrative Agents or any Lender may have at law or in equity
against the Guarantors (or any of them) by virtue hereof, upon the failure of
any Borrower to pay any Borrower Obligation when and as the same shall become
due, whether at maturity, by acceleration, after notice of prepayment or
otherwise, each Guarantor hereby promises to and will, upon receipt of written
demand by the General Administrative Agent, forthwith pay, or cause to be paid,
in cash the amount of such unpaid Borrower Obligation. In the event that, by
reason of the bankruptcy of any Borrower (i) acceleration of Loans made to such
Borrower is prevented and (ii) the Guarantors shall not have prepaid the
outstanding Loans and other amounts due hereunder owed by such Borrower, the
Guarantors will forthwith purchase such Loans and other amounts at a price
equal to the principal amount thereof plus accrued interest thereon and any
other amounts due hereunder with respect thereto. Each Guarantor further
agrees that if payment in respect of any Borrower Obligation shall be due in a
currency other than Dollars and/or at a place of payment other than New York
and if, by reason of any Change in Law, disruption of currency or foreign
exchange markets, war or civil disturbance or similar event, payment of such
Borrower Obligations in such currency or such place of payment shall be
impossible or, in the judgment of any applicable Lender, not consistent with
the protection of its rights or interests, then, at the election of any
applicable Lender, the Guarantors shall make payment of such Borrower
Obligation in Dollars (based upon the applicable Exchange Rate in effect on the
date of payment) and/or in New York, and shall indemnify such Lender against
any losses or expenses that it shall sustain as a result of such alternative
payment.

           Following indefeasible payment in full in cash of all Borrower Obligations
and the termination of the Commitments hereunder, upon payment by any Guarantor
of any Borrower Obligations, each Lender shall, in a reasonable manner, assign
the amount of such Borrower Obligations owed to it and paid by such Guarantor
pursuant to this guarantee to such Guarantor, such assignment to be pro tanto
to the extent to which the Borrower Obligations in question were discharged by
such Guarantor, or make such disposition thereof as such Guarantor shall direct
(all without recourse to any Lender and without any representation or warranty
by any Lender except with respect to the amount of the Borrower Obligations so
assigned).

           Each Subsidiary Guarantor hereby agrees that to the extent that a
Subsidiary Guarantor shall have paid more than its proportionate share of any
payment made hereunder, such Subsidiary Guarantor shall be entitled to seek and
receive contribution from and against any other Subsidiary Guarantor hereunder
which has not paid its proportionate share of such payment. Each Subsidiary
Guarantor’s right of
contribution shall be subject to the terms and conditions of the
immediately following paragraph. The provisions of this paragraph shall in no
respect limit the obligations and liabilities of any Subsidiary Guarantor to
the Administrative

80

 

Agents and the Lenders and each Subsidiary Guarantor shall remain liable to the
Administrative Agents and the Lenders for the full amount guaranteed by such
Subsidiary Guarantor hereunder.

           Upon payment by any Guarantor of any sums as provided above, all rights of
the Guarantors against any Borrower arising as a result thereof by way of right
of subrogation or otherwise shall in all respects be subordinated and junior in
right of payment to the prior indefeasible payment in full of all the Borrower
Obligations to the Lenders and termination of the Commitments.

           Anything herein or in any other Loan Document to the contrary
notwithstanding, the maximum liability of each Subsidiary Guarantor in its
capacity as a guarantor under this Section 13.16 shall in no event exceed the
amount which can be guaranteed by such Subsidiary Guarantor under applicable
federal and state laws relating to the insolvency of debtors (after giving
effect to the right of contribution established above).

           Each Guarantor agrees that the Borrower Obligations may at any time and
from time to time exceed the amount of the liability of such Guarantor
hereunder without impairing the guarantee contained in this Section 13.16 or
affecting the rights and remedies of the Administrative Agent or any Lender
hereunder.

           SECTION 13.17. CAM Exchange. (a) On the CAM Exchange Date, to the extent
not prohibited by a Requirement of Law, all Loans outstanding in any currency
other than Dollars shall be converted to Dollars (calculated on the basis of
the relevant Exchange Rates as of the Business Day immediately preceding the
CAM Exchange Date) and shall be ABR Loans, and (ii) the Lenders shall
automatically and without further act be deemed to have exchanged interests in
the Classes (other than Competitive Loans) such that, in lieu of the interests
of each Lender in each Class in which it shall participate as of such date
(including such Lender’s interest in the Designated Obligations of each Credit
Party in respect of each such Class), such Lender shall hold an interest in
every one of the Classes (including the Designated Obligations of each Credit
Party in respect of each such Class but excluding Competitive Loans and
participations in undrawn Letters of Credit), whether or not such Lender shall
previously have participated therein, equal to such Lender’s CAM Percentage
thereof. Each Lender, the Company and each other Borrower hereby consents and
agrees to the CAM Exchange, and each Lender hereby agrees that the CAM Exchange
shall be binding upon its successors and assigns and any Person that acquires a
participation in its interests in any Class. The Company and each other
Borrower and each Lender agrees from time to time to execute and deliver to the
General Administrative Agent all such promissory notes and other instruments
and documents as the General Administrative Agent shall reasonably request to
evidence and confirm the respective interests and obligations of the Lenders
after giving effect to the CAM Exchange, and each Lender agrees to surrender
any promissory notes originally received by it in connection with its Loans
hereunder to the General Administrative Agent against delivery of any
promissory notes so executed and delivered; provided that the failure of the
Company or any other Borrower to execute or deliver or of any Lender to accept
any such promissory note, instrument or document shall not affect the validity
or effectiveness of the CAM Exchange. In the event that on the CAM Exchange
Date
any Swingline Loan shall be outstanding (other than any Swingline Loan in
respect of which U.S. Revolving Lenders have funded their purchase of
participations pursuant to Section 5.01), then each U.S. Revolving Lender
(determined immediately prior to the

81

 

CAM Exchange) shall, in accordance with the provisions of Section 5.01,
promptly purchase from the Swingline Lender a participation in such Swingline
Loan in the amount of such Lenders’ Applicable Percentage of such Swingline
Loan (determined immediately prior to the CAM Exchange).

           (b) As a result of the CAM Exchange, on and after the CAM Exchange Date,
(i) each payment received by an Administrative Agent pursuant to any Loan
Document in respect of the Designated Obligations shall be distributed to the
Lenders pro rata in accordance with their respective CAM Percentages (to be
redetermined as of each such date of payment or distribution to the extent
required by Section 13.18) and (ii) Sections 6.12(g), 6.12(h) and 6.12(i) shall
not apply with respect to any Taxes required to be withheld or deducted by a
Borrower from or in respect of payments hereunder to any Lender or the
Administrative Agent that exceed the Taxes such Borrower would have otherwise
been required to withhold or deduct from or in respect of payments to such
Lender or the Administrative Agent had such CAM Exchange not occurred;
provided, however, that this Section 13.17(b)(ii) shall not limit the
obligations set forth in Section 6.12(j) hereof.

           SECTION 13.18. Letters of Credit. In the event that, on or after the CAM
Exchange Date, the aggregate amount of the Designated Obligations shall change
as a result of the making of an LC Disbursement by the Issuing Lender that is
not reimbursed by a Credit Party, then (a) each U.S. Revolving Lender
(determined without giving effect to the CAM Exchange) shall, in accordance
with Section 4.01(d), promptly purchase from the Issuing Lender a participation
in such LC Disbursement in the amount of such Lender’s Applicable Percentage of
such LC Disbursement (without giving effect to the CAM Exchange) and (b) the
General Administrative Agent shall redetermine the CAM Percentages after giving
effect to such LC Disbursement and the purchase of participations therein by
the U.S. Revolving Lenders. Each such redetermination shall be binding on each
of the Lenders and their successors and assigns and shall be conclusive, absent
manifest error.

           SECTION 13.19. Confidentiality. Each of the Administrative Agents and the
Lenders expressly agrees, for the benefit of the Company and the Subsidiaries,
to maintain the confidentiality of the Confidential Information (as defined
below), except that Confidential 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 Confidential Information and instructed to keep such
Confidential Information confidential), (b) to the extent requested by any
regulatory authority, (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) to any other party
to this Agreement, (e) in connection with the exercise of any remedies
hereunder or any suit, action or proceeding relating to this Agreement or the
enforcement of rights hereunder, (f) subject to an express agreement for the
benefit of the Company and the Subsidiaries containing provisions substantially
the same as those of this Section, to any assignee of or participant in, or any
prospective assignee of or participant in, any of its rights or obligations
under this Agreement or to any direct or indirect counter party to a Hedge
Agreement, (g) with the consent of the Company and the Subsidiaries, (h) to the
National Association of Insurance
Commissioners or any similar organization or any nationally recognized
ratings agency, or (i) to the extent such Confidential Information (i) becomes
publicly available other than as a result of a breach of this

82

 

Section or (ii) becomes available to any Administrative Agent or any Lender on
a nonconfidential basis from a source other than the Company and the
Subsidiaries. For the purposes of this Section, “Confidential Information”
means all information, including material nonpublic information within the
meaning of Regulation FD promulgated by the SEC (“Regulation FD”), received
from the Company and the Subsidiaries relating to such entities or their
respective businesses, other than any such information that is available to any
Administrative Agent or any Lender on a nonconfidential basis prior to
disclosure by such entities; provided that, such information is clearly
identified at the time of delivery as confidential. Any Person required to
maintain the confidentiality of Confidential 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 customarily accords to its
own confidential information; provided, however, that with respect to
disclosures pursuant to clauses (b) and (c) of this Section, unless prohibited
by law or applicable court order, each Lender and each Administrative Agent
shall attempt to notify the Company and the Subsidiaries of any request by any
governmental agency or representative thereof or other Person for disclosure of
Confidential Information after receipt of such request, and if reasonable,
practicable and permissible, before disclosure of such Confidential
Information. It is understood and agreed that the Company and the Subsidiaries
and their respective Affiliates may rely upon this Section 13.19 for any
purpose, including without limitation to comply with Regulation FD.
Notwithstanding anything herein to the contrary, any Party to this Agreement
(and any employee, representative or other agent of such Party) may disclose to
any and all persons, without limitation of any kind, the tax treatment and tax
structure of the transactions contemplated by this Agreement and all materials
of any kind (including opinions or other tax analyses) that are provided to it
relating to such tax treatment and tax structure. The preceding sentence is
intended to cause the transactions contemplated hereby not to be treated as
having been offered under conditions of confidentiality for purposes of Section
1.6011-4(b)(3) and 301.6111-2(a)(2)(ii) (or any successor provisions) of the
Treasury Regulations promulgated under the Code, and shall be construed in a
manner consistent with such purpose.

           SECTION 13.20. Effect of Restatement. This Agreement shall supersede the
Existing Credit Agreement from and after the Restatement Date with respect to
the transactions hereunder and with respect to the Loans outstanding under the
Existing Credit Agreement as of the Restatement Date. The parties hereto
acknowledge and agree, however, that (a) this Agreement and all other Loan
Documents executed and delivered herewith do not constitute a novation, payment
and reborrowing or termination of the Credit Parties’ obligations under the
Existing Credit Agreement and the other Loan Documents as in effect prior to
the Restatement Date, (b) such obligations are in all respects continuing with
only the terms being modified as provided in this Agreement and the other Loan
Documents and (c) all references in the other Loan Documents to the Credit
Agreement shall be deemed to refer without further amendment to this Agreement.

           SECTION 13.21. U.S.A. Patriot Act Notice. Each Lender and the
Administrative Agent (for itself and not on behalf of any Lender) hereby
notifies the Borrowers that pursuant to the requirements of the U.S.A. Patriot
Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the
“Act”), it is required to obtain, verify
and record information that identifies each of the Borrowers, which
information includes the names and addresses of each of the Borrowers
and other information that will allow such Lender or the Administrative Agent,
as applicable, to identify each of the Borrowers in accordance with the Act.

[Rest of page left intentionally blank]

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     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.

	 	 	 	 	 
	 	 	ZIMMER HOLDINGS, INC.,
	 
	 	 	 	 
	

	 	by
	 	/s/ Sam R. Leno
	

	 	 	 	
 
	

	 	 	 	Name: Sam R. Leno
	

	 	 	 	Title: Executive Vice President, Corporate
Finance and Operations and Chief Financial
Officer
	 
	 	 	 	 
	 	 	ZIMMER, INC.,
	 
	 	 	 	 
	

	 	by
	 	/s/ Sam R. Leno
	

	 	 	 	
 
	

	 	 	 	Name: Sam R. Leno
	

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 	 	ZIMMER K.K.
	 
	 	 	 	 
	

	 	by
	 	/s/ James T. Crines
	

	 	 	 	
 
	

	 	 	 	Name: James T. Crines
	

	 	 	 	Title: Director
	 
	 	 	 	 
	 	 	ZIMMER LTD.,
	 
	 	 	 	 
	

	 	by
	 	/s/ James P. Evensen
	

	 	 	 	
 
	

	 	 	 	Name: James P. Evensen
	

	 	 	 	Title: Finance Director
	 
	 	 	 	 
	 	 	CENTERPULSE LTD.,
	 
	 	 	 	 
	

	 	by
	 	/s/ J. Raymond Elliott
	

	 	 	 	
 
	

	 	 	 	Name: J. Raymond Elliott
	

	 	 	 	Title: President of the Board of Directors
	 
	 	 	 	 
	 	 	JPMORGAN CHASE BANK,
	 	 	individually and as General Administrative Agent,
	 
	 	 	 	 
	

	 	by
	 	/s/ DAWN LEE LUM
	

	 	 	 	
 
	

	 	 	 	Name: DAWN LEE LUM
	

	 	 	 	Title: VICE PRESIDENT

84

 

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, TOKYO BRANCH,
	 	 	as Japanese Administrative Agent,
	 
	 	 	 	 
	

	 	by	 	 
	

	 	 	 	
 
	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	 	 	J.P. MORGAN EUROPE LIMITED, as European
Administrative Agent,
	 
	 	 	 	 
	

	 	by	 	 
	

	 	 	 	
 
	

	 	 	 	Name:
	

	 	 	 	Title:

 

 

	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO
ZIMMER HOLDINGS, INC. AMENDED AND
RESTATED REVOLVING CREDIT AND TERM
LOAN AGREEMENT DATED AS OF MAY 24,
2004
	 
	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 
	 	 	Zimmer Investments, LLC
	 
	 	 	 	 
	

	 	by
	 	/s/ James T. Crines
	

	 	 	 	
 
	

	 	 	 	Name : James T. Crines
	

	 	 	 	Title: President

 

 

	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO
ZIMMER HOLDINGS, INC. AMENDED AND
RESTATED REVOLVING CREDIT AND TERM
LOAN AGREEMENT DATED AS OF MAY 24,
2004
	 
	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 
	 	 	Zimmer Orthopaedic Surgical Products, Inc.
	 
	 	 	 	 
	

	 	by
	 	/s/ James T. Crines
	

	 	 	 	
 
	

	 	 	 	Name: James T. Crines
	

	 	 	 	Title: Vice President & Treasurer

 

 

	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO
ZIMMER HOLDINGS, INC. AMENDED AND
RESTATED REVOLVING CREDIT AND TERM
LOAN AGREEMENT DATED AS OF MAY 24,
2004
	 
	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 
	

	 	Zimmer Production, Inc.

	 
	 	 	 	 
	

	 	by
	 	/s/ James T. Crines
	

	 	 	 	
 
	

	 	 	 	Name: James T. Crines
	

	 	 	 	Title: Vice President & Treasurer

 

 

	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO
ZIMMER HOLDINGS, INC. AMENDED AND
RESTATED REVOLVING CREDIT AND TERM
LOAN AGREEMENT DATED AS OF MAY 24,
2004
	 
	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 
	 	 	Zimmer Technology, Inc.
	 
	 	 	 	 
	

	 	by
	 	/s/ James T. Crines
	

	 	 	 	
 
	

	 	 	 	Name: James T. Crines
	

	 	 	 	Title: Vice President & Treasurer

 

 

	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO
ZIMMER HOLDINGS, INC. AMENDED AND
RESTATED REVOLVING CREDIT AND TERM
LOAN AGREEMENT DATED AS OF MAY 24,
2004
	 
	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 
	 	 	Zimmer US, Inc.
	 
	 	 	 	 
	

	 	by
	 	/s/ James T. Crines
	

	 	 	 	
 
	

	 	 	 	Name: James T. Crines
	

	 	 	 	Title: Vice President & Treasurer

 

 

	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO
ZIMMER HOLDINGS, INC. AMENDED AND
RESTATED REVOLVING CREDIT AND TERM
LOAN AGREEMENT DATED AS OF MAY 24,
2004
	 
	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 
	 	 	Zimmer CEP USA Holding Co.
	 
	 	 	 	 
	

	 	by
	 	/s/ Sam R. Leno
	

	 	 	 	
 
	

	 	 	 	Name: Sam R. Leno
	

	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO
ZIMMER HOLDINGS, INC. AMENDED AND
RESTATED REVOLVING CREDIT AND TERM
LOAN AGREEMENT DATED AS OF MAY 24,
2004
	 
	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 
	 	 	Zimmer Spine, Inc.
	 
	 	 	 	 
	

	 	by
	 	/s/ Sam R. Leno
	

	 	 	 	
 
	

	 	 	 	Name: Sam R. Leno
	

	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO
ZIMMER HOLDINGS, INC. AMENDED AND
RESTATED REVOLVING CREDIT AND TERM
LOAN AGREEMENT DATED AS OF MAY 24,
2004
	 
	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 
	 	 	Zimmer Orthobiologics, Inc.
	 
	 	 	 	 
	

	 	by
	 	/s/ Sam R. Leno
	

	 	 	 	
 
	

	 	 	 	Name: Sam R. Leno
	

	 	 	 	Title: Vice President

 

 

	 	 	 	 	 
	 	COUNTERPART SIGNATURE PAGE TO

ZIMMER HOLDINGS, INC. AMENDED AND

RESTATED REVOLVING CREDIT AND TERM

LOAN AGREEMENT DATED AS OF MAY 24,

2004

Subsidiary Guarantor:

Zimmer Dental, Inc.

 	 
	 	by	/s/   Sam R. Leno
 	 
	 	 	Name:  	Sam R. Leno 
	 	 	Title: 	Vice President 
	 

 

 

	 	 	 	 	 
	 	COUNTERPART SIGNATURE PAGE TO

ZIMMER HOLDINGS, INC. AMENDED AND

RESTATED REVOLVING CREDIT AND TERM

LOAN AGREEMENT DATED AS OF MAY 24,

2004

Subsidiary Guarantor:

Zimmer CEP USA. Inc.

 	 
	 	by	/s/ Sam R. Leno
 	 
	 	 	Name:  	Sam R. Leno 
	 	 	Title: 	Vice President 
	 

 

 

	 	 	 	 	 
	 	COUNTERPART SIGNATURE PAGE TO

ZIMMER HOLDINGS, INC. AMENDED AND

RESTATED REVOLVING CREDIT AND TERM

LOAN AGREEMENT DATED AS OF MAY 24,

2004

Subsidiary Guarantor:

Zimmer Austin. Inc.

 	 
	 	by	/s/ Sam R. Leno
 	 
	 	 	Name:  	Sam R. Leno 
	 	 	Title: 	Vice President 
	 

 

 

	 	 	 	 	 
	 	COUNTERPART SIGNATURE PAGE TO

ZIMMER HOLDINGS, INC. AMENDED AND

RESTATED REVOLVING CREDIT AND TERM

LOAN AGREEMENT DATED AS OF MAY 24,

2004

Subsidiary Guarantor:

Zimmer Spine Surgical, Inc.

 	 
	 	by	/s/ Sam R. Leno
 	 
	 	 	Name:  	Sam R. Leno 
	 	 	Title: 	Vice President 
	 

 

 

	 	 	 	 	 
	 	COUNTERPART SIGNATURE PAGE TO

ZIMMER HOLDINGS, INC. AMENDED AND

RESTATED REVOLVING CREDIT AND TERM

LOAN AGREEMENT DATED AS OF MAY 24,

2004

Subsidiary Guarantor:

Implex Corp.

 	 
	 	by	/s/ Sam R. Leno
 	 
	 	 	Name:  	Sam R. Leno 
	 	 	Title: 	Vice Presidentexv10w2

 

EXHIBIT 10.2

EXECUTION COPY

$400,000,000

364-DAY CREDIT AGREEMENT

among

ZIMMER HOLDINGS, INC.,

ZIMMER, INC.,

THE BORROWING SUBSIDIARIES,

THE LENDERS NAMED HEREIN,

and

JPMORGAN CHASE BANK, as Administrative Agent,

Dated as of May 24, 2004

J. P. Morgan Securities Inc., Credit Suisse First Boston,

and Banc of America Securities LLC,

as Joint Lead Arrangers and Joint Bookrunners

Credit Suisse First Boston and Bank of America, N.A.

as Co-Syndication Agents

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I 
 Definitions
	 	 	 	 
	SECTION 1.01. Defined Terms
	 	 	1	 
	SECTION 1.02. Classification of Loans and Borrowings
	 	 	18	 
	SECTION 1.03. Terms Generally
	 	 	18	 
	SECTION 1.04. Accounting Terms, GAAP
	 	 	19	 
	ARTICLE II 
 Amount and Terms of the Commitments
	 	 	 	 
	SECTION 2.01. Commitments
	 	 	19	 
	SECTION 2.02. Revolving Loans and Borrowings
	 	 	19	 
	SECTION 2.03. Requests for Revolving Borrowings
	 	 	20	 
	SECTION 2.04. Borrowing Subsidiaries
	 	 	21	 
	ARTICLE III 
 Competitive Bid Loans
	 	 	 	 
	SECTION 3.01. Competitive Bid Procedure
	 	 	21	 
	ARTICLE IV 
 General Provisions Applicable to Loans
	 	 	 	 
	SECTION 4.01. Funding of Borrowings
	 	 	23	 
	SECTION 4.02. Interest Elections
	 	 	24	 
	SECTION 4.03. Termination and Reduction of Commitments
	 	 	25	 
	SECTION 4.04. Repayment of Loans; Evidence of Debt
	 	 	26	 
	SECTION 4.05. Prepayment of Loans
	 	 	27	 
	SECTION 4.06. Fees
	 	 	28	 
	SECTION 4.07. Interest
	 	 	28	 
	SECTION 4.08. Alternate Rate of Interest
	 	 	29	 
	SECTION 4.09. Increased Costs
	 	 	30	 
	SECTION 4.10. Break Funding Payments
	 	 	31	 
	SECTION 4.11. Taxes
	 	 	32	 
	SECTION 4.12. Payments Generally; Pro Rata Treatment; Sharing of Setoffs
	 	 	35	 
	SECTION 4.13. Mitigation Obligations; Replacement of Lenders
	 	 	36	 

 

 

	 	 	 	 	 
	ARTICLE V 
 Representations and Warranties
	 	 	 	 
	SECTION 5.01. Organization; Powers
	 	 	37	 
	SECTION 5.02. Authorization
	 	 	37	 
	SECTION 5.03. Enforceability
	 	 	37	 
	SECTION 5.04. Governmental Approvals
	 	 	37	 
	SECTION 5.05. Financial Statements; No Material Adverse Effect
	 	 	38	 
	SECTION 5.06. Litigation, Compliance with Laws
	 	 	38	 
	SECTION 5.07. Federal Reserve Regulations
	 	 	38	 
	SECTION 5.08. Taxes
	 	 	38	 
	SECTION 5.09. Employee Benefit Plans
	 	 	39	 
	SECTION 5.10. Environmental and Safety Matters
	 	 	39	 
	SECTION 5.11. Properties
	 	 	39	 
	SECTION 5.12. Investment and Holding Company Status
	 	 	39	 
	ARTICLE VI 
 Conditions
	 	 	 	 
	SECTION 6.01. Effective Date
	 	 	40	 
	SECTION 6.02. Conditions to All Other Extensions of Credit
	 	 	41	 
	SECTION 6.03. Initial Borrowing by Each Borrowing Subsidiary
	 	 	41	 
	ARTICLE VII 
 Affirmative Covenants
	 	 	 	 
	SECTION 7.01. Existence
	 	 	41	 
	SECTION 7.02. Business and Properties
	 	 	42	 
	SECTION 7.03. Financial Statements, Reports, Etc
	 	 	42	 
	SECTION 7.04. Insurance
	 	 	43	 
	SECTION 7.05. Obligations and Taxes
	 	 	43	 
	SECTION 7.06. Litigation and Other Notices
	 	 	43	 
	SECTION 7.07. Books and Records
	 	 	43	 
	SECTION 7.08. Subsidiary Guarantor
	 	 	44	 
	SECTION 7.09. Use of Proceeds
	 	 	44	 
	ARTICLE VIII 
 Negative Covenants
	 	 	 	 
	SECTION 8.01. Consolidations, Mergers, and Sales of Assets
	 	 	44	 
	SECTION 8.02. Liens
	 	 	45	 

ii

 

	 	 	 	 	 
	SECTION 8.03. Limitation on Sale and Leaseback Transactions
	 	 	46	 
	SECTION 8.04. Financial Condition Covenants
	 	 	46	 
	SECTION 8.05. Indebtedness
	 	 	47	 
	SECTION 8.06. Transactions with Affiliates
	 	 	47	 
	SECTION 8.07. Restricted Payments
	 	 	47	 
	SECTION 8.08. Investments
	 	 	47	 
	ARTICLE IX 
 Events of Default
	 	 	 	 
	ARTICLE X 
 The Administrative Agent
	 	 	 	 
	ARTICLE XI 
 Miscellaneous
	 	 	 	 
	SECTION 11.01. Notices
	 	 	53	 
	SECTION 11.02. Survival of Agreement
	 	 	53	 
	SECTION 11.03. Binding Effect
	 	 	54	 
	SECTION 11.04. Successors and Assigns
	 	 	54	 
	SECTION 11.05. Expenses, Indemnity
	 	 	57	 
	SECTION 11.06. Applicable Law
	 	 	58	 
	SECTION 11.07. Waivers, Amendment
	 	 	58	 
	SECTION 11.08. Entire Agreement
	 	 	59	 
	SECTION 11.09. Severability
	 	 	59	 
	SECTION 11.10. Counterparts
	 	 	59	 
	SECTION 11.11. Headings
	 	 	59	 
	SECTION 11.12. Right of Setoff
	 	 	59	 
	SECTION 11.13. Jurisdiction: Consent to Service of Process
	 	 	59	 
	SECTION 11.14. Waiver of Jury Trial
	 	 	60	 
	SECTION 11.15. Conversion of Currencies
	 	 	60	 
	SECTION 11.16. Guaranty
	 	 	61	 
	SECTION 11.17. Confidentiality
	 	 	63	 
	SECTION 11.18. U.S.A. Patriot Act Notice
	 	 	64	 
	 
	SCHEDULES:
	 	 	 	 
	Schedule 2.01 Commitments
	 	 	 	 
	Schedule 8.02 Existing Liens
	 	 	 	 
	Schedule 8.06 Transactions with Affiliates
	 	 	 	 

iii

 

	 	 	 
	EXHIBITS:
	 	 
	 
	 	 
	Exhibit A-1

	 	Form of Competitive Bid Request
	Exhibit A-2

	 	Form of Notice of Competitive Bid Request
	Exhibit A-3

	 	Form of Competitive Bid
	Exhibit A-4

	 	Form of Competitive Bid Accept/Reject Letter
	Exhibit A-5

	 	Form of Borrowing Request
	Exhibit B

	 	Form of Assignment and Acceptance
	Exhibit C

	 	Form of Opinion of Baker & Daniels
	Exhibit D

	 	Form of Administrative Questionnaire
	Exhibit E

	 	Form of Borrowing Subsidiary Agreement
	Exhibit F

	 	Form of Borrowing Subsidiary Termination

iv

 

           364-DAY CREDIT AGREEMENT (the “Agreement”) dated as of
May 24, 2004, among ZIMMER HOLDINGS, INC., a Delaware
corporation (the “Company”), ZIMMER, INC., a Delaware
corporation (“Zimmer”), the BORROWING SUBSIDIARIES (as
defined herein), the LENDERS (as defined herein), and
JPMORGAN CHASE BANK, a New York banking corporation, as
administrative agent for the Lenders (in such capacity, the
“Administrative Agent”).

           The parties hereto agree as follows:

ARTICLE I

Definitions

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

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

           “Acquisition” shall mean the acquisition by the Company of Centerpulse AG,
a Swiss company, and Incentive Capital AG, a Swiss registered investment
company, and all related transactions.

           “Acquisition Date” shall mean October 2, 2003.

           “Adjusted Eurocurrency Rate” shall mean, with respect to any Eurocurrency
Borrowing for any Interest Period, an interest rate per annum equal to (i) the
applicable Eurocurrency Rate in effect for such Interest Period divided by (ii)
one minus the Eurocurrency Reserve Requirements.

           “Administrative Agent” shall mean JPMCB, together with its affiliates (it
being understood that any notices required to be delivered under this Agreement
to the Administrative Agent need not be delivered to such affiliates), as
administrative agent for the Lenders under this Agreement and the other Loan
Documents, and any successor thereto appointed pursuant to Article X.

           “Administrative Fees” shall have the meaning assigned to such term in
Section 4.06(b).

           “Administrative Questionnaire” shall mean an administrative questionnaire
delivered by a Lender pursuant to Section 11.04 in the form of Exhibit D.

           “Advance Agent” shall mean JPMCB, as competitive advance facility
agent.

 

 

           “Affiliate” shall mean, when used with respect to a specified Person,
another Person that directly, or indirectly, Controls or is Controlled by or is
under common Control with the Person specified.

           “Alternate Base Rate” shall mean for any day, a rate per annum equal to
the greater of (a) the rate of interest per annum publicly announced from time
to time by JPMCB as its base rate in effect at its principal office in New York
City and (b) 1/2 of one percent above the Federal Funds Effective Rate. If for
any reason JPMCB shall have determined (which determination shall be conclusive
absent manifest error) that it is unable to ascertain the Federal Funds
Effective Rate specified in clause (b) of the first sentence of this
definition, for any reason, including, without limitation, the inability or
failure of JPMCB to obtain sufficient quotations in accordance with the terms
hereof, the Alternate Base Rate shall be determined without regard to clause
(b) of the first sentence of this definition until the circumstances giving
rise to such inability no longer exist. Any change in the Alternate Base Rate
shall be effective on the effective date of any change in such rate.

           “Applicable Margin” shall mean, for each Loan, the applicable rate per
annum determined pursuant to the Pricing Grid.

           “Applicable Percentage” shall mean, with respect to any Lender, the
percentage of the total Commitments represented by such Lender’s Commitments.
If the Commitments have terminated or expired, “Applicable Percentage” shall
mean, with respect to any Lender, the percentage of the aggregate outstanding
principal amount of the Revolving Credit Exposures and Competitive Loans
represented by the aggregate outstanding principal amount of such Lender’s
Revolving Credit Exposure and Competitive Loans.

           “Arrangers” shall mean J.P. Morgan Securities Inc., CSFB and Banc of
America Securities LLC.

           “Assignment and Acceptance” shall mean an assignment and acceptance
entered into by a Lender and an assignee in the form of Exhibit B, or such
other form as shall be approved by the Administrative Agent.

           “Availability Period” shall mean the period from and including the
Effective Date to (but excluding) the earlier of the Termination Date and the
date of termination of the Commitments.

           “Bank of America” shall mean Bank of America, N.A.

           “Basis Point” shall mean 1/100th of 1%.

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

           “Board of Directors” shall mean either the board of directors of the
Company or any duly authorized committee thereof or any committee of officers
of the Company acting pursuant to authority granted by the board of directors
of the Company or any committee of such board.

2

 

           “Borrower” shall mean the Company, Zimmer or any Borrowing
Subsidiary.

           “Borrower Obligations” shall mean the due and punctual payment of (i) the
principal of and interest on any Loans made by the Lenders to the Borrowers
pursuant to this Agreement, when and as due, whether at maturity, by
acceleration, upon one or more dates set for prepayment or otherwise and (ii)
all other monetary obligations, including fees, costs, expenses and indemnities
(including the obligations described in Section 2.04) of the Borrowers to the
Lenders under this Agreement and the other Loan Documents.

           “Borrowing” shall mean (a) Loans of the same Class and Type, made,
converted or continued on the same date and, in the case of Eurocurrency Loans,
as to which a single Interest Period is in effect or (b) a Competitive Loan or
group of Competitive Loans of the same Type made on the same date and as to
which a single Interest Period is in effect.

           “Borrowing Request” shall mean a request by any Borrower for a Borrowing
in accordance with Section 2.03.

           “Borrowing Subsidiary” shall mean any Wholly Owned Subsidiary of the
Company designated as a Borrowing Subsidiary by the Company pursuant to Section
2.04.

           “Borrowing Subsidiary Agreement” shall mean a Borrowing Subsidiary
Agreement substantially in the form of Exhibit E.

           “Borrowing Subsidiary Termination” shall mean a Borrowing Subsidiary
Termination substantially in the form of Exhibit F.

           “Business Day” shall mean any day (other than a day which is a Saturday,
Sunday or legal holiday in the State of New York) on which banks are open for
business in New York City; provided, however, that, when used in connection
with a Eurocurrency Loan, the term “Business Day” shall also exclude any day on
which banks are not open for dealings in dollar deposits in the London
interbank market.

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

           “Cash Equivalents” shall mean (a) marketable direct obligations issued by,
or unconditionally guaranteed or insured by, the United States Government or
issued by any agency thereof and backed by the full faith and credit of the
United States, in each case maturing within one year from the date of
acquisition; (b) certificates of deposit, time deposits, eurodollar time
deposits, bankers’ acceptances or overnight bank deposits having maturities of
six months or less from the date of acquisition issued by any Lender
or by any commercial bank organized under the laws of the United States or
any state thereof whose short-term commercial paper rating at the time of
acquisition is at least B or the equivalent thereof by Fitch IBCA, A-3 or the
equivalent thereof by S&P, or P-3 or the equivalent thereof by Moody’s; (c)
commercial paper of

3

 

an issuer rated at least A-2 or the equivalent thereof at the time of
acquisition by S&P or at least P-2 or the equivalent thereof at the time of
acquisition by Moody’s, or carrying an equivalent rating by a nationally
recognized rating agency, if both of the two named rating agencies cease
publishing ratings of commercial paper issuers generally, and maturing within
six months from the date of acquisition; (d) repurchase obligations of any
Lender or of any commercial bank satisfying the requirements of clause (b) of
this definition, having a term of not more than 30 days, with respect to
securities issued or fully guaranteed or insured by the United States
government; (e) securities or marketable direct obligations with maturities of
one year or less from the date of acquisition issued or fully guaranteed by any
state, commonwealth or territory of the United States, by any political
subdivision or taxing authority of any such state, commonwealth or territory or
by any foreign government, the securities of which state, commonwealth,
territory, political subdivision, taxing authority or foreign government (as
the case may be) are rated at least A by S&P or A by Moody’s; (f) securities
with maturities of six months or less from the date of acquisition backed by
standby letters of credit issued by any Lender or any commercial bank
satisfying the requirements of clause (b) of this definition; or (g) shares of
money market mutual or similar funds which invest exclusively in assets
satisfying the requirements of clauses (a) through (f) of this definition;
provided, however, that, in case of any investment by a Foreign Subsidiary,
“Cash Equivalents” shall also include: (i) certificates of deposit, time
deposits, Eurodollar time deposits, bankers’ acceptances or overnight bank
deposits having maturities of six months or less from the date of acquisition
issued by any commercial bank located in the same jurisdiction as such Foreign
Subsidiary whose short-term commercial paper rating at the time of acquisition
would meet or exceed those ratings applicable to a Lender set forth in clause
(b) hereof, (ii) direct obligations of the sovereign nation (or any agency
thereof) in which such Foreign Subsidiary is organized or is conducting
business or in obligations fully and unconditionally guaranteed by such
sovereign nation (or any agency thereof), in each case maturing within one year
from the date of acquisition, (iii) investments of the type and maturity
described in clauses (c) through (f) above of obligors located in the same
jurisdiction as such Foreign Subsidiary, which Investments or obligors (or the
parent of any such obligor) have ratings described in clauses (c) through (f)
or equivalent ratings from comparable foreign rating agencies and (iv) shares
of money market mutual or similar funds which invest exclusively in assets
otherwise satisfying the requirements of this proviso.

           “Change in Control” shall be deemed to have occurred if (a) any Person or
group of Persons (other than (i) the Company, (ii) any Subsidiary or (iii) any
employee or director benefit plan or stock plan of the Company or a Subsidiary
or any trustee or fiduciary with respect to any such plan when acting in that
capacity or any trust related to any such plan) shall have acquired beneficial
ownership of shares representing more than 20% of the combined voting power
represented by the outstanding Voting Shares of the Company (within the meaning
of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended,
and the applicable rules and regulations thereunder) or (b) during any period
of 12 consecutive months, commencing before and ending after, or commencing
after the date of this Agreement, individuals who on the first day of such
period were directors of the Company (together with any replacement or
additional
directors who were nominated or elected by a majority of directors then in
office) cease to constitute a majority of the Board of Directors of the
Company.

           “Change in Law” shall mean (a) the adoption of any law, rule or regulation
after the date of this Agreement, (b) any change in any law, rule or regulation
or in the interpretation

4

 

or application thereof by any Governmental Authority after the date of this
Agreement or (c) compliance by any Lender (or, for purposes of Section 4.09, by
any lending office of such Lender or by such Lender’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 of this
Agreement.

           “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
Competitive Loans.

           “Code” shall mean the Internal Revenue Code of 1986, as amended.

           “Commitment” shall mean, as to any Lender at any time, its obligation to
make Revolving Loans to the Borrowers in an aggregate amount not to exceed at
any time outstanding the Dollar amount set forth opposite such Lender’s name in
Schedule 2.01 under the heading “Commitment”, as such amount may be reduced
from time to time pursuant to Section 4.03 and the other applicable provisions
hereof. The initial aggregate amount of the Lenders’ Commitments is
$400,000,000.

           “Company” shall have the meaning set forth in the preamble.

           “Competitive Bid” shall mean an offer by a Lender to make a Competitive
Loan pursuant to Article III.

           “Competitive Bid Accept/Reject Letter” shall mean a notification made by
the Company pursuant to Section 3.01(d) in the form of Exhibit A-4.

           “Competitive Bid Rate” shall mean, as to any Competitive Bid, the
Competitive Loan Margin or the Fixed Rate, as applicable, offered by the Lender
making such Competitive Bid.

           “Competitive Bid Request” shall mean a request made pursuant to Article
III in the form of Exhibit A-1.

           “Competitive Borrowing” shall mean a Borrowing consisting of a Competitive
Loan or concurrent Competitive Loans from the Lender or Lenders whose
Competitive Bids for such Borrowing have been accepted under the bidding
procedure described in Article III.

           “Competitive Loan” shall mean a Loan made pursuant to Article III. Each
Competitive Loan shall be a Eurocurrency Competitive Loan or a Fixed Rate Loan.

           “Competitive Loan Exposure” shall mean, with respect to any Lender at any
time, the aggregate principal amount of the outstanding Competitive Loans of
such Lender.

           “Competitive Loan Margin” shall mean, with respect to any Competitive Loan
bearing interest at a rate based on the Eurocurrency Rate, the marginal rate of
interest, if any, to be added to or subtracted from the Eurocurrency Rate in
order to determine the interest rate applicable to such Loan, as specified by
the Lender making such Loan in its related Competitive Bid.

5

 

           “Conduit Lender” means any special purpose entity organized and
administered by any Lender for the purpose of making Loans otherwise required
to be made by such Lender and designated by such Lender in a written instrument
subject to the consent of the Company (such consent not to be unreasonably
withheld); provided, that the designation by any Lender of a Conduit Lender
shall not relieve the designating Lender of any of its obligations to fund a
Loan under this Agreement if, for any reason, its Conduit Lender fails to fund
any such Loan, and the designating Lender (and not the Conduit Lender) shall
have the sole right and responsibility to deliver all consents and waivers
required or requested under this Agreement with respect to its Conduit Lender,
and provided, further, that no Conduit Lender shall (a) be entitled to receive
any greater amount pursuant to Section 4.09, 4.10, 4.11 or 11.05 than the
designating Lender would have been entitled to receive in respect of the
extensions of credit made by such Conduit Lender or (b) be deemed to have any
Commitment.

           “Consolidated EBITDA” shall mean, for any period, Consolidated Net Income
for such period plus, without duplication and to the extent reflected as a
charge in the statement of such Consolidated Net Income for such period, the
sum of (a) income tax expense, (b) interest expense, amortization or write-off
of debt discount and debt issuance costs and commissions, discounts and other
fees and charges associated with Debt (including the Loans), (c) depreciation
and amortization expense (plus, to the extent GAAP then includes amounts as
such expense, amounts of such expenses (calculated under the current GAAP) for
any prior portion of such period if not otherwise so included), (d)
amortization of intangibles (including goodwill) and organization costs (e) any
extraordinary, unusual or non-recurring non-cash expenses or losses (including,
whether or not otherwise includable as a separate item in the statement of such
Consolidated Net Income for such period, non-cash losses on sales of assets
outside of the ordinary course of business), (f) one-time integration costs in
connection with the Acquisition incurred during the first 12 months (or 18
months in the case of costs associated with the closure of manufacturing
facilities) after the Acquisition Date in an amount in the aggregate not to
exceed $200,000,000 and one-time transaction costs (other than integration
costs) in connection with the Acquisition incurred on or before the Acquisition
Date or during the first three months after the Acquisition Date, in each case
as set forth in reasonable detail on a schedule prepared by the Company and
delivered to the Lenders with the financial statements for the relevant period,
(g) purchase accounting adjustments (including inventory step-ups and
write-downs of in-process research and development) in connection with the
Acquisition and made within the first 12 months of the Acquisition Date, (h)
any non-cash expenses relating to stock option exercises (if applicable
accounting rules so require) and (i) any other non-cash charges and minus, to
the extent included in the statement of such Consolidated Net Income for such
period, the sum of (a) interest income, (b) any extraordinary, unusual or
non-recurring income or gains (including, whether or not otherwise includable
as a separate item in the statement of such Consolidated Net Income for such
period, gains on the sales of assets outside of the ordinary course of
business) and (c) any other non-cash income, all as determined on a
consolidated basis. For the purposes of calculating Consolidated EBITDA for
any period of four consecutive fiscal quarters (each, a “Reference Period”)
pursuant to any determination of the Consolidated Leverage Ratio, (i) if at any
time during such Reference Period the Company or any Subsidiary shall have made
any Material
Disposition, the Consolidated EBITDA for such Reference Period shall be
reduced by an amount equal to the Consolidated EBITDA (if positive)
attributable to the property that is the subject of such Material Disposition
for such Reference Period or increased by an amount equal to the Consolidated
EBITDA (if negative) attributable thereto for such

6

 

Reference Period and (ii) if during such Reference Period the Company or any
Subsidiary shall have made a Material Acquisition, Consolidated EBITDA for such
Reference Period shall be calculated after giving pro forma effect thereto as
if such Material Acquisition occurred on the first day of such Reference
Period. As used in this definition, “Material Acquisition” means any
acquisition of property or series of related acquisitions of property that (a)
constitutes assets comprising all or substantially all of an operating unit of
a business or constitutes all or substantially all of the common stock of a
Person and (b) involves the payment of consideration by the Company and its
Subsidiaries in excess of $25,000,000; and “Material Disposition” means any
Disposition of property or series of related Dispositions of property that
yields gross proceeds to the Borrower or any of its Subsidiaries in excess of
$25,000,000.

           “Consolidated Interest Coverage Ratio” shall mean, for any period, the
ratio of (a) Consolidated EBITDA for such period to (b) Consolidated Interest
Expense for such period.

           “Consolidated Interest Expense” shall mean, for any period, total cash
interest expense (including that attributable to Capital Lease Obligations) of
the Company and its Subsidiaries for such period with respect to all
outstanding Debt of the Company and its Subsidiaries (including all
commissions, discounts and other fees and charges owed with respect to letters
of credit and bankers’ acceptance financing), minus interest income on cash
equivalent investments.

           “Consolidated Leverage Ratio” shall mean, as at the last day of any
period, the ratio of (a) the sum of (i) Consolidated Total Debt plus, to the
extent not included in the definition of Consolidated Total Debt, (ii) the
aggregate amount of financing provided by third-parties in connection with
Permitted Receivables Securitizations on such day to (b) Consolidated EBITDA
for such period.

           “Consolidated Net Income” shall mean, for any period, the consolidated net
income (or loss) of the Company and its Subsidiaries, determined on a
consolidated basis in accordance with GAAP; provided that there shall be
excluded, without duplication, (a) the income (or deficit) of any Person
accrued prior to the date it becomes a Subsidiary of the Company or is merged
into or consolidated with the Company or any of its Subsidiaries, (b) the
income (or deficit) of any Person (other than a Subsidiary of the Company) in
which the Company or any of its Subsidiaries has an ownership interest, except
to the extent that any such income is actually received by the Company or such
Subsidiary in the form of dividends or similar distributions and (c) the
undistributed earnings of any Subsidiary of the Company to the extent that the
declaration or payment of dividends or similar distributions by such Subsidiary
is not at the time permitted by the terms of any Contractual Obligation (other
than under any Loan Document) or Requirement of Law applicable to such
Subsidiary.

           “Consolidated Net Tangible Assets” shall mean, with respect to the
Company, the total amount of its assets (less applicable reserves and other
properly deductible items) after deducting (i) all current liabilities
(excluding the amount of those which are by their terms extendable or renewable
at the option of the obligor to a date more than 12 months after the date as of
which the amount is being determined) and (ii)
all goodwill, tradenames, trademarks, patents, unamortized debt discount
and expense and other like intangible assets, all as set forth

7

 

on the most recent balance sheet of the Company and its consolidated
subsidiaries and determined on a consolidated basis in accordance with GAAP.

           “Consolidated Total Debt” shall mean, at any date, the aggregate stated
balance sheet amount of all Debt of the Company and its Subsidiaries at such
date, determined on a consolidated basis in accordance with GAAP, minus up to
$50,000,000 of cash and cash equivalent investments held in the United States
by the Company and Zimmer and the Subsidiary Guarantors; provided that such
cash and cash equivalent investments are free of any Liens.

           “Contractual Obligation” shall mean, as to any Person, any provision of
any security issued by such Person or of any agreement, instrument or other
undertaking to which such Person is a party or by which it or any of its
property is bound.

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

           “Credit Party” shall mean any Borrower or any Subsidiary
Guarantor.

           “CSFB” shall mean Credit Suisse First Boston, a bank organized under the
laws of Switzerland, acting through its Cayman Islands branch.

           “Debt” of any Person, shall mean, without duplication, (i) all obligations
of such Person represented by notes, bonds, debentures or similar evidences of
indebtedness; (ii) all indebtedness of such Person for borrowed money or for
the deferred purchase price of property or services other than, in the case of
any such deferred purchase price, on normal trade terms, (iii) all rental
obligations of such Person as lessee under leases which shall have been or
should be recorded as Capital Lease Obligations, (iv) all indebtedness of such
Person created or arising under any conditional sale or other title retention
agreement with respect to property acquired by such Person (even though the
rights and remedies of the seller or lender under such agreement in the event
of default are limited to repossession or sale of such property), (v) all
obligations, contingent or otherwise, of such Person as an account party or
applicant under or in respect of acceptances, letters of credit, surety bonds
or similar arrangements, (vi) the liquidation value of all preferred capital
stock of such Person which is redeemable at the option of the holder thereof or
which may become (by scheduled or mandatory redemption) due within one year of
the Maturity Date, (vii) all Guarantees of such Person in respect of
obligations of the kind referred to in clauses (i) through (vi) above, (viii)
all obligations of the kind referred to in clauses (i) through (vii) above
secured by (or for which the holder of such obligation has an existing right,
contingent or otherwise, to be secured by) any Lien on property (including
accounts and contract rights) owned by the applicable Person, whether or not
such Person has assumed or become liable for the payment of such obligation and
(ix) for the purposes of paragraph (f) of Article IX only, all obligations in
respect of Hedge Agreements. The Debt of any Person shall include Debt of any
other entity (including any partnership in which such Person is a general
partner) to the extent such Person is liable therefore as a result of such
Person’s
ownership interest in or other relationship with such entity, except to
the extent the terms of such Debt expressly provide that such Person is not
liable therefor.

8

 

           “Default” shall mean 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.

           “Designated Obligations” shall mean all obligations of the Credit Parties
with respect to (a) principal of and interest on the Revolving Loans and (b)
all facility fees under Section 4.06 with respect thereto.

           “Dollars” or “$” shall mean lawful money of the United States of
America.

           “Domestic Wholly Owned Subsidiary” shall mean a Wholly Owned Subsidiary
that is incorporated or organized under the laws of the United States or any
state or political subdivision thereof.

           “Effective Date” shall mean the date on which the conditions specified in
Section 6.01 are satisfied (or waived in accordance with Section 11.07).

           “Engagement Letter” shall mean the Engagement Letter dated as of April 7,
2004, between the Company and the Administrative Agent.

           “Environmental and Safety Laws” shall mean any and all applicable current
and future treaties, laws (including without limitation common law),
regulations, enforceable requirements, binding determinations, orders, decrees,
judgments, injunctions, permits, approvals, authorizations, licenses,
permissions, or binding agreements issued, promulgated or entered by any
Governmental Authority, relating to the environment, to employee health or
safety as it pertains to the use or handling of, or exposure to, any Hazardous
Substance, to preservation or reclamation of natural resources or to the
management, release or threatened release of any Hazardous Substance, including
without limitation the Hazardous Materials Transportation Act, the
Comprehensive Environmental Response, Compensation, and Liability Act of 1980,
as amended by the Superfund Amendments and Reauthorization Act of 1986, the
Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery
Act of 1976 and the Hazardous and Solid Waste Amendments of 1984, the Federal
Water Pollution Control Act, as amended by the Clean Water Act of 1977, the
Clean Air Act of 1970, as amended, the Toxic Substances Control Act of 1976,
the Occupational Safety and Health Act of 1970, as amended, the Emergency
Planning acid Community Right-to-Know Act of 1986, the Safe Drinking Water Act
of 1974, as amended, any similar or implementing state law, all amendments of
any of them, and any regulations promulgated under any of them.

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

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

           “ERISA Termination Event” shall mean (i) a “Reportable Event” described in
Section 4043 of ERISA and the regulations issued thereunder (other than a
“Reportable Event”

9

 

not subject to the provision for 30-day notice to the PBGC under such
regulations), or (ii) the withdrawal of the Company or any of its ERISA
Affiliates from a “single employer” Plan during a plan year in which it was a
“substantial employer”, both of such terms as defined in Section 4001 (a) of
ERISA, or (iii) the incurrence of liability under Title IV of ERISA with
respect to the termination of a Plan, or (iv) the institution of proceedings to
terminate a Plan by the PBGC or (v) the receipt by the Company or any ERISA
Affiliate of any notice (whether or not written) from the PBGC of any event or
condition which the PBGC asserts is reasonably likely to constitute grounds
under Section 4042 of ERISA to terminate, or to appoint a trustee to
administer, any Plan or (vi) the partial or complete withdrawal of the Company
or any ERISA Affiliate of the Company from, or the Insolvency or Reorganization
of, a Multiemployer Plan as defined in Section 4001(a)(3) of ERISA.

           “Eurocurrency” 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 a Eurocurrency Rate.

           “Eurocurrency Rate” shall mean, with respect to any Eurocurrency Borrowing
for any Interest Period, the rate appearing on Page 3740 or Page 3750, as the
case may be, of Dow Jones Markets (or on any successor or substitute page of
such service, or any successor to or substitute for such service, providing
rate quotations comparable to those currently provided on such page of such
service, as determined by the Administrative Agent from time to time for
purposes of providing quotations of interest rates applicable to deposits in
Dollars in the London interbank market) at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period, as
the rate for deposits in Dollars with a maturity comparable to such Interest
Period. In the event that such rate is not available at such time for any
reason, then the “Eurocurrency Rate” with respect to such Eurocurrency
Borrowing for such Interest Period shall be the rate per annum (rounded
upwards, if necessary, to the next Basis Point) equal to the arithmetic average
of the rates at which deposits in Dollars approximately equal in principal
amount to such Borrowing and for a maturity comparable to such Interest Period
are offered to the principal London offices of the Reference Lenders (or, if
any Reference Lender does not at the time maintain a London office, the
principal London office of any Affiliate of such Reference Lender) in
immediately available funds in the London interbank market at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such
Interest Period; provided, however, that, if only two Reference Lenders notify
the Administrative Agent of the rates offered to such Reference Lenders (or any
Affiliates of such Reference Lenders) as aforesaid, the Eurocurrency Rate with
respect to such Eurocurrency Borrowing shall be equal to the arithmetic average
of the rates so offered to such Reference Lenders (or any such Affiliates).

           “Eurocurrency Reserve Requirements” shall mean, with respect to the
Eurocurrency Loans of any Lender for any day, that percentage (expressed as a
decimal) that is in effect on such day, as prescribed by any Governmental
Authority for determining the reserve, liquid asset or similar requirement with
respect to such
Eurocurrency Loans for such Lender that is subject to the rules and
regulations of such Governmental Authority.

           “Event of Default” shall have the meaning assigned to such term in
Article IX.

10

 

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

           “Existing 364-Day Credit Agreement” shall mean the Amended and Restated
364-Day Credit Agreement dated as of September 12, 2003, among the Company, the
Borrowers named therein, the lenders from time to time party thereto and JPMCB,
as Administrative Agent.

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

           “Financial Officer” of any corporation shall mean the chief financial
officer, principal accounting officer, vice president of finance, controller or
treasurer of such corporation.

           “Fixed Rate” shall mean, with respect to any Competitive Loan (other than
a Eurocurrency Competitive Loan), the fixed rate of interest per annum
specified by the Lender making such Competitive Loan in its related Competitive
Bid.

           “Fixed Rate Loan” shall mean a Competitive Loan bearing interest at a
Fixed Rate.

           “Foreign Borrowing Subsidiary” shall mean any Borrowing Subsidiary that is
a Foreign Subsidiary.

           “Foreign Subsidiary” shall mean any Subsidiary that is not organized under
the laws of the United States or any State or political subdivision thereof.

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

           “Governmental Authority” shall mean the government of any nation,
including, but not limited to, the United States of America, or any political
subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government.

           “Guarantee” of or by any Person (the “guarantor”) shall mean any
obligation, contingent or otherwise, of the guarantor guaranteeing or having
the economic effect of guaranteeing any Debt or other obligation of any other
Person (the “primary obligor”) in any manner, whether directly or indirectly,
and including any obligation of the guarantor, direct or indirect, (a) to
purchase or pay (or advance or supply funds for the purchase or payment of)
such Debt or other obligation or to purchase (or to advance or supply funds for
the purchase of) any security for the payment thereof, (b) to purchase or
lease property, securities or services for the purpose of assuring the
owner of such Debt or other obligation of the payment thereof, (c) to

11

 

maintain working capital, equity capital or any other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Debt or other obligation or (d) as an account party in
respect of any letter of credit or letter of guaranty issued to support such
Debt or obligation; provided, that the term Guarantee shall not include
endorsements for collection or deposit in the ordinary course of business.

           “Guarantor” shall mean the collective reference to the Company and the
Subsidiary Guarantors.

           “Hazardous Substances” shall mean any toxic, radioactive, mutagenic,
carcinogenic, noxious, caustic or otherwise hazardous substance, material or
waste, including petroleum, its derivatives, by-products and other
hydrocarbons, including, without limitation, polychlorinated biphenyls
(“PCBs”), asbestos or asbestos-containing material, and any substance, waste or
material regulated or that could reasonably be expected to result in liability
under Environmental and Safety Laws.

           “Hedge Agreements” shall mean all interest rate swaps, caps or collar
agreements or similar arrangements dealing with interest rates or currency
exchange rates or the exchange of nominal interest obligations, either
generally or under specific contingencies.

           “Inactive Subsidiary” shall mean, at any time, any Subsidiary that (a) has
consolidated assets of less than $50,000 at such time, (b) has not conducted
any business or other operations during the prior 12-month period and (c) has
no outstanding Debt at such time.

           “Insolvency” shall mean with respect to any Multiemployer Plan, the
condition that such plan is insolvent within the meaning of Section 4245 of
ERISA.

           “Interest Election Request” shall mean a request by a Borrower to convert
or continue a Borrowing in accordance with Section 4.02.

           “Interest Payment Date” shall mean (a) with respect to any ABR Loan, the
last day of each March, June, September and December, (b) with respect to any
Eurocurrency Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the case of a Eurocurrency
Borrowing with an Interest Period of more than three months’ duration, each day
prior to the last day of such Interest Period that occurs at intervals of three
months’ duration after the first day of such Interest Period and (c) with
respect to any Fixed Rate 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 Fixed Rate
Borrowing with an Interest Period of more than 90 days’ duration (unless
otherwise specified in the applicable Competitive Bid Request), each day prior
to the last day of such Interest Period that occurs at intervals of 90 days’
duration after the first day of such Interest Period, and any other dates that
are specified in the applicable Competitive Bid Request as Interest Payment
Dates with respect to such Borrowing.

           “Interest Period” shall mean (a) as to any Eurocurrency Borrowing, the
period commencing on the date of such Borrowing and ending either (x) on the
day that
is two weeks thereafter or (y) on the numerically corresponding day in the
calendar month that is 1, 2, 3 or 6 (or, with the consent of all Lenders making
such Loan, 9 or 12) months thereafter, in each case as the applicable Borrower
may elect, and (b) as to any Fixed Rate Borrowing, the period (which

12

 

shall not be less than seven days or more than 360 days) commencing on the date
of such Borrowing and ending on the date specified in the applicable
Competitive Bid Request; provided, that (i) if any Interest Period would end on
a day other than a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless, in the case of a Eurocurrency Borrowing
only, such next succeeding Business Day would fall in the next calendar month,
in which case such Interest Period shall end on the next preceding Business Day
and (ii) any Interest Period referred to in clause (a)(y) above that commences
on the last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the last calendar month of such Interest
Period) shall end on the last Business Day of the last calendar month of such
Interest Period. For purposes hereof, the date of a Borrowing initially shall
be the date on which such Borrowing is made and, in the case of a Revolving
Borrowing, thereafter shall be the effective date of the most recent
conversion or continuation of such Borrowing.

           “Investment Grade Standing” shall exist at any time when the actual
Ratings are at or above BBB- from S&P and at or above Baa3 from Moody’s. If
either of S&P or Moody’s shall change its system of classifications after the
date of this Agreement, Investment Grade Standing shall exist at any time when
the actual Rating is at or above the new Rating which most closely corresponds
to the above-specified level under the previous rating system.

           “JPMCB” shall mean JPMorgan Chase Bank, a New York banking
corporation.

           “Lenders” shall mean (a) the financial institutions listed on Schedule
2.01 (other than any such financial institution that has ceased to be a party
hereto, pursuant to an Assignment and Acceptance) and (b) any financial
institution that has become a party hereto pursuant to an Assignment and
Acceptance; provided, that unless the context requires otherwise, each
reference herein to the Lenders shall be deemed to include any Conduit Lender.

           “Lien” shall mean any mortgage, lien, pledge, encumbrance, charge or
security interest.

           “Loan Documents” shall mean this Agreement, each Borrowing Subsidiary
Agreement, each Borrowing Subsidiary Termination and each promissory note held
by a Lender pursuant to Section 4.04(e).

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

           “Margin Regulations” shall mean Regulations T, U and X of the Board as
from time to time in effect, and all official rulings and interpretations
thereunder or thereof.

           “Material Adverse Effect” shall mean a material adverse effect on the
business, operations, properties or financial condition of the Company and its
consolidated Subsidiaries, taken as a whole.

           “Maturity Date” shall mean the Termination Date, unless the Maturity Date
is extended pursuant to Section 4.03(d), in which case “Maturity Date” shall
mean the first anniversary of the Termination Date.

13

 

           “Moody’s” shall mean Moody’s Investors Service, Inc. or any
successor thereto.

           “Net Cash Proceeds” shall mean (a) in the case of a Permitted Receivables
Securitization, the gross cash proceeds obtained from third-party financing
sources net of attorneys’ fees, investment banking fees, accountants’ fees,
underwriting discounts and commissions and other customary fees and expenses
actually incurred in connection therewith and (b) in the case of a Permitted
Securities Issuance, the gross cash proceeds received from such issuance or
incurrence, net of attorneys’ fees, investment banking fees, accountants’ fees,
underwriting discounts and commissions and other customary fees and expenses
actually incurred in connection therewith.

           “Notice of Competitive Bid Request” shall mean a notification made
pursuant to Article III in the form of Exhibit A-2.

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

           “Permitted Debt” shall mean (i) Debt of any Subsidiary to any Credit
Party, (ii) Guarantees by any Subsidiary of Debt of any Credit Party (other
than the Company) and Guarantees by the Company of any Debt of any Subsidiary,
(iii) any Debt incurred pursuant to Sale and Leaseback Transactions permitted
under Section 8.03, (iv) Debt of any Subsidiary as an account party in respect
of trade letters of credit, to the extent that such letters of credit are not
drawn upon, (v) Debt assumed in connection with any Investment permitted under
Section 8.08, (vi) Debt secured by any Lien permitted pursuant to Section 8.02
(b) or (q), (vii) Debt consisting of guarantees of loans made to officers,
directors or employees of any Subsidiary, (viii) unsecured trade accounts
payable and other unsecured current Debt incurred in the ordinary course of
business and not more than 120 days past due (but excluding any Debt for
borrowed money), (ix) any Permitted Receivables Securitization, (x) any
Permitted Securities Issuance, (xi) Debt with respect to surety, appeal and
performance bonds obtained by any Subsidiary in the ordinary course of
business, (xii) Debt incurred under the Revolving Credit and Term Loan
Agreement; and (xiii) any replacement, renewal, refinancing or extension of any
Debt referenced above that does not exceed the aggregate principal amount (plus
associated fees and expenses) of the Debt being replaced, renewed, refinanced
or extended (except that accrued and unpaid interest not delinquent in
accordance with its terms may be part of any refinancing pursuant to this
clause) and that otherwise complies with this Agreement.

           “Permitted Receivables Securitization” shall mean the incurrence of Debt
in respect of any receivables securitization of the Company or any Subsidiary,
provided that the aggregate principal amount of all Permitted Receivables
Securitizations outstanding at any time shall not exceed $200,000,000.

           “Permitted Securities Issuance” shall mean the issuance or incurrence by
the Company of any Debt for borrowed money (which may be guaranteed by one or
more Subsidiary Guarantors) in respect of debt securities issued in a public
offering or a private placement, provided that the aggregate principal amount
of all Permitted Securities
Issuances outstanding at any time shall not exceed $500,000,000, and
provided further, that any debt

14

 

securities (and related guarantees, if any) issued or incurred pursuant to any
Permitted Securities Issuance shall be subordinated to, or pari passu with, the
Loans or Guarantees thereof.

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

           “Plan” shall mean any employee pension benefit plan (other than a
Multiemployer Plan) as defined in Section 4001(a)(3) of ERISA, subject to the
provisions of Title IV of ERISA or Section 412 of the Code that is maintained
by the Company or any ERISA Affiliate for current or former employees, or any
beneficiary thereof, of the Company or any ERISA Affiliate.

           “Pricing Grid” shall mean the Facility Fee and Applicable Margin Pricing
Grid set forth below.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	S&P/Moody’s	 	 	 	 	 	Applicable	 	Applicable
	Rating Equivalent	 	 	 	 	 	Margin for	 	Margin for
	of the Company’s	 	 	 	 	 	Eurocurrency	 	ABR
	senior unsecured	 	Facility Fee	 	Revolving	 	Revolving
	non-credit enhanced	 	(in Basis	 	Loans (in	 	Loans (in
	long-term debt
	 	Points)
	 	Basis Points)
	 	Basis Points)

	Higher than

BBB+/Baa1

	 	 	7.5	 	 	 	30.0	 	 	 	0.0	 
	BBB+/Baa1 or

BBB/Baa1 or

BBB+/Baa2

	 	 	10.0	 	 	 	40.0	 	 	 	0.0	 
	BBB/Baa2 or

BBB-/Baa2 or

BBB/Baa3

	 	 	12.5	 	 	 	50.0	 	 	 	0.0	 
	BBB-/Baa3

	 	 	15.0	 	 	 	85.0	 	 	 	0.0	 
	BBB-/Ba1 or

BB+/Baa3

	 	 	20.0	 	 	 	130.0	 	 	 	30.0	 
	BB+/Ba1 or

lower or unrated

	 	 	20.0	 	 	 	155.0	 	 	 	55.0	 

           If the S&P and Moody’s Ratings are one level apart, the higher Rating will
determine the Facility Fee and Applicable Margin; if the S&P and Moody’s
Ratings are more than one level apart, the Rating one level above the lower
Rating will be determinative. In the event that the Company’s senior unsecured
long-term debt is rated by only one of S&P and Moody’s, then that single Rating
shall be determinative. The Company hereby agrees that at all times it shall
maintain a Rating from either S&P or Moody’s. Each change in a Rating by a
Rating Agency shall be effective on the date such change is announced by such
Rating Agency.

           The Applicable Margin for the Loans shall be increased by 25.0 Basis
Points for each day that (i) the sum of (a) the Revolving Credit Exposures, (b)
the
Competitive Loan Exposures and (c) the aggregate principal amount of the
loans (other than Term Loans) outstanding under the Revolving Credit and Term
Loan Agreement exceed 50% of the sum of (x) the total Commitments (or, if the
Term Loan Conversion Option has been exercised, the

15

 

aggregate outstanding principal amount of the Loans outstanding) and (y) the
total revolving commitments under the Revolving Credit and Term Loan Agreement,
and (ii) the Company has an Investment Grade Standing.

           In addition to any increase in the Applicable Margins required by the
preceding paragraph, for each day after the effectiveness of the Term Loan
Conversion Option the Applicable Margin for the Loans shall be increased by
12.5 Basis Points if the Ratings shall be in the three highest categories in
the Pricing Grid above, and by 25.0 Basis Points at all other times.

           “Rating Agencies” shall mean Moody’s and S&P.

           “Ratings” shall mean the ratings from time to time established by the
Rating Agencies for senior, unsecured, non-credit-enhanced long-term debt of
the Company.

           “Reference Lenders” shall mean CSFB, JPMCB and Bank of America.

           “Register” shall have the meaning set forth in Section 11.04(d).

           “Reorganization” shall mean with respect to any Multiemployer Plan, the
condition that such plan is in reorganization within the meaning of Section
4241 of ERISA.

           “Required Lenders” shall mean, at any time, Lenders having Revolving
Credit Exposures and unused Commitments representing at least 51% of the sum of
the Revolving Credit Exposures and unused Commitments at such time; provided
that, for purposes of declaring the Loans to be due and payable pursuant to
Article IX, and for all purposes after the loans become due and payable
pursuant to Article IX or the Commitments shall have expired or terminated, the
Competitive Loan Exposures of the Lenders shall be included in their respective
Revolving Credit Exposures in determining the Required Lenders.

           “Revolving Credit and Term Loan Agreement” shall mean the Amended and
Restated Revolving Credit and Term Loan Agreement dated as of the date of this
Agreement, among the Company, Zimmer, Zimmer K.K., Zimmer Ltd., Centerpulse
Ltd., the borrowing subsidiaries party thereto, the lenders party from time to
time thereto and the Administrative Agents.

           “Revolving Credit Exposure” shall mean, as at any date of determination
with respect to any Lender, an amount equal to the aggregate unpaid principal
amount of such Lender’s Revolving Loans on such date, including, Revolving
Credit Exposure in respect of Revolving Loans for which the Maturity Date has
been extended following the exercise of the Term Loan Conversion Option.

           “Revolving Loans” shall have the meaning set forth in Section
2.01.

           “Sale and Leaseback Transaction” shall mean any arrangement with any
Person pursuant to which the Company or any Subsidiary leases any property that
has been or is to be sold or transferred by the Company or the Subsidiary to
such Person,
other than (i) temporary leases for a term, including renewals at the
option of the lessee, of not more than three years, (ii) leases between the
Company and a Subsidiary or between Subsidiaries, (iii) leases of

16

 

property executed by the time of, or within 12 months after the latest of, the
acquisition, the completion of construction or improvement, or the commencement
of commercial operation, of such property and (iv) arrangements pursuant to any
provision of law with an effect similar to that under former Section 168(f)(8)
of the Internal Revenue Code of 1954.

           “S&P” shall mean Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc. or any successor rating agency.

           “SEC” shall mean the Securities and Exchange Commission.

           “subsidiary” shall mean, with respect to any Person (the “parent”) at any
date, (a) for purposes of Sections 8.03 and 8.06 only, any Person the majority
of the outstanding Voting Stock (or equivalent voting securities of any Person
which is not a corporation) of which is owned, directly or indirectly, by the
parent or one or more subsidiaries of the parent of such Person and (b) for all
other purposes under this Agreement, 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 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.

           “Subsidiary” shall mean a subsidiary of the Company.

           “Subsidiary Guarantor” shall mean each Domestic Wholly Owned Subsidiary
that has executed a counterpart of this Agreement and has become a guarantor of
the Borrower Obligations.

           “Swiss Francs” or “CHF” shall mean the lawful money of
Switzerland.

           “Taxes” shall mean any and all present or future taxes, levies, imposts,
duties, deductions, charges or withholdings imposed by any Governmental
Authority and all liabilities with respect thereto.

           “Term Loans” shall have the meaning assigned to such term in the Revolving
Credit and Term Loan Agreement.

           “Term Loan Conversion Option” shall have the meaning set forth in Section
4.03(d).

           “Termination Date” shall mean May 23, 2005.

           “Transactions” shall mean the execution and delivery by the Credit Parties
of this Agreement (or, in the case of the Borrowing Subsidiaries, the Borrowing
Subsidiary Agreements) and the Revolving Credit and Term Loan Agreement, the
performance by the Credit Parties of their obligations hereunder and
thereunder, the
borrowings made or to be made hereunder and thereunder and the use of the
proceeds thereof.

17

 

           “Type” when used in respect of any Loan or Borrowing, shall refer to the
Rate by reference to which interest on such Loan or on the Loans comprising
such Borrowing is determined. For purposes hereof, “Rate” shall include the
Eurocurrency Rate, the Alternate Base Rate and the Fixed Rate.

           “Value” shall mean, with respect to a Sale and Leaseback Transaction, an
amount equal to the present value of the lease payments with respect to the
term of the lease (reduced by the amount of rental obligations of any sublessee
of all or part of the same property) remaining on the date as of which the
amount is being determined, without regard to any renewal or extension options
contained in the lease, discounted at an interest rate determined by the
Company at the time of the consummation of such Sale and Leaseback Transaction
as long as such interest rate is customary for leases of such type.

           “Voting Stock” shall mean, as applied to the stock of any corporation,
stock of any class or classes (however designated) having by the terms thereof
ordinary voting power to elect a majority of the members of the board of
directors (or other governing body) of such corporation other than stock having
such power only by reason of the happening of a contingency.

           “Wholly Owned Subsidiary” of any Person, a subsidiary of such Person of
which securities (except for directors’ qualifying shares) or other ownership
interests representing 100% of the equity are, at the time any determination is
being made, owned by such Person or one or more wholly owned subsidiaries of
such Person or by such Person and one or more wholly owned subsidiaries of such
Person.

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

           SECTION 1.03. Terms Generally. The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined. Whenever
the context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”. The word
“will” shall be construed to have the same meaning and effect as the word
“shall”. Unless the context requires otherwise (a) any definition of or
reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, 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 and (e) the words “asset” and “property”
shall be construed to have the same

18

 

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,
however, that if the Company notifies the Administrative Agent that the
Company wishes to amend any covenant in Article VIII or any related definition
or other financial term used herein to eliminate the effect of any change in
GAAP occurring after the date of this Agreement on the operation of such
covenant (or if the Administrative Agent notifies the Company that the Required
Lenders wish to amend Article VIII or any related definition or other financial
term used herein for such purpose), then the Company’s compliance with such
covenant shall be determined on the basis of GAAP in effect immediately before
the relevant change in GAAP became effective, until either such notice is
withdrawn or such covenant is amended in a manner satisfactory to the Company
and the Required Lenders.

ARTICLE II

Amount and Terms of the Commitments

           SECTION 2.01. Commitments. Subject to the terms and conditions set forth
herein, each Lender agrees to make revolving loans (“Revolving Loans”) to the
Borrowers from time to time during the Availability Period in Dollars in an
aggregate principal amount that will not result in (i) such Lender’s Revolving
Credit Exposure exceeding such Lender’s Commitment, (ii) the sum of the total
Revolving Credit Exposures exceeding the total Commitments or (iii) the sum of
the total Revolving Credit Exposures plus the total Competitive Loan Exposures
exceeding the total Commitments. Within the foregoing limits and subject to
the terms and conditions set forth herein, the Borrowers may borrow, prepay and
reborrow Revolving Loans. Revolving Loans repaid or prepaid on or after the
Termination Date may not be reborrowed.

           SECTION 2.02. Revolving Loans and Borrowings. (a) Each Revolving Loan
shall be made as part of a Borrowing consisting of Revolving Loans of the same
Type made by the Lenders ratably in accordance with their respective
Commitments. Each Competitive Loan shall be made in accordance with the
procedures set forth in Section 3.01.

           (b) 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 and Competitive Bids of the Lenders are several and no Lender
shall be responsible for any other Lender’s failure to make such Loans as
required.

           (c) Subject to Section 4.08, (i) Each Revolving Borrowing shall be
comprised entirely of ABR Loans or Eurocurrency Loans as the Company (on its
own behalf or on behalf of any other applicable Borrower) may request in
accordance herewith and (ii) each Competitive Borrowing shall be comprised
entirely of
Eurocurrency Loans or Fixed Rate Loans as the Company (on its own behalf
or on behalf of any other Borrower) may request in accordance

19

 

herewith. Each Lender at its option may make any Eurocurrency 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
any Borrower to repay such Loan in accordance with the terms of this Agreement.

           (d) At the commencement of each Interest Period for any Eurocurrency
Borrowing, such Borrowing shall be in an aggregate amount that is an integral
multiple of $1,000,000 and not less than $5,000,000. At the time that each ABR
Borrowing is made, such Borrowing shall be in an aggregate amount that is an
integral multiple of $1,000,000 and not less than $1,000,000; provided that an
ABR Borrowing may be in an aggregate amount that is equal to the entire unused
balance of the total Commitments. Each Competitive Borrowing shall be in an
aggregate amount that is an integral multiple of $1,000,000 and not less than
$5,000,000. Borrowings of more than one Type and Class may be outstanding at
the same time; provided that there shall not at any time be more than 10
Eurocurrency Revolving Borrowings outstanding.

           (e) Notwithstanding any other provision of this Agreement, the Company (on
its own behalf or on behalf of any other Borrower) 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.

           SECTION 2.03. Requests for Revolving Borrowings. To request a Revolving
Borrowing, the applicable Borrower or the Company (on its own behalf or on
behalf of any other Borrower) shall notify the Administrative Agent of such
request by telephone, (a) in the case of a Eurocurrency Borrowing, not later
than 1:30 p.m., New York City time, three Business Days before the date of the
proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 12:00
noon, New York City time, on the date of the proposed Borrowing. Each such
telephonic Borrowing Request shall be irrevocable and shall be confirmed
promptly by hand delivery or telecopy to the Administrative Agent of a written
Borrowing Request in the form of Exhibit A-5. Each such telephonic and written
Borrowing Request shall specify the following information in compliance with
Section 2.02:

      (i) the aggregate amount of the requested Borrowing;

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

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

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

      (v) the location and number of the account of the applicable
Borrower to which funds are to be disbursed, which shall comply with the
requirements of Section 4.01; and

      (vi) the applicable Borrower.

20

 

If no election as to the Type of Revolving Borrowing is specified, then the
requested Revolving Borrowing shall be an ABR Borrowing. If no Interest Period
is specified with respect to any requested Eurocurrency Borrowing, then the
applicable Borrower or the Company, as the case may be, shall be deemed to have
selected an Interest Period of one month’s duration. Promptly following
receipt of a Borrowing Request in accordance with this Section, the
Administrative Agent shall advise each applicable 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. Borrowing Subsidiaries. The Company may designate any
Wholly Owned Subsidiary of the Company as a Borrowing Subsidiary under the
Commitments; provided that if such Person shall be a Foreign Subsidiary, the
Administrative Agent shall be reasonably satisfied that the Lenders may make
loans and other extensions of credit to such Person in such Person’s
jurisdiction in compliance with applicable laws and regulations and without
being subject to any additional unreimbursed or unindemnified Tax or other
expense. Upon the receipt by the Administrative Agent of a Borrowing
Subsidiary Agreement executed by such a Wholly Owned Subsidiary and the
Company, such Wholly Owned Subsidiary shall be a Borrowing Subsidiary and a
party to this Agreement. A Subsidiary shall cease to be a Borrowing Subsidiary
hereunder at such time as no Loans, fees or any other amounts due in connection
therewith pursuant to the terms hereof shall be outstanding to such Subsidiary
and such Subsidiary and the Company shall have executed and delivered to the
Administrative Agent a Borrowing Subsidiary Termination; provided that,
notwithstanding anything herein to the contrary, no Borrowing Subsidiary shall
cease to be a Borrowing Subsidiary solely because it no longer is a Wholly
Owned Subsidiary of the Company so long as such Borrowing Subsidiary and the
Company shall not have executed and delivered to the Administrative Agent a
Borrowing Subsidiary Termination and the Guarantors’ guarantee of the Borrower
Obligations of such Borrowing Subsidiary pursuant to Section 11.16 has not been
released.

ARTICLE III

Competitive Bid Loans

           SECTION 3.01. Competitive Bid Procedure. (a) Subject to the terms and
conditions set forth herein, from time to time during the Availability Period
the Company (on its own behalf or on behalf of any other Borrower) may request
Competitive Bids and the Company (on its own behalf or on behalf of any other
Borrower) may (but shall not have any obligation to) accept Competitive Bids
and borrow Competitive Loans; provided that no Competitive Loan may be
requested that would result in the sum of the total Revolving Credit Exposures
plus the total Competitive Loan Exposures exceeding the total Commitments. To
request Competitive Bids, the Company (on its own behalf or on behalf of any
other Borrower) shall hand deliver or telecopy to the Advance Agent a duly
completed Competitive Bid Request in the form of Exhibit A-1 hereto, to be
received by the Advance Agent, in the case of a Eurocurrency Borrowing, not
later than 10:00 a.m., New York City time, four Business Days before the date
of the proposed Borrowing and, in the case of a Fixed Rate Borrowing, not later
than 10:00 a.m., New
York City time, two Business Days before the date of the proposed
Borrowing. A Competitive Bid Request that does not conform substantially to
Exhibit A-1 may be rejected in the Advance Agent’s sole discretion, and the
Advance Agent shall promptly notify the Company

21

 

of such rejection by telecopy. Each Competitive Bid Request shall specify the
following information in compliance with Section 2.02:

      (i) the aggregate amount of the requested Borrowing;

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

      (iii) whether such Borrowing is to be a Eurocurrency Borrowing or a
Fixed Rate Borrowing;

      (iv) the Interest Period to be applicable to such Borrowing, which
shall be a period contemplated by the definition of the term “Interest
Period” and shall end no later than the Termination Date;

      (v) the location and number of the account of the Borrower to which
funds are to be disbursed, which shall comply with the requirements of
Section 4.01; and

      (vi) the applicable Borrower.

Promptly following receipt of a Competitive Bid Request in accordance with this
Section, the Advance Agent shall notify the Lenders of the details thereof by
telecopy, inviting the Lenders to submit Competitive Bids.

           (b) Each Lender may (but shall not have any obligation to) make one or
more Competitive Bids to such Borrower in response to a Competitive Bid
Request. Each Competitive Bid by a Lender must be received by the Advance
Agent by telecopy, in the form of Exhibit A-3 hereto, in the case of a
Eurocurrency Competitive Borrowing, not later than 9:30 a.m., New York City
time, three Business Days before the proposed date of such Competitive
Borrowing, and in the case of a Fixed Rate Borrowing, not later than 11:30
a.m., New York City time, one Business Day before the proposed date of such
Competitive Borrowing. Competitive Bids that do not conform substantially to
the format of Exhibit A-3 may be rejected by the Advance Agent, and the Advance
Agent shall notify the applicable Lender as promptly as practicable. Each
Competitive Bid shall specify (i) the principal amount of the Competitive Loan
or Loans that the Lender is willing to make (which shall be a minimum of
$5,000,000 and an integral multiple of $1,000,000 and which may equal the
entire principal amount of the Competitive Borrowing Request by such Borrower),
(ii) the Competitive Bid Rate or Rates at which the Lender is prepared to make
such Loan or Loans (expressed as a percentage rate per annum in the form of a
decimal to no more than four decimal places) and (iii) the Interest Period
applicable to each such Loan and the last day thereof.

           (c) The Advance Agent shall promptly notify such Borrower by telecopy of
the Competitive Bid Rate and the principal amount specified in each Competitive
Bid and the identity of the Lender that shall have made such Competitive Bid.

           (d) Subject only to the provisions of this paragraph, such Borrower may
accept or reject any Competitive Bid. Such Borrower shall notify the Advance
Agent by telephone, confirmed by telecopy in the form of a Competitive Bid
Accept/Reject Letter, whether and to what extent it has decided to accept
or reject each Competitive Bid, in the case of

22

 

a Eurocurrency Competitive Borrowing, not later than 2:00 p.m., New York City
time, three Business Days before the date of the proposed Competitive
Borrowing, and in the case of a Fixed Rate Borrowing, not later than 2:00 p.m.,
New York City time, on the proposed date of the Competitive Borrowing; provided
that (i) the failure of such Borrower to give such notice shall be deemed to be
a rejection of each Competitive Bid, (ii) such Borrower shall not accept a
Competitive Bid made at a particular Competitive Bid Rate if the Company
rejects a Competitive Bid made at a lower Competitive Bid Rate, (iii) the
aggregate amount of the Competitive Bids accepted by such Borrower shall not
exceed the aggregate amount of the requested Competitive Borrowing specified in
the related Competitive Bid Request, (iv) to the extent necessary to comply
with clause (iii) above, such Borrower may accept Competitive Bids at the same
Competitive Bid Rate in part, which acceptance, in the case of multiple
Competitive Bids at such Competitive Bid Rate, shall be made pro rata in
accordance with the amount of each such Competitive Bid and (v) except pursuant
to clause (iv) above, no Competitive Bid shall be accepted for a Competitive
Loan unless such Competitive Loan is in a minimum principal amount of
$5,000,000 and an integral multiple of $1,000,000; provided further that if a
Competitive Loan must be in an amount less than $5,000,000 because of the
provisions of clause (iv) above, such Competitive Loan may be for a minimum of
$5,000,000 or any integral multiple of $1,000,000 thereof, and in calculating
the pro rata allocation of acceptances of portions of multiple Competitive Bids
at a particular Competitive Bid Rate pursuant to clause (iv) the amounts shall
be rounded to integral multiples of $1,000,000 in a manner which shall be in
the discretion of such Borrower. A notice given by such Borrower pursuant to
this paragraph (d) shall be irrevocable.

           (e) The Advance Agent shall promptly notify each bidding Lender by
telecopy whether or not its Competitive Bid has been accepted (and, if so, the
amount and Competitive Bid Rate so accepted), and each successful bidder will
thereupon become bound, subject to the terms and conditions hereof, to make the
Competitive Loan in respect of which its Competitive Bid has been accepted.

           (f) If the Advance Agent shall elect to submit a Competitive Bid in its
capacity as a Lender, it shall submit such Competitive Bid directly to the
Company (on its own behalf or on behalf of any other Borrower) at least one
quarter of an hour earlier than the time by which the other Lenders are
required to submit their Competitive Bids to the Advance Agent pursuant to
paragraph (b) of this Section 3.01.

           (g) All notices required by this Section 3.01 shall be given in accordance
with Section 11.01.

ARTICLE IV

General Provisions Applicable to Loans

           SECTION 4.01. 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 to the account of the Administrative Agent or an
Affiliate thereof, most recently designated by it for such purpose by notice to
the Lenders, by 2:00 p.m., New York City time.

23

 

The Administrative Agent will make Loans available to the applicable Borrower
by promptly crediting the amounts so received, in like funds, to an account of
such Borrower maintained with the Administrative Agent in New York City. If a
Borrowing shall not occur on such date because any condition precedent herein
specified shall not have been met, the Administrative Agent shall return the
amounts so received to the respective Lenders.

           (b) Unless the Administrative Agent shall have received notice from a
Lender prior to the proposed date of any Borrowing that such Lender will not
make available to the Administrative Agent such Lender’s share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with paragraph (a) of this Section
4.01 and may, in reliance upon such assumption, make available to such Borrower
a corresponding amount. In such event, if a Lender has not in fact made its
share of the applicable Borrowing available to the Administrative Agent, then
the applicable Lender and the applicable Borrower severally agree to pay to the
Administrative Agent forthwith on demand such corresponding amount with
interest thereon, for each day from and including the date such amount is made
available to such Borrower to but excluding the date of payment to the
Administrative Agent, at (i) in the case of such Lender, the greater of the
Federal Funds Effective Rate and a rate determined by the Administrative Agent
in accordance with banking industry rules on interbank compensation or (ii) in
the case of such Borrower, the interest rate on the applicable Borrowing;
provided that no repayment by such Borrower pursuant to this sentence shall be
deemed to be a prepayment for purposes of Section 4.10. If such Lender pays
such amount to the Administrative Agent, then such amount shall constitute such
Lender’s Loan included in such Borrowing.

           SECTION 4.02. Interest Elections. (a) Each Borrowing initially shall be
of the Type specified in the applicable Borrowing Request and, in the case of a
Eurocurrency Borrowing, shall have an initial Interest Period as specified in
such Borrowing Request. Thereafter, the applicable Borrower or the Company (on
its own behalf or on behalf of any other Borrower) may elect to convert such
Borrowing to a different Type or to continue such Borrowing and, in the case of
a Eurocurrency Borrowing, may elect Interest Periods therefor, all as provided
in this Section. The applicable Borrower or the Company (on its own behalf or
on behalf of any other Borrower) may elect different options with respect to
different portions of the affected Borrowing, in which case each such portion
shall be allocated ratably among the Lenders holding the Loans comprising such
Borrowing, and the Loans comprising each such portion shall be considered a
separate Borrowing. This Section shall not apply to Competitive Borrowings,
which may not be converted or continued.

           (b) To make an election pursuant to this Section, the applicable Borrower
or the Company (on its own behalf or on behalf of any other Borrower) shall
notify the Administrative Agent of such election by telephone by the time that
a Borrowing Request would be required under Section 2.03 if the applicable
Borrower or the Company (on its own behalf or on behalf of any other Borrower)
were requesting a Borrowing of the Type resulting from such election to be made
on the effective date of such election. Each such telephonic Interest Election
Request shall be irrevocable and shall be confirmed promptly by hand delivery
or telecopy to the Administrative Agent of
a written Interest Election Request in a form approved by the
Administrative Agent and signed by the Company or the Applicable Borrower.

24

 

           (c) Each telephonic and written Interest Election Request shall specify
the following information in compliance with Section 2.03:

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

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

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

     (iv) if the resulting Borrowing is a Eurocurrency 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 Eurocurrency Borrowing but
does not specify an Interest Period, then the applicable Borrower or the
Company (on its own behalf or on behalf of any other Borrower) shall be deemed
to have selected an Interest Period of one month’s duration.

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

           (e) If the Company or the applicable Borrower fails to deliver a timely
Interest Election Request with respect to a Eurocurrency 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 be converted to an ABR Borrowing.

           SECTION 4.03. Termination and Reduction of Commitments. (a) Unless
previously terminated, the Commitments shall terminate on the Termination Date.

           (b) The Company may at any time terminate, or from time to time reduce,
the Commitments; provided that (i) each reduction of the Commitments shall be
in an amount that is an integral multiple of $1,000,000 and not less than
$3,000,000 and (ii) the Company shall not terminate or reduce the Commitments
if, after giving effect to any concurrent prepayment of the Loans, (i) the
outstanding Revolving Credit Exposure would exceed the Commitments or (ii) the
sum of the Revolving Credit Exposures plus the Competitive Loan Exposures would
exceed the total Commitments.

           (c) The Company shall notify the Administrative Agent, of any election to
terminate or reduce the Commitments under paragraph (b) of this Section at
least three Business Days prior to the effective date of such termination or
reduction, specifying such election and the effective date thereof. Promptly
following receipt of any
notice, the Administrative Agent or an affiliate thereof shall advise the
applicable Lenders of the contents thereof. Each notice

25

 

delivered by the Company pursuant to this Section shall be irrevocable;
provided that a notice of termination of any Commitments delivered by the
Company may state that such notice is conditioned upon the effectiveness of
other credit facilities, in which case such notice may be revoked by the
Company (by notice to the Administrative Agent on or prior to the specified
effective date) if such condition is not satisfied. Any termination or
reduction of the Commitments shall be permanent. Each reduction of any
Commitments shall be made ratably among the applicable Lenders in accordance
with their respective applicable Commitments.

           (d) The Company, may by written notice delivered to the Administrative
Agent not less than 20 and not more than 60 days prior to the Termination Date,
extend the Maturity Date with respect to all or any portion of the outstanding
Revolving Loans (“Term Loan Conversion Option”) from the Termination Date to a
date no later than the first anniversary of the Termination Date; provided
that (i) no Event of Default shall have occurred and be continuing and (ii) the
representations and warranties of each Credit Party set forth in the Loan
Documents shall be true and correct on and as of the Termination Date, and the
Administrative Agent shall have received, with a counterpart or copy for each
Lender, a certificate signed by the President, a Vice President or a Financial
Officer of the Company confirming the foregoing.

           SECTION 4.04. Repayment of Loans; Evidence of Debt. (a) Each of the
Borrowers hereby unconditionally promises to pay to the Administrative Agent
for the account of each Lender (i) on the Maturity Date, the then unpaid
principal amount of the Revolving Loans of such Lender and (ii) the then unpaid
principal amount of each Competitive Loan made by such Lender to such Borrower
on the last day of the Interest Period applicable to such Loan.

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

           (c) The Administrative Agent shall maintain a Register pursuant to
subsection 11.04(d) and an account for each applicable Lender in which it shall
record (i) the amount of each Loan made hereunder and any promissory note
evidencing such Loan, the Class and Type thereof and the Interest Period
applicable thereto, (ii) the amount of any principal or interest due and
payable or to become due and payable from each Borrower to each Lender
hereunder and (iii) the amount of any sum received by the Administrative Agent
hereunder for the account of the Lenders and each Lender’s share thereof.

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

           (e) Any Lender may request that Loans of any Class made by it be evidenced
by a promissory note. In such event, the applicable Borrower shall prepare,
execute and deliver to such Lender a promissory note payable to the order of
such Lender (or, if requested by such

26

 

Lender, to such Lender and its registered assigns) and in a form approved by
the Administrative Agent. Thereafter, the Loans evidenced by such promissory
note and interest thereon shall at all times (including after assignment
pursuant to Section 11.04) be represented by one or more promissory notes in
such form payable to the order of the payee named therein (or, if such
promissory note is a registered note, to such payee and its assigns).

           SECTION 4.05. Prepayment of Loans. (a) A Borrower shall have the right at
any time and from time to time to prepay any Borrowing in whole or in part,
subject to prior notice in accordance with paragraph (b) of this Section;
provided that no Borrower shall have the right to prepay any Competitive Loan
without the prior consent of the Lender thereof.

           (b) A Borrower shall notify the Administrative Agent by telephone
(confirmed by telecopy) of any optional or mandatory prepayment hereunder (i)
in the case of prepayment of a Eurocurrency Borrowing, not later than 12:00
noon, New York City time, three Business Days before the date of prepayment,
and (ii) in the case of prepayment of an ABR Borrowing, not later than 12:00
noon, New York City time, one Business Day before the date of prepayment. Each
such notice shall be irrevocable and shall specify the prepayment date and the
principal amount of each Borrowing or portion thereof to be prepaid and, in the
case of a mandatory prepayment, a reasonably detailed calculation of the amount
of such prepayment; provided that, if a notice of prepayment is given in
connection with a conditional notice of termination of any Commitments as
contemplated by Section 4.03, then such notice of prepayment may be revoked if
such notice of termination is revoked in accordance with Section 4.03.
Promptly following receipt of any such notice relating to a Borrowing, the
Administrative Agent shall advise the applicable Lenders of the contents
thereof. Each partial prepayment of any Borrowing shall be in an amount that
would be permitted in the case of an advance of a Borrowing of the same Class
and Type as provided in Section 2.02, except as necessary to apply fully the
required amount of a mandatory prepayment. Each prepayment of a Borrowing shall
be applied ratably to the Loans included in the prepaid Borrowing. Prepayments
shall be accompanied by accrued interest to the extent required by Section
4.07.

           (c) In the event and on each occasion that the Company or any Subsidiary
receives any Net Cash Proceeds from a Permitted Receivables Securitization, the
Company shall promptly after such Net Cash Proceeds are received, prepay the
Term Loans in an aggregate amount equal to such Net Cash Proceeds. After the
payment in full of all outstanding Term Loans, the aggregate Revolving
Commitments (as defined in the Revolving Credit and Term Loan Agreement) will
be automatically and permanently reduced by the amount of any Net Cash Proceeds
so received (or, following prepayment in full of the Term Loans, so remaining).
Following the reduction in full of the Revolving
Commitments under the Revolving Credit and Term Loan Agreement, the
aggregate Commitments hereunder will be automatically and permanently reduced
by the amount of any Net Cash Proceeds so received (or, following the reduction
in full of the Revolving Commitments under the Revolving Credit and Term Loan
Agreement, so remaining).

           (d) In the event and on each occasion that the Company or any Subsidiary
receives any Net Cash Proceeds from a Permitted Securities Issuance, the
Company shall promptly after such Net Cash Proceeds are received, prepay the
Term Loans in an aggregate amount equal to such Net Cash Proceeds. After the
payment in full of all outstanding Term

27

 

Loans, the aggregate Revolving Commitments (as defined in the Revolving Credit
and Term Loan Agreement) will be automatically and permanently reduced by the
amount of any Net Cash Proceeds so received (or, following prepayment in full
of the Term Loans, so remaining) less the aggregate amount, as of the date of
such Permitted Securities Issuance, by which the Revolving Commitments have
been reduced or terminated pursuant to Section 4.03(b). Following the
reduction in full of the Commitments under the Revolving Credit and Term Loan
Agreement, the aggregate Commitments hereunder will be automatically and
permanently reduced by the amount of any Net Cash Proceeds so received (or,
following the reduction in full of the Revolving Commitments under the
Revolving Credit and Term Loan Agreement, so remaining).

           (e) If at any time for any reason the sum of the total Revolving Credit
Exposures plus the total Competitive Loan Exposures exceeds the total
Commitments then in effect, the Borrowers shall, as soon as practicable but in
no event later than the Business Day after learning thereof, prepay Revolving
Loans in an aggregate principal amount equal to the amount of such excess.

           SECTION 4.06. Fees. (a) The Company agrees to pay to the Administrative
Agent for the account of each Lender a facility fee, which shall accrue at the
facility fee rate set forth in the Pricing Grid from time to time on the daily
amount of the Commitments of such Lender (whether used or unused) and,
following the Termination Date, on the Revolving Credit Exposure of such
Lender, during the period from and including the Effective Date to but
excluding the Maturity Date; provided that, if such Lender continues to have
any Revolving Credit Exposure after the Maturity Date, then such facility fee
shall continue to accrue on the daily amount of such Lender’s Revolving Credit
Exposure from and including the Maturity Date to but excluding the date on
which such Lender ceases to have any Revolving Credit Exposure. Accrued
facility fees shall be payable in arrears on the last day of March, June,
September and December of each year, and on the date on which the Commitments
terminate and on the Maturity Date, commencing on the first such date to occur
after the Effective Date; provided that any facility fees accruing after the
Maturity Date shall be payable on demand. All facility 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).

           (b) The Company agrees to pay to the Administrative Agent, for its own
account, the administrative, auction and other fees separately agreed upon
between the Company and the Administrative Agent (collectively, the
“Administrative Fees”).

           (c) All fees payable hereunder shall be paid on the dates due, in
immediately available funds, to the Administrative Agent for distribution, in
the case of facility fees and participation fees, to the Lenders. Fees paid
shall not be refundable under any circumstances.

           SECTION 4.07. Interest. (a) The Loans comprising each ABR Borrowing shall
bear interest at the Alternate Base Rate plus the Applicable Margin.

           (b) The Loans comprising each Eurocurrency Borrowing shall bear interest
(i) in the case of a Eurocurrency Loan, at the Adjusted Eurocurrency Rate for
the Interest Period in effect for such Borrowing plus the Applicable Margin or
(ii) in the case of a Eurocurrency

28

 

Competitive Loan, at the Adjusted Eurocurrency Rate for the Interest Period in
effect for such Borrowing plus (or minus, as applicable) the Competitive Loan
Margin applicable to such Loan.

           (c) Each Fixed Rate Loan shall bear interest at the Fixed Rate applicable
to such Loan.

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

           (e) Accrued interest on each Loan shall be payable in arrears on each
Interest Payment Date for such Loan and upon 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 prior to the end of
the Availability Period), accrued interest on the principal amount repaid or
prepaid shall be payable on the date of such repayment or prepayment and (iii)
in the event of any conversion of any Eurocurrency 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.

           (f) All interest hereunder shall be computed on the basis of a year of 360
days, except that interest computed by reference to the Alternate Base Rate at
time when the Alternate Base Rate is based on clause (a) of the first sentence
of the definition of Alternate Base Rate shall be computed on the basis of a
year of 365 days (or 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
Alternate Base Rate or Eurocurrency Rate shall be determined by the
Administrative Agent, and such determination shall be conclusive absent
manifest error.

           SECTION 4.08. Alternate Rate of Interest. If prior to the commencement of
any Interest Period for a Eurocurrency Borrowing:

           (a) the Administrative Agent shall have determined (which determination
shall be made in good faith and shall be conclusive absent manifest error) that
adequate and reasonable means do not exist for ascertaining the Eurocurrency
Rate for such Interest Period; or

           (b) the Administrative Agent is advised by the Required Lenders (or, in
the case of a Eurocurrency Competitive Loan, the Lender that is required to
make such Loan) that the Eurocurrency Rate for such Interest Period will not
adequately and fairly reflect the cost to such Lenders (or Lender) of making or
maintaining their Loans (or its Loan) included in such Borrowing for such
Interest Period;

then the Administrative Agent shall give notice thereof to the Company (on its
own behalf or on behalf of the applicable Borrower) and the Lenders by
telephone or telecopy as promptly as practicable thereafter and, until the
Administrative Agent notifies the Company (on its own

29

 

behalf or on behalf of the applicable Borrower) and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurocurrency Borrowing shall be
ineffective, (ii) if any Borrowing Request requests a Eurocurrency Borrowing,
such Borrowing, shall be made as an ABR Borrowing and (iii) any request by the
Company (on its own behalf or on behalf of any other Borrower) or any other
Borrower for a Eurocurrency Competitive Borrowing shall be ineffective;
provided that (x) if the circumstances giving rise to such notice do not affect
all the Lenders, then requests by the Company for Eurocurrency Competitive
Borrowings may be made to Lenders that are not affected thereby and (y) if the
circumstances giving rise to such notice affect only one Type of Borrowing,
then the other Type of Borrowings shall be permitted.

           SECTION 4.09. 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 for any such
reserve requirement which is reflected in the Adjusted Eurocurrency
Rate); or

     (ii) impose on any Lender or the London interbank market any other
condition affecting this Agreement or Eurocurrency Loans or Fixed Rate
Loans made by such Lender;

and the result of any of the foregoing shall be to increase the cost to such
Lender of
making or maintaining any Eurocurrency Loan or Fixed Rate Loan (or of
maintaining its obligation to make any such Loan) by an amount deemed by such
Lender to be material or to reduce the amount of any sum received or receivable
by such Lender hereunder (whether of principal, interest or otherwise) by an
amount deemed by such Lender to be material, then the applicable Borrower will
pay to such Lender such additional amount or amounts as will compensate such
Lender for such additional costs actually incurred or reduction actually
suffered.

           (b) If any Lender 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 capital or on the capital of such Lender’s holding company, if
any, as a consequence of this Agreement or the Loans made by such Lender to a
level below that which such Lender or such Lender’s holding company could have
achieved but for such Change in Law (taking into consideration such Lender’s
policies and the policies of such Lender’s holding company with respect to
capital adequacy) by an amount deemed by such Lender to be material, then from
time to time the applicable Borrower will pay to such Lender such additional
amount or amounts as will compensate such Lender or such Lender’s holding
company for any such reduction suffered.

           (c) A certificate of a Lender setting forth the amount or amounts
necessary to compensate such Lender or its holding company as specified in
paragraph (a) or (b) of this Section and setting forth in reasonable detail the
manner in which such amount or amounts shall have been determined, shall be
delivered to the applicable Borrower and shall be conclusive absent manifest
error. The applicable Borrower shall pay such Lender the amount shown as due on
any such certificate within 10 days after receipt thereof.

30

 

           (d) Failure or delay on the part of any Lender to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender’s right
to demand such compensation; provided that the Borrowers shall not be required
to compensate a Lender pursuant to this Section for any increased costs or
reductions incurred more than 90 days prior to the date that such Lender
notifies such Borrower of the Change in Law giving rise to such increased costs
or reductions and of such Lender’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 90-day period referred to above shall be
extended to include the period of retroactive effect thereof.

           (e) Notwithstanding the foregoing provisions of this Section, a Lender
shall not be entitled to compensation pursuant to this Section in respect of
any Competitive Loan if the Change in Law that would otherwise entitle it to
such compensation shall have been publicly announced prior to submission of the
Competitive Bid pursuant to which such Loan was made. The obligations of the
Borrowers under this Section shall survive the termination of this Agreement
and the payment of the Loans and all other amounts payable hereunder.

           SECTION 4.10. Break Funding Payments. In the event of (a) the payment or
prepayment of any principal of any Eurocurrency Loan or Fixed Rate Loan other
than on the last day of an Interest Period applicable thereto (including as a
result of an Event of Default), (b) the conversion of any Eurocurrency Loan
other than on the last day of the Interest Period applicable thereto, (c) the
failure to borrow, convert, continue or prepay any Loan on the date specified
in any notice delivered pursuant hereto (regardless of whether such notice may
be revoked under Section 4.05(b) and is revoked in accordance therewith), (d)
the failure to borrow any Competitive Loan after accepting the Competitive Bid
to make such Loan or (e) the assignment of any Eurocurrency Loan or Fixed Rate
Loan other than on the last day of the Interest Period applicable thereto as a
result of a request by any Borrower pursuant to Section 4.13, then, in any such
event, the applicable Borrower shall compensate each Lender for the
out-of-pocket loss, cost and expense attributable to such event. In the case of
a Eurocurrency Loan, such loss, cost or expense to any Lender shall be deemed
to include an amount determined by such Lender to be the present value of the
excess, if any, of (i) its cost of obtaining the funds for the Loan being paid,
prepaid, refinanced or not borrowed (assumed to be the Eurocurrency Rate
applicable thereto) for the period from the date of such payment, prepayment,
refinancing or failure to borrow or refinance to the last day of the Interest
Period for such Loan (or, in the case of a failure to borrow or refinance the
Interest Period for such Loan which would have commenced on the date of such
failure) over (ii) the amount of interest (as reasonably determined by such
Lender) that would be realized by such Lender in reemploying the funds so paid,
prepaid or not borrowed or refinanced for such period or Interest Period, as
the case may be. A certificate of any Lender setting forth any amount or
amounts that such Lender is entitled to receive pursuant to this Section and
setting forth in reasonable detail the manner in which such amount or amounts
shall have been determined shall be delivered to the applicable Borrower and
shall be conclusive absent manifest error. Such Borrower shall pay such Lender
the amount shown as due on any such certificate within 10 days after receipt
thereof. The obligations of the Borrowers under this Section shall survive the
termination of this Agreement and the payment of the Loans and all other
amounts payable hereunder.

31

 

           SECTION 4.11. Taxes. (a) Any and all payments to the Lenders or the Administrative Agent hereunder
by a Borrower or on behalf of any Borrower shall be made free and clear of and
without deduction for any and all current or future Taxes or Other Taxes (as
defined in Section 4.11(b) below) excluding (i) Taxes imposed on the
Administrative Agent or any Lender (or participant) as a result of a present or
former connection between the Administrative Agent or such Lender (or
participant) and the jurisdiction of the Governmental Authority imposing such
Tax or any political subdivision or taxing authority thereof or therein (other
than as a result of entering into this Agreement, performing any obligations
hereunder, receiving any payments hereunder or enforcing any rights hereunder)
and (ii) any Taxes that are attributable solely to the failure of any Lender to
comply with Section 4.11(g) or 4.11(h) (all such nonexcluded Taxes or Other
Taxes collectively or individually, “Non-Excluded Taxes”). If the relevant
Borrower shall be required to deduct any Non-Excluded Taxes from or in respect
of any sum payable hereunder to any Lender or the Administrative Agent, (i) the
sum payable shall be increased by the amount (an “Additional Amount”) necessary
so that after making all required deductions (including deductions applicable
to Additional Amounts payable under this Section 4.11)
such Lender or the Administrative Agent (as the case may be) shall receive an
amount equal to the sum it would have received had no such deductions been
made, (ii) the relevant Borrower shall make such deductions and (iii) the
relevant Borrower shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.

           (b) In addition, the relevant Borrower (or the Guarantors, as applicable)
shall pay to the relevant Governmental Authority in accordance with applicable
law any current or future stamp, intangibles or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment
made hereunder or from the execution, delivery or registration of, or otherwise
with respect to, this Agreement or any other Loan Document that are imposed by
a Governmental Authority in a jurisdiction in which the relevant Borrower (or
Guarantor, as applicable) is incorporated, organized, managed and controlled or
considered to have its seat or otherwise has a connection (other than as a
result of entering into this Agreement, performing any obligations hereunder,
making payments hereunder or enforcing any rights hereunder (“Other Taxes”).

           (c) The relevant Borrower (or Guarantor, as applicable) shall indemnify
each Lender (or participant) and the Administrative Agent for the full amount
of Non-Excluded Taxes paid by such Lender (or participant) or the
Administrative Agent, as the case may be, and any liability (including
penalties, interest and expenses (including reasonable attorney’s fees and
expenses)) arising therefrom or with respect thereto, whether or not such
Non-Excluded Taxes were correctly or legally asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or
liability prepared by a Lender, or the Administrative Agent on its behalf and
setting forth in reasonable detail the manner in which such amount shall have
been determined, absent manifest error, shall be final, conclusive and binding
for all purposes. Such indemnification shall be made within 30 days after the
date the Lender or the Administrative Agent, as the case may be, makes written
demand therefor, which written demand shall be made within 60 days of the date
such Lender or the Administrative Agent receives written demand for payment of
such Non-Excluded Taxes from the relevant Governmental Authority.

           (d) If a Lender (or participant) or the Administrative Agent receives a
refund, which in its reasonable judgment is in respect of any Non-Excluded
Taxes as to which it has

32

 

been indemnified by the relevant Borrower or with respect to which the relevant
Borrower has paid Additional Amounts pursuant to this Section 4.11, it shall
within 30 days from the date of such receipt pay over such refund to the
relevant Borrower (but only to the extent of indemnity payments made, or
Additional Amounts paid, by the relevant Borrower under this Section 4.11 with
respect to the Non-Excluded Taxes giving rise to such refund), net of all
out-of-pocket expenses of such Lender (or participant) or the Administrative
Agent and without interest (other than interest paid by the relevant
Governmental Authority with respect to such refund); provided, however, that
the relevant Borrower, upon the request of such Lender (or participant) or the
Administrative
Agent, agrees to repay the amount paid over to the relevant Borrower (plus
penalties, interest or other charges) to such Lender (or participant) or the
Administrative Agent in the event such Lender (or participant) or the
Administrative Agent is required to repay such refund to such Governmental
Authority.

           (e) As soon as practicable after the date of any payment of Non-Excluded
Taxes by the relevant Borrower to the relevant Governmental Authority, the
relevant Borrower will deliver to the Administrative Agent at its address
referred to in Section 11.01, the original or a certified copy of a receipt
issued by such Governmental Authority evidencing payment thereof.

           (f) Without prejudice to the survival of any other agreement contained
herein, the agreements and obligations contained in this Section 4.11 shall
survive the payment in full of the principal of and interest on all Loans made
hereunder.

           (g) Each Lender (or participant) that is not a United States Person as
defined in Section 7701(a)(30) of the Code (a “Non-U.S. Lender”) shall deliver
to the Company and the Administrative Agent two copies of either (i) United
States Internal Revenue Service Form W-8BEN or W8ECI or any subsequent or
substitute versions thereof or successors thereto or (ii) in the case of a
Non-U.S. Lender claiming exemption from U.S. Federal withholding tax under
Section 871 (h) or 881 (c) of the Code with respect to payments of “portfolio
interest,” a Form W-8BEN, or any subsequent or substitute versions thereof or
successors thereto (and, if such Non-U.S. Lender delivers a Form W-8BEN
pursuant to this clause (ii), a certificate representing that such Non-U.S.
Lender is not a bank for purposes of Section 881(c)(3)(A) of the Code, is not a
10 percent shareholder (within the meaning of Section 881(c)(3)(B) of the Code)
of the Company and is not a controlled foreign corporation related to the
Company (within the meaning of Section 881(c)(3)(C) of the Code)), in each case
properly completed and duly executed by such Non-U.S. Lender claiming complete
exemption from, or reduced rate of, U.S. Federal withholding tax on payments by
the Company under this Agreement. Each Lender (or participant) that is a U.S.
Person as defined in Section 7701(a)(30) of the Code shall deliver to the
Company and the applicable Administrative Agent two copies of Internal Revenue
Service Form W-9, or any subsequent or substitute versions thereof or
successors thereto, certifying that such Lender (or participant) is entitled to
a complete exemption from U.S. Federal backup withholding tax on payments made
pursuant to this Agreement. Such forms shall be delivered by each Lender on or
before the date it becomes a party to this Agreement (or, in the case of a
participant, on or before the date such participant becomes a participant
hereunder) and on or before the date, if any, such Lender changes its
applicable lending office by designating a different lending office (a “New
Lending Office”), unless each of the applicable lending office prior to such
designation and the New Lending Office are located within the United States. In
addition, each Lender shall deliver such forms promptly upon the obsolescence
or invalidity of

33

 

any form previously delivered by such Lender. Notwithstanding any other
provision of this Section 4.11(g), a Lender shall not be required to deliver
any form pursuant to this Section 4.11(g) that such Lender is not legally able
to deliver.

           (h) A Lender (or participant) that is entitled to an exemption from or
reduction of non-U.S. withholding tax under the law of the jurisdiction in
which a Borrower (other than the Company) is located, or any treaty to which
such jurisdiction is a party, with respect to payments under this Agreement
shall deliver to such Borrower (with a copy to the Administrative Agent), at
the time or times prescribed by applicable law or reasonably requested by such
Borrower, such properly completed and executed documentation prescribed by
applicable law as will permit such payments to be made without withholding or
at a reduced rate, provided that such Lender (or participant) is legally
entitled to complete, execute and deliver such documentation and in such
Lender’s reasonable judgment such completion, execution or submission would not
materially prejudice the legal position of such Lender (or participant).

           (i) The relevant Borrower shall not be required to indemnify any Lender,
or to pay any Additional Amounts to any Lender, in respect of any withholding
tax pursuant to paragraph (a) or (c) above to the extent that (i) the
obligation to withhold amounts with respect to such withholding tax was in
effect and would apply to amounts payable to such Lender on the date such
Lender became a party to this Agreement (or, in the case of a participant, on
the date such participant became a participant hereunder) or, with respect to
payments to a New Lending Office, the date such Lender designated such New
Lending Office with respect to a Loan or, with respect to payments by a
Borrower pursuant to a Competitive Loan, as of the date the Company accepts a
Competitive Bid pursuant to Section 3.01(d); provided, however, that this
clause (i) shall not apply to any Lender (or participant) if the assignment,
participation, transfer or designation of a New Lending Office was made at the
request of the relevant Borrower; and provided further, however, that this
clause (i) shall not apply (x) to the extent the indemnity payment or
Additional Amounts any Lender (or participant) would be entitled to receive
(without regard to this clause (i)) do not exceed the indemnity payment or
Additional Amounts that the Lender (or participant) making the assignment,
participation, transfer or designation of such New Lending Office would have
been entitled to receive in the absence of such assignment, participation,
transfer or designation or (y) to the extent the obligation to withhold such
amounts is an obligation of, or an obligation in respect of payments made by, a
Foreign Borrowing Subsidiary, or (ii) the obligation to pay such Additional
Amounts would not have arisen but for a failure by such Lender (or participant)
to comply with the provisions of paragraph (g) or (h) of this Section 4.11.

           (j) Any Lender (or participant) claiming any indemnity payment or
Additional Amounts payable pursuant to this Section 4.11 shall use reasonable
efforts (consistent with legal and regulatory restrictions) to file any
certificate or document reasonably requested in writing by the relevant
Borrower or to change the jurisdiction of its applicable lending office if the
making of such a filing or change would avoid the need for or reduce the amount
of any such indemnity payment or Additional Amounts that may thereafter accrue
and would not, in the sole determination of such Lender (or participant), be
otherwise disadvantageous to such Lender (or participant).

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           (k) Nothing contained in this Section 4.11 shall require any Lender (or
participant) or the Administrative Agent to make available any of its tax
returns (or any other information that it deems to be confidential or
proprietary).

           SECTION 4.12. Payments Generally; Pro Rata Treatment; Sharing of Setoffs.
(a) Each Borrower shall make each payment required to be made by it hereunder
(whether of principal, interest, fees, or of amounts payable under Section
4.09, 4.10 or 4.11, or otherwise) prior to 3:00 p.m., New York City time at the
place of payment, on the date when due, in immediately available funds, without
setoff or counterclaim. Any amounts received after such time on any date may,
in the discretion of the Administrative Agent, be deemed to have been received
on the next succeeding Business Day for purposes of calculating interest
thereon. All such payments shall be made to the Administrative Agent at its
office referred to in Section 11.01, or such other location as the
Administrative Agent shall designate from time to time, except that payments
pursuant to Sections 4.09, 4.10 or 4.11 and 11.05 shall be made directly to the
Persons entitled thereto. The Administrative 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 hereunder shall be
due on a day that is not a Business Day, the date for payment shall be extended
to the next succeeding Business Day, and, in the case of any payment accruing
interest, interest thereon shall be payable for the period of such extension.
All payments hereunder shall be made in Dollars.

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

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

35

 

against such Borrower rights of setoff and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of such
Borrower in the amount of such participation.

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

          (e) If any Lender shall fail to make any payment required to be made by it
pursuant to Section 4.01(b) or 4.11(d), then the Administrative Agent may, in
its discretion (notwithstanding any contrary provision hereof), apply any
amounts thereafter received by the Administrative Agent for the account of such
Lender to satisfy such Lender’s obligations under such Sections until all such
unsatisfied obligations are fully paid.

          SECTION 4.13. Mitigation Obligations; Replacement of Lenders. (a) If any
Lender requests compensation under Section 4.09, or if any Borrower is required
to pay any Additional Amount to any Lender or any Governmental Authority for
the account of any Lender pursuant to Section 4.11, then such Lender shall use
reasonable efforts to file any certificate or document requested by the
applicable Borrower (consistent with legal and regulatory restrictions), 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 filing,
designation or assignment (i) would eliminate or reduce amounts payable
pursuant to Section 4.09 or 4.11, as the case may be, in the future and
(ii) would not otherwise be disadvantageous to such Lender.

          (b) If any Lender requests compensation under Section 4.09, or if
any
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 4.11,
or if any Lender defaults in its obligation to fund Loans hereunder, then such
Borrower may, upon notice to such Lender and the Administrative Agent, require
such Lender to assign and delegate, without recourse (in accordance with and
subject to the restrictions contained in Section 11.04), all its interests,
rights and obligations under this Agreement (other than any outstanding
Competitive Loans held by it and any and all rights and interests related
thereto) to an assignee that shall assume such obligations (which assignee may
be another
Lender, if a Lender accepts such assignment); provided that (i) such Borrower
shall have received the prior written consent of the Administrative Agent which
consent shall not unreasonably be withheld, (ii) such Lender shall have
received payment of an amount equal to the outstanding principal of its
Revolving Loans, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder, from the

36

 

assignee (to the extent of such outstanding principal and accrued interest and
fees) or such Borrower (in the case of all other amounts) and (iii) in the case
of any such assignment resulting from a claim for compensation under Section
4.09 or payments required to be made pursuant to Section 4.10, such assignment
will result in a reduction in such compensation or payments.

ARTICLE V

Representations and Warranties

          The Company represents and warrants to each of the Lenders and the
Administrative Agent that:

          SECTION 5.01. Organization; Powers. Each Credit Party (a) is duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, (b) has all requisite power and authority to
own its property and assets and to carry on its business as now conducted and
as proposed to be conducted and (c) is qualified to do business in every
jurisdiction where such qualification is required, except where the failure so
to qualify would not result in a Material Adverse Effect. Each Credit Party has
the corporate power and authority to execute and deliver this Agreement (or, in
the case of the Borrowing Subsidiaries, the Borrowing Subsidiary Agreements),
to perform its obligations under this Agreement and to borrow hereunder.

          SECTION 5.02. Authorization.
The Transactions (a) are within each Credit
Party’s corporate powers and have been duly authorized by all requisite
corporate action and (b) do not (i) violate (A) any provision of any law,
statute, rule or regulation (including, without limitation, the Margin
Regulations), (B) any provision of the certificate of incorporation or other
constitutive documents or by-laws of the Company or any Subsidiary, (C) any
order of any Governmental Authority or (D) any provision of any indenture,
agreement or other instrument to which the Company or any Subsidiary is a party
or by which it or any of its property is or may be bound, (ii) conflict with,
result in a breach of or constitute (alone or with notice or lapse of time or
both) a default under any such indenture, agreement or other instrument or
(iii) result in the creation or imposition of any lien upon any property or
assets of the Company or any Subsidiary other than, in the case of clauses
(i)(A), (i)(C), (i)(D), (ii) and (iii), any such violations, conflicts,
breaches, defaults or liens that, individually or in the aggregate, would not
have a
Material Adverse Effect.

          SECTION 5.03. Enforceability. This Agreement has been duly executed and
delivered by each of the Borrowers and constitutes, and each other Loan
Document constitutes or, when executed and delivered, will constitute a legal,
valid and binding obligation of each Credit Party thereto, enforceable in
accordance with its terms (subject, as to enforceability, to applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting creditors’ rights generally and to general principles of equity
(regardless of whether such enforceability is considered in a proceeding at law
or in equity)).

          SECTION 5.04. Governmental Approvals. No action, consent or approval of,
registration or filing with or other action by any Governmental Authority is
required in

37

 

connection with the Transactions except such as have been obtained or made and
are in full force and effect or except for the failure of which to obtain could
not reasonably be expected to have a Material Adverse Effect.

          SECTION 5.05. Financial Statements; No Material Adverse Effect. (a) The
Company has heretofore furnished to the Administrative Agent and the Lenders
its consolidated balance sheet and statements of income, stockholders’ equity
and cash flows (i) as of and for the fiscal year ended December 31, 2003,
reported on by PricewaterhouseCoopers LLP, independent public accountants, and
(ii) as of and for the fiscal quarter and the portion of the fiscal year ended
March 31, 2004, certified by its chief financial officer. Such financial
statements present fairly, in all material respects, the financial position and
results of operations and cash flows of the Company and its consolidated
Subsidiaries as of such dates and for such periods in accordance with GAAP,
subject to year-end audit adjustments and the absence of footnotes in the case
of the statements referred to in clause (ii) above.

          (b) Since December 31, 2003, there has been no material adverse effect on
the business, operations, properties or financial condition of the Company and
its Subsidiaries, taken as a whole.

          SECTION 5.06. Litigation, Compliance with Laws. (a) There are no actions,
proceedings or investigations filed or (to the knowledge of the Company)
threatened against the Company or any Subsidiary in any court or before any
Governmental Authority or arbitration board or tribunal which question the
validity or legality of this Agreement, the Transactions or any action taken or
to be taken pursuant to this Agreement and no order or judgment has been issued
or entered restraining or enjoining the Company from the execution, delivery or
performance of this Agreement nor is there any other action, proceeding or
investigation filed or (to the knowledge of the Company) threatened against the
Company or any Subsidiary in any court or before any
Governmental Authority or arbitration board or tribunal as to which there
is a reasonable likelihood of an adverse determination and that, if adversely
determined, would be reasonably likely to result in a Material Adverse Effect.

          (b) Neither the Company nor any Subsidiary is in violation of any law,
rule or regulation, or in default with respect to any judgment, writ,
injunction or decree of any Governmental Authority, where such violation or
default would be reasonably likely to result in a Material Adverse Effect.

          SECTION 5.07. Federal Reserve Regulations. No part of the proceeds of any
Loan will be used, whether directly or indirectly, and whether immediately,
incidentally or ultimately, for any purpose which entails a violation of, or
which is inconsistent with, the provisions of the Margin Regulations.

          SECTION 5.08. Taxes. The Company and the Subsidiaries have filed or caused
to be filed all Federal and material state, local and foreign Tax returns which
are required to be filed by them, and have paid or caused to be paid all
material Taxes required to have been paid by them, other than any Taxes or
assessments the validity of which is being contested in good faith by
appropriate proceedings, and with respect to which appropriate accounting
reserves have, to the extent required by GAAP, been set aside.

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     SECTION 5.09. Employee
Benefit Plans.
The present
aggregate value
of
accumulated benefit obligations of each Plan and each foreign employee pension
benefit plan required to be funded (based on those assumptions used for
disclosure of such obligations in corporate financial statements in accordance
with GAAP) did not, as of the most recent statements available, exceed the
aggregate value of the assets for each plan by an amount in the aggregate for
all such plans that would reasonably be expected to have a Material Adverse
Effect. Except as would not individually or in the aggregate be reasonably
expected to have a Material Adverse Effect, (a) no ERISA Termination Event has
occurred or (b) each Plan has been established and administered in accordance
with its terms and in compliance with the applicable provisions of ERISA, the
Code and other applicable laws, rules and regulations.

     SECTION 5.10. Environmental and Safety Matters.
Other than exceptions to
any of the following that would not in the aggregate have a Material Adverse
Effect: (a) the Company and the Subsidiaries comply and have complied with all
applicable Environmental and Safety Laws; (b) there are and have been no
Hazardous Substances at any property owned, leased or operated by the Company
now or in the past, or at any other location, that could reasonably be expected
to result in liability of the Company or any Subsidiary under any Environmental
and Safety Law or result in costs to any of them arising out of any
Environmental and Safety Law; (c) there are no past, present, or, to the
knowledge of the Company and the Subsidiaries, anticipated future events,
conditions, circumstances, practices, plans, or legal requirements that could
reasonably be expected to prevent the Company or any of the Subsidiaries from,
or increase the costs to the Company or any of the Subsidiaries of, complying
with applicable Environmental and Safety Laws or obtaining or renewing all
material permits, approvals, authorizations, licenses or permissions required
of any of them pursuant to any such law; and (d) neither the Company nor any of
the Subsidiaries has retained or assumed, by contract or operation of law, any
liability, fixed or contingent, under any Environmental and Safety Law.

     SECTION 5.11. Properties. (a) Each of the Company and its Subsidiaries has
good title to, or valid leasehold interests in, all its real and personal
property that are material to the business of the Company and its Subsidiaries
taken as a whole, except for defects in title that could not reasonably be
expected to result in a Material Adverse Effect.

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

     SECTION 5.12. Investment
and Holding
Company Status.
Neither the
Company nor any of its Subsidiaries is (a) an “investment company” as defined
in, or subject to regulation under, the Investment Company Act of 1940 or (b) a
“holding company” as defined in, or subject to regulation under, the Public
Utility Holding Company Act of 1935.

39

 

ARTICLE VI

Conditions

          SECTION 6.01. Effective Date. The effectiveness of this Agreement shall
be subject to the satisfaction of each of the following conditions:

          (a) The Administrative 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 Administrative Agent
(which may include telecopy transmission of a signed signature page of this
Agreement) that such party has signed a counterpart of this Agreement.

          (b) The Existing 364-Day Credit Agreement and all commitments of the
lenders thereunder shall have been or shall simultaneously be terminated, all
amounts outstanding thereunder shall have been or shall simultaneously be paid
in full and the Administrative Agent shall have received evidence satisfactory
in form and substance to it demonstrating such termination and payment.

          (c) The Administrative Agent shall have received, with a counterpart or
copy for each Lender, such documents and certificates as the Administrative
Agent or its counsel may reasonably request relating to the organization,
existence and good standing of each Credit Party, the authorization of the
Transactions and other legal matters relating to the Credit Parties, the Loan
Documents or the Transactions, all in form and substance reasonably
satisfactory to the Administrative Agent and its counsel.

          (d) The representations and warranties of each Credit Party set forth in
the Loan Documents shall be true and correct on and as of the date hereof,
except to the extent such representations and warranties expressly relate to an
earlier or later date and no Default shall have occurred and be continuing, and
the Administrative Agent shall have received, with a counterpart or copy for
each Lender, a certificate signed by the President, a Vice President or a
Financial Officer of the Company confirming the foregoing.

          (e) The Administrative Agent shall have received all fees and other
amounts due and payable on or prior to the date hereof, including, to the
extent invoiced, reimbursement or payment of all out-of-pocket expenses
required to be reimbursed or paid by any Credit Party hereunder or under any
Loan Document.

          (f) The Administrative Agent (or its counsel) shall have received a
favorable written opinion (addressed to the Administrative Agent and the
Lenders and dated the date hereof) from Baker & Daniels, U.S. counsel for the
Borrowers, substantially in the form of Exhibit C and covering such other
matters relating to the Credit Parties, the Loan Documents or the Transactions
as the Administrative Agent or the Lenders shall reasonably request. The
Company hereby requests such counsel to deliver such opinion.

          (g) The Revolving Credit and Term Loan Agreement shall have been
executed and delivered by each of the parties thereto.

40

 

          (h) The Lenders shall have received, to the extent requested, all
documentation and other information required by regulatory authorities under
applicable “know your customer” and anti-money laundering rules and
regulations, including the U.S.A. Patriot Act.

          SECTION 6.02. Conditions to All Other Extensions of Credit. The obligation
of each Lender to make a Loan on the occasion of any Borrowing (other than a
Borrowing made solely to refinance outstanding Borrowings that does not
increase the aggregate principal amount of the Loans of any Lender outstanding)
is subject to the satisfaction of the following conditions:

          (a) The Administrative Agent shall have received a Borrowing Request in
accordance with Section 2.03.

          (b) The Effective Date shall have occurred.

          (c) The representations and warranties of each Credit Party set forth in the
Loan Documents shall be true and correct on and as of the date of any such
Borrowing, except to the extent such representations and warranties expressly
relate to an earlier or later date.

          (d) At the time of and immediately after giving effect to such Borrowing,
as applicable, no Default shall have occurred and be continuing.

Each Borrowing shall be deemed to constitute a representation and warranty by
the Company on the date thereof as to the matters specified in paragraphs (c)
and (d) of this Section.

          SECTION 6.03. Initial
Borrowing by
Each Borrowing
Subsidiary. The
obligation of each Lender to make a Loan on the occasion of the first Borrowing
by each Borrowing Subsidiary is subject to the satisfaction of the condition
that the Administrative Agent (or its counsel) shall have received a Borrowing
Subsidiary Agreement properly executed by such Borrowing Subsidiary and the
Company.

ARTICLE VII

Affirmative Covenants

          The Company covenants and agrees with each Lender and the Administrative
Agent that so long as this Agreement shall remain in effect or the principal of
or interest on any Loan or any fees or any other amounts payable hereunder
shall be unpaid, unless the Required Lenders shall otherwise consent in
writing, it will, and will cause each of the Subsidiaries to, on and after the
Effective Date:

          SECTION 7.01. Existence. Do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate, partnership and/or
limited liability company existence and its rights and franchises that are
material to the business of the Company and its Subsidiaries as a whole, except
as expressly permitted under Section 8.01 or 8.06 and except, in the case of
any Subsidiary, where the failure to do so would not result in a Material
Adverse Effect.

41

 

          SECTION 7.02. Business and Properties.
Comply in all respects with all
applicable laws, rules, regulations and orders of any Governmental Authority
(including Environmental and Safety Laws and ERISA), whether now in effect or
hereafter enacted except instances that could not, in the aggregate, reasonably
be expected to result in a Material Adverse Effect; and at all times maintain
and preserve all property material to the conduct of the business of the
Company and its Subsidiaries as a whole and keep such property in good repair,
working order and condition and from time to time make, or cause to be made,
all needful and proper repairs, renewals, additions, improvements and
replacements thereto necessary in order that the business carried on in
connection therewith may be properly conducted at all times, except where the
failure to do so would not result in a Material Adverse Effect.

          SECTION 7.03. Financial
Statements, Reports,
Etc. Furnish
to the
Administrative Agent for distribution to each Lender:

          (a) within 105 days after the end of each fiscal year, its annual report
on Form 10-K as filed with the SEC, including its consolidated balance sheet
and the related consolidated earnings statement showing its consolidated
financial condition as of the close of such fiscal year and the consolidated
results of its operations during such
year, all audited by PricewaterhouseCoopers LLP or other independent
certified public accountants of recognized national standing selected by the
Company and accompanied by an opinion of such accountants to the effect that
such consolidated financial statements fairly present the Company’s financial
condition and results of operations on a consolidated basis in accordance with
GAAP;

          (b) within 60 days after the end of each of the first three fiscal
quarters of each fiscal year, its quarterly report on Form 10-Q as filed with
the SEC, including its unaudited consolidated balance sheet and related
consolidated earnings statement, showing its consolidated financial condition
as of the close of such fiscal quarter and the consolidated results of its
operations during such fiscal quarter and the then elapsed portion of the
fiscal year (and each delivery of such statements shall be deemed a
representation that such statements fairly present the Company’s financial
condition and results of operations on a consolidated basis in accordance with
GAAP, subject to normal year-end audit adjustments and the absence of
footnotes);

          (c) concurrently with any delivery of financial statements under paragraph
(a) or (b) above, a certificate of a Financial Officer (i) certifying that no
Event of Default or Default has occurred or, if such an Event of Default or
Default has occurred, specifying the nature and extent thereof and any
corrective action taken or proposed to be taken with respect thereto and (ii)
demonstrating in reasonable detail calculation of the covenants set forth in
Section 8.04 as of the last day of the period covered by such financial
statements;

          (d) promptly after the same become publicly available, copies of all
reports on Form 8-K filed by it with the SEC, or any Governmental Authority
succeeding to any of or all the functions of the SEC, or copies of all reports
distributed to its shareholders, as the case may be; and

          (e) promptly, from time to time, such other information as any Lender
shall reasonably request through the Administrative Agent, including any
additional information

42

 

relating to any one-time integration or transaction costs referred to in clause
(f) of the definition of the term “Consolidated EBITDA” (it being understood
that the Company shall not be required to provide any information or documents
which are subject to confidentiality provisions the nature of which prohibit
such disclosure).

Information required to be delivered pursuant to this Section shall be deemed
to have been delivered on the date on which the Company provides notice
(reasonably identifying where the applicable disclosure may be obtained) to the
Administrative Agent that such information has been posted on the Company’s
website on the internet at www.zimmer.com, or on the SEC’s website on the
internet at www.sec.gov, or at another website identified in such notice and
accessible by the Lenders without charge.

          SECTION 7.04. Insurance. Keep its insurable properties adequately insured
at all times by financially sound and reputable insurers (which may include
captive insurers), and maintain such other insurance or self insurance
(including product liability insurance), to such extent and against such risks,
including fire and other risks insured against by extended coverage, as is
customary with companies similarly situated and in the same or similar
businesses.

          SECTION 7.05. Obligations and Taxes. Pay and discharge promptly when due
all material taxes, assessments and governmental charges imposed upon it or
upon its income or profits or in respect of its property, in each case before
the same shall become delinquent or in default and before penalties accrue
thereon, unless and to the extent that the same are being contested in good
faith by appropriate proceedings and adequate reserves with respect thereto
shall, to the extent required by GAAP, have been set aside.

          SECTION 7.06. Litigation and Other Notices. Give the Administrative Agent
written notice of the following within ten Business Days after any executive
officer of the Company obtains knowledge thereof:

          (a) the filing or commencement of any action, suit or proceeding which the
Company reasonably expects to result in a Material Adverse Effect;

          (b) any Event of Default or Default, specifying the nature and extent
thereof and the action (if any) which is proposed to be taken with respect
thereto; and

          (c) any change in any of the Ratings.

provided, that in each case the Company shall not be required to provide
separate notice of any event disclosed in any report promptly filed with the
SEC if the Company has provided notice to the Administrative Agent in
accordance with Section 7.03 as long as the Company has provided notice
reasonably identifying where the applicable disclosure may be obtained to the
Administrative Agent that such information has been posted.

          SECTION 7.07. Books and Records.
(a) Keep proper books of record and
account in which full, true and correct entries are made of all material
dealings and transactions in relation to its business and activities and (b)
permit any representatives designated by the Administrative Agent or any
Lender, upon reasonable prior notice, to visit and inspect its properties, to
examine and make extracts from its books and records, and to discuss its
affairs,

43

 

finances and condition with its officers and (in the presence of officers of a
Credit Party, whether by phone or in person) its independent accountants (in
each case subject to the
Company’s obligations under applicable confidentiality provisions), all at such
reasonable times and as often as reasonably requested, all at the expense of
the applicable Lenders; provided that during the continuation of any Default
(x) any expense of the Lenders in connection with the foregoing shall be for
the account of the Company and (y) Lenders shall be permitted to discuss the
affairs, finances and condition of the Company and its Subsidiaries without
officers of the Credit Parties being present.

          SECTION 7.08. Subsidiary Guarantor.
Cause each Domestic Wholly Owned
Subsidiary (other than a special purpose subsidiary organized to facilitate a
Permitted Receivables Securitization or an Inactive Subsidiary) to execute and
deliver a counterpart to this Agreement thereby assuming the obligations of a
Subsidiary Guarantor under Section 11.16 on the Effective Date, or, if later,
within 15 Business Days of such Person becoming such a Domestic Wholly Owned
Subsidiary.

          SECTION 7.09. Use of Proceeds. All proceeds of the Loans shall be used for
general corporate purposes, including acquisitions that are not prohibited by
the terms of this Agreement.

ARTICLE VIII

Negative Covenants

          The Company covenants and agrees with each Lender and the Administrative
Agent that so long as this Agreement shall remain in effect or the principal of
or interest on any Loan or any fees or any other amounts payable hereunder
shall be unpaid, unless the Required Lenders shall otherwise consent in
writing, it will not, and will not permit any of the Subsidiaries to, on and
after the Effective Date:

          SECTION 8.01. Consolidations, Mergers, and Sales of Assets. (a)
Consolidate or merge with or into any other Person or liquidate, wind up or
dissolve (or suffer any liquidation or dissolution) or (b) sell, or otherwise
transfer (in one transaction or a series of transactions), or permit any
Subsidiary to sell, or otherwise transfer (in one transaction or a series of
transactions), all or substantially all of the assets of the Company and the
Subsidiaries, taken as a whole, to any other Person; provided that (i) the
Company may merge or consolidate with another Person if the Company is the
corporation surviving such merger or consolidation, (ii) a Subsidiary may merge
or consolidate with another Person if (A) the Company is the surviving
corporation if the Company is a party to such merger or consolidation or (B)
the survivor of such merger or consolidation (in the event that it is not the
Subsidiary) shall assume all of the payment and performance obligations of such
Subsidiary on terms reasonably satisfactory to the Administrative Agent and
(iii) immediately after giving effect to any such merger or consolidation, no
Default or Event of Default shall have occurred and be continuing; provided,
however, that the foregoing restrictions of this Section 8.01 shall not apply
to transactions permitted under Section 8.06 or 8.08.

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          SECTION 8.02. Liens. Create, assume or suffer to exist any Lien upon any
property, except that the foregoing shall not prevent the Company or any
Subsidiary from creating, assuming or suffering to exist any of the following
Liens:

          (a) Liens existing on the Effective Date and set forth on Schedule 8.02 hereof;

          (b) any Lien existing on property owned or leased by any Person at the time it
becomes a Subsidiary, provided that such Lien was not created in anticipation
of such person becoming a Subsidiary;

          (c) any Lien existing on property at the time of the acquisition thereof
by the Company or any Subsidiary provided that such Lien was not created in
anticipation of such acquisition;

          (d) Liens on property acquired, constructed or improved by the Company or
any Subsidiary; provided that the Debt secured thereby does not exceed 80% of
the cost of acquiring, constructing or improving such property and such Liens
do not apply to any other property of the Company or any Subsidiary;

          (e) Liens on receivables and the proceeds thereof securing any Permitted
Receivables Securitization;

          (f) any Liens securing Debt of the Company owing to a Subsidiary or a
Subsidiary owing to the Company or to another Subsidiary;

          (g) Liens for taxes, assessments or governmental charges or levies not yet
due or that are being contested in good faith by appropriate proceedings;
provided that adequate reserves with respect thereto are maintained on the
books of the Company or its Subsidiaries, as the case may be, in conformity
with GAAP;

          (h) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or
other like Liens arising in the ordinary course of business that are not more
than 60 days delinquent in accordance with their terms or that are being
contested in good faith by appropriate proceedings;

          (i) pledges or deposits in connection with workers’ compensation,
unemployment insurance and other social security legislation and deposits
securing liability to insurance carriers under insurance or self-insurance
arrangements;

          (j) deposits to secure the performance of bids, trade contracts (other
than for borrowed money), leases, statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature incurred in the
ordinary course of business;

          (k) easements, rights-of-way, restrictions, licenses, reservations,
utility easements and other similar encumbrances imposed by law or incurred in
the ordinary course of business that, do not materially detract from the value
of the property subject thereto or materially interfere with the ordinary
conduct of the business of the Company and its Subsidiaries, considered as a
whole;

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          (l) any interest or title of a lessor under any lease entered into by the
Company or any Subsidiary in the ordinary course of its business and covering
only the assets so leased;

          (m) attachment or judgment Liens in respect of judgments or decrees that
have been vacated, discharged or stayed within 30 days from the entry thereof;
and attachment or judgment Liens in respect of judgments or decrees that have
been bonded pending appeal within 30 days from the entry thereof and which do
not exceed $75,000,000 in the aggregate;

          (n) Liens arising from precautionary U.C.C. financing statement filings
with respect to operating leases or consignment arrangements entered into by
the Company or any Subsidiary in the ordinary course of business;

          (o) customary Liens in favor of a banking institution arising by operation
of law encumbering deposits (including the right of set-off) held by such
banking institutions incurred in the ordinary course of business and that are
within the general parameters customary in the banking industry;

          (p) any extension, renewal or replacement (or successive extensions,
renewals or replacements) in whole or in part of any Lien referred to in
clauses (a) through (o) above, so long as the principal amount of the Debt or
other obligations secured thereby does not exceed the principal amount of Debt
or obligations so secured at the time of such extension, renewal or replacement
(except that, where an additional principal amount of Debt is incurred to
provide funds for the completion of a specific project, the additional
principal amount, and any related financing costs, may be secured by the Lien
as well) and such Lien is limited to the same property subject to the Lien so
extended, renewed or replaced (and improvements on such property); and

          (q) any Lien not permitted by clauses (a) through (p) above securing Debt
which, together with the aggregate outstanding principal amount of all other
Debt of the Company and its Subsidiaries which would otherwise be subject to
the foregoing restrictions and the aggregate Value of their existing Sale and
Leaseback Transactions which would be subject to the restrictions of Section
8.02 but for this clause (q), does not at any time exceed 5% of Consolidated
Net Tangible Assets.

          SECTION 8.03. Limitation on Sale and Leaseback Transactions. Enter into
any Sale and Leaseback Transaction, or permit any Subsidiary to do so, unless
the Company or such Subsidiary would be entitled to incur Debt, in a principal
amount equal to the Value of such Sale and Leaseback Transaction, which is
secured by Liens on the property to be leased without violating Section 8.02.

          SECTION 8.04. Financial Condition Covenants.
(a) Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio as at the last day of any period
of four consecutive fiscal quarters of the Company to exceed 3.0 to 1.0.

          (b) Consolidated Interest Coverage Ratio. Permit the Consolidated
Interest Coverage Ratio as at the last day of any period of four consecutive
fiscal quarters of the Company to be less than 3.5 to 1.0.

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          SECTION 8.05. Indebtedness. Permit Subsidiaries of the Company to create,
issue, incur, assume, become liable in respect of or suffer to exist any Debt
(other than Permitted Debt) in an aggregate principal amount exceeding
$125,000,000 outstanding at any time.

          SECTION 8.06. Transactions
with Affiliates.
Enter into
any material
transaction, including any purchase, sale, lease or exchange of property, the
rendering of any service or the payment of any management, advisory or similar
fees, with any Affiliate, except any such transaction which is (a) otherwise
permitted under this Agreement, in the ordinary course of business of the
relevant Affiliate and upon fair and reasonable terms no less favorable to the
relevant Affiliate than it would obtain in a comparable arm’s length
transaction with a Person that is not an Affiliate, (b) entered into prior to
the Effective Date or contemplated by any agreement identified on Schedule 8.06
hereof, (c) between or among the Company or any Subsidiary exclusively, (d) any
Restricted Payment permitted under Section 8.07, (e) any transactions in
connection with any Permitted Receivables Securitization or (f) any
arrangements with officers, directors, representatives or other employees of
the Company or any Subsidiary relating specifically to employment as such.

          SECTION 8.07. Restricted Payments. At any time that the Company does not
have an Investment Grade Standing, declare or pay any dividend (other than (i)
dividends payable solely in common stock of the Person making such dividend or
options, warrants or rights to purchase shares of such common stock or (ii)
dividends or other distributions made pursuant to the Rights Agreement) 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 capital stock of any Subsidiary, whether now or hereafter outstanding,
or make any other distribution in respect thereof, either directly or
indirectly, whether in cash or property or in obligations of any Subsidiary
(collectively, “Restricted Payments”), except that any Subsidiary may make
Restricted Payments to the Company and its other equity holders, pro rata in
accordance with their respective equity interests in such Subsidiary.

          SECTION 8.08. Investments. At any time that the Company does not have an
Investment Grade Standing, make any advance, loan, extension of credit (by way
of guaranty or otherwise) or capital contribution to, or purchase any capital
stock, bonds, notes, debentures or other debt securities of, or any assets
constituting a business unit of, or make any other investment in, any Person
(all of the foregoing, “Investments”), except:

          (a) investments in Cash Equivalents;

          (b) extensions of trade credit in the ordinary course of business;

          (c) Loans and advances to employees of the Company or any Subsidiary in
the ordinary course of business (including for travel, entertainment and
relocation expenses) in an aggregate amount for such employees not to exceed
$10,000,000 at any one time outstanding;

          (d) Loans to employees of the Company or any Subsidiary solely for the
purpose of exercising options to purchase the common stock of the Company or
any Subsidiary;

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          (e) intercompany Investments by the Company or any Subsidiary in the
Company or any Person that, prior to such investment, is a Guarantor, including
Guarantees by the Company of any Debt of any Subsidiary;

          (f) in addition to Investments otherwise expressly permitted by this
Section 8.08, Investments by the Company or any of its Subsidiaries in an
aggregate amount (valued at cost) at any time invested not to exceed the sum of
$250,000,000 plus any amount thereof financed with Company Stock or the
proceeds of the issuance of Company Stock;

          (g) Investments made or committed to be made when the Company has
Investment Grade Standing, together with any extensions, renewals or
replacements thereof (provided the aggregate amount of the Investment is not
increased), and

          (h) Loans and advances to vendors, distributors or agents in the ordinary
course of business in an aggregate amount not to exceed $20,000,000 at any time
outstanding.

ARTICLE IX

Events of Default

          In case of the happening of any of the following events (each an
“Event of Default”):

          (a) any representation or warranty made or deemed made in or in connection
with the execution and delivery of this Agreement or the Borrowings hereunder
or under any Borrowing Subsidiary Agreement shall prove to have been false or
misleading in any material respect when so made, deemed made or furnished;

          (b) default shall be made in the payment of any principal of any Loan when
and as the same shall become due and payable, whether at the due date thereof
or at a date fixed for prepayment thereof or by acceleration thereof or
otherwise;

          (c) default shall be made in the payment of any interest on any Loan or
any fee or any other amount (other than an amount referred to in paragraph (b)
above) due hereunder, when and as the same shall become due and payable, and
such default shall continue unremedied for a period of five Business Days;

          (d) default shall be made in the due observance or performance of any
covenant, condition or agreement contained in Section 7.06 or Article VIII;

          (e) default shall be made in the due observance or performance of any
covenant, condition or agreement contained herein (other than those specified
in (b), (c) or (d) above) or in any other Loan Document and such default shall
continue unremedied for a period of 30 days after notice thereof from the
Administrative Agent or any Lender to the Company;

          (f) the Company or any Subsidiary shall (i) fail to pay any principal or
interest, regardless of amount, due in respect of one or more items of Debt in
an aggregate

48

 

principal amount greater than or equal to $75,000,000, when and as the same
shall become due and payable (giving effect to any applicable grace period) or
(ii) fail to observe or perform any other term, covenant, condition or
agreement contained in any agreement or instrument evidencing or governing any
such Debt if the effect of any failure referred to in this clause (ii) is to
cause such Debt to become due prior to its stated maturity;

          (g) an involuntary proceeding shall be commenced or an involuntary
petition shall be filed in a court of competent jurisdiction seeking (i) relief
in respect of the Company or any Subsidiary, or of a substantial part of the
property or assets of the Company or any Subsidiary, under Title 11 of the
United States Code, as now constituted or hereafter amended, or any other
Federal, state or foreign bankruptcy, insolvency, receivership or similar law,
(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 the property or assets of the Company or any Subsidiary or
(iii) the winding up or liquidation of the Company or any Subsidiary; and 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;

          (h) the Company or any Subsidiary shall (i) voluntarily commence any
proceeding or file any petition seeking relief under Title 11 of the United
States Code, as now constituted or hereafter amended, or any other Federal,
state or foreign bankruptcy, insolvency, receivership or similar law, (ii)
consent to the institution of, or fail to contest in a timely and appropriate
manner, any proceeding or the filing of any petition described in (g) above,
(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 the property or assets of the Company
or any Subsidiary, (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, (vi) become unable, admit in writing its
inability or fail generally to pay its debts as they become due or (vii) take
any action for the purpose of effecting any of the foregoing;

          (i) one or more judgments for the payment of money in an aggregate amount
equal to or greater than $75,000,000 (exclusive of any amount thereof
reasonably expected to be covered by insurance) shall be rendered against the
Company, any Subsidiary or any combination thereof and the same shall remain
undischarged for a period of 30 consecutive days during which execution shall
not be effectively stayed, or any action shall be legally taken by a judgment
creditor (whose liquidated judgment, along with those of any other judgment
creditors, exceeds $75,000,000) to levy upon assets or properties of the
Company or any Subsidiary to enforce any such judgment;

          (j) (i) a Plan of any Borrower shall fail to maintain the minimum funding
standard required by Section 412 of the Code for any plan year or a waiver of
such standard is sought or granted under Section 412(d) or (ii) an ERISA
Termination Event shall have occurred with respect to any Borrower or an ERISA
Affiliate has incurred, or in the reasonable opinion of the Required Lenders is
reasonably likely to incur, a liability to or on account of a Plan under
Section 4062, 4063, 4064, 4201 or 4204 of ERISA or (iii) any Person shall
engage in any prohibited transaction described in Sections 406 of ERISA or 4975
of the Code for which a statutory or class exemption is not available or a
private exemption has not been previously

49

 

obtained from the United States Department of Labor or (iv) any Borrower or any
ERISA Affiliate shall fail to pay any required installment or any other payment
required to be paid by such entity under Section 412 of the Code on or before
the due date for such installment or other payment (taking into account any
extensions granted) or (v) any Borrower or any ERISA Affiliate shall fail to
make any contribution or payment to any Multiemployer Plan (as defined in
Section 4001(a)(3) of ERISA) which any Borrower or any ERISA Affiliate is
required to make under any agreement relating to such Multiemployer Plan or any
law pertaining thereto (taking into account any extensions granted), and, in
the event of the occurrence of any of the events described in clauses (i)
through (v) above, there shall result from any such event or events either a
liability or a material risk of incurring a liability which is reasonably
expected to have a Material Adverse Effect;

          (k) a Change in Control shall occur; or

          (l) the guarantee in Section 11.16 shall cease to be, or shall be asserted by
any Credit Party not to be, a valid and binding obligation on the part of any
Guarantor;

then, and in every such event (other than an event with respect to any Borrower
described in paragraph (g) or (h) above), and at any time thereafter during the
continuance of such event, the Administrative Agent, at the request of the
Required Lenders, shall, by notice to the Company or any other Borrower (which
notice to any other Borrower may be given to the Company), take either or both
of the following actions, at the same or different times: (i) terminate
forthwith the Commitments and (ii) declare the Loans then outstanding to be
forthwith due and payable in whole or in part, whereupon the principal of the
Loans so declared to be due and payable, together with accrued interest thereon
and any unpaid accrued fees and all other liabilities of the Borrowers accrued
hereunder, shall become forthwith due and payable, without presentment, demand,
protest or any other notice of any kind, all of which are hereby expressly
waived anything contained herein to the contrary notwithstanding; and, in any
event with respect to any Borrower described in paragraph (g) or (h) above, the
Commitments shall automatically terminate and the principal of the Loans then
outstanding, together with accrued interest thereon and any unpaid accrued fees
and all other liabilities of the Borrowers accrued hereunder shall
automatically become due and payable, without presentment, demand, protest or
any other notice of any kind, all of which are hereby expressly waived anything
contained herein to the contrary notwithstanding.

ARTICLE X

The Administrative Agent

          In order to expedite the transactions contemplated by this Agreement,
JPMCB is hereby appointed to act as the Administrative Agent and Advance Agent
on behalf of the Lenders. Each of the Lenders hereby irrevocably authorizes the
Administrative Agent (which term, for purposes of this Article X shall be
deemed to include the Advance Agent) to take such actions on behalf of such Lender
or holder and to exercise such powers as are specifically delegated to the
Administrative Agent by the terms and provisions hereof, together with such
actions and powers as are reasonably incidental thereto. The Administrative
Agent is hereby

50

 

expressly authorized by the Lenders, without hereby limiting any implied
authority, (a) to receive on behalf of the Lenders all payments of principal of
and interest on the Loans and all other amounts due to the Lenders hereunder,
and promptly to distribute to each Lender its proper share of each payment so
received; (b) to give notice on behalf of each of the Lenders to the Credit
Parties of any Event of Default of which the Administrative Agent has actual
knowledge acquired in connection with its agency hereunder; and (c) to
distribute to each Lender copies of all notices, financial statements and other
materials delivered by any Credit Party pursuant to this Agreement as received
by the Administrative Agent.

          Neither the Administrative Agent nor any of its respective directors,
officers, employees or agents shall be liable as such for any action taken or
omitted by any of them except for its or his or her own gross negligence or
wilful misconduct, or be responsible for any statement, warranty or
representation herein or the contents of any document delivered in connection
herewith, or be required to ascertain or to make any inquiry concerning the
performance or observance by any Borrower of any of the terms, conditions,
covenants or agreements contained in this Agreement. The Administrative Agent
shall not be responsible to the Lenders for the due execution, genuineness,
validity, enforceability or effectiveness of this Agreement or other
instruments or agreements. The Administrative Agent may deem and treat the
Lender which makes any Loan as the holder of the indebtedness resulting
therefrom for all purposes hereof until it shall have received notice from such
Lender, given as provided herein, of the transfer thereof. The Administrative
Agent shall in all cases be fully protected in acting, or refraining from
acting, in accordance with written instructions signed by the Required Lenders
and, except as otherwise specifically provided herein, such instructions and
any action or inaction pursuant thereto shall be binding on all the Lenders.
The Administrative Agent shall, in the absence of knowledge to the contrary, be
entitled to rely on any instrument or document believed by it in good faith to
be genuine and correct and to have been signed or sent by the proper Person or
Persons. Neither the Administrative Agent nor any of its directors, officers,
employees or agents shall have any responsibility to any Borrower on account of
the failure of or delay in performance or breach by any Lender of any of its
obligations hereunder or to any Lender on account of the failure of or delay in
performance or breach by any other Lender or any Borrower of any of their
respective obligations hereunder or in connection herewith. The Administrative
Agent may execute any and all duties hereunder by or through its Affiliates,
agents or employees and shall be entitled to rely upon the advice of legal
counsel selected by them with due care with respect to all matters arising
hereunder and shall not be liable for any action taken or suffered in good
faith by them in accordance with the advice of such counsel.

          The Lenders hereby acknowledge that the Administrative Agent shall be
under no duty to take any discretionary action permitted to be taken by it
pursuant to the provisions of this Agreement unless it shall be requested in
writing to do so by the Required Lenders.

          Subject to the appointment and acceptance of a successor Administrative
Agent as provided below, the Administrative Agent may resign at any time by
notifying the Lenders and the Company. Upon any such resignation of the
Administrative Agent, the Required Lenders shall have the right to appoint a
successor Administrative Agent acceptable to the Company. If no successor shall
have been so appointed by the Required Lenders and shall have accepted such
appointment within 30 days after the retiring Administrative Agent gives notice
of its resignation, then the retiring Administrative Agent may, on behalf of
the Lenders, appoint a

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successor Administrative Agent which shall be a bank having a combined capital
and surplus of at least $500,000,000 (or any Affiliate of such bank) with an
office in New York, New York. Upon the acceptance of any appointment as
Administrative Agent hereunder by a successor bank, such successor shall
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Administrative Agent and the retiring Administrative Agent
shall be discharged from its duties and obligations hereunder. After the
Administrative Agent’s resignation hereunder, the provisions of this Article X
and Section 11.05 shall continue in effect for its benefit in respect of any
actions taken or omitted to be taken by it while it was acting as
Administrative Agent.

          With respect to the Loans made by it hereunder, the Administrative Agent
in its individual capacity and not as Administrative Agent shall have the same
rights and powers as any other Lender and may exercise the same as though it
were not the Administrative Agent, and the Administrative Agent 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 the Administrative Agent.

          Each Lender agrees (i) to reimburse the Administrative Agent, on demand,
in the amount of its pro rata share of any expenses incurred for the benefit of
the Lenders by the Administrative Agent, including counsel fees and
compensation of agents and employees paid for services rendered on behalf of
the Lenders, which shall not have been reimbursed by the Borrowers and (ii) to
indemnify and hold harmless the Administrative Agent and any of its respective
directors, officers, employees or agents, on demand, in the amount of such pro
rata share, from and against any and all liabilities, taxes, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever which may be imposed on,
incurred by or asserted against it in its capacity as the Administrative Agent
in any way relating to or arising out of this Agreement or any action taken or
omitted by it under this Agreement to the extent the same shall not have been
reimbursed by the Borrowers; provided that no Lender shall be liable to the Administrative Agent for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from the gross negligence or
wilful misconduct of the Administrative Agent or any of its directors,
officers, employees or agents. For purposes hereof, a Lender’s “pro rata share”
shall be determined based upon its share of the sum of the aggregate Revolving
Credit Exposure and unused Commitments at the time.

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

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ARTICLE XI

Miscellaneous

                SECTION 11.01. Notices. Notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed or sent by telecopy, as follows:

          (i) if to the Company, to Zimmer Holdings, Inc., 345 Main Street,
Warsaw, IN 46581, Attention of Sam R. Leno, Executive Vice President,
Corporate Finance and Operations and Chief Financial Officer (Telecopy
No.: 574-372-4988);

          (ii) if to Zimmer, to Zimmer, Inc., 345 Main Street, Warsaw, IN
46581, Attention of Sam R. Leno, Executive Vice President, Corporate
Finance and Operations and Chief Financial Officer (Telecopy No.:
574-372-4988);

          (iii) if to the Administrative Agent, to JPMorgan Chase Bank, 1111
Fannin Street, Houston, Texas 77002, Attention: Jennifer Anyigbo, Account
Manager (Telecopy No.: 713-750-2782 (email:jennifer.anyigbo@jpmorgan.com
); with a copy of all documents to be delivered pursuant to Section 7.03
to JPMorgan Chase Bank, 270 Park Avenue, 15th Floor, New York, New York
10017, Attention of Lyette Proctor, (Telecopy No.: 212-270-5135) and to
JPMorgan Chase Bank, 270 Park Avenue, 4th Floor, New York, New York,
10017, Attention of Dawn Lee Lum (Telecopy No.: 212-270-5100);

          (iv) if to a Lender, to it at its address (or telecopy number) set
forth in Schedule 2.01 or in the Assignment and Acceptance pursuant to
which such Lender became a party hereto; and

          (v) if to any other Borrowing Subsidiary, to it at the address (or
telecopy number) set forth above for the Company. Each Borrower (other
than the Company) hereby irrevocably appoints the Company as its agent
for the purpose of giving on its behalf any notice and taking any other
action provided for in this Agreement (whether or not this Agreement
expressly authorizes the Company to take any such action on behalf of
such Borrower) and hereby agrees that it shall be bound by any such
notice or action given or taken by the Company hereunder irrespective of
whether or not any such notice shall have in fact been authorized by such
Borrower and irrespective of whether or not the agency provided for
herein shall have theretofore been terminated.

                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 if delivered by hand or overnight courier service
or sent by telecopy to such party as provided in this Section or in accordance
with the latest unrevoked direction from such party given in accordance with
this Section.

                SECTION 11.02. Survival of Agreement. All covenants, agreements, representations and warranties made by any Credit Party herein and in the
certificates or other instruments prepared or delivered in connection with or
pursuant to this Agreement shall be considered to have been relied upon by the
Lenders and shall survive the making by the Lenders

53

 

of the Loans regardless of any investigation made by the Lenders or on their
behalf, 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 the Commitments have not been
terminated.

          SECTION 11.03. Binding Effect. This Agreement shall become effective when
it shall have been executed by the Company, Zimmer and the Administrative Agent
and when the Administrative Agent shall have received copies hereof (telecopied
or otherwise) which, when taken together, bear the signature of each Lender,
and thereafter shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns, except that no Borrower
shall have the right to assign any rights hereunder or any interest herein,
except in accordance with Section 11.04, without the prior consent of all the
Lenders.

          SECTION 11.04. Successors and Assigns. (a) Whenever in this Agreement any
of the parties is referred to, such reference shall be deemed to include the
successors and assigns of such party; and all covenants, promises and
agreements by or on behalf of any party that are contained in this Agreement
shall bind and inure to the benefit of its successors and assigns.

          (b) Each Lender other than any Conduit Lender may assign to one or more
assignees all or a portion of its interests, rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans at the
time owing to it); provided, however, that, except in the case of an assignment
to another Lender, an Affiliate of a Lender or an Approved Fund, (i) each of
the Company (so long as no Event of Default shall have occurred and be
continuing) and the Administrative Agent must give its prior written consent to
such assignment (which consent in each case shall not be unreasonably withheld)
and (ii) the amount of the Commitments of the assigning Lender subject to each
such assignment (determined as of the date the Assignment and Acceptance with
respect to such assignment is delivered to the Administrative Agent) shall not
be less than $5,000,000 unless it shall be the entire amount of such Lender’s
Commitments or Loans, as applicable. The parties to each assignment shall
execute and deliver to the Administrative Agent an Assignment and Acceptance,
and a processing and recordation fee of $3,500; provided, however, that such
processing and recordation fee shall not be payable in the case of assignments
made by or to Arrangers or their Affiliates. Upon acceptance and recording
pursuant to paragraph (e) of this Section 11.04, from and after the effective
date specified in each Assignment and Acceptance, which effective date shall be
at least five Business Days after the execution thereof, (x) the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned
by such Assignment and Acceptance, have the rights and obligations of a Lender
under this Agreement and (y) the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Acceptance, be released
from its obligations under this Agreement (and, in the case of an Assignment
and Acceptance covering all or the remaining portion of an assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto (but shall (i) continue to be entitled to the benefits of Sections
4.09, 4.10, 4.11 and 11.05, as well as to any fees accrued for its account
hereunder and not yet paid and (ii) continue to be subject to the
confidentiality provisions hereof). Notwithstanding the foregoing, any Lender
assigning its rights and obligations under this Agreement may retain any
Competitive Loans made by it outstanding at such time, and in such case shall
retain its rights hereunder in respect of any Loans so retained until such
Loans have been repaid in full in accordance with this Agreement.
Notwithstanding

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the foregoing, any Conduit Lender may assign at any time to its designating
Lender hereunder without the consent of the Company or the Administrative Agent
any or all of the Loans it may have funded hereunder and pursuant to its
designation agreement and without regard to the limitations set forth in the
first sentence of this Section 11.04(b).

          For the purpose of this Section 11.04(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 (i) a Lender, (ii) an Affiliate of a Lender or (iii)
an entity or an Affiliate of an entity that administers or manages a Lender.

          (c) By executing and delivering an Assignment and Acceptance, the
assigning Lender thereunder and the assignee thereunder shall be deemed to
confirm to and agree with each other and the other parties hereto as follows:
(i) such assigning Lender warrants that it is the legal and beneficial owner of
the interest being assigned thereby free and clear of any adverse claim; (ii)
except as set forth in (i) above, such assigning Lender makes no representation
or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of this Agreement or any other instrument or document furnished pursuant
hereto or the financial condition of the Borrowers or the performance or
observance by the Borrowers of any obligations under this Agreement or any
other instrument or document furnished pursuant hereto; (iii) such assignee
represents and warrants that it is legally authorized to enter into such
Assignment and Acceptance; (iv) such assignee confirms that it has received a
copy of this Agreement, together with copies of the most recent financial
statements delivered pursuant to Section 7.03 and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into such Assignment and Acceptance; (v) such assignee will
independently and without reliance upon the Administrative Agent, such
assigning Lender 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 this Agreement; (vi) such
assignee appoints and authorizes the Administrative Agent to take such action
as agent on its behalf and to exercise such powers under this Agreement as are
delegated to the Administrative Agent by the terms hereof, together with such
powers as are reasonably incidental thereto; and (vii) such assignee agrees
that it will perform in accordance with their terms all the obligations which
by the terms of this Agreement are required to be performed by it as a Lender.

          (d) The Administrative Agent shall maintain at its office referred to in
Section 11.01 a copy of each Assignment and Acceptance delivered to it and a
register for the recordation of the names and addresses of the Lenders, and the
Commitments of, and the principal amount of the Loans owing to, each Lender
pursuant to the terms hereof from time to time and any promissory notes
evidencing such Loans (the “Register”). The entries in the Register shall be
conclusive in the absence of manifest error and the Company, the other
Borrowers, the Administrative Agent 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

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this Agreement. No assignment or transfer of any Loan (or portion thereof) or any Note evidencing such Loan shall be effected unless and until it has been recorded in the Register as provided in this subsection 11.04(d). Notwithstanding any other provision of this Agreement, any assignment or transfer of all or part of a promissory note shall be registered on the Register only upon surrender for registration of assignment or transfer of the promissory note (and each promissory note shall expressly so provide), accompanied by a duly executed Assignment and Acceptance, and thereupon one or more new promissory notes in the same aggregate principal amount shall be issued to the designated Assignee and the old promissory notes shall be returned by the Administrative Agent to the Company marked “cancelled”. The Register shall be available for inspection by each party hereto, at any reasonable time and from time to time upon reasonable prior notice.

           (e) Upon its receipt of a duly completed Assignment and Acceptance executed by an assigning Lender and an
assignee together with an Administrative Questionnaire completed in respect of the assignee (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (b) above, if applicable, and, if required, the written consent of the Company to such assignment, the Administrative Agent shall (i) accept such Assignment and Acceptance and (ii) record the information contained therein in the Register.

           (f) Each Lender other than any Conduit Lender may sell participations to
one or more banks or other entities in all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitments
and the Loans owing to it); provided, however, that (i) such Lender’s
obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto or thereto for the
performance of such obligations, (iii) each participating bank or other entity
shall be entitled to the benefit of the cost protection provisions contained in
Sections 4.09, 4.10 and 4.11 to the same extent as if it was the selling Lender
(and limited to the amount that could have been claimed by the selling Lender
had it continued to hold the interest of such participating bank or other
entity, it being further agreed that the selling Lender will not be permitted
to make claims against the Borrowers under Section 4.09(b) for costs or
reductions resulting from the sale of a participation), except that all claims
made pursuant to such Sections shall be made through such selling Lender and
(iv) the Borrowers, the Administrative Agent and the other Lenders shall
continue to deal solely and directly with such selling Lender in connection
with such Lender’s rights and obligations under this Agreement, and such Lender
shall retain the sole right to enforce the obligations of the Borrowers
relating to the Loans and to approve any amendment, modification or waiver of
any provision of this Agreement (other than amendments, modifications or
waivers decreasing any fees payable hereunder or thereunder or the amount of
principal of or the rate at which interest is payable on the Loans, extending
the final scheduled maturity of the Loans or any date scheduled for the payment
of interest on the Loans, extending the Commitments or releasing any Guarantor
from its obligations hereunder).

           (g) Any Lender or participant may, in connection with any assignment or
participation or proposed assignment or participation pursuant to this Section
11.04, disclose to the assignee or participant or proposed assignee or
participant any information relating to the Company or the other Borrowers
furnished to such Lender; provided that, prior to any such

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disclosure, each such assignee or participant or proposed assignee or
participant shall be subject to the confidentiality provisions contained
herein.

     (h) The Borrowers shall not assign or delegate any rights and duties
hereunder, except in accordance with Section 8.01, without the prior written
consent of all Lenders.

     (i) Any Lender may at any time pledge or otherwise assign all or any
portion of its rights under this Agreement to a Federal Reserve Bank; provided
that no such pledge shall release any Lender from its obligations hereunder.
In order to facilitate such an assignment to a Federal Reserve Bank, the
relevant Borrower shall, at the request of the assigning Lender, duly execute
and deliver to the assigning Lender a promissory note or notes evidencing the
Loans made by the assigning Lender hereunder.

     (j) Each party hereto hereby confirms that it will not institute against a
Conduit Lender or join any other Person in instituting against a Conduit Lender
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceeding under any state bankruptcy or similar law, for one year and one day
after the payment in full of the latest maturing commercial paper note issued
by such Conduit Lender; provided, however, that each Lender designating any
Conduit Lender hereby agrees to indemnify, save and hold harmless each other
party hereto for any loss, cost, damage or expense arising out of its inability
to institute such a proceeding against such Conduit Lender during such period
of forbearance.

     SECTION 11.05. Expenses, Indemnity. (a) The Company agrees to pay all
reasonable out-of-pocket expenses incurred by the Administrative Agent and the
Arrangers in connection with entering into this Agreement or in connection with
any amendments, modifications or waivers of the provisions hereof or thereof
(including the reasonable fees, disbursements and other charges of a single
counsel), or incurred by the Administrative Agent, the Arrangers or any Lender
in connection with the enforcement of their rights in connection with this
Agreement or in connection with the Loans made hereunder or thereunder,
including the fees and disbursements of counsel for the Administrative Agent
and the Arrangers and, in the case of enforcement, each Lender.

     (b) The Company agrees to indemnify the Administrative Agent, the
Arrangers, each Lender, each of their Affiliates and the directors, officers,
employees and agents of the foregoing (each such Person being called an
“Indemnitee”) against, and to hold each Indemnitee harmless from, any and all
losses, claims, damages, liabilities and related expenses, including reasonable
counsel fees, incurred by or asserted against any Indemnitee arising out of (i)
the consummation of the transactions contemplated by this Agreement, (ii) the
use of the proceeds of the Loans or (iii) any claim, litigation, investigation
or proceeding relating to any of the foregoing, whether or not any Indemnitee
is a party thereto; provided that (x) such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses result from the gross negligence or wilful
misconduct of such Indemnitee and (y) such indemnity shall not apply to losses,
claims, damages, liabilities or relate expenses that result from disputes
solely between Lenders.

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     (c) The provisions of this Section 11.05 shall remain operative and in
full force and effect regardless of the expiration of the term of this
Agreement, the consummation of the transactions contemplated hereby, the
repayment of any of the Loans, the invalidity or unenforceability of any term
or provision of this Agreement or any investigation made by or on behalf of the
Administrative Agent or any Lender. All amounts due under this Section 11.05
shall be payable on written demand therefor.

     SECTION 11.06. Applicable Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

     SECTION 11.07. Waivers, Amendment. (a) No failure or delay of the
Administrative Agent or any Lender in exercising any power or right hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right or power, or any abandonment or discontinuance of steps to
enforce such a right or power, preclude any other or further exercise thereof
or the exercise of any other right or power. The rights and remedies of the
Administrative Agent and the Lenders hereunder are cumulative and are not
exclusive of any rights or remedies which they would otherwise have. No waiver
of any provision of this Agreement or consent to any departure therefrom shall
in any event be effective unless the same shall be permitted by paragraph (b)
below, and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. No notice or demand on the
Company or any other Borrower in any case shall entitle such party to any other
or further notice or demand in similar or other circumstances.

     (b) Neither this Agreement nor any provision hereof may be waived, amended
or modified except pursuant to an agreement or agreements in writing entered
into by the Borrowers and the Required Lenders; provided, however, that no such
agreement shall (i) decrease the principal amount of, or extend the maturity of
or any scheduled principal payment date or date for the payment of any interest
on any Loan, or waive or excuse any such payment or any part thereof, or
decrease the rate of interest on any Loan, or amend or modify Section 11.16,
without the prior written consent of each Lender directly affected thereby,
(ii) increase the Commitments or decrease or extend the date for payment of the
facility fees of any Lender without the prior written consent of such Lender,
(iii) amend or modify the provisions of Section 4.12 or Section 11.04(h), the
provisions of this Section 11.07 or the definition of the “Required Lenders”,
or release any Guarantor from its obligations under Section 11.16 hereof except
for the release of a Subsidiary Guarantor in connection with the consummation
of a transaction permitted under Section 8.01, without the prior written
consent of each Lender, (iv) change the provisions of any Loan Document in a
manner that by its terms adversely affects the rights in respect of payments
due to Lenders holding Loans of one Class differently from the rights of
Lenders holding Loans of any other class without the prior written consent of
Lenders holding a majority in interest of the outstanding Loans and unused
Commitments of each adversely affected Class or (v) change the requirement that
disbursements made by any Lender be made ratably with respect to its applicable
Commitment without the prior written consent of each Lender directly affected
thereby; provided further, however, that no such agreement shall amend, modify
or otherwise affect the rights or duties of (x) the Administrative Agent
hereunder without the prior
written consent of the Administrative Agent or (y) an Arranger under
Section 11.04(b) without the prior written consent of such Arranger. Each

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Lender shall be bound by any waiver, amendment or modification authorized by
this Section 11.07 and any consent by any Lender pursuant to this Section 11.07
shall bind any assignee of its rights and interests hereunder.

           SECTION 11.08. Entire Agreement. This Agreement and the Engagement Letter
constitute the entire contract among the parties relative to the subject matter
hereof. Any previous agreement among the parties with respect to the subject
matter hereof is superseded by this Agreement. Nothing in this Agreement,
expressed or implied, is intended to confer upon any party other than the
parties hereto any rights, remedies, obligations or liabilities under or by
reason of this Agreement.

           SECTION 11.09. Severability. In the event any one or more of the
provisions contained in this Agreement should be held invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not in any way be affected or
impaired thereby. The parties shall endeavor in good-faith negotiations to
replace the invalid, illegal or unenforceable provisions with valid provisions
the economic effect of which comes as close as possible to that of the invalid,
illegal or unenforceable provisions.

           SECTION 11.10. Counterparts. This Agreement may be executed in two or
more counterparts, each of which shall constitute an original but all of which
when taken together shall constitute but one contract, and shall become
effective as provided in Section 11.03.

           SECTION 11.11. 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 are not to affect the construction of, or to be taken into
consideration in interpreting, this Agreement.

           SECTION 11.12. Right of Setoff. If an Event of Default shall have
occurred and be continuing, each Lender 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 indebtedness at any time owing by such Lender to or
for the credit or obligations of each Credit Party 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. Each Lender agrees promptly to notify the
Company after such setoff and application made by such Lender, but the failure
to give such notice shall not affect the validity of such setoff and
application. The rights of each Lender under this Section 11.12 are in
addition to other rights and remedies (including, without limitation, other
rights of setoff) which such Lender may have.

           SECTION 11.13. Jurisdiction: Consent to Service of Process. (a) Each
party hereto hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any New York State court or
Federal court of the United States of America sitting in New York City, and any
appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement, 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

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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. Subject to the foregoing and to
paragraph (b) below, nothing in this Agreement shall affect any right that any
party hereto may otherwise have to bring any action or proceeding relating to
this Agreement against any other party hereto in the courts of any
jurisdiction.

           (b) Each of the parties hereto hereby irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection which it may now or thereafter have to the laying of venue of any
suit, action or proceeding arising out of or relating to this Agreement in any
New York State or Federal court. 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.

           (c) Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 11.01. Nothing in this
Agreement will affect the right of any party to this Agreement to serve process
in any other manner permitted by law.

           (d) Each Borrower hereby irrevocably appoints the Company as its agent for
the service of process in any action referred to in Section 11.13(a) and agrees
that service of process in any such proceeding may be made by mailing or
delivering a copy thereof to it care of the Company at its address for notice
set forth in Section 11.01.

           (e) Each Credit Party waives, to the maximum extent not prohibited by law,
any right it may have to claim or recover in any legal action or proceeding
referred to in this Section for any special, exemplary, punitive or
consequential damages.

           SECTION 11.14. 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 respect of any litigation directly or indirectly arising out
of, under or in connection with this Agreement. 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 other parties hereto have been induced to enter into this Agreement
by, among other things, the mutual waivers and certification in this Section
11.14.

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

           (b) The obligations of each Borrower in respect of any sum due to any
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

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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, such Borrower agrees, as a
separate obligation and notwithstanding any such judgment, to indemnify the
Applicable Creditor against such loss. The obligations of the Borrowers
contained in this Section 11.15 shall survive the termination of this Agreement
and the payment of all other amounts owing hereunder.

           SECTION 11.16. Guaranty. In order to induce the Lenders to make Loans to
the Company and the other Borrowers, each Guarantor hereby unconditionally and
irrevocably guarantees as a primary obligor the Borrower Obligations of all the
Borrowers. Each Guarantor further agrees that the Borrower Obligations may be
extended and renewed, in whole or in part, without notice to or further assent
from it, and that it will remain bound upon its agreement hereunder
notwithstanding any extension or renewal of any Borrower Obligation.

           Each Guarantor waives promptness, diligence, presentment to, demand of
payment from and protest to the Borrowers of any Borrower Obligations, and also
waives notice of acceptance of its obligations and notice of protest for
nonpayment. The obligations of each Guarantor hereunder shall be absolute and
unconditional and not be affected by, and each Guarantor waives any defense it
may now or hereafter have arising out of (a) the failure of any Lender or the
Administrative Agent to assert any claim or demand or to enforce any right or
remedy against any Borrower under the provisions of this Agreement or any of
the other Loan Documents or otherwise; (b) any rescission, waiver, amendment or
modification of any of the terms or provisions of this Agreement, any other
Loan Documents or any other agreement; (c) the failure of any Lender to
exercise any right or remedy against any Borrower; (d) the invalidity or
unenforceability of any Loan Document; (e) the validity, legality or
enforceability of this Agreement or any Loan or any document or instrument
relating thereto or given in connection therewith; or (f) any other
circumstance which might otherwise constitute a defense available to or
discharge of a Borrower or a guarantor (other than indefeasible payment).

           Each Guarantor further agrees that its agreements hereunder constitutes a
promise of payment when due and not of collection, and waives any right to
require that any resort be had by any Lender to any balance of any deposit
account or credit on the books of any Lender in favor of any Borrower or any
other Person.

           The obligations of each Guarantor hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason, and shall not
be subject to any defense or setoff, counterclaim, recoupment or termination
whatsoever, by reason of the invalidity, illegality or unenforceability of the
Borrower Obligations or otherwise. Without limiting the generality of the
foregoing, the obligations of the Guarantors hereunder shall not be discharged
or impaired or otherwise affected by the failure of the Administrative Agent or
any Lender to assert any claim or demand or to enforce any remedy under this
Agreement or under any other Loan Document or any other agreement, by any
waiver or modification in respect of any thereof, by any default, failure or
delay,
wilful or otherwise, in the performance of the Borrower Obligations, or by
any other act or omission which may or might in any manner or to any extent

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vary the risk of the Guarantors (or any of them) or otherwise operate as a
discharge of the Guarantors (or any of them) as a matter of law or equity.

           Each Guarantor further agrees that its obligations hereunder shall
continue to be effective or be reinstated, as the case may be, if at any time
payment, or any part thereof, of principal of or interest on any Borrower
Obligation is rescinded or must otherwise be restored by the Administrative
Agent or any Lender upon the bankruptcy or reorganization of any Borrower or
otherwise.

           In furtherance of the foregoing and not in limitation of any other right
which the Administrative Agent or any Lender may have at law or in equity
against the Guarantors (or any of them) by virtue hereof, upon the failure of
any Borrower to pay any Borrower Obligation when and as the same shall become
due, whether at maturity, by acceleration, after notice of prepayment or
otherwise, each Guarantor hereby promises to and will, upon receipt of written
demand by the Administrative Agent, forthwith pay, or cause to be paid, in cash
the amount of such unpaid Borrower Obligation. In the event that, by reason of
the bankruptcy of any Borrower (i) acceleration of Loans made to such Borrower
is prevented and (ii) the Guarantors shall not have prepaid the outstanding
Loans and other amounts due hereunder owed by such Borrower, the Guarantors
will forthwith purchase such Loans and other amounts at a price equal to the
principal amount thereof plus accrued interest thereon and any other amounts
due hereunder with respect thereto. Each Guarantor further agrees that if
payment in respect of any Borrower Obligation shall be due at a place of
payment other than New York and if, by reason of any Change in Law, war or
civil disturbance or similar event, payment of such Borrower Obligations in
such place of payment shall be impossible or, in the judgment of any applicable
Lender, not consistent with the protection of its rights or interests, then, at
the election of any applicable Lender, the Guarantors shall make payment of
such Borrower Obligation in New York, and shall indemnify such Lender against
any losses or expenses that it shall sustain as a result of such alternative
payment.

           Following indefeasible payment in full in cash of all Borrower Obligations
and the termination of the Commitments hereunder, upon payment by any Guarantor
of any Borrower Obligations, each Lender shall, in a reasonable manner, assign
the amount of such Borrower Obligations owed to it and paid by such Guarantor
pursuant to this guarantee to such Guarantor, such assignment to be pro tanto
to the extent to which the Borrower Obligations in question were discharged by
such Guarantor, or make such disposition thereof as such Guarantor shall direct
(all without recourse to any Lender and without any representation or warranty
by any Lender except with respect to the amount of the Borrower Obligations so
assigned).

           Each Subsidiary Guarantor hereby agrees that to the extent that a
Subsidiary Guarantor shall have paid more than its proportionate share of any
payment made hereunder, such Subsidiary Guarantor shall be entitled to seek and
receive contribution from and against any other Subsidiary Guarantor hereunder
which has not paid its proportionate share of such payment. Each Subsidiary
Guarantor’s right of contribution shall be subject to the terms and conditions
of the immediately following paragraph. The provisions of this paragraph shall
in no respect limit the obligations and liabilities of any Subsidiary Guarantor
to the Administrative Agent and the Lenders and
each Subsidiary Guarantor shall remain liable to the Administrative Agent
and the Lenders for the full amount guaranteed by such Subsidiary Guarantor
hereunder.

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           Upon payment by any Guarantor of any sums as provided above, all rights of
the Guarantors against any Borrower arising as a result thereof by way of right
of subrogation or otherwise shall in all respects be subordinated and junior in
right of payment to the prior indefeasible payment in full of all the Borrower
Obligations to the Lenders and termination of the Commitments.

           Anything herein or in any other Loan Document to the contrary
notwithstanding, the maximum liability of each Subsidiary Guarantor in its
capacity as a guarantor under this Section 11.16 shall in no event exceed the
amount which can be guaranteed by such Subsidiary Guarantor under applicable
federal and state laws relating to the insolvency of debtors (after giving
effect to the right of contribution established above).

           Each Guarantor agrees that the Borrower Obligations may at any time and
from time to time exceed the amount of the liability of such Guarantor
hereunder without impairing the guarantee contained in this Section 11.16 or
affecting the rights and remedies of the Administrative Agent or any Lender
hereunder.

           SECTION 11.17. Confidentiality. Each of the Administrative Agent and the
Lenders expressly agrees, for the benefit of the Company and the Subsidiaries,
to maintain the confidentiality of the Confidential Information (as defined
below), except that Confidential 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 Confidential Information and instructed to keep such
Confidential Information confidential), (b) to the extent requested by any
regulatory authority, (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) to any other party
to this Agreement, (e) in connection with the exercise of any remedies
hereunder or any suit, action or proceeding relating to this Agreement or the
enforcement of rights hereunder, (f) subject to an express agreement for the
benefit of the Company and the Subsidiaries containing provisions substantially
the same as those of this Section, to any assignee of or participant in, or any
prospective assignee of or participant in, any of its rights or obligations
under this Agreement or to any direct or indirect counter party to a Hedge
Agreement, (g) with the consent of the Company and the Subsidiaries, (h) to the
National Association of Insurance Commissioners or any similar organization or
any nationally recognized ratings agency, or (i) to the extent such
Confidential Information (i) becomes publicly available other than as a result
of a breach of this Section or (ii) becomes available to any Administrative
Agent or any Lender on a nonconfidential basis from a source other than the
Company and the Subsidiaries. For the purposes of this Section, “Confidential
Information” means all information, including material nonpublic information
within the meaning of Regulation FD promulgated by the SEC (“Regulation FD”),
received from the Company and the Subsidiaries relating to such entities or
their respective businesses, other than any such information that is available
to the Administrative Agent or any Lender on a nonconfidential basis prior to
disclosure by such entities; provided that, such information is clearly
identified at the time of delivery as confidential. Any Person required to
maintain the confidentiality of Confidential 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 customarily accords to its own confidential
information; provided, however, that

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with respect to disclosures pursuant to clauses (b) and (c) of this Section,
unless prohibited by law or applicable court order, each Lender and the
Administrative Agent shall attempt to notify the Company and the Subsidiaries
of any request by any governmental agency or representative thereof or other
Person for disclosure of Confidential Information after receipt of such
request, and if reasonable, practicable and permissible, before disclosure of
such Confidential Information. It is understood and agreed that the Company
and the Subsidiaries and their respective Affiliates may rely upon this Section
11.17 for any purpose, including without limitation to comply with Regulation
FD. Notwithstanding anything herein to the contrary, any Party to this
Agreement (and any employee, representative or other agent of such Party) may
disclose to any and all persons, without limitation of any kind, the tax
treatment and tax structure of the transactions contemplated by this Agreement
and all materials of any kind (including opinions or other tax analyses) that
are provided to it relating to such tax treatment and tax structure. The
preceding sentence is intended to cause the transactions contemplated hereby
not to be treated as having been offered under conditions of confidentiality
for purposes of Section 1.6011-4(b)(3) and 301.6111-2(a)(2)(ii) (or any
successor provisions) of the Treasury Regulations promulgated under the Code,
and shall be construed in a manner consistent with such purpose.

           SECTION 11.18. U.S.A. Patriot Act Notice. Each Lender and the
Administrative Agent (for itself and not on behalf of any Lender) hereby
notifies the Borrowers that pursuant to the requirements of the U.S.A. Patriot
Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the
“Act”), it is required to obtain, verify and record information that identifies
each of the Borrowers, which information includes the names and addresses of
each of the Borrowers and other information that will allow such Lender or the
Administrative Agent, as applicable, to identify each of the Borrowers in
accordance with the Act.

[Rest of page left intentionally blank]

64

 

     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.

	 	 	 	 	 	 	 
	 	 	ZIMMER HOLDINGS, INC.,
	 
	 	 	 	 	 	 
	

	 	by
	 	/s/ Sam R. Leno	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Name: Sam R. Leno	 	 
	

	 	 	 	Title: Executive Vice President, Corporate	 	 
	

	 	 	 	 Finance and Operations and Chief Financial	 	 
	

	 	 	 	Officer	 	 
	 
	 	 	 	 	 	 
	 	 	ZIMMER, INC.,
	 
	 	 	 	 	 	 
	

	 	by
	 	/s/ Sam R. Leno	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Name: Sam R. Leno	 	 
	

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK,
 individually
and as Administrative Agent,
	 
	 	 	 	 	 	 
	

	 	by
	 	/s/ DAWN LEE LUM	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Name: DAWN LEE LUM

Title: VICE PRESIDENT	 	 

65

 

	 	 	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO

ZIMMER HOLDINGS, INC. 364-DAY CREDIT

AGREEMENT DATED AS OF MAY 24, 2004
	 
	 	 	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 	 	 
	 	 	Zimmer Investments, LLC
	 
	 	 	 	 	 	 
	

	 	by
	 	/s/ James T. Crines	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Name: James T. Crines	 	 
	

	 	 	 	Title: President	 	 

 

 

	 	 	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO

ZIMMER HOLDINGS, INC. 364-DAY CREDIT

AGREEMENT DATED AS OF MAY 24, 2004
	 
	 	 	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 	 	 
	 	 	Zimmer Orthopaedic Surgical Products, Inc.
	 
	 	 	 	 	 	 
	

	 	by
	 	/s/ James T. Crines	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Name: James T. Crines	 	 
	

	 	 	 	Title: Vice President & Treasurer	 	 

 

 

	 	 	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO
ZIMMER HOLDINGS, INC. 364-DAY CREDIT AGREEMENT DATED AS OF MAY 24,
2004
	 
	 	 	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 	 	 
	 	 	Zimmer Production, Inc.
	 
	 	 	 	 	 	 
	

	 	by
	 	/s/ James T. Crines	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Name: James T. Crines	 	 
	

	 	 	 	Title: Vice President & Treasurer	 	 

 

 

	 	 	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO
ZIMMER HOLDINGS, INC. 365-DAY CREDIT AGREEMENT DATED AS OF MAY 24,
2004
	 
	 	 	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 	 	 
	 	 	Zimmer Technology, Inc.
	 
	 	 	 	 	 	 
	

	 	by
	 	/s/ James T. Crines	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Name: James T. Crines	 	 
	

	 	 	 	Title: Vice President & Treasurer	 	 

 

 

	 	 	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO
ZIMMER HOLDINGS, INC. 364-DAY CREDIT AGREEMENT DATED AS OF MAY 24,
2004
	 
	 	 	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 	 	 
	 	 	Zimmer US, Inc.
	 
	 	 	 	 	 	 
	

	 	by
	 	/s/ James T. Crines	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Name: James T. Crines	 	 
	

	 	 	 	Title: Vice President & Treasurer	 	 

 

 

	 	 	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO
ZIMMER HOLDINGS, INC. 364-DAY CREDIT AGREEMENT DATED AS OF MAY 24,
2004
	 
	 	 	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 	 	 
	 	 	Zimmer CEP USA Holding Co.
	 
	 	 	 	 	 	 
	

	 	by
	 	/s/ Sam R. Leno	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Name: Sam R. Leno	 	 
	

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO
ZIMMER HOLDINGS, INC. 364-DAY CREDIT AGREEMENT DATED AS OF MAY 24,
2004
	 
	 	 	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 	 	 
	 	 	Zimmer Spine, Inc.
	 
	 	 	 	 	 	 
	

	 	by
	 	/s/ Sam R. Leno	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Name: Sam R. Leno	 	 
	

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO
ZIMMER HOLDINGS, INC. 364-DAY CREDIT AGREEMENT DATED AS OF MAY 24,
2004
	 
	 	 	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 	 	 
	 	 	Zimmer Orthobiologics, Inc.
	 
	 	 	 	 	 	 
	

	 	by
	 	/s/ Sam R. Leno	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Name: Sam R. Leno	 	 
	

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO
ZIMMER HOLDINGS, INC. 364-DAY CREDIT AGREEMENT DATED AS OF MAY 24,
2004
	 
	 	 	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 	 	 
	 	 	Zimmer Dental, Inc.
	 
	 	 	 	 	 	 
	

	 	by
	 	/s/ Sam R. Leno	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Name: Sam R. Leno	 	 
	

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO
ZIMMER HOLDINGS, INC. 364-DAY CREDIT AGREEMENT DATED AS OF MAY 24,
2004
	 
	 	 	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 	 	 
	 	 	Zimmer CEP USA, Inc.
	 
	 	 	 	 	 	 
	

	 	by
	 	/s/ Sam R. Leno	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Name: Sam R. Leno	 	 
	

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO
ZIMMER HOLDINGS, INC. 364-DAY CREDIT AGREEMENT DATED AS OF MAY 24,
2004
	 
	 	 	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 	 	 
	 	 	Zimmer Austin, Inc.
	 
	 	 	 	 	 	 
	

	 	by
	 	/s/ Sam R. Leno	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Name: Sam R. Leno	 	 
	

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO
ZIMMER HOLDINGS, INC. 364-DAY CREDIT AGREEMENT DATED AS OF MAY 24,
2004
	 
	 	 	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 	 	 
	 	 	Zimmer Spine Surgical, Inc.
	 
	 	 	 	 	 	 
	

	 	by
	 	/s/ Sam R. Leno	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Name: Sam R. Leno	 	 
	

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 
	 	 	COUNTERPART SIGNATURE PAGE TO
ZIMMER HOLDINGS, INC. 364-DAY CREDIT AGREEMENT DATED AS OF MAY 24,
2004
	 
	 	 	 	 	 	 
	 	 	Subsidiary Guarantor:
	 
	 	 	 	 	 	 
	 	 	Implex Corp.
	 
	 	 	 	 	 	 
	

	 	by
	 	/s/ Sam R. Leno	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Name: Sam R. Leno	 	 
	

	 	 	 	Title: Vice President

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