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EXHIBIT 4.2    
    

        EXECUTION COPY  

 REGISTRATION RIGHTS AGREEMENT  

 Dated as of July 23, 2003  

 among  

 ROCKWOOD SPECIALTIES GROUP, INC.  

 ROCKWOOD PIGMENTS NA, INC.

LUREX INC.

ADVANTIS TECHNOLOGIES, INC.

ALPHAGARY CORPORATION

ELECTROCHEMICALS, INC.

CYANTEK CORPORATION

COMPUGRAPHICS U.S.A. INC.

EXSIL, INC.

SOUTHERN CLAY PRODUCTS, INC.

CHEMICAL SPECIALTIES, INC.

ROCKWOOD AMERICA INC.

ROCKWOOD SPECIALTIES INC.

SOUTHERN COLOR N.A., INC.

RS FUNDING CORPORATION  

 and  

 MERRILL LYNCH & CO.  

 MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,  

 J.P. MORGAN SECURITIES INC. and  

 GOLDMAN, SACHS & CO.  

 
TABLE OF CONTENTS  

	 
	 	 
	 	 
	 	Page

	1.	 	Definitions	 	1
	 	 	 	 	1933 Act	 	1
	 	 	 	 	1934 Act	 	1
	 	 	 	 	Affiliate	 	1
	 	 	 	 	Closing Date	 	1
	 	 	 	 	Company	 	1
	 	 	 	 	Depositary	 	1
	 	 	 	 	Exchange Notes	 	1
	 	 	 	 	Exchange Offer	 	1
	 	 	 	 	Exchange Offer Registration Statement	 	2
	 	 	 	 	Guarantors	 	2
	 	 	 	 	Holders	 	2
	 	 	 	 	Indenture	 	2
	 	 	 	 	Initial Purchasers	 	2
	 	 	 	 	Majority Holders	 	2
	 	 	 	 	Notes	 	2
	 	 	 	 	Participating Broker-Dealer	 	2
	 	 	 	 	Person	 	2
	 	 	 	 	Prospectus	 	2
	 	 	 	 	Purchase Agreement	 	2
	 	 	 	 	Registrable Notes	 	2
	 	 	 	 	Registration Expenses	 	2
	 	 	 	 	Registration Statement	 	3
	 	 	 	 	SEC	 	3
	 	 	 	 	Shelf Registration Statement	 	3
	 	 	 	 	Trustee	 	3
	2.	 	Registration Under the 1933 Act	 	3
	 	 	(a	)	Exchange Offer Registration	 	3
	 	 	(b	)	Shelf Registration	 	5
	 	 	(c	)	Expenses	 	6
	 	 	(d	)	Effective Registration Statement	 	6
	 	 	(e	)	Increase in Interest Rate	 	6
	 	 	(f	)	Specific Enforcement	 	7
	3.	 	Registration Procedures	 	7
	4.	 	Underwritten Registrations	 	13
	5.	 	Indemnification and Contribution	 	14
	6.	 	Miscellaneous	 	17
	 	 	(a	)	Rule 144 and Rule 144A	 	17
	 	 	(b	)	No Inconsistent Agreements	 	17
	 	 	(c	)	Amendments and Waivers	 	17
	 	 	(d	)	Notices	 	17
	 	 	(e	)	Successors and Assigns	 	18
	 	 	(f	)	Third Party Beneficiary	 	18
	 	 	(g	)	Counterparts	 	18
	 	 	(h	)	Headings	 	18
	 	 	(i	)	GOVERNING LAW	 	18
	 	 	(j	)	Severability	 	18

i

REGISTRATION RIGHTS AGREEMENT  

        This SENIOR SUBORDINATED NOTE REGISTRATION RIGHTS AGREEMENT (the "Agreement") is made and entered into as of
July 23, 2003, by and among ROCKWOOD SPECIALTIES GROUP, INC., a Delaware corporation (the "Company"), the subsidiary guarantors of the
Company listed in Schedule D of the Purchase Agreement (as defined below) (collectively, the
"Guarantors"), MERRILL LYNCH & CO., MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED ("Merrill
Lynch"), J.P. MORGAN SECURITIES INC. AND GOLDMAN, SACHS & CO. (collectively, the "Initial Purchasers"). 

        This
Agreement is made pursuant to the Purchase Agreement dated July 9, 2003 by and among the Company, the Guarantors and the Initial Purchasers (the
"Purchase Agreement"), which provides for the issue and sale by the Company and the purchase by the Initial Purchasers of $375,000,000 aggregate
principal amount of the Company's 105/8% Senior Subordinated Notes due 2011 (the "Notes"). In order to induce the Initial Purchasers to
enter into the Purchase Agreement, the Company and the Guarantors have agreed to provide to the Initial Purchasers and their respective direct and indirect transferees and assigns the registration
rights set forth in this Agreement. The execution and delivery of this Agreement is a condition to the closing under the Purchase Agreement. Capitalized terms used herein but not defined shall have
the meaning ascribed thereto in the indenture dated as of July 23, 2003, by and among the Company, the Guarantors and The Bank of New York, as Trustee, pursuant to which the Notes will be
issued (the "Indenture"). 

        In
consideration of the foregoing, the parties hereto agree as follows: 

        1.    Definitions.    As used in this Agreement, the following capitalized defined terms shall
have the following meanings:

        "1933 Act" shall mean the Securities Act of 1933, as amended from time to time, and the rules and regulations of the SEC promulgated
thereunder. 

        "1934 Act" shall mean the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations of the SEC
promulgated thereunder. 

        "Affiliate" of a Holder shall mean a person who controls, is controlled by or is under common control with such Holder or the spouse or
children (or a trust exclusively for the benefit of a spouse and/or children) of such Holder or, in the case of a Holder which is a partnership, its partners. 

        "Closing Date" shall mean July 23, 2003. 

        "Company" shall have the meaning set forth in the preamble of this Agreement and also includes the Company's successors. 

        "Depositary" shall mean The Depository Trust Company with respect to the Notes (other than the Notes issued in reliance on
Regulation S under the 1933 Act) and Euroclear System and Clearstream Banking with respect to the Notes issued in reliance on Regulation S under the 1933 Act, or any other depositary
appointed by the Company; provided, however, that any such depositary must have an address in the Borough of Manhattan, in the City of New York. 

        "Exchange Notes" shall mean 105/8% Senior Subordinated Notes due 2011 of the Company, issued under the Indenture and
containing terms identical to the Notes (except that (i) interest thereon shall accrue from the last date on which interest was paid on the Notes or, if no such interest was paid, from the date
on which the Notes were issued, (ii) the transfer restrictions thereon shall be eliminated and (iii) certain provisions relating to payment of additional interest shall be eliminated),
to be offered to Holders of Registrable Notes in exchange for Notes pursuant to the Exchange Offer. 

        "Exchange Offer" shall mean the exchange offer by the Company of Exchange Notes for Registrable Notes pursuant to Section 2(a)
hereof. 

 

        "Exchange Offer Registration Statement" shall mean an exchange offer registration statement on Form S-4 (or, if
applicable, on another appropriate form), and all amendments and supplements to such registration statement, in each case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein. 

        "Guarantors" shall have the meaning set forth in the preamble of this Agreement. 

        "Holders" shall mean the Initial Purchasers, for so long as they own any Registrable Notes, and each of their respective successors,
assigns and direct and indirect transferees who become registered owners of Registrable Notes under the Indenture. 

        "Indenture" shall have the meaning set forth in the preamble of this Agreement. 

        "Initial Purchasers" shall have the meaning set forth in the preamble of this Agreement. 

        "Majority Holders" shall mean the Holders of a majority of the aggregate principal amount of Registrable Notes outstanding;  provided, however, that whenever the consent
or approval of Holders of a specified percentage of Registrable Notes is required hereunder, Registrable
Notes held by the Company or any of its affiliates (as such term is defined in Rule 405 under the 1933 Act) shall be disregarded in determining whether such consent or approval was given by the
Holders of such required percentage or amount. 

        "Notes" shall have the meaning set forth in the preamble of this Agreement. 

        "Participating Broker-Dealer" shall have the meaning set forth in Section 3(f) hereof. 

        "Person" shall mean an individual, partnership, limited liability company, corporation, trust or unincorporated organization, or a
government or agency or political subdivision thereof. 

        "Prospectus" shall mean the prospectus included in a Registration Statement, including any preliminary prospectus, and any such prospectus
as amended or supplemented by any prospectus supplement, including a prospectus supplement with respect to the terms of the offering of any portion of the Registrable Notes covered by a Shelf
Registration Statement, and by all other amendments and supplements to a prospectus, including post-effective amendments, and in each case including all material incorporated by reference
therein. 

        "Purchase Agreement" shall have the meaning set forth in the preamble of this Agreement. 

        "Registrable Notes" shall mean the Notes; provided, however, that the Notes shall cease to
be Registrable Notes when (i) a Registration Statement with respect to such Notes shall have been declared effective under the 1933 Act and such Notes shall have been disposed of pursuant to
such Registration Statement, (ii) such Notes shall have been sold to the public pursuant to Rule 144(k) (or any similar provision then in force, but not Rule 144A) under the 1933
Act, (iii) such Notes shall have ceased to be
outstanding or (iv) such Notes have been exchanged for Exchange Notes upon consummation of the Exchange Offer. 

        "Registration Expenses" shall mean any and all expenses incident to performance of or compliance by the Company with this Agreement,
including without limitation: (i) all SEC, stock exchange or National Association of Securities Dealers, Inc. ("NASD") registration and
filing fees, (ii) all fees and expenses incurred in connection with compliance with state or other securities or blue sky laws and compliance with the rules of the NASD (including reasonable
fees and disbursements of one United States and local counsel for any underwriters and Holders in connection with state or other securities or blue sky qualification of any of the Exchange Notes or
Registrable Notes), (iii) all expenses of any Persons in preparing, word processing, printing and distributing any Registration Statement, any Prospectus, any amendments or supplements thereto,
any underwriting agreements, securities sales agreements, certificates representing the Exchange Notes and other documents relating to the performance of and compliance with this Agreement, 

2

 

(iv) all
rating agency fees, (v) all fees and expenses incurred in connection with the listing, if any, of any of the Registrable Notes on any securities exchange or exchanges,
(vi) all fees and disbursements relating to the qualification of the Indenture under applicable securities laws, (vii) the fees and disbursements of counsel for the Company and the
Guarantors and, in the case of a Shelf Registration Statement, the reasonable fees and disbursements (including the expenses of preparing and distributing any underwriting or securities sales
agreements) of one counsel for the Holders (which counsel shall be selected in writing by the Majority Holders), and of the independent public accountants of the Company and the Guarantors, including
the expenses of any special audits or "cold comfort" letters required by or incident to such performance and compliance, (viii) the fees and expenses of a "qualified independent underwriter" as
defined by Conduct Rule 2720 of the NASD, if required by the NASD rules, in connection with the offering of the Registrable Notes, and (ix) the fees and expenses of the Trustee,
including its counsel, and any escrow agent or custodian, and (x) in the case of any underwritten offering, any fees and disbursements of the underwriters customarily required to be paid by
issuers or sellers of securities and the reasonable fees and expenses of any special experts retained by the Company and the Guarantors in connection with any Registration Statement, but excluding
underwriting discounts and commissions and transfer taxes, if any, relating to the sale or disposition of Registrable Notes by a Holder. 

        "Registration Statement" shall mean any registration statement of the Company and the Guarantors relating to any offering of the Exchange
Notes or Registrable Notes pursuant to the provisions of this Agreement, and all amendments and supplements to any such Registration Statement, including post-effective amendments, in each
case including the Prospectus contained therein, all exhibits thereto and all material incorporated by reference therein. 

        "SEC" shall mean the Securities and Exchange Commission. 

        "Shelf Registration Statement" shall mean a shelf registration statement of the Company and the Guarantors pursuant to the provisions of
Section 2(b) of this Agreement which covers all of the Registrable Notes on an appropriate form under Rule 415 under the 1933 Act, or any similar rule that may be adopted by the SEC, and
all amendments and supplements to such registration statement, including post-effective amendments, in each case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein. 

        "Trustee" shall mean the Trustee under the Indenture. 

        2.    Registration Under the 1933 Act.    (a) Exchange Offer Registration. The Company and the Guarantors shall
for the benefit of the Holders of the Notes and at their own expense (A) file within 90 calendar days of the Closing Date an Exchange Offer Registration Statement with the SEC with respect to
the Exchange Offer to exchange the Notes for Exchange Notes, (B) use their reasonable best efforts to cause the Exchange Offer Registration Statement to be declared effective by the SEC under
the 1933 Act within 180 calendar days after the Closing Date, (C) to cause such Registration Statement to remain effective until the closing of the Exchange Offer and (D) use its
reasonable best efforts to consummate the Exchange Offer within 210 calendar days after the Closing Date. Upon the effectiveness of the Exchange Offer Registration Statement, the Company shall
promptly commence the Exchange Offer, it being the objective of such Exchange Offer to enable each Holder (other than Participating Broker-Dealers) eligible and electing to exchange Registrable Notes
for Exchange Notes (assuming that such Holder (i) is not an affiliate of the Company within the meaning of Rule 405 under the 1933 Act, (ii) acquires the Exchange Notes in the
ordinary course of such Holder's business and (iii) has no arrangements or understandings with any person to participate in the Exchange Offer for the purpose of distributing the Exchange
Notes) to trade such Exchange Notes from and after their receipt without any limitations or restrictions under the 1933 Act and without material restrictions under the securities laws of a substantial
proportion of the several states of the United States. 

3

 

        In
connection with the Exchange Offer, the Company and the Guarantors shall: 

          (i)  mail
to each Holder a copy of the Prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate letter of transmittal and related
documents; 

         (ii)  keep
the Exchange Offer open for at least 20 business days (or longer if required by applicable law) after the date notice thereof is mailed to the Holders; 

        (iii)  use
the services of the Depositary for the Exchange Offer with respect to Notes evidenced by global certificates; 

        (iv)  permit
Holders to withdraw tendered Registrable Notes at any time prior to 5:00 p.m., New York City time, on the last business day on which the Exchange Offer
shall remain open, by sending to the institution specified in the notice, a telegram, telex, facsimile transmission or letter setting forth the name of such Holder, the principal amount of Registrable
Notes delivered for exchange, and a statement that such Holder is withdrawing its election to have such Notes exchanged; and 

         (v)  otherwise
comply in all respects with all applicable federal and state laws relating to the Exchange Offer. 

        As
soon as practicable after the close of the Exchange Offer, the Company shall: 

          (i)  accept
for exchange Registrable Notes duly tendered and not validly withdrawn pursuant to the Exchange Offer in accordance with the terms of the Exchange Offer
Registration Statement and the letter of transmittal which is an exhibit thereto; 

         (ii)  deliver,
or cause to be delivered, to the Trustee for cancellation all Registrable Notes so accepted for exchange by the Company; and 

        (iii)  cause
the Trustee promptly to authenticate and deliver Exchange Notes to each Holder of Registrable Notes equal in principal amount to the principal of the Registrable
Notes of such Holder so accepted for exchange. 

        Interest
will accrue on each Exchange Note exchanged for a Registrable Note from the last date on which interest was paid on the Notes surrendered in exchange therefor. If no interest
has been paid on the Notes, such interest will accrue from the Closing Date. The Exchange Offer shall not be subject to any conditions, other than (i) that the Exchange Offer, or the making of
any exchange by a Holder, does not violate applicable law or any applicable interpretation of the staff of the SEC and (ii) the due tendering of Registrable Notes in accordance with the
Exchange Offer. Each Holder of Registrable Notes (other than Participating Broker-Dealers and other specified holders) who wishes to exchange such Registrable Notes for Exchange Notes in the Exchange
Offer (a) shall have represented that (I) it is not an affiliate (as defined in Rule 405 under the 1933 Act) of the Company or any Guarantor or, if it is such an affiliate, it
will comply with the registration and prospectus delivery requirements of the 1933 Act, (II) any Exchange Notes to be received by it were acquired in the ordinary course of its business,
(III) at the time of the commencement of the Exchange Offer it had no arrangement with any person to participate in the distribution (within the meaning of the 1933 Act) of the Exchange Notes
and (b) shall have made such other representations as may be necessary under applicable SEC rules, regulations or interpretations to render the use of Form S-4 or another
appropriate form under the 1933 Act available. The Company shall inform the Initial Purchasers of the names and addresses of the Holders to whom the Exchange Offer is made, and the Initial Purchasers
shall have the right to contact such Holders and otherwise facilitate the tender of Registrable Notes in the Exchange Offer. 

        The
Company shall make available for a period of up to 90 days after consummation of the Exchange Offer a prospectus meeting the requirements of the 1933 Act to any Participating
Broker-Dealer which acquired the Notes for its own account as a result of market making or other trading 

4

 

activities
and any other persons, if any, with similar prospectus delivery requirements, for use in connection with any resale of Exchange Notes. A Participating Broker-Dealer or any other person that
delivers such a prospectus to purchasers in connection with such resales shall be subject to certain of the civil liability provisions under the 1933 Act and shall be bound by the provisions of this
Agreement (including certain indemnification rights and obligations thereunder). 

        (b)    Shelf Registration.    In the event that (i) any changes in law or the applicable interpretations of the
staff of the SEC do not permit the Company to effect the Exchange Offer as contemplated by Section 2(a) hereof, (ii) if for any other reason the Exchange Offer is not consummated within
210 days following the Closing Date, (iii) any of the Initial Purchasers shall so request following the consummation of the Exchange Offer (if such Initial Purchaser shall hold
Registrable Notes that it acquired directly from the Company and if such Initial Purchaser is not permitted, in the opinion of counsel to such Initial Purchaser, pursuant to applicable law or
applicable interpretation of the staff of the SEC, to participate in the Exchange Offer) or (iv) if applicable law or applicable interpretations of the staff of the SEC do not permit any Holder
of Notes (other than the Initial Purchasers) to participate in the Exchange Offer, the Company and the Guarantors shall, at their own cost, 

        (A)  as
promptly as practicable, file with the SEC a Shelf Registration Statement relating to the offer and sale of the Registrable Notes by the Holders from time to time in
accordance with the methods of distribution elected by the Majority Holders of such Registrable Notes and set forth in such Shelf Registration Statement, and use their reasonable best efforts to cause
such Shelf Registration Statement to be declared effective by the SEC within 180 days after the Closing Date. In the event that the Company is required to file a Shelf Registration Statement
upon the request of any Initial Purchaser pursuant to clause (iii) above, or upon the request of any Holder (other than the Initial Purchaser) not eligible to participate in the Exchange Offer
pursuant to clause (iv) above, the Company and the Guarantors shall file and have declared effective by the SEC both an Exchange Offer Registration Statement pursuant to Section 2(a)
with respect to all Registrable Notes and a Shelf Registration Statement (which may be a combined Registration Statement with the Exchange Offer Registration Statement) with respect to offers and
sales of Registrable Notes held by such Holder or such Initial Purchaser, as applicable, after completion of the Exchange Offer; 

        (B)  use
their reasonable best efforts to keep the Shelf Registration Statement continuously effective, supplemented and amended as required, in order to permit the
Prospectus forming part thereof to be usable by Holders for a period of two years from the date the Shelf Registration Statement is declared effective by the SEC or such shorter period ending upon the
earlier of (x) all of the Registrable Notes covered by the Shelf Registration Statement being sold pursuant to the Shelf Registration Statement and (y) all of the Registrable Notes
covered by the Shelf Registration Statement becoming eligible for resale pursuant to Rule 144 under the 1933 Act without any volume restrictions; and 

        (C)  notwithstanding
any other provisions hereof, use its reasonable best efforts to ensure that (x) any Shelf Registration Statement and any amendment thereto and any
Prospectus forming a part thereof and any supplement thereto complies in all material respects with the 1933 Act and the rules and regulations thereunder, (y) any Shelf Registration Statement
and any amendment thereto does not, when it becomes effective, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading and (z) any Prospectus forming part of any Shelf Registration Statement, and any supplement to such Prospectus (as amended or supplemented from time to time),
does not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made,
not misleading. 

5

 

        The
Company and the Guarantors further agree, if necessary, to supplement or amend the Shelf Registration Statement if requested by the Majority Holders with respect to information
relating to the Holders and otherwise as required by Section 3(b) below, to use all reasonable efforts to cause any such amendment to become effective and such Shelf Registration to become
usable as soon as practicable thereafter and to furnish to the Holders of Registrable Notes copies of any such supplement or amendment promptly after its being used or filed with the SEC. 

        (c)    Expenses.    The Company and the Guarantors shall pay all Registration Expenses in connection with the
registration pursuant to Sections 2(a) and 2(b) hereof and, in the case of any Shelf Registration Statement, shall only reimburse the Holders or the Initial Purchasers for the reasonable fees
and disbursements of one counsel (in addition to any local counsel) designated in writing by the Majority Holders to act as counsel for the Holders of the Registrable Notes in connection therewith.
Each Holder shall pay all expenses of its counsel other than as set forth in the preceding sentence, underwriting discounts and commissions and transfer taxes, if any, relating to the sale or
disposition of such Holder's Registrable Notes pursuant to the Shelf Registration Statement. 

        (d)    Effective Registration Statement.    (i) The Company and the Guarantors shall be deemed not to have used
its reasonable best efforts to cause a Registration Statement to become, or to remain, effective during the requisite periods set forth herein if they voluntarily take any action that could reasonably
be expected to result in any such Registration Statement not being declared effective or in the Holders of Registrable Notes covered thereby not being able to exchange or offer and sell such
Registrable Notes during that period unless (A) such action is required by applicable law or (B) such action is taken by the Company and the Guarantors in good faith and for valid
business reasons (not including avoidance of the Company's and the Guarantors obligations hereunder), including a material corporate transaction, so long as the Company promptly complies with the
requirements of Section 3(k) hereof, if applicable, but in the case of each of clause (A) and clause (B) above, subject to the provisions of Section 2(e) hereof. 

         (ii)  An
Exchange Offer Registration Statement pursuant to Section 2(a) hereof or a Shelf Registration Statement pursuant to Section 2(b) hereof shall be deemed
not to have become effective unless it has been declared effective by the SEC; provided, however, that if, after it has been declared effective, the
offering of Registrable Notes pursuant to a Registration Statement is interfered with by any stop order, injunction or other order or requirement of the SEC or any other governmental agency or court,
such Registration Statement shall be deemed not to have been effective during the period of such interference, until the offering of Registrable Notes pursuant to such Registration Statement may
legally resume. 

        (e)    Increase in Interest Rate.    (i) In the event that (1) the Exchange Offer Registration Statement
is not filed with the SEC on or prior to the 90th calendar day after the Closing Date, (2) the Exchange Offer Registration Statement is not declared effective on or prior to the
180th calendar day after the Closing Date, (3) the Exchange Offer is not consummated on or prior to the 210th calendar day after the Closing Date, (4) a Shelf
Registration Statement with respect to the Registrable Notes is not declared effective on or prior to the 180th day after the Closing Date (or, in the case of a Shelf Registration
Statement required to be filed in response to any changes in applicable law or the applicable interpretations of the staff of the SEC, if later, within 90 days of the date of publication of
such change in law or interpretation, but in no event prior to 180 days after the Closing Date), or (5) the Shelf Registration Statement is filed and declared effective within the time
periods specified in clause (4) above but thereafter ceases to be effective or usable (at any time the Company and the Guarantors are obligated pursuant to this Agreement to maintain the
effectiveness thereof) without being succeeded within 90 days by an additional Shelf Registration Statement filed and declared effective (each such event referred to in clauses (1)
through (5) above, a "Registration Default"), the Company shall be required to pay additional interest in cash on each Interest Payment Date in an
amount equal to one-quarter of one percent (0.25%) per annum with respect to the first 90-day period 

6

 

following
such Registration Default. The amount of such additional interest will increase by an additional one-quarter of one percent (0.25%) per annum for each subsequent
90-day period until such Registration Default has been cured, up to a maximum of one percent (1.0%) per annum. Such additional interest shall cease to accrue when such Registration Default
has been cured (as determined by the last sentence of this paragraph). However, if, after any such additional interest ceases to accrue, a different Registration Default occurs, such additional
interest will again accrue under the foregoing provisions. Upon (v) the filing of the Exchange Offer Registration Statement after the 90 day period described in clause (1) above,
(w) the effectiveness of the Exchange Offer Registration Statement after the 180 day period described in clause (2) above, (x) the consummation of the Exchange Offer after
the 210 day period described in clause (3) above, (y) the effectiveness of a Shelf Registration Statement after the 180 day period (or, in the case of the events provided
in the parenthetical to clause (4) above, such later period as is provided in such parenthetical) described in clause (4) above, or (z) the Shelf Registration Statement again
becoming effective or usable as described in clause (5) above, and provided that none of the conditions set forth in clauses (1), (2), (3), (4) and (5) above continues to exist, a
Registration Default will be deemed to be cured. 

         (ii)  The
Company may, by notice to Holders in accordance with Section 6(d) of this Agreement, suspend the availability of the Shelf Registration Statement pending the
announcement by the Company of a material corporate transaction or as otherwise required by applicable securities laws without paying additional interest pursuant to Section 2(e)(i) of this
Agreement. In the event that the availability of the Shelf Registration Statement is suspended pursuant to the immediately preceding sentence for more than 60 days in the aggregate in any
consecutive twelve-month period (a "Registration Suspension Default"), the Company shall be required to pay additional interest in cash on each Interest
Payment Date equal to one-quarter of one percent (0.25%) per annum with respect to the first 90-day period following such Registration Suspension Default. The amount of such
additional interest will increase by an additional one-quarter of one percent (0.25%) per annum for each subsequent 90-day period until such Registration Suspension Default has
been cured, up to a maximum of one percent (1.0%) per annum. Such additional interest shall cease to accrue when such Registration Suspension Default has been cured. However, if, after any such
additional interest ceases to accrue, a different Registration Suspension Default occurs, such additional interest will again accrue under the foregoing provisions. 

        (f)    Specific Enforcement.    Without limiting the remedies available to the Initial Purchasers and the Holders, the
Company and the Guarantors acknowledge that any failure by the Company and the Guarantors to comply with their obligations under Sections 2(a) and 2(b) hereof may result in material irreparable
injury to the Initial Purchasers or the Holders for which there is no adequate remedy at law, that it shall not be possible to measure damages for such injuries precisely and that, in the event of any
such failure, the Initial Purchasers or any Holder may obtain such relief as may be required to specifically enforce the Company's and the Guarantors' obligations under Sections 2(a) and 2(b). 

        3.    Registration Procedures.    In connection with the obligations of the Company and the Guarantors with respect to
the Registration Statements pursuant to Sections 2(a) and 2(b) hereof, the Company and the Guarantors shall: 

        (a)   prepare
and file with the SEC a Registration Statement, within the time period specified in Section 2 hereof, on the appropriate form under the 1933 Act, which
form (i) shall be selected by the Company and the Guarantors, (ii) shall, in the case of a Shelf Registration, be available for the sale of the Registrable Notes by the selling Holders
thereof and (iii) shall comply as to form in all material respects with the requirements of the applicable form required by the SEC and include or incorporate by reference all financial
statements required by the SEC to be filed therewith, and use their reasonable best efforts to cause such Registration Statement to become effective and remain effective in accordance with
Section 2 hereof; 

7

 

        (b)   prepare
and file with the SEC such amendments and post-effective amendments to each Registration Statement as may be necessary under applicable law to keep
such Registration Statement effective for the applicable period; cause each Prospectus to be supplemented by any required prospectus supplement, and as so supplemented to be filed pursuant to
Rule 424 under the
1933 Act; and comply with the provisions of the 1933 Act with respect to the disposition of all Notes covered by each Registration Statement during the applicable period in accordance with the
intended method or methods of distribution by the selling Holders thereof; 

        (c)   in
the case of a Shelf Registration, (i) notify each Holder of Registrable Notes, at least ten days prior to filing, that a Shelf Registration Statement with
respect to the Registrable Notes is being filed and advising such Holders that the distribution of Registrable Notes will be made in accordance with the method elected by the Majority Holders;
(ii) furnish to each Holder of Registrable Notes, to counsel for the Initial Purchasers, to counsel for the Holders and to each underwriter of an underwritten offering of Registrable Notes, if
any, without charge, as many copies of each Prospectus, including each preliminary Prospectus, and any amendment or supplement thereto and such other documents as such Holder or underwriter may
reasonably request, including financial statements and schedules and, if the Holder so requests, all exhibits (including those incorporated by reference) in order to facilitate the public sale or
other disposition of the Registrable Notes; and (iii) subject to the last paragraph of this Section 3, hereby consent to the use of the Prospectus, including each preliminary Prospectus,
or any amendment or supplement thereto by each of the selling Holders of Registrable Notes in connection with the offering and sale of the Registrable Notes covered by the Prospectus or any amendment
or supplement thereto; 

        (d)   use
its reasonable best efforts to register or qualify the Registrable Notes under all applicable state securities or "blue sky" laws of such jurisdictions as any Holder
of Registrable Notes covered by a Registration Statement and each underwriter of an underwritten offering of Registrable Notes shall reasonably request by the time the applicable Registration
Statement is declared effective by the SEC, to cooperate with the Holders in connection with any filings required to be made with the NASD, to keep each such registration or qualification effective
during the period such Registration Statement is required to be effective and do any and all other acts and things which may be reasonably necessary or advisable to enable such Holder to consummate
the disposition in each such jurisdiction of such Registrable Notes owned by such Holder; provided, however, that the Company shall not be required to
(i) qualify as a foreign corporation or as a dealer in securities in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(d) or (ii) take
any action which would subject it to general service of process or taxation in any such jurisdiction if it is not then so subject; 

        (e)   in
the case of a Shelf Registration, notify each Holder of Registrable Notes and counsel for such Holders promptly and, if requested by such Holder or counsel, confirm
such advice in writing promptly (i) when a Shelf Registration Statement has become effective and when any post-effective amendments and supplements thereto become effective,
(ii) of any request by the SEC or any state securities authority for post-effective amendments and supplements to a Shelf Registration Statement and Prospectus or for additional
information after the Shelf Registration Statement has become effective, (iii) of the issuance by the SEC or any state securities authority of any stop order suspending the effectiveness of a
Registration Statement or the initiation of any proceedings for that purpose, (iv) if, between the effective date of a Registration Statement and the closing of any sale of Registrable Notes
covered thereby, the representations and warranties of the Company or any Guarator contained in any underwriting agreement, securities sales agreement or other similar agreement, if any, relating to
such offering cease to be true and correct in all material respects, (v) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable
Notes for sale in any jurisdiction or the initiation 

8

 

or
threatening of any proceeding for such purpose, (vi) of any stop order, injunction or other order or requirement of the SEC or any other governmental agency or court that interferes with the
offering of Registrable Notes pursuant to the Shelf Registration Statement or of the suspension of the availability of the Shelf Registration Statement and the use of a Prospectus pursuant to
Section 2(e)(ii) hereof or the happening of any event or the discovery of any facts during the period a Shelf Registration Statement is effective (including as contemplated in
Section 2(e)(ii) hereof) which makes any statement made in such Registration Statement or the related Prospectus untrue in any material respect or which requires the making of any changes in
such Registration Statement or Prospectus in order to make the statements therein not misleading and (vii) of any determination by the Company that a post-effective amendment to a
Registration Statement would be appropriate; 

        (f)    (A) in
the case of the Exchange Offer, (i) include in the Exchange Offer Registration Statement a "Plan of Distribution" section covering the use of the
Prospectus included in the Exchange Offer Registration Statement by broker-dealers who have exchanged their Registrable Notes for Exchange Notes for the resale of such Exchange Notes,
(ii) furnish to each broker-dealer who desires to participate in the Exchange Offer, without charge, as many copies of each Prospectus included in the Exchange Offer Registration Statement,
including any preliminary prospectus, and any amendment or supplement thereto, as such broker-dealer may reasonably request, (iii) include in the Exchange Offer Registration Statement a
statement that any broker-dealer who holds Registrable Notes acquired for its own account as a result of market-making activities or other trading activities (a "Participating
Broker-Dealer"), and who receives Exchange Notes for Registrable Notes pursuant to the Exchange Offer, may be a statutory underwriter and must deliver a prospectus meeting the
requirements of the 1933 Act in connection with any resale of such Exchange Notes, (iv) subject to the last paragraph of this Section 3, hereby consent to the use of the Prospectus
forming part of the Exchange Offer Registration Statement or any amendment or supplement thereto, by any broker-dealer in connection with the sale or transfer of the Exchange Notes covered by the
Prospectus or any amendment or supplement thereto, and (v) include in the transmittal letter or similar documentation to be executed by an exchange offeree in order to participate in the
Exchange Offer (x) the following provision: 

"If
the undersigned is not a broker-dealer, the undersigned represents that it is not engaged in, and does not intend to engage in, a distribution of Exchange Notes. If the undersigned is a
broker-dealer
that will receive Exchange Notes for its own account in exchange for Registrable Notes, it represents that the Registrable Notes to be exchanged for Exchange Notes were acquired by it as a result of
market-making activities or other trading activities and acknowledges that it will deliver a prospectus meeting the requirements of the 1933 Act in connection with any resale of such Exchange Notes
pursuant to the Exchange Offer; however, by so acknowledging and by delivering a prospectus, the undersigned will not be deemed to admit that it is an "underwriter" within the meaning of the 1933
Act"; 

and
(y) a statement to the effect that by a broker-dealer making the acknowledgment described in subclause (x) above and by delivering a Prospectus in connection with the exchange of
Registrable Notes, the broker-dealer will not be deemed to admit that it is an underwriter within the meaning of the 1933 Act; and 

        (B)  to
the extent any Participating Broker-Dealer participates in the Exchange Offer, the Company and the Guarantors shall use their best efforts to cause to be delivered at
the request of an entity representing the Participating Broker-Dealers (which entity shall be one of the Initial Purchasers, unless it elects not to act as such representative) one "cold comfort"
letter with respect to the Prospectus in the form existing on the last date for which exchanges are accepted pursuant to the Exchange Offer and with respect to each subsequent amendment or supplement,
if any, effected during the period specified in clause (C) below; and 

9

  

        (C)  to
the extent any Participating Broker-Dealer participates in the Exchange Offer, the Company and the Guarantors shall use their reasonable best efforts to maintain the
effectiveness of the Exchange Offer Registration Statement for a period of 90 days following the closing of the Exchange Offer or such shorter period which will terminate when the Participating
Broker-Dealers have completed all resales subject to applicable prospectus delivery requirements; and 

        (D)  the
Company and the Guarantors shall not be required to amend or supplement the Prospectus contained in the Exchange Offer Registration Statement as would otherwise be
contemplated by Section 3(b) hereof, or take any other action as a result of this Section 3(d), for a period exceeding 90 days after the last date for which exchanges are accepted
pursuant to the Exchange Offer (as such period may be extended by the Company) and Participating Broker-Dealers shall not be authorized by the Company to, and shall not, deliver such Prospectus after
such period in connection with resales contemplated by this Section 3. 

        (g)   (A) in
the case of an Exchange Offer or Shelf Registration Statement, furnish counsel for the Initial Purchasers and (B) in the case of a Shelf
Registration, furnish counsel for the Holders of Registrable Notes, copies of any request by the SEC or any state securities authority for amendments or supplements to a Registration Statement and
Prospectus or for additional information; 

        (h)   use
their reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement as soon as practicable and provide
immediate notice to each Holder of the withdrawal of any such order; 

        (i)    in
the case of a Shelf Registration, furnish to each Holder of Registrable Notes and each underwriter, if any, without charge, at least one conformed copy of each
Registration Statement and any post-effective amendment thereto (without documents incorporated therein by reference or exhibits thereto, unless requested); 

        (j)    in
the case of a Shelf Registration, cooperate with the selling Holders of Registrable Notes to facilitate the timely preparation and delivery of certificates
representing Registrable Notes to be sold and not bearing any restrictive legends; and cause such Registrable Notes to be in such denominations (consistent with the provisions of the Indenture) in a
form eligible for deposit with the Depositary and registered in such names as the selling Holders or the underwriters, if any, may reasonably request at least one business day prior to the closing of
any sale of Registrable Notes; 

        (k)   in
the case of a Shelf Registration, promptly upon the occurrence of any event or the discovery of any facts, each as contemplated by
Section 3(e)(vi) hereof, use their reasonable best efforts to prepare a supplement or post-effective amendment to a Registration Statement or the related Prospectus or any
document incorporated therein by reference or file any other required document so that, as thereafter delivered to the purchasers of the Registrable Notes, such Prospectus will not contain at the time
of such delivery any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading. The Company agrees to notify each Holder to suspend use of the Prospectus as promptly as practicable after the occurrence of such an event, and, subject to the provisions of
Section 2(e)(ii) hereof, each Holder hereby agrees to suspend use of the Prospectus until the Company has amended or supplemented the Prospectus to correct such misstatement or omission.
At such time as such public disclosure is otherwise made or the Company determines that such disclosure is not necessary, in each case to correct any misstatement of a material fact or to include any
omitted material fact, the Company agrees promptly to notify each Holder of such determination and to furnish each Holder such numbers of copies of the Prospectus, as amended or supplemented, as such
Holder may reasonably request; 

10

 

        (l)    obtain
CUSIP numbers for all Exchange Notes, or Registrable Notes, as the case may be, not later than the effective date of a Registration Statement, and provide the
Trustee with certificates for the Exchange Notes or the Registrable Notes, as the case may be, in a form eligible for deposit with the Depositary; 

        (m)  (i) cause
the Indenture to be qualified under the Trust Indenture Act of 1939, as amended (the "TIA"), in
connection with the registration of the Exchange Notes or Registrable Notes, as the case may be, (ii) cooperate with the Trustee and the Holders to effect such changes to the Indenture as may
be required for the Indenture to be so qualified in accordance with the terms of the TIA and (iii) execute, and use their reasonable best efforts to cause the Trustee to execute, all documents
as may be required to effect such changes, and all other forms and documents required to be filed with the SEC to enable the Indenture to be so qualified in a timely manner; 

        (n)   in
the case of a Shelf Registration, enter into agreements (including underwriting agreements) and take all other customary and appropriate actions (including those
reasonably requested by the Majority Holders) in order to expedite or facilitate the disposition of such Registrable Notes and in such connection, whether or not an underwriting agreement is entered
into and whether or not the registration is an underwritten registration: 

        (i)    make
such representations and warranties to the Holders of such Registrable Notes and the underwriters, if any, in form, substance and scope substantially similar to
those made by the Company and the Guarantors in the Purchase Agreement, with such changes, additions and modifications as may
be reasonably requested by the Holders or their counsel to reflect that the offering of the Registrable Notes in such case will be registered with the SEC; 

        (ii)   obtain
opinions of counsel to the Company and its subsidiaries and updates thereof (which counsel shall be reasonably satisfactory to the managing underwriters, if any,
and the holders of a majority in principal amount of the Registrable Notes being sold) addressed to each selling Holder and which opinions shall be in form, scope and substance substantially similar
to those required in the Purchase Agreement, with such changes, additions and modifications as may be reasonably requested by the Holders or their counsel to reflect that the offering of the
Registrable Notes in such case will be registered with the SEC (which opinions shall be reasonably satisfactory to the managing underwriters, if any, and the holders of a majority in principal amount
of the Registrable Notes being sold); 

        (iii)  obtain
"cold comfort" letters and updates thereof from the Company's and the Guarantors' independent certified public accountants addressed to the underwriters, if
any, and will use reasonable best efforts to have such letters addressed to the selling Holders of Registrable Notes, such letters to be in customary form and covering matters of the type customarily
covered in "cold comfort" letters to underwriters in connection with similar underwritten offerings; 

        (iv)  enter
into a securities sales agreement with the Holders and an agent of the Holders providing for, among other things, the appointment of such agent for the selling
Holders for the purpose of soliciting purchases of Registrable Notes, which agreement shall be in form, substance and scope customary for similar offerings; 

        (v)   if
an underwriting agreement is entered into in the case of an underwritten offering, cause the same to set forth indemnification provisions and procedures substantially
equivalent to the indemnification provisions and procedures set forth in Section 5 hereof with respect to the underwriters and all other parties to be indemnified pursuant to Section 5
hereof; and 

        (vi)  deliver
such documents and certificates as may be reasonably requested and as are customarily delivered in similar offerings. 

11

 

The
above shall be done at (i) the effectiveness of such Registration Statement (and, if appropriate, each post-effective amendment thereto) and (ii) each closing under any
underwriting or similar agreement as and to the extent required thereunder. In the case of any underwritten offering, the Company shall provide written notice to the Holders of all Registrable Notes
of such underwritten offering at least 30 days prior to the filing of a prospectus supplement for such underwritten offering. Such notice shall (x) offer each such Holder the right to
participate in such underwritten offering,
(y) specify a date, which shall be no earlier than 10 calendar days following the date of such notice, by which such Holder must inform the Company of its intent to participate in such
underwritten offering and (z) include the instructions such Holder must follow in order to participate in such underwritten offering; 

        (o)   in
the case of a Shelf Registration, make available for inspection by representatives of the Holders of the Registrable Notes and any underwriter participating in any
disposition pursuant to a Shelf Registration Statement and any counsel or accountant retained by such Holders or underwriters, all financial and other records, pertinent corporate documents and
properties of the Company and the Guarantors reasonably requested by any such Persons, and cause the respective officers, directors, employees, and any other agents of the Company and the Guarantors
to supply all information reasonably requested by any such representative, underwriter, special counsel or accountant in connection with such Registration Statement; provided,
however, that such Persons shall first agree in writing with the Company and the Guarantors that any information that is reasonably and in good faith designated by the Company
and the Guarantors in writing as confidential at the time of delivery of such information shall be kept confidential by such Persons, unless (i) disclosure of such information is required by
court or administrative order or is necessary to respond to inquiries of regulatory authorities, (ii) disclosure of such information is required by law (including any disclosure requirements
pursuant to federal securities laws in connection with the filing of such Registration Statement or the use of any Prospectus), (iii) such information becomes generally available to the public
other than as a result of a disclosure or failure to safeguard such information by such Person or (iv) such information becomes available to such person from a source other than the Company and
its subsidiaries and such source is not known, after due inquiry, by the relevant Holder to be bound by a confidentiality agreement or is not otherwise under a duty of trust to the Company and the
Guarantors. 

        (p)   (i) a
reasonable time prior to the filing of any Exchange Offer Registration Statement, any Prospectus forming a part thereof, any amendment to an Exchange Offer
Registration Statement or amendment or supplement to a Prospectus, provide copies of such document to the Initial Purchasers, and make such changes in any such document prior to the filing thereof as
any of the Initial Purchasers or their counsel may reasonably request; (ii) in the case of a Shelf Registration, a reasonable time prior to filing any Shelf Registration Statement, any
Prospectus forming a part thereof, any amendment to such Shelf Registration Statement or amendment or supplement to such Prospectus, provide copies of such document to the Holders of Registrable
Notes, to the Initial Purchasers, to counsel on behalf of the Holders and to the underwriter or underwriters of an underwritten offering of Registrable Notes, if any, and make such changes in any such
document prior to the filing thereof as counsel to any of the Initial Purchasers or any underwriter may request; and (iii) cause the representatives of the Company and its subsidiaries to be
available for discussion of such document as shall be reasonably requested by the Holders of Registrable Notes, the Initial Purchasers on behalf of such Holders or any underwriter, and shall not at
any time make any filing of any such document of which such Holders, the Initial Purchasers on behalf of such Holders, their counsel or any underwriter shall not have previously been advised and
furnished a copy or to which such Holders, the Initial Purchasers on behalf of such Holders, their counsel or any underwriter shall reasonably object within a reasonable time period; 

12

 

        (q)   in
the case of a Shelf Registration, use their reasonable best efforts to cause all Registrable Notes to be listed on any securities exchange on which similar debt
securities issued by the Company are then listed if requested by the Majority Holders or by the underwriter or underwriters of an underwritten offering of Registrable Notes, if any; 

        (r)   in
the case of a Shelf Registration, use their reasonable best efforts to cause the Registrable Notes to be rated with the appropriate rating agencies, if so requested
by the Majority Holders of any class of Registrable Notes or by the underwriters of any underwritten offering of Registrable Notes, if any, unless the Registrable Notes are already so rated; 

        (s)   otherwise
use their reasonable best efforts to comply with all applicable rules and regulations of the SEC and make available to their security holders, as soon as
reasonably practicable, an earnings statement covering at least 12 months which shall satisfy the provisions of Section 11(a) of the 1933 Act and Rule 158 thereunder; and 

        (t)    cooperate
and assist in any filings required to be made with the NASD and in the performance of any due diligence investigation by any underwriter and its counsel. 

        In
the case of a Shelf Registration Statement, the Company may (as a condition to such Holder's participation in the Shelf Registration) require each Holder of Registrable Notes to
furnish to the Company such information regarding such Holder and the proposed distribution by such Holder of such Registrable Notes as the Company may from time to time reasonably request in writing,
and the Company may exclude from such registration the Registrable Notes of any Holder that fails to furnish such information within a reasonable time after receiving such request. No Holder of
Registrable Notes shall be entitled to additional interest as provided in such Holder's Registrable Notes unless and until such Holder shall have used its reasonable best efforts to provide all such
information. 

        In
the case of a Shelf Registration Statement, each Holder agrees that, upon receipt of any notice from the Company of the happening of any event or the discovery of any facts, each of
the kind described in Section 3(e) hereof, such Holder will forthwith discontinue disposition of Registrable Notes pursuant to a Registration Statement until such Holder's receipt of the copies
of the supplemented or amended Prospectus contemplated by Section 3(k) hereof, and, if so directed by the Company, such Holder will deliver to the Company (at the Company's expense) all copies
in its possession, other than permanent file copies then in such Holder's possession, of the Prospectus covering such Registrable Notes current at the time of receipt of such notice. If the Company
shall give any such notice to suspend the disposition of Registrable Notes pursuant to a Shelf Registration Statement as a result of the happening of any event or the discovery of any facts, each of
the kind described in Section 3(e)(vi) hereof, the Company and the Guarantors shall be deemed to have used their reasonable best efforts to keep the Shelf Registration Statement
effective during such period of suspension; provided that (i) such period of suspension shall not exceed the time periods provided in
Section 2(e)(ii) hereof and (ii) the Company and the Guarantors shall use their reasonable best efforts to file and have declared effective (if an amendment) as soon as
practicable an amendment or supplement to the Shelf Registration Statement and shall extend the period during which the Registration Statement shall be maintained effective pursuant to this Agreement
by the number of days during the
period from and including the date of the giving of such notice to and including the date when the Holders shall have received copies of the supplemented or amended Prospectus necessary to resume such
dispositions; provided further that nothing in this sentence shall be deemed to eliminate the Company's obligations to pay additional interest in
accordance with Section 2(e)(ii) hereof. 

        4.    Underwritten Registrations.    If any of the Registrable Notes covered by any Shelf Registration are to be sold
in an underwritten offering, the investment banker or investment bankers and manager or managers that will manage the offering shall be selected by the Majority Holders of such Registrable Notes
included in such offering; and shall be reasonably acceptable to the Company. 

13

 

        No
Holder of Registrable Notes may participate in any underwritten registration hereunder unless such Holder (a) agrees to sell such Holder's Registrable Notes on the basis
provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements and (b) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents required under the terms of such underwriting arrangements. 

        5.    Indemnification and Contribution.    (a) The Company and the Guarantors, jointly and severally, agree to
indemnify and hold harmless each Initial Purchaser, each Holder, including Participating Broker-Dealers, each underwriter who participates in an offering of Registrable Notes, their respective
affiliates, and their respective directors, officers, employees, agents and each Person, if any, who controls any of such parties within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act as follows: 

        (i)    against
any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material
fact contained in any Registration Statement (or any amendment thereto) pursuant to which Exchange Notes or Registrable Notes were registered under the 1933 Act, including all documents incorporated
therein by reference, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading or arising out of any
untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a material fact
necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; 

        (ii)   against
any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any litigation, or
any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever, in each case, based upon any such untrue statement or omission, or any such
alleged untrue statement or omission; provided that (subject to Section 5(d) below) any such settlement is effected with the written consent of
the Company; and 

        (iii)  against
any and all expenses whatsoever, as incurred (including the reasonable fees and disbursements of one counsel chosen by any indemnified party), reasonably
incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any court or governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under subparagraph (i) or
(ii) of this Section 5(a); 

provided, however, that this indemnity does not apply to any loss, liability, claim, damage or expense to the extent arising out of an untrue statement
or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by the Initial Purchasers, any Holder, including
Participating Broker-Dealers, or any underwriter expressly for use in the Registration Statement (or any amendment thereto) or the Prospectus (or any amendment or supplement thereto);  provided further
that the Company will not be liable to any Initial Purchaser, any Holder, including any Participating Broker-Dealer, or any underwriter
with respect to any preliminary prospectus to the extent that the Company shall sustain the burden of proving that any such loss, liability, claim, damage or expense resulted from the fact that such
Initial Purchaser, Holder, Participating Broker-Dealer or underwriter in contravention of a requirement under applicable law, sold Registrable Notes to a person to whom such Initial Purchaser, Holder,
Participating Broker-Dealer or underwriter failed to send or give a copy of the final prospectus, as then amended or supplemented if (i) the Company has previously furnished copies thereof
(sufficiently in advance to allow for proper delivery on or prior to the written confirmation of the sale of Registrable Notes) to the Initial 

14

 

Purchaser,
Holder, Participating Broker-Dealer or underwriter and the loss, liability, claim, damage or expense of such Initial Purchaser, Holder, Participating Broker-Dealer or underwriter resulted
from an untrue statement or omission of a material fact contained in or omitted from the preliminary prospectus which was corrected in the final prospectus as, if applicable, amended or supplemented
prior to the written confirmation of the sale of Registrable Notes and such final prospectus was required by law to be delivered at or prior to the written confirmation of sale to such person and
(ii) such failure to give or send such final prospectus by the written confirmation of sale of Registrable Notes to the party or parties asserting such loss, liability, claim, damage or expense
would have constituted the sole defense to the claim asserted by such person. 

        (b)   In
the case of a Shelf Registration, each Holder agrees, severally and not jointly, to indemnify and hold harmless the Company the Guarantors, each Initial Purchaser,
each underwriter who participates in an offering of Registrable Notes and the other selling Holders and each of their respective directors and officers (including each officer of the Company and any
Guarantor who signed the Registration Statement) and each Person, if any, who controls the Company, any Guarantor, any Initial Purchaser, any underwriter or any other selling Holder within the meaning
of Section 15 of the 1933 Act or Section 20 of the 1934 Act, against any and all loss, liability, claim, damage and expense described in the indemnity contained in Section 5(a)
hereof, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Shelf Registration Statement (or any amendment thereto) or the
Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company and the Guarantors by such Holder, as the case may be,
expressly for use in the Shelf Registration Statement (or any
amendment thereto), or the Prospectus (or any amendment or supplement thereto); provided, however, that no such Holder shall be liable for any claims
hereunder in excess of the amount of net proceeds received by such Holder from the sale of Registrable Notes pursuant to such Shelf Registration Statement. 

        (c)   In
case any action shall be commenced involving any person in respect of which indemnity may be sought pursuant to paragraph (a) or paragraph (b) above,
such person (the "indemnified party") shall give notice as promptly as reasonably practicable to each person against whom such indemnity may be sought
(the "indemnifying party"), but failure to so notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder to the
extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. If any such
claim or action shall be brought against an indemnified party, and it shall notify the indemnifying party thereof, the indemnifying party shall be entitled to participate therein and, to the extent
that it wishes, jointly with any other similarly notified indemnifying party, to assume the defense thereof with counsel reasonably satisfactory to the indemnified party. After notice from the
indemnifying party to the indemnified party of its election to assume the defense of such claim or action, the indemnifying party shall not be liable to the indemnified party under this
Section 5 for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof other than reasonable costs of investigation;  provided, however, that
an indemnified party shall have the right to employ its own counsel in any such action, but the fees, expenses and other charges
of such counsel for the indemnified party will be at the expense of such indemnified party unless (w) the employment of counsel by the indemnified party has been authorized in writing by the
indemnifying party, (x) the indemnified party has reasonably concluded that there may be legal defenses available to it or other indemnified parties that are different or in addition to those
available to the indemnifying party, (y) a conflict or potential conflict exists between the indemnified party and the indemnifying party or (z) the indemnifying party has not in fact
employed counsel reasonably satisfactory to the indemnified party to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of
which cases the reasonable fees, disbursements and other charges of counsel will be at the 

15

 

expense
of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be
liable for the reasonable fees, disbursements and other charges of more than one separate firm of attorneys (in addition to any local counsel) at any one time for all such indemnified party or
parties. Each indemnified party, as a condition of the indemnity agreements contained in Sections 5(a) and 5(b), shall use all reasonable efforts to cooperate with the indemnifying party in the
defense of any such action or claim. No indemnifying party shall, without the prior written consent of the indemnified parties (which consent shall not be unreasonably withheld), settle or compromise
or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in
respect of which indemnification or contribution could be sought under this Section 5 hereof (whether or not the indemnified parties are actual or potential parties thereof), unless such
settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and
(ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party; 

        (d)   If
at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel for which they are
entitled to indemnification hereunder, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 5(a)(ii) hereof effected without
its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall
have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such
indemnified party in accordance with such request prior to the date of such settlement. 

        (e)   If
the indemnification provided for in any of the indemnity provisions set forth in this Section 5 is for any reason unavailable to or insufficient to hold
harmless an indemnified party in respect of any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying party shall contribute to the aggregate amount of such
losses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred, (i) in such proportion as is appropriate to reflect the relative benefits received by such
indemnifying party or parties on the one hand, and such indemnified party or parties on the other hand, from the offering of the Exchange Notes or Registrable Notes included in such offering or
(ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in
clause (i) above but also the relative fault of such indemnifying party or parties on the one hand, and such indemnified party or parties on the other hand, in connection with the statements or
omissions which resulted in such losses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations. The relative fault of such indemnifying party or parties on
the one hand, and such indemnified party or parties on the other hand shall be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or
omission or alleged omission to state a material fact relates to information supplied by such indemnifying party or parties, and such indemnified party or parties and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company, the Guarantors, the Initial Purchasers and the Holders of the Registrable Notes agree
that it would not be just and equitable if contribution pursuant to this Section 5 were determined by pro rata allocation (even if the Holders were treated as one entity, and the Initial
Purchasers were treated as one entity, for such purpose) or by another method of allocation which does not take account of the equitable considerations referred to above in Section 5. The
aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 5 

16

 

shall
be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding
by an governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For
purposes of this Section 5, each Person, if any, who controls an Initial Purchaser or a Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall
have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company or any Guarantor, each officer of the Company who signed the Registration Statement, and each
Person, if any, who controls the Company or any Guarantor within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the
Company. The parties hereto agree that any underwriting discount or commission or reimbursement of fees paid to the Initial Purchasers pursuant to the Purchase Agreement shall not be deemed to be a
benefit received by the Initial Purchasers in connection with the offering of the Exchange Notes or Registrable Notes included in such offering. 

        6.    Miscellaneous.    (a) Rule 144 and Rule 144A. For so long as the Company is subject to the
reporting requirements of Section 13 or 15(d) of the 1934 Act, the Company covenants that it shall file the reports required to be filed by it under Section 13(a) or 15(d) of the 1934
Act and the rules and regulations adopted by the SEC thereunder, and that if it ceases to be so required to file such reports, it shall upon the request of any Holder of Registrable Notes
(i) make publicly available such information as is necessary to permit sales pursuant to Rule 144 under the 1933 Act, (ii) deliver such information to a prospective purchaser as
is necessary to permit sales pursuant to Rule 144A under the
1933 Act, and (iii) take such further action that is reasonable in the circumstances, in each case, to the extent required from time to time to enable such Holder to sell its Registrable Notes
without registration under the 1933 Act within the limitation of the exemptions provided by (x) Rule 144 under the 1933 Act, as such Rule may be amended from time to time,
(y) Rule 144A under the 1933 Act, as such Rule may be amended from time to time, or (z) any similar rules or regulations hereafter adopted by the SEC. Upon the reasonable written
request of any Holder of Registrable Notes, the Company shall deliver to such Holder a written statement as to whether it has complied with such requirements. 

        (b)    No Inconsistent Agreements.    The Company and the Guarantors have not entered into, nor shall the Company and
the Guarantors on or after the date of this Agreement enter into, any agreement which is inconsistent with the rights granted to the Holders of Registrable Notes in this Agreement or otherwise
conflicts with the provisions hereof. The rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent with the rights granted to the holders of the Company's other
issued and outstanding securities under any such agreements. 

        (c)    Amendments and Waivers.    The provisions of this Agreement, including the provisions of this sentence, may not
be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given unless the Company and the Guarantors have obtained the written consent of
Holders of at least a majority in aggregate principal amount at maturity of the outstanding Registrable Notes affected by such amendment, modification, supplement, waiver or departure;  provided, however,
 that no amendment, modification, supplement or waiver or consent to any departure from the provisions of Section 5 hereof
shall be effective as against any Holder of Registrable Notes unless consented to in writing by such Holder. 

        (d)    Notices.    All notices and other communications provided for or permitted hereunder shall be made in writing
by hand-delivery, registered first-class mail, telecopier or any courier guaranteeing overnight delivery (i) if to a Holder (other than an Initial Purchaser), at the most current
address set forth on the records of the Registrar under the applicable Indenture, (ii) if to an Initial Purchaser, at the most current address given by that Initial Purchaser to the Company by 

17

 

means
of a notice given in accordance with the provisions of this Section 6(d), which address initially is the address set forth in Section 12 of the Purchase Agreement; and
(iii) if to the Company and the Guarantors, initially at the addresses set forth in Section 12 of the Purchase Agreement and thereafter at such other address, notice of which has been
given in accordance with the provisions of this Section 6(d). 

        All
such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five business days after being deposited in the mail,
postage prepaid, if mailed; when receipt is acknowledged, if telecopied; and on the next business day if timely delivered to an air courier guaranteeing overnight delivery. 

        Copies
of all such notices, demands, or other communications shall be concurrently delivered by the Person giving the same to the Trustee, at the address specified in the applicable
Indenture. 

        (e)    Successors and Assigns.    This Agreement shall inure to the benefit of and be binding upon the successors,
assigns and transferees of each of the parties, including, without limitation and without the need for an express assignment, subsequent Holders;  provided that nothing herein shall be deemed to permit
any assignment, transfer or other disposition of Registrable Notes in violation of the terms
hereof or of the Purchase Agreement or the applicable Indenture. If any transferee of any Holder shall acquire Registrable Notes, in any manner, whether by operation of law or otherwise, such
Registrable Notes shall be held subject to all of the terms of this Agreement, and by taking and holding such Registrable Notes, such Person shall be conclusively deemed to have agreed to be bound by
and to perform all of the terms and provisions of this Agreement, including the restrictions on resale set forth in this Agreement and, if applicable, the Purchase Agreement, and such Person shall be
entitled to receive the benefits hereof. 

        (f)    Third Party Beneficiary.    The Holders shall be third party beneficiaries to the agreements made hereunder
between the Company, on the one hand, and the Initial Purchasers, on the other hand, and shall have the right to enforce such agreements directly to the extent it deems such enforcement necessary or
advisable to protect its rights or the rights of Holders hereunder. 

        (g)    Counterparts.    This Agreement may be executed in any number of counterparts and by the parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 

        (h)    Headings.    The headings in this Agreement are for convenience of reference only and shall not limit or
otherwise affect the meaning hereof. 

        (i)    GOVERNING LAW.    THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK, UNITED STATES OF AMERICA. 

        (j)    Severability.    In the event that any one or more of the provisions contained herein, or the application
thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained
herein shall not be affected or impaired thereby. 

18

 

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. 

	 	 	ROCKWOOD SPECIALTIES GROUP, INC.
	

 	
 	
By:	

/s/ Thomas J. Riordan
	 	 	 	
 Name: Thomas J. Riordan

Title: Vice President
	

 	
 	
ROCKWOOD PIGMENTS NA, INC.
	

 	
 	
By:	

/s/ Thomas J. Riordan
	 	 	 	
 Name: Thomas J. Riordan

Title: Vice President
	

 	
 	
LUREX INC.
	

 	
 	
By:	

/s/ Thomas J. Riordan
	 	 	 	
 Name: Thomas J. Riordan

Title: Vice President
	

 	
 	

By:	

/s/ Thomas J. Riordan
	 	 	 	
 Name: Thomas J. Riordan

Title: Vice President
	

 	
 	
ADVANTIS TECHNOLOGIES, INC.
	

 	
 	
By:	

/s/ Thomas J. Riordan
	 	 	 	
 Name: Thomas J. Riordan

Title: Vice President
	

 	
 	
ALPHAGARY CORPORATION
	

 	
 	
By:	

/s/ Thomas J. Riordan
	 	 	 	
 Name: Thomas J. Riordan

Title: Vice President
	 	 	 	 

19

 

	

 	
 	
ELECTROCHEMICALS, INC.
	

 	
 	
By:	

/s/ Thomas J. Riordan
	 	 	 	
 Name: Thomas J. Riordan

Title: Vice President
	

 	
 	
CYANTEK CORPORATION
	

 	
 	
By:	

/s/ Thomas J. Riordan
	 	 	 	
 Name: Thomas J. Riordan

Title: Vice President
	

 	
 	
COMPUGRAPHICS U.S.A. INC.
	

 	
 	
By:	

/s/ Thomas J. Riordan
	 	 	 	
 Name: Thomas J. Riordan

Title: Vice President
	

 	
 	
EXSIL, INC.
	

 	
 	
By:	

/s/ Thomas J. Riordan
	 	 	 	
 Name: Thomas J. Riordan

Title: Vice President
	

 	
 	
SOUTHERN CLAY PRODUCTS, INC.
	

 	
 	
By:	

/s/ Thomas J. Riordan
	 	 	 	
 Name: Thomas J. Riordan

Title: Vice President
	

 	
 	
CHEMICAL SPECIALTIES, INC.
	

 	
 	
By:	

/s/ Thomas J. Riordan
	 	 	 	
 Name: Thomas J. Riordan

Title: Vice President
	 	 	 	 

20

 

	

 	
 	
ROCKWOOD AMERICA INC.
	

 	
 	
By:	

/s/ Thomas J. Riordan
	 	 	 	
 Name: Thomas J. Riordan

Title: Vice President
	

 	
 	
ROCKWOOD SPECIALTIES INC.
	

 	
 	
By:	

/s/ Thomas J. Riordan
	 	 	 	
 Name: Thomas J. Riordan

Title: Vice President
	

 	
 	
SOUTHERN COLOR N.A., INC.
	

 	
 	
By:	

/s/ Thomas J. Riordan
	 	 	 	
 Name: Thomas J. Riordan

Title: Vice President
	

 	
 	
RS FUNDING CORPORATION
	

 	
 	
By:	

/s/ Thomas J. Riordan
	 	 	 	
 Name: Thomas J. Riordan

Title: Vice President

CONFIRMED AND ACCEPTED,

    as of the date first above written: 

MERRILL
LYNCH & CO.

MERRILL LYNCH, PIERCE, FENNER & SMITH

                              INCORPORATED

J.P. MORGAN SECURITIES INC.

GOLDMAN, SACHS & CO. 

By:
MERRILL LYNCH, PIERCE, FENNER & SMITH

                              INCORPORATED 

	By:	/s/ A. Melvani	 
	 	
 Name: A. Melvani

Title: Vice President	 

21

 

For
itself and as Representatives of the other Initial Purchasers named in Schedule A to the Purchase Agreement. 

22

QuickLinks

EXHIBIT 4.2QuickLinks
 -- Click here to rapidly navigate through this document

 
 

EXHIBIT 10.1    
    

CREDIT
AGREEMENT 

Dated
as of July 23, 2003 

among

ROCKWOOD
SPECIALTIES GROUP, INC.,

as US Borrower 

ROCKWOOD
SPECIALTIES LIMITED,

as UK Borrower 

ROCKWOOD
SPECIALTIES INTERNATIONAL, INC.,

as a Guarantor 

ROCKWOOD
SPECIALTIES CONSOLIDATED, INC. and

ROCKWOOD HOLDINGS, INC.,

as Parent Companies 

The
Several Lenders

from Time to Time Parties Hereto 

JPMORGAN
CHASE BANK,

as Administrative Agent 

MERRILL
LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

as Joint Lead Arranger and Syndication Agent 

GOLDMAN
SACHS CREDIT PARTNERS L.P.,

as Co-Documentation Agent 

GENERAL
ELECTRIC CAPITAL CORPORATION,

as Co-Documentation Agent 

and 

J.P.
MORGAN SECURITIES INC.,

as Joint Lead Arranger 

[CS&M
Reference No. 06701-326] 

 
Table of Contents  

	 
	 	 
	 	Page

	SECTION 1.    Definitions	 	2
	 	

1.1	
 	

Defined Terms	
 	

2
	 	

1.2	
 	

Exchange Rates	
 	

35
	 	

1.3	
 	

Redenomination of Certain Foreign Currencies	
 	

36
	

SECTION 2.    Amount and Terms of Credit	
 	

36
	 	

2.1	
 	

Commitments	
 	

36
	 	

2.2	
 	

Minimum Amount of Each Borrowing; Maximum Number of Borrowings	
 	

38
	 	

2.3	
 	

Notice of Borrowing	
 	

38
	 	

2.4	
 	

Disbursement of Funds	
 	

39
	 	

2.5	
 	

Repayment of Loans; Evidence of Debt	
 	

40
	 	

2.6	
 	

Conversions and Continuations	
 	

42
	 	

2.7	
 	

Pro Rata Borrowings	
 	

43
	 	

2.8	
 	

Interest	
 	

43
	 	

2.9	
 	

Interest Periods	
 	

44
	 	

2.10	
 	

Increased Costs, Illegality, etc.	
 	

45
	 	

2.11	
 	

Compensation	
 	

47
	 	

2.12	
 	

Change of Lending Office	
 	

47
	 	

2.13	
 	

Notice of Certain Costs	
 	

47
	

SECTION 3.    Letters of Credit	
 	

48
	 	

3.1	
 	

Letters of Credit	
 	

48
	 	

3.2	
 	

Letter of Credit Requests	
 	

48
	 	

3.3	
 	

Letter of Credit Participations	
 	

49
	 	

3.4	
 	

Agreement to Repay Letter of Credit Drawings	
 	

50
	 	

3.5	
 	

Increased Costs	
 	

51
	 	

3.6	
 	

Successor Letter of Credit Issuer	
 	

52
	

SECTION 4.    Fees; Commitments	
 	

52
	 	

4.1	
 	

Fees	
 	

52
	 	

4.2	
 	

Voluntary Reduction of Revolving Credit Commitments	
 	

53
	 	

4.3	
 	

Mandatory Termination of Commitments	
 	

53
	

SECTION 5.    Payments	
 	

54
	 	

5.1	
 	

Voluntary Prepayments	
 	

54
	 	

5.2	
 	

Mandatory Prepayments	
 	

54
	 	 	 	 	 

i

 

	 	

5.3	
 	

Method and Place of Payment	
 	

57
	 	

5.4	
 	

Net Payments	
 	

58
	 	

5.5	
 	

Computations of Interest and Fees	
 	

60
	

SECTION 6.    Conditions Precedent to Initial Borrowing	
 	

60
	 	

6.1	
 	

Credit Documents	
 	

60
	 	

6.2	
 	

Collateral	
 	

61
	 	

6.3	
 	

Legal Opinions	
 	

62
	 	

6.4	
 	

No Default	
 	

62
	 	

6.5	
 	

Receipt of Subordinated Notes and New Senior Notes Proceeds	
 	

63
	 	

6.6	
 	

Equity Contributions	
 	

63
	 	

6.7	
 	

Closing Certificates	
 	

63
	 	

6.8	
 	

Corporate Proceedings of Each Credit Party	
 	

63
	 	

6.9	
 	

Corporate Documents	
 	

63
	 	

6.10	
 	

Fees	
 	

63
	 	

6.11	
 	

Representations and Warranties	
 	

63
	 	

6.12	
 	

Refinancing	
 	

63
	

SECTION 7.    Conditions Precedent to All Credit Events	
 	

64
	 	

7.1	
 	

No Default; Representations and Warranties	
 	

64
	 	

7.2	
 	

Notice of Borrowing; Letter of Credit Request	
 	

64
	

SECTION 8.    Representations, Warranties and Agreements	
 	

64
	 	

8.1	
 	

Corporate Status	
 	

64
	 	

8.2	
 	

Corporate Power and Authority	
 	

64
	 	

8.3	
 	

No Violation	
 	

64
	 	

8.4	
 	

Litigation	
 	

65
	 	

8.5	
 	

Margin Regulations	
 	

65
	 	

8.6	
 	

Governmental Approvals	
 	

65
	 	

8.7	
 	

Investment Company Act	
 	

65
	 	

8.8	
 	

True and Complete Disclosure	
 	

65
	 	

8.9	
 	

Financial Condition; Financial Statements	
 	

66
	 	

8.10	
 	

Tax Returns and Payments	
 	

66
	 	

8.11	
 	

Compliance with ERISA	
 	

66
	 	

8.12	
 	

Subsidiaries	
 	

67
	 	

8.13	
 	

Patents, etc.	
 	

67
	 	 	 	 	 

ii

 

	 	

8.14	
 	

Environmental Laws	
 	

67
	 	

8.15	
 	

Properties	
 	

68
	 	

8.16	
 	

Compliance with Financial Assistance Laws	
 	

68
	

SECTION 9.    Affirmative Covenants	
 	

68
	 	

9.1	
 	

Information Covenants	
 	

68
	 	

9.2	
 	

Books, Records and Inspections	
 	

71
	 	

9.3	
 	

Maintenance of Insurance	
 	

71
	 	

9.4	
 	

Payment of Taxes	
 	

71
	 	

9.5	
 	

Consolidated Corporate Franchises	
 	

71
	 	

9.6	
 	

Compliance with Statutes, Obligations, etc.	
 	

71
	 	

9.7	
 	

ERISA	
 	

72
	 	

9.8	
 	

Good Repair	
 	

72
	 	

9.9	
 	

Transactions with Affiliates	
 	

72
	 	

9.10	
 	

End of Fiscal Years; Fiscal Quarters	
 	

73
	 	

9.11	
 	

Additional Guarantors and Grantors	
 	

73
	 	

9.12	
 	

Pledges of Additional Stock and Evidence of Indebtedness	
 	

74
	 	

9.13	
 	

Use of Proceeds	
 	

75
	 	

9.14	
 	

Changes in Business	
 	

75
	 	

9.15	
 	

Further Assurances	
 	

75
	 	

9.16	
 	

UK Borrower	
 	

76
	 	

9.17	
 	

UK Financial Assistance	
 	

76
	 	

9.18	
 	

Post Closing Collateral Obligations	
 	

76
	

SECTION 10.    Negative Covenants	
 	

78
	 	

10.1	
 	

Limitation on Indebtedness	
 	

78
	 	

10.2	
 	

Limitation on Liens	
 	

81
	 	

10.3	
 	

Limitation on Fundamental Changes	
 	

82
	 	

10.4	
 	

Limitation on Sale of Assets	
 	

85
	 	

10.5	
 	

Limitation on Investments	
 	

86
	 	

10.6	
 	

Limitation on Dividends	
 	

87
	 	

10.7	
 	

Limitations on Debt Payments and Amendments	
 	

88
	 	

10.8	
 	

Limitations on Sale Leasebacks	
 	

89
	 	

10.9	
 	

Consolidated Total Debt to Consolidated EBITDA Ratio	
 	

89
	 	

10.10	
 	

Consolidated EBITDA to Consolidated Interest Expense Ratio	
 	

90
	 	 	 	 	 

iii

 

	 	

10.11	
 	

Capital Expenditures	
 	

90
	

SECTION 11.    Events of Default	
 	

92
	 	

11.1	
 	

Payments	
 	

92
	 	

11.2	
 	

Representations, etc.	
 	

92
	 	

11.3	
 	

Covenants	
 	

92
	 	

11.4	
 	

Default Under Other Agreements	
 	

92
	 	

11.5	
 	

Bankruptcy, etc	
 	

92
	 	

11.6	
 	

ERISA	
 	

93
	 	

11.7	
 	

Guarantee	
 	

93
	 	

11.8	
 	

Pledge Agreement	
 	

93
	 	

11.9	
 	

Security Agreement	
 	

93
	 	

11.10	
 	

Mortgages	
 	

94
	 	

11.11	
 	

Foreign Guarantees	
 	

94
	 	

11.12	
 	

Foreign Security Documents	
 	

94
	 	

11.13	
 	

Subordination	
 	

94
	 	

11.14	
 	

Judgments	
 	

94
	 	

11.15	
 	

Change of Control	
 	

94
	

SECTION 12.    The Administrative Agent	
 	

95
	 	

12.1	
 	

Appointment	
 	

95
	 	

12.2	
 	

Delegation of Duties	
 	

95
	 	

12.3	
 	

Exculpatory Provisions	
 	

95
	 	

12.4	
 	

Reliance by Administrative Agent	
 	

95
	 	

12.5	
 	

Notice of Default	
 	

96
	 	

12.6	
 	

Non-Reliance on Administrative Agent and Other Lenders	
 	

96
	 	

12.7	
 	

Indemnification	
 	

96
	 	

12.8	
 	

Administrative Agent in its Individual Capacity	
 	

97
	 	

12.9	
 	

Successor Agent	
 	

97
	

SECTION 13.    Collateral Allocation Mechanism	
 	

97
	 	

13.1	
 	

Implementation of CAM	
 	

97
	 	

13.2	
 	

Letters of Credit	
 	

98
	 	

13.3	
 	

Net Payments Upon Implementation of CAM Exchange	
 	

99
	

SECTION 14.    Miscellaneous	
 	

100
	 	

14.1	
 	

Amendments and Waivers	
 	

100
	 	 	 	 	 

iv

 

	 	

14.2	
 	

Notices	
 	

101
	 	

14.3	
 	

No Waiver Cumulative; Remedies	
 	

102
	 	

14.4	
 	

Survival of Representations and Warranties	
 	

103
	 	

14.5	
 	

Payment of Expenses and Taxes	
 	

103
	 	

14.6	
 	

Successors and Assigns; Participations and Assignments	
 	

103
	 	

14.7	
 	

Replacements of Lenders under Certain Circumstances	
 	

106
	 	

14.8	
 	

Adjustments; Set-off	
 	

106
	 	

14.9	
 	

Counterparts	
 	

107
	 	

14.10	
 	

Severability	
 	

107
	 	

14.11	
 	

Integration	
 	

107
	 	

14.12	
 	

GOVERNING LAW	
 	

107
	 	

14.13	
 	

Submission to Jurisdiction; Waivers	
 	

107
	 	

14.14	
 	

Acknowledgments	
 	

108
	 	
14.15	
 	
WAIVERS OF JURY TRIAL	
 	

108
	 	

14.16	
 	

Confidentiality	
 	

108
	 	

14.17	
 	

Judgment Currency	
 	

109

v

 

	SCHEDULES	 	 
	

Schedule 1	
 	

Existing Letters of Credit
	Schedule 1.1 (a)	 	Additional Cost
	Schedule 1.1 (b)	 	Mortgaged Properties
	Schedule 1.1 (c)	 	Commitments and Addresses of Lenders
	Schedule 8.12	 	Subsidiaries
	Schedule 9.18	 	Post-Closing Lien Searches
	Schedule 10.1	 	Closing Date Indebtedness
	Schedule 10.2	 	Closing Date Liens
	Schedule 10.5	 	Closing Date Investments

	EXHIBITS	 	 
	

Exhibit A-1	
 	

Form of Canadian Guarantee
	Exhibit A-2	 	Forms of Canadian Pledge Agreements
	Exhibit A-3	 	Form of Canadian Security Agreement
	Exhibit B	 	Forms of French Pledge Agreements
	Exhibit C-1	 	Forms of German Abstract Acknowledgements of Indebtedness
	Exhibit C-2	 	Form of German Assignment of Claims
	Exhibit C-3	 	Form of German Guarantee
	Exhibit C-4	 	Form of German Negative Pledge Agreement
	Exhibit C-5	 	Form of German Pledge Agreement
	Exhibit C-6	 	Form of Existing German Pledge Agreement
	Exhibit C-7	 	Forms of German Conditional Security Agreements
	Exhibit C-8	 	Amendment to Existing German Abstract Acknowledgement of Indebtedness
	Exhibit C-9	 	German Pledge Agreement (Brockhues)
	Exhibit D	 	Form of Guarantee
	Exhibit E-1	 	Form of Italian Guarantee
	Exhibit E-2	 	Forms of Italian Share Pledge Agreements
	Exhibit E-3	 	Form of Italian Trademark Pledge Agreement
	Exhibit F	 	Form of Mortgage (Real Property)
	Exhibit G	 	Form of Perfection Certificate
	Exhibit H	 	Form of Pledge Agreement
	Exhibit I	 	Form of Security Agreement
	Exhibit J-1	 	Form of Singapore Guarantee
	Exhibit J-2	 	Forms of Singapore Pledge Agreements
	Exhibit J-3	 	Form of Singapore Security Agreement
	Exhibit K	 	Forms of Taiwan Pledge Agreements
	Exhibit L- I	 	Form of UK Debenture
	Exhibit L-2	 	Form of UK Guarantee
	Exhibit L-3	 	Forms of UK Pledge Agreements
	Exhibit M	 	Form of Letter of Credit Request
	Exhibit N-I	 	Form of Legal Opinion of Simpson Thacher & Bartlett LLP
	Exhibit N-2	 	Form of Legal Opinion of General Counsel
	Exhibit N-3	 	Form of Legal Opinion of Norton Rose
	Exhibit N-4	 	Form of Legal Opinion of Norton Rose Vieregge
	Exhibit N-5	 	Forms of Legal Opinions of Norton Rose Studio Legale
	Exhibit N-6	 	Form of Legal Opinion of Borden Ladner Gervais LLP
	Exhibit N-7	 	Form of Legal Opinion of Bredin Prat
	Exhibit N-8	 	Form of Legal Opinion of Allen and Gledhill
	Exhibit N-9	 	Form of Legal Opinion of Lee and Li
	Exhibit N-10	 	Form of Legal Opinion of Local Counsel
	Exhibit O	 	Form of Closing Certificate
	Exhibit P	 	Form of Assignment and Acceptance
	Exhibit Q-1	 	Form of Promissory Note (Tranche A Term Loans)
	Exhibit Q-2	 	Form of Promissory Note (Tranche B Term Loans)
	Exhibit Q-3	 	Form of Promissory Note (Tranche B-1 Term Loans)
	Exhibit Q-4	 	Form of Promissory Note (Revolving Credit and Swingline Loans)
	Exhibit R	 	Form of Confidentiality Agreement

vi

  

CREDIT
AGREEMENT dated as of July 23, 2003, among ROCKWOOD SPECIALTIES GROUP, INC., a Delaware corporation (the "US Borrower"), ROCKWOOD
SPECIALTIES LIMITED, a company incorporated under the laws of England and Wales (the "UK Borrower"), ROCKWOOD SPECIALTIES INTERNATIONAL, INC., a
Delaware corporation ("Holdings"), ROCKWOOD SPECIALTIES CONSOLIDATED, INC., a Delaware corporation ("PIK
Holdco"), ROCKWOOD HOLDINGS, INC., a Delaware corporation ("Parent" and, together with PIK Holdco, the
"Parent Companies"), the lending institutions from time to time parties hereto (each a "Lender" and,
collectively, the "Lenders"), JPMORGAN CHASE BANK, as Administrative Agent (such term and each other capitalized term used but not defined in this
introductory statement having the meaning provided in Section 1), MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as Syndication Agent, and GOLDMAN SACHS CREDIT PARTNERS L.P. and
GENERAL ELECTRIC CAPITAL CORPORATION, as Co-Documentation Agents. 

        In
connection with the Refinancing, (a)(i) an investment entity controlled by KKR will contribute not less than $25,000,000 (the "Equity
Proceeds") in cash to Parent as common equity or Qualified Preferred Stock, (ii) Parent will immediately thereafter contribute the entire amount of the Equity Proceeds
in cash to PIK Holdco as common equity or Qualified Preferred Stock, (iii) PIK Holdco will immediately thereafter contribute the entire amount of the Equity Proceeds in cash to Holdings as
common equity and (iv) Holdings will immediately thereafter contribute the entire amount of the Equity Proceeds in cash to the US Borrower as common equity (collectively, the
"Investor Equity Contribution"); 

        (b)   Holdings
will (i) issue not less than $70,000,000 in initial accreted value ($111,600,000 aggregate principal amount at maturity) of its 12.0% Senior Discount
Notes due 2011 (the "New Senior Notes") to the New Senior Notes Purchasers, which New Senior Notes the New Senior Notes Purchasers will immediately
thereafter sell to KKR or an Affiliate of KKR, and (ii) contribute the entire proceeds of such issuance in cash to the US Borrower as common equity (collectively, the
"New Notes Equity Contribution"); and 

        (c)   the
US Borrower will issue not less than $375,000,000 in aggregate principal amount of its senior subordinated notes (the "Subordinated
Notes") in a public offering or in a Rule 144A or other private placement. 

        In
connection with the foregoing, the US Borrower and the UK Borrower have requested the Lenders to extend credit in the form of (a) Term Loans, in an aggregate principal amount
of $435,000,000, and (b) Revolving Credit Loans at any time and from time to time prior to the Revolving Credit Maturity Date, in an aggregate principal amount at any time outstanding not in
excess of $100,000,000 less the sum of (i) the aggregate Letter of Credit Outstanding at such time and (ii) the aggregate principal
amount of all Swingline Loans outstanding at such time. The US Borrower and the UK Borrower have requested (a) the Letter of Credit Issuer to issue Letters of Credit at any time and from time
to time prior to the L/C Maturity Date, in an aggregate face amount at any time outstanding not in excess of $35,000,000 and (b) to deem the letters of credit issued by the Letter of Credit
Issuer pursuant to the Existing Credit Agreement (the "Existing Letters of Credit") and identified on Schedule 1 hereto to be Letters of Credit
for all purposes under this Agreement. The US Borrower and the UK Borrower have requested JPMCB to extend credit in the form of Swingline Loans at any time and from time to time prior to the Swingline
Maturity Date, in an aggregate principal amount at any time outstanding not in excess of $25,000,000. 

        The
proceeds of the Term Loans will be used by the US Borrower and the UK Borrower, together with (a) the net proceeds of the issuance of the Subordinated Notes, (b) the
net proceeds of the Investor Equity Contribution, (c) the net proceeds of the New Notes Equity Contribution and (d) cash of the US Borrower, on the Closing Date solely to effect the
Refinancing and to pay Transaction Expenses of approximately $11,300,000. Proceeds of Revolving Credit Loans and Swingline Loans will 

1

 

be
used by the US Borrower and the UK Borrower after the Closing Date for general corporate purposes (including Permitted Acquisitions). Letters of Credit will be used by the US Borrower and the UK
Borrower for general corporate purposes. 

        The
parties hereto hereby agree as follows: 

        SECTION
1.    Definitions    

        1.1    Defined Terms.    (a) As used herein, the following terms shall have the meanings specified in this
Section 1.1 unless the context otherwise requires (it being understood that defined terms in this Agreement shall include in the singular number the plural and in the plural the singular): 

        "ABR" shall mean, for any day, a rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to the
greatest of (a) the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%. Any change in the ABR due to a change
in the Prime Rate or the Federal Funds Effective Rate shall be effective as of the opening of business on the effective day of such change in the Prime Rate or the Federal Funds Effective Rate,
respectively. 

        "ABR Loan" shall mean each Loan bearing interest at the rate provided in Section 2.8(a) and, in any event, shall include all
Swingline Loans. 

        "Acquired EBITDA" shall mean, with respect to any Acquired Entity or Business, any Converted Restricted Subsidiary, any Sold Entity or
Business or any Converted Unrestricted Subsidiary (any of the foregoing, a "Pro Forma Entity") for any period, the sum of the amounts for such period of, without duplication, (a) income from
continuing operations before income taxes and extraordinary items, (b) interest expense, (c) depreciation expense, (d) amortization expense, including amortization of deferred
financing fees, (e) non-recurring charges, (f) non-cash charges, (g) losses on asset sales and (h) restructuring charges or reserves less the sum of
the amounts for such period of (i) non-recurring gains, (j) non-cash gains, (k) gains on asset sales and (1) interest income, all as determined on a
consolidated basis for such Pro Forma Entity in accordance with GAAP. 

        "Acquired Entity or Business" shall have the meaning provided in the definition of the term "Consolidated EBITDA". 

        "Additional Cost" shall mean, in relation to any Foreign Currency Borrowing denominated in Sterling, the cost as calculated by the
Administrative Agent in accordance with Schedule 1.1 (a) imputed to each Lender participating in such Sterling Borrowing of compliance with the mandatory liquid assets requirements of
the Financial Services Authority during the applicable Interest Period, expressed as a percentage. 

        "Adjusted Total Revolving Credit Commitment" shall mean at any time the Total Revolving Credit Commitment less the aggregate Revolving
Credit Commitments of all Defaulting Lenders. 

        "Adjusted Total Term Loan Commitment" shall mean at any time the Total Term Loan Commitment less the Term Loan Commitments of all
Defaulting Lenders. 

        "Administrative Agent" shall mean JPMCB, together with its affiliates, as the arranger of the Commitments and as the administrative agent
for the Lenders under this Agreement and the other Credit Documents. With respect to Foreign Currency Borrowings, the Administrative Agent may be an Affiliate of JPMCB for purposes of administering
such Borrowings, and all references herein to the term "Administrative Agent" shall be deemed to refer to the Administrative Agent in respect of the applicable Borrowing or to all Administrative
Agents, as the context requires. 

        "Administrative Agent's Office" shall mean (a) in respect of Credit Events denominated in Dollars, the office of the Administrative
Agent located at 1111 Fannin Street, Houston, TX 77002, 

2

 

or
such other office as the Administrative Agent may hereafter designate in writing as such to the other parties hereto and (b) in respect of all other Credit Events, the office of J.P. Morgan
Europe Limited located at 125 London Wall, London EC2Y5AJ or such other office in London as the Administrative Agent may hereafter designate in writing as such to the other parties hereto. 

        "Affiliate" shall mean, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under direct or
indirect common control with such Person. A Person shall be deemed to control a corporation if such Person possesses, directly or indirectly, the power (a) to vote 10% or more of the securities
having ordinary voting power for the election of directors of such corporation or (b) to direct or cause the direction of the management and policies of such corporation, whether through the
ownership of voting securities, by contract or otherwise. 

        "Agents" shall mean the Administrative Agent, the Syndication Agent and the Documentation Agents. 

        "Aggregate Revolving Credit Outstanding" shall have the meaning provided in Section 5.2(b). 

        "Agreement" shall mean this Credit Agreement, as the same may be amended, supplemented or otherwise modified from time to time. 

        "Amendment to Existing German Abstract Acknowledgement of Indebtedness" shall mean the Agreement substantially in the form of
Exhibit C-8. 

        "Amortization Amount" shall have the meaning provided in Section 5.2(c). 

        "Applicable ABR Margin" shall mean at any date, (a) with respect to each ABR Loan that is a Tranche B Term Loan, 2.25%, and
(b) with respect to each ABR Loan that is a Revolving Credit Loan or a Swingline Loan, the applicable percentage per annum set forth below based upon the Status in effect on such date: 

	Loan
	 	Status
	 	Applicable ABR

Margin
	 
	Revolving Credit Loans and Swingline Loans	 	Level I Status	 	2.25	%
	 	 	Level II Status	 	2.00	%
	 	 	Level III Status	 	1.75	%
	 	 	Level IV Status	 	1.50	%

        Notwithstanding
the foregoing, the term "Applicable ABR Margin" shall mean, with respect to each ABR Loan that is a Revolving Credit Loan or a Swingline Loan, 2.25%, during the period
from and including the Closing Date to but excluding the Initial Financial Statement Delivery Date. 

        "Applicable Eurodollar Margin" shall mean at any date, (a) with respect to each Eurodollar Loan that is a Tranche B Term Loan or a
Tranche B-1 Term Loan, 3.50%, and (b) with respect to 

3

 

each
Eurodollar Loan that is a Revolving Credit Loan or a Tranche A Term Loan, the applicable percentage per annum set forth below based upon the Status in effect on such date: 

	Loan
	 	Status
	 	Applicable

Eurodollar Margin
	 
	Revolving Credit Loans and Tranche A Term Loans	 	Level I Status	 	3.50	%
	 	 	Level II Status	 	3.25	%
	 	 	Level III Status	 	3.00	%
	 	 	Level IV Status	 	2.75	%

        Notwithstanding
the foregoing, the term "Applicable Eurodollar Margin" shall mean, with respect to each Eurodollar Loan that is a Revolving Credit Loan or a Tranche A Term Loan, 3.50%,
during the period from and including the Closing Date to but excluding the Initial Financial Statement Delivery Date. 

        "Approved Fund" shall have the meaning provided in Section 14.6. 

        "Asset Sale Prepayment Event" shall mean any sale, transfer or other disposition of any business units, assets or other properties of the
US Borrower or any of the Restricted Subsidiaries not in the ordinary course of business (including any sale, transfer or other disposition of any capital stock of any Subsidiary of the US Borrower
owned by the US Borrower or a Restricted Subsidiary). Notwithstanding the foregoing, the term "Asset Sale Prepayment Event" shall not include any transaction permitted by Section 10.4, other
than transactions permitted by Sections 10.4(b) and (e). 

        "Assignment and Acceptance" shall mean an assignment and acceptance substantially in the form of Exhibit P. 

        "Authorized Officer" shall mean the Chairman of the Board, the President, the Chief Financial Officer, the Treasurer or any other senior
officer of the US Borrower designated as such in writing to the Administrative Agent by the US Borrower. 

        "Available Amount" shall mean, on any date (the "Reference Date"), an amount equal at such
time to (a) the sum of, without duplication, (i) for the purposes of Section 10.5(j), Section 10.5(m), Section 10.11(b) and the first proviso to Section 10.7
(to the extent, in the case of the first proviso to Section 10.7, that the Consolidated Total Debt to Consolidated EBITDA Ratio at such time and after giving effect to the prepayment,
repurchase, redemption or defeasance to be completed on the Reference Date is less than 2.25 to 1.00), $135,000,000 in aggregate, (ii) the aggregate amount of Net Cash Proceeds from Prepayment
Events refused by Term Loan Lenders and retained by the US Borrower or the UK Borrower, as the case may be, in accordance with Section 5.2(c)(iv) after the Closing Date and on or prior
to the Reference Date, (iii) an amount equal to (x) the cumulative amount of Excess Cash Flow for all fiscal years completed after the Closing Date and prior to the Reference Date  minus (y) the portion of such Excess Cash Flow that has been after the Closing Date and on or prior to the Reference Date (or will be) applied to
(A) the prepayment of Loans in accordance with Section 5.2(a)(ii), (B) the payment and or distribution of dividends by the US Borrower to Holdings to pay cash interest of the New
Senior Notes in accordance with Section 10.6(f) or (C) the redemption, repurchase or retirement of the New Senior Notes or the PIK Notes in accordance with Section 10.6(g),
(iv) the amount of any capital contributions (other than the Investor Equity Contribution, the New Notes Equity Contribution and any PIK Proceeds Equity Contribution) made in cash to the US
Borrower from and including the Business Day immediately following the Closing Date through and including the Reference Date, including contributions with the proceeds from any issuance of equity
securities by any of the Parent Companies or Holdings, (v) the aggregate amount of all cash dividends and other cash 

4

 

distributions
received by the US Borrower or any Guarantor from any Minority Investments or Unrestricted Subsidiaries after the Closing Date and on or prior to the Reference Date (other than the
portion of any such dividends and other distributions that is used by the US Borrower or any Guarantor to pay taxes), (vi) the aggregate amount of all cash repayments of principal received by
the US Borrower or any Guarantor from any Minority Investments or Unrestricted Subsidiaries after the Closing Date and on or prior to the Reference Date in respect of loans made by the US Borrower or
any Guarantor to such Minority Investments or Unrestricted Subsidiaries and (vii) the aggregate amount of all net cash proceeds received by the US Borrower or any Guarantor in connection with
the sale, transfer or other disposition of its ownership interest in any Minority Investment or Unrestricted Subsidiary after the Closing Date and on or prior to the Reference Date  minus (b) the
sum at such time of (i) the aggregate amount of any investments (including loans) made by the US Borrower or any Restricted
Subsidiary pursuant to Section 10.5(j) or Section 10.5(m) after the Closing Date and on or prior to the Reference Date, (ii) the aggregate amount of Capital Expenditures made by
the US Borrower or any of the Restricted Subsidiaries after the Closing Date and on or prior to the Reference Date pursuant to Section 10.11(b) and (iii) the aggregate price paid by the
US Borrower in connection with any prepayment, repurchase or redemption of the Subordinated Notes pursuant to Section 10.7(a) after the Closing Date and on or prior to the Reference Date. 

        "Available Excess Cash Flow" shall mean at any time (the "Reference Date") (x) the
cumulative amount of Excess Cash Flow for all fiscal years completed after the Closing Date and prior to the Reference Date minus (y) the portion at such time of such Excess Cash Flow that has
been after the Closing Date and on or prior to the Reference Date (A) applied to (i) the prepayment of Loans in accordance with Section 5.2(a)(ii), (ii) the payment and or
distribution of dividends by the US Borrower to Holdings to pay cash interest of the New Senior Notes in accordance with Section 10.6(f) or (iii) the redemption, repurchase or retirement
of the New Senior Notes or the PIK Notes in accordance with this Section 10.6(g) or (B) utilized by the US Borrower or any Restricted Subsidiary (i) to make any
investments (including loans) pursuant to Section 10.5(j) or Section 10.5(m) after the Closing Date and on or prior to the Reference Date, (ii) to make Capital Expenditures after
the Closing Date and on or prior to the Reference Date pursuant to Section 10.11(b) or (iii) in connection with any prepayment, repurchase or redemption of the Subordinated Notes
pursuant to Section 10.7(a) after the Closing Date and on or prior to the Reference Date. 

        "Available Commitment" shall mean an amount equal to the excess, if any, of (a) the Dollar Equivalent of the amount of the Total
Revolving Credit Commitment over (b) the sum of (i) the aggregate principal amount of all Revolving Credit Loans (but not Swingline Loans) then outstanding and (ii) the aggregate
Letter of Credit Outstanding at such time. 

        "Bankruptcy Code" shall have the meaning provided in Section 11.5. 

        "Board" shall mean the Board of Governors of the Federal Reserve System of the United States (or any successor). 

        "Borrowing" shall mean and include (a) the incurrence of Swingline Loans from the Swingline Lender on a given date, (b) the
incurrence of one Type of Term Loan on the Closing Date (or resulting from conversions on a given date after the Closing Date) having, in the case of Eurodollar Term Loans, the same Interest Period
(provided that ABR Loans incurred pursuant to Section 2.10(b) shall be considered part of any related Borrowing of Eurodollar Term Loans) and
(c) the incurrence of one Type of Revolving Credit Loan on a given date (or resulting from conversions on a given date) having, in the case of Eurodollar Revolving Credit Loans, the same
Interest Period (provided that ABR Loans incurred pursuant to Section 2.10(b) shall be considered part of any related Borrowing of Eurodollar
Revolving Credit Loans). 

5

 

        "Business Day" shall mean (a) for all purposes other than as covered by clause (b) below, any day excluding Saturday, Sunday
and any day that shall be in The City of New York or London a legal holiday or a day on which banking institutions are authorized by law or other governmental actions to close and (b) with
respect to all notices and determinations in connection with, and payments of principal and interest on, Eurodollar Loans denominated in Euro, any day that is a Business Day described in
clause (a) and which is also a day on which the TARGET payment system is open for the settlement of payment in Euro. 

        "Calculation Date" means (a) the Closing Date, (b) each date on which a Borrowing of Foreign Currency Revolving Credit Loans
is made, (c) each date on which a Foreign Currency Letter of Credit is issued, (d) the last Business Day of each calendar month, (e) if at any time the Aggregate Revolving Credit
Outstandings exceed 75% of the Total Revolving Credit Commitment, the last Business Day of each week and (f) if a Default or an Event of Default shall have occurred and be continuing, such
additional dates as the Administrative Agent or the Required Lenders shall specify. 

        "CAM Dollar Lender" shall mean any Lender that has made or holds no Tranche A Term Loans or Tranche B-1 Term Loans and has no
Revolving Credit Commitment. 

        "Canadian Guarantee" shall mean the Canadian Guarantee Agreement, made by each of the Canadian Guarantors in favor of the Administrative
Agent for the benefit of the Lenders to the UK Borrower, substantially in the form of Exhibit A-1, as the same may be amended, supplemented or otherwise modified from time to time. 

        "Canadian Guarantors" shall mean (a) each Subsidiary of the US Borrower (other than an Unrestricted Subsidiary) on the Closing Date
that is incorporated under the laws of Canada or any province or territory thereof and is a party to the Canadian Guarantee and (b) each Subsidiary of the US Borrower that is incorporated under
the laws of Canada or any province or territory thereof and that becomes a party to the Canadian Guarantee after the Closing Date pursuant to Section 9.11. 

        "Canadian Pledge Agreements" shall mean (a) the Canadian Pledge Agreement, entered into by the US Borrower and the Administrative
Agent for the benefit of the Lenders to the UK Borrower and (b) the Canadian Pledge Agreement entered into by the US Borrower and the Administrative Agent for the benefit of the Lenders to the
US Borrower in each case, substantially in the form of Exhibit A-2(a) or (b), as applicable, as the same may be amended, supplemented or otherwise modified from time to time. 

        "Canadian Security Agreement" shall mean the Canadian Security Agreement entered into by the Canadian Guarantors, certain other Restricted
Subsidiaries and the Administrative Agent for the benefit of the Lenders to the UK Borrower, substantially in the form of Exhibit A-3, as the same may be amended, supplemented or
otherwise modified from time to time. 

        "CAM" shall mean the mechanism for the allocation and exchange of interests in the Credit Facilities and collections thereunder
established under Section 13. 

        "CAM Exchange" shall mean the exchange of the Lender's interests provided for in Section 13.1. 

        "CAM Exchange Date" shall mean the date on which (a) any event referred to in Section 11.5 shall occur in respect of any of
the Parent Companies, Holdings, the US Borrower, the UK Borrower or any
Specified Subsidiary or (b) an acceleration of the maturity of the Loans pursuant to Section 11 shall occur. 

        "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 Exchange 

6

 

Rates
prevailing on the CAM Exchange Date) of the Specified Obligations owed to such Lender and such Lender's participation in the aggregate Letter of Credit Outstanding immediately prior to the CAM
Exchange Date and (b) the denominator shall be the aggregate Dollar Equivalent (as so determined) of the Specified Obligations owed to all the Lenders and the aggregate Letter of Credit
Outstanding immediately prior to such CAM Exchange Date. For purposes of computing each Lender's CAM Percentage, all Specified Obligations and Letter of Credit Exposures which are denominated in
Foreign Currencies shall be translated into Dollars at the Exchange Rate in effect on the CAM Exchange Date. 

        "Capital Expenditures" shall mean, for any period, the aggregate of all expenditures (whether paid in cash or accrued as liabilities and
including in all events all amounts expended or capitalized under Capital Leases, but excluding any amount representing capitalized interest) by the US Borrower and the Restricted Subsidiaries during
such period that, in conformity with GAAP, are or are required to be included as additions during such period to property, plant or equipment reflected in the consolidated balance sheet of the US
Borrower and its Subsidiaries, provided that the term "Capital Expenditures" shall not include (a) expenditures made in connection with the
replacement, substitution or restoration of assets (i) to the extent financed from insurance proceeds paid on account of the loss of or damage to the assets being replaced or restored or
(ii) with awards of compensation arising from the taking by eminent domain or condemnation of the assets being replaced, (b) the purchase price of equipment that is purchased
simultaneously with the trade-in of existing equipment to the extent that the gross amount of such purchase price is reduced by the credit granted by the seller of such equipment for the
equipment being traded in at such time, (c) the purchase of plant, property or equipment made within one year of the sale of any asset to the extent purchased with the proceeds of such sale or
(d) expenditures that constitute any part of Consolidated Lease Expense. 

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

        "Capitalized Lease Obligations" shall mean, as applied to any Person, all obligations under Capital Leases of such Person or any of its
Subsidiaries, in each case taken at the amount thereof accounted for as liabilities in accordance with GAAP. 

        "Change of Control" shall mean and be deemed to have occurred if (a) (i) KKR, its Affiliates and the Management Group shall at any
time not own, in the aggregate, directly or indirectly, beneficially and of record, at least 35% of the outstanding Voting Stock of Parent (other than as the result of one or more widely distributed
offerings of Parent Common Stock, in each case whether by Parent or by KKR, its Affiliates or the Management Group) and/or (ii) any person, entity or "group" (within the meaning of
Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended) shall at any time have acquired direct or indirect beneficial ownership of a percentage of the outstanding Voting
Stock of Parent that exceeds the percentage of such Voting Stock then beneficially owned, in the aggregate, by KKR, its Affiliates and the Management Group, unless, in the case of either
clause (i) or (ii) above, KKR, its Affiliates and the Management Group have, at such time, the right or the ability by voting power, contract or otherwise to elect or designate for
election a majority of the Board of Directors of Parent; and/or (b) at any time Continuing Directors shall not constitute a majority of the Board of Directors of Parent; and/or (c) any
Person, other than any of the Parent Companies and any person who receives capital stock in PIK Holdco in connection with an investment made pursuant to Section 10.5(g), acquires ownership,
directly or indirectly, beneficially or of record, of any equity interest (other than Qualified Preferred Stock) of any nature in PIK Holdco; and/or (d) any Person, other than any of the Parent
Companies, acquires ownership, directly or indirectly, beneficially or of record, of any equity interest of any nature in Holdings; and/or (e) any Person, 

7

 

other
than Holdings (directly) or any of the Parent Companies (indirectly), acquires ownership, directly or indirectly, beneficially or of record, of any equity interest of any nature in the US
Borrower; and/or (f) a Change of Control (as defined in any of the Subordinated Note Indenture, the New Senior Notes Indenture or any PIK Notes Documents) shall have occurred. 

        "Class", when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are
Revolving Credit Loans, Tranche A Term Loans, Tranche B Term Loans, Tranche B-1 Term Loans, or Swingline Loans and, when used in reference to any Commitment, refers to whether such
Commitment is a Revolving Credit Commitment, Tranche A Term Loan Commitment, Tranche B Term Loan Commitment or Tranche B-1 Term Loan Commitment. 

        "Closing Date" shall mean the date of the initial Borrowing hereunder. 

        "Code" shall mean the Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated and rulings issued
thereunder. Section references to the Code are to the Code, as in effect at the date of this Agreement, and any subsequent provisions of the Code, amendatory thereof, supplemental thereto or
substituted therefor. 

        "Collateral" shall have the meaning provided in the Pledge Agreement, the Security Agreement, any Foreign Security Document or any
Mortgage, as applicable. 

        "Commitment Fee Rate" shall mean, with respect to the Available Commitment on any day, the rate per annum set forth below opposite the
Status in effect on such day: 

	Status
	 	Commitment Fee Rate
	 
	Level I Status	 	0.500	%
	Level II Status	 	0.500	%
	Level III Status	 	0.500	%
	Level IV Status	 	0.375	%

        Notwithstanding
the foregoing, the term "Commitment Fee Rate" shall mean 0.500%, during the period from and including the Closing Date to but excluding the Initial Financial Statement
Delivery Date. 

        "Commitments" shall mean, with respect to each Lender, such Lender's Term Loan Commitment and Revolving Credit Commitment. 

        "Confidential Information" shall have the meaning provided in Section 14.16. 

        "Confidential Information Memorandum" shall mean the Confidential Information Memorandum of the US Borrower dated June, 2003, delivered to
the Lenders in connection with this Agreement. 

        "Consolidated Earnings" shall mean, for any period, "income (loss) before the deduction of income taxes" of the US Borrower and the
Restricted Subsidiaries, excluding extraordinary items, for such period, determined in a manner consistent with the manner in which such amount was determined in accordance with the audited financial
statements referred to in Section 9.1(a). 

        "Consolidated EBITDA" shall mean, for any period, the sum, without duplication, of the amounts for such period of (a) Consolidated
Earnings, (b) Consolidated Interest Expense, (c) depreciation expense, (d) amortization expense, including amortization of deferred financing fees, (e) extraordinary losses
and nonrecurring charges, (f) non-cash charges, (g) losses on asset sales, (h) restructuring charges or reserves, (i) in the case of any period that includes a
period ending during the fiscal year ending December 31, 2003, Transaction Expenses, to the extent deducted in determining Consolidated Earnings, (j) any expenses or charges incurred in
connection 

8

 

with
any issuance of debt or equity securities, (k) any fees and expenses related to Permitted Acquisitions, (1) any deduction for minority interest expense and (m) items arising
in connection with litigation related to the timber business of the US Borrower and its Subsidiaries (not exceeding $4,000,000 in the aggregate for any such period and $9,000,000 in the aggregate
during the term of this Agreement), less the sum of the amounts for such period of (n) extraordinary gains and non-recurring gains,
(o) non-cash gains and (p) gains on asset sales, all as determined on a consolidated basis for the US Borrower and the Restricted Subsidiaries in accordance with GAAP,  provided that
(i) except as provided in clause (iv) below, there shall be excluded from Consolidated Earnings for any period the income
from continuing operations before income taxes and extraordinary items of all Unrestricted Subsidiaries for such period to the extent otherwise included in Consolidated Earnings, except to the extent
actually received in cash by the US Borrower or its Restricted Subsidiaries during such period through dividends or other distributions, (ii) there shall be excluded from Consolidated Earnings
for any period the income from continuing operations before income taxes and extraordinary items of each Foreign Joint Venture for such period corresponding to the percentage of capital stock or other
equity interests in such Foreign Joint Venture not owned by the US Borrower or its Restricted Subsidiaries (other than Foreign Joint Ventures), (iii) there shall be excluded in determining
Consolidated EBITDA nonoperating currency transaction gains and losses and (iv) (x) there shall be included in determining Consolidated EBITDA for any period (A) the Acquired
EBITDA of any Person, property, business or asset (other than an Unrestricted Subsidiary) acquired to the extent not subsequently sold, transferred or otherwise disposed of (but not including the
Acquired EBITDA of any related Person, property, business or assets to the extent not so acquired) by the US Borrower or any Restricted Subsidiary during such period (each such Person, property,
business or asset acquired and not subsequently so disposed of, an "Acquired Entity or Business"), and the Acquired EBITDA of any Unrestricted
Subsidiary that is converted into a Restricted Subsidiary during such period (each, a "Converted Restricted Subsidiary"), in each case based on the
actual Acquired EBITDA of such Acquired Entity or Business or Converted Restricted Subsidiary for such period (including the portion thereof occurring prior to such acquisition or conversion) and
(B) for the purposes of the definition of the term "Permitted Acquisition" and Sections 10.3, 10.9 and 10.10, an adjustment in respect of each Acquired Entity or Business equal to the amount of
the Pro Forma Adjustment with respect to such Acquired Entity or Business for such period (including the portion thereof occurring prior to such acquisition or conversion) as specified in the Pro
Forma Adjustment Certificate delivered to the Lenders and the Administrative Agent and (y) for purposes of determining the Consolidated Total Debt to Consolidated EBITDA Ratio only, there shall
be excluded in determining Consolidated EBITDA for any period the Acquired EBITDA of any Person, property, business or asset (other than an Unrestricted Subsidiary) sold, transferred or otherwise
disposed of by the US Borrower or any Restricted Subsidiary during such period (each such Person, property, business or asset so sold or disposed of, a "Sold Entity or
Business"), and the Acquired EBITDA of any Restricted Subsidiary that is converted into an Unrestricted Subsidiary during such period (each, a
"Converted Unrestricted Subsidiary"), in each case based on the actual Acquired EBITDA of such Sold Entity or Business or Converted Unrestricted
Subsidiary for such period (including the portion thereof occurring prior to such sale, transfer, disposition or conversion). 

        "Consolidated EBITDA to Consolidated Interest Expense Ratio" shall mean, as of any date of determination, the ratio of
(a) Consolidated EBITDA for the relevant Test Period to (b) Consolidated Interest Expense for such Test Period. 

        "Consolidated Interest Expense" shall mean, for any period, the sum of (x) cash interest expense (including that attributable to
Capital Leases in accordance with GAAP), net of cash interest income, of the US Borrower and the Restricted Subsidiaries on a consolidated basis with respect to all outstanding Indebtedness of
Holdings, the US Borrower and the Restricted 

9

 

Subsidiaries,
including all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers' acceptance financing and net costs under Hedge Agreements (other than
currency swap agreements, currency future or option contracts and other similar agreements), but excluding, however, amortization of deferred financing costs and any other amounts of
non-cash interest, all as calculated on a consolidated basis in accordance with GAAP plus (y) the aggregate amount of all cash
Dividends paid by the US Borrower to Holdings for such period pursuant to Section 10.6 to the extent such Dividends were used, either directly or indirectly, to make cash interest payments on
any outstanding New Senior Notes, provided that (a) except as provided in clause (b) below, there shall be excluded from Consolidated
Interest Expense for any period the cash interest expense (or income) of all Unrestricted Subsidiaries for such period to the extent otherwise included in Consolidated Interest Expense and
(b) for purposes of the definition of the term "Permitted Acquisition" and Sections 10.3, 10.9 and 10.10, there shall be included in determining Consolidated Interest Expense for any period the
cash interest expense (or income) of any Acquired Entity or Business acquired during such period and of any Converted Restricted Subsidiary converted during such period, in each case based on the cash
interest expense (or income) of such Acquired Entity or Business or Converted Restricted Subsidiary for such period (including the portion thereof occurring prior to such acquisition or conversion)
assuming any Indebtedness incurred or repaid in connection with any such acquisition or conversion had been incurred or prepaid on the first day of such period. 

        "Consolidated Lease Expense" shall mean, for any period, all rental expenses of Holdings, the US Borrower and the Restricted Subsidiaries
during such period under operating leases for real or personal property (including in connection with Permitted Sale Leasebacks), excluding real estate taxes, insurance costs and common area
maintenance charges and net of sublease income, other than (a) obligations under vehicle leases entered into in the ordinary course of business, (b) all such rental expenses associated
with assets acquired pursuant to a Permitted Acquisition to the extent that such rental expenses relate to operating leases in effect at the time of (and immediately prior to) such acquisition and
(c) Capitalized Lease Obligations, all as determined on a consolidated basis in accordance with GAAP, provided that there shall be excluded from
Consolidated Lease Expense for any period the rental expenses of all Unrestricted Subsidiaries for such period to the extent otherwise included in Consolidated Lease Expense. 

        "Consolidated Net Income" shall mean, for any period, the consolidated net income (or loss) after the deduction of income taxes of the US
Borrower and the Restricted Subsidiaries, determined on a consolidated basis in accordance with GAAP. 

        "Consolidated Net Sales" shall mean, for any fiscal year or any Test Period, as the case may be, "net sales" of the US Borrower and the
Restricted Subsidiaries as set forth in the Section 9.1 Financials with respect to such Test Period or fiscal year, as applicable. 

        "Consolidated Total Debt" shall mean, as of any date of determination, (a) the sum of (i) all indebtedness of the US
Borrower and the Restricted Subsidiaries for borrowed money outstanding on such date and (ii) all Capitalized Lease Obligations of the US Borrower and the Restricted Subsidiaries outstanding on
such date, all calculated on a consolidated basis in accordance with GAAP minus (b) the aggregate amount of cash included in the cash accounts
listed on the consolidated balance sheet of the US Borrower and the Restricted Subsidiaries as at such date up to a maximum amount of $50,000,000 to the extent the use thereof for application to
payment of Indebtedness is not prohibited by law or any contract to which the US Borrower or any of the Restricted Subsidiaries is a party. 

        "Consolidated Total Debt to Consolidated EBITDA Ratio" shall mean, as of any date of determination, the ratio of (a) Consolidated
Total Debt as of the last day of the relevant Test Period to (b) Consolidated EBITDA for such Test Period. 

10

  

        "Consolidated Working Capital" shall mean, at any date, the excess of (a) the sum of all amounts (other than cash, cash equivalents
and bank overdrafts) that would, in conformity with GAAP, be set forth opposite the caption "total current assets" (or any like caption) on a consolidated balance sheet of Holdings, the US Borrower
and the Restricted Subsidiaries at such date over (b) the sum of all amounts that would, in conformity with GAAP, be set forth opposite the caption "total current liabilities" (or any like
caption) on a consolidated balance sheet of Holdings, the US Borrower and the Restricted Subsidiaries on such date, but excluding (i) the current portion of any Funded Debt, (ii) without
duplication of clause (i) above, all Indebtedness consisting of Loans and Letter of Credit Exposure to the extent otherwise included therein and (iii) the current portion of deferred
income taxes. 

        "Continuing Director" shall mean, at any date, an individual (a) who is a member of the Board of Directors of Parent on the date
hereof, (b) who, as at such date, has been a member of such Board of Directors for at least the 12 preceding months, (c) who has been nominated to be a member of such Board of Directors,
directly or indirectly, by KKR or one of its Affiliates or Persons nominated by KKR or one of its Affiliates or (d) who has been nominated to be a member of such Board of Directors by a
majority of the other Continuing Directors then in office. 

        "Converted Restricted Subsidiary" shall have the meaning provided in the definition of the term "Consolidated EBITDA". 

        "Converted Unrestricted Subsidiary" shall have the meaning provided in the definition of the term "Consolidated EBITDA". 

        "Credit Documents" shall mean this Agreement, the Security Documents, each Letter of Credit and any promissory notes issued by the US
Borrower or the UK Borrower hereunder. 

        "Credit Event" shall mean and include the making (but not the conversion or continuation) of a Loan and the issuance of a Letter of
Credit. 

        "Credit Facility" shall mean a category of Commitments and extensions of credit thereunder. 

        "Credit Party" shall mean each of the US Borrower, the UK Borrower, the Guarantors, the Foreign Subsidiary Guarantors and each other
Subsidiary of the US Borrower that is a party to a Credit Document. 

        "Cumulative Consolidated Net Income Available to Stockholders" shall mean, as of any date of determination, Consolidated Net Income less
cash dividends paid by Holdings with respect to its capital stock for the period (taken as one accounting period) commencing on the Closing Date and ending on the last day of the most recent fiscal
quarter for which Section 9.1 Financials have been delivered to the Lenders under Section 9.1. 

        "Debt Incurrence Prepayment Event" shall mean any issuance or incurrence by the US Borrower or any of the Restricted Subsidiaries of any
Indebtedness (including any issuance by the US Borrower of Permitted Additional Subordinated Notes but excluding any other Indebtedness permitted to be issued or incurred under Section 10.1A(a)
to (n)). 

        "Default" shall mean any event, act or condition that with notice or lapse of time, or both, would constitute an Event of Default. 

        "Defaulting Lender" shall mean any Lender with respect to which a Lender Default is in effect. 

        "Dividends" shall have the meaning provided in Section 10.6. 

11

 

        "Documentation Agents" shall mean Goldman Sachs Credit Partners L.P., together with its affiliates, and General Electric Capital
Corporation, together with its affiliates, as the co-documentation agents for the Lenders under this Agreement and the other Credit Documents. 

        "Dollar Borrowing" shall mean a Borrowing denominated in Dollars. 

        "Dollar Equivalent" shall mean, on any date of determination, (a) with respect to any amount denominated in Dollars, such amount,
and (b) with respect to any amount denominated in any Foreign Currency, the equivalent in Dollars of such amount, determined by the Administrative Agent pursuant
to Section 1.2(b) using the applicable Exchange Rate with respect to such Foreign Currency at the time in effect under the provisions of such Section 1.2. 

        "Dollar Letter of Credit" shall mean a Letter of Credit denominated in Dollars and issued pursuant to Section 3.1. 

        "Dollar Revolving Credit Loan" shall mean a Revolving Credit Loan denominated in Dollars and made pursuant to Section 2.1(b). 

        "Dollars" and "$" shall mean dollars in lawful currency of the United States of America. 

        "Domestic Subsidiary" shall mean each Subsidiary of the US Borrower that is organized under the laws of the United States, any state or
territory thereof, or the District of Columbia. 

        "Drawing" shall have the meaning provided in Section 3.4(b). 

        "Eligible Lender" shall mean, at any time, a Person who, on any date on which interest is payable under this Agreement, is a Person which
is (a) beneficially entitled to the interest payable to it under this Agreement and (b)(i) a UK Lender or (ii) a Treaty Lender. 

        "EMU Legislation" shall mean the legislative measures of the European Union for the introduction of, changeover to or operation of the
Euro in one or more member states. 

        "Environmental Claims" shall mean any and all administrative, regulatory or judicial actions, suits, demands, demand letters, claims,
liens, notices of noncompliance or violation, investigations (other than internal reports prepared by the US Borrower or any of the Subsidiaries (a) in the ordinary course of such Person's
business or (b) as required in connection with a financing transaction or an acquisition or disposition of real estate) or proceedings relating in any way to any Environmental Law or any permit
issued, or any approval given, under any such Environmental Law (hereinafter, "Claims"), including (i) any and all Claims by governmental or regulatory authorities for enforcement, cleanup,
removal, response, remedial or other actions or damages pursuant to any applicable Environmental Law and (ii) any and all Claims by any third party seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief resulting from Hazardous Materials or arising from alleged injury or threat of injury to health, safety or the environment. 

        "Environmental Law" shall mean any applicable Federal, state, foreign or local statute, law, rule, regulation, ordinance, code and rule of
common law now or hereafter in effect and in each case as amended, and any binding judicial or administrative interpretation thereof, including any binding judicial or administrative order, consent
decree or judgment, relating to the environment, human health or safety or Hazardous Materials. 

        "Equity Proceeds" shall have the meaning provided in the preamble to this Agreement. 

        "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time. Section references to ERISA are to
ERISA as in effect at the date of this Agreement and any subsequent provisions of ERISA amendatory thereof, supplemental thereto or substituted therefor. 

12

 

        "ERISA Affiliate" shall mean each person (as defined in Section 3(9) of ERISA) that together with the US Borrower or a Subsidiary
would be deemed to be a "single employer" within the meaning of Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the
Code, is treated as a single employer under Section 414 of the Code. 

        "Euro" or "€" shall mean the single currency of the European Union as
constituted by the Treaty on European Union and as referred to in the EMU Legislation. 

        "Eurodollar Loan" shall mean any Eurodollar Term Loan or Eurodollar Revolving Credit Loan. 

        "Eurodollar Rate" shall mean, in the case of any Eurodollar Term Loan or Eurodollar Revolving Credit Loan (other than the Tranche A Term
Loans, the Tranche B1 Term Loans or any Foreign Currency Revolving Credit Loan), with respect to each day during each Interest Period pertaining to such Eurodollar Loan, (a) the rate of
interest determined on the basis of the rate for deposits in Dollars for a period equal to such Interest Period commencing on the first day of such Interest Period appearing on Page 3750 of the
Telerate screen as of 11:00 a.m. (London time) two Business Days prior to the beginning of such Interest Period multiplied by (b) the Statutory Reserve Rate. With respect to Eurodollar
Borrowings denominated in a Foreign Currency, the Eurodollar Rate for any Interest Period shall be determined by the Administrative Agent at approximately 11:00 a.m. (London time) on the
Quotation Day for such Interest Period by reference to the British Bankers' Association Interest Settlement Rates for deposits in the currency of such Borrowing (as reflected on the applicable Page of
the Telerate Service) for a period equal to such Interest Period. In the event that any such rate does not appear on the applicable Page of the Telerate Service (or otherwise on such service), the
"Eurodollar Rate" for the purposes of this paragraph shall be determined by reference to such other publicly available service for displaying eurodollar rates as may be agreed upon by the
Administrative
Agent and the US Borrower or, in the absence of such agreement, the "Eurodollar Rate" for the purposes of this paragraph shall instead be the rate per annum notified to the Administrative Agent by the
Reference Lender as the rate at which the Reference Lender is offered Dollar or Foreign Currency deposits, as applicable, at or about 11:00 a.m. (London time) two Business Days prior to the
beginning of such Interest Period in the interbank eurodollar market where the eurodollar and foreign currency and exchange operations in respect of its Eurodollar Loans are then being conducted for
delivery on the first day of such Interest Period for the number of days comprised therein and in an amount comparable to the amount of its Eurodollar Term Loan or Eurodollar Revolving Credit Loan, as
the case may be, to be outstanding during such Interest Period. 

        "Eurodollar Revolving Credit Loan" shall mean any Revolving Credit Loan bearing interest at a rate determined by reference to the
Eurodollar Rate. 

        "Eurodollar Term Loan" shall mean any Term Loan bearing interest at a rate determined by reference to the Eurodollar Rate. 

        "Event of Default" shall have the meaning provided in Section 11. 

        "Excess Cash Flow" shall mean, for any period, an amount equal to the excess of (a) the sum, without duplication, of
(i) Consolidated Net Income for such period, (ii) an amount equal to the amount of all non-cash charges to the extent deducted in arriving at such Consolidated Net Income,
(iii) decreases in Consolidated Working Capital for such period and (iv) an amount equal to the aggregate net non-cash loss on the sale, lease, transfer or other disposition
of assets by the US Borrower and the Restricted Subsidiaries during such period (other than sales in the ordinary course of business) to the extent deducted in arriving at such Consolidated Net Income  over (b) the sum, without duplication, of (i) an amount equal to the amount of all non-cash credits included in arriving at
such Consolidated Net Income, (ii) the aggregate amount actually paid by 

13

 

the
US Borrower and the Restricted Subsidiaries in cash during such period on account of Capital Expenditures (excluding the principal amount of Indebtedness incurred in connection with such Capital
Expenditures, whether incurred in such period or in a subsequent period), (iii) the aggregate amount of all prepayments of Revolving Credit Loans and Swingline Loans made during such period to
the extent accompanying reductions of the Total Revolving Credit Commitments, (iv) the aggregate amount of all principal payments of Indebtedness of the US Borrower or the Restricted
Subsidiaries (including any Term Loans and the principal component of payments in respect of Capitalized Lease Obligations but excluding Revolving Credit Loans, Swingline Loans and voluntary
prepayments of Term Loans pursuant to Section 5.1) made during such period (other than in respect of any revolving credit facility to the extent there is not an equivalent permanent reduction
in commitments thereunder), (v) an amount equal to the aggregate net non-cash gain on the sale, lease, transfer or other disposition of assets by the US Borrower and the Restricted
Subsidiaries during such period (other than sales in the ordinary course of business) to the extent included in arriving at such Consolidated Net Income, (vi) increases in Consolidated Working
Capital for such period, (vii) payments by the US Borrower and the Restricted Subsidiaries during such period in respect of long-term liabilities of the US Borrower and the
Restricted Subsidiaries other than Indebtedness, (viii) the amount of investments made during such period pursuant to Section 10.5 to the extent that such investments were financed with
internally generated cash flow of the US Borrower and the Restricted Subsidiaries, (ix) the amount of dividends paid during such period pursuant to clause (b), (c), (d) or
(e) of the proviso to Section 10.6 to the extent such dividends were paid with the proceeds of any amount referred to in paragraph (a) of this definition, (x) the aggregate
amount of expenditures actually made by the US Borrower and the Restricted Subsidiaries in cash during such period (including expenditures for the payment of financing fees) to the extent that such
expenditures are not expensed during such period and (xi) the aggregate amount of any premium, make-whole or penalty payments actually paid in cash by the US Borrower and the
Restricted Subsidiaries during such period that are required to be made in connection with any prepayment of Indebtedness and that are accounted for as extraordinary items. 

        "Exchange Rate" shall mean on any day, with respect to any Foreign Currency, the rate at which such Foreign Currency may be exchanged into
Dollars, as set forth at approximately 11:00 a.m. (London time) on such day on the Reuters World Currency Page for such Foreign Currency. In the event that such rate does not appear on any
Reuters World Currency Page, the Exchange Rate shall be determined by reference to such other publicly available service for displaying exchange rates as may be agreed upon by the Administrative Agent
and the US Borrower, or, in the absence of such agreement, such Exchange Rate shall instead be the arithmetic average of the spot rates of exchange of the Administrative Agent in the market where its
foreign currency exchange operations in respect of such Foreign Currency are then being conducted, at or about 10:00 a.m. (Local Time) on such date for the purchase of Dollars for delivery two
Business Days later, provided that if at the time of any such determination, for any reason, no such spot rate is being quoted, the Administrative
Agent, after
consultation with the US Borrower, may use any reasonable method it deems appropriate to determine such rate, and such determination shall be conclusive absent manifest error. 

        "Existing Credit Agreement" shall mean the Credit Agreement, dated as of November 20, 2000, as amended, among the US Borrower
(formerly known as K-L Sub 3, Inc.), the UK Borrower (formerly known as Citrusbay Limited), Holdings (formerly known as K-L Sub 2, Inc.), PIK Holdco (formerly
known as K-L Sub 1, Inc.) and Parent (formerly known as K-L Holdings, Inc.), the lenders from time to time party thereto, JPMorgan Chase Bank (formerly known as
The Chase Manhattan Bank), as Administrative Agent, Merrill Lynch & Co., as Syndication Agent, and Goldman Sachs Credit Partners L.P., as Documentation Agent. 

14

 

        "Existing Indenture" shall mean the Exchange Note Indenture, dated as of November 20, 2001, among the US Borrower, PIK Holdco and
the subsidiary guarantors party thereto and The Bank of New York, as trustee. 

        "Existing German Pledge Agreement" shall mean the Pledge Agreement with respect to the pledge of general partner's interest in Brockhues
GmbH & Co. KG by Rockwood Pigmente Holding GmbH and Silo Pigmente GmbH in favor of JPMorgan Chase Bank dated April 17, 2001 (deed No. 30, deed No. 32, and deed
No. 35 for the year 2001 of the notary public Dr. Thomas Gelzer in Basel, Switzerland) in the form attached hereto as Exhibit C-6. 

        "Existing Letters of Credit" shall have the meaning provided in the preamble to this Agreement. 

        "Federal Funds Effective Rate" shall mean, for any day, the weighted average of the per annum rates on overnight federal funds
transactions with members of the Federal Reserve System arranged by federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is
not so published for any day that is a Business Day, the average 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. 

        "Fees" shall mean all amounts payable pursuant to, or referred to in, Section 4.1. 

        "Final Date" shall mean the date on which the Revolving Credit Commitments shall have terminated, no Revolving Credit Loans shall be
outstanding and the Letter of Credit Outstandings shall have been reduced to zero. 

        "Foreign Currencies" shall mean Euro and Sterling. 

        "Foreign Currency Borrowing" shall mean a Borrowing comprised of Tranche A Term Loans, Tranche B-1 Term Loans or Foreign
Currency Revolving Loans. 

        "Foreign Currency Letter of Credit" shall mean a Letter of Credit denominated in a Foreign Currency and issued pursuant to
Section 3.1. 

        "Foreign Currency Revolving Credit Loan" shall mean a Revolving Loan denominated in a Foreign Currency and made pursuant to
Section 2.1(b). 

        "Foreign Joint Venture" shall mean any Restricted Foreign Subsidiary in which the US Borrower and its Restricted Subsidiaries own,
collectively, less than 100% of the equity interests and designated as such in a written notice to the Administrative Agent by the US Borrower, provided  that in the event a Restricted Subsidiary not
previously designated by the US Borrower as a Foreign Joint Venture is subsequently redesignated as a Foreign Joint Venture,
(x) such re-designation shall be deemed to be an investment on the date of such re-designation in a Foreign Joint Venture in an amount equal to the product of
(i) the net worth of such re-designated Restricted Subsidiary immediately prior to such re-designation (such net worth to be calculated without regard to any guarantee
provided by such re-designated Restricted Subsidiary) and (ii) the percentage of capital stock or other equity interests in such Foreign Joint Venture owned by the US Borrower or
its Restricted Subsidiaries (other than Foreign Joint Ventures) and (y) no Default or Event of Default would result from such re-designation. 

        "Foreign Security Documents" shall mean, collectively, (a) the UK Guarantee, (b) the UK Pledge Agreements, (c) the UK
Debenture, (d) the German Guarantee, (e) the German Pledge Agreement, (f) the German Pledge Agreement (Brockhues), (g) the Existing German Pledge Agreement, (h) the
German Assignment of Claims, (i) the German Conditional Security Agreements, (j) the German Negative Pledge Agreement, (k) the German Abstract Acknowledgments of Indebtedness,
(1) the Italian Guarantee, (m) the Italian Share Pledge 

15

 

Agreements,
(n) the Italian Trademark Pledge Agreement, (o) the Canadian Guarantee, (p) the Canadian Pledge Agreements, (q) the Canadian Security Agreement, (r) the
French Pledge Agreements, (s) the Singapore Guarantee, (t) the Singapore Pledge Agreements, (u) the Singapore Security Agreement, (v) the Taiwan Pledge Agreements,
(w) any Mortgage over Mortgaged Property of a Foreign Subsidiary and (x) any security document entered into by a Restricted Foreign Subsidiary pursuant to Section 9.11, 9.12 or
9.18. 

        "Foreign Subsidiary" shall mean each Subsidiary of the US Borrower that is not a Domestic Subsidiary, including the UK Borrower. 

        "Foreign Subsidiary Guarantees" shall mean (a) the UK Guarantee, (b) the German Guarantee, (c) the Italian Guarantee,
(d) the Canadian Guarantee, (e) the Singapore Guarantee and (f) any guarantee agreement entered into by a Restricted Foreign Subsidiary pursuant to Section 9.11, 9.12 or
9.18. 

        "Foreign Subsidiary Guarantors" shall mean the UK Guarantors, the German Guarantors, the Italian Guarantors, the Canadian Guarantors, the
Singapore Guarantors and any other Foreign Subsidiary that becomes a Foreign Subsidiary Guarantor pursuant to Section 9.11. 

        "French Pledge Agreements" shall mean (a) the French Pledge Agreement, entered into by the US Borrower and the Administrative Agent
for the benefit of the Lenders to the UK Borrower and (b) the French Pledge Agreement entered into by the US Borrower and the Administrative Agent for the benefit of the Lenders to the US
Borrower, substantially in the form of Exhibit B(a) or (b), as applicable, as the same may be amended, supplemented or otherwise modified from time to time. 

        "Fronting Fee" shall have the meaning provided in Section 4.1(c). 

        "Funded Debt" shall mean all indebtedness of the US Borrower and the Restricted Subsidiaries for borrowed money that matures more than one
year from the date of its creation or matures within one year from such date that is renewable or extendable, at the option of the US Borrower or one of the Restricted Subsidiaries, to a date more
than one year from such date or arises under a revolving credit or similar agreement that obligates the lender or lenders to extend credit during a period of more than one year from such date,
including all amounts of Funded Debt required to be paid or prepaid within one year from the date of its creation and, in the case of the US Borrower, Indebtedness in respect of the Loans. 

        "GAAP" shall mean generally accepted accounting principles in the United States of America as in effect from time to time;  provided, however, that if there occurs after the date hereof any change in GAAP that affects in any
respect the calculation of any covenant contained in Section 10, the Lenders and the US Borrower shall negotiate in good faith amendments to the provisions of this Agreement that relate to the
calculation of such covenant with the intent of having the respective positions of the Lenders and the US Borrower after such change in GAAP conform as nearly as possible to their respective positions
as of the date of this Agreement and, until any such amendments have been agreed upon, the covenants in Section 10 shall be calculated as if no such change in GAAP has occurred. 

        "German Abstract Acknowledgments of Indebtedness" shall mean (x) the agreement dated as of the Closing Date, between the UK
Borrower and the Administrative Agent and (y) the agreement dated as
of the Closing Date, between the US Borrower and the Administrative Agent, in each case substantially in the form of Exhibit C-1 (a) or (b), as applicable, as the same may be
amended, supplemented or otherwise modified from time to time. 

        "German Assignment of Claims" shall mean the agreement dated as of the Closing Date, entered into by the German Guarantors, certain other
Restricted Subsidiaries and the 

16

 

Administrative
Agent for the benefit of the Lenders to the UK Borrower, substantially in the form of Exhibit C-2, as the same may be amended, supplemented or otherwise modified from
time to time. 

        "German Conditional Security Agreements" shall mean the Agreements and all attachments and exhibits thereto, substantially in the form of
Exhibit C-7, as the same may be amended, supplemented or otherwise modified from time to time. 

        "German Guarantee" shall mean the German Guarantee Agreement, made by each of the German Guarantors in favor of the Administrative Agent
for the benefit of the Lenders to the UK Borrower, substantially in the form of Exhibit C-3, as the same may be amended, supplemented or otherwise modified from time to time. 

        "German Guarantors" shall mean each Subsidiary of the US Borrower (other than an Unrestricted Subsidiary) on the Closing Date that is
incorporated under the laws of Germany and is a party to the German Guarantee and (b) each Subsidiary of the US Borrower that is incorporated under the laws of Germany and that becomes a party
to the German Guarantee after the Closing Date pursuant to Section 9.11. 

        "German Negative Pledge Agreement" shall mean the letter dated as of the Closing Date and all attachments and exhibits thereto, from
Rockwood Pigmente Holding GmbH and Silo Pigmente GmbH to the Administrative Agent, substantially in the form of Exhibit C-4, as the same may be amended, supplemented or otherwise
modified from time to time. 

        "German Pledge Agreement" shall mean the German Pledge Agreement, entered into among the US Borrower, Rockwood Specialties GmbH and the
Administrative Agent for the benefit of the Lenders, substantially in the form of Exhibit C-5, as the same may be amended, supplemented or otherwise modified from time to time. 

        "German Pledge Agreement (Brockhues)" shall mean the German Pledge Agreement to be entered into among Silo Pigmente GmbH, Rockwood
Pigmente Holding GmbH and the Administrative Agent for the benefit of the Lenders to the UK Borrower, substantially in the form of Exhibit C-9, as the same may be amended,
supplemented or otherwise modified from time to time. 

        "Governmental Authority" shall mean any nation or government, any state or other political subdivision thereof, and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 

        "Guarantee" shall mean the Guarantee, made by each Guarantor in favor of the Administrative Agent for the benefit of the Secured Parties,
substantially in the form of Exhibit D, as the same may be amended, supplemented or otherwise modified from time to time. 

        "Guarantee and Collateral Exception Amount" shall mean, at any time: (a) $100,000,000 minus  (b) the sum of (i) the aggregate amount of Indebtedness
incurred or assumed prior to such time pursuant to Section 10.1(j) or (k) that is
outstanding at such time and that was used to acquire, or was assumed in connection with the acquisition of, capital stock and/or assets in respect of which guarantees, pledges and security have not
been given pursuant to Sections 9.11 and 9.12, (ii) the lesser of (x) the aggregate Increased Commitment Amount at such time and (y) $50,000,000 and (iii) any Indebtedness
incurred by any Foreign Joint Venture, provided that if such amount is a negative number, the Guarantee and Collateral Exception Amount shall be zero. 

        "Guarantee Obligations" shall mean, as to any Person, any obligation of such Person guaranteeing or intended to guarantee any Indebtedness
of any other Person (the "primary obligor") in any manner, whether directly or indirectly, including any obligation of such Person, whether or not
contingent, (a) to purchase any such Indebtedness or any property constituting 

17

 

direct
or indirect security therefor, (b) to advance or supply funds (i) for the purchase or payment of any such Indebtedness or (ii) to maintain working capital or equity capital
of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (c) to purchase property, securities or services primarily for the purpose of assuring the
owner of any such Indebtedness of the ability of the primary obligor to make payment of such Indebtedness or (d) otherwise to assure or hold harmless the owner of such Indebtedness against loss
in respect thereof; provided, however, that the term "Guarantee Obligations" shall not include
endorsements of instruments for deposit or collection in the ordinary course of business. The amount of any Guarantee Obligation shall be deemed to be an amount equal to the stated or determinable
amount of the Indebtedness in respect of which such Guarantee Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such
Person is required to perform thereunder) as determined by such Person in good faith. 

        "Guarantors" shall mean Holdings and the US Subsidiary Guarantors. 

        "Hazardous Materials" shall mean (a) any petroleum or petroleum products, radioactive materials, friable asbestos, urea
formaldehyde foam insulation, transformers or other equipment that contain dielectric fluid containing regulated levels of polychlorinated biphenyls, and radon gas; (b) any chemicals, materials
or substances defined as or included in the definition of "hazardous substances", "hazardous waste", "hazardous materials", "extremely hazardous waste", "restricted hazardous waste", "toxic
substances", "toxic pollutants", "contaminants", or "pollutants", or words of similar import, under any applicable Environmental Law; and (c) any other chemical, material or substance, which is
prohibited, limited or regulated by any Environmental Law. 

        "Hedge Agreements" shall mean interest rate swap, cap or collar agreements, interest rate future or option contracts, currency swap
agreements, currency future or option contracts, commodity price protection agreements or other commodity price hedging agreements, and other similar agreements entered into by the US Borrower or the
UK Borrower in the ordinary course of business (and not for speculative purposes) in order to protect the US Borrower, the UK Borrower or any of the Restricted Subsidiaries against fluctuations in
interest rates, currency exchange rates or commodity prices. 

        "Holdings" shall have the meaning provided in the preamble to this Agreement. 

        "Increased Commitment Amount" shall have the meaning given to that term in Section 14.1. 

        "Indebtedness" of any Person shall mean (a) all indebtedness of such Person for borrowed money, (b) the deferred purchase
price of assets or services that in accordance with GAAP would be included as liabilities in the balance sheet of such Person, (c) the face amount of all letters of credit issued for the
account of such Person and, without duplication, all drafts drawn thereunder, (d) all Indebtedness of a second Person secured by any Lien on any property owned by such first Person, whether or
not such Indebtedness has been assumed, (e) all Capitalized Lease Obligations of such Person, (f) all obligations of such Person under interest rate swap, cap or collar agreements,
interest rate future or option contracts, currency swap agreements, currency future or option contracts, commodity price protection agreements or other commodity price hedging agreements and other
similar agreements and (g) without duplication, all Guarantee Obligations of such Person, provided that Indebtedness shall not include trade
payables and accrued expenses, in each case payable directly or through a bank clearing arrangement and arising in the ordinary course of business. 

        "Initial Financial Statement Delivery Date" shall mean the date on which Section 9.1 Financials are delivered to the Lenders under
Section 9.1 for the first full fiscal quarter following the date that is six months after the Closing Date. 

18

 

        "Interest Period" shall mean, with respect to any Term Loan or Revolving Credit Loan, the interest period applicable thereto, as
determined pursuant to Section 2.9. 

        "Investor Equity Contribution" shall have the meaning provided in the preamble to this Agreement. 

        "Italian Guarantee" shall mean the Italian Guarantee Agreement, made by each of the Italian Guarantors in favor of the Administrative
Agent for the benefit of the Lenders to the UK Borrower, substantially in the form of Exhibit E-1, as the same may be amended, supplemented or otherwise modified from time to time. 

        "Italian Guarantors" shall mean (a) each Subsidiary of the US Borrower (other than an Unrestricted Subsidiary) on the Closing Date
that is incorporated under the laws of Italy and is a party to the Italian Guarantee and (b) each Subsidiary of the US Borrower that is incorporated under the laws of Italy and that becomes a
party to the Italian Guarantee after the Closing Date pursuant to Section 9.11. 

        "Italian Share Pledge Agreements" shall mean (a) the Italian Pledge Agreement, entered into by the US Borrower and the
Administrative Agent for the benefit of the Lenders to the UK Borrower and (b) the Italian Pledge Agreement entered into by the US Borrower and the Administrative Agent for the benefit of the
Lenders to the US Borrower in each case, substantially in the form of Exhibit E-2(a) or (b), as applicable, as the same may be amended, supplemented or otherwise modified from time
to time. 

        "Italian Trademark Pledge Agreement" shall mean the unilateral pledge letter dated as of the Closing Date, entered into by Rockwood Italia
S.p.A. in favor of the Administrative Agent for the benefit of the Lenders to the UK Borrower, substantially in the form of Exhibit E-3, as the same may be amended, supplemented or
otherwise modified from time to time. 

        "JPMCB" shall mean JPMorgan Chase Bank, a New York banking corporation, and any successor thereto by merger, consolidation or otherwise. 

        "Judgment Currency" shall have the meaning set forth in Section 14.17. 

        "Judgment Currency Conversion Date" shall have the meaning set forth in Section 14.17. 

        "KKR" shall mean each of Kohlberg Kravis Roberts & Co., L.P. and KKR Associates, L.P. 

        "L/C Maturity Date" shall mean the date that is five Business Days prior to the Revolving Credit Maturity Date. 

        "L/C Participant" shall have the meaning provided in Section 3.3(a). 

        "L/C Participation" shall have the meaning provided in Section 3.3(a). 

        "L/C Reserve Account" shall have the meaning provided in Section 13.2(a). 

        "Lender" shall have the meaning provided in the preamble to this Agreement. 

        "Lender Default" shall mean (a) the failure (which has not been cured) of a Lender to make available its portion of any Borrowing
or to fund its portion of any unreimbursed payment under Section 3.3 or (b) a Lender having notified the Administrative Agent and/or the US Borrower that it does not intend to comply
with the obligations under Section 2.1(b), 2.1(d) or 3.3, in the case of either clause (a) or clause (b) above, as a result of the appointment of a receiver or conservator with
respect to such Lender at the direction or request of any regulatory agency or authority. 

        "Letter of Credit" shall mean each standby letter of credit issued pursuant to Section 3.1. 

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        "Letter of Credit Commitment" shall mean $35,000,000, as the same may be reduced from time to time pursuant to Section 3.1. 

        "Letter of Credit Exposure" shall mean, with respect to any Lender, at any time, the sum of (a) the Dollar Equivalent of the amount
of any Unpaid Drawings in respect of which such Lender has made (or is required to have made) payments to the Letter of Credit Issuer pursuant to Section 3.4(a) at such time and (b) such
Lender's Revolving Credit Commitment Percentage of the Letter of Credit Outstanding at such time (excluding the portion thereof consisting of Unpaid Drawings in respect of which the Lenders have made
(or are required to have made) payments to the Letter of Credit Issuer pursuant to Section 3.4(a)). 

        "Letter of Credit Fee" shall have the meaning provided in Section 4.1(b). 

        "Letter of Credit Issuer" shall mean JPMCB, any of its Affiliates or any successor pursuant to Section 3.6. The Letter of Credit
Issuer may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of the Letter of Credit Issuer, including with respect to Foreign Currency Letters of Credit, and in
each such case the term "Letter of Credit Issuer" shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate. In the event that there is more than one Letter of Credit
Issuer at any time, references herein and in the other Credit Documents to the Letter of Credit Issuer shall be deemed to refer to the Letter of Credit Issuer in respect of the applicable Letter of
Credit or to all Letter of Credit Issuers, as the context requires. 

        "Letter of Credit Outstanding" shall mean, at any time, the sum of, without duplication, (a) the aggregate Stated Amount of all
outstanding Letters of Credit and (b) the aggregate amount of all Unpaid Drawings in respect of all Letters of Credit. 

        "Letter of Credit Request" shall have the meaning provided in Section 3.2. 

        "Level I Status" shall mean, on any date, the Consolidated Total Debt to Consolidated EBITDA Ratio is greater than or equal to 4.50 to
1.00 as of such date. 

        "Level II Status" shall mean, on any date, the circumstance that Level I Status does not exist and the Consolidated Total Debt to
Consolidated EBITDA Ratio is greater than or equal to 4.00 to 1.00 as of such date. 

        "Level III Status" shall mean, on any date, the circumstance that neither Level I Status nor Level II Status exists and the Consolidated
Total Debt to Consolidated EBITDA Ratio is greater than or equal to 3.50 to 1.00 as of such date. 

        "Level IV Status" shall mean, on any date, the circumstance that the Consolidated Total Debt to Consolidated EBITDA Ratio is less than
3.50 to 1.00 as of such date. 

        "Lien" shall mean any mortgage, pledge, security interest, hypothecation, assignment, lien (statutory or other) or similar encumbrance
(including any agreement to give any of the foregoing, any conditional sale or other title retention agreement or any lease in the nature thereof). 

        "Loan" shall mean any Revolving Credit Loan, Swingline Loan or Term Loan made by any Lender hereunder. 

20

  

        "Local Time" shall mean (a) with respect to a Loan, Borrowing or Letter of Credit denominated in Dollars, New York time, and
(b) with respect to a Eurodollar Loan or Eurodollar Borrowing denominated in any Foreign Currency, London time. 

        "Management Group" shall mean, at any time, the Chairman of the Board, any President, any Executive Vice President or Vice President, any
Managing Director, any Treasurer and any Secretary of any of the Parent Companies, Holdings, the US Borrower or any Subsidiaries at such time. 

        "Mandatory Borrowing" shall have the meaning provided in Section 2.1(d). 

        "Material Adverse Change" shall mean any change in the business, assets, operations, properties or financial condition of Holdings, the US
Borrower and its Subsidiaries, taken as a whole, that would materially adversely affect the ability of Holdings, the US Borrower and the other Credit Parties, taken as a whole, to perform their
obligations under this Agreement or any of the other Credit Documents. 

        "Material Adverse Effect" shall mean a circumstance or condition affecting the business, assets, operations, properties or financial
condition of Holdings, the US Borrower and the Subsidiaries, taken as a whole, that would materially adversely affect (a) the ability of Holdings, the US Borrower and the other Credit Parties,
taken as a whole, to perform their obligations under this Agreement or any of the other Credit Documents or (b) the rights and remedies of the Administrative Agent and the Lenders under this
Agreement or any of the other Credit Documents. 

        "Material Subsidiary" shall mean, at any date of determination, the UK Borrower and each other Restricted Subsidiary of the US Borrower
(a) whose total assets at the last day of the Test Period ending on the last day of the most recent fiscal period for which Section 9.1 Financials have been delivered were equal to or
greater than 5% of the consolidated total assets of the US Borrower and the Restricted Subsidiaries at such date or (b) whose gross revenues for such Test Period were equal to or greater than
5% of the consolidated gross revenues of the US Borrower and the Restricted Subsidiaries for such period, in each case determined in accordance with GAAP. 

        "Maturity Date" shall mean the Tranche A Maturity Date, the Tranche B Maturity Date, the Tranche B-1 Maturity Date or the
Revolving Credit Maturity Date. 

        "Minimum Borrowing Amount" shall mean (a) with respect to a Dollar Borrowing of Term Loans or Revolving Credit Loans, $1,000,000,
(b) with respect to a Foreign Currency Borrowing of Term Loans or Revolving Credit Loans, the smallest amount of the applicable Foreign Currency that has a Dollar Equivalent in excess of
$1,000,000 and (c) with respect to a Borrowing of Swingline Loans, $100,000. 

        "Minority Investment" shall mean any Person (other than a Subsidiary) in which the US Borrower or any Restricted Subsidiary owns capital
stock or other equity interests. 

        "Moody's" shall mean Moody's Investors Service, Inc. or any successor by merger or consolidation to its business. 

        "Mortgage" shall mean a Mortgage, Assignment of Leases and Rents, Security Agreement and Financing Statement or other security document
entered into by the owner of a Mortgaged Property and the Administrative Agent for the benefit of the Lenders in respect of that Mortgaged Property, substantially in the form of Exhibit F or,
in the case of Mortgaged Properties located outside the United States of America, in such form as agreed between the US Borrower and the Administrative Agent, as the same may be amended, supplemented
or otherwise modified from time to time. 

21

 

        "Mortgaged Property" shall mean, initially, each parcel of real estate and the improvements thereto owned by a Credit Party and identified
on Schedule 1.1(b), and includes each other parcel of real property and improvements thereto with respect to which a Mortgage is granted pursuant to Section 9.15. 

        "Net Cash Proceeds" shall mean, with respect to any Prepayment Event or the issuance after the Closing Date by the US Borrower of any
capital stock, (a) the gross cash proceeds (including payments from time to time in respect of installment obligations, if applicable) received by or on behalf of Holdings, the US Borrower or
any of the Restricted Subsidiaries in respect of such Prepayment Event or issuance, as the case may be, less (b) the sum of: 

          (i)  in
the case of any Prepayment Event, the amount, if any, of all taxes paid or estimated to be payable by Holdings, the US Borrower or any of the Restricted Subsidiaries
in connection with such Prepayment Event, 

         (ii)  in
the case of any Prepayment Event, the amount of any reasonable reserve established in accordance with GAAP against any liabilities (other than any taxes deducted
pursuant to clause (i) above) (x) associated with the assets that are the subject of such Prepayment Event and (y) retained by Holdings, the US Borrower or any of the Restricted
Subsidiaries, provided that the amount of any subsequent reduction of such reserve (other than in connection with a payment in respect of any such
liability) shall be deemed to be Net Cash Proceeds of such a Prepayment Event occurring on the date of such reduction, 

        (iii)  in
the case of any Prepayment Event, the amount of any Indebtedness secured by a Lien on the assets that are the subject of such Prepayment Event to the extent that
the instrument creating or evidencing such Indebtedness requires that such Indebtedness be repaid upon consummation of such Prepayment Event, 

        (iv)  in
the case of any Asset Sale Prepayment Event (other than a transaction permitted by Section 10.4(e)), the amount of any proceeds of such Asset Sale Prepayment
Event that the US Borrower has reinvested (or intends to reinvest within one year of the date of such Asset Sale Prepayment Event) in the business of the US Borrower or any of the Restricted
Subsidiaries (subject to Section 9.14), provided that any portion of such proceeds that has not been so reinvested within such
one-year period shall (x) be deemed to be Net Cash Proceeds of an Asset Sale Prepayment Event occurring on the last day of such one-year period and (y) be applied
to the repayment of Term Loans in accordance with Section 5.2(a)(i); provided further that, for purposes of the preceding proviso, such
one-year period shall be extended by up to twelve months (or, if less, extended by up to the shortest period of time in excess of one year that such a reinvestment period exists pursuant
to, or may be extended under the terms of, any instrument governing any publicly offered or privately placed Indebtedness of the Parent Companies, Holdings or the US Borrower) from the last day of
such one-year period so long as (A) such proceeds are to be reinvested within such additional twelve-month period under the US Borrower's business plan as most recently adopted in
good faith by its Board of Directors and (B) the US Borrower believes in good faith that such proceeds will be so reinvested within such additional twelve-month period, and 

         (v)  in
the case of any Prepayment Event or the issuance by the US Borrower of any capital stock, reasonable and customary fees, commissions, expenses, issuance costs,
discounts and other costs paid by either of the Parent Companies, Holdings, the US Borrower or any of the Restricted Subsidiaries, as applicable, in connection with such Prepayment Event or issuance,
as the case may be (other than those payable to either of the Parent Companies, Holdings, the US Borrower or any Subsidiary of the US Borrower), in each case only to the extent not already deducted in
arriving at the amount referred to in clause (a) above. 

22

 

        "New Notes Equity Contribution" shall have the meaning provided in the preamble to this Agreement. 

        "New Senior Notes" shall have the meaning provided in the preamble to this Agreement. 

        "New Senior Notes Indenture" shall mean the Note dated as of the Closing Date issued by Holdings, pursuant to which the New Senior Notes
are issued, as the same may be amended, supplemented or otherwise modified from time to time to the extent permitted by Section 10.7(b). 

        "New Senior Notes Purchasers" shall mean Merrill Lynch Capital Corporation, JPMCB and Goldman, Sachs & Co. 

        "Non-Defaulting Lender" shall mean and include each Lender other than a Defaulting Lender. 

        "Non-Excluded Taxes" shall have the meaning provided in Section 5.4(a). 

        "Notice of Borrowing" shall have the meaning provided in Section 2.3. 

        "Notice of Conversion or Continuation" shall have the meaning provided in Section 2.6. 

        "Obligations" shall have the meaning assigned to such term in the Security Documents. 

        "Parent Common Stock" shall mean any class of common stock of Parent outstanding after the Closing Date. 

        "Parent Companies" shall have the meaning provided in the preamble and shall also include any direct or indirect wholly owned Subsidiary
of Parent or PIK Holdco formed pursuant to Section 10.3(F) and that is a direct or indirect parent company of Holdings. 

        "Participant" shall have the meaning provided in Section 14.6(c)(i). 

        "PBGC" shall mean the Pension Benefit Guaranty Corporation established pursuant to Section 4002 of ERISA, or any successor thereto. 

        "Perfection Certificate" shall mean a certificate in the form of Exhibit G or any other form approved by the Administrative Agent. 

        "Permitted Acquisition" shall mean the acquisition, by merger or otherwise, by the US Borrower or any of the Restricted Subsidiaries of
assets or capital stock or other equity interests, so long as (a) such acquisition and all transactions related thereto shall be consummated in accordance with applicable law; (b) such
acquisition shall result in the issuer of such capital stock or other equity interests becoming (i) a Restricted Subsidiary and (ii) (x) in the case of a Restricted Domestic
Subsidiary, a US Subsidiary Guarantor or (y) in the case of a Restricted Foreign Subsidiary, a Foreign Subsidiary Guarantor, in each case to the extent required by Section 9.11;
(c) such acquisition shall result in the Administrative Agent, for the benefit of the applicable Lenders, being granted a security interest in any capital stock or any assets so acquired to the
extent required by Sections 9.11, 9.12 and/or 9.15; (d) after giving effect to such acquisition, no Default or Event of Default shall have occurred and be continuing; and (e) the US
Borrower shall be in compliance, on a pro forma basis after giving effect to such acquisition (including any Indebtedness assumed or permitted to exist or incurred pursuant to Sections 10.1(j) and
10.1(k), respectively, and any related Pro Forma Adjustment), with the covenants set forth in Sections 10.9 and 10.10, as such covenants are recomputed as at the last day of the most recently ended
Test Period under such Sections as if such acquisition had occurred on the first day of such Test Period. 

        "Permitted Additional PIK Notes" shall mean PIK Notes other than PIK Notes issued as Permitted PIK Debt,  provided that the aggregate principal amount of Permitted
Additional PIK Notes and Permitted Additional Subordinated Notes outstanding at any time shall
not exceed 

23

 

$100,000,000,
plus accrued interest thereon as provided in the PIK Notes Documents or the Subordinated Note Indenture, as the case may be. 

        "Permitted Additional Subordinated Notes" shall mean Subordinated Notes other than Subordinated Notes issued as Permitted Subordinated
Debt, provided that the aggregate principal amount of Permitted Additional PIK Notes and Permitted Additional Subordinated Notes outstanding at any time
shall not exceed $100,000,000, plus accrued interest thereon as provided in the PIK Notes Documents or the Subordinated Note Indenture, as the case may
be. 

        "Permitted Capital Expenditure Amount" shall have the meaning given to such term in Section 10.11(a). 

        "Permitted Investments" shall mean (a) securities issued or unconditionally guaranteed by the United States government or any
agency or instrumentality thereof, in each case having maturities of not more than 24 months from the date of acquisition thereof; (b) securities issued by any state of the United States
of America or any political subdivision of any such state or any public instrumentality thereof or
any political subdivision of any such state or any public instrumentality thereof having maturities of not more than 24 months from the date of acquisition thereof and, at the time of
acquisition, having an investment grade rating generally obtainable from either S&P or Moody's (or, if at any time neither S&P nor Moody's shall be rating such obligations, then from another
nationally recognized rating service); (c) commercial paper issued by any Lender or any bank holding company owning any Lender; (d) commercial paper maturing no more than
12 months after the date of creation thereof and, at the time of acquisition, having a rating of at least A-2 or P-2 from either S&P or Moody's (or, if at any time
neither S&P nor Moody's shall be rating such obligations, an equivalent rating from another nationally recognized rating service); (e) domestic and eurodollar certificates of deposit or
bankers' acceptances maturing no more than two years after the date of acquisition thereof issued by any Lender or any other bank having combined capital and surplus of not less than $250,000,000 in
the case of domestic banks and $100,000,000 (or the dollar equivalent thereof) in the case of foreign banks; (f) repurchase agreements with a term of not more than 30 days for underlying
securities of the type described in clauses (a), (b) and (e) above entered into with any bank meeting the qualifications specified in clause (e) above or securities dealers of
recognized national standing; (g) marketable short-term money market and similar securities, having a rating of at least A-2 or P-2 from either S&P or
Moody's (or, if at any time neither S&P nor Moody's shall be rating such obligations, an equivalent rating from another nationally recognized rating service); (h) shares of investment companies
that are registered under the Investment Company Act of 1940 and invest solely in one or more of the types of securities described in clauses (a) through (g) above; and (i) in the
case of investments by any Restricted Foreign Subsidiary or investments made in a country outside the United States of America, other customarily utilized high-quality investments in the
country where such Restricted Foreign Subsidiary is located or in which such investment is made. 

        "Permitted Liens" shall mean (a) Liens for taxes, assessments or governmental charges or claims not yet due or which are being
contested in good faith and by appropriate proceedings for which appropriate reserves have been established in accordance with GAAP; (b) Liens in respect of property or assets of the US
Borrower or any of the Subsidiaries imposed by law, such as carriers', warehousemen's and mechanics' Liens and other similar Liens arising in the ordinary course of business, in each case so long as
such Liens arise in the ordinary course of business and do not individually or in the aggregate have a Material Adverse Effect; (c) Liens arising from judgments or decrees in circumstances not
constituting an Event of Default under Section 11.12; (d) Liens incurred or deposits made in connection with workers' compensation, unemployment insurance and other types of social
security, or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, government contracts, performance and return-of-money bonds and
other similar obligations incurred in the ordinary course of business; 

24

 

(e) ground
leases in respect of real property on which facilities owned or leased by the US Borrower or any of its Subsidiaries are located; (f) easements,
rights-of-way, restrictions, minor defects or irregularities in title and other similar charges or encumbrances not interfering in any material respect with the business of
Holdings, the US Borrower and its Subsidiaries, taken as a whole; (g) any interest or title of a lessor or secured by a lessor's interest under any lease permitted by this Agreement;
(h) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods; (i) Liens on goods the
purchase price of which is financed by a documentary letter of credit issued for the account of the US Borrower or any of its Subsidiaries, provided that such Lien secures only the obligations of the
US Borrower or such Subsidiaries in respect of such letter of credit to the extent permitted under Section 10.1; (j) leases or subleases granted to others not interfering in any material
respect with the business of Holdings, the US Borrower and its Subsidiaries, taken as a whole; and (k) Liens created in the ordinary course of business in favor of banks and other financial
institutions over credit balances of any bank accounts of any of the Parent Companies, Holdings, the US Borrower and the Restricted Subsidiaries held at such banks or financial institutions, as the
case may be, to facilitate the operation of cash pooling and/or interest set-off arrangements in respect of such bank accounts in the ordinary course of business. 

        "Permitted PIK Debt" shall mean (a) the PIK Notes and (b) the New Senior Notes,  provided that the aggregate principal amount of such PIK Notes and New Senior
Notes outstanding at any time shall not exceed $170,000,000, plus accrued
interest in accordance with the PIK Notes Documents or the New Senior Notes Indenture, as applicable. 

        "Permitted Sale Leaseback" shall mean any Sale Leaseback consummated by the US Borrower or any of the Restricted Subsidiaries after the
Closing Date, provided that such Sale Leaseback is consummated for fair value as determined at the time of consummation in good faith by the US Borrower
and, in the case of any Sale Leaseback (or series of related Sales Leasebacks) the aggregate proceeds of which exceed $20,000,000, the Board of Directors of the US Borrower (which such determination
may take into account any retained interest or other investment of the US Borrower or such Restricted Subsidiary in connection with, and any other material economic terms of, such Sale Leaseback). 

        "Permitted Subordinated Debt" shall mean the Subordinated Notes, provided that the
aggregate principal amount of such Subordinated Notes outstanding at any time shall not exceed $375,000,000. 

        "Person" shall mean any individual, partnership, joint venture, firm, corporation, limited liability company, association, trust or other
enterprise or any Governmental Authority. 

        "PIK Holdco" shall have the meaning provided in the preamble to this Agreement. 

        "PIK Notes" shall mean (a) the $100,000,000 in aggregate principal amount of pay-in-kind notes of PIK
Holdco issued pursuant to the PIK Notes Documents and (b) any replacement or refinancing thereof having terms no more adverse to the interests of the Lenders than the terms thereof,  provided that
any such amendment, replacement or refinancing shall bear a rate of interest determined by the Board of Directors of PIK Holdco to be a
market rate of interest at the date of such amendment, replacement or refinancing and have other terms customary for similar issuances under similar market conditions or otherwise be on terms
reasonably acceptable to the Administrative Agent. 

        "PIK Notes Documents" shall mean (a) the PIK Bridge Loan Agreement dated as of November 20, 2000, as amended, among PIK
Holdco, as Borrower, the lenders from time to time parties thereto, Merrill Lynch Capital Corporation, as agent, and Merrill Lynch International, as arranger, pursuant to which the PIK Notes were
issued, and (b) the PIK Note Purchase 

25

 

Agreement
between PIK Holdco and Allianz Lebensversicherungs-AG, Stuttgart, dated as of February 7, 2001, as the same may be amended, supplemented or otherwise modified from time to
time to the extent permitted by Section 10.7(b). 

        "PIK Proceeds Equity Contribution" shall mean the contribution by Holdings to the US Borrower as common equity of an amount in cash equal
to the amount of the Net Cash Proceeds of Permitted Additional PIK Notes issued by PIK Holdco, with such contribution made using the Net Cash Proceeds of a prior contribution in cash by PIK Holdco to
Holdings from the Net Cash Proceeds of the issuance by PIK Holdco of such Permitted Additional PIK Notes. 

        "PIK Proceeds Prepayment Event" shall mean any issuance by the US Borrower of any capital stock pursuant to a PIK Proceeds Equity
Contribution. 

        "Plan" shall mean any multiemployer or single-employer plan, as defined in Section 4001 of ERISA and subject to Title IV of ERISA,
that is or was within any of the preceding five plan years maintained or contributed to by (or to which there is or was an obligation to contribute or to make payments to) the US Borrower, a
Subsidiary or an ERISA Affiliate. 

        "Pledge Agreement" shall mean the Pledge Agreement, entered into by Holdings, the US Borrower, the other pledgors party thereto and the
Administrative Agent for the benefit of the Lenders, substantially in the form of Exhibit H, as the same may be amended, supplemented or otherwise modified from time to time. 

        "Prepayment Event" shall mean any Asset Sale Prepayment Event, Debt Incurrence Prepayment Event, PIK Proceeds Prepayment Event or any
Permitted Sale Leaseback. 

        "Prime Rate" shall mean the rate of interest per annum publicly announced from time to time by the Administrative Agent as its reference
rate in effect at its principal office in New York City (the Prime Rate not being intended to be the lowest rate of interest charged by JPMCB in connection with extensions of credit to debtors). 

        "Pro Forma Adjustment" shall mean, for any test period that includes any of the six fiscal quarters first ending following any Permitted
Acquisition, with respect to the Acquired EBITDA of the applicable Acquired Entity or Business or the Consolidated EBITDA of the Borrower affected by such acquisition, the pro forma increase or
decrease in such Acquired EBITDA or such Consolidated EBITDA, as the case may be, projected by the US Borrower in good faith as a result of reasonably identifiable and supportable net cost savings or
additional net costs, as the case may be, realizable during such period by combining the operations of such Acquired Entity or Business with the operations of the US Borrower and its Subsidiaries,  provided that so long as such net cost savings or additional net costs will be realizable at any time during such six-quarter period, it may
be assumed, for purposes of projecting such pro forma increase or decrease to such Acquired EBITDA or such Consolidated EBITDA, as the case may be, that such net cost savings or additional net costs
will be realizable during the entire such period; provided further that any such pro forma increase or decrease to such Acquired EBITDA or such
Consolidated EBITDA, as the case may be, shall be without duplication for net cost savings or additional net costs actually realized during such period and already included in such Acquired EBITDA or
such Consolidated EBITDA, as the case may be. 

        "Pro Forma Adjustment Certificate" shall mean any certificate of an Authorized Officer of the US Borrower delivered pursuant to
Section 9.1(h) or setting forth the information described in clause (iv) to Section 9.1(d). 

        "Purchase Agreement" shall mean the Business and Share Sale and Purchase Agreement dated September 25, 2000, between the Seller and
Parent pursuant to which Parent, the US Borrower and the Subsidiaries (i) acquired from the Seller (x) all the Seller's assets (including capital stock) 

26

 

primarily
used in the conduct of the Seller's Plastics & Compounding, Water Technologies, Timber Treatments, Water Treatments, GD Holmes, Electronics, Pigments and Additives business divisions
and (y) all the outstanding capital stock of Laporte Electronics France, S.A. and (ii) assumed certain liabilities of the Seller, all as provided in such purchase agreement, for
consideration payable to the Seller in the aggregate amount of $1,175,000,000 in cash (subject to certain purchase price adjustments in accordance with such purchase agreement). 

        "Qualified Preferred Stock" shall mean any preferred capital stock or preferred equity interest of any of the Parent Companies
(a) that does not provide for any cash dividend payments or other cash distributions in respect thereof on or prior to the Tranche B Term Loan Maturity Date and (b) that by its terms (or
by the terms of any security into which it is convertible or for which it is exchangeable or exercisable) or upon the happening of any event does not (i)(x) mature or become mandatorily
redeemable pursuant to a sinking fund obligation or otherwise, (y) become convertible or exchangeable at the option of the holder thereof for Indebtedness or preferred stock that is not
Qualified Preferred Stock or (z) become redeemable at the option of the holder thereof (other than as a result of a change of control event), in whole or in part, in each case on or prior to
the first anniversary of the Tranche B Term Loan Maturity Date and (ii) provide holders thereunder with any rights upon the occurrence of a "change of control" event prior to the repayment of
the Obligations under the Credit Documents. 

        "Quotation Day" shall mean, with respect to any Eurodollar Borrowing denominated in a Foreign Currency and any Interest Period, the day on
which it is market practice in the relevant interbank market for prime banks to give quotations for deposits in the currency of such Borrowing for delivery on the first day of such Interest Period. If
such quotations would normally be given by prime banks on more than one day, the Quotation Day will be the last of such days. 

        "Real Estate" shall have the meaning given to that term in Section 9.1(f). 

        "Recalculation Date" shall have the meaning provided in Section 1.2. 

        "Reference Lender" shall mean JPMCB. 

        "Refinancing" shall mean the repayment by the US Borrower and the UK Borrower of (a) all obligations under the Existing Credit
Agreement and (b) all the US Borrower's senior subordinated
notes due 2010 issued pursuant to the Existing Indenture and all other obligations under the Existing Indenture. 

        "Register" shall have the meaning provided in Section 14.6(b)(iv). 

        "Regulation D" shall mean Regulation D of the Board as from time to time in effect and any successor to all or a portion thereof
establishing reserve requirements. 

        "Regulation T" shall mean Regulation T of the Board as from time to time in effect and any successor to all or a portion thereof
establishing margin requirements. 

        "Regulation U" shall mean Regulation U of the Board as from time to time in effect and any successor to all or a portion thereof
establishing margin requirements. 

        "Regulation X" shall mean Regulation X of the Board as from time to time in effect and any successor to all or a portion thereof
establishing margin requirements. 

        "Related Parties" means, with respect to any specified Person, such Person's Affiliates and the directors, officers, employees, agents,
trustees, advisors of such Person and any Person that possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of such Person, whether through the
ability to exercise voting power, by contract or otherwise. 

27

 

        "Repayment Amount" shall mean any Tranche A Repayment Amount, any Tranche B Repayment Amount or any Tranche B-1 Repayment
Amount. 

        "Repayment Date" shall mean a Tranche A Repayment Date, a Tranche B Repayment Date or a Tranche B-1 Repayment Date. 

        "Reportable Event" shall mean an event described in Section 4043 of ERISA and the regulations thereunder. 

        "Required Lenders" shall mean, at any date, (a) Non-Defaulting Lenders having or holding a majority of the sum of
(i) the Adjusted Total Revolving Credit Commitment at such date, (ii) the Adjusted Total Term Loan Commitment at such date and (iii) the outstanding principal amount of the Term
Loans (excluding the Term Loans held by Defaulting Lenders) at such date or (b) if the Total Revolving Credit Commitment and the Total Term Loan Commitment have been terminated or for the
purposes of acceleration pursuant to Section 11, the holders (excluding Defaulting Lenders) of a majority of the outstanding principal amount of the Loans and Letter of Credit Exposures
(excluding the Loans and Letter of Credit Exposures of Defaulting Lenders) in the aggregate at such date. 

        "Required Revolving Credit Lenders" shall mean, at any date, (a) Non-Defaulting Lenders having or holding a majority of
the Dollar Equivalent of the Adjusted Total Revolving Credit Commitment at such date or (b) if the Total Revolving Credit Commitment has been terminated, the holders (excluding Defaulting
Lenders) of a majority of the outstanding principal amount of the Dollar Equivalent of the Revolving Credit Loans and Letter of Credit Exposures (excluding the Loans and Letter of Credit Exposures of
Defaulting Lenders) in the aggregate at such date. 

        "Required Tranche A Lenders" shall mean, at any date, Non-Defaulting Lenders having or holding a majority of the sum of
(a) the portion of the Adjusted Total Term Loan Commitment that relates to Tranche A Term Loan Commitments at such date and (b) the outstanding principal amount of the Tranche A Term
Loans (excluding the Tranche A Term Loans held by Defaulting Lenders) in the aggregate at such date. 

        "Required Tranche B Lenders" shall mean, at any date, Non-Defaulting Lenders having or holding a majority of the sum of
(a) the portion of the Adjusted Total Term Loan Commitment that relates to Tranche B Term Loan Commitments at such date and (b) the outstanding principal amount of the Tranche B Term
Loans (excluding the Tranche B Term Loans held by Defaulting Lenders) in the aggregate at such date. 

        "Required Tranche B-1 Lenders" shall mean, at any date, Non-Defaulting Lenders having or holding a majority of the
sum of (a) the portion of the Adjusted Total Term Loan Commitment that relates to Tranche B-1 Term Loan Commitments at such date and (b) the outstanding principal amount of
the Tranche B-i Term Loans (excluding the Tranche B-1 Term Loans held by Defaulting Lenders) in the aggregate at such date. 

        "Requirement of Law" shall mean, as to any Person, the Certificate of Incorporation and By-Laws or other organizational or
governing documents of such Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon
such Person or any of its property or assets or to which such Person or any of its property or assets is subject. 

28

  

        "Restricted Domestic Subsidiary" shall mean each Restricted Subsidiary that is also a Domestic Subsidiary. 

        "Restricted Foreign Subsidiary" shall mean a Foreign Subsidiary that is a Restricted Subsidiary. 

        "Restricted Subsidiary" shall mean any Subsidiary of the US Borrower other than an Unrestricted Subsidiary. 

        "Revolving Credit Commitment" shall mean, (a) with respect to each Lender that is a Lender on the date hereof, the amount set forth
opposite such Lender's name on Schedule 1.1(c) as such Lender's "Revolving Credit Commitment" and (b) in the case of any Lender that becomes a Lender after the date hereof, the amount
specified as such Lender's "Revolving Credit Commitment" in the Assignment and Acceptance pursuant to which such Lender assumed a portion of the Total Revolving Credit Commitment, in each case as the
same may be changed from time to time pursuant to the terms hereof. 

        "Revolving Credit Commitment Percentage" shall mean at any time, for each Lender, the percentage obtained by dividing (a) such
Lender's Revolving Credit Commitment by (b) the aggregate amount of the Revolving Credit Commitments, provided that at any time when the Total
Revolving Credit Commitment shall have been terminated, each Lender's Revolving Credit Commitment Percentage shall be its Revolving Credit Commitment Percentage as in effect immediately prior to such
termination. 

        "Revolving Credit Exposure" shall mean, with respect to any Lender at any time, the sum of (a) the aggregate principal amount of
the Dollar Equivalent of the Revolving Credit Loans of such Lender then outstanding, (b) such Lender's Letter of Credit Exposure at such time and (c) such Lender's Swingline Exposure at
such time. 

        "Revolving Credit Loans" shall have the meaning provided in Section 2.1(b). 

        "Revolving Credit Maturity Date" shall mean the date that is six years after the Closing Date, or, if such date is not a Business Day, the
next preceding Business Day. 

        "Sale Leaseback" shall mean any transaction or series of related transactions pursuant to which the US Borrower or any of the Restricted
Subsidiaries (a) sells, transfers or otherwise disposes of any property, real or personal, whether now owned or hereafter acquired, and (b) as part of such transaction, thereafter rents
or leases such property or other property that it intends to use for substantially the same purpose or purposes as the property being sold, transferred or disposed. 

        "S&P" shall mean Standard & Poor's Ratings Services or any successor by merger or consolidation to its business. 

        "SEC" shall mean the Securities and Exchange Commission or any successor thereto. 

        "Section 9.1 Financials" shall mean the financial statements delivered, or required to be delivered, pursuant to Section 9.1
(a) or (b) together with the accompanying officer's certificate delivered, or required to be delivered, pursuant to Section 9.1(e). 

        "Secured Parties" shall have the meaning assigned to such term in the applicable Security Documents. 

        "Security Agreement" shall mean the Security Agreement entered into by the US Borrower, the other grantors party thereto and the
Administrative Agent for the benefit of the Lenders, substantially in the form of Exhibit I, as the same may be amended, supplemented or otherwise modified from time to time. 

29

 

        "Security Documents" shall mean, collectively, (a) the Guarantee, (b) the Pledge Agreement, (c) the Security
Agreement, (d) the Foreign Security Documents, (e) the Mortgages and (f) each other security agreement or other instrument or document executed and delivered pursuant to
Section 9.11 or 9.12 or pursuant to any of the Security Documents to secure any of the Obligations. 

        "Seller" shall mean Laporte Plc. 

        "Singapore Guarantee" shall mean the Singapore Guarantee Agreement, made by each of the Singapore Guarantors in favor of the
Administrative Agent for the benefit of the Lenders to the UK Borrower,
substantially in the form of Exhibit J-1, as the same may be amended, supplemented or otherwise modified from time to time. 

        "Singapore Guarantors" shall mean (a) each Subsidiary of the US Borrower (other than an Unrestricted Subsidiary) on the Closing
Date that is incorporated under the laws of Singapore P.O.C. and is a party to the Singapore Guarantee and (b) each Subsidiary of the US Borrower that is incorporated under the laws of
Singapore P.O.C. and that becomes a party to the Singapore Guarantee after the Closing Date pursuant to Section 9.11. 

        "Singapore Pledge Agreements" shall mean (a) the Singapore Pledge Agreement, entered into by the US Borrower and the Administrative
Agent for the benefit of the Lenders to the UK Borrower and (b) the Singapore Pledge Agreement entered into by the US Borrower and the Administrative Agent for the benefit of the Lenders to the
US Borrower in each case, substantially in the form of Exhibit J-2(a) or (b), as applicable, as the same may be amended, supplemented or otherwise modified from time to time. 

        "Singapore Security Agreement" shall mean the Singapore Fixed and Floating Charge entered into by the Singapore Guarantors, certain other
Restricted Subsidiaries and the Administrative Agent for the benefit of the Lenders to the UK Borrower, substantially in the form of Exhibit J-3, as the same may be amended,
supplemented or otherwise modified from time to time. 

        "Sold Entity or Business" shall have the meaning provided in the definition of the term "Consolidated EBITDA". 

        "Specified Obligations" shall mean Obligations consisting of (a) the principal and interest on Loans and (b) reimbursement
obligations in respect of Letters of Credit. 

        "Specified Subsidiary" shall mean, at any date of determination, (a) any Material Subsidiary or (b) any Unrestricted
Subsidiary (i) whose total assets at the last day of the Test Period ending on the last day of the most recent fiscal period for which Section 9.1 Financials have been delivered were
equal to or greater than 15% of the consolidated total assets of the US Borrower and the Subsidiaries at such date or (ii) whose gross revenues for such Test Period were equal to or greater
than 15% of the consolidated gross revenues of the US Borrower and the Subsidiaries for such period, in each case determined in accordance with GAAP. 

        "Stated Amount" of any Letter of Credit shall mean the maximum amount from time to time available to be drawn thereunder, determined
without regard to whether any conditions to drawing could then be met. 

        "Status" shall mean, as to the US Borrower as of any date, the existence of Level I Status, Level II Status, Level III Status or Level IV
Status, as the case may be on such date. Changes in Status resulting from changes in the Consolidated Total Debt to Consolidated EBITDA Ratio shall become effective (the date of such effectiveness,
the "Effective Date") as of the first day following the last day of the most recent fiscal year or period for which (a) Section 9.1
Financials are delivered to the Lenders under Section 9.1 and (b) an officer's certificate is delivered by the US Borrower to the Lenders setting forth, with respect to such
Section 9.1 Financials, the 

30

 

then-applicable
Status, and shall remain in effect until the next change to be effected pursuant to this definition, provided that
(i) if the US Borrower shall have made any payments in respect of interest or commitment fees during the period (the "Interim Period") from and
including the Effective Date to but excluding the day any change in Status is determined as provided above, then the amount of the next such payment due on or after such day shall be increased or
decreased by an amount equal to any underpayment or overpayment so made by the US Borrower during such Interim Period and (ii) each determination of the Consolidated Total Debt to Consolidated
EBITDA Ratio pursuant to this definition shall be made with respect to the Test Period ending at the end of the fiscal period covered by the relevant financial statements. 

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

        "Sterling" or "£" shall mean the lawful money of the United Kingdom. 

        "Subordinated Note Indenture" shall mean the Indenture dated as of the Closing Date, among the US Borrower, the guarantors party thereto
and The Bank of New York, as trustee, pursuant to which the Subordinated Notes are issued, as the same may be amended, supplemented or otherwise modified from time to time to the extent permitted by
Section 10.7(b). 

        "Subordinated Notes" shall mean (a) the 105/8% Senior Subordinated Notes due 2011 of the US Borrower issued pursuant
to the Subordinated Note Indenture and (b) any replacement or refinancing thereof having terms no more adverse to the interests of the Lenders than the terms thereof,  provided that any such
amendment, replacement or refinancing shall bear a rate of interest determined by the Board of
Directors of the US Borrower to be a market rate of interest at the date of such amendment, replacement or refinancing and have other terms customary for similar issuances under similar market
conditions or otherwise be on terms reasonably acceptable to the Administrative Agent. 

        "Subsidiary" of any Person shall mean and include (a) any corporation more than 50% of whose stock of any class or classes having
by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time stock of any class or classes of such corporation shall
have or might have voting power by reason of the happening of any contingency) is at the time owned by such Person directly or indirectly through Subsidiaries and (b) any partnership,
association, joint venture or other entity in which such Person directly or indirectly through Subsidiaries has more than a 50% equity interest at the time. Unless otherwise expressly provided, all
references herein to a "Subsidiary" shall mean a Subsidiary of the US Borrower. 

        "Swingline Commitment" shall mean $25,000,000. 

        "Swingline Exposure" shall mean, at any time, the aggregate principal amount of all Swingline Loans then outstanding. The Swingline
Exposure of any Lender at any time shall mean the sum of (a) the aggregate principal amount of Swingline Loans then outstanding in respect of which such 

31

 

Lender
has made (or is required to have made) payments to the Swingline Lender pursuant to Section 2.1(d) and (b) such Lender's Revolving Credit Commitment Percentage of the aggregate
Swingline Exposure at such time (excluding the portion thereof consisting of Swingline Loans in respect of which the Lenders have made (or are required to have made) payments to the Swingline Lender
pursuant to Section 2.1(d)). 

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

        "Swingline Loans" shall have the meaning provided in Section 2.1(c). 

        "Swingline Maturity Date" shall mean, with respect to any Swingline Loan, the date that is five Business Days prior to the Revolving
Credit Maturity Date. 

        "Syndication Agent" shall mean Merrill Lynch, Pierce, Fenner & Smith Incorporated, together with its affiliates, as the syndication
agent for the Lenders under this Agreement and the other Credit Documents. 

        "Taiwan Pledge Agreements" shall mean (a) the Taiwan Pledge Agreement, entered into by the US Borrower and the Administrative Agent
for the benefit of the Lenders to the UK Borrower and (b) the Taiwan Pledge Agreement entered into by the US Borrower and the Administrative Agent for the benefit of the Lenders to the US
Borrower in each case, substantially in the form of Exhibit K(a) or (b), as applicable, as the same may be amended, supplemented or otherwise modified from time to time. 

        "Term Loan" shall mean any Tranche A Term Loan, Tranche B Term Loan or Tranche B-1 Term Loan. 

        "Term Loan Commitment" shall mean, with respect to each Lender, such Lender's Tranche A Term Loan Commitment, Tranche B Term Loan
Commitment and Tranche B-1 Term Loan Commitment. 

        "Test Period" shall mean, for any determination under this Agreement, the four consecutive fiscal quarters of the US Borrower then last
ended. 

        "Total Commitment" shall mean the sum of the Total Term Loan Commitment and the Total Revolving Credit Commitment. 

        "Total Credit Exposure" shall mean, at any date, the sum of (a) the Total Revolving Credit Commitment at such date, (b) the
Total Term Loan Commitment at such date and (c) the outstanding principal amount of all Term Loans at such date. 

        "Total Revolving Credit Commitment" shall mean the sum of the Revolving Credit Commitments of all the Lenders. 

        "Total Term Loan Commitment" shall mean the sum of the Term Loan Commitments of all the Lenders. 

        "Tranche A Repayment Amount" shall have the meaning provided in Section 2.5(b)(i). 

        "Tranche A Repayment Date" shall have the meaning provided in Section 2.5(b)(i). 

        "Tranche A Term Loan" shall have the meaning provided in Section 2.1. 

        "Tranche A Term Loan Commitment" shall mean, (a) in the case of each Lender that is a Lender on the date hereof, the amount set
forth opposite such Lender's name on Schedule 1.1(c) as such Lender's "Tranche A Term Loan Commitment" and (b) in the case of any Lender that becomes a Lender after the date hereof, the
amount specified as such Lender's "Tranche A Term Loan Commitment" in the Assignment and Acceptance pursuant to which such Lender assumed a 

32

 

portion
of the Total Term Loan Commitment, in each case as the same may be changed from time to time pursuant to the terms hereof. 

        "Tranche A Term Loan Maturity Date" shall mean the date that is six years after the Closing Date, or, if such date is not a Business Day,
the next preceding Business Day. 

        "Tranche B Repayment Amount" shall have the meaning provided in Section 2.5(b)(ii). 

        "Tranche B Repayment Date" shall have the meaning provided in Section 2.5(b)(ii). 

        "Tranche B Term Loan" shall have the meaning provided in Section 2.1. 

        "Tranche B Term Loan Commitment" shall mean, (a) in the case of each Lender that is a Lender on the date hereof, the amount set
forth opposite such Lender's name on Schedule 1.1(c) as such Lender's "Tranche B Term Loan Commitment" and (b) in the case of any Lender that becomes a Lender after the date hereof, the
amount specified as such Lender's "Tranche B Term Loan Commitment" in the Assignment and Acceptance pursuant to which such Lender assumed a portion of the Total Term Loan Commitment, in each case as
the same may be changed from time to time pursuant to the terms hereof. 

        "Tranche B Term Loan Maturity Date" shall mean the date that is seven years after the Closing Date, or, if such date is not a Business
Day, the next preceding Business Day. 

        "Tranche B-1 Repayment Amount" shall have the meaning provided in Section 2.5(b)(iii). 

        "Tranche B-1 Repayment Date" shall have the meaning provided in Section 2.5(b)(iii). 

        "Tranche B-1 Term Loan" shall have the meaning provided in Section 2.1. 

        "Tranche B-1 Term Loan Commitment" shall mean, (a) in the case of each Lender that is a Lender on the date hereof, the
amount set forth opposite such Lender's name on Schedule 1.1(c) as such Lender's "Tranche B-1 Term Loan Commitment" and (b) in the case of any Lender that becomes a Lender
after the date hereof, the amount specified as such Lender's "Tranche B-1 Term Loan Commitment" in the Assignment and Acceptance pursuant to which such Lender assumed a portion of the
Total Term Loan Commitment, in each case as the same may be changed from time to time pursuant to the terms hereof. 

        "Tranche B-1 Term Loan Maturity Date" shall mean the date that is seven years after the Closing Date, or, if such date is not
a Business Day, the next preceding Business Day. 

        "Transaction Expenses" shall mean any fees or expenses incurred or paid by Parent or any of its Subsidiaries in connection with the
Refinancing, this Agreement and the other Credit Documents and the transactions contemplated hereby and thereby. 

        "Transferee" shall have the meaning provided in Section 14.6(e). 

        "Treaty Lender" shall mean a Person who, by virtue of a double taxation agreement between the United Kingdom and the country of residence
of that Person, is (subject only to a prior direction given to the UK Borrower by the United Kingdom Inland Revenue following an application by that Person) eligible to receive payments from the UK
Borrower under this Agreement, (a) in the case of an original Lender under this Agreement, without any deduction in respect of taxes or (b) in the case of a Transferee, subject to a
deduction in respect of taxes to an extent no greater than that which applied to the original Lender from which the Transferee acquired its Commitments. 

        "Type" shall mean (a) as to any Tranche B Term Loan, its nature as an ABR Loan or a Eurodollar Term Loan and (b) as to any
Tranche A Term Loan or any Tranche B-1 Term Loan, its nature as a Eurodollar Term Loan, (c) as to any Dollar Revolving Credit Loan, its nature as an 

33

 

ABR
Loan or a Eurodollar Revolving Credit Loan and (d) as to any Foreign Currency Revolving Credit Loan, its nature as a Eurodollar Revolving Credit Loan. 

        "Unfunded Current Liability" of any Plan shall mean the amount, if any, by which the present value of the accrued benefits under the Plan
as of the close of its most recent plan year, determined in accordance with Statement of Financial Accounting Standards No. 87 as in effect on the date hereof, based upon the actuarial
assumptions that would be used by the Plan's actuary in a termination of the Plan, exceeds the fair market value of the assets allocable thereto. 

        "UK Borrower" shall have the meaning provided in the preamble to this Agreement. 

        "UK Debenture" shall mean the Debenture entered into by the UK Borrower, the UK Guarantors and the Administrative Agent for the benefit of
the Lenders to the UK Borrower, substantially in the form of Exhibit L-1, as the same may be amended, supplemented or otherwise modified from time to time. 

        "UK Guarantee" shall mean the UK Guarantee Agreement, made by the US Borrower and each of the UK Guarantors in favor of the Administrative
Agent for the benefit of the Lenders to the UK Borrower, substantially in the form of Exhibit L-2, as the same may be amended, supplemented or otherwise modified from time to time. 

        "UK Guarantors" shall mean (a) each Subsidiary of the US Borrower (other than the UK Borrower and an Unrestricted Subsidiary) on
the Closing Date that is incorporated under the laws of England and Wales and (b) each Subsidiary of the US Borrower that is incorporated under the laws of England and Wales and that becomes a
party to the UK Guarantee after the Closing Date pursuant to Section 9.11. 

        "UK Lender" shall mean a Person who is (a) a company resident in the United Kingdom for tax purposes, (b) a partnership each
of whose members is a company so resident, or (c) a company not so resident in the United Kingdom for tax purposes, but which carries on a trade in the United Kingdom through a branch or agency
and is subject to corporation tax on interest paid to it under this Agreement. 

        "UK Pledge Agreements" shall mean (a) the Charge Over Shares, entered into by the US Borrower and the Administrative Agent for the
benefit of the Lenders to the UK Borrower and (b) the Charge Over Shares, entered into by the US Borrower and the Administrative Agent for the benefit of the Lenders to the US Borrower, in each
case substantially in the form of Exhibit L-3(a) or (b), as applicable, as the same may be amended, supplemented or otherwise modified from time to time. 

        "Unpaid Drawing" shall have the meaning provided in Section 3.4(a). 

        "Unrestricted Subsidiary" shall mean (a) any Subsidiary of the US Borrower that is formed or acquired after the Closing Date (other
than a Subsidiary that becomes or is required to become a Credit Party hereunder), provided that at such time (or promptly thereafter) the US Borrower
designates such Subsidiary an Unrestricted Subsidiary in a written notice to the Administrative Agent, (b) any Restricted Subsidiary (other than a Restricted Subsidiary that is or becomes a
Credit Party) subsequently redesignated as an Unrestricted Subsidiary by the US Borrower in a written notice to the Administrative Agent, provided that (x) such re-designation shall
be deemed to be an investment on the date of such re-designation in an Unrestricted Subsidiary in an amount equal to the sum of (i) the net worth of such re-designated
Restricted Subsidiary immediately prior to such re-designation (such net worth to be calculated without regard to any guarantee provided by such re-designated Restricted
Subsidiary) and (ii) the aggregate principal amount of any Indebtedness owed by such re-designated Restricted Subsidiary to the US Borrower or any other Restricted Subsidiary
immediately prior to such re-designation, all calculated, except as set forth in 

34

 

the
parenthetical to clause (i), on a consolidated basis in accordance with GAAP and (y) no Default or Event of Default would result from such re-designation and
(c) each Subsidiary of an Unrestricted Subsidiary; provided, however, that at the time of any
written re-designation by the US Borrower to the Administrative Agent that any Unrestricted Subsidiary shall no longer constitute an Unrestricted Subsidiary, such Unrestricted Subsidiary
shall cease to be an Unrestricted Subsidiary to the extent no Default or Event of Default would result from such re-designation. On or promptly after the date of its formation, acquisition
or redesignation, as applicable, each Unrestricted Subsidiary (other than an Unrestricted Subsidiary that is a Foreign Subsidiary) shall have entered into a tax sharing agreement containing terms
that, in the reasonable judgment of the Administrative Agent, provide for an appropriate allocation of tax liabilities and benefits. 

        "US Borrower" shall have the meaning provided in the preamble to this Agreement. 

        "US Subsidiary Guarantors" shall mean (a) each Domestic Subsidiary (other than an Unrestricted Subsidiary) on the Closing Date and
(b) each Domestic Subsidiary that becomes a party to the Guarantee after the Closing Date pursuant to Section 9.11. 

        "Voting Stock" shall mean, with respect to any Person, shares of such Person's capital stock having the right to vote for the election of
directors of such Person under ordinary circumstances. 

        "Whitewash Requirements" shall have the meaning provided in Section 8.16. 

        (b)   The
words "hereof," "herein" and "hereunder" and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement, and Section references are to Sections of this Agreement unless otherwise specified. The words "include," "includes" and "including" shall be deemed to be followed by the
phrase "without limitation". 

        1.2    Exchange Rates.    (a) Not later than 1:00 p.m. (New York time) on each Calculation Date, the
Administrative Agent shall (i) determine the Exchange Rate as of such Calculation Date with respect to each Foreign Currency to be used for calculating the Dollar Equivalent and
(ii) give notice thereof to the Lenders and the US Borrower (on behalf of itself and the UK Borrower). The Exchange Rates so determined shall become effective on the first Business Day
immediately following the relevant Calculation Date (a "Recalculation Date"), shall remain effective until the next succeeding Recalculation Date, and
shall for all purposes of this Agreement (other than any provision expressly requiring the use of a current Exchange Rate) be the Exchange Rates employed in converting any amounts between Dollars and
Foreign Currencies. 

        (b)   Not
later than 5:00 p.m. (New York time) on each Recalculation Date and each date on which Foreign Currency Revolving Loans are made, the Administrative Agent
shall (i) determine the aggregate amount of the Dollar Equivalents of (A) the principal amounts of the Foreign Currency Revolving Loans then outstanding (after giving effect to any
Foreign Currency Revolving Loans made or repaid on such date), (B) the face value of outstanding Foreign Currency Letters of Credit and (C) Unpaid Drawings in respect of Foreign Currency
Letters of Credit and (ii) notify the Lenders and the US Borrower (on behalf of itself and the UK Borrower) of the results of such determination. 

        (c)   For
purposes of determining compliance under Sections 10.4, 10.5, 10.6, 10.9, 10.10 and 10.11 with respect to any amount in a Foreign Currency, such amount shall
be deemed to equal the Dollar Equivalent thereof based on the average daily Exchange Rate for such Foreign Currency for the most recent twelve-month period immediately prior to the date of
determination determined in a manner consistent with that used in calculating Consolidated EBITDA for the related period. For purposes of determining compliance with Sections 10.1 and 10.2,
with respect to any amount of Indebtedness in a Foreign Currency, compliance will be determined at the time of incurrence thereof using the Dollar Equivalent thereof at the Exchange Rate in effect at
the time of such incurrence. 

35

   
        1.3    Redenomination of Certain Foreign Currencies.    (a) Each obligation of any party to this Agreement to
make a payment denominated in Sterling on or after the date the United Kingdom adopts the Euro as its lawful currency after the date hereof shall be redenominated into Euro at the time of such
adoption (in accordance with the EMU Legislation). If, in relation to Sterling, the basis of accrual of interest expressed in this Agreement in respect of that currency shall be inconsistent with any
convention or practice in the London Interbank Market for the basis of accrual of interest in respect of the Euro, such expressed basis shall be replaced by such convention or practice with effect
from the date on which the United Kingdom adopts the Euro as its lawful currency, provided that if any Foreign Currency Borrowing in Sterling is outstanding immediately prior to such date, such
replacement shall take effect, with respect to such Foreign Currency Borrowing, at the end of the then current Interest Period. 

        (b)   Each
provision of this Agreement shall be subject to such reasonable changes of construction as the Administrative Agent, in consultation with the US Borrower and the UK
Borrower, may from time to time specify to be appropriate to reflect the adoption of the Euro by the United Kingdom and any relevant market conventions or practices relating to the Euro. 

        SECTION 2.    Amount and Terms of Credit    

        2.1    Commitments.    (a) Subject to and upon the terms and conditions herein set forth, 

        (i)    each
Lender having a Tranche A Term Loan Commitment severally agrees to make a loan or loans (each a "Tranche A Term
Loan" and, collectively, the "Tranche A Term Loans") to the UK Borrower in Euro, which Tranche A Term Loans shall
not exceed for any such Lender the Tranche A Term Loan Commitment of such Lender; 

        (ii)   each
Lender having a Tranche B Term Loan Commitment severally agrees to make a loan or loans (each a "Tranche B Term
Loan" and, collectively, the "Tranche B Term Loans") to the US Borrower in Dollars, which Tranche B Term Loans
shall not exceed for any such Lender the Tranche B Term Loan Commitment of such Lender; and 

        (iii)  each
Lender having a Tranche B-1 Term Loan Commitment severally agrees to make a loan or loans (each a
"Tranche B-1 Term Loan" and, collectively, the "Tranche B-1 Term
Loans") to the UK Borrower in Euro, which
Tranche B-1 Term Loans shall not exceed for any such Lender the Tranche B-1 Term Loan Commitment of such Lender. 

        Such
Term Loans (i) shall be made on the Closing Date, (ii) may, in respect of Tranche B Term Loans and at the option of the US Borrower and the UK Borrower, as
applicable, be incurred and maintained as, and/or converted into, ABR Loans or Eurodollar Term Loans, provided that all such Term Loans made by each of
the Lenders pursuant to the same Borrowing shall, unless otherwise specifically provided herein, consist entirely of Term Loans of the same Type, (iii) shall, in respect of Tranche A
Term Loans and Tranche B-1 Term Loans, be incurred and maintained as Eurodollar Term Loans, (iv) may be repaid or prepaid in accordance with the provisions hereof, but once
repaid or prepaid, may not be reborrowed, (v) shall not exceed for any such Lender the Tranche A Term Loan Commitment, Tranche B Term Loan Commitment or Tranche B-1
Term Loan Commitment, as applicable, of such Lender and (vi) shall not exceed in the aggregate the total of all Tranche A Term Loan Commitments, Tranche B Term Loan Commitments or
Tranche B-1 Term Loan Commitments, as applicable. On the Tranche A Term Loan Maturity Date, all Tranche A Terns Loans shall be repaid in full. On the Tranche B
Term Loan Maturity Date, all Tranche B Term Loans shall be repaid in full. On the Tranche B-1 Term Loan Maturity Date, all Tranche B-1 Term Loans shall be
repaid in full. 

        (b)   (i) Subject
to and upon the terms and conditions herein set forth (including Section 2.1(b)(iv) below), each Lender having a Revolving Credit Commitment
severally agrees to make a loan or loans denominated in Dollars (each a "Dollar Revolving Credit Loan" and, collectively, the
"Dollar Revolving Credit Loans" and, together with the Foreign Currency Revolving Credit Loans, the "Revolving Credit  

36

 

 Loans") to the US Borrower or the UK Borrower, as the case may be, which Dollar Revolving Credit Loans (A) shall be made at any time and from time to time on and after
the Closing Date and prior to the Revolving Credit Maturity Date, (B) may, at the option of the US Borrower or the UK Borrower, as the case may be, be incurred and maintained as, and/or
converted into, ABR Loans or Eurodollar Revolving Credit Loans, provided that all Dollar Revolving Credit Loans made by each of the Lenders pursuant to
the same Borrowing shall, unless otherwise specifically provided herein, consist entirely of Dollar Revolving Credit Loans of the same Type, (C) may be repaid and reborrowed in accordance with
the provisions hereof, (D) shall not, for any such Lender at any time, after giving effect thereto and to the application of the proceeds thereof, result in such Lender's Revolving Credit
Exposure at such time exceeding such Lender's Revolving Credit Commitment at such time and (E) shall not, after giving effect thereto and to the application of the proceeds thereof, result at
any time in the aggregate amount of the Lenders' Revolving Credit Exposures at such time exceeding the Total Revolving Credit Commitment then in effect. 

        (ii)   Subject
to and upon the terms and conditions herein set forth (including Section 2.1(b)(iv) below), each Lender having a Revolving Credit Commitment severally
agrees to make a loan or loans denominated in a Foreign Currency (each a "Foreign Currency Revolving Credit Loan" and, collectively, the
"Foreign Currency Revolving Credit Loans") to the US Borrower or the UK Borrower, as the case may be, which Foreign Currency Revolving Credit Loans
(A) shall be made at any time and from time to time on and after the Closing Date and prior to the Revolving Credit Maturity Date, (B) shall be incurred and maintained entirely as
Eurodollar Foreign Currency Revolving Credit Loans, (C) may be repaid and reborrowed in accordance with the provisions hereof, (D) shall not, for any such Lender at any time, after
giving effect thereto and to the application of the proceeds thereof, result in such Lender's Revolving Credit Exposure at such time exceeding such Lender's Revolving Credit Commitment at such time
and (E) shall not, after giving effect thereto and to the application of the proceeds thereof, result at any time in the aggregate amount of the Lenders' Revolving Credit Exposures at such time
exceeding the Total Revolving Credit Commitment then in effect. 

        (iii)  Each
Lender may at its option make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan,  provided that (A) any exercise of such option shall not
affect the obligation of the US Borrower or the UK Borrower, as the case may be, to repay
such Loan and (B) in exercising such option, such Lender shall use its reasonable efforts to minimize any increased costs to the US Borrower or the UK Borrower, as the case may be, resulting
therefrom (which obligation of the Lender shall not require it to take, or refrain from taking, actions that it determines would result in increased costs for which it will not be compensated
hereunder or that it determines would be otherwise disadvantageous to it and in the event of such request for costs for which compensation is provided under this Agreement, the provisions of
Section 3.5 shall apply). On the Revolving Credit Maturity Date, all Revolving Credit Loans shall be repaid in full. 

        (iv)  Notwithstanding
anything to the contrary contained in this Agreement, until such time as the UK Debenture and the Mortgages over any Mortgaged Property located in
Scotland set forth on Schedule 1.1(b) have been executed and delivered to the Administrative Agent, the US Borrower and the UK Borrower agree that the UK Borrower may not borrow any Revolving
Credit Loans. 

        (c)   Subject
to and upon the terms and conditions herein set forth, the Swingline Lender in its individual capacity agrees, at any time and from time to time on and after the
Closing Date and prior to the Swingline Maturity Date, to make a loan or loans (each a "Swingline Loan" and, collectively, the
"Swingline Loans") to the US Borrower in Dollars, which Swingline Loans (i) shall be ABR Loans, (ii) shall have the benefit of the
provisions of Section 2.1(d), (iii) shall not exceed at any time outstanding the Swingline Commitment, (iv) shall not, after giving effect thereto and to the application of the
proceeds thereof, result at any time in the aggregate amount of the Lenders' Revolving Credit Exposures at such time exceeding the Total Revolving Credit Commitment then in effect and (v) may
be repaid and reborrowed in accordance with the provisions hereof. On the Swingline Maturity Date, 

37

 

each
outstanding Swingline Loan shall be repaid in full. The Swingline Lender shall not make any Swingline Loan after receiving a written notice from the US Borrower, the UK Borrower or any Lender
stating that a Default or Event of Default exists and is continuing until such time as the Swingline Lender shall have received written notice of (i) rescission of all such notices from the
party or parties originally delivering such notice or (ii) the waiver of such Default or Event of Default in accordance with the provisions of Section 13.1. 

        (d)   On
any Business Day, the Swingline Lender may, in its sole discretion, give notice to the Lenders that all then-outstanding Swingline Loans shall be funded
with a Borrowing of Revolving Credit Loans, in which case Revolving Credit Loans constituting ABR Loans (each such Borrowing, a "Mandatory Borrowing")
shall be made on the immediately succeeding Business Day by all Lenders pro rata based on each Lender's Revolving Credit Commitment Percentage, and the
proceeds thereof shall be applied directly to the Swingline Lender to repay the Swingline Lender for such outstanding Swingline Loans. Each Lender hereby irrevocably agrees to make such Revolving
Credit Loans upon one Business Day's notice pursuant to each Mandatory Borrowing in the amount and in the manner specified in the preceding sentence and on the date specified to it in writing by the
Swingline Lender notwithstanding (i) that the amount of the Mandatory Borrowing may not comply with the minimum amount for each Borrowing specified in Section 2.2, (ii) whether
any conditions specified in Section 7 are then satisfied, (iii) whether a Default or an Event of Default has occurred and is continuing, (iv) the date of such Mandatory Borrowing
or (v) any reduction in the Total Commitment after any such Swingline Loans were made. In the event that, in the sole judgment of the Swingline Lender, any Mandatory Borrowing cannot for any
reason be made on the date otherwise required above (including as a result of the commencement of a proceeding under the Bankruptcy Code in respect of the Borrower), each Lender hereby agrees that it
shall forthwith purchase from the Swingline Lender (without recourse or warranty) such participation of the outstanding Swingline Loans as shall be necessary to cause the Lenders to share in such
Swingline Loans ratably based upon their respective Revolving Credit Commitment Percentages, provided that all principal and interest payable on such Swingline Loans shall be for the account of the
Swingline Lender until the date the respective participation is purchased and, to the extent attributable to the purchased participation, shall be payable to the Lender purchasing same from and after
such date of purchase. 

        2.2    Minimum Amount of Each Borrowing; Maximum Number of Borrowings.    The aggregate principal amount of each
Borrowing of Term Loans, Revolving Credit Loans or Swingline Loans shall be in a multiple of the Dollar Equivalent of $100,000 and shall not be less than the Minimum Borrowing Amount with respect
thereto (except that Mandatory Borrowings shall be made in the amounts
required by Section 2.1(d)). More than one Borrowing may be incurred on any date, provided that at no time shall there be outstanding more than
20 Borrowings of Eurodollar Loans under this Agreement. 

        2.3    Notice of Borrowing.    (a) The US Borrower (on its own behalf and on behalf of the UK Borrower) shall
give the Administrative Agent at the Administrative Agent's Office (i) prior to 12:00 Noon (Local Time) at least three Business Days' prior written notice (or telephonic notice promptly
confirmed in writing) of the Borrowing of Term Loans if all or any of such Term Loans are to be initially Eurodollar Loans and (ii) prior written notice (or telephonic notice promptly confirmed
in writing) prior to 10:00 a.m. (New York time) on the date of the Borrowing of Term Loans if all such Term Loans are to be ABR Loans. Such notice (together with each notice of a Borrowing of
Revolving Credit Loans pursuant to Section 2.3(b) and each notice of a Borrowing of Swingline Loans pursuant to Section 2.3(c), a "Notice of
Borrowing") shall be irrevocable and shall specify (i) the borrower of the Term Loans, which shall be either the US Borrower or the UK Borrower, (ii) the currency
in which the Borrowing is to be made, which shall be either Dollars or Euro, (iii) the aggregate principal amount of the Term Loans to be made, (iv) the date of the borrowing (which
shall be a Business Day and, in the case of the initial borrowing, shall be the Closing Date) and (v) whether the Term Loans shall consist 

38

 

of
ABR Loans and/or Eurodollar Term Loans and, if the Term Loans are to include Eurodollar Term Loans, the Interest Period to be initially applicable thereto. The Administrative Agent shall promptly
give each Lender written notice (or telephonic notice promptly confirmed in writing) of each proposed Borrowing of Term Loans, of such Lender's proportionate share thereof and of the other matters
covered by the related Notice of Borrowing. 

        (b)   Whenever
the US Borrower or the UK Borrower desires to incur Revolving Credit Loans hereunder (other than Mandatory Borrowings or borrowings to repay Unpaid Drawings),
it shall give the Administrative Agent at the Administrative Agent's Office, c/o The Loan and Agency Services Group, (i) prior to 12:00 Noon (Local Time) at least three Business Days' prior
written notice (or telephonic notice promptly confirmed in writing) of each Borrowing of Eurodollar Revolving Credit Loans and (ii) prior to 12:00 Noon (New York time) at least one Business
Day's prior written notice (or telephonic notice promptly confirmed in writing) of each Borrowing of ABR Loans. Each such Notice of Borrowing, except as otherwise expressly provided in
Section 2.10, shall be irrevocable and shall specify (i) the borrower of the Revolving Credit Loans, which shall be either the US Borrower or the UK Borrower, (ii) the currency in
which the Revolving Credit Loans are to be made, which shall be Dollars or a Foreign Currency, (iii) the aggregate principal amount of the Revolving Credit Loans to be made pursuant to such
Borrowing (which, in the case of a Foreign Currency Borrowing, shall be stated in both the applicable Foreign Currency and the Dollar Equivalent thereof), (iii) the date of Borrowing (which
shall be a Business Day) and (iv) whether the respective Borrowing shall consist of ABR Loans or Eurodollar Revolving Credit Loans and, if Eurodollar Revolving Credit Loans, the Interest Period
to be initially applicable thereto. The Administrative Agent shall promptly give each Lender written notice (or telephonic notice promptly confirmed in writing) of each proposed Borrowing of Revolving
Credit Loans, of such Lender's proportionate share thereof and of the other matters covered by the related Notice of Borrowing. 

        (c)   Whenever
the US Borrower desires to incur Swingline Loans hereunder, it shall give the Administrative Agent written notice (or telephonic notice promptly confirmed in
writing) of each Borrowing of Swingline Loans prior to 2:30 p.m. (New York time) on the date of such Borrowing. Each such notice shall be irrevocable and shall specify (i) the aggregate
principal amount of the Swingline Loans to be made pursuant to such Borrowing and (ii) the date of Borrowing (which shall be a Business Day). The Administrative Agent shall promptly give the
Swingline Lender written notice (or telephonic notice promptly confirmed in writing) of each proposed Borrowing of Swingline Loans and of the other matters covered by the related Notice of Borrowing. 

        (d)   Mandatory
Borrowings shall be made upon the notice specified in Section 2.1(d), with the US Borrower irrevocably agreeing, by its incurrence of any Swingline
Loan, to the making of Mandatory Borrowings as set forth in such Section. 

        (e)   Borrowings
to reimburse Unpaid Drawings shall be made upon the notice specified in Section 3.4(a). 

        (f)    Without
in any way limiting the obligation of the US Borrower or the UK Borrower, as the case may be, to confirm in writing any notice it may give hereunder by
telephone, the Administrative Agent may act prior to receipt of written confirmation without liability upon the basis of such telephonic notice believed by the Administrative Agent in good faith to be
from an Authorized Officer of the US Borrower or the UK Borrower, as the case may be. In each such case, the US Borrower and the UK Borrower each hereby waive the right to dispute the Administrative
Agent's record of the terms of any such telephonic notice. 

        2.4    Disbursement of Funds.    (a) No later than 12:00 Noon (Local Time) on the date specified in each Notice
of Borrowing (including Mandatory Borrowings), each Lender will make available its pro rata portion, if any, of each Borrowing requested to be made on
such date in the manner provided 

39

 

below,
provided that all Swingline Loans shall be made available in the full amount thereof by the Swingline Lender no later than 3:00 p.m. (New
York time) on the date requested. 

        (b)   Each
Lender shall make available all amounts it is to fund under any Borrowing in Dollars or in the applicable Foreign Currency, as the case may be, and in immediately
available funds to the Administrative Agent at the Administrative Agent's Office and the Administrative Agent will (except in the case of Mandatory Borrowings and Borrowings to repay Unpaid Drawings)
make available to (i) the US Borrower by depositing to the US Borrower's account at the Administrative Agent's Office the aggregate of the amounts so made available in Dollars or in the
applicable Foreign Currency, as the case may be, and the type of funds received and (ii) the UK Borrower, by depositing to the UK Borrower's account at the Administrative Agent's Office the
aggregate of the amounts so made available in Dollars or in the applicable Foreign Currency, as the case may be, and the type of funds received. Unless the Administrative Agent shall have been
notified by any Lender prior to the date of any such Borrowing that such Lender does not intend to make available to the Administrative Agent its portion of the Borrowing or Borrowings to be made on
such date, the Administrative Agent may assume that such Lender has made such amount available to the Administrative Agent on such date of Borrowing, and the Administrative Agent, in reliance upon
such assumption, may (in its sole discretion and without any obligation to do so) make available to the US Borrower or the UK Borrower, as the case may be, a corresponding amount. If such
corresponding amount is not in fact made available to the Administrative Agent by such Lender and the Administrative Agent has made available same to the US Borrower or the UK Borrower, as the case
may be, the Administrative Agent shall be entitled to recover such corresponding amount from such Lender. If such Lender does not pay such corresponding amount forthwith upon the Administrative
Agent's demand therefor the Administrative Agent shall promptly notify the US Borrower or the UK Borrower, as the case may be, and the US Borrower or the UK Borrower, as the case may be, shall
immediately pay such corresponding amount to the Administrative Agent. The Administrative Agent shall also be entitled to recover from such Lender or the US Borrower or the UK Borrower, as the case
may be, interest on such corresponding amount in respect of each day from the date such corresponding amount was made available by the Administrative Agent to the US Borrower or the UK Borrower, as
the case may be, to the date such corresponding amount is recovered by the Administrative Agent, at a rate per annum equal to (i) if paid by such Lender, the Federal Funds Effective Rate or
(ii) if paid by the US Borrower or the UK Borrower, as the case may be, the then-applicable rate of interest, calculated in accordance with Section 2.8, for the respective
Loans. 

        (c)   Nothing
in this Section 2.4 shall be deemed to relieve any Lender from its obligation to fulfill its commitments hereunder or to prejudice any rights that the US
Borrower or the UK Borrower, as the case may be, may have against any Lender as a result of any default by such Lender hereunder (it being understood, however, that no Lender shall be responsible for
the failure of any other Lender to fulfill its commitments hereunder). 

        2.5    Repayment of Loans; Evidence of Debt.    (a) The US Borrower shall repay to the Administrative Agent,
for the benefit of the Lenders, (i) on the Tranche B Term Loan Maturity Date, the then-unpaid Tranche B Term Loans, in Dollars. The UK Borrower shall repay to the
Administrative Agent, for the benefit of the Lenders, (i) on the Tranche A Term Loan Maturity Date, the then-unpaid Tranche A Term Loans, in Euro and (ii) on
the Tranche B-1 Term Loan Maturity Date, the then-unpaid Tranche B-1 Term Loans, in Euro. The US Borrower and the UK Borrower, as the case may be,
shall repay to the Administrative Agent in Dollars or the applicable Foreign Currency, as the case may be, for the benefit of the Lenders, on the Revolving Credit Maturity Date, the
then-unpaid Revolving Credit Loans. The US Borrower shall repay to the Administrative Agent in Dollars, for the account of the Swingline Lender, on the Swingline Maturity Date, the
then-unpaid Swingline Loans. 

        (b)   (i) The
UK Borrower shall repay to the Administrative Agent, in Euro, for the benefit of the Lenders of Tranche A Term Loans, on each date set forth below
(each a "Tranche A Repayment Date"), 

40

 

the
principal amount of the Tranche A Term Loans equal to (x) the outstanding principal amount of Tranche A Term Loans immediately after closing on the Closing Date multiplied by
(y) the percentage set forth below opposite such Tranche A Repayment Date (each a "Tranche A Repayment Amount"): 

	Number of Months

From Closing Date,
	 	Tranche A

Repayment Amount
	 
	6	 	2.5	%
	12	 	2.5	%
	18	 	5	%
	24	 	5	%
	30	 	7.5	%
	36	 	7.5	%
	42	 	10	%
	48	 	10	%
	54	 	12.5	%
	60	 	12.5	%
	66	 	12.5	%
	Tranche A Term Loan Maturity Date	 	12.5	%

        (ii)   The
US Borrower shall repay to the Administrative Agent, in Dollars, for the benefit of the Lenders of Tranche B Term Loans, on each date set forth below (each a
"Tranche B Repayment Date"), the principal amount of the Tranche B Term Loans equal to (x) the outstanding principal amount of
Tranche B Term Loans immediately after closing on the Closing Date multiplied by (y) the percentage set forth below opposite such Tranche B Repayment Date (each a
"Tranche B Repayment Amount"): 

	Number of Months

From Closing Date,
	 	Tranche B

Repayment Amount
	 
	6	 	0.5	%
	12	 	0.5	%
	18	 	0.5	%
	24	 	0.5	%
	30	 	0.5	%
	36	 	0.5	%
	42	 	0.5	%
	48	 	0.5	%
	54	 	0.5	%
	60	 	0.5	%
	66	 	0.5	%
	72	 	0.5	%
	78	 	0.5	%
	Tranche B Term Loan Maturity Date	 	93.5	%

        (iii)  The
UK Borrower shall repay to the Administrative Agent, in Dollars, for the benefit of the Lenders of Tranche B-1 Term Loans, on each date set
forth below (each a "Tranche B-1 Repayment Date"), the principal amount of the Tranche B-1 Term Loans equal to
(x) the outstanding principal amount of Tranche B-1 Term Loans immediately after closing on the Closing Date multiplied by (y) the 

41

 

percentage
set forth below opposite such Tranche B-1 Repayment Date (each a "Tranche B-1 Repayment Amount"): 

	Number of Months

From Closing Date,
	 	Tranche B-1

Repayment Amount
	 
	6	 	0.5	%
	12	 	0.5	%
	18	 	0.5	%
	24	 	0.5	%
	30	 	0.5	%
	36	 	0.5	%
	42	 	0.5	%
	48	 	0.5	%
	54	 	0.5	%
	60	 	0.5	%
	66	 	0.5	%
	72	 	0.5	%
	78	 	0.5	%
	Tranche B Term Loan Maturity Date	 	93.5	%

        (c)   Each
Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the US Borrower and the UK Borrower, as the case
may be, to the appropriate lending office of such Lender resulting from each Loan made by such lending office of such Lender from time to time, including the amounts of principal and interest payable
and paid to such lending office of such Lender from time to time under this Agreement. 

        (d)   The
Administrative Agent shall maintain the Register pursuant to Section 14.6(c), and a subaccount for each Lender, in which Register and subaccounts (taken
together) shall be recorded (i) the amount and currency of each Loan made hereunder, whether such Loan is a Term Loan, a Revolving Credit Loan or a Swingline Loan, the Type of each Loan made
and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the US Borrower and the UK Borrower, as the case may
be, to each Lender or the Swingline Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder from the US Borrower and the UK Borrower, as the case may be,
and each Lender's share thereof. 

        (e)   The
entries made in the Register and accounts and subaccounts maintained pursuant to paragraphs (c) and (d) of this Section 2.5 shall, to the extent
permitted by applicable law, be prima facie evidence of the existence and amounts of the obligations of the US Borrower and the UK Borrower therein recorded; provided,
however, that the failure of any Lender or the Administrative Agent to maintain such account, such Register or such subaccount, as applicable, or any error therein, shall not
in any manner affect the obligation of the US Borrower or the UK Borrower to repay (with applicable interest) the Loans made to the US Borrower or the UK Borrower by such Lender in accordance with the
terms of this Agreement. 

        2.6    Conversions and Continuations.    (a) The US Borrower shall have the option on any Business Day to
convert all or a portion equal to at least the Minimum Borrowing Amount of the outstanding principal amount of Tranche B Term Loans or Dollar Revolving Credit Loans of one Type into a Borrowing
or Borrowings of another Type and the US Borrower or the UK Borrower, as the case may be, shall have the option on any Business Day to continue the outstanding principal amount of any Eurodollar Term
Loans or Eurodollar Revolving Credit Loans as Eurodollar Term Loans or Eurodollar Revolving Credit Loans, as the case may be, for an additional Interest Period, provided  that (i) no 

42

 

partial
conversion of Eurodollar Term Loans or Eurodollar Revolving Credit Loans shall reduce the outstanding principal amount of Eurodollar Term Loans or Eurodollar Revolving Credit Loans made
pursuant to a single Borrowing to less than the Minimum Borrowing Amount, (ii) ABR Loans may not be converted into Eurodollar Term Loans or Eurodollar Revolving Credit Loans if a Default or
Event of Default is in existence on the date of the conversion and the Administrative Agent has or the Required Lenders have determined in its or their sole discretion not to permit such conversion,
(iii) Eurodollar Loans may not be continued as Eurodollar Term Loans or Eurodollar Revolving Credit Loans for an additional Interest Period if a Default or Event of Default is in existence on
the date of the proposed continuation and the Administrative Agent has or the Required Lenders have determined in its or their sole discretion not to permit such continuation and
(iv) Borrowings resulting from conversions pursuant to this Section 2.6 shall be limited in number as provided in Section 2.2. Each such conversion or continuation shall be
effected by the US Borrower or the UK Borrower, as the case may be, by giving the Administrative Agent at the Administrative Agent's Office prior to 12:00 Noon (Local Time) at least three Business
Days' (or one Business Day's notice in the case of a conversion into ABR Loans) prior written notice (or telephonic notice promptly confirmed in writing) (each a "Notice of
Conversion or Continuation") specifying the Term Loans or Revolving Credit Loans to be so converted or continued, the Type of Term Loans or Revolving Credit Loans to be
converted or continued into and, if such Term Loans or Revolving Credit Loans are to be converted into or continued as Eurodollar Term Loans or Eurodollar Revolving Credit Loans, the Interest Period
to be initially applicable thereto. The Administrative Agent shall give each Lender notice as promptly as practicable of any such proposed conversion or continuation affecting any of its Term Loans or
Revolving Credit Loans. 

        (b)   If
any Default or Event of Default is in existence at the time of any proposed continuation of any Eurodollar Term Loans or Eurodollar Revolving Credit Loans and the
Administrative Agent has or the Required Lenders have determined in its or their sole discretion not to permit such continuation, such Eurodollar Term Loans or Eurodollar Revolving Credit Loans shall
be automatically converted on the last day of the current Interest Period (i) in respect of Tranche B Term Loans and Dollar Revolving Credit Loans, into ABR Loans, and (ii) in
respect of Tranche A Term Loans, Tranche B-1 Term Loans and Foreign Currency Revolving Credit Loans, into Eurodollar Loans with an Interest Period of one month. If upon the
expiration of any Interest Period in respect of Eurodollar Term Loans or Eurodollar Revolving Credit Loans, the US Borrower or the UK Borrower, as the case may be, has failed to elect a new Interest
Period to be applicable thereto as provided in paragraph (a) above, (i) the US Borrower or the UK Borrower, as the case may be, shall be deemed to have elected to convert such Dollar
Borrowing of Eurodollar Term Loans or Eurodollar Revolving Credit Loans, as the case may be, into a Borrowing of ABR Loans effective as of the expiration date of such current Interest Period and
(ii) the US Borrower or the UK Borrower, as the case may be, shall be deemed to have elected to convert such Foreign Currency Borrowing of Eurodollar Term Loans or Eurodollar Revolving Credit
Loans, as the case may be, into a Borrowing of Eurodollar Loans with an Interest Period of one month effective as of the expiration date of such current Interest Period. 

        2.7    Pro Rata Borrowings.    Each Borrowing of Term Loans under this Agreement shall be granted by the Lenders  pro rata on the
basis of their then-applicable Term Loan Commitments. Each Borrowing of Revolving Credit Loans under this Agreement shall be
granted by the Lenders pro rata on the basis of their then-applicable Revolving Credit Commitments. It is understood that no Lender shall be
responsible for any default by any other Lender in its obligation to make Loans hereunder and that each Lender shall be obligated to make the Loans provided to be made by it hereunder, regardless of
the failure of any other Lender to fulfill its commitments hereunder. 

        2.8    Interest.    (a) The unpaid principal amount of each ABR Loan shall bear interest from the date of the
Borrowing thereof until maturity (whether by acceleration or otherwise) at a rate per annum that shall at all times be the Applicable ABR Margin plus the ABR in effect from time to time. 

43

 

        (b)   The
unpaid principal amount of each Eurodollar Term Loan or Eurodollar Revolving Credit Loan shall bear interest from the date of the Borrowing thereof until maturity
thereof (whether by acceleration or otherwise) at a rate per annum that shall at all times be the Applicable Eurodollar Margin in effect from time to time plus the relevant Eurodollar Rate plus, in
the case of Foreign Currency Loans denominated in Sterling only, any Additional Cost incurred by such Lender in respect of such Sterling Foreign Currency Loans from time to time. 

        (c)   If
all or a portion of (i) the principal amount of any Loan or (ii) any interest payable thereon shall not be paid when due (whether at the stated
maturity, by acceleration or otherwise), such overdue amount shall bear interest at a rate per annum that is (x) in the case of overdue principal, the rate that would otherwise be applicable
thereto plus 2% or (y) in the case of any overdue interest, to the extent permitted by applicable law, the rate described in Section 2.8(a) plus 2% from and including the date of such
non-payment to but excluding the date on which such amount is paid in full (after as well as before judgment). 

        (d)   Interest
on each Loan shall accrue from and including the date of any Borrowing to but excluding the date of any repayment thereof and shall be payable (i) in
respect of each ABR Loan, quarterly in arrears on the last day of each March, June, September and December, (ii) in respect of each Eurodollar Term Loan or Eurodollar Revolving Credit Loan, on
the last day of each Interest Period applicable thereto and, in the case of an Interest Period in excess of three months, on each date occurring at three-month intervals after the first day of such
Interest Period, (iii) in respect of each Loan (except, other than in the case of prepayments, any ABR Loan), on any prepayment (on the amount prepaid), at maturity (whether by acceleration or
otherwise) and, after such maturity, on demand. 

        (e)   All
computations of interest hereunder shall be made in accordance with Section 5.5. 

        (f)    The
Administrative Agent, upon determining the interest rate for any Borrowing of Eurodollar Loans, shall promptly notify the US Borrower (on its own behalf and on
behalf of the UK Borrower) and the relevant Lenders thereof. Each such determination shall, absent clearly demonstrable error, be final and conclusive and binding on all parties hereto. 

        2.9    Interest Periods.    At the time the US Borrower or the UK Borrower, as the case may be, gives a Notice of
Borrowing or Notice of Conversion or Continuation in respect of the making of, or conversion into or continuation as, a Borrowing of Eurodollar Term Loans or Eurodollar Revolving Credit Loans (in the
case of the initial Interest Period applicable thereto) or prior to 10:00 a.m. (Local Time) on the third Business Day prior to the expiration of an Interest Period applicable to a Borrowing of
Eurodollar Term Loans or Eurodollar Revolving Credit Loans, the US Borrower or the UK Borrower, as the case may be, shall have the right to elect by giving the Administrative Agent written notice (or
telephonic notice promptly confirmed in writing) the Interest Period applicable to such Borrowing, which Interest Period shall, at the option of the US Borrower or the UK Borrower, as the case may be,
be a one, two, three, six or (in the case of Revolving Credit Loans, if available to all the Lenders making such loans as determined by such Lenders in good faith based on prevailing market
conditions) a nine or twelve month period, provided that the initial Interest Period may be for a period less than one month if agreed upon by the US
Borrower and the Agents. Notwithstanding anything to the contrary contained above: 

        (a)   the
initial Interest Period for any Borrowing of Eurodollar Term Loans or Eurodollar Revolving Credit Loans shall commence on the date of such Borrowing (including the
date of any conversion from a Borrowing of ABR Loans) and each Interest Period occurring thereafter in respect of such Borrowing shall commence on the day on which the next preceding Interest Period
expires; 

44

   
        (b)   if any Interest Period relating to a Borrowing of Eurodollar Term Loans or Eurodollar Revolving Credit Loans begins on the last Business Day of a calendar month or
begins on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period, such Interest Period shall end on the last Business Day of the calendar
month at the end of such Interest Period; 

        (c)   if
any Interest Period would otherwise expire on a day that is not a Business Day, such Interest Period shall expire on the next succeeding Business Day,  provided that if any Interest Period in respect of
a Eurodollar Term Loan or Eurodollar Revolving Credit Loan would otherwise expire on a day that is
not a Business Day but is a day of the month after which no further Business Day occurs in such month, such Interest Period shall expire on the next preceding Business Day; and 

        (d)   the
US Borrower or the UK Borrower, as the case may be, shall not be entitled to elect any Interest Period in respect of any Eurodollar Term Loan or Eurodollar Revolving
Credit Loan if such Interest Period would extend beyond the applicable Maturity Date of such Loan. 

        2.10    Increased Costs, Illegality, etc.    (a) In the event that (x) in the case of clause (i)
below, the Administrative Agent or (y) in the case of clauses (ii) and (iii) below, any Lender shall have reasonably determined (which determination shall, absent clearly demonstrable
error, be final and conclusive and binding upon all parties hereto): 

        (i)    on
any date for determining the Eurodollar Rate for any Interest Period that (x) deposits in the principal amounts of the Loans comprising such Eurodollar
Borrowing and in the currency in which such Loan is to be denominated are not generally available in the relevant market or (y) by reason of any changes arising on or after the Closing Date
affecting the interbank Eurodollar market, adequate and fair means do not exist for ascertaining the applicable interest rate on the basis provided for in the definition of Eurodollar Rate; or 

        (ii)   at
any time, that such Lender shall incur increased costs or reductions in the amounts received or receivable hereunder with respect to any Eurodollar Loans (other than
any such increase or reduction attributable to taxes) because of (x) any change since the date hereof in any applicable law, governmental rule, regulation, guideline or order (or in the
interpretation or administration thereof and including the introduction of any new law or governmental rule, regulation, guideline or order), such as, for example, without limitation, a change in
official reserve requirements, and/or (y) other circumstances affecting the interbank Eurodollar market or the position of such Lender in such market; or 

        (iii)  at
any time, that the making or continuance of any Eurodollar Loan has become unlawful by compliance by such Lender in good faith with any law, governmental rule,
regulation, guideline or order (or would conflict with any such governmental rule, regulation, guideline or order not having the force of law even though the failure to comply therewith would not be
unlawful), or has become impracticable as a result of a contingency occurring after the date hereof that materially and adversely affects the interbank Eurodollar market; 

then,
and in any such event, such Lender (or the Administrative Agent, in the case of clause (i) above) shall within a reasonable time thereafter give notice (if by telephone, confirmed in
writing) to the US Borrower (on its own behalf and on behalf of the UK Borrower) and to the Administrative Agent of such determination (which notice the Administrative Agent shall promptly transmit to
each of the other Lenders). Thereafter (x) in the case of clause (i) above, Eurodollar Term Loans and Eurodollar Revolving Credit Loans shall no longer be available until such time as
the Administrative Agent notifies the US Borrower (on its own behalf and on behalf of the UK Borrower) and the Lenders that the circumstances giving rise to such notice by the Administrative Agent no
longer exist (which notice the Administrative Agent agrees to give at such time when such circumstances no longer exist), and any Notice of Borrowing or Notice of Conversion given by the US Borrower
or the UK Borrower with 

45

 

respect
to Eurodollar Term Loans or Eurodollar Revolving Credit Loans that have not yet been incurred shall be deemed rescinded by the US Borrower or the UK Borrower, (y) in the case of
clause (ii) above, the US Borrower or the UK Borrower, as the case may be, shall pay to such Lender, promptly after receipt of written demand therefor such additional amounts (in the form of an
increased rate of, or a different method of calculating, interest or otherwise as such Lender in its reasonable discretion shall determine) as shall be required to compensate such Lender for such
increased costs or reductions in amounts receivable hereunder (it being agreed that a written notice as to the additional amounts owed to such Lender, showing in reasonable detail the basis for the
calculation thereof, submitted to the US Borrower or the UK Borrower, as the case may be, by such Lender shall, absent clearly demonstrable error, be final and conclusive and binding upon all parties
hereto) and (z) in the case of clause (iii) above, the US Borrower or the UK Borrower, as the case may be, shall take one of the actions specified in Section 2.10(b) as promptly
as possible and, in any event, within the time period required by law. 

        (b)   At
any time that any Eurodollar Loan is affected by the circumstances described in Section 2.10(a)(ii) or (iii), the US Borrower or the UK Borrower, as the case
may be, may (and in the case of a Eurodollar Loan affected pursuant to Section 2.10(a)(iii) shall) either (x) if the affected Eurodollar Loan is then being made pursuant to a Borrowing,
cancel said Borrowing by giving the Administrative Agent telephonic notice (confirmed promptly in writing) thereof on the same date that the US Borrower or the UK Borrower, as the case may be, was
notified by a Lender pursuant to Section 2.10(a)(ii) or (iii) or (y) if the affected Eurodollar Loan is a Tranche B Term Loan or a Dollar Revolving Credit Loan and is then
outstanding, upon at least three Business Days' notice to the Administrative Agent, require the affected Lender to convert each such Eurodollar Revolving Credit Loan and Eurodollar Term Loan into an
ABR Loan, provided that if more than one Lender is affected at any time, then all affected Lenders must be treated in the same manner pursuant to this Section 2.10(b). 

        (c)   If,
after the date hereof, the adoption of any applicable law, rule or regulation regarding capital adequacy, or any change therein, or any change in the interpretation
or administration thereof by any governmental authority, the National Association of Insurance Commissioners, central bank or comparable agency charged with the interpretation or administration
thereof, or compliance by a Lender or its parent with any request or directive made or adopted after the date hereof regarding capital adequacy (whether or not having the force of law) of any such
authority, association, central bank or comparable agency, has or would have the effect of reducing the rate of return on such Lender's or its parent's capital or assets as a consequence of such
Lender's commitments or obligations hereunder to a level below that which such Lender or its parent could have achieved but for such adoption, effectiveness, change or compliance (taking into
consideration such Lender's or its parent's policies with respect to capital adequacy), then from time to time, promptly after demand by such Lender (with a copy to the Administrative Agent), the US
Borrower or the UK Borrower, as the case may be, shall pay to such Lender such additional amount or amounts as will compensate such Lender or its parent for such reduction, it being understood and
agreed, however, that a Lender shall not be entitled to such compensation as a result of such Lender's compliance with, or pursuant to any request or directive to comply with, any such law, rule or
regulation as in effect on the date hereof. Each Lender, upon determining in good faith that any additional amounts will be payable pursuant to this Section 2.10(c), will give prompt written
notice thereof to the US Borrower (on its own behalf and on behalf of the UK borrower), which notice shall set forth in reasonable detail the basis of the calculation of such additional amounts,
although the failure to give any such notice shall not, subject to Section 2.13, release or diminish any of the US Borrower's or the UK Borrower's, as the case may be, obligations to pay
additional amounts pursuant to this Section 2.10(c) upon receipt of such notice. 

        (d)   Notwithstanding
the foregoing, in the case of Foreign Currency Revolving Credit Loans affected by the circumstances described in Section 2.10(a)(i), as promptly
as practicable but in no event 

46

 

later
than three Business Days after the giving of the required notice by the Administrative Agent with respect to such circumstances, the Administrative Agent (in consultation with the Lenders) shall
negotiate with the US Borrower in good faith in order to ascertain whether a substitute interest rate (a "Substitute Rate") may be agreed upon for the
maintaining of existing Foreign Currency Revolving Credit Loans. If a Substitute Rate is agreed upon by the US Borrower and all the Lenders, such Substitute Rate shall apply. If a Substitute Rate is
not so agreed upon by the US Borrower and all the Lenders within such time, each Lender's Foreign Currency Revolving Credit Loans shall thereafter bear interest at a rate equal to the sum of
(i) the rate certified by such Lender to be its costs of funds (from such sources as it may reasonably select out of those sources then available to it) for such Foreign Currency Revolving
Credit Loans, plus (ii) the Applicable Eurodollar Margin plus (iii), in the case of
Foreign Currency Loans denominated in Sterling only, any Additional Cost incurred by such Lender in respect of such Sterling Foreign Currency Loans from time to time. 

        2.11    Compensation.    If (a) any payment of principal of any Eurodollar Term Loan or Eurodollar Revolving
Credit Loan is made by the US Borrower or the UK Borrower, as the case may be, to or for the account of a Lender other than on the last day of the Interest Period for such Eurodollar Loan as a result
of a payment or conversion pursuant to Section 2.5, 2.6, 2.10, 5.1, 5.2 or 14.7, as a result of acceleration of the maturity of the Loans pursuant to Section 11 or for any other reason,
(b) any
Borrowing of Eurodollar Term Loans or Eurodollar Revolving Credit Loans is not made as a result of a withdrawn Notice of Borrowing, (c) any ABR Loan is not converted into a Eurodollar Term Loan
or Eurodollar Revolving Credit Loan as a result of a withdrawn Notice of Conversion or Continuation, (d) any Eurodollar Loan is not continued as a Eurodollar Term Loan or Eurodollar Revolving
Credit Loan as a result of a withdrawn Notice of Conversion or Continuation or (e) any prepayment of principal of any Eurodollar Term Loan or Eurodollar Revolving Credit Loan is not made as a
result of a withdrawn notice of prepayment pursuant to Section 5.1 or 5.2, the US Borrower or the UK Borrower, as the case may be, shall, after receipt of a written request by such Lender
(which request shall set forth in reasonable detail the basis for requesting such amount), pay to the Administrative Agent for the account of such Lender any amounts required to compensate such Lender
for any additional losses, costs or expenses that such Lender may reasonably incur as a result of such payment, failure to convert, failure to continue or failure to prepay, including any loss, cost
or expense (excluding loss of anticipated profits) actually incurred by reason of the liquidation or reemployment of deposits or other funds acquired by any Lender to fund or maintain such Eurodollar
Loan. 

        2.12    Change of Lending Office.    Each Lender agrees that, upon the occurrence of any event giving rise to the
operation of Section 2.10(a)(ii), 2.10(a)(iii), 2.10(b), 3.5 or 5.4 with respect to such Lender, it will, if requested by the US Borrower or the UK Borrower, as the case may be, use reasonable
efforts (subject to overall policy considerations of such Lender) to designate another lending office for any Loans affected by such event, provided  that such designation is made on such terms that such
Lender and its lending office suffer no economic, legal or regulatory disadvantage, with the object of avoiding the
consequence of the event giving rise to the operation of any such Section. Nothing in this Section 2.12 shall affect or postpone any of the obligations of the US Borrower or the UK Borrower, as
the case may be, or the right of any Lender provided in Section 2.10, 3.5 or 5.4. 

        2.13    Notice of Certain Costs.    Notwithstanding anything in this Agreement to the contrary, to the extent any
notice required by Section 2.10, 2.11, 3.5 or 5.4 is given by any Lender more than 180 days after such Lender has knowledge (or should have had knowledge) of the occurrence of the event
giving rise to the additional cost, reduction in amounts, loss, tax or other additional amounts described in such Sections, such Lender shall not be entitled to compensation under Section 2.10,
2.11, 3.5 or 5.4, as the case may be, for any such amounts incurred or accruing prior to the giving of such notice to the US Borrower or the UK Borrower, as the case may be. 

47

 

        SECTION 3.    Letters of Credit    

        3.1    Letters of Credit.    (a) Subject to and upon the terms and conditions herein set forth, (i) the
US Borrower or the UK Borrower, at any time and from time to time after the Closing Date and prior to the L/C Maturity Date, may request that the Letter of Credit Issuer issue for the account of the
US Borrower or the UK Borrower, as the case may be, a standby letter of credit or letters of credit in Dollars (each a "Dollar Letter of Credit" and,
collectively, the "Dollar Letters of Credit") in such form as may be approved by the Letter of Credit Issuer in its reasonable discretion and
(ii) the US Borrower or
the UK Borrower, at any time and from time to time after the Closing Date and prior to the L/C Maturity Date, may request that the Letter of Credit Issuer issue for the account of the US Borrower or
the UK Borrower, as the case may be, a standby letter of credit or letters of credit in a Foreign Currency (each a "Foreign Currency Letter of Credit"
and, collectively, the "Foreign Currency Letters of Credit" and, together with the Dollar Letters of Credit, the "Letters of
Credit") in such form as may be approved by the Letter of Credit Issuer in its reasonable discretion. 

        (b)   Notwithstanding
the foregoing, (i) no Letter of Credit shall be issued for the account of the UK Borrower until such time as the UK Debenture and the Mortgages
over any Mortgaged Property located in Scotland set forth on Schedule 1.1(b) have been executed and delivered to the Administrative Agent, (ii) no Letter of Credit shall be issued the
Dollar Equivalent of the Stated Amount of which, when added to the Letter of Credit Outstanding at such time, would exceed the Letter of Credit Commitment then in effect; (iii) no Letter of
Credit shall be issued the Dollar Equivalent of the Stated Amount of which would cause the aggregate amount of the Lender's Revolving Credit Exposures at such time to exceed the Total Revolving Credit
Commitment then in effect; (iv) each Letter of Credit shall have an expiration date occurring no later than one year after the date of issuance thereof, unless otherwise agreed upon by the
Administrative Agent and the Letter of Credit Issuer, provided that in no event shall such expiration date occur later than the L/C Maturity Date;
(v) each Letter of Credit shall be denominated in Dollars or in a Foreign Currency; (vi) no Letter of Credit shall be issued if it would be illegal under any applicable law for the
beneficiary of the Letter of Credit to have a Letter of Credit issued in its favor; and (vii) no Letter of Credit shall be issued by the Letter of Credit Issuer after it has received a written
notice from the US Borrower, the UK Borrower or any Lender stating that a Default or Event of Default has occurred and is continuing until such time as the Letter of Credit Issuer shall have received
a written notice of (x) rescission of such notice from the party or parties originally delivering such notice or (y) the waiver of such Default or Event of Default in accordance with the
provisions of Section 14.1. 

        (c)   Upon
at least one Business Day's prior written notice (or telephonic notice promptly confirmed in writing) to the Administrative Agent and the Letter of Credit Issuer
(which notice the Administrative Agent shall promptly transmit to each of the Lenders), the US Borrower (on its own behalf and on behalf of the UK Borrower) shall have the right, on any day,
permanently to terminate or reduce the Letter of Credit Commitment in whole or in part, provided that, after giving effect to such termination or
reduction, the Letter of Credit Outstanding shall not exceed the Letter of Credit Commitment. 

        (d)   The
parties hereto agree that the Existing Letters of Credit shall be deemed Letters of Credit for all purposes under this Agreement, without any further action by the
US Borrower or the UK Borrower. 

        3.2    Letter of Credit Requests.    (a) Whenever the US Borrower or the UK Borrower desires that a Letter of
Credit be issued for its account, it shall give the Administrative Agent and the Letter of Credit Issuer at least five (or such lesser number as may be agreed upon by the Administrative Agent and the
Letter of Credit Issuer) Business Days' written notice thereof. Each notice shall be executed by the US Borrower or the UK Borrower, as the case may be, and shall be in the form of Exhibit M
(each 

48

 

a
"Letter of Credit Request"). The Administrative Agent shall promptly transmit copies of each Letter of Credit Request to each Lender. 

        (b)   The
making of each Letter of Credit Request shall be deemed to be a representation and warranty by the US Borrower or the UK Borrower, as the case may be, that the
Letter of Credit may be issued in accordance with, and will not violate the requirements of, Section 3.1(b). 

        3.3    Letter of Credit Participations.    (a) Immediately upon the issuance by the Letter of Credit Issuer of
any Letter of Credit, the Letter of Credit Issuer shall be deemed to have sold and transferred to each other Lender that has a Revolving Credit Commitment (each such other Lender, in its capacity
under this Section 3.3, an "L/C Participant"), and each such L/C Participant shall be deemed irrevocably and unconditionally to have purchased
and received from the Letter of Credit Issuer, without recourse or warranty, an undivided interest and participation (each an "L/C Participation"), to
the extent of such L/C Participant's Revolving Credit Commitment Percentage in such Letter of Credit, each substitute letter of credit, each drawing made thereunder and the obligations of the US
Borrower or the UK Borrower, as the case may be, under this Agreement with respect thereto, and any security therefor or guaranty pertaining thereto (although Letter of Credit Fees will be paid
directly to the Administrative Agent for the ratable account of the L/C Participants as provided in Section 4.1(b) and the L/C Participants shall have no right to receive any portion of any
Fronting Fees). 

        (b)   In
determining whether to pay under any Letter of Credit, the Letter of Credit Issuer shall have no obligation relative to the L/C Participants other than to confirm
that any documents required to be delivered under such Letter of Credit have been delivered and that they appear to comply on their face with the requirements of such Letter of Credit. Any action
taken or omitted to be taken by the Letter of Credit Issuer under or in connection with any Letter of Credit issued by it, if taken or omitted in the absence of gross negligence or willful misconduct,
shall not create for the Letter of Credit Issuer any resulting liability. 

        (c)   In
the event that the Letter of Credit Issuer makes any payment under any Letter of Credit issued by it and the US Borrower or the UK Borrower, as the case may be, shall
not have repaid such amount in full to the Letter of Credit Issuer pursuant to Section 3.4(a), the Letter of Credit Issuer shall promptly notify the Administrative Agent and each applicable L/C
Participant of such failure, and each such L/C Participant shall promptly and unconditionally pay to the Administrative Agent, for the account of the Letter of Credit Issuer, the amount of such L/C
Participant's Revolving Credit Commitment Percentage of such unreimbursed payment in Dollars or in the applicable Foreign Currency, as the case may be, and in immediately available funds;  provided, however, that no L/C Participant shall be obligated to pay to the Administrative Agent for the account of the Letter of Credit Issuer its
Revolving Credit Commitment Percentage of such unreimbursed amount arising from any wrongful payment made by the Letter of Credit Issuer under a Letter of Credit as a result of acts or omissions
constituting willful misconduct or gross negligence on the part of the Letter of Credit Issuer. If the Letter of Credit Issuer so notifies, prior to 11:00 a.m. (Local Time) on any Business Day,
any L/C Participant required to fund a payment under a Letter of Credit, such L/C Participant shall make available to the Administrative Agent for the account of the Letter of Credit Issuer such L/C
Participant's Revolving Credit Commitment Percentage of the amount of such payment on such Business Day in immediately available funds. If and to the extent such L/C Participant shall not have so made
its Revolving Credit Commitment Percentage of the amount of such payment available to the Administrative Agent for the account of the Letter of Credit Issuer, such L/C Participant agrees to pay to the
Administrative Agent for the account of the Letter of Credit Issuer, forthwith on demand, such amount, together with interest thereon for each day from such date until the date such amount is paid to
the Administrative Agent for the account of the Letter of Credit Issuer at the Federal Funds Effective Rate. The failure of any L/C Participant to make available to the Administrative Agent for the
account of the Letter of Credit Issuer its Revolving Credit Commitment Percentage of any payment under any Letter of Credit shall not relieve any other L/C Participant of its obligation hereunder to 

49

 

make
available to the Administrative Agent for the account of the Letter of Credit Issuer its Revolving Credit Commitment Percentage of any payment under such Letter of Credit on the date required, as
specified above, but no L/C Participant shall be responsible for the failure of any other L/C Participant to make available to the Administrative Agent such other L/C Participant's Revolving Credit
Commitment Percentage of any such payment. 

        (d)   Whenever
the Letter of Credit Issuer receives a payment in respect of an unpaid reimbursement obligation as to which the Administrative Agent has received for the
account of the Letter of Credit Issuer any payments from the L/C Participants pursuant to paragraph (c) above, the Letter of Credit Issuer shall pay to the Administrative Agent and the
Administrative Agent shall promptly pay to each L/C Participant that has paid its Revolving Credit Commitment Percentage of such reimbursement obligation, in Dollars or the applicable Foreign
Currency, as the case may be, and in immediately available funds, an amount equal to such L/C Participant's share (based upon the proportionate aggregate amount originally funded by such L/C
Participant to the aggregate amount funded by all L/C Participants) of the principal amount of such reimbursement obligation and interest thereon accruing after the purchase of the respective L/C
Participations. 

        (e)   The
obligations of the L/C Participants to make payments to the Administrative Agent for the account of the Letter of Credit Issuer with respect to Letters of Credit
shall be irrevocable and not subject to counterclaim, set-off or other defense or any other qualification or exception whatsoever and shall be made in accordance with the terms and
conditions of this Agreement under all circumstances, including under any of the following circumstances: 

        (i)    any
lack of validity or enforceability of this Agreement or any of the other Credit Documents; 

        (ii)   the
existence of any claim, set-off, defense or other right that the US Borrower or the UK Borrower, as the case may be, may have at any time against a
beneficiary named in a Letter of Credit, any transferee of any Letter of Credit (or any Person for whom any such transferee may be acting), the Administrative Agent, the Letter of Credit Issuer, any
Lender or other Person, whether in connection with this Agreement, any Letter of Credit, the transactions contemplated herein or any unrelated transactions (including any underlying transaction
between the US Borrower or the UK Borrower and the beneficiary named in any such Letter of Credit); 

        (iii)  any
draft, certificate or any other document presented under any Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any
statement therein being untrue or inaccurate in any respect; 

        (iv)  the
surrender or impairment of any security for the performance or observance of any of the terms of any of the Credit Documents; or 

        (v)   the
occurrence of any Default or Event of Default; 

provided, however, that no L/C Participant shall be obligated to pay to the Administrative Agent for the account of the Letter of Credit Issuer its
Revolving Credit Commitment Percentage of any unreimbursed amount arising from any wrongful payment made by the Letter of Credit Issuer under a Letter of Credit as a result of acts or omissions
constituting willful misconduct or gross negligence on the part of the Letter of Credit Issuer. 

        3.4    Agreement to Repay Letter of Credit Drawings.    (a) The US Borrower or the UK Borrower, as the case may
be, hereby agrees to reimburse the Letter of Credit Issuer, by making payment to the Administrative Agent in Dollars or in the applicable Foreign Currency, as the case may be, in immediately available
funds at the Administrative Agent's Office, for any payment or disbursement made by the Letter of Credit Issuer under any Letter of Credit (each such amount (including the Dollar Equivalent thereof)
so paid until reimbursed, an "Unpaid Drawing") immediately after, and in 

50

 

any
event on the date of, such payment, with interest on the amount so paid or disbursed by the Letter of Credit Issuer, to the extent not reimbursed prior to 5:00 p.m. (Local Time) on the date
of such payment or disbursement, from and including the date paid or disbursed to but excluding the date the Letter of Credit Issuer is reimbursed therefor at a rate per annum that shall at all times
be the Applicable ABR Margin plus the ABR as in effect from time to time, provided that, notwithstanding
anything contained in this Agreement to the contrary, (i) unless the US Borrower or the UK Borrower, as the case may be, shall have notified the Administrative Agent and the Letter of Credit
Issuer prior to 10:00 a.m. (Local Time) on the date of such drawing that the US Borrower or the UK Borrower, as the case may be, intends to reimburse the Letter of Credit Issuer for the amount
of such drawing with funds other than the proceeds of Loans, the US Borrower or the UK Borrower, as the case may be, shall be deemed to have given a Notice of Borrowing to the Administrative Agent
requesting that the Lenders make Dollar Revolving Credit Loans (which shall initially be ABR Loans) or Foreign Currency Revolving Credit Loans (which shall be Eurodollar Loans with an Interest Period
of one month denominated in Sterling or Euro), as the case may be, on the date on which such drawing is honored in an amount equal to the amount of such drawing and (ii) the Administrative
Agent shall promptly notify each L/C Participant of such drawing and the amount of its Revolving Credit Loan to be made in respect thereof, and (x) in respect of Dollar Letters of Credit, each
L/C Participant shall be irrevocably obligated to make a Dollar Revolving Credit Loan that is an ABR Loan to the US Borrower or the UK Borrower, as the case may be, in the amount of its Revolving
Credit Commitment Percentage of the applicable Unpaid Drawing by 12:00 noon (Local Time) on such Business Day by making the amount of such Dollar Revolving Credit Loan available to the Administrative
Agent at the Administrative Agent's Office and (y) in respect of Foreign Currency Letters of Credit, each L/C Participant shall be irrevocably obligated to make a Foreign Currency Revolving
Credit Loan that is a Eurodollar Loan with an Interest Period of one month to the US Borrower or the UK Borrower, as the case may be, denominated in Sterling in the amount of its Revolving Credit
Commitment Percentage of the applicable Unpaid Drawing by 12:00 noon (London time) on such Business Day by making the amount of such Foreign Currency Revolving Credit Loan available to the
Administrative Agent at the Administrative Agent's Office. Such Revolving Credit Loans or Foreign Currency Revolving Credit Loans, as the case may be, shall be made without regard to the Minimum
Borrowing Amount. The Administrative Agent shall use the proceeds of such Revolving Credit Loans solely for purpose of reimbursing the Letter of Credit Issuer for the related Unpaid Drawing. 

        (b)   The
US Borrower's and the UK Borrower's obligations under this Section 3.4 to reimburse the Letter of Credit Issuer with respect to Unpaid Drawings (including, in
each case, interest thereon) shall be absolute and unconditional under any and all circumstances and irrespective of any set-off, counterclaim or defense to payment that the US Borrower,
the UK Borrower or any other Person may have or have had against the Letter of Credit Issuer, the Administrative Agent or any Lender (including in its capacity as an L/C Participant), including any
defense based upon the failure of any drawing under a Letter of Credit (each a "Drawing") to conform to the terms of the Letter of Credit or any
non-application or misapplication by the beneficiary of the proceeds of such Drawing, provided that the US Borrower or the UK Borrower, as
the case may be, shall not be obligated to reimburse the Letter of Credit Issuer for any wrongful payment made by the Letter of Credit Issuer under the Letter of Credit issued by it as a result of
acts or omissions constituting willful misconduct or gross negligence on the part of the Letter of Credit Issuer. 

        3.5    Increased Costs.    If after the date hereof, the adoption of any applicable law, rule or regulation, or any
change therein, or any change in the interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or administration
thereof, or actual compliance by the Letter of Credit Issuer or any L/C Participant with any request or directive made or adopted after the date hereof (whether or not having the force of law), by any
such authority, central bank or comparable agency shall either (a) impose, modify or make applicable any reserve, deposit, capital adequacy or similar requirement against letters of credit
issued 

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by
the Letter of Credit Issuer, or any L/C Participant's L/C Participation therein, or (b) impose on the Letter of Credit Issuer or any L/C Participant any other conditions affecting its
obligations under this Agreement in respect of Letters of Credit or L/C Participations therein or any Letter of Credit or such L/C Participant's L/C Participation therein, and the result of any of the
foregoing is to increase the cost to the Letter of Credit Issuer or such L/C Participant of issuing, maintaining or participating in any Letter of Credit, or to reduce the amount of any sum received
or receivable by the Letter of Credit Issuer or such L/C Participant hereunder (other than any such increase or reduction attributable to taxes) in respect of Letters of Credit or L/C Participations
therein, then, promptly after receipt of written demand to the US Borrower or the UK Borrower, as the case may be, by the Letter of Credit Issuer or such L/C Participant, as the case may be, (a copy
of which notice shall be sent by the Letter of Credit Issuer or such L/C Participant to the Administrative Agent), the US Borrower or the UK Borrower, as the case may be, shall pay to the Letter of
Credit Issuer or such L/C Participant such additional amount or amounts as will compensate the Letter of Credit Issuer or such L/C Participant for such increased cost or reduction, it being understood
and agreed, however, that the Letter of Credit Issuer or a L/C Participant shall not be entitled to such compensation as a result of such Person's compliance with, or pursuant to any request or
directive to comply with, any such law, rule or regulation as in effect on the date hereof. A certificate submitted to the US Borrower or the UK Borrower, as the case may be, by the Letter of Credit
Issuer or a L/C Participant, as the case may be, (a copy of which certificate shall be sent by the Letter of Credit Issuer or such L/C Participant to the Administrative Agent) setting forth in
reasonable detail the basis for the determination of such additional amount or amounts necessary to compensate the Letter of Credit Issuer or such L/C Participant as aforesaid shall be conclusive and
binding on the US Borrower and the UK Borrower absent clearly demonstrable error. 

        3.6    Successor Letter of Credit Issuer.    The Letter of Credit Issuer may resign as Letter of Credit Issuer upon
60 days' prior written notice to the Administrative Agent, the Lenders and the US Borrower. If the Letter of Credit Issuer shall resign as Letter of Credit Issuer under this Agreement, then the
US Borrower shall appoint from among the Lenders with Revolving Credit Commitments a successor issuer of Letters of Credit, whereupon such successor issuer shall succeed to the rights, powers and
duties of the Letter of Credit Issuer, and the term "Letter of Credit Issuer" shall mean such successor issuer effective upon such appointment. At the time such resignation shall become effective, the
US Borrower and the UK Borrower shall pay to the resigning Letter of Credit Issuer all accrued and unpaid fees pursuant to Sections 4.1(c) and (d). The acceptance of any appointment as the
Letter of Credit Issuer hereunder by a successor Lender shall be evidenced by an agreement entered into by such successor, in a form satisfactory to the US Borrower and the Administrative Agent and,
from and after the effective date of such agreement, such successor Lender shall have all the rights and obligations of the previous Letter of Credit Issuer under this Agreement and the other Credit
Documents. After the resignation of the Letter of Credit Issuer hereunder, the resigning Letter of Credit Issuer shall remain a party hereto and shall continue to have all the rights and obligations
of a Letter of Credit Issuer under this Agreement and the other Loan Documents with respect to Letters of Credit issued by it prior to such resignation, but shall not be required to issue additional
Letters of Credit. After any retiring Letter of Credit Issuer's resignation as Letter of Credit Issuer, the provisions of this Agreement relating to the Letter of Credit Issuer shall inure to its
benefit as to any actions taken or omitted to be taken by it (a) while it was Letter of Credit Issuer under this Agreement or (b) at any time with respect to Letters of Credit issued by
such Letter of Credit Issuer. 

        SECTION 4.    Fees; Commitments    

        4.1    Fees.    (a) The US Borrower (on behalf of itself and the UK Borrower) agrees to pay to the
Administrative Agent in Dollars, for the account of each Lender having a Revolving Credit Commitment (in each case pro rata according to the respective
Revolving Credit Commitments of all such Lenders), a commitment fee for each day from and including the Closing Date to but excluding 

52

 

the
Final Date. Such commitment fee shall be payable in arrears (i) on the last day of each March, June, September and December (for the three-month period (or portion thereof) ended on such
day for which no payment has been received) and (ii) on the Final Date (for the period ended on such date for which no payment has been received pursuant to clause (i) above), and shall
be computed for each day during such period at a rate per annum equal to the Commitment Fee Rate in effect on such day on the Available Commitments in effect on such day. Notwithstanding the
foregoing, the US Borrower shall not be obligated to pay any amounts to any Defaulting Lender pursuant to this Section 4.1. 

        (b)   The
US Borrower (on behalf of itself and the UK Borrower) agrees to pay to the Administrative Agent in Dollars for the account of the Lenders pro
rata on the basis of their respective Letter of Credit Exposure, a fee in respect of each Letter of Credit (the "Letter of Credit
Fee"), for the period from and including the date of issuance of such Letter of Credit to but excluding the termination date of such Letter of Credit computed at the per annum
rate for each day equal to the Applicable Eurodollar Margin for Revolving Credit Loans minus 0.125% per annum on the average daily Stated Amount of such Letter of Credit. Such Letter of Credit Fees
shall be due and payable quarterly in arrears on the last day of each March, June, September and December and on the date upon which the Total Revolving Credit Commitment terminates and the Letter of
Credit Outstandings shall have been reduced to zero. 

        (c)   The
US Borrower (on behalf of itself and the UK Borrower) agrees to pay to the Administrative Agent in Dollars for the account of the Letter of Credit Issuer a fee in
respect of each Letter of Credit issued by it (the "Fronting Fee"), for the period from and including the date of issuance of such Letter of Credit to
but excluding the termination date of such Letter of Credit, computed at the rate for each day equal to 0.125% per annum on the average daily Stated Amount of such Letter of Credit. Such Fronting Fees
shall be due and payable quarterly in arrears on the last day of each March, June, September and December and on the date upon which the Total Revolving Credit Commitment terminates and the Letter of
Credit Outstandings shall have been reduced to zero. 

        (d)   The
US Borrower (on behalf of itself and the UK Borrower) agrees to pay directly to the Letter of Credit Issuer in Dollars upon each issuance of, drawing under, and/or
amendment of, a Letter of Credit issued by it such amount as the Letter of Credit Issuer and the US Borrower shall have agreed upon for issuances of, drawings under or amendments of, letters of credit
issued by it. 

        4.2    Voluntary Reduction of Revolving Credit Commitments.    Upon at least one Business Day's prior written notice
(or telephonic notice promptly confirmed in writing) to the Administrative Agent at the Administrative Agent's Office (which notice the Administrative Agent shall promptly transmit to each of the
Lenders), the US Borrower (on behalf of itself and the UK Borrower) shall have the right, without premium or penalty, on any day, permanently to terminate or reduce the Revolving Credit Commitments
and/or the Foreign Currency Revolving Commitments in whole or in part, provided that (a) any such reduction shall apply proportionately and
permanently to reduce the Revolving Credit Commitment or the Foreign Currency Revolving Commitment, as the case may be, of each of the Lenders, (b) any partial reduction pursuant to this
Section 4.2 shall be in the amount of at least the Dollar Equivalent of $1,000,000 and (c) after giving effect to such termination or reduction and to any prepayments of the Loans made
on the date thereof in accordance with this Agreement, the aggregate amount of the Lenders' Revolving Credit Exposures shall not exceed the Total Revolving Credit Commitment. 

        4.3    Mandatory Termination of Commitments.    (a) The Total Term Loan Commitments shall terminate at
5:00 p.m. (New York time) on the Closing Date. 

        (b)   The
Total Revolving Credit Commitment, including the Total Foreign Currency Revolving Commitment, shall terminate at 5:00 p.m. (New York time) on the Revolving
Credit Maturity Date. 

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        (c)   The
Swingline Commitment shall terminate at 5:00 p.m. (New York time) on the Swingline Maturity Date. 

        SECTION 5.    Payments    

        5.1    Voluntary Prepayments.    The US Borrower and the UK Borrower shall have the right to prepay Term Loans,
Revolving Credit Loans and Swingline Loans, without premium or penalty, in whole or in part from time to time on the following terms and conditions: (a) the US Borrower (on its own behalf and
on behalf of the UK Borrower) shall give the Administrative Agent at the Administrative Agent's Office written notice (or telephonic notice promptly confirmed in writing) of its intent to make such
prepayment, the amount of such prepayment and (in the case of Eurodollar Term Loans and Eurodollar Revolving Credit Loans) the specific Borrowing(s) pursuant to which made, which notice shall be given
by the US Borrower no later than (i) in the case of Term Loans or Revolving Credit Loans, 10:00 a.m. (Local Time) one Business Day prior to, or (ii) in the case of Swingline
Loans, 10:00 a.m. (Local Time) on, the date of such prepayment and shall promptly be transmitted by the Administrative Agent to each of the Lenders or the Swingline Lender, as the case may be;
(b) each partial prepayment of any Borrowing of Term Loans or Revolving Credit Loans shall be in a multiple of the Dollar Equivalent of $100,000 and in an aggregate principal amount of the
Dollar Equivalent of at least $1,000,000 and each partial prepayment of Swingline Loans shall be in a multiple of the Dollar Equivalent of $100,000 and in an aggregate principal amount of at least the
Dollar Equivalent of $100,000, provided that no partial prepayment of Eurodollar Term Loans or Eurodollar Revolving Credit Loans made pursuant to a
single Borrowing shall reduce the outstanding Eurodollar Term Loans or Eurodollar Revolving Credit Loans made pursuant to such Borrowing to an amount less than the Minimum Borrowing Amount for
Eurodollar Term Loans or Eurodollar Revolving Credit Loans; and (c) any prepayment of Eurodollar Term Loans or Eurodollar Revolving Credit Loans pursuant to this Section 5.1 on any day
other than the last day of an Interest Period applicable thereto shall be subject to compliance by the US Borrower or the UK Borrower, as the case may be, with the applicable provisions of
Section 2.11. Each prepayment in respect of any tranche of Term Loans pursuant to this Section 5.1 shall be (a) applied to Tranche A Term Loans, Tranche B Term Loans
or Tranche B-1 Term Loans in such manner as the US Borrower (on its own behalf and on behalf of the UK Borrower) may determine and (b) applied to reduce Tranche A
Repayment Amounts, Tranche B Repayment Amounts or Tranche B-1 Repayment Amounts in such order as the US Borrower (on its own behalf and on behalf of the UK Borrower) may
determine. At the US Borrower's election (on its own behalf and on behalf of the UK Borrower) in connection with any prepayment pursuant to this Section 5.1, such prepayment shall not be
applied to any Term Loan or Revolving Credit Loan of a Defaulting Lender. 

        5.2    Mandatory Prepayments.    (a)    Term Loan
Prepayments.    (i) On each occasion that a Prepayment Event occurs, the US Borrower and the UK Borrower shall, within five Business Days after the occurrence
of such Prepayment Event, offer to prepay, in accordance with paragraph (c) below, the principal amount of Term Loans in an amount equal to 100% of the Net Cash Proceeds from such Prepayment
Event, provided that, at the option of the US Borrower, the Net Cash Proceeds from any transaction permitted by Section 10.4(e) (including
pursuant to any securitization) may be applied to repay Revolving Credit Loans, which repayment shall automatically result in the reduction of the Revolving Credit Commitment of each Lender by an
amount equal to the amount of the Revolving Credit Loans prepaid to such Lender. 

        (ii)   Not
later than the date that is six months after the last day of any fiscal year (commencing with the fiscal year ending December 31, 2003), if the Consolidated
Total Debt to Consolidated EBITDA Ratio as of the end of such fiscal year is greater than or equal to 3.50 to 1.00, the US Borrower and the UK Borrower shall offer to prepay, in accordance with
paragraph (c) below, the principal of Term Loans in an amount equal to (x) 50% of Excess Cash Flow for such fiscal year, minus (y) the amount of any such Excess Cash Flow that the
US Borrower has, after the end of such 

54

 

fiscal
year and prior to such date, reinvested in the business of the US Borrower or any of its Subsidiaries (subject to Section 9.14) and minus  (z) the principal amount of Term Loans voluntarily
prepaid pursuant to Section 5.1 during such fiscal year. 

        (b)    Aggregate Revolving Credit Outstandings.    If on any date the aggregate amount of the Lenders' Revolving
Credit Exposures (all the foregoing, collectively, the "Aggregate Revolving Credit Outstandings") exceeds 103% of the Total Revolving Credit Commitment
as then in effect, the US Borrower and/or the UK Borrower, as the case may be, shall forthwith repay on such date the principal amount of Swingline Loans and, after all Swingline Loans have been paid
in full, Revolving Credit Loans in an amount equal to such excess. If, after giving effect to the prepayment of all outstanding Swingline Loans and Revolving Credit Loans, the Aggregate Revolving
Credit Outstandings exceed the Total Revolving Credit Commitment then in effect, the US Borrower and/or the UK Borrower, as the case may be, shall pay to the Administrative Agent an amount in cash
equal to such excess and the Administrative Agent shall hold such payment for the benefit of the Lenders as security for the obligations of the US Borrower and the UK Borrower hereunder (including
obligations in respect of Letter of Credit Outstandings) pursuant to a cash collateral agreement to be entered into in form and substance satisfactory to the Administrative Agent (which shall permit
certain investments in Permitted Investments satisfactory to the Administrative Agent, until the proceeds are applied to the secured obligations). 

        (c)    Application to Repayment Amounts.    Each prepayment of Term Loans required by Section 5.2(a) shall be
initially allocated pro rata among the Tranche A Term Loans, the Tranche B Term Loans and the Tranche B-1 Term Loans
and shall be applied to reduce the applicable Repayment Amounts in such order as the US Borrower (on its own behalf and on behalf of the UK Borrower) may determine up to an amount equal to the
aggregate amount of the applicable Repayment Amounts required to be made by the US Borrower or the UK Borrower pursuant to Section 2.5(b)(i), (ii), (iii), (iv) or (v), as the case may be,
during the two year period immediately following the date of the
prepayment (such amount being, the "Amortization Amount"), provided that to the extent that the amount
of the prepayment exceeds the Amortization Amount, such excess shall be applied ratably to reduce the then remaining Repayment Amounts under such Term Facility. With respect to each such prepayment,
(i) the US Borrower (on its own behalf and on behalf of the UK Borrower) will, not later than the date specified in Section 5.2(a) for offering to make such prepayment, give the
Administrative Agent telephonic notice (promptly confirmed in writing) requesting that the Administrative Agent provide notice of such prepayment to each Term Loan Lender, (ii) each
Tranche B Term Loan Lender and each Tranche B-1 Term Loan Lender will have the right to refuse any such prepayment by giving written notice of such refusal to the US Borrower
within fifteen Business Days after such Lender's receipt of notice from the Administrative Agent of such prepayment (and the US Borrower and the UK Borrower shall not prepay any such Tranche B
Term Loans or Tranche B-1 Term Loans until the date that is specified in the immediately following clause), (iii) the US Borrower and the UK Borrower will make all such
prepayments not so refused upon the earlier of (x) such fifteenth Business Day and (y) such time as the US Borrower has received notice from each Lender that it consents to or refuses
such prepayment and (iv) any prepayment so refused may be retained by the US Borrower or the UK Borrower, as the case may be, provided that any
prepayment so refused that relates to Net Cash Proceeds from (x) a PIK Proceeds Prepayment Event or (y) a Debt Incurrence Prepayment Event in respect of the issuance of Permitted
Additional Subordinated Notes shall be allocated to the then outstanding Tranche A Term Loans and shall be applied as set forth above in this paragraph (c). 

        (d)    Application to Term Loans.    With respect to each prepayment of Term Loans required by Section 5.2(a),
the US Borrower (on its own behalf and on behalf of the UK Borrower) may designate the Types of Loans that are to be prepaid and the specific Borrowing(s) pursuant to which made,  provided that
(i) Eurodollar Term Loans may be designated for prepayment pursuant to this Section 5.2 only on the last day of an Interest
Period applicable thereto unless all Eurodollar Term Loans with 

55

 

Interest
Periods ending on such date of required prepayment and all Term Loans that are ABR Loans have been paid in full; and (ii) if any prepayment of Eurodollar Term Loans made pursuant to a
single Borrowing shall reduce the outstanding Term Loans made pursuant to such Borrowing to an amount less than the Minimum Borrowing Amount for Eurodollar Term Loans, such Borrowing shall immediately
be converted into ABR Loans. In the absence of a designation by the US Borrower as described in the preceding sentence, the Administrative Agent shall, subject to the above, make such designation in
its reasonable discretion with a view, but no obligation, to minimize breakage costs owing under Section 2.11. 

        (e)    Application to Revolving Credit Loans.    With respect to each prepayment of Revolving Credit Loans elected by
the US Borrower pursuant to Section 5.2(a) or required by Section 5.2(b), the US Borrower (on its own behalf and on behalf of the UK Borrower) may designate (i) the Types of Loans
that are to be prepaid and the specific Borrowing(s) pursuant to which made and (ii) the Dollar Revolving Credit Loans or Foreign Currency Revolving Credit Loans to be prepaid,  provided that
(w) Eurodollar Revolving Credit Loans may be designated for prepayment pursuant to this Section 5.2 only on the last day of
an Interest Period applicable thereto unless all Eurodollar Revolving Credit Loans with Interest Periods ending on such date of required prepayment and all ABR Loans have been paid in full;
(x) if any prepayment by the US Borrower of Eurodollar Revolving Credit Loans made pursuant to a single Borrowing shall reduce the outstanding Dollar Equivalent of the Revolving Credit Loans
made
pursuant to such Borrowing to an amount less than the Minimum Borrowing Amount for Eurodollar Revolving Credit Loans, such Borrowing shall immediately be converted into ABR Loans; (y) each
prepayment of any Loans made pursuant to a Borrowing shall be applied pro rata among such Loans; and (z) notwithstanding the provisions of the
preceding clause (y), no prepayment made pursuant to Section 5.2(a) or Section 5.2(b) of Revolving Credit Loans shall be applied to the Revolving Credit Loans of any Defaulting
Lender. In the absence of a designation by the US Borrower as described in the preceding sentence, the Administrative Agent shall, subject to the above, make such designation in its reasonable
discretion with a view, but no obligation, to minimize breakage costs owing under Section 2.11. 

        (f)    Eurodollar Interest Periods.    In lieu of making any payment pursuant to this Section 5.2 in respect of
any Eurodollar Loan other than on the last day of the Interest Period therefor so long as no Default or Event of Default shall have occurred and be continuing, the US Borrower or the UK Borrower, as
the case may be, at its option may deposit with the Administrative Agent an amount equal to the amount of the Eurodollar Loan to be prepaid and such Eurodollar Loan shall be repaid on the last day of
the Interest Period therefor in the required amount. Such deposit shall be held by the Administrative Agent in a corporate time deposit account established on terms reasonably satisfactory to the
Administrative Agent, earning interest at the then-customary rate for accounts of such type. Such deposit shall constitute cash collateral for the Obligations,  provided that the US Borrower or the UK
Borrower, as the case may be, may at any time direct that such deposit be applied to make the applicable payment
required pursuant to this Section 5.2. 

        (g)    Minimum Amount.    No prepayment shall be required pursuant to Section 5.2(a)(i) unless and until the
amount at any time of Net Cash Proceeds from Prepayment Events required to be applied at or prior to such time pursuant to such Section and not yet applied at or prior to such time to prepay Term
Loans pursuant to such Section exceeds the Dollar Equivalent of $15,000,000 in the aggregate. 

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        (h)    Foreign Asset Sales.    Notwithstanding any other provisions of this Section 5.2, (i) to the
extent that any of or all the Net Cash Proceeds of any asset sale by a Restricted Foreign Subsidiary giving rise to an Asset Sale Prepayment Event (a "Foreign Asset
Sale") are prohibited or delayed by applicable local law from being repatriated to the United States or the United Kingdom, the portion of such Net Cash Proceeds so affected
will not be required to be applied to repay Term Loans at the times provided in this Section 5.2 but may be retained by the applicable Restricted Foreign Subsidiary so long, but only so long,
as the applicable local law will not permit repatriation to the United States or the United Kingdom (the US Borrower and the UK Borrower hereby agreeing to cause the applicable Restricted Foreign
Subsidiary to promptly take all actions required by the applicable local law to permit such repatriation), and once such repatriation of any of such affected Net Cash Proceeds is permitted under the
applicable local law, such repatriation will be immediately effected and such repatriated Net Cash Proceeds will be promptly (and in any event not later than two Business Days after such repatriation)
applied (net of additional taxes payable or reserved against as a result thereof) to the repayment of the Term Loans pursuant to this Section 5.2 and (ii) to the extent that the US
Borrower (on its own behalf and on behalf of the UK Borrower) has determined in good faith that repatriation of any of or all the Net Cash Proceeds of any Foreign Asset Sale would have a material
adverse tax cost consequence with respect to such Net Cash Proceeds, the Net Cash Proceeds so affected may be retained by the applicable Restricted Foreign Subsidiary, provided  that, in the case of this
clause (ii), on or before the date on which any Net Cash Proceeds so retained would otherwise have been required to be applied to reinvestments
or prepayments pursuant to Section 5.2(a), (x) the US Borrower or the UK Borrower, as the case may be, applies an amount equal to such Net Cash Proceeds to such reinvestments or
prepayments as if such Net Cash Proceeds had been received by the US Borrower or the UK Borrower, as the case may be, rather than such Restricted Foreign Subsidiary, less the amount of additional
taxes that would have been payable or reserved against if such Net Cash Proceeds had been repatriated (or, if less, the Net Cash Proceeds that would be calculated if received by such Foreign
Subsidiary) or (y) such Net Cash Proceeds are applied to the repayment of Indebtedness of a Restricted Foreign Subsidiary. 

        5.3    Method and Place of Payment.    (a) Except as otherwise specifically provided herein, all payments under
this Agreement shall be made by the US Borrower or the UK Borrower, without set-off, counterclaim or deduction of any kind, to the Administrative Agent for the ratable account of the
Lenders entitled thereto, the Letter of Credit Issuer or the Swingline Lender, as the case may be, not later than 12:00 Noon (Local Time) on the date when due and shall be made (i) in the case
of amounts payable in Dollars, in immediately available funds at the Administrative Agent's Office and (ii) in the case of amounts payable in a Foreign Currency, in immediately available funds
at the Administrative Agent's Office or at such other office as the Administrative Agent shall specify for such purpose by notice to the Borrower, it being understood that written or facsimile notice
by the US Borrower or the UK Borrower, as the case may be, to the Administrative Agent to make a payment from the funds in the US Borrower's or the UK Borrower's, as the case may be, account at the
Administrative Agent's Office shall constitute the making of such payment to the extent of such funds held in such account. All payments under each Credit Document (whether of principal, interest or
otherwise) shall be made (i) in the case of the principal of and interest on each Loan, in the currency in which such Loan is denominated, (ii) in the case of reimbursement obligations
in respect of Letters of Credit, in the currency in which such Letter of Credit is denominated, (iii) in the case of any indemnification or
expense reimbursement payment, in Dollars or Euro, as requested by the Person entitled to receive such payment, or (iv) in all other cases, in Dollars, in each case except as otherwise
expressly provided herein. The Administrative Agent will thereafter cause to be distributed on the same day (if payment was actually received by the Administrative Agent prior to 2:00 p.m.
(Local Time) on such day) like funds relating to the payment of principal or interest or Fees ratably to the Lenders entitled thereto. 

        (b)   Any
payments under this Agreement that are made later than 2:00 p.m. (Local Time) shall be deemed to have been made on the next succeeding Business Day. Whenever
any payment to be made 

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hereunder
shall be stated to be due on a day that is not a Business Day, the due date thereof shall be extended to the next succeeding Business Day and, with respect to payments of principal, interest
shall be payable during such extension at the applicable rate in effect immediately prior to such extension. 

        5.4    Net Payments.    (a) All payments made by the US Borrower and the UK Borrower under this Agreement shall
be made free and clear of, and without deduction or withholding for or on account of, any current or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or
withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority, excluding (i) net income taxes and franchise taxes (imposed in lieu of net income
taxes) imposed on the Administrative Agent or any Lender and (ii) any taxes imposed on the Administrative Agent or any Lender as a result of a current or former connection between the
Administrative Agent or such Lender and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing authority thereof or therein (other than any such
connection arising solely from the Administrative Agent or such Lender having executed, delivered or performed its obligations or received a payment under, or enforced, this Agreement). If any such
non-excluded taxes, levies, imposts, duties, charges, fees, deductions or withholdings ("Non-Excluded Taxes") are required to be
withheld from any amounts payable to the Administrative Agent or any Lender hereunder, the amounts so payable to the Administrative Agent or such Lender shall be increased to the extent necessary to
yield to the Administrative Agent or such Lender (after payment of all Non-Excluded Taxes) interest or any such other amounts payable hereunder at the rates or in the amounts specified in
this Agreement; provided, however, that the US Borrower shall not be required to increase any such amounts payable to any Lender that is not organized
under the laws of the United States of America or a state thereof (a "Non-U.S. Lender") if such Lender fails to comply with the requirements
of paragraph (b) of this Section 5.4. Whenever any Non-Excluded Taxes are payable by the US Borrower or the UK Borrower, as the case may be, as promptly as possible
thereafter such US Borrower or UK Borrower shall send to the Administrative Agent for its own account or for the account of such Lender, as the case may be, a certified copy of an original official
receipt (or other evidence acceptable to such Lender, acting reasonably) received by such US Borrower or UK Borrower showing payment thereof. If the US Borrower or the UK Borrower, as the case may be,
fails to pay any Non-Excluded Taxes when due to the appropriate taxing authority or fails to remit to the Administrative Agent the required receipts or other required documentary evidence,
such US Borrower or UK Borrower shall indemnify the Administrative Agent and the Lenders for any incremental taxes, interest, costs or penalties that may become payable by the Administrative Agent or
any Lender as a result of any such failure. The agreements in this Section 5.4(a) shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable
hereunder. 

        (b)   Each
Non-U.S. Lender shall: 

        (i)    deliver
to the US Borrower and the Administrative Agent two copies of either (x) in the case of 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", United States Internal Revenue Service Form W-8BEN (together with
a certificate representing that such Non-U.S. Lender is not a bank for purposes of Section 881(c) of the Code, is not a 10-percent shareholder (within the meaning of
Section 871(h)(3)(B) of the Code) of the US Borrower and is not a controlled foreign corporation related to the US Borrower (within the meaning of Section 864(d)(4) of the Code)), or
(y) Internal Revenue Service Form W-8BEN or Form W-8ECI, 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 US Borrower under this Agreement; 

        (ii)   deliver
to the US Borrower and the Administrative Agent two further copies of any such form or certification (or any applicable successor form) on or before the date
that any such form or certification expires or becomes obsolete and after the occurrence of any event requiring a change in the most recent form previously delivered by it to the US Borrower; and 

58

 

        (iii)  obtain
such extensions of time for filing and complete such forms or certifications as may reasonably be requested by the US Borrower or the Administrative Agent; 

unless
in any such case any change in treaty, law or regulation has occurred prior to the date on which any such delivery would otherwise be required that renders any such form inapplicable or would
prevent such Lender from duly completing and delivering any such form with respect to it and such Lender so advises the US Borrower and the Administrative Agent. Each Person that shall become a
Participant pursuant to Section 14.6 or a Lender pursuant to Section 14.6 shall, upon the effectiveness of the related transfer, be required to provide all the forms and statements
required pursuant to this Section 5.4(b), provided that in the case of a Participant such Participant shall furnish all such required forms and
statements to the Lender from which the related participation shall have been purchased. 

        (c)   The
US Borrower shall not be required to indemnify any Non-U.S. Lender, or to pay any additional amounts to any Non-U.S. Lender, in respect of
U.S. Federal withholding tax pursuant to paragraph (a) above to the extent that (i) the obligation to withhold amounts with respect to U.S. Federal withholding tax existed on the date
such Non-U.S. Lender became a party to this Agreement (or, in the case of a Participant that is not organized under the laws of the United States of America or a state thereof (a
"Non-U.S. Participant"), on the date such Non-U.S. Participant became a Participant hereunder);  provided, however, that this clause (i) shall not
apply to the extent that (x) the indemnity payments 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 person making the assignment, participation or
transfer to such Lender (or Participant) would have been entitled to receive in the absence of such assignment, participation or transfer, or (y) such assignment, participation or transfer had
been requested by the US Borrower or the UK Borrower, (ii) the obligation to pay such additional amounts would not have arisen but for a failure by such Non-U.S. Lender or
Non-U.S. Participant to comply with the provisions of paragraph (b) above or (iii) any of the representations or certifications made by a Non-U.S. Lender or
Non-U.S. Participant pursuant to paragraph (b) above are incorrect at the time a payment hereunder is made, other than by reason of any change in treaty, law or regulation having
effect after the date such representations or certifications were made. 

        (d)   Where
a Lender is not, or has ceased to be, an Eligible Lender on the due date for payment of any sum under this Agreement, the increased amount due under
Section 5.4(a) hereof shall be limited to the amount the UK Borrower would have had to pay if: 

        (i)    where
that Lender had been a UK Lender before ceasing to be an Eligible Lender, the Lender had remained a UK Lender; 

        (ii)   where
that Lender had been a Treaty Lender before ceasing to be an Eligible Lender, the Lender had remained a Treaty Lender and an appropriate direction had been given
by the United Kingdom Inland Revenue authorizing the UK Borrower to make payment with deduction of tax at a reduced rate in accordance with the provisions of the relevant double taxation agreement; or 

        (iii)  where
that Lender had not been a Eligible Lender, the Lender had been a UK Lender; 

except
to the extent that the UK Borrower would have been required to make a deduction or withholding on account of tax regardless of whether such Lender is an Eligible Lender. 

This
Section 5.4(d) shall not apply in circumstances where a Lender ceases to be an Eligible Lender due to a change in the Requirement of Law or double taxation treaty or in its application or
interpretation, in each case taking effect after the date of this Agreement. 

        (e)   If
the US Borrower or the UK Borrower determines in good faith that a reasonable basis exists for contesting any taxes for which indemnification has been demanded
hereunder, the relevant Lender or the Administrative Agent, as applicable, shall cooperate with such US Borrower or UK Borrower in challenging such taxes at such US Borrower's or UK Borrower's expense
if so requested by 

59

 

such
US Borrower or UK Borrower. If any Lender or the Administrative Agent, as applicable, receives a refund of a tax for which a payment has been made by the US Borrower or the UK Borrower pursuant
to this Agreement, which refund in the good faith judgment of such Lender or Administrative Agent, as the case may be, is attributable to such payment made by such US Borrower or UK Borrower, then the
Lender or the Administrative Agent, as the case may be, shall reimburse such US Borrower or UK Borrower for such amount (together with any interest received thereon) as the Lender or Administrative
Agent, as the case may be, determines to be the proportion of the refund as will leave it, after such reimbursement, in no better or worse position than it would have been in if the payment had not
been required. A Lender or Administrative Agent shall claim any refund that it determines is available to it, unless it concludes in its reasonable discretion that it would be adversely affected by
making such a claim. Neither the Lender nor the Administrative Agent shall be obliged to disclose any information regarding its tax affairs or computations to the US Borrower or the UK Borrower in
connection with this paragraph (d) or any other provision of this Section 5.4. 

        (f)    Each
Lender represents and agrees that, on the date hereof and at all times during the term of this Agreement, it is not and will not be a conduit entity participating
in a conduit financing arrangement (as defined in Section 7701(1) of the Code and the regulations thereunder) with respect to the Borrowings hereunder unless the US Borrower has consented to
such arrangement prior thereto. 

        5.5    Computations of Interest and Fees.    (a) Interest on Eurodollar Loans and, except as provided in the
next succeeding sentence, ABR Loans shall be calculated on the basis of a 360-day year for the actual days elapsed. Interest on (i) Foreign Currency Revolving Credit Loans
denominated in Sterling and (ii) ABR Loans in respect of which the rate of interest is calculated on the basis of the Prime Rate and interest on overdue interest shall be calculated on the
basis of a 365- (or 366-, as the case may be) day year for the actual days elapsed. 

        (b)   Fees
and Letter of Credit Outstanding shall be calculated on the basis of a 365- (or 366-, as the case may be) day year for the actual days
elapsed. 

        SECTION 6.    Conditions Precedent to Initial Borrowing    

        The
initial Borrowing under this Agreement is subject to the satisfaction of the following conditions precedent: 

        6.1    Credit Documents.    The Administrative Agent shall have received (a) this Agreement, executed and
delivered by a duly authorized officer of each of the Parent Companies, Holdings, the US Borrower, the UK Borrower and each Lender; 

        (b)   the
Guarantee, executed and delivered by a duly authorized officer of each Guarantor; 

        (c)   the
Pledge Agreement, executed and delivered by a duly authorized officer of each pledgor party thereto; 

        (d)   the
Security Agreement, executed and delivered by a duly authorized officer of each grantor party thereto; 

        (e)   a
Mortgage in respect of each Mortgaged Property to be Mortgaged on the Closing Date, executed and delivered by a duly authorized officer of each mortgagor party
thereto; 

        (f)    the
UK Guarantee, executed and delivered by a duly authorized officer of the US Borrower; 

        (g)   the
UK Pledge Agreements, executed and delivered by a duly authorized officer of the US Borrower; 

        (h)   the
German Abstract Acknowledgements of Indebtedness and the Amendment to the Existing German Abstract Acknowledgment of Indebtedness, executed and delivered by a duly
authorized officer of each guarantor party thereto; 

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        (i)    the
German Assignment of Claims, executed and delivered by a duly authorized officer of each guarantor party thereto; 

        (j)    the
German Guarantee, executed and delivered by a duly authorized officer of each guarantor party thereto; 

        (k)   the
German Pledge Agreement, executed and delivered by a duly authorized officer of each pledgor party thereto; 

        (l)    the
German Negative Pledge Agreement, executed and delivered by a duly authorized officer of each grantor party thereto; 

        (m)  the
Canadian Guarantee, executed and delivered by a duly authorized officer of each guarantor party thereto; 

        (n)   the
Canadian Pledge Agreements, executed and delivered by a duly authorized officer of each pledgor party thereto; 

        (o)   the
Canadian Security Agreement, executed and delivered by a duly authorized officer of each grantor party thereto; 

        (p)   the
French Pledge Agreements, executed and delivered by a duly authorized officer of each pledgor party thereto; 

        (q)   the
Singapore Pledge Agreements, executed and delivered by a duly authorized officer of each pledgor party thereto; and 

        (r)   the
Taiwan Pledge Agreements, executed and delivered by a duly authorized officer of each pledgor party thereto. 

        6.2    Collateral.    (a) All outstanding equity interests in whatever form of the US Borrower and each
Restricted Subsidiary owned by or on behalf of any Credit Party (other than a Restricted Foreign Subsidiary) shall have been pledged pursuant to the Pledge Agreement (except that the Restricted
Subsidiaries shall not be required to pledge more than 65% of the outstanding voting equity interests of any Restricted Foreign Subsidiary) and the Administrative Agent shall have received all
certificates representing securities pledged under the Pledge Agreement, accompanied by instruments of transfer and undated stock powers endorsed in blank. 

        (b)   All
outstanding equity interests in whatever form of the UK Borrower shall, except to the extent pledged pursuant to the Pledge Agreement, have been pledged pursuant to
the UK Pledge Agreements and the Administrative Agent shall have received all certificates representing securities pledged under
the UK Pledge Agreements, accompanied by instruments of transfer and undated stock powers endorsed in blank. 

        (c)   All
outstanding equity interest in whatever form of each pledgor under the German Pledge Agreement shall have been pledged pursuant to the German Pledge Agreement and
the Administrative Agent shall have received all certificates representing securities pledged under the German Pledge Agreement, accompanied by instruments of transfer and undated stock powers
endorsed in blank. 

        (d)   All
outstanding equity interest in whatever form of each pledgor under the Canadian Pledge Agreements shall have been pledged pursuant to the Canadian Pledge Agreements
and the Administrative Agent shall have received all certificates representing securities pledged under the Canadian Pledge Agreements, accompanied by instruments of transfer and undated stock powers
endorsed in blank. 

        (e)   All
outstanding equity interest in whatever form of each pledgor under the French Pledge Agreements shall have been pledged pursuant to the French Pledge Agreements and
the Administrative Agent shall have received all certificates representing securities pledged under the 

61

 

French
Pledge Agreements, accompanied by instruments of transfer and undated stock powers endorsed in blank. 

        (f)    All
outstanding equity interest in whatever form of each pledgor under the Singapore Pledge Agreements shall have been pledged pursuant to the Singapore Pledge
Agreements and the Administrative Agent shall have received all certificates representing securities pledged under the Singapore Pledge Agreements, accompanied by instruments of transfer and undated
stock powers endorsed in blank. 

        (g)   All
outstanding equity interest in whatever form of each pledgor under the Taiwan Pledge Agreements shall have been pledged pursuant to the Taiwan Pledge Agreements and
the Administrative Agent shall have received all certificates representing securities pledged under the Taiwan Pledge Agreements, accompanied by instruments of transfer and undated stock powers
endorsed in blank. 

        (h)   All
Indebtedness of Holdings, the US Borrower and each Subsidiary that is owing to any Credit Party party to the Pledge Agreement shall be evidenced by one or more
global promissory notes and shall have been pledged pursuant to the Pledge Agreement, and the Administrative Agent shall have received all such promissory notes, together with instruments of transfer
with respect thereto endorsed in blank. 

        (i)    All
documents and instruments, including Uniform Commercial Code financing statements, required by law or reasonably requested by the Administrative Agent to be filed,
registered or recorded to create the Liens intended to be created by the Security Agreement and perfect such Liens to the extent required by, and with the priority required by, the Security Agreement
shall have been filed, registered or recorded or delivered to the Administrative Agent for filing, registration or recording. 

        (j)    The
Administrative Agent shall have received, in respect of each Mortgaged Property (other than (x) the Mortgaged Property owned by Rockwood Pigments
NA, Inc. located in Beltsville, Maryland, (y) the Mortgaged Property owned by AlphaGary Corporation located in Leominster, Massachusetts and (z) the Mortgaged Property owned by
Electrochemicals Inc. located in Maple Plain, Minnesota) owned by the US Borrower or a US Subsidiary Guarantor, a policy or policies of title insurance issued by a nationally recognized title
insurance company insuring the Lien of each Mortgage as a valid first Lien on the Mortgaged Property described therein, free of any other Liens except as expressly permitted by Section 10.2,
together with such endorsements, coinsurance and reinsurance as the Administrative Agent may reasonably request. 

        6.3    Legal Opinions.    The Administrative Agent shall have received the executed legal opinions of
(a) Simpson Thacher & Bartlett LLP, special New York counsel to the US Borrower, substantially in the form of Exhibit N-1, (b) Tom Riordan, General Counsel to
the US Borrower, substantially in the form of Exhibit N-2, (c) Norton Rose, English legal counsel to the Administrative Agent, substantially in the form of
Exhibit N-3, (d) Norton Rose Vieregge, German legal counsel to the Administrative Agent, substantially in the form of Exhibit N-4, (e) Borden Ladner
Gervais LLP, Canadian legal counsel to the Borrowers, substantially in the form of Exhibit N-6, (f) Bredin Prat, French legal counsel to the Administrative Agent,
substantially in the form of Exhibit N-7, (g) Allen and Gledhill, Singapore legal counsel to the Administrative Agent, substantially in the form of
Exhibit N-8, (h) Lee and Li, Taiwan legal counsel to the Administrative Agent, substantially in the form of Exhibit N-9 and (i) local counsel to the
US Borrower in each jurisdiction where a Mortgaged Property in the United States of America is located, substantially in the form of Exhibit N-10. The US Borrower, the UK Borrower,
the other Credit Parties and the Administrative Agent hereby instruct such counsel to deliver such legal opinions. 

        6.4    No Default.    After giving effect to the Borrowings on the Closing Date and the other transactions
contemplated hereby, no Default or Event of Default has occurred and is continuing. 

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        6.5    Receipt of Subordinated Notes and New Senior Notes Proceeds.    (a) The US Borrower shall have received
gross proceeds of not less than $375,000,000 from the issuance of Subordinated Notes under the Subordinated Note Indenture in a public offering or in a Rule 144A or other private placement and
(b) Holdings shall have received gross proceeds of not less than $70,000,000 from the issuance of New Senior Notes under the New Senior Notes Indenture. The terms and conditions of
(x) the Subordinated
Notes (including, but not limited to, subordination, maturity, covenants, events of default, remedies, redemption and prepayment events) shall be reasonably satisfactory to the Agents and
(y) the New Senior Notes (including subordination, maturity, covenants, events of default, remedies, redemption and prepayment events) shall be reasonably satisfactory to the Agents (it being
understood that interest in respect of the New Senior Notes shall be paid in the form of additional New Senior Notes (in lieu of cash) prior to the fourth anniversary thereof and shall be paid in cash
thereafter). 

        6.6    Equity Contributions.    The Investor Equity Contribution and the New Notes Equity Contribution shall have been
made. KKR or an Affiliate of KKR shall have purchased the New Senior Notes from the Agents. 

        6.7    Closing Certificates.    The Administrative Agent shall have received a certificate of each Credit Party (other
than the UK Guarantors), dated the Closing Date, substantially in the form of Exhibit O, with appropriate insertions, executed by the President or any Vice President and the Secretary or any
Assistant Secretary of such Credit Party, and attaching the documents referred to in Sections 6.8 and 6.9. 

        6.8    Corporate Proceedings of Each Credit Party.    The Administrative Agent shall have received a copy of the
resolutions, in form and substance satisfactory to the Administrative Agent, of the Board of Directors of each Credit Party (or a duly authorized committee thereof) authorizing (a) the
execution, delivery and performance of the Credit Documents (and any agreements relating thereto) to which it is a party and (b) in the case of the US Borrower and the UK Borrower, the
extensions of credit contemplated hereunder. 

        6.9    Corporate Documents.    The Administrative Agent shall have received true and complete copies of the
certificate of incorporation and by-laws (or equivalent organizational documents) of each Credit Party. 

        6.10    Fees.    (a) The Lenders shall have received the fees in the amounts previously agreed in writing by
the Agents and such Lenders to be received on the Closing Date and all expenses (including the reasonable fees, disbursements and other charges of counsel) for which invoices have been presented on or
prior to the Closing Date shall have been paid. 

        6.11    Representations and Warranties.    On the Closing Date, the representations and warranties made by each of the
Parent Companies, Holdings, the US Borrower and the UK Borrower in Sections 8.1(a), 8.2 and 8.3, in each case as they relate to the Credit Parties at such time, shall be true and correct in all
material respects. 

        6.12    Refinancing.    The Refinancing shall have been consummated on terms and conditions reasonably satisfactory to
the Agents and all commitments to lend under the Existing Credit Agreement shall have been terminated and all liens in respect of amounts due under the Existing Credit Agreement shall have been
released or arrangements for such release satisfactory to the Administrative Agent shall have been made. 

63

 

        SECTION 7.    Conditions Precedent to All Credit Events    

        The
agreement of each Lender to make any Loan requested to be made by it on any date (excluding Mandatory Borrowings) and the obligation of the Letter of Credit Issuer to issue Letters
of Credit on any date is subject to the satisfaction of the following conditions precedent: 

        7.1    No Default; Representations and Warranties.    At the time of each Credit Event (other than the initial Credit
Event) and also after giving effect thereto (a) no Default or Event of Default shall have occurred and be continuing and (b) all representations and warranties made by any Credit Party
contained herein or in the other Credit Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the
date of such Credit Event (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in
all material respects as of such earlier date). 

        7.2    Notice of Borrowing; Letter of Credit Request.    (a) Prior to the making of each Term Loan, each
Revolving Credit Loan (other than any Revolving Credit Loan made pursuant to Section 3.4(a)) and each Swingline Loan, the Administrative Agent shall have received a Notice of Borrowing (whether
in writing or by telephone) meeting the requirements of Section 2.3. 

        (b)   Prior
to the issuance of each Letter of Credit, the Administrative Agent and the Letter of Credit Issuer shall have received a Letter of Credit Request meeting the
requirements of Section 3.2(a). 

        The
acceptance of the benefits of each Credit Event shall constitute a representation and warranty by each Credit Party to each of the Lenders that all the applicable conditions
specified above exist as of that time. 

        SECTION 8.    Representations, Warranties and Agreements    

        In
order to induce the Lenders to enter into this Agreement, to make the Loans and issue or participate in Letters of Credit as provided for herein, each of the Parent Companies,
Holdings, the US Borrower and the UK Borrower make the following representations and warranties to, and agreements with, the Lenders, all of which shall survive the execution and delivery of this
Agreement and the making of the Loans and the issuance of the Letters of Credit: 

        8.1    Corporate Status.    Each of the Parent Companies, Holdings, the US Borrower, the UK Borrower and each Material
Subsidiary (a) is a duly organized and validly existing corporation or other entity in good standing under the laws of the jurisdiction of its organization and has the corporate or other
organizational power and authority to own its property and assets and to transact the business in which it is engaged and (b) has duly qualified and is authorized to do business and is in good
standing in all jurisdictions where it is required to be so qualified, except where the failure to be so qualified could not reasonably be expected to result in a Material Adverse Effect. 

        8.2    Corporate Power and Authority.    Each of the Parent Companies and each Credit Party has the corporate or other
organizational power and authority to execute, deliver and carry out the terms and provisions of the Credit Documents to which it is a party and has taken all necessary corporate or other
organizational action to authorize the execution, delivery and performance of the Credit Documents to which it is a party. Each Credit Party has duly executed and delivered each Credit Document to
which it is a party and each such Credit Document constitutes the legal, valid and binding obligation of such Credit Party enforceable in accordance with its terms, except as the enforceability
thereof may be limited by bankruptcy, insolvency or similar laws affecting creditors' rights generally and subject to general principles of equity. 

        8.3    No Violation.    Neither the execution, delivery or performance by any Credit Party of the Credit Documents to
which it is a party nor compliance with the terms and provisions thereof nor 

64

 

the
consummation of the Refinancing and the other transactions contemplated hereby or thereby will (a) contravene any applicable provision of any material law, statute, rule, regulation, order,
writ, injunction or decree of any court or governmental instrumentality, (b) result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or
result in the creation or imposition of (or the obligation to create or impose) any Lien upon any of the property or assets of any of the Parent Companies, Holdings, the US Borrower, the UK Borrower
or any of the Restricted Subsidiaries (other than Liens created under the Credit Documents) pursuant to, the terms of any material indenture (including the Subordinated Note Indenture, the New Senior
Notes Indenture and any PIK Notes Documents), loan agreement, lease agreement, mortgage, deed of trust, agreement or other material instrument to which any of the Parent Companies, Holdings, the US
Borrower, the UK Borrower or any of the Restricted Subsidiaries is a party or by which it or any of its property or assets is bound or (c) violate any provision of the certificate of
incorporation, By-Laws or other constitutional documents of the Parent Companies, Holdings, the US Borrower, the UK Borrower or any of the Restricted Subsidiaries. 

        8.4    Litigation.    There are no actions, suits or proceedings (including Environmental Claims) pending or, to the
knowledge of any of the Parent Companies, Holdings, the US Borrower or the UK Borrower, threatened with respect to any of the Parent Companies, Holdings, the US Borrower, the UK Borrower or any of its
Subsidiaries that could reasonably be expected to result in a Material Adverse Effect. 

        8.5    Margin Regulations.    Neither the making of any Loan hereunder nor the use of the proceeds thereof will
violate the provisions of Regulation T, U or X of the Board. 

        8.6    Governmental Approvals.    No order, consent, approval, license, authorization, or validation of, or filing,
recording or registration with, or exemption by, any Governmental Authority is required to authorize or is required in connection with (a) the execution, delivery and performance of any Credit
Document or (b) the legality, validity, binding effect or enforceability of any Credit Document, except any of the foregoing the failure to obtain or make could not reasonably be expected to
have a Material Adverse Effect. 

        8.7    Investment Company Act.    Neither Holdings nor the US Borrower is an "investment company" within the meaning
of the Investment Company Act of 1940, as amended. 

        8.8    True and Complete Disclosure.    (a) None of the factual information and data (taken as a whole)
heretofore or contemporaneously furnished by any of the Parent Companies, Holdings, the US Borrower, the UK Borrower, any of the Subsidiaries or any of their respective authorized representatives in
writing to the Administrative Agent and/or any Lender on or before the Closing Date (including (i) the Confidential Information Memorandum and (ii) all information contained in the
Credit Documents) for purposes of or in connection with this Agreement or any transaction contemplated herein contained any untrue statement or omitted to state any material fact necessary to make
such information and data (taken as a whole) not misleading at such time in light of the circumstances under which such information or data was furnished, it being understood and agreed that for
purposes of this Section 8.8(a), such factual information and data shall not include projections and pro forma financial information. 

        (b)   The
projections and pro forma financial information contained in the information and data referred to in paragraph (a) above were based on good faith estimates
and assumptions believed by such Persons to be reasonable at the time made, it being recognized by the Lenders that such projections as to future events are not to be viewed as facts and that actual
results during the period or periods covered by any such projections may differ from the projected results. 

65

  

        8.9    Financial Condition; Financial Statements.    The (a) unaudited historical consolidated financial
information of the US Borrower as set forth in the Confidential Information Memorandum, and (b) audited combined balance sheet of the US Borrower and the related audited statements of
operations and cash flows (in each case to be provided pursuant to Section 9.1(i)), in each case present or will, when provided, present fairly in all material respects the combined financial
position of the US Borrower at the respective dates of said information, statements and results of operations for the respective periods covered thereby. The financial statements referred to in
clause (b) of this Section 8.9 have been prepared in accordance with GAAP consistently applied except to the extent provided in the notes to said financial statements. There has been no
Material Adverse Change since December 31, 2002, other than solely as a result of changes in general economic conditions. 

        8.10    Tax Returns and Payments.    Each of the Parent Companies, Holdings, the US Borrower, the UK Borrower and the
Subsidiaries has filed all federal income tax returns and all other material tax returns, domestic and foreign, required to be filed by it and has paid all material taxes and assessments payable by it
that have become due, other than those not yet delinquent or contested in good faith. Each of the Parent Companies, Holdings, the US Borrower, the UK Borrower and each of the Subsidiaries have paid,
or have provided adequate reserves (in the good faith judgment of the management of the US Borrower) in accordance with GAAP for the payment of, all material federal, state and foreign income taxes
applicable for all prior fiscal years and for the current fiscal year to the Closing Date. To the extent that any breach of any of the representations or warranties in this Section 8.10 relates
to a period, event or action prior to the Closing Date in respect of which the Parent Companies, Holdings, the US Borrower and/or the Restricted Subsidiaries are indemnified to the extent of the
breach by the Seller pursuant to the Purchase Agreement, there shall be deemed to be no breach thereof, provided that such a breach will exist if the
Seller does not satisfy its indemnification obligations to the extent and in respect of the circumstances giving rise to such breach within a reasonable time of being notified by the Parent Companies,
Holdings, the US Borrower and/or the Restricted Subsidiaries of such circumstances (such Persons hereby agreeing to so notify the Seller promptly of such circumstances). 

        8.11    Compliance with ERISA.    Each Plan is in compliance with ERISA, the Code and any applicable Requirement of
Law; no Reportable Event has occurred (or is reasonably likely to occur) with respect to any Plan; no Plan is insolvent or in reorganization (or is reasonably likely to be insolvent or in
reorganization), and no written notice of any such insolvency or reorganization has been given to any of the Parent Companies, Holdings, the US Borrower, any Subsidiary or any ERISA Affiliate; no Plan
(other than a multiemployer plan) has an accumulated or waived funding deficiency (or is reasonably likely to have such a deficiency); none of the Parent Companies, Holdings, the US Borrower, any
Subsidiary or any ERISA Affiliate has incurred (or is reasonably likely expected to incur) any liability to or on account of a Plan pursuant to Section 409, 502(i), 502(1), 515, 4062, 4063,
4064, 4069, 4201 or 4204 of ERISA or Section 4971 or 4975 of the Code or has been notified in writing that it will incur any liability under any of the foregoing Sections with respect to any
Plan; no proceedings have been instituted (or are reasonably likely to be instituted) to terminate or to reorganize any Plan or to appoint a trustee to administer any Plan, and no written notice of
any such proceedings has been given to any of the Parent Companies, Holdings, the US Borrower, any Subsidiary or any ERISA Affiliate; and no lien imposed under the Code or ERISA on the assets of any
of the Parent Companies, Holdings, the US Borrower or any Subsidiary or any ERISA Affiliate exists (or is reasonably likely to exist) nor has any of the Parent Companies, Holdings, the US Borrower,
any Subsidiary or any ERISA Affiliate been notified in writing that such a lien will be imposed on the assets of any of the Parent Companies, Holdings, the US Borrower, any Subsidiary or any ERISA
Affiliate on account of any Plan, except to the extent that a breach of any of the representations, warranties or agreements in this Section 8.11 

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would
not result, individually or in the aggregate, in an amount of liability that would be reasonably likely to have a Material Adverse Effect or relates to any matter disclosed in the financial
statements of the US Borrower contained in the Confidential Information Memorandum. No Plan (other than a multiemployer plan) has an Unfunded Current Liability that would, individually or when taken
together with any other liabilities referenced in this Section 8.11, be reasonably likely to have a Material Adverse Effect. With respect to Plans that are multiemployer plans (as defined in
Section 3(37) of ERISA), the representations and warranties in this Section 8.11, other than any made with respect to (a) liability under Section 4201 or 4204 of ERISA or
(b) liability for termination or reorganization of such Plans under ERISA, are made to the best knowledge of the US Borrower. To the extent that any breach of any of the representations or
warranties in this Section 8.11 relates to a period, event or action prior to the Closing Date in respect of which the Parent Companies, Holdings, the US Borrower and/or the Restricted
Subsidiaries are indemnified to the extent of the breach by the Seller pursuant to the Purchase Agreement, there shall be deemed to be no breach thereof,  provided that such a breach will exist if the
Seller does not satisfy its indemnification obligations to the extent and in respect of the circumstances
giving rise to such breach within a reasonable time of being notified by the Parent Companies, Holdings, the US Borrower and/or the Restricted Subsidiaries of such circumstances (such Persons hereby
agreeing to so notify the Seller promptly of such circumstances). 

        8.12    Subsidiaries.    Subject to any change in corporate structure effected pursuant to Section 10.3(E) or
Section 10.3(F), (a) Parent does not have any Subsidiaries other than PIK Holdco and its Subsidiaries and (b) PIK Holdco does not have any Subsidiaries other than Holdings and its
Subsidiaries. Holdings does not have any Subsidiaries other than the US Borrower and its Subsidiaries. Schedule 8.12 lists each Subsidiary of the US Borrower (and the direct and indirect
ownership interest of the US Borrower therein), in each case existing on the Closing Date. To the knowledge of the US Borrower, after due enquiry, each Material Subsidiary as of the Closing Date has
been so designated on Schedule 8.12. 

        8.13    Patents, etc.    Holdings, the US Borrower, the UK Borrower and each of the Restricted Subsidiaries have
obtained all patents, trademarks, servicemarks, trade names, copyrights, licenses and other rights, free from burdensome restrictions, that are necessary for the operation of their respective
businesses as currently conducted and as proposed to be conducted, except where the failure to obtain any such rights could not reasonably be expected to have a Material Adverse Effect. 

        8.14    Environmental Laws.    (a) Except as could not reasonably be expected to have a Material Adverse
Effect: (i) each of the Parent Companies, Holdings, the US Borrower, the UK Borrower and each of the Subsidiaries are in compliance with all Environmental Laws in all jurisdictions in which the
Parent Companies, Holdings, the US Borrower and each of the Subsidiaries are currently doing business (including having obtained all material permits required under Environmental Laws);
(ii) each of the Parent Companies, Holdings, the US Borrower and the UK Borrower will comply and cause each of the Subsidiaries to comply with all such Environmental Laws (including all permits
required under Environmental Laws); and (iii) none of the Parent Companies, Holdings, the US Borrower, the UK Borrower and each of the Subsidiaries has become subject to any Environmental Claim
or any other liability under any Environmental Law. 

        (b)   None
of the Parent Companies, Holdings, the US Borrower, the UK Borrower or any of the Subsidiaries has treated, stored, transported, released or disposed of Hazardous
Materials at or from any currently or formerly owned Real Estate or facility relating to its business in a manner that could reasonably be expected to have a Material Adverse Effect. 

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        8.15    Properties.    Each of the Parent Companies, Holdings, the US Borrower, the UK Borrower and each of the
Subsidiaries have good title to or leasehold interest in all properties that are necessary for the operation of their respective businesses as currently conducted and as proposed to be conducted, free
and clear of all Liens (other than any Liens permitted by this Agreement) and except where the failure to have such good title could not reasonably be expected to have a Material Adverse Effect. 

        8.16    Compliance with Financial Assistance Laws.    As far as the UK Borrower and the UK Guarantors are concerned,
all of the requirements of sections 151 to 158 of the Companies Act 1985 (in effect in England) (the "Whitewash Requirements") have been, or
prior to the execution and delivery to the Administrative Agent of the Security Documents to which such entities are party securing the Tranche A Term Loans and/or the
Tranche B-1 Term Loans, will have been satisfied to the extent necessary to ensure that the execution, delivery and performance of such Security Documents by the parties thereto
(other than the Administrative Agent) is lawful and, as at the date of this Agreement, none of the Parent Companies, Holdings, the US Borrower or the UK Borrower is aware of any reason why any of the
UK Borrower or the UK Guarantors would be unable to comply with the Whitewash Requirements, including the making by their respective directors of the necessary statutory declarations, for the purposes
of Section 9.18(a). 

        SECTION
9.    Affirmative Covenants    

        Each
of the Parent Companies, Holdings, the US Borrower and the UK Borrower hereby covenants and agrees that on the Closing Date and thereafter, for so long as this Agreement is in
effect and until the Commitments, the Swingline Commitment and each Letter of Credit have terminated and the Loans and Unpaid Drawings, together with interest, Fees and all other Obligations incurred
hereunder, are paid in full: 

        9.1    Information Covenants.    Holdings or the US Borrower will furnish to each Lender and the Administrative Agent: 

        (a)    Annual Financial Statements.    As soon as available and in any event on or before the date on which such
financial statements are required to be filed with the SEC (or, if such financial statements are not required to be filed with the SEC, on or before the date that is 90 days after the end of
each such fiscal year), the consolidated balance sheet of (i) Holdings, the US Borrower and the Restricted Subsidiaries and (ii) Holdings and its Subsidiaries, in each case as at the end
of such fiscal year, and the related consolidated statement of operations and cash flows for such fiscal year, setting forth comparative consolidated figures for the preceding fiscal year, and
certified by independent certified public accountants of recognized national standing whose opinion shall not be qualified as to the scope of audit or as to the status of Holdings, the US Borrower,
the UK Borrower or any of the Material Subsidiaries as a going concern, together in any event with a certificate of such accounting firm stating that in the course of its regular audit of the business
of Holdings, the US Borrower, the UK Borrower and the Material Subsidiaries, which audit was conducted in accordance with generally accepted auditing standards, such accounting firm has obtained no
knowledge of any Default or Event of Default relating to Section 10.9 or 10.10 that has occurred and is continuing or, if in the opinion of such accounting firm such a Default or Event of
Default has occurred and is continuing, a statement as to the nature thereof. 

        (b)    Quarterly Financial Statements.    As soon as available and in any event on or before the date on which such
financial statements are required to be filed with the SEC with respect to each of the first three quarterly accounting periods in each fiscal year of Holdings (or, if such financial statements are
not required to be filed with the SEC, on or before the date that is 45 days after the end of each such quarterly accounting period), the consolidated balance sheet of (i) Holdings, the
US Borrower and the Restricted Subsidiaries and (ii) Holdings and 

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its
Subsidiaries, in each case as at the end of such quarterly period and the related consolidated statement of operations for such quarterly accounting period and for the elapsed portion of the
fiscal year ended with the last day of such quarterly period, and the related consolidated statement of cash flows for the elapsed portion of the fiscal year ended with the last day of such quarterly
period, and setting forth comparative consolidated figures for the related periods in the prior fiscal year or, in the case of such consolidated balance sheet, for the last day of the prior fiscal
year, all of which shall be certified by an Authorized Officer of the US Borrower, subject to changes resulting from audit and normal year-end audit adjustments. 

        (c)    Budgets.    Within 60 days after the commencement of each fiscal year of Holdings and the US Borrower,
budgets of Holdings, the US Borrower and the UK Borrower in reasonable detail for the fiscal year as customarily prepared by management of Holdings, the US Borrower and the UK Borrower for their
internal use, setting forth the principal assumptions upon which such budgets are based. 

        (d)    Officer's Certificates.    At the time of the delivery of the financial statements provided for in
Sections 9.1 (a) and (b), a certificate of an Authorized Officer of the US Borrower to the effect that no Default or Event of Default exists or, if any Default or Event of Default does
exist, specifying the nature and extent thereof, which certificate shall set forth (i) the calculations required to establish whether Holdings, the US Borrower and the Subsidiaries were in
compliance with the provisions of Sections 10.9 and 10.10 as at the end of such fiscal year or period, as the case may be, (ii) a specification of any change in the identity of the
Restricted Subsidiaries, Unrestricted Subsidiaries and Foreign Subsidiaries as at the end of such fiscal year or period, as the case may be, from the Restricted Subsidiaries, Unrestricted Subsidiaries
and Foreign Subsidiaries, respectively, provided to the Lenders on the Closing Date or the most recent fiscal year or period, as the case may be, (iii) the then applicable Status and
(iv) the amount of any Pro Forma Adjustment not previously set forth in a Pro Forma Adjustment Certificate or any change in the amount of a Pro Forma Adjustment set forth in any Pro Forma
Adjustment Certificate previously provided and, in either case, in reasonable detail, the calculations and basis therefor. At the time of the delivery of the financial statements provided for in
Section 9.1(a), (i) a certificate of an Authorized Officer of the US Borrower setting forth in reasonable detail the Available Amount as at the end of the fiscal year to which such
financial statements relate and (ii) a certificate of an Authorized Officer and the chief legal officer of the US Borrower (x) setting forth the information required pursuant to
Section 2 of the Perfection Certificate or confirming that there has been no change in such information since the Closing Date or the date of the most recent certificate delivered pursuant to
this subsection (d)(ii), as the case may be, and (ii) certifying that all Uniform Commercial Code financing statements (including fixture filings, as applicable) or other appropriate filings,
recordings or registrations, including all refilings, rerecordings and reregistrations, containing a description of the Collateral have been filed of record in each governmental, municipal or
other appropriate office in each jurisdiction identified pursuant to clause (x) above to the extent necessary to protect and perfect the security interests under the Security Documents. 

        (e)    Notice of Default or Litigation.    Promptly after an Authorized Officer of any of the Parent Companies,
Holdings, the US Borrower, the UK Borrower or any of the Subsidiaries obtains knowledge thereof, notice of (i) the occurrence of any event that constitutes a Default or Event of Default, which
notice shall specify the nature thereof, the period of existence thereof and what action any of the Parent Companies, Holdings, the US Borrower or the UK Borrower proposes to take with respect
thereto, and (ii) any litigation or governmental proceeding pending against any of the Parent Companies, Holdings, the US Borrower, the UK 

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Borrower
or any of the Subsidiaries that could reasonably be expected to result in a Material Adverse Effect. 

        (f)    Environmental Matters.    The Parent Companies, Holdings, the US Borrower and the UK Borrower will promptly
advise the Lenders in writing after obtaining knowledge of any one or more of the following environmental matters, unless such environmental matters would not, individually or when aggregated with all
other such matters, be reasonably expected to result in a Material Adverse Effect: 

        (i)    Any
pending or threatened Environmental Claim against any of the Parent Companies, Holdings, the US Borrower, the UK Borrower or any of the Subsidiaries or any Real
Estate; 

        (ii)   Any
condition or occurrence on any Real Estate that (x) results in noncompliance by any of the Parent Companies, Holdings, the US Borrower, the UK Borrower or
any of the Subsidiaries with any applicable Environmental Law or (y) could reasonably be anticipated to form the basis of an Environmental Claim against any of the Parent Companies, Holdings,
the US Borrower, the UK Borrower or any of the Subsidiaries or any Real Estate; 

        (iii)  Any
condition or occurrence on any Real Estate that could reasonably be anticipated to cause such Real Estate to be subject to any restrictions on the ownership,
occupancy, use or transferability of such Real Estate under any Environmental Law; and 

        (iv)  The
taking of any removal or remedial action in response to the actual or alleged presence of any Hazardous Material on any Real Estate. 

All
such notices shall describe in reasonable detail the nature of the claim, investigation, condition, occurrence or removal or remedial action and the response thereto. The term
"Real Estate" shall mean land, buildings and improvements owned or leased by any of the Parent Companies, Holdings, the US Borrower, the UK Borrower or
any of the Subsidiaries, but excluding all operating fixtures and equipment, whether or not incorporated into improvements. 

        (g)    Other Information.    Promptly upon filing thereof, copies of any filings (including on
Form 10-K, 10-Q or 8-K) or registration statements with, and reports to, the SEC or any analogous Government Authority in any relevant jurisdiction by any of
the Parent Companies, Holdings, the US Borrower, the UK Borrower or any of the Subsidiaries (other than amendments to any registration statement (to the extent such registration statement, in the form
it becomes effective, is delivered to the Lenders), exhibits to any registration statement and, if applicable, any registration statements on Form S-8) and copies of all financial
statements, proxy statements, notices and reports that any of the Parent Companies, Holdings, the US Borrower, the UK Borrower or any of the Subsidiaries shall send to the holders of any publicly
issued debt of any of the Parent Companies, Holdings, the US Borrower, the UK Borrower and/or any of the Subsidiaries (including any Subordinated Notes, any New Senior Notes and any PIK Notes (in each
case whether publicly issued or not)) in their capacity as such holders (in each case to the extent not theretofore delivered to the Lenders pursuant to this Agreement) and, with reasonable
promptness, such other information (financial or otherwise) as the Administrative Agent on its own behalf or on behalf of any Lender may reasonably request in writing from time to time. 

        (h)    Pro Forma Adjustment Certificate.    Not later than the consummation of the acquisition of any Acquired Entity
or Business by the US Borrower or any Restricted Subsidiary for which there shall be a Pro Forma Adjustment and not later than any date on which financial statement are delivered with respect to any
four-quarter period in which a Pro Forma Adjustment is made as a result of the consummation of the acquisition of any 

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Acquired
Entity or Business by the US Borrower or any Restricted Subsidiary for which there shall be a Pro Forma Adjustment, a certificate of an Authorized Officer of the US Borrower setting forth the
amount of such Pro Forma Adjustment and, in reasonable detail, the calculations and basis therefor. 

        (i)    Perfection Certificate.    The US Borrower shall deliver to the Administrative Agent on the Closing Date a
completed Perfection Certificate dated the Closing Date and signed by an Authorized Officer and the chief legal officer of the US Borrower, together with all attachments contemplated thereby. 

        9.2    Books, Records and Inspections.    Each of the Parent Companies, Holdings, the US Borrower and the UK Borrower
will, and will cause each of the Subsidiaries to, permit officers and designated representatives of the Administrative Agent or the Required Lenders to visit and inspect any of the properties or
assets of the Parent Companies, Holdings, the US Borrower, the UK Borrower and any such Subsidiary in whomsoever's possession to the extent that it is within such party's control to permit such
inspection, and to examine the books of account of the Parent Companies, Holdings, the US
Borrower, the UK Borrower and any such Subsidiary and discuss the affairs, finances and accounts of the Parent Companies, Holdings, the US Borrower, the UK Borrower and of any such Subsidiary with,
and be advised as to the same by, its and their officers and independent accountants, all at such reasonable times and intervals and to such reasonable extent as the Administrative Agent or the
Required Lenders may desire. 

        9.3    Maintenance of Insurance.    Each of the Parent Companies, Holdings, the US Borrower and the UK Borrower will,
and will cause each of the Material Subsidiaries to, at all times maintain in full force and effect, with insurance companies that the US Borrower believes (in the good faith judgment of the
management of the US Borrower) are financially sound and responsible at the time the relevant coverage is placed or renewed, insurance in at least such amounts and against at least such risks (and
with such risk retentions) as are usually insured against in the same general area by companies engaged in the same or a similar business; and will furnish to the Lenders, upon written request from
the Administrative Agent, information presented in reasonable detail as to the insurance so carried. 

        9.4    Payment of Taxes.    Each of the Parent Companies, Holdings, the US Borrower and the UK Borrower will pay and
discharge, and will cause each of the Subsidiaries to pay and discharge, all material taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits, or upon any
properties belonging to it, prior to the date on which material penalties attach thereto, and all lawful material claims that, if unpaid, could reasonably be expected to become a material Lien upon
any properties of the US Borrower, the UK Borrower or any of the Restricted Subsidiaries, provided that neither the Parent Companies, Holdings, the US
Borrower, the UK Borrower nor any of the Subsidiaries shall be required to pay any such tax, assessment, charge, levy or claim that is being contested in good faith and by proper proceedings if it has
maintained adequate reserves (in the good faith judgment of the management of the US Borrower) with respect thereto in accordance with GAAP. 

        9.5    Consolidated Corporate Franchises.    Each of the Parent Companies, Holdings, the US Borrower and the UK
Borrower will do, and will cause each Material Subsidiary to do, or cause to be done, all things necessary to preserve and keep in full force and effect its existence, corporate rights and authority,
except to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect; provided,  however, that the US Borrower
and its Subsidiaries may consummate any transaction permitted under Section 10.3, 10.4 or 10.5. 

        9.6    Compliance with Statutes, Obligations, etc..    Each of the Parent Companies, Holdings, the US Borrower and the
UK Borrower will, and will cause each Subsidiary to, comply with all 

71

 

applicable
laws, rules, regulations and orders, except to the extent the failure to do so could not reasonably be expected to have a Material Adverse Effect. 

        9.7    ERISA.    Promptly after any of the Parent Companies, Holdings, the US Borrower or any Subsidiary or any ERISA
Affiliate knows or has reason to know of the occurrence of any of the following events that, individually or in the aggregate (including in the aggregate such events previously disclosed or exempt
from disclosure hereunder, to the extent the liability therefor remains outstanding), would be reasonably likely to have a Material Adverse Effect, the Parent Companies, Holdings or the US Borrower
will deliver to each of the Lenders a certificate of an Authorized Officer or any other senior officer of the US Borrower setting forth details as to such occurrence and the action, if any, that the
Parent Companies, Holdings, the US Borrower, such Subsidiary or such ERISA Affiliate is required or proposes to take, together with any notices (required, proposed or otherwise) given to or filed with
or by the Parent Companies, Holdings, the US Borrower, such Subsidiary, such ERISA Affiliate, the PBGC, a Plan participant (other than notices relating to an individual participant's benefits) or the
Plan administrator with respect thereto: that a Reportable Event has occurred; that an accumulated funding deficiency has been incurred or an application is to be made to the Secretary of the Treasury
for a waiver or modification of the minimum funding standard (including any required installment payments) or an extension of any amortization period under Section 412 of the Code with respect
to a Plan; that a Plan having an Unfunded Current Liability has been or is to be terminated, reorganized, partitioned or declared insolvent under Title IV of ERISA (including the giving of written
notice thereof); that a Plan has an Unfunded Current Liability that has or will result in a lien under ERISA or the Code; that proceedings will be or have been instituted to terminate a Plan having an
Unfunded Current Liability (including the giving of written notice thereof); that a proceeding has been instituted against the US Borrower, a Subsidiary or an ERISA Affiliate pursuant to
Section 515 of ERISA to collect a delinquent contribution to a Plan; that the PBGC has notified the Parent Companies, Holdings, the US Borrower, any Subsidiary or any ERISA Affiliate of its
intention to appoint a trustee to administer any Plan; that the Parent Companies, Holdings, the US Borrower, any Subsidiary or any ERISA Affiliate has failed to make a required installment or other
payment pursuant to Section 412 of the Code with respect to a Plan; or that the Parent Companies, Holdings, the US Borrower, any Subsidiary or any ERISA Affiliate has incurred or will incur (or
has been notified in writing that it will incur) any liability (including any contingent or secondary liability) to or on account of a Plan pursuant to Section 409, 502(i), 502(1), 515, 4062,
4063, 4064, 4069, 4201 or 4204 of ERISA or Section 4971 or 4975 of the Code. 

        9.8    Good Repair.    Each of the Parent Companies, Holdings, the US Borrower and the UK Borrower will, and will
cause each of the Restricted Subsidiaries to, ensure that its properties and equipment used or useful in its business in whomsoever's possession they may be to the extent that it is within the control
of such party to cause same, are kept in good repair, working order and condition, normal wear and tear excepted, and that from time to time there are made in such properties and equipment all needful
and proper repairs, renewals, replacements, extensions, additions, betterments and improvements thereto, to the extent and in the manner customary for companies in similar businesses and consistent
with third party leases, except in each case to the extent the failure to do so could not be reasonably expected to have a Material Adverse Effect. 

        9.9    Transactions with Affiliates.    Each of the Parent Companies, Holdings, the US Borrower and the UK Borrower
will conduct, and cause each of the Restricted Subsidiaries to conduct, all transactions with any of its Affiliates on terms that are substantially as favorable to the Parent Companies, Holdings, the
US Borrower, the UK Borrower or such Restricted Subsidiary as it would obtain in a comparable arm's-length transaction with a Person that is not an Affiliate,  provided that the foregoing restrictions
shall not apply to (a) the payment of customary annual fees to KKR and/or its Affiliates for management,
consulting and financial services rendered to the 

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Parent
Companies, Holdings, the US Borrower, the UK Borrower and the Subsidiaries and investment banking fees paid to KKR and its Affiliates for services rendered to the Parent Companies, Holdings,
the US Borrower, the UK Borrower and the Subsidiaries in connection with divestitures, acquisitions, financings and other transactions, (b) customary fees paid to members of the Board of
Directors of the Parent Companies, Holdings, the US Borrower, the UK Borrower and the Subsidiaries and (c) transactions permitted by Section 10.6. 

        9.10    End of Fiscal Years; Fiscal Quarters.    Holdings and the US Borrower will, for financial reporting purposes,
cause (a) each of its, and each of its Subsidiaries', fiscal years to end on December 31 of each year and (b) each of its, and each of its Subsidiaries', fiscal quarters to end on
dates consistent with such fiscal year-end and Holdings and the US Borrower's past practice; provided,  however, that Holdings and the US Borrower may, upon
written notice to the Administrative Agent, change the financial reporting convention specified
above to any other financial reporting convention reasonably acceptable to the Administrative Agent, in which case Holdings and the US Borrower and the Administrative Agent will, and are hereby
authorized by the Lenders to, make any adjustments to this Agreement that are necessary in order to reflect such change in financial reporting. 

        9.11    Additional Guarantors and Grantors.    (a) Except as provided in Section 10.1(j) or (k), each
of the Parent Companies, Holdings, the US Borrower and the UK Borrower will cause (i) any direct or indirect Domestic Subsidiary (other than any Unrestricted Subsidiary) formed or otherwise
purchased or acquired after the date hereof (including pursuant to a Permitted Acquisition) and (ii) any Subsidiary (other than any Unrestricted Subsidiary) that is not a Domestic Subsidiary on
the date hereof but subsequently becomes a Domestic Subsidiary (other than any Unrestricted Subsidiary), in each case to execute a supplement to each of the Guarantee and the Security Agreement,
substantially in the form of Annex B or Annex 1, as applicable, to the respective agreement in order to become a Guarantor under the Guarantee and a grantor under the Security Agreement. 

        (b)   Except
as provided in Section 10.1(j) or (k), each of the Parent Companies, Holdings, the US Borrower and the UK Borrower will, except to the extent prohibited by
applicable law or to the extent that it would result in material adverse tax consequences for Parent and its Subsidiaries, taken as a whole, cause (i) any direct or indirect Subsidiary of the
US Borrower (other than any Unrestricted Subsidiary or Foreign Joint Venture) incorporated under the laws of any of England and Wales, Scotland, Germany, Italy, Canada or Singapore that is formed or
otherwise purchased or acquired after the date hereof (including pursuant to a Permitted Acquisition) and (ii) any Subsidiary (other than an Unrestricted Subsidiary or Foreign Joint Venture)
that is not incorporated under the laws of any such country on the date hereof but subsequently becomes incorporated under such laws, in each case to execute a supplement to the applicable Foreign
Security Documents in form and substance reasonably satisfactory to the Administrative Agent (or guarantee and security arrangements in relation to the Obligations of the UK Borrower, as the case may
be, in a form and to an extent agreed between the US Borrower and the Administrative Agent, but to be substantially consistent (taking into account the scope of customary collateral arrangements in
the applicable jurisdiction) with the scope of the guarantee and collateral arrangements entered into pursuant to the Foreign Subsidiary Guarantees and the Foreign Security Documents), in order to
become a Foreign Subsidiary Guarantor and a grantor under the applicable Foreign Security Documents. 

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        (c)   Except
as provided in Section 10.1(j) or (k), each of the Parent Companies, Holdings, the US Borrower and the UK Borrower will cause each Foreign Subsidiary that
is a Restricted Foreign Subsidiary, or that is required to become a Restricted Foreign Subsidiary for an investment to constitute a Permitted Acquisition, in each case that makes an investment
constituting a Permitted Acquisition pursuant to Section 10.5(j) to enter into guarantee and security arrangements in relation to the Obligations of the US Borrower and/or the UK Borrower, as
the case may be, in respect of the capital stock and/or assets acquired pursuant to such Permitted Acquisition, in a form and to an extent agreed between the US Borrower and the Administrative Agent,
but to be substantially consistent (taking into account the scope of customary collateral arrangements in the applicable jurisdiction) with the scope of the guarantee and collateral arrangements
entered into pursuant to the Foreign Subsidiary Guarantees and the Foreign Security Documents, and to comply with Section 9.15 in respect of such arrangements,  provided that no such Restricted
Foreign Subsidiary shall be required to enter into such arrangements to the extent that such arrangements would
(i) be prohibited by the law of the jurisdiction of incorporation or formation of such Restricted Subsidiary or of the entity whose capital stock is acquired or (ii) have material
adverse tax consequences for any of the Parent Companies, Holdings, the US Borrower or any of the Restricted Subsidiaries. 

        9.12    Pledges of Additional Stock and Evidence of Indebtedness.    (a) Except as provided in
Section 10.1(j) or (k), the US Borrower will pledge, and, if applicable, will cause each Domestic Subsidiary to pledge, to the Administrative Agent, for the benefit of the Secured Parties,
(i) all the capital stock of each Domestic Subsidiary (other than any Unrestricted Subsidiary) and each Foreign Subsidiary (other than an Unrestricted Subsidiary or any capital stock
representing in excess of 65% of the issued and outstanding capital stock in any Foreign Subsidiary) held by the US Borrower or a Domestic Subsidiary, in each case, formed or otherwise purchased or
acquired after the date hereof, in each case pursuant to a supplement to the Pledge Agreement in form and substance reasonably satisfactory to the Administrative Agent, (ii) all evidences of
Indebtedness in excess of $5,000,000 received by the US Borrower or any of the Domestic Subsidiaries (other than any Unrestricted Subsidiary) in connection with any disposition of assets pursuant to
Section 10.4(b), in each case pursuant to a supplement to the Pledge Agreement, substantially in the form of Annex A thereto and (iii) any global promissory notes executed after
the date hereof evidencing Indebtedness of any of Holdings, the US Borrower and each Subsidiary that is owing to any of the US Borrower or any Domestic Subsidiary (other than any Unrestricted
Subsidiary), in each case pursuant to a supplement to the Pledge Agreement, substantially in the form of Annex A thereto. 

        (b)   Except
as provided in Section 10.1(j) or (k), the US Borrower will pledge, and, if applicable, will cause each Subsidiary (other than any Foreign Joint Venture)
to pledge, to the Administrative Agent, for the benefit of the Lenders to the UK Borrower, (i) all the capital stock of each Subsidiary of the UK Borrower and of any Foreign Subsidiary
Guarantor formed or otherwise purchased or acquired after the date hereof, in each case pursuant to a supplement to the applicable Foreign Security Documents in form and substance reasonably
satisfactory to the Administrative Agent (or pledge arrangements in relation to the Obligations of the UK Borrower, in a form and to an extent agreed between the US Borrower and the Administrative
Agent, but to be substantially consistent (taking into account the scope of customary collateral arrangements in the applicable jurisdiction) with the scope of the pledge arrangements entered into
pursuant to the Foreign Security Documents) and (ii) all evidences of Indebtedness with a Dollar Equivalent in excess of $5,000,000 received by any of the Foreign Subsidiary Guarantors in
connection with any disposition of assets pursuant to Section 10.4(b), in each case pursuant to a supplement to the applicable Foreign Security Documents in form and substance reasonably
satisfactory to the Administrative Agent (or pledge arrangements in relation to the Obligations of the UK Borrower, in a form and to an extent agreed between the US Borrower and the Administrative
Agent, but to 

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be
substantially consistent (taking into account the scope of customary collateral arrangements in the applicable jurisdiction) with the scope of the pledge arrangements entered into pursuant to the
Foreign Security Documents). 

        (c)   Holdings
will pledge to the Administrative Agent, for the benefit of the Lenders, all capital stock of the US Borrower acquired by it after the Closing Date (including
any capital stock issued in connection with (i) PIK Proceeds Equity Contributions, (ii) loans and advances made pursuant to Section 10.5(c)(i) and (iii) dividends
paid by the Borrower solely in its capital stock pursuant to Section 10.6) and the US Borrower will pledge to the Administrative Agent, for the benefit of the Secured Parties, pursuant to the
Pledge Agreement or the UK Pledge Agreements, as the case may be, all capital stock of the UK Borrower acquired by it after the Closing Date. 

        (d)   Holdings,
the US Borrower and the UK Borrower agree that all Indebtedness in excess of $5,000,000 of any of Holdings, the US Borrower and each Subsidiary that is owing
to any Credit Party party to the Pledge Agreement shall be evidenced by one or more global promissory notes. 

        9.13    Use of Proceeds.    The US Borrower and the UK Borrower will use the Letters of Credit and the proceeds of all
Loans for the purposes set forth in the introductory statement to this Agreement. 

        9.14    Changes in Business.    The Parent Companies, Holdings, the US Borrower, the UK Borrower and the Subsidiaries,
taken as a whole, will not fundamentally and substantively alter the character of their business, taken as a whole, from the business conducted by the Parent Companies, Holdings, the US Borrower, the
UK Borrower and the Subsidiaries, taken as a whole, on the Closing Date and other business activities incidental or related to any of the foregoing. 

        9.15    Further Assurances.    (a) Each of Holdings, the US Borrower and the UK Borrower will, and will cause
each other Credit Party to, execute any and all further documents, financing statements, agreements and instruments, and take all such further actions (including the filing and recording of financing
statements, fixture filings, mortgages, deeds of trust and other documents), which may be required under any applicable law, or which the Administrative Agent or the Required Lenders may reasonably
request, in order to effectuate the transactions contemplated by the Credit Documents and in order to grant, preserve, protect and perfect the validity and priority of the security interests created
or intended to be created by the Security Agreement, the Pledge Agreement, any Foreign Security Document or any Mortgage, all at the expense of Holdings, the US Borrower and the Restricted
Subsidiaries. 

        (b)   If
any assets (including any real estate or improvements thereto or any interest therein) with a book value or fair market value in excess of $1,000,000 are acquired by
the US Borrower, the UK Borrower or any other Credit Party after the Closing Date (other than assets constituting Collateral under the Security Agreement or any Foreign Security Document that become
subject to the Lien of the Security Agreement or the applicable Foreign Security Documents, as the case may be, upon acquisition thereof) that are of the nature secured by the Security Agreement, any
Foreign Security Document or any Mortgage, as the case may be, the US Borrower will notify the Administrative Agent and the Lenders thereof, and, if requested by the Administrative Agent or the
Required Lenders, the US Borrower will cause such assets to be subjected to a Lien securing the applicable Obligations and will take, and cause the other Credit Parties to take, such actions as shall
be necessary or reasonably requested by the Administrative Agent to grant and perfect such Liens, including actions described in paragraph (a) of this Section, all at the expense of the Credit
Parties. Any Mortgage delivered to the Administrative Agent in accordance with the preceding sentence shall be accompanied by (x) a policy or policies of title insurance issued by a nationally
recognized title insurance company insuring the Lien of each Mortgage as a valid first Lien on the Mortgaged Property described therein, free of any other Liens except as expressly permitted by
Section 10.2, together with such endorsements, coinsurance and reinsurance as the Administrative 

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Agent
may reasonably request and (y) an opinion of local counsel to the Borrower (or in the event a Subsidiary of the Borrower is the Mortgagor, to such Subsidiary) substantially in the form of
Exhibit N- 10. 

        (c)   The
US Borrower agrees that, as promptly as practicable after the Closing Date (but in any event, no later than September 30, 2003) it shall cause Rockwood
Specialties GmbH to exercise its voting rights in each of Silo Pigmente GmbH and Rockwood Pigmente Holding GmbH to the effect that: 

        (i)    a
partners' resolution of Brockhues GmbH & Co. KG ("Brockhues") shall be passed to resolve that Silo Pigmente GmbH
and Rockwood Pigmente Holding GmbH may pledge all of the partners' interests in Brockhues owned by Silo Pigmente GmbH and Rockwood Pigmente Holding GmbH in favor of the Administrative Agent; and 

        (ii)   Silo
Pigmente GmbH and Rockwood Pigmente Holding GmbH shall pledge all of the partners' interests in Brockhues owned by Silo Pigmente GmbH and Rockwood Pigmente Holding
GmbH in the form substantially set out in Exhibit C-9 hereto following the partners' resolution described in paragraph (c)(i) above. 

        (d)   The
US Borrower further agrees that, as promptly as practicable after the Closing Date it shall cause Brockhues to enter into the German Conditional Security Agreements
substantially in the form attached hereto as Exhibit C-7 immediately upon satisfaction of either of the following conditions: 

        (i)    Silo
Pigmente GmbH and Rockwood Pigmente Holding GmbH hold together 100% of the partners' interests (or, following the change of legal status of Brockhues to a stock
corporation, 100% of the shares) in Brockhues; or 

        (ii)   the
legal obligation in the Federal Republic of Germany changes to the effect that in the reasonable judgment of the US Borrower, in consultation with the
Administrative Agent, the execution of the German Conditional Security Agreements by Brockhues is possible without running material legal risks under German law. 

        9.16    UK Borrower.    The Parent Companies, Holdings and the US Borrower shall ensure that the UK Borrower is on the
Closing Date, and shall at all times thereafter be, a direct wholly owned Subsidiary of the US Borrower, and the Parent Companies, Holdings and the US Borrower agree that the UK Borrower is not
permitted to be sold, transferred or otherwise disposed of pursuant to Section 10.4. 

        9.17    UK Financial Assistance.    Each of the Parent Companies, Holdings, the US Borrower and the UK Borrower will
(i) procure (to the extent it is lawful to do so) that each Subsidiary of the US Borrower transfers sufficient funds to enable the US Borrower and the UK Borrower to meet their respective
payment obligations under the Credit Documents as they fall due and (ii) ensure that all payments among the US Borrower and any of its Subsidiaries (or any of them) have been and will be made
in compliance with applicable local laws or regulations concerning financial assistance by a company for the acquisition of or subscription for its own shares or concerning the protection of
shareholders' capital. 

        9.18    Post Closing Collateral Obligations.    (a) Each of the Parent Companies, Holdings, the US Borrower
and the UK Borrower will, on or prior to September 30, 2003, (x) deliver, or cause the applicable Subsidiaries to deliver, to the Administrative Agent (i) evidence of compliance
with all of the requirements of sections 151 to 158 of the Companies Act 1985 (in effect in England) by the UK Borrower and the UK Guarantors in relation to (A) the UK Debenture, (B) the
UK Guarantee, (C) the Mortgages over any Mortgaged Property located in Scotland set forth on Schedule 1.1(b) and (D) any other Security Document to be entered into by the UK
Borrower and 

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the
UK Guarantors relating to the repayment of any amounts due under the terms of this Agreement by the UK Borrower; (ii) supplements to the UK Guarantee, executed and delivered by a duly
authorized officer of each of the UK Guarantors; (iii) the UK Debenture, executed and delivered by two duly authorized officers of each grantor party thereto; (iv) the Mortgages over any
Mortgaged Property located in Scotland set forth on Schedule 1.1(b); (v) a certificate of each UK Guarantor, dated the date of execution of such Foreign Security Documents, substantially
in the form of Exhibit O, with appropriate insertions, executed by the President or any Vice President and the Secretary or any Assistant Secretary of such Credit Party, and attaching the
documents referred to in Sections 6.8 and 6.9; and (vi) an executed legal opinion of Simpson Thacher & Bartlett LLP, special New York counsel to the US Borrower, addressed to the
Administrative Agent and the Lenders to the UK Borrower regarding the US law aspects of the supplements to the UK Guarantee, in form and substance satisfactory to the Administrative Agent and
(y) cause Section 9.15(a) to be complied with in respect of any collateral the subject of any of the foregoing agreements. Concurrently with the delivery of the UK Debenture, the
Mortgages over any Mortgaged Property located in Scotland set forth on Schedule 1.1(b) and the supplements to the UK Guarantee, the Administrative Agent shall have received (i) an
executed legal opinion of Norton Rose, English legal counsel to the Administrative Agent, addressed to the Administrative Agent and for the benefit of the Lenders to the UK Borrower regarding the UK
law aspects of the UK Debenture, the Mortgages over any Mortgaged Property located in Scotland set forth on Schedule 1.1(b) and the supplements to the UK Guarantee, in form and substance
satisfactory to the Administrative Agent; and (ii) an executed legal opinion of Burness, Scottish legal counsel to the Administrative Agent, addressed to the Administrative Agent and for the
benefit of the Lenders to the UK Borrower regarding the Scottish law aspects of the Mortgages over any Mortgaged Property located in Scotland set forth on Schedule 1.1(b), in form and substance
satisfactory to the Administrative Agent. 

        (b)   Each
of the Parent Companies, Holdings, the US Borrower and the UK Borrower will, on or prior to September 30, 2003, in respect of security interests in
collateral located in Singapore, cause (i) the Singapore Guarantee and the Singapore Security Agreement to be executed by the Singapore Guarantors and the other Restricted Subsidiaries party
thereto and (ii) Section 9.15(a) to be complied with in respect of such collateral. Concurrently with the delivery of the Singapore Guarantee and the Singapore Security Agreement, the
Administrative Agent shall have received an executed legal opinion of counsel acceptable to the Administrative Agent, acting reasonably, delivered to the Administrative Agent and for the benefit of
the Lenders to the UK Borrower in a form that is acceptable to the Administrative Agent, acting reasonably. 

        (c)   As
promptly as practicable, and in any event no later than 45 days following the Closing Date, the US Borrower shall have delivered to the Administrative Agent
the results of a search of the Uniform Commercial Code (or equivalent) filings made with respect to the Credit Parties in the jurisdictions set
forth in Schedule 9.18 and copies of the financing statements (or similar documents) disclosed by such search and evidence reasonably satisfactory to the Administrative Agent that the Liens
indicated by such financing statements (or similar documents) are permitted by the Credit Documents or have been released or terminated at the Borrower's sole cost and expense. 

        (d)   As
promptly as practicable, and in any event no later than 30 days following the Closing Date, the US Borrower shall have delivered to the Administrative Agent,
in respect of each of (x) the Mortgaged Property owned by Rockwood Pigments NA, Inc. located in Beltsville, Maryland, (y) the Mortgaged Property owned by AlphaGary Corporation
located in Leominster, Massachusetts and (z) the Mortgaged Property owned by Electrochemicals Inc. located in Maple Plain, Minnesota, a policy or policies of title insurance issued by a
nationally recognized title insurance company insuring the Lien of the Mortgage on such Mortgaged Property as a valid first 

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Lien
on the Mortgaged Property described therein, free of any other Liens except as expressly permitted by Section 10.2, together with such endorsements, coinsurance and reinsurance as the
Administrative Agent may reasonably request. 

        (e)   On
or prior to July 25, 2003, the US Borrower will execute and deliver to the Administrative Agent the Italian Share Pledge Agreements and all outstanding equity
interest in whatever form of each pledgor under the Italian Share Pledge Agreements shall have been pledged pursuant to the Italian Share Pledge Agreements and the Administrative Agent shall have
received all certificates representing securities pledged under the Italian Share Pledge Agreements, accompanied by instruments of transfer and undated stock powers endorsed in blank. Each of the
Parent Companies, Holdings, the US Borrower and the UK Borrower will, on or prior to July 25, 2003, in respect of security interests in collateral located in Italy, cause (i) the Italian
Guarantee, the Italian Trademark Pledge Agreement and the Mortgage over the Mortgaged Property located in Italy set forth on Schedule 1.1(b) to be executed by the Italian Guarantors and the
other Restricted Subsidiaries party thereto and (ii) Section 9.15(a) to be complied with in respect of such collateral. Concurrently with the delivery of the Italian Guarantee, the
Italian Trademark Pledge Agreement and the Mortgage over the Mortgaged Property located in Italy set forth on Schedule 1.1(b), the Administrative Agent shall have received executed legal
opinions of Norton Rose Studio Legale, Italian legal counsel to the Administrative Agent, substantially in the forms of Exhibit N-5, delivered to the Administrative Agent and for
the benefit of the Lenders to the UK Borrower. 

        SECTION
10.    Negative Covenants    

        Each
of the Parent Companies, Holdings, the US Borrower and the UK Borrower hereby covenant and agree that on the Closing Date and thereafter, for so long as this Agreement is in effect
and until the Commitments, the Swingline Commitment and each Letter of Credit have terminated and the Loans and Unpaid Drawings, together with interest, Fees and all other Obligations incurred
hereunder, are paid in full: 

        10.1    Limitation on Indebtedness.    (A) The US Borrower and the UK Borrower will not, and will not permit
any of the Restricted Subsidiaries to, create, incur, assume or suffer to exist any Indebtedness, except: 

        (a)   Indebtedness
arising under the Credit Documents; 

        (b)   Indebtedness
of (i) the US Borrower to any Subsidiary of the US Borrower and (ii) any Subsidiary to the US Borrower or any other Restricted Subsidiary of
the US Borrower; 

        (c)   Indebtedness
in respect of any bankers' acceptance, letter of credit, warehouse receipt or similar facilities entered into in the ordinary course of business; 

        (d)   except
as provided in clauses (j) and (k) below, Guarantee Obligations incurred by (i) Restricted Subsidiaries in respect of Indebtedness of the US
Borrower or other Restricted Subsidiaries that is permitted to be incurred under this Agreement and (ii) the US Borrower in respect of Indebtedness of the Restricted Subsidiaries that is
permitted to be incurred under this Agreement, provided that there shall be no Guarantee (a) by a Restricted Foreign Subsidiary of any
Indebtedness of the US Borrower and (b) in respect of the Permitted Subordinated Debt, unless such Guarantee is made by a Guarantor (other than Holdings) and such Guarantee is unsecured and
subordinated to the Obligations to the same extent as the applicable Permitted Subordinated Debt; 

        (e)   Guarantee
Obligations incurred in the ordinary course of business in respect of obligations of suppliers, customers, franchisees, lessors and licensees; 

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        (f)    (i) Indebtedness
(including Indebtedness arising under Capital Leases) incurred within 270 days of the acquisition, construction or improvement of fixed or
capital assets to finance the acquisition, construction or improvement of such fixed or capital assets or otherwise incurred in respect of Capital Expenditures permitted by Section 10.11,
(ii) Indebtedness arising under Capital Leases entered into in connection with Permitted Sale Leasebacks and (iii) Indebtedness arising under Capital Leases, other than Capital Leases in
effect on the date hereof and Capital Leases entered into pursuant to subclauses (i) and (ii) above, provided that the aggregate amount of
Indebtedness incurred pursuant to this subclause (iii) shall not exceed $25,000,000 at any time outstanding, and (iv) any refinancing, refunding, renewal or extension of any Indebtedness
specified in subclause (i), (ii) or (iii) above, provided that the principal amount thereof is not increased above the principal amount thereof outstanding immediately prior to such
refinancing, refunding, renewal or extension; 

        (g)   Indebtedness
outstanding on the date hereof and listed on Schedule 10.1 and any refinancing, refunding, renewal or extension thereof,  provided that (i) the principal amount thereof is not increased above
the principal amount thereof outstanding immediately prior to such
refinancing, refunding, renewal or extension, except to the extent otherwise permitted hereunder and (ii) the direct and contingent obligors with respect to such Indebtedness are not changed; 

        (h)   Indebtedness
in respect of Hedge Agreements; 

        (i)    Indebtedness
in respect of Permitted Subordinated Debt; 

        (j)    (i) Indebtedness
of a Person or Indebtedness attaching to assets of a Person that, in either case, becomes a Restricted Subsidiary or Indebtedness attaching to
assets that are acquired by the US Borrower or any Restricted Subsidiary, in each case after the Closing Date as the result of a Permitted Acquisition,  provided that (w) such Indebtedness existed
at the time such Person became a Restricted Subsidiary or at the time such assets were acquired and,
in each case, was not created in anticipation thereof, (x) such Indebtedness is not guaranteed in any respect by the US Borrower or any Restricted Subsidiary (other than any such person that so
becomes a Restricted Subsidiary), (y)(A) the capital stock of such Person is pledged to the Administrative Agent to the extent required under Section 9.12 and (B) such Person executes a
supplement to each of the Guarantee, the Security Agreement, the applicable Foreign Guarantee and/or the applicable Foreign Security Documents and the Pledge Agreement (or alternative guarantee and
security arrangements in relation to the Obligations) to the extent required under Sections 9.11 or 9.12, as applicable, provided that the
requirements of this subclause (y) shall not apply to an aggregate amount at any time outstanding of up to (and including) the Guarantee and Collateral Exception Amount at such time of the
aggregate of (1) such Indebtedness and (2) all Indebtedness as to which the proviso to clause (k)(i)(y) below then applies, and (z) the aggregate amount of such
Indebtedness and all Indebtedness incurred under clause (k) below, when taken together, does not exceed $150,000,000 in the aggregate at any time outstanding, and (ii) any refinancing,
refunding, renewal or extension of any Indebtedness specified in subclause (i) above, provided that, except to the extent otherwise permitted
hereunder, (x) the principal amount of any such Indebtedness is not increased above the principal amount thereof outstanding immediately prior to such refinancing, refunding, renewal or
extension and (y) the direct and contingent obligors with respect to such Indebtedness are not changed; 

        (k)   (i) Indebtedness
of the US Borrower or any Restricted Subsidiary incurred to finance a Permitted Acquisition,  provided that (x) such Indebtedness is not guaranteed in any respect by any Restricted Subsidiary (other
than any Person acquired (the
"acquired Person") as a result of such Permitted Acquisition or the Restricted Subsidiary so incurring such 

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Indebtedness)
or, in the case of Indebtedness of any Restricted Subsidiary, by the US Borrower, (y)(A) the US Borrower pledges the capital stock of such acquired Person to the Administrative Agent to
the extent required under Section 9.12 and (B) such acquired Person executes a supplement to the Guarantee, the Security Agreement, the applicable Foreign Guarantee and/or the applicable
Foreign Security Documents and the Pledge Agreement (or alternative guarantee and security arrangements in relation to the Obligations) to the extent required under Sections 9.11 or 9.12, as
applicable, provided that the requirements of this subclause (y) shall not apply to an aggregate amount at any time outstanding of up to (and
including) the amount of the Guarantee and Collateral Exception Amount at such time of the aggregate of (1) such Indebtedness and (2) all Indebtedness as to which the proviso to
clause (j)(i)(y) above then applies, and (z) the aggregate amount of such Indebtedness and all Indebtedness assumed or permitted to exist under clause (j) above, when taken
together, does not exceed $150,000,000 in the aggregate at any time outstanding, and (ii) any refinancing, refunding, renewal or extension of any Indebtedness specified in subclause
(i) above, provided that (x) the principal amount of any such Indebtedness is not increased above the principal amount thereof outstanding
immediately prior to such refinancing, refunding, renewal or extension and (y) the direct and contingent obligors with respect to such Indebtedness are not changed, except to the extent
otherwise permitted hereunder; 

        (l)    Indebtedness
of Restricted Foreign Subsidiaries in an aggregate amount at any time outstanding not to exceed $50,000,000  minus (ii) the amount, if any, by which the aggregate amount of Indebtedness incurred and
outstanding at such time pursuant to clause (n)
below exceeds $100,000,000; 

        (m)  (i) Indebtedness
incurred in connection with any Permitted Sale Leaseback and (ii) any refinancing, refunding, renewal or extension of any Indebtedness
specified in subclause (i) above, provided that, except to the extent otherwise permitted hereunder, (x) the principal amount of any such
Indebtedness is not increased above the principal amount thereof outstanding immediately prior to such refinancing, refunding, renewal or extension and (y) the direct and contingent obligors
with respect to such Indebtedness are not changed; 

        (n)   (i) additional
Indebtedness, provided that the aggregate amount of Indebtedness incurred and remaining outstanding
pursuant to this clause (n) shall not at any time exceed the sum of (x) $100,000,000 and (y) the amount, if any, by which $50,000,000 exceeds the aggregate amount of Indebtedness
then outstanding under clause (1) above, and (ii) any refinancing, refunding, renewal or extension of any Indebtedness specified in subclause (i) above; and 

        (o)   Indebtedness
in respect of Permitted Additional Subordinated Notes to the extent that the Net Cash Proceeds therefrom are, immediately after the receipt thereof, applied
to the prepayment of Term Loans in accordance with Section 5.2. 

        (B)  Holdings
will not create, incur, assume or suffer to exist any Indebtedness except (a) Indebtedness created under the Loan Documents, (b) the New Senior
Notes and (c) the guarantee obligations of Holdings of the Subordinated Notes under the Subordinated Note Indenture (provided that Holdings shall
not guarantee the Subordinated Notes unless (i) Holdings also has guaranteed the Obligations pursuant to the Guarantee, (ii) such guarantee of the Subordinated Notes is unsecured and
subordinated to such guarantee of the Obligations on terms no less favorable to the Lenders than the subordination provisions of the Subordinated Notes and (iii) such guarantee of the
Subordinated Notes provides for the release and termination thereof, without action by any party, upon any release and termination of such guarantee of the Obligations). 

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        (C)  PIK
Holdco will not create, incur, assume or suffer to exist any Indebtedness except (a) the Permitted PIK Debt and (b) Permitted Additional PIK Notes to
the extent that (i) the Net Cash Proceeds therefrom are, immediately after the receipt thereof, contributed by PIK Holdco to Holdings in cash as common equity and used by Holdings to make a PIK
Proceeds Equity Contribution and (ii) the Net Cash Proceeds of such PIK Proceeds Equity Contribution are, immediately after the receipt thereof, applied by the US Borrower to prepay Term Loans
in accordance with Section 5.2. 

        (D)  Parent
will not create, incur, assume or suffer to exist any Indebtedness. 

        (E)  None
of the Parent Companies, Holdings or the US Borrower will, nor will they permit any Subsidiary to, issue any preferred stock or other preferred equity interests,
other than Qualified Preferred Stock. 

        10.2    Limitation on Liens.    (A) The US Borrower and the UK Borrower will not, and will not permit any of
the Restricted Subsidiaries to, create, incur, assume or suffer to exist any Lien upon any property or assets of any kind (real or personal, tangible or intangible) of the US Borrower or any
Restricted Subsidiary, whether now owned or hereafter acquired, except: 

        (a)   Liens
arising under the Credit Documents; 

        (b)   Permitted
Liens; 

        (c)   Liens
securing Indebtedness permitted pursuant to Section 10.1(f), provided that such Liens attach at all times only to the assets so financed; 

        (d)   Liens
existing on the date hereof and listed on Schedule 10.2; 

        (e)   the
replacement, extension or renewal of any Lien permitted by clauses (a) through (d) above and clauses (f) and (g) of this
Section 10.2 upon or in the same assets theretofore subject to such Lien or the replacement, extension or renewal (without increase in the amount or change in any direct or
contingent obligor except to the extent otherwise permitted hereunder) of the Indebtedness secured thereby; 

        (f)    Liens
existing on the assets of any Person that becomes a Restricted Subsidiary, or existing on assets acquired, pursuant to a Permitted Acquisition to the extent the
Liens on such assets secure Indebtedness permitted by Section 10.1(j), provided that such Liens attach at all times only to the same assets that
such Liens attached to, and secure only the same Indebtedness that such Liens secured, immediately prior to such Permitted Acquisition; 

        (g)   (i) Liens
placed upon the capital stock of any Restricted Subsidiary acquired pursuant to a Permitted Acquisition to secure Indebtedness of the US Borrower or any
other Restricted Subsidiary incurred pursuant to Section 10.1(k) in connection with such Permitted Acquisition and (ii) Liens placed upon the assets of such Restricted Subsidiary to
secure a guarantee by such Restricted Subsidiary or any such Indebtedness of the US Borrower or any other Restricted Subsidiary; and 

        (h)   additional
Liens so long as the aggregate principal amount of the obligations so secured does not exceed $25,000,000 at any time outstanding. 

        (B)  None
of the Parent Companies or Holdings will create, incur, assume or suffer to exist any Lien on any property or asset now owned or hereafter acquired by it, or assign
or sell any income or revenues (including accounts receivable) or rights in respect thereof, except (a) liens of the nature set forth in clauses (a), (c) and (h) of the definition
of the term "Permitted Liens" and (b) in the case of Holdings, Liens created under the Pledge Agreement. 

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        10.3    Limitation on Fundamental Changes.    (A) Except as expressly permitted by Section 10.4 or 10.5,
each of the Parent Companies, Holdings, the US Borrower and the UK Borrower will not, and will not permit any of the Restricted Subsidiaries to, enter into any merger, consolidation or amalgamation,
or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), or convey, sell, lease, assign, transfer or otherwise dispose of, all or substantially all its business units,
assets or other properties, except that: 

        (a)   any
Subsidiary of the US Borrower or any other Person may be merged or consolidated with or into the US Borrower,  provided that (i) the US Borrower shall be the continuing or surviving corporation or
the Person formed by or surviving any such merger or
consolidation (if other than the US Borrower) shall be an entity organized or existing under the laws of the United States, any state thereof, the District of Columbia or any territory thereof (the US
Borrower or such Person, as the case may be, being herein referred to as the "Successor Borrower"), (ii) the Successor Borrower (if other than
the US
Borrower) shall expressly assume all the obligations of the US Borrower under this Agreement and the other Credit Documents pursuant to a supplement hereto or thereto in form reasonably satisfactory
to the Administrative Agent, (iii) no Default or Event of Default would result from the consummation of such merger or consolidation, (iv) the Successor Borrower shall be in compliance,
on a pro forma basis after giving effect to such merger or consolidation, with the covenants set forth in Sections 10.9 and 10.10, as such covenants are recomputed as at the last day of the most
recently ended Test Period under such Section as if such merger or consolidation had occurred on the first day of such Test Period, (v) each Guarantor, unless it is the other party to such
merger or consolidation, shall have by a supplement to the Guarantee confirmed that its Guarantee shall apply to the Successor Borrower's obligations under this Agreement, (vi) each Subsidiary
grantor and each Subsidiary pledgor, unless it is the other party to such merger or consolidation, shall have by a supplement to the Security Agreement or the Pledge Agreement, as applicable,
confirmed that its obligations thereunder shall apply to the Successor Borrower's obligations under this Agreement, (vii) each mortgagor of a Mortgaged Property, unless it is the other party to
such merger or consolidation, shall have by an amendment to or restatement of the applicable Mortgage confirmed that its obligations thereunder shall apply to the Successor Borrower's obligations
under this Agreement, and (viii) the US Borrower shall have delivered to the Administrative Agent an officer's certificate and an opinion of counsel, each stating that such merger or
consolidation and such supplement to this Agreement or any Security Document comply with this Agreement; provided further that if the foregoing are
satisfied, the Successor Borrower (if other than the US Borrower) will succeed to, and be substituted for, the US Borrower under this Agreement; 

        (b)   any
Subsidiary of the UK Borrower or any other Person may be merged or consolidated with or into the UK Borrower,  provided that (i) the UK Borrower shall be the continuing or surviving corporation or
the Person formed by or surviving any such merger or
consolidation (if other than the UK Borrower) shall be a corporation organized or existing under the laws of England and Wales (the UK Borrower or such Person, as the case may be, being herein
referred to as the "Successor UK Borrower"), (ii) the Successor UK Borrower (if other than the UK Borrower) shall expressly assume all the
obligations of the UK Borrower under this Agreement and the other Credit Documents pursuant to a supplement hereto or thereto in form reasonably satisfactory to the Administrative Agent,
(iii) no Default or Event of Default would result from the consummation of such merger or consolidation, (iv) the US Borrower shall be in compliance, on a pro forma basis after giving
effect to such merger or consolidation, with the covenants set forth in Sections 10.9 and 10.10, as such covenants are recomputed as at the last day of the most recently ended Test Period under such
Section as if such merger or consolidation had occurred on the first day of such Test Period, (v) the US 

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Borrower,
each Guarantor and each Foreign Subsidiary Guarantor, unless it is the other party to such merger or consolidation, shall have by a supplement to the Guarantee or Foreign Subsidiary
Guarantee, as the case may be, confirmed that its Guarantee or Foreign Subsidiary Guarantee, as the case may be, shall apply to the Successor UK Borrower's obligations under this Agreement,
(vi) each grantor and each pledgor, unless it is the other party to such merger or consolidation, shall have by a supplement to the applicable Security Document confirmed that its obligations
thereunder shall apply to the Successor UK Borrower's obligations under this Agreement, (vii) each mortgagor of a Mortgaged Property, unless it is the other party to such merger or
consolidation, shall have by an amendment to or restatement of the applicable Mortgage confirmed that its obligations thereunder shall apply to the Successor UK Borrower's obligations under this
Agreement, and (viii) the UK Borrower shall have delivered to the Administrative Agent an officer's certificate and an opinion of counsel, each stating that such merger or consolidation, such
supplement to this Agreement or any Security Document and such amendment or restatement to any applicable Mortgage, as the case may be, comply with this Agreement; provided
further that if the foregoing are satisfied, the Successor UK Borrower (if other than the UK Borrower) will succeed to, and be substituted for, the UK Borrower under this
Agreement; 

        (c)   any
Subsidiary of the US Borrower (other than the UK Borrower) or any other Person may be merged or consolidated with or into any one or more Subsidiaries of the US
Borrower (other than the UK Borrower), provided that (i) in the case of any merger or consolidation involving one or more Restricted
Subsidiaries, (A) a Restricted Subsidiary shall be the continuing or surviving corporation or (B) the US Borrower shall take all steps necessary to cause the Person formed by or
surviving any such merger or consolidation (if other than a Restricted Subsidiary) to become a Restricted Subsidiary, (ii) in the case of any merger or consolidation involving one or more
Guarantors and/or Foreign Subsidiary Guarantors, as the case may be, a Guarantor or Foreign Subsidiary Guarantor, as the case may be, shall be the continuing or surviving corporation or the Person
formed by or surviving any such merger or consolidation (if other than a Guarantor or Foreign Subsidiary Guarantor, as the case may be) shall execute a supplement to the Guarantee Agreement, the
Pledge Agreement and the Security Agreement and any applicable Mortgage or the analogous Foreign Security Documents, as the case may be, in form and substance reasonably satisfactory to the
Administrative Agent in order to become a Guarantor or Foreign Subsidiary Guarantor, as the case may be, and pledgor, mortgagor and grantor of Collateral for the benefit of the Secured Parties,
(iii) no Default or Event of Default would result from the consummation of such merger or consolidation, (iv) the US Borrower shall be in compliance, on a pro forma basis after giving
effect to such merger or consolidation, with the covenants set forth in
Sections 10.9 and 10.10, as such covenants are recomputed as at the last day of the most recently ended Test Period under such Section as if such merger or consolidation had occurred on the first day
of such Test Period, and (v) the US Borrower shall have delivered to the Administrative Agent an Officers' Certificate stating that such merger or consolidation and such supplements to any
Security Document comply with this Agreement; 

        (d)   any
Restricted Subsidiary that is not a Guarantor or a Foreign Subsidiary Guarantor may sell, lease, transfer or otherwise dispose of any or all of its assets (upon
voluntary liquidation or otherwise) to the US Borrower, the UK Borrower, a Guarantor, a Foreign Subsidiary Guarantor or any other Restricted Subsidiary of the US Borrower; 

        (e)   any
Guarantor or any Foreign Subsidiary Guarantor may sell, lease, transfer or otherwise dispose of any or all of its assets (upon voluntary liquidation or otherwise) to
the US Borrower, the UK Borrower or any other Guarantor or Foreign Subsidiary Guarantor; and 

83

 

        (f)    any
Restricted Subsidiary (other than the UK Borrower) may liquidate or dissolve if (x) the US Borrower determines in good faith that such liquidation or
dissolution is in the best interests of the US Borrower and is not materially disadvantageous to the Lenders and (y) to the extent such Restricted Subsidiary is a Credit Party, any assets or
business not otherwise disposed of or transferred in accordance with Section 10.4 or 10.5, or, in the case of any such business, discontinued, shall be transferred to, or otherwise owned or
conducted by, another Credit Party after giving effect to such liquidation or dissolution. 

        (B)  Holdings
will not engage in any business or activity other than (a) the ownership of all the outstanding shares of capital stock of the US Borrower,
(b) maintaining its corporate existence, (c) participating in tax, accounting and other administrative matters as a member of the consolidated group of Parent, (d) the performance
of the Credit Documents to which it is a party, (e) making any Dividend permitted by Section 10.6 or holding any cash received in connection with Dividends made by the US Borrower in
accordance with Section 10.6 pending application thereof by Holdings in the manner contemplated by Section 10.6, (f) the performance of the New Senior Notes Indenture and
(g) activities incidental to the businesses or activities described in clauses (a) to (f) of this Section 10.3(B). Holdings will not own or acquire any assets (other than
shares of capital stock of the US Borrower, cash and Permitted Investments) or incur any liabilities (other than liabilities under the Credit Documents, liabilities under its guarantee of the
Subordinated Notes, liabilities under the New Senior Notes Indenture and liabilities imposed by law, including tax liabilities, and other liabilities incidental to its existence and business and
activities permitted by this Agreement). 

        (C)  PIK
Holdco will not engage in any business or activity other than (a) the ownership of all the outstanding shares of capital stock of Holdings,
(b) maintaining its corporate existence, (c) participating
in tax, accounting and other administrative matters as a member of the consolidated group of Parent, (d) the performance of the PIK Notes Documents, (e) making any Dividend permitted by
Section 10.6 or holding any cash received in connection with Dividends made by Holdings in accordance with Section 10.6 pending application thereof by PIK Holdco in the manner
contemplated by Section 10.6, (f) the issuance of Qualified Preferred Stock pursuant to Section 10.1(E) and (g) activities incidental to the businesses or activities
described in clauses (a) to (f) of this Section 10.3(C). PIK Holdco will not own or acquire any assets (other than shares of capital stock of Holdings and cash) or incur any
liabilities (other than liabilities under the PIK Notes Documents, liabilities imposed by law, including tax liabilities, and other liabilities incidental to its existence and business and activities
permitted by this Agreement). 

        (D)  Parent
will not engage in any business or activity other than (a) the ownership of all the outstanding shares of capital stock of PIK Holdco,
(b) maintaining its corporate existence, (c) participating in tax, accounting and other administrative matters as a member of the consolidated group of Parent, (d) making any
Dividend permitted by Section 10.6 or holding any cash received in connection with Dividends made by PIK Holdco in accordance with Section 10.6 pending application thereof by Parent in
the manner contemplated by Section 10.6, (e) the issuance of Qualified Preferred Stock pursuant to Section 10.1(E) and (f) activities incidental to the businesses and
activities described in clauses (a) to (e) of this Section 10.3(D). Parent will not own or acquire any assets (other than shares of capital stock of PIK Holdco and cash) or incur
any liabilities (other than liabilities imposed by law, including tax liabilities, and other liabilities incidental to its existence and business and activities permitted by this Agreement). 

        (E)  Notwithstanding
anything contained in paragraphs (A), (B), (C) and (D) of this Section 10.3, any Parent Company may be merged or consolidated into
any other Parent Company, provided that (a) no Default or Event of Default, and no default or event of default (or similar event, however
designated) under the New Senior Notes Indenture or the PIK Notes Documents, 

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would
result from the consummation of such merger or consolidation and (b) such merger or consolidation would not result in a Material Adverse Effect. 

        (F)  Notwithstanding
anything contained in paragraphs (C) and (D) of this Section 10.3, each of the Parent Companies shall be entitled to form one or
more wholly owned direct or indirect Subsidiaries, in each case that shall be direct or indirect parent companies of Holdings, provided that each such
Subsidiary shall be subject to the restrictions set forth in sections 10.1(D), 10.2(B) and 10.3(D), mutatis mutandis. 

        10.4    Limitation on Sale of Assets.    Each of the Parent Companies, Holdings, the US Borrower and the UK Borrower
will not, and will not permit any of the Restricted Subsidiaries to, (i) convey, sell, lease, assign, transfer or otherwise dispose of any of its property, business or assets (including
receivables and leasehold interests), whether now owned or hereafter acquired (other than any such sale, transfer, assignment or other disposition resulting from any casualty or condemnation, of any
assets of the US Borrower or the Restricted Subsidiaries) or (ii) sell to any Person (other than the US Borrower, a
Guarantor or a Restricted Foreign Subsidiary) any shares owned by it of any Restricted Subsidiary's capital stock, except that: 

        (a)   the
US Borrower and the Restricted Subsidiaries may sell, transfer or otherwise dispose of used or surplus equipment, vehicles, inventory and other assets in the
ordinary course of business; 

        (b)   the
US Borrower and the Restricted Subsidiaries may sell, transfer or otherwise dispose of other assets (other than accounts receivable) for fair value,  provided that (i) the aggregate amount of such
sales, transfers and disposals by the US Borrower and the Restricted Subsidiaries, taken as a
whole, pursuant to this clause (b) shall not exceed in the aggregate $200,000,000, (ii) any consideration in excess of $5,000,000 received by the US Borrower or any Guarantor in
connection with such sales, transfers and other dispositions of assets pursuant to this clause (b) that is in the form of Indebtedness shall be pledged to the Administrative Agent pursuant to
Section 9.12, (iii) with respect to any such sale, transfer or disposition (or series of related sales, transfers or dispositions) in an aggregate amount in excess of $10,000,000 the US
Borrower shall be in compliance, on a pro forma basis after giving effect to such sale, transfer or disposition, with the covenants set forth in Sections 10.9 and 10.10, as such covenants are
recomputed as at the last day of the most recently ended Test Period under such Sections as if such sale, transfer or disposition had occurred on the first day of such Test Period and
(iv) after giving effect to any such sale, transfer or disposition, no Default or Event of Default shall have occurred and be continuing; 

        (c)   the
US Borrower and the Restricted Subsidiaries may make sales of assets to the US Borrower or to any Restricted Subsidiary,  provided that any such sales to Restricted Foreign Subsidiaries shall be for fair
value; 

        (d)   any
Restricted Subsidiary may effect any transaction permitted by Section 10.3; and 

        (e)   in
addition to selling or transferring accounts receivable pursuant to the other provisions hereof, the US Borrower and the Restricted Subsidiaries may (i) sell
or discount without recourse accounts receivable arising in the ordinary course of business in connection with the compromise or collection thereof and (ii) sell or transfer accounts receivable
and related rights pursuant to customary receivables financing facilities so long as, in the case of clauses (i) and (ii), the Net Cash Proceeds thereof to the US Borrower and its Restricted
Subsidiaries (except in the case of transactions permitted by Section 10.4(e)(i) to the extent the Net Cash Proceeds of any such transaction do not exceed $10,000) are promptly applied
to the prepayment and/or commitment reductions as provided for in Section 5.2. 

85

 

        10.5    Limitation on Investments.    The US Borrower will not, and will not permit any of the Restricted Subsidiaries
to, make any advance, loan, extensions of credit or capital contribution to, or purchase any stock, bonds, notes, debentures or other securities of or any assets of, or make any other investment in,
any Person, except: 

        (a)   extensions
of trade credit and asset purchases in the ordinary course of business; 

        (b)   Permitted
Investments; 

        (c)   loans
and advances to officers, directors and employees of Parent or any of its Subsidiaries (i) to finance the purchase of capital stock of Parent
(provided that the amount of such loans and advances used to acquire such capital stock shall be contributed by Holdings to the US Borrower in cash as
common equity using the proceeds of prior contributions of common equity by Parent to PIK Holdco and by PIK Holdco to Holdings, respectively) and (ii) for additional purposes not contemplated
by subclause (i) above in an aggregate principal amount at any time outstanding with respect to this clause (ii) not exceeding $10,000,000; 

        (d)   investments
existing on the date hereof and listed on Schedule 10.5 and any extensions, renewals or reinvestments thereof, so long as the aggregate amount of all
investments pursuant to this clause (d) is not increased at any time above the amount of such investments existing on the date hereof; 

        (e)   investments
in Hedge Agreements permitted by Section 10.1(h); 

        (f)    investments
received in connection with the bankruptcy or reorganization of suppliers or customers and in settlement of delinquent obligations of, and other disputes
with, customers arising in the ordinary course of business; 

        (g)   investments
to the extent that payment for such investments is made solely with capital stock of any of the Parent Companies; 

        (h)   investments
constituting non-cash proceeds of sales, transfers and other dispositions of assets to the extent permitted by Section 10.4; 

        (i)    investments
in any Guarantor (other than Holdings), the US Borrower, the UK Borrower or any Foreign Subsidiary Guarantor; 

        (j)    investments
constituting Permitted Acquisitions, provided that the aggregate amount of any such investment, as valued at
the fair market value of such investment at the time each such investment is made, made by the US Borrower or any Restricted Subsidiary in any Restricted Foreign Subsidiary, to the extent that such
Restricted Foreign Subsidiary does not become a Foreign Subsidiary Guarantor pursuant to Section 9.11 and does not enter into the guarantee and collateral arrangements contemplated thereby,
shall not exceed the Available Amount at the time of such investment plus an amount equal to any repayments, interest, returns, profits, distributions, income and similar amounts actually received in
cash in respect of any such investment (which amount shall not exceed the amount of such investment valued at the fair market value of such investment at the time such investment was made); 

        (k)   investments
in the equity interests of one or more newly formed persons that are received in consideration of the contribution by the US Borrower or its applicable
Restricted Subsidiaries of assets (including capital stock) to such person or persons, provided that (i) the fair market value of such assets, determined on arms-length basis, so
contributed pursuant to this paragraph (k) shall not in the aggregate exceed $50,000,000, (ii) with respect to investments in Foreign Joint Ventures, the sum of all investments in
Foreign Joint Ventures made pursuant to this Section 10.5 (k) prior to the date thereof and all investment in Foreign Joint Ventures made pursuant to Section 10.5(m) below prior
to the date thereof, when taken 

86

 

together,
as valued at the fair market value of such investment at the time each such investment is made, does not exceed $100,000,000 plus an amount equal to any repayments, interest, returns,
profits, distributions, income and similar amounts actually received in cash in respect of any such investment (which amount shall not exceed the amount of such investment valued at the fair market
value of such investment at the time such investment was made) in the aggregate and (iii) in respect of each such contribution, an Authorized Officer of the US Borrower shall certify, in a form
to be agreed upon by the US Borrower and the Administrative Agent (x) after giving effect to such contribution, no Default or Event of Default shall have occurred and be continuing,
(y) the fair market value of the assets so contributed and (z) that the requirements of paragraph (i) of this proviso remain satisfied; 

        (l)    investments
made to repurchase or retire common stock of Parent owned by any employee stock ownership plan or key employee stock ownership plan of the Parent Companies,
Holdings or the US Borrower; 

        (m)  additional
investments (including investments in Minority Investments and Unrestricted Subsidiaries), as valued at the fair market value of such investment at the time
each such investment is made, in an aggregate amount at the time of such investment not in excess of the Available Amount at such time plus an amount equal to any repayments, interest, returns,
profits, distributions, income and similar amounts actually received in cash in respect of any such investment (which amount shall not exceed the amount of such investment valued at the fair market
value of such investment at the time such investment was made), provided, that with respect to investments in Foreign Joint Ventures, the sum of all investments in Foreign Joint Ventures made pursuant
to Section 10.5 (k) above prior to the date thereof and all investment in Foreign Joint Ventures made pursuant to this Section 10.5(m) prior
to the date thereof, when taken together, as valued at the fair market value of such investment at the time each such investment is made, does not exceed $100,000,000 plus an amount equal to any
repayments, interest, returns, profits, distributions, income and similar amounts actually received in cash in respect of any such investment (which amount shall not exceed the amount of such
investment valued at the fair market value of such investment at the time such investment was made) in the aggregate; 

        (n)   investments
permitted under Section 10.6; and 

        (o)   contributions
to a "rabbi" trust within the meaning of Revenue Procedure 92-64 or contributions to a trust which is qualified under Section 401(a) of
the Code or other grantor trust subject to the claims of creditors in the case of a bankruptcy of the US Borrower. 

        10.6    Limitation on Dividends.    None of the Parent Companies, Holdings or the US Borrower will declare or pay any
dividends (other than, (a) in respect of any of the Parent Companies or Holdings, dividends payable solely in its capital stock or rights, warrants or options to purchase its capital stock and
(b) in respect of the US Borrower, dividends payable solely in its capital stock) or return any capital to its stockholders or make any other distribution, payment or delivery of property or
cash to its stockholders as such, or redeem, retire, purchase or otherwise acquire, directly or indirectly, for consideration, any shares of any class of its capital stock or the capital stock of any
direct or indirect parent now or hereafter outstanding (or any options or warrants or stock appreciation rights issued with respect to any of its capital stock), or set aside any funds for any of the
foregoing purposes, or permit any of the Restricted Subsidiaries to purchase or otherwise acquire for consideration (other than in connection with an investment permitted by Section 10.5) any
shares of any class of the capital stock of any of the Parent Companies, Holdings or the US Borrower, now or hereafter outstanding (or any options or warrants or stock appreciation rights issued with
respect to any of its capital stock) (all of the foregoing "Dividends"), provided that, so long as no
Default or Event of Default exists or would exist after 

87

 

giving
effect thereto, (a) any of the Parent Companies, Holdings or the US Borrower may redeem in whole or in part any of its capital stock for another class of capital stock or rights to
acquire its capital stock or with proceeds from substantially concurrent equity contributions or issuances of new shares of its capital stock, provided
that such other class of capital stock contains terms and provisions at least as advantageous to the Lenders in all respects material to their interests as those contained in the capital stock
redeemed thereby, (b) any of the Parent Companies or Holdings may repurchase shares of its capital stock (or any options or warrants or stock appreciation rights issued with respect to any of
its capital stock) held by officers, directors and employees of Parent and its Subsidiaries, with the proceeds of dividends from, seriatim, the US Borrower, Holdings and PIK Holdco, as applicable,
which shall also be permitted, so long as such repurchase is pursuant to, and in accordance with the terms of, management and/or employee stock plans, stock subscription agreements or shareholder
agreements, (c) the US Borrower and the Restricted Subsidiaries may make investments permitted by Section 10.5, (d) Parent may declare and pay dividends on its capital stock, with
the proceeds of dividends from, seriatim, the US Borrower, Holdings and PIK Holdco, which shall also be permitted, provided that (i) the
aggregate amount of such dividends paid by Parent pursuant to this clause (d) shall not at any time exceed 50% of Cumulative Consolidated Net Income Available to Stockholders at such time less
the amount of dividends previously paid pursuant to this clause (d) following the last day of the most recent fiscal quarter for which Section 9.1 Financials have been delivered to the
Lenders under Section 9.1 and (ii) at the time of the payment of any such dividends and after giving effect thereto, the Consolidated Total Debt to Consolidated EBITDA Ratio on the date
of such payment of such dividends shall be less than 3.50:1.00, (e) the US Borrower, Holdings and PIK Holdco may declare and pay dividends and/or make distributions on its capital stock, as
applicable, the proceeds of which will be used by Parent solely to pay taxes of Parent, PIK Holdco, Holdings, the US Borrower and the Subsidiaries as part of a consolidated tax filing group, along
with franchise taxes, administrative and similar expenses related to its existence and ownership of PIK Holdco, Holdings, the US Borrower, as applicable,  provided that the amount of such dividends does
not exceed in any fiscal year the amount of such taxes and expenses payable for such fiscal year (it
being understood that such expenses shall in no event exceed $1,000,000 in the aggregate per fiscal year), (f) the US Borrower may declare and pay dividends and/or make distributions on its
capital stock, the proceeds of which will be used by Holdings solely to pay cash interest, if any, of the New Senior Notes as and to the extent that payment of such interest in cash is required by the
New Senior Notes Indenture and (g) the US Borrower and Holdings may declare and pay dividends and/or make distributions on its capital stock, as applicable, from Available Excess Cash Flow, the
proceeds of which will be used by Holdings and PIK Holdco solely to redeem, repurchase or retire New Senior Notes or PIK Notes if (x) at the time of the payment of such dividends and after
giving effect thereto the Consolidated Total Debt to Consolidated EBITDA Ratio
on the date of such payment of such dividends shall be less than 2.25 to 1.00 and (y) the US Borrower applies an amount equal to the proceeds used for such redemption, repurchase or retirement
of New Senior Notes or PIK Notes to prepay Term Loans outstanding hereunder in accordance with Section 5.1 hereof on the date of any such redemption, repurchase or retirement of New Senior
Notes or PIK Notes (except to the extent that the US Borrower has already applied not less than 50.0% of the cumulative amount of Excess Cash Flow for all fiscal years completed after the Closing Date
and prior to the date of such redemption, repurchase or retirement of New Senior Notes or PIK Notes pursuant to Section 5.1 or Section 5.2 hereof). 

        10.7    Limitations on Debt Payments and Amendments.    (a) Neither PIK Holdco, Holdings nor the US Borrower,
as applicable, will prepay, repurchase or redeem or otherwise defease any Subordinated Notes, any New Senior Notes or any PIK Notes, as applicable (it being understood that any payment of principal
prior to May 15, 2011, in the case of Subordinated Notes, August 15, 2011, in the case of New Senior Notes, and November 20, 2011, in the case of PIK Notes, 

88

 

respectively,
shall be deemed a prepayment for purposes of this Section 10.7); provided, however,
that so long as no Default or Event of Default has occurred and is continuing, the US Borrower may prepay, repurchase or redeem Subordinated Notes (x) for an aggregate price not in excess of
the Available Amount at the time of such prepayment, repurchase or redemption, provided that to the extent the Available Amount so utilized is
attributable to Excess Cash Flow in accordance with clause (a)(iii) of the definition of "Available Amount", the US Borrower applies an amount equal to the proceeds used for such
prepayment, repurchase or redemption of Subordinated Notes to prepay Term Loans outstanding hereunder in accordance with Section 5.1 hereof on the date of any such prepayment, repurchase or
redemption of Subordinated Notes (except to the extent that the US Borrower has already applied not less than 50.0% of the cumulative amount of Excess Cash Flow for all fiscal years completed after
the Closing Date and prior to the date of such prepayment, repurchase or redemption of Subordinated Notes pursuant to Section 5.1 or Section 5.2 hereof) or (y) with the proceeds
of subordinated Indebtedness that (1) is permitted by Section 10.1 (other than Permitted Additional Subordinated Notes) and (2) has terms material to the interests of the Lenders
not materially less advantageous to the Lenders than those of the Subordinated Notes; provided, further,
that so long as no Default or Event of Default has occurred and is continuing, PIK Holdco and Holdings may prepay, repurchase or redeem New Senior Notes and PIK Notes, as applicable, (x) from
the proceeds of Dividends received in accordance with Section 10.6(g) or (y) from the amount of any capital contributions (other than the Investor Equity Contribution and any PIK
Proceeds Equity Contribution) made in cash to PIK Holdco or Holdings from and including the Business Day immediately following the Closing Date through and including the date of such redemption,
repurchase or retirement, including contributions with the proceeds from any issuance of equity securities by any of the Parent Companies or Holdings. 

        (b)   PIK
Holdco and Holdings, as applicable, will not pay any interest in cash on (x) any PIK Notes prior to November 20, 2011 or (y) any New Senior
Notes prior to August 15, 2007. 

        (c)   Neither
the US Borrower, Holdings nor PIK Holdco, as applicable, will waive, amend, modify, terminate or release the Subordinated Note Indenture, the New Senior Notes
Indenture or any PIK
Notes Documents to the extent that any such waiver, amendment, modification, termination or release would be adverse to the Lenders in any material respect. 

        10.8    Limitations on Sale Leasebacks.    The US Borrower will not, and will not permit any of the Restricted
Subsidiaries to, enter into or effect any Sale Leasebacks, other than Permitted Sale Leasebacks. 

        10.9    Consolidated Total Debt to Consolidated EBITDA Ratio.    The Parent Companies, Holdings and the US Borrower
will not permit the Consolidated Total Debt to Consolidated 

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EBITDA
Ratio for any Test Period ending during any period set forth below to be greater than the ratio set forth below opposite such period: 

	Period
	 	Ratio

	April 1, 2003 to March 31, 2004	 	5.95 to 1.00
	April 1, 2004 to June 30, 2004	 	5.75 to 1.00
	July 1, 2004 to September 30, 2004	 	5.50 to 1.00
	October 1, 2004 to March 31, 2005	 	5.25 to 1.00
	April 1, 2005 to September 30, 2005	 	5.00 to 1.00
	October 1, 2005 to March 31, 2006	 	4.75 to 1.00
	April 1, 2006 to June 30, 2006	 	4.50 to 1.00
	July 1, 2006 to March 31, 2007	 	4.25 to 1.00
	April 1, 2007 to June 30, 2007	 	4.00 to 1.00
	July 1, 2007 to March 31, 2008	 	3.75 to 1.00
	April 1, 2008 to June 30, 2008	 	3.50 to 1.00
	July 1, 2008 and thereafter	 	3.25 to 1.00

        10.10    Consolidated EBITDA to Consolidated Interest Expense Ratio.    The Parent Companies, Holdings and the US
Borrower will not permit the Consolidated EBITDA to Consolidated Interest Expense Ratio for any Test Period ending during any period set forth below to be less than the ratio set forth below opposite
such period: 

	Period
	 	Ratio

	April 1, 2003 to March 31, 2004	 	1.65 to 1.00
	April 1, 2004 to September 30, 2004	 	1.70 to 1.00
	October 1, 2004 to March 31, 2005	 	1.75 to 1.00
	April 1, 2005 to September 30, 2005	 	1.80 to 1.00
	October 1, 2005 to December 31, 2005	 	1.85 to 1.00
	January 1, 2006 to June 30, 2006	 	1.90 to 1.00
	July 1, 2006 to December 31, 2006	 	1.95 to 1.00
	January 1, 2007 to June 30, 2007	 	2.00 to 1.00
	July 1, 2007 to December 31, 2007	 	2.10 to 1.00
	January 1, 2008 to December 31, 2008	 	2.25 to 1.00
	January 1, 2009 to December 31, 2009	 	2.50 to 1.00
	January 1, 2010 and thereafter	 	2.75 to 1.00

        10.11    Capital Expenditures.    The Parent Companies, Holdings, the US Borrower and the UK Borrower will not, and
will not permit any of the Restricted Subsidiaries to, make any Capital Expenditures (other than Permitted Acquisitions that constitute Capital Expenditures), that would cause the aggregate amount of
such Capital Expenditures made by the US Borrower and the Restricted Subsidiaries in any fiscal year of the US Borrower set forth below to exceed the sum of (a) the greater of (i) the
amount set forth in the table below opposite such fiscal year and (ii) an amount equal to 6.00% multiplied by Consolidated Net Sales for such fiscal year (such greater amount, the
"Permitted Capital Expenditure Amount") and (b) the Available Amount as of the last day of such fiscal year
(provided that no portion of the Available Amount may be used for Capital Expenditures until the entire amount of the sum of (i) the Permitted
Capital Expenditure Amount 

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for
such year and (ii) the carry-forward amount (as defined below in this Section 10.11) for such year shall have been used to make Capital Expenditures). 

	Period
	 	Amount

	January 1, 2003 to December 31, 2003	 	$	50,000,000
	January 1, 2004 to December 31, 2004	 	$	55,000,000
	January 1, 2005 to December 31, 2005	 	$	60,000,000
	January 1, 2006 to December 31, 2006	 	$	65,000,000
	January 1, 2007 to December 31, 2007	 	$	65,000,000
	January 1, 2008 to December 31, 2008	 	$	65,000,000
	January 1, 2009 to December 31, 2009	 	$	65,000,000
	January 1, 2010 and thereafter	 	$	65,000,000

        To
the extent that Capital Expenditures (other than Permitted Acquisitions that constitute Capital Expenditures) made by the US Borrower and the Restricted Subsidiaries during any fiscal
year are less than the Permitted Capital Expenditure Amount for such fiscal year, 100% of such unused amount (each such amount, a "carry-forward
amount") may be carried forward to the immediately succeeding fiscal year and utilized to make such Capital Expenditures in such succeeding fiscal year in the event the amount
set forth above for such succeeding fiscal year has been used (it being understood and agreed that (a) no carry-forward amount may be carried forward beyond the first two fiscal years
immediately succeeding the fiscal year in which it arose, (b) no portion of the carry-forward amount available for any fiscal year may be used until the entire amount of the Permitted Capital
Expenditure Amount for such fiscal year (without giving effect to such carry-forward amount) shall have been used to make Capital Expenditures and (c) if the carry-forward amount available for
any fiscal year is the sum of amounts carried forward from each of the two immediately preceding fiscal years, no portion of such carry-forward amount from the earlier of the two immediately preceding
fiscal years may be used until the entire portion of such carry-forward amount from the more recent immediately preceding fiscal year shall have been used for such Capital Expenditures made in such
fiscal year). 

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        SECTION 11.    Events of Default    

        Upon
the occurrence of any of the following specified events (each an "Event of Default"): 

        11.1    Payments.    The US Borrower or the UK Borrower shall (a) default in the payment when due of any
principal of the Loans or (b) default, and such default shall continue for five or more days, in the payment when due of any interest on the Loans or any Fees or any Unpaid Drawings or of any
other amounts owing hereunder or under any other Credit Document; or 

        11.2    Representations, etc.    Any representation, warranty or statement made or deemed made by any Credit Party
herein or in any Security Document or any certificate delivered or required to be delivered pursuant hereto or thereto shall prove to be untrue in any material respect on the date as of which made or
deemed made; or 

        11.3    Covenants.    Any Credit Party shall (a) default in the due performance or observance by it of any
term, covenant or agreement contained in Section 9.1(e), Section 9.16, Section 9.18 or Section 10 or (b) default in the due performance or observance by it of any
term, covenant or agreement (other than those referred to in Section 11.1 or 11.2 or clause (a) of this Section 11.3) contained in this Agreement, or any Security Document and
such default shall continue unremedied for a period of at least 30 days after receipt of written notice by the US Borrower from the Administrative Agent or the Required Lenders; or 

        11.4    Default Under Other Agreements.    (a) Any of the Parent Companies, Holdings, the US Borrower, the UK
Borrower or any of the Restricted Subsidiaries shall (i) default in any payment with respect to any Indebtedness (other than the Obligations) in excess of $20,000,000 in the aggregate, for the
Parent Companies, Holdings, the US Borrower, the UK Borrower and such Subsidiaries, beyond the period of grace, if any, provided in the instrument or agreement under which such Indebtedness was
created or (ii) default in the observance or performance of any agreement or condition relating to any such Indebtedness or contained in any instrument or agreement evidencing, securing or
relating thereto, or (except in the case of Indebtedness consisting of any Hedge Agreement) any other event shall occur or condition exist, the effect of which default or other event or condition is
to cause, or to permit the holder or holders of such Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause, any such Indebtedness to become due prior to its stated
maturity; or (b) without limiting the provisions of clause (a) above, any such Indebtedness (other than Indebtedness consisting of any Hedge Agreement) shall be declared to be due and
payable, or required to be prepaid other than by a
regularly scheduled required prepayment or as a mandatory prepayment, prior to the stated maturity thereof; or 

        11.5    Bankruptcy, etc.    Any of the Parent Companies, Holdings, the US Borrower, the UK Borrower or any Specified
Subsidiary shall commence a voluntary case concerning itself under (a) Title 11 of the United States Code entitled "Bankruptcy," or (b) in the case of the UK Borrower and any Foreign
Subsidiary that is a Specified Subsidiary, the bankruptcy and/or insolvency legislation of its jurisdiction of incorporation, in each case as now or hereafter in effect, or any successor thereto
(collectively, the "Bankruptcy Code"); or an involuntary case is commenced against any of the Parent Companies, Holdings, the US Borrower, the UK
Borrower or any Specified Subsidiary and the petition is not controverted within 10 days after commencement of the case; or an involuntary case is commenced against any of the Parent Companies,
Holdings, the US Borrower, the UK Borrower or any Specified Subsidiary and the petition is not dismissed within 60 days after commencement of the case; or a custodian (as defined in the
Bankruptcy Code) or similar person is appointed for, or takes charge of, all or substantially all of the property of any of the Parent Companies, Holdings, the US Borrower, the UK Borrower or any
Specified Subsidiary; or any of the Parent Companies, Holdings, the US Borrower, the UK Borrower or any Specified Subsidiary commences any other proceeding under 

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any
reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to any of
the Parent Companies, Holdings, the US Borrower, the UK Borrower or any Specified Subsidiary; or there is commenced against any of the Parent Companies, Holdings, the US Borrower, the UK Borrower or
any Specified Subsidiary any such proceeding that remains undismissed for a period of 60 days; or any of the Parent Companies, Holdings, the US Borrower, the UK Borrower or any Specified
Subsidiary is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or any of the Parent Companies, Holdings, the US Borrower, the
UK Borrower or any Specified Subsidiary suffers any appointment of any custodian or the like for it or any substantial part of its property to continue undischarged or unstayed for a period of
60 days; or any of the Parent Companies, Holdings, the US Borrower, the UK Borrower or any Specified Subsidiary makes a general assignment for the benefit of creditors; or any corporate action
is taken by any of the Parent Companies, Holdings, the US Borrower, the UK Borrower or any Specified Subsidiary for the purpose of effecting any of the foregoing; or 

        11.6    ERISA.    (a) Any Plan shall fail to satisfy the minimum funding standard required for any plan year or
part thereof or a waiver of such standard or extension of any amortization period is sought or granted under Section 412 of the Code; any Plan is or shall have been terminated or is the subject
of termination proceedings under ERISA (including the giving of written notice thereof); an event shall have occurred or a condition shall exist in either case entitling the PBGC to terminate any Plan
or to appoint a trustee to administer any Plan (including the giving of written notice thereof); any Plan shall have an accumulated funding deficiency (whether or not waived); any of the Parent
Companies, Holdings, the US Borrower or any Subsidiary or any ERISA Affiliate has incurred or is likely to incur a liability to or on account of a Plan under Section 409, 502(i), 502(1), 515,
4062, 4063, 4064, 4069, 4201 or 4204 of ERISA or Section 4971 or 4975 of the Code (including the giving of written notice thereof); (b) there could result from any event or events set
forth in clause (a) of this Section 11.6 the imposition of a lien, the granting of a security interest, or a liability, or the reasonable likelihood of incurring a
lien, security interest or liability; and (c) such lien, security interest or liability will or would be reasonably likely to have a Material Adverse Effect; or 

        11.7    Guarantee.    The Guarantee or any material provision thereof shall cease to be in full force or effect or any
Guarantor thereunder or any Credit Party shall deny or disaffirm in writing any Guarantor's obligations under the Guarantee; or 

        11.8    Pledge Agreement.    The Pledge Agreement or any material provision thereof shall cease to be in full force or
effect (other than pursuant to the terms hereof or thereof or as a result of acts or omissions of the Administrative Agent or any Lender) or any pledgor thereunder or any Credit Party shall deny or
disaffirm in writing any pledgor's obligations under the Pledge Agreement; or 

        11.9    Security Agreement.    The Security Agreement or any material provision thereof shall cease to be in full
force or effect (other than pursuant to the terms hereof or thereof or as a result of acts or omissions of the Administrative Agent or any Lender) or any grantor thereunder or any Credit Party shall
deny or disaffirm in writing any grantor's obligations under the Security Agreement; or 

        11.10    Mortgages.    Any Mortgage or any material provision of any Mortgage shall cease to be in full force or
effect (other than pursuant to the terms hereof or thereof or as a result of acts or omissions of the Administrative Agent or any Lender) or any Mortgagor thereunder or any Credit Party shall deny or
disaffirm in writing any Mortgagor's obligations under any Mortgage; or 

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        11.11    Foreign Guarantees.    Any Foreign Guarantee or any material provision of any Foreign Guarantee shall cease
to be in full force or effect or any grantor thereunder or any Credit Party shall deny or disaffirm in writing any grantors obligations under any Foreign Guarantee; or 

        11.12    Foreign Security Documents.    Any Foreign Security Document or any material provision of any Foreign
Security Document shall cease to be in full force or effect (other than pursuant to the terms hereof or thereof or as a result of acts or omissions of the Administrative Agent or any Lender) or any
grantor thereunder or any Credit Party shall deny or disaffirm in writing any grantors obligations under any Foreign Security Document; or 

        11.13    Subordination.    The Obligations of the US Borrower and the UK Borrower, or the obligations of Holdings or
any Subsidiaries pursuant to the Guarantee or any of the Foreign Subsidiary Guarantees, shall cease to constitute senior indebtedness under the subordination provisions of any document or
instrument evidencing the Subordinated Notes or any other permitted subordinated Indebtedness or such subordination provisions shall be invalidated or otherwise cease to be legal, valid and binding
obligations of the parties thereto, enforceable in accordance with their terms; or 

        11.14    Judgments.    One or more judgments or decrees shall be entered against the US Borrower, the UK Borrower or
any of the Restricted Subsidiaries involving a liability of $20,000,000 or more in the aggregate for all such judgments and decrees for the US Borrower and the Restricted Subsidiaries (to the extent
not paid or fully covered by insurance provided by a carrier not disputing coverage) and any such judgments or decrees shall not have been satisfied, vacated, discharged or stayed or bonded pending
appeal within 60 days from the entry thereof; or 

        11.15    Change of Control.    A Change of Control shall occur; 

then,
and in any such event, and at any time thereafter, if any Event of Default shall then be continuing, the Administrative Agent shall, upon the written request of the Required Lenders, by written
notice to the US Borrower, take any or all of the following actions, without prejudice to the rights of the Administrative Agent or any Lender to enforce its claims against the US Borrower and the UK
Borrower, except as otherwise specifically provided for in this Agreement (provided that, if an Event of Default specified in Section 11.5 shall
occur with respect to the US Borrower, the UK Borrower or any Specified Subsidiary, the result that would occur upon the giving of written notice by the Administrative Agent as specified in clauses
(i), (ii) and (iv) below shall occur automatically without the giving of any such notice): (i) declare the Total Revolving Credit Commitment terminated, whereupon the Commitments
and Swingline Commitment, if any, of each Lender or the Swingline Lender, as the case may be, shall forthwith terminate immediately and any Fees theretofore accrued shall forthwith become due and
payable without any other notice of any kind; (ii) declare the principal of and any accrued interest in respect of all Loans and all Obligations owing hereunder and thereunder to be, whereupon
the same shall become, forthwith due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the US Borrower and the UK Borrower;
(iii) terminate any Letter of Credit that may be terminated in accordance with its terms; and/or (iv) direct the US Borrower and the UK Borrower to pay (and the US Borrower and the UK
Borrower agree that upon receipt of such notice, or upon the occurrence of an Event of Default specified in Section 11.5 with respect to the US Borrower, the UK Borrower or any Specified
Subsidiary, it will pay) to the Administrative Agent at the Administrative Agent's Office such additional amounts of cash, to be held as security for the US Borrower's and the UK Borrower's respective
reimbursement obligations for Drawings that may subsequently occur thereunder, equal to the aggregate Stated Amount of all Letters of Credit issued and then outstanding. 

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        SECTION
12.    The Administrative Agent    

        12.1    Appointment.    Each Lender hereby irrevocably designates and appoints the Administrative Agent as the agent
of such Lender under this Agreement and the other Credit Documents, and each such Lender irrevocably authorizes the Administrative Agent, in such capacity, to take such action on its behalf under the
provisions of this Agreement and the other Credit Documents and to exercise such powers and perform such duties as are expressly delegated to the Administrative Agent by the terms of this Agreement
and the other Credit Documents, together with such other powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary elsewhere in this Agreement, the Administrative
Agent shall not have any duties or responsibilities, except those expressly set forth herein, or any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities,
duties, obligations or liabilities shall be read into this Agreement or any other Credit Document or otherwise exist against the Administrative Agent. Neither the Syndication Agent nor the
Documentation Agents, in their respective capacities as such, shall have any obligations, duties or responsibilities under this Agreement. 

        12.2    Delegation of Duties.    The Administrative Agent may execute any of its duties under this Agreement and the
other Credit Documents by or through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. The Administrative
Agent shall not be responsible for the negligence or misconduct of any agents or attorneys-in-fact selected by it with reasonable care. 

        12.3    Exculpatory Provisions.    Neither the Administrative Agent nor any of its officers, directors, employees,
agents, attorneys-in-fact or Affiliates shall be (a) liable for any action lawfully taken or omitted to be taken by it or such Person under or in connection with this
Agreement or any other Credit Document (except for its or such Person's own gross negligence or willful misconduct) or (b) responsible in any manner to any of the Lenders for any recitals,
statements, representations or warranties made by the US Borrower, the UK Borrower, any Guarantor, any Foreign Subsidiary Guarantor, any other Credit Party or any officer thereof contained in this
Agreement or any other Credit Document or in any certificate, report, statement or other document referred to or provided for in, or received by the Administrative Agent under or in connection with,
this Agreement or any other Credit Document or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Credit Document or for any failure of
the US Borrower, the UK Borrower, any Guarantor, any Foreign Subsidiary Guarantor or any other Credit Party to perform its obligations hereunder or thereunder. The Administrative Agent shall not be
under any obligation to any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Credit Document,
or to inspect the properties, books or records of the US Borrower or the UK Borrower. 

        12.4    Reliance by Administrative Agent.    The Administrative Agent shall be entitled to rely, and shall be fully
protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter, telecopy, telex or teletype message, statement, order or other document or conversation believed by
it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons and upon advice and statements of legal counsel (including counsel to the US Borrower and/or the UK
Borrower), independent accountants and other experts selected by the Administrative Agent. The Administrative Agent may deem and treat the Lender specified in the Register with respect to any amount
owing hereunder as the owner thereof for all purposes unless a written notice of assignment, negotiation or transfer thereof shall have been filed with the Administrative Agent. The Administrative
Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Credit Document unless it shall first receive such advice or concurrence of the Required
Lenders as it deems appropriate or it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense that may be incurred by it by reason of taking or
continuing to take any such action. The Administrative Agent shall in all cases be fully protected in acting, or in refraining from 

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acting,
under this Agreement and the other Credit Documents in accordance with a request of the Required Lenders, and such request and any action taken or failure to act pursuant thereto shall be
binding upon all the Lenders and all future holders of the Loans. 

        12.5    Notice of Default.    The Administrative Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default hereunder unless the Administrative Agent has received notice from a Lender or the US Borrower referring to this Agreement, describing such Default or
Event of Default and stating that such notice is a "notice of default". In the event that the Administrative Agent receives such a notice, the Administrative Agent shall give notice thereof to the
Lenders. The Administrative Agent shall take such action with respect to such Default or Event of Default as shall be reasonably directed by the Required Lenders,  provided that unless and until the
Administrative Agent shall have received such directions, the Administrative Agent may (but shall not be obligated
to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable in the best interests of the Lenders (except to the extent that
this Agreement requires that such action be taken only with the approval of the Required Lenders or each of the Lenders, as applicable). 

        12.6    Non-Reliance on Administrative Agent and Other Lenders.    Each Lender expressly acknowledges that
neither the Administrative Agent nor any of its officers, directors, employees, agents, attorneys-in-fact or Affiliates has made any representations or warranties to it and
that no act by the Administrative Agent hereinafter taken, including any review of the affairs of the US Borrower, the UK Borrower, any Guarantor, any Foreign Subsidiary Guarantor or any other Credit
Party, shall be deemed to constitute any representation or warranty by the Administrative Agent to any Lender. Each Lender represents to the Administrative Agent 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 appraisal of and investigation into the business,
operations, property, financial and other condition and creditworthiness of the US Borrower, the UK Borrower, any Guarantor, any Foreign Subsidiary Guarantor and any other Credit Party and made its
own decision to make its Loans hereunder and enter into this Agreement. Each Lender also represents 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 deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Credit Documents, and to make such investigation as it deems
necessary to inform itself as to the business, operations, property, financial and other condition and creditworthiness of the US Borrower, the UK Borrower, any Guarantor, any Foreign Subsidiary
Guarantor and any other Credit Party. Except for notices, reports and other documents expressly required to be furnished to the Lenders by the Administrative Agent hereunder, the Administrative Agent
shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, assets, operations, properties, financial condition, prospects or
creditworthiness of the US Borrower, the UK Borrower, any Guarantor, any Foreign Subsidiary Guarantor or any other Credit Party that may come into the possession of the Administrative Agent or any of
its officers, directors, employees, agents, attorneys-in-fact or Affiliates. 

        12.7    Indemnification.    The Lenders agree to indemnify the Administrative Agent in its capacity as such (to the
extent not reimbursed by the US Borrower or the UK Borrower and without limiting the obligation of the US Borrower and the UK Borrower to do so), ratably according to their respective portions of the
Total Credit Exposure in effect on the date on which indemnification is sought (or, if indemnification is sought after the date upon which the Commitments shall have terminated and the Loans shall
have been paid in full, ratably in accordance with their respective portions of the Total Credit Exposure in effect immediately prior to such date), from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any time (including at any time following the 

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payment
of the Loans) be imposed on, incurred by or asserted against the Administrative Agent in any way relating to or arising out of, the Commitments, this Agreement, any of the other Credit
Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by the Administrative Agent under or in
connection with any of the foregoing, provided that no Lender shall be liable for the payment of any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the Administrative Agent's gross negligence or willful misconduct. The agreements in this
Section 12.7 shall survive the payment of the Loans and all other amounts payable hereunder. 

        12.8    Administrative Agent in its Individual Capacity.    The Administrative Agent and its Affiliates may make loans
to, accept deposits from and generally engage in any kind of business with the US Borrower, the UK Borrower, any Guarantor, any Foreign Subsidiary Guarantor and any other Credit Party as though the
Administrative Agent were not the Administrative Agent hereunder and under the other Credit Documents. With respect to the Loans made by it, the Administrative Agent shall have the same rights and
powers under this Agreement and the other Credit Documents as any Lender and may exercise the same as though it were not the Administrative Agent, and the terms "Lender" and "Lenders" shall include
the Administrative Agent in its individual capacity. 

        12.9    Successor Agent.    The Administrative Agent may resign as Administrative Agent upon 20 days' prior
written notice to the Lenders and the US Borrower. If the Administrative Agent shall resign as
Administrative Agent under this Agreement and the other Credit Documents, then the Required Lenders shall appoint from among the Lenders a successor agent for the Lenders, which successor agent shall
be approved by the US Borrower (which approval shall not be unreasonably withheld), whereupon such successor agent shall succeed to the rights, powers and duties of the Administrative Agent, and the
term "Administrative Agent" shall mean such successor agent effective upon such appointment and approval, and the former Administrative Agent's rights, powers and duties as Administrative Agent shall
be terminated, without any other or further act or deed on the part of such former Administrative Agent or any of the parties to this Agreement or any holders of the Loans. After any retiring
Administrative Agent's resignation as Administrative Agent, the provisions of this Section 12 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement and the other Credit Documents. 

        SECTION
13.    Collateral Allocation Mechanism    

        13.1    Implementation of CAM.    (a) On the CAM Exchange Date, (i) the Commitments shall automatically
and without further act be terminated as provided in Section 11, (ii) the Lenders shall automatically and without further act (and without regard to the provisions of
Section 14.6) be deemed to have exchanged interests in the Credit Facilities such that in lieu of the interest of each Lender in each Credit Facility in which it shall participate as of such
date (including such Lender's interest in the Specified Obligations of each Credit Party in respect of each such Credit Facility), such Lender shall hold an interest in every one of the Credit
Facilities (including the Specified Obligations of each Credit Party in respect of each such Credit Facility and each L/C Reserve Account established pursuant to Section 13.2 below), whether or
not such Lender shall previously have participated therein, equal to such Lender's CAM Percentage thereof and (iii) simultaneously with the deemed exchange of interests pursuant to
clause (ii) above, in the case of any CAM Dollar Lender that has prior to the date thereof notified the Administrative Agent and the US Borrower in writing that it has elected to have this
clause (iii) apply to it, the interests in the Loans to be received by such CAM Dollar Lender in such deemed exchange shall, automatically and with no further action required, be converted into
the Dollar Equivalent, determined using the Exchange Rate calculated as of such date, of such amount and on and after such date all amounts accruing and owed to such CAM Dollar Lender in respect of
such Obligations shall accrue and be payable in Dollars at the rate otherwise applicable hereunder, provided that such CAM Exchange will not affect the
aggregate amount of the Obligations of the US Borrower 

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and
the UK Borrower to the Lenders under the Credit Documents. Each Lender and each Credit Party hereby consents and agrees to the CAM Exchange, and each Lender 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 Credit Facility. Each Credit Party agrees from time to time to execute and deliver to the
Administrative Agent all promissory notes and other instruments and documents as the Administrative Agent shall reasonably request to evidence and confirm the respective interests 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 Administrative Agent against
delivery of new promissory notes evidencing its interests in the Credit Facilities; provided, however,
that the failure of any Credit Party 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. 

        (b)   As
a result of the CAM Exchange, upon and after the CAM Exchange Date, each payment received by the Administrative Agent pursuant to any Credit Document in respect of
the Specified Obligations, and each distribution made by the Administrative Agent pursuant to any Credit Document in respect of the Specified Obligations, shall be distributed to the Lenders  pro rata in
accordance with their respective CAM Percentages. Any direct payment received by a Lender upon or after the CAM Exchange Date, including by
way of setoff, in respect of a Specified Obligation shall be paid over to the Administrative Agent for distribution to the Lenders in accordance herewith. 

        13.2    Letters of Credit.    (a) In the event that on the CAM Exchange Date any Letter of Credit shall be
outstanding and undrawn in whole or in part, or any amount drawn under a Letter of Credit shall constitute an Unpaid Drawing, each Lender in respect of Unpaid Drawings on Letters of Credit shall,
before giving effect to the CAM Exchange, promptly pay over to the Administrative Agent, in immediately available funds and in the currency that such Letters of Credit are denominated, an amount equal
to such Lender's Revolving Credit Commitment Percentage (as notified to such Lender by the Administrative Agent), of such Letter of Credit's undrawn face amount or (to the extent it has not already
done so) such Letter of Credit's Unpaid Drawing, as the case may be, together with interest thereon from the CAM Exchange Date to the date on which such amount shall be paid to the Administrative
Agent at the rate that would be applicable at the time to a Revolving Credit Loan that is an ABR Loan in a principal amount equal to such amount, as the case may be. The Administrative Agent shall
establish a separate account or accounts for each Lender (each, an "L/C Reserve Account") for the amounts received with respect to each such Letter of
Credit pursuant to the preceding sentence. The Administrative Agent shall deposit in each Lender's L/C Reserve Account such Lender's CAM Percentage of the amounts received from the Lenders as provided
above. The Administrative Agent shall have sole dominion and control over each L/C Reserve Account, and the amounts deposited in each L/C Reserve Account shall be held in such L/C Reserve Account
until withdrawn as provided in paragraph (b), (c), (d) or (e) below. The Administrative Agent shall maintain records enabling it to determine the amounts paid over to it and
deposited in the L/C Reserve Accounts in respect of each Letter of Credit and the amounts on deposit in respect of each Letter of Credit attributable to each Lender's CAM Percentage. The amounts held
in each Lender's L/C Reserve Account shall be held as a reserve against the Letter of Credit Exposure, shall be the property of such Lender, shall not constitute Loans to or give rise to any claim of
or against any Credit Party and shall not give rise to any obligation on the part of the US Borrower or the UK Borrower to pay interest to such Lender, it being agreed that the reimbursement
obligations in respect of Letters of Credit shall arise only at such times as drawings are made thereunder, as provided in Section 3. 

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        (b)   In the event that after the CAM Exchange Date any drawing shall be made in respect of a Letter of Credit, the Administrative Agent shall, at the request of the Letter of
Credit Issuer withdraw from the L/C Reserve Account of each Lender any amounts, up to the amount of such Lender's CAM Percentage of such drawing, deposited in respect of such Letter of Credit and
remaining on deposit and deliver such amounts to the Letter of Credit Issuer in satisfaction of the reimbursement obligations of the Lenders under Section 3 (but not of the US Borrower and the
UK Borrower under Section 3, respectively). In the event any Lender shall default on its obligation to pay over any amount to the Administrative Agent in respect of any Letter of Credit as
provided in this Section 13.2, the Letter of Credit Issuer shall, in the event of a drawing thereunder, have a claim against such Lender to the same extent as if such Lender had defaulted on
its obligations under Section 2.05(e), but shall have no claim against any other Lender in respect of such defaulted amount, notwithstanding the exchange of interests in the reimbursement
obligations pursuant to Section 9.01. Each other Lender shall have a claim against such defaulting Lender for any damages sustained by it as a result of such default, including, in the event
such Letter of Credit shall expire undrawn, its CAM Percentage of the defaulted amount. 

        (c)   In
the event that after the CAM Exchange Date any Letter of Credit shall expire undrawn, the Administrative Agent shall withdraw from the L/C Reserve Account of each
Lender the amount remaining on deposit therein in respect of such Letter of Credit and distribute such amount to such Lender. 

        (d)   With
the prior written approval of the Administrative Agent and the Letter of Credit Issuer, any Lender may withdraw the amount held in its L/C Reserve Account in
respect of the undrawn amount of any Letter of Credit. Any Lender making such a withdrawal shall be unconditionally obligated, in the event there shall subsequently be a drawing under such Letter of
Credit, to pay over to the Administrative Agent, for the account of the Letter of Credit Issuer on demand, its CAM Percentage of such drawing. 

        (e)   Pending
the withdrawal by any Lender of any amounts from its L/C Reserve Account as contemplated by the above paragraphs, the Administrative Agent will, at the direction
of such Lender and subject to such rules as the Administrative Agent may prescribe for the avoidance of inconvenience, invest such amounts in Permitted Investments. Each Lender that has not withdrawn
its CAM Percentage of amounts in its L/C Reserve Account as provided in paragraph (d) above shall have the right, at intervals reasonably specified by the Administrative Agent, to withdraw the
earnings on investments so made by the Administrative Agent with amounts in its L/C Reserve Account and to retain such earnings for its own account. 

        13.3    Net Payments Upon Implementation of CAM Exchange.    Notwithstanding any other provision of this Agreement,
if, as a direct result of the implementation of the CAM Exchange, the US Borrower or the UK Borrower is required to withhold Non-Excluded Taxes from amounts payable to the Administrative
Agent, any Lender or any Participant hereunder, the amounts so payable to the Administrative Agent, such Lender or such Participant shall be increased to the extent necessary to yield to the
Administrative Agent, such Lender or such Participant (after payment of all Non-Excluded Taxes) interest or any such other amounts payable hereunder at the rates or in the amounts
specified in this Agreement; provided, however, that the US Borrower and the UK Borrower shall not be
required to increase any such amounts payable to such Lender or Participant under this Section 13.3 (but, rather, shall be required to increase any such amounts payable to such Lender or
Participant to the extent required by Section 5.4) if such Lender or Participant was prior to or on the CAM Exchange Date already a Lender or Participant with respect to such US Borrower or UK
Borrower. If a Non-U.S. Lender (or Non-U. S. Participant), in its good faith judgment, is eligible for an exemption from, or reduced rate of, U.S. Federal withholding tax on
payments by the US Borrower under this Agreement, the US Borrower shall not be required to increase any such amounts payable to such Non-U.S. Lender (or Non-U.S. Participant)
if such Non-U.S. Lender (or Non-U.S. Participant) fails to 

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comply
with the requirements of paragraph (b) of Section 5.4. Upon a CAM Exchange, a Lender (or Participant) will use commercially reasonable efforts, and complete any procedural
formalities necessary, to become an Eligible Lender with respect to the UK Borrower and, if such Lender (or Participant) fails to do so, the UK Borrower shall not be required to increase any such
amounts payable to such Lender (or Participant). If the US Borrower or the UK Borrower, as the case may be, fails to pay any such Non-Excluded Taxes when due to the appropriate taxing
authority or fails to remit to the Administrative Agent the required receipts or other required documentary evidence, such US Borrower or UK Borrower shall indemnify the Administrative Agent, the
Lenders and the Participants for any incremental taxes, interest, costs or penalties that may become payable by the Administrative Agent, such Lenders or such Participants as a result of any such
failure. 

        SECTION
14.    Miscellaneous    

        14.1    Amendments and Waivers.    Neither this Agreement nor any other Credit Document, nor any terms hereof or
thereof may be amended, supplemented or modified except in accordance with the provisions of this Section 14.1. The Required Lenders may, or, with the written consent of the Required Lenders,
the Administrative Agent may, from time to time, (a) enter into with the relevant Credit Party or Credit Parties written amendments, supplements or modifications hereto and to the other Credit
Documents for the purpose of adding any provisions to this Agreement or the other Credit Documents or changing in any manner the rights of the Lenders or of the Credit Parties hereunder or thereunder
or (b) waive, on such terms and conditions as the Required Lenders or the Administrative Agent, as the case may be, may specify in such instrument, any of the requirements of this Agreement or
the other Credit Documents or any Default or Event of Default and its consequences; provided, however,
that no such waiver and no such amendment, supplement or modification shall directly (i) forgive any portion of any Loan or extend the final scheduled maturity date of any Loan or reduce the
stated rate, or forgive any portion, or extend the date for the payment, of any interest or fee payable hereunder (other than as a result of waiving the applicability of any post-default
increase in interest rates) or extend the final expiration date of any Lender's Commitment or extend the final expiration date of any Letter of Credit beyond the L/C Maturity Date or increase the
aggregate amount of the Commitments of any Lender, in each case without the written consent of each Lender directly and adversely affected thereby, or (ii) amend, modify or waive any provision
of this Section 14.1 or reduce the percentages specified in the definitions of the terms "Required Lenders", "Required Revolving Credit Lenders", "Required Tranche A Lenders", "Required Tranche
B Lenders" and "Required Tranche B-1 Lenders", or consent to the assignment or transfer by the US Borrower or the UK Borrower of its rights and obligations under any Credit Document to
which it is a party (except as permitted pursuant to Section 10.3), in each case without the written consent of each Lender directly and adversely affected thereby, or (iii) amend,
modify or waive any provision of Section 12 without the written consent of the then-current Administrative Agent, or (iv) amend, modify or waive any provision of
Section 3 without the written consent of the Letter of Credit Issuer, or (v) amend, modify or waive any provisions hereof relating to Swingline Loans without the written consent of the
Swingline Lender, or (vi) change any Revolving Credit Commitment to a Term Loan Commitment, or change any Term Loan Commitment to a Revolving Credit Commitment, in each case without the prior
written consent of each Lender directly and adversely affected thereby, or (vii) release all or substantially all of the Guarantors under the Guarantee (except as expressly permitted by the
Guarantee Agreement), release all or substantially all of the Foreign Subsidiary Guarantors under any Foreign Subsidiary Guarantee (except as permitted by any Foreign Subsidiary Guarantee) or release
all or substantially all of the Collateral under the Pledge Agreement, the Security Agreement, the Foreign Security Documents and the Mortgages, in each case without the prior written consent of each
Lender, or (viii) decrease any Tranche A Repayment Amount, extend any scheduled Tranche A Repayment Date or decrease the amount or allocation of any mandatory prepayment to be received by any
Lender holding any Tranche A Loans (other than a decrease in such mandatory prepayment amount that is accompanied by a proportionate decrease in mandatory 

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prepayments
to be allocated to other Term Loans pursuant to Section 5.2(c)), in each case without the written consent of the Required Tranche A Lenders, or (ix) decrease any Tranche B
Repayment Amount, extend any scheduled Tranche B Repayment Date or decrease the amount or allocation of any mandatory prepayment to be received by any Lender holding any Tranche B Loans (other than a
decrease in such mandatory prepayment amount that is accompanied by a proportionate decrease in mandatory prepayments to be allocated to other Term Loans pursuant to Section 5.2(c)), in each
case without the written consent of the Required Tranche B Lenders, or (x) decrease any Tranche B-1 Repayment Amount, extend any scheduled Tranche B-1 Repayment Date or
decrease the amount or allocation of any mandatory prepayment to be received by any Lender holding any Tranche B-1 Loans (other than a decrease in such mandatory prepayment
amount that is accompanied by a proportionate decrease in mandatory prepayments to be allocated to other Term Loans pursuant to Section 5.2(c)), in each case without the written consent of the
Required Tranche B-1 Lenders, and; provided further, that at any time that no Default or Event of Default has occurred and is continuing,
the Revolving Credit Commitment of any Lender may be increased to finance a Permitted Acquisition, with the consent of such Lender, the US Borrower and the Administrative Agent (which consent, in the
case of the Administrative Agent, shall not be unreasonably withheld) and without the consent of the Required Lenders, so long as (i) the Increased Commitment Amount at such time, when added to
the amount of Indebtedness incurred pursuant to Section 10.1(k) and outstanding at such time, does not exceed the limits set forth therein, (ii) the US Borrower or its applicable
Restricted Subsidiary shall pledge the capital stock of any person acquired pursuant thereto to the Administrative Agent for the benefit of the Lenders to the extent required under Section 9.12
and (iii) to the extent determined by the Administrative Agent to be necessary to ensure pro rata borrowings commencing with the initial
borrowing after giving effect to such increase, the US Borrower shall prepay any Eurodollar Loans outstanding immediately prior to such initial borrowing; as used herein, the
"Increased Commitment Amount" means, at any time, aggregate amount of all increases pursuant to this proviso made at or prior to such time less the
aggregate amount of all voluntary reductions of the Revolving Credit Commitments made prior to such time. Any such waiver and any such amendment, supplement or modification shall apply equally to each
of the affected Lenders and shall be binding upon the US Borrower, the UK Borrower, such Lenders, the Administrative Agent and all future holders of the affected Loans. In the case of any waiver, the
US Borrower, the Lenders and the Administrative Agent shall be restored to their former positions and rights hereunder and under the other Credit Documents, and any Default or Event of Default waived
shall be deemed to be cured and not continuing, it being understood that no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereon. 

        Notwithstanding
the foregoing, without prior notice to or consent of any Lender, until such time as all obligations of the US Borrower and the other Credit Parties pursuant to
Section 9.18 have been satisfied (or waived by the Required Lenders), the Administrative Agent may enter into with the relevant Credit Party or Credit Parties written amendments, supplements or
modifications hereto and to the other Credit Documents to make changes the net effect of which do not adversely affect, in the reasonable determination of the Administrative Agent, the rights of any
Lender (including to add covenants of the Credit Parties for the benefit of the Lenders). 

        14.2    Notices.    All notices, requests and demands to or upon the respective parties hereto to be effective shall
be in writing (including by facsimile transmission), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered, or three days after being
deposited in the mail, postage prepaid, or, in the case of telecopy notice, when received, addressed as follows in the case of the US Borrower, the UK Borrower and the Administrative Agent, 

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and
as set forth on Schedule 1.1(c) in the case of the other parties hereto, or to such other address as may be hereafter notified by the respective parties hereto: 

	 	The US Borrower and the UK Borrower:	 	Rockwood Specialties Group, Inc.

100 Overlook Center

Princeton, NJ 08542

Attention: Tom Riordan

Fax: +1-609-514-8722
	

 	
 	

with a copy to:
	 	

 	
 	

Kohlberg Kravis Roberts & Co., L.P.

9 West 57th Street

Suite 4200

New York, NY 10019

Attention: Brian Carroll

Fax: +1-212-750-0003
	 	

The Administrative Agent:	
 	

JPMorgan Chase Bank

c/o The Loan and Agency Services Group

1111 Fannin Street

10th Floor

Houston, TX 77002

Attention: Jaime Kurtz

Fax: +1-713-750-2377
	 	

 	
 	

JPMorgan Chase Bank

c/o J.P. Morgan Europe Limited

Agency Loans

125 London Wall

London EC2Y5AJ

Attention: Karen Crooks

Fax: +44 207 777 2360
	

 	
 	

with a copy to:
	

 	
 	

JPMorgan Chase Bank

270 Park Avenue

4th Floor

New York, NY 10017

Attention: Peter Dedousis

Fax: +1-212-270-5100

provided that any notice, request or demand to or upon the Administrative Agent or the Lenders pursuant to Sections 2.3, 2.6, 2.9, 4.2 and 5.1 shall not
be effective until received. 

        14.3    No Waiver Cumulative; Remedies.    No failure to exercise and no delay in exercising, on the part of the
Administrative Agent or any Lender, any right, remedy, power or privilege hereunder or under the other Credit Documents shall operate as a waiver thereof, nor shall any single or partial exercise of
any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and
privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law. 

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        14.4    Survival of Representations and Warranties.    All representations and warranties made hereunder, in the other
Credit Documents and in any document, certificate or statement delivered pursuant hereto or in connection herewith shall survive the execution and delivery of this Agreement and the making of the
Loans hereunder. 

        14.5    Payment of Expenses and Taxes.    The US Borrower and the UK Borrower agree (a) to pay or reimburse the
Agents for all their reasonable out-of-pocket costs and expenses incurred in connection with the development, preparation and execution of, and any amendment, supplement or
modification to, this Agreement and the other Credit Documents and any other documents prepared in connection herewith or therewith, and the consummation and administration of the transactions
contemplated hereby and thereby, including the reasonable fees, disbursements and other charges of counsel to the Agents, (b) to pay or reimburse each Lender and the Administrative Agent for
all its reasonable and documented costs and expenses incurred in connection with the enforcement or preservation of any rights under this Agreement, the other Credit Documents and any such other
documents, including the reasonable fees, disbursements and other charges of counsel to each Lender and of counsel to the Administrative Agent, (c) to pay, indemnify, and hold harmless each
Lender and the Administrative Agent from, any and all recording and filing fees and any and all liabilities with respect to, or resulting from any delay in paying, stamp, excise and other similar
taxes, if any, that may be payable or determined to be payable in connection with the execution and delivery of, or consummation or administration of any of the transactions contemplated by, or any
amendment, supplement or modification of, or any waiver or consent under or in respect of, this Agreement, the other Credit Documents and any such other documents, and (d) to pay, indemnify,
and hold harmless each Lender and the Administrative Agent and their respective directors, officers, employees, trustees and agents from and against any and all other liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever, including reasonable and documented fees, disbursements and other charges of counsel,
with respect to the execution, delivery, enforcement, performance and administration of this Agreement, the other Credit Documents and any such other documents, including any of the foregoing relating
to the violation of, noncompliance with or liability under, any Environmental Law or any actual or alleged presence of Hazardous Materials applicable to the operations of the US Borrower, any of its
Subsidiaries or any of the Real Estate (all the foregoing in this clause (d), collectively, the "indemnified liabilities"),  provided that the US
Borrower and the UK Borrower shall have no obligation hereunder to the Administrative Agent or any Lender nor any of their
respective directors, officers, employees and agents with respect to indemnified liabilities arising from (i) the gross negligence or willful misconduct of the party to be indemnified or
(ii) disputes among the Administrative Agent, the Lenders and/or
their transferees. The agreements in this Section 14.5 shall survive repayment of the Loans and all other amounts payable hereunder. 

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

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        (b)   (i) Subject
to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more assignees all or a portion of its rights
and obligations under this Agreement (including all or a portion of its Commitments and the Loans at the time owing to it) with the prior written consent (such consent not be unreasonably withheld; it
being understood that, without limitation, the US Borrower shall have the right to withhold its consent to any assignment if, in order for such assignment to comply with applicable law, the US
Borrower would be required to obtain the consent of, or make any filing or registration with, any Governmental Authority) of: 

        (A)  the
US Borrower, provided that no consent of the US Borrower shall be required for an assignment to a Lender, an
Affiliate of a Lender (unless increased costs would result therefrom except if an Event of Default under Section 11.1 or Section 11.5 has occurred and is continuing), an Approved Fund
or, if an Event of Default under Section 11.1 or Section 11.5 has occurred and is continuing, any other assignee; and 

        (B)  the
Administrative Agent, provided that no consent of the Administrative Agent shall be required for an assignment of
(1) any Commitment to an assignee that is a Lender with a Commitment of the same Class immediately prior to giving effect to such assignment or (2) any Term Loan to a Lender, an
Affiliate of a Lender or an Approved Fund. 

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

        (A)  except
in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund or an assignment of the entire remaining amount of the assigning Lender's
Commitment or Loans of any Class, the amount of the Commitment or Loans 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 the Dollar Equivalent of $5,000,000 or, in the case of a Tranche B Commitment or Tranche B Term Loan, the Dollar
Equivalent of $1,000,000 unless each of the US Borrower and the Administrative Agent otherwise consents, provided that no such consent of the US
Borrower shall be required if an Event of Default under Section 11.1 or Section 11.5 has occurred and is continuing; 

        (B)  each
partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement,  provided that this clause shall not be construed to
prohibit the assignment of a proportionate part of all the assigning Lender's rights and obligations
in respect of one Class of Commitments or Loans; 

        (C)  the
parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Acceptance, together with a processing and recordation fee of
$3,500, provided that only one such fee shall be payable in the event of simultaneous assignments to or from two or more Approved Funds; and 

        (D)  the
assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire in a form approved by the Administrative Agent. 

        For
the purpose of this Section 14.6(b), the term "Approved Fund" has the following meaning: 

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

        (iii)  Subject
to acceptance and recording thereof pursuant to paragraph (b)(v) of this Section, from and after the effective date specified in each Assignment
and Acceptance, 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 the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Acceptance, be released from its 

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obligations
under this Agreement (and, in the case of an Assignment and Acceptance covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of Sections 2.10, 2.11, 3.5, 5.4 and 14.5). Any assignment or transfer by a Lender of rights or obligations under this Agreement that
does not comply with this Section 14.6 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with
paragraph (c) of this Section. 

        (iv)  The
Administrative Agent, acting for this purpose as an agent of the US Borrower and the UK Borrower, shall maintain at the Administrative Agent's Office 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 principal amount of the Loans and any payment made
by the Letter of Credit Issuer under any Letter of Credit owing to, each Lender pursuant to the terms hereof from time to time (the "Register"). The
entries in the Register shall be conclusive, and the US Borrower, the UK Borrower, the Administrative Agent, the Letter of Credit Issuer and the Lenders may treat each Person whose name is recorded in
the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the US
Borrower, the UK Borrower, the Letter of Credit Issuer and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 

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

        (c)   (i) Any
Lender may, without the consent of the US Borrower, the UK Borrower, the Administrative Agent, the Letter of Credit Issuer or the Swingline Lender, sell
participations to one or more banks or other entities (each, a "Participant") in all or a portion of such Lender's rights and obligations under this
Agreement (including all or a portion of its Commitments and the Loans owing to it), provided that (A) such Lender's obligations under this
Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (C) the US Borrower, the UK
Borrower, the Administrative Agent, the Letter of Credit Issuer and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and
obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement
and to approve any amendment, modification or waiver of any provision of this Agreement or any other Credit Document, provided that such agreement or
instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso to Section 14.1 that
affects such Participant. Subject to paragraph (c)(ii) of this Section, the US Borrower and the UK Borrower agree that each Participant shall be entitled to the benefits of Sections
2.10, 2.11 and 5.4 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section. To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 14.8(b) as though it were a Lender, provided such Participant agrees to be subject
to Section 14.8(a) as though it were a Lender. 

        (ii)   A
Participant shall not be entitled to receive any greater payment under Section 2.10 or 5.4 than the applicable Lender would have been entitled to receive with
respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower's prior written consent. A Participant that would be a
Non-U.S. Lender if it were a Lender shall not be entitled to the benefits of Section 5.4 unless the US Borrower is notified of the participation sold to 

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such
Participant and such Participant agrees, for the benefit of the US Borrower and the UK Borrower, to comply with Section 5.4(b) as though it were a Lender. 

        (d)   Any
Lender may, without the consent of the Borrower or the Administrative Agent, at any time pledge or assign a security interest in all or any portion of its rights
under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest, provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. In order to facilitate such pledge or assignment, the US Borrower and the UK Borrower hereby agree that, upon
request of any Lender at any time and from time to time after the US Borrower has made its initial borrowing hereunder, the US Borrower or the UK Borrower, as the case may be, shall provide to such
Lender, at the US Borrower's or the UK Borrower's own expense, a promissory note, substantially in the form of Exhibit Q-1, Q-2, Q-3 or Q-4, as
the case may be, evidencing the Tranche A Term Loans, Tranche B Term Loans, Tranche B-1 Term Loans and Revolving Credit Loans and Swingline Loans, respectively, owing to such Lender. 

        (e)   Subject
to Section 14.16, the US Borrower and the UK Borrower authorize each Lender to disclose to any Participant, secured creditor of such Lender or assignee
(each, a "Transferee") and any prospective Transferee any and all financial information in such Lender's possession concerning the US Borrower and its
Affiliates that has been delivered to such Lender by or on behalf of the US Borrower and its Affiliates pursuant to this Agreement or which has been delivered to such Lender by or on behalf of the US
Borrower and its Affiliates in connection with such Lender's credit evaluation of the US Borrower and its Affiliates prior to becoming a party to this Agreement,  provided that neither the Administrative
Agent nor any Lender shall provide to any Transferee or prospective Transferee any of the Confidential
Information unless such person shall have previously executed a Confidentiality Agreement in the form of Exhibit R. 

        14.7    Replacements of Lenders under Certain Circumstances.    The US Borrower (on its own behalf and on behalf of
the UK Borrower) shall be permitted to replace any Lender that (a) requests reimbursement for amounts owing pursuant to Section 2.10, 2.12, 3.5 or 5.4, (b) is affected in the
manner described in Section 2.10(a)(iii) and as a result thereof any of the actions described in such Section is required to be taken or (c) becomes a Defaulting Lender, with a
replacement bank or other financial institution, provided that (i) such replacement does not conflict with any Requirement of Law, (ii) no
Event of Default shall have occurred and be continuing at the time of such replacement, (iii) the US Borrower and/or the UK Borrower, as applicable shall repay (or the replacement bank or
institution shall purchase, at par) all Loans and other amounts (other than any disputed amounts), pursuant to Section 2.10, 2.11, 2.12, 3.5 or 5.4, as the case may be) owing to such replaced
Lender prior to the date of replacement, (iv) the replacement bank or institution, if not already a Lender, and the terms and conditions of such replacement, shall be reasonably satisfactory to
the Administrative Agent, (v) the replaced Lender shall be obligated to make such replacement in accordance with the provisions of Section 14.6 (provided that the US Borrower shall be
obligated to pay the registration and processing fee referred to therein) and (vi) any such replacement shall not be deemed to be a waiver of any rights that the US Borrower, the UK Borrower,
the Administrative Agent or any other Lender shall have against the replaced Lender. 

        14.8    Adjustments; Set-off.    (a) If any Lender (a "benefited
Lender") shall at any time receive any payment of all or part of its Loans, or interest thereon, or receive any collateral in respect thereof (whether voluntarily or
involuntarily, by set-off, pursuant to events or proceedings of the nature referred to in Section 11.5, or otherwise), in a greater proportion than any such payment to or collateral
received by any other Lender, if any, in respect of such other Lender's Loans, or interest thereon, such benefited Lender shall purchase for cash from the other Lenders a participating interest in
such portion of each such other Lender's Loan, or shall provide such other Lenders with the benefits of any such collateral, or the proceeds thereof, as shall be necessary to cause such benefited
Lender to share the excess payment or benefits of such collateral or proceeds ratably with each of the Lenders; provided,  however, that if all or any
portion of such excess payment or benefits is thereafter recovered from such benefited Lender, such purchase shall be
rescinded, and the purchase price and benefits returned, to the extent of such recovery, but without interest. 

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        (b)   After the occurrence and during the continuance of an Event of Default, in addition to any rights and remedies of the Lenders provided by law, each Lender shall have the
right, without prior notice to the US Borrower or the UK Borrower, any such notice being expressly waived by the US Borrower and the UK Borrower to the extent permitted by applicable law, upon any
amount becoming due and payable by the US Borrower or the UK Borrower hereunder (whether at the stated maturity, by acceleration or otherwise) to set-off and appropriate and apply against
such amount any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether
direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by such Lender or any branch or agency thereof to or for the credit or the account of the US Borrower or the
UK Borrower, as the case may be. Each Lender agrees promptly to notify the US Borrower or the UK Borrower, as the case may be, and the Administrative Agent after any such set-off and
application made by such Lender, provided that the failure to give such notice shall not affect the validity of such set-off and
application. 

        14.9    Counterparts.    This Agreement may be executed by one or more of the parties to this Agreement on any number
of separate counterparts (including by facsimile or other electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. A set of the
copies of this Agreement signed by all the parties shall be lodged with the US Borrower and the Administrative Agent. 

        14.10    Severability.    Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

        14.11    Integration.    This Agreement and the other Credit Documents represent the agreement of the US Borrower, the
UK Borrower, the Administrative Agent and the Lenders with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by the Administrative Agent or
any Lender relative to subject matter hereof not expressly set forth or referred to herein or in the other Credit Documents. 

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

        14.13    Submission to Jurisdiction; Waivers.    The US Borrower and the UK Borrower each hereby irrevocably and
unconditionally: 

        (a)   submits
for itself and its property in any legal action or proceeding relating to this Agreement and the other Credit Documents to which it is a party, or for
recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the courts of the State of New York, the courts of the United States of America
for the Southern District of New York and appellate courts from any thereof; 

        (b)   consents
that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 

        (c)   agrees
that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar
form of mail), postage prepaid, to the US Borrower at its address set forth in Section 14.2 or at such other address of which the Administrative Agent shall have been notified pursuant thereto; 

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        (d)   agrees
that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other
jurisdiction; and 

        (e)   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 14.13
any special, exemplary, punitive or consequential damages. 

        14.14    Acknowledgments.    The US Borrower and the UK Borrower each hereby acknowledge that: 

        (a)   it
has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Credit Documents; 

        (b)   neither
the Administrative Agent nor any Lender has any fiduciary relationship with or duty to the US Borrower or the UK Borrower arising out of or in connection with
this Agreement or any of the
other Credit Documents, and the relationship between Administrative Agent and Lenders, on one hand, and the US Borrower or the UK Borrower, on the other hand, in connection herewith or therewith is
solely that of debtor and creditor; and 

        (c)   no
joint venture is created hereby or by the other Credit Documents or otherwise exists by virtue of the transactions contemplated hereby among the Lenders or among the
US Borrower, the UK Borrower and the Lenders. 

        14.15    WAIVERS OF JURY TRIAL.    THE US
BORROWER, THE UK BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER
CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

        14.16    Confidentiality.    The Administrative Agent and each Lender shall hold all non-public
information furnished by or on behalf of the US Borrower or the UK Borrower in connection with such Lender's evaluation of whether to become a Lender hereunder or obtained by such Lender or the
Administrative Agent pursuant to the requirements of this Agreement ("Confidential Information"), confidential in accordance with its customary
procedure for handling confidential information of this nature and (in the case of a Lender that is a bank) in accordance with safe and sound banking practices and in any event may make disclosure as
required or requested by any governmental agency or representative thereof or pursuant to legal process or to such Lender's or the Administrative Agent's attorneys, professional advisors or
independent auditors or Affiliates, provided that unless specifically prohibited by applicable law or court order, each Lender and the Administrative
Agent shall notify the US Borrower of any request by any governmental agency or representative thereof (other than any such request in connection with an examination of the financial condition of such
Lender by such governmental agency) for disclosure of any such non-public information prior to disclosure of such information, and provided
further that in no event shall any Lender or the Administrative Agent be obligated or required to return any materials furnished by the US Borrower or any Subsidiary of the US
Borrower. Each Lender and the Administrative Agent agrees that it will not provide to prospective Transferees or to prospective direct or indirect contractual counterparties in swap agreements to be
entered into in connection with Loans made hereunder any of the Confidential Information unless such Person shall have previously executed a Confidentiality Agreement in the form of Exhibit R. 

Notwithstanding
anything express or implied to the contrary herein or by the documents referred to or incorporated by reference herein, or any other prior or future oral or written statements by any
parties hereto with respect to the transactions contemplated herein or by the other Credit Documents, and whether or not any of them are legally binding, the obligations of confidentiality contained
herein and therein, as they relate to the transactions contemplated by this Agreement, shall not apply to the tax structure or tax treatment of such transactions, and each recipient (and its
employees, representatives, or other agents) may immediately disclose to any and all persons, without limitation of any kind, the 

108

 

U.S.
Federal income tax structure and such recipient's U.S. Federal income tax treatment of such transactions and any opinions or other tax analyses that have been provided by the parties hereto (or
any agent thereof) to the recipient regarding such tax structure or tax treatment. However, no such recipient shall disclose any information relating to such tax structure or tax treatment to the
extent that non-disclosure is reasonably necessary to comply with applicable securities law. This paragraph is intended to cause the transactions contemplated by this Agreement not to be
treated as having been offered under conditions of confidentiality for purposes of Section 1.6011-(b)(3) (or any successor provision) of the Treasury Regulations promulgated under
Section 6011 of the Internal Revenue Code of 1986, as amended, and shall be construed in a manner consistent with such purpose. 

        14.17    Judgment Currency.    (a) The obligations of the US Borrower and the UK Borrower hereunder and under
the other Loan Documents to make payments in Dollars or in the Foreign Currencies, as the case may be (the "Obligation Currency"), shall not be
discharged or satisfied by any tender or recovery pursuant to any judgment expressed in or converted into any currency other than the Obligation Currency, except to the extent that such tender or
recovery results in the effective receipt by the Administrative Agent or a Lender of the full amount of the Obligation Currency expressed to be payable to the Administrative Agent or Lender under this
Agreement or the other Credit Documents. If, for the purpose of obtaining or enforcing judgment against the US Borrower, the UK Borrower or any other Credit Party in any court or in any jurisdiction,
it becomes necessary to convert into or from any currency other than the Obligation Currency (such other currency being hereinafter referred to as the "Judgment
Currency") an amount due in the Obligation Currency, the conversion shall be made, at the Dollar Equivalent of such amount, in each case, as of the date immediately preceding
the day on which the judgment is given (such Business Day being hereinafter referred to as the "Judgment Currency Conversion Date"). 

        (b)   If
there is a change in the rate of exchange prevailing between the Judgment Currency Conversion Date and the date of actual payment of the amount due, the US Borrower
and the UK Borrower each covenant and agree to pay, or cause to be paid, such additional amounts, if any (but in any event not a lesser amount), as may be necessary to ensure that the amount paid in
the Judgment Currency, when converted at the rate of exchange prevailing on the date of payment, will produce the amount of the Obligation Currency which could have been purchased with the amount of
Judgment Currency stipulated in the judgment or judicial award at the rate of exchange prevailing on the Judgment Currency Conversion Date. 

        (c)   For
purposes of determining the Dollar Equivalent, such amounts shall include any premium and costs payable in connection with the purchase of the Obligation Currency. 

109

 

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

	 	 	ROCKWOOD SPECIALTIES GROUP, INC.
	

 	
 	

By	

/s/  MICHAEL W. VALENTE      
 Name:

Title:
	

 	
 	

ROCKWOOD SPECIALTIES LIMITED,
	

 	
 	

By	

/s/  THOMAS J. RIORDAN      
 Name:

Title:
	

 	
 	

ROCKWOOD SPECIALTIES INTERNATIONAL, INC.,
	

 	
 	

By	

/s/  MICHAEL W. VALENTE      
 Name:

Title:
	

 	
 	

ROCKWOOD SPECIALTIES CONSOLIDATED, INC.,
	

 	
 	

By	

/s/  MICHAEL W. VALENTE      
 Name:

Title:
	

 	
 	

ROCKWOOD HOLDINGS, INC.,
	

 	
 	

By	

/s/  MICHAEL W. VALENTE      
 Name:

Title:

110

 

        SIGNATURE
PAGE TO THE CREDIT AGREEMENT dated as of July 23, 2003, among ROCKWOOD SPECIALTIES GROUP, INC., a Delaware corporation, ROCKWOOD SPECIALTIES LIMITED, a company
incorporated under the laws of England and Wales, ROCKWOOD SPECIALTIES INTERNATIONAL, INC., a Delaware corporation, ROCKWOOD SPECIALTIES CONSOLIDATED, INC., a Delaware corporation,
ROCKWOOD HOLDINGS, INC., a Delaware corporation, the lending institutions from time to time parties hereto, JPMORGAN CHASE BANK, as Administrative Agent, MERRILL LYNCH, PIERCE, FENNER &
SMITH INCORPORATED, as Syndication Agent, and GOLDMAN SACHS CREDIT PARTNERS L.P. and GENERAL ELECTRIC CAPITAL CORPORATION, as Co-Documentation Agents. 

	 	 	JPMORGAN CHASE BANK, as Administrative Agent and as a Lender,
	

 	
 	

By	

/s/  PETER A. DEDOUSIS      
 Name: Peter A. Dedousis

Title: Managing Director

111

 

	 	 	MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as Syndication Agent,
	

 	
 	

By	

/s/  STEPHEN B. PAR      
 Name: Stephen B. Par

Title: Managing Director
	

 	
 	

MERRILL LYNCH CAPITAL CORPORATION, as a Lender,
	

 	
 	

By	

/s/  STEPHEN B. PAR      
 Name: Stephen B. Par

Title: Vice President

112

 

	 	 	GOLDMAN SACHS CREDIT PARTNERS L.P., as Co-Documentation Agent and as a Lender,
	

 	
 	

By	

/s/  ROBERT WAGNER      
 Name: Robert Wagner

Title: Authorized Signatory

113

 

	 	 	GENERAL ELECTRIC CAPITAL CORPORATION, as Co-Documentation Agent and as a Lender,
	

 	
 	

By	

/s/  JANET K. WILLIAMS      
 Name: Janet K. Williams

Title: Duly Authorized Signatory

114

 

	 	 	Institution: General Electric Capital Corporation,

as Co-Documentation Agent and as Lender
	

 	
 	

By	

/s/  JOHN J. RYAN      
 Name: John J. Ryan

Title: Manager of Operations
	

 	
 	

Institution: Trumbull THC, LTD.
	

 	
 	

By	

/s/  STACEY MALEK      
 Name: Stacey Malek

Title: Attorney in Fact
	

 	
 	

Institution: Toronto Dominion (New York), Inc.
	

 	
 	

By	

/s/  STACEY MALEK      
 Name: Stacey Malek

Title: Vice President
	

 	
 	

Institution: The Governor and Company of the Bank of Ireland
	

 	
 	

By	

/s/ OLIVIA TREACY /s/ DAVID WALSH
 Name: Olivia Treacy/David Walsh

Title: Authorized Signatories
	

 	
 	

Institution: KZH CypressTree-1 LLC
	

 	
 	

By	

/s/  ROWENA SMITH      
 Name: Rowena Smith

Title: Authorized Agent

115

 
 

Schedule 1.1 (a)    
    
    Additional Cost Formulae    
    

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

	2.
	On
the first day of each Interest Period (or as soon as possible thereafter) the Administrative Agent shall calculate, as a percentage rate, a rate (the "Additional Cost Rate") for
each Lender, in accordance with the paragraphs set out below. The Additional Cost will be calculated by the Administrative Agent as a weighted average of the Lenders' Additional Cost Rates (weighted
in proportion to the percentage participation of each Lender in the relevant Loan) and will be expressed as a percentage rate per annum.

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

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

	(a)
	In
relation to a sterling Loan: 

	 	 	 	 	AB + C(B-D) + E × 0.01
	 	 
	 	 	 	 	100-(A+C)	 	 	Per cent. per annum

	(b)
	in
relation to a Loan in any currency other than sterling: 

	 	 	 	 	E × 0.001
	 	 	 
	 	 	 	 	300	 	 	Per cent. per annum

        Where:

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

	B
	is
the percentage rate of interest (excluding the applicable Foreign Currency Borrowing margin and the Additional Cost and, if the Loan is an overdue amount, the additional rate of
interest specified in section 2.8(c) of the Credit Agreement) payable for the relevant Interest Period on the Loan.

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

	D
	is
the percentage rate per annum payable by the Bank of England to the Administrative Agent on interest bearing Special Deposits.

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

	5.
	For
the purposes of this Schedule:

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

	(b)
	"Facility
Office" means the office or offices notified by a Lender to the Administrative Agent in writing on or before the date it becomes a Lender (or, following the date, by not
less than five Business Days' written notice) as the office or offices through which it will perform its obligations under this Credit Agreement;

	(c)
	"Fees
Rules" means the rules on periodic fees contained in the FSA Supervision Manual or such other law or regulation as may be in force from time to time in respect of the payment of
fees for the acceptance of deposits;

	(d)
	"Fee
Tariffs" means the fee tariffs specified in the Fees Rules under the activity group A.I. Deposit acceptors (ignoring any minimum fee or zero rated fee required pursuant to the
Fee rules but taking into account any applicable discount rate);

	(e)
	"Participating
Member State" means any member state of the European Communities that adopts or has adopted the euro as its lawful currency in accordance with legislation of the
European Community relating to Economic and Monetary Union; and

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

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

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

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

	(a)
	the
jurisdiction of its Facility Office; and

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

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

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

	10.
	The
Administrative Agent shall have no liability to any person if such determination results in an Additional Cost Rate which over—or under—compensates any
Lender and shall be entitled to 

assume
that the information provided by any Lender including the Reference Lender pursuant to paragraphs 3, 7 and 8 above is true and correct in all respects. 

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

	12.
	Any
determination by the Administrative Agent pursuant to this Schedule in relation to a formula, the Additional Cost, an Additional Cost Rate or any amount payable to a Lender shall,
in the absence of manifest error, be conclusive and binding on all parties to this Credit Agreement.

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

QuickLinks

EXHIBIT 10.1

Schedule 1.1 (a) Additional Cost Formulae

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